Basant Agro Tech India Ltd (CMP Rs 46.80)

The company has informed that the Government of India has enhanced the subsidy on SSP Fertiliser for the year 2008-09. Henceforth the subsidy on SSP Fertiliser shall be Rs 3658/- Per MT against Rs 1125/- Per MT, which is almost 225% increase. It has also announced the uniform all India MRP for SSP Fertiliser. Considering the revised MRP & enhanced subsidy on SSP Fertiliser the Company will be benefited substantially as the net realization will improve.

Also subsidy will be linked to price escalation which again will benefit the Company. We believe that this will have positive impact on overall performance of the company in

long run & bottom line of the company will improve. At CMP, the stock is trading at 6.95x its trailing earnings. We recommend an “ACCUMULATE”.