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4QFY2013 Result Update | Mining

June 3, 2013

NMDC
Performance Highlights
Quarterly highlights (Standalone)
Particulars (` cr) Net sales EBITDA % margin Adj. PAT 4QFY13 3,204 2,156 67.3 1,871 4QFY12 2,595 1,975 76.1 1,643 % chg (yoy) 23.5 9.1 (885)bp 13.9 3QFY13 2,047 1,390 67.9 1,292 % chg (qoq) 56.5 55.0 (65)bp 44.8

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Mining 46,566 (21,025) 1.0 203/115 605,804 1 19,610 5,939 NMDC.BO NMDC@IN

`117 `156
12 months

Source: Company, Angel Research

NMDC reported better-than-expected 4QFY2013 results on the back of higher-than-expected sales volumes. We maintain Buy on the stock due to its inexpensive valuations. Robust operational performance: NMDCs net sales increased by 23.5% yoy

to `3,204cr (above our estimates of `2,659cr), mainly due to higher volumes which grew 27.8% yoy to 8.2mn tonne. Iron ore realizations however declined 3.5% yoy to `3,843/tonne.
EBITDA/tonne slumps on lower realizations: The companys EBITDA increased

by 9.1% yoy to `2,156cr. However, the EBITDA margin contracted 885bp yoy to 67.3%. The EBITDA/tonne decreased by 14.6% yoy to `2,616 due to a fall in the average realization. The company also reported an exceptional item of `406cr relating to penalty and contribution towards the Special Purpose Vehicle (SPV) created for Karnataka illegal mining cases. Excluding this exceptional item, the adjusted net profit grew by 13.9% yoy to `1,871cr (above our estimate of `1,721cr).
Outlook and valuation: Over the past five years, NMDC has traded at an average EV/EBITDA of 13.0x compared to its current valuation of 3.3x FY2015E EV/EBITDA. A strong balance sheet, presence in sellers market (iron ore), low cost of production, high-grade mines, long mine life and high dividend yield (6.0% at CMP) make NMDC an attractive bet at the current levels. Valuing the stock at 5.0x FY2015E EV/EBITDA, we derive a fair price of `156 and recommend Buy on the stock. Key financials (Standalone)
Y/E March (` cr) Net sales % chg Net profit % chg FDEPS (`) OPM (%) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 80.0 11.5 4.8 3.7

Abs. (%) Sensex NMDC

3m 3.7

1yr 22.8

3yr 15.2 22.8

(15.0) (28.8)

FY2012 11,261 (1.0) 7,266 11.8 18.3 79.3 6.4 1.9 33.3 40.1 2.3 2.9

FY2013E 10,704 (4.9) 6,342 (12.7) 16.0 68.9 7.3 1.7 24.4 27.7 2.5 3.7

FY2014E 10,461 (2.3) 6,441 1.6 16.2 71.6 7.2 1.5 22.1 25.1 2.6 3.7

FY2015E 11,892 13.7 6,971 8.2 17.6 72.6 6.7 1.3 21.4 25.9 2.3 3.2

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

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

Please refer to important disclosures at the end of this report

NMDC | 4QFY2013 Result Update

Exhibit 1: 4QFY2013 performance (Standalone)


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

4QFY13 3,204 (65) (2.0) 100 3.1 161 5.0 852 26.6 1,048 32.7 2,156 67.3 2,156 67.3 13 39 547 (406.0) 2,245 70.1 780 34.8 1,871

4QFY12 2,595 (34) (1.3) 81 3.1 127 4.9 446 17.2 619 23.9 1,975 76.1 1,975 76.1 1 32 547 (51.3) 2,440 94.0 797 32.7 1,643

yoy % 23.5 24.3 27.6 91.2 69.3 9.1

3QFY13 2,047 (41) (2.0) 64 3.1 139 6.8 494 24.1 656 32.1 1,390 67.9 -

qoq % 56.5 59.8 57.0 16.0 72.4 59.7 55.0

FY2013 10,704 184 1.7 289 2.7 580 5.4 871 8.1 3,326 31.1 7,378 68.9 -

FY2012 11,261 23 0.2 257 2.3 529 4.7 406 3.6 2,336 20.7 8,925 79.3 8,925 79.3 12.2 130 2,016 10,811 96.0 3,494 32.3 7,266

yoy % (4.9) 711.3 12.6 9.6 114.4 42.4 (17.3)

9.1

1,390 67.9 -

55.0

7,378 68.9 13

(17.3)

20.1 0.1 (8.0) (2.1) 13.9

34 556 1,913 93.5 621 32.5 1,292

14.2 (1.6) 17.4 25.7 44.8

139 2,226 9,465 88.4 3,123 33.0 6,342

6.4 10.4 (12.4) (10.6) (12.7)

Exhibit 2: 4QFY2013 Actual vs Angel estimates


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

Actual 3,204 2,156 67.3 1,871

Estimates 2,659 2,039 76.7 1,721

Variation (%) 20.5 5.7 (942)bp 8.7

June 3, 2013

NMDC | 4QFY2013 Result Update

Result highlights
Volumes jump 27.8% yoy
NMDCs net sales increased by 23.5% yoy to `3,204cr (above our estimate of `2,659cr), mainly due to higher volumes, which grew 27.8% yoy to 8.2mn tonne. Iron ore realizations however declined 3.5% yoy to `3,843/tonne.

Exhibit 3: Sales volumes increase 27.8% yoy


9
8

Exhibit 4: Realization decreased by 3.5% yoy


8.2 60
50

8.5
6.9

4,500
4,400 4,300

7.6
6.4

4,434

4,394

4,442

60
50

6.5

6.8 5.9 5.3

40

(mn tonnes)

(`/tonne)

30

4,200
4,100 4,000

4,136 4,015
4,030 3,982 3,820 3,843

40 30 20 10

(%)

10

3
2

0
(10)

3,900
3,800 3,700 3,600

0 (10) (20) 4QFY11 2QFY12 4QFY12 Average realization 2QFY13 4QFY13 % yoy (RHS)

1
0 4QFY11 2QFY12 4QFY12 2QFY13 4QFY13

(20)
(30)

3,500

Sales volume

% yoy (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 5: Net sales increased by 23.5% yoy


3,500 3,000
2,500 3,062 3,204

30 20

2,822

2,595

2,840

2,612 2,048

10 0 (10) (20) (30) (40)

(` cr)

2,000 1,500 1,000 500 0

2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 Net sales (LHS) yoy change (RHS)
Source: Company, Angel Research

EBITDA/tonne decreased by 14.6% yoy


The companys EBITDA increased by 9.1% yoy to `2,156cr. However, the EBITDA margin contracted 885bp yoy to 67.3%. EBITDA/tonne decreased by
14.6% yoy to `2,616 due to fall in average realization. Other expenditure grew by 91.2% yoy to `852cr during the quarter.

June 3, 2013

(%)

(%)

20

NMDC | 4QFY2013 Result Update

Exhibit 6: EBITDA/tonne decreased by 14.6% yoy


4,000 3,500 3,000 3,230 3,268 3,214 3,532 3,062
3,385 3,307

Exhibit 7: EBITDA margin stood at 67.3%


70 60 50 40 30 20 10 0 (10) (20) (30) (40) 3000
2500 2000 72.7 81.0 79.5 80.1 76.1 81.0

90 67.3 74.1 67.9


80

2,615 2,616

70
60 40 30 50

( ` /tonne)

2,500 2,000 1,500 1,000 500 0


4QFY11 2QFY12 4QFY12 2QFY13 4QFY13

( ` cr)

(%)

1000 500

20
10

0 4QFY11 2QFY12 EBITDA (LHS) 4QFY12 2QFY13 4QFY13

EBITDA/tonne

% yoy (RHS)

EBITDA margin (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Net profit declined by 10.8% yoy


The companys depreciation expenses grew by 20.1% yoy to `39cr and there was an exceptional item of `406cr relating to penalty and contribution towards the Special purpose Vehicle (SPV) created for Karnataka illegal mining cases. Consequently, the adjusted net profit grew by 13.9% yoy to `1,871cr (above our estimate of `1721cr).

Exhibit 8: Net margin stood at 58.4%


2500 55.7 2000 1500
(` cr)

80 64.7 64.1 65.9 63.3 67.1 64.3 63.1

58.4

70 60 50
40

1000 500 0 4QFY11 2QFY12 4QFY12 2QFY13


Net profit margin (RHS)

30 20 10

0 4QFY13
Net profit (LHS)

Source: Company, Angel Research

June 3, 2013

(%)

1500

NMDC | 4QFY2013 Result Update

Investment rationale
Iron ore capacity to expand
NMDC aims to ramp up its production capacity to 48mn tonne by FY2015 (current capacity 32mn tonne) through increased exploration of its existing mines and development of new mines (Deposit 11B and Deposit 13 in Bailadila and Kumaraswany, respectively, in Karnataka). Given its past track record, we forecast iron ore production capacity to increase to 40mn tonne by FY2015 (compared to its target of 48mn tonne). Although sales volumes declined 3.9% yoy in FY2013, we expect them to grow at a CAGR of 8.8% over FY2013-15E.

Exhibit 9: Iron ore capacity expansion details


60
50
(mn tonnes)

7 7

48

40

32 30
20

10
0 Current Bailadila 11/B Kurumaswamy Dep. 10, 11/A Total

Source: Company, Angel Research

Low cost producer of iron ore


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

Exhibit 10: NMDCs opex & EBITDA per tonne trend


70 60 66 63

Exhibit 11: Employee costs as a percentage of sales


45.0
40.0 35.0 30.0

37.3

37.7

40.5

50
(US$/tonne) (%)

40
30 20 10 0 11

36

25.0 20.0 18.0 13.6


6.7 4.3 4.7 17.4 15.0 10.0 5.0

14

16

FY2010 Opex/tonne FY2011 EBITDA/tonne FY2012 FY2010 NMDC FY2011 SAIL Coal India FY2012

Source: Company, Angel Research

Source: Company, Angel Research

June 3, 2013

NMDC | 4QFY2013 Result Update

Seeking to diversify into steel making


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

Exhibit 12: Chhattisgarh steel project status


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

Source: Company, Angel Research

Outlook and valuation


Over the past five years, NMDC has traded at an average EV/EBITDA of 13.0x, compared to its current valuation of 3.3x FY2015E EV/EBITDA. A strong balance sheet, presence in sellers market (iron ore), low cost of production, high-grade mines and long mine life make NMDC an attractive bet at the current levels. Valuing the stock at 5.0x FY2015E EV/EBITDA, we derive a fair price of `156 and recommend Buy on the stock.

Exhibit 13: Key assumptions


FY2014E Sales volume (mn tonne) Average realization (US$/tonne)
Source: Angel Research

FY2015E
31 3,836

28 3,736

Exhibit 14: EPS Angel forecast vs consensus


Year (`) FY2014E FY2015E
Source: Bloomberg, Angel Research

Angel forecast
16.2 17.6

Bloomberg consensus 16.8 17.9

Variation (%)
(3.3) (1.8)

June 3, 2013

NMDC | 4QFY2013 Result Update

Exhibit 15: EV/EBITDA band


250,000

200,000 150,000
(` cr)

100,000 50,000 0 Apr-09 Dec-09 5x Aug-10 8x Apr-11 11x Dec-11 17x Aug-12 Apr-13 14x

Source: Bloomberg, Angel Research

Exhibit 16: P/E band


600 500 400
(`)

300 200 100 0

Apr-09

Dec-09
9x

Aug-10

Apr-11
14x

Dec-11
19x

Aug-12
24x

Apr-13

Source: Bloomberg, Angel Research

Exhibit 17: P/BV band


700
600 500

(`)

400
300 200

100
0 Apr-09 Dec-09 Aug-10 Apr-11 Dec-11 Aug-12 Apr-13

2.0x
Source: Bloomberg, Angel Research

4.0x

6.0x

8.0x

June 3, 2013

NMDC | 4QFY2013 Result Update

Exhibit 18: Recommendation summary


Companies CMP Sesa Goa NMDC Coal India MOIL Target Reco. Mcap Upside (` cr) (%) P/E (x) FY14E FY15E P/BV (x) FY14E FY15E EV/EBITDA (x) FY14E FY15E RoE (%) FY14E FY15E RoCE (%) FY14E FY15E (`) price (`)

161 117 326 199

- Neutral 156 248 Buy Buy

13,753 46,566 3,410

33 5 24

5.4 7.2 11.2 7.4

5.4 6.7 10.8 6.9

0.7 1.5 3.2 1.1

0.6 1.3 2.7 1.0

14.0 3.7 5.5 2.0

11.6 3.2 5.2 1.4

14.3 22.1 37.4 15.4

12.5 21.4 34.6 14.7

5.2 25.1 22.4 14.5

5.5 25.9 20.3 13.7

343 Accum. 202,344

Source: Company, Angel Research

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

June 3, 2013

NMDC | 4QFY2013 Result Update

Profit & loss statement (Standalone)


Y/E March (` cr) Net Sales Other operating income Total operating income % chg Total Expenditure Net Raw Materials Personnel Other EBITDA % chg (% of Net Sales) Depreciation & Amort. EBIT % chg (% of Net Sales) Interest & other Charges Other Income Recurring PBT % chg Extraordinary Inc/(Exp.) PBT (reported) Tax (% of PBT) PAT (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg FY2010 6,239 6,239 (17.5) 1,817 211 420 1,186 4,422 (24.2) 70.9 73 4,349 (24.6) 69.7 862 5,211 (21.6) 5,211 1,760 33.8 3,451 3,451 (21.1) 55.3 8.7 8.7 (21.1) FY2011 11,369 11,369 82.2 2,722 123 492 2,107 8,646 95.5 76.1 125 8,521 95.9 75.0 1,206 9,727 86.7 9,727 3,228 33.2 6,499 6,499 88.3 57.2 16.4 16.4 88.3 FY2012 11,261 11,261 (1.0) 2,336 234 529 1,573 8,925 3.2 79.3 130 8,794 3.2 78.1 2,016 10,811 11.1 (513.0) 10,760 3,494 32.5 7,266 7,266 11.8 64.5 18.3 18.3 11.8 FY2013E 10,704 10,704 (4.9) 3,326 105 580 2,642 7,378 (17.3) 68.9 139 7,239 (17.7) 67.6 2,226 9,465 (12.4) 9,465 3,123 33.0 6,342 6,342 (12.7) 59.2 16.0 16.0 (12.7) FY2014E 10,461 10,461 (2.3) 2,972 129 603 2,240 7,489 1.5 71.6 145 7,344 1.4 70.2 2,270 9,614 1.6 9,614 3,173 33.0 6,441 6,441 1.6 61.6 16.2 16.2 1.6 FY2015E 11,892 11,892 13.7 3,264 157 627 2,480 8,628 15.2 72.6 153 8,475 15.4 71.3 1,930 10,405 8.2 10,405 3,434 33.0 6,971 6,971 8.2 58.6 17.6 17.6 8.2

June 3, 2013

NMDC | 4QFY2013 Result Update

Balance sheet (Standalone)


Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Reserves& Surplus Shareholders Funds Total Loans Deferred Tax Liability Other Long term Liabilties Long Term Provisions Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Long Term Loans and Adv. Other non- current assets Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 1,771 984 787 561 76 14,264 12,855 683 726 1,348 12,916 17 14,357 2,273 (1,174) 1,099 568 136 199 11 19,086 17,228 557 1,300 1,744 17,342 19,354 2,388 (1,199) 1,189 1,494 248 512 7 23,199 20,265 1,048 1,886 2,105 21,094 24,543 3,388 (1,338) 2,050 4,894 248 512 7 22,074 19,163 1,048 1,864 2,147 19,927 27,638 3,888 (1,483) 2,405 8,394 248 512 7 21,348 18,553 1,048 1,747 2,081 19,267 30,833 4,388 (1,636) 2,752 11,894 248 512 7 21,279 18,448 1,048 1,783 2,135 19,144 34,557 14,357 396 13,876 14,272 85 396 18,818 19,215 103 22 15 19,354 396 24,010 24,406 100 23 13 24,543 396 27,105 27,501 100 23 13 27,638 396 30,299 30,696 100 23 13 30,833 396 34,023 34,420 100 23 13 34,557 FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E

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NMDC | 4QFY2013 Result Update

Cash flow statement (Standalone)


Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Others Direct taxes paid Cash Flow from Operations Inc./ (Dec.) in Fixed Assets Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E 5,207 73 926 (832) (1,770) 3,604 (422) 828 407 (895) (895) 3,115 9,740 12,855 9,726 122 (525) (1,144) (3,318) 4,862 (456) (3,961) (4,417) (994) (0) (994) (550) 1,648 1,153 10,760 184 (889) (1,962) (3,502) 4,595 (1,211) 472 (739) (1,911) (0.1) (1,911) 1,945 1,153 3,098 9,465 139 64 (3,123) 6,545 (4,400) (4,400) (3,247) (3,247) (1,102) 3,098 19,163 9,614 145 51 (3,173) 6,638 (4,000) (4,000) (3,247) (3,247) (609) 19,163 18,553 10,405 153 18 (3,434) 7,142 (4,000) (4,000) (3,247) (3,247) (105) 18,553 18,448

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NMDC | 4QFY2013 Result Update

Key ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio (%) Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (EBIT / Int.) (0.9) (2.9) (0.9) (2.0) (0.8) (2.3) (0.7) (2.6) (0.6) (2.5) (0.5) (2.2) 3.6 60 43 91 27 5.6 48 15 62 3 4.8 68 20 68 15 3.7 65 20 68 27 2.9 60 20 68 26 2.9 50 20 68 22 33.4 347.9 26.6 50.6 744.9 38.8 40.1 444.2 33.3 27.7 246.6 24.4 25.1 210.7 22.1 25.9 222.9 21.4 69.7 66.2 3.8 174.0 75.0 66.8 6.7 333.3 78.1 67.7 3.7 197.7 67.6 67.0 1.7 79.1 70.2 67.0 1.0 48.6 71.3 67.0 0.9 40.7 8.7 8.7 8.9 1.7 36.0 16.4 16.4 16.7 2.2 48.5 18.3 18.3 18.7 3.2 61.6 16.0 16.0 16.3 7.0 69.4 16.2 16.2 16.6 7.0 77.4 17.6 17.6 18.0 7.0 86.8 13.4 13.2 3.3 1.5 5.4 7.6 2.3 7.1 7.0 2.4 1.8 2.6 3.4 1.5 6.4 6.3 1.9 2.7 2.3 2.9 1.1 7.3 7.2 1.7 6.0 2.5 3.7 1.0 7.2 7.0 1.5 6.0 2.6 3.7 0.9 6.7 6.5 1.3 6.0 2.3 3.2 0.8 FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E

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NMDC | 4QFY2013 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

NMDC No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

June 3, 2013

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