mrf 2q sy 2013

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Please refer to important disclosures at the end of this report 1

Y/E Sept. (` cr) 2QSY2013 2QSY2012 % chg (yoy) 1QSY2013 % chg (qoq)Net sales 2,906 2,993 (2.9) 3,026 (3.9)EBITDA 444 326 36.3 403 10.2

EBITDA margin (%) 15.3 10.9 440bp 13.3 196bp

Reported PAT 211 150 40.3 180 16.9Source: Company, Angel Research

For 2QSY2013, MRF reported a 2.9% yoy decline in revenue to `2,906cr (`2,993cr in

2QSY2012), on account of slowdown in auto industry. Declining rubber prices led to

a 440bp yoy expansion in the EBITDA margin to 15.3% from 10.9% in the same

quarter last year. Consequently, the net profit for the quarter surged by 40.3% yoy to`211cr, from `150cr in 2QSY2012.

Low rubber prices benefits margin in spite of low demand: Volatility in rubber(a major raw material for MRF) prices since the last two years has favorably impacted

the companys financials. Rubber prices have declined to an average of `160/kg in

2QSY2013 as compared to an average of `173/kg in 1QSY2013 and `191/kg in

2QSY2012. This led to an expansion in the EBITDA margin by 196bp qoq and

440bp yoy to 15.3% for the quarter. Going forward, since the company has taken

price cuts in its products during 2QSY2013 and demand for its tyres is low due to a

slowdown in the auto industry, we expect the EBITDA margin for 2HSY2013 to be

lower compared to the current quarter, thus resulting in an overall margin of 14.1%for SY2013. We expect the EBITDA margin to contract by 65bp yoy in SY2014 due to

price cuts, which could further escalate if the demand does not pick up.

Outlook and valuation: We expect MRF to post a 3.0% revenue CAGR overSY2012-14 to `12,587cr, while EBITDA margin is expected to expand by 348bp

to 14.1% in SY2013, due to decline in rubber prices. However, we expect margin

to contract in SY2014 to 13.5% on account of reduction in tyre prices.

Consequently, the net profit is expected to post a 18.7% CAGR over SY2012-14

to `807cr. At the current market price, MRF is trading at a PE of 7.3x its SY2014E

earnings and at a P/BV of 1.3x for SY2014E. We upgrade the stock to Buy ratingon the stock with a revised target price of `15,225, based on a target P/E of 8.0xfor SY2014E earnings.Key financialsY/E Sept. (` cr) SY2011 SY2012 SY2013E SY2014ENet Sales 9,743 11,870 11,799 12,587% chg 30.7 21.8 (0.6) 6.7

Adj. Net Profit 343 572 757 807% chg 0.9 67.0 32.2 6.6

EBITDA (%) 8.3 10.6 14.1 13.5

EPS (`) 808 1,350 1,785 1,903P/E (x) 16.4 9.8 7.4 6.9

P/BV (x) 2.4 2.0 1.6 1.3

RoE (%) 17.2 22.2 23.4 20.2

RoIC (%) 18.9 23.3 26.0 24.2

EV/Sales (x) 0.7 0.6 0.5 0.5

EV/EBITDA (x) 8.5 5.4 3.8 3.5

Source: Company, Angel Research

BUYCMP `13,225

Target Price `15,225

Investment Period 12 Months

Stock Info

Sector

Net Debt (` cr)

Bloomberg Code

Shareholding Pattern (%)

Promoters 27.2

MF / Banks / Indian Fls 10.7

FII / NRIs / OCBs 30.3

Indian Public / Others 32.3

Abs. (%) 3m 1yr 3yr

Sensex (4.6) 10.3 9.1

MRF (1.5) 16.2 87.9

19,170

Tyres

Market Cap (` cr) 5,609

699

Beta 1.0

13,850/9,556

Avg. Daily Volume 3,417

Face Value (Rs) 10

52 Week High / Low

BSE Sensex

Nifty 5,834

Reuters Code MRF.BO

MRF IN

Shareen Batatawala+91- 22- 3935 7800 Ext: 6849

[email protected]

MRFPerformance Highlights

2QSY2013 Result Update | Tyre

April 22, 2013

7/30/2019 MRF 2Q SY 2013

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MRF| 2QSY2013 Result Update

April 22, 2013 2

Exhibit 1:2QSY2013 performanceY/E Sept. (` cr) 2QSY13 2QSY12 yoy chg (%) 1QSY12 qoq chg (%) 1HSY13 1HSY12 % chgNet Sales 2,906 2,993 (2.9) 3,026 (3.9) 5,932 5,868 1.1Net raw material 1,881 2,109 (10.8) 2,024 (7.0) 3,905 4,219 (7.4)(% of Sales) 64.7 70.5 66.9 65.8 71.9

Staff Costs 136 126 7.6 134 1.1 270 244 10.7

(% of Sales) 4.7 4.2 4.4 4.6 4.2

Other Expenses 445 432 3.1 465 (4.2) 910 822 10.7

(% of Sales) 15.3 14.4 15.4 15.3 14.0

Total Expenditure 2,462 2,667 (7.7) 2,623 (6.1) 5,085 5,285 (3.8)EBITDA 444 326 36.3 403 10.2 847 583 45.3EBITDA margin (%) 15.3 10.9 440bp 13.3 196bp 14.3 9.9 434bp

Interest 50 39 50 99 70

Depreciation 94 72 89 183 137Other Income 5 5 3 8 9

PBT 306 221 38.9 267 14.7 573 385 48.8(% of Sales) 10.5 7.4 8.8 9.7 6.6

Tax 96 70 36.0 87 10.3 183 122 49.1

(% of PBT) 31.3 31.9 32.5 31.8 31.8

Extraordinary income - - - -

Reported PAT 211 150 40.3 180 16.9 391 263 48.6PATM 7.2 5.0 6.0 6.6 4.5

Adjusted PAT 211 150 40.3 180 16.9 391 263 48.6Equity capital (cr) 4 4 4 4 4EPS (`) 497 354 40.3 425 16.9 922 620 48.6


Exhibit 2:Actual vs Angel Estimate (2QSY2013)(` cr) Actual Estimate Variation (%)Total Income 2,906 3,116 (6.7)

EBIDTA 444 407 9.2

EBIDTA margin (%) 15.3 13.0 223bp

Adjusted PAT 211 178 18.1


Revenue below expectation, EBITDA margin surprises positively

For 2QSY2013, MRF reported a lower-than-expected top-line of `2,906cr on

account of slowdown in the auto industry. A decline in rubber prices led to a

440bp yoy expansion in EBITDA margin to 15.3%, which is above our estimate of

13.0%. This increase was slightly offset by higher depreciation and interest cost.

Depreciation for the quarter remained elevated, at `94cr, due to commencement

of a new plant in Tamil Nadu in the sequential previous quarter, while interest cost

increased to `50cr during the quarter as compared to `39cr in 2QSY2012, on

account of an increase in debt level. However, the tax rate was lower at 31.3% as

compared to our estimate of 33.0%, which led the net profit to be higher at `211cras compared to our estimate of `178cr.

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April 22, 2013 3

Investment rationale

Declining rubber prices to drive short term profits

Rubber prices have been volatile in the last two years. Since rubber constitutes amajor proportion of the raw material cost for tyre companies, volatility in its price

has impacted the profitability of these companies. Rubber prices have currently

declined due to a number of reasons. A slowdown in production in the automobile

segment has been one of the major reasons for the fall in demand of rubber.

Moreover, due to favorable international prices, import of natural rubber through

duty free channels accounted for 46% of the total rubber supply in the domestic

market during the Apr- Dec 2012 period. This led to piling up of inventory at

projected levels of 2,90,000 tonne, thus resulting in a decline in domestic rubber

prices.

According to an International Rubber Study Group (IRSG) report, global productionin the April-December 2012 period rose 3.2%, while consumption fell by 1.1%.

IRSG estimates 2012 global production and consumption of natural rubber at

11.41 and 10.95 million tonne, respectively, with a surplus of 4,60,000 tonne.

While in 2013, production and consumption are expected to be at 11.77 and

11.59 million tonne, respectively, with a surplus of 1,79,000 tonne. The onset of

dry season in Thailand (world's biggest rubber producer), when rubber supply

reduces by 50%, is expected to result in increase in price. However, this rise would

be offset by the Thai governments decision to discontinue its rubber buying

scheme; thus leading to relatively stable international rubber prices. However,

Thailands decision to join key exporters- Indonesia and Malaysia, to restrict

shipments, has led to an increase in international rubber prices in the past threemonths. This would consequently result in lower rubber imports by India. But

considering the overall bearish trend in the global market, prices are expected to

remain relatively low over the next one to two quarters.

Exhibit 3:Rubber price trend

Source: Rubber Board, Angel Research

Tyre companies have taken price cuts during 2QSY2013. The price cuts have

however been offset by a decline in rubber prices. Lower rubber prices have been

and are expected to be beneficial for MRF and other tyre companies. But this

would only be in the short term as in the long term the EBITDA margins will

contract slightly owing to the price cuts that have been taken.

140

150

160

170

180

190

200

210

220

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

(`/kg

)

International Price Domes tic Price

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April 22, 2013 4

Radialization to drive profitability in the long term

Radialization in the commercial tyre segment is 1518%, which is much lower as

compared to 98% in the passenger vehicle tyre segment. Moreover, radial tyres

are priced 20-25% higher than cross-ply tyres. Most tyre companies have

completed expansion of their new radial tyre capacities. The expansion towards

radialization has been more capital intensive (3.2x) than for cross-ply tyres. Hence,

in order to maintain a similar return on capital employed (RoCE) as that for cross-

ply tyres, tyre companies will have to earn a higher EBITDA margin on radial tyres.

Financials

Exhibit 4:Key assumptionsSY2013E SY2014E

Change in tyre realization (%) (4.0) 1.0

Change in tyre volume sales (%) - 5.0

Change in rubber price (%) (16.0) 1.0

Source: Angel Research

Exhibit 5:Change in estimatesY/E Sept (` cr) Earlier estimates Revised estimates % chg

SY2013E SY2014E SY2013E SY2014E SY2013E SY2014ENet sales (` cr) 12,422 13,767 11,799 12,587 (5.0) (8.6)OPM (%) 12.9 12.8 14.1 13.5 119bp 69bp

EPS (`) 1,661 1,791 1,785 1,903 7.5 6.2Source: Angel Research

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April 22, 2013 5

Weakness in auto industry to impact revenue growth

MRF is expected to post a 3.0% CAGR in revenue over SY2012-14, ie from

`11,870cr in SY2012 to `12,587cr in SY2014. The revenue growth estimate is

relatively muted owing to current weakness in the auto industry, which in turn will

likely impact the tyre industry. Moreover, with a decline in rubber prices and a

weak demand scenario, tyre manufacturers have resorted to price cuts in

2QSY2013, the impact of which will be seen in 2HSY2013, and the same is

expected to result in a subdued revenue growth going forward.

Exhibit 6:Subdued revenue growth


EBITDA margin to decline slightly in SY2014, PAT to remainstable

We expect MRFs EBITDA margin to expand by 348bp in SY2013 to 14.1% on the

back of fall in rubber prices, which constitute a major chunk of the raw material

cost for the company. However, low demand has led tyre companies to cut prices,

which is expected to result in a slight contraction in EBITDA margins over

2HSY2013 and SY2014. The better than expected EBITDA margins in 1HSY2013

will keep the overall SY2013 margin higher. However, we expect the margin to

contract slightly in SY2014. Consequently, we expect a 18.7% CAGR in net profit

over SY2012-14 to `807cr in SY2014.

Exhibit 7:EBITDA margins to correct slightly in SY2014


Exhibit 8:Net profit on an uptrend


5,6

64

7,4

53

9,7

43

11

,870

11

,799

12

,587

12.3

31.630.7

21.8

(0.6)

6.7

(5)

0

5

10

15

20

25

30

35

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

SY2009 SY2010 SY2011 SY2012 SY2013E SY2014E

(%)

(`cr)

Revenue (LHS) Revenue growth (RHS)

682

809

805

1,2

61

1,6

64

1,7

02

12.010.9

8.3

10.6

14.1

13.5

6

7

8

9

10

11

12

13

14

15

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

SY2009 SY2010 SY2011 SY2012 SY2013E SY2014E

(%)

(`cr)

EBITD A (LH S) EBIT DA margin (RHS )

249

340

343

572

757

807

4.4 4.6

3.5

4.8

6.4 6.4

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

0

100

200

300

400

500

600

700

800

900

SY2009 SY2010 SY2011 SY2012 SY2013E SY2014E

(%)

(`cr)

PAT (LHS) PAT margin (RHS)

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April 22, 2013 6

Outlook and valuation

We have revised our revenue estimates marginally downwards considering a

demand slowdown in auto industry, while earnings estimates have been revised

upward due to expansion of EBITDA margin backed by falling rubber prices. At the

current levels, the stock is trading at a PE of 6.9x its SY2014E earnings and at a

P/BV of 1.3x for SY2014E. We upgrade the stock to Buy recommendation with arevised target price of `15,225, based on a target P/E of 8.0x for SY2014E. Exhibit 9:One-year forward P/E band


Exhibit 10:Relative valuationYear end Sales(` cr) OPM(%) PAT(` cr) EPS(`) ROE(%) P/E(x) P/BV(x) EV/EBITDA(x) EV/Sales(x)

Apollo Tyres FY2015E 15,841 11.5 801 15.9 18.2 5.9 1.0 3.8 0.4

MRF SY2014E 12,587 13.5 807 1,903.2 20.2 6.9 1.3 3.5 0.5Source: Company

0

3,000

6,000

9,000

12,000

15,000

18,000

21,000

24,000

Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13

(`)

Price 2x 5x 8x 11x

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April 22, 2013 7

Risks

Volatile rubber prices: Natural rubber is the major raw material used in themanufacture of tyres. Rubber prices were at a high of `243/kg in April 2011;

however, prices have now fallen to a low of `157/kg (in February 2013) and are

currently at `163/kg. Increased volatility in rubber prices would have a direct

impact on the companys EBITDA margin and consequently its profit.

Exhibit 11:Rubber price trend

Source: Rubber Board

Company Background

MRF manufactures rubber products such as tyres, tubes, flaps, tread rubber and

conveyor belts. The company is present across all categories of tyres, with an

installed capacity of 3.2cr tyres. MRF is a market leader in the tyre industry with an

~27% market share currently. The company is also a leader in the passenger car

tyre segment with a 23.9% market share and holds a third position in the MHCV

segment with a 21.4% market share. It also exports tyres to over 65 countries in

America, Europe, Middle East, Japan and the Pacific region.

243

163

150

160

170

180

190200

210

220

230

240

250

Apr-

11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

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April 22, 2013 8

Profit & Loss Statement (Standalone)

Y/E Sept. (` cr) SY2010 SY2011 SY2012 SY2013E SY2014EGross sales 8,080 10,645 13,062 13,009 13,832Less: Excise duty 628 902 1,192 1,210 1,245Net Sales 7,453 9,743 11,870 11,799 12,587

Total operating income 7,453 9,743 11,870 11,799 12,587% chg 31.6 30.7 21.8 (0.6) 6.7

Net Raw Materials 5,023 7 ,107 8,353 7,757 8,393

Personnel 371 447 514 549 566

Other 1,249 1,385 1,743 1,829 1,926

Total Expenditure 6,644 8,938 10,609 10,135 10,885

EBITDA 809 805 1,261 1,664 1,702% chg 18.5 (0.5) 56.7 32.0 2.3

(% of Net Sales) 10.9 8.3 10.6 14.1 13.5

Depreciation 261 248 301 376 414

EBIT 548 557 960 1,288 1,288% chg 26.5 1.7 72.3 34.2 (0.0)

(% of Net Sales) 7.4 5.7 8.1 10.9 10.2

Interest & other charges 63 93 159 198 139

Other Income 42 25 32 24 38

(% of sales) 0.6 0.3 0.3 0.2 0.3

PBT 527 489 833 1,113 1,187% chg 32.2 (7.1) 70.2 33.6 6.6

Tax 181 274 261 356 380

(% of PBT) 34.3 56.0 31.3 32.0 32.0

PAT (reported) 346 619 572 757 807Minority interest - 1 - - -

Extraordinary (Exp)/Inc. 7 (404) - - -

Tax on extraordinary exp 128ADJ. PAT 340 343 572 757 807

% chg 36.5 0.9 67.0 32.2 6.6

(% of Net Sales) 4.6 3.5 4.8 6.4 6.4

Basic EPS (`) 801 808 1,350 1,785 1,903Fully Diluted EPS ( ) 801 808 1,350 1,785 1,903% chg 36.5 0.9 67.0 32.2 6.6

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April 22, 2013 9

Balance Sheet (Standalone)

Y/E Sept. (` cr) SY2010 SY2011 SY2012 SY2013E SY2014ESOURCES OF FUNDSEquity Share Capital 4 4 4 4 4Preference Capital - - - - -

Reserves& Surplus 1,686 2,294 2,854 3,598 4,392

Equity share warrants

Shareholders Funds 1,691 2,298 2,858 3,602 4 ,396Minority Interest - - - - -

Total Loans 1,354 1,372 1,631 1,468 1,028

Deferred Tax Liability (15) 142 187 187 187

Other Long Term Liabilities - 776 908 903 963

Long Term Provisions - 50 87 87 93

Total Liabilities 3,030 4,637 5,671 6,246 6,666APPLICATION OF FUNDSGross Block 3,368 3,832 5,063 5,619 6,181

Less: Acc. Depreciation 2,039 1,860 2,149 2,525 2,939

Net Block 1,329 1,971 2,914 3,094 3,242Capital Work-in-Progress 498 1,042 415 373 373

Investments 73 73 425 654 654

Long Term Loans and adv. - 146 57 66 66

Other non-current assets - 24 30 33 33

Current Assets 2,095 3,079 3,371 3,556 3,880Cash 45 56 61 99 99

Loans & Advances 127 182 203 212 239

Inventory 1,111 1,526 1,646 1,690 1,847

Debtors 811 1,309 1,454 1,487 1,621

Other current assets - 7 7 68 73

Current liabilities 964 1,699 1,541 1,529 1,581

Net Current Assets 1,131 1,380 1,830 2,027 2,299Mis. Exp. not written off - - - - -

Total Assets 3,030 4,637 5,671 6,246 6,666

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April 22, 2013 10

Cash Flow Statement (Standalone)

Y/E Sept. (` cr) SY2010 SY2011 SY2012 SY2013E SY2014EProfit before tax 527 489 833 1,113 1,187

Depreciation 261 248 301 376 414Change in Working Capital (492) (238) (445) (159) (271)

Other income 42 409 595 (24) (38)

Direct taxes paid (181) (274) (261) (356) (380)

Cash Flow from Operations 157 634 1,023 951 912(Inc.)/Dec. in Fixed Assets (846) (1,008) (603) (515) (562)

(Decr)/Incr in Long term provisions 76 (0) (352) (229) -

(Inc.)/Dec. in Investments - 50 38 (1) 6

(Incr)/Decr In L.T loans and adv - (170) 82 (11) -

Other income 42 25 32 24 38

Others (58) 43 (126) - -

Cash Flow from Investing (786) (1,061) (929) (732) (518)Issue of Equity - - - - -

Inc./(Dec.) in loans 682 793 392 (169) (380)

Dividend Paid (Incl. Tax) (25) (12) (12) (13) (13)

Others (43) (342) (469) - -

Cash Flow from Financing 614 438 (89) (181) (393)Inc./(Dec.) in Cash (15) 11 5 37 1

Opening Cash balances 60 4 5 56 61 99Closing Cash balances 45 56 61 99 99

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April 22, 2013 11

Key RatiosY/E Sept. SY2010 SY2011 SY2012 SY2013E SY2014EValuation Ratio (x)P/E (on FDEPS) 16.5 16.4 9.8 7.4 6.9P/CEPS 9.3 9.5 6.4 4.9 4.6

P/BV 3.3 2.4 2.0 1.6 1.3

Dividend yield (%) 0.4 0.2 0.2 0.2 0.2

EV/Sales 0.9 0.7 0.6 0.5 0.5

EV/EBITDA 8.5 8.5 5.4 3.8 3.5

EV / Total Assets 2.3 1.5 1.2 1.0 0.9

Per Share Data (`)EPS (Basic) 801.2 808.4 1,349.9 1,785.2 1,903.2

EPS (fully diluted) 801.2 808.4 1,349.9 1,785.2 1,903.2

Cash EPS 1,416.1 1,392.4 2,060.1 2,673.2 2,879.9

DPS 58.3 29.1 25.0 30.0 30.0

Book Value 3,987 5,419 6,740 8,495 10,368

Dupont AnalysisEBIT margin 7.4 5.7 8.1 10.9 10.2

Tax retention ratio 0.7 0.7 0.7 0.7 0.7

Asset turnover (x) 3.1 2.8 2.5 2.3 2.3

ROIC (Post-tax) 14.8 11.0 13.8 17.1 15.8

Cost of Debt (Post Tax) 4.1 4.7 7.3 8.7 7.6

Leverage (x) 0.7 0.5 0.4 0.2 0.1

Operating ROE 22.6 14.4 16.5 18.8 16.3

Returns (%)ROCE (Pre-tax) 21.7 14.5 18.6 21.6 19.9

Angel ROIC (Pre-tax) 27.8 18.9 23.3 26.0 24.2

ROE 22.3 17.2 22.2 23.4 20.2

Turnover ratios (x)Asset Turnover 2.4 2.7 2.7 2.2 2.1

Inventory / Sales (days) 43 49 49 52 51

Receivables (days) 34 40 42 46 47

Payables (days) 47 54 56 55 53

WC (ex-cash) (days) 41 45 48 57 60

Solvency ratios (x)Net debt to equity 0.7 0.5 0.4 0.2 0.1

Net debt to EBITDA 1.5 1.5 0.9 0.4 0.2

Interest Coverage 8.7 6.0 6.0 6.5 9.3

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April 22 2013 12

Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

DISCLAIMERThis document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investmentdecision. 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 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 reliablesources 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 thisdocument is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .Angel Broking 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. WhileAngel Broking 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.

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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

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Neither Angel Broking 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 thelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may haveinvestment positions in the stocks recommended in this report.

Disclosure of Interest Statement MRF

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)

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

mrf 2q sy 2013

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