india morning bell - rathionline.com bell …bajaj corp. - well oiled; buy. we value the stock at a...

Anand Rathi Shares and Stock Brokers Limited (hereinafter “ARSSBL”) is a full service brokerage and equities research firm and the views expressed therein are solely of ARSSBL and not of the companies which have been covered in the Research Report. This report is intended for the sole use of the Recipient and is to be circulated only within India and to no countries outside India. Disclosures and analyst certifications are present in Appendix. Anand Rathi Research India Equities

India I Equities Country

Daily

4 September 2013

India Morning Bell

All the latest research and data

Bajaj Corp. - Well oiled; Buy. We value the stock at a target price of `335 at a PE of 22x Sep’14e earnings. Bajaj Almond drops continues to report healthy growth and is on the way to hit a 65% market share in almond-based hair oils. Kailash Parbat, cooling oil, has stabilized and is expected to report cash breakeven in FY14. The company is expected to report 21% earnings CAGR over FY13-15. We believe the acquisition of NOMARKS and the success of Kailsh Parbat will help erase the tag of a ‘single-product company’.

Dalmia Bharat - Key highlights. Dalmia Bharat’s plants in TN and AP have combined cement capacity of 9m tons. Its market share in South is up from 7.1% in FY10 to 9.2% in FY13, making it a dominant player. Market share in TN and Kerala is at 14% and 13%, respectively. It derives 47% of sales from TN, 21% from Kerala, 13% from Karnataka and the balance from AP. The Telangana issue in AP may result in a chaos in near term, given opposition to division of the state from some quarters. We expect South to remain an oversupply zone until 2017, given surplus in AP and upcoming capacities in Karnataka.

Derivatives view.

Sensex: 18235

Nifty: 5341

India: Demand-side GDP at 2.4% in 1QFY14

2.43.0

0

2

4

6

8

10

12

14

1QFY

07

3QFY

07

1QFY

08

3QFY

08

1QFY

09

3QFY

09

1QFY

10

3QFY

10

1QFY

11

3QFY

11

1QFY

12

3QFY

12

1QFY

13

3QFY

13

1QFY

14

(Rea

l gro

wth

, %)

Demand side GDP

Source: CSO

Ch

art

of

the

da

y

Markets 3 Sept ’13 1 Day YTD Sensex 18235 -3.4% -6.1%Nifty 5341 -3.8% -9.5%Dow Jones 14834 0.2% 13.2%S & P 500 1640 0.4% 15.0%FTSE 6468 -0.6% 9.7%Nikkei* 13889 -0.7% 33.6%Hang Seng* 22164 -1.1% -2.2%

Volumes (US$m) 3 Sept ’13 1 Day Avg '13Cash BSE 322 23.6% 369Cash NSE 1,683 15.1% 1,966Derivatives (NSE) 22,913 45.5% 26,729

Flows (US$m) 3 Sept ’13* MTD YTD FII – Cash Buy 305 676 98,270Sell 411 712 86,760Net -106 -35 11,485FII - Derivatives Buy 3,998 6,943 684,780Sell 4,087 6,885 674,622Net -89 58 10,097DII – Cash Buy 207 310 12,891Sell 119 264 15,423Net 88 46 -2,497

Others 3 Sept ’13 1 Day YTD Oil Brent (US$/bbl)* 115.6 -0.1% 9.3%Gold (US$/oz)* 1,413.5 0.1% -15.6%Steel (US$/MT) 590.0 0.0% 1.3%`/US$ 67.73 0.0% -18.8%US$/Euro* 1.32 0.0% 0.2%Yen/US$* 99.55 0.0% -12.9%Call Rate 10.15% -10.bps 115.bps10-year G-Secs 8.58% 11.2bps 53.bpsEMBI spreads 369.33 -2.2bps 121.bps@7:30am *Provisional Source: BSE, Bloomberg

4 September 2013 India Morning Bell

Anand Rathi Research India Equities

Market Data

Price Performance Price Performance Price Performance Top-5 gainers Top-5 gainers Top-5 gainersCompany CMP (INR) 1 wk (%) 1 Mth (%) Company CMP (INR) 1 wk (%) 1 Mth (%) Company CMP (INR) 1 wk (%) 1 Mth (%)

STERLITE INDUSTR 90 19.3 19.0 MCX INDIA LTD 393 27.6 (3.9) MANAPPURAM FINAN 19 17.8 54.3

M&M FIN SERVICES 274 16.9 10.8 INDIAN INFOTECH 46 22.6 0.5 S MOBILITY LTD 43 14.9 49.2

NATIONAL ALUMIN 35 16.0 40.4 GUJARAT FLUOROCH 254 17.3 3.4 SULABH ENGR & SV 138 14.8 24.2

SESA GOA LTD 189 12.6 52.4 NIIT TECH LTD 295 14.2 23.4 RUCHI SOYA INDUS 40 14.4 (22.0)

RELIANCE COMMUNI 130 12.0 5.3 ESSAR PORTS LTD 69 12.6 1.1 SHREE RENUKA SUG 18 13.8 14.9

Top-5 losers Top-5 losers Top-5 losersCompany CMP (INR) 1 wk (%) 1 Mth (%) Company CMP (INR) 1 wk (%) 1 Mth (%) Company CMP (INR) 1 wk (%) 1 Mth (%)

IDFC LTD 84 (11.9) (19.4) PIPAVAV DEFENCE 50 (22.4) (25.8) UNITED BK OF IND 29 (15.2) (12.9)

BERGER PAINTS 201 (11.5) (1.7) FINANCIAL TECHNO 115 (20.5) (22.2) SPICEJET LTD 19 (14.4) (25.0)

ADANI ENTERPRISE 139 (11.1) (11.8) FED BANK LTD 248 (13.8) (29.0) DREDGING CORP 249 (12.7) 54.2

BHARAT PETROL 276 (9.5) (4.6) WESTLIFE DEVELOP 337 (10.4) (1.4) PARSVNATH DEVEL 28 (11.9) 0.0

PUNJAB NATL BANK 439 (8.5) (16.2) IRB INFRASTRUCTU 64 (10.0) 4.5 FINOLEX INDUS 104 (11.3) (10.2)

Volume Volume VolumeVolume spurts Volume spurts Volume spurtsCompany CMP (INR) 1 wk avg 1/4 wk (%) Company CMP (INR) 1 wk avg 1/4 wk (%) Company CMP (INR) 1 wk avg 1/4 wk (%)

SESA GOA LTD 189 20,507,344 146.3 WESTLIFE DEVELOP 337 1,215,252 295.6 HATSUN AGRO PROD 139 144,744 272.6

IDFC LTD 84 43,538,128 145.1 PRESTIGE ESTATES 115 963,078 178.4 MAGMA FINCORP 70 243,922 254.8

GILLETTE INDIA 2,083 5,060 128.5 CMC LTD 1,273 30,540 156.2 GUJARAT ALKALIES 151 509,157 251.6

SJVN LTD 19 789,927 126.1 JAGRAN PRAKASHAN 83 219,599 136.7 ASAHI INDIA GLAS 32 760,520 239.7

IPCA LABS LTD 646 465,632 110.5 AIA ENGINEERING 338 9,823 134.8 GRINDWELL NORTON 226 48,247 238.1

Technicals Technicals Technicals Above 200 DMA Above 200 DMA Above 200 DMACompany CMP (INR) 200D Avg (%) Company CMP (INR) 200D Avg (%) Company CMP (INR) 200D Avg (%)

TATA CONSULTANCY 2,057 1,493 37.7 PINE ANIMATION L 89 45 118.1 SURABHI CHEMICAL 37 10 265.2

HCL TECH LTD 1,038 757 37.2 # WESTLIFE DEVELOP 337 163 107.5 C MAHENDRA EXP L 180 90 99.6

RELIANCE COMMUNI 130 96 37.0 # ASIANLAK CAP&FIN 90 45 101.4 SULABH ENGR & SV 138 72 92.3

TECH MAHINDRA LT 1,375 1,033 33.1 # INDIAN INFOTECH 46 26 78.3 RISA INTERNATION 510 278 90.0

WIPRO LTD 484 372 30.1 KAILASH AUTO FIN 38.6 24.0 61.3 S R K INDUSTRIES 349 246 49.4

Below 200 DMA Below 200 DMA Below 200 DMACompany CMP (INR) 200D Avg (%) Company CMP (INR) 200D Avg (%) Company CMP (INR) 200D Avg (%)

WOCKHARDT LTD 450 1,430 (68.6) FINANCIAL TECHNO 115 808 (85.7) GITANJALI GEMS L 74 454 (83.6)

BANK OF INDIA 145 289 (49.9) MMTC LTD 46 320 (85.5) NATL FERTILIZERS 18 52 (64.4)

CANARA BANK 207 400 (48.2) MCX INDIA LTD 393 986 (60.0) SUZLON ENERGY 6 14 (58.2)

JAIPRAKASH ASSOC 36 70 (47.9) INDIAN BANK 65 154 (58.0) JUBILANT LIFE 71 166 (57.3)

YES BANK LTD 253 454 (44.1) INDIA TOURISM 515 1,202 (56.6) PUNJ LLOYD LTD 22 45 (51.2)

Large Caps Mid Caps Small Caps(>US$1bn) (US$250m-1bn) (US$100m-250m)

Source: Bloomberg


Key financials (YE Mar) FY11 FY12 FY13 FY14e FY15e

Sales (`m) 3,587 4,722 6,057 7,525 9,274

Net profit (`m) 991 1,201 1,662 2,065 2,433

EPS (`) 6.7 8.1 11.3 14.0 16.5

Growth (%) 0.0 21.2 38.4 24.3 17.8

PE (x) 35.9 29.6 21.4 17.2 14.6

PBV (x) 9.4 8.3 7.3 6.4 5.7

RoE (%) 49.3 29.8 36.4 39.8 41.2

RoCE (%) 52.9 28.0 36.7 40.0 42.4

Dividend yield (%) 0.9 1.9 3.0 3.7 4.6

Net gearing (%) (109.3) (79.2) (76.9) (76.2) (75.7)

Source: Company, Anand Rathi Research

Consumer

Visit noteIndia I Equities

4 September 2013

Bajaj Corp.

Well oiled; Buy

Key takeaways from management meet

Large scope for growth in premium hair oil. The hair oil market in India is growing at 5-6% in volumes, and one third of it remains un-branded. This point to a vast growth potential for organised players like Bajaj Corp. Also, almost 46% of the organised hair oil market still comprises the basic coconut hair oil, auguring well for premium oils like Bajaj Almond Drops. Management expects healthy revenue growth of 15%+ for premium hair oils in the coming years.

Muted response to products of competitors. HUL’s Dove Elixir hair oil is priced at an expensive `185. Dabur’s Almond hair oil has not been able to grow market beyond 3-4% after withdrawal of the aggressive marketing support. Moreover, Keo Karpin, the other largest brand in the segment also continues to loose market share with limited investment. Against these, Bajaj Almond Drops hair oil, priced at `50, holds a sweet spot.

Likely rise in input prices may hit margins. Cost of light liquid paraffin, the key input, may move upwards due to sharp rupee depreciation of ~15%. Anticipating this, Bajaj Corp. raised prices of its products by 6% in April 2013 and may hike prices again after 1-2 quarters to pass on higher costs, if any, to end consumers. Also, diesel prices are rising, raising freight costs. This may adversely affect its product’s price competitiveness and margins in the long run.

Our take. We value the stock at a target price of `335 at a PE of 22x Sep’14e earnings. Bajaj Almond drops continues to report healthy growth and is on the way to hit a 65% market share in almond-based hair oils. Kailash Parbat, cooling oil, has stabilized and is expected to report cash breakeven in FY14. The company is expected to report 21% earnings CAGR over FY13-15. We believe the acquisition of NOMARKS and the success of Kailsh Parbat will help erase the tag of a ‘single-product company’. Risk. Higher raw-material prices and keener -than-expected competition.

Rating: Buy Target Price: `335 Share Price: `241

Relative price performance

Bajaj Corp

Sensex

150

170

190

210

230

250

270

290

Sep-

12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr-1

3

May

-13

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13

Jul-1

3

Aug-

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Sep-

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Source: Bloomberg

Key data BJCOR IN / BACO.BO52-week high / low `284 / `159Sensex / Nifty 18206 / 53373-m average volume US$0.6m Market cap `36bn / US$531mShares outstanding 148m

Shareholding pattern (%) Jul’13 Jun’13 Mar’13

Promoters 75.0 84.8 84.8 - of which, Pledged - - -Free Float 25.0 15.2 15.2 - Foreign Institutions 12.1 9.8 10.0 - Domestic Institutions 2.5 0.3 0.1 - Public 10.4 5.1 5.1

4 September 2013 Bajaj Corp. – Well oiled; Buy

Anand Rathi Research 2

Quick Glance – Financials and ValuationsFig 1 – Income statement (`m)

Year-end: Mar FY11 FY12 FY13 FY14e FY15e

Net revenues 3,587 4,722 6,057 7,525 9,274 Revenue growth (%) 8.7 31.7 28.3 24.2 23.2 - Op. expenses 2,506 3,568 4,342 5,388 6,687 EBIDTA 1,081 1,154 1,715 2,137 2,587 EBITDA margin (%) 30.1 24.4 28.3 28.4 27.9 - Interest expenses - 1 1 - -- Depreciation 18 26 40 63 85 + Other income 178 385 411 523 577 - Tax 250 311 424 532 647 Effective tax rate (%) 20.1 20.6 20.3 20.5 21.0 Reported PAT 991 1,201 1,662 2,065 2,433 +/- Extraordinary items (150) - - - -+/- Minority interest - - - - -Adjusted PAT 841 1,201 1,662 2,065 2,433 Adj. FDEPS (`/share) 6.7 8.1 11.3 14.0 16.5 Adj. FDEPS growth (%) 0.0 21.2 38.4 24.3 17.8 Source: Company, Anand Rathi Research

Fig 3 – Cash-flow statement (`m) Year-end: Mar FY11 FY12 FY13 FY14e FY15e

Consolidated PAT 841 1,201 1,662 2,065 2,433 +Depreciation 18 26 40 63 85 Cash profit 992 1,198 1,697 2,128 2,518 - Incr./(Decr.) in WC 140 28 181 83 117 Operating cash-flow 1,132 1,226 1,878 2,211 2,635 - Capex (62) (196) (441) (350) (400)Free cash-flow 1,070 1,030 1,437 1,861 2,235 - Dividend - (1,013) (1,109) (1,369) (1,711)+ Equity raised 2,802 - - - -+ Debt raised - - - - -- Investments (3,227) (556) 1,289 (1,200) (1,200)- Misc. items - - - - -Net cash-flow 646 (539) 1,617 (708) (676)+ Opening cash 168 813 275 1,892 1,184 Closing cash 813 275 1,892 1,184 508 Source: Company, Anand Rathi Research

Fig 5 – PE band

Bajaj corp

9x

12x

15x

19x

23x

5075

100125150175200225250275300325350375

Jul-1

0

Sep-

10

Nov

-10

Jan-

11

Mar

-11

May

-11

Jul-1

1

Sep-

11

Nov

-11

Dec

-11

Feb-

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2

Jun-

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Aug-

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Oct

-12

Dec

-12

Feb-

13

Apr-1

3

Jun-

13

Aug-

13

(`)

Source: Bloomberg, Anand Rathi Research

Fig 2 – Balance sheet (`m) Year-end: Mar FY11 FY12 FY13 FY14e FY15e

Share capital 148 148 148 148 148 Reserves & surplus 3,616 4,131 4,678 5,374 6,096 Net worth 3,763 4,278 4,826 5,522 6,243 Total debt - - - - -Minority interest - 4 - - -Def. tax liab. (net) (0) 10 15 15 15 Capital employed 3,763 4,292 4,840 5,536 6,258 Net fixed assets 220 819 1,221 1,508 1,823 Investments 3,301 3,135 1,845 3,045 4,245 - of which, Liquid 3,301 3,135 1,845 3,045 4,245 Net working capital (571) 64 (118) (201) (318)Cash and bank balance 813 275 1,892 1,184 508 Capital deployed 3,763 4,292 4,840 5,536 6,258 Net debt (4,114) (3,405) (3,737) (4,229) (4,753)WC days (15.9) 1.4 (1.9) (2.7) (3.4)Book value (`/sh) 25.5 29.1 32.8 37.5 42.4 Source: Company, Anand Rathi Research

Fig 4 – Ratio analysis @ `241 Year-end: Mar FY11 FY12 FY13 FY14e FY15e

P/E (x) 35.9 29.6 21.4 17.2 14.6 P/B (x) 9.4 8.3 7.3 6.4 5.7 EV/sales (x) 8.9 6.7 5.3 4.2 3.4 EV/EBITDA (x) 29.5 27.6 18.6 14.9 12.3 RoAE (%) 49.3 29.8 36.4 39.8 41.2 RoACE (%) 52.9 28.0 36.7 40.0 42.4 Dividend yield (%) 0.9 1.9 3.0 3.7 4.6 Dividend payout (%) 28.3 49.1 57.7 57.1 60.6 RM to sales (%) 43.7 46.6 42.5 42.4 42.9 Ad spend to sales (%) 20.4 22.5 20.9 21.0 21.0 EBITDA growth (%) 10.9 6.8 48.6 24.6 21.1 EPS growth (%) 0.0 21.2 38.4 24.3 17.8 PAT margin (%) 25.4 27.6 25.4 27.4 27.4 FCF/EPS (%) 108.1 85.8 86.5 90.1 91.9 OCF/ Sales (%) 31.6 26.0 31.0 29.4 28.4 Source: Company, Anand Rathi Research

Fig 6 – Revenue break-up

Bajaj Almond Drops91%

Brahmi Amla5%

Kailash Parbat1%

Amla Shikakai2%

Others1%

Source: Companies

Appendix Analyst Certification The views expressed in this Research Report accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s) in this report. The research analysts are bound by stringent internal regulations and also legal and statutory requirements of the Securities and Exchange Board of India (hereinafter “SEBI”) and the analysts’ compensation are completely delinked from all the other companies and/or entities of Anand Rathi, and have no bearing whatsoever on any recommendation that they have given in the Research Report. Important Disclosures on subject companies Rating and Target Price History (as of 3 September 2013)

Bajaj Corp

1

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320

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Date Rating TP (`)

Share Price (`)

1 22-Nov-10 Hold 134 105 2 19-Apr-11 Buy 134 92 3 27-Jun-11 Buy 155 116 4 8-Nov-11 Buy 146 100 5 6-Mar-12 Buy 155 114 6 6-Jul-12 Buy 189 125 7 8-Oct-12 Buy 235 187 8 14-Dec-12 Buy 263 212 9 4-Jan-13 Buy 295 237 10 9-Apr-13 Buy 325 234 11 6-May-13 Buy 335 254

The research analysts, strategists, or research associates principally responsible for the preparation of Anand Rathi Research have received compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors, firm revenues and overall investment banking revenues.

Anand Rathi Ratings Definitions

Analysts’ ratings and the corresponding expected returns take into account our definitions of Large Caps (>US$1bn) and Mid/Small Caps (<US$1bn) as described in the Ratings Table below:

Ratings Guide Buy Hold Sell Large Caps (>US$1bn) >15% 5-15% <5% Mid/Small Caps (<US$1bn) >25% 5-25% <5%

Anand Rathi Research Ratings Distribution (as of 28 Feb 2013) Buy Hold Sell Anand Rathi Research stock coverage (184) 65% 27% 8% % who are investment banking clients 4% 2% 0% Other Disclosures This report has been issued by ARSSBL which is a SEBI regulated entity, and which is in full compliance with all rules and regulations as are applicable to its functioning and governance. The investors should note that ARSSBL is one of the companies comprising within ANAND RATHI group, and ANAND RATHI as a group consists of various companies which may include (but is not limited to) its subsidiaries, its affiliates, its group companies who may hold positions, views, stakes and may service the companies covered in this report independent of ARSSBL. Investors are cautioned to be aware that there could arise a potential conflict of interest in the views held by ARSSBL and other companies of Anand Rathi who maybe affiliated, connected or catering to the companies mentioned in the Research Report; even though, ARSSBL and Anand Rathi are fully complaint with all procedural and operational regulatory requirements. Thus, investors should not use this as a sole basis for making their investment decision and should consider the recommendations mentioned in the Research Report bearing in mind the aforementioned.

Further, the information herein has been obtained from various sources which we believe is reliable, and we do not guarantee its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities (hereinafter referred to as “Related Investments”). ARSSBL and/or Anand Rathi may trade for their own accounts as market maker / jobber and/or arbitrageur in any securities of the companies mentioned in the Research Report or in related investments, and may be on taking a different position from the ones which haven been taken by the public orders. ARSSBL and/or Anand Rathi and its affiliates, directors, officers, and employees may have a long or short position in any securities of the companies mentioned in the Research Report or in Related Investments. ARSSBL and/or Anand Rathi, may from time to time, perform investment banking, investment management, financial advisory or any other services not explicitly mentioned herein, or solicit investment banking or other business from, any entity and/or company mentioned in this Research Report; however, the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the other companies of Anand Rathi, even though there might exist an inherent conflict of interest.

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Additional information on recommended securities/instruments is available on request.


Cement

Post-Conference NoteIndia I Equities

Year end 31 Mar FY09 FY10 FY11 FY12 FY13

Sales (`m) 17,536 21,543 17,459 23,422 27,906

Net Profit (`m) 1,160 1,325 (22) 1,290 1,248

EPS (`) 13.7 15.6 (0.3) 15.2 14.7

Growth (%) (66.9) 14.2 NA NA) (3.3)

PE (x) 7.7 6.7 NA 6.9 7.1

P BV (x) 0.7 0.6 0.3 0.3 0.3

RoE (%) 9.5 9.8 (0.1) 4.6 4.2

RoCE(%) 10.3 8.0 2.1 8.4 7.7

Dividend Yield (%) 1.8 0.9 1.1 1.4 1.8

Net Gearing (%) 175.9 187.5 49.8 57.4 102.6

Source: Company, Anand Rathi Research Note: FY09/10 includes the sugar and Power

`

Senses: 18308 Nifty: 5415

Share Price: `105

Key data DBEL IN / DALA.BO52-week high / low `204 / `95Sensex / Nifty 18308 / 54153-m average volume US$0.02mMarket cap `8.9bn / US$148mShares outstanding 81.2m

Shareholding pattern (%) Jun ’13 Mar ’13 Dec ’12

Promoters 62.8 62.8 62.8 - of which, Pledged - - -Free Float 37.2 37.2 37.2 - Foreign Institutions 8.4 8.7 8.7 - Domestic Institutions 3.4 3.4 3.6 - Public 25.4 25.1 25.0

4 September 2013

Dalmia Bharat

Key highlights

The South king. Dalmia Bharat’s (Dalmia) plants in TN and AP have combined cement capacity of 9m tons. Its market share in South is up from 7.1% in FY10 to 9.2% in FY13, making it a dominant player. Market share in TN and Kerala is at 14% and 13%, respectively. It derives 47% of sales from TN, 21% from Kerala, 13% from Karnataka and the balance from AP.

Healthy investments. Dalmia’s investments through its 85% subsidiary, Dalmia Cement Bharat (DCBL), include 100% stake in Dalmia Cement Ventures, which has plans to undertake greenfield cement projects; 100% stake in Adhunik Cement (1.5m ton) and 76% stake in Calcom Cement (1.3m ton) both in North-East; and 45% stake in OCL India that has 5.3m ton capacity in Odisha. It sells under the brands of ‘Dalmia Cement’, ‘Vajram, ‘Rockfort’, ‘Dalmia Superoof’, ‘Dalmia Superfoundation’, ‘Dalmia Coastal’ and ‘Konark’. KKR had taken a 15% stake in DCBL in 2010.

Growing capacity. Over a period of time, the company has established plants in four locations across three states at a capex of `30bn. Its revenue has seen a 24% CAGR over FY07-12. Growth plans include a 2.5m ton greenfield plant in Belgaum, Karnataka, by Sep’15 at a capex of `13.5bn. It also has a 1.4m ton grinding unit under construction in West Bengal under OCL and clinker (1m ton), cement expansion (0.9m ton) underway in Calcom Cement. Group capacity is expected to rise to 22m ton by Sep’15 from 17m ton currently. It continues to explore organic, inorganic modes of expansion.

South India landscape. The Telangana issue in AP may result in a chaos in near term, given opposition to division of the state from some quarters. We expect South to remain an oversupply zone until 2017, given surplus in AP and upcoming capacities in Karnataka. Cement prices in TN and Karnataka may not remain isolated from disturbances in AP, but should stabilize in the near term with more players agreeing to maintain production discipline. Given impediments of project setup like risk-return (EBITDA/ton of `800 vs cost of `6000) land/clearances hassles, consolidation is the key.

Relative price performance

DBEL

Sensex

90

110

130

150

170

190

210

Sep-

12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr-1

3

May

-13

Jun-

13

Jul-1

3

Aug-

13

Sep-

13

Source: Bloomberg

4 September 2013 Dalmia Bharat – Key highlights

Anand Rathi Research 2

Quick Glance – Financials and ValuationsFig 1 – Income statement (`m)

Year end 31 Mar FY09 FY10 FY11 FY12 FY13

Net sales 17,536 21,543 17,459 23,422 27,906 Sales growth (%) 18.4 22.8 NA 34.2 19.1 - Op. expenses 13,372 17,056 14,784 17,748 21,591 EBIDTA 4,164 4,486 2,675 5,674 6,316 EBITDA margins (%) 23.7 20.8 15.3 24.2 22.6 - Interest 1,470 1,757 1,724 1,513 2,314 - Depreciation 872 1,320 1,753 1,817 2,059 + Other income 359 597 1,516 756 796 - Tax 1,021 681 611 1,229 1,336 Effective tax rate (%) 46.8 33.9 85.5 45.4 48.8 Consolidated PAT 1,160 1,325 103 1,476 1,402 PAT growth (%) (66.9) 14.2 NA 1,329.7 (5.0)Adjusted PAT 1,160 1,325 (22) 1,290 1,248 FDEPS (`/share) 13.7 15.6 (0.3) 15.2 14.7 CEPS (`/share) 24.0 31.2 20.4 36.7 39.1 DPS (`/share) 1.9 1.0 1.2 1.4 1.9 Source: Company, Anand Rathi Research Note: FY09/10 includes the sugar and Power

Fig 3 – Cash-flow statement (`m) Year end 31 Mar FY09 FY10 FY11 FY12 FY13

Consolidated PAT 1,160 1,325 (22) 1,290 1,248 +Non Cash Items 1,529 1,924 (608) 2,214 2,446 Cash profit 2,690 3,249 (629) 3,504 3,694 - Incr/(Decr) in WC (50) 3,038 (3,570) 674 2,167 Operating cash flow 2,739 211 2,941 2,830 1,527 -Capex 10,762 3,065 8,302 274 18,641 Free cash flow (8,023) (2,854) (5,361) 2,556 (17,114) -Dividend 203 108 118 142 190 + Equity raised 53 280 17,743 158 1,950 + Debt raised 7,549 5,572 (10,580) (1,109) 15,558 -Investments 825 1,612 (656) 5,343 (132) -Misc. items (0) - - - - Net cash flow (1,448) 1,278 2,340 (3,880) 336 +Opening cash 2,373 925 2,203 4,543 664 Closing cash 925 2,203 4,543 664 999 Source: Company, Anand Rathi Research Note: FY09/10 includes the sugar and Power

Fig 5 – Return Ratios

-2

0

2

4

6

8

10

12

FY09

FY10

FY11

FY12

FY13

(%)

RoAE RoACE

Source: Company, Anand Rathi Research

Fig 2 – Balance sheet (`m) Year end 31 Mar FY09 FY10 FY11 FY12 FY13

Share capital 169 169 169 169 169 Reserves & surplus 12,601 14,098 27,615 28,736 30,841 Shareholders’ fund 12,770 14,267 27,784 28,905 31,011 Debt 23,383 28,954 18,375 17,266 32,824 Deferred Tax Liab (net) - - - - -Minority interests - - 4,086 4,272 5,174 Capital employed 36,152 43,221 50,245 50,442 69,009 Fixed assets 28,791 30,536 37,086 35,542 52,124 Investments 5,636 7,248 6,592 11,935 11,804 Working capital 3,087 6,125 2,555 3,228 5,395 Cash 925 2,203 4,543 664 999 Capital deployed 36,152 43,221 50,245 50,442 69,009 No. of shares (m) 84.4 84.4 84.7 84.7 84.7 Net Debt/Equity (%) 175.9 187.5 49.8 57.4 102.6 W C turn (days) 64.8 78.0 90.7 45.1 56.4Book Value (`/share) 151 168 328 341 366 Source: Company, Anand Rathi Research Note: FY09/10 includes the sugar and Power

Fig 4 – Ratio analysis @ `105 Year end 31 Mar FY09 FY10 FY11 FY12 FY13

P/E (x) 7.7 6.7 NA 6.9 7.1Cash P/E (x) 4.4 3.4 5.1 2.9 2.7EV/EBITDA (x) 6.2 6.3 6.0 2.4 4.6EV/Sales (x) 1.5 1.3 0.9 0.6 1.0P/B (x) 0.7 0.6 0.3 0.3 0.3RoAE (%) 9.5 9.8 -0.1 4.6 4.2RoACE (%) 10.3 8.0 2.1 8.4 7.7Dividend yield (%) 1.8 0.9 1.1 1.4 1.8Dividend payout (%) 17.5 8.2 NA 11.0 15.2Debt/Equity (x) 1.8 2.0 0.7 0.6 1.1Receivable days 33.2 36.2 32.9 18.4 24.7Inventory days 106.4 104.8 105.0 43.6 40.1Payable days 243.3 169.5 192.8 144.4 196.0Working capital days 64.8 78.0 90.7 45.1 56.4Fixed asset T/O (x) 0.7 0.7 0.5 0.6 0.6Source: Company, Anand Rathi Research Note: FY09/10 includes the sugar and Power

Fig 6 – Sales Mix (FY13)

Tamil Nadu, 47

AP, 9

Kerala, 21

North East, 7

Karnataka, 13Others, 3

Source: Company

Appendix Analyst Certification The views expressed in this Research Report accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s) in this report. The research analysts are bound by stringent internal regulations and also legal and statutory requirements of the Securities and Exchange Board of India (hereinafter “SEBI”) and the analysts’ compensation are completely delinked from all the other companies and/or entities of Anand Rathi, and have no bearing whatsoever on any recommendation that they have given in the Research Report. The research analysts, strategists, or research associates principally responsible for the preparation of Anand Rathi Research have received compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors, firm revenues and overall investment banking revenues.



Ratings Guide Buy Hold Sell Large Caps (>US$1bn) >15% 5-15% <5% Mid/Small Caps (<US$1bn) >25% 5-25% <5% Anand Rathi Research Ratings Distribution (as of 28 Feb 2013) Buy Hold Sell Anand Rathi Research stock coverage (184) 65% 27% 8% % who are investment banking clients 4% 2% 0% Other Disclosures This report has been issued by ARSSBL which is a SEBI regulated entity, and which is in full compliance with all rules and regulations as are applicable to its functioning and governance. The investors should note that ARSSBL is one of the companies comprising within ANAND RATHI group, and ANAND RATHI as a group consists of various companies which may include (but is not limited to) its subsidiaries, its affiliates, its group companies who may hold positions, views, stakes and may service the companies covered in this report independent of ARSSBL. Investors are cautioned to be aware that there could arise a potential conflict of interest in the views held by ARSSBL and other companies of Anand Rathi who maybe affiliated, connected or catering to the companies mentioned in the Research Report; even though, ARSSBL and Anand Rathi are fully complaint with all procedural and operational regulatory requirements. Thus, investors should not use this as a sole basis for making their investment decision and should consider the recommendations mentioned in the Research Report bearing in mind the aforementioned.














Nifty A-T-M IVs closed the day @31.1%.

Trading Ban None.

Nifty Option Equilibrium moved down to 5465 (-10pts).

NIFTY ended the day approximately 3.8% lower. Market volumes (Rs1,688bn) were up 44%.

Session Recap Fund Flow FIIs were net sellers of (-Rs7.2bn) & (Rs16.3bn) in provisional cash & directional futures respectively. Their selling in index futures was a mixture of long closures (17,545cts) and fresh shorts (50,963cts). DFIs were net buyers of +Rs6bn in provisional cash.

NIFTY Sep-13 is trading at 3 pts premium to spot. Nifty OI was up approximately 0.6m shrs. Major option changes were in the Sep-13 5600CE (+0.5m shrs), Sep-13 5700CE (+0.5m shrs), Sep-13 5900CE (+0.5m shrs), Sep-13 5500PE (-0.5m shrs) & Sep-13 4600PE (+0.4m shrs).

Nifty F&O

Fresh Long: COAL, HEXW & GDSP. Fresh Short: ITC, NTPC, GAIL, BHARTI & PWGR. Long Closure: SNDB, OPTC & LPC.

SSF Open Interest changes

India Derivatives Flash

Stock Futures OI Money Flows (Rs mn)

TTCH (3.5x), HAVL (3.4x), PTCIN (2.3x), JUBI (2x), SIEM (1.8x), HZ (1.7x), KBL (1.6x), HDIL (1.5x), VOLT (1.5x), LPC (1.5x), ARVND (1.4x), SNDB (1.4x), COAL (1.4x),

Delivery Spikes

4-September-2013

Futures OI is down by Rs7.08bn (-1.7%) and constitutes 33% of overall market-wide position.

Anand Rathi Shares and Stock Brokers, its affiliates and subsidiaries, do and seek to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Disclosures and analyst certifications are located in Appendix.

2 - Sep 3 - SepNIFTY

Index Highlights

Spot Near Fut. Mid Fut. Near Basis Mid Basis Near OI (mn sh) Mid OI (mn sh)

5,550.8 5,344.6 5,554.6 5,372.1 5,577.3

3.1 3.9 30.6 26.5 18.7 18.0

1.6 1.6

5,341.5

Particulars 3 - Sep 2 - Sep Sentiment Indicators

PCR OI PCR Vol Historical Volt. % A-T-M IV Call % A-T-M IV Put %

1.41 1.48 1.19 1.04 35.14 28.50

30.70 27.20 31.80 29.20

Type 3 - Sep 2 - Sep

Market Volume Activity

Cash Deliveries* Delivery % Cash* F&O* Total Mkt Vol*

45.7 39.8 34.0 36.2

113.9 96.5 1,066.5

1,665.9 1,162.9 1,551.9

Price (%) Fut OI (%)Open Interest GainersTicker

ITC -5.7 16.0

COAL 1.2 15.7

NATP -2.8 12.9

PWGR -3.9 12.4

HEXW 1.6 11.6

Fut OI (%)Price (%)

Open Interest Losers

Ticker

SNDB -2.6 -11.7

LPC 1.8 -8.6

IDFC -5.1 -8.3

UNTP -3.3 -7.6

UNBK -6.1 -6.6

Symbol Buy Sell Net (D) Net (W) Net (I) OI (Rs) OI (Δ Rs)

FII Derivative Flows *

Ind. Futures Ind. Options Stk. Futures Stk. Options

25.3 43.8 -18.5 209.5 199.5 10.1

28.6 26.3 2.2 7.4 7.2 0.2

-18.2 20.7 33.6

1.9

-20.2 26.4 11.0

0.3

107.3 486.3 258.3

9.2

4.6 5.1-2.9 1.2

Total 270.8 276.8 -6.0 861.1 8.0 37.9 17.4

Symbol 3 - Sep 2 - SepMarket Wide Open Interest *

Ind. Futures Stk. Futures Ind. Options Stk. Options Total Market

130.0 131.6

750.0 724.0 271.1 277.0

56.0 51.01,207.1 1,183.6

HEXAWARE (CMP: Rs132)

Futures open interest +624k shrs (+12%). Cash deliveries (4m shrs) stood at 1.3x average 5-D deliveries.

* All Values in Rs. bn. * Cumulative flows summed up as D = Daily, W = Weekly & I = Inception

Nifty Basis Vs Total Volume & Total OI

Rollover % Vs Near OI & (Mid+Far) OI

• Nifty has rolled 8% of positions from Sep-13. • Implied roll costs stands at 31pts (58bps). • Sep-13 futures dividend component of 7.2pts.

• Nifty traded volumes were up/down 15% D-o-D • Future OI was up +643k shrs (3.3%). • NMF is trading at 3pts premium to spot.

NIFTY Near Month Option Distribution & Equilibrium

IV % OI ChgPrem. Expiry Strike

% Vol Chg

Vol ('000)

OI ('000)

% ConvΔ IV

Sep-13 5600 CE 56 36 18,106 3,535 27.5 3.5 317

Sep-13 5700 CE 32 35 17,701 3,727 26.5 3.6 316

Sep-13 5300 PE 152 51 17,169 6,836 32.6 2.1 01

Sep-13 5200 PE 118 92 15,453 4,530 34.5 2.2 26

Sep-13 5500 CE 90 77 14,736 3,843 28.7 3.3 312

Sep-13 5400 PE 194 52 13,679 3,873 30.7 2.3 01

Sep-13 5100 PE 91 106 12,514 3,178 36.0 2.2 12

Sep-13 5800 CE 17 11 12,060 2,960 25.6 3.7 01

Nifty Near-Mid-Far Option Activity Nifty Long Dated Option Activity

StrikeExpiry Prem. % Vol

Chg% OI Chg IV

Vol('000)

OI('000)

% Conv Δ IV

Dec-13 4500 PE 90.8 248 4 2,453 5 33.8 0.5 47 Dec-13 5500 CE 279.3 183 44 1,083 1 29.2 2.5 6 Dec-13 5000 PE 181.0 142 7 1,323 2 28.2 0.9 15 Dec-13 5500 PE 345.2 141 10 1,206 1 21.6 0.4 4 Dec-13 6000 CE 90.4 48 13 1,482 0 25.0 2.1 3 Dec-13 5000 CE 580.4 44 47 682 2 33.4 1.4 27 Dec-14 4500 PE 249.1 30 27 1,972 1 25.8 0.4 83 Dec-13 6500 PE 1,048.0 30 13 283 2 0.0 0.0 18

Maximum option OI in the Sep-13 5200-5300PEs & 5500-5700CEs. Option equilibrium (curve intersection above) is at 5475.

Volume & Open Interest represented in shares # %Conv - Conversion of volumes into net Change in (+/-) OI

Nifty-50 Option Activity

Expiry Strike Prem. Vol

('000) OI

('000) IV %

ConvOI

%Chg Ticker Δ IV

COAL Sep-13 295 CA 2 46 44.1 17.7 9344 4,300.0 AXSB Sep-13 600 PA 8 36 87.4 4.0 5019 1,440.0 APNT Sep-13 360 PA 5 26 47.7 6.2 10029 1,050.0 COAL Sep-13 260 PA 12 111 39.9 15.7 6681 912.5 TATA Sep-13 305 PA 28 9 46.4 55.6 788 700.0 AXSB Sep-13 800 CA 52 294 73.4 3.6 45157 515.7 TTMT Sep-13 320 PA 23 166 29.5 27.9 73145 504.2 SESA Sep-13 190 PA 26 48 73.3 1.2 6336 500.0

Non Nifty-50 Option Activity

Expiry Prem. Strike IV Vol

('000) OI

('000) %

Conv OI

%Chg Ticker Δ IV

10 50.9 2.649.87142750 CASep-13UNSP 5,800.0 5 76.7 32.764.8486065 CASep-13ALBK 2,300.0 4 47.7 6.851.64488160 CASep-13TTMT/A 2,100.0 1 60.0 14.654.81420135 CASep-13NMDC 600.0 2 57.9 2.253.72638210 CASep-13ARBP 550.0 32 73.9 7.649.6561100 CASep-13JUBI 425.0 4 75.0 9.558.8606452.5 CASep-13IDBI 400.0 1 57.1 11.079.51014105 CASep-13KBL 400.0

Nifty Stock Futures Vs Non-Nifty Stock Futures OI

Nifty-50 SSF OI stands at Rs187.1bn (-2.3bn), while Non-Nifty-50 is at Rs84bn (-3.6bn).

The OI segmentation (value/contract shrs) between Nifty-50 & Non-Nifty 50 stands at 69%/31% & 39%/61%.

Volume & Open Interest represented in shares # %Conv - Conversion of volumes into net Change in (+/-) OI

Futures Data Points03-September-201

Current (‘000)

OI (Y high)

Value (USD mn)

Future Price Future Volume Future OI

D% BasisI%Bloomberg Code Current D% Value (cr)I%W%D%W%

Current

(‘000) Change (Δ‘000)

Index BANKNIFTY 8689.4 -5.4 -0.7 -2.4 29 4031.5 1 2321 76 3.4 -30.4 6.8 2017 298 69.6 CNXINFRA 1860.1 -16 -23.9 -9 0 0.2 0 0 0 0 0 0 0 0 5 CNXIT 8213.8 -1.1 0.4 -0.7 -55 15.7 0 41 -3 -6.8 -24.1 32 33 5 75.9 CNXPSE 2172 -18.7 -27 -27 0 0.1 0 0 0 0 0 0 0 0 0 FTSE100 6484 -0.2 1.3 1 0 2 0 30 1 2.9 2.2 0 20 3 7.7 NFTYMCAP50 1847.9 4.4 0.4 1.3 518 0.6 0 0 0 0 -50 0 0 0 0 NIFTY 5344.5 -3.8 1.1 -1.3 6 27140.7 1 20334 643 3.3 -36 26.1 10873 1606 61.5 S&P500 1640.5 -0.2 0.8 0.5 0 64.8 1 291 13 4.6 10.1 116100 48 7 37.8

Auto AL 12.2 -3.6 0.4 3 83 4311 -0 14742 -270 -1.8 -21.8 1.6 18 3 61.8 APTY 62.8 -2.6 1.1 -1 80 1500 -0 7572 -124 -1.6 -23.8 3.4 48 7 28.7 BHFC 242.2 -1.6 3 -4 92 670 0 3316 -32 -1 -12.8 5.4 80 12 60.3 BJAUT 1836.2 -1.1 5.9 5.4 -9 692.4 0 1140 83 7.8 -19.9 17.9 209 31 61 EXID 123.8 -2.4 2.5 -1 65 580 0 1206 -42 -3.4 -16.5 5.6 15 2 17.7 HH 1871.9 -3.7 -2.1 -5.4 -128 690.9 -0 2654 24 0.9 4.6 35.7 497 73 70.2 MM 768 -0.4 -1.4 -3.2 -1 1740.5 -0 4802 276 6.1 -18 13.9 369 54 82 MRF 13161.9 -4.3 1.6 0.3 99 24.6 -0 29 -3 -9 -18.5 27.3 38 6 23.2 MSIL 1266.3 -3.1 2.2 1 -76 1546.5 -0 1859 -35 -1.9 -22.6 11.8 235 35 46.8 TTMT 299.1 -1.1 0.2 -2 61 20869 0 18888 -328 -1.7 -31.3 0.7 565 83 53.6 TTMT/A 150.3 -0.3 4.2 2.4 84 2596 1 11012 192 1.8 -10.8 1.3 165 24 60.2

Banking & Finance ALBK 66.5 -4 -0.4 -0.3 68 2746 0 4018 18 0.5 -12.2 1 27 4 45.7 ANDB 48.3 -5.1 -4.3 -5.2 63 2596 0 3560 -24 -0.7 -1.7 22.9 17 3 43.5 AXSB 786.9 -9.7 -6.4 -7.4 52 12904.3 0 10470 382 3.8 3.5 56.4 824 122 100 BOB 460.3 -2.8 3.4 1.5 -21 2578 1 3823 134 3.6 -6 13.6 176 26 92.5 BOI 135.4 -7 3.2 1.7 56 2515 0 3651 -19 -0.5 -31.9 -12.5 49 7 65.2 CBK 195.5 -6.4 0.2 -0.5 59 2178 0 3035 -29 -1 -23 -2.1 59 9 76.5 DBNK 43.2 -5.3 -0.4 0 70 6692 0 12288 -292 -2.3 -19.1 -0.7 53 8 67.2 FB 232 -7.6 -9.7 -14.4 83 715 -0 934 9 1 18.8 29.1 22 3 32.7 HDFC 705 -4.8 7.7 1.2 38 4118.3 0 8929 430 5 -26.1 17.9 630 93 50 HDFCB 565.7 -4.7 0.9 -1.2 56 7873.5 0 13301 1062 8.7 -26.4 31.7 752 111 73.6 ICICIBC 787.3 -5.6 -1 -2.3 47 7817.3 0 9901 29 0.3 -25.5 36.4 779 115 73.6 IDBI 53.3 -5.1 0.3 -2.6 47 3052 1 8764 8 0.1 -14.6 0.3 47 7 37.5 IDFC 79.9 -5 -0.5 -3 76 19268 0 29646 -2684 -8.3 5.6 41.6 237 35 89 IFCI 18.3 -5.9 -2.4 -1.9 -161 14816 0 56928 504 0.9 -16 2.8 104 15 56.5 IIB 348 -8.8 1.6 -1.6 -10 5289 0 10911 71 0.7 -9.2 8 380 56 90.8

* Price & OI changes are segregated as D = Daily, W = Weekly & I =Contract Inception * OI (Y High) = Current Futures OI in shrs as a % of Year high OI

Current (‘000)

OI (Y high)

Value (USD mn)



Current

(‘000) Change (Δ‘000)

IOB 39.3 -4.4 2.2 0.5 64 1296 0 2904 -80 -2.7 -28.3 -3.8 11 2 36.3 KBL 77.5 -2.8 3.8 3.1 58 12690 1 11616 -100 -0.9 -11.6 3.5 90 13 40.7 KMB 593.2 -4.6 -1.3 -8.7 -125 2886 0 8233 392 5 -6.4 19.2 488 72 93.6 LICHF 157.6 -7.6 -3 -3.9 61 5747 0 9708 -108 -1.1 -27.3 6.7 153 23 56.4 OBC 126.6 -3.5 -0.2 1.6 52 1435 -0 2225 -98 -4.2 -10.4 -2.5 28 4 68.7 PNB 412 -7.1 -5.2 -3.3 61 3639 1 4948 65 1.3 -10.6 6 204 30 89.4 POWF 106.3 -4.6 2.1 0.2 -28 4992 0 7484 -390 -5 -25.7 -5.3 80 12 62.5 RCAPT 304.5 -7 -0.1 -0.8 66 13224 0 4934 -80 -1.6 -24.1 -3.8 150 22 46.3 RECL 165.2 -5.2 -4 -1.3 30 2716 1 3587 258 7.8 -29.8 2.9 59 9 29.5 SBIN 1473.4 -3.2 -1.7 -1.1 -15 5062.4 0 6120 243 4.1 -19.2 9.4 902 133 77 SHTF 507.2 -2.9 -0.4 -0.7 67 326 2 1051 50 4.9 -24.6 6.5 53 8 55.6 SNDB 64.8 -2.6 -0.5 1.1 54 2084 0 2758 -364 -11.7 -26.3 -4.5 18 3 33.9 UCO 50.3 -5.1 -0.8 -4.4 70 5664 0 11672 184 1.6 -11.7 9.7 59 9 55.2 UNBK 102 -6.1 1.4 3.3 49 4187 0 5804 -413 -6.6 -14.3 -0.8 59 9 77.7 VJYBK 34.8 -3.2 0.9 -0.4 58 2304 0 5096 160 3.2 -20.5 7.1 18 3 43.5 YES 230.4 -9.6 1.8 -0.8 57 14186 1 13235 -600 -4.3 -26.7 -8.7 305 45 62.9

Cement ACC 934 -2.8 -1.2 -2.5 38 762.5 1 836 44 5.5 -22.5 21 78 12 57.6 ACEM 163.6 -1.1 4.4 -0.5 -300 4368 0 12900 808 6.7 -18.8 27.3 211 31 81.2 GRASIM 2142.5 -6.2 -3.5 -6.9 -131 218.1 1 682 46 7.2 -23.8 15.1 146 22 56.4 ICEM 45.5 -2.8 1.8 2.8 -432 984 0 4100 -56 -1.4 -23.8 -5.5 19 3 37.2 UTCEM 1423.3 -4.5 -2.9 -1.7 -148 278 1 921 78 9.3 -21.7 21.2 131 19 70.1

Chemical & Fertilizers CHMB 33 -3.8 2 3.6 61 1308 -0 6920 -156 -2.2 -18.5 0.1 23 3 42.5 TTCH 240.8 -3.6 -2.5 -2.9 61 230 0 702 18 2.6 1.9 9.3 17 3 16 UNTP 132.9 -3.3 -7 -3.4 57 1778 0 5214 -428 -7.6 -53.2 -1.5 69 10 33.1

Construction & Infrastructure GMRI 13.9 -1.1 3 4.5 36 26430 1 83290 1390 1.7 -16 4 116 17 78 IRB 61 -6.6 -2.6 -2.3 66 1308 -0 9766 -202 -2 -2.1 -0.1 60 9 45.7 JPA 34.5 -6 1.8 2.4 73 62908 0 70360 -2004 -2.8 -25.1 0 243 36 67.2 PUNJ 21 -6 -3 0 120 3632 0 15056 328 2.2 -20.1 5.5 32 5 34.8

Consumer CLGT 1209.8 -4.5 -1 -1.3 66 76.8 -0 119 -8 -6.3 0.4 17.6 14 2 31.2 DABUR 164.6 -2.6 5.1 2.9 46 1954 0 2222 -32 -1.4 -10.6 5.8 37 5 35.1 GDSP 244.9 0.1 6.7 7.2 97 393 1 699 133 23.5 18.1 36.5 17 3 25.3 HUVR 613.8 -3.7 3.4 0.8 7 2842.5 0 9553 -73 -0.8 -16.9 12.8 586 87 62.6 ITC 302.1 -5.7 1.4 -1.4 47 16670 1 26737 3684 16 -28.9 43 808 119 71.1 MCLR 265.9 -1.9 3.6 5.1 85 240 -0 2383 38 1.6 -19.8 5 63 9 42.8


Current (‘000)

OI (Y high)

Value (USD mn)



Current

(‘000) Change (Δ‘000)

TGBL 142.1 -2 4.1 2.9 35 2932 0 6200 -330 -5 -13 -8 88 13 24.4 UNSP 2291.6 0.2 10.8 7.8 61 2242.4 1 5936 121 2.1 -11 3.3 1360 201 39.2

Engineering & Capital Goods BHEL 115.7 -2.2 1.3 -1.3 -294 16928 1 24454 288 1.2 -18.3 2 283 42 53 CRG 81.8 -5.8 4.9 -0.2 55 4296 0 5848 116 2 -37.8 8.9 48 7 32.6 LT 690.2 -5.7 -2.1 -4.7 -60 6154.5 1 8510 555 7 -18.5 21.5 587 87 79.9 SIEM 420.9 -2.5 -1.7 -1.4 33 359.5 0 704 16 2.3 10.6 17.9 30 4 53 VOLT 64.4 -7.5 -4.2 -4.5 55 3624 1 3624 96 2.7 0.9 28.5 23 3 24.7

IT FTECH 108.1 -3.1 -23.7 -23.3 -322 1850 -1 2226 -22 -1 5.8 63 24 4 86.6 HCLT 1030.7 -1.4 5.2 1.3 67 1642.5 -0 3781 -47 -1.2 -18.7 6.2 390 58 80.2 HEXW 132.3 1.6 3.1 2.8 84 7152 2 5992 624 11.6 -17.7 21.1 79 12 26.9 INFO 3051.2 -1.4 -2.2 -2 58 1232.6 0 2592 116 4.7 -40.2 5.9 791 117 42 OFSS 2989.3 -0.9 3.9 3.3 74 14.3 -0 154 3 1.7 -17.5 18.3 46 7 16.1 TCS 1993.6 -1.8 4.6 2.5 -38 2699.8 0 8824 -98 -1.1 -11.4 8.3 1759 260 88.6 TECHM 1406.3 1.5 2.4 3 42 2184.3 2 2347 47 2 -0.4 22 330 49 49 WPRO 483.6 -1.1 2.3 2.3 90 3238.5 1 4942 418 9.2 -7.7 7.7 239 35 82.2

Media DITV 40.8 -4.2 -3.1 -3.4 86 4996 1 18856 464 2.5 -19.4 3 77 11 64.7 SUNTV 395.5 -5.5 8.4 1.6 25 908.5 0 1094 -1 -0.1 -37.5 -0.9 43 6 23.1 Z 223.6 -5.5 1.5 -0.4 54 2122 0 4051 122 3.1 -26.5 1.5 91 13 36.8

Metals & Mining COAL 257 1.2 1 2.6 -155 4615 1 5650 766 15.7 -18.6 19.1 145 21 68.3 HNDL 105.1 -4.4 2.6 -1.8 62 32204 0 24512 -1268 -4.9 -13.8 7.3 258 38 50.2 HZ 118.2 -5.7 -0.3 -2 77 2038 0 2448 -168 -6.4 -4.9 13.3 29 4 55.1 JSP 219.9 -3.8 -7.9 -9.7 14 5938 0 9114 221 2.5 -21.3 4.3 200 30 66.5 JSTL 527.5 -6.1 -1.4 -7.5 72 3633.5 1 7596 -92 -1.2 -13.3 1.2 401 59 66 NMDC 114.8 -4.5 -1.2 -4.4 -259 5084 -0 14772 -6 -0 -26.4 7.4 170 25 31.6 SAIL 46.3 -3.1 -2.3 -1 65 13520 1 14160 284 2 -7.6 7.5 66 10 43.2 SESA 168.9 -5.1 0.4 -11.8 -840 21412 1 35048 -104 -0.3 7.2 12.1 592 88 99.7 TATA 282.4 -3 0.9 1.3 39 22706 0 15723 -1066 -6.3 -20 3.9 444 66 54.1

Oil & Gas BPCL 257.7 -4.1 -3.6 -4.6 -347 2744 0 3417 41 1.2 -18.3 17.7 88 13 50.6 CAIR 325.5 0.7 -0.1 0.2 48 5448 2 6905 -209 -2.9 -21.3 2.9 225 33 28.6 GAIL 294.4 -0.6 4.4 2 -208 1510 0 3399 316 10.3 -15.3 26.2 100 15 35.4 GUJS 48.5 -3.3 -4.2 -4.6 -112 272 0 2568 12 0.5 -5.5 -0.6 12 2 39.5 HPCL 166.2 -3.3 1.5 1.8 51 2160 -0 7206 -269 -3.6 -8.6 -0.8 120 18 73


Current (‘000)

OI (Y high)

Value (USD mn)



Current

(‘000) Change (Δ‘000)

IGL 259 -1.7 -0.6 2.3 70 450 -0 1750 -38 -2.1 -32.3 -10.2 45 7 55.1 IOCL 208.2 -2 2 -0.7 65 780 0 2094 25 1.2 -4.1 4.8 44 6 46.3 ONGC 251.4 -0.7 3.2 0.9 14 7940 1 10428 858 9 -27.7 9.7 262 39 62.8 PLNG 121.8 -2.2 3.5 2.2 62 614 0 1354 22 1.6 -10.2 4.5 16 2 23.8 RIL 836.1 -5.8 3 -1.1 61 7717 0 8397 286 3.5 -30.7 34.4 702 104 47.6

Realty DLFU 128.1 -7.2 -3.1 -2.4 59 17034 0 33387 -337 -1 -14.7 -0.2 428 63 81.1 HDIL 32.2 -3.9 5.2 -3.2 -748 8224 0 22980 968 4.4 -36.5 8.7 74 11 48.9 IBREL 56.2 -8 2.4 0.8 45 11348 1 10692 -612 -5.4 -26.3 -2.7 60 9 27.8 UT 16.4 -6.8 2.2 1.6 93 29848 0 61888 -728 -1.2 -14.4 -0.2 101 15 45.4

Sugar SHRS 16.4 -8.9 7.9 7.2 123 15066 -0 31392 -315 -1 -15.5 5 51 8 45.5

Telecom BHARTI 287 -5.4 -0.4 -4 72 6823 1 10472 955 10 -27.1 15.2 301 44 51.4 IDEA 151.1 -4.2 -0.7 -4.7 67 7986 -0 10084 -112 -1.1 -7.6 20.7 152 23 65.6 RCOM 125.6 -3.6 12.8 4.2 -44 80712 0 34384 -2084 -5.7 -10.4 3.4 432 64 37.8 TCOM 164.9 -2.7 -1.4 -2.4 126 551 -0 4825 39 0.8 -5.2 3.5 80 12 90.4

Textile ARVND 78.8 -1.6 5.2 0.8 25 4332 1 2812 -32 -1.1 -14.6 1.1 22 3 34.6 CENT 211.6 -7.4 2.2 -1.5 52 2528 0 4678 -92 -1.9 -6.2 0.1 99 15 66

Conglomerate ABNL 1071.6 -6.5 3.9 0.3 64 242 0 391 -12 -2.9 -27.9 -10.8 42 6 20.7 ADE 134.8 -4.5 -8.1 -10.3 63 3241 -0 9228 -303 -3.2 -1.6 20.3 124 18 96.8

HealthCare ARBP 184.4 -0.2 2.8 1.8 90 8240 1 9648 102 1.1 -27.6 10.6 178 26 61.7 BIOS 342.6 -2.9 -1.7 -1.9 72 1069 0 1616 -32 -1.9 -7.2 9.9 55 8 38.3 CIPLA 409.3 -2.7 2.4 2.8 76 2578 0 6362 150 2.4 -13.7 3.2 260 38 46.7 DIVI 965 -4.2 0.7 0.8 117 155.8 0 332 -23 -6.5 -6.9 10.1 32 5 26.4 DRRD 2217.1 -2.9 2 -1.7 48 433.1 0 794 9 1.1 -26.1 27.1 176 26 53 LPC 838.6 1.8 9 3.7 -21 3045.5 1 2309 -216 -8.6 -23.3 4 194 29 64.4 OPTC 23.7 -7.8 -1.7 -2.3 21 1672 0 3924 -400 -9.3 -19.4 0.2 9 1 26.7 RBXY 411.5 -5.4 -1.8 -1.4 73 5492 -0 6088 -134 -2.1 -20.3 -4.3 251 37 75.6 SUNP 511.5 -3.1 1.3 0.1 -24 2539.5 1 6107 136 2.3 -29.9 5.4 312 46 64.3

Power Utilities ADANI 32.4 -4.7 -10.9 -5.5 -77 4968 0 14472 520 3.7 -26.5 2.2 47 7 58.1


Current (‘000)

OI (Y high)

Value (USD mn)



Current

(‘000) Change (Δ‘000)

CESC 304.7 -2.7 2.4 -0.1 35 226 1 435 1 0.2 -15.5 6.1 13 2 10.9 JPVL 12.6 -5.6 1.6 0.4 40 4096 1 16048 -1056 -6.2 -36 -8.3 20 3 52.5 JSW 37.9 -6.1 2.3 -0.7 93 1328 -0 14836 -236 -1.6 -26 -0.1 56 8 47.3 NATP 126.3 -2.8 -0.2 -3.3 -133 4600 0 11886 1360 12.9 -20.8 34.6 150 22 29.4 NHPC 16.1 -1.5 0.6 -2.1 94 2230 -0 25170 280 1.1 -14.6 -0.1 41 6 9.7 PTCIN 44.5 -3.3 5.3 5.1 57 1076 0 1896 -100 -5 -13.3 1.9 8 1 33 PWGR 94.3 -3.9 0.2 -2.9 -136 3766 1 7198 794 12.4 -33.8 41.5 68 10 39.4 RELI 331.3 -6.7 -1.1 -2.2 67 8730 0 4605 115 2.6 -18.3 10.2 153 23 55.1 RPWR 66.2 -6.1 -0.8 -1.2 68 18272 0 22280 -976 -4.2 -9.9 6.1 147 22 34 TPWR 72.3 -3.5 -6.3 -6.1 56 4232 0 7856 580 8 -36.2 26.5 57 8 47.1

Retail & Consumer BATA 808.5 -3 2.4 1.7 55 448 0 509 -5 -0.9 -34.6 -4.9 41 6 20.6 TTAN 213.6 -7.8 0.6 -1.5 -5 3499 1 10740 488 4.8 -5.6 3.4 229 34 84.2

Misc APNT 397.1 -5.9 1 -1.5 -26 2756.3 1 4915 440 9.8 -13.9 22 195 29 86.1 HAVL 601 -2.5 2.9 -3.3 26 437.5 -0 910 -1 -0.1 -11.5 5.3 55 8 49.2 IH 45.2 0.7 4.5 0.7 112 320 -0 5284 -64 -1.2 -12.3 0 24 4 42.4 JI 50.5 -4.3 -1.5 -4.9 -10 1472 -0 12428 -88 -0.7 -9.4 5.9 63 9 51.9 JUBI 1049.9 -1.1 -2 1.3 63 606.3 1 1981 24 1.2 -6.9 4.1 208 31 86.3 MSEZ 123.2 -6.3 -0.4 -3.6 103 2472 2 2494 160 6.9 -15.5 11.3 31 5 23.5 PF 68.8 -5.7 0.4 0.1 88 2656 0 6186 -4 -0.1 -15.5 8.1 43 6 35 RAYMOND 184.6 -5.7 0.5 -1.4 90 776 0 3958 67 1.7 -2.2 3.5 73 11 61.8


Appendix Analyst Certification The views expressed in this Research Report accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s) in this report. The research analysts are bound by stringent internal regulations and also legal and statutory requirements of the Securities and Exchange Board of India (hereinafter “SEBI”) and the analysts’ compensation are completely delinked from all the other companies and/or entities of Anand Rathi, and have no bearing whatsoever on any recommendation that they have given in the Research Report. The research analysts, strategists, or research associates principally responsible for the preparation of Anand Rathi Research have received compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors, firm revenues and overall investment banking revenues.



Ratings Guide Buy Hold Sell Large Caps (>US$1bn) >15% 5-15% <5% Mid/Small Caps (<US$1bn) >25% 5-25% <5% Anand Rathi Research Ratings Distribution (as of 28 Feb 2013) Buy Hold Sell Anand Rathi Research stock coverage (184) 65% 27% 8% % who are investment banking clients 4% 2% 0% Other Disclosures This report has been issued by ARSSBL which is a SEBI regulated entity, and which is in full compliance with all rules and regulations as are applicable to its functioning and governance. The investors should note that ARSSBL is one of the companies comprising within ANAND RATHI group, and ANAND RATHI as a group consists of various companies which may include (but is not limited to) its subsidiaries, its affiliates, its group companies who may hold positions, views, stakes and may service the companies covered in this report independent of ARSSBL. Investors are cautioned to be aware that there could arise a potential conflict of interest in the views held by ARSSBL and other companies of Anand Rathi who maybe affiliated, connected or catering to the companies mentioned in the Research Report; even though, ARSSBL and Anand Rathi are fully complaint with all procedural and operational regulatory requirements. Thus, investors should not use this as a sole basis for making their investment decision and should consider the recommendations mentioned in the Research Report bearing in mind the aforementioned.














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