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1. Performance matters. moneyvidya.com is an independent rating service for equity analysts Buy Pioneer Investcorp with a 1 year target of 98 Arun’sprevious recommendationscan be found on moneyvidya.com 30st June 2010 ArunMukherjee (Arunthestocksguru) Executive summary In early 2008 Citigroup was all set to acquire a stake for a stunning 400crs. (current total market cap is below 85crs ). The current position of the company makes it a solid 12 month buy and I expect a 30% upside from current price. Number of picks Success rate On target Av. Monthly return Vs Nifty 83 91% 82% 12.7% +5.9% Business overview Pioneer Investcorp primarily provides merchant banking and securities market services in India. The merchant banking arm comprises private equity and mezzanine finance, private investment in public enterprise, mergers and acquisitions advisory, debt syndication, structured finance, operational and financial restructuring. The securities division is active in equity research, cash equities, equity derivatives as well as offering fund management and portfolio management services. It also offers insurance advisory services, including general insurance and reinsurance brokerage.. Human capital The main raw material for this industry business is ‘talent’ and Pioneer have some great brains working with them. The company is run by a very efficient and influential manager, Gaurang Gandhi. It has recently acquired G Alankara from SSKI to head its institutional sales and Anil Verma from Bajaj Allianz to head of its direct insurance business. Follow ArunMukherjee and other top Analysts on moneyvvidya.com

2. Performance matters. moneyvidya.com is an independent rating service for equity analysts Price It is worth noting that this scrip once commanded a price of 900 bucks in the bourses. The stock is currently quoting at around par to its enterprise value and a discount to book value; most of its peers are quoting at 3x to 4x book. Financial stability Pioneer had been growing at CAGR of 150+% between 2005-2008, the 2009 results were an aberration for obvious reasons. Pioneer restructured itself last year and now holds 30 crores cash and 50 crores in liquid investments vs a market cap of only 85 Crs. Debt levels are also heavily reduced. Promoter confidence Promoters have been increasing their stake and have issue warrants to themselves at a 50% premium to current price which is really an inspiring thing. Confidence and conviction of the promoters are vital stuff and should be considered big positive. Conclusion Pioneer Investcorp is not a play on PE or any other valuation metrics but its a play on potential, prospects and business dynamics. I assign a buy on the counter with a target price of 98rs to be achieved in the next 9-12 months thereby generating a return of 30%. Follow ArunMukherjee and other top Analysts on moneyvvidya.com