2QFY2013 Result Update | Textile

November 9, 2012

Page Industries
Upgrade to Accumulate
Y/E March (` cr) Net Sales Operating profit OPM (%) Adj. PAT
2QFY13 220 44 20.0 31 2QFY12 181 36 19.7 25 % chg. (yoy) 21.9 23.7 30 bp 21.4 1QFY12 218 47 21.4 33 % chg. (qoq) 0.9 (5.8) (142)bp (6.1)

ACCUMULATE
CMP Target Price
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

`3,356 `3,602
12 Months
Textile 3,744 59 0.4 3,350 / 2,275 1,803 10 18,684 5,686 PAGE.BO PAG IN

Source: Company, Angel Research

For 2QFY2013, Page Industries (Page) reported numbers in line with our expectations on all fronts. The company's top-line grew by 21.9% yoy to `220cr from `181cr in the same quarter last year, in-line with our estimate of `215cr for the quarter. The EBITDA margin for the quarter expanded marginally by 30bp yoy and came in at 20.0%, against our estimate of 20.2%. Consequently, the company reported a profit of `31cr, 21.4% higher yoy from `25cr in 2QFY2012, in line with our estimate of `30cr. Huge market size and strong brand image to drive growth: According to industry reports, the Indian innerwear industry stood at `14,000cr (in FY2011) and is expected to grow at CAGR of 13.2% to `43,700 by FY2020. The innerwear market in India is underpenetrated with per capita spend significantly lower than other Asian peers which provides huge opportunity to the company. With a market share of 21% in mens segment and 12% in womens segment, we expect Page to use the opportunity and report a revenue CAGR of 22.3% to `1,023cr in FY2014E. This is also backed by the strong brand image and pan India distribution channel consisting of 400 distributors, 72 Exclusive JOCKEY outlets and ~23,000 retail outlets across 1,200 cities. Outlook and valuation: Expecting the companys revenue and profit to grow at a CAGR of 22.3% and 28.5% FY2012-14E over to `1,023cr and `149cr respectively in FY2014E and considering its robust RoE profile, we have assigned a P/E multiple of 27x for its FY2014E earnings. The stock is currently trading at a PE of 25.2x FY2014E earnings. We upgrade the stock to Accumulate with a target price of `3,602, valuing the stock at 27x FY2014E earnings.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 58.2 17.1 19.9 4.9

Abs.(%) Sensex PAGE

3m 7.1 9.5

1yr 7.3 26.6

3yr 14.2 408.6

Key financials
Y/E March (` cr) Net sales % chg Net profit % chg FDEPS (`) EBITDA margin (%) P/E (x) RoE (%) RoCE (%) P/BV (x) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010
339 33.3 40 25.2 19.4 35.5 94.5 37.8 42.6 40.1 11.2 57.7

FY2011
492 44.8 59 47.9 18.5 52.5 63.9 30.2 52.6 39.3 7.8 42.3

FY2012
683 39.0 90 53.9 19.5 80.8 41.5 22.6 62.3 47.2 5.6 28.5

FY2013E
836 22.3 118 30.6 20.2 105.6 31.8 16.2 59.3 53.1 4.5 22.5

FY2014E
1,023 22.4 149 26.4 20.6 133.4 25.2 11.4 53.2 52.7 3.7 17.9

Tejashwini Kumari
022-39357800 Ext: 6856 tejashwini.kumari@angelbroking.com

Please refer to important disclosures at the end of this report

Page Industries | 2QFY2013 Result Update

Exhibit 1: 2QFY2013 performance

Y/E March (` cr) Net Sales Net raw material (% of Sales) Employee Cost (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit OPM (%) Interest Depreciation Other Income PBT (% of Sales) Tax (% of PBT) Reported PAT Extraordinary Expense/(Inc.) Adjusted PAT PATM (%)
Source: Company, Angel Research

2QFY13
220 105 47.6 34 15.6 37 16.8 176 44 20.0 2 3 5 45 20.3 14 31.1 31 31 14.0

2QFY12 181 90 49.7 29 16.0 26 14.6 145 36 19.7 1 3 6 38 20.8 12 32.5 25 25 14.0

% chg. (yoy) 21.9 16.8 18.8 40.2 21.4 23.7 30 bp 42.5 7.8 (10.9) 19.1 14.2 21.4 21.4

1QFY13 218 109 50.1 33 15.1 29 13.4 171 47 21.4 2 3 7 49 22.5 16 33.4 33 33 15.0

% chg. (qoq) 0.9 (4.0) 4.1 26.5 2.7 (5.8) (142)bp (8.5) 4.9 (27.1) (9.2) (15.4) (6.1) (6.1)

HY2013
438 214 48.9 67 15.4 66 15.1 347 91 20.7 3 5 12 94 21.4 30 30.3 64 64 14.5

HY2012
357 174 48.6 56 15.8 48 13.4 278 79 22.2 3 5 10 81 22.6 28 34.4 53 53 14.9

% chg
22.7 23.4 19.2 38.1 25.1 15 (147)bp 9.1 9.8 22.6 16.1 8.9 19.8 19.8

Exhibit 2: Actual vs Estimates

Y/E March (` cr) Net sales EBITDA EBITDA margin (%) Reported PAT
Source: Company, Angel Research

2QFY13
220 44 20.0 31

Angel est.
215 43 20.2 30

% diff
2.5 1.5 (20)bp 2.3

In-line result on all fronts

Page reported numbers for 2QFY2013 in line with our estimates on all fronts. The top-line grew by 21.9% yoy to `220cr in the quarter from `181cr in the same quarter last year, in-line with our estimate of `215cr. The sales growth is mainly on the back of volume growth. The mens innerwear segment grew by 8.9%, womens innerwear segment grew by 22.5%, bra segment grew by 39.9% and leisure wear grew by 24.8%.

November 9, 2012

Page Industries | 2QFY2013 Result Update

Exhibit 3: Revenue came in-line

250 200 150 44.4 Revenue (LHS) 49.4 34.7 47.4 42.9 28.4 yoy growth (RHS) 60

Exhibit 4: Revenue breakup

1% 24% 40 Men Innerwear

38.5

(%)

(` cr)

23.6

Women Innerwear 6% 56% BRA Leisure Wear Speedo

100 50 0

21.9 20

126

134

111

176

181

172

154

218

220
0

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

Source: Company, Angel Research

2QFY13

13%

Source: Company, Angel Research

The raw material cost as a percent of net sales decreased by 209bp yoy from 49.7% to 47.6%, however there was an equivalent increase in the other expense. Consequently, the EBITDA margin for the quarter expanded marginally by 29.8bp yoy and came in at 20.0%, against our estimate of 20.2%. The company reported a profit of `31cr, 21.4% higher yoy from `25cr in 2QFY2012, in line with our estimate of `30cr. Exhibit 5: Margin improved marginally on yoy basis
50 40 30 20 10 20.5 20.7 15.4 EBITDA (LHS) 24.7 19.7 17.2 15.7 EBITDA Margin (RHS) 21.4 20.0 30 25 20

Exhibit 6: Profit grew by 21.4% yoy

PAT (LHS) 35 30 25 73.9 54.9 29.6 54.8 27.5 32.5 18.3 21.4 102.1 yoy growth (RHS) 120

33

31

100 80 60 40 20 0

(` cr)

(%)

(`cr)

10

15 10

26

28

17

44

36

30

24

47

44

16

16

13

28

25

20

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

17

1QFY13

Source: Company, Angel Research

Source: Company, Angel Research

November 9, 2012

2QFY13

(%)

15

20

Page Industries | 2QFY2013 Result Update

Segmental performance
Exhibit 7: Men segment
180 160 Volume yoy growth (%) 21.1 17.4 14.6 11.5 8.9 15 10 5 0 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 22.9 25 20

Exhibit 8: Women segment

45 40 Volume yoy growth (%) 34.0 40 35 30 21.6 15.0 22.5 25 20 15 10

(piece in lakh)

(piece in lakh)

140 120 100 80 60 40

35 30 25 20 15 10 12.4

24.9

129

135

123

108

156

147

32

29

31

25

39

35

20 0

5 0

5 0

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 9: Brassiere segment

8 7 63.4 Volume yoy growth (%) 70 60 42.7 33.7 36.8 39.9 50 40 30 20 10

Exhibit 10: Leisure wear

40 35 33.2 40.3 25.4 19.7 15.1 24.8 Volume yoy growth (%) 45 40 35 30 25 20 15 10

(piece in lakh)

5 4 3 2

(piece in lakh)

44.3

30 25 20 15 10

28

28

29

28

35

0 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13

0 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13

35

5 0

Source: Company, Angel Research

Source: Company, Angel Research

November 9, 2012

Page Industries | 2QFY2013 Result Update

Investment arguments Huge market size, with a fast-growing premium segment

According to industry reports, the Indian innerwear industry stood at `14,000cr (in FY2011), accounting for 9% of the domestic apparel industry. Womens innerwear segment accounts for 66% of total innerwear industry at `9,000cr; outpacing the mens innerwear segment which accounts for 34% at `5,000cr. The innerwear market is expected to grow to `43,700 by FY2020 growing at a CAGR of 13.2%. The innerwear market in India is underpenetrated with per capita spend significantly lower than other Asian peers. However, with the rising urbanization and increase in discretionary consumer spending, there lies a huge opportunity. With a market share of 21% in mens segment and 12% in womens segment, we expect Page to capitalize on the opportunity and is expected to report a revenue CAGR growth of 22.3% to 1,023cr in FY2014E.

Strong brand and wide distribution network

Page is the exclusive licensee of Jockey International Inc (USA) for manufacture and distribution of the JOCKEY brand innerwear/leisurewear for men and women in India, Sri Lanka, Bangladesh, Nepal and UAE until December 31, 2030. The royalty payment term is at 5% p.a. of factory price (net sales). With the agreement of exclusivity for 18 years of such a well renowned global brand, Page has a good visibility of growth. Above all JOCKEY is one of the most trusted and well-respected brands in the innerwear market in India with a strong brand recall. Page has a strong pan-India distribution channel across 1,200 cities, with 400 distributors, 72 Exclusive JOCKEY outlets and ~23,000 retail outlets. The revenue from mom and pop shops contributes to half of the sales followed by multi brand outlets (MBOs; 25%). Exclusive brand outlets (EBOs) - Exclusive JOCKEY outlets contribute 4% to the total sales. Exhibit 11: Revenue from different distribution channels
15% 6% 4%

25%

50%

LBO

EBO

MBO

Mom & Pop shop

Multi pupose stores

Source: Company

November 9, 2012

Page Industries | 2QFY2013 Result Update

Agreement with Speedo International Ltd

Page entered into a license and distribution agreement with M/S Speedo International Ltd, London, UK on July 1, 2011 for the exclusive right to manufacture and distribute Speedo products in India consisting of swimwear, apparel, water shorts, equipments and footwear. Speedo is the number one brand and product choice for swimmers around the world. Page launched the Speedo brand in January, 2012. The brand is now available in 410 stores including large format stores in 12 cities and two Speedo exclusive brand outlets located in Delhi and Bangalore. Swimwear is in a nascent stage in India, but with growing urbanization it has huge potential. Currently, Speedo contributes 1% to the sales and we expect this contribution to increase in the coming years.

Financials
Exhibit 12: Key assumptions
FY2013E Volume growth (%) Realization growth (%) Blended MRP/piece
Source: Angel Research

FY2014E 17.8 4.0 99

18.9 3.0 95

Exhibit 13: Change in estimates

Earlier estimates Y/E March Net sales (` cr) OPM (%) Adj. PAT (` cr) FY2013E
836 20.2 114

Revised estimates FY2013E

836 20.2 118

% chg FY2013E
0.0 3.6

FY2014E
997 20.7 138

FY2014E
1,023 20.7 149

FY2014E
2.6 7.9

Source: Company, Angel Research

Growing demand and price hike to drive top-line

Page has grown at a CAGR of 37.3% over FY2008-12. Further, we expect the revenue to increase at a CAGR of 22.3% over FY2012-14E to `1,023cr. We expect men items, women items, bra, and sports item to grow at a CAGR of 19.0%, 27.8%, 23.2% and 27.8% respectively over FY2012-14E. The company has not taken any price hike in 1HFY2013, mainly due to the inflationary condition of the economy, but it plans to take a price hike in 2HFY2013 in order to protect its margins.

November 9, 2012

Page Industries | 2QFY2013 Result Update

Exhibit 14: Healthy revenue growth

1200 1000 32.4 800 33.3 44.8 683 492 339 255 10 0 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 22.3 22.4 Revenue (LHS) Revenue growth (RHS) 1023 39.0 836 50 40

Exhibit 15: Segmental breakup

600 500 400 Men Items Women Items Bra Sports Items Others

( ` cr)

(` cr)

(%)

389

30 20

461

551
259 204 159 110 53 83 39 FY2012 14 107 48 16 FY2014E 135 59 18

600 400 200 0

300 200 100 0 FY2011

292
25

11

FY2013E

Source: Company, Angel Research

Source: Company, Angel Research

Margin to improve with stabilizing raw material cost

With the softening in cotton prices, we expect the companys operating margin to expand by 114bp over FY2012-14E to 20.6% in FY2014E. Consequently we expect the profit to grow at a CAGR of 28.5% over FY2012-14E to `149cr in FY2014E. Exhibit 16: Margin to improve with cooling off of RM prices
250 20.0 200 150 100 50 19.4 18.5 19.5 20.2 19 EBITDA (LHS) EBITDA Margin (RHS) 20.6 21

Exhibit 17: PAT margin to improve going forward

160 140 120 13.2 PAT (LHS) PATM (RHS) 14.1 14 13 11.9 11.7 12 11 32 FY2009 40 FY2010 59 FY2011 90 FY2012 118 FY2013E 149 10 FY2014E 14.6 15

(` cr)

(` cr)

(%)

80 60 40

17

133

169

211

51

66

91

20 15 0

0 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 18: Relative valuation

Company Page Lovable Lingerie* Year end FY2013E FY2014E FY2013E FY2014E Mcap (` cr) 3,744 3,744 608 608 Sales (` cr) 836 1,023 165 204 OPM (%) 20.2 20.6 17.2 17.4 PAT (` cr) 118 149 23 28 EPS (`) 105.6 133.4 13.9 16.5 RoE (%) 59.3 53.2 13.7 14.4 P/E (x) 31.8 25.2 26.0 21.8 P/BV (x) 16.2 11.4 3.4 3.2 EV/Sales (x) 4.5 3.7 3.1 2.5 EV/ EBITDA (x) 22.5 17.9 17.8 14.4

Source: Company, Angel Research; * Bloomberg estimates

November 9, 2012

(%)

100

12.4

Page Industries | 2QFY2013 Result Update

Outlook and valuation: Considering the companys dominant presence in a fastgrowing market, strong brand recall, consistent financial performance and high dividend payout, we expect Page Industries to get re-rated. Expecting the companys revenue and profit to grow at a CAGR of 22.3% and 28.5% FY201214E over to `1,023cr and `149cr respectively in FY2014E and considering its robust RoE profile, we have assigned a P/E multiple of 27x for its FY2014E earnings. The stock is currently trading at a PE of 25.2x FY2014E earnings. We upgrade the stock to Accumulate with a target price of `3,602, valuing the stock at 27x FY2014E earnings. Exhibit 19: One-year forward P/E band
4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

(`)

Dec-09

Mar-11

Aug-11

Apr-08

Jul-09

Feb-09

Oct-10

May-10

Price (`)
Source: Company, Angel Research

15x

20x

25x

30x

Concerns
Competition from other players: An aggressive push by the existing branded, domestic and global players could affect the companys performance. However, considering that a majority of the market remains untapped and is growing at a fast pace, we believe there is enough room for growth. Fluctuations in raw-material prices: Any fluctuation in raw-material prices,
especially cotton, can lead to margin compression, as the company may not be able to pass on the entire increase to the end-user.

November 9, 2012

Nov-12

Sep-08

Jan-12

Jun-12

Page Industries | 2QFY2013 Result Update

Company background
Page is the exclusive licensee of Jockey International Inc. (USA) for manufacture and distribution of the JOCKEY brand innerwear/leisurewear for men and women in India, Sri Lanka, Bangladesh, Nepal and UAE. Page Industries is also the exclusive licensee of Speedo International Ltd for the manufacture, marketing and distribution of the Speedo brand in India. As of end July 2012, the companys workforce numbered 13,000 people with manufacturing operations spread over ten plants in Bangalore. Page has a strong pan India distribution channel across 1,200 cities, with 400 distributors, 72 Exclusive JOCKEY outlets and ~23,000 retail outlets. Speedo brand is also available in 410 stores including large format stores in 12 cities and two Speedo exclusive brand outlets located in Delhi and Bangalore.

November 9, 2012

Page Industries | 2QFY2013 Result Update

Profit and loss statement

Y/E Mar. (` cr)
Net Sales Other operating income Total operating income % chg Net Raw Materials % chg Power and Fuel % chg Personnel % chg Other % chg Total Expenditure EBITDA % chg (% of Net Sales) Depreciation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of Net Sales) Recurring PBT % chg PBT (reported) Tax (% of PBT) PAT (reported) Extraordinary Expense/(Inc.) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg

FY2010
339 339 33.3 154 30.4 3 30.9 58 35.4 59 44.7 274 66 29.1 19.4 9 57 30.2 16.7 3 5 1.4 54 32.7 59 19 32.3 40 0 40 25.2 11.7 35.5 35.5 25.2

FY2011
492 492 44.8 225 45.7 4 59.0 90 54.3 82 39.3 400 91 38.7 18.5 10 81 43.3 16.5 5 12 2.5 76 41.5 88 29 33.1 59 0 59 47.9 11.9 52.5 52.5 47.9

FY2012
683 683 39.0 329 46.5 5 20.9 114 26.9 102 24.6 550 133 46.2 19.5 11 123 50.8 17.9 7 18 2.7 116 52.4 134 44 32.8 90 0 90 53.9 13.2 80.8 80.8 53.9

FY2013E
836 836 22.3 401 21.8 8 58.5 134 17.4 124 21.6 667 169 26.6 20.2 13 155 26.7 18.6 6 23 2.8 149 28.7 173 55 31.8 118 0 118 30.6 14.1 105.6 105.6 30.6

FY2014E
1,023 1,023 22.4 486 21.3 10 22.4 164 22.4 151 22.4 812 211 25.0 20.6 16 195 25.6 19.1 5 29 2.8 190 27.0 218 69 31.8 149 0 149 26.4 14.6 133.4 133.4 26.4

November 9, 2012

10

Page Industries | 2QFY2013 Result Update

Balance sheet
Y/E Mar. (` cr) SOURCES OF FUNDS Equity Share Capital Reserves& Surplus Shareholders Funds Total Loans Other Long Term Liabilities Long Term Provisions Deferred Tax (Net) Total liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Long Term Loans and advances Other Non-current asset Current Assets Cash Loans & Advances Inventory Debtors Other current assets Current liabilities Net Current Assets Misc. Exp. not written off Total Assets
101 24 78 5 3 134 3 16 95 20 64 70 156 126 33 93 1 3 20 2 219 3 26 165 26 77 143 262 150 43 107 3 2 27 1 231 3 12 173 44 108 123 263 186 56 130 3 2 33 1 285 9 15 206 55 124 161 329 231 72 159 3 2 40 1 367 19 26 255 67 151 216 421 11 88 99 55 2 156 11 113 124 114 19 2 3 262 11 155 166 64 28 2 4 263 11 220 232 58 33 2 5 329 11 317 328 52 33 2 5 421

FY2010

FY2011

FY2012

FY2013E

FY2014E

November 9, 2012

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Page Industries | 2QFY2013 Result Update

Cash flow statement

Y/E Mar. (` cr)
Profit before tax Depreciation Change in Working Capital Direct taxes paid Others Cash Flow from Operations (Inc.)/Dec. in Fixed Assets (Inc.)/Dec. in Investments

FY2010
59 9 (19) (19) 0 30 (25) 2 1 (21) 13 (27) (2) (16) (7) 10 3

FY2011
88 10 (73) (29) 4 (0) (21) 0 (22) 16 (27) 60 (34) 1 27 (0) 3 3

FY2012
134 11 20 (44) 2 123 (26) 1 (6) 5 (25) (50) (48) 1 (97) 1 3 3

FY2013E
173 13 (31) (55) (23) 77 (36) (6) 30 (12) (6) (52) (58) 6 3 9

FY2014E
218 16 (45) (69) (29) 91 (45) (7) 29 (23) (6) (52) (58) 10 9 19

(Incr)/Decr In LT loans & adv.

Others 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

November 9, 2012

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Page Industries | 2QFY2013 Result Update

Key ratios
Y/E Mar. Valuation Ratio (x)
P/E (on FDEPS) P/CEPS P/BV EV/Net sales EV/EBITDA EV / Total Assets 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 (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset TO (Gross Block) Inventory / Net sales (days) Receivables (days) Payables (days) Working capital cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Int. Coverage (EBIT/ Int.) 0.5 0.7 19.1 0.9 1.2 15.6 0.4 0.4 18.4 0.2 0.3 25.6 0.1 0.1 35.8 4.0 87 20 97 62 4.3 96 17 64 77 4.9 90 19 61 70 5.0 83 24 68 59 4.9 82 24 68 62 40.1 46.4 42.6 39.3 41.0 52.6 47.2 48.5 62.3 53.1 55.1 59.3 52.7 55.5 53.2 16.7 0.7 2.8 31.4 4.2 0.5 44.9 16.5 0.7 2.5 27.4 4.1 0.9 47.9 17.9 0.7 2.7 32.6 5.0 0.4 42.4 18.6 0.7 3.0 37.6 6.8 0.2 43.8 19.1 0.7 2.9 37.8 6.8 0.1 40.7 35.5 35.5 43.6 21.0 88.8 52.5 52.5 61.3 26.0 111.0 80.8 80.8 90.4 37.0 148.6 105.6 105.6 117.6 40.0 207.6 133.4 133.4 147.7 40.0 294.4 94.5 77.0 37.8 11.2 57.7 24.7 63.9 54.7 30.2 7.8 42.3 14.8 41.5 37.1 22.6 5.6 28.5 14.6 31.8 28.5 16.2 4.5 22.5 11.7 25.2 22.7 11.4 3.7 17.9 9.1

FY2010

FY2011

FY2012

FY2013E

FY2014E

November 9, 2012

13

Page Industries | 2QFY2013 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

Page Industries 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%)

November 9, 2012

14