IKF TECHNOLOGIES LIMITED

DISCLAIMER–the following article was written through research using the internet,exchange websites and print media.All the data so collected has not been personaly verified.Readers(if any), pls do your own verifiction before investing.

BSE CODE-532414

CMP-rs 7.30(18\9\2007)

RISK-high risk,high return

HISTORY-Incorporated in 2000,became a public holding,hurriedly in 2001 as ikf software,it later changed its name to ikf technologies.Started as a software company with expertise in the area of wireless data system and WDC.Later strayed to different areas.

PRESENT AREA OF OPERATION-1. IT@Telecom 2.ITES 3.BIO-FUEL

PROMOTER HOLDING- low,about 4.1%.Has been decreasing since inception.But this is due to equity dilution and not because of the promoters selling.However it may be noted that FII’S have been showing some interest of late.They presently hold 1.59% .

FINANCIALS-Very average.Claims to have recorded a turnover of 100 crores for 2006-07.(If you go through its financials,you will suerly be as confused as me)

SO WHATS THE BUZZ- Well its their bio-fuel venture which they are pursuing aggressively.presently bio-fuel is being mixed with diesel.Europe is presently mixing biofuel.there it has to be 5% by 2010 7.5% by 2015 and 10% by 2020.Biofuel according to some has a great future.Its advantages include,lower oil import,lesser pollution,greater engine life,better drivability.Some global majors have set shop in india for the same (KTK GERMAN BIO,BRITISH PETROLEUM ETC).even Daimler chrysler has set up a plan,mainly for trials.It is testing cars that can run on pure biofuel.

although there are lot of players including multinationls,ikf tech seems to have early starter advantage. so what is it doing?

1. it has set up refinery in rajastan and is presently expanding capacity. 2.It is undertaking contract farming of jatropha seeds in 5000 hectors 3.it has acquired land in meghalaya and is cultivating the same there. 4.it has agreement with IOC for perfecting mixing grade biodiesel 5.it has approched few african nations for buying 150000 hectors of wasteland for cultivating jatropha .permission awaited . although number of european countries are also buying land in africa for the same purpose,no one is as agressive as ikf.

all in all it is high risk stock.if indeed biofuel becomes fuel of the future as is being projected and if this is genuine company,we have 10 bagger here. The risk is minimal.Suppose you invest 70000,you will loose 20-30 thousnd t the most.however there is good chance of erning 7 lak.So if you re willing to take risk nd wait for two year,start nibbling at this one in small packets.

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