Result Update

February 28, 2014

Rating matrix

Bosch Ltd (MICO)

Rating

Buy

Target

| 10700

Target Period

12 months

Potential Upside

14%

| 9405
WHATS CHANGED
PRICE TARGET................................................................. Changed from | 9360 to | 10700

Key Financials (Consolidated)

| Crore
Net Sales
EBITDA
Net Profit
EPS (|)

CY12
8,417
1,349.5
958.3
305.2

CY13E
8,641.1
1,291.0
884.7
281.8

CY14E
9,554.0
1,486.0
1,070.4
340.9

CY15E
11,180.9
1,858.7
1,392.2
443.4

CY14E
27.6
17.9
20.6
4.2
15.1
14.5

CY15E
21.2
13.8
16.0
3.6
16.9
16.7

Valuation summary(Consolidated)
P/E (x)
EV / EBITDA (x)
Target EV / EBITDA (x)
P/BV (x)
RoNW (%)
RoCE (%)

CY12
30.8
20.1
23.1
5.3
17.2
17.1

CY13E
33.4
20.9
24.1
4.7
14.1
14.1

Stock data
Market Capitalization
Total Debt (CY13E)
Cash and Investments (CY13E)
EV
52 week H/L
Equity capital
Face value
MF Holding (%)
FII Holding (%)

| 29529.9 Crore
| 131.5 Crore
| 2642.9 Crore
| 27018.5 Crore
10599 / 8026
| 31.4 Crore
| 10
11.7
7.3

Price movement
11,000

6,400

10,000

5,800

9,000

(|)

(unit)

6,100

8,000

5,500

7,000

5,200
Mar-13

6,000
Jun-13

Sep-13

Price (R.H.S)

Dec-13

Feb-14

Nifty (L.H.S)

Analysts name
Nishant Vass
nishant.vass@icicisecurities.com
Venil Shah
venil.shah@icicisecurities.com

EPS (CY14E)..................................................................... Changed from | 350.7 to | 340.9

EPS (CY15E)..................................................................... Changed from | 437.1 to | 443.4
RATING....................................................................................... Changed from Hold to Buy

Quarterly blip does not mar long-term story!

Bosch Ltd (Bosch) reported its Q4CY13 results that were largely in-line on
the topline front but came lower on the margins, profitability fronts.
Revenues at | 2162 crore grew 1.4% YoY as the significant slowdown in
automotive demand led to ~2% YoY decline while the non-auto segment
grew ~30% YoY to ~| 300 crore. Impact of tooling write-off and rupee
depreciation led to lower margins of 9.9% in a seasonally weak quarter.
Lower other income and impact of higher-than-expected depreciation
also led to lower PAT that was at ~| 139 crore. With the tractor segment
growing rapidly (~22% YoY in Q4), normalised export growth (~15%
YoY) and replacement segment holding ground despite the slowdown,
Boschs automotive business has continued to be resilient. The nonautomotive segment has continued to grow at ~30% YoY albeit on a low
base. We believe it is adequately ready for any benefits accruing from
emission changes in CY15E & is working on modernising facilities (~| 600
crore for CY14E, CY15E each) for the future. With a strong monopolistic
product portfolio, backed by robust R&D, we believe Boschs business
profile remains unblemished. We expect it to witness ~25% CAGR (CY1315E). We upgrade our rating to BUY with an enhanced TP of | 10700.
Future holds promise as regulation changes imminent
Boschs topline performance has been resilient to the overall weakness in
the auto sector due to its diversified business across the UV, CV, tractor,
3W segments, with export/aftermarket segments providing additional
cushion. We expect the severely suppressed M&HCV segment (5%, 16%
growth in FY15E, FY16E) to aid improvement in margins, utilisation. With
emissions norms likely to kick-in from CY15E, we expect a further boost
to the business, as was the case in CY05 and CY10 as content per vehicle
increases on product enrichment/up-gradation.
Solid play on recovery; multiples to expand as cycle bottoms out
Bosch will be a key beneficiary of a recovery in the automotive space and
could benefit significantly from the likely emission norm changes in
CY15E. Bosch has justifiably traded at a premium to the rest of the auto
ancillary pack considering its business profile strength/financial profile.
With the economic cycle likely to have bottomed out, we expect multiples
to further expand going into elections. We value Bosch at 16x EV/EBIDTA
CY15E and recommend BUY with a TP of | 10700.
Exhibit 1: Financial Performance
(| Crore)
Total Operating Income
EBITDA
EBITDA Margin (%)
Depreciation
Interest
Other Income
Reported PAT
EPS (|)

Q4CY13
2162.0
213.4
9.9
124.2
2.5
93.1
139.0
44.3

Q4CY13E
2266.7
318.1
14.0
110.7
0.1
120.0
224.2
71.4

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Q4CY12
2131.8
266.1
12.5
129.2
5.4
113.3
172.1
54.8

Q3CY13
2149.9
326.6
15.2
89.4
0.0
86.5
234.3
74.6

QoQ (Chg %)
0.6
-34.7
-532 bps
38.9
8166.7
7.7
-40.7
-40.7

YoY (Chg %)
1.4
-19.8
-261 bps
-3.9
-54.1
-17.8
-19.2
-19.2

Exhibit 2: Assumption
CY11
Revenue (| crore)
Automotive
Non-automotive

CY12

CY13E

CY14E

CY15E

7,241.4
19.2
847.4
29.1

7,726.4
6.7
979.5
15.6

7,696.6
(0.4)
1,136.4
16.0

8,470.9
10.1
1,290.4
13.6

9,915.0
17.0
1,508.4
16.9

17.3
6.8

13.3
9.1

12.9
4.9

13.9
5.7

15.4
6.7

EBIT margins (%)

Automotive
Non-automotive

Source: Company, ICICIdirect.com Research

Exhibit 3: Net sales and PAT margin trend

12000

22.2

11000
9,756

9000
(%)

(| crore)

10000
8,166

8,659

11,418

25

17.0

20

8,820

15
10.6

8000

10

7000
6000

6.0

1.9

CY12

CY13E

5000

CY11

CY14E

Total operating income

CY15E

% increase

Source: Company, ICICIdirect.com Research

With Bosch entering a high capex cycle to cater to the

Exhibit 4: Return ratios profile

investments required for future, return ratios are likely to

27

remain subdued. However, they are likely to improve from

23.7

current levels in the next two years as profitability

24
(%)

improves

25.2

21
17.2

18

17.1

15
12
CY11

CY12

16.9
15.1

14.1

16.7

14.1

14.5

CY13E

CY14E

RoE

CY15E

RoCE

Source: Company, ICICIdirect.com Research * (net of Interest & Inter segment eliminations)

ICICI Securities Ltd | Retail Equity Research

Page 2

Bosch is the largest importer in the auto ancillary space.

Exhibit 5: Import content trending down

Hence, it is impacted more by the volatility in the

currency markets than other ancillary players. Over the
years, net imports have crept up due to an increase in the

2,200

30

traded goods component. For Bosch, a majority of the

1,400

2,055

CY08

CY09

22.3

26
20.0

22
18

1,728

1,440

17.5
833

600

15.8
718

1,000

21.7
(%)

technical expenses

(| crore)

while a small portion is also from royalty and other

25.9

1,877

1,800

exposure is in the form of raw materials and traded goods

14

200

10
CY10

CY11

Net Forex Exposure

CY12

CY13*

% of Sales

Source: Company, ICICIdirect.com Research * CY13 is estimated

Key management takeaways

The management indicated that growth in Q3 was mainly driven by the
tractor segment, which grew ~22% YoY at an industry level. The other
segments have witnessed a decline in volumes despite new product
launches.
Exports at ~| 300 crore witnessed growth of ~15% YoY in Q4 and grew
12.2% for CY13 (| 1058 crore). On the exports front, despite the clearly
defined local for local policy, India is a lone production centre for the inline pump segments, which are exported to a few countries with lower
emission standards.
The after-market segment, which contributes 20-25% of the turnover, has
also been stable despite the sharp slowdown in the OEM segment.
The company is targeting a ~| 600-crore capital expenditure in CY14E for
a new manufacturing facility at Bidadi and augmenting the existing facility
at Adugodi, which will be transformed into an R&D hub. Bosch has also
signed an MoU with the Government of Maharashtra to invest ~| 750
crore over a five-year period.

Outlook & valuation

We believe the M&CV and tractor segments will be growth drivers for
Boschs earnings in CY14E and CY15E, as we expect a recovery in the
M&HCV segment in H2FY15E, FY16E after seven to eight quarters of
demand slowdown. An increase in the non-automotive business also
lends earnings stability across cycles.
We believe as emission norm changes will trigger an increase in content
per vehicle on product enrichment/upgradation (e.g. change from
conventional in line/mechanical pumps to common rail systems), this will
drive higher topline, profitability growth for Bosch as engine parts are the
most impacted by emission norm changes. Faster localisation of content
post the product acceptance by OEMs post-norm changes will also aid
margins and space to continue.

ICICI Securities Ltd | Retail Equity Research

Page 3

With a strong balance sheet supported by robust FCFs, strong return

ratios and stable high margin profile, the financials are impressive. Bosch
has justifiably traded at a premium to the rest of the auto ancillary pack
considering its business profile strength and financial profile. With the
economic cycle likely to have bottomed out, we expect multiples to
further expand going into elections. With the current uncertainty in the
markets, we value Bosch at ~15% discount to its three-year average oneyear rolling EV/EBIDTA multiple of ~18x to 16x EV/EBIDTA CY15E and
recommend BUY with a target price of | 10700.

Bosch is trading near the higher end of its one-year

Exhibit 6: One-year rolling EV/EBIDTA band

EV/EBIDTA valuation band. However, we believe in these

35000

uncertain times, the earnings pedigree and business

30000

profile strength of Bosch will ensure valuations remain at

these elevated levels. We have still valued Bosch at

25000

~15% discount to its three-year average one-year rolling

20000
(|)

EV/EBIDTA multiple to 16x

15000
10000
5000

EV

20.3x

17.9x

16.2x

13.8x

13.0x

Sep-13
Jan-14

Sep-12
Jan-13
May-13

Sep-11
Jan-12
May-12

Sep-10
Jan-11
May-11

Sep-09
Jan-10
May-10

Sep-08
Jan-09
May-09

Sep-07
Jan-08
May-08

Sep-06
Jan-07
May-07

Jan-06
May-06

11.4x

Source: Company, ICICIdirect.com Research

Exhibit 7: Revised financials (Consolidated)

Particulars

CY14E
Old
9,706.3
1,544.8
15.9
1101.3
350.7

Revenue
EBITDA
EBITDA Margin
PAT
EPS

CY15E

New
9756.2
1486.0
15.2
1070.4
340.9

% Change
0.5
(3.8)
-67 bps
(2.8)
(2.8)

Old
11,115.5
1,872.0
16.8
1372.4
437.1

New
11418.2
1858.7
16.3
1392.2
443.4

% Change
2.7
(0.7)
-52 bps
1.4
1.4

Source: Company, ICICIdirect.com Research

Exhibit 8: Valuation

CY12
CY13E
CY14E
CY15E

Revenues
(| cr)
8659.1
8820.1
9756.2
11418.2

Growth
(%)
1.9
10.6
17.0

EPS
(|)
305.2
281.8
340.9
443.4

Growth
(%)
-7.7
21.0
30.1

PE
(x)
30.8
33.4
27.6
21.2

EV/EBITDA
(x)
20.1
20.9
17.9
13.8

RoNW
(%)
17.2
14.1
15.1
16.9

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 4

RoCE
(%)
17.1
14.1
14.5
16.7

Financial summary
Profit and loss statement

Cash flow statement

(| Crore)

(Year-end March)
Total operating Income
Growth (%)
Raw Material Expenses

CY12

CY13E

CY14E

CY15E

8,659.1

8,820.1

9,756.2

11,418.2

(| Crore)
(Year-end March)

CY12

CY13E

CY14E

CY15E

Profit after Tax

958.3

884.7

1,070.4

1,392.2

6.0

1.9

10.6

17.0

Add: Depreciation

367.0

384.2

441.7

472.4

4,753.4

4,782.3

5,288.3

6,094.2

(Inc)/dec in Current Assets

-63.7

-202.5

-252.3

-513.7

Employee Expenses

1,037.1

1,191.2

1,344.3

1,525.8

Inc/(dec) in CL and Provisions

Other Expenses

1,388.8

1,555.5

1,657.6

1,961.4

CF from operating activities

-54.6

310.9

120.6

396.0

1,207.0

1,377.2

1,380.4

1,746.9

Total Operating Expenditure

7,309.6

7,529.0

8,270.2

9,559.5

(Inc)/dec in Investments

114.9

-666.0

-260.0

-545.0

EBITDA

1,349.5

1,291.0

1,486.0

1,858.7

(Inc)/dec in Fixed Assets

-735.0

-497.4

-650.0

-500.0

Growth (%)

-10.7

-4.3

15.1

25.1

Depreciation

367.0

384.2

441.7

472.4

Interest

Others

122.6

-41.8

-21.5

-45.5

CF from investing activities

-497.5

-1,205.2

-931.5

-1,090.5

5.5

2.9

1.7

0.7

369.2

352.6

478.0

580.0

1,346.2

1,256.6

1,520.6

1,965.6

0.0

0.0

110.0

0.0

Total Tax

387.9

371.9

450.2

573.4

PAT

958.3

884.7

1,070.4

1,392.2

Net Cash flow

535.7

-45.1

164.6

330.9

Growth (%)
EPS (|)

-14.6
305.2

-7.7
281.8

21.0
340.9

30.1
443.4

Opening Cash
Closing Cash

951.5
1,487.2

1,487.2
1,442.1

1,442.1
1,606.7

1,606.7
1,937.6

CY13E

CY14E

CY15E

Other Income
PBT
Exceptional items

Source: Company, ICICIdirect.com Research

Issue/(Buy back) of Equity

0.0

0.0

0.0

0.0

-60.4

-53.5

-10.0

-70.0

Dividend paid & dividend tax

-219.0

-200.7

-237.2

-255.5

Others

100.1

34.2

-38.8

-0.7

CF from financing activities

-179.3

-220.0

-286.1

-326.2

Inc/(dec) in loan funds

Source: Company, ICICIdirect.com Research

Balance Sheet

Key ratios
(| Crore)

(Year-end March)

CY12

CY13E

CY14E

CY15E

(Year-end March)

CY12

Per share data (|)

Liabilities
31.4

31.4

31.4

31.4

EPS

305.2

281.8

340.9

443.4

Reserve and Surplus

5,541.9

6,262.9

7,059.0

8,195.7

Cash EPS

422.1

404.1

481.6

593.9

Total Shareholders funds

BV

1,775.0

2,004.6

2,258.2

2,620.2

60.0

55.0

65.0

70.0

473.6

459.3

511.7

617.1

Equity Capital

5,573.3

6,294.3

7,090.4

8,227.1

Total Debt

185.0

131.5

121.5

51.5

Other non-current Liabilities

251.8

290.8

340.8

374.8

6,010.1

6,716.6

7,552.7

8,653.4

EBITDA Margin

15.6

14.6

15.2

16.3

Gross Block

3,947.9

4,445.9

5,095.9

5,595.9

PBT / Net sales

16.0

14.5

15.9

17.6

Less: Acc Depreciation

Total Liabilities
Assets

DPS
Cash Per Share
Operating Ratios (%)

3,084.6

3,469.5

3,911.1

4,383.6

PAT Margin

11.1

10.0

11.0

12.2

Net Block

863.3

976.4

1,184.8

1,212.3

Inventory days

47.5

51.0

47.0

46.0

Capital WIP

417.1

417.1

417.1

417.1

Debtor days

40.3

45.0

42.0

42.0

44.3

45.3

45.5

45.5
16.9

Total Fixed Assets

1,280.4

1,393.5

1,601.9

1,629.4

Creditor days

Investments

1,519.8

2,185.8

2,445.8

2,990.8

Return Ratios (%)

Inventory

1,095.7

1,207.3

1,230.2

1,409.1

RoE

17.2

14.1

15.1

Debtors

1,021.0

1,073.4

1,191.0

1,393.8

RoCE

17.1

14.1

14.5

16.7

878.7

913.3

1,009.8

1,114.7

RoIC

24.3

19.2

19.7

23.1

Loans and Advances

Other current assets

Valuation Ratios (x)

140.3

144.3

159.5

186.7

Cash

1,487.2

1,442.1

1,606.7

1,937.6

P/E

30.8

33.4

27.6

21.2

Total Current Assets

4,622.9

4,780.3

5,197.2

6,041.9

EV / EBITDA

20.1

20.9

17.9

13.8

Creditors

930.4

1,064.6

1,099.4

1,286.6

EV / Net Sales

3.2

3.1

2.8

2.3

Provisions

506.5

473.1

488.5

571.7

Market Cap / Sales

3.5

3.4

3.1

2.6

Other Current Liabilities

456.9

666.9

737.4

863.0

Price to Book Value

5.3

4.7

4.2

3.6

Total Current Liabilities

1,893.8

2,204.7

2,325.3

2,721.3

Solvency Ratios

Net Current Assets

2,729.1

2,575.7

2,871.9

3,320.6

Debt/Equity

0.0

0.0

0.0

0.0

Deferred Tax Asset

Other non-current Assets
Application of Funds

255.2
225.6
6,010.1

298.9
262.7
6,716.6

342.6
290.5
7,552.7

372.6
339.9
8,653.4

Current Ratio
Quick Ratio

2.4
1.9

2.2
1.6

2.2
1.7

2.2
1.7

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 5

Company Description
Bosch is a leading supplier of technology and services in the areas of
automotive and industrial technology, consumer goods and building
technology. In India, Bosch Ltd is the flagship company of the Bosch
Group and is a leading global supplier of technology & services. The
Bosch Group is a leading global supplier of technology and services and
comprises Robert Bosch GmbH and ~360 subsidiaries and regional
companies in ~50 countries with ~77,000 patents and utility models to its
name. Bosch Ltd also has among the largest distribution networks of
spare parts in the country with after-market sales contributing ~25% of its
turnover. It has plants spread across Nashik, Pune, Ahmedabad, Jaipur,
Goa, Bangalore, Coimbatore and Chennai, which are close to its major
clients. Bosch also has a strong dealer network, which spans ~1000
towns across the country, facilitating product availability and after-sales
services.
Exhibit 9: Recommendation History
12,000

11,000

10,000

9,000

8,000
Apr-13

Jun-13

Jul-13

Sep-13
Price

Oct-13

Dec-13

Jan-14

Feb-14

Target Price

Source: Company, ICICIdirect.com Research

Exhibit 10: Recent Releases

Date
15-Oct-13
13-Nov-13
8-Jan-14

Event
Initiating Coverage
Q3CY13 Result Update
Q4CY13 Preview

CMP
8586
8816
9865

Target Price
9360
9360
9360

Rating
HOLD
HOLD
HOLD

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 6

ICICIdirect.com Research coverage universe (Auto & auto ancillaries)

Sector / Company
Amara Raja (AMARAJ)
Apollo Tyre (APOTYR)
Ashok Leyland (ASHLEY)
Bajaj Auto (BAAUTO)
Balkrishna Ind. (BALIND)
Bharat Forge (BHAFOR)
Eicher Motors (EICMOT)`
Escorts (ESCORT)*
Exide Industries (EXIIND)
Hero Mototcorp (HERHON)
JK Tyre & Ind (JKIND)
M&M (MAHMAH)
Maruti Suzuki (MARUTI)
Motherson (MOTSUM)
Tata Motors (TELCO)
Bosch (MICO)

EPS (|)
CMP
M Cap
(|)
TP(|) Rating
(| Cr) FY13 FY14E FY15E
395
380 Hold
6,747 16.8 22.3 24.6
133
139 Hold
6,704 12.2 18.6 18.5
16
15 Hold
4,164 -1.5
0.2
0.7
1,943 2,450
Buy 56,225 105.2 115.9 139.5
385
350 Hold
3,722 37.6 50.2 50.7
382
362 Hold
8,908 10.6 15.4 24.7
5,140 5,400 Hold 13,883 145.5 240.9 312.2
115
85
Sell
1,373 14.1 15.5 17.1
111
90
Sell
9,427
6.1
5.2
5.5
1,964 2,100 Hold 39,221 106.1 104.7 136.1
137
174
Buy
563 63.1 90.4 91.3
973 1,033 Hold 57,438 59.8 67.4 94.3
1,592 1,663 Hold 48,110 79.2 91.5 117.0
232
239 Hold 20,425
8.0 12.2 15.0
416
475
Buy 123,727 31.0 44.7 52.7
9,450 10,700
Buy 29,673 281.8 340.9 443.4

P/E (x)
EV/EBITDA (x)
FY13 FY14E FY15E FY13 FY14E FY15E
23.5 17.7 16.1 12.0 9.6
8.4
10.9
7.1 7.2
4.0 3.8
3.5
-10.2 77.3 21.6 202.5 12.6
7.8
18.5 16.8 13.9 14.3 14.3 11.6
8.8
6.6 6.6
7.4 6.1
5.5
36.0 24.9 15.5 12.3 9.5
6.9
35.3 21.3 16.5 21.4 10.7
7.0
6.8
6.2 5.6
3.5 3.1
2.5
18.0 21.2 20.3 11.0 11.4 10.9
18.5 18.8 14.4 11.0 12.1 11.0
2.2
1.5 1.5
3.1 2.9
2.8
16.3 14.4 10.3 10.1 8.6
7.5
20.1 17.4 13.6 10.1 8.0
6.4
28.8 19.0 15.5
8.5 6.7
5.1
11.7
8.2 6.9
4.7 3.5
3.4
32.9 27.2 20.9 20.6 17.6 13.6

RoCE (%)
RoE (%)
FY13 FY14E FY15E FY13 FY14E FY15E
33.6 36.2 32.4 27.1 27.8 24.7
22.5 20.1 18.8 21.8 18.0 17.2
-4.0 3.2 7.5 -10.3
1.4
4.9
43.5 43.5 41.6 38.5 35.1 34.9
16.2 16.4 14.4 25.5 16.2 16.4
9.1 12.4 17.9 11.0 14.0 19.0
18.0 23.0 26.5 19.1 25.1 25.6
9.9 11.2 10.8
9.4
9.6
9.7
19.6 16.7 15.7 15.3 12.0 11.6
42.8 39.7 42.9 42.3 33.9 35.2
20.2 19.9 17.5 23.4 25.4 20.4
20.9 20.8 18.7 22.0 20.8 23.5
11.9 14.3 15.6 12.9 13.1 14.6
22.0 26.1 30.0 26.3 32.4 32.2
23.2 23.8 23.5 26.3 26.5 25.8
14.1 15.1 16.9 14.1 14.5 16.7

Source: Company, ICICIdirect.com Research SY~ September Year end

ICICIdirect.com Universe price movement vis--vis BSE Auto index

Exhibit 11: OEM comparison with BSE Auto
The chart compares the movement of OEM stocks in the
ICICIdirect.com Universe with the BSE Auto index, thereby
reflecting the degree of mimicking of the index

BSE Auto

Since January 2013, Bajaj Auto and Maruti have

Escorts

outperformed while Ashok Leyland has underperformed in

comparison to the index by being divergent on the upside
and downside, respectively

Jan-13

Mar-13

May-13

Jul-13

BSE Auto
Tata Motors
Hero MotoCorp

Sep-13

Bajaj
M&M
Ashok Leyland

Nov-13

Jan-14

Maruti
Escorts
Eicher Motors

Source: Company, ICICIdirect.com Research

Exhibit 12: Ancillaries comparison with BSE Auto

The chart compares the movement of auto ancillary
stocks in the ICICIdirect.com universe with the BSE Auto

BSE Auto

index

Motherson Sumi

The volatile nature of smaller ancillary companies is

reflected. These have met with numerous fluctuations with
the exception of larger market capitalisation companies like
Motherson Sumi, JK Tyre and Apollo Tyres that have
benefitted from low rubber prices. Other ancillary players
have struggled as OE demand has dried up

Jan-13

Mar-13

May-13

Jul-13

Sep-13

Nov-13

Jan-14

BSE Auto

Bharat Forge

Balkrishna

JK Tyres

Apollo Tyres

Motherson

Exide Inds

Amara raja

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 7

RATING RATIONALE

ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns

ratings to its stocks according to their notional target price vs. current market price and then categorises them
as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional
target price is defined as the analysts' valuation for a stock.
Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction;
Buy: >10%/15% for large caps/midcaps, respectively;
Hold: Up to +/-10%;
Sell: -10% or more;

Pankaj Pandey

Head Research

pankaj.pandey@icicisecurities.com

ICICIdirect.com Research Desk,

ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No. 7, MIDC,
Andheri (East)
Mumbai 400 093
research@icicidirect.com
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ICICI Securities Ltd | Retail Equity Research

Page 8