October 14, 2010

Disclaimer: This document is prepared by Fullerton Securities & Wealth Advisors Ltd (FSWA). This document is not for public distribution and has been furnished to you solely for your information and you are notified that you should not further copy, modify, use or distribute the information in any way unless you obtain written consent from FSWA. The information provided in the document is on the "best effort" basis and is subject to change depending on several factors, including general market conditions. While reasonable care to compile the document but the accuracy and completeness cannot be guaranteed either by FSWA or any other person or entity associated with it. The returns shown are merely estimates and forecasts and are not necessarily indicative of future performance and can change without notice. The document is prepared only for your information and is not sufficient for making an investment decision. You should rely on your own investigations and seek professional advice for investment decision. Neither FSWA nor any person connected with it, accepts any liability either arising from the use of this document or due to any inadvertent error in the information contained in this document. Financial investments carry risks including principal risk and therefore you should seek professional advice prior to making any investment decision. The risk of any losses occurring by use of this report or document will be entirely yours. The investments covered in this report are not guaranteed. Also past performance of an investment or fund is not an indication of future performance. FSWA, its affiliates, or associates, or any regulatory or other body or entity assumes no liability or responsibility for investment results or losses arising out of investment decisions made by you. This document is not to be considered as an offer to sell or a solicitation to buy any security or financial product. FSWA reserves the right to modify or alter the terms and conditions of the use of this service or discontinue, temporarily or permanently, the information and services provided (or any part thereof) at any time, with or without prior notice and FSWA shall not be liable to you for any suspension, modification, or termination

of the information and services provided herein. www.fullertonsecurities.co.in Page | 1

Jyoti Structures Ltd STRONG BUY

Jyoti Structures Ltd. (JSL) is amongst the top three companies in India in providing

turnkey solutions in the field of High Voltage Power Transmission Lines and Substations.

Jyoti Structures has over three decades of experience and has provided its services to a

wide spectrum of customers around the world across 40 countries.

The Government has lined massive capex plans in the power sector including

transmission. The capex on transmission is estimated to be Rs. 1400bn during the

eleventh five year plan which is estimated to rise to Rs. 2400bn during the twelfth

five year plan.

During Q1FY2011 the company reported order inflows of Rs. 5.3bn down by 37% YoY

on account of slower tendering by PGCIL. At the end of the quarter JSL had an order

book of Rs. 41bn which is almost 2x its FY2010 consolidated revenues and provides

strong revenue visibility.

We expect JSL net revenues to grow at a CAGR of 18.2% over FY2010-12E to Rs

28.2bn in FY2012 from Rs 20.2bn in FY2010. We further estimate that the PAT would

grow at a CAGR of 20.7% to Rs 1.32bn in FY2012.

Based on a PE multiple of 12xFY12E, the fair value for Jyoti Structures works

out to Rs 193.

Projections (Rs mn) FY08A FY09A FY10A FY11E FY12E

Net Revenue 13704.0 17243.4 20185.4 23516.0 28219.2

Y-o-Y Growth (%) 25.8 17.1 16.5 20.0

EBITDA 1718.7 2031.9 2397.8 2704.3 3160.6

Y-o-Y Growth (%) 18.2 18.0 12.8 16.9

Profit After Tax 724.1 797.4 906.3 1090.6 1320.5

Y-o-Y Growth (%) 10.1 13.6 20.3 21.1

EPS Rs 8.9 9.8 11.2 13.3 16.1

BVPS Rs 42.0 51.0 61.3 73.2 87.6

EBITDA Margin (%) 12.5 11.8 11.9 11.5 11.2

PAT Margin (%) 5.3 4.6 4.5 4.6 4.7

ROE (%) 21.2 19.1 18.3 18.2 18.4

PERx 15.5 14.2 12.3 10.4 8.6

P/B Ratio 3.3 2.7 2.3 1.9 1.6

Financial Snapshot

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Jyoti Structures Sensex

BSE Code/NSE Code

Bloomberg Code JYS:IN

No. of Shares (Mn) 82.0

Sensex/Nifty

CMP Rs (13th Oct '10) 138.2

Beta 1.4

Market Cap (Rs mn) 11,332

52 Week High-Low 197.0/127.0

2W Avg Volume 300,000

30D 3M 6M 1Y

Jyoti Structure 5.0% -11.8% -18.3% -10.3%

Sensex 6.9% 15.3% 17.3% 20.1%

Nifty 7.6% 15.7% 18.2% 21.8%

Promoter 26.8%

Institution 48.6%

Non Institution 24.6%

Total 100.0%

SHARE HOLDER PATTERN (%)

1 Year Price Performance (Rel. to Sensex)

STOCK DATA

PRICE DATA

STOCK RETURN (%)

20687.9/6233.9

513250 / JYOTISTRUC

Recommendations <= 1 year 1 - 2 yrs 2 - 5 yrs

Strong Buy

Buy

Hold

Reduce

Sell

Strong Buy – Expected Returns > 20% p.a.

Buy – Expected Returns from 10 to 20% p.a.

Hold – Expected Returns from 0 % to 10% p.a.

Reduce – Expected Returns from 0 % to 10% p.a. with possible

downside riskSell – Returns < 0 %

October 14, 2010

Disclaimer: This document is prepared by Fullerton Securities & Wealth Advisors Ltd (FSWA). This document is not for public distribution and has been furnished to you solely for your information and you are notified that you should not further copy, modify, use or distribute the information in any way unless you obtain written consent from FSWA. The information provided in the document is on the "best effort" basis and is subject to change depending on several factors, including general market conditions. While reasonable care to compile the document but the accuracy and completeness cannot be guaranteed either by FSWA or any other person or entity associated with it. The returns shown are merely estimates and forecasts and are not necessarily indicative of future performance and can change without notice. The document is prepared only for your information and is not sufficient for making an investment decision. You should rely on your own investigations and seek professional advice for investment decision. Neither FSWA nor any person connected with it, accepts any liability either arising from the use of this document or due to any inadvertent error in the information contained in this document. Financial investments carry risks including principal risk and therefore you should seek professional advice prior to making any investment decision. The risk of any losses occurring by use of this report or document will be entirely yours. The investments covered in this report are not guaranteed. Also past performance of an investment or fund is not an indication of future performance. FSWA, its affiliates, or associates, or any regulatory or other body or entity assumes no liability or responsibility for investment results or losses arising out of investment decisions made by you. This document is not to be considered as an offer to sell or a solicitation to buy any security or financial product. FSWA reserves the right to modify or alter the terms and conditions of the use of this service or discontinue, temporarily or permanently, the information and services provided (or any part thereof) at any time, with or without prior notice and FSWA shall not be liable to you for any suspension, modification, or termination

of the information and services provided herein. www.fullertonsecurities.co.in Page | 2

Jyoti Structures Ltd. (JSL) is amongst the top three companies in India in providing turnkey solutions in the field of High

Voltage Power Transmission Lines and Substations. Jyoti Structures has over three decades of experience and has provided its

services to a wide spectrum of customers around the world across 40 countries.

Significant opportunities in the transmission space

With significant investments lined up in the power sector the opportunities in the transmission sector are expected to be

buoyant in the medium to long term. The Government has estimated capex of Rs. 1400bn and Rs. 2400 in the transmission

sector during the eleventh and twelfth five year plan respectively.

The Government’s decision to allow private developers to become transmission service providers on a BOO basis would throw

up significant opportunities in the transmission space. Also order flows would be driven on the back of PGCIL’s plan to develop

nine High Capacity Power Transmission Corridor (HCPTC) which would be set in tandem with completion of power projects

being set by Independent Power Producers over the next few years.

Order Flow expected to pick up from H2FY2011

During Q1FY2011 the company reported order inflows of Rs. 5.3bn down by 37% YoY on account of slower tendering by

PGCIL. At the end of the quarter JSL had an order book of Rs. 41bn which is almost 2x its FY2010 consolidated revenues and

provides strong revenue visibility. The order book constitutes of 68% from the transmission sector, 21% from rural

electrification projects and 11% from substation projects. During the quarter the company bagged major orders from PGCIL

and from Bhutan and Bangladesh utilities. Over the years JSL has reduced its concentration from PGCIL orders which

currently accounts for approximately 35% of the order backlog. Also more than 80% of the order backlog is from the domestic

markets.

The management has guided for pick up in order flow in the second half of the year and expects to close the financial year

with an order backlog of around Rs. 50bn as compared to Rs. 41bn at the end of Q1FY2011.

Joint Ventures to help tap overseas demand

JSL is also looking to diversify its order book and has set up Joint Ventures in the Gulf region and South Africa in order to tap

the opportunities. The company has a JV in the Gulf region, Gulf Jyoti which has an order backlog of Rs. 10bn executable over

the next two years. The company also has a subsidiary based out of South Africa which has put in bids for projects worth

approximately Rs. 5bn. The company’s policy of tapping overseas market would help it to capture the growth potential of

other fast developing economies and also reduce dependency on any particular region thus ensuring greater stability of

earnings. However greater share of overseas revenue would expose the company to currency fluctuations.

Significant capex lined up in the transmission space during the eleventh five year plan. The management has guided for an order backlog of Rs. 50bn by the end of FY2011.

BUSINESS PROFILE

October 14, 2010

Disclaimer: This document is prepared by Fullerton Securities & Wealth Advisors Ltd (FSWA). This document is not for public distribution and has been furnished to you solely for your information and you are notified that you should not further copy, modify, use or distribute the information in any way unless you obtain written consent from FSWA. The information provided in the document is on the "best effort" basis and is subject to change depending on several factors, including general market conditions. While reasonable care to compile the document but the accuracy and completeness cannot be guaranteed either by FSWA or any other person or entity associated with it. The returns shown are merely estimates and forecasts and are not necessarily indicative of future performance and can change without notice. The document is prepared only for your information and is not sufficient for making an investment decision. You should rely on your own investigations and seek professional advice for investment decision. Neither FSWA nor any person connected with it, accepts any liability either arising from the use of this document or due to any inadvertent error in the information contained in this document. Financial investments carry risks including principal risk and therefore you should seek professional advice prior to making any investment decision. The risk of any losses occurring by use of this report or document will be entirely yours. The investments covered in this report are not guaranteed. Also past performance of an investment or fund is not an indication of future performance. FSWA, its affiliates, or associates, or any regulatory or other body or entity assumes no liability or responsibility for investment results or losses arising out of investment decisions made by you. This document is not to be considered as an offer to sell or a solicitation to buy any security or financial product. FSWA reserves the right to modify or alter the terms and conditions of the use of this service or discontinue, temporarily or permanently, the information and services provided (or any part thereof) at any time, with or without prior notice and FSWA shall not be liable to you for any suspension, modification, or termination

of the information and services provided herein. www.fullertonsecurities.co.in Page | 3

Decent Performance in Q1FY11…

Jyoti Structures reported a decent set of numbers for the quarter ended June 2011 with revenues up by 16.2% YoY at Rs.

5.64bn on the back of larger order book. Operating profits for the quarter stood at Rs. 639.23mn an increase of 18.5% YoY.

Net profits for the quarter stood at Rs. 263.36mn up by 17.7% YoY. During the quarter the company reported fresh order

intake of Rs. 5.3bn down by 37% YoY on account of lower tendering by PGCIL and other utilities. Order booking is expected

to pick up from the second half of FY2011. At the end of 1QFY2011 JSL had an order book of Rs. 41bn which provides strong

revenue visibility.

An order book of Rs. 41bn provides strong revenue visibility. Highest bill to book ratio amongst peer group at almost

2xFY2010 revenues.

Peer Comparison

Amongst the peer group JSL is most comfortably placed due to a higher bill to book to ratio of almost 2xFY10 revenues as

compared to Kalpataru power and KEC international where the book to bill ratio is closer to 1xFY10 revenues. Also more

than 80% of JSL’s order book is from the domestic market which is the highest in it’s peer group provides comfort in terms

of sustainability of revenues as domestic demand is expected to be very strong over the longer term.

BUSINESS PERFORMANCE

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CompaniesRevenues

(Rs mn)

EBITDA

Margins %

PAT

Margins %P/E P/B CMP ROE %

Jyoti Structures 20,185.4 11.9 4.5 12.3 2.3 138.2 18.0

Kalpataru power 40,088.8 10.4 4.4 13.7 2.4 183.7 17.3

KEC International 39,082.2 10.4 4.9 13.8 3.3 510.4 24.1

FY10 Consolidated Figures Used

Peer Group Comparison

October 14, 2010

Disclaimer: This document is prepared by Fullerton Securities & Wealth Advisors Ltd (FSWA). This document is not for public distribution and has been furnished to you solely for your information and you are notified that you should not further copy, modify, use or distribute the information in any way unless you obtain written consent from FSWA. The information provided in the document is on the "best effort" basis and is subject to change depending on several factors, including general market conditions. While reasonable care to compile the document but the accuracy and completeness cannot be guaranteed either by FSWA or any other person or entity associated with it. The returns shown are merely estimates and forecasts and are not necessarily indicative of future performance and can change without notice. The document is prepared only for your information and is not sufficient for making an investment decision. You should rely on your own investigations and seek professional advice for investment decision. Neither FSWA nor any person connected with it, accepts any liability either arising from the use of this document or due to any inadvertent error in the information contained in this document. Financial investments carry risks including principal risk and therefore you should seek professional advice prior to making any investment decision. The risk of any losses occurring by use of this report or document will be entirely yours. The investments covered in this report are not guaranteed. Also past performance of an investment or fund is not an indication of future performance. FSWA, its affiliates, or associates, or any regulatory or other body or entity assumes no liability or responsibility for investment results or losses arising out of investment decisions made by you. This document is not to be considered as an offer to sell or a solicitation to buy any security or financial product. FSWA reserves the right to modify or alter the terms and conditions of the use of this service or discontinue, temporarily or permanently, the information and services provided (or any part thereof) at any time, with or without prior notice and FSWA shall not be liable to you for any suspension, modification, or termination

of the information and services provided herein. www.fullertonsecurities.co.in Page | 4

Based on a PE multiple of 12xFY12E, the fair value for Jyoti Structures works out to Rs 193.

VALUATION

We expect Jyoti Structures net revenues to grow at a CAGR of 18.2% over FY2010-12E to Rs 28.2bn in FY2012

from Rs 20.2bn in FY2010. We further estimate that PAT would grow at a CAGR of 20.7% to Rs 1.32bn in FY2012.

JSL witnessed a slowdown in order booking during the first quarter of FY2011. Order booking is expected to pick

up from the second half of FY2011 through FY2012 as we approach the end of the eleventh five year plan in

March 2012.

Based on a PE multiple of 12xFY12E, the fair value for Jyoti Structures works out to Rs 193.

We recommend a ‘STRONG BUY’ rating on the stock.

Particulars (Rs mn) FY2008 FY2009 FY2010 FY2011E FY2012E

Net Revenue 13704.0 17243.4 20185.4 23516.0 28219.2

Expenditure 11985.3 15211.5 17787.7 20811.7 25058.7

EBITDA 1718.7 2031.9 2397.8 2704.3 3160.6

Interest 464.3 682.6 786.2 849.1 934.0

PBDT 1254.4 1349.3 1611.6 1855.3 2226.6

Depreciation 67.0 86.4 168.9 177.4 195.1

Other Income 15.2 0.7 0.9 0.0 0.0

PBT 1202.6 1263.6 1443.6 1677.9 2031.5

Less: Tax 478.5 466.2 524.4 587.3 711.0

Profit After Tax 724.1 797.4 919.2 1090.6 1320.5

Minority Interest 0.0 0.0 12.9 0.0 0.0

PAT after Minority Interest 724.1 797.4 906.3 1090.6 1320.5

PAT Margin (%) 5.3 4.6 4.5 4.6 4.7

EBITDA Margin (%) 12.5 11.8 11.9 11.5 11.2

ROE (%) 21.2 19.1 18.3 18.2 18.4

EPS Rs 8.9 9.8 11.2 13.3 16.1

BVPS (Rs.) 42.0 51.0 61.3 73.2 87.6

FY2011E FY2012E

Valuation Ratios (x)

P E R x 10.4 8.6

P/B Ratio 1.9 1.6

Financial Analysis and Projection

October 14, 2010

Disclaimer: This document is prepared by Fullerton Securities & Wealth Advisors Ltd (FSWA). This document is not for public distribution and has been furnished to you solely for your information and you are notified that you should not further copy, modify, use or distribute the information in any way unless you obtain written consent from FSWA. The information provided in the document is on the "best effort" basis and is subject to change depending on several factors, including general market conditions. While reasonable care to compile the document but the accuracy and completeness cannot be guaranteed either by FSWA or any other person or entity associated with it. The returns shown are merely estimates and forecasts and are not necessarily indicative of future performance and can change without notice. The document is prepared only for your information and is not sufficient for making an investment decision. You should rely on your own investigations and seek professional advice for investment decision. Neither FSWA nor any person connected with it, accepts any liability either arising from the use of this document or due to any inadvertent error in the information contained in this document. Financial investments carry risks including principal risk and therefore you should seek professional advice prior to making any investment decision. The risk of any losses occurring by use of this report or document will be entirely yours. The investments covered in this report are not guaranteed. Also past performance of an investment or fund is not an indication of future performance. FSWA, its affiliates, or associates, or any regulatory or other body or entity assumes no liability or responsibility for investment results or losses arising out of investment decisions made by you. This document is not to be considered as an offer to sell or a solicitation to buy any security or financial product. FSWA reserves the right to modify or alter the terms and conditions of the use of this service or discontinue, temporarily or permanently, the information and services provided (or any part thereof) at any time, with or without prior notice and FSWA shall not be liable to you for any suspension, modification, or termination

of the information and services provided herein. www.fullertonsecurities.co.in Page | 5

Director Name Current Position Description

S.D. Kshirsagar Chairman (Non Executive) S. D. Kshirsagar has been Chairman of Jyoti Structures Ltd. since July 2005 and serves as its Non-executive &

Independent Director. Mr. S. D. Kshirsagar holds a masters degree in Economics and also PGDIA

P. K. Thakur Executive Vice ChairmanMr. Prakash K. Thakur holds a bachelors degree in Civil Engineering and a post graduate degree in MBA

(Finance) . Mr. Thakur has been a Executive Vice Chairman of Jyoti Structures Ltd. since April 1, 2010 and as its

Whole-time Director since July 26, 2007

S. V. Nayak Managing DirectorMr. Santosh V. Nayak,, has been Managing Director at Jyoti Structures Ltd since April 1, 2010. Mr. Nayak served

as Deputy Managing Director at Jyoti Structures Ltd., and has been its Whole-time Director since July 26, 2007.

Mr. Vinayak holds a masters degree in commerce and is also an MBA.

K. R. Thakur Whole-time Director

K. R. Thakur served as an Executive & Non-Independent Director of Jyoti Structures Ltd. since April 1, 2004 and

served as Managing Director. Mr. Thakur has been Whole-time Director at Jyoti Structures Ltd since April 1,

2010. He has Overall 40 years of experience, out of which 26 years in Trans- mission Line Industry. He holds a

Directorships of JSL Corporate Services Limited, Shree Chhatrapati Shahu Power Co Ltd. and Valmir Constructions

Pvt Ltd. He holds a bachelors degree in Mechanical Engineering.

A. J. Khan Director (Independent)A. J. Khan has been a Non Executive & Independent Director of Jyoti Structures Ltd. since April 1, 2003

R. C. Rawal Director (Independent) Mr. Rameshchandra C. Rawal has been Additional Director at Jyoti Structures Ltd., since January 25, 2010

G. L. Valecha Director (Non Independent)Mr. G. L. Valecha has been a Non Independent Non Executive Director of Jyoti Structures Ltd. since April 26,

2003

S. H. Mirchandani Director (Non Independent)

S. H. Mirchandani, B.E, MBA has been a Non-executive & Non-Independent Director of Jyoti Structures Ltd. since

May 29, 1991. Mr. Mirchandani has varied business experiences across various industries including Trading and

real estate. He serves as a Director of Shalimar Housing & Finance Ltd. and Seagull Solutions Ltd. Mr.

Mirchandani holds a bachelors degree in Mechanical Engineering and a MBA degree in Finance.

Board Of Directors