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2QFY2012 Result Update | Capital Goods

October 26, 2011

Jyoti Structures
Performance Highlights
(` cr) Revenue EBITDA EBITDA margin (%) Reported PAT 2QFY12 632.1 68.0 10.8 22.1 2QFY11 542.3 63.1 11.6 24.8 % chg (yoy) 16.5 7.8 (88)bp (10.9) 1QFY12 637.7 70.1 11.0 26.1 % chg (qoq) (0.9) (3.0) (24)bp (15.4)

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Capital Goods 495 0.8 147/58 220,647 2.0 17,289 5,202 JYTS.BO JYS.IN

`60 `78
12 Months

Source: Company, Angel Research

Jyoti Structures (JSL) reported a subdued performance for 2QFY2012 mainly on account of higher interest cost. The companys revenue and EBITDAM were broadly in-line with our estimates. However, higher-than-anticipated increase in interest cost led to disappointment on the earnings front. Increased interest costs have adversely impacted JSLs profitability since the past few quarters mainly on account of stretched working capital requirements and increasing interest rates. However, given the undemanding valuations, a 13% CAGR over FY2011-13E and healthy return ratios, we maintain our Buy view on the stock. Revenue and EBITDA growth in-line; interest costs hurt the bottom line: Steady project execution resulted in revenue growth of 16.5% yoy to `632.1cr (`542.3cr) for 2QFY2012, which was in-line with our expectation of `618.3cr. EBITDA margin witnessed a contraction of ~88bp yoy to 10.8%, in-line with our expectation. Interest costs soared by 49.9%/15.0% yoy/qoq, higher than our expectation, resulting in the bottom line declining by 10.9% yoy to `22.1cr (`24.8cr), against our estimate of `25.2cr. Outlook and valuation: The overall slowdown in the power sector has left transmission EPC companies to reel under pressure as order inflows have slackened. In-line with this, the JSL stock has fallen by ~28% and underperformed the BSE Sensex by ~18% over the last three months. At the CMP of `60, the undemanding valuations (3.9x and 0.6x on PE and PB basis; well below its historic PE multiple average of 13.0x), a 13% CAGR earnings story and reasonable return ratios (~20%) make JSLs stock attractive at current levels. Hence, we continue to maintain our Buy rating on the stock, albeit with a revised target price of `78 by assigning a reasonable multiple of 5.0x to its FY2013E EPS of `15.5.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 27.6 39.3 15.1 18.0

Abs. (%) Sensex JSL

3m

1yr

3yr 98.7 52.1

(6.6) (14.5) (30.3) (55.0)

Key financials (Consolidated)


Y/E March (` cr) Net sales % chg Net profit % chg EBITDA (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010 2,130 15.8 83 (0.9) 10.7 10.3 5.9 1.0 18.6 26.1 0.4 3.5

FY2011 2,400 12.7 100 18.4 11.2 12.1 5.0 0.9 18.7 25.4 0.4 3.4

FY2012E 2,818 17.4 115 14.9 11.0 14.0 4.3 0.7 18.3 23.0 0.4 3.9

FY2013E 3,135 11.3 127 11.1 11.0 15.5 3.9 0.6 17.2 22.4 0.3 2.7

Shailesh Kanani
+91 22 3935 7800 Ext: 6829 shailesh.kanani@angelbroking.com

Hemang Thaker
+91 22 3935 7800 Ext: 6817 hemang.thaker@angelbroking.com

Please refer to important disclosures at the end of this report

Jyoti Structures | 2QFY2012 Result Update

Exhibit 1: Quarterly performance


(` cr) Net Sales Other operating income Total income Stock adjustments Raw Material (% of total income) Erection and sub contracting exp. (% of total income) Employee Cost (% of total income) Other Expenses (% of total income) Total Expenditure EBITDA (EBITDA %) Interest Depreciation Other Income PBT (% of total income) Total Tax (% of PBT) Reported PAT (PAT %) EPS (`)
Source: Company, Angel Research

2QFY12 632.1 0.0 632.1 5.1 352.8 56.6 124.8 19.7 20.5 3.2 60.9 9.6 564.1 68.0 10.8 31.0 5.6 2.0 33.4 5.3 11.3 33.7 22.1 3.5 2.7

2QFY11 542.3 0.0 542.3 3 320.8 59.7 94.7 17.5 16.0 3.0 44.5 8.2 479.2 63.1 11.6 20.7 5.3 0.2 37.4 6.9 12.5 33.6 24.8 4.6 3.0

% chg (yoy) 16.5 16.5 10.0 31.7 27.8 37.0 17.7 7.8 49.9 5.5 (10.7) (10.3) (10.9) (11.0)

1QFY12 637.7 0.0 637.7 (17.8) 388.4 58.1 119.7 18.8 19.7 3.1 57.6 9.0 567.5 70.1 11.0 27.0 5.5 1.3 39.0 6.1 12.9 33.0 26.1 4.1 3.2

% chg (qoq) 1HFY12 (0.9) 1,270 0.0 (12.7) (9.1) 4.2 3.8 5.8 741.2 57.4 244.5 19.3 40.2 3.2 118.5 9.3 1,131.6 (3.0) 15.0 1.2 (14.4) (12.4) (15.4) (15.4) 138.2 10.9 58.0 11.1 3.3 72.4 5.7 24.1 33.3 48.3 6.5 5.9

1HFY11 1,107 0.1 1,107 (10.0) 658.2 58.6 206.5 18.7 33.3 3.0 91.6 8.3 979.6 127.0 11.5 40.6 9.8 0.9 77.5 7.0 26 33.9 51.2 7.8 6.2

% chg (yoy) 14.7 14.7 12.6 18.4 20.5 29.4 15.5 8.7 42.8 12.7 (6.6) (8.3) (5.7) (5.7)

(0.9) 1,269.7

Exhibit 2: Actual vs. estimates


(` cr) Revenue EBITDA PAT
Source: Company, Angel Research

Actual 632.0 68.0 22.1

Estimates 618.3 68.6 25.2

Var. (%) 2.2 (1.0) (12.4)

October 26, 2011

Jyoti Structures | 2QFY2012 Result Update

Top-line and EBITDA performance steady as expected


Steady project execution resulted in revenue growth of 16.5% yoy to `632.1cr (`542.3cr) for 2QFY2012, which was in-line with our expectation of `618.3cr. EBITDA margin witnessed a contraction of ~88bp yoy to 10.8%, as expected, mainly on account higher sub-contracting costs and other expenditure, which rose by ~220bp yoy to 19.5% and 140bp yoy to 9.6%, respectively, as a proportion of sales.

Exhibit 3: Trend in revenue


800 640 480 320 160 0 30.6 25.3 20.7 15.3 13.8 18.0 15.6 16.3 14.7 7.9 16.5 13.0 14.0 7.0 31.8 35.0 28.0 21.0

Exhibit 4: Trend in EBITDA


90 72 54 36 18 0 12.1 13.1 11.6 11.1 11.1 11.4 11.4 11.3 11.6 11.4 11.6 11.0 10.8 15.0 12.0 9.0 6.0 3.0 -

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

Sales (` cr, LHS)

Growth (yoy %, RHS)

EBITDA (` cr, LHS)

EBITDAM (%, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Interest cost continues to hurt bottom-line growth


JSLs bottom line for the quarter declined by 10.9% yoy to `22.1cr (`24.8cr) against our estimate of `25.2cr, which was mainly due to increased interest cost. JSLs interest cost continued to hover at elevated levels (refer exhibit below) despite the company using the proceeds from the NCD issue (at a lower interest rate of 7%) to extinguish higher interest rate bearing debt. Working capital (WC) continued to elongate, leading to increased WC borrowing. Total debt as of 1HFY2012 stood at `570cr, mainly constituted by LCs (`470cr), a jump of ~20% as of FY2011-end levels. Hence, we expect interest costs to remain high for FY2012E and FY2013E at `124cr and `137cr (a yoy increase of 29.2% and 10.6%), respectively.

Exhibit 5: Interest cost (% of sales)


6.0 5.0 4.0 3.0 2.0 1.0 3.7 3.7 3.6 4.5 3.5 3.8 3.8 4.6 4.2 4.9

Exhibit 6: Trend in PAT


40 32 24 16 8 0 4.8 4.6 4.4 4.6 4.6 4.7 4.6 4.5 4.8 4.2 4.4 4.1 6.0 3.5 5.0 4.0 3.0 2.0 1.0 -

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

Adj. PAT (` cr, LHS)

PATM (%, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

October 26, 2011

2QFY12

2QFY12

Jyoti Structures | 2QFY2012 Result Update

Order book growth takes a pause


On account of weak ordering scenario, order inflows declined by 21.4% yoy to `550cr (`700cr) during the quarter, with the order book at `4,375cr. The companys order book was spread across the transmission (60%), substation (22%) and rural electrification (18%) segments. Client wise, the backlog was mainly constituted by PGCIL (35%), MSEDCL (18%), MP State Utility (9%) and private sector (11%). Management remained optimistic about the strong order intake going ahead, with orders worth `1,100cr expected to come within the next two months. Jyoti Africa and Gulf Jyotis order book stood at Rand220mn and US$20mn, respectively.

Exhibit 7: Order book


4,500 4,470 4,150 4,106 4,250 3,959
5,000 4,000
(` cr)

3,000

3,869

4,030

4,100

843

681

665

700

2,000 1,000 -

1,100

543

1QFY10

2QFY10

408

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

418

4QFY11

1QFY12

621

Order backlog
Source: Company, Angel Research

Order inflow

Key highlights of the conference call


Management reaffirmed 20% growth for FY2012E and sustainable margins at 1111.5%. Competitive pressures have intensified in the transmission EPC space. Working capital, mainly receivables from SEB, remains a key concern. Total debtor days ballooned from 160 days to 180 days sequentially. Ordering from PGCIL is likely to gather pace from early next year.

October 26, 2011

2QFY12

550

4,375

Jyoti Structures | 2QFY2012 Result Update

Investment arguments
Robust order book: JSL boasts of a strong order book (1.8x FY2011 revenue), which provides revenue visibility for the next couple of years. Further, performance on the order inflow front from the company has been satisfactory (bagged orders worth `1,200cr in 1HFY2012 in spite of numerous headwinds currently faced by the power sector). Also, management has indicated potential order wins of `1,100cr within the next two months, which will render revenue visibility for FY2013E. Recent commentary from PGCIL also suggested strong ordering in due course. Hence, we expect JSL to win sizable orders on the back of its vast experience and strong presence in the transmission EPC space. Stable operating margins: Management has been pretty selective on choosing orders. As a result, the companys EBITDA margin has been fairly stable (11.011.5%) since the past several quarters, despite pricing pressures. Hence, we do not expect margins to contract going ahead, as our channel checks suggest that the overall business opportunity in the T&D space is increasing and new entrants are finding it difficult to execute their current orders in a profitable manner. Diversifying business model to tackle the current slowdown: JSL has been actively tapping the overseas markets by entering into JVs in South Africa and the Gulf. The company also forayed into the US by setting up a transmission tower plant (estimated cost of ~US$30mn). The plant would have a capacity to manufacture ~36,000tpa of transmission towers (operational by November 2012) with a revenue potential of ~`324cr annually (@100% capacity utilization). In addition, the company recently entered into a JV with Lauren Engineers and Constructors India Pvt. Ltd. with an intent to enter into power plant EPC. The JV company (Lauren Jyoti Pvt. Ltd.) also bagged an order worth `551cr to set a 50MW solar thermal power plant from Godavari Green Energy on a turnkey basis. We believe the potential of these new ventures will materialize gradually and insulate the company from domestic headwinds to some extent.

October 26, 2011

Jyoti Structures | 2QFY2012 Result Update

Outlook and valuation: The overall slowdown in the power sector has left transmission EPC companies to reel under pressure as order inflows have slackened. In-line with this, the JSL stock has fallen by ~28% and underperformed the BSE Sensex by ~18% over the last three months. At the CMP of `60, the undemanding valuations (3.9x and 0.6x on PE and PB basis; well below its historic PE multiple average of 13.0x), a 13% CAGR earnings story and reasonable return ratios (~20%) make JSLs stock attractive at current levels. Hence, we continue to maintain our Buy rating on the stock, albeit with a revised target price of `78 by assigning a reasonable multiple of 5.0x to its FY2013E EPS of `15.5.

Exhibit 8: One-year forward P/E band


350 280 210

(`)

140 70 0

Oct-06

Oct-07

Oct-08

Oct-09

Oct-10

Share Price (`)


Source: Company, Angel Research

5x

9x

13x

17x

Revision in estimates: We have slightly tweaked our estimates for FY2012E and FY2013E to factor in faster execution, current order inflow scenario and higher working capital requirements on the back of increased debtor levels.

Exhibit 9: Revised estimates


FY2012E Earlier estimates Revenue EBITDA PAT
Source: Company, Angel Research

FY2013E Var. (%) 2.0 2.0 (8.3) Earlier estimates 3,087 340 150 Revised estimates 3,135 345 127 Var. (%) 1.6 1.4 (15.1) 2,818 310 115

Revised estimates

2,763 304 125

Exhibit 10: Angel EPS forecast vs. consensus


Y/E March FY2012E FY2013E
Source: Company, Angel Research

Angel forecast 14.0 15.5

Bloomberg consensus 15.3 15.3

Var. (%) (8.7) 1.4

October 26, 2011

Oct-11

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Jul-07

Jul-08

Jul-09

Jul-10

Jul-11

Jyoti Structures | 2QFY2012 Result Update

Exhibit 11: Peer comparison


Company ABB* Areva T&D* BHEL BGR Energy Crompton Greaves JSL KEC International Thermax Reco. Sell Neutral Neutral Buy Accum. Buy Buy Neutral CMP Tgt. price (`) 707 223 316 318 139 60 57 444 578 153 78 88 Upside/ (18.2) 10.1 29.4 55.4 P/BV(x) 5.6 4.7 3.1 1.9 2.5 0.7 1.3 3.3 4.9 3.9 2.5 1.7 2.1 0.6 1.0 2.7 P/E(x) 48.2 27.8 11.2 7.0 16.6 4.3 5.8 13.1 33.1 19.7 9.9 7.6 10.9 3.9 4.5 12.2 FY2011-13E 166.8 20.6 13.7 (3.6) (5.9) 13.0 23.1 6.6 RoCE (%) 15.0 24.0 41.2 19.7 16.6 23.0 22.0 32.6 20.6 26.9 37.6 16.1 21.6 22.4 24.1 30.4 RoE (%) 12.2 17.9 30.3 30.6 15.6 18.3 24.8 27.5 15.7 21.6 27.7 23.4 20.7 17.2 25.6 24.2 (`) (Downside) (%) FY12E FY13E FY12E FY13E EPS CAGR FY12E FY13E FY12E FY13E

Source: Company, Angel Research;*Note: December year ending

October 26, 2011

Jyoti Structures | 2QFY2012 Result Update

Profit and loss statement (Consolidated)


Y/E March (` cr) Operating income % chg Total Expenditure Raw Materials Mfg costs Personnel Costs Other Costs EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earnings of asso. Less: Minority interest (MI) Prior period items PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E 1,374 41.3 1,198 893 171 36 99 176 39.2 12.8 7 169 40.1 12.3 47 2 1.2 123 39.8 123 49 39.6 75 75 75 34.3 5.4 9.2 9.2 33.5 1,839 33.9 1,632 1,204 220 46 162 208 18.0 11.3 10 198 17.2 10.7 69 6 4.2 134 9.0 134 49 36.7 85 85 85 14.2 4.6 10.4 10.4 13.5 2,130 15.8 1,901 1,250 378 72 201 229 10.2 10.7 18 211 6.7 9.9 80 6 4.6 138 2.3 1 137 53 38.7 83 83 84 (0.9) 4.0 10.3 10.3 (1.3) 2,400 12.7 2,132 1,345 459 77 250 268 17.2 11.2 21 247 17.1 10.3 96 5 3.1 156 13.5 156 56 36.1 100 100 100 18.4 4.2 12.1 9.7 (5.4) 2,818 17.4 2,508 1,627 523 88 269 310 15.7 11.0 24 286 16.0 10.2 124 7 4.1 170 8.7 170 55 32.5 115 115 115 14.9 4.1 14.0 14.0 14.9 3,135 11.3 2,790 1,783 605 105 298 345 11.3 11.0 27 318 11.2 10.2 137 7 3.7 189 11.1 189 61 32.5 127 127 127 11.1 4.1 15.5 15.5 11.1

October 26, 2011

Jyoti Structures | 2QFY2012 Result Update

Balance sheet (Consolidated)


Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves & Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Deferred Tax Asset Current Assets Cash Loans & Advances Inventories Debtors Others Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 114 46 68 2 10 821 14 109 79 500 118 333 488 2 570 190 55 135 4 17 1,133 39 228 153 712 550 583 1 740 244 69 175 2 17 1,350 54 185 247 863 665 684 878 283 87 196 8 17 1,572 67 180 231 1,093 722 850 1,071 318 111 208 4 17 2,157 37 211 288 1,621 959 1,198 1,426 358 137 221 4 17 2,094 151 235 299 1,409 914 1,179 1,421 16 322 338 225 7 570 16 402 419 313 9 740 16 475 491 369 18 878 16 560 576 477 18 1,071 16 665 681 727 18 1,426 16 783 799 604 18 1,421 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

October 26, 2011

Jyoti Structures | 2QFY2012 Result Update

Balance sheet (consolidated)


Y/E March (` cr) Profit before tax Depreciation (Inc)/Dec in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/Dec.in Fixed Assets (Inc.)/Dec. in Investments 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 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E 123 7 (122) (2) (49) (42) (17) 3 2 (13) 0.1 64 (8) 2 57 5 9 14 134 10 (70) (6) (49) 20 (80) (7) 6 (81) 0.1 88 (9) 7 79 25 14 39 138 18 (86) (6) (53) 10 (58) 6 (52) 0.1 56 (10) 10 47 15 39 54 156 21 (152) (5) (56) (36) (50) 5 (45) 108 (14) 2 93 13 54 67 170 24 (379) (7) (55) (247) (30) 7 (23) 250 (10) 240 (30) 67 37 189 27 132 (7) (61) 279 (40) 7 (33) (123) (10) (133) 114 37 151

October 26, 2011

10

Jyoti Structures | 2QFY2012 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 OB/Sales Per Share Data (Rs) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value DuPont Analysis(%) EBIT margin Tax retention ratio (%) Asset turnover (x) RoIC (Pre-tax) RoIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) RoCE (Pre-tax) Angel RoIC (Pre-tax) RoE Turnover ratios (x) Asset Turnover (Gross Block) (X) 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 0.6 1.2 3.6 0.7 1.3 2.9 0.6 1.4 2.6 0.7 1.5 2.6 1.0 2.2 2.3 0.6 1.3 2.3 13.0 21 115 85 110 12.1 23 120 91 101 9.8 34 135 111 101 9.1 36 149 113 107 9.4 34 176 114 126 9.3 34 176 114 127 33.6 34.5 24.7 30.2 31.7 22.6 26.1 27.8 18.6 25.4 27.2 18.7 23.0 24.1 18.3 22.4 24.0 17.2 12.3 60.4 2.8 34.5 20.8 14.6 0.6 24.5 10.7 63.3 2.9 31.5 19.9 16.2 0.6 22.4 9.9 61.3 2.8 27.7 17.0 14.3 0.6 18.7 10.3 63.9 2.6 27.0 17.3 14.4 0.7 19.2 10.2 67.5 2.4 23.9 16.2 13.9 0.9 18.2 10.2 67.5 2.4 24.0 16.2 13.9 0.8 17.9 9.2 9.2 10.1 0.8 41.6 10.4 10.4 11.6 0.9 51.3 10.3 10.3 12.5 1.0 59.8 12.1 12.1 14.7 1.5 70.1 14.0 14.0 16.8 1.0 82.9 15.5 15.5 18.7 1.0 97.2 6.6 6.0 1.4 1.3 0.5 4.0 1.2 2.3 5.8 5.2 1.2 1.5 0.4 3.7 1.0 2.0 5.9 4.8 1.0 1.7 0.4 3.5 0.9 1.9 5.0 4.1 0.9 2.5 0.4 3.4 0.8 1.9 4.3 3.6 0.7 1.7 0.4 3.8 0.8 1.8 3.9 3.2 0.6 1.7 0.3 2.7 0.7 1.8 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

October 26, 2011

11

Jyoti Structures | 2QFY2012 Result Update

Research Team Tel: 022 - 3935 7800

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 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 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 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 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 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 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 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

Jyoti Structures 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%)

October 26, 2011

12