1. Content Index Monsoon Basics & Historical Details :- Slide #4 Importance of Monsoon :- Slide #6 Monsoon Predictions for current Year :- Slide #8 3 Tactical Positional Ideas with brief :- Slide #12 PI Industries A High Quality Agro-Chemical Stock :- Slide #16 United Phosphorous Global Company with good Upside :- Slide #21 Escorts/ Jain Irrigation High Risk: High Reward Ideas :- Slide #26 Specialists in discovering Multibagger stocks

2. Monsoon Overview Specialists in discovering Multibagger stocks 3. Basics of monsoon An average or normal monsoon means rainfall between 96 and 104 percent of the 50-year average of 89 centimeters during a fourmonth season from June. Rainfall below 90 percent of the average is considered a drought. While the last 3 Years has seen rainfalls, mostly on par with the average there was a big impact in 2009, when there was a drought. Basically the South West Monsoon has the biggest impact in terms of Rains in India. Specialists in discovering Multibagger stocks 4. Monsoon Timeline Time LineRegional CoverageRainfall ImpactJune First WeekKerala CoastArrival of MonsoonOver the Arrival WeekSpreading itself in SouthShowers over Tea, Coffee and Rubber growersFirst 10 Days of MonsoonMostly towards Southern and Eastern partsRainfall in Rice growing areasAround Third week of JuneCovers Half of India over Oil Seed producing areas of Central the Fortnight since Arrival IndiaFirst Week of JulyWestern Regions gets RainfallCotton growers get rainfallMid JulyCovers Entire IndiaA Good Monsoon means the adequate Rainfall must be spread Specialists in discovering Multibagger stocks 5. Monsoon Effect Good monsoons increase prospects for the farm sector. During the past 5 years whenever rainfall has been normal there has been strong agricultural growth. During 2007-08 to 2011-12 there was a normal monsoon for 3 out of the five years which has resulted in positive growth. During 2007-08 when rainfall was 106% of normal, the country recorded agricultural growth of 5.5% and during 2011-12 the agricultural growth was 7% with rainfall of 102% of normal. This can be attributed to low base effect in 2009-10 as there was a deficit monsoon. During 2011-12 the agricultural growth was about 2.8% with rainfall of 101% of normal due to high base effect. During 2008-09 average wholesale inflation was about 8% due to below normal monsoon and about 3.6% in 2009-10.During 2009-10 though the rainfall was 22% below normal inflation was 3.6% due to high base effect. Specialists in discovering Multibagger stocks 6. Importance of Monsoon Benefits of a Good Monsoon Increased output of Grains & Oil Seeds. Encourages Government to export Wheat & Rice. Better Hydro-Electricity production. Sharp Reduction in Food Inflation. Leads to a Strong Rural Economy with a impact of over 1% of overall GDP. In Effect has a huge impact on Retail Cash Flows leading to better FMCG Demand. Its amply clear that, in spite of decreased dependence on Monsoon they still continue to play an important part in several Sectors. Also on Macro Parameters like Inflation and Aggregate demand, Monsoons continue to have a effect but largely diminished from the 1980s. Specialists in discovering Multibagger stocks 7. Current Year monsoon predictions The India Meteorological Department has forecast normal rainfall at 98 per cent of the long period average (LPA) of 89 cm with a model error of plus or minus five per cent during the coming south west monsoon season of 2013. Monsoon forecast models showed that there was 46 per cent probability for the monsoon rainfall to be between 96 per cent and 104 per cent, and 27 per cent probability for it to be between 90 per cent and 96 per cent. Agriculture and allied sectors could achieve a growth of 3.4 per cent this fiscal, if the country receives normal monsoon. This Normal Monsoon can give a good impetus to Rural Economy and also spur more activity considering that, this would be the third consecutive (Hatrick) of decent Monsoon Showers. Several Businesses will take advantage of this to grow. Specialists in discovering Multibagger stocks 8. Risk in these Predictions As it can be clearly seen from the picture on the left, there is much to be desired about our MET projections. Just look at the year of 2009 where there has been a huge divergence in the Monsoon. There has been huge Variations from Forecast to Actual Rainfall in a particular year and hence there is a Risk in these Tactical Calls. Hence, we have gone for relatively Stronger companies in these Tactical Calls and believe that every Speculator should work with strict stop losses in case of a below average Monsoon. Markets have factored to a small extent on the gains of a Good Monsoon and if the script plays out as expected, we can certainly expect a 10-20% up move in these Stocks in a short period of time. Specialists in discovering Multibagger stocks 9. Some Basic Rules which needs to be understood about these Tactical Calls Reason for 3 Bets on the same theme : These Tactical Positions are more Event based and hence its important to play the theme over several Stocks. While the Individual Allocations might look low, all these Stock bets should be looked as one Consolidated Bet. The Internal bets are a combination of different Risk-Reward mix. Strictly maintain Allocation limits, Stop losses & Targets : Tactical Positional Calls are meant to be medium term positions and hence, it is very important to follow strictly on these parameters. Maintain a Good Long Term Portfolio: As any Market participant should know, best way to create Wealth is to build a Solid Portfolio for the longer horizon. These Tactical Bets should not consist of more than 20% of anyones Capital Allocation. Specialists in discovering Multibagger stocks 10. Tactical Calls for this Monsoon Note 1 : Remember all 4 Stocks together form one Tactical Position for Monsoon. Note 2 : Jain Irrigation & Escorts together constitutes the Turnaround call within this Position. Note 3 : Proper Mix of a Bull Stock, Global MNC and Turnaround Ideas taps the opportunity well. Note 4 : PI Industries & United Phosphorous are also good Long Term bets and hence detailed Investment Idea about the stocks has been provided. Expected Time frame on these Calls = 6 to 9 MonthsStock NameIndustryAllocation LimitBuy RangeTarget RangePI IndustriesAgro Inputs2%105-120140-150United PhosphorousAgro-Chemicals2%130-150170-180Jain IrrigationMicro-Irrigation1%Around 6075-90EscortsTractors1%Around 6075-90 Specialists in discovering Multibagger stocks 11. Briefs on the Three Tactical Positions Specialists in discovering Multibagger stocks 12. PI Industries (BUY) Bulls Eye Call Maximum Allocation Limit :- 2 % Exit : Selling Strategy We would intend to exit around the end of this Financial Year or 3Q-FY 13. We believe that the Returns can be even Higher with a slightly longer Time frame considering the Quality. Classification Type : Event based Positional CallMain Reason for Picking PI: Has a formidable Business Model with High Return Ratios and Strong Growth. Current Price : PI Industries = 125 Accumulation Range : PI Industries = 105-120Significant Triggers While PI Industries is a Good Long Term Investment too, this call has been for the medium term in expectation of a Good Sales Momentum. New Product Launch. Normal Monsoon.One Liner on PI Industries Call :PI Industries has been on a Roll for the past 3 Years and the stock has clearly been in a strong upside. In medium term calls, Momentum Stocks generally do well. We believe that with a Good Monsoon, the stock can easily move 20% in the Medium term.Strategy Buy High & Sell Higher. Target Price/ Stop Loss PI Industries = 145 / 90 Time Frame 6 to 9 Months (See : Exit) 13. United Phosphorous (UPL) (BUY) Bulls Eye Call Maximum Allocation Limit :- 2 % Exit : Selling Strategy We would intend to exit around the end of this Financial Year or 3Q-FY 13. Stock has a trigger in the form of earnings over the next 2 Quarters. Classification Type : Event based Positional Call United Phosphorous is not exactly a Monsoon pick considering its Global reach. Its more a trigger based Call, wherein we believe that the next 2 Quarter Results would be better than Market expectations leading to an uptick in its Share price with Monsoon as an Add-On sweetener. One Liner on United Phosphorous Call :While we believe that the Global Agro-Chemicals space is witnessing some traction and UPL being a large player will certainly reduce the Valuation gap with its Peers. This will help us play in the Large Cap space which is the flavour of the season.Main Reason for Picking UPS : Has Strong Brands across the world and quoting at a discount to Global peers. Current Price : United Phosphorous = 152 Accumulation Range : United Phosphorous = 130-150 Significant Triggers Growth in Emerging Markets. Relief from Margin Pressures. Strategy Buy High & Sell Higher. Target Price/ Stop Loss United Phosphorous = 175 / 120 Time Frame 6 to 9 Months (See : Exit) 14. Escorts, Jain Irrigation (BUY) Bulls Eye Call Maximum Allocation Limit :- 2 % (~ 1% in each stock) Exit : Selling Strategy We would intend to exit these Stocks after the next 2 Quarterly results, by which there will be clear sound on their Turnaround in the Markets. Classification Type : Turn-Around Call. Escorts & Jain Irrigation are the High Risk turnaround bets, but considering their timeline of turnaround and their current prices the Risk : Reward ratio is clearly in favour of speculators who can build positions now and exit at a decent profit over the next six months. One Liner on United Phosphorous Call :Turn-Around calls work only when there are already Signs of an early turn-around and the Managements correcting the Problems. Both Escorts and Jain Irrigation are on the path for Strong Turnaround.Main Reason for Picking Escorts & Jain : Both are decent Businesses affected by a temporary problem with potential to turn-around over the year. Current Price : Escorts/ Jain Irrigation = 64/ 68 Accumulation Range : Escorts/ Jain Irrigation = Around 60 Significant Triggers Debt Reduction. Revenue growth after 2 years. Strategy Buy High & Sell Higher. Target Price/ Stop Loss Escorts & Jain Irrigation = 85 / 55 Time Frame 6 Months (See : Exit) 15. PI - Industries Specialists in discovering Multibagger stocks 16. PI Industries A SnapshotPI Industries is a leading player in the Crop protection industry and largely operates under two main segments a) Inputs and b) Custom Synthesis and Contract Manufacturing. Agriculture Inputs : Company is offering plant protection products and specialty plant nutrient products and solutions. A strong rural reach and brand equity backed by a robust pipeline of products, has helped the company to record sustained growth in the sector. Custom Synthesis & Contract Manufacturing : Company is also providing contract research and manufacturing of agrichemicals, intermediates and other niche fine chemicals for global innovators. The company leverages their technical capabilities and strong relationship with global innovators. Specialists in discovering Multibagger stocks 17. Key Highlights Demand GrowthDifferentiated business model- With good monsoon predicted demand for pesticides is likely to be robust. Apart from that a rising MSP for agricultural products has led to increased usage of pesticides there by creating a strong durable demand for pesticides.While most Indian manufacturers focus on off-patent pesticides PI Industries stayed away from the crowded generic space by focusing on IP driven business model by entering into long term inlicensing agreements with MNC players by leveraging its distribution strength and brand equity.PI IndustriesDistribution Reach - The company has a distribution reach of 8000 dealers and distributors apart from 35,000 retailers which is a key determinant to penetrate the market.Strong Relationship with global vendorsExperienced ManagementThe company is an early entrant in the contract manufacturing and custom synthesis business. The company leverages their technical capabilities and strong relationship with global vendors.Company has a very experience Management team which has been able to manage this complex business in a very robust and efficient way and has been able to drive its growth. Specialists in discovering Multibagger stocks 18. Strong Product Portfolio Common Name of Formulation INSECTICIDES Achephae 75 WP Buprofezin 25% SC Chlorfenapyr 10% SC Cypermethrin 25% EC Dinotefuran 20% SG Ethion 40% + Cypermethrin 5% EC Ethion 50% EC Flubendiamide 20% WG Imidacloprid 17.8% SL Metaldehyde 2.5% DP Phorate 10% CG Profenofos 40% + Cypermethrin 4% EC Profenofos 50% EC Profenofos 57% EC Spiromecifen 22.9 SC Thiamethxam 25 WG FUNGICIDES Dimethomorph 50% WP Iprobenfos 48% EC Pyraclostrobin 5% + Metiram 55% WG Tricyclozole 75% WP HERBICIDES Atrazine 50% WP Bispyribac Sodium 10% SC Glyphosate 41% SL Imazethapyr 10 SL SPECIALITY PRODUCTS Seaweed (Ascophyllum nodusum) Granular Seaweed (Ascophyllum nodusum) LiquidBrand Name OVAL PI BUPRO LEPIDO COLT OSHEEN COLFOS FOSMITE FLUTON JUMBO SNAILKIL FORATOX ROKET CARINA SIMBAA VOLTAGE MAXIMA LURIT KITAZIN CLUTCH LOGIK SOLARO NOMINEE GOLD PI GLYPHO INRO BIOVITA Gr BIOVITA Lq Company derives 80% of its agrichemical revenue from its top 10 products. Its key product is Nominee Gold, a rice herbicide which contributes ~INR1bn to PI revenue. Nominee Gold is an in-licensed product launched in FY10 in tie up with Kumiai Chemicals. PI Industries other key products are Biovita (plant nutrient), Roket and Foratox (multi-crop insecticide). Biovita contributes INR0.5bn to PI revenue. To give further boost to its revenue growth, the company launched two in-licensed products, i.e. Voltage in tie up with Bayers and Clutch in tie up with BASF in FY12. In addition, the company has also filed for three molecules and signed four new agreements with respective patent holders to evaluate these products in India. Currently, PI Industries has 13-14 molecules in the custom synthesis businesses that have reached commercial-scale, and at any given point, there would be 25 to 30 molecules in the R&D, pilot / kilo lab. In general, there is a 40-50% probability of R&D molecules attaining commercial-scale. Specialists in discovering Multibagger stocks 19. Earnings Projection Particulars(Rs.Cr) Sales TurnoverMar-11Mar-12Mar-13 Mar-14E Mar-15E837.761002.861151.391431.201748.8 PI Industries revenues areTotal Expenditure750.31891.51970.491230.83Operating Profit87.45111.35180.9200.37expected to grow by about 24% 1503.97 in FY14 and 22% in FY15 driven by rising demand for pesticides. 244.83OPM(%)10.4411.1015.7115.0015.00 PI Industries is expected toInterest Cost20.3221.4521.8128.62Depreciation15.6917.2922.0127.19PBT91.39143.41137.08144.55176.63Tax26.2939.8247.6750.5961.82Tax Rate(%)28.7727.7734.7835.0035.00PAT65.1103.5989.4193.96114.81PAT Margins(%)7.7710.337.776.576.57EPS4.807.656.606.938.47Cash EPS5.9610.588.228.9410.93maintain an OPM of 15% in FY14 34.98 and FY15 due to new product launches and shift in operational 33.23 mix of products. PI Industries PAT in 2014 and 2015 is likely to be around Rs.93.96 Cr and Rs.114.81 Cr respectively .With predictions of a normal monsoon pesticides demand is likely to be robust thereby driving profitability.Specialists in discovering Multibagger stocks 20. United Phosphorous Limited Specialists in discovering Multibagger stocks 21. United Phosphorous A Brief Specialists in discovering Multibagger stocks 22. United Phosphorous A Snapshot United Phosphorus Ltd (UPL) is the leading producer of agriculture chemicals in India and the world. The company produces crop protection products, intermediaries, specialty chemicals and other chemicals. UPL ranks amongst the top 5 post- patent agrochemical manufacturers in the world. UPL has its presence across value added agro inputs ranging from seeds to crop protection and post harvest activities. The company is a global player in this area and has its presence across 120 countries.RegionUPL's Market ShareNorth America(Incl.Canada)Market share increased from 3-4%South AmericaMarket share increased from 1-3%IndiaMarket share increased from 12-17%EuropeMarket Share constant @ 3%ROW(Japan,China,ME,SE Asia,Africa) Market Share currently @ 2% Through acquisitions, strategic alliances and subsidiaries, the company has built a network across the globe. It operates across 21 manufacturing sites (9 in India, 4 in France, 2 in Spain, 1 each in UK, Vietnam, Argentina, Netherlands, Italy and China). UPL has been consistently increasing its market share in all regions where they operate by going for acquisitions which has helped it to penetrate the market and record growth faster than the industry. Specialists in discovering Multibagger stocks 23. Global Player recording fastest growth Over the last decade, UPL has evolved itself from being a small regional player to a leading global player through a spate of acquisitions & organic growth opportunities in emerging countries. UPL, which used to supply technicals initially, is now a leading branded formulations player, with focus on patented & proprietary generic. UPL is the fastest growing global agrochemicals company in the world and it clocked revenue growth of ~20% during 2008-2013 UPL has done 28 acquisitions in last 10 years - which is the highest in India. UPL has leadership position in 10 products globally UPL has strong manufacturing & R&D capabilities with 110 chemistries in which it has in-house expertise. Specialists in discovering Multibagger stocks 24. Earnings Projection Particulars(Rs.Cr)Mar-11Mar-12Mar-13Mar-14E UPL revenues are expected to 10706.20 grow by about 16.44% in FY14 and 13.12% in FY15 driven by 9207.33 strong organic growth in key markets .Revenues5760.687654.729194.52Total Expenditure5017.9766907532.69742.71964.721661.8312.8912.6018.0716.00 OPM of 16% in FY14 and 17% inInterest Cost168.82414.64428.96214.12 FY15 due to shift in operationalDepreciation213.8292.38353.72374.721190.241435.72943.8973.08128.01203.176.148.9221.5222.00 With increase in market share1117.161307.71740.72835.08 markets the company is likely toPAT Margins(%)19.3917.088.067.80EPS25.2429.5516.7418.87Cash EPS30.0736.1524.7327.33Operating Profit OPM(%)PBT Tax Tax Rate(%) PAT1498.87 UPL is expected to maintain an mix of products. UPL PAT in 2014 and 2015 is1070.62 likely to be around Rs.835 Cr and 235.54Rs.803 Cr respectively. and strong prospects for itsincrease its PAT consistently over the years.Specialists in discovering Multibagger stocks 25. Jain Irrigation/ Escorts Limited Specialists in discovering Multibagger stocks 26. Financials - Alone Considering the fact that Jain Irrigation and Escorts has been recommended as Turn-Around bets and not good Long Term Investment opportunity, we have not added any Business Model or details regarding to its Business prospects. We believe there is a Financial turnaround which can be capitalized upon. Hence, we have attached the Financial projections alone.Specialists in discovering Multibagger stocks 27. THANK YOU Specialists in discovering Multibagger stocks