GMR Infrastructures3.amazonaws.com/zanran_storage/€¦GMR Infrastructure Initiating coverage: We...

Company ReportIndustry : Infrastructure

GMR Infrastructure

Future gains gestated

Rupa Shah ([email protected])

+91-22-6632 2244

GMR Inrastructure

2 February 5, 2009

Prabhudas Lilladher Pvt. Ltd. and/or its associates (the 'Firm') does and/or seeks to do business with companies covered in its research reports. As a result investors

should be aware that the Firm may have a conflict of interest that could affect the objectivity of the report. Investors should consider this report as only a single factor

in making their investment decision.

Please refer to important disclosures and disclaimers at the end of the report.

Contents

Page No.

Investment Highlights ...............................................................4

Indian traffic growth shows a healthy trend .................................................... 4

GMR holds one-fourth share… .................................................................. 6

Land side sweetener added ....................................................................... 7

Power portfolio...present projects add significant value ..................................... 8

Roads, majority projects to commission in the near future ................................. 9

Investment Concerns .............................................................. 10

Huge requirement of funds; failure to secure could dampen the revenues .............. 10

Fluctuations in air traffic and acceptability of non-aero facilities ........................ 11

Uncertainties in regulations .................................................................... 11

Execution capabilities ........................................................................... 11

Valuations & Segmental analysis ................................................. 12

Business segments ................................................................. 12

Power ............................................................................................... 12

InterGen ........................................................................................... 13

Valuations ........................................................................................14

Roads ............................................................................................... 14

Valuations ........................................................................................15

Airports ............................................................................................ 15

Indira Gandhi International Airport (DIAL) ..................................................16

Valuation ......................................................................................... 17

Rajiv Gandhi international airport (HIAL) .................................................... 19

Valuation ......................................................................................... 20

Sabiha Gokcen International Airport (SGIAL) ................................................. 22

Valuations ........................................................................................22

Financials............................................................................ 24

Risk to our valuations ........................................................................... 24

Q3FY09 …the worst maybe over ................................................................ 25

Forth Quarter…would show signs of improvement ........................................... 26

GMR Infrastructure

� Initiating coverage: We initiate coverage on GMR Infrastructure with an

Accumulate rating and a SOTP-based one year target price of Rs81. Over the past

few years, this company has emerged as one of the leading infrastructure

developers with key interest in airports, power and road assets. We believe that

GMR, though on a learning curve, will be a major beneficiary from the huge

investments committed in the 11th plan, and growing aviation sector.

� Air traffic to stabilize: Civil aviation sector has been exhibiting an extraordinary

growth rate since 2006; 46.5% in 2006 and 32.5% in 2007. By 2020, Indian airports

are estimated to handle approximately 100m passengers and cargo in the range of

3.4m tones p.a. As GMR holds a 26% share in the airport traffic, we expect the

company to be a major beneficiary.

� Power projects have a ready cash flow: GMR currently has a small operational

power portfolio (824MW) with much larger power projects (5420MW GMR and

Intergen 13000MW) in pipeline, which are expected to come up in the next five

years. After the initial hiccups, the current projects are now on stands and fully

operational.

� Road projects to provide steady returns: GMR has actively participated in NHAI's

road BOT stretches and currently has projects with an asset capitalization of

Rs32bn. Three of these projects are operational and the balance are expected

to occupy traffic by FY2010E.

� Valuations: The CMP of Rs70 discounts GMR's FY09E, FY10E and FY11E P/BV by

2.0x, 2.0x and 1.9x respectively. We have valued GMR on SOTP basis, taking into

consideration the projects which exhibits revenue visibility in the near future.

We have valued the three airports (Rs30), four power projects (Rs17), six BOT

projects (Rs10), DIAL Aerocity at NPV (Rs9), HIAL airport land (Rs3), Intergen

(discount to buy price Rs -3) and net cash as on date (Rs14). Our view takes into

consideration the present slowdown and its effects on aviation and other sectors,

and to that extent are conservative. Future power projects achieving financial

closure, improvement in airport traffic, real estate would bring in potential upsides.

Key Financials (Y/e March) FY08 FY09E FY10E FY11E

Revenue (Rs m) 22,948 38,055 44,459 54,033

Growth (%) 35.2 65.8 16.8 21.5

EBITDA (Rs m) 5,985 10,849 13,262 16,796

PAT (Rs m) 2,101 1,631 1,886 2,473

EPS (Rs) 1.2 0.9 1.0 1.4

Growth (%) (78.1) (22.4) 15.7 31.1

Net DPS (Rs) — — — —

Profitability & Valuation FY08 FY09E FY10E FY11E

EBITDA margin (%) 26.1 28.5 29.8 31.1

RoE (%) 1.3 0.7 0.7 0.9

RoCE (%) 1.4 1.5 1.3 1.4

EV / sales (x) 9.0 7.0 7.3 6.5

EV / EBITDA (x) 34.6 24.5 24.6 21.0

PE (x) 60.7 78.1 67.6 51.5

P / BV (x) 2.1 2.0 2.0 1.9

Net dividend yield (%) — — — —

Source: Company Data; PL Research

Price Performance (RIC:GMRI.BO, BB:GMRI IN)

Source: Bloomberg, PL Research

Rating Accumulate

Price Rs70

Target Price Rs81

Implied Upside 15.7%

Sensex 9,091

(Prices as on February 5, 2009)

Trading Data

Market Cap. (Rs bn) 127.4

Shares o/s (m) 1,820.7

Free Float 25.9%

3M Avg. Daily Vol (‘000) 2,107.3

3M Avg. Daily Value (Rs m) 141.3

Major Shareholders

Promoters 74.1%

Foreign 8.5%

Domestic Inst. 8.5%

Public & Others 8.9%

Stock Performance

1M 6M 12M

Absolute (16.6) (34.0) (62.9)

Relative (4.7) 5.7 (11.3)

Source: Company Data; PL Research

Company ReportFebruary 5, 2009

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GMR Inrastructure

4 February 5, 2009

Investment Highlights

Indian traffic growth shows a healthy trend

The makeover of long-awaited Indian airports started two years back on account

of a higher GDP growth (leading to an increase in the per capita consumption),

emergence of India on the world map as the most promising business destination/

attractive tourist place, birth of low cost carriers (LCCs) and robust infrastructure

funding. The drive to modernize existing airports (Brownfield expansion) and

development of new airports (Greenfield expansion) by the GoI and Airport Authority

of India (AAI) started three years ago on the basis of Public Private Partnership

(PPP).

Indian airports are one of the busiest airports in the world and they are still

growing. The Indira Gandhi International Airport (DIAL) had recorded the highest

growth in air passenger movement in the world in 2006 (Source: ACI).

Traffic growth for various cities

Source: Company Data

Expected growth in traffic

FY07 FY08 FY09E FY10E FY11E FY12E

ATM (‘000) 954 1,087 1,241 1,420 1,628 1,871

YoY gr. (%) — 13.9 14.2 14.4 14.6 14.9

PAX (‘00000) 867 1,027 1,218 1,447 1,722 2,054

YoY gr. (%) — 18.5 18.6 18.8 19.0 19.3

CAR (‘000 mt) 1,560 1,735 1,932 2,153 2,402 2,683

YoY gr. (%) — 11.2 11.4 11.4 11.6 11.7

Source: AAI

The CAGR of passenger traffic (PAX), Air Craft Movments (ATM) and Cargo (CAR)

from FY06-08 stood at 26.2%, 24.9% and 10.4%, respectively, to which the existing

facilities could not cater to.

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Mumbai Delhi Chennai Banglore Kolkatta Hyderabad

(%)

FY07 FY08

GMR Infrastructure

February 5, 2009 5

International passenger traffic has seen a CAGR of 15.4% from FY06-08, on account

of increasing importance of India on the world map. A CAGR of 30.7% for domestic

PAX during FY06-08 was driven by an increase in LCC's and increasing cross-state

business/leisure activities. The traffic in the existing airports is also expected

to grow as each of the them don't have a second airport (as in the case of

International destinations) and the new development cannot take place within

150 kms radius for the first 25 years of commercial operations.

Though the cargo traffic has grown aggressively over a period of time, Indian

airports do not have world class facilities to handle peak loads. Thus, there has

been an impetus to develop cargo complexes in DIAL and Mumbai airport (MIAL)

to cater to the air-bound cargo traffic.

The Indian aviation sector has felt the heat and has been heading towards a

slowdown since January 2008 on account of spiralling ATF prices, meltdown of the

global economy and lack of airport infrastructure.

To combat this slowdown, the GoI and AAI have taken various steps which are as

under:

1. Custom duty on import of ATF has been abolished.

2. The State Government has been persuaded to reduce the sales tax on

ATF. Government of Andhra Pradesh and in certain cases Government of

Rajasthan has reduced the sales tax on ATF to 4%. Government of

Maharashtra has also reduced sales tax on ATF, from 25% to 4% for flights

originating from airports other than Pune and Mumbai.

3. The oil companies have also allowed a delay in dues of airline companies

over six months.

4. Owing to a fall in global crude prices, the oil companies have been reducing

ATF prices since September 2008.

5. The infrastructure at the airports, air traffic control and navigation is

being constantly upgraded to meet the future demand of the airlines.

GMR Inrastructure

6 February 5, 2009

GMR holds one-fourth share…

GMR controls 27% of the PAX in India through DIAL and Rajiv Gandhi International

Airport (HIAL).

PAX distribution in FY08

Source: Company Data, AAI

For FY06-08, PAX, ATM and CAR grew at a CAGR of 31.5%, 26.5% and 20.6%,

respectively in HIAL, beating the national average. With a comparatively larger

base, DIAL, over the same period of FY06-08, recorded PAX, ATM and CAR at a

CAGR of 21.5%, 17.6% and 6.33%, respectively.

Growth in Airport Traffic (%)

CAGR FY06-08 HIAL DIAL

PAX 31.5 21.5

ATM 26.5 17.6

CAR 20.6 6.3

Source: Company Data, AAI

GMR took over the task of developing India's first greenfield airport in Hyderabad

with a PAX capacity of 12m and a CAR capacity of 0.1m MTs. HIAL at present

stands at 3.5 (scale 1 to 5) in service standards and is one of the finest airports

in Asia. DIAL, on other hand is a brownfield expansion, where GMR in Phase 1

would expand the PAX capacity from 26m to 37m before the Common Wealth

Games in 2010, after which the proposed capacity expansion is pegged at 100m

by FY2035. Post expansion, we expect the company's market share to improve in

the overall pie.

Delhi

21%

Hyderabad

6%

Mumbai

22%

Other 42 Airports

42%

Chennai

9%

GMR Infrastructure

February 5, 2009 7

GMR is well placed to capture the benefits of a healthy traffic growth in the

future, with a robust build-up of modern amenities and expansion in airports.

The company has partnered with world class airport operators and has negotiated

favourably for leasing space (franchise model) with commercial partners. This is

expected to take care of the non-aero revenues as well as detach the company

from non-aero business development. GMR has plans to expand the non-aero

revenues which are currently at 25% to 50%-60 %(at par with international standards).

As the non-aero revenues are not regulated by AAI and are in the form of regular

lease rentals, the success of airport concessions will be determined by the overall

response to these amenities. The company has contracts with renowned commercial

space operators with decent yearly escalation clauses, ensuring a healthy growth

in non-aero revenues.

Apart from Indian airports, GMR has also won the concession of Sabiha Gokcen

International Airport (SGIAL) in Istanbul, Turkey. The company is responsible for

development of non-aero amenities and will be allowed to collect revenues for

non-aero operations.

Land side sweetener added

Apart from owning and regulating these airports, one of the major attractions for

the developers is the land given in lieu of airport development. AAI has granted

commercial rights on some part of the land allocated for airport development to

GMR for real estate/SEZ development. The developers in return are eligible to

encash on the land side upsides from these properties. The cash flow generated

from this is expected to be used for future investments for the airport and other

investments.

In fact, land side development plays a major part in bidding of airports. The

revenue from these developments is not capped or regulated and thus, has immense

potential for upsides and determines the very viability of the concession.

GMR has also been allocated land for realty and SEZ development.

Land allocation at Airports

Airports Acres

HIAL 1,500

DIAL 250

Total 1,750


GMR Inrastructure

8 February 5, 2009

The company intends to encash the land through development of a hospitality

district in DIAL (Aerotropolis). Similarly, GMR has plans for an Aviation MRO and

multi product SEZ for 500 acres in HIAL. However, in the present realty market

situation, we expect that the company may defer these plans to a later stage. In

case of DIAL, GMR's land development plans had to undergo delays on account of

revenue share issue with AAI, though the matter has now been resolved (GMR will

share 46% with AAI). To sum up, these land banks are at strategic locations and

will add value to the airport portfolio sooner or later.

Amidst difficulties GMR has finally put out 45 acres of land and the bidding has

received decent response.

Power portfolio...present projects add significant value

GMR has three operational projects (824MWs), which are earning tariffs ranging

from Rs3 to Rs8 per unit.

GMRs power portfolio

Operational MW Planned MW

GMR Intergen GMR Intergen

824 7,658 5,420 5,108


Power revenues have been a major component in the consolidated revenues for

GMR in the past and we expect the trend to continue, though diminish gradually.

Keeping in view the present power shortages of nearly 50000 MWs and no major

capacity addition, we expect GMR's three operational plants to earn robust margins

in the future.

Installed Capacity in GW 11th Plan

Source: CEA, Company Data

We expect GMR Power Corporation to be cash positive in FY09, while Mangalore

and Vemagiri plants to achieve this in FY10 on account of re-location and closure

on account of gas availability, respectively.

0

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GMR Infrastructure

February 5, 2009 9

Proposed mix of fuel


Apart from the operational projects, the company has seven attractive projects

mainly in hydro and thermal power segments, which would add value to the company

in the future.

While the airport revenues are expected to pickup smoothly on account of a

recent meltdown in the start-up years, the present revenues from power will

provide the stability to the overall revenue growth.

Roads, majority projects to commission in the near future

GMR has six BOT projects, of which three are operational, and the others are

expected to be operational by FY10. Three annuity projects will de-risk revenues

from traffic fluctuations, while the toll-based projects are located at attractive

stretches, bringing stability in BOT earnings. As these projects were started two

years before, the cost of construction was to some extent alienated from the

rising interest and commodity cost. Thus, on account of medium stretches and

lower cost of funds invested, we expect the road portfolio to give good returns

post FY14.

Coal

67%

Liquid Fuel

13%

Hydro

20%

GMR Inrastructure

10 February 5, 2009

Investment Concerns

Huge requirement of funds; failure to secure could dampenthe revenues

GMR has a huge equity capital commitment to the tune of Rs200bn for investments

in different phases of DIAL, road and power projects. This is apart from the total

debt required to be tied-up for different projects in the next 5-6 years to the tune

of approximately Rs300bn. The developments of DIAL are hugely dependent on

the availability of funds and in case of any failure, present expansion and future

revenues will get impacted adversely. On the other hand, as these projects are

highly leveraged, debt at higher interest rates will keep the PAT subdued if not

adequately compensated by PAX and non-aero revenue growth.

GMR had plans for funding the capex for Phase 1B of DIAL through real estate

deposits to the tune of Rs27bn from realty developers. However, this plan hasn't

materialized till now on account of revenue sharing issue with AAI. Nevertheless,

the promoters have infused money (Rs17.5bn) to fund the on-going construction

and will infuse the balance, if required. However, GMR has also put forward the

demand to AAI for charging airport development fees (ADF) and hike in airport

charges to compensate for the delay in land developments and make up for the

balance fund infusion.

On the same grounds, we expect the six power projects to find it difficult to

achieve financial closure on account of liquidity crunch and viability of PPP projects

(except Kamlangana, which has achieved a financial closure upto 90%). We expect

these projects to get deferred by at least 1-2 years, on account of non-availability

of funding. There can also be a case of cancellation or re-bidding of the projects,

if the terms are not favourable to either of the parties.

With regards to the Intergen acquisition, as the majority stake lies currently with

the promoter group company GMR Holdings, GMR's balance sheet currently has

not been burdened by the debt to that extent. However, as and when the debt

appears on the GMR balance sheet (on account of CCD conversion) along with the

interest payments, the company could face some financial challenges.

GMR Infrastructure

February 5, 2009 11

Fluctuations in air traffic and acceptability of non-aerofacilities

Despite a healthy growth in air-time traffic (CAGR OF 13%) witnessed in the last

10 years, Indian airports are currently prone to de-growth in PAX on account of

global liquidity crises, repeated terrorist attacks and emergence of newer business

destinations. This slowdown can be seen as the domestic passenger growth declined

to negative 3.8% for international PAX and 21.7% for domestic PAX during the

period from January 2008 to November 2008. However, international air traffic

has not suffered more under the shadow of recent terror attacks (a 7.3% YoY

growth and 9.3% QoQ in November). Wider fluctuations in air traffic YoY and

some damp patches can make developer run into huge losses. However, the traffic

growth in the long run normalizes especially when there are limited numbers of

airports in a particular region.

India, being a developing economy, much of the domestic crowd is new to the

very idea of shopping at the airport. The viability of food courts and duty free

shops are dependent on the financial position of the domestic crowd and the

average time spent at airport lobbies. However, the international crowd is expected

to contribute to non-aero revenue growth to a large extent. On account of a

prolonged aviation lull, the terms and conditions of lease rentals can be re-

negotiated which can affect the revenue growth.

Uncertainties in regulations

As the very idea of airport development/re-development is new to AAI, there are

certain issues which remain unclear. The airport developers were first allowed

complete access to the revenues from land-side development, which was later re-

considered and a share in revenues was made mandatory(5.5% revenue share in

DIAL is with the AAI for land side development). Also, the new airport development

within 150kms radius of the existing one has been given a thought for relaxation

on account of a strong demand for another airport from certain pockets (like Navi

Mumbai and Noida). Thus, the very success of airport leans in either direction on

account of changes in the rules and regulations.

Execution capabilities

GMR has a huge portfolio of projects, where the timely completion depends upon

its contractors, vendor and clients. Thus, non-availability of funds and terms

with partners can put a break on the projects, leading to cost overrun.

Also, larger power projects with longer construction period put the cost of

construction in question vis-a-vis the tariffs/bids entered into. Traffic risk on

BOT toll-based projects may also render a project unviable.

Huge projects requiring mammoth financial investments, superior technological

expertise and strong bargaining power are the key areas that GMR has to now

look into, inorder to make the projects viable.

GMR Inrastructure

12 February 5, 2009

Valuations & Segmental analysis

We have valued GMR on SOTP basis, encompassing values of three airports (air

side revenues) on DCFE basis/COE - 14%, four power plants on DCFE basis/COE -

12% (Kamalanga at 15%), six road BOT projects on DCF basis/WACC - 10%, DIAL

Aerocity at NPV with lower land prices, HIAL land at discount to CMP, net standalone

cash as on date and debt taken for Intergen (at a discount to the acquisition

price).

SOTP (Rs)

DIAL 12 NAV-COE 14%

HIAL 13 NAV-COE 14%

SGIL 5 NAV-COE 12%

POWER 17 COE 12%

ROAD 10 WACC 9%-10%

LAND 12 Discount to CMP/NAV

Net Cash on std b/s Current 14 As on FY08

Intergene (3) 10% Discount to the purchase price

Total 81

Source: PL Research

Our valuations are based on the projects which show revenue visibility and are

arrived taking into consideration the present liquidity crunch in the economy and

its effects. Thus we expect a good upside from our valuations on account of

improvement in air traffic (with decreasing air fares), ease in lending scenario

and demand push in real estate market.

Business segments

Power

GMR through its subsidiary GMR Energy (GEL) has interest in 13 power projects.

GMR's power portfolio comprises two natural gas, one LSHS, two coal and five

hydro power projects. Three power projects are currently operational and seven

are in different phases of achieving financial closure.

Working power projects and capacitates

Metrics Vemagiri Chennai Mangalore

Location Andhra Pradesh Tamil Nadu Karnataka

Capacity(MW) 387.6 200 220

Fuel Natural Gas Low Sulphur Heavy Stock Naphtha/Natural Gas

PPA 2009-2021 2009-2014 2009-2024

Clients PPA/ Merchant PPA Merchant/PPA


GMR Infrastructure

February 5, 2009 13

Planned, capacities and commissioning

Power Plants Location Capacity (MW) PPA Clients

Kamalanga Orrisa 1050 2012-2037(Exp) PPA/ Merchant

Chattisgarh Chattisgarh 1050 2012-2052(Exp) PPA/ Merchant

Badrinath Uttaranchal 300 2013-2058(Exp) PPA/ Merchant

Talong Arunachal Pradesh 160 2014-2054(Exp) PPA/ Merchant

Bajoli Holi Himachal Pradesh 180 2015-2055(Exp) PPA/ Merchant

Upper Karnali Nepal 300 2015-2045(Exp) PPA/ Merchant

Upper Marsyangdi Nepal 250 2015-2045(Exp) PPA/ Merchant


Kamalanga, GMR's 1050MW coal-based power plant, has completed financial closure

to the extent of 90%, and has a tie-up with Haryana and Orissa government for

power supply. The total capex for Kamalanga is Rs45.4bn and will be funded in a

D/E of 3:1. Of the present working plant, only Mangalore plant will require some

capex for relocation/conversion in FY09. The working plants have a tie-up for

PPA with respective state governments and they are also allowed to sell power on

merchant basis.

Power plant tariffs (Rs / Unit)

GMR Powr Corp 8.3

Vemagiri 3

Manglore 4.5

Source: PL Research

InterGen

GMR had acquired a 50% stake in InterGen, which has total power assets of

13000MW for US$1bn. The company operates in locations like UK, Mexico,

Netherlands, Philippines and Australia. The average age of power assets is

approximately 5.5 years. Approximately 80% of the power assets that InterGen

has are gas-based, while the balance are coal-based. Currently, 7658MW are in

the operational phase and the rest are in the development stage. InterGen was

acquired by the GMR group for gaining a global footprint and technological

synergies. This acquisition, we believe, would bring in synergies for GMR in terms

of technology and pre-qualification required for bidding higher MW range projects

domestically (UMPPs) and internationally.

The entire transaction is funded through a 10% equity commitment and balance

through bridge loan. We have not valued this acquisition on revenue terms though

the debt of US$1bn is expected to be serviced by GMR Infrastructure, on account

of conversion of CCDs in FY12E. We believe that in the present situation, this

acquisition is a little expensive. We have rather valued the Intergen acquisition

on the basis of debt taken, translating into a negative per share value of Rs3 to

GMR.

GMR Inrastructure

14 February 5, 2009

Valuations

We have valued three operational power projects, alongwith Kamalanga (50%

discount to FCFE) on account of project visibility on DCFE basis and have arrived

at a per share value of Rs17. We have assumed a moderate escalation in tariffs

and expect no major funding requirement (apart from Kamalanga), except for

working capital. As the other projects are in the process of achieving financial

closure, we have not valued them at present, though they are expected to add

value to GMR's power portfolio.

GMRs power valuation

FCFE basis Per share value

GMR Corp 2.0

Vemagiri 4.7

Manglore* 5.4

Kamlangana 5.0

Total 17.0

Source: PL Research * Includes 5 months operation at higher tariffs

Roads

GMR has a healthy mix of road BOT's in the space of annuity (3) and toll (3). Two

of the annuity projects and one toll are already operational, while the balance is

in different stages of construction.

Annuity projects details

Project Tuni-Anakapalli Tambaram-Tindivanam Ponchapalli

Length Km 59 93 86 + O&M 27

Concession duration May 2002-Nov 2019 May 2002-Nov 2019 Oct 2006-Oct 2026

Years 20 years 20 years 20 years

Project Cost Rs m 3040 3900 6900

Financial Closure June 2002 June 2002 September 2006

Annuity Rs(p.a) 590 802 1083

Status Operational Operational 85% construction complete. COD April 2009


Toll porjects details

Project Ambala- Chandigarh Faruknagar-Jadcheria Tindivanam-Ulundurpet

Length Km 35 46 + O&M 25 73

Concession duration May 2006-May 2026 Aug 2006-Aug 2026 Oct 2006-Oct 2026

Years 20 years 20 years 20 years

Project Cost Rs m 4830 4713 7950

Financial Closure May 2006 August 2006 October 2006

Status Operational 98% construction complete. 90% construction complete.

COD Feb 2009 COD April 2009


GMR Infrastructure

February 5, 2009 15

Valuations

We have valued the entire BOT road segment on DCF basis and have arrived at a

per share value of Rs10. As these projects were financially closed before two

years, the company has been able to get financing at cheaper rates, thus covering

the capex funding.

SOTP (Rs)

Annuity

Tuni-Anakapali 0.46

Tambaram-Tindivanam 0.22

Pochanpalli 1.21

Ann Val 1.89

Toll

Amabal-Chandigard 1.88

Jadcheria 1.94

Ulundurpet 4.16

Toll Val 7.98

TOTAL 9.87

WACC 10-12%

Source: PL Research

Airports

GMR has entered into a concession of development and operation of two airports:

DIAL and HIAL. The company took over the Delhi Airport and is responsible for

brownfield expansion, while the Hyderabad Airport was a greenfield project.

GMR intends to maximize value from expansion of non-aero revenues and land

side developments, with stable returns from aero side.

GMR Inrastructure

16 February 5, 2009

Indira Gandhi International Airport (DIAL)

DIAL- Consortium Partners


The development of DIAL is spread across five phases and is expected to be

completed by FY2035.

GMR

50%

AAI

26%

Malaysia Airport

10%

India Development

Fund

4%

Fraport

10%

DIAL development phases

Phase Completion Date Pax Carco Cap Scope of Work Runways(m pa) (mtones pa)

1A March '08 26 0.54 T1 & T2 expansion 1 Old + 1 New

July '08 26 0.54 New Departure Terminal 1 Old + 1 New

1B March '10 37 0.64 New T3 1 Old + 1 New

2 March '15 50 0.90 T3 Expansion, Cargo Complex Upgradation 1 Old + 1 New

3 March '20 66 1.40 New T4 1 Old + 2 New

4 March '25 80 2.10 New T6, New cargo complex 2 Old + 2 New

5 March '35 100 3.60 New T5 2 Old + 2 New


Project details

Concession period (Yrs) 30+30

Revenue Share 45.99% with AAI

Land available (acres) 5100

Estimates Project Cost (Rs bn) 292


Financial Plan

Options Rs bn

Equity & Internal Accrual 147

Debt 145

Source: Company Data, PL Research

The present phase under construction Phase 1B is a greenfield integrated terminal,

expected to be completed by March 2010.

GMR Infrastructure

February 5, 2009 17

Phase 1- Funding plan

Options Rs bn

Equity 12.0

Internal Accrual 0.40

Quasi Equity (or advance against clients) 27.5

Debt 49.5


The planned funding had incorporated Rs27.5bn from advances against realty

lease rentals, which has been delayed. The promoters have put in a quasi equity

to the tune of Rs17.5bn and the rest is expected to come in from advance deposits

from commercial developers or from airport development fees.

Valuation

The revenue pattern of DIAL will follow a CPI-X (WACC 11.6%) model post FY2011,

while in FY09 and FY10 charges of AAI will be levied. Provided the traffic growth

sustains, DIAL will incur capex in the range of Rs10-20bn every two years post

FY2009 for capacity expansion in phases, which will also increase depreciation

and interest charges till FY2025 and thus subdue the profits. However, we expect

that with a growth in PAX, the operating expenses will decline. Since the fixed

charges are expected to even-off, the PAT margins will have a scope of

improvement post FY20. We also expect an expansion in non-aero revenues with

growth in PAX and decent escalation in lease rentals.

Our valuation is based on a 60 years concession model and incorporates revenues

from air side only. On account of dullness in the aviation sector in India, we have

assumed a moderate growth in passenger traffic in FY09 and FY10. We have also

taken a conservative stance on the usage on non-aero facilities. We expect that

the capex post Phase 2 would be funded equally through debt and equity/internal

accruals.

The land side revenues arising from full 250 acres, Aerocity is expected to take

some time to materialize. However, GMR is in the process of inviting bids for the

first parcel of 45 acres for development of a hospitality district. This land parcel

is divided into 13 asset classes for which the bids were received. The development

will cover 6.12m sqft, including hospitality area of 5m sqft and commercial

development of 1.1m sqft.

We have valued Aerocity on NPV basis taking lower land rates. On account of the

present stillness in the realty market and revenue share issue with AAI, our

valuations to that extent are exposed to criticalities relating to changes in

regulations.

GMR Inrastructure

18 February 5, 2009

DIAL valuation summary

Y/e March FY09E FY10E FY11E FY12E FY38E FY66E

TRAFFIC

Passenger Capacity 26 26 37 37 100 100

Passenger (mppa) 24.21 26.63 29.29 32.22 109.27 125.00

Growth 1.0% 10.0% 10.0% 10.0% 3.0% 1.0%

Domestic 16.95 19.97 21.97 24.17 65.56 75.00

Domestic Pax proportion 70.0% 75.0% 75.0% 75.0% 60.0% 60.0%

International 7.26 6.66 7.32 8.06 43.71 50.00

International Pax Proportion 30.0% 25.0% 25.0% 25.0% 40.0% 40.0%

Air Traffic Movement 250,152 274,682 301,641 345,818 893,500 893,500

Passenger ATMs 240,450 264,495 290,945 334,586 876,000 876,000

Growth 4.0% 10.0% 10.0% 15.0% 5.0% 2.0%

Domestic 180,338 198,371 218,208 250,940 569,400 569,400

Domestic ATM Proportion 75.0% 75.0% 75.0% 75.0% 65.0% 65.0%

International 60,113 66,124 72,736 83,647 306,600 306,600

International ATM Proportion 25.0% 25.0% 25.0% 25.0% 35.0% 35.0%

Cargo ATMs Traffic 9,702 10,187 10,696 11,231 17,500 17,500

Growth 5.0% 5.0% 5.0% 5.0% 3.0% 3.0%

Cargo Tonnage 454,506 477,231 501,093 526,148 2,215,319 4,320,000

Growth 5.0% 5.0% 5.0% 5.0% 5.0% 3.0%

Total Aeronautical Revenues 3,846 4,546 5,873 8,222 1,000 -

Aero Related Revenues 3,652 4,404 4,929 5,604 72,824 493,634

Total Non Aeronautical Revenues 3,903 4,949 16,020 17,387 166,734 525,797

Aero Revenue Proportion 33.7% 32.7% 21.9% 26.3% 0.4% 0.0%

Non - Aero Revenue Proportion 66.3% 67.3% 78.1% 73.7% 99.6% 100.0%

Revenues 11,400 13,899 26,822 31,213 240,559 1,019,431

AAI Revenue Share 5,244 6,394 12,338 14,358 110,657 468,938

Net Revenues 6,156 7,506 14,484 16,855 129,902 550,493

Operating costs 4,978 4,279 6,573 6,980 45,833 187,822

Operating profit 1,179 3,226 7,911 9,875 84,069 362,671

Other income 6 15 10 20 282 1,209

EBIDTA 1,185 3,241 7,921 9,896 84,351 363,879

PBT 777 2,439 73 1,197 74,941 361,614

PAT after minority interest 389 1,105 37 600 25,347 119,968

Cost of equity 14%

GMR's Equity Value 21,761

Value per Share 11.96

GMR Infrastructure

February 5, 2009 19

Rajiv Gandhi international airport (HIAL)

HIAL was the first greenfield airport project which commenced operations on

March 23, 2008.

HIAL- Consortium Partners


Development Phases

Phase I Phase IV

Completion Date 2010 2035

Pax Capcity (m) 12 40

Cargo Capacity (metric tons) 100000 350000

Runways 1 2

Pax terminal bldg. area (m sq.ft) 1.17 3.9


Project details

Concession period (Yrs) 30+30

Revenue Share 4% with AAI

Concession Fee 4% of revenue

Land available (acres) 5,500

Estimates Project Cost (US$ m) 620


Financial Plan Phase 1

Options Rs m

Equity & Internal Accrual 3,780

Debt/ Preference shares 16,780

IFL 3,150

Grant 1,070


GMR

63%

Malaysia Airport

11%

Govt Of AP

13%

AAI

13%

GMR Inrastructure

20 February 5, 2009

Valuation

Unlike DIAL, HIAL's revenues are not regulated by CPI-X model and thus have a

scope to grow with an increase in the traffic. Also, we believe that CPI-X model

for regulation on revenues would not make the project viable as the passenger

traffic of both airports is not comparable.

Being a greenfield development, the airport has a permission to levy User

Development Fee (UDF) for every departing domestic and international passenger.

The other differentiating factor from DIAL is absence of any major capex in

coming years. Thus, with a moderate increase in traffic flow YoY and expansion

of non-aero revenues, the EBITDA is expected to grow in the immediate future.

Our valuation is based on a 60 years model and incorporates revenues from aero

side only. On account of dullness in the aviation sector in India, we have assumed

a moderate growth in the passenger traffic. We have also taken a conservative

stance on the usage on non-aero facilities.

The land side revenues arising from 1500 acres are expected to take some time

to materialize. We have valued the land (without development) separately, based

on discount to current prices prevailing in the market. On account of the present

silence in the realty market, our valuations to that extent are conservative and

have a scope of upside, going forward.

GMR Infrastructure

February 5, 2009 21

HIAL valuation summary

Y/e March FY09E FY10E FY11E FY12E FY39E FY68E

TRAFFIC 12 12 12 12 40 40

Passenger Traffic 7,129,800 7,486,290 8,609,234 9,900,619 48,000,589 50,000,000

Growth 2.0% 5.0% 15.0% 15.0% 2.0% 1.0%

Domestic 5,525,595 5,614,718 6,241,694 6,930,433 33,600,412 35,000,000

Domestic Pax Proportion 77.5% 75.0% 72.5% 70.0% 70.0% 70.0%

International 1,604,205 1,871,573 2,367,539 2,970,186 14,400,177 15,000,000

International Pax Proportion 22.5% 25.0% 27.5% 30.0% 30.0% 30.0%

Passenger ATMs 89,964 97,161 106,877 117,565 272,445 405,196

Growth 8.0% 8.0% 10.0% 10.0% 2.0% 1.0%

Domestic 76,469 77,729 80,158 82,295 190,711 283,637

Domestic ATM Proportion 85.0% 80.0% 75.0% 70.0% 70.0% 70.0%

International 13,495 19,432 26,719 35,269 81,733 121,559

International ATM Proportion 15.0% 20.0% 25.0% 30.0% 30.0% 30.0%

Cargo ATMs 1,759 3,308 4,426 4,735 21,000 21,000

Total Aeronautical Revenues 2,491 3,127 4,432 5,200 13,506 46,106

Total Aero Related Revenues 663 947 1,180 1,442 10,027 35,935

Total Non Aeronautical Revenues 1,590 1,769 1,890 2,087 25,448 98,887

Revenues 4,744 5,843 7,502 8,729 48,981 180,928

AAI's Revenue share 190 234 300 349 1,959 7,237

Net Revenue 4,554 5,609 7,202 8,380 47,022 173,691

Operating costs 2,080 2,243 2,413 2,598 13,403 38,603

Operating profit 2,475 3,366 4,790 5,782 33,619 135,087

Other income 31 40 64 100 6,962 40,230

EBIDTA 2,506 3,406 4,854 5,882 40,581 175,317

PBT (247) 702 2,255 3,121 40,505 175,317

PAT after Minority Interest (138) 392 1,259 1,743 16,929 73,273

Cost of equity 14%

GIL's Equity Value 24,520

Contribution per share 13.47

GMR Inrastructure

22 February 5, 2009

Sabiha Gokcen International Airport (SGIAL)

SGIAL in Istanbul (Turkey) is GMR's international venture of airport development

which involves massive expansion of the current airport. The company is

responsible for constructing non-aero facilities. In return, GMR will be allowed to

collect non-aero revenues.

Istanbul Consortium Partners


Project details

Concession period (Yrs) 20

Concession Fee EUR 1.93bn

Estimates Project Cost (Euro m) 451


GMR is in charge of providing modern amenities for aircraft maintenance like

PCA System Revenue and Power Unit Revenue apart from usual facilities like

check-in counters, airline office space, food courts etc. We have assumed a

yearly amortization of the concession fee.

Valuations

Our valuations are based on a 20 years model. This airport would not require any

capex in the future; this would make revenues a pure play of passenger traffic

and usage of facilities by the airlines. We expect the facilities to get a robust

response, as this airport is targeted to be the hub for Euro-American airlines.

GMR

40%

Limak

40%

Malaysia Airport

20%

GMR Infrastructure

February 5, 2009 23

SGIAL valuation summary

Y/e March FY09E FY10E FY11E FY12E FY28E

TRAFFIC

Passenger Traffic 5,413,928 6,226,018 7,159,920 7,875,912 25,000,000

Growth 12.0% 15.0% 15.0% 10.0% 5.0%

Air Traffic Movement 52,985 58,193 64,711 70,810 191,475

Cargo ATMs 4,782 5,170 5,325 5,485 8,802

Total Cargo 70,104 80,620 92,713 101,984 123,858

Growth 15.0% 15.0% 15.0% 10.0% 0.0%

Aviation Revenue 3,206 4,126 4,804 5,437 16,213

Non Aviation Revenue 2,904 4,562 4,997 5,421 33,892

Total Revenues 6,110 8,688 9,801 10,858 50,105

Revenues 6,110 8,688 9,801 10,858 50,105

Operating costs (incl concession fees to SSM) 2,034 2,909 8,115 8,445 25,530

Operating profit 4,076 5,779 1,687 2,413 24,576

Other income 45 133 187 196 2,912

EBIDTA 4,121 5,912 1,874 2,608 27,487

PAT after Minority Interest 1,201 1,706 (653) (359) 8,239

Cost of equity 12%

GIL Equity Value 9,704

Value per share 5.33

GMR Inrastructure

24 February 5, 2009

Financials

We expect GMR to post consolidated revenue of Rs38bn (65% YoY growth), Rs44.0

(16.8% YoY growth) and Rs54.0bn (21% YoY growth) in FY09E, FY10E and FY11E,

respectively. From FY09E, we expect the airport to clinch only a 35% share in

overall revenues. However, the revenue combination may undergo a change YoY,

on account of damp patches in power and specially in the airport sector. We

expect GMR's EBITDA margins improve in FY09E on account of power plant

operations for five month and commencement of road BOT projects. We expect

GMR to post a consolidated PAT (after minority interest) of Rs1.6bn, Rs1.9bn and

Rs2.5bn, respectively from FY09E, FY10E and FY11E, respectively. We expect

GMR's DIAL Phase 1, regular operations of HIAL, SGIAL, power and road BOT

projects to drive top-line CAGR of 33% and PAT CAGR of 25% from FY08-11E.

Risk to our valuations

Fluctuations in revenues and profits are expected on account of:

� Airport and road BOT revenues are a function of traffic; thus, they are

highly volatile and are subject to damp patches between the years.

� Regulation of power traffic and non-availability of gas and coal can affect

the working of power plants (which was the case in FY09E).

� The induction of Intergen debt in GMRs balance sheet (expected sooner)

will have a sizeable impact on Debt/Equity ratio and the interest charges.

� On the same grounds, a low traffic as against higher depreciation on

account of capex and higher input coast can damp the EBITDA and NET

margins.

� Higher debt levels for future power projects and DIAL rather than our

assumptions, will result in higher interest cost and thus reduce the PAT.

� Real estate forms a one-fourth part of our overall valuations. Any further

downside in prices or land issues may affect the land value.

The CMP of Rs70 discounts GMR's FY09E, FY10E and FY11E P/BV by 2.0x, 2.0x

and 1.9x, respectively. We initiate coverage on the stock with an Accumulate

rating and twelve-month SOTP target price of Rs81.

GMR Infrastructure

February 5, 2009 25

Q3FY09 …the worst maybe over

GMR posted a 79.3% YoY growth in Q3FY09 on account of addition of Hyderabad

airport and two power plants in the revenue stream. Higher tariffs in power

plants and better margins in annuity projects lead to a 198bps YoY improvement

in EBITDA margins. Interest and depreciation continued to balloon on account of

rising interest rates and increased capex in DIAL. The company also booked a

forex loss of Rs 252m along with higher tax leading to a 69.3% YoY decline in PAT

to Rs 246m. PAT after minority interest stood at Rs 409m.

Q3FY09 Result Overview (Rs m)

Y/e March Q3FY09 Q3FY08 YoY gr. (%) Q2FY09 9MFY09 9MFY08 YoY gr. (%)

Net Sales 9,592 5,350 79.3 8,468 26,914 13,941 93.1

Expenditure

Consumption of Fuel 3,167 2,513 26.0 2,772 9,787 5,861 67.0

% of Net Sales 33.0 47.0 32.7 36.4 42.0

Generation and Operating Expenses 2,032 494 311.3 1,626 4,748 1,400 239.1

% of Net Sales 21.2 9.2 19.2 17.6 10.0

Personnel Cost 748 428 74.6 809 2,369 1,313 80.4

% of Net Sales 7.8 8.0 9.5 8.8 9.4

General & Administration Expenses 767 416 84.5 790 2,274 1,253 81.5

% of Net Sales 8.0 7.8 9.3 8.4 9.0

Total Expenditure 6,714 3,851 74.3 5,997 19,177 9,627 99.2

EBIDTA 2,878 1,499 92.0 2,471 7,737 4,314 79.4

Margin (%) 30.0 28.0 29.2 28.7 30.9

Depreciation 1,146 366 213.5 855 2,803 1,211 131.4

EBIT 1,732 1,134 52.8 1,616 4,934 3,102 59.0

Interest 1,132 340 232.9 709 2,530 1,009 150.7

Other Income 80 273 (70.7) 70 219 470 (53.4)

Forex Loss/Gain (252) 10 NA (589) (1,299) 183 NA

PBT 428 1,076 (60.2) 389 1,325 2,746 (51.8)

Tax 182 275 (33.9) 60 344 533 (35.4)

Taxe Rate (%) 42.5 25.6 15.5 26.0 19.4

Recurring Pat 246 800 (69.3) 329 980 2,214 (55.7)

Margin (%) 2.6 15.0 3.9 3.6 15.9

Minority Interests (163) 160 (138) (313) 613

Net Profit 409 641 (36.2) 466 1,293 1,601 (19.2)


For 9MFY09, GMR clocked a 93% YoY growth in sales with an EBITDA margin of

28%. The PAT was subdued to Rs 980m a 55.7% YoY de-growth on account of

higher interest and depreciation cost. PAT after minority interest stood at Rs

1.3bn, registering a 19.2% YoY de-growth.

GMR Inrastructure

26 February 5, 2009

Forth Quarter…would show signs of improvement

We expect the Q4FY09 sales numbers to rise as compared to Q3FY09 levels (sales

at Rs 11bn,25% YoY grt and 15.7% QoQ grt) on account of some pick up in PAX,

addition of Ambala Chandigard BOT traffic and all power plants functioning for

full quarter. However the EBITDA margins would also remain stable as power plant

higher EBITDA would off-set higher airport and new BOT road project expenses.

Thus, higher sales and robust power margins are expected to push Q4FY09 PAT.

However, the fourth quarter would be crucial to watch as we have expected the

air traffic to improve,power plants to run at best PLFs and lower forex losses.

GMR Infrastructure

February 5, 2009 27

Income Statement (Rs m)

Y/e March FY08 FY09E FY10E FY11E

Net Sales 22,948 38,055 44,459 54,033

Expenditure

Generation and Operation exps 12,297 22,380 25,074 29,211

% of Net Revenues 53.6 58.8 56.4 54.1

Admn. and other expenses 4,666 7,571 6,124 8,026

% of Net Revenues 20.3 19.9 13.8 14.9

Total Operational Expenses 16,963 29,951 31,197 37,237

EBIDTA 5,985 10,849 13,262 16,796

EBIDTA Margin (%) 26.1 28.5 29.8 31.1

Net Interest 1,687 4,250 5,400 6,272

Depreciation 1,785 3,900 4,800 6,200

EBIT 2,513 2,699 3,062 4,324

EBIT Margin (%) 11.0 7.1 6.9 8.0

Other Income 698 250 500 710

Exceptional Items - 1,500 - -

PBT 3,210 1,449 3,562 5,034

Tax Provision 584 420 1,175 1,661

Efeective Tax Rate (%) 18.2 29.0 33.0 33.0

PAT 2,627 1,881* 2,386 3,373

Net Profit Margin (%) 11.4 4.9 5.4 6.2

Minorities & Others 526 250 500 900

Net Profit 2,101 1,631 1,886 2,473

EPS (Rs) 1.2 0.9 1.0 1.4

CEPS (Rs) 2.1 3.0 3.7 4.8

No of Shares (mn) 1,821 1,821 1,821 1,821


* Adjusted for 5 months Mangalore Power Plant Profit at higher tariffs

GMR Inrastructure

28 February 5, 2009

Balance Sheet (Rs m)


Sources of Funds

Share Capital 3,641 3,641 3,641 3,641

Reserves & Surplus 57,531 59,357 61,444 64,117

Total Shareholders Funds 61,172 62,998 65,085 67,758

Deferred Tax Liability (net) 425 500 700 1,000

Secured Loans 68,438 123,363 180,536 209,978

Unsecured Loans 11,331 15,450 17,864 15,265

Total Debt 79,769 138,813 198,400 225,243

Minority Interest 11,126 12,500 13,963 14,962

Total Liabilities 152,492 214,811 278,148 308,963

Application of Fund

Gross Block 66,917 122,417 172,417 212,417

Less : Accum. Depreciation 14,218 18,118 22,918 29,118

Net Block 52,699 104,299 149,499 183,299

Capital WIP 36,796 57,766 75,401 71,502

Preoperative Expenses 8,432 9,767 13,304 16,801

Investments 48,996 33,111 28,512 24,854

Current Assets, Loans & Adv. 19,230 28,401 37,802 44,511

Inventories 380 650 1,000 1,500

Sundry Debtors 4,116 13,500 11,000 16,000

Cash and Bank Balance 8,945 1,472 3,232 4,810

Loans and Advances 5,731 12,727 22,514 22,154

Other Assets 58 53 56 47

Less : Current Liab. & Prov. 13,661 18,533 26,371 32,004

Current Liabilities 12,779 17,082 23,987 29,783

Provisions 882 1,452 2,384 2,222

Net Current Assets 5,570 9,868 11,432 12,507

Total Assets 152,492 214,811 278,148 308,963


Cash Flow (Rs m)


Cash from operations 6,488 (6,842) 7,383 10,075

Cash from investing 71,883 39,615 45,401 36,341

Cash from financing 61,340 38,985 39,778 27,844

Net change in cash (4,055) (7,473) 1,760 1,577

Opening cash balance 13,000 8,945 1,472 3,232

Closing cash balance 8,945 1,472 3,232 4,810


GMR Infrastructure

February 5, 2009 29

Key Ratios


Return Ratios (%)

RoCE 1.4 1.5 1.3 1.4

RoE 1.3 0.7 0.7 0.9

Growth (%)

Sales 35.2 65.8 16.8 21.5

EBITDA 10.1 81.3 22.2 26.6

PAT 8.6 (28.4) 26.9 41.3

EPS (78.1) (22.4) 15.7 31.1

Liquidity

Current Ratio 1.4 1.5 1.4 1.4

Balance Sheet Ratios

Debtor Days 63 84 101 91

Creditor Days 209 182 240 264

Debt-Equity (x) 1.3 2.2 3.0 3.3

Per Share Ratios (Rs)

EPS 1.2 0.9 1.0 1.4

BV 33.6 34.6 35.7 37.2

CEPS 2.1 3.0 3.7 4.8

FCPS (35.9) (25.5) (20.9) (14.4)

Margins (%)

EBITDA 26.1 28.5 29.8 31.1

PAT 9.2 4.3 4.2 4.6

Tax Rate 18.2 29.0 33.0 33.0

Valuations (x)

PER 60.7 78.1 67.6 51.5

P/CEPS 32.8 23.0 19.1 14.7

P/BV 2.1 2.0 2.0 1.9

EV/EBITDA 34.6 24.5 24.6 21.0

EV/Sales 9.0 7.0 7.3 6.5

Market Cap/Sales 5.6 3.3 2.9 2.4


This document has been prepared by the Research Division of Prabhudas Lilladher Pvt. Ltd. Mumbai, India (PL) and is meant for use by the recipient only as

information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of PL. It should

not be considered or taken as an offer to sell or a solicitation to buy or sell any security.

The information contained in this report has been obtained from sources that are considered to be reliable. However, PL has not independently verified the

accuracy or completeness of the same. Neither PL nor any of its affiliates, its directors or its employees accept any responsibility of whatsoever nature for

the information, statements and opinion given, made available or expressed herein or for any omission therein.

Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as

well. The suitability or otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advice should be sought

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We may from time to time solicit or perform investment banking or other services for any company mentioned in this document.

Prabhudas Lilladher Pvt. Ltd.

3rd Floor, Sadhana House, 570, P. B. Marg, Worli, Mumbai-400 018, India.

Tel: (91 22) 6632 2222 Fax: (91 22) 6632 2209

PL’s Recommendation Scale

BUY : Over 15% Outperformance to Sensex over 12-months Accumulate : Outperformance to Sensex over 12-months

Reduce : Underperformance to Sensex over 12-months Sell : Over 15% underperformance to Sensex over 12-months

Trading Buy : Over 10% absolute upside in 1-month Trading Sell : Over 10% absolute decline in 1-month

Not Rated (NR) : No specific call on the stock Under Review (UR) : Rating likely to change shortly

Rating Distribution of Research Coverage

13.4%

45.7%

37.0%

3.9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Buy Accumulate Reduce Sell

% o

f T

otal

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