3QFY2013 Result Update | Mining

February 13, 2013

NMDC
Performance Highlights
Quarterly highlights (Standalone)
Particulars (` cr) Net sales EBITDA % margin PAT 3QFY13 2,047 1,390 67.9 1,292 3QFY12 2,822 2,261 80.1 1,859 % chg (yoy) (27.5) (38.5) (1,218)bp (30.5) 2QFY13 2,612 1,935 74.1 1,678 % chg (qoq) (21.6) (28.1) (615)bp (23.0)

BUY
CMP Target Price
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 Mining 58,182 0.9 206/142 284,653 1 19,608 5,933 5,760 NMDC.BO NMDC@IN

`147 `181
12 months

Source: Company, Angel Research

NMDC reported weaker-than-expected 3QFY2013 results on the back of lower-than-expected sales volumes as well as realizations. We maintain Buy on the stock due to its inexpensive valuations. Weak operational performance: NMDCs net sales fell by 27.5% yoy

to `2,047cr (below our estimates of `2,162cr), mainly due to lower volumes, which declined 16.9% yoy to 5.32mn tonne. Iron ore realizations also declined 13.1% yoy to `3,820/tonne.
EBITDA/tonne slumps on lower realizations: EBITDA declined by 38.5% yoy to `1,390cr. EBITDA/tonne decreased by 26.0% yoy to `2,614 due to fall in average realization. Net profit decreased by 30.5% yoy to `1,292cr (below

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 80.0 11.9 4.4 3.7

our estimate of `1,518cr).

Other updates: The company has an inventory of 5mn tonne currently; however it continues to face issues for offtake of iron ore. There is still no clarity on commencement of transportation on slurry pipeline. Outlook and valuation: Over the past five years, NMDC has traded at an average EV/EBITDA of 13.4x, compared to its current valuation of 4.0x FY2014E EV/EBITDA. Strong balance sheet, presence in sellers market (iron ore), low cost of production, high-grade mines and long mine life make NMDC an attractive bet at the current levels. Valuing the stock at 5.5x FY2014E EV/EBITDA, we derive a fair price of `181 and recommend Buy on the stock. Key financials (Standalone)
Y/E March (` cr) Net sales % chg Net profit % chg FDEPS (`) OPM (%) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

Abs. (%) Sensex NMDC

3m 5.3

1yr 10.3

3yr 21.4 10.3

(17.3) (21.7)

FY2011 11,369 82.2 6,499 88.3 16.4 76.1 9.0 3.0 38.8 50.6 3.6 4.7

FY2012 11,261 (1.0) 7,266 11.8 18.3 79.3 8.0 2.4 33.3 40.1 3.4 4.2

FY2013E 9,674 (14.1) 6,336 (12.8) 16.0 75.2 9.2 2.0 23.6 26.6 3.8 5.1

FY2014E 11,536 19.2 7,385 16.5 18.6 76.6 7.9 1.7 23.0 27.0 3.0 4.0

Bhavesh Chauhan
Tel: 022- 39357600 Ext: 6821 bhaveshu.chauhan@angelbroking.com

Vinay Rachh
Tel: 022- 39357600 Ext: 6841 vinay.rachh@angelbroking.com

Please refer to important disclosures at the end of this report

NMDC | 3QFY2013 Result Update

Exhibit 1: 3QFY2013 performance (Standalone)

Y/E March (` cr) Net Sales Raw Material % of net sales Consumption of stores & spares % of net sales Staff Cost % of net sales Other Expenditure % of net sales Total Expenditure % of net sales Operating Profit OPM% Other Operating Income EBIDTA EBITDA margins (%) Interest Depreciation Other Income Exceptional Items Profit before Tax % of net sales Tax % of PBT Net profit
Source: Company, Angel Research

3QFY13 2,047 (41) (2.0) 64 3.1 139 6.8 494 24.1 656 32.1 1,390 67.9 1,390 67.9 34 556 1,913 93.5 621 32.5 1,292

3QFY12 2,822 (33) (1.2) 60 2.1 139 4.9 396 14.0 561 19.9 2,261 80.1 2,261 80.1 34 525 2,752 97.5 893 32.4 1,859

yoy % (27.5) 22.6 7.2 0.2 24.8 17.0 (38.5)

2QFY13 2,612 (42) (1.6) 40 1.5 144 5.5 536 20.5 677 25.9 1,935 74.1 -

qoq % (21.6) (3.6) 60.8 (3.3) (7.8) (3.1) (28.1)

9MFY13 7,499 88 1.2 158 2.1 418 5.6 1,384 18.5 2,048 27.3 5,451 72.7 -

9MFY12 8,667 35 0.4 152 1.8 403 4.6 1,127 13.0 1,717 19.8 6,950 80.2 6,951 80.2 101 1,470 8,320 96.0 2,697 32.4 5,623

yoy % (13.5) 151.4 3.9 3.7 22.8 19.3 (21.6)

(38.5)

1,935 74.1 -

(28.1)

5,627 75.0 -

(19.0)

(1.7) 5.9 (30.5) (30.5) (30.5)

33 583 2,485 95.1 806 32.4 1,678

2.1 (4.6) (23.0) (23.0) (23.0)

100 1,691 7,219 96.3 2,342 32.4 4,876

(1.0) 15.0 (13.2) (13.2) (13.3)

Exhibit 2: 3QFY2013 Actual vs Angel estimates

(` cr) Net sales EBITDA EBITDA margin (%) PAT
Source: Company, Angel Research

Actual 2,047 1,390 67.9 1,292

Estimates 2,162 1,704 78.8 1,518

Variation (%) (5.3) (18.4) (1,087)bp (14.9)

February 13, 2013

NMDC | 3QFY2013 Result Update

Result highlights
Realization slumps 13.1% yoy
NMDCs net sales fell by 27.5% yoy to `2,047cr (below our estimates of `2,162cr), mainly due to lower volumes which declined 16.9% yoy to 5.32mn tonne. Iron ore realizations also declined 13.1% yoy to `3,820/tonne.
Iron ore sales volumes were low due to lower offtake from the e-auctions by the company and lower production volumes.

Exhibit 3: Sales volumes down 16.9% yoy

9 8 7 6.3 6 5 4 3 2 1 0 3QFY11 1QFY12 3QFY12 1QFY13 % yoy (RHS) 3QFY13 Sales volume 8.5 6.9 60 7.6 6.4 6.5 6.8 5.9 5.3 50 40 30

Exhibit 4: Realization decreased by 13.1% yoy

4,500 4,400 4,300 4,200 4,141 4,015 4,030 3,982 3,820 4,434 4,394 4,442 70 60 4,136 50 40

(mn tonnes)

(`/tonne)

(%)

10 0 (10) (20) (30)

4,000 3,900 3,800 3,700 3,600 3,500 3QFY11 1QFY12

20 10 0 (10) (20)

3QFY12

1QFY13

3QFY13

Average realization

% yoy (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 5: Net sales decreased by 27.5% yoy

3,500 3,000 2,500 2,783 3,062 30 2,822 2,595 2,840 2,612 2,047 20 10 0 (10) (20) (30) (40) 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 Net sales (LHS) yoy change (RHS)
Source: Company, Angel Research

(` cr)

2,000 1,500 1,000 500 0

EBITDA/tonne decreased by 26.0% yoy

EBITDA declined by 38.5% yoy to `1,390cr and EBITDA margin contracted 1,218bp yoy to 67.9%. EBITDA/tonne decreased by 26.0% yoy to `2,614 due to
fall in average realization. Other expenditure grew by 26.8% yoy to `1,131cr during the quarter.

February 13, 2013

(%)

(%)

20

4,100

30

NMDC | 3QFY2013 Result Update

Exhibit 6: EBITDA/tonne decreased by 26.0% yoy

4,000 3,500 3,000 3,196 3,230 3,268 3,214 3,532 3,062 100 3,385 3,307 2,614 80 60

Exhibit 7: EBITDA margin stood at 67.9%

3,000 2,500 2,000 72.7 86.8 81.0 79.5 76.1 80.1 81.0 67.9 74.1 100 90 80 70 60 50 40 30 20 10 0 3QFY11 1QFY12 EBITDA (LHS) 3QFY12 1QFY13 3QFY13 EBITDA margin (RHS)

(`/tonne)

2,500 2,000 1,500 1,000 500 0 3QFY11 1QFY12 3QFY12 EBITDA/tonne 1QFY13 3QFY13 % yoy (RHS)

(` cr)

(%)

1,500 1,000 500 0

20 0 (20) (40)

Source: Company, Angel Research

Source: Company, Angel Research

Net profit declined by 30.5% yoy Other income grew by 5.9% yoy to `556cr, mainly due to higher cash balance. Consequently, the net profit decreased by 30.5% yoy to `1,292cr (below our estimate of `1,518cr). Exhibit 8: Net margin stood at 63.1%
2,500 55.7 2,000 1,500 57.9 64.7 64.1 65.9 63.3 67.1 64.3 63.1 80 70 60 50

(`cr)

1,000 500 0 3QFY11 1QFY12 3QFY12 1QFY13 3QFY13 Net profit (LHS) Net profit margin (RHS)

30 20 10 0

Source: Company, Angel Research

February 13, 2013

(%)

40

(%)

40

NMDC | 3QFY2013 Result Update

Investment rationale
Iron ore capacity to expand
NMDC aims to ramp up its production capacity to 48mn tonne by FY2015 (current capacity 32mn tonne) through increased exploration of its existing mines and development of new mines (Deposit 11B and Deposit 13 in Bailadila and Kumaraswany, respectively, in Karnataka). However, given its past track record, we forecast iron ore production capacity to increase to 40mn tonne by FY2015 (compared to its target of 48mn tonne). In the near term, although we expect sales volumes to decline in FY2013, we expect them to grow by 14.3% yoy during FY2014.

Exhibit 9: Iron ore capacity expansion details

60 50 7 7 32 30 20 10 0 Current Bailadila 11/B Kurumaswamy Dep. 10, 11/A Total 2 48

Source: Company, Angel Research

Low cost producer of iron ore

NMDC is one of the lowest cost producers of iron ore on account of its highly mechanized mines, high-grade iron ore mines and logistical efficiencies. Further, NMDC (unlike other PSUs such as SAIL and Coal India) does not face issues of high employee costs as a percentage of net sales. Its staff costs/net sales ratio is the lowest compared to other PSUs.

Exhibit 10: NMDCs opex & EBITDA per tonne trend

70 60 50 66 63

(mn tonnes)

40

Exhibit 11: Employee costs as a percentage of sales

45.0 40.0 35.0 30.0 37.3 37.7 40.5

(US$/tonne)

(%)

40 30 20 10 0 11

36

25.0 20.0 18.0 13.6 6.7 4.3 4.7 17.4 15.0 10.0 5.0 -

14

16

FY2010 Opex/tonne

FY2011 EBITDA/tonne

FY2012

FY2010 NMDC

FY2011 SAIL Coal India

FY2012

Source: Company, Angel Research

Source: Company, Angel Research

February 13, 2013

NMDC | 3QFY2013 Result Update

Seeking to diversify into steel making

The Management intends to diversify its operations by moving downstream through establishing steel plants and pellet plants. Accordingly, the company aims to build an integrated 3mn tonne steel plant in Jagdalpur, Chhattisgarh. Land acquisition for the same is nearly complete, which gives comfort as land acquisition has been a major bottleneck to greenfield projects in recent times. However, we believe the steel project is not likely to be value accretive to NMDC in the initial period of operations.

Exhibit 12: Chhattisgarh steel project status

Capacity Capex Land Date of completion 3mn tonne per year `15,525cr Total land required: 1,934 acres. Total land acquired: 1,932 acres. Balance land is under allotment process. 42 months from Zero date i.e., receipt of all statutory clearance/approvals and placement of orders. Targeted period FY2015

Source: Company, Angel Research

Outlook and valuation

Over the past five years, NMDC has traded at an average EV/EBITDA of 13.4x, compared to its current valuation of 4.0x FY2014E EV/EBITDA. Strong balance sheet, presence in sellers market (iron ore), low cost of production, high-grade mines and long mine life make NMDC an attractive bet at these levels. Valuing the stock at 5.5x FY2014E EV/EBITDA, we derive a fair price of `181 and recommend Buy on the stock.

Exhibit 13: Key assumptions

FY2013E Sales volume (mn tonne) Average realization (US$/tonne)
Source: Angel Research

FY2014E
28 4,120

25 3,914

Exhibit 14: EPS Angel forecast vs consensus

Year (`) FY2013E FY2014E
Source: Bloomberg, Angel Research

Angel forecast
16.0 18.6

Bloomberg consensus 17.7 19.2

Variation (%)
(9.7) (3.0)

February 13, 2013

NMDC | 3QFY2013 Result Update

Exhibit 15: EV/EBITDA band

250,000 200,000 150,000 100,000 50,000 0 Apr-06 Jan-07 Oct-07 Jul-08 Apr-09 Jan-10 Oct-10 Jul-11 Apr-12 Jan-13 5x
Source: Bloomberg, Angel Research

(` cr)

8x

11x

17x

14x

Exhibit 16: P/E band

600 500 400
(`)

300 200 100 0 Apr-06 Jan-07 Oct-07 Jul-08 Apr-09 Jan-10 Oct-10 Jul-11 Apr-12 Jan-13 9x 14x 19x 24x

Source: Bloomberg, Angel Research

Exhibit 17: P/BV band

800 700 600 500
(`)

400 300 200 100 0 Apr-06 Jan-07 Oct-07 Jul-08 Apr-09 Jan-10 Oct-10 Jul-11 Apr-12 Jan-13 2.0x 4.0x 6.0x 8.0x

Source: Bloomberg, Angel Research

February 13, 2013

NMDC | 3QFY2013 Result Update

Exhibit 18: Recommendation summary

Companies CMP Sesa Goa NMDC Coal India MOIL Target Reco. Mcap Upside (` cr) (%) P/E (x) FY13E FY14E P/BV (x) FY13E FY14E EV/EBITDA (x) FY13E 24.6 FY14E 14.2 RoE (%) FY13E 16.3 FY14E 15.4 RoCE (%) FY13E 3.5 FY14E 5.5 (`) price (`)

166 147 348 252

183 Accum. 181 Buy

14,418 58,182 4,239

10 23 6 -

5.6 9.2 13.5 9.8

5.2 7.9 12.7 9.7

0.9 2.0 4.2 1.5

0.8 1.7 3.4 1.4

5.1 8.7 4.4

4.0 7.5 4.3

23.6 35.0 16.7

23.0 29.3 15.1

26.6 19.9 15.1

27.0 18.8 13.4

369 Accum. 219,683 - Neutral

Source: Company, Angel Research

Company background
Incorporated in November 1958, government-owned NMDC is Indias largest iron ore producer with a capacity of 36mn tonne. The company operates high-grade iron ore mines at Kirandul and Bacheli in Chhattisgarh and Donimalai in Karnataka. The average mine life of NMDC is 38 years currently.

February 13, 2013

NMDC | 3QFY2013 Result Update

Profit & loss statement (Standalone)

Y/E March (` cr) Net Sales Other operating income Total operating income % chg Total Expenditure Net Raw Materials Personnel Other EBITDA % chg (% of Net Sales) Depreciation & Amort. EBIT % chg (% of Net Sales) Interest & other Charges Other Income Recurring PBT % chg Extraordinary Inc/(Exp.) PBT (reported) Tax (% of PBT) PAT (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg FY2009 7,564 7,564 32.4 1,726 86 421 1,219 5,838 34.6 77.2 74 5,764 34.8 76.2 884 6,648 34.4 6,648 2,276 34.2 4,372 4,372 34.5 57.8 11.0 11.0 34.5 FY2010 6,239 6,239 (17.5) 1,817 211 420 1,186 4,422 (24.2) 70.9 73 4,349 (24.6) 69.7 862 5,211 (21.6) 5,211 1,760 33.8 3,451 3,451 (21.1) 55.3 8.7 8.7 (21.1) FY2011 11,369 11,369 82.2 2,722 123 492 2,107 8,646 95.5 76.1 125 8,521 95.9 75.0 1,206 9,727 86.7 9,727 3,228 33.2 6,499 6,499 88.3 57.2 16.4 16.4 88.3 FY2012 11,261 11,261 (1.0) 2,336 234 529 1,573 8,925 3.2 79.3 130 8,794 3.2 78.1 2,016 10,811 11.1 (513.0) 10,760 3,494 32.5 7,266 7,266 11.8 64.5 18.3 18.3 11.8 FY2013E 9,674 9,674 (14.1) 2,404 252 571 1,580 7,270 (18.5) 75.2 106 7,164 (18.5) 74.1 2,293 9,457 (12.5) 9,457 3,121 33.0 6,336 6,336 (12.8) 65.5 16.0 16.0 (12.8) FY2014E 11,536 11,536 19.2 2,703 317 594 1,792 8,833 21.5 76.6 127 8,706 21.5 75.5 2,316 11,022 16.5 11,022 3,637 33.0 7,385 7,385 16.5 64.0 18.6 18.6 16.5

February 13, 2013

NMDC | 3QFY2013 Result Update

Balance sheet (Standalone)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Reserves& Surplus Shareholders Funds Total Loans Deferred Tax Liability Other Long term Liabilties Long Term Provisions Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Long Term Loans and Adv. Other non- current assets Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 1,669 923 747 248 72 11,771 9,740 403 1,628 1,165 10,606 22 11,695 1,771 984 787 561 76 14,264 12,855 683 726 1,348 12,916 17 14,357 2,273 (1,174) 1,099 568 136 199 11 19,086 17,228 557 1,300 1,744 17,342 19,354 2,388 (1,199) 1,189 1,494 248 512 7 23,199 20,265 1,048 1,886 2,105 21,094 24,543 3,388 (1,306) 2,082 4,894 248 512 7 23,595 20,796 1,048 1,752 1,942 21,653 29,397 3,888 (1,433) 2,455 7,894 248 512 7 25,930 22,993 1,048 1,890 1,993 23,937 35,053 396 11,240 11,637 58 11,695 396 13,876 14,272 85 14,357 396 18,818 19,215 103 22 15 19,354 396 24,010 24,406 100 23 13 24,543 396 28,863 29,260 100 23 13 29,397 396 34,520 34,916 100 23 13 35,053 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E

February 13, 2013

10

NMDC | 3QFY2013 Result Update

Cash flow statement (Standalone)

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Others Direct taxes paid Cash Flow from Operations Inc./ (Dec.) in Fixed Assets 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 6,648 74 (785) (866) (2,292) 2,778 (389) 880 491 (728) (728) 2,541 7,199 9,740 5,207 73 926 (832) (1,770) 3,604 (422) 828 407 (895) (895) 3,115 9,740 12,855 9,726 122 (525) (1,144) (3,318) 4,862 (456) (3,961) (4,417) (994) (0) (994) (550) 1,648 1,153 FY2012 FY2013E FY2014E 10,760 184 (889) (1,962) (3,502) 4,595 (1,211) 472 (739) (1,911) (0.1) (1,911) 1,945 1,153 3,098 9,457 106 (29) (3,121) 6,414 (4,400) (4,400) (1,483) (1,483) 531 3,098 20,796 11,022 127 (86) (3,637) 7,425 (3,500) (3,500) (1,728) (1,728) 2,197 20,796 22,993

February 13, 2013

11

NMDC | 3QFY2013 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) 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.) (0.8) (1.7) (0.9) (2.9) (0.9) (2.0) (0.8) (2.3) (0.7) (2.9) (0.7) (2.6) 4.9 64 50 81 33 3.6 60 25 105 34 5.6 56 16 54 11 4.8 72 24 63 21 3.3 65 24 63 27 3.2 60 24 63 22 57.7 454.4 43.9 33.4 347.9 26.6 50.6 744.9 38.8 40.1 444.2 33.3 26.6 239.0 23.6 27.0 236.0 23.0 76.2 65.8 5.2 261.7 69.7 66.2 3.8 174.0 75.0 66.8 6.7 333.3 78.1 67.7 3.7 197.7 74.1 67.0 1.6 77.5 75.5 67.0 1.1 57.9 11.0 11.0 11.2 2.2 29.4 8.7 8.7 8.9 1.7 36.0 16.4 16.4 16.7 2.2 48.5 18.3 18.3 18.7 3.2 61.6 16.0 16.0 16.2 3.2 73.8 18.6 18.6 18.9 3.7 88.1 13.3 13.1 5.0 1.5 6.4 8.3 4.1 16.9 16.5 4.1 1.2 7.3 10.3 3.2 9.0 8.8 3.0 1.5 3.6 4.7 2.1 8.0 7.9 2.4 2.1 3.4 4.2 1.5 9.2 9.0 2.0 2.2 3.8 5.1 1.3 7.9 7.8 1.7 2.5 3.0 4.0 1.0 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E

February 13, 2013

12

NMDC | 3QFY2013 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

NMDC 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%)

February 13, 2013

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