Morning India: S H Kelkar & Co.: Structurally secure; but near-term headwinds

12 March 2018

Market snapshot

Equities - India

Chg .%

Sensex

33,307

-0.1

Nifty-50

10,227

-0.2

Nifty-M 100

18,773

-0.6

Equities-Global

Chg .%

S&P 500

2,787

1.7

Nasdaq

7,561

1.8

FTSE 100

7,225

0.3

DAX

12,347

-0.1

Hang Seng

12,431

0.8

Nikkei 225

21,469

0.5

Commodities

Chg .%

Brent (US$/Bbl)

2.7

Gold ($/OZ)

1,323

0.1

Cu (US$/MT)

6,938

2.0

Almn (US$/MT)

2,100

0.7

Currency

Chg .%

USD/INR

65.2

0.0

USD/EUR

1.2

0.0

USD/JPY

106.8

0.6

YIELD (%)

1MChg

10 Yrs G-Sec

7.7

0.01

10 Yrs AAA Corp

8.3

0.01

Flows (USD b)

9-Mar

MTD

FIIs

0.1

0.3

DIIs

0.0

Volumes (INRb)

9-Mar

MTD*

Cash

292

326

F&O

4,815

9,237

Note: YTD is calendar year, *Avg

YTD.%

-2.2

-2.9

-11.2

YTD.%

4.2

9.5

-6.0

-4.4

6.2

-5.7

YTD.%

-2.3

1.6

-3.7

-6.9

YTD.%

2.0

2.5

-5.2

YTDchg

0.3

0.4

YTD

0.3

2.8

YTD*

395

7,996

Today’s top research idea

S H Kelkar & Co.: Structurally secure; but near-term headwinds



Fire in BASF’s German chemical plant, China resorting to factory shutdowns in a

move to regulate environmental laws, and floods in the US have caused several

supply-side disruptions for flavors and fragrances (F&F) players like S H Kelkar

(SHKL), with sourcing of raw materials like orange oil, citral and Isoprenol being

severely affected. BASF alone accounts for 20-25% of SHKL’s RM requirements.



While SHKL maintains a large stock of inventory, severe supply constraints

could exert pressure on margins over the next 2-3 quarters.



We, however, believe that margin compression will be partly offset by the

shifting of production from the Netherlands facility to Vapi (likely to be

completed by July/August 2018).

We cut our FY19 EBIDTA estimate by 7% and

PAT estimate by 8%.

Research covered

Cos/Sector

Tata Motors

S H Kelkar & Co.

Financials-NBFC

Key Highlights

JLR’s Feb-2018 wholesales below estimate at 56.9k units

Structurally secure; but near-term headwinds

MFI: Demon worries behind; Growth/asset quality back on track

Piping hot news

India will generate 100 GW of solar power by 2022



Prime Minister Narendra Modi has set a target of achieving 100 GW (gigawatt)

of solar power by 2022, out of the total 175 GW the country plans to produce

from renewable sources. This was announced at the International Solar …

Chart of the Day: Total flows into domestic MFs in FY18YTD at INR3.3t; equity schemes

account for 49%

Net inflows received by MFs under various categories (INR b)

Research Team (Gautam.Duggad@MotilalOswal.com)

Investors are advised to refer through important disclosures made at the last page of the Research Report.

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

In the news today

Kindly click on textbox for the detailed news link

Jet Airways-Air France-KLM said

to be bidding for Air India

A strong buzz in the market has it

that Jet Airways, its European

carrier combine partners Air

France-KLM and its Amercian

partner carrier Delta Air Lines are

bidding for national carrier Air

India which has been put on the

block by the government. Three

executives at Jet Airways …

Tata Motors readies Rs 3,000 crore commercial vehicle ride

Tata Motors will invest more than Rs 3,000 crore in its commercial vehicle

business unit over the next two years to develop new products, upgrade

existing models to conform with upcoming emission standards and

debottleneck production processes to meet increasing demand. “The bulk

of this investment will go into development of new products, introduction

of those new products and debottlenecking required in specific areas due

to this increase in demand,” Girish Wagh, who heads Tata Motors

Commercial Vehicle Business Unit.

Banks want RBI to relax revised

framework for NPA resolution

The Indian Banks’ Association has

written to the Reserve Bank of

India requesting relaxation in its

revised framework for resolution

of stressed assets, emphasising

that the banking regulator’s zero

tolerance towards even a day’s

delay in loan repayment could

seriously jeopardise lending to the

infrastructure sector, which is a

priority area for the government.

Motor vehicle 3rd-party cover

premiums to become cheaper

Insurance regulator Irdai proposed

reduction in premium on insuring

small private cars and certain

types of two-wheelers, but plans

to raise the same for several

categories of goods vehicles. The

Insurance Regulatory and

Development Authority of India

(Irdai) has released exposure draft

on premium rates for motor third-

party (TP) insurance covers for …

Now an ‘action plan’ in place

of policy for electric vehicles

A month after India dropped the

idea of an electric vehicle policy,

the government’s think-tank NITI

Aayog has tasked at least seven

ministries with framing

guidelines to encourage the use

of such vehicles. Once framed,

the NITI Aayog will put these

guidelines together as an action

plan for promoting the use of

electric vehicles (EVs), four …

India’s SpiceJet, CFM Reach

$12.5 Billion Engine, Service

Deal

One of India’s fastest-growing

airlines has signed a $12.5 billion

deal with CFM International Inc. for

engines and a 10-year services

contract for an incoming fleet of

more than 150 Boeing Co. 737

MAX aircraft. SpiceJet Ltd. has

agreed to buy the LEAP-1B engines

and spare engines from CFM,

which is a joint venture between …

12 March 2018

JSW Steel to raise $1 billion

via overseas bonds to acquire

distressed assets

JSW Steel Ltd is tapping overseas

bond investors to raise $1 billion

to fund its plan to buy distressed

assets in India, two people

directly aware of the plans said.

Sajjan Jindal-controlled JSW has

hired investment banks JP

Morgan, Citigroup and Deutsche

Bank to manage the fund raising,

the people cited above said on

condition of anonymity. …

Tata Motors

BSE SENSEX

33,307

S&P CNX

10,227

9 March 2018

Update

| Sector:

Automobiles

CMP: INR342

TP: INR515(+51%)

Buy

JLR’s Feb-2018 wholesales below estimate at 56.9k units

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 (%)

Land Rover volumes increase by 5.7% YoY; Jaguar volumes up by 0.9% YoY

TTMT IN

3,396.6

487 / 341

-6/-14/-42

1160.6

17.8

3586.0

63.6



Financials Snapshot (INR b)

Y/E March

2018E 2019E 2020E

Net Sales

2,970 3,354 3,576

EBITDA

375.0 528.4 554.5

94.9 196.6 198.7

Adj. EPS INR

28.0

57.9

58.5

EPS Gr. (%)

41.1 107.1

1.1

BV/Sh. (INR)

208.9 268.1 327.8

RoE (%)

RoCE (%)

P/E (x)

P/BV (x)

14.7

8.1

12.2

1.6

24.3

12.8

5.9

1.3

19.6

10.7

5.8

1.0



Shareholding pattern (%)

As On

Dec-17 Sep-17 Dec-16

Promoter

36.4

34.7

DII

17.1

15.3

14.8

FII

21.4

22.6

24.2

Others

25.1

25.8

26.2

FII Includes depository receipts

Stock Performance (1-year)

Tata Motors

Sensex - Rebased

620

540

460

380

300



JLR’s wholesale volumes grew 4.3% YoY (+14.7% MoM) to 56.9k units

(including China JV’s 5,197 units) in Feb-18, as against our estimate of 62k

units. Jaguar volumes in the month increased marginally by 0.9% YoY to 16,245

units (est. of 17k units). Land Rover (LR) volumes rose 5.7% YoY to 40.7k units

(est. of 45k units).

For YTDFY18, JLR wholesales grew 5.3% YoY to 557.3k units, led by an 8.4%

increase in LR sales to 402k units, partly offset by a 1.9% decline in Jaguar sales

to 155k units.

JLR’s retail volumes declined 2.6% YoY (-18.7% MoM) to 39.9k units. LR sales

fell 1.5% YoY to 28k units, while Jaguar sales declined 5.2% YoY to 11.6k units.

XF volumes grew 15.2% YoY, while XE and F-Pace volumes fell 42% and 21%

YoY, respectively. Retails of E-Pace came in at 1.9k units (1.5k units in Jan-18).

LR’s retail volumes declined by 1.5% YoY, as RR Sport and RR Evoque volumes

fell 26% and 34%, respectively, while Discovery volumes rose 86% YoY. RR

Velar clocked volumes of 5.3k units.

Region-wise, China volumes grew 3.3% YoY to 8.8k units, reflecting the

introduction of long wheelbase Jaguar XFL and XE. Retails in the UK and Europe

markets declined 15.2% and 6.9%, respectively, while those in the US fell 2.2%

YoY.

Mr Andy Goss, Jaguar Land Rover Group Sales Director said, “The

Company is

continuing to see weaker market conditions in Europe and the UK in

particular, largely reflecting diesel uncertainty.”

The stock trades at 5.9x/5.8x FY19E/20E consolidated EPS. Maintain

Buy

with a

target price of INR515 (Mar-20 SOTP-based).

12 March 2018

S H Kelkar and Co.

BSE SENSEX

33,307

S&P CNX

10,227

12 March 2018

Update

| Sector: Media

CMP: INR275

TP: INR318(+16%)

Buy

Structurally secure; but near-term headwinds

We met SHKL’s management to understand recent business developments and

growth opportunities. Key takeaways:

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 (%)

Supply-side disruptions from Germany, US and China to pressurize margins

SHKL IN

145

333 / 237

0/-1/-22

39.8

0.6

58.0

42.4



Financials Snapshot (INR b)

FY18E FY19E FY20E

Y/E Mar

10.6

12.3

14.1

Net Sales

1.9

2.3

2.9

EBITDA

1.1

1.4

1.8

PAT

7.9

9.7

12.2

EPS (INR)

9.1

22.4

26.6

Gr. (%)

61.4

68.3

77.0

BV/Sh (INR)

13.4

14.9

16.9

RoE (%)

19.8

21.8

24.8

RoCE (%)

34.8

28.4

22.5

P/E (x)

4.5

4.0

3.6

P/BV (x)

Shareholding pattern (%)

As On

Dec-17 Sep-17 Dec-16

Promoter

57.6

DII

2.0

2.5

FII

20.6

20.9

17.4

Others

19.8

19.5

22.4

FII Includes depository receipts

Stock Performance (1-year)

S H Kelkar & Co.

Sensex - Rebased

370

320

270

220

Fire in BASF’s German chemical plant, China resorting to factory shutdowns in a

move to regulate environmental laws, and floods in the US have caused several

supply-side disruptions for flavors and fragrances (F&F) players like S H Kelkar

(SHKL), with sourcing of raw materials like orange oil, citral and Isoprenol being

severely affected. BASF alone accounts for 20-25% of SHKL’s RM requirements.

While SHKL maintains a large stock of inventory, severe supply constraints

could exert pressure on margins over the next 2-3 quarters.

We, however, believe that margin compression will be partly offset by the

shifting of production from the Netherlands facility to Vapi (likely to be

completed by July/August 2018).

We cut our FY19 EBIDTA estimate by 7% and

PAT estimate by 8%.

CFF acquisition brings in cross-selling opportunities



SHKL acquired a 51% stake (for EUR12m) in Creative Flavors and Fragrances

SpA (CFF), an Italian F&F player headquartered in Milan, Italy with significant

presence in fine fragrances and fabric care. CFF acquisition will help SHKL to

bridge the gaps in its existing portfolio.

CFF acquisition will provide a gamut of premium Italian products that SHKL

intends to introduce in emerging markets like India, Indonesia and Middle East.

In Italy, the company will use CFF as a front-ended platform to sell fabric care

products based on SHKL-developed encapsulation technology.

New launches in FMCG to pave way for improved growth



There has been continued focus on new launches and widening of portfolio in

the FMCG space to tap new segments and categories. This will continue

benefiting SHKL, which has a 23% market share in fragrances and 3-4% market

share in flavors.

Changing consumer preferences necessitate strong R&D capabilities to develop

new F&F formulations. SHKL continues to reinvest any expansion in margins

beyond 20% into R&D activities in order to drive revenues further.

Maintain revenue estimates, cut EBIDTA for FY19E; Maintain Buy



We maintain our revenue estimates, led by a rebound in FMCG demand and

available cross-selling opportunities post CFF acquisition. However, we cut

EBIDTA estimates for FY19 owing to raw material supply disruptions post

Germany-BASF blast, Florida storms and Chinese plant shutdowns in 2HFY17.

We value the stock at 26x FY20E consol. earnings of INR12.2/share and

reiterate our

Buy

rating with a revised price target of INR318/share.

12 March 2018

Sector Update | 12 March 2018

Financials - NBFC

Technology

State-wise portfolio at risk

(PAR, %)

States

Total

PAR>30

0.73

1.20

1.43

2.42

1.90

1.62

2.72

4.19

5.38

7.17

8.67

14.08

13.76

5.73

14.08

6.00

PAR>180

0.34

0.49

0.70

0.85

0.88

0.92

1.79

2.77

3.19

3.98

4.14

7.20

7.30

7.95

10.28

3.50

MFI: Demon worries behind; Growth/asset quality back on track

We attended the ‘NBFC & MFI Summit’ organized by The Economic Times and

Northern Arc, where participants across the financial services space (banks,

NBFCs, MFIs, SFBs, PEs, VCs, etc.) provided valuable insights into the crucial non-

banking financial companies (NBFCs) and microfinance institutions (MFIs)

segments of the economy. Encouragingly, industry players exhibited renewed

confidence on growth and asset quality, with many agreeing that

demonetization/GST worries are now a thing of the past and that the industry is

getting back on track. Moreover, diversification strategy is now inclined toward

liability and usage of technology, compared to the earlier focus on assets and

regional presence. Most players believe that MSME lending is natural extension to

MFI loans and that it is a big untapped opportunity. The entry of banks (MFIs

becoming BCs) is causing a shift in the competitive dynamics of the industry.

Optimism on growth and asset quality was very high.

Bonds have been preferred funding source for NBFCs over last few years

Sector experts stated that

NCDs have incrementally become the preferred funding

source for NBFCs over the past few years. Foreign portfolio investors (FPIs) have

been incrementally funding lower-rated NBFCs over the last few years.

Sector

experts argue that, raising sizeable equity in early stages of business cycle – coupled

with liquidity buffer and credit buffers – is likely to drive rating upgrade.

Gross AUM of top-10 NBFC’s

MFI

(INR b)

MFI

BFIL

Satin

CreditAccess

Grameen

Spandana

Muthoot

Asirvad

Annapurna

Arohan

Sonata

Fusion

Total NBFC-MFI AUMs

% of top 10 MFI

AUMs

GLP

114.7

43.0

39.4

27.2

25.0

21.1

16.4

15.4

12.9

12.8

427.0

76.8

PE players have been showing increasing interest in NBFCs

Private equity (PE) players have been incrementally funding NBFCs as they see

them as a sound investment that provides last mile delivery of financial services at

low operational cost.

Sector experts stated that small finance banks will have higher

regulatory costs and manpower costs than NBFCs. They also stated that going public

early in the growth curve helps in building a great franchise.

Collaboration between technology and financial services will increase in

near term

Sector experts argue that

taxation of NBFCs and NBFC-MFIs should be at par with

banks – just like the recognition of NPAs.

In the near term, technology will be an

enabler, not a competitor to present architecture of financial services.

Credit

Bureau scores will help in the pre- and post-customer acquisition process.

Talent

mobility is high in NBFCs, with people from pedigreed institutions joining NBFCs.

Loan pricing likely to move to risk-based pricing due to data analytics

Data analytics is being used for cross-selling of loans and services effectively. Sector

experts stated that

NBFCs will move to risk-based pricing in the near term.

GST

network will make MSME lending easy and underwriting cheaper. Participation in

bond markets will increase in the near term due to regulatory intervention.

Risk

premium on NBFC bonds has come down from 450bp to 150bp in the last 10 years.

12 March 2018

Financial disruption by digital footprints to drive financial inclusion

Sector experts stated that

technology can lead to agility in NBFCs through product

innovation and integration across systems. However, they opined that technology

should be seamless through the lifecycle of loans.

As of FY17, 27% of first-time

borrowers of MFIs go back to banks and NBFCs for further lending, making formal

penetration of credit stronger.

Use of automation driving down cost of risk assessment

Sector experts argued that cost of branch-based model will be mitigated by

paperless processes.

Cost of loan origination will be lowered by automation of the

origination process. Risks arising from dealing with customers with no prior credit

history can be mitigated by psychometric checks.

With emergence of technology

and improved capabilities in big data, we might see emergence of completely new

financing models.

MSME lending the natural way ahead for MFIs

About five quarters after demonetization, MFIs are now gradually evolving from

their legacy asset quality issues. With most MFIs having recognized the component

of event risk, two important takeaways noted are a) microfinance loans have to be

priced for higher risk, even when the credit environment is healthy and b)

diversification has benefitted players that have reduced their exposure to

microfinance over the years. This holds especially true for SFBs like Equitas, which

has reduced microfinance to 32% of AUMs. Most experts agreed that for

microfinance companies, the most natural segment to diversify into individual

lending is MSME financing.

12 March 2018

In conversation

1. BLUE STAR : FY19 room ac market to grow 15-20%; B

Thiagarajan, Managing Director



It is a festival time for all the air-conditioner manufacturers. Excited about the

summer. Plan to invest about INR 55 cr in the forthcoming summer season.

Plan to increase exclusive stores to 200 by FY19 end.

52% of company’s room air conditioner sales are from smaller towns.

Market would have grown by around 12 percent. Company’s growth should be

somewhere around 17-18 percent.

Company will grow around 500 basis points (bps) more than the market to end

with a market share of 11.5 percent.

The expected growth for the summer season is around 20 percent and one

should aim to grow around 30-40 percent during summer. Estimate that room

air-conditioner market should grow anywhere between 15-20 percent for FY19.

Will increase digital advertising spend by 50% going ahead.

Do not think company has ever been as well prepared as this particular year.

2. SBI : To make further provision for NCLT accounts in Q4FY18;

long-term PPAS a problem; Rajnish Kumar, Chairman



The kind of improvement which was envisaged under UDAY has not taken place

to that extent what was anticipated.

Many power assets are under stress and various resolution plans including the

sale of assets or change of management are works in progress in most of the

cases.

As far as three coast-based power projects in Gujarat are concerned which are

dependent on import from Indonesia, these are under recoveries. Lenders are

concerned that because of under recoveries, there is possibility or situation

where they may not be able to pay.

There is a problem around power purchase agreements (PPAs), where in the last

two years there have been hardly any long-term PPAs.

Have submitted that it is not a right strategy for discoms to rely solely on short-

term PPAs. The long-term PPAs are in their own interest.

Regarding first 12 cases sent to IBC, holding nearly 60 percent provision on

these cases. In March quarter some more will have to be done on account of the

regulatory requirements which should be sufficient. Even if there is a either a 2-

3 percent shortfall, the range will be within that only.

Punjab National Bank (PBN) has not yet made the payments due to on the letter

of undertaking. But have always maintain that they are a respectable bank.

12 March 2018

3. PRAKASH IND : Facts are different than what have been

projected by rti activist; Ved Prakash Agarwal, Chairman



*Company is under pressure after allegations from a right-to-information (RTI)

activist on possible benami transactions.

The facts are different than what has been projected. There is nothing at all

which is adverse in the case of the company.

The transactions that the activist is talking about is relating to the year 2014-

2015 and these relates to the sale proceeds of the company.

These transactions have already been assessed by the various sales tax

department and at all the levels the company has been assessed, so there is

nothing pending against the company.

Will be proceeding against concerned activist legally in due course.

Steel market has further grown in last two years. Seeing a shortage of steel

globally.

Margins will improve as a benefit of lower iron ore prices kicking in.

Demerger process is on track.

4. MINDA INDUSTRIES : Eyeing 12.5% margins in 2-3 yrs; see

order uptick for BS-vi products; Sudhir Jain, Group CFO



With introduction of BS-VI norms and certain products like air bags and reverse

parking systems have been made compulsory from July’19, has resulted into

additional orders for the company.

Had invested into these product systems. All four wheelers will have to comply

with these norms.

Make around 20 different type of products for two-wheeler, four-wheeler,

three-wheelers and off road.

The price point of air bags and reverse parking systems without camera are

better than other products.

Topline has been growing 25 percent CAGR, year after year and half the growth

comes from existing products and rest growth comes from new products that

the company adds each year.

The company is also into manufacturing alloy wheels and the penetration of

alloy wheels from steel wheels has gone up 20 percent and is expected to go up

to 30 percent in 2-3 years.

Targeting 12.5 percent EBITDA margins in the next 2-3 years.

12 March 2018

From the think tank

1. Can Indians build world-class tech companies?



Apple co-founder Steve Wozniak’s recent comment doubting the creativity of

Indians was ill-informed at best. But his criticism about the absence of companies

making big advances in technology is indisputably true, sizable companies like

Infosys Ltd and Tata Consultancy Services Ltd (TCS) notwithstanding. Out of the

seven Indian companies that made it to 2017’s Fortune 500 list, three are private

companies—Reliance Industries, Tata Motors and Rajesh Exports—and none is a

tech company. The early stories of many tech companies feature a precocious

geek who identifies a need and uses technology to create the revolutionary

product. Larry Page and Sergey Brin at Google and Bill Gates at Microsoft come to

mind. Elon Musk at Tesla is cast in the same mould. There are also companies like

Dell Computers and Apple which did not invent a new product line, but better

served consumers by delivering cheaper or better-designed products. So what

gives? Was Wozniak at least partly right about Indians lacking creativity—in

technical areas, at least?

2. How technology can help reduce systemic graft and improve

efficiency



No discussion in the technology world today is complete without artificial

intelligence (AI), data economy and blockchain, among others. Prime Minister

Narendra Modi-led India is on course to lead the Fourth Industrial Revolution

and provide innovative solutions for a better quality of life. Modi recently spoke

at the World Government Summit in Dubai, launched an AI centre in Mumbai

and addressed the global information technology (IT) industry at the NASSCOM-

WCIT (World Congress on Information Technology), where his central theme

was around digital technology emerging as a great enabler to pave the way for

efficient service delivery, governance, and improved access to financial

inclusion, education, justice, and healthcare.

3. The PNB story should not mask the big picture



A scam in the Punjab National Bank (PNB) has been in the news. Policymakers have

responded emphatically. The Fugitive Economic Offenders Bill is under active

consideration. The National Financial Reporting Authority is being set up. The focus

in all this is on checking fraud. It is interesting, however, that the PNB fraud

involves a maximum possible loss of Rs11,394 crore for the PNB; this is not even

1% of the total bad loans, which are humongous in India. Ruchir Sharma reported

that “... by 2014 ... in all, roughly 15% of state bank loans had gone bad” in India.

Bad loans have been huge but surprising as it may sound, relatively speaking, not

very many frauds have happened in the larger picture on banks in India. Yet the

non-performing assets (NPAs) are humongous. Why? Joseph Schumpeter, a great

economist and finance minister of Austria, taught us about the role of competition

and creative destruction in a capitalist economy. Competition and a new idea in

technology or management can almost kill an existing, flourishing business in a

short span of time.

12 March 2018

4. Time to tweak the bankruptcy code, again



As the resolution deadline for some of the big distressed cases draws near, a few

are heading towards closure but others are stuck. The Insolvency and Bankruptcy

Code, touted as one of the great reforms of recent years, cannot succeed if cases

are delayed or stuck because of different interpretations of the law. If cases

become stuck in litigation and scare away potential buyers for assets yet to enter

the process, it will destroy confidence in the fledgling resolution framework. The

government has to act quickly to remedy the situation and amend the code to

ensure more clarity on who can bid and who cannot. In the next two months, the

270-day deadline for the resolution process expires for 11 of the 12 big cases

referred by the Reserve Bank of India for early resolution. But in at least four cases,

the chances of meeting the deadline appears slim as they are either stuck in

litigation or got delayed because of legal issues. Of course, lenders will be able to

get some money after they are forced into liquidation, but that is not the optimal

solution.

International

5. Designing competition policies for the age of AI



Recently, the Competition Commission of India (CCI) imposed a hefty penalty on

Google for abusing its dominant position in the online search market. The

company was accused of promoting its own verticals at the expense of its rivals.

While the specifics of the case have received much attention, it has probably not

been appreciated that this case is a kind of watershed moment for the

competition policy in India. In future, competition policy will have to face the

challenges of Artificial Intelligence (AI) and big data. Since Google is a leading AI

company, this occasion may be used to think about these broader sectoral

challenges. Essentially, the regulatory challenges posed by AI fall in three broad

categories: market foreclosure and related exclusionary practices; new forms of

collusion; and new strategies to implement price discrimination. Additionally, AI

will accentuate concerns about technological sovereignty and wealth inequality.

While these concerns may seem underwhelming in comparison to the dystopian

future shown in Hollywood movies, they are more realistic and have an

immediate relevance for public policy.

12 March 2018

Click excel icon

for detailed

valuation guide

CMP

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

Motherson Sumi

Tata Motors

TVS Motor

Aggregate

Banks - Private

AU Small Finance

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

Indian Bk

PNB

SBI

Union Bk

Aggregate

NBFCs

Aditya Birla Cap

Bajaj Fin.

Capital First

Cholaman.Inv.&Fn

Dewan Hsg.

GRUH Fin.

HDFC

HDFC Stand. Life

Indiabulls Hsg

Reco

Buy

Neutral

Buy

Sell

Buy

Neutral

Buy

Neutral

(INR)

794

147

2938

748

18223

1548

27875

1233

850

209

3587

729

230

8664

317

342

646

Valuation snapshot

% Upside

EPS (INR)

EPS Gr. YoY (%)

P/E (x)

P/B (x)

ROE (%)

Down-

(INR)

FY18E FY19E FY20E FY18E FY19E FY20E FY18E FY19E FY18E FY19E FY18E FY19E

side

1035

158

4031

880

21951

1899

34764

1540

714

268

3986

884

303

10972

437

515

741

-16

28.3 34.7 41.4 0.9

4.9

6.2

7.7

7.8

150.3 174.1 201.6 6.5

20.2 26.8 35.2 54.2

459.1 595.2 731.7 -3.0

63.1 84.7 111.7 -32.3

829.4 1,053.0 1,335.0 34.5

28.2 38.5 51.3 20.1

36.6 45.6 54.9 90.4

8.0 10.2 11.6 -1.3

185.0 200.1 212.6 9.4

37.7 43.9 48.4 37.8

9.6 12.2 15.1 107.8

275.6 369.9 471.3 10.8

8.1 12.5 17.5 5.0

28.0 57.9 58.5 41.1

13.9 25.1 33.9 18.5

19.9

10.6

14.7

7.4

0.9

5.5

67.0

12.5

3.0

61.1

8.6

32.7

15.8

1.9

18.2

15.3

31.0

9.0

6.6

6.5

80.6

16.5

3.2

78.9

12.2

41.5

22.7

3.8

23.9

21.6

44.6

10.9

10.2

8.2

100.9

21.0

3.9

101.4

16.8

54.2

30.3

4.9

30.8

-42.8

-4.4

5.3

-81.6

13.3

18.0

-18.3

0.4

27.0

22.0

33.0

-22.6

24.8

15.6

22.7

26.7

15.8

32.7

29.6

34.1

27.0

36.7

24.3

27.5

8.2

16.4

27.2

34.2

54.7

107.1

80.5

45.2

43.9

111.4

22.2

616.0

19.1

20.3

32.0

7.0

29.2

41.6

26.9

43.7

97.1

31.2

35.1

19.4

24.0

15.8

31.5

22.9

31.9

26.8

33.2

20.6

13.6

6.2

10.1

23.9

27.4

39.6

1.1

34.9

15.1

41.1

43.7

21.4

53.4

26.1

25.2

27.6

21.9

28.5

37.7

30.5

33.2

30.4

28.8

29.8

28.1

29.9

19.6

37.1

39.7

24.5

33.6

43.7

23.2

26.1

19.4

19.3

23.9

31.4

39.2

12.2

46.4

24.4

55.4

34.4

21.8

150.4

17.2

27.7

23.4

16.5

27.8

7.1

33.1

28.8

12.9

16.7

26.8

22.9

23.6

16.9

27.9

30.6

18.3

26.5

32.0

18.7

20.5

17.9

16.6

18.8

23.4

25.3

5.9

25.7

16.8

38.5

16.3

17.8

21.0

14.4

23.0

17.8

15.4

21.5

5.0

26.1

20.1

6.5

12.7

19.8

7.9

85.7

6.3

6.8

11.2

14.1

15.8

13.0

28.7

26.8

14.4

19.1

10.5

46.3

37.1

79.2

11.4

4.5

6.3

4.5

7.2

5.8

2.4

10.7

8.4

3.5

3.3

6.2

3.0

2.3

6.3

7.1

1.6

10.6

4.4

7.3

1.9

2.1

1.5

3.9

2.2

1.1

4.4

0.6

4.4

2.9

0.9

2.8

2.9

0.8

0.6

0.5

0.8

0.5

1.1

0.5

0.8

3.9

5.5

4.1

6.0

5.2

2.1

8.0

7.0

3.0

2.9

5.4

2.7

2.1

5.4

5.9

1.3

7.9

3.6

6.1

1.7

1.8

1.9

1.4

3.4

2.0

1.0

3.7

0.6

3.7

2.6

0.8

2.3

2.6

17.3

22.1

24.2

21.0

15.2

10.1

36.2

21.0

17.2

12.6

34.0

14.4

10.4

19.8

19.2

14.7

24.9

17.9

14.1

5.9

10.1

1.4

9.4

16.2

8.1

6.8

17.0

8.9

13.2

12.2

6.9

17.6

10.8

18.3

24.7

25.3

23.5

17.9

12.3

34.6

23.9

17.3

14.4

32.0

14.4

11.7

22.8

25.4

24.3

35.3

21.7

17.2

11.1

10.4

9.5

9.8

15.9

10.1

6.9

19.1

11.9

14.3

13.8

12.7

19.9

13.1

Buy

Neutral

Buy

Neutral

Buy

589

505

161

139

1853

293

1698

1085

456

303

705

710

188

205

149

2400

405

2076

100

1220

680

410

Buy

Neutral

Buy

Neutral

132

235

278

253

185

150

415

430

215

375

145

125

9.8

-15.6

12.6

34.1

5.7

3.2

-40.5

16.7

1.1

37.3

40.6

8.5

18.0

5.9

23.7 182.1 70.7 42.0 13.5

3.7 Loss LP 222.3 NM

70.6 -33.0 196.8 89.1 18.7

46.5 16.4 19.3 14.5 8.2

15.7 -8.8 49.5 84.7 16.8

29.7 978.7 459.4 65.3 78.9

15.3

LP 158.0 NM

-72.8 2,102 71.3 285.2

42.3

38.9

34.5

26.5

22.1

8.0

5.4

32.8

45.2

35.4

30.2

18.7

26.8

18.8

14.0

13.9

15.4

42.4

34.2

27.5

21.5

26.1

23.4

16.3

25.2

22.1

41.7

36.3

18.8

22.7

13.3

55.1

42.3

90.3

13.2

0.8 2.0 5.5

0.6 -6.5 0.6

0.5 2.3 6.8

0.8 10.8 11.9

0.5 2.9 4.3

1.1 1.6 8.4

0.4 -16.7 2.7

0.7 0.3 5.7

Buy

Neutral

Buy

154

1652

643

1404

497

547

1818

425

1200

225

2330

960

1520

720

540

2260

485

1630

-1

3.7

5.3

7.6

45.6 61.7 82.8

34.2 44.6 56.8

61.8 73.3 89.1

37.4 47.5 59.9

9.9 11.8 14.6

43.0 49.0 57.0

4.7

5.4

6.7

91.1 105.1 128.3

4.0 3.1 12.6 12.4

5.8 4.9 20.1 19.8

2.4 2.1 13.7 15.6

4.2 3.6 20.4 20.2

1.8 1.5 14.0 15.8

16.5 13.6 32.9 32.2

5.0 4.3 17.6 16.5

2.8 2.3 21.7 21.1

3.7 3.3 29.9 30.4

12 March 2018

Click excel icon

for detailed

valuation guide

CMP

Company

L&T Fin Holdings

LIC Hsg Fin

MAS Financial

M&M Fin.

Muthoot Fin

PNB Housing

Repco Home

Shriram City Union

Shriram Trans.

Aggregate

Capital Goods

ABB

Bharat Elec.

BHEL

Blue Star

CG Cons. Elec.

CG Power & Indu.

Cummins

GE T&D

Havells

K E C Intl

L&T

Siemens

Solar Ind

Thermax

Va Tech Wab.

Voltas

Aggregate

Cement

Ambuja Cem.

ACC

Birla Corp.

Dalmia Bharat

Grasim Inds.

India Cem

J K Cements

JK Lakshmi Ce

Ramco Cem

Orient Cem

Prism Cem

Sagar Cements

Sanghi Inds.

Shree Cem

Ultratech

Aggregate

Consumer

Asian Paints

Britannia

Colgate

Dabur

Emami

Godrej Cons.

GSK Cons.

HUL

Reco

Buy

Neutral

Buy

Neutral

Buy

(INR)

160

483

586

420

371

1099

546

1963

1339

(INR)

240

608

750

575

475

1750

740

2500

1750

% Upside

EPS (INR)

Down-

FY18E FY19E FY20E

side

7.4 11.0 13.5

38.5 44.3 52.6

18.6 24.2 30.0

13.9 19.2 23.0

43.8 44.8 49.3

51.4 69.0 92.3

33.4 39.0 46.0

114.2 140.0 166.8

78.7 104.8 125.9

EPS Gr. YoY (%)

Valuation snapshot

P/E (x)

P/B (x)

ROE (%)

FY18E FY19E FY20E FY18E FY19E FY18E FY19E FY18E FY19E

42.2

0.6

24.0

95.8

48.1

62.4

14.6

35.4

42.1

28.2

47.1

15.2

29.6

38.7

2.3

34.4

16.8

22.6

33.1

22.8

23.2

18.7

24.1

19.4

10.2

33.7

18.1

19.2

20.2

22.6

21.5

12.6

31.4

30.3

8.5

21.4

16.4

17.2

17.0

27.9

14.6

10.9

24.2

21.8

8.3

15.9

14.0

12.8

22.7

47.6

18.7

29.6

32.3

37.1

42.0

24.9

33.4

36.2

21.5

22.2

35.8

33.5

33.2

14.4

31.1

26.3

28.2

24.7

19.0

35.4

9.2

19.2

17.8

22.6

23.8

27.2

24.5

18.2

12.5

36.8

30.0

23.4

44.0

46.1

36.8

36.2

34.6

44.6

35.9

46.7

3.1

1.9

4.4

2.8

1.9

3.0

2.6

2.3

2.4

4.2

2.6

1.7

3.9

2.6

1.6

2.6

2.2

2.0

2.1

3.6

15.9

16.4

20.2

10.9

24.3

14.7

16.9

14.1

14.9

15.0

19.7

16.5

17.0

12.5

21.0

17.4

16.9

15.2

17.5

15.8

Sell

Buy

Sell

Neutral

Buy

Neutral

Buy

Neutral

Buy

Neutral

Buy

Neutral

Buy

Neutral

1435

148

794

240

779

386

503

402

1290

1087

992

1150

501

629

1240

210

780

305

1040

435

640

385

1650

1285

1100

1250

700

630

-14

-7

-2

-4

19.8

7.1

3.0

16.6

5.1

1.1

23.2

10.6

11.4

16.1

49.0

19.8

24.4

28.6

33.2

18.0

30.1

7.9

2.9

24.6

6.5

1.9

31.3

11.6

13.9

18.7

58.1

30.4

29.6

34.7

34.8

20.2

35.0 12.1 52.0 16.2 72.4

8.4 12.6 12.0 6.3 20.9

4.0 123.6 -2.6 37.5 28.8

31.2 36.0 48.2 26.9 47.8

7.7

9.8 26.1 18.4 46.7

3.0 -72.2 63.3 58.8 68.6

37.1 -12.4 34.6 18.6 33.5

13.2 84.1 9.6 13.9 36.6

17.2 19.4 21.6 24.1 44.1

24.1 35.5 16.6 28.5 25.1

69.3 15.7 18.8 19.2 26.3

34.6 10.9 53.8 13.8 55.0

36.7 18.4 21.5 23.7 40.6

39.0 -7.4 21.4 12.5 40.3

38.4 76.0 4.9 10.3 15.1

23.0 16.4 12.4 13.8 34.9

17.2 19.9 18.8 31.5

10.9

76.9

50.6

107.6

145.0

10.4

76.9

25.0

38.8

10.3

6.3

70.6

12.0

724.2

178.4

29.5

31.3

-69.0

41.2

-47.5

-33.4

31.8

34.7

-10.8

713.3

102.0

10.0

-7.4

-7.7

38.4

31.1

378.7

41.5

235.5

101.9

27.3

97.2

25.3

66.8

113.1

101.0

53.5

3.0

53.0

74.3

30.4

23.6

19.5

39.0

21.4

37.7

36.0

35.2

27.2

88.7

33.4

39.7

34.6

66.2

31.1

31.2

39.0

32.4

90.8

50.0

30.9

38.7

22.7

44.5

29.8

45.3

52.2

36.6

19.1

37.9

45.9

40.7

8.4 7.4 11.6 15.4

3.7 3.4 17.9 18.0

1.0 1.0 3.4 3.3

9.5 8.8 20.4 28.3

20.5 16.8 50.6 49.8

1.2 1.1 1.7 2.7

5.4 5.0 16.7 20.8

8.1 7.1 24.1 22.7

8.5 7.5 19.4 20.8

5.4 4.5 21.6 21.0

3.3 3.0 13.0 14.1

5.0 4.6 9.1 12.9

7.5 6.4 20.0 20.6

4.7 4.2 12.1 13.4

2.4 2.1 17.1 15.8

5.6 4.9 16.9 16.8

3.5 3.2 11.0 12.2

2.3

3.2

1.9

4.5

1.6

0.9

3.5

3.3

4.1

2.9

5.6

2.3

2.0

6.2

4.3

3.3

13.9

17.8

21.1

10.2

12.3

10.8

8.1

42.8

2.2

3.0

1.8

4.0

1.3

0.8

2.9

3.6

2.7

4.7

2.1

1.7

5.4

3.8

2.9

12.3

15.3

19.8

9.1

10.8

9.5

7.4

42.6

6.1

10.1

2.1

9.4

5.2

2.2

16.4

7.7

14.4

6.6

11.2

6.5

10.8

17.6

9.7

8.0

26.9

33.9

49.9

25.4

29.0

23.6

20.7

76.5

8.0

12.6

9.6

12.0

15.7

4.4

17.8

13.8

15.9

10.3

20.9

12.0

14.6

15.7

13.5

12.5

29.6

35.8

55.5

26.7

33.2

22.6

21.6

91.4

Neutral

Buy

Neutral

Buy

Not Rated

Buy

235

1534

804

2739

1101

145

1007

417

725

149

116

922

111

16024

4083

290

1781

1234

3328

1242

148

1343

470

847

179

159

157

22424

5131

6.0

47.4

8.9

54.7

35.6

3.7

44.4

9.4

24.3

3.3

2.2

25.2

5.8

423.0

89.0

8.3

62.2

42.4

77.4

119.4

7.6

56.5

18.5

30.5

5.5

4.7

50.6

8.9

435.8

136.2

Neutral

Buy

Neutral

Buy

1128

4841

1039

327

1084

1074

6598

1301

1270

5995

1365

415

1505

1065

6350

1585

-1

-4

21.6

84.2

24.0

7.6

24.0

20.9

161.0

23.1

25.6 30.8 2.7 18.8 20.2 52.3

105.1 131.5 14.3 24.8 25.1 57.5

28.3 33.8 12.9 17.9 19.7 43.4

9.0

10.5 4.5 19.2 16.2 43.2

31.3 37.3 -9.6 30.5 19.1 45.2

24.1 27.5 10.6 15.1 14.2 51.3

183.8 215.7 3.1 14.1 17.4 41.0

27.9 32.9 17.6 20.7 18.1 56.3

12 March 2018

Click excel icon

for detailed

valuation guide

CMP

Company

ITC

Jyothy Lab

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

Laurus Labs

Lupin

Sanofi India

Shilpa Medicare

Strides Shasun

Sun Pharma

Torrent Pharma

Aggregate

Infrastructure

Ashoka Buildcon

IRB Infra

KNR Constructions

Sadbhav Engineering

Aggregate

Logistics

Allcargo Logistics

Concor

Gateway Distriparks

Aggregate

Media

Dish TV

D B Corp

Den Net.

Ent.Network

Hathway Cable

Hind. Media

Reco

Neutral

Buy

Neutral

Buy

Neutral

Not Rated

Buy

Neutral

(INR)

259

351

307

7651

21451

263

878

9378

162

1015

2974

(INR)

278

380

345

7882

27490

314

1050

9303

1380

3515

% Upside

EPS (INR)

Down-

FY18E FY19E FY20E

side

9.0 10.2 11.4

8.1 10.7 13.3

6.4

7.6

9.0

140.0 159.1 192.3

297.1 415.7 549.8

8.9 12.4 16.8

17.7 20.8 24.1

-1

142.1 171.3 200.8

3.5

6.4

9.7

14.1 17.4 22.9

32.9 57.0 78.7

EPS Gr. YoY (%)

Valuation snapshot

P/E (x)

P/B (x)

ROE (%)

FY18E FY19E FY20E FY18E FY19E FY18E FY19E FY18E FY19E

6.6

-27.7

1.2

13.2

24.5

147.7

5.7

6.9

-2.0

62.0

22.9

9.0

13.7

32.0

19.2

13.6

39.9

38.7

17.8

20.5

83.8

23.9

73.4

18.5

12.4

24.2

18.4

20.8

32.2

35.6

15.5

17.3

52.1

31.2

38.1

17.3

29.0

43.2

48.4

54.6

72.2

29.5

49.7

66.0

46.7

72.1

90.5

44.2

25.5

32.8

40.6

48.1

51.6

21.3

42.1

54.8

25.4

58.2

52.2

37.3

21.1

24.8

20.1

12.2

54.5

18.2

21.2

22.6

18.8

52.8

16.2

13.5

41.3

23.3

12.7

17.9

19.0

31.2

16.7

16.2

23.2

21.7

21.2

23.8

8.8

21.1

23.8

14.9

12.5

24.3

19.3

21.8

6.3

6.1

15.0

23.0

28.8

3.0

11.6

37.1

2.2

10.1

15.6

11.9

5.8

5.9

14.2

21.5

23.0

2.6

9.9

31.1

2.1

8.8

11.7

10.8

22.8

13.8

33.0

43.4

39.9

10.8

25.2

61.2

4.9

14.9

17.3

26.9

23.8

18.3

36.0

46.2

44.6

13.3

25.4

61.8

8.5

16.2

22.3

28.9

Neutral

Buy

Neutral

Buy

Neutral

Buy

Neutral

Buy

Neutral

Buy

Neutral

534

2210

1322

592

595

384

573

996

2130

145

533

107

2267

680

796

520

764

5044

444

663

507

1328

555

2500

1840

820

600

500

600

1100

2575

185

550

175

2500

750

1110

613

940

5600

749

989

675

1400

23.9

66.8

54.0

44.5

7.6

16.8

22.4

32.9

74.4

-0.8

30.6

6.3

49.1

21.4

47.8

19.0

32.3

141.7

13.3

14.1

13.6

48.0

25.3 30.1 10.8 5.9 19.0 22.3

88.9 109.9 -10.5 33.2 23.5 33.1

65.8 81.4 -5.8 21.9 23.6 24.5

48.7 53.6 13.2 9.4 10.1 13.3

10.9 19.8 -25.3 43.1 81.5 78.0

21.0 24.4 18.5 25.0 15.8 22.8

27.0 33.0 40.9 20.6 22.0 25.6

44.0 52.7 -17.7 33.9 19.7 30.3

113.2 145.0 2.4 52.2 28.0 28.6

2.8

7.3

LP 164.5 NM

32.9 41.1 -22.2 7.7 24.7 17.4

7.9

11.0 -12.4 25.2 38.7 16.9

54.9 61.1 42.9 11.9 11.2 46.2

29.2 37.3 33.2 36.6 27.7 31.8

62.6 72.5 29.5 30.9 15.8 16.6

29.1 35.7 7.0 52.7 22.8 27.3

40.2 54.1 -43.0 24.6 34.6 23.7

161.8 186.9 9.8 14.2 15.5 35.6

26.5 33.4 -5.0 99.2 26.1 33.3

40.8 55.7 -56.2 188.8 36.7 46.9

21.9 27.9 -48.1 61.4 27.7 37.4

61.3 78.5 -12.9 27.6 28.0 27.7

-17.4 33.1 25.1 28.3

9.5

24.6

14.0

16.0

19.1

21.3

18.2

17.4

24.8

41.2

27.1

79.9

-3.0

-17.3

14.9

101.0

-13.6

30.2

8.6

42.9

8.5

17.5

27.3

15.4

18.0

29.8

33.1

28.0

4.5 3.9 21.8 19.7

5.2 4.5 16.7 19.3

5.9 4.7 27.0 26.2

2.9 2.4 24.6 21.6

6.9 6.3 8.9 11.6

4.8 3.9 22.7 23.7

3.3 2.9 12.8 13.6

5.1 4.5 16.6 21.2

2.7 2.4 10.0 13.7

1.2 1.2 -0.7 2.2

2.9 2.5 16.4 15.3

2.0 1.8 13.2 13.9

11.0 12.6 23.9 30.5

3.2 2.9 10.5 13.0

3.0 2.5 19.7 21.4

3.6 3.0 14.1 18.3

2.4 2.2 10.4 12.0

5.7 5.2 16.1 16.8

3.5 2.9 11.0 19.0

2.1 1.9 4.6 12.1

3.2 3.0 8.8 13.3

4.6 4.1 17.6 19.9

3.6 3.2 12.6 14.8

2.2

1.2

3.7

3.5

2.1

2.0

3.2

2.1

3.0

2.0

1.1

3.2

3.1

1.8

3.0

2.0

2.7

5.5

15.5

23.6

13.5

13.3

11.7

11.2

6.5

10.6

8.9

13.4

16.2

13.7

12.3

15.3

12.9

10.7

12.6

Buy

Neutral

Buy

226

215

295

380

290

250

375

460

5.3

25.4

16.9

13.9

Buy

Neutral

Buy

160

1247

205

223

1469

237

8.9

41.9

6.2

12.9

51.2

10.6

14.9

58.2

13.1

-9.3

10.3

-9.0

5.3

44.2

22.3

71.3

28.5

15.8

13.5

23.4

14.6

109.9

20.1

5,545

75.7

161.9

12.6

Buy

Neutral

Buy

331

690

233

101

420

820

305

-4

-0.5

18.8

-2.9

8.3

-0.2

25.9

1.6

23.0

0.1

16.4

0.8

28.8

3.4

27.6 -7.6 22.0

4.0 Loss LP

28.7 -27.7 98.0

2.0 Loss LP

32.4 0.2 11.3

NM 41.5 16.5 11.8 -11.9 33.2

17.6 14.4 3.3 2.8 20.1 20.9

NM 1,318.9 2.1 2.1 -6.3 0.2

83.6 42.2 3.7 3.4 4.5 8.4

NM 45.5 2.5 2.3 -1.2 5.2

9.0

8.1

1.3 1.1 15.1 14.6

12 March 2018

Click excel icon

for detailed

valuation guide

CMP

Company

HT Media

Jagran Prak.

Music Broadcast

PVR

Prime Focus

Siti Net.

Sun TV

Zee Ent.

Aggregate

Metals

Hindalco

Hind. Zinc

JSPL

JSW Steel

Nalco

NMDC

SAIL

Rain Industries

Vedanta

Tata Steel

Aggregate

Oil & Gas

Aegis Logistics

BPCL

GAIL

Gujarat Gas

Gujarat St. Pet.

HPCL

IOC

IGL

Mahanagar Gas

MRPL

Oil India

ONGC

PLNG

Reliance Ind.

Aggregate

Retail

Jubilant Food

PC Jeweller

Titan Co.

Aggregate

Technology

Cyient

HCL Tech.

Hexaware

Infosys

KPIT Tech

L&T Infotech

Mindtree

Mphasis

NIIT Tech

Persistent Sys

Tata Elxsi

Reco

Neutral

Buy

Neutral

Buy

(INR)

165

384

1322

879

568

(INR)

117

215

469

1760

130

1225

705

% Upside

EPS (INR)

Down-

FY18E FY19E FY20E

side

11.8 12.1 12.7

10.4 13.1 16.0

8.2 13.5 17.8

22.1 37.3 51.5

2.5

5.8

7.9

-0.9 0.1

0.6

27.7 35.8 42.5

13.7 17.6 21.0

EPS Gr. YoY (%)

Valuation snapshot

P/E (x)

P/B (x)

ROE (%)

FY18E FY19E FY20E FY18E FY19E FY18E FY19E FY18E FY19E

59.3

-2.3

27.8

7.8

100.6

Loss

11.6

2.1

12.1

2.6

26.4

64.9

68.7

137.5

29.1

28.7

43.8

4.9

21.5

31.4

37.9

36.4

411.6

18.7

19.3

28.1

7.3

7.1

15.9 12.6

46.7 28.3

59.8 35.4

39.4 16.6

NM 123.5

31.7 24.5

41.6 32.3

36.7 25.5

8.1

9.4

30.5

12.1

12.2

8.7

16.1

9.6

7.3

8.7

9.2

24.9

10.7

13.5

26.0

15.5

11.4

11.0

27.2

18.7

10.0

7.9

7.7

14.4

13.7

11.4

52.2

17.2

51.4

40.5

15.3

14.7

19.6

16.5

15.8

18.1

20.0

16.3

16.8

15.4

23.0

0.8

2.6

3.7

5.8

4.1

3.0

8.0

7.0

5.1

1.5

6.4

0.7

2.6

1.2

1.6

0.8

3.3

2.0

1.5

1.8

10.5

2.5

1.8

6.3

2.2

2.5

1.7

6.1

4.8

1.7

0.9

1.0

3.6

1.8

1.7

0.7 11.5 10.6

2.3 15.3 18.4

3.3 8.2 12.2

5.1 10.2 15.3

2.5 11.6 18.9

2.9 -15.8 2.4

7.2 26.1 30.9

6.0 18.2 20.0

4.4 14.0 17.4

1.3

4.5

0.7

2.2

1.2

1.4

0.8

2.5

1.7

1.3

1.6

7.9

2.2

1.7

5.2

2.0

2.1

1.5

5.2

4.4

1.5

0.8

1.0

3.0

1.6

1.5

14.0

35.3

-3.6

20.2

-0.9

18.4

-1.0

24.7

15.1

15.9

12.3

31.6

22.7

11.3

16.1

14.6

24.9

17.3

20.8

28.0

20.2

7.1

10.0

23.9

12.8

12.9

16.8

55.7

2.3

19.5

9.8

17.3

4.8

29.8

25.4

16.3

16.8

36.3

21.8

12.8

22.0

13.6

20.2

14.4

20.8

24.4

16.2

10.5

12.8

22.9

12.7

13.2

Buy

Neutral

Buy

Neutral

Buy

Sell

Buy

Neutral

220

314

222

291

122

389

304

606

344

342

361

339

215

480

416

778

19.5

21.6

-11.5

20.7

-0.5

13.7

-0.9

25.6

23.8

57.7

27.0

33.3

7.3

24.0

5.1

14.0

4.3

40.6

41.7

69.4

27.9 127.9 38.6 3.0 11.3

32.1 9.6 54.6 -3.8 14.6

11.9 Loss LP 63.4 NM

23.7 39.8 15.9 -1.0 14.1

5.3

2.6 NM

14.7 37.6 2.2 4.7 8.9

6.5 Loss LP 50.2 NM

44.6 165.9 58.6 9.8 15.2

43.4 57.4 74.8 4.2 12.7

61.5 51.9 20.4 -11.5 10.5

66.7 55.4 1.7 14.4

12.5

45.8

33.8

42.3

13.9

36.4

42.4

12.5

54.6

12.2

42.2

24.3

18.9

74.3

80.4

-22.0

17.4

28.2

40.1

-14.7

-7.7

7.4

27.0

-15.0

-22.6

7.1

24.3

19.6

3.4

50.1

9.2

22.0

59.6

4.1

-9.4

17.2

-3.6

-7.7

56.7

32.5

13.4

10.3

11.9

28.0

11.3

4.6

28.7

8.3

15.8

21.1

13.2

1.2

5.0

3.3

4.1

17.9

11.6

10.7

37.3

11.6

16.5

41.5

16.2

10.3

10.0

31.8

18.1

9.2

12.3

10.2

16.3

15.1

12.8

67.7

21.8

65.3

51.5

17.2

15.3

21.8

18.1

17.5

20.6

24.9

18.8

19.7

19.0

27.3

Buy

Sell

Buy

Neutral

Buy

Neutral

Buy

243

439

438

855

199

357

386

301

1009

116

322

180

231

912

303

549

388

1014

188

530

513

416

1228

114

425

230

318

1111

-11

-6

-2

6.5

37.7

26.5

20.6

12.3

34.7

38.7

9.4

55.9

12.6

26.1

17.6

14.1

60.4

9.7

41.2

32.3

32.9

12.8

31.5

35.0

11.1

53.9

11.6

40.9

23.3

16.0

66.6

Neutral

Buy

2055

337

818

2185

685

990

103

30.3

15.4

12.5

39.3

19.5

15.9

51.6 186.2 29.6 31.3

24.9 44.4 26.6 27.6

19.8 38.8 27.0 24.1

48.6 27.2 26.0

45.9

68.9

20.9

78.6

17.2

86.1

47.8

54.6

60.6

60.5

51.5

18.1

3.1

21.2

2.6

0.8

18.5

31.5

12.9

17.4

14.4

30.8

12.1

3.8

10.9

9.7

10.5

13.7

24.6

14.8

16.9

22.8

18.4

13.2

7.5

13.4

11.2

29.1

15.2

17.2

8.3

16.2

14.3

18.2

15.2 15.6 22.5 29.8

3.4 3.0 16.9 18.4

13.9 12.8 23.4 25.9

9.9 9.0 19.2 22.2

3.0

3.7

5.5

4.2

2.3

5.9

5.1

3.2

3.1

3.2

8.8

2.7

3.4

4.7

3.6

2.0

4.7

4.5

2.9

2.8

3.1

7.0

17.4

25.1

26.9

24.3

14.3

32.1

19.9

15.3

16.1

17.8

36.0

17.8

23.9

25.8

23.1

13.8

29.0

24.0

18.7

17.6

21.0

33.8

Buy

Neutral

Buy

Neutral

Buy

Neutral

Buy

622

945

361

1163

210

1355

815

824

879

817

1003

675

950

340

1250

219

1400

725

800

900

1236

-6

-11

-3

-9

36.2

61.7

16.6

64.4

12.0

65.7

32.7

43.9

44.6

43.1

36.8

40.6

64.1

18.4

70.7

13.3

74.7

40.8

50.4

52.2

53.0

43.6

12 March 2018

Click excel icon

for detailed

valuation guide

CMP

Company

TCS

Tech Mah

Wipro

Zensar Tech

Aggregate

Telecom

Bharti Airtel

Bharti Infratel

Idea Cellular

Tata Comm

Aggregate

Utiltites

Coal India

CESC

JSW Energy

NHPC

NTPC

Power Grid

Tata Power

Aggregate

Others

Arvind

Avenue Supermarts

Bata India

BSE

Castrol India

Coromandel Intl

Delta Corp

Eveready Inds.

Interglobe

Indo Count

Info Edge

Kaveri Seed

Manpasand

MCX

Monsanto

Navneet Education

Oberoi Realty

Quess Corp

PI Inds.

Piramal Enterp.

SRF

S H Kelkar

Team Lease Serv.

Trident

TTK Prestige

UPL

V-Guard

Reco

Neutral

Buy

Neutral

Buy

(INR)

3035

619

285

883

(INR)

2700

700

300

1100

Valuation snapshot

% Upside

EPS (INR)

EPS Gr. YoY (%)

P/E (x)

P/B (x)

ROE (%)

Down-

FY18E FY19E FY20E FY18E FY19E FY20E FY18E FY19E FY18E FY19E FY18E FY19E

side

-11

130.6 147.3 161.0 -2.1 12.8 9.3 23.2 20.6 7.3 6.3 30.4 32.9

39.2 40.9 47.7 26.8 4.5 16.6 15.8 15.1 3.1 2.7 20.6 19.5

17.9 18.5 21.2 6.0 3.2 14.7 15.9 15.4 2.8 2.4 17.2 16.7

54.2 64.1 85.2 4.0 18.3 33.1 16.3 13.8 2.4 2.1 15.7 16.4

4.2 5.1 11.1 19.2 18.3 4.8 4.2 25.0 23.1

3.5

3.9

14.0 16.2

-10.7 -11.6

2.4 11.6

7.2 -68.7 12.2 84.4 115.5

17.8 -6.1 16.5 9.7 23.9

-9.7 Loss Loss Loss NM

23.6 -75.8 383.2 102.9 256.9

PL Loss LP -432.7

31.1

103.2

4.0

3.2

16.2

21.3

7.9

23.8

71.1

11.4

-18.1

7.5

20.7

-5.8

14.5

-8.4

63.6

17.8

2.0

2.9

45.1

93.7

-8.7

48.2

-42.2

49.0

79.5

41.6

-16.0

21.9

3.6

22.3

124.2

-12.2

14.5

-3.5

9.1

11.6

8.4

4.4

8.9

25.3

44.9

7.3

-15.4

28.5

15.1

20.9

49.0

26.3

23.8

37.4

21.0

8.7

-5.9

20.4

40.7

42.5

19.3

32.0

12.5

18.5

47.2

41.1

20.6

28.4

253.5

47.7

20.6

40.0

24.2

31.6

37.5

28.1

27.8

9.7

32.9

16.2

8.4

10.7

3.1

9.5

4.6

8.6

10.3

34.1

33.4

16.6

8.6

4.3

4.5

34.0

24.1

44.4

17.7

27.1

17.0

35.6

18.5

18.4

17.6

-3.5

27.3

16.4

27.1

32.1

17.7

47.9

25.8

15.4

17.9

12.1

16.5

11.1

18.5

11.1

12.7

11.6

16.4

13.7

34.3

103.9

44.5

18.5

29.2

21.2

53.2

32.1

20.1

12.3

54.2

14.0

41.7

35.7

24.4

18.4

38.5

44.6

29.1

28.4

22.4

34.6

50.5

9.3

48.1

16.6

51.5

102.9

20.6

53.2

-1,534

11.4

10.3

21.9

8.6

11.1

9.6

11.0

10.8

27.7

75.6

36.8

17.0

31.0

17.6

37.8

22.6

16.8

9.3

48.1

11.8

28.3

25.3

20.2

14.3

10.9

30.2

24.2

20.3

18.0

26.3

36.7

7.3

37.6

15.1

38.8

2.4 2.3 2.1

4.2 4.2 17.0

1.3 1.6 -18.1

12.6 10.2 4.6

2.4 2.5 -0.6

7.4

1.1

1.2

0.9

1.3

1.8

1.7

2.0

6.9

1.0

1.2

0.9

1.2

1.6

1.5

1.9

44.7

10.6

6.7

8.5

10.5

16.5

10.8

14.8

2.3

20.4

-20.9

21.2

-0.2

60.8

10.4

5.5

10.8

11.3

17.5

14.5

17.3

Buy

Neutral

Buy

402

334

618

680

380

110

750

Buy

Sell

Buy

Sell

305

982

164

195

401

1408

210

282

-23

-7

18.5

88.8

4.3

2.4

12.9

16.9

4.9

26.8

95.2

3.6

3.1

14.8

20.4

7.3

Neutral

Sell

Neutral

Buy

Neutral

Buy

Neutral

Buy

Neutral

390

1304

708

774

204

510

315

378

1286

1265

480

375

745

2562

139

525

987

855

2362

1854

273

2186

6624

713

231

402

920

578

950

242

523

382

458

1307

117

1550

664

467

1100

3293

194

608

1300

988

3500

2040

343

2700

114

5281

945

167

-29

-18

-20

-28

11.3

12.6

15.9

41.8

7.0

24.1

5.9

11.7

64.0

7.5

23.4

34.2

9.0

20.8

105.0

7.6

13.6

22.1

29.3

83.1

82.9

7.9

43.3

7.2

137.8

43.0

4.5

14.1

17.2

19.3

45.5

6.6

29.0

8.3

16.7

76.4

9.9

26.3

40.6

13.2

29.4

126.6

9.7

48.2

32.7

35.4

116.4

103.0

10.4

59.6

9.2

176.1

47.2

6.0

18.8

23.0

22.4

49.4

6.9

30.3

11.2

20.8

110.4

11.7

33.4

47.4

17.9

34.9

149.9

11.4

46.5

41.6

41.2

147.9

136.0

12.2

88.1

11.6

203.2

55.6

6.7

2.7 2.5 8.0 9.4

18.5 15.8 19.0 22.6

6.1 5.4 14.6 15.7

1.6 1.3 8.5 7.4

19.8 18.6 69.1 61.8

4.4 3.8 22.5 23.4

5.3 4.7 12.6 13.2

8.0 6.5 27.1 32.0

7.3 6.8 46.8 42.1

1.8 1.5 16.0 17.4

7.1 6.4 13.7 14.0

3.4 3.0 23.4 27.1

3.5 3.2 7.4 11.8

2.9 2.7 7.9 11.0

7.5 6.5 32.5 34.5

4.2 3.6 23.9 26.9

2.9 2.4 7.8 24.2

5.5 4.4 21.7 21.0

6.1 5.1 22.6 22.9

2.2 1.9 8.9 10.2

3.1 2.7 14.1 15.9

4.5 4.0 13.4 16.0

8.2 6.7 17.7 20.1

1.1 1.0 12.6 14.5

8.2 7.3 18.0 20.7

3.9 3.3 26.3 23.6

12.6 10.0 26.9 28.8

12 March 2018

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

Motherson Sumi

Tata Motors

TVS Motor

Banks - Private

AU Small Fin. Bank

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

Indian Bk

PNB

SBI

Union Bk

NBFCs

Aditya Birla Cap

Bajaj Fin.

Capital First

Cholaman.Inv.&Fn

Dewan Hsg.

GRUH Fin.

HDFC

HDFC Stand. Life

Indiabulls Hsg

L&T Fin.Holdings

LIC Hsg Fin

M&M Fin.

Muthoot Fin

1 Day (%)

-0.1

1.8

0.5

-0.2

0.7

0.1

0.6

0.1

-0.5

0.4

0.0

0.2

2.7

-0.8

0.3

-1.2

-0.1

0.9

-2.8

-0.6

-1.0

0.8

0.1

-1.4

0.6

0.1

-1.1

0.4

0.1

-1.2

-1.4

-2.1

-6.1

-1.3

-1.2

-1.4

-2.8

-0.9

1.7

0.8

-1.7

0.2

1.6

1.2

-1.2

-0.4

0.9

-0.4

0.2

-2.6

1M (%)

-0.6

9.3

-5.3

-1.9

-6.7

-0.1

0.5

7.4

-6.8

0.5

1.2

-2.8

7.2

-3.2

-11.9

-7.4

-2.7

-0.9

-9.4

-5.9

-1.3

-1.6

0.0

-10.4

-6.4

2.8

-13.7

5.1

-5.3

-9.8

-6.8

-15.9

-31.6

-26.8

-18.1

-39.1

-14.6

-25.8

-8.5

0.8

-6.4

6.7

-3.4

2.9

2.6

-3.3

-7.0

-2.1

-5.4

-12.0

12M (%)

-3.7

62.4

2.3

44.9

-17.0

32.9

19.1

76.1

71.7

-1.2

9.6

11.8

12.0

45.3

33.2

-26.9

53.8

Company

MAS Financial Serv.

PNB Housing

Repco Home

Shriram City Union

Shriram Trans.

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

Siemens

Solar Ind

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

Sagar Cements

Sanghi Inds.

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

1 Day (%)

-0.2

-0.7

0.4

0.8

0.4

0.6

0.3

1.2

0.1

-0.9

-0.5

-0.4

0.0

-2.2

0.5

-1.3

1.0

-1.5

4.3

-0.5

-0.7

-0.8

0.6

0.2

-1.8

-1.5

0.5

-0.8

-1.1

-3.1

0.1

-1.3

-0.4

-0.6

0.2

-0.2

0.4

0.6

-0.1

-0.5

0.4

0.6

0.3

1.6

1.4

-0.8

3.8

-4.1

0.8

1.1

1M (%)

-4.5

-9.9

-7.5

2.0

2.2

-9.8

-5.1

-8.8

7.0

-1.5

-11.6

-5.7

-5.2

-2.3

12.3

-2.9

-11.9

-4.1

-3.1

-12.3

6.0

-9.1

-7.6

-19.8

-1.7

-0.8

-10.2

-2.1

0.5

1.9

-1.7

-12.9

-6.7

-6.2

-5.6

-1.7

-0.3

4.4

-5.6

-3.9

-0.5

5.6

8.8

-2.6

-4.4

-0.7

3.2

9.9

0.6

-11.5

0.0

1.0

12M (%)

11.7

-13.0

-0.1

39.7

20.2

5.2

-17.9

44.3

26.5

12.8

-9.4

34.4

18.9

148.1

31.0

-9.7

37.7

33.6

-10.3

63.3

3.7

9.4

18.8

44.9

30.8

-9.1

17.2

1.9

14.9

10.6

23.6

25.6

75.8

0.9

6.8

9.4

57.6

10.0

19.0

6.7

32.6

25.3

49.5

-2.0

-6.2

9.8

23.2

49.1

20.8

28.7

36.8

-2.1

1.8

-15.3

9.6

32.8

17.8

-17.3

28.2

-12.9

31.5

-3.6

22.4

3.5

-17.5

-21.6

-17.8

1.7

-32.4

-7.3

-35.9

51.8

-5.1

49.9

52.5

46.6

32.6

41.3

34.5

-14.9

49.9

5.6

12 March 2018

MOSL Universe stock performance

Company

Prabhat Dairy

United Brew

United Spirits

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

Laurus Labs

Sanofi India

Shilpa Medicare

Strides Shasun

Sun Pharma

Torrent Pharma

Infrastructure

Ashoka Buildcon

IRB Infra.Devl.

KNR Construct.

Sadbhav Engg.

Logistics

Allcargo Logistics

Concor

Gateway Distriparks

Media

Dish TV

D B Corp

Den Net.

Ent.Network

Hathway Cab.

Hind. Media

HT Media

Jagran Prak.

Music Broadcast

PVR

Prime Focus

Siti Net.

Sun TV

Zee Ent.

Metals

Hindalco

Hind. Zinc

JSPL

JSW Steel

1 Day (%)

-2.2

-0.9

-1.3

-1.8

-0.8

-2.0

0.6

-0.9

-1.2

-0.6

-0.5

-0.7

-1.9

-3.5

-0.9

-0.5

2.1

-0.6

-0.9

0.5

-0.5

8.9

0.3

-1.7

0.9

-1.1

0.1

-0.5

-1.0

-0.8

-0.1

2.5

-2.1

3.5

-1.0

-0.3

1.8

3.0

-2.0

3.6

2.2

1.3

1.6

-4.0

-1.9

0.8

-1.3

0.3

-5.2

0.6

1M (%)

-13.1

-4.8

-6.7

-1.8

1.3

-6.6

0.4

-2.0

-6.6

-7.8

-2.0

-2.9

-1.9

-0.4

-9.8

-7.5

9.6

-15.6

-6.9

0.9

6.8

-14.3

-10.4

-13.0

-7.2

-6.9

-3.0

-4.9

-3.8

-16.5

-5.5

-4.7

-10.1

3.4

-14.0

-0.3

-6.9

-4.0

-9.2

-2.7

8.3

-5.4

-6.8

-20.6

-9.6

-2.2

-9.6

3.4

-18.6

-5.8

12M (%)

29.1

32.0

34.1

-11.4

11.8

-22.8

-10.0

66.6

-12.6

-2.8

31.1

-21.3

-18.5

-40.0

-17.0

-15.8

23.8

6.2

-47.3

0.9

17.3

-30.2

-41.7

-26.1

0.0

25.5

-5.0

63.0

36.5

-2.6

28.0

-18.4

-35.7

-12.7

14.3

-16.2

-9.0

-13.9

3.3

-12.6

-1.9

21.0

-58.4

18.5

9.9

16.4

7.6

87.5

64.8

Company

Nalco

NMDC

Rain Industries

SAIL

Vedanta

Tata Steel

Oil & Gas

Aegis Logistics

BPCL

GAIL

Gujarat Gas

Gujarat St. Pet.

HPCL

IOC

IGL

Mahanagar Gas

MRPL

Oil India

ONGC

PLNG

Reliance Ind.

Retail

Jubilant Food

PC Jeweller

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

NHPC Ltd

NTPC

Power Grid

Tata Power

1 Day (%)

-2.2

-1.8

1.7

-6.4

-1.6

-4.7

-1.0

-0.8

0.2

-2.0

0.4

-1.0

0.9

-3.2

0.0

-1.0

-2.0

-0.3

-2.0

0.0

2.2

0.4

0.1

0.2

-0.5

1.2

0.6

-0.9

-3.6

-0.4

-0.8

-0.1

-1.7

0.0

1.1

1.8

0.1

-1.9

0.2

1.2

-0.9

0.0

-0.4

-0.1

-0.6

0.6

-0.8

-0.1

0.0

1M (%)

-15.1

-10.0

-0.8

-26.1

-4.0

-11.4

-7.4

-7.6

-5.5

-0.1

-1.7

-9.6

1.7

3.8

3.7

-2.3

-9.8

-4.3

-6.7

1.6

2.6

-8.9

2.6

-1.0

-1.9

5.8

4.6

-2.6

-1.9

13.6

-8.0

5.9

3.0

0.4

2.1

3.9

0.1

-5.0

-4.7

-2.2

-6.0

-3.3

1.4

-2.4

-4.0

-6.6

0.4

0.9

-6.1

12M (%)

-11.5

-13.4

291.0

17.1

20.1

36.9

20.5

4.2

15.3

28.3

24.5

3.9

3.0

46.2

18.5

11.0

-0.8

-5.3

18.5

41.7

95.1

79.1

85.3

33.5

11.8

63.8

15.0

58.0

93.3

72.2

43.2

111.1

31.0

38.9

20.4

26.6

17.8

-4.2

11.5

9.4

-24.2

-17.9

-4.2

21.1

28.7

-10.5

3.6

0.3

-2.7

12 March 2018

MOSL Universe stock performance

Company

Others

Arvind

Avenue Super.

Bata India

BSE

Castrol India

Coromandel Intl

Delta Corp

Eveready Inds.

Interglobe

Indo Count

Info Edge

Kaveri Seed

Manpasand

MCX

Monsanto

Navneet Educat.

Oberoi Realty

PI Inds.

Piramal Enterp.

Quess Corp

SRF

S H Kelkar

Team Lease Serv.

Trident

UPL

V-Guard

1 Day (%)

-1.7

1.1

-1.0

0.9

0.8

-2.3

0.9

1.9

-0.5

-0.8

5.4

1.1

-0.7

0.0

-1.4

-1.7

5.3

-0.2

1.4

2.6

0.3

0.2

-0.1

0.3

0.1

0.2

1M (%)

-2.3

11.0

-1.1

-6.2

4.2

-4.2

-10.0

-1.6

2.1

-11.6

-2.2

0.5

-6.8

3.0

2.2

-1.0

14.9

5.5

-10.5

5.5

-1.0

-2.8

-0.3

-8.1

0.3

6.0

12M (%)

-0.7

42.6

-18.1

-0.2

59.9

85.2

62.8

47.4

-45.7

53.8

-5.5

5.9

-32.2

2.5

-3.9

53.4

1.9

25.4

53.9

17.7

-6.4

142.1

-13.3

0.0

30.1

12 March 2018

THEMATIC/STRATEGY RESEARCH GALLERY

REPORT GALLERY

RECENT INITIATING COVERAGE REPORTS

DIFFERENTIATED PRODUCT GALLERY

Explanation of Investment Rating

Investment Rating

BUY

SELL

NEUTRAL

UNDER REVIEW

NOT RATED

Expected return (over 12-month)

>=15%

< - 10%

> - 10 % to 15%

Rating may undergo a change

We have forward looking estimates for the stock but we refrain from assigning recommendation

*In case the recommendation given by the Research Analyst becomes inconsistent with the investment rating legend, the Research Analyst shall within 28 days of the inconsistency, take appropriate measures to make the recommendation consistent with the investment rating legend.

Disclosures:

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MOSL, it’s associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have beneficial ownership of 1% or more securities in the subject company at

the end of the month immediately preceding the date of publication of the Research Report.

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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 associates of MOSL even though there

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this document. This should, however, not be treated as endorsement of the views expressed in the report. MOSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result,

the recipients of this report should be aware that MOSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or

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specific recommendations and views expressed by research analyst(s) in this report.

Disclosure of Interest Statement



Analyst ownership of the stock

Companies where there is interest

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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:

Disclaimer:

The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person 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: SEBI Registration: INZ000158836 (BSE/NSE/MSE); 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

13 December 2016