Company Connect
Key takeaways from conference interactions
The companies which participated in the
Motilal Oswal 5th
Annual Global Investor Conference
offer a healthy variety
in terms of sector, size, geography, business model, etc.
One thing is common though: together, these companies form
the
creamy layer
of India’s capital markets. The 70 companies
are less than 2.5% of the total 3,000+ listed companies in
India. But they account for
40% of sales, 57% of profit
and 50% of India’s total listed market cap.
The following pages provide key takeaways from our
interactions with these companies. We believe that many of
Research Team
Rajat@MotilalOswal.com
these will be a significant beneficiary of
India’s Next Trillion
Dollar opportunity.

5th Annual Global Investor Conference
Index
Company
Page
Company
Page
Anant Raj Industries ............................................... 3
Axis Bank ............................................................... 4
Bajaj Auto ............................................................. 5
Bajaj Finserv .......................................................... 6
Bank of Baroda ....................................................... 7
Bank of India .......................................................... 8
Bharat Forge .......................................................... 9
Bharti Airtel .......................................................... 10
Biocon .................................................................. 11
BPCL .................................................................... 12
Central Bank of India .............................................. 13
Dabur India ........................................................... 14
DLF ...................................................................... 15
Dr Reddy’s Laboratories ......................................... 16
Everest Kanto ........................................................ 17
Financial Technologies ........................................... 18
Great Eastern Shipping ........................................... 19
Glenmark Pharmaceuticals ...................................... 20
GMR Infrastructure ................................................ 21
Godrej Consumer Products ..................................... 22
Grasim Industries .................................................. 23
GVK Power & Infrastructure .................................... 24
HDFC Bank ............................................................ 25
HDFC Standard Life ................................................ 26
Hero Honda Motors ................................................ 27
HPCL .................................................................... 28
ICICI Bank ............................................................ 29
Idea Cellular ......................................................... 30
Info Edge .............................................................. 31
Infosys Technologies .............................................. 32
Jaiprakash Associates ............................................ 33
Jet Airways ........................................................... 34
Jindal Steel & Power .............................................. 35
Larsen & Toubro .................................................... 36
Lupin .................................................................... 37
Mahindra & Mahindra ............................................. 38
Mahindra Lifespaces .............................................. 39
Marico .................................................................. 40
Maruti Suzuki ........................................................ 41
ONGC ................................................................... 42
Pantaloon ............................................................. 43
Piramal Healthcare ................................................ 44
Reliance Capital ..................................................... 45
Reliance Communication ........................................ 46
Reliance Industries ................................................ 47
Reliance Infrastructure ........................................... 48
Reliance Power ..................................................... 49
Rural Electrification Corporation .............................. 50
SBI Life ................................................................. 51
Shree Renuka Sugars ............................................ 52
Shriram Transport Finance ..................................... 53
Simplex Infrastructure ............................................ 54
Sintex Industries .................................................... 55
State Bank of India ................................................ 56
Sterlite Industries .................................................. 57
Sun Pharmaceuticals .............................................. 58
Suzlon Energy ....................................................... 59
Tata Consultancy Services ...................................... 60
Tata Steel ............................................................. 61
Time Technoplast .................................................. 62
Titan Industries ..................................................... 63
Union Bank of India ................................................ 64
Unitech ................................................................. 65
Vardhman Textiles ................................................. 66
Voltas ................................................................... 67
Wipro ................................................................... 68
Yes Bank ............................................................... 69
Zee Entertainment ................................................. 70
Zee News ............................................................. 71
August 3 - 5, 2009
2

5th Annual Global Investor Conference
Anant Raj Industries
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
ARCP IN
294.6
137
0.9
166 / 36
16 / 140 / -20
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/06A
3/07A
3/08A
3/09A
568
2,080
6,038
2,508
281
1,255
4,364
2,073
9.1
26.2
74.0
35.2
6,071.0
187.8
182.3
-52.5
15.1
5.2
1.9
3.9
8.5
2.8
1.4
1.2
11.4
10.8
15.2
6.3
23.4
19.3
26.2
8.9
8.1
4.5
0.4
0.7
11.4
5.3
0.5
0.8
Company Represented By:
Mr Amit Sarin, Director and CEO
Mr Navneet Singh,
General Manager
Key Takeaways
High quality landbank
Anant Raj Industries (ARIL) is among the largest development and construction
companies in the National Capital Region (NCR). ARIL has a fully paid land bank of
~982 acres with development potential of 77msf - largely in NCR (National Capital
Region), with 90% within 50km of Delhi and 525 acres within Delhi. As majority of
its projects are on lease basis, securitization of rentals is a likely possibility.
High revenue and cash flow visibility
ARIL has a strong project pipeline with high revenue visibility. It has two IT SEZs,
~1.8msf at Manesar (70% leased) and ~2.1msf in Rai. ARIL has two retail properties
in Delhi at Karol Baug (100% leased) and Keerti Nagar (50% leased out). Further,
five of its hotel projects are likely to be operational from FY10 onwards. Of these,
two hotel projects have been leased out to Park Lane.
ARIL is likely to launch two residential projects totaling ~0.6msf in prime areas in
Delhi - Hauzkhas (80 units) in FY10 and Bhagwandas (80 units) in FY11. The
management expects average rates of Rs20,000-25,000/sf from these two projects.
According to the management, the aforementioned projects are likely to generate
Rs1.1b of rental income, which is likely to increase to Rs2.25b in FY11. During
1QFY10, ARIL's rental income stood at Rs100m. Further, the management is targeting
revenues of Rs7.5b in FY10 and Rs12b in FY11 from the two planned residential
launches in prime areas of Delhi. The management estimates that ARIL would require
Rs3b for the construction of its existing and planned projects.
To utilize net cash for new project acquisitions
As of June 2009, ARIL has net cash of ~Rs7b, and ~Rs4b net of construction cost of
Rs3b. ARIL sold land at Gurgaon for Rs800m during 1QFY10.
The management plans to utilize these funds to acquire distressed assets. ARIL has
acquired ~3.4msf for a total consideration of ~Rs1.6b, which is required to be paid
over a period 3-4 months. These include Noida (1.8msf at Rs600/sf), Gurgaon
(0.2msf at Rs800/sf) and Manesar (1.4msf at Rs350/sf).
Further, ARIL has formed strategic JVs with key investors: (i) JV with Reliance ADA
Group to develop 2 hotel projects and an IT SEZ, (ii) JV with Monsoon Capital to
develop ~1.8msf commercial project in Panchkula, Haryana, and (iii) co-investment
agreement with the Government of Singapore (GIC) to pursue investment
opportunities in infrastructure development and hospitality.
Valuation and view
We believe ARIL is well placed to combat the challenges faced by the real estate industry
owing to its high net cash of Rs7b, and high cash flow and revenue visibility.
Not Rated.
Covering Analyst(s):
Siddharth Bothra
+91 22 3982 5407
SBothra@MotilalOswal.com
Mansi Trivedi
+91 22 3982 5430
Mansi.Trivedi@MotilalOswal.com
August 3 - 5, 2009
3

5th Annual Global Investor Conference
Axis Bank
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
AXSB IN
357.7
851
6.4
974 / 278
-6 / 42 / 6
YEAR
END
NET INCOME
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
CAR
(%)
ROAE
(%)
ROAA
(%)
P/ABV
(X)
(RS) GROWTH (%)
3/08A
3/09A
3/10E
3/11E
43,808
65,831
81,507
97,259
10,710
18,154
21,554
26,082
29.9
50.6
60.0
72.7
28.0
68.9
18.7
21.0
28.4
16.8
14.2
11.7
3.5
3.0
2.6
2.2
13.7
13.7
12.4
11.4
17.6
19.1
19.4
20.0
1.2
1.4
1.3
1.3
3.5
3.1
2.7
2.3
Company Represented By:
Mr Somnath Sengupta,
President-Finance and Accounts
Mr Shishir Mankad,
VP - Finance and Accounts
Key Takeaways
Growth outlook moderated
Management sees industry loans growing 16-17% in FY10. Axis Bank aims to grow
its loan book at 20-25% instead of 25% as announced earlier. While sanctions are
picking up, disbursals could take longer.
Infrastructure, cement, steel are likely to lead the growth based on existing sanctions
available. On the retail book, mortgages and car financing are the loan growth
drivers.
While the yield on funds is expected to fall (due to pressure on loan growth and
pricing), margins will stay at 3.25-3.5% as a fall in the cost of funds is expected to
compensate for falling yields.
Management believes it can sustain a CASA ratio at 40% going forward.
The borrower-wise outstanding restructured loan book was Rs22.6b or 2.9% of the
loan book in June 2009. This number will rise in 2QFY10. Corporates including SME,
comprise 90% of the restructured loans spread across 200 accounts.
Management believes fee income will grow at least in line with loan-growth. The
management targets a cost-to-income ratio of 40-45% against 45-50% earlier.
By the end of FY10, Tier-I CAR is seen falling to 8% from 9.4% currently.
Valuation and view
We expect Axis Bank to report EPS of Rs60 in FY10 and Rs73 in FY11. BV will be Rs333
in FY10E and Rs392 in FY11E. ABV is expected to be Rs318 in FY10E and Rs370 in
FY11E. RoA and RoE are seen to be strong at 1.3% and more than 19% over FY10-11E.
Maintain
Buy
with a target price of Rs980 (2.5x FY11E BV).
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009
4

5th Annual Global Investor Conference
Bajaj Auto
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
BJAUT IN
144.7
1,283
3.9
1358 / 262
21 / 107 / 136
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A
3/09A
3/10E
3/11E
90,462
88,104
97,963
105,177
8,241
7,963
11,994
12,828
57.0
55.0
82.9
88.7
-3.4
50.6
6.9
20.2
23.3
15.5
14.5
10.5
11.0
7.4
5.5
51.9
47.2
47.9
38.1
42.4
36.3
43.7
38.5
1.8
2.1
1.8
1.6
12.4
15.3
9.8
8.9
Company Represented By:
Mr Kevin D'sa, VP - Finance
Key Takeaways
Product launches may drive volume growth
Bajaj Auto expects to post double-digit volume growth in FY10.
It sees flat-to-marginally positive export volumes.
Management hopes volume will be driven by new products such as Pulsar (35-
40,000/month) and Discover 100 (25,000/month).
Higher three-wheeler volume and the planned launch of three-wheeler goods and
passenger vehicles will support volumes.
EBITDA margins sustainable
1QFY10 EBITDA margin improvement of 430bp QoQ (800bp YoY) to 19.5% was
driven by higher hedged forex rate and higher operating leverage.
The company has secured steel contracts until December as it entered into fresh
contracts from July 1, which gave it a price rise of 2-3%. On aluminum it has
contracts until September 09.
Hence EBITDA margins will be sustainable in 2QFY10.
But the launch of the 100cc "volume" bike will dilute margins from 1QFY10 levels as
it will earn lower-than-average margins.
Sees ramp-up at Pantnagar
Bajaj Auto plans to ramp-up operations at its Pantnagar plant, where it enjoys fiscal
incentives.
From 41,000 units in April 09, it is targeting a ramp-up to 60,000/month (1,15,000
units in 1QFY10).
It makes the Platina, Platina 125 and XCD 135 at Pantnagar. It plans to produce 50%
of its "volume" bike at Pantnagar and the rest at Chakan.
Other takeaways
Finance availability for two-wheelers not improved. Out of the 25% of vehicles sold
on credit, Bajaj Auto Finance financed most of them.
Indonesian operations, which lost Rs600m in FY09 (Rs110m loss in 1QFY10), is
seen to break even in FY11.
Focus on the African market, where competition comes from Chinese firms.
Plans to boost market share by increasing investment in advertising, marketing and
distribution.
Valuations and view
Volume recovery in domestic and exports, coupled with higher hedged forex rates will
boost profitability. Higher volumes and market share recovery will be a catalyst for the
stock. It trades at 15.5x FY10E EPS and 14.5x FY11E EPS. Maintain
Buy.
Covering Analyst(s):
Jinesh Gandhi
+91 22 3982 5416
Jinesh@MotilalOswal.com
August 3 - 5, 2009
5

5th Annual Global Investor Conference
Bajaj Finserv
Company Represented By:
Mr Sanjiv Bajaj, MD
Mr Ranjit Gupta, President (Ins)
Mr S Sreenivasan, CFO (Gen. Ins)
Key Takeaways
Life insurance business (Bajaj Allianz Life Insurance)
The company will continue to focus on profitability and operational/capital efficiency
rather than market share. Over a longer period, it believes that 15-20% RoE is
possible from this business. While its reported NBAP is ~19%, it is having an expense
under run currently.
Private life insurance companies are expected to grow 10-15% annually. Bajaj Allianz
Life Insurance would be content to consolidate for one or two years as the industry
rationalizes before growing in double digits.
Bajaj Allianz's business model includes: (1) higher exposure to low ticket sizes and
Tier III/IV cities, and (2) low cost working. The management believes this makes its
proposition unique for sustaining the downturn.
The company expects distributors' commissions to decline so that the customer
gets the best return in the final analysis.
Bajaj Allianz Life Insurance does not foresee strong competition from newer players
as ability to burn capital will be a constraint for them.
General insurance business (Bajaj Allianz General Insurance)
Bajaj Allianz General Insurance will continue to focus on profitable motor and health
insurance products.
In the near term, the company will focus upon preserving profitability, maintaining
market share and effectively utilizing capital.
Bajaj Auto Finance
The company will focus on gradual pace of organic growth. It has also tightened
credit standards.
The company will also launch construction equipment finance business.
For improving profitability the company plans to: (1) focus on reducing operating
expenses, (2) explore portfolio acquisition (to leverage capital), and (3) cross-sell
products.
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009
6

5th Annual Global Investor Conference
Bank of Baroda
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
BOB IN
365.5
437
3.4
485 / 170
-6 / 4 / 40
YEAR
END
NET INCOME
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
CAR
(%)
ROAE
(%)
ROAA
(%)
P/ABV
(X)
(RS) GROWTH (%)
3/08A
3/09A
3/10E
3/11E
59,628
78,811
79,242
93,671
14,355
22,272
22,382
27,878
39.3
60.9
61.2
76.3
39.8
55.1
0.5
24.6
11.1
7.2
7.1
5.7
1.6
1.4
1.2
1.0
12.9
14.1
13.5
12.9
15.8
20.9
18.0
19.4
0.9
1.1
0.9
1.0
1.7
1.4
1.2
1.1
Company Represented By:
Mr R K Bakshi, ED
Dr Rupa Nitsure, Chief economist
Key Takeaways
Focus on qualitative growth
The management is confident of growing assets at a pace higher than industry. The
bank's FY10 loan growth is seen at 22%.
CASA remains the key focus area and management is reluctant to fund asset growth
through bulk deposits. BoB's CASA ratio at 35% and CASA growth at 18-20% is one
of the best among its peers.
The 1QFY10 margin decline (2.37% from 2.91% in 4QFY09), is an aberration, not a
trend. With loan growth picking up and downward re-pricing of deposits, management
is sure of achieving sustainable 2.7% NIM by FY10.
Management believes fee-income growth will be at least in line with loan growth
due to the diversified nature of fee income.
Management is focusing on improving its cost-to-income ratio and sees higher
operating leverage in future.
BoB's asset quality is among the best with net NPA at 0.3% and coverage of 82%.
Restructured loans, which comprise 2.8% of the book, remain the best among its
peer banks. The management foresees no large account restructuring in the near
future. Management indicated it would not compromise asset quality to gain market
share.
Management is confident of sustaining at least 1% RoA and 18% RoE.
Valuation and view
We expect BoB to post EPS of Rs61 in FY10 and Rs76 in FY11.
BV will be Rs364 in FY10E and Rs422 in FY11E.
RoA will be 0.9-1%+ and RoE at 18-19% over the next two years.
The stock trades at 1x FY11E BV and 5.7x FY11E EPS. Maintain
Buy
with top pick
status.
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009
7

5th Annual Global Investor Conference
Bank of India
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
BOI IN
525.9
338
3.7
369 / 179
-10 / -33 / 4
YEAR
END
NET INCOME
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
CAR
(%)
ROAE
(%)
ROAA
(%)
P/ABV
(X)
(RS) GROWTH (%)
3/08A
3/09E
3/10E
3/11E
63,461
85,508
87,397
103,276
20,094
30,077
31,161
36,693
38.2
57.2
59.3
69.8
66.0
49.7
3.6
17.8
8.9
5.9
5.7
4.8
2.0
1.5
1.2
1.0
12.0
13.0
12.7
12.7
27.6
29.2
23.9
23.1
1.3
1.5
1.3
1.3
2.1
1.6
1.3
1.1
Company Represented By:
Mr A A Badshah,
GM – Treasury
Mr S K Datta,
DGM – Credit Monitoring Dept
Mr Ravi Kumar, DGM
Key Takeaways
Strong liquidity putting pressure on margins; expected to improve in 2H
In 1QFY10, margins declined 56bp QoQ to 2.4% (margins are down 98bps since
3QFY09) due to surplus liquidity and weak pricing power.
Going forward, the management sees improving margins: (1) 17% of outstanding
deposits carrying 9%+ rate of interest are expected to get repriced to ~7% (3% in
2Q, 11% in 3Q and 3% in 4Q), and (2) credit offtake is expected to be strong (it
already has ~Rs170b of sanctions in hand).
On the back of fall in bulk deposits, cost of deposits is expected to decline by 12bp
in 2QFY10, 25bp in 3QFY10 and 55bp in 4QFY10.
Outlook on business growth
The management is targeting a FY10 business mix of Rs4t (up 20% YoY), with loan
growth of 20-22%.
After a steep decline in CASA deposits from 36% in FY08 to 31% in FY09, it has
improved to 32% in 1QFY10. Management aims to improve it further to 35% by
FY10 and 40% by FY11.
In 1QFY10, fee income growth (ex forex) was lower at 13% YoY. The management
expects it to improve to 25% for the full year FY10. It also expects 25% growth in
forex income.
As most of the CBS related expenses have been up-fronted and large retirements
are expected (average age at 51), operating cost growth could remain in single
digit despite adding 2,000 employees every year.
In FY10, Bank of India plans to add 150 branches, 500 ATMs and 6m customers
(2.2m already added in 1QFY10).
Valuation and view
We expect BoI to report FY10 EPS of Rs59 (4% growth) and FY11 EPS of Rs70 (18%
growth) in FY11.
BV would be Rs272 in FY10 and Rs332 in FY11.
The stock trades at a P/E of 4.8x FY11E EPS and P/BV of 1x FY11E BV.
We maintain
Neutral
due to relatively higher concerns on asset quality for the
bank.
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009
8

5th Annual Global Investor Conference
Bharat Forge
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
BHFC IN
237.3
241
1.2
283 / 69
64 / 130 / -12
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/06A 29,715
03/07A 41,489
03/08A 45,976
03/09A 47,112
2,505
2,835
2,908
411
10.8
12.1
12.4
1.7
-77.7
12.0
2.8
-86.5
144.0
3.3
28.2
20.6
18.5
2.5
18.8
14.0
12.2
2.8
1.5
19.7
Company Represented By:
Mr Amit Kalyani,
Executive Director
Key Takeaways
Initial signs of improvement, after witnessing worst in 3Q/4QFY09
Volumes in Bharat Forge's (BFL) key CV segment have witnessed improvement in
all geographies as 3Q/4Q witnessed significant correction in inventory.
BFL has taken initiatives to bring down breakeven capacity utilization in all the
geographies. Currently, it would breakeven at ~50% utilization in US & EU and
~35% in India. Excluding one-offs, its global operations should be near break-even
levels, whereas India operations are profit making.
It has witnessed no bad debts in any of the geographies. It doesn't have any direct
exposure to OEMs like GM, Chrysler, etc; however, it supplies to them through tier-
I vendors like ZF AG. Further, its exposure to GM has reduced from 60-65% to 35%.
Significant opportunity arising from structural shift in the industry
The global economic crisis has resulted in two key trends: (1) bankruptcy of its
peers, and (2) focus on small cars.
Bankruptcy of its global competitors provides BFL an opportunity to move up the
value chain, as global OEMs replace troubled tier-I suppliers with BFL.
Shift in demand towards smaller fuel efficient cars augurs well for BFL, as global
OEM's with integrated facilities for SUVs and pick-ups, are not willing to invest in
new facilities, resulting in higher outsourcing.
Focus on doubling non-auto contribution to revenues to 40% by FY13
As against 20% currently, BFL is targeting 40% of revenue from non-auto businesses
by 2012 and 60% by 2015. This is mainly turbine generators (TG), and heavy forgings
for nuclear, hydro power and wind turbine generators. This is expected to improve
EBITDA margin, RoCE and cash generation.
BFL has entered into a 50:50 JV with Alstom for manufacturing supercritical TG with
capacity of 5,000MW by FY13. The JV has already participated in bulk project awards
from NTPC (11*660MW).
BFL has also entered into a JV with Areva for heavy forgings to cater to the nuclear
market in India. The JV would have assured procurement of up to 70% from Areva.
The JV will cater to nuclear power, hydro power etc, and will have a 14,000 ton
forging press which would be operational by 2012.
The Maharashtra government has signed an LoI with Areva to set up 10,000MW of
nuclear power capacity at a cost of Rs650b. This could be substantial opportunity
for the forging JV.
Valuations and view
The stock currently trades at 33x FY10E consolidated consensus EPS of Rs7.3 and 22.3x
FY11E consolidated consensus EPS of Rs10.8. We do not have rating on the stock.
Covering Analyst(s):
Jinesh Gandhi
+91 22 3982 5416
Jinesh@MotilalOswal.com
August 3 - 5, 2009
9

5th Annual Global Investor Conference
Bharti Airtel
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
BHARTI IN
3795.2
401
32.1
518 / 242
-11 / -47 / -11
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A 270,250
3/09A 369,615
3/10E
3/11E
67,008
84,699
17.7
22.3
27.5
31.1
57.4
26.4
23.2
12.8
22.7
18.0
14.6
12.9
6.7
4.8
4.0
3.1
36.9
31.4
30.0
27.1
25.8
23.8
21.5
21.2
5.8
4.3
3.7
3.2
13.8
10.5
8.7
7.4
420,025 104,388
468,526 117,761
Company Represented By:
Mr Akhil Gupta, Director
Mr Harjeet Kohli,
Group Treasurer
Key Takeaways
Rural market remains attractive
Bharti remains sanguine about the rural markets and believes that economic growth
in rural India would continue unabated.
Rural India accounted for ~55% of wireless subscriber additions for Bharti in 4QFY09.
This share is likely to expand going forward, as wireless penetration in rural India
still remains significantly low at 15-16% as against ~35% for the overall Indian
market.
ARPU in rural markets remains attractive at ~2/3rd of the overall Indian market
ARPU.
Low tariffs (high affordability) is the safety net against competition
Bharti believes that very low tariffs prevailing in the Indian market are the biggest
safety net for incumbents against increasing competition.
Bharti's significant coverage advantage would ensure that incremental margins are
in line with the current margin profile.
Mr Gupta also emphasized on the secular demand growth in telecom services,
which leads to stable industry outlook.
3G likely in late CY09/early CY10
Bharti expects 3G spectrum auction/allocations in late CY09/early CY10.
The company believes that wireless is the only viable option for India to improve
broadband reach.
WCDMA/HSPA is likely to be the preferred technology for providing broadband.
High tariffs, low penetration makes Africa an attractive market
Mr Gupta believes that high tariffs and relatively low penetration in Africa makes it
an attractive market for Bharti.
Scope for cost and tariff reductions could trigger significant volume growth opportunity
in the African markets.
Valuations and view
Bharti trades at an EV of 7.4x FY11E EBITDA and 12.9x FY11E EPS.
Bharti remains best-placed, given low capex intensity, un-leveraged balance sheet,
and scale advantage.
Maintain
Buy
with a target of Rs492.
Covering Analyst(s):
Shobhit Khare
+91 22 3982 5428
Shobhit.Khare@MotilalOswal.com
August 3 - 5, 2009
10

5th Annual Global Investor Conference
Biocon
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
BIOS IN
200.0
235
1.0
243 / 85
-2 / 55 / 14
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/08A 10,542
03/09A 16,091
03/10E 21,257
03/11E
23,616
2,250
935
2,574
3,033
22.5
4.7
12.9
15.2
12.4
-79.2
175.4
17.8
10.4
50.2
18.2
15.5
1.6
3.1
2.7
2.4
15.2
6.2
15.1
15.6
13.6
6.2
15.8
16.2
4.2
3.0
2.2
1.9
14.9
14.9
10.6
9.3
Company Represented By:
Mr Murali Krishnan K N
President - Group Finance
Key Takeaways
Contract research, insulin to be drive growth in the medium term; Long-term
benefits from Biogenerics
Contract research to grow at over 20% in FY10:
Biocon's contract research
subsidiary (Syngene) recently began to execute the BMS contract, which is likely to
gradually ramp up over the next few quarters. This business is expected to record over
20% growth in FY10. We estimate 26% CAGR for this business over FY09-11.
Multiple initiatives in Insulin space:
Biocon continues its insulin filings in emerging
markets with few approvals to come through annually for the next two years. It also
has tie-ups in regulated markets for supply of insulin crystals. Its oral insulin NCE
recently started Phase-III trials in India. We believe Biocon's insulin initiative (API,
formulation & NDDS) will be a key growth driver in the coming years.
Biogeneric collaboration with Mylan is long-term positive:
Biocon entered
into collaboration with Mylan (USA) for development, manufacture and distribution
of biogenerics. Mylan and Biocon will share development, capital and certain other
costs to commercialize biogenerics. This is a long-term positive for Biocon as it gets
a partner to share development costs and Biocon can leverage Mylan's distribution
strengths in the US and Europe. The cost of sharing will ensure that Biocon's P&L
does not get overburdened by the costs of developing biogenerics. But revenue
from this tie-up is expected to start accruing only after two or three years. In the
interim Biocon will be entitled to milestone payments from Mylan.
Biocon to R&D expenses:
Management says R&D expenses are likely to increase
to 8% of revenue over the next two years as some of the NCEs progress into clinical
trials. Biocon expects to complete Phase-III trials for its oral insulin NCE in the next
12 months and expects to launch it in India in FY11 after which it will explore the
possibility of out-licensing the NCE for developed markets.
Targets domestic formulation revenue of Rs5b over 3-5 years:
Biocon
entered the domestic formulations market three years ago and generated revenue
of over Rs1b in FY09. Management targets revenue of Rs5b from this initiative over
the next three to five years.
Valuation and view
Key growth drivers for FY10E will be traction in Biocon's insulin initiative, contribution
from immuno-suppressants and ramp-up in the contract research business. But higher
R&D costs, increased depreciation and higher expenses, linked to the scale-up of the
domestic formulations business, will continue to temper earnings growth. We expect
FY10 EPS of Rs13 (up 176% on a low base) and FY11 EPS of Rs15.2 (up 17.8%). The
stock is valued at 18.2x FY10E and 15.5x FY11E earnings. Maintain
Buy.
11
Covering Analyst(s):
Nimish Desai
+91 22 3982 5406
NimishDesai@MotilalOswal.com
August 3 - 5, 2009

5th Annual Global Investor Conference
BPCL
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
BPCL IN
361.5
501
3.8
523 / 226
0 / -46 / 43
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/08A
03/09A
03/10E
03/11E
1,112
1,366
1,089
1,132
15.1
6.3
15.2
16.6
41.9
17.5
42.0
46.0
-28.3
-58.1
139.6
9.5
12.0
28.6
11.9
10.9
1.4
1.4
1.2
1.1
12.5
4.8
10.9
10.9
8.5
6.1
7.0
9.5
0.3
0.3
0.3
0.3
9.3
12.0
8.0
6.4
* Consolidated
Company Represented By:
Mr Ashok Sinha, CMD
Mr S K Joshi, Director (Finance)
Mr Rajoo Natekar,
General Manager (Treasury)
Key Takeaways
Sees no subsidy burden in FY10:
BPCL believes that in FY10 there will be no subsidy
burden on OMCs (oil market companies) as per government indications. In 1QFY10 the
auto fuel subsidy burden was shared by upstream companies (ONGC, OIL and GAIL).
Though the government did not share the burden in 1QFY10, BPCL expects it do so
subsequently.
Sees FY10 under-recoveries of Rs400b:
BPCL expects FY10 under-recoveries for
all three OMCs (HPCL, BPCL and IOC), to be Rs400b, based on the first four months of
FY10, and assuming the current oil price for the rest of FY10. Under-recoveries for auto
fuels is estimated at Rs100b and for cooking fuels at Rs300b. Current under-recoveries
are estimated at Rs2.5/ltr for petrol, Rs1.5/ltr for diesel, Rs16/ltr for PDS kerosene and
Rs160/cylinder for domestic LPG.
Capex plan update, Kochi expansion completed:
BPCL is upgrading its Mumbai
and Kochi refinery to produce Euro III/IV auto fuel and is expanding capacity at Kochi.
Completion of the key projects is expected by 4QFY10. Its planned capex is Rs12b at
Mumbai and Rs40b in Kochi. Management indicated that it has hooked up the expanded
Kochi capacity of 40kbd on August 2.
BPCL to be almost self-sufficient in fuel requirement after Bina refinery:
The
Bina refinery with 120kbd capacity and Rs104b capex is on track for scheduled mechanical
completion in December 2009. BPCL's current product shortage in northern India will be
taken care of after the Bina refinery is commissioned.
Focus on asset turnover in retail business:
BPCL has the highest throughput per
outlet at 205KL/month and its focus is on continually improving its asset turnover in the
retail business. The management indicated it achieved savings in inventory and working
capital through initiatives such as shifting payments from its dealers to online system
and real time inventory management in key high volume retail outlets.
BPCL continues E&P journey:
BPCL has 26 E&P blocks, of which only nine are in
India. Its block in Brazil recorded a discovery and is likely to enter into the appraisal and
development phase soon. BPCL is also gearing up for participation in the forthcoming
NELP round.
Valuation and view:
We assume oil price of US$60/bbl in FY10 and US$65/bbl in
FY11. We build OMCs' share in under-recoveries at 20%. We estimate BPCL's EPS at
Rs42 in FY10 and Rs46 in FY11. At a CMP of Rs501/share BPCL quotes at a PER of 11.9x
FY10E and P/BV of 1.2x FY10E. Maintain
Buy.
Covering Analyst(s):
Harshad Borawake
+91 22 3982 5432
HarshadBorawake@MotilalOswal.com
August 3 - 5, 2009
12

5th Annual Global Investor Conference
Central Bank of India
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
CBOI IN
404.1
103
0.9
106 / 30
-2 / 93 / 52
YEAR
END
NET INCOME
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
CAR
(%)
ROE
(%)
ROA
(%)
P/ABV
(x)
(RS) GROWTH (%)
3/06A
3/07A
3/08
3/09E
29,649
31,134
30,161
32,984
2,574
4,980
5,522
5,712
7.9
15.4
13.7
14.1
-28.0
93.5
10.9
14.1
12.9
6.7
7.5
7.3
1.6
1.3
1.3
1.2
11.0
10.4
10.4
13.1
12.6
21.5
16.8
14.4
0.4
0.6
0.5
0.4
1.7
1.8
1.8
1.5
Company Represented By:
Mr S Sridhar, CMD
Mr Arun Kaul, Executive Director
Key Takeaways
Profit growth over business
Central Bank of India (CBoI) management's current focus is to grow profits than balance
sheet size. Its thrust areas are: (1) other income growth, (2) reducing dependence of
bulk business (loans as well as deposits), and (3) reducing NPAs and recovering written-
off accounts.
Margins seen at 2.25% by March 2010 from 1.8% currently
Cost of funds is likely to fall as ~30% of deposits carrying 10%+ rate of interest are
coming up for repricing in the rest of FY10. Yield on loans is expected to improve due to
increasing share of retail and SME loans. Improvement in CD ratio (64% as on 1QFY10)
and higher share of low cost deposits should also help improve margins.
Operating leverage to boost return ratios
Staff cost growth is likely to remain low as 2,500-3,000 employees are expected to
retire every year over the next three years. Complete CBS rollout (100% by September
2009) is also expected to reduce cost of operations.
CAR to remain above 13%
CBoI's CAR stood at 13.4% with Tier I ratio of 7.17%. Government of India has recently
infused Rs7b and is expected to infuse 7b more in FY10. We believe capital is not a
constraint for growth in the near term.
Asset quality a focus area
In 1QFY10, GNPA declined 4% QoQ to Rs22.3b and provision coverage ratio stood strong
at 73%. Cumulative restructured loans stood at 35b (~4% of book). The management
claims that higher share of corporate lending (~68%) will help to improve asset quality.
CBoI has written off asset pool of Rs40b where recoveries can be significant in
management's view.
Other highlights
CBoI has recently launched 'Operation Nav Chetana' to rejuvenate its staff, branches
and client coverage. It has also opened 14 centralized credit processing centers to
increase flow of credit to the retail sector. Large- and mid-corporate vertical branches
have been opened and six asset recovery branches have also been established.
Valuation and view
CBoI trades at 7.3x FY09 EPS of Rs14.1, 1.2x FY09 BV of Rs86 and 1.5x FY09 ABV of
Rs68. RoA was lower at 0.43% and RoE was at 14.4% on back of higher leverage. We
have no rating on the stock.
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009
13

5th Annual Global Investor Conference
Dabur India
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
DABUR IN
864.0
140
2.5
142 / 60
-5 / -21 / 46
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/08A 23,610
03/09A 28,054
03/10E 34,074
03/11E
39,761
3,337
3,912
4,620
5,518
3.9
4.5
5.3
6.4
17.7
17.1
18.2
19.4
36.2
30.9
26.2
21.9
18.8
14.3
10.8
8.4
54.0
47.8
43.1
40.1
55.6
44.6
44.3
45.3
4.9
4.1
3.4
2.8
28.0
24.2
19.3
16.0
Company Represented By:
Mr Sunil Duggal, CEO
Key Takeaways
Volume leads growth; No impact of monsoons on sales yet
Dabur's growth story (led by volumes) continues with 13% volume growth in FY09, 16%
in 1QFY10. July sales maintained the momentum with no visible impact of the delayed
monsoon on demand. Management indicated government spending on NREGS and other
initiatives might keep intact demand growth in the near term. But deficient monsoons
next year might hurt consumer demand.
Fem Care is the missing link
Dabur's management indicated that with its purchase of Fem Care it acquired a missing
link in its portfolio, giving it market leadership in niche skin-care category. The
management is focused on boosting sales growth and profitability. Dabur launched Fem
herbal bleach and plans to focus on new skin solutions, distribution expansion and
marketing.
New launches to boost sales; enters niche categories
Hair care has been augmented with Dabur Protect Shampoo (positioned as a family
health shampoo), Amla Flower Magic and Dabur Almond Hair Oil. Dabur test launched
its new ayurvedic skin-care range under the brand Uveda. The brand will be present in
the face-wash, moisturizer and fairness-cream segments and is priced at par with
Garnier and Everyuth. Dabur will use Uveda for its skin-care products and the Vatika
brand only for hair-care products. Real Burrst's full-scale launch is expected next year.
Home care to stay competitive, Hair care, shampoos to maintain momentum
The home-care segment is growing at 8-10% against expectations of 20-25% CAGR.
Competition is stiffening in this category from launches by branded players and private
labels. Hair-oils and shampoos are expected to keep growing strongly. Dabur is short of
capacity in shampoos and can increase sales growth further. Hair-oil growth will be led
by volumes in the medium term.
Valuation and view
We estimate 18% EPS CAGR FY09E-11E. The stock trades at 26.2x FY10E EPS of Rs5.3
and 21.9xFy11 EPS of Rs6.4. Maintain
Buy.
Covering Analyst(s):
Amnish Aggarwal
+91 22 3982 5404
AmnishAggarwal@MotilalOswal.com
Amit Purohit
+91 22 3982 5418
AmitPurohit@MotilalOswal.com
August 3 - 5, 2009
14

5th Annual Global Investor Conference
DLF
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
DLFU IN
1714.4
391
14.1
580 / 124
13 / 106 / -36
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
(RS)
EPS
GROWTH (%)
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
SALES EBITDA
3/08A 144,329
3/09A 100,440
3/10E
3/11E
58,593
74,404
78,120
46,292
23,246
32,871
45.8
26.9
13.5
19.1
262.8
-41.3
-49.8
41.4
8.5
14.6
29.0
20.5
3.8
3.0
2.7
2.4
39.7
18.7
8.6
10.9
43.0
15.5
7.9
11.2
5.3
8.2
13.2
10.1
7.9
14.9
23.2
16.4
Company Represented By:
Mr Anurag Kalra,
VP-Investor Relations
Key Takeaways
Concern on high outstandings from DAL reduces
During 1QFY10, the promoters of DLF raised Rs38b by selling ~9.9% of their stake
in DLF. Of this, ~Rs19b was utilized to reduce outstandings from DLF Assets (DAL)
while the balance is likely to be utilized to buy out DE Shaw's 75% stake in DAL.
The management stated that DLF is likely to pick up a stake in DAL based on the
valuation at which DLF buys out DE Shaw's stake in DAL.
According
to
the
management, the valuation exercise is currently underway and is likely to be finalized
over the next 2-3 months.
Debt to decline to Rs75b-80b in FY10, largely aided by asset sales
Net debt is likely to be reduced to Rs75b-80b in FY10 from Rs140b during 1QFY10,
mainly aided by sale of non-strategic assets. The company plans to reduce its
leverage to 0.3x in FY10 from 0.5x currently. DLF does not have any major debt
repayment obligation for another 2-3 years.
The management is hopeful of achieving its target of Rs55b of asset sales in FY10.
DLF is in advanced stages of negotiation for assets worth Rs25b-30b, which include
(i) wind power assets - Rs10b, (ii) refund from government agencies for discontinued
projects ~Rs4b, and (iii) land for hotel projects - Rs5b-6b.
Residential launch plans focus on lucrative city-centric projects
To boost its cash flow position, DLF plans to focus on launching city-centric projects.
It has plans to launch 17-18msf of residential projects in FY10 comprising (i) 8-9msf
of city-centric projects priced at Rs5,000-8,000/sf across Chennai, Kochi, Delhi and
Gurgaon and (ii) 5-8msf of affordable/mid-income housing projects priced at Rs2,500-
3,000/sf in key cities in South India and NCR.
According to the management, DLF is likely to launch phase II of SBM, Delhi at 15-
20% higher rates than its previous launch.
Construction activity has picked pace
Area under construction increased by ~8msf to 42msf during 1QFY10, after about
three quarters of negligible activity. DLF has commenced construction on (i) residential
projects in New Gurgaon and (ii) commercial complexes in New Delhi and Kolkata.
Further, it is likely to commence construction on its SBM Delhi project during 2QFY10.
Valuation and view
Our NAV estimate for DLF is Rs360/share. Once DLF resolves its DAL outstanding issue,
it would address much of the negative overhang on the stock. The stock trades at 2.5x
its adjusted book value of Rs154 and 9% premium to its NAV of Rs360/share. Progress
on debt leveraging and subsequent business revival in the commercial and retail verticals
could lead to higher valuation multiples for DLF. Maintain
Buy.
15
Covering Analyst(s):
Siddharth Bothra
+91 22 3982 5407
SBothra@MotilalOswal.com
Mansi Trivedi
+91 22 3982 5430
Mansi.Trivedi@MotilalOswal.com
August 3 - 5, 2009

5th Annual Global Investor Conference
Dr Reddy’s Laboratories
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
DRRD IN
168.4
820
2.9
836 / 355
-6 / 8 / 33
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/09A*
03/10E*
03/10E
03/11E
03/11E*
69,441
70,832
68,734
76,031
79,481
-5,169
8,020
7,286
8,557
10,121
-30.7
47.6
43.3
50.8
60.1
-210.6
-26.8
19.0
16.2
3.3
2.9
2.6
-12.3
16.8
15.9
-3.3
14.2
13.8
2.2
2.1
2.0
12.0
12.4
11.9
17.4
38.9
* - includes patent challenge/low competition upsides
Company Represented By:
Mr GV Prasad,
Vice Chairman & CEO
Mr Kedar Upadhye,
Director - Corporate Finance
Mr Raghavender R, Deputy
Manager - Investor Relations
Key Takeaways
Strategic prioritization in generic markets:
Dr Reddy's has recently initiated
the process of realigning its presence internationally to focus on certain key
geographies and has decided to gradually exit from some of the small/marginal
markets. Focus markets for the future will be US, India, Russia & CIS, UK and
Germany.
One/two low-competition product launches in the US every year:
Mr Prasad
indicated 1-2 such opportunities every year for the next five years. Visible opportunities
include potential launch of generic Arixtra and Prilosec OTC. These opportunities
span across FY10/11. The company currently has a pipeline of 16 FTF, targeting
innovator market size of US$9b.
Aims to become tier-I player in the US:
Dr Reddy's is currently among the tier-
II players in the US and is aiming to upgrade itself to tier-I status (implying increase
in annual revenues from ~US$400m to US$1b) over the next few years. New launches
consisting of normal, low-competition and patent challenge products will help it to
achieve this goal.
Restructuring of German operations:
Given the shift from branded generics to
tender-based generics market, the company intends to restructure its Betapharm
operations, including reduction in sales force (from 110 to 50) and shift of
manufacturing to India.
Ramp-up in the biologics business:
Dr Reddy's is targeting to ramp up its biologics
business in emerging markets in the short-to-medium term and in regulated markets
in the long-term (possibly through partnerships).
GSK tie-up to bring in long-term benefits:
The tie-up with GSK gives Dr Reddy's
access to many emerging markets through GSK's distribution network, with very
low incremental investments. The tie-up includes a basket of 100 products including
normal and differentiated products. It may include biogenerics at a later date.
Guidance:
The company guided 10% topline growth and RoCE of mid-to-high teens
for FY10 on a high base of FY09. By FY13, it targets revenues of US$3b (implying
21% CAGR over FY09-13) and 25% RoCE, led mainly by the above initiatives.
Valuation and view
Traction in the branded formulations and US businesses, and focus on improving
profitability will be the key growth drivers for Dr Reddy's over the next two years.
We expect EPS of Rs43.3 for FY10 (v/s net loss for FY09) and Rs50.8 for FY11 (up
17.5%), leading to 22% EPS CAGR for FY08-11. The stock currently trades at 19x
FY10E and 16.2x FY11E core earnings. Our DCF value of generic Arixtra, Prilosec
OTC and Sumatriptan (the visible opportunities of the Para-IV/low-competition
pipeline) is Rs26/share. Maintain
Buy.
Covering Analyst(s):
Nimish Desai
+91 22 3982 5406
NimishDesai@MotilalOswal.com
August 3 - 5, 2009
16

5th Annual Global Investor Conference
Everest Kanto Cylinders
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
EKCL IN
101.2
185
0.4
327/84
-15/ -37/-48
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
(RS)
EPS
YOY (%)
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
SALES EBITDA
03/08A
03/09E
03/10E
03/11E
5,287
8,564
8,853
11,168
1,029
1,503
1,308
1,829
10.2
14.1
12.3
17.2
38.4
39.1
-13.0
39.9
13.1
15.0
10.7
2.6
2.2
1.9
26.3
24.4
16.1
19.1
24.1
21.9
14.1
17.9
2.7
2.5
2.0
8.8
9.3
7.2
Company Represented By:
Mr J Sivakumar, CFO
Mr Kishore Thakkar,
Finance Controller
Key Takeaways
Multiple factors affect 1QFY10 results
In 1QFY10 Everest Kanto's net sales fell 19% YoY, EBITDA margin fell 12pp YoY and
adjusted PAT fell 81% YoY. The weak performance was due to:
In India, CNG cylinder sales slipped due to a sharp slowdown in off-take by commercial
vehicle (CV) OEMs.
In Dubai sales were hit due to non-receipt of LCs from customers in Iran due to the
political situation there.
Margins were affected due to lower economies of scale and also drawdown of high-
cost inventories.
In the US, despite higher sales, EBIT was negative due to higher depreciation and
goodwill amortization.
In China markets are facing recession. Besides the natural-gas progress was not as
aggressive as was expected from earlier pronouncements by the Chinese
government.
2QFY10 to be better than 1Q; recovery likely from 3QFY10
In 2QFY10 Indian operations are expected to be much better than in 1QFY10 due to
pick-up in CVs, and the addition of Maruti as a client. LCs from Iran are also expected
towards the end of the quarter. Likewise, sales to Pakistan (another large market for
Dubai operations) are also starting to pick up. EBTIDA margins in 2QFY10 are seen to
be better than 1Q as the high-cost inventory has been almost fully drawn down. In the
US, some high value orders are to be executed in 2Q and 3Q. But the full impact of all
this is expected to be felt from 3QFY10.
Expansion programs broadly on track
Everest Kanto has commissioned its jumbo cylinders unit in Gandhidham. The billet-
pierced industrial cylinders unit (200,000 capacity) is expected to start commercial
production by end-2QFY10. The plate-cylinders unit in Kandla SEZ (300,000 capacity) is
due for commission in 4QFY10. The capex plan for FY10 is Rs850m.
Gas operations to start in Sep 09
From September 2009 Everest Kanto expects to buy gas from ONGC in its 73% JV
Calcutta Compressions & Liquefaction Engineering (CC&L). FY10 revenue target is only
Rs60-70m, breakeven is expected by FY11.
Valuation and view
We estimate Everest Kanto to post FY09-11 EPS CAGR of 10%. The stock trades at 15x
FY10E EPS of Rs12.3 and 11x FY11E EPS of Rs17.2. We value Everest Kanto at 15x
FY10E EPS to arrive at a target price of Rs185. Considering limited upside from current
levels we are
Neutral
on the stock.
Covering Analyst(s):
Shrinath Mithanthaya
+91 22 3982 5421
ShrinathM@MotilalOswal.com
August 3 - 5, 2009
17

5th Annual Global Investor Conference
Financial Technologies
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
FTECH IN
45.9
1,607
1.6
1625 / 382
12 / 185 / 7
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
(RS)
EPS
GR. (%)
ROE
(%)
ROCE
(%)
3/06A
3/07A
3/08A
3/09A
1,820
2,645
2,669
3,164
839
1,036
8,857
2,457
18.2
20.3
189.1
53.5
257.9
11.6
832.6
-71.7
28.4
22.3
83.3
NA
19.5
8.8
0.6
NA
Company Represented By:
Ms Vaishali Kariya,
SVP – Investor Relations
Key Takeaways
A unique business model
Financial Technologies (FTIL) is the only integrated provider of exchanges,
ecosystems and technology catering to market participants. It has 10 exchanges, 6
ecosystem ventures and market leading position in products for exchanges and
brokerages like 'Dome' and 'Odin'.
The company has a self-fueling business model with both the exchange and
ecosystem businesses feeding into each other.
The management has a goal of having equal revenue contribution from technology
and exchanges over a longer term, and expects to grow through technology and
monetization of its stakes in exchanges.
Key differentiators
Due to FTIL's extensive experience in the exchange business, its time to market is
~1/3rd compared to that of competitors.
FTIL requires lower investments to set up and run exchanges due to the use of in-
house technology, which is ~1/10th of a comparable exchange.
Capex requirement is up to US$10m for domestic exchanges, up to US$25m in
international ventures and up to US$50m in exceptional ventures.
MCX continues its market leadership, MCX-SX showing strong traction
MCX's market share increased 100bp YoY to 86% in 1QFY10
MCX-SX currently allows FX trading with regulatory approval expected shortly for
equities, interest rate derivatives and bonds.
The exchange currently enjoys 50% market share in currency trading with the other
50% belonging to NSE.FTIL owns 31% in MCX and 49% in MCS-SX.
Ecosystem ventures
FTIL has invested in eco system ventures to complement its exchanges business. It
currently has 6 such ventures in areas like warehousing, mobile payments, information
dissemination, services to credit markets, etc.
With a warehousing capacity of 1.4m tons and 569 storage facilities, FTIL subsidiary,
NBHC is the largest private player in warehousing related services.
Recent developments
The company intends to monetize its holding in MCX-SX to bring its stake in line with
the regulatory requirement of maximum 15% holding by one exchange in another, and
5% by a corporate entity in an exchange. It expects this to happen by Aug-Sep 2009.
Valuation and view
FTIL stock currently trades at 28x FY09 earnings.
Not rated.
Covering Analyst(s):
Ashwin Mehta
+91 22 3982 5409
Ashwin.Mehta@MotilalOswal.com
Vihang Naik
+91 22 3982 5436
Vihang.Naik@MotilalOswal.com
August 3 - 5, 2009
18

5th Annual Global Investor Conference
Great Eastern Shipping
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
GESCO IN
15.2
277
0.1
423 / 137
4 / -29 / -41
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
(RS)
EPS
YoY (%)
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
SALES EBITDA
03/06A
03/07A
03/08A
03/09A
20,361
21,660
31,308
38,008
8,562
9,074
14,534
14,178
54.7
57.8
92.9
91.7
26.9
5.8
60.6
-1.3
3.0
0.8
37.2
32.7
39.1
29.8
13.1
16.5
16.6
13.2
1.6
4.0
Company Represented By:
Ms Anjali Kumar,
AGM - Corporate Finance & Inv
Mr Sanket Rege, Asst Manager
Corporate Communication
Key Takeaways
Significant expansion plans on commercial and offshore side
Great Eastern Shipping (GESCO) currently owns a fleet of 37 ships comprising 31
Tankers (12 crude containers, 18 product tankers, 1 LPG carrier) and 6 dry bulk
carriers. The average age of ships is 10 years; cumulative tonnage is 2.84m DWT.
Additionally, the company has placed orders to acquire 7 more ships (5 dry bulk
carriers and 2 Tankers) with aggregate capacity of 0.68m DWT. Total capex on
these ships stands at US$437m.
The offshore business of the company is being carried out through wholly owned
subsidiary, Greatship (India) Limited, which currently owns 5 platform supply vessels
(PSVs) and 7 Anchor Handling Tug cum Supply Vessels (AHTSVs). It has entered
into in-charter agreements for 1 PSV and 1 Jack-up rig.
It plans to ramp up the offshore fleet from 12 currently to 26 by FY12 (mix of
AHTVS, rigs, etc) at a capex of US$686m. Total group capex is estimated at
US$1.12b over FY10-12E and management expects peak debt-equity at 1.2:1 (vs
0.83:1 as of June 2009). Net debt would go up by US$150m by end-FY12.
Company has sold 14 ships in the last 18 months, while it has not acquired any new
ships in the last one year.
Acquisition of ships to depend on market dynamics; time charter only at 40%
Management will decide on any acquisition decision only once strong signals emerge
on global arena. Based on the current environment, the expectation is that the
vessels price could see ~10-15% decline from the current levels.
Currently, the company is operating time charters of ~40%, while it can go upto
60% (based on market dynamics). The key reason for lower time charter was due
to credit risk of the counter party.
~50% coverage on forex through forward contract
The company covers its net forex exposure (receipt less expenses) at 50% based
on simple forward contracts.
Also, the company has cash balance of Rs25b, which it rolls to US$ to further
enhance the hedge against the currency movement.
NAV of Rs317/share, based on shipbroker's estimate
NAV of GESCO's owned vessels stands at Rs317/share as of June 2009, based on
the estimates provided by shipbrokers.
Management informed that though the liquidity in vessels market has dried up, the
NAV estimates factor that in and the contract to sell ships would get honored at the
current prices.
The stock trades at 0.9x current NAV. We have no rating on the stock.
Covering Analyst(s):
Shrinath Mithanthaya
+91 22 3982 5421
ShrinathM@MotilalOswal.com
August 3 - 5, 2009
19

5th Annual Global Investor Conference
Glenmark Pharmaceuticals
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
GNP IN
248.7
270
1.4
695 / 119
4 / 48 / -65
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/08A 19,757
03/09A 20,930
03/10E 25,153
03/11E
29,389
3,154
1,143
2,968
3,607
12.0
4.3
11.3
13.7
166.1
-63.8
159.6
21.5
22.6
62.2
24.0
19.7
4.4
3.9
3.4
2.8
20.8
6.7
15.0
14.9
15.8
8.2
14.6
14.5
3.8
3.7
3.2
2.7
9.4
23.2
13.4
11.7
Company Represented By:
Mr Aditya Renjen, GM - IR
Key Takeaways
Delayed ramp-up in Latam & US, higher R&D & interest costs to temper down
FY10E earnings growth
Latam growth yet to recover:
Management indicated that its growth in Latam
is likely to recover from 2HFY10 onwards and expects 20-25% growth for FY10E.
We expect 17% CAGR for the branded business in Latam over the next two years.
Slower pace of approvals impact US growth:
The pace of approvals in the US
has slowed down in the past few quarters given the stringent stance adopted by the
US FDA, thus impacting growth for Glenmark's US business. Management has guided
for revenues of US$160m from US for FY10E. We expect 10% CAGR for this business
over the next two years.
Increasing R&D and interest costs:
Glenmark has guided for R&D expenses of
US$40-50m for FY10E (up 250% YoY) due to more NCEs progressing further in
clinical trials and delays in closing out-licensing deals for some of these NCEs. Interest
costs are rising as debt has almost doubled in the last six months.
Emerging market growth to recover:
Management indicated that growth in
most of the emerging markets is recovering as customers have commenced re-
stocking after last few quarters of de-stocking. Emerging market currencies
appreciating against the US$ has also helped growth recovery. We expect 25-30%
revenue CAGR in these markets for next two years.
Fund raising for debt reduction:
Glenmark has recently taken board approval
for raising about US$250m through a preferential issue/QIP/private placement of
shares. We believe that higher debt burden has prompted the company to evaluate
raising equity capital to repay part of the debt. The company is targeting reducing
debt by almost 50% to Rs10b.
Awaiting further data on Oglemilast:
Management has indicated that it is awaiting
further data on Oglemilast in the near future from its partner Forest Labs. Positive
data can lead to further milestone payments for Glenmark.
Valuation and view
We believe that Glenmark's FY10E performance will be adversely impacted due to: 1)
Inability to strike NCE out-licensing deals at acceptable valuations, leading to higher
R&D spend, 2) Delays in receiving US FDA approvals for its US business, 3) Delayed
ramp-up in Latam and 4) Higher interest costs. Glenmark has differentiated itself by
emerging as the most successful NCE research company by out-licensing 3 molecules
and receiving US$117m in up-front and milestone payments till date. Given this success,
Glenmark has been aggressive in adding new NCEs to its pipeline, which will put pressure
on its operations in the short term as the company will have to fund the R&D expenses
for these NCEs on its own. The stock trades at 24x FY10E and 19.7x FY11E EPS.
Neutral.
Covering Analyst(s):
Nimish Desai
+91 22 3982 5406
NimishDesai@MotilalOswal.com
August 3 - 5, 2009
20

5th Annual Global Investor Conference
GMR Infrastructure
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
GMRI IN
1820.7
140
5.4
184 / 46
-8 / 26 / 27
YEAR
END
NET SALES*
(RS M)
PAT*
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/07A
3/08A
3/09E
3/10E
16,967
22,948
40,192
41,303
1,744
2,101
2,795
4,017
1.1
1.2
1.5
2.2
-
9.5
32.1
43.7
133.2
121.6
92.0
64.1
11.7
4.2
4.0
3.8
8.8
3.4
4.4
6.0
6.9
3.2
4.0
6.9
15.0
13.1
7.9
8.7
46.7
50.3
29.9
17.4
Company Represented By:
Mr GBS Raju, Director
Mr Subba Rao Amarthaluru,
CFO - Corp. Group Integration
Mr Ashutosh Aggarwala,
CFO - Corp. Strategic Finance
Mr Gaurang Vasani,
Associate General Manager
Strategic Finance
Key Takeaways
Power portfolio progress on track; strategy to keep ~40% under merchant
basis
In the power sector, GMR is looking at opportunities to buy-out projects which are
stalled for funds. Recently, GMR Energy acquired 100% stake in EMCO Energy, which
is developing 600 MW coal based power plant in Maharashtra. Construction on
project is expected to begin in 3QFY10.
GMR plans to keep ~60% of its power portfolio under long-term Power Purchase
Agreement (PPA), and the balance 40% on merchant basis.
PPA has been signed for Kamalanga project (~30% of capacity) in Orissa and return
for the same is based on new tariff norms i.e. 16% RoE, plus incentives. 350MW
has been sold out under Case 1 bidding to Haryana SEB, and balance will be kept on
merchant basis.
Roads projects portfolio
GMR has commissioned Tindivanam-Ulundurpet highway project in July 2009 and
with this all its 6 roads projects are operational.
Recently, it has emerged as preferred bidder for Hyderabad-Vijayawada road project
(cost of Rs22b, 32% revenue sharing) and Chennai Outer Ring Road (cost of Rs11b,
grant of Rs3b). The Hyderabad-Vijayawada project is toll-based, while the Chennai
project is annuity-based (Rs621m semi-annually).
Real estate monetization at both airports to gain momentum
Seven plots (22.5 acres) of land at Delhi airport have already been monetized,
while it is in final negotiation for the eight plot of 7.7 acres. Total upfront deposit is
expected at Rs13-15b. Lease rental for first full year of operations for 30 acres is
expected to be ~Rs450-460m, to be escalated at 6.5% pa.
At Hyderabad airport, an aviation SEZ is planned on 250 acres (MRO business +
Aviation academy), while plans are on for additional 250 acres SEZ.
Of the balance 1,000 acres at Hyderabad airport, 25 acres is being planned as
health corridor (hospital, research facilities, etc) in discussion with several parties.
For the balance land, development plan is being worked out.
Valuation and view
We expect GMR's consolidated FY10 PAT at Rs1.5b and FY11 Rs2b. Based on SOTP
valuation methodology, we arrive at a target price of Rs105/share. We are
Neutral
on
the stock.
Covering Analyst(s):
Satyam Agarwal
+91 22 3982 5410
AgarwalS@MotilalOswal.com
Nalin Bhatt
+91 22 3982 5429
NalinBhatt@MotilalOswal.com
August 3 - 5, 2009
21

5th Annual Global Investor Conference
Godrej Consumer Products
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
GCPL IN
258.1
223
1.2
250 / 90
23 / -6 / 78
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/08A 11,040
03/09A 13,930
03/10E 16,344
03/11E
18,748
1,592
1,726
2,414
2,820
7.1
6.7
9.4
10.9
18.6
-5.2
40.0
16.8
31.6
33.3
23.8
20.4
33.5
9.7
8.5
7.4
92.8
29.0
35.6
36.2
64.4
27.8
36.2
37.6
4.7
4.0
3.4
2.9
24.0
27.2
18.1
15.2
Company Represented By:
Mr H K Press, Vice Chairman
Key Takeaways
Value-for-money positioning boosts soap volumes
Godrej Consumer's value-for-money positioning has helped it to post volume growth
of 18% YoY in FY09 and 15% in 1QFY10. Good product quality (76% TFM), increased
distribution and initiatives like low-priced packs (Rs5 SKU) have been key growth
drivers. The company is focusing on Godrej No1, which accounts for 60% of volumes.
Palm-oil prices (22% of sales) are 40% down YoY, which will boost company margins
in FY10. GCPL entered into a long-term forward contract and booked its requirements
until January-February 2010. This will ensure margin-expansion through FY10.
Hair-color sales revive, reflect in market-share gains
Initiatives such as the re-launch of Godrej powder hair dye as Godrej Expert, launch
of Renew powder hair dye and a 5% increase in trade margins have helped GCPL
revive hair-color sales and enhance market share.
The management believes there is potential to upgrade consumers from unbranded
mehendi to branded mehendi, especially as GCPL expands in rural India.
Management indicated that it is focusing on the hair-color market and is open to
acquisitions in this segment
International business
Higher sales of Cuticura hand wash (anti-bacterial), as the swine flu scare increased
in Britain, drove Keyline's performance. With integration issues with Kinky sorted
out, performance is expected to improve. GCPL plans to invest in enhancing
distribution in South Africa, which has big potential for hair-care products.
The international market accounts for 25% of GCPL's revenue and this is indicated
to rise to 50% in the next three years through acquisitions in the hair-color category.
Godrej Sara Lee
GCPL will continue to hold 49% in the Godrej Sara Lee JV after the current scheme of
arrangement. Acquisition of the remaining stake will be triggered after Sara Lee Global
(US$2b turnover) plans to sell its global business. The valuation will be based on a pre-
arranged price finalized at the time of entering into the JV. GCPL will get rights to Sara
Lee products only for the Indian markets.
Valuation and view
We estimate 27.8% EPS CAGR for FY09-11. We estimate FY10 and FY11 EPS at Rs9.4
and Rs10.9, excluding the acquisition of 49% stake in Godrej Sara Lee. The stock trades
at 23.8x FY10E and 20.4xFY11E EPS. We believe that acquisition of the remaining 51%
in Godrej Sara Lee can re-rate the stock. Maintain
Buy.
Covering Analyst(s):
Amnish Aggarwal
+91 22 3982 5404
AmnishAggarwal@MotilalOswal.com
Amit Purohit
+91 22 3982 5418
AmitPurohit@MotilalOswal.com
August 3 - 5, 2009
22

5th Annual Global Investor Conference
Grasim Industries
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
GRASIM IN
91.7
2,829
5.5
2940 / 824
10 / 38 / 34
YEAR
END*
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/08A 169,739
03/09A 184,039
03/10E 202,243
03/11E
210,694
26,951
21,867
28,846
26,475
293.9
238.5
314.6
288.7
37.0
-18.9
31.9
-8.2
9.6
11.9
9.0
9.8
2.8
2.2
1.8
1.6
34.3
21.1
22.2
15.8
31.1
20.7
24.8
24.1
2.0
1.8
1.4
1.2
6.7
7.6
4.7
4.5
* Consolidated
Company Represented By:
Mr Adesh Gupta, CFO
Key Takeaways
Cautious outlook for core business
Expects the cement industry to grow at 9% in FY10 (v/s 12.2% in 1QFY10). This
along with expected excess capacities from 2HFY10 will put pressure on prices.
The management expects realization (+Rs5/bag QoQ in 2QFY10) and margins to
improve from 1QFY10 levels. But it is uncertain that it will sustain beyond 2QFY10
especially because of the widening price differential between competing fibers,
increased excise duty by 4-8% and the start of a downward trend in China.
Capex nearly complete
Capex plan to add 14MT capacity would be completed by 3QFY10, taking total capacity
to 49MT. Most of its capacity enhancement program has been completed and a 3MT
grinding unit at its Kotputli plant is expected to be commissioned in 3QFY10.
Grasim will invest Rs43.3b over FY10-11 to augment its logistics infrastructure,
waste heat recovery system, CPP, evacuation facility and on modernization.
As a result, Grasim is seen to substantially increase its free cash flow from FY10
(estimated at Rs45.7b in FY10 v/s Rs9.8b in FY09).
Cost savings to result in stable margins in FY10
Stabilization of production at its recently expanded capacities will drive the group's
volume growth. It expects to gain market share as its volumes will grow faster than
that of the industry.
Softening of imported coal/pet coke prices (50% dependence) will benefit Grasim.
Its commissioning of new CPPs 263MW (incl 40MW waste-heat recovery system)
will increase its reliance on CPP to 80%.
Grasim will also cut logistic costs. It will reduce the lead distance to its plants when
it opens new units and will enhance its logistics infrastructure by expanding the
jetty at its Gujarat plant and setting up bulk terminals.
Other takeaways
Strong growth in rural/semi-urban markets has led to an increase in its share to
30% from 12% earlier.
No pick-up yet from organized real-estate sector.
South India most prone to pricing power based on overcapacity.
Valuation and view
The outlook for Grasim's core business has improved with higher volumes in VSF and
higher pricing in the cement business. Grasim is best placed among its peers, as there
is high visibility for volume growth and cost-savings triggers The stock is quoting at 9x
FY10E consolidated EPS and 4.7x EV/EBTIDA. Maintain
Buy.
Covering Analyst(s):
Jinesh Gandhi
+91 22 3982 5416
Jinesh@MotilalOswal.com
August 3 - 5, 2009
23

5th Annual Global Investor Conference
GVK Power & Infrastructure
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
GVKP IN
1,579
44
1.6
51 / 10
-5 / 58 / 3
YEAR
END
NET SALES*
(RS M)
PAT*
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A
3/09A
3/10E
3/11E
4,700
5,138
23,726
25,014
1,361
1,076
2,543
3,192
1.0
0.8
1.6
2.0
-34.6
-20.9
110.5
7.4
45.3
57.2
27.2
21.7
2.8
2.7
2.1
2.0
6.2
4.7
7.9
9.2
4.6
2.1
6.8
6.3
3.7
6.7
2.1
2.4
9.3
19.5
6.3
7.3
*Consolidated
Company Represented By:
Ms Mala Paropkari,
Vice President - IR
Mr Viren Vijaya Shankar,
Senior Manager - IR
Key Takeaways
Roads and power are focus areas
GVK Power & Infrastructure (GVKPIL) has identified roads and power sectors as
focus areas for the medium term. The company has taken a stance to participate in
bidding for new road projects but with desired level of profitability (RoE of 16%+).
In power, the company is open to inorganic growth and is evaluating acquisition of
interest in a few projects. The company has been approached by various project
developers with project sizes ranging from 600-1200MW. The company is in the
process of obtaining necessary clearances.
Additionally, the company is exploring capacity expansion at Gautami power project
by 800MW and JP Phase II by 400MW, given that land and other clearances are in
place.
Gas supply at existing projects in place, merchant sale clearance is expected
any time in 2QFY10
Gas supply at all three operating power projects, viz, JP Phase I & II and Gautami is
available for 100% capacity and plants are currently operating at a PLF of 88-99%.
Merchant sale from JP II and Gautami power project is expected to begin only from
3QFY10 (hearing on 18th August 2009), as management expects approval for sale
of merchant power by end 2QFY10.
Cash balance at ~Rs10b; no plans to divest stake in JKEL
Cash on books as at June 2009 stands at Rs10b, and GVKPIL is fairly placed to meet
equity funding over next two years towards existing projects. Estimated equity
founding requirement is Rs3-3.5b each in FY10 and FY11.
The company is not looking to divest its stake in JKEL currently and if found attractive,
it may securitize cash flows from the project.
Real estate monetization at Mumbai airport to begin from FY10
Master plan for development is now completed with plots/zones identified for various
purposes falling under commercial real estate development. GVKPIL is likely to
monetize 0.5msf by March 2010.
Slum rehabilitation by HDIL is progressing with minor delay. Total ~20,000 families
will be rehabilitated by HDIL.
Valuation and view
We expect GVKPIL to report PAT of Rs2.5b in FY10 (up 136%) and Rs3.2b in FY11
(up 26%). Maintain
Buy
with SOTP based target price of Rs54/share.
Covering Analyst(s):
Satyam Agarwal
+91 22 3982 5410
AgarwalS@MotilalOswal.com
Nalin Bhatt
+91 22 3982 5429
NalinBhatt@MotilalOswal.com
August 3 - 5, 2009
24

5th Annual Global Investor Conference
HDFC Bank
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
HDFCB IN
451.6
1,448
13.8
1584 / 774
-12 / -11 / 16
YEAR
END
NET INCOME
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
CAR
(%)
ROAE
(%)
ROAA
(%)
P/ABV
(X)
(RS) GROWTH (%)
3/08A* 88,403
3/09A 107,118
3/10E
3/11E
129,473
157,492
17,530
22,449
28,494
37,942
41.3
52.8
63.1
84.0
22.1
27.7
19.6
33.2
35.0
27.4
22.9
17.2
4.5
4.1
3.1
2.7
13.6
15.7
15.2
14.1
16.2
15.6
15.9
17.0
1.3
1.3
1.4
1.6
4.6
4.2
3.2
2.8
* Includes pro forma merged figures for HDFC Bank and CBoP
Company Represented By:
Mr Aditya Puri, MD
Mr Paresh Sukthankar, ED
Key Takeaways
Business environment favorable for HDFC Bank
Mr Puri remains optimistic about India's growth prospects. He believes that the
worst is behind for the economy and the banking industry.
In India, demand for banking services remains higher than supply, and this will
continue to provide significant opportunities for banks.
The overall business environment remains favorable for HDFC Bank.
Focus on retail assets and liabilities
Post merger with CBoP, HDFC Bank is in much better shape to grow its retail liabilities.
Customer segmentation, product diversification, effective utilization of technology,
and immaculate execution would continue to remain the key success factors for the
bank.
The bank will stick to its strategy of growing its middle and upper middle income
customer segments.
HDFC Bank will maintain above industry growth rates
Industry loan growth is likely to be 18-20% in FY10 and HDFC Bank would maintain
higher than industry growth.
Retail loans and working capital demand would continue to drive loan growth for
HDFC Bank. However, corporate loan growth is likely to be higher than the growth in
retail loans considering the rundowns in the acquired CBoP loan book.
Worst is behind on NPA front; equity dilution unlikely in next 3 years
Mr Puri believes that NPAs for HDFC Bank are near peak and upside from the current
levels is very limited.
HDFC Bank would not need equity capital for the next three years to manage its
growth.
The bank is not considering international expansion, as the domestic economy offers
immense opportunities.
Valuation and view
We expect HDFC Bank to report EPS of Rs63 in FY10 and Rs84 in FY11.
BV would be Rs462 in FY10 and Rs528 in FY11.
Stock trades at 3.1x FY11E BV and 17.2x FY11E EPS. Maintain Neutral as valuations
are fair.
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009
25

5th Annual Global Investor Conference
HDFC Standard Life
Company Represented By:
Mr Paresh Parasnis,
Principal officer and ED
Ms Vibha Padalkar, CFO
Key Takeaways
The management's focus remains on profitable growth; market share is currently
low priority. However, accounting break-even is expected to be a couple of years
away from now. (HDFC Standard Life reported a loss of Rs5b in FY09.)
FY09 was the worst year for the company as business environment deteriorated
significantly, soon after rapid expansion in branches/manpower, and massive ad
spends. This, coupled with deterioration in persistency ratio (dropped from 86% in
FY08 to 65% in FY09), led to doubling of losses despite maintaining new business
premium.
The management's present focus is to optimize cost structure and improve efficiency
rather than go in for geographical expansion. It believes over the long term, sales
and service would be the key differentiator among insurance companies.
In management's view, the recently announced cap on charges for ULIP products
would certainly have impact on overall business profitability for all the players but
quantifying the same is difficult at this point of time. However, structurally, this
move is a positive for customers and would lead to rationalization of distribution
commissions and other operating costs of life insurance companies.
The management believes that life insurance business in India can sustain 10-15%
growth, and that HDFC Standard Life would strive to grow in line with industry going
forward.
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009
26

5th Annual Global Investor Conference
Hero Honda Motors
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
HH IN
199.7
1,604
6.7
1780 / 661
5 / 8 / 87
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A 103,318
3/09A 123,191
3/10E
3/11E
149,946
166,289
9,679
12,818
19,968
21,998
48.5
64.2
100.0
110.2
12.8
32.4
55.8
10.2
29.4
25.0
16.0
14.6
9.5
8.4
6.1
4.7
35.5
37.8
44.3
36.7
45.7
47.9
53.7
44.8
2.5
2.3
1.8
1.5
19.2
16.5
10.9
9.4
Company Represented By:
Mr Ravi Sud, SVP & CFO
Key Takeaways
Conservative guidance
The company's conservative guidance of 4m units in FY10 is based on:
Uncertainty of the monsoon, the impact of which will be seen from 3QFY10
Withdrawal of excise duty reduction can have short-term impact
More competition
However the management will review its guidance at the end of 1HFY10 and expects
the following factors to positively impact volumes:
Any improvement in finance
Higher government spending in rural areas
Lower channel inventory of 180,000 units against normal levels of 250,000-
275,000 units
EBITDA margins should improve 2QFY10
EBITDA margins at 16.8% in 1QFY10 will improve in 2QFY10 because:
Volumes in 2QFY10 will be higher than 1.1m units in 1QFY10
Advertising spends at Rs500m in 1QFY10 will be lower in 2QFY10 as there are
no special events, such as the IPL and the 20-20 World Cup, in the quarter.
The management doesn't expect commodity prices to rise substantially in the short
term. It sources its monthly raw material requirement on a spot basis.
Haridwar plans
The company plans to add a fourth line at Haridwar, enhancing output to meet
demand.
The company produces 4,000 units a day (about 350,000 units per quarter).
Hero Honda makes Splendor at Haridwar and will produce Passion there as well.
Vendor localization at Haridwar will increase from 30% to 65% by 3QFY10.
Other takeaways
Strong demand for some of its brands, such as Passion, is leading to a shortage.
Plans to launch nine products (including a new model) from September will drive
growth.
Hero Honda plans 22 Just For Her scooter showrooms catering exclusively to women.
Hero Honda and HMSI have a non-competing product portfolio.
Valuation and view
Recovery in domestic and export volumes coupled with higher hedged forex rates will
help profitability. Continued volume improvement and recovery in market share will be
a catalyst for the stock. The stock trades at 16x FY10E EPS and 14.6x FY11E EPS.
Maintain
Buy.
Covering Analyst(s):
Jinesh Gandhi
+91 22 3982 5416
Jinesh@MotilalOswal.com
August 3 - 5, 2009
27

5th Annual Global Investor Conference
HPCL
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
HPCL IN
339.0
364
2.6
398 / 163
1 / -50 / 49
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/08A
03/09A
03/10E
03/11E
1,047,038
1,246,943
7,263
4,355
21.4
12.8
38.6
30.3
-49.6
-40.0
200.5
-21.4
17.0
28.3
9.4
12.0
1.2
1.1
1.0
1.0
7.2
4.1
11.4
8.2
7.6
8.8
9.9
8.8
0.2
0.2
0.2
0.2
15.0
7.6
4.7
5.6
1,026,284 13,084
1,111,609 10,279
Company Represented By:
Mr B Mukherjee,
Director (Finance)
Mr K Murali,
Director (Refineries)
Mr A V Dixit,
Sr Manager (Budget & MIS)
Key Takeaways
Sees no subsidy burden in FY10:
HPCL said that according to the government there
was unlikely to be a subsidy burden on OMCs (oil market companies) in FY10. In 1QFY10
the auto fuel subsidy burden was shared by upstream companies (ONGC, OIL and GAIL).
Though the government did not share the burden in 1QFY10, HPCL expects it do so
subsequently.
Covering Analyst(s):
Harshad Borawake
+91 22 3982 5432
HarshadBorawake@MotilalOswal.com
Green fuels projects at Mumbai, Visakh commissioned:
HPCL has completed the
Euro III/IV MS upgrade at Mumbai refinery and will complete its Visakh refinery upgrade
in August 2009. The diesel upgrade will be completed with the installation of a diesel
hydro-treater in September 2011.
Key projects on track, capex may be lower than estimated:
HPCL is implementing
four projects: 1) the Rs10b LOBS upgrade at Mumbai (by May 2010); 2) the Rs9b new
FCCU at Mumbai (by 1QFY10); 3) the Rs69b diesel hydro-treaters at Mumbai and Visakh
(by Sept 2011) and 4) Rs6.5b Single Point Mooring (SPM) facility at Visakh (by March
2010). Capex for diesel hydro-treaters and SPM are expected to be lower than estimates
by 25-30%.
Bhatinda Refinery mechanical completion target December 2010:
HPCL's
9mmtpa, Rs189b, JV refinery with Mittal Energy Investments in Bhatinda, Punjab has
achieved 35% physical progress and critical long-lead item orders have been placed.
Mechanical completion is targeted in December 2010.
Strong domestic demand growth seen to continue:
The management expects
strong domestic product demand growth to continue at 1% below India's GDP growth
rate.
HPCL has a portfolio of 26 E&P blocks:
HPCL has equity investment in 26 E&P
blocks, including 14 deepwater, five shallow water and seven on-land blocks. HPCL
plans to invest Rs10b over the next five years in its E&P business but the management
said it would invest more if needed. Though HPCL has a cautious approach to its E&P
portfolio (average stake of 15-20%), its long-term goal is to source 50% of its oil
requirement from its own blocks.
Valuation and view:
We assume oil price of US$60/bbl in FY10 and US$65/bbl in
FY11. We build OMCs' share in under-recoveries at 20%. We estimate HPCL's EPS at
Rs39 in FY10 and Rs30 in FY11. At a CMP of Rs364/share BPCL quotes at a PER of 9.4x
FY10E and P/BV of 1x FY10E. Maintain
Buy.
August 3 - 5, 2009
28

5th Annual Global Investor Conference
ICICI Bank
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
ICICIBC IN
1112.7
773
18.1
808 / 252
1 / 23 / 5
YEAR
END
NET INCOME
(RS M)
PAT
(RS M)
EPS
EPS
AP/E*
(X)
AP/ABV*
(X)
CAR
(%)
ROAE
(%)
ROAA
(%)
P/ABV
(X)
(RS) GROWTH (%)
3/08A
3/09A
3/10E
3/11E
161,149
159,704
162,665
178,023
41,577
37,582
38,933
50,240
37.4
33.8
35.0
45.1
8.0
-9.7
3.6
29.0
17.3
19.2
16.7
12.5
2.0
2.1
1.8
1.6
14.0
16.0
15.7
15.7
14.3
10.0
10.2
12.4
1.1
1.0
1.0
1.2
1.9
1.8
1.8
1.6
* Price adjusted for value of key ventures and BV adjusted for investments in those key ventures
Company Represented By:
Ms Chanda Kochhar, MD & CEO,
Mr Rakesh Jha, Deputy CFO,
Mr Rupesh Kumar, Chief Manager
Key Takeaways
Will continue to execute “4C” strategy
ICICI Bank’s focus would continue to be
CASA, Capital
conservation,
Cost
efficiency and
improving
Credit
profile for profitable growth. The key enablers are:
Expanding branch network (2,000 by FY10) and making branches focus points for
customer acquisition and relationships
Changing collection mechanism by in housing collections of few products and
preventive collection focus
Human resources transformation through retraining and redeployment of staff for
new branch oriented responsibilities
Targets to double RoE over next 3 years
With improving margins, pick-up in fees and continued efficiency, ICICI Bank is
targeting to double its RoE to high teens over the next three years. FY10 RoE
expansion would be driven by consolidation strategy and cost cutting, while the next
two years’ RoE expansion would be driven by loan growth and lower credit cost.
The bank maintains its CASA ratio target of 33% by FY10. It maintains its strategy
of preserving capital for the next growth phase. “Loan growth” remains the last
priority for FY10.
Housing loans, project finance and commercial banking would be the growth avenues
in the mid-term. Risk aversion towards unsecured retail loans remains intact.
Margin expansion possible from 2HFY10
Downward re-pricing of bulk deposits, loan growth and further improvement in CASA
ratio gives the management comfort about margin expansion possibilities.
NPAs look to be peaking out
ICICI Bank expects NPAs to peak out in the next quarter. Credit costs would decline, as
unsecured retail loans run off significantly in the next two quarters. While the restructuring
number would increase in 2QFY10, strong corporate health and improving domestic
demand will keep ultimate credit losses manageable.
Valuations and view
We expect ICICI Bank to report EPS of Rs35 in FY10 and Rs45 in FY11.
BV would be Rs466 in FY10 and Rs497 in FY11. We expect RoA to expand to 1.2%
and Core RoE to cross 12% by FY11.
Stock trades at AP/ABV (price adjusted for value of subs and BV adjusted for
investment is subs and NPAs) of 1.8x FY10E and 1.6x FY11.
Valuations are fair now.
Buy
on declines with FY11 SOTP target price of Rs777.
29
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009

5th Annual Global Investor Conference
Idea Cellular
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
IDEA IN
3100.1
78
5.1
93 / 34
-1 / 2 / -19
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A
67,374
10,424
9,008
10,933
11,743
4.0
3.0
3.5
3.6
84.4
-23.7
16.9
0.9
19.7
25.9
22.1
21.9
5.8
1.7
1.6
1.3
36.4
10.4
7.6
6.9
14.7
7.4
6.1
6.2
3.9
2.8
2.4
2.1
11.5
9.9
8.2
7.4
3/09A 101,485
3/10E
3/11E
127,429
163,865
Company Represented By:
Mr Akshaya Moondra, CFO
Key Takeaways
Subscriber additions losing relevance due to dual SIMs
Idea management believes that monthly subscriber additions are losing relevance
due to SIM duplication and diverse churn policies of operators, especially for unlimited
validity plans.
Idea's churn rate has increased by 270bp YoY to 6.7% (tight churn criteria), thus
affecting its net adds market share.
Over next few quarters, as new rollouts ease, subscribers are likely to move back to
normalized state of using primarily one SIM.
Traffic growth likely to remain strong
Idea's wireless traffic has grown at 10-11% QoQ in each of the preceding four
quarters driven by a 74% YoY increase in cell site base.
Growth outlook remains strong led by new subscriber additions and circle launches.
Potential tariff declines unlikely to sustain
Idea believes that while potential tariff declines, though possible due to competitive
pressure from new rollouts, are unlikely to sustain.
Idea does not plan to retaliate in the event of irrational pricing by new entrants
unless there is significant impact on traffic/subscriber share.
Given low RoIC of most operators, there could be room for increase in pricing once
consolidation happens (likely in 1-3 years) and competitive pressure erodes.
3G auction participation will depend on base price/bidding
Idea is waiting for more clarity on number of spectrum slots available for 3G auctions
and base price.
3G investments would be driven more by requirement of future proofing technology
shifts rather than current market potential.
Pricing of spectrum would ultimately drive the extent to which Idea participates in
the 3G opportunity.
Peak capex in established circles is over
FY09 was the peak capex in established circles. Going forward, higher network
utilization driven by lower coverage capex would drive efficiencies and cushion
margins in these circles.
FY10 would mark peak capex in circles launched during FY09 and FY10. We estimate
capex (ex-3G) to decline by ~30% in FY11.
Valuation and view
Idea trades at FY11E P/E of 22.1x and EV/EBITDA of 7.4x.
Maintain
Neutral
on fair valuations and lower visibility on new circle losses/NPV.
Covering Analyst(s):
Shobhit Khare
+91 22 3982 5428
Shobhit.Khare@MotilalOswal.com
August 3 - 5, 2009
30

5th Annual Global Investor Conference
Info Edge
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
INFOE IN
27.3
630
0.4
950 / 376
-11 / -22 / -33
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
(RS)
EPS
GR. (%)
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
SALES EBITDA
3/06A
3/07A
3/08A
3/09A
915
1,575
2,189
2,458
133
271
555
582
6.0
9.8
20.2
21.2
0.0
63.7
106.1
5.1
0.0
0.0
0.0
29.0
0.0
0.0
0.0
5.2
53.7
22.8
23.1
19.8
78.9
27.4
24.7
20.1
0.0
0.0
0.0
5.4
0.0
0.0
0.0
20.2
Company Represented By:
Mr Sanjeev Bikhchandani,
MD & CEO
Mr Ambarish Raghuvanshi, CFO
Key Takeaways
Growth expected after 2QFY10, flat revenue, profit seen in FY10
Infoedge's management expects 2QFY10 to be sluggish and expects growth to resume
from the third quarter
Revenue and profit are anticipated to be flat in FY10
While recruitment activity continues to be slow, the company expects to tackle the
slowdown with continued product innovation and improved sales-force efficiency
Job listings by recruiters, as indicated by Naukri Jobspeak index, improved in June
09 after a dip in May 09
Recruitment sluggish, traffic share rises
The number of resumes added daily dropped 29% YoY in 1QFY10 even as the total
number of resumes increased 26% YoY.
The company sees recruitment rising in Infrastructure while recruitment in IT is
muted. IT accounts for 25% of revenue, followed by Infrastructure, at 20%.
Traffic data as provided by Comscore shows a pick-up in share of Naukri.com in May
09 while traffic share of Monsterindia and Timesjobs has fallen.
Cost controls in place, increments to be lowered
Infoedge curtailed margin declines, despite revenue sluggishness, with cost controls
The company cut advertising spends with almost non-existent TV advertising in
FY09. Advertising costs accounts for 15-20% of revenue.
Employee costs (35-40% of revenue), have been controlled with low increments
and less variable pay. About 20% of salaries are variable in nature.
Non-recruitment sites picking up, Jeevansathi.com to break even in 3QFY10
The company is seeing initial signs of revival in its property web site, 99scres.com,
with buying interest rising after a freeze in 2HFY09
Jeevansathi.com, Infoedge's matrimonial website, is expected to break even in
3QFY10.
The website is focussing on the Hindi-speaking belt and Maharashtra because there
is less competition in these places. The company has consistently ranked number
one or two in these geographies.
Valuation and view
Infoedge is expected to gain as recruitments pick up due to economic recovery. There
has been increased interest in its property site 99acres.com after a slump in 2HFY09. At
the CMP, Infoedge trades at 29x FY09 earnings.
Covering Analyst(s):
Ashwin Mehta
+91 22 3982 5409
Ashwin.Mehta@MotilalOswal.com
Vihang Naik
+91 22 3982 5436
Vihang.Naik@MotilalOswal.com
August 3 - 5, 2009
31

5th Annual Global Investor Conference
Infosys Technologies
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
INFO IN
573.7
2,095
25.3
2107 / 1040
6 / -9 / 19
YEAR
END
NET SALES
(RS M)
PAT*
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A 166,920
3/09A 216,930
3/10E
3/11E
217,093
234,477
45,380
58,800
56,922
58,028
79.2
102.5
99.2
101.2
19.8
29.5
-3.2
1.9
26.0
20.0
20.7
20.3
8.5
6.4
5.3
4.5
36.2
36.7
28.2
24.2
37.0
40.2
31.0
27.7
6.6
5.0
4.8
4.3
21.1
15.0
14.6
13.5
Company Represented By:
Mr V Balakrishnan, CFO
Key Takeaways
Macro-economic improvements yet to translate into better demand
IT spending would happen with a lag. Clients continue to prioritize spend and
conserve cash. Spend velocity remains slow.
The company expects budgets to improve in CY10 if there is no further bad news till
December 2009.
Reversal of growth to past levels will happen when there is stability in large clients
and concurrent growth across a few of its largest clients, which was the case in
FY07 and FY08, when BT contributed to significant growth.
Verticals and service line outlook
Sees traction in BPO/IMS/Testing and continued sluggishness in Enterprise Solutions
Within verticals, Infosys sees growth in Retail, with BFSI and Telecom stabilizing
Expects the next phase of growth to be driven by BFSI and Telecom
Utilization pressure in the interim; scope for growth without headcount
addition
The company expects its utilization (excl. trainees) to go down from 70.9% levels,
on account of hiring of freshers (20,000 fresher offers for FY10).
It believes revenues can grow around 10% without increase in headcount, on account
of this buffer, which should be positive on margins.
Sees value in long-term offshoring proposition
There is scope for outsourcing in [1] existing business at clients, [2] vendor consolidation,
[3] shift of business from captives or hiving off of captives, [4] in-house IT being
outsourced, and [5] incremental spending in selective cases.
Key investment areas
The company continues to spend on:
Solutions and platforms e.g. HR, publishing
Verticals like healthcare and life sciences, also looking at inorganic options
Expansion of sales staff in countries like Japan, France and Germany
Onsite hiring of 1,000 locals to reduce risk in case the 50:50 rule on H1-B local
employment becomes a reality
Valuation and view
We are positive on Infosys' ability to manage margins in FY10, while we remain cautious
on volume growth. We expect a revival in US$ revenue growth in FY11 to 12.3%. The
stock is trading at 20.7x FY10E and 20.3x FY11E earnings. Maintain
Neutral.
Covering Analyst(s):
Ashwin Mehta
+91 22 3982 5409
Ashwin.Mehta@MotilalOswal.com
Vihang Naik
+91 22 3982 5436
Vihang.Naik@MotilalOswal.com
August 3 - 5, 2009
32

5th Annual Global Investor Conference
Jaiprakash Associates
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
JPA IN
1404.6
244
7.2
256 / 47
13 / 182 / 26
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS*
(RS)
EPS GR.*
(%)
P/E*
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
SALES EBITDA
3/08A
3/09A
3/10E
3/11E
39,670
57,703
93,447
103,260
6,097
8,562
11,662
12,180
5.2
7.2
8.3
8.7
31.8
38.6
0.0
4.4
46.9
33.8
29.4
28.2
6.2
5.2
5.0
4.4
16.3
16.8
18.7
16.7
10.6
10.7
14.8
12.3
8.8
6.8
5.0
4.6
37.8
24.5
14.1
15.0
* Fully Diluted
Company Represented By:
Mr Suren Jain,
MD Jaiprakash Power Venture
Mr R K Narang,
Director & CFO Jaiprakash Hydro
Mr Saurabh Paliwal,
Investor Relations
Key Takeaways
E&C division focus on in-house projects, sees margins maintained
JPA's E&C division focuses on in-house projects. Its projects under development
comprise power projects of Rs600b, expressway projects (Yamuna and Ganga) of
Rs350b and real-estate development (400msf) worth Rs800b.
Management expects E&C division margins to be maintained at 18-20%.
The project cost for Yamuna Expressway is Rs97b of which Rs46.2b was spent until
July 2009 (debt drawn is Rs25b).
Cement capacity of 35.5m ton by FY12, Outstanding capex of Rs30b
In 1QFY10 the cement division posted EBITDA of Rs1,482/ton and management
expects robust EBITDA in 2QFY10.
Existing cement capacity in July 2009 was 14.7m ton, and outstanding capex/
investments stands at Rs30b for a targeted capacity of 35.5m ton.
Expected capacity is 22.8m ton in FY10, 29.7m ton in FY11 and 33.55m ton in FY12
from 14.7m ton currently.
Power project portfolio
Bina power project (500MW) construction started and due for commissioning by
September 2010. Karcham Wangtoo (1,000MW) construction is ahead of schedule
and the first unit is expected to be commissioned by March 2011.
Letter of Intent for BTG package placed with L&T-Mitsubishi JV for 1,320MW Nigrie
thermal power project and expected CoD is May/June 2013.
Equipment ordering for Bara power project (1,980MW) and Karchana power project
(1,320MW) are in advanced stages.
Aman launch drives real-estate monetization
In 1QFY10 JPA received bookings for 4.82msf of real estate at Noida project, including
100% bookings on recently launched Aman project (3.59msf).
Average realization for real estate development project in Noida is Rs3,819/sf, and
the company has received advances of Rs12.6b till June 2009.
In FY10 the company plans to sell 10-12msf of land.
Valuation and view
We expect JPA to report net profit of Rs11.8b in FY10 (up 38% YoY) and Rs11.5b in
FY11 (down 2% YoY). JPA quotes at a PER of 28.2x FY11E.
Buy.
Covering Analyst(s):
Satyam Agarwal
+91 22 3982 5410
AgarwalS@MotilalOswal.com
Shridatta Bhandwaldar
+91 22 3982 5417
Shridatta.Bhandwaldar@MotilalOswal.com
August 3 - 5, 2009
33

5th Annual Global Investor Conference
Jet Airways
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
JETIN IN
86.3
256
0.5
567 / 115
-4 / -17 / -54
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/06A
3/07A
3/08A
3/09A
56,458
70,578
102,456
4,520
279
-5,844
52.4
3.2
15.3
-93.8
-47.0
4.9
79.0
-3.4
-2.3
1.0
1.0
0.5
0.6
20.9
0.0
21.0
0.6
8.2
-0.6
-7.5
-9.4
0.9
1.0
1.3
1.3
5.4
19.8
-82.6
-20.2
-75.7 -2,440.3
130,779 -21,265 -111.4
Company Represented By:
Mr K G Vishwanath, Vice
President - Commercial Strategy
& Investor Relations
Mr Raghunath G, Manager - MIS
& Investor Relations
Key Takeaways
Focus on emerging as a global network carrier
Jet Airways (JAL) believes that globally two business models proved to be successful
in the airline industry: network and low-cost carriers. JAL is focused on establishing
itself as a global network carrier with a firm footing in the fast growing Indian
market.
Continuous innovation, relentless cost cuts the only solution
JAL is focusing on cost cutting especially in its domestic operations and consequently
launched a low-cost service, Jet Konnect. It operates 12 aircraft and might increase
that number to 24 by the end of FY10.
The management has outlined a $600m cost reduction program, including
rationalization of its network and reducing staff costs, administrative and S&GA
expenses.
The management has taken steps to cut costs in Jet Lite such as renewing its
ageing fleet and rationalizing manpower costs. The company is likely to renew
leases of its old aircraft with new ones, which will reduce the age of its fleet from
eight years to four in FY11.
International operations to stabilize soon
JAL's international operations have stabilized after it cut capacity. Nine out of 22
wide-body aircraft have been leased out.
Other takeaways
JAL has net debt of Rs145b, of which Rs85b is for aircraft at attractive interest rates
of less than 4%. JAL is looking to raise $800m through the PE and QIP route.
Valuation and view
We believe JAL is a good proxy for the Indian aviation industry with 31% market share.
JAL's international operations are likely to fare better than domestic operations due to
less competition and lower fuel prices. The domestic operations will continue to face
significant pressure on profitability due to slowing passenger demand, the depreciation
of the rupee against the US dollar and stiff competition.
Not rated.
Covering Analyst(s):
Siddharth Bothra
+91 22 3982 5407
SBothra@MotilalOswal.com
August 3 - 5, 2009
34

5th Annual Global Investor Conference
Jindal Steel & Power
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
JSP IN
154.0
2,884
9.3
3238 / 517
2 / 106 / 26
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A
3/09A
3/10E
54,890
108,443
113,248
13,634
30,572
36,461
38,747
88.6
198.6
236.8
251.7
97.0
124.2
19.3
6.3
32.6
14.5
12.2
11.5
11.5
6.6
4.3
3.2
35.4
45.1
35.3
27.5
16.6
27.9
21.9
16.7
9.3
4.6
4.8
4.6
21.5
9.6
9.2
9.0
3/11E
126,419
Consolidated
Company Represented By:
Mr Sushil Maroo, Director
Key Takeaways
Rich mineral resources
JSPL has rich mineral resources of coal and iron ore. Coal reserves of 2.5b tons
have been allotted to the company in Orissa, Chhattisgarh, Madhya Pradesh and
Jharkhand.
Iron ore mines are in Orissa, Jharkhand and Bolivia.
PAT grows 54% CAGR in 2000-09, strong pipeline of growth drivers
Revenue and PAT rose 43% and 54%, respectively, CAGR from 2000 to 2009. A strong
pipeline of power and steel projects will drive earnings growth subsequently. The
company's 2020 vision envisages the following:
Steel capacities will rise from 3mt a year to 20mt a year.
Power (including captive) capacity will rise from 1,340MW to 15,000MW.
Oil production from coal-to-liquid project will rise to 80,000bpd.
Jindal Power
A 1,000MW power plant is operating at full capacity. Cost of power generation is
low due to proximity of captive coal mines. A 400KVA transmission line connects the
site to the national grid. The project is highly profitable because of low cost of
generation and is able to sell most of the power through short-term contracts,
under the open access policy, directly to the end user, earning lucrative rates.
Jindal Power has ordered equipment for the 2,400MW brown-field expansion, which
is likely to be commissioned by 2012-13.
The 4,500MW hydropower project is likely to be executed during 2014-20.
Other takeaways
JSPL has entered the oil and gas sector by acquiring five oil blocks in Georgia and
one in Rajasthan (NELP VII), which have been grouped under Jindal Petroleum.
Except for one operational block in Georgia, all the others are under exploration. Oil
and gas are likely to start contributing to the bottomline in the next five to 10 years.
Iron-ore mining in Bolivia is likely to start in FY10.
Valuation and view
We expect Jindal Steel & Power to report net profit of Rs36.5b in FY10 and Rs38.8b in
FY11. At a CMP of Rs2,722, the stock trades at a PE of 11.5xFY10E and P/BV of 4.1xFY10E
(RoE of 35.3%). Maintain
Buy.
Covering Analyst(s):
Sanjay Jain
+91 22 3982 5412
SanjayJain@MotilalOswal.com
August 3 - 5, 2009
35

5th Annual Global Investor Conference
Larsen & Toubro
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
LT IN
584.7
1,515
18.6
1800 / 556
-10 / 63 / 6
YEAR
END
NET SALES
(RS M)
PAT *
(RS M)
EPS*
(RS)
EPS GR.
(%)
P/E*
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
SALES EBITDA
3/08A
3/09A
3/10E
3/11E
249,387
339,264
392,167
449,665
22,910
30,046
34,310
38,131
39.3
51.5
58.8
65.3
25.1
31.1
14.2
11.1
37.9
28.9
25.3
22.7
9.1
7.0
5.7
4.9
27.0
24.5
20.4
18.7
29.5
26.0
21.8
20.3
3.5
2.7
2.3
2.0
30.6
23.7
20.9
18.3
* Consolidated; EPS is fully diluted
Company Represented By:
Mr Satish Gune,
VP Finance & Accounts
Mr Arnob Manda,l
Head IR
Ms Sweta Shetty,
Executive IR
Key Takeaways
Power (thermal/nuclear), hydrocarbons to drive orders; intake; maintains
guidance
L&T maintained its order-intake guidance of Rs650-703b (+25-35% YoY) in FY10,
helped mainly by power, hydrocarbons, airport and railway projects.
We understand there has been improvement in the overall environment in the
domestic and Middle East (ME) markets. Recently L&T secured orders worth Rs40b
(660MWX2 from JPA) and Rs53b (from ONGC). It expects large orders from
hydrocarbons, power and airport projects.
L&T indicated that power, hydrocarbons, airports, defense and railways would be
medium-term growth drivers.
L&T has submitted bids for two ONGC projects (B-193 and B-22) worth Rs72b, the
award of which is expected soon. ONGC will spend about Rs100b as its regular
annual spend in FY10. Even in the ME, inquiries have improved and L&T is exploring
opportunities in all areas of hydrocarbons.
In power L&T recently bagged a JPA order worth Rs40b. While L&T bid for bulk
power projects (11X660MW) from NTPC, the award is expected only in 2HFY10.
Other takeaways
L&T is facing increased competition in hydrocarbons in the ME and India from the
Korean companies.
L&T will invest Rs20b in the BOT SPVs in the next 18-24 months.
L&T Finance NCDs will be used to partially repay debt and to increase growth
opportunities.
Valuations and view
We expect L&T to report standalone EPS of Rs48.6 in FY10 and Rs52.7 in FY11. For the
consolidated entity we estimate EPS of Rs58.8/sh for FY10 and Rs65.4/sh for FY11. We
value L&T by the Sum of the Parts methodology. We arrive at a price target of Rs1,229/
sh based on: core business Rs969/sh (18x FY11E PER), L&T Infotech at Rs64/sh (12x
FY11E PER), L&T Infrastructure Development Projects Rs74/sh, L&T Finance Rs34/sh,
L&T Infrastructure Finance Rs15/sh, International Ventures at Rs45/sh and Manufacturing
Ventures at Rs28/sh.
Neutral.
Covering Analyst(s):
Satyam Agarwal
+91 22 3982 5410
AgarwalS@MotilalOswal.com
Shridatta Bhandwaldar
+91 22 3982 5417
Shridatta.Bhandwaldar@MotilalOswal.com
August 3 - 5, 2009
36

5th Annual Global Investor Conference
Lupin
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
LPC IN
82.1
938
1.6
992 / 518
1 / -15 / 18
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/08A 27,064
03/09A 37,759
03/10E 45,053
03/11E
51,950
3,334
5,015
6,057
6,907
37.8
56.9
68.7
78.3
43.3
50.4
20.8
14.0
24.9
16.5
13.7
12.0
6.0
5.5
4.2
3.3
31.0
37.1
36.8
32.7
22.0
25.6
27.0
25.8
3.2
2.4
2.0
1.7
20.0
13.8
11.4
9.9
Company Represented By:
Mr Ramesh Swaminathan,
President - Finance & Planning
Key Takeaways
Differentiated US portfolio, strong growth in India & ramp-up in Europe to be
the key growth drivers, Confident of resolving US FDA issues
Differentiated US portfolio:
Lupin has been able to exploit at least one low-
competition (high margin) product opportunity in the US every year for the past few
years. It currently has 56 ANDAs pending approval including filings for oral
contraceptives and ophthalmics which are likely to witness low-competition.
Management expects to file about 35 ANDAs with the US FDA in FY10E adding to
this pipeline. We expect Lupin's formulation exports to regulated markets to grow at
27% CAGR for FY09-11.
Strong growth in India formulations:
Lupin's domestic formulations revenues
have grown by more than 20% for the past three years led by new introductions
and ramp-up in some of the life-style segments. Management expects the growth
trajectory to continue over the next two years as well. We estimate 17% CAGR for
this business for FY09-11.
Confident of resolving US FDA issues:
Management has responded to the US
FDA warning letter and expects a re-inspection of the Mandideep facility in the next
few months. It is confident of resolving the cGMP issues over the next few months.
Latam & GCC markets:
While these are important markets for Lupin, it has not
been able to gain traction in these markets organically. Management indicated that
it will be exploring inorganic opportunities in these markets, with focus on acquiring
front-end companies with established doctor relationships.
Japan holds long-term potential:
Management indicated that the Japanese
generic market holds good long-term potential given the government's initiative to
boost generics to reduce healthcare costs. It expects 15% CAGR for this business
over the next few years. Management expects improvement in profitability of this
business in the long-term as it starts supplying products from its Indian facilities.
MTM forex losses have reduced:
Lupin had MTM forex losses of about Rs2.9b
(reflected in the B/S) as of 31st Mar-09 which, have reduced to Rs1.5b as of 30th
Jun-09 due to the sequential appreciation of the INR vs the US$.
Valuations and view
We expect Lupin's core operations (excluding one-off upsides) to record 17% sales and
earnings CAGR for FY09-11 led by traction in regulated markets and strong growth in
domestic formulations. The growth will be led by 27% CAGR for the regulated dosage
form business and 17% CAGR for the domestic formulations business. We expect the
company to record EPS of Rs68.7 for FY10E (up 20.8%) and Rs78.3 for FY11E (up 14%)
on a high base. We believe valuations at 13.7x FY10E and 12x FY11E EPS do not fully
reflect the sustained earnings growth and 30%+ RoE. Maintain
Buy.
Covering Analyst(s):
Nimish Desai
+91 22 3982 5406
NimishDesai@MotilalOswal.com
August 3 - 5, 2009
37

5th Annual Global Investor Conference
Mahindra & Mahindra
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
MM IN
283.8
920
5.5
944 / 235
16 / 170 / 62
YEAR
END
NET SALES S/A PAT ADJ.EPS CONS.
(RS M)
(RS M)
(RS)
EPS (RS)
P/E
(X)
CONS,
P/E (X)
ROE
(%)
ROCE
(%)
EV/
EV/
SALES EBITDA
3/08A 114,106
3/09A 130,937
3/10E
3/11E
161,944
175,142
10,332
9,297
14,289
15,604
36.4
32.8
50.3
55.0
54.5
53.0
77.7
88.5
25.3
28.1
18.3
16.7
16.9
17.4
11.8
10.4
23.8
17.7
22.8
21.1
16.8
13.2
19.1
18.4
1.7
1.7
1.3
1.2
16.0
16.4
9.9
9.1
Company Represented By:
Mr K Chandrasekar, Sr VP - Finance
Key Takeaways
Focus on retaining market share in UVs
M&M is focused on retaining its market share at the current level of 65%, by investing
in products, brands and strengthening its market reach.
The management believes that in UV market it is likely to increase its share in light
vehicles category due to inherent versatility and low penetration.
M&M has been able to gain market share from 51% in 1QFY09 to 65% in 1QFY10,
driven by encouraging response to Xylo. Xylo, which is yet to be launched in all the
markets, has taken share from its key competitors.
Tractor volume growth guidance of 5-10%
The management has guided 5-10% volume growth for the tractor industry. It does
not expect lower monsoons to have any meaningful impact on tractor volumes, as
there is no historical evidence of the same.
Volume drivers are in place for the tractor business in the form of lower penetration,
higher crop realization, non-agricultural usage, consolidation of land, etc. These
should help drive sustainable growth.
Availability of finance has improved since 1QFY10.
Leveraging tractor franchise to expand farm equipment business
M&M is focused on leveraging its product and distribution reach by expanding into
farm mechanization and power gensets.
In the farm mechanization space, it sells farm implements, harvesters, etc, under
the Mahindra and Swaraj brands.
In the engines/gensets space, its volumes grew 64% to 52,350 engines and revenues
grew 77% to Rs10.1b in FY09 (~Rs2.55b in 1QFY10).
Other takeaways
M&M plans to launch Scorpio pick-ups in US by December 2009. It is targeting
~10% share in a market size of 0.5m units per year.
The company has planned capex of Rs47b over FY10-13 for capacity expansion and
product development. Further, it has earmarked Rs32b for investment in subsidiaries
and for acquisitions.
M&M currently has no plans for its 9% treasury stock; but it could be used for
raising funds at short notice.
Valuation and view
We remain positive on M&M's prospects, given its dominance in its core business of UVs
& tractors, coupled with cheap valuations. Despite its exciting prospects, M&M trades at
a discount to most of its peers. The stock trades at 11.8x FY10E and 10.4x F11E
consolidated EPS.
Buy.
Covering Analyst(s):
Jinesh Gandhi
+91 22 3982 5416
Jinesh@MotilalOswal.com
August 3 - 5, 2009
38

5th Annual Global Investor Conference
Mahindra Lifespaces
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
MLIFE IN
40.8
317
0.3
580 / 83
9 / 100 / -42
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A
3/09E
3/10E
3/11E
2,311
3,418
3,870
5,454
449
641
875
1,622
16.0
15.7
21.5
39.8
271.2
-3.5
36.7
85.3
19.5
20.2
14.8
8.0
1.5
1.4
1.3
1.1
7.8
6.9
8.7
13.8
8.0
7.8
12.1
18.0
6.6
4.3
3.2
1.9
23.5
20.4
8.6
4.2
Company Represented By:
Ms Anita Arjundas, CEO
Mr Vishnu Banka, GM - Finance
Key Takeaways
Robust activity at the Chennai SEZ
The area under Chennai SEZ increased by ~180 acres in FY09, thereby increasing
the total area under the SEZ to ~1,550 acres.
Chennai SEZ has a total customer base of ~48 companies, of which 24 are operational
currently. Employment in the Chennai SEZ currently stands at ~12,000 employees
and is slated to increase to ~0.1m by FY14.
Mahindra Lifespaces (MLL) has planned two new residential launches in FY10: (i) a
project of ~1msf, and (ii) a project of ~1.5msf through its JV with Ayala Land.
Jaipur SEZ gains traction
MLL's Jaipur SEZ became operational in FY09, within 19 months of ground breaking,
with two of its clients commencing operations in their IT/ITeS SEZs. Of the proposed
area of 3,000 acres, it has already acquired 2,604 acres and is hopeful of completing
the remaining land acquisition within FY10.
~1.6msf of IT space (christened eVolve) is under construction, of which 0.23msf
has been completed and leased out to Infosys BPO and Deutsche.
As of FY09, MLL's Jaipur SEZ had a total of 29 clients. The management envisages
that the SEZ would attract an investment of Rs100b and employee base of ~0.1m
once it is fully operational.
Planned new launches across key cities
It has planned new launches of ~5.3msf of residential projects in Chennai (~2.3msf),
Pune (~0.3msf), Nagpur (~1.3msf) and Gurgaon (~1.4msf).
Update on planned SEZs
MLL is actively considering the launch of its proposed 52-acre biotech SEZ in Thane
(30km north-east of Mumbai), Maharashtra. It has received in-principle approval
for its planned multi-product SEZ at Karla, near Pune.
The management has stated that land acquisition is in progress for ~5,500 acres in
western Maharashtra (which includes ~3,000-acre multi-product SEZ at Karla, Pune).
Valuation and view
MLL has a healthy balance sheet, with low leverage of ~0.1x as of FY09 and no major
land outstandings. This, coupled with its strong management, differentiates the company
from its peers. Our SOTP value for MLL is Rs518/share: (1) Chennai SEZ at Rs96/
share, (2) Jaipur SEZ at Rs174/share, (3) residential vertical at Rs171/share, and (4)
cash/other rental assets at Rs76/share. The stock trades at 1x FY11E adjusted book
value of Rs281 and at 0.6x its SOTP value of Rs518. Our target price for MLL is Rs362/
share, which translates into a 14% upside. Maintain
Buy.
Covering Analyst(s):
Siddharth Bothra
+91 22 3982 5407
SBothra@MotilalOswal.com
Mansi Trivedi
+91 22 3982 5430
Mansi.Trivedi@MotilalOswal.com
August 3 - 5, 2009
39

5th Annual Global Investor Conference
Marico
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
MRCO IN
609.0
84
1.1
92 / 46
4 / -32 / 42
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/08A 19,050
03/09A 23,884
03/10E 27,467
03/11E
32,945
1,586
2,037
2,352
2,950
2.6
3.3
3.9
4.8
62.3
28.5
17.5
23.3
32.1
25.0
21.2
17.2
16.2
11.2
7.9
5.7
50.4
44.9
37.3
33.1
42.6
42.5
47.4
47.9
2.8
2.2
1.9
1.5
21.8
17.6
13.9
11.2
Company Represented By:
Mr Chaitanya Deshpande,
Head M&A and IR
Key Takeaways
Parachute volumes to grow 8-9%; lower input cost to enable margin expansion
Parachute Coconut Oil, Marico's cash cow, is likely to report volume growth of 8-9%
in FY10. The management indicated that the trend of up-trading from loose oils was
sustainable, and being the market leader, Parachute would benefit most.
Strong pricing power and benign prices of copra will result in margin expansion.
Copra prices are 20% lower YoY and purchasing by government agencies at minimum
support price (MSP) is unlikely to take it to previous highs.
Imposition of excise duty will have minimal impact, if any, as the company believes
it enjoys the pricing power to pass on the cost.
Hair oils in new growth orbit; trend to continue
The management said rising awareness of personal grooming and lifestyle changes
had put the hair oil category into a new growth orbit. The management maintained
its growth guidance of 14%.
Marico has begun prototyping two cooling oil variants - Nihar Naturals Coconut
Cooling Oil in Bihar and Parachute Advanced Coconut Cooling Oil in Andhra Pradesh
to expand its portfolio to cooling oils.
Kaya impacted by slowdown
Kaya, being a high ticket discretionary spend, has been impacted by the economic
slowdown. After the Budget, nearly 70% of Kaya revenue is likely to come under the
service-tax bracket.
Same-store sales in India have been flat and the imposition of service tax is likely to
result in deterioration of profitability. The management aims to open 15-20 new
stores a year.
The management expects the division to post EBITDA margin of 20%.
Global business profitability to rise
The franchise/distribution in Bangladesh for Parachute will be leveraged to expand
the group's product range and area of operations.
Supply-chain issues in Egypt have been sorted out. The commissioning of the
manufacturing hub in Egypt (tax/excise-free unit) will increase margins.
Valuation and view
We estimate 20.6% EPS CAGR over FY09-11. The stock trades at 21.2x FY10E EPS of Rs
3.9 and 17.2xFY11E EPS of Rs4.8. Maintain
Buy.
Covering Analyst(s):
Amnish Aggarwal
+91 22 3982 5404
AmnishAggarwal@MotilalOswal.com
Amit Purohit
+91 22 3982 5418
AmitPurohit@MotilalOswal.com
August 3 - 5, 2009
40

5th Annual Global Investor Conference
Maruti Suzuki India
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
MSIL IN
289.0
1,441
8.8
1516 / 428
26 / 75 / 128
YEAR
END
TOTAL INC.
(RS M)
PAT
(RS M)
ADJ. EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A 182,599
3/09A 209,075
3/10E
3/11E
251,517
288,167
17,100
12,175
18,300
20,434
59.2
42.1
63.3
70.7
9.1
-28.8
50.3
11.7
24.4
34.2
22.8
20.4
4.9
4.4
3.7
3.2
20.6
12.8
16.3
15.7
26.7
16.9
21.7
20.9
2.1
1.8
1.5
1.3
14.3
19.7
12.6
11.0
Company Represented By:
Mr Ajay Seth, CFO
Key Takeaways
Domestic volume growth guidance conservative at 5%
Cautiously positive outlook for FY10, with conservative domestic volume growth of
5% (v/s our estimate of 10% and ~13% YTD growth).
The management is cautious in its guidance despite strong momentum in domestic
volumes due to (a) lack of pick-up in volumes in top-10 cities, and (b) uncertainty on
monsoon. Monsoon is a concern, although there is no historical evidence of below-
normal monsoon impacting volumes.
However, it is witnessing pick-up in volume growth in tier-2 cities, whereas rural
markets continue to register strong demand.
Strong demand from export markets
The management expects export volume of 130,000 units (v/s our estimate of 119,000
units), driven by A-Star exports to European countries.
A-Star exports to European countries are driven by 'scrappage' incentives offered
the respective governments. Further, Maruti has commenced A-Star exports to non-
European markets.
Export of older models is recovering, with monthly run-rate of ~1,500 units.
Improving sales mix driven by newer models
Maruti's product mix has been improving since 3QFY09, with the contribution of A2
& A3 segment going up to 86.4% in 1QFY10 from 71.6% in 1QFY09.
This shift in product mix is driven by robust demand for newer products like Ritz, A-
Star, Swift and Swift Dzire.
Sales of diesel engine cars have also grown significantly (~66% YoY & 10% QoQ).
New levers of growth
Maruti is focused on exploring newer markets, especially in rural areas and smaller
towns. Volumes from the rural market, which contributes 14% of Maruti's total
volumes, grew 34% in 1QFY10. On the other hand, volumes from top-10 cities
(~46% of Maruti's total volumes) declined 4%.
Sales to government employees now contribute 14% as against 8% last year.
Contribution of True Value (used car network) to volumes, through exchange
program, now stands at 16%.
Valuation and view
With the macro environment improving, there are catalysts that would drive earnings
growth for the company. Improving demand outlook for its cars would drive stock
performance in the medium term. The stock trades at 22.8x FY10E and 20.4x FY11E
EPS. Maintain
Buy.
Covering Analyst(s):
Jinesh Gandhi
+91 22 3982 5416
Jinesh@MotilalOswal.com
August 3 - 5, 2009
41

5th Annual Global Investor Conference
ONGC
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
ONGC IN
2138.9
1,192
53.7
1220 / 538
-2 / 4 / 13
YEAR
END
NET SALES
(RS B)
PAT
(RS B)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/08A
03/09A
03/10E
03/11E
968
1,046
1,008
1,068
199
198
219
227
92.9
92.3
102.5
105.9
11.8
-0.6
11.0
3.3
12.9
12.9
11.6
11.3
3.3
2.9
2.5
2.2
27.7
23.7
22.8
20.5
27.5
23.2
23.6
21.4
2.3
2.3
2.3
2.1
5.5
5.6
5.7
5.7
Consolidated
Company Represented By:
Mr R S Sharma, CMD
Mr D K Sarraf, Director (Finance)
Mr B L Ghasolia,
Advisor (Finance).
Mr Sanjiv Kumar,
Chief Manager (F&A)
Mr L Nelson, Manager (F&A)
Key Takeaways
Clarity on subsidy-sharing policy expected:
ONGC indicated that the government
intentions are towards rationalization of subsidy sharing. In 1QFY10 ONGC shared only
towards auto fuel under-recoveries. The company pointed out that as indicated by the
Finance Minister in his Budget speech a new expert group was likely to be set up to
decide on subsidies and the policy on auto-fuel pricing.
ONGC production maintained vis-a-vis decline in global fields:
ONGC's oil and
gas production has been maintained against a non-OPEC production decline of 9.4% in
the past nine years (2000-08). ONGC's investments in IOR/EOR and redevelopment
projects to arrest the production decline have been over Rs300b. The cumulative
production through IOR/EOR till date has been 48mmt.
Spuds first well in Kerala-Konkan Basin:
On August 2 ONGC spudded (commenced
drilling) its first deepwater well in the Kerala-Konkan Basin. It is using a deepwater rig
hired from RIL at this well and drilling is expected to be complete in 101 days. After this
well the rig will be shifted to KG-DWN-98/2 block.
To adopt hub development for east-coast discoveries:
ONGC will adopt the hub
development for its east-coast discoveries (G-4-6, GS-29-1, G-4-5, KG-DWN-98/2, IB)
in three phases. Production is likely to commence in 2012.
Alternative-energy investment sources imminent:
The management expects
demand to rebound as the global economy recovers. Besides, over the long term, oil
prices are likely to rise and hence it will be imperative to shift towards alternative
energy sources (CBM, UCG, shale gas, gas hydrates).
US$50b investment in 15-20 years required in Indian E&P:
Indian sedimentary
basins are poorly explored and require technology and capital-intensive accelerated
exploration. Only 22% of the area is well explored and investment of US$50b will be
necessary in next 15-20 years to increase E&P in India, which will also help in reducing
dependence on imported oil.
Valuation and view:
We assume oil price of US$60/bbl in FY10 and US$65/bbl in
FY11. We build upstream (ONGC, OIL and GAIL) share at 1/3
rd
level in our estimates.
We estimate ONGC's EPS at Rs103 in FY10 and Rs106 in FY11. At the CMP of Rs1,194/
sh, ONGC quotes at PER of 11.6x FY10E EV/EBITDA of 5.7.
Neutral.
Covering Analyst(s):
Harshad Borawake
+91 22 3982 5432
HarshadBorawake@MotilalOswal.com
August 3 - 5, 2009
42

5th Annual Global Investor Conference
Pantaloon
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
PF IN
175.2
314
1.2
417 / 105
-10 / 37 / -18
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
06/08A 50,489
06/09E 63,845
06/10E 74,154
06/11E
87,242
1,259
1,362
1,842
2,395
7.9
7.8
9.7
12.3
90.0
-1.6
24.5
26.7
39.8
40.5
32.5
25.7
2.7
2.8
2.5
2.3
6.8
6.9
7.7
8.9
9.3
11.4
11.6
11.7
1.4
1.1
0.9
0.8
15.2
10.6
9.6
8.6
Company Represented By:
Mr Prashant Desai,
Chief Investor Relations
Key Takeaways
Demand revival reflected in same-store sales growth
The management indicated increasing signs of revival in consumption trends after the
slump in the October-December quarter. The recently concluded end-of-season sale
beat expectations with increasing footfalls and conversions. Though Home Retailing
continues to disappoint long-term opportunity is big. The management expects Home
Solutions' profitability to improve as volumes are likely to rise in FY10.
Margins to rise due to improved sales mix, higher private-label share
In five years Pantaloon expects 40-50% of sales to from its own brands including 85-
90% in fashion (75% currently), 30% in household and personal-care products, 15-
18% in electronics and a high share in home products. Its area-addition in the higher-
margin fashion segment will be higher than the food and grocery sections which will
boost profitability. The management indicated an EBIDTA margin band of 10-12% which
shows a 200bp expansion in the medium term. Near-term margins are expected to hold
strong due to 1) the rising share of private labels in sales mix 2) higher proportion of
sales from full-price products (81% in FY09 sales season against 65% in FY08) and 3)
cost control measures in lease rentals, employee costs and overheads.
Targets space addition of 5msf by FY11; capex requirement of Rs5b
The company plans to add 5msf in FY10 and FY11 (2.5msf each year). The company
believes the capex requirement will be capped at Rs2,500/sf (including working capital)
resulting in a requirement of Rs5b a year for the next two years. Recent capital infusion
of Rs 3.8b was used to repay debt. The management said it could raise funds either
through a QIP issue or a stake sale to a strategic partner.
Consolidated results to be in black in FY10; not to fund units in near term
The management has guided for a profit of Rs750m in FY10 on a consolidated basis.
The swing is largely due to key subsidiaries like Home Solutions and Future Capital
breaking even/contributing marginally to profits, even as others like KB Fair Price and
Future Bazaar incur losses. But the management indicated that most subsidiaries were
fully funded and those that weren't were likely to get funding on their own.
Valuation and view
We estimate 25.6% EPS CAGR over FY09-FY11E. The stock trades at 32.5xFY10E EPS
of Rs9.7 and 25.7xFY11E EPS of Rs12.30. Maintain
Buy.
Covering Analyst(s):
Amnish Aggarwal
+91 22 3982 5404
AmnishAggarwal@MotilalOswal.com
Amit Purohit
+91 22 3982 5418
AmitPurohit@MotilalOswal.com
August 3 - 5, 2009
43

5th Annual Global Investor Conference
Piramal Healthcare
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
PIHC IN
209.0
321
1.4
367 / 164
-9 / -18 / -15
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/08A 28,728
03/09A 32,448
03/10E 37,753
03/11E
43,492
3,643
3,580
4,781
6,087
17.4
17.1
22.9
29.1
58.9
-1.7
33.5
27.3
18.4
18.7
14.0
11.0
6.1
5.1
4.0
3.1
34.0
29.7
31.8
31.7
25.6
21.0
24.2
26.7
2.6
2.4
2.0
1.7
13.6
12.7
9.7
7.8
Company Represented By:
Ms Nandini Piramal, ED
Mr Murari Rajan, ED
Mr Sagar Gokani, Manager
Key Takeaways
Double-digit growth for domestic formulations; improving profitability in
CRAMS; Debt reduction to be key earnings drivers
Domestic business to record double-digit growth:
Expanded field force,
aggressive new launches and increased geographical penetration will be key drivers
for this business which continues to be the single largest profit contributor. Management
indicated that this business will continue to grow in double-digits for next few years.
We expect the company to record about 13% revenue CAGR for this business over
the next two years on a high base.
Clarity on revival of CRAMS supplies from India by Dec'09:
Management
expects clarity on revival of CRAMS supplies from India by Dec'09 when customers
firm up plans for outsourcing for CY10 and after some of the large M&A deals
(proposed) in the global pharmaceutical space receive regulatory approval.
Restructuring on UK CRAMS business nearing completion:
With the closure
of the Huddersfield facility and transfer of contracts from this facility to other sites,
the restructuring of the UK CRAMS business is nearing completion. Management
does not expect the need for any further restructuring/rationalization.
Contract renewals & restructuring at UK operations to improve
profitability:
PHL has renewed part of the Pfizer contract at its Morpeth facility
and is confident of further renewals. Closure of the Huddersfield facility is likely to
adversely impact topline but will expand profitability as some of the customer contracts
get shifted to India.
Debt to reduce from FY10E:
PHL's debt-equity has increased significantly from
0.7x in FY08 to about 1x currently due to funding of acquisitions (Rs3b) and capex
(Rs1.3b). Post the significant spend on acquisitions, management has indicated that
the company is unlikely to bid for any large acquisition in FY10E. Management is
targeting D/E to improve from current 1x to about 0.7x by March 2009.
Reiterates FY10 guidance:
Management has reiterated its FY10E guidance of
16-17% topline growth, EBITDA Margins of 21-22% and EPS of Rs23.5-24/share.
Valuation and view
While we expect 1HFY10 to be challenging for PHL given the inventory correction
undertaken by CRAMS customers, we believe that PHL's strong MNC relations will ensure
traction in CRAMS business in the medium-term. A steady double-digit growth for the
domestic formulations business with improving profitability and potential debt reduction
should also augur well over the next two years. We expect EPS of Rs23 for FY10 (up
34%) and Rs29.1 for FY11 (up 27%), leading to 30% earnings CAGR over FY09-11E
(albeit on a low base) and 30%+ RoE in FY10E and FY11E. Valuations at 14x FY10E and
11x FY11E EPS do not fully reflect these positives. Maintain
Buy.
Covering Analyst(s):
Nimish Desai
+91 22 3982 5406
NimishDesai@MotilalOswal.com
August 3 - 5, 2009
44

5th Annual Global Investor Conference
Reliance Capital
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
RCFT IN
246.2
913
4.7
1475 / 274
-4 / 74 / -41
YEAR
END
EBITDA
(RS M)
PAT
(RS M)
EPS
(RS)
EPS
GROWTH (%)
P/E
(X)
P/BV
(X)
ROE
(%)
3/08A
3/09A
3/10E
3/11E
12,161
13,246
9,045
11,741
10,057
10,157
5,720
8,169
40.9
41.3
23.2
33.2
43.0
1.0
-43.7
42.8
22.4
22.1
39.3
27.5
3.4
3.0
2.8
2.6
16.9
14.4
7.4
9.9
Company Represented By:
Mr Praveen Challa, SVP - IR
Ms Savli Mangle, AVP - IR
Key Takeaways
The management's focus has changed from faster top-line growth and market-share
gains to profitability. Across all the businesses cost controls and optimization remain
key focus areas. The management mentioned that asset management, life insurance
and broking and distribution remain core businesses, and consumer finance and general
insurance remain non-core businesses.
Reliance Life value unlocking in FY10
The management is confident of unlocking value from its life-insurance business in
FY10 through either an IPO or stake sale. A proposal for approval for an IPO is with
the government of India.
Management is confident of growing at least twice as much as private life insurers
in FY10.
Reliance Life reported NBAP of Rs974m in 1QFY10 with a margin of 21.2% against
20.9% in FY09. The company sees losses to fall to Rs2.5-3b by FY10 from Rs10.8b
in FY09. It expects to break even in FY11. So far Reliance has invested Rs27.4b in
life insurance. It expects to infuse Rs4-5b in FY10 and Rs1.5-2b in FY11.
The management believes the recent IRDA proposal of putting a cap on ULIP charges
can be managed without significant impact on profitability by controlling costs and
altering a few policy terms and conditions.
Reliance consumer finance aims at 1% RoA
NPAs are near their peak-net NPAs of Rs2.8b comprise 3%+ of the loan book.
Incremental slippages have fallen from historical levels.
The loan-book size is seen at Rs100b by FY10-a growth of 15%. The management
aims to make at least 1% RoA from this business. The management is considering
securitization to keep the balance sheet light and improve RoA.
Other takeaways
As on date the group has a proprietary book of Rs21b with unrealized gains of Rs5b.
Reliance General Insurance will grow 10-12% only with a focus on improving the
combined ratio and profits.
The broking business will consolidate/rationalize its operations in FY10 and might
consider changing the fee structure to boost future profits.
Capital requirements across the businesses have fallen as the desired scale has
been achieved and profitability will improve.
Valuation and view
We expect RCFT to report EPS of Rs23 in FY10 and Rs33 in FY11. BV is expected to be
Rs322 and Rs350 in FY10 and FY11. RCFT trades at 27.5x FY11E PE and 2.6x FY11 BV.
Maintain
Neutral.
Our FY11E SOTP value is Rs863.
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009
45

5th Annual Global Investor Conference
Reliance Communications
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
RCOM IN
2063.0
280
12.1
463 / 131
-9 / 0 / -43
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A 190,679
3/09A 229,410
3/10E
3/11E
267,218
326,819
55,095
61,552
52,094
67,066
26.7
29.8
25.3
32.5
71.0
11.7
-15.4
28.7
10.5
9.4
11.1
8.6
2.1
1.5
1.4
1.2
22.7
18.7
13.1
15.0
12.0
8.9
6.8
9.7
3.52
3.48
3.0
2.3
8.2
8.6
7.2
5.4
Company Represented By:
Mr Arvind Narang, Joint president
Key Takeaways
Strong wireless traffic growth driven by GSM traction
RCom reported the highest QoQ traffic growth of 11.5% (8-10% reported by peers),
driven by increased usage by GSM subscribers. Customer response to GSM has
been better than the company's expectations.
The company had withdrawn promotional minutes offered as part of the "customer
experience program" in March 2009. Migration of new GSM subscribers to normal
tariff plans supported RPM (+0.4% QoQ excluding termination impact).
Profitability to be sustained
RCom expects profitability to be sustained along with strong volume growth driven
by GSM.
While tariffs could trend down in subsequent quarters, higher network utilization
would lead to cost efficiencies, thus leading to stable wireless margins for RCom.
Coverage capex behind, capex to be driven by capacity requirements
RCom's 50,000 GSM cell site base is adequate for coverage requirements.
Incremental capex would be low, as RCom can add electronics to the existing site
base for capacity requirements once the current capacity (of start-up network) is
utilized.
The company would be adding 5,000-15,000 cell sites in FY10 depending on (1)
traffic and subscriber growth, and (2) tower availability from USO.
FY10 capex guidance remains unchanged at Rs100b.
High CDMA spectrum allocation with RCOM ideal for data applications
RCom has seen good response to the recently launched EVDO-based high speed
wireless internet service in 35 cities.
Significant (~5 MHz) allocation in the 800 MHz band allows RCom to dedicate spectrum
exclusively towards high speed data applications like data cards.
Non-wireless business outlook stable
RCom's non-wireless business growth has been sluggish due to cautious enterprise
spending and certain regulatory developments.
The management believes that demand has bottomed out and business outlook for
Global and Broadband segments is stable.
Valuations and view
The stock trades at an EV/EBITDA of 7.4x FY10E and 5.5x FY11E, and P/E of 11.5x
FY10E and 8.9x FY11E.
We maintain
Buy
on operational turnaround, driven by the GSM launch, sharp decline
in capex intensity and cheap valuations.
Covering Analyst(s):
Shobhit Khare
+91 22 3982 5428
Shobhit.Khare@MotilalOswal.com
August 3 - 5, 2009
46

5th Annual Global Investor Conference
Reliance Industries
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
RIL IN
1573.4
2,075
68.7
2535 / 930
-4 / -14 / -15
YEAR
END
NET SALES
(RS B)
PAT
(RS B)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/08A
03/09A
03/10E
03/11E
1,334
1,463
1,771
1,985
143
156
207
263
98.2
103.1
125.5
158.5
19.5
-1.1
21.7
26.3
21.1
20.1
16.5
13.1
3.7
2.9
2.4
2.1
20.1
16.1
16.3
17.9
16.6
13.7
14.9
17.3
2.5
2.3
2.0
8.0
14.3
14.5
10.0
8.0
FY10E onwards includes RPET financials
Company Represented By:
Mr Robinder Singh, Vice
President (Investor Relations)
Mr Hemen Modi, General
Manager (Investor Relations)
Key Takeaways
KG-D6 oil and gas production:
KG-D6 is producing 31mmscmd of gas and 12kbpd of
crude oil. RIL commenced oil production at KG-D6 in September 2008 and gas production
in April 2009.
Strong near-term petchem margins seen:
Petchem margins will continue to remain
strong in the near term due to RIL's domestic focus. RIL does not expect margins to be
impacted by new Middle East supply, as they are likely to target the US.
Refining margins affected by low diesel cracks; utilization seen to stay high:
RIL's GRMs have been under pressure in recent quarters led by global weakness in the
refining sector (US$7.5/bbl in 1QFY10, lowest in the past 15 quarters) and particularly
lower diesel cracks. Its out-performance over the regional benchmark, Singapore GRM,
has declined due to lower light-heavy crude price differentials. Operating rates are
expected to remain high due to lower operating costs and flexibility in refinery production.
New Reliance Petroleum (RPET) refinery operating above 90% utilization:
New
Reliance Petroleum refinery is operating at ~93% capacity utilization. In 1QFY10 RPET
processed 4.04mmt of crude (55% cap utilization) and produced 49kt of PP. But it is yet
to reach full complexity pending commissioning of one or two downstream units, and
expects to reach full complexity by the end of August.
Investments in retail and SEZ have slowed:
Incremental investments in retail and
SEZ have been low in recent quarters. Cumulative investment until 1QFY10 was Rs55b
in retail and Rs28b in SEZ.
Valuation and view:
We estimate RIL to report EPS of Rs126 in FY10 and Rs159 in
FY11. At the CMP of Rs2,076/sh, RIL quotes at PER of 16.5x FY10E and 13.1x FY11E and
EV/EBITDA of 10x FY10 and 8x FY11.
Buy.
Covering Analyst(s):
Harshad Borawake
+91 22 3982 5432
HarshadBorawake@MotilalOswal.com
August 3 - 5, 2009
47

5th Annual Global Investor Conference
Reliance Infrastructure
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
RELI IN
224.3
1,212
5.7
1374 / 353
-6 / 58 / 10
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS*
EPS
P/E*
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A
3/09A
3/10E
3/11E
63,642
96,965
116,299
128,413
7,442
9,081
12,301
14,032
33.2
40.5
54.8
62.5
-7.2
22.0
35.5
14.1
36.5
29.9
22.1
19.4
2.8
2.6
2.4
2.2
11.0
10.2
10.4
10.9
9.7
9.0
10.1
10.5
3.4
2.4
2.1
2.4
40.1
27.5
24.4
19.6
* Consolidated, Fully Diluted
Company Represented By:
Mr Amit Jain,
Head IR
Key Takeaways
Strong EPC order book; building competencies for EPC in other sectors
The EPC division order book stands at Rs206b of which Sasan UMPP accounts for
Rs127b (62% of order book). The number of employees for the division currently
stands at 1,550 (against 1,050 in March 2008), and expected to be ramped up to
3,500 in 18 months.
RELI is expanding its competence of the EPC division towards infrastructure projects
like airports, ports and metros.
Infrastructure assets under development worth Rs135b
RELI has a portfolio of 11 infrastructure projects under development, valued at
Rs135b, while it is sole/L1 bidder for projects valued at Rs200b. The company
recently signed a concession agreement for Gurgaon-Faridabad road project (Rs8b)
and financial closure is expected in 2QFY10. It is an L1 bidder for the Jaipur-Reengus
road project (52km).
Mumbai metro phase I is expected to be completed by September 2010 and RELI
has emerged as the sole bidder for Mumbai metro phase II. The cost of phase II
development is Rs110b, of which VGF is Rs23b.
Real-estate development is expected to contribute meaningfully to the Delhi metro
project NPV (59,000 sq. meters, spread over four locations).
Profitability of Mumbai regulatory area may not be impacted
Demand for Mumbai region is 1,540MW, met from 500MW Dahanu (cost of Rs2.3/
unit), 500MW from Tata Power (Rs5/unit) and 540MW on spot basis (Rs7-9/unit)
RELI's regulatory business profit for Mumbai region is unlikely to be impacted given
that Tata Power will have to use RELI's distribution network.
RELI has floated tenders to source medium-term power of 1GW (from November
2009 to 2014) and 1.5GW on a long-term basis (November2014 onwards). The
tender is expected to be finalized by October 2009.
Net cash/liquid investments of Rs27b
Gross cash and equivalents in FY09 was Rs101b, comprising Rs54b in cash/MFs,
Rs16b in ICDs Rs30b in preference shares.
RELI has received advances of Rs18b from Reliance Power towards EPC of Sasan
UMPP and Krishnapatnam UMPP.
Valuation and view
We expect RELI to report net profit of Rs12.3b in FY10 (35.5% YoY) and Rs14b in FY11
(14% YoY). The stock trades at a PER of 22.1x FY10E and 19.4x FY11E. We arrive at a
SOTP based target price of Rs1,278/share. Maintain
Buy.
Covering Analyst(s):
Satyam Agarwal
+91 22 3982 5410
AgarwalS@MotilalOswal.com
Nalin Bhatt
+91 22 3982 5429
NalinBhatt@MotilalOswal.com
August 3 - 5, 2009
48

5th Annual Global Investor Conference
Reliance Power
Company Represented By:
Mr S Kasturi,
Additional Vice President - IR
Key Takeaways
Project progress on track, cumulative capex of Rs61b
Reliance Power's (R Power) ongoing projects, viz, Rosa Phase 1, Butibori project
and Sasan UMPP are progressing as per schedule.
Cumulative capex on various projects stands at Rs61b, including Rs20b for Rosa
Phase 1, Rs5b for Rosa Phase 2, Rs16b for Sasan UMPP, Rs10b for Krishnapatnam
UMPP, Rs4b for Butibori project and Rs6.5b towards Dadri and other projects (even
cost of DPR is included for hydro power projects).
Out of the total capex of Rs61b incurred on various projects till date, Rs45b is equity
contribution and Rs16b is debt (pertaining to Rosa Phase 1).
Financial closure achieved for 5.8GW projects, Krishnapatnam next in line
R Power has achieved financial closure for 5.8GW of projects under construction
including Sasan UMPP (4GW), Rosa Power Phase 1 & 2 (1.2GW), Butibori (600MW),
and it is working on financial closure for Krishnapatnam (4GW).
Financial closure for Krishnapatnam UMPP is in final stages, as IDFC and PFC have
been appointed lead arrangers and have together sanctioned debt of Rs26b for the
project. The management expects financial closure to be complete by end FY10.
Rosa Phase 1 to be commissioned by March 2010
Management expects 600MW of Rosa power project to be completed by March
2010, vs total project completion timeline of June 2010. The project is based on new
tariff guidelines and thus, project return will be based on 16% RoE plus incentives.
Rosa Phase II is expected by July/August 2011; of this, 300MW is based on regulated
return, and 300MW on merchant sales.
1,320MW of Sasan UMPP likely to be commissioned by FY12
Land for the main plant area is now almost completely available with the company,
while land acquisition for mine is underway. Management is hopeful of commissioning
1st unit of project from Dec-11, and 2nd unit by Mar-12. The entire project will be
commissioned by Mar-13.
The company has also initiated evaluation of mining equipment for mine development.
Orders are likely to be placed soon.
50% of Chitrangi power could be kept under merchant basis
Of the planned capacity addition of 4GW at Chitrangi, ~1.2GW has been sold to
Madhya Pradesh SEB at levelised rate of Rs2.45/unit. It plans to further bid additional
capacity under Case 1 bidding.
The company has applied for linkages for the project separately, and will have ~10-
11m tons from coal blocks allotted for Sasan UMPP. Management expects to achieve
financial closure for the project by end 2010 and targets to commission 1st unit by
Dec-12.
Covering Analyst(s):
Satyam Agarwal
+91 22 3982 5410
AgarwalS@MotilalOswal.com
Nalin Bhatt
+91 22 3982 5429
NalinBhatt@MotilalOswal.com
August 3 - 5, 2009
49

5th Annual Global Investor Conference
Rural Electrification Corporation
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
RECL IN
858.7
188
3.5
208 / 53
9 / 58 / 102
YEAR
END
NET INCOME
(RS M)
Adj PAT
(RS M)
EPS
EPS
P/E
(X)
P/RBV
(X)
ROE
(%)
ROA
(%)
P/ADJ BV
(X)
(RS) GROWTH (%)
3/06A
3/07A
3/08A
3/09A
9,055
11,113
14,740
20,439
6,236
7,766
9,376
14,117
8.0
9.9
10.9
16.4
-20.3
24.5
9.8
50.6
24.7
19.8
18.0
12.0
3.7
3.8
3.2
2.7
15.7
17.4
17.1
21.2
2.3
2.3
2.4
2.9
3.7
3.2
2.7
2.4
ABV includes DTL, P/RBV is BV excluding DTL. PAT, EPS, RoA and RoE are before DTL provision
Company Represented By:
Mr D S Ahluwalia,
GM Finance and Accounts
Key Takeaways
With cumulative sanctions of >Rs1,000b in last three years, loan growth outlook for
next couple of years remains robust (25% growth sustainability).
Incremental spreads would be sustained at 2.75-3% vs current spreads at 3.5%.
Higher spreads currently are function of favorable ALM mismatches.
Considering the escrow mechanism and emerging cash profile of SEBs, chances of
NPAs remain low in management's view. Government's thrust on improving financial
health of SEBs augurs well for long term outlook.
Rs70b of low cost 54EC bonds (average rate of 5.5-6%) are maturing in FY10. To
that extent, there would be upward pressure on cost of funds as a large part of
these bonds get replaced by commercial borrowings. However, as Rs78b of loans
are expected to get reset upwards by at least 250bp in 2HFY10, the impact would
be managed. Rs120b of loans are subject to reset clause in FY11 and management
expects the upward revision to be at least 200bp.
The management is optimistic of getting approval from government of India for
capital raising in FY10. The extent of dilution by the government and mode of capital
raising remain uncertain. Including accumulated DTL, REC's Tier I stands at 12%+.
The management intends to diversify its borrowings profile to sustain the business
model. ECBs are being actively considered.
Valuation and view
REC delivered EPS (pre DTL provision) of Rs16 in FY09 and BV (including accumulated
DT liability) was Rs83 as of March 2009. RoA was 3% and RoE 21%.
Stock trades at 2.4x FY09 BV and 12x FY09 EPS. We have no rating on the stock.
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009
50

5th Annual Global Investor Conference
SBI Life
Company Represented By:
Mr Abhijit Gulanikar, CIO
Mr Kedar Patki, Finance Controller
Key Takeaways
Management objective remains to be the largest private life insurance company in
India. In 1QFY10, SBI Life has emerged as the largest private life insurance company
in terms of new business premiums.
The management remains confident that life insurance business in India can sustain
15% growth for a couple of years more at least, considering the under penetration
and higher savings rate.
The management believes that most of the physical infrastructure expansion (SBI
Life increased branches from 207 in June 2008 to 490 in June 2009) is done and
improvement in efficiency would drive growth going forward.
Currently, 85% of SBI group branch network of 16,000 sell SBI Life products.
However, the efficiency is below target for >80% of these branches. The management
believes the group's low-cost model of bancassurance would ensure superior
profitability.
Low persistency remains an area of concern. In FY09, persistency at <45% was
one of the lowest in the industry and significantly below management's target of
70%. Management attributes this to collection inefficiency and lower focus in past.
With increased efforts on improving renewal collections, management aims to
improve this to ~70% over next couple of years.
The recently announced cap on charges for ULIP products would lead to refiling of
more or less all the products. Management believes it would certainly have impact
on overall business profitability for all the players but quantifying the same is difficult
at this point of time.
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009
51

5th Annual Global Investor Conference
Shree Renuka Sugars
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
SHRS IN
316.9
187
1.2
189 / 41
26 / 74 / 34
YEAR
END
NET SALES
(RS M)
*PAT
(RS M)
*EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/05A
3/06A
3/07A
3/08A
*Adjusted
7,955
11,047
9,506
21,143
561
1,205
830
1,181
2.3
4.9
3.3
5.5
-
114.6
-31.1
64.3
47.7
22.2
32.3
19.7
27.3
8.5
6.1
6.6
142.0
63.2
22.4
21.4
93.1
36.0
12.1
15.2
3.4
5.2
6.3
3.0
31.8
36.0
45.7
25.0
Company Represented By:
Mr Narendra Murukumbi,
MD and CEO
Mr Gautam Watve,
Head - Strategy and Planning
Key Takeaways
Outlook on sugar
Shree Renuka Sugars (SRSL), estimates FY10 domestic sugar output will rise 15%
YoY to 17.5m tons against 15.25m tons in FY09 and sugar consumption will rise to
23m tons in FY10 from 22.5m tons in FY09. SRSL believes alcohol production is
likely to rise to 1.75b liters from 1.5b liters, an increase of 17% YoY.
SRSL is likely to benefit with inventory gains from India's sugar-deficit situation in
FY10. SRSL has contracted for more than 1m tons of raw sugar, to be used until
3QFY10, at lower than current international prices, which will allow it to reap the
benefits of inventory gains.
Sugar refining business to boost growth
SRSL has the largest raw sugar refining capacity and is best placed over next two
years as India needs to import raw sugar to tide over the shortage.
SRSL announced expansion plans to expand its capacity at Athani, Karnataka, from
1,000tpd to 2,000tpd and set up sugar refining capacity of 1000tpd at Havalga in
Karnataka. The plants are due to be commissioned by December 2009.
After the expansion, SRSL's sugar refining capacity will rise to 6,000tpd in FY10 and
might increase to 9,000tpd in FY11.
The management indicates sugar production is likely to climb to 1.75m tons in FY10
and 2.15m tons in FY11 v/s 1.03m tons in FY09 boosted by raw sugar output, which
is due to rise to 1.2m tons in FY10 and 1.4m tons in FY11 from 0.65m tons in FY09.
Renewable business seen rising
SRSL's ethanol production capacity is likely to rise to 375m liters in FY10 from 250m
liters in FY09 and ethanol production to climb to 1,230KLP in FY10 from 930KLPD, a
rise of 32% YoY.
SRSL's power capacity is likely to rise to 173MW in FY10 and 233MW in FY11 from
143MW in FY09.
SRSL signed an MoU with Hindustan Petroleum Corp (HPCL) to form a JV, in which
SRSL will hold 74%. The venture will set up an integrated sugar and ethanol
production facility (300klpd) in September 2009.
Valuation and view
SRSL is relatively better placed than its peers largely due to its presence in the southern
region, low leverage and high contribution from value-added business.
Not rated.
Covering Analyst(s):
Siddharth Bothra
+91 22 3982 5407
SBothra@MotilalOswal.com
Mansi Trivedi
+91 22 3982 5430
Mansi.Trivedi@MotilalOswal.com
August 3 - 5, 2009
52

5th Annual Global Investor Conference
Shriram Transport Finance
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
SHTF IN
203.5
310
1.3
357 / 150
-9 / -11 / -6
YEAR
END
NET INCOME
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
CAR
(%)
ROE
(%)
ROA
(%)
P/ABV
(X)
(RS) GROWTH (%)
3/08A
3/09A
3/10E
3/11E
12,124
17,535
21,354
26,793
3,898
6,124
7,078
8,894
19.2
30.1
33.5
42.0
85.6
56.8
11.2
25.6
16.1
10.3
9.3
7.4
3.5
2.8
2.1
1.7
13.6
19.2
15.3
15.0
27.4
30.3
26.5
25.9
2.7
2.8
2.7
3.0
3.6
2.8
2.2
1.8
* Valuation multiples are adjusted for SBI Life's value
Company Represented By:
Mr Sanjay Mundra, VP IR
Key Takeaways
Management might maintain surplus liquidity for one or two quarters more until
economic recovery becomes sustainable and visible.
Core margins/spreads are expected to improve from FY09 level of 7.2% due to
(i) lower cost of funds since the company is a wholesale borrower, (ii) the possibility
of an up-tick in loan growth (linked to economic revival), and (iii) lower elasticity of
yield on loans, given its niche area of operation.
Risk of delinquencies and higher credit cost due to the improving macro economic
situation, in turn improving the financial health of borrowers.
AUM CAGR of 68% over FY05-09 will slow as new CV sales are expected to remain
sluggish and the base has broadened. But STF maintains 15-20% growth for FY10
driven mainly by the used-CV business.
Valuation and view
We expect the company to report EPS of Rs34 and Rs42 in FY10 and FY11 respectively.
BV will be Rs145 and Rs179.
Return ratios will remain superior of over 2.7% and over 26% over FY10-11.
The stock trades at a P/E of 9.3x FY10E and P/E of 7.4x FY11E and P/BV of 2.2x
FY10E and P/BV of 1.8x FY11E. Maintain
Buy
with a target price of Rs358.
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009
53

5th Annual Global Investor Conference
Simplex Infrastructure
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
SINF IN
49.5
383
0.4
497 / 102
-13 / 108 / -24
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A
3/09A
3/10E
3/11E
28,121
46,888
55,123
61,963
1,021
1,324
1,786
2,173
20.6
26.8
36.1
43.9
65.5
29.7
34.9
21.6
18.7
14.4
10.7
8.8
2.5
2.0
1.9
1.6
19.8
15.7
18.4
19.6
18.1
17.0
18.1
19.3
0.9
0.6
0.5
0.5
9.5
7.0
5.6
5.0
Company Represented By:
Mr Amitabh Mundhra, Director
Key Takeaways
Order intake target of Rs80-100b in FY10
Order inflow in FY10 is expected to improve substantially over FY09. During FY10
Simplex is targeting order intake of Rs80-100b (up 60-100% YoY) against Rs50b in
FY09. This will translate into an FY10 order book of Rs130-150b. The management
is targeting revenue of Rs55b (over 17.5% YoY) in FY10.
Order inflow improved from July 2009 (Rs4.6b), indicating an improved environment
compared with the past two to three quarters. We understand that after September-
October 2009 orders with better profitability are expected.
While the order intake in 1QFY10 is low, L1 has increased to Rs18.7b (against
Rs10b in 4QFY09). The order pipeline also improved in the past three months. Bids
pending for Simplex improved from Rs260b in 4QFY09 to Rs320b 1QFY10, excluding
pre-qualified projects. Pipeline improved in the Middle East, where it increased
from Rs70b to Rs130b.
During FY10 order inflow growth in the domestic market will be driven by segments
such as power, urban infrastructure, buildings and housing and industrials. Power
orders from the private sector have improved as well.
The order book has 60% of private projects against 70% at the start of FY09.
Capex benefits to kick in; EBITDA margins to expand in 12-18 months
We understand EBITDA margins are likely to improve in the next 12-18 months by
100-150bp. This will be driven mainly by (1) full benefit of higher capex incurred in
FY08 and FY09 (Rs8b) and (2) benefits from a reduction in low-margin contracts in
the order book.
Return ratios are expected to improve as well since equipment is expected to attain
optimal utilization. The fixed asset return for Simplex is likely to improve to 5-6x
from 3.8x in FY09.
Valuation and view
We expect FY10 EPS at Rs36 (up 35%YoY) and FY11 EPS of Rs44 (up 22%YoY). At CMP,
the stock is trading at PER of 10.7xFY10E and 8.8xFY11E. Maintain
Buy
with a price
target of Rs439/sh (based on 10xFY11E earnings).
Covering Analyst(s):
Satyam Agarwal
+91 22 3982 5410
AgarwalS@MotilalOswal.com
Shridatta Bhandwaldar
+91 22 3982 5417
Shridatta.Bhandwaldar@MotilalOswal.com
August 3 - 5, 2009
54

5th Annual Global Investor Conference
Sintex Industries
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
SINT IN
135.5
213
0.6
386 / 70
-17 / 10 / -48
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/08A
03/09A
03/10E
03/11E
22,978
31,356
35,398
41,058
2,170
3,251
3,141
4,212
16.0
24.0
23.2
31.1
35.5
49.9
-3.4
34.1
8.9
8.6
6.9
1.6
1.4
1.2
21.5
19.8
17.3
18.6
14.7
12.3
14.0
15.8
1.1
1.0
0.8
6.7
6.1
4.6
Company Represented By:
Mr Sunil Kanojia, Group President
Mr Rajiv Naidu, Head - IR & PR
Key Takeaways
Reiteration of FY10 guidance
Sintex reiterated its FY10 guidance of 5-10% topline growth and 20-25% bottomline
growth.
Monolithics and pre-fabs to sustain FY10 revenue growth
In 1QFY10 revenue from monolithics was Rs930m, almost flat YoY. This is mainly due to
spillover of business into subsequent quarters. Thus, for the full year FY10, Sintex
expects monolithics revenue of Rs7.5b, up from Rs4.5b in FY09. Order book is healthy
at Rs18b. Even after significant drawdown in FY10 Sintex expects to maintain book-to-
bill of 2x by the end of the year or order book of Rs15b.
The pre-fab structures business was weak in 1QFY10 at Rs880m down from Rs1,380m
in 1QFY09. This was mainly because: (1) lower government business due to the elections
and (2) passing on of lower raw material prices. Sintex expects this business to pick up
strongly subsequently and to end the year with 15-20% volume growth.
Subsidiaries - a mixed bag
Sintex's US subsidiary, Wausaukee Composites, makes plastic composite components
primarily for industrial trucks, tractors and windmills, all of which are facing a slowdown.
Sintex's French subsidiary, Nief, caters to auto, electricals, aerospace, defense and the
medical equipment sectors. It has lowered its exposure to auto, and extended its presence
to Hungary and Tunisia. Thus its performance is expected to be less weak than
Wausaukee's.
Indian subsidiaries Zeppelin and Bright Brothers are expected to grow 15%. Zeppelin is
a beneficiary of recovery in the base telecom shelter business, and Bright has added
new clients and commissioned a Rs210m unit for 'under-the-hood' components. By the
end of 2009 it will also commission a unit to supply electrical components to Schneider,
Germany.
US$10m investment in Geiger to be written off
Sintex made an initial payment of 7m euro (US$10m) towards the acquisition of Geiger,
Germany, which has since gone into liquidation. As a result, Sintex will write off the
amount. The timing and the exact accounting treatment of the amount will be decided
shortly.
Valuation and view
We estimate Sintex to record FY09-11 EPS CAGR of 14% with RoE of 17-19%. The stock
trades at 8.6x FY10E EPS of Rs23.2 and 7x FY11E EPS of Rs31.1. We maintain Buy with
a target price of Rs232 (10x FY10E EPS).
Covering Analyst(s):
Shrinath Mithanthaya
+91 22 3982 5421
ShrinathM@MotilalOswal.com
August 3 - 5, 2009
55

5th Annual Global Investor Conference
State Bank of India
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
SBIN IN
634.9
1,845
24.6
2040 / 892
-2 / -6 / 11
YEAR
END
NET INCOME
(RS M)
PAT
(RS M)
EPS
(RS)
CONS.
EPS (RS)
CONS.
P/E (X)
P/BV
(X)
CONS.
P/ABV (X)*
CAR
(%)
ROE
(%)
ROA
(%)
3/08A 257,162
3/09A 335,639
3/10E
3/11E
67,291
91,212
106.6
143.7
159.1
187.1
141.9
178.4
211.2
255.4
12.3
9.8
8.3
6.8
2.2
1.9
1.7
1.5
2.0
1.7
1.4
1.3
13.0
14.3
12.6
12.5
16.8
17.1
16.3
16.9
1.0
1.1
1.0
1.0
372,488 101,013
457,739 118,815
* Valuation multiples are adjusted for SBI Life's value
Company Represented By:
Mr S S Ranjan, Deputy MD & CFO
Mr C Ramnath, Chief GM
Mr Sunil Damodar, GM
Key Takeaways
Worst is behind
For FY10, management believes that 20-22% loan growth is possible with a possible
upside of 24-25% (vs 23% in 1QFY10). Deposit growth may continue to outpace
loan growth (36% in 1QFY10) given rapid branch expansion and customer acquisition.
If the loan growth does not pick up in 2HFY10, then the management will moderate
its strategy of deposits growth.
Traction in CASA growth (up 23% YoY in 1QFY10, highest among PSU banks) would
continue as branch expansion and marketing efforts are yielding the desired results.
Margins are expected to gradually expand to ~2.7% by end of FY10 from 2.3% in
1QFY10 as benefit of deposit repricing continues, loan growth picks up and loan
yields firm up.
Deposits of Rs730b (~10% of total) will come up for repricing/repayment in the rest
of FY10. These deposits carry a cost of 9%+ and are expected to get re-priced
200bp lower.
Fee income growth momentum is seen sustaining at a pace higher than loan growth.
Gross NPAs would be contained at sub 3% (2.8% as of June 2009) and net NPAs at
~1.6%. The management is aiming to improve provision coverage which remains
one of the lowest at 45% as of June 2009. Any surplus profits would be deployed to
increase NPA provisions as was done in 1QFY10.
FY10 PAT is seen at ~Rs110b at least, up 21% from FY09 level.
Valuation and view
We expect SBI to report consolidated EPS of Rs211 in FY10 and Rs255 in FY11.
Consolidated BV is expected to be Rs1,316 in FY10 and Rs1,527 in FY11. Consolidated
ABV is expected to be Rs1,205 in FY10 and Rs1,391 in FY11.
Adjusted for value of SBI Life, the stock trades at 1.4x FY11E consolidated ABV and
1.3x FY11E consolidated ABV.
Over FY10-11, RoA and RoE are expected to be strong at ~1% and 16%+, respectively.
We maintain
Buy
with a target price of Rs2,190 (1.5x FY11E consolidated ABV +
Rs100 for insurance).
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009
56

5th Annual Global Investor Conference
Sterlite Industries
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
STLT IN
708.5
681
10.1
740 / 165
2 / 83 / 11
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A 247,243
3/09A 215,233
3/10E
3/11E
174,334
203,201
43,581
33,141
26,806
32,730
61.5
46.8
31.9
41.0
-23.4
-24.0
-31.8
28.4
11.1
14.6
21.3
16.6
2.2
1.9
1.6
1.5
19.5
13.0
7.5
8.9
21.2
10.1
4.8
5.7
1.6
2.0
2.7
2.2
7.6
11.8
16.7
10.3
Consolidated
Company Represented By:
Mr Sumanth Cidambi, IR
Ms Sheetal Khanduja, IR
Key Takeaways
Strong growth in metal, power
Aluminum capacity will increase at 30% CAGR to 1.1mt a year by FY13.
Zinc-lead capacity will increase at 31% CAGR to 1.1mt a year by FY11.
Power capacity will rise 53% CAGR to 5,536MW by FY12.
Copper: Proposed acquisition of Asarco
The agreed offer price is $1.87b of which US$1.1b will be paid in cash and $770m will
be paid as secured non-recourse non-interest-bearing promissory notes payable
over nine years, linked to copper-price movements.
There are opportunities to cut the price of copper production after the acquisition of
Asarco. The cost of mining is $1.05/lb and smelting costs are 30 cents/lb.
The decision is expected in mid-August. Though two suitors have submitted competing
proposals, only Sterlite's offer has the support of workers' unions and creditors.
Power: Ordering soon for 3960MW
The US$1.9b, 2,400MW project's first unit of 600MW has coal linkages and is expected
to be commissioned by December 2009. The group is working on securing interim
coal linkages for three units until captive coal mines (112m tons of reserves) start.
Sterlite will soon order SEL Talwandi Sabo 1980MW at a capex of $2.1b and VAL's
1,980MW CPP in Jharsuguda at a capex of $2b to feed the 1.25mt-a-year aluminum
smelter.
Call option: Balco in arbitration
A couple of hearings are pending for arbitration on BALCO's call option. Thereafter
the call option on Hindustan Zinc will be excercised.
Bauxite: delays foreseen
Bauxite mining in Nyamgiri hills is expected to start by the end of the year because
a few statutory permissions are still pending. The company does not envisage
resistance from locals because several of them hare employed at the alumina refinery
at Lanjigarh. But the continued protest by some people in Britain might delay the
project because the external affairs ministry is now involved in the matter.
Covering Analyst(s):
Sanjay Jain
+91 22 3982 5412
SanjayJain@MotilalOswal.com
Valuation and view
We believe a strong pipeline of growth projects in aluminum, zinc and energy and
stronger metal prices will drive earnings growth. Rich mineral resources of zinc, bauxite
and coal and cost leadership present Sterlite with a unique advantage. The company is
much ahead in project execution compared with its peers. The stock is trading at P/BV
of 1.5xFY10E. Maintain
Buy.
August 3 - 5, 2009
57

5th Annual Global Investor Conference
Sun Pharmaceuticals
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
SUNP IN
207.1
1,182
5.2
1600 / 953
-9 / -62 / -25
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/09A* 42,723
03/10E 35,394
03/10E* 41,582
03/11E
40,295
18,177
11,889
15,911
13,647
87.8
57.4
76.8
65.9
22.2
-34.6
-12.5
14.8
13.5
20.6
17.9
3.8
3.3
2.9
31.7
17.1
17.1
33.1
16.8
17.0
5.1
5.8
4.9
11.6
18.1
14.8
* Includes Para-IV upsides
Company Represented By:
Mr Uday Baldota, VP - IR
Ms Mira Desai, General Manager
Key Takeaways
Domestic business, exports key profitability drivers; No clarity on Caraco issues
Domestic formulations business to revert to normalcy from 2QFY10:
Most
of the domestic revenue fall due to excess supplies in 4QFY09 is reflected in the
27% de-growth posted in 1QFY10. We believe the domestic formulations business
is the most profitable for Sun Pharma with GPM of more than 70%.
No clarity on resolution of Caraco's US FDA problems:
There is no clarity on
the timeline for resolution of the cGMP non-compliance issues faced by Caraco. Per
the consent decree provisions, Caraco will follow the pathway identified by lawyers
from both sides based on which the US FDA may allow Caraco some relaxations.
US pipeline gaining strength:
Sun has a pipeline of 111 products pending approval
with the US FDA including a combination of low-competition, patent challenge and
normal product opportunities. Of these, approvals for 25 products filed through
Caraco are unlikely to come through until the US FDA issues are resolved. But we
note that as a strategy most of the high-margin/Para-IV products have been filed
from Sun's Indian facilities. This is likely to significantly temper the adverse impact
of the US FDA action on profits from this product pipeline. We continue to be positive
on SPIL's US pipeline, which includes many low-competition/Para-IV products, from
a long-term perspective.
Non-US formulation exports grow:
Sun's exports to about 30 emerging markets
continue growing strongly, posting 40% CAGR over FY07-09. We believe this business
is expected to continue posting double-digit growth over the next two years. The
company plans to ramp-up its presence in the European generic markets by working
on complex products filed through its Indian facilities.
No clarity on Taro acquisition:
Management indicated the Israel Supreme Court
directed Sun and Taro promoters to try for a re-negotiation of the proposed merger
agreement. However the two parties have been unable to reach any agreement.
The Supreme Court has been informed and a judgment is awaited.
Valuation and view
An expanding generic portfolio coupled with a changed product mix in favor of high-
margin exports is likely to bring in long-term benefits for Sun. Key drivers for the future
include a ramp-up in the US (from Indian facilities), expected value unlocking by leveraging
acquired companies (Able Labs & Valeant) and monetization the Para-IV pipeline along
with sustained growth momentum for domestic formulations and non-US exports. Given
the severity of the recent US FDA action on Caraco, we believe Sun Pharma's stock
price will remain muted until US FDA issues are resolved. Sun is valued at 20.6x FY10E
and 17.9x FY11E earnings (excluding Para-IV upsides which have a DCF value of Rs19/
share). Maintain
Buy.
Covering Analyst(s):
Nimish Desai
+91 22 3982 5406
NimishDesai@MotilalOswal.com
August 3 - 5, 2009
58

5th Annual Global Investor Conference
Suzlon Energy
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
SUEL IN
1497.0
97
3.0
254 / 33
-15 / 50 / -66
YEAR
END
NET SALES
(RS M)
PAT*
(RS M)
EPS*
(RS)
EPS GR.*
(%)
P/E*
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
SALES EBITDA
3/08A 136,794
3/09E
3/10E
3/11E
260,817
263,745
302,467
12,607
9,728
4,284
7,312
8.0
6.2
2.5
4.3
33.2
-22.8
-58.8
70.7
11.6
15.1
36.5
21.4
1.7
1.6
1.5
1.4
21.7
11.6
4.7
7.4
15.3
12.1
7.4
9.2
1.2
1.0
1.0
0.9
8.2
9.8
11.4
9.1
* Consolidated nos (fully diluted)
Company Represented By:
Mr Tulsi Tanti, CMD
Mr Samir Shah,
Head - Corporate Finance
Mr Nishit Dave,
AGM - Corporate Finance
Mr Jigar Kavaiya,
Sr Executive - Corporate Finance
Key Takeaways
Targeted revenue guidance calls for additional orders of 500MW by November
Suzlon maintained its revenue guidance of 2,400MW for FY10 (over 2,700MW in
FY09). While the order book of 1,500MW is sufficient to achieve 1,900-2,000MW of
revenue (assuming 700-800MW from domestic market); additional 500MW of
international orders will be needed by November to meet FY10 guidance.
The additional orders of 500MW (international) are anticipated from small-execution
cycle markets like Australia, Brazil, China and South Africa.
Suzlon's management indicated the possibility of improving order intake after
September-October 2009 due to various stimulus packages.
Realizations to be hit in FY10; multiple levers to cut costs
Wind turbine realizations are expected to fall 7-10% in FY10. This will be driven by
a decline in commodity prices and increased competition/extra capacity. But a decline
in costs will help to maintain profitability.
We understand that in the WTG business other expenses were at Rs4.2b during
1QFY10. The reported number of Rs2.9b was adjusted for Rs1.4b of forex gains.
Due to expanded manufacturing capacity, supplies of turbines is now in better control
and thus provisions for liquidated damages will be lower. Also, V-2 series have
started approaching stabilization and the V-3 WTGs have stabilized, and thus
provisions on account of availability loss will be curtailed.
Hansen: to divest full/part stake
Suzlon's management maintained that the company is in the process of divesting
full/part stake in Hansen and has already appointed investment bankers. In FY09
Suzlon divested 10% in Hansen for US$80m. This will help the company to reduce
its balance sheet leverage. Suzlon's net debt is Rs138b.
Suzlon's debt covenants entail maintaining consolidated net debt/EBITDA below 4x
and will come up for retest in September 2009. A breach will entail increased cost
of debt.
Valuation and view
We estimate consolidated EPS of Rs2.5 in FY10E (-59%) and Rs4.3 (+71%) in FY11E.
Maintain
Neutral
with a target price of Rs78/sh based on 18x FY11E earnings.
Covering Analyst(s):
Satyam Agarwal
+91 22 3982 5410
AgarwalS@MotilalOswal.com
Shridatta Bhandwaldar
+91 22 3982 5417
Shridatta.Bhandwaldar@MotilalOswal.com
August 3 - 5, 2009
59

5th Annual Global Investor Conference
Tata Consultancy Services
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
TCS IN
1957.2
530
21.8
545 / 208
26 / 45 / 21
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A 228,614
3/09A 278,129
3/10E
3/11E
285,408
304,783
50,191
51,369
58,250
60,754
25.5
26.2
29.8
31.0
20.8
3.0
13.4
4.3
20.3
19.7
17.4
16.7
8.1
6.4
4.9
4.1
46.5
36.4
32.1
26.7
46.2
44.2
36.6
30.3
4.3
3.5
3.4
3.0
16.5
13.7
12.5
11.7
Company Represented By:
Mr Vish Iyer,
CFO - Global Operations
Mr Kedar Shirali,
Director - IR
Key Takeaways
1QFY10 performance should not be extrapolated
In US$ terms, TCS' revenues had grown 3.3% QoQ in 1QFY10.
While the growth was not due to anything extraordinary, the management believes
that it should not be extrapolated, as:
Greater offshoring enabled clients to increase volumes
Some 4QFY09 ramp-ups spilled over to 1QFY10, resulting in sequential growth
Some M&A related integration work increased quarterly billing
Discretionary spend in BFSI is necessary to reach earlier growth rates.
Pricing concerns abated, previous guidance stays
While pricing discussions have largely been concluded, individual discussions are
still on.
Pricing guidance of single-digit decline in FY10 stays.
Employee additions on track, could spill over to FY11
TCS has made 24,885 offers for FY10 and expects the additions to flow through
from 2QFY10.
The company expects to add ~1,000 employees in 2QFY10 and the remaining in
3&4QFY10 depending on volume growth.
The company currently has capacity to train ~7,000 employees per quarter.
In a situation where volume growth turns out to be muted, TCS could defer its
joinees to FY11.
Margin maintenance possible, levers intact
Despite impressive offshoring in the last few quarters, the management has indicated
that there is further scope to offshore effort.
The company believes that pricing will not deteriorate further and does not see
margin risk on the pricing front.
Cost controls, which helped margins in 1QFY10, have further scope for rationalization.
This provides comfort on sustainability of margins.
Other highlights
Hedges at the end of 1QFY10
US$457m of revenue hedges with limited upside after Rs41/US$
US$226m for FY10 and the US$230m for FY11/12
Valuation and view
We expect a revival in revenue growth to 11% in FY11 after a 1% dip in FY10. EBITDA
margin should expand by 100bp in FY10 on better cost management and greater
offshoring. TCS trades at 17.4x FY10E and 16.7x FY11E EPS. Maintain
Neutral.
Covering Analyst(s):
Ashwin Mehta
+91 22 3982 5409
Ashwin.Mehta@MotilalOswal.com
Vihang Naik
+91 22 3982 5436
Vihang.Naik@MotilalOswal.com
August 3 - 5, 2009
60

5th Annual Global Investor Conference
Tata Steel
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
TATA IN
822.0
473
8.2
695 / 138
6 / 85 / -36
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A 1,315,359
3/09A 1,473,130
3/10E
3/11E
1,021,186
1,117,851
77,404
90,610
39,079
70,864
87.2
102.1
44.0
79.9
24.2
17.1
-56.9
81.3
5.4
4.6
10.7
5.9
2.6
3.2
2.7
2.3
48.4
68.2
25.2
38.0
15.1
14.6
9.3
12.5
0.6
0.6
0.9
0.8
4.6
4.9
7.1
5.6
Consolidated
Company Represented By:
Mr Praveen Sood, IR
Ms Debashree Sarkar, IR
Key Takeaways
20% volume growth in FY10 to drive India operations
Volume growth of 20% YoY to 6.36m tons in FY10 will drive the company's India
operations.
Margins will expand due to production cost cuts of US$30/ton because of lower
coking-coal prices in subsequent quarters.
Steel-making capacity will expand to 10mt a year by March 2011. The facilities will
include an 'I' blast furnace, LD shop, a thin slab caster, 2.4mt a year rolling mill,
1.4mt a year new coke ovens, a 6mt a year pelletization plant and augmenting of
existing mines.
Higher demand outlook, cost cuts in Corus to drive earnings
Demand for Corus' steel products began to improve in July. The demand recovery
will be more visible in the next couple of months.
Corus has undertaken cost cutting initiatives-1,200 jobs were cut, reducing manpower
to 40,700 in March 2009. The company will cut 8,000 more jobs by March 2010.
Fixed-cost cuts of 763m pounds are expected in FY10, giving a non-recurring amount
of only 10-15%.
The fit-for-future program is expected to yield 300-350m pounds of permanent
annual savings.
Corus' pension fund has a corpus of 9b pounds. The fund has been significantly de-
risked and had a surplus of 600m pounds in March 2009. The fund reduced its
exposure to equity to 32% from 50%.
The debt covenant reset package requires Tata Steel, the parent company to inject
425m pounds into Tata Steel Europe in a phased manner, of which about 200m
pounds will be used to prepay debt and de-leverage the European balance sheet.
Raw material self sufficiency to rise from 25% to 50%
Tata steel has 35% stake in a JV project with Riversdale. One tenement has inferred
reserves of 4b tons of coal in Mozambique.
Another JV with New Millennium Capital in Canada, has 100m tons of iron ore. Tata
Steel has the option to acquire 80% in a direct shipping ore (DSO) project in Canada
and a South African iron ore mining project.
Valuation and view
We believe the earnings outlook for the India operations is robust and demand recovery
in Europe may turn positive for Corus. But Corus will still have to struggle with issues
like Teesside because complete closure is not an easy option and there will be a longer
wait for its break even. Investments in iron-ore mines and coal assets abroad will
increase raw material security and improve margins in the coming years.
Neutral.
Covering Analyst(s):
Sanjay Jain
+91 22 3982 5412
SanjayJain@MotilalOswal.com
August 3 - 5, 2009
61

5th Annual Global Investor Conference
Time Technoplast
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
TIME IN
209.3
44
0.2
79 / 18
6 / 49 / -46
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
(RS)
EPS
YOY (%)
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
SALES EBITDA
03/06A
03/07A
03/08A
03/09A
2,624
3,987
6,816
7,898
245
403
737
690
3.1
2.4
3.5
3.3
-24.0
48.5
-6.3
6.1
0.9
18.3
23.9
31.2
17.7
14.7
18.9
24.7
18.8
0.9
4.4
Company Represented By:
Mr Anil Jain, MD
Key Takeaways
FY10 guidance
Time Technoplast has guided for FY10 topline growth of 20-25% and 20% EBITDA
margin.
Focus on industrial packaging, infrastructure products
Time Technoplast (TTL) is present in five verticals (% of FY09 revenue in brackets):
industrial packaging, mainly drums and conipails (60% of FY09 revenue), auto components
(8% of FY09 revenue), lifestyle products including plastic furniture and mats (9% of
FY09 revenue), healthcare products, mainly disposable syringes (3% of FY09 revenue)
and infrastructure including VRLA batteries, and construction safety nets (20% of FY09
revenue). TTL plans to focus on industrial packaging and infrastructure.
For industrial packaging TTL plans to add two new units, one each in Kolkata, to be
commissioned in FY10, and Ahmedabad, to be commissioned in FY11. It is also setting
up a unit in Tianjin, China with an initial investment of $10m, to be commissioned by the
end of FY10.
In infrastructure TTL is expanding its battery capacity. It is also adding two new products
such as HDPE pipes and pre-fabricated shelters to its product portfolio. A Rs250m HDPE
pipe unit was commissioned in Silvassa in 4QFY09 and a Rs300m pre-fabricated shelter
unit in Silvassa is due for commissioning in 2QFY10.
Plastic-based material handling systems JV:
In June 2009 TTL formed a 50.1:49.9
JV with Dutch group Schoeller Arca Systems (SAS) for plastic-based material handling
solutions and systems (large foldable containers, pallets and crates). The end users are
sectors like FMCG, retail, processed food, pharmaceuticals and consumer durables.
The initial project cost is 10m euro. To begin with the JV will focus on marketing and
source its products from TTL.
Futuristic products:
Several futuristic products a re in the pipeline. These include:
(1) LPG and CNG cylinders based on composite material (2) Sound barriers for flyovers,
elevated roads and rail networks and (3) Fuel cells that generate electricity from fuels
such as hydrogen, natural gas and methanol.
Rs1b FY10 capex; funding from internal accruals
TTL's planned FY10 capex is Rs1b, to bwe used mainly for packaging (Rs440m), pre-
fabricated shelters (Rs150m) and batteries (Rs100m). In March 2009, TTL had Rs450m
in cash. This as well as internal accruals will fund the capex. TTL plans to repay some
of its Rs3b debt.
Covering Analyst(s):
Shrinath Mithanthaya
+91 22 3982 5421
ShrinathM@MotilalOswal.com
August 3 - 5, 2009
62

5th Annual Global Investor Conference
Titan Industries
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
TTAN IN
42.3
1,204
1.1
1,375 / 665
-16 / -21 / -11
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
03/08A 29,937
03/09A 38,034
03/10E 43,553
03/11E
50,904
1,483
2,056
2,005
2,556
33.4
46.3
45.2
57.6
25.5
38.6
-2.5
27.5
36.1
26.0
26.7
20.9
11.7
9.3
7.1
5.6
34.0
37.5
27.8
28.1
30.7
34.2
32.3
33.9
1.8
1.4
1.2
1.0
21.0
16.8
15.1
12.2
Company Represented By:
Mr Bhaskar Bhat,
Managing Director
Mr K F Kapadia,
Executive VP Finance
Mr S Ravi Kant, COO, Eyewear
Key Takeaways
Watch volumes rebound after Sonata restocking
Watch volume growth is likely to be fairly robust, driven by increasing penetration,
faster replacement and dual ownership.
Watch sales have been impacted in Mumbai, Pune and Ahmadabad but demand has
been strong in Tier-II and Tier-III cities.
Watch volumes fell 9% in FY09 largely led by a decline in the Sonata brand due to
de-stocking. De-stocking was required because of excess inventory collected by the
trade during a high inflationary environment.
Tax benefits from the Baddi unit fell from 100% to 30%. Next year the Deharadun
unit will also move to a 30% tax rebate area from a tax free area.
High gold prices, consumer sentiment put jewelry business under pressure
Jewelry volumes fell 15% in 1QFY10 as high gold prices impacted demands. Besides,
higher overheads due to the commissioning of new stores impacted margins.
The company moved to the FIFO method of inventory valuation, which overstated
profits by Rs300m in 1QFY10. The management believes this method better reflects
profitability as hedge accounting will become compulsory from next year.
The company is moving to large-format stores in metros based on the hub-and-
spoke model. This will help the company cater to the large marriage jewelry market
where Tanishq has a low market share.
Volume shrinkage is declining, demand expected to improve from the festival season.
Eyewear offers potential; first-mover advantage to pay
Titan increased the number of its Titan Eye+ stores to 77, including 21 company-
operated stores. It has 30% of its own brands and 15 more brands. The company
foresees big potential in this segment with gross margins in this business equal to
the watch business. The number of stores is expected to rise to 225-250 with
expected breakeven in three years.
Titan is setting up a lens manufacturing facility (Rs100m) to cut dependence on
outsourcing. This will enable quality control and backward integration.
Slowdown hits Precision Engineering
The division has felt the impact of the global slowdown, especially in the aerospace and
automotive sectors, to which it has direct exposure. The company is exploring divestment
and a tie-up with other players for part of the business in the next 12-18 months.
Valuation and view
We estimate 13% EPS CAGR over FY09-FY11. The stock trades at 26.7xFY10E EPS of
Rs45.3 and 20.9xFY11E EPS of Rs57.6. Maintain
Neutral.
Covering Analyst(s):
Amnish Aggarwal
+91 22 3982 5404
AmnishAggarwal@MotilalOswal.com
Amit Purohit
+91 22 3982 5418
AmitPurohit@MotilalOswal.com
August 3 - 5, 2009
63

5th Annual Global Investor Conference
Union Bank of India
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
UNBK IN
505.1
230
2.4
266 / 113
-15 / -18 / 48
YEAR
END
NET INCOME
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
CAR
(%)
ROAE
(%)
ROAA
(%)
P/ABV
(X)
(RS) GROWTH (%)
3/08A
3/09A
3/10E
3/11E
41,733
52,961
59,050
71,282
13,870
17,266
20,160
24,249
27.5
34.2
39.9
48.0
64.1
24.5
16.8
20.3
8.4
6.7
5.8
4.8
2.1
1.6
1.3
1.1
12.5
13.3
12.6
12.1
26.8
27.2
25.6
25.1
1.22
1.21
1.15
1.18
2.1
1.7
1.4
1.2
Company Represented By:
Mr M V Nair, CMD
Mr N S Mehta, CFO
Key Takeaways
Decline in cost of deposits to drive margin expansion
Management expects margin to reach ~3% in FY10 (2.3% in 1QFY10) on the back
of:1) expected higher loan offtake, 2) amount parked in liquid MF (Rs45b on an
average during 1QFY10) getting used for loan growth (yield on this funds is ~5.5%
vs loan yield of 10.3%), and 3) repayment/re-pricing of bulk deposits
In 1QFY10, fees grew 42% YoY to Rs2.7b led by higher processing fees. The
management expects strong traction in fee income to continue.
Loan book is expected to grow 25% YoY led by agriculture, SME and retail. Union
Bank already has ~Rs110b fund-based sanctions in hand.
Deposit growth is expected to be 23% and focus will continue to grow core retail
term deposits and improve share of CASA ratio. CASA ratio is targeted to be 35%
by FY12.
The management expects cost of term deposits to decline ~85bp by December
2009. Large part of the high cost deposits is likely to mature in 2Q and 3QFY10.
Union Bank has ~Rs490b of corporate loan portfolio with 337 accounts having
exposure above Rs500m. Of these, 236 accounts with exposure of Rs285b are
already rated, and further rating of corporates is likely to improve CAR.
The bank has licenses in hand for 500 branches which it expects to open in FY10.
This will help to improve core retail deposits growth.
Total restructuring based on borrower-wise comes to Rs55b (5.7% of the loan
book). The management guided for maximum slippage ratio of 1.5% and GNPA
ratio of 1.75% by the end of FY10.
Valuation and view
We expect the bank to report EPS of Rs40 in FY10 and Rs48 in FY11.
BV is expected to be Rs172 in FY10 and Rs211 in FY11. We expect RoA to sustain at
1.2% and RoE at 25%+.
UNBK trades at 4.8x FY11E EPS and 1.1x FY11E BV. We maintain
Buy
with a target
price of Rs275 (1.3x FY11E BV).
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009
64

5th Annual Global Investor Conference
Unitech
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
UT IN
2385.6
93
4.7
192 / 22
9 / 159 / -55
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
(RS)
EPS
GROWTH (%)
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
SALES EBITDA
3/08A
3/09A
3/10E
3/11E
41,152
28,945
33,799
30,224
16,692
11,968
10,794
9,986
10.2
6.0
4.5
4.2
-36.4
-41.7
-24.2
-7.5
9.1
15.6
20.6
22.2
4.2
2.9
2.0
1.9
46.1
18.7
9.9
8.4
21.5
13.2
10.4
8.1
7.1
10.6
7.8
8.5
13.3
19.2
15.4
18.0
Company Represented By:
Mr R Nagaraju,
VP-Corporate Planning
Key Takeaways
Fund raising combats solvency risk
Unitech has recapitalized its balance sheet in the last few months by (1) successfully
raising US$900m equity through two QIP issues, and (2) asset sale of ~Rs10b. This
has significantly lowered solvency risk for the company. Post QIP II, Unitech's net
debt has reduced to Rs70b during 1QFY10 while net debt stands at Rs50b; net debt
equity is comfortable at 0.5x.
Core business witnessed strong traction
Since March 2009, the company has launched ~17msf of residential projects in
Gurgaon, Chennai, Mohali, Kolkata and Mumbai and sold ~6.9msf (~4msf in NCR,
~1.4msf in Chennai and ~1.4msf in other cities).
This is in line with Unitech's targeted launch plan of ~30msf across 15 cities and
sales of ~20msf in FY10. It is likely to commence construction on ~6.9msf in FY10,
which are likely to be delivered over the next 2-3 years.
Aggressive launch plans for the affordable housing vertical
Unitech has aggressive plans to launch projects in the affordable housing segment,
comprising standardized units of 500-1,000sf each, priced at Rs1m-3m/unit under
the brand name, Unihomes. Unitech plans to launch 8-9msf of affordable housing
projects spread across eight cities in FY10.
It has already launched its first affordable housing project in Noida during 1QFY10
and is likely to launch its next affordable housing project in Chennai.
Comfortable cash flow position
Unitech has a comfortable cash flow position in FY10; it estimates ~Rs43b of cash
inflows including: (i) 35% of sales value of 20msf at an average rate of Rs3,000/sf
- Rs21b, (ii) inflows of Rs3.5b from old projects, and (iii) asset sales of Rs10.4b. As
against this, it expects cash outflows of Rs42.5b in FY10, including: (i) construction
cost of ~20msf of Rs13b, with average cost of Rs1,300/sf, 25% of the cost to be
incurred in FY10, (ii) additional construction cost of Rs6.5b for old projects and
clubs, (iii) debt repayment of Rs17b, and (iv) interest cost of Rs8b.
Valuation and view
Unitech has managed to recapitalize its balance sheet by: (1) successfully raising
US$900m equity through two QIP issues, and (2) asset sale of ~Rs10b. This has
significantly lowered solvency risk for the company and improved financial outlook. The
stock trades at 2.1x FY11E adjusted BV of Rs45/share and at 14% premium to FY11E
NAV of Rs83/share. While the macro outlook has turned positive for Unitech, we believe
the stock is fairly valued. Maintain
Neutral.
Covering Analyst(s):
Siddharth Bothra
+91 22 3982 5407
SBothra@MotilalOswal.com
Mansi Trivedi
+91 22 3982 5430
Mansi.Trivedi@MotilalOswal.com
August 3 - 5, 2009
65

5th Annual Global Investor Conference
Vardhman Textiles
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
VTEX IN
57.8
151
0.2
160 / 39
18 / 85 / 52
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A
3/09A
3/10E
3/11E
22,947
24,536
31,816
35,500
1,225
633
1,184
1,665
21.2
21.4
20.5
28.8
-28.6
1.0
-4.3
40.6
7.1
7.1
7.4
5.2
0.7
0.7
0.6
0.6
10.8
10.1
9.0
11.5
6.2
4.4
6.3
7.4
1.4
1.2
1.1
0.9
9.0
8.1
7.6
6.1
Company Represented By:
Mr Sachit Jain, Executive Director
Ms Jasmeet Gill, Sr Manager
Corp Finance
Key Takeaways
Global textile demand to revive in 9-12 months
The management expects textile demand to revive in nine to 12 months. It also
expects the revival to be very strong as global capacity additions have ceased.
The cost of production in China is rising due to higher labor costs. This is likely to
force Chinese manufacturers to raise product prices. India is likely to benefit from
such a situation.
Capex benefits to be visible from FY11
VTL is on track to complete its Rs25b capacity expansion in FY10, which will increase
its textile capacity to 8.37m spindles, processed fabric capacity of 90m meters and
sewing thread capacity of 33mtd. VTL expects full utilization of its plant in FY11.
Entry into new areas positive
Vardhman entered the garments sector with a joint venture with Nisshinbo Textile
Inc. to make shirts in Ludhiana, Punjab. Vardhman holds 51% in the venture. The
shirts will be sold in India and exported to the US, Europe & Japan. Production is
seen to start from April 2010 with 1.20m units of which 300,000 will be sold in
India.
VTL's 51:49 JV, called Vardhman Yarns and Thread, with A&E, Inc. US, to make and
distribute A&E-branded sewing threads, is growing strongly and the management
is open to strategic tie-ups or financial investors in the venture.
Valuation and view
Although near-term outlook on the stock is negative because of multiple margin pressures,
we are bullish on it over the medium to long term due to healthy growth opportunities in
the upstream textile sector. The stock trades at 7.4x FY10E EPS of Rs20.5 and 5.2x
FY11E EPS of Rs28.8.
Buy.
Covering Analyst(s):
Siddharth Bothra
+91 22 3982 5407
SBothra@MotilalOswal.com
August 3 - 5, 2009
66

5th Annual Global Investor Conference
Voltas
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
VOLT IN
330.6
145
1.0
150 / 31
9 / 192 / 2
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
(RS)
EPS
YoY (%)
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
SALES EBITDA
03/06A
03/07A
03/08A
03/09A
19,544
25,267
32,029
43,259
646
1,110
1,760
2,252
2.0
3.4
5.3
6.8
61.4
71.8
58.5
28.0
21.3
6.1
29.9
58.0
41.5
36.8
23.7
25.0
39.9
32.0
1.0
15.4
Company Represented By:
Mr M M Miyajiwala,
EVP - Finance
Mr B N Garudachar,
GM, Corporate Communications
Key Takeaways
Revenue CAGR of 20-25% for next 2-3 years
Voltas has indicated an improved outlook in the domestic and international markets.
It is targeting revenue and PAT CAGR of 20-25% over the next 2-3 years, and no
RoCE dilution is expected to achieve the growth.
EMP revenue to grow 30-35%; improved demand for engineering products
In 1QFY10 Voltas' global business revenue grew 90% YoY against 20% YoY in the domestic
Electromechanical Projects (EMP) division. EMP order book is Rs48b, which provides
revenue visibility for the next 12-15 months.
On the international side (Rs36b of order book) markets like Qatar, Abu Dhabi and
Saudi Arabia are improving. New markets like Singapore are opening up for
entertainment projects (casinos and theme parks).
EMP revenue is expected to grow 30-35% with stable profitability and RoCE.
Engineering Products division:
In the Engineering Products division meaningful
improvement in enquiries is absent. While textile machinery continues to be weak,
material handling equipment and mining/construction equipment is expected to
improve in 2HFY10. This will reflect in actual performance only from 1HFY11. Managing
FY10 EBITDA margin will be a challenge for this division.
Unitary Cooling Products:
Revenue improved substantially in July compared with
a 3.5% YoY increase in 1QFY10. The management sees stable margins and
improved volumes to 8-10% YoY in FY10 for the segment. Organized retail contributes
25-30% of room AC sales, and Voltas is improving its performance in these formats
as well.
Other takeaways
Competition is increasing in the Middle East due to a slowdown in Dubai and the
Saudi Arabian markets.
Voltas will spend Rs400-500m on capex, and Rs200-250m on stake acquisition in
Rohini Electricals. It will use Rs2-3b to fund possible acquisition in the water segment.
Voltas plans to gain pre-qualifications in areas such as oil and gas (refineries), and
chemical water treatment.
Valuation and view
The stock trades at P/E of 21x FY09 EPS of Rs28. We have
no rating
on the stock.
Covering Analyst(s):
Shrinath Mithanthaya
+91 22 3982 5421
ShrinathM@MotilalOswal.com
August 3 - 5, 2009
67

5th Annual Global Investor Conference
Wipro
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
WPRO IN
1459.1
498
15.3
511 / 180
21 / 52 / 5
YEAR
END
NET SALES
(RS M)
PAT*
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A 197,428
3/09A 254,564
3/10E
3/11E
263,304
285,193
32,240
34,415
40,357
41,802
22.2
23.6
27.7
28.7
9.8
6.7
17.1
3.6
22.5
21.1
18.0
17.4
5.6
4.8
3.9
3.3
27.9
24.6
23.9
20.4
23.1
21.6
20.3
18.9
3.6
2.8
2.6
2.3
18.3
14.1
12.4
11.3
* Citi Technology Services is fully consolidated in 4QFY09
Company Represented By:
Mr Girish Paranjpe, Joint CEO
Mr Rajendra Shreemal,
VP & Corporate Treasurer
Key Takeaways
Signs of stability visible
Demand in IT services is showing signs of stability. However, recovery is likely to be
slow and steady.
Budgets have been curtailed, as client risk appetite remains low.
Wipro expects strong growth in cost rationalizing service lines like BPO helped by
(1) lower level of penetration compared to IT services, and (2) Wipro's globalized
offering with BPO centers in Philippines and Eastern Europe.
Emerging markets catching up, dormant sectors starting to show traction
Emerging market IT spends are growing and catching up with developed markets
High momentum seen in India, led by sectors like telecom, infrastructure, BFSI and
government spending
Even in developed markets, sectors like utilities and healthcare, which were less
amenable to outsourcing earlier, are now growing.
Other sectors are likely to resume IT spend in 2-3 quarters due to the following
factors: (1) regulation (change in credit card rules, lending norms, etc), (2)
consolidation with other companies needing IT integration, and (3) change in business
environment entailing companies to build and develop new products and services.
Wipro's two pronged strategy
Wipro is following a two-pronged strategy: (1) restructure and streamline internal
operations to make processes lean, and (2) prepare for the next leg of growth.
The second strategy includes several aspects such as: building consulting capability,
hiring in global centers for local delivery to clients, and investing in newer technologies
like cloud computing and platform based services.
Investment in non-linearity
Wipro is also investing in non-linearity. This is being done in the following four
quadrants:
1. Automation and process excellence - shared tools
2. Solutions and platforms (e.g. acquired company in US, which has a solution for
loan origination)
3. More value-added services (solutions)
4. Sub-contracting (in the early stage).
Valuation and view
We expect Wipro to post US$ revenue growth of 11.2% in FY11 after a 1.4% dip in
FY10. EBIT margins should improve by 30bp over the period. We expect Wipro to clock
EPS CAGR of 10% over FY09-11. The stock trades at 18x FY10E and 17.4x FY11E EPS.
Maintain
Neutral.
Covering Analyst(s):
Ashwin Mehta
+91 22 3982 5409
Ashwin.Mehta@MotilalOswal.com
Vihang Naik
+91 22 3982 5436
Vihang.Naik@MotilalOswal.com
August 3 - 5, 2009
68

5th Annual Global Investor Conference
Yes Bank
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
YES IN
297
154
1.0
166 / 41
2 / 89 / 5
YEAR
END
NET INCOME
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
CAR
(%)
ROAE
(%)
ROAA
(%)
P/ABV
(X)
(RS) GROWTH (%)
3/06A
3/07A
3/08A
3/09E
1,826
3,659
6,912
9,462
527
944
2,000
3,039
2.0
3.4
6.8
10.2
n.a.
72.7
100.7
51.3
78.8
45.6
22.7
15.0
7.3
5.5
3.5
2.8
16.4
13.6
13.6
16.6
13.3
13.9
19.0
20.6
1.9
1.2
1.4
1.6
7.3
5.5
3.5
2.9
Company Represented By:
Mr Rajat Monga, CFO
Mr Jaideep Iyer, Deputy CFO
Key Takeaways
Superior returns ratios to be maintained
In FY10-11, Yes Bank expects to maintain superior return ratios (RoA 1.5%+ and RoE
20%+) backed by higher loan growth (expected to be 2x of industry growth rates),
improved margins (bulk deposits re-pricing and improvement in CASA ratio, targeting
CASA ratio of 25% by FY12 and 40% in FY15), strong growth in fee income due to
higher advisory, forex and third party distribution income and stable credit cost.
Falling cost of funds to be used for margin improvement
With 123 branches and expected additions of ~130 branches in next 2 years (14 branch
licences in hand), the focus in FY10-11 is to improve retail deposit franchise and accelerate
customer acquisition. Yes Bank plans to use the opportunity of significant fall in bulk
deposits rates to garner higher retail term deposits by paying competitive rates compared
to peers. Benefit of bulk deposits is evident from falling cost of funds (8.8% in FY09 to
8.1% in 1QFY10). The management mentioned that with every 100bp improvement in
CASA ratio, NIMs will improve 4-5bps.
Non-interest income contribution in total income to remain healthy
Healthy signs of revival have been noticed in income from financial markets, financial
advisory, and third party distribution. Forex income is likely to show strong traction and
contribution from debt markets will also remain strong in FY10. Yes Bank already has
requisite infrastructure to grow its income from third party distribution (123 branches
and dedicated sale staff).
Asset quality no concerns
Yes Bank maintains that asset quality is likely to remain strong. In 1QFY10, GNPA ratio
declined to 0.48% vs 0.68% in FY09 and NNPA ratio declined to 0.24% vs 0.33% in
FY09. The bank restructured Rs614m (~0.48% of loans) worth of loans during the
quarter and total restructured book stands at Rs1.2b (0.94% of the loan book). The
outlook on asset quality has improved significantly and NPAs would remain manageable.
The management on a prudent basis is planning to increase provision coverage ratio by
accelerating provisions. NNPA ratio is not expected to go above 0.6%.
Comfortable on CAR in near term; will dilute at appropriate time
CAR of the bank stood at 17.6%; Tier I is 10.3%. While capital is not a constraint for
growth in the near term, the board decision of enabling capital raising committee to
raise US$250m is premised on longer term fund requirement.
Valuation and view
Yes Bank trades at 15x FY09 EPS of Rs10.2 and 2.8x FY09 BV of Rs55. We have no rating
on the stock.
Covering Analyst(s):
Ajinkya Dhavale
+91 22 3982 5426
AjinkyaDhavale@MotilalOswal.com
Alpesh Mehta
+91 22 3982 5415
Alpesh.Mehta@MotilalOswal.com
August 3 - 5, 2009
69

5th Annual Global Investor Conference
Zee Entertainment
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
Z IN
433.6
200
1.8
255 / 88
4 / 17 / -10
YEAR
END
NET SALES
(RS M)
PAT
(RS M)
EPS
EPS
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
(RS) GROWTH (%)
SALES EBITDA
3/08A
3/09A
3/10E
3/11E
18,354
21,730
22,106
24,850
3,850
3,995
3,981
4,938
8.9
9.2
9.2
11.4
58.7
3.8
-0.3
24.1
22.5
21.7
21.8
17.6
3.0
2.7
2.5
2.3
13.5
12.6
11.6
13.4
19.6
17.3
16.9
20.4
4.7
4.1
3.8
3.3
15.8
16.6
14.8
11.6
Company Represented By:
Mr Punit Goenka, CEO
Mr Atul Das, Executive VP,
Corporate Strategy
Mr Harsh Deep Chhabra,
Sr Manager IR
Key Takeaways
Television growing faster than print media
Television is growing faster than print media, as advertisers focus on low cost
verticals. Historically, TV advertising growth has been 2x growth of GDP growth.
Television industry is expected to grow from Rs211b in 2007 to Rs341b by 2011E.
55 new channels have been launched in past four years (four in Hindi GEC). Though
this has put pressure on incumbents, it has also expanded Hindi GEC GRPs from 889
in September-October 2007 to 1,150 in June-July 2009.
Signs of improvement in advertising; Zee to be a key beneficiary
Ad industry is showing some signs of improvement on a sequential basis. With
mega sports events behind, Mr Goenka expects ad growth to improve in 2HFY10.
Zee's content strategy in Hindi GEC has played out well. In fiction programming, it
moved away from "kitchen politics" based soaps to issue-based serials (Saat Phere
and Betiyaan) and in non-fiction, from foreign high-cost formats to homebred formats
(Sa Re Ga Ma, Dance India Dance, etc).
Mr Goenka indicated that Zee TV is well placed to take advantage of any improvement
in the advertising scenario due to: (1) consistent improvement in GRPs despite big
ticket events like IPL and T20 World Cup, (2) highest share (23 shows) in top-50
Hindi GEC, and (3) strong network of Zee group (17% network market share).
Share of subscription revenue to increase to 65-70% in three years
Digitization is now a reality and would be driven by DTH subscription growth. Mr
Goenka expects DTH subscriber to grow from the current 14m to 20m by FY10 and
35m in next 3 years. Zee has guided for DTH revenue growth of 45-50% in FY10.
Over the next three years, the company indicated that its subscription revenue
could reach 65-70% of total revenue, driven by digitization of distribution.
Focus on profitability and shareholder return
Zee's strategy with focus on low-cost content v/s movies or high cost non-fiction
content enables cost control. Its new programs are at lower cost than the ones
getting replaced, which has also resulted in savings in programming cost.
Management indicated that from here on no further cost savings are likely, as rising
competition will force Zee to increase its spend on programming.
Zee would continue to focus on profitability and improving shareholder return.
Valuation and view
We expect Zee Entertainment to report PAT of Rs3.9b in FY10 (down 0.3% YoY) and
Rs4.9b in FY11 (up 24% YoY). The stock trades at a P/E of 21.8x FY10E and 17.6x
FY11E. Maintain
Neutral.
Covering Analyst(s):
Amnish Aggarwal
+91 22 3982 5404
AmnishAggarwal@MotilalOswal.com
Amit Purohit
+91 22 3982 5418
AmitPurohit@MotilalOswal.com
August 3 - 5, 2009
70

5th Annual Global Investor Conference
Zee News
Bloomberg
Equity Shares (m)
CMP (Rs)
Mcap (US$ b)
52 W Range
1, 6, 12 Rel Per
ZEEN IN
239.8
43
0.2
52 / 24
-3 / -32 / -7
03/09A
5,221
446
1.9
13
23.1
4.0
17.7
20.1
2.2
13.7
YEAR
END
NET SALES
(RS M)
PAT *
(RS M)
EPS
(RS)
EPS
GR. (%)
P/E
(X)
P/BV
(X)
ROE
(%)
ROCE
(%)
EV/
EV/
SALES EBITDA
03/07A
03/08A
2,405
3,671
79
395
0.3
1.6
77
401
130.3
26.0
5.5
4.8
3.4
18.8
8.6
28.8
4.1
2.7
123.6
14.3
Company Represented By:
Mr Barun Das, CEO
Key Takeaways
Regional broadcasting a huge opportunity; number of players to increase
but rule of three to apply
Regional broadcasting offers a huge opportunity due to (1) advertisers focusing on
regional/rural markets for incremental sales, and (2) limited options with viewers,
who are open to change/new channels.
The segment is likely to witness entry of several players and digitization would also
be the key factor attracting new players. However, management indicated that rule
of three will prevail in the broadcasting space with top-3 players getting significant
share of the regional advertising market.
Regional advertising market would continue to grow faster than national advertising,
as advertising/viewership ratio for regional genres is less than Hindi GEC.
Zee News plans to strengthen its position in existing markets and increase its
offerings in both regional and new genres; focus on profitability
Zee News has increased its presence across the regional markets. The company
plans to strengthen is position in the existing market and aims to remain amongst
the top-3 players in each of the regional markets.
Its long term strategy is to launch regional channels in the news genre. Management
believes that although the regional news genre is currently a small market, it offers
huge potential, as it has strong viewership.
Zee News would continue to focus on profitability even when it plans to increase its
network, through better cost management. The company targets to achieve breakeven
in regional GEC in 36-48 months and in the news genre in 24-36 months.
Share of subscription revenue to increase to 40% in three years; DTH to be
the key growth driver
Management targets to increase its share of subscription revenue from current
19% to 40% over the next three years, leveraging the strength of Zee Group's
distribution network.
The strong growth in subscription revenue would be driven by digitization.
Valuation and view
For FY09, Zee News posted revenue of Rs5.2b and PAT of Rs446m. The stock quotes at
23x FY09E EPS of Rs1.9.
Not Rated.
Covering Analyst(s):
Amnish Aggarwal
+91 22 3982 5404
AmnishAggarwal@MotilalOswal.com
Amit Purohit
+91 22 3982 5418
AmitPurohit@MotilalOswal.com
August 3 - 5, 2009
71

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