1QFY2014 Result Update | Mining

August 8, 2013

NMDC
Performance Highlights
Quarterly highlights (Standalone)
Particulars (` cr) Net sales EBITDA % margin Adj. PAT 1QFY14 2,871 1,971 68.7 1,638 1QFY13 2,840 2,302 81.0 1,906 % chg (yoy) 1.1 (14.4) (1238)bp (14.1) 4QFY13 3,204 2,156 67.3 1,871 % chg (qoq) (10.4) (8.6) 139bp (12.4)

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Mining 39,627 (20,512) 1.1 201/93 412,981 1 18,665 5,519 NMDC.BO NMDC@IN

`100 `123
12 months

Source: Company, Angel Research

NMDC reported better than expected 1QFY2014 results both on top-line and profitability front due to better-than-expected realizations. We maintain
Buy on the stock due to its inexpensive valuations. Robust operational performance: NMDCs net sales increased by 1.1% yoy to

`2,871cr (above our estimates of `2,695cr) mainly due to higher volumes which increased 6.8% yoy to 7.3mn tonne, although the same was partially offset by lower realizations. Iron ore realization decreased 5.6% yoy to `3,904/tonne, but it was above our estimate. EBITDA/tonne slumps on lower realizations: The EBITDA/tonne decreased by 19.8% yoy to `2,715 due to lower realizations. The companys depreciation expenses grew by 10.9% yoy to `36cr and there was an exceptional item of `66cr relating to penalty and contribution towards the Special Purpose Vehicle (SPV) created for Karnataka illegal mining cases. Excluding this exceptional item, the adjusted net profit decreased by 14.1% yoy to `1,638cr (above our estimate of `1,540cr).
Outlook and valuation: NMDCs stock price has corrected sharply over the past one year. Nevertheless, a strong balance sheet, presence in sellers market (iron ore), low cost of production, high-grade mines, long mine life and high dividend yield (7.0% at CMP) make NMDC an attractive bet at the current levels. Valuing the stock at 3.5x FY2015E EV/EBITDA, we derive a fair price of `123 and recommend Buy on the stock. Key financials (Standalone)
Y/E March (` cr) Net sales % chg Net profit % chg FDEPS (`) OPM (%) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) FY2012 11,261 (1.0) 7,266 11.8 18.3 79.3 5.5 1.6 33.3 40.1 1.7 2.1 FY2013E 10,704 (4.9) 6,342 (12.7) 16.0 68.9 6.2 1.4 24.4 27.7 1.6 2.4 FY2014E 10,718 0.1 6,136 (3.2) 15.5 66.6 6.5 1.3 21.2 24.1 1.6 2.4 FY2015E 11,514 7.4 6,383 4.0 16.1 64.5 6.2 1.2 20.0 22.7 1.5 2.3

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 80.0 11.5 4.9 3.7

Abs. (%) Sensex NMDC

3m (6.2)

1yr 6.0

3yr 2.9 6.0

(23.0) (45.4)

Bhavesh Chauhan
Tel: 022- 39357600 Ext: 6821 bhaveshu.chauhan@angelbroking.com

Vinay Rachh
Tel: 022- 39357600 Ext: 6841 vinay.rachh@angelbroking.com

Source: Company, Angel Research: Note: CMP as of August 7, 2013

Please refer to important disclosures at the end of this report

NMDC | 1QFY2014 Result Update

Exhibit 1: 1QFY2014 performance (Standalone)

Y/E March (` cr) Net Sales Raw Material % of net sales Consumption of stores & spares % of net sales Staff Cost % of net sales Other Expenditure % of net sales Total Expenditure % of net sales Operating Profit OPM% Other Operating Income EBIDTA EBITDA margins (%) Interest Depreciation Other Income Exceptional Items Profit before Tax % of net sales Tax % of PBT Adjusted net profit
Source: Company, Angel Research

1QFY14 2,871 28 1.0 62 2.2 148 5.2 661 23.0 899 31.3 1,971 68.7 1,971 68.7 36 521 (66.0) 2,390 83.2 818 34.2 1,638

1QFY13 2,840 (5) (0.2) 54 1.9 135 4.8 354 12.5 538 19.0 2,302 81.0 2,302 81.0 33 552 2,821 99.3 915 32.4 1,906

yoy % 1.1 15.0 9.7 86.9 67.1 (14.4)

4QFY13 3,204 (65) (2.0) 100 3.1 161 5.0 852 26.6 1,048 32.7 2,156 67.3 -

qoq % (10.4) (143.1) (38.5) (8.1) (22.4) (14.2) (8.6)

FY2013 10,704 184 1.7 289 2.7 580 5.4 871 8.1 3,326 31.1 7,378 68.9 -

FY2012 11,261 23 0.2 257 2.3 529 4.7 406 3.6 2,336 20.7 8,925 79.3 8,925 79.3 12 130 2,016 10,811 96.0 3,494 32.3 7,266

yoy % (4.9) 711.3 12.6 9.6 114.4 42.4 (17.3)

(14.4) 10.9 (5.7) (15.3) (10.7) (14.1)

2,156 67.3 13 39 547 (406.0) 2,245 70.1 780 34.8 1,871

(8.6) (6.0) (4.8) 6.4 4.8 (12.4)

7,378 68.9 13 139 2,226 9,465 88.4 3,123 33.0 6,342

(17.3) 6.5 6.4 10.4 (12.4) (10.6) (12.7)

Exhibit 2: 1QFY2014 Actual vs Angel estimates

(` cr) Net sales EBITDA EBITDA margin (%) PAT
Source: Company, Angel Research

Actual 2,871 1,971 68.7 1,638

Estimates 2,695 1,806 67.0 1,540

Variation (%) 6.5 9.2 167bp 6.4

August 8, 2013

NMDC | 1QFY2014 Result Update

Result highlights
Volumes jump 6.8% yoy
NMDCs net sales increased by 1.1% yoy to `2,871cr (above our estimate of `2,695cr) mainly due to higher volumes which increased 6.8% yoy to 7.3mn tonne. However, its realizations decreased 5.6% yoy to `3,904/tonne. Exhibit 3: Sales volume increases 6.8% yoy
9 8 7 7.6 6.9 6.4 6.5 6.8 5.9 5.3 8.2 7.3 60 50 40

Exhibit 4: Realization decreased by 5.6% yoy

4,500 4,400 4,300 4,200 4,394 4,442 15 10 4,015 4,030 4,136 3,982 3,820 3,904 3,843 5

(mn tonnes)

(`/tonne)

6 5 4 3 2 1 0 1QFY12 3QFY12 1QFY13

30

10 0 (10) (20) (30) 3QFY13 % yoy (RHS) 1QFY14 Sales volumes

(%)

4,000 3,900 3,800 3,700 3,600 3,500 1QFY12 3QFY12

(5) (10) (15) (20)

1QFY13

3QFY13 % yoy (RHS)

1QFY14

Average realization

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 5: Net sales increased by 1.1% yoy

3,500 3,000 2,500 30.0 20.0 10.0

(` cr)

1,500 1,000 500 0 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 Net revenue (LHS) yoy change (RHS)

(10.0) (20.0) (30.0) (40.0)

Source: Company, Angel Research

EBITDA/tonne decreased by 19.8% yoy

The companys EBITDA decreased by 14.4% yoy to `1,971cr. However, the EBITDA margin contracted 1,238bp yoy to 68.7%. EBITDA/tonne decreased by 19.8% yoy to `2,715 due to lower realizations.

August 8, 2013

(%)

2,000

0.0

(%)

20

4,100

NMDC | 1QFY2014 Result Update

Exhibit 6: EBITDA/tonne decreased by 19.8% yoy

4,000 3,500 3,000 3,268 3,214 3,532 3,062 15 3,385 3,307 2,615 2,616 2,715 10 5 0 (5) (10) (15) (20) (25) (30) 1QFY12 3QFY12 1QFY13 3QFY13 1QFY14 EBITDA/tonne % yoy (RHS)

Exhibit 7: EBITDA margin stood at 68.7%

3,000 2,500 2,000 81.0 79.5 80.1 90 76.1 81.0 74.1 67.9 67.3 68.7 80 70 60

( ` /tonne)

2,500 2,000 1,500 1,000 500 0

( ` cr)

(%)

1,500 1,000 500 0 1QFY12 3QFY12 EBITDA (LHS) 1QFY13 3QFY13 1QFY14 EBITDA margin (RHS)

40 30 20 10 0

Source: Company, Angel Research

Source: Company, Angel Research

Net profit declined by 14.1% yoy

The companys depreciation expenses grew by 10.9% yoy to `36cr and there was an exceptional item of `66cr relating to penalty and contribution towards the Special Purpose Vehicle (SPV) created for Karnataka illegal mining cases. Other

income declined by 5.7% yoy to `521cr and tax rate was also higher at 34.2% in 1QFY2014 compared to 32.4% in 1QFY2013. Consequently, the adjusted net profit decreased by 14.1% yoy to `1,638cr (above our estimate of `1,540cr). Exhibit 8: Net margin stood at 57.1%
2,500 64.7 2,000 1,500 64.1 65.9 67.1 65.3 64.3 63.1 58.4 57.1 68 66 64 62 60 1,000 500 0 1QFY12 3QFY12 Net profit (LHS)
Source: Company, Angel Research

(` cr)

58 56 54 52 1QFY13 3QFY13 Net profit margin (RHS) 1QFY14

August 8, 2013

(%)

50

NMDC | 1QFY2014 Result Update

Investment rationale
Steady production volume growth during FY2013-15
NMDC aims to ramp up its production capacity to 48mn tonne by FY2015E (current capacity 32mn tonne) through increased exploration of its existing mines and development of new mines, ie Bailadila 11/B, Kumaraswamy and Deposit 10 & 11/A. However, given the anticipated low steel demand, we forecast iron ore sales volumes to increase to 30mn tonne by FY2015. We expect sales volumes to grow by 6.9% and 7.1% yoy in FY2014 and FY2015, respectively.

Exhibit 9: Iron ore capacity expansion plans

60 50
(mn tonnes)

7 7 32

48

40 30 20 10 0 Current

Bailadila 11/B Kumaraswamy Dep. 10, 11/A

Total

Source: Company, Angel Research

High dividend yield likely to act as cushion to share price

During FY2013, NMDC has stepped up its dividend payout to 44% (17% in FY2012) despite a 12.7% decline in EPS during FY2013. Given the cash-rich balance sheet, high visibility on operating cash flows, and limited capex on mine development, we opine that stepping up dividend payout is a right strategy by the company; it augurs well for minority shareholders implying a dividend yield of 6.8% at CMP. Further, with cash balance of `21,025cr (as on March 31, 2013), we expect dividend of `7/share to continue during FY2014-15.

Seeking to diversify into steel making

The Management intends to diversify its operations by moving downstream through establishing steel plants and pellet plants. Accordingly, the company aims to build an integrated 3mn tonne steel plant in Jagdalpur, Chhattisgarh. Land acquisition for the same is nearly complete, which gives comfort as land acquisition has been a major bottleneck to greenfield projects in recent times. However, we believe the steel project is not likely to be value accretive to NMDC in the initial period of operations.

August 8, 2013

NMDC | 1QFY2014 Result Update

Exhibit 10: Chhattisgarh steel project status

Capacity Capex Land Date of completion 3mn tonne per year `15,525cr Total land required: 1,934 acres. Total land acquired: 1,932 acres. Balance land is under allotment process. 42 months from Zero date i.e., receipt of all statutory clearance/approvals and placement of orders. Targeted completion period FY2015

Source: Company, Angel Research

Outlook and valuation

NMDCs stock price has corrected sharply over the past one year. Nevertheless, a strong balance sheet, presence in sellers market (iron ore), low cost of production, high-grade mines, long mine life and high dividend yield (7.0% at CMP) make NMDC an attractive bet at the current levels. Valuing the stock at 3.5x FY2015E EV/EBITDA, we derive a fair price of `123 and recommend Buy on the stock.

Exhibit 11: Key assumptions

FY2014E Sales volume (mn tonne) Average realization (US$/tonne)
Source: Angel Research

FY2015E
30 3,569

28 3,519

Exhibit 12: EPS Angel forecast vs consensus

Year (`) FY2014E FY2015E
Source: Bloomberg, Angel Research

Angel forecast
15.5 16.1

Bloomberg consensus 15.3 16

Variation (%)
1.2 (0.6)

Exhibit 13: EV/EBITDA band

250,000 200,000 150,000 100,000 50,000 0 Apr-10

(` cr)

Dec-10 5x

Aug-11 8x

Apr-12 11x

Dec-12 17x

Aug-13 14x

Source: Bloomberg, Angel Research

August 8, 2013

NMDC | 1QFY2014 Result Update

Exhibit 14: P/E band

600 500 400

(`)

300 200 100 0 Apr-10

Dec-10 9x

Aug-11 14x

Apr-12 19x

Dec-12 24x

Aug-13

Source: Bloomberg, Angel Research

Exhibit 15: P/BV band

700 600 500

(`)

400 300 200 100 0 Apr-10 Dec-10 2.0x Aug-11 4.0x Apr-12 6.0x Dec-12 8.0x Aug-13

Source: Bloomberg, Angel Research

Exhibit 18: Recommendation summary

Companies CMP Sesa Goa NMDC Coal India MOIL Target Reco. Buy Mcap Upside (` cr) (%) P/E (x) FY14E FY15E P/BV (x) FY14E FY15E EV/EBITDA (x) FY14E 31.8 FY15E 14.3 RoE (%) FY14E 12.9 FY15E 12.5 RoCE (%) FY14E 1.8 FY15E 3.6 (`) price (`)

130 100 263 186

162 123 248

11,315 39,627 3,117

25 23 33

4.8 6.5 10.4 8.1

4.4 6.2 9.7 8.0

0.6 1.3 2.5 1.0

0.5 1.2 2.2 0.9

Buy Buy

2.4 4.3 1.7

2.3 3.6 1.3

21.2 33.3 13.4

20.0 33.1 12.4

24.1 19.7 10.6

22.7 19.7 9.9

- Neutral 165,962

Source: Company, Angel Research

Company background
Incorporated in November 1958, government-owned NMDC is Indias largest iron ore producer with a capacity of 32mn tonne. The company operates high-grade iron ore mines at Kirandul and Bacheli in Chhattisgarh and Donimalai in Karnataka. The average mine life of NMDC is 38 years currently.

August 8, 2013

NMDC | 1QFY2014 Result Update

Profit & loss statement (Standalone)

Y/E March (` cr) Net Sales Other operating income Total operating income % chg Total Expenditure Net Raw Materials Personnel Other EBITDA % chg (% of Net Sales) Depreciation & Amort. EBIT % chg (% of Net Sales) Interest & other Charges Other Income Recurring PBT % chg Extraordinary Inc/(Exp.) PBT (reported) Tax (% of PBT) PAT (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg FY2010 6,239 6,239 (17.5) 1,817 211 420 1,186 4,422 (24.2) 70.9 73 4,349 (24.6) 69.7 862 5,211 (21.6) 5,211 1,760 33.8 3,451 3,451 (21.1) 55.3 8.7 8.7 (21.1) FY2011 11,369 11,369 82.2 2,722 123 492 2,107 8,646 95.5 76.1 125 8,521 95.9 75.0 1,206 9,727 86.7 9,727 3,228 33.2 6,499 6,499 88.3 57.2 16.4 16.4 88.3 FY2012 11,261 11,261 (1.0) 2,336 234 529 1,573 8,925 3.2 79.3 130 8,794 3.2 78.1 2,016 10,811 11.1 (513.0) 10,760 3,494 32.5 7,266 7,266 11.8 64.5 18.3 18.3 11.8 FY2013 10,704 10,704 (4.9) 3,326 105 580 2,642 7,378 (17.3) 68.9 139 7,239 (17.7) 67.6 2,226 9,465 (12.4) 9,465 3,123 33.0 6,342 6,342 (12.7) 59.2 16.0 16.0 (12.7) FY2014E 10,718 10,718 0.1 3,577 224 621 2,733 7,141 (3.2) 66.6 145 6,996 (3.4) 65.3 2,163 9,159 (3.2) 9,159 3,022 33.0 6,136 6,136 (3.2) 57.3 15.5 15.5 (3.2) FY2015E 11,514 11,514 7.4 4,084 264 652 3,168 7,430 4.0 64.5 153 7,277 4.0 63.2 2,250 9,527 4.0 9,527 3,144 33.0 6,383 6,383 4.0 55.4 16.1 16.1 4.0

August 8, 2013

NMDC | 1QFY2014 Result Update

Balance sheet (Standalone)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Reserves& Surplus Shareholders Funds Total Loans Deferred Tax Liability Other Long term Liabilties Long Term Provisions Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Long Term Loans and Adv. Other non- current assets Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 1,771 984 787 561 76 14,264 12,855 683 726 1,348 12,916 17 14,357 2,273 (1,174) 1,099 568 136 199 11 19,086 17,228 557 1,300 1,744 17,342 19,354 2,388 (1,199) 1,189 1,494 248 512 7 23,199 20,265 1,048 1,886 2,105 21,094 24,543 3,388 (1,338) 2,050 2,164 248 512 7 24,804 21,892 1,048 1,864 2,147 22,657 27,638 3,888 (1,483) 2,405 4,364 248 512 7 25,185 22,277 1,048 1,860 2,194 22,992 30,528 4,388 (1,636) 2,752 7,064 248 512 7 25,368 22,446 1,048 1,875 2,288 23,080 33,664 14,357 396 13,876 14,272 85 396 18,818 19,215 103 22 15 19,354 396 24,010 24,406 100 23 13 24,543 396 27,105 27,501 100 23 13 27,638 396 29,994 30,391 100 23 13 30,528 396 33,130 33,527 100 23 13 33,664 FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E

August 8, 2013

NMDC | 1QFY2014 Result Update

Cash flow statement (Standalone)

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Others Direct taxes paid Cash Flow from Operations Inc./ (Dec.) in Fixed Assets Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E 5,207 73 926 (832) (1,770) 3,604 (422) 828 407 (895) (895) 3,115 9,740 12,855 9,726 122 (525) (1,144) (3,318) 4,862 (456) (3,961) (4,417) (994) (0) (994) (550) 1,648 1,153 10,760 184 (889) (1,962) (3,502) 4,595 (1,211) 472 (739) (1,911) (0.1) (1,911) 1,945 1,153 3,098 9,465 139 64 (3,123) 6,545 (1,670) (1,670) (3,247) (3,247) 1,628 3,098 21,892 9,159 145 50 (3,022) 6,332 (2,700) (2,700) (3,247) (3,247) 385 21,892 22,277 9,527 153 80 (3,144) 6,616 (3,200) (3,200) (3,247) (3,247) 169 22,277 22,446

August 8, 2013

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NMDC | 1QFY2014 Result Update

Key ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio (%) Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (EBIT / Int.) (0.9) (2.9) (0.9) (2.0) (0.8) (2.3) (0.8) (3.0) (0.7) (3.2) (0.7) (3.1) 3.6 60 43 91 27 5.6 48 15 62 3 4.8 68 20 68 15 3.7 65 20 68 27 2.9 60 20 68 25 2.8 50 20 68 21 33.4 347.9 26.6 50.6 744.9 38.8 40.1 444.2 33.3 27.7 246.6 24.4 24.1 200.7 21.2 22.7 192.9 20.0 69.7 66.2 3.8 174.0 75.0 66.8 6.7 333.3 78.1 67.7 3.7 197.7 67.6 67.0 2.2 101.8 65.3 67.0 1.6 69.4 63.2 67.0 1.2 51.4 8.7 8.7 8.9 1.8 36.0 16.4 16.4 16.7 3.3 48.5 18.3 18.3 18.7 4.5 61.6 16.0 16.0 16.3 7.0 69.4 15.5 15.5 15.8 7.0 76.7 16.1 16.1 16.5 7.0 84.6 11.5 11.2 2.8 1.8 4.3 6.0 1.9 6.1 6.0 2.1 3.3 2.0 2.6 1.2 5.5 5.4 1.6 4.5 1.7 2.1 0.8 6.2 6.1 1.4 7.0 1.6 2.4 0.6 6.5 6.3 1.3 7.0 1.6 2.4 0.6 6.2 6.1 1.2 7.0 1.5 2.3 0.5 FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E

August 8, 2013

11

NMDC | 1QFY2014 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

NMDC No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

August 8, 2013

12