ong term nvestment all onmobile global ltd....

Unicon Research, Unicon Financial Intermediaries Pvt Ltd.Email: [email protected]

1

OnMobile Global Ltd.

Company Report | Stock Idea

17 January 2011 BUY

LONG TERM INVESTMENT CALL

Shareholding Pattern (%)

1 - Year Stock Performance

OnMobile Global Ltd (OMGL) is a global mobile value added services (MVAS)provider with offerings such as ring back tones (RBT), music, mobile video andmedia, messaging and personal cloud products.

Investment Rationale

Medium term growth prospects look positive for Indian VAS industryDespite the current short-term hiccups, medium term outlook for domestic VASlook positive with expected increase in 3G penetration in the next two years,usage of utility VAS products and penetration levels of existing products throughproduct innovation and brining in lower versions

Mass appealing VAS products with diversified portfolio has made OMGL aleading MVAS provider

OMGL has over 45 VAS products and services, covering most of the productlines in the industry. Successful products such as RBT, sports information serviceand speech recognition technology have garnered subscriber base

Investments in emerging markets propelling international business

For 1HFY12, revenue from international operations grew at 87.5% backed bycontinued investments in LatAm, Africa and other regions. We believe theseinvestments to drive the future growth of OMGL and estimate a 3-year revenueCAGR of 44% for outside India operations

Higher adj. EPS going forward is backed by available growth opportunitiesand increase in EBITDA margins

We believe the existing growth opportunities for OMGL from internationalbusiness and projected increase in EBITDA margins going forward to facilitateadj. EPS to reach INR 8.6 by FY14, a jump of 62% from FY11 levels

Outlook & Valuation

With higher penetration levels in LatAm and Africa and expected revival onthe domestic front we estimate a 3-year revenue and adj. EPS CAGR of 16.2%and 16.3% respectively. Further, divestment of remaining stake in VerseInnovation Pvt. Ltd. is likely to garner a pre-tax profit of INR 700mn duringFY12.

Coming to stock performance, OMGL had underperformed the whole marketand lost over 50% of its share price in the last one year. At CMP of INR 72.4, theshare is currently trading at 15x 12-month historical PE (adj. EPS) as against aone-year median PE of 18x. Based on this data, we value OMGL stock at 14.4x (a20% discount to median PE) our estimated FY13 EPS of INR 6.5, thus giving atarget price of INR 93.6 and an upside potential of 29.3% in the next 12-18 months.Thus we recommend our investors to BUY OMGL shares.

Source: Bloomberg, Unicon Research

INR mn

Analysts:

Ravikanth Kanamarlapudi | [email protected]

50

70

90

110

130

150

170

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

OMGL Nifty

Indian

Promoters,

13.7

Foreign

Promoters,

34.4

FIIs, 21.2

Others, 30.8

Key Financials FY11 FY12E FY13E FY14E

Net Sales 5,372 6,155 7,055 8,428

EBITDA 1,206 1,294 1,554 1,941

EBITDA margins (%) 22.4 21.0 22.0 23.0

Adj Net Profit 628 683 763 1019

Net Profit margins (%) 11.7 11.1 10.8 12.1

Adj. EPS 5.3 5.8 6.5 8.6

Industry Telecom VAS

CMP (INR) 72.4

Target (% Up / Down) 93.6

Upside (%) 29.3

52 week High/Low (INR ) 154.7/54.1

Market Cap (INR BN) 8.5

3M Avg. Daily Volumes 924,922

P/E (FY13E) 11.2x



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Company Description

Incorporated in the year 2000, OMGL is an aggregator and a technology enabler inthe mobile VAS supply chain. It is promoted by OnMobile Systems INC (OMSI), ShriArvind Rao and Shri Chandramouli J and came with a public issue in the year 2008.With a decade of successful operations, OMGL had become the market leader in thedomestic telecom VAS market. OMGL has one of the largest breadths of product linesin India and has 45 products and services covering both 2G and 3G technologies. Inthe past five years OMGL had made four acquisitions to widen its VAS portfolio. Ithas presence in 53 countries and has got over 90 customers from mobile operators,media houses, m-commerce (IRCTC, Make my trip, PVR cinemas), and hand setmanufacturers such as Nokia, HTC, Motorola and Sony.

Product Portfolio

Source: Company, Unicon Research


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OnMobile Global Ltd.OMGL is servicing over 114mn unique users every month and has a market reach of1.5bn users globally. In FY11, top five customers contributed for 70% of total revenues.Its customers include both multi-country telcos such as Vodafone, Telefonica, Orange,SingTel, Airtel and single country telcos such as Idea, Maxis and Esia. Though asignificant portion of OMGL current revenues come from India, revenues outsideIndia has grown rapidly- for 1HFY12, India contributed for 62% of OMGL's totalrevenues as against 77% a year ago. OMGL is fast gaining foothold in emergingmarkets (Africa, LatAm and South East Asia) and developed countries in both Europeand North America.

Some of the Accolades and Awards that OMGL received in the past few years includeDeloitte Technology Fast 50 India, Frost & Sullivan Market Share Leadership awardfor MVAS category and won Google Android Developer Challenge 2008 for PhoneBook 2.0. Its founder Shri Arvind Rao, was awarded as the 'Path Breaker of the year2009' for his contribution in the field of Telecom and Infotech space.



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Industry Overview

VAS value chain typically constitute content owner, aggregator and technologyenabler, service provider and the end user. According to a TRAI report, of the totalVAS revenues, approx. 60%-65% is retained by service providers, while the rest isdistributed among content owner (10%), content aggregator (15%) and technologyenabler (15%). However, many a times content aggregation and the supportingtechnology is provided by a single entity such as OGML.

Indian VAS market is estimated at INR 122bn in 2010, and accounted for 7% of totalrevenue generated by telecom operators. According to Internet and Mobile Associationof India (IAMAI), nearly 57% of this market constitute entertainment related servicessuch as ringtones, RBT (and its variants), music, songs and wallpapers followed byinformation related services such as one-time request and monthly subscriptiontogether contributing for 28%. M-commerce solutions such as mobile ticketing andcoupons constitute only 4% of the total market. These services along with internetbrowsing, video calling, video conferencing and video on demand are expected topick up in the next few years with affordable smart phones (having front camera)and the rollout of 3G and Broadband Wireless Access (BWA) services.

However, in the recent past, there has been a slowdown in the VAS services growth,even at a time when the mobile subscriber base was increasing on a month-on-month basis. This anomaly is largely due to low ARPU new subscribers who eitheruse mobile services for emergency services or with multiple SIM holders. Further, therecent restrictions laid down by TRAI on tele-marketers and limiting the number ofSMS per day to 200, have also curtailed marketing VAS products.

28.046.5

75.1

97.6

122.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

2006 2007 2008 2009 2010

Source: TRAI, ASSOCHAM-Deloitte study 2011 Source: TRAI, IAMAI report on MVAS in India: 2010

Mobile VAS market in India (in Bn Rs) MVAS market segments -2010

Info-One time

request

18%

Info-Monthly

subscription

10%

Info - Voice/IVR

5%

Info-Others

6%

m-commerce

4%

RBT29%

Music, songs,wallpapers

14%

Voting9%

Games5%

Entertainment

57%


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OnMobile Global Ltd.Investment Rationale

Medium term growth prospects look positive for Indian VAS industry

Despite the current short-term hiccups, medium term outlook for VAS services lookpositive. As per ASSOCHAM-Deloitte study paper, VAS market is expected to witnessa 5-year CAGR of 26.5% and reach INR 482bn by 2015. We expect most of the growthin the next few years to come from three broad areas—VAS services surrounding 3G,information and application services to the mass in the rural and semi-urban areasand achieving higher penetration levels for the existing VAS services.

With the launch of 3G, India is geared up for whole set of new services to start.However, lower penetration of 3G compatible mobile handsets and high cost of 3Gservices are hindering growth. Of the total active subscribers of 626mn, only ~9mnare using 3G services. In order to increase penetration levels, telcos have startedproviding 3G intra-circle roaming facilities allowing consumers to experienceseamless services. They are also offering consumers a wide number of options in 3Gdata packages at every price point, which would help grow the 3G services. Thoughtelcos such as Airtel and Vodafone have put the starting price of a video call at 5p/secand INR 3/min respectively, they are still six times the audio call charges. In addition,awareness among the consumers needs to increase about these services. In the lastone year, though 3G enabled dual camera handset prices have come to a startingprice of INR 3000, to stimulate growth these features should become a standard in allthe mobile phones. Even though growth potential for VAS industry looks brightwith 3G, as the average usage of a cell phone in India is over two years we estimateit may take another 1.5-2 years before 3G makes any material impact for VAS industry.

With the mobile penetration levels are increasing in semi-urban and rural areas,VAS services catering to their needs will push up demand in these segments. Servicessuch as weather forecasts, real time mandi prices and tips catering to the farmingcommunity are expected to have large potential demand. In addition, utility servicessuch as providing banking services through mobile phones (example: Vodafone M-Paisa service tied-up with HDFC bank in Rajasthan), M-Health and M-Educationwill help the government in providing basic services and achieve targeted inclusivegrowth.

In order to increase the penetration levels of existing services, companies have startedbringing in lower versions (with limited features) of the successful existing services.For example, in order to increase the penetration levels of RBT, OMGL has come outwith RBT Lite, where monthly charges are 50% lower than the full version, but withthis variant it plans to increase the RBT penetration levels to 40% from the existing20%.



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Mass appealing VAS products with diversified portfolio has made OMGL a leadingMVAS provider

Over the last one decade, through its in-house research, OMGL has developed manyVAS solutions such as RBT and its variants, mobile ticketing, mobile box office (20minutes audio movie clip), music radio, speech recognition based music search,Karaophone (contesting over mobile), sports, personal data management applicationin both Android and Apple IOS platforms for the developed markets and many more.Products and services that it got access through acquisition are video technology(Dilithium), mobile data products (ITfinity), and telematic, interactive and voicerecognition software services (Telisma S.A).

For RBT (accounts for 30% of domestic VAS industry revenues), OMGL has got a tie-up with operators for ~45% of the total addressable domestic market, but it garnered62% market share, suggesting superior product offerings, leading to higher penetrationlevels as compared to competitors. Infact, according to OMGL it is the number oneRBT service provider in the world, with over 60mn active subscribers per month.Though RBT is the most successful product till date for OMGL, other products too areequally interesting. Sports information service, which was one of its first productsoffered has over 11million subscribers registered. Its music search which runs onspeech recognition technology is the largest deployed service in India in its category.OMGL is hoping to take the speech recognition technology forward to other categoriessuch as for shopping products. We believe interactive voice response system andspeech recognition technology that OMGL is providing has good scope in utility VASservices such as farming tips, m-health, m-education where the masses may havelittle or no knowledge of operating mobile applications. Other successful products inthe music & entertainment space are m-radio and mobile box office.

OMGL has also deployed its new generation VAS services such as video gateways,video VAS, phonebook 2.0, phone backup (35mn downloads) and social address bookin both developed and emerging markets. A testimony to this is it has won manylarge telcos in the North American region for deploying connected applications andmobile social networking products. Recently, OMGL has also launched OnmobileCloud, a software as a service (SaaS) platform in LatAm and Spain which can support10-15 more SaaS services that are expected to be launched in the next 1-2 years. AfterRBT, the next big opportunity that OMGL is betting on in India is video calling. Itslatest acquisition, Dilithium Networks in 2010, gave OMGL a strong foothold in the3G video technology space with access to 175 patents, many new customers andregions. OMGL has already got all the four large operators in India to sign up for itsvideo technology and expects video services to start showing positive results in thenext 1-2years period.


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OnMobile Global Ltd.Investments in emerging markets propelling revenue growth

In the last few years OMGL has been witnessing a strong growth in its internationalbusiness and seen a 3-year revenue CAGR of 53%. During this period, internationalrevenues as a percent of total revenues increased to over 27% by FY11 as against15.5% in FY08. To diversify its revenue base it pitched for emerging markets such ascountries in South America, Africa and Asia. As at the end of 1HFY12, “outside India”revenues accounted for 38% of total revenues. Of this revenue, nearly 2/3rd comesfrom emerging markets. OMGL had invested heavily in these markets especially inLatAm region.

Since the past 18 months, OMGL has been making its largest ever investments tobuild VAS infrastructure on Telefonica LatAm networks. Starting with RBT and itsvariants, it plans to offer other VAS services such as music radio, soccer portal andvoice search. As at the end of Sep’11, total investments neared INR 2bn coveringeight LatAm countries, which account for 94% of the addressable subscriber reach inthat market. OMGL is also in the process of setting up infrastructure in another fiveLatAm countries bringing the total operational countries to 13. Initial results inLatAm look encouraging as OMGL is able to breakeven at cash levels in less than ayear of the total six year contract. Even though the current penetration levels inLatAm stood at ~3% (as against 20% in India), RBT pricing continue to be higher at 2-3x of that in India, which is a positive sign. For Sep’11 month, turnover from LatAmoperations stood at INR ~56mn, a jump of 40% from INR 40mn in June’11 month. Webelieve that at current price points these high growth rates may not be sustainable.However, considering low penetration levels and expected launch of other VASservices, we expect a 3-year CAGR of 30% with revenues reaching INR 1.5bn.

In Africa, OMGL is benefitting from existing relationship with Vodafone Essar andBharti Airtel. It has already started its operations in Egypt (has garnered over 30mnRBT users in a span of 3 months), South Africa and Tanzania. In Angola and Morocco,OMGL has also tied-up with other service providers. Further, to offer RBT and IVRservices with the local content, it has tied-up with Starfish Mobile, a leading contentaggregator with vast local portfolio. In Asia (outside India), it has presence in over 10countries covering entertainment, music and 3G segments. It is the leading VASservice provider in Bangladesh, where more than 1mn people are subscribed for itsmobile radio service. In China it has licensed 3G video software to three large handsetmanufacturers and has its video gateway deployed at two large operators. As aresult of these initiatives we estimate a 3-year revenue CAGR of 44% for outsideIndia operations.

Higher adj. EPS going forward is backed by available growth opportunities andincrease in EBITDA margins

For the next three years, topline growth for OMGL is largely expected to come fromgrowing international operations. Further, domestic revenues are likely to de-growin FY12 and may post a marginal growth for FY13. As a result, revenue frominternational operations to surpass 50% mark. We have assumed the positive impactof “video calling” in India to start from FY14. On this backdrop, for the 3-year endingFY14, we have arrived at a revenue CAGR of 16.2%.



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We expect EBITDA margins to be under pressure for FY12 at 21% as against 22.4% inFY11, largely due to operating losses incurred in the emerging markets during 1HFY12.Further, revised salaries coupled with negative growth in the Indian market to putpressure on the margins in the short term. However, with expanding subscriber baseLatAm has already witnessed a cash positive, due to which for the full year downsiderisk is partially reduced. We expect EBITDA margins to improve starting FY13 andincrease to 23% by FY14, backed by margin expansion in “outside India” and positiverevenue growth in the Indian market.

During FY12, income from sale of investments in Verse is expected to increase the PAT.On an adjusted basis, we expect EPS to be higher at INR 5.8 as against INR 5.3 in FY11.With expected increase in top line and EBITDA margins, adj. EPS is expected to reachINR 8.6 by FY14, a jump of 62% from FY11.

20.0

20.5

21.0

21.5

22.0

22.5

23.0

23.5

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

FY11 FY12E FY13E FY14E

Revenues EBITDA EBITDA margins

Revenue (INR mn), EBITDA and Margin trend

Source : Company, Unicon Research


9


Valuation

With higher penetration levels in LatAm and Africa and expected revival on thedomestic front we estimate a 3-year revenue and adj. EPS CAGR of 16.2% and 16.3%respectively. Further, divestment of remaining stake in Verse Innovation Pvt. Ltd. islikely to garner a pre-tax profit of INR 700 mn during FY12. Considering the abovecash inflows and the expected release of deposits worth INR 310mn as ONGL wonthe VAT case during FY12, we project net cash of per share of INR 14.6 (20% of marketcap) by the end of FY12. However, investors need not expect dividend in the nearfuture as the management is of the view that it require this cash to tap the availablegrowth oppurtunities.

Coming to stock performance, OMGL had underperformed the whole market andlost over 50% of its share price in the last one year. At CMP of INR 72.4, the share iscurrently trading at 15x 12-month historical PE (adj. EPS) as against a one-yearmedian PE of 18x. Based on this data, we value OMGL stock at 14.4x (a 20% discountto median PE) our estimated FY13 EPS of INR 6.5, thus giving a target price of INR93.6 and an upside potential of 29.3% in the next 12-18 months. Thus we recommendour investors to BUY OMGL shares.

Concerns

Applications such as Skype for “video calling” are a potential threat to MVAScompanies

With the fast changing technology and affordable 3G handsets, there is a possibilitythat Skype or any other free video service may overtake operator’s chargeable “videocall” service, thus hitting MVAS companies, for whom the benefit of “video call” willnot accrue.

High degree of revenue concentration with few customers and from single productposes significant risk

Loss of any of the top five customers of OMGL can have significant negative impacton its financial results as these customers contributed for 70% of FY11 revenues.Further, as one single product, RBT (including its variants), accounted for ~40% ofFY11 VAS revenues— emergence of superior competitor version, changes in consumerpreferences or acceptance of a new technology may lead to loss of customers.



10

Source : Company, Unicon Research

Summarised Financials and RatiosINR mn INR mn

INR mn

Income Statement FY10 FY11 FY12E FY13E FY14E Balance Sheet FY10 FY11 FY12E FY13E FY14E

Revenues 4544.0 5372.1 6155.2 7054.7 8428.1 Net Assets 3294.8 3776.5 3720.8 3611.6 3443.1

Other Op. Income 0.0 0.0 0.0 0.0 0.0 CWIP 92.1 144.3 150.0 150.0 150.0

Total Op. Income 4544.0 5372.1 6155.2 7054.7 8428.1 Investments 2046.3 2046.3 2046.3 2046.3 2046.3

Cost of Revenues 891.5 955.4 831.0 952.4 1137.8 Current Assets

% to Total Op. Exp. 0.2 0.2 0.2 0.2 0.2 Inventories 0.0 25.3 29.0 33.2 39.7

Total Op. Exp. 3704.1 4166.2 4860.9 5500.7 6487.3 Sundry Debtors 1689.5 2245.0 2769.8 3174.6 3792.7

EBITDA 840.0 1205.8 1294.3 1554.0 1940.8 Cash & Bank Balances 1883.1 912.3 2322.1 2660.5 3811.6

Other Current Assets 1820.9 2060.7 1789.3 1970.9 2247.4

Other Income 228.4 448.1 930.0 150.0 150.0 Current Liabilities

Depreciation 440.7 566.6 650.0 709.1 768.5 Current Liabilities 1331.3 1736.6 1846.6 2116.4 2528.4

EBIT 627.6 1087.3 1574.3 994.9 1322.3 Provisions 198.7 298.6 342.1 392.1 468.4

Net Working Capital 3863.5 3208.2 4721.6 5330.7 6894.4

Interest 2.7 8.2 18.0 17.0 16.0 Total assets 9296.6 9175.3 10638.6 11138.6 12533.8

PBT 624.9 1079.1 1556.3 977.9 1306.3 Share Capital 585.2 589.6 1179.1 1179.1 1179.1

Tax Provision 201.4 212.3 373.5 215.1 287.4 Reserves 6810.4 7732.4 8325.6 9088.3 10107.2

PAT 423.5 866.8 1182.8 762.7 1018.9 Non-Convertible Pref. shares 0.4 0.4 0.4 0.4 0.4

Def. payment liability 1720.4 457.2 457.2 457.2 457.2

Secured Loans 84.8 315.4 595.3 332.2 707.9

Unsecured Loans 2.1 2.3 2.6 3.0 3.6

Def. Tax Liabilities 93.7 78.4 78.4 78.4 78.4

Total Liabilities 9296.9 9175.6 10638.6 11138.6 12533.8

Cash flow Statement FY10 FY11 FY12E FY13E FY14E Key Ratios FY10 FY11 FY12E FY13E FY14E

PBT 624.9 1079.1 1556.3 977.9 1306.3 P rofitability & Margins (%)

Add: Depreciation 440.7 566.6 650.0 709.1 768.5 EBITDA Margin 18.5% 22.4% 21.0% 22.0% 23.0%

Interest -115.6 -58.9 18.0 17.0 16.0 EBIT Margin 13.8% 20.2% 25.6% 14.1% 15.7%

Less: Direct Taxes Paid -396.7 -342.5 -373.5 -215.1 -287.4 Pre-tax Margin 13.8% 20.1% 25.3% 13.9% 15.5%

Increase in Working Capital -59.2 -420.9 -103.6 -270.7 -412.6 PAT Margin 9.3% 16.1% 19.2% 10.8% 12.1%

Other Miscellaneous -0.5 -1.0 0.0 0.0 0.0 EPS 3.7 7.6 10.0 6.5 8.6

CF from Operations 493.7 822.5 1747.2 1218.2 1390.8 Growth % -50.4% 106.9% -33.7% -35.5% 33.6%

RoE 5.9% 11.0% 13.3% 7.7% 9.5%

(Pur) / Sale of Fixed Assets -880.5 -775.5 -600.0 -600.0 -600.0 RoCE 8.6% 13.5% 16.8% 9.6% 11.7%

(Pur.) / Sale of Investments -491.5 490.4 0.0 0.0 0.0

Other Miscellaneous 0.0 0.0 0.0 0.0 1.0 Leverage (x)

CF from Investments -1372.0 -285.1 -600.0 -600.0 -599.0 Debt / Equity 0.0 0.0 0.1 0.0 0.1

Interest Coverage 232.4 133.1 87.5 58.5 82.6

Change in Networth 193.2 19.7 0.0 0.0 0.0 Current Ratio 3.1 2.3 2.9 2.9 3.1

Change in Loan Fund -1.6 234.2 280.3 -262.8 376.7

Less: Interest Paid -2.7 -8.2 -18.0 -17.0 -16.0 Valuations (x)

Dividend Paid 0.0 0.0 0.0 0.0 0.0 EV/Sales 1.5 1.5 1.1 0.9 0.6

Other Miscellaneous 0.0 0.0 0.0 0.0 0.0 EV/EBITDA 8.0 6.6 5.3 4.0 2.8

CF from Fin. activities 189.0 245.7 262.3 -279.8 360.7 P/E 9.9 4.8 7.2 11.2 8.4

Net Change in Cash -689.4 783.1 1409.5 338.4 1152.5 P/BV 1.2 1.0 0.9 0.8 0.8


11

OnMobile Global Ltd.Research Recommendation 2010

Date of

RecommendationCompany Name Report Type Sector Recommendation

Recommended

P riceTarget

26-Dec-11 Piramal Glass Ltd. Company Report Glass Buy 92.0 143.0

24-Sep-11 Development Credit Bank Ltd. Initiating Coverage Banking Buy 46.0 64.0

15-Sep-11 Supreme Infrastructure India Ltd. Investment Idea Constructions Buy 230.0 280.0

30-Aug-11 Persistent Systems Ltd. Initiating Coverage Information Technology Buy 309.0 381.0

2-Aug-11 Tamil Nadu News Print Ltd. Initiating Coverage Paper & Paperboard Buy 117.0 161.0

18-Jul-11 KEC International Ltd. Initiating Coverage Power Transmission Buy 79.0 104.0

12-Jul-11 Visa S teel Ltd. Investment Idea Metal Buy 59.0 75.0

30-Jun-11 Tecpro Systems Ltd. Investment Idea Material Handling Buy 250.0 300.0

16-May-11 Camson Biotechnologies Ltd. Investment Idea Agri Biotech Buy 116.0 156.0

4-May-11 Ganesh Polytex Ltd. Initiating Coverage Waste Recycling Buy 62.0 102.0

28-Apr-11 CESC Ltd. Initiating Coverage Power Buy 311.0 411.0

1-Apr-11 Unity Infraprojects Ltd. Investment Idea Infrastructure Buy 69.0 86.0

31-Mar-11 Rolta India Ltd. Investment Idea IT / ITES Buy 139.0 191.0

29-Mar-11 West Coast Paper Mills Ltd. Investment Idea Paper & Paperboard Buy 77.0 95.0

7-Mar-11 Hindusthan National Glass & Industries Ltd. Initiating Coverage Glass Buy 212.0 351.0

28-Feb-11 Deepak Fertilisers & Petrochemicals Ltd. Initiating Coverage Fertilisers Buy 152.0 202.0

3-Feb-11 Ceat Ltd. Investment Idea Auto Ancillaries Buy 109.0 149.0

31-Jan-11 MIC Electronics Ltd. Initiating Coverage Led Display & Lighting Buy 31.6 51.0

12-Jan-11 Diamond Power & Infrastructure Ltd. Initiating Coverage Power Buy 193.0 257.0

31-Dec-10 Hathway Cable & Datacom Ltd. Initiating Coverage Media Buy 164.0 227.0

31-Dec-10 Jindal Poly Films Ltd. Investment Idea Packaging Accumulate 525.0 620.0

31-Dec-10 Allahabad Bank Investment Idea Banking Buy 225.0 304.0

22-Dec-10 Sasken Communication Tech. Ltd. Investment Idea IT / ITES Buy 168.0 226.0

30-Nov-10 Banco Product Initiating Coverage Auto Buy 93.0 149.0

30-Nov-10 Allcargo Global Logistics Investment Idea Shipping & Logistics Buy 155.0 233.0

18-Nov-10 Jyoti Structure Investment Idea Power Buy 137.0 171.0

16-Nov-10 Pennar Industries Investment Idea Steel Buy 49.0 63.0

3-Nov-10 HSIL Ltd. Initiating Coverage Building Product Buy 141.0 171.0

27-Oct-10 IDBI Bank Initiating Coverage Banking Buy 171.0 228.0

26-Oct-10 MSP Steel and Power Initiating Coverage Steel Buy 72.0 114.0

29-Sep-10 Nakoda Textiles Investment Idea Textiles Buy 15.0 23.0

16-Sep-10 Kajaria Ceramics Investment Idea Ceramic Tiles Buy 70.0 88.0

15-Sep-10 Gokul Refoils Investment Idea Food Processing Accumulate 97.3 109.0

14-Sep-10 Aqua Logistic Investment Idea Logistic Hold 59.1 60.8

31-Aug-10 Lakshmi Precision Screws Investment Idea Fastner Accumulate 79.8 91.8

27-Aug-10 BGR Energy System Initiating Coverage Power Buy 786.0 1020.0

30-Jul-10 Patel Engineering Initiating Coverage Infrastructure Buy 416.0 480.0

26-Jul-10 KPR Mills Ltd. Investment Idea Textiles Accumulate 156.0 181.0

14-Jul-10 IDBI Bank Investment Idea Banking Accumulate 125.0 142.0

9-Jul-10 Opto Circuit Initiating Coverage Healthcare Buy 243.0 293.0

26-Jun-10 BGR Energy System Ltd. Investment Idea Capital Goods Accumulate 697.0 820.0

23-Jun-10 Biocon Ltd. Investment Idea Pharmaceuticals Buy 321.0 387.0

19-Jun-10 Emmbi Polyarns Investment Idea Packaging Buy 15.6 26.0

18-Jun-10 Indian Bank Investment Idea Banking Buy 221.0 276.0

17-Jun-10 Diamond Power & Infrastructure Ltd. Investment Idea Power Ancillary Accumulate 196.0 226.0

12-Jun-10 Man Industries Investment Idea Steel Pipes Buy 85.0 102.0

5-Jun-10 Usher Agro Investment Idea Food Processing Buy 79.0 110.0

10-May-10 Greaves Cotton Investment Idea Construction Buy 67.0 82.0

30-Apr-10 Indraprastha Gas Ltd. Initiating Coverage Gas Distribution Buy 233.0 290.0



12

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Unicon Investment Ranking Methodology

Rating Buy Accumulate Hold Reduce Sell

Return Range >= 20% 10% to 20% -10% to 10% -10% to -20% <= -20%

ong term nvestment all onmobile global ltd....

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