2QFY2014 Result Update Banking November 1, 2013 Syndicate Bank Performance Highlights Particulars (`cr) 2QFY14 1QFY13 % chg (qoq) 2QFY13 % chg (yoy) NII 1,411 1,337 5.5 1,391 1.5 Preprov. profit 811 949 (14.5) 843 (3.8) PAT 470 452 3.9 463 1.5 Syndicate Bank reported a weak operating performance for the quarter, with the operating profit declining by 3.8% yoy. The NII came in largely flat yoy (vs an advances growth of 20.7% yoy), while the noninterest income grew by 2.3% yoy. The bank witnessed significant asset quality pressures during the quarter, as absolute Gross NPAs grew 25.8% qoq (on account of higher slippages). The provisioning expenses for the bank declined 29.1% yoy, which aided the bank to report a PBT level earnings growth of 29.6% yoy. Tax expenses remained at near zero levels as against tax reversals of `100cr in 2QFY2013, thereby resulting in a muted PAT growth of 1.5% yoy. NIM increases qoq; Sequentially higher slippages affect asset quality: During 2QFY2014, the bank witnessed a healthy growth in its business, as advances grew by 20.7% yoy, while growth in deposits came in at 22.4% yoy. Despite the 39.6% yoy growth witnessed in current deposits, the growth in CASA deposits remained healthy at 15.4% yoy, due to moderate growth of 8.4% yoy in saving deposits. The CASA ratio for the bank remained stable qoq at 28.2%. During the quarter, the cost of deposits for the bank declined 8bp qoq to 6.5%, and hence, the bank s reported NIM increased 6bp sequentially to 2.9%. The noninterest income (excluding treasury) for the bank grew at a moderate pace of 9.5% yoy to `268cr, on back of flat performance on the fee income front. During the quarter, the bank witnessed significant asset quality pressures, as the slippages came in higher at `1,780cr (annualized slippage ratio of 4.8%) as compared to average quarterly run rate of around `970cr for the last four quarters. Recoveries and upgrades at `535cr in 2QFY2014, were inline with the performance seen in the previous few quarters. Higher slippages resulted in a 25.8% qoq increase in absolute Gross NPAs, while Net NPA levels increased sequentially by 44.8%, due to decline in PCR by 617bp qoq to 70.6%. During the quarter, the bank restructured advances worth ~`265cr, thereby taking its outstanding restructured book to `9,807cr. As per the Management, the restructuring pipeline includes a large account (~`2,100cr advance to Andhra Discom) which might come up in the next few quarters. Outlook and valuation: Though the bank has a modest CASA and fee income franchise, with a CASA ratio of 28.2% as of 2QFY2014 and fee income at 0.5% of average assets as of FY2013, it has relatively comfortable asset quality outlook as compared to peers owing to its diversified loan book. However, we believe that the asset quality outlook for the banking sector remains challenging, given an overall weak macro environment. Hence, we remain Neutral on the stock. Key financials (Standalone) Y/E March (` cr) FY2012 FY2013 FY2014E FY2015E NII 5,085 5,454 5,649 6,208 % chg 16.0 7.3 3.6 9.9 Net profit 1,313 2,004 1,680 1,328 % chg 25.3 52.6 (16.2) (20.9) NIM (%) 3.1 2.8 2.5 2.4 EPS (`) 21.8 33.3 27.9 22.1 P/E (x) 3.7 2.4 2.9 3.7 P/ABV (x) 0.6 0.5 0.5 0.4 RoA (%) 0.8 1.0 0.7 0.5 RoE (%) 17.9 22.8 16.4 11.7 ; Note: CMP as of October 31, 2013 NEUTRAL CMP `81 Target Price Investment Period Stock Info Sector Market Cap (` cr) Bloomberg Code Shareholding Pattern (%) Please refer to important disclosures at the end of this report 1 Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code BANKS 4897 1.3 145/61 1980973 10 21164.52 6299 SBNK.BO SNDB@IN Promoters 66.2 MF / Banks / Indian Fls 14.8 FII / NRIs / OCBs 5.6 Indian Public / Others 13.4 Abs. (%) 3m 1yr 3yr Sensex 9.4 14.4 5.7 Syndicate Bank (7.5) (30.9) (41.4) Vaibhav Agrawal 022 3935 7800 Ext: 6808 vaibhav.agrawal@angelbroking.com Sourabh Taparia 022 3935 7800 Ext: 6872 sourabh.taparia@angelbroking.com Harshal Patkar 022 3935 7800 Ext: 6847 harshal.patkar@angelbroking.com
Exhibit 1: 2QFY2014 performance (Standalone) Particulars (` cr) 2QFY14 1QFY14 % chg (qoq) 2QFY13 % chg (yoy) FY2013 FY2012 % chg Interest earned 4,574 4,432 3.2 4,276 7.0 9,006 8,519 5.7 on Advances / Bills 3,570 3,480 2.6 3,403 4.9 7,050 6,726 4.8 on investments 927 863 7.3 780 18.8 1,790 1,588 12.7 on balance with RBI & others 77 75 3.3 65 19.4 152 127 20.1 on others 14 NA 28 NA 14 78 (82.2) Interest Expended 3,163 3,094 2.2 2,885 9.6 6,257 5,809 7.7 Net Interest Income 1,411 1,337 5.5 1,391 1.5 2,749 2,710 1.4 Other income 276 295 (6.2) 270 2.3 571 506 12.9 Other income excl. treasury 268 210 28.1 245 9.5 478 458 4.4 Fee Income 122 107 14.0 123 (0.8) 229 241 (5.0) Treasury Income 8 85 (90.6) 25 (68.0) 93 48 93.8 Profit on exchange transactions 10 27 2.6 20 (50.0) 79 68 16.2 Others 136 76 80.6 102 33.5 170 149 14.2 Operating income 1,688 1,632 3.4 1,661 1.6 3,320 3,216 3.2 Operating expenses 877 683 28.3 818 7.2 1,560 1,531 1.9 Employee expenses 596 439 35.7 565 5.4 1,035 1,050 (1.4) Other Opex 281 244 15.0 253 11.1 525 481 9.0 Preprovision Profit 811 949 (14.5) 843 (3.8) 1,760 1,684 4.5 Provisions & Contingencies 340 489 (30.5) 480 (29.1) 829 992 (16.5) Provisions for NPAs 436 171 155.0 478 (8.8) 607 742 (18.2) Provisions for Investments 86 59 45.8 (4) NA 145 (10) NA Other Provisions (182) 259 NA 6 NA 77 261 (70.4) PBT 471 459 2.6 364 29.6 931 692 34.5 Provision for Tax 1 7 (84.8) (100) (101.1) 8 (212) NA PAT 470 452 3.9 463 1.5 922 904 2.1 Effective Tax Rate (%) 0.2 1.5 (132)bp (27.4) 2767bp 0.9 (30.6) 3149bp Exhibit 2: 2QFY2014 Actual vs. Angel estimates Particulars (` cr) Actual Estimates % chg Net interest income 1,411 1,334 5.8 Noninterest income 276 264 4.9 Operating income 1,688 1,597 5.7 Operating expenses 877 803 9.2 Preprov. profit 811 795 2.1 Provisions & cont. 340 487 (30.2) PBT 471 308 53.2 Prov. for taxes 1 62 (98.2) PAT 470 246 91.0 November 1, 2013 2
Exhibit 3: 2QFY2014 performance (Standalone) Particulars 2QFY14 1QFY13 % chg (qoq) 2QFY13 % chg (yoy) Balance sheet Advances (` cr) 153,013 149,383 2.4 126,781 20.7 Deposits (` cr) 190,820 182,513 4.6 155,854 22.4 CredittoDeposit Ratio (%) 80.2 81.8 (166)bp 81.3 (116)bp Current deposits (` cr) 14,547 13,774 5.6 10,419 39.6 Saving deposits (` cr) 39,173 37,370 4.8 36,126 8.4 CASA deposits (` cr) 53,720 51,144 5.0 46,545 15.4 CASA ratio (%) 28 28.0 13bp 29.9 (171)bp CAR (%) 11.9 11.9 1bp 11.3 61bp Tier 1 CAR (%) 8.6 8.5 12bp 8.4 14bp Profitability Ratios (%) Cost of deposits 6.5 6.6 (8)bp 7.0 (49)bp Yield on advances 9.62 9.7 (9)bp 10.8 (121)bp Reported NIM 2.89 2.83 6bp 3.3 (37)bp Costtoincome ratio 51.9 41.9 1006bp 49.2 270bp Asset quality Gross NPAs (` cr) 4,472 3,554 25.8 3,179 40.7 Gross NPAs (%) 2.9 2.4 50bp 2.5 41bp Net NPAs (` cr) 2,547 1,759 44.8 1,164 118.7 Net NPAs (%) 1.7 1.2 47bp 0.9 74bp Provision Coverage Ratio (%) 70.6 76.8 (617)bp 82.3 (1168)bp Slippage ratio (%) 4.8 3.6 118bp 3.3 156bp NPA to avg. assets (%) 0.8 0.3 48bp 1.0 (24)bp Business growth healthy; NIM up 6bp qoq to 2.9% During 2QFY2014, the bank witnessed healthy growth in its business, as advances grew by 20.7% yoy, while growth in deposits came in at 22.4% yoy. Despite the 39.6% yoy growth witnessed in current deposits, the growth in CASA deposits remained healthy at 15.4% yoy, due to moderate growth of 8.4% yoy in saving deposits. The CASA ratio for the bank remained stable qoq at 28.2%. During the quarter, the bank witnessed an 8bp sequential decline in its cost of deposits, mainly on account of lower reprising of its bulk deposits. Share of bulk deposits (differential rate deposits and certificate of deposits) to total deposits for the bank stands elevated at 16.44% (as compared to 14.05% in 1QFY2014). Aided by the sequential decline in its cost of deposits, the bank s NIM grew 6bp sequentially to 2.9%. November 1, 2013 3
Exhibit 4: Business growth remains healthy Exhibit 5: CASA ratio stable sequentially 25.0 20.0 15.0 10.0 5.0 Adv. yoy chg (%) Dep. yoy chg (%) CDR (%, RHS) 81.3 12.7 10.5 82.1 17.3 14.6 79.6 19.4 17.4 81.8 15.6 16.0 79.6 20.7 22.4 82.5 82.0 81.5 81.0 80.5 80.0 79.5 79.0 78.5 78.0 32.5 30.0 27.5 25.0 22.5 CASA ratio CASA yoy growth (%, RHS) 15.5 15.4 11.9 9.9 8.1 29.9 29.5 28.0 28.0 28.2 22.5 15.0 7.5 * Calculated as a % of global deposits Exhibit 6: 8bp qoq decline in cost of deposits... 7.25 7.00 7.00 Exhibit 7:...aided 6bp qoq improvement in NIM (%) 3.50 3.26 3.29 6.75 6.50 6.70 6.56 6.59 6.51 3.00 2.97 2.83 2.89 6.25 2.50 6.00 2.00 2QFY13 3QFY13 4QFY13 2QFY14 1QFY15 Moderate performance of noninterest income (excl. treasury) on back of flat Fee Income yoy During 2QFY2014, the noninterest income (excluding treasury) for the bank grew at a moderate pace of 9.5% yoy to `268cr. While fee income remained flat yoy at `122cr, forex income and treasury income degrew by 50.0% and 68.0% yoy respectively. The others income head grew strong at 33.5% yoy. Overall, the bank reported a marginal growth of 2.3% yoy in its noninterest income to `276cr. Sequentially higher slippages affect asset quality The bank witnessed significant deterioration on the asset quality front during the quarter, as slippages came in higher at `1,780cr (annualized slippage ratio of 4.8%) as compared to average quarterly run rate of around `970cr for the last four quarters. Recoveries and upgrades at `535cr in 2QFY2014 were inline with the performance seen in the previous few quarters. Due to higher slippages, Gross NPA levels, on an absolute basis, increased by 25.8% qoq, while Net NPA levels increased sequentially by 44.8%, due to decline in PCR by 617bp qoq to 70.6%. On a relative basis, the Gross and net NPA ratios increased by 50bp and 47bp qoq respectively to 2.9% and 1.7%. During the quarter, the bank restructured advances worth ~`265cr, thereby taking its outstanding restructured book to `9,807cr. As per the Management, the November 1, 2013 4
restructuring pipeline includes a large account (~`2,100cr advance to Andhra Discom) which might come up in the next few quarters. Exhibit 8: Slippages surge to 4.8% in 2QFY2014 Exhibit 9: NPA ratios spike; PCR decline sequentially (%) 6.0 5.0 4.0 3.0 2.0 1.0 4.8 3.3 3.6 2.9 2.0 2.5 2.0 1.5 1.0 0.5 Gross NPAs (%) Net NPAs (%) PCR (%, RHS) 82.3 83.0 83.4 76.8 70.6 2.5 0.9 2.3 0.9 2.0 0.8 2.4 1.2 2.9 1.7 90.0 80.0 70.0 60.0 50.0 ; Note: PCR including tech. writeoffs Exhibit 10: Network expansion at steady pace 3,100 2,900 2,700 Exhibit 11: Cost ratios rise Costtoincome ratio (%) 60.0 1.8 1.7 50.0 40.0 30.0 Opex to average assets (%, RHS) 2.0 1.6 1.6 1.3 1.5 1.0 2,500 2,738 2,761 2,934 3,004 3,047 2,300 20.0 10.0 49.2 48.2 48.3 41.9 51.9 0.5 Marginal Tax expenses for 2QFY2014; Management expects full year tax expenses to be `200cr During FY2013, the tax expense for the bank came in at `1cr. Going ahead, as per the Management, the bank will start paying taxes at normal rates and for FY2014, the Management expects the total tax expense to be around `200cr. November 1, 2013 5
Investment arguments Asset quality remains the key monitorable Slippages for the bank, after tapering off slightly in 4QFY2013, have again spiked in 1QFY2014 and 2QFY2014. Recoveries/upgrades for the bank have remained stable over the last few quarters; however, the Management remains hopeful of higher recoveries and upgrades, going ahead. The bank s conservative lending, visible in its low yield on advances (reported at 10.5% in FY2013 and 9.6% in 1HFY2014), and moderate advances growth (16.3% CAGR over FY201013), are expected to lead to a relatively better asset quality than peer banks. We expect slippages to be at 2.8% in FY2014 and 2.3% in FY2015. Outlook and valuation Though the bank has a modest CASA and fee income franchise, with a CASA ratio of 28.2% as of 2QFY2014 and fee income at 0.5% of average assets as of FY2013, it has relatively comfortable asset quality outlook as compared to peers owing to its diversified loan book. However, we believe that the asset quality outlook for the banking sector remains challenging, given an overall weak macro environment. Hence, we remain Neutral on the stock. Exhibit 12: Key assumptions Particulars (%) Earlier estimates Revised estimates FY2014 FY2015 FY2014 FY2015 Credit growth 16.0 15.0 16.0 15.0 Deposit growth 12.0 15.0 14.0 15.0 CASA ratio 27.5 27.0 27.0 26.5 NIMs 2.5 2.5 2.5 2.4 Other income growth 2.0 10.3 0.6 10.4 Growth in staff expenses (2.5) 7.5 7.5 Growth in other expenses 12.5 6.5 5.0 Slippages 2.8 2.3 3.5 2.6 Coverage ratio 75.0 75.0 69.5 72.5 Source: Angel Research Exhibit 13: Change in estimates FY2013 FY2014 Particulars (` cr) Earlier Revised Earlier Revised Var. (%) Var. (%) estimates estimates estimates estimates NII 5,496 5,649 2.8 6,170 6,208 0.6 Noninterest income 1,198 1,182 (1.4) 1,322 1,304 (1.4) Operating income 6,694 6,831 2.0 7,492 7,512 0.3 Operating expenses 3,124 3,244 3.8 3,409 3,461 1.5 Preprov. profit 3,570 3,587 0.5 4,083 4,051 (0.8) Provisions & cont. 1,948 1,611 (17.3) 2,006 2,154 7.4 PBT 1,622 1,976 21.9 2,077 1,897 (8.6) Prov. for taxes 373 296 (20.5) 706 569 (19.4) PAT 1,249 1,680 34.5 1,371 1,328 (3.1) Source: Angel Research November 1, 2013 6
Exhibit 14: P/ABV band 250 Price (`) 0.4x 0.6x 0.8x 1x 1.2x 200 150 100 50 0 Apr04 Sep04 Feb05 Jul05 Dec05 May06 Oct06 Mar07 Aug07 Jan08 Jun08 Nov08 Apr09 Sep09 Feb10 Jul10 Dec10 May11 Oct11 Mar12 Aug12 Jan13 Jun13 Nov13 Exhibit 15: Recommendation summary Company Reco. CMP (`) Tgt. price (`) Upside (%) FY2015E P/ABV (x) FY2015E Tgt. P/ABV (x) FY2015E P/E (x) FY201315E EPS CAGR (%) FY2015E RoA (%) FY2015E RoE (%) AxisBk Accumulate 1,223 1,383 13.1 1.3 1.5 7.8 19.3 1.7 18.1 FedBk Neutral 82 0.9 8.1 1.8 1.0 11.9 HDFCBk Accumulate 679 752 10.7 3.2 3.5 14.9 26.8 2.1 23.0 ICICIBk* Accumulate 1,121 1,187 5.9 1.6 1.7 11.6 15.6 1.5 15.3 SIB Neutral 21 0.8 5.0 6.2 0.9 16.3 YesBk Neutral 369 1.5 7.5 16.6 1.4 22.7 AllBk Neutral 92 0.5 3.1 12.0 0.6 12.3 AndhBk Neutral 58 0.4 3.7 (17.5) 0.5 9.5 BOB Neutral 643 0.7 5.2 7.6 0.8 13.9 BOI Neutral 210 0.5 3.4 15.0 0.7 13.6 BOM Neutral 40 0.5 4.0 (2.8) 0.5 12.5 CanBk Neutral 258 0.5 4.4 (4.8) 0.5 10.2 CentBk Neutral 54 0.6 3.7 34.3 0.5 11.8 CorpBk Neutral 286 0.4 3.2 (1.7) 0.6 12.6 DenaBk Neutral 54 0.4 2.6 (4.6) 0.6 12.9 IDBI# Neutral 68 0.4 3.5 16.6 0.7 11.8 IndBk Neutral 83 0.3 2.5 (4.5) 0.7 12.3 IOB Neutral 51 0.4 3.5 53.8 0.5 9.9 J&KBk Neutral 1,304 1.0 6.3 (2.8) 1.3 16.4 OBC Neutral 181 0.4 3.5 6.0 0.6 10.8 PNB Neutral 544 0.5 3.5 8.0 1.0 15.0 SBI* Neutral 1,796 1.1 8.0 4.2 0.8 13.8 SynBk Neutral 81 0.4 3.7 (18.6) 0.5 11.7 UcoBk Neutral 72 0.7 4.6 67.3 0.6 13.8 UnionBk Neutral 124 0.4 3.1 4.8 0.6 13.1 UtdBk Neutral 34 0.3 2.8 20.7 0.4 9.5 VijBk Neutral 41 0.5 4.9 (3.7) 0.3 9.2 ; Note: *Target multiples=sotp Target Price/ABV (including subsidiaries), # Without adjusting for SASF November 1, 2013 7
Company Background Syndicate Bank is a southbased midsized PSU bank, with an asset base in excess of `2.2lakh cr. The bank has 3,047 branches, with a more spread out network than other regional banks, having 58% branches in Rural and SemiUrban areas. The bank also has a reasonable presence overseas, which accounts for ~21% of its total advances. November 1, 2013 8
Income statement (Standalone) Y/E March (` cr) FY10 FY11 FY12 FY13 FY14E FY15E Net Interest Income 2,740 4,383 5,085 5,454 5,649 6,208 YoY Growth (%) 7.5 60.0 16.0 7.3 3.6 9.9 Other Income 1,167 915 1,076 1,174 1,182 1,304 YoY Growth (%) 27.6 (21.6) 17.6 9.2 0.6 10.4 Operating Income 3,907 5,298 6,161 6,628 6,831 7,512 YoY Growth (%) 12.8 35.6 16.3 7.6 3.1 10.0 Operating Expenses 2,034 2,548 2,814 3,179 3,244 3,461 YoY Growth (%) 13.5 25.3 10.4 13.0 2.0 6.7 Pre Provision Profit 1,874 2,750 3,347 3,450 3,587 4,051 YoY Growth (%) 12.1 46.8 21.7 3.1 4.0 12.9 Prov. & Cont. 700 1,464 1,959 1,886 1,750 2,152 YoY Growth (%) 10.2 109.3 33.8 (3.7) (7.2) 23.0 Profit Before Tax 1,174 1,286 1,388 1,563 1,837 1,900 YoY Growth (%) 13.3 9.5 8.0 12.6 17.5 3.4 Prov. for Taxation 361 238 75 (441) 276 570 as a % of PBT 30.7 18.5 5.4 (28.2) 15.0 30.0 PAT 813 1,048 1,313 2,004 1,562 1,330 YoY Growth (%) (10.9) 28.8 25.3 52.6 (22.1) (14.9) Balance sheet (Standalone) Y/E March (` cr) FY10 FY11 FY12 FY13 FY14E FY15E Share Capital 522 573 602 602 602 602 Reserve & Surplus 5,105 6,478 8,439 9,939 11,232 12,243 Deposits 117,026 135,596 157,941 185,356 211,306 243,002 Growth (%) 1.0 15.9 16.5 17.4 14.0 15.0 Borrowings 8,555 6,010 7,072 8,296 9,783 11,185 Tier 2 Capital 3,618 3,518 3,518 4,518 4,405 4,295 Other Liab. & Prov. 4,225 4,364 4,896 6,411 7,240 8,307 Total Liabilities 139,051 156,539 182,468 215,123 244,567 279,634 Cash Balances 7,189 10,443 8,809 8,095 9,509 10,935 Bank Balances 5,545 1,523 5,076 8,489 6,114 6,991 Investments 33,011 35,068 40,815 45,648 50,068 56,106 Advances 90,406 106,782 123,620 147,569 171,180 196,857 Growth (%) 10.9 18.1 15.8 19.4 16.0 15.0 Fixed Assets 701 693 1,352 1,434 1,581 1,754 Other Assets 2,198 2,031 2,797 3,887 6,114 6,991 Total Assets 139,051 156,539 182,468 215,123 244,567 279,634 Growth (%) 6.8 12.6 16.6 17.9 13.7 14.3 November 1, 2013 9
Ratio analysis Y/E March FY10 FY11 FY12 FY13 FY14E FY15E Profitability ratios (%) NIMs 2.1 3.0 3.1 2.8 2.5 2.4 Cost to Income Ratio 52.0 48.1 45.7 48.0 47.5 46.1 RoA 0.6 0.7 0.8 1.0 0.7 0.5 RoE 16.6 17.6 17.9 22.8 15.4 11.8 B/S ratios (%) CASA Ratio 31.2 30.9 29.5 28.0 27.0 26.5 Credit/Deposit Ratio 77.3 78.8 78.3 79.6 81.0 81.0 CAR 12.7 13.0 12.2 12.6 12.0 11.2 Tier I 8.2 9.3 8.9 9.0 8.8 8.4 Asset Quality (%) Gross NPAs 2.2 2.4 2.5 2.0 3.3 3.9 Net NPAs 1.1 1.0 1.0 0.8 1.8 1.7 Slippages 1.8 1.7 2.9 1.7 3.5 2.6 Loan Loss Prov. /Avg. Assets 0.4 0.6 0.8 0.6 0.5 0.7 Provision Coverage 73.3 77.2 80.1 83.4 69.5 72.5 Per Share Data (`) EPS 15.6 18.3 21.8 33.3 25.9 22.1 ABVPS (75% cover.) 98.9 116.1 133.5 158.9 170.0 190.9 DPS 3.0 3.7 3.8 6.7 5.0 4.5 Valuation Ratios PER (x) 4.7 4.0 3.4 2.2 2.8 3.3 P/ABVPS (x) 0.7 0.6 0.5 0.5 0.4 0.4 Dividend Yield 4.1 5.0 5.2 9.1 6.8 6.1 DuPont Analysis NII 2.0 3.0 3.0 2.7 2.5 2.4 () Prov. Exp. 0.5 1.0 1.2 0.9 0.8 0.8 Adj. NII 1.5 2.0 1.8 1.8 1.7 1.5 Treasury 0.3 0.0 0.1 0.1 0.0 0.0 Int. Sens. Inc. 1.8 2.0 1.9 1.9 1.7 1.6 Other Inc. 0.6 0.6 0.6 0.5 0.5 0.5 Op. Inc. 2.4 2.6 2.5 2.4 2.2 2.0 Opex 1.5 1.7 1.7 1.6 1.4 1.3 PBT 0.9 0.9 0.8 0.8 0.8 0.7 Taxes 0.3 0.2 0.0 (0.2) 0.1 0.2 RoA 0.6 0.7 0.8 1.0 0.7 0.5 Leverage 27.4 24.9 23.1 22.6 22.6 23.2 RoE 16.6 17.6 17.9 22.8 15.4 11.8 November 1, 2013 10
Research Team Tel: 022 39357800 Email: 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 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 Syndicate Bank 1. Analyst ownership of the stock No 2. Angel and its Group companies ownership of the stock No 3. Angel and its Group companies' Directors ownership of the stock No 4. Broking relationship with company covered No Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (5 to 5%) Reduce (5% to 15%) Sell (< 15%) November 1, 2013 11