TAJGVK HOTELS & RESORTS LTD.

Q4 FY 2008 update RESEARCH

Sector Hospitality I

BUY
CMP Rs 151 I Target Rs 220

KEY HIGHLIGHTS
STOCK DATA Market Cap Book Value per share Eq Shares O/S (F.V. Rs.10) Median Vol (12 mths) 52 Week High/Low Bloomberg Code Reuters Code Rs9.5bn. Rs37.2 62.7mn. 42,233(BSE+NSE) Rs205 / 100 TAJG@IN TAJG.BO

TajGVK Hotels & Resorts Ltd. (TAJGVK) reported a 5% YoY growth in revenues to Rs714mn for Q4FY08. This could be attributed to a 7% YoY jump in Food & Beverages (F&B) income. Room revenues marginally up, but F&B income surges While its F&B income surged 7% YoY to Rs240mn, Average Room Realisations (ARR) across its 3 Hyderabad properties remained flat YoY at ~Rs8.3k. Occupancy Rate (OR) was flat YoY at 87% in Q4FY08, and the Revenue Per Available Room (RevPAR) for TAJGVKs Hyderabad properties was staid at Rs7.5k in Q4FY08. The Chandigarh property turned in a creditable performance with a RevPAR of Rs5.4k (+18% YoY). Marginal rise in OPM, Net Profits grow 7% OPM improved marginally to 49.9% (+30bps YoY) as revenue growth outpaced that of the expenditure. Despite capital charges rising 30% YoY to Rs45mn on account of depreciation, net profits posted a 7% YoY growth to Rs200mn. Capacity Expansion The commissioning of TAJGVKs greenfield property in Chennai is slated for Jun08. The proposed 23 room addition at Taj Deccan is scheduled to take place by Q4FY09 and plans are afoot for setting up a new block of hotel rooms and serviced apartments at its existing properties viz. Taj Deccan & Taj Krishna resp. TAJGVK has also announced the signing of a management contract for a greenfield project in Begumpet (Hyderabad). It is also scouting for suitable locations for hotel properties in Amritsar (Punjab), Kodaikanal (T.N.) and Jaipur (Raj) & Bangalore (Karnataka). VALUATIONS AND RECOMMENDATION

SHAREHOLDING PATTERN (%) Qtr. Ended Promoters MFs/FIs FIIs PCBs Indian Public Sep-07 74.6 6.5 3.9 1.8 13.2 Dec-07 74.6 6.4 4.7 1.5 12.8 Mar-08 74.6 6.2 4.8 1.6 12.7

STOCK PERFORMANCE (%) 1M 42.3 28.8 3M 2.0 6.7 12M (15.9) (31.5)

Absolute Relative

STOCK PRICE PERFORMANCE

400 300 200 100 0 Apr-07

TAJGVK

BSE (Rebased)

Jun-07

Sep-07

Dec-07

Mar-08

There are multiple earning scale up triggers like the ramp up at Chandigarh, commissioning of the new property in Chennai and additional inventory in Hyderabad. This imparts strong revenue outlook for the company and hence we maintain our BUY recommendation on the stock, with a price target of Rs220 with a 12 month investment horizon.
KEY RATIOS
Yr Ended (March) Yr Ended (March)
2010E 3,782 Dil. EPS (Rs) ROCE (%) RONW (%) P/E (x) EV/Sales (x) EV/EBIDT (x) 2006 7.4 10.3 34.1 20.5 5.3 11.9 2007 10.1 12.4 37.4 15.0 4.1 8.7 2008 11.2 14.2 33.6 13.5 3.8 7.9 2009E 13.4 12.3 32.1 11.2 3.2 6.4 2010E 17.0 11.2 32.0 8.9 2.6 5.2

KEY FINANCIALS (STANDALONE)

Rs mn
Net Sales

Quarter Ended
Sep-07 592 Dec-07 704 Mar-08 714 2006 1,887

2007 2,429

2008 2,575

2009E 3,159

YoY Gr. (%)

Op. Profits

2.2
278

16.4
327

5.4
356

63.8
842

28.7
1,139

6.0
1,220

22.7
1,542

19.7
1,876

Op. Marg.(%)
Net Profits Eq Capital

46.9
162 125

46.4
191 125

49.9
200 125

44.6
463 125

46.9
632 125

47.4
704 125

48.8
843 125

49.6
1,067 125

Analyst - Amol Rao I amolr@pinc.co.in I Tel: +91-22-6618 6378 Abhishek Dalal I adalal@pinc.co.in I Tel: +91-22-6618 6462

02 May 2008

PERFORMANCE OVERVIEW

Occupancies & Room Rates flat in Hyderabad...

TAJGVKs results in Q4FY08 were in line with our expectations. TAJGVKs 3 Hyderabad based properties viz. Taj Krishna, Taj Deccan & Taj Banjara clocked a combined OR of 87% (+1%YoY). Growth in ARRs for TAJGVKs Hyderabad properties was flat at Rs8.7k. The unchanged ARR and marginal increase in OR could be attributed to the high base effect of the previous year. As a result, RevPAR for the Hyderabad properties was flat YoY at Rs7.5k.

ARR trend for Hyderabad (Rs/day)

Taj Krishna 12,000 9,500 7,000 4,500 2,000 Q4FY04 Q4FY05 Q4FY06 Q4FY07 Q4FY08
Source: Company

OR trend for Hyderabad (%)

Taj Krishna 100 85 70 83 88 87 55 40 Q4FY04 Q4FY05 Q4FY06 Q4FY07 Q4FY08 74 90 82 Taj Deccan Taj Banjara

Taj Deccan

Taj Banjara

87 90 92

Creditable performance turned in by the Chandigarh property... 7% hike in F&B income gives fillip to total revenues...

Taj Chandigarh turned in a superlative performance in the quarter. While ARR rose 18% YoY to Rs7.7k OR stood at 82% (+11%age points YoY). RevPAR at Chandigarh rose 19% YoY to Rs5.5k. Overall, room revenues grew by 3% YoY to ~Rs440mn, as the performance of the Chandigarh property evened out the stagnant room collections in Hyderabad. Income from food & beverages (F&B) witnessed an appreciable rise of 7% YoY to Rs240mn. Hence, net revenues for the company witnessed a 5% YoY jump to Rs714mn. On the expenditure front, costs declined as a %age of revenues. Hence, OPM expanded by 30bps YoY to 49.9%. Interest charges stood at Rs8mn for the quarter (v/s Rs7mn in Q4FY07 and unchanged on a QoQ basis). Depreciation rose 37% YoY due to the capitalisation of renovation carried out at the various Hyderabad properties. Net profits rose 7% to Rs200mn. The company was scheduled to commission its 220 room Chennai property Taj Mount Road in Oct07, which got pushed back to Mar08 since the property had yet to receive an Occupancy Certificate. TAJGVK is still in the process of securing permissions for the launch of the property and has now targeted the end of Jun08 for commissioning of the same.

ARR & OR Trends for Taj Chandigarh

ARR (Rs/day ) (LHS) 10,000 7,500 5,000 5,800 5,500 6,000 6,500 6,500 6,200 6,500 6,700 7,700 2,500 OR (%) (RHS) 90 75 60 45 30

Q4FY06

Q1FY07

Q2FY07 Q3FY07

Q4FY07 Q1FY08

Q2FY08 Q3FY08

Q4FY08

Source: Company, PINC Reasearch

85 89 87
2

85 88 86

EXPANSION PLANS TAJGVK has lined up a slew of greenfield & brownfield expansions over the next 3 years which aim to achieve the following: 1) Consolidation of its leadership position in Hyderabad by augmenting capacities of existing Properties and by setting up a new property in the emerging Central Business District (CBD) of Begumpet. 2) De-risking its revenue stream by foraying into new geographies like Chennai, Amritsar, Kodaikanal & Bangalore. 3) Try and tap various price points in the hospitality value chain through different product offerings, thereby broad-basing its clientele.

Mix of greenfield & brownfield expansions aimed at widening of product & client profile ...

Expansion Plans for TAJ GVK

Rooms Existing Properties Taj Deccan (30 rooms) Taj Krishna Serv. Apt. Taj Deccan Sub Total - (i) New Properties Taj Mount Road, Chennai Taj Begumpet Amritsar / Haryana Kodaikanal Sub Total - (ii) Total Tentative Projects Bangalore (Near new airport) Jaipur Source: Company 350 NA 3.5 NA NA NA 220 190 150 75 635 1,015 1.4 0.7 1.0 0.6 3.7 5.9 Q4FY08 Q3FY10 FY12 FY12 30 50 300 260 0.3 1.0 1.0 2.3 Q3FY09 Q3FY10 FY13 Cost (Rs bn) Commission

Chennai property delayed, to be commissioned in Jun08 ...

Residency hotel in Begumpet CBD to tap rising demand in the city...

Greenfield Expansions a. Chennai: The new property, Taj Mount Road will help TAJGVK to capitalise on the shortage of rooms in the city, which is increasingly being viewed as an alternative to the national IT capital, Bangalore. The growing presence of the IT/ITES sector in Chennai, coupled with auto & pharma companies should prove to be a significant driver for hospitality sector revenues in the city, going forward. The company is currently awaiting the Occupancy Certificate for its 220 room property. While the company had announced its intention to commence operations in Q3FY08, the same has been pushed back to Jun08 in light of the above. b. Begumpet: With this project, TAJGVK plans to capture incremental inbound travel into Hyderabad, as well as tap the demand emanating from the area, which is rapidly emerging as a new Central Business District (CBD).

Room addition of TAJGVK (FY07-12)

1,500 1,250 1,000 750 684 500 FY07
Source: Company 3

Ex isting Inv entory

New Room Addition

233 243 684 FY08E 684 FY09E 927 FY10E 927 FY11E 1,160 FY12E

The company will position the ~190 room property as a Residency hotel [as per standards set by its strategic stakeholder, Indian Hotels Co. Ltd]. With an ARR of ~Rs5,000-7,000, TAJGVK hopes to tap the price-point immediately below those offered by its 3 existing Hyderabad properties, thereby expanding the profile of its clientele. The company has signed the lease for the property for a period of 60 years (thereafter renewable for another 30 years). Under the terms of the agreement, the company will receive the shell structure of the hotel, built to specifications post which, it will expend ~Rs800mn on outfitting & decorating the interior of the property. TAJGVK hopes to commission the property by the end of CY09. The annual lease rent will be calculated as a %age of turnover from the property, though we await more details on the same. c. Amritsar: The city has immense potential as the recently commissioned international airport is expected to generate significantly higher volumes of travellers. The city also attracts large numbers of religious tourists visiting the Golden Temple every year in addition to the traffic from the Visiting Friends & Relatives (VFR) segment. TAJGVK was looking to tap the same by leasing out an existing property. However, renovating and refurbishing the same proved to be unviable and the company now plans to set up a greenfield property with 160 rooms, positioned as a Gateway hotel [which is the one of the lowest price offerings from the IHCL stable] with an estimated ARR of Rs3,000 5,000. TAJGVK is scouting for suitable location for this property and is targeting its commissioning by FY12 at an outlay of Rs1bn. d. Kodaikanal: The company has announced its intention to commission an upmarket spa & resort in the southern hill station of Kodaikanal. Spread over 10 acres and having 75 rooms, it is expected to cost Rs550mn and is slated for commissioning by end FY11. e. Bangalore: TAJGVK also plans to set up a hotel in Bangalore near the new airport, at Devanhalli. The company is yet to outline a time frame or capex for the same since its commissioning is in the distant future. However, prospects for the property are bright considering its proximity to the new airport and acute shortage of rooms in the city. f. Haryana: TAJGVK is also mulling to set up a property in Haryana, as the business activity in the state is rapidly scaling up. Also, the luxury market in the state is underserviced since the only inventory in the 5-star or 5-star deluxe segment in the region is the Taj Chandigarh. We await clarity on the timelines and expenditure for this project. g. Jaipur: The company plans to enter the Jaipur market, since the city is a tourist hotspot and receives a large number of tourists for 6 months in the year. Additionally, the steady stream of business travellers on account of the new SEZ in the city is also a factor that enhances the appeal of the city to hospitality operators.

Gateway hotel in Amritsar to tap new price point...

Company is venturing into leisure segment, in the form of a spa at Kodaikanal...

Brownfield Expansions
TAJGVK is upgrading its current inventory with luxurious, state-of-the-art rooms in order to ward off rivals like Hotel Leela, Radisson, Park Hyatt, Hilton, Le Meridien, Royal Orchid and several 4-Star hotel companies (e.g: Royal Orchids 4-Star property in its vicinity) that are set to enter Hyderabad from FY11 onwards.

Other offerings in the works include a shopping arcade and serviced apartments...

The company is increasing its room inventory at its Taj Deccan property, by converting a floor of executive rooms at the property into 23 rooms by Q3FY09. In order to capitalise on the demand for F&B services, it is also setting up a contemporary restaurant, in addition to a Resto-bar. All these will be accomplished at a cost of Rs250mn. It also has decided to convert additional 15k Sq.ft. floor space at theTaj Krishna into a high end shopping arcade, at an outlay of Rs30mn. TAJGVK intends to rent out this space to super-premium brands and we expect it to garner Rs400-Rs425 per sq.ft. per month translating into about Rs60mn p.a. from Q4FY09 onwards. It also plans to tap the promising serviced apartments segment and has announced its intentions to launch 43 serviced apartments in the Super-Luxury segment by the end of FY10. To be set up at an outlay of Rs1bn, this will be housed on a plot adjacent to the existing property, enabling the company to save on major operational costs. It also plans to add 180 rooms at the Taj Deccan by FY12 at an outlay of Rs1bn.

As per the industry norm, we expect the company to finance these projects in a debt:equity mix of 2:1. Steady cash flows from Hyderabad & Chandigarh properties, coupled with incremental revenues from Chennai property in FY09 & FY10 should help TAJGVK to comfortably raise the internal accruals required for the capex and help it to maintain a comfortable gearing of > 1x. OUTLOOK

IT, semi-conductors and pharma sectors to propel growth in demand for rooms in Hyderabad...

Hyderabad: In addition to being one of the largest IT hubs in India, Hyderabad is steadily metamorphosing into the countrys MICE (Meetings, Incentives, Conventions, Exhibitions) hub. One of the countrys largest convention & trade fair centres, the Hyderabad International Convention Centre (by the Emaar-MGF consortium) has a capacity of 6,500 seats and has hosted several prominent events and should continue to do so going forward.

Schedule of Major Events at Hyderabad International Convention Centre

Event 4th Asia Pacific Conf. on Reproductive Health Infocom 2007 Cardiological Society of India Annual Conf. Society of Petroleum Geophysicists International Leprosy Conference - 2008 PATA Travel Mart 2008 Start date October 29th, 2007 November 28th, 2007 December 1st, 2007 January 14th, 2008 January 30th, 2008 September 16th, 2008 No. of delegates 1,000 1,500 4,000 2,000 1,000 2,500

Source: Emaar-MGF Hyderabad International Convention Centre

The last mega event hosted at the venue was the International Astronautical Congress in Sep07 which attracted ~2k people. The city is set to host several other events, details of which are mentioned in the table above. Hyderabad also recently hosted the World Military World Games in Oct07, which drew participation of ~5k athletes from all over the world and boosted room and F&B revenues for all hospitality players in the city.

Airline Tie-ups for new airport

Domestic Airlines Inter. Airlines Air India Emirates Indian Airlines KLM Lufthansa Malaysia Airlines Oman Air Qatar Airways Saudi Arabian Airlines Singapore Airlines Sri Lankan Airlines Thai Airways

Arrivals into Hyderabad (mn no.s)

Domestic Arriv als 5 4 3 1 0 FY03 FY04 FY05 FY06 FY07 International Arriv als

New airport at Hyderabad will help maintain stable occupancies in the face of increased supply of rooms...

Air deccan Air India Air Sahara Go Air Indian Airlines Kingfisher Airlines Jet Paramount Spice Jet

Source: GMR Hyderabad Intl Airport Ltd.

Manufacturing & IT to provide sustainable business in Chandigarh...

In conjunction with the IT sector, which is adding capacity of 75k seats over CY07-08, new industries in the form of manufacturing facilities for FabCity (for semiconductors) & BioTech City (for pharma) are expected to generate substantial traffic for hotels . In anticipation of the enhanced traffic on account of business travellers, several players in the hospitality space have planned properties in the city. While capacities have been lined up, the same should take at least 24-36 months to fructify. Hence, we do not foresee an immediate softening of ARRs & OR in the city over the next 18 months. Upon commissioning of the new international airport (at Shamshabad, commissioned in Apr08), Hyderabad has witnessed a 13% rise in passenger volumes. This momentum is expected to sustain in the immediate future and build up in the near term, thereby boosting demand for rooms.
5

Chandigarh: With the recently commissioned IT park in Mohali and its proximity to the manufacturing clusters in Haryana and Punjab (Ludhiana, Parwanoo & Panchkula), there will be a steady demand for rooms from business travellers in the near future. Also, during the months from Oct-Jan, expatriate Indians/NRIs form a sizeable chunk of visitors to this region [also known as the Visiting Friends & Relatives (VFR) segment]. F&B revenues also get a boost during this period due to the festive/ marriage season. The recently inaugurated Indian Premier League games are also expected to generate significant demand, in the backdrop of the proximity of the Mohali stadium to the city. Lastly, the city is slowly emerging as a viable alternative to Delhi in the MICE segment, which helps steady occupancies in the lean season. VALUATIONS We maintain our positive outlook on the company and expect buoyant OR with steady ARR growth of 6-10% p.a. in the Hyderabad properties over the next 2 years. We expect Chandigarh to continue to improve on its performance going forward, by maintaining OR of ~75%. While ARR growth may not be as steep as seen in the past, we expect the property to register a 10-12% revenue growth from the current levels. We have also modified our estimates on account of the delayed commissioning of the Chennai property. We have now factored in 3 quarters of revenues from operations for the property with extremely low OR in FY09. In FY09E, we estimate revenues to grow by 23% to Rs3.2bn (v/s our prev est of Rs3.28bn) on the back of stable collections from the 3 Hyderabad properties, an improved performance in Chandigarh and inclusion of income from the new Chennai property and 23 new rooms at the Taj Deccan, Hyderabad. We expect OPM to stabilise at 49%, with operating profits settling at ~Rs1.5bn. Capital charges will rise due to the commissioning of new capacities and higher leveraging of the balance sheet on account of new projects. Consequently, we estimate net profits to grow by 20% to Rs843mn (v/s our prev. est of Rs913mn). In FY10E, we estimate revenues and profits of ~Rs3.8bn & ~Rs1bn resp. primarily due to a full years contribution from the Taj Mount Road, Chennai; the additional 23 rooms at the Taj Deccan as well as the rental income from the shopping arcade in the Taj Krishna . Although the company intends to commission the Begumpet property in Q3FY10, we have not factored in any effect of the same and will do so only after monitoring the progress made on the project. While there exists a locational risk to TAJGVKs revenues as bulk of the companys inventory is situated in Hyderabad, it is mitigating the same by expanding into other cities. This should start bearing fruit over the next 24-36 months.

Revenues to get a boost from Chennai, new rooms at Taj Deccan & shopping arcade at Taj Krishna...

We re-iterate our BUY recommendation with a one year price target of Rs220...

At the CMP of Rs151, the stock is trading at a P/E of 8.9x its FY10E EPS of Rs17. A wide product portfolio, stable operations in a rapidly growing market (Hyderabad), continuous augmentation of inventory contributed by the expansions in Chennai, Begumpet (Hyderabad) & Amritsar and visibility of growth in revenues impart confidence in the outlook for TAJGVK. However, the aggressive capex phase it has embarked upon is accompanied by execution risk. We remain bullish on the near term prospects of the company and reiterate our BUY recommendation on the stock, while maintaining our price target of Rs220 over a 12 month investment perspective.

Company description TAJGVK Hotels & Resorts Ltd is promoted by the GVK group of Hyderabad, with the Tata Groups Indian Hotels Co. Ltd. acting as a strategic equity partner. Till recently, the companys operations were limited to Hyderabad, but it is now expanding in cities like Chandigarh, Chennai, Amritsar & Kodaikanal.
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Financial Results for the quarter & year ended 31 March 2008 (Standalone)
Particulars (Rs Mn) Net Sales Total Expenditure Materials Staff Cost Fuel and Power Other expenditure Operating profit Other Income PBIDT Interest Depreciation PBT & extra-ordinary items Provision for current tax Provision for deferred tax Provision for FBT Net Profit Equity Capital (F.V. Rs 2) Reserves (excl. rev. res.) EPS (Rs) Book Value (Rs) OPM (%) NPM (%) Exp. (% of Net Sl.) Raw materials (adj.) Staff costs Power fuel and light Other expenses 7.4 13.6 4.4 24.7 7.9 12.5 3.5 26.4 8.2 13.7 4.9 25.9 8.5 13.1 4.9 26.6 Quarter Ended 31/03/08 714 358 53 97 31 176 356 3 359 8 38 313 110 2 1 200 125 3.2 49.9 28.1 31/03/07 678 341 54 85 24 179 336 7 343 7 28 308 115 5 1 187 125 3.0 49.6 27.6 7.0 4.5 5.4 36.8 1.6 Gr % 5.4 4.8 (1.5) 14.2 31.3 (1.3) 5.9 31/03/08 2,575 1,355 212 352 125 666 1,220 16 1,235 28 124 1,083 367 9 3 704 125 2,204 11.2 37.2 47.4 27.4 Year Ended 31/03/07 2,429 1,291 200 319 118 654 1,139 13 1,157 31 124 1,002 367 16 2 632 125 1,734 10.2 29.7 46.9 26.2 10.6 6.8 (9.7) 0.4 8.1 Gr % 6.1 5.4 2.9 7.9 6.5 4.8 6.8

Median PE v/s Daily PE

36 27 18 9 0 Apr-04 Daily PE Median PE

PE Band
400 300 200 100 0 Apr-04
30x 23x 16x 9x

Apr-05

Apr-06

Apr-07

Apr-08

Apr-05

Apr-06

Apr-07

Apr-08
7

Year Ended March (Figures in Rs mn) Income Statement Revenues 2005 1,155 2006 1,887 2007 2,429 2008 2,575 2009E 3,159 2010E 3,782

Growth (%)
Total Expenditure Operating Profit Interest & dividend income EBIDT (-) Interest (-) Depreciation PBT & extraordinary items (-) Tax provision Net Profits

31.7
722 433 6 439 13 69 357 136 221

63.4
1,046 842 6 848 40 109 700 237 463

28.7
1,291 1,139 13 1,152 31 124 997 365 632

6.0
1,355 1,220 16 1,235 28 124 1,083 379 704

22.7
1,616 1,542 17 1,559 80 199 1,280 437 843

19.7
1,906 1,876 20 1,896 102 213 1,580 513 1,067

Growth (%)
Fully diluted Eq. sh. O/s (mn no) Book Value (Rs) Basic EPS (Rs) Diluted EPS (Rs)

73.7
62.7 19.1 3.5 3.5

109.4
62.7 24.2 7.4 7.4

36.6
62.7 29.7 10.1 10.1

11.4
62.7 37.2 11.2 11.2

19.7
62.7 46.7 13.4 13.4

26.6
62.7 59.6 17.0 17.0

Balance Sheet

2005 125 1071 1,197 770 46 2,013 1780 43 140 51 2,013

2006 125 1,391 1,516 858 65 2,439 2,139 122 140 38 2,439

2007 125 1,734 1,860 734 81 2,674 2,697 (50) 27 2,674

2008E 125 2,204 2,329 820 89 3,238 3,057 165 17 3,238

2009E 125 2,805 2,930 1,180 109 4,219 4,032 181 7 4,219

2010E 125 3,614 3,740 1,250 155 5,145 4,883 254 7 5,145 8

Equity Share Capital Reserves & Surplus

Net worth Total Debt Deferred Tax liability Capital Employed Fixed Assets Net current assets Investments Misc exp. Total Assets

Year Ended March (Figures in Rs mn) Cash Flow Statement PBT & extraordinary items Depreciation Interest & dividend inc. Interest paid Misc Exp W/off Tax paid (Inc) / Dec in working capital Cash from operations Net capital expenditure Net investments Interest recd Cash from investing activities Change in debt Dividend paid Interest paid Cash from financing activities Inc/Dec. in cash 2005 357 69 (0) 13 13 (291) 160 (486) (140) (626) 488 (21) (13) 454 (11) 2006 700 109 (1) 40 12 (248) 612 (469) (469) 90 (64) (40) (15) 128 2007 997 124 (5) 31 11 (314) (100) 744 (348) (348) (122) (141) (23) (287) 109 2008E 1,083 124 (16) 28 10 (370) 13 873 (484) 16 (468) 86 (235) (28) (177) 228 2009E 1,280 199 (17) 80 10 (417) 166 1,302 (1,174) 17 (1,157) 360 (242) (80) 38 183 2010E 1,580 213 (20) 102 (467) 59 1,467 (1,065) 20 (1,045) 70 (258) (102) (290) 132

Key Ratios EBIDT (%) ROACE (%) ROANW (%) Sales/Total Assets (x) Debt:Equity (x) Current Ratio (x) Debtors (days) Inventory (days) Net working capital (days) EV/Sales (x) EV/EBIDT (x) P/E (x) P/BV (x)

2005 38.0 7.7 19.7 0.6 0.6 1.1 11 8 14 8.7 23.0 42.9 7.9

2006 44.9 10.3 34.1 0.8 0.6 1.2 14 9 24 5.3 11.9 20.5 6.3

2007 47.4 12.4 37.4 0.9 0.4 0.9 9 9 (8) 4.1 8.7 15.0 5.1

2008E 48.0 14.2 33.6 0.8 0.4 1.2 11 10 23 3.8 7.9 13.5 4.1

2009E 49.4 12.3 32.1 0.7 0.4 1.2 9 10 21 3.2 6.4 11.2 3.2

2010E 50.1 11.2 32.0 0.7 0.3 1.3 11 10 25 2.6 5.2 8.9 2.5 9

Team
Equity Desk R. Baskar Babu - Head - Equity Broking baskarb@pinc.co.in 91-22-66186465 Gealgeo V. Alankara - Head - Institutional Sales alankara@pinc.co.in 91-22-66186466 Sachin Kasera - Co-Head - Domestic Equities sachink@pinc.co.in 91-22-66186464 Sailav Kaji - Head - Derivatives & Strategist sailavk@pinc.co.in 91-22-66186344 Ashwani Agarwalla - Agro Products /Fertilizers ashwania@pinc.co.in 91-22-66186482 Abhishek Gangwani -Associate - Electronics / Hardware abhishekg@pinc.co.in 91-22-66186385 Naveen Trivedi - Associate - Speciality Chemicals naveent@pinc.co.in 91-22-66186384 Abhinav Bhandari - Associate - Real Estate / Construction abhinavb@pinc.co.in 91-22-66186371 Anand Rajgarhia - Associate - Shipping / Logistics anandr@pinc.co.in 91-22-66186377

Research Sameer Ranade - Capital Goods / Utilities sameerr@pinc.co.in 91-22-66186381 Sujit Jain - Real Estate / Construction sujitj@pinc.co.in 91-22-66186379 Amol Rao - Hospitality / Pipes / Packaging amolr@pinc.co.in 91-22-66186378 Nirav Shah - Sugar / Textiles niravs@pinc.co.in 91-22-66186383 Rishabh Bagaria - Auto / Auto Ancilliary rishabhb@pinc.co.in 91-22-66186391 Ruchir Desai - Technology ruchird@pinc.co.in 91-22-66186372 Syed Sagheer - Logistics / Light Engineering syeds@pinc.co.in 91-22-66186390 Chandana Jha - Banking / Financial Services chandanaj@pinc.co.in 91-22-66186398 Rahhul Aggarwal - Metals rahhula@pinc.co.in 91-22-66186388 Dipti Solanki - Media diptis@pinc.co.in 91-22-66186392 Faisal Memon - Metals faisalm@pinc.co.in 91-22-66186389

Sales: Anil Chaurasia 91-22-66186483 Sapna Mehta 91-22-66186485 Alok Doshi 91-22-66186484 Sundeep Bhat 91-22-66186486

Dealing: Chandrakant Ware / Shivkumar R / Ashok Savla idealing1@bloomberg.net 91-22-66186326 Raju Bhavsar / Manoj Parmar / H Prajapati / Pratiksha idealing1@bloomberg.net 91-22-66186323

Directors Gaurang Gandhi gaurangg@pinc.co.in Hemang Gandhi hemangg@pinc.co.in Ketan Gandhi ketang@pinc.co.in

91-22-66186400

91-22-66186400

91-22-66186400

Rakesh Bhatia - Head Compliance rakeshb@pinc.co.in 91-22-66186400

10

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