1QFY2014 Result Update | Pharmaceutical

August 12, 2013

Cadila Healthcare
Performance Highlights
Y/E March (` cr) Net sales Other income Gross profit Operating profit Net profit 1QFY2014 1,608 42 1068 256 196 4QFY2013 1566 55 947 240 262 % chg (qoq) 2.7 (23.2) 12.8 6.8 (25.5) 1QFY2013 1516 88 991 267 195 % chg (yoy) 6.0 (52.0) 7.8 (4.0) 0.4

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 Pharmaceutical 14,492 2,211 0.1 964 / 694 20,506 5 18,789 5,566 CADI.BO CDH@IN

746 894
12 months

Source: Company, Angel Research

Cadila Healthcare (Cadila) reported lower-than-expected numbers for 1QFY2014. On the sales front, the company posted a 6.0% yoy growth in its top-line to end the period at `1,608cr, vs our expectation of `1,820cr. On the operating front, the margins at 16.0% came ahead of our expectation of 15.7%. While the other income came in lower than expected, the lower-than-expected interest expenses and taxations led the net profit to come in at `196cr vs our expectation of `237cr during the period, posting a flat 0.4% yoy growth during the period. We recommend a Buy with a target of `894. Below expectation results: For 1QFY2014, Cadila reported net sales of `1,608cr, up 6.0% yoy, but lower than our estimate of `1,820cr. The growth in the top-line was subdued, as both exports and domestic sales posted a muted growth during the period. While domestic sales grew by 8.6% yoy, exports grew by 5.0% yoy. On the operating front, the margins dipped by 168bp yoy but came in ahead of our expectation of 15.7%. While the other income came in lower than expected, the lower-than-expected interest expense and taxation led the net profit to come in at `196cr, posting a flat 0.4% yoy growth, vs our expectation of `237cr for the period. Outlook and valuation: We expect Cadilas net sales to post a 16.6% CAGR to `8,367cr and EPS to report an 18.1% CAGR to `44.7 over FY201315E. While, the growth momentum has slowed down, the stock has corrected significantly, making it attractive. We recommend a Buy on the stock with a revised target price of `894.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 74.8 13.9 5.7 5.6

Abs.(%) Sensex Cadila

3m (6.0)

1yr 6.8

3yr 3.6 10.3

(11.1) (20.8)

Key financials (Consolidated)

Y E March (` cr) Net sales % chg Net profit % chg EPS EBITDA margin (%) P/E (x) RoE (%) RoCE (%) P/BV (x) EV/Sales (x) EV/EBITDA (x) FY2012 FY2013 FY2014E FY2015E

5,090 14.0 650 (8.6) 31.7 17.9 22.3 27.4 17.3 5.6 3.2 17.7

6,155 20.9 655 0.8 32.0 15.0 22.1 23.3 13.2 4.8 2.6 17.6

7,123 15.7 765 16.7 37.3 15.5 19.0 22.9 14.0 4.0 2.3 14.9

8,367 17.5 915 19.7 44.7 15.7 15.8 22.9 15.2 3.3 1.9 12.4 Sarabjit Kour Nangra
+91 22 39357600 Ext: 6806 sarabjit@angelbroking.com

Source: Company, Angel Research; Note: CMP as of August 8, 2013

Please refer to important disclosures at the end of this report

Cadila Healthcare |1QFY2014 Result Update

Exhibit 1: 1QFY2014 performance (Consolidated)

Y/E March (` cr) Net Sales Other Income Total Income Gross profit Gross margin (%) Operating profit Operating Margin (%) Financial Cost Depreciation PBT Tax Adj. PAT before Extra-ordinary item Exceptional loss/(gain) Minority PAT before Extra-ordinary item & MI EPS (Rs)
Source: Company, Angel Research

1QFY2014 1,608 42 1,650 1068 66.5 256 16.0 28 47 224 20 204 0 8 196 9.5

4QFY2013 1,566 55 1,621 947 60.5 240 15.3 32 47 217 (58) 275 0 13 262 12.8

% chg (qoq) 2.7 (23.2) 1.8 12.8 6.8 (11.8) 0.0 3.3 (134.8) (25.9) (37.8) (25.5)

1QFY2013 1,516 88 1,604 991 65.4 267 17.6 45 43 266 65 201 0 6 195 9.5

% chg (yoy) 6.0 (52.0) 2.9 7.8 (4.0) (38.7) 7.2 (15.8) (68.9) 1.4

FY2013 6,155 240 6,395 3835 62.3 923 15.0 169 183 811 119 692 0 36

FY2012 5,090 224 5,314 3390 66.6 911 17.9 183 158 794 113 681 3 29 650 31.7

% chg 20.9 6.9 20.3 13.1 1.4 (7.7) 15.8 2.1 5.7 1.5

0.4

655 32.0

0.8

Exhibit 2: 1QFY2014 Actual vs. Angel estimates

` cr Net Sales Operating profit Tax Net profit
Source: Company, Angel Research

Actual 1,608 256 20 196

Estimates 1,820 285 44 237

Variance (11.7) (10.0) (53.9) (17.5)

Revenue up 6.0% yoy, but far below our expectation

Cadila reported lower-than-expected numbers for the quarter. On the sales front, the company posted a 6.0% growth in top-line to end the period at `1,608cr, vs our expectation of `1,820cr. The growth in the top-line was subdued, as both exports and domestic sales posted a muted growth during the period. While domestic sales grew 8.6% yoy, exports grew 5.0% yoy. Domestic sales were led by the formulation segment which grew by 7.5% yoy, while the wellness segment grew 11.3% yoy during the quarter. The growth in the domestic formulation market was on account of the new pricing norm. The Management expects a `90cr impact on domestic formulation sales on account of the same. The company expects the domestic formulation business to revive in 2HFY2014. On the exports front, US grew by 7.9% yoy. Emerging markets, on the other hand grew by 8.6% yoy during the period. Along with this, the other key markets like Japan and Brazil posted a dip of 12.4% and 19.5% yoy. Absence of new product approvals during the quarter impacted sales in the US and Brazil.

August 12, 2013

Cadila Healthcare |1QFY2014 Result Update

Exhibit 3: Sales trend in the US and Europe

480 400 320 359 367 392 388 387

(` cr)

240 160 85 80 0 1QFY2013 2QFY2013 US 3QFY2013 4QFY2013 Europe 1QFY2014 76 112

96

93

Source: Company, Angel Research

For 1QFY2014, the domestic segment reported an 8.6% yoy growth, with the formulations segment registering a 7.5% yoy growth. In the Consumer Healthcare division, Cadila continued to post a growth of 11.3% in 1QFY2013. Animal healthcare, on the other hand, remained flat with a de-growth of 0.1% yoy.

Exhibit 4: Sales trend in Domestic Formulation and Consumer divisions

700 600 500 582 602 570 571 625

(` cr)

400 300 200 100 0 1QFY2013 2QFY2013 3QFY2013 4QFY2013 1QFY2014 Domestic Formulation Consumer division 103 97 102 108 115

Source: Company, Angel Research

On the CRAMS front, the company generated sales of `131cr (`129cr), reporting a growth of 1.2% yoy.

OPM dips by 168bp yoy

During the quarter, the companys gross margin dipped to 66.5%, a contraction of 109bp yoy. On the operating front, the margins dipped by 168bp yoy but came in ahead of our expectation of 15.7%, to end the period at 16.0%. During the quarter, the R&D expenditure was ~6.5% of net sales vs 5.8% in 1QFY2013.

August 12, 2013

Cadila Healthcare |1QFY2014 Result Update

Exhibit 5: OPM trend

18 17.9 17 16.9 16 16 15.3

(%)

15 14 13 12 1QFY2013 2QFY2013 3QFY2013 13.6

4QFY2013

1QFY2014

Source: Company, Angel Research

Net profit much below expectation: While the other income came in lower than expected, the lower-than-expected interest expense and taxation led the net profit to come in at `196cr, posting a flat 0.4% yoy growth, vs our expectation of `237cr during the period.

Exhibit 6: Adjusted Net profit trend

300 262 250 200 195 149 103 100 50 0 1QFY2013 2QFY2013 3QFY2013 4QFY2013 1QFY2014
Source: Company, Angel Research

196

(` cr)

150

Concall takeaways
The Management is to revise the earlier US$3bn top-line target for FY2016 by the end of 2QFY2014 on account of rupee depreciation. The earlier US$3bn top-line target was based on an exchange rate of `44/US$. The Management expects a sales impact of `90cr on the domestic formulation sales on account of the new pricing policy. The company expects the domestic formulation business to revive in 2HFY2014. The company has launched 20 new products in the market, of which five were for the first time in India.

August 12, 2013

Cadila Healthcare |1QFY2014 Result Update

The growth in the US exports was subdued, on back of lack of new products. The Management guided for 5-8 approvals in FY2014 and more in FY2015. For FY2015, the company expects the US business to clock a 20% yoy growth. The company has filed 5 new ANDAs in 1QFY2014 (topical - 2). Also, it has launched its first injectable during the quarter. The cumulative ANDA filings stood at 173, with 79 approved and 94 pending for approvals. Tax rate guidance reduced from 15% of PBT in FY2014.

Recommendation rationale
Strong domestic portfolio: Cadila is the fifth largest player in the domestic market, with sales of about `2,987cr in FY2013, ~48% to its top-line. The company enjoys leadership position in the CVS, GI, women healthcare and respiratory segments, with a sales force of 4,500 MRs. The company, on an aggressive front, launched more than 90 new products in FY2013, including line extensions, of which 10 were for the first time. During FY2008-13, the company reported a ~15% CAGR in its top-line in the domestic formulation business. Further, the company has a strong consumer division through its stake in Zydus Wellness, which has premium brands, such as Sugarfree, Everyuth and Nutralite, under its umbrella. This segment which contributes ~6.5% to its sales, posted a strong growth in FY2013, registering a growth of 19.0% yoy during the year. Going forward, the company expects the segment to grow at above-industry rate on the back of new product launches and field force expansion. While FY2014, sales would be lower, however FY2015 should witness strong sales growth. During FY2013-15E, we expect the domestic segment to grow at a CAGR of 12.4%. Exports on a strong footing: Cadila has a two-fold focus on exports, wherein it is targeting developed as well as emerging markets, which contributed around 53% to its FY2013 top-line. The company has developed a formidable presence in the developed markets of US, Europe (France and Spain) and Japan. In the US, the company achieved critical scale of `1,500cr on the sales front in FY2013. Growth in US exports will be subdued in FY2014, on back of lack of new products along with price erosion among its key products and with just 5-8 approvals. However, in FY2015, the region is expected to post a growth of 20% on back of 20 approvals. In Europe, the companys growth going forward would be driven by new product launches and improvement in margin by product transfer to Indian facilities. Among emerging markets, Cadila is aggressively targeting Brazil and the CIS region. Overall, we expect the exports to grow at a CAGR of 19.6% during the period.

Outlook and valuation

We expect Cadilas net sales to post a 16.6% CAGR to `8,367cr and EPS to report an 18.1% CAGR to `44.7 over FY201315E. While the growth momentum has slowed down, the stock has corrected significantly, making it attractive. We recommend a Buy with a revised target price of `894.
August 12, 2013

Cadila Healthcare |1QFY2014 Result Update

Exhibit 7: Key Assumptions

Key assumptions Domestic growth (%) Exports growth (%) Growth in employee expenses (%) Operating margins (excl tech. know-how fees) (%) Capex (` cr)
Source: Company, Angel Research

FY2014E 10.0 8.0 15.7 15.5 650

FY2015E 15.0 20.0 17.5 15.5 650

Exhibit 8: One-year forward PE band

1,400 1,200 1,000 800 600 400 200 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13

Price
Source: Company, Angel Research

7x

14x

21x

28x

Company Background: Cadila Healthcares operations range from API to formulations, animal health products and cosmeceuticals. The group has global operations in four continents spread across USA, Europe, Japan, Brazil, South Africa and 25 other emerging markets. Having already achieved the US$1bn mark in 2011, we shall achieve sales of over US$3bn by 2015 and be a research-driven pharmaceutical company by 2020.

August 12, 2013

Cadila Healthcare |1QFY2014 Result Update

Exhibit 9: Recommendation Summary

Company Alembic Pharma. Aurobindo Pharma Cadila Healthcare Cipla Dr Reddy's Dishman Pharma GSK Pharma* Indoco Remedies Ipca labs Lupin Ranbaxy* Sanofi India* Sun Pharma Reco Accumulate Buy Buy Buy Accumulate Buy Neutral Buy Neutral Accumulate Buy Neutral Neutral CMP (`) 156 161 708 411 2,218 43 2,331 64 643 801 359 2,479 507 Tgt. price Upside (`) 165 242 894 477 2,535 73 78 904 384 % PE (x) 5.9 50.0 26.3 16.1 14.3 70.0 21.7 12.8 6.8 11.2 7.8 15.8 17.3 17.5 2.6 35.0 8.4 14.3 18.6 16.0 24.4 25.5 FY2015E EV/Sales (x) 1.5 1.0 2.0 2.7 2.5 0.8 5.9 0.8 2.2 2.6 1.2 2.3 5.9 EV/EBITDA (x) 7.8 6.1 12.7 11.9 12.5 3.5 25.0 5.6 10.2 11.9 9.2 15.0 14.5 FY13-15E CAGR in EPS (%) 25.5 26.4 18.1 12.1 10.8 16.3 (7.3) 28.0 29.1 21.0 (2.2) 15.0 8.8 FY2015E RoCE (%) 34.2 13.1 15.2 16.8 18.3 11.4 30.6 15.0 25.1 29.0 9.7 14.7 29.4 RoE (%) 34.7 18.9 22.9 16..8 21.8 11.0 27.5 14.4 25.7 25.8 19.2 17.1 22.0

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

August 12, 2013

Cadila Healthcare |1QFY2014 Result Update

Profit & Loss statement (Consolidated)

Y/E March (` cr) Gross sales Less: Excise duty Net sales Other operating income Total operating income % chg Total expenditure Net raw materials Other mfg costs Personnel Other EBITDA % chg (% of Net Sales) Depreciation& amortisation EBIT % chg (% of Net Sales) Interest & other charges Other income (% of PBT) Recurring PBT % chg Extraordinary expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Less: Minority interest (MI) PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Adj.Basic EPS (`) Adj. Fully Diluted EPS (`) % chg FY2010 3,614 40 3,574 113 3,687 25.9 2,881 1,178 150 393 1,159 694 28.3 19.4 134 560 30.5 15.7 82 16 3 606 53.9 5 602 74.1 12.3 527 22.9 505 509 55.5 14.1 24.9 24.9 3.6 FY2011 4,521 56 4,465 166 4,630 25.6 3,604 1,475 162 549 1,417 861 24.1 19.3 127 734 31.1 16.4 70 13 2 842 39.0 842 106.4 12.6 736 25.1 711 711 39.6 15.9 34.7 34.7 39.6 FY2012 5,181 91 5,090 173 5,263 13.7 4,179 1,679 320 751 1,429 911 5.8 17.9 158 753 2.6 14.8 185 53 7 794 (5.7) 3 794 113.0 14.2 681 28.6 653 650 (8.6) 12.8 31.7 31.7 (8.6) FY2013 FY2014E FY2015E 6,285 129 6,155 203 6,358 20.8 5,232 2,320 387 903 1,622 923 1.4 15.0 183 740 (1.7) 12.0 169 37 5 811 2.1 811 119.5 14.7 692 36.4 655 655 0.8 10.6 32.0 32.0 0.8 7,195 72 7,123 203 7,326 15.2 6,019 2,685 447 1,045 1,842 1,104 19.6 15.5 221 882 19.2 12.4 180 37 4 942 16.2 942 141.3 15.0 801 36.4 765 765 16.7 10.7 37.3 37.3 16.7 8,452 85 8,367 203 8,570 17.0 7,055 3,138 526 1,228 2,163 1,313 19.0 15.7 254 1,059 20.0 12.7 180 37 3 1,119 18.8 1,119 167.9 15.0 951 36.4 915 915 19.7 10.9 44.7 44.7 19.7

August 12, 2013

Cadila Healthcare |1QFY2014 Result Update

Balance Sheet (Consolidated)

Y/E March (` cr) SOURCES OF FUNDS Equity share capital Reserves & Surplus Shareholders funds Minority interest Total loans Other Long Term Liabilities Long Term Provisions Deferred tax liability Total liabilities APPLICATION OF FUNDS Gross block Less: Acc. depreciation Net block Capital Work-in-Progress Goodwill Investments Long Term Loans and Adv. Current assets Cash Loans & advances Other Current liabilities Net Current assets Mis. Exp. not written off Total assets 1,775 251 307 1,217 866 909 10 2,872 2,074 873 1,201 248 484 21 2,317 969 1,348 431 484 21 201 2,125 295 411 1,420 1,087 1,038 3,523 3,008 1,175 1,833 484 1,015 24 263 2,760 467 275 2,019 1,186 1,574 5,193 4,105 1,358 2,747 248 862 21 411 3,191 582 279 2,330 1,426 1,765 6,054 4,755 1,579 3,176 248 862 21 314 3,673 507 341 2,825 1,707 1,966 6,587 5,405 1,833 3,572 248 862 21 363 4,247 594 334 3,319 1,950 2,297 7,363 114 2,872 68 1,560 1,629 39 1,091 102 2,069 2,171 67 1,092 19 62 113 3,523 102 2,471 2,574 90 2,289 43 79 119 5,193 102 2,938 3,041 119 2,681 47 64 100 6,054 102 3,527 3,631 156 2,681 43 76 119 6,587 102 4,267 4,371 192 2,681 43 76 119 7,363 FY2010 FY2011 FY2012 FY2013 FY2014E FY2015E

August 12, 2013

Cadila Healthcare |1QFY2014 Result Update

Cash Flow Statement (Consolidated)

Y/E March (` cr) Profit before tax Depreciation (Inc)/Dec in Working Capital Less: 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 FY2010 602 134 3 16 77 646 (299) (84) 16 (368) (177) 75 (177) (279) (1) 252 251 FY2011 842 127 (286) 13 106 564 (291) (0) 13 (278) 7 (176) (72) (242) 45 251 295 FY2012 794 158 (427) 53 113 359 (743) (4) 53 (694) 1,238 (175) (557) 506 171 295 467 FY2013 811 183 (223) 37 119 614 (861) 3 37 (821) 382 (175) 115 322 115 467 582 FY2014E 942 221 (179) 37 141 806 (650) 37 (613) 7 (175) (100) (268) (75) 582 507 FY2015E 1,119 254 (293) 37 168 875 (650) 37 (613) (175) 1 (175) 87 507 594

August 12, 2013

10

Cadila Healthcare |1QFY2014 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.) 0.5 1.2 6.8 0.4 0.9 10.5 0.7 2.0 4.1 0.7 2.3 4.4 0.6 2.0 4.9 0.5 1.6 5.9 1.9 67 47 72 65 2.1 62 49 80 55 2.0 66 57 49 64 1.8 66 54 42 66 1.7 66 53 43 66 1.7 65 52 42 67 20.2 30.9 35.6 22.9 34.9 37.4 17.3 27.2 27.4 13.2 19.5 23.3 14.0 18.9 22.9 15.2 19.9 22.9 15.7 87.7 1.5 20.1 6.1 0.7 29.5 16.4 87.4 1.6 22.7 5.6 0.4 30.3 14.8 85.8 1.3 16.8 9.4 0.5 20.8 12.0 85.3 1.2 12.8 5.8 0.7 17.7 12.4 85.0 1.3 13.4 5.7 0.6 18.3 12.7 85.0 1.3 14.4 5.7 0.5 19.0 24.9 24.9 31.5 79.7 34.7 34.7 41.0 6.3 106.1 31.7 31.7 39.5 7.5 125.7 32.0 32.0 41.0 7.5 148.5 37.3 37.3 48.3 7.5 177.4 44.7 44.7 57.2 7.5 213.5 28.5 22.5 8.9 0.0 4.3 22.1 5.3 20.4 17.3 6.7 0.9 3.4 17.6 4.3 22.3 17.9 5.6 1.1 3.2 17.7 3.1 22.1 17.3 4.8 1.1 2.6 17.6 2.7 19.0 14.7 4.0 1.1 2.3 14.9 2.5 15.8 12.4 3.3 1.1 1.9 12.4 2.2 FY2010 FY2011 FY2012 FY2013 FY2014E FY2015E

August 12, 2013

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Cadila Healthcare |1QFY2014 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 Pvt. 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 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 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 Pvt. 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 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 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

Cadila 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%)

August 12, 2013

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