Bonus Candidates

October 12, 2010

Companies with a fair level of positive accumulated reserves and continuing profitability are more likely to issue bonus
shares. Bonus shares do not carry any cost for shareholders and are a means used by company management to reward
the investors. Issue of bonus shares is dependent on the management policy as well as statutory rules governing the
bonus issue. Most significant of all the rules for issuing bonus shares is that the shares should be issued from the free
reserves of the company. We have compiled an indicative list of companies that could issue bonus shares in future. We
have selected companies that have strong free reserves to equity ratio, increasing profits for the last two years and whose
latest quarter net profit are more than 25% of the last financial year’s net profit with a promoter holding in excess of 40%.

Reserve Latest
Reserves Excluding Previous quarter
Last Equity to Total Reval Net Net Qtr Net NP to
Bonus Capital Equity Debt (Rs Reserve Profit Previous Profit (Rs Profit FY NP Promoter
Co_Name year (Rs Cr) (Times) # Year End Cr) (Rs Cr) (Rs Cr) Year End Cr) Qtr End (Rs Cr) (%) Hold%
Patni Computer - 26.19 120.85 200912 0.9 3165.9 542.7 200812 389.2 201006 153.0 28.19 46.3
Mah. Seamless - 35.27 40.54 201003 80.1 1510.0 284.6 200903 257.8 201006 100.5 35.3 53.9
Cummins India 1994 39.6 38.20 201003 8.6 1521.4 443.9 200903 433.7 201006 140.2 31.59 51.0
3M India - 11.27 38.09 201003 0.0 429.3 92.8 200812 57.5 201006 31.9 34.31 76.0
Novartis India 1990 15.98 36.12 201003 0.3 577.5 116.0 200903 103.7 201006 31.5 27.18 76.4
Texmaco - 12.72 32.01 201003 122.6 529.8 93.0 200903 75.8 201006 28.9 31.05 47.6
CMC - 15.15 30.46 201003 0.0 461.4 129.6 200903 105.6 201006 40.8 31.49 51.1
Allcargo Global - 26.1 25.19 200912 109.3 766.8 98.0 200812 92.7 201006 26.0 26.5 69.8
Solvay Pharma. - 5.05 24.76 200912 0.0 125.0 40.0 200812 32.8 201006 15.4 38.52 88.9
Exide Inds. 2003 85 23.70 201003 90.0 2104.5 537.1 200903 284.4 201006 165.3 30.78 46.0
Allied Digital - 23.25 23.48 201003 66.1 611.9 96.6 200903 79.5 201006 32.2 33.32 43.4
Colgate-Palm. 1993 13.6 22.64 201003 4.6 312.5 423.3 200903 290.2 201006 122.0 28.82 51.0
GlaxoSmith C H L 1997 42.06 20.52 200912 0.0 863.0 232.8 200812 188.3 201006 71.8 30.82 43.2
BASF India 1998 40.77 20.24 201003 0.0 825.0 96.8 200903 68.6 201006 48.9 50.47 71.7
Abbott India 1998 13.68 18.85 200911 0.0 257.9 77.5 200811 62.9 201008 23.9 30.83 68.9
Titagarh Wagons - 18.81 18.81 201003 74.3 428.1 65.4 200903 64.8 201006 20.6 31.48 49.1
D C Holdings - 48.69 17.81 201003 342.3 1209.6 260.9 200903 140.1 201006 91.2 34.96 63.4
H T Media - 47 16.69 201003 177.5 961.9 124.8 200903 85.2 201006 31.7 25.38 68.8
Atlas Copco (I) 2006 22.56 15.24 200912 95.4 439.2 84.8 200812 83.7 201006 31.5 37.11 83.8
Asian Paints 2003 95.92 14.52 201003 68.6 1461.3 774.5 200903 362.4 201006 201.0 25.95 50.6
GVK Power Infra. - 157.92 13.98 201003 100.3 2308.0 21.7 200903 21.0 201006 9.7 44.86 54.3
Bayer Crop Sci. 1987 39.5 10.29 201003 114.0 520.3 127.3 200903 94.5 201006 49.1 38.59 71.1
Sun TV Network 2007 197.04 9.23 201003 0.0 1818.0 567.4 200903 437.1 201006 171.0 30.13 77.0
Jagran Prakashan 2006 60.24 7.15 201003 121.4 552.3 175.9 200903 91.6 201006 55.6 31.61 55.3
# Reserves is excluding revaluation reserve and net of debt
Source : Capitaline, ICICIdirect.com Research

ICICIdirect.com | Equity Research

 Bonus Candidates

Pankaj Pandey Head – Research pankaj.pandey@icicisecurities.com

ICICIdirect.com Research Desk,

ICICI Securities Limited,
7th Floor, Akruti Centre Point,
MIDC Main Road, Marol Naka
Andheri (East)
Mumbai – 400 093
research@icicidirect.com

Disclaimer
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way,
transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of
ICICI Securities Ltd (I-Sec). The author of the report does not hold any investment in any of the companies mentioned in this report. I-Sec may be
holding a small number of shares/position in the above-referred companies as on date of release of this report. This report is based on information
obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness
guaranteed. This report and information herein is solely for informational purpose and may not be used or considered as an offer document or
solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal,
accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities
discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their
own investment objectives, financial positions and needs of specific recipient. This report may not be taken in substitution for the exercise of
independent judgment by any recipient. The recipient should independently evaluate the investment risks. I-Sec and affiliates accept no liabilities for any
loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Actual results may
differ materially from those set forth in projections. I-Sec may have issued other reports that are inconsistent with and reach different conclusion from
the information presented in this report. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or
resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject I-Sec and affiliates to any registration or licensing requirement within such jurisdiction. The securities described
herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come
are required to inform themselves of and to observe such restriction.

ICICIdirect.com | Equity Research

Page 2