21 July 2017

Motilal Oswal values your support in the

Asiamoney Brokers Poll 2017 for India

Research, Sales and Trading team.

We

request your ballot.

Today’s top research idea

Kotak Mahindra Bank: Strong all-around performance; Merger

synergies yielding results

v

KMB's strong operating performance was marked by robust performance in

both standalone bank and its other businesses.

v

Strong presence across geographies/products and healthy capitalization (T1 of

~19%) place the bank in a sweet spot to capitalize on growth opportunities

and gain market share.

v

KMB’s premium multiples are likely to sustain, considering strong growth and

operating leverage available across businesses, and a clean loan portfolio.

v

Comfort on asset quality remains the highest, with no SDR/5:25, negligible

SMA2 (21bp) and OSRL (6bp). At our SOTP of INR1,153, KMB will trade at 4.2x

2019E consol. BV. Buy.

Market snapshot

Equities - India

Close

Chg .%

Sensex

31,904

-0.2

Nifty-50

9,873

-0.3

Nifty-M 100

18,291

-0.3

Equities-Global

Close

Chg .%

S&P 500

2,473

0.0

Nasdaq

6,390

0.1

FTSE 100

7,488

0.8

DAX

12,447

0.0

Hang Seng

10,847

-0.1

Nikkei 225

20,145

0.6

Commodities

Close

Chg .%

Brent (US$/Bbl)

49

-0.9

Gold ($/OZ)

1,237

-0.2

Cu (US$/MT)

5,925

-0.1

Almn (US$/MT)

1,892

-0.1

Currency

Close

Chg .%

USD/INR

64.4

0.2

USD/EUR

1.2

-0.2

USD/JPY

112.4

0.3

YIELD (%)

Close

1MChg

10 Yrs G-Sec

6.5

0.0

10 Yrs AAA Corp

7.5

0.0

Flows (USD b)

20-Jul

MTD

FIIs

0.0

0.2

DIIs

0.0

0.3

Volumes (INRb)

20-Jul

MTD*

Cash

297

282

F&O

9,907

5,485

Note: YTD is calendar year, *Avg

YTD.%

19.8

20.6

27.5

YTD.%

10.5

18.7

4.8

8.4

15.5

5.4

YTD.%

-12.1

6.7

7.3

11.0

YTD.%

-5.0

9.1

-4.1

YTDchg

-0.1

-0.1

YTD

8.7

3.6

YTD*

285

4,969

Research covered

Cos/Sector

Mahindra & Mahindra

Reliance Inds.

Kotak Mah. Bank

Wipro

Hind.Zinc

Bajaj Auto

ABB

Alembic Pharma

D B Corp

Zensar Tech.

NIIT Tech.

KPIT Tech

Results Expectation

Key Highlights

Getting future ready; UV segment needs push; tractor segment healthy

Standalone EBITDA/PAT largely in line; GRMs at USD11.9/bbl

Strong all-around performance; Merger synergies yielding results

Revenue beat offset by 2Q guidance

Operating performance in line

Operating performance below expectations; high RM cost hurt margins

Performance hurt by ECL provisioning; valuation premium warrants Sell

Weak results; GST implementation impacts domestic growth

In-line operational performance; ad performance healthier than expected

Miss led by top client weakness; Quarterly performance misses estimates

In-line performance; navigating client-specific challenges

Profitability resurrection pushed further ahead

Ashok Leyland | Dewan Housing | Indian Bank | MRPL | Persistent System

Piping hot news

Under Vikram Limaye, NSE applies to settle co-location case with Sebi

v

The National Stock Exchange of India Ltd (NSE) on Thursday sought a

settlement with the markets regulator over allegations that it had provided

unfair access to its high-frequency trading systems to some brokers.

Chart of the Day: Kotak Mahindra Bank: Strong all-around performance; Merger synergies

yielding results

Steps taken to enhancing shareholder value

Research Team (Gautam.Duggad@MotilalOswal.com)

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

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

In the news today

Kindly click on textbox for the detailed news link

1

Reliance Industries to buy 25

pct stake in Ekta Kapoor led

Balaji Telefilms for Rs 413 cr

Reliance Industries will buy a

24.92% stake in the Ekta Kapoor-

promoted Balaji Telefilms, a listed

media and entertainment firm, for

around Rs 413 crore…

2

Unilever said softening commodity costs and the new Goods and Services

Tax regime in India will moderate the Anglo-Dutch consumer goods

major’s price growth by 30 basis points at the global level. “We expect

price growth to moderate,” Graeme Pitkethly, CFO at Unilever, said on

Thursday. “There are two reasons for this. First of all, a little less pressure

from commodity cost increases in the second half, and secondly, tax

benefits from the introduction of GST in India will be passed onto

consumers with an impact at the global Unilever level of around 28 to 30

basis points on price in the second half...

GST to moderate price growth, says Unilever CEO Graeme Pitkethly

3

Wipro buyback worth Rs

10,000 cr announced; if

successful, India Inc buybacks

to hit Rs 40,000 cr mark,

highest ever

4

Package for textiles sector

unveiled by Centre misses

target, enrolls just 41,000 in

EPF scheme

5

Private insurers reap a windfall

from crop cover scheme

Farmers’ distress is likely to cause

yet more trouble to the

government. Contrary to

Agricultural Minister Radha

Mohan Singh’s claim that

insurance companies, mostly in

the private domain, have not

unduly benefited from the

Pradhan Mantri Fasal Bima Yojana

(PMFBY), official data shows that

they would have made a windfall

of over ₹16,700 crore in 2016-17…

Software major Wipro on

Thursday announced a proposal to

buy back 34.37 crore shares for Rs

11,000 crore. In June 2016, the

Bengaluru-based company had

completed a buyback of shares

worth Rs 2,500 crore…

Despite the special package for

the textile and garment sector

unveiled by the Modi government

in June last year, fresh employee

registrations from the sector

under the employees provident

fund (EPF) scheme have been just

40,800 so far…

6

Tata group to sell biotech unit

Advinus Therapeutics to

Eurofins Scientific

The Tata group on Thursday said it

had agreed to sell its

pharmaceuticals and biotech

research unit Advinus

Therapeutics to Eurofins Scientific,

a Luxembourg-based group of

laboratories. Group holding

company Tata Sons Ltd…

7

Debt-ridden ABG Shipyard Ltd on

Thursday admitted before the

Ahmedabad bench of the National

Company Law Tribunal (NCLT) that

it had defaulted on loan

repayments and agreed for

bankruptcy proceedings to be

initiated against it...

ABG Shipyard agrees to

insolvency proceedings

21 July 2017

2

Mahindra & Mahindra

BSE SENSEX

31,955

S&P CNX

9,900

20 July 2017

Annual Report Update | Sector: Automobiles

CMP: INR1,383

TP: INR1,625 (+17%)

Getting future ready

UV segment needs push; tractor segment healthy

Buy

Mahindra & Mahindra’s (MM) FY17 annual report highlights the company’s focus on

technologically advanced new products in the farm segment, continuous improvement in

the UV segment to comply with the new emission/regulatory norms, and market share

increase in the CV segment.

Farm segment : Focus on technological prowess

Stock Info

Bloomberg

Equity Shares (m)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

M.Cap. (INR b)

M.Cap. (USD b)

Avg Val, INRm

Free float (%)

MM IN

592.6

1,509/1,142

-3/-3/-20

819.9

12.7

1555.0

74.8

Financials Snapshot (INR b)

2018E 2019E 2020E

Y/E Mar

Sales

490.5 561.0 631.4

EBITDA

55.0

64.1

73.3

NP*

40.4

47.2

53.0

EPS (INR)*

67.4

78.9

88.6

EPS Gr. (%)

7.8

17.0

12.3

Cons.EPS (INR)

66.7

79.9

87.3

BV/Sh. (INR)

476.3 529.4 592.2

RoE (%)

14.1

14.6

14.8

RoCE (%)

13.1

13.6

13.9

Sales

490.5 561.0 631.4

P/E (x)

20.5

17.5

15.6

Cons. P/E (x)

20.7

17.3

15.9

P/BV (x)

2.9

2.6

2.3

* incl. MVML

Shareholding pattern (%)

As On

Mar-17 Dec-16 Mar-16

Promoter

25.3

25.3

25.4

DII

20.1

19.1

18.1

FII

39.8

41.0

42.9

Others

14.8

14.6

13.5

FII Includes depository receipts

Right products drive growth and market share

n

Strong tractor segment growth of ~23% in FY17 was supported by the good

performance of YUVO, which has helped the company gain market share in the

30-50 HP segment (covers 70-80% of industry). YUVO, an all-new tractor

platform launched in April 2016, was highly successful in strengthening the

technology leadership of Mahindra tractors in FY17.

n

MM, in April 2017, also launched its third new tractor platform, JIVO, a new-

age small tractor platform in the sub-25 HP category (covers only 5% of

industry), which is an ideal choice for the growing segments of horticulture and

row crop farming.

Strategy: Farming 3.0 (a holistic view by MM)

n

Farming 3.0 is a comprehensive ecosystem, with offerings across the value

chain for the farmer. It provides access to smart machinery, precision farming

practices, digital platforms and ecosystem connect with an aim to help farmers

improve their crop yields and double their farm income.

n

With increasing labor cost and its scarcity, greater adoption of various forms of

mechanization is the way forward, in our view. Against this backdrop, MM

believes that the market for tractors and other farm equipment should grow

over the long term.

n

MM’s objective is to strengthen its global footprint and bring modern

technologies in farm mechanization into India. It also plans to leverage its

partnerships with MAM (Japan) and Sampo Rosenlew (Finland).

Outlook

n

According to MM, tractor industry growth in FY18 is expected to be driven by

positive rural sentiment, driven by normal monsoon and good agri income.

Auto segment: Challenges remain, but confident of sailing through

Losing market share in UVs; CV segment remains healthy

n

In the UV segment, MM lost market share from 37.9% to 29.2% in FY17, led by

intensifying competition and rural slowdown due to the impact of

demonetization. However, its bread and butter segment (Bolero, Scorpio, etc)

is gradually recovering, and should do well, led by likely good monsoon and

higher agri income.

21 July 2017

3

In February 2016, MM launched Blazo series of HCVs (trucks) with Fuelsmart

technology, leading to ~18% volume growth to 6,715 units in FY17.

Consequently, its market share in the HCV segment expanded to 4% from 3.4%

in the previous year.

n

In the LCV<2T segment, volumes grew ~8%, led by the success of Jeeto. MM’s

market share in this segment increased from 23.9% in FY16 to 25.7% in FY17.

n

To maintain its leadership position in goods LCVs in the 2-3.5t segment (market

share: 65.8%), the company launched Supro Minitruck and Supro Cargo Van in

February 2017.

Strategy

n

The company has strategized to strengthen the product portfolio and

refresh/update existing products. Also, MM is pursuing a strategy to introduce

petrol engines across the product range – the share of diesel variant in total PV

sales declined to 40% in FY17 from 58% in FY13.

Healthy outlook

n

For FY18, SIAM forecasts good growth for the industry: +7-9% for PVs, +5-7% for

LCV goods, +4-6% for CVs, double-digit for 3Ws, and 9-11% for 2Ws.

Focus on EVs to stay ahead of market

n

MM is focusing on development of the electric vehicle (EV) market and

upgradation of EV technology capabilities. MM’s EV portfolio comprises E20

electric car, e-Verito car and the Supro EV cargo and van. It sold 973 units in

FY17, up from 870 units in FY16. The plan is to increase capacity from 1,000

units in phase-1 to 5,000 units in phase-2 over the next 2-3 years.

Regulatory changes to increase investment/capex

n

The new safety regulations will be rolled out under the name of Bharat New

Vehicle Safety Assessment Program (BNVSAP), which will be applicable from

FY19 for new vehicles and from FY20 for existing vehicles. Similarly, emission

norms will be changed to BS-VI with effect from 1 April 2020 on a pan-India

basis. MM believes that conforming to the next stage of regulations will call for

the use of advanced technologies and will have an impact on costs. At the same

time, it is geared-up and confident of meeting these regulations.

n

Reduction of losses of key subsidiaries

n

n

Ssangyong reported PAT of INR2.3b in FY17 as against loss of INR1.6b in FY16.

Overall, the key subsidiaries reported reduction in losses this year (Refer

Exhibit

8).

MM is working toward containing 2W losses (FY17: INR4.7b) by adopting an

efficiency-focused approach and cost management. The company will focus on

improving sales of Mojo, and expects to bring a few Mojo variants in FY18.

Mahindra Two Wheelers’ (MTWL) past business strategy was focused on

addressing the mass 2W market. However, given the market response, MTWL

has decided to make a strategy shift by focusing on niche premium 2Ws.

Valuation and view

We estimate ~17% consolidated EPS CAGR over FY17-20 (v/s ~9% compounded

annual decline over FY14-17). Recovery in rural markets improves visibility of

volume revival in both its core businesses. MM is one of the cheapest large-cap auto

stocks, with valuation of 17.5x/15.6x FY19/20E consolidated EPS and 14.1/12.4x

core EPS (adjusted for value in subsidiaries after 20% holding discount). Maintain

Buy

with an SOTP-based target price of ~INR1,625.

21 July 2017

4

RESULTS

FLASH

BSE SENSEX

31,904

S&P CNX

9,873

20 July 2017

Results Flash | Sector: Oil & Gas

Reliance Industries

CMP: INR1,529

Under Review

We will revisit our estimates

post analyst meet/management

interaction.

Financials & Valuations (INR b)

Y/E March

Standalone EBITDA/PAT largely in line; GRMs at USD11.9/bbl

Reliance Industries’ (RIL) 1QFY18 standalone EBITDA rose 7% YoY (+3% QoQ) to

INR116b, largely in line with our estimate of INR118.5b. Reported PAT rose 9% YoY (flat

QoQ) to INR81.9b, in line with estimate of INR82.9b. Reported GRM stood at

USD11.9/bbl (est. of USD10) and refining throughput at 17.3mmt (est. of 17.5mmt).

n

Refining segment:

Refining EBIT stood at INR63.7b (-3% YoY, +2% QoQ) in

2017 2018E 2019E

2,420.3 3,257.4 3,739.4

432.6

314.3

96.7

14.6

11.6

9.1

13.3

15.8

1.6

13.8

2.5

507.0

354.1

108.9

12.7

11.7

9.9

14.4

14.0

1.4

10.2

1.6

538.3

386.1

118.8

9.1

11.5

10.2

14.4

Net Sales

EBITDA

Net Profit

EPS (INR)

EPS Gr. (%)

BV/Sh. (INR)

RoE (%)

RoCE (%)

Payout (%)

Valuations

P/E (x)

P/BV (x)

EV/EBITDA(x)

EV/Sales (x)

n

974.5 1,076.9 1,188.6

n

12.9

1.3

8.6

1.2

n

n

n

Standalone - Quarterly Earning Model

Y/E March

Net Sales

YoY Change (%)

Total Expenditure

EBITDA

Margins (%)

Depreciation

Interest

Other Income

PBT

Tax

Rate (%)

Adj PAT

YoY Change (%)

Margins (%)

Key Assumptions

Refining throughput (mmt)

GRM (USD/bbl)

1Q

534,960

-18.7

426,790

108,170

20.2

19,500

9,240

20,330

99,760

24,280

24.3

75,480

19.5

14.1

16.8

11.5

1QFY18. Reported GRM increased 3% YoY/QoQ to USD11.9/bbl v/s Reuters

SG GRM of USD6.4/bbl. Refining throughput stood at 17.3mmt (+3% YoY, -1%

QoQ) and exports at 10mmt.

Petrochemical segment:

Petrochemical EBIT stood at INR39.8b (+37% YoY,

+15% QoQ), with margin of 17% coming in above 14% in 4QFY17, primarily

due to an increase in polymer deltas. Petrochemical production – PP/PE/PVC

at 980tmt (-14% YoY, -8% QoQ), POY at 590tmt (+15% YoY, +2% QoQ) and

PX/PTA/MEG at 2.1mmt (+37% YoY, +11% QoQ). RIL successfully

commissioned the last crystallization train (Train 3) of the PX complex at

Jamnagar in June 2017.

E&P segment:

E&P EBIT stood at -INR2.3b v/s INR480m in 1QFY17 and -

INR780m in 4QFY17. KG-D6 gas production stood at 6.4mmscmd (-27% YoY, -

14% QoQ). Panna-Mukta gas production stood at 4.6mmscmd (-12% YoY, flat

QoQ). Shale gas production was down 11% QoQ due to shut-in at several

wells at Eagle Ford led by completion activity in adjacent pads.

Retail segment:

Retail EBIT stood at INR2.9b (+97% YoY, +20% QoQ), with the

margin at 2.5%. Reliance Retail added 18 stores during the quarter to reach a

a total of 3,634 stores across 703 cities. It commissioned 17 petro retail

outlets in 1QFY18 and now operates 465 outlets under Reliance Retail.

At the end of 1QFY18, consolidated outstanding debt stood at INR2,006b (v/s

INR1,966b at end-FY17) and cash & cash equivalents stood at INR721b (v/s

INR772b at end-FY17).

Valuation view:

On FY19E, the stock trades at 12.9x standalone EPS of INR119

and EV/EBITDA of 8.6x. We will revisit our estimates post the analyst meet.

3Q

618,060

9.3

512,020

106,040

17.2

20,770

9,310

30,250

106,210

25,990

24.5

80,220

11.1

13.0

17.8

10.8

4Q

671,460

34.4

558,660

112,800

16.8

24,090

2,350

13,710

100,070

18,560

18.5

81,510

11.4

12.1

17.5

11.5

1QE

574,944

7.5

456,421

118,523

20.6

27,456

9,355

24,600

106,313

23,389

22.0

82,924

9.9

14.4

17.5

10.0

1QAct

642,170

20.0

526,280

115,890

18.0

21,580

7,880

19,180

105,610

23,650

22.4

81,960

8.6

12.8

17.3

11.9

FY18

Var (%)

12%

15%

-2%

-21%

-16%

-22%

-1%

1%

-1%

FY17

2Q

595,770

-2.0

490,220

105,550

17.7

20,290

6,330

22,800

101,730

24,690

24.3

77,040

17.4

12.9

18.0

10.1

(INR Million)

QoQ (%)

-4%

-6%

3%

-10%

235%

40%

6%

27%

1%

YoY (%)

20%

23%

7%

11%

-15%

-6%

6%

-3%

9%

-1%

19%

3%

3%

-1%

3%

21 July 2017

5

Kotak Mahindra Bank

BSE SENSEX

31,904

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb

52-Week

Range

1, 6, 12 Rel. Per (%)

Avg Val, INRm

Free float (%)

S&P CNX

9,873

KMB IN

1,839

1,366.3 / 20.0

1019 / 692

-3/18/11

2001

69.9

20 July 2017

1QFY18 Results Update | Sector: Financials

CMP: INR980

TP: INR1,153(+18%)

Buy

n

Standalone results:

PAT grew 30% YoY to INR9.1b (in-line). Core operating

profit grew strongly by 30% YoY, led by healthy NII growth (17% YoY; NIMs

strong at 4.5%), acceleration in fee income (+43% YoY) and pristine asset

quality (stable GNPAs at 2.6%). KMB holds more than requisite provisioning in

relation to its exposure of INR2.36b to the 12 accounts identified by the RBI for

bankruptcy proceedings under NCLT (four accounts inherited from ING Vysya

Bank). Loan growth came in at 18% YoY (+6% QoQ; +15% in 4QFY17), led by

Financials & Valuations (INR b)

robust growth in CV (+6% QoQ, 35% YoY), corporate banking (+21/8%

Y/E March

2018E 2019E 2020E

YoY/QoQ) and unsecured loans (+24/5% YoY/QoQ).

NII

93.9 112.1 135.3

n

Other highlights:

a) CASA ratio remained stable QoQ at 44%, despite

OP

72.7 90.6 113.2

moderation in CA deposits, led by robust SA mobilization (+44/6% YoY/QoQ).

Cons. NP

61.7 78.1

96.6

b) SMA2 increased 11bp QoQ to 0.21%; OSRL fell 21% to 6bp.

Cons. EPS (INR) 32.4 41.0

50.8

n

Other businesses:

a) Profitability at its capital market business improved to

EPS Gr. (%)

20.9 26.5

23.7

INR1.3b (+57% YoY), led by 108% YoY PAT growth of K-Sec to INR1.25b. b) K-

Cons. BV. (INR)

232

272

321

Sec market share declined 30bp QoQ to 1.9%. c) Overall AUM increased 8%

Cons. RoE (%)

15.0 16.3

17.1

QoQ (+37% YoY), led by strong inflows in equity AUM (+92% YoY).

RoA (%)

1.8

2.0

2.0

P/E(X) (Cons.)

30.2 23.9

19.3

n

Valuation and view:

With the completion of merger integration with eIVBL,

P/BV (X) (Cons.) 4.2

3.6

3.1

synergies are likely to flow in. Strong presence across geographies/products

and healthy capitalization (T1 of ~19%) place the bank in a sweet spot to

capitalize on growth opportunities and gain market share. KMB’s premium

multiples are likely to sustain, considering strong growth and operating

leverage available across businesses, and a clean loan portfolio. Comfort on

asset quality remains the highest, with no SDR/5:25, negligible SMA2 (21bp)

and OSRL (6bp). At our SOTP of INR1,153, KMB will trade at 4.2x 2019E consol.

BV.

Buy.

Strong all-around performance; Merger synergies yielding results

21 July 2017

6

20 July 2017

Q1FY18 Results Update | Sector: Technology

Wipro

Neutral

BSE SENSEX

31,904

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

Avg Val, INRm

Free float (%)

S&P CNX

9,873

CMP: INR269

TP: INR270(+0%)

WPRO IN

Announces INR110b buyback

4,866

1,309.1 / 20.3

n

Revenue exceeds estimate and guidance:

1QFY18 CC revenue growth stood at 0.3%

QoQ, ahead of our estimate of -1% QoQ and also marginally exceeded the company’s

284 / 205

guidance of -2% to 0% QoQ. However, growth was lopsided and came from

4/-5/-14

India/ME/APAC/Emerging markets, while the core markets of the US (flat) and Europe

865

26.8

(decline) were relatively muted. IT Services EBIT margin shrunk 90bp QoQ to 16.8%, in

Revenue beat offset by 2Q guidance

Financials & Valuations (INR b)

2017 2018E 2019E

Y/E Mar

550.4 562.0 611.5

Net Sales

108.8 110.9 122.8

EBITDA

83.3

81.7

86.0

PAT

16.9

18.1

19.1

EPS (INR)

-6.3

7.1

5.4

Gr. (%)

105.9 109.2 128.3

BV/Sh (INR)

16.9

16.1

16.1

RoE (%)

13.6

13.5

14.7

RoCE (%)

15.9

14.8

14.1

P/E (x)

2.5

2.5

2.1

P/BV (x)

n

n

Estimate change

TP change

Rating change

n

line with our estimate, but with slightly higher currency realization of INR66.1 v/s our

assumed rate of INR65.5. PAT rose 7.4% QoQ to INR20.8b, above our estimate of

INR18.6b, led by above-estimate revenues and other income.

2QFY18 guidance offsets 1Q beat:

For 2QFY18, WPRO expects revenue of USD1,962-

2,001m, implying QoQ CC growth between -0.5% and +1.5%. This is below our 2QFY18

growth estimate of 1.8% QoQ, offsetting the 1Q beat. The larger geographies of Europe

and the US are expected to chip in. However, it expects to catch up with the industry

by 4QFY18. WPRO expects to contain margins in a narrow band of 17.5-18%, which it

achieved in FY17.

Announces INR110b buyback:

WPRO announced buyback of 343.75m equity shares

(7.06% of paid up equity) at INR320 per share – totaling to INR110b. This amounts to

more than 50% of net cash if we include short-term loans and borrowings amounting

to INR123b. The promoters have also expressed their intention to participate in the

proposed buyback.

Valuation view:

Our operating estimates are largely unchanged, and the 4.8% earnings

upgrade for FY18 comes from the 1Q PAT beat led by higher other income. While

WPRO’s outlook for industry-matching growth is encouraging, the guidance tells a

different story – YoY CC revenue guidance at the midpoint for 2Q is 3.1%, implying fifth

consecutive quarter of deceleration. Similarly, WPRO’s comments on freeing up senior

resources by automating L2 tickets raise hope for the company and industry, but do

not reflect in any form of margin strength just yet. WPRO trades at 14.8x/14.1x

FY18E/FY19E EPS. We expect revenue and earnings CAGR of 5.7% over FY17-19E. Our

price target of INR270 discounts FY19E EPS by 14x, and implies no upside to CMP.

Maintain

Neutral.

FY18E

4Q

1Q

2Q

3Q

1,955

1,972

1,997

2,032

2.7

0.9

1.3

1.8

139,875 136,261 138,446 141,951

2.2

-2.6

1.6

2.5

2.6

0.2

0.6

3.7

28.0

28.7

27.9

28.4

11.9

12.8

12.2

12.2

17.7

16.8

16.5

17.0

16.1

16.0

15.7

16.2

5,328

5,079

4,392

3,330

24.2

22.3

22.3

22.3

19,340 20,765 20,272 20,424

-8.3

7.4

-2.4

0.8

-13.5

1.2

-1.9

-3.2

4.0

4.3

4.2

4.5

181,482 166,790 169,655 173,040

84.8

82.1

82.1

82.1

16.3

15.9

47.2

46.4

46.2

46.1

1941

1955

58.3

58.2

FY17

4Q

2,074

2.0

145,380

2.4

3.9

28.8

12.2

17.5

16.6

1,959

22.3

20,194

-1.1

4.4

4.5

176,675

82.1

46.1

7,705

4.9

550,402

7.4

28.9

12.8

17.9

16.1

20,254

23.2

83,326

-6.3

16.9

181,482

77.4

46.4

FY18E

8,075

4.8

562,038

2.1

28.5

12.3

17.0

16.1

14,760

22.3

81,655

-2.0

18.1

176,675

77.4

46.2

FY19E

8,662

7.3

611,462

8.8

28.7

12.1

17.5

16.6

11,337

23.5

86,037

5.4

19.1

190,425

77.2

46.0

Est.

Var.

1QFY18 (% / bp)

1,956

0.8

0.1

81bp

134,062

1.6

-4.2

157bp

-1.4

162bp

28.4

38bp

12.7

12bp

16.6

25bp

15.7

26bp

3,189

59.3

23.0

-65bp

18,566

11.8

-4.0 1137bp

-9.5 1072bp

3.8

180,197

-7.4

82.0

10bp

46.8

-40bp

Quarterly Performance (Consolidated)

Y/E March

IT Services Revenue (USD m)

QoQ (%)

Overall Revenue (INR m)

QoQ (%)

YoY (%)

GPM (%)

SGA (%)

IT Se rv. EBIT (%)

EBIT Ma rgi n (%)

Othe r i ncome

ETR (%)

PAT

QoQ (%)

YoY (%)

EPS (INR)

Headcount

Uti l e xcl . tra i ne e s (%)

Attri ti on (%)

Offs hore re v. (%)

Re v Gui da nce (USDm)

Fi xe d Pri ce (%)

FY17

1Q

2Q

3Q

1,931

1,916

1,903

2.6

-0.8

-0.7

135,992 137,657 136,878

-0.2

1.2

-0.6

11.1

10.0

6.4

29.1

28.9

29.4

13.0

13.2

13.0

17.8

17.8

18.3

16.1

15.8

16.4

4,848

4,958

5,120

22.9

22.2

23.3

20,518 20,672 21,094

-8.2

0.8

2.0

-6.2

-7.5

-5.6

4.2

4.3

4.4

173,863 174,238 179,129

79.7

82.8

81.9

16.5

16.6

16.3

45.6

46.1

46.5

1950

1950

1955

56

56.4

57.7

21 July 2017

7

20 July 2017

1QFY18 Results Update | Sector: Metals

Hindustan Zinc

Neutral

BSE SENSEX

31,904

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

Avg Val, INRm

Free float (%)

S&P CNX

9,873

HZ IN

4,225

1,187.5 / 18.4

305 / 172

12/-20/31

694

35.1

CMP: INR281

TP: INR301(+7%)

Operating performance in line

Zinc price outlook remains bullish; Maintain Neutral

Financials & Valuations (INR b)

Y/E March

2017 2018E 2019E

Net Sales

173.0 215.1 233.4

EBITDA

97.4 122.8 133.4

NP

83.2

91.0 100.2

EPS (INR)

19.7

21.5

23.7

EPS Gr. (%)

-0.6

9.5

10.0

BV/Sh. (INR)

72.6

85.7 101.0

RoE (%)

24.4

27.2

25.4

RoCE (%)

28.3

31.8

30.1

Payout (%)

180.4

39.2

35.7

EV/EBITDA (x)

10.7

8.1

7.1

Estimate change

TP change

Rating change

1QFY18 operating performance was in line

n

Hindustan Zinc’s (HZL) EBITDA increased 111% YoY to INR23.8b (in-line) in

1QFY18, driven by 85% growth in mine production to 233kt and a 35% increase

in LME for zinc. Mine production was lower last year due to famine phase.

n

Zinc volumes were 7% ahead of estimates at 194kt (+90% YoY).

n

Cost of production increased 2% YoY (+18% QoQ) to INR62,698/t due to rising

commodity prices and mine mix (higher stripping ratio in open cast mines) and

lower average grade.

n

PBT at INR24.2b was 12% ahead of estimate, led by lower DDA and higher

other income (net of finance cost).

Mine development running aggressively; eying higher volumes beyond FY20E

n

Mine development is progressing well at 8,828 meters (+82% YoY, +28% QoQ).

n

Vertical shaft at RA in on track to start production by 2HFY19. SK mine vertical

shaft and expansion of mill to 5.8mtpa too will be completed in 1HFY19E.

Zawar mine expansion to 2.7mtpa too will be completed.

n

Targeting aggressive production expansion beyond FY20E (mine 1.5mtpa).

Zinc price outlook remains bullish; Maintain Neutral

n

Zinc supply is getting tighter due to strong demand and a lag in supply

response. The pricing outlook has turned more bullish.

n

We had recently raised the LME assumption by USD400 to USD3,200/t, and the

rating to

Neutral

with a target price of INR301/share.

INR million

4Q

217

47

135

2,777

62,602

99.9

37,480

186.5

59.9

142

5,321

4,811

36,829

0

36,829

6,259

17.0

30,570

30,570

42.2

1Q

194

35

115

2,589

45760

98.1

23,840

110.8

47.6

1,370

3,600

5,300

24,170

0

24,170

5,410

22.4

18,760

18,760

80.8

FY18

2QE

3QE

189

203

37

39

112

120

2,800 3,200

50,002 61,025

41.8

22.5

27,960 36,432

34.6

30.9

55.9

59.7

0

0

5,004 5,054

3,206 3,407

26,162 34,785

0

0

26,162 34,785

5,494 7,305

21.0

21.0

20,668 27,480

20,668 27,480

8.7

18.5

4QE

209

41

124

3,200

63,490

1.4

37,924

1.2

59.7

0

5,105

3,069

35,889

0

35,889

7,537

21.0

28,352

28,352

-7.3

FY17

696

138

447

2,366

172,964

21.6

97,390

43.7

56.3

2,017

17,871

24,496

101,998

-5

102,003

18,837

18.5

83,166

83,161

-0.7

FY18E

795

152

470

2,947

224,646

29.9

126,157

29.5

56.2

1,370

18,764

14,982

121,005

0

121,005

25,745

21.3

95,260

95,260

14.5

1QE

181

35

107

2,589

44,195

74.6

23,652

109.2

53.5

90

4,955

3,012

21,619

0

21,619

4,540

21.0

17,079

17,079

64.6

vs Est.

%

7

-1

7

0

4

1

Quarterly Performance

Y/E March

Zinc refined (kt)

Lead refined (kt)

Silver (tonnes)

Zinc LME (USD/t)

Net Sales

Change (YoY %)

EBITDA

Change (YoY %)

As % of Net Sales

Finance cost

DD&A

Other Income

PBT (before EO item)

EO exp. (income)

PBT (after EO item)

Total Tax

% Tax

Reported PAT

Adjusted PAT

Change (YoY %)

1Q

120

23

88

1,918

25,306

-30.3

11,309

-42.5

44.7

712

3,644

6,101

13,053

5

13,048

2,680

20.5

10,369

10,374

-53.4

FY17

2Q

3Q

148

211

32

36

107

117

2,252 2,518

35,257 49,799

-12.6

45.2

20,767 27,834

2.6

88.3

58.9

55.9

712

451

4,317 4,589

7,702 5,882

23,440 28,676

0

0

23,440 28,676

4,421 5,477

18.9

19.1

19,019 23,199

19,019 23,199

-11.4

28.1

-27

76

12

12

19

10

10

25.1

21 July 2017

8

RESULTS

FLASH

BSE SENSEX

31,904

S&P CNX

9,873

20 July 2017

Results Flash | Sector: Automobiles

Bajaj Auto

BUY

CMP: INR2,819

n

TP: INR3,359

We will revisit our estimates

post earnings call/management

interaction.

Operating performance below expectations; high RM cost hurt margins

Net sales declined 5.3% YoY (grew 11.1% QoQ) to INR54.4b (our estimate:

INR52.3b), as volume fell 10.7% YoY (grew 12.8% QoQ). In the domestic

market, factors like reduced stocks within channel and postponement of

purchases by customers impacted wholesale numbers. Billing for June 2017

was ~108k units v/s retails of ~155k units. However, ~6% YoY increase (1.5%

QoQ decline) in realization to INR61,258/unit aided revenue.

n

Export revenue grew 20.5% YoY to INR24.8b, led by 12% YoY volume growth

and 7.5% YoY realization growth. Realization per dollar was lower at INR66.8

v/s INR67.1 in 4QFY17 and 1QFY17.

n

RM cost was higher by 280bp YoY (220bp QoQ) due to commodity cost

inflation. Consequently, EBITDA margin declined 322bp YoY (126bp QoQ) to

17.2% (our estimate: 19.1%). Automotive business EBIT margin shrank 375bp

YoY (235bp QoQ) to 15.9%, led by operating deleverage due to lower volumes.

n

Exceptional cost of INR320m is one-time compensation to dealers as a part of

transition to GST. It indicated loss of INR1,400 per vehicle due to same.

n

Other income grew 71% YoY to INR4.6b due to likely dividend from KTM.

n

KTM’s domestic volume increased 52.8% YoY, led by healthy response to

recently-launched KTM 250 (sold ~2,300 units) and KTM 390, which has wait

list in the domestic market. BJAUT indicated strong response to KTM in future.

Key questions for the management

n

Outlook on export demand, especially in key markets like Nigeria, Sri Lanka.

n

Commodity inflation impact in 1QFY18.

Valuation and view:

We will revisit our estimates post earnings call. The stock

trades at 19.6x/16.8x FY18E/19E EPS. Maintain

Buy

with a TP of INR3,359.

FY17

2Q

3Q

4Q

1,032

852

788

-2.3

-10.5

-9.7

58,676 59,495 62,171

2.0

2.0

1.2

60,545 50,669 48,973

-0.4

-8.7

-8.6

67.0

66.8

67.8

4.3

4.8

4.6

7.4

7.9

9.2

12,961 10,439 9,060

21.4

20.6

18.5

3,420 3,193 2,936

7

3

2

770

772

757

15,605 12,858 11,236

4,378 3,612 3,218

28.1

28.1

28.6

11,228 9,246 8,018

6.7

(4.7) (15.5)

FY18

2Q

3Q

1,047

999

1.4

17.2

61,809 62,736

5.3

5.4

64,683 62,642

6.8

23.6

67.7

67.2

4.4

4.2

8.3

8.0

12,698 12,937

19.6

20.7

3,400 3,650

3

3

800

835

15,296 15,750

4,436 4,567

29.0

29.0

10,860 11,182

(3.3)

20.9

Conference Call Details

Date:

21 July 2017

Time:

10:00am IST

Dial-in details:

+91-22-3960 0663

st

Financials & Valuations (INR b)

2018E 2019E

Y/E Mar

236.2 264.0

Net Sales

47.3

54.5

EBITDA

41.5

48.6

NP

143

168

EPS (INR)

8.5

17.0

EPS Gr. (%)

654

721

BV/Sh. (INR)

23.1

24.4

RoE (%)

22.4

23.6

RoCE (%)

P/E (x)

19.6

16.8

P/BV (x)

4.3

3.9

2020E

298.1

62.7

56.5

195

16.2

770

26.2

34.4

14.4

3.7

Quarterly Performance

Y/E March

Volumes ('000 units)

Growth YoY (%)

Realization (INR/unit)

Growth YoY (%)

Net Sales

Change (%)

RM/Sales %

Staff cost/Sales %

Oth. Exp./Sales %

EBITDA

EBITDA Margins (%)

Other Income

Interest

Depreciation

PBT

Tax

Effective Tax Rate (%)

Adj. PAT

Change (%)

E: MOSL Estimates

1Q

995

-1.8

57,784

4.5

57,480

2.7

67.2

4.7

7.7

11,763

20.5

2,671

2

775

13,657

3,873

28.4

9,784

2.2

INR Million)

FY17

4Q

977

24.1

55,754

-10.3

54,499

11.3

65.1

4.8

7.5

12,328

22.6

2,789

3

880

14,234

4,314

30.3

9,920

23.7

FY18E

3,666

3,911

(5.8)

6.7

59,419 60,407

2.4

1.7

217,827 236,249

(3.6)

8.5

67.1

67.7

4.6

4.6

8.0

8.0

44,384 46,803

20.4

19.8

12,220 14,412

14

10

3,073

3,268

53,516 57,937

15,081 16,960

28.2

29.3

38,436 41,522

(2.2)

8.0

Est.

Var.

1Q

(%)

888.4

0.0

(10.7)

58,907

4.0

1.9

52,335

4.0

-8.9

67.4

5.3

8.3

10,017

-6.3

19.1 -190bp

3,200

3

775

12,440

3.5

3,608

29.0

8,832

7.2

-9.7

1Q

888

-10.7

61,258

6.0

54,424

-5.3

70.0

5.0

7.8

9,384

17.2

4,573

2

753

12,881

3,642

28.3

9,469

(3.2)

21 July 2017

9

20 July 2017

2QCY17 Results Update | Sector: Capital Goods

ABB

Sell

BSE SENSEX

31,904

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

Avg. Val, INRm

Free float (%)

S&P CNX

9,873

ABB IN

211.9

313.4 / 4.9

1619 / 950

-5/11/-2

126

25.0

CMP: INR1,459

n

TP: INR1,180 (-20%)

Performance hurt by ECL provisioning; valuation premium warrants Sell

Operational performance below expectations:

2QCY17 revenue rose 6% YoY

to INR22.3b, missing our estimate of INR23.8b by 7%. EBIDTA margin of 6.6%

(+120bp YoY) too was below our estimate of 9.7%. EBITDA rose 30% YoY to

INR1.5b, but came in below our estimate of INR2.2b due to ECL provisioning

done under Ind-AS accounting system and expenses incurred on developing

new products. PAT of INR0.8b too missed our estimate of INR1.1b.

Gross margin improves 160bp YoY to 36% – near-all time high:

Gross margin

improved 160bp YoY to 35.9%, driven by initiatives undertaken over the past 3-

4 years toward increased localization, rationalization of supply chain, improving

efficiency, better project management capabilities and lower raw material

prices. EBITDA margin improved 120bp YoY to 6.6%.

2Q order inflow up 13% YoY; order backlog increases 56% YoY:

Order inflow

increased 13% YoY to INR23.0b in 2QCY17, driven by finalization of base

orders. Large-ticket orders did not materialize during the quarter, given the

cautious approach adopted by clients in the run-up to GST implementation.

Key sectors driving base orders were utilities, transmission and infrastructure,

while industrial companies continued to incur operational capex. Order backlog

stands at INR121b (+56% YoY), providing revenue visibility of 1.4x its CY16

revenue.

Valuation view:

Management is optimistic on the demand scenario, driven by

government capex. It continues to remain focused on margin expansion via its

efforts toward operational efficiency and localization. We cut our estimates for

CY17/18 by 11/2% to factor in margin compression on account of ECL

provisioning, and maintain our

Sell rating

given premium valuations. We

maintain our price target of INR1,180 (35x Mar’19 EPS of INR33).

(INR Million)

CY17

2Q

3Q

22,237 23,383

6.2

13.8

1,473

1,533

29.7

1.1

6.6

6.6

383

393

231

327

326

100

1,185

913

435

309

36.7

33.9

751

603

751

603

34.9

-30.7

CY16

4Q

30,173

21.1

5,230

85.5

17.3

420

399

-233

4,177

1,249

29.9

2,928

2,928

99.4

85,318

6.4

7,901

5.8

9.3

1510

919

658

6,131

1,957

31.9

3,687

4,175

25.0

CY17E

96,113

12.7

9,951

25.9

10.4

1573

1,169

378

7,587

2,421

31.9

5,166

5,166

23.7

MOSL

1Q

23,833

13.4

2,236

31.5

9.4

393

285

40

1,598

542

33.9

1,056

1,056

36.4

Var.

(%)

-6.7%

-34.1%

Financials & Valuations (INR b)

Y/E Dec

2016 2017E 2018E

Net Sales

86.6

97.5 113.1

EBITDA

7.9

10.0

12.6

Adj. PAT

3.7

5.2

6.9

Adj. EPS (INR)

19.7

24.4

32.5

EPS Gr (%)

25.0

23.7

33.2

BV/Sh (INR)

154.9 179.3 203.3

RoE (%)

12.7

13.6

16.0

RoCE (%)

18.3

20.9

24.0

P/E (x)

75.8

61.2

46.0

P/BV (x)

9.6

8.3

7.3

n

n

Estimate change

TP change

Rating change

n

Quarterly Performance

Y/E December

Sales

Change (%)

EBITDA

Change (%)

As % of Sales

Depreciation

Interest

Other Income

PBT

Tax

Effective Tax Rate (%)

Repoted PAT

Adj. PAT

Change (%)

1Q

20,035

10.4

1,808

25.9

9.0

359

223

149

1,376

442

32.1

854

934

72.0

CY16

2Q

3Q

20,947 20,550

8.4

4.4

1,136

1,516

-29.5

-2.7

5.4

7.4

357

406

197

178

299

299

881

1,231

324

427

36.8

34.7

556

811

556

871

-18.7

48.2

4Q

24,915

2.7

2,819

7.1

11.3

389

285

95

2,241

773

34.5

1,468

1,468

13.4

1Q

21,689

8.3

1,715

-5.2

7.9

376

212

186

1,312

428

32.6

884

884

-5.3

-25.8%

-28.9%

-28.9%

21 July 2017

10

Alembic Pharmaceuticals

BSE SENSEX

31,904

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

Avg. Val, INRm

Free float (%)

S&P CNX

9,873

ALPM IN

189

105.2 / 1.6

709 / 492

5/-24/-20

58

27.3

20 July 2017

1QFY18 Results Update | Sector: Healthcare

CMP: INR558

n

TP: INR510 (-9%)

Neutral

Weak results; GST implementation impacts domestic growth

1Q results below expectations:

Sales declined 11% YoY to INR6.5b (~15% below

estimate) in 1QFY18 due to muted growth in India business (-21% YoY). EBITDA

margin contracted ~580bp YoY to 15.6% due to lower domestic sales and high

R&D expense (14% of sales). PAT declined 35% YoY to INR667m due to weak

operating profit. We expect a recovery in 2QFY18, driven by channel refilling in

the domestic markets (post GST implementation) and ramp-up in US sales (on

the back of Pristiq launch).

n

GST impacts domestic business; US business up sequentially:

Domestic

business declined 21% YoY, primarily due to channel destocking in the run up

to GST implementation. Industry has lost almost one month of sales due to

inventory destocking at the channel partner level. Although a recovery is

expected in the coming quarters, it would be key to watch if channel partners

refill inventory to old levels. International business sales declined 9% YoY – US

business fell ~5% YoY (+>10%QoQ), while non-US business declined ~17% YoY.

US sales included one month of Pristiq sales. We expect the US business to

grow sequentially, led by the ramp-up of six products launched in 1Q.

n

Concall takeaways:

(a)

Capex for FY18 to be ~INR5b.

(b)

R&D expense to

remain high at ~INR5b annually, as ALPM plans to file ~100 ANDAs over the

next three years.

(c)

Oncology oral solids and injectables facilities to be ready

for batch testing in FY18; ANDA filings to start FY19 onward.

(d)

Couple of

Derma filings can happen in FY18 through CMO.

(e)

General injectable and

Derma filings in the US to start from FY19.

n

Investments in niche areas to fetch return in medium term:

Given that recent

investments in Oncology, Derma and Opthal will fetch returns only from FY20,

high R&D expense, coupled with pricing pressure in the US, will keep growth in

check over the near term. We maintain

Neutral

with a TP of INR510 @20x

FY19E EPS (v/s INR640 @20x FY19E EPS). We cut FY18E/FY19E EPS by ~20% as

we build in lower domestic growth and operating margins.

(INR Million)

Financials & Valuations (INR b)

Y/E MAR

2017 2018E

Net Sales

31.0

32.5

EBITDA

6.1

5.9

PAT

4.0

3.9

EPS (INR)

21.6

20.5

Gr. (%)

-43.2

-5.2

BV/Sh (INR)

100.8 115.3

RoE (%)

23.0

19.0

RoCE (%)

22.1

18.5

P/E (x)

25.9

27.3

P/BV (x)

5.5

4.8

EV/EBITDA(x)

17.1

17.4

2019E

37.2

7.3

4.8

25.5

24.7

134.8

20.4

20.1

21.9

4.1

14.2

Estimate change

TP change

Rating change

Quarterly Performance (Consolidated)

21 July 2017

11

RESULTS

FLASH

BSE SENSEX

31,904

S&P CNX

9,873

20 July 2017

Results Flash | Sector: Media

DB Corp

Buy

CMP: INR372

n

TP: INR450

We will revisit our estimates

post earnings call/management

interaction.

In-line operational performance; ad performance healthier than expected

PAT grew 6% YoY to INR1.1b (largely in-line; our estimate: INR1.12b). EBITDA

grew 3% YoY to INR1.86b (largely in-line, our estimate: INR1.85b). EBITDA

margin was in-line at 31.4%.

n

Print ad revenue was healthier than expected, given the impact of GST rollout

and high base effect. Print ad revenue grew 4.5% YoY to INR3.9b (1.5% above

our estimated INR3.85b).

n

Circulation revenue disappointed; grew 5% YoY to INR1.23b (our estimate:

INR1.27b); growth was primarily yield-driven on growth from mature markets.

n

Digital business revenue declined 1.5% YoY to INR123m; Radio ad revenue

grew 11% YoY to INR312m (in-line).

n

Raw material cost increased 7% YoY to INR1.71b (1% above estimate). Overall

operating expenses grew 4.8% YoY to INR4.08b, largely in-line, as lower

employee costs more than cushioned the escalation in RM and SG&A expenses.

n

For Emerging business, including mobile app downloading and E-real estate,

reported EBITDA loss reduced to INR62m (v/s INR76m in 4QFY17).

n

RM cost at 28.7% of revenue in 1QFY18 vs 31.1% in 4QFY17 and 28% in 1QFY17

(est: 28.4% of revenue).

n

Key questions for the management

n

Which sectors were laggards and which sectors are expected to drive ad revival

n

Update on the new IRS survey

Valuation and view:

We will revisit our estimates post earnings call. At CMP of

INR372, the stock trades at an attractive 15.7x FY18E and 13.6x FY19E EPS. We

have a

Buy

rating.

FY17

2Q

5,287

10.6

3,782

1,505

33.6

28.5

216

6

41

1,325

440

33.2

885

0

885

47.3

FY18

2Q

5,700

7.8

4,217

1,484

-1.5

26.0

225

11

80

1,328

451

34.0

876

0

876

-1.0

FY17

3Q

7,071

12.7

4,585

2,485

25.4

35.1

227

10

80

2,328

792

34.0

1,537

0

1,537

30.1

4Q

5,653

9.3

4,359

1,294

15.3

22.9

224

11

81

1,140

388

34.0

752

0

752

17.3

22,435

9.4

16,013

6,422

19.9

28.6

863

74

170

5,654

1,907

33.7

3,747

0

3,747

25.9

FY18E

24,366

8.6

17,160

7,205

12.2

29.6

896

43

321

6,588

2,240

34.0

4,348

0

4,348

16.0

Conference Call Details

Date:

21 July 2017

Time:

12:30pm IST

Dial-in details:

+91-22-3938 1071

th

Financials & Valuations (INR b)

2017 2018E 2019E

Y/E Mar

Net Sales

22.4

24.4

26.5

EBITDA

6.4

7.2

8.0

NP

3.7

4.3

5.0

EPS (INR)

20.4

23.6

27.5

EPS Gr. (%)

25.8

16.0

16.1

BV/Sh. (INR)

86.7

97.3 109.7

RoE (%)

25.5

25.7

26.5

RoCE (%)

23.0

24.0

24.9

P/E (x)

18.3

15.7

13.6

P/BV (x)

4.3

3.8

3.4

Quarterly Performance (INR m)

Y/E March

Sales

YoY (%)

Operating Expenses

EBITDA

YoY (%)

EBITDA margin (%)

Depreciation

Interest

Other Income

PBT

Tax

Effective Tax Rate (%)

PAT

Minority Interest

Adj PAT

YoY (%)

1Q

5,704

20.5

3,892

1,812

48.7

31.8

211

34

41

1,608

568

35.3

1,040

0

1,040

56.5

3Q

6,273

7.1

4,290

1,982

6.1

31.6

218

30

36

1,771

590

33.3

1,181

0

1,181

10.6

4Q

5,171

0.6

4,049

1,122

-1.7

21.7

218

5

51

950

309

32.5

641

0

641

-0.2

1Q

5,942

4.2

4,079

1,863

2.8

31.4

220

16

70

1,697

597

35.2

1,100

0

1,100

5.8

21 July 2017

12

RESULTS

FLASH

BSE SENSEX

31,904

S&P CNX

9,873

Zensar Tech

Buy

20 July 2017

Results Flash | Sector: Media

CMP: INR808

TP: INR1,020(+26%)

We will revisit our estimates

post earnings call/management

interaction.

Miss led by top client weakness

Quarterly performance misses estimates

n

ZENT’s 1QFY18 revenue grew 2.5% QoQ CC, below our estimate of +5.3% QoQ.

In USD terms, revenue grew 2.2% QoQ to USD114m, indicating a cross-

currency impact of -30bp.

n

We estimate contribution of 3.9% from the full integration of Foolproof and

Keystone. Excluding this, we estimate organic revenue to have declined by

~1.5% QoQ.

n

EBITDA margin expanded 230bp QoQ to 10.2%. However, this was 160bp

below our estimate of 11.8%. Our expectations were based on reversal of one-

time expenses incurred in the previous quarter and integration of higher-

margin acquisitions.

n

While IMS margins improved to 3.1% from -12.2% in the previous quarter,

Application margins were lower QoQ by 370bp to 13.9%.

n

PAT at INR472m (-36.3% YoY) was lower than our estimate of INR558m (-26.8%

YoY), led by the overall operational miss.

Top client weakness and strong Digital growth

n

Weakness was seen in top five clients (35% of revenue), which saw a decline of

7% QoQ. Barring this, growth was strong across all other buckets: Top 6-10

grew by 8.7% QoQ, Top 11-20 by 15.4% QoQ and Non Top 20 by 6.2% QoQ.

n

Growth in Digital was encouraging, as Foolproof and Keystone got added to the

portfolio. Digital revenue grew 8.8% QoQ and 33.3% YoY.

Valuation and view:

We will revisit our estimates the post earnings call. Outlook on

growth, especially in top accounts, and insights on execution of strategy would be

keenly watched. Based on current estimates, it trades at 15.5/11.1x FY18/19E EPS.

Maintain

Buy.

3Q

118

1.3

7,865

3.9

30.2

16.4

1,085

13.8

12.3

201

30.2

800

13.7

11.9

17.7

8,564

79.5

33.5

4Q

112

-4.9

7,433

-0.4

27.7

19.9

585

7.9

6.2

-228

45.5

104

-87.0

-85.2

2.3

8,524

79.2

34.5

1Q

114

2.2

7,367

-2.5

27.6

17.4

748

10.2

7.7

203

32.0

472

354.7

-36.3

10.5

8,567

83.2

37.5

FY18E

2Q

119

4.2

7,742

0.5

26.5

15.5

850

11.0

9.6

150

29.0

584

23.9

-17.0

13.0

8,807

82.0

36.6

FY17

3Q

121

1.8

7,944

1.0

26.3

15.0

900

11.3

9.9

148

29.0

619

5.9

-22.7

13.7

9,057

80.5

35.9

4Q

125

2.9

8,238

10.8

27.9

15.0

1,061

12.9

11.5

139

29.0

726

17.4

599.7

16.1

9,107

81.0

35.8

459

1.4

30,556

3.1

29.3

16.8

3,819

12.5

10.9

241

31.6

2,349

-24.1

52.1

8,524

79.7

33.2

FY18E

480

4.4

31,291

2.4

27.1

15.7

3,558

11.4

9.7

639

29.6

2,401

2.2

53.2

9,107

81.7

36.4

Est.

1QFY18 Var. (% / bp)

118

-3.4

5.9

-362bp

7,610

-3.2

-0.2

-230bp

28.8

-118bp

17.0

44bp

896

-16.5

11.8

-162bp

10.4

-267bp

28

635.8

29.0

558

-15.5

157.2

19747bp

-26.8

-948bp

12.4

8,724

-1.8

81.0

220bp

34.2

326bp

Conference Call Details

Date:

21 July 2017

Time:

16:00 IST

Dial-in details:

+91-22-3938 1075

st

Financials & Valuations (INR b)

Y/E Mar

2017 2018E 2019E

Net Sales

30.6

31.3

36.7

EBITDA

3.8

3.6

5.0

NP

2.3

2.4

3.3

EPS (INR)

52.1

53.2

72.5

EPS Gr. (%)

-24.1

2.2

36.2

BV/Sh. (INR)

354.0 393.9 449.8

RoE (%)

15.5

14.2

17.2

RoCE (%)

21.4

17.6

23.0

Payout (%)

23.0

21.3

19.7

Div. Yield

1.5

1.4

1.8

Quarterly Performance (Consolidated)

Y/E March

Revenue (USD m)

QoQ (%)

Revenue (INR m)

YoY (%)

GPM (%)

SGA (%)

EBITDA

EBITDA Margin (%)

EBIT Margin (%)

Other income

ETR (%)

PAT

QoQ (%)

YoY (%)

EPS (INR)

Headcount

Utilization (%)

Offshore rev. (%)

1Q

114

3.1

7,554

7.2

29.1

15.4

1,037

13.7

12.3

198

32.6

741

5.4

-2.8

16.4

8,238

79.8

31.2

FY17

2Q

116

1.8

7,703

1.8

30.1

15.6

1,111

14.4

12.8

70

29.6

704

-5.0

-22.9

15.6

8,316

80.1

33.8

21 July 2017

13

NIIT Technologies

BSE SENSEX

31,904

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

Avg Val, INRm

Free float (%)

S&P CNX

9,873

NITEC IN

61

33.4 / 0.5

601 / 370

-6/5/2

158

69.3

20 July 2017

Q1FY18 Results Update | Sector: Technology

CMP: INR546

n

TP: INR540(-1%)

Neutral

In-line performance; navigating client-specific challenges

Largely in-line performance:

NITEC’s 1QFY18 CC revenue growth of 1.4% QoQ

(excluding one-time revenue gains in 4Q) was largely in line with our estimate of

+1.3%. RuleTek acquisition contributed ~0.5% QoQ CC (one-month impact),

adjusted for which, the performance was marginally below our estimate. EBITDA

margin shrunk 200bp QoQ to 15.6%, in line with our estimate of 15.8%, but with

better quality (higher GPM offset by higher SGA). Net income for the quarter

increased 64% YoY to INR513m, below our estimate of INR587m, due to tax on

dividend income from foreign subsidiaries

BFSI/manufacturing drove growth, order intake steady:

BFSI grew 1.7% QoQ CC,

while Manufacturing & Others grew 4.3% QoQ CC. Transportation, however, was a

drag (-0.8% QoQ CC). Total order intake during the quarter was USD110m, in the

narrow band of recent quarters. Digital revenues constitute ~21% of the business.

Expects performance to continue picking up:

Despite ~USD2m impact from client

ramp-down in 2Q, NITEC expects its revenue growth to accelerate, with the push

coming from Digital segments and improvement in NITL. Even EBITDA margin

should start inching from 15.6% and exit the year at ~18%, led by business mix and

improvement in GIS for the remainder of the year.

Valuation and view:

Following the positive commentary and stabilizing segments,

our earnings estimates are up by ~3% for FY18/FY19. We expect revenue CAGR of

7.2% and earnings CAGR of 13% over FY17-19. The company’s investments in tuck-

in Digital capabilities can potentially drive better growth, going forward. We

continue to watch out for more definitive signs of the same. The stock trades at

11x FY19E earnings. Expansion of valuation multiple will be a function of improved

revenue growth. Our price target of INR540 discounts FY19E earnings by 11x.

Neutral.

FY17

2Q

103

4.2

6,929

2.2

35.3

18.8

1,145

16.5

11.9

29

24.9

54.0

590

107.0

-13.6

9.7

8,868

81.0

12.9

39.0

46.0

3Q

101

-2.4

6,938

2.2

36.0

19.2

1,162

16.7

12.1

59

25.3

48.0

624

5.8

-15.8

10.6

8,809

80.0

12.9

40.0

48.0

4Q

104

3.1

7,176

4.8

36.2

18.6

1,260

17.6

13.2

-12

13.4

72.0

739

18.4

-6.5

12.6

8,853

81.0

12.7

41.0

48.0

1Q

108

3.9

7,089

5.7

35.4

19.8

1,108

15.6

11.2

58

34.7

42.0

513

-30.6

80.0

8.7

8,963

81.2

12.1

40.0

49.0

FY18E

2Q

109

0.7

7,188

3.7

34.4

18.0

1,181

16.4

11.8

88

24.0

72.0

638

24.3

8.1

10.8

9,138

80.0

FY17

3Q

110

1.4

7,311

5.4

34.1

17.6

1,203

16.5

11.8

71

24.0

72.0

639

0.2

2.4

10.9

9,338

79.0

4Q

112

1.7

7,458

3.9

34.1

17.0

1,279

17.1

12.6

79

24.0

72.0

700

9.5

-5.3

11.9

9,438

79.5

408

0.5

27,750

3.5

35.7

19.1

4,582

16.5

11.9

159

18.6

220.0

2,238

-20.1

38.0

8,853

80.4

39.8

440

7.8

29,046

4.7

34.5

18.1

4,771

16.4

11.8

296

26.4

258.0

2,489

11.2

42.3

9,438

79.9

39.7

FY18E

Est.

1QFY18

105

0.8

6,862

2.5

34.8

19.0

1,084

15.8

11.5

80

24.0

72.0

587

-45.3

87.6

9.5

8,978

80.5

Var.

Financials & Valuations (INR b)

2017 2018E 2019E

Y/E Mar

27.8

29.0

31.3

Net Sales

4.6

4.8

5.2

EBITDA

2.6

2.5

2.9

PAT

38.0

42.3

48.7

EPS (INR)

-16.9

11.2

15.2

Gr. (%)

286.5 300.6 330.1

BV/Sh (INR)

13.7

14.4

15.4

RoE (%)

15.7

14.1

15.3

RoCE (%)

14.3

12.9

11.2

P/E (x)

1.9

1.8

1.7

P/BV (x)

n

n

n

Quarterly Performance (Consolidated)

Y/E March

(Consolidated)

Revenue (USD m) Ex. forex &

bought outs

QoQ (%)

Revenue (INR m)

YoY (%)

GPM (%)

SGA (%)

EBITDA (INRm)

EBITDA Margin (%)

EBIT Ma rgi n (%)

Other i ncome

ETR (%)

Mi nori ty Interes t

PAT

QoQ (%)

YoY (%)

EPS (INR)

Hea dcount

Uti l excl . tra i nees (%)

Attri ti on (%)

Offs hore rev. (%)

Fi xed Pri ce (%)

1Q

99

-2.2

6,707

4.6

35.1

19.9

1,015

15.1

10.3

83

10.4

46.0

285

-63.9

-51.4

5.1

9,022

79.8

13.4

39.0

46.0

3.3

314bp

3.3

316bp

63bp

81bp

2.2

-1.1

-31bp

-27.1

44.6

-12.6

1470bp

-758bp

-0.2

70bp

21 July 2017

14

KPIT Technologies

BSE SENSEX

31,904

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

Avg Val, INRm

Free float (%)

S&P CNX

9,873

20 July 2017

Q1FY18 Results Update | Sector: Technology

CMP: INR134

TP: INR140(+4%)

Neutral

KPIT IN

197

n

26.4 / 0.4

147 / 106

3/-24/-17

147.7

83.3

n

Profitability resurrection pushed further ahead

Revenue beat driven by license sale:

KPIT’s 1QFY18 revenue growth of 3.5%

QoQ CC beat our estimate of 1.3%. Growth was primarily driven by ~50%

growth in Products & Platforms, which included a one-time license sale of

USD2m. Excluding this, revenue growth was largely in-line. The strong start to

the year has resulted in an ask rate of -2% to 0% to achieve its guidance of 6-

8%; hence we raise estimates towards achieving the higher end of the band.

Margin improvement yet elusive:

EBITDA margin declined by 100bp to 9.1%, a

200bp miss to our estimate of 11.1%, led by INR appreciation, visa expenses

and higher subcontracting expenses. The company wasn’t able to make use of

the multiple levers it has, especially utilization, as lateral hiring of ~150

employees was undertaken while overall growth momentum has been

subdued. Adjusted PAT at INR530m declined by 1.4% QoQ. The quarter

included an exceptional gain of INR25.5m, resulting out of the sale of minority

stake in Sankalp Semiconductors.

Operational inefficiencies continue to weigh upon profitability:

While growth

momentum has been soft, KPIT undertook aggressive fresher hiring in FY17,

impacting margins by >300bp. While this provides potential tailwinds in the

form of utilization, which is currently at 68%, visibility of revival has been

lowered, as 2Q would be impacted by wage hikes to the tune of 225-250bp.

This is expected to lead to two consecutive years of PAT decline; -20% in FY17E

and -11% in FY18E.

Revenue revival key to re-rating:

Amid sluggish revenue growth momentum and

execution issues, profitability is likely to remain under pressure. We have cut

earnings estimates by 18.7/14% for FY18/19E primarily because of revised

margin expectations. We are now modeling an EBITDA margin of 9.4% in FY18,

compared to 11.7% earlier. Inconsistent revenue performance and the

consequent volatility in profit are key drags on KPIT’s valuation. We maintain our

Neutral

rating, with a price target of INR140—discounting forward EPS by 10x

.

Financials & Valuations (INR b)

2017 2018E 2019E

Y/E Mar

33.2

35.3

38.7

Net Sales

3.5

3.3

4.2

EBITDA

2.1

2.1

2.7

PAT

11.9

10.6

13.1

EPS (INR)

-15.3 -11.2

23.7

Gr. (%)

79.2

85.6

98.7

BV/Sh (INR)

14.3

13.0

14.2

RoE (%)

15.9

13.8

16.5

RoCE (%)

11.2

12.6

10.2

P/E (x)

1.7

1.6

1.4

P/BV (x)

n

Estimate change

TP change

Rating change

n

21 July 2017

15

June 2017 Results Preview | Sector: Automobiles

Ashok Leyland

Bloomberg

Equity Shares (m)

M. Cap. (INR b)/(USD b)

52-Week Range (INR)

1,6,12 Rel Perf. (%)

AL IN

2926.5

291 /4.5

102 / 74

7 / 1 / -13

CMP: INR99

TP: INR123 (+24 %)

Buy

Financial Snapshot (INR b)

Y/E March

2017

2018E 2019E 2020E

Sales

EBITDA

NP

Adj. EPS (INR)

EPS Gr. (%)

BV/Sh. (INR)

RoE (%)

RoCE (%)

Payout (%)

Valuations

P/E (x)

P/BV (x)

Div. Yield (%)

21.6

4.7

1.6

17.4

4.1

9.5

2.0

13.4

3.4

7.5

2.3

10.4

2.8

5.5

2.5

200.2

22.0

13.4

4.6

8.1

20.9

23.3

21.8

33.9

253.6

28.2

16.7

5.7

24.4

24.2

25.3

22.2

35.0

290.0

33.5

21.8

7.4

30.1

29.0

27.9

25.5

30.3

347.5

41.0

28.0

9.6

28.5

35.5

29.6

0.0

26.2

n

Volumes declined 8.6% YoY (and 40% QoQ), as M&HCV sales

declined 17% YoY while LCV sales grew 21%, led by pre-buying

impact and postponement of purchase due to GST.

n

We expect realization to increase by 9.8% YoY (and 8% QoQ), led

by lower discounts and BS-4 related price hikes.

n

Net revenue is likely to grow 0.4% YoY (but decline 35% QoQ), as

lower volumes would be offset by higher realizations.

n

EBITDA margin is likely to contract 133bp YoY (and 104bp QoQ),

driven by higher RM costs and other expenses.

n

EBITDA should decline 11.4% YoY (and 41.5% QoQ) to ~INR4.3b.

n

However, lower tax rate would restrict adjusted PAT decline to

~29% YoY (and 52% QoQ) to INR2.1b.

n

We have revised our EPS estimates for FY18/FY19 by 4%/5%, led

by higher other income. The stock trades at an EV/EBITDA of 9.5x

FY18E and 7.5x FY19E. Maintain

Buy.

Key issues to watch

EV/EBITDA (x) 13.0

Ø

Ø

Ø

Ø

Update on CV demand post BS-IV and GST, and discount trends.

RM cost guidance and price hikes to mitigate the same.

Contribution of exports, spare parts and defense to revenues.

Capex and investment guidance for FY18.

Ø

Update on Hinduja Foundries and its profitability.

Quarterly Performance

Y/E March (INR m)

Total Volumes (nos)

Growth %

Realizations (INR '000)

% change

Net operating revenues

Change (%)

RM/sales %

Staff/sales %

Other exp/sales %

Total Cost

EBITDA

EBITDA Margins(%)

Other Income

Interest

PBT before EO Item

EO Exp/(Inc)

PBT

Tax

Effective Tax Rate (%)

Adj. PAT

Change (%)

E: MOSL Estimates

1Q

31,165

10.7

1,367

-0.9

42,588

9.7

68.7

8.4

11.6

37,768

4,820

11.3

385

338

4,154

0

4,154

1,246

30.0

2,908

130

FY17

2Q

33,446

-10.5

1,382

4.0

46,224

-6.9

67.8

8.0

12.6

40,859

5,365

11.6

316

339

4,146

0

4,146

1,202

29.0

2,944

14

3Q

32,838

6.2

1,375

3.4

45,163

9.8

69.4

8.7

11.8

40,621

4,542

10.1

258

453

2,396

0

2,396

778

32.5

1,618

-26

4Q

47,617

8.5

1,390

2.1

66,179

10.8

71.9

6.2

10.8

58,880

7,299

11.0

404

423

6,114

3,508

2,605

-2,157

-

4,279

-16

1QE

28,484

-8.6

1,501

9.8

42,755

0.4

69.8

9.2

11.0

38,485

4,269

10.0

375

375

2,869

0

2,869

803

28.0

2,066

-29

FY18E

2QE

3QE

40,246

42,591

20.3

29.7

1,493

1,501

8.1

9.1

60,108

63,927

30.0

41.5

70.5

70.5

7.1

7.0

11.0

11.7

53,234

57,068

6,874

6,860

11.4

10.7

425

475

300

225

5,574

5,670

0

0

5,574

5,670

1,561

1,588

28.0

28.0

4,013

4,082

36

152

4QE

57,483

20.7

1,510

8.6

86,794

31.2

70.9

5.5

11.8

76,572

10,223

11.8

555

195

9,121

0

9,121

2,554

-

6,384

49

FY17

145,066

3.4

1,380

2.3

200,187

5.7

69.7

7.6

11.6

178,161

22,025

11.0

1,363

1,554

16,809

3,508

13,301

1,070

8.0

13,447

11.6

FY18E

168,804

16.4

1,502

8.9

253,584

26.7

70.5

6.9

11.4

225,358

28,226

11.1

1,830

1,095

23,234

0

23,234

6,505

28.0

16,728

24.4

21 July 2017

16

June 2017 Results Preview | Sector: Financials

Dewan Housing Finance

Bloomberg

Equity Shares (m)

M. Cap. (INR b)/(USD b)

52-Week Range (INR)

1,6,12 Rel Perf. (%)

DEWH IN

313.2

137 / 2

468 / 204

5 / 62 / 92

n

n

n

n

n

CMP: INR436

n

TP: INR530 (+22%)

Buy

Financial Snapshot (INR m)

Y/E March

NII

PPP

Adj. PAT

EPS (INR)

EPS Gr. (%)

BV (INR)

RoAA (%)

RoE (%)

Payout (%)

Valuations

P/E (x)

P/BV (x)

P/ABV (x)

Div. Yield (%)

2017 2018E 2019E 2020E

18.2 22.7 28.1 34.0

16.2 20.4 25.1 30.2

9.3 11.6 14.2 17.0

29.6 37.0 45.4 54.3

18.5 25.0 22.7 19.6

252

279

315

357

1.2

1.2

1.3

1.3

14.4 13.9 15.3 16.2

15.7 23.2 23.2 23.2

14.7

1.7

1.7

0.9

11.8

1.6

1.6

1.7

9.6

1.4

1.4

2.1

8.0

1.2

1.2

2.5

Business growth has picked up well post the impact of

demonetizaton. We expect 15% YoY growth in disbursements to

drive 3.4%/20% QoQ/YoY growth in AUM in the quarter.

Margins are likely to remain largely stable at 3%. As a result, we

expect 21% YoY growth in NII in the quarter.

Calculated cost-to-income ratio should decline 160bp QoQ to

26.5%, driven by lower advertising and legal costs.

Asset quality is likely to remain stable, with GNPAs of 0.95%. We

factor in provisions of INR500m for 1QFY18.

Net profit is likely to grow 24% YoY to INR2.5b.

The stock trades at 1.6x FY18E and 1.4x FY19E BV. Maintain

Buy.

Key issues to watch for

Ø

Business growth trends and momentum, and management

commentary on the same.

Ø

Management view on margins due to change in liability mix.

Ø

Asset quality trends in non-retail and LAP segments.

Ø

Guidance on cost structure, going forward.

Quarterly performance

Y/E March

Interest Income

Interest Expenses

Net Interest Income

YoY Growth (%)

Fees and other income

Net Income

YoY Growth (%)

Operating Expenses

YoY Growth (%)

Operating Profits

YoY Growth (%)

Provisions

Profit before Tax

Tax Provisions

Profit after tax

YoY Growth (%)

Loan growth (%)

Borrowings growth (%)

Cost to Income Ratio (%)

Tax Rate (%)

E: MOSL Estimates

1Q

19,319

14,754

4,565

14.5

275

4,840

15.5

1,361

8.4

3,479

18.6

450

3,029

1,015

2,014

16.2

18.3

20.4

28.1

33.5

FY17

2Q

3Q

21,227

23,151

16,307

18,001

4,920

5,150

21.0

20.8

451

514

5,371

5,664

18.3

21.6

1,398

1,497

6.1

9.1

3,972

4,167

23.2

26.9

450

450

3,522

3,717

1,196

1,269

2,326

2,448

29.0

31.7

16.0

16.9

38.5

28.0

26.0

26.4

34.0

34.2

4Q

22,835

17,475

5,360

22.6

943

6,303

29.1

1,717

10.8

4,586

37.7

830

3,756

1,273

2,483

30.9

16.7

33.1

27.2

33.9

1QE

23,520

17,999

5,521

20.9

300

5,821

20.3

1,542

13.3

4,279

23.0

500

3,779

1,281

2,498

24.0

20.0

29.0

26.5

33.9

FY18E

2QE

3QE

24,225

25,194

18,359

18,542

5,866

6,652

19.2

29.2

450

500

6,316

7,152

17.6

26.3

1,617

1,695

15.6

13.2

4,700

5,457

18.3

31.0

400

800

4,300

4,657

1,458

1,579

2,842

3,078

22.2

25.8

20.0

20.0

7.0

11.0

25.6

23.7

33.9

33.9

(INR Million)

FY17

FY18

4QE

26,585

19,403

7,182

34.0

695

7,877

25.0

1,943

13.2

5,934

29.4

1,134

4,800

1,627

3,173

27.8

23.9

7.6

24.7

33.9

86,531

66,536

19,995

19.8

2,182

22,177

21.4

5,973

8.7

16,204

26.9

2,180

14,024

4,754

9,270

27.1

18.5

45.7

26.9

33.9

99,524

74,302

25,221

26.1

1,945

27,166

22.5

6,797

13.8

20,369

25.7

2,834

17,535

5,944

11,591

25.0

0.0

23.9

25.0

33.9

21 July 2017

17