Amp

AMP
ANTIQUES MORNING PRESENTATION
STRICTLY CONFIDENTIAL
4 July 2014
Market Snapshot
FROM THE RESEARCH DESK
Global Indices
Closing
% Chg
% YTD
INITIATING COVERAGE
Dow Jones
17,068
0.5
3.0
KPIT Technologies Limited

Back on the growth track; Buy
NASDAQ
4,486
0.6
7.4
FTSE
6,865
0.7
1.7
CAC
4,490
1.0
4.5
COMPANY UPDATE
DAX
10,029
1.2
5.0
Strides Arcolab Limited

High growth in unsold business
Russia
(3.6)
Global News
Dow Jones index rose above 17,000 for the first time following job report that
suggested hiring in the country accelerated last month. The jobs report is the
latest piece of data to show the US economy continues to improve steadily.
Japanese stocks dropped on Thursday, snapping a three-day winning streak
as investors took a breather from recent gains as they awaited the outcome of
the U.S. jobs data.
Sector & Corporate News
Sesa Sterlite Ltd: India's largest private iron ore miner, expects to resume
production in the country's Goa state in September. The miner expects its total
iron ore output at 9.29 MT in the current fiscal year to March 2015.
Sun Pharma: The Company is recalling 200 vials of the chemotherapy
drug gemcitabine in the United States due to a lack of assurance of sterility.
The voluntary recall was initiated in April and was classified by the FDA as
Class II, meaning that use of or exposure to the recalled drug may cause
temporary or medically reversible adverse health consequences.
SAIL: The new government could sell a 5% stake in the state-run SAIL in the
last week of this month. The marketing roadshows for the stake sale, valued
at about USD340mn at the current market price, will begin soon after the
presentation of the federal budget scheduled for July 10.
HDIL: The Company has sold its multiplex business, HDIL Entertainment which
runs 33 multiplexes under the brand name Kulraj Broadway, to Carnival
Films for INR1.05bn.
1,391
0.0
Bovespa
53,875
1.6
4.6
Nikkei
15,348
(0.1)
(5.1)
Hang Seng
23,531
(0.1)
1.0
2,063
0.2
(2.5)
Closing
% Chg
% YTD
25,824
(0.1)
22.0
7,715
(0.1)
22.4
501
(0.4)
23.1
Shanghai Composite
Indian Indices
Sensex
Nifty
MSCI India
CNX Midcap
11,360
0.1
40.7
BSE Smallcap
10,419
(0.1)
59.0
Flows (USDm)
FII
Prev. Day
MTD
(688)
(313)
12
(25)
Locals
Provisional flows
(USDm)
FIIs
159
Locals
Volumes
Cash (NSE + BSE)
F&O (net)
FII F&O
Net ($ mn)
(105)
USDbn
% Chg
3.5
(12.2)
17.5
(17.5)
Stock Fut
Index Fut
(113)
(45)
2.2
(1.0)
ADR/GDR Gainers
Last
% Chg
Tata Motors
42.1
2.4
8.9
2.3
Open Int (%)
Ranbaxy
ICICI Bank
50.8
1.3
Wipro
12.2
0.7
HDFC
49.7
0.5
ADR/GDR Losers
Last
% Chg
Reliance
33.9
(1.3)
ANTIQUE STOCK BROKING LIMITED
4 July 2014 | 2
Sectoral indices
Delivery Spike
Closing
% Chg
% MTD
% YTD
Company
BSE Auto
16,093
0.8
5.5
31.3
Adani
BSE Bank
17,695
(0.3)
1.3
36.1
Glenmark
BSE Cap Goods
Volume
Spike (%)
Chg (%)
779,758
358%
0.56
1,246,376
197%
5.64
16,674
(0.0)
2.9
62.4
BPCL
971,516
179%
(0.37)
BSE Cons dur
9,129
0.6
2.9
56.8
HCLTech
969,505
131%
(0.94)
BSE FMCG
6,793
0.3
1.7
3.4
Rel Capital
711,190
113%
0.44
BSE IT
9,294
0.3
(0.6)
2.3
Tata Motors
4,126,633
103%
3.06
2,521,591
99%
1.94
483,550
74%
0.68
BSE Health
11,763
1.1
2.6
18.0
Sun Pharma
BSE Metal
13,560
(0.5)
3.5
36.1
TCS
BSE Oil
11,065
(1.2)
(0.8)
25.2
GMR Infra
31,054,580
71%
(7.70)
BSE Power
2,350
(0.9)
1.3
38.1
JP Associate
14,368,813
45%
(4.64)
BSE PSU
8,688
(0.5)
0.6
47.0
BSE Realty
2,076
(1.5)
(0.1)
44.8
BSE TECK
5,254
0.1
(0.2)
4.0
Nifty Outperformers
Derivatives Update
Long Build Up
Company
Last
% Chg
% Chg OI
OI (in 000)
UCOBANK
113
BIOCON
543
5.8
5.1
25,072
3.9
10.6
ARVIND
5,404
244
3.7
9.7
7,542
BHARATFORG
672
1.2
14.6
3,054
Price
% Chg
% MTD
% YTD
Tata Motors Ltd
470
3.1
8.9
24.8
Short Build Up
Wipro Ltd
556
2.7
1.7
(0.7)
Company
Last
% Chg
% Chg OI
OI (in 000)
Sun Pharmaceutical Indus
707
1.9
2.7
24.6
GMRINFRA
31
(7.5)
46.4
229,760
Mahindra & Mahindra Ltd
1,236
1.3
7.7
30.9
JPASSOCIAT
72
(5.1)
15.4
151,616
Cipla Ltd
448
0.8
2.2
11.7
Lupin Ltd
1,082
0.7
3.2
19.1
SAIL
96
(3.3)
3.4
54,408
Tata Consultancy Svcs Ltd
2,418
0.7
(0.3)
11.3
276
(3.1)
9.2
6,240
Last
% Chg
% Chg OI
OI (in 000)
M&MFIN
Short Covering
Company
Nifty Underperformers
TATAMOTORS
469
2.8
(4.0)
20,312
AUROPHARMA
774
2.3
(3.6)
9,746
HDIL
103
1.4
(5.5)
33,120
IRB
252
1.0
(5.3)
12,956
Company
Last
% Chg
% Chg OI
OI (in 000)
33
(4.6)
(5.3)
188,445
Price
% Chg
% MTD
% YTD
2,588
(3.4)
(1.8)
24.7
Hindalco Industries Ltd
174
(2.5)
5.8
41.7
Tata Power Co Ltd
107
(2.3)
(0.9)
21.2
2,300
(2.1)
(0.7)
20.4
Profit Booking
418
(2.0)
(1.6)
44.7
Hero Motocorp Ltd
Bajaj Auto Ltd

Oil & Natural Gas Corp Ltd
Indusind Bank Ltd
573
(1.9)
0.3
36.3
UNITECH
Cairn India Ltd
361
(1.6)
(1.0)
11.6
IBREALEST
96
(3.9)
(5.6)
31,996
NHPC
27
(2.0)
(3.5)
74,232
576
(1.8)
(2.3)
5,381
INDUSINDBK
Bulk Deals
Date
Security Name
Client Name
Buy/Sell
Qty
Price
3-Jul-14
AmtekAuto-Roll Sett
Citigroup Global Markets Mauritius Private Ltd
SELL
2,070,947
255.93
3-Jul-14
Jagran Prakashan Limited
Jagran Prakashan Employee Welfare Trust
SELL
2,500,000
129.01
3-Jul-14
HDIL
Standard Chartered Bank (Mauritius) Limited
BUY
2,950,000
102.25
3-Jul-14
Amtek India Limited
Asia Investment Corporation Limited
SELL
2,000,000
101.01
3-Jul-14
Marico Kaya Entrprses Ltd
Indivest Pte Limited
SELL
403,310
224.30
3-Jul-14
Marico Kaya Entrprses Ltd
Jyoti Portfolio Limited
BUY
150,000
214.40
3-Jul-14
Aagam Cap
Ivory Consultants Pvt Ltd
BUY
146,605
174.87
3-Jul-14
Aagam Cap
Eversight Tradecomm Private Limited
SELL
117,000
174.23
3-Jul-14
Pokarna
Premier Investment Fund Limited
BUY
96,000
241.04
3-Jul-14
Asian Hotels (East) Ltd
Jesmin Investments Limited
SELL
85,000
208.20
3-Jul-14
Aries Agro Limited
Templeton Stock Growth Private Limited
SELL
135699
86.70
4 July 2014 | 3
Nifty
Nifty P/E
7900
Nifty P/B
24
3.6
22
7050
3.2
20
6200
18
2.8
16
5350
2.4
14
4500
12
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
2.0
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Source: Bloomberg
Sensex
FII Provisional Flows (INRcr)
26000
DII Provisional Flows (INRcr)

1,500
4,000
24000
22000
750
2,000
20000
18000
-750
16000
-2,000
Jul-13
14000
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Nov-13
Mar-14
Jul-14
-1,500
Jul-13
Nov-13
Mar-14
Jul-14
Source: Bloomberg
Economy, Money & Banking

Forex Rate
Commodities Update
Last
% Chg
% MTD
% YTD
Commodities
Last
% Chg
% MTD
INR~USD
59.7
(0.1)
0.7
3.4
Gold ($/Ounce)
INR~EUR
81.6
0.0
0.8
4.3
Crude Oil ($/Bl)
INR~GBP
102.4
0.1
0.3
(0.3)
% YTD
1,320
0.0
(0.6)
9.5
104
(0.0)
(1.3)
8.8
Aluminium ($/t)
1,907
0.5
2.7
8.7
Copper ($/t)
7,186
0.7
2.1
(2.6)
Bond Market
Last
Chg (bps)
MTD (bps)
YTD (bps)
Zinc ($/t)
2,232
(0.5)
0.8
8.7
10 Year Bond
8.7
(0)
(9)
(17)
Lead ($/t)
2,167
(0.6)
1.0
(1.1)
Interbank call
7.1
10
(150)
(165)
19,800
1.3
4.4
43.1
INR/USD
Nickel ($/t)
Gold and silver prices
70
68
66
64
62
60
58
Jun-13 Sep-13 Dec-13 Mar-14
Crude prices
2000
60
1500
45
1000
30
500
15
110
100
90
80
Jun-11
Jun-14
Jun-12
Jun-13
Go ld (LHS)
Jun-14
Silver (RHS)
70
Jun-11
Jun-12
Jun-13
Jun-14
Source: Bloomberg
Inflation vs 10 year yield

10
9
8
7
6
5
4
Sep-12
Nifty premium/discount
40
30
NSE volatility index (%)

20
35.1
27.9
23.0
24.7
21.3
17
16
20
10
Feb-13
Inflatio n (%)
Source: Bloomberg
Jul-13
Dec-13 May-14
10 Yr Yield (%)
19
18
15
0
27-Jun 30-Jun 01-Jul
02-Jul
03-Jul
3Jun
9Jun
15Jun
21Jun
27Jun
3Jul
INITIATING COVERAGE
Reco
: BUY
CMP
: INR170
Target Price
: INR230
KPIT Technologies Limited

Back on the growth track; Buy
Potential Return : 35%
Sagar Lele
+91 22 4031 3419

sagar.lele@antiquelimited.com
Pratish Krishnan
+91 22 4031 3427

pratish.krishnan@antiquelimited.com
Market data
Sensex
Sector
IT
Market Cap (INRbn)
33.7
Market Cap (USDbn)
0.6
25,824
O/S Shares (m)
194.9
52-wk HI/LO (INR)
190/117
Avg Daily Vol ('000)
569
Bloomberg
KPIT IN
Source: Bloomberg
Valuation
FY14
FY15e
FY16e
EPS (INR)
13.2
15.9
19.1
PE (x)
12.9
10.7
8.9
2.5
2.0
1.7
14.3
8.6
7.8
Dividend Yield (%) 0.6
0.8
0.9
P/BV (x)
EV/EBITDA (x)
Source: Bloomberg
Returns (%)
1m
3m
6m
12m
Absolute
44
Relative
(8)
(19)
We initiate coverage on KPIT Technologies with a Buy rating and target price of
INR230 per share. KPIT is a leading player in the automotive engineering space
making it well-positioned to capture growth opportunities from increasing
adoption of electronics in automobiles. We have a positive outlook on the
company led by: 1) Earnings CAGR of 20% over FY14-16e on account of strong
revenue growth and likely margin expansion, 2) Revenue CAGR of 14% (FY1416e), led by leadership in the automotive engineering space, stabilisation of
decline in top client (Cummins) and turnaround in SAP practice, 3) Increased
focus on key clients and re-organisation leading to improved client mining. The
management expects key accounts to contribute to 65-70% of its goal of USD
1bn in revenues by 2017, 4) Potential to expand margins, given tailwinds from
profitability in SAP SBU; higher offshoring; and increased utilisation.
The stock trades at 11x FY15e and 9x FY16e earnings, which is ~15% discount
to its peers. In its peer set, it is the third largest player in terms of revenues
(after Mphasis and Mindtree). However, it trades at a FY16e EV/Sales of
1.2x, which is lower than Mphasis (1.5x) and Mindtree (1.6x). Post a dismal
FY14, margins and earnings are set to improve and we see scope for rerating. We recommend a Buy with a target price of INR230 per share.
Turnaround in top client and SAP SBU
In FY14, KPIT's YoY revenue growth slowed to 8% from 20% CAGR over FY08-13. It saw a
5% decline in revenues from its top client and 10% dip from the SAP SBU. Together these two
areas constitute to 42% of revenues. Going ahead, revenues from Cummins are likely to
stabilise as the company's outlook improves. On the SAP front, KPIT has successfully aligned
its services with SAP's transformed product mix and has closed multiple deals recently, showing
signs of recovery. We expect the SBU to grow at a 10% CAGR over FY14-16e.
Well positioned in the automotive engineering space
KPIT provides product engineering services for every sub-domain of automobiles, from invehicle networks to powertrain. The total spend on electronics in vehicles is expected to rise to
~30% in the next five years from 12-13%. Outsourcing in this area is still nascent at 8% (rest
in-house) and is growing faster by 250-300bps than captives. KPIT's leadership will aid its
growth in this segment. This SBU constitutes for 25% of revenues and we expect organic
CAGR of 21% over FY14-16e.
See significant tailwinds to margins
In FY14, the SAP SBU reported negative margins of 5-6%. With this business turning around,
we expect 5% EBITDA margins in the SBU for FY15e. In addition, the margin levers available
are: 1) Likely increase in offshoring to 52-53% in 2-3 years from 46% in FY14; 2) Likely higher
utilisation to ~74% in FY15e from 71% in FY14; 3) Employee pyramid rationalisation; and 4)
likely growth in IP revenues with monetisation of products like Revolo.
Valuations and outlook
Source: Bloomberg
Shareholding pattern
Promoters
22%
FII
33%
DII
7%
Others
38%
Source: Bloomberg
Price performance vs Nifty

160
140
120
100
80
Jun-13
The stock trades at 11x FY15e and 9x FY16e. Considering its likely recovery and positioning
compared to midcap peers, we see potential for a re-rating. We are valuing the company at
12x FY16e earnings, which is a 20% discount to Persistent. We are valuing midcap IT stocks
at a discount of 15-30% to Tier-I vendors. We initiate a Buy on KPIT with a target price of
INR230 per share.
Key financials
Year ended March (INRm)
2014
2015e
2016e
313
410
445
505
579
15,000
22,386
26,940
30,305
34,711
2,166
3,641
4,208
4,845
5,875
14.4
16.3
15.6
16.0
16.9
PAT
Source: Bloomberg
2013
Revenues (INRm)
EBITDA margin (%)
KPIT Tech
2012
Revenues (USDm)
EBITDA
Oct-13 Feb-14
4 July 2014 | 4
1,450
2,367
2,515
3,005
3,595
Jun-14
Net profit margin (%)
9.7
10.6
9.3
9.9
10.4
NIFTY
EPS
8.1
12.1
13.2
15.9
19.1
Source: Company, Antique
4 July 2014 | 5
Investment thesis
KPIT is an IT services and product engineering company, which specialises in automotive and
transportation, manufacturing and energy, and utilities. It provides product engineering services
for every sub-domain of an automobile, including in-vehicle networks, body electronics, safety,
infotainment, powertrain, vehicle diagnostics, etc. It works with 10 of the top 12 automotive
original equipment manufacturers in the world. It is also a leading provider of application
services for Oracle and SAP. From FY08-14, its revenues have organically and inorganically
grown at 20% CAGR.
We initiate coverage on KPIT with a Buy rating and target price of INR230 per share, an
upside of 23% from current levels. From FY08 to FY13, KPIT saw revenue and earnings
CAGR of 23% and 35%, respectively. However, it faced some headwinds in FY14, which
slowed revenue and earnings growth to 8% and 9%, respectively. Going forward, we expect:
1. The company's performance is likely to pick-up, with the pain areas behind it. Top client
revenues (which declined 5% in FY14) are likely to stabilise while the SAP SBU (which
declined 10% in FY14) is likely to turnaround.
2. Leadership in the fast-growing automotive product engineering market (25% of revenues)
will help boost growth. We expect organic growth from automotive and engineering to
be 14% for FY15e and 16% for FY16e.
3. Changed organisation structure, sales approach, and focus areas to penetrate clients
wider and deeper are likely to support growth in the coming years. The company intends
to mine ~50 strategic and potential strategic accounts in order to reach its goal of USD1bn
in revenues by 2017.
4. The company has potential to expand margins given the turnaround in its SAP business,
prospective offshoring, higher utilisation, and pyramid rationalisation.
5. The stock is trading at 11x FY15e and 9x FY16e, which is at a ~15% discount to its
peers. Going forward, likely recovery in problem areas and higher margins, and improving
growth trajectory are likely to lead to a re-rating.
Key assumptions
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15e
Revenue (USDm)
147
174
154
222
313
410
445
505
579
YoY growth (%)
43%
19%
-12%
44%
41%
31%
8%
13%
15%
EBITDA margin (%)
13%
23%
22%
15%
14%
16%
16%
16%
17%
EBITDA margin change (bps)
-270
1055
-105
-703
-60
183
-74
46
94
EPS (INR)
6.56
8.41
10.80
5.49
8.08
12.07
13.21
15.94
19.07
YoY growth (%)
20%
28%
28%
-49%
47%
49%
PE (x)
FY16e
9%
21%
20%
12.87
10.66
8.91
Target PE (x)
12.00
YoY growth (%)

Integrated Enterprise Solutions
49%
22%
16%
13%
16%
Auto and Engineering
36%
22%
11%
23%
17%
SAP
38%
24%
-10%
8%
12%
32%
7%
11%
Business Transformation Unit

Valuations attractive, re-rating likely

KPIT under-performed its peers throughout the last 12 months
On account of headwinds from Cummins and the SAP SBU, KPIT saw a decline in revenue
growth rate, and thus profitability. Revenue growth declined to 8% YoY in FY14 from 31% in
FY13. EBIT margin fell to 13.5% in FY14 from 14.2% in FY13. The stock has underperformed
the NSE IT index by 12% over the last 12 months. It has under-performed by 27% and 44%
relative to largecap and midcaps vendors, respectively. It has also under-performed its peers
throughout the year.
4 July 2014 | 6
Reduced under-performance in recent times

Indices
Large caps
1 month
3 months
6 months
12 months
Nifty
15
21
35
NSE IT Index
50
TCS
10
10
61
Infosys
-1
-9
34
Wipro
-3
-4
52
HCL Tech
14
85
12
11
11
94
-2
13
Tech Mahindra
Mid caps under coverage
Other mid caps
Mphasis
Hexaware
-1
15
83
KPIT
-1
-4
38
Persistent
11
13
122
MindTree
30
36
18
120
Cyient
30
95
NIIT Tech
16
22
60
58
83
Polaris
Source: Bloomberg
Expect valuation gap with peers to narrow

KPIT's valuation (one-year forward) discount vs its peers has gradually reduced as its
performance has been robust from FY08-13. During this period, KPIT saw revenue and
earnings CAGR of 23% and 35%, respectively. This strong outperformance led to a valuation
premium of 6% in FY13 from a discount of 55% in FY08. However, in FY14, KPIT again
started to trade at a discount (of ~12%) as compared to peers, as its performance was
hampered. Going forward, as KPIT's performance revives; we expect the valuation gap with
its peers to narrow.
KPIT's valuation discount to its peers
100%
80%
60%
40%
20%
0%
-20%
-40%
-60%
-80%
-100%
FY08
FY09
Mindtree
FY10
Persistent
FY11
FY12
Hexaware
FY13
Mphasis
FY14
Cyient
YTD
NIIT Tech
Source: Bloomberg, Antique
Attractive valuations compared to peers

With revenue CAGR of 14% and earnings CAGR of 20% over FY14-16e, KPIT is well-positioned
amongst its peers. Trading at 11x FY15e earnings and 9x FY16e earnings, it is attractive at
current levels. Moreover, its trading at an EV/Sales of 1.2x FY16e, which is lower compared
to 1.6x for Mindtree. In its peer-set, considering it is the third largest player in terms of
revenues (after Mphasis and Mindtree), we see further scope for re-rating.
4 July 2014 | 7
Midcap synopsis
Recommendation
Target Price
CMP
KPIT
Mindtree
Cyient
NIIT Tech
Hexaware
Mphasis
Persistent
BUY
na
na
na
SELL
BUY
BUY
230
na
na
na
125
520
1,400
170
864
653
449
152
425
1,087
35%
na
na
na
-18%
22%
29%
FY13
410
436
345
372
364
1,025
238
FY14
445
502
363
382
388
420
274
FY15e
505
589
429
419
397
1,020
329
Upside/ (Downside) %
Revenue (USD)
FY16e
579
694
480
467
445
1,143
387
CAGR (%) (FY13-15e)
10.9%
16.2%
11.5%
6.2%
4.4%
na
17.6%
CAGR (%) (FY14-16e)
14.1%
17.7%
15.0%
10.6%
7.1%
na
18.8%
15%
Revenue YoY (USD)

FY14
8.3%
15.1%
5.3%
2.7%
6.4%
na
FY15e
13.5%
17.4%
17.9%
9.7%
2.5%
na
20%
FY16e
14.7%
17.9%
12.1%
11.5%
12.0%
12%
18%
FY13
3,641
4,864
3,416
3,380
4,074
10,335
3,349
FY14
4,183
6,100
4,101
3,631
5,123
4,778
4,262
FY15e
4,845
6,635
4,779
4,155
4,885
11,044
5,217
FY16e
5,875
8,224
5,369
4,750
5,484
12,997
6,171
FY14
15.5%
20.1%
18.6%
15.8%
22.4%
18.2%
25.5%
FY15e
16.0%
19.0%
18.6%
16.5%
20.2%
17.9%
26.2%
FY16e
16.9%
20.0%
18.6%
16.9%
20.4%
18.8%
26.4%
2,276
3,393
2,311
2,184
3,276
7,437
1,876
EBITDA (INRm)
EBITDA %
PAT (INRm)
FY13
FY14
2,490
4,508
2,660
2,382
3,791
3,472
2,493
FY15e
3,005
4,664
3,474
2,644
3,512
8,160
3,209
FY16e
3,595
5,798
3,956
3,022
4,088
9,686
3,957
EPS (INR)
FY13
12
41
21
36
11
35
47
FY14
13
54
24
38
13
15
62
FY15e
16
55
31
43
12
39
80
FY16e
19
68
35
49
14
46
99
9%
31%
15%
7%
16%
na
33%
21%
2%
29%
13%
-7%
na
29%
YoY %
FY14
FY15e
FY16e
20%
23%
15%
14%
16%
19%
23%
CAGR (%) (FY13-15)
15%
15.5%
21.8%
10.2%
4%
na
31%
CAGR (%) (FY14e-16e)
20%
12.0%
21.9%
13.7%
4%
na
26%
Valuations
EV/ Sales
FY14
2.1
1.6
1.3
1.0
1.9
1.6
2.3
FY15e
1.4
1.9
1.3
1.0
1.8
nm
1.8
FY16e
1.2
1.6
1.1
0.9
1.6
1.5
1.4
EV/ EBITDA
FY14
14.5
8.0
7.1
6.2
8.3
9.1
8.9
FY15e
8.7
10.1
6.8
6.2
8.7
nm
6.7
FY16e
8.0
8.1
6.1
5.5
7.8
8.5
5.2
FY15e
10.7
15.6
21.3
10.4
12.8
10.9
13.5
FY16e
8.9
12.7
18.5
9.1
11.0
9.2
11.0
PE (x)
Source: Company, Bloomberg, Antique
4 July 2014 | 8
Recent downgrades hold scope for re-rating as performance improves

Historically, the company has provided annual revenue and net profit guidance. While it has
missed its revenue guidance twice: FY09 (by 6-8%) and FY14 (by 4-7%), it has met its profit
guidance in all years. The street has downgraded FY15 and FY16 earnings estimates by ~79% over the last six months. We are slightly ahead of street estimates and see scope for
upgrades, with KPIT's performance reviving in FY15e.
Lower street estimates in recent times
25
20
15
10
5
FY11
FY15e
FY12
FY16e
FY13
Antique FY15e
Jun-14
Mar-14
Dec-13
Sep-13
Jun-13
Mar-13
Dec-12
Sep-12
Jun-12
Mar-12
Dec-11
Sep-11
Jun-11
Mar-11
Dec-10
Sep-10
Jun-10
Mar-10
Dec-09
Sep-09
Jun-09
FY14
Antique FY16e
Re-rating likely given an improvement in performance

Although KPIT saw its FY14 revenue growth decline to 8% YoY from 31% in FY13, and FY14
EBIT margin dip to 13.5% from 14.2% in FY13, it sustained its base valuations. At present, it
is trading at 11x and 9x FY15e and FY16e earnings, respectively. Revenue and earnings
CAGR of 14% and 20% over FY14-16e, respectively, marks a significant improvement from
FY14. The recovery and likely growth hold scope for a potential re-rating. We value the stock
at 12x FY16e earnings, targeting the stock at INR230 per share.
KPIT's P/E band
200
180
FY09 revenue guidance missed
160
Low guidance for FY14 (13-16%)
140
120
100
Valuations
sustained
despite
relatively
lower
performance
in FY14
80
60
40
20
KPIT
3X
5X
7X
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Apr-12
Jul-12
Oct-12
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Jan-10
Apr-10
Jul-10
Oct-10
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Oct-07
Jan-08
Apr-08
Jul-08
Apr-07
Jul-07
9X
11X
Revenue CAGR of 14% over FY14-16e
EPS CAGR of 20% over FY14-16e
20%
Persistent
Mindtree
Cyient
KPIT
18%
16%
14%
12%
Polaris
10%
NIIT Tech
8%
Hexaw are
6%
4%
2%
30%
EPS CAGR (FY14-16e) (%)
Revenue CAGR (FY14-16e) (%)
4 July 2014 | 9
Persistent
25%
Cyient
KPIT
Polaris
20%
15%
NIIT Tech
Mindtree
10%
5%
Hexaw are
0%
0%
0.0
5.0
10.0
0.0
15.0
5.0
PE (x)
10.0
15.0
PE (x)
Turnaround likely in the pain areas of FY14

Over the last six years, KPIT has seen 20% revenue CAGR. However, revenue growth slowed
in FY14, wherein revenues were USD445m. It fell shy of its annual guidance of USD465475m (13-16% growth), having grown 8% over FY13. The drag came in because of a 5%
decline in revenues from its top client - Cummins (17% of revenues), and a decline of 10%
from its SAP practice (25% of revenues). In effect, the company saw a decline in 42% of its
business. Going forward, we expect: 1) Decline from Cummins to stabilise and grow
moderately in FY15e; and 2) Revenues from SAP to turnaround on account of re-alignment of
KPIT's SAP offerings, with SAP's changed product mix and strong deal closures. This is likely
to accelerate revenue growth. We expect 13% and 15% revenue growth for FY15e and
FY16e, respectively.
Growth slows to 8% YoY in FY14
FY14 revenues from Cummins declines by 5%
500
50%
450
40%
400
90
40%
80
30%
70
20%
350
30%
300
250
20%
50
200
10%
40
150
0%
100
-10%
50
-20%
0
FY08
FY09
FY10
FY11
Revenue (USDm) - LHS

FY12
FY13
FY14
YoY growth (%) - RHS
60
10%
0%
-10%
30
20
-20%
10
-30%
-40%
0
FY09
FY10
FY11

FY12
FY13
FY14
YoY grow th (%) - RHS
FY14 revenues from SAP SBU declines by 10%
Strong FY14 growth in manufacturing and energy and utilities

32%
35%
30%
4 July 2014 | 10
27%
30%
25%
25%
20%
20%
16%
16%
15%
11%
15%
10%
5%
10%
5%
-3%
0%
0%
-5%
-5%
-10%
-10%
-15%
-10%
Integrated
Enterprise
Solutions
Auto and
Engineering
SAP
-15%
-14%
-20%
BTU
Automotive & Manufacturing

Transportation
Energy and
Utilities
Others
a) Stabilisation of top client

Cummins, KPIT's top client, contributed 17% of total revenues in FY14, a decline of 5% YoY.
It also saw a declining revenue growth rate in 2012 and 2013. Cummins faced significant
headwinds, leading to cost pressures and budget cuts. However, outlook on the performance
of Cummins for coming years is positive, and business from the client is expected to stabilise
from 2HFY15e onwards. This would help KPIT achieve higher growth in FY15e over FY14.
The management is expecting the Cummins account to grow in single-digits in FY15e.
5% decline in FY14 revenues from Cummins
Cummins revenue composition (%)
90
40%
80
30%
70
20%
30
60
10%
50
0%
40
-10%
30
20
-20%
10
-30%
70
-40%
FY09
FY10
FY11

FY12
FY13
FY14
Automotive and engineering
Integrated Enterprise Solutions (Oracle)
Improved outlook for Cummins

Cummins saw positive growth in 2010 and 2011. However, 2012 and 2013 were dull
years as revenues declined 4% in 2012 and remained flat in 2013. The company underwent
substantial cost rationalisation during this period. The KPIT management said the cut was
deeper in its IT services spend compared to engineering services. In 2013, its research and
development expense, as a percentage of sales, dropped marginally to 4.1% from 4.2% in
2012. However, the street has a positive outlook on Cummins and expects revenue growth of
9% and 11% for 2014 and 2015, respectively. KPIT expects growth from Cummins to
bounceback by 2Q or 3Q of FY15e.
Bounceback anticipated in Cummins

25,000
20,000
Minor cut in 2013 R&D expense
36%
22%
15%
10%
9%
11%
15,000
-4%
40%
800
30%
700
20%
10%
0%
0%
-10%
-25%
0
Revenue (USDm)
3.5%
3.1%
2.9%
3.0%
2.5%
2.5%
2.0%
200
-30%
4.5%
4.0%
300
100
1.5%
1.0%
2007
YoY grow th (%)
Source: Bloomberg
4.1%
3.5%
3.4%
500
-20%
2007 2008 2009 2010 2011 2012 2013 2014 2015e
4.2%
600
400
10,000
5,000
4 July 2014 | 11
2008
2009
2010
R & D expense (USDm)
2011
2012
2013
R & D expense (% of sales)
Source: Bloomberg
b) Turnaround in SAP SBU

KPIT's revenues from the SAP SBU (25% of revenues) saw a 10% decline in FY14. This
occurred after two consecutive years of strong growth: 38% in FY12 and 24% in FY13. SAP
has been seeing major transformation over the last couple of years. The products SAP acquired
have been growing at a faster rate, thus changing KPIT's business mix significantly. While
the enterprise resource planning products continue to maintain momentum, products around
human resource management, customer relationship management, and supplier relationship
management were quickly moving to the cloud.
KPIT had to align its offerings in line with the changes at SAP. This involved investments in
training, resources, and capabilities, which led to a decline in revenues till its services were
aligned with the changes at SAP. Moreover, there were delays in the closure of deals in the
SBU (~USD12m), which impacted the company's revenue growth. The business is now picking
up and is expected to see a revival in FY15e. We expect SAP revenues to grow 8% and 12%
over FY15e in FY16e, respectively.
Decline in revenues from SAP SBU since the last six quarters
60%
50%
40%
30%
20%
10%
0%
-10%
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
-20%
Integrated Enterprise Solutions
Auto and Engineering
SAP
To align its offerings with the changes at SAP, KPIT undertook steps that included:
1. Expanded geographically, and made significant investments in Asia and Europe to
increase footprint
2. Focused on increasing its footprint in the support and maintenance part of the SAP SBU.
KPIT has been winning large and long-term on-premise application management services
deals in North America and Europe. It is hoping to convert some of its large deal wins in
4 July 2014 | 12
Asia to AMS on-premise deals. It intends to receive 60-70% of AMS revenues from ~20%
currently, which is more profitable and stable
3. Offerings specific to the energy and utilities vertical turned mature, with KPIT seeing
increased traction in this space, due to the go-to-market strategy with SAP
4. Added a team of 25 SuccessFactors' certified consultants, under a business transfer
agreement with an SF specialist company: Learn2Perform. As per the deal, all employees
and customers of L2P were transferred to KPIT, thus adding growth capability in the SAP
SBU
5. Incurred heavy investments in the cloud aspect of SAP. This area has been seeing
tremendous traction. KPIT expects 4x growth from the cloud business in FY15e
6. Invested in the High-Performance Analytic Appliance suite, where SAP is seeing significant
progress. It is beginning to see increased traction here, and expects it to auger well
going forward.
SAP SBU back on track led by strong deal flows
For FY15e, KPIT aims to: 1) Concentrate on profitability in the SAP SBU; and 2) Usher growth
back. In FY15e, it expects to return to modest profitability in the SAP SBU. Over the last few
quarters, it has progressed in terms of deal flows. These include:
1. Closed orders worth USD50m and built a healthy pipeline in the SAP SBU during 3QFY14
2. KPIT won over 17 deals in 4QFY14, with a total value of USD78.5m (on-premise and
cloud together). The company is seeing very high traction in the geographies of US and
Asia-Pacific
3. AMS support services have been a major area of focus, where KPIT has landed seven
multi-year, multi-million dollar deals to support SAP and other technologies for large
customers
Leadership in the fast-growing automotive and engineering segment

KPIT is a leading player in the A&E space. It works with 10 of the top 12 global OEMs in
developing automotive solutions in multiple areas. In India, KPIT is the largest player in this
space. It had revenues of USD110m (25% of its total revenues) in FY14. The automotive
product engineering space is fast-growing. Being a market leader in the segment, KPIT will
benefit from this growth trend. We expect KPIT's A&E revenues to grow organically by 14%
and 16% during FY15e and FY16e, respectively.
Expect 14% CAGR in A&E over FY14-16e
160
40%
140
35%
120
30%
100
25%
80
20%
60
15%
40
10%
20
5%
0%
FY12
FY13
FY14
Auto and Engineering revenue (USDm) - LHS

FY15e
FY16e
4 July 2014 | 13
Opportunity in the A&E space

The automotive electronics market refers to the embedded systems space, wherein electronic
control units are installed in a vehicle for purposes ranging from entertainment to powertrain
and chassis control. As many as 100 ECUs are used in a vehicle, connected via several invehicle networks. KPIT develops solutions in the areas of AUTOSAR and in-vehicle networks,
body electronics, chassis and driver assistance systems, engineering design, functional safety,
infotainment, instrument clusters, powertrain, and vehicle diagnostics. This is a fast growing
area on account of: 1) Increasing R&D spend in the auto industry; 2) Higher
usage of electronics in vehicles; 3) Growing offshoring in the automotive
product engineering space; 4) Consolidation of ECUs by selling to OEMs;
and 5) Standardisation of product development and higher adoption of
AUTOSAR (Automotive Open System Architecture).
1. Increasing R&D expenditure in the automotive space
R&D expenditure has been growing at a fast pace since the last few years. While global
auto sales grew at a CAGR of 5% over 2010 to 2013, R&D expenditure of 25 top automobile
OEMs saw a CAGR of 9% from 2010 to 2013. This signifies increased investments in product
development, which would auger well for KPIT.
R&D expenditure growing faster than auto sales
78,000,000
5% CAGR in global auto sales
76,000,000
70,000
65,000
74,000,000
9% CAGR in R&D expenditure

60,000
72,000,000
70,000,000
55,000
68,000,000
50,000
66,000,000
45,000
64,000,000
62,000,000
40,000
2010
2011
Global auto sales (LHS)
2012
2013
R&D expenditure (USDm) (RHS)
Source: Bloomberg
Automobile R&D a major component in key geographies

Contribution of North Am erica to
R&D
9%
Contribution of Japan to R&D
5%4%
3%
8%
7%
35%
13%
Contribution of Europe to R&D
10%
54%
17%
49%
43%
20%
23%
ISV
Automotive
Aerospace
Source: Zinnov Research
Semiconductor
Telecom
Others
Automotive
Aerospace
ISV
Telecom
Semiconductor
Others
Automotive
Semiconductor
Consumer electronics
4 July 2014 | 14
2. Increasing use of electronics in vehicles

The usage of electronics in vehicles has been increasing at a rapid rate. According to the
KPIT management, overall spend on electronics has reached 12-13% of the car's total value
from ~5% in the past. In the next five years, the management expects 35% of the vehicle's
value to be electronics. Each car and truck built in North America now contains over USD3,200
worth of electric equipment, up from just under USD1,500 a decade ago. A multi-fold increase
is expected over the next five years. Worldwide sales of automotive electronic technology are
expected to soar to USD274bn in 2017 from USD189bn in 2012. This is likely to put KPIT in
a sweet spot, being the segment leader.
3. Offshoring of product engineering in the automotive space is growing
250-300bps faster than captives
The management said 92% of the product engineering in the automotive space is undergone
in captives. Only 8% of the total spend is outsourced. While the total spend in this space is
increasing, the pie of outsourcing is growing at a faster rate. Outsourcing of product engineering
in the automotive space is growing faster than captives by 250-300bps. This provides players
like KPIT a bigger opportunity in the already fast-growing segment.
4. Consolidation of ECUs
The number of ECUs in a car has nearly doubled in the last 10 years. A car is likely to have
up to 100 separate ECUs, with separate software, CPUs, code bases, and multi-layered
runtime environments. Consolidation of ECUs would result in increased efficiency in terms of
space, power usage, and hardware and software integration. The industry is moving towards
consolidation, with increased standardisation. For instance, the GENIVI alliance has been
developed to reduce complexity from the development process, by creating standards for
Linux-based in-vehicle infotainment systems. This approach reduces the overall cost of
development, minimises project risks, and timelines. This is likely to result in higher growth and
benefits accruing out of supplying solutions to OEMs directly. At present, 60% of KPIT's
customers in the A&E space are OEMs, while 40% are Tier I and II suppliers. Going forward,
KPIT intends to focus on direct supplies to OEMs to reap the benefits of higher opportunities
from consolidation of ECUs.
KPIT's customer composition in the A&E SBU
40%
60%
OEMs
Tier-I and II suppliers
5. Standardisation of product development and higher adoption of AUTOSAR

At the onset of the 90s, vehicle manufacturers developed software standards for electronics
such as OSEK (open systems and their interfaces for the electronics in vehicles) to ease
management of the increasingly complex bus systems in vehicle electronics. Later, AUTOSAR
was introduced as embedded electronics and software systems attained a new level of
complexity, and required a wider reaching model of standardisation. The adoption of
4 July 2014 | 15
AUTOSAR has been fast growing as:

1. Increases scalability to different vehicle and platform variants
2. Allows transferability of functions throughout the network
3. Enables OEMs to drive the process of software development, rather than it being led by
suppliers
4. OEMs can share intellectual property with multiple suppliers over a standardised platform
5. Helps saves costs and time for implementation
6. Enables maintenance, software updates, and upgrades
Higher adoption of AUTOSAR will lead to increased outsourcing of automotive software
product development, implementation, and testing. KPIT offers migration solutions, end-toend development, and integration of microcontroller abstraction layers (MCAL), Bootloader,
and OEM-specific modules with the basic software. It has successfully implemented AUTOSAR
and related services in 20 OEMs and Tier Is, and has leadership position in this arena. With
increasing adoption of AUTOSAR, KPIT is likely to benefit.
AUTOSAR software architecture
Source: Company
Focus on client mining likely to propel growth

KPIT has acquired a lot of accounts in the last two-to-three years through its go-to-market
strategy in the areas of SAP, Oracle, and A&E. However, these accounts are under-penetrated.
It also offers potential for KPIT to cross-sell its offerings and grow its existing customer base. In
order to mine these accounts, it has put in place a vertical-specific reorganisation of functions
and a strategy to focus on key clients. With these initiatives being worked on, KPIT's revenue
per client in its top 10 accounts grew 29% in FY14, while its total revenues grew 8%. Going
forward, these initiatives are likely to yield results in increasing KPIT's revenues from existing
accounts.
Vertical-oriented reorganisation put in place
For the past three years, KPIT has focused on three industry verticals: automotive, manufacturing,
and energy and utilities. However, organisationally, the company was structured by its offerings:
Engineering (A&E SBU), Oracle (IES SBU), SAP (SAP SBU), and consulting (BTU SBU). The
offering-led approach caused under-penetration of services among customers across verticals.
4 July 2014 | 16
For example, a domain expert from the A&E SBU would sell solutions but would be unable to
extend it to application services. This left customers under-penetrated, with gaps in service
provided to accounts. This is evident from the high concentration of certain services in KPIT's
verticals, leaving potential areas for growth.
KPIT: Vertical/SBU split
FY14 revenues (USDm)
Automotive
Manufacturing
A&E
55%
10%
0%
SAP
15%
30%
60%
IES
30%
60%
40%
100%
100%
100%
Total
Energy and utilities
To ensure consolidated offerings, KPIT reorganised its business to focus on verticals. With this,
sales and account management functions were organised by verticals and backed by offerings
provided by SBUs. Recently, the company hired some high-level people to strengthen its
vertical leadership. KPIT is in the process of reorganising its structure, and expects full
implementation to be complete by 1QFY15.
Focus on key accounts
With the new organisation in place, KPIT has identified ~26 strategic accounts and ~20
potentially strategic clients, which are aligned with the verticals. It will focus on ~50 top
accounts to penetrate deeper, by partnering in multiple areas. In the last two-to-three years,
it has acquired a lot of accounts through its go-to-market strategy in the areas of SAP, Oracle,
and A&E. Now, the whole focus will be to bring collaboration and cross-selling across business
units. To aid this process, it also formed the Business Transformation Unit, which will bring
together the strengths of all SBUs and create larger deals for strategic accounts. According to
the management, these accounts have the potential of contributing 65-70% of the USD1bn
revenue goal that KPIT aims to achieve by 2017.
Faster growth from key customers in FY14
KPIT's focus on penetrating clients deeper can be seen as growth in its Top 10 clients and star
customer accounts were more in FY14 than overall revenues. In FY14, while overall revenues
grew 8% YoY, revenues from the Top 10 clients, excluding Cummins, grew 29%. The same
from star customers (excluding Cummins) grew 14%. We have excluded Cummins as the
account witnessed a 5% decline in FY14.
Faster growth in Top 10 accounts (excluding Cummins)
than overall growth
160
140
120
100
80
60
40
20
0
29%
Faster growth in star customer accounts (excluding Cummins)

than overall growth
50%
200
40%
30%
150
50%
40%
14%
20%
100
10%
8%
FY09
FY10
FY11
FY12
FY13
0%
-10%
50
-20%
20%
10%
8%
0%
-10%
FY14
-20%
FY09
Revenue from top 10 clients (ex. Cummins)

YoY grow th in top 10 clients, ex. Cummins (%)
FY10
FY11
FY12
FY13
FY14
Star customer revenues (ex. Cummins) (USDm)

Grow th in star customer revenues (ex. Cummins)
Revenue grow th (%)
Revenue grow th (%)

30%
Increasing revenue per client

Increasing client penetration can also be seen from the rising average size of its key clients.
Revenue per client of the Top 10 customers (excluding Cummins) grew 29% to USD14.9m in
FY14 from USD11.5m in FY13. This is much faster than the 8% revenue growth, indicating
high focus on its key clients and validating potential results of its main account strategy.
4 July 2014 | 17
Revenue per client for Top 10 clients grew 29%

44%
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
33%
50%
40%
29%
30%
20%
10%
0%
17%
3%
-7%
-10%
-20%
FY09
FY10
FY11
FY12
FY13
FY14
Revenue per client (top 10, ex. Cummins) (USD'000)

Grow th in revenue per client (top 10, ex. Cummins) (%)
Grow th in non top-10 clients (%)
Potential margin expansion

In FY14, lower revenue growth was accompanied by a 55bps decline in EBIT margins to
13.6%. This occurred on account of losses at the operating level in the SAP SBU on delays in
closure of three deals by up to four months, cost overruns in certain projects, higher investments
and training costs, and increase onsite bench. In FY14, EBITDA for the SAP SBU stood at a
negative 5-6%. From FY13, profitability in the SAP SBU swung negatively by ~10% from 45% last year. This is much lower than historical levels and compared to other SBUs. Going
forward, KPIT can see margin expansion resulting out of: 1) Turnaround in SAP profitability;
2) Higher offshoring; 3) Increased utilisation; and 4) Pyramid rationalisation.
Margins likely to trend higher
6,000
20%
5,000
18%
16%
4,000
14%
3,000
12%
2,000
10%
1,000
8%
6%
0
FY08
FY09
FY10
FY11
EBIT (INRm) - LHS
FY12
FY13
FY14
FY15e
FY16e
EBIT margin (%) - RHS
1. Turnaround in SAP SBU profitability

The SAP SBU saw negative EBITDA margins of 5-6% in FY14, a sharp decline compared to
4-5% in FY13. Towards FY14-end, margins in the SAP SBU had come close to breaking even.
Going forward, margin improvement is likely to take place given: 1) Profitability in the SAP
SBU is the management's top priority; 2) Volumes in the business are perking up; 3) The
management intends to take the onsite-offshore ratio in the SBU to 70:30/75:25 in FY15e
from 85:15 in FY14. We expect 5% EBITDA margins for the SAP SBU in FY15e.
SBU margins for FY13 and FY14
EBITDA margin (%)
SBU
FY13
FY14
A&E
24-25
22-23
IES
18
18-19
BTU
nm
19-20
SAP
4-5
(5-6)
Source: Company
4 July 2014 | 18
2. Higher offshoring likely going forward

KPIT has a high level of onsite work in its SAP SBU, and elevated level of offshore work in its
A&E SBU. While offshore revenues constitute 15% of SAP SBU revenues, 75% of A&E revenues
are offshore. At the company level, FY14 offshore revenues stood at 46%. Going forward,
overall offshoring is expected to increase to 52-53% as:
1) A&E is expected to grow faster than other SBUs, leading to increased composition of
offshore revenues. We expect growth in A&E to be 23% for FY15e and 17% for FY16e,
which is higher than the overall revenue growth of 13% for FY15e and 15% for FY16e.
2) KPIT's FY15 priority is to increase profitability in the SAP SBU. As part of this effort, the
company intends to increase offshoring in the SAP SBU to 25-30% in FY15e from 15% in
FY14.
Offshore component in SBUs
Offshore (%)
FY14
In 2-3 years
A&E
75
75
SAP
15
25-30
IES
59
70
Total
46
52-53
Source: Company
3. Headroom left on utilisation

On account of delays in deal closures, shifts in technology, higher bench, and increased
people on training in the SAP SBU, KPIT's utilisation levels saw a decline through FY13 and
FY14. Onsite utilisation declined to 90% in 4QFY14 from 95% in 4QFY12. Offshore utilisation
fell to 71% in 4QFY14 from 74% in 4QFY12. With a bounce back anticipated in the SAP SBU
and increased traction across all other SBUs, the company sees headroom for expansion
here. It intends to take its onsite and offshore utilisation level to over 90% and ~74%, respectively.
Decline in FY14 utilisation levels
76%
96%
75%
94%
74%
92%
73%
90%
72%
71%
88%
70%
86%
69%
68%
84%
4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14
Onsite - LHS
Offshore - RHS
4. Pyramid rationalisation
Of KPIT's total hiring, 50% constitutes freshers hired in the last three years. This has led to
significant pyramid rationalisation in recent years. As of FY14, 35% of KPIT's employee base
was in the within three year work experience bracket. This number is expected to go higher,
as KPIT intends to maintain 50% of its hires as freshers for the next two-to-three years. This
would lead to further margin expansion going forward.
4 July 2014 | 19
Financials
Profit and loss account (INRm)
Cash flow statement (INRm)
Year ended 31 Mar
2012
2013
2014 2015e
Revenues
15,000
22,386
26,940
30,305
34,711
PBT
Expenses
12,834
18,745
22,732
25,460
28,837
Depreciation & amortisation
2,166
3,641
4,208
4,845
5,875
EBIDTA
Depreciation
EBIT
Other income
445
472
540
606
694
1,721
3,170
3,669
4,239
5,181
138
117
-78
224
93
Interest expense
Profit before tax
Taxes including deferred taxation
Extra ordinary items & others
Profit after tax
2016e
Interest expense
Interest/dividend received
Tax paid
(Purchase)/sale of Investments
Income from investments
CF from investing activities
Inc/(dec) in share capital
(998)
(941)
(1,227)
1,203
1,292
1,981
3,352
(609)
(701)
(696)
(1,073)
(1,030)
(2,285)
(2,875)
413
(915)
(66)
66
72
77
93
(2,828)
(3,503)
(283)
(1,911)
(1,003)
65
1,662
1,160
1,332
1,177
(667)
(552)
(141)
(273)
(258)
(231)
(211)
126
(1,841)
1,210
2,726
(921)
(898)
(762)
1,587
2013
357
387
387
387
387
Reserves & surplus
7,094
10,246
12,364
15,369
18,964
CF from financing activities
Net worth
7,451
10,633
12,751
15,756
19,351
Net cash flow
Debt
2,139
3,213
4,390
3,722
3,171
375
143
233
273
313
Capital employed
9,965
13,988
17,374
19,752
22,835
Gross fixed assets
3,822
4,335
5,273
6,073
7,073
Accumulated depreciation
2,155
2,573
3,112
3,719
4,413
Year ended 31 Mar
2012
2013
Net assets
1,668
1,762
2,161
2,355
2,661
Revenue
52.0
49.2
20.3
12.5
14.5
958
1,498
1,182
1,928
2,158
EBITDA
45.9
68.1
15.6
15.1
21.3
Deferred tax liability & others
Capital work in progress & others

Investments
2016e
Inc/(dec) in debt
(268)
1,008
2012
Share capital
2014 2015e
(93)
(1,468)
Capital expenditure
Balance sheet (INRm)
211
-
1,468
19.1
231
(1,055)
1,227
15.9
258
(1,784)
941
13.2
142
(1,995)
766
12.1
694
73
5,063
(1,083)
437
8.1
606
(870)
CF from operating activities
540
(Inc)/dec in working capital
211
3,595
472
5,063
445
(77)
231
3,005
2016e
4,232
122
4,232
258
2,515
3,430
(72)
3,334
-13
2014 2015e
(104)
142
2,367
2,847
(54)
3,146
100
2013
1,886
(204)
73
1,450
2012
Other adjustments
1,786
Recurring EPS
Year ended 31 Mar
Year ended 31 Mar
Dividends & interest paid

Others
(610)
426
88
(829)
Opening balance
2,080
1,467
1,921
1,908
1,079
Closing balance
1,470
1,893
2,009
1,079
2,666
2014 2015e
2016e
Growth indicators (%)
582
2,154
1,741
2,656
2,722
PAT
53.0
63.3
6.3
19.5
19.6
3,623
4,423
5,994
5,994
5,994
EPS
47.2
49.5
9.4
20.7
19.6
6,450
8,010
10,156
10,850
13,533
Debtors
4,233
4,673
6,743
7,473
8,369
Cash & bank balances
1,473
1,921
1,908
1,079
2,666
Year ended 31 Mar
2012
2013
2014 2015e
2016e
745
1,417
1,505
2,299
2,499
PE
21.0
14.1
12.9
10.7
8.9
Current liabilities & provs
3,315
3,860
3,860
4,032
4,234
P/BV
4.1
3.0
2.5
2.0
1.7
Creditors
1,757
1,904
1,021
1,143
1,295
EV/EBITDA
7.9
18.6
14.3
8.6
7.8
Other liabilities & provisions
1,559
1,956
2,839
2,889
2,939
EV/Sales
1.7
2.8
2.1
1.4
1.2
Dividend Yield (%)
0.4
0.5
0.6
0.8
0.9
2014 2015e
2016e
Goodwill
Current assets, loans & adv
Loans & advances and others
Net current assets
3,135
4,151
6,296
6,818
9,299
Application of funds
9,965
13,988
17,374
19,752
22,835
Valuation (x)
Financial ratios
Per share data
Year ended 31 Mar
2012
2013
Year ended 31 Mar
RoE (%)
19.5
22.3
19.7
19.1
18.6
RoCE (%)
21.7
26.0
24.2
24.5
25.7
No. of shares (m)

BVPS (INR)
CEPS (INR)
DPS (INR)
2012
2013
2014 2015e
2016e
180
188
188
188
188
41.4
56.4
67.7
83.6
102.7
Debt/Equity (x)
0.3
0.3
0.3
0.2
0.2
EBIT/Interest (x)
23.5
22.4
14.2
18.4
24.6
11.4
21.6
19.4
19.8
28.6
0.7
0.9
1.1
1.3
1.6
2014 2015e
2016e
Margins (%)
Year ended 31 Mar
2012
2013
EBIDTA
14.4
16.3
15.6
16.0
16.9
EBIT
11.5
14.2
13.6
14.0
14.9
9.7
10.6
9.3
9.9
10.4
PAT
Source: Company Antique
4 July 2014 | 20
COMPANY UPDATE
Current Reco
: BUY
Previous Reco
: BUY
CMP
: INR673
Target Price
: INR861
Strides Arcolab Limited

High growth in unsold business
Potential Return : 28%
Strides has received a series of ANDA approvals like Methoxsalen (soft gel
approval), Pramipexole, and Imiquimod (first dermatology approval) in the
last one month. The recently approved ANDAs, along with other pending
ANDAs, should result in an EBITDA CAGR of 31.9% from FY14-16e for its
unsold Pharma business. The recently awarded tenders for Arthemether and
Lumefantrine (A+L) should also be meaningful driver in the medium-term.
We are raising our target price by 21% to INR861/share, incorporating Lovaza
and Avodart in our estimates, and also raising target multiple to 12x from
11x (inline with other midcap).
Hitesh Mahida
+91 22 4031 3429

hitesh.mahida@antiquelimited.com
Consistent ANDA launches to deliver high growth

Market data
Sensex
25,824
Sector
Pharma
Market Cap (INRbn)
40.0
Market Cap (USDbn)
0.7
O/S Shares (m)
59.6
52-wk HI/LO (INR)
675/239
Avg Daily Vol ('000)
265
Bloomberg
STR IN
FY15e
FY16e
56.1
Source: Bloomberg
Valuation
FY14
EPS (INR)
16.4
37.8
PE (x)
29.6
12.8
8.6
2.6
2.1
1.7
12.7
9.4
6.0
P/BV (x)
EV/EBITDA (x)
The company has already received two positive approvals - Methoxsalen and Imiquimod after the recent USFDA clearance for its Bangalore and Italian plants. Strides's partners are
also gaining share in older products like Vancomycin and Ergocalciferol, which have not
seen any new competition despite over two years of genericisation, due to complexity in
development and manufacturing. With recent approvals and pending ANDAs like Combivir,
Tacrolimus, Lovaza and Avodart the US business is on a high growth phase. The company
also has three more soft gel filings and one more dermatology filing pending approval.
Majority of the products in these two segments enjoy limited competition. Lovaza launch in
FY16 will be a game changer, with total brand sales of USD1.1bn and only 4-5 players.
A+L tender to provide further fillip
It has won tenders for A+L from global humanitarian funds. The overall market size of A+L is
close to USD350m. Even a 15% market share could result in annualised sales of USD20m for
the company. It had started supplies only in 2HFY14, and the drug had generated sales of
less than USD8m in FY14.
SoTP-based target price
Sr.
Particular
Source: Bloomberg
1.
Pharma business 12x FY16e
Returns (%)
2.
PV of USD100m kept in escrow account for tax purpose (INR per share)
3.
Value of contingent payment from Mylan on resolution of warning letter

(INR per share) (deducted for DDT)
Dividend Yield (%) 106.0
1m
3m
6m
12m
Absolute
27
59
84
77
Relative
22
39
48
31
INR/share
673
69
237
4.
Assuming 50% probability of receipt of contingent payment (INR per share)
119
Source: Bloomberg
5.
Target price (1+2+4)
861
Shareholding pattern
6.
Total excluding contingent payment (1+2)
Promoters
28%
Source: Antique
FII
49%
DII
3%
Others
20%
Key financials
Source: Bloomberg
Year ended 31 Mar
Price performance vs Nifty
Revenue (INRm)
150
130
110
90
70
Jun-13
CY11
CY12
FY14
FY15e
FY16e
25,245
23,073
13,410
13,818
17,951
4,878
5,353
2,234
2,847
4,057
19.3
23.2
16.7
20.6
22.6
1,976
3,061
946
2,225
3,298
EPS (INR)
34.2
53.0
16.4
37.8
56.1
P/E (x)
14.2
9.1
29.6
12.8
8.6
ROCE
9.2
9.5
4.3
12.8
17.7
15.4
22.3
4.7
20.5
25.2
EBITDA (INRm)
EBITDA Margin (%)
PAT (INRm)
Oct-13 Feb-14
Strides Arcolab
Source: Bloomberg
Jun-14
NIFTY
742
ROE
Year ending changed to March from FY14. FY14 is a 15-month period.
4 July 2014 | 21
Key ANDA launches expected from Strides Arcolab

Brand name
Launch
status
Methoxsalen
Launched
Lovaza
FY16
Avodart
Combivir
Brand
size
(USDm)
Number
of
players
Expected
sales
(USDm)
Expected
EBITDA
(USDm)
Comments
14
Soft gel product. Only generic to receive approval
1,100
22
Teva has already launched in Apr-14 since it was

awarded FTF. Apotex has settled for 1QCY15 launch.
Par is other known filer
Nov-15
580
Patent expires in Nov-15
2QFY15
275
Tacrolimus
2QFY15
955
10
Calcitriol
2QFY15
30
Soft gel
Strides Arcolab's partners Alvogen and Paddock have gained positive market share in Vancomycin and Ergocalciferol
Oral Vancomycin TRx share
Akorn
12%
Ergocalciferol TRx share
Others
12%
Others
2%
Paddock
14%
Teva
43%
Alvogen
48%
Prasco
17%
Breckenridge
15%
Actavis
21%
Rising
16%
4 July 2014 | 22
Financials
Profit and loss account (INRm)
Revenue Mix (INRm)
Year ended 31 Mar
CY11
CY12
FY14 FY15e
Net Sales
25,245
23,073
13,410
13,818
17,951
Generic
3,560
4,218
5,490
8,792
Material costs
12,638
9,980
7,147
7,600
9,711
Branded
2,180
2,736
3,283
3,940
Employee cost
2,801
2,809
1,572
1,575
1,993
Institutional
3,520
4,446
5,045
5,219
Other Expenses
4,929
4,931
2,457
1,796
2,190
Total
9,260
11,400
13,818
17,951
FY14 FY15e
FY16e
Operating expenses
FY16e
20,367
17,720
11,175
10,972
13,894
EBITDA
4,878
5,353
2,234
2,847
4,057
Depreciation
1,043
1,095
565
507
593
EBIT
3,835
4,258
1,669
2,339
3,464
526
583
602
663
729
Interest
1,903
1,934
1,089
220
70
PBT
2,459
2,907
1,183
2,782
4,123
387
1,021
3,245
556
825
2,072
3,072
946
2,225
3,298
95
11
Net profits
1,976
3,061
946
2,225
3,298
AEPS
34.2
53.0
16.4
37.8
56.1
Other income
Tax
APAT
Minority interest & prior period items
Share capital
Reserves & surplus
Net Worth
Minority interest
Total borrowings
Other liabilities
FY13
Year ended 31 Mar
CY12
584
588
FY14 FY15e
588
588
FY16e
588
13,131
19,674
10,265
12,490
15,788
13,715
20,263
10,853
13,078
16,376
465
719
719
719
719
25,664
14,161
2,711
1,611
511
93
287
287
287
287
Total liabilities
39,937
35,429
14,570
15,696
17,894
Gross block
16,622
18,239
6,239
6,739
7,879
FY16e
CY11
CY12
Net profit
1976
3061
946
2225
3298
Depn and w/o
1043
1095
565
507
593
Change in working cap
-5354
-445
748
607
90
Others
1933
8670
CF from operations (a)
6,481
1,344
763
2,126
3,801
Capital expenditure
6,720
508 (13,853)
545
1,243
Chg in investments and others

CF from investing (b)
Free cash flow (a+b)
Debt
CY11
FY14 FY15e
Cash flow statement (INRm)
(18)
4,430
(6,565)
(8,065)
46,714
(545)
(1,243)
(83)
(6,722)
47,478
1,581
2,559
(11,504) (11,449)
(1,100)
(1,100)
0
Equity raised/(repaid)
Balance sheet (INRm)

Year ended 31 Mar
Year ended 31 Mar
Dividend (incl. tax)
5,566
136
137
34,744
(6,446)
21,541
CF from financing (c)
(1,017)
9,900
(46,193)
(1,100)
(1,100)
Net chg in cash (a+b+c)
(1,100)
3,179
1,284
481
1,459
FY14 FY15e
FY16e
Others
Growth indicators (%)

Year ended 31 Mar
CY11
CY12
Revenue
48.9
(8.6)
(41.9)
3.0
29.9
EBITDA
49.4
9.7
(58.3)
27.4
42.5
-4,572
-4,976
-1,541
-2,048
-2,641
PAT
62.2
54.9
(69.1)
135.1
48.2
12,050
13,264
4,699
4,692
5,239
AEPS
62.2
54.9
(69.1)
130.9
48.2
3,523
2,414
562
607
709
20,046
16,919
16
16
16
4430
4430
4430
CY11
CY12
FY14 FY15e
FY16e
18,921
15,378
11,323
12,301
15,429
14.2
9.1
29.6
12.8
8.6
Inventories
4,799
4,423
1,797
1,974
2,564
2.0
1.4
2.6
2.1
1.7
Debtors
5,384
4,832
3,618
3,937
5,016
10.5
7.7
12.7
9.4
6.0
Cash and bank balances
2,597
1,657
2,942
3,422
4,881
EV/Sales (X)
2.0
1.8
2.1
1.9
1.3
Other current assets
1,597
1,872
374
374
374
Dividend Yield (%)
0.4
0.4
106.0
CY11
CY12
FY14 FY15e
FY16e
15.4
22.3
4.7
20.5
25.2
RoCE
9.2
9.5
4.3
12.8
17.7
Debt/Equity (x)
1.9
0.7
0.2
0.1
0.0
EBIT/Interest (x)
2.0
2.2
1.5
10.6
49.6
FY14 FY15e
FY16e
Less: Acc. depreciation

Net block
CWIP
Others
Investments
Current assets
Loans & Advances
4,543
2,592
2,592
2,592
2,592
11,449
11,147
6,040
5,930
7,509
Provisions
3,257
1,399
420
420
420
Net current assets
4,216
2,831
4,863
5,951
7,500
101
39,937
35,429
14,570
15,695
17,893
CY11
CY12
FY14 FY15e
FY16e
58
59
59
59
59
BVPS (INR)
235
345
185
222
278
CEPS (INR)
52
71
26
46
66
DPS (INR)
591
Current liabilities
Others
Total Assets
Per share data

Year ended 31 Mar
No.of Shares (Mn)

* Company had paid high dividend due to payment from Mylan
Year ending changed to March from FY14. FY14 is a 15-month period.
Valuation (x)
Year ended 31 Mar
PE (X)
P/BV (X)
EV/EBITDA (X)
Financial ratios
Year ended 31 Mar
RoE
Margins (%)
Year ended 31 Mar
CY11
CY12
EBITDA
19.3
23.2
16.7
20.6
EBIT
15.2
18.5
12.4
16.9
19.3
7.8
13.3
7.1
16.1
18.4
APAT
Source: Company Antique
22.6
4 July 2014 | 23
Valuation Guide
Company
Reco
CMP
TP
(INR)
(INR)
Return
M.Cap
M.Cap
(%) (INRbn) ( U S D b n )
Net profit (INRbn)

FY14
FY15
FY16
EPS (INR)
PE (x)
FY14
FY15
FY16
(1.8)
(0.6)
1.6
FY14
EV/EBITDA (x)
P/BV (x)
RoE (%) RoCE (%)

FY15
FY15
Absolute (%)
FY15
FY16
FY14
FY15
FY16
FY15
1m
12m
(19.9) (62.3)
21.7
80.1
22.1
10.5
2.7
(7.8)
0.4
77
16.2
15.1
13.8
12.2
5.8
32.5
45.7
17
22
AUTOMOBILES
Ashok Leyland
HOLD
36
32
(10)
95
1.6
(4.8)
(1.5)
4.4
Bajaj Auto
HOLD
2,300
2,156
(6)
666
11.1
32.4
36.6
41.2
112.0 126.5 142.4
20.5
18.2
Bosch
HOLD
13,700
10,689
(22)
430
7.2
8.8
10.2
13.4
281.8 324.9 427.6
48.6
42.2
32.0
36.0
32.2
25.1
6.1
14.4
23.9
12
56
Eicher Motors
BUY
8,583
12,039
40
233
3.9
7.4
11.3
17.1
273.0 416.3 633.5
31.4
20.6
13.5
20.8
13.8
9.4
6.4
31.0
35.2
19
139
Exide Industries
HOLD
159
132
(17)
135
2.3
4.9
5.9
6.7
27.6
22.8
20.0
16.3
14.1
12.5
3.3
14.3
19.5
10
32
Hero MotoCorp
HOLD
2,588
2,827
517
8.7
21.1
28.6
36.3
24.5
18.1
14.3
18.9
13.9
10.9
7.5
41.8
57.4
56
M&M
BUY
1,236
1,316
761
12.7
38.5
40.5
49.2
58.6
74.9
21.1
20.0
16.5
14.5
12.6
10.0
4.0
20.0
24.5
26
Maruti Suzuki
BUY
2,630
2,443
(7)
794
13.3
27.8
33.7
45.0
92.1 111.6 148.8
Tata Motors
BUY
470
575
22
1,415
23.7 161.4 188.1 233.1
5.7
7.0
7.9
105.6 143.2 181.6

61.7
28.5
23.6
17.7
13.7
11.5
8.6
3.3
14.2
21.7
13
68
50.1
58.4
72.4
9.4
8.0
6.5
4.8
4.1
3.3
1.8
22.7
20.5
12
65
Balkrishna Industries Limited
BUY
736
822
12
71
1.2
4.9
6.0
6.6
50.5
62.3
68.5
14.6
11.8
10.7
10.6
8.4
7.2
3.1
27.7
18.9
19
246
Ceat Limited
BUY
661
597
(10)
24
0.4
2.8
3.4
3.6
78.1
94.5
99.5
8.5
7.0
6.6
5.2
4.7
4.6
1.7
25.6
25.8
53
537
Apollo Tyres Limited
HOLD
212
212
107
1.8
9.6
11.2
11.9
19.0
22.2
23.5
11.1
9.5
9.0
6.2
5.5
5.4
1.8
20.6
29.5
15
252
Bharat Forge
BUY
672
628
(7)
156
2.6
4.2
5.7
7.6
18.0
24.4
32.7
37.5
27.6
20.5
16.8
14.0
11.2
5.0
19.6
17.5
29
210
FMCG & RETAIL

Asian Paints
HOLD
582
539
(7)
558
9.3
12.2
14.3
17.3
12.8
14.9
18.0
45.4
39.0
32.4
27.6
23.7
19.4
13.3
34.1
43.4
14
27
Colgate
HOLD
1,608
1,338
(17)
219
3.7
4.8
5.3
6.1
35.0
39.1
44.6
46.0
41.1
36.1
34.2
29.3
24.2
33.3
81.2
102.1
14
22
Dabur India
BUY
192
195
337
5.6
9.2
10.8
13.1
5.3
6.2
7.5
36.5
30.9
25.6
29.9
25.3
20.8
10.3
33.5
30.9
23
Radico Khaitan
BUY
113
136
21
15
0.3
0.9
1.0
1.2
6.8
7.6
8.8
16.6
14.9
12.8
10.9
9.9
8.9
1.7
11.6
11.3
18
Godrej Consumer
HOLD
807
789
(2)
275
4.6
7.6
9.0
10.7
22.9
26.3
31.6
35.2
30.7
25.6
24.6
21.2
17.6
6.2
20.2
20.4
(0)
HUL
HOLD
624
592
(5)
1,350
22.6
35.5
38.2
42.7
16.4
17.6
19.7
38.0
35.4
31.6
29.7
27.0
23.5
40.7
115.0
140.3
ITC
BUY
331
397
20
2,635
44.1
87.9 102.1 122.1
11.0
12.8
15.3
30.0
25.8
21.6
21.5
18.4
15.2
8.8
33.9
43.2
(1)
Jyothy Labs
BUY
180
240
33
33
0.5
1.1
1.7
1.9
6.0
9.6
10.4
30.0
18.7
17.2
23.9
19.2
13.9
3.2
16.9
7.6
(4)
Marico
HOLD
249
232
(7)
161
2.7
5.2
5.3
6.2
8.1
8.1
9.7
30.9
30.6
25.8
21.8
19.8
16.3
8.7
28.6
30.0
26
Nestle India
HOLD
4,998
4,430
(11)
482
8.1
11.2
11.4
14.2
42.5
42.4
33.8
25.1
25.0
20.3
16.2
38.2
39.5
(1)
Titan Company
BUY
361
420
16
320
5.4
7.6
9.2
12.4
8.6
10.4
14.0
42.1
34.8
25.8
33.6
27.7
19.5
9.9
28.5
32.0
13
60
TBZ
BUY
209
258
24
14
0.2
0.5
0.8
1.1
8.3
12.2
17.2
25.3
17.1
12.1
14.8
11.6
7.9
2.7
16.0
10.9
16
17
United Spirits
SELL
2,491
2,203
(12)
362
6.1
0.5
2.6
5.7
3.4
18.1
39.5
730.8 137.9
63.1
38.7
32.6
23.6
4.3
3.1
Tilaknagar Ind
BUY
59
71
21
0.1
0.6
0.7
1.1
4.8
6.0
8.6
12.3
9.7
6.9
8.6
7.9
6.6
1.1
11.4
11.1
21
V- Mart
BUY
390
366
(6)
0.1
0.3
0.4
0.5
14.0
21.8
28.7
27.8
17.9
13.6
13.8
9.5
7.4
3.3
18.7
25.7
27
188
87
117.6 117.9 147.7
7.1 (12)
(1)
INDUSTRIALS
ABB
HOLD
1,137
706
(38)
241
4.0
1.8
2.9
4.3
8.3
13.6
20.2
136.2
83.5
56.4
51.9
39.0
30.1
8.5
10.1
15.8
21
BGR
HOLD
221
125
(43)
16
0.3
1.5
1.7
2.0
20.2
23.9
27.8
11.0
9.2
7.9
7.1
5.9
5.2
1.1
12.7
11.4
76
BHEL
BUY
261
315
21
639
10.7
32.3
34.4
38.6
13.2
14.0
15.8
19.8
18.6
16.6
11.5
11.8
8.7
1.8
9.9
10.1
46
Crompton Greaves
BUY
205
203
(1)
129
2.2
2.4
6.0
7.6
3.9
9.5
12.0
52.8
21.6
17.1
21.6
12.8
10.2
2.6
11.8
11.3
127
Cummins India
BUY
687
811
18
191
3.2
6.2
7.2
9.0
22.3
26.0
32.5
30.8
26.4
21.2
27.1
24.1
19.0
6.9
25.0
25.5
55
Havells India
HOLD
1,193
1,043
(13)
149
2.5
4.5
6.2
7.4
35.7
49.5
58.9
33.4
24.1
20.3
22.6
22.7
22.1
7.3
33.2
32.3
13
64
Larsen & Toubro
BUY
1,752
1,810
1,626
27.2
45.7
55.3
68.8
49.3
59.6
74.2
35.6
29.4
23.6
25.5
21.8
18.3
4.3
14.1
14.2
89
Siemens
BUY
988
892
(10)
352
5.9
5.1
7.7
10.5
14.2
21.5
29.5
69.6
45.9
33.5
36.4
25.2
18.2
7.6
16.5
23.9
82
KEC
HOLD
132
90
(32)
34
0.6
0.7
1.7
2.3
3.3
6.5
9.0
40.1
20.5
14.7
10.3
8.0
6.7
2.6
12.8
17.1
12
312
Voltas
BUY
218
242
11
72
1.2
2.2
3.2
4.5
6.8
9.7
13.4
32.2
22.5
16.2
27.2
20.1
14.0
3.6
16.1
14.7
175
INFORMATION TECHNOLOGY
HCL Tech
HOLD
1,466
1500
1,026
17.2
60.1
69.2
77.7
85.7
98.6 110.6
17.1
14.9
13.3
11.1
9.4
8.0
4.0
30.3
29.2
91
Hexaware Tech
SELL
152
125
(18)
46
0.8
3.8
3.5
4.1
12.8
11.8
11.9
12.8
11.0
7.6
8.1
6.9
2.9
22.9
22.6
74
Infosys Ltd.
BUY
3,211
3,900
21
1,844
16.9
15.2
13.1
11.6
9.8
8.1
3.3
23.4
22.9
34
KPIT
BUY
170
210
23
33
12.9
10.7
8.9
8.1
6.8
5.3
2.0
19.1
24.5
42
30.9 108.7 120.9 140.5

0.6
2.5
3.0
3.6
13.8
189.8 211.1 245.2

13.2
15.9
19.1
MphasiS
BUY
426
510
20
89
1.5
3.5
8.2
9.7
14.7
38.8
46.1
29.0
11.0
9.2
18.9
8.1
6.8
1.6
15.4
12.1
15
Persistent Sys
BUY
1,087
1,400
29
43
0.7
2.5
3.2
4.0
62.3
80.2
98.9
17.4
13.5
11.0
10.1
7.9
6.4
3.0
21.9
26.8
125
97.0 112.9 132.3
24.9
21.4
18.3
18.3
15.8
13.3
6.6
30.9
36.6
14
62
110.6 136.7 159.2
19.1
15.5
13.3
11.5
9.5
8.2
4.2
30.7
35.3
11
112
17.5
14.9
13.3
13.5
10.9
9.5
3.3
22.3
24.4
12
62
TCS
BUY
2,418
2,550
4,736
Tech Mahindra
BUY
2,113
2,350
11
495
8.3
25.8
31.9
Wipro
HOLD
556
585
1,371
22.9
78.4
92.0 103.1
UR: Under Review
79.3 189.9 220.9 259.0

37.2
31.8
37.4
41.9
contd...
4 July 2014 | 24
Valuation Guide
Company
Reco
CMP
TP
(INR)
(INR)
Return
M.Cap
M.Cap
Net profit (INRbn)

FY14
FY15
FY16
EPS (INR)
PE (x)
FY14
FY15
FY16
FY14
FY15
EV/EBITDA (x)
P/BV (x)
FY16
FY14
FY15
FY16
FY15
RoE (%) RoCE (%)

FY15
FY15
Absolute (%)
1m
12m
39
MEDIA
Den Networks
BUY
237
235
(1)
42
0.7
0.8
1.5
2.4
3.4
8.3
13.4
68.8
28.4
17.8
12.3
8.6
5.4
2.1
7.4
7.7
Dish TV India
BUY
61
70
14
65
1.1
(0.9)
1.3
3.8
(2.0)
1.3
3.6
(31.1)
49.0
17.1
13.5
9.0
7.1
(36.0)
nm
16.5
18
(1)
Hathway Cable
BUY
318
360
13
48
0.8
0.14
1.35
2.23
1.0
9.5
15.6
318.0
33.7
20.4
15.3
9.1
6.6
3.6
10.0
13.7
15
Just Dial Ltd
BUY
1,486
1,650
11
104
1.7
1.21
1.32
2.16
17.2
18.8
30.7
86.2
78.9
48.3
68.6
61.5
35.4
16.1
20.4
20.6
13
134
Sun TV Network
BUY
463
495
182
3.1
7.5
9.3
10.7
19.2
23.6
27.2
24.2
19.6
17.0
15.2
12.5
10.8
5.1
25.9
33.6
22
Zee Ent
HOLD
296
270
(9)
285
4.8
8.9
10.4
11.4
9.2
10.8
11.8
32.1
27.3
25.1
23.2
21.6
19.4
5.1
18.7
20.3
22
Hindalco Industries
HOLD
174
133
(24)
359
6.0
25.7
29.1
28.1
12.5
14.1
13.6
14.0
12.3
12.8
10.6
9.0
7.3
0.9
7.1
5.2
12
76
Hindustan Zinc
BUY
168
182
709
11.9
69.7
70.4
74.8
16.5
16.7
17.7
10.2
10.1
9.5
6.5
5.7
4.7
1.7
17.6
42.9
(0)
65
JSW Steel
HOLD
1,289
1,318
312
5.2
21.6
23.3
31.1
89.6
96.3 128.5
14.4
13.4
10.0
7.1
6.9
5.9
1.4
10.5
8.0
111
SAIL
HOLD
96
85
(11)
395
6.6
16.6
26.8
33.1
4.0
6.5
8.0
23.9
14.8
11.9
15.1
11.4
9.2
0.9
6.1
4.5
92
TATA Steel
BUY
539
535
(1)
524
8.8
36.2
38.9
57.3
37.3
40.0
59.0
14.5
13.5
9.1
7.4
7.4
6.6
1.2
9.1
5.7
100
NMDC
HOLD
185
176
(5)
735
12.3
63.7
66.9
74.3
16.1
16.9
18.7
11.5
11.0
9.9
7.0
6.7
6.0
2.2
21.3
40.9
85
Nalco
BUY
59
56
(6)
153
2.6
6.9
6.5
7.5
2.7
2.5
2.9
22.1
23.5
20.2
10.7
10.3
8.6
1.2
5.3
3.8
11
102
BPCL
BUY
600
700
17
434
7.3
36.5
30.0
35.0
55.7
45.7
53.3
10.8
13.1
11.2
6.5
6.7
6.3
1.8
13.8
12.2
68
Cairn India
HOLD
361
350
(3)
689
11.5 124.3 110.5 116.9
65.9
57.8
60.9
5.5
6.3
5.9
4.9
5.1
4.4
1.1
21.9
19.8
25
Essar Oil
HOLD
107
82
(23)
155
2.6
1.3
16.7
13.8
0.9
11.5
9.5
123.3
9.3
11.2
6.7
7.1
6.7
3.8
40.8
12.8
12
63
GAIL India
HOLD
459
405
(12)
582
9.7
41.4
40.5
44.7
32.6
31.9
35.2
14.1
14.4
13.0
9.8
9.1
8.1
2.0
13.7
13.3
20
39
Gujarat State Petro
BUY
93
108
17
52
0.9
4.2
4.9
5.5
7.4
8.8
9.7
12.4
10.5
9.5
6.3
5.7
5.3
1.4
13.3
16.6
21
64
HPCL
BUY
414
460
11
140
2.3
14.4
10.4
14.9
42.3
30.6
44.0
9.8
13.5
9.4
8.4
7.6
6.5
0.9
5.5
2.2
(2)
69
Indian Oil Corp
BUY
343
445
30
832
13.9
57.8
62.3
90.7
24.4
26.3
38.3
14.0
13.0
9.0
10.5
8.1
5.8
1.1
8.7
6.3
(5)
52
Indraprastha Gas
BUY
365
450
23
51
0.9
3.6
3.8
4.2
25.7
27.4
29.8
14.2
13.3
12.3
6.6
6.2
5.5
2.5
19.1
22.1
10
30
MRPL
SELL
73
57
(21)
127
2.1
6.0
5.0
11.4
3.4
2.9
6.5
21.2
25.2
11.1
11.2
10.3
6.5
1.7
6.8
6.5
99
Oil India
BUY
591
900
52
355
5.9
28.8
32.1
50.7
48.0
53.3
84.4
12.3
11.1
7.0
8.4
6.8
4.2
1.6
14.2
11.3
59.9 226.4 287.6 366.1
METALS & MINING
OIL & GAS
ONGC
BUY
418
600
43
3,577
Petronet LNG
BUY
171
170
(1)
129
Reliance Industries
HOLD
1,007
950
(6)
3,254
Cipla
HOLD
448
407
(9)
359
Dr Reddy's
BUY
2,639
2,994
13
Lupin
BUY
1,082
1112
Sun Pharma
BUY
707
783
11
31.7
39.1
48.2
13.2
10.7
8.7
7.9
6.3
5.0
2.4
18.9
23.0
34
7.8
9.5
10.8
10.3
18.1
15.9
16.6
9.9
8.4
8.9
2.3
14.5
15.5
41
54.5 224.9 257.5 277.1
69.6
79.6
85.7
14.5
12.6
11.7
12.2
11.7
11.1
1.3
11.5
7.1
(8)
18
13.7
19.2
24.6
32.6
23.3
18.2
20.0
15.3
12.1
3.1
14.2
12.0
15
13
122.7 136.4 166.3
2.2
7.1
8.1
PHARMACEUTICALS
6.0
11.0
15.5
19.8
449
7.5
20.8
23.2
28.2
21.5
19.4
15.9
14.5
12.9
10.5
4.5
23.0
18.9
13
19
485
8.1
17.8
22.7
24.9
39.7
50.8
55.6
27.3
21.3
19.5
16.1
13.4
11.9
5.7
29.8
26.6
18
30
1,464
24.5
57.2
63.0
74.8
27.6
30.4
36.1
25.6
23.2
19.6
19.5
16.5
13.2
6.4
27.5
29.2
17
39
Aurobindo
HOLD
768
638
(17)
224
3.7
11.7
13.8
15.5
46.8
47.2
53.2
16.4
16.3
14.4
11.5
10.9
9.6
4.5
31.4
16.7
23
316
Cadila Health
BUY
1,119
1243
11
229
3.8
8.8
10.7
14.1
41.7
52.5
69.1
26.8
21.3
16.2
19.4
15.3
11.9
5.4
26.6
17.6
22
45
Strides
BUY
671
709
40
0.7
0.9
2.1
2.8
16.4
36.2
47.4
41.0
18.6
14.2
17.8
14.0
10.6
3.0
19.6
12.2
27
77
Glenmark
BUY
608
663
165
2.8
7.3
10.0
12.6
27.4
35.7
47.0
22.2
17.0
12.9
14.4
11.4
8.9
4.2
25.9
23.3
12
Biocon
BUY
544
477
(12)
109
1.8
4.1
5.2
6.6
20.4
26.2
32.8
26.6
20.8
16.6
16.6
13.1
10.5
3.2
16.4
9.7
23
98
Unichem
BUY
239
230
(4)
22
0.4
0.9
1.5
1.9
11.8
16.1
20.9
20.3
14.9
11.4
12.0
9.3
7.3
2.4
16.1
14.2
21
50
1,279
1,283
249
4.2
10.1
11.5
13.9
51.7
58.7
71.3
24.7
21.8
17.9
18.7
15.7
12.5
3.2
14.5
20.9
77
SHIPPING AND LOGISTICS

Container Corp.
HOLD
GE Shipping
HOLD
367
372
55
0.9
4.6
5.7
7.4
30.8
38.1
48.9
11.9
9.6
7.5
5.8
5.1
4.4
0.8
6.8
7.6
74
Adani Port and SEZ
BUY
270
232
(14)
560
9.4
20.1
21.5
26.9
9.6
10.3
12.9
28.1
26.2
20.9
23.0
17.8
14.8
5.4
20.1
16.5
13
81
Gujarat Pipavav
HOLD
119
81
(32)
58
1.0
1.8
2.1
2.3
3.6
4.4
4.8
32.8
27.3
25.0
22.7
20.1
16.4
3.9
14.3
13.9
(2)
164
UR: Under Review
contd...
4 July 2014 | 25
Valuation Guide
Company
Reco
CMP
TP
(INR)
(INR)
Return
M.Cap
M.Cap
Net profit (INRbn)

FY14
FY15
FY16
6.5
6.7
EPS (INR)
PE (x)
EV/EBITDA (x)
P/BV (x)
FY14
FY15
FY16
FY14
FY15
FY16
FY14
FY15
FY16
FY15
7.1
39.2
42.6
64.8
18.2
16.7
11.0
11.6
8.7
6.5
21.7 114.0 103.6 109.6
13.8
12.6
13.3
11.4
12.5
11.8
9.6
9.5
9.2
57.6
8.6
9.7
11.0
16.3
14.4
12.8
11.8
10.9
RoE (%) RoCE (%)
Absolute (%)
FY15
FY15
1m
12m
1.6
9.6
7.2
18
108
1.4
11.1
7.8
(4)
10
9.9
1.9
13.2
7.5
12
30
UTILITIES
CESC
HOLD
714
501
(30)
89
NTPC
HOLD
157
141
(10)
1,297
1.5
Power Grid
BUY
141
152
735
12.3
45.0
50.9
PTC India
BUY
97
125
29
29
0.5
3.6
2.7
3.7
8.5
5.9
8.7
11.4
16.3
11.1
3.4
5.1
1.1
0.3
6.7
10.2
11
105
Tata Power
BUY
107
90
(16)
289
4.8
10.4
16.9
17.9
4.4
6.2
6.6
24.5
17.1
16.1
8.2
6.9
6.4
1.8
10.6
10.8
34
Coal India
BUY
396
442
12
2,502
41.9 151.1 177.4 210.4
23.9
28.1
33.3
16.6
14.1
11.9
12.5
10.4
7.8
5.1
36.3
32.6
33
Supreme Industries
BUY
550
553
70
1.2
2.9
3.6
4.3
22.8
28.1
33.5
24.1
19.5
16.4
12.7
10.6
9.3
4.2
31.5
31.9
65
Cera Sanitaryware
BUY
1,297
863
(33)
16
0.3
0.5
0.7
0.8
41.6
55.1
66.4
31.2
23.5
19.5
18.6
14.4
12.0
5.8
27.5
32.2
(7)
163
Kajaria Ceramics
BUY
545
417
(23)
41
0.7
1.2
1.7
2.2
15.6
21.3
27.8
34.9
25.5
19.6
15.5
12.3
9.6
6.7
26.4
30.2
(6)
133
Finolex Industries
BUY
288
340
18
36
0.6
1.7
2.4
2.8
13.7
19.4
22.7
21.0
14.9
12.7
11.5
8.9
7.7
4.0
28.5
24.5
12
123
Astral Poly Technik Limited
HOLD
732
490
(33)
41
0.7
0.8
1.1
1.6
14.0
20.4
28.8
52.1
35.8
25.4
26.1
20.9
16.0
9.9
31.3
37.2
22
221
Company
Reco
Return
M.Cap
M.Cap
FY16
FY14
FY15
FY16
FY14
OTHERS
CMP
TP
(INR)
(INR)
Net profit (INRbn)
FY14
FY15
FY16
EPS (INR)
FY14
FY15
PE (x)
NNPA Ratio (%)

FY15
P/AdjBV (x) RoE (%) RoA (%)
FY16
FY15
FY15
FY15
Absolute (%)
1m
12m
FINANCIALS
Axis Bank
HOLD
1,926
2,200
14
908
15.2
62.2
71.4
81.6
132.3 151.9 173.7
14.6
12.7
11.1
0.4
0.5
2.1
17.2
1.7
51
Bank of Baroda
BUY
876
1,007
15
376
6.3
45.4
50.6
58.9
105.4 117.5 136.8
8.3
7.5
6.4
1.5
1.8
1.6
1.1
13.3
0.7
61
Bank of India
HOLD
304
268
(12)
195
3.3
27.3
34.1
38.7
7.2
5.7
5.0
3.2
3.2
3.1
0.8
10.8
0.6
(4)
38
Canara Bank
HOLD
447
315
(30)
206
3.5
24.4
33.3
42.2
HDFC
HOLD
1,008
904
(10)
1580
26.4
54.4
63.4
76.5
HDFC Bank
BUY
837
780
(7)
2015
33.7
84.8 106.8 135.6
ICICI Bank
BUY
1,454
1,575
1681
28.1
98.1 111.5 130.2
IndusInd Bank
BUY
573
550
(4)
302
5.0
14.1
18.0
22.4
Kotak Mahindra
HOLD
891
806
(10)
687
11.5
15.3
18.4
PNB
HOLD
991
785
(21)
359
6.0
33.4
43.1
SBI
BUY
2,696
3,045
13
2013
42.4
53.0
60.2
52.9
72.1
91.5
8.5
6.2
4.9
2.0
1.8
1.7
0.8
10.7
0.6
25
34.9
40.6
49.0
28.9
24.8
20.6
0.2
0.2
0.2
5.0
21.0
2.9
10
18
35.5
44.5
56.5
23.6
18.8
14.8
0.3
0.2
0.2
3.9
22.4
2.0
29
84.5
95.9 112.1
17.2
15.2
13.0
1.0
1.0
1.0
2.2
13.7
1.7
(0)
37
26.9
34.5
42.7
21.3
16.6
13.4
0.3
0.4
0.4
2.9
18.4
1.9
23
21.6
20.5
24.6
28.9
43.5
36.2
30.9
1.1
1.4
1.8
5.8
15.8
1.6
28
52.1
92.3 119.0 144.0
10.7
8.3
6.9
2.8
2.6
2.3
1.2
11.4
0.7
59
33.7 108.9 154.4 213.7
145.9 206.8 286.3
18.5
13.0
9.4
2.1
2.1
2.0
1.9
12.4
0.8
42
Union Bank
HOLD
231
150
(35)
145
2.4
17.0
22.4
26.7
26.9
35.5
42.3
8.6
6.5
5.4
2.3
2.4
2.5
1.0
12.5
0.6
35
YES Bank
BUY
563
653
16
233
3.9
16.2
18.3
21.1
44.9
50.7
58.4
12.5
11.1
9.6
0.0
0.0
0.0
2.3
23.1
1.5
(3)
21
Bajaj Auto Fin
BUY
2,176
2,157
(1)
109
1.8
7.2
8.6
10.3
144.5 172.9 207.0
15.1
12.6
10.5
0.2
0.3
0.3
2.3
19.9
3.2
53
Chola Invst & Fin.
HOLD
406
301
(26)
58
1.0
3.3
4.5
5.4
25.4
31.3
37.9
16.0
13.0
10.7
0.8
1.1
1.3
2.2
19.0
1.9
18
69
Gruh Finance
BUY
198
305
54
71
1.2
1.8
2.3
2.8
9.8
12.6
15.8
20.2
15.8
12.6
4.7
33.6
3.5
73
LIC Housing Fin
BUY
324
310
(4)
164
2.7
13.1
16.5
20.3
26.0
32.7
40.3
12.5
9.9
8.0
0.1
0.1
0.1
1.9
20.2
1.6
(3)
35
M&M Fin.
BUY
274
290
156
2.6
8.9
10.9
13.7
15.8
19.3
24.4
17.4
14.2
11.2
1.9
2.2
2.5
2.6
21.3
3.4 (10)
Manappuram
HOLD
23
24
20
0.3
2.3
1.7
2.1
2.7
2.0
2.4
8.7
11.7
9.5
0.4
0.4
0.4
0.8
8.0
Muthoot Finance
BUY
189
232
23
75
1.3
7.8
9.1
10.8
21.0
22.9
27.2
9.0
8.3
7.0
1.1
0.9
0.9
1.6
PFC
HOLD
319
338
421
7.1
54.2
63.8
72.9
41.0
49.5
56.4
7.8
6.4
5.7
0.5
1.0
1.0
1.3
Repco Home Fin.
HOLD
473
391
(17)
29
0.5
1.1
1.5
1.8
17.7
24.4
29.6
26.7
19.3
16.0
0.7
0.7
0.7
3.4
REC
HOLD
369
374
365
6.1
46.8
54.3
63.3
47.4
56.5
65.6
7.8
6.5
5.6
0.1
0.3
0.5
Shriram Transport
HOLD
936
759
(19)
212
3.6
13.6
15.0
18.0
60.0
66.4
79.4
15.6
14.1
11.8
0.5
0.7
1.5
SKS Microfinance
Hold
276
355
29
35
0.6
0.7
1.6
2.1
6.5
13.1
17.0
42.6
21.0
16.2
0.1
0.2
0.3
UR: Under Review
1.6
11
127
18.8
4.1
(7)
94
20.9
3.1
133
19.5
2.6
85
1.5
23.6
3.5
13
86
2.2
16.6
2.9
(2)
38
5.6
19.3
5.1
(8)
155
Events Calendar
Monday
7 Jul
Jul/Aug 2014
Tuesday
Wednesday
Thursday
Friday
Saturday
Sun
1 Jul
2 Jul
3 Jul
4 Jul
5 Jul
6 Jul
9 Jul
10 Jul
11 Jul
12 Jul
13 Jul
Cera Sanitaryware
Infosys
Unichem Lab
18 Jul
19 Jul
20 Jul
26 Jul
27 Jul
8 Jul
IndusInd Bank
14 Jul
21 Jul
15 Jul
22 Jul
16 Jul
17 Jul
Bajaj Finance
Kotak Mahindra Bank
Bajaj Auto
23 Jul
24 Jul
25 Jul
Biocon
M&M Financial
Colgate Palmolive
31 Jul
1 Aug
2 Aug
3 Aug
8 Aug
9 Aug
10Aug
Exide Ind
28 Jul
4 July 2014 | 26
29 Jul
30 Jul
MphasiS
4 Aug
5 Aug
6 Aug
7 Aug
11 Aug
12 Aug
13 Aug
14 Aug
4 July 2014 | 27
Important Disclaimer:
This report is prepared and published on behalf of the research team of Antique Stock Broking Limited (ASBL). ASBL, its holding company and associate
companies are a full service, integrated investment banking, investment advisory and brokerage group. Our research analysts and sales persons provide
important inputs for our investment banking and allied activities. We have exercised due diligence in checking the correctness and authenticity of the
information contained herein, so far as it relates to current and historical information, but do not guarantee its accuracy or completeness. The opinions
expressed are our current opinions as of the date appearing in the material and may be subject to change from time to time without any notice. ASBL or any
persons connected with it do not solicit any action based on this report and do not accept any liability arising from the use of this document. The recipients
of this material should rely on their own judgment and take their own professional advice before acting on this information. The research reports are for
private circulation and are not to be construed as, an offer to sell or solicitation of an offer to buy any securities. Unless otherwise noted, all research reports
provide information of a general nature and do not address the circumstances of any particular investor. The distribution of this document in certain
jurisdictions may be restricted by law, and persons in whose possession this document comes, should inform themselves about and observe, any such
restrictions. ASBL its holding company and associate companies or any of its connected persons including its directors or employees shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained, views and opinions expressed in
this publication. ASBL its holding company and associate companies, officers, directors, and employees may: (a) from time to time, have long or short positions
in, and buy or sell the securities thereof, of company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn
brokerage or other compensation or act as advisor or lender/borrower to such company(ies) or have other potential conflict of interest with respect to any
recommendation and related information and opinions. ASBL, its holding company and associate companies, directors, officers or employees may, from time
to time, deal in the securities mentioned herein, as principal or agent. ASBL its holding company and associate companies may have acted as an Investment
Advisor or Merchant Banker for some of the companies (or its connected persons) mentioned in this report. The research reports and all the information
opinions and conclusions contained in them are proprietary information of ASBL and the same may not be reproduced or distributed in whole or in part
without express consent of ASBL. The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views
about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to
specific recommendations or views expressed in this report.
Analyst ownership in stock
Yes for Strides Arcolab
Antique Stock Broking Limited
Nirmal, 2nd Floor, Nariman Point, Mumbai 400 021.

Tel. : +91 22 4031 3444 Fax : +91 22 4031 3445
www.antiquelimited.com

Amp - 140704 PDF

Încărcat de

Informații document

Descriere originală:

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Amp - 140704 PDF

Încărcat de

Drepturi de autor:

Formate disponibile

ANTIQUES MORNING PRESENTATION

KPIT Technologies Limited

Strides Arcolab Limited

Sector & Corporate News

Open Int (%)

ANTIQUE STOCK BROKING LIMITED

FROM THE RESEARCH DESK

BSE Cap Goods

BSE Cons dur

Tata Motors Ltd

Sun Pharmaceutical Indus

Mahindra & Mahindra Ltd

Tata Consultancy Svcs Ltd

Hindalco Industries Ltd

Tata Power Co Ltd

Hero Motocorp Ltd

Bajaj Auto Ltd

Cairn India Ltd

Citigroup Global Markets Mauritius Private Ltd

Jagran Prakashan Limited

Jagran Prakashan Employee Welfare Trust

Standard Chartered Bank (Mauritius) Limited

Amtek India Limited

Asia Investment Corporation Limited

Marico Kaya Entrprses Ltd

Indivest Pte Limited

Marico Kaya Entrprses Ltd

Jyoti Portfolio Limited

Ivory Consultants Pvt Ltd

Eversight Tradecomm Private Limited

Premier Investment Fund Limited

Asian Hotels (East) Ltd

Jesmin Investments Limited

Aries Agro Limited

Templeton Stock Growth Private Limited

ANTIQUE STOCK BROKING LIMITED

FROM THE RESEARCH DESK

FII Provisional Flows (INRcr)

DII Provisional Flows (INRcr)

Economy, Money & Banking

Crude Oil ($/Bl)

Gold and silver prices

Inflation vs 10 year yield

NSE volatility index (%)

ANTIQUE STOCK BROKING LIMITED

KPIT Technologies Limited

Potential Return : 35%

+91 22 4031 3419

+91 22 4031 3427

Market Cap (INRbn)

Market Cap (USDbn)

O/S Shares (m)

52-wk HI/LO (INR)

Avg Daily Vol ('000)

Dividend Yield (%) 0.6

Valuations and outlook

Price performance vs Nifty

FROM THE RESEARCH DESK

Net profit margin (%)

Source: Company, Antique

ANTIQUE STOCK BROKING LIMITED