2QFY2013 Result Update | Auto Ancillary

November 9, 2012

Amara Raja Batteries

Performance Highlights
Y/E March (` cr) Net Sales EBITDA EBITDA Margin (%) Adj. PAT
Source: Company, Angel Research

ACCUMULATE
CMP Target Price
% chg (yoy) 27.9 33.8 73bp 53.2 1QFY13 694 120 17.2 76 % chg (qoq) 3.6 (1.3) (81)bp 4.4

`258 `270
12 Months

2QFY13 719 118 16.4 79

2QFY12 562 88 15.7 52

Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Auto Ancillary 4,400 (308) 0.5 267/90 31,390 1.0 18,684 5,686 AMAR.BO AMRJ@IN

Amara Raja Batteries (AMRJ) registered impressive results for 2QFY2013 driven by double-digit growth in the automotive replacement and UPS batteries segments. We expect the company to sustain its growth momentum going ahead, led by widening reach, strong product offerings and increasing capacity. We revise our revenue and earnings estimates upwards to factor in the strong operating performance during the quarter. Nonetheless, due to limited upside from the current levels we recommend an Accumulate rating on the stock. 2QFY2013 performance beats estimates: AMRJ posted an impressive growth of 27.9% yoy (3.6% qoq) in its top-line to `719cr led by strong double digit volume growth in the automotive replacement battery segment. Further, sustained momentum in the tubular and home UPS segment also aided the top-line growth. However, the automotive OEM and industrial battery businesses reported a marginal growth led by sluggish demand environment. The EBITDA margin witnessed a 73bp yoy expansion to 16.4% largely due to superior product-mix. During the quarter, the raw-material expense as a percentage of sales declined 121bp yoy mainly due to a decline in lead prices. However, on a qoq basis, margins contracted 81bp due to 19.9% increase in other expenditure on account of escalating conversion and distribution costs owing to power shortage. Led by a strong operating performance and significant increase in other income, the adjusted net profit registered a 53.2% yoy (4.4% qoq) growth to `79cr. Outlook and valuation: Due to the strong performance over the last six quarters, AMRJ has narrowed the valuation gap over the market leader, Exide from 30-35% to ~20% currently. We estimate AMRJs top-line to witness a strong CAGR of ~18% over FY201214E, leading to a ~26% CAGR in its net profit, aided by sustained growth in the automotive and industrial battery volumes. At `258, AMRJ is trading at 13x FY2014E earnings. We recommend an Accumulate rating on the stock with a target price of `270, valuing the stock at 13.6x (15% discount to Exides multiple of 16x) FY2014E EPS.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 52.1 21.7 12.1 14.1

Abs. (%) Sensex AMRJ

3m 6.4 64.4

1yr 7.6 140.1

3yr 13.2 222.3

Key financials (Standalone)

Y/E March (` cr) Net Sales % chg Net Profit % chg EBITDA (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2011 1,761 20.3 148 (6.9) 14.6 8.7 29.7 6.8 24.9 30.3 2.5 17.2

FY2012 2,367 34.4 215 45.2 15.0 12.6 20.5 5.3 29.3 35.9 1.8 12.0

FY2013E 2,911 23.0 295 37.4 16.1 17.3 14.9 4.1 31.1 39.2 1.4 8.9

FY2014E 3,321 14.1 339 14.7 16.2 19.8 13.0 3.2 27.6 35.8 1.2 7.6

Yaresh Kothari
022-3935 7800 Ext: 6844 yareshb.kothari@angelbroking.com

Please refer to important disclosures at the end of this report

Amara Raja Batteries | 2QFY2013 Result Update

Exhibit 1: 2QFY2013 financial performance (Standalone)

Y/E March (` cr) Net Sales Consumption of RM (% of Sales) Purchases of TG (% of Sales) Employee expense (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit OPM (%) Interest Depreciation Other Income PBT (excl. Extr. Items) Extr. Income/(Expense) PBT (incl. Extr. Items) (% of Sales) Provision for Taxation (% of PBT) Reported PAT Adj PAT Adj. PATM Equity capital (cr) Reported EPS (`) Adjusted EPS (`)
Source: Company, Angel Research

2QFY13 719 420 58.4 52 7.3 30 4.2 99 13.7 601 118 16.4 1 13 7 111 (9) 102 14.2 32 31.1 70 79 11.1 17.1 4.1 4.7

2QFY12 562 371 66.1 5 0.8 22 3.8 76 13.6 474 88 15.7 1 12 1 77 77 13.7 25 32.5 52 52 9.2 17.1 3.0 3.0

% chg (yoy) 27.9 13.0 1,033.6 40.2 28.9 26.8 33.8 (38.2) 13.3 402.6 44.6 32.4 26.7 35.2 53.2

1QFY13 694 411 59.3 52 7.4 29 4.2 82 11.8 574 120 17.2 0 13 6 112 112 16.2 36 32.3 76 76 11.0 17.1

% chg (qoq) 3.6 2.0 (1.5) 1.6 (1.9) 3.1 (0.5) 19.9 15.7 4.6 (1.3) (4.7) 431.5 2.1 19.9 (1.1) (9.4) (12.5) (12.6) (3.5) (7.9) 4.4 0.8 0.0 (7.9) 4.4

1HFY13 1,413 831 58.8 104 7.4 59 4.2 181 12.8 1,175 237 16.8 1 26 13 223 (9) 214 15.2 68 31.7 146 156 11.0 17.1 8.6 9.1

1HFY12 1,087 721 66.3 24 2.2 45 4.1 141 13.0 931 156 14.3 1 22 2 135 135 12.4 44 32.6 91 91 8.4 17.1 5.3 5.3

% chg (yoy) 30.0 15.3 329.8 32.0 28.3 26.2 52.3 (39.9) 17.4 432.5 65.8 58.8 54.5 60.9 71.2

35.2 53.2

4.5 4.5

60.9 71.2

Better-than-expected growth in top-line: AMRJ registered an impressive 27.9% yoy (3.6% qoq) growth in its top-line to `719cr driven by a strong double digit growth in the automotive replacement segment. Further, sustained momentum in the tubular and home UPS segments also aided the top-line growth. However, the automotive OEM and industrial battery business reported a marginal growth led by a sluggish demand environment. The company is expanding its four-wheeler battery manufacturing capacity at the Chittoor plant from 5.6mn units a year to 6mn units by 3QFY2013 at an outlay of `14cr. AMRJs capacity utilization for four-wheeler batteries is currently at ~90% and the management expects to remain at current levels in 2HFY2013. Of the existing capacity of 5.6mn four-wheeler batteries, around one-third is supplied to the original equipment manufacturers (OEMs) and the remaining to the replacement segment. For the two-wheeler battery segment, out of the installed capacity of 4.8mn batteries, around 3.6mn units are supplied to the replacement segment. The company intends to increase the two-wheeler battery capacity with an investment outlay of ~`100cr as it is on course of entering the OEM business.

November 9, 2012

Amara Raja Batteries | 2QFY2013 Result Update

Exhibit 2: Strong top-line growth of 27.9% yoy

(` cr) 800 700 600 500 400 300 200 100 0 8.7 392 426 501 525 562 613 672 694 719 15.8 15.7 17.5 Net sales (LHS) 43.2 yoy growth (RHS) 44.1 34.1 32.2 (%) 50.0 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0

27.9

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

Source: Company, Angel Research

EBITDA margin remains strong: During 2QFY2013, operating margins witnessed a 73bp yoy expansion to 16.4% largely due to superior product-mix. During the quarter, the raw-material expense as a percentage of sales declined 121bp yoy mainly due to decline in lead prices. However, on a qoq basis, margins contracted 81bp due to 19.9% increase in other expenditure on account of escalating conversion and distribution costs owing to power shortage. As a result, the operating profit jumped 33.8% yoy (flat qoq) to `118cr.

Exhibit 3: Average lead price trend

(US $/tonne) 5,000 4,000 3,000 2,000 1,000 0
Lead inventory (RHS) Lead prices (LHS)

Exhibit 4: EBITDA margin at 16.4%; beats estimates

(tonne) 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 (%) 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 14.2 16.0 14.2 12.9 15.7 17.3 14.2 17.2 16.4 63.9 64.1 EBITDA margin 67.3 70.3 66.9 Raw-material cost/sales 66.4 66.2 66.7 65.7

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13
2QFY13

Mar-07

Dec-09

Apr-06

Jan-09

Nov-10

Feb-08

Oct-11

Source: Company, Angel Research

Sep-12

Source: Company, Angel Research

Adjusted net profit beats estimates; up 53.2% yoy: Led by a strong operating performance and significant increase in other income, the adjusted net profit registered a 53.2% yoy (4.4% qoq) growth to `79cr.

November 9, 2012

Amara Raja Batteries | 2QFY2013 Result Update

Exhibit 5: Adjusted net profit ahead of estimates

(`cr) 90 80 70 60 50 40 30 20 10 0 32 40 41 39 52 66 58 76 79 8.1 9.3 8.2 7.4 Net profit (LHS) 9.2 Net profit margin (RHS) 11.0 10.7 8.7 11.1 (%) 12.0 10.0 8.0 6.0 4.0 2.0 0.0

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

Source: Company, Angel Research

November 9, 2012

2QFY13

Amara Raja Batteries | 2QFY2013 Result Update

Investment arguments
AMRJ is Indias second-largest manufacturer of lead batteries, with a market share of ~28%. US based Johnson Controls is a joint venture partner of AMRJ and holds a 26% equity stake in the company. The automotive and industrial battery segments contributed ~55% and ~45% respectively to AMRJs overall revenue in FY2012. We expect the automotive battery market to post a ~15% CAGR in sales over FY201214E, led by healthy growth in replacement demand, a 10-12% CAGR in new vehicle sales and shrinking market share of unorganized players. Thus, during FY201214E, we expect AMRJs automotive battery segment to post a ~18% revenue CAGR. Also, with a strong focus on strengthening its distribution network, we expect AMRJ to increase its market share to ~30% by FY2013E. AMRJ pioneered the use of maintenance-free batteries with a presence in the railway signaling, telecom, power and supply solutions segments. Going forward, we expect the power backup (home UPS) segment to drive demand for industrial batteries, leading to a ~13% revenue CAGR in AMRJs industrial battery segment over FY201214E.

Outlook and valuation

We expect the company to sustain its growth momentum going ahead, led by widening reach, strong product offerings and increasing capacity. We revise our revenue and earnings estimates upwards to factor in the strong operating performance during the quarter. We estimate AMRJs top-line to witness a strong CAGR of ~18% over FY201214E, leading to a ~26% CAGR in its net profit, aided by sustained growth in the automotive and industrial battery volumes.

Exhibit 6: Change in estimates

Y/E March Net Sales (` cr) OPM (%) EPS (`)
Source: Company, Angel Research

Earlier Estimates 2,844 15.4 271 3,275 15.6 321

Revised Estimates 2,911 16.1 295 3,321 16.2 339

% chg 2.4 73bp 8.8 1.4 60bp 5.4

FY2013E FY2014E FY2013E FY2014E FY2013E FY2014E

On the valuation front, AMRJ is trading at 13x FY2014E earnings and at a ~20% discount to Exide (adjusted for its insurance business). Although, AMRJ has always traded at a discount to Exide (due to Exides leadership position, scale of operations, superior margins and return ratios), the valuation gap has narrowed over the last six quarters backed by strong operating performance by AMRJ. We expect the discount to narrow further to 15% led by a) increasing scale of operations, b) sustainable revenue and earnings visibility and c) improving return ratios. At `258, AMRJ is trading at 13x FY2014E earnings. We recommend Accumulate rating on the stock with a target price of `270, valuing the stock at 13.6x (15% discount to Exides multiple of 16x) FY2014E EPS.

November 9, 2012

Amara Raja Batteries | 2QFY2013 Result Update

Exhibit 7: Angel vs consensus forecast

Angel estimates FY13E Net sales (` cr) EPS (`) 2,911 17.3 FY14E 3,321 19.8 Consensus FY13E 2,860 16.6 FY14E 3,371 20.0 Variation (%) FY13E 1.8 4.2 FY14E (1.5) (0.8)

Source: Company, Angel Research

Exhibit 8: One-year forward P/E band

(`) 300 250 200 150 100 50 0 CMP (`) 5x 8x 11x 14x

Exhibit 9: AMRJ P/E Premium/Discount to Exide

(%) 0.0 (10.0) (20.0) (30.0) (40.0) (50.0) (60.0) (70.0) (80.0) (90.0) (100.0) prem./ disc. to Exide Five-yr average Prem/Disc

Feb-07

Sep-05

May-06

Jul-08

May-11

Dec-04

Dec-09

Mar-09

Aug-10

Apr-04

Oct-07

Jan-12

Jan-02

Jan-07

Mar-06

Nov-02

Nov-07

Mar-11

Apr-01

Jan-12

Sep-03

Sep-08

May-05

May-10

Oct-12

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 10: Auto Ancillary Recommendation summary

Company Amara Raja Batteries Automotive Axle Bharat Forge* Bosch India# Exide Industries FAG Bearings Subros
# ^

Reco. Accumulate Accumulate Buy Neutral Accumulate Neutral Neutral Accumulate

CMP (`) 258 375 262 8,859 138 1,751 162 31

Tgt. price (`) 270 430 324 155 35

#

Upside (%) 5.0 14.7 23.8 12.4 12.9

P/E (x) FY13E 14.9 10.1 14.0 26.7 19.3 17.0 20.1 8.3
^

EV/EBITDA (x) FY13E 8.9 5.3 6.8 17.0 10.6 10.4 8.1 4.8 FY14E 7.6 4.2 5.7 13.0 8.3 8.0 6.6 4.3 13.0 8.7 11.3 21.2 15.4 13.8 15.3 5.3

RoE (%) FY13E 31.1 21.2 18.5 18.7 18.5 21.3 22.9 8.2 FY14E 27.6 21.2 19.7 19.5 19.9 21.6 24.7 12.2

FY12-14E EPS CAGR (%) 25.5 6.2 14.6 10.9 28.4 9.5 56.2 7.7

FY14E

Motherson Sumi*

Source: Company, Angel Research; Note: * Consolidated results;

December year end;

September year end

Company background
Amara Raja Batteries, a JV between Galla family and Johnson Controls, US, is India's second largest manufacturer in the organized valve-regulated lead-acid (VRLA) batteries market finding applications in the automotive (~55% of total revenue) and industrial (~45% of total revenue) segments. AMRJ has a market share of 26% in four-wheeler OEMs, 19% in four-wheeler replacement and 25% in two-wheeler replacement battery markets. The company also commands dominant market shares of 46% and 32% in the telecom and UPS battery segments respectively. AMRJ derives ~45% and ~35% of its industrial segment's revenue from the telecom and UPS battery segments respectively.

November 9, 2012

Oct-12

Jul-04

Jul-09

Amara Raja Batteries | 2QFY2013 Result Update

Profit and loss statement (Standalone)

Y/E March (` cr) Total operating income % chg Total expenditure Net raw material costs Other mfg costs Employee expenses Other EBITDA % chg (% of total op. income) Depreciation & amortization EBIT % chg (% of total op. income) Interest and other charges Other income Recurring PBT Extraordinary expense PBT (reported) Tax (% of PBT) PAT (reported) ADJ. PAT % chg (% of total op. income) Basic EPS (`) Adj. EPS (`) % chg FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 1,313 21.2 1,144 869 48 52 175 169 (5.5) 12.9 35 135 (12.9) 10.3 20 8 123 (0) 123 42 34.4 80 81 (14.7) 6.1 9.4 9.4 (43.1) 1,464 11.5 1,176 880 61 62 173 288 70.4 19.7 43 246 82.3 16.8 8 17 255 8 255 88 34.4 167 159 97.7 10.9 19.6 18.6 97.7 1,761 20.3 1,504 1,158 86 88 171 257 (10.8) 14.6 42 216 (12.2) 12.2 3 8 220 220 72 32.8 148 148 (6.9) 8.4 17.3 17.3 (6.9) 2,367 34.4 2,013 1,596 92 100 225 354 37.5 15.0 46 308 42.6 13.0 4 15 319 319 104 32.5 215 215 45.2 9.1 25.2 25.2 45.2 2,911 23.0 2,441 1,926 113 124 278 470 32.8 16.1 55 415 34.9 14.3 3 23 434 434 139 32.0 295 295 37.4 10.1 17.3 17.3 37.4 3,321 14.1 2,782 2,197 132 143 310 539 14.7 16.2 65 475 14.4 14.3 3 26 498 498 159 32.0 339 339 14.7 10.2 19.8 19.8 14.7

November 9, 2012

Amara Raja Batteries | 2QFY2013 Result Update

Balance sheet statement (Standalone)

Y/E March (` cr) SOURCES OF FUNDS Equity share capital Reserves & surplus Shareholders Funds Total loans Deferred tax liability Other long term liabilities Long term provisions Total Liabilities APPLICATION OF FUNDS Gross block Less: Acc. depreciation Net Block Capital work-in-progress Investments Long term loans and advances Other noncurrent assets Current assets Cash Loans & advances Other Current liabilities Net current assets Total Assets 427 146 281 40 47 526 70 87 369 184 342 710 491 185 306 23 16 631 62 109 460 319 312 656 539 224 315 38 16 15 732 45 97 590 349 383 767 621 267 355 32 16 12 937 229 121 586 407 530 944 757 322 435 45 20 12 1,198 255 189 753 536 662 1,175 888 386 501 53 25 12 1,424 359 216 848 542 882 1,474 710 656 17 389 406 286 18 17 527 544 91 22 17 629 646 90 20 10 767 17 806 823 84 22 15 944 17 1,062 1,079 59 22 15 1,175 17 1,361 1,378 59 22 15 1,474 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E

November 9, 2012

Amara Raja Batteries | 2QFY2013 Result Update

Cash flow statement (Standalone)

Y/E March (` cr) Profit before tax Depreciation Change in working capital Others Other income Direct taxes paid Cash Flow from Operations (Inc.)/Dec. in fixed assets (Inc.)/Dec. in investments Other income Cash Flow from Investing Issue of equity Inc./(Dec.) in loans Dividend paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in cash Opening Cash balances Closing Cash balances FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 123 35 (65) 194 (8) (42) 236 (90) (31) 8 (113) 6 (30) 5 (84) (104) 19 51 70 255 43 38 (17) (17) (88) 214 (47) 31 17 1 (195) 8 (36) (223) (8) 70 62 220 42 (83) (13) (8) (72) 86 (63) 0 8 (55) (1) 29 (77) (49) (17) 62 45 319 46 38 12 (15) (104) 296 (76) 0 15 (61) (0) (6) 46 (91) (51) 184 45 229 434 55 (106) (23) (139) 221 (150) (4) 23 (131) (25) 40 (65) 26 229 255 498 65 (116) (26) (159) 261 (138) (5) 26 (117) 0 40 (40) 104 255 359

November 9, 2012

Amara Raja Batteries | 2QFY2013 Result Update

Key ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (EBIT / Int.) 0.4 1.0 6.7 0.0 0.0 31.0 0.0 0.1 70.5 (0.2) (0.5) 75.7 (0.2) (0.5) 124.4 (0.2) (0.6) 172.4 3.6 49 60 30 86 3.2 47 56 35 65 3.4 52 57 38 61 4.1 43 48 31 49 4.2 40 49 31 44 4.0 42 49 31 51 19.6 22.7 21.8 35.9 42.5 33.5 30.3 30.6 24.9 35.9 44.0 29.3 39.2 46.1 31.1 35.8 43.6 27.6 10.3 0.7 2.2 14.8 4.4 14.8 16.8 0.7 2.5 27.5 2.8 27.5 12.2 0.7 2.7 22.6 2.3 22.6 13.0 0.7 3.4 29.6 3.1 29.6 14.3 0.7 3.6 35.3 3.2 35.3 14.3 0.7 3.3 32.5 3.2 32.5 4.7 4.7 6.7 0.4 23.7 9.8 9.3 11.8 1.5 31.8 8.7 8.7 11.1 2.3 37.8 12.6 12.6 15.3 1.9 48.2 17.3 17.3 20.5 2.0 63.2 19.8 19.8 23.6 2.0 80.7 54.7 38.2 10.8 0.2 3.5 27.0 6.4 26.3 21.8 8.1 0.6 3.0 15.3 6.7 29.7 23.2 6.8 0.9 2.5 17.2 5.8 20.5 16.8 5.3 0.7 1.8 12.0 4.5 14.9 12.5 4.1 0.8 1.4 8.9 3.6 13.0 10.9 3.2 0.8 1.2 7.6 2.8 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E

November 9, 2012

10

Amara Raja Batteries | 2QFY2013 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

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. 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 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 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 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 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, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 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

Amara Raja Batteries No No No No

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

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

November 9, 2012

11