1QFY2013 Result Update | Infrastructure

August 9, 2012

Nagarjuna Construction
Performance Highlights
Quarterly Highlights Standalone
Y/E March (` cr) Net sales Operating profit Net profit
Source: Company, Angel Research

BUY
CMP Target Price `39 `45
12 Months Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Infrastructure 1,004 2,507 1.7 74/28 266,656 2 17,561 5,323 NGCN.BO NJCC@IN

1QFY13 1,472 117 17

1QFY12 1,142 116 23

4QFY12 1,755 102 11

% chg (yoy) 29.0 0.3 (28.6)

% chg (qoq) (16.1) 14.4 54.0

For 1QFY2013, Nagarjuna Construction Company (NCC)s performance was significantly above our and consensus estimates. However, the company continued its dismal show at the EBITDAM level. The current outstanding order book of NCC stands at `20,520cr (3.5x FY2013E revenue), with an order inflow of `2,001cr (up 48.3% yoy) for 1QFY2013. We maintain our Buy view on the stock. Robust revenue growth offset by poor margin performance: On the top-line front, NCC reported a jump of 29.0% yoy to `1,472cr, which was higher than our and the streets expectation of `1,187cr and `1,257cr respectively. Revenue growth was driven by building, power and water divisions. On the EBITDAM front, the companys performance was in line with our estimates at 7.9%, a dip of 230bp on a y-o-y basis. The interest cost came in at `93cr, a y-o-y jump of 7.5% but a decline of 5.4% on a sequential basis. At the bottom-line level, NCC reported a y-o-y decline of 28.6% to `17cr, higher than our and consensus estimates owing to a strong performance on the revenue front. Outlook and valuation: For FY2013 the company has given a guidance of 10-15% growth on the revenue front and is hopeful of maintaining the EBITDAM at 8-9%. NCCs captive power plant is expected to contribute ~`350cr to FY2013 revenues. Further, by end of FY2013 NCC is looking to reduce its debt to below `2,000cr levels through stake sale in its road BOT and power projects. During the quarter the company has also managed to bring its receivable days down to 88 days from 91 days in 4QFY2012. The stock is currently trading at low valuation of 0.4x P/BV FY2014 and, hence, we maintain our Buy view on the stock with a sum-of-the-parts (SOTP) target price of `45.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 20.3 17.2 42.1 20.4

Abs. (%) Sensex NCC

3m 6.6 2.4

1yr 4.2 (39.0)

3yr 17.0 (69.1)

Key financials (Standalone)

Y/E March (` cr) Net sales (incl. op. income) % chg Adj. net profit % chg FDEPS (`) EBITDA margin (%) P/E (x) RoAE (%) RoACE (%) P/BV (x) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2011 5,074 6.2 163 (18.4) 6.4 9.6 6.1 7.1 9.7 0.4 0.7 6.9

FY2012 5,250 3.5 36 (78.0) 1.4 7.6 27.9 1.5 6.7 0.4 0.6 7.5

FY2013E 5,804 10.5 78 117.0 3.0 8.0 12.9 3.2 7.9 0.4 0.6 7.5

FY2014E 6,513 12.2 90 15.0 3.5 8.6 11.2 3.6 8.3 0.4 0.7 7.8

Nitin Arora
022-39357800 Ext: 6842 nitin.arora@angelbroking.com

Please refer to important disclosures at the end of this report

NCC | 1QFY2013 Result Update

Exhibit 1: Quarterly performance (Standalone)

Y/E March (` cr) Net sales Total expenditure Operating profit OPM (%) Interest Depreciation Non operating income Nonrecurring items Profit before tax Tax Reported net profit PAT (%) FDEPS (`)
Source: Company, Angel Research

1QFY13 1,472 1,355 117 7.9 93 23 23 25 7.9 17 1.1 0.6

1QFY12 1,142 1,025 116 10.2 87 20 25 35 12 23 2.0 0.9

4QFY12 1,755 1,653 102 10.3 98 22 34 15 4.7 11 0.6 0.4

% Chg (yoy) 29.0 32.2 0.3 (230)bp 7.5 14.1 (5.7) (29.6) (31.6) (28.6) (90)bp (28.6)

% Chg (qoq) (16.1) (18.0) 14.4 (240)bp (5.4) 3.7 (30.1) 58.6 69.3 54.0 50bp 54.0

FY2012 5,250 4,851 399 7.6 384 83 121 53 17 36 0.7 1.4

FY2011 5,074 4,588 485 9.6 257 69 106 266 102 164 3.2 6.4

% Chg 3.5 5.7 (17.7) (200)bp 49.5 21.1 14.1 (80.1) (83.4) (78.0) (250)bp (78.0)

Exhibit 2: 1QFY2013 Actual vs. Estimates

( ` cr) Net Sales EBITDA Interest Tax PAT
Source: Company, Angel Research

Estimates 1,187 94 102 1 2

Actual 1,472 117 93 8 17

Variation (%) 24.0 24.4 (9.0) -

Strong revenue performance led by pick-up in execution

On the top-line front, NCC reported a jump of 29.0% yoy to `1,472cr, which was higher than our and the streets expectation of `1,187cr and `1,257cr respectively. This is the second consecutive quarter of robust revenue growth after a lackluster performance for many quarters. The revenue growth was driven by building, power and water divisions. The management has given revenue guidance for FY2013 at 10-15%, which would be primarily driven by captive power project. As per the management, captive power plant contributed `82cr to the revenue for 1QFY2013 and for the full year it is expected to contribute `350cr.

August 9, 2012

NCC | 1QFY2013 Result Update

Exhibit 3: Pick-up in execution led to revenue growth

2,000 1,800 1,600 1,400 1,200 1,000 800 600 (4.7) 12.6 5.1 (9.2) (5.4) 21.0 29.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 -

Exhibit 4: Decent order inflow for 1QFY2013

8,000 7,000 6,000 5,000 4,000 3,000 31.5 (33.3) 15.6 73.3 48.3 50.0 0.0 100.0 152.6 200.0 150.0

1,335

1,450

1,142

1,090

1,264

1,755

1,472

2,729

1,349

1,701

6,893

1,000

2,000

400 200 0

(5.0) (10.0) (15.0)

2,000 1,000 -

(72.1)

577

(50.0) (100.0)

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 Sales (` cr, LHS) Growth (yoy %, RHS)

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 Order Booking (` cr, LHS) Growth (yoy %, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Projects update
Pondicherry Tindivanam: Currently, toll collection is `3.5lakhs/day, much lower
than the breakeven level of `8lakhs/day. However, the company believes that toll revenue will pick up going ahead. Western UP: Toll collection is currently at `21lakhs/day. The management expects `24lakhs/day going ahead.

Bangalore Elevated Toll Way (BETL): NCC is getting `23lakhs/day as against

breakeven level of `25lakhs/day.

Nelcast Power Project (1,320MW): NCC has achieved financial closure for the
project and has begun with civil works. On the fuel supply front, for 70% of coal requirement, the company has tied up with Coal India; and for the balance 30%, it has identified coal mines in Indonesia with its share at 50%. The total investment in the mine for NCC would be at around `50cr, out of which `8cr-10cr has already been invested. NCC has been shortlisted for signing a power purchase agreement (PPA) of 500MW with the Government of Andhra Pradesh for `3.7 per unit. Further, the company is hopeful of tying up with the governments of Karnataka and Tamil Nadu for more PPAs to ensure that it ties up 900-950MW of power through PPAs.

Himachal Sorang: NCC is now looking to achieve completion of this project in

December 2012 from its earlier guidance of June 2012.

Poor EBITDAM and higher interest cost drag earnings downwards

On the EBITDAM front, the companys performance was in line with our estimates at 7.9%, a dip of 230bp on a y-o-y basis. The interest cost came in at `93cr, a y-o-y jump of 7.5% but a decline of 5.4% on a sequential basis. As per the management the interest cost was lower on a sequential basis owing to reduction in debt in 4QFY2012. However the companys debt increased again during the end of 1QFY2013 which would result in higher interest cost going ahead. At the bottom-line level, NCC reported a y-o-y decline of 28.6% to `17cr, higher than our and consensus estimates owing to a strong performance on the revenue front.

August 9, 2012

NCC | 1QFY2013 Result Update

Exhibit 5: Dismal performance continues

140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 EBITDA (` cr, LHS) 6.1 5.8 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 EBITDAM (%, RHS) 10.2 9.6 9.0 9.5 7.9 78 128 131 117 103 102 117 12.0 11.0 10.0 9.0 8.0

Exhibit 6: PAT dragged down by poor EBITDAM and high int. cost
50.0 40.0 30.0 20.0 3.0 2.5 2.0 1.1 1.0 0.6 3.5 3.0 2.5 2.0 1.5 1.0

41

36

23

11

11

7.0 6.0 5.0

(0.8)

17

10.0 0.0 (10.0) (20.0)

0.5 0.0 (0.5) (1.0)

PAT (` cr, LHS)

Source: Company, Angel Research

Source: Company, Angel Research

Order book analysis

NCC had an order inflow of `2,001cr during the quarter, a jump of 48.3% on a y-o-y basis. This was mainly led by water and building divisions. The order book as of 1QFY2013 stands at `20,520cr (3.5x FY2013E revenue), which is spread across various verticals and the major contributors include the power, building, irrigation and water segments.

Exhibit 7: Order backlog of `20,520cr (as of 1QFY2013, ` cr)

Source: Company, Angel Research

August 9, 2012

(9)

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13

PATM (%, RHS)

NCC | 1QFY2013 Result Update

Outlook and valuation

For FY2013 the company has given a guidance of 10-15% growth on the revenue front and is hopeful of maintaining the EBITDAM at 8-9%. NCCs captive power plant is expected to contribute ~`350cr to FY2013 revenues. Further, by end of FY2013 NCC is looking to reduce its debt to below `2,000cr level through stake sale in its road BOT and power project. During the quarter the company has also managed to bring its receivable days down to 88 days from 91 days in 4QFY2012. The stock is currently trading at a low valuation of 0.4x P/BV FY2014E, hence we maintain our Buy view on the stock with an SOTP target price of `45.

Exhibit 8: Derivation of SOTP-based target price for NCC (FY2014E)

Business Segment Core Construction - Parent NCC International (Construction) Real Estate Road BOT Projects Brindavan Infra Bangalore Elevated Tollway Western UP Tollway OB Infra Pondicherry Tindivanam Power venture Himachal Sorang NCC Power Himalaya Green Total
Source: Company, Angel Research

Methodology P/E P/E P/BV NPV NPV NPV NPV NPV P/BV P/BV P/BV

Remarks 7x FY2014E Earnings 4x FY2014E Earnings 0.5 of equity invested; NCC's share 80.0% CoE -14%, NCC's share 33.3% CoE -14%, NCC's share 35.4% CoE -14%, NCC's share 30.0% CoE -14%, NCC's share 64.0% CoE -14%, NCC's share 49.0% 1.0x FY12E equity invested; NCC's share 67.0% 0.5x FY12E equity invested; NCC's share 55.0% 1.0x FY12E equity invested; NCC's share 54.0%

` cr 631.3 76.0 48.0 91.8 12.4 29.1 28.3 47.1 (25.2) 318.2 103.2 185.0 30.0 1,165

`/share 24.6 3.0 1.9 3.6 0.5 1.1 1.1 1.8 (1.0) 12.4 4.0 7.2 1.2 45

% to TP 54.2 6.5 4.1 7.9 1.1 2.5 2.4 4.0 (2.2) 27.3 8.9 15.9 2.6 100

Exhibit 9: Key assumptions

FY2009 Order Inflow Revenues Order Backlog (Y/E) OB to Sales ratio (x)
Source: Company, Angel Research

FY2010 7,948 4,778 15,370 3.2

FY2011 6,800 5,074 16,180 3.2

FY2012 10,117 5,250 20,196 3.8

FY2013E 7,938 5,804 22,330 3.8

FY2014E 8,525 6,513 24,342 3.7

4,951 4,151 12,200 2.9

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NCC | 1QFY2013 Result Update

Exhibit 10: Recommendation summary

Company ABL CCCL HCC IRB Infra ITNL IVRCL JP Assoc. L&T Madhucon NCC Patel Engg Punj Lloyd Sadbhav Simplex In. CMP 228 17 17 120 168 44 77 36 39 82 51 132 200 TP Rating FY12 273 Buy 1,514 2,128 3,988 3,131 5,606 4,971 - Neutral - Neutral 166 259 61 91 56 45 Buy Buy Buy Buy Accu. Buy Buy Top line (` cr) FY13E 2,014 2,489 4,239 3,964 6,660 5,510 FY14E CAGR (%) 2,293 2,755 4,522 4,582 7,967 6,722 23.1 13.8 6.5 21.0 19.2 16.3 16.7 14.0 17.8 11.4 3.6 11.5 8.5 14.1 18.0 (0.4) (3.7) 14.9 25.6 0.9 4.8 64.3 4.9 1.4 14.9 2.8 9.3 16.8 EPS (`) FY12 FY13E FY14E CAGR (%) 22.6 3.0 (2.3) 15.5 24.8 2.5 4.2 72.1 4.6 3.0 14.0 1.7 7.5 23.5 26.7 4.0 (1.0) 16.9 28.9 4.6 5.0 76.3 4.7 3.5 14.5 3.1 10.4 29.4 21.7 6.5 6.4 125.5 1.9 9.0 (2.6) 58.0 (1.1) 5.7 5.7 32.2 12.7 8.0 6.6 49.3 15.9 22.1 7.3 27.9 5.5 18.3 14.1 11.9 P/E 10.1 5.5 7.7 6.8 17.5 18.1 19.7 7.7 12.9 5.8 29.8 17.6 8.5 8.5 4.1 7.1 5.8 9.7 15.3 18.6 7.7 11.2 5.6 16.4 12.6 6.8 OB/ 3.9 2.8 3.5 4.3 5.6 2.5 4.3 3.5 2.7 2.3 2.9 2.5 FY12 FY13E FY14E Sales(x)

12,853 15,259 17,502 53,171 60,474 69,091 1,802 5,250 3,573 2,676 6,019 2,206 5,804 3,609 2,506 6,732 2,502 6,513 3,836 3,147 7,837

1,419 1,553

- Neutral 182 265 Buy Buy

- Neutral 10,557 11,892 13,116

Source: Company, Angel Research

Exhibit 11: SOTP break-up

Company ` ABL CCCL HCC IRB Infra ITNL IVRCL JP Assoc. L&T Madhucon NCC Patel Engg Punj Lloyd Sadbhav Simplex In. 87 17 (6) 98 46 41 28 1,221 12 25 44 69 83 265 Core Const. % to TP 32 100 (26) 59 18 67 31 79 21 54 46 100 46 100 ` 12 30 2 2 17 Real Estate % to TP 53 33 4 4 18 ` 186 16 64 180 30 4 16 99 Road BOT % to TP 68 73 39 70 54 8 16 54 Invst. In Subsidiaries ` 4 20 332 % to TP 3 33 21 ` 33 33 12 15 19 Others % to TP 13 36 21 34 20 Total ` 273 17 22 166 259 61 91 1,553 56 45 95 69 182 265

Source: Company, Angel Research

August 9, 2012

NCC | 1QFY2013 Result Update

Company background
Nagarjuna Construction Company, starting off as a building/industrial construction company, has emerged as an EPC contractor with a diversified product portfolio. NCCs presence across all the key infrastructure verticals: 1) roads; 2) buildings; 3) water; 4) irrigation; 5) electrical; 6) power; 7) oil and gas; and 8) metals endows it with a relatively de-risked business model. NCC has also ventured in international geographies such as Oman and UAE, which further diversifies its business.

August 9, 2012

NCC | 1QFY2013 Result Update

Profit & loss statement (Standalone)

Y/E March ( ` cr) Net Sales Other operating income Total operating income % chg Total Expenditure Net Raw Materials Other Mfg costs Personnel Other EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Inc. (% of PBT) Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earnings of asso. Less: Minority interest (MI) Prior period items PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) (Reported) Fully Diluted EPS (`) (Diluted) % chg FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 4,151 4,151 19.5 3,778 1,304 2,084 189 201 374 3.9 9.0 53 320 2.8 7.7 162 70 30.7 228 (6.9) 228 74 32.6 154 154 154 (5.0) 3.7 6.5 6.0 (5.0) 4,778 4,778 15.1 4,294 1,807 2,066 184 237 483 29.4 10.1 53 431 34.5 9.0 196 69 22.6 303 33.0 (34) 337 116 34.5 221 4 217 200 30.2 4.2 8.4 7.8 30.2 5,074 5,074 6.2 4,586 1,756 2,335 244 251 488 0.9 9.6 69 419 (2.7) 8.3 257 106 39.4 268 (11.7) 268 97 36.3 170 5 166 163 (18.4) 3.2 6.5 6.4 (18.4) 5,250 5,250 3.5 4,851 1,961 2,463 240 187 399 (18.1) 7.6 83 316 (24.5) 6.0 384 121 227.8 53 (80.2) 53 17 32.0 36 36 36 (78.0) 0.7 1.4 1.4 (78.0) 5,804 5,804 10.5 5,338 1,900 2,913 235 291 466 16.6 8.0 91 375 18.5 6.5 382 123 106.2 116 118.4 116 37 32.4 78 78 78 117.0 1.3 3.0 3.0 117.0 6,513 6,513 12.2 5,954 2,095 3,268 264 326 559 20.0 8.6 104 455 21.3 7.0 462 141 105.7 133 15.0 133 43 32.4 90 90 90 15.0 1.4 3.5 3.5 15.0

August 9, 2012

NCC | 1QFY2013 Result Update

Balance sheet (Standalone)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves & Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Investments Current Assets Inventories Sundry Debtors Cash Loans & Advances Other Current liabilities Creditors/Adv/Other Liabilities Mobilisation Adv & Others Provisions Net Current Assets Mis. Exp. not written off Total Assets 623 164 459 28 740 3,361 750 1,026 135 1,448 3 1,641 1,088 467 87 1,721 0 2,948 756 202 554 43 941 4,092 754 1,299 184 1,852 3 1,845 1,270 480 96 2,247 3,785 923 249 675 47 1,201 4,946 896 1,454 140 2,447 9 1,974 1,356 547 71 2,971 4,894 1,043 331 711 50 1,240 6,052 1,234 1,307 65 2,537 909 3,561 3,512 48 2,491 4,492 1,223 422 801 56 1,588 6,027 1,330 1,424 43 3,216 13 3,447 3,397 51 2,579 5,024 1,403 526 877 61 1,936 6,638 1,140 1,598 59 3,824 16 3,602 3,549 53 3,036 5,910 46 1,640 1,686 1,244 19 2,948 51 2,178 2,230 1,530 25 3,785 51 2,327 2,379 2,484 31 4,894 51 2,360 2,411 2,056 25 4,492 51 2,396 2,447 2,551 25 5,024 51 2,444 2,495 3,389 25 5,910 FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

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NCC | 1QFY2013 Result Update

Cash flow statement (Standalone)

Y/E March (` cr) Profit before tax (excl MI) Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E 228 53 435 70 132 (355) (7) (175) 70 (113) 350 35 55 370 (98) 233 135 337 53 477 69 116 (272) (148) (201) 69 (280) 361 286 39 (6) 602 49 135 184 268 69 768 106 97 (635) (170) (260) 106 (324) 954 30 (9) 915 (44) 184 140 53 83 (405) 121 17 403 (123) (39) 121 (41) (428) 42 33 (437) (75) 140 65 116 91 110 123 37 (64) (186) (348) 123 (411) 496 42 454 (22) 65 43 133 104 440 141 43 (386) (185) (348) 141 (393) 838 42 796 17 43 59

August 9, 2012

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NCC | 1QFY2013 Result Update

Key ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Order Book to Sales Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value DuPont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROACE (Pre-tax) Angel ROIC (Pre-tax) ROAE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cyc (ex-cash/mob.adv)(days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 0.7 3.0 2.0 0.6 2.8 2.2 1.0 4.8 1.6 0.8 5.0 0.8 1.0 5.4 1.0 1.3 6.0 1.0 6.5 57 83 137 120 6.9 57 89 126 139 6.0 59 99 131 176 5.3 74 96 188 183 5.1 81 86 217 156 5.0 69 85 195 154 11.8 12.7 9.4 12.8 13.4 10.2 9.7 10.0 7.1 6.7 6.9 1.5 7.9 8.0 3.2 8.3 8.4 3.6 7.7 0.7 1.6 8.5 10.2 0.5 7.6 9.0 0.7 1.5 8.8 9.3 0.6 8.5 8.3 0.6 1.2 6.4 8.1 0.8 5.0 6.0 0.7 1.1 4.7 11.5 0.9 (1.5) 6.5 0.7 1.2 5.4 11.2 0.9 (0.0) 7.0 0.7 1.2 5.7 10.5 1.2 (0.1) 6.5 6.0 8.1 1.1 65.7 8.4 7.8 9.9 1.3 86.9 6.5 6.4 9.0 1.0 92.7 1.4 1.4 4.6 1.4 94.0 3.0 3.0 6.6 1.4 95.4 3.5 3.5 7.6 1.4 97.2 6.5 4.8 0.6 2.8 0.5 5.7 0.7 2.9 5.0 4.0 0.5 3.3 0.5 4.9 0.6 3.2 6.1 4.3 0.4 2.6 0.7 6.9 0.7 3.8 27.9 8.4 0.4 3.6 0.6 7.5 0.7 3.8 12.9 5.9 0.4 3.6 0.6 7.5 0.7 3.8 11.2 5.2 0.4 3.6 0.7 7.8 0.7 3.7 FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

August 9, 2012

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NCC | 1QFY2013 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

NCC No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

August 9, 2012

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