CNI Publications; Weekly Plattern

Weekly summary

Editorial
Bullish stinct is created across the street. There is not a single sell call coming from any corner which is really bothering. Even position wise the cautious stance is left behind by traders as Nifty is closed above 5750 the barrier. Unless Nifty now breaks down the buying euphoria will continue. My call is avoid long in A gr shares except Cement shares. Cement is looking for more consolidation. Please note I was the first person to give buy on cement when cement was not doing well. Another sector which may attract investors attention is media and infra. These 2 sectors may see next bout of reforms and could jus explode. Banking has come long way. SBI scaled from Rs 1840 to 2275 and I just cant find all those guys which had given sell call with target of Rs 1400. I think they should be hanged in reverse direction like AGNIPATH so that they stop playing with public sentiments. IOB and DHANBANK both calls have given good results from CNI fold I have heard good analysts talking about negative in DHANBANK when board announced to raise Rs 200 crs. The rationale again dilution like IFCI. Well, they are more learned so cant just help them. First of all the fund raising is because of basel III requirement and RBI being after bank as reporting losses for any bank is a serious offence as far as RBI is concerned. Secondly the bank which is in losses there is question of dilution of equity and earnings. In any case, this is a soft takeover target and to my mind already papers are underway for the same and the indicative price is Rs 86. Therefore stock has potential to rise till 70 75 at least. Good hands are buying and some desperate selling at 56 was fully absorbed Mukand Engg is another find. Mark my words this stock will cross earlier high of 125 in next 2 years. I had done VIP at Rs 34 and it went on to Rs 1000. Mukand is an R B company. It has strong order book of 378 crs and ebita margin of 18 to 22% rest you can calculate. This will translate into a big growth story.

Vol -1, No-I, 05 Oct, 2012, 11 pages

Change of the week 05-Oct-12 Rise /Gain

176 40

Sensex Nifty

18938 5746

FII 01-Oct-12 03-Oct-12 04-Oct-12 05-Oct-12 Total 207.51 602.39 944.53 4351.99 6106.42

DII (189.1) (668.14) (818.56) (189.1) (1864.9)

Turnover (` Cr)
FII 05-Oct-12 25459.64 DII 11515.02 Combined 36974.66

05-Oct-12

Advances
419

Declines
1061

Ratio
0.39

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Market is getting in nervous mode ahead of quarterly results. As told you time and again stop playing on results day. The fact is simple. All the stocks whether large cap or small cap they have controlled moves. If the results are bad then there is no stopping of seeing stock 20% down in no time provided street is long with good expectations? Else reverser game. If results are good and street is long it may give passage to you not good profit. If result beats street expectations with margin then only you can have pie of cake. For that you need not be good investors. Just become member of any of the BBM gr (more than 100 gr ) there on the street where all the nos are flashed before board announces the nos. You will action time which otherwise is not available if you react on TV flash where even reaction time is not given to you. You trapped and raped Today a wire channel flashed Infosys report of CLSA saying the stock will correct by 40%. Off course this came to be hoax and stock though corrected by 1% and started recovering the clarification came that this is not CLSA report. Now you can understand even TV channels have no patience to wait for official confirmation from CLSA whether it is their report or someone else...? Where is the accountability? On valuations Infosys is safe bet in any correction. The dirty game should stop somewhere to hold the integrity of the market. . Another good flash came in BBM gr that ASIAN SATELITE a Zee gr company to buy 1.66 cr shares or 6.23% from HSBC via bloc deal tomorrow at 56. Stock price jumped from 48 to 51 with huge volumes. Most probably this should be hoax message like what we had seen MTNL land story and close at 52 (vallan) which in fact closed at 32 ( 10 rs down). Yes I myself had recommended to add IVRCL at 36 37 levels as sooner than later Essel gr will add state but it seems this could be just another attempt of creating false market. Let us see if the deal happens tomorrow then really good though logically sounds impossible as why should HSBC sell at 56 when Essel had bought stake 13% at 70 plus? Today we saw another media story on United spirit saying deal will be reported today. Then came another BBM message deal will be reported. Finally came deal will be postponed for 6 months. You can infer what you want to? We stick with what we said in our report. Finally KFA talks failed and KFA officially said that there is no money to pay salaries. U

5 Top Gainers
Stock
ESSAR OIL ADANI ENTER IND BULL REAL MRPL HDIL

05-Oct-12
60.50 234.85 66.85 68.45 108.50

01-Oct-12
50.80 201 57.65 60.85 97.65

% Gain
19.09 16.84 15.96 12.49 11.11

5 Top Losers
Stock
GUJ GAS IPCA LAB CADILAL HEALTH RASHTR.CHEM GLENMARK.PH

05-Oct-12
306.40 441.85 820.85 56.95 401.05

01-Oct-12
342.50 481.80 872.20 60.05 421.90

% Loss
10.54 8.29 5.89 5.16 4.94

Top 5 Picks By CNI 'A' Group Company TATA STEEL SAIL IFCI RIL CAIRN INDIA

Top 5 Picks By CNI 'B' Group Company BOMBAY BURMAH POLYPLEX CORPORATION FSL MUKAND ENGINEERS PIRAMAL GLASS

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decide is it easy to make a co BIFR and then OTS in India or pay back 1.5 BN USD straight away...? Nifty closed at 5570 and can rise till 5860 but post Infosys result market may correct. Result month generally gives pain to 99 traders out of 100 only one gains. If you want to be that one you should be at the mountain. Cement is good play and I still like Century. Even aban has come in new zone post it has come out of F and O. Avoid leveraging in F and O till we see 5500 on support side. Meanwhile one can accumulate good stocks in B gr. The biggest even bull market will make you regret in 2015 and you will say why I did not own shares? This BULL RUN will be the biggest ever and you will get bigger returns than land. DO not hurry in selling stocks you own rest is your call and I will always pray to GOD that keep everyone happy. As expected Nifty climbed but will find stiff resistance at 5860. It closed at 5829. I expect the party will not sustain for long as nothing constructive is coming out from reforms process. In fact Govt has given a new tool in the hands of operators that land sell which is still miles away. This is now being used as toy for creating volatility. MTNL is classical example. BBM gr were today found circulating even H P BP land sell stories to push the stock prices. Again be careful. It requires parliamentary nod. If that be the case the SBI must quote at Rs 10000 as it holds largest real estate. Why not Govt swap the land in India with that of US? Indian land is more costly than US and probably the PSU cos will get good business sitting in US and learn some lessons of efficiency. Please now we are subscribing to Rs 2,60,000 crs of PSU inefficiency and yet Govt is asking rise in petrol diesel and gas prices..? If think nobody wants to understand the real problem on hand and raise everything. Yesterday BBC in live interview has asked our HONble FM how many ministers in India take bribe..? The answer was this utter non sense. Then what is sense.? RAJA and KALMADI eating out over Rs 3 lac crores going in jail and back in parliamentary committee..? Is this sense..? We have crossed 19000 today which I had told you time and again will happen as valuations based on earnings of 12 13 says 18900 is fair value. However we have crossed this level and this is due to liquidity. I had told RE will be at 52 and it is even though this pace has killed traders and corporate once again. This is one of the reasons CNI has avoided to enter commodity and currency advisory which gives nothing but losses. The valuations have reached as if our GDP growth is 7.5% hence the momentum may get converted into distribution on results. There is no chance of expecting a good quarter. Q 2 will be bad than even Q1 and hence the chances of retail getting stuck is very high. Support lies at 5630 and if broken then we cans see 5500 in Oct. Infosys has been downgraded by CLSA and 40% correction in price is estimated by their sales team which suggest Infosys could set the weaker tone for the market. We will therefore suggest just do some time pass in OCT and not serious trades on long side. You may go short. This I am telling you even though I hold that we will see 6000 in Diwali. Market will correct on results especially stocks as the gaps were increased is great magnitude leaving enough scope of correction. ADANI was bad at 150 good at 226 can see hammering on results. Even Pantaloon and few other stocks will follow the trend. A leading stock broker was disabled for the trade of Rs 700 crs (already into losses of Rs 140 crs leaving cash balance to just Rs 105 crs) but what happened to exchange? The rule book suggest that there has to be 10% circuit for 1 hour halt and then 15% for another halt and close to trades for the day if hits 20%. Here we had seen 16% hit as Nifty was hit at 4888 and all major banks were 20% lower circuit. In fact, the analysis of pre this event throws many question open One that why was no 10% circuit on the Nifty applied..? Secondly if Rs 700 crs deal from one terminal and one broker has to happen then they must have paid margin at least 15 to 20 hours ahead which means their was presumably knowledge of some deal to the exchange.

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The volume in Nifty was extra ordinary before the event happened. To best of my knowledge it was 42 lac shares which we generally do not see till 11 pm and by 11 pm it had crossed 1 crs volume post the event. What it could mean you have to decide as I am just sharing some facts and statistics. Last year we had seen on 3 occasions Nifty was attacked badly. Today was the worst at just with Rs 700 crs the Nifty was hit by 16% which is huge by any stretch of imagination. The average volume of Rs 150000 crs therefore raise eye brow..? The effect of NSE compulsory winding up all positions of the said broker is also seen on many small brokers which are now geared up to cut the margin trades as risk is huge. Street is still overbought. It seems the party is over for the time being and the theory of gap filled will not work. If the FM goody if disappoints the street then we will see gap down on Monday. If this happens then we can see consequential chain reaction next week. Also the INFOSYS saga is still on with CLSA note of 40% correction could mean that results will be very bad. I am not sure about Infosys but certainly many companies will report very bad nos and will see huge distribution happening in OCT hence there is always caution required. Meanwhile huge action have stated in stocks which have gone out of F and O. 5630 is a good support and if broken then we may see even 5500 in Oct and we will see equally fast rally in Nov and can see 6000 on DIWALI. It is important to save yourselves in this bout else you will back by at least 6 months which will disable you from trading and investment.

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Next Weeks Events

GLOBAL STORY
The hot media headline of all news papers and wire channels is only one issue that is no depth in the NSE which exposed NSE to a 16% fall in S and P Nifty by mere sell orders of Rs 650 crs by EMKEY a leading stock broker. Inadvertently the broker is penalized on 2 accounts one he had to take hit of around Rs 80 crs losses (50% of its Networth) and second is it will be paying some penalty to exchanges. Exchange could be happy getting some money in their kitty even at the cost of loss of 3 lac crores market cap in fraction of second. However the moot question is who will make good the losses of traders, jobbers and arbitrage whose stop losses got triggered in flash of span making huge losses estimated over Rs 50 to 70 crs. We know at least one broker whose name we will not report here where many people made crores of rupees as they had regular practice of keeping buy orders at first lower circuits and their orders got triggered and they sold all after normal markets resumed. There were 12 to 14 accounts in which huge credits came. Why not trade guarantee fund should be used to compensate the losses of investors for no mistake of theirs? But India this is not a prevalent practice. This is a show case as not a single case is seen where investor has got justice. In fact this reminds us again the PIL filed in Delhi H C against exchanges where a loss of Rs 108000 crs is claimed due to suspension of 1600 companies where millions of investors are stuck. The second issue which needs to be noted is that why this happened at the first place? No doubt the 10% circuit did not hit for whatever reason say exchange fault or inefficiency or failure to apply circuits the main issue remains is that this happened because there was no physical settlement. Had there been physical settlement we could have seen equal amounts or even more buyers even at 5600 5500 due to fact that there could have been huge buyers in cash market which could have easily absorbed the sell of 650 CRS basket selling

Monday, 8-Oct-2012 US Holiday Tuesday, 9-Oct-2012 4-Week Bill Announcement 3-Month Bill Auction Wednesday, 10-Oct-2012 Treasury Budget Beige Book Thursday, 11-Oct-2012 International Trade Jobless Claim Friday, 12-Oct-2012 Producer Price Index Consumer Sentiment

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Over last 15 years more than 20 BN USD have gone out of the market which was Indian money and now we are heavily dependent on foreign money. The issue of physical settlement is the most burning issue on hand the only agency not ready to deal with it is NSE. They had earlier argued that they were not in favour of physical settlement but were supposed to introduce some European contract system in the derivatives. End of the day we are away from both. The last hope of PHYSICAL SETTLEMENT going through could be MR JIGNESH SHAH. If does then we see lot of volumes shifting to MCX SX as NSE remained stiff with the brokers and investors community for years due to sheer monopolistic situation. As regards market we believe the Bull trajectory intact but there no need to just rush and go long at gun point. The slew of measures announced will not convert any fiscal correction. The matter which can prop economy and market are rate cuts and fiscal correction and we need to see strong will power to address these concerns. Even the much talked about reforms may not appeal many investors. What we require in reforms are recognition of shares as an assets class through physical settlement, reforms in trade to trade which has direct impact and bearing on retail investors and market wide limits in F and O linked with the market cap of the company. Only drop in transaction costs cannot bring back retail investors. We need to provide capital protection not directly but through in built processes which can see healthy trend in capital market. If Germany is showing concerns about algor trades why is India shying away which is killing the market rhythm and also making many job losses and hence could be considered as against the national interest. The Q 2 earnings will be below expectations whereas market had sharp run up of over 2000 points in Sensex could make a strong case of profit booking and distribution on Q 2 earnings announcements hence we suggest our members not to fall in the fishing net. At the same time we suggest buying B Grade shares keeping in mind long term targets of Sensex. First target is 21000 which should happen before March. Next target is 26000 by March 2014 then we can see Sensex 30000 by March 2015 and 41000 by March 2016. Please see our B S where 41000 Index is flashed from 2010 which shows the CNI confidence on the market. Wait for correction till 5600 in Oct 2012 for buying A gr shares.

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Global Indices
Country
Hong Kong Singapore South Korea United States United States United States Japan United Kingdom Malaysia Indonesia Thailand France Germany Argentina Brazil Mexico Austria Belgium Netherlands Spain Switzerland Australia China Philippines Sri Lanka Taiwan East Egypt

Indices
Hang Seng Straits Times Seoul Composite NASDAQ DJIA S&P 500 Nikkei 225 FTSE 100 KLSE Composite Jakarta Composite SET CAC 40 DAX MerVal Bovespa IPC ATX BEL-20 AEX General Madrid General Swiss Market All Ordinaries Shanghai Composite PSE Composite All Share Taiwan Weighted CMA

Date
05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10 05/10

Index
21,012.38 3,107.87 1,995.17 3,136.19 13,610.15 1,460.93 8,863.30 5,871.02 1,660.23 4,311.31 1,311.35 3,457.04 7,397.87 2,485.76 58,571.59 41,934.08 2,172.70 2,436.48 332.53 801.59 6,674.82 4,513.80 2,086.17 5,439.84 5,879.69 7,690.65 1,087.15

Net Change
+104.43 +21.23 +2.49 -13.27 +34.79 -0.47 +38.71 +43.24 -1.24 +39.85 +4.72 +55.84 +92.66 +16.34 +113.59 +512.34 +26.55 +28.53 +4.87 +14.88 +43.47 +41.20 +29.85 -3.90 +18.34 +8.31 -1.39

Change +0.50 +0.69 +0.12 -0.42 +0.26 -0.03 +0.44 +0.74 -0.07 +0.93 +0.36 +1.64 +1.27 +0.66 +0.19 +1.24 +1.24 +1.18 +1.49 +1.89 +0.66 +0.92 +1.45 -0.07 +0.31 +0.11 -0.13

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Bulk deal
Company Name Aarey Drugs ADINATH BIO Ankush Finstock Anuvin Inds Arnav Corp Raj Oil Mills Limited IVRCL Limited IVRCL Limited Raj Oil Mills Limited Aries Agro Limited Aries Agro Limited ARSS Infra Proj. Ltd ARSS Infra Proj. Ltd ARSS Infra Proj. Ltd ARSS Infra Proj. Ltd Bilpower Limited Bilpower Limited Bilpower Limited Bilpower Limited Lovable Lingerie Ltd Lovable Lingerie Ltd Lovable Lingerie Ltd Lovable Lingerie Ltd PI Industries Ltd PI Industries Ltd Raj Oil Mills Limited Raj Oil Mills Limited Tulip Telecom Limited Tulip Telecom Limited ARSS Infra Proj. Ltd ARSS Infra Proj. Ltd ARSS Infra Proj. Ltd ARSS Infra Proj. Ltd ARSS Infra Proj. Ltd ARSS Infra Proj. Ltd ARSS Infra Proj. Ltd ARSS Infra Proj. Ltd ARSS Infra Proj. Ltd ARSS Infra Proj. Ltd Eveready Industries In Eveready Industries In Tech Mahindra Limited Tulip Telecom Limited Tulip Telecom Limited Tulip Telecom Limited Date 05-Oct-12 05-Oct-12 05-Oct-12 05-Oct-12 05-Oct-12 05-Oct-12 04-Oct-12 04-Oct-12 04-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 03-Oct-12 01-Oct-12 01-Oct-12 01-Oct-12 01-Oct-12 01-Oct-12 01-Oct-12 01-Oct-12 01-Oct-12 01-Oct-12 01-Oct-12 01-Oct-12 01-Oct-12 01-Oct-12 01-Oct-12 01-Oct-12 01-Oct-12 Client Name DEEPIKA JASMIN SHAH PRANALI COMMODITIES DHARITA STOCK DEAL RATANLAL HASTIMAL BO AJAY RAVINDRA SHAH SYNDICATE NIRMAN PVT ASIAN SATELLITE BROD ALIVE CONSULTANTS AL ANKIT KAMLESHBHAI SH RAHUL DOSHI RAHUL DOSHI CROSSEAS CAPITAL SER BOOPATHY N CROSSEAS CAPITAL SER MBL & COMPANY LTD. ASSHOK JASRAJ JAIN ASHADEEP MULTI TRADE RADIANCE EXIM PVT LT VIJAY GIRJASHANKAR T CROSSEAS CAPITAL SER SHREE NAMAN SECURITI CROSSEAS CAPITAL SER SHREE NAMAN SECURITI CITIGROUP GLOBAL MAR STANDARD CHARTERED I ANKIT KAMLESHBHAI SH ANKIT KAMLESHBHAI SH PINE WOOD INFORMATIO RELIGARE FINVEST LTD CROSSEAS CAPITAL SER DINESH MUNJAL(HUF) INDUS PORTFOLIO (P) MBL & COMPANY LTD. SHREE NAMAN SECURITI CROSSEAS CAPITAL SER DINESH MUNJAL(HUF) INDUS PORTFOLIO (P) MBL & COMPANY LTD. SHREE NAMAN SECURITI SHARAD SHAH. HSBC GLOBAL INVESTME INVESTA CAPITAL MANA J P M S L A/c Coptha ECL FINANCE LIMITED RELIGARE FINVEST LTD Deal Type P P P P S B B S S B S B S S S B S S S B B S S B S B S S S B B B B B S S S S S B S B B S S Quantity 143970 1752116 50000 34850 57000 987555 708504 1549240 848195 40943 67943 205791 119844 205791 136151 150000 100000 54000 90000 173808 232530 173808 208418 300327 311993 384814 384814 1127750 1308732 411798 139451 187758 81612 140040 411798 139451 187758 81612 149093 500000 500000 796819 809812 1363794 877238 Price (Rs) 52.22 1.3 13.33 10.61 12.75 7.28 47.8 51.02 7.78 68.28 68.23 65.55 65.4 65.76 65.66 46.31 46.2 46.15 46.25 365.63 363.36 365.2 366.09 569.94 570.11 8.72 8.24 41.48 41.23 63.72 64.04 64.12 63.87 64.29 63.68 64.02 64.17 63.9 64.11 20.86 20.62 1022.41 45.9 46.34 44.72

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Call put option

Option Month Strike Price October - 3800.00 October - 3900.00 October - 4000.00 October - 4100.00 October - 4200.00 October - 4300.00 October - 4400.00 October - 4500.00 October - 4600.00 October - 4700.00 October - 4800.00 October - 4900.00 October - 5000.00 October - 5100.00 October - 5200.00 October - 5300.00 October - 5400.00 October - 5500.00 October - 5600.00 October - 5700.00 October - 5800.00 October - 5900.00 October - 6000.00 October - 6100.00 October - 6200.00 October - 6300.00 October - 6400.00 October - 6500.00 October - 6600.00 October - 6700.00 October - 6800.00 October - 6900.00 Volume 0 300 49750 200 0 0 100 75400 39350 117150 146750 212750 742350 1030150 3025900 5032150 5928750 10972450 17590350 23172250 19442500 2644150 378250 51850 15250 26900 250 5300 0 0 1050 2750 Best Buy 0.15 0.25 0.15 0.25 0.3 0.4 0.55 1.1 1.1 1.25 1.5 1.7 2.15 2.5 3.1 4.4 7.25 14 27.1 51.8 92.4 155 233 319 417 516 514 715 699 796 1003 1112 Best Sell 0.3 0.3 0.3 0.5 0.5 0.6 1.1 1.2 1.2 1.4 1.6 1.85 2.2 2.7 3.25 4.5 7.45 14.2 27.2 51.8 93.8 156.8 238.6 331.2 434.8 524 652.2 722.9 986 1089 1191 1125 PUT LTP 0.2 0.3 0.15 0.25 0.2 0.25 0.8 1.2 1.2 1.3 1.5 1.75 2.15 2.5 3.25 4.45 7.45 14 27.2 51.75 93 154.9 233.6 324.4 419.5 521.2 626.6 715 753 990 1017 1105 OI 11050 4450 113050 7050 1950 5650 11000 155100 65450 307750 424000 893750 1544300 1395500 2994150 4495650 4963850 5558450 5442350 5474000 2897700 1007150 706100 139150 74450 133250 100950 207600 12750 3150 37200 33500 Change OI(%) 0 -1.11 -4.36 0 0 0 0.46 24.58 -25.3 27.09 -6.59 6.09 1.61 -3.2 -9.02 1.72 -5.08 10.86 -2.48 -1.69 2.41 0.21 -2.38 -0.96 13.4 5 0.15 1.67 0 0 2.9 8.77 Volume 0 0 46450 0 0 0 0 10900 200 350 1400 40800 21800 37300 18550 104950 165100 357300 1212300 7334400 26722050 20789250 14476000 5917150 4218750 428500 15400 55800 4400 0 24500 12200 Best Buy 1784.9 1685 1758.3 1486 1545.4 1430.3 1255 1262.1 1161 1063.2 947.2 863.25 768.2 666.75 561.55 470.55 375.5 284.3 197.1 125.65 69.75 33.4 14.15 5.75 2.5 1.2 0.7 0.45 0.35 0.3 0.35 0.3 CALL Best Sell 2029.5 1929 1764.7 1729 1621.4 1529.4 1472 1270.3 1170.7 1072.7 983.2 870.05 772.7 670 588.1 475.05 379.15 286.6 199.4 125.9 70.1 33.95 14.45 5.8 2.65 1.25 0.75 0.55 0.5 0.5 0.5 0.45 LTP 1998 0 1758.1 1310 1600 1510.2 1265 1266.5 1163.9 1064.8 970.1 863.85 760 670 575 473 376.05 284.65 199.25 125.9 70 33.95 14.45 5.75 2.6 1.25 0.75 0.55 0.45 0.35 0.45 0.4 OI 44400 0 232500 50 7600 26850 650 220750 31900 179400 140100 163850 322750 352300 525650 949950 737900 1336200 1701150 3446700 6455900 5890650 6718500 3034400 1796250 763750 127150 161750 26000 1750 3900 7900 Change OI(%) 0 0 -2.82 0 0 0 0 -4.42 0.47 -0.11 -0.74 15.02 -5.05 -3.31 -0.92 0.03 -3.01 -11.54 10.61 11.17 32.66 16.03 10.19 17.64 -19.79 0.53 -1.62 -20.38 1.36 0 36.84 0

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Sandur Manganese & Iron Ores Limited

BUY
CMP Price Target Upside Sensex Nifty 585 810 38% 19016 5700 11-07-2011

iron ore market dynamic

The Sandur Manganese & Iron Ores Limited (hereinafter referred to as SMIOL or the Company) was incorporated on 18th January 1954 as a private limited company under the name The Sandur Manganese and Iron Ores Private Limited. In 1964, the legal status of the Company was changed to public limited company with present name. The Company is engaged in mining of manganese and iron ore. The major activities of SMIOL are mining of finest low grade, low phosphorous, manganese and iron ores and sale of ferro alloys. The Company is the flagship company of the Sandur group. The group also owns facilities to produce resistor networks and copper clad laminates. Forward Integration: Setting up beneficiation plant at Vyasankere, Karnataka During FY 2010, the Company planned to set up an iron ore beneficiation plant at Vyasankere, Karnataka at a cost of around INR 165 Crore. The beneficiation plant would be used for upgrading 55/56 grade iron ore to ~62/63 grade concentrate. This upgrade would add value to Companys iron ore reserves. Setting up alloy steel plant at Vyasankere, Karnataka During FY 2010, the Company also planned to set up a medium sized special alloy steel plant at Vyasankere with production capacity of 2.5 lakh tonnes per annum with an estimated investment of INR 700 Crore. Increase in revenue from TMT steel bars The Company entered into an arrangement with a local mini steel plant in FY 2009 to produce TMT (Thermo Mechanically Treated) bars from steel billets supplied by the Company. Sale of such TMT steel bars added to the revenue stream of the Company in FY 2010 with the revenue from TMT steel bars increasing from Rs 30 lacs in FY 2009 to INR 12 crs in FY 2010.

Stock Details
Industry Market Cap (` Mn) O/S Shares (Mn) Free Float (Mn) 52 Week H/L Avg. 1 mth Vol. Face Value (`) Bloomberg Reuters BSE Code
Mar11

Iron ore 5118.75 8.75 2.08 1098/500 17552 10 SMIO IN SUMG.BO 504918
Dec10 Mar 10

Shareholding Pattern (%)

Promoters FII DII Others
Source: BSE

74.25 1.89 5.89 18.16

74.29 1.92 5.67

18.12

74.36 2.71 5.61

17.32

Price Performance (%)

1M Absolute (1.2) Rel. to Sensex (4.4) 3M 6.5 (5.5) 6M 12M 12.8 (7.7) (9.6) (1.4)

Ritin shah Ritin.shah@cniglobalbiz.com +91 22 2838 3889

Financial Highlights

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Year Net Sales % of growth EBITDA % of sales RPAT EPS (Rs) EV/EBITDA PE P/BVPS ROE (%)

FY 10 294.17 -32.34 48.34 16.43 22.40 25.10 10.07 23.31 2.48 12.04

FY 11 362.77 23.32 143.80 39.64 83.16 95.04 3.33 6.16 1.78 34.32

FY 12E 372.23 2.61 151.81 40.78 88.53 101.18 2.99 5.78 1.37 27.26

FY 13E 409.81 10.09 208.42 50.86 138.76 158.58 2.10 3.69 1.00 31.78

DISCLAIMER STATEMENT
This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Nothing in this document should be construed as investment or financial advice, and nothing in this document is solicitation to buy or sell the securities of companies referred to in this document. The intent of this document is not in recommender nature. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. This document 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. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Neither the Firm nor its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. Copyright in this document vests exclusively with CNI Research Ltd.

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Name of Editor: Minit jhaveri Publisher: Mr. Kishor Ostwal 120, Gokul Arcade, Sahar Road, Vile Parle (East), Mumbai-400057 Tel No: 022-28220323/28383889, Fax No: +91-22-28242220 E-Mail at: chamatcar@chamatcar.com

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Owner: CNI Research Ltd

Place of Publication A-120, Gokul Arcade, 1st Floor, opp Garware House, Sahar Road, Vile Parle (E) Mumbai- 400057

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