1QFY2014 Result Update | Infrastructure

August 8, 2013

NCC
Performance Highlights
Quarterly Highlights Standalone
Y/E March (` cr) Net sales Operating profit Net profit 1QFY14 1,379 108 11 1QFY13 1,472 117 17 4QFY13 1,741 157 27 % chg (yoy) (6.3) (7.2) (36.6) % chg (qoq) (20.8) (31.0) (61.3)

BUY
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 Infrastructure 488 2,455 2.0 61/18 217,789 2 18,665 5,519 NGCN.BO NJCC@IN

`19 `27
12 Months

Source: Company, Angel Research

NCC posted a poor set of numbers for 1QFY2014, below our and street expectations. The poor performance in slow execution and lower profitability was primarily due to slower order inflows and higher interest expense during the quarter. The current outstanding order book of NCC stands at `18,098cr
(3.2x trailing revenues) as of 1QFY2014, indicating a decline of 12% yoy. Higher interest cost dents profitability: On the top-line front, NCC reported a decline of 6.3% yoy to `1,379cr, which was significantly lower than our estimate of `1,511cr. This is mainly due to (a) slower-than-expected execution in some projects and (b) a depleting order book. On the EBITDAM front, the companys

EBITDA margins stood at 7.9% (down 116bp sequentially) and was slightly below our estimate of 8.0%. Interest cost came in at `97cr a growth of 4.3% yoy. At the bottom-line level, NCC reported a PAT of `11cr (our estimate was of `18cr) in 1QFY2014, indicating a decline of 36.6% yoy. This was mainly due to lower-than-expected revenue performance, higher tax rate (39%) and high interest cost for the quarter.
Outlook and valuation: During the quarter, NCC has increased its debt by `350cr to `2,576cr. However the company is in process of reducing its debt through stake sale in two of its road BOT projects (Western UP tollways and Bangalore Elavated expressway), continued monetization of its land bank and completion of stake sale in the Himachal Sorang project (within nine to ten months). The company has already signed a term sheet with an investor for one of its road BOT project (Western UP tollways). The stock currently trades at a PE of 7.7x and 7.2x (including subsidiaries valuation) our FY2014 and FY2015 EPS estimates. Further, on account of the stake sale initiated by the company in some of its projects and decline in its stock price, we continue to maintain our Buy rating on the stock with a target price of `27.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 20.3 9.0 38.2 32.6

Abs. (%) Sensex NCC

3m (6.2)

1yr 6.0

3yr 2.9 (88.5)

(43.2) (52.8)

Key financials (Standalone)

Y/E March (` cr) Net Sales % chg Adj.Net Profit % chg EBITDA (%) FDEPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) OB/sales(x) Order inflows %chg FY2012 5,250 3.5 36.0 (78.0) 7.6 1.4 13.3 0.2 1.5 6.6 0.5 6.6 3.3 10,118 48.2 FY2013 5,725 9.0 62.7 74.2 8.2 2.4 7.6 0.2 2.6 8.2 0.4 5.2 2.5 4,813 (52.4) FY2014E 6,044 5.6 61.8 (1.3) 8.0 2.4 7.7 0.2 2.5 8.2 0.5 6.0 2.6 6,349 31.9 FY2015E 6,533 8.1 67.6 9.3 8.0 2.6 7.0 0.2 2.7 8.3 0.5 6.3 2.4 7,845 23.6

Viral Shah
022-39357800 Ext: 6842 viralk.shah@angelbroking.com

Source: Company, Angel Research; Note: CMP as of August 7, 2013

Please refer to important disclosures at the end of this report

NCC | 1QFY2014 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

1QFY14 1379 1271 108 7.9 97 22 29 0 17 6.7 11 0.8 0.4

1QFY13 1472 1355 117 7.9 93 22.5 23.5 0 25 7.9 17 1.1 0.6

4QFY13 1741 1584 157 9.0 113 23 29 0 50 22.5 27 1.6 1.1

% Chg (yoy) (6.3) (6.2) (7.2) (7)bp 4.3 (0.3) 21.5 0 (29.7) (15.3) (36.6) (37)bp (36.6)

% Chg (qoq) (20.8) (19.8) (31.0) (116)bp (14.1) (2.3) (1.2) 0 (65.3) (70.1) (61.3) (80)bp (61.3)

FY2013 5725 5254 471 8.2 407 92 126 0 98 35.1 63 1.1 2.4

FY2012 5250 4851 399 7.6 384 83 121 0 53 16.9 36 0.7 1.4

% Chg 9.0 8.3 18.0 62bp 6.0 10.9 4.4 85.5 107.0 75.4 41bp 75.4

Exhibit 2: 1QFY2014 Actual vs Estimates

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

Estimates 1,511 121 102 9 18

Actual 1,379 108 97 7 11

Variation (%) (8.7) (10.4) (4.3) (28.6) (42.4)

Execution continues to disappoint

On the top-line front, NCC reported a decline of 6.3% yoy to `1,379cr, which was significant lower than our estimate of `1,511cr. This is mainly due to (a) slower-than-expected execution in some projects and (b) a depleting order book.
During the quarter, NCC has increased its debt by `350cr to `2,576cr mainly towards working capital utilization for its under-construction projects. However the company is in process of reducing its debt through stake sale in two of its road BOT projects (Western UP tollways and Bangalore Elavated expressway), continued monetization of its land bank and completion of stake sale in the Himachal Sorang project.

August 8, 2013

NCC | 1QFY2014 Result Update

Exhibit 3: Execution continues to disappoint

2,000 1,800 1,600 1,400 1,200 1,000 800 600 1264 1755 1472 1328 1184 400 200 0 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 Sales (` cr, LHS) Growth (yoy %, RHS) (5.4) (6.3) (0.8) 1741 (6.3) 1379 21.0 29.0 21.8 35.0 30.0 25.0 20.0 15.0 10.0 5.0 (5.0) (10.0)

Exhibit 4: Muted order inflows for 1QFY2014

25,000 20,000 15,000 10,000 21,990 20,196 20,520 19,639 18,799 18,553 5,000 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 Order Booking (` cr, LHS) Growth (yoy %, RHS) 18,098 (8.1) (11.8) 27.3 24.8 26.8 18.5 30.0 25.0 20.0 15.0 10.0 5.0 0.0 (5.0) (10.0) (15.0) (20.0)

(14.5)

Source: Company, Angel Research

Source: Company, Angel Research

Projects update
Pondicherry-Tindivanam: Toll collection for the project stood at `3.5lakhs/day, much lower than the breakeven level of `7-8lakhs/day. However, the company believes that toll revenue will pick up going ahead.
Western UP: Due to recent floods in Uttarakhand and Haridwar, toll collection has declined by `5lakh/day to `22lakh/day. Going ahead, the Management expects toll collection to increase to `27lakh/day.

Bangalore Elevated Toll Way (BETL): During the quarter, the toll collection was flat at `25lakh/day. Himachal Sorang: As per the Management, the company has completed negotiation with investors for full stake sale in the Himachal Sorang project. The Management expects the deal to be completed within a period of 9-10 months. Further, the company is also in talks with some regulatory authorities for signing short term power purchase agreements (PPA) and expects the projects to achieve commercial operation date (COD) by September 2013. Nelcast Power Project (1,320MW): The construction activity for the 1,320MW
(660MW x 2) Krishnapatnam power project is going as per schedule and the company has already placed orders for BTG. However, the company has not signed any power purchase agreement (PPA) till date and is hopeful of tying up for one within the next few quarters. Further, as per the Management, the company is in talks with some strategic investors for part/full stake sale in the power project.

High interest costs dent PAT growth

On the EBITDAM front, the companys EBITDA margins stood at 7.9% (down 116bp sequentially) and was slightly below our estimate of 8.0%. This was mainly on back of lower-than-expected execution during the quarter. Interest cost came in at `97cr a growth of 4.3% yoy. At the bottom-line level, NCC reported a PAT of `11cr (our estimate was of `18cr) in 1QFY2014, indicating a decline of 36.6% yoy. This was mainly due to lower-than-expected revenue performance, higher tax rate (39%) and high interest cost for the quarter.

August 8, 2013

NCC | 1QFY2014 Result Update

Exhibit 5: EBITDA margin trend

180 160 140 120 100 80 60 40 20 0 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 EBITDA (` cr, LHS) EBITDAM (%, RHS) 6.1 77 5.8 7.9 8.4 7.2 9.0 7.9 12.0 11.0 10.0 9.0 8.0 7.0 102 117 112 157 108 86 6.0 5.0

Exhibit 6: Low NPM a cause of worry

30 25 20 15 10 5 0 (5) (10) (15) PAT (` cr, LHS) PATM (%, RHS) (0.8) (9) 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 (0.5) (1.0) 0.6 11 17 11 27 11 8 1.1 0.9 0.6 0.8 1.6 2.0 1.5 1.0 0.5 0.0

Source: Company, Angel Research

Source: Company, Angel Research

Order book analysis

NCCs order book stands at `18,098cr (excluding L1 orders worth `1,000cr) as of 1QFY2014, indicating a decline of 12% yoy. The company has secured orders worth `1,045cr in 1QFY2014. The order backlog converts into an order book to sales of 3.2x trailing revenues. The Management has given an order inflow guidance of `6,600cr for the full year. Going forward, given the current environment, we estimate order inflows of `6,349cr and `7,845cr in FY2014 and FY2015 respectively.

Exhibit 7: Order backlog of `18,098cr (as of 1QFY2014, %)

11% 2% 26%
Irrigation Electricals Power Mining Metals International

3%

31%

Buildings, Roads & Oil & Gas Water, Env. & Railways

15% 5% 9%

Source: Company, Angel Research

Change in estimates
Due to slower execution and depleting order book in 1QFY2014, we have revised our estimates for FY2014 and FY2015.

Exhibit 8: Change in estimates to factor in lower top-line growth and higher interest cost
Earlier estimates 6,167 8.0 69 FY2014E Revised estimates 6,044 8.0 62 Variation (%) (2.0) 0.3 (9.8) Earlier estimates 6,945 8.2 93 FY2015E Revised estimates 6,533 8.0 68 Variation (%) (5.9) (2.1) (27.5)

Revenue EBITDA margin (%) PAT

Source: Company, Angel Research

August 8, 2013

NCC | 1QFY2014 Result Update

Outlook and valuation

During the quarter, NCC has increased its debt by `350cr to `2,576cr as on 1QFY2014. However the company is in process of reducing its debt through stake sale in two of its road BOT projects (Western UP tollways and Bangalore Elavated expressway), continued monetization of its land bank and completion of stake sale in the Himachal Sorang project (within nine to ten months). The company has already signed a term sheet with an investor for one of its road BOT project (Western UP tollways). The stock currently trades at a PE of 7.7x and 7.2x (including subsidiaries valuation) our FY2014E and FY2015E EPS respectively. Further, on account of the stake sale initiated by the company in some of its projects and decline in its stock price, we continue to maintain our Buy rating on the stock with a target price of `27.

Exhibit 9: Derivation of SOTP-based target price for NCC (FY2015E)

Particulars NCC Standalone NCC - International business Total Road BOT Brindavan Infra Bangalore Elevated OB Infra Western UP Pondicherry Tindivanam Total Power BOT NCC Power Total NCC Urban Infra + others Real Estate Grand Total No. of shares Upside CMP
Source: Company, Angel Research

Segment Construction Construction

Value ( ` cr) 263 63 326

Value per share (`) 10 2 13 1 2 2 1 1 7 8 8 0 27 26 47% 19

Basis P/E of 5x FY15 earnings P/E of 3x FY15 earnings

Annuity Toll Annuity Toll Toll

37 55 52 16 16 175

NPV at CoE of 16% NPV at CoE of 16% NPV at CoE of 16% NPV at CoE of 16% NPV at CoE of 16%

PPA / Merchant

200 200 0 701

P/BV multiple of 0.5x on FY13 end investment No value ascribed on account of uncertainty relating to Dubai Harmony project

Exhibit 10: Key assumptions

(` cr) Order Inflow Revenue Order Backlog (Y/E) OB to Sales ratio (x)
Source: Company, Angel Research

FY2010 8,914 4,754 15,370 2.7

FY2011 6,828 4,872 16,180 2.7

FY2012 10,118 5,236 20,197 3.3

FY2013 4,813 6,556 18,553 2.5

FY2014E 6,349 6,032 17,909 2.6

FY2015E 7,845 6,520 18,177 2.4

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NCC | 1QFY2014 Result Update

Exhibit 11: Recommendation summary

Company ABL CCCL IRB Infra ITNL IVRCL JP Assoc. L&T NCC Punj Lloyd Sadbhav Simplex In. Unity Infra CMP 46 7 69 109 11 31 19 24 69 50 20 TP 60 105 150 41 27 100 Rating FY13 Buy Buy Buy Buy Buy Buy Buy 1,853 1,931 3,687 6,645 3,759 - Neutral Top line (` cr) FY14E 1,928 2,281 3,997 7,444 5,673 2,234 2,492 4,312 8,041 5,892 9.8 13.6 8.1 10.0 8.4 5.4 13.2 6.8 11.7 22.8 9.2 7.1 53.3 (3.3) 16.7 26.8 (3.3) 2.5 44.8 2.4 (0.2) 0.9 10.8 12.5 EPS (`) 59.9 0.7 15.7 29.8 1.4 1.2 49.0 2.4 0.9 5.9 11.9 11.0 73.9 2.0 16.6 32.1 1.8 2.7 55.2 2.6 1.0 6.7 18.7 11.5 17.7 (0.3) 9.4 4.1 11.1 2.4 177.2 31.9 (4.0) 0.9 (2.1) 4.1 4.1 12.6 17.4 7.6 79.6 4.7 1.6 P/E 0.8 10.0 4.4 3.6 7.6 25.3 15.9 7.7 28.0 11.7 4.2 1.8 0.6 3.4 4.2 3.4 5.9 11.6 14.1 7.2 23.5 10.4 2.7 1.7 OB/ 2.3 2.2 2.4 2.2 4.8 2.5 3.2 1.8 5.6 2.7 1.6 FY15E CAGR (%) FY13 FY14E FY15E CAGR (%) FY13 FY14E FY15E Sales(x)

- Neutral

13,415 12,946 14,897 60,873 68,946 78,040 5,725 1,811 5,897 2,040 6,044 2,462 6,308 2,146 6,533 2,731 7,033 2,339

781 1,044

- Neutral 11,408 12,726 14,226 - Neutral - Neutral

Source: Company, Angel Research

Exhibit 12: SOTP break-up

Company ABL CCCL IRB Infra ITNL IVRCL JP Assoc. L&T NCC Punj Lloyd Sadbhav Simplex In. Unity Infra Core Const. ` 24 16 45 40 9 15 773 13 44 40 75 27 % to TP 40 100 43 27 31 37 74 53 100 40 100 100 ` 15 Real Estate % to TP 37 ` 36 60 110 6 60 Road BOT % to TP 60 57 73 20 60 Invst. In Subsidiaries ` 20 271 % to TP 69 26 ` 11 8 Others % to TP 27 27 Total ` 60 16 105 150 29 41 1,044 27 44 100 75 27

Source: Company, Angel Research

Company background
NCC, having started 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 8, 2013

NCC | 1QFY2014 Result Update

Profit & loss statement (Standalone)

Y/E March (` cr) Net Sales Other operating income Total operating income % chg Total Expenditure R.M. consumed Construction expenses Employee expenses SG&A EBITDA % chg (% of Net Sales) Depreciation & Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Share in profit of Associates 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 (`) Fully Diluted EPS (`) % chg FY2010 FY2011 FY2012 FY2013 FY2014E FY2015E 4,764 14.1 4,778 15.1 4,294 1,766 1,797 184 547 483 29.4 10.1 53 431 34.5 9.0 196 69 22.6 303 33.0 49.6 353 120.4 34.1 233 233 183 19.0 3.8 9.5 9.5 41.4 5,065 8.6 5,074 6.2 4,588 1,756 1,866 244 722 485 0.4 9.6 69 417 (3.3) 8.2 257 106 39.8 266 (12.5) 266 102.1 38.5 163 163 163 (10.7) 3.2 6.4 6.4 (32.9) 5,248 2.0 5,250 3.5 4,851 1,961 1,856 240 794 399 (17.7) 7.6 83 316 (24.1) 6.0 384 121 227.8 53 (80.1) 53 16.9 32.0 36 36 36 (78.0) 0.7 1.4 1.4 (78.0) 5,659 65.5 5,725 9.0 5,254 2,080 2,234 243 697 471 17.9 8.2 92 379 19.8 6.7 407 126 128.8 98 84.7 98 35.1 35.9 63 63 63 74.2 1.1 2.4 2.4 74.5 6,032 12.1 6,044 5.6 5,559 2,176 2,351 286 746 485 3.0 8.0 102 383 1.1 6.4 423 133 142.4 93 (4.6) 93 31.7 34.0 62 62 62 (1.8) 1.0 2.4 2.4 (1.8) 6,520 13.0 6,533 8.1 6,008 2,352 2,522 326 808 525 8.3 8.0 116 409 6.7 6.3 453 143 144.0 100 6.8 100 33.9 34.0 66 66 66 6.8 1.0 2.6 2.6 6.8

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NCC | 1QFY2014 Result Update

Balance sheet (Standalone)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Share App Money 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 Goodwill Investments Current Assets Inventories Sundry Debtors Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 756 202 554 43 941 4,108 754 1,299 200 1,852 3 1,845 2,263 3,801 923 249 675 46 1,201 4,947 896 1,454 121 2,466 9 1,974 2,972 4,894 1,039 313 726 35 1,240 6,052 1,234 1,307 65 3,432 15 3,382 2,669 4,671 1,094 405 690 35 1,254 6,149 1,426 1,143 80 2,583 916 3,580 2,569 4,547 1,274 507 768 35 1,254 6,475 1,508 1,192 102 2,713 960 3,731 2,743 4,800 1,455 623 831 35 1,254 6,845 1,613 1,271 95 2,855 1,011 3,909 2,936 5,056 51 2,194 2,246 1,530 25 3,801 51 2,327 2,379 2,484 31 4,894 51 2,360 2,411 2,234 25 4,671 51 2,417 2,468 2,056 23 4,547 51 2,469 2,521 2,256 23 4,800 51 2,526 2,577 2,456 23 5,056 FY2010 FY2011 FY2012 FY2013 FY2014E FY2015E

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NCC | 1QFY2014 Result Update

Cash flow statement (Standalone)

Y/E March (` cr) Profit before tax 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 FY2010 FY2011 FY2012 353 38 (477) (69) (120) (275) (148) (201) 69 (280) 6 286 (39) 368 620 65 135 200 266 46 (788) (106) (102) (684) (169) (260) 106 (323) 954 (30) 5 929 (78) 200 121 53 64 246 (121) (17) 226 (105) (39) 121 (24) (250) (9) 0 (259) (57) 121 65 FY2013 FY2014E FY2015E 98 92 116 (126) (35) 145 (56) (13) 126 57 (0) (178) (9) 1 (186) 15 65 80 93 102 (152) (133) (32) (122) (180) 133 (47) 200 (9) (0) 191 22 80 102 100 116 (200) (143) (34) (162) (180) 143 (37) 200 (9) (0) 191 (7) 102 95

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NCC | 1QFY2014 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 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 Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) Wcap cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 0.6 2.8 2.2 1.0 4.9 1.6 0.9 5.4 0.8 0.8 4.2 0.9 0.9 4.4 0.9 0.9 4.5 0.9 6.9 57 89 141 139 6.0 59 99 145 177 5.4 74 96 200 190 5.4 85 78 248 162 5.1 89 71 237 155 4.8 87 69 230 153 12.8 13.6 9.3 9.6 10.1 7.1 6.6 6.8 1.5 8.2 8.4 2.6 8.2 8.4 2.5 8.3 8.5 2.6 9.0 65.9 1.5 8.9 9.3 0.6 8.6 8.2 61.5 1.2 6.1 7.9 0.8 4.7 6.0 68.0 1.1 4.6 11.1 0.9 (1.5) 6.7 64.1 1.2 5.4 12.2 0.9 (0.4) 6.4 66.0 1.3 5.5 12.9 0.8 (0.6) 6.3 66.0 1.3 5.6 12.7 0.9 (0.7) 9.5 9.5 10.0 1.3 87.5 6.4 6.4 9.0 1.0 92.7 1.4 1.4 4.6 0.3 94.0 2.4 2.4 6.0 0.3 96.2 2.4 2.4 6.4 0.3 98.2 2.6 2.6 7.1 0.3 100.4 2.0 1.9 0.2 7.0 0.4 3.7 0.5 2.9 2.1 0.2 5.4 0.6 5.8 0.6 13.3 4.0 0.2 1.6 0.5 6.6 0.6 7.6 3.1 0.2 1.6 0.4 5.2 0.5 7.7 2.9 0.2 1.6 0.4 5.4 0.5 7.2 2.6 0.2 1.6 0.4 5.4 0.6 FY2010 FY2011 FY2012 FY2013 FY2014E FY2015E

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10

NCC | 1QFY2014 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 Pvt. 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 Pvt. 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 Pvt. 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 Pvt. 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 Pvt. 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 Pvt. 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 Pvt. 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 8, 2013

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