Mutual fund query for single and retired:: Business Line

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Good performance as of now… • Aban Offshore :: ICICI Securities, report

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Aban Offshore: Seeking contracts in a tough operating environment :: Kotak Sec, report

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Seeking contracts in a tough operating environment. Aban Offshore reported weaker-than-expected results in 3QFY15 reflecting lower utilization of fleet due to (1) survey/maintenance of Aban Abraham and (2) refurbishment of Aban IV. A lower crude price environment and subdued utilization of offshore rigs do not augur well for day-rates in the near term, which will pose serious risks to Aban’s profitability and free cash flows, as two-thirds of its fleet will be seeking contracts/renewals in CY2015.

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Operationally good performance… • Aban Offshore :: ICICI Securities, report link

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Technicals: Aban Offshore, Anant Raj, Gateway Distriparks, PTC, SCI, Tata Metaliks : Business Line

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I have purchased Aban Offshore at ₹820 and wish to hold it. Kindly let me know the short-, medium- and long-term outlook.

B. Parab

Aban Offshore (₹732.6): Following a sharp fall in early July this year, the stock found support at ₹750 and bounded up. However, this up-move failed to turn into an uptrend.

After hitting resistance at around ₹800 in early August, the stock started to decline and decisively breached the key support at ₹750. This level has now turned into a key resistance level. Only a strong breakthrough of ₹750 will take the stock higher to ₹800 and then to ₹830 in the medium term. Next resistance above ₹830 is pegged at ₹940.

But a decisive fall below the stock’s immediate support at ₹700 will have an adverse effect and the stock can decline to ₹600 and then ₹550 in the medium to long term. In this scenario, exit the stock and buy at lower levels.

Subsequent supports below ₹550 are placed at ₹500 and ₹450.

I hold Anant Raj at ₹70. Shall I hold for the long term?

Biju P

Anant Raj (₹57.7): The stock of Anant Raj is in a long-term downtrend; only a strong move above ₹150 will bring in bullish momentum. But this is unlikely to happen as the stock’s significant resistance at ₹100 is limiting rallies. In early June 2014, the stock encountered a hurdle around ₹85 and began to decline. It has been on a short-term downtrend since then. However, the stock is currently testing the 200-day moving average and an important support at ₹54, which can provide a near-term breather.

A fall below this level will strengthen the downtrend and drag the stock down to ₹50 and then to ₹42 levels in the medium term. Exit the stock on rallies. Immediate resistances are at ₹65 and ₹74 levels.

Is it better to hold shares of Gateway Distripacks purchased at ₹240 or sell? Please give the technical outlook.

Ajit

Gateway Distriparks (₹255): Though the stock breached the key resistance at ₹245 in the previous week after testing it for over two months, its indicators are projecting a bleak medium-term outlook. Having stuck to the stock for many years, it is advisable that you exit the stock now and re-enter at a later stage.

The stock has important support band between ₹220 and ₹230; a decisive fall below this will pave way for a downmove to ₹180. Next support is at ₹155. Important resistances are at ₹261 and ₹270.

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Aban Offshore Strong fleet status :: Prabhudas Lilladher

! Results in‐line: Aban’s Q4FY13 results were in line with expectations, with
revenues at Rs9.6bn, 19.5% YoY and 5.6% sequential growth. Margins stood at
52.4% as against 53.63% in Q3FY13 and 52.4% in Q4FY12. On account of lower
ETR, PAT grew by 91.6% QoQ and declined 24.3% YoY. During the quarter, all
vessels, with the exception of Tahara, were working.
! Fleet Status: In March 2013, Aban Ice and DDI went off-contract. Of these, DDI
has already been re-contracted and will commence operations from July 2013
onwards. Aban Ice is currently being marketed. Further, Aban 7 completed its
contract in the month of May 2013 and is also being marketed.
! New Contracts: DDII, IV & V, which were contracted in the Middle East and
whose contracts were to expire in September 2012, have all been re-contracted
with the same parties. DDVII, whose contract ended in December 2012, got into
another contract immediately in Mexico for a period of 1005 days at a healthy
operating day rate of US$151K. DDI was also contracted at a healthy rate of
US$158K for a period of 1115 days.
! Valuations: Aban currently trades at a PER of 6.9x FY14 and 5.2x FY14. Given
the strong fleet status, whereby, the risk over the next couple of years is
mitigated, we maintain our positive stance on the company and value it at 6x
FY15 which translates to Rs378.

Aban Offshore EBIDTA in line-Higher tax drag net profit:: Emkay

n 3Q13 EBIDTA at Rs4.9 bn (-2.6% yoy) came in line. Higher
tax rate @48% (vs estimate of 26%) drags APAT at Rs390 mn
(-46.6% yoy) below est (Rs689 mn)
n Refinance of INR debt of ~USD350 on track-see potential
saving of USD25 mn. USD140mn already done @ LIBOR+6%
bps implying ~8% savings. Balance by 1QFY14
n DD-2,4,5 contract/day rate renewal (though on track) delayed
by a quarter resulting in incremental revenues loss for
4QFY13 leading to cut in FY13E/14E EBIDTA estimate by -
3.5%/-1.7% while EPS est see higher cuts at -27%/-10%
n Contract renewals & debt refinance remains key triggers to
improve cash flow visibility & accelerate de-leveraging.
Possible QIP of up to USD100 mn leading to high dilution
could be a stock dampener. ACCUMULATE
Margins contract 420bps- However higher revenues lead to in line EBITDA
Aban’s Q3FY13 EBITDA at Rs4.87bn, -2.6% yoy came in line with estimates. However
despite higher than estimated revenues of Rs9.1bn, +5% yoy (vs est of Rs8.6bn)
margins at 53.6% (vs est of 57.7%), declined 420bps yoy. This was due to 1. Higher preoperating
expenses at the start of renewed contracts for Aban7, DD7 2. Rig DD-I
operated for just 15days during the quarter resulting in higher fixed costs with almost no
contribution to revenues. As a result total expenses increased 15.4% yoy resulting in
420bps contraction in margins.
Higher tax rate drags APAT below estimates
Despite in line EBITDA, APAT at Rs390mn, -46.6% yoy and -45.2% qoq , came in lower
than estimates of Rs690mn led by substantially higher tax rates at 41.5% resulted in
below estimated profit for the quarter. Tax expenses also included one time provisions
made by the company for withholding tax for earlier years. Reported net profit came in at
Rs291mn, -60.3% yoy and -41% qoq. Interest charges at Rs2.99bn increased +16.6%
yoy, due to higher coupon rate for Aban’s refinanced bond issues (1st Bond issued
refinance at coupon of 12% and 2nd bond redemption at 14.25% vs earlier 9.3%).
Refinance of INR debt of ~USD350 on track - USD 140mn INR debt already
refinanced, implying ~800bps savings
Aban’s plan to reduce interest costs by refinancing its high cost rupee term loan of Rs18
bn (~USD350mn with interest rate of 13-14%) with ECB (having interest rate of ~7-8%)
remains on track. Out of this sum, USD 140mn has already been refinanced at interest
rate of LIBOR +6%, Implying a saving of ~800 bps, higher than our expectations (we
were building in 650 bps saving). Company has got credit approval for another USD 95
mn (out of the remaining USD 210 mn) from domestic banks, and the documentation
work is going on currently while it is waiting for approvals for the remaining USD115mn
amount. The company is targeting potential saving of 700 bps annually leading to total
savings of USD25mn.

Aban Offshore- Higher taxes dampen profits:: Prabhudas Lilladher,

! Broadly in‐line, higher taxes dampen PAT: Aban’s revenues stood at Rs9bn, 5%
YoY growth and 29% sequential growth. Margins were steady at 53.6% as
against 57.8% in Q3FY12 and 51.3% in Q2FY13. On account of a higher effective
tax rate of 61%, PAT disappointed at Rs318m, a decline of 60.3% YoY and 41.0%
QoQ. Tax provisioning was high on account of certain contracts coming to an
end which requires adjustments based on actual.
! Fleet status: Of the five rigs that were due to be off-contract in October 2012,
three have been extended with the same customers. However, the pricing is yet
to be determined (DD2,4 & 5).
DD3 has been contracted for a three-year term, with Petrobras at a day rate of
US$1,39,000, 15% lower than the earlier day-rate. DD1 is currently working on a
short-term contract till March 2013. Besides, the company is also negotiating
another long-term contract for the same. However, the vessel did not work
during Q3FY13. Aban Ice’s contract with ONGC has been extended up to March
2013. The only vessel which remains uncontracted at this point is Tahara.
! Valuations: The stock trades at a PER of 7.9x FY14E and 4.4x FY15E. We have
valued the stock at Rs5x FY15E to arrive at our target price which gives us a
value of Rs398. On the basis of EV/EBITDA, the stock trades at 7.2x FY14E and
6.2x FY15E. We maintain ‘Accumulate’ on the stock.

Aban Offshore Triggers lined up - Upgrade to Accumulate:: Emkay

n 6 rigs due for renewal in FY13. Aban confident of contract
renewals and better pricing for 4 rigs. Revenue visibility
expected to improve to 96%/86% for FY13/14 with renewals
n Interest burden to come down as Aban plans repayment of
Rs10 bn of debt in FY13 and looking at refinancing INR debt
of ~Rs18bn leading to savings of Rs1 bn in interest cost
n Improved rig pricing and lower interest cost pressure to
improve cash flows driving increased pace of de-leveraging
of Aban’s stretched balance sheet
n Multiple triggers by way of renewal of rig contract and lower
interest cost to help stock out-performance. Reasonable
FY14E valuation at PER-3.5X, P/B-0.6 & EV/E-6.2X to provide
downside protection- Upgrade to ACCUMULATE- TP-Rs525

Aban Offshore- Interest charges mar profits: Prabhudas Lilladher,

􀂄 Operational performance in line: Aban’s operational performance was in line
with expectations, with top-line at Rs8.5bn (16.2% YoY growth and 5.8% QoQ
growth). The depreciation in rupee was the major contributor to the top-line
growth. Margins stood at 59.5% as against 62% in Q1FY12 and 52.5% in Q4FY12.

Aban Offshore (Rs 434.5): SELL::Business Line

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We recommend a sell in the stock of Aban Offshore from a short-term perspective. It is seen from the charts of the stock that after encountering significant intermediate-term resistance at around Rs 550 in early and late February, the stock resumed its primary downtrend. This reversal was helped by negative divergence in daily relative strength index and daily price rate of change indicator. Since then the stock has been on a short-term downtrend.

After repeatedly testing the key support at Rs 450 from late February, the stock broke through this support by tumbling seven per cent on Thursday. The stock is hovering well below its 21- and 50-day moving averages. Its daily RSI has entered into the bearish zone from the neutral region and weekly RSI is declining in the neutral region. The daily moving average convergence divergence indicator has been slopping downwards in line with the stock price from late February. This indicator has entered into the negative territory indicating downward momentum.

We are bearish on the stock from a short-term perspective. We expect its short-term downtrend to continue and touch our price target of Rs 421 or Rs 408 in the forthcoming trading sessions. Traders with short-term perspective can consider selling the stock while maintaining tight stop-loss at Rs 447.

Sell Aban Offshore; Target : Rs 430 ::ICICI Securities

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L o w e r   E B I T D A   m a r g i n ,   h i g h e r   i n t e r e s t   c o s t
d e n t s   b o t t o m l i n e …
Aban Offshore (Aban) reported a mixed performance for Q3FY12. Though
revenue was higher by 9% than I-direct estimates at | 865.9 crore (QoQ
growth of 13.5%), net profit was lower by 19% than I-direct estimate of
| 90.6 crore at | 73.1 crore (QoQ decline of 7.7%). Revenues have been
higher than our estimates mainly on account of deployment of Aban V
and Aban VII during the quarter, which we had factored to be deployed in
February, 2012. EBITDA increased by 9% QoQ to | 500.7 crore but the
EBITDA margin declined QoQ by 232 bps to 57.8%. The decline in
EBITDA margin on a QoQ basis has been due to higher staff costs (up
16% to | 93.1 crore) and increased expense on rental for machinery (up
by 142% to | 21.2 crore) and higher expenses on repairs & maintenance
(up by 231% to |13.3 crore). Interest and depreciation have increased by
12% and 8%, respectively, which has further subdued the net profit.
Increasing interest cost as percentage of EBITDA, which has risen from
43.7% in Q1FY11 to 51.3% in Q3FY12 has been denting the profitability of
Aban and is a cause for concern.
ƒ Fleet deployment status
During Q3FY12, Aban V was deployed for three years at ~ US$120,000
per day while Aban VII secured a  contract of eight months at
~ US$55,000 per day. Aban II is currently under dry docking and is
expected to be deployed in Q4FY12. FPU Tahara has yet to secure an
order and remains idle. Currently, 16 out of 18 vessels are on contract.
The key parameter to watch in FY13 would be the renewal of contracts
for eight rigs that are going off-contract. Four of the rigs due for renewal
of contracts are currently  working  in  Iran  and  have  day  rates  at  a
premium to current day rates in other regions. Relocating these rigs to
newer geographies may fetch lower rates leading to a downside risk.
V a l u a t i o n
At the CMP of | 495, the stock is trading at 5.0x FY13E EPS of | 99.3 and
0.81x FY13E book value of | 614. We have valued the stock at 0.70x
FY13E book value to arrive at a price target of | 430 and recommend a
SELL rating.

Company Update Aban Offshore Reco: ACCUMULATE : Target Price: Rs 485 ::Emkay

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Company Update

Aban Offshore Reco: ACCUMULATE CMP: Rs 440 Target Price: Rs 485 Bond redemption comes at a steep cost ·      Aban redeems bonds worth $160 mn - financed through internal accruals (USD40 mn) & fresh bond issue (USD120mn) Coupon rate at 12% significantly higher than estimates of 9% ·      Aban’s next repayment obligation of USD157 due in Mar-12 could also be on similar lines – Downgrade FY13 EPS by 11.4% ·      Though Aban boasts of contracted revenue backlog of ~$1.9 bn over FY12-15E, revenue visibility stands at 65% for FY13 as 6 jack up rigs are due for contrat renewal in H2FY13 ·      Lower target to Rs485 (Rs522 earlier) led by the earnings downgrade. We also lower rating from BUY to ACCUMULATE led by sharp 30%+ run up in the stock price

Hold Aban Offshore; Target :Rs 456 :ICICI Securities,

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B o n d s   r e d e e m e d ,   a l b e i t   a t   a   h i g h e r   c o s t …
Aban Offshore has redeemed bonds worth US$160 million through a mix
of internal accrual (US$40 million) and a fresh issue of bonds (US$120
million). The coupon rate for the  new bond issue is 12% against the
earlier bonds, which had a coupon rate of 9%. Tight liquidity conditions
across the globe have resulted in the company having to pay a higher
coupon rate to secure the refinance. Further, Aban has next repayment
obligation to the tune of US$157 million in March 2012, which could be
on terms similar to the current one.
ƒ Fleet utilisation –key parameter to watch
Aban has four assets, which are without contract. Of these, Aban V and
Aban VII are under marketing while Aban II and FPU Tahara are expected
to be deployed in Q4FY12. The key parameter to watch for Aban would
be the deployment of idle assets. It is of paramount importance that Aban
improves its fleet utilisation. Otherwise, servicing its interest and debt
repayment obligations would be a challenge.
ƒ Higher coupon rate to negatively impact FY13E EPS
We have conducted a sensitivity analysis to gauge the impact on Aban’s
FY13E EPS due to higher coupon rate on refinancing of debt due in March
2012. We have considered three scenarios wherein the company repays
20%, 10% and 0% of the debt to be repaid in March 2012 and refinances
the remaining at the higher coupon rate of 12%. In January 2012, the
company has also refinanced debt amounting to | 612 crore at a higher
cost. We have also factored the same in our sensitivity analysis.
Cumulatively, this would negatively impact the FY13E EPS in the range of
4.6% to 8.4%. We have not revised  our estimates as we await further
details on the refinancing. We would review our estimates after a detailed
interaction with the management post the Q3FY12 results.
V a l u a t i o n
At the CMP of | 438, the stock is trading at 3.8x FY13E EPS of | 116.7 and
0.67x FY13E book value of | 651. We have valued the stock at 0.70x
FY13E book value to arrive at a price target of | 456 and recommend a
HOLD rating. Existing investors can also continue to hold the stock.

Sizzling Stocks: Aban Offshore ,IRB Infrastructure Developers ::Business Line

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Sizzling Stocks: Aban Offshore (Rs 441.1)

Aban Offshore blasted its way higher right from the outset of the week. It gained 10 per cent on Monday and then went on to build on these gains to close the week more than 20 per cent higher. The stock has formed a solid medium-term base between Rs 320 and Rs 330. It has tested this level thrice since last August and is currently trying to move higher.

Short-term impediments will be at Rs 480, Rs 525 and Rs 570. Short-term investors can divest their holding if the stock reverses from any of these levels. Key medium-term hurdles are at Rs 720 and Rs 835. Investors should venture into the stock only if it gets past Rs 835. Inability to get past this level will result in the stock remaining volatile in the range between Rs 300 and Rs 850 over the ensuing months. Stop for investors can be at Rs 300.

IRB Infrastructure Developers (Rs 161.9)

IRB Infra also turned red hot this week, gaining 14 per cent. The prospects of the stock were looking quite bleak till the first week of January when it recorded a 31-month low at Rs 122. Its fortunes, however, revived since then and the stock is up 26 per cent from this trough. This trough can now act as the stop-loss for investors. Those with higher risk taking ability can also buy in declines with the same stop.

Near-term resistances for the stock would be at Rs 170 and Rs 195. Medium-term view will turn positive only on a close above Rs 200. Else the outlook for the stock will remain in doldrums. Long-term resistances are at Rs 240 and Rs 315.

Sizzling Stocks: Aban Offshore, Steel Authority of India:: Business Line

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 Aban Offshore (Rs 345.6)

Aban Offshore nosedived 12.4 per cent accompanied by above-average weekly average volumes in the previous week. However, it is currently testing its key medium-term support band between Rs 330 and Rs 340, from with the stock had rebounded in mid August and early October this year. An upward reversal from the aforesaid support band can take the stock higher to Rs 390 or to Rs 430 in the medium-term. Key resistance above Rs 430 is at Rs 500. The stock is trading well below its 21- and 50-day moving averages. Both its daily and weekly indicators are featuring in the bearish zone.

Nevertheless, breach through the support band will reinforce the long-term downtrend and drag the stock down to Rs 300 and then to Rs 225 in the ensuing months. Investors should avoid initiating fresh long position if the stock breaches the key support band as the stock can turn volatile and decline steeply.

Steel Authority of India (Rs 82.2)

SAIL continued its decline and plunged 12.2 per cent with above average volumes last week. However, the stock is just trading above its significant longer-term support zone between Rs 74 and Rs 80.

The stock has been on a long-term downtrend ever since peaking out from its April 2010 peak of Rs 258. A reversal up from the stock's significant longer-term support zone will take the stock northwards to Rs 90 and then to Rs 100 in the medium-term. On the other hand, conclusive penetration of the key support will pave way for a decline to Rs 65 and then to Rs 55 (November 2008 low) in the medium-term.

Aban Offshore (ABAN.BO) 2Q: Operationally Below; Expect A 2H Pick Up  Citi Research

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Aban Offshore (ABAN.BO)
2Q: Operationally Below; Expect A 2H Pick Up
 2Q below — PAT at Rs792.5m (-11% qoq, +5% yoy) was below estimates primarily
due to: (1) lower than expected qoq increase in revenues (1Q included cUS$5-6m of
one-off mobilization fee for Aban Abraham), (2) lower EBITDA margins of 60% (62% in
1Q), and (3) higher interest/depreciation due to INR weakness (not much of a concern,
however, given revenues, costs, debt are all largely US$-denominated).
 Expect pick up in 2H — We expect Aban’s revenues and profitability to pick up in 3-
4Q, led by: (1) commencement of the new 3-yr ONGC contract for Aban III by Nov-11E
(idle in 2Q), (2) possible commencement of a new contract for Aban V (idle in 2Q, new
contract yet to be awarded), and (3) fresh contribution from Aban VII (idle in 2Q, has
begun a short-term contract with GSPC, and has other short-term contracts in place for
the next year). Contribution from Tahara is expected to go down as it remains idle due
to approval issues, though the overall impact would be lower given lower margins.
 Rig market tightening — As per Citi analyst Horng Han Low (see ‘Singapore Drill Bits:
More Resilient to Headwinds than in 2009 Downturn’ dated Nov 2), rig day rates have
been trending higher YTD and are likely to continue rising in 2012, based on comments
by offshore drillers and industry observers. He believes that while concerns remain
over the number of newbuild completions scheduled in 2013 (31 jack-ups, 24
drillships), incoming supply will place a cap, rather than a drag, on day rates.
 Deleveraging yet to play out — Earlier this year, Aban had cUS$400-450m of bullet
payments on its debt due in the Jan-Apr’12 period. This is now down to cUS$340m,
with cUS$100m having been refinanced. We remain confident of Aban’s ability to
refinance the balance amount, and the next few months would be critical in this regard.
Any news flow on this front would be a key stock driver, in our view, bringing to fore
Aban’s deleveraging argument, which we believe remains intact. We reiterate Buy with
a Rs730 TP, reducing FY12-14E earnings by 3-8% to account for 1H performance and
new contract announcements. Net debt currently stands at US$2.72bn (US$2.79bn as
on Mar-11). We forecast operating cash flow of US$180-220m over FY12-14E.

Aban Offshore Lower Standalone profitability drags Q2FY12 nos BUY ::Emkay

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Aban Offshore

Lower Standalone profitability drags Q2FY12 nos

BUY

CMP: Rs436                                        Target Price: Rs522

---

n     Q2FY12 EBITDA at Rs4.6bn(-17.5% yoy ) below est of Rs4.8bn dragged by lower standalone proftability (standalone EBIDTA down 58% qoq) due to lower operating days for Aban IV

n     Standalone net loss of Rs0.7bn and higher consolidated depreciation & interest charges drag Q2FY12 APAT to Rs0.79bn (-15.5% qoq) -below estimates

n     Lower revenues from standalone business leads to earnings downgrade for FY12E/13E by -5.3% /-7.6%. We also lower our TP to Rs522 (Rs580 earlier) to factor in earnings downgrade

n     Only 2 rigs idle-see strong cash flow visibility -USD 400 mn CFO over FY11-13, leading to accelerated de-leveraging- Valuation at 5.9X FY13 EV/E & .6X P/B remain attractive-BUY

Aban Offshore: Weak results: Kotak Sec,

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Aban Offshore (Aban)
Energy
Weak results. Aban reported 2QFY12 EBITDA (consolidated) at `4.6 bn (+1.2% qoq),
6.6% lower than our estimate of `4.9 bn led by likely lower utilization levels; revenues
were at `7.6 bn (+4.3% qoq), 6.8% below our estimate of `8.2 bn. Net income at
`793 mn (-10.5% qoq) was further impacted by higher-than-expected interest cost and
depreciation. We maintain our BUY rating with a revised DCF-based target price of
`635 (`670 previously) given inexpensive valuations.

Hold Aban Offshore; Target : Rs 456 ::ICICI Securities

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E n h a n c e d   f l e e t   u t i l i s a t i o n   t o   d r i v e   g r o w t h …
Aban Offshore (Aban) reported a below estimate performance on both
the revenue as well as profitability front. On a QoQ basis, revenues
reported a 4% increase to | 762.6 crore (I-direct estimate: | 811.5 crore)
while net profit declined by 10.7% | 79.3 crore (I-direct estimate: | 112.9
crore). Aban’s EBITDA margin declined on a QoQ basis by 257 bps to
60.2% (I-direct estimate: 63.6%). The lower-than-expected revenues can
be attributed to lower fleet utilisation owing to lesser operating days for
FPU Tahara and Aban Abraham. The decline in EBITDA margin on a QoQ
basis has been due to higher staff costs (up 5% to | 80.3 crore) and
increased expense on insurance (up 20% to | 36 crore) due to a rise in
insurance premiums. Interest and depreciation have increased by 6% and
8%, respectively, which has further led to subdued net profit.
ƒ Fleet utilisation to improve
During Q2FY12, Aban V and Aban VII were under marketing while Aban
3, which has secured a contract from ONGC, was under refurbishment
and is expected to be deployed by the end of November 2011. Aban II
and FPU Tahara are also expected to be contracted by Q4FY12. With the
deployment of these assets, fleet utilisation is expected to improve from
H2FY12 onwards.
ƒ Earnings revision
We have revised earnings estimates for Aban to factor the impact of a)
lower-than-expected performance in H1FY12, b) expected higher fleet
utilisation in H2FY12 and FY13E c) change in exchange rate assumptions
for FY12E and FY13E and d) some other minor changes. We have revised
our earning estimate for FY12E down by 19% to | 93.8 and raised FY13E
earning estimate by 43.7% to | 116.7.
V a l u a t i o n
At the CMP of | 428, the stock is trading at 3.7x FY13E EPS of | 116.7 and
0.66x FY13E book value of | 651. We have valued the stock at 0.70x
FY13E book value to arrive at a price target of | 456 and recommend a
HOLD rating. Existing investors can also continue to HOLD the stock.