Vous êtes sur la page 1sur 13

2QFY2013 Result Update | IT

October 29, 2012

KPIT Cummins
Performance Highlights
(` cr) Net revenue EBITDA EBITDA margin (%) PAT 2QFY13 567 95 16.7 41 1QFY13 538 81 15.1 49 % chg (qoq) 5.4 16.4 157bp (16.4) 2QFY12 325 44 13.6 36 % chg (yoy) 74.5 113.1 301bp 11.5

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 IT 2,159 534 0.6 142/68 125,465 2 18,636 5,666 KPIT.BO KPIT@IN

`121 `132
12 Months

Source: Company, Angel Research

For 2QFY2013, KPIT Cummins Infosystems (KPIT) reported a strong operational set of results. For FY2013, the management has maintained its guidance of 32-35% yoy growth in USD revenue, which is 2.5x more than Nasscoms guidance of 11-14% growth and includes ~US$45mn inorganic revenue from Systime. We maintain our Accumulate recommendation on the stock. Quarterly highlights: For 2QFY2013, KPIT reported a revenue of US$103mn, up 5.5% qoq. The overall volume growth stood at 4% qoq. In INR terms, the revenue came in at `567cr, up 5.4% qoq. The EBITDA and EBIT margins increased by 157bp and 166bp qoq to 16.7% and 14.6%, respectively, aided by improvement in Systime margins from 5% in 4QFY2012 to 14% in 2QFY2013 and a qoq decline in general and administrative (G&A) costs. The PAT came in at `41cr, down 16.4% qoq, negatively impacted by forex loss of `21cr. The management indicated that forex losses are expected to decline going forward at prevailing currency rates. Outlook and valuation: KPITs management has maintained its FY2013 USD revenue growth of a whopping 32-35% yoy, which is the strongest amongst its peers, even on the back of a strong 40% yoy revenue growth recorded in FY2012 because of the companys strengthening deal pipeline as well as incremental revenues from Systime. On the PAT front also, the company has maintained its guidance of 19-24% yoy growth to `173cr-180cr. The company is growing ahead of other IT companies in terms of revenues; and on the operational front, the companys performance has been improving since the last couple of quarters. Hence, we expect the companys revenue to post a CAGR of 21.2% and 24.3% in USD and INR terms, respectively, over FY2012-14E. On the EBITDA and PAT fronts, the company is expected to post a 26.2% and 28.1% CAGR respectively over FY2012-14E. We value the company at 11x FY2014E EPS of `12.0, which gives us a target price of `132. We maintain our Accumulate rating on the stock. Key financials (Consolidated)
Y/E March (` cr) Net sales % chg Net profit % chg EBITDA margin (%) EPS (`)* P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) FY2010 732 (7.8) 86 30.3 22.1 10.8 11.1 2.5 22.2 26.0 3.0 13.4 FY2011 1,007 37.6 95 10.6 15.1 5.7 21.2 1.6 15.7 15.5 2.0 13.4 FY2012 1,500 49.0 135 42.5 14.5 8.0 15.0 3.0 19.0 17.3 1.5 10.2 FY2013E 2,195 46.3 189 39.7 15.5 10.7 11.3 2.4 21.0 24.7 1.0 6.3 FY2014E 2,317 5.6 222 17.4 15.0 12.0 10.0 1.9 19.8 21.4 0.9 5.8

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 26.2 13.6 26.7 33.5

Abs. (%) Sensex KPIT Cummins

3m 10.7

1yr 4.7

3yr 14.4 209.1

(0.2) 48.3

Ankita Somani
022-3935 7800 Ext: 6819 ankita.somani@angelbroking.com

Source: Company, Angel Research; Note: *FY2010 numbers not adjusted for bonus

Please refer to important disclosures at the end of this report

KPIT Cummins Infosystems | 2QFY2013 Result Update

Exhibit 1: 2QFY2013 performance (Consolidated)


Y/E March (` cr) Net revenue Cost of revenue Gross profit SGA expenses EBITDA Depreciation EBIT Interest expense Other income Exceptional item PBT Income tax PAT Minority interest Share in profit of ass. Adj. PAT EPS EBITDA margin (%) EBIT margin (%) PAT margin (%)
Source: Company, Angel Research

2QFY13 567 370 197 102 95 11 83 3 (19) 5 66 19 47 1 1 41 2.5 16.7 14.6 7.4

1QFY13 538 351 188 106 81 11 70 4 3 3 72 18 54 1 (1) 49 2.8 15.1 13.0 9.0

% chg (qoq) 5.4 5.6 4.9 (3.8) 16.4 0.8 18.9 (2.8)

2QFY12 325 213 112 67 44 12 33 1 11 -

% chg (yoy) 74.5 73.6 76.2 51.9 113.1 (1.0) 153.2 168.0

1HFY13 1,105 721 385 209 176 23 153 7 (16) 8

1HFY12 641 426 216 131 84 21 63 2 13 74 16 58 0 3 61 3.3 13.1 9.8 9.3

% chg (yoy) 72.4 69.4 78.5 58.9 109.0 8.5 142.4 201.2

(8.4) 3.6 (12.5)

43 9 34 0 3

55.2 118.3 38.8

138 38 100 2 (1)

86.5 137.1 72.7 482.2 47.4 58.9 278bp 400bp (106)bp

(16.4) (11.0) 157bp 166bp (156)bp

36 2.0 13.6 10.1 10.9

11.5 24.3 301bp 455bp (344)bp

89 5.3 15.9 13.8 8.2

Exhibit 2: Actual vs Angel estimates


(` cr) Net revenue EBITDA margin (%) PAT
Source: Company, Angel Research

Estimate 554 16.7 50

Actual 567 16.7 41

Var. (% ) 2.5 (4)bp (18.5)

Robust performance
For 2QFY2013, KPIT reported a revenue growth of 5.5% qoq with revenue coming in at US$103.4mn. Onsite revenues grew by 7.6% and the volume growth onsite was ~9%. Offshore revenues grew by 2.9% and the offshore volume growth was ~3%. The overall volume growth stood at 4% qoq and revenue growth in constant currency (CC) terms came in at ~6% qoq. In INR terms, the revenue came in at `567cr, up 5.4% qoq.

October 29, 2012

KPIT Cummins Infosystems | 2QFY2013 Result Update

Exhibit 3: Trend in revenue growth (qoq)


110 100 90
(US$ mn)

29.9 103.4 95.4 98.1

35 30 25
(%)

80 70 60 50 40 0.4 2QFY12 3QFY12 4QFY12 1QFY13 qoq growth (%) 2QFY13 Revenue (US$ mn) 70.4 73.4 4.3 5.5

20 15 10 2.8 5 0

Source: Company, Angel Research

KPITs revenue performance came on the back of a modest growth across all its major strategic business units (SBUs). IES emerges as the companys primary growth driver: The integrated enterprise solutions (IES) SBU (contributed 45.9% to revenue) reported a robust 9.1% qoq growth in USD revenue, aided by revenue from Systime. The company is witnessing increasing traction for Oracles and JD Edwards offerings in the US market, driven by clients focus on leveraging and optimizing disparate systems within the enterprise. In emerging markets, the company is getting spends from clients preference towards evaluating and adopting cloud, analytics, mobility and social media solutions. The management indicated that a major upgrade rolled out in JD Edwards will drive demand for Systime services for at least a period of 18-24 months, with clients going for either new implementations or technology upgrades. Also, there are some attractive accounts at Systime which present crossselling opportunity to KPIT post the acquisition. The company managed to increase revenue traction from Systime to US$17mn from US$13mn in 4QFY2012. Also, the EBITDA margin of Systime moved up from 5% in 4QFY2012 to 14% in 2QFY2013. Auto and engineering SBU continues its momentum: The auto and engineering SBU (contributed 24.4% to revenue) posted an 8.6% qoq growth in USD revenue, with revenue coming in at US$25mn. In this SBU, demand for practices such as power train, infotainment, mechanical engineering and design services, in-vehicle networks and hybrid technologies was spread across geographies. The EBITDA margin of this SBU was 23%+ during 2QFY2013. SAP SBU sluggish: The SAP SBU (contributed 29.7% to revenue) registered a 1.9% qoq decline in its revenue. The EBITDA margin at SAP came down to ~7% from 10% in 4QFY2012 on account of investments in HANA, mobility and success factors, and increase in the bench during the quarter. The management indicated that normal utilization levels will return in four to five months. KPITs management also indicated that the company has a strong order pipeline in this SBU for solutions from utilities as well as auto industry verticals.

October 29, 2012

KPIT Cummins Infosystems | 2QFY2013 Result Update

Exhibit 4: Revenue growth (SBU wise)


SBU Integrated enterprise solutions Auto and engineering SAP
Source: Company, Angel Research

% of revenue 45.9 24.4 29.7

% growth (qoq) 9.1 8.6 (1.9)

% growth (yoy) 75.3 30.1 42.5

The companys anchor vertical, automotive and transportation (contributed 38.8% to revenue) registered a revenue growth of 3.3% qoq during the quarter. The company is witnessing modest traction in this vertical as automobile companies try to improve efficiency, safety and comfort as well as due to regulatory standards. Also, increased demand for smaller vehicles, especially in India and China, is one of the drivers of the building deal pipeline for this vertical. The energy and utilities industry vertical emerged as the primary growth driver for the company with revenues growing by 17.5% qoq, as SAP related work has yielded healthy traction in the recent quarters (quarterly revenue run-rate has doubled in the last four quarters in energy and utilities).

Exhibit 5: Revenue growth (Vertical wise)


Service verticals Automotive and transportation Manufacturing Energy and utilities Others
Source: Company, Angel Research

% of revenue 38.8 32.4 15.3 13.5

% growth (qoq) 3.3 4.2 17.5 3.0

% growth (yoy) 38.4 54.0 121.2 11.7

Geography wise, revenue from rest of world grew by 32.6% qoq. Revenue from Europe declined by 12.6% qoq, out of which ~6% of the decline was an impact of cross currency movement.

Exhibit 6: Revenue growth (Geography wise)


Geography U.S. Europe Rest of the World
Source: Company, Angel Research

% of revenue 76.4 12.1 11.6

% growth (qoq) 5.7 (12.6) 32.6

% growth (yoy) 64.7 (11.8) 44.5

Hiring and utilization


During the quarter, KPITs total employee base witnessed a net addition of 238 employees, taking its total employee base to 8,111. The management indicated that in FY2013, the company is on track of its guidance of hiring ~1,000 employees; it has already hired 500+ employees in 1HFY2013.

October 29, 2012

KPIT Cummins Infosystems | 2QFY2013 Result Update

Exhibit 7: Employee addition


Particulars Net addition Development Sales and support Total Total employees Development Sales and support Total 6,018 526 6,544 6,178 529 6,707 (45) 5 (40) 160 3 163 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 229 9 238 7,447 664 8,111

893 119 1,012 7,071 648 7,719

147 7 154 7,218 655 7,873

Source: Company, Angel Research

Onsite utilization declined marginally by 25bp qoq to 94.5%, while offshore utilization moved up by 62bp qoq to 74.7% during the quarter.

Exhibit 8: Trend in utilization


100 90 80
(%)

91.3

94.5 90.6

94.7

94.5

70 60 50

72.8

71.9

74.6

74.1

74.7

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

Onsite utilisation
Source: Company, Angel Research

Offshore utilisation

Margins decline
On the operational front, KPITs EBITDA and EBIT margin increased by 157bp and 166bp qoq to 16.7% and 14.6%, respectively, aided by improvement in Systime margins from 5% in 4QFY2012 to 14% in 2QFY2013. G&A costs declined during the quarter by 150bp qoq (G&A costs currently stands at 11.2% to revenue as against 12.7% in 1QFY2013). The management indicated that they expect to get 15.5%+ margins in FY2013.

October 29, 2012

KPIT Cummins Infosystems | 2QFY2013 Result Update

Exhibit 9: Margin profile


45 34.4 34.2 33.6 34.9 34.7

35
(%)

25 13.6 15.3 15.8 13.7 4QFY12 EBITDA margin 15.1 13.0 1QFY13 2QFY13 EBIT margin 16.7 14.6 11.8 3QFY12

15

10.1 2QFY12

Gross margin
Source: Company, Angel Research

Client pyramid
KPIT added four new clients during 2QFY2013. The total active client base of the company stands at 176 as of 2QFY2013 as against 172 in 1QFY2013. The USD revenue from Cummins grew merely by 1.0% qoq to US$20.4mn. The management foresees revenue from the Cummins account to remain soft in the near term. The revenue from top 10 clients excluding Cummins grew by 8.0% qoq. Non-top10 clients revenue grew 6.1% qoq.

Exhibit 10: Client metrics


(% of revenue) Top client-Cummins Top-10 client billing No. of customers added No. of active customers Customers with run rate >US$1mn
Source: Company, Angel Research

2QFY12 22.6 48.1 4 163 51

3QFY12 23.9 47.1 2 165 54

4QFY12 19.5 42.2 4 169 59

1QFY13 20.6 44.0 3 172 65

2QFY13 19.7 43.7 4 176 69

Outlook and valuation


KPITs management has maintained its FY2013 USD revenue growth of a whopping 32-35% yoy (US$408mn-418mn), which is the strongest amongst its peers, even on the back of a strong 40% yoy revenue growth recorded in FY2012 because of the companys strengthening deal pipeline as well as incremental revenues from Systime. This guidance includes ~US$45mn of inorganic revenue in FY2013 from Systime. On the PAT front also, the company has maintained its guidance of 19-24% yoy growth to `173cr-180cr. On the operating margin front, the management indicated that FY2013 margins are expected to be 15.5% plus. The company has already reached 16.7% EBITDA margin in 2QFY2013 even after absorbing the negative impact of the wage hike. So even if the currency movement is unfavorable for the rest of the year, we believe the company will most likely reach its margin target. The company is growing ahead of other IT companies in terms of its revenue; and on the operational front, the companys performance has been improving since the last couple of quarters. Hence, we expect the companys

October 29, 2012

KPIT Cummins Infosystems | 2QFY2013 Result Update

revenue to post a CAGR of 21.2% and 24.3% in USD and INR terms, respectively, over FY2012-14E. On the EBITDA and PAT fronts, the company is expected to post a 26.2% and 28.1% CAGR over FY2012-14E. We value the company at 11x FY2014E EPS of `12.0, which gives us a target price of `132. We maintain our Accumulate rating on the stock.

Exhibit 11: Key assumptions


FY2013 Revenue growth-USD terms (%) USD-INR rate Revenue growth-INR terms (%) EBITDA margin (%) Tax rate (%) EPS growth (%)
Source: Company, Angel Research

FY2014 10.6 51.0 5.6 15.0 26.0 12.3

32.9 53.4 46.3 15.5 26.1 33.7

Exhibit 12: One-year forward PE


300 250 200

(`)

150 100 50 0

Oct-06

Oct-07

Oct-08

Oct-09

Oct-10

Oct-11

Price
Source: Company, Angel Research

26x

20x

14x

8x

2x

October 29, 2012

Oct-12

Apr-06

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Apr-12

KPIT Cummins Infosystems | 2QFY2013 Result Update

Exhibit 13: Recommendation summary


Company HCL Tech Hexaware Infosys Infotech Entp. KPIT Cummins Mahindra Satyam MindTree Mphasis NIIT^ Persistent TCS Tech Mahindra Wipro Reco. Accumulate Buy Accumulate Accumulate Accumulate Neutral Accumulate Neutral Accumulate Accumulate Accumulate Accumulate Buy CMP (`) 610 110 2,334 191 121 107 661 383 33 460 1,308 928 345 Tgt. price (`) 648 140 2,573 202 132 110 747 392 36 485 1,410 1046 421 Upside (%) 6.2 26.6 10.2 5.8 9.4 2.8 13.0 2.3 7.6 5.4 7.8 12.7 22.0 FY2014E EBITDA (%) 18.1 21.4 30.4 17.3 15.0 18.4 17.7 16.9 11.0 24.6 29.1 17.1 19.3 FY2014E P/E (x) 12.7 9.1 13.6 9.5 10.0 10.7 8.9 10.3 5.2 8.5 17.1 9.3 12.3 FY2011-14E 10.1 10.9 5.6 11.6 14.5 (0.6) 11.6 (0.5) (1.5) 15.1 12.0 4.2 7.3 FY2014E 1.5 1.2 2.6 0.6 0.9 1.1 0.8 0.8 0.3 1.0 3.6 1.7 1.3 FY2014E RoE (%) 22.0 23.9 23.1 14.0 19.8 22.2 19.7 12.6 14.3 17.9 29.1 20.5 17.9 EPS CAGR (%) EV/Sales (x)

Source: Company, Angel Research; Note: ^Valued on SOTP basis

Company Background
KPIT Cummins (KPIT), a mid-tier Indian IT company, specializes in the manufacturing segment, with a focus on automotive and industrial solutions and services. The company focuses on three areas of solutions enterprise services, auto and engineering and SAP. KPIT has been growing strongly, both organically and inorganically. The company has successfully acquired eight companies in eight years, which scaled up KPIT's revenue many fold.

October 29, 2012

KPIT Cummins Infosystems | 2QFY2013 Result Update

Profit and Loss statement (Consolidated)


Y/E March (` cr) Net sales Cost of revenue % of net sales Gross profit % of net sales S&M expenses % of net sales G&A expenses % of net sales EBITDA % of net sales Depreciation EBIT Interest expense, net Other income, net Exceptional item Profit before tax Provision for tax % of PBT PAT Minority interest Share in profit of ass. Adj. PAT EPS (`) FY2010* 732 409 55.9 323 44.1 66 9.1 95 13.0 161 22.1 31 131 3 (25) 103 17 16.5 86 86 10.8 FY2011 1,007 644 64.0 363 36.0 76 7.6 134 13.3 152 15.1 41 111 3 3 110 15 14.0 95 95 5.7 FY2012 1,500 993 66.2 507 33.8 112 7.4 177 11.8 218 14.5 44 174 8 13 10 189 44 23.1 145 3 3 135 8.0 FY2013E 2,195 1,443 65.8 751 34.2 155 7.0 257 11.7 340 15.5 51 289 13 (11) 8 273 71 26.1 202 4 (1) 189 10.7 FY2014E 2,317 1,544 66.6 773 33.4 162 7.0 264 11.4 347 15.0 56 291 10 23 305 79 26.0 226 4 222 12.0

Note: *FY2010 numbers not adjusted for bonus

October 29, 2012

KPIT Cummins Infosystems | 2QFY2013 Result Update

Balance sheet (Consolidated)


Y/E March (` cr) Liabilities Share capital Application money ESOP outstanding Preferential shares Reserves and surplus Share premium Total shareholders funds Secured loans Unsecured loans Total debt Minority interest Deferred tax liability, net Other liabilities Long term provisions Total liabilities 16 0 2 370 387 111 111 5 503 251 16 0 2 458 128 603 111 111 6 5 718 327 36 0 677 713 82 140 222 33 (3) 26 10 1,001 399 36 0 863 899 82 120 202 33 26 10 1,170 474 36 0 1,081 1,117 82 100 182 33 26 5 1,363 544 FY2010 FY2011 FY2012 FY2013E FY2014E

Assets
Gross block - fixed assets

Accumulated depreciation
Net block

128
124

169
158

213
185

265
209

320
224

Capital work-in-progress
Goodwill

29
95

3
130

3
362

3
362

3
362

Investments
Loans and advances Current assets Sundry debtors Cash and bank balance Loans and advances Other current assets Less:- Current liabilities Sundry creditors Other liabilities Provisions Net current assets Total assets

75
139 105 68 64 43 23 181 503

76 229 208 33 73 94 76 20 352 718

22
62 438 147 60 53 176 106 49 367 1,001

35
62 487 227 88 53 198 86 72 499 1,170

50
62 514 342 104 53 212 63 76 662 1,363

October 29, 2012

10

KPIT Cummins Infosystems | 2QFY2013 Result Update

Cash flow statement (Consolidated)


Y/E March (` cr) Pretax profit from operations Depreciation Pre tax cash from operations Other income/prior period ad Net cash from operations Tax Cash profits (Inc)/dec in Current assets Current liabilities Net trade working capital Cash flow from operating activities (Inc)/dec in fixed assets (Inc)/dec in investments Inc/(dec) in deferred tax liability (Inc)/dec in intangibles Inc/(dec) in minority interest Inc/(dec) in other non-current assets 16 (151) (135) (18) (38) (75) (1) (67) (0) 6 (128) 60 (68) 68 (76) 75 0 (35) 1 (34) (217) 141 (75) 107 (72) (22) (8) (232) 32 34 (77) 25 (52) 193 (75) (13) 3 (44) (5) (49) 232 (70) (15) (5) FY2010 128 31 159 (25) 133 (17) 117 FY2011 FY2012E FY2013E FY2014E 108 41 149 3 151 (15) 136 169 44 214 13 226 (44) 183 276 51 327 (11) 316 (71) 245 281 56 337 23 361 (79) 281

Cash flow from investing activities


Inc/(dec) in debt

(174)
(8)

(68)
(18)

(268)
129

(86)
(20)

(90)
(20)

Inc/(dec) in equity/premium
Dividends

145
(6)

128
(7)

(22)
(7)

(7)

(7)

Cash flow from financing activities


Cash generated/(utilized)

131
(62)

104
103

100
(61)

(27)
80

(27)
115

Cash at start of the year


Cash at end of the year

167
105

105
208

208
147

147
227

227
342

October 29, 2012

11

KPIT Cummins Infosystems | 2QFY2013 Result Update

Key ratios
Y/E March Valuation ratio (x) P/E (on FDEPS) P/CEPS P/BVPS Dividend yield (%) EV/Sales EV/EBITDA EV/Total assets Per share data (`) EPS Cash EPS Dividend Book value Dupont analysis Tax retention ratio (PAT/PBT) Cost of debt (PBT/EBIT) EBIT margin (EBIT/Sales) Asset turnover ratio (Sales/Assets) Leverage ratio (Assets/Equity) Operating ROE Return ratios (%) RoCE (pre-tax) Angel RoIC RoE Turnover ratios (x) Asset turnover (fixed assets) Receivables days Payable days 1.9 79 67 1.6 67 45 1.7 81 50 2.0 81 50 1.8 81 50 26.0 47.6 22.2 15.5 29.2 15.7 17.3 35.3 19.0 24.7 49.7 21.0 21.4 44.2 19.8 0.8 0.8 0.2 1.5 1.3 22.2 0.9 1.0 0.1 1.4 1.2 15.7 0.7 1.1 0.1 1.5 1.4 19.0 0.7 0.9 0.1 1.9 1.3 21.0 0.7 1.0 0.1 1.7 1.2 19.8 10.8 14.7 -0.9 48.8 5.7 16.7 -0.9 73.9 8.0 10.6 -0.9 39.8 10.7 14.1 -0.9 50.2 12.0 15.7 -0.9 62.4 11.1 8.2 2.5 (0.7) 3.0 13.4 4.3 21.2 7.2 1.6 (0.7) 2.0 13.4 2.8 15.0 11.4 3.0 (0.7) 1.5 10.2 2.2 11.3 8.5 2.4 (0.7) 1.0 6.3 1.8 10.0 7.7 1.9 (0.7) 0.9 5.8 1.5 FY2010 FY2011 FY2012E FY2013E FY2014E

October 29, 2012

12

KPIT Cummins Infosystems | 2QFY2013 Result Update

Research Team Tel: 022 - 3935 7800

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

KPIT Cummins 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%)

October 29, 2012

13

Vous aimerez peut-être aussi