But, is any more steam left in the stock? The answer is yes. The company has an exciting future ahead. The company is expected to register a growth of around 35-40 per cent in the topline in the next three years and the bottomline is expected to grow at a rate of 45-50 per cent. Increased share of branded products and higher exports to US markets are going to be the driver of growth in future.

A leading leather garment manufacturer and exporter, Bhartiya International launched its own brand `Monks Italia' in the last fiscal. In the first year of its launch, the brand accounted for 10 per cent of the company's turnover. In the current fiscal, the share is expected to go upto 25 per cent and in fiscal FY2001 branded products should contribute more than half of total sales of Bhartiya International. Since the branded products have higher margins, the increased share of these would mean proportionately higher growth in the bottomline than topline.

The company is currently setting up a distribution network by appointing marketing managers in six cities in Europe and opening up a marketing office in US. In fiscal 1998, Bhartiya established a fully operational branch at Florence in Italy. This branch was set up by acquiring a renowned Italian company `La Florense Spa'' with thirty years of experience in the leather garments business. To invest in the branch, the company has set up a 100 per cent subsidiary in Luxembourg called Bhartiya International Holdings SA with an initial capital of US $ 0.5 million and further US $ 3 million over the next three years.

The funds pumped in will be used for brand building, setting up marketing offices and workshops. The investment made in the subsidiaries has been totally secured as the company has raised an equivalent amount through ECB route which has been given to Deutche Bank to generate income more than eight and quarter per cent (the ECB's cost).

In the next couple of years, the company is expected to gain from increase in its coverage which would lead to derisking of its business. Currently, the company is dependent on few clients, sales from top 4 customers account for 47 per cent of its turnover. However, with the share of branded sales expected to increase in the next couple of years and widening of area covered this risk will be taken care of.

The company at present has two operational factories at Bangalore and one is expected to go on stream soon. This will further add to the company's revenues. With the Indian customers also coming of age, the company has huge untapped potential in the domestic market. To test the waters, the company has opened a showroom in Delhi to market its `Monks Italia'. The company which went public in 1994, is among the few which have kept their promises.

The company has been rewarding shareholders very handsomely in the past and is expected to continue to do the same in future. In the current fiscal, the company is expected to report a turnover of Rs 80 crore and a net profit of Rs 14 crore. The scrip is currently trading at PE of mere 9 times. Thus leaving scope for further appreciation.