27 March 2017
Market snapshot
Equities - India
Close
Chg .%
Sensex
29,421
0.3
Nifty-50
9,108
0.2
Nifty-M 100
16,936
0.3
Equities-Global
Close
Chg .%
S&P 500
2,344
-0.1
Nasdaq
5,829
0.2
FTSE 100
7,337
-0.1
DAX
12,064
0.2
Hang Seng
10,478
-0.1
Nikkei 225
19,263
0.9
Commodities
Close
Chg .%
Brent (US$/Bbl)
50
1.1
Gold ($/OZ)
1,243
-0.1
Cu (US$/MT)
5,777
-0.4
Almn (US$/MT)
1,929
0.3
Currency
Close
Chg .%
USD/INR
65.4
-0.2
USD/EUR
1.1
0.2
USD/JPY
111.3
0.3
YIELD (%)
Close
1MChg
10 Yrs G-Sec
6.8
0.0
10 Yrs AAA Corp
8.1
0.0
Flows (USD b)
24-Mar
MTD
FIIs
0.1
3.3
DIIs
0.0
-1.3
Volumes (INRb) 24-Mar
MTD*
Cash
323
289
F&O
3,891
4,296
Note: YTD is calendar year, *Avg
YTD.%
10.5
11.3
18.0
YTD.%
4.7
8.3
2.7
5.1
11.5
0.8
YTD.%
-8.9
7.9
4.6
13.2
YTD.%
-3.7
2.7
-4.8
YTDchg
0.3
0.5
YTD
4.8
-0.5
YTD*
264
4,378
Today’s top research Idea
The Corner Office: M&M – Preparing for the changing landscape
v
M&M is re-aligning itself to changing landscape, and believes it is relatively
better placed due to synergies within the company and the group.
v
Farming 3.0 would define the future of agriculture in India and M&M’s FES
business. It is holistic approach for driving next leg of growth of M&M’s FES
business.
v
Farm Machinery business is expected to be the next big thing and M&M is
well prepared with recent acquisitions/alliances in that space.
v
In SUVs, its market share recovery strategy is based on recovery in existing
models (by incorporating feedback from the ground) and new models (MPV
U321 in 2HFY18 and compact SUV S201 in 1HFY19).
v
BS-VI would be disruptive as relative economics of various segments would
change. Convergence of trends like connectivity, safety and product design
with BS-VI could change competitive positioning in the Indian market.
Research covered
Cos/Sector
EcoScope
Mahindra & Mahindra
Hindustan Unilever
Aviation
JK Cement (ART)
HOEC
Dilip Buildcon
Key Highlights
Corporate sector improved in 3QFY17, but interest coverage
worsened
Preparing for the changing landscape
Interaction with the management
Downward pressure on fares continues in seasonally weak 4Q
Return ratios remain subdued
Execution capabilities par excellence
Rising star
Quote of the day
Financial security and independence are
like a three-legged stool resting on
savings, insurance and investments.
Piping hot news
10 Multi-Modal Hubs Likely Under Transport Master Plan
v
The Narendra Modi led government is working on a Rs10 lakh-crore National
Transport Master Plan that will provide seamless movement of freight and
passengers across multiple modes of transport.
Chart of the Day: Corporate sales in 3QFY17 grew fastest in nine quarters
Sales grew faster in 3QFY17, but expenses rose even faster,
widening the gap to highest since FY13
Industry-wise sales growth (% YoY)
Manufacturing
Food pdts & beverages
Textiles
Petroleum Products
Fertilizers & Pesticides
Iron and Steel
Construction
Services (other than IT)
Wholesale & retail trade
Telecommunication
IT services
Share in
sales (%)
69.8
5.7
4.1
8.3
1.4
7.8
5.7
11.2
2.1
3.7
9.6
3QFY16
2QFY17
3QFY17
Sales (% YoY)
3.7
(5.2)
4.9
10.4
5.3
(3.3)
3.1
(3.0)
(5.0)
(2.1)
(32.2)
9.3
(9.2)
1.0
(12.8)
3.4
(20.8)
26.1
(6.1)
(2.1)
(6.4)
(3.5)
5.2
(4.6)
(29.1)
0.8
(21.9)
6.8
6.2
(1.7)
7.2
9.6
7.3
To compute the growth rates in any quarter, a common set of companies
for the current and previous period is considered
Source:
Reserve Bank of India (RBI), MOSL
Research Team (Gautam.Duggad@MotilalOswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.

In the news today
Kindly click on numbers for the detailed news link
1
Oil producers consider
extending output cuts
Oil producers pledged to consider
extending their pact limiting
supply, as half a dozen nations
said more time was needed to
drain swollen stockpiles. Five the
Organisation of Petroleum
Exporting Countries members and
Oman backed an extension, with
Kuwait saying it should be…
2
The JSW Group plans to invest about Rs. 7,000 crore to develop ports in
India and abroad over the next three years, said Sajjan Jindal, Chairman,
JSW Group. The group is also considering diluting up to a 15 per cent stake
in JSW Infrastructure and going for an IPO by 2020. Jindal, addressing
media persons at the JSW Infrastructure-run Jaigarh port here, said the
company has already invested Rs. 2,000 crore in the project at Jaigarh. The
port has a capacity of 40 mtpa, which will be doubled by 2020 and raised
further to 125 mtpa by 2025…
JSW Group to invest Rs. 7,000 crore in global port business over 3
years
3
Repco Home Finance Ltd (RHFL)
has signed an agreement with
National Housing Bank for
implementation of credit-linked
subsidy scheme for the middle
income group. The scheme will be
implemented for one year with
effect from January 1, 2017, in all
statutory towns as per the Census
2011 and towns notified …
Repco ties up with NHB to roll
out subsidy scheme for
middle-income group
4
Goods vehicle owners association
to go on indefinite strike from
April 1
Goods vehicles are expected to be
off the roads across the country
from April 1 as the All India
Confederation of Goods Vehicle
Owners Association (ACOGOA),
the national apex organisation of
goods carriage owners, has
decided to go on an indefinite
strike to press for its demands…
5
A decline in net invisibles receipts
widened the current account
deficit marginally to $7.9 billion,
or 1.4 per cent of the gross
domestic product (GDP), in
October-December 2016 from
$7.1 billion, or 1.4 per of the GDP,
in the same quarter of the
previous year. The deficit rose
from $3.4 billion, or 0.6 per cent
of the GDP, in the July-September
period. Over April-December, the
current account deficit narrowed
on a contraction in the trade
deficit to $11.6 billion, or 0.7 per
cent of the GDP, from $21.6
billion, or 1.4 per cent of the…
National Waterway 1, linking
Haldia, Sahibganj, Varanasi,
likely to be ready by 2018
6
Motherson Sumi Now Weighs
$600-m Bid for Bosch Arm
Barely two months after acquiring
Finnish auto components maker
PKC Group, billionaire Vivek
Chaand Sehgal is on the prowl
again.This time, Sehgal's
multinational auto components
company Motherson Sumi is
evaluating another potential
$600-million bid for Robert Bosch
LLC's…
27 March 2017
7
TCS COO Sees Healthy
Demand in a Tough FY18
Tata Consultancy Services has not
yet seen a customer talk about
cutting its IT budget for the next
financial year, the company's
chief operating officer told ET,
showing a positive signal for
demand in what is widely
expected to be a tough year for
the sector. NG Subramaniam took
over as COO in February…
2

E
CO
S
COPE
The Economy Observer
23 March 2017
Corporate sector improved in 3QFY17, but interest coverage worsened
RBI data confirm higher manufacturing GVA growth
n
The Reserve Bank of India’s (RBI) recent data on the private corporate business sector show that aggregate sales
growth was at a nine-quarter high of 2.8% YoY in 3QFY17, while expenses grew at a faster rate of 5% due to increasing
raw material costs. Consequently, the differential between sales and expenses growth was the highest in almost five
years.
n
Surprisingly, interest payments grew sharply in 3QFY17. In comparison to a year ago, the interest coverage ratio fell
below 1x for three industries – textiles, construction and telecommunication. On the other hand, the ratio improved
from 0.8x to 1.1x for the iron & steel industry.
n
The EBIDTA margin also eased marginally to 19%, but remains close to the highest level of 20% seen in the first two
quarters of FY17.
Finally, manufacturing GVA growth – as per the RBI sample – doubled to 22.2% YoY in 3QFY17, confirming higher
growth shown by the Central Statistics Office (CSO) in its national GVA/GDP data released last month.
From industry-wise data,
the negative impact of
demonetization on several
labor-intensive or rural
industries was apparent;
however, aggregate growth
picked up.
n
Corporate sales in 3QFY17 grew fastest in nine quarters…
As per the RBI data, sales of the private corporate sector (comprising financial
results of 2,784 listed non-government non-finance companies) grew 2.8% YoY in
3QFY17, marking its highest growth in nine quarters (Exhibit 1). From industry-wise
data, the negative impact of demonetization on several labor-intensive or rural
industries was apparent; however, aggregate growth picked up. ‘Textiles’, ‘fertilizers
& pesticides’, ‘plastic products’, ‘cement products’, ‘construction’ and ‘wholesale
and retail trade’ activities contracted sharply in 3QFY17, despite a very favorable
base in some of these activities (Exhibit 2). On the other hand, ‘mining & quarrying’,
‘petroleum products’, ‘iron & steel’, ‘precious & non-ferrous metals’, ‘electrical
machinery’ and ‘hospital services’ witnessed fast growth in 3QFY17.
Exhibit 2:
Industry-wise sales growth (% YoY)
Share in
sales (%)
Manufacturing
Food pdts & beverages
Textiles
Petroleum Products
Fertilizers & Pesticides
Iron and Steel
Construction
Services (other than IT)
Wholesale & retail trade
Telecommunication
IT services
69.8
5.7
4.1
8.3
1.4
7.8
5.7
11.2
2.1
3.7
9.6
3QFY16
3.7
10.4
3.1
(2.1)
(9.2)
3.4
(6.1)
(3.5)
(29.1)
6.8
7.2
2QFY17
Sales (% YoY)
(5.2)
5.3
(3.0)
(32.2)
1.0
(20.8)
(2.1)
5.2
0.8
6.2
9.6
4.9
(3.3)
(5.0)
9.3
(12.8)
26.1
(6.4)
(4.6)
(21.9)
(1.7)
7.3
3QFY17
Exhibit 1:
Sales grew faster in 3QFY17, but expenses rose
even faster, widening the gap to highest since FY13
Difference (RHS)
30
20
10
0
(% YoY)
-10
Q3FY12
Q3FY13
Q3FY14
Q3FY15
Q3FY16
Sales
(pp)
Expenses
12
8
4
0
-4
Q3FY17
To compute the growth rates in any quarter, a common set of
companies for the current and previous period is considered
Source:
Reserve Bank of India (RBI), MOSL
27 March 2017
3

C
orner
O
ffice
the
8 March 2017
Preparing for the changing landscape
Getting set for bigger play in Farm business, and recovery in UVs
For Mahindra & Mahindra (MM), FY17 is a year of contrasting fortunes – highest-ever market
share in Tractors and lowest-ever in UVs. Against this backdrop, we met with Dr Pawan
Goenka (MD) and senior management team of MM to discuss, among other things, (i) the
company’s strategy to recover the lost market share in UVs, (ii) strategy to maintain market
share in Tractors and (iii) emerging opportunities and challenges in both UVs and Tractors.
Key takeaways:
n
M&M
n
n
n
n
Changing landscape in UVs and Tractors:
Dr Goenka highlighted how the business
Dr Pawan Goenka —
dynamics are changing in both its key businesses. Critical success elements of the
Managing Director
past – product, cost and distribution – have become hygiene factors now, while
new success factors have emerged in the form of a) solutions, b) experience and c)
Dr Pawan Goenka joined
purpose. MM is re-aligning itself to adapt to the changing landscape, and believes it
Mahindra in 1993 with the
research and development
is relatively well placed due to synergies within the company (Ssangyong, North
division. Prior to his
American Technical Centre and Mahindra Research Valley Chennai) and the group
appointment at M&M, Dr
(Pininfarina and Tech Mahindra)
[Exhibit 1, 2 and 3].
‘Farming 3.0’ – to define the future of agriculture in India and MM’s FES business:
Goenka worked for 14 years
at General Motors (Detroit).
MM is focused on driving farm prosperity, and ‘Farming 3.0’ would provide a win-
He is a fellow of the Society of
win situation for MM and farmers (defining the future of agriculture in India). From
Automobile Engineers
MM’s perspective, ‘Farming 3.0’ is a holistic way to drive the next leg of growth in
(International) and the Indian
its FES business. MM will participate in all the five areas of Farming 3.0
[Exhibit 4].
National Academy of
Farm Machinery – the next big thing:
MM has nurtured the five businesses (Agri,
Engineers. He holds a
Farm Machinery, Powerol, Africa and the US) with potential of billion dollar
Bachelors of Science in
revenues
[Exhibit 5].
Within these businesses, Farm Machinery is expected to be
Mechanical Engineering from
the next big thing, and MM is well prepared to capitalize on the opportunities with
the IIT, Kanpur; a PhD from
recent acquisitions/alliances (Mitsubishi Agricultural Machinery, Sampo Rsoenlew
Cornell University, USA; and
and Hisarlar). At the consolidated level, it expects the share of Farm Machinery
is a graduate of the Harvard
Business School Advanced
revenues to increase from 15% of consolidated FES revenues in FY17E to ~20% by
FY19E. This would be driven by ramp-up in the nascent Farm Machinery business in
Management Program.
India as well as growth in the global business
[Exhibit 6].
Passenger UVs – incorporating feedback and new product launches should help recover market share:
The UV
industry has undergone significant changes, with customer preference changing toward compact SUVs. While its
market share in bigger UVs (UV2) is intact, it needs to catch-up in compact SUVs (UV1). It is taking several
product actions in existing models to incorporate feedback from the ground to drive a recovery in models like
XUV5OO, KUV1OO and TUV3OO. More importantly, it is betting big on two new products: U321 (MPV to be
launched in 2HFY18, developed at Mahindra North America Technical Centre) and S201 (compact SUV based on
Ssangyong platform, to be launched in 1HFY19).
BS-VI would be disruptive, throwing up opportunity for the prepared:
The BS-VI implementation from April
2020 would require product overhaul, unlike past emission norm changes. Preparedness of OEMs would define
the future of many OEMs in India, as relative economics of various segments would change and cause a shift (as
cost of compliance would change economics of product – e.g. 3Ws and SCVs). It will offer competitive advantage
to OEMs that find a balance between cost and performance. Similarly, the convergence of trends like
connectivity, safety and product design with emission norms could change the competitive positioning in the
Indian market.
27 March 2017
4

n
n
n
Product development – leveraging on global R&D network:
MM has its R&D network spread globally through: i)
Mahindra Research Valley (Chennai), ii) Mahindra North American Technical Centre (MNATC), iii) Ssangyong, iv)
Pininfarina and v) Mahindra Graphic Research Design (Italy). It is leveraging this global network with core activity
being conducted at Chennai, with significant inputs from these companies. For example, the upcoming MPV
U321 is being developed by MNATC, while the compact SUV S201 is developed in India with inputs from
Ssangyong. On the other hand, Pininfarina is designing ICV under development and also helping in styling for
MM tractor.
Electric vehicles – idea whose time has come:
Dr Goenka believes that time for electric vehicle is ripe, with very
high interest from fleet owners (taxis, last mile delivery, etc.) and the government. While OEMs will have to
work on increasing range and reducing costs, the government will have work on increasing charging
infrastructure
[Exhibit 7].
For the first time, Dr Goenka is concerned with production keeping pace with demand
over next one year. MM will have a different strategy for cost-conscious commercial vehicles and high-value
personal EVs (mostly Pininfarina branded).
Other takeaways
n
MM has been constantly evaluating alliances with global OEMs, but nothing specific to share (in context of
rumors of alliance with Ford).
n
Inputs from Ssangyong and Pininfarina would be on commercial basis. For example, S201, which is based on
Ssangyong’s Tivoli platform, would have royalty payable by MM (details not disclosed).
n
It has ~120 engineers at MNATC who have worked with global OEMS in the past. MRVL (Chennai) has ~3,500
engineers. MRVL is leveraging on technical capabilities of MNATC. MM (S/A) invested ~5% of sales in FY16 in
R&D and product development, and applied for 173 patents
[Exhibit 8].
Valuation and view
n
n
n
n
We now believe that the worst is over for MM in both Tractors (driven by normal monsoon) and UVs (driven by
recent launches).
The recovery in rural markets improves visibility of volume revival in both core businesses. After a gap of four
years, both Tractors and UVs would be delivering double-digit growth over FY17-19E.
MM is one of the cheapest large-cap auto stocks, with valuations of 17x/14.2x FY18/19E consolidated EPS and
15.2x/12.8x on core P/E basis (adj. for value in subs after 20% hold-co discount).
Maintain
Buy
with a target price of ~INR1,546 (FY19 SOTP-based).
Comparative valuations
Auto OEM's
Bajaj Auto
Hero MotoCorp
TVS Motor
M&M
Maruti Suzuki
Tata Motors
Ashok Leyland
Eicher Motors
Auto Ancillaries
Bharat Forge
Exide Industries
Amara Raja Batteries
BOSCH
Endurance Tech
CMP
(INR)*
2,846
3,377
428
1,276
6,005
471
87
24,366
1,015
215
877
22,922
731
Rating
Buy
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Neutral
Buy
TP
(INR)
3,432
3,190
462
1,551
6,808
653
114
27,458
1,110
233
1,087
22,049
732
P/E (x)
FY17E FY18E
20.9
17.7
19.3
17.7
36.0
27.8
21.0
17.0
23.8
19.2
36.9
13.3
18.1
13.6
39.1
28.1
39.5
26.1
30.0
46.9
30.2
27.1
22.2
23.3
35.8
24.2
EV/EBITDA (x)
FY17E FY18E
14.9
12.4
12.8
11.7
22.2
17.5
15.9
14.1
15.4
12.1
5.9
4.2
9.5
7.5
30.3
23.0
18.6
16.5
17.2
36.6
13.9
14.8
14.1
13.8
26.3
11.8
RoE (%)
FY17E FY18E
30.0
31.0
40.1
36.8
26.4
27.9
14.3
13.6
22.8
23.2
5.2
13.3
23.1
26.3
41.1
41.2
15.9
14.2
21.6
18.8
21.2
20.6
14.9
23.1
23.4
21.8
RoCE (%)
FY17E FY18E
29.2
30.1
39.1
36.1
27.2
30.4
11.9
11.5
30.7
31.2
4.8
10.7
17.0
20.6
27.5
30.9
10.9
14.7
20.6
26.3
15.4
14.8
15.5
22.1
32.5
17.2
EPS CAGR
FY16E-18E
10.4
9.8
30.1
7.4
31.6
-1.9
28.2
32.7
15.5
14.6
14.7
15.0
20.8
Source: Company, MOSL
27 March 2017
5

Hindustan Unilever
BSE SENSEX
29,421
S&P CNX
9,108
27 March 2017
Update
| Sector:
Consumer
CMP: INR900
TP: INR893 (-1%)
Neutral
Management interaction takeaways
We interacted with the management of Hindustan Unilever to get an update on the
business. Our key takeaways:
n
The business seems to be recovering gradually on a month on month basis after
demonetization.
n
Material costs, particularly crude and vegetable oils, peaked in the month of January.
n
Large part of the price increases needed to be taken were already taken by the
December quarter.
n
Adspends were (surprisingly in our view) back to pre-demonetization levels.
Promotions have been withdrawn in categories where commodity cost inflation is
high and persist in some other categories.
n
Management remains confident of strong longer term growth from their WIMI
(Winning in Many Indias Strategy)
n
We maintain Neutral rating on the stock with a target price of INR893.
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
M.Cap. (INR b)
M.Cap. (USD b)
Avg Val ( INRm)/Vol m
Free float (%)
HUVR IN
2,164
954/783
2/-4/13
1946.5
30.6
1179.0
32.8
Financials Snapshot (INR b)
Y/E Mar
2017E 2018E 2019E
Sales
311.3 338.2 376.9
EBITDA
58.5
64.5
74.2
Adj. PAT
41.7
46.5
53.7
Adj. EPS (INR)
19.3
21.5
24.8
EPS Gr. (%)
1.1
11.7
15.4
BV/Sh.(INR)
28.0
26.9
26.8
P/E (x)
44.6
39.9
34.6
P/BV (x)
30.7
31.9
32.0
RoE (%)
67.6
78.4
92.5
RoCE (%)
88.5 102.0 120.9
Shareholding pattern (%)
Dec-16 Sep-16 Dec-15
As On
Promoter
DII
FII
Others
67.2
5.8
13.1
13.9
67.2
5.2
13.8
13.8
67.2
5.0
13.9
13.9
Update on incremental impact of demonetization and outlook
n
n
n
n
Demonetization
had effected on two sides (consumer and trade). While the
consumer effect has recovered (premiumization continues and penetration
process is increasing) and demand has moved back to pre-demon levels in
March; some stress at trade level still remained for the quarter. Nevertheless
overall performance has improved month after month since November.
Rural green shoots that were visible pre demonetization did not bear fruits
despite good monsoon due to demonetization but management believes that
recovery potential is high especially given government schemes to boost rural
consumption. In the rural segment, January and February were still recovering.
In the month of March, FMCG sector volumes appear to be up YoY.
HUL continues to do better than broader FMCG segment.
Costs and price increases
n
FII Includes depository receipts
Stock Performance (1-year)
Hind. Unilever
Sensex - Rebased
1,050
975
900
825
750
n
n
Material cost and price increases:
On a YoY basis, material costs are higher.
Crude levels as well as vegetable oil costs have come off the peak in January
2017 albeit they are still up YoY. A large part of price increases had already
been taken in December quarter, and hence price increases in the March
quarter have been lower (did not share quantum).
Ad spends
are at pre-demonetization level, which is a bit of a surprise.
Consumer promotions
are off on categories which are facing pressure from
higher commodity cost (soaps and detergents). In the other categories, some
level of promotions is still going on.
27 March 2017
6

Strategy
n
n
While the direct reach is increasing the company’s focus now is higher on
getting better throughputs through existing direct reach of ~3m outlets.
Management remains confident of longer term growth potential of around 1.5x
growth of base business in their WIMI (Winning In Many Indias) plan. Central
Indian states with weaker economies but higher growth potential are a part of
this plan. There has been a bit of a blip in achieving 1.5x growth in the current
year mainly due to demonetization.
Update on GST implementation
n
Management doesn’t see any worry in terms of GST implementation up to the
last mile retailer.
27 March 2017
7

24 March 2017
A
nnual
R
eport
T
hreadbare
J K CEMENT
Return ratios remain subdued
JK Cement’s (JKCE) FY16 annual report highlights an improvement in
the operating performance, with consolidated EBITDA rising 21% to
INR5.5b (FY15: INR4.5b) due to stabilization at UAE operations and
cost-control measures. However, consolidated PAT declined 57% to
INR0.6b (FY15: INR1.4b), with the margin contracting to a five-year
low of 1.6% due to higher finance and depreciation charges. Grey
cement (70% of revenue) realizations (-6% YoY to INR3.6k/ton) and
EBITDA margin (-10bp YoY to 8.6%) remained under pressure, partly
offset by higher realizations (+4% YoY to INR11k/ton) and EBITDA
margin (+210bp YoY to 28.3%) for white cement. CFO grew 123% to
INR6.4b (FY15: INR2.9b) due to working capital changes and also
supported by an increase in non-trade payables by INR1b. FCF
remained negative for the fourth consecutive year at INR-0.1b (FY15:
INR-4.9b) due to high capex, which led to higher reliance on debt.
Consequently, D/E stood at 2.1x (FY15: 2.0x). RoCE ex-CWIP (pre-tax)
stood at a mere 9% due to high capital intensity and low utilization
(66%). Contingent liabilities stood at 27% of net worth.
n
The
ART
of annual report analysis
EBITDA grew 21% to INR5.5b
due to cost savings and
stabilization of the UAE
operations. However, PAT fell
57% to INR0.6b (FY15:
INR1.4b) due to higher finance
and depreciation charge.
OCF grew to INR6.4b (FY15: INR2.9b), partially
supported by an increase in non-trade liabilities by
INR1b (FY15: INR0.7b). FCF post interest remained
negative due to high capex.
Rising capital intensity, along with low capacity
utilization, led to RoCE ex-CWIP (pre-tax) of mere
9%.
Ø
Ø
Ø
Stock Info
Bloomberg
CMP (INR)
Equity Shares (m)
52-Week Range (INR)
1,6,12 Rel. Perf. (%)
M.Cap. (INR b) / (USD b)
JKCE IN
630
69.9
990 / 550
-3/5/24
62.0/0.9
n
n
n
n
Operating performance improves:
EBITDA grew 21% to
INR5.5b (FY15: INR4.5b), with the margin expanding 120bp
to 14.4% (FY15: 13.2%) due to savings in input costs (mainly
freight and fuel) and a positive operational contribution from
the UAE business of INR0.6b (v/s operational loss in FY15).
High depreciation and finance cost mars profitability:
Despite EBITDA increase, consolidated PAT fell 57% to
INR0.6b (FY15: INR1.4b) on account of higher finance cost of
INR3b (FY15: INR2.3b) and depreciation charge of INR1.9b
(FY15: INR1.5b). The rise is attributable to the cost getting
expensed (earlier capitalized) post the commissioning of
plants from mid-FY15. Further, PAT margin contracted to a
five-year low of 1.6%.
Grey cement drags profitability, but white cement's
performance improves:
Performance of grey cement (70% of
revenue) remained muted with both realizations (-6% YoY)
and margins (-10bp YoY at 8.6%) under pressure. On the
contrary, white cement enjoyed higher realization (+4% YoY)
and margin expansion (+210bp YoY at 28.3%).
Operating cash flow improves; FCF remains negative:
CFO
grew 123% to INR6.4b (FY15: INR2.9b) with easing of working
capital requirements by INR1.2b (v/s -INR1.6b in FY15).
Moreover, a rise in non-trade payables by INR1b (FY15:
INR0.7b) continued to support cash flows. FCF post interest
remained at INR-0.1b (FY15: -INR4.9b) due to high capex.
Adjusted contingent liabilities rise:
Adjusted contingent
liabilities increased 7% to INR4.3b (FY15: INR4b), majorly
consisting of penalty imposed by CCI worth INR1.3b.
Contingent liabilities aggregate to 27% of net worth.
Shareholding pattern (%)
As on
Promoter
DII
FII
Others
Dec-16
67.0
15.3
10.1
7.6
Sep-16
67.0
14.1
11.2
7.6
Dec-15
67.0
25.1
0.0
7.9
Note: FII Includes depository receipts
Auditor’s name
P.L. Tandon & Company, Chartered Accountants
Sandeep Ashok Gupta
(S.Gupta@MotilalOswal.com); +91 22 39825544
Mehul Parikh
(Mehul.Parikh@MotilalOswal.com); +9122 3010 2492
Somil Shah
(Somil.Shah@MotilalOswal.com); +91 22 3312 4975
27 March 2017
8

ART #1
ACCOUNTING / AUDITING MATTERS
Standalone performance improves; higher finance cost mars profitability
JKCE’s Indian business registered meager revenue growth of 6% (FY15: +20%) to
INR35.6b (FY15: INR33.6b), despite volume growth of 9% (FY15: +16%), as
realizations declined 3%.
n
The uptrend in raw material cost continued (+11% to INR889/tonne v/s INR799
in FY15) due to higher royalty and landing costs, further stressing the gross
margin.
Standalone PAT fell 35% to
INR1b (FY15: INR1.6b) on rising
n
EBITDA grew 12% to INR5.2b (FY15: INR4.6b), with margin expanding marginally
by 80bp to 14.6% (FY15: 13.8%) due to the benefit of low inputs.
finance and depreciation cost.
n
Power & fuel cost (~21% of revenue) declined 15% on per tonne basis, mainly
due to soft petcoke prices. However, we highlight that petcoke prices have
increased 60% post balance sheet date, which will adversely impact the margin
unless countered by a hike in realizations.
n
Freight cost (~21% of revenue) declined 7% per tonne due to the benefit of
railway sidings installed during the year. However, freight costs continued to be
higher than peers even after a steep fall in FY16.
n
Depreciation expense grew 14% to INR1.6b (FY15: 1.4b), while finance cost
increased 23% to INR2.7b (FY15: INR2.2b). Consequently, PAT dropped 35% to
INR1b (FY15: INR1.6b).
n
Exhibit 3:
Standalone EBITDA improves marginally; high finance cost hurts profitability (INR b)
Particulars
Net Revenue (Operations)
Raw Materials Consumed
Gross Margin
Power and Fuel
Freight and Handling Outward
Other operating expenses
Personnel Cost
EBITDA
Depreciation
EBIT
Financial Charges
EBT
Other Income
PBT (Before Exceptional Items)
Exceptional Items
PBT
Tax
PAT
FY12
25.5
3.1
22.4
6.5
4.9
4.4
1.4
5.2
1.3
3.9
1.4
2.5
0.5
2.9
(0.1)
2.9
1.1
1.8
%
100
12.0
88.0
25.7
19.2
17.3
5.5
20.3
4.9
15.4
5.7
9.7
1.8
11.5
(0.3)
11.2
4.3
7.0
FY13
29.1
3.8
25.3
7.1
6.0
5.0
1.6
5.6
1.3
4.3
1.4
2.9
0.5
3.4
-
3.4
1.1
2.3
Standalone Operations - India
%
FY14
%
FY15
100
28.0
100
33.6
13.2
4.2
15.2
5.6
86.8
23.7
84.8
28.0
24.5
6.7
24.1
7.9
20.6
6.3
22.7
7.3
17.0
5.2
18.6
6.1
5.4
1.7
6.0
2.0
19.2
3.7
13.4
4.6
4.4
1.3
4.8
1.4
14.8
2.4
8.6
3.3
4.8
1.5
5.5
2.2
10.0
0.9
3.2
1.1
1.7
0.5
1.7
0.5
11.7
1.4
4.9
1.6
-
-
-
-
11.7
1.4
4.9
1.6
3.7
0.4
1.4
0.0
8.0
1.0
3.5
1.6
%
100
16.6
83.4
23.6
21.9
18.1
6.0
13.8
4.1
9.7
6.5
3.2
1.5
4.7
-
4.7
0.1
4.7
FY16
35.6
6.8
28.8
7.4
7.5
6.5
2.3
5.2
1.6
3.6
2.7
0.9
0.5
1.4
-
1.4
0.4
1.0
%
100
19.0
81.0
20.8
21.0
18.1
6.5
14.6
4.4
10.2
7.6
2.6
1.4
4.0
-
4.0
1.2
2.9
Source: Company Annual Report, MOSL
27 March 2017
9

Sector Update | 24 March 2017
Aviation
Downward pressure on fares continues in seasonally weak 4Q
Strong passenger growth, but at the cost of yields
n
n
n
Average fares down YoY/QoQ:
Our 1-month forward fare tracker for 11 routes shows a flattish fare trend over a
seasonally weak 4Q; average fares declined YoY/QoQ. In our interactions, airlines’ management also suggested
that fares have faced downward pressure in January and February 2017. In the seasonally strong 3Q too, there
was significant pressure on yields; IndiGo’s yield declined ~16% YoY and SpiceJet’s yield declined ~10% YoY in
3QFY17. We believe the downward pressure on yields continues in 4QFY17.
Strong passenger growth continues, but at the cost of yields:
Passenger growth remains strong – up 20% YoY in
February after 25% growth in January; 31 consecutive months of double-digit growth. However, we believe the
strong domestic passenger growth is stimulated by lower fares, as seen in the air ticket price trend. Increased
industry PLF (~83% in 4QFY15 to ~88% in 4QFY17) on a robust ASK growth (21 consecutive months of double-digit
growth) has resulted in strong RPK growth (29 consecutive months of double-digit growth).
Rising ATF prices could weigh on profitability:
ATF price increased to INR55.4/liter in 4QFY17 from INR50/liter in
3QFY17 and INR40/liter in 4QFY16. Our fare tracker shows flattish fare trend during 4QFY17, suggesting limited
ability of airlines to pass on ATF price increase due to seasonal weakness and intensified competition. Continued
downward pressure on yields along with higher ATF prices would weigh on airlines’ profitability for 4QFY17.
Exhibit 1: Average fare trends of 11 major routes*: 1-month forward fares on major routes since February 2016
Average fare trends (1-month forward)
7,300
6,100
4,900
3,700
2,500
Feb-16 Mar-16 Apr-16 May-16 Jun-16
*Note: Not a reflection of company-level averages
Indigo
SpiceJet
Jul-16
Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17
Feb-17 Mar-17 Apr-17
Source: MOSL
Exhibit 2:
Favorable macros enabled airlines to add
capacity – 21 months of double-digit ASK growth
YoY (%)
28
20
12
4
-4
Domestic ASK
Exhibit 3:
Domestic passenger load factor has increased
significantly; ~88% in 4QFY17 v/s ~83% in 4QFY15
PLF (%)
96
Domestic PLF
Linear (Domestic ASK)
Linear (Domestic PLF)
26.8
12.2
17.8
83.6
88
80
72
88.7
87.2
78.8
69.5
(2.1)
64
Source: DGCA, MOSL
Source: DGCA, MOSL
27 March 2017
10

24 March 2017
Update
| Sector:
Oil & Gas
HOEC
BSE SENSEX
29,421
S&P CNX
9,108
CMP: INR71
Rising star
To commence gas production from Assam soon
Not Rated
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
M.Cap. (INR b)
M.Cap. (USD b)
HOEX IN
130.5
80/30
9.4
0.1
Post its management change in early-2015, Hindustan Oil Exploration (HOEC) has
exhibited an increased focus on operations, instilling a greater clarity on strategy. The
immediate focus is on monetizing its gas field in Assam, improving the recovery factor in
Cambay marginal fields and reviving PY3 via integration of PY1 and PY3 fields. The
company is also focused on building a portfolio of marginal fields – it won bids for two
fields in the recently concluded Discovered Small Fields (DSF) round 2016.
Financials Snapshot (INR b)
Y/E Mar
FY14A FY15A FY16A
Net Sales
0.8
0.6
0.5
EBITDA
-0.2
-0.1
0.1
PAT
-1.2
-0.6
0.0
EPS (INR)
-9.5
-4.3
0.2
Gr. (%)
-458.2 158.9 -102.6
BV/Sh (INR)
41.1
21.5
22.1
RoE (%)
-20.6 -13.6
1.1
RoCE (%)
-7.3
-4.6
1.1
P/E (x)
0.0 -16.9 296.6
P/BV (x)
0.0
3.3
3.2
Gas production from Assam to commence shortly
n
The company has drilled and completed four wells so far, and has approval to
drill two more. A 4.5” pipeline connecting the gas field in Assam to Oil India’s
network is ready and can support gas transmission of up to 10mmscmfd.
n
Initial total production to be 20mmscfd of gas and 100 barrels of condensate
by June 2017; to ramp up to peak production of 40mmscfd by end-FY18.
n
The company is constructing a 12” pipeline. It is expected to be completed by
June 2017, with gas transmission capacity of 40mmscfd.
n
Although HOEC has a 27% PI in the field, it is entitled to a higher share of
revenue in initial years (with PI in exploration being 40%); minimal profit
sharing with the government in initial years due to cost carry.
Cambay PSC expected to be executed soon
n
Production has continued from the marginal fields of North Balol
(0.38mmscfd), Asjol (16bopd) and CB-ON-7 (102bopd).
n
HOEC expects allotment of additional R2 area through a new production
sharing contract (PSC), which would increase the prospects of the area.
Integration of PY-1 and PY-3 could brighten prospects
n
Prior to its shutdown in 2011, PY-3 was producing 3,000bopd. The company
has submitted a proposal for the integration of PY-3 with the existing facilities
at PY-1 through a 6km pipeline.
n
This would enable recovery of 1P of 14.6mmt of oil.
Set for an upward trajectory
n
Production of 20mmscfd of gas will be ramped up to 40mmscfd by end-FY18.
HOEC is entitled to a higher share of revenue in initial years (40%). The current
production is 2mmscfd of gas and 100 barrels of oil.
n
The company has also won two contract areas – B-80 (Offshore, Bombay High)
and Kherem (Onshore, Arunachal) – during the recent Discovered Small Fields
Bid Round 2016.
Ø
B-80 was discovered in 1997. With in-place reserves of 13.2m bbl of oil and
10.5bcf of gas, it test flowed 3,737bbl of oil and 7.5mmscfd of gas.
Ø
Kherem was discovered in 1994. It has in-place reserves of 3m bbl of oil and
17bcf of gas.
n
The company recorded adj. PAT of INR98m in 9MFY17 v/s INR29m in FY16.
n
Debt-free balance sheet; INR204cr of cash and equivalents (as of Dec-2016).
27 March 2017
11

HOEC, a pure E&P company, has a strong portfolio of onshore and offshore fields in
India, with a judicious mix of development and production assets. It has seven
blocks – four producing (Gujarat and Tamil Nadu) and one under development
(Assam); development is deferred on two.
It has presence in three (Cauvery, Cambay and Assam-Arakan) of the six producing
basins in India.
Balanced portfolio of assets to maintain growth momentum
n
HOEC has four producing assets and one development asset. Its producing
assets are spread over the Cauvery (Block PY-1) and Cambay (Block CB-ON-7,
Block Asjol and North Balol field) basins. Of these, two are oil-producing and two
gas-producing.
Exhibit 4:
Geographical spread-out of HOEC’s blocks
Source: Company, MOSL
27 March 2017
12

Dilip Buildcon
BSE SENSEX
29,421
S&P CNX
9,108
24 March 2017
Update
| Sector:
Engineering
CMP: INR349
Execution capabilities par excellence
Target to be debt-free over next three years
Not Rated
We recently met management of Dilip Buildcon (DBL) to get a perspective of the business.
We also visited the Guna-Biaora road and Mohanpura dam sites and were impressed with
the company’s execution capabilities. Key highlights:
Differentiated business model with strong execution capabilities
DBL operates under a differentiated business model with 100% in-house execution
capabilities. This, along with an employee base of 25,000 and an asset base of
8,500 construction equipment, eliminates the need to outsource work to
subcontractors, helping complete the projects on and before time. DBL has been
able to complete ~47 projects (covering 5,612km; 90% of the projects undertaken)
ahead of schedule and thus claim early completion bonus from the authority.
Focus on intensive pre-bidding survey to ensure selection of right projects
The company has developed criteria to carefully select projects so as to ensure that
the bids submitted are rational and that the projects, if won, are executed on time.
Before bidding, the company follows a process to visit the site, ensure that
clearances are in place, and check about land availability and project clustering
potential. Management is also very selective in terms of regions, not bidding for
the projects in Odisha, north-east, Kerala and Himachal Pradesh. The pre-bidding
survey helps ensure that it selects the right projects and execution does not suffer.
Focus shifts to large-ticket orders to improve manpower/equipment
utilization
DBL has shifted its focus to large-ticket orders (INR5-6b) from small-ticket orders
(INR2.5b). The intent is to reduce the number of sites under operation from 45
currently to around 22, ensuring better utilization of equipment/manpower and
helping manage inventory at optimal level. Management expects to increase
revenues from INR50b in FY17E to INR70b by FY19E without incurring much
incremental capex. Better asset utilization/cost rationalization will help generate
better cash flow.
Diversification of business to reduce business risk
To leverage its execution capabilities and reduce business risk, DBL has forayed into
the mining segment, where it will provide overburden removal services. The
company has order book of INR32.5b; it has booked revenue of INR1.2b in FY17,
which is expected to increase to INR10b by FY19. DBL also plans to foray into metro
projects, where it will form joint ventures with other players for technical
qualification. It plans to participate in upcoming metro project tenders in Bhopal
and Indore (30km, INR70b each).
27 March 2017
13

Robust order book provides strong revenue visibility
DBL has order book of INR147b, which provides revenue visibility of 2.5x its FY16
revenue of INR50b. Of the total order book, the road segment accounts for INR117b
and the mining segment for the rest (to be executed over next three years).
Valuation:
The stock currently trades at 17x/16x its FY17/FY18E consensus
standalone EPS of INR20.5/22.4 respectively. We do not have rating on the stock
Site visit
Guna-Biaora project
DBL has won the project on Design-Build-Finance-Operate-Transfer (DBFOT) basis.
This INR9.0b project will cater to traffic flowing from Agra/Uttar Pradesh to
Mumbai. On completion of this project and the other two adjoining stretches (being
developed by other contractors) by FY19, management expects commercial traffic
to shift from NH8 to NH3 to save time and fuel (~80km shorter route). The
construction activity is in full swing, and the company has already completed four-
laning of ~36km and 40% of total project work. The project is expected to be
completed one year ahead of the scheduled commissioning date of March 2019.
This will enable DBL to begin early toll collection from the project. Toll collection in
the first year is expected to be INR900m.
Exhibit 5:
Project Details
Project Description
Project Length
Project cost
Client
Concessionaire
EPC Contractor
Independent Engineer
Safety consultants
Appointed Date
Construction Period
Maintenance Period
LoA date
Agreement Date
Schedule completion date
n
n
n
n
n
n
n
n
n
n
n
n
n
n
Four-laning of Guna BiaoraSection of NH-3 from KM97+700 to KM191+200 in the state of
Madhya Pradesh under NHDP phase-IV on DBFOT pattern on BOT (Toll) basis
93.5 KM
INR9013.2m
NHAI
M/S Jalpa Devi Tollways Ltd
M/S Dilip Buildcon Limited
M/S Aarvee associates
M/S Rites Ltd
7th Sept 2016
910 days from appointed date
26 year
29th June 2015
19th Sept 2015
6th March 2019
Exhibit 6:
Project cost distribution
16.8%
10.9%
7.2%
8.3%
56.7%
Road Work
FoB work
Major Bridge
Structure
Other works
27 March 2017
14

In conversation
1. Maruti Suzuki: See no need for price hikes; higher retail sales
in march; RC Bhargava, Chairman
n
n
n
n
n
n
Will not be affected with BS IV norms being implemented from April ’17, have
been selling BS IV vehicles for some years now.
Looking forward to the introduction of GST; have been working with our
suppliers and our dealers to make sure that they are ready for GST.
Have asked our vendors to work with their tier II and tier III suppliers to make
sure that they also become GST compliant by July 1.
In order to maintain market share, the most important factor is the ability to
keep turning out new models, which are very market friendly and accepted by
the consumers as being products they would like to buy.
March to see high levels of retail sales. There is no slowing down of sentiment or
slowing down of any kind of demand for cars, this will continue in the next year
as well.
The introduction of GST and all is creating a very favourable sentiment that this
will very much stabilise the whole business and will promote the sale of all kinds
of products in the economy.
2. HPCL: Expect to end FY17 with GRM of USD 6/BBL; MK Surana,
CMD
n
n
n
n
n
Seeing a downward trend in the crude oil prices. We keep a close watch on the
product and the crude prices and adjust the market prices accordingly. As and
when required we will make adjustment to that effect.
We should end up the year with GRM around USD 6 a barrel. GRM is the
function of crude prices, volatility and our own efficiencies.
Organization of the Petroleum Exporting Countries (OPEC) has a meeting in May
again, need to be watchful of their move and its impact on the crude prices.
We have crossed the record throughput of any earlier years in this year around
8 days back, operational efficiency wise we are doing well.
Yet to see any clarity on the ONGC-HPCL merger.
3. Hinduja Global: There are lot of opportunities in health
insurance; Partha De Sarkar, Global CEO
n
n
n
n
Quite optimistic about the prospects of the BPM industry. Growth will come
from outsourcing and offshoring of people who hold their work in their captives
and that will come to suppliers of high quality.
Our onshore, offshore mix is very strategically designed to be able to utilise
opportunities that happen onshore as well on the back of protectionism.
Have delivered about 20% CAGR in the last five years; hopeful of matching those
numbers going forward as well.
Health insurance is going to be the prime mover of our growth going forward as
well.
27 March 2017
15

From the think tank
1. UP results and aspirational india. by GN Bajpai
n
The results of the recently concluded elections in the five States have reaffirmed
the winning political narrative of 2014 Parliamentary elections — developmental
economics. Aspirational India has rejected the politics of ‘social justice’ and
‘inclusiveness’ a la social engineering. It has also discarded the model of
coalition politics and transited to a clear mandate and diffused responsibility to
full accountability. Deliver or get booted out. This transformation looks to be an
expression of trust deficit in the competence of social engineers and their model
to deliver the promise.
2. Arun Jaitley may be right when he said victimisation kept
India INC from donating via cheque. by The Financial Express
n
Finance minister Arun Jaitley may well be right when he says the fear of
victimisation has kept India Inc from donating to political parties by cheque—he
has also removed the cap on donations now. If company A, according to this
logic, gives funds to party B then, when it comes to power, party C will try and
take revenge for funding rivals. Once RBI election bonds are available,
companies can simply buy the bonds and give them to political parties—since
the party will not disclose who gave it the bonds to, there will be no chance of
repercussions.
3. Knowhow: the ignored factor of production. by Ricardo
Hausmann
n
It has been a quarter-century since apartheid ended, and 23 years since the
African National Congress (ANC) took power in South Africa. But, as President
Jacob Zuma reported in his recent state of the nation address, the country’s
whites remain in control. “White households earn at least five times more than
black households,” said Zuma, and “only 10% of the top 100 companies on the
Johannesburg Stock Exchange are owned by black South Africans”. Whites still
represent 72% of top management. The Gini coefficient, a widely-used measure
of inequality, shows no sign of falling and remains one of the highest in the
world.
4. The tyranny of bad laws. by Livemint
n
The colonial British government passed a law in 1867 that gave it powers to
punish the owner of any sarai—defined in the law as “any building used for the
shelter and accommodation of travellers”—who refused to give free drinking
water to people who were passing by. This is one of the many ridiculous laws
that the Centre for Civil Society, a think tank, identified in its 100 Laws Repeal
Project that sought to cut down the forest of outdated edicts in the country. The
inheritors of the colonial bureaucracy still seem to cling to such ideas. Sarais
may be history but there is a new category of innkeeper that can now be
harassed.
27 March 2017
16

5. 2017: Also a love story. by Abheek Barman
n
In his socks, Desmond Coutin ho stands at a maximum 5 ft. It is Imphal, 2013,
and he is 51 ye ars old, his grey hair receding, and a scraggly stubble around his
face. He is outside a courtroom in the city, where the love of his life will receive
the same sentence she got for 13 years: another year in jail. He is clutching a
jhola inside which he's got a shawl that he shows off, and perhaps a few books,
for his loved one.Hours of waiting from that early morning hour, and then,
flocks of people streaming in. Later, an armoured vehicle, escorted by a posse of
more armoured vehicles. You'd think Osama bin Laden was in one of those vans.
International
6. A franco-german bargain to save europe. by Philip Stephens
n
The importance of the Treaty of Rome lay in the fact that even at the moment of
signature Germany and France did not agree. Germany wanted the common
market, while France was more enthusiastic about the new atomic energy
agency, Euratom. Bonn was keen to abolish tariffs on manufactured products;
Paris was determined to protect the incomes of its farmers. The future strength
of the European enterprise rested on a shared willingness to put aside such
differences in the cause of compromise. There is a mythology, particularly
prevalent in Britain, that says that the EU has always reflected a close identity of
interests and outlook between the continent’s two largest nations.
27 March 2017
17

Click excel icon
for detailed
valuation guide
CMP
(INR)
TP
% Upside
EPS (INR)
(INR) Downside FY17E FY18E FY19E
24
31
21
9
-4
6
13
0
13
8
-6
21
13
39
8
29.2
4.8
136.2
25.7
489.0
89.9
623.7
24.2
21.8
8.2
175.2
60.7
6.2
252.7
12.8
11.9
37.7
45.4
6.4
8.2
160.6 182.3
37.5
46.7
639.6 735.0
107.6 140.6
868.2 1,072.1
30.2
32.8
9.7
190.7
75.0
9.7
313.1
35.5
15.4
36.6
42.6
11.8
199.4
89.4
11.9
379.5
70.1
21.9
Valuation snapshot
P/E (x)
P/B (x)
ROE (%)
FY17E FY18E FY17E FY18E FY17E FY18E FY19E
30.0
18.1
20.9
39.5
46.9
14.7
39.1
30.2
24.2
26.1
19.3
21.0
32.3
23.8
36.9
36.0
26.9
34.8
23.4
26.2
19.5
25.0
16.0
20.0
28.7
NM
33.5
39.6
7.3
19.3
24.7
22.5
NM
12.3
49.4
8.6
21.9
21.0
32.0
18.2
26.0
34.6
18.9
11.8
47.8
31.2
13.8
16.0
25.3
38.0
23.3
13.6
17.7
27.1
35.8
12.3
28.1
24.2
16.1
22.2
17.7
17.0
20.6
19.2
13.3
27.8
18.5
19.6
19.3
22.8
16.4
20.9
15.4
15.5
23.7
5.7
27.2
28.1
6.6
15.8
19.5
9.2
7.8
8.0
11.7
8.1
7.4
11.1
12.8
5.0
10.3
26.4
21.3
10.2
38.2
28.3
11.1
13.4
22.5
29.0
6.0
3.9
5.9
6.0
9.2
2.2
13.9
5.8
2.7
3.7
7.1
3.1
2.2
5.5
1.9
8.7
4.0
2.1
2.4
2.4
1.8
4.3
1.9
1.4
4.2
0.7
4.2
4.3
0.7
3.9
3.0
1.1
0.6
0.6
0.7
0.9
0.4
0.8
1.2
0.5
0.9
7.1
4.2
1.8
13.6
5.8
3.4
2.8
2.8
2.9
4.9
3.3
5.1
5.2
7.7
1.9
9.9
4.8
2.4
3.3
6.0
2.9
2.0
4.5
1.7
7.0
3.5
1.9
2.1
2.1
1.6
3.7
1.7
1.3
3.6
0.6
3.7
3.8
0.6
3.3
2.7
1.0
0.5
0.6
0.7
0.8
0.3
0.7
1.1
0.5
0.8
5.8
3.5
1.6
11.2
5.3
3.0
2.4
2.7
2.7
21.6
23.1
30.0
15.9
18.8
16.4
41.1
21.2
11.4
14.2
40.1
14.3
7.7
22.8
5.2
26.4
15.0
6.3
10.9
11.3
9.4
18.6
10.4
7.4
15.5
-21.1
13.5
12.6
9.7
22.1
12.0
5.0
-2.4
4.9
1.4
10.4
1.7
3.9
3.9
2.8
3.3
22.5
29.6
16.6
31.0
19.6
26.0
19.1
11.4
7.7
23.1
26.3
31.0
20.6
23.4
16.9
41.2
21.8
15.6
14.9
36.8
13.6
10.3
23.2
13.3
27.9
18.9
10.3
11.8
9.9
10.4
19.3
9.9
8.9
16.4
11.6
14.5
14.4
10.0
22.6
13.6
11.5
7.0
7.2
5.8
10.2
4.8
6.8
9.2
9.7
7.9
24.1
18.0
16.6
32.1
19.6
28.9
19.5
12.2
9.7
22.9
28.2
30.9
22.0
22.6
18.9
37.1
22.1
17.7
15.9
33.0
14.5
11.3
23.2
22.2
31.4
22.0
17.3
13.1
11.1
12.1
19.8
11.3
10.2
17.2
12.5
16.0
17.7
11.3
23.0
15.5
14.4
8.9
10.3
7.3
11.1
5.6
8.6
11.5
13.0
10.1
25.9
19.4
17.2
31.6
19.0
32.3
19.6
14.0
11.4
Company
Reco
Automobiles
Amara Raja
Buy
Ashok Ley.
Buy
Bajaj Auto
Buy
Bharat Forge Buy
Bosch
Neutral
CEAT
Buy
Eicher Mot.
Buy
Endurance
Buy
Tech.
Escorts
Buy
Exide Ind
Buy
Hero Moto
Neutral
M&M
Buy
Mahindra CIE Not Rated
Maruti Suzuki Buy
Tata Motors Buy
TVS Motor
Buy
Aggregate
Banks - Private
Axis Bank
Neutral
DCB Bank
Neutral
Equitas Hold. Buy
Federal Bank Buy
HDFC Bank
Buy
ICICI Bank
Buy
IDFC Bank
Neutral
IndusInd
Buy
J&K Bank
Neutral
Kotak Mah. Bk Buy
RBL Bank
Buy
South Indian Neutral
Yes Bank
Buy
Aggregate
Banks - PSU
BOB
Buy
BOI
Neutral
Canara
Neutral
IDBI Bk
Neutral
Indian Bk
Buy
OBC
Neutral
PNB
Buy
SBI
Buy
Union Bk
Neutral
Aggregate
NBFCs
Bajaj Fin.
Buy
Bharat Fin.
Neutral
Dewan Hsg.
Buy
GRUH Fin.
Neutral
HDFC
Buy
Indiabulls Hsg Buy
LIC Hsg Fin
Buy
Manappuram Not Rated
M&M Fin.
Buy
877
1,087
87
114
2,846 3,432
1,015 1,110
22,922 22,049
1,320 1,406
24,366 27,458
731
527
215
3,377
1,276
200
6,005
471
428
732
596
233
3,190
1,546
-
6,808
653
462
489
166
159
90
1,425
275
61
1,390
75
879
493
20
1,529
535
134
240
105
1,510
345
68
1,535
75
940
450
21
1,575
9
-19
51
17
6
26
11
10
1
7
-9
3
3
14.1
7.1
6.1
4.6
56.9
17.2
3.1
48.4
-25.2
26.3
12.4
2.8
79.3
25.0
8.6
6.9
5.5
68.3
17.9
3.9
58.7
13.0
32.3
17.5
3.1
97.0
46.8
10.9
8.7
6.9
81.5
21.8
4.9
71.2
15.4
41.3
24.6
3.8
118.4
169
133
293
76
262
144
141
276
154
221
123
300
49
330
114
185
350
172
31
-7
2
-35
26
-21
31
27
12
7.5
-5.6
23.9
1.5
30.4
6.6
6.7
8.6
8.5
18.3
17.1
36.7
6.4
32.2
19.6
12.7
21.6
30.5
25.3
23.2
56.0
8.6
38.1
24.1
17.2
29.5
45.3
1,180
843
362
376
1,462
957
600
97
320
1,276
848
405
348
1,580
1,015
693
-
323
8
1
12
-7
8
6
16
1
34.1
44.6
30.7
7.9
46.8
69.5
37.6
3.8
8.4
44.6
39.5
35.6
9.8
51.7
86.2
44.7
4.3
11.1
59.3
51.5
42.0
11.7
57.3
109.6
52.6
5.2
13.9
27 March 2017
18

Click excel icon
for detailed
valuation guide
CMP
(INR)
350
145
670
174
2,095
1,030
TP
% Upside
EPS (INR)
(INR) Downside FY17E FY18E
409
17
29.7
34.7
117
-19
24.0
25.5
752
12
29.0
34.2
134
-23
29.4
35.3
2,500
1,225
19
19
91.2
58.1
130.5
77.9
Valuation snapshot
FY19E
40.5
40.5
40.5
39.9
164.2
96.7
P/E (x)
P/B (x)
ROE (%)
FY17E FY18E FY17E FY18E FY17E FY18E
11.8
10.1
2.2
1.9
19.8
20.3
6.1
5.7
1.0
0.9
16.8
16.2
23.1
19.6
3.7
3.2
17.5
17.5
5.9
4.9
1.0
0.9
18.8
19.5
23.0
17.7
16.9
64.8
25.1
30.2
43.5
21.2
34.7
52.0
50.0
8.9
19.8
29.0
12.0
73.1
38.8
86.9
37.2
25.3
29.6
32.7
47.1
41.3
32.1
58.9
15.1
21.6
27.1
73.0
22.3
NM
NM
42.0
42.5
33.7
52.7
45.9
45.2
38.6
42.1
45.2
33.0
46.7
33.6
46.7
48.0
16.1
13.2
14.6
45.8
21.2
29.2
36.3
19.8
30.3
28.3
37.0
10.5
17.0
23.9
10.2
48.3
33.1
33.7
32.6
19.4
24.4
27.1
31.3
29.9
16.8
37.4
12.3
14.8
23.7
35.4
20.2
40.5
37.4
27.9
30.6
24.3
46.5
39.7
38.0
33.9
34.5
38.9
29.1
41.8
29.6
39.3
41.2
2.8
2.1
2.9
7.7
4.6
1.2
32.9
1.1
7.4
6.2
10.1
1.7
3.1
3.0
1.7
6.7
6.6
-2.1
4.3
3.5
4.8
3.5
2.4
3.1
1.9
4.1
1.7
1.3
3.4
3.8
4.2
2.7
5.2
7.7
4.7
3.3
16.1
17.6
23.6
10.1
12.4
9.4
7.7
32.1
8.9
7.1
14.4
2.4
1.9
2.6
6.6
4.0
1.2
22.4
1.1
6.7
5.6
9.1
1.5
2.7
2.8
1.5
5.8
5.7
-2.2
4.0
3.1
4.2
3.2
2.3
3.1
1.8
3.7
1.5
1.2
3.1
3.6
3.5
2.6
4.7
6.1
4.2
3.0
14.1
13.9
22.1
8.6
10.5
8.0
6.7
33.4
7.8
6.5
12.4
12.7
12.3
17.2
11.9
19.7
4.0
94.3
5.4
22.6
11.7
20.3
21.2
16.6
10.9
14.5
9.2
18.4
NM
12.1
8.9
17.1
10.8
5.0
7.5
6.0
7.2
12.0
5.8
13.3
5.2
20.3
-3.7
-3.1
19.9
11.7
9.9
32.5
42.9
54.9
28.3
33.8
22.4
25.1
67.6
28.4
15.7
33.3
16.1
14.7
17.7
14.4
19.0
4.0
73.3
5.5
23.2
20.7
24.6
15.3
16.8
12.2
14.6
11.9
18.6
-6.7
12.6
16.7
18.2
11.9
7.4
10.4
10.9
10.4
13.1
7.6
13.6
10.5
18.9
6.6
13.1
24.4
14.5
12.5
32.3
39.1
60.1
27.3
33.0
22.2
24.7
78.4
28.1
17.2
32.4
FY19E
20.8
22.3
17.7
18.9
17.6
16.1
18.9
15.9
19.3
4.0
66.1
6.0
25.3
19.2
25.1
14.3
16.2
13.6
16.6
14.2
19.0
-8.4
13.1
17.3
18.8
12.9
7.7
13.2
13.3
13.4
14.7
7.8
16.0
14.7
20.0
11.3
20.8
24.3
15.8
14.0
32.5
37.9
68.5
27.2
33.2
21.9
23.1
92.5
28.2
18.3
34.5
Company
Muthoot Fin
PFC
Repco Home
REC
Shriram City
Union
STF
Aggregate
Capital Goods
ABB
Bharat Elec.
BHEL
CG Cons. Elec.
CG Power &
Indu.
Cummins
GE T&D
Havells
Inox Wind
K E C Intl
L&T
Pennar Eng.
Siemens
Solar Ind
Suzlon Energy
Thermax
Va Tech Wab.
Voltas
Aggregate
Cement
Ambuja Cem.
ACC
Birla Corp.
Dalmia Bharat
Grasim Inds.
India Cem
J K Cements
JK Lakshmi Ce
Ramco Cem
Orient Cem
Prism Cem
Shree Cem
Ultratech
Aggregate
Consumer
Asian Paints
Britannia
Colgate
Dabur
Emami
Godrej Cons.
GSK Cons.
HUL
ITC
Jyothy Lab
Marico
Reco
Buy
Neutral
Buy
Neutral
Buy
Buy
Neutral
Buy
Sell
Buy
Sell
Neutral
Neutral
Neutral
Neutral
Buy
Buy
Not Rated
Neutral
Neutral
Not Rated
Sell
Buy
Neutral
1,194
156
167
198
77
924
313
446
174
209
1,551
127
1,243
738
19
909
670
389
1,190
180
115
205
45
990
340
425
175
175
1,660
-
1,340
800
-
781
760
365
0
16
-31
3
-42
7
9
-5
1
-16
7
8
8
-14
13
-6
18.4
6.2
5.5
4.6
3.6
26.6
6.0
8.9
19.4
10.5
53.6
10.5
17.0
19.0
0.2
24.4
26.5
13.1
26.1
7.3
5.7
5.5
3.9
30.5
11.0
12.1
16.5
12.3
65.0
12.4
25.7
22.3
0.6
27.9
34.5
15.9
32.6
8.5
5.8
6.7
4.5
36.5
11.4
14.1
17.6
13.5
79.7
16.8
33.5
26.5
0.7
31.3
40.3
18.8
Buy
Neutral
Buy
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Buy
230
277
1,395 1,339
691
869
1,900 2,246
1,061 1,067
158
138
884
1,024
433
455
646
815
128
167
98
112
16,250 19,006
3,972 4,058
20
-4
26
18
1
-13
16
5
26
30
14
17
2
4.9
33.7
21.5
32.3
70.2
7.3
32.6
5.9
29.0
-1.8
-0.6
387.1
93.5
7.3
46.7
41.2
50.7
86.5
10.7
37.2
12.2
31.9
3.2
2.6
582.8
129.6
7.9
58.6
54.1
73.8
110.7
12.4
49.3
17.8
40.1
5.8
4.8
729.9
161.2
Neutral
Buy
Buy
Neutral
Buy
Neutral
Neutral
Neutral
Buy
Neutral
Buy
1,066
3,300
980
281
1,029
1,665
5,206
900
281
353
291
1,035
3,775
1,170
300
1,260
1,655
5,300
865
295
365
335
-3
14
19
7
22
-1
2
-4
5
3
15
20.2
71.9
21.7
7.3
24.5
36.8
157.7
19.3
8.4
7.6
6.1
22.9
83.0
25.8
8.3
29.8
42.8
178.8
21.5
9.5
9.0
7.1
26.8
101.3
31.6
9.7
36.0
49.6
190.8
24.8
10.8
10.5
8.4
27 March 2017
19

Click excel icon
for detailed
valuation guide
CMP
TP
% Upside
(INR)
(INR) Downside
6,338 6,840
8
14,652 16,910
15
225
215
-4
689
720
4
6,952 8,250
19
774
1,044
35
2,226 2,885
30
EPS (INR)
FY18E
144.0
305.1
9.7
18.3
167.7
15.4
47.0
Valuation snapshot
FY19E
171.0
388.4
12.1
20.5
198.8
19.8
64.0
P/E (x)
P/B (x)
ROE (%)
FY17E FY18E FY17E FY18E FY17E FY18E
53.4
44.0
20.1
17.3
35.9
39.2
62.2
48.0
25.7
20.3
41.3
42.2
32.0
23.3
2.6
2.3
10.8
10.5
41.4
37.7
10.7
8.7
28.0
25.4
47.7
41.5
12.9
11.1
29.0
28.8
72.5
50.4
8.7
7.5
12.6
16.0
77.8
47.4
14.7
11.4
20.8
24.0
42.2
36.5
12.4
10.9
29.5
29.8
25.9
27.9
32.6
17.0
34.5
37.2
32.7
13.7
33.7
59.9
21.3
19.6
79.8
37.1
24.0
36.1
25.7
40.1
24.9
26.7
21.5
25.8
28.7
14.6
32.1
25.3
24.6
18.0
21.6
55.5
18.0
17.0
49.6
21.0
18.8
28.8
20.0
32.4
18.5
21.3
15.0
38.8
27.4
16.2
8.8
10.4
23.5
33.9
15.9
43.6
NM
9.7
10.0
14.3
39.9
14.0
25.4
29.4
25.3
8.5
11.4
5.9
6.2
10.2
4.3
5.1
7.4
3.7
3.5
3.2
2.0
4.4
3.4
17.9
3.0
5.0
5.9
4.9
8.1
6.0
4.8
2.4
21.8
2.9
2.2
2.3
2.0
3.4
20.3
4.6
0.9
2.9
1.9
0.7
3.2
7.0
4.0
7.5
10.0
6.1
1.7
3.2
4.9
5.2
7.8
3.4
4.5
6.1
3.2
3.2
2.9
1.7
3.4
2.3
21.3
2.7
4.1
5.4
4.1
6.6
4.9
4.0
2.1
16.6
2.7
2.0
2.0
1.7
3.1
12.7
4.1
0.9
3.1
1.6
0.7
2.8
6.1
2.7
6.9
8.1
5.2
1.5
2.6
24.8
24.4
35.9
29.0
14.7
21.4
11.2
26.7
10.0
3.4
20.5
19.9
22.4
8.4
22.9
16.4
20.0
22.2
26.0
17.9
12.0
50.5
8.6
7.6
12.4
16.7
11.0
38.2
27.0
-4.1
-16.6
19.3
7.7
20.7
10.6
-10.2
25.1
31.3
17.3
16.1
20.9
24.7
22.0
30.9
26.0
14.1
26.5
13.2
18.4
14.1
3.3
18.9
16.6
43.0
13.5
23.9
18.7
22.3
22.5
29.2
18.9
14.9
48.6
10.3
12.9
19.4
17.8
13.3
46.1
27.1
2.1
-6.1
17.8
7.1
20.6
16.3
23.5
27.3
30.3
20.6
18.8
25.2
FY19E
42.3
43.2
12.9
23.4
29.5
17.8
24.9
30.3
25.3
21.7
29.9
23.8
15.7
27.9
14.7
19.5
15.4
6.0
19.1
18.4
56.9
15.9
22.1
19.8
22.4
20.7
29.6
19.3
15.0
46.8
10.6
15.3
25.4
18.6
14.3
44.7
27.5
8.1
3.3
16.9
7.0
20.4
22.0
11.2
29.0
29.3
21.7
17.7
22.0
Company
Reco
Nestle
Neutral
Page Inds
Buy
Parag Milk
Neutral
Pidilite Ind.
Neutral
P&G Hygiene Buy
United Brew Buy
United Spirits Buy
Aggregate
Healthcare
Alembic Phar Neutral
Alkem Lab
Neutral
Ajanta Pharma Buy
Aurobindo
Buy
Biocon
Sell
Cadila
Buy
Cipla
Neutral
Divis Lab
Neutral
Dr Reddy’s
Neutral
Fortis Health Buy
Glenmark
Neutral
Granules
Buy
GSK Pharma Neutral
IPCA Labs
Neutral
Lupin
Buy
Sanofi India
Buy
Sun Pharma
Buy
Syngene Intl Not Rated
Torrent
Buy
Pharma
Aggregate
Logistics
Allcargo
Buy
Logistics
Blue Dart
Not Rated
Concor
Neutral
Gateway
Buy
Distriparks
Gati
Not Rated
Transport Corp.Not Rated
Aggregate
Media
Dish TV
Buy
D B Corp
Buy
Den Net.
Neutral
Hathway Cab. Buy
Hind. Media Buy
HT Media
Neutral
Jagran Prak. Buy
PVR
Buy
Siti Net.
Neutral
Sun TV
Neutral
Zee Ent.
Buy
Aggregate
Metals
Hindalco
Buy
Hind. Zinc
Neutral
FY17E
118.7
235.6
7.0
16.6
145.7
10.7
28.6
602
2,212
1,827
688
1,142
446
593
623
2,623
177
887
137
2,754
587
1,484
4,651
703
522
1,412
630
1,850
2,028
915
750
510
550
600
2,875
240
990
160
2,700
540
1,850
5,000
850
-
1,700
5
-16
11
33
-34
14
-7
-4
10
36
12
17
-2
-8
25
8
21
20
23.2
79.3
56.0
40.5
33.2
12.0
18.1
45.4
77.7
3.0
41.6
7.0
34.5
15.8
61.8
129.0
27.4
13.0
56.8
27.9
85.7
63.8
47.0
35.6
17.7
24.1
34.6
121.7
3.2
49.2
8.0
55.5
27.9
79.0
161.6
35.1
16.1
76.3
35.1
100.0
79.6
54.6
44.5
23.0
31.1
40.6
151.4
6.5
60.5
11.7
64.4
37.3
89.3
193.8
42.2
18.0
93.4
166
5,039
1,252
254
140
218
191
-
1,309
314
-
-
15
5
24
9.5
102.5
36.0
8.8
8.4
16.9
11.1
129.9
45.8
15.7
15.9
21.0
12.5
163.2
50.0
20.1
23.9
25.9
17.6
49.1
34.8
29.1
16.7
12.9
31.0
63.4
18.0
NM
NM
10.8
10.1
16.2
68.6
NM
30.1
42.4
35.0
11.3
16.3
107
379
81
38
285
82
175
1,426
38
755
518
115
450
75
47
355
85
215
1,533
40
735
600
8
19
-7
23
25
4
23
8
5
-3
16
1.7
21.1
-3.6
-2.4
26.5
8.0
10.8
20.8
-0.9
25.1
12.2
3.2
23.9
1.9
-0.8
29.4
8.2
12.2
35.7
2.7
29.7
17.6
4.8
27.4
7.7
0.4
33.2
8.7
13.9
56.8
1.2
34.5
20.9
194
323
240
307
23
-5
17.2
19.8
22.9
28.2
25.6
29.5
27 March 2017
20

Click excel icon
for detailed
valuation guide
CMP
(INR)
120
187
75
137
62
267
493
TP
% Upside
EPS (INR)
(INR) Downside FY17E FY18E
180
50
-23.9 -17.5
226
21
13.6
19.0
83
11
3.6
5.3
179
31
12.2
12.3
28
-55
-8.7
-14.2
279
5
18.9
31.1
401
-19
17.4
43.8
Valuation snapshot
FY19E
-2.2
19.4
5.5
12.9
-1.3
33.1
51.4
P/E (x)
P/B (x)
ROE (%)
FY17E FY18E FY17E FY18E FY17E FY18E
NM
NM
0.3
0.3
-8.0
-4.5
13.7
9.8
2.1
1.8
16.4
19.6
20.9
14.0
1.4
1.3
6.9
9.7
11.2
11.1
1.8
1.7
13.5
15.6
NM
NM
0.7
0.9
-9.6
-17.9
14.1
8.6
1.5
1.4
11.7
17.1
28.4
11.3
4.0
3.1
12.6
31.3
20.0
13.2
1.5
1.4
7.4
10.5
11.5
21.2
16.0
18.0
9.6
8.6
23.4
7.9
12.1
15.3
17.4
12.8
12.6
84.3
83.6
48.5
52.5
14.4
15.0
16.1
16.4
11.3
12.7
18.7
14.2
11.0
15.5
25.3
17.9
14.6
15.3
13.4
16.7
30.1
20.0
NM
85.8
38.0
17.4
16.5
16.8
13.7
11.7
23.7
13.4
14.4
11.5
9.4
23.6
8.0
8.5
9.1
14.7
11.2
10.9
48.3
42.7
46.3
46.0
12.1
13.4
14.4
15.2
9.6
12.0
13.9
14.6
8.5
13.1
20.8
16.6
12.9
13.8
10.8
15.5
44.5
18.6
NM
23.2
109.2
14.9
11.1
20.6
11.5
3.0
1.1
1.9
2.1
2.6
2.1
4.9
2.2
1.1
1.3
3.9
1.4
1.7
8.8
3.4
9.6
8.5
2.3
3.8
3.9
3.4
1.7
4.8
3.1
2.2
1.5
2.5
9.7
5.7
2.7
2.5
2.5
4.0
2.0
3.2
1.3
-92.5
2.2
6.1
1.9
1.2
1.4
2.5
1.1
1.8
1.8
2.2
1.8
4.2
1.8
1.0
1.3
3.3
1.3
1.5
9.6
3.1
8.4
7.7
2.0
3.7
3.3
3.1
1.4
4.0
2.8
2.0
1.3
2.3
7.7
5.7
2.4
2.2
2.1
3.7
1.9
2.9
1.6
31.1
2.2
6.1
1.6
1.1
1.3
27.5
5.3
14.1
12.0
27.9
25.9
22.1
31.0
9.5
8.7
24.4
11.7
13.2
10.4
4.2
21.2
16.2
15.7
27.3
26.5
23.2
14.0
41.8
17.1
14.1
14.2
17.5
42.5
33.9
20.1
17.0
20.0
23.7
6.7
15.7
-4.4
-75.4
5.8
35.2
11.0
7.0
10.8
23.4
4.6
13.7
13.5
20.7
20.7
19.3
24.7
12.7
14.4
24.2
12.1
13.9
19.9
7.7
19.3
16.8
16.5
27.7
25.0
22.5
15.9
36.2
21.0
14.4
16.5
18.9
41.3
33.4
20.0
17.0
21.1
24.0
4.3
15.9
-21.4
402.2
2.0
41.0
15.8
5.6
11.9
FY19E
-0.6
17.1
9.3
15.0
-1.8
16.4
28.9
12.2
21.8
4.6
13.7
14.5
18.7
19.1
19.4
22.5
12.1
14.2
27.4
11.7
13.5
25.1
11.0
19.7
18.1
16.2
27.8
22.2
22.3
15.1
32.8
21.1
14.8
15.5
20.6
40.8
33.3
19.7
17.3
19.8
23.1
6.4
16.7
-28.5
97.6
4.0
46.0
15.2
2.2
13.3
Company
Reco
JSPL
Buy
JSW Steel
Buy
Nalco
Buy
NMDC
Buy
SAIL
Sell
Vedanta
Neutral
Tata Steel
Sell
Aggregate
Oil & Gas
BPCL
Buy
Cairn India
Neutral
GAIL
Neutral
Gujarat St. Pet. Neutral
HPCL
Buy
IOC
Buy
IGL
Neutral
MRPL
Neutral
Oil India
Buy
ONGC
Neutral
PLNG
Buy
Reliance Ind. Neutral
Aggregate
Retail
Jubilant Food Neutral
Shopper's Stop Neutral
Titan Co.
Neutral
Aggregate
Technology
Cyient
Buy
HCL Tech.
Buy
Hexaware
Neutral
Infosys
Buy
KPIT Tech
Neutral
L&T Infotech Buy
Mindtree
Neutral
Mphasis
Neutral
NIIT Tech
Neutral
Persistent Sys Neutral
Tata Elxsi
Buy
TCS
Neutral
Tech Mah
Buy
Wipro
Neutral
Zensar Tech
Buy
Aggregate
Telecom
Bharti Airtel Buy
Bharti Infratel Buy
Idea Cellular Buy
Tata Comm
Buy
Aggregate
Utiltites
Coal India
Neutral
CESC
Buy
JSW Energy
Buy
NTPC
Buy
650
296
381
159
518
373
1,005
102
333
192
397
1,286
778
-
335
163
620
458
1,032
114
382
204
460
1,240
20
-12
3
20
23
3
12
15
6
16
-4
56.6
14.0
23.9
8.8
53.8
43.5
43.0
12.9
27.5
12.6
22.8
100.2
55.5
12.5
28.5
11.0
45.0
39.9
42.6
12.7
39.0
21.1
26.9
115.1
60.0
12.8
31.0
13.2
46.2
41.7
49.9
13.9
39.8
21.0
36.6
122.7
1,081
342
448
1,008
300
420
-7
-12
-6
12.8
4.1
9.2
22.4
8.0
9.7
29.9
12.6
11.2
473
871
221
1,032
132
689
469
603
421
603
1,500
2,427
474
513
917
600
1,000
220
1,250
150
800
530
550
470
730
1,780
2,550
580
540
1,250
27
15
0
21
14
16
13
-9
12
21
19
5
22
5
36
32.8
58.1
13.7
62.8
11.7
54.2
25.1
42.6
38.2
38.9
59.3
135.6
32.5
33.4
68.6
39.1
65.1
15.3
67.8
13.8
57.5
33.7
41.4
49.3
46.2
72.1
146.5
36.7
37.2
85.0
43.3
70.6
15.9
74.4
15.3
62.3
38.1
45.0
51.9
52.6
89.0
159.2
41.5
41.7
93.3
340
310
91
730
410
435
120
811
20
40
32
11
11.3
15.6
-3.1
8.5
7.7
16.7
-13.2
31.4
11.8
19.9
-14.0
44.8
298
828
62
164
315
970
81
199
6
17
31
21
17.2
50.2
3.7
12.0
20.0
74.5
3.0
14.3
22.5
82.1
1.2
17.3
27 March 2017
21

Click excel icon
for detailed
valuation guide
CMP
(INR)
194
TP
% Upside
EPS (INR)
(INR) Downside FY17E FY18E FY19E
243
25
15.3
17.7
20.7
Valuation snapshot
P/E (x)
P/B (x)
ROE (%)
FY17E FY18E FY17E FY18E FY17E FY18E FY19E
12.6
10.9
2.1
1.8
17.4
17.5
17.7
14.6
12.4
2.3
2.1
15.8
17.1
18.0
28.9
49.6
30.7
54.2
19.5
54.3
42.4
20.1
26.0
14.9
48.6
100.0
17.2
33.4
23.9
16.2
48.1
42.9
34.3
28.1
25.0
19.3
40.8
56.2
53.9
45.7
54.7
18.0
38.0
30.3
28.2
15.9
25.8
25.4
17.9
18.9
11.9
43.3
30.6
12.5
31.0
19.6
13.6
31.0
29.8
28.0
24.5
14.6
15.9
30.1
43.2
41.5
36.9
32.0
2.7
5.4
32.3
9.4
3.4
4.7
5.8
6.7
17.9
4.3
5.2
3.9
1.5
5.1
4.0
4.4
3.5
4.7
10.4
7.7
2.4
3.0
5.3
30.6
8.6
12.1
5.0
2.4
4.9
29.2
7.6
3.0
3.5
4.8
5.4
15.6
3.1
4.8
3.5
1.4
4.5
3.7
3.5
3.2
4.3
9.7
6.2
2.2
2.6
4.7
26.0
7.8
9.7
4.5
10.4
11.3
110.9
18.2
18.5
9.0
15.1
37.8
72.8
33.8
11.1
3.8
8.6
16.5
17.3
29.9
8.6
11.4
30.4
30.9
10.0
16.5
13.5
56.8
16.6
29.4
9.5
14.0
13.4
101.4
29.8
20.4
15.7
20.7
33.1
88.1
30.2
11.5
11.5
11.7
15.5
19.8
28.7
9.6
15.2
35.9
27.9
15.7
17.4
16.6
65.0
19.7
29.1
14.8
16.3
15.0
97.0
30.7
22.8
17.0
24.3
32.5
101.2
26.8
12.3
14.3
14.8
16.2
22.9
27.7
16.3
18.5
39.6
27.8
18.2
19.1
19.1
66.3
22.4
27.6
17.5
Company
Power Grid
Aggregate
Others
Arvind
Bata India
Castrol India
Century Ply.
Coromandel
Intl
Delta Corp
Dynamatic
Tech
Eveready Inds.
Interglobe
Indo Count
Info Edge
Inox Leisure
Reco
Buy
Buy
Buy
Buy
Buy
Under
Review
Buy
Buy
391
539
419
248
317
177
2,864
249
1,020
203
823
250
95
573
560
422
718
1,216
2,501
854
1,859
1,593
305
1,518
5,806
169
382
430
483
510
211
-
229
3,388
287
1,010
205
1,075
207
-
443
577
551
843
1,400
-
1,046
2,200
1,825
371
1,053
5,326
125
393
10
-10
22
-15
13.5
10.9
13.6
4.6
16.3
21.8
14.2
13.8
8.8
20.0
6.9
112.9
13.9
54.1
17.1
19.0
8.2
7.6
18.5
28.6
31.0
23.1
40.8
89.3
34.8
127.1
99.9
10.1
35.1
139.9
4.6
11.9
28.6
17.7
14.6
11.3
25.5
7.6
166.7
16.9
72.2
20.6
21.9
11.5
10.0
22.1
36.1
36.7
38.3
54.3
109.3
43.6
164.7
125.1
13.3
42.9
178.6
5.4
16.0
29
18
15
-1
1
31
-17
3.3
67.6
12.4
39.3
13.7
16.9
2.5
5.5
Buy
Neutral
Buy
Buy
Sell
Under
Jain Irrigation
Review
Just Dial
Buy
Kaveri Seed
Neutral
Kitex Garm.
Buy
Manpasand
Buy
MCX
Buy
Under
Monsanto
Review
PI Inds.
Buy
Piramal Enterp. Buy
SRF
Buy
S H Kelkar
Buy
Symphony
Sell
TTK Prestige Neutral
V-Guard
Neutral
Wonderla
Buy
-23
3
31
17
15
17.2
23.4
26.0
14.9
28.3
72.9
22
18
15
22
-31
-8
-26
3
30.4
74.5
82.4
7.5
27.0
107.8
3.7
7.0
27 March 2017
22

MOSL Universe stock performance
Company
Automobiles
Amara Raja
Ashok Ley.
Bajaj Auto
<