Banco Products (India) | Auto Ancillary
July 1, 2014
Banco Products (India)
BUY
CMP
`120
Initiating coverage with a BUY recommendation
Target Price
`172
Banco Products (India) (Banco) is among the leading manufacturers of radiators
Investment Period
12 months
and gaskets in the country with five manufacturing units. In July 2010, the
company acquired 51% stake in Lake Cement (a cement manufacturer), a
Stock Info
diversification into unrelated business which led to sharp correction in the stock
Sector
Auto Ancillary
price. In May, 2014, the company exited the cement business at ~52% premium
Market Cap (` cr)
859
for US$17.7mn and is now expected to use the proceeds for acquisition in auto
Net debt (` cr)
(46)
component related business in Europe which will further strengthen its foothold in
Beta
0.2
global auto component market. Additionally, the commercial vehicle (CV) industry
52 Week High / Low
117/ 33
which contributes ~80% to the company’s domestic revenue is also witnessing
revival, which poses a huge growth potential for the company.
Avg. Daily Volume
35,585
Face Value (`)
2
Recovery in global economy & revival in domestic CV industry to aid growth
BSE Sensex
25,414
The company is a leading exporter of aftermarket radiators to Europe, with a
Nifty
7,611
growing presence in the America, Middle East and African markets. The global
economy which witnessed couple of difficult years is now showing recovery signs
Reuters Code
BNCO.BO
(U.N. forecasts global economic growth of 3% in 2014 and 3.3% in 2015). Also,
Bloomberg Code
BNCO IN
the IHS Automotive predicts global auto sales to reach 85mn in 2014 and 100mn
in 2018 from 82.8mn in 2013. Further, production in the domestic CV industry
(contributes ~80% to domestic revenue) is to grow at a CAGR of 11% over
Shareholding Pattern (%)
FY2012-21E to 23.5lakh units. We expect these factors to aid the company’s
Promoters
67.9
revenue, which is expected to grow at a CAGR of 12.0% over FY2014-16E to
MF / Banks / Indian Fls
7.8
`1,457cr in FY2016E.
FII / NRIs / OCBs
4.8
Exit from Lake Cement - No further unrelated acquisitions
Indian Public / Others
19.5
In order to focus on the core business, the company has divested its entire stake in
Lake Cement for US$17.7mn, which is at an approximate premium of 52%. It is
expected that the company will use the proceeds from the sale of Lake Cement
Abs.(%)
3m 1yr
3yr
(US$17.7mn) for acquisitions related to the core business. We believe this will
Sensex
13.5
29.8
34.9
help the company in strengthening its core business and enable it to make related
Banco
67.9
240.9
68.3
acquisitions in Europe, which will enable it to fortify its presence in the global
market.
Outlook and valuation: We expect Banco to register a revenue CAGR of 12.0%
over FY2014-16E to `1,457cr with an operating margin of 15.2% in FY2016E.
The profit is expected to grow at a CAGR of 23.2% over the same period to
`136cr in FY2016E. At the CMP, the company is trading at a PE of 6.3x FY2016E
earnings. On account of growth potential with revival in CV industry and potential
acquisition plans, we initiate coverage on the company with a Buy
recommendation with a target price of `172 on a target PE of 9.0x FY2016E
earnings.
Financials (Consolidated)
Y/E
Sales OPM PAT EPS RoE P/E P/BV
EV/BITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%) (x)
(x)
(x)
(x)
Tejashwini Kumari
FY2015E
1,278
14.8
111
15.5
18.1
7.7
1.3
4.7
0.7
022-39357800 Ext: 6856
FY2016E
1,457
15.2
136
19.1
19.6
6.3
1.1
3.8
0.6
Source: Company, Angel Research; Note: CMP as of June 30, 2014
Please refer to important disclosures at the end of this report
1
Banco Products (India) | Initiating Coverage
Investment arguments
Improving global activities to aid growth in auto industry
The company is a leading exporter of aftermarket radiators to Europe, with a
growing presence in the North American, Middle Eastern, African and South
American markets. It has also started supplying OEMs in Europe. The company’s
performance was adversely affected because of the slowdown in global economy
in FY2013 with stagnant exports from the standalone business. However, in
FY2014 it has witnessed recovery as the global economies started showing
recovery signs. Also, there was a ~18.9% growth in the exports to `157cr (on
standalone basis).
The U.N. forecasts global economic growth of 3% in 2014 and 3.3% in 2015. The
advanced economies are gaining momentum and driving the pick-up in global
growth with investment and trade shooting up again. The US GDP growth is
projected to grow by 2.6% in 2014 and 3.5% in 2015; Euro area is expected to
witness positive growth after three years of contraction, with a GDP growth of 1.2%
in 2014 and 1.7% in 2015. The GDP growth for the BRIICS is projected at 5.3%
and 5.7% in 2014 & 2015 respectively.
We believe that the recovery in the major economies and revival in investment and
falling level of unemployment will aid the recovery path for the global automobile
industry and thereby the auto component industry. The IHS Automotive predicts
global auto sales to reach 85mn in 2014 and steadily increase to 100mn in 2018
from 82.8mn in 2013. We expect the improvement in the global auto industry to
provide huge potential to the company, including huge export potential from the
standalone business, in the global auto component market.
Exhibit 1: Export trend on standalone basis
Exhibit 2: Total vehicle sales in major export markets
180
30.0
40
24.7
157
160
25.0
35
132
18.9
140
135
128
131
20.0
30
120
108
15.0
25
100
7.5
10.0
20
80
2.3
0.8
5.0
15
60
0.0
10
40
20
(5.0)
5
0
(10.0)
0
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014E
2007
2008
2009
2010
2011
2012
2013
Export Sales
yoy growth (RHS)
Europe America Asia/Oceania/Middle East
Source: Company, Angel Research
Source: OICA, Angel Research
Expected improvement in domestic CV industry to aid radiator demand
The company has a domestic installed capacity of
2.1mn aluminum and
copper-brass automotive heat exchangers and
4,000 large industrial heat
exchangers per annum (presently producing ~1000 varieties of heat exchangers,
ie radiators, charge air coolers and oil coolers).
July 1, 2014
2
Banco Products (India) | Initiating Coverage
The CV industry contributed ~80.0% to the company’s domestic standalone sales
in FY2014. According to ACMA, the production in domestic CV industry grew at a
CAGR of 22% over FY2008-12 and is expected to grow at a CAGR of 11% over
FY2012-21E to 23.5lakh units. Also, the new government’s thrust is on higher
infrastructure investment and development. We believe availability of infrastructure
provides good prospects for growth in CVs across the country, thus providing
Banco a strong growth opportunity domestically. In addition, it enjoys diverse
clients, which includes non-automotive companies in infrastructure, railways and
farm equipment segments. The major customers include companies like Tata
Motors, Ashok Leyland, Mahindra & Mahindra, Koel, BEML, TAFE, JCB and Indian
Railways. On the back of expected growth in domestic CV industry, we expect the
revenue for the standalone business to grow at a CAGR of 11.0% over FY2014-
16E to `551cr in FY2016E.
Exhibit 3: Domestic and Export sales break up
Exhibit 4: Indian CV industry
100.0
100
50.0
35.8
90.0
90
32.8
40.0
80.0
80
21.1
30.0
70.0
70
20.0
60.0
60
50.0
50
10.0
40.0
40
0.0
42
(8.8)
4.8
30
30.0
(16.0)
(10.0)
20.0
20
(23.5)
10
(20.0)
10.0
55
57
75
91
83
70
0
(30.0)
0.0
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
Export Sales
Domestic sales
CV Production
yoy growth
Source: Company, Angel Research
Source: Company, Angel Research
Exit from Lake Cement leads focus on the core business
As a part of diversification, Banco had acquired a 51% stake in Lake Cement,
Tanzania, in July 2010. The project included limestone-mining, clinker & cement
production and packing. However, in order to continue focus on the core business,
Banco, with its subsidiaries (Banco Products sold its entire 3,721 equity shares for
US$0.4mn and its subsidiaries - Lake Minerals (Mauritius) Ltd and Nederlandse
Radiateuren Banco Products divested their combined 1,74,875 equity shares for
US$17.3mn) has exited the venture by selling off the entire stake for US$17.7mn,
an approximate premium of 52% (as per the media reports). We believe that
exiting the unrelated diversification will help the company in strengthening the core
segments.
No further unrelated diversification
The company’s performance was adversely affected post the unrelated
diversification in the cement business. The stock price plunged sharply after the
acquisition of stake in Lake Cement. The company has now taken a step to
consolidate its presence in the auto related segment by selling off the entire stake
in the Lake Cement. It is expected that Banco will use the proceeds from the sale of
Lake Cement (US$17.7mn) for auto component related acquisitions in Europe as it
now plans to diversify only in the core business. We believe that this will further
strengthen the company’s presence in the global market.
July 1, 2014
3
Banco Products (India) | Initiating Coverage
Consolidated Financials
Exhibit 5: Revenue and profit break up
(in ` cr)
FY2014E
FY2015E
FY2016E
Revenue
Banco Gaskets (India)
100
110
123
Kilimanjaro Biochem
55
61
68
Nederlandse Radiateuren Fabriek BV
555
611
702
Standalone
447
492
551
Less: Inter-company
(5)
(5)
(13)
Consolidated
1,162
1,278
1,457
PAT
Banco Gaskets (India)
4
5
6
Kilimanjaro Biochem
6
7
9
Nederlandse Radiateuren Fabriek BV
47
59
72
Standalone
66
75
88
Less: Inter-company
34
34
39
Consolidated
90
111
136
Source: Angel Research
Recovery in Global economy & domestic CV industry to aid growth
The company is a leading exporter of aftermarket radiators to Europe, with a
growing presence in the America, Middle East and African markets. The global
economy which witnessed couple of difficult years is now showing recovery signs
(U.N. forecasts global economic growth of 3% in 2014 and 3.3% in 2015). Also,
the IHS Automotive predicts global auto sales to reach 85mn in 2014 and 100mn
in 2018 from 82.8mn in 2013.
The current installed capacity of the company is 2.1mn aluminum and copper-
brass automotive heat exchangers and 4,000 large industrial heat exchangers per
annum with ~1,000 varieties. On the back of recovery trends visible in the
global economy and domestic CV industry and the company’s strong relationship
with its customers, we expect the revenue for the company to grow at a CAGR of
12.0% over FY2014-16E to `1,457cr.
Exhibit 6: Improving CV sales to drive volume
Exhibit 7: EBITDA margin to improve by 98bps over FY2014-16E
1,600
89.1
100
250
15.2
16
14.8
90
1,400
14.2
15
80
200
1,200
14
70
12.7
1,000
60
13
150
11.9
800
50
11.4
12
40
100
600
11
30
400
16.8
13.4
14.0
10
10.0
20
50
200
9
0.5
10
0
0
0
8
FY2011
FY2012
FY2013
FY2014
FY2015E FY2016E
FY2011
FY2012
FY2013
FY2014
FY2015E FY2016E
Revenue (LHS)
Revenue growth (RHS)
EBITDA (LHS)
EBITDA Margin (RHS)
Source: Company, Angel Research
Source: Company, Angel Research
July 1, 2014
4
Banco Products (India) | Initiating Coverage
On the back of improved demand scenario and stabilized raw material costs, the
operating margin is expected to improve by 98bp over FY2014-16E at 15.2%. We
expect the company to reduce its debt to `111cr and `88cr in FY2015E and
FY2016E respectively, leading to a reduction in interest cost going forward. Also,
the company will have cash of `80cr and `107cr in FY2015E and FY2016E
respectively unless it plans out any expected acquisition. Consequently, we expect
the profit to grow at a CAGR of 23.2% over FY2014-16E to `136cr.
Exhibit 8: PATM to improve going forward...
Exhibit 9: ... leading to improvement in return ratios
14.8
15.2
25.0
23.1
16.0
14.2
20.7
20.9
12.7
19.4
19.2
14.0
11.9
20.0
11.4
12.0
19.8
14.5
19.6
9.4
18.7
10.0
8.7
15.0
18.1
7.5
7.7
16.9
7.1
8.0
5.8
13.2
10.0
6.0
4.0
5.0
2.0
0.0
0.0
FY2011
FY2012
FY2013
FY2014
FY2015E FY2016E
FY2011
FY2012
FY2013
FY2014
FY2015E FY2016E
EBITDAM
PATM
ROCE (Pre-tax)
ROE
Source: Company, Angel Research
Source: Company, Angel Research
Outlook and valuation: We expect Banco to register a revenue CAGR of 12.0%
over FY2014-16E to `1,457cr with an operating margin of 15.2% in FY2016E.
The profit is expected to grow at a CAGR of 23.2% over the same period to `136cr
in FY2016E. At the CMP, the company is trading at a PE of 6.3x FY2016E
earnings.
On account of growth potential with revival in CV industry, and potential
acquisition plans, we initiate coverage on the company with a Buy
recommendation with a target price of `172 on a target PE of 9.0x FY2016E
earnings.
Exhibit 10: One-year forward P/E band
180
160
140
120
100
80
60
40
20
0
Price (`)
4x
6x
8x
10x
Source: Company, Angel Research
July 1, 2014
5
Banco Products (India) | Initiating Coverage
Concerns
Continued slowdown in CV industry: The company earns its major revenue from
the CV industry, including the ones in the US and Europe. Any prolonged
slowdown in these economies can adversely affect the company’s performance.
Adverse movement in currency: Exports contribute ~30% to total standalone sales,
so any appreciation in domestic currency may adversely affect the company.
Fluctuations in raw material price: Any substantial fluctuation in the price of copper
and aluminum can lead to margin compression for the company as they form
22.1% and 41.4% of raw material consumption respectively.
Company background
Banco is a manufacturer of radiators and gaskets that have applications in
automobiles, oil engines, compressors and locomotives. The company has a
technical collaboration with Japan Metal Gasket, Japan for manufacture of
gaskets. It has five manufacturing units, three in Baroda and one assembly plant at
Jamshedpur for supply to Tata Motors and one at Rudrapur. In the domestic
market, original equipment manufacturer (OEM) sales account for 80-85% and the
rest come from the replacement market. The company enjoys diverse clients, which
includes non-automotive companies in infrastructure, railways and farm equipment
segments. The major customers include companies like Tata Motors, Ashok
Leyland, Mahindra & Mahindra, Koel, BEML, TAFE, JCB and Indian Railways.
The company has three subsidiaries:
a) Banco Gaskets (India): a wholly owned subsidiary of the company with
effect from 31st March, 2012 involved in the manufacture of gaskets.
b) Kilimanjaro Biochem, Tanzania: a wholly owned subsidiary of the
company with effect from 1st February, 2011 involved in the manufacture
of potable alcohol in Tanzania.
c) Nederlandse Radiateuren Fabriek BV, Netherlands: a wholly owned
subsidiary of the company with effect from 23rd February, 2010 engaged
in the business of manufacturing and distribution of heat transfer
products.
Products
Cooling Systems/ radiators
Radiators are used as heat exchangers to transfer excess heat away from engine
and release it into environment. Banco is one of the leading manufacturers and
suppliers of original equipment for commercial vehicles, passenger vehicles and
industrial products with a total installed capacity of 2.1mn aluminum and copper-
brass automotive heat exchangers and 4,000 large industrial heat exchangers per
annum. The company has also started supplying OEMs in Europe. It is also India’s
leading exporter of aftermarket radiators to Europe, with a growing presence in
the North American, Middle Eastern, African and South American markets.
Application: Compressors, Motorcycles/ Micro cars, On highways bus/ trucks, Off
highway mining trucks, Tractor & forest machinery, Construction/ handling
equipment, Traction locomotives, Gensets, Wind mills, SUVs etc.
July 1, 2014
6
Banco Products (India) | Initiating Coverage
Gaskets
Gaskets are used for sealing two metal surfaces to prevent loss of pressure or heat.
Banco is among the leading manufacturers and development partners to OEM
companies, manufacturing diesel and petrol engines in India who are affiliated or
are subsidiaries of leading multinational companies from Europe, Japan and the
USA. The company has a technical collaboration with Japan Metal Gasket, Japan
for manufacture of gaskets.
Application: Heavy duty turbocharged diesel and CNG engines for buses and
trucks, Agricultural and Forestry equipment, High horsepower traction
Locomotives, Compressors, Smaller diesel engines for power generation
equipment, Passenger car petrol and diesel engines, Industrial gaskets for
chemical and process industries, motorcycles and scooters, water pumps and fuel
injection equipment.
The company had transferred the Gasket Manufacturing Division with its
manufacturing facility at Anakhi for `46cr by way of slump sale to Banco Gaskets
(India) Ltd (BGIL), a wholly owned subsidiary of the company with effect from 31st
March, 2012.
July 1, 2014
7
Banco Products (India) | Initiating Coverage
Profit and loss statement (Consolidated)
Y/E Mar. (` cr)
FY2012 FY2013 FY2014
FY2015E
FY2016E
Total operating income
1,019
1,024
1,162
1,278
1,457
% chg
16.8
0.5
13.4
10.0
14.0
Net Raw Materials
554
536
583
634
717
% chg
20.4
(3.3)
8.9
8.7
13.2
Power and Fuel
13
19
22
24
28
% chg
23.5
42.4
16.3
10.0
14.0
Personnel
124
138
158
173
198
% chg
12.5
10.7
14.4
10.0
14.0
Other
206
215
234
257
293
% chg
14.4
4.7
8.6
10.0
14.0
Total Expenditure
897
908
997
1089
1236
EBITDA
122
116
165
189
221
% chg
9.6
(4.3)
41.6
14.7
16.8
(% of Net Sales)
11.9
11.4
14.2
14.8
15.2
Depreciation
21
29
32
34
37
EBIT
101
88
132
155
184
% chg
9.6
(13.1)
51.3
16.9
19.0
(% of Net Sales)
9.9
8.5
11.4
12.1
12.6
Interest & other Charges
9
13
19
8
7
Other Income
10
8
9
10
15
(% of Net Sales)
1.0
0.8
0.7
0.8
1.0
Recurring PBT
92
74
113
146
178
% chg
11.4
(19.5)
52.5
29.5
21.2
PBT (reported)
102
83
122
157
192
Tax
26
21
32
45
56
(% of PBT)
25.1
25.8
26.2
29.0
29.0
PAT (reported)
77
61
90
111
136
Extraordinary Expense/(Inc.)
4
2
0
0
0
ADJ. PAT
72
59
90
111
136
% chg
10.4
(18.5)
52.3
23.8
22.6
(% of Net Sales)
7.1
5.8
7.7
8.7
9.4
Basic EPS (`)
10.1
8.2
12.6
15.5
19.1
Fully Diluted EPS (`)
10.1
8.2
12.6
15.5
19.1
% chg
10.4
(18.5)
52.3
23.8
22.6
Dividend
18
13
14
14
14
July 1, 2014
8
Banco Products (India) | Initiating Coverage
Balance sheet (Consolidated)
Y/E Mar. (` cr)
FY2012
FY2013
FY2014
FY2015E
FY2016E
SOURCES OF FUNDS
Equity Share Capital
14
14
14
14
14
Reserves& Surplus
409
458
574
623
743
Shareholders’ Funds
423
472
589
637
757
Total Loans
130
175
138
111
88
Other Long Term Liabilities
-
0
0
0
0
Long Term Provisions
2
2
2
2
2
Deferred Tax (Net)
17
20
22
22
22
Total liabilities
572
670
752
772
870
APPLICATION OF FUNDS
Gross Block
478
562
612
648
694
Less: Acc. Depreciation
277
329
362
396
433
Net Block
201
232
250
252
261
Capital Work-in-Progress
3
9
6
13
15
Goodwill
-
-
-
-
-
Investments
39
63
71
-
-
Long Term Loans and adv.
27
60
71
77
87
Other Non-current asset
-
-
-
-
-
Current Assets
453
491
547
636
744
Cash
36
20
27
80
107
Loans & Advances
24
16
32
26
29
Inventory
215
262
275
307
353
Debtors
178
193
214
224
255
Other current assets
-
-
-
-
-
Current liabilities
151
184
193
206
237
Net Current Assets
301
307
354
431
507
Misc. Exp. not written off
-
-
-
-
-
Total Assets
572
670
752
772
870
July 1, 2014
9
Banco Products (India) | Initiating Coverage
Cash flow statement (Consolidated)
Y/E Mar. (` cr)
FY2012 FY2013
FY2014 FY2015E FY2016E
Profit before tax
102
83
122
157
192
Depreciation
21
29
32
34
37
Change in Working Capital
6
(22)
(40)
(23)
(50)
Direct taxes paid
(26)
(21)
(32)
(45)
(56)
Others
5
29
(9)
(10)
(15)
Cash Flow from Operations
109
97
73
112
108
(Inc.)/Dec. in Fixed Assets
(61)
(89)
(47)
(44)
(47)
(Inc.)/Dec. in Investments
(36)
(23)
(8)
71
-
(Incr)/Decr In LT loans & adv.
26
(32)
(11)
(6)
(11)
Others
(17)
41
54
(36)
15
Cash Flow from Investing
(88)
(104)
(13)
(14)
(43)
Issue of Equity
-
-
-
-
-
Inc./(Dec.) in loans
3
45
(37)
(28)
(22)
Dividend Paid (Incl. Tax)
(21)
(15)
(17)
(17)
(17)
Others
5
(40)
-
-
-
Cash Flow from Financing
(14)
(10)
(54)
(44)
(39)
Inc./(Dec.) in Cash
7
(16)
7
54
26
Opening Cash balances
29
36
20
27
80
Closing Cash balances
36
20
27
80
107
July 1, 2014
10
Banco Products (India) | Initiating Coverage
Key ratios (Consolidated)
Y/E Mar.
FY2012
FY2013
FY2014
FY2015E
FY2016E
Valuation Ratio (x)
P/E (on FDEPS)
11.9
14.6
9.6
7.7
6.3
P/CEPS
9.2
9.8
7.0
5.9
5.0
P/BV
2.0
1.8
1.5
1.3
1.1
EV/Net sales
0.9
0.9
0.8
0.7
0.6
EV/EBITDA
7.5
8.2
5.5
4.7
3.8
EV / Total Assets
1.6
1.5
1.2
1.2
1.0
Per Share Data (`)
EPS (Basic)
10.1
8.2
12.6
15.5
19.1
EPS (fully diluted)
10.1
8.2
12.6
15.5
19.1
Cash EPS
13.1
12.3
17.1
20.3
24.2
DPS
2.5
1.8
2.0
2.0
2.0
Book Value
59.2
66.1
82.3
89.1
105.8
DuPont Analysis
EBIT margin
9.9
8.5
11.4
12.1
12.6
Tax retention ratio
0.7
0.7
0.7
0.7
0.7
Asset turnover (x)
2.2
2.0
2.0
2.0
2.1
ROIC (Post-tax)
16.3
12.5
16.5
17.1
18.9
Cost of Debt (Post Tax)
4.9
6.5
9.1
4.8
4.8
Leverage (x)
0.1
0.2
0.1
0.0
(0.0)
Operating ROE
17.8
13.7
17.0
17.7
18.6
Returns (%)
ROCE (Pre-tax)
19.4
14.5
19.2
20.9
23.1
Angel ROIC (Pre-tax)
21.7
16.9
22.4
24.1
26.6
ROE
18.7
13.2
16.9
18.1
19.6
Turnover ratios (x)
Asset TO (Gross Block)
2.3
2.0
2.0
2.0
2.2
Inventory / Net sales (days)
75
85
84
83
83
Receivables (days)
62
66
64
64
64
Payables (days)
57
67
69
69
70
WC cycle (ex-cash) (days)
96
98
97
97
94
Solvency ratios (x)
Net debt to equity
0.1
0.2
0.1
0.0
(0.0)
Net debt to EBITDA
0.5
0.8
0.2
0.2
(0.1)
Int. Coverage (EBIT/ Int.)
11.8
6.6
6.8
18.4
27.4
July 1, 2014
11
Banco Products (India) | Initiating Coverage
Research Team Tel: 022 - 39357800
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
Banco Products (India)
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%)
July 1, 2014
12
Banco Products (India) | Initiating Coverage
6th Floor, Ackruti Star, Central Road, MIDC, Andheri (E), Mumbai- 400 093. Tel: (022) 39357800
Research Team
Fundamental:
Sarabjit Kour Nangra
VP-Research, Pharmaceutical
Vaibhav Agrawal
VP-Research, Banking
Twinkle Gosar
Analyst
Tejashwini Kumari
Analyst
Tejas Vahalia
Research Editor
Technicals and Derivatives:
Siddarth Bhamre
Head - Technical & Derivatives
Sameet Chavan
Technical Analyst
Nagesh Arekar
Executive
Sneha Seth
Associates (Derivatives)
Institutional Sales Team:
Mayuresh Joshi
VP - Institutional Sales
Meenakshi Chavan
Dealer
Gaurang Tisani
Dealer
Production Team:
Dilip Patel
Production Incharge
CSO & Registered Office: G-1, Ackruti Trade Centre, Road No. 7, MIDC, Andheri (E), Mumbai - 93. Tel: (022) 3083 7700. Angel Broking Pvt. Ltd: BSE Cash: INB010996539 / BSE F&O: INF010996539, CDSL Regn. No.: IN - DP - CDSL - 234 - 2004, PMS Regn. Code: PM/INP000001546, NSE Cash: INB231279838 /
NSE F&O: INF231279838 / NSE Currency: INE231279838, MCX Stock Exchange Ltd: INE261279838 / Member ID: 10500. Angel Commodities Broking (P) Ltd.: MCX Member ID: 12685 / FMC Regn. No.: MCX / TCM / CORP / 0037 NCDEX: Member ID 00220 / FMC Regn. No.: NCDEX / TCM / CORP / 0302.
July 1, 2014
13
