Strong revenue and earning growth .

We expect OPTO CIRCUITS INDIA LTD to register a strong 56.7% and 43.7% compounded growth in revenues and earnings, respectively over the next two years. For FY09, we expect revenue growth of 73.9% to Rs.8.1bn and net profit growth of 43.5% to Rs.1.9bn. We expect 43% and 44% growth in EPS in FY09 and FY10, respectively. Strong global distribution network: OCIL has strong global distribution network through its subsidiaries. While AMDL takes care of domestic marketing, Mediaid Inc. has worldwide distribution network with major presence is in the US markets. EuroCor (its German arm) has a presence in almost 35 countries through its dedicated distributors. We believe this helps company to sell its products globally in most efficient manner. In FY08, OCIL generated 89% of sales from international markets. Currently, the company has more than 200 distributors worldwide and strength of 80 people in sales and marketing. We maintain BUY recommendation with target price of Rs.463 over a period of 6-9 months time horizon.