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INITIATING COVERAGE HINDUSTAN UNILEVER LIMITED Target Price 500

ANALYST: NAVEEN VYAS Email_id: nvyas@microsec.in
26 DEC 2011 Microsec Research

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Hindustan Unilever – Waking up after a long sleep !

BUY
M arket Data Current M arket Price (IN R) Target Price % U pside 5 2 Week High / Low (IN R) M arket Capitalization (In IN R cr)
Others 18%

Sector – FMCG
4 19 5 00 1 9.3% 4 21 / 2 64 90 ,5 89

We Rate Hindustan Unilever (HUL) a ‘BUY’. It has strong rural penetration, sustained brand power, strong distribution newtork, continuous product innovation and domestic consumption story. Hindustan Unilever is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians.

Shareholding

Investment Highlights
Strong Portfolio of Brands covering the entire consumer pyramid: HUL is well placed to maximize on the opportunity in a growing market like india with the help of its sustained brand power. The company has increased sharp focus on the needs of its consumers and has build a solid distribution network to support it. Premiumisation in urban and rural penetration are two biggest opportunities in india that will propel HUL’s future sales growth. While 60% of the market is still at the bottom-of-the-pyramid, premiumisation is the most prominent trend across categories of foods and personal care. Expansion of Outlets with improved visibility and availablity of its products. HUL increased its direct retail coverage by adding 600000 outlets and improved the visibility of its products through opening up of ‘Perfect Stores’. Increasing Innovation in the product line is the ‘mantra’ for growth in HUL . Almost 35% of its turnover in FY11 has come though innovation. HUL focuses on consumer insight and use of breakthrough technology to deliver better and bigger innovations to the consumers. For Eg. Dove shampoo in superior packaging, Brooke Bond Sehatmand delivering vitamins in tea , Project Shakti & Shaktiman etc.

DII 12%

FII 18%

Promoters 52%

STOCK SCAN BSE Code NSE Code Bloomberg Ticker Reuters Ticker Face Value (INR) Equity Share Capital (Rs. cr.) TTM P/E Beta vs Sensex Average Daily Volmes (6 M) Dividiend Yield PEG Ratio
160 140 120 100 80 60 Dec- Feb- Apr10 11 11 HUL

500696 HINDUNILVR HUVR IN HLL.BO 1.00 216.10 39.7x 0.7x 2,761,938 1.67 1.89

VALUATION
At the CMP of INR419, the stock is currently trading at a P/E of 39.7x. It discounts its FY12E EPS of Rs.11.64 by 36x and its FY13E EPS of Rs 13.9 by 30x. We value the stock at a target P/E multiple of 36x based on its FY13E EPS to arrive at the Target price of INR500. Exhibit 1. HUL LTD. – Historical Financials and Projections
Particulars Net Sales incl. OPI Growth (%) EBITDA EBITDA Margins (%) Net Profit Net Profit Margins (%) Net Profit Growth (%) EPS EX EO P/E P/BV RoE FY09 20,892.0 3,071.0 14.7% 2,511.0 12.0% 11.52 36.4 42.6 137.8% FY10 18,036.0 -14% 2,791.0 15.5% 2,084.0 11.6% -17% 9.55 43.9 34.2 86.7% FY11 20,026.0 11% 2,712.0 13.5% 2,075.0 10.4% 0% 9.61 43.6 33.3 77.2% FY12E 23,262.0 16% 3,257.0 14.0% 2,513.0 10.8% 21% 11.64 36.0 26.0 81.3% FY13E 27,163.0 17% 3,884.0 14.3% 3,001.0 11.0% 19% 13.90 30.1 20.6 76.5%

Jun- Aug11 11

Oct11

SENSEX

Source: Company, Microsec Research (In INR Crore)

-226 DEC 2011 Microsec Research

innovation and category creation. with leadership in Home & Personal Care Products and Foods & Beverages. The company meets everyday needs for nutrition. packaged foods. With over 35 brands spanning 20 distinct categories such as soaps. ice cream. touch the lives of two out of three Indians. Lakme salon. Bru. Pond’s. Lakmé. one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €44 billion in 2011. and water purifiers. Sunsilk. deodorants. 691 crores (FY11).Company Profile HUL is India's largest fast moving consumer goods company. Unilever now holds 52% equity in the company. Unilever set up its first Indian subsidiary. with brands that help people feel good. look good and get more out of life. In 1931. Clinic Plus. the Company is a part of the everyday life of millions of consumers across India.19. HUL offered 10% of its equity to the Indian public. HUL has managed to make itself steady. Its portfolio includes leading household brands such as Lux. HUL's brands. Closeup. Wheel. Hindustan Vanaspati Manufacturing Company. It is now focusing on strong growth. hygiene. Knorr. skin care. tea. Lifebuoy. These three companies merged to form HUL in November 1956. Fair & Lovely. Dove. coffee. BRU cafes and Swirls Parlors are new ways for Hindustan Unilever to connect with its consumers. Brooke Bond. Axe. detergents. The Company has over 16. and personal care. Pepsodent. HUL is a subsidiary of Unilever.000 employees and has an annual turnover of around Rs. Rin. Kissan. cosmetics. Kwality Wall’s and Pure it. being the first among the foreign subsidiaries to do so. Cycle of Growth -326 DEC 2011 Microsec Research . spread across 20 distinct consumer categories. shampoos. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). toothpastes. Surf Excel. After three years of navigating choppy waters. Vaseline.

HUL derives 44% of Sales and around 30% EBIT from Soaps & Detergent Segment. Personal Care Products Personal Products categories comprise of Hair Care. . HUL derives 29% of Sales and around 53% EBIT from Personal Care Segment. Oral Care.Product Details A. Deodorants and Colour cosmetics. Soaps & Detergents The Segment consists of Fabric Wash. -426 DEC 2011 Microsec Research .B. Household Care and Personal Wash. Skin Care.

D. Ice-cream etc. fruit jam.C. HUL derives 12% of Sales and around 13% EBIT from Beverages Segment. Soupy Noodles. Packaged Foods Packaged Foods categories comprise of Tomato Ketch-up. Soups. Beverages Beverages Products categories comprise of Tea and Coffee. -526 DEC 2011 Microsec Research . HUL derives 6% of Sales and around 1% EBIT from packaged foods Segment. fruit juice.

HUL has 11 owned and managed salons. Beauty & Wellness HUL serves its Beauty & Wellness business though the opening of ‘Lakme beauty Salons’. These Salons are focused on metros as well as tier I cities which offer a substantial potential for expert beauty services which are set to accelerate in the coming future. Pureit is a unique in-home drinking water purification system that offers protection to children and families from waterborne diseases. Pureit has already protected more than four million homes across India in just three years of its national launch F.E. -626 DEC 2011 Microsec Research . along with 18 franchisee salons. Water Water business comprises of water purifier in the name of ‘Pureit’ brand.

50% 40% 30% 30% 20% 12% 10% 0% FY10 Soaps & Detergent Processed Foods Others Personal Care Ice Creams FY11 Bev erages Exports 5% 6% 1% 2% 12% 5% 6% 1% 3% 29% 45% Sales Break -up 44% Segmental Break-up in EBIT Contribution EBIT Break -up 60% 50% 40% 30% 20% 10% 0% -10% FY10 Soaps & Detergent Processed Foods Others -3% Personal Care Ice Creams FY11 Bev erages Exports -1% 13% 3% 0% 1% 13% 3% 0% 1% 30% 30% 55% 53% -726 DEC 2011 Microsec Research .Segmental Break-up of Sales .

According to Nielson study. urban consumers are adopting modern retail outlets faster for nascent but fast growing categories like processed foods and personal care for HUL. Clinic. The company has increased sharp focus on the needs of its consumers and has build a solid distribution network to support it. Knorr-Annapurna.2 in toothpaste and ketch-up category. Pepsodent. HUL's brands . Sunsilk. Lakme. spread across 20 distinct consumer categories.Investment Thesis Strong Portfolio of Brands covering the entire consumer pyramid: HUL is well placed to maximize on the opportunity in a growing market like india with the help of its sustained brand power. premiumisation is the most prominent trend across categories of foods and personal care. HUL is No. It has more than 1.5 million outlets under direct coverage. Brooke Bond. Modern Trade continued to be the fastest growing channel in the market and winning in this channel is one of the key priorities for the Company.like Lifebuoy. Its portfolio ranges from mass to premium products. Rin. Indulgent consumers in urban and rural areas. Kissan. While rural consumers are aiding volumes. While 60% of the market is still at the bottom-of-the-pyramid. Surf Excel. Close-up. Fair & Lovely. HUL's brands. Foods and Modern Trade as key capabilities in order to ‘win’ in the future. doubling the coverage in the last two years. Kwality Wall's ' are household names across the country.1 in most of the categories and a strong No. -826 DEC 2011 Microsec Research . HUL has identified Beauty. touch the lives of two out of three Indians. who are buying more premium products or ‘uptrading’— and buying them more often — will propel India’s domestic consumer goods industry by as much as eight times by 2025. Premiumisation in urban and rural penetration are two biggest opportunities in india that will propel HUL’s future sales growth. Pond's. The company derives 10% of its sales from Modern Retail Outlets which helps it to accelerate the development of the categories like food. Wheel. Lux.

Brooke Bond Sehatmand delivering vitamins in tea . HUL increased its direct retail coverage by adding 600000 outlets and improved the visibility of its products through opening up of ‘Perfect Stores’. For Eg. The employees of the company has gone out in the market in a focussed five day programme with an agenda to transformed 14000 kirana stores across india into ‘Perfect stores’. Project Shakti is an innovative win-win distribution model. -926 DEC 2011 Microsec Research . the Pond’s Gold Radiance. HUL focuses on consumer insight and use of breakthrough technology to deliver better and bigger innovations to the consumers. HUL entered New Product categories with the launch of Lakme Skin Lightening Compact. The objective of the programme is to help the customer better navigate the store.Expansion of Outlets with improved visibility and availablity of its products. which helps it to reach consumers in remote villages across the country while enhancing livelihoods of rural women. These Perfect stores'' are standardised ones with set plans for fixtures and products and display. Fair & Lovely anti-marks eraser pen. For example. Almost 35% of its turnover in FY11 has come though innovation. Increasing Innovation in the product line is the ‘mantra’ for growth in HUL . The "Perfect Store" initiative is the company's latest endeavor to strengthen its go-to-market capabilities and has been one of the largest and fastest rollouts of a sales and marketing strategy across the country. Cif surface cleaners. Project Shakti etc. Sure anti-perspirant deodorant. Dove shampoo in superior packaging. HUL's experience shows a neat segmented arranging of similar products helps boost sales 30% of a store since 70% of purchase decisions are made on the spot. Kissan Nutrismart in the malted food drinks space and Kissan Soya in the juice. HUL drives innovation. not only in its products. but across the value chain of its business.

10 26 DEC 2011 Microsec Research .Continued Focus on Innovation New Product Development .

Product differentiation. modern retailing strategies. Hindustan Unilever Limited (HUL). compared to 3. FMCGs are now well positioned and deeply penetrated in the fast growing rural market.FMCG Industry – At a Glance FMCG sector in India has been experiencing a phenomenal pace of growth since last decade owing to increasing consumer incomes and rapidly changing consumer tastes and preferences. The demand revolution has percolated down to Middle India and these towns will behave like the metros of tomorrow. Nielsen estimates that the country's rural FMCG retail landscape will grow from $12 billion in 2011 to $100 billion by 2025. Henkel Spic.5 times in these towns of 1-10 lakh population. Modi Revlon. Asian Paints (India). have registered a firm presence in India for last so many years now. A major portion of the monthly budget of each household is spent on FMCG products At present Indian FMCG sector is worth INR1300 billion and expected to be around a whopping value of INR4000 to Rs. Among other Emami. shampoos. the FMCG sector grew 3. Also as per Nielsen study. Procter & Gamble (P&G). the Indian FMCG market is expected to cross $80 billion by 2026 in towns with population of up to 10 lakh.11 26 DEC 2011 Microsec Research . personal grooming and home improvement. rural penetration of a wide range of products such as soaps. . Since 2002. Large scale and low cost production. tag lines and punchlines in advertising. GlaxoSmithKline. FMCG Companies are among the top contenders that pursue the brand positioning process to establish their products in market. hair oil and biscuits is now almost the same as urban India. 6000 billion by 2020 as per CII. Rural mindset is open to consumption of newer. Nirma Ltd and Godrej Consumer Products Ltd lead the FMCG Companies chart in the country. Marico Industries Ltd. and is experimenting with categories like health and wellness. Globalization has broadened the list of FMCG Companies in India. Dabur India.. drives consistent growth. The study said the 'middle India' consumer is changing and evolving. Britannia and Reckitt Benckiser. For example. According to data provided by market research agency IMRB. toilet soap penetration is as high as 99 per cent in January-July. it’s a creditable 83 per cent. Despite inflationary pressures sale of FMCG products is not adversely affected due to price hikes because demand for these products can never shrink and there is also a scope for FMCG companies to gain through product diversification and introducing new variants of the existing products. more contemporary food categories and as a result. washing powder. with changing lifestyle and increasing consumer demand. Nestlé India and Indian Tobacco Company (ITC) Limited are the oldest FMCG companies in India. For biscuits and hair oil.. portable & attractive package styling.2 times at the all-India level. competent marketing and innovative product promotion strategies are very important for this industry to perform well. Johnson & Johnson. Foreign players like Cadbury. Gillette. Colgate-Palmolive (India) Ltd. and 97 per cent for washing powder. branding and maintenance of intense distribution network have given FMCGs an edge over others in raising hovering revenues. Pepsi Co. Godfrey Phillips.

Pushing consumers to buy premium products by tapping into niche segments within the same category is one part of the strategy.389 37.151 31.126 153.834 549.966 124. Across the globe.90 Purchase volumes (kg/litre) 100 89 79 99 15 39 89 94 235.666 10. and above Source: IMRB Rural market is a large market space with very low organised player penetration.926 120.727 196.000.886 269.001 533.314 30.422 260.016 315.RISING RURAL PENETRATION.12 26 DEC 2011 Microsec Research .780 39.841 937.126 Purchase volumes (kg/litre) 99 84 30 97 0 11 83 83 255.989 Jan-Jul ‘11 (% penetration) Any toilet soap Any shampoo Any noodle/macaroni/vermicelli Any washing powder/liquid Any sauce/ketchup Any bottled soft drink Any hair oil/dressing Biscuits/cookies 100 88 73 99 14 36 89 93 (% penetration) 98 82 26 97 0 8 83 82 Urban household universe includes towns/cities with a population up to four million.716 103.492 230. the indian rural market is probably the single largest “unit” of oppportunity.90 Jan-Jul ‘11 72.800 32. and above Rural household universe includes villages with a population up to 5. The other is to nudge consumers to shift from unbranded to branded products.619 74. .461.921 32.694 231.461.966 326.699 77.185 868.406 39 44.587 11.899 122.377 Jan-Jul ‘10 Jan-Jul ‘11 Rural Jan-Jul ‘10 Jan-Jul ‘11 Jan-Jul ‘10 153. VOLUMES Urban Jan-Jul ‘10 Universe in 000s 72.750 27 55.126 269.

3 13 14 14 15 20 18 16 14 9.8% 119 1447 0 1447 109 1338 297 1040 17% 10. of shares Adjusted EPS EX EO Source : Accord (INR Crore) Sep-11 11026 164 11190 9609 1581 14.10 5.00 216.13 26 DEC 2011 Microsec Research .77 18% 20% Last 8 Quarters – Chart showing Growth in Sales and Growth in Volume Last 8 Quarters Sales & Volume Growth 16 14 12 10 8 6 4 2 0 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 5 4.61 Sep-10 Var% 16% 9475 166 9641 16% 8313 1328 19% 13.8% 59 1099 218.6 8 10.3 11 14 12 8.10 1.1% 128 1709 1 1709 113 1595 382 1213 10.21 1.Financial Highlight – Half year FY12 performance DESCRIPTION Net Sales Other operating income Total Income Total Expenditure PBIDT (Excl OI) EBITDA (%) Other Income Operating Profit Interest PBDT Depreciation PBT Tax Profit After Tax PAT (%) Exceptional Items PAT after EO Equity Capital Face Value (In Rs) No.8% 103 1316 216.8 12 10 8 6 4 2 0 Sep-11 18 % growth in Sales % Growth in Volume .9 7 10.00 218.21 4.

2000 to 2010) 7000 6000 5000 4000 3000 2000 1000 0 CY00 CY01 CY02 CY03 CY04 CY05 CY06 CY07 NIFTY Price HUL Price FY09 (15M) FY10 1264 1059 1094 1880 2081 224 206 182 144 2837 205 197 3967 150 3021 100 50 0 217 6139 214 5249 239 238 250 200 300 Underperformance picture has changed from FY10 Unde r pe r f o r m a nce o f HUL cha nge d f r o m FY 10 (C o m pa r s io n o f HUL with Nif ty f r o m FY 10) 60% 40% 20% 0% -20% -40% FY11 % Return of HUL -18% 9M FY12 % return in Nifty 20% 11% 47% .14 26 DEC 2011 Microsec Research .Chart showing Return of Stock with Growth in EPS for last 7 years Change in Market Price w ith Change in EPS 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% -28% CY 05 CY 06 CY 07 FY 09 (15M ) FY 10 FY 11 -1% -16% -30% CY 04 38% 15% 10% 16% 43% 20% 12% 0% 3% 9% %R eturn of Stock % change in EPS Source: Accord Decade Price Underperformer – (i.e from.

New packaging norms related to standard pack sizes: Recently.0% 16. personal care. If this new packaging rule is implemented.6 4.9 26.3 29.8% 5018 286 819 134 403 569 300 229 PAT (%) 22.5 7. HUL is a part of the everyday life of millions of consumers across India with its leading household brands such as Lux.Peer Group Comparison H2 FY12 H2 FY12 H2 FY12 CMP as Sales EBITDA PAT on 26 MCAP/ EPS P/E Growth Growth Growth MCAP Dec 11 SALES FY12E FY12E 16 19 29 21 19 17 31 15 20 19 19 21 20 16 -8 18 11 -4 20 90587 419 205 143 4139 440 1020 101 2515 353 4.0 33.1 6.7x. powerful brands.1% 20.9 by 30x. hygiene. Wheel. food habits etc.4 16.8 86.9% 13.0 3.3 27. Figures in INR crores FY12E P/E calculated based on Bloomberg consensus Estimated EPS VALUATION At the CMP of INR419.2% 9.15 26 DEC 2011 Microsec Research .6 30.6 7.3% 18. food and public distribution issued a notification which categorised 19 consumer goods which have to be to be sold only in standardised pack sizes from July 1 next year.1% 2.4% Source: Company Research. the ministry of consumer affairs. .8 5. leadership position. constant product innovation and its sustainable business model.2% 13. Sunsilk. it will adversely affect their profit margins. Kwality Wall’s and Pure it.8 23 161423 12 8798 18 39906 23 5256 -10 13864 13 17577 15 10577 4 5335 Company Name HUL ITC Marico Nestle India Britannia Colgate Dabur Glaxosmithkline Consumer Emami Year 201103 201103 201103 201012 201103 201103 201103 201012 201103 Net Sales 20026 22586 3128 6255 4605 2221 4077 2306 1278 EBITDA EBITDA (%) PAT 2712 7720 410 1231 235 451 735 377 356 13.1 2.9% 18.5 38. Kissan. Consumers are very price sensitive in this industry.3 4.5% 34.4 1. Lakmé.2% 13.1% 13. Pond’s.11.7% 5. strong rural penetration.64 by 35.2 106.8 6. Vaseline.0 26. Fair & Lovely. Clinic Plus. skin care. will help it to capture the changing dynamics of indian consumers in the fields of beauty.3% 27.9 27.1% 19. Pepsodent.2 19.9% ROE (%) 77 33 37 114 44 113 54 32 19 2075 10. Key Concern Highly competitive Industry: FMCG industry is highly competitive industry with more players coming in the fields of soaps. diversified product line. detergents and skin care.1 17. Bru. Rin. Knorr.0% 17.9x and its FY13E EPS of Rs 13.2 11. oral care.2 4. the stock is currently trading at a P/E of 39. Brooke Bond. large distribution channel. Closeup. Surf Excel.8 36. We value the stock at a target P/E multiple of 36x based on its FY13E EPS to arrive at the Target price of INR500 We believe that HUL’s new strategies. These Brands are the life blood of its business which it had build over the years in the minds & hearts of Indian consumers and now the brand loyalty is unlikely to fade in the near term. Dove. It discounts its FY12E EPS of Rs. Axe. Lifebuoy. Bloomberg.

6% 77.4% 2.4% 0% 221 0 2296 9.3% 0.8 9.16 26 DEC 2011 Microsec Research .0 0.61 Ratio Analysis DESCRIPTION Profitability Ratios EBIDTA Ratio Net Profit ratio Sales/Total Asset Return Ratios ROCE ROE Liquidity Ratios Debt / Equity Current Ratio Investor Ratios EPS BV per Share FY09 (15M) 14.6% 1.5% 11.5 159.5 9.7% 86.52 FY10 17764 -13% 271 18036 15245 2791 15.7% 190 3261 26 3235 200 3035 518 2517 -5 2511 12.6 12.6 12.0% 44% -8 1 2505 11.6% -17% 54 19 2157 9.2 1.0 0.3% 279 4163 1 4162 245 3917 901 3016 -15 3001 11.3% 11.4% 137.8% 0.0 101.9 11.0 1.0% 1.8 9.8% 1.2% 81.2 FY11 13.5 FY12E 14.5% 10.1 FY13E 14.0% 10.9 20.0 11.55 FY11 Figures in INR crores FY12E 22926 16% 336 23262 20005 3257 14.8% 21% 215 0 2728 11.Income Statement DESCRIPTION Net Sales % growth in Sales Other operating income Total Income Total Expenditure PBIDT (Excl OI) EBITDA(%) Other Income Operating Profit Interest PBDT Depreciation PBT Tax Profit After Tax Minority Interest Consolidated Net Profit PAT (%) % growth in PAT Exceptional Items Extraordinary Items PAT including EO Adj EPS EX EO FY09 (15M) 20501 48% 390 20892 17820 3071 14.0 0.9 109.0 13.9% 76.8 FY10 15.7% 0.5% 0.90 19691 11% 335 20026 17314 2712 13.0% 262 3519 1 3518 237 3281 755 2526 -13 2513 10.2 .5% 254 2966 1 2965 229 2736 650 2086 -11 2075 10.0% 19% 215 0 3216 13.0% 2.9 106.9 99.6 16.2% 0.5% 129 2920 7 2912 192 2720 628 2092 -8 2084 11.7% 12.64 FY13E 26823 17% 340 27163 23279 3884 14.

17 26 DEC 2011 Microsec Research .Balance Sheet DESCRIPTION SOURCES OF FUNDS: Share Capital Share Warrants & Outstandings Total Reserves Shareholder's Funds Minority Interest Secured Loans Unsecured Loans Total Debts Total Liabilities APPLICATION OF FUNDS : Gross Block Less: Accumulated Depreciation Net Block Lease Adjustment A/c Capital Work in Progress Investments Current Assets. Loans & Advances Inventories Sundry Debtors Cash and Bank Other Current Assets Loans and Advances Total Current Assets Less : Current Liabilities and Provisions Current Liabilities Provisions Total Current Liabilities Net Current Assets Deferred Tax Assets / Liabilities Total Assets FY09 (15M) 218 4 1915 2137 8 156 278 434 2579 FY10 218 3 2448 2669 10 10 0 11 2690 Figures in INR crores FY11 216 3 2490 2709 15 0 3 3 2727 FY12E 216 3 3251 3469 28 0 3 3 3500 FY13E 216 3 4154 4373 43 0 3 3 4418 2959 1301 1658 478 288 2581 561 1864 20 745 5770 4332 1535 5867 -97 253 2579 3667 1453 2214 280 1224 2226 685 2012 19 596 5539 5352 1464 6816 -1277 248 2690 3854 1631 2223 300 1188 2874 955 1787 38 663 6317 6173 1336 7509 -1192 207 2727 4150 1868 2282 480 1173 3241 1376 2390 50 950 8007 7099 1550 8649 -642 207 3500 4400 2113 2287 680 950 4024 1609 3175 50 1150 10008 8164 1550 9714 294 207 4418 Cash Flow DESCRIPTION CF from operating Activities CF from Investing Activities CF from Financing Activities Net Cash Flow from Business Add : Opening Cash Closing Cash FY09 (15M) 2054 885 -1338 1602 262 1864 FY10 3480 -1144 -2188 148 1864 2012 FY11 Figures in INR crore FY12E 3032 -461 -1969 603 1787 2390 FY13E 3326 -227 -2314 785 2390 3175 1910 158 -2293 -225 2012 1787 .

in vpagaria@microsec.in Technical & Derivative Research Recommendation Strong Buy Buy Hold Underperform Sell Expected absolute returns (%) over 12 months >20% between 10% and 20% between 0% and 10% between 0% and -10% < -10% .in Research: Financial Planning Division Institutional Equities Sr.18 26 DEC 2011 Microsec Research .in sjain@microsec.in rksaha@microsec.in Fundamental Research Name Nitin Prakash Daga Naveen Vyas Gargi Deb Sutapa Roy Sanjeev Jain Anik Das Neha Majithia Prabir Adhikary Soumyadip Raha Saroj Singh Vinit Pagaria Ranajit Saha` Institutional Desk Dhruva Mittal PMS Division Siddharth Sedani Shrivardhan Kedia Research-Support Subhabrata Boral Research Support Asst. Manager Technology sboral@microsec.in nvyas@microsec. Manager Email ID npdaga@microsec. Head of Research: ajaiswal@microsec.in sraha@microsec.in nmajithia@microsec. Telecom & Entertainment Midcaps.in Ajay Jaiswal: President. Investment Strategies.in gdeb@microsec.in Sectors IT.: 91 33 30512100 Email: microsec_research@microsec.in skedia@microsec.in ssingh2@microsec.in s-roy@microsec.in padhikary@microsec.in adas4@microsec.Market Strategies Agriculture & Pharma Economy BFSI Mid Cap Mid Cap Metal Mid Cap Mid Cap Derivatives & Technical Technical Research Designation AVP-Research AVP-Research Research Analyst Research Analyst Research Analyst Research Analyst Research Analyst Research Analyst Executive Research Executive Research VP Sr.in PMS Research FPD Products AVP Manager Research ssedani@microsec.Microsec Research: Phone No. Manager dmittal@microsec.

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