These are the kind of stocks that see good appreciation  - so good that it even beats the sensex over long periods of time. So I do realize that they might fall just like a typical growth stock. But with these stocks, there will be a little voice in my head saying "You will still get 5% of the invested amount soon, just like in a liquid fund".

Bought KCP Ltd  (www.kcp.co.in)

KCP is a diversified company with interests in cement, heavy engineering, sugar, hydro power, wind power, software, biotechnology and hotels. Looks like JP Associates is a role model for this company.

The heavy engineering division makes cement, steel, sugar and power plant machinery. This division contributes 25% to the topline and has OPM of 50%! Sugar business is thankfully located not in India, but in Vietnam - where there are no price controls.

KCP Ltd could get a P/E re-rating when its capital goods business starts contributing more to the topline.

Market Cap: Rs. 389 crores
P/E: 5.0
Dividend Yield: 3.3%
4 Yr Sales Growth: 25% CAGR
4 Yr Profit Growth: 60% CAGR
FY09 Sales/Profits: Rs. 405 crores and Rs. 65 crores
Dividend per share from FY05 to FY09: 3.00, 5.00, 10.00, 10.00, 10.00
RoE: 27%

- However one spins the KCP story, what's quite obvious is that it is still a commodity company (for now). About 60% of its revenues come from cement while sugar contributes around 12%.

- Management expects the heavy engineering division to report flat topline growth in FY10

- Company getting into software & biotechnology (both in losses right now) implies that promoters want to try their luck with the latest fad.

- Diversifying into hotel business this year. Hmm... just because JP Associates too has a hotel?