3QFY2016 Result Update | Pharmaceutical

February 23, 2016

Cipla

BUY

CMP

`523

Performance Highlights

Target Price

`605

Y/E March (` cr)

3QFY2016 2QFY2016

% chg qoq 3QFY2015

% chg yoy

Investment Period

12 Months

Net sales

3,027

3,362

(10.0)

2,625

15.3

Other income

159

117

36.0

181

(12.6)

Gross profit

1,783

2,145

(16.9)

1,635

9.1

Stock Info

Operating profit

364

699

(47.9)

413

(11.8)

Sector

Pharmaceutical

Adj. Net profit

343

431

(20.5)

328

4.7

Market Cap (` cr)

41,984

Source: Company, Angel Research

Net Debt (` cr)

498

Cipla has posted a lower-than-expected set of numbers for 3QFY2016. Sales

Beta

1.0

came in at `3,027cr (V/s `3,367cr expected) V/s `2,625cr in 3QFY2015, a yoy

52 Week High / Low

752/514

growth of 15.3%, mainly led by exports. On the operating front, the OPM came

Avg. Daily Volume

155,311

in at 12.0% V/s 19.9% expected and V/s 15.7% in 3QFY2015. According to the

Face Value (`)

Management, the revenues took a 2.5% impact on account of change in

BSE Sensex

23,410

distribution policy and an ~0.7% impact on back of currency impact of ZAR.

Nifty

7,110

Thus, the Adj. net profit came in at `343cr V/s `400cr expected and V/s `328cr

Reuters Code

CIPL.BO

in 3QFY2015, registering a yoy growth of 4.7%. We maintain our Buy on the

Bloomberg Code

CIPLA@IN

stock with a price target of `605.

Results better than expectations on the OPM front: Sales for the quarter came in

Shareholding Pattern (%)

at `3,027cr (V/s `3,367cr expected) V/s `2,625cr in 3QFY2015, a yoy growth of

Promoters

36.8

15.3%, mainly led by exports. Domestic sales (`1,194cr) posted a dip of 0.4%,

MF / Banks / Indian Fls

16.5

while exports (`1,833cr) posted a yoy growth of 28.5%. On the operating front,

FII / NRIs / OCBs

28.2

the OPM came in at 12.0% V/s 19.9% expected and V/s 15.7% in 3QFY2015.

The lower OPM yoy is owing to decline in the GPM which came in at 58.9% V/s

Indian Public / Others

18.5

63.9% expected and V/s 62.3% in 3QFY2015. The R&D expenditure during the

quarter was 8% of sales compared to 6% of sales during the corresponding

Abs. (%)

3m 1yr

3yr

period of last year. Thus, the Adj. net profit came in at `343cr V/s `400cr

Sensex

(9.3)

(19.2)

21.2

expected and V/s `328cr in 3QFY2015, registering a yoy growth of 4.7%.

Cipla

(18.4)

(21.9)

37.4

Outlook and valuation: We expect the company to post an 18.7% CAGR in net

sales to `16,447cr and EPS to record a 18.3% CAGR to `27.5 over FY2015-

3-Year Daily Price Chart

17E. The growth in the top-line would be driven by domestic formulation sales

800

and exports. We maintain our buy recommendation on the stock.

700

600

Key financials (Consolidated)

500

Y/E March (` cr)

FY2014

FY2015

FY2016E

FY2017E

400

300

Net sales

9,753

11,681

13,979

16,447

200

% chg

20.6

19.8

19.7

17.7

100

Adj. Net profit

1,388

1,578

2,064

2,208

% chg

(8.9)

13.6

30.8

7.0

EPS (`)

17.3

19.6

25.7

27.5

Source: Company, Angel Research

EBITDA margin (%)

18.3

17.7

20.2

18.6

P/E (x)

30.2

26.6

20.3

19.0

RoE (%)

14.6

15.1

17.6

16.1

RoCE (%)

12.8

12.9

17.0

16.6

P/BV (x)

4.2

3.9

3.3

2.9

Sarabjit Kour Nangra

EV/Sales (x)

4.4

3.7

3.0

2.5

+91 22 3935 7600 Ext: 6806

EV/EBITDA (x)

24.0

20.7

14.9

13.4

[email protected]

Source: Company, Angel Research; Note: CMP as of February 23, 2016

Please refer to important disclosures at the end of this report

Cipla | 3QFY2016 Result Update

Exhibit 1: 3QFY2016 ( Consolidated) performance

Y/E March (` cr)

3QFY2016

2QFY2016

% chg qoq

3QFY2015

% chg yoy 9MFY2016 9MFY2015

% chg yoy

Net sales

3,027

3,362

(10.0)

2,625

15.3

10,166

7,902

28.7

Other income

158.6

116.6

36.0

181.4

(12.6)

400.1

455.4

(12.1)

Total income

3,186

3,479

(8.4)

2,806

13.5

10,566

8,357

26.4

Gross profit

1783

2145

(16.9)

1635

9.1

6463

4871

32.7

Gross margin

58.9

63.8

62.3

63.6

61.6

Operating profit

364

699

(47.9)

413

(11.8)

2036

1303

56.3

OPM (%)

12.0

20.8

15.7

20.0

16.5

Interest

23.0

50.3

(54.3)

44.7

(48.7)

125

(0.3)

Depreciation

137

134

2.6

122

13.1

400

369

8.5

PBT

363

631

(42.6)

428

(15.3)

1911

1264

51.2

Provision for taxation

181

(93.4)

(87.3)

443

297

49.3

PAT before extra-ordinary item

351

450

(22.1)

334

5.1

1468

967

51.7

Share of Profit /( loss ) of asso.

(10)

(19)

(7)

(46)

Extra-ordinary items/(income)

PAT after extra-ordinary item

343

431

(20.5)

328

4.7

1425

921

54.7

Adj. PAT

343

431

(20.5)

328

4.7

1425

921

54.7

EPS (`)

4.3

5.4

4.1

17.7

11.5

Source: Company, Angel Research

Exhibit 2: 3QFY2016 - Actual vs. Angel estimates

(` cr)

Actual

Estimates

Variance

Net sales

3,027

3,367

(10.1)

Other income

159

100

58.6

Operating profit

364

669

(45.5)

Tax

168

(92.9)

Net profit

343

400

(14.3)

Source: Company, Angel Research

Top-line growth lower than expected

Sales for the quarter came in at `3,027cr (V/s `3,367cr expected) V/s `2,625cr in

3QFY2015, a yoy growth of 15.3%, mainly led by exports. Domestic sales

(`1,194cr) posted a dip of 0.4%, while exports (`1,833cr) posted a yoy growth of

28.5%.

The growth in the top-line came through a 28.5% yoy growth in exports (`1,833cr)

driven by formulation exports (on back of generic Nexium). API exports on the

other hand posted an 8.2% yoy de-growth during the quarter. Formulation exports

(`1,689.2cr) posted a yoy growth of 33.1%.

Domestic sales de-grew by 0.4% yoy to `1,194cr. Domestic formulations sales

were flat in 3QFY2016 due to change in distribution policy. Excluding impact of

distribution policy changes, domestic business grew at

~11% yoy. The

Management expects this to normalize in the coming quarters.

Overall, the Indian business contributed 39.4% to overall sales, while the balance

60.6% was contributed by exports.

February 23, 2016

Cipla | 3QFY2016 Result Update

Exhibit 3: Sales Trend

3,000

2,500

2,000

1,500

1,000

500

3QFY2015

4QFY2015

1QFY2016

2QFY2016

3QFY2016

Domestic

Export

Source: Company

Operating profit margin lower than expected

On the operating front, the OPM came in at 12.0% V/s 19.9% expected and V/s

15.7% in 3QFY2015. The lower OPM yoy was owing to of decline in the GPM

which came in at 58.9% V/s 63.9% expected and V/s 62.3% in 3QFY2015.

According to the Management, the revenues took a 2.5% impact on account of

change in distribution policy and an ~0.7% impact on back of currency impact of

ZAR. In the corresponding period of last year the company had a 2% dip in

margins due to an one-off expenditure. The R&D expenditure during the quarter

was 8% of sales compared to 6% of sales during the corresponding period of last

year.

Exhibit 4: OPM Trend

30.0

25.0

25.5

20.8

20.0

15.7

15.0

12.0

10.0

13.3

5.0

0.0

3QFY2015

4QFY2015

1QFY2016

2QFY2016

3QFY2016

Source: Company

Net profit lower than expectation

The Adj. net profit came in at `343cr V/s `400cr expected and V/s `328cr in

3QFY2015, registering a yoy growth of 4.7%. While the OPM has come in lower

than our expectation, still the Adj. net profit grew on back of an 87.3% yoy dip in

tax expenses.

February 23, 2016

Cipla | 3QFY2016 Result Update

Exhibit 5: Net Profit Trend

800

700

651

600

500

431

400

343

328

260

300

200

100

3QFY2015

4QFY2015

1QFY2016

2QFY2016

3QFY2016

Source: Company

Concall takeaways

 Tax is expected at around 22-23% of PBT in FY2016.

 Invagen acquisition is to get completed by 4QFY2016.

 Base business EBITDA margin expected to be ~18% in near term.

 In 3QFY2016, the US business included base level business of Esomeprazole.

the same is expected to continue, which is significantly lower than that

captured in the first half of the year.

Recommendation rationale

Export segment to be the growth driver: Cipla exports to more than 180 countries,

with growth coming through marketing alliances and distribution tie-ups in various

markets. Exports contributed 53% to the total turnover in FY2015, with Africa, US

and Latin America constituting more than ~60% of total exports. In the US, Cipla

has a strong product pipeline of 147 ANDAs, out of which, 79 are approved.

Another long term growth driver for the company is the launch of the CFC-free

inhalers in the regulated markets. CFC-free inhalers in Europe and US address a

potential market size of more than US$3bn.

During the quarter, the company strengthened its foothold in the US through the

acquisition of InvaGen Pharma and Exelan Pharma. The companies added a

pipeline of ~70 ANDAs, of which 40 are approved (32 marketed) and 30

awaiting approval. The company is likely to add over USD250mn in FY2017. The

deal is expected to conclude by December 2015. It will also provide manufacturing

capabilities in the US. Overall, we expect the company’s exports to grow at a

CAGR of 23.5% during FY2015-17E.

Increasing penetration in the domestic market: Cipla is one of the largest players

in the domestic formulation market, with a market share of around

5.3%.

Domestic formulations contributed 43% to the company’s total turnover in FY2015.

The company is the market leader in key therapeutic areas such as respiratory

care, anti-viral and urological. Cipla’s distribution network in India consists of a

field force of around 7,000-8,000 employees. The company plans to increase its

February 23, 2016

Cipla | 3QFY2016 Result Update

focus on domestic markets with new therapies such as oncology and neuro-

psychiatry in the offing. The company plans to focus on growing its market share

and sales by increasing penetration in the Indian market, especially in rural areas,

and plans to expand its product portfolio by launching biosimilars, particularly

relating to the oncology, anti-asthmatic and anti-arthritis categories. Overall we

expect the company’s domestic formulation business to post a CAGR of 12.5%

over FY2015-17E, on back of muted 1HFY2016 performance.

Valuation: We expect the company to post an 18.7% CAGR in net sales to

`16,447cr and EPS to record a 18.3% CAGR to `27.5 over FY2015-17E. The

growth in the top-line would be driven by domestic formulation sales and exports.

We maintain our buy stance on the stock.

Exhibit 6: Key assumptions

Key assumptions

FY2016E

FY2017E

Domestic growth (%)

6.0

15.0

Exports growth (%)

28.0

19.2

Growth in employee expenses (%)

20.0

22.0

Operating margins (excl tech. know-how fees) (%)

20.2

18.6

Source: Company, Angel Research

Exhibit 7: One-year forward PE band

800

700

600

500

400

300

200

100

Price

10x

15x

20x

25x

Source: Company, Angel Research

February 23, 2016

Cipla | 3QFY2016 Result Update

Exhibit 8: Recommendation Summary

Company

Reco

CMP Tgt. price Upside

FY2017E

FY15-17E

FY2017E

(`)

% PE (x) EV/Sales (x) EV/EBITDA (x) CAGR in EPS (%) RoCE (%) RoE (%)

Alembic Pharma

Neutral

618

21.5

3.0

15.3

38.2

31.3

31.2

Aurobindo Pharma Buy

655

856

30.7

15.3

2.5

10.9

15.6

23.5

30.2

Cadila Healthcare Accumulate

330

352

6.8

18.7

2.8

12.8

24.6

25.2

29.0

Cipla

Buy

523

605

15.8

19.0

2.5

17.7

18.3

16.7

16.1

Dr Reddy's

Buy

3,075

3,933

27.8

17.2

2.6

11.1

17.2

19.1

20.4

Dishman Pharma Neutral

295

14.8

1.6

7.5

15.9

9.4

11.0

GSK Pharma*

Neutral

3,217

47.1

8.2

37.2

6.6

33.7

34.3

Indoco Remedies

Neutral

251

18.5

2.0

11.1

23.0

19.7

Ipca labs

Buy

622

900

44.8

22.2

2.2

12.1

17.9

11.8

14.0

Lupin

Neutral

1,777

26.0

4.5

16.6

13.1

29.6

24.7

Sanofi India*

Neutral

4,304

28.4

3.7

17.7

33.1

27.9

25.5

Sun Pharma

Accumulate

871

950

9.1

32.4

5.8

18.7

8.4

15.8

16.6

Source: Company, Angel Research; Note: * December year ending

Company Background

Cipla is a leading pharmaceutical company with a strong presence in both, the

export and domestic markets. On the exports front, where it follows the partnership

model, it has 5,700 product registrations in around 180 countries. Cipla is a

market leader in the domestic formulation market with ~5.3% market share. The

company is likely to continue on the growth trajectory owing to its entry into the

inhalers market in the EU and potential new long-term manufacturing contracts

with Global Innovators.

February 23, 2016

Cipla | 3QFY2016 Result Update

Profit & loss statement (Consolidated)

Y/E March (` cr)

FY2012

FY2013

FY2014

FY2015

FY2016E

FY2017E

Gross sales

6,956

8,196

9,902

11,861

14,194

16,700

Less: Excise duty

108.1

108.7

149.3

179.7

215.0

253.0

Net sales

6,848

8,087

9,753

11,681

13,979

16,447

Other operating income

173

193

348

Total operating income

7,021

8,279

10,100

12,029

14,326

16,795

% chg

11.0

17.9

22.0

19.1

17.2

Total expenditure

5,362

6,081

7,967

9,612

11,161

13,396

Net raw materials

2,739

2,953

3,875

4,556

5,242

6,414

Other mfg costs

705

641

827

993

1,142

1,313

Personnel

773

1,036

1,543

2,083

2,499

3,049

Other

1,145

1,451

1,722

1,981

2,278

2,620

EBITDA

1,486

2,005

1,786

2,069

2,818

3,051

% chg

9.1

35.0

(11.0)

15.9

36.2

8.3

(% of Net Sales)

21.7

24.8

18.3

17.7

20.2

18.6

Depreciation & amort.

312

330

373

457

502

544

EBIT

1,174

1,675

1,413

1,613

2,316

2,508

% chg

7.8

42.7

(15.6)

14.1

43.6

8.3

(% of Net Sales)

17.1

20.7

14.5

13.8

16.6

15.2

Interest & other charges

146

140

Other Income

176

235

266

(% of PBT)

11.9

11.4

14.1

12.4

9.5

8.9

Recurring PBT

1,485

2,069

1,881

2,141

2,790

2,981

% chg

27.2

39.3

(9.1)

13.8

30.3

6.9

Extraordinary exp./(Inc.)

36.9

(26.7)

PBT (reported)

1,448

2,095

1,881

2,141

2,790

2,981

Tax

306.5

544.3

463.4

535.3

697.4

745.3

(% of PBT)

21.2

26.0

24.6

25.0

PAT (reported)

1,141

1,551

1,417

1,606

2,092

2,236

Add: Share of earnings of asso.

(6)

(12)

(11)

Less: Minority interest (MI)

Prior period items

PAT after MI (reported)

1,144

1,545

1,388

1,578

2,064

2,208

ADJ. PAT

1,173

1,524

1,388

1,578

2,064

2,208

% chg

18.1

30.0

(8.9)

13.6

30.8

7.0

(% of Net Sales)

16.7

19.1

14.2

13.5

14.8

13.4

Basic EPS (`)

14.6

19.0

17.3

19.6

25.7

27.5

Fully Diluted EPS (`)

14.6

19.0

17.3

19.6

25.7

27.5

% chg

18.1

30.0

(8.9)

13.6

30.8

7.0

February 23, 2016

Cipla | 3QFY2016 Result Update

Balance sheet (Consolidated)

Y/E March (` cr)

FY2012

FY2013

FY2014

FY2015

FY2016E

FY2017E

SOURCES OF FUNDS

Equity share capital

161

Preference Capital

Reserves & surplus

7,478

8,858

9,890

10,629

12,505

14,524

Shareholders funds

7,639

9,019

10,050

10,801

12,665

14,685

Minority interest

180

Total loans

29.2

966.9

1,247.9

1,701.8

700.0

701.0

Other long term liabilities

30.0

32.6

Long Term Provisions

31.2

50.4

77.4

168.4

Deferred tax liability

233.2

280.5

309.0

284.6

Total liabilities

7,963

10,347

11,767

13,169

14,032

16,052

APPLICATION OF FUNDS

Gross block

4,626

5,318

6,183

6,868

7,468

8,068

Less: acc. depreciation

1,411

1,708

2,180

2,634

3,136

3,679

Net block

3,215

3,610

4,003

4,234

4,332

4,388

Capital work-in-progress

371

378

442

Goodwill

2,493

2,735

Investments

1,269

2,532

709

640

Long Term Loans and Adv.

378

363

301

419

432

508

Current assets

4,116

4,775

5,340

7,201

7,828

10,135

Cash

143

175

564

419

1,418

Loans & advances

568

573

596

701

839

987

Others

3,458

4,058

4,569

5,936

6,570

7,730

Current liabilities

1,387

1,311

1,634

2,501

2,376

2,796

Net current assets

2,729

3,464

3,706

4,700

5,451

7,339

Mis. Exp. not written off

112

Total assets

7,963

10,347

11,767

13,169

14,032

16,052

February 23, 2016

Cipla | 3QFY2016 Result Update

Cash flow statement (Consolidated)

Y/E March (` cr)

FY2012

FY2013

FY2014

FY2015

FY2016E FY2017E

Profit before tax

1,448

2,095

1,881

2,141

2,790

2,981

Depreciation

312

330

373

457

502

544

(Inc)/Dec in Working Capital

370

(667)

(149)

(722)

(910)

(965)

Direct taxes paid

275

518

431

537

906

Cash Flow from Operations

1,855

1,241

1,673

1,339

1,476

2,560

(Inc.)/Dec.in Fixed Assets

(472)

(698)

(930)

(684)

(600)

(Inc.)/Dec. in Investments

(678)

(1,263)

1,824

Other income

Cash Flow from Investing

(1,150)

(1,961)

894

(616)

(600)

Issue of Equity

Inc./(Dec.) in loans

(482)

957

311

545

(1,002)

Dividend Paid (Incl. Tax)

(187)

(188)

Others

(42)

(2,658)

(692)

168

(774)

Cash Flow from Financing

(711)

773

(2,535)

(335)

(1,022)

(961)

Inc./(Dec.) in Cash

(6)

389

(145)

999

Opening Cash balances

143

175

564

419

Closing Cash balances

143

175

564

419

1,418

February 23, 2016

Cipla | 3QFY2016 Result Update

Key Ratio

Y/E March

FY2012

FY2013

FY2014

FY2015

FY2016E

FY2017E

Valuation Ratio (x)

P/E (on FDEPS)

35.8

27.5

30.2

26.6

20.3

19.0

P/CEPS

28.8

22.4

23.8

20.6

16.4

15.3

P/BV

5.5

4.7

4.2

3.9

3.3

2.9

Dividend yield (%)

0.4

EV/Sales

6.1

5.3

4.4

3.7

3.0

2.5

EV/EBITDA

28.0

21.2

24.0

20.7

14.9

13.4

EV / Total Assets

5.2

4.1

3.6

3.3

3.0

2.5

Per Share Data (`)

EPS (Basic)

14.6

19.0

17.3

19.6

25.7

27.5

EPS (fully diluted)

14.6

19.0

17.3

19.6

25.7

27.5

Cash EPS

18.1

23.4

21.9

25.3

32.0

34.3

DPS

2.0

Book Value

95.1

112.3

125.2

134.5

157.7

182.9

Dupont Analysis

EBIT margin

17.1

20.7

14.5

13.8

16.6

15.2

Tax retention ratio

78.8

74.0

75.4

75.0

Asset turnover (x)

0.9

1.0

1.1

1.2

ROIC (Post-tax)

12.5

14.0

10.1

10.3

13.6

Cost of Debt (Post Tax)

10.1

5.0

9.9

4.3

8.7

15.0

Leverage (x)

0.0

0.1

0.0

1.0

Operating ROE

12.5

14.4

10.1

10.3

13.6

12.2

Returns (%)

ROCE (Pre-tax)

15.2

18.3

12.8

12.9

17.0

16.7

Angel ROIC (Pre-tax)

16.1

19.3

15.3

17.8

23.3

22.9

ROE

16.4

18.3

14.6

15.1

17.6

16.1

Turnover ratios (x)

Asset Turnover (Gross Block)

1.6

1.7

1.8

2.0

2.2

Inventory / Sales (days)

104

Receivables (days)

Payables (days)

WC cycle (ex-cash) (days)

146

131

124

116

117

119

Solvency ratios (x)

Net debt to equity

(0.0)

0.1

0.0

(0.0)

Net debt to EBITDA

(0.0)

0.4

0.6

0.5

0.1

(0.2)

Interest Coverage (EBIT/Int.)

February 23, 2016

Cipla | 3QFY2016 Result Update

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

DISCLAIMER

Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,

Bombay Stock Exchange Limited and MCX Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and

Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a

registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number

INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing

/dealing in securities Market. Angel or its associates including its relatives/analyst do not hold any financial interest/beneficial

ownership of more than 1% in the company covered by Analyst. Angel or its associates/analyst has not received any compensation /

managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months. Angel/analyst

has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market making activity

of the company covered by Analyst.

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.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliable

sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this

document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way

responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.

Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot

testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.

While Angel Broking Pvt. Limited endeavors 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.

Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from

or in connection with the use of this information.

Note: Please refer to the important ‘Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the

latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may

have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement

Cipla

1. Analyst ownership of the stock

2. Angel and its Group companies ownership of the stock

3. Angel and its Group companies' Directors ownership of the stock

4. Broking relationship with company covered

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

Ratings (Based on expected returns

Buy (> 15%)

Accumulate (5% to 15%)

Neutral (-5 to 5%)

over 12 months investment period):

Reduce (-5% to -15%)

Sell (< -15)

February 23, 2016