1QFY2014 Result Update | Media July 18, 2013

DB Corp
Performance Highlights
Quarterly Results (Consolidated)
(` cr) Revenue EBITDA OPM (%) PAT 1QFY14 449 133 29.6 76 1QFY14 377 79 20.8 44 % yoy 19.2 69.1 873bp 74.1 4QFY13 398 94 23.6 55 % qoq 12.9 41.4 596bp 37.8

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Media 4,543 (38) 0.4 267/181 22,110 10 20,128 6,038 DBCL.BO DBCL@IN

`248 `302
12 Months

Source: Company, Angel Research

For 1QFY2014, DB Corp (DBCL) reported a robust top-line and bottom-line performance, beating our expectations as well as street estimates. Its top-line grew 19.2% yoy to `449cr, primarily due to a robust 20.4% yoy growth in advertising revenue to `325cr (mainly driven by higher yields). Sectors such as lifestyle, education, automobile, FMCG and real-estate have contributed to strong growth in advertising revenues. The company also reported a strong 16.9% yoy growth in circulation revenue to `77cr. Among the other segments, the companys radio business reported a robust advertising revenue growth of 22.1% yoy to `17cr. Strong operational performance: At the operating level, the EBITDA grew by 69.1% yoy to `133cr, aided by strong performance of mature editions, reduction in losses of emerging editions as well as cost rationalization measures such as improving ad edit ratio, and pagination efficiency, among others. Mature editions reported a 573bp yoy margin expansion to 36%. Losses in emerging editions stood at `5.8cr in 1QFY2014 compared to `12.1cr in 1QFY2013. Consequently, the OPM expanded by 873bp yoy to 29.6% and net profit grew by 74.1% yoy to `76cr. Akola edition launched, Amravati edition in August: DBCL has launched an Akola edition and is expected to launch an Amravati edition in August. The Management is bullish on the advertising market (especially local advertising) in Maharashtra. Therefore, it is also considering more launches in other tier-2 cities such as Nanded and Latur. Outlook and valuation: At the current market price, DBCL is trading at 14.4x FY2015E consolidated EPS of `17.2. We maintain our Buy view on the stock with a revised target price of `302, based on 17.5x FY2015E EPS, benchmarking it to our print media sector valuations (which are at ~15% premium to our Sensex target valuation multiple). The downside risks to our estimates include 1) sharp rise in newsprint prices in INR terms, and 2) higher-than-expected losses/increase in the breakeven period of the new launches.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 75.0 5.3 14.8 4.9

Abs. (%) Sensex DBCL

3m 7.5 12.6

1yr 17.7 27.8

3yr 12.1 6.1

Key financials (Consolidated)

Y/E March (` cr) Net sales % chg Net profit % chg EBITDA margin (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) FY2012 1,451 15.2 202 (21.8) 23.2 11.0 22.5 4.9 23.0 24.7 3.1 13.2 FY2013 1,592 9.7 218 7.9 23.6 11.9 20.8 4.4 22.3 25.4 2.8 11.9 FY2014E 1,783 12.0 267 22.4 25.2 14.5 17.0 3.8 23.9 28.3 2.4 9.7 FY2015E 1,968 10.4 316 18.5 26.8 17.2 14.4 3.2 24.2 29.7 2.2 8.1

Amit Patil 022-39357800 Ext: 6839 [email protected]

Source: Company, Angel Research

Please refer to important disclosures at the end of this report

DB Corp | 1QFY2014 Result Update

Exhibit 1: Quarterly Performance (Consolidated)

Y/E March (` cr) Net Sales Consumption of RM (% of Sales) Operating Expense (% of Sales) Staff Costs (% of Sales) Total Expenditure Operating Profit OPM (%) Interest Depreciation Other Income PBT (% of Sales) Provision for Taxation (% of PBT) Minority Interest Recurring PAT PATM Exceptional items Reported PAT Equity shares (cr) FDEPS (`)
Source: Company, Angel Research

1QFY14 449 142 31.6 100 22.3 74 16.6 317 133 29.6 2 16 5 119 26.5 43 36.1 0 76 17 0 76 18.3 4.2

1QFY13 377 133 35.3 97 25.8 68 18.1 298 79 20.8 4 14 5 66 17.5 22 33.7 0 44 12 0 44 18.3 2.4

% yoy 19.2 6.7 3.1 9.1 6.1 69.1 (33.3) 16.7 (1.2) 80.8 93.7

4QFY13 398 134 33.6 101 25.4 69 17.4 304 94 23.6 2 15 9 86 21.6 31 35.7 0

% qoq 12.9 6.3 (1.2) 7.5 4.1 41.4 14.8 4.4 (50.9) 38.7 40.3

FY2013 1,592 545 34.2 392 24.6 280 17.6 1,216 376 23.6 8 58 21 331 20.8 113 34.2 0

FY2012 1,451 508 35.0 364 25.1 243 16.7 1,115 336 23.2 9 51 24 301 20.7 98 32.7 (0) 202 14 202 18.3 11.0

% chg 9.7 7.2 7.7 15.1 9.1 11.8

14.8 (11.3) 10.3 15.1

74.1

55 14 0

37.8

218 14 0

8.0

74.1 74.1

55 18.3 3.0

37.7 37.8

218 18.3 11.9

8.0 8.0

July 18, 2014

DB Corp | 1QFY2014 Result Update

Top-line driven by robust advertising growth

For 1QFY2014, DBCL posted a robust 19.2% yoy growth in its top-line to `449cr. Advertising revenue grew by 20.4% yoy to `325cr, primarily driven by higher yields. Sectors such as lifestyle, education, automobile, FMCG and real-estate have contributed to the strong growth in advertising revenues. National advertising which has been subdued in the last few quarters has also picked up. The upcoming state elections in Madhya Pradesh, Rajasthan and Chhattisgarh are further expected to boost government advertising, which may raise the overall share of national advertising. Among other segments, the companys radio business reported a robust advertising revenue growth of 22.1% yoy to `17cr.

Exhibit 2: Top-line beats estimates, driven by strong ad growth

500 450 400 350 300
(` cr)

11.2 18.0 13.4 16.6 11.3 6.9 7.8

12.7

19.2

25.0 20.0 15.0 10.0 5.0 (%)

250 200 150

352 351 395 353 377 378 439 398 4Q13

50 -

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

Top line (LHS)

yoy growth (RHS)

Source: Company, Angel Research

Circulation revenue grew by robust 16.9% yoy

The company reported strong growth of 16.9% yoy in circulation revenue to `77cr (driven by both cover price hike as well as increase in circulation). In spite of cover price hike, its the lowest among its peers at `2.8.

Exhibit 3: Strong growth in advertising revenue

350 300 250 14.9 16.6 6.8 (0.2) 5.4 2.8 10.9 20.4 13.1 25.0 20.0 15.0

Exhibit 4: Price hike inches up circulation revenue

90 80 70 60 50 40 30 20 10 5.8 13.0 17.0 16.1 15.5 16.1 18.2 15.7 16.9 20.0 18.0 16.0 14.0 12.0 8.0 6.0 4.0

( ` cr)

( ` cr)

150 100

5.0

271

275

287

263

270

283

318

298

57

60

63

62

66

70

73

73

77

50 -

325

(5.0)

(%)

10.0

2.0 -

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

Advertising revenue (LHS)

yoy growth (RHS)

Circulation revenue (LHS)

yoy growth (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

July 18, 2014

1Q14

(%)

200

1Q14

449

100

10.0

DB Corp | 1QFY2014 Result Update

Strong operational performance

At the operating level, the EBITDA grew by 69.1% yoy to `133cr, aided by strong performance of mature editions, reduction in losses of emerging editions as well as cost rationalization measures such as improving ad edit ratio, and pagination efficiency, among others. Mature editions reported a 573bp yoy margin expansion to 36%. Losses in emerging editions stood at `5.8cr in 1QFY2014 compared to `12.1cr in 1QFY2013. Consequently, the OPM expanded by 873bp yoy to 29.6% and net profit grew by 74.1% yoy to `76cr.

Exhibit 5: Strong margin expansion in mature editions

160 140 120 100 33.7 29.9 30.3 29.6 33.2 36 31 40.0 35.0 30.0 25.0

Exhibit 6: Reduction in losses of emerging editions

(17) (5) (11.4) (15.4) (16.0) (10) (23) (17) (20) (12) (10) (6) (6) (6) (10.0) (20.0) (30.0) (50.0) (60.0) (79.0) (76.5) (43.9) (57.2) (70.0) (80.0) (90.0) (40.0)

( ` cr)

(%)

60

15.0

(15) (20) (25)

(27.4)

108.5

40

10.0

114

123

92

96

93

20

141

5.0 -

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

EBITDA

OPM

1Q14

EBITDA

OPM

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 7: Consolidated OPM expands 872bp yoy

80.0 70.0 60.0 50.0 66.4 64.5 65.8 63.2 64.7 64.8 67.0 66.4 68.4

Exhibit 8: Adjusted PAT grew by 74.1%

80 70 60 50 17.3 11.5 14.0 12.9 12.8 11.6 16.1 13.9 13.9 20.0 18.0 16.0 14.0 12.0 8.0 6.0 4.0 60 40 56 45 44 49 71 55 76 2.0 -

( ` cr)

(%)

40.0 30.0 20.0 10.0 -

28.1 19.8

24.1

20.6

20.8

22.8

27.2

23.6

29.6

30 20 10 -

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

Gross Margin

OPM

Adjusted PAT (LHS)

NPM (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Akola edition launched, Amravati edition in August

DBCL has launched an Akola edition and is expected to launch an Amravati edition in August. The Management is bullish on the advertising market (especially local advertising) in Maharashtra. Therefore, they are also considering more launches in other tier-2 cities such as Nanded and Latur.

July 18, 2014

1Q14

(%)

40

1Q14

10.0

(%)

80

20.0

( ` cr)

(21.9)

DB Corp | 1QFY2014 Result Update

Investment rationale
Well-planned aggression in business edges DBCL over peers: DBCL, though a dominant No. 2 player in the overall regional print space (trailing behind Jagran Prakashan), enjoys a premium valuation to its peers - Jagran Prakashan (flagship daily Dainik Jagran) and Hindustan Media Ventures (flagship daily Hindustan). We attribute the reason for this trend to DBCLs business model (which is primarily driven by ad revenue) and well thought-out launches in new markets. We believe the companys continuous endeavor to diversify its print business coupled with aggressive expansion into new markets (urban towns beyond metros) backed by exhaustive market research and focus on achieving leadership are the key factors differentiating the company from its peers. The company has been successful in executing its expansion plans with launches in Maharashtra and Jharkhand.

Outlook and valuation

At the current market price, DBCL is trading at 14.4x FY2015E consolidated EPS of `17.2. We maintain our Buy view on the stock with a revised target price of `302, based on 17.5x FY2015E EPS, benchmarking it to our print media sector valuations (which are at ~15% premium to our Sensex target valuation multiple). The downside risks to our estimates include 1) sharp rise in newsprint prices in INR terms, and 2) higher-than-expected losses/increase in the breakeven period of the new launches.

July 18, 2014

DB Corp | 1QFY2014 Result Update

Exhibit 9: Peer valuation

Company HT Media Jagran DB Corp Reco Buy Buy Buy Mcap (` cr) 2207 2712 4541 CMP (`) 94 86 248 TP (`) 117 119 302 Upside (%) 25 39 22 P/E (x) FY14E 11.4 13.3 17.0 FY15E 10.3 11.0 14.4 EV/Sales (x) FY14E 0.6 1.7 2.4 FY15E 0.5 1.5 2.1 ROE(%) FY14E 11.5 21.0 23.9 FY15E 11.4 23.1 24.2 CAGR # Sales 7.8 9.4 11.2 PAT 13.0 20.4

Source: Company, Angel Research Note:# denotes CAGR for FY2013-15

Exhibit 10: Angel vs consensus estimates

Top-line (` cr) Angel estimates Consensus Diff (%)
Source: Company, Angel Research

FY2014E 1,783 1,786 (0.2)

FY2015E 1,968 1,990 (1.1)

EPS (`) Angel estimates Consensus Diff (%)

FY2014E 14.5 14.4 1.0

FY2015E 17.2 17.1 0.8

Exhibit 11: Return of DB Corp vs Sensex

250% 230% 210% 190% 170% 150% 130% 110% 90% 70% 50% 30% 10% -10% Sensex DBCorp

Exhibit 12: One-year forward P/E band

350 300
10x 14x 18x 22x

Share Price (`)

Feb-11 Feb-12 Dec-10 Dec-11 Aug-11 Aug-10 Aug-12 Dec-12 Feb-13 Jun-10 Jun-11 Apr-10 Apr-11 Apr-12 Jun-12 Oct-10 Oct-11 Oct-12 Apr-13

250 200 150 100 50 0

Jun-11

Jun-10

Jun-12

Aug-10

Aug-12

Aug-11

Apr-10

Apr-11

Apr-12

Feb-11

Feb-12

Oct-10

Oct-11

Oct-12

Dec-10

Source: Company, Angel Research

Source: Company, Angel Research

Company Background
DB Corp is one of the largest print media companies in India that publishes 8 newspapers with 65 editions, and 199 sub editions in 4 multiple languages across 13 states in India. The companys flagship newspaper Dainik Bhaskar, Divya Bhaskar and Saurashtra Samachar have a combined average daily readership of ~19 million, making them one of the most widely read newspaper groups in India with presence in Madhya Pradesh, Chhattisgarh, Rajasthan, Haryana, Punjab, Chandigarh, Himachal Pradesh, Uttrakhand, Delhi, Gujarat, Maharashtra and Jammu. The companys other noteworthy newspaper brands are Dainik Divya Marathi, Business Bhaskar, DB Gold, DB Star and DNA on a franchise basis.

July 18, 2014

Dec-11

Dec-12

Feb-13

Apr-13

DB Corp | 1QFY2014 Result Update

Profit and loss Statement (Consolidated)

Y/E March (` cr) Gross sales Less: Excise duty Net Sales Total operating income % chg Total Expenditure Cost of Materials SG&A Expenses Personnel Others EBITDA % chg (% of Net Sales) Depreciation & Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Share in profit of Associates Recurring PBT % chg Prior Period & Extra Exp/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earn. of assoc. Less: Minority interest (MI) PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg
previous year numbers

FY2010 FY2011 FY2012 FY2013 FY2014E FY2015E 1,058 1,058 1,058 10.4 720 328 249 132 12 338 133.8 31.9 38 300 159.7 28.4 25 5 1.9 281 258.9 0 280 106 37.6 175 (8) 183 183 283.5 17.3 10.1 10.0 283.9 1,260 1,260 1,260 19.1 862 383 279 185 16 398 17.7 31.5 43 354 18.1 28.1 15 19 5.4 359 27.9 2 357 98 27.4 259 0.3 259 260 42.2 20.6 14.1 14.1 41.4 1,451 1,451 1,451 15.2 1,115 508 350 243 15 336 (15.4) 23.2 51 286 (19.3) 19.7 9 24 8.0 301 (16.2) 301 98 32.7 202 0 202 202 (22.3) 13.9 11.0 11.0 (21.8) 1,592 1,592 1,592 9.7 1,216 545 380 280 12 376 11.7 23.6 58 318 11.1 19.9 8 21 6.4 331 10.1 331 113 34.2 218 (0) 218 218 7.9 13.7 11.9 11.9 7.9 1,783 1,783 1,783 12.0 1,333 592 415 308 17 450 19.8 25.2 64 386 21.6 21.7 8 20 4.9 398 20.3 398 131 33.0 267 267 267 22.4 15.0 14.5 14.5 22.4 1,968 1,968 1,968 10.4 1,442 625 459 341 17 527 17.0 26.8 70 456 18.1 23.2 6 22 4.6 472 18.5 472 156 33.0 316 316 316 18.5 16.1 17.2 17.2 18.5

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

July 18, 2014

DB Corp | 1QFY2014 Result Update

Balance Sheet (Consolidated)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Share Capital suspense a/c Reserves& Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Other long term liablities Long term provisions Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Long term loans and adv. Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets
previous year numbers

FY2010 FY2011 FY2012 182 1 466 649 4 321 61 183 3 643 829 0 172 69 26 3 1,035 660 112 547 61 39 21 561 193 103 266 207 354 13 1,035 1,100 783 149 634 41 33 16 63 557 173 71 313 255 302 10 1,100 183 5 739 927 2 180 75 30 3 1,216 906 191 715 45 33 46 87 610 188 54 367 329 280 9 1,216

FY2013 183 5 840 1,029 1 137 83 33 3 1,287 1,001 238 763 7 68 81 85 622 128 56 438 346 276 6 1,287

FY2014E 183 5 1,016 1,204 1 127 83 33 3 1,452 1,100 302 799 11 68 106 99 726 212 79 435 367 359 9 1,452

FY2015E 183 5 1,225 1,413 1 97 83 33 3 1,631 1,215 372 843 12 68 128 99 859 281 98 480 378 481 1,631

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

July 18, 2014

DB Corp | 1QFY2014 Result Update

Cash flow (Consolidated)

Y/E March (` cr) Profit before tax Depreciation Change in Working Cap. Interest / Dividend (Net) Direct taxes paid Others Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Interest / Dividend (Net) Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances
previous year numbers

FY2010 FY2011 FY2012 281 38 (14) 25 101 2 229 (38) 3 (34) 251 (242) 42 13 (48) 147 45 193 359 43 (24) 15 98 0 295 (103) 4.22 (99) 2 (149) 69 1 (216) (20) 193 173 301 51 (21) 9 98 26 268 (127) (29.7) (157) 0.55 8 107 (2) (96) 16 173 188

FY2013 331 58 (25) 8 113 (38) 221 (92) (34.7) (127) 1.36 (43) 118 (4) (155) (61) 188 128

FY2014E 398 64 (13) 8 131 0 326 (103) (25.0) (128) (10) 107 (4) (113) 84 128 212

FY2015E 472 70 (54) 6 156 0 338 (116) (22.0) (138) (30) 107 (6) (132) 69 212 281

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

July 18, 2014

DB Corp | 1QFY2014 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 Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) 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 (EBIT / Int.)
previous year numbers

FY2010 24.8 20.4 6.9 0.8 4.4 13.8 4.5 10.1 10.0 12.2 2.0 35.7 28.4 0.6 1.3 22.4 0.0 1.0 45.7 31.4 35.6 40.3 1.6 25 67 59 56 0.2 0.3 12.2

FY2011 FY2012 17.6 15.0 5.5 1.3 3.6 11.3 4.1 14.1 14.1 16.5 3.2 44.7 28.1 0.7 1.4 29.1 0.0 0.1 31.2 33.2 38.3 35.0 1.6 21 70 22 55 (0.0) (0.0) 23.7 22.5 18.0 4.9 2.0 3.1 13.2 3.7 11.0 11.0 13.8 5.0 50.1 19.7 0.7 1.5 19.7 0.0 (0.0) 19.0 24.7 27.9 23.0 1.6 30 62 27 44 (0.1) (0.2) 31.0

FY2013 FY2014E 20.8 16.5 4.4 2.2 2.8 11.9 3.5 11.9 11.9 15.1 5.5 55.8 19.9 0.7 1.5 19.2 0.0 (0.1) 18.0 25.4 27.5 22.3 1.6 30 63 22 53 (0.1) (0.2) 40.2 17.0 13.7 3.8 2.0 2.4 9.7 3.0 14.5 14.5 18.0 5.0 65.2 21.7 0.7 1.5 21.6 0.0 (0.1) 19.2 28.3 31.2 23.9 1.6 26 63 25 50 (0.2) (0.4) 50.6

FY2015E 14.4 11.7 3.2 2.0 2.2 8.1 2.6 17.2 17.2 21.1 5.0 77.1 23.2 0.7 1.5 23.7 0.0 (0.2) 19.2 29.7 33.9 24.2 1.6 26 63 24 55 (0.2) (0.6) 78.1

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

July 18, 2014

10

DB Corp | 1QFY2014 Result Update

Research Team Tel: 022 - 39357800

E-mail: [email protected]

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 Pvt. 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 Pvt. 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 Pvt. 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 Pvt. 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 Pvt. 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 Pvt. 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 Pvt. 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

DB Corp. 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%)

July 18, 2014

11