wipro - company update-edited accepted...

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

We recently attended Wipro’s analyst meet. The meet focused on the company’s strategy to build differentiation in selected segments in various industry verticals and service lines. The company maintained that investments to develop domain capabilities are going on to help drive medium-term growth. The senior management team indicated that the demand scenario remains volatile due to uncertainty across the globe but outsourcing/offshoring as a means of driving productivity as well as cost benefits remains crucial to clients. We believe Wipro is poised to outperform some of its peer companies due to the following reasons:

Strategy – To focus upon chosen areas in industry verticals and services: Wipro has chosen its growth strategy to revolve around focusing on selected few segments in terms of industry verticals and services. The company has identified four momentum industry verticals: 1) BFSI, 2) energy and utilities, 3) retail and 4) lifesciences and healthcare. These verticals all-together account for 65% of the company's revenue. Wipro has higher exposure (as a proportion of revenue) as compared to its peers in three out of the above-mentioned four momentum verticals.

Optimal margin levers in hand: Wipro has operating margin levers such as improving utilization level and increasing offshore revenue. Wipro’s utilization level is currently at 67.4%, which is at a historic low level since FY2008. The company has headroom to improve its utilization by ~300bp even if management does not want to run a tight ship. In addition, Wipro’s share of offshore revenue declined to 45.6% due to SAIC’s acquisition from 49% earlier (peers have offshore revenue above 50%). Increasing offshoring of revenue is on Wipro’s cards right now and could offer a cushion to its margins.

Outlook and valuation: Wipro emphasized its focus on profitable growth and aspirations to close the gap in profitability with peers. Early signs of restructuring yielding results are visible in terms of improvement in the deal pipeline, growth seen in the company’s focus industry verticals and increasing revenue from the company’s top clients. We expect Wipro’s revenue to post a CAGR of 13.7% over FY2012-14E, with EBITDA margin moving from 19.8% in FY2012 to 20.5% in FY2014. Over FY2012-14E, Wipro’s net profit is expected to post a CAGR of 15.2%, which is industry leading. We upgrade the stock to Buy with a target price of `452, valuing it at 15x FY2014E EPS of `30.1.

Key financials (Consolidated) Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E Net sales 27,124 31,099 37,525 43,150 48,541

% chg 6.2 14.7 20.7 15.0 12.5

Net profit 4,594 5,297 5,573 6,362 7,390

% chg 18.5 15.3 5.2 14.2 16.1

EBITDA margin (%) 21.9 21.2 19.8 20.0 20.5

EPS (`) 18.9 21.7 22.7 25.9 30.1

P/E (x) 20.8 18.1 17.3 15.2 13.1

P/BV (x) 4.4 4.0 3.4 2.9 2.5

RoE (%) 23.4 22.0 19.5 19.1 19.0

RoCE (%) 15.6 15.5 14.7 14.7 14.8

EV/Sales (x) 3.3 2.8 2.3 1.9 1.6

EV/EBITDA (x) 15.0 13.3 11.7 9.5 7.6 Source: Company, Angel Research

BUY CMP `394 Target Price `452

Investment Period 12 Months Stock Info

Sector

Bloomberg Code

Shareholding Pattern (%)

Promoters 78.4

MF / Banks / Indian Fls 3.4

FII / NRIs / OCBs 6.7

Indian Public / Others 11.5

Abs. (%) 3m 1yr 3yr

Sensex (4.1) (7.7) 10.7

Wipro (10.0) (10.1) 60.0

Face Value (`)

BSE Sensex

Nifty

Reuters Code

96,545

0.8

472/310

128,670

IT

Avg. Daily Volume

Market Cap (` cr)

Beta

52 Week High / Low

2

16,863

5,116

WIPR.BO

WPRO@IN

Ankita Somani +91 22 3935 7800 Ext: 6819

[email protected]

Wipro Company update – Poised to perform well

Company update | IT

June 12, 2012

Wipro | Company Update

June 12, 2012 2

Strategy – To focus upon chosen areas in industry verticals and services lines

The company has chosen its growth strategy to revolve around focusing on selected few segments in terms of industry verticals and services. The company has chosen 138 clients as mega gamma accounts, which management believes have the potential to grow to US$50m+ in future. The company is also looking for growth by gaining market share amid the churn happening among vendors.

Industry verticals – Focus on BSFI, retail, energy and utilities and life sciences and healthcare

Wipro has identified four momentum industry verticals: 1) BFSI, 2) energy and utilities, 3) retail and 4) lifesciences and healthcare and seeks to drive stronger revenue growth by focusing on these key verticals. These verticals all together account for 65% of the company's revenue. Wipro has higher exposure (as a proportion of revenue) as compared to its peers in three out of the above-mentioned four momentum verticals. These three industry verticals are energy and utilities, retail and lifesciences and healthcare. BFSI – where the exposure of Wipro is less than its peers (as a proportion of revenue), as indicated by the managements of most IT companies, is seeing pressure in terms of IT spending, especially from investment banking clients. Wipro expects overall BFSI budgets to remain flat, or even see cuts, given the stressed financial institutions in the U.S. and Europe.

Management of all IT companies have indicated that IT spend in industry verticals such as retail and energy and utilities is expected to grow higher than the overall industry growth. Wipro’s revenue run-rate from the energy and utilities vertical is substantially higher than all its peers because of SAIC’s acquisition. Post the acquisition, Wipro's revenue from the energy and utilities industry vertical is ~100% higher than the next largest competitor in this space (Infosys).

Exhibit 1: Proportion of revenue from various industry verticals (%) – As of 4QFY2012 Infosys TCS Wipro HCL Tech

BFSI 34.3 42.2 14.9 24.0

Manufacturing and hi-tech 21.3 13.9 19.1 29.0

Retail 15.2 12.5 15.4 8.6

Energy and utilities 6.1 3.8 14.0 6.8

Lifesciences and healthcare 5.5 5.3 10.0 9.1

Source: Company, Angel Research


June 12, 2012 3

Exhibit 2: Revenue from energy and utilities industry vertical – 4QFY12


We expect the high growth trajectory in energy and utilities to continue because of trends such as: government-operated utilities such as electricity, gas and water supply in countries such as 1) the U.S., U.K., Australia and Japan being deregulated and opened up to competition and (2) entities seeking to improve efficiency, profitability and customer service.

Exhibit 3: Retail – Revenue growth trend


Exhibit 4: Energy and utilities – Revenue growth trend


Service lines – IMS driving growth

In terms of service lines, Wipro has the highest exposure for one of the fastest growing infrastructure management services (IMS). Managements of various IT companies are banking upon growth in this service line and expect it to grow higher than the industry’s average growth. IMS is the biggest segment within IT services, 2x bigger than ADM, which is the bread-and-butter business of Indian IT vendors. Deals from sourcing advisors in the IMS segment have increased in size and sourcing advisors’ ITO initiatives in Continental Europe has increased from 40% to 50%. Spend in IMS is driven by changing customer needs leading to simultaneous IT transformation, consolidation and standardization.

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June 12, 2012 4

Exhibit 5: Revenue from IMS service line – 4QFY2012


Exhibit 6: IMS – Revenue growth trend


Diversified geography-wise revenue portfolio

The Indian IT industry derives majority of its revenue from the U.S. Continental Europe is a large untapped opportunity for Indian IT companies. We believe the gradual opening up to offshoring by European countries besides the U.K., such as Germany and France, will ensure a higher proportion of revenue from Europe for the Indian IT sector.

Other than developed nations, emerging countries like Japan also present a big potential opportunity for Indian IT services companies. Japan has been a closed market, with enterprises focusing mainly on internal IT development. Japan comprises about 2% of Indian IT exports even though companies such as TCS and Wipro have been in the geography for several years. Wipro as well as TCS is attempting to gain a foothold in Japan.

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June 12, 2012 5

As Indian vendors ramp-up their presence in China, they can target the Japanese geography from China and eat into the 55% Chinese market share. Wipro’s exposure to emerging nations is higher than its peers, which put Wipro in a profitable zone to capture IT spending market share as incremental growth is expected to come from MNCs trying to expand their footprints globally.

Exhibit 7: Proportion of revenue from various industry verticals (%) – LTM Infosys TCS Wipro HCL Tech

U.S. 63.9 56.4 52.1 56.5

Europe 21.9 25.3 27.7 27

Rest of the World 14.2 18.3 20.2 16.5

India 2.2 8.6 Asia Pacific 7.6 9.5 MEA 2.1 9.6 Japan 1.2

Source: Company, Angel Research; Note: MEA exposure of Wipro includes exposure to India

Optimal margin levers in hand coupled with cheers from INR depreciation

Growth is a key margin lever for IT companies as it aids in the broadening of employee pyramid by hiring a larger number of freshers and bringing in scale benefits by leveraging SG&A costs. Currently, the growth rates of IT companies are declining and this will be a headwind to the margins of Indian IT companies. In such a scenario, the levers to support operating margins are: 1) improving utilization level and 2) increasing offshore revenue.

Wipro believes it has scope to tighten operations, which will help the company to bridge the gap in terms of profitability with its peers over the medium term. Wipro’s utilization level (including trainees) is currently standing at 67.4%, which is a historic low level since FY2008. The company has got room to improve its utilization level by ~300bp even if management does not want to run a tight ship. Such improvement in utilization level can add 100-120bp to the company’s operating margin. Wipro has the highest room to improve margins among peers.


June 12, 2012 6

Exhibit 8: Utilization level trend


Wipro’s revenue from offshore declined to 45.6% from 49% earlier due to SAIC’s acquisition. Infosys and TCS derive more than 50% of their revenue from offshore effort base. Increasing offshoring at SAIC as well as from other locations is on Wipro’s cards right now and this could again provide a cushion to its margin. Also, increased offshoring of revenue is always considered as a growth lever during the downturn.

Exhibit 9: Offshore revenue as a % of the company’s overall revenue


Organizational restructuring on track

Wipro’s management highlighted that the company's internal transformation continued to be on track and on time. The company has made several changes in its organizational structure, front-end personnel, senior management roles and incentive structures to re-energize the company and close the performance gap with peers. The variable payout of various senior employees now depends on the following criteria: 1) customer satisfaction measured by customer satisfaction index, 2) employee satisfaction and retention, which is measured by keeping in mind attrition rates and 3) growth in gross profits. Management indicated that the

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June 12, 2012 7

process of workforce alignment is complete, while the capabilities assignment is still going on. The company indicated it had seen the results of transformation in a few client instances and now needs to work on institutionalizing the process.

Wipro has set up dedicated hunting and farming organizations to get more market share in existing accounts and run-the-business budgets. In addition, Wipro has created a dedicated organization to target the change-the-business budgets. We believe these initiatives will start showing results once there is a revival in demand, but the extent of the success will be known only in due course of time.

Continuous improvement in client mining

Wipro has been consistently looking to improve client relationships by increasing the level of engagement with clients. Initial results of these initiatives are already visible in the form of improving customer satisfaction scores over the past one year. The tear-down of the twin CEO structure and restructuring of the organization has also made the company more agile than in the past.

Wipro's top client has posted a CQGR of 5.0% over the last four quarters, while its top five clients have reported a CQGR of 4.8% over the same period. The company added four clients in the US$100mn+ revenue bracket during FY2012 – from three clients to seven clients now. Also, attrition rate has declined sharply over the past three quarters from 23.2% to 14.4% on a quarterly annualized basis.

Analyst meet takeaways

The company’s growth strategy now is to focus on chosen areas in various industry verticals (BSFI, retail, energy and utilities and life sciences and healthcare) as well as service lines. Wipro will also seek to grow by gaining market share amid the churn happening among vendors.

Wipro’s senior management indicated that client buying decisions are increasingly being made by business owners rather than CIOs. According to management, only about 40% of the IT budgets are now being controlled by the CIO. Therefore, the company has made dedicated teams to mine the 138 ’must have’ clients.

While management indicated comfort with respect to CY2012 overall budgets and increased outsourcing/offshoring, it also pointed out that decision-making has been going slow.

The company maintained its cautious view of the demand scenario but indicated that investments to develop domain capabilities are going on to help drive medium-term growth.

Discretionary spend is under stress in various industry verticals, especially for investment banking clients of the BFSI industry.

The BFSI sector’s clients are posing the maximum trouble in terms of IT spending, where investment banking continues to see cut backs in spending.


June 12, 2012 8

Wipro’s organization restructuring is almost complete and the company is focusing on areas such as cloud, mobility and analytics (in tandem with other industry peers) along with building industry-leading competencies in several sub-segments to differentiate itself.

Wipro is focused more on customer satisfaction now and has linked its reward system to customer satisfaction and growth and increased gross margins.

Outlook and valuation

Wipro emphasized its focus on profitable growth and aspirations to close the gap in profitability with peers. Wipro has bridged the gap on revenue growth with peers in a seasonally weak quarter. The next challenge is to ensure growth in-line with peers in a seasonally strong quarter as well and the company appears to have laid the right foundations. Early signs of restructuring yielding results are visible in terms of improvement in the deal pipeline, growth seen in the company’s focus industry verticals and increasing revenue from the company’s top clients.

We expect Wipro’s IT services business’ USD revenue to post a CAGR of 11.1% over FY2012-14E. On an overall basis, we expect Wipro’s revenue to post a CAGR of 13.7% over FY2012-14E. On the operating front, we expect Wipro’s IT services EBIT margin to move from 20.8% in FY2012 to 21.4% in FY2014. On an overall basis, the company’s EBITDA is expected to post a CAGR of 15.9% over FY2012-14E, with EBITDA margin moving from 19.8% in FY2012 to 20.5% in FY2014. Over FY2012-14E, Wipro’s net profit is expected to post a CAGR of 15.2%, which is industry leading. We upgrade the stock to Buy with a target price of `452, valuing it at 15x FY2014E EPS of `30.1.

Exhibit 10: One-year forward PE (x) chart


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June 12, 2012 9

Exhibit 11: Key assumptions FY2013 FY2014

Revenue growth – IT services (USD) 10.5 11.8

USD-INR rate (realized) 50.0 50.0

Revenue growth – Consolidated (`) 15.0 12.5

EBITDA margin (%) 20.0 20.5

EBIT margin (%) 17.2 17.8

EPS growth (%) 14.3 16.1


Exhibit 12: Change in estimates

FY2013E FY2014E

Parameter Earlier Revised Variation Earlier Revised Variation

(` cr) estimates estimates (%) estimates estimates (%)

USD rev. – IT services 6,484 6,541 0.9 7,197 7,310 1.6

Net revenue 41,918 43,150 2.9 46,879 48,541 3.5

EBITDA 8,118 8,613 6.1 9,320 9,967 6.9

PBT 7,812 8,182 4.7 9,276 9,686 4.4

PAT 6,152 6,362 3.4 7,030 7,390 5.1


Exhibit 13: Recommendation summary

Company Reco. CMP Tgt. price Upside FY2014E FY2014E FY2011-14E FY2014E FY2014E

(`) (`) (%) EBITDA (%) P/E (x) EPS CAGR (%) EV/Sales (x) RoE (%)

HCL Tech Buy 485 560 15.5 17.4 11.3 17.0 1.2 21.3

Hexaware Neutral 125 - - 18.6 11.6 55.0 1.4 22.4

Infosys Accumulate 2,457 2,792 13.6 30.6 14.1 13.4 2.6 20.8

Infotech Enterprises Accumulate 162 177 9.3 16.6 8.7 13.9 0.5 13.2

KPIT Cummins Neutral 118 - - 14.8 10.3 0.2 0.9 18.7

Mahindra Satyam Accumulate 78 86 10.2 16.0 9.8 23.7 0.7 12.3

MindTree Neutral 625 - - 15.5 10.7 32.9 0.8 17.0

MphasiS Accumulate 350 373 6.6 17.3 9.5 (2.0) 0.7 12.6

NIIT Buy 42 52 23.5 15.1 4.8 16.3 0.3 18.4

Persistent Neutral 349 - - 22.4 8.7 4.7 0.8 14.5

TCS Neutral 1,248 - - 28.7 17.6 16.8 3.4 27.7

Tech Mahindra Accumulate 676 725 7.2 15.2 8.2 18.5 1.3 18.1

Wipro Buy 394 452 15.0 20.5 13.1 11.6 1.6 19.0



June 12, 2012 10

Profit & Loss account (Consolidated, IFRS) Y/E March (` cr) FY2010* FY2011 FY2012 FY2013E FY2014E

Net revenue 27,124 31,099 37,525 43,150 48,541

Cost of revenues 18,630 21,285 26,317 30,052 33,656

Gross profit 8,494 9,814 11,207 13,099 14,885

% of net sales 31.3 31.6 29.9 30.4 30.7

Selling and mktg exp. 1,861 2,218 2,778 3,305 3,713

% of net sales 6.9 7.1 7.4 7.7 7.6

General and admin exp. 1,482 1,829 2,029 2,360 2,531

% of net sales 5.5 5.9 5.4 5.5 5.2

Depreciation and amortization 783 821 1,013 1,178 1,325

% of net sales 2.9 2.6 2.7 2.7 2.7

EBIT 5,151 5,767 6,401 7,435 8,641

% of net sales 19.0 18.5 17.1 17.2 17.8

Other income, net 337 472 541 728 1,024

Share in profits of eq. acc. ass. 53 64.8 33.3 20 20

Profit before tax 5,541 6,303 6,975 8,182 9,686

Provision for tax 929 971 1,376 1,800 2,276

% of PBT 16.8 15.4 19.7 22.0 23.5

PAT 4,612 5,332 5,599 6,382 7,410

Share in earnings of associate - - - - 1

Minority interest 18 35 26 20 20

Adj. PAT 4,594 5,297 5,573 6,362 7,390

Diluted EPS (`) 18.9 21.7 22.7 25.9 30.1

Note: *Adjusted for 2:3 bonus


June 12, 2012 11

Balance sheet (Consolidated, IFRS) Y/E March ( cr) FY2010* FY2011 FY2012 FY2013E FY2014E

Assets

Goodwill 5,380 5,482 6,794 6,794 6,794

Intangible assets 401 355 423 423 423

Property, plant & equipment 5,346 5,509 5,899 5,921 5,796

Investment in equ. acc. investees 235 299 323 400 400

Derivative assets 120 298 346 346 346

Non-current tax assets 346 924 1,029 1,338 1,234

Deferred tax assets 169 147 260 300 300

Other non-current assets 878 898 1,178 1,469 1,477

Total non-current assets 12,875 13,913 16,251 16,991 16,769

Inventories 793 971 1,066 1,064 1,197

Trade receivables 5,093 6,163 8,033 8,275 9,309

Other current assets 2,111 1,974 2,574 2,632 2,700

Unbilled revenues 1,671 2,415 3,003 3,192 3,591

Available for sale investments 3,042 4,928 4,196 9,545 13,156

Current tax assets 660 496 564 780 800

Derivative assets 262 171 147 247 250

Cash and cash equivalents 6,488 6,114 7,767 7,810 10,547

Total current assets 20,118 23,231 27,349 33,546 41,550

Total assets 32,993 37,144 43,600 50,536 58,319

Equity

Share capital 294 491 492 492 492

Share premium 2,919 3,012 3,046 3,046 3,046

Retained earnings 16,579 20,325 24,191 28,831 34,498

Share based payment reserve 314 136 198 198 198

Other components of equity (440) 58 659 659 659

Shares held by controlled trust (54) (54) (54) (54) (54)

Equity attrib. to shareholders of Co. 19,611 23,968 28,531 33,171 38,838

Minority interest 44 69 85 85 85

Total equity 19,655 24,037 28,616 33,256 38,923

Liabilities

Long term loans and borrowings 1,811 1,976 2,251 2,401 2,551

Deferred tax liability 38 30 35 70 80

Derivative liabilities 288 259 31 350 370

Non-current tax liability 307 502 540 700 850

Other non-current liabilities 323 271 352 400 450

Provisions 10 8 6 16 15

Total non-current liabilities 2776.7 3045.3 3215.3 3937 4316

Loans and bank overdraft 4,440 3,304 3,645 3,978 4,350

Trade payables 3,875 4,405 4,726 5,763 6,455

Unearned revenues 746 660 957 750 900

Current tax liabilities 485 734 723 780 850

Derivative liabilities 138 136 635 635 635

Other current liabilities 650 591 970 1,220 1,620

Provisions 227 232 112 216 270

Total current liabilities 10,561 10,062 11,769 13,343 15,080

Total liabilities 13,338 13,107 14,984 17,280 19,396

Total equity and liabilities 32,993 37,144 43,600 50,536 58,319 Note: *Adjusted for 2:3 bonus


June 12, 2012 12

Cash flow statement (Consolidated, IFRS) Y/E March (` cr) FY2010* FY2011 FY2012 FY2013E FY2014E

Pre tax profit from operations 5,204 5,832 6,434 7,455 8,661

Depreciation 783 821 1,013 1,178 1,325

Expenses (deferred)/written off (18) (35) (26) (20) (20)

Pre tax cash from operations 5,969 6,618 7,422 8,613 9,967

Other income/prior period ad 337 472 541 728 1,024

Net cash from operations 6,306 7,090 7,962 9,340 10,991

Tax (929) (971) (1,376) (1,800) (2,276)

Cash profits 5,377 6,119 6,586 7,540 8,715

(Inc)/dec in current assets (1,076) (1,601) (3,197) (805) (1,656)

Inc/(dec) in current liab. 237 (499) 1,707 1,575 1,737

Net trade working capital (840) (2,101) (1,490) 770 81

Cashflow from oper. actv. 4,537 4,018 5,096 8,310 8,796

(Inc)/dec in fixed assets (1,150) (985) (1,402) (1,200) (1,200)

(Inc)/dec in intangibles 182 (56) (1,380) - -

(Inc)/dec in investments (1,455) (1,951) 708 (5,426) (3,611)

(Inc)/dec in net def. tax assets 268 22 (113) (40) -

(Inc)/dec in derivative assets (120) (178) (48) - -

(Inc)/dec in non-current tax asset (346) (578) (105) (310) 104

(Inc)/dec in minority interest 20 25 16 - -

Inc/(dec) in other non-current liab (436) 103 (105) 572 229

(Inc)/dec in other non-current ast. (70) (20) (280) (290) (8)

Cashflow from investing activities (3,107) (3,616) (2,709) (6,694) (4,486)

Inc/(dec) in debt (157) 165 275 150 150

Inc/(dec) in equity/premium 982 617 713 0 (0)

Dividends (679) (1,558) (1,723) (1,723) (1,723)

Cashflow from financing activities 146 (775) (735) (1,573) (1,573)

Cash generated/(utilized) 1,576 (374) 1,653 43 2,737

Cash at start of the year 4,912 6,488 6,114 7,767 7,810

Cash at end of the year 6,488 6,114 7,767 7,810 10,547 Note: *Adjusted for 2:3 bonus


June 12, 2012 13

Key Ratios Y/E March FY2010* FY2011 FY2012 FY2013E FY2014E

Valuation ratio(x)

P/E (on FDEPS) 20.8 18.1 17.3 15.2 13.1

P/CEPS 8.9 8.7 8.1 7.0 6.0

P/BVPS 4.4 4.0 3.4 2.9 2.5

Dividend yield (%) 1.0 1.5 1.5 1.5 1.5

EV/Sales 3.3 2.8 2.3 1.9 1.6

EV/EBITDA 15.0 13.3 11.7 9.5 7.6

EV/Total assets 2.7 2.4 2.0 1.6 1.3

Per share data (`)

EPS (Fully diluted) 18.9 21.7 22.7 25.9 30.1

Cash EPS 44.3 45.1 48.8 56.2 65.3

Dividend 4.0 6.0 6.0 6.0 6.0

Book value 89.3 98.0 116.6 135.5 158.6

DuPont analysis

Tax retention ratio (PAT/PBT) 0.8 0.8 0.8 0.8 0.8

Cost of debt (PBT/EBIT) 7.1 7.7 6.9 6.9 7.3

EBIT margin (EBIT/Sales) 0.0 0.0 0.0 0.0 0.0

Asset turnover ratio (Sales/Assets) 0.8 0.8 0.9 0.9 0.8

Leverage ratio (Assets/Equity) 1.7 1.5 1.5 1.5 1.5

Operating ROE 23.5 22.2 19.6 19.2 19.1

Return ratios (%)

RoCE (pre-tax) 15.6 15.5 14.7 14.7 14.8

Angel RoIC 28.5 28.0 25.8 28.2 31.1

RoE 23.4 22.0 19.5 19.1 19.0

Turnover ratios (x)

Asset turnover(fixed assets) 0.9 0.9 0.9 0.9 0.9

Receivables days 67 66 69 69 68

Payable days 79 71 63 64 64

Note: *Adjusted for 2:3 bonus


June 12, 2012 14

Disclosure of Interest Statement Wipro

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

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

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

Research Team Tel: 022 - 39357800 E-mail: [email protected] 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.

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June 12, 2012 15

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Research Team

Fundamental:

Sarabjit Kour Nangra VP-Research, Pharmaceutical [email protected]

Vaibhav Agrawal VP-Research, Banking [email protected]

Bhavesh Chauhan Sr. Analyst (Metals & Mining) [email protected]

Sharan Lillaney Analyst (Mid-cap) [email protected]

V Srinivasan Analyst (Cement, Power, FMCG) [email protected]

Yaresh Kothari Analyst (Automobile) [email protected]

Nitin Arora Analyst (Infra) [email protected]

Ankita Somani Analyst (IT, Telecom) [email protected]

Varun Varma Analyst (Banking) [email protected]

Saurabh Taparia Analyst (Banking, Media) [email protected]

Rahul Kaul Analyst (Cap Goods, Real Estate) [email protected]

Vinay Rachh Research Associate [email protected]

Amit Patil Research Associate [email protected]

Shareen Batatawala Research Associate [email protected]

Twinkle Gosar Research Associate [email protected]

Tejashwini Kumari Research Associate [email protected]

Technicals:

Shardul Kulkarni Sr. Technical Analyst [email protected]

Sameet Chavan Technical Analyst [email protected]

Sacchitanand Uttekar Technical Analyst [email protected]

Derivatives:

Siddarth Bhamre Head - Derivatives [email protected]

Institutional Sales Team:

Mayuresh Joshi VP - Institutional Sales [email protected]

Hiten Sampat Sr. A.V.P- Institution sales [email protected]

Meenakshi Chavan Dealer [email protected]

Gaurang Tisani Dealer [email protected]

Akshay Shah Sr. Executive [email protected]

Production Team:

Simran Kaur Research Editor [email protected]

Dilip Patel Production [email protected]

Angel Broking Ltd: BSE Sebi Regn No : INB 010996539 / CDSL Regn No: IN - DP - CDSL - 234 - 2004 / PMS Regn Code: PM/INP000001546 Angel Securities Ltd:BSE: INB010994639/INF010994639 NSE: INB230994635/INF230994635 Membership numbers: BSE 028/NSE:09946 Angel Capital & Debt Market Ltd: INB 231279838 / NSE FNO: INF 231279838 / NSE Member code -12798 Angel Commodities Broking (P) Ltd: MCX Member ID: 12685 / FMC Regn No: MCX / TCM / CORP / 0037 NCDEX : Member ID 00220 / FMC Regn No: NCDEX / TCM / CORP / 0302

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