Ultratech cement ltd. Q2 FY16 result analysis

1. UltraTech Cement
‘Strong growth prospect ahead’
Q2 FY16 RESULT ANALYSIS
Buy
Relative Capital Market Strength
UltraTech Cement (UTCEM), the country's largest cement maker, has announced
its Q2FY16 performance numbers which came marginally lower than our
estimation. Amid subdued demand condition, grey cement volumes increased by
3.8% YoY to 10.8mt, while net realization rose slightly 3.7% YoY to
Rs5,260/tonne. The benefit of low energy cost was offset by increase in other
expenditure owing to higher maintenance costs and thus EBIDTA of UTCEM came
at Rs989 cr for Q2FY16. Furthermore, high depreciation charges and tax outflow
weighed on bottomline growth with net profit declining 4%YoY to Rs393 cr.
Though Q2FY16 remained sluggish for UTCEM in terms of volume growth as well
as realization due to weak demand, activity in infrastructure sector is likely to
pick up in coming future as the government has enhanced its emphasis for
concrete road development. Likelihood of pick-up in government infrastructure
capex over the next two-to-three years is expected to drive the cement demand
recovery. We believe that UTCEM, being the most aggressive among its peers in
adding capacity and has highly efficient operations and sizeable capacity, to
remain the major beneficiary of acceleration in demand growth in Indian
economy. We upgrade our rating to ‘Buy’ on UTCEM with a target price of
Rs3,394 per share.
Q2 FY16 Result Analysis:
Moderated operating income growth amid sluggish demand scenario: Operating
income of UTCEM grew by 4.7% to Rs5,681.6 crore , which is 2.5% lower of our
estimate of Rs5,827.5 cr. During Q2FY16, UTCEM penetration in the rural markets
has enhanced as it sold around 37% of its total volume in rural India. Region wise,
East region continues to grow at the brisk pace due to demand growth across
segments and realization also improved in this region due high increase in cement
prices. While the northern region has shown signs of recovery, demand in western
region has been impacted by monsoon deficit and in central region by sand mining
ban in Madhya Pradesh.
Benefit of softening fuel prices offset by DMF levy: Operating expenditure grew by
3.1%YoY in quarter under reiveiw as compared to 7% YoY increase in Q1FY16.
Operating cost per tonne reduced by 1% YoY to Rs4,227.6 cr, however it shot up by
6% on QoQ basis. Power & Fuel cost to operating income declined 18.6% in Q2FY16
as against 21.1% in Q2FY15, while this benefit is partially set by freight rail cost and
raw material cost owing to DMF levy (Rs52 cr) under MMDR act. Operating cost is
expected to remain low due to moderation in energy cost and low logistic cost.
Moderation in energy cost will be driven by higher contribution from waste heat
recovery, lower fuel cost, and increased proportion of petcoke in the overall fuel
mix to 80% from the current 65%. Further, logistic cost for UTCEM is expected to
reduce from additional grinding units.
High tax outflow and depreciation charges weighed on bottom line growth: Net
profit of UTCEM declined by 4% in Q2FY16 due to high depreciation and tax
outflow. Tax expenses rose by 84% and management attributed this rise to change
in income tax law for investments income.
1© CHOICE INSTITUTIONAL RESEARCH
Oct 20, 2015
Satish Kumar Sharma | Desk Phone: 022 - 6707 9858 | satish.kumar@choiceindia.com
Rating Matrix
CMP Rs2,919
Rating Buy
Target Price Rs3,394
Target Period 12 Months
Upside Potential 16.3%
52 week H/L Rs3,399/2,386
Face value Rs10
Sector Cement
Shareholding Pattern as on Sep 2015
Particulars Sep'15 Jun'15 Sep'14 Jun'14
Promoters 61.7% 61.7% 61.7% 61.7%
FIIs 18.4% 18.5% 19.3% 19.9%
DIIs 7.1% 6.8% 5.8% 5.7%
Non Insti. 11.0% 11.3% 11.2% 11.0%
Others 1.7% 1.8% 2.1% 1.8%
Q2FY16 (A) Our. Est. Var.
Operating
Income
5,681.6 5,827.5 -2.5%
EBIDTA 989.0 1,047.6 -5.6%
Net Profit 393.9 421.2 -6.5%
Valuation and View
Activity in cement sector has remained sluggish so far this fiscal and during the
first five months of current fiscal, sector output grew by 1.8% YoY. Cement
demand is expected to pick up from H2FY16 on the back of increased spending by
GOI on building Infrastructure mainly road sector, smart cities and housing and
high probability of interest rate cut by banks. We upgrade our rating to ‘Buy’ on
UTCEM with a target price of Rs3,394 per share determine on the basis of DCF
as well Relative Valuation.
0.8
0.85
0.9
0.95
1
1.05
1.1
1.15
1.2
Sensex Ultratech Cement
Change in
Estimate
FY16E FY17E FY18E
Rs Cr Old New % % %
Operating
Income
27,750.0 27,465.0 -1.0% 0% 0%
EBIDTA 5,596.2 5,333.4 -4.7% 0% 0%
PAT 2,613.6 2,475.7 -5.3% 0% 0%

2. UltraTech Cement
Cement
2© CHOICE INSTITUTIONAL RESEARCH
Key Financials (Standalone)
Satish Kumar Sharma | Desk Phone: 022 - 6707 9858 | satish.kumar@choiceindia.com
Particulars (Rs cr) Q2FY16 Q2FY15 YoY Q1FY16 QoQ
Operating Income 5,681.6 5,426.6 4.7% 6,097.5 -6.8%
Opetating Expenditure 4,692.6 4,549.5 3.1% 4,945.5 -5.1%
EBIDTA 989.0 877.1 12.8% 1,152.0 -14.1%
EBIDTA Margin 17.4% 16.2% 18.9%
Depreciation/Amortisation 333.3 302.4 10.2% 282.7 17.9%
Total Expenses 5,025.9 4,851.9 3.6% 5,228.2 -3.9%
Other Income 44.2 74.1 -40.4% 99.9 -55.8%
Finance Costs 130.3 143.4 -9.1% 138.3 -5.8%
Tax Expenses 175.9 95.4 84.4% 240.1 -26.7%
Net Profit 393.7 410.0 -4.0% 590.8 -33.4%
NPM (%) 6.9% 7.6% 9.7%
EPS (Dil.) 14.4 14.9 -3.7% 21.5 -33.3%
Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Cement Volumes (mnT) 10.7 11.3 12.2 12.4 11.1
Cost per tonne (Rs) 4,254.5 4,109.8 4,018.9 3,988.3 4227.6
Net Realization per tonne (Rs) 5,074.1 4,957.0 5,092.9 4,917.3 5118.6
EBIDTA Per tonne (Rs) 819.6 847.2 1073.9 929.0 891.0
Valuation: At CMP of Rs2,919, the stock is trading at 3.3x its FY17E BVPS of Rs873 and EV/EBIDTA (13.8)x FY17E. Our
target price stands at Rs3394 determine on the basis of DCF as well Relative Valuation. Our Target Price (TP) is blended,
where we assign 25% weight to P/BV based fair value, 25% weight to EV/EBIDTA based fair values and 50% weight to DCF
(FCFF) based fair value.
Particulars FY14 FY15 FY16E FY17E FY18E FY19E
BVPS 624.0 687.2 767.5 872.8 1008.2 1167.4
EBIDTA (Rs Cr) 3817.9 4195.0 5333.4 6426.5 7687.8 8837.3
Valuation Parameters P/BV EV/EBIDTA
Industry Average 3.5 17.1
P/BV‐, EV/EBIDTA, DCF (FCFF)‐based fair values
Rs P/BV EV/EBIDTA DCF (FCFF)
Fair Value (Rs) 3078 3692 3402
Weights 25.0% 25.0% 50.0%
3394Fair Value (after assigning weight ) 770 923 1,701
Particulars CMP (Rs) BVPS(Rs) EBIDTA(TTM) EV/EBIDTA P/BV M Cap (Rs cr)
Ultratech Cement 2,919 688.2 4,408.5 19.6 4.2 79,980
Acc Ltd. 1,379.0 438.3 1,573.9 15.4 3.1 25,911
Ambuja Cement 209.0 65.2 1,645.4 18.2 3.2 32,389
Average - 397.2 2,542.6 17.7 3.5 46,021

3. UltraTech Cement
Cement
3© CHOICE INSTITUTIONAL RESEARCH
Source: Choice Broking Research
Satish Kumar Sharma | Desk Phone: 022 - 6707 9858 | satish.kumar@choiceindia.com
5649
5381
5489.8
6135.56097.5
5681.6
13.9%
19.5%
14.7%
5.2%
7.1%
4.70%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
5000
5200
5400
5600
5800
6000
6200
Rscrore
Operating Income Growth Trend
Operating Income Y0Y (Growth)
625.5
410.0 364.4
614.7
590.8
393.7
11.0%
7.6%
6.6%
9.9% 9.7%
7%
0.0%
3.0%
6.0%
9.0%
12.0%
0.0
200.0
400.0
600.0
800.0
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Rscrore
Net Profit declines 4% in Q2FY16
Net Profit NPM (%)
Raw
Material
Cost,
15.3%
Employee
Cost, 6.0%
Power
and Fuel
Cost,
18.6%Freight
Cost,
23.7%
Other
Expenses,
18.3%
Other,
18.0%
Operating Expenditure/Sales, Q2FY16
Raw
Material
Cost,
14.5%
Employee
Cost, 5.7%
Power and
Fuel Cost,
21.1%Freight
Cost,
23.8%
Other
Expenses,
17.8%
Other,
17.1%
Operating Expenditure/Sales, Q2FY15
0
200
400
600
800
1000
1200 1062
884.8
819.6 847.2
1073.9
929.0 891.0
EBIDTA per Tonne (Rs)

4. UltraTech Cement
Cement
4© CHOICE INSTITUTIONAL RESEARCH
Source: Choice Broking Research
Satish Kumar Sharma | Desk Phone: 022 - 6707 9858 | satish.kumar@choiceindia.com
Issues and Concerns
 Below normal monsoon this fiscal
 Concern related to slow execution of infrastructure projects in future
UTCEM Capex Update
During Q2FY16, UTCEM has commissioned a 1.6 mt grinding unit at Jhajjar, Haryana, and 1.6mt (million tonne)
grinding unit in Dankuni, West Bengal. Including above two grinding units the company has reached to a total
domestic cement capacity of 64.7mnT. Further, UTCEM has also commissioned 2mnt Bulk Terminal on the
outskirts of Pune, Maharashtra and 5MW Waste Heat Recovery System at Rawan, Chhattisgarh. It spent over
Rs12bn in H1FY16 as against total estimated capex of Rs30bn for FY16E.
Concall Highlights
 UTCEM expects a fall in its logistic costs in coming future due to reduction in lead distance assisted by new
grinding capacity
 The Management expects a significant movement in cement demand from road and highway segment
since only 4,600kms road projects are stuck as of now compared to 8,600kms road projects seen in the
beginning of the year
 The Management expects demand in Southern markets to improve at higher rate in the next 6-9 months
as 25,000kms concrete roads have been announced in AP/Telangana.
 The management announced that UTCEM to become 100 mt cement company in the coming years. It has
been continuously acquiring lands for this purpose. UTCEM expects to come up with new organic
expansion plans by the end of this fiscal.

5. UltraTech Cement
Cement
5© CHOICE INSTITUTIONAL RESEARCH
Source: Choice Broking Research
Profit And Loss Statement
(Rs cr)
Satish Kumar Sharma | Desk Phone: 022 - 6707 9858 | satish.kumar@choiceindia.com
Particulars FY14 FY15 FY16E FY17E FY18E FY19E
Net Sales (Operating Income) 20,279.8 22,936.2 27,465.0 31,928.8 36,885.8 40,576.9
% Growth 0.5% 13.1% 19.7% 16.3% 15.5% 10.0%
Total Revenue 20,608.7 23,308.0 27,838.9 32,344.0 37,338.6 41,068.0
% Growth 0.6% 13.1% 19.4% 16.2% 15.4% 10.0%
EXPENDITURES
Staff Costs 1,014.6 1,218.3 1,329.8 1,552.6 1,799.3 1,966.7
% of Net Sales 5.0% 5.3% 4.8% 4.9% 4.9% 4.8%
Other Manf./Operating costs 12,011.1 13,703.4 16,106.5 18,560.3 21,052.1 22,874.8
% of Net Sales 59.2% 59.7% 58.6% 58.1% 57.1% 56.4%
Other Expenses 3,436.2 3,819.5 4,717.5 5,389.5 6,346.5 6,898.1
% of Net Sales 16.9% 16.7% 17.2% 16.9% 17.2% 17.0%
Total Expenditures 16,461.9 18,741.1 22,131.6 25,502.4 29,198.0 31,739.6
% of Net Sales 81.2% 81.7% 80.6% 79.9% 79.2% 78.2%
EBITDA 3,817.9 4,195.0 5,333.4 6,426.5 7,687.8 8,837.3
EBITDA Margin % 18.8% 18.3% 19.4% 20.1% 20.8% 21.8%
Growth % -18.3% 9.9% 27.1% 20.5% 19.6% 15.0%
Depreciation & Amortisation 1,052.3 1,133.1 1,436.5 1,724.2 1,936.5 2,110.0
EBIT 2,765.6 3,061.9 3,896.9 4,702.3 5,751.3 6,727.3
Financial Charges 319.2 547.5 591.2 556.9 510.0 518.5
Other Income 328.9 371.8 373.9 415.1 452.8 491.1
PBT 2,775.3 2,886.3 3,679.6 4,560.5 5,694.1 6,700.0
Pre-tax Margin % 13.7% 12.6% 13.4% 14.3% 15.4% 16.5%
Tax 631.0 871.5 1203.9 1334.5 1540.5 1820.8
Effective Tax Rate % 22.7% 30.2% 32.7% 29.3% 27.1% 27.2%
Reported PAT 2,144.3 2,014.7 2,475.7 3,226.1 4,153.6 4,879.2
Net Profit Margin % 10.6% 8.8% 9.0% 10.1% 11.3% 12.0%
Growth in Reported PAT % -19.3% -6.0% 22.9% 30.3% 28.8% 17.5%
Extrodinary Income 0.0 0.0 0.0 0.0 0.0 0.0
Adjusted PAT 2,144.3 2,014.7 2,475.7 3,226.1 4,153.6 4,879.2
Shares In Issue 27.4 27.4 27.4 27.4 27.4 27.4
Adjusted EPS 78.3 73.4 90.2 117.6 151.4 177.8
Growth % -19.3% -6.2% 22.9% 30.3% 28.8% 17.5%

6. UltraTech Cement
Cement
6© CHOICE INSTITUTIONAL RESEARCH
Source: Choice Broking Research
Balance Sheet
Rs (cr)
Satish Kumar Sharma | Desk Phone: 022 - 6707 9858 | satish.kumar@choiceindia.com
Particulars FY14 FY15 FY16E FY17E FY18E FY19E
Gross Asset 25,252.3 30,839.6 31,934.2 36,581.4 41,772.2 43,677.9
Accumulated Depriciation 9,377.3 10,510.4 12,008.9 13,733.1 15,669.6 17,779.6
Capital WIP 2,038.4 2,692.0 3,551.2 4,163.5 4,235.9 4,453.2
Net Fixed Asset 17,913.5 23,021.2 23,476.5 27,011.8 30,338.5 30,351.5
Investments & Deposits 6,571.7 6,804.4 10,663.2 9,717.9 9,656.1 14,718.7
Current Asset 5,268.3 5,389.4 6,704.0 7,838.6 9,175.8 9,982.2
Cash 277.5 213.9 285.6 328.2 410.5 426.7
Inventories 2,368.4 2,751.4 3,234.5 3,769.1 4,365.2 4,814.3
Trade Debtors 1,281.0 1,203.2 1,416.5 1,709.7 2,004.0 2,118.4
Loans and Advances 1,326.2 1,204.9 1,754.5 2,016.6 2,376.9 2,604.0
Other Current Assets 15.3 16.0 12.9 14.9 19.1 18.7
Current Liabilities & Provisions 5,347.7 6,888.7 7,416.6 8,753.8 10,049.2 11,564.4
Net Current Asset Excluding Cash (356.8) (1,713.2) (998.2) (1,243.4) (1,283.9) (2,009.0)
Capital Deployed 24,405.9 28,326.2 33,427.1 35,814.5 39,121.2 43,488.0
Non-Current Liabilities
Borrowings 4,872.8 6,511.8 9,410.8 8,910.8 8,500.0 8,500.0
Other Long-term Liabilities 1.8 1.3 0.0 0.0 0.0 0.0
Deferred Tax Liabilities 2,295.8 2,792.0 2,792.0 2,792.0 2,792.0 2,792.0
Long-term Provisions 137.9 163.4 163.4 163.4 163.4 163.4
Total Liabilities 7,308.4 9,468.5 12,366.2 11,866.2 11,455.4 11,455.4
Contingent Liabilities
Share Capital 274.2 274.3 274.4 274.4 274.4 274.4
Reserve and Surplus 16,823.3 18,583.3 20,786.6 23,674.0 27,391.4 31,758.3
Total Stock Holder's Equuity 17,097.5 18,857.6 21,061.0 23,948.4 27,665.8 32,032.7
Capital Employed 24,405.9 28,326.1 33,427.1 35,814.5 39,121.2 43,488.0
DIFF 0.0 0.1 (0.0) (0.0) (0.0) (0.0)

7. UltraTech Cement
Cement
7© CHOICE INSTITUTIONAL RESEARCH
Source: Choice Broking Research
Cash Flow Statement (Rs Cr)
Satish Kumar Sharma | Desk Phone: 022 - 6707 9858 | satish.kumar@choiceindia.com
Particulars FY14 FY15 FY16E FY17E FY18E FY19E
Profit before tax 2,775.3 2,886.3 3,679.6 4,560.5 5,694.1 6,700.0
Depreciation 1,052.3 1,133.1 1,436.5 1,724.2 1,936.5 2,110.0
Interest Expense 319.2 547.5 591.2 556.9 510.0 518.5
Operating Profit Before WC Changes 4,146.8 4,566.8 5,707.3 6,841.6 8,140.6 9,328.5
Changes In WC (766.2) 1,356.4 (715.0) 245.2 40.5 725.0
Gross cash generated from
Operations 3,380.6 5,923.2 4,992.3 7,086.8 8,181.1 10,053.5
Direct Taxes Paid 631.0 871.5 1,203.9 1,334.5 1,540.5 1,820.8
Net Cash Generated From Operations 2,749.6 5,051.7 3,788.4 5,752.3 6,640.6 8,232.7
(2,338.0) (6,240.8) (1,953.9) (5,259.4) (5,263.2) (2,123.0)
Capital Expenditure (CAPEX) (479.8) (232.6) (3,858.8) 945.3 61.8 (5,062.6)
Investments (2,817.8) (6,473.4) (5,812.7) (4,314.2) (5,201.4) (7,185.6)
Net Cash Used In Investing Activities
Change in Debt 803.4 2,160.2 2,897.6 (500.0) (410.8) 0.0
Change in Equity 0.1 0.1 0.1 0.1 (0.0) 0.0
Dividends Paid (289.0) (247.0) (272.3) (338.7) (436.1) (512.3)
Interest Paid (319.2) (547.5) (591.2) (556.9) (510.0) (518.5)
Others 7.3 (7.7) 61.9 0.0 (0.0) 0.0
Net Cash used in Financing Activities 202.6 1,358.1 2,096.0 (1,395.6) (1,356.9) (1,030.8)
Net Increase in Cash and Cash
Equivalents 134.4 (63.7) 71.7 42.6 82.3 16.3
Cash and cash equivalents At the
beginning 142.7 277.5 213.9 285.6 328.2 410.5
Net Increase in Cash and Cash
Equivalents 134.4 (63.7) 71.7 42.6 82.3 16.3
Cash and cash equivalents At the end 277.0 213.8 285.7 328.2 410.5 426.7
Cash balance as per balance sheet 277.5 213.9 285.6 328.2 410.5 426.7
difference (0.5) (0.1) 0.0 (0.0) 0.0 0.0

8. UltraTech Cement
Cement
8© CHOICE INSTITUTIONAL RESEARCH
Source: Choice Broking Research
Financial Ratios (Rs cr)
Satish Kumar Sharma | Desk Phone: 022 - 6707 9858 | satish.kumar@choiceindia.com
Particulars FY14 FY15 FY16E FY17E FY18E FY19E
Profitability Ratios
Return on Assets (ROA) 7.2% 5.7% 6.1% 7.2% 8.4% 8.9%
Return on Equity (ROE) 12.5% 10.7% 11.8% 13.5% 15.0% 15.2%
Return on Capital Employed (ROCE) 11.3% 10.8% 11.7% 13.1% 14.7% 15.5%
Dupont Analysis-ROE Decomposition
PAT/PBT (Tax Efficiency) 0.8 0.7 0.7 0.7 0.7 0.7
PBT/EBIT (Interest Burden) 1.0 0.9 0.9 1.0 1.0 1.0
EBIT/Sales (OPM) 0.1 0.1 0.1 0.1 0.2 0.2
Sales/Total Assets (Asset Turnover) 0.7 0.7 0.7 0.7 0.8 0.7
TA/NW (Financial Leverage) 1.7 1.9 1.9 1.9 1.8 1.7
ROE 12.5 10.7 11.8 13.5 15.0 15.2
Liquidity Ratios
Current Ratio 1.0 0.8 0.9 0.9 0.9 0.9
Acid Test Ratio 0.5 0.4 0.5 0.5 0.5 0.4
Debt-Equity Ratio 0.3 0.3 0.4 0.4 0.3 0.3
Efficiency Ratios
Assets Turnover Ratio 0.7 0.7 0.7 0.7 0.8 0.7
Working Capital Turnover Ratio -255.7 -15.3 -38.5 -34.9 -42.2 -25.6
F.A. Turnover Ratio 1.1 1.0 1.2 1.2 1.2 1.3
C.A. Turnover Ratio 3.8 4.3 4.1 4.1 4.0 4.1
Debtors Velocity 23 19 19 20 20 19
Margin Ratios (%)
EBITDA Margin 18.8% 18.3% 19.4% 20.1% 20.8% 21.8%
Pre-Tax Margin 13.7% 12.6% 13.4% 14.3% 15.4% 16.5%
Net Profit Margin 10.6% 8.8% 9.0% 10.1% 11.3% 12.0%
Growth Ratios YoY (%)
Net Sales 0.5% 13.1% 19.7% 16.3% 15.5% 10.0%
EBITDA -18.3% 9.9% 27.1% 20.5% 19.6% 15.0%
Adj.PAT -19.3% -6.0% 22.9% 30.3% 28.8% 17.5%
Adj.EPS -19.3% -6.2% 22.9% 30.3% 28.8% 17.5%
Working Ratios (Days)
Inventory 43 44 43 43 43 43
Debtors 23 19 19 20 20 19
Other Ratios (%)
Other Income/PBT 11.9% 12.9% 10.2% 9.1% 8.0% 7.3%
FCF Margin 1.0% -5.4% 6.0% 1.0% 3.2% 14.7%
Capex/Sales 11.5% 27.2% 7.1% 16.5% 14.3% 5.2%
Enterprise Value 55148.3 77367.5 89003.0 88460.4 87967.4 87951.1
Net Working Capital Excluding Cash -356.8 -1713.2 -998.2 -1243.4 -1283.9 -2009.0
Per Share (Rs.)
Adj.EPS 78.3 73.4 90.2 117.6 151.4 177.8
CEPS 116.7 114.7 142.6 180.4 221.9 254.7
DPS 9.0 9.0 9.9 12.3 15.9 18.7
BVPS 624.0 687.2 767.5 872.8 1008.2 1167.4
Cash Per Share 10.1 7.8 10.4 12.0 15.0 15.6
Valuation Parameters @2919
P/E 23.6 35.3 32.4 24.8 19.3 16.4
P/CEPS 15.8 22.6 20.5 16.2 13.2 11.5
P/BV 3.0 3.8 3.8 3.3 2.9 2.5
EV/EBITDA 14.4 18.4 16.7 13.8 11.5 10.0
EV/SALES 2.7 3.4 3.2 2.8 2.4 2.2

9. es
9© CHOICE INSTITUTIONAL RESEARCH
Disclaimer
This is solely for information of clients of Choice Broking and does not construe to be an investment advice. It is also not intended as an offer or solicitation
for the purchase and sale of any financial instruments. Any action taken by you on the basis of the information contained herein is your responsibility alone
and Choice Broking its subsidiaries or its employees or associates will not be liable in any manner for the consequences of such action taken by you. We have
exercised due diligence in checking the correctness and authenticity of the information contained in this recommendation, but Choice Broking or any of its
subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in
the information contained in this recommendation or any action taken on basis of this information. This report is based on the fundamental analysis with a
view to forecast future price. The Research analysts for this report certifies that all of the views expressed in this report accurately reflect his or her personal
views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly
related to specific recommendations or views expressed in this report. Choice Broking has based this document on information obtained from sources it
believes to be reliable but which it has not independently verified; Choice Broking makes no guarantee, representation or warranty and accepts no
responsibility or liability as to its accuracy or completeness. The opinions contained within the report are based upon publicly available information at the
time of publication and are subject to change without notice. The information and any disclosures provided herein are in summary form and have been
prepared for informational purposes. The recommendations and suggested price levels are intended purely for stock market investment purposes. The
recommendations are valid for the day of the report and will remain valid till the target period. The information and any disclosures provided herein may be
considered confidential. Any use, distribution, modification, copying, forwarding or disclosure by any person is strictly prohibited. The information and any
disclosures provided herein do not constitute a solicitation or offer to purchase or sell any security or other financial product or instrument. The current
performance may be unaudited. Past performance does not guarantee future returns. There can be no assurance that investments will achieve any targeted
rates of return, and there is no guarantee against the loss of your entire investment.
POTENTIAL CONFLICT OF INTEREST DISCLOSURE (as on date of report) Disclosure of interest statement – • Analyst interest of the stock /Instrument(s): - No. •
Firm interest of the stock / Instrument (s): - No.
Choice’s Rating Rationale
The price target for a large cap stock represents the value the analyst expects the stock to reach over next 12 months. For a
stock to be classified as Outperform, the expected return must exceed the local risk free return by at least 5% over the next
12 months. For a stock to be classified as Underperform, the stock return must be below the local risk free return by at least
5% over the next 12 months. Stocks between these bands are classified as Neutral.
BUY Absolute Return >15%
Accumulate Absolute Return Between 10-15%
Hold Absolute Return Between 0-10%
Reduce
Absolute Return 0 To Negative
10%
Sell Absolute Return > Negative 10%
Choice Equity Broking Pvt. Ltd.
Choice House, Shree Shakambhari Corporate Park, Plt No: -156-158,
J.B. Nagar, Andheri (East), Mumbai - 400 099.
+91-022-6707 9999
+91-022-6707 9959
www.choiceindia.com
Institutional Equity Team
Name Designation Email id Contact No.
Ajay Kejriwal President ajay@choiceindia.com 022- 6707 9850
Sumeet Bagadia Head of Research sumeet.bagadia@choiceindia.com 022 - 6707 9830
Amit Singh VP - Institutional Sales amit.singh@choiceindia.com 022 - 6707 9852
Devendra Gaikwad Sr. Manager - Institutional Sales devendra.gaikwad@choiceindia.com 022 - 6707 9877
Rajnath Yadav Research Analyst rajnath.yadav@choiceindia.com 022 - 6707 9975
Satish Kumar Research Analyst satish.kumar@choiceindia.com 022 - 6707 9974
Kunal Parmar Research Associate kunal.parmar@choiceindia.com 022 - 6707 9982
Ritesh Patel Research Associate ritesh.patel@choiceindia.com 022 - 6707 9978
Amit Pathania Research Associate amit.pathania@choiceindia.com 022 - 6707 9979
Vikas Chaudhari Research Associate vikas.chaudhari@choiceindia.com 022 - 6707 9988
Trirashmi Ghoderao Research Advisor trirashmi.ghoderao@choiceindia.com 022 - 6707 9972
Neeraj Yadav Research Advisor Neeraj.yadav@choiceindia.com 022 - 6707 9988
Coverage History
Date Recommendation CMP (Rs) Target Price (Rs)
27-Feb-15 Buy 3,121 3,450
28-Apr-15 Buy 2,655 3,450
21-Jul-15 Hold 3,215 3,400
20-Oct-15 Hold 2,919 3,394