Nomura

|

Coal India

November 11, 2012 November 8, 12,

Coal India
COAL

COAL.NS COAL IN .

EQUITY RESEARCH

2QFY13: Low non-FSA realization caps earnings 

November 12, 2012 Rating Remains Target price Remains  Closing price November 9, 2012

Buy
INR 398 INR 347

Quick Note
2QFY13 earnings a tad below forecast as realization dips QoQ At INR30.9bn, Coal India’s (CIL’s) 2QFY13 normalized net profit came in marginally below our forecast (5.5% below consensus) of INR31.3bn; reported PAT INR30.8bn (up 19% YoY) was ~2% below our forecast. At INR28.6bn, 2QFY13 EBITDA missed our forecast by 2.4% (although EBITDA margin was in line) on the back of muted revenues – blended realization dropped 2% QoQ vs. our forecast of a 0.5% QoQ uptick. Cash on hand as of September 2013 stood at ~INR647bn (USD12bn).
Fig. 1: COAL – 2QFY13 Consolidated Earnings – Actual vs. Estimates
Robust incentives partially mitigate margin compression on wage revision impact, treasury gains surprise

Research analysts India Power & Utilities Anirudh Gangahar - NFASL anirudh.gangahar@nomura.com +91 22 4037 4516 Kashish Tandon, CFA - NSFSPL kashish.tandon@nomura.com +91 22 403 74008

COAL - 2QFY13 Results (INR m n) Sales EBITDA EBITDA (Pre-OB) Net Profit Reported PAT Actual 145,725 28,617 35,358 30,869 30,781

Nom ura Estim ate 149,038 29,308 36,058 31,306 31,306

Actual vs. Est. -2.2% -2.4% -1.9% -1.4% -1.7%

Cons. Actual vs. Estim ate 147,327 32,214 NA 32,676 32,332 -5.5% -4.8% Cons. -1.1% -11.2%

Note: Consensus = Bloomberg mean estimates, OB = Overburden Removal Adjustment Source: Company reports, Bloomberg, Nomura estimates

E-auction/washed coal realization down 11%/10% QoQ… For 2QFY13, CIL posted a blended realization of INR1,432/ton (vs. our forecast of INR1,466/ton); the implied 2% QoQ drop led to revenues (at INR145.7bn) also coming in ~2% below our forecast. Drilling down the revenue build-up and offtake mix (Figure 4), we note:  CIL liquidated 12.7mt inventory in 2QFY13 (13.4mt in 2QFY12); lower inventory reduction despite a 12% YoY rise in wagon loading (163 rakes/day in 2QFY13 vs. 146 rakes/day in 2QFY12) is surprising.  Although e-auction sales volume (11.7mt in 2QFY13) as a proportion of raw coal sales expectedly posted a QoQ drop to 11.5% vs. 12% in 1QFY13, e-auction sales realization exhibited a surprisingly steep 11% QoQ decline to INR2,282/ton (vs. our forecast at INR2,706/ton).  At 3.2mt, beneficiated (washed) coal sales were virtually flat QoQ, but higher QoQ as a proportion of offtake (3.2% vs. 2.9% in 1QFY13); however, realizations dropped 10% QoQ to INR2,086/ton largely on the back of non-coking washed coal realization dropping 8.5% QoQ.  Realization from notified (FSA) coal sales stood at INR1,287/ton, up 1.6% QoQ (vs. our forecast of INR1,292/ton); the rise was on expected lines following the first full quarter of impact of price hike for a few grades of coal from WCL. In volume terms, sales under FSA were flat QoQ at 84.5%  In terms of sector-wise sales split, power sector accounted for 74% of the offtake (vs. 71.4% of offtake in 1QFY13 and 71% of offtake in 2QFY12).

See Appendix A-1 for analyst certification, important disclosures and the status of non-US analysts.
1

1% -2.1% 19.0% -2.781 QoQ (%) -13.460 491 426 165.5bn of this amount may pertain to FY12 (we hope to seek clarity on the same from CIL over the next few days).138) (12.056 44.5% 32.745 (102) 20.103) 33.006 (61.1 101.9% 8.341) (18.363) 24.942 36.585) (11.2% -12.2% -18. PAT looks conservative Pending a few clarifications sought from the management.963) (12.4bn employee expense recorded in 2QFY13 includes ~INR2.417) 30.6% -27. Nomura estimates 2QFY12 Sept-11 80.3% 16.325 52 40.403 311 265 131.085 (128) 17.790 (126) 20.722 (13.3% 1.6 110.3% 30.8% 18.9% 0.9% -29. normalized realization (i.6% 1.6% (3.432 348 281 145.8% 149.493 (56.1% 4.6% -1.306 31.7% 6. our implied 2HFY13F reported EBITDA potentially appears a tad high.084 34.086) 37.9% -0.2% 40.190 (90.064) (4.25bn on account of festival bonus Our interaction with the management suggests that the INR65. 2012 …as grade mix.3x EV/EBITDA and FY14F 12.693 2QFY13 Sept-12 89.6 1.500) 24.611) (10. the stock trades at FY13F 14.734) 19.280 56.3% -2.929 45.500/ton 2 .7% (4.466 355 288 Act vs Est -0.2% (5. On adjusted earnings (pre-OB removal adjustment EBITDA & PAT.0% -0.9% 13.819 18.5% -13.5% -3.5% -2.741) 28. but PAT post a potential incidence of mining tax).131) 56.134 1QFY13 Jun-12 102.2% 54.0% -28.931 3QFY12 Dec-11 114.566) (5.181 22.609) 45.1% YoY 2QFY13F (%) 10.581 464 308 194.481 (56.8 1.898 (11.308 19.571 (14. We understand that bulk of the inventory liquidation comprised Grade E/F from MCL and SECL.320) (5.1% 11.6% 6.582) 29.5 113.0% -40.2% 1.907) (12.392 481 412 153.9% 9.688) (17.1% -20.366) (12.909) 35. Employee cost includes ~INR2.248) (9.25bn for the ~30% rise in festival bonus to non-executive workers. Implied 2HFY13: EBITDA seems a tad high.378 (18.750) 29.473 33. adjusted for incentives ) was ~INR.1% -1.9% 1. but implied PAT appears conservative (excluding the impact of ‘mining tax’.847 (17.336) (5. we currently maintain our earnings forecast for CIL. based on CIL’s reported 1HFY13 financials.5% 29.3 1.559 58.678) 53.257) 40.617 19.221) 30.4x EV/EBITDA.1% -18.7 1. drop in imported coal cost likely took toll Our brief interaction with the management suggests that a potential combination of grade mix.6 122. which we assume in our base case).334) (5.6% (5.474 29. As per our calculations.484) (12.1% -10.Snapshot (INR m n) Operational Metrics Production (mn tons) Offtake (mn tons) Realization (Rs/ton) Pre-OB EBITDA (Rs/ton) Reported EBITDA (Rs/ton) Key Financials (INR m ) Revenues Employee cost Consumption of Stores & Spares Pow er & Fuel Contractual Expenses Others EBITDA (pre OB rem oval) Margin OB removal EBITDA (reported) Margin Depreciation EBIT Interest expenses Other income PBT Taxes Effective tax rate Net Profit (Norm alized) Extraordinary / Prior period items Reported PAT Source: Company reports.645) (18. Fig.132) 30.872) 24.5% 2.221) (14.1% -2.856 19.808 (142) 20. sharp QoQ decline in landed cost of low-grade imported coal and relative slackness in demand lead to the weakness in e-auction realization during the quarter.3% (19.0 1.326) 48.2% (4.5% (4.714 63.6% 23.e.6% (7. ~INR1.364) (12.7% 10.2% 25.626 508 40. As shown in Figure 3.9% -31.917) (15.168) 29.703) 32.1% 0.2x P/E.9% 6.6% (7.7% -42.1 101.796 (103) 44.647 (18. for 4QFY12.5% 15.3% 44.287) (15.0x P/E.941 29.752 (185) 23.058 24.6% -36.420) 55. 7.7% (64.306 Notes: OB = Overburden Removal Adjustment.1% -31.4% 21.2% Sept-12 89.2% -11.0% 31.270) (19.3% (6. 2: COAL – 2QFY13 Consolidated Earnings Snapshot 2QFY13 EBITDA / PAT a tad below forecast on the back of a 11%/10% decline in e-auction / beneficiated coal realization Qtrly .378 4QFY12 Mar-12 144.218 (129) 18. 6.7% -20.3% 39.725 (65.6% 1.422) 36.766 165 25.9% 1.822) (8.4% -1.3 93.9% 9.2% (6.3% -8.038 14.4% -14. We reiterate our Buy rating.332) (5.869 (88) 30.Nomura | Coal India November 12.0% -11.301) (12.358 24.0% -1.146 29.322) 31.2% -34.9% (5.3% -28.3% -32.7 1.356) 42.

4% 3.970 (314) 41.206 26.074 24.4% Likely to be in-line or marginally low er 11.7 6.731 (126.5% 9.0% To be potentially low er.4% 2.411 21.0% 560 80.9% 11. but implied PAT appears conservative Qtrly .435 2.406 27.025 31. hence total does not add up to 100% Source: Company reports.1 6.159) 51.6 200.5% 1.6% -0.287 1.6% Note: * Mining Tax = 26% of FY12 PAT treated as an outgo.543) 30.5 3.465 34.089 1.750 (258) 30.561 16.0% -10.7 11.588 31.0% To be potentially higher 18.472 (105.0 1.3 78. incl.4% 67.175) 112.9% 4.5% 6.664) (93.108 116.2% 2.9% 84.750) 110.7% 73.395 32.524 120.8% 13.4% 3.5% Likely to be higher 26.201 1. dispatch to power sector at 74% (71.471 458 395 361.8 12.1% (10.460 1.651 20.620) 83.628) (87.1 1.851 2.8% 79.6% 74.7% 8.432 1.6% 16.5 12.5% Jun-12 Sept-12 13.1% 28.217 1.2 101.6% -1.4% 70.190 26.9% 8.9% 1.9% 24.7% 3.033 21.0% 2.4% -23.1% (15.5% 2.838 115.0% Note: Volume and Revenue mix is based on total raw coal dispatched (including by-product sales).562 (141.7% 9.6% 84.8% -10.939 (226) 33.3% (191) 75.8% 2.4% 2.0% Likely to be in-line / marginally higher 6. our implied 2HFY13F reported EBITDA is potentially a tad high.4% (10.2 233.0% 2.7% 5.244) 72.392 1.6% 7.0 245.2 3.205 1.0% To be potentially higher 0.360) 73.9% 14.5 3.440) 86.386 57.602 19.3% 191 (26.6% (26. OB Removal) EBITDA (pre OB rem oval) Margin OB Removal EBITDA (reported) Margin Depreciation EBIT Interest expenses Other income PBT Taxes (Ex.276 1.535 (229) 41.3 166.852 2.5% 14. Mining Tax) Margin Extraordinary / Prior period Mining Tax * Reported PAT 1HFY12 176.382 416 365 276.6% 4.0% 3.4% 2.2% 84.370 2HFY12 259.382 1.225 1.7% YoY (%) 4.3% -6.283 230.5% Likely to be low er 10.447 1.0% 82. Mining Tax) Effective tax rate Net Profit (Ex.086 1.2 85.3% 10.163 1.0% 84.583 41.5 214.398) 97.282 2.980 26.217 20.267 1.447 423 357 310.3% 2. 2012 Fig.432 2.608 96.403 1.744 7.642 108.522 7.321 (29.3% -7.7 7.2% -10.5% 13.908) (90.7% 4.7% (9.6% 75.068) 76.9% -2.3% 14.7% -2.949 (33.9% 4.7% 5.3% -9. 3: Coal India – Implied 2HFY13F Based on CIL's 1HFY13 financials. Source: Company data.330 24.228) 67.042) 62.664 26.683 (146.4 93. Nomura research 3 .3 95.081 109.2% 3QFY12 Dec-11 11.8 1.298 18.1% -27.2% -11.6% 72.248) 30. Nomura research Fig.373 137.590 6.4% in 1QFY13) Key Revenue Metrics Sales volum e (m n tons) E-auction Beneficiated coal Notified (FSA) Sales Mix (%) E-auction Beneficiated coal Notified (FSA) Realization (INR/ton) E-auction Beneficiated coal Notified (FSA) Blended (based on offtake) Blended (based on dispatch) Revenues (INR m n) E-auction Beneficiated coal Notified (FSA) Revenue Mix (%) E-auction Beneficiated coal Notified (FSA) 2QFY12 Sept-11 11.5 180.2% (14.492 472 357 347.581 1.430 26. but realization down 11% / 10% QoQ.974 14.8% 1QFY13 2QFY13 QoQ (%) -13.798) (107.224 30.140 4.600 (39.237 Im p. H/H Rem arks on im plied 2HFY13F 36.8% 25.315 1.331 2.0% 5.154 7.951 23.Snapshot Operational Metrics Production (mn tons) Offtake (mn tons) Realization (Rs/ton) Pre-OB EBITDA (Rs/ton) Reported EBITDA (Rs/ton) Key Financials (INR m ) Revenues Employee cost Other Opex (Ex.7 11.9% -9.237) 90.3% -0.9 1.0% 4QFY12 Mar-12 14.2% 4. 4: Coal India – 2QFY13 Revenue and Offtake mix E-auction / washed coal sales steady at ~12%/~3% of offtake.2% 1HFY12 1HFY13 QoQ (%) 1.8 10.3% 2.3% 297 67.763 24. net of tax benefit.474 2HFY13F 261.8% 5.8% 77.1% 85.0 12.303 20.349 1.3% 4.Nomura | Coal India November 12.7% Likely to be higher (close to 1HFY13 level) 7.2% -8.830 29.6% 75.0% 2.695) 83.394) 33.6% 71.5 12.5% -2.112 14.7% Sept-11 Sept-12 24.533 96.561 2.6% Likely to be marginally low er / in-line 8.9% 73.512 1HFY13 191.758 110.448 61.494 (35.5% 3.6% 200.9% 5.7 3.318 1.0% (9.262 1.1% 1. festival bonus To be potentially low er CIL on track to exceed our forecast CIL likely to meet / exceed our forecast Realization uptick to be potentially low er 24.0% 0.1% -10.285) 30.9% (10.7% 83.

Anirudh Gangahar. Risks that may impede the achievement of the target price Key risks to our investment thesis include: 1) regulatory uncertainty around pricing flexibility and restriction on e-auction coal sales. Issuer Specific Regulatory Disclosures The term "Nomura Group Company" used herein refers to Nomura Holdings. Nomura Group Companies involved in the production of Research are detailed in the disclaimer below. 2012 November 8. hereby certify (1) that the views expressed in this Research report accurately reflect my personal views about any or all of the subject securities or issuers referred to in this Research report.00 Closing price 327.5bn tons as per the JORC Code) at INR83/share.00 Buy 433. is or will be directly or indirectly related to the specific recommendations or views expressed in this Research report and (3) no part of my compensation is tied to any specific investment banking transactions performed by Nomura Securities International. 4 . Inc. Nomura International plc or any other Nomura Group company.. including rake availability.35 368. Inc. Inc. 2) bottlenecks in coal handling and dispatch logistics. (2) no part of my compensation was. 12. and 3) delays in land acquisition/possession and law & order issues hampering production growth.Nomura | Coal India November 11.90 For explanation of ratings refer to the stock rating keys located after chart(s) Valuation Methodology We arrive at our INR398/share 12-month target price for CIL using a sum-of-the-parts of: 1) FCFFbased methodology to value the cash flows from its 10. Appendix A-1 Analyst Certification I.90 368. and 2) MCap/ton based value of CIL’s probable reserves (8.3bn tons) and remaining resources (45. Issuer name Coal India Ticker COAL IN Price INR 347 Price date Stock rating Sector rating 09-Nov-2012 Buy Not rated Disclosures Previous Rating Issuer name Coal India Previous Rating Not Rated Date of change 18-Jul-2011 Coal India (COAL IN) Rating and target price chart (three year history) INR 347 (09-Nov-2012) Buy (Sector rating: Not rated) Date 03-Feb-12 18-Jul-11 18-Jul-11 Rating Target price 398. or any affiliate or subsidiary of Nomura Holdings.6bn tons of proven reserves at INR315/share.

22% of companies with this rating are investment banking clients of the Nomura Group*. are classified as a Sell rating. Unless otherwise noted. for purposes of mandatory disclosures. Global Emerging Markets (ex-Asia): MSCI Emerging Markets ex-Asia. is classified as a Hold rating. *The Nomura Group as defined in the Disclaimer section at the end of this report. Marketing Analysts may also contribute to research reports in which their names appear and publish research on their sector. Target Price A Target Price. A 'Neutral' recommendation indicates that potential upside is less than 15% or downside is less than 5%. Analysts may also indicate absolute upside to target price defined as (fair value . Benchmarks are as follows: United States/Europe: please see valuation methodologies for explanations of relevant benchmarks for stocks. SECTORS A 'Bullish' rating means most stocks in the sector have (or the weighted average recommendation of the stocks under coverage is) a positive absolute recommendation. but not limited to.com/research/globalresearchportal/pages/disclosures/disclosures.com for help.com/research/globalresearchportal/pages/disclosures/disclosures. indicates that the analyst expects the stock to outperform the Benchmark over the next 12 months. Industry Specialists do not contribute in any manner to the content of research reports in which their names appear. Distribution of ratings (Global) The distribution of all ratings published by Nomura Global Equity Research is as follows: 43% have been assigned a Buy rating which. unless otherwise stated in the valuation methodology. US and Latin America The rating system is a relative system indicating expected performance against a specific benchmark identified for each individual stock. the Target Price will equal the analyst's 12-month intrinsic valuation of the stock. SECTORS A 'Bullish' stance. indicates that the analyst expects the sector to perform in line with the Benchmark during the next 12 months. for purposes of mandatory disclosures. for purposes of mandatory disclosures. reflect in part the analyst's estimates for the company's earnings. 5 . In most cases. A 'Bearish' stance.aspx. Any authors named in this report are research analysts unless otherwise indicated. Inc. target price and estimates have been suspended temporarily to comply with applicable regulations and/or firm policies in certain circumstances including. are classified as a Buy rating. 46% of companies with this rating are investment banking clients of the Nomura Group*. please email grpsupporteu@nomura. if discussed. Europe: Dow Jones STOXX 600. and may not occur if the company's earnings differ from estimates. based on an appropriate valuation methodology such as discounted cash flow. A 'Neutral' stance. Explanation of Nomura's equity research rating system in Europe. 12% have been assigned a Reduce rating which. MarkitHub.Current Price) / Current Price. etc. indicates that the analyst expects the stock to underperform the Benchmark over the next 12 months. A rating of 'Suspended' indicates that the rating and target price have been suspended temporarily to comply with applicable regulations and/or firm policies in certain circumstances including when Nomura is acting in an advisory capacity in a merger or strategic transaction involving the subject company. the fair value will equal the analyst's assessment of the current intrinsic fair value of the stock using an appropriate valuation methodology such as discounted cash flow or multiple analysis. 45% have been assigned a Neutral rating which. multiple analysis. and trading securities held by a research analyst account. A 'Bearish' rating means most stocks in the sector have (or the weighted average recommendation of the stocks under coverage is) a negative absolute recommendation. The achievement of any target price may be impeded by general market and macroeconomic trends.aspx or requested from Nomura Securities International. Capital IQ. and may not be subject to FINRA Rule 2711 and NYSE Rule 472 restrictions on communications with covered companies. indicates that the analyst expects the sector to underperform the Benchmark during the next 12 months. Factset. STOCKS A rating of 'Buy'.com/research. As at 30 September 2012.nomuranow. Explanation of Nomura's equity research rating system in Japan and Asia ex-Japan STOCKS Stock recommendations are based on absolute valuation upside (downside). A rating of 'Reduce'. when Nomura is acting in an advisory capacity in a merger or strategic transaction involving the company. Industry Specialists identified in some Nomura International plc research reports are employees within the Firm who are responsible for the sales and trading effort in the sector for which they have coverage. on 1-877-865-5752. Marketing Analysts identified in some Nomura research reports are research analysts employed by Nomura International plc who are primarily responsible for marketing Nomura’s Equity Research product in the sector for which they have coverage.. indicates that the analyst expects the stock to perform in line with the Benchmark over the next 12 months. public appearances. A rating of 'Neutral'. A rating of 'Suspended'. which can be accessed at: http://go. In most cases. subject to limited management discretion. may not be associated persons of NSI. and by other risks related to the company or the market.Nomura | Coal India November 12. A 'Neutral' rating means most stocks in the sector have (or the weighted average recommendation of the stocks under coverage is) a neutral absolute recommendation. a portion of which is generated by Investment Banking activities. indicates that the analyst expects the sector to outperform the Benchmark during the next 12 months. subject to limited management discretion. Reuters and ThomsonOne. Investors should not expect continuing or additional information from Nomura relating to such securities and/or companies. Important disclosures may be read at http://go.current price)/current price. etc. Securities and/or companies that are labelled as 'Not rated' or shown as 'No rating' are not in regular research coverage of the Nomura entity identified in the top banner. Global Emerging Markets (ex-Asia): MSCI Emerging Markets ex-Asia. A 'Reduce' recommendation indicates that potential downside is 5% or more. Benchmarks are as follows: United States: S&P 500. Bloomberg. 2012 Important Disclosures Online availability of research and conflict-of-interest disclosures Nomura research is available on www. If you have any difficulties with the website. Middle East and Africa. the non-US analysts listed at the front of this report are not registered/qualified as research analysts under FINRA/NYSE rules. 40% of companies with this rating are investment banking clients of the Nomura Group*.nomuranow. A 'Buy' recommendation indicates that potential upside is 15% or more. The analysts responsible for preparing this report have received compensation based upon various factors including the firm's total revenues. indicates that the rating.nomuranow. which is defined as (Target Price .

but not limited to. If this document has been distributed by electronic transmission. They do not address the suitability of securities or the suitability of securities for investment purposes. expert or institutional investors as defined by the Securities and Futures Act (Chapter 289). BUT HAS NOT BEEN INDEPENDENTLY VERIFIED BY NOMURA GROUP. with the sole or joint contributions of one or more Nomura entities whose employees and their respective affiliations are specified on page 1 herein or identified elsewhere in the document. Any MSCI sourced information in this document is the exclusive property of MSCI Inc. issued by their foreign affiliates in respect of recipients who are not accredited.. Nomura Group companies may also act as market maker or liquidity provider (as defined within Financial Services Authority (‘FSA’) rules in the UK) in the financial instruments of the issuer. Investors should consider this document as only a single factor in making their investment decision and. including tax advice. THIS MATERIAL IS: (I) FOR YOUR PRIVATE INFORMATION. or related to. as such. Clients should consider whether any advice or recommendation in this report is suitable for their particular circumstances and. This document has also been approved for distribution in Malaysia by NSM. Nomura Group manages conflicts with respect to the production of research through its compliance policies and procedures (including. recommendations contained in one type of research product may differ from recommendations contained in other types of research product. such as e-mail. Clients outside of the US may access the Nomura Research Trading Ideas platform (Retina) at http://go. expenses. This document may contain information obtained from third parties. NO PART OF THIS MATERIAL MAY BE (I) COPIED. Additional information is available upon request and disclosure information is available at the Nomura Disclosure web page: http://go. Nomura Australia Ltd. New York. INF231299034. Ltd. corrupted. Where the information contains an indication of future performance. Tel: +91 22 4037 4037. any warranties of merchantability or fitness for a particular purpose or use. India. re-disseminated or used to create any financial products. compensatory. This document has not been approved for distribution in the Kingdom of Saudi Arabia (‘Saudi Arabia’) or to clients other than 'professional clients' in the United Arab Emirates (‘UAE’) by Nomura Saudi Arabia. Nomura Group produces a number of different types of research product including. this document has been distributed by NSL. or needs of individual investors. you represent that you are not located in Saudi Arabia or that you are a 'professional client' in the UAE and agree to comply with these restrictions. MSCI. computing or compiling the information hereby expressly disclaim all warranties of originality. computing or compiling the information have any liability for any damages of any kind. Nomura Securities Malaysia Sdn. Bhd. AND (III) BASED UPON INFORMATION FROM SOURCES THAT WE CONSIDER RELIABLE. or income derived from. Conflicts of Interest. Taiwan. destroyed. or have long or short positions in. Neither this document nor any copy thereof may be taken or transmitted or distributed. By accepting to receive this document. UK. CNS is not a Nomura entity. Mumbai. if appropriate. reliable. and may not. the 'Nomura Group'). Third party content providers give no express or implied warranties. costs. MSCI and the MSCI indexes are services marks of MSCI and its affiliates. Nomura Group does not warrant or represent that the document is accurate. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase hold or sell securities.nomuranow. any transaction should be executed via a Nomura entity in your home jurisdiction. The user assumes the entire risk of any use made of this information. ‘CNS Thailand’ next to an analyst’s name on the front page of a research report indicates that the analyst is employed by Capital Nomura Securities Public Company Limited (‘CNS’) to provide research assistance services to NSL under a Research Assistance Agreement. Nomura Group. whether as a result of differing time horizons. but not limited to. SEBI Registration No: BSE INB011299030. Italy’). financial situations. Fax: +91 22 4037 4111. Level 11. It does not constitute a personal recommendation. in no event shall MSCI. to the extent permitted by applicable law and/or regulation. be redistributed to retail clients as defined by the FSA. Nomura Group does not provide tax advice. and should not be relied on as investment advice. include: Nomura Securities Co. methodologies or otherwise. indirect. by NSI.nomuranow. and. Recipients of this document in Singapore should contact NSL in respect of matters arising from. and/or its officers. Any comments or statements made herein are those of the author(s) and may differ from views held by other parties within Nomura Group. BY ANY MEANS. directly or indirectly. Dr. Italian Branch (‘NIplc. AND WE ARE NOT SOLICITING ANY ACTION BASED UPON IT. or in connection with. regulated by the Monetary Authority of Singapore). regardless of the cause. such forecasts may not be a reliable indicator of future performance. please request a hard-copy version. arrive late or incomplete. This document has been approved for distribution in the UK and European Economic Area as investment research by NIplc. of issuers or securities mentioned herein. or contain viruses. where it concerns securities. OR (II) REDISTRIBUTED WITHOUT THE PRIOR WRITTEN CONSENT OF A MEMBER OF NOMURA GROUP. Any failure to comply with these restrictions may constitute a violation of the laws of the UAE or Saudi Arabia.or. Reproduction and distribution of third party content in any form is prohibited except with the prior written permission of the related third party.aspx Copyright © 2012 Nomura International (Hong Kong) Ltd. NIplc or any other member of Nomura Group. exemplary. or options or other derivative instruments based thereon. deal as principal. are subject to change without notice. misuse. in such case. This document has been approved by NIHK. Chinese Wall and Confidentiality policies) as well as through the maintenance of Chinese walls and employee training. 6 . US. Shivsagar Estate. incidental. Korea (Information on Nomura analysts registered with the Korea Financial Investment Association ('KOFIA') can be found on the KOFIA Intranet at http://dis. Different groups of clients may receive different products and services from the research department depending on their individual requirements. regulated by the Australian Securities and Investment Commission ('ASIC') and holder of an Australian financial services licence number 246412. and/or. including. accuracy. this information and any other MSCI intellectual property may not be reproduced. Malaysia. including the opinions and estimates contained herein. and are not responsible for any errors or omissions (negligent or otherwise). Without prior written permission of MSCI. as the case may be. seek professional advice. Affiliates and subsidiaries of Nomura Holdings. special or consequential damages. ('NSC') Tokyo. this will be separately disclosed within the specific issuer disclosures. PHOTOCOPIED. including ratings. Annie Besant Road. this document. may not be offered or sold in the US or to US persons unless they have been registered under the 1933 Act. Inc. Japan. legal fees. Third party content providers shall not be liable for any direct. (‘NAL’). (‘NIHK’). It is intended only for investors who are 'eligible counterparties' or 'professional clients' as defined by the FSA. Madrid Branch (‘NIplc. the investment. Inc. Indonesia. (‘MSCI’). or otherwise. which is authorized and regulated by the FSA and is a member of the London Stock Exchange. for distribution in Hong Kong by NIHK. its affiliates and any third party involved in. the securities. commodities or instruments. ('NSI'). Where the activity of market maker is carried out in accordance with the definition given to it by specific laws and regulations of the US or other jurisdictions. Nomura Financial Advisory and Securities (India) Private Limited (‘NFASL’). fit for any particular purpose or merchantable and does not accept liability for any act (or decision not to act) resulting from use of this document and related data. which is regulated by the Hong Kong Securities and Futures Commission.com/research/globalresearchportal/pages/disclosures/disclosures. Singapore (Registration number 197201440E. Nomura Group is under no duty to update this document. a US-registered broker-dealer. NSE INB231299034. Third party content providers do not guarantee the accuracy. which is authorized and regulated in Australia by the ASIC. (‘NSL’). among others. any of its affiliates or any third party involved in. NSL accepts legal responsibility for the content of this document. 2012 Disclaimers This document contains material that has been prepared by the Nomura entity identified at the top or bottom of page 1 herein. NIplc. Nomura Securities International. merchantability or fitness for a particular purpose with respect to any of this information. This information is provided on an "as is" basis.com/equities/tradingideas/retina/ Figures presented herein may refer to past performance or simulations based on past performance which are not reliable indicators of future performance. as defined by the FSA. Without limiting any of the foregoing. that may be associated with any investment decision. may.Nomura | Coal India November 12.kr). Moreover. Nomura International (Hong Kong) Ltd. Nomura Financial Investment (Korea) Co. under the US Securities Exchange Act of 1934.kofia. agent. (‘NSM’). Plot F. To the maximum extent permissible all warranties and other assurances by Nomura group are hereby excluded and Nomura Group shall have no liability for the use. including ratings. The sender therefore does not accept liability for any errors or omissions in the contents of this document. including ratings from credit ratings agencies such as Standard & Poor’s. This document has been approved for distribution in Australia by NAL. the report should not be viewed as identifying or suggesting all risks. fundamental analysis. completeness. which may arise as a result of electronic transmission. including any indices. If verification is required. Nomura Group publishes research product in a number of different ways including the posting of product on Nomura Group portals and/or distribution directly to clients.T. or related to. punitive. by any person other than those authorised to do so into Saudi Arabia or in the UAE or to any person located in Saudi Arabia or to clients other than 'professional clients' in the UAE. Worli. Taipei Branch (‘NITB’). Nomura Singapore Ltd. futures and foreign exchange. or take into account the particular investment objectives. Mumbai. which accepts responsibility for its contents in accordance with the provisions of Rule 15a-6. (collectively. (II) NOT TO BE CONSTRUED AS AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY IN ANY JURISDICTION WHERE SUCH OFFER OR SOLICITATION WOULD BE ILLEGAL. In Singapore. Unless governing law permits otherwise. Hong Kong. directors and employees. quantitative analysis and short term trading ideas. Nomura International plc ('NIplc'). Opinions or estimates expressed are current opinions as of the original publication date appearing on this material and the information. or for the results obtained from the use of such content. then such transmission cannot be guaranteed to be secure or error-free as information could be intercepted. INE 231299034.. or buy or sell. simulations are based on models and simplifying assumptions which may oversimplify and not reflect the future distribution of returns. Certain securities are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of. Australia (ABN 48 003 032 513). this material is distributed in the US. Nomura International (Hong Kong) Ltd. P. All rights reserved. or losses (including lost income or profits and opportunity costs) in connection with any use of their content. completeness. Unless prohibited by the provisions of Regulation S of the 1933 Act. Madrid’) and NIplc. MCX: INE261299034). (‘NFIK’). or except in compliance with an exemption from the registration requirements of the 1933 Act.. OR DUPLICATED IN ANY FORM. The securities described herein may not have been registered under the US Securities Act of 1933 (the ‘1933 Act’). Nomura Indonesia (‘PTNI’). if any. complete. lost.400 018. or distribution of this information. India (Registered Address: Ceejay House. therefore. timeliness or availability of any information. Ltd. direct or indirect.

Sign up to vote on this title
UsefulNot useful