In 1995 Infosys traded at a market cap of about Rs 414 crores the growth was always looked upon with disbelief. The PE was less then growth and the Management was professional. At the time of IPO Narayan Murthi had great difficulty in finalizing a merchant banker as nobody wanted to handle a software company? Initially there were concerns that all the growth would stop post the year 2000 (after the Y2k projects got over ) the company continues to show growth year after and will employ more then  50,000 software professionals this year..

• Comfortable PEG (Price Earning to Growth)
  
• Low Market Cap
  
• New Sector
  
• Phenomenal growth prospects
  
• Exchange rate advantages
  
• Professional management
  
• Lack of professionals
  

In late 2003 Nagarjuna Construction traded at Rs 90 with a market cap of Rs 100 crores . The PE was less then 5 times had a book value greater then the price and a dividend pay out ratio of 3%, which protected the down side. While the company was in safe hands as there was nothing to believe that the management lacked integrity construction stocks lacked flavor. The spate of National Highway projects created demand for the sector and once it was recognized the stock is up more then 15 times.6 times.

• Comfortable PEG
  
• Low Market Cap
  
• Old Sector with structural shifts in dynamics

• Phenomenal growth prospects
  
• Management concerns
  
• Professional management
  
• Unorganized nature of the Construction Industry
  

In 2003 Pantaloon at a market cap of Rs 85 crores and sales of Rs 450 crores trades at a P/E of 8 at Rs 50.the Management was confident of 50% plus growth but nobody took the promoter seriously. There was a very low Institutional ownership. Except for the subjective fear of an unknown management things looked all right. After all Narayan Murthi and Dhirubhai were also first generation promoters. Analysts still raise concerns on the company's inventory accounting policies but the stock is up more then 40 times in 3 years.

• Low PEG
  
• Low Market Cap
  
• New Sector
  
• Good growth prospects
  
• Unknown management
  
• Lack of professionals
  
  

In 2003 Bharti Tele traded at a market cap of Rs 4,000 crores. A loss making company with Prospective threat from the Reliance Infocom stable, cut throat competition in terms of billing rates, Bharti Televentures had nothing going for it inn terms of news flow. The company continued to report scintillating growth quarter after quarter. Investors had seen how China Mobile and China Unicom had become billion dollar businesses.

• New Sector
  
• Good growth prospects
  
• Unknown management
  
• Company controlled more then 30% of India 's mobile telephony market
  
• Mobile telephony companies had gone up manifold in other emerging markets