1QFY2011 Result Update | Base Metals

August 03, 2010

Hindalco
Performance highlights

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (Rs cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (Rs) BSE Sensex Nifty Reuters Code Bloomberg Code Base Metals 31,652 1.9 188/99 2224364 1 18,115 5,440 HALC.BO HNDL@IN

Rs165 Rs204
12 months

Particulars (Rs cr) Net sales EBITDA % margin Net profit

1QFY2011 1QFY2010 % chg (yoy) 4QFY2010 % chg (qoq) 5,146 832 16.2 534 3,871 758 19.6 481 32.9 9.9 (340bp) 11.2 5,358 835 15.6 664 (4.0) (0.3) 59bp (19.5)

Source: Company, Angel Research

Hindalcos standalone net revenue came in at Rs5,146cr for 1QFY2011, in line with our estimates of Rs4,986cr. Net profit at Rs534cr was also in line with our estimate of Rs556cr. Strong performance: Net revenue grew by 32.9% yoy to Rs5,146cr, driven by higher benchmark prices, increased aluminium volumes, better product mix and higher by-product realisations in the copper business. However, copper production was lower on account of the planned smelter shutdown for 24 days in April 2010. Further, production at Hirakud is expected to be lower by 20,000 tonnes as operations have been affected by heavy rains. Operations at Hirakud are expected to restart by the end of August 2010. EBITDA margin decreased by 340bp yoy to 16.2% (1QFY2010 included an exceptional gain of ~Rs150cr) and EBITDA increased by 9.9% yoy to Rs832cr. Net profit grew by 11.2% to Rs534cr as interest expense and other income declined by 13.0% yoy and 8.5% yoy to Rs59cr and Rs69cr, respectively. Outlook and valuation: At the CMP of Rs165, the stock is trading at 6.1x FY2011E and 5.8x FY2012E EV/EBITDA. We believe Hindalco is well placed to benefit from a) its aluminium expansion plans (capacity increasing by nearly twothree folds in the next two-four years), b) low production cost at its new capacities and c) the expected turnaround at Novelis. We maintain our Buy recommendation on the stock with a revised SOTP Target Price of Rs204 (Rs208).

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 32.1 21.2 37.9 8.8

Abs. (%) Sensex Hindalco

3m 4.2

1yr 13.8

3yr 19.7 12.2

(4.4) 52.9

Key financials (Consolidated)

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

FY2009 65,415 9.6 485 (79.7) 2.9 4.6 58.0 1.8 2.9 0.8 16.8

FY2010E 60,563 (7.4) 3,925 708.9 20.5 16.1 8.1 1.4 20.6 13.4 0.8 5.0

FY2011E 63,659 5.1 3,626 (7.6) 18.9 13.0 8.7 1.2 15.1 10.3 0.8 6.1

FY2012E 67,521 6.1 3,891 7.3 20.3 13.8 8.1 1.1 14.2 10.0 0.8 5.8 Paresh Jain
Tel: 022-40403800 Ext: 348 pareshn.jain@angeltrade.com

Pooja Jain
Tel: 022-40403800 Ext: 311 pooja.j@angeltrade.com

Please refer to important disclosures at the end of this report

Hindalco | 1QFY2011 Result Update

Exhibit 1: 1QFY2011 performance (Standalone)

( Rs cr) Net sales Raw material % of net sales Power and fuel % of net sales Staff cost % of net sales Other expenses % of net sales Total expenditure % of net sales Operating Income EBIDTA % of net sales Interest Depreciation Other income Exceptional Items PBT % of net sales Provision for tax % of PBT PAT % of net sales Diluted EPS (Rs) 1QFY11 5,146 3,121 60.7 510 9.9 228 4.4 487 9.5 4,346 84.5 33 832 16.2 59 169 69 0 673 13.1 139 20.6 534 10.4 2.8 1QFY10 3,871 2,512 64.9 421 10.9 207 5.3 2 0.0 3,142 81.2 29 758 19.6 68 165 75 0 600 15.5 119 19.8 481 12.4 2.8 (1.4) 11.2 16.4 12.2 (13.0) 2.3 (8.5) 14.5 9.9 38.3 27,555.1 10.1 21.1 yoy% 32.9 24.3 FY10 19,408 12,542 64.6 1,938 10.0 878 4.5 1,228 6.3 16,586 85.5 128 2,950 15.2 25 667 260 0 2,265 11.7 349 15.4 1,916 9.9 10.6 FY09 18,053 11,060 61.3 2,232 12.4 668 3.7 1,225 6.8 15,184 84.1 167 3,036 16.8 31 645 637 0 2,690 14.9 460 17.1 2,230 12.4 14.8 (28.5) (14.1) (24.2) (15.8) (17.5) 3.4 (59.2) (23.1) (2.8) 9.2 0.3 31.5 (13.2) yoy% 7.5 13.4

Source: Company, Angel Research

Exhibit 2: 1QFY2011 - Actual vs. Angel estimates

(Rs cr) Net sales EBITDA EBITDA margin (%) PBT PAT
Source: Company, Angel Research

Actual 5,146 832 16.2 673 534

Estimate Variation (%) 4,986 863 17.3 695 556 3.2 (3.5) (112bp) (3.2) (3.9)

August 03, 2010

Hindalco | 1QFY2011 Result Update

Key result highlights

Hindalcos net revenue grew by 32.9% yoy to Rs5,146cr, driven by higher benchmark prices, increased aluminium volumes, better product mix and higher by-product realisations in the copper business. The companys EBITDA margin decreased by 340bp yoy to 16.2% (1QFY2010 included an exceptional gain of ~Rs150cr) and EBITDA increased by 9.9% yoy to Rs832cr. Net profit increased by 11.2% to Rs534cr as interest expense and other income declined by 13.0% yoy and 8.5% yoy to Rs59cr and Rs69cr, respectively.

Segmental performance
Revenue from the copper division increased by 33.7% yoy to Rs3,314cr, whereas that from the aluminium division increased by 31.4% yoy to Rs1,867cr. Cathode production declined by 4.4% yoy to 76,309 tonnes, while production of CC rods increased by 12.3% yoy to 40,708 tonnes. Copper production was lower on account of the planned smelter shutdown for 24 days in April 2010. Further, production at Hirakud is expected to be lower by 20,000 tonnes as operations have been affected by heavy rains. Operations at Hirakud are expected to restart by the end of August 2010.

Exhibit 3: Quarterly copper production trend

(tonnes) Copper cathodes CC rods 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 yoy % qoq % 79,782 36,241 89,692 37,490 89,152 32,969 74,734 36,870 76,309 40,708 (4.4) 12.3 2.1 10.4

Source: Company, Angel Research

During the quarter, alumina production grew by 9.5% yoy to 341,419 tonnes and metal production increased by 3.4% yoy to 140,061 tonnes.

Exhibit 4: Quarterly aluminium production trend

(tonnes) Alumina Aluminium metal Wire rods Flat rolled products/foil Extrusions 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 yoy % qoq % 311,917 311,706 339,899 343,801 341,419 135,439 139,894 142,048 138,023 140,061 22,108 52,904 8,812 23,255 57,787 9,815 23,363 55,030 10,531 23,177 47,781 9,751 23,326 51,373 9,617 9.5 3.4 5.5 (2.9) 9.1 (0.7) 1.5 0.6 7.5 (1.4)

Source: Company, Angel Research

August 03, 2010

Hindalco | 1QFY2011 Result Update

EBIT affected by lower TC/RC and higher energy cost

The copper divisions EBIT margin declined from 6.3% in 1QFY2010 to 3.7% in 1QFY2011. The positive impact of higher by-product realisations was negated by lower TC/RC margin and higher energy cost. Consequently, copper EBIT declined by 20.5% yoy to Rs124cr.

Exhibit 5: TC/RC margin at low levels

10 8 6

(c/lb)

4 2 0 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11

Source: Company, Angel Research

The aluminium divisions EBIT margin fell to 29.6% in 1QFY2011from 32.0% in 1QFY2010 on account of higher energy cost and rupee appreciation. Thus, aluminium EBIT grew by 21.3% yoy to Rs552cr.

Exhibit 6: Segmental performance

(Rs cr) Aluminium Copper Gross revenue Less: Inter-segment revenue Net sales Aluminium Copper EBIT EBIT margin (%) Aluminium Copper 32.0 6.3 15.7 6.6 23.2 4.6 30.0 3.8 29.6 3.7 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 yoy % qoq % 1,421 2,480 3,901 (1) 3,899 455 156 612 1,650 3,269 4,919 (2) 4,917 259 217 476 1,885 3,432 5,317 (2) 5,315 438 159 598 2,045 3,361 5,406 (2) 5,404 614 127 742 1,867 3,314 5,181 (3) 5,178 552 676 31.4 33.7 32.8 32.8 (8.7) (1.4) (4.2) (4.2) (2.5) (8.8)

21.3 (10.1) 10.6

124 (20.5)

Source: Company, Angel Research

August 03, 2010

Hindalco | 1QFY2011 Result Update

Investment rationale
Aluminium capacity to increase two-three folds in the next 24years
Hindalco is increasing its aluminium capacity by two-three folds in the next wo-four years. The first commissioning is expected at Hirakud in 2QFY2011, where capacity is being increased to 161ktpa in Phase-1 and to 213ktpa in Phase2 by 4QFY2012E. Moreover, capacities at Mahan Aluminium and Aditya Aluminium are expected to come on stream by FY2012E. Consequently, we expect sales volume to grow at a 26.6% CAGR over FY201013E. Further, the companys Jharkhand Aluminium project is expected to be commissioned in 1QFY2014. On the alumina front, with the commissioning of the Utkal refinery in FY2012E, we expect alumina sales volume to grow at a 42.9% CAGR over FY201012E. Moreover, these new capacities are coming at the lower end of the cost curve, which is likely to further benefit the company in terms of cost reduction.

Exhibit 7: Expansion plans

Project Smelter Hirakud Phase I (115kt-161kt) Phase II (161kt-213kt) Phase III (213kt-316kt) Mahan Aluminim Aditya Aluminium Jharkhand Aluminium Refinery Utkal Alumina Aditya Alumina Belgaum Special Alumina Project
Source: Company, Angel Research

Timeline 2QFY11E 4QFY12E 2QFY12E 3QFY12E 1QFY14E 2QFY12E 1QFY14E -

Turnaround at Novelis
With the renewal of its long-term contracts, we believe the risk in the companys earnings has eased out as there is a condition of price revision in the new contracts. Further, Novelis is expanding its rolling capacity in Brazil at a capex of US $300mn.

August 03, 2010

Hindalco | 1QFY2011 Result Update

Outlook and valuation

At the CMP of Rs165, the stock is trading at 6.1x FY2011E and 5.8x FY2012E EV/EBITDA. We believe Hindalco is well placed to benefit from a) its aluminium expansion plans (capacity increasing by nearly two-three folds in the next two-four years), b) low production cost at its new capacities and c) the expected turnaround at Novelis. We maintain our Buy recommendation on the stock with a revised SOTP Target Price of Rs204 (Rs208).

Exhibit 8: SOTP valuation

FY2012 EV/ EBITDA (Rs cr) Hindalco (Standalone) Novelis Total EV Less: Net debt (FY11E) Value of investments @25% discount Value per share
Source: Angel Research

Multiple 6.5 5.5

EV (Rs cr) 28,471 27,196 55,667

Stake (%) 100 100

Attributable EV 28,471 27,196 55,667 18,896 2,280

Value (Rs/share) 149 142 291 99 12 204

4,380 4,945

Exhibit 9: Key assumptions

FY11 Sales volume (tonnes) Aluminium Copper Alumina LME prices (US $/tonne) Aluminium Copper Alumina
Source: Company, Angel Research

FY12 663,492 370,626 316,650 2,200 6,500 330

517,313 370,684 280,000 2,100 6,500 315

Exhibit 10: Change in estimates

(Rs cr) Net sales EBITDA EBITDA margin (%) PBT Net income Net margin (%)
Source: Company, Angel Research

Earlier estimates FY11E 63,898 8,333 13.0 5,282 3,664 5.7 FY12E 67,521 9,325 13.8 5,610 3,890 5.8

Revised estimates FY11E 63,659 8,284 13.0 5,233 3,626 5.7 FY12E 67,521 9,325 13.8 5,612 3,891 5.8

Upgrade/(downgrade) (%) FY11E (0.4) (0.6) (3bp) (0.9) (1.0) (4bp) FY12E 0.0 0.0 0bp 0.0 0.0 0bp

Exhibit 11: EPS - Angel forecast vs. consensus

Year (%) FY11E FY12E
Source: Bloomberg, Angel Research

Angel forecast 18.9 20.3

Bloomberg consensus 14.5 17.6

Variation (%) 30.6 15.3

August 03, 2010

Hindalco | 1QFY2011 Result Update

Exhibit 12: EV/EBITDA band

160,000 140,000 120,000 100,000 14x 11x 8x 5x 2x Apr-07 Apr-08 Apr-09 Apr-10

(Rs cr)

80,000 60,000 40,000 20,000 0 Apr-06

Source: Bloomberg, Angel Research

Exhibit 13: P/E band

1,000 900 800 700 600 35x 25x 15x 5x Apr-07 Apr-08 Apr-09 Apr-10

(Rs)

500 400 300 200 100 0 Apr-06

Source: Bloomberg, Angel Research

Exhibit 14: P/BV band

300 250 200 1.7x

(Rs)

150 100 50 0 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10

1.2x 0.7x 0.2x

Source: Bloomberg, Angel Research

August 03, 2010

Hindalco | 1QFY2011 Result Update

Exhibit 15: Recommendation summary

Companies CMP (Rs) 201 547 1,128 370 268 165 425 179 Target Price (Rs) 697 1,344 244 204 316 228 1,227 Neutral Buy Buy Neutral Buy Sell Buy Buy Reco. Mcap (Rs cr) 83,166 48,494 28,817 30,739 31,652 27,370 59,976 45,488 Upside (%) 27.4 19.2 (8.9) 25.8 (25.6) 27.7 14.0 P/E (x) FY11E 13.3 9.0 14.8 7.3 16.0 8.7 26.9 12.5 11.2 FY12E 11.7 9.6 11.3 7.6 12.5 8.1 22.7 9.1 8.6 P/BV (x) 2.2 1.5 1.5 2.6 5.4 1.2 2.5 1.4 2.1 1.9 1.3 1.3 1.9 4.1 1.1 2.3 1.2 1.7 EV/EBITDA (x) 8.7 6.8 7.0 4.0 10.0 6.1 15.5 6.7 6.4 7.6 6.2 5.5 3.2 7.3 5.8 12.2 4.6 4.1 RoE (%) 17.9 17.9 13.9 45.9 39.3 15.1 9.7 11.6 20.4 17.6 14.7 12.4 31.5 37.1 14.2 10.7 14.2 21.6 RoCE (%) 16.3 11.8 12.5 43.7 52.2 10.3 10.7 11.1 20.7 16.9 11.7 12.6 34.7 49.2 10.0 12.5 14.1 22.3 FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E

SAIL
Tata Steel

JSW Steel Sesa Goa NMDC Hindalco Nalco Sterlite

Reduce 106,135

Hindustan Zinc 1,077

Source: Company, Angel Research

August 03, 2010

Hindalco | 1QFY2011 Result Update

Profit & Loss Statement (Consolidated)

Y/E March (Rs cr) Net sales Other operating income Total operating income % chg Total expenditure EBITDA % chg (% of Net sales) Depreciation EBIT % chg (% of Net sales) Interest charges Other income (% of PBT) Share in profit of asso. Recurring PBT % chg Extra. Inc/(Expense) PBT (reported) Tax (% of PBT) PAT (reported) Add: Earnings of asso. Less: Minority interest Extra. Expense/(Inc.) PAT after MI (reported) ADJ. PAT % chg (% of Net sales) Basic EPS (Rs) Fully Diluted EPS (Rs) % chg FY2007 FY2008 FY2009 19,059 59,696 65,415 257 60.5 4,431 55.7 23.2 865 3,566 74.0 18.7 313 409 11.2 3,662 80.5 3,662 958 26.2 2,703 (0.5) 2,686 2,686 70.3 13.9 26.7 25.8 60.9 317 210.7 6,635 49.8 11.1 2,457 4,179 17.2 7.0 1,849 656 2,985 2,985 362 12.1 2,624 (15.9) 2,387 2,387 (11.1) 4.0 20.5 19.5 (24.4) 211 9.4 2,977 (55.1) 4.6 3,038 (60) (0.1) 1,232 688 (605) (605) (954) 349 (35.3) 171.8 485 485 (79.7) 0.7 3.2 2.9 (85.3) 19,316 60,013 65,625 14,886 53,378 62,648 FY2010 FY2011E FY2012E 60,563 160 60,722 (7.5) 50,976 9,746 227.3 16.1 2,784 6,962 11.5 1,104 323 5.2 6,181 6,181 1,829 29.6 4,352 (2.7) (423.7) 3,925 3,925 708.9 6.5 21.7 20.5 618.8 63,659 110 63,769 5.0 55,484 8,284 (15.0) 13.0 2,294 5,991 (14.0) 9.4 1,157 400 7.6 5,233 (15.3) 5,233 1,495 28.6 3,738 (112.5) 3,626 3,626 (7.6) 5.7 18.9 18.9 (7.6) 67,521 110 67,631 6.1 58,306 9,325 12.6 13.8 2,789 6,536 9.1 9.7 1,324 400 7.1 5,612 7.2 5,612 1,608 28.7 4,003 (112.5) 3,891 3,891 7.3 5.8 20.3 20.3 7.3

22.0 (113.7)

(18.5) (120.3) (1,121.7)

(16.1) (220.6)

August 03, 2010

Hindalco | 1QFY2011 Result Update

Balance Sheet (Consolidated)

Y/E March (Rs cr) SOURCES OF FUNDS Equity share capital Reserves & surplus Shareholders funds Share warrants Minority interest Total loans Deferred tax liability Total liabilities Gross block Less: Acc. depreciation Net Block Capital work-inprogress Goodwill Investments Current assets Cash Loans & advances Other Current liabilities Net current assets Mis. exp. not written off Total assets APPLICATION OF FUNDS 14,111 5,035 9,077 1,917 263 7,875 8,668 1,034 1,151 6,483 4,401 4,267 4.2 23,403 34,187 7,373 26,814 2,457 8,833 13,892 21,474 1,717 1,859 17,899 17,204 4,271 1.0 56,267 38,332 10,807 27,525 2,949 4,291 10,431 19,271 2,192 1,827 15,252 16,260 3,011 0.4 48,207 40,332 13,590 26,741 5,449 4,291 10,431 23,184 7,692 1,817 13,675 14,532 8,652 0.4 55,565 42,462 15,884 26,577 9,944 4,291 10,431 24,242 7,670 1,591 14,980 14,451 9,791 0.4 61,035 59,092 18,673 40,419 2,939 4,291 10,431 26,527 9,365 1,350 15,811 14,838 11,689 0.4 69,769 104 12,818 12,922 857 8,452 1,171 23,403 123 17,085 17,208 139 1,617 32,352 4,951 56,267 170 15,684 15,854 1,287 28,310 2,757 48,207 191 22,096 22,288 1,710 28,810 2,757 55,565 191 25,454 25,645 1,823 30,810 2,757 61,035 191 29,076 29,267 1,935 35,810 2,757 69,769 FY2007 FY2008 FY2009 FY2010E FY2011E FY2012E

August 03, 2010

10

Hindalco | 1QFY2011 Result Update

Cash flow statement

Y/E March (Rs cr) Profit before tax Depreciation Change in working capital Less: Other income Direct taxes paid Cash flow from operations (Inc.)/ Dec. in fixed assets (Inc.)/ Dec. in investments (Inc.)/ Dec. in loans and advances Other income Cash flow from investing Issue of equity Inc./(Dec.) in loans Dividend paid Others Cash flow from financing Inc./(Dec.) in cash Opening cash bal. Closing cash bal. FY2007 3,662 865 (535) 24 590 3,426 FY2008 FY2009 FY2010E 2,985 2,457 758 135 935 5,400 (605) 3,038 2,931 61 843 4,581 (2,890) 4,907 (910) 2,928 5,062 (9,195) 353 2,245 (6,731) 778 1,405 2,183 6,181 2,784 (141) 1,829 6,995 (4,500) (4,500) 2,777 500.0 269 2.7 3,006 5,501 2,192 7,692 FY2011E FY2012E 5,233 2,294 (1,161) 1,495 4,871 (6,625) (6,625) 2,000.0 269 1,731 (22) 7,692 7,670 5,612 2,789 (203) 1,608 6,589 (9,625) (9,625) 5,000.0 269 4,731 1,695 7,670 9,365

(2,191) (16,653) (4,620) (416) (2,150) (731)

(6,394) (18,072) 1,871 2,202 452 717 2,903 (65) 1,075 1,010 2,524 12,712 10 2,312 12,915 242 1,467 1,709

August 03, 2010

11

Hindalco | 1QFY2011 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 (Rs) 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 (Pre-tax) Angel RoIC (pre-tax) RoE Turnover ratios (x) Asset turnover (gross block) Inventory (days) Receivables (days) Payables (days) WC cycle (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest coverage 0.0 0.0 11.4 1.2 3.2 2.3 1.4 7.3 0.8 1.7 6.3 0.7 2.3 5.2 0.8 2.4 4.9 17.6 28.3 24.1 1.4 118 30 66 66 10.5 15.1 15.8 2.5 76 41 72 34 2.9 1.8 50 37 55 36 13.4 18.1 20.6 1.5 50 40 55 35 10.3 15.5 15.1 1.5 50 42 50 38 10.0 14.1 14.2 1.3 50 42 50 41 18.7 73.8 1.4 18.9 4.9 0.0 19.0 7.0 87.9 2.0 12.3 9.5 1.2 15.8 1.5 5.2 1.4 11.5 70.4 1.4 11.5 5.1 0.8 16.4 9.4 71.4 1.4 9.2 5.5 0.7 12.0 9.7 71.3 1.3 8.9 6.2 0.8 10.9 26.7 25.8 34.0 1.7 123.9 20.5 19.5 39.5 1.9 140.3 3.2 2.9 20.7 1.4 93.2 21.7 20.5 35.1 1.4 116.5 18.9 18.9 30.9 1.4 134.0 20.3 20.3 34.9 1.4 152.9 6.4 4.9 1.3 1.0 0.9 3.9 1.9 8.5 4.2 1.2 1.1 0.7 6.2 1.5 58.0 8.0 1.8 0.8 0.8 16.8 1.8 8.1 4.7 1.4 0.8 0.8 5.0 1.8 8.7 5.3 1.2 0.8 0.8 6.1 1.9 8.1 4.7 1.1 0.8 0.8 5.8 1.3 FY2007 FY2008 FY2009 FY2010E FY2011E FY2012E

August 03, 2010

12

Hindalco | 1QFY2011 Result Update

Research Team Tel: 022 - 4040 3800

E-mail: research@angeltrade.com

Website: www.angeltrade.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

Hindalco No No No No

Note: We have not considered any Exposure below Rs 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%)

August 03, 2010

13