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2QFY2012 Result Update | Infrastructure

October 28, 2011

Consolidated Construction Consortium


Performance Highlights
Y/E March (` cr) Net sales Operating profit Net profit 2QFY12 535.8 7.5 (18.7) 2QFY11 489.5 38.2 13.7 1QFY12 506.9 24.6 0.6 % chg (yoy) 9.5 (80.3) % chg (qoq) 5.7 (69.3) -

REDUCE
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Infrastructure 359 0.35 93/17 33,470 2 17,805 5,361 CCON.BO CCCL@IN

`19 `17
12 Months

Source: Company, Angel Research

For CCCL the run of dismal performances continue. Though the companys performance on the revenue front was higher than our expectations; however, it was shocking, to say the least, at the earnings front, due to a substantial dip in EBITDAM and higher than anticipated interest cost. We are revising our estimates further downwards for FY2012 and FY2013 and are also assigning lower target PE multiple (7x from earlier 8x) to factor in the poor performance during the quarter, persistent weakness in business environment and expected poor performance in second half of the fiscal. Hence, we downgrade the stock to Reduce from Neutral with a Target Price of `17. EBITDAM take a plunge + high interest cost Earnings in red: For 2QFY2012, CCCLs top line grew by 9.5% yoy to `535.8cr (`489.5cr), against our estimate of `465.0cr. On the EBITDAM front, the company posted abysmal margin of 1.4% (7.8%), registering a decline of 640bp yoy against our expectation of 261bp. On a sequential basis as well, CCCLs margin witnessed a 340bp decline. The decline in margin can be attributed to commodity price pressures and increased employee and labor costs. Therefore, on the bottom-line front, the company reported loss of `18.7cr in 2QFY2012 vs. profit of `13.7cr in 2QFY2011, against our expectation of `1.4cr profit, mainly on account of lower margin and higher interest cost (`17.2cr, a jump of 42.1%/11.3% yoy/qoq). Outlook and valuation: CCCL has been posting erratic numbers on the EBITDAM front and consequently has been performing poorly on the earnings front as well since the last few quarters. We have revised our numbers and PE multiple downwards owing to the reasons mentioned above. Our revised target price for CCCL is `17/share based on 7.0x on its FY2013E EPS of `2.4; implying a downside of ~11% from current levels hence, we downgrade the stocks rating to Reduce from Neutral.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 50.7 13.8 13.4 22.1

Abs. (%) Sensex CCCL

3m

1yr

3yr 97.7 (68.3)

(2.2) (10.7) (33.5) (75.7)

Key financials (Consolidated)


Y/E March (` cr) Net sales (incl op. income) % chg Adj. net profit % chg FDEPS (`) EBITDA margin (%) P/E (x) RoAE (%) RoACE (%) P/BV (x) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010 1,976 7.3 91.6 26.6 5.0 9.1 3.9 16.6 19.3 0.6 0.3 2.9

FY2011 2,199 11.3 46.9 (48.8) 2.5 7.0 7.7 7.7 13.2 0.6 0.3 4.6

FY2012E 2,362 7.4 (6.6) (0.4) 3.7 (1.1) 6.0 0.6 0.4 10.0

FY2013E 2,646 12.0 43.7 2.4 5.9 8.2 7.0 10.5 0.6 0.4 6.0

Shailesh Kanani
022-39357800 Ext: 6829 shailesh.kanani@angelbroking.com

Nitin Arora
022-39357800 Ext: 6842 nitin.arora@angelbroking.com

Please refer to important disclosures at the end of this report

CCCL | 2QFY2012 Result Update

Exhibit 1: Quarterly performance (Standalone)


Y/E March (` cr) Net sales Total expenditure Operating profit OPM (%) Interest Depreciation Non operating income Nonrecurring items Profit before tax Tax Net profit before JV share Share of pfts to JV partner Net profit after JV share PAT (%) Reported EPS
Source: Company, Angel Research

2QFY12 535.8 528.3 7.5 1.4 17.2 3.6 1.5 (11.8) 4.2 (16.0) 2.8 (18.7) (3.5) (1.0)

2QFY11 489.5 451.3 38.2 7.8 12.1 3.1 1.3 0.7 25.0 8.5 16.5 2.7 13.7 2.8 0.7

1QFY12 506.9 482.3 24.6 4.8 15.5 3.2 1.2 7.0 4.1 2.9 2.4 0.6 0.1 0.0

% Chg (yoy) 9.5 17.1 (80.3) (640)bp 42.1 15.4 9.4 (51.4) -

% Chg (qoq) 5.7 9.5 (69.3) (340)bp 11.3 11.8 25.9 1.2 -

1HFY12 1042.7 1010.6 32.1 3.1 32.7 6.9 2.6 (4.8) 8.3 (13.0) 5.1 (18.2) (1.7) (1.0)

1HFY11 997.5 917.2 80.2 8.0 22.7 6.0 2.7 1.6 55.9 18.8 37.1 3.7 33.4 3.4 1.8

% Chg 4.5 10.2 (60.0) (490)bp 44.2 14.2 (3.3) (56.2) -

Exhibit 2: 2QFY2012 Actual vs. Estimates


Actual Net sales (` cr) EBITDA margin (%) Net profit after JV share (` cr)
Source: Company, Angel Research

Estimates 465.0 5.2 1.4

Variation (%) 15.2 (380)bp -

535.8 1.4 (18.7)

Double digit growth on topline front


For 2QFY2012, CCCLs top line grew by 9.5% yoy to `535.8cr (`489.5cr), against our estimate of `465.0cr. CCCL has been witnessing torrid time in recent past as the company struggled to post decent topline growth in spite of robust order book mainly on account of high proportion of slow moving orders, delay in statutory clearances and slowdown in industrial capex. Management has guided that, order visibility in the industrial segment is very bleak and conversion of enquires into orders has been negligible in the Infrastructure sector (read power segment), indicating that order inflow from these two segments would be subdued and thereby leading to intense competition for orders. CCCL still has ~`2,000cr (`1,000cr power and metro projects each) worth of slow-moving orders out of the total order book of `5,936cr, which will keep revenue growth under check for the next few quarters. Against this background, we are factoring in revenue growth of 7.4% and 12.0% for FY2012 and FY2013, respectively, on a consolidated basis.

Projects update
On the Chennai Airport project, CCCL booked revenues of `138cr during the quarter. The company is hopeful of completing the balance project (~`200cr) by December 2011.

October 28, 2011

CCCL | 2QFY2012 Result Update

On the 5MW solar power plant front, CCCL expects to achieve completion by January 2012. However, the Delhi car park project has not begun yet due to approval pending from Delhi Municipal Corporation, which is expected soon.

Exhibit 3: Decent revenue growth


700 600 500 400 300 200 100 0 2.7 (3.4) 8.5 30.2 33.2 23.4 8.5 10.0 1.1 (0.2) 9.5 40 35 30 25 20 15 10 5 0 (5) (10)

Exhibit 4: Overall slowdown takes toll on order inflow


2,500 2,000 1,500 1,000 1,541 500 496 321 678 693 443 352 1,706 1160 553 250 319 1939 250 200 150 100 50 0 (50) (100)

4.5

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

1QFY12

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

Sales (` cr, LHS)

Growth (yoy %, RHS)

Order Booking (` cr, LHS)

Growth (yoy %, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

EBITDAM take a plunge + high interest cost

Earnings in red

The major disappointment came on the margin front, as the company posted abysmal EBITDA margin of 1.4% (7.8%), registering a drop of 640bp yoy against our expectation of 261bp. On a sequential basis as well, the companys margin witnessed a decline of 340bp. The margin decline can mainly be attributed to commodity price pressures (steel, cement and sand), increased employee cost (one-time loyalty bonus and increments) and high labor cost on account of engagement of specialized agencies. Moreover, CCCL still has ~`1,300-1,400cr worth of (low-margin legacy orders + fixed price contracts), which will keep CCCLs EBITDA margin under pressure for another four quarters. Hence, we are further reducing our EBITDAM estimates to 3.7% (6.3%) and 5.9% (7.3%) for FY2012 and FY2013, respectively. Interest cost has increased to `17.2cr (`12.1cr), registering a jump of 42.1% yoy and 11.3% sequentially. This is on account of increased debt levels by `87cr (to fund working capital requirements) during the quarter and a high interest rate scenario. Against this backdrop, the company posted loss of `18.7cr vs. profit of `13.7cr in 2QFY2011, against our expectation of `1.4cr profit.

October 28, 2011

4QFY11

2QFY12

CC | 2QFY2 CCL 2012 Result Update

Exhibit 5: EBITDAM goes for a toss... t M


80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 6.8 5.4 3.5 1.4 7.1 7.3 8.9 9.0 11. .4 8.3 7.8 4.8 9.7 12.0 1 10.0 1 8.0 8 6.0 6 4.0 4 2.0 2 -

Exhib 6: ...lead bit ding to losse on bottom line front es m


40.0 0 30.0 0 20.0 0 10.0 0 4.1 3.0 .3 4. 4.3 5.3 4.7 4.7 3.5 2.8 3. 4 6.0 5.0 4.0 3.0 2.0 0.2 0.1 1.0 -

1QFY12

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

2QFY12

(10. 0) (20. 0) (30. 0)

(1.0) (2.0) (3.0) (4.0)

2QFY09

3QFY09

4QFY09

4QFY11

1QFY12

2QFY12

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

(3.5)

EBIT TDA (` cr, LHS)

EBITDAM (%, RHS) M

PAT (` cr, LHS)

PATM (%, RHS)

Source: Company, Ange Research el

Source Company, An e: ngel Research

Order bo analysi ook is


As of 2QFY Y2012, CCCLs order boo stood at ` ok `5,936cr (2.7 FY2011 rev 7x venue), up 5.8% yo dominate by the infrastructure (4 oy, ed 46.3%) and commercial (42.9%) c segments. The industria and reside al ential segme ents accounte for the ba ed alance. anys order book is spread across pric protected (59.1%), fixed price b ce d The compa (18.6%) and without material (22.3%) contracts. )

Exhibit 7: Segmen t ntal order in nflow for the quarter (` cr) e `

Exhib 8: Order book at 2.7 FY2011 revenue (` c bit r 7x r cr)

Source: Company, Ange Research el

Source Company, An e: ngel Research

October 28, 2011

CCCL | 2QFY2012 Result Update

Change in estimates
We are revising our estimates further downwards for FY2012 and FY2013 to factor in the poor performance during the quarter, persistent weakness in business environment and expected poor performance in second half of the fiscal. On the margin front, we are factoring in a dip in EBITDAM to 3.7% (6.3%) and 5.9% (7.3%) for FY2012 and FY2013, respectively, as the company has acknowledged that margin pressure is likely to continue for the next four quarters due to the above-mentioned reasons. Further, with rising interest cost and dismal margin, our bottom-line estimates have been revised downwards to loss of `6.6cr vs. profit of `27.8cr for FY2012 and profit of `43.7cr (`65.8cr) for FY2013.

Exhibit 9: Change in estimates


FY2012 Earlier estimates Revenue EBITDA margin (%) PAT
Source: Company, Angel Research

FY2013 (260)bp (123.8) 2,646.1 7.3 65.8 2,646.1 5.9 43.7 (140)bp (33.7)

Revised estimates Variation (%) Earlier estimates Revised estimates Variation (%) 2,362.1 3.7 (6.6)

2,362.1 6.3 27.8

Return ratios take a hit, justifying the downgrade in PE multiple


In past CCCL reported superior return ratios because of which the stock traded at a premium in comparison to its peers. Currently, the companys return ratios have taken a hit due its poor performance. Going ahead as well, we see pressure on return ratios to continue for short to medium term and expect some improvement only in 2HFY2013. Thus, CCCL has lost an edge over its peers and hence we have further lowered f its target PE multiple to 7x from 8x.

Exhibit 10: Return ratios decline on low EBITDAM


40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 (5.0) FY2008 FY2009 FY2010 RoAE (%)
Source: Company, Angel Research

35.3

27.8

17.5

19.3 13.2 10.5 6.0 7.7 FY2011 RoACE (%) FY2012E (1.1) 7.0 FY2013E

14.9

16.6

October 28, 2011

CCCL | 2QFY2012 Result Update

Outlook and valuation


CCCL has been posting erratic numbers on the EBITDAM front and consequently has been performing poorly on the earnings front as well since the last few quarters. We have revised our numbers and PE multiple downwards owing to the reasons mentioned above. Our revised target price for CCCL is `17/share based on 7.0x on its FY2013E EPS of `2.4; implying a downside of ~11% from current levels hence, we downgrade the stocks rating to Reduce from Neutral.

Exhibit 11: Key assumptions


FY2008 Order inflow (` cr) Revenue (` cr) Order backlog (Y/E) Order book-to-sales ratio (x)
Source: Company, Angel Research

FY2009 2,512 1,841 3,323 1.8

FY2010 2,166 1,976 3,392 1.7

FY2011 3,537 2,199 4,968 2.3

FY2012E 3,913 2,362 6,519 2.8

FY2013E 4,707 2,646 8,580 3.2

2,138 1,477 2,652 1.8

Exhibit 12: Angel EPS forecast vs. consensus


Angel forecast FY2012E FY2013E
Source: Company, Angel Research

Bloomberg consensus 1.8 3.5

Variation (%) 49.8

(0.4) 2.4

Exhibit 13: Recommendation summary


Company CCCL HCC IRB Infra IVRCL JP Assoc. Punj Lloyd NCC Sadbhav Simplex In. Patel Engg Madhucon L&T ITNL CMP 19 29 169 41 79 58 55 132 212 99 70 204 TP Rating FY11 17 Reduce - Neutral 193 60 85 82 167 299 106 259 Accu. Buy Accu. Buy Buy Buy Buy Buy Buy 2,199 4,093 2,438 5,651 7,850 5,074 2,209 4,889 3,499 1,816 4,049 Top-line (` cr) FY12E 2,362 4,152 3,024 5,798 FY13E CAGR (%) 2,646 4,633 3,980 6,994 9.7 6.4 27.8 11.2 13.1 18.3 14.8 13.9 12.4 1.2 17.6 19.4 26.5 2.5 1.2 13.6 5.9 5.5 (5.4) 6.4 8.0 21.5 18.4 5.6 54.3 22.3 EPS (`) FY11 FY12E FY13E CAGR (%) (0.4) (1.0) 12.5 4.2 3.7 2.5 5.5 8.7 20.4 17.1 5.8 64.2 23.9 2.4 0.6 14.0 6.1 5.3 4.0 6.7 10.0 29.9 16.7 6.8 74.0 25.3 (3.5) (25.8) 1.5 1.6 (1.8) 2.4 12.2 18.1 (4.7) 10.7 16.7 6.4 7.7 5.7 3.9 14.3 4.1 7.0 9.8 0.9 4.2 19.0 1.6 Adj. P/E 6.2 5.5 21.1 23.5 4.7 6.4 10.4 1.0 4.0 16.1 1.5 8.2 5.5 3.8 14.8 14.5 3.9 5.5 7.1 1.0 3.4 13.9 1.4 OB/ 2.7 4.0 4.2 3.0 3.2 3.2 2.9 2.7 3.5 3.2 5.5 FY11 FY12E FY13E Sales(x)

13,832 15,092 17,683 9,585 10,992 5,755 2,602 5,286 3,272 1,959 4,910 6,689 2,865 6,178 3,587 2,512 6,484

- Neutral

- Neutral

1,413 1,714

43,905 53,503 62,568

Source: Company, Angel Research;

October 28, 2011

CCCL | 2QFY2012 Result Update

Exhibit 14: SOTP breakup Across players


Company CCCL HCC IRB Infra IVRCL JP Assoc. Punj Lloyd NCC Sadbhav Simplex In. Patel Engg Madhucon L&T ITNL Core Const. ` 17 4 101 43 31 72 53 90 299 40 59 1,332 90 % to TP 100 9 52 71 37 100 65 54 100 33 55 78 35 ` 23 30 2 47 2 Real Estate % to TP 54 35 2 38 2 Road BOT ` 16 70 8 76 16 33 143 % to TP 37 36 10 46 13 31 55 Invst. In Subsidiaries ` 4 17 382 % to TP 2 29 22 ` 18 24 18 19 12 25 Others % to TP 9 29 22 16 12 10 Total ` 17 44 193 60 85 72 82 167 299 122 106 1,714 259

Source: Company, Angel Research

October 28, 2011

CCCL | 2QFY2012 Result Update

Profit & loss statement (Consolidated)


Y/E March (` cr) Net Sales Other operating income Total operating income % chg Total Expenditure Net Raw Materials Other Mfg costs Personnel Other EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Inc (incl pft frm As/JV) (% of PBT) Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Less: Share of JV Partn profit Less: Minority interest (MI) Prior period items PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) (Reported) Fully Diluted EPS (`) % chg 115 89 87.2 6.0 6.2 4.8 87.2 72 72 (18.9) 3.9 3.9 3.9 (18.9) 92 92 26.6 4.6 5.0 5.0 26.6 FY2008 1,477 1,477 70.1 1,308 959 217 71 61 169 126.8 11.5 6 164 130.6 11.1 12 8 4.9 160 149.5 160 45 28.3 115 FY2009 FY2010 FY2011 FY2012E FY2013E 1,841 1,841 24.6 1,712 1,439 47 106 120 128 (24.1) 7.0 9 120 (27.0) 6.5 18 9 8.5 111 (31.0) 111 38 34.5 72 1,976 1,976 7.3 1,797 1,545 114 138 179 39.5 9.1 11 168 40.7 8.5 33 6 4.5 142 28.5 142 50 35.5 92 2,199 2,199 11.3 2,046 1,744 143 158 153 (14.6) 7.0 14 139 (17.3) 6.3 49 5 5.5 95 (33.2) 95 36 37.7 59 12.2 47 47 (48.8) 2.1 2.5 2.5 (48.8) 2,362 2,362 7.4 2,275 1,841 122 142 170 87 (43.0) 3.7 16 71 (49.0) 3.0 73 6 145.2 4 (95.3) 4 2 35.0 3 9.5 (7) (7) (114.1) (0.3) (0.4) (0.4) (114.1) 2,646 2,646 12.0 2,490 2,011 124 164 191 156 78.7 5.9 18 138 94.1 5.2 80 7 10.5 65 1,350.5 65 21 32.4 44 44 44 (761.0) 1.6 2.4 2.4 (761.0)

October 28, 2011

CCCL | 2QFY2012 Result Update

Balance sheet (Consolidated)


Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves& Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Investments Current Assets Inventories Sundry Debtors Cash Loans & Advances Other Current liabilities Net Current Assets Misc. Exp. not written off Total Assets 94.3 13.4 80.9 2.1 99.1 865 633 12.5 87.7 132.2 452 413 14.2 609 160.6 22.1 138.4 6.4 56.9 1,089 807 8.8 129.9 143.7 546 544 12.4 758 189.7 33.1 156.6 15.5 9.4 1,358 1,020 12.0 170.1 156.2 554 805 1.4 988 219.5 46.7 172.8 36.2 3.1 1,514 1,204 7.6 85.2 216.6 605 909 0.1 1,121 249.5 63.1 186.4 36.2 33.1 1,647 1,294 8.2 66.1 279.2 650 997 0.1 1,253 279.5 81.5 198.1 36.2 43.1 1,823 1,449 9.2 98.4 265.8 728 1,095 0.1 1,372 37.0 416.8 453.8 125.5 29.6 609 37.0 479.1 516.1 197.6 44.2 758 37.0 552.3 589.2 338.8 59.5 988 37.0 591.4 628.4 431.4 61.2 1,121 37.0 572.9 609.9 582.2 61.2 1,253 37.0 604.7 641.6 669.5 61.2 1,372 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

October 28, 2011

CCCL | 2QFY2012 Result Update

Cash flow statement (Consolidated)


Y/E March (` cr) Profit before tax (excluding MI) Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2008 FY2009 FY2010 159.9 5.6 159.0 7.9 32.2 (33.7) (36.7) (99.1) 7.9 (127.9) 188.7 10.0 10.8 (28) 160.4 (1.2) 88.9 87.7 110.5 9.0 88.8 9.4 23.6 (2.2) (70.6) 42.2 9.4 (18.9) 72.1 9.2 0 63.3 42.2 87.7 129.9 142.0 11.0 220.6 6.4 37.7 (111.7) (38.2) 47.5 6.4 15.6 141.2 10.8 6 136.3 40.3 129.9 170.1 FY2011 FY2012E FY2013E 82.6 14.0 189.2 5.2 35.7 (133.5) (50.6) 6.4 5.2 (39.1) 92.6 10.8 6 87.6 (84.9) 170.1 85.2 (5.0) 16.4 107.7 6.5 1.6 (104.4) (30.0) (30.0) 6.5 (53.5) 150.8 11.9 138.9 (19.1) 85.2 66.1 64.6 18.3 65.1 6.8 21.0 (9.9) (30.0) (10.0) 6.8 (33.2) 87.3 11.9 75.4 32.3 66.1 98.4

October 28, 2011

10

CCCL | 2QFY2012 Result Update

Key Ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets 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 (%) ROACE (Pre-tax) Angel ROIC (Pre-tax) ROAE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) W. cap cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 0.1 0.2 14.2 0.1 0.5 6.5 0.3 0.9 5.2 0.6 2.3 2.8 0.8 5.9 1.0 0.9 3.7 1.7 19.2 120 2 77 62 14.4 143 2 93 73 11.3 169 2 100 97 10.7 185 2 94 121 10.1 193 1 95 136 10.0 189 1 93 133 35.3 43.6 27.8 17.5 20.8 14.9 19.3 23.3 16.6 13.2 15.0 7.7 6.0 6.4 (1.1) 10.5 11.2 7.0 11.1 0.7 3.9 31.3 6.9 0.1 33.7 6.5 0.7 3.2 13.6 7.5 0.1 14.3 8.5 0.6 2.7 15.0 7.8 0.2 16.5 6.3 0.6 2.4 9.4 8.0 0.4 9.9 3.0 0.7 2.1 4.1 9.4 0.7 0.5 5.2 0.7 2.2 7.6 8.6 0.9 6.6 6.2 4.8 5.1 0.5 24.6 3.9 3.9 4.4 0.5 27.9 5.0 5.0 5.6 0.5 31.9 2.5 2.5 3.3 0.5 34.0 (0.4) (0.4) 0.5 0.6 33.0 2.4 2.4 3.4 0.6 34.7 4.0 3.8 0.8 2.6 0.3 2.3 0.7 5.0 4.4 0.7 2.6 0.2 3.3 0.6 3.9 3.5 0.6 2.6 0.3 2.9 0.5 7.7 5.9 0.6 2.6 0.3 4.6 0.6 36.8 0.6 2.8 0.4 10.0 0.7 8.2 5.8 0.6 2.8 0.4 6.0 0.7 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

October 28, 2011

11

CCCL | 2QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

CCCL No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

October 28, 2011

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