Improved sales from Rs 11.22 crore to Rs 17.53 crore coupled with lower interest costs at Rs 76.91 lakh has helped the company report a gross profit of Rs 1.54 crore against a gross loss of Rs 1.42 crore reported for six month period ended December 31, 1997.

The company has been in the red all these years due to time and consequently, a huge cost overrun. Initial teething problems coupled with stiff competition from organised and unorganised sectors affected the offtake of the company's products. As on December 31, 1998 the company's accumulated losses stood at Rs 19.97 crore. In 1997-98, the company incurred a loss of Rs 2.64 crore on account ofexchange rate fluctuations. This, coupled with a gross loss of Rs 10.79 lakh and depreciation of Rs 2.31 crore, translated into a net loss of Rs 3.43 crore. However, the company's performance has shown a substantial improvement since second half of 1997-98.

Tudor India, a subsidiary of Exide Corporation of USA, is likely to turnout a dark horse on the bourses. The parent company's stake has recently gone up from 51 per cent to 75 per cent as Indian promoters have sold their stake to foreign collaborators. Stock market history throws up any number of turnaround stocks that posted extraordinary returns. Tudor India appears to be one such stock which could prove to be a potential turnaround. Although the company has reported profits for the first half of fiscal 1999, whether it will be able to sustain it for full year or not is yet to be seen. The scrip had traded in the range of Rs 15-30 for most of period in 1998.

However, the stock rallied in December from Rs 29 level to peak at Rs 45.9 in February as itwas re-rated after hike in the parent's stake from 51 to 75 per cent.

However, the stock seems to have run out of steam as it has again fallen to Rs 36. A multi-bagger, Tudor is an excellent pick at these levels with a medium to long term outlook.

Tudor India is into the manufacture of batteries with its present capacity at 4 lakh units which would be increased to 8 lakh through an expansion. The company manufactures batteries in the range of 12V-32AH (Ampere Hours) to 12V-200AH. The company markets its batteries under `Prestolite' brand.

In an industry characterised by volume-driven earnings growth, the company faces stiff competition from bigger players like Exide Industries. With the acquisition of Standard Batteries' production facilities by the market leader, it is likely to intensify competition in the industry. On the other hand, with Exide Industries slated to commission expanded facilities for the manufacture of automotive batteries, it will further fuel competition. The prospects of Amara RajaBatteries, which currently is confined to the industrial batteries segment, venturing into the automotive segment would not be a positive development as far as Tudor India is concerned. But with technical and financial muscle of Exide Corporation backing Tudor and an improvement in its performance, the investment in the stock is relatively risk free.