NiveshDaily. From Research Desk. Result Preview. Result Update. Alembic Pharmaceuticals Ltd Idea Cellular Ltd. Exide Industries Ltd.

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1 NiveshDaily January 22, 2016 Daljeet S. Kohli Head of Research Tel: From Research Desk Result Preview Lumax Auto technologies Ltd. Rating: BUY Target: Rs. 448/ Force Motors Ltd. Rating: BUY Target: Rs. 3780/ (Results on 23 Jan 2016) Coromandel International Ltd (COIL) Rating: BUY Target: 304/ L&T Finance Holding (LTFH) Rating: BUY Target: 79/ Lakshmi Vilas Bank Rating: BUY Target: Rs 113/ Result Update Alembic Pharmaceuticals Ltd Idea Cellular Ltd. Exide Industries Ltd. Global Markets Outlook IndiaNivesh Research IndiaNivesh Securities Limited Research Analyst SEBI Registration No. INH & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai Tel: (022) IndiaNivesh Research is also available on Bloomberg INNS, Thomson First Call, Reuters and Factiva INDNIV.

2 Daljeet S. Kohli Head of Research Tel: Abhishek Jain Research Analyst Tel: Aman Vij Research Analyst Tel: Result Preview Lumax Auto technologies Ltd. Rating: BUY Target: Rs. 448 Quick Fundamentals (Rs. Mn) Q3FY16e Q2FY16 Q3FY15 QoQ % YoY % Revenue 2,303 2,264 2, EBIDTA (3) 15 Adj PAT (7) 27 EPS (RS.) (7) 27 Margin % Margin % Margin % Basis Points(BPS) EBITDA (41) 41 PAT (43) 62 Revenue is expected to increase by 10% YoY due to higher revenue from gear shifter, plastic moulded part, air intake system and sheet metal business. EBITDA margin expected to go up by 41 bps YoY due to higher operating leverage and cost control measures. Valuation We expect company to witness strong volume growth coupled with margin expansion in the next couple of years on the back of revival in automotive demand and value added products. With comfortable debt to equity of just 0.2x & strong ROE of ~22% we believe the company has potential to yield very high returns in next 2 3 years. The company has a consistent dividend track record with dividend payout of above 25%. At CMP of Rs 320, LATL is trading at 9.8x FY16e and 7.1x FY17e EPS. We believe current valuation is attractive and maintain BUY rating on LATL with target price of Rs. 448 (10x FY17E EPS). Force Motors Ltd. Rating: BUY Target: Rs (Results on 23 Jan 2016) Quick Fundamentals (Rs. Mn) Q3FY16e Q2FY16 Q3FY15 QoQ % YoY % Volume(Unit) Revenue From Auto segment From Auto Component segment Average realization EBIDTA PAT EPS (RS.) Margin % Margin % Margin % Basis Points (BPS) EBITDA (94) 470 PAT (89) 278 Force Motor s revenue is likely to increase by 38% YoY to Rs 7.04bn led by strong growth in both segments. The average blended realization is expected to increase by 7% because of higher LCV sales and higher Auto component sales. EBITDA margin is likely to expand by 470 bps YoY due to higher LCV and UV Sales and Higher proportion of revenues coming from Auto Component business. Revenue from auto component segment would have been even higher if not for Chennai floods which led to closing of BMW plant for almost 1 month and Supreme Court order to ban sales of diesel cars over 2000cc engine capacity in NCR region during the second half of December Valuation Considering the growth in Luxury car segment, we see strong revenue growth from Auto component business that will help in overall margin expansion. Strong demand for Force Traveller from multiple industries will ensure strong growth of The Automobile segment. The company is net debt free company, sitting on cash and cash equivalents of around Rs. 4 bn

3 (Rs. 305/share) as on 31st September The company s net sale is expected to grow at CAGR 21% while the company s profit is expected to grow at CAGR of 43% for FY15 FY17E. Due to the above reasons, we value the stock at 24X FY17E earnings. At CMP of Rs. 2533, Force Motors is trading at 16.1x FY17e earnings; we recommend BUY with target price of Rs (based on 24x FY17e earnings) Daljeet S. Kohli Head of Research Tel: daljeet.kohli@indianivesh.in Amar Mourya Research Analyst Tel: amar.mourya@indianivesh.in Coromandel International Ltd (COIL) Rating: BUY Target: 304/ Rs.mn Q3FY16E Q2FY16 Q3FY15 Q o Q % Y o Y % Revenue 31,990 35,644 29, % 8.0% EBIDTA 2,545 3,137 2, % 13.0% PAT 1,323 1,735 1, % 7.1% EBITDA % 8.0% 8.8% 7.6% PAT % 4.1% 4.9% 4.2% 73 3 Source: Company Filing; IndiaNivesh Research Result Preview We expect revenue growth of 8.0% Y/Y (down 10.3% Q/Q) to Rs.31.9 bn. EBITDA margin is likely to expand 35 bps Y/Y to 8.0% with EBITDA growth of 13.0% Y/Y to Rs.2,545 mn. We forecast 7.1% Y/Y increase in PAT to Rs.1,323 mn on back higher EBITDA base. Key points to watch Industry wide inventory position and fertilizer demand scenario. Working capital cycle, status on government subsidy disbursement and performance of export in non subsidy business. Valuation At CMP of Rs.165/share the stock is trading at EV/EBITDA multiple of 6.4x FY16E and 5.3x FY17E estimates. We have a BUY with the target price of Rs.304/share on stock.

4 Daljeet S. Kohli Head of Research Tel: Yogesh Hotwani Research Analyst Tel: L&T Finance Holding (LTFH) Rating: BUY Target: 79/ (Rs mn) Q3FY16E Q2FY16 Q3FY15A % QoQ % YoY Net Interest Income 7,854 7,957 6,770 (1) 16 Pre Provisioning Profit 5,379 5,007 4, Net Profit 2,407 2,144 1, EPS (Rs) Source: Company Filings, IndiaNivesh Research We expect LTFH s consolidated loan growth of 19% yoy led by 21% yoy growth in L&T Infra and Housing business growth of 79% yoy offset by muted 4% yoy growth in L&T Finance. Consolidated Net Interest Income growth to remain strong at 16% yoy with Consolidated NIMs (Calc) of 6%. Further we expect Operating profit growth of 21% yoy to Rs 5.4 bn. Consolidated Net profit growth to remain slightly better than operating profit growth at 33% yoy mainly due to high base of provisioning expense in Q3FY15. Valuation At CMP of Rs 56, L&TFH is trading at consolidated P/ABV of 1.6x and 1.4x for FY16E and FY17E respectively. We have buy rating on stock with target price of Rs 79. Key things to watch out for Loan growth in L&T Infra, L&T Finance and Housing Finance business Asset quality in both the financing subsidiaries Any asset sale to ARC and restructuring of assets in L&T Infra Daljeet S. Kohli Head of Research Tel: daljeet.kohli@indianivesh.in Kaushal Patel Research Associate Tel: kaushal.patel@indianivesh.in Lakshmi Vilas Bank Rating: BUY Target: Rs 113/ (Rs mn) Q3FY16E Q2FY16A Q3FY15A % QoQ % YoY Net Interest Income 1,700 1,603 1, Pre Provisioning Profit 1, , Net Profit (5) 31 EPS (Rs) (5) 31 Source: Company Filings, IndiaNivesh Research; Standalone We expect loan and deposit growth to remain above industry average at 28% y o y and 24% y o y, respectively. NII is expected to grow by 24% y o y to Rs 1.7 bn. Pre provisioning profit is expected to increase 6% y o y to Rs 1.1 bn mainly due to higher operating expenses. The bank opened 23 new branches in Q3FY16 as compared to 9 new branches in H1FY16. However, net profit of the bank to increase 31% y o y to Rs 427 mn mainly due to lower provisioning expenses. We expect provisioning expenses to decline ~20% y o y in Q3FY16E. We don t see any negative surprise on asset quality side (Gross NPA at 1.9% and Net NPA at 1.0%). Valuation: At CMP of Rs 88/, the stock is trading at P/ABV of 1.0x and 1.0x for FY16E and FY17E respectively. We have a BUY rating on the stock with target price of Rs 113/. Key things to watch out for: Impact of floods in Chennai on growth and asset quality Outlook on corporate loan book and growth in retail segment

5 Alembic Pharmaceuticals Ltd A strong quarter; expect y y growth to peak out over medium term Q3FY16 Result Updates January 22, 2016 Current CMP : Rs.625 Rating : HOLD Target : Rs.671 Previous Rating : BUY Target : Rs.764 STOCK INFO Bse Nse APLLTD Bloomberg ALPM IN Reuters ALEM.BO Sector Pharmaceutical Face Value (Rs) 2 Equity Capital (Rs mn) 377 Mkt Cap (Rs mn) 117,841 52w H(Rs) wLl(Rs) 381 Avg Daily Vol (Bse+Nse) 284,450 SHAREHOLDING PATTERN % (as on Sept. 2015) Promoters 74.1 FIIs 7.7 DIIs 4.9 Public & Others 13.3 Source: BSE STOCK PER. (%) 1m 3m 12m Alembic Pharma Ltd (6.5) (13.0) 32.9 Sensex (6.9) (12.2) (17.1) Source: Capitaline, IndiaNivesh Research Alembic Pharmaceuticals Ltd v/s SENSEX ALEMBIC PHARMACE SENSEX Index Source: Capitaline, IndiaNivesh Research Alembic Pharmaceuticals (ALPM) financial performance of 3QFY16 was betterthan estimates, mainly driven by g Abilify sales in US market and reduced other expenses. We raise FY16E EPS by 7.3% to factor strong 9MFY16 performance. We reduce FY17E EPS by 12.1% to Rs30.5, to factor moderation in momentum of US sales due to high base of FY16E. US business for YTD FY16 has been led primarily by g Abilify. With more companies getting final approval for this product and price erosion would lead to reduction in business for ALPM from this product. Considering this and lower visibility on such potential product in FY17, we have reduced US sales in FY17 compared to that in FY16. Accordingly, we have revised our price target to Rs671 (from Rs764 earlier), based on 22x FY17E earnings. At CMP of Rs. 625, Alembic Pharma trades at 16.7x/20.6x FY16E/17E EPS. We also downgrade to HOLD from BUY due to limited upside from current levels. Rs.mn Q3FY16 Q3FY15 Q2FY16 Y y (%) Q q (%) INSPL Est. Variance (%) Sales 9,210 5,110 10, (9.5) 8, EBIDTA 3,839 1,025 3, (0.3) 2, Adjusted PAT 2, , (6.3) 1, PAT 2, , (6.3) 1, Highest ever y y growth in quarterly adjusted PAT: Sales at Rs9.2bn grew by 80.2% y y for the quarter. The growth was primarily driven by international generics sales, up 277% y y, for the quarter. Healthy growth in domestic formulation sales (up 15% y y) and API sales (up 24% y y) also aided overall y y growth in sales for the quarter. Gross margin increased by 1,175 bps y y to 77.6%, mainly due to ongoing limited competition opportunity in US market. EBITDA margin increased at higher rate of 2,179bps y y, compared to growth in gross margin. This is mainly due to lower y y growth in other expenses compared to that of sales growth. As a result, other expenses were at 15.6% of sales, against 24.5% of sales in Q3FY15. Gross R&D spent for the quarter was Rs740mn and formed 8.1% of net sales. Depreciation increased 81.9% y y to Rs217mn due to commissioning of Sikkim plant. ALPM had capex of Rs2bn in 9MFY16 and maintained its guidance of Rs3 3.5bn for FY16. Daljeet S. Kohli Head of Research Tel: daljeet.kohli@indianivesh.in Tushar Manudhane Research Analyst Tel: tushar.manudhane@indianivesh.in Niche opportunity led sharp y y growth in international generics sales: International generics sales grew sharply by 277% y y to Rs5bn for the quarter. This is mainly due to higher sales of g Abilify for the quarter. As per Bloomberg, there has been loss of market share by ALPM in g Abilify market in past 2 months. However, management guided for regaining of market share in last few weeks. We expect sales and profitability to reduce going forward due to price erosion on the back of increased competition. ALPM has launched 5 products in US market and guided for launching at least 2 products in Q4FY16. ALPM filed 3 ANDAs taking the cumulative ANDA filing to 74. ALPM has 29 ANDAs pending for approval at the end of 3QFY16. ALPM has increased R&D spend for developing formulation for US market, which is mix of complex generic as well as para IV filing. ALPM has also guided for product development in injectable and derma space. This is also indicated in R&D spend, which increased by 115% y y to Rs1.96bn for 9MFY16. IndiaNivesh Research IndiaNivesh Securities Limited Research Analyst SEBI Registration No. INH & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai Tel: (022) IndiaNivesh Research is also available on Bloomberg INNS, Thomson First Call, Reuters and Factiva INDNIV.

6 Q3FY16 Result Update (contd...) Specialty segment drives overall y y growth in domestic formulation (DF) sales for the quarter: The y y growth bounced to 15.3% after having a dip in 2QFY16. DF sales came in at Rs2.9bn for the quarter. Specialty segment now formed 60% of DF for YTD FY16. The y y growth was led by volume growth of 6.8% y y, new product launches (4.2% y y) and pricing growth in existing products of 3.8% y y. Therapeutic category wise, cardiology, anti diabetic, gynecology led overall y y growth in DF. We expect ALPM to maintain momentum of betterthan industry growth in DF segment on the back of new product launches and increased traction in existing products. Valuation: We raise FY16E EPS by 7.3% to factor strong 9MFY16 performance. We reduce FY17E EPS by 12.1% to Rs30.5, to factor moderation in momentum of US sales due to high base of FY16E. US business for YTD FY16 has been led primarily by g Abilify. With more companies getting final approval for this product and price erosion would lead to reduction in business for ALPM from this product. Considering this and lower visibility on such potential product in FY17, we have reduced US sales in FY17 compared to that in FY16. Accordingly, we have revised our price target to Rs671 (from Rs764 earlier), based on 22x FY17E earnings. At CMP of Rs. 625, Alembic Pharma trades at 16.7x/20.6x FY16E/17E EPS. We also downgrade to HOLD from BUY due to limited upside from current levels. Key changes in estimates Rs mn Old estimates New estimates Change (%) FY16E FY17E FY16E FY17E FY16E FY17E Sales 34,415 38,699 35,056 34, (10.8) EBITDA 9,071 9,045 9,807 8, (9.9) PAT 6,581 6,542 7,065 5, (12.1) EPS (Rs) (12.1) PT (Rs) Quarterly results summary Rs mn Q3FY16 Q3FY15 Y o Y (%) Q2FY16 Q o Q (%) 9MFY16 9MFY15 Y o Y (%) Net Sales 9,210 5, ,177 (9.5) 25,211 15, Total Income 9,210 5, ,177 (9.5) 25,220 15, Consumption of raw material 2,060 1, ,263 (9.0) 6,455 5, Empoyee Cost 1, ,196 (2.2) 3,244 2, R&D Expenses (10.1) 1, Other Expenditure 1,440 1, ,088 (31.0) 4,852 3, Total Expenditure 5,371 4, ,327 (15.1) 16,512 12, EBITDA 3,839 1, ,851 (0.3) 8,708 3, Depreciation & Ammortization EBIT 3, ,718 (2.6) 8,230 2, Interest (24.4) Other Income , , Pre tax Profit 3, ,711 (1.7) 8,242 2, Tax , Net Profit (adj) 2, ,878 (6.3) 6,270 2, Net Profit reported 2, ,878 (6.3) 6,270 2, EPS (Rs) (6.3) O/ Shares Key ratios Q3FY16 Q3FY15bps (y o y) Q2FY16bps (q o q) 9MFY16 9MFY15bps (y o y) Gross Margins , (13) EBITDA margin , ,487 Net Margin , ,118 Material cost/ Net sales (1,170) (924) Employee Cost/ Net sales (277) (204) R& D Expenses / Net sales (5) Other Expenditure/ Net sales (885) 20.5 (488) (540) Tax Rate Alembic Pharma (contd...) January 22,

7 Q3FY16 Result Update (contd...) Sales composition Q3FY16 Q3FY15 Y o Y (%) Q2FY16 Q o Q (%) 9MFY16 9MFY15 Y o Y (%) Formulation 8,294 4, ,805 (5.8) 21,773 12, Domestic 3,083 2, ,097 (0.4) 9,093 8, India Branded 2,883 2, , ,356 7, India Generics (39.6) 251 (20.1) (18.6) Exports 5,211 1, ,708 (8.7) 12,680 4, International Branded (30.1) International Generics 5,030 1, ,592 (10.1) 12,299 3, API 1, ,372 (26.2) 3,552 2, Total 9,306 5, ,177 (8.6) 25,386 15, US sales run rate increased sharply on quarterly basis International generics sales (US $mn) Y y growth (%) (3.1) QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY DF sales resume healthy y y growth DF (Rs bn) Y y growth (%) QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY Anti diabetic leads the y y therapeutic growth rate in DF segment Y y growth (%) (1.0) Anti Diabetic Gynecology Cough & Cold Nephrology/Urology Total Orthopedics AI GI Opthalmology Alembic Pharma (contd...) January 22,

8 Q3FY16 Result Update (contd...) EBITDA margin grew at higher rate than gross margin due to lower other expenses EBITDA margin (%) Gross margin (%) QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3Q FY DF sales composition (Therapeutic category wise) Nephrology/Ur ology, 2 Opthalmology, 2 Dermatology, 1 Orthopedics, 4 Anti Diabetic, 6 GI, 15 Gynecology, 12 Cardiovasculars, 15 Cough & Cold, 15 Alembic Pharma (contd...) January 22,

9 Q3FY16 Result Update (contd...) Financial Statements: Income statement Y E March (Rs m) FY13 FY14 FY15 FY16E FY17E Net sales 15,173 18,607 20,527 35,056 34,533 Growth % 3.8% 22.6% 10.3% 70.8% 1.5% Expenditure Raw Material 6,807 7,134 7,145 11,393 12,432 Employee cost 1,938 2,470 3,068 4,316 4,366 Other expenses 3,939 5,452 6,288 9,625 9,687 EBITDA 2,520 3,577 4,060 9,807 8,147 Growth % 14.3% 42.0% 13.5% 141.5% 16.9% EBITDA Margin % 16.6% 19.2% 19.8% 28.0% 23.6% Deprecaition EBIT 2,170 3,172 3,616 9,117 7,388 EBIT Margin % 14.3% 17.0% 17.6% 26.0% 21.4% Other Income Interest (12) (24) PBT 2,064 3,106 3,622 9,175 7,468 Tax ,110 1,718 Effective tax rate % 19.9% 24.2% 21.1% 23.0% 23.0% Extraordinary items Less: Minority Interest Adjusted PAT 1,653 2,355 2,829 7,065 5,750 Growth% 27.0% 42.5% 20.1% 149.7% 18.6% PAT margin % 10.9% 12.7% 13.8% 20.2% 16.7% Reported PAT 1,653 2,355 2,827 7,065 5,750 Growth% 27.0% 42.5% 20.0% 149.9% 18.6% Cash Flow Y E March (Rs m) FY13 FY14 FY15 FY16E FY17E PBT 2,064 3,106 3,591 9,175 7,468 Depreciation Interest (12) (24) Other non cash charges (57) 151 Changes in working capital 439 (721) (908) (576) (366) Tax (387) (683) (764) (2,110) (1,718) Cash flow fromoperations 2,648 2,362 2,381 7,167 6,120 Capital expenditure (860) (820) (1,828) (3,000) (1,020) Free Cash Flow 1,788 1, ,167 5,100 Other income Investments Cash flow from investments (670) (811) (1,828) (3,000) (1,020) Equity capital raised Loans availed or (repaid) (1,696) (855) Interest paid (288) (110) (18) Dividend paid (incl tax) (304) (546) (509) (1,272) (1,035) Others Cash flow from Financing (2,288) (1,510) (527) (1,260) (1,011) Net change in cash (310) ,907 4,088 Cash at the beginning of the year ,175 Cash at the end of the year ,175 7,264 Balance sheet Y E March (Rs m) FY13 FY14 FY15 FY16E FY17E Share Capital Reserves & Surplus 4,652 6,379 8,470 14,263 18,978 Net Worth 5,029 6,756 8,847 14,640 19,355 Non Current Liabilities Long term borrowing Deferred Tax liabilities Other Loang Term Liabilities Long term Provisions , Current Liabilities Short term borrowings ,197 2,197 2,197 Trade payables 2,400 2,884 3,109 4,994 4,920 Other current liabilities ,633 1,608 Short term provisions ,536 2,065 4,416 4,479 6,841 11,360 10,790 Total Liabilities 10,478 12,178 16,412 26,724 30,869 Assets Net Block 3,765 4,176 5,947 8,257 8,518 Non Current Investments Long term laons & Advances ,182 1,182 1,182 Goodwill Current Assets Inventories 2,668 3,108 3,828 6,243 6,150 Sundry Debtors 2,329 2,734 3,612 4,802 4,731 Cash & Banak Balances ,176 7,264 Other Current Assets Loans & Advances 1,164 1,471 1,200 2,689 2,649 6,322 7,552 8,908 16,910 20,794 Total assets 10,478 12,177 16,412 26,724 30,869 Key ratios Y E March FY13 FY14 FY15 FY16E FY17E EPS (Rs) Core EPS Reported Cash EPS (Rs) DPS (Rs) BVPS (Rs) ROCE 21.3% 26.2% 22.0% 33.7% 22.3% ROE 26.5% 30.0% 29.1% 41.2% 27.8% Inventories Days Sundry Debtors Days Loans & Advances Days Trades Payable Days PER (x) P/BV (x) EV/EBITDA (x) Dividend Yield % 0.3% 0.4% 0.4% 1.1% 0.9% m cap/sales (x) net debt/equity (x) net debt/ebitda (x) (0.0) (0.8) Alembic Pharma (contd...) January 22,

10 Idea Cellular Ltd. Mixed Set of performance: Maintain HOLD with TP of Rs.127 Q3FY16 Result Update January 22, 2016 Current CMP : Rs.114 Rating : HOLD Target : Rs.127 Previous Rating : SELL Target : Rs.127 STOCK INFO Co. Name Bse Nse IDEA Bloomberg IDEA IN Reuters IDEA.BO Sector Telecom Services Equity Capital (Rs mn) 33,100 Face Value (Rs) 10 Mkt Cap (Rs mn) 410,081 52w H/L (Rs) 203/1o9 Avg Daily Vol (Bse+Nse) 5,445,584 SHAREHOLDING PATTERN % (as on Sept. 2015) Institutions 29.2 Others, Incl Public 28.6 Promoters 42.3 Source: BSE STOCK PER. (%) 1m 3m 12m IDEA 18% 25% 29% Sensex 7% 11% 19% Source: Capitaline, IndiaNivesh Research IDEA v/s SENSEX /Jan/15 04/Feb/15 18/Feb/15 04/Mar/15 18/Mar/15 01/Apr/15 15/Apr/15 29/Apr/15 13/May/15 27/May/15 10/Jun/15 24/Jun/15 08/Jul/15 22/Jul/15 05/Aug/15 19/Aug/15 02/Sep/15 16/Sep/15 30/Sep/15 14/Oct/15 28/Oct/15 11/Nov/15 25/Nov/15 09/Dec/15 23/Dec/15 06/Jan/16 20/Jan/16 Source: Capitaline, IndiaNivesh Research IDEA Sensex Rs.mn Q3 FY16 Q2 FY16 Q3 FY15 Q o Q % Y o Y % INSPL est Variance(%) Comments Revenue 90,097 86,891 80, % 12.4% 91, % In line Est EBIDTA 31,286 30,570 27, % 13.7% 33, % Below Est PAT 7,643 8,093 7, % 0.4% 8, % Below Est EPS % 7.2% % Below Est Idea Cellular Ltd (Idea) Q3FY16 result was mixed bag; revenue in line; EBITDA & PAT below our expectations. Top line grew by 12.4% Y/Y (3.7% Q/Q) to Rs 90.1 bn against INSL est of Rs.91.4bn. The revenue growth was led by 16.7% Y/Y (+5.1% Q/Q) increase in total volume minutes and 14.4% Y/Y (+3.2% Q/Q) increase in subscriber addition. During the quarter, minutes of usage per user per month (MoU) increased 1.3% Y/Y (+1.8% Q/Q) to mints (v/s 386 mints in Q2FY16 and mints in Q3FY15). Average revenue per user (APRU) went down 1.7% Y/Y (+0.6% Q/Q) to Rs.176 (v/s Rs.175 in Q2FY16 and Rs.179 in Q3FY15). As expected, ARPM went down to 44.8 paisa on Y o Y basis (v/s 45.3 paisa in Q2FY16 & 46.3 paisa in Q3FY15). EBITDA stood at Rs31.3bn (INSL est: Rs33.3 bn), Up 13.7% Y/Y (+2.3% Q/Q) on account of higher revenue base. The consolidated EBITDA margin stood at 34.7% (v/s 34.3% in in Q3FY15 and 35.2% in Q2FY16). PAT for quarter stood at Rs.7.6 bn (INSL est. Rs.8.7 bn), down 0.4% Y/Y (down 5.6% Q/Q), owing to higher depreciation (Rs.16.2 bn v/s Rs.14.8 bn in Q3FY15) and interest (Rs.3.3 bn v/s Rs 0.9 bn in Q3FY15) expenditures. Valuations At CMP of Rs.114/share, the stock is trading at 6.0x FY16E and 5.7x FY17E EV/EBITDA estimates. Increasing consolidation in the industry and rising capex budgets may lead to reduction in EBITDA margin and higher interest expenditure. Currently street is estimating EBITDA margin of 35.9% in FY17E. In our view, EBITDA margin should contract ~200 bps to 34.0% in FY17E. As a result, we maintain our TP to Rs.127 (6.0x FY17E EV/EBITDA) with HOLD rating on Idea. Daljeet S. Kohli Head of Research Tel: daljeet.kohli@indianivesh.in YE March (Rs. Mn) Net Sales Net Debt PBDIT Adj PAT EPS (Rs) EBITDA Margin (%) ROE (%) P/E (x) EV/EBITDA (x) FY15A 3,15,709 1,37,788 1,08,117 31, x 7.3x FY16e 3,61,487 2,76,134 1,30,135 33, x 6.0x FY17e 4,08,480 3,69,134 1,38,883 25, x 5.7x Amar Mourya Research Analyst Tel: amar.mourya@indianivesh.in IndiaNivesh Research IndiaNivesh Securities Limited Research Analyst SEBI Registration No. INH & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai Tel: (022) IndiaNivesh Research is also available on Bloomberg INNS, Thomson First Call, Reuters and Factiva INDNIV.

11 Q3FY16 Result Update (contd...) Key Results Takeaway Operating KPI s Update Idea registered increase in subscriber base by 5.3 mn resulting in total subscriber base of mn (up 14.4% Y/Y). Voice volume grew by 16.7% Y/Y to 199 bn minutes (v/s 171 bn minutes in Q3FY15). On the sequential basis voice volume increased 5.1% Q/Q due to seasonal upside. MoU/sub increased at 393 minutes relative to 386 minutes in Q2FY16 and 388 minutes in Q3FY15. Blended churn rate increased on y o y/q o q basis to 5.3% from 5.1%/4.2% in Q2FY16/Q3FY15, respectively. During the quarter post paid churn rate stood at 2.8% [v/s 3.2% in Q2FY16 and 2.7% in Q3FY15] and pre paid churn rate was at 5.4% [v/s 5.2% in Q2FY16 and 4.3% in Q3FY15]. ARPU decreased to Rs.176 (v/s Rs.175 in Q2FY16 Rs.179 in Q3FY15). Average revenue per minutes (ARPM) decreased 3.7% Y/Y ( 1.3% Q/Q) to 44.8 paisa. Idea remains the key gainer in MNP with net gain of 17.1 mn subscribers. Idea s VLR subscribers (active subscribers) remain highest in the industry at 103.2% (to mn subscribers) of total subscriber base. The share of VAS (non voice) revenues went up to 28.9% (v/s 27.9% in Q2FY16 and 23.1% in Q3FY15) of total revenue. Total data subscribers increased 21.1%Y/Y to 41.3 mn [v/s 34.2 mn in Q3FY15]. Sequentially, data subscribers remain flat at 41.4 mn [v/s 41.3 mn in Q2FY16]. Average revenue per megabytes (ARMB) stood at 22.3 paisa (v/s 23.4 paisa in Q2FY16 and 26.9 paisa in Q3FY15). The company reported data ARPU of Rs.145 (v/s Rs.144 in Q2FY16 and Rs.126 in Q3FY15). Data contribution to the total services revenue stood at 20.2% [v/s 19.6% in Q2FY16 and 15.7% in Q3FY15]. Non data business contribution to the total services revenue went up to 8.7% (v/s 8.3% in Q2FY16 as % of services rev]. The 3G Cell Sites (EOP) increased 71.4% Y/Y to 47,545 (v/s 27,744 in Q3FY15). Services business EBIDTA Margins update Idea revenues in established and new circles grew by 11.3% Y/Y and 30.9% Y/Y, respectively. Additionally, EBIDTA from established circles (ESA) increased 13.3% Y/Y. The losses in new circles (NSA) contracted to Rs.1.78bn [v/s Rs1.77bn in Q2FY16 Rs.1.88 bn in Q3FY15]. ESA EBITDA margin expanded 64 bps Y/Y to 36.0% on back of strong operational performance. On sequential basis, ESA EBITDA margin contracted 42 bps Q/Q to 36.0% (v/s 36.5% in Q2FY16) due to higher depreciation & interest expenditure. The losses in NSA attributable to expansion of 3G services in new circles (rolled out 1,434 v/s 6,246 3G cell sites in Q2FY16). We believe losses from the new circles could contract going ahead, as data business starts generating higher volumes. Implied Indus EBITDA margins contracted In Q3FY16 revenues from Indus JV (16%) stood at Rs.6.4bn, up 5.8% Y/Y and 1.0% Q/Q. Indus EBITDA for the quarter also went up 4.0% y/y ( 0.9% Q/Q) at Rs.2,773 mn on back of higher revenue base. Indus implied EBITDA margin stood at 43.0% (v/s 43.8% in Q2FY16 and 43.7% in Q3FY15). Indus EBITDA margin to total revenue contracted to 3.1% (v/s 3.3% in Q3FY15). On the sequential basis Indus EBITDA margin to total revenue remain flat at 3.1% (v/s 3.2% in Q2FY16). During the quarter, the owned towers tenancy ratio stood at 1.64 (v/s 1.61 in Q2FY16 and 1.59 in Q3FY15). In Q3FY16, Idea rolled out ~1,760 2G cell sites (v/s ~3,701 in Q2FY16), taking the total 2G cell site base to ~1,22,515. Idea owns 9,640 towers and rest of the sites are rented (64,721 sites to Indus). Capex Update The Capex guidance for FY16E increased to 75 bn (v/s Rs60 Rs65 bn in Q2FY16), excluding any spectrum related payout, on account of 4G rollout. The company s consolidated net debt stood at Rs.362 bn (v/s Rs. 207 bn in Q2FY16) with net debt to equity ratio of 1.4x (v/s 0.83x in Q2FY16). Net debt to forward EBIDTA is at 2.6x (Rs362/Rs138bn) for FY16E. During the quarter, the capex and net debt amounts were higher by around Rs.277 mn each due to de capitalization of amount relating to foreign exchange difference on long term loans taken for acquiring fixed assets. Idea Cellular Ltd. (contd...) January 22,

12 Q3FY16 Result Update (contd...) 3G+Broadband update Idea launched 10,917 (v/s 9,947 in Q2FY16) new sites (2G+3G) and expanded optical fiber network to 1,05,600 km [v/s 1,00,400 km in Q2FY16] in order to strengthen network capacities in NLD, ILD, ISP, Data Services and Devices. During the quarter, out of 172 mn subscriber, the number of customers adopting data services stood at 41.4 mn, now contributing 20.2% to total service revenue. The Data volume grew by 75.8% Y/Y to 80,994 mn MB in Q3FY16 [v/s 46,077 mn MB in Q3FY15]. The active 3G subscriber base for the company now stands at 27.6 mn (v/s 16.1 mn in Q3FY15). Valuations At CMP of Rs.114/share, the stock is trading at 6.0x FY16E and 5.7x FY17E EV/EBITDA estimates. Increasing consolidation in the industry and rising capex budgets may lead to reduction in EBITDA margin and higher interest expenditure. Currently street is estimating EBITDA margin of 35.9% in FY17E. In our view, EBITDA margin should contract ~200 bps to 34.0% in FY17E. As a result, we maintain our TP to Rs.127 (6.0x FY17E EV/EBITDA) with HOLD rating on Idea. Idea Cellular Ltd. (contd...) January 22,

13 Q3FY16 Result Update (contd...) Quarterly Performance Income Statement (Conso) (Rs Mn) Q3 FY16 Q2 FY16 QoQ Ch % Q1 FY16 Q4FY15 Q3 FY15 YoY Ch % Revenue Gross Revenue ESA 84,063 81, ,517 78,995 75, Gross Revenue NSA 6,026 5, ,448 5,170 4, Revenue Standalone 90,089 86, ,965 84,165 80, Indus (@ 16%) 6,450 6, ,231 6,189 6, Spice (@41.09) NM NM Eliminations 6,442 6, ,212 6,129 6, Revenue Consolidated 90,097 86, ,984 84,225 80, COGS ESA 53,768 51, ,207 49,418 48, COGS NSA 7,808 7, ,145 6,919 6, COGS Standalone 61,576 59, ,352 56,337 55, Spice (@41.09) NM NM Indus (@ 16%) 3,677 3, ,560 3,373 3,431 NM Eliminations 6,442 6, ,212 6,129 6,071 NM COGS Consolidated EBITDA 36.0% 36.5% 37.9% 37.4% 35.4% 0.4% EBITDA ESA 30,295 29, ,310 29,577 26, EBITDA NSA 1,782 1, ,697 1,749 1, EBITDA Standalone 28,513 27, ,613 27,828 24, Spice (@41.09) NM NM Indus (@ 16%) 2,773 2, ,671 2,816 2, EBITDA Consolidated % 35.2% 36.7% 36.4% 34.3% Dep & Amort. Break Up 3.1% 3.2% 3.0% 3.3% 3.3% Dep & Amort. Standalone 15,206 14, ,128 13,837 13, Dep & Amort. Spice (@41.09) NM NM Dep & Amort. Indus (@ 16%) 1,025 1, ,031 1,040 1, Dep & Amort Consolidated EBIT EBIT Standalone 13,307 13, ,486 13,991 11, EBIT Spice (@41.09) NM NM EBIT Indus (@ 16%) 1,747 1, ,639 1,776 1, EBIT Consolidated Interest & Finance Cost Break Up Int Cost Standalone Int Income Standalone ,204 1,854 1, Forex Loss/(Gain) Standalone NM NM Int & Fin Cost Standalone 3,175 2, , Int & Fin Cost Spice (@41.09) NM NM Int & Fin Cost Indus (@16%) Int & Fin Cost Consolidated 3,349 2, ,793 1, Dividend from Indus 0 0 NM NM Tax Break Up Tax Standalone 3,518 3, ,525 4,700 3, Tax Spice (@41.09) NM NM Tax Indus (@16%) Tax Consolidated PAT Break Up PAT Standalone 6,614 7, ,401 10,077 6, PAT Spice (@41.09) NM NM PAT Indus (@16%) 1, Divident Eliminations NM NM PAT Consolidated EBITDA Margin % Standalone 31.6% 32.0% % 33.1% 31.0% 63 Consolidated 34.7% 35.2% % 36.4% 34.3% 39 PAT Margin % Standalone 7.3% 8.2% % 12.0% 8.5% 112 Consolidated 8.5% 9.3% % 11.2% 9.6% 108 Key Performance Indicators (KPIs) Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Operating Service Area (EoP) nos Subscriber Base (EoP) mn Average Revenue Per Unit (ARPU) Average Minutes of Use Per User (MOU) Average Realisation per Minute (ARPM) Tenancy Ratio Owned Towers Pre Paid Subs (% of EoP Subscribers) Idea Cellular Ltd. (contd...) January 22,

14 Exide Industries Ltd. Mix set of numbers, Maintain BUY with revised downward target price of Rs. 165 Q3FY16 Result update January 22, 2016 Current CMP : Rs.120 Rating :BUY Target : Rs.165 Previous Rating :BUY Target : Rs.200 STOCK INFO Co. Name EXIDEIND Bse Nse EXIDEIND Bloomberg EXID.BO Reuters EXID IN Sector Auto Ancilliary Face Value (Re) 1 Equity Capital (Rs Mn) 850 Mkt Cap (Rs Mn) 101,150 52w H/L (Rs) 206/118 Avg Daily Vol (BSE+NSE) 1,231,129 SHAREHOLDING PATTERN % (as on Dec. 2015) Institutions Others, Incl Public Promoters Source: BSE STOCK PER. (%) 1m 3m 12m EXIDE 18% 26% 36% SENSEX 7% 12% 17% Source: Capitaline, IndiaNivesh Research EXIDE v/s SENSEX Exide Industries Q3FY16 numbers were as per our expectations on EBITDA and PAT front while below our expectations in terms of revenue. Revenue stood at Rs bn (below our estimates of Rs bn) due to lower than expected volume from OEM and inverter segment along with price cut. The demand from both Automotive OEM and Industrial battery remained subdued while growth in 2W automotive replacement sales (grew by 10% YoY) was better during the quarter. Revenue was lower than our expectation, fell by 2% YoY due to pass through of fall in lead prices to OEM s and continued weakens in inverter sales. The key highlight of the quarter was strong expansion in operating margin due to efficient procurement of raw material and cost cutting measures. EBITDA margin expanded 380 bps YoY to 15.4% due to lower commodity prices and cost cutting measures. Raw material cost (including stock adjustment) contracted by 469 bps YoY and 224 bps QoQ to 62.4% in Q3FY16 (as a percentage of sales) due to fall in lead prices. Employee expenses (as a percentage of sales) increased by 134 bps YoY to 7.79% due to change in bonus policy whereas other expenses (as % of sales) down by 30 bps YoY. Average lead price for the quarter was Rs 135,000/Ton vs Rs 139,000/Ton QoQ, Rs.mn Q3FY16 Q2FY16 Q3FY15 Q o Q % Y o Y % INSL Q3FY16e Variance(%) Revenue EBIDTA Adjusted PAT /01/ /02/ /02/ /03/ /03/ /04/ /04/ /04/ /05/ /05/ /06/ /06/ /07/ /07/ /08/ /08/ /09/ /09/ /09/ /10/ /10/ /11/ /11/ /12/ /12/ /01/ /01/2016 Source: Capitaline, IndiaNivesh Research Daljeet S. Kohli Head of Research Tel: daljeet.kohli@indianivesh.in Abhishek Jain Research Analyst Tel: abhishek.jain@indianivesh.in Aman Vij Research Analyst Tel: aman.vij@indianivesh.in IndiaNivesh Research Exide Sensex Sluggish automotive demand, increasing sub dealer network, higher aggressive sales target, and restricted incentive payment terms for the dealers impacted the sales of Exide in FY16. However, the company is focusing on margin improvement by cost cutting initiatives and technology upgradation. Exide is now clearly focusing on the margin front rather than gaining market share at the cost of profitability. We believe revival in economic growth, falling lead prices and improvement in operating margin due to technology upgradation (benefit expected to accrue from FY17) will augurs well for Exide Revising EPS estimate of FY16E and FY17E and target multiple for FY17E After the sustained slowdown in sales in both segments but improvement in margins due to lower commodity prices and cost control measures, we revise margins and volume estimates for FY16E and FY17E. We revise our FY16E EPS estimates downward by 4% to Rs 7.2 and FY17E EPS estimates by 11% to Rs 8.1. We also revise our target multiple downward for FY17E to 16x vs 18x earlier and thus revise our target price to Rs 165(based on 16xFY17e standalone EPS+ insurance business value of Rs. 35/sh) from Rs 200 earlier. Quick Fundamentals FY16E FY17E (Rs. mn) New Old Change(%) New Old Change(%) Re ve nue , , EBITDA , , EBITDA margin(%) bps bps PAT , EPS (Rs ) Source:Company filings; IndiaNivesh Research IndiaNivesh Securities Limited Research Analyst SEBI Registration No. INH & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai Tel: (022) IndiaNivesh Research is also available on Bloomberg INNS, Thomson First Call, Reuters and Factiva INDNIV.

15 Q3FY16 Result Update (contd...) Total sales de grew by 2% YoY Revenue was below our expectation due to pass through of fall in lead prices to OEM s and continued weakness in inverter sales. Auto replacement segment was also sluggish during the quarter with 4w replacement grew by 5% YoY while 2w replacement growing by 10% in volume terms. Home inverter sales during the quarter declined 10%. Replacement/OEM ratio in Q3 stood at 1.99 x in the 4w segment and 0.56x in 2w segment. Management stated that market share continued to remain strong in most segments: 2w/4w OEM market share stood at 66%/59% respectively, largely unchanged QoQ. Capacity utilization levels stands at ~80% across the automotive and Industrial segments. Management expects the inverter battery segment to de grow 10 15% every year as power situation in the country improves. However, it will be offset by industrial segment growth ~15% over the next 2 years Quick Fundamentals (Rs. Mn) Q3FY16 Q2FY16 Q3FY15 QoQ % YoY % 9mFY16 9mFY15 YoY% Revenue 15,211 17,364 15, ,529 52,223 3 Other Operating Income Total Income 15,247 17,390 15, ,623 52,284 3 Cost of Revenues 12,905 14,815 13, ,047 45,494 5 Raw Materials 9,488 11,220 10, ,557 34,974 7 Other Expenditure 2,217 2,425 2, ,008 7,417 6 Employee Expenses 1,200 1,170 1, ,481 3, EBIDTA 2,343 2,574 1, ,577 6, Depreciation ,157 1, EBIT 1,937 2,191 1, ,420 5, Interest Expense NA Other income PBT 2,011 2,275 1, ,607 5, Provision for taxation ,155 1, PAT 1,340 1, ,452 4,083 9 EPS (RS.) Margin % Basis Points (BPS) BPS EBITDA EBIT PBT PAT EBITDA margin expanded by 380 bps YoY to 15.4% EBITDA margin expanded 380 bps YoY to 15.4% due to lower commodity prices. Raw material cost (including stock adjustment) contracted by 469 bps YoY and 224 bps QoQ to 62.4% in Q3FY16 (as a percentage of sales) due to fall in lead prices. Employee expenses (as a percentage of sales) increased by 134 bps YoY to 7.79% while other expenses (as % of sales) down by 30 bps YoY. The management target of achieving and maintaining EBITDA margins of >15% for the next couple of years look promising considering 1) its focus on more profitable segment, 2) benign input cost (lower lead prices) and 3) its focus on cost cutting & technology and internal efficiencies. The impact of the new technology implementation would kick in post FY17/18E where it targets a 16% EBITDA Margin Cost Analysis (% of Revenue) Q3FY16 Q2FY16 Q3FY15 bps QoQ bps YoY 9mFY16 9mFY15ge in bps Raw Materials (Adj.) 62.4% 64.6% 67.1% % 67.0% 254 Employee Expenses 7.9% 6.7% 6.5% % 5.9% 95 Other Expenses 14.6% 14.0% 14.9% % 14.2% 33 Exide Industries Ltd. (contd...) January 22,

16 Q3FY16 Result Update (contd...) Valuation We believe revival in economic growth, falling lead prices and improvement in operating margin due to technology upgradation will augurs well for Exide. At CMP of Rs. 120 stock trades at 16.4x/14.7x FY16E/17E standalone EPS. We Maintain BUY with revised target price of Rs. 165 (16x FY17E EPS + insurance business value of Rs. 35/share). Standalone Financial Statements Income Statement Period end (Rs mn) FY13 FY14 FY15 FY16e FY17e Net sales 60,714 59,642 68,742 68,555 73,444 Growth (%) 18.9 (1.8) 15.3 (0.3) 7.1 Operating expenses (52,874) (51,475) (59,665) (58,478) (62,502) Operating profit 7,840 8,168 9,077 10,077 10,942 Other operating income 84 EBITDA 7,840 8,252 9,172 10,177 11,043 Growth (%) Depreciation (1,135) (1,256) (1,395) (1,538) (1,694) Other income EBIT 7,464 7,242 8,002 8,859 9,695 Finance cost (42) (12) (17) (17) Exceptional & extradordinary Profit before tax 7,422 7,230 7,985 8,842 9,695 Tax (current + deferred) (2,195) (2,360) (2,527) (2,682) (2,805) P / L form discontinuing operations Profit / (Loss) for the period 5,227 4,870 5,458 6,159 6,890 P/L of Associates, Min Int, Pref Div Reported Profit / (Loss) 5,227 4,870 5,458 6,159 6,890 Adjusted net profit 5,227 4,870 5,458 6,159 6,890 Growth (%) 13 (7) Balance Sheet Period end (Rs mn) FY13 FY14 FY15 FY16e FY17e Share capital Reserves & surplus 33,386 36,465 39,696 45,660 50,746 Shareholders' funds 34,236 37,315 40,546 46,510 51,596 Minority Intersts and others Non-current liablities 1,254 1,312 1, Long-term borrow ings Other non-current liabilities 1,254 1,312 1, Current liabilities 9,994 10,940 11,891 11,485 12,392 ST borrow ings, Curr maturity Other current liabilities Total (Equity and Liablities) 45,484 49,566 54,026 58,396 64,390 Non-current assets 25,657 27,090 30,754 31,899 36,897 Fixed assets (Net block) 10,531 9,678 11,903 16,934 19,928 Non-current Investments 14,595 15,946 17,550 14,310 16,314 Long-term loans and advances , Other non-current assets Current assets 19,827 22,476 23,272 26,498 27,873 current investment 1,807 3,724 1,407 3,650 3,650 Cash & current investment 748 1, ,201 1,075 Other current assets 19,079 21,277 22,974 25,297 26,797 Total (Assets) 45,484 49,567 54,026 58,396 64,390 Balance Sheet Period end (Rs mn) FY13 FY14 FY15 FY16e FY17e Share capital Reserves & surplus 33,386 36,465 39,696 45,660 50,746 Shareholders' funds 34,236 37,315 40,546 46,510 51,596 Minority Intersts and others Non-current liablities 1,254 1,312 1, Long-term borrow ings Other non-current liabilities 1,254 1,312 1, Current liabilities 9,994 10,940 11,891 11,485 12,392 ST borrow ings, Curr maturity Other current liabilities Total (Equity and Liablities) 45,484 49,566 54,026 58,396 64,390 Non-current assets 25,657 27,090 30,754 31,899 36,897 Fixed assets (Net block) 10,531 9,678 11,903 16,934 19,928 Non-current Investments 14,595 15,946 17,550 14,310 16,314 Long-term loans and advances , Other non-current assets Current assets 19,827 22,476 23,272 26,498 27,873 current investment 1,807 3,724 1,407 3,650 3,650 Cash & current investment 748 1, ,201 1,075 Other current assets 19,079 21,277 22,974 25,297 26,797 Total (Assets) 45,484 49,567 54,026 58,396 64,390 Key ratios Period end (%) FY13 FY14 FY15 FY16e FY17e Adjusted EPS (Rs) Growth 13.4 (6.8) CEPS (Rs) Book NAV/share (Rs) Dividend/share (Rs) Dividend payout ratio EBITDA margin EBIT margin Tax rate RoCE Du Pont Analysis - ROE Net margin Asset turnover (x) Leverage factor (x) Return on equity Valuation (x) FY13 FY14 FY15 FY16e FY17e PER Price/Book EV/EBITDA Exide Industries Ltd. (contd...) January 22,

17 Dharmesh Kant VP Equity and Derivatives Strategist Tel: Global Markets Outlook US Markets: U.S. stocks finished higher Thursday, as a sharp rebound by oil futures helped the main indexes rebound from a Wednesday rout that had pushed them below their August lows. Energy, telecommunications and consumer discretionary stocks led the gains. U.S. crude ended $1.18, or 4.2%, higher at $29.53 a barrel after trading as high as $ Traders attributed the price spike to short covering amid oversold conditions in the commodity. The rise comes even as the U.S. Energy Information Administration reported on Thursday that crude inventories rose by 4 million barrels for the week ended Jan. 15. Stocks have moved in lockstep with oil prices as supposedly trading algorithms help to correlate movements between different assets. Hints of more stimulus from European Central Bank President Mario Draghi helped boost stock futures ahead of the market open. Draghi said that the ECB will review and possibly reconsider its policy stance at its next meeting, as global market turmoil raises downside risks. Inflation dynamics are weaker than expected, the ECB president said during the news conference after the central bank left interest rates unchanged. In economic news, initial jobless claims climbed a seasonally adjusted 10,000 to 293,000 in the seven days stretching from Jan. 10 to Jan. 16, the government said Thursday. That is the highest level since last July. The Philadelphia Fed s manufacturing index was in negative territory in January for the fifth month in a row. The index rose to negative 3.5 from negative 10.2, and the index of new orders rose 10 points to negative 1.4. Day s Performance: The S&P 500 rose 9.66 points, or 0.5%, to settle at 1,868.99, with seven of its 10 sectors closing higher. The Dow Jones Industrial Average gained points, or 0.7%, to 15, The Nasdaq Composite closed virtually unchanged at 4, after briefly dipping into negative territory. Set ups on S&P 500, Dow Industrial Average and Nasdaq 100 are back in correction mode. We expect markets to remain volatile where pull backs from lows will be sold into. Emerging markets: Asian indices are trading with mild gains this morning on muted global cues and strenthening crude oil prices. China s central bank this week made its most aggressive cash injection in four years into the country s financial system. The move is seen as a bid to stave off a flight of cash ahead of the weeklong Lunar New Year holiday that starts in early February. The People's Bank of China offered 400 billion yuan ($60.8 billion) worth of short term loans, known as reverse repurchase agreements, to commercial lenders on Thursday via its twice weekly open market operations. After factoring in similar loans offered in the interbank market on Tuesday and maturing loans, the central bank's net cash injection for this week reached 315 billion yuan, the largest of its kind since mid January The move also follows the PBOC's decision earlier this week to inject 600 billion yuan of funds into the banking system via short and mediumterm loans to lenders, which is an alternative form of monetary easing aimed at lowering funding costs in a struggling economy. Bullions & Commodities: Gold is trading at $1099 per troy ounce this morning down (0.02%) from previous close. WTI Crude future is trading at $29.75 per barrel while Brent Crude future is trading at $29.66 per barrel. Currencies: The U.S. Dollar Index tracking the U.S. currency against a basket of six others currencies trading at this morning up 0.15% from previous close. Long term set up on Dollar Index remain strong, a break above 100 on a weekly closing basis will initiate a new up move for a target of 120. Usually, the dollar and U.S. stocks often trade on opposite paths, with a weak dollar seen as providing investors with cheap funding to buy stocks. Plus the dollar s drop generally helps U.S. companies overseas sales. Source: Bloomberg

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(Choose name of company in the list browse companies and select 1 year in icon YTD in the price chart) IndiaNivesh Securities Limited Research Analyst SEBI Registration No. INH & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai Tel: (022) / Fax: (022) e mail: research@indianivesh.in Website: