2QFY2013 Result Update | Steel

November 16, 2012

Monnet Ispat
Performance highlights
Quarterly highlights (Standalone)
Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit
Source: Company, Angel Research

BUY
CMP Target Price
Investment Period
2QFY12 459 119 26.1 77 yoy (%) 19.3 16.7 (56)bp (7.3) 1QFY13 521 136 26.1 69 qoq (%) 5.1 2.5 (64)bp 4.1

`289 `344
12 Months

2QFY13 547 139 25.5 71

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 Steel 1,860 3,080 0.5 561/265 19,236 10 18,309 5,574 MNET.BO MISP@IN

For 2QFY2013, Monnet Ispat (MIL) reported a robust operating performance; however, its bottom-line declined by 7.3% yoy mainly due to higher interest costs. We maintain our Buy rating on the stock. Robust top-line performance: MILs net sales grew by 19.3% yoy to `547cr mainly due to increase in sales volumes of sponge iron (+15.4% yoy). Also, basic steel and power realizations grew by 30.7% and 49.0% yoy, respectively. EBITDA increases by 16.7% yoy: Although net sales grew by 19.3% yoy, MILs EBITDA increased by only 16.7% yoy to `139cr mainly due to higher iron ore costs which grew by 8.2% yoy to `6,713/tonne. Interest expenses and depreciation expenses grew by 156.6% and 18.7% yoy. Consequently, net profit decreased by 7.3% yoy to `71cr. Steel projects delayed further: MIL has (again) announced delay in commissioning of its steel projects during 2QFY2013. Post its 4QFY2012 results, it had announced a six month delay in its 1,050MW power plant at Angul (expected to be operational in 2HFY2014). Outlook and valuation: MIL is on the verge of a massive expansion in its steel business. The long-term stock performance will be determined by the timely expansion of the 1.5mtpa steel plant and unlocking of value in Monnet Power, which is implementing the 1,050MW power project. Although there have been delays in the commencement of these projects, most of these projects would be backed by captive resources, thus ensuring robust profitability. Hence, we recommend Buy on the stock with a target price of `344, valuing the steel business at 4.0x FY2014E EV/EBITDA and investment in Monnet Power at 1.5x P/BV. Key financials (Standalone)
Y/E March (` cr) Net sales % chg Adj. net profit % chg EPS (`) EBITDA margin (%) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 49.6 1.2 38.5 10.7

Abs. (%) Sensex MIL

3m 3.7

1yr 9.1

3yr 7.5 9.1

(5.3) (26.5)

FY2011 1,573 6.2 281 (2.2) 43.7 27.8 6.6 0.9 14.9 8.9 2.1 7.4

FY2012 1,897 20.6 289 2.7 44.9 25.0 6.4 0.8 13.0 7.2 2.2 8.9

FY2013E 2,501 31.8 280 (2.9) 41.8 22.2 6.9 0.7 11.3 7.0 1.8 8.2

FY2014E 3,264 30.5 370 32.0 55.2 24.6 5.2 0.6 13.4 10.4 1.3 5.3

Bhavesh Chauhan
Tel: 022- 39357800 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

Monnet Ispat | 2QFY2013 Result Update

Exhibit 1: 2QFY2013 performance (Standalone)

(` cr) Net sales Raw material % 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 Profit after tax
Source: Company, Angel Research

2QFY13 547 323 59.0 27 4.9 61 11.2 411 75.1 136 24.9 3 139 25.5 30 22 6 0 94 17.1 22 23.5 71

2QFY12 459 274 59.8 21 4.5 30 6.6 339 73.9 119 26.1 0 119 26.1 12 19 7 0 96 20.9 19 19.7 77

% yoy 19.3 17.8 27.7 101.9 21.1 14.2 16.7 156.6 18.7 (8.3) (2.4) 16.5 (7.3)

1QFY13 521 323 62.0 25 4.8 42 8.2 390 75.0 130 25.0 6 136 26.1 30 22 6 0 89 17.1 21 23.1 69

% qoq 5.1 0.0 5.4 43.9 5.1 4.9 2.5 (2.0) 0.7 10.9 5.0 7.0 4.1

1HFY13 1,068 646 60.5 52 4.9 104 9.7 801 75.0 267 25.0 9 275 25.8 60 44 12 0 183 17.1 43 23.3 140

1HFY12 886 522 58.9 42 4.8 59 6.6 650 73.4 236 26.6 0 236 26.6 25 37 18 0 191 21.6 41 21.6 150

% yoy 20.5 23.7 22.4 76.8 23.2 13.1 16.8 143.0 18.4 (35.0) (4.7) 2.8 (6.9)

Robust 2QFY2013 top-line performance

MILs net sales grew by 19.3% yoy to `547cr mainly due to increase in realizations across most product categories coupled with higher sales volumes. Growth was mainly driven by the increase in sales volumes of sponge iron by 15.4% yoy to 184,597 tonne. The companys basic steel and power realizations grew by 30.7% and 49.0% yoy to `33,861/tonne and `4.4/unit, respectively.

Exhibit 2: Quarterly production volume

(tonnes) Sponge iron Steel (basic) Steel (structural) Ferro alloy Power (mn units) 2QFY12 186,557 19,855 19,010 1,966 238 3QFY12 194,171 21,058 18,465 2,267 185 4QFY12 195,609 29,284 25,012 2,587 225 1QFY13 190,266 26,705 23,352 2,489 215 2QFY13 yoy (%) qoq( %) 179,126 24,950 17,802 2,425 212 (4.0) 25.7 (6.4) 23.3 (11.1) (5.9) (6.6) (23.8) (2.6) (1.8)

Source: Company, Angel Research

November 16, 2012

Monnet Ispat | 2QFY2013 Result Update

Exhibit 3: Quarterly sales volume

(tonnes) Sponge iron Steel (basic) Steel (structural) Ferro alloy Power (mn units) 2QFY12 664 17,255 2,049 176 3QFY12 2,680 19,862 2,034 172 4QFY12 2,476 21,065 2,147 180 1QFY13 3,317 22,059 2,220 173 2QFY13 1,689 19,404 1,710 166 yoy (%) qoq( %) 15.4 154.4 12.5 (16.5) (5.7) 13.4 (49.1) (12.0) (23.0) (4.3) 159,906 160,521 157,998 162,726 184,597

Source: Company, Angel Research

Exhibit 4: Quarterly average realization

(`/tonne) Sponge iron Steel (basic) Steel (structural) Ferro alloy Power (`/unit) 2QFY12 21,002 25,904 32,176 63,397 2.9 3QFY12 21,004 30,741 33,197 39,503 3.5 4QFY12 24,159 30,845 35,174 49,539 3.6 1QFY13 22,648 32,243 34,955 57,219 2.9 2QFY13 yoy (%) qoq (%) 21,301 33,861 33,289 53,570 4.4 1.4 30.7 3.5 (15.5) 49.0 (5.9) 5.0 (4.8) (6.4) 48.8

Source: Company, Angel Research

EBITDA grew by 16.7% yoy

Although net sales grew by 19.3% yoy, MILs EBITDA increased by only 16.7% yoy to `139cr, while the EBITDA margin contracted by 56bp yoy to 25.5% mainly due to higher iron ore costs which grew by 8.2% yoy to `6,713/tonne. Interest expenses and depreciation expenses grew by 156.6% and 18.7% yoy to `30cr and `22cr, respectively, on account of capitalization of various projects. Consequently, the net profit decreased by 7.3% yoy to `71cr.

Exhibit 5: EBITDA margin trend

145 140 135 130
(` cr)

Exhibit 6: Net profit trend

30 29 28

80 70 60

77

73

77

83 73 69 71

20 18 16 14 12 10 8 6 4 2 0

28.9

(` cr)

(%)

120 115 110 105 100

26.1

26.0 25.8 25.5

26.1

26 25 24 23

40 30 20 10 0 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 Net Profit (LHS) Net margin (RHS)

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 EBITDA (LHS) EBITDA margin (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Steel projects delayed

MIL has announced delays in commissioning of its steel projects over the past two quarters (See Exhibit 7). After 4QFY2012 results, it had announced six months delays in its 1,050MW power plant at Angul (expected to be operational in 2HFY2014).

November 16, 2012

(%)

125

27.2

27

50

Monnet Ispat | 2QFY2013 Result Update

Exhibit 7: Some steel-related projects have been slightly delayed

Capacity (ktpa) 3QFY12result 4QFY12result 1QFY13 result 2QFY13 result

Sinter plant BF Oxygen plant SMS - 1 SMS - 2 Rebar & Round Plate mill Pellet Coke oven plant
Source: Company, Angel Research

0.90mtpa 0.61mtpa 0.75mtpa 0.75mtpa 0.65mtpa 0.85mtpa 2.0mtpa 0.6mtpa

Jul-12 Jul-12 Jun-12 Jul-12 Sep-12 Jun-12 Aug-12 Mar-13 Mar-13

Jul-12 Jul-12 Jun-12 Jul-12 Sep-12 Jun-12 Oct-12 Apr-13 Apr-13

Nov-12 Nov-12 Nov-12 Feb-13 Feb-13 Oct-12 Mar-13 Aug-13 Aug-13

Dec-12 Dec-12 Dec-12 Feb-13 Feb-13 Nov-12 Mar-13 Aug-13 Aug-13

Investment rationale
Steel expansion of 1.5mn tonne: MIL is setting up a 1.5mn tonne steel plant through the BF-EAF route. The total capex for the project is pegged at `3,600cr. Various plants including sinter plant, oxygen furnace, steel melting shop and plate mill are expected to begin progressive commissioning in mid-FY2014. However, full benefits of these facilities would be witnessed from FY2015. Significant value unlocking lies ahead in Monnet Power: MIL is setting up a 1,050MW (2x525) power plant through Monnet Power. The plant is being set up at a cost of `5,000cr, with equity contribution of `1,200cr and the balance being funded through debt. MIL has diluted a 12.5% stake to Blackstone for a consideration of `275cr, thus valuing the total equity stake at `2,200cr. We expect the plant to be operational in 2HFY2014. With captive coal blocks backing this project, we expect robust profitability from the power business. MIL also aims to raise its capacity further by 660MW. However, the company is yet to achieve financial closure for the same. Indonesian coal mine could provide further upsides: MIL had acquired two coal assets in Indonesia during CY2011, which has potential reserves of 65mn tonne. MIL is currently in the process of developing this mine.

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Monnet Ispat | 2QFY2013 Result Update

Outlook and valuation

MIL is on the verge of a massive expansion in its steel business. The long-term stock performance will be determined by the timely expansion of the 1.5mtpa steel plant and unlocking of value in Monnet Power, which is implementing the 1,050MW power project. Although there have been delays in the commencement of these projects, most of these projects would be backed by captive mines, thus ensuring robust profitability. Hence, we recommend Buy on the stock with a target price of `344, valuing the steel business at 4.0x FY2014E EV/EBITDA and investment in Monnet Power at 1.5x P/BV.

Exhibit 8: SOTP valuation

Steel business Stake in Monnet Power Target price (`)
Source: Company, Angel Research

4.0x FY2014E EV/EBITDA 1.5xP/BV

128 216 344

Exhibit 9: EPS Angel forecast vs consensus

Year FY2013E FY2014E
Source: Bloomberg, Angel Research

Angel
41.8 55.2

Bloomberg consensus 52.3 56.7

Variation (%)
(20.0) (2.6)

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Monnet Ispat | 2QFY2013 Result Update

Exhibit 10: EV/EBITDA band

12,000 10,000 8,000

(`cr)

6,000 4,000 2,000 0

Oct-08

Oct-09

Oct-10

Oct-11

2x

5x

8x

11x

14x

Source: Bloomberg, Angel Research

Exhibit 11: P/E band

1,600 1,400 1,200 1,000 800
(`)

600 400 200 0

Oct-08 Oct-09 Oct-10 Oct-11 Oct-12
Oct-12

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Apr-10

Apr-11

Apr-12

Apr-09

Apr-08

Jul-08

Jul-09

5x

10x

Jul-10

15x

20x

Source: Bloomberg, Angel Research

Exhibit 12: P/BV band

1,000 900 800 700 600 500
(`)

400 300 200 100 0

Oct-08 Oct-09 Oct-10 Oct-11 Jan-09 Jan-10 Jan-11 Apr-08 Apr-09 Apr-10 Apr-11 Jan-12 Apr-12 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12

0.5x

1.0x

1.5x

Source: Bloomberg, Angel Research

November 16, 2012

Jul-11

2.0x

Jul-12

Oct-12

Jan-09

Jan-10

Jan-11

Jan-12

Apr-08

Apr-09

Apr-10

Apr-11

Apr-12

Jul-08

Jul-09

Jul-10

Jul-11

Jul-12

Monnet Ispat | 2QFY2013 Result Update

Exhibit 13: Recommendation summary

Companies CMP (`) Target Price (`) Reco. Mcap (` cr) Upside (%) P/E (x) FY13E FY14E P/BV (x) FY13E FY14E EV/EBITDA (x) FY13E FY14E RoE (%) FY13E FY14E RoCE (%) FY13E FY14E

SAIL Monnet Tata Steel JSW Steel BSL

79 289 370 730 490

- Neutral 344 463 Buy Buy

32,734 1,860 36,493 16,464 10,467

19 25 -

11.7 6.9 17.1 9.4 10.9

10.8 5.2 8.4 8.2 9.7

0.8 0.7 0.8 0.9 1.3

0.7 0.6 0.8 0.8 1.3

7.2 8.2 6.4 4.7 10.1

7.3 5.3 5.4 4.7 8.1

6.9 11.3 4.9 10.2 12.2

7.1 13.4 9.3 10.7 12.2

6.1 7.0 7.2 10.7 7.5

6.6 10.4 10.0 9.3 8.5

- Neutral - Neutral

Source: Company, Angel Research

Company description
Incorporated in 1990, MIL principally manufactures sponge iron (capacity - 1.0mn tonne), ingots (capacity - 0.3mn tonne), structural steel (capacity - 0.2mn tonne) and ferro alloys (capacity - 58ktpa). MIL has captive coal mine (reserves - 90mn tonne; production - 1.2mn tonne) for production of sponge iron. The companys plants are located in Raipur and Raigarh in Chhattisgarh. It has several allocated coal blocks such as Gare Palma IV/5, Utkal B2, Urtan North, Rajgamar and Mandakini which are under various stages of clearances.

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Monnet Ispat | 2QFY2013 Result Update

Profit & loss statement (Standalone)

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 EBIT % chg (% of Net sales) Interest charges Other income (% of PBT) Share in profit of asso. Recurring PBT % chg Extra. Inc/(Expense) PBT (reported) Tax (% of PBT) PAT (reported) Add: Earnings of asso. Less: Minority interest Extra. Expense/(Inc.) PAT after MI (reported) ADJ. PAT % chg (% of Net sales) Basic EPS (`) Fully Diluted EPS (`) % chg FY2009 1,711 162 1,549 1,549 33.6 1,174 911 136 61 66 375 48.7 24.2 65 309 49.1 20.0 71 48 16.6 286 29.7 16 271 55 20.3 216 216 232 39.4 15.0 47.4 45.4 54.6 FY2010 1,567 86 1,481 1,481 (4.4) 1,017 735 146 73 62 464 23.8 31.3 72 392 26.8 26.5 74 32 9.1 350 22.1 18 331 60 18.2 269 269 288 24.1 19.4 56.1 44.7 (1.7) FY2011 1,695 122 1,573 1,573 6.2 1,136 889 0 75 172 437 (5.8) 27.8 74 363 (7.4) 23.1 31 29 8.1 362 3.4 362 80 22.2 281 281 281 (2.2) 17.9 47.3 43.7 (2.2) FY2012 2,060 163 1,897 1,897 20.6 1,423 1,142 0 95 186 475 8.6 25.0 74 401 10.3 21.1 87 63 16.7 377 4.3 377 88 23.4 289 289 289 2.7 15.2 44.9 44.9 2.7 FY2013E 2,698 197 2,501 16 2,517 32.6 1,961 1,361 225 125 250 556 17.1 22.2 94 462 15.4 18.5 128 32 8.6 366 (2.9) 366 86 23.4 280 280 280 (2.9) 11.2 43.6 41.8 (6.8) FY2014E 3,521 257 3,264 19 3,283 30.4 2,479 1,686 294 173 326 803 44.5 24.6 103 701 51.6 21.5 246 28 5.9 1.0 483 32.0 483 113 23.4 370 370 370 32.0 11.3 57.5 55.2 32.0

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Monnet Ispat | 2QFY2013 Result Update

Balance sheet (Standalone)

Y/E March (` cr) SOURCES OF FUNDS Equity share capital Reserves & surplus Shareholders funds Share warrants Minority interest Total loans Deferred tax liability Long term prov. Total liabilities APPLICATION OF FUNDS Gross block Less: Acc. depreciation Net Block Capital work-in-progress Goodwill Investments Loans and advances Other non-current assets Current assets Cash Loans & advances Other Current liabilities Net current assets Mis. exp. not written off Total assets 1,366 240 1,127 310 216 1,222 246 683 294 232 991 83 2,725 1,439 311 1,128 721 545 1,143 205 590 348 268 875 18 3,289 1,477 383 1,094 1,065 550 471 1 1,996 687 757 550 337 1,659 0 4,841 1,836 457 1,379 2,022 591 443 80 2,394 873 772 741 558 1,836 0 6,351 2,836 551 2,285 1,722 591 443 80 2,318 754 772 785 646 1,673 0 6,794 3,186 654 2,532 1,442 591 443 80 2,265 553 772 933 727 1,538 0 6,626 48 1,238 1,286 0 1,325 114 2,725 54 1,592 1,646 27 0 1,495 120 3,289 64 2,026 2,090 0 2,606 141 3 4,841 64 2,296 2,360 3,834 150 6 6,351 64 2,539 2,603 4,034 150 6 6,794 64 2,871 2,935 3,534 150 6 6,626 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E

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Monnet Ispat | 2QFY2013 Result Update

Cash flow statement (Standalone)

Y/E March (` cr) Profit before tax Depreciation Change in working capital Less: Other income Direct taxes paid Cash flow from operations (Inc.)/ Dec. in fixed assets (Inc.)/ Dec. in investments (Inc.)/ Dec. in loans and adv. Other income Cash flow from investing Issue of equity Inc./(Dec.) in loans Dividend paid Others Cash flow from financing Inc./(Dec.) in cash Opening cash bal. Closing cash bal. FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 271 65 (280) 45 31 70 (155) (44) (77) 6 (270) 40 133 28 69 75 (125) 371 246 331 72 78 61 64 478 (73) (412) (330) 15 (799) 151 216 28 58 281 (40) 246 205 362 74 (348) (27) 86 (25) (39) (792) (5) 22 (814) 176 1,177 31 1,322 483 205 688 377 74 (67) 29 75 338 (358) (956) (41) 56 (1,300) 1,228 86 1,142 181 663 844 366 94 44 86 418 (1,000) 300 (700) 200 38 162 (120) 806 687 483 103 (66) 113 407 (350) 280 (70) (500) 38 (538) (201) 754 553

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Monnet Ispat | 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 (days) Receivables (days) Payables (days) WC cycle (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest coverage 0.7 2.3 4.4 0.4 1.6 5.3 0.7 3.1 11.7 1.0 5.0 4.6 1.0 4.8 3.6 0.8 3.0 2.8 1.2 80 26 50 49 1.1 112 32 60 49 1.1 141 44 50 76 1.1 170 34 20 107 1.1 150 33 40 96 1.1 140 32 50 75 12.4 16.2 18.2 13.0 17.3 18.2 8.9 13.3 14.9 7.2 12.2 13.0 7.0 11.9 11.3 10.4 15.7 13.4 20.0 79.7 0.7 11.2 4.6 0.7 15.7 26.5 81.8 0.5 11.5 4.3 0.4 14.8 23.1 77.8 0.4 7.8 1.2 0.7 12.2 21.1 76.6 0.4 6.4 2.1 1.0 10.7 18.5 76.6 0.4 6.2 2.5 1.0 10.0 21.5 76.6 0.5 8.9 5.0 0.8 12.1 47.4 45.4 61.9 5.0 268.2 56.1 44.7 65.9 5.0 307.1 47.3 43.7 55.2 5.0 324.8 44.9 44.9 56.4 5.0 366.8 43.6 41.8 58.1 5.0 404.5 57.5 55.2 73.5 5.0 456.2 6.4 4.7 1.1 1.7 1.5 6.0 0.8 6.5 4.4 0.9 1.7 1.6 5.0 0.7 6.6 5.2 0.9 1.7 2.1 7.4 0.7 6.4 5.1 0.8 1.7 2.2 8.9 0.7 6.9 5.0 0.7 1.7 1.8 8.2 0.7 5.2 3.9 0.6 1.7 1.3 5.3 0.6 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E

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Monnet Ispat | 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

Monnet Ispat 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 16, 2012

12