Lakshmi Energy- Buy On Dips.~BRICS

Lakshmi Energy will be declaring its Q3FY07 results today. We expect the company
to register a strong performance considering that the third quarter typically
outperforms the preceding two, as bulk paddy procurement begins during this
period. Moreover, Lakshmi has raised its rice processing capacity by 80 MTPH, the
beneficial impact of which would be felt from Q4FY07 onwards. In view of the
added capacity coming onstream, we have revised our financial projections for
FY07 and FY08. Our target price now stands revised upwards by 7% to Rs 280. BUY.