15015830800

1 August 2017
Motilal Oswal values your support in the

Asiamoney Brokers Poll 2017 for India
Today’s top research idea
Research, Sales and Trading team. Shilpa Medicare (Initiating Coverage): Injecting growth
We request your ballot. Product approvals, superior execution to drive earnings; Buy with TP of 805
v We believe that Shilpa Medicare (SLPA) is on cusp of strong growth in earnings led
by product approvals in US market. From just an API player, it has forward
integrated and transformed itself into formulator with revenue rising from from
nil till 9MFY17 to Rs3.3b in FY19E. The products are majorly in oncology space
Market snapshot with 23 ANDAs pending for approval.
v We expect its base business (CRAMS), which currently forms 52% of total sales, to
Equities - India Close Chg .% YTD.% remain stable and sustainable with 13% CAGR over FY17-20. We value SLPA at a
Sensex 32,515 0.6 22.1 premium valuation of 25x 12M forward earnings due to strong growth visibility
Nifty-50 10,077 0.6 23.1 from US market, backed by healthy product pipeline, which would also support
Nifty-M 100 18,515 0.2 29.0 margins improvement. We initiate with Buy rating and target price of INR805.
Equities-Global Close Chg .% YTD.%
S&P 500 2,470 -0.1 10.3 Research covered
Nasdaq 6,348 -0.4 17.9 Cos/Sector Key Highlights
FTSE 100 7,372 0.0 3.2 Shilpa Medicare (INITIATING COVERAGE): Injecting growth
DAX 12,118 -0.4 5.5 Financials SBIN cuts SA deposits rate, other banks likely to follow suit
Hang Seng 10,828 0.7 15.3 Pidilite Inds Focus on double-digit volume growth
Nikkei 225 19,925 -0.2 4.2 Godrej Consumer Price hike-led sales growth in India, Indonesia drags international performance
Commodities Close Chg .% YTD.% Shree Cement EBITDA beat driven by better realization and lower other expenses
Brent (US$/Bbl) 52 1.0 -5.8 Siemens In-line operational performance; expensive valuations warrant Neutral
Gold ($/OZ) 1,268 0.7 9.3 Interglobe EBITDAR above est. led by higher yields and lower fuel cost
Cu (US$/MT) 6,336 0.6 14.7 Tech Mahindra Significant 1Q beat drives 9.5% FY18 earnings upgrade
LIC Housing Fin. Under pressure
Almn (US$/MT) 1,896 0.6 11.3
Shriram Trans. Strong quarter; Reaping the benefits on cost of funds
Currency Close Chg .% YTD.%
Torrent Pharma. Weak revenue; margins remain stable
USD/INR 64.1 -0.1 -5.5 Coromandel Intl Strong performance; better monsoon to aid growth
USD/EUR 1.2 0.2 11.2 GE T&D India Operating performance above expectations; Maintain Neutral
USD/JPY 110.6 -0.6 -5.5 Hexaware Tech. Beat-and-raise as revenue momentum continues
YIELD (%) Close 1MChg YTDchg Equitas Holdings Steady shift to secured products; at PAR delinquencies in MF up marginally
10 Yrs G-Sec 6.5 0.0 0.0 Automobiles Industry witnesses inventory build-up to meet festive demand
10 Yrs AAA Corp 7.5 0.0 0.0 Metals Weekly Steel and its input prices moving up across the world
Flows (USD b) 31-Jul MTD YTD Results Flash BHE | CCRI | RADIOCIT
FIIs -0.2 0.4 8.8 Results Expectation JSTL| MRCO | PWGR | SCUF
DIIs 0.3 1.0 4.3
Volumes (INRb) 31-Jul MTD* YTD*
Piping hot news
Cash 324 301 288 SBI reduces savings rate, sets stage for RBI rate cut
F&O 3,386 5,806 5,041 v State Bank of India (SBI) cut the interest rate on savings accounts with balance
Note: YTD is calendar year, *Avg of up to Rs1 crore by 50 basis points to 3.5%—the first time the key rate…
Chart of the Day: Shilpa Medicare - Injecting growth

Potential for US revenue to grow at strong rate
Research Team (Gautam.Duggad@MotilalOswal.com)

Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
In the news today
Kindly click on textbox for the detailed news link
1 2
Crackdown on power theft by
NCLT order may help revive Nagarjuna Oil's TN refiner
Yogi Adityanath government
The appointment of an insolvency resolution professional (IRP) for
gives rise to UP electricity bill Nagarjuna Oil Corporation Ltd (NOCL) by the Chennai Bench of the
collection by 28.5 pct National Company Law Tribunal (NCLT) is expected to help the company
Uttar Pradesh witnessed a 28.5% revive its refinery project in Tamil Nadu. NOCL’s 6-million-tonne refinery
rise in electricity bill collection in on the east coast of Tamil Nadu was supposed to be commissioned in 2012
the first quarter of FY18. at a cost of about Rs 3,500 crore, but cyclone Thane stalled it…
Collection in the April-June period
by Uttar Pradesh utilities was Rs
7,822 crore…
3 4
Boeing expects India orders
worth $290 billion over next Infosys, TCS, Tech Mahindra
20 years see workforce shrink for the
American plane maker Boeing Co.
has upgraded its India demand
first time
The $154 billion Indian 5
forecast and now expects airlines information technology (IT) sector,
once India’s largest creator of
Snapdeal to lay off 950 to 1000
in the world’s fastest growing
aviation market to order as many jobs, is now struggling to even add employees; no merger with
as 2,100 planes worth $290 billion to its workforce. For the first time, rival Flipkart
over the next 20 years… three of the five largest IT Beleaguered e-retailer Snapdeal
companies saw their workforce said on Monday a proposed deal
shrink in the quarter ended 30 to merge with rival Flipkart had
June… been called off. The e-commerce
firm will, nevertheless, continue to
operate as a smaller entity by
laying off close to 950-1,000
6 7 staffers, company executives told
FE…
State electricity boards hurting Birla Corporation planning to

renewable power by reneging invest around Rs 2400 crore to
on contracts set up cement plant in
Rapidly falling prices of renewable Maharashtra
power, under normal M P Birla Group company Birla
circumstances, should help the Corporation on Monday said it is
government achieve its 2022 planning to invest around Rs 2,400
target of 175GW on such crore for setting up a greenfield
electricity from both wind and cement manufacturing plant in
solar sources —by then, hopefully, Maharashtra...
improvements in storage
technology will also make …
1 August 2017 2
Initiating Coverage | Sector: Healthcare
Shilpa Medicare
BSE Sensex S&P CNX
32,310 10,015 CMP: INR646 TP: INR805(+24%) Buy
Injecting growth
`
Stock Info Product approvals, superior execution to drive earnings

Bloomberg SLPA IN
Equity Shares (m) 80 n Shilpa Medicare (SLPA) has been engaged in the manufacture of active
52-Week Range (INR) 787 / 517 pharmaceutical ingredients (APIs) since 1987. However, over a period of time, it
1, 6, 12 Rel. Per (%) -2/-25/-4 has shifted its focus toward creating a niche in pharmaceutical manufacturing. In
M.Cap. (INR b) 57.1 the process, it has developed a strong capability in manufacturing oncology APIs
M.Cap. (USD b) 0.8 and formulations. Besides this, SLPA is investing in novel drug delivery systems
Avg Val, INRm 43 (NDDS) and biotechnology.
Free float (%) 45.3 n We believe that SLPA is well poised to deliver robust earnings growth over the
next 2-3 years, led by the commencement of sales in the US market and the
Financial Snapshot (INR m)
introduction of more products in the EU market.
Y/E Mar FY17 FY18E FY19E
Net Sales n In our view, SLPA has the necessary manufacturing capacity and the US FDA
7,836 10,682 14,028
EBITDA 1,754 2,457 3,507 clearances to succeed in both APIs and formulations. It has done well on the
PAT 1,123 1,689 2,435 compliance part in recent past. The company also has a healthy pipeline of ~23
EPS (INR) 14.0 21.1 30.4 pending ANDAs (owned and for partners combined).
Gr. (%) 6.2 50.5 44.2 n We expect its base business (custom synthesis) to remain stable following two
BV/Sh (INR) 114.4 134.3 163.1 years of strong growth, as volume off-take by ICE (JV partner) has reached a
P/E (x) 46.2 30.7 21.3 steady base.
P/BV (x) 5.7 4.8 4.0 n The five-year average P/E for SLPA stands at 21x. P/E multiples for many pharma
RoE (%) 14.4 17.0 20.4
companies are lowered due to slowdown in the US business on account of
RoCE (%) 11.5 12.9 16.4
regulatory hurdles/pricing pressure in the base business. However, we value SLPA
Shareholding pattern (%) at a premium valuation of 25x 12M forward earnings due to strong growth
As On Mar'17 Dec'16 Sep'16 visibility from the US market, backed by a healthy product pipeline, which would
Promoter 54.7 54.7 56.9 also support margins improvement. We expect US sales (just started in 4QFY17) to
DII 0.1 0.1 0.1 increase to INR3.3b by FY19, with potential to grow 50% YoY in FY20 as well. On
FII 30.0 26.0 15.2 overall basis, we expect revenue and PAT CAGR of 29% and 41%, respectively,
Others 15.2 19.2 27.8 over FY17-20E.
FII Includes depository receipts
n We thus initiate coverage on SLPA with a Buy rating and a price target of INR805
on 12M forward earnings.
Shilpa Medicare Superior execution in US market to drive sales and PAT
Injecting growth n With capex in APIs/formulations already behind and regulatory clearances in
place for both these businesses, we expect strong revenue and profit
growth over the next 2-3 years. SLPA has about 26 DMFs and 25 ANDAs filed
till date.
n There are already two ANDA approvals in place, and the company has a
healthy pipeline of ~23 ANDAs awaiting approvals. We expect SLPA to grow
its revenues in the US market from nil in December 2016 (no business until
then) to ~INR3.3b in FY19, subject to product approvals.
JV formation secures base business of CRAMS
n The base business (custom synthesis) has witnessed strong 37% revenue CAGR.
Tushar Manudhane
It constituted ~60% of FY16 sales due to higher off-take by JV partner, ICE.
+91 22 3010 2498
tushar.manudhane@motilaloswal.com n The shift of this business to the JV in December 2016 and the doubling of
capacity under this JV might curtail revenues due to a change in accounting.
However, profit would rise with greater consolidated-level efficiency.
1 August 2017 3
Stock Performance (1-year)
Capex in progress for future growth
n SLPA has guided for further INR4.5b capex over two years toward R&D,
enhancing API/formulation capacities and investing in bio-similars. This would
strengthen its foundation for future growth.
Valuation and view

n Many pharma companies have been de-rated over the past year due to
slowdown in the US business on account of regulatory woes/pricing pressure on
the base business. However, we value SLPA at 25x FY19E earnings, given strong
growth visibility over FY17-19E, backed by approved products and a strong
pipeline pending approvals. The US product pipeline has the potential to drive
US revenue growth of ~45% YoY in FY20 as well. Relatively superior margin from
the US business would also improve overall margin for SLPA.
n We expect sales, EBITDA and PAT CAGR of 29%, 36% and 41% to INR16.8b,
INR4.3b and INR3b, respectively, over FY17-20E. Assuming PAT growth and
improving return ratios, we value SLPA at 25x 12M forward earnings. We thus
initiate coverage on the stock with a Buy rating and a price target of INR805.
n At CMP of INR647, SLPA trades at 30.7x FY18E EPS of INR21.1 and 21.3x FY19E
EPS of INR30.4.
n Our sensitivity analysis indicates downside of 9.9% in bear case, upside of 24.8%
in base case and 65% in bull case from the current levels.
Risks
n Delay in approval for its products
n Longer-than-expected time taken to execute in terms of manufacturing and
selling
n Higher-than-expected competition for its key products
n Any untoward outcome of future regulatory inspections, which may have an
impact on existing business and/or future product approvals
1 August 2017 4
Sector Update | 31 July 2017
Financials
SBIN cuts SA deposits rate, other banks likely to follow suit
Expect reduction in cost of deposits by ~15bp and higher PBT benefit
n The State Bank of India (SBIN) has lowered the rate on savings deposits up to INR10m
by 50bp to 3.5% from the existing rate of 4%. According to management, savings
accounts with balances of INR10m and below contribute ~90% of overall savings
deposits for the bank, and thus, the cut in rates could lead to interest savings of
INR44.5b on annualized basis (21% of estimated FY18 PBT).
n In our view, other banks are likely to follow suit, which should lead to FY18E interest
cost savings of ~INR136b for the banking sector. In our view, 80% of system SA
deposits are below INR10m.
n While banks with low RoA and high SA balance (PSU banks) are likely to be the key
beneficiaries of the same, MCLR cuts in the ensuing quarters cannot be ruled out,
thereby likely negating the benefit of SA rate cut.
n Among the high SA balance banks under our coverage, we like HDFCB, SBIN and
ICICIBC. We expect the emerging private banks to be more aggressive now to mobilize
SA deposits. These banks now will have greater headroom to cut rates without losing
the customer. We like YES and KMB among the emerging names.
SA rate cut – a step in the right direction…
As of FY17, total system deposits of ~INR106t include ~INR34t of savings deposits.
Assuming ~80% of SA deposits have balances of INR10m and below, total interest
savings (assuming all banks cut SA rates) would amount to ~INR136b for FY18. In our
view, for SBI, the 50bp SA rate cut would lower cost of deposits/cost of funds by
~15bp for FY18, leading to FY18 PBT/PAT uptick of INR44.5b (+21%)/INR31b (+21%)
and RoA/RoE uptick of 9bp/160bp from our present estimate of 0.43%/8%.
…however, PBT impact will be partially offset by MCLR cut
A reduction in savings rates will also bring down marginal cost of funds, leading to a
reduction in MCLR for banks with a lagged effect. This should lower yields and partly
offset interest cost savings due to a reduction in cost of deposits, thereby fading the
positive impact on PBT/PAT.
Prefer SBIN, ICICIBC and HDFCB among large banks
Among the high SA balance banks in our coverage universe, we like HDFCB, SBIN and
ICICIBC. We expect the emerging private banks to be more aggressive now to
mobilize SA deposits. These banks will also now have greater headroom to cut rates
without losing the customer. Our back-of-the-envelope calculation suggests that the
large private banks (if not passed on) could see profit upgrade of 2-3% from a 50bp
cut in SA deposits rate. PSU bank profit upgrade could be 15%.
Exhibit 1: Bank-wise market share of total and SA deposits
Kotak
FY17 data (INRb) System SBI PNB BoB HDFC Bank ICICI Bank Axis Bank Mahindra YES Bank IndusInd
Bank
Total deposits 1,06,199 20,448 6,217 6,017 6,436 4,900 4,144 1,574 1,429 1,266
SA deposits 33,939 7,639 2,142 1,510 1,936 1,718 1,260 415 328 270
% of SA deposits 32.0 37.4 34.4 25.1 30.1 35.1 30.4 26.4 22.9 21.4
SA market share 22.5 6.3 4.4 5.7 5.1 3.7 1.2 1.0 0.8
Deposits market share 19.3 5.9 5.7 6.1 4.6 3.9 1.5 1.3 1.2
% of SA deposits < INR10m 90 90 90 75 75 75 60 60 60
Impact on RoA (bp) 9 7 5 7 5 7 4 3
Impact on RoE (bp) 170 137 51 55 59 44 32 26
Source: MOSL, Company
1 August 2017 5
31 July 2017
CornerOffice
the
Interaction with the CEO

Focus on double-digit volume growth Pidilite Industries
All-time high adhesives margins a near-term risk
n Pidilite Industries (PIDI) is cautious on near-term performance, given GST implementation.

While it might take a month or so to assess the impact of GST, PIDI perceives it as a
positive reform for the Adhesives industry.
n Underlying demand remains healthy, and during our meeting, Mr Puri reiterated time and
again PIDI’s long-term target of delivering double-digit volume growth. He also reiterated
that current margins are unsustainable, prioritizing volumes over margins.
n While he highlighted the attractive long-term opportunity in a variety of categories, PIDI
does not intend to enter Paints unless it gets a disruptive proposition. The company has a Mr Bharat Puri—
Managing Director
strategy of deriving 2/3rd growth from “Growth” and “Pioneer” categories and the
Mr Puri’s association with
remaining 1/3rd from “Core” categories. It will continue to expand reach and make Pidilite began as an
significant investments in R&D to build a strong foundation for multiple years of growth. Independent Director in 2008.
He started his career with
Our view: Its track record of consistent delivery on volumes and profits drives our preference Asian Paints in 1982 and rose
for PIDI. We prefer PIDI to Asian Paints (both NEUTRAL-rated stocks), as return ratios have to the position of General
converged – Asian Paints’ RoCE has come off from mid-40s to late 20s in five years while its Manager - Sales & Marketing.
He then moved to Cadbury in
valuations have expanded. Even fixed asset turns are similar now. Asian Paints’ growth
1998 as Director of Sales and
moderation over the last 3-4 years also makes it relatively unattractive. Marketing for Cadbury India. In
Prioritizing volumes over margins 2002, he was appointed
Managing Director South Asia,
PIDI is prioritizing volume growth over margins. During our meeting, Mr Puri after which he moved to
emphasized the company’s overarching focus on growth, with margins at risk at current Singapore in 2006 where he
high levels: “When we have 12 months of economy without any disruption, we should was responsible for Strategy,
Marketing and Sales for the
go to double-digit volume growth.” In CY16, PIDI had expected record volume growth,
Asia Pacific region. In his last
and had planned accordingly, but demonetization played spoilsport. Mr Puri reminisced assignment, he was President -
about the good old days when the Consumer sector grew at 2x (GDP + Inflation), and Global Chocolate, Gum and
how growth fell to 1.5x (GDP + Inflation), and then to the current 1x (GDP + Inflation). Candy Categories at Mondelez
International, Zurich with
Yet, PIDI is confident of double-digit volume growth in the medium term. worldwide responsibilities for
Pricing premium vis-à-vis unorganized players to narrow the growth of these categories.
Mr Puri has completed his MBA
PIDI has candidly stated that its current margins are unsustainable. The company
from the Indian Institute of
currently enjoys 35% premium over unorganized players; in Adhesives, its margins are Management, Ahmedabad.
at all-time highs. PIDI sees this premium narrowing to 15-20%. Recent price increases
by the company have been modest; in 1QFY18, the gap between volume growth and value growth was 1%. PIDI
intends to pass on only ~75% of the cost inflation to customers and has lately been passing on the benefits of
declines in raw material costs in the form of discounts.
VAM prices have shot up due to unusual shutdowns and maintenance problems at suppliers’ end. Prices went up
from USD750/MT (recent low when crude prices corrected) to USD950/MT, and are now stabilizing at USD900/MT.
A large part of this price rise is due to supply disruptions rather than demand improvement.
GST – lot of flux; will take another month or so to figure out actual impact
In the run-up to GST, the wholesale channel was impacted the most in June. In July, sales are returning to normal,
but are also boosted because of re-stocking post the de-stocking in June. PIDI will need another 30-45 days to see
how sustainable the sales growth is and this will also be a function of tertiary consumer demand.
PIDI was first off the block in educating the supply chain on GST. The company started billing on 2nd July, while most
others are still finding their way and are sending consignments just now. It is too early to figure out the reset in the
channel. Most traders are still confused on billing.
1 August 2017 6
PIDI expects the proportion of official sales to go up post GST. For unorganized players, there will be a dramatic
difference between sales post-GST and sales pre-GST. Unorganized players are concerned about the repercussions if
the extent of their real sales is detected by the tax authorities. As far as the consumers are concerned, they were in
any case paying taxes in the earlier regime. It is just that now CGST and SGST are shown separately on the bill.
In the Arts & Stationery segment, business is largely unaffected. However, in the Building Materials segment
(Plywood, Hardware, and Paints & Allied Products), business is at a virtual stand-still. The unorganized segment is
sizable, and there has been very little supply in the last 20-25 days. Players are adopting a wait-and-watch strategy.
Consistently evaluating new categories, markets for future growth
PIDI classifies its business in three buckets: Core, Growth and Pioneer categories. Fevicol and Fevikwik constitute the
Core categories. Construction, Waterproofing, and Joinery segments constitute the Growth categories. In the
Pioneer categories, PIDI currently has Tiling Adhesives. PIDI targets to grow its Core categories at 1-1.5x GDP, its
Growth categories at 2-3x of GDP, and intends to ensure that today’s Pioneer categories become tomorrow’s
Growth categories. It targets 2/3rd growth from Pioneer and Growth categories, and 1/3rd from Core categories.
There are a lot of Pioneer categories in India. PIDI needs to choose a few, and make it BIG. While the company is
spoilt for choice, it will enter only those categories where it believes it has a ‘right to win’. It has invested
aggressively in R&D over the last four years – as a cost item, R&D has seen the highest jump. It has set up a research
lab in USA through a tie-up with University of North Carolina. It will be looking at technologies and how to make
them relevant for emerging markets.
PIDI keeps looking at markets similar to India. Some of these, including Turkey and Brazil are 7-8 years ahead of
India in a few categories. This enables PIDI to decide category adjacencies for future.
The company has set up a separate entity, PLUB Pidilite to focus large institutional (including government) business.
Waterproofing – successfully transitioned from Pioneer to Growth category
PIDI is a pioneer in the waterproofing segment. Having created the market, it now sees expanding the market as its
task. Eight out of 10 houses in India have waterproofing issues, and the opportunity is immense. Some competition
is welcome, as it will help to expand the size of the market. The big competition is from MNCs. World over, new
construction constitutes 70% of the waterproofing market and repairs constitute 30%. In India, repairs constitute
the major part of the waterproofing market.
PIDI believes the key ingredients for success are a strong brand, better-informed service offering, and wide reach.
Its Dr Fixit brand has become a dominant brand in the segment. PIDI has often emphasized its ‘four feet on the
street’ – two extra feet to educate the consumer on how to use the product. One of PIDI’s strengths is that its sales
personnel focus not only on sales but also on servicing and creating demand. The company has resisted suggestions
from consultants on consolidation of its sales force and thus expanding margins by a few basis points. For its
waterproofing products, PIDI reaches 25,000 paints dealers, next only to APNT.
The retail segment constitutes ~70% of Dr Fixit sales. However, institutional business has been a large growth driver.
PIDI believes RERA is positive; good builders will now look at waterproofing more seriously.
Competition / entry into paints / APNT’s Loctite adhesive launch

n PIDI will enter Paints only when it feels it can disrupt the category – does not want to be number-5 in Paints.
n APNT’s entry in Adhesives (Loctite launch in 1HCY16) has not created much flutter (corroborated by our own
dealer checks – we had released a note (link) after doing a survey of 46 dealers in Mumbai).
1 August 2017 7
31 July 2017
Q1FY18 Results Update | Sector: Consumer
Godrej Consumer
BSE SENSEX S&P CNX
32,515 10,077
CMP: INR1,035 TP:INR995(-4%) Neutral
Bloomberg GCPL IN Price hike-led sales growth in India, Indonesia drags international
Equity Shares (m) 340.6
M.Cap.(INRb)/(USDb) 518.0 / 7.8 performance
52-Week Range (INR) 1084 / 643 n Godrej Consumer’s (GCPL) 1QFY18 consolidated net sales grew 2.8% YoY to
1, 6, 12 Rel. Per (%) 2/13/14 INR21.7b (est. of +9%). Consol. EBITDA declined by 9.3% YoY to INR3.5b (est. of
Avg. Val, INRm/ Vol. 425
+2.9%) and adj. PAT by 9.2% YoY to INR2.3b (est. of +1.3%), representing a miss
Free float (%) 36.7
on all counts. Organic consolidated CC sales grew 6% YoY in 1QFY18, with India
Financials & Valuation (INR b) business exhibiting similar growth on organic CC basis.
Y/E Mar 2017 2018E 2019E
n Gross margin shrunk 20bp YoY to 53.4%. Higher adspend (+80bp YoY to 8.8%)
Net Sales 92.4 106.3 121.2
18.9 21.6 24.7
and other expenses (+150bp YoY to 17.6%) were partially offset by lower staff
EBITDA
PAT 12.9 14.7 16.8 costs (-40bp YoY to 11.1%). Thus, EBITDA margin shrunk 210bp YoY to 15.9%.
EPS (INR) 18.9 21.5 24.7 n India branded business volume growth came in flat YoY. All three key
Gr. (%) 12.4 14.0 14.6 domestic segments reported YoY sales growth, which came in 4% YoY for
BV/Sh (INR) 77.8 100.0 116.2 Household Insecticides, 7% YoY for Soaps and 5% YoY for Hair Color. India
RoE (%) 24.6 24.2 22.8
primary net sales growth stood at 6%, while secondary sales increased 9% YoY.
RoCE (%) 16.8 16.5 16.3
P/E (x) 54.7 48.0 41.9
n International: Organic CC net sales grew 7%, while EBITDA fell 5% YoY. CC sales
EV/EBITDA (x) 38.5 33.8 29.4 fell 11% YoY in Indonesia, but grew 26% YoY in Africa, 4% in LatAm and 24% in
Europe. Indonesia, Africa and LatAm saw EBITDA margin contraction of 390bp,
Estimate change
80bp and 610bp YoY, respectively, while Europe saw expansion of 260bp.
TP change
Rating change
n Valuation view: There is no material change to our EPS forecasts. At 42x March
2019E EPS, the stock is by no means undervalued. While earnings growth has
been more consistent than FMCG peers (FY17 was 8th straight year of double-
digit EBITDA and PAT growth), we believe the stock does not warrant a higher
multiple due to its exposure to various geographies, attendant currency risks
and relatively low RoE (mid-20s). Maintain Neutral with a revised TP of INR995
(39x June 2019E EPS, 10% premium to three-three average).
Quarterly Performance (Consolidated) (INR Million)

Y/E March FY17 FY18 FY17 FY18E FY18 Var.
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE (%)
Net Sales 21,144 23,563 23,916 23,805 21,728 27,333 28,461 28,753 92,428 106,273 23,110 -6.0%
YoY Cha nge (%) 6.5 11.3 8.9 11.8 2.8 16.0 19.0 20.8 9.7 15.0 9.0
EBITDA 3,806 4,631 5,063 5,414 3,452 5,509 6,168 6,466 18,915 21,594 3,883 -11.1%
Ma rgi ns (%) 18.0 19.7 21.2 22.7 15.9 20.2 21.7 22.5 20.5 20.3 16.8
YoY Growth (%) 21.6 13.7 12.0 19.5 -9.3 19.0 21.8 19.4 16.4 14.2 2.9
Depreci a ti on 327 358 363 369 374 393 417 430 1,416 1,614 359
Interes t 326 350 397 379 397 333 357 376 1,452 1,463 310
Other Income 166 194 294 350 282 213 221 213 1,004 928 149
PBT 3,330 4,118 4,474 4,972 2,960 4,996 5,614 5,872 16,894 19,446 3,364 -12.0%
Ta x 770 907 986 1,145 634 1,199 1,347 1,399 3,808 4,580 794
Ra te (%) 23.1 22.0 22.0 23.0 21.4 24.0 24.0 23.8 22.5 23.6 23.6
Adj PAT 2,561 3,212 3,489 3,827 2,327 3,797 4,266 4,433 13,088 14,826 2,570 -9.5%
YoY Cha nge (%) 18.3 7.3 5.0 21.4 -9.2 18.2 22.3 15.8 12.5 13.3 1.3
E: MOSL Estimates
1 August 2017 8
31 July 2017
1QFY18 Results Update | Sector: Cement
Shree Cement
BSE SENSEX S&P CNX
32,515 10,077
CMP: INR18,638 TP: INR22,360(+20%) Buy
Bloomberg SRCM IN EBITDA beat driven by better realization and lower other expenses
Equity Shares (m) 35 n Volume growth led by ramp-up in east: SRCM’s 1QFY18 volumes increased
M.Cap.(INRb)/(USDb) 649.3 / 9.7 ~15% YoY (-1% QoQ) to 5.89mt, led by capacity ramp-up in east, with utilization
52-Week Range (INR) 20560 / 12477
in excess of 90-95%. Realizations rose ~10% QoQ (+6.7% YoY) due to higher
1, 6, 12 Rel. Per (%) 5/3/0
cement prices in north and east markets. However, exit realizations were lower
Avg Val, INRm 287
Free float (%) 35.2 than average realization for the quarter. Revenue increased 15% YoY to
INR25.36b (est. of INR24.5b). Cement revenue stood at INR24.4b (+22% YoY),
Financials & Valuations (INR b)
with cement EBITDA at INR6.81b (+4% YoY). Power revenue declined 54% YoY to
Y/E Mar 2017 2018E 2019E
INR958m, with power EBITDA at -INR14m due to weak merchant power rates.
Net Sales 84.3 98.9 123.0
EBITDA 23.7 25.0 31.9 n Lower other expenses and higher realization drive margin improvement:
PAT 13.4 16.0 19.1 EBITDA of INR6.8b (-7% YoY) came in higher than our estimate of INR6.21b due
EPS (INR) 384.4 460.4 547.8 to lower other expenses and higher realization. Overall margin shrunk 6.4pp YoY
Gr. (%) 5.4 19.8 19.0 to 26.8% (+5.3pp QoQ) due to an increase in YoY unitary costing on higher freight
BV/Sh (INR) 2,210 2,623 3,125 costs (led by an increase in diesel prices and underlying freight rates) and power
RoE (%) 18.4 19.1 19.1 & fuel costs (led by a rise in petcoke prices).
RoCE (%) 17.5 17.7 18.0 n Capex and capacity addition plans: The company is likely to incur capex of
P/E (x) 48.5 40.5 34.0 INR12-13b in FY18 and INR14-15b in FY19 toward capacity addition, including 1)
P/BV (x) 8.4 7.1 6.0
3.6mt of GU in Rajasthan, 2) 2mt of GU in Bihar, 3) 0.9mt of GU in Bihar (will get
Estimate change commissioned by 2QFY18), 4) 2.8mt of clinker unit in Chhattisgarh and 5) 3mt of
TP change integrated unit in Karnataka.
Rating change n Deserves premium valuation: SRCM is the most cost-efficient player in the
industry. Its superior execution capability enables it to achieve RoIC of over ~50%
(FY19E). SRCM’s gross-block-to-capacity (GB/capacity) – currently at
~USD53/tonne – has been structurally trending downward, as the proportion of
brownfield expansion has increased. Its GB/capacity is at 28% discount to peers,
which is also reflected in its superior RoCE profile. In our view, SRCM deserves to
trade at premium valuations, and we thus value the cement business at 15x
FY20E EV/EBITDA to arrive at a target price of INR 22,360. Maintain Buy.
Quarterly Performance - Shree Cement (S/A) (INR mn)
FY17 FY18 FY17 FY18E FY18 Var.
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE (%)
Sales Dispat. (m ton) 5.13 4.57 4.91 5.93 5.89 5.30 5.65 6.42 20.54 23.25 5.90 0
YoY Change (%) 18.0 9.2 4.5 10.7 14.8 16.0 15.0 8.2 10.5 13.2 15.0
Realization (INR/Ton) 3,885 3,965 3,699 3,771 4,146 3,946 4,096 4,209 3,825 4,105 4,071 2
YoY Change (%) 11.8 9.6 7.2 13.9 6.7 -0.5 10.7 11.6 10.7 7.3 4.8
QoQ Change (%) 17.4 2.1 -6.7 1.9 9.9 -4.8 3.8 2.8 8.0
Net Sales 21,987 20,068 18,434 23,803 25,363 21,590 23,794 28,203 84,292 98,950 24,534 3
YoY Change (%) 27.9 17.2 2.2 19.1 15.4 7.6 29.1 18.5 16.5 17.4 11.6
Total Expenditure 14,678 13,506 13,744 18,691 18,563 16,836 17,905 20,601 60,619 73,905 18,316 -46
EBITDA 7,308 6,563 4,689 5,112 6,800 4,754 5,889 7,602 23,672 25,045 6,219 9
Margins (%) 33.2 32.7 25.4 21.5 26.8 22.0 24.8 27.0 28.1 25.3 25.3
Depreciation 1,540 4,322 3,176 3,109 2,312 2,000 2,000 4,367 12,147 10,678 3,120
Interest 276 293 411 314 329 320 320 349 1,294 1,318 320
Other Income 979 1,233 1,356 1,510 1,307 1,500 1,900 2,293 5,077 7,000 1,500
PBT before EO Exp 6,471 3,180 2,459 3,199 5,466 3,934 5,469 5,180 15,308 20,048 4,279 28
Extra-Ord Expense 0 0 21 0 0 0 0 0 0 0 0
PBT 6,471 3,180 2,438 3,199 5,466 3,934 5,469 5,180 15,308 20,048 4,279 28
Tax 1,394 265 83 154 1,065 393 547 2,125 1,917 4,010 642
Rate (%) 21.5 8.3 3.4 4.8 19.5 10.0 10.0 41.0 12.5 20.0 15.0
Reported PAT 5,077 2,915 2,354 3,045 4,401 3,540 4,922 3,054 13,391 16,039 3,637 21
Adj. PAT 5,077 2,915 2,375 3,045 4,401 3,540 4,922 3,054 13,391 16,039 3,637
YoY Change (%) 106.1 18.3 1.6 -51.4 -13.3 21.5 107.3 0.3 5.4 19.8 -28.4
1 August 2017 9
31 July 2017
3QFY17 Results Update | Sector: Capital Goods
Siemens
BSE SENSEX S&P CNX
32,515 10,077
CMP: INR1,452 TP: INR1,335(-8%) Neutral
Bloomberg SIEM IN In-line operational performance; expensive valuations warrant Neutral
Equity Shares (m) 356.1 n 3QFY17 operating performance came in line with expectations. On a reported
M.Cap.(INRb)/(USDb) 505.7 / 7.9
52-Week Range (INR) 1470 / 1011
basis, revenues increased 1.2% YoY to INR26.5b (in line with est. of INR26.3b;
1, 6, 12 Rel. Per (%) 4/9/-6 revenue from continuing business up 22% YoY), supported by strong growth in
Avg Val, INRm 265 Energy Management (+54% YoY) and Building Technologies (+25% YoY)
Free float (%) 25.0 segments. EBIDTA declined 2% YoY to INR2.3b, with the margin at 8.5% (-30bp
Financials & Valuations (INR b) YoY; est. of 8.4%). Net profit from operations rose 27% YoY to INR1.6b, in line
Y/E Sep 2016 2017E 2018E with our estimate of INR1.6b.
Net Sales 108.1 116.3 142.2 n Gross margin expanded 40bp YoY to 34.1% in 3QFY17. EBITDA margin of 8.5%
EBITDA 10.2 11.8 15.6 came in line with our estimate of 8.4%. EBIT margin from continuing business
PAT 6.3 8.6 11.9
expanded 30bp YoY to 6.0% on account of margin improvement across
EPS (INR) 17.8 24.3 33.3
Gr. (%) 5.2 36.2 37.3 segments, except for Power & Gas and Process industries & Drives.
BV/Sh (INR) 191.6 221.3 242.6 n Order inflow down 12% YoY; book-to-bill at 1.0x: Order intake for the quarter
RoE (%) 9.3 11.0 13.7 stood at INR28.5b (-12% YoY; IN32.2b in 3QFY16), led by delay in finalization of
RoCE (%) 15.1 15.8 19.2 large-ticket orders. The company’s book-to-bill stood at 1.0x, with order book
P/E (x) 79.6 58.4 42.6
position of INR112b.
P/BV (x) 7.4 6.4 5.8
n Valuation and view: We cut our FY17 estimates by 7% to factor in margin
Estimate change pressure on account of fluctuations in product mix, currency and accounting
TP change norm change. At CMP, SIEM trades at 63.9/43.7/38x its FY17/18/FY19E EPS of
Rating change INR22.7/33.2/38.1. Given expensive valuations, we maintain Neutral with a TP
of INR1,335, based on 35x FY19E EPS.
Quarterly Performance (Standalone) (INR Million)

FY16 FY17 MOSLe
Y/E September FY16 FY17
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QE 3Q Var %
Total Revenues 23,142 27,836 26,204 30,906 22,933 29,288 26,508 39,794 108,094 118,523 26,300 0.8%
Change (%) -12.8 4.9 10.3 -6.3 -0.9 5.2 1.2 28.8 1.4 12.7 0.4
EBITDA 1,888 3,218 2,303 2,414 2,337 2,786 2,255 3,819 10,176 11,197 2,200 2.5%
Change (%) -0.1 70.3 -7.9 -4.6 23.8 -13.4 -2.1 58.2 36.8 14.7 -5.9
As % of Revenues 8.2 11.6 8.8 7.8 10.2 9.5 8.5 9.6 9.4 9.4 8.4
Depreciation 586 590 625 462 483 502 480 460 2,263 1,924 625
interest 9 14 15 21 20 21 14 29 64 84 20
Other Income 411 270 279 683 623 529 731 819 1,645 2,701 740
Extra-ordinary Items 0 0 0 22,825 0 72 0 0 22,825 0 0
PBT 1,705 2,884 1,942 25,439 2,456 2,864 2,492 4,150 32,446 12,058 2,295 8.6%
Tax 592 1,003 661 770 856 1,001 863 1,085 3,148 3,805 677
Effective Tax Rate (%) 34.7 34.8 34.0 3.0 34.9 34.9 34.6 26.1 9.7 31.6 29.5
Reported PAT 1,113 1,881 1,282 24,670 1,600 1,863 1,629 3,065 29,298 8,253 1,618 0.7%
Adjusted PAT 1,113 1,881 1,282 1,845 1,600 1,791 1,629 3,065 6,346 8,086 1,618 0.7%
Change (%) 4.9 21.8 -23.8 7.1 43.8 -4.8 27.1 66.2 39.9 34.0 24.4
1 August 2017 10
31 July 2017
1QFY18 Results Update | Sector: Aviation
InterGlobe Aviation
BSE SENSEX S&P CNX
32,515 10,077
CMP: INR1,291 TP: INR1,312(+2%) Neutral
Bloomberg INDIGO IN EBITDAR above est. led by higher yields and lower fuel cost
Equity Shares (m) 361 IndiGo reported revenue of INR57.5b (in-line; +26% YoY, +19% QoQ) and EBITDAR of
M.Cap.(INRb)/(USDb) 411.2 / 6.2 INR19.5b (est. of INR17.5b; +28% YoY, +46% QoQ), led by lower fuel cost of INR17.9b (est.
52-Week Range (INR) 1170 / 790 of INR19.3b; +31% YoY, +1% QoQ). PAT of INR8.1b (est. of INR6.1b; +37% YoY, +84% QoQ)
1, 6, 12 Rel. Per (%) 9/11/-11 was further boosted by higher other income of INR2b (est. of INR1.5b; +25% YoY) and
Avg Val, INRm 757.9
lower depreciation of INR983m (est. of INR1.4b; -14% YoY).
Free float (%) 14.1
n EBITDAR above est.: 1QFY18 EBITDAR margin expanded to 34% from 33.4% in
Financials & Valuations (INR b) 1QFY17, led by higher yield of INR4.33 (est. of INR4.22; flat YoY, +9% QoQ) and
Y/E Mar 2017 2018E 2019E
lower fuel cost per ASK of INR1.19 (est. of INR1.25; +11% YoY, -5% QoQ).
Net Sales 185.8 239.0 303.4
EBITDA 21.4 34.1 46.5 n Surprised by lower fuel cost: While ATF price grew ~16% YoY, INDIGO’s fuel
PAT 16.6 23.0 33.8 cost per ASK rose 11% in 1QFY18, which management ascribed to increased
EPS (INR) 46.0 63.9 93.7 contribution of fuel-efficient A320Neo (~16% of fleet) and better fuel
Gr. (%) -16.6 38.8 46.6 procurement strategies.
BV/Sh (INR) 55.9 62.9 73.2
RoE (%) 86.2 107.5 137.7
n Lowered ASK addition guidance: Management has lowered its ASK addition
RoCE (%) 38.9 51.7 88.6 guidance to 20% YoY from 25% earlier for FY18 (incl. planned ATR operation).
P/E (x) 28.0 20.2 13.8 For 2QFY18, ASKs are expected to increase 15% YoY. Management expects to
P/BV (x) 23.1 20.5 17.6 increase capacity (ASKs) at the rate of 20% over FY18-20.
Adj.
13.0 10.1 8.4 n Raising estimates: We raise our earnings estimate by ~10/2% for FY18/19 to
EV/EBITDAR
factor in the revised ASK guidance. We believe lower capacity addition should
Estimate change result in better yields and higher load factor for INDIGO. Thus, for FY18/19E,
TP change we increase yield to INR4.21/4.35 (v/s INR4.14/4.3 earlier) and passenger load
Rating change factor (PLF) to 87/88% (v/s 86% earlier).
n Promoters to dilute stake: To meet promoter holding norms, INDIGO is
planning a follow-on public offer, which is likely to be a mix of a fresh issue and
an offer for sale. Promoters currently hold 85.8% stake in the company.
n Valuation and view: The stock trades at 13.8x FY19E EPS of INR93.7 and at 8.4x
FY19E adj. EV/EBITDAR. We value INDIGO at 14x FY19E EPS to arrive at a fair
value of INR1,312. Maintain Neutral.
Quarterly performance (INR Million)
Y/E March FY17 FY18E FY17 FY18E FY18 Var.
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE vs est
Net Sales 45,789 41,669 49,865 48,482 57,529 52,362 64,517 64,625 185,805 239,034 57,216 1%
YoY Change (%) 8.7 17.7 16.0 18.5 25.6 25.7 29.4 33.3 15.1 28.6 25.0
Fuel cost 13,674 15,524 16,712 17,734 17,929 19,969 21,851 23,358 63,644 83,108 19,320 -7%
Employee cost 4,789 5,080 5,273 5,339 5,843 5,957 6,530 8,179 20,482 83,108 6,200 -6%
Other expenses 12,046 11,388 13,471 12,087 14,250 13,127 14,767 16,165 48,992 58,309 14,184 0%
Total Expenditure 30,509 31,992 35,457 35,160 38,022 39,053 43,149 47,702 133,118 167,926 39,704 -4%
EBITDAR 15,279 9,677 14,409 13,322 19,507 13,309 21,369 16,923 52,687 71,108 17,512 11%
Margins (%) 33 23 29 27 34 25 33 26 28 30 31
Net Rentals 7,127 7,721 8,164 8,242 8,537 8,558 9,453 10,426 31,254 36,974 8,485 1%
EBITDA 8,152 1,956 6,245 5,080 10,970 4,751 11,916 6,497 21,433 34,134 9,028 22%
Margins (%) 17.8 4.7 12.5 10.5 19.1 9.1 18.5 10.1 11.5 14.3 15.8 21%
Depreciation 1,148 1,189 1,184 1,052 983 1,426 1,421 1,688 4,573 5,519 1,378 -29%
Interest 1,163 610 759 777 770 770 770 770 3,308 3,079 487 58%
Other Income 1,626 1,608 1,719 2,938 2,026 2,026 2,026 2,026 7,891 8,105 1,498 35%
PBT 7,467 1,765 6,022 6,190 11,243 4,581 11,752 6,065 21,443 33,641 8,660 30%
Tax 1,549 367 1,149 1,786 3,132 1,329 3,408 1,759 4,852 9,627 2,512 25%
Rate (%) 20.7 20.8 19.1 28.9 27.9 29.0 29.0 29.0 22.6 28.6 29.0
Reported PAT 5,918 1,398 4,873 4,403 8,111 3,253 8,344 4,306 16,592 24,014 6,149 32%
EPS 16.4 3.9 13.5 12.2 22.5 9.0 23.2 12.0 46.0 66.6 17.1 32%
YoY Change (%) -8.8 24.1 -25.9 -24.0 37.1 132.6 71.2 -2.2 -17.0 44.7 3.9
1 August 2017 11
RESULTS
FLASH 31 July 2017
Results Flash | Sector: Capital Goods
Bharat Electronics
BSE SENSEX S&P CNX
32,515 10,077
CMP: INR178 TP: INR200 Buy
We will revisit our estimates Results significantly beat estimates
post earnings call/management
interaction.
n Sales stood at INR17.3b (+98% YoY) v/s our estimate of INR11.7b. We note that
1QFY17 was a weak quarter, as shipments worth ~INR3b could not be shipped
out.
Y/E Mar 2017 2018E 2019E n Gross margin of 44.7% (-130bp YoY) was in line with our estimate of 45%.
Net Sales 86.1 110.1 122.8 n EBITDA stood at INR1.63b v/s our estimate of a loss of INR195m, with the
EBITDA 17.6 19.6 21.4 margin at 9.5% v/s our estimate of -1.7%. Employee costs rose 46% YoY to
NP 15.5 16.4 18.5 INR4.6b, primarily due to the impact of 7th Pay Commission.
EPS (INR) 6.9 7.3 8.3
n Other income declined in the quarter due to lower cash balance post the
EPS Gr. (%) 27.2 5.7 12.9
BV/Sh. (INR) 33.6 43.6 48.7
buyback in 3QFY17.
RoE (%) 20.6 16.8 17.0 n PAT stood at INR1.25b (+247% YoY) v/s our estimate of INR0.4b.
RoCE (%) 18.9 19.0 17.9
P/E (x) 23.1 22.5 21.5 Valuation and view: We will revisit our estimates post our interaction with
P/BV (x) 4.8 3.8 3.7 management. We maintain our Buy rating with a TP of INR200 @25x FY19E EPS.
Quarterly Performance (INR Million)

Y/E March FY17 FY18 FY17 FY18 MOSL
1QE 2Q 3QE 4QE 1QE 2QE 3QE 4QE 1QE Var
Sales 8714 17033 20867 39877 17248 20921 24775 47166 86119 110110 11715 47.2
Change (%) -20.8 15.9 37.2 23.7 97.9 22.8 18.7 18.3 17.5 27.9 34.4
EBITDA -467 3349 4828 9796 1633 2932 3823 11203 17617 19592 -195 -935.8
Change (%) -699 85 74 8 -450 -12 -21 14 28 11 -58
As of % Sales -5.4 19.7 23.1 24.6 9.5 14.0 15.4 23.8 20.5 17.8 -1.7
Depreciation 435 455 455 571 561 550 520 550 1915 2180 460
Interest 0 3 106 9 3 0 0 47 118 50 0
Other Income 1387 1714 776 909 723 850 1200 1227 4710 4000 1150
Exceptional items (reported) 0 0 0 0 0 0 0 0 0 0 0
PBT 486 4606 5043 10125 1793 3232 4503 11834 20294 21361 495 262.5
Tax 125 1178 1307 2208 540 711 991 2766 4818 5007 109
Reported PAT 361 3427 3735 7917 1253 2521 3513 9068 15476 16354 386 224.9
Change (%) -52.9 66.5 33.3 6.3 247.2 -26.5 -6.0 14.5 18.4 5.7 6.9
Adj PAT 361 3427 3735 7917 1253 2521 3513 9068 15476 16354 386 224.9
Change (%) -52.9 66.5 33.3 6.3 247.2 -26.5 -6.0 14.5 18.4 5.7 6.9
E: MOSL Estimates
1 August 2017 12
31 July 2017
1QFY18 Results Update | Sector: Technology
Tech Mahindra
BSE SENSEX S&P CNX
32,515 10,077
CMP: INR385 TP: INR490(+27%) Buy
Bloomberg TECHM IN Significant 1Q beat drives 9.5% FY18 earnings upgrade
Equity Shares (m) 976 n Weak but not to the extent thought: TECHM’s 1QFY18 CC revenue declined ~2.1%
M.Cap.(INRb)/(USDb) 375.9 / 5.9
QoQ, but was ahead of our estimate of a 3.4% decline, led by stabilization of LCC
52-Week Range (INR) 515 / 358
1, 6, 12 Rel. Per (%) -4/-32/-37
revenues and above-estimate BFSI performance. Including revenues from HCI (two
Avg Val, INRm 1293 months), CC revenue declined 0.6% v/s our estimate of -2.2%. EBITDA margin
Free float (%) 63.9 expanded 70bp QoQ to 12.7%, only slightly ahead of our estimate of 12.4%, helped
by improvement in LCC profitability. Significant forex gains (INR2.7b v/s estimate of
Y/E Mar 2017 2018E 2019E
INR1.8b) drove PAT beat (INR8b v/s estimate of INR6.5b).
Net Sales 291.4 307.6 344.0 n Profitability recovery visible: TECHM saw a 4.1% QoQ reduction in Software
EBITDA 41.8 42.2 49.9 Professionals headcount (3,407 employees), cost impact from which only accrued
PAT 27.5 30.2 32.7 toward the end of the quarter. Benefits from the same will fully reflect in 2Q
EPS (INR) 30.9 34.0 36.8 EBITDA margins, more than offsetting 30-40bp impact from wage hikes during the
Gr. (%) -11.9 9.9 8.3 period. Utilization at 77% including trainees was flat for the third quarter and down
BV/Sh (INR) 187.9 207.1 232.5 100bp YoY, and remains a few points below management’s target. These should
RoE (%) 18.4 17.4 16.9 drive margin improvement QoQ for the remainder of the year.
RoCE (%) 15.2 14.5 14.2 n Communications outlook optimistic, but with gestation: TECHM defended its
P/E (x) 12.5 11.3 10.5 growth in Communications v/s peers, highlighting that it has not lost any
P/BV (x) 2.1 1.9 1.7 business to competitors. Also, stabilization of operations in LCC is largely
behind, and the segment is already adding to growth in some geographies.
Estimate change Digital deals are also kicking in and growing in sizes too. Digital is also
TP change impacting Enterprise, changing the complexion of pipeline, driving the need for
Rating change significant organization-wide up-skill.
n Valuation view: Our earnings estimates for FY18/19 are up by 9.5%/1.6%. The
significant FY18 upgrade comes on the back of combined effect from forex
gains and revenue beat. TECHM trades at 11.4x/10.6x FY18/19E earnings.
There remains some tailwinds to improve profitability in the near term, which
will feed positively into valuation multiple. Improvement in Communications
revenue growth is an option value over and above the same. Our price target
of INR490 discounts FY18E earnings by 13x, implying an upside of 26%.
Maintain Buy.
Quarterly Performance (Consolidated) (
Y/E March FY17 FY18E FY17 FY18E Est. bp)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Revenue (USD m) 1,032 1,072 1,116 1,131 1,138 1,166 1,192 1,218 4,351 4,715 1,117 1.9
QoQ (%) 0.9 4.0 4.1 1.4 0.6 2.5 2.3 2.1 7.8 8.4 -1.3 188bp
Revenue (INR m) 69,209 71,674 75,575 74,950 73,361 75,797 78,106 80,386 291,408 307,650 71,979 1.9
YoY (%) 10.0 8.3 12.8 8.9 6.0 5.8 3.3 7.3 10.0 5.6 4.0 200bp
GPM (%) 29.5 30.6 30.7 26.9 28.0 28.7 29.4 29.9 29.4 29.0 27.4 58bp
SGA (%) 14.6 15.7 15.0 14.9 15.3 15.3 15.3 13.8 15.1 15.3 15.0 26bp
EBITDA 10,290 10,701 11,865 8,987 9,347 10,210 11,030 11,611 41,843 42,198 8,943 4.5
EBITDA Margin (%) 14.9 14.9 15.7 12.0 12.7 13.5 14.1 14.4 14.4 13.7 12.4 32bp
EBIT Ma rgi n (%) 12.0 11.5 12.4 8.2 9.4 10.2 10.9 11.2 11.0 10.5 8.9 49bp
Other i ncome 1,519 1,387 1,552 2,378 4,106 2,391 1,218 1,196 6,836 8,912 2,542 61.5
Interes t expens e 274 345 349 318 370 311 296 282 1,286 1,259 356 3.9
ETR (%) 25.9 30.8 20.2 28.2 25.4 23.5 23.5 23.5 26.0 24.0 23.5
PAT excl. BT amort & EOI 6,561 6,447 8,560 5,879 7,985 7,419 7,170 7,618 27,447 30,192 6,481 23.2
QoQ (%) -23.5 -1.7 32.8 -31.3 35.8 -7.1 -3.4 6.2 10.2
YoY (%) 5.4 -17.9 12.8 -31.5 21.7 15.1 -16.2 29.6 -12.0 10.0 -1.2
EPS (INR) 7.4 7.3 9.6 6.6 9.0 8.3 8.1 8.6 31.9 34.0 7.3
Headcount 107,216 111,743 117,095 117,693 115,990 120,350 123,517 126,413 117,693 126,413 115,532 0.4
Uti l excl . tra i nees (%) 78.0 78.0 77.0 77.0 77.0 78.4 78.6 78.9 77.5 78.3 76.7 27bp
Attri ti on (%) 21.0 19.0 18.0 17.0
Offs hore rev. (%) 36.6 36.5 36.1 35.7 36.3 36.4 36.1 36.2 36.2 36.2 35.5 80bp
1 August 2017 13
31 July 2017
1QFY18 Results Update | Sector: Financials
LIC Housing Finance

BSE SENSEX S&P CNX
32,515 10,077
CMP: INR692 TP: INR708 (+3%) Neutral
Bloomberg LICHF IN Under pressure
n LIC Housing Finance (LICHF) reported PAT of INR4.7b for 1QFY18, missing our
M.Cap.(INR b)/(USD b) 350.5/5.2
52-Week Range (INR) 794/470 estimate by 20%. Sharp sequential decline in margins and largely stable
1, 6, 12 Rel. Per (%) -12/7/17 provisions YoY (despite high base in 1QFY17) were the key reasons for the miss.
Avg Val. (INR m) 1259 Overall, it was a subdued quarter for LICHF.
Free float (%) 59.7 n Loan book growth remained in line with past trends at ~15% YoY, with retail
Financials & Valuations (INR b) loan book growth muted at 9-10% YoY. There was slight shift in mix towards
Y/E Mar 2017 2018E 2019E non-core loans. However, after two quarters of INR10b+ disbursements in
NII 36.5 39.1 44.2 builder loans, LICHF has reverted to average disbursements of INR4b-5b in this
PPP 32.4 34.2 39.0
segment. Also, disbursements in the core home loan segment were up 16% YoY.
Adj PAT 19.3 21.0 24.7
Adj EPS.INR 38.2 41.6 48.9
This was a key positive in the results.
PS Gr. (%) 16.3 8.7 17.7 n Margins declined sharply (11bp YoY, 47bp QoQ), driven by decline in both retail
BV/Sh (INR) 212.1 245.5 284.7 and non-retail yields. Calculated spreads of 1.46% are the lowest in the last 12
RoAA (%) 1.5 1.4 1.5 quarters. We believe loan yields would decline a further 30-40bp in the near
RoE (%) 19.4 18.2 18.5 term. This should be offset by decline in cost of funds, though we expect CoF re-
Payout (%) 18.8 19.7 19.7
pricing in the medium-to-long term.
Valuations
P/E (x) 18.1 16.6 14.1
n GNPL ratio was up 13bp YoY to 0.72%, with individual portfolio GNPL ratio
P/BV (x) 3.3 2.8 2.4 increasing 7bp YoY to 0.42%. While this is not a concern, credit cost declined
Div. Yld (%) 0.9 1.0 1.2 only 10% YoY to INR1.05b. Three builder loans amounting to INR1.2b slipped
into NPL in the quarter.
n Valuation and view: Despite being the second largest HFC, LICHF has managed
to grow at ~15% YoY, consistently. However, over the past 4-8 quarters, growth
has been driven largely by non-core loans. With the retail portfolio witnessing
moderate growth and sustained yield pressure, topline growth has been
sluggish. While we acknowledge that its LAP book is not as risky as peers
(INR1m-1.5m average ticket size at 30% LTV), we believe valuation will re-rate
only with growth returning in the core home loan portfolio. We cut our FY18/19
EPS estimates by 13%/9%. Maintain Neutral.
1 August 2017 14
RESULTS
FLASH 31 July 2017
Results Flash | Sector: Logistics
CONCOR
BSE SENSEX S&P CNX
32,515 10,077
We will revisit our estimates Beat led by higher margins and volumes
post earnings call/management n CONCOR’s 1QFY18 reported revenue stood at INR14.5b (est. of INR13.8b; +9%
interaction. YoY, -6% QoQ), led by higher-than-estimated volumes.
n EBITDA stood at INR3.3b (est. of INR2.6b; +25% YoY, -34% QoQ), led by
Conference Call Details improved margins in both EXIM and domestic segments. EBITDA margin
st
Date: 1 Aug 2017
expanded to 22.4% in 1QFY18 from 19.6% in 1QFY17, led by 0.9pp
Time: 11:00am IST
improvement in EXIM margin and 6.9pp in domestic margin.
Dial-in details:
n Reported PAT of INR2.4b (est. of INR1.7b; +36% YoY, -42% QoQ) was further
+91-22-3960 0983
boosted by higher other income of INR936m (+35% YoY).
n Volumes higher than est.: Overall volumes stood at 842.7k teu (est. of 782k
Financials & Valuations (INR b) teu; +15% YoY). EXIM volumes stood at 712k (est. of 663k; +13% YoY) and
Y/E Mar 2017 2018E 2019E domestic volumes at 129k (est. of 118k; +26% YoY).
Sales 56.1 60.6 67.5 n Realization trend: Overall realization was at INR17,287/teu (est. of
EBITDA 12.5 11.9 13.1 INR17,637/teu; -5% YoY). EXIM and domestic realization stood at INR15,875
NP 8.6 9.6 11.1
and INR25,033, respectively.
EPS (INR) 38.0 39.4 45.4
n Overall segmental EBIT stood at INR2,959/teu (est. of INR2,373; -3% YoY), led
EPS Gr.(%) -2.6 3.7 15.1
BV/Sh.(INR) 363.0 379.6 398.8 by EXIM EBIT at 3,112/teu (-3% YoY) and domestic EBIT at INR2,121/teu
RoE (%) 10.8 10.6 11.7 (+457% YoY).
RoCE (%) 10.5 10.4 11.4 Key questions for management
Payout (%) 57.7 57.7 57.7 n Volume guidance for 2QFY18/FY18, both for the industry and CONCOR
Valuations
n Reasons for sharp improvement in margins
P/E (x) 30.2 29.1 25.3
P/BV (x) 3.2 3.0 2.9 n Impact of increased competitive intensity in the focused market
EV/EBITDA (x) 22.1 23.2 21.3 n Capex guidance for 2QFY18/FY18
Div. Yield (%) 1.5 1.6 1.9 Valuation and view: We will revisit our estimates post earnings call. Based on our
current estimates, it trades at 23.2x/21.3x FY18/FY19E EBITDA. Maintain Neutral.
Container Corporation (INR Million)

Y/E March FY17 FY18E
1Q 2Q 3Q 4Q 1QE 1QAct Var (%) YoY (%) QoQ (%)
Net Sales 13,392 13,786 13,304 15,579 13,795 14,568 6% 9% -6%
YoY Change (%) -5.7 -8.2 -5.3 -2.3 3.0 8.8
EBITDA 2,619 2,288 2,612 4,950 2,550 3,267 28% 25% -34%
Margins (%) 19.6 16.6 19.6 31.8 18.5 22.4
YoY Change (%) -9.0 -27.6 -6.7 6.2 -2.6 24.8
Depreciation 841 873 927 877 880 953 8% 13% 9%
Interest 0 3 1 32 9 0 -98% -99%
Other Income 692 763 845 593 600 936 56% 35% 58%
PBT before EO expense 2,470 2,175 2,529 4,634 2,261 3,251 44% 32% -30%
Extra-Ord expense 0 0 0 865 0 0
PBT 2,470 2,175 2,529 3,768 2,261 3,251 44% 32% -14%
Tax 685 596 669 411 565 817 44% 19% 99%
Rate (%) 27.7 27.4 26.4 10.9 25.0 25.1
Adj PAT 1,785 1,578 1,860 4,223 1,696 2,434 44% 36% -42%
YoY Change (%) -13.7 -32.4 -9.7 37.9 -5.0 36.4
Margins (%) 13.3 11.4 14.0 27.1 12.3 16.7
E: MOSL Estimates
1 August 2017 15
31 July 2017
Shriram Transport Finance

BSE SENSEX S&P CNX
32,515 10,077
CMP: INR1,018 TP: INR1,330 (+31%) Buy
Bloomberg SHTF IN Strong quarter; Reaping the benefits on cost of funds
n Shriram Transport’s (SHTF) 1QFY18 PAT of INR4.5b was largely in line with our
M.Cap.(INRb)/(USDb) 231.0 / 3.6
52-Week Range (INR) 1325 / 778 estimate. Strong sequential AUM growth, continued decline in cost of funds
1, 6, 12 Rel. Per (%) -3/-11/-36 and reduction in GNPL ratio (QoQ) were the key positives of the quarter.
Avg Val, INRm 830 n Disbursements have started to pick up post the subdued performance in
Free float (%) 73.9
2HFY17. AUM growth of 3.6% QoQ is encouraging – we believe that if the
Financials & Valuations (INR b) economic scenario in 2HFY18 picks up, the company would be able to better its
Y/E March 2017 2018E 2019E
Net Inc. 55.2 64.7 72.2 12-15% AUM growth guidance.
PPP 43.7 52.3 58.0 n Calculated NIM on AUM expanded 60bp QoQ to 7.9%. CoF declined 34bp
PAT 12.6 17.9 22.9 sequentially to 9.44%. This is in line with our fundamental thesis that SHTF
Cons.PAT 12.6 18.1 23.2
will be the biggest beneficiary on CoF reduction among all NBFC peers due to
EPS (INR) 55.4 78.9 100.7
Cons. EPS (INR) 55.6 80.0 102.4 a larger share of high-cost legacy borrowings. Also, yields moderated just
BV/Sh (INR) 498 556 639.3 13bp YoY to 14.31%, allaying fears that yields will reduce drastically as the
Cons. BV (INR) 494 560 644.4 company moves toward financing more younger-vintage vehicles.
RoA on AUM (%) 2.0 2.7 3.1
n GNPL ratio decreased 13bp QoQ to 8.03%. However, credit costs of INR4b
RoE (%) 11.7 15.0 16.9
Payout (%) 20.9 18.6 17.4 were higher than the quarterly FY17 average of INR3.1b. If one were to
Valuations normalize the quantum of write-offs, the GNPL ratio would have been flat
P/Cons. EPS (x) 18.3 12.7 9.9 sequentially. However, the PCR of 71% gives us enough comfort that credit
P/Cons. BV (x) 2.1 1.8 1.6
costs will decline sharply over the next two years, despite migration to 90dpd.
Div. Yield (%) 1.0 1.2 1.5
n Valuation and view: SHTF’s return ratios are at cyclical lows, with decadal high
credit cost and NPLs. However, credit costs over the past two years have been
statutory, rather than economic, i.e., write-offs as % of AUM have been
steady. Additionally, we believe margin compression fears are overplayed with
the company yet to reap significant benefit on CoF. We increase our FY18-19
estimates by 2%/4% to factor in stronger revenue. The stock trades at
1.8x/1.6x FY18/19E BV. Buy with a TP of INR1,330 (2x June 2019E BVPS).
1 August 2017 16
31 July 2017
1QFY18 Results Update | Sector: Healthcare
Torrent Pharmaceuticals
BSE SENSEX S&P CNX
32,515 10,077
Bloomberg TRP IN Weak revenue; margins remain stable
Equity Shares (m) 169 n TRP reported sales of INR13.5b (-11% YoY; >10% below est.). The miss is
M.Cap.(INRb)/(USDb) 222.8 / 3.5
attributed to a decline in domestic revenue due to GST roll-out. Despite this,
52-Week Range (INR) 1768 / 1144
1, 6, 12 Rel. Per (%) 3/-16/-25
gross margin stood at 70.3% (up >500bps QoQ), a positive surprise, as India is
Avg. Val, INRm 389 the most profitable business. EBITDA margin came in at 22% (+60bp QoQ). R&D
Free float (%) 28.8 as % of sales stood at 7.5% in 1Q v/s 9.8% in 4QFY17 and 6.0% in 1QFY17.
n India biz impacted by GST; pricing pressure continues in US: India business
Financials & Valuations (INR b) declined ~9% YoY due to channel destocking ahead of GST rollout. Secondary
Y/E Mar 2017 2018E 2019E sales remained strong (at mid-teens). The company expects India business to
Net Sales 58.6 63.7 74.5 grow in double-digits, led by strategic initiatives undertaken since 2QFY16. US
EBITDA 13.8 14.8 18.3 business remained largely flat QoQ at INR2.7b due to continued pricing
PAT 9.3 9.0 11.4 pressure in base business, offset by recent launches, including gCelecoxib. We
EPS (INR) 55.2 53.4 67.3
expect this business to remain under pressure in FY18 due to further price
Gr. (%) -7.7 -3.2 26.0
erosion in base business, partially offset by 5-6 new launches in FY18E (~25
BV/Sh (INR) 257.1 291.2 334.2
pending ANDAs). TRP is also focusing on in-licensing of products in the US.
RoE (%) 23.8 19.5 21.5
RoCE (%) 18.6 15.7 17.0 n Earnings call takeaways: 1) Plans to file 15-16 ANDAs in FY18. 2) Pricing pressure
P/E (x) 23.9 24.7 19.6 in US in 1QFY18. 3) Tax rate guidance of 21-22% in FY18. 4) Dahej- formulations
P/BV (x) 5.1 4.5 3.9 facility inspected in Jun-17, and received five 483 observations. 5) Renvela
launch deferred for more than a year. 6) Tax rate to stay at ~20% in FY18. 7)
Estimate change According to AIOCD, secondary sales of Novartis brand acquired were ~INR31cr
TP change (annualized at June-end). 8) Local currency growth in Germany was ~12% YoY
Rating change
(~8% YoY in reported terms). 9) Capex guidance of INR4b in FY18 and FY19.
n Upside potential capped; downgrading to Neutral: Although TRP remains one
of the better plays on India’s growth story (because of chronic heavy portfolio
and one of the best margins), challenges in the US business will keep growth
and margins under check in the near term. We downgrade the stock to Neutral
due to limited upside at current valuations. Our TP is INR1,350@20x FY19E PER
(v/s INR1,450 @ 20x FY19E EPS). We cut FY18E/19E EPS by ~6% as we build in
the impact of higher pricing pressure in the US and lower EBITDA margin.
1 August 2017 17
31 July 2017
1QFY18 Results Update | Sector: Fertilizers
Coromandel International
BSE SENSEX S&P CNX
32,515 10,077
CMP: INR449 TP: INR523 (+16%) Buy
Bloomberg CRIN IN Strong performance; better monsoon to aid growth
M.Cap.(INRb)/(USDb) 75.4/ 1.1
n Exhibits recovery in PAT: CRIN reported overall revenue of INR22.7b (est. of
52-Week Range (INR) 274/146 INR22.2b) in 1QFY18, as against INR20.6b in 1QFY17, marking growth of 10.6%.
1, 6, 12 Rel. Per (%) 5/34/12 EBITDA margin expanded significantly by 320bp YoY in 1QFY18 to 7.5% (est. of
Avg. Val, (INR m) 68 4.6%) on account of gross margin expansion of 240bp YoY. EBITDA increased
Free float (%) 37.9
94% YoY to INR1,715m (est. of INR1,025m). Consequently adj. PAT grew from
Financials & Valuations (INR b) INR75m in 1QFY17 to INR754m (est. of INR364m) in 1QFY18 on account of
Y/E Mar 2017 2018E 2019E
significant reduction in finance cost (INR441m v/s INR651m in 1QFY17).
Sales 100.3 117.2 131.4
EBITDA 9.8 12.1 13.7
n Better monsoon aids crop acreages: The country is witnessing better monsoon
NP 4.8 7.0 8.5 in 2017 (southwest monsoon 5% above normal level), leading to an increase of
EPS (INR) 16.6 24.1 29.0 3% in sowing of Kharif crops. Cotton sowing increased impressively by 29%,
EPS Gr. (%) 36.0 45.1 20.4 followed by pulses (+6.9%) and rice (2.4%). CRIN is set to benefit from better
BV/Sh. (INR) 99.1 114.8 133.7 monsoon and increased sowing.
RoE (%) 17.5 22.5 23.4
n DBT rollout to prove beneficial: Rollout of direct benefit transfer (DBT) for
RoCE (%) 12.3 15.6 17.1
P/E (x) 27.0 18.6 15.5 fertilizers has been pushed to 2018 as distribution of POS machines has not
P/BV (x) 4.5 3.9 3.4 been completed yet due to low availability. However, once implemented, it will
significantly ease the subsidy receivables situation for CRIN. DBT rollout is
Estimate change
expected to require end-to-end supply chain management and last mile reach,
TP change
both of which will benefit CRIN on account of the strong brand pull.
Rating change
n Valuation and view: We believe increased sowing on account of better
monsoon, moderating raw material prices, and regular disbursement of
subsidy will be the major triggers for margin expansion. We thus maintain our
revenue estimates for FY18 and FY19, and raise our EBITDA/PAT by 9.2%/9.9%
for FY18E and by 10.2%/11.4% for FY19E. We expect 14% revenue CAGR (FY17-
19) and 32% PAT CAGR. Maintain Buy with a TP of INR523, 18x FY19E EPS.
1 August 2017 18
31 July 2017
1QFY18 Results Update | Sector: Capital Goods
GE T&D India
BSE SENSEX S&P CNX
32,515 10,077
CMP: INR395 TP: INR395(0%) Neutral
Bloomberg GETD IN Operating performance above expectations; Maintain Neutral
Equity Shares (m) 256
n Performance aided by strong execution: Sales rose 41% YoY to INR12.1b in
M.Cap.(INRb)/(USDb) 91.4 / 1.4
52-Week Range (INR) 425 / 277 1QFY18, meaningfully above our estimate of INR9.5b, led by strong execution
1, 6, 12 Rel. Per (%) 10/11/-2 of projects in hand. Adj. EBITDA stood at INR1.1b v/s INR21m (one-time tax
Avg Val, INRm 36
provision of INR1.8b) in 1QFY17, with the margin expanding 850bp YoY to
Free float (%) 25.0
8.7%. Adj. PAT stood at INR616m v/s INR360m in 1QFY17.
Financials & Valuations (INR b) n EBIDTA margin expands led by better execution, cost rationalization: EBIDTA
Y/E Mar 2017 2018E 2019E
Net Sales
stood at INR1.1b as against profit of INR21m, with the margin expanding YoY to
40.5 47.8 51.1
EBITDA 2.2 4.1 5.1 8.7% from 0.2%. Operating margin expansion was driven by better operating
PAT 1.5 2.4 2.9 leverage and cost control (employee cost rationalization). Management guided
EPS (INR) 5.7 9.3 11.3 for 7-8% EBIDTA margin on a sustainable basis due to intense competition in
Gr. (%) 325.3 62.1 21.5
BV/Sh (INR) 40.3 46.1 53.1
the sector.
RoE (%) 12.4 21.5 22.7 n Order inflow and book grow strongly: Order intake rose 98% YoY to INR15.8b
RoCE (%) 15.7 26.0 29.3 in 1QFY18, driven by strong order finalization in the substation segment (46%
P/E (x) 69.3 42.7 35.2 of order inflow). Order backlog stands at INR84.2b, providing revenue visibility
P/BV (x) 9.8 8.6 7.5
for the next two years. Of the total order book, 40% are from PGCIL, 40% from
Estimate change
private and the rest from the state. Key orders bagged in 1Q were (1)
TP change
765/230kv GIS substation order from Doosan (INR4.0b), (2) 765kv AIS
Rating change
substation order at Warangal (INR3.3b), (3) Solar project from Odisha from
PAN India Infra (INR1.6b) and (4) 765kv 80MVAR reactor order from PGCIL
(INR662m).
n Maintaining Neutral; raising estimates: We raise EPS for FY18E/19E by 4/6% to
INR9/11 to factor in improved execution of the projects in hand. Maintain
Neutral with a revised TP of INR395, valuing the stock at 35x FY19E EPS of
INR11.3.

FY17 FY18 FY17 FY18 MOSL Var.
Y/E March 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1QE Vs Est
Sales 8,546 8,340 11,623 11,963 12,093 9,700 12,914 13,124 40,521 47,831 9,500 27
Change (%) 11.6 -4.4 62.8 26.9 41.5 16.3 11.1 9.7 22.7 18.0 11.2
EBITDA 21 339 722 1,097 1,055 900 1,214 1,569 2,230 4,113 500 111
Change (%) -70.3 -50.1 -235.7 81.7 4,875.9 165.2 68.3 43.0 -9.0 -9.0 2,258
As of % Sales 0.2 4.1 6.2 9.2 8.7 9.3 9.4 12.0 5.5 8.6 5.3
Depreciation 217 220 221 224 224 210 210 197 873 873 210
Interest 226 239 343 344 278 220 220 207 589 589 171
Other Income 326 435 522 177 421 310 200 326 427 427 339
PBT -2,425 315 679 705 974 780 984 1,491 1,195 3,078 458 113
Tax -455 109 236 244 358 234 295 338 508 508 137
Reported PAT -1,970 206 443 461 616 546 689 1,153 687 2,570 321 92
Change (%) -2,041.0 -43.0 -215.4 70.9 -131.3 165.3 55.5 150.0 0.0 0.0 -116.3
Adj PAT 360 206 443 461 616 546 689 1,153 687 2,570 321 92
Change (%) 254.6 -43.0 -215.4 70.9 71.1 165.3 55.5 150.0 2.0 2.0 -10.9
E: MOSL Estimates
1 August 2017 19
31 July 2017
2QCY17 Results Update | Sector: Technology
Hexaware Technologies
BSE SENSEX S&P CNX
32,515 10,077
CMP: INR262 TP: INR250(-5%) Neutral
Bloomberg HEXW IN Beat-and-raise as revenue momentum continues
Equity Shares (m) 302
n Revenue momentum intact: HEXW continued its strong revenue momentum in
M.Cap.(INRb)/(USDb) 79.2 / 1.2
52-Week Range (INR) 268 / 178 2QCY17 (USD152.6m; 2.3pp beat). In constant currency terms, revenue grew
1, 6, 12 Rel. Per (%) 3/17/3 4.9% QoQ and 18.2% YoY to USD151.8m. EBITDA margin, including ESOP
Avg Val, INRm 242 charges, shrunk 70bp QoQ to 16.2%, marginally below our estimate, due to
Free float (%) 28.8 elevated ESOP charges (INR121m v/s estimate of INR54m). PAT grew 7.5% QoQ
Financials & Valuations (INR b) to INR1.22b (7pp beat) on the back of better-than-expected revenue, forex
Y/E Dec 2016 2017E 2018E gains, and lower tax rates.
Net Sales 35.3 39.5 44.2 n Broad-based traction drives guidance raise: Broad-based growth across
EBITDA 5.7 6.4 6.9 geographies and verticals was a highlight for the quarter, with IMS and BPS as
PAT 4.2 4.7 5.0 the stars among services. After the second quarter of high-teens growth, HEXW
EPS (INR) 13.7 15.7 16.5
upgraded its revenue growth guidance for CY17 to 14-15% from 10-12%. Even
Gr. (%) 5.8 14.8 4.8
flat revenue sequentially for the remainder of the year will put HEXW at the
BV/Sh (INR) 56.3 65.0 77.2
26.5 25.7 23.1
higher end of the band. It expects to sustain EBITDA margins at last year’s
RoE (%)
RoCE (%) 24.2 24.0 22.5
levels (16.3%).
P/E (x) 19.1 16.7 15.9 n Alleviates concerns around top clients: Sluggish outlook for the second half is
P/BV (x) 4.7 4.0 3.4 a function of weakness in two of its top five clients, ramp-down in one of which
was embedded in the 10-12% guidance at the beginning of the year. The
Estimate change situation in new account is expected to impact HEXW’s revenue by 2.5-3% in
TP change CY18 – it will still exit CY17 with close to double-digit growth. Margins in these
Rating change accounts were close to company average, and should thus remain unaffected.
Also, HEXW noted it lost only a share of the larger piece and continues to grow
in other areas of the relationship.
n Valuation and view: We have upgraded our revenue estimates by 4-4.5% and
earnings estimates by 2.5-3.5% for CY17 and CY18. For CY16-18, we expect
revenue CAGR of 12.5% and earnings CAGR of 10%. HEXW trades at 16.7x
CY17E and 16x CY18E earnings. Our target price of INR250 discounts forward
earnings by 14x, factoring the risks in top clients playing out in some measure.
Maintain Neutral.
Quarterly Performance (Consolidated)
Y/E Dec CY16 CY17 CY16 CY17E Est. Var. (%
1Q 2Q 3Q 4Q 1Q 2Q 3QE 4QE 2QCY17 / bp)
Revenue (USD m) 121.7 129.7 135.2 138.9 144.7 152.6 153.7 153.6 525 605 150.2 1.6
QoQ (%) -1.9 6.6 4.2 2.7 4.2 5.5 0.7 0.0 8.2 15.2 3.8 167bp
Revenue (INR m) 8,202 8,697 9,041 9,409 9,605 9,836 9,991 10,064 35,349 39,496 9,679 1.6
YoY (%) 15.0 12.6 10.5 14.8 17.1 13.1 10.5 7.0 13.2 11.7 11.3 179bp
GPM (%) 33.6 34.6 35.4 34.6 34.1 33.7 33.9 32.3 34.6 33.5 33.1 56bp
SGA (%) 19.0 19.0 18.0 17.3 17.2 17.4 17.0 17.0 18.3 17.1 17.0 42bp
EBITDA 1,194 1,353 1,576 1,624 1,623 1,598 1,686 1,539 5,747 6,445 1,561 3683bp
EBITDA Margin (%) 14.6 15.6 17.4 17.3 16.9 16.2 16.9 15.3 16.3 16.3 16.1 14bp
EBIT Ma rgi n (%) 12.9 14.0 15.9 15.8 15.3 14.6 15.2 13.7 14.7 14.7 14.7 -5bp
Othe r i ncome 55 132 67 140 28 146 146 74 394 394 113 29.2
ETR (%) 24.2 25.8 25.8 25.1 23.8 22.9 23.5 23.5 25.3 23.4 25.5
PAT 842 999 1,114 1,216 1,139 1,224 1,277 1,108 4,171 4,748 1,142 7.2
QoQ (%) -15.3 18.6 11.5 9.2 -6.3 7.4 4.4 -13.2 0.3 715bp
YoY (%) 1.0 1.0 -0.1 22.3 35.3 22.5 14.7 -8.9 6.1 13.8 14.3 821bp
EPS (INR) 2.8 3.3 3.7 4.0 3.8 4.1 4.2 3.7 13.7 15.7 3.8
Headcount 11,599 11,875 11,859 12,115 12,734 13,098 13,255 13,492 12,115 13,492 13,434 -2.5
Uti l i za ti on (%) 69.6 70.0 74.1 78.6 78.9 80.8 80.0 77.0 73.9 80.3 77.0 380bp
Attri ti on (%) 16.0 16.6 16.5 16.1 14.9
Offs hore re v. (%) 36.9 38.6 36.8 38.1 35.5 35.3 35.0 33.8 37.6 34.9 32.9 236bp
1 August 2017 20
31 July 2017
Equitas Holdings
BSE SENSEX S&P CNX
32,515 10,077
Bloomberg EQUITAS IN Steady shift to secured products; at PAR delinquencies in MF up marginally
Equity Shares (m) 337.8 n Equitas reported PAT growth of 126% QoQ (-75% YoY) to INR156m (15% miss).
M.Cap.(INR b)/(USD b) 56.4/0.9 PPoP exceeded estimate by 31%, helped by lumpy PSLC fees and largely in-line
NII. Other income of INR820m (1.6x beat) included INR600m of PSLC fees.
1, 6, 12 Rel. Per (%) 6/-16/-31
However, provisions of INR441m (above est. of INR250m; includes INR240m of
Avg Val, INRm 284
additional provision for MF portfolio) led to PAT miss of 9%.
Free float (%) 100.0
n AUM/loan book grew -2%/7% YoY and 7%/5% QoQ. The share of microfinance
AUM fell to 42% of total v/s 46% in 4QFY17, as microfinance disbursements
declined 21%/57% QoQ/YoY. Overall disbursements declined to INR10.6b v/s
Y/E March 2018E 2019E 2020E
INR13.9b a year ago (largely stable QoQ).
NII 9.3 11.5 14.4
n In line with its strategy, Equitas has lowered unsecured portion of AUMs to
OP 2.1 4.1 6.5
44% v/s 47% in 4Q, with robust growth in secured lending products like UCV
NP 0.6 2.1 3.4
(+21% YoY) and M-LAP/LAP (+29% YoY), and new product additions (business,
EPS (INR) 1.7 6.1 10.1
gold, agri loans, etc.).
EPS Gr. (%) -65.7 252.9 65.2
n Non-MF GNPA % increased to 4.9% v/s 4.5% a quarter ago, while MF portfolio
BV/Sh. (INR) 68 73 82
NPA increased from 2.5% to 5%. The RBI’s 90-day relaxation window closure
RoE (%) 2.6 8.7 13.0
led to higher NPA in non-MF portfolio. Total pool of at PAR delinquencies in MF
RoA (%) 0.6 1.7 2.0
portfolio increased to INR2.08b v/s INR1.9b a quarter ago.
P/E(X) 96.4 27.3 16.5
n GNPA increased 46% in absolute terms, and calculated PCR rose 270bp QoQ to
P/BV (X) 2.5 2.3 2.0
51.7%. GNPA/NNPA stood at 4.91% (4.99% in microfinance portfolio and 4.85%
in non-MF)/2.95%. Coverage ratio on MF portfolio is healthy at 58%.
n Other highlights: (1) Deposits grew 20% QoQ, helped by strong CASA growth of
80% QoQ; CASA ratio stood at 26% (+900bp QoQ). (2) MF collection efficiency
declined marginally to 94.6% v/s 95.4% in 4Q. (3) Management mentioned that
PAR delinquencies in microfinance have largely stabilized, and collection
efficiency for MF loans disbursed in CY17 is ~99.8%.
n Valuation view: Equitas targets to take MFI share in overall loans to ~30% by
FY18. This would be partially offset by high growth in secured products like
micro LAP and VF, and newly launched products like housing, business, gold
and agri loans. We expect near-term recalibration of the growth strategy to
yield positive results over medium-to-long term. We cut our FY18/FY19 PAT
estimates sharply (64%/18%) to reflect higher opex toward branch expansion
and employee additions, and higher provision requirement for MF book.
Reiterate Buy with TP of INR201.
1 August 2017 21
RESULTS
FLASH 31 July 2017
Results Flash | Sector: Media
Music Broadcast Ltd

BSE SENSEX S&P CNX
32,515 10,077
CMP: INR359 TP: INR469 Buy
We will revisit our estimates Results above estimates
post earnings call/management
interaction. n Revenues stood at INR703m (+12% YoY, +6% QoQ), exceeding our estimate by
12%, led by hikes in ad rates at legacy stations and higher utilization levels (70-
Conference Call Details 80% at 28 legacy stations; 25-35% at newer stations).
st
Date: 01 Aug 2017 n EBITDA surged 16% YoY (+34% QoQ) to INR222m (13% above estimates).
Time: 11:30am IST n EBITDA margin expanded 100bp YoY (+660bp QoQ) to 31.5% (in-line), led by
Dial-in details: operating leverage from employee cost and other expenditure.
+91-22-3960 0711 n Fall in finance cost by 6% YoY (-35% QoQ) to INR39m, coupled with higher
margin, provided impetus to PAT (INR108m; +42% YoY, +140% QoQ).
Financials & Valuations (INR m) Valuation and view: We will revisit our estimates post the earnings call. At CMP of
Y/E Mar 2017 2018E 2019E INR359, the stock is trading at EV/EBITDA of 13x on FY19E. We have a Buy rating on
Net Sales 2,714 3,172 3,611
the stock with a TP of INR469.
EBITDA 913 1037 1296
Adj PAT 367 548 794
Adj EPS (INR) 6.4 9.6 13.9
Gr. (%) 0.3 49.5 44.9
BV/Sh (INR) 96.1 105.7 119.6
RoE (%) 11.2 9.5 12.4
RoCE (%) 8.8 9.6 12.2
P/E (x) 55.9 37.4 25.8
P/BV (x) 3.7 3.4 3.0
EV/EBITDA (x) 21.2 17.7 13.4
Quarterly Earning Model (INR m)

Y/E March FY17 FY18 FY17 FY18E
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QFY18E Var. (%)
Net Sales 628 810 728 666 703 903 817 749 2,714 3,172 626 12.2
YoY Change (%) 38.0 45.9 12.3 12.7 11.9 11.5 12.2 12.6 20.7 16.9 -0.3
Total Expenditure 437 531 462 500 481 600 529 524 1,802 2,135 429 12.1
EBITDA 192 279 266 166 222 303 287 225 913 1,037 197 12.5
Margins (%) 30.5 34.4 36.6 24.9 31.5 33.5 35.2 30.1 33.6 32.7 31.5 8 bps
Depreciation 45 49 50 56 64 72 65 38 197 240 50 27.7
Interest 41 81 50 59 39 39 39 34 190 150 36 6.2
Other Income 11 13 9 17 47 47 47 51 44 191 56 -16.1
PBT before EO expense 116 162 175 68 166 239 230 203 570 838 166 -0.2
Extra-Ord expense 0 0 0 0 0 0 0 0 0 0 0 0.0
PBT 116 162 175 68 166 239 230 203 570 838 166 -0.2
Tax 40 0 54 23 57 83 80 70 203 290 58 -0.2
Rate (%) 34.5 0.0 30.9 33.3 34.6 34.6 34.6 34.6 35.7 34.6 34.6 0.1
Reported PAT 76 162 121 45 108 156 151 133 367 548 109 -0.3
Adj PAT 76 162 121 45 108 156 151 133 367 548 109 -0.3
YoY Change (%) -27.5 50.1 -43.9 -75.7 42.3 -3.6 24.7 195.7 32.7 49.5 42.6
Margins (%) 12.1 20.0 16.6 6.8 15.4 17.3 18.4 17.8 13.5 17.3 17.4 -193 bps
Source: MOSL, Company
1 August 2017 22
31 July 2017
Sector Update
Automobiles
July-17 Sales Estimates Industry witnesses inventory build-up to meet festive demand
PV and 2W sales to see healthy growth in dispatches
2W and PV wholesales volume is expected to be healthy, led by inventory build-up to meet

festive demand and gradually improving retails post GST implementation. Growth in the
CV segment will be largely led by LCVs.
Our interaction with mass market 2W channel partners points toward a gradual recovery
in retails from the second half of July. Factors such as good monsoon and increase in MSPs
have lifted sentiment in rural/semi-urban areas. Pre-festive demand is evident in states
like Maharashtra and Gujarat.
Key highlights:
n MSIL’s domestic dispatches growth is expected to come in at 11% YoY. Demand for
Baleno, Brezza and New Dzire continues to remain robust as these models enjoy a
healthy waiting period of 3-4 months. Within the domestic portfolio, CIAZ sales are
expected to be weak due to GST impact on hybrid cars (forms ~60% of CIAZ sales).
n Tata Motors’ PV segment is expected to decline 5% YoY, while the CV segment is likely
to continue its downtrend with a decline of 3% YoY, led by a 12% fall in HCVs.
n MM’s volumes are expected to increase by 7% YoY, as tractor volumes are likely to
increase by 25% YoY and UV volumes by 2.3% YoY. However, 3W sales are expected to
decline 27% YoY.
n In the 2W segment (barring BJAUT), HMCL and TVSL wholesales are expected to
increase at a healthy 20% and 15%, respectively, led by improving retails in key states
and inventory build-up to meet festive demand. BJAUT is likely to record a decline of
2.3% YoY due to weak 3W and exports sales.
n We expect RE volumes to grow at 19.9% YoY to 64k units.
n CV manufacturers are expected to see a sharp recovery in wholesales, led by strong
growth in LCV sales. We expect AL to outperform other CV manufacturers, with 9.6%
YoY growth (LCVs +30% YoY, HCVs +3.9% YoY), while TTMT and VECV’s CV sales are
expected to decline by 3.2% and 2.7%, respectively.
n We prefer 4Ws over 2Ws and CVs due to stronger volume growth and a stable
competitive environment. While we expect 2W volumes to benefit from rural recovery
in the near term, competitive intensity remains high in this segment witnessing
changing customer preferences. For CVs, we expect a gradual volume recovery from
2HFY18.
n Our top picks are Tata Motors, Maruti Suzuki and Amara Raja. We also consider MM
as the best way to participate in rural market recovery.
1 August 2017 23
31 July 2017
Update
Metals Weekly
Steel and its input prices moving up across the world
n Indian steel: Long product (TMT Mumbai) prices were marginally higher WoW. Sponge iron prices were up
~4% WoW while domestic scrap prices were up ~3% WoW. Domestic iron ore were unchanged. Pellet prices
were marginally higher. Domestic HRC prices were up ~1% WoW, while import HRC price offers were
unchanged.
n Raw Materials: Iron ore prices (China cfr) were up ~2% WoW. Chinese iron ore port inventories were
unchanged. Thermal coal prices were down ~2% WoW. Coking coal prices were up ~3% WoW on strong buying
activity in China. China’s pellet import prices were up ~1% WoW, as premium over iron ore remains strong.
n Europe: HRC prices were up ~2% WoW, third consecutive week of increase. EU steel spreads improved on
higher steel prices, offset partly by increase in iron ore and coking coal. CIS export HRC prices were up ~8%
WoW. Rotterdam scrap prices were also up ~8% WoW.
n China: local HRC prices were up ~3% WoW, while rebar prices were unchanged. Steel inventories were
marginally higher. Export HRC/rebar prices were up ~1%/flat WoW, respectively.
n Base metals: Aluminum (cash LME) was unchanged. Zinc (cash LME) was unchanged while lead was up ~3%
WoW. Copper was up ~5% WoW. Crude oil (Brent) prices were up ~9% WoW.
1 August 2017 24
June 2017 Results Preview | Sector: Metals
JSW Steel
Bloomberg JSTL IN
n Consolidated EBITDA is estimated to decline 26% YoY/24% QoQ
M. Cap. (INR b)/(USD b) 472 / 7
to INR24b on lower steel prices and elevated coking coal cost.
1,6,12 Rel Perf. (%) 2 / 3 / 35
n Standalone steel sales are estimated to increase 5% YoY to 3.5mt,
impacted by GST-led de-stocking.
Financial Snapshot (INR Billion) n Steel realization is estimated to decline 6% QoQ due to lower
Y/E March 2017 2018E 2019E 2020E domestic and export prices and lower mix of exports.
Sales 556.0 600.5 605.5 624.8 n Standalone EBITDA/t is estimated at INR6,413, down from
EBITDA 122.6 135.1 146.5 147.4 INR9,276 in 1QFY17 and 7,586 in 4QFY17.
Adj. PAT 35.8 45.8 54.6 50.6 n Adj. PAT is estimated to decline 59% YoY to INR4.5b.
Adj. EPS (INR) 14.8 19.0 22.6 20.9
EPS Gr(%) 28.0 19.1 -7.3
BV/Sh. (INR) 93.7 108.9 128.9 147.3
RoE (%) 17.3 18.7 19.0 15.1
RoCE (%) 7.9 8.6 8.9 8.3
Payout (%) 18.4 7.9 6.5 13.0
Valuation
Key issues to watch for:
P/E (x) 14.3 11.2 9.4 10.1
P/BV 2.3 1.9 1.6 1.4
Ø Steel price hikes and impact of coking coal.
EV/EBITDA (x) 8.4 7.5 6.8 6.7
Ø Domestic steel demand growth.
Div. Yield (%) 1.1 0.6 0.6 1.0
Quarterly Performance (Consolidated) (INR Million)

Y/E March FY17 FY18E FY17 FY18E
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Net Sales 117,080 132,278 140,126 166,562 137,271 142,241 160,491 160,491 556,046 600,495
Change (YoY %) 1.1 21.3 61.1 55.7 17.2 7.5 14.5 -3.6 32.8 8.0
EBITDA 32,694 29,586 28,669 31,649 24,145 30,300 40,535 40,105 122,598 135,086
Change (YoY %) 100.9 71.1 221.5 73.5 -26.1 2.4 41.4 26.7 101.9 10.2
EBITDA (INR per ton) 9,789 7,705 7,876 7,992 6,899 8,080 9,538 9,436 8,295 8,577
EBITDA (USD per ton) 146 115 117 119 107 123 145 142 124 131
Interest 9,358 9,646 9,201 9,476 10,046 9,954 9,862 9,771 37,681 39,633
Depreciation 8,315 8,915 9,146 8,779 9,400 9,484 9,568 9,739 35,154 38,191
Other Income 334 296 333 558 841 846 852 857 1,521 3,396
PBT (before EO Item) 15,356 11,320 10,655 13,953 5,540 11,709 21,957 21,452 51,284 60,658
EO Items 0 0 0 0 0 0 0 0 0 0
PBT (after EO Item) 15,356 11,320 10,655 13,953 5,540 11,709 21,957 21,452 51,284 60,658
Total Tax 4,507 4,734 3,511 3,992 1,690 3,418 6,287 6,146 16,743 17,541
% Tax 29.4 41.8 32.9 28.6 30.5 29.2 28.6 28.6 32.6 28.9
Reported PAT 10,848 6,587 7,145 9,961 3,850 8,291 15,670 15,306 34,541 43,117
MI (Profit)/Loss 112 -117 13 57 -117 -117 -117 -117 64 -469
Share of P/(L) of Ass. 130 795 143 125 795 795 795 795 1,193 3,181
Pref. Dividend 0 0 0 0 0 0 0 0 0 0
Adjusted PAT 11,090 7,265 7,300 10,143 4,528 8,969 16,348 15,984 35,798 45,829
Change (YoY %) -1,076.8 557.5 -529.2 515.1 -59.2 23.5 123.9 57.6 -42,485.0 28.0
E: MOSL Estimates
1 August 2017 25
June 2017 Results Preview | Consumer
Marico
Bloomberg MRCO IN
CMP: INR323 TP: INR360 (+12%) Neutral
n We expect sales to remain flat YoY at INR17.5b, with 3% decline in
M. Cap. (INR b)/(USD b) 416 / 6
domestic volumes. In our opinion, Parachute, VAHO and Saffola
1,6,12 Rel Perf. (%) 0/8/7
should post mid-single-digit decline in volumes, mostly led by
destocking by trade in the month of June.
Financial Snapshot (INR b) n We observe that copra prices are up 59% YoY (data available till
Y/E March 2017 2018E 2019E 2020E May-2017), while kardi oil prices are down 2% YoY. We are
Sales 59.2 67.5 78.1 90.4 modeling 400bp YoY gross margin contraction and 300bp EBITDA
EBITDA 11.4 12.4 14.9 17.2 margin contraction for 1QFY18 due to the unfavorable base. Price
Adj. PAT 8.1 9.0 10.9 12.7 increases will protect margins from 2QFY18.
Adj. EPS (INR) 6.3 6.9 8.4 9.8
n PAT is projected to decline by 13.4% YoY to INR2.3b.
EPS Gr. (%) 12.1 10.5 21.1 16.5
n We like MRCO’s franchise, portfolio strength, management
BV/Sh.(INR) 18.0 21.1 23.0 26.2
quality and multiple growth drivers. Valuations remain fair. The
RoE (%) 36.7 35.5 38.1 39.8
stock trades at 38.3x FY19E EPS of INR8.4; maintain Neutral.
RoCE (%) 31.5 30.3 32.7 34.2
Payout (%) 47.7 46.1 65.4 56.1
Valuations Key issues to watch for:
P/E (x) 51.3 46.4 38.3 32.9 Ø Comments on volume growth trends across key categories.
P/BV (x) 17.9 15.3 14.0 12.3 Ø Outlook for raw materials.
EV/EBITDA (x) 36.2 32.7 27.3 23.5 Ø Margin expansion and guidance for the international business.
Div. Yield (%) 0.9 1.0 1.7 1.7

1Q 2Q 3Q 4Q 1QE 2QE 3QE 4QE
Domestic volume growth (%) 8.0 3.4 -4.0 10.0 -3.0 14.0 16.0 8.0 3.6 9.0
Net Sales 17,499 14,390 14,140 13,152 17,499 17,412 17,392 15,217 59,180 67,520
YoY Change (%) 0.1 -0.9 -7.5 2.2 0.0 21.0 23.0 15.7 -3.3 14.1
COGS 8,419 6,847 6,859 6,365 9,119 8,285 8,349 7,160 28,491 32,914
Gross Profit 9,079 7,543 7,281 6,787 8,379 9,127 9,043 8,057 30,690 34,607
Gross margin (%) 51.9 52.4 51.5 51.6 47.9 52.4 52.0 52.9 51.9 51.3
Other Expenditure 5,384 5,050 4,585 4,262 5,209 6,198 5,726 5,039 19,276 22,172
% to Sales 30.8 35.1 32.4 32.4 29.8 35.6 32.9 33.1 32.6 32.8
EBITDA 3,695 2,493 2,697 2,525 3,170 2,929 3,317 3,019 11,414 12,435
Margins (%) 21.1 17.3 19.1 19.2 18.1 16.8 19.1 19.8 19.3 18.4
YoY Change (%) 16.8 9.8 -6.4 20.1 -14.2 17.5 23.0 19.6 8.1 8.9
Depreciation 208 209 213 273 260 262 266 337 903 1,124
Interest 54 21 44 47 70 27 58 66 166 220
Other Income 319 285 260 293 383 342 312 336 1,152 1,373
PBT 3,753 2,548 2,700 2,497 3,224 2,982 3,305 2,952 11,497 12,464
Tax 1,072 740 781 784 903 835 925 827 3,377 3,490
Rate (%) 28.6 29.1 28.9 31.4 28.0 28.0 28.0 28.0 29.4 28.0
Minority Interest 2 2 2 4 2 2 2 4 10 10
Adjusted PAT 2,679 1,806 1,916 1,709 2,319 2,146 2,378 2,121 8,110 8,964
YoY Change (%) 17.2 18.1 -6.8 25.5 -13.4 18.8 24.1 24.1 14.4 10.5
E: MOSL Estimates
1 August 2017 26
June 2017 Results Preview | Utilities
Power Grid Corporation

Bloomberg PWGR IN CMP: INR210 TP: INR242 (+15%) Buy
n We estimate regulated equity base to increase to 21% YoY to
M. Cap. (INR b)/(USD b) 1100 / 17
INR479b. We expect capitalization of INR70b in 1QFY18, driven by
Champa-Kuruskshetra and Wardha-Nizamabad.
1,6,12 Rel Perf. (%) 2 / -4 / 13
n We expect PAT to grow 21% YoY to INR21.8b on regulated equity
Financial Snapshot (INR Million) growth.
Y/E March 2017 2018E 2019E 2020E
Sales 257.0 322.1 368.1 397.3
EBITDA 226.6 285.4 327.1 352.3
NP 74.5 92.2 107.5 112.4
EPS (INR) 14.2 17.6 20.6 21.5
EPS Gr. (%) 23.9 23.8 16.6 4.6
BV/Sh. (INR ) 93.7 107.6 123.7 140.2
RoE (%) 16.2 17.5 17.8 16.3
RoCE (%) 7.3 8.3 8.9 8.7
Payout (%) 20.9 21.4 21.7 23.7
VALUATION
Key issues to watch for
P/E (x) 14.7 11.9 10.2 9.8
Ø Capitalization/capex guidance for FY18.
P/BV (x) 2.2 2.0 1.7 1.5
Ø Details on competitively bid projects.
EV/EBITDA (x) 10.0 8.2 7.4 6.9
Ø Development on green energy projects, state JVs, etc.
Div. Yield (%) 1.2 1.5 1.8 2.0
Quarterly Performance INR million

Sales 60,691 62,296 65,010 67,120 72,558 75,006 77,500 81,276 257,165 306,340
Change (%) 29.4 28.5 22.1 16.9 19.6 20.4 19.2 21.1 24.4 19.1
EBITDA 53,675 55,788 58,220 57,015 64,600 67,633 69,914 70,108 226,715 272,255
Change (%) 29.8 30.3 22.8 12.9 20.4 21.2 20.1 23.0 24.0 20.1
As of % Sales 88.4 89.6 89.6 84.9 89.0 90.2 90.2 86.3 88.2 88.9
Depreciation 17,573 18,769 19,653 20,633 20,808 22,224 23,271 24,432 76,628 90,734
Interest 15,178 15,876 16,426 15,558 17,711 18,526 19,168 18,155 63,038 73,560
Other Income 1,902 2,507 2,866 3,424 1,542 2,032 2,323 1,114 8,649 7,011
PBT 22,827 23,650 25,006 24,247 27,623 28,915 29,798 28,635 95,698 114,971
Tax 4,819 4,888 5,706 5,083 5,801 6,072 6,258 6,013 20,496 24,144
Effective Tax Rate (%) 21.1 20.7 22.8 21.0 21.0 21.0 21.0 21.0 21.4 21.0
Reported PAT 18,008 18,762 19,300 19,164 21,822 22,843 23,540 22,622 75,202 90,827
Adjusted PAT 18,008 18,762 19,300 20,131 21,822 22,843 23,540 22,622 76,169 90,827
Change (%) 32.8 33.2 20.2 28.3 21.2 21.8 22.0 12.4 28.0 19.2
E: MOSL Estimates
1 August 2017 27
June 2017 Results Preview | Sector: Financials
Shriram City Union Finance

Bloomberg SCUF IN
CMP: INR2,520 TP: INR2,900 (+15%) Buy
n 1QFY18 was a good quarter in terms of growth. SCUF’s AUM is
M. Cap. (INR b)/(USD b) 148 / 2.2
52-Week Range (INR)
expected to grow 4.4% QoQ and 18% YoY to INR242b, driven by
2650 / 1648
1,6,12 Rel Perf. (%)
16% YoY growth in disbursements.
9/18/31
n Margins are expected to remain largely stable. Hence, NII growth
Financial Snapshot (INR b) is expected to be 15% YoY.
Y/E March 2017 2018E 2019E 2020E n Slower growth in operating expenses (10% YoY) is expected to
NII 28.5 33.8 40.0 47.2 drive 20% YoY PPoP growth.
PPP 17.2 21.3 25.4 30.1 n We expect asset quality to remain largely stable. We factor in
PAT 5.6 8.8 11.3 13.3
provisions of INR1.7b, as against INR4.1b in 4QFY17 and INR1.4b
EPS (INR) 84 133 171 202
EPS Gr. (%) 5 57 29 18 in 1QFY17.
BV/Sh. (INR) 763 874 1019 1193 n The stock trades at 2.9x FY18E and 2.5x FY19E BVPS. Maintain
RoA (%) 2.7 3.6 4.0 4.0 Buy.
RoE (%) 11.7 16.2 18.1 18.3
Payout (%) 7 16 15 14 Key issues to watch for
Valuations Ø Trends in asset quality in each segment.
P/E (x) 29.9 19.0 14.7 12.4
Ø Business growth and momentum, and management
P/BV (x) 3.3 2.9 2.5 2.1
Div. Yield (%) 0.6 0.7 0.9 1.0 commentary on the same.
Ø Movement in borrowing costs and margins.
Ø Performance of the housing finance subsidiary.
Ø Management commentary on impact of GST.
Quarterly Performance INR m

Y/E MARCH FY17 FY18E FY17 FY18E
Interest Income 10,535 11,153 11,557 11,071 11,957 12,495 13,120 13,069 43,796 50,640
Interest expenses 3,672 3,802 3,933 3,937 4,036 4,116 4,219 4,476 15,344 16,847
Net Interest Income 6,863 7,351 7,624 7,134 7,921 8,379 8,900 8,593 28,452 33,793
Y-o-Y Growth (%) 19.7 22.1 17.7 14.6 15.4 14.0 16.7 20.5 19.1 18.8
Fees and Other Income 15 3 6 5 60 60 60 70 76 250
Net Operating Income 6,878 7,354 7,630 7,139 7,981 8,439 8,960 8,663 28,528 34,043
Y-o-Y Growth (%) 19.2 22.1 17.8 11.8 16.0 14.7 17.4 21.4 18.2 19.3
Operating Expenses 2,739 2,829 2,977 2,815 3,012 3,117 3,243 3,389 11,359 12,761
Operating Profit 4,139 4,525 4,653 4,324 4,969 5,321 5,717 5,275 17,168 21,282
Y-o-Y Growth (%) 21.3 29.3 19.5 26.2 20.1 17.6 22.9 22.0 25.8 24.0
Provisions 1,356 1,390 2,242 4,118 1,700 1,734 1,769 2,642 8,632 7,845
Profit before Tax 2,784 3,135 2,412 206 3,269 3,587 3,948 2,632 8,536 13,437
Tax Provisions 966 1,090 835 86 1,144 1,255 1,382 903 2,976 4,684
Net Profit 1,818 2,045 1,577 120 2,125 2,332 2,566 1,730 5,561 8,753
Y-o-Y Growth (%) 23.1 34.3 -9.5 -78.4 16.9 14.0 62.7 1,340.2 5.0 57.4
Int Exp/ Int Earned (%) 34.9 34.1 34.0 35.6 33.8 32.9 32.2 34.2 35.0 33.3
Cost to Income Ratio (%) 39.8 38.5 39.0 39.4 37.7 36.9 36.2 39.1 39.8 37.5
Tax Rate (%) 34.7 34.8 34.6 41.6 35.0 35.0 35.0 34.3 34.9 34.9
E: MOSL Estimates; * Quaterly nos and full year nos will not tally due to different way of reporting financial nos
1 August 2017 28
In conversation
1. Will try to get IPO out as soon as possible, says HDFC Life;
Amitabh Chaudhry, MD & CEO
n Not supposed to discuss the timeline but our intention is to get the initial public
offering (IPO) out as soon as possible
n Had started work on HDFC Life's IPO last year itself
n Lot of the general insurance companies have been filing for IPOs lately.
n Chairmen of both HDFC Life and Max Life mentioned that merger is off the
table.
2. Expect improvement in ROA due to healthy profile of new

products: Equitas; PN Vasudevan, MD & CEO
n 60% of the non MFI book grew by 36 percent in Q1
n GNPA of the non-MFI book has remained steady at 4.5-4.6 percent.
n On farm loan front, MFI loans don’t form part of the farm loan waiver
announced in Maharashtra.
n Branch expansion has led to increase in operational expense. However, do not
expect significant branch expansion over next 12-18 months
n Lending rates in new products are lower.
n Expects improvement in ROA due to healthy profile of new products.
n Made extra provisions in Q1 of worth Rs 23 crore.
3. Expect to beat industry revenue growth rate: Escorts; Bharat

Madan, CFO
n Expecting 12-15 percent revenue growth for the industry going forward and
hoping to beat the industry growth rate
n Q1 was slightly slow because of the goods and services tax (GST)
implementation
n Expects Q2 to be very strong, 18-20 percent growth is expected in Q2
n Company has got a strong order book from railways.
4. Expects better revenue this year: Sharda Cropchem; RV

Bubna, CMD
n There is a pressure on the margins.
n The prices in China increased and demand in Europe and Latin America got
subdued
n Speaking about overseas business, weather issues in Europe are short-term
problems and a few of registrations in Europe got expired.
n Expects revenue to be better than last year.
1 August 2017 29
From the think tank
1. Pluralism in monetary policy framework

n For a long time, India’s central bank and its monetary policy framework were a
mystery. A year ago, that changed, with India formally adopting “flexible-
inflation targeting” (FIT) in June 2016. A key feature of FIT is that monetary
policy has an explicit inflation target in the long-term but medium-term inflation
“projections” become the intermediate target. Thus, the success of FIT depends
heavily on the accuracy of medium-term inflation forecasts. Working towards a
reliable inflation-forecasting system, the Reserve Bank of India (RBI) introduced
a suite of models called the forecasting and policy analysis system (FPAS).
Central to the FPAS is the quarterly projection model (QPM), a forward-looking
model to assess the medium-term path of the economy. It relies on dynamic
stochastic general equilibrium (DSGE), a model based on the principles of New-
Keynesian (NK) economics. NK economics has become popular with most central
banks around the world
2. The economics of Aadhaar

n When it was first launched in 2009, Aadhaar signalled a promise to repair the
corroded plumbing of India’s leaky public delivery systems. The unique
biometric identity would help reduce duplicate and ghost entries in the list of
beneficiaries of government schemes, and pave the way for direct benefit
transfers to them eventually, the then government headed by the Congress
party told us. The elimination of false claimants and a chain of government
officials who administer public delivery systems would help cut down on
corruption and enable the state to do more with fewer resources, we were told.
Eight years after its launch, and more than a billion Aadhaar registrations later,
much of that promise remains unmet even as the project remains mired in a
number of controversies. The Aadhaar project has survived a change in
government but has met with a rising tide of questions from the Supreme Court,
the national auditor, and from the civil society at large.
3. The economy’s not a steam engine

n “Woh toh sirf history baat karta hai, economics bolega kya?,” or “Isn’t his
approach to economics totally different?” — These were some common
responses when Sanjeev Sanyal was appointed Principal Economic Advisor to
the ministry of finance in February. “Yes, my economics is very different from
that of conventional economists as I do not believe in equilibriums. My idea of
the economy is of an evolving ecosystem — a complex, adaptive system where
there is no predetermined path or perfect end-state. For me, economic
management is all about feedback-loops and adaptation,” says the author of
The Indian Renaissance: India’s Rise After a Thousand Years of Decline. Basically
throwing a fish in the pond and allowing it to swim? “First make sure it is a fish,
and then you throw it in the pond. Then you observe how it swims and react,”
says Sanyal.
1 August 2017 30
4. It is now time for an RBI rate cut
n There is a compelling case for the monetary policy committee to cut interest
rates when it meets this week. This newspaper has generally been conservative
on these matters because of the inflation bias hardwired into Indian
macroeconomic policy. The best indication of inflation bias is the rapid increase
in prices since 2008, despite the fact that most large economies have flirted with
deflation. India has been a global outlier. Monetary policy has had to be
asymmetrical to quell the persistent inflationary fire. The recent decline in
inflation appears to be structural in nature, as is evident from the trend in
headline inflation, core inflation and inflation expectations.
International
5. All the money in the world
n The New York Times reported on 25 July that SoftBank Group Corp. is
considering a “multi-billion dollar investment” in ride-hailing service Uber
Technologies Inc. The report said talks between the two companies were still at
a preliminary stage. SoftBank already has a stake in several Uber rivals, including
Ola (ANI Technologies Pvt. Ltd) in India and Grab (GrabTaxi Holdings Pte Ltd) in
Singapore. The Indian company already has an investment from China’s Didi
Chuxing, which also has a stake in Uber (made after Uber exited China after
selling its Chinese operations to Didi). SoftBank itself has a huge investment ($5
billion) in Didi. What this means is that SoftBank wins, no matter who does in
the market.
1 August 2017 31
Click excel icon
for detailed Valuation snapshot
valuation guide
CMP TP % Upside EPS (INR) P/E (x) P/B (x) ROE (%)
Company Reco (INR) (INR) Downside FY17 FY18E FY19E FY17 FY18E FY17 FY18E FY17 FY18E FY19E
Automobiles
Amara Raja Buy 835 1,095 31 28.0 35.3 42.1 29.8 23.6 5.5 4.6 20.3 21.2 21.3
Ashok Ley. Buy 110 118 8 4.6 5.2 7.0 24.1 21.2 5.2 4.6 23.1 23.2 27.0
Bajaj Auto Buy 2,808 3,281 17 132.3 137.2 163.6 21.2 20.5 4.8 4.3 25.3 22.2 24.0
Bharat Forge Buy 1,147 1,330 16 26.2 37.7 49.7 43.9 30.5 6.5 5.6 16.2 19.8 22.3
Bosch Neutral 24,033 23,738 -1 473.1 649.9 766.2 50.8 37.0 8.3 7.4 15.8 21.1 21.9
CEAT Buy 1,875 2,100 12 93.3 96.2 131.3 20.1 19.5 3.1 2.8 16.9 15.1 17.8
Eicher Mot. Buy 30,041 31,326 4 613.8 861.2 1,102.9 48.9 34.9 17.0 12.2 40.3 40.8 38.0
Endurance Tech. Buy 903 1,025 14 23.5 30.5 38.8 38.5 29.6 7.3 6.1 20.8 22.4 23.6
Escorts Neutral 669 732 9 20.0 37.1 45.8 33.5 18.0 3.4 2.9 10.6 17.3 18.3
Exide Ind Buy 217 269 24 8.1 9.2 11.0 26.7 23.6 3.7 3.3 13.9 14.1 15.0
Hero Moto Neutral 3,654 3,818 4 169.1 189.3 199.1 21.6 19.3 7.2 6.2 35.7 34.6 31.5
M&M Buy 1,402 1,625 16 54.3 66.7 79.9 25.8 21.0 3.2 2.9 14.2 14.1 14.6
Mahindra CIE Not Rated 251 - 5.4 9.9 11.8 46.9 25.5 2.9 2.6 6.4 10.8 11.5
Maruti Suzuki Buy 7,708 8,863 15 248.6 281.0 375.3 31.0 27.4 6.4 5.6 20.3 20.1 22.8
Tata Motors Buy 445 666 50 19.8 30.9 64.3 22.4 14.4 2.6 2.2 9.8 16.5 27.3
TVS Motor Buy 582 606 4 11.7 16.3 25.9 49.6 35.7 11.5 9.2 25.6 28.6 35.2
Aggregate 28.7 22.7 4.9 4.3 17.1 18.7 22.6
Banks - Private
Axis Bank Neutral 519 545 5 15.4 21.8 38.1 33.8 23.8 2.3 2.1 6.9 9.3 14.7
DCB Bank Neutral 195 192 -2 7.0 8.4 10.4 27.9 23.3 2.9 2.3 10.8 11.4 11.8
Equitas Hold. Buy 167 201 20 4.7 5.1 7.6 35.4 33.0 2.5 2.4 8.9 7.4 10.2
Federal Bank Buy 115 139 21 4.8 5.4 6.8 23.9 21.4 2.3 1.9 9.9 10.0 10.5
HDFC Bank Buy 1,783 2,000 12 56.8 68.2 82.1 31.4 26.1 5.3 4.6 18.3 18.8 19.6
ICICI Bank Buy 302 366 21 15.3 14.9 17.0 19.7 20.3 2.2 2.1 10.2 8.9 9.5
IDFC Bank Neutral 60 62 4 2.3 2.8 3.2 25.5 21.4 1.4 1.3 5.6 6.3 6.9
IndusInd Buy 1,642 1,800 10 47.9 61.9 76.8 34.2 26.5 4.9 4.3 15.4 17.3 18.5
J&K Bank Neutral 84 91 9 -31.3 3.8 8.2 NM 21.9 0.8 0.7 -27.0 3.5 7.2
Kotak Mah. Bk Buy 1,020 1,153 13 26.8 32.4 41.0 38.0 31.4 4.9 4.4 13.8 15.0 16.3
Under
RBL Bank 535 - 11.9 18.0 23.7 45.0 29.7 4.7 3.3 12.3 13.6 13.9
Review
South Indian Buy 30 34 13 2.2 2.9 3.7 13.9 10.6 1.2 1.1 9.5 10.8 12.7
Yes Bank Buy 1,810 2,133 18 73.0 92.3 114.5 24.8 19.6 3.9 3.3 18.9 18.3 19.5
Aggregate 30.1 24.2 3.5 3.0 11.5 12.6 14.2
Banks - PSU
BOB Buy 166 212 28 6.0 18.4 22.5 27.7 9.0 1.1 1.0 4.1 11.9 13.2
BOI Neutral 166 147 -11 -14.8 13.7 22.0 NM 12.1 0.8 0.7 -6.7 6.1 9.0
Canara Neutral 368 360 -2 18.8 30.1 47.0 19.6 12.2 0.8 0.7 4.2 6.2 9.1
IDBI Bk Neutral 59 49 -17 1.5 6.4 8.6 38.7 9.2 0.5 0.5 1.4 5.8 7.3
Indian Bk Buy 313 382 22 29.3 34.4 38.3 10.7 9.1 1.0 1.0 10.1 10.9 11.2
OBC Neutral 148 150 1 -31.6 17.1 21.4 NM 8.7 0.4 0.4 -8.4 4.6 5.4
PNB Buy 162 184 13 6.2 10.3 14.5 26.1 15.8 0.9 0.9 3.6 5.6 7.5
SBI Buy 313 362 16 0.3 17.9 23.3 1,050.8 17.4 1.5 1.4 -0.2 8.7 10.0
Union Bk Neutral 158 162 3 7.6 24.6 34.5 20.7 6.4 0.5 0.5 2.7 8.1 10.5
Aggregate 110.0 13.3 1.0 0.9 0.9 6.7 8.3
NBFCs
Bajaj Fin. Buy 1,702 1,800 6 33.6 47.6 62.9 50.7 35.7 9.7 7.9 21.7 24.3 25.9
Bharat Fin. Neutral 846 820 -3 21.0 31.8 68.7 40.3 26.6 4.8 3.9 15.1 16.1 28.0
Capital First Buy 776 925 19 24.6 33.0 43.3 31.5 23.5 3.3 2.9 12.0 13.2 15.3
Cholaman.Inv.&F
Buy 1,198 1,400 17 46.0 56.0 67.3 26.1 21.4 4.3 3.7 18.0 18.6 19.0
n
Dewan Hsg. Buy 457 630 38 29.6 37.7 47.1 15.4 12.1 1.8 1.6 14.4 14.1 15.6
GRUH Fin. Neutral 490 450 -8 8.1 9.9 12.1 60.2 49.2 18.0 14.8 32.5 33.0 32.8
HDFC Buy 1,786 1,900 6 46.8 52.9 59.0 38.1 33.8 7.1 6.4 18.9 19.3 18.4
Indiabulls Hsg Buy 1,175 1,350 15 69.0 86.3 108.4 17.0 13.6 4.1 3.6 25.5 28.2 31.3
1 August 2017 32
L&T Fin Holdings Buy 175 200 14 5.2 7.3 10.6 33.4 23.9 3.9 3.4 12.4 15.6 19.1
LIC Hsg Fin Neutral 692 750 8 38.2 55.8 53.8 18.1 12.4 3.2 2.6 19.1 23.1 18.8
Manappuram Not Rated 107 - 8.6 10.8 12.5 12.4 9.9 2.7 2.4 24.0 25.9 26.9
M&M Fin. Buy 401 459 14 7.1 13.9 17.8 56.6 28.9 3.6 3.3 6.5 12.0 14.2
Muthoot Fin Buy 473 550 16 29.5 41.0 43.3 16.0 11.6 2.9 2.5 19.4 23.2 21.4
PFC Neutral 124 117 -6 25.7 27.2 30.2 4.8 4.6 0.8 0.7 17.9 17.0 16.8
Repco Home Buy 742 936 26 29.1 35.8 42.5 25.5 20.7 4.1 3.5 17.4 18.1 18.2
REC Neutral 175 134 -23 31.4 35.0 40.4 5.6 5.0 1.0 0.9 19.9 19.1 19.1
Shriram City
Buy 2,298 2,900 26 84.3 132.8 171.2 27.2 17.3 3.0 2.6 11.7 16.2 18.1
Union
STF Buy 1,018 1,340 32 55.6 78.5 98.5 18.3 13.0 2.0 1.8 11.7 14.7 16.3
Aggregate 20.7 17.1 3.5 3.1 16.8 17.9 18.1
Capital Goods
ABB Sell 1,428 1,200 -16 19.7 22.4 31.6 72.5 63.7 9.2 8.1 12.7 12.6 15.8
Bharat Elec. Buy 179 200 12 6.9 7.2 8.1 25.8 25.0 5.3 4.1 20.6 16.5 16.8
BHEL Sell 145 100 -31 2.1 3.6 4.7 67.4 40.7 1.1 1.1 1.6 2.7 3.4
Blue Star Neutral 698 610 -13 12.9 17.8 26.6 54.2 39.2 8.8 8.3 18.0 21.7 30.1
CG Cons. Elec. Buy 219 240 10 4.7 5.0 6.4 46.8 43.5 25.4 18.8 76.4 49.7 49.7
CG Power & Indu. Sell 85 65 -23 4.1 2.3 4.5 20.6 37.1 1.3 1.2 6.2 3.4 4.2
Cummins Buy 987 1,200 22 26.5 29.2 36.0 37.2 33.8 7.3 6.7 21.2 20.7 23.5
GE T&D Neutral 395 320 -19 5.7 7.2 8.5 68.9 55.2 9.8 8.8 12.4 16.8 18.0
Havells Neutral 472 455 -4 9.6 10.9 13.8 49.4 43.2 9.0 8.0 18.2 18.6 20.7
K E C Intl Neutral 304 250 -18 11.9 12.8 16.4 25.6 23.7 4.9 4.2 21.2 19.2 20.9
L&T Buy 1,192 1,345 13 42.3 44.8 51.7 28.2 26.6 3.3 3.1 12.2 12.1 12.9
Pennar Eng. Not Rated 120 - 7.1 9.1 11.2 17.0 13.2 1.7 1.5 10.2 11.6 12.6
Siemens Neutral 1,452 1,355 -7 17.8 24.3 33.3 81.5 59.8 7.6 6.6 9.3 11.0 13.7
Solar Ind Neutral 894 825 -8 20.6 22.6 28.2 43.4 39.5 8.0 6.9 19.8 18.6 19.9
Suzlon Energy Not Rated 19 - 0.6 0.9 1.0 29.9 21.5 -1.7 -1.9 NM -8.8 -11.0
Thermax Sell 873 850 -3 30.8 32.7 34.0 28.3 26.7 3.9 3.5 14.3 13.7 12.9
Va Tech Wab. Buy 610 800 31 28.9 34.9 39.8 21.1 17.5 3.4 2.9 16.3 17.7 17.5
Voltas Sell 504 400 -21 15.5 15.6 17.6 32.6 32.3 5.0 4.5 18.0 14.7 14.9
Aggregate 35.7 32.2 4.0 3.7 11.2 11.4 12.6
Cement
Ambuja Cem. Buy 263 308 17 4.9 7.0 8.2 53.9 37.9 2.7 2.6 5.1 7.0 7.9
ACC Neutral 1,733 1,622 -6 36.1 49.8 65.0 48.0 34.8 3.8 3.6 7.9 10.6 13.1
Birla Corp. Buy 946 1,205 27 29.4 40.9 58.9 32.2 23.1 2.2 2.1 7.5 9.2 12.2
Dalmia Bharat Buy 2,661 3,162 19 38.8 66.7 87.1 68.7 39.9 4.8 4.3 7.2 11.3 13.1
Grasim Inds. Neutral 1,069 1,384 29 67.9 71.2 102.6 15.8 15.0 1.7 1.6 11.5 10.9 13.9
India Cem Neutral 203 201 -1 5.6 8.0 11.8 36.2 25.4 1.2 1.2 3.4 4.7 6.6
J K Cements Buy 1,019 1,287 26 33.7 40.4 53.5 30.2 25.2 4.0 3.5 14.4 15.0 17.2
JK Lakshmi Ce Buy 458 553 21 7.0 11.4 19.2 65.9 40.2 3.8 3.5 6.0 9.2 13.8
Ramco Cem Buy 680 823 21 27.3 31.1 37.5 24.9 21.9 4.4 3.8 19.2 18.6 19.1
Orient Cem Buy 156 185 19 -1.6 4.4 7.1 NM 35.3 3.2 3.0 -3.2 8.8 12.8
Prism Cem Buy 120 145 21 0.3 3.7 5.6 344.2 32.3 6.0 5.2 1.8 17.2 22.0
Shree Cem Buy 18,639 21,052 13 384.4 454.7 575.2 48.5 41.0 9.2 7.7 20.2 20.4 21.3
Ultratech Buy 4,060 4,936 22 96.1 91.5 138.8 42.3 44.3 4.7 4.3 11.6 10.1 14.0
Aggregate 36.3 30.9 3.5 3.2 9.7 10.4 12.9
Consumer
Asian Paints Neutral 1,159 1,200 3 21.0 22.2 26.5 55.2 52.2 14.6 13.3 28.5 26.7 28.1
Britannia Buy 3,922 4,450 13 73.7 85.4 105.5 53.2 45.9 17.5 14.4 36.9 34.4 34.7
Colgate Buy 1,079 1,335 24 21.2 25.7 31.1 50.8 42.1 23.0 21.7 50.4 53.2 60.3
Dabur Neutral 310 315 2 7.2 7.7 9.1 42.8 40.1 11.3 9.7 28.4 26.0 26.3
Emami Buy 1,106 1,265 14 26.5 28.3 33.9 41.7 39.1 14.3 12.0 35.8 33.4 34.1
Godrej Cons. Neutral 1,035 930 -10 18.9 21.8 25.0 54.7 47.5 13.3 10.3 24.6 24.5 23.0
GSK Cons. Sell 5,452 4,500 -17 156.1 166.3 181.9 34.9 32.8 7.3 7.2 22.2 22.1 22.4
1 August 2017 33
HUL Buy 1,153 1,285 11 19.6 22.9 27.3 58.7 50.3 37.4 36.1 65.6 73.1 82.8
ITC Neutral 285 280 -2 8.4 9.3 10.3 34.0 30.8 7.7 7.6 23.5 24.8 26.3
Jyothy Lab Neutral 372 405 9 11.2 8.9 11.0 33.1 41.5 6.2 6.3 21.1 15.1 18.4
Marico Neutral 334 360 8 6.3 6.9 8.4 53.1 48.0 18.5 15.8 36.7 35.5 38.1
Nestle Sell 6,750 5,740 -15 118.0 115.1 133.6 57.2 58.7 21.6 20.1 39.0 35.5 38.1
Page Inds Buy 16,384 20,195 23 238.7 317.0 400.0 68.6 51.7 27.4 21.7 40.0 42.0 42.8
Parag Milk Neutral 247 240 -3 3.6 7.4 12.3 68.6 33.2 3.2 2.9 5.9 9.1 13.4
Pidilite Ind. Neutral 795 810 2 16.7 18.1 20.6 47.5 44.0 12.3 10.1 28.2 25.2 23.5
P&G Hygiene Buy 8,065 9,082 13 144.9 155.8 181.6 55.7 51.8 46.0 36.7 45.3 78.9 74.0
Prabhat Dairy Not Rated 134 - 3.5 3.5 6.4 37.9 38.5 1.9 1.8 5.2 4.9 8.5
United Brew Neutral 820 850 4 8.7 9.7 14.7 94.3 84.5 9.4 8.6 10.4 10.7 14.6
United Spirits Neutral 2,539 2,525 -1 26.7 34.5 51.5 95.0 73.6 19.0 13.3 21.3 18.0 20.3
Aggregate 46.9 42.2 12.9 11.9 27.6 28.3 29.4
Healthcare
Alembic Phar Neutral 529 510 -4 21.6 20.5 25.5 24.5 25.9 5.2 4.6 23.0 19.0 20.4
Alkem Lab Neutral 1,823 1,900 4 75.7 79.7 95.0 24.1 22.9 5.2 4.4 23.4 20.7 21.0
Ajanta Pharma Buy 1,396 2,028 45 58.4 66.1 79.6 23.9 21.1 7.9 6.0 37.7 32.2 29.9
Aurobindo Buy 719 850 18 39.3 45.7 50.0 18.3 15.7 4.6 3.6 28.3 25.5 22.3
Biocon Sell 384 330 -14 10.2 9.7 14.2 37.7 39.6 4.8 4.4 12.3 11.1 14.5
Cadila Buy 543 510 -6 14.2 17.8 23.2 38.2 30.5 8.7 7.2 24.8 25.7 27.2
Cipla Neutral 559 500 -10 15.9 20.0 25.0 35.1 28.0 3.6 3.2 10.2 11.5 12.8
Divis Lab Neutral 672 680 1 39.7 33.6 40.0 16.9 20.0 3.8 3.4 23.5 18.1 19.4
Dr Reddy’s Neutral 2,386 2,500 5 72.6 85.1 125.2 32.9 28.0 3.2 3.0 9.6 11.3 14.8
Fortis Health Buy 156 240 54 10.3 2.1 6.1 15.1 73.8 1.6 1.4 11.3 2.0 5.3
Glenmark Neutral 697 775 11 39.3 42.9 51.7 17.7 16.2 4.4 3.5 24.7 21.6 20.9
Granules Buy 136 200 47 7.2 8.2 11.5 18.8 16.6 3.4 2.4 21.1 17.7 18.8
GSK Pharma Neutral 2,396 2,500 4 34.4 46.8 54.9 69.7 51.2 10.1 11.8 14.5 23.0 30.9
IPCA Labs Neutral 479 480 0 16.1 21.3 28.5 29.8 22.4 2.5 2.3 8.6 10.5 12.7
Jubilant Life Buy 714 905 27 37.0 47.1 56.7 19.3 15.2 3.2 2.7 18.1 19.5 19.6
Lupin Buy 1,032 1,475 43 59.2 57.9 72.0 17.4 17.8 3.5 3.0 22.0 18.2 19.4
Sanofi India Buy 4,290 4,820 12 129.1 133.6 160.6 33.2 32.1 5.7 5.3 17.1 16.6 18.1
Shilpa Medicare Buy 660 805 22 14.0 21.1 30.4 47.1 31.3 5.8 4.9 14.4 17.0 20.4
Sun Pharma Buy 532 650 22 26.1 25.2 30.8 20.3 21.1 3.5 3.3 18.5 16.1 17.9
Syngene Intl Not Rated 476 - 13.0 16.1 18.0 36.6 29.5 7.4 6.0 22.2 22.5 20.7
Torrent Pharma Buy 1,317 1,450 10 55.2 56.8 71.4 23.9 23.2 5.6 4.8 25.3 22.4 24.2
Aggregate 24.5 23.3 4.3 3.8 17.3 16.2 17.4
Logistics
Allcargo Logistics Buy 172 228 33 9.8 12.2 14.3 17.5 14.1 2.6 2.3 12.6 17.2 17.8
Blue Dart Not Rated 4,278 - 102.5 129.9 163.2 41.7 32.9 18.5 14.1 50.5 48.6 46.8
Concor Neutral 1,147 1,236 8 38.0 39.2 45.8 30.2 29.2 3.2 3.0 10.8 10.6 11.8
Gateway
Buy 274 313 14 6.8 10.7 13.6 40.2 25.5 2.4 2.3 5.9 9.1 11.1
Distriparks
Gati Not Rated 121 - 8.4 15.9 23.9 14.5 7.6 2.0 1.8 12.4 19.4 25.4
Transport Corp. Not Rated 314 - 16.9 21.0 25.9 18.5 14.9 2.9 2.5 16.7 17.8 18.6
Aggregate 28.8 24.5 3.5 3.3 12.2 13.4 15.0
Media
Dish TV Buy 83 105 27 1.0 1.4 4.0 84.0 58.4 18.0 13.8 24.1 26.8 327.5
D B Corp Buy 374 450 20 20.4 23.7 27.6 18.3 15.7 4.3 3.8 25.5 25.8 26.6
Den Net. Neutral 85 90 6 -8.6 -2.7 0.3 NM NM 1.6 1.7 -12.0 -5.3 0.7
Ent.Network Neutral 904 928 3 11.4 13.8 21.2 79.1 65.5 5.0 4.7 6.7 7.4 10.5
Hind. Media Buy 276 350 27 25.9 28.3 33.6 10.7 9.8 1.9 1.6 19.0 17.3 17.3
HT Media Neutral 92 90 -2 7.4 7.9 8.1 12.4 11.6 0.8 0.8 7.1 6.9 6.4
Jagran Prak. Buy 177 225 27 10.8 12.3 14.0 16.4 14.4 2.4 2.4 17.6 16.4 17.2
Music Broadcast Buy 359 469 31 6.4 10.0 14.3 55.8 35.8 3.7 3.4 11.2 9.9 12.6
PVR Buy 1,343 1,628 21 20.5 30.9 46.9 65.4 43.5 6.5 5.7 10.4 14.0 18.2
1 August 2017 34
Siti Net. Neutral 26 32 24 -1.8 -0.1 0.5 NM NM 3.6 3.7 -23.5 -2.0 6.9
Sun TV Neutral 783 860 10 24.9 28.5 35.9 31.5 27.5 7.9 7.2 25.0 26.3 30.2
Zee Ent. Buy 542 630 16 23.1 14.7 18.9 23.4 36.7 9.0 7.7 24.7 22.6 24.5
Aggregate 40.7 30.9 5.8 5.3 14.2 17.0 22.2
Metals
Hindalco Buy 219 308 40 16.2 21.8 26.1 13.6 10.1 1.7 1.4 14.0 15.2 15.4
Hind. Zinc Sell 282 246 -13 19.7 22.6 26.9 14.3 12.5 3.9 4.1 24.4 32.0 35.1
JSPL Buy 154 190 24 -20.9 -17.2 2.4 NM NM 0.5 0.5 -7.9 -5.4 0.8
JSW Steel Buy 221 281 27 14.8 19.0 22.6 14.9 11.7 2.4 2.0 17.3 18.7 19.0
Nalco Neutral 70 70 0 3.7 3.8 4.2 19.0 18.6 1.3 1.3 7.2 7.0 7.5
NMDC Buy 127 180 42 10.0 12.1 12.2 12.7 10.4 1.8 1.7 12.4 15.0 15.5
SAIL Sell 63 37 -42 -6.2 -10.6 -4.2 NM NM 0.7 0.8 -6.7 -12.6 -5.5
Vedanta Buy 280 316 13 15.1 24.8 33.1 18.5 11.3 1.7 1.6 9.7 14.8 18.4
Tata Steel Neutral 568 583 3 37.9 49.6 65.6 15.0 11.4 1.7 1.6 15.7 14.3 16.8
Aggregate 19.2 14.7 1.6 1.5 8.2 10.4 13.3
Oil & Gas
BPCL Neutral 471 511 9 48.3 36.7 43.5 9.7 12.8 3.0 2.6 32.4 21.7 22.3
GAIL Sell 377 340 -10 22.6 26.3 29.8 16.7 14.3 1.7 1.6 9.6 11.3 11.8
Gujarat Gas Sell 759 697 -8 20.4 33.7 46.5 37.1 22.5 6.4 5.2 17.8 25.3 28.0
Gujarat St. Pet. Neutral 194 168 -13 8.8 11.0 13.1 22.0 17.6 2.4 2.2 11.6 13.1 14.0
HPCL Buy 383 427 11 40.7 29.5 32.6 9.4 13.0 2.9 2.5 32.4 20.6 20.0
IOC Neutral 367 459 25 43.0 36.0 40.0 8.5 10.2 1.7 1.5 21.2 15.8 15.8
IGL Neutral 1,181 1,070 -9 42.5 46.8 51.9 27.8 25.2 5.6 4.8 21.0 20.6 19.6
MRPL Sell 124 113 -9 14.8 9.4 11.7 8.4 13.2 2.2 1.9 31.4 15.5 17.0
Oil India Buy 289 305 5 19.3 27.9 30.1 15.0 10.4 0.8 0.8 5.7 7.5 7.8
ONGC Buy 169 195 15 16.4 16.5 19.7 10.3 10.3 1.0 1.0 10.1 9.4 10.9
PLNG Buy 204 259 27 11.4 8.6 17.6 17.9 23.8 3.8 3.4 23.2 15.1 26.4
Reliance Ind. Neutral 1,614 1,499 -7 96.7 115.5 128.1 16.7 14.0 1.7 1.5 11.6 12.3 12.3
Aggregate 12.3 12.5 1.6 1.5 13.3 12.0 12.7
Retail
Jubilant Food Sell 1,317 850 -35 10.0 14.8 20.7 131.6 88.9 10.8 9.9 8.2 11.1 14.0
Titan Co. Neutral 543 545 0 9.0 10.3 12.1 60.2 52.9 11.4 10.4 20.6 20.6 21.6
Aggregate 64.5 55.4 11.1 10.2 17.2 18.4 19.2
Technology
Cyient Buy 525 600 14 30.6 35.4 41.9 17.1 14.8 2.8 2.5 16.2 16.6 17.3
HCL Tech. Neutral 889 950 7 59.8 61.8 65.9 14.9 14.4 3.7 3.3 27.5 24.9 23.8
Hexaware Neutral 262 235 -10 13.7 15.4 16.7 19.1 17.0 4.7 4.1 26.5 25.3 23.5
Infosys Buy 1,011 1,200 19 62.9 63.7 69.5 16.1 15.9 3.4 3.0 22.0 20.0 19.8
KPIT Tech Neutral 128 140 10 11.9 10.6 13.1 10.7 12.1 1.6 1.5 14.3 13.0 14.2
L&T Infotech Buy 764 880 15 55.5 60.2 68.0 13.8 12.7 4.8 3.7 40.4 33.0 29.4
Mindtree Sell 477 450 -6 24.9 28.7 32.9 19.2 16.6 3.1 3.1 16.8 17.3 20.1
Mphasis Neutral 605 610 1 38.9 40.3 43.0 15.6 15.0 2.1 2.2 13.2 14.5 16.2
NIIT Tech Neutral 514 540 5 38.0 42.3 48.7 13.5 12.2 1.8 1.7 13.7 14.4 15.4
Persistent Sys Buy 645 750 16 37.7 43.3 52.0 17.1 14.9 2.6 2.5 17.0 17.9 20.7
Tata Elxsi Buy 1,749 1,848 6 56.3 68.0 80.4 31.1 25.7 9.7 7.8 37.1 33.7 32.3
TCS Neutral 2,494 2,350 -6 133.4 133.6 147.7 18.7 18.7 5.6 6.0 32.6 31.1 33.5
Tech Mah Buy 385 465 21 30.9 31.0 36.2 12.5 12.4 2.1 1.9 18.4 16.0 16.9
Wipro Neutral 289 270 -7 16.9 18.1 19.1 17.1 16.0 2.7 2.6 16.9 16.1 16.1
Zensar Tech Buy 803 950 18 52.1 51.9 70.0 15.4 15.5 2.5 2.2 17.2 15.0 17.9
Aggregate 16.9 16.8 3.9 3.8 22.9 22.8 22.1
Telecom
Bharti Airtel Buy 418 490 17 11.1 4.3 6.6 37.6 96.3 2.5 2.4 6.7 2.5 3.8
Bharti Infratel Buy 402 480 19 14.9 17.9 20.4 27.0 22.4 4.8 4.1 16.2 19.8 19.4
Idea Cellular Buy 93 110 19 -1.1 -10.9 -11.3 NM NM 1.3 1.6 -1.6 -17.3 -21.7
Tata Comm Buy 670 775 16 27.2 8.7 26.1 24.6 76.9 12.0 10.4 132.2 14.5 33.6
1 August 2017 35
Aggregate 39.0 216.4 2.7 2.7 6.9 1.2 2.8
Utiltites
Coal India Buy 249 315 26 14.9 17.6 18.6 16.7 14.2 6.3 6.3 37.8 44.5 47.0
CESC Buy 943 1,360 44 51.9 88.9 99.3 18.2 10.6 1.2 1.1 6.5 10.6 10.8
JSW Energy Buy 71 85 21 3.9 3.2 3.1 18.2 22.4 1.1 1.1 6.3 4.9 4.8
NTPC Buy 164 198 21 13.0 13.4 16.2 12.6 12.3 1.4 1.3 11.5 10.9 12.3
Power Grid Buy 223 242 8 14.2 17.6 20.6 15.7 12.7 2.4 2.1 16.2 17.5 17.8
Tata Power Sell 82 68 -17 5.2 6.4 6.7 15.8 12.8 1.9 1.7 11.2 13.9 12.1
Aggregate 14.9 13.0 2.2 2.1 14.9 15.9 16.6
Others
Arvind Neutral 366 359 -2 12.4 12.5 18.1 29.5 29.2 2.6 2.5 10.3 8.8 11.8
Avenue
Neutral 918 882 -4 7.7 12.7 17.6 119.6 72.2 14.9 13.0 17.9 19.3 23.0
Supermarts
Under
Bata India 588 - 13.5 15.7 19.4 43.5 37.4 5.7 5.1 13.9 14.4 15.8
Review
Castrol India Buy 401 527 32 13.6 14.4 15.0 29.3 27.7 33.2 29.8 115.2 113.3 106.1
Century Ply. Neutral 295 323 9 8.7 9.8 12.9 33.9 30.0 9.2 7.6 31.1 27.7 29.6
Under
Coromandel Intl 449 - 16.6 21.8 26.1 27.0 20.6 4.5 4.0 17.5 20.6 21.6
Review
Delta Corp Buy 171 237 39 3.1 5.8 7.9 55.9 29.5 4.3 2.9 8.1 12.3 12.6
Dynamatic Tech Buy 2,400 3,334 39 67.6 112.9 166.7 35.5 21.3 4.9 4.0 15.1 20.7 24.3
Eveready Inds. Buy 305 368 21 12.9 14.4 17.5 23.7 21.2 7.7 6.2 37.7 32.3 31.6
Interglobe Neutral 1,291 1,283 -1 46.0 57.9 91.6 28.0 22.3 23.1 20.7 86.2 98.0 136.2
Indo Count Buy 149 200 35 13.0 13.2 15.4 11.4 11.3 3.5 2.6 34.8 26.4 23.5
Info Edge Buy 991 1,130 14 15.7 21.8 24.7 63.3 45.6 6.1 5.5 10.2 12.7 13.1
Inox Leisure Sell 254 240 -6 3.3 8.0 12.0 76.3 31.7 4.4 3.9 5.9 12.5 16.2
Under
Jain Irrigation 106 - 5.5 7.6 10.0 19.2 14.0 1.6 1.6 8.6 11.7 14.8
Review
Just Dial Neutral 378 465 23 17.5 18.5 21.1 21.7 20.5 2.9 2.6 14.8 13.4 13.7
Kaveri Seed Buy 692 755 9 19.1 31.3 37.7 36.3 22.1 4.7 5.1 13.6 21.6 26.0
Kitex Garm. Buy 259 394 52 18.6 22.1 26.2 13.9 11.7 3.7 3.0 29.8 28.6 27.6
Manpasand Buy 797 927 16 12.7 20.3 30.9 62.8 39.3 4.0 3.7 7.3 8.5 13.5
MCX Buy 1,125 1,300 16 24.8 28.0 42.2 45.3 40.2 4.2 4.0 10.2 10.2 14.5
Monsanto Buy 2,741 3,295 20 86.2 105.1 126.7 31.8 26.1 8.9 8.1 31.6 32.5 34.5
Navneet
Buy 164 226 37 7.8 9.4 11.3 21.2 17.4 5.3 4.5 26.8 27.8 28.2
Education
PI Inds. Buy 765 952 24 33.4 33.4 38.1 22.9 22.9 6.5 5.3 32.8 25.4 23.8
Piramal Enterp. Buy 2,949 3,044 3 72.6 104.1 144.6 40.6 28.3 3.8 3.5 9.8 13.0 16.4
SRF Buy 1,522 1,816 19 85.9 86.3 109.2 17.7 17.6 2.8 2.5 16.6 14.7 16.7
S H Kelkar Buy 265 287 8 7.2 8.6 10.3 36.6 30.9 4.7 4.3 13.7 14.5 15.6
Symphony Sell 1,451 1,288 -11 23.7 35.1 42.9 61.3 41.3 22.8 20.0 43.3 51.6 54.5
TTK Prestige Neutral 6,399 5,281 -17 132.1 137.8 176.1 48.5 46.4 8.7 8.0 19.5 18.0 20.7
V-Guard Neutral 178 167 -6 3.6 4.5 6.0 49.7 39.6 11.8 9.7 27.4 26.9 28.8
Wonderla Buy 352 393 12 7.0 11.9 16.0 50.3 29.5 4.6 4.1 9.5 14.8 17.5
1 August 2017 36
MOSL Universe stock performance
Company 1 Day (%) 1M (%) 12M (%) Company 1 Day (%) 1M (%) 12M (%)
Automobiles Capital Goods
Amara Raja -0.5 -0.4 -10.9 ABB 0.2 -1.6 13.3
Ashok Ley. 0.4 16.8 14.9 Bharat Elec. 0.7 10.9 44.8
Bajaj Auto -0.5 0.6 3.9 BHEL 0.8 7.0 -0.7
Bharat Forge -0.4 5.1 51.1 Blue Star -0.2 16.2 43.3
Bosch 1.1 3.1 -3.8 CG Cons. Elec. 5.0 -2.9 39.4
CEAT 1.3 4.6 117.3 CG Power & Inds Sol. 0.2 3.7 8.2
Eicher Mot. 2.4 11.2 33.7 Cummins -0.5 8.1 13.5
Endurance Tech. -1.1 2.9 GE T&D -0.3 15.2 14.3
Escorts -0.1 3.7 154.1 Havells -1.3 2.7 21.6
Exide Ind 0.3 -1.3 21.4 K E C Intl 0.3 18.3 111.9
Hero Moto 0.6 -1.2 14.0 L&T 2.8 5.9 14.8
M&M 0.6 4.0 -4.4 Pennar Eng. -1.5 -7.9 -33.9
Mahindra CIE -0.1 3.0 36.1 Siemens 0.4 8.8 9.9
Maruti Suzuki 1.1 6.8 62.1 Solar Ind -1.0 9.0 35.1
Tata Motors -0.4 2.8 -11.6 Suzlon Energy -1.3 1.1 8.6
TVS Motor -0.1 6.0 99.8 Thermax -1.9 -7.1 -1.1
Banks - Private Va Tech Wab. -0.3 -11.2 5.4
Axis Bank 0.7 0.5 -5.0 Voltas -1.3 10.0 44.0
DCB Bank 0.5 -1.8 75.7 Cement
Equitas Hold. -0.4 11.5 -14.9 Ambuja Cem. 0.2 7.1 -2.9
Federal Bank 1.3 2.2 78.1 ACC 0.3 10.5 2.6
HDFC Bank 0.3 7.9 43.1 Birla Corp. 0.4 9.0 68.4
ICICI Bank 2.0 4.1 26.4 Dalmia Bharat 0.6 7.9 85.0
IDFC Bank -1.6 8.9 15.2 Grasim Inds. 0.0 3.3 31.1
IndusInd 0.9 10.9 39.4 India Cem 0.4 3.1 63.6
J&K Bank -1.8 -2.5 24.6 J K Cements 0.9 8.4 43.8
Kotak Mah. Bk 1.6 6.7 33.9 JK Lakshmi Ce 2.7 -5.2 7.7
RBL Bank 0.0 5.8 Ramco Cem 1.0 -1.9 24.3
South Indian -0.5 8.6 56.6 Orient Cem -1.0 9.9 -8.7
Yes Bank -1.9 23.8 48.7 Prism Cem -0.2 -1.1 10.5
Banks - PSU Shree Cem 6.6 10.0 15.7
BOB 2.5 2.8 8.8 Ultratech 0.9 2.4 9.6
BOI 2.4 19.2 49.3 Consumer
Canara 1.1 11.9 50.7 Asian Paints 0.6 5.0 4.0
IDBI Bk 0.3 11.1 -15.0 Britannia 0.3 6.1 33.9
Indian Bk 1.4 11.3 97.4 Colgate 0.9 -2.9 15.6
OBC 1.2 4.8 26.9 Dabur 0.0 6.1 2.1
PNB 2.0 18.3 31.4 Emami 0.1 3.1 -2.9
SBI 4.5 14.2 36.5 Godrej Cons. -2.0 7.2 30.0
Union Bk 0.5 7.2 23.9 GSK Cons. -1.8 1.9 -13.9
NBFCs HUL -0.1 6.6 25.2
Bajaj Fin. 0.0 23.9 64.3 ITC -2.1 -11.9 13.0
Bharat Fin. 0.0 17.4 -7.0 Jyothy Lab 0.1 4.4 29.3
Capital First 1.3 16.2 5.7 Marico 0.3 6.2 17.4
Cholaman.Inv.&Fn 1.6 7.1 9.7 Nestle -0.4 0.4 -5.8
Dewan Hsg. -0.8 4.2 104.7 Page Inds -0.7 -1.8 14.4
GRUH Fin. 3.1 10.5 66.9 Parag Milk 0.0 14.6 -23.3
HDFC 0.1 10.5 30.0 Pidilite Ind. 1.0 -1.0 8.6
Indiabulls Hsg 0.0 9.2 53.8 P&G Hygiene 1.0 0.2 23.1
L&T Fin.Holdings 2.6 21.2 103.2 Prabhat Dairy -1.6 2.9 45.4
LIC Hsg Fin -4.1 -7.0 33.2 United Brew 0.5 5.1 0.9
Manappuram 1.6 9.0 30.3 United Spirits -0.7 6.0 3.5
M&M Fin. -0.2 16.2 21.1 Healthcare
Muthoot Fin 1.4 4.1 43.5 Alembic Phar -2.7 5.3 -15.6
PFC 1.1 1.6 13.8 Alkem Lab 0.6 -1.4 16.8
Repco Home -2.3 -10.0 -12.2 Ajanta Pharma -1.6 -9.7 -21.5
REC -0.2 2.2 65.1 Aurobindo -0.6 5.3 -9.2
STF 5.0 1.9 -20.5 Biocon -1.5 15.9 39.2
Shriram City Union 2.1 -3.6 16.6 Cadila -0.4 3.3 48.3
1 August 2017 37
MOSL Universe stock performance
Company 1 Day (%) 1M (%) 12M (%) Company 1 Day (%) 1M (%) 12M (%)
Cipla -1.2 0.8 5.8 Technology
Divis Lab -0.2 3.9 -44.0 Cyient 0.2 3.4 7.4
Dr Reddy’s -3.1 -11.1 -18.8 HCL Tech. -0.2 4.5 18.1
Fortis Health -2.1 -3.9 -9.1 Hexaware 0.7 8.1 18.7
Glenmark -2.8 10.3 -18.9 Infosys 1.3 8.1 -5.8
Granules -1.7 2.0 -4.4 KPIT Tech 0.7 4.2 -2.8
GSK Pharma -1.5 -4.1 -27.7 L&T Infotech 0.1 -3.4 10.5
IPCA Labs -1.1 -2.5 -7.0 Mindtree -0.4 -9.8 -17.4
Jubilant Life -1.4 4.4 113.0 Mphasis 1.5 1.0 12.1
Lupin -2.9 -2.7 -40.7 NIIT Tech -0.8 -10.9 14.1
Sanofi India 0.5 3.1 -6.0 Persistent Sys 0.1 -5.0 -6.1
Shilpa Medicare 2.2 1.4 13.0 Tata Elxsi 0.1 10.3 6.0
Sun Pharma -3.5 -4.1 -35.9 TCS 0.5 5.5 -4.8
Syngene Intl 0.0 1.1 13.9 Tech Mah 1.4 1.0 -20.8
Torrent Pharma 5.6 8.6 -8.7 Wipro 0.0 11.7 6.0
Logistics Zensar Tech 0.4 -1.6 -23.4
Allcargo Logistics 0.4 0.5 -18.5 Telecom
Blue Dart -0.5 -9.2 -26.7 Bharti Airtel 1.1 10.2 15.4
Concor -0.2 0.1 -4.4 Bharti Infratel -0.5 7.3 1.6
Gateway Distriparks -0.4 5.6 4.0 Idea Cellular -3.2 8.8 -11.5
Gati -0.5 -9.9 -34.0 Tata Comm -0.6 -7.2 52.1
Transport Corp. 0.6 -4.9 37.8 Utiltites
Media Coal India -1.0 2.0 -24.0
Dish TV 1.7 3.9 -19.4 CESC 1.4 8.3 54.1
D B Corp -0.7 -1.7 -6.8 JSW Energy -2.2 10.1 -14.7
Den Net. 1.9 8.0 -2.9 NTPC 0.2 3.6 3.6
Ent.Network 0.7 1.6 27.4 Power Grid 4.2 5.9 26.8
Hind. Media -2.7 2.4 0.6 Tata Power 0.1 1.6 13.7
HT Media 4.8 14.0 8.7 Others
Jagran Prak. 0.0 -3.3 -1.5 Arvind 1.1 1.5 19.5
Music Broadcast 0.0 2.7 Avenue Super. 2.3 12.7
PVR 0.3 -4.6 17.3 Bata India 2.1 9.5 -2.8
Siti Net. -0.4 -6.5 -33.3 Castrol India -0.7 -0.8 -9.3
Sun TV -1.7 -3.7 74.4 Century Ply. -1.7 0.3 25.5
Zee Ent. 0.4 10.1 9.0 Coromandel Intl 2.7 7.3 76.0
Metals Delta Corp -1.1 10.2 77.9
Hindalco 1.7 15.2 64.4 Dynamatic Tech 1.4 -5.4 -8.8
Hind. Zinc 1.5 7.2 38.3 Eveready Inds. -3.1 -10.5 22.5
JSPL 2.6 24.7 83.8 Interglobe 0.3 10.8 30.5
JSW Steel 2.7 8.9 32.3 Indo Count -5.2 -10.8 -17.4
Nalco 0.4 7.8 50.2 Info Edge -0.1 -3.6 21.0
NMDC 3.3 17.0 26.5 Inox Leisure 0.7 -7.0 3.4
SAIL 1.0 8.4 34.7 Jain Irrigation -1.3 3.3 49.8
Vedanta 1.8 12.3 69.9 Just Dial 1.4 1.9 -31.9
Tata Steel 2.9 4.3 60.0 Kaveri Seed 1.3 5.8 77.0
Oil & Gas Kitex Garm. -8.1 -6.0 -26.6
BPCL -0.9 10.5 19.2 Manpasand -1.3 1.0 17.8
GAIL -0.8 4.3 31.4 MCX 1.8 3.5 7.0
Gujarat Gas 0.2 2.3 28.8 Monsanto 0.7 0.1 16.5
Gujarat St. Pet. 0.4 9.8 45.7 Navneet Educat. -3.2 -8.0 68.2
HPCL 2.4 12.8 36.8 PI Inds. 0.2 -8.3 1.7
IOC 0.0 -4.6 35.2 Piramal Enterp. 0.5 5.4 84.0
IGL -0.7 11.4 82.8 SRF -1.7 -1.0 4.2
MRPL 0.2 5.2 53.3 S H Kelkar -1.5 0.5 4.2
Oil India 2.7 10.9 5.2 Symphony -0.6 6.9 20.8
ONGC 2.8 7.7 15.5 TTK Prestige 0.2 -3.2 24.4
PLNG 0.8 -5.4 37.1 V-Guard -8.1 3.0 56.2
Reliance Ind. 1.2 16.9 58.9 Wonderla -1.0 -0.4 -14.2
Retail
Jubilant Food 0.3 39.3 7.8
Titan Co. 2.0 3.7 29.6
1 August 2017 38
THEMATIC/STRATEGY RESEARCH GALLERY
REPORT GALLERY
RECENT INITIATING COVERAGE REPORTS
`
DIFFERENTIATED PRODUCT GALLERY
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India Strategy | Index Reconstitution
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Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;
MSE(F&O): INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset
Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth
26 July 2017
management 10
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Products. * Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products

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1 August 2017

Motilal Oswal values your support in the

Chart of the Day: Shilpa Medicare - Injecting growth

Research Team (Gautam.Duggad@MotilalOswal.com)

State electricity boards hurting Birla Corporation planning to

Stock Info Product approvals, superior execution to drive earnings

Valuation and view

Interaction with the CEO

n Pidilite Industries (PIDI) is cautious on near-term performance, given GST implementation.

Competition / entry into paints / APNT’s Loctite adhesive launch

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LIC Housing Finance

Container Corporation (INR Million)

Shriram Transport Finance

Quarterly Performance (INR Million)

Music Broadcast Ltd

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2W and PV wholesales volume is expected to be healthy, led by inventory build-up to meet

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Power Grid Corporation

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2. Expect improvement in ROA due to healthy profile of new

3. Expect to beat industry revenue growth rate: Escorts; Bharat

4. Expects better revenue this year: Sharda Cropchem; RV

1. Pluralism in monetary policy framework

2. The economics of Aadhaar

3. The economy’s not a steam engine

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