January 14, 2013

Strategy
INDIA STRATEGY THEMATIC

Tomorrows ten baggers, revisited!

On 19 January 2012, we had highlighted 25 stocks as potential ten baggers over the next ten years. These ten baggers were identified based on their relentless and consistent improvement in financial performance over long periods of time (usually, six years). The return target from such a portfolio is 26% per annum as this is the return that a stock needs to deliver to be 10x in ten years. The January 2012 ten baggers have comfortably beaten this target by clocking in nearly 30% return over the past year. Now, we publish this years iteration of ten baggers.

Analyst contacts
Gaurav Mehta
Tel: +91 22 3043 3255 gauravmehta@ambitcapital.com

Saurabh Mukherjea, CFA

Tel: +91 22 3043 3174 saurabhmukherjea@ambitcapital.com

Exhibit A: The ten baggers

Ticker Company MCap (US$ mn) 504 2,236 659 303 635 373 1,553 4,338 1,029 8,573 1,704 385 670 643 7,659 533 891 3,248 1,325 1,387 281 1,156 40,518 315 2,640 4,791 717 2,978 1,160 749

Beyond cyclical BUYs & SELLs, we are thinking long term

Over the past few months, our portfolio strategy research has focused on helping clients play the ongoing cyclical recovery in India. Whilst we remain focused on tactical plays, we cannot lose sight of the big picture in a country like India where the robustness of the economy ensures that well managed companies focused on cash generation have a high chance of doing well especially if they are starting from a small base. Structural plays, like the ones we attempt to identify here, are financially strong firms (with credible managements) that remain consistent outperformers on a cross-cyclical basis.

Attractive Valuations* Carborundum CU IN Equity Uni. EXID IN Equity Exide Inds. JAGP IN Equity MLIFE IN Equity REDI IN Equity SADE IN Equity TPW IN Equity TTAN IN Equity BATA IN Equity NEST IN Equity OBER IN Equity PSYS IN Equity SHOP IN Equity WHIRL IN Equity APNT IN Equity BIL IN Equity BYRCS IN Equity CDH IN Equity CRISIL IN Equity EIM IN Equity ELEQ IN Equity IPCA IN Equity ITC IN Equity KJC IN Equity KKC IN Equity LPC IN Equity SI IN Equity SKB IN Equity TRP IN Equity TTKPT IN Equity Jagran Prakashan Mahindra Life. Redington India Sadbhav Engg. Torrent Power Titan Inds. Bata India Nestle India Oberoi Realty Persistent Sys Shoppers Stop Whirlpool India Asian Paints Balkrishna Inds Bayer Crop Sci. Cadila Health. CRISIL Eicher Motors Elgi Equipment Ipca Labs. ITC Kajaria Ceramics Cummins India Lupin Supreme Inds. GlaxoSmith C H L Torrent Pharma. TTK Prestige

The Greatness framework

Consistent improvements in corporate performance are more important than great leapsthis has been the guiding philosophy of our greatness framework which lies at the core of our process of identifying structurally sound businesses. Not only do the great firms perform significantly better than an average firm on a variety of measures, more importantly, they show a more consistent and calibrated approach to growth over long periods (see Exhibit 5 on page 6). In this note, we update our greatness framework to include FY12 numbers. This framework uses the following key attributes to measure consistent financial improvements across the universe of BSE500 firms (excluding Financial Services): judicious capex, conversion of capex to sales, pricing discipline, balance sheet discipline, cash generation and EPS improvement, and return ratio improvement. For each of these attributes, we look for two kinds of improvements:

Moderate Valuations**

Rich Valuations***

Improvements in performance over FY10-12 versus FY07-09; and Consistency in performance over FY07-12

The winning stocks

We find that 77 firms from the BSE500 universe pass more than two-thirds of the tests in our greatness framework. Of these 77, only 30 firms pass our accounting quality and corporate governance filters and have ADV>US$0.2mn (refer to Exhibit A). Of these 30 firms, the following 8 firms trade below their five-year valuation averages currently and look particularly attractive: Carborundum, Torrent Power, Sadbhav Engineering, Mahindra Life, Exide, Redington, Titan and Jagaran Prakashan. However, for the long term all 30 stocks remain candidates to be ten baggers from our perspective (as we show in the note, todays valuations do not have a significant effect on long term returns!). Of these 30 firms, we have bottom-up coverage with BUYs on Redington, Sadbhav, Torrent Power, Oberoi Realty, Asian Paints, Balkrishna Industries, Cadila Healthcare, Eicher Motors, Cummins India and TTK Prestige.

Source: Ambit Capital research; * Trading below five-year P/E, P/B, EV/EBITDA (on at least 2 of these 3 measures) ** Trading below either five-year P/E, five-year P/B or five-year EV/EBITDA (on one of these three measures) *** Trading above five-year P/E, P/B, EV/EBITDA

Ambit Capital and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, investors should be aware that Ambit Capital may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

Please refer to disclaimer section on the last page for further important disclaimer.

Strategy

CONTENTS
Philosophy and framework............................................... 3 Performance check on the January 2012s tenbaggers... 5 Quantifying Greatness..... 6 2013s ten bagger list.... 7 Valuations - A long-term perspective!.......13 Appendix: Greatness framework on smaller caps....14

Ambit Capital Pvt Ltd

Strategy

Philosophy and framework

Greatness is not in where we stand, but in what direction we are moving.
The greatness framework The framework essentially hinges on using publicly available historical data to assess which firms have over a sustained period of time (FY07-12) been able to relentlessly and consistently: (a) Invest capital; (b) Turn investment into sales; (c) Turn sales into profit; (d) Turn profit into Balance Sheet strength; (e) Turn all of that into free cash flow; and (f) Invest free cash flows again. Clearly, this approach will have limited value if there is a structural break in the sector or in the company, which makes past performance a meaningless guide to future performance. (For identifying structural breaks of this sort (eg. in the Indian boilerturbine-generator sector or in the Indian utilities sector), we look to our sector leads for help.) However, to the extent that such structural breaks tend to be the exception than the rule, the greatness model helps in creating a shortlist of stocks that investors can then analyse in greater detail. Put simply, the greatness model separates the wheat from the chaff. Yet, it does not cook the whole meal for you!

- Oliver Wendell Holmes This quote appropriately captures the driving philosophy behind our greatness framework that lies at the core of our process of identifying potential tenbaggers. We had unveiled this framework on 19th January 2012 with the first iteration of the Tomorrows tenbaggers note. This framework studies a firms structural strengths by focusing not on absolutes but rather on improvements over a period of time and the consistency of those improvements. A basic sketch of the underlying process behind the making of a great firm has been recaptured in Exhibit 1 below.
Exhibit 1: The greatness framework

a. Investment (gross block)

b. Conversion of investment to sales (asset turnover, sales)

c. Pricing discipline (PBIT margin)

e. Cash generation (CFO)

Source: Ambit Capital research

d. Balance sheet discipline (D/E, cash ratio)

We rank the BSE500 universe of firms (excluding Financial Services firms and excluding firms with insufficient data) on our greatness score, which consists of six equally weighted headingsinvestments, conversion to sales, pricing discipline, balance sheet discipline, cash generation and EPS improvement, and return ratio improvement. Under each of these six headings, we further look at two kinds of improvements:

Percentage improvements in performance over FY10-12 versus FY07-09; and Consistency in performance over FY07-12 i.e. improvements adjusted for standard deviations.

A complete list of factors that are considered whilst quantifying greatness have been mentioned in Exhibit 2 on the next page.

Ambit Capital Pvt Ltd

Strategy
Exhibit 2: Factors used for quantifying greatness
Head 1 Investments Criteria a. b. 2 Conversion to sales a. b. c. d. 3 Pricing discipline a. b. 4 Balance sheet discipline a. b. c. d. Cash generation and EPS 5 a. improvement b. c. d. 6 Return ratio improvement a. b. c. d. Above median gross block increase (FY10-12 over FY07-09)* Above median gross block increase to standard deviation Improvement in asset turnover (FY10-12 over FY07-09)* Positive improvement in asset turnover adjusted for standard deviation Above median sales increase (FY10-12 over FY07-09)* Above median sales increase to standard deviation Above median PBIT margin increase (FY10-12 over FY07-09)* Above median PBIT margin increase to standard deviation Below median debt-equity decline (FY10-12 over FY07-09)* Below median debt-equity decline to standard deviation Above median cash ratio increase (FY10-12 over FY07-09)* Above median cash ratio increase to standard deviation Above median CFO increase (FY10-12 over FY07-09)* Above median CFO increase to standard deviation Above median EPS increase (FY10-12 over FY07-09)* Above median EPS increase to standard deviation Improvement in RoE (FY10-12 over FY07-09)* Positive improvement in RoE adjusted for standard deviation Improvement in RoCE (FY10-12 over FY07-09)* Positive improvement in RoCE adjusted for standard deviation

Threshold or Medians for BSE500 firms (over FY07-FY12)

66% 3.73 0.00 0.00 67% 3.11 0.06% 0.00 (0.01) (0.02) (0.01) (0.01) 68% 0.35 45% 0.83 0% 0.00 0% 0.00

Source: Ambit Capital research. * Rather than comparing one annual endpoint to another annual endpoint (say, FY07 to FY12), we prefer to average the data out over FY07- 09 and compare that to the averaged data from FY10-12. This gives a more consistent picture of performance (as opposed to simply comparing FY07 to FY12).

We rank the BSE500 universe of firms (excluding Financial Services firms) on this score to arrive at this years rankings on this measure of structural strength. After removing Financial Services firms and firms with insufficient data, 381 firms from the BSE500 were ranked based on this measure. The highlights from the distribution of these firms on our greatness score are displayed on page 6 but before we go on to that, lets check whether this framework actually delivers in the real world.

Ambit Capital Pvt Ltd

Strategy

Performance check on 2012s list

Exhibit 3: The 25 ten baggers published on 19 January 2012
Company Bloomberg Code Price (INR) 18-Jan-12 Attractive Valuations List
ICRA Mahindra Life. Castrol India Torrent Pharma. Cadila Health. Cummins India Voltas Bajaj Electrical Sadbhav Engg. Exide Inds. Tata Power Co. GSFC BHEL ICRA IN Equity MLIFE IN Equity CSTRL IN Equity TRP IN Equity CDH IN Equity KKC IN Equity VOLT IN Equity BJE IN Equity SADE IN Equity EXID IN Equity TPWR IN Equity GSFC IN Equity BHEL IN Equity 857 255 212 559 650 392 82 167 113 121 98 79 273 1,396 394 314 749 860 516 104 208 133 141 107 70 227 63 54 48 34 32 32 27 25 17 17 9 -12 -17

11-Jan-13

Performance (%)

Average (for this bucket) Moderate Valuations List

Asian Paints CMC Titan Inds. Elgi Equipment Lupin Nestle India APNT IN Equity CMC IN Equity TTAN IN Equity ELEQ IN Equity LPC IN Equity NEST IN Equity 2,724 901 184 67 433 4,038 4,299 1,331 270 94 588 4,840

25.3

58 48 47 40 36 20

Average (for this bucket) Rich Valuations List

Supreme Inds. GlaxoSmith C H L ITC CRISIL EID Parry Coromandel Inter SI IN Equity SKB IN Equity ITC IN Equity CRISIL IN Equity EID IN Equity CRIN IN Equity 183 2,475 210 923 195 273 303 3,863 273 1,015 195 262

41.3

66 56 30 10 -0 -4

Average (for this bucket) Average (overall) Sensex

Source: Bloomberg, Ambit Capital research

26.4 29.4 16,451 19,664 19.5

On average, the ten baggers highlighted by us on 19th January 2012 have clocked nearly 30% returns over the year and hence cleared the 26% threshold (which is the CAGR that a stock needs to compound at per year to be 10x in 10 years). Moreover, the beginning of period valuations has not made much difference to returns as seen from the performance of the three valuation buckets. Even more interestingly, even in a year of upswing for Indian equities (Sensex up 19.5% over the past 12 months), this basket with an average beta of only 0.72 has beaten the Index by 10% points, reinforcing our faith in the framework.

Ambit Capital Pvt Ltd

Strategy

Quantifying greatness
From the universe of BSE500 firms, after removing Financial Services firms and firms with insufficient data, 381 firms were scored on the six headings highlighted on the previous page. The cut-off for greatness was placed at 67%* and only 77 firms (20% of the total population of 381 firms) could manage a score above this cut-off.
Exhibit 4: Distribution of firms on the greatness score (total population: 381 firms)
Zone of mediocrity 60 211 firms score < 50% Good, not Great 93 firms (between 50% and 67%) Zone of greatness Only 77 firms score > 67%

*The greatness score is calculated by assigning equal weightages to the six factors outlined in Exhibit 2 on page 4. Thus, each of these six factors carries a weightage of 16.7%. The scoring on sub-criteria within each of these factors is binary, with a firm getting either 1 or 0 based on whether it has done better than the respective threshold or not. These scores are then cumulated to arrive at a final greatness score on 100 for the firm.

50 No. of firms 40 30 20 10 0 0%-10% 10%-20% 20%-30% 30%-40% 40%-50%

50%-60%

60%-70%

70%-80%

80%-90%

90%-100%

Greatness Score

Source: Ambit Capital research

In the next exhibit, we present key financial data on the three zones defined above Mediocrity (211 firms), Good but not great (93 firms), and Great (77 firms) based on their degrees of greatness.
Exhibit 5: Zones of greatness - Financial summary
Mediocre Number of firms Mcap (US$ mn) Share price (3-year CAGR) Gross block (3-year CAGR) Sales (3-year CAGR) EPS (3-year CAGR) CFO (3-year CAGR) PBIT Margin (3-year average) RoE (3-year average) RoCE (3-year average) Net debt equity Trailing 12 month P/E Trailing 12 month P/B Trailing 12 month EV/EBITDA 211 509 -9% 15% 13% 1% 3% 14% 13% 14% 0.7 18.5 1.6 9.4 Good but not great 93 590 7% 18% 20% 20% 11% 17% 19% 19% 0.2 18.7 2.7 9.7 Great 77 795 23% 16% 22% 32% 24% 17% 26% 27% 0.2 17.2 4.4 9.4

Source: Ambit Capital research, Capitaline; Note: All figures are based on median values of the firms analysed.

With regard to fundamentals, the superiority of the great firms compared with the other two groups is evident in Exhibit 5. Inspite of that, on P/E and EV/EBITDA, the great firms trade in line with the rest of the market. However, on P/B, the great firms command a hefty premium to the rest of the market. Of these 77 great firms, we identify the ones that perform the best on our accounting and corporate governance filters, and this gives us our final list of 30 great companies. We present these 30 potential ten baggers in the next section.

Ambit Capital Pvt Ltd

Strategy

2013s ten-bagger list

From the 77 firms that cleared more than two-thirds of our cut-offs, we reached a shortlist of 30 firms, after following a process of elimination as outlined below:

28 firms were removed by our accounting filter (for a full exposition of our accounting filter, please refer to our 4th Jan 2013 note which explains how our forensic accounting model works); 2 firms were removed for not meeting ADV requirement of US$0.2mn; and 17 firms were removed on suspect corporate governance or structural issues with the underlying business.

After identifying the 30 great firms that exhibit the ingredients required to be tomorrows winners, we run a valuation check to ascertain if they are currently trading at reasonable prices for outright investments. In our view, whilst valuations do matter on a tactical basis, how the underlying fundamentals evolve for the firm over long periods plays a more important role in determining returns than the beginning of the period valuation itself. We discuss this point in detail in the final section of this note. Here, we categorise these stocks into three buckets based on their relative attractiveness on valuations with respect to their own history. We compare these firms with respect to their five-year average valuations on three metricsP/B, P/E and EV/EBITDA. We find 8 firms to be inexpensive (on at least two of the three metrics): Carborundum, Torrent Power, Sadbhav Engineering, Mahindra Life, Exide, Redington, Titan and Jagaran Prakashan. However, for the long term all thirty stocks remain candidates to be ten baggers from our perspective (as we show in the note, todays valuations do not have a significant effect on long term returns!). We have bottom-up coverage with BUYs on Redington, Sadbhav, Torrent Power, Oberoi Realty, Asian Paints, Balkrishna Industries, Cadila Healthcare, Eicher Motors, Cummins India and TTK Prestige. We should also point out that 3 months ago, in our bottom-up coverage, we turned SELLers on Exide Industries. Whilst we continue to be admirers of the firms franchise, our SELL was driven by managements reluctance in CY12 to host postresults conference calls and its inability to offer convincing explanations for its recent weak results when our Auto analyst, Ashvin Shetty, did speak to them bilaterally.

Ambit Capital Pvt Ltd

Strategy
Exhibit 6: Ten baggers - Valuation perspective
Trailing valuations Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Ticker Attractive Valuations* CU IN Equity EXID IN Equity JAGP IN Equity MLIFE IN Equity REDI IN Equity SADE IN Equity TPW IN Equity TTAN IN Equity Moderate Valuations** BATA IN Equity NEST IN Equity OBER IN Equity PSYS IN Equity SHOP IN Equity WHIRL IN Equity Rich Valuations*** APNT IN Equity BIL IN Equity BYRCS IN Equity CDH IN Equity CRISIL IN Equity EIM IN Equity ELEQ IN Equity IPCA IN Equity ITC IN Equity KJC IN Equity KKC IN Equity LPC IN Equity SI IN Equity SKB IN Equity TRP IN Equity TTKPT IN Equity Asian Paints Balkrishna Inds Bayer Crop Sci. Cadila Health. CRISIL Eicher Motors Elgi Equipment Ipca Labs. ITC Kajaria Ceramics Cummins India Lupin Supreme Inds. GlaxoSmith C H L Torrent Pharma TTK Prestige 7,659 533 891 3,248 1,325 1,387 281 1,156 40,518 315 2,640 4,791 717 2,978 1,160 749 39.3 9.8 21.9 25.8 33.6 23.6 23.8 20.0 32.1 18.7 22.9 26.3 15.2 41.4 19.1 32.8 13.8 2.3 5.6 6.3 18.8 4.7 3.7 4.6 10.7 5.5 6.2 5.9 5.0 13.0 4.7 11.1 24.9 7.4 14.6 16.4 21.7 12.1 13.0 12.1 21.2 8.4 21.2 15.1 8.2 26.6 11.3 20.7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bata India Nestle India Oberoi Realty Persistent Sys Shoppers Stop Whirlpool India 1,029 8,573 1,704 385 670 643 27.3 49.5 18.0 12.8 78.4 25.2 9.2 32.6 2.3 2.3 5.5 6.3 19.6 26.8 13.2 6.3 31.5 12.6 1 0 0 0 1 0 0 1 1 0 0 1 0 0 0 1 0 0 1 1 1 1 1 1 Carborundum Uni. Exide Inds. Jagran Prakashan Mahindra Life. Redington India Sadbhav Engg. Torrent Power Titan Inds. 504 2,236 659 303 635 373 1,553 4,338 14.4 24.1 18.3 13.4 11.1 23.2 9.7 35.9 2.7 4.3 4.4 1.4 2.4 1.7 1.4 14.2 9.6 13.6 12.4 10.5 8.2 11.7 8.0 24.8 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 1 1 1 1 0 2 2 2 3 3 3 3 2 Company MCap (US$ mn) P/E P/B EV/EBITDA Cheap w.r.t history? 1 for "yes") P/E P/B EV/EBITDA Overall, cheap on how many counts?

Source: Bloomberg, Capitaline, Ambit Capital research. * Trading below five-year average P/E, P/B, EV/EBITDA (on at least 2 of these 3 measures) ** Trading below either five-year average P/E, five-year P/B or five-year EV/EBITDA (on one of these three measures) *** Trading above five-year average P/E, P/B and EV/EBITDA

Ambit Capital Pvt Ltd

Strategy
Exhibit 7: Ten baggers - Financial snapshot
Sr. Bloom No. ticker Company Sector Gross Net PBIT Mcap 3-yr EPS (3- CFO (3- RoE(3- RoCE (33M ADV Block Sales margin (US$ price year year year year (US$ mn) (3-year (3-year (3-year mn) CAGR CAGR) CAGR) avg) avg) CAGR) CAGR) avg) Net Debt FY14 FY14 Equity P/E P/B (FY12)

Attractive Valuations* 1 CU IN 2 EXID IN 3 JAGP IN 4 MLIFE IN 5 REDI IN 6 SADE IN 7 TPW IN 8 TTAN IN Carborundum Uni. Exide Inds. Jagran Prakashan Mahindra Life. Industrials Auto Anc Media Realty 504 2,236 659 303 635 373 1,553 4,338 0.4 5.1 0.3 0.5 0.5 0.3 21% 8% -6% 5% 12% 3% 8% 12% 36% 10% 72% 29% 29% 10% 22% 12% 18% 27% 19% 38% 23% 31% 28% 30% 23% 22% 22% 35% 46% 54% 62% 6% 24% 19% 120% 95% 34% -1% 22% 26% 28% 9% 20% 12% 24% 46% 24% 40% 32% 11% 18% 12% 21% 61% 16.3 16.4 24.7 30.2 2.7 13.5 25.7 8.9 0.3 -0.3 0.5 0.3 1.2 2.8 0.8 -0.7 12.4 17.2 15.4 10.9 8.6 22.3 9.9 26.1 2.2 3.5 3.7 1.2 1.7 1.5 1.2 9.3

Redington India IT Sadbhav Engg. Infrastructure Torrent Power Titan Inds. Utilities Retail

0.9 -15% 9.2 53%

Moderate Valuations** 9 BATA IN 10 NEST IN 11 OBER IN 12 PSYS IN 13 SHOP IN Bata India Nestle India Oberoi Realty Persistent Sys Shoppers St. Retail FMCG Realty IT Retail 1,029 8,573 1,704 385 670 643 4.2 2.4 0.5 1.3 1.5 0.7 65% 25% 9% 10% 33% 27% 12% 22% 54% 21% 30% 7% 16% 20% 25% 19% 29% 16% 65% 24% 22% 24% 42% 20% -17% 25% 38% 141% 23% 23% 11% 53% 11.5 17.9 65.4 19.9 3.3 7.1 -0.2 0.5 -0.3 -0.4 0.9 -0.2 25.6 36.8 10.0 10.0 76.7 17.1 6.9 22.3 1.8 1.7 6.9 4.1

18% 110% 39% 27% -140% 5% 20% 20% 10% 38%

Consumer 14 WHIRL IN Whirlpool India Durable Rich Valuations*** 15 APNT IN 16 BIL IN Asian Paints FMCG

7,659 533 891 3,248 1,325 1,387 281 1,156 40,518 315 2,640 4,791 717 2,978 1,160 749

5.3 0.6 0.5 2.1 0.7 1.4 0.2 2.4 30.6 0.4 1.8 8.6 0.2 2.3 1.0

35% 41% 33% 25% 31% 64% 27% 35% 31% 63% 20% 28% 58% 41% 23%

12% 18% 2% 21% 21% 13% 15% 20% 10% 16% 12% 25% 11% 6% 18% 39%

21% 30% 18% 23% 16% 49% 22% 22% 17% 25% 5% 23% 21% 20% 19% 40%

36% 54% 14% 28% 15% 58% 14% 41% 21% 108% 8% 17% 39% 23% 15% 73%

27% -36% 46% 32% 16% 184% 14% 22% 20% 53% 24% 6% 16% 42% 25% 13%

45% 30% 24% 34% 43% 15% 26% 26% 32% 28% 31% 29% 40% 31% 30% 49%

61% 25% 32% 27% 57% 31% 39% 25% 47% 26% 43% 26% 36% 48% 27% 69%

15.4 16.9 11.0 18.9 35.2 8.8 12.6 18.4 23.8 12.0 19.3 17.7 12.8 18.5 17.9 15.6

-0.2 1.2 -0.5 0.7 -0.6 -1.1 -0.4 0.5 -0.4 1.0 -0.4 0.3 0.5 -0.9 -0.1 0.1

30.0 7.4 20.4 18.9 25.6 17.9 16.3 13.9 24.6 12.1 19.8 18.5 11.3 31.7 13.6 24.2

10.1 1.6 4.2 4.7 15.9 3.5 3.0 3.3 9.0 3.7 5.4 4.3 3.4 9.7 3.4 7.6

Balkrishna Inds Auto Anc

17 BYRCS IN Bayer Crop Sci. Fertilisers 18 CDH IN 19 CRISIL IN 20 EIM IN 21 ELEQ IN 22 IPCA IN 23 ITC IN 24 KJC IN 25 KKC IN 26 LPC IN 27 SI IN 28 SKB IN 29 TRP IN 30 TTKPT IN Cadila Health. CRISIL Eicher Motors Pharma Miscellaneous Auto

Elgi Equipment Capital Goods Ipca Labs. ITC Kajaria Ceramics Pharma FMCG Miscellaneous

Cummins India Capital Goods Lupin Supreme Inds. Pharma Industrials

GlaxoSmith CHL FMCG Torrent Pharma. Pharma TTK Prestige Consumer Durable

5.5 102%

Source: Bloomberg, Capitaline, Ambit Capital research.

Ambit Capital Pvt Ltd

Strategy
Exhibit 8: Ten baggers - Forward-looking data using consensus estimates
Sr. No. Ticker 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 CU IN Equity EXID IN Equity JAGP IN Equity MLIFE IN Equity REDI IN Equity SADE IN Equity TPW IN Equity TTAN IN Equity BATA IN Equity NEST IN Equity OBER IN Equity PSYS IN Equity SHOP IN Equity WHIRL IN Equity APNT IN Equity BIL IN Equity BYRCS IN Equity CDH IN Equity CRISIL IN Equity EIM IN Equity ELEQ IN Equity IPCA IN Equity ITC IN Equity KJC IN Equity KKC IN Equity LPC IN Equity SI IN Equity SKB IN Equity TRP IN Equity TTKPT IN Equity Company Carborundum Uni. Exide Inds. Jagran Prakashan Mahindra Life. Redington India Sadbhav Engg. Torrent Power Titan Inds. Bata India Nestle India Oberoi Realty Persistent Sys Shoppers Stop Whirlpool India Asian Paints Balkrishna Inds. Bayer Crop Sci. Cadila Health. CRISIL Eicher Motors Elgi Equipment Ipca Labs. ITC Kajaria Ceramics Cummins India Lupin Supreme Inds. GlaxoSmith C H L Torrent Pharma TTK Prestige Mcap (US$ mn) 504 2,236 659 303 635 373 1,553 4,338 1,029 8,573 1,704 385 670 643 7,659 533 891 3,248 1,325 1,387 281 1,156 40,518 315 2,640 4,791 717 2,978 1,160 749 3-month ADV (US$ mn) 0.4 5.1 0.3 0.5 0.5 0.3 0.9 9.2 4.2 2.4 0.5 1.3 1.5 0.7 5.3 0.6 0.5 2.1 0.7 1.4 0.2 2.4 30.6 0.4 1.8 8.6 0.2 2.3 1.0 5.5 Next 3 years estimated EPS CAGR (%) 9% 28% 14% 17% 20% 9% 5% 24% 29% 21% 39% 17% 80% 21% 20% 21% 31% 21% 11% 19% 21% 26% 19% 32% 12% 23% 21% 20% 25% 25% Next 3 years estimated BVPS CAGR (%) 17% 16% 12% 11% 23% 8% 12% 31% 25% 25% 18% 20% 9% 29% 23% 27% 20% 22% 25% 16% 15% 24% 14% 28% 7% 23% 26% 19% 24% 36%

Source: Ambit Capital research, Bloomberg

Ambit Capital Pvt Ltd

10

Strategy
Exhibit 9: Tenbaggers - Business activity description
Sr. Ticker no. 1 CU IN Equity Company Carborundum Uni. Business Description Carborundum Universal manufactures refractories and electromineral grains. The company produces coated and bonded abrasives, super refractories, aluminum oxide grains, calcined bauxite, electrocast refractories, silicon carbide grains, and industrial ceramic products. Exide Industries manufactures a wide range of lead and electric storage batteries. The company's makes batteries for automobiles, railways, aircrafts, power stations, telephone exchanges, and other uses. Jagran Prakashan publishes a daily newspaper. The company publishes and distributes Dainik Jagran. Mahindra Lifespace Developers specialises in the construction and operation of commercial and residential property complexes, projects management services and business centres. Redington (India) is a supply chain solution provider. The company distributes information technology (IT) products and mobile handsets and accessories and provides logistics, supply chain management and other support services. Sadbhav Engineering provides construction services, with a focus on irrigation, roads and highways, and mining operations. The company constructs earthen dams and canals, rehabilitates and upgrades roads, and excavates overburden of mineral properties. Torrent Power generates, transmits and distributes power. The company also implements large power projects in India. Titan Industries manufactures and retails jewellery and watches. The company produces quartz analogue electronic watches, watch movements, step motors, and watch cases. Titan Industries serves customers across the United States. Bata India manufactures a wide range of leather, rubber/canvas and plastic footwear products. The company also manufactures sports apparel and leather accessories. Bata India sells its products through its chain of company owned retail stores in India, as well as to businesses in the US, United Kingdom, Europe, the Middle East and the Far East. Nestle India manufactures branded milk products and other food products. The company's products include Everyday dairy whitener, milk powder and ghee, Milkmaid sweetened condensed milk and Cerelac weaning foods. Nestle's beverages include Nescafe and Sunrise coffee and Nesfit enriched glucose powder. Nestle also manufactures Maggi noodles, soups and sauces. Oberoi Realty is a real estate development company operating in Mumbai and focused on premium developments. The company's main focus is residential projects but they also have a diversified portfolio of projects covering segments of the real estate market, which target the upper end of the respective income or market segment. Persistent Systems offers outsourced software product development. The company offer services that include testing, support, and professional services. Shoppers Stop operates a chain of retail shops. The company retails men's, women's, and children's clothing, cosmetics and skin and hair-care products, home appliances, housewares, linens, luggage, jewellery, and accessories. Whirlpool of India manufactures appliances. The company produces refrigerators, washing machines, air conditioners, microwave ovens, water purifiers, built-in appliances and other products. Asian Paints manufactures a wide range of decorative paints, varnishes, enamels, and black & synthetic resins. The company, through its subsidiaries, also manufactures specialty industrial chemicals and vinyl pyridine latex products, which are used in the manufacture of rubber tyres. Balkrishna Industries manufactures automobile tyres and tubes. The company also manufactures different varieties of paper & paper boards and processes synthetic textiles. Bayer Cropscience is involved in the area of crop protection, non-agricultural pest-control, seed and plant biotechnology. Cadila Healthcare manufactures and markets healthcare solutions ranging from formulations, active pharmaceutical ingredients, vaccines, diagnostics, health and dietetic foods, animal healthcare to cosmeceuticals. The company's products are available in the form of tablets, capsules, injections, liquids, dry syrups, powders, granules, and ointments. Crisil operates a credit rating agency in India. The company specialises in the areas of risk identification, classification and assessment, across a broad spectrum of industries. Eicher Motors manufactures light commercial vehicles, which are sold domestically and are also exported to other countries. Eicher Motors also manufactures tractors, two-wheelers and automotive gears.

EXID IN Equity

Exide Inds.

3 4

JAGP IN Equity

Jagran Prakashan

MLIFE IN Equity Mahindra Life.

REDI IN Equity

Redington India

SADE IN Equity Sadbhav Engg.

TPW IN Equity

Torrent Power

TTAN IN Equity Titan Inds.

BATA IN Equity

Bata India

10

NEST IN Equity

Nestle India

11

OBER IN Equity Oberoi Realty

12

PSYS IN Equity

Persistent Sys

13

SHOP IN Equity Shoppers St.

14

WHIRL IN Equity Whirlpool India

15

APNT IN Equity Asian Paints

16 17

BIL IN Equity

Balkrishna Inds

BYRCS IN Equity Bayer Crop Sci.

18

CDH IN Equity

Cadila Health.

19

CRISIL IN Equity CRISIL

20

EIM IN Equity

Eicher Motors

Ambit Capital Pvt Ltd

11

Strategy

Sr. Ticker no.

Company

Business Description Elgi Equipments manufactures reciprocating and screw-type air compressors, diesel engines, generators and pumps, garage equipment, auto products, and heat pressure cleaners. Elgi markets a range of wheel balancers, oil suction units, AC recovery plants, mobile service units, and pasteuriser and bottle washers. The company operates in India and markets its products globally. Ipca Laboratories operates a pharmaceutical company, which distributes products to more than 75 countries worldwide. The Group's products include finished dosage forms, drug delivery systems, bulk drugs and intermediates. ITC has a diversified presence in cigarettes, hotels, paperboards & specialty papers, packaging, agri business, packaged foods & confectionery, branded apparel, greeting cards, and other FMCG products. Kajaria Ceramics manufactures glazed and unglazed ceramic tiles. The company sells its products in India and also exports them to other countries. Cummins India manufactures internal combustion engines, including diesel, reciprocating piston, gas turbine and gasoline engines. The company also manufactures power generation sets and public transport-type passenger motor vehicles, including luxury coaches and airfield buses. In addition, Cummins India operates a computerised and fully-equipped research and development facility. Lupin manufactures bulk actives and formulations. Its principal bulk actives manufactured include Rifampicin, Pyrazinamide, Ethambutol (anti-TB), Cephalosporins (anti-infectives) and cardiovasculars. The company also possesses competencies in phytomedicines, in which medicines are made out of plant and herbal resources supported by the discipline of modern medicine. Supreme Industries manufactures industrial and engineered moulded products and storage and material handling crates. The company also manufactures chemicals, multi-layer sheets, multi-layer films, packaging films and expanded polyethylene foam, PVC pipes and fittings, moulded furniture, and disposable EPS containers.

21

ELEQ IN Equity

Elgi Equipment

22

IPCA IN Equity

Ipca Labs.

23

ITC IN Equity

ITC

24

KJC IN Equity

Kajaria Ceramics

25

KKC IN Equity

Cummins India

26

LPC IN Equity

Lupin

27

SI IN Equity

Supreme Inds.

28

SKB IN Equity

Glaxo SmithKline Consumer Healthcare manufactures and sells malted milk food products. The GlaxoSmith C H L Group's products, which include energy & protein products, cereals, baby foods, and ghee & butter, are sold under the brand names Horlicks, Boost, Viva, Brylcream, Eno, Maltova and Gopika. Torrent Pharmaceuticals manufactures bulk drugs and pharmaceutical formulations. The company's formulations include cardiovascular, psychotropic and antibiotic drugs whilst its bulk drugs include atenolol, ciprofloxacin and norfloxacin. Torrent Pharmaceuticals has wholly owned subsidiaries in several regulated and less-regulated international markets. TTK Prestige manufactures a range of domestic appliances. The Group's products include pressure cookers and non-stick cookware, stainless steel and glass vacuum flasks, and gas stoves.

29

TRP IN Equity

Torrent Pharma

30

TTKPT IN Equity TTK Prestige

Source: Bloomberg

Ambit Capital Pvt Ltd

12

Strategy

Valuations - A long-term perspective!

We have published research over the past few months, indicating how value and growth as investment styles take turns in dominating investors preference at any point in time (see our note dated 11th October 2012 The return of value investing). Clearly, from a tactical standpoint valuations do play an important role in shaping short-term returns. However, how underlying fundamentals evolve for the firm over long periods plays a more important role in determining returns than the beginning of the period valuation itself. This point can be understood better with the following exhibits that plot ten-year returns over FY02-12 versus FY02 valuations as measured by P/B and P/E at the beginning of the period (in 2002).
Exhibit 10: Valuation impact on long-term returns - P/B
60% 40% FY02-FY12 returns 20% 0% -20% -40% -60% -80% FY02 Price to Book R2 = 0.000

5.0

10.0

15.0

20.0

25.0

Source: Ambit Capital research, FY02 FY12 returns here are stock returns relative to Sensex

The value of R-square makes the story self-explanatory. A zero for this value indicates that the beginning of period valuations do not play any meaningful role in explaining stock returns over the next ten years. This holds true for both P/B and P/E as the measures of valuation.
Exhibit 11: Valuation impact on long-term returns - P/E
60% 40% FY02-FY12 returns 20% 0% -20% -40% -60% -80% FY02 Price to Earnings R2 = 0.001

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Source: Ambit Capital research, FY02 FY12 returns here are stock returns relative to Sensex

In our note The return of value investing (dated 11th October 2012), we had explained why we expect value stocks to do well over the next few quarters. Hence, from this list of Great 30 stocks, we would expect the most attractively priced bucket to do better over the immediate term. However, the two exhibits above clearly suggest that from a long-term perspective each of these stocks stand a fair chance of being a ten bagger. Indeed, as mentioned on page 5, our 2012 ten baggers did not have any correlation between the returns generated over the past 12 months and the beginning of period valuations.

Ambit Capital Pvt Ltd

13

Strategy

Appendix - Greatness framework on smaller caps

Last year some of our clients suggested running the greatness framework on smaller firms outside of the BSE500 as well. We present below a list of select small caps from outside the BSE500 but above INR 5,000 mn market cap (including the two firms that fail our liquidity constraints in the main list) that fare well on our greatness framework. However, since our forensic accounting model has been built only for the BSE500 universe, the list below has not been filtered for suspect accounting or suspect corporate governance.
Exhibit 12: Greatness framework on smaller caps outside BSE500 (without filtering for suspect accounting or corporate governance)
Sr. No. Ticker 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 VO IN HMVL IN MUNI IN ICSL IN CLRC IN PI IN HAWK IN ZENT IN AJP IN GDYR IN SWE IN CRS IN SEQ IN KEKC IN SRL IN STAL IN FMGI IN Company Vinati Organics Hindustan Media Mayur Uniquote Infinite Comp Clariant Chemical P I Inds. Hawkins Cookers Zensar Tech. Ajanta Pharma Goodyear India Swaraj Engines Cera Sanitary. Sequent Scien. Kewal Kir.Cloth. Speciality Rest. Styrolution ABS Federal-Mogul Mcap 3-month ADV (US$ mn) (US$ mn) 139 202 97 104 302 295 232 220 173 142 116 102 95 164 156 236 203 0.1 0.0 0.1 0.3 0.1 0.2 0.1 0.2 0.2 0.1 0.2 0.2 0.1 0.0 0.6 0.1 0.0 FY13 P/E (est) 10.4 13.7 12.8 4.1 NA 15.0 55.2 6.4 9.4 14.0 11.0 13.6 NA 16.7 NA 20.4 28.2* FY13 P/B (est) 3.0 2.1 4.3 0.9 NA 4.0 22.2 1.5 2.4 2.2 2.8 3.1 NA 3.5 NA 3.0 2.6*

Source: Ambit Capital research

Ambit Capital Pvt Ltd

14

Strategy

Institutional Equities Team

Saurabh Mukherjea, CFA Head of Equities Research Analysts Aadesh Mehta Achint Bhagat Ankur Rudra, CFA Ashvin Shetty Bhargav Buddhadev Chhavi Agarwal Dayanand Mittal Gaurav Mehta Harshit Vaid Jatin Kotian Karan Khanna Krishnan ASV Nitin Bhasin Nitin Jain Pankaj Agarwal, CFA Pratik Singhania Parita Ashar Rakshit Ranjan, CFA Ritika Mankar Mukherjee Ritu Modi Shariq Merchant Utsav Mehta Sales Name Deepak Sawhney Dharmen Shah Dipti Mehta Parees Purohit, CFA Pramod Gubbi, CFA Sarojini Ramachandran Production Sajid Merchant Joel Pereira Production Editor (022) 30433247 (022) 30433284 sajidmerchant@ambitcapital.com joelpereira@ambitcapital.com Regions India / Asia India / Asia India / Europe / USA USA India / Asia UK / USA Desk-Phone (022) 30433295 (022) 30433289 (022) 30433053 (022) 30433169 (022) 30433228 +44 (0) 20 7614 8374 E-mail deepaksawhney@ambitcapital.com dharmenshah@ambitcapital.com diptimehta@ambitcapital.com pareespurohit@ambitcapital.com pramodgubbi@ambitcapital.com sarojini@panmure.com Industry Sectors Banking / NBFCs Cement Technology / Telecom / Media Automobile Power / Capital Goods Construction / Infrastructure Oil & Gas Strategy / Derivatives Research Power / Capital Goods Metals & Mining / Healthcare Strategy / Derivatives Research Banking Construction / Infrastructure / Cement Technology NBFCs Real Estate / Retail Metals & Mining / Telecom Consumer / Real Estate Economy / Strategy Cement / Infrastructure / Healthcare Consumer Telecom / Media Desk-Phone (022) 30433239 (022) 30433178 (022) 30433211 (022) 30433285 (022) 30433252 (022) 30433203 (022) 30433202 (022) 30433255 (022) 30433259 (022) 30433261 (022) 30433251 (022) 30433205 (022) 30433241 (022) 30433291 (022) 30433206 (022) 30433264 (022) 30433223 (022) 30433201 (022) 30433175 (022) 30433292 (022) 30433246 (022) 30433209 E-mail aadeshmehta@ambitcapital.com achintbhagat@ambitcapital.com ankurrudra@ambitcapital.com ashvinshetty@ambitcapital.com bhargavbuddhadev@ambitcapital.com chhaviagarwal@ambitcapital.com dayanandmittal@ambitcapital.com gauravmehta@ambitcapital.com harshitvaid@ambitcapital.com jatinkotian@ambitcapital.com karankhanna@ambitcapital.com vkrishnan@ambitcapital.com nitinbhasin@ambitcapital.com nitinjain@ambitcapital.com pankajagarwal@ambitcapital.com pratiksinghania@ambitcapital.com paritaashar@ambitcapital.com rakshitranjan@ambitcapital.com ritikamankar@ambitcapital.com ritumodi@ambitcapital.com shariqmerchant@ambitcapital.com utsavmehta@ambitcapital.com (022) 30433174 saurabhmukherjea@ambitcapital.com

Ambit Capital Pvt Ltd

15

Strategy

Explanation of Investment Rating

Investment Rating Expected return (over 12-month period from date of initial rating) >5% <5%

Buy Sell
Disclaimer

This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Ambit Capital. AMBIT Capital Research is disseminated and available primarily electronically, and, in some cases, in printed form.

Additional information on recommended securities is available on request.

Disclaimer 1. AMBIT Capital Private Limited (AMBIT Capital) and its affiliates are a full service, integrated investment banking, investment advisory and brokerage group. AMBIT Capital is a Stock Broker, Portfolio Manager and Depository Participant registered with Securities and Exchange Board of India Limited (SEBI) and is regulated by SEBI 2. The recommendations, opinions and views contained in this Research Report reflect the views of the research analyst named on the Research Report and are based upon publicly available information and rates of taxation at the time of publication, which are subject to change from time to time without any prior notice. 3. AMBIT Capital makes best endeavours to ensure that the research analyst(s) use current, reliable, comprehensive information and obtain such information from sources which the analyst(s) believes to be reliable. However, such information has not been independently verified by AMBIT Capital and/or the analyst(s) and no representation or warranty, express or implied, is made as to the accuracy or completeness of any information obtained from third parties. The information or opinions are provided as at the date of this Research Report and are subject to change without notice. 4. If you are dissatisfied with the contents of this complimentary Research Report or with the terms of this Disclaimer, your sole and exclusive remedy is to stop using this Research Report and AMBIT Capital shall not be responsible and/ or liable in any manner. 5. If this Research Report is received by any client of AMBIT Capital or its affiliate, the relationship of AMBIT Capital/its affiliate with such client will continue to be governed by the terms and conditions in place between AMBIT Capital/ such affiliate and the client. 6. This Research Report is issued for information only and should not be construed as an investment advice to any recipient to acquire, subscribe, purchase, sell, dispose of, retain any securities. Recipients should consider this Research Report as only a single factor in making any investment decisions. This Research Report is not an offer to sell or the solicitation of an offer to purchase or subscribe for any investment or as an official endorsement of any investment. 7. If 'Buy', 'Sell', or 'Hold' recommendation is made in this Research Report such recommendation or view or opinion expressed on investments in this Research Report is not intended to constitute investment advice and should not be intended or treated as a substitute for necessary review or validation or any professional advice. The views expressed in this Research Report are those of the research analyst which are subject to change and do not represent to be an authority on the subject. AMBIT Capital may or may not subscribe to any and/ or all the views expressed herein. 8. AMBIT Capital makes no guarantee, representation or warranty, express or implied; and accepts no responsibility or liability as to the accuracy or completeness or currentess of the information in this Research Report. AMBIT Capital or its affiliates do not accept any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of this Research Report. 9. Past performance is not necessarily a guide to evaluate future performance. 10. AMBIT Capital and/or its affiliates (as principal or on behalf of its/their clients) and their respective officers directors and employees may hold positions in any securities mentioned in this Research Report (or in any related investment) and may from time to time add to or dispose of any such securities (or investment). Such positions in securities may be contrary to or inconsistent with this Research Report. 11. This Research Report should be read and relied upon at the sole discretion and risk of the recipient. 12. The value of any investment made at your discretion based on this Research Report or income therefrom may be affected by changes in economic, financial and/ or political factors and may go down as well as up and you may not get back the full or the expected amount invested. Some securities and/ or investments involve substantial risk and are not suitable for all investors. 13. This Research Report is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied in whole or in part, for any purpose. Neither this Research Report nor any copy of it may be taken or transmitted or distributed, directly or indirectly within India or into any other country including United States (to US Persons), Canada or Japan or to any resident thereof. The distribution of this Research Report in other jurisdictions may be strictly restricted and/ or prohibited by law or contract, and persons into whose possession this Research Report comes should inform themselves about such restriction and/ or prohibition, and observe any such restrictions and/ or prohibition. 14. Neither AMBIT Capital nor its affiliates or their respective directors, employees, agents or representatives, shall be responsible or liable in any manner, directly or indirectly, for views or opinions expressed in this Report or the contents or any errors or discrepancies herein or for any decisions or actions taken in reliance on the Report or inability to use or access our service or this Research Report or for any loss or damages whether direct or indirect, incidental, special or consequential including without limitation loss of revenue or profits that may arise from or in connection with the use of or reliance on this Research Report or inability to use or access our service or this Research Report. Conflict of Interests 15. In the normal course of AMBIT Capitals business circumstances may arise that could result in the interests of AMBIT Capital conflicting with the interests of clients or one clients interests conflicting with the interest of another client. AMBIT Capital makes best efforts to ensure that conflicts are identified and managed and that clients interests are protected. AMBIT Capital has policies and procedures in place to control the flow and use of non-public, price sensitive information and employees personal account trading. Where appropriate and reasonably achievable, AMBIT Capital segregates the activities of staff working in areas where conflicts of interest may arise. However, clients/potential clients of AMBIT Capital should be aware of these possible conflicts of interests and should make informed decisions in relation to AMBIT Capitals services. 16. AMBIT Capital and/or its affiliates may from time to time have investment banking, investment advisory and other business relationships with companies covered in this Research Report and may receive compensation for the same. Research analysts provide important inputs into AMBIT Capitals investment banking and other business selection processes. 17. AMBIT Capital and/or its affiliates may seek investment banking or other businesses from the companies covered in this Research Report and research analysts involved in preparing this Research Report may participate in the solicitation of such business. 18. In addition to the foregoing, the companies covered in this Research Report may be clients of AMBIT Capital where AMBIT Capital may be required, inter alia, to prepare and publish research reports covering such companies and AMBIT Capital may receive compensation from such companies in relation to such services. However, the views reflected in this Research Report are objective views, independent of AMBIT Capitals relationship with such company. 19. In addition, AMBIT Capital may also act as a market maker or risk arbitrator or liquidity provider or may have assumed an underwriting commitment in the securities of companies covered in this Research Report (or in related investments) and may also be represented in the supervisory board or on any other committee of those companies. Additional Disclaimer for U.S. Persons 20. The research report is solely a product of AMBIT Capital 21. AMBIT Capital is the employer of the research analyst(s) who has prepared the research report 22. Any subsequent transactions in securities discussed in the research reports should be effected through J.P.P. Euro-Securities, Inc. (JPP). 23. JPP does not accept or receive any compensation of any kind for the dissemination of the AMBIT Capital research reports. 24. The research analyst(s) preparing the research report is resident outside the United States and is/are not associated persons of any U.S. regulated broker-dealer and that therefore the analyst(s) is/are not subject to supervision by a U.S. broker-dealer, and is/are not required to satisfy the regulatory licensing requirements of FINRA or required to otherwise comply with U.S. rules or regulations regarding, among other things, communications with a subject company, public appearances and trading securities held by a research analyst account.

Copyright 2013 AMBIT Capital Private Limited. All rights reserved.

Ambit Capital Pvt Ltd

Ambit Capital Pvt. Ltd. Ambit House, 3rd Floor 449, Senapati Bapat Marg, Lower Parel, Mumbai 400 013, India. Phone: +91-22-3043 3000 16 Fax: +91-22-3043 3100