J. P Morgan -India Mining DII vs. FII - Vol 14

8/12/2019 J. P Morgan -India Mining DII vs. FII - Vol 14

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Asia Pacific Equity Research23 April 2014

India Mining: DII vs. FII - Vol 14Both Locals and Foreigners Churn holdings acrossCement & Metals

Metals & Mining

Pinakin Parekh, CFA AC

(91-22) 6157-3588

[email protected]

Bloomberg JPMA PAREKH <GO>

J.P. Morgan India Private Limited

Dinesh S. Harchandani, CFA

(91-22) 6157-3583

[email protected]


Neha Manpuria

(91-22) 6157-3589

[email protected]


Daniel Kang

(852) 2800 8570

[email protected]

J.P. Morgan Securities (Asia Pacific) Limite

See page 7 for analyst certification and important disclosures, including non-US analyst disclosures.J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that tfirm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factormaking their investment decision.

FII Model Metals and Mining PortfolioBreak up (Mar-14)

Source: BSE India, JPM.

DII Model Metals and Mining PortfolioBreak up (Mar-14)

Source: BSE India, JPM

TATA

13%

JSW 8%SAIL 3%

SESA-

STLT

23%

JSPL

10%

BHUS

0%

NALCO

1%

NMDC

6%

HZ 2%

TATA

27%

JSW 3%SAIL 8%

SESA-

STLT

11%

JSPL

3%

BHUS

1%

NALCO

3%NMDC

16%

HZ 3%

March qtr data highlights churn by both locals and foreigners with the latterselling down in TATA & SAIL (which had seen shar p increase in holdings inDec) and increasing in JSW, SSLT & JSP, while locals sold down in JSW, SSLTand JSP and increased in SAIL, HNDL and COAL. In cement, FII increased inICEM, SRCM and MC, but sold down in ACC, while locals increased in ACCand UTCEM, and selling down in ICEM. Domestic MF holding reached multi

year low in stocks like TATA, HNDL. In our view holding levels are broadly below trend, and from here a demand improvement combined with a more benignregulatory environment is likely to result in further increase in institutionalholdings. Our top OWs remain TATA, SAIL, JSW, HNDL and SSLT.

TATA – FII levels decline, while DII up marginally: After the large increasein FII holding in the last qtr, TATA’s FII level for Mar-14 qtr declined 60bps.

However, DII holdings increased marginally (vs. declining trend in last 4 qtrs)as local MF holdings continued to decline and insurance cos. increased slightly.MF holding in TATA is at the lowest level since we have data from Mar-09.

SSLT – FII holdings increase, while DII levels decline: SSLT witnesseddecline in DII levels (-0.9% q/q) with lower holding by MFs (insurance wasmostly flat), while FII holding increased 0.7% q/q. Local insurance holding in

SSLT is at the lowest level since we have data from Mar-09.

HNDL – FII levels increase again and DII up 1.1%: FII holding for HNDLincreased marginally in Mar-14. However, DII levels increased sharply (up1.1% to14.4%) but MF holdings fell to their lowest levels.

NMDC, COAL, SAIL – Among the PSU, SAIL saw the decline in FII levels(~50bps), while DII levels increased ~30bps. FII levels in COAL was downslightly, while DII saw a ~50bps increase. NMDC saw marginal increase in FII

(+0.1%) and DII (+0.2% as MF decline offset by increase in insurance cos.holdings) levels.

JSW – Promoter holdings increased for 3rd qtr, while FII levels also increased0.6% q/q, DII levels fell (-0.8% q/q). Over the last 2 qrtrs, FII levels have

increased by ~2%, while promoter holdings over the last 3 qrtrs increased

by 2.6%. The stock has rallied ~112% from the lows of Aug-13.

JSPL (NC) – FII holdings increased 0.4% q/q, while DII holdings fell 0.6%,driven by MF levels declining to near multi year lows.

Cement – FII increasing in select names; DII increases in most names: FIIlevels declined marginally for most large caps except ACEM; however, mid-capnames (ICEM, SRCM, TRCL – all NC) witnessed 30-90bps increase. DIIholding for most companies increased, except for ICEM (NC) where DII

declined ~80bps. In ACC, DII levels increased for the 5th

straight qrtr and stoodat the highest level in 2.5 years. Cement stocks have rallied sharply over the lastfew months, though there is no perceptible change in institutional holdings insome of the large caps like ACEM and UTCEM. FII holding as % of free float

remains high for cement companies with the level at 62% for ACEM, 55%

for UTCEM, 50% for ICEM, 40% for ACC and 32% for MC. Cement

stocks are relatively illiquid compared to metals and have much larger

institutional holdings, especially FII v/s Metal equities.

http://injpm01.jpmchase.net/EQ/SHARE/RESEARCH/Abhay/Aluminium/arter%20data%20highlights%20churn%20by%20both%20locals%20and%20foreigners%20with%20the%20latter%20selling%20down%20in%20TATA%20and%20SAIL%20(which%20had%20seen%20sha





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Asia Pacific Equity Research

23 April 2014Pinakin Parekh, CFA(91-22) [email protected]

Metal & Mining

Table 1: FII ownership as % of outstanding

%

FII Mar-13 Jun-13 Sep-13 Dec-13 Ma

TATA 16.1 15.9% 16.2% 19.1% 18JSW 19.7 18.0% 17.2% 18.6% 19SAIL 4.8 5.2% 5.4% 6.3% 5

Hindalco (inc GDR) 32.9 34.0% 31.8% 34.0% 34Sesa Sterlite (inc. ADR) 27.2 27.3% 22.6% 22.3% 23Jindal Steel and Power 21.7 20.8% 21.3% 21.9% 22Bhushan 1.7 1.8% 1.8% 1.8% 1

Coal India 5.4 5.4% 5.5% 5.5% 5NALCO 4.2 4.2% 4.2% 4.1% 3NMDC 4.8 4.8% 5.3% 6.0% 6Hindustan Zinc 16.1 15.9% 16.2% 19.1% 18

Source: Company reports, BSE, NSE.

Table 2: DII ownership as % of out standing%

Domestic Institutions Mar-13 Jun-13 Sep-13 Dec-13 Ma

TATA 27.2 26.3% 26.1% 25.4% 25JSW 5.0 6.1% 6.3% 4.9% 4SAIL 11.9 11.3% 11.1% 10.6% 10Hindalco 15.5 15.6% 14.4% 13.3% 14

Sesa Sterlite 4.3 4.2% 8.1% 8.4% 7Jindal Steel and Power 6.8 6.7% 6.2% 4.7% 4Bhushan 0.8 2.8% 3.1% 3.9% 4Coal India 2.0 2.3% 2.4% 2.4% 2

NALCO 10.4 10.3% 10.1% 10.2% 10NMDC 11.5 11.5% 10.7% 10.5% 10Hindustan Zinc 27.2 26.3% 26.1% 25.4% 25


Table 3: DII ownership through Mutual Funds as % of out standing

%

DII-Mutual Funds Mar-13 Jun-13 Sep-13 Dec-13 Ma

TATA 3.4 3.2% 3.2% 3.2% 3

JSW 1.3 1.0% 1.2% 1.3% 1SAIL 0.9 0.7% 0.6% 0.4% 0Hindalco 2.0 1.2% 1.1% 0.7% 0Sesa Goa 0.3 0.2% 3.0% 3.4% 2

Jindal Steel and Power 2.8 3.4% 3.1% 2.1% 1Bhushan 0.0 0.0% 0.0% 0.0% 0Coal India 0.7 0.7% 0.5% 0.5% 0NALCO 0.0 0.1% 0.1% 0.2% 0

NMDC 2.6 2.5% 2.0% 1.3% 0Hindustan Zinc 1.2 1.1% 1.1% 1.0% 1


FII holding trend in M&M stocks

was mixed in Mar qtr with

decline in TATA (0.6%), SAIL

(0.5%), COAL, NALCO.

FII holding for most other M&M

stocks increased with 0.6-0.7%

increase in JSW and SSLT

DII holding increased across

most M&M stocks except JSW (-

0.8%), SSLT (-0.9%) and JSPL (-

0.6%). HNDL witnessed largest

increase q/q



3



Table 4: DII ownership through Insurance Cos as % of out standing

%

DII – Insurance Mar-13 Jun-13 Sep-13 Dec-13 MaTATA 23.3 22.5% 22.3% 21.8% 21JSWSAIL 7.2 7.2% 7.2% 7.2% 7

Hindalco 9.4 10.4% 9.6% 9.6% 9Sesa Sterlite (inc ADR) 2.2 2.2% 1.1% 1.1% 1Jindal Steel and Power 3.9 3.2% 3.0% 2.6% 2Bhushan 0.8 2.7% 3.1% 3.9% 3

Coal India 1.1 1.6% 1.8% 1.9% 2NALCO 6.9 6.9% 6.9% 6.9% 6NMDC 6.2 6.2% 6.2% 6.6% 7Hindustan Zinc 0.8 0.8% 0.8% 0.8% 0


Table 5: FII/DII Ownership multiple

x

FII/DII Mar-13 Jun-13 Sep-13 Dec-13 Ma

TATA 0.59 0.60 0.62 0.75 0.7JSW 3.91 2.95 2.74 3.76 4.6SAIL 0.41 0.46 0.49 0.59 0.5Hindalco (inc GDR) 2.12 2.18 2.20 2.56 2.3

Sesa Sterlite (inc ADR) 6.41 6.52 2.80 2.66 3.0Jindal Steel and Power 3.20 3.08 3.43 4.63 5.4Bhushan 2.10 0.65 0.60 0.46 0.4Coal India 2.72 2.33 2.34 2.25 1.8

NALCO 0.40 0.41 0.41 0.41 0.3NMDC 0.41 0.42 0.49 0.58 0.5Hindustan Zinc 0.72 0.79 0.94 1.09 1.1

Source: BSE, NSE, JPMorgan calculation

Figure 1: FII Model Metals and Mining Portfolio Break up

Source: Bloomberg and J.P. Morgan calculation.

TATA 13%

JSW

8%

SAIL 3%

SESA-STLT

23%

JSPL

10%

BHUS 0%

COAL 17%

NALCO 1%

NMDC 6%

HZ 2%

FII/DII ratio declined q/q for most

companies other than JSW,

JSPL, SSLT and HZL

(unchanged for NMDC q/q)

As evident from the FII

ownership pattern, COAL, JSPL,

SSLT, HNDL, and TATA account

for ~80% of the Metal & Mining

portfolio.



4



Figure 2: DII Model Metals and Mining Portfolio Break up

Source: Bloomberg and J.P. Morgan calculation.

Table 6: FII and DII ownership as % of Free float

%

FII of Free Float Mar-13 Jun-13 Sep-13 Dec-13 Ma

TATA 23 23% 24% 28% 2JSW 42 28% 27% 30% 3

SAIL 24 26% 27% 32% 2Hindalco (inc GDR) 48 50% 51% 55% 5Sesa Sterlite (inc ADR) 61 61% 54% 53% 5Jindal Steel and Power 53 51% 52% 54% 5

Bhushan 6 6% 6% 6%Coal India 54 54% 55% 55% 5NALCO 22 22% 22% 22% 2NMDC 24 24% 26% 30% 3

Hindustan Zinc 26 28% 33% 36% 3

DII of Free FloatTATA 40 38% 38% 37% 3

JSW 11 10% 10% 8%SAIL 59 57% 55% 53% 5Hindalco (inc GDR) 23 23% 23% 21% 2Sesa Sterlite (inc ADR) 9 9% 19% 20% 1

Jindal Steel and Power 17 16% 15% 12% 1Bhushan 3 9% 11% 14% 1Coal India 20 23% 24% 24% 2NALCO 55 54% 53% 54% 5

NMDC 57 57% 54% 52% 5Hindustan Zinc 36 35% 35% 33% 3

Source: BSE, NSE and J.P. Morgan calculation.

TATA 27%

JSW 3%

SAIL8%

SESA-STLT 11%

JSPL 3%

BHUS 1%

COAL 14%

NALCO 3%NMDC 16%

HZ 3%TATA is the largest stock

holding in the DII Metal & Mining

portfolio with share of 27%.

Other sizeable holdings are

NMDC, SSLT, COAL and HNDL.

FII holding as a % of stock’s free

float for most companies are

sizeable, except for BHUS. It is

above 50% for HNDL, SSLT, JSP

and COAL.

DII holding as a % of free float is

high for most PSU’s (except

COAL). DII holding as a % of free

float is also significant for TATA

at 37%.



5



Table 7: FII and DII Portfolio Composition in metals

%

FII Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 CurrentTATA 11% 10% 10% 13% 13 13%JSW 6% 7% 6% 7% 8 8%SAIL 3% 3% 2% 3% 3 3%

HNDL 13% 14% 16% 16% 15 17%Sesa -Sterlite 8% 8% 24% 24% 25 23%JSPL 15% 13% 10% 10% 10 10%BHUS 0% 0% 0% 0% 0 0%

COAL 21% 23% 23% 18% 17 17%NALCO 1% 1% 1% 1% 1 1%NMDC 5% 5% 5% 6% 6 6%HZ 1% 2% 2% 2% 2 2%

DII Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Current

TATA 26% 24% 23% 26% 27 27%JSW 2% 3% 3% 3% 3 3%

SAIL 10% 9% 7% 8% 8 8%HNDL 9% 9% 11% 9% 10 11%

Sesa -Sterlite 2% 2% 13% 14% 12 11%JSPL 7% 6% 5% 3% 3 3%

BHUS 0% 1% 1% 1% 1 1%COAL 11% 14% 15% 13% 14 14%NALCO 3% 3% 3% 3% 3 3%NMDC 18% 17% 17% 16% 17 16%

HZ 3% 3% 3% 3% 3 3%

Source: BSE, NSE and J.P. Morgan calculation.

Figure 3: FII/DII Ownership across metal stocks

Source: BSE India.

0.41 0.46 0.58 0.75

1.09

2.252.56 2.66

3.76

4.63

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

As evident from the FII

ownership pattern, COAL, JSPL,SSLT, HNDL, and TATA account

for ~80% of the Metal & Mining

portfolio.

TATA is the largest stock

holding in the DII Metal & Mining

portfolio with share of 27%.

Other sizeable holdings areNMDC, SSLT, COAL and HNDL.



6



CementTable 8: FII ownership as % of outstanding

%

FII Mar-13 Jun-13 Sep-13 Dec-13 Ma

ACC 20.0 19.5% 20.9% 20.0% 19 Ambuja 30.1 28.7% 30.1% 30.5% 30

UltraTech 20.6 20.7% 20.7% 21.0% 21Grasim 23.4 23.4% 22.9% 22.9% 22India Cements 31.6 32.8% 35.6% 35.1% 36Shree Cement 7.8 8.1% 8.2% 8.2% 8

Madras Cement 13.8 18.0% 18.0% 18.4% 18


Table 9: DII ownership as % of out standing

%DII Mar-13 Jun-13 Sep-13 Dec-13 Ma

ACC 10.6 11.7% 11.9% 12.9% 13 Ambuja 8.6 10.2% 9.6% 9.4% 9UltraTech 4.6 4.6% 4.8% 4.6% 4Grasim 15.4 15.4% 16.3% 16.0% 16

India Cements 15.8 14.8% 12.7% 12.7% 12Shree Cement 5.6 5.9% 5.7% 5.9% 5Madras Cement 17.9 17.6% 18.6% 18.0% 18

Source: Company reports, BSE, NSE

Table 10: FII/DII Ownership multiple

X

FII/DII Mar-13 Jun-13 Sep-13 Dec-13 Ma

ACC 1.88 1.67 1.75 1.55

Ambuja 3.52 2.80 3.15 3.25 3UltraTech 4.47 4.50 4.30 4.55 4Grasim 1.52 1.53 1.41 1.44India Cements 2.00 2.22 2.80 2.76 3

Shree Cement 1.38 1.38 1.43 1.39Madras Cement 0.77 1.02 0.96 1.02

Source: BSE, NSE, JPMorgan calculation

FII ownership declined for most

large caps (except ACEM).

However, trend improved 30-

90bps q/q for mid-cap cement

stocks

DII holding increased most

stocks except for ICEM (-0.8%

q/q).

FII/DII ratio has increased for

ACEM, SRCM, ICEM and Madras

Cement (Ramco) q/q. Ratiodecreased for ACC, UTCEM and

Grasim q/q.



7



Companies Discussed in This Report (all prices in this report as of market close on 22 April 2014)Hindalco Industries (HALC.BO/Rs144.85/Overweight), JSW Steel (JSTL.BO/Rs1,108.95/Overweight), Sesa Sterlite

(SESA.NS/Rs193.65/Overweight), Steel Authority of India Ltd (SAIL.BO/Rs70.80/Overweight), Tata Steel Ltd(TISC.BO/Rs420.85/Overweight)

Analyst Certification: The research analyst(s) denoted by an “AC” on the cover of this report certifies (or, where multiple researchanalysts are primarily responsible for this report, the research analyst denoted by an “AC” on the cover or within the documentindividually certifies, with respect to each security or issuer that the research analyst covers in this research) that: (1) all of the viewsexpressed in this report accurately reflect his or her personal views about any and all of the subject securities or issuers; and (2) no part ofany of the research analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations or viewsexpressed by the research analyst(s) in this report. For all Korea-based research analysts listed on the front cover, they also certify, as perKOFIA requirements, that their analysis was made in good faith and that the views reflect their own opinion, without undue influence orintervention.

Important Disclosures

Lead or Co-manager: J.P. Morgan acted as lead or co-manager in a public offering of equity and/or debt securities for Hindalco

Industries, Sesa Sterlite within the past 12 months.

Client: J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as clients: Tata Steel Ltd, Steel

Authority of India Ltd, Hindalco Industries, Sesa Sterlite, JSW Steel.

Client/Investment Banking: J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as investment

banking clients: Hindalco Industries, Sesa Sterlite.

Client/Non-Investment Banking, Securities-Related: J.P. Morgan currently has, or had within the past 12 months, the following

company(ies) as clients, and the services provided were non-investment-banking, securities-related: Tata Steel Ltd, Steel Authority ofIndia Ltd, Hindalco Industries, Sesa Sterlite, JSW Steel.

Client/Non-Securities-Related: J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as clients,

and the services provided were non-securities-related: Tata Steel Ltd, Steel Authority of India Ltd, Sesa Sterlite, JSW Steel.

Investment Banking (past 12 months): J.P. Morgan received in the past 12 months compensation from investment banking Hindalco

Industries, Sesa Sterlite.

Investment Banking (next 3 months): J.P. Morgan expects to receive, or intends to seek, compensation for investment bankingservices in the next three months from Tata Steel Ltd, Hindalco Industries, Sesa Sterlite.

Non-Investment Banking Compensation: J.P. Morgan has received compensation in the past 12 months for products or services

other than investment banking from Tata Steel Ltd, Steel Authority of India Ltd, Hindalco Industries, Sesa Sterlite, JSW Steel.

Company-Specific Disclosures: Important disclosures, including price charts, are available for compendium reports and all J.P. Morgan– covered companies by visiting https://jpmm.com/research/disclosures , calling 1-800-477-0406, or [email protected] with your request. J.P. Morgan’s Strategy, Technical, and Quantitative Research teams mayscreen companies not covered by J.P. Morgan. For important disclosures for these companies, please call 1-800-477-0406 or [email protected] .

https://jpmm.com/research/disclosures


mailto:[email protected]








8



Date Rating Share Price(Rs)

Price Target(Rs)

21-Sep-07 N 654.72 740.00

15-May-08 N 886.35 800.00

11-Aug-08 N 651.20 740.00

29-Aug-08 N 600.35 690.00

17-Oct-08 N 269.75 290.00

03-Dec-08 N 164.70 155.00

29-Jun-09 N 397.15 415.00

03-Sep-09 N 416.45 425.00

30-Oct-09 N 467.65 475.00

15-Jan-10 N 647.70 605.00

14-Nov-10 N 618.30 665.00

14-Jan-11 OW 637.55 820.00

23-May-11 OW 579.55 785.00

09-Sep-11 OW 476.90 685.00

11-Nov-11 OW 429.85 630.00

03-Feb-12 OW 475.90 605.00

19-Jul-12 OW 414.45 590.00

14-Aug-12 OW 406.10 580.00

09-Nov-12 OW 390.55 530.00

14-Feb-13 OW 376.00 505.00

20-May-13 OW 315.35 530.00

16-Jul-13 OW 251.60 455.00

14-Aug-13 OW 241.40 500.00

14-Nov-13 OW 357.75 525.00

07-Feb-14 OW 384.45 550.00


Price Target(Rs)

10-Jan-07 OW 84.90 125.00

11-Apr-07 OW 117.70 147.0031-Oct-07 OW 261.05 291.00

22-Jul-08 OW 125.65 195.00

16-Oct-08 OW 104.20 135.00

20-Nov-08 OW 58.65 81.00

29-Jan-09 OW 80.95 90.00

02-Jun-09 N 175.50 160.00

15-Jan-10 N 237.30 205.00

28-Jan-10 N 215.85 210.00

16-Mar-10 N 229.85 215.00

29-Oct-10 N 202.60 205.00

09-Sep-11 N 112.10 155.00

22-Nov-11 N 88.40 130.00

29-May-12 N 93.45 125.00

28-Sep-12 OW 85.65 130.0009-Nov-12 OW 83.50 120.00

03-Jun-13 OW 56.20 105.00

14-Aug-13 OW 44.30 90.00

0

254

508

762

1,016

1,270

1,524

Price(Rs)

Sep

06

Mar

08

Sep

09

Mar

11

Sep

12

Mar

14

Tata Steel Ltd (TISC.BO, TATA IN) Price Chart

N Rs690 N Rs475 OW Rs605OW Rs530OW Rs455OW Rs55

N Rs740N Rs155 N Rs425 OW Rs820OW Rs630OW Rs580OW Rs530OW Rs525

N Rs740N Rs800N Rs290 N Rs415N Rs605 N Rs665OW Rs785OW Rs685OW Rs590OW Rs505OW Rs500

Source: Bloomberg and J.P. Morgan; price data adjusted for stock splits and dividends.

Initiated coverage Sep 21, 2007.

0

82

164

246

328

410

492

Price(Rs)

Oct

06

Apr

08

Oct

09

Apr

11

Oct

12

Apr

14

Steel Authority of India Ltd (SAIL.BO, SAIL IN) Price Chart

OW Rs81 N Rs215

OW Rs147 OW Rs135 N Rs210 N Rs130 OW Rs120OW Rs90

Rs125OW Rs291OW Rs195OW Rs90N Rs160N Rs205 N Rs205 N Rs155 N Rs125OW Rs130OW Rs105


Initiated coverage Jan 10, 2007.



9




Price Target(Rs)

09-Nov-06 N 165.93 215.00

08-Feb-07 N 158.89 210.00

20-Oct-08 N 64.20 79.00

19-Nov-08 N 52.95 60.00

10-Jan-09 N 52.60 55.00

09-Apr-09 N 58.85 50.00

03-Aug-09 UW 108.20 78.00

11-Oct-09 UW 128.90 88.00

11-Dec-09 UW 143.00 102.00

15-Apr-10 UW 178.35 138.00

11-Nov-10 N 233.95 245.00

14-Apr-11 N 207.40 237.00

01-Jun-11 N 193.05 230.00

07-Oct-11 OW 125.90 170.00

09-Feb-12 OW 160.80 185.00

12-Jul-12 OW 123.85 170.00

14-Aug-12 OW 120.10 160.00

07-Jun-13 OW 102.85 150.00

13-Aug-13 OW 91.40 140.00

22-Sep-13 OW 113.95 155.00

12-Nov-13 OW 111.35 150.00

20-Feb-14 OW 97.35 145.00


Price Target(Rs)

30-Aug-12 OW 182.40 240.00

07-Oct-12 OW 170.95 220.00

30-Apr-13 OW 158.75 240.00

30-Jul-13 OW 125.40 225.00

25-Oct-13 OW 198.80 245.00

01-Nov-13 OW 198.10 240.00

0

71

142

213

284

355

426

Price(Rs)

Oct

06

Apr

08

Oct

09

Apr

11

Oct

12

Apr

14

Hindalco Industries (HALC.BO, HNDL IN) Price Chart

N Rs55 UW Rs102 OW Rs155

N Rs210 N Rs60 UW Rs88 N Rs230 OW Rs160 OW Rs140OW Rs1

s215 N Rs79N Rs50UW Rs78UW Rs138N Rs245N Rs237OW Rs170OW Rs185OW Rs170 OW Rs150OW Rs150


Initiated coverage Nov 09, 2006.

0

91

182

273

364

455

546

637

Price(Rs)

Oct

10

Jul

11

Apr

12

Jan

13

Oct

13

Sesa Sterlite (SESA.NS, SSLT IN) Price Chart

OW Rs245

OW Rs220 OW Rs225

OW Rs240 OW Rs240 OW Rs240


Initiated coverage Aug 30, 2012.



10




Price Target(Rs)

03-Mar-09 N 170.55 200.00

12-May-09 N 423.85 360.00

28-Jul-09 N 683.50 625.00

24-Oct-09 UW 814.40 675.00

15-Jan-10 UW 1179.85 880.00

27-Jul-10 UW 1171.00 980.00

26-Oct-10 UW 1239.25 1000.00

01-Feb-11 N 905.50 910.00

27-Jul-11 N 870.25 940.00

05-Aug-11 N 701.10 800.00

23-Nov-11 N 551.20 700.00

05-Jul-12 N 722.75 750.00

31-Jul-13 N 565.90 720.00

17-Sep-13 OW 653.60 850.00

29-Oct-13 OW 862.50 950.00

05-Jan-14 OW 994.05 1130.00

The chart(s) show J.P. Morgan's continuing coverage of the stocks; the current analysts may or may not have covered it over the entire period.J.P. Morgan ratings or designations: OW = Overweight, N= Neutral, UW = Underweight, NR = Not Rated

Explanation of Equity Research Ratings, Designations and Analyst(s) Coverage Universe:J.P. Morgan uses the following rating system: Overweight [Over the next six to twelve months, we expect this stock will outperform theaverage total return of the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] Neutral [Over the next six to twelvemonths, we expect this stock will perform in line with the average total return of the stocks in the analyst’s (or the analyst’s team’s)coverage universe.] Underweight [Over the next six to twelve months, we expect this stock will underperform the average total return ofthe stocks in the analyst’s (or the analyst’s team’s) coverage universe.] Not Rated (NR): J.P. Morgan has removed the rating and, ifapplicable, the price target, for this stock because of either a lack of a sufficient fundamental basis or for legal, regulatory or policy

reasons. The previous rating and, if applicable, the price target, no longer should be relied upon. An NR designation is not arecommendation or a rating. In our Asia (ex-Australia) and U.K. small- and mid-cap equity research, each stock’s expected total return iscompared to the expected total return of a benchmark country market index, not to those analysts’ coverage universe. If it does not appearin the Important Disclosures section of this report, the certifying analyst’s coverage universe can be found on J.P. Morgan’s researchwebsite, www.jpmorganmarkets.com.

Coverage Universe: Parekh, Pinakin: ACC Limited (ACC.BO), Ambuja Cements Limited (ABUJ.BO), Coal India (COAL.BO),Grasim Industries Ltd (GRAS.BO), Hindalco Industries (HALC.BO), JSW Steel (JSTL.BO), NMDC (NMDC.NS), National AluminiumCo Ltd (NALU.BO), Sesa Sterlite (SESA.NS), Steel Authority of India Ltd (SAIL.BO), Tata Steel Ltd (TISC.BO), UltraTech Cement Ltd(ULTC.BO)

J.P. Morgan Equity Research Ratings Distribution, as of March 31, 2014

Overweight(buy)

Neutral(hold)

Underweight(sell)

J.P. Morgan Global Equity Research Coverage 44% 44% 11%

IB clients* 58% 49% 40%JPMS Equity Research Coverage 45% 48% 7%

IB clients* 78% 67% 60%

*Percentage of investment banking clients in each rating category.

For purposes only of FINRA/NYSE ratings distribution rules, our Overweight rating falls into a buy rating category; our Neutral rating falls into a holdrating category; and our Underweight rating falls into a sell rating category. Please note that stocks with an NR designation are not included in the table

above.

Equity Valuation and Risks: For valuation methodology and risks associated with covered companies or price targets for coveredcompanies, please see the most recent company-specific research report at http://www.jpmorganmarkets.com, contact the primary analystor your J.P. Morgan representative, or email [email protected] .

0

388

776

1,164

1,552

1,940

2,328

Price(Rs)

Oct

06

Apr

08

Oct

09

Apr

11

Oct

12

Apr

14

JSW Steel (JSTL.BO, JSTL IN) Price Chart

N Rs625 N Rs910 OW Rs950

N Rs360UW Rs880UW Rs1,000N Rs800 OW Rs850

N Rs200UW Rs675UW Rs980 N Rs940N Rs700N Rs750 N Rs720OW Rs1,13


Initiated coverage Mar 03, 2009.

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Equity Analysts' Compensation: The equity research analysts responsible for the preparation of this report receive compensation basedupon various factors, including the quality and accuracy of research, client feedback, competitive factors, and overall firm revenues.

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"Other Disclosures" last revised April 5, 2014.

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J. P Morgan -India Mining DII vs. FII - Vol 14

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