styrolution 1q cy 2013

7/30/2019 Styrolution 1Q CY 2013

1/14

Please refer to important disclosures at the end of this report 1

Y/E Dec. (` cr) 1QCY13 4QCY12 % chg (qoq) 1QCY12 % chg (yoy)Total operating income 242 255 (5.0) 236 2.6EBITDA 23 24 (1) 23 3

EBITDA Margin (%) 9.7 9.3 40bp 9.7 (0)bp

Adj. PAT 15 15 1 16 (6)Source: Company, Angel Research

Styrolution ABS (Styrolution) reported a poor set of numbers for 1QCY2013.

Top-line growth for the quarter was flat at 2.6% yoy to `242cr, 6.9% lower than

our estimate of `260cr. The poor performance is attributable to the current

slowdown in the economy which has subdued the growth of user industries. The

EBITDA was higher by 3.0% yoy to `23cr, and 6.13% lower than our expectation,

owing to poor top-line growth. The EBITDA margin for the quarter remained

constant yoy at 9.7%, better than our estimate of 9.6%. The company reported a

net profit of `15cr, 15% lower than our estimates of `18cr.

Persisting short supply coupled with capacity expansion to boost growthStyrolution had expanded its capacity of ABS and SAN. This provides the company

an opportunity to reap benefits owing to domestic ABS demand supply gap (met

by imports) which has persisted for long and continues to exist. In addition to

capacity expansion the company has come up with many tailor made productstaking advantage of ABS flexibility of composition and structure, which allows its

use in diverse applications.

Outlook and valuation: We expect Styrolutions revenue to post a CAGR of 11.2%over CY2012-14E to `1,223cr in CY2014E on the back of consistent

developments by the company. The EBITDA and net profit are expected to post a

CAGR of 11.1% and 11.8% respectively over CY2012-14E. With recent correction

in the stock price, Styrolution is available at an attractive valuation of 11.1x PE

and EV/Sales of 0.7x for CY2014E. As we rollover to CY2014E, we continue tomaintain our Buy recommendation on the stock with a revised target price of`617, based on a target PE of 14x, providing 26% upside from current levels.Key financials (Standalone)

Y/E Dec. (` cr) CY2010 CY2011 CY2012E CY2013E CY2014ENet sales 742 825 989 1,068 1,223% chg 32.8 11.2 19.8 8.1 14.4

Adj. net profit 70 54 62 67 78% chg 43.0 (22.9) 14.8 7.9 15.8

OPM (%) 15.2 9.9 9.6 9.6 9.6EPS (`) 39.8 30.7 35.3 38.1 44.1

P/E (x) 12.3 15.9 13.9 12.9 11.1

P/BV (x) 2.6 2.3 2.0 1.7 1.5

RoE (%) 23.1 15.1 15.2 14.4 14.7

RoCE (%) 50.7 17.9 16.9 17.0 18.5

EV/Sales (x) 1.0 1.0 0.9 0.8 0.7

EV/EBITDA (x) 6.3 10.1 9.2 8.3 6.9

Source: Company, Angel Research

BUYCMP `489

Target Price `617

Investment Period 12 Months

Stock Info

Sector

Net Debt (`cr) 19

Bloomberg Code

Shareholding Pattern (%)

Promoters 87.3

MF / Banks / Indian Fls 2.3

FII / NRIs / OCBs 0.9

Indian Public / Others 9.5

Abs.(%) 3m 1yr 3yr

Sensex (3.0) 11.9 10.8

STYR (26.5) (33.0) 42

Nifty 5,904

Reuters Code STYR.BO

STAL.IN

Avg. Daily Volume 1,469

Face Value (`) 10

BSE Sensex 19,388

52 Week High / Low 847 / 470

Petrochemicals

Market Cap (`cr) 860

Beta 0.5

Twinkle GosarTel: 022- 3935 7800 Ext: [email protected]

Styrolution ABS (India)Performance Highlights

1QCY2013 Result Update | Petrochemicals

April 29, 2013


2/14

Styrolution ABS | 1QCY2013 Result Update

April 29, 2013 2

Exhibit 1:1QCY2013 performance (Standalone)

Y/E Dec. (` cr) 1QCY13 4QCY12 % chg (qoq) 1QCY12 % chg (yoy) CY12 CY11 % chgTotal operating income 242.1 254.9 (5.0) 235.8 2.6 989.4 826.4 19.7Net raw material 179.3 187.3 (4.3) 179.5 (0.1) 746.3 619.7 20.4(% of Sales) 74.1 73.5 76.1 75.4 75.0

Employee cost 7.2 6.9 4.0 6.7 7.6 27.5 25.8 6.8

(% of Sales) 3.0 2.7 2.8 2.8 3.1

Other Expenses 32.1 37.0 (13.1) 26.9 19.7 121.4 99.8 21.6

(% of Sales) 13.3 14.5 11.4 12.3 12.1

Total expenditure 218.6 231.2 (5.4) 213.0 2.6 895.1 745.3 20.1EBITDA 23.4 23.7 (1.0) 22.8 2.6 94.3 81.1 16.3EBITDA Margin (%) 9.7 9.3 40bp 9.7 (0)bp 9.5 9.8 (28)bp

Interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -

Depreciation 3.2 3.3 (0.3) 3.3 (0.9) 13.1 13.9 (5.8)

Other income 2.2 2.1 7.0 4.2 (48.0) 9.7 10.3 (6.4)

PBT 22.4 22.5 (0.3) 23.8 (5.9) 90.9 77.5 17.2(% of Sales) 9.2 8.8 10.1 9.2 9.4

Tax 7.3 7.6 (3.6) 7.7 (5.2) 30.0 23.5 27.5

(% of PBT) 32.6 33.7 32.4 33.0 30.3

Adjusted PAT 15.1 14.9 1.3 16.1 (6.2) 60.9 54.0 12.7PATM (%) 6.2 5.8 6.8 6.2 6.5


Exhibit 2:Actual v/s Angel Estimates

Actual v/s Angel's Estimates Actual (` cr) Estimate (` cr) % variationTotal Income 242 260 (6.9)EBITDA 23 25 (6)

EBITDA Margin 9.7 9.6 (8)bp

Adjusted PAT 15 18 (15)Source: Angel Research

For 1QCY2013, the top-line reported a flat growth of 2.6% yoy to `242cr, 6.9%

lower than our estimate of `260cr. The poor performance is attributable to the

current slowdown in the economy which has subdued the growth of Styrolutions

user industries like automobile and home appliances. The EBITDA was higher by

3.0% yoy to `23cr, 6.13% lower than our expectation, owing to poor top-line

growth. The EBITDA margin for the quarter remained constant yoy at 9.7%, better

than our estimate of 9.6%. The company reported a net profit of `15cr, 15% lower

than our estimates of `18cr.


3/14


April 29, 2013 3

Exhibit 3:Sluggish user industry impacts companys growth


Exhibit 4:EBITDA and EBITDA margin


Investment arguments

Capacity expansion to compliment unfulfilled ABS demand

The gap between domestic demand for ABS vis-a-vis supply has persisted for long

and the same still continues to exist. The unfulfilled demand is being met by

imports. CRISIL Research estimates that the supply of ABS would grow at 17%

CAGR in order to meet the demand growth of 10% CAGR during CY2010-15E.

Styrolution has expanded its capacity of ABS from 60,000TPA in 2010to

80,000TPA in 2011 and has plans to extend capacity further to 110,000TPA in

CY2013. This extended capacity will enable Styrolution to tap the unfulfilled

demand in the industry. Assuming the market share of Styrolution to remain

constant at 60%, volumes for ABS are likely to grow by ~12% over this period.

Exhibit 5:Unfulfilled domestic demand owing to demand supply gap


Tailor-made products as per market and consumer demand

Considering the rising demand for polymers in varied industries, Styrolution has

been consistently expanding its capacity and simultaneously co-polymerising ABS

ie, changing polymer composition and blending. The company has come up with

many tailor made products taking advantage of ABS flexibility of composition and

structure, which allows its use in diverse applications.

201

206

208

211

236

236

263

255

242

20.714.7 12.2 (0.2)

17.3 14.4

26.520.7 2.6

(5)

0

5

10

15

20

25

30

0

50

100

150

200

250

300

1QCY11

2QCY11

3QCY11

4QCY11

1QCY12

2QCY12

3QCY12

4QCY12

1QCY13

(%)

(`cr)

Revenue ( LHS) Revenue growth (RHS )

31

24

12

13

23

14

33

24

23

15.4

11.8

6.0 6.4

9.7

6.1

12.7

9.39.7

0

3

6

9

12

15

18

0

10

20

30

40

1QCY11

2QCY11

3QCY11

4QCY11

1QCY12

2QCY12

3QCY12

4QCY12

1QCY13

(%)

(`cr)

EBITD A (LH S) EBITD A M argin (RH S)

0

20

40

60

80

100

120

140

160

180

CY2008 CY2009 CY2010 CY2011 CY2012 CY2013E CY2014E

('000TPA)

ABS Production ABS import ABS demand


4/14


April 29, 2013 4

Exhibit 6:Product development

Product Development End use- productBlend of ABS/PMMA LCD TV market

Low gloss ABS Bus roof and automotive body interior

Nylon/ABS blend Indian automotive markets

ESCR grade Extrusion grade ABS Refrigerator application

Glass filled ABS AC blower application

Source: Company

Exhibit 7:Application Industry Composition

Source: Company

Potential delisting candidate and high return ratios

Styrolution, with a 87.3% promoter holding, is considered as a potential de-listing

candidate, since the June 2010 amendment of Securities Contract Act mandates

listed companies to have a minimum of 25% of public shareholding by June 2013.

Moreover, the company has successfully delivered handsome returns of more than

15% on equity as well as invested capital over last five years, thereby assuring

robust returns on one hand and high stock price on the other. If the company goes

for de-listing, it would be a win-win situation on both the fronts.

HomeAppliances

30%

Automobiles

28%Telecom

5%

Electrical&electronics

7%

Businessmachineofficeautomation

8%

Luggage&busbody4%

Stationary/helmet

9%

Textiles

3%

Others

6%


5/14


April 29, 2013 5

Financials

Exhibit 8: Key assumptions

Particulars (%) CY2013E CY2014ETotal Volume Growth 5.7 6.0

Total Realisation Growth 8.1 14.4

Weighted Change in RM 1.0 4.0

Source: Angel Research

CRISIL Research has estimated the supply of ABS to grow at a 17% CAGR during

CY2010-15E. Considering the current slowdown in the economy, we have

assumed the total volume to grow at 5.7% yoy and 6.0% yoy in CY2013E and

CY2014E, respectively.

On the back of increased feedstock prices, raw-material prices are assumed to

grow, which would be passed on to the consumers by price hikes. Hence, theEBITDA margin is expected to remain constant at 9.6% in both CY2013E and

CY2014E.

Exhibit 9: Change in estimates

Y/E Dec. Earlier estimates Revised estimates % changeCY2013E CY2014E CY2013E CY2014E CY2013E CY2014ENet Sales (` cr) 1,069 1,223 1,069 1,223 0.0 0.0EBITDA Margin (%) 9.7 9.7 9.6 9.6 9bp (18)bp

EPS (`) 40 47 38 44 (4.5) (5.2)Source: Angel Research

Net sales to grow at 11.2% CAGR over CY2012-14E

Considering the capacity expansion and other recent developments, coupled with

revived in demand for ABS from the automobile and home appliances sectors, the

companys net sales are expected to grow at a CAGR of 11.2% over CY2012-14E

to `1,223cr in CY2014E.

Exhibit 10: Capacity expansion, revival in user industry to drive growth


559

742

825

989

1,0

68

1,2

23

(7.4)

32.8

11.2

19.88.1

14.4

(10)

(5)

0

5

10

15

20

25

30

35

0

200

400

600

800

1000

1200

1400

CY2009 CY2010 CY2011 CY2012E CY2013E CY2014E

(%)

(`

cr)

Net Sales (LHS) Net Sales growth (RHS)


6/14


April 29, 2013 6

EBITDA to post a CAGR of 11.1% over CY201214E

On the back of increased sales aided by operational efficiency, the EBITDA for the

company is expected to register a CAGR of 11.1% over CY2012-14E to `117cr in

CY2014E. However, high feedstock prices coupled with substantial rupee

depreciation are expected to raise the manufacturing cost, which in turn will be

passed on to the customers by price hike. Hence, we expect the margin to remain

constant at 9.6% in CY2013E and CY2014E.

Exhibit 11: EBITDA margin to normalise


Owing to stable operating performance, we expect net profit to post a CAGR of

11.8% over CY2012-14E to `78cr in CY2014E and net profit margin to remainconstant at 6.3%.

Exhibit 12: PAT growth on an uptrend


86 113 82 95 103 117

15.4

15.2

9.99.6

9.6

9.6

0

3

6

9

12

15

18

0

20

40

60

80

100

120

140


(%)

(`c

r)

EBITDA (LHS) EBITDA margin (RHS)

49 70 54 62 67 78

8.8

9.4

6.5 6.36.3

6.3

0

1

2

3

4

5

6

7

8

9

10

0

10

2030

40

50

60

70

80

90


(%)

(`cr)

PAT (LHS) PAT margin (RHS)


7/14


April 29, 2013 7

Risks

Raw-material supply and price volatility

Acrylonitrile, butadiene and styrene are the key raw materials for production ofABS and SAN. About 81% of the total raw-materials used for production are

imported. Supply of these raw materials is quite tight and inflexible. Moreover,

their prices have been fluctuating in a wide range, which in turn is likely to

negatively affect the companys margins. On the back of high feedstock prices,

prices for ABS are also expected to rise.

Exhibit 13: Butadiene and Styrene price trend

Source: Bloomberg

Exhibit 14: Acrylonitrile price trend

Source: Bloomberg

0

5

10

15

20

2530

35

40

45

0

10

20

30

40

5060

70

80

90

Sep-0

9

Mar-10

Sep-1

0

Mar-11

Sep-1

1

Mar-12

Sep-1

2

Mar-13

(`/pound)

Butadine (LHS) Styrene (RHS)

75

85

95

105

115

125

135

145

155

Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13

('000`/MT)


8/14


April 29, 2013 8

Exchange rate fluctuationsRaw materials form nearly 80% of the total operating cost. 81% of the raw

materials are imported. The exchange rate fluctuation can have an adverse effect

on cost and, thereby the margins, so is a risk factor.

Exhibit 15: INR-USD exchange rate

Source: Bloomberg

Imports cheap as compared to domestic ABS

Imported ABS is available at a cheaper rate as compared to domestically available

ABS. Though the percentage price difference between international and domestic

ABS has narrowed, there is still a gap of around 18%.

Exhibit 16: International and domestic price variation of ABS

Particulars 2006 2007 2008 2009 2010 2011International ABS price (`) 80,745 83,596 83,820 92,905 84,773 107,686

Styrolution ABS price (`) 96,838 104,262 108,822 122,879 101,097 127,226

Price difference (%) 20 25 30 32 19 18

Source: Company, Department of Commerce

Competition

In the domestic duopolistic market, Styrolution holds 60% market share in ABS

resins segment and 68% in SAN resins segment, while the remaining is held by

Bhansali Engg Ltd.

Exhibit 17: Relative Valuation

Y/E (TTM) Net Sales(`cr) OPM(%) PAT(`cr) EPS(`) RoE(%) P/E(x) P/BV(x) EV/Sales (x)Styrolution ABS^ 995 9.6 62 35.3 13.8 13.8 1.9 0.9

BASF India* 3,873 6.0 115 26.6 10.0 21.3 2.1 0.7

Clariant Chemicals^ 1,109 12.8 94 35.4 17.2 13.1 2.3 1.7

Source: Company, Capital Line, *TTM ended Dec12 quarter, ^TTM ended Mar13 quarter

40

42

44

46

48

50

52

54

56

58

Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13


9/14


April 29, 2013 9

Outlook and valuation

We expect Styrolutions revenue to post a CAGR of 11.2% to `1,223cr over

CY2012-14E on the back of consistent expansion plans of the company coupled

with revival in user industry. EBITDA is expected to grow at 11.1% CAGR to `117crin CY2014E. The rise in manufacturing cost due to high feedstock prices and

currency depreciation is expected to be passed on to the consumers by price hike,

thereby offsetting any negative impact on EBITDA margin. Hence, EBITDA margin

is expected to remain constant at 9.6% in CY2013E and CY2014E. The net profit is

expected to post a CAGR of 11.8% to `78cr in CY2014E while margins are to

remain stable at 6.3% owing to stable operating performance. After the recent

correction in the stock price, Styrolution is available at an attractive PE valuation of

11.1x and 0.7x EV/Sales for CY2014E. As we rollover to CY2014E, we maintainour Buy recommendation on the stock with a revised target price of `617 based ontarget PE of 14.0x and implied EV/Sales of 0.9x for CY2014E earnings.Exhibit 18: One year forward PE


Company Background

Styrolution (name changed from INEOS ABS India Ltd. effective from

March 1, 2012) is a leading manufacturer of an engineering plastic namely

styrene monomer, polystyrene and ABS. The company is a 50/50 joint venturebetween BASF and INEOS ABS formed by combining the styrenic business of two

of the largest global chemical companies. In the domestic market, Styrolution is the

market leader and holds 60% market share in ABS resins segment and 68% in

SAN resins segment.

0100

200

300

400

500

600

700

800

900

Apr-08

Oct-08

Apr-09

Oct-09

Apr-10

Oct-10

Apr-11

Oct-11

Apr-12

Oct-12

Apr-13

(`)

Price 2.5x 8.5x 14.5x 20.5x


10/14


April 29, 2013 10

Profit and Loss (Standalone)

Y/E December (` cr) CY2010 CY2011 CY2012E CY2013E CY2014EGross sales 816 910 1,090 1,178 1,348

Less: Excise duty 74 84 101 109 125Net Sales 742 825 989 1,068 1,223

Other operating income - - - - -Total operating income 742 825 989 1,068 1,223% chg 32.8 11.2 19.8 8.1 14.4

Net Raw Materials 522 620 750 814 932

% chg 44.8 18.8 21.0 8.6 14.5

Other Mfg costs 36 41 46 45 52

% chg 5.7 12.9 10.7 (0.6) 14.4

Personnel 20 24 27 30 34

% chg 16.1 16.1 16.2 8.1 14.4

Other 51 59 71 77 88

% chg (15.9) 15.9 19.8 8.1 14.4

Total Expenditure 629 744 894 965 1,105

EBITDA 113 82 95 103 117% chg 31.0 (27.6) 16.4 8.2 14.1

EBITDA Margin 15.2 9.9 9.6 9.6 9.6

Depreciation & Amortisation 14 14 14 16 16

EBIT 99 68 82 87 102% chg 38.0 (31.5) 20.3 7.2 16.0

(% of Net Sales) 13.3 8.2 8.3 8.2 8.3

Interest & other Charges 2 2 1 - -

Other Income 5 11 11 12 13

(% of Net Sales) 0.7 1.4 1.1 1.1 1.1

Recurring PBT 97 66 81 87 102% chg 37.9 (31.9) 22.0 8.3 16.0

PBT (reported) 103 78 92 99 115Tax 33 24 30 32 37

(% of PBT) 31.8 30.3 32.6 32.6 32.6

PAT (reported) 70 54 62 67 78Extraordinary Expense/(Inc.) (0) (0) - - -

ADJ. PAT 70 54 62 67 78% chg 43.0 (22.9) 14.8 7.9 15.8

(% of Net Sales) 9.4 6.5 6.3 6.3 6.3

Basic EPS (`) 40 31 35 38 44Fully Diluted EPS (`) 40 31 35 38 44% chg 43.0 (22.9) 14.8 7.9 15.8


11/14


April 29, 2013 11

Balance Sheet (Standalone)

Y/E December (` cr) CY2010 CY2011 CY2012 CY2013E CY2014ESOURCES OF FUNDSEquity Share Capital 18 18 18 18 18Preference Capital - - - - -

Reserves& Surplus 317 362 416 475 544

Shareholders Funds 334 380 434 493 562Minority Interest - - - - -Total Loans - 131 67 67 67

Deferred Tax Liability (Net) 21 18 17 17 17

Other long term liabilities - 0 0 0 0

Long term provisions - 15 15 15 15

Total Liabilities 356 544 533 592 661APPLICATION OF FUNDSGross Block 318 335 362 372 384

Less: Acc. Depreciation 181 195 209 224 240

Net Block 136 140 153 148 144Capital Work-in-Progress 12 - - - -

Lease adjustment - - - - -

Goodwill - - - - -

Investments 93 101 17 21 25Long Term Loans and advances - 35 28 43 49

Other non-current assets - 0 0 0 0

Current Assets 281 318 439 492 572

Cash 60 63 31 57 87

Loans & Advances 41 35 136 147 169

Inventory 71 95 95 98 100

Debtor 109 124 175 189 216

Other current assets - 1 1 1 1

Current liabilities 166 51 104 112 128

Net Current Assets 115 268 335 380 444Mis. Exp. not written off - - - - -

Total Assets 356 544 533 592 661


12/14


April 29, 2013 12

Cash Flow (Standalone)

Y/E December (` cr) CY2010 CY2011 CY2012 CY2013E CY2014EProfit Before Tax 103 78 92 99 115

Depreciation 14 14 14 16 16Change in WC 16 (330) (99) (20) (34)

Other income (5) (11) (11) (12) (13)

Direct taxes paid (33) (24) (30) (32) (37)

Cash Flow from Operations 95 (273) (34) 51 46(Incr)/ Decr in Fixed Assets (8) (5) (27) (11) (11)

(Incr)/Decr In Investments (21) (43) 91 (18) (10)

Other income 5 11 11 12 13

Cash Flow from Investing (24) (37) 75 (17) (8)Issue of Equity/Preference - 0 - - -

Incr/(Decr) in Debt (2) 142 (65) - -

Dividend Paid (Incl. Tax) (7) (7) (8) (8) (8)

Others (39) 179 - - -

Cash Flow from Financing (48) 314 (73) (8) (8)Incr/(Decr) In B/S Cash 22 4 (32) 25 30

Opening Cash balance 37 60 63 31 57Closing cash balance 60 63 31 57 87


13/14


April 29, 2013 13

Key Ratios (Standalone)

Y/E December CY2010 CY2011 CY2012 CY2013E CY2014EValuation Ratio (x)P/E (on FDEPS) 12.3 15.9 13.9 12.9 11.1

P/CEPS 10.2 12.7 11.4 10.4 9.2

P/BV 2.6 2.3 2.0 1.7 1.5

Dividend yield (%) 0.8 0.8 1.0 1.0 1.0

EV/Net sales 1.0 1.0 0.9 0.8 0.7

EV/EBITDA 6.3 10.1 9.2 8.3 6.9

EV / Total Assets 2.0 1.5 1.6 1.4 1.2

Per Share Data (`)EPS (Basic) 40 31 35 38 44

EPS (fully diluted) 40 31 35 38 44

Cash EPS 48 39 43 47 53DPS 4 4 4 4 4

Book Value 190 216 247 280 320

DuPont AnalysisEBIT margin 13.3 8.2 8.3 8.2 8.3

Tax retention ratio 0.7 0.7 0.7 0.7 0.7

Asset turnover (x) 3.8 2.2 2.0 2.1 2.2

ROIC (Post-tax) 34.6 12.5 11.4 11.5 12.5

Cost of Debt (Post Tax) - - - - -

Leverage (x) (0.5) (0.1) 0.0 (0.0) (0.1)

Operating ROE 18.8 11.4 11.9 11.2 11.5

Returns (%)ROCE (Pre-tax) 27.5 12.5 15.3 14.8 15.4

Angel ROIC (Pre-tax) 50.7 17.9 16.9 17.0 18.5

ROE 23.1 15.1 15.2 14.4 14.7

Turnover ratios (x)Asset TO (Gross Block) 2.3 2.5 2.7 2.9 3.2

Inventory / Net sales (days) 35 36 36 36 36

Receivables (days) 54 54 54 54 54

Payables (days) 96 92 96 95 94

WC cycle (ex-cash) (days) 27 90 112 110 107

Solvency ratios (x)Net debt to equity (0.5) (0.1) 0.0 (0.0) (0.1)

Net debt to EBITDA (1.3) (0.4) 0.2 (0.1) (0.4)

Int. Coverage (EBIT/ Int.) 55.0 42.1 102.0 - -


14/14


Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

DISCLAIMERThis 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 makesuch 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 reliablesources 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 thisdocument is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any wayresponsible 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. WhileAngel 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, pleaserefer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited andits affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement Styrolution ABS

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

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

Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)

styrolution 1q cy 2013

Documents