Some more fundamentally good stocks to look at:-

1)Scripscan:Unichem Laboratories Ltd
Cmp:163
Code:506690

Story:Unichem focuses on domestic market and is ignored by analysts as, it does not have ANDA Funda and does not spend heavily on R&D. However, co. has a good track record with consistent rise in its topline and bottomline. Its profits for 9 months are higher than profits of entire previous year. Stock is available at 4.62 x FY09E EPS.Also a bonus candidate.Price target of Rs. 230-240 appears plausible.

2)Scripscan:Nagarjuna Construction Company Ltd
Cmp:60
Code:500294

Story:Very few infra companies in India have delivered such big growth (without any political blessings). In 5 years, not only its topline has tripled but profits have also more than tripled. Despite sharp rise in steel/cement prices, company has achieved decent profits for 9 months. Its Order Book is around 13,000 crs. However, scrip has been beated down as some of its projects are JV with Maytas. Even if Maytas JV Projects remain in limbo, Nagarjuna Construction is a big company which is capable of maintaining its growth momentum. It had paid 65% dividend. Extremely efficient and fairly reliable promoters.Scrip is trading at 8 x FY09E EPS. Definitely, underpriced and worth buying at dips.

3)Scripscan:United Phosphorus Ltd
Cmp:106
Code:512070

Story:UPL is the largest agro chemicals company in India. Company went for aggressive scale-up by acquiring several cos. It has also become sixth largest agro chemical company in the world.Stock is trading at 9.5 x FY09E EPS.Investment at current levels can deliver 40%.

4)Scripscan:CESC Ltd
Cmp:220
Code:512070

Story:In Power Sector, CESC looks highly underpriced.Company also holds investment in group's retail venture spencer.Scrip is trading at 7.00 x FY09E EPS.Only negative is that,promoters in the market do not enjoy high reputation.Still, if market picks up, CESC can go up 30-40%.

5)Scripscan:Thermax Ltd
Cmp:190
Code:500411

Story:Thermax is a leading name in India in Energy and Environment solution projects.Thermax is a very very strong brand.Despite higher metal prices, company has delivered good performance in 9 months. Its Order Book is around Rs. 4000 crs. However, scrip is definitely underpriced at 8 x FY09E EPS. With some slowdown, scrip like Thermax does not deserve to be downgraded so viciously. Promoters of the co. deserve premium in the peer group.In the bull run, P.E. Ratio of 30 was also considered fair.

6)Scripscan:Texmaco Ltd
Cmp:48
Code:505400

Story:This Birla Group Co. is the oldest and leading producer of Railway Wagons. Company also has large surplus Real Estate and holds big investments in listed companies of the group.Texmaco should be the main beneficiary from planned expansion by railways, proposed freight corridors.Worth buying at 5.83 x FY09E EPS.

Regards,
Arun
I can be reached at:arunanalyst@rediffmail.com