27 September 2017
Market snapshot
Equities - India
Close
Chg .%
Sensex
31,600
-0.1
Nifty-50
9,872
0.0
Nifty-M 100
18,260
0.6
Equities-Global
Close
Chg .%
S&P 500
2,497
0.0
Nasdaq
6,380
0.2
FTSE 100
7,286
-0.2
DAX
12,605
0.1
Hang Seng
10,968
0.5
Nikkei 225
20,330
-0.3
Commodities
Close
Chg .%
Brent (US$/Bbl)
58
-1.5
Gold ($/OZ)
1,294
-1.3
Cu (US$/MT)
6,353
-0.8
Almn (US$/MT)
2,101
-1.1
Currency
Close
Chg .%
USD/INR
65.5
0.5
USD/EUR
1.2
-0.5
USD/JPY
112.3
0.6
YIELD (%)
Close
1MChg
10 Yrs G-Sec
6.7
0.1
10 Yrs AAA Corp
7.6
0.0
Flows (USD b)
26-Sep
MTD
FIIs
-0.3
-1.1
DIIs
0.2
2.1
Volumes (INRb)
26-Sep
MTD*
Cash
305
322
F&O
7,369
5,852
Note: YTD is calendar year, *Avg
YTD.%
18.7
20.6
27.2
YTD.%
11.5
18.5
2.0
9.8
16.7
6.4
YTD.%
4.6
12.3
15.0
23.3
YTD.%
-3.6
12.0
-4.0
YTDchg
0.2
0.0
YTD
5.8
8.6
YTD*
293
5,347
Today’s top research theme
India Strategy: Nifty reconstitution, Marginal FY19E EPS downgrade;
Weight of Private Financials to increase; PSU Banks to hit new low
The NSE Nifty-50 composition is all set for a reshuffle on Friday, 29th September
2017. Key observations:
Bajaj Finance will be included in the benchmark with 1% weight, taking NBFC’s
weight to 9.5% (+90bp).
HPCL will enter with 0.9% weight, helping Oil & Gas to cement its position in the
benchmark. This is first time in the history of the benchmark when all three
OMCs will be part of the index. UPL will enter the index with 0.8% weight.
With the exit of Bank of Baroda (weight: 0.4%), PSU Banks’ weight will be at
an all-time low of 2.5%. Other losers include Utilities (-40bp), Cement (-40bp),
Automobile (-40bp) and Private Banks (-30bp).
Aggregate weight of the existing 47 Nifty-50 stocks will decline by 120bp. Top-
5 stocks to be most impacted (in terms of weight) by the reshuffle: HDFC Bank
(-12bp), HDFC (-9bp), Reliance Ind (-9 bp), ITC (-8bp) and ICICI Bank (-6bp).
Post this reshuffle, BFSI will have an index weight of 35.8% (+30bp), almost
equivalent to the combined weights of Oil, Technology and Auto.
Nifty EPS for FY18 will see marginal upgrade of 0.2%. It will, however, see a
downgrade of 0.4% for FY19, primarily due to a higher increase in free float
market cap of 1.6% compared to a rise of 1.8%/1.1% in free float PAT for
FY18/FY19.
Research covered
Cos/Sector
India Strategy
Media
Key Highlights
Nifty reconstitution; Marginal FY19E EPS downgrade
GST/demon impact waning, expect festive season boost
Piping hot news
ADB lowers India growth forecast for this fiscal, next
The Asian Development Bank has lowered India’s growth forecast to 7 per
cent for 2017-18 from its earlier estimate of 7.4 per cent owing to weak
private consumption and business investment and muted manufacturing
output.
Chart of the Day: India Strategy – Nifty reconstitution, Weight of NBFC’s and Oil to
increase; PSU Banks to hit new low
NBFCs and Oil & Gas will see an increase in weight
Auto, Utilities, Cement, PSU Banks – biggest losers
Research Team (Gautam.Duggad@MotilalOswal.com)
Source: NSE, MOSL
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
GST receipts in August raise
questions about compliance
Union and state governments
collected Rs90,669 crore as goods
and service tax (GST) in August,
3.6% less than what was collected
in July, the first month of the
indirect tax reform, as businesses
and traders attempted to settle
down in the new system despite
technology hiccups…
2
The rupee took a beating for the second straight day on Tuesday , plunging
by a hefty 35 paise to hit a fresh six-month low of 65.45 a dollar due to
heavy demand for the US currency from importers amid foreign fund
outflows. Highly volatile equities along with extremely strong US dollar,
which climbed to a fresh three—week high against major global
currencies, predominantly put pressure on the rupee…
Rupee in free fall, trips 35 paise on panic dollar buying
3
Under investors' pressure,
IDFC and Shriram to redraw
merger formula
IDFC Ltd and the Shriram Group
have decided to abandon the
merger plan worked out in July
this year as shareholder pressure
and dilution fears force them to
examine a new, less complicated
structure…
4
GE warns India about massive
risks to changing $2.5 bn
Railways deal
General Electric Co. warned Indian
officials that walking away from a
multibillion-dollar locomotive
contract would harm job creation
and have a chilling effect on
investment. Altering the deal
would “undermine one of the
most promising infrastructure
projects in the country…
5
Tata group weighs retaining
part of telecom business
The Tata group is not looking to
sell its telecom business in its
entirety, but will retain some
valuable segments within the
business, said a person familiar
with the company’s plans on
condition of anonymity…
6
Indirect tax share in GDP at all-
time high of 10.5%
There has been a steady rise in
indirect taxes (net of subsidies) in
recent years, pushing up retail
prices of commonly used goods
and services…
7
Move over 4G, India sets eyes
on 5G launch by 2020
The government on Tuesday set
up a panel to lay down a roadmap
for the rollout of 5G mobile
networks in India by 2020, in a
move that not only promises to
make wireless connections
blazingly fast but will also make
room for the proliferation of
Internet-connected smart
devices…
27 September 2017
2

26 September 2017
India Strategy
BSE Sensex: 31,627
Latest Strategy Report:
Sectoral weights in Nifty
S&P CNX: 9,873
Nifty reconstitution; Marginal FY19E EPS downgrade
Weight of Private Financials to increase 60bp; PSU Banks to hit new low
NSE Nifty-50 composition is all set for a reshuffle on Friday, 29 September 2017.
Bajaj Finance, HPCL and UPL will replace ACC, Bank of Baroda and Tata Power. Tata
Motors, which carries Differential Voting Rights (DVR), will be excluded – it was an
additional stock in the benchmark.
In this report, we highlight how these changes will (i) impact the earnings for the
benchmark and (ii) alter the weights of various sectors.
th
Nifty-50 reconstitution: NBFC’s weight nearing double-digit
Bajaj Finance will be included in the benchmark with 1% weight, taking NBFC’s
weight to 9.5% (+90bp).
HPCL will enter with 0.9% weight, helping Oil & Gas to cement its position in
the benchmark. This is first time in the history of the benchmark when all three
OMCs will be part of the index. UPL will enter the index with 0.8% weight.
With the exit of Bank of Baroda (weight: 0.4%), PSU Banks’ weight will be at an
all-time low of 2.5%. Other losers include Utilities (-40bp), Cement
(-40bp), Automobile (-40bp) and Private Banks (-30bp).
Least impacted sectors would be Technology, Consumer, Healthcare, Capital
Goods, Metals, Telecom and Media.
Post this reshuffle, BFSI will have an index weight of 35.8% (+30bp), almost
equivalent to the combined weights of Oil, Technology and Auto.
Aggregate weight of the existing 47 Nifty-50 stocks will decline by 120bp.
Top-5 stocks to be most impacted (in terms of weight) by the reshuffle: HDFC
Bank (-12bp), HDFC (-9bp), Reliance Ind (-9 bp), ITC (-8bp) and ICICI Bank (-6bp).
Top-10 stocks currently contribute 53.5% of Nifty-50. Post reshuffle, this is
likely to come down to 52.8% (-70bp).
Nifty EPS for FY18 will see marginal upgrade of 0.2%. It will, however, see a
downgrade of 0.4% for FY19, primarily due to a higher increase in free float
market cap of 1.6% compared to a rise of 1.8%/1.1% in free float PAT for
FY18/FY19.
We now estimate Nifty EPS at INR491 for FY18 (+15.9%) and ~INR605 for FY19
(+23.2%).
Notably, the cumulative free float market cap of the new stocks to be included
is 2.4x of the stocks to be excluded from the index.
Nifty trades at a P/E of 20.4x on FY18E earnings based on current composition;
this will remain unchanged post reshuffle. However, based on FY19E earnings,
Nifty P/E will expand marginally from 16.4x to 16.5x post the reshuffle.
Of top-5 stocks to be most impacted, three are from Private Financials
Nifty EPS downgrade of 0.4% for
FY19
Nifty EPS: FY18E unchanged, FY19E to see marginal cut of 0.4% to INR605
27 September 2017
3

Bajaj Finance only outperformer
post announcement of inclusion
(Prices rebased to 100)
Key institutional activity in new entrants
Since the announcement of index reshuffle, Bajaj Finance is the only stock to
trade higher (+2%), whereas HPCL (-5%) and UPL (-4%) are trading lower.
Domestic MFs hold 0.8% of their total AUM in Bajaj Finance, which will be
lower compared to the benchmark weight (1% in Nifty-50). However, domestic
MFs hold 0.7% and 0.6% of AUM in HPCL and UPL, respectively, largely in line
with the weights in the benchmark.
DIIs hold 6.5% (+0.6% QoQ in Sep-2017) and FIIs hold 21.2% (+2.6% QoQ in Sep-
2017) in Bajaj Finance. In HPCL, DIIs hold 10.1% (+0.5% QoQ in June 2017) and
FIIs hold 16.9% (unchanged QoQ in June 2017). DIIs hold 11% (+0.2% QoQ in
June 2017) and FIIs hold 41.9% (-0.1% QoQ in June 2017) in UPL.
Current FII limit in Bajaj Finance, HPCL and UPL is 30%, 40% and 74% of the
paid-up capital of the company, respectively.
Of the top-20 domestic MFs, 5, 7 and 3 funds have exposure of over 1% of their
AUMs to Bajaj Finance, HPCL and UPL, respectively.
Trend in number of stocks
reshuffled in a particular year
Number of stocks reshuffled highest in last 10 years
In CY17, Nifty-50 saw the highest number of stocks reshuffled in a particular
calendar year – total seven stocks have been reshuffled.
Since CY12, 24 stocks have been reshuffled. Notably, the weight of the
reshuffled stocks is quite stable.
Weights of IndusInd Bank and Yes Bank in the index are at new highs – up 2.6x
and 2.1x, respectively, since they entered the index.
However, Tech Mahindra’s weight has halved. Lupin’s weight is down
significantly from its peak of 1.6% to 0.6% due to its underperformance over
the past two years.
Stocks where weights are quite stable since they entered the index are: Asian
Paints, Ultratech, Zee Entertainment, Bosch, Adani Ports, Eicher Motors,
Aurobindo Pharma and Bharti Infratel.
Top 10 stocks in Midcap-100 (%)
Nifty Midcap-100 reconstitution: Healthcare, Technology and Retail big
gainers; NBFCs, Oil and Auto top losers
Nifty Midcap-100 composition will also a change along with other NSE indices.
Six stock changes: Adani Enterprises, Avenue Supermarts, Divis Lab, Escorts,
Fortis Healthcare and Infibeam Incorporation will replace MRF, Petronet LNG,
Reliance Capital, REC, Sun Pharma Advanced Research and Wockhardt.
Healthcare will take number one spot in allocation of Midcap-100 weights at
12.1% (+250bp), replacing NBFCs, which will shed 270bp to 10.5% (-270bp).
Oil & Gas’ weight will decline by 180bp to 3.3%; this is due to the exclusion of
Petronet LNG from the Midcap-100 index.
Avenue Supermarts will be included in Midcap-100 with 0.7% weight, taking
Retail’s weight to 2.2% (+70bp).
Note: Prices and weight calculation on closing of 22nd Sep 2017
27 September 2017
4

Nifty-50 reconstitution: All three OMCs now part of benchmark
It is first time in the history of the benchmark when all three OMCs will be part
of the Index. HPCL will enter with 0.9% weight, helping Oil & Gas to cement its
position in the benchmark.
Inclusion of Bajaj Finance (1% weight) will take NBFC’s weight to near double-
digit at 9.5% (+90bp). UPL will enter the index with 0.8%.
With the exit of Bank of Baroda (weight: 0.4%), PSU Banks’ weight will be at an
all-time low of 2.5%. Other losers include Utilities (-40bp), Cement
(-40bp), Automobile (-40bp) and Private Banks (-30bp).
Least impacted sectors would be Technology, Consumer, Healthcare, Capital
Goods, Metals, Telecom and Media.
BFSI will have a weight of 35.8% (+30bp) post the reshuffle, which will be almost
equivalent to the combined weights of Oil, Technology and Auto.
Exhibit 1: Trend in OMCs’ weight in Nifty-50 (%)
Weight in Nifty-50 (%)
CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 Current
BPCL 1.9
2.2
1.5
1.0
0.6
0.5
0.7
0.5
0.5
0.4
0.5
0.4
0.6
0.8
1.1
1.0
HPCL 2.9
2.4
1.5
0.8
0.5
IOCL
1.1
OMCs 4.8
4.6
3.1
1.8
1.1
0.5
0.7
0.5
0.5
0.4
0.5
0.4
0.6
0.8
1.1
2.1
w.e.f 29th Sep
1.0
0.9
1.1
2.9
Source: NSE, MOSL
Exhibit 2: NBFCs and Oil & Gas will see an increase in weight
Current Weight
New Weights w.e.f 29th Sep
Exhibit 3: Auto, Utilities, Cement, PSU Banks – biggest losers
New Weights w.e.f 29th Sep
Current Weight
11.9
9.5
8.6
11.2
10.8
24.1
23.8
10.4
3.8
3.4
2.0
1.6
2.9
2.5
Banks-PVT
NBFC
Oil & Gas
Auto
Utilities
Cement
Banks-PSU
Source: NSE, MOSL
Exhibit 4: Sectors which will not have material impact due to index reconstitution
Current Weight
New Weights w.e.f 29th Sep
9.8
4.3
9.7
11.4
11.2
0.8
0.7
0.9
0.8
Infra
2.1
2.1
3.6
3.5
3.9
3.8
4.2
Media
Telecom
Metals
Cap. Goods Healthcare Consumer
Tech.
Source: NSE, MOSL
27 September 2017
5

Update | 26 September 2017
Media
GST/demon impact waning, expect festive season boost
We conducted a series of channel checks with experts in the media space, including ad
planners and marketing/sales personnel of broadcasters/radio players. Key takeaways:
GST-led impact appears to be subsiding. More encouragingly, ad growth is showing
signs of a strong recovery with the onset of the festive season from mid-August. The
improvement is seen across the TV, Print and Radio segments.
Broadcasters are chasing free-to-air (FTA) ad market with better content, but not at
the cost of cannibalization of their own Pay-TV subscriber revenues. This will gradually
lower the risk posed by DD Freedish over the next 1-2 years.
Radio phase III has widened the reach of large players, attracting more advertiser
interest. With latent ad demand, the Radio industry should outpace the TV and Print
mediums over the next 3-5 years. Notably, despite higher inventory supply, pricing in
the Radio space remains firm.
In print media, compared to vernacular, English has been more susceptible to risks
posed by rising digital viewership.
The future of the digital medium remains uncertain, though. Although longer-term
digital viewership prospects appear promising, the near-term trends lack visibility – it
remains to be seen whether it will widen or cannibalize the audience base.
Pay-TV and FTA revenue to go hand in hand
Broadcasters wary of Pay-TV subscriber revenue cannibalization
:
The
prevailing risk of DD Freedish in the market may not be sustainable. While
broadcasters are improving their FTA content to attract a wider audience, the
idea is to not cannibalize Pay-TV subscription revenue. There will be a clear
demarcation of Pay-TV and FTA content, which should likely take care of Pay-TV
subscriber revenues.
Digitization:
Nearly 40% of digitization, particularly in phase IV and III, is still not
complete.
Star not looking to drive FTA revenue at the cost of Pay-TV subscription:
Star’s
recent FTA channels, such as Sports and Star Bharat, will have limited
cannibalization due to the proper demarcation of content. This will ensure two
things: (1) restricted down-trading of current Pay-TV consumers and (2) for new
consumers, it may not substitute for Pay-TV content quality. However, Star TV
wants to be ahead of the curve to capture any threats in the sector, particularly
if the FTA market gets bigger (due to non-affordability of Pay-TV for many low-
profile CAS subscribers).
Content needs refurbishment
:
Revision in Pay-TV content is essential, as there
could be pressure from FTA channels on the lower side and from OTT operators
on the higher side
.
Advertisers look at longer-term ratings, not just at 1-2 weeks:
E
ven though
pricing is determined on CPRP (cost per rating point), which impacts advertiser
pricing, the advertisers on GEC typically look at a wider trend of ratings v/s just
1-2 weeks to attain a sustainable viewership share.
27 September 2017
6

Latent demand augurs well for Radio
Expanding reach to favor Radio growth:
We received similar views from
multiple industry experts (media ad planners, marketing heads) that
investments by the radio operators are driven by inherent demand for radio ads.
Advertisers appear impressed with Radio’s wider reach with Phase III.
Subsequently, Radio should grow at a higher pace v/s TV and Print over the next
3-5 years.
Prices remain firm
:
New inventory supply from phase III investment has not
impacted pricing. In fact, Radio Mirchi, after cutting inventory last quarter, has
again increased its inventory from 14mins to 15mins on average across its 32
stations.
Top 2-3 players get higher share; diary system not an issue
:
First, RAM’s diary
system is not seen so negatively by advertisers, as even TV in the past has grown
on the back of diary-based research. Also, advertisers have in-house workings
on the overall ad market to corroborate data. Advertisers typically choose the
top 2-3 players for any ad campaign. This 1) addresses the risk of opaque
measurement and 2) provides an expanded reach. This is the key reason why
the market share is largely dominated by the top 4-5 players. Large players’
geographical strength and relation with advertisers also play a part.
Focus on internal research; invest in top 2-3 stations to mitigate risk from
weak measurement data
:
In order to mitigate the risk of weak measurement
system, advertisers verify RAM data with internal research and invest in the top
2-3 stations.
Radio preferred for local ad campaigns:
Radio attracts consumer goods players that are
either looking for 1) local ad campaigns or 2) increasing reach (this is where the new
phase III stations will become more
important
).
Print – most vulnerable to digital viewership
Impact of digital viewership is higher on English v/s vernacular print medium.
Circulation numbers expected to remain steady:
Ahead of the IRS survey
release this year, the regional print circulation across industry players is
expected to remain steady.
Digital medium still in a maze
Although longer-term digital viewership prospects appear promising, the near-term
trends lack visibility – it remains to be seen whether it will widen or cannibalize the
audience base. Also, due to the fragmented nature of digital platforms, advertisers
are unable to decide clearly on the digital advertising medium.
27 September 2017
7

In conversation
1. SBI : Customer segment for SBI is different from private banks;
Rajnish Kumar, MD
Representation from certain segments of account holders like pensioners and
widows that were unable to maintain the monthly average balance. Income
level is not such that they can afford these charges.
Won't push up cost; cost remains the same. No impact on business after
introducing charges. Still open one lakh accounts every day.
Customer feedback was that Rs 5,000 is a high average balance.
Regarding circular on investments in Real Estate Investment Trust (REIT)/
Infrastructure Investment Trust (InvIT), said these are good options for banks.
2. HPCL : Government appointed advisors to decide on
valuations of company; MK Surana, CMD
One of the methodologies of evaluation can be on basis of market price.
Government has appointed advisors to decide on the valuations of the
company.
Open offer is to be made by the buyer. As far as the company is concerned, not
required to take any action on that except for what is required as per Securities
and Exchange Board of India (SEBI) and Companies Act.
3. REC : Grateful to government for trusting rec as nodal agency
for Saubhagya scheme; PV Ramesh, CMD
Grateful to government for trusting company for being the nodal agency. Will
continue to do whatever the government directs. Company works in close
coordination with the state governments and the distribution companies.
Company is also a nodal agency for Ujwal DISCOM Assurance Yojana (UDAY) and
the Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY).
State governments are well geared to implement village electrification. So this
should be a logical extension of the process.
Demand for capital investment and distribution network, in addition to what is
being done under DDUGJY, has gone up, which is a very positive trend.
4. DHFL : Aiming for 20% growth, around Rs 2 lakh cr Aums by
2020; Kapil Wadhawan, CMD
Very upbeat on outlook for the business going forward.
Assets under management (AUMs) would touch nearly Rs 2 lakh crore and the
return on equity would be over 20 percent by 2020.
Confident of the networth of the company being around Rs 10,000 crore by
FY18-end.
27 September 2017
8

From the think tank
1. In defence of manufacturing
Jack Ma knows what he is talking about when it comes to entrepreneurship. The
Alibaba Group founder and executive chairman got in at the ground floor of the
internet revolution in 1995 with a handful of borrowed cash and rode the elevator
all the way to the top. He is now one of the world’s richest men and most
influential businessmen. So when he says that the days of manufacturing driving
growth are over and small, networked businesses and entrepreneurs will drive
growth this century, it’s worth paying attention. Is he correct? There is more to
back up Ma’s statement than just the Alibaba experience, which has proved the
potential of monetizing small-scale entrepreneurship. Economic research has
consistently shown that innovation drives economic growth. It boosts allocative
efficiency of resources, fosters competition, boosts trade through product
diversity and helps provide low-cost solutions to human development challenges.
Start-ups and small businesses are some of the strongest repositories of the
entrepreneurship that drives innovation. Certainly, big manufacturing enterprises
can drive innovation—think automobile giants feeling their way towards an
electric vehicle future—but even here, it has been former start-up Tesla, which
has retained its agility and disruptiveness as it has grown exponentially, that has
goaded them. In general, much of the vital churn comes from start-ups and small
businesses that are snapped up by larger companies to acquire patents.
2. Time for a reserve Bank of India ‘dot plot’
On 22 September 2016, India’s monetary policy framework took a significant
step forward, with the formation of the monetary policy committee (MPC). The
Narendra Modi government appointed three scholars—Chetan Ghate, Pami Dua
and Ravindra Dholakia—to the committee, a welcome decision. The academics
joined three internal members of the Reserve Bank of India (RBI)—Urjit Patel, R.
Gandhi and Michael Patra—in determining interest rates for the world’s fastest
growing economy. Why was the MPC created? Why was it hailed as a
“revolutionary step in the fight against inflation” by former RBI governor
Raghuram Rajan? He cited three reasons: “First, a committee can represent
different viewpoints. Second, spreading responsibility for the decision can
reduce pressure that falls on an individual. Third, a committee will ensure broad
monetary policy continuity when any single member changes.” His assessment
consists of three elements: pluralism, independence and continuity, qualities
which any institution should aspire to. Another important expectation was
increased transparency in the monetary policy decision-making process. It was
clear that inflation forecasts and the accompanying commentary of the MPC
would influence India’s public discourse and improve general understanding of
how the economy works. The minutes would provide an insight into how the
different committee members think.
27 September 2017
9

3. Of new ecosystems and more competition
There is a fundamental shift in industry today—of ecosystems, rather than
individual firms, competing with each other. Companies are looking outside
their organizations to acquire skills and capabilities rather than building them in-
house. This means that they are also integrating and partnering with other
organizations more proactively than before. The first driver is the rise of the
new-age consumer who is more aware and has access to more information. This
makes them extremely demanding, and at the same time not loyal to any one
brand. With digital and new-age technology, empowering the consumer, it is no
longer about companies saying, “This is what I have and, hence, this is what you
get”. Today’s consumers are saying, “This is what I want, how I want, and if you
can’t give this to me, I am going elsewhere”. This shift is putting immense
pressure on organizations to take a holistic, long-term view in terms of revenue
and create a sustainable business by increasing proximity with consumers.
Agility has hence become the norm. New technologies and the pace at which
they are advancing have added more complexity to these requirements. While
everyone understands that technologies such as blockchain, cognitive, Artificial
Intelligence (AI), robotics, etc., can do wonders for their business, developing in-
house capabilities and continuously upgrading those can also become a
distraction from the core business.
4. Arvind subramanian vs RBI: not just India’s cbank, even us fed
chief janet yellen at sea over inflation
Chief economic advisor Arvind Subramanian has been at the forefront of the cry
asking India’s central bank to cut interest rates since it is hitting both India’s
producers and also responsible for keeping the rupee strong. While RBI cites
inflation concerns for going slow, Subramanian argues that India’s inflation has
slipped into a low-growth cycle that RBI doesn’t seem to appreciate. The CEA
has shown that, in six of the last 14 quarters, RBI has forecast inflation at 180bps
(on average) higher than it actually was—and this is three-month-ahead
forecasts. Subramanian details several reasons for this, but chief among them is
lower commodity prices globally, especially for oil, and the monsoon-proofing of
Indian agriculture. With US shale profitable at $50 per barrel, Subramanian says
this is an informal ceiling of sorts to global oil prices since, if it rises above that,
US shale starts kicking in. Well, the good news is that it is not just India’s central
bank that doesn’t get it. Fed chief Janet Yellen has just said she doesn’t quite
know what is keeping inflation so low.
27 September 2017
10

International
5. Softbank can’t count on having perpetual fans in Asia
Masayoshi Son has found a new breed of believers: yield-hungry Asian investors.
SoftBank Group Corp. has already issued $7.9 billion of dollar-denominated
bonds this year, but there’s a key difference versus other offerings. These notes
are unique in that they cater specifically to Asian investors. The Japanese
technology conglomerate’s $4.5 billion of perpetual securities, sold in July, are
registered in Singapore and classed as Reg S, meaning SoftBank couldn’t market
them to money managers in the US. In 2013, when SoftBank first tapped the
dollar bond market, its $2.5 billion issue was 144A.
SoftBank’s two lots of perpetual bonds, which pay a coupon of 6% and 6.875%,
also include an interest deferral option. Their prospectus states that SoftBank
may: “at its discretion, elect to defer all or part of any interest payment which is
otherwise scheduled to be paid on an interest payment date by giving a deferral
notice of such election to the holders, the trustee and the principal paying
agent. If the company elects not to make all or part of any interest payment on
an interest payment date, then it will not have any obligation to pay such
interest on the relevant interest payment date and any such nonpayment of
interest will not constitute an enforcement event or any other breach of the
company’s obligations under the notes or for any other purpose.”
27 September 2017
11

Click excel icon
for detailed
valuation guide
Rs
Valuation snapshot
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E FY19E
25.9
25.0
23.0
48.7
45.4
18.0
50.3
43.2
32.3
25.3
22.4
22.9
43.6
31.7
20.7
55.2
28.6
33.2
26.1
31.0
23.3
31.6
18.5
24.5
35.2
NM
37.1
42.8
13.3
24.7
29.8
23.8
NM
17.4
34.9
9.0
NM
22.0
867.0
16.2
95.5
54.8
44.6
30.4
23.4
18.8
63.4
37.1
18.0
37.6
16.2
25.7
22.0
22.1
34.9
39.3
17.8
36.1
34.6
17.4
22.4
20.0
18.2
23.7
28.0
18.3
45.0
24.6
23.4
21.8
90.3
20.8
26.3
19.0
20.6
27.3
19.3
30.6
28.2
10.1
19.5
24.0
14.9
NM
10.9
8.3
7.7
7.4
23.4
17.7
14.5
16.9
38.6
29.4
22.5
19.2
14.8
51.9
32.9
14.4
26.9
14.9
4.8
5.4
5.2
7.2
7.5
2.8
15.7
8.2
3.3
3.5
7.5
2.9
2.7
6.6
2.4
12.8
4.9
2.3
2.7
2.4
2.2
5.3
2.1
1.3
5.1
0.7
4.8
4.5
1.1
3.8
3.4
0.9
0.6
0.7
0.5
0.9
0.3
0.8
1.2
0.4
0.8
10.5
5.3
3.2
3.9
2.2
19.0
6.9
4.3
4.4
2.9
4.1
4.8
4.7
6.3
6.7
2.5
11.7
6.9
2.8
3.2
6.4
2.6
2.4
5.8
2.1
10.5
4.3
2.1
2.2
2.3
1.8
4.6
1.9
1.3
4.4
0.7
4.3
3.2
1.1
3.3
3.0
0.9
0.7
0.7
0.5
0.8
0.3
0.7
1.1
0.4
0.8
8.5
4.3
2.8
3.3
2.0
15.6
6.2
3.8
3.9
2.5
20.3
23.1
25.3
16.2
15.8
16.9
37.1
20.8
10.6
13.9
35.7
14.2
6.4
20.3
9.8
25.6
17.1
6.9
10.8
9.5
9.9
18.3
10.2
5.6
15.4
-27.0
13.8
12.3
9.5
18.9
11.5
4.0
-6.7
4.2
1.4
10.1
-8.4
3.6
-0.2
2.7
0.9
21.7
15.1
12.0
18.0
14.4
32.5
18.9
25.5
12.4
19.4
17.3
23.2
22.2
19.2
18.0
14.8
37.0
21.6
17.3
14.1
34.6
13.9
10.8
20.1
12.3
25.7
17.4
9.3
11.4
2.6
10.0
18.8
8.9
6.3
17.3
3.5
15.0
13.6
10.8
18.3
12.5
6.1
-5.2
6.2
5.8
10.9
4.6
3.2
7.0
3.0
4.6
24.3
16.1
13.3
18.6
14.1
33.0
19.3
28.2
15.6
18.2
19.9
27.0
24.0
22.8
20.7
17.3
35.4
23.3
18.3
15.0
31.5
14.9
11.5
22.8
26.6
33.6
22.3
14.7
11.8
8.7
10.5
19.6
9.5
6.9
18.5
7.2
16.3
13.9
12.7
19.5
14.2
12.4
3.0
9.1
7.3
11.2
5.4
5.9
11.4
6.1
8.3
25.9
28.0
15.6
19.0
15.6
32.8
18.4
31.3
19.1
18.5
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
Aggregate
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
Aggregate
Banks - PSU
BOB
BOI
Canara
IDBI Bk
Indian Bk
OBC
PNB
SBI
Union Bk
Aggregate
NBFCs
Bajaj Fin.
Bharat Fin.
Capital First
Cholaman.Inv.&Fn
Dewan Hsg.
GRUH Fin.
HDFC
Indiabulls Hsg
L&T Fin Holdings
LIC Hsg Fin
Reco
Buy
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Neutral
Buy
Neutral
Buy
Not Rated
Buy
Buy
Buy
CMP
(INR)
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
36
4
8
6
2
21
16
4
14
31
1
31
12
32
-6
28.0
4.6
132.3
26.2
473.1
93.3
612.7
23.5
20.0
8.1
169.1
54.3
5.4
248.6
19.8
11.7
28.2
37.9
5.2
7.0
137.2 163.6
36.5
50.5
547.2 705.7
94.2 126.8
852.9 1,092.8
29.3
37.9
37.1
45.8
9.2
11.0
189.3 199.1
68.5
82.4
9.9
11.8
281.7 374.5
22.4
59.8
14.4
23.7
725
986
114
118
3,036 3,281
1,274 1,353
21,489 21,994
1,675 2,029
30,824 35,854
1,014 1,059
644
732
206
269
3,786 3,818
1,246 1,634
234
-
7,886 8,819
411
542
648
612
Neutral
510
Neutral
182
Buy
156
Buy
112
Buy
1,791
Buy
283
Neutral
57
Under Review 1,689
Neutral
74
Buy
994
Under Review 509
Buy
29
Buy
360
545
192
201
139
2,000
366
62
-
91
1,153
-
34
427
7
5
29
24
12
29
8
23
16
17
18
15.4
7.0
5.0
4.8
56.8
15.3
2.3
47.9
-31.3
26.8
11.9
2.2
14.6
21.8
8.4
1.7
5.4
68.2
14.9
2.8
61.9
3.8
32.4
18.0
2.9
18.5
38.1
10.4
6.1
6.8
82.1
17.0
3.2
76.8
8.2
41.0
23.7
3.7
22.9
Buy
Neutral
Neutral
Neutral
Buy
Neutral
Buy
Buy
Neutral
143
144
328
54
263
126
137
258
131
198
149
360
49
382
150
184
341
140
39
4
10
-8
45
19
34
32
7
6.0
-14.8
18.8
1.5
29.3
-31.6
6.2
0.3
8.1
9.5
-11.2
30.1
6.4
34.4
17.1
5.8
14.6
9.0
20.8
6.6
47.0
8.6
38.3
21.4
11.0
26.8
19.1
Buy
Neutral
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Neutral
1,839
936
749
1,076
556
516
1,740
1,241
197
620
1,800
820
925
1,400
630
450
1,900
1,350
200
708
-2
-12
24
30
13
-13
9
9
2
14
33.6
21.0
24.6
46.0
29.6
8.1
46.8
69.0
5.2
38.2
47.6
31.8
33.3
56.0
37.7
9.9
52.9
86.3
7.3
41.6
62.9
68.7
44.3
67.3
47.1
12.1
59.0
108.4
10.6
48.9
27 September 2017
12

Company
Reco
Manappuram
Not Rated
M&M Fin.
Buy
Muthoot Fin
Buy
PFC
Neutral
Repco Home
Buy
REC
Neutral
Shriram City Union Buy
STF
Buy
Aggregate
Capital Goods
ABB
Sell
Bharat Elec.
Buy
BHEL
Sell
Blue Star
Neutral
CG Cons. Elec.
Buy
CG Power & Indu. Neutral
Cummins
Buy
GE T&D
Neutral
Havells
Neutral
K E C Intl
Neutral
L&T
Buy
Pennar Eng.
Not Rated
Siemens
Neutral
Solar Ind
Neutral
Suzlon Energy
Not Rated
Thermax
Neutral
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
Neutral
Jyothy Lab
Neutral
CMP
(INR)
100
405
478
126
604
161
2,070
1,007
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
-
8.6
10.8
12.5
459
13
7.1
13.9
17.8
550
15
29.5 38.2
44.2
117
-7
25.7 27.2
30.2
800
32
29.1 34.5
39.3
134
-17
31.4 35.0
40.4
2,800
35
84.3 121.7 164.1
1,330
32
55.6 80.0 102.4
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E
11.5
9.3
2.5
2.3
24.0 25.9
57.1 29.2
3.6
3.4
6.5
12.0
16.2 12.5
2.9
2.5
19.4 21.5
4.9
4.6
0.8
0.7
17.9 17.0
20.7 17.5
3.3
2.8
17.4 17.5
5.1
4.6
0.9
0.8
19.9 19.1
24.5 17.0
2.7
2.4
11.7 15.0
18.1 12.6
2.0
1.8
11.7 15.0
20.8 17.5
3.5
3.1
16.8 17.6
72.7
26.3
59.4
58.2
45.0
18.9
34.6
68.2
51.4
26.1
27.4
14.5
74.4
44.6
25.4
28.4
20.5
33.5
34.9
53.4
45.2
30.3
67.7
16.7
30.5
28.4
55.8
25.6
NM
389.0
46.6
40.7
35.9
55.8
58.8
50.9
42.5
41.3
48.4
31.5
62.0
31.2
34.0
63.9
24.6
27.9
42.7
41.8
38.2
33.2
42.0
44.9
23.7
24.9
11.3
58.4
37.9
18.3
29.2
17.6
30.9
30.4
37.5
32.8
21.7
38.2
15.8
21.4
24.1
40.0
25.5
34.6
30.5
38.9
42.8
30.8
52.8
50.7
44.2
39.8
40.7
42.4
31.1
53.1
28.3
38.9
9.2
5.4
1.0
9.5
24.5
1.2
6.8
9.7
9.4
5.0
3.2
1.5
6.9
8.2
-1.5
3.9
3.4
5.2
3.9
2.7
3.5
2.1
4.7
1.8
1.0
3.8
3.3
4.4
3.2
5.6
8.1
4.5
3.5
14.8
19.3
23.1
11.2
14.2
11.7
6.6
40.6
7.1
6.4
8.1
4.2
0.9
8.9
18.1
1.1
6.3
8.5
8.4
4.3
3.0
1.3
6.0
7.0
-1.6
3.5
2.9
4.6
3.6
2.6
3.4
1.9
4.2
1.6
1.0
3.3
3.0
3.8
2.9
4.9
6.8
4.1
3.2
13.5
15.9
21.9
9.6
12.1
9.1
6.5
40.2
7.0
6.4
12.7
20.6
1.6
18.0
76.4
6.2
21.2
12.4
18.2
21.2
12.5
10.2
9.3
19.8
NM
14.3
16.8
18.0
11.2
5.1
7.9
7.3
7.2
11.5
3.4
14.4
6.0
19.0
-3.2
1.4
18.4
11.6
9.6
28.5
36.9
50.4
28.4
35.8
24.6
22.2
66.5
23.5
21.1
12.6
17.0
3.4
21.4
49.7
3.0
19.7
21.5
18.6
19.5
12.4
11.6
10.3
19.8
-8.8
12.7
17.6
15.8
11.7
7.0
10.6
9.2
11.6
10.9
4.7
14.8
7.9
16.1
8.8
17.0
19.1
10.1
10.3
26.7
34.3
50.8
26.0
32.0
24.2
21.1
76.2
24.8
16.5
FY19E
26.9
14.2
21.2
16.8
17.0
19.1
17.6
16.9
18.1
15.8
16.9
3.5
29.6
49.7
3.7
22.8
22.7
20.7
20.9
13.8
12.6
13.7
20.9
-11.0
12.8
17.4
16.0
12.9
7.9
13.1
12.2
13.4
13.9
6.6
17.5
12.1
17.5
12.8
22.9
19.1
14.0
12.7
28.1
34.5
58.2
26.3
33.9
22.8
22.6
87.2
26.3
18.4
1,432
182
128
749
211
78
918
391
492
309
1,160
102
1,325
919
16
875
610
519
1,200
215
100
650
250
80
1,180
395
455
295
1,380
-
1,355
900
-
830
800
430
-16
18
-22
-13
19
3
29
1
-7
-5
19
2
-2
-5
31
-17
19.7
6.9
2.1
12.9
4.7
4.1
26.5
5.7
9.6
11.9
42.3
7.1
17.8
20.6
0.6
30.8
29.8
15.5
22.4
7.4
4.6
17.5
5.0
2.0
27.7
9.3
10.9
13.1
46.5
9.1
22.7
24.2
0.9
30.0
34.6
16.8
31.6
8.2
4.9
26.1
6.4
2.5
35.0
11.3
13.8
16.4
56.2
11.2
33.0
30.0
1.0
33.2
39.8
19.1
261
308
1,632 1,622
890
1,150
2,623 3,282
1,130 1,276
171
201
956
1,277
389
519
697
806
153
185
106
140
17,915 22,360
3,914 4,936
18
-1
29
25
13
17
34
34
16
21
32
25
26
4.9
7.0
36.1 49.8
29.4 40.9
38.8 68.7
67.9 71.3
5.6
8.0
33.7 39.7
7.0
9.7
27.3 27.4
-1.6
4.4
0.3
3.5
384.4 460.4
96.1 91.5
8.2
65.0
58.9
89.9
102.7
11.8
54.4
16.4
34.4
7.1
5.6
547.8
138.8
1,172
4,330
1,081
308
1,095
914
4,918
1,218
262
382
1,200
4,660
1,285
315
1,310
995
4,500
1,400
280
395
2
8
19
2
20
9
-9
15
7
3
21.0 22.2
73.7 85.3
21.2 24.4
7.2
7.7
26.5 26.9
18.9 21.5
156.1 158.1
19.6 22.9
8.4
9.3
11.2
9.8
26.5
104.6
29.8
9.1
33.1
24.7
182.1
27.4
10.3
11.1
27 September 2017
13

Company
Marico
Nestle
Page Inds
Parag Milk
Pidilite Ind.
P&G Hygiene
Prabhat Dairy
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
Jubilant Life
Lupin
Sanofi India
Shilpa Medicare
Strides Shasun
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.
Ent.Network
Hind. Media
HT Media
Jagran Prak.
Music Broadcast
PVR
Siti Net.
Sun TV
Reco
Neutral
Neutral
Buy
Neutral
Neutral
Neutral
Not Rated
Buy
Neutral
CMP
TP
% Upside
(INR) (INR) Downside
317
355
12
7,072 6,160
-13
18,832 19,600
4
238
245
3
792
810
2
8,336 8,800
6
129
-
847
980
16
2,465 2,525
2
FY17
6.3
118.0
238.7
3.6
16.7
132.9
3.5
8.7
26.7
EPS (INR)
FY18E FY19E
6.8
8.2
115.1 133.6
294.7 398.4
9.1
12.5
18.1
20.6
151.6 176.0
3.5
6.4
9.9
14.0
34.5
51.5
P/E (x)
FY17 FY18E
50.5 46.5
59.9 61.5
78.9 63.9
66.1 26.1
47.3 43.8
62.7 55.0
36.6 37.2
97.5 85.6
92.2 71.4
46.5 42.0
22.8
24.8
20.5
18.0
33.8
33.4
36.4
24.2
32.6
14.2
15.6
16.2
71.2
31.8
17.8
17.7
31.4
40.5
28.3
19.4
38.3
23.2
23.6
17.6
40.5
33.9
33.1
13.0
15.5
29.8
74.5
18.2
NM
70.1
10.0
12.8
16.3
60.2
59.1
NM
31.0
24.1
25.6
22.7
15.8
35.5
26.5
27.4
28.6
29.7
67.5
14.3
14.3
52.3
30.8
14.0
24.3
30.3
26.9
19.2
33.7
30.9
23.9
25.9
15.4
31.9
30.6
25.1
6.9
12.5
25.0
75.3
15.7
NM
59.9
9.1
12.0
14.2
41.5
39.3
NM
27.1
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E
17.6 15.1 36.7 34.9
22.6 21.0 39.0 35.5
31.5 25.3 40.0 39.6
3.0
2.7
6.0
11.0
12.3 10.0 28.2 25.2
39.3 32.6 39.3 64.9
1.8
1.8
5.2
4.9
9.6
8.8
10.2 10.7
18.5 12.9 21.3 18.0
12.8 11.9 27.5 28.3
4.9
5.3
6.8
4.4
4.3
7.0
3.7
5.4
3.2
1.5
3.9
3.0
10.3
2.6
3.0
3.4
5.4
5.0
3.0
3.3
7.7
5.0
4.0
2.6
17.9
3.5
2.4
1.8
2.4
3.7
16.6
4.3
1.6
4.5
1.7
0.9
2.4
4.0
5.9
3.5
7.3
4.3
4.6
5.4
3.5
3.9
5.8
3.3
4.9
3.0
1.3
3.1
2.1
12.0
2.5
2.5
3.0
5.0
4.2
2.7
3.4
6.3
4.4
3.6
2.3
13.7
3.4
2.3
1.6
2.1
3.4
13.6
3.8
1.8
4.2
1.5
0.8
2.4
3.7
5.1
3.7
6.8
23.0
23.4
37.7
27.6
12.3
23.0
10.2
23.5
9.7
11.3
24.7
21.1
14.5
8.6
18.1
20.9
17.1
14.4
10.7
18.5
22.2
23.8
17.0
12.6
50.5
10.8
7.3
12.4
16.7
12.4
25.1
25.5
-12.0
6.7
19.0
7.1
17.6
11.2
10.4
-23.5
23.6
19.0
19.2
26.5
24.8
11.1
23.9
12.1
18.1
10.6
2.1
21.6
17.7
23.0
8.2
19.5
13.2
16.6
17.0
14.7
10.0
22.5
19.5
14.0
16.0
48.6
11.3
9.4
19.4
17.8
13.8
19.9
25.8
-5.3
7.2
17.3
6.9
16.5
9.3
14.0
-4.1
25.0
FY19E
37.7
38.1
43.1
13.3
23.5
62.8
8.5
13.6
20.3
29.3
20.4
20.5
25.9
22.1
14.5
26.3
13.2
19.4
14.3
4.9
20.9
18.8
30.9
12.2
19.6
16.0
18.1
20.4
20.2
14.7
20.7
21.5
16.3
16.8
46.8
12.4
12.4
25.4
18.6
15.4
35.2
26.6
0.7
10.7
17.3
6.4
17.4
12.4
18.2
6.2
28.8
Neutral
Neutral
Buy
Buy
Sell
Buy
Neutral
Neutral
Neutral
Buy
Neutral
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Not Rated
Neutral
492
1,879
1,199
709
344
474
578
962
2,367
147
613
117
2,448
511
658
1,005
4,056
567
912
507
499
1,279
510
1,830
1,606
850
330
555
520
720
2,400
220
775
200
2,500
430
905
1,125
4,820
805
1,300
515
-
1,350
4
-3
34
20
-4
17
-10
-25
1
49
26
71
2
-16
38
12
19
42
43
1
6
21.6 20.5
75.7 73.5
58.4 52.8
39.3 44.9
10.2
9.7
14.2 17.9
15.9 21.1
39.7 33.6
72.6 79.6
10.3
2.2
39.3 42.9
7.2
8.2
34.4 46.8
16.1 16.6
37.0 47.1
56.6 41.4
129.1 133.6
14.0 21.1
32.3 47.4
26.1 15.1
13.0 16.1
55.2 53.4
25.5
91.6
64.2
50.0
14.2
24.1
26.0
40.0
120.1
5.6
51.7
11.5
54.9
26.8
56.7
56.3
160.6
30.4
74.8
23.3
18.0
67.3
Buy
Not Rated
Neutral
Buy
Not Rated
Not Rated
173
4,148
1,288
225
109
263
212
-
1,214
272
-
-
23
-6
21
9.8
11.2
102.5 129.9
38.0 42.1
6.8
8.4
16.9
9.0
15.9
21.0
13.3
163.2
48.6
12.4
23.9
25.9
Buy
Buy
Neutral
Neutral
Buy
Neutral
Buy
Buy
Buy
Neutral
Neutral
76
372
88
801
259
95
176
387
1,213
25
771
106
450
90
928
350
90
225
469
1,628
32
860
39
21
2
16
35
-5
28
21
34
26
11
1.0
20.4
-8.6
11.4
25.9
7.4
10.8
6.4
20.5
-1.8
24.9
1.0
23.7
-2.7
13.4
28.3
7.9
12.4
9.3
30.9
-0.3
28.5
2.4
27.6
0.3
21.7
33.6
8.1
14.1
14.0
46.9
0.4
35.9
27 September 2017
14

Company
Zee Ent.
Aggregate
Metals
Hindalco
Hind. Zinc
JSPL
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
Reco
Buy
CMP
(INR)
525
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
630
20
23.1 14.7
18.9
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E FY19E
22.7 35.6
8.7
7.5
24.7 22.6
24.5
39.7 30.7
5.6
5.1
14.1 16.6 19.3
27.4
15.2
NM
16.4
20.9
12.4
NM
21.0
17.2
22.0
9.7
17.6
40.5
21.8
10.2
9.3
32.6
8.2
18.1
10.4
20.4
16.9
12.8
139.0
65.5
72.1
17.1
14.6
19.6
14.4
10.1
14.0
18.9
15.4
13.5
17.3
29.3
18.5
14.4
17.2
14.3
16.7
34.9
25.3
NM
25.3
36.6
11.8
13.5
NM
11.0
22.1
9.9
NM
13.3
10.0
14.5
9.6
15.0
22.2
17.2
9.1
7.6
28.7
12.8
12.5
10.4
16.6
14.5
11.5
93.9
55.7
60.2
14.8
14.1
17.1
14.6
11.3
12.8
16.4
14.9
12.2
15.0
24.5
18.5
13.1
16.0
14.4
16.6
89.2
21.0
NM
79.1
202.6
1.8
4.1
0.4
2.6
1.5
1.7
0.6
2.0
2.0
1.7
3.0
1.8
6.9
2.4
3.1
1.9
6.9
2.1
1.0
1.0
4.3
1.8
1.7
11.4
12.4
12.4
2.8
3.7
4.8
3.0
1.5
4.9
3.1
2.1
1.8
2.7
9.2
5.5
2.4
2.7
2.3
3.8
2.3
4.5
1.1
12.3
2.5
1.6
4.4
0.4
2.2
1.4
1.6
0.7
1.8
1.8
1.6
2.5
1.6
5.5
2.2
2.6
1.6
5.8
1.9
0.9
1.0
3.6
1.6
1.6
10.5
11.3
11.3
2.5
3.2
4.1
2.7
1.4
3.8
3.0
2.2
1.7
2.6
7.4
5.9
2.2
2.7
2.0
3.8
2.3
3.9
1.3
10.7
2.5
7.4
24.4
-7.9
17.3
7.2
12.8
-6.7
9.7
15.7
7.6
32.4
9.6
17.8
11.6
32.4
21.2
21.0
31.4
5.7
10.1
23.2
11.6
13.3
8.2
20.6
17.2
16.2
27.5
26.5
22.0
14.3
40.4
16.8
13.2
13.7
17.0
37.1
32.6
18.4
16.9
17.2
22.9
6.7
16.2
-1.6
132.2
6.9
14.3
31.5
-4.9
21.3
6.5
15.2
-9.1
14.2
18.6
11.2
28.4
11.3
27.6
13.2
31.0
22.5
21.9
15.5
7.5
9.4
23.7
12.1
13.4
11.1
21.3
18.9
16.6
24.9
25.7
19.6
13.0
33.3
17.3
14.5
14.4
17.9
33.5
31.1
17.4
16.1
15.0
22.8
2.5
19.8
-17.3
14.5
1.2
15.4
38.0
0.6
20.8
7.7
15.6
-5.3
20.4
16.2
14.0
25.1
12.4
27.4
14.2
24.2
17.5
20.9
17.0
8.0
10.9
25.5
12.1
13.1
14.0
22.2
19.6
17.3
23.8
23.1
19.3
14.2
28.3
20.1
16.2
15.4
20.7
32.2
33.5
16.9
16.1
17.9
21.9
3.8
19.4
-21.7
33.6
2.8
Buy
Neutral
Buy
Buy
Neutral
Buy
Sell
Buy
Neutral
234
300
138
242
77
123
57
318
654
310
301
194
297
63
180
30
361
669
32
0
40
23
-18
46
-47
13
2
8.6
19.7
-20.9
14.8
3.7
10.0
-6.2
15.1
37.9
19.8
22.2
-15.8
21.9
3.5
12.4
-7.7
23.9
65.1
24.5
29.3
2.0
25.7
4.2
12.1
-4.2
37.4
64.3
Buy
Sell
Sell
Neutral
Buy
Buy
Neutral
Sell
Buy
Buy
Buy
Neutral
471
398
824
192
416
399
1,433
121
349
172
232
819
640
346
691
171
583
558
1,152
113
316
195
275
941
36
-13
-16
-11
40
40
-20
-6
-9
14
18
15
48.3
22.6
20.4
8.8
40.7
43.0
44.0
14.8
19.3
16.4
11.4
48.3
49.1
26.5
37.2
11.1
45.9
52.6
49.9
9.4
27.9
16.5
14.0
56.5
51.6
31.3
46.1
13.3
42.9
46.9
56.3
11.7
31.1
19.7
17.9
62.8
Sell
Neutral
1,391
592
850
565
-39
-4
10.0
9.0
14.8
10.6
20.7
12.6
Buy
Neutral
Neutral
Buy
Neutral
Buy
Neutral
Neutral
Neutral
Buy
Buy
Neutral
Buy
Neutral
Buy
524
873
268
906
120
779
471
600
514
651
824
2,475
446
290
745
600
950
250
1,050
140
880
450
610
540
750
996
2,350
490
270
950
14
9
-7
16
17
13
-4
2
5
15
21
-5
10
-7
27
30.6 35.4
59.8 61.8
13.7 15.7
62.9 62.2
11.9 10.6
55.5 60.8
24.9 28.7
38.9 40.3
38.0 42.3
37.7 43.3
28.1 33.7
133.4 133.6
30.9 34.0
16.9 18.1
52.1 51.9
41.9
65.9
16.5
67.2
13.1
65.1
32.9
43.0
48.7
52.0
39.8
147.7
36.8
19.1
70.0
Buy
Buy
Buy
Buy
387
376
76
689
490
480
110
775
27
28
45
12
11.1
14.9
-1.1
27.2
4.3
17.9
-10.9
8.7
6.6
20.4
-11.3
26.1
27 September 2017
15

Company
Reco
Coal India
Buy
CESC
Buy
JSW Energy
Sell
NTPC
Buy
Power Grid
Buy
Tata Power
Sell
Aggregate
Others
Arvind
Neutral
Avenue
Neutral
Supermarts
Bata India
Under Review
BSE
Neutral
Castrol India
Buy
Century Ply.
Neutral
Coromandel Intl Buy
Delta Corp
Buy
Dynamatic Tech Buy
Eveready Inds.
Buy
Interglobe
Neutral
Indo Count
Neutral
Info Edge
Buy
Inox Leisure
Sell
Jain Irrigation
Under Review
Just Dial
Neutral
Kaveri Seed
Buy
Kitex Garm.
Buy
Manpasand
Buy
MCX
Buy
Monsanto
Buy
Navneet Education Buy
Quess Corp
Buy
PI Inds.
Buy
Piramal Enterp.
Buy
SRF
Buy
S H Kelkar
Buy
Symphony
Sell
Team Lease Serv. Buy
Trident
Buy
TTK Prestige
Neutral
V-Guard
Neutral
Wonderla
Buy
CMP
(INR)
260
1,012
73
167
211
80
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
305
17
14.9 19.8
22.0
1,360
34
51.9 88.9
99.3
49
-33
3.8
3.4
2.7
211
26
12.0 13.3
15.7
262
24
14.2 17.4
20.6
71
-11
7.4
7.3
7.3
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E
17.4 13.2
6.6
6.3
37.8 47.6
19.5 11.4
1.3
1.2
6.5
10.6
19.0 21.6
1.2
1.1
6.3
5.3
14.0 12.5
1.4
1.3
10.5 10.9
14.8 12.1
2.2
2.0
16.2 17.3
10.8 11.0
1.8
1.7
17.1 15.8
15.5 12.7
2.2
2.1
14.5 16.4
29.9
145.6
51.1
23.9
26.7
28.3
25.3
65.3
32.2
23.3
22.7
7.9
67.6
66.6
17.2
21.7
27.7
11.5
75.0
42.7
28.7
21.5
82.4
22.9
37.0
17.9
35.6
56.3
42.3
15.1
47.8
52.0
49.4
28.6
87.8
43.9
23.2
26.3
25.0
17.4
34.0
19.3
22.0
16.3
11.5
48.7
27.6
12.6
20.5
15.5
9.7
47.3
36.1
23.6
19.1
43.2
25.1
25.8
19.1
34.0
37.9
44.6
12.0
45.8
41.5
28.9
2.7
18.1
6.7
2.0
30.2
7.7
4.2
5.0
4.4
7.5
18.7
2.4
6.5
3.9
1.5
2.9
3.6
3.1
4.7
4.0
8.1
5.4
11.2
6.5
3.5
2.8
4.6
20.9
7.4
1.8
8.6
12.4
4.5
2.5
15.9
6.0
2.0
27.2
6.3
3.7
3.4
3.6
6.2
16.6
1.9
5.9
3.4
1.4
2.6
3.8
2.5
4.4
3.8
7.3
4.6
4.8
5.4
3.2
2.5
4.2
18.4
6.3
1.6
7.9
10.1
4.0
10.3
17.9
9.1
19.3
FY19E
50.5
10.8
4.2
11.9
17.8
14.2
17.2
12.0
23.0
370
1,117
690
978
364
246
420
199
2,175
300
1,044
102
1,060
222
96
379
528
214
953
1,061
2,476
167
824
763
2,683
1,535
258
1,331
1,643
100
6,312
186
345
375
882
-
1,100
489
323
523
243
3,334
358
1,312
129
1,130
240
-
465
738
394
926
1,230
3,295
215
990
894
3,044
1,648
298
1,288
1,990
114
5,281
167
393
1
-21
12
34
31
24
22
53
19
26
26
7
8
23
40
84
-3
16
33
29
20
17
13
7
15
-3
21
14
-16
-10
14
12.4
7.7
13.5
41.0
13.6
8.7
16.6
3.1
67.6
12.9
46.0
13.0
15.7
3.3
5.5
17.5
19.1
18.6
12.7
24.8
86.2
7.8
10.0
33.4
72.6
85.9
7.2
23.7
38.8
6.6
132.1
3.6
7.0
12.9
12.7
15.7
42.2
13.9
9.8
24.1
5.9
112.9
13.6
63.9
8.9
21.8
8.0
7.6
18.5
34.0
22.1
20.2
29.4
105.1
8.7
19.1
30.4
104.1
80.2
7.6
35.1
36.8
8.3
137.8
4.5
11.9
18.6
17.6
19.4
44.6
14.0
12.9
29.0
8.1
166.7
16.3
93.7
10.8
24.7
12.0
10.0
21.1
41.0
26.2
30.9
40.7
126.7
10.8
27.8
35.8
144.6
103.0
9.9
42.9
56.0
10.4
176.1
6.0
16.0
13.9 14.4
15.8
8.3
8.5
7.7
115.2 108.9 99.2
31.1 27.7
29.6
17.5 22.5
23.4
8.1
12.5
12.9
15.1 20.7
24.3
37.7 30.8
30.1
86.2 107.5 137.7
34.8 18.6
18.3
10.2 12.7
13.1
5.9
12.5
16.2
8.6
11.7
14.8
14.8 13.4
13.7
13.6 23.3
27.4
29.8 28.6
27.6
7.3
8.5
13.5
9.9
10.7
13.9
31.6 32.5
34.5
26.8 26.0
27.4
19.0 15.6
15.0
32.8 23.4
22.9
9.8
13.0
16.4
16.6 13.7
16.0
13.7 12.9
15.2
43.3 51.6
54.5
19.2 15.3
19.5
13.0 14.5
16.1
19.5 18.0
20.7
27.4 26.9
28.8
9.5
14.8
17.5
27 September 2017
16

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.
Capital First
Cholaman.Inv.&Fn
Dewan Hsg.
GRUH Fin.
HDFC
Indiabulls Hsg
L&T Fin.Holdings
LIC Hsg Fin
Manappuram
M&M Fin.
Muthoot Fin
PFC
Repco Home
REC
STF
Shriram City Union
1 Day (%)
-1.9
0.8
-0.1
4.2
1.6
-0.5
-0.5
2.4
3.5
-1.1
0.8
-1.1
-0.1
-0.8
0.7
0.9
1.8
-0.4
0.3
0.4
-0.4
1.1
1.1
-0.6
-1.9
-0.5
-0.8
1.4
0.2
0.1
0.2
0.7
0.7
0.0
0.2
-0.5
-0.3
0.5
2.5
-0.2
0.3
-1.9
6.0
0.5
-0.8
3.2
1.9
-0.3
3.5
0.1
0.8
-1.9
-1.5
-3.7
2.5
0.1
1M (%)
-6.9
10.5
11.0
11.0
-0.8
1.6
0.1
5.6
5.1
1.7
-2.3
-9.4
-2.7
3.7
7.0
9.2
0.9
-1.0
-0.7
5.1
1.5
-5.1
3.8
1.0
-9.2
2.1
-0.2
4.3
4.7
-0.2
-0.2
-4.0
-2.6
-10.9
0.9
-4.9
-8.0
-4.0
4.4
6.3
5.1
-6.1
17.5
0.9
-0.9
2.6
12.3
-5.8
4.0
-0.9
7.8
4.3
-6.9
0.2
3.4
-5.7
12M (%)
-28.8
39.1
5.0
35.8
-6.0
41.1
25.0
71.8
7.1
9.3
-9.7
23.7
41.7
-23.3
86.5
-6.8
46.2
-12.4
53.7
38.1
18.2
-21.9
40.5
-8.3
26.2
68.8
42.7
45.8
-14.4
22.0
10.6
-25.5
25.8
-3.6
-2.2
2.5
-7.5
63.9
10.1
7.4
-5.0
91.2
55.0
23.1
52.8
113.3
9.2
2.2
14.1
29.8
3.7
-26.6
29.0
-13.1
-2.1
Company
Capital Goods
ABB
Bharat Elec.
BHEL
Blue Star
CG Cons. Elec.
CG Power & Inds Sol.
Cummins
GE T&D
Havells
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
Prabhat Dairy
United Brew
United Spirits
Healthcare
Alembic Phar
Alkem Lab
Ajanta Pharma
Aurobindo
Biocon
Cadila
Cipla
1 Day (%)
0.2
0.7
0.2
-1.8
1.4
-1.6
2.4
0.0
0.2
2.6
-0.4
-1.3
0.5
0.0
0.0
2.9
2.1
1.7
-0.7
0.0
-1.0
-0.1
-0.6
2.2
1.3
0.4
-1.9
0.2
0.1
1.6
0.1
-2.0
1.2
-0.4
-1.4
0.5
-2.0
-0.6
-2.3
-0.1
0.5
-0.5
-0.8
2.1
3.1
-1.9
0.3
-0.5
-1.4
0.7
1.8
2.6
0.7
0.8
0.5
-1.5
0.2
1M (%)
6.0
-3.0
0.2
0.6
-1.8
-2.6
3.2
2.3
0.9
4.3
2.5
8.5
4.9
4.7
-1.5
-0.7
0.0
-0.4
-5.2
-8.3
-6.9
0.0
-0.2
-3.5
-6.1
-5.8
5.0
1.9
-3.0
5.4
-0.6
3.2
2.7
-1.2
2.8
2.0
-0.1
-6.9
3.3
-6.9
1.6
0.5
7.2
9.4
-0.7
-4.4
3.3
-2.2
4.7
-4.0
-3.4
5.4
-2.8
-3.3
1.8
-4.2
0.8
12M (%)
25.1
44.3
-10.7
38.7
33.5
-3.1
2.7
11.9
19.9
145.9
18.5
-40.4
4.2
41.1
2.5
3.1
10.5
37.2
2.2
1.6
28.9
44.5
39.8
15.4
15.4
-20.0
16.7
-23.5
-0.4
5.4
-0.6
-0.7
26.7
11.0
9.5
-6.9
14.2
-19.5
36.4
5.6
11.2
13.5
8.7
26.7
-19.3
14.0
21.3
12.7
-6.6
7.8
-28.1
2.5
-41.3
-15.4
6.7
20.6
-4.3
27 September 2017
17

MOSL Universe stock performance
Company
Divis Lab
Dr Reddy’s
Fortis Health
Glenmark
Granules
GSK Pharma
IPCA Labs
Jubilant Life
Lupin
Sanofi India
Shilpa Medicare
Strides Shasun
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.
Ent.Network
Hind. Media
HT Media
Jagran Prak.
Music Broadcast
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
Titan Co.
1 Day (%)
1.0
-2.1
0.3
-0.1
-2.3
0.9
3.1
0.6
1.4
1.5
-0.4
0.6
0.3
3.4
3.7
0.9
1.1
0.6
0.5
-0.5
0.7
-0.3
1.7
3.8
-0.6
-0.4
0.6
1.4
-0.7
0.2
-0.8
-2.0
-0.4
2.3
2.6
2.9
2.3
3.0
2.2
0.0
3.8
2.2
-3.4
0.0
0.7
-1.7
-2.1
0.3
-1.5
-2.1
5.4
4.3
1.8
-0.2
0.7
-1.8
1M (%)
42.9
13.4
-3.0
-0.8
-9.9
2.7
23.4
-9.2
1.4
1.2
0.4
-2.7
5.0
12.4
4.2
5.4
0.8
1.6
-3.4
-4.3
-4.3
-4.0
-0.3
-5.2
-5.4
-5.4
3.8
0.8
4.0
-4.1
2.4
8.2
2.4
0.9
5.3
2.1
-1.5
10.3
0.7
-6.8
6.6
2.4
-7.3
3.8
4.5
-0.3
-10.7
-6.7
14.4
-3.4
23.2
7.7
2.7
4.5
0.0
-2.6
12M (%)
-27.9
-25.8
-14.8
-33.9
-3.5
-12.5
-13.7
3.8
-32.8
-4.7
4.2
-12.8
-33.8
-0.6
-22.4
-9.2
-22.2
21.0
-11.6
-21.0
35.5
-21.9
-6.7
12.9
-2.2
-8.5
16.0
-8.4
0.3
-25.3
55.1
-1.1
53.1
31.1
69.3
37.8
67.2
16.2
18.2
88.7
76.6
13.7
40.5
36.6
30.5
45.6
34.8
85.8
36.6
15.4
2.7
35.0
47.7
45.1
46.3
Company
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
Avenue Super.
Bata India
BSE
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.
Quess Corp
SRF
S H Kelkar
Symphony
Team Lease Serv.
Trident
TTK Prestige
V-Guard
Wonderla
1 Day (%)
3.2
0.1
1.5
1.1
3.3
0.5
1.3
-1.3
1.5
2.2
1.2
-1.3
-1.2
-0.5
-1.4
-0.6
-3.5
-0.2
0.4
1.3
2.2
-0.1
0.5
0.3
-2.3
1.1
8.5
-2.7
-0.1
-0.5
2.4
0.0
3.5
0.8
0.6
-0.2
-0.5
5.0
0.1
-0.5
-1.5
3.2
0.6
-1.3
0.4
-0.3
-0.9
2.0
-0.8
-0.7
0.0
3.2
-1.2
3.0
4.1
-0.1
1.6
0.0
1M (%)
-1.3
0.7
-2.2
-0.7
4.6
5.5
0.7
-0.8
3.5
5.7
0.8
-0.8
4.2
0.2
-4.8
-10.5
-1.9
-15.6
7.3
7.9
5.8
14.3
-1.4
-4.2
1.0
1.8
12.3
3.3
-2.0
-6.7
-5.6
-2.0
9.6
1.8
1.4
-12.1
-6.8
13.4
-4.8
0.1
4.8
-2.4
-6.0
15.2
3.8
1.2
6.7
4.7
0.5
0.0
5.8
4.4
5.6
11.7
15.2
-1.1
2.1
2.6
12M (%)
10.2
10.9
39.0
-12.5
-7.7
22.2
-5.6
12.5
16.3
8.2
9.0
3.1
-0.4
21.2
-26.6
20.9
3.0
-5.6
31.5
-21.7
58.3
-6.0
9.6
20.3
5.6
8.9
37.5
-22.0
-2.6
71.3
21.9
-27.2
12.0
11.1
-33.8
24.3
-17.0
1.0
-16.7
43.3
-33.9
29.5
-1.0
2.7
65.6
-9.4
42.1
50.0
-14.1
-18.0
16.3
52.8
88.3
31.9
38.9
-11.2
27 September 2017
18

THEMATIC/STRATEGY RESEARCH GALLERY

REPORT GALLERY
RECENT INITIATING COVERAGE REPORTS
Rs

DIFFERENTIATED PRODUCT GALLERY

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or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an offer document or solicitation of
offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or
appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document should make such investigations
as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to
determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative
products as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the
views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time
without any prior approval. MOSL, its associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities
mentioned in this document. They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities
functions as a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed therein. This document is
being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not
directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would
be contrary to law, regulation or which would subject MOSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to
certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees, agents or
representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information.
The
person accessing this information specifically agrees to exempt MOSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or
employees responsible for any such misuse and further agrees to hold MOSL 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.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring
Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id:
na@motilaloswal.com,
Contact No.:022-30801085.
Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;
MSE(F&O): INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset
Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth
management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities
Products. * Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
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