10 September 2013
Update | Sector: Cement
Shree Cement
BSE Sensex
19,997
S&P CNX
5,897
CMP: INR3,898
TP: INR5,400
Buy
Sustenance of competitive advantages…
…attainment of critical mass, makes strong case for re-rating
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range
(INR)12 Rel. Per
1, 6,
(%)
M.Cap. (INR b)
M.Cap. (USD b)
SRCM IN
34.8
5,210/3,315
-5/-13/3
135.8
2.1
Shree Cement (SRCM) has been generating absolute EBITDA similar to
ACC/Ambuja Cements (ACEM), on ~60% of their volumes.
Cost leadership, superior profitability and consistent periodic scale-up in market
share have been the key attributable factors, along with visibility of sustenance.
New Greenfield expansion to help diversify market mix to east and central
Attained critical mass for funding future growth from internal accruals.
A strong case for next leg of re-rating. Buy with a SOTP based target price of
INR5,400 (38% upside).
Financial Snapshot (INR Billion)
Y/E March 2013 2014E 2015E
Sales
55.7
60.5
70.0
EBITDA
15.4
15.8
19.8
NP
10.0
7.4
280.7
-10.9
17.7
20.7
13.9
7.6
74
9.9
365.3
30.2
20.2
24.2
10.7
6.2
67
Adj EPS (INR) 314.9
EPS Gr. (%)
14.8
RoE (%)
RoCE (%)
P/E (x)
30.6
28.1
12.4
Superior operating performance, similar absolute EBITDA
SRCM would be generating absolute EBITDA of INR15.8b (cement EBITDA of
INR13.3b), which is comparable to that of ACC/ACEM (INR15/18b in FY14E), and
much higher than (1.6x) the next largest player (Madras Cement) in mid-cap
basket. This, coupled with superior operating performances, strengthening of
market mix, scale-up in size and strong balance sheet make a strong case for
further re-rating, at par with large caps. Historically, ACEM had seen similar re-
rating during FY02-06, based on scale-up in operations.
Differentiated expansion strategy help attain critical mass
SRCM demonstrated a differentiated expansion strategy, with regular capacity
additions at higher frequency but smaller magnitudes. The strategy enabled it
to (1) expand systematically as per market demand, (2) faster project
turnaround, quick stabilization and (3) drive growth with minimum pressure on
balance sheet. The Chhattisgarh Greenfield expansion of 2.5mt would take total
capacity to 21.6mt by June 2015. We believe SRCM has attained critical mass as
it can grow capacity by 10-12% annually based on sustainable OCF.
EV/EBITDA(x 7.9
)
EV/Ton(USD) 91
Shareholding pattern (% )
As on
Jun-13 Mar-13 Jun-12
Promoter
Dom. Inst
Foreign
Others
64.8
5.9
18.9
10.4
64.8
5.6
18.6
11.0
64.8
5.3
18.7
11.2
Market mix to improve, operating advantage to be maintained
Chhattisgarh expansion is expected to aid diversification in market mix by
entering eastern region of India. Cost leadership and superior profitability
would continue to persist over medium term. We estimate SRCM to generate
cash flow from operations of ~INR61b over FY14E-16E v/s capex need of
~INR33b, and hence drive growth without impacting balance sheet strength.
Stock Performance (1-year)
5,400
4,400
3,400
2,400
1,400
400
Shree Cement
Sensex - Rebased
Strong case for re-rating, upgrade EV/EBITDA multiple to 9x
Historically, SRCM’s valuation discount to large caps has declined only in a
sectoral down-cycle. But current positioning makes a strong case for next leg of
re-rating. We value SRCM at 9x FY15E Cement EV/EBITDA and DCF for power
business, translating to a target price of INR5,400 (38% upside). Lower payout
and prolonged delay in volume recovery could be key deterrents for re-rating.
Maintain
Buy.
Jinesh Gandhi
(Jinesh@MotilalOswal.com); +91 22 3982 5416
Sandipan Pal
(Sandipan.Pal@MotilalOswal.com); +91 22 3982 5436
Investors are advised to refer through disclosures made at the end of the Research Report.

Shree Cement
Entry into elite club…
…to trigger next leg of re-rating
SRCM has been generating absolute EBITDA in the zone of ACC/ACEM.
ACEM had witnessed similar re-rating during FY02-06, led by scale-up in operations.
EBITDA in tier I zone
SRCM has been generating absolute EBITDA of INR15.8b (cement EBITDA of
INR13.3b), which is largely similar to ACC/ACEM (INR15/18b in FY14E), and much
higher than (>1.6x) the second largest cement player in mid-cap basket (Madras
Cement). Historically, SRCM’s valuation discount to large caps declined only in a
sectoral down-cycle, due to its cost advantage induced profit resilience. However,
with its absolute operating profit now being at par with tier I players, it makes a
strong case for the company to secure a permanent position in tier I bracket and
subsequent re-rating of valuation multiple.
Trend in absolute EBITDA (v/s ACC/ACEM and next largest mid cap)
ACC
ACEM
20.5
17.6
19.2
6.5
8.5
16.2
5.9
5.9
FY07
8.6
FY08
9.0
FY09
13.9
FY10
8.3
FY11
13.1
FY12
12.9
FY13
13.3
FY14E
17.2
FY15E
17.3
8.6
9.5
SCRM (Pure cement)
25.3
18.2
18.7
15.0
SCRM (incl Power)
24.7
24.1
19.8
Periodic scale-up in capacity
and sustaining cost
advantage led SRCM to post
absolute EBITDA at par with
ACC/ACEM, despite ~45%
lower volume.
18.1
19.4
13.9
19.7
18.4
15.8
15.4
15.1
21.4
16.9
15.5
8.8
2.2
1.7
6.2 1.8 5.4 2.2
FY05
FY06
Source: Company, MOSL
Consistency in growth and cost
leadership led to EBITDA
convergence
The primary reasons attributable to operational outperformance and a strong leap
among large cap players are: (1) consistent capacity addition, (2) differentiated fuel
mix (pet and imported coal) and advantage in energy cost/ton, (3) lower fixed cost
due to operating leverage and single location plant.
Comparative attractiveness of SRCM among tier I cement manufacturers
FY15
Capacity (MT)
ACC
ACEM
Ultratech
SRCM
30.7
29.6
62.1
21.6
FY15E
EBITDA
(INR/ton)
799
1,003
1,273
1,350
FY15E
EV/EBITDA (x)
FY15E
EV/ton (USD)
5.4
50.0
8.8
106.9
6.3
120.0
5.2
67.0
Source: Company, MOSL
10 September 2013
2

Shree Cement
(1) SRCM posted 25% CAGR in capacity under control over FY05-13 (mt)
SRCM demonstrated
gradual scale-up in
operations by adding
capacity at regular
frequency, which has been
in tandem with demand
growth and gain in
market share.
19.1
16.3
12
4
5.6
7
9
13.2
13.5
21.6
21.6
2.6
2.6
2.8
Source: Company, MOSL
(2) SRCM’s energy cost (INR/ton) was lower due to superior power/fuel usage efficiency
Lower energy cost was due
to
(1)
100% utilization of
captive power,
(2)
lower
electricity consumption per
unit of cement,
(3)
differentiated fuel mix (pet
and imported coal),
(4)
flexi
fuel plant coupled with
superior fuel usage
efficiency and
(5)
benefit of
softening pet coke price.
ACC
ACEM
Ultratech
SCRM
FY09
FY10
FY11
FY12
FY13
Source: Company, MOSL
(3) Low fixed cost (INR/ton) is due to single location plant…
…and higher utilization (%) leads to better operating leverage
Source: Company, MOSL
Source: Company, MOSL
10 September 2013
3

Shree Cement
ACEM deciphered parallel evidence
Historically, ACEM witnessed similar re-rating against ACC during FY02-06 due to
similar (rather higher) absolute EBITDA on a consistent basis, albeit having much
lower capacity. Over this period, ACEM demonstrated superior profitability and a
steady scale-up in capacity, thus driving significant re-rating between FY02-08.
ACEM’s consistent ramp-up in capacity (mt)…
…coupled with superior profitability (INR EBITDA/ton) …
Source: Company, MOSL
Source: Company, MOSL
…resulted in EBITDA of ACEM being similar to ACC (INR b)…
…leading to steady re-rating for ACEM’s EV/EBITDA (x)
Source: Company, MOSL
Source: Company, MOSL
10 September 2013
4

Shree Cement
Unique expansion strategy
Faster turnaround, steady growth without impacting balance sheet
SRCM saw a differentiated expansion strategy, compared to peers, with regular
addition at higher frequency but at smaller magnitudes.
The strategy enabled it to expand systematically as per market demand, along with
faster project turnaround, quick stabilization and lower pressure on balance sheet.
We note majority of its expansion has been aimed at immediate gain in market share,
instead of speculation over future growth.
Systematic expansion derives benefits
Superior resource
management and fast
execution at single location
plant were key to better
utilization and reduction in
fixed cost.
SRCM saw a differentiated expansion strategy, with regular capacity additions at
higher frequency but smaller magnitudes in single location plant. This is unique
compared to most peers who focused on large expansions (>=3mt), at larger
intervals, to maintain economies of scale. Hence, SRCM’s strategy had its own
benefits which resulted in (1) faster project turnaround, (2) quick stabilization of
capacity, (3) resultant healthy utilizations and lower pressure on marketing team,
and (4) limited impact on balance sheet.
SRCM depicted a strong track record of superior project commissioning and
quicker capacity stabilization. It set up the latest 1mt clinker capacity (kiln 7-8) in a
record period of 367/330 days, which is almost 2x faster than the industry average
timeline of ~600 plus days. Its execution prowess is visible in the commissioning of
power plants too, where company is managing almost 30% time savings, compared
to industry benchmarks.
Focus on operational issues like minimizing mechanical breakdown time at kilns
ensured higher uninterrupted running period (breakdown at kiln 2 happened after
298 days v/s normal 180 days), leading to superior utilizations and hence better
operating leverage.
Smaller expansions at regular intervals…
Beginning capacity
Addition
…and fast project execution led to…
Source: Company, MOSL
Source: Company, MOSL
10 September 2013
5

Shree Cement
…to above industry volume CAGR of 18% over FY07-12
Volume growth (%)
105 109 110
Utilization (%)
Capacity market share witnessed a sharp uptrend (%)
Cap. Mkt Share (%)
Vol. Mkt Share (%)
94 94
90
87
85
82 88
78
76 70
68
51
4
8
7
51 34 28 21
0
19
2
8
9
28
Source: Company, MOSL
Source: Company, MOSL
Majority of SRCM’s
expansion has been aimed
at immediate gain in market
share, instead of
speculation over future
growth.
Market share gain in tandem with expansion
SRCM’s expansion strategy enabled it to grow as per market demand. We note
majority of its expansion has been aimed at immediate gain in market share, instead
of speculation over future growth. It consistently operated 85%+ utilizations till
FY12, before growth moderated in FY13 (utilization down to 76%), driven by sectoral
slowdown. Company enjoys 19% market share in North India and leads in key states
like Rajasthan (20%), Delhi (18%) and Haryana (19%).
Consistent expansion plans to take capacity to 21.6mt by FY15E…
Amid broad-based demand weakness, we expect SRCM to witness a ~8% volume
CAGR (v/s 6.2% for MOSL coverage) over FY13-15E, leading to weaker utilizations on
the back of new capacity commencement. It commissioned line-9 with clinker
capacity of 2mt at its Rajasthan plant in Mar-13, while line-10 with a clinker capacity
and supporting split grinding units are expected to be commissioned by June 2014.
SRCM has also started work on setting up a Greenfield plant in Chhattisgarh, with
total capacity of 2.5mt commissioning by June 2015, with total capex of ~INR11b
(excl CPP). This will take the total capacity to ~21.6mt by June 2015 (~19mt by June
2014).
Comparative capacity scale-up (mt)
ACC
ACEM
31
19
16
20
16
6
22
19
23
19
9
26
25
25
SRCM
31
28
31
28
16
31
29
19
31
30
22
34
30
22
Company is well-placed for
the next leg of growth, with
a strong balance sheet (net
cash of INR14.4b+ as in June
2013) and the Greenfield
expansion at Chhattisgarh
18
13
3
FY05
12
13
14
4
7
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14E FY15E FY16E
Source: Company, MOSL
10 September 2013
6

Shree Cement
Smaller periodic expansion
strategy ensured that
SRCM’s balance sheet
strength did not dilute
significantly.
…without impacting balance sheet
Smaller periodic expansions did not let SRCM’s balance sheet strength to dilute
significantly in the past. We believe this will continue going forward too. We
estimate it to generate cash flow from operations of ~INR61b over FY14E-16E and
net cash of ~INR14.4b (as in June 2013), v/s a capex need of INR33b (including
ongoing and planned expansions). SRCM would be funding these capacity
expansions through internal accruals, without any pressure on the balance sheet.
Strong operating cashflows, measured capex drives strong FCF generation (INR b)…
30
15
0
-15
-30
OCF
Capex
FCF
Source: Company, MOSL
…enabling SRCM to become net cash company
Source: Company, MOSL
10 September 2013
7

Shree Cement
Critical mass to enable long term positioning
Market mix to improve, operating advantage to be maintained
SRCM attained critical mass to support growth from internal accruals.
Expansion to aid improvement in market mix.
Cost leadership, superior profitability and periodic scale-up in size have been the key
success factors in the past and would continue to persist over the medium term.
Attained critical mass to grow 10-12% from internal accruals
Chhattisgarh Greenfield expansion of 5mt would take the total capacity to ~24mt by
June 2016. We believe SRCM has attained critical mass as it can grow capacity by 10-
12% annually based on its sustainable operating cash flow (OCF). We estimate the
company will generate FCFE of INR13.2b in FY14E, which should enable 25-35% YoY
growth over FY14E-16E, and thus will ensure surplus cash to drive capex for the 2-
2.5mt of annual expansion (10-12% of existing capacity).
Current size of operations at threshold to drive self-funded expansion
OCF after interest & dividend (INR b)
18.3
13.2
5.8
22.5
16.3
FY12
FY13
FY14E
FY15E
FY16E
Source: Company, MOSL
Expansion to enrich market mix – a step towards wider regional presence
SRCM has been a regional player focused on North India (72% of volume) and 28%
from Central India, with grinding facilities at Roorkee (Uttarakhand). We expect the
commencement of split grinding unit (2mt) in Bihar and Greenfield capacity in
Chhattisgarh (5mt) to bolster its presence in East India from FY16 onwards. Based on
demand-supply dynamics, our medium term regional preference for North, East and
Central aligns with SRCM’s market mix. Expansion would ensure its future mix to a
wider geographical presence, compared to the present regional concentration.
Incremental demand (ID) and incremental supply (IS) decipher the regional
favorability over the medium term. This coupled with higher utilization (a key to
pricing power) makes North, Central and East India our preferred mix. Though
individually West remains healthy, easier inter-region movement from unfavorable
South market weakens the combined outlook.
10 September 2013
8

Shree Cement
Trend in North (mt, %)
Trend in Central (mt, %)
Source: Company, MOSL
Source: Company, MOSL
Trend in East (mt, %)
Trend in West (mt, %)
Source: Company, MOSL
Source: Company, MOSL
Trend in South (mt, %)
Trend in North-Central-East combined (mt, %)
Source: Company, MOSL
Source: Company, MOSL
Operating advantages to be maintained
Despite lower realizations (v/s peers), SRCM demonstrated operating edge and
superior profitability due to (1) efficient cost structure, especially in energy
consumption and power usage, (2) savings on freights, with lower lead distances,
and (3) lower fixed cost on account of single location plant. Key factors attributable
to cost efficiencies are:
Power efficiency:
SRCM’s cost leadership in power usage is attributable to (a)
100% utilization of captive power, (b) lower electricity consumption per unit of
coal. Company has installed capacity of 560mw, which is more than self-
9
10 September 2013

Shree Cement
sufficient to address 100% of internal requirement (~150mw), while surplus
power is available for merchant sales. SRCM enjoys one of the lowest power
consumptions per unit among peers (76units/t against industry average of 80-
90units/t) due to continuous initiatives to improve operating efficiencies.
One of the lowest power consumption per ton of cement (Kwh/t)
SRCM has healthy proportion of captive power (%)…
Source: Company, MOSL
Source: Company, MOSL
SRCM has shifted from pet
coke to imported coal for
power plants. It meets coal
requirements through
imports and sourcing from
local players (IOC, HPCL
Mittal, Essar Oil etc).
Fuel efficiency:
Though majority of the plants are capable of flexi fuel usage, it
has higher dependency on pet coke/imported coal for energy requirement.
While SRCM is highly susceptible to volatile imported coal prices (as even
domestic pet coke prices are benchmarked against landed cost of imported
coal), we believe over the short-to-medium term, company would be a key
beneficiary of downward structural trend in imported coal prices, which we
expect not to reverse over the near term due to lower demand from Europe.
Higher pet coke usage led to lower fuel usages as % of clinker
…leading to cheapest cost of power generation (INR/unit)
Source: Company, MOSL
Source: Company, MOSL
Proximity to market-led and competitive freight cost:
Periodical improvement
in market mix, well located grinding units and strong logistics management have
been the key to competitive freight cost enjoyed by SRCM. With higher road
transport mix (83%), we see limited impact of rail freight hike on the company.
With manufacturing units in East India, lead distance is expected to reduce as
the company would be able to service the Central and Eastern markets more
efficiently.
10 September 2013
10

Shree Cement
Despite lower cement realizations for SRCM (INR/ton)…
SRCM enjoys lower
realizations compared to
peers, which partly is
attributable to market mix
and strategy to attain faster
asset turn on periodic
expansion and new
markets.
FY11
ACC
ACEM
Ultratech
SRCM
JKLC
JKCE
FY12
FY13
FY14E
FY15E
Source: Company, MOSL
…SRCM’s cost leadership (INR/ton)…
ACC
ACEM
Ultratech
SRCM
JKLC
JKCE
Strong focus on operating
efficiencies led to SRCM’s
production cost at almost
15% discount to tier I
players.
FY11
FY12
FY13
FY14E
FY15E
Source: Company, MOSL
…drives superior profitability (INR EBITDA/ton)
ACC
ACEM
Ultratech
SRCM
JKLC
JKCE
Despite lower realizations,
SRCM demonstrated
superior profitability on
account of cost leadership.
FY11
FY12
FY13
FY14E
FY15E
Source: Company, MOSL
Cost advantage to sustain
Improvement in market mix and continuous initiatives is expected to maintain cost
efficiency aid visibility on sustenance of profitability. While expansion to newer
geographies may dilute the single location cost advantage or lead to higher freight
cost, a higher realization from change in market mix is expected to offset the same.
10 September 2013
11

Shree Cement
Continuous initiatives to maintain efficiency
Open wagon transportations led to freight cost discount
According to industry standards, covered wagons are considered ideal or perfect
option for cement/clinker transportation, as deterioration of quality and rain
damages are minimized. SRCM moved away from this practice and chose open
wagon transportation through which it gained the advantage of high discounts
offered by railways and reduced dependence on availability of closed rake
wagons. In spite of the limitations placed by railways last year on open wagons
and drastic reduction of discount offered from 45% to 20%, SRCM still managed
to dispatch 0.23mt.
Use of alternative raw materials aids cost savings
SRCM is using alternatives like pond ash and lignite-based ash instead of fly ash
and synthetic gypsum (increased in-house production) for mineral gypsum.
Sustained use of pond ash, which is an environmentally friendly and “free of
cost” alternative to dry fly ash, resulted in substituting the dry fly ash
requirement.
10 September 2013
12

Shree Cement
Strong case for next leg of re-rating
Upgrade target multiple to 9x; lower payout, a drag
Weakness in demand is expected to reflect in subdued pricing in FY14. Recovery in
demand, lower capacity addition and recovery in prices would be the key drivers of
sustainable improvement in operating performance.
SRCM is well-placed for the next leg of growth in cement business, with strong balance
sheet (net cash of over INR14.4b as in June 2013) and 5mt of new Greenfield
expansion plan, which would take the total capacity of ~21.6mt by June 2015. We
expect SRCM’s superior profitability to sustain, with cement EBITDA/ton of
INR1,177/ton in FY15E (v/s MOSL universe average of ~INR1,069).
Historically, SRCM’s valuation discount to large caps declined only in a sectoral down-
cycle as the company’s operating performance exhibits relative stability. But current
positioning makes a strong case for next leg of re-rating.
The stock trades at 13.9x/10.7x FY14E/FY15E EPS, 7.6x/6.2x EV/EBITDA and
USD67/ton FY15E (adjusting for merchant power assets of ~400mw). We value SRCM
at 9x FY15E Cement EV/EBITDA and DCF for power business, translating to a target
price of INR5,400 (38% upside).
Company’s lower payout and liquidity remain key deterrents for re-rating.
1-year forward EV/EBITDA (x) trend
SRCM
12.0
9.0
6.0
3.0
0.0
FY07
FY08
FY09
FY10
FY11
FY12
FY13
YTD FY14
Large cap
Midcap
Outperformance led to
convergence in valuations
with large cap universe.
Source: Company, MOSL
Trend in EV/EBITDA (x) and SRCM‘s discount to multiple with large caps (%)
ACC
ACEM
Ultratech
SRCM
Disc to large cap (RHS)
60
45
30
15
0
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
YTD
FY14
Historically, discount to
large cap valuation
declined in a sectoral down-
cycle, as SRCM’s operating
performance exhibits
relative stability.
12.0
9.0
6.0
3.0
0.0
Source: Company, MOSL
10 September 2013
13

Shree Cement
Trend in EV/EBITDA (x)
12
9
6
3
0
4.2
0.8
EV/EBDITA(x)
9.1
4.5
Peak(x)
Avg(x)
Median(x)
Min(x)
Source: Company, MOSL
Trend in EV/ton (USD) and SRCM‘s discount to multiple with large caps (%)
225
175
125
75
25
-25
64
-11
61
EV/ton (US$)
Max
180
Avg
Min
Source: Company, MOSL
SRCM - Sum of the parts valuations
INR m
Cement business
Merchant Power
Total EV
Less: Net Debt
Equity Value
Fair Value (INR/share)
EV/Ton at TP (USD)
Parameter
EV/EBITDA
DCF
Factor
9
@ 15% WACC
FY14
FY15
119,959
155,110
21,284
18,771
141,243
173,881
-15,607
-13,950
156,851
187,831
4,502
5,400
98
112
Source: Company, MOSL
SRCM’s lower payout could be a drag against re-rating (%)
Dividend yield (%)
Source: Company, MOSL
Source: Company, MOSL
10 September 2013
14

Shree Cement
Financials and valuation
10 September 2013
15

Shree Cement
Financials and valuation
10 September 2013
16

Shree Cement
NOTES
10 September 2013
17

Disclosures
Shree Cement
This report is for personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. This research report does not constitute an offer, invitation or
inducement to invest in securities or other investments and Motilal Oswal Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not for public distribution
and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form.
Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt MOSt or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSt or any of its affiliates or employees responsible for any such misuse and further agrees
to hold MOSt or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays.
The information contained herein is based on publicly available data or other sources believed to be reliable. While we would endeavour to update the information herein on reasonable basis, MOSt and/or
its affiliates are under no obligation to update the information. Also there may be regulatory, compliance, or other reasons that may prevent MOSt and/or its affiliates from doing so. MOSt or any of its
affiliates or employees shall not be in any way responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. MOSt or any
of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of
merchantability, fitness for a particular purpose, and non-infringement. The recipients of this report should rely on their own investigations.
This report is intended for distribution to institutional investors. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision
based on this report or for any necessary explanation of its contents.
MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise in the securities mentioned in this report. To enhance transparency, MOSt has incorporated a Disclosure of
Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report.
Disclosure of Interest Statement
1. Analyst ownership of the stock
2. Group/Directors ownership of the stock
3. Broking relationship with company covered
4. Investment Banking relationship with company covered
SHREE CEMENT
No
No
No
No
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is,
or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The research analysts, strategists, or research associates principally
responsible for preparation of MOSt research receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues.
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary
to law, regulation or which would subject MOSt & its group companies to registration or licensing requirements within such jurisdictions.
Regional Disclosures (outside India)
This report is intended for distribution only to persons having professional experience in matters relating to investments as described in Article 19 of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (referred to as "investment professionals"). This document must not be acted on or relied on by persons who are not investment professionals. Any investment or investment activity
to which this document relates is only available to investment professionals and will be engaged in only with such persons.
For U.K.
Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United
States. In addition MOSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under
applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services
described herein are not available to or intended for U.S. persons.
This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major
institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only
available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange
Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the
U.S., MOSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this
report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-
dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a
research analyst account.
For U.S.
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial
Advisors Regulations and is a subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed
in Singapore to accredited investors, as defined in the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time.
In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Kadambari Balachandran
Email : kadambari.balachandran@motilaloswal.com
Contact: (+65) 68189233 / 65249115
Office address: 21 (Suite 31), 16 Collyer Quay, Singapore 049318
For Singapore
Motilal Oswal Securities Ltd
10 September 2013
Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com
18