I have looked at this small cap company on 3 parameters i.e, Right business, Right promoters, Niche/Scale of business.

Business:-

• Sterling Holiday Resorts (India) is available at Rs70 (Mcap = 200Cr).
  
• They have 14 resorts across the country.
  
• The Mountains ->» Kodaikanal» Lonavala» Manali» Munnar» Mussoorie» Ooty» Darjeeling» Yelagiri» Yercaud
  The Beaches-> » Goa» Mahabalipuram» Puri
  Pilgrimage Centers ->» Puri» Swamimalai

Management:-

• 32 lakhs (12% of total equity share of 2.7Cr) warrants issued to promoters at a price of Rs 73.16/-

Scale:-

• Time sharing resorts are new business in India, as of now only Country Club and Club Mahendra plays in this niche area. So scope of expension is much more since middle class consumption and life style is changing.

Trigger:-

• Mahindra Holidays & Resorts India Ltd., (MHRIL) a part of the Infrastructure Sector of the Mahindra Group, the company’s flagship brand ‘Club Mahindra Holidays’, today has a fast growing customer base of over 60,000 members and 15 beautiful Resorts at some of the most exotic spots in India and abroad.
  
• The pre-IPO placement deal values the leisure hospitality provider at around Rs 4,000 crore ($1 billion).
  
• MHRIL has filed for its IPO, which will see a sale of 10 million equity shares of Rs 10 each at a premium. This would constitute about 13 per cent stake of the fully diluted post-issue paid-up capital of the company.
  
• Country Club (India) Ltd another player in same business has Mcap of 821Cr. Sales 240Cr/Profit 60Cr FY08, PE=15.
  
• Sterling Holiday Resorts (India), Mcap = 200Cr, Sales 30Cr/Profit 12Cr approx FY08.
  
• Mahindra Holidays & Resorts India Ltd = Mcap:4000Cr; Country Club (India) Ltd = Mcap: 821Cr but Sterling Holiday Resorts (India) Mcap is just 200Cr.
  
• There is valuation gap, so Country Club and Sterling Holidays will catchup the.

I am expecting Sterling Holidays currently at Rs70 to move up and reach min 200+ by the time IPO of Mahendra Holidays comes (it is expected to come in Jan-Feb'08). So we can look at this stock as multibagger in couple of months.