Monthly Communiqué May 2014

Dear Investors and my dear Advisor friends; I have been writing to you about our investment philosophy of BUY RIGHT : SIT TIGHT which we follow so as to manage your money in a disciplined; process oriented manner targeted at not just generating returns but for creating wealth. This month, I would like elaborate a bit about this and explain to you why in the Indian context this is critical to follow over the next few years. Wealth Creation by investing in equity requires two traits 1. The ability to identify good companies and 2. The discipline to stay invested over a long period of time in order to realize the full growth potential of the stock. Good quality companies are in business for decades but investors change their views about these companies every year, every quarter, every month and sometimes every day! While many investors get the first part of identifying good stocks, hardly anyone stays invested for a long enough time. The temptation to book profits at 25% or 50% or even 100% returns in a 1 to 3 year period is so natural that people miss out the chance of multiplication in wealth that happens only over long periods of say 5 to 10 years. The findings of 18th Motilal Oswal Wealth Creation Study-2013 shows that quality stocks have grown ~200 to 300 times over a period of two decades. If you wish to see the video of Mr. Agrawal's presentation and the panel discussion please click on the link below: Videos: http://www.motilaloswal.com/Financial-Services/Knowledge-Centre/Videos/17 http://www.motilaloswal.com/Financial-Services/Knowledge-Centre/Videos/18 Needless to say, one would have benefitted from this growth only if he or she had remained invested instead of making attempts at cashing out and trading in alternatively. Why is this important for investing in Indian stock markets? In a recent interview when I was asked about the long term view for , I had stated that over the next five to seven years I am expecting today's Sensex value to be actually the Nifty value! Favorable demographics remain the underlying driver of growth for India. While consumption has contributed disproportionately to economic growth in India in the last 6 years, we believe a more focused leadership at the state and central levels will be critical to remove policy road-blocks and help drive investment-led growth. Favorable policy environment should also help exports pick up steam. The economic situation is in a turnaround mode and likely political consolidation happening at the same time should result in a huge upward move in equity markets. While some of this analysis tends to be more technical in nature, I am going to share two slightly long but logical calculations on why todays Sensex value may be the Nifty value in the foreseeable future. Analysis 1: i) Today, the size of our economy (GDP) is approx. Rs. 110 lakh crores ii) Economic (GDP) growth rate at conservative estimates like last 5 years is equal to 6% real growth + 7% inflation which sums up to 13% nominal growth. iii) Size of the economy (GDP) after 10 years at the same pace might be approx. Rs. 373 lakh crores. iv) During last 10 years, the range of Corporate Profits / GDP ratio has been approx. 2.7% to 6.0%. Corporate Profits / GDP means the total profits of all listed companies as a percentage of the size of the economy as a whole. v) Currently it is at 4% to the GDP, thus Corporate Profits may be quantified at approx Rs. 4.4 lakh crores. (Continued overleaf) Our Investment philosophy - BUY RIGHT. SIT TIGHT

Buy Right Sit Tight

Quality : Quality of business and management Buy and Hold: We are strictly buy and hold investors and believe that picking the right business needs skill and holding onto these business to Growth : Growth in earnings and sustained RoE enable our investors to benefit from the entire growth cycle, needs Longevity : Longevity of the competitive advantage /economic moat even more skill. of the business Focus: Our portfolios are high conviction portfolios with 20 to 25 Price : Buying a good business for a fair price rather than buying a fair stocks being our ideal number. We believe in adequate diversification business for a good price. but over-diversification results in diluting returns for our investors and adding market risk.

Portfolio Management Services Regn No. PMS INP 000000670 vi) Long Term average PE ratio is 16 times. vii) Current Market Cap is approximately 16 times multiplied by Rs. 4.4 lakh crores is higher than Rs. 70 lakh crores (which is indeed close to current market cap). viii) 10 years hence, assuming corporate profit to GDP remains unchanged at 4%, the corporate profits in such case would be approx Rs. 15 lakh crores. (4% of Rs 373 lac crores) ix) Assume PE also remains as per long term average of 16 times, market cap may become Rs. 239 lakh crores x) With market cap at Rs. 70 lakh crores today, Nifty is at 6500 points. So if market cap goes to Rs. 239 lakh crores, what will Nifty be???? By simple multiplications it will be approximately 22000 points. You may now calculate the Nifty if the following extremes are tested in the market which are always tested depending on whether we are in bull or bear market: 1) What if GDP grows at 9% real growth instead of 6% growth? 2) What if corporate profits to GDP ratio is 6% instead of 4%? 3) What if market's PE is 24 times as in past peak instead of current 16 times average? You will find that Nifty will be equal to today's Sensex in worst case. For best case, I leave the calculations to you ! Analysis 2: In the market peak of FY08 the size of the economy (GDP) was Rs 45 lakh crores and the market cap of India was Rs 75 lakh crores. Today the GDP is Rs. 110 lakh crores but market is still between Rs 70 lakh to Rs. 75 lakh crores. Historically the range of market cap to GDP ratio has been between 0.5 to 1.75 times. Over the next 5 years at say 13% nominal growth rate take above the GDP may be Rs 202 lakh crores. In this period if the market cap to GDP ratio is 0.5 you will get 6% return on equity, if market cap to GDP ratio is 1 time you may get 22% return on equity and if you are in an equity party where market cap to GDP gets to its peak of 1.75 times, you may get 36.5% return on your equity investment. Should you be in any asset class other than equity? And what should your percentage allocation to equity? As always, I would love to hear from you. Incase of any further clarifications sought or feedback, please feel free to write back to me at [email protected]

Aashish P Somaiyaa Managing Director and CEO Motilal Oswal Asset Management Company Limited

Portfolio Management Services Regn No. PMS INP 000000670 Value Strategy

Strategy Objective Top Sectors

Sector Allocation % Allocation* The Strategy aims to benefit from the long term compounding effect on investments Banking & Finance 26.86 Auto & Auto Ancillaries 26.68 done in good businesses, run by great Infotech 16.99 business managers for superior wealth FMCG 10.35 creation. Pharmaceuticals 8.07 Engineering & Electricals 6.37 Investment Strategy Cash 0.46

• Value based stock selection *Above 5% & Cash • Investment Approach: Buy & Hold Top Holdings • Investments with Long term perspective Top Holdings % Allocation* Ltd. • Maximize post tax return due to Low 11.27 HDFC Bank Ltd. 11.04 Churn Bosch Ltd. 10.10 Limited 8.85 Housing Development Finance Corporation Ltd. 8.21 Details Technologies Ltd. 8.14 State 7.61 Fund Manager : Manish Sonthalia Larsen & Toubro Ltd. 6.37 Ltd. 5.48 Strategy Type : Open ended Hero Motocorp Limited 5.31 Date of Inception : 24th March 2003 Divis Laboratories Ltd 5.28 Benchmark : CNX Nifty Key Portfolio Analysis *Above 5% Investment Horizon: 3 Years + Subscription : Daily Performance Data Value Strategy Nifty Redemption : Daily Standard Deviation (%) 27.28 30.64 Valuation Point : Daily Beta 0.81 1.00

Value Strategy Nifty All Figures in % 30.00 25.03 25.00 18.55 20.00 16.41 13.22 14.02 15.00 12.92 12.96 8.03 10.00 8.55 6.43 6.13 5.21 % of returns 5.00

0.00 1 Year 2 Year 3 Year 4 Year 5 Year Since Inception Periods

The Above strategy returns are of a Model Client. Returns of individual clients may differ depending on factors such as time of entry/exit/ additional inflows in the strategy. The Above returns are calculated on NAV basis and are based on the closing market prices as on 30th April 2014. Past performance may or may not be sustained in future. Returns above 1 year are annualized. Please refer to the disclosure document for further information.

Portfolio Management Services Regn No. PMS INP 000000670 Next Trillion Dollar Opportunity Strategy

Strategy Objective Top Sectors

Sector Allocation % Allocation* The strategy aims to deliver superior returns by investing in focused themes FMCG 26.48 which are part of the next Trillion Dollar Banking & Finance 21.47 GDP growth opportunity. It aims to Auto & Auto Ancillaries 20.89 predominantly invest in Small & Mid Cap Diversified 8.23 stocks with a focus on Identifying Pharmaceuticals 7.87 Emerging Stocks/Sectors. Engineering & Electricals 7.12 Cash 0.40

Investment Strategy *Above 5% & Cash Top Holdings • Stocks with Reasonable Valuation Top Holdings % Allocation* • Concentration on Emerging Themes Ltd. 13.91 • Buy & Hold Strategy Eicher Motors Ltd. 13.34 Ipca Lab Ltd. 7.87 Bosch Ltd. 7.55 Details J&k Bank 7.30 Ltd. 6.31 GlaxoSmithkline Consumer Healthcare Ltd. 6.23 Fund Manager : Manish Sonthalia Ltd. 5.21 Strategy Type : Open ended India Ltd. 5.04 Date of Inception : 11th Dec. 2007 *Above 5% Benchmark : CNX MIDCAP Key Portfolio Analysis

Investment Horizon: 3 Years + Performance Data NTDOP CNX MIDCAP Subscription : Daily Standard Deviation (%) 22.85 32.00 Redemption : Daily Beta 0.57 1.00 Valuation Point : Daily All Figures in % Next Trillion Dollar Opportunity Strategy CNX MIDCAP 35.00 31.66 30.31 30.00 23.96 25.00 21.63 18.61 20.00 17.86 15.00 12.34 12.72 8.43

% of returns 10.00

5.00 2.31 2.17 0.58 0.00 1 Year 2 Year 3 Year 4 Year 5 Year Since Inception Period

The Above strategy returns are of a Model Client. Returns of individual clients may differ depending on factors such as time of entry/exit/ additional inflows in the strategy. The Above returns are calculated on NAV basis and are based on the closing market prices as on 30th April 2014. Past performance may or may not be sustained in future. Returns above 1 year are annualized. Please refer to the disclosure document for further information.

Portfolio Management Services Regn No. PMS INP 000000670 Invest India Strategy

Strategy Objective Top Sectors

Sector Allocation % Allocation* The Strategy aims to generate long term Banking & Finance 23.82 capital appreciation by creating a focused FMCG 19.93 portfolio of high growth stocks having the Pharmaceuticals 12.84 potential to grow more than the nominal Infotech 10.07 GDP for next 5-7 years across market Auto & Auto Ancillaries 7.48 Alcoholic Beverages and Distilleries 6.97 capitalization and which are available at Engineering & Electricals 6.65 reasonable market prices. Chemicals 6.39 Retail 5.38 Investment Strategy Cash 0.46 *Above 5% & Cash • Buy Growth Stocks across Market Top Holdings capitalization which have the potential to grow at 1.5 times the Top Holdings % Allocation* nominal GDP for next 5-7 years. Page Industries Ltd. 12.12 • BUY & HOLD strategy, leading to HDFC Bank Ltd. 11.07 low to medium churn thereby Tata Consultancy Services Ltd. 10.07 enhancing post-tax returns Ipca Lab Ltd. 9.32 Limited 6.97 Details Larsen & Toubro Ltd. 6.65 Pidilite Industries Limited 6.39 Fund Manager : Kunal Jadhwani Bata India Ltd. 5.38 Strategy Type : Open ended ITC Ltd. 5.10 Date of Inception : 11th Feb. 2010 *Above 5% Benchmark : BSE 200 Key Portfolio Analysis Investment Horizon: 3 Years + Performance Data IIS BSE 200

Subscription : Daily Standard Deviation (%) 18.01 20.86 Redemption : Daily Beta 0.75 1.00 Valuation Point : Daily Invest India Strategy BSE 200 All Figures in % 14.00 12.52 12.16 12.00 10.83 10.25 10.00 8.05 7.79 7.93 8.31 8.00 7.34 6.67 6.00 5.46 4.38 4.00

2.00 % of returns 0.25 0.00

-2.00 -1.94 -4.00 1 Month 3 Month 6 Month 1 Year 2 Year 3 Year Since Inception Period The Above strategy returns are of a Model Client. Returns of individual clients may differ depending on factors such as time of entry/exit/ additional inflows in the strategy. The Above returns are calculated on NAV basis and are based on the closing market prices as on 30th April 2014. Past performance may or may not be sustained in future. Returns above 1 year are annualized. Please refer to the disclosure document for further information.

Portfolio Management Services Regn No. PMS INP 000000670 Focused Series IV - Flexi Cap Strategy

Strategy Objective Top Sectors The Strategy aims to generate superior Sector Allocation % Allocation* returns over a medium to long term by Banking & Finance 23.66 investing in only 8-10 companies across Auto & Auto Ancillaries 21.70 market capitalization. The Fund Manager will take active asset allocation calls FMCG 13.91 between cash & equity. The strategy will Infotech 12.97 also take active equity allocation calls Chemicals 11.16 between investments in large caps & mid Pharmaceuticals 10.00 caps & it will follow a policy of profit Engineering & Electricals 5.60 booking with predefined price targets. Cash 1.00 *Above 5% & Cash Investment Strategy Top Holdings • Active Equity Allocation between Top Holdings % Allocation* Mid caps & Large caps • Active Asset Allocation calls between Bosch Ltd. 13.96 Cash and Equity Tech Mahindra Limited 12.97 Kotak Bank 12.03 • Strategy will follow a policy of profit booking with predefined price targets HDFC Bank Ltd. 11.63 Pidilite Industries Limited 11.16 • When the Client’s AUM appreciates Ipca Lab Ltd. 10.00 by 15%, the appreciation amount will be automatically paid-out. Page Industries Ltd. 9.48 Eicher Motors Ltd. 7.75 Cummins India Ltd. 5.60

Details *Above 5% Key Portfolio Analysis Portfolio Manager : Kunal Jadhwani Date of Inception : 07th Dec. 2009 Performance Data Focused Series - IV BSE 200 Benchmark : BSE 200 Standard Deviation (%) 18.37 21.27 Investment Horizon: 12 – 18 Months Beta 0.69 1.00 Subscription : No Redemption : Daily Valuation Point : Daily Focused Series IV BSE 200 All Figures in % 30.00

25.00 24.72 19.25 20.00

15.00 12.52 12.16 10.83 11.95 10.84 8.53 8.53 10.00 7.93

% of returns 4.38 5.24 5.00 0.25 0.00 -1.58 -5.00 1 Month 3 Month 6 Month 1 Years 2 Years 3 Years Since Inception Period The Above strategy returns are of a Model Client. Returns of individual clients may differ depending on factors such as time of entry/exit/ additional inflows in the strategy. The Above returns are calculated on NAV basis and are based on the closing market prices as on 30th April 2014. Past performance may or may not be sustained in future. Returns above 1 year are annualized. Please refer to the disclosure document for further information.

Portfolio Management Services Regn No. PMS INP 000000670 Focused Series V - A Contra Strategy

Strategy Objective Top Sectors

Sector Allocation % Allocation* The strategy aims to invest in fundamentally sound companies that can Banking & Finance 29.77 benefit from changes in a company's Auto & Auto Ancillaries 19.10 valuation which reflects a significant Oil and Gas 15.11 change in the markets view of the Textiles 9.15 company over a horizon of three years. Diversified 8.97 The Strategy focuses on investing in Engineering & Electricals 6.37 stocks that can benefit from growth in Pharmaceuticals 5.56 earnings, re-rating of business or higher Cash 0.01 valuation of assets. Objective is to increase return rather than reduce risk *Above 5% & Cash for Investors. Investment Strategy Top Holdings Top Holdings % Allocation* • Buy and hold philosophy – low Eicher Motors Ltd. 19.10 portfolio churn J&k Bank 18.89 • Follows the principle to pick best Ing Vysya Bank Limited 10.89 rather than diversification Vardhman Textiles Limited 9.15 • Concentrated Strategy Structure of Petronet LNG Limited 9.12 less than 10 stocks Godrej Indus 8.97 Triveni Turbine Limited 6.37 • Investment Horizon : Medium to Ltd. 5.99 Long term Divis Laboratories Ltd 5.56

Details *Above 5%

Fund Manager : Manish Sonthalia Key Portfolio Analysis Date of Inception : 27th Sept. 2010 Performance Data Focused Series - V BSE 200 Benchmark : BSE 200 Standard Deviation (%) 24.86 21.24 Investment Horizon: 2 to 3 Years Beta 0.91 1.00 Subscription : Daily Redemption : Daily Focused Series V BSE 200 All Figures in % Valuation Point : Daily 25.00

19.62 20.30 20.00 16.65 16.04 15.00 12.52 12.16 10.83 10.00 7.93 8.58 % of returns 4.38 3.97 5.00 1.57 0.41 0.25 0.00 1 Month 3 Month 6 Month 1 Year 2 Year 3 Year Since Inception Period The Above strategy returns are of a Model Client. Returns of individual clients may differ depending on factors such as time of entry/exit/ additional inflows in the strategy. The Above returns are calculated on NAV basis and are based on the closing market prices as on 30th April 2014. Past performance may or may not be sustained in future. Returns above 1 year are annualized. Please refer to the disclosure document for further information.

Portfolio Management Services Regn No. PMS INP 000000670 Bulls Eye Strategy

Strategy Objective Top Sectors

Sector Allocation % Allocation The Strategy aims to deliver returns in the short to medium term by investing in Banking & Finance 22.96 Infotech 15.50 fundamentally sound stocks coupled with Pharmaceuticals 14.39 active profit booking. Auto & Auto Ancillaries 14.21 Engineering & Electricals 13.84 Chemicals 6.92 FMCG 6.26 Retail 5.35 Investment Strategy Cash 0.56

*Above 5% & Cash • Active management Top Holdings • Multi Cap Stategy • Regular Profit Booking Top Holdings % Allocation* HDFC Bank Ltd. 10.52 Tech Mahindra Limited 9.18 Ipca Lab Ltd. 8.38 Ltd. 8.07 Cummins India Ltd. 7.16 Pidilite Industries Limited 6.92 Larsen & Toubro Ltd. 6.68 Details Eicher Motors Ltd. 6.59 Tata Consultancy Services Ltd. 6.32 Portfolio Manager : Kunal Jadhwani ITC Ltd. 6.26 Lupin Ltd. 6.01 Strategy Type : Open ended Bata India Ltd. 5.35 Date of Inception : 15th Dec. 2003 Key Portfolio Analysis *Above 5% Benchmark : BSE 200 Performance Data Bulls Eye BSE 200 Investment Horizon: 12 Months + Standard Deviation (%) 27.84 31.27 Subscription : Daily Beta 0.75 1.00 Redemption : Daily Valuation Point : Daily Bulls Eye Strategy BSE 200 All Figures in % 18.00 17.09 16.00 15.13 14.94 14.33 14.01 14.00 13.06 12.52 12.16 12.00 10.97 10.00

8.00 6.60 6.00 4.38 4.78

% of returns 4.00 2.00

0.00 1 Year 2 Year 3 Year 4 Year 5 Year Since Inception Period

The Above strategy returns are of a Model Client. Returns of individual clients may differ depending on factors such as time of entry/exit/ additional inflows in the strategy. The Above returns are calculated on NAV basis and are based on the closing market prices as on 30th April 2014. Past performance may or may not be sustained in future. Returns above 1 year are annualized. Please refer to the disclosure document for further information.

Portfolio Management Services Regn No. PMS INP 000000670 Optima Strategy

Strategy Objective Top Sectors

Sector Allocation % Allocation* The Strategy aims to generate superior returns over the long period by investing Banking & Finance 23.45 Infotech 14.61 in companies with growth potential and Auto & Auto Ancillaries 14.38 which are available at reasonable market Engineering & Electricals 14.25 price. Pharmaceuticals 14.03 Chemicals 7.12 FMCG 6.38 Investment Strategy Retail 5.37 Cash 0.41 • Growth At Reasonable Price (GARP) Top Holdings *Above 5% & Cash • Investment Horizon of 2 years + Top Holdings % Allocation* • Active Portfolio Rebalancing HDFC Bank Ltd. 10.91 • Market Timing Tech Mahindra Limited 8.42 • Situation based Multi Cap approach Axis Bank Ltd. 8.14 Ipca Lab Ltd. 7.99 Cummins India Ltd. 7.40 Details Pidilite Industries Limited 7.12 Larsen & Toubro Ltd. 6.85 Eicher Motors Ltd. 6.74 Portfolio Manager : Kunal Jadhwani ITC Ltd. 6.38 Strategy Type : Open ended Tata Consultancy Services Ltd. 6.19 Lupin Ltd. 6.04 Date of Inception : 30th Dec 2008 Bata India Ltd. 5.37 Benchmark : BSE 200 *Above 5% Investment Horizon: 2 Years + Key Portfolio Analysis Subscription : Daily Performance Data Optima BSE 200 Redemption : Daily Standard Deviation (%) 19.49 26.20 Valuation Point : Daily Beta 0.62 1.00

Optima Strategy BSE 200 All Figures in % 25.00

20.85 20.00 18.14 17.54 15.26 15.00 14.94 13.17 12.52 12.16 9.80 10.00 9.01 % of returns

5.00 4.38 4.78

0.00 1 Years 2 Years 3 Years 4 Years 5 Years Since Inception Period

The Above strategy returns are of a Model Client. Returns of individual clients may differ depending on factors such as time of entry/exit/ additional inflows in the strategy. The Above returns are calculated on NAV basis and are based on the closing market prices as on 30th April 2014. Past performance may or may not be sustained in future. Returns above 1 year are annualized. Please refer to the disclosure document for further information.

Portfolio Management Services Regn No. PMS INP 000000670 Portfolio Actions

In the previous month, we have reduced our exposure from Nestle India in our Value Strategy. After 2 years of low growth v/s historical growth of Nestle India (18-19%) and post the recent interaction with new CEO, we believe that it will take few years for Nestle India to be back to 18-19% growth trend, but it is a great franchise to own as Nestle India still maintains leadership position in segments they have presence in. Growth has been impacted due to overall slowdown in discretionary spending. We have used the proceeds to take fresh positions into . • Sun Pharma is among the largest players in the domestic formulations market and the most profitable one. It makes and markets specialty medicines and Active Pharmaceuticals Ingredients (APIs) for chronic therapy areas such as cardiology, psychiatry, neurology, etc. • Sun Pharma has ability to identify niches in long term therapy areas with high entry barriers and build strong franchise to ensure sustainable growth and high margins. • Sustaining superior profitability on higher base is a strong positive. • One of the strongest Abbreviated New Drug Application (ANDA) pipelines from India with 131 ANDAs pending approval. The pipeline includes a combination of low-competition, patent challenge and normal product opportunities.

Key investment arguments:- • Sun Pharma acquired Ranbaxy for USD 4 billion, diversifies India business, strengthens position in emerging markets, deal valued at 2.2x sales. • Post the acquisition, Sun Pharma will be a leading player in 13 therapies in India, gaining entry into the fast growing OTC space in India with brands like Revital & Volini, • It has establish a footprint across 55 emerging markets. • Sun Pharma became the fifth largest global specialty company and No. 1 pharma company in India with combined market share of 9.2% versus 6.5% for Abbott as per AIOCD-AWACS. • The company is a leading generic company in the generic derma space in the US, which is world's largest pharma market. It now has strong pipeline of 184 ANDAs including high-value FTFs • The company expects to realize its synergies through stronger sales growth, efficient procurement and supply chain efficiencies. It also intends to leverage the human resources. • Keeping the strong acquisition track record in mind, we expect Ranbaxy's assets to show a better performance under Sun Pharma. However, synergy benefits will take time to materialize and may only happen over a period of 24-30 months • At our buying price Sun Pharma was trading at 23x FY15E EPS of 26 with ROE of 27% & ROCE of 41%. We expect profits to grow at 20% CAGR for next 3 – 5 years. From our Next Trillion Dollar Opportunity Portfolio, we exited our holdings in Mcleod Russel, the leading black tea producer in India. We have done this change to create liquidity to take position into Colgate Palmolive India Ltd. (CPIL), which is expected to deliver better earnings growth over the next 2-3 years. • CPIL's volume growth at close to double-digit YoY for 23 consecutive quarters is not only unparalleled among fast moving consumer goods (FMCG) peers, but it is also sustaining this level, which is remarkable given the sharp slowdown witnessed by FMCG peers. • Oral care product consumption per gram is much lower in India compared to some emerging market peers. Less than 10% of Indians brush their teeth twice a day, a habit which is not widely prevalent even in urban areas. Over 325 million people in the country do not use toothpaste at all. • Volume growth is led by strong rural toothpaste demand (low rural penetration of 63%, as per IMRB), CPIL's rapidly increasing rural reach (the plan to double rural reach in three years is already underway), its dominance at the lower end (market share higher than its overall 56% toothpaste market share), unmatched category development efforts in schools and villages, and the ongoing shift in consumer preference from toothpowder to toothpaste. • Other industry entry barriers are brand power, category development efforts, dedicated focus, and track record in emerging markets where CPIL take the edge. • CPIL's valuation at 30xFY15E earnings is attractive, particularly when strong EPS growth of 22-24% CAGR likely over the next two years is accompanied by high RoE and RoCE of ~90% each and a dividend yield of around 3%.

Portfolio Management Services Regn No. PMS INP 000000670 The given stocks are part of portfolio of a model client of Value Strategy and NTDOP Strategy as on 30th April 2014. The stock forming part of the existing portfolio under Value Strategy and NTDOP Strategy may or may not be bought for new client. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Name of the PMS Strategies does not in any manner indicate its future prospects and returns. The Companies mentioned above is only for the purpose of explaining the concept and should not be construed as recommendations from MOAMC. Risk Disclosure And Disclaimer Disclaimer: This document has been prepared and issued on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this document is for general purposes only and not a complete disclosure of every material fact and terms and conditions. The information / data herein alone is not sufficient and shouldn't be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions, figures, charts/graphs, estimates and data included in this document are as on date and are subject to change without notice. While utmost care has been exercised while preparing this document, Motilal Oswal Asset Management Company Limited does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The statements/graphs contained herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Readers shall be fully responsible / liable for any decision taken on the basis of this presentation. No part of this document may be duplicated in whole or in part in any form and/or redistributed without prior written consent of the Motilal Oswal Asset Management Company Limited. Readers should before investing in the Strategy make their own investigation and seek appropriate professional advice. Investments in Securities are subject to market and other risks and there is no assurance or guarantee that the objectives of any of the strategies of the Portfolio Management Services will be achieved. Clients under Portfolio Management Services are not being offered any guaranteed/assured returns. Past performance of the Portfolio Manager does not indicate the future performance of any of the strategies. The name of the Strategies do not in any manner indicate their prospects or return. The investments may not be suited to all categories of investors. The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Neither Motilal Oswal Asset Management Company Ltd. (MOAMC), nor any person connected with it, accepts any liability arising from the use of this material. The recipient of this material should rely on their investigations and take their own professional advice. Opinions, if any, expressed are our opinions as of the date of appearing on this material only. While we endeavor 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. The Portfolio Manager is not responsible for any loss or shortfall resulting from the operation of the strategy. Recipient shall understand that the aforementioned statements cannot disclose all the risks and characteristics. The recipient is requested to take into consideration all the risk factors including their financial condition, suitability to risk return, etc. and take professional advice before investing. As with any investment in securities, the value of the portfolio under management may go up or down depending on the various factors and forces affecting the capital market. Any forward - looking statements are not predictions and may be subject to change without notice. For tax consequences, each investor is advised to consult his / her own professional tax advisor. This document is not for public distribution and has been furnished solely for information and must not be reproduced or redistributed to any other person. Persons into whose possession this document may come are required to observe these restrictions. No part of this material may be duplicated in any form and/or redistributed without' MOAMCs prior written consent. Distribution Restrictions - This material should not be circulated in countries where restrictions exist on soliciting business from potential clients residing in such countries. Recipients of this material should inform themselves about and observe any such restrictions. Recipients shall be solely liable for any liability incurred by them in this regard and will indemnify MOAMC for any liability it may incur in this respect. CDL00046_40112_010

Portfolio Management Services Regn No. PMS INP 000000670