19 June 2017
Market snapshot
Close
Chg .%
Equities - India
Sensex
31,056
-0.1
Nifty-50
9,588
0.1
Nifty-M 100
18,003
0.1
Equities-Global
Close
Chg .%
S&P 500
2,433
0.0
Nasdaq
6,152
-0.2
FTSE 100
7,469
0.7
DAX
12,729
0.3
Hang Seng
10,385
0.4
Nikkei 225
19,943
-0.6
Commodities
Close
Chg .%
Brent (US$/Bbl)
47
1.2
Gold ($/OZ)
1,256
0.2
Cu (US$/MT)
5,639
0.0
Almn (US$/MT)
1,856
-0.3
Currency
Close
Chg .%
USD/INR
64.4
-0.2
USD/EUR
1.1
0.3
USD/JPY
111.3
0.3
YIELD (%)
Close
1MChg
10 Yrs G-Sec
6.5
0.0
10 Yrs AAA Corp
7.5
0.0
Flows (USD b)
16-Jun
MTD
FIIs
-0.1
0.3
DIIs
0.1
0.5
Volumes (INRb)
16-Jun
MTD*
Cash
318
266
F&O
2,862
4,409
Note: YTD is calendar year, *Avg
YTD.%
16.6
17.1
25.4
YTD.%
8.7
14.3
4.6
10.9
10.5
4.3
YTD.%
-15.9
9.0
2.1
8.9
YTD.%
-5.1
6.3
-4.9
YTDchg
0.0
0.0
YTD
8.2
2.8
YTD*
286
4,759
Today’s top research idea
Petronet LNG: For the long haul; Volume growth to continue
for a long time
v
PLNG has witnessed ~6% volume CAGR over FY12-17, its volumes grew 25% in
FY17, aided by favorable LNG prices and Dahej expansion. To better capture
sporadic increases in offtake, as PLNG expands its Dahej facility and ramps up
Kochi utilization, we believe a 3-5 year view on its prospects is desirable.
v
We expect a volume CAGR of 10% over the next three years (FY17-20E) for
PLNG. Low LNG prices along with lack of domestic gas availability and huge
unmet demand is likely to result in sustained volume growth for PLNG for a
long time to come.
v
Additional factors contributing to our Buy recommendation: (1) lack of
competition, (2) Dahej being the most economical facility, (3) firm contracts at
Dahej and Kochi, and (4) expansion of gas pipeline network across India.
v
Assuming 3% terminal growth and WACC of 11%, we arrive at a one-year
target price of INR546 (upside of 23%) and a three-year price target of INR767.
Maintain
Buy.
Research covered
Cos/Sector
Petronet LNG
EcoScope
Cement
Aviation Monthly
Key Highlights
For the long haul; Volume growth to continue for a long time
CAD narrows to 0.7% of GDP in FY17
Price correction across most regions in May/June
Domestic passenger growth for May 2017 at 17.6% YoY
Piping hot news
GST Council meet clears 5 set of rules, defers e-way bill rule, relaxes
deadline for filing returns
palatable specifying a sunset clause of two years even as it relaxed the
deadline for filing returns under the goods and services tax (GST) till
September.
v
The GST Council on Sunday made the dreaded anti-profiteering clause more
Quote of the day
Goals in writing are dreams with
deadlines
Current account deficit narrows to 0.6% of GDP in 4QFY17
Chart of the Day: EcoScope – CAD narrows to 0.6% of GDP in 4QFY17; Gross domestic
savings fall to 13-year low
Domestic savings fell further in 4QFY17
# Implied savings; Does not include ‘errors & omissions’
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 textbox for the detailed news link
1
Sebi may make acquisition of
distressed assets stress-free
Sebi) is set to ease rules of
acquisition to make it more
attractive for investors to buy
distressed companies from banks
amid the renewed push to resolve
banks’ bad loan burden by the
government and the Reserve Bank
of India (RBI)…
2
Brands such as Korres, Migato, Evisu, Wallstreet English, Pasta Mania, Lush
Addiction, Melting Pot, Yogurt Lab and Monnalisa, many from the US and
Singapore, will invest about $300-500 million — all told to open roughly
3,000 stores, triggered by the country’s expanding economy, booming
consumption, urbanising population and growing middle class…
Over 50 global retailers to enter India in 6 months, likely to open
about 3,000 stores
3
Cabinet may clear Air India
selloff this week
The Union cabinet may clear the
decks for the government’s stake
sale in loss-making national carrier
Air India this week after choosing
between the option of an outright
sale and partial divestment…
4
The Department of Telecom (DoT)
anticipates that the revenue it
earns from the sector will fall by
38% in the current fiscal on
account of “severe financial
stress” and a “rapid decline in
earnings” of the operators…
Reliance Jio impact: Telecom
sector set to see Rs 17,000 cr
revenue disappear
5
Demonetisation gain for SBI as
market share rises on debit
card spends
SBI has grown its market share in
debit card spends over the last six
months even as its nearest rivals
have lost ground. The country’s
biggest lender reported debit card
transactions worth Rs 11,720.73
crore in April, notching up a share
of over 31%, data from the
Reserve Bank of India shows. In
October, the share was a shade
under 30%…
6
Bankers meet from Monday to
take action on mega loan
defaulters
Bankers are meeting from
Monday to finalise their next
course of action on six of the 12
bad loan accounts for immediate
referral to NCLT after the Reserve
Bank of India named the largest
defaulters to face bankruptcy
proceedings…
7
Road building: Deal flow ebbs
as assets turn unviable even as
Rs 25,000 cr investment on the
block
While at least a hundred road
projects entailing an investment of
Rs25,000 crore are on the block,
most of these may not be viable,
say industry experts.
Approximately half these ventures
have been executed in the PPP
(public- private partnership)
mode...
2
19 June 2017

Petronet LNG
BSE SENSEX
31,076
S&P CNX
9,578
16 June 2017
Update
| Sector:
Oil & Gas
CMP: INR427
For the long haul
TP: INR546(+23%)
Buy
Volume growth to continue for a long time
n
Though PLNG witnessed 5.8% volume CAGR over FY12-17, its volumes grew 25% in
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
Free float (%)
FY17, aided by favorable LNG prices and Dahej expansion. To better capture sporadic
PLNG IN
750
459 / 275
-8/-4/36
323.7
5.0
695
50.0
increases in offtake, as PLNG expands its Dahej facility and ramps up Kochi
utilization, we believe a 3-5 year view on its prospects is desirable.
n
We expect a volume CAGR of 10% over the next three years (FY17-20E) for PLNG. Low
LNG prices along with lack of domestic gas availability and huge unmet demand is
likely to result in sustained volume growth for PLNG for a long time to come.
n
Additional factors contributing to our Buy recommendation: (1) lack of competition,
(2) Dahej being the most economical facility, (3) firm contracts at Dahej and Kochi,
and (4) expansion of gas pipeline network across India.
Financials Snapshot (INR b)
2017 2018E 2019E
Y/E Mar
246.2 275.4 343.9
Net Sales
25.9
31.4
39.4
EBITDA
17.1
19.7
27.0
PAT
22.7
26.3
35.9
EPS (INR)
102.7
15.7
36.6
Gr. (%)
107.9 126.8 152.7
BV/Sh (INR)
23.2
22.4
25.7
RoE (%)
20.2
19.8
24.2
RoCE (%)
18.8
16.5
12.1
P/E (x)
4.0
3.4
2.8
P/BV (x)
Shareholding pattern (%)
As On
Mar-17 Dec-16 Mar-16
Promoter
50.0
50.0
50.0
DII
17.7
16.3
16.1
FII
19.4
21.7
21.6
Others
12.9
12.0
12.3
FII Includes depository receipts
Stock Performance (1-year)
Petronet LNG
Sensex - Rebased
450
400
350
300
250
LNG imports to rise; Petronet LNG to be biggest beneficiary
n
n
Amidst constrained domestic gas availability, LNG imports accounted for ~50%
of total gas sales in India in FY17 compared with 32% in FY14. Even in an
optimistic scenario of domestic gas production growing at a CAGR of 10.5%
over FY17-22, we expect LNG consumption to rise at a CAGR of 10%. PLNG is
best placed to benefit from this rise in demand.
While existing LNG terminals face their own problems, we do not see much
competition from upcoming LNG terminals. Dahej’s brownfield expansion
makes it the cheapest alternative for LNG imports.
Access to large parts of India; the cheapest alternative
n
n
PLNG’s Dahej terminal is already connected to HVJ, Dahej-Uran-Panvel-Dabhol,
Dabhol-Bangalore, and East-West pipelines.
Once the Jagdishpur-Haldia pipeline comes up, it will also have access beyond
Jagdishpur. Combined with the upcoming Mehsana-Bhatinda-Srinagar and
Mallavaram-Bhilwara pipelines, it would have access to large parts of India.
Valuation and recommendation
n
n
Dahej is already expanding to 17.5mmtpa in two years. Given the connectivity
of Dahej to a larger part of India through increased pipeline access, further
expansion to 20mmtpa looks imminent.
Assuming 3% terminal growth and WACC of 11%, we arrive at a one-year target
price of INR546 (upside of 23%) and a three-year price target of INR767.
Buy.
19 June 2017
3

E
CO
S
COPE
The Economy Observer
16 June 2017
CAD narrows to 0.7% of GDP in FY17
Gross domestic savings fall to 13-year low
n
India’s current account deficit (CAD) widened from USD0.3b (or 0.1% of GDP) in 4QFY16 to USD3.4b (or 0.6% of GDP) in
4QFY17, but slimmed from USD22.1b (or 1.1% of GDP) in FY16 to USD15.2b (or 0.7% of GDP) in FY17. Excluding gold,
current account had a surplus of USD5b (or 0.9% of GDP) in 4QFY17 and USD12.3b (or 0.5% of GDP) for FY17.
n
Financial inflows increased to USD10.4b in 4QFY17, primarily due to USD10.8b foreign portfolio investments (FPI),
which more than offset the lower foreign direct investments (FDI; fell from USD8.8b in 4QFY16 to USD5b in 4QFY17).
Due to lower CAD and higher capital inflows, India’s forex reserves increased by USD7.3b in 4QFY17, as against a
reduction of USD1.2b in the previous quarter and an accumulation of USD3.2b in 4QFY16.
More worryingly, total domestic savings (implied from the difference between investments and CAD) eased further to
28% of GDP in 4QFY17 – the lowest since 2003.
Going forward, we expect CAD to widen to 1.1% of GDP in FY18. As
explained earlier,
since net exports of goods &
services have added to real GDP growth in the past four years, wider deficit in FY18 will drag real GDP growth this year.
n
n
n
n
n
n
Excluding gold, India’
current account had a
surplus of USD5b (or 0.9%
of GDP) in 4QFY17 and
USD12.3b (or 0.5% of GDP)
for FY17
n
domestic savings (domestic
investments
minus
CAD)
declined further in 4QFY17
to 28%, the lowest in 13
years
n
n
Current account deficit widened in 4QFY17…:
India’s current account deficit
(CAD) widened from USD0.3b (0.1% of GDP) in 4QFY16 to USD3.4b (0.6% of
GDP) in 4QFY17
(Exhibit 1).
…but eased in the full-year, FY17:
However, CAD stood at USD15.2b (0.7% of
GDP) for the full-year, FY17, close to our estimate of 0.6%.
Merchandise deficit widened, partly offset by better surplus on services:
In
4QFY17, merchandise deficit stood at USD29.7b (4.9% of GDP), higher than
USD24.8b (4.5% of GDP) in 4QFY16. Almost the entire deterioration was on
account of gold imports, which widened from 1% of GDP to 1.6%. Excluding
gold, India’ current account had a surplus of USD5b (or 0.9% of GDP) in 4QFY17
and USD12.3b (or 0.5% of GDP) for FY17. This was so for the third consecutive
year. However, wider merchandise deficit was partly offset by higher surplus on
invisibles, which increased from USD24.4b in 4QFY16 to USD26.3b in 4QFY17.
Within invisibles, the surplus on both services and income account widened in
4QFY17 (in USD terms), in comparison to 4QFY16
(Exhibit 2).
Strong capital flows helped build foreign exchange reserves in 4QFY17:
While
CAD widened in 4QFY17, capital inflows increased from USD3.4b in 4QFY16 to
USD10.4b in 4QFY17. The surge in capital flows was entirely because of FPI of
USD10.8b, which more than offset the deceleration in FDI from USD8.8b in
4QFY16 to USD5b in 4QFY17. Consequently, India added USD7.2b in foreign
exchange reserves last quarter
(Exhibit 3).
As per our calculations, (implied) domestic savings (domestic investments
minus
CAD) declined further in 4QFY17 to 28%, the lowest in 13 years
(Exhibit 4).
Going forward, we expect CAD to widen to 1.1% of GDP in FY18.
As
explained
earlier,
since net exports of goods & services have added to real GDP growth in
the past four years, wider deficit in FY18 will drag real GDP growth this year.
19 June 2017
4

Sector Update | 16 June 2017
Cement
Price correction across most regions in May/June
North and south markets witness maximum drop in pricing
Average national price declines
~1% (Prices in INR/bag)
National Average Prices
n
n
n
May-17 saw price correction across majority of the markets from the highs of April due
to demand weakness and the government’s intervention to curb sharp price increases.
Price corrections have been the highest in the north, south and central markets due to
demand weakness in the central and south markets led by non-availability of sand.
Pricing in the eastern market has been largely stable, barring some correction in
Chhattisgarh. The west market has been the only exception, where prices increased as
late as the first week of May-17.
285 285 289 289 300 296
Price correction across most markets in May-17 due to demand slackness:
All-India
cement prices witnessed some decline in May-17 from the highs of April-17 due to
demand slackness and the government’s intervention toward end-April against the
steep price increases initiated in most regions. Both demand weakness and
government pressure resulted in price correction in most markets, with all-India
average price declining 1% MoM in May-2017.
North, south and central markets witness sharp decline:
After seeing a sustained
rise since February-17, cement prices in north fell by 2% MoM in May-17 and further
by ~1-2% in June-17. Prices in south, which had increased strongly in the first week
of April-17, fell by over 3% MoM in May-17, led by price declines in AP/Telangana.
The central market also saw a price decline of ~3% due to weak demand led by the
sand mining ban in UP. However, given demand weakness, prices in the north and
central markets have not corrected in tandem, as implementation of overloading
restriction since last 2-3 months led to curtailed supply, restricting price decline.
Pricing in east stable, but steep increases seen in west:
Cement prices in east, after
witnessing hikes in April 2017, were largely stable, barring some correction in select
regions such as Chhattisgarh (saw price decline of INR10-15/bag). Demand in east
has been extremely strong, recovering strongly post demonetization. Western
market was the only exception, where prices increased MoM in May-17, led by hikes
in Maharashtra and Gujarat. Demand in Maharashtra has been extremely robust
due to higher demand from infrastructure projects and pick-up in rural demand.
19 June 2017
5

Sector Update | 16 June 2017
Aviation Monthly
Domestic passenger growth
(YoY; %)
23.4
25.3
19.9
15.0 15.2
17.6
Domestic passenger growth for May 2017 at 17.6% YoY
Domestic load factor at 88.9%; IndiGo’s domestic ASK/RPK share highest
n
Domestic air passengers in India grew 17.6% YoY to 10.1m in May 2017 (v/s 15.2% YoY
in April 2017 and 20% YoY in 4QFY17). Passenger growth has been in double-digits
over the last 34 months.
n
While ASK growth in May was 14.9% YoY (v/s 16.9% YoY in 4QFY17 and 21% YoY in
3QFY17), RPK rose 18.1% YoY (v/s 19.3% YoY in 4QFY17 and 22.8% YoY in 3QFY17).
n
Highest-ever load factor at 88.9% in May 2017 (v/s 85.7% in 4QFY17 and 84.8% in
3QFY17).
Domestic air passengers up 17.6% YoY in May 2017
n
India's domestic air passengers grew 17.6% YoY to 10.1m in May 2017.
Passenger growth has been in double-digits over the last 34 months.
n
IndiGo’s passenger growth was 25.6% YoY in May 2017 (v/s 27% YoY in 4QFY17
and 43% YoY in 3QFY17).
n
SpiceJet’s domestic passenger volumes grew 16.6% YoY in May 2017 (v/s 19%
YoY in 4QFY17).
n
Go Air’s domestic passenger volumes grew 23.2% YoY in May 2017 (v/s 25% YoY
in 4QFY17).
n
Passenger volume growth for other airlines was as follows: Jet Airways: +8.9%
YoY (v/s +2% YoY in 4QFY17); Air India: flat YoY (v/s +5% YoY in 4QFY17).
Industry load factor (%)
88.7 88.3
87.2
85.5
88.9
81.8
IndiGo’s passenger market share remains highest at 41.3% in May 2017
n
IndiGo’s passenger market share was 41.3% in May 2017 (v/s 39.9% in 4QFY17
and 41.8% in 3QFY17).
n
Jet Airways’ market share remained below 20% for the 14th consecutive month
at 17.6%. Prior to that, it had market share of above 20% since July 2014.
n
Air India’s market share stood at 12.8% (v/s 13.3% in 4QFY17).
n
SpiceJet’s market share stood at 12.6% (v/s 13.1% in 4QFY17).
n
GoAir’s market share stood at 8.5%; seems to have stabilized in 8-9% range.
Passenger market share (%)
Apr-17
IndiGo
Jet
AI
SpiceJet
GoAir
Others
17.6
17.6
12.6
12.8
12.9
12.6
8.1
8.5
7.1
7.1
May-17
41.6
41.3
Domestic ASKs grow 14.9% YoY in May 2017 (v/s 16.9% YoY in 4QFY17)
n
IndiGo’s domestic ASK increased 16.2% YoY (v/s 23% YoY in 4QFY17); its
domestic ASK share was the highest at 41.5%.
n
SpiceJet’s domestic ASK grew 20.8% YoY (v/s 21.2% YoY in 4QFY17).
n
Domestic ASK grew 16.2% YoY (v/s 18.5% YoY in 4QFY17) for GoAir, and 9.2%
YoY (v/s 2.2% YoY in 4QFY17) for Jet Airways.
Domestic RPKs rise 18.1% YoY in May 2017 (v/s 19.3% YoY in 4QFY17)
n
IndiGo’s RPK grew 21.4% YoY (v/s 24.6% YoY in 4QFY17), with the highest
market share of 42.6% in May 2017.
n
SpiceJet’s domestic RPK grew 21.8% YoY (v/s 22.6% YoY in 4QFY17), with market
share of 11.8% in May 2017.
n
GoAir’s domestic RPK grew 21.9% YoY (v/s 22.4% YoY in 4QFY17), with market
share of 8.4% in May 2017.
n
Jet’s RPK growth stood at 12.9% YoY, followed by Air India (flat YoY).
6
19 June 2017

Highest-ever industry load factor at 88.9% (v/s 85.7% in 4QFY17)
n
SpiceJet’s load factor stood at 94.3% in May 2017 (v/s 92.9% in 4QFY17); has
had 90%+ load factor for last 25 months.
n
IndiGo’s load factor stood at 91.1% (v/s 86.9% in April, 86.3% in 4QFY17).
n
GoAir’s load factor stood at 93% (v/s 84.7% in April, 88.7% in 4QFY17).
n
Jet reported load factor at 85.1% (v/s 82.8% in April, 84.2% in 4QFY17).
n
Air India reported load factor at 80.7% (v/s 78.4% in April, 78.4% in 4QFY17).
Domestic passengers grew 17.6% YoY to 10.1m in May 2017
Total Domestic Passengers (millions)
India's domestic passengers
grew 17.6% YoY to 10.1m in
May 2017
Source: DGCA, MOSL
Double-digit passenger growth since August 2014
Domestic passenger growth (YoY %)
Domestic passenger volumes
grew 17.6% YoY in May 2017
Source: DGCA, MOSL
Airline-wise passenger growth (YoY; %)
Passenger growth
YoY (%)
80
Total
Air India
IndiGo
SpiceJet
Jet Airways
GoAir
Passenger volumes up ~26%
YoY for IndiGo in May 2017
40
0
-40
Source: DGCA, MOSL
19 June 2017
7

In conversation
1. Competition is good for consumers, it drives more efficiency:
HPCL; MK Surana, CMD
n
n
n
Competition is the order of the day, oil industry has operated in the competitive
environment among the PSU companies.
Have seen good recovery in the month of May on the back of pickup in 2W’s &
CV segment and in the anticipation of good monsoon.
Expecting at least 5% on diesel and almost 8-9% in motor spirit (MS). Expects
stable marketing margins.
2. GST impact: Discounts, destocking happening at dealers end,
says Voltas; Pradeep Bakshi, President and COO, Unitary
Products Business Group
n
n
n
n
n
May and June sales were dampened because of the uncertainty of what GST
rates would be and destocking is taking place. Therefore demand is muted.
Discounts offered by dealers is much higher than was earlier offered, while
some are offering even upto 40-50% discounts to clear stocks.
Does not expect margins for the company to be impacted due to these
discounts because they are happening at the dealers end and that too, usually,
for old stocks.
On the JV with Arcelik, looking to launch the consumer durable product around
Diwali time. The actual impact of the sales form that will be noticed only after
couple of years and not in months after the launch.
Market share around 20-21% for last many years. Currently not in a rush for
inorganic moves and would like to concentrate on earlier ventures.
3. RIL-BP plans to hike domestic gas production good for
consumers, India: Petronet LNG; RK Garg, Director-Finance
n
n
n
n
n
n
Natural gas consumption is around 6.5% which has to go up to 15%. Production
of domestic gas would help leverage more LNG import because domestic gas is
cheaper than imported gas.
Looking to expand the Dahej Unit from 15 mt to 17.5 mt by around 2019. The
current 15 mt is fully available for usage and the Dahej plant along is meeting
70-80 percent of the country’s imported gas requirement.
Execution of Kochi to Mangalore pipeline is good under Gail. By end of 2018 the
pipeline would be ready and the throughput at Kochi would increase. Discussion
on Mangalore to Bangalore still on
Current utilisation of Kochi is 13-15% as compared to 5% earlier. As of now there
are two major consumers for Kochi that is FACT and BPCL and utilisation
depends on their oftake.
If profits are good and there is sufficient cash on the books, then shareholders
would be duly rewarded via dividends but the decision will be taken by the
Board
Saudi Arabia- Qatar standoff is not impacting their volume inflows and the
entire volume is coming as planned.
19 June 2017
8

From the think tank
1. Finally a goods and services tax. but what lies ahead?
n
The goods and services tax (GST) will be rolled out on 1 July. Arguably the most
important economic reform since the liberalization of 1991, it will usher in a far-
reaching transformation of the indirect tax system that has been in operation
since independence. Getting here has been a long journey. The core concept of
the GST, a value-added tax (VAT) with crediting for taxes paid on inputs, was
introduced 36 years ago as the modified value-added tax (Modvat) in V.P.
Singh’s budget of 1981. Modvat was limited to Central excise because under the
Constitution, Parliament did not have the power to legislate on state taxes. The
gradual reform and harmonization of state sales taxes, preparing the ground for
a value-added sales tax at the state level took another 25 years. By 2005, most
states had reformed their sales taxes as state VATs.
2. Retreating on the monetary policy front
n
Last Wednesday, the Reserve Bank of India (RBI) held its ground when it came to
interest rates. But it was less certain in defending its abrupt policy shift from
accommodative to neutral. This has led to the RBI looking much less reassuring
in keeping the rates unchanged and much more vulnerable in sticking to the
shaky stance it took in its last policy. It is in a tight spot and if it gets a
respectable way out, it will possibly grab it with both hands. Let us take a step
back to understand the RBI’s delicate position. Back in January, when banks
were awash with liquidity, thanks to demonetisation, the rate cut was a given—
the question was how aggressive it would be. Bond markets were
magnanimously marking up the gilts to new highs, as they started factoring in a
sizeable slice in the rates by RBI (rates and bond prices are inversely related).
3. Demonetisation alone not to blame for slowing GVA
n
Few weeks back, Central Statistics Office (CSO) released provisional estimates of
GDP/GVA for Q4 FY17. This was one of the most awaited data releases in the
recent times. After all, it was seen as a report card on the economic impact—or
rather, the economic fallout—of demonetisation. As per the release, in Q4 FY17,
the Gross Value Added (GVA) grew by 5.6% in constant prices (2011-12 prices).
The same was 6.7% in Q3 FY17. Half of Q3 and almost all of Q4 was the period
when economists anticipated the maximum effect of demonetisation. Given
this, many intuitively attributed the decrease in GVA quarterly trend to
demonetisation. People argued that demonetisation halted
production/economic activities and that explained the GVA trends. While this is
quite understandable, in reality, it is not such a simple, straight-forward
correlation.
19 June 2017
9

4. Political correctness won’t fix UBER’s problems
n
There’s a disconnect between the way Uber, the ride-hailing company, is trying
to transform itself and what it really needs to fix to become a sustainable
business. Instead of reconsidering its business model and protecting itself
against a regulatory backlash, it has decided to go politically correct. As a result
of much highly public soul-searching, caused by accusations of mistreating
women and fostering a testosterone-fuelled internal culture, Uber now has no
chief financial officer, chief operating officer, chief business officer or chief
marketing officer, and its chief executive officer Travis Kalanick has gone on
indefinite leave. But it’s going to have a chief diversity officer. That may be the
first for a taxi company (which is ultimately what Uber is) and that’s fine; but it
won’t address the root problem.
International
5. Fed rate hike: from tantrum to lullaby
n
America’s Federal Reserve raised the federal discount rate by 25 basis points on
Wednesday. It would be an exaggeration to say that it produced not even a
ripple, but the impact of such a move has been markedly tepid, compared to the
virtual storms of volatility earlier hints at, leave alone preliminary moves
towards, ending the policy of extra-loose monetary policy used to produce till
recently. Yes, the dollar has strengthened against the yen, the euro and the
British pound marginally, and dollar-denominated commodity indices have been
hit. Stock markets in Asia and Europe moved down. But markets were more
perturbed by weak consumer prices and political uncertainty over investigations
into President Trump’s conduct than by the Fed’s announcement that it would
raise rates once again in the current year.
19 June 2017
10

Click excel icon
for detailed
valuation guide
Rs
Valuation snapshot
P/E (x)
P/B (x)
FY17 FY18E FY17 FY18E
24.4
17.1
18.7
31.4
37.5
17.7
32.2
30.4
19.7
23.5
19.1
20.0
24.2
24.2
14.8
32.9
21.7
21.8
23.9
32.3
21.0
24.8
18.8
17.4
25.2
20.4
30.5
29.2
10.3
15.9
22.7
8.8
10.1
10.7
9.1
9.2
8.8
14.4
14.5
6.2
12.0
29.9
22.0
19.2
11.8
43.3
32.4
13.7
17.4
8.3
27.0
5.5
4.5
4.8
6.7
8.5
3.1
16.2
7.6
3.6
3.8
7.5
3.2
2.8
6.1
2.7
10.9
4.9
2.2
3.2
2.4
2.4
5.0
2.1
1.3
4.5
0.8
4.8
4.5
1.1
3.7
3.2
1.1
0.6
0.8
0.5
1.0
0.4
0.8
1.3
0.5
0.9
8.0
4.0
4.0
1.8
14.6
6.5
3.9
3.6
2.6
3.0
4.7
3.9
4.3
5.8
7.5
2.7
11.6
6.3
3.1
3.4
6.3
2.9
2.5
5.2
2.2
8.6
4.2
2.1
2.8
2.2
2.2
4.3
2.0
1.3
3.9
0.8
4.1
4.0
1.0
3.1
2.9
1.0
0.6
0.7
0.5
0.9
0.4
0.8
1.2
0.5
0.9
6.5
3.4
3.4
1.6
12.1
5.9
3.5
3.1
2.3
2.9
ROE (%)
FY17 FY18E FY19E
20.3
23.3
25.3
16.2
15.8
16.9
40.3
20.8
12.3
14.0
35.7
14.2
6.4
20.3
9.8
25.6
17.1
6.9
10.9
8.9
9.9
17.9
10.1
7.2
16.0
-27.0
13.8
12.3
9.4
18.9
11.4
4.1
-6.7
4.2
1.4
10.1
-8.4
3.6
-0.2
2.7
0.9
21.7
15.1
18.1
14.4
30.4
19.3
25.5
19.4
23.9
6.4
20.8
24.4
24.1
19.9
21.2
16.3
41.9
22.6
16.8
14.5
35.9
14.2
10.8
21.2
16.5
29.2
19.3
9.9
12.4
7.1
10.9
18.2
9.1
7.4
16.5
4.0
14.5
14.6
10.6
17.9
12.9
12.3
6.1
6.8
5.8
10.6
4.6
5.6
8.9
8.1
7.4
24.0
16.7
19.0
14.5
30.6
18.3
27.0
19.3
29.0
10.9
21.2
26.9
25.6
22.5
22.2
17.9
38.5
23.1
17.9
15.8
31.3
14.4
11.5
22.3
27.8
35.9
22.8
15.7
14.0
10.1
12.5
19.0
9.8
9.0
17.3
7.0
15.7
17.3
12.2
19.4
14.5
14.5
9.0
9.4
7.3
11.1
5.4
7.5
10.7
10.5
9.3
26.2
19.5
19.9
15.2
30.9
17.4
29.6
19.0
32.2
12.9
Company
Reco
Automobiles
Amara Raja
Buy
Ashok Ley.
Buy
Bajaj Auto
Buy
Bharat Forge
Buy
Bosch
Neutral
CEAT
Buy
Eicher Mot.
Buy
Endurance Tech. Buy
Escorts
Neutral
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
Under Review
South Indian
Buy
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
Cholaman.Inv.&FnBuy
Dewan Hsg.
Buy
GRUH Fin.
Neutral
HDFC
Buy
Indiabulls Hsg
Buy
LIC Hsg Fin
Neutral
Manappuram
Not Rated
M&M Fin.
Buy
CMP
(INR)
TP % Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
24
24
22
5
-5
-6
6
1
0
24
-4
15
11
39
6
28.0
4.6
132.3
26.2
473.1
93.3
613.8
23.5
23.2
8.2
169.1
54.3
5.4
248.6
19.8
11.7
840
1,044
94
117
2,809 3,422
1,183 1,242
24,425 23,287
1,861 1,741
28,723 30,402
936
948
710
711
222
274
3,778 3,622
1,389 1,603
239
-
7,266 8,060
456
635
550
581
34.5
41.8
30.0
5.5
7.1
20.5
150.4 178.2 21.2
37.7
49.7
45.2
650.7 776.2 51.6
104.9 133.9 19.9
892.0 1,135.1 46.8
30.8
37.9
39.9
35.9
44.4
30.6
9.5
11.8
27.2
198.1 201.2 22.3
69.6
81.7
25.6
9.9
11.8
44.6
300.0 370.9 29.2
30.8
65.8
23.0
16.7
26.7
46.8
28.3
23.4
8.8
4.8
5.8
67.1
16.8
3.3
59.4
4.4
32.3
17.6
2.9
90.5
41.2
11.2
7.5
7.3
79.4
19.2
4.3
72.0
8.0
40.5
23.8
3.6
114.0
33.2
30.0
33.1
25.1
29.4
18.8
19.1
29.9
NM
36.7
43.3
13.5
19.8
28.1
28.1
NM
18.7
38.5
10.5
NM
23.7
944.8
19.8
100.4
41.9
33.9
23.7
15.3
54.6
35.0
16.4
20.3
11.3
49.2
510
210
156
121
1,668
317
57
1,500
90
986
515
30
1,442
525
170
210
125
1,790
365
62
1,700
89
1,050
-
31
2,110
3
-19
34
3
7
15
8
13
-1
7
5
46
15.4
7.0
4.7
4.8
56.8
16.8
3.0
50.1
-31.3
26.8
11.9
2.2
73.0
168
138
352
59
307
150
147
286
151
217
147
380
49
360
150
184
375
174
29
6
8
-16
17
0
25
31
15
6.0
-14.8
18.8
1.5
29.3
-31.6
6.2
0.3
7.6
19.0
13.7
33.0
6.4
33.3
17.1
10.3
19.7
24.6
24.9
22.0
48.9
8.6
38.1
21.4
14.5
25.9
34.5
1,407
713
1,090
454
445
1,639
1,130
778
93
349
1,550
769
1,250
559
421
1,797
1,227
723
-
400
10
8
15
23
-5
10
9
-7
15
33.6
21.0
46.0
29.6
8.1
46.8
69.0
38.2
8.2
7.1
47.0
32.4
56.7
38.6
10.3
50.7
82.2
44.6
11.1
12.9
63.6
45.3
70.6
45.5
12.5
55.9
101.6
51.2
14.0
16.4
19 June 2017
11

Click excel icon
for detailed
valuation guide
CMP
(INR)
472
132
891
187
2,441
983
TP % Upside
(INR) Downside
465
-1
117
-11
900
1
134
-28
2,689
1,269
10
29
EPS (INR)
FY18E
34.5
27.2
36.0
35.0
130.4
77.4
Valuation snapshot
FY19E
40.0
30.2
43.3
40.4
164.7
98.6
P/E (x)
P/B (x)
FY17 FY18E FY17 FY18E
15.9 13.7
3.0
2.6
5.1
4.8
0.9
0.8
30.6 24.8
4.9
4.2
6.0
5.4
1.1
1.0
28.9
17.7
19.1
76.7
24.5
68.4
52.1
47.0
20.2
34.7
58.9
51.3
11.3
21.4
27.3
23.6
73.9
39.9
29.6
31.3
24.6
31.6
34.5
48.5
48.5
31.4
63.7
16.5
39.1
30.0
71.2
25.4
NM
337.2
46.2
42.8
36.1
54.5
48.4
51.6
39.9
42.0
49.4
34.3
55.6
36.5
33.4
18.7
12.7
16.4
60.3
23.6
31.7
37.4
39.5
36.2
31.9
37.8
40.6
NM
18.7
25.4
18.3
54.2
37.4
21.3
29.9
20.4
30.5
30.8
35.8
33.2
22.5
37.0
12.9
23.6
21.8
43.4
22.3
33.1
31.6
37.0
33.9
27.0
49.5
43.5
42.7
37.4
38.1
42.8
31.6
47.9
32.0
41.9
3.3
2.0
3.3
9.8
5.0
1.0
8.5
25.6
1.2
6.8
8.4
9.4
1.5
4.1
3.2
2.0
6.9
7.3
-1.7
4.3
3.9
4.9
3.9
2.4
3.6
2.2
4.4
1.8
1.3
4.0
4.1
4.5
3.1
5.9
8.8
4.9
3.5
14.4
15.9
23.4
10.5
14.4
12.0
7.2
35.4
8.2
6.3
2.8
1.8
2.9
8.4
3.9
1.0
7.9
18.4
1.2
6.3
7.4
8.3
1.5
3.5
3.1
1.8
5.9
6.3
-1.9
3.9
3.4
4.4
3.6
2.4
3.7
2.0
4.0
1.6
1.3
3.4
3.8
3.9
2.9
5.1
7.2
4.4
3.2
13.8
14.7
22.1
9.0
11.6
9.3
7.1
34.3
8.1
6.4
FY17
19.7
17.9
17.4
19.9
11.8
11.7
17.2
12.7
20.6
1.5
18.0
76.4
6.2
21.2
12.4
18.2
14.9
21.2
12.6
8.6
9.3
19.8
NM
14.3
16.3
18.0
11.2
5.0
7.5
7.5
7.2
11.5
3.4
14.4
6.0
19.2
-3.2
1.8
20.2
12.0
9.7
28.5
36.9
50.4
28.4
35.8
24.6
22.2
65.6
23.5
21.1
ROE (%)
FY18E
20.2
17.0
18.2
19.1
16.2
14.5
17.7
13.9
16.5
3.3
21.9
54.2
3.4
20.5
20.7
20.4
-3.3
20.3
12.5
10.0
11.0
18.1
-8.8
13.6
17.7
15.1
11.7
6.7
11.0
9.2
11.3
13.1
5.5
17.0
9.2
18.6
9.0
17.2
21.5
13.6
11.8
28.6
35.2
53.2
26.0
33.8
24.5
22.6
72.8
25.6
15.1
FY19E
20.6
16.8
18.5
19.1
17.8
16.3
17.9
15.8
16.8
3.6
30.1
50.3
4.2
23.2
21.5
21.4
15.1
21.2
13.6
11.8
13.7
19.5
-11.0
12.9
17.5
15.3
12.9
7.1
14.2
12.2
13.1
15.1
7.2
18.6
14.7
19.1
12.3
22.6
22.6
15.7
13.7
30.6
37.2
60.3
26.3
32.2
23.0
23.0
82.5
28.9
18.4
Company
Reco
Muthoot Fin
Buy
PFC
Neutral
Repco Home
Buy
REC
Neutral
Shriram City
Buy
Union
STF
Buy
Aggregate
Capital Goods
ABB
Sell
Bharat Elec.
Buy
BHEL
Sell
Blue Star
Neutral
CG Cons. Elec.
Buy
CG Power & Indu. Sell
Cummins
Neutral
GE T&D
Neutral
Havells
Neutral
Inox Wind
Under Review
K E C Intl
Neutral
L&T
Buy
Pennar Eng.
Not Rated
Siemens
Neutral
Solar Ind
Neutral
Suzlon Energy
Not Rated
Thermax
Sell
Va Tech Wab.
Buy
Voltas
Sell
Aggregate
Cement
Ambuja Cem.
Buy
ACC
Neutral
Birla Corp.
Buy
Dalmia Bharat
Buy
Grasim Inds.
Neutral
India Cem
Neutral
J K Cements
Buy
JK Lakshmi Ce
Buy
Ramco Cem
Buy
Orient Cem
Buy
Prism Cem
Buy
Shree Cem
Buy
Ultratech
Buy
Aggregate
Consumer
Asian Paints
Neutral
Britannia
Buy
Colgate
Buy
Dabur
Neutral
Emami
Buy
Godrej Cons.
Neutral
GSK Cons.
Sell
HUL
Buy
ITC
Buy
Jyothy Lab
Neutral
FY17
29.7
25.7
29.1
31.4
84.3
55.6
1,511
170
139
671
220
83
920
338
490
144
254
1,727
137
1,316
822
19
966
713
489
1,200
200
100
610
240
65
950
320
480
-
250
2,000
-
1,355
825
-
850
800
400
-21
18
-28
-9
9
-22
3
-5
-2
-2
16
3
0
-12
12
-18
19.7
6.9
2.0
12.9
4.7
4.1
26.5
5.7
9.6
12.8
11.9
63.3
5.8
17.8
20.6
0.6
30.8
28.9
15.5
25.1
7.2
4.4
17.9
5.6
2.3
28.8
8.9
12.1
-3.2
13.6
68.0
7.5
24.3
22.0
0.9
32.3
34.9
16.0
32.2
8.1
5.0
26.6
6.7
4.5
35.5
10.6
14.5
15.5
16.8
78.3
10.0
33.3
27.5
1.0
34.0
39.8
18.1
237
283
1,636 1,521
923
998
2,469 3,162
1,119 1,234
220
210
1,012 1,322
495
550
693
823
149
185
117
138
17,773 23,316
4,116 4,928
19
-7
8
28
10
-5
31
11
19
24
18
31
20
4.9
33.7
29.4
38.8
67.9
5.6
33.7
7.0
27.3
-1.6
0.3
384.4
96.1
6.6
49.2
40.9
66.7
86.9
9.3
46.4
11.4
31.1
4.5
3.7
480.7
121.4
7.2
63.6
58.9
87.1
114.5
12.9
59.5
20.5
37.5
6.8
5.8
621.0
159.1
1,145
3,567
1,095
289
1,113
1,868
5,360
1,092
306
375
1,210
4,050
1,180
295
1,250
1,950
4,380
1,215
355
390
6
14
8
2
12
4
-18
11
16
4
21.0
73.7
21.2
7.2
26.5
37.8
156.1
19.6
8.4
11.2
23.1
82.1
25.7
7.7
29.2
43.6
169.7
22.8
9.6
8.9
27.4
101.3
31.1
9.1
34.7
50.0
185.5
27.0
11.5
11.0
19 June 2017
12

Click excel icon
for detailed
valuation guide
CMP
TP % Upside
(INR)
(INR) Downside
313
335
7
6,759 5,715
-15
16,579 18,000
9
216
245
13
815
762
-7
7,902 8,760
11
785
830
6
2,284 2,415
6
EPS (INR)
FY18E
6.9
118.6
313.9
7.4
18.4
155.8
9.7
37.4
Valuation snapshot
FY19E
8.4
139.5
400.0
12.3
21.2
181.6
14.7
51.8
P/E (x)
P/B (x)
FY17 FY18E FY17 FY18E
49.8 45.0 17.4 14.8
57.3 57.0 21.6 19.9
69.4 52.8 27.8 22.0
60.0 29.1
2.8
2.5
48.7 44.2 12.6 10.3
54.5 50.7 45.1 35.9
90.3 81.0
9.0
8.3
85.4 61.1 17.1 11.8
46.1 40.7 12.8 11.9
24.2
24.8
26.6
16.6
16.6
37.0
33.8
16.2
36.9
18.4
16.2
19.5
71.7
29.4
19.1
31.4
20.2
35.1
21.9
24.0
17.6
41.0
29.9
38.8
14.9
18.3
28.5
81.2
18.3
NM
10.5
11.0
17.1
75.9
NM
33.8
22.0
40.8
12.1
12.2
NM
20.1
23.4
23.4
14.8
15.4
29.0
26.9
17.9
25.0
90.3
14.2
17.4
47.4
21.1
18.8
30.9
20.8
28.3
20.2
22.2
14.3
32.3
27.6
22.7
7.9
14.7
23.6
39.0
15.5
NM
10.2
10.3
15.2
43.2
NM
28.4
31.1
29.1
8.6
11.2
NM
5.2
5.3
8.8
4.1
2.3
8.4
3.4
3.6
3.6
2.0
4.0
3.3
15.4
2.4
3.9
5.4
3.5
7.1
5.1
4.2
2.6
18.2
3.1
2.3
2.0
2.8
3.5
17.4
4.3
1.5
1.8
0.7
2.5
7.5
4.1
8.4
8.1
5.8
1.5
3.3
0.4
4.3
4.5
6.7
3.3
2.0
6.9
3.1
3.3
3.0
1.7
3.2
2.3
18.8
2.2
3.3
5.0
3.3
5.8
4.4
3.7
2.3
13.8
3.0
2.2
1.8
2.4
3.2
12.0
3.8
1.7
1.6
0.7
2.5
6.5
4.5
7.8
6.8
5.3
1.2
2.8
0.4
FY17
36.7
39.0
40.0
5.9
28.2
45.3
10.4
21.3
27.7
23.1
23.4
37.7
28.3
13.6
24.8
10.2
23.5
9.6
11.3
24.7
20.0
21.5
8.6
22.0
17.1
18.5
22.2
25.3
17.5
12.6
50.5
10.8
5.9
12.4
16.7
12.2
24.1
25.5
-12.0
19.3
7.1
17.6
10.4
-23.5
25.0
23.7
14.3
14.0
24.4
-7.9
ROE (%)
FY18E
35.5
36.4
41.6
9.1
25.6
78.9
10.7
19.3
29.2
23.6
20.8
32.3
24.8
13.3
26.1
11.5
19.2
13.3
2.0
22.4
16.4
39.7
11.0
18.9
16.3
16.3
22.5
23.5
16.6
17.2
48.6
11.1
9.9
19.4
17.8
13.7
36.5
26.2
-5.3
16.6
6.9
16.3
16.1
-7.8
27.3
23.8
18.1
15.6
27.2
-5.0
FY19E
38.1
39.0
42.8
13.4
24.0
74.0
14.6
19.7
30.7
24.1
21.0
30.0
22.5
16.1
27.1
12.8
19.2
15.1
5.3
21.3
17.6
54.4
13.2
19.7
19.3
17.9
20.7
24.6
17.6
17.8
46.8
11.7
11.7
25.4
18.6
15.0
44.1
27.6
0.7
15.6
6.6
17.3
20.5
1.5
31.9
23.8
20.6
15.1
25.4
-0.8
Company
Marico
Nestle
Page Inds
Parag Milk
Pidilite Ind.
P&G Hygiene
United Brew
United Spirits
Aggregate
Healthcare
Alembic Phar
Alkem Lab
Ajanta Pharma
Aurobindo
Biocon
Cadila
Cipla
Divis Lab
Dr Reddy’s
Fortis Health
Glenmark
Granules
GSK Pharma
IPCA Labs
Lupin
Sanofi India
Sun Pharma
Syngene Intl
Torrent Pharma
Aggregate
Logistics
Allcargo Logistics
Blue Dart
Concor
Gateway
Distriparks
Gati
Transport Corp.
Aggregate
Media
Dish TV
D B Corp
Den Net.
Hind. Media
HT Media
Jagran Prak.
PVR
Siti Net.
Sun TV
Zee Ent.
Aggregate
Metals
Hindalco
Hind. Zinc
JSPL
Reco
Neutral
Sell
Buy
Neutral
Neutral
Buy
Neutral
Neutral
FY17
6.3
118.0
238.7
3.6
16.7
144.9
8.7
26.7
Neutral
Neutral
Buy
Buy
Sell
Buy
Neutral
Neutral
Neutral
Buy
Neutral
Buy
Neutral
Neutral
Buy
Buy
Buy
Not Rated
Buy
522
1,876
1,552
653
338
525
537
642
2,677
191
638
142
2,463
472
1,131
4,054
529
457
1,210
640
1,900
2,028
750
300
510
500
600
2,625
240
800
200
2,700
480
1,475
4,850
650
-
1,450
22
1
31
15
-11
-3
-7
-7
-2
26
25
41
10
2
30
20
23
20
21.6
75.7
58.4
39.3
20.4
14.2
15.9
39.7
72.6
10.3
39.3
7.3
34.4
16.1
59.2
129.1
26.1
13.0
55.2
26.0
80.0
66.4
44.1
22.0
18.1
20.0
35.8
107.1
2.1
45.0
8.1
51.9
22.4
60.2
131.0
25.4
16.1
59.8
32.1
94.9
79.9
50.2
29.9
23.2
25.0
39.8
144.5
6.1
53.5
11.4
60.1
29.9
73.7
173.4
30.8
18.0
73.2
Buy
Not Rated
Neutral
Buy
Not Rated
Not Rated
173
4,202
1,136
264
125
310
228
-
1,162
310
-
-
32
2
17
9.8
102.5
38.0
6.8
8.4
16.9
12.2
129.9
41.2
11.6
15.9
21.0
14.3
163.2
45.8
14.3
23.9
25.9
Buy
Buy
Neutral
Buy
Neutral
Buy
Buy
Neutral
Neutral
Buy
80
374
83
276
81
184
1,559
29
840
508
106
460
90
360
85
225
1,666
36
860
600
32
23
8
30
5
22
7
22
2
18
1.0
20.4
-8.6
26.4
7.4
10.8
20.5
-1.8
24.9
23.1
2.1
24.1
-2.7
27.1
7.9
12.2
36.1
-0.5
29.5
16.4
3.8
28.7
0.3
29.9
8.3
14.0
54.7
0.1
38.4
19.5
Buy
Sell
Buy
195
241
125
250
235
184
28
-2
48
16.2
19.7
-20.9
22.6
21.5
-16.0
25.9
23.7
-2.5
19 June 2017
13

Click excel icon
for detailed
valuation guide
CMP
Reco
(INR)
Buy
195
Neutral
65
Under Review 112
Sell
57
Neutral
237
Sell
502
TP % Upside
(INR) Downside
241
24
65
0
-
30
-47
225
-5
451
-10
EPS (INR)
FY18E
20.1
3.6
12.0
-12.6
24.5
39.5
Valuation snapshot
FY19E
22.6
4.0
12.7
0.4
27.4
45.7
P/E (x)
P/B (x)
FY17 FY18E FY17 FY18E
13.2
9.7
2.1
1.8
17.7 18.2
1.2
1.2
11.3
9.3
1.6
1.5
NM
NM
0.6
0.7
15.6
9.6
1.5
1.4
13.6 12.7
1.5
1.4
17.0 13.8
1.4
1.3
9.3
16.7
39.0
19.2
8.7
9.9
24.6
10.9
15.3
10.2
18.8
13.0
11.8
93.7
57.1
60.3
16.5
14.0
18.3
14.9
10.4
14.5
20.7
15.5
13.3
17.7
27.5
18.0
12.6
15.1
15.8
16.3
32.8
25.2
NM
28.3
35.3
17.1
17.0
16.3
12.3
14.7
15.1
10.4
13.8
20.7
15.2
11.6
9.7
22.7
9.9
8.5
8.1
16.5
11.4
10.8
77.1
50.2
52.7
13.2
13.6
16.3
14.5
9.2
13.4
16.9
14.4
13.4
15.2
22.7
17.2
12.1
14.7
13.3
15.9
58.0
21.4
NM
40.7
164.9
14.0
12.0
29.8
12.0
11.9
11.5
2.9
1.7
6.7
2.2
2.6
1.9
5.1
2.2
0.8
1.0
4.0
1.4
1.6
7.7
10.8
10.4
2.7
3.5
4.5
3.1
1.6
5.0
3.4
2.1
2.1
2.7
8.6
5.6
2.1
2.4
2.4
3.8
2.2
4.5
1.1
13.2
2.4
6.5
2.0
1.0
1.4
2.2
1.8
2.4
1.6
5.3
2.0
2.3
2.0
4.3
1.9
0.8
0.9
3.4
1.3
1.5
7.2
9.6
9.3
2.3
3.5
3.9
2.8
1.3
3.9
3.0
2.4
1.9
2.6
6.9
5.8
1.9
2.2
2.1
3.6
2.1
3.9
1.4
10.0
2.4
6.5
1.8
1.0
1.3
1.9
1.6
FY17
17.3
7.2
12.4
-6.7
9.7
15.4
8.0
32.4
10.2
17.8
11.9
32.4
22.3
21.0
24.8
5.7
10.4
23.6
11.9
13.2
8.2
20.6
17.2
16.2
27.5
26.5
23.3
14.3
40.4
16.8
13.2
16.1
17.0
37.1
33.5
18.4
16.9
16.3
23.2
6.7
16.2
-1.6
126.2
6.9
37.8
11.4
6.7
11.5
16.2
11.2
ROE (%)
FY18E
19.7
6.7
14.9
-15.2
14.8
11.4
9.4
25.1
11.7
28.5
13.7
21.2
20.2
20.6
20.5
9.3
11.7
22.1
11.8
13.4
9.3
20.2
17.6
17.8
25.4
25.3
21.4
15.6
32.8
18.9
14.0
14.8
18.1
33.7
32.4
16.7
15.5
17.2
22.6
3.7
19.4
-20.8
27.9
1.5
46.2
15.5
3.3
10.9
17.5
14.6
FY19E
18.8
7.3
15.7
0.5
15.3
12.1
11.8
23.3
12.5
27.5
14.6
18.7
19.9
19.5
18.4
9.6
13.0
25.2
11.2
13.4
12.6
20.9
18.5
17.9
26.0
23.5
21.2
15.2
28.3
20.5
15.7
14.7
20.3
32.3
32.3
17.0
15.7
17.4
22.0
6.4
19.1
-27.4
39.1
3.9
52.1
15.0
2.8
12.3
17.8
13.6
Company
JSW Steel
Nalco
NMDC
SAIL
Vedanta
Tata Steel
Aggregate
Oil & Gas
BPCL
GAIL
Gujarat Gas
Gujarat St. Pet.
HPCL
IOC
IGL
MRPL
Oil India
ONGC
PLNG
Reliance Ind.
Aggregate
Retail
Jubilant Food
Titan Co.
Aggregate
Technology
Cyient
HCL Tech.
Hexaware
Infosys
KPIT Tech
L&T Infotech
Mindtree
Mphasis
NIIT Tech
Persistent Sys
Tata Elxsi
TCS
Tech Mah
Wipro
Zensar Tech
Aggregate
Telecom
Bharti Airtel
Bharti Infratel
Idea Cellular
Tata Comm
Aggregate
Utiltites
Coal India
CESC
JSW Energy
NTPC
Power Grid
Tata Power
FY17
14.8
3.7
10.0
-6.2
15.1
37.0
Neutral
Sell
Sell
Neutral
Buy
Neutral
Neutral
Neutral
Buy
Buy
Buy
Neutral
674
378
798
170
530
405
1,062
127
295
167
427
1,388
779
357
699
171
632
457
1,067
124
363
229
547
1,264
16
-6
-12
1
19
13
0
-2
23
37
28
-9
72.5
22.6
20.4
8.8
61.0
41.0
43.1
11.7
19.3
16.4
22.7
106.6
64.5
27.4
38.5
11.2
45.6
41.9
46.7
12.8
34.7
20.6
25.9
121.7
70.3
31.6
46.6
13.4
45.8
43.3
51.8
13.3
37.4
23.9
35.1
127.8
Sell
Neutral
937
516
680
505
-27
-2
10.0
9.0
12.2
10.3
17.9
12.1
Buy
Buy
Neutral
Buy
Neutral
Buy
Neutral
Neutral
Neutral
Buy
Buy
Neutral
Buy
Neutral
Buy
506
839
251
941
124
803
515
603
568
667
1,545
2,397
391
255
870
620
960
235
1,200
150
850
475
600
470
700
1,607
2,400
500
250
1,020
23
14
-6
28
21
6
-8
0
-17
5
4
0
28
-2
17
30.6
59.8
13.7
62.9
11.9
55.5
24.9
38.9
42.8
37.7
56.3
133.4
30.9
16.9
54.9
38.3
61.9
15.4
64.7
13.4
59.7
30.5
41.7
42.5
43.9
68.0
139.7
32.3
17.3
65.5
44.2
67.6
16.7
71.1
15.2
65.0
36.5
45.0
46.1
51.4
80.4
149.6
36.9
19.1
76.0
Buy
Buy
Buy
Buy
365
375
78
737
430
440
110
811
18
17
41
10
11.1
14.9
-1.1
26.0
6.3
17.5
-12.9
18.1
11.5
19.9
-13.6
36.0
Buy
Buy
Buy
Buy
Buy
Sell
255
882
63
160
210
78
316
1,040
88
198
242
67
24
18
40
24
16
-14
14.9
51.9
3.9
13.0
14.2
5.2
18.3
73.4
2.1
13.4
17.6
6.7
20.7
80.6
1.8
16.2
20.5
7.0
19 June 2017
14

Click excel icon
for detailed
valuation guide
CMP
(INR)
TP % Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
Valuation snapshot
P/E (x)
P/B (x)
FY17 FY18E FY17 FY18E
14.7 12.8
2.2
2.1
30.6
40.1
30.1
35.3
27.2
39.7
37.6
26.5
26.2
14.0
64.4
84.8
19.2
23.3
34.5
15.8
61.7
44.6
40.3
24.0
24.4
40.8
19.0
40.2
47.6
62.4
50.7
53.6
22.8
34.6
28.2
31.2
23.7
31.7
22.5
23.6
18.4
12.5
49.9
35.2
14.0
22.0
22.3
13.3
37.3
36.2
33.0
19.8
24.3
28.4
18.3
30.3
36.6
48.4
40.4
31.4
2.7
5.3
34.1
9.5
4.7
4.2
5.2
8.6
21.6
4.2
6.2
4.9
1.6
3.1
4.5
4.3
3.9
4.2
12.3
6.0
6.9
3.9
3.0
5.2
25.9
9.9
12.1
4.9
2.5
4.7
30.5
7.9
4.3
2.8
4.2
6.9
19.1
3.1
5.7
4.3
1.6
2.8
4.9
3.4
3.6
3.9
11.4
5.1
5.6
3.5
2.7
4.6
22.0
8.9
9.9
4.4
ROE (%)
FY17 FY18E FY19E
15.3
16.3
17.4
10.3
13.9
115.2
31.1
18.2
11.1
15.1
37.7
86.2
34.8
10.2
5.9
8.6
14.8
13.6
29.9
7.3
9.9
30.4
26.8
32.8
9.8
16.6
13.7
56.8
16.5
27.4
9.5
11.5
14.5
114.1
27.7
18.9
11.3
20.7
32.3
110.2
28.8
11.9
12.5
11.7
13.4
20.5
28.7
8.8
11.1
35.9
27.8
25.4
13.0
15.1
16.1
65.0
19.4
26.9
14.8
14.7
15.9
106.8
29.6
21.7
11.5
24.3
31.6
129.8
25.9
12.3
16.2
14.8
13.7
25.4
27.7
13.1
14.6
39.6
28.2
23.8
16.4
17.0
18.2
66.3
22.2
28.8
17.5
Company
Aggregate
Others
Arvind
Bata India
Castrol India
Century Ply.
Coromandel Intl
Delta Corp
Dynamatic Tech
Eveready Inds.
Interglobe
Indo Count
Info Edge
Inox Leisure
Jain Irrigation
Just Dial
Kaveri Seed
Kitex Garm.
Manpasand
MCX
Monsanto
Navneet
Education
PI Inds.
Piramal Enterp.
SRF
S H Kelkar
Symphony
TTK Prestige
V-Guard
Wonderla
Reco
Neutral
Under Review
Buy
Neutral
Under Review
Buy
Buy
Buy
Neutral
Buy
Buy
Sell
Under Review
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Sell
Neutral
Neutral
Buy
379
539
411
307
434
167
2,544
341
1,208
182
1,010
283
106
407
657
411
783
1,107
2,942
186
814
2,958
1,631
291
1,285
6,672
181
375
382
-
531
323
-
229
3,334
368
1,234
229
1,050
240
-
465
653
551
900
1,300
2,841
226
952
3,044
1,816
367
1,288
5,281
167
393
1
29
5
37
31
8
2
26
4
-15
14
-1
34
15
17
-3
21
17
3
11
26
0
-21
-8
5
12.4
13.5
13.6
8.7
16.0
4.2
67.6
12.9
46.0
13.0
15.7
3.3
5.5
17.5
19.1
26.0
12.7
24.8
72.9
7.8
33.4
72.6
85.9
7.2
27.0
106.9
3.6
7.0
16.6
15.6
14.6
9.8
18.3
5.3
112.9
14.4
65.6
14.6
20.3
8.0
7.6
18.5
29.5
31.0
21.0
30.5
89.3
9.4
33.4
104.1
89.0
9.6
35.1
137.7
4.5
11.9
23.6
19.3
15.2
12.9
23.6
7.1
166.7
17.5
88.2
17.6
22.9
12.0
10.0
21.1
36.3
36.7
30.0
42.9
109.3
11.3
38.1
144.6
111.5
12.2
42.9
176.0
6.0
16.0
19 June 2017
15

MOSL Universe stock performance
Company
Automobiles
Amara Raja
Ashok Ley.
Bajaj Auto
Bharat Forge
Bosch
CEAT
Eicher Mot.
Endurance Tech.
Escorts
Exide Ind
Hero Moto
M&M
Mahindra CIE
Maruti Suzuki
Tata Motors
TVS Motor
Banks - Private
Axis Bank
DCB Bank
Equitas Hold.
Federal Bank
HDFC Bank
ICICI Bank
IDFC Bank
IndusInd
J&K Bank
Kotak Mah. Bk
RBL Bank
South Indian
Yes Bank
Banks - PSU
BOB
BOI
Canara
IDBI Bk
Indian Bk
OBC
PNB
SBI
Union Bk
NBFCs
Bajaj Fin.
Bharat Fin.
Cholaman.Inv.&Fn
Dewan Hsg.
GRUH Fin.
HDFC
Indiabulls Hsg
LIC Hsg Fin
Manappuram
M&M Fin.
Muthoot Fin
PFC
Repco Home
REC
STF
Shriram City Union
1 Day (%)
0.3
-0.2
-0.2
1.6
0.5
-0.6
-0.3
1.7
0.1
0.4
0.0
0.0
-1.3
-0.6
1.6
1.5
0.4
0.3
2.9
1.5
0.4
-0.1
-0.9
0.4
0.1
2.2
0.1
1.0
-0.3
-0.9
-0.7
0.0
-0.9
-0.8
-0.9
-0.1
0.6
-1.1
0.4
1.4
-2.1
-1.9
-0.2
0.1
-1.8
0.1
-0.2
-0.5
-0.3
1.1
-1.1
0.8
1.0
1.0
1M (%)
-9.2
8.7
-7.1
5.2
-0.7
8.8
-2.0
17.1
8.2
-9.4
4.4
1.6
-3.3
4.5
4.2
3.3
1.7
9.1
-5.2
4.9
7.0
4.6
-9.5
4.6
1.1
2.5
-8.7
16.8
-2.8
-13.2
-26.4
-5.7
-23.1
-14.9
-7.5
-15.5
-6.9
-16.1
4.7
-9.9
7.2
6.8
6.3
4.6
7.3
11.9
-1.6
3.1
19.7
-18.1
16.2
-13.7
-2.5
6.7
12M (%)
-2.8
-5.3
9.5
61.5
12.1
117.5
52.9
296.4
38.7
25.0
3.3
24.2
77.9
0.3
88.7
-2.6
112.6
-9.1
109.0
43.5
32.1
22.5
36.3
31.2
31.1
61.7
36.0
10.7
48.0
78.6
-17.0
153.8
56.5
59.2
32.5
19.9
85.6
5.7
18.3
124.5
62.7
36.4
61.7
65.7
56.7
11.5
77.1
62.2
21.2
129.8
-15.2
46.5
Company
Capital Goods
ABB
Bharat Elec.
BHEL
Blue Star
CG Cons. Elec.
CG Power & Inds Sol.
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
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
Consumer
Asian Paints
Britannia
Colgate
Dabur
Emami
Godrej Cons.
GSK Cons.
HUL
ITC
Jyothy Lab
Marico
Nestle
Page Inds
Parag Milk
Pidilite Ind.
P&G Hygiene
United Brew
United Spirits
Healthcare
Alembic Phar
Alkem Lab
Ajanta Pharma
Aurobindo
1 Day (%)
0.4
1.7
-0.5
1.7
-0.1
0.9
0.5
1.0
0.6
0.5
1.7
-0.5
0.5
-0.4
-0.3
-0.8
0.4
3.4
-1.0
0.6
1.7
0.3
-0.9
0.7
4.3
-1.7
3.1
-1.1
0.9
-0.5
-0.8
1.7
0.3
0.1
1.5
0.2
-1.6
-0.1
0.2
-1.1
1.5
0.0
-0.6
1.2
-1.1
-4.3
-0.2
-0.7
-0.8
-1.0
-1.0
0.6
-1.8
1.5
1M (%)
-2.3
-7.0
-18.8
-1.0
-9.5
-12.2
-12.1
-10.2
-5.5
-11.4
2.5
-1.1
1.8
-7.0
0.5
-5.1
-4.2
6.4
12.8
-9.0
-5.4
19.3
-4.0
-4.0
-0.3
-9.4
-6.1
-3.7
-8.4
-5.9
-10.9
-8.3
0.1
-5.0
12.2
5.5
2.0
-0.5
1.2
9.4
8.1
-0.7
0.9
4.4
9.6
-13.3
6.9
-2.0
-3.1
7.6
-13.9
-1.7
-4.8
6.2
12M (%)
23.1
33.6
14.2
54.0
65.5
11.6
15.3
-7.4
36.3
-40.1
87.2
15.7
-8.3
5.2
30.8
5.3
21.0
19.2
51.1
1.2
5.7
109.2
144.3
30.6
111.2
60.6
33.4
28.0
-9.0
25.7
31.4
25.4
13.7
32.8
26.5
-7.7
10.5
25.3
-4.4
24.1
29.5
27.8
22.7
4.1
23.7
-15.8
16.6
26.9
5.4
-6.3
-2.0
36.2
3.3
-11.4
19 June 2017
16

MOSL Universe stock performance
Company
Biocon
Cadila
Cipla
Divis Lab
Dr Reddy’s
Fortis Health
Glenmark
Granules
GSK Pharma
IPCA Labs
Lupin
Sanofi India
Sun Pharma
Syngene Intl
Torrent Pharma
Logistics
Allcargo Logistics
Blue Dart
Concor
Gateway Distriparks
Gati
Transport Corp.
Media
Dish TV
D B Corp
Den Net.
Hind. Media
HT Media
Jagran Prak.
PVR
Siti Net.
Sun TV
Zee Ent.
Metals
Hindalco
Hind. Zinc
JSPL
JSW Steel
Nalco
NMDC
SAIL
Vedanta
Tata Steel
Oil & Gas
BPCL
GAIL
Gujarat Gas
Gujarat St. Pet.
HPCL
IOC
IGL
MRPL
Oil India
ONGC
PLNG
Reliance Ind.
Retail
Jubilant Food
1 Day (%)
-1.6
-1.3
-2.2
-2.3
-0.8
-3.6
0.2
-1.0
0.3
-8.1
-4.4
0.3
-2.8
-0.2
-2.1
-0.5
-1.2
-0.1
2.3
-0.3
0.5
-0.2
0.5
0.9
0.0
0.2
1.0
2.4
-0.8
1.8
0.0
-0.7
-0.8
-0.8
-0.9
-0.4
-0.2
0.9
0.3
-0.1
0.5
0.3
0.9
1.8
2.1
-0.6
-0.2
-0.9
-1.4
-0.4
0.2
0.2
-2.5
1M (%)
1.1
7.5
-4.8
2.9
-1.7
-8.2
-10.6
-6.6
1.4
-14.4
-12.4
-4.0
-18.8
-7.0
-8.6
-6.9
-7.3
-5.3
6.3
-9.9
20.6
-19.7
3.8
-16.7
-2.9
-5.8
-4.6
1.2
-8.1
-6.2
-2.7
-0.6
-4.3
9.3
-3.3
-4.9
-12.2
-7.6
-0.7
9.9
-8.0
-8.0
3.7
-3.3
-2.0
-9.4
5.4
-3.5
-8.6
-9.9
-5.0
2.3
-10.7
12M (%)
41.3
65.6
10.7
-42.1
-12.1
18.0
-17.2
1.9
-29.1
-1.7
-22.8
-3.2
-29.8
16.4
-9.5
5.3
-28.3
5.5
-15.7
-19.0
65.4
-15.2
1.0
-5.3
0.6
3.3
5.9
66.7
-20.9
124.2
12.5
64.3
40.4
90.2
38.8
55.7
20.8
26.7
93.3
52.1
33.6
31.8
54.9
28.0
73.1
94.8
71.3
92.9
11.6
18.2
51.4
42.4
-12.7
Company
Titan Co.
Technology
Cyient
HCL Tech.
Hexaware
Infosys
KPIT Tech
L&T Infotech
Mindtree
Mphasis
NIIT Tech
Persistent Sys
Tata Elxsi
TCS
Tech Mah
Wipro
Zensar Tech
Telecom
Bharti Airtel
Bharti Infratel
Idea Cellular
Tata Comm
Utiltites
Coal India
CESC
JSW Energy
NTPC
Power Grid
Tata Power
Others
Arvind
Bata India
Castrol India
Century Ply.
Coromandel Intl
Delta Corp
Dynamatic Tech
Eveready Inds.
Interglobe
Indo Count
Info Edge
Inox Leisure
Jain Irrigation
Just Dial
Kaveri Seed
Kitex Garm.
Manpasand
MCX
Monsanto
Navneet Educat.
PI Inds.
Piramal Enterp.
SRF
S H Kelkar
Symphony
TTK Prestige
V-Guard
Wonderla
1 Day (%)
-0.4
0.0
-0.8
0.8
-1.2
0.1
0.1
-0.8
0.8
0.5
1.0
0.2
-0.6
-0.9
-2.2
0.0
-0.1
0.0
1.6
-1.2
0.4
-1.2
-1.0
0.5
-0.4
1.0
0.2
-0.1
0.3
1.4
1.1
0.3
2.2
0.9
2.1
0.9
0.3
-0.2
-0.7
0.2
-0.2
0.1
0.1
2.6
2.7
2.0
0.0
-1.0
0.5
2.5
-1.5
1.4
0.4
2.1
1M (%)
5.7
-5.9
-1.2
-1.9
-1.7
-4.8
3.9
1.0
4.3
7.6
14.4
-1.0
-1.2
-12.0
-1.0
-3.4
-2.7
-0.3
-11.4
8.6
-7.2
-10.3
-7.4
0.3
1.0
-7.2
-5.0
-4.2
-7.2
15.6
7.1
1.0
-9.5
6.5
8.5
-8.3
17.4
-0.5
7.5
-19.4
21.5
2.0
1.1
2.8
6.0
12.2
-2.4
5.5
-11.4
-0.9
-14.2
3.4
-16.5
-4.0
12M (%)
39.0
3.4
11.8
18.3
-20.7
-31.9
-18.6
14.3
4.4
-5.3
-13.4
-6.2
-26.8
-7.3
-9.8
5.3
7.7
-22.2
66.3
-16.9
52.2
-25.3
5.6
35.5
2.1
22.8
0.7
9.6
55.1
78.7
94.1
2.9
32.8
19.3
0.4
24.3
27.6
57.3
-36.7
45.4
-12.2
44.2
11.5
12.1
105.6
20.4
111.6
29.0
37.1
8.4
48.6
91.8
-5.0
19 June 2017
17

NOTES
19 June 2017
18

THEMATIC/STRATEGY RESEARCH GALLERY

REPORT GALLERY
RECENT INITIATING COVERAGE REPORTS
Rs

DIFFERENTIATED PRODUCT GALLERY

Disclosures
This document has been prepared by Motilal Oswal Securities Limited (hereinafter referred to as Most) to provide information about the company (ies) and/sector(s), if any, covered in the report and may be distributed by it and/or its
affiliated company(ies). This report is for personal information of the selected recipient/s and does not construe to be any investment, legal or taxation advice to you. This research report does not constitute an offer, invitation or
inducement to invest in securities or other investments and Motilal Oswal Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not for public distribution and has been furnished to
you solely for your general information and should not be reproduced or redistributed to any other person in any form. This report does not constitute a personal recommendation or take into account the particular investment
objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, investors should consider whether it is suitable for their particular circumstances and, if necessary, seek
professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for
future performance, future returns are not guaranteed and a loss of original capital may occur.
MOSt and its affiliates are a full-service, integrated investment banking, investment management, brokerage and financing group. We and our affiliates have investment banking and other business relationships with a some
companies covered by our Research Department. Our research professionals may provide input into our investment banking and other business selection processes. Investors should assume that MOSt and/or its affiliates are
seeking or will seek investment banking or other business from the company or companies that are the subject of this material and that the research professionals who were involved in preparing this material may educate investors
on investments in such business . The research professionals responsible for the preparation of this document may interact with trading desk personnel, sales personnel and other parties for the purpose of gathering, applying and
interpreting information. Our research professionals are paid on twin parameters of performance & profitability of MOSt.
MOSt generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. Additionally, MOSt
generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of any companies that the analysts cover. Our salespeople, traders, and other professionals or affiliates
may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make investment
decisions that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoingamong other things, may give rise to real or potential conflicts of interest.
MOSt and its affiliated company(ies), their directors and employees and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies
mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an
advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing
whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the affiliates of MOSt even though there might exist an inherent
conflict of interest in some of the stocks mentioned in the research report Reports based on technical and derivative analysis center on studying charts company's price movement, outstanding positions and trading volume, as
opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamental analysis. In addition MOST has different business segments / Divisions with independent research
separated by Chinese walls catering to different set of customers having various objectives, risk profiles, investment horizon, etc, and therefore may at times have different contrary views on stocks sectors and markets.
Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt MOSt or any of its affiliates or employees from,
any and all responsibility/liability arising from such misuse and agrees not to hold MOSt or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSt or any of its affiliates or employees free
and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The information contained herein is based on publicly available data or other
sources believed to be reliable. Any statements contained in this report attributed to a third party represent MOSt’s interpretation of the data, information and/or opinions provided by that third party either publicly or through a
subscription service, and such use and interpretation have not been reviewed by the third party. This Report is not intended to be a complete statement or summary of the securities, markets or developments referred to in the
document. While we would endeavor to update the information herein on reasonable basis, MOSt and/or its affiliates are under no obligation to update the information. Also there may be regulatory, compliance, or other reasons that
may prevent MOSt and/or its affiliates from doing so. MOSt or any of its affiliates or employees shall not be in any way responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the
information contained in this report. MOSt or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the
implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The recipients of this report should rely on their own investigations.
This report is intended for distribution to institutional investors. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision based on this report or for
any necessary explanation of its contents.
Most and it’s associates may have managed or co-managed public offering of securities, may have received compensation for investment banking or merchant banking or brokerage services, may have received any compensation
for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months.
Most and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
Subject Company may have been a client of Most or its associates during twelve months preceding the date of distribution of the research report
MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise of over 1 % at the end of the month immediately preceding the date of publication of the research in the securities mentioned in this
report. To enhance transparency, MOSt has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report.
Motilal Oswal Securities Limited is registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014. SEBI Reg. No. INH000000412
Pending Regulatory inspections against Motilal Oswal Securities Limited:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold inquiry and
adjudge violation of SEBI Regulations; MOSL replied to the Show Cause Notice whereby SEBI granted us an opportunity of Inspection of Documents. Since all the documents requested by us were not covered we have requested to
SEBI vide our letter dated June 23, 2015 to provide pending list of documents for inspection.
List of associate companies of Motilal Oswal Securities Limited -Click
here to access detailed report
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or
indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The research analysts, strategists, or research associates principally responsible for preparation of MOSt research receive
compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues
Disclosure of Interest Statement
Analyst ownership of the stock
Served as an officer, director or employee
Companies where there is interest
No
No
A graph of daily closing prices of securities is available at www.nseindia.com and http://economictimes.indiatimes.com/markets/stocks/stock-quotes
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which
would subject MOSt& its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures
Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has
an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Kong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to
SFO. Any investment or investment activity to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities,
products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in
Hong Kong.
Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOSL is not a
registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the
absence of specific exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services described herein are not available to or intended for U.S. persons.
This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This
document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors and will be
engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by
the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal
Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL, and therefore,
may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
For Singapore
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations and is a
subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors, as defined in the
Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time.
In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Varun Kumar
Varun.kumar@motilaloswal.com
Contact : (+65) 68189232
Office Address:21 (Suite 31),16 CollyerQuay,Singapore 04931
For U.S
13 December 2016
Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com
Motilal Oswal Securities Ltd
20