Apart from the hit on the earnings front thanks to a bloated equity, the premium (of Rs 63 per share) is not attractive considering that ICICI is currently quoting at almost the same level on the Bombay Stock Exchange. In fact, the stock had been languishing at Rs 40-50 level for quite some time before rumour mongers pulled it up to Rs 95. Despite the not-so encouraging first-quarter results from the Mumbai-based financial institution, the stock attracted buying interest thanks to rumours of a UK-based group picking up a stake in the company.

Hikal Chemicals

Even after a four-fold rise from Rs 50 to the current level of Rs 200, Hikal Chemicals is an excellent pick for long-term investors. The stock, despite the stupendous rise to Rs 203, trades at a very attractive price earning multiple of less than 7. Further, on a low equity base of Rs 5.03 crore, the actual floating stock (as a result of a very high promoter stake) is as low as 14 per cent. The Hiremathfamily holds 36 per cent, while an investment company of the Kalyani family holds 35 per cent and Sumitomo Corporation holds another 14 per cent.

Rolta India

In spite of being a leader in the higher-end CAD/CAE/CAM segment, Rolta India Ltd enjoys a low PE multiple of a mere 15. Riding high on the software mania, the scrip had moved up from Rs 114 to touch a 52-week high of Rs 161. But the company's decision to become an Internet Service Provider (ISPs) has had an negative impact on the stock. The scrip has now fallen to Rs 138, providing bargain hunters an excellent opportunity to enter for long-term gains.

Kale Consultants

Cashing in on the primary software IPO boom, Kale Consultants is charging a premium of as high as Rs 110. This is the highest priced software IPO in the recent past after Polaris Software which had charged a premium of Rs 200 for its IPO. On the face of it, the company is offering 31.87 lakh shares at an attractive price-earning multiple of 4.6 times (based on an EPSof Rs 26.07 for fiscal 1999). However, the catch lies in the fact the company went in for a major equity dilution during the beginning of the current financial year.