22 August 2017
Market snapshot
Equities - India
Close
Chg .%
Sensex
31,259
-0.8
Nifty-50
9,754
-0.8
Nifty-M 100
17,782
-1.5
Equities-Global
Close
Chg .%
S&P 500
2,428
0.1
Nasdaq
6,213
-0.1
FTSE 100
7,319
-0.1
DAX
12,066
-0.8
Hang Seng
10,752
0.5
Nikkei 225
19,393
-0.4
Commodities
Close
Chg .%
Brent (US$/Bbl)
52
0.0
Gold ($/OZ)
1,287
-0.6
Cu (US$/MT)
6,551
1.5
Almn (US$/MT)
2,089
0.9
Currency
Close
Chg .%
USD/INR
64.1
0.0
USD/EUR
1.2
0.1
USD/JPY
109.1
0.1
YIELD (%)
Close
1MChg
10 Yrs G-Sec
6.5
0.0
10 Yrs AAA Corp
7.4
0.0
Flows (USD b)
21-Aug
MTD
FIIs
-0.3
-1.8
DIIs
0.1
1.7
Volumes (INRb)
21-Aug
MTD*
Cash
287
309
F&O
5,044
6,618
Note: YTD is calendar year, *Avg
YTD.%
17.4
19.2
23.9
YTD.%
8.5
15.4
2.5
5.1
14.4
1.5
YTD.%
-5.3
11.0
18.6
22.6
YTD.%
-5.5
11.5
-6.8
YTDchg
0.0
-0.2
YTD
7.0
5.8
YTD*
290
5,181
Today’s top research
idea
NTPC: Kudgi and Solapur projects on track
Earnings growth to accelerate; valuations attractive
v
NTPC has strong pipeline of CoDs. There is good visibility of 3.7GW of organic
and 1GW of inorganic growth at NTPCsa. This will add INR81b or 18.4% to
regulated equity in FY18.
v
In addition, 445MW will be added to commercial capacity of JVs in FY18. The
visibility of CoDs for FY19 too is improving, with expected commissioning of
2.65GW in FY18. We expect regulated equity to grow at ~20% CAGR and
consolidated PAT to grow at 12% CAGR over FY17-20. Capitalization would
start to outpace capex, boosting RoE and driving stock re-rating.
v
The stock trades at 1.3x FY19E BV. We value the stock at INR204/share even
after factoring 150bp regulatory risk to RoE from FY20 in our DCF model.
Buy.
Research covered
Cos/Sector
NTPC
Infosys
Marico
MindTree Consulting
Gateway Distriparks
Metals Weekly
Key Highlights
Kudgi and Solapur projects on track
The uncertainty discount over buyback premium
Confidence on long-term prospects intact
Well placed to address the Digital opportunity
Rail profitability impacted sharply by increased imbalance
Aluminum and zinc prices increase on supply measures
Piping hot news
ONGC board approves HPCL takeover
v
The board of state-owned Oil and Natural Gas Corp today gave 'in-principle'
approval to acquire government's 51.11 per cent stake in Hindustan
Petroleum Corp Ltd, the company said in a regulatory filing.
Chart of the Day: EcoScope (State-wise details of growth in tax collections, revenue expenditure
and capital expenditure, % YoY, #)
(% YoY)
Karnataka (KA)
Madhya Pradesh (MP)
Maharashtra (MH)
Punjab (PB)
Rajasthan (RJ)
Tamil Nadu (TN)
Uttar Pradesh (UP)
West Bengal (WB)
14 state governments
# April-June period
Tax collection
FY17
FY18
11.0
12.5
5.1
9.6
(4.5)
6.8
(2.8)
10.2
9.3
6.9
16.1
19.5
22.1
14.7
17.2
14.0
(21.2)
16.3
Revenue spending
FY17
FY18
13.5
10.5
10.3
36.6
12.1
(7.3)
4.0
22.4
44.2
14.7
10.5
2.7
15.5
0.1
1.8
11.1
15.6
11.0
Capital spending
FY17
FY18
14.1
34.4
46.6
128.2
1,349.1
19.3
(33.1)
55.6
94.7
59.5
(28.5)
6.6
(94.1)
(26.1)
88.9
(78.2)
(18.0)
(24.8)
Source: CAG, State government finance ministries, CGA, MOSL
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
Bank unions on all-India strike
today against consolidation
plans
Services at public sector banks are
expected to be hit on Tuesday
with employee unions going on a
nationwide strike. The employees
are protesting against the
proposed consolidation of public
sector banks…
2
As much as Rs 42,000 crore has already come in as taxes so far in the first
monthly filing under the new Goods and Services Tax (GST) regime and the
revenues are expected to swell further as the filing cycle closes this later
this week. A senior official said that about Rs 15,000 crore has come in as
Integrated-GST, which is levied on inter-state movement of goods, and
another Rs 5,000 crore by way of cess on demerit goods like cars and
tobacco…
GST impact: Government gets Rs 42000 cr tax so far in first filing
3
BSE to ‘compulsorily’ delist 200
firms, bar promoters, from 23
August
Leading stock exchange BSE will
‘compulsorily’ delist 200 firms this
week and bar their promoters
from the markets for 10 years as
trading in these shares have
remained suspended for over a
decade. All these companies will
be delisted from 23 August…
4
With Rosneft deal, Essar
reduces debt by Rs70,000
crore
The Essar group’s debt will reduce
by close to Rs70,000 crore with
the completion of the sale of Essar
Oil and related port assets, said
group director Prashant Ruia on
Monday…
5
Saddled with losses in its domestic
commercial and passenger vehicle
business, home-grown auto major
Tata Motors on Monday
reiterated its turnaround plan
focused on cost reduction, new
products, and bringing in
efficiencies in the supply chain…
Tata Motors to fuel business
with Rs 4,000-crore
investment
6
To stay afloat, defence
shipyards may be allowed to
borrow abroad
In an effort to revive the deeply
stressed defence shipyards and
boost the shipbuilding industry,
the Centre may soon allow them
to bring External Commercial
Borrowing (ECB) funds under the
automatic route to meet their
working capital requirements,
including refinancing…
7
Hospitals move GST Council for
relief from higher taxes on
inputs, services
Although healthcare is exempt
under the goods and services tax
(GST) regime, increased rates of
taxes on inputs such as medical
equipment, diagnostics, reagents,
labour and maintenance of
medical equipment have started
pinching healthcare providers,
who warn that the higher costs
may soon trickle...
22 August 2017
2

21 August 2016
Update
| Sector:
Utilities
NTPC
Buy
BSE SENSEX
31,525
S&P CNX
9,837
CMP: INR173
TP: INR204 (+18%)
Kudgi and Solapur projects on track
Earnings growth to accelerate; valuations attractive
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 (%)
NTPC IN
8245.5
179/143
4/-9/-8
1428.9
22.3
781
30.3
We visited two of NTPCsa’s (NTPC standalone) major greenfield sites at Solapur
and Kudgi, which will add INR73.6b or 17% to regulated equity. Our key takeaways:
Kudgi (3 x 800MW = 2,400MW): On track for full CoD in FY18
n
n
n
Financials Snapshot (INR b)
Y/E Mar
2017 2018E 2019E
Sales
820.8 849.9 974.4
EBITDA
218.3 249.2 323.0
NP
107.1 109.7 134.7
EPS (INR)
13.0
13.3
16.3
EPS Gr. (%)
5.4
2.4
22.9
BV/Sh. (INR )
118.7 126.6 136.9
P/E (x)
13.3
13.0
10.6
P/BV (x)
1.5
1.4
1.3
RoE (%)
11.5
10.8
12.4
RoCE (%)
7.0
7.3
8.8
Shareholding pattern (%)
As On
Jun-17 Mar-17 Jun-16
Promoter
69.7
69.7
70.0
DII
17.0
17.0
16.9
FII
10.2
10.4
11.0
Others
3.0
2.8
2.2
FII Includes depository receipts
Stock Performance (1-year)
NTPC
Sensex - Rebased
200
185
170
155
140
n
n
The project faced two major hurdles – land acquisition for approach rail line
and delays in coal handling plant due to financial stress of vendor. NTPC
overcame the first by building a viaduct (Exhibit 3) and the second by dealing
directly with the sub-vendors.
The project sources water from the Almatti dam, which is 43km away. There is
no shortage of water, as the dam has sufficient water.
The first unit of 800MW (Unit-1), which began commercial generation on July
31, 2017 (commercial operational date; CoD), was operating at 511MW (Exhibit
1). Though the ECR (energy charge rate) is ~INR3/kwh, it is getting scheduled in
the merit order. Coal is being sourced from SCCL under bridge linkages.
Unit-2 was commissioned on March 23, 2017. It has also achieved full load, but
CoD is pending due to delay in ramping up coal supply. CoD is planned in
September 2017.
Unit-3 is in the final stages of commissioning (Exhibit 2). The commissioning
and CoD is expected by December 2017. While this unit may be commissioned
by December, the CoD may spill over into FY19.
The first unit (660MW) was commissioned on April 7, 2017. The unit was
running at 264.4MW (Exhibit 4) at the time of our visit. There have been minor
leakages in the boiler tube, which are being addressed. Water is being sourced
through a 120km pipeline from nearby river. The railway siding too is
completed. Coal is being sourced from WCL through bridge linkage. Regular
coal supply is linked to MCL. CoD is expected latest by September 26. The ECR
is expected to be above INR2.5/kwh.
Unit-2: Boiler light-up is planned in March 2018. The unit is expected to be
synchronized in August 2018 and CoD is planned in December 2018.
NTPC has strong pipeline of CoDs. There is good visibility of 3.7GW of organic
and 1GW of inorganic growth at NTPCsa. This will add INR81b or 18.4% to
regulated equity in FY18. In addition, 445MW will be added to commercial
capacity of JVs in FY18. The visibility of CoDs for FY19 too is improving, with
expected commissioning of 2.65GW in FY18 (Exhibit 7).
We expect regulated equity to grow at ~20% CAGR and consolidated PAT to
grow at 12% CAGR over FY17-20. Capitalization would start to outpace capex,
boosting RoE and driving stock re-rating. The stock trades at 1.3x FY19E BV. We
value the stock at INR204/share even after factoring 150bp regulatory risk to
RoE from FY20 in our DCF model.
Maintain Buy.
Solapur (2 x 660MW): Expect unit-1 CoD by September 2017
n
n
Earnings growth to accelerate; valuations attractive
n
n
22 August 2017
3

21 August 2017
Update | Sector: Technology
Infosys
Buy
BSE SENSEX
31,259
S&P CNX
9,754
CMP: INR874
TP: INR1,030(+17%)
The uncertainty discount over buyback premium
Duality of Founder-Board feud and CEO hunt overshadow valuation attractiveness
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 (%)
INFO IN
2,285.6
1081 / 870
-8/-22/-26
1,998
31.2
3831
87.3
n
n
Financials Snapshot (INR b)
2017 2018E 2019E
Y/E Mar
Sales
684.9 706.5 781.8
EBITDA
186.1 184.6 203.4
PAT
143.8 142.2 153.6
62.9
62.2
67.2
EPS (INR)
6.6
-1.1
8.0
EPS Gr. (%)
302 333.5 361.9
BV/Sh. (INR)
22.0
19.6
19.3
RoE (%)
22.0
19.6
19.3
RoCE (%)
13.9
14.0
13.0
P/E (x)
2.9
2.6
2.4
P/BV (x)
Shareholding pattern (%)
As On
Jun-17 Mar-17 Jun-16
Promoter
12.8
12.8
12.8
DII
20.2
20.3
17.3
FII
38.0
38.8
41.0
Others
29.0
28.1
29.1
FII Includes depository receipts
Stock Performance (1-year)
Infosys
Sensex - Rebased
1,250
1,150
1,050
950
850
n
Following the turn of events over last week (CEO resignation, the pointed attack on
the founder by the Board and consequent announcement of buyback) – the fall in
INFO’s valuations (14% in two sessions) may be stemmed amid the buyback.
That said, return of business stability may be prolonged till INFO is settled on dual
fronts of: [1] New CEO search, and [2] Peace between the current Board and Mr.
Narayana Murthy, amid what is a battle out in the open. Given that Panaya
acquisition and the associated corporate governance issues have been at the center
of the saga, we believe there may be calls for significant Board changes as well.
These factors may limit upside in INFO despite attractive valuations. Our price target
of INR1,030 (15x forward earnings) implies a 17% upside, driving our Buy rating. We
will revisit the same as developments around the differences and appointment of the
new CEO unfold.
Back to square one with the exit of Dr. Vishal Sikka
#1: A call for changes to the Board?
n
At one end, the handling of matters related to corporate governance around
the Panaya acquisition and the severance concerning Rajiv Bansal/David
Kennedy have raised ire among founder investors. Consequently, there has
been a call for a change in the Board’s composition.
n
On the other hand, the remaining minority investors have suffered from the
unending saga. They would have hoped that the Board nips the problem at its
bud before it balloons to the proportion beyond repair. However, this did not
happen. Thus, albeit for different reasons, a collective call for a series of
changes is an understandable possibility following today’s developments.
#2: Key man risk plays out
n
The key man risk, in our view, had been the highest at INFO among the top-tier
IT. All initiatives driving INFO’s strategic execution – e.g. NIA, Zero Distance and
Edge suite of solutions – were initiated and being driven by Dr Sikka.
n
Dr Sikka was based out of Palo Alto and had made multiple prominent
additions to his core team in the region. His exit puts in question the base of
his replacement and continuation of the relevant core team members.
n
INFO’s financial performance was back to the industry’s top quartile, with
utilization at all-time high, attrition reduced, revenue productivity on the up
and margins in a tight band. The new CEO will thus have big boots to fill.
#3: The saga doesn’t end here
Message from INFO’s Board was clear that Mr Narayana Murthy will not be asked
to join in any capacity. On the other hand, NRN had been calling for changes to the
Board, which has not happened. With allegations and counter allegations after the
resignation, the business may take time to be distraction-free, in our view.
22 August 2017
4

#4: New CEO, more changes, inward focus
n
n
n
While the broader agenda of INFO’s transformation may not change, a seamless
transition to the new order appears unlikely to us.
We expect a new style of functioning, a new mix of top personnel more
amenable to his/her style of functioning, and more inward focus.
At the very least, one can expect a reasonable gestation until things have settled
and normal business priorities have ensued.
#5: Comforting clients is another challenge
n
Concern for INFO is the view clients will take on the whole situation, especially
where bread-n-butter contracts are up for renewal. We expect the big guns like
ACN, TCS and CTSH to make that extra push to lure them away from incumbent
INFO. Clients’ existing experience and relationship with these vendors, and
lowering switching costs, don’t help INFO’s case.
Valuation view
n
n
n
At 14/13x FY18/FY19E earnings, INFO now is the least expensive stock among
the top-4 Indian IT. That said, we do not rule out multi-pronged internal and
external pressure on the denominator.
Near-term valuation protection may come from the proposed buyback. On the
other side, the overhang of uncertainties and their possible consequences
enlisted above limit confidence on the potential upside.
Owing to the same, we have cut our target multiple to 15x from 17x earlier, and
our revised price target is INR1,030 (17% upside). Our Buy rating remains on
valuations; and we will revisit the same as developments around the differences
and appointment of the new CEO unfold.
22 August 2017
5

C
orner
O
ffice
Interaction with the CEO
21 August 2017
Confidence on long-term prospects intact
Targeting 8-10% volume CAGR in India
Key highlights:
n
Marico’s (MRCO) management appears optimistic about growth prospects from
2HFY18 onward.
n
Following GST rollout, the company expects to gain market share from
unorganized players over the longer term.
n
Key pillars of 15% sales CAGR are (1) rural opportunities, (2) premiumization, (3)
underpenetrated male grooming segment, (4) products enabling hair fall control,
and other such problem-solving products involving hair and (5) horizon 2 projects
like 'Beardo,’ which cater to the new-age customer. The 15% sales CAGR is
expected to be driven by volumes (8-10% in India), double-digit constant currency
growth in the overseas business, commodity-led inflation (3-4%), and
premiumization and new products.
n
We remain positive on MRCO's longer-term earnings growth prospects. Its
investments in distribution technology earlier and on analytics now are far ahead
of peers, and should serve it in good stead over the long term. However,
valuations at 38.7x FY19E EPS do not leave much room for upside, in our view. We
thus maintain our Neutral rating with a target price of INR355 (41x June 2019E
EPS, 10% premium to three-year average, led by likely return to ~20% EPS CAGR
post the GST hit in 1QFY18).
Marico
GST impact – the worst seems to be behind
n
n
n
n
n
Recovery has commenced in Canteen Stores Department (CSD; accounts for ~7%
of MRCO’s sales) in July, with things likely to be largely normal by end of 2QFY18.
Post that, only product categories that witnessed significant leakage from the CSD
channel are likely to suffer (as huge price arbitrage offered by CSD earlier no longer
exists).
Wholesale-dependent channels, particularly in the eastern part of the country, are
still affected.
Wholesalers have the willingness to comply with the new GST regulations, but
many challenges remain on this front (route for compliance, history of non-
compliance, etc.). Nevertheless, Mr Saugata Gupta (MD & CEO) believes that a large
part of wholesalers will survive as they gradually become compliant. However, a
small but considerable section of wholesalers may close down operations,
particularly those surviving because of the higher margins that they were able to
offer to retail trade due to non-compliance.
For MRCO, 35% of general trade (GT) sales come from wholesale trade, which is lower than many peers (45-
50%).
Organized players are still doing far better and gaining share from unorganized players, for whom the effect
has been far more severe.
Saugata leads the Company's
operations in India and the
International markets. He
joined Marico Limited in Jan’04
as head of Marketing. In 2007
he was elevated to become the
CEO of the Company's India
business. Saugata has 20 years
of experience primarily in
FMCG sector. Prior to joining
Marico, he was Chief of
Marketing and Group Sales at
ICICI Prudential, and was part
of the startup team that was
instrumental in establishing
ICICI Pru as the largest private
sector insurance firm in the
country. He started his career
with Cadbury's where he spent
9 years in various roles in Sales
and Marketing. His last role
was Marketing Manager -
Chocolates.
He
has
an
engineering degree from IIT
Kharagpur and a management
degree from IIM Bangalore.
Mr Saugata Gupta—
Managing Director
Longer-term impact of GST to be positive
n
According to Mr Gupta, sustained market share gains from unorganized players will take time. For categories
like Parachute, the unorganized segment constitutes 30-35% of the total market. A shift from unorganized to
organized trade will lead to steady volume growth every year.
6
22 August 2017

n
Management believes that after 1QFY18 (when uncertainty prevailed, particularly as rules on GST were clarified
only in April), a few FMCG players like MRCO have understood the need to recalibrate upwards their erstwhile
direct reach expansion targets.
Growth outlook from 2HFY18 is substantially brighter
n
n
n
n
n
n
n
Normalization in sales is likely in 2HFY18. In fact, after the 1QFY18 results, MRCO was among the first ones to
call out near normalization in 2QFY18 itself.
Management also stated in the post results concall that the companies with lower pipeline inventory and higher
sales channel automation will recover faster.
Monsoon progress has been reasonable, which means that rural demand should recover in 2HFY18, particularly
off a weak base of the past three years. For MRCO, 31% of sales are derived from rural areas, a proportion that
is increasing over the past few years.
Importantly, CPI and CPI food inflation are low, which means that food items are unlikely to take away wallet
share from consumer products.
2HFY18 will enjoy a demonetization-led weak base. However, MRCO may not benefit as much as others, as it
had a very good 4QFY17 with ~10% volume growth in India.
From a near-to-longer-term perspective, the one factor that Mr Gupta found most favorable for rural demand
recovery was the expansion of Direct Benefits Transfer (DBT) in FY17 and particularly FY18. Since DBT is directly
credited to the deserving population, it prevents system leakages, which were high earlier.
Management does not expect a recovery in the MENA region any time soon, although no severe incremental
impact may be witnessed YoY from 2HFY18. Apart from political and currency upheavals, the other problem is
that budgets for a few countries in the region are assuming crude at a much higher rate per barrel than the
current rate, which is unrealistic. MRCO has low exposure to the MENA region, contributing ~3% of its
consolidated sales.
Five drivers of doubling of sales by FY22:
1. Rural opportunity, which remains very high. For MRCO, proportion of rural sales, albeit rising, is only ~31%
of sales
2. Premiumization across categories
3. Male grooming
4. Products enabling hair fall control and other such problem-solving products involving hair
5. Horizon 2 projects like Beardo (e.g. MRCO is already prototyping some related products in association with
Enrich
Salons)
Ayurveda is part of hair fall and premiumization – the pillars of growth. MRCO wants to ensure efficacy of all
products under this category, and thus, is moving steadily but surely on product rollout.
Parachute and Value Added Hair Oil (VAHO) categories are actually getting a boost from modernization. As
more people are using modern treatments like hair coloring and hair straightening, the damage caused to the
hair is eventually encouraging usage of hair oils. Also, conditioners do not yield benefits beyond a few days,
unlike the right kind of hair oils. Pollution-related damage is also prompting consumers moving to/switching
back to good-quality hair oils.
With a choice between
build
and
buy,
MRCO in most cases chooses the former option. It has learnt a lot from
acquisitions made in the past on what, when and from whom to acquire.
Management stated that top line is targeted grow at ~15% CAGR over the next few years, aided by 8-10%
volume growth in India and double-digit constant currency growth in the international business.
Inflation-led price increase from 2010 to 2015 was ~6%. Management expects this to be a couple of percentage
points lower over the next five years. If inflation-led sales growth is higher than ~4%, then it will be an added
bonus. The company expects to make up for some of the slack from lower price-led growth through
premiumization and new product development. Inorganic growth opportunities are not part of the targeted
15% sales CAGR.
Targeting ~15% CAGR top-line growth; Primacy is on 8-10% volume growth
n
n
n
n
n
n
22 August 2017
7

n
EBITDA margins in India are likely to be ~20%, and ~17-18% at consolidated level. Operating leverage will be a
big factor driving margin upward in the international business, as investments in terms of personnel and
infrastructure have already been made.
Germany has the highest amount of private labels, followed by Switzerland and the UK in that order. The US has
relatively far lower share of private labels due to high brand power and brand investment in that country.
An analysis of markets where private labels have succeeded indicates that home products, household cleaning
products, some staples and foods are categories where private labels have had maximum impact. Very high
penetration and, more importantly, lack of innovation result in some categories being vulnerable to threat from
private labels.
In categories like hair care and skin care, it is far more difficult for private labels to make a dent.
In case of online retail, it is far easier and economical for online players to attain the desired scale rapidly with
the aid of incumbent brands rather than competing against them.
Power of the brands that FMCG players have, as well as power of the systems, processes and talent that FMCG
players have, is often underestimated.
One thing management firmly believes that FMCG companies/brick-and-mortar retailers in India can learn from
online players/modern retailers is the usage of data analytics for cross-selling. FMCG companies like MRCO have
been working with large local retailers for a few years, but data analytics still lags well behind the best-of-breed
e-commerce and brick-and-mortar retailers globally. With the implementation of technology across its
distribution channels, MRCO gets a humongous amount of data that is ripe to be analyzed. The company has
also started making efforts recently to stay one step ahead of peers by trying to harness the utility of this data
for better decision-making.
In hair colors:
While the company is the market leader in Bangladesh and a leading player in South Africa, it
believes that it does not yet have a right-to-win in this category in India.
In Amla hair oil:
The company had already guided toward the end of FY17 that it will attain market leadership
by end-FY18. Its market share of ~40% in this category is already breathing down the neck of Dabur (~41%
share).
On cooling oils:
Management believes that the product has nothing to do with hair, and if the company enters
the category, it will be through a new brand and not through its incumbent hair oil brands.
Kerala distributor issue:
In Kerala, distribution space is unionized unlike other states. Distributors in the state
are protesting against high compliance costs under GST, and thus, seeking higher trade margins. If their
demands are not met, they have threatened to cut retailer margins. Management clarified that compliance cost
increase is only marginal, and thus, demand by the unionized distributors is unreasonable. One of the FMCG
peers has taken a tough stance and refused to meet demands, irrespective of near-term loss of sales. MRCO
expects this situation to ease out in the next few months
.
What could be the likely disruptors to the growth story – private labels, online retail?
n
n
n
n
n
n
Other interesting points
n
n
n
n
22 August 2017
8

MindTree Consulting
BSE SENSEX
31,259
S&P CNX
9,754
21 August 2017
Update | Sector: Technology
CMP: INR462
TP: INR450(-3%) Upgrade to Neutral
Well placed to address the Digital opportunity…
…but status quo on near-term challenges
n
We attended MindTree’s (MTCL) analyst meet, where the company highlighted its
roadmap to capitalize on the Digital opportunity.
n
Its differentiated approach in Digital is led by its holistic approach of [1] reimagining
customer experience, [2] modernizing ecosystem and processes, and [3] harnessing
the power of data.
n
While several challenges, especially pressure in top customers and a steep decline in
profitability continue to loom over the near-term, 40% revenue from Digital makes
for a favorable long-term positioning. Over the past month, the stock has corrected
by ~10%, factoring these in. Upgrade to Neutral.
n
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 (%)
Financials Snapshot (INR b)
Y/E Mar
2017
MTCL IN
168
579 / 400
-2/-11/-30
77.6
1.2
317
86.4
2018E
2019E
Net Sales
EBITDA
PAT
EPS (INR)
Gr. (%)
BV/Sh (INR)
RoE (%)
RoCE (%)
P/E (x)
P/BV (x)
52.4
7.2
4.2
24.9
-30.6
153.0
16.8
20.1
20.4
3.3
54.4
6.7
4.5
28.7
15.4
156.1
17.3
18.2
17.6
3.2
61.7
8.4
5.4
32.9
14.6
170.9
20.1
23.5
15.4
3.0
n
Shareholding pattern (%)
As On
Jun-17 Mar-17 Jun-16
Promoter
13.6
13.7
13.7
DII
6.9
7.1
7.2
FII
39.9
39.2
40.9
Others
39.6
40.1
38.2
FII Includes depository receipts
Stock Performance (1-year)
Mindtree
Sensex - Rebased
760
660
560
460
360
n
n
n
Accelerated market shifts:
The Indian IT sector has been witnessing a rapid
change in traditional models, which are being transformed by the shift to
packaged applications, insourcing/localization, introduction of new
technologies like automation, IoT and cognitive, and new developments on the
political front. These forces make way for a play in Digital, led by innovation
and a partnership-led approach with customers.
Getting ready for the next phase…:
MTCL unleashed its 3.0 strategy, which
focuses on driving change to maintain Digital leadership. It is based on the
pillars of:
Ø
Accelerated growth through a focus on Digital packages and platforms
Ø
Focused innovation for run and grow by creating a bi-modal sales, delivery
and operating model
Ø
Automation that balances itself with talent transformation
Ø
A consulting-first approach to drive competitive advantage
…building organizational readiness:
In order to win in the Digital-game, MTCL
has been investing in [1] Building a Digital workplace, [2] Digital technology
leadership, [3] Challenger sales team, and [4] Delivery centers near clients.
Signs of success are being demonstrated by the increased TCV of deal wins and
the progress on a multi-year, multi-million win with a global CPG company for
the implementation of a CRM and data analytics platform.
Differentiated proposition in Digital:
MTCL has been aiming to become the
anchor partner for its clients’ Digital journeys. The blueprint for focus on
elevating the customer experience includes [1] reimagining customer
experiences, [2] modernizing the ecosystem and processes and [3] harnessing
the power of data. It intends to execute on this strategy with a structured
account focus, proactive selling of identified market plays, strengthening
partnerships and offerings, development of IP and building consulting services
to shape Digital transformation.
Salesforce, an example of huge opportunity:
The addressable market for
Salesforce is expected to double by FY21 as it aggressively releases upgrades
for existing products, launches extensions in newer areas and taps into newer
business models. It is estimated that every dollar spent on Salesforce creates
9
22 August 2017

an ecosystem opportunity of USD4. Magnet360, with its strong partnership with
Salesforce and ability to expand client relationships through the MTCL network,
is well placed to continue tapping this opportunity.
n
Revenue growth outlook downgraded in 1QFY18:
MTCL revised its FY18
revenue growth outlook to high-single-digits from low-double-digits, after a
slow start in the organic business and lack of predictability in segments such as
Salesforce and Bluefin. Pressures in multiple top accounts have been dragging
the overall performance, despite the strength seen in deal wins.
n
Near-term profitability challenges:
MTCL also revised its expectations around
profitability, from an earlier estimate of margin expansion in FY18, to that
happening only in the standalone segment. Consolidated margins will likely be
lower due to continued losses in the recently acquired companies. MTCL
however has several medium-long term levers in the form of acquisition
profitability, higher solution sales, cost optimization, higher utilization, tighter
pyramid control, higher offshore component and scale in Digital, which should
help recoup part, if not all, of the lost profitability.
n
Valuation view:
MTCL has been facing challenges, which are not limited to the
performance of its acquired entities (only ~7% of revenues), but span across
standalone profitability and revenues from top accounts. These issues drive our
expectation of 7% revenue growth in FY18 and 135bp EBITDA margin
contraction, which comes post an already dismal FY17. We had downgraded
MTCL to Sell post the 1QFY18 result at a price of 507, signifying 11% downside.
But in the past one month stock has corrected ~10%, nearing our TP. With the
near-term softness now embedded in the price, we upgrade to Neutral from
Sell. Our price target of INR450 discounts forward earnings by 13x.
22 August 2017
10

Gateway Distriparks
BSE SENSEX
31,259
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
9,754
GDPL IN
109
28.2 / 0.4
325 / 206
1/0/-20
41
74.8
21 August 2017
1QFY18 Results Update | Sector: Logistics
CMP: INR237
TP: INR272(+15%)
Buy
Rail profitability impacted sharply by increased imbalance
GDPL reported EBITDA (Rail + CFS) of INR450m (est. of INR531m; -19% YoY,
-14% QoQ). PAT (before associate/minority interests) of INR180m (-20% YoY,
-19% QoQ) was below our estimate of INR250m due to lower margins in the Rail
segment. CFS profitability was largely in line, as the better performance in
standalone operations was offset by the weaker subsidiary performance.
Rail profitability impacted by higher EXIM imbalance
n
Rail reported EBITDA of INR252m (est. of INR340m; -22% YoY, -24% QoQ).
n
Container volumes stood at 51,000TEU (est. of 54,472; -2% YoY, -12% QoQ).
n
Rail realization stood at INR32,810/TEU (-6% YoY, -12% QoQ). EBITDA/TEU
declined 20% YoY (14% QoQ) to INR4,947 (est. of INR5,800), led by a sharp
increase in EXIM imbalance on account higher imports, lower productivity of
trains in one of the routes, and higher discounts in export direction.
CFS profitability impacted by lower dwell times
n
Consol. CFS EBITDA stood at INR198m (in-line; -15% YoY, +3% QoQ).
n
Consol. volume stood at 95,977 TEU (est. of 95,000; +4% YoY, +5% QoQ).
n
Realizations stood at INR10,310/TEU (est. of 10,200; -1% YoY, flat QoQ),
while EBITDA/TEU was at INR2,062 (est. of INR2,100; -18% YoY, -2% QoQ).
Valuation and view
Our FY17-20 volume CAGR assumptions for the Rail/CFS divisions stand at
~16%/10%. We value GDPL based on SOTP-based fair value of INR272 /share,
implying 15% upside, valuing CFS business at 11x FY20E earnings, 40% stake in
Snowman at 50% discount to market value, and Rail segment at 12x FY20E
EV/EBITDA. The stock trades at 14.7x FY20E EPS of INR16.1. Maintain
Buy.
(INR Million)
FY18 Var. vs
1QE
est
2,757
-3%
-0.9
2,226
-1%
531
-15%
19.3
-4
192
5%
71
-66%
60
-90%
328
-30%
78
-37%
23.8
250
-28%
11.2
9.1
69
-32%
181
-27%
181
-27%
-2.9
6.6
Financials & Valuations (INR b)
Y/E March
2018E 2019E 2020E
Sales
12.0
14.3
17.3
EBITDA
2.3
2.9
3.8
NP
1.0
1.4
1.7
EPS (INR)
9.0
12.4
16.1
EPS Gr. (%)
32.1
38.3
29.3
RoE (%)
9.4
12.4
15.2
RoCE (%)
10.0
13.8
18.2
P/E (x)
26.3
19.0
14.7
EV/EBITDA (x)
11.6
9.1
6.9
Div. Yield (%)
1.7
2.5
3.6
Estimate change
TP change
Rating change
Quarterly Performance
Y/E March
FY17 FY18E
FY17
FY18
(Consolidated)
1Q*
2Q*
3Q*
4Q*
1Q*
2QE
3QE
4QE
Net Sales
2,782 2,857 2,876 3,077
2,661 3,035 3,089 3,194
11,592 11,978
YoY Cha nge (%)
5.9
10.1
7.7
19.5
-4.4
6.2
7.4
3.8
10.7
3.3
Tota l Expendi ture
2,227 2,276 2,289 2,554
2,211 2,481 2,493 2,526
9,346
9,711
EBITDA
555
581
587
523
450
554
595
668
2,246
2,267
Margins (%)
19.9
20.3
20.4
17.0
16.9
18.2
19.3
20.9
19.4
18.9
YoY Cha nge (%)
-20
-9
-5
-8
-19
-5
1
28
-11
1
Depreci a ti on
195
194
192
189
202
212
212
218
770
844
Interes t
51
88
50
61
24
71
70
-72
251
93
Other Income
40
80
59
59
6
52
52
26
238
135
PBT
349
379
403
332
229
323
366
548
1,463
1,465
Ta x
124
127
146
109
49
77
81
131
506
339
Ra te (%)
35.6
33.6
36.2
32.8
21.5
23.8
22.3
24.0
34.6
23.1
PAT before minority / profit of assoc.
225
252
257
223
180
246
284
416
957
1,126
YoY Cha nge (%)
13.0 -15.0 -11.9
-5.6
-20.1
-2.4
10.6
86.5
-6.5
17.7
Ma rgi ns (%)
8.1
8.8
8.9
7.3
6.8
8.1
9.2
13.0
8.3
9.4
Les s : Mi nori ty/Add: Profi t of As s o.
39
79
54
31
47
36
36
59
203
178
Reported PAT
186
173
203
192
133
210
248
358
754
948
Adj PAT
186
173
203
192
133
210
248
358
754
948
YoY Cha nge (%)
-47.8 -43.5 -34.3 -27.5
-28.7
21.3
22.1
86.5
-31.2
25.8
Ma rgi ns (%)
6.7
6.0
7.1
6.2
5.0
6.9
8.0
11.2
6.5
7.9
E: MOSL Es ti ma tes , *Indi ca tes a ddi ti on of Ra i l a nd CFS deta i l s a s provi ded a nd not a ctua l cons ol i da ted number
22 August 2017
11

Metals Weekly
Aluminum and zinc prices increase on supply measures
n
21 August 2017
Update
n
n
n
n
Indian Steel: Long product (TMT Mumbai) prices were up ~2% WoW. Sponge iron prices were up ~3% WoW,
while domestic scrap prices were up ~1% WoW. Private iron ore mines raised prices by INR150/300 per ton for
fines/lumps. Pellet prices were higher. Domestic HRC prices were up ~3% WoW, while imported HRC price
offers were up ~2% WoW.
Raw materials: Iron ore prices (China cfr) were up ~4% WoW. Chinese iron ore port inventories were lower.
Thermal coal prices were down 4% WoW. Coking coal prices were down ~2% WoW. China's pellet import
prices were unchanged.
Europe: HRC prices were unchanged. CIS HRC export prices were up ~5% WoW. Rotterdam scrap prices were
up ~2% WoW.
China: Local HRC prices were up ~2% WoW, while rebar prices were up ~1% WoW. Export HRC/rebar prices
were up ~3%/1% WoW.
Base metals: Aluminum (cash LME) prices were up ~3% WoW and ~11% since the end of July on slowing
supply growth in China. Production rose by just ~1% YoY in China in July. Zinc (cash LME) rose 8% WoW to
USD3,117/t on tightening ore availability due to environment inspections in China. Lead was up ~3% WoW.
Copper was up ~2% WoW. Crude oil (Brent) prices were up ~1% WoW.
22 August 2017
12

In conversation
1. Margin will be in double-digit by end of year, says Tech
Mahindra; Mr. Vineet Nayyar, VC
n
n
n
n
Fairly positive that there will be an accretion in margin going ahead.
Infosys has always been a trailblazer for the industry. Hope company will
continue to do business as it is.
Margin will be in double-digit by end of year.
Not looking aggressively for any acquisitions currently.
2. Company has lowest NPAS amongst all financing companies,
says REC; Mr. PV Ramesh, CMD
n
n
n
n
n
n
Comptroller and Auditor General (CAG) pulled up company and PFC earlier this
month for failing to comply with RBI norms on loans to power companies, citing
lack of due diligence during credit appraisal.
CAG report a joint report for both PFC and company, which are sister
organizations.
Several observations do not relate to company.
Private sector exposure at 14% of total portfolio.
Company has lowest NPAs amongst all the financial companies.
Restructured book comprises of projects that are delayed in commissioning.
3. Enough opportunity in smaller towns; target 25 plus stores in
FY18: V-Mart; Lalit Agarwal, CMD
n
n
n
Longer wedding season and preponed Eid festivities aided growth
There is enough opportunity in smaller towns.
Continue to target more than 25 stores for this year.
4. Margin will be in double-digit by end of year, says Tech
Mahindra; Vineet Nayyar, VC
n
n
n
n
n
Fairly positive that there will be an accretion in margin going ahead
Speaking about Infosys, has always been a trailblazer for the industry.
Hope Infosys will continue to do business as it is
On business front, margin will be in double-digit by end of year.
Not looking aggressively for any acquisitions currently
22 August 2017
13

From the think tank
1. Infosys fight isn’t Tata Redux. It’s a lot worse
n
The similarities are hard to miss. Last October, the 79-year-old Ratan Tata
staged a coup to oust his successor Cyrus Mistry, 49, as chairman of the $100
billion conglomerate that bears his family’s name. Last week, the 50-year-old
Vishal Sikka quit Bangalore-based Infosys Ltd after constant attacks by founder
N.R. Narayana Murthy, 71, who had snagged the younger man as CEO from SAP
SE just three years ago. It’s both easy and wrong, however, to paint the
machinations at Infosys as Tata redux. Unlike Ratan Tata, who was in control of
the group holding company’s board, Murthy—and the other co-founders, if they
side with him—are just shareholders taking on a hostile board from the outside.
That won’t work. Either they bulk up their 13% ownership share to fight, or they
sell out.
2. Aviation woes are not just about Air India
n
Volume 2 of Economic Survey 2016-17 highlights aspects which show that
divestment of Air India is only one of the many problems that the aviation sector
is trying to deal with. It talks about reforms such as privatisation/disinvestment
of Air India, creation of aviation hubs and reconsidering the 0/20 rule as ways to
improve Indian airlines’ share in the international market. (The 0/20 rule says
that any airline that sets aside 20 per cent of its fleet or has 20 aircraft can fly on
international routes.) All these are valid points. There is a reason why foreign
airlines have been able to walk away with a lion’s share of Indians travelling
abroad. In the 1980s, the Government allowed only Air India and a few foreign
airlines to operate to a restricted number of airports.
3. Crop insurance falls short of promise
n
Appala Venkatesh is a farmer owning and farming in 1.25 acres of his land in
Laxmapur village of Telangana. By mid-June, he was ready with his nursery for
paddy, expecting monsoon to hit by mid-uly. Ideally, Venkatesh should have
transplanted from the nursery to the regular field in a month. Considering the
dry spells, he postponed the sowing by 15 more days. Finally, about 50 per cent
of the nursery was transplanted as he could not afford to waste the entire
season. He took a leap of faith that there would be rains and that his modest
borewell would pump some water as he knew that he was running out of time.
India Meteorological Department released a forecast of normal rainfall across
the country during the current monsoons. Unfortunately, as we talk, monsoons
in central India and South India are deficient by 2 per cent and 18 per cent,
respectively.
22 August 2017
14

4. Credit growth decline in India: here is the untold story
n
There is no denying the fact that credit growth continues to decline. In the
current fiscal, there has been an incremental credit de-growth of Rs 1.5 lakh
crore. However, interspersing RBI’s sectoral deployment of bank credit data
with that of sectors filtered from listed corporate loan funds data, we find that
(1) credit flow in certain sectors to have flown away from listed sectors (based
on listed companies data) and (2) traditional lending source has also undergone
a structural change. Here is our understanding of how the credit numbers tell
the story. Going by the sectoral deployment of bank credit, non-food credit
grew by 28.3% or a CAGR of 9% during last three years, i.e. FY14-17. Within non-
food credit, loans to personal segment as well as agriculture and allied activities
put together grew by around 56% in the same period, yielding a CAGR of 16%.
Barring the above two segments, the other non-food credit grew at a snail’s
pace at CAGR of 5.2%. Clearly, credit to industry barely grew during the last
three years!
International
5. Business can fill the trump leadership vacuum
n
Are we entering a new era of the statesman chief executive? It’s a question
worth asking after the disbanding of President Donald Trump’s two major
business councils last week. Many of the chiefs involved, who harboured mixed
feelings about engaging with the president, did so because they hoped to push
through a business friendly agenda that included tax and educational reform as
well as major infrastructure projects and stay in the good graces of the White
House, historically a net positive for corporate prospects. What has become
clear over the past few days is that being close to this “business friendly”
president is not necessarily good for business.
22 August 2017
15

Click excel icon
for detailed
valuation guide
Rs
Valuation snapshot
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E FY19E
26.9
19.8
20.2
31.2
40.1
17.8
37.0
32.7
16.2
21.9
21.0
20.1
23.7
26.7
16.7
39.9
24.2
22.6
21.4
90.0
19.7
25.6
19.7
19.7
26.1
21.1
29.9
28.2
9.4
18.6
23.7
14.9
NM
10.9
8.4
8.6
7.0
23.6
18.8
14.5
18.0
35.5
27.2
21.3
20.5
11.9
49.9
32.9
13.9
23.5
15.6
5.0
4.9
4.7
6.4
7.6
2.8
16.0
7.8
3.1
3.4
7.8
3.2
2.7
6.3
2.2
11.3
4.8
2.2
2.6
2.4
2.1
5.2
2.2
1.3
4.9
0.7
4.7
4.5
1.1
3.7
3.4
0.9
0.6
0.7
0.5
1.0
0.3
0.8
1.3
0.4
0.9
9.6
4.9
3.0
4.2
1.8
18.3
6.9
4.2
3.9
3.1
4.3
4.3
4.3
5.6
6.8
2.5
11.9
6.5
2.6
3.1
6.8
2.9
2.4
5.5
1.9
9.4
4.2
2.0
2.1
2.3
1.7
4.5
2.0
1.2
4.2
0.7
4.2
3.2
1.0
3.2
3.0
0.9
0.6
0.7
0.5
0.9
0.3
0.8
1.2
0.4
0.8
7.8
4.0
2.7
3.5
1.6
15.0
6.2
3.7
3.4
2.6
20.3
23.1
25.3
16.2
15.8
16.9
37.1
20.8
10.6
13.9
35.7
14.2
6.4
20.3
9.8
25.6
17.1
6.9
10.8
9.5
9.9
18.3
10.2
5.6
15.4
-27.0
13.8
12.3
9.5
18.9
11.5
4.0
-6.7
4.2
1.4
10.1
-8.4
3.6
-0.2
2.7
0.9
21.7
15.1
12.0
18.0
14.4
32.5
18.9
25.5
12.4
19.4
17.3
23.2
22.2
19.2
18.0
14.8
37.0
21.6
17.3
14.1
34.6
13.9
10.8
20.1
12.3
25.7
17.4
9.3
11.4
2.6
10.0
18.8
8.9
6.3
17.3
3.5
15.0
13.6
10.8
18.3
12.5
6.1
-5.2
6.2
5.8
10.9
4.6
3.2
7.0
3.0
4.6
24.3
16.1
13.3
18.6
14.1
33.0
19.3
28.2
15.6
18.2
19.9
27.0
24.0
22.8
20.7
17.3
35.4
23.3
18.3
15.0
31.5
14.9
11.5
22.8
26.6
33.6
22.3
14.7
11.8
8.7
10.5
19.6
9.5
6.9
18.5
7.2
16.3
13.9
12.7
19.5
14.2
12.4
3.0
9.1
7.3
11.2
5.4
5.9
11.4
6.1
8.3
25.9
28.0
15.6
19.0
15.6
32.8
18.4
31.3
19.1
18.5
Company
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Not Rated
Buy
Buy
Buy
CMP
(INR)
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
30
15
18
19
0
21
14
11
22
34
-4
18
17
45
6
28.0
4.6
132.3
26.2
473.1
93.3
612.7
23.5
20.0
8.1
169.1
54.3
5.4
248.6
19.8
11.7
760
986
102
118
2,771 3,281
1,137 1,353
21,945 21,994
1,676 2,029
31,523 35,854
957
1,059
602
732
201
269
3,968 3,818
1,375 1,618
233
-
7,514 8,819
375
542
575
612
28.2
37.9
27.1
5.2
7.0
22.5
137.2 163.6 20.9
36.5
50.5
43.5
547.2 705.7 46.4
94.2 126.8 18.0
852.9 1,092.8 51.5
29.3
37.9
40.8
37.1
45.8
30.2
9.2
11.0
24.8
189.3 199.1 23.5
68.5
82.4
25.3
9.9
11.8
43.5
281.7 374.5 30.2
22.4
59.8
18.9
14.4
23.7
49.0
28.1
21.8
8.4
1.7
5.4
68.2
14.9
2.8
61.9
3.8
32.4
18.0
2.9
92.3
38.1
10.4
6.1
6.8
82.1
17.0
3.2
76.8
8.2
41.0
23.7
3.7
114.5
32.2
25.5
30.9
22.0
30.7
19.2
23.4
33.7
NM
36.1
42.7
12.4
23.5
29.4
23.7
NM
17.4
35.3
10.1
NM
22.1
923.3
16.2
101.4
50.4
41.2
28.7
25.0
15.2
61.0
37.1
17.4
32.8
17.0
Neutral
Neutral
Buy
Buy
Buy
Buy
Neutral
Buy
Neutral
Buy
Under Review
Buy
Buy
494
179
156
106
1,744
293
55
1,615
81
969
507
27
1,718
545
192
201
139
2,000
366
62
1,800
91
1,153
-
34
2,133
10
8
29
31
15
25
13
11
13
19
26
24
15.4
7.0
5.0
4.8
56.8
15.3
2.3
47.9
-31.3
26.8
11.9
2.2
73.0
Buy
Neutral
Neutral
Neutral
Buy
Neutral
Buy
Buy
Neutral
142
140
327
54
297
120
138
275
131
198
149
360
49
382
150
184
341
140
39
7
10
-9
29
25
34
24
7
6.0
-14.8
18.8
1.5
29.3
-31.6
6.2
0.3
8.1
9.5
-11.2
30.1
6.4
34.4
17.1
5.8
14.6
9.0
20.8
6.6
47.0
8.6
38.3
21.4
11.0
26.8
19.1
Buy
Neutral
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Neutral
1,692
866
708
1,150
449
496
1,739
1,199
172
649
1,800
820
925
1,400
630
450
1,900
1,350
200
708
6
-5
31
22
40
-9
9
13
16
9
33.6
21.0
24.6
46.0
29.6
8.1
46.8
69.0
5.2
38.2
47.6
31.8
33.3
56.0
37.7
9.9
52.9
86.3
7.3
41.6
62.9
68.7
44.3
67.3
47.1
12.1
59.0
108.4
10.6
48.9
22 August 2017
16

Company
Manappuram
M&M Fin.
Muthoot Fin
PFC
Repco Home
REC
Shriram City Union
STF
Aggregate
Capital Goods
ABB
Bharat Elec.
BHEL
Blue Star
CG Cons. Elec.
CG Power & Indu.
Cummins
GE T&D
Havells
K E C Intl
L&T
Pennar Eng.
Siemens
Solar Ind
Suzlon Energy
Thermax
Va Tech Wab.
Voltas
Aggregate
Cement
Ambuja Cem.
ACC
Birla Corp.
Dalmia Bharat
Grasim Inds.
India Cem
J K Cements
JK Lakshmi Ce
Ramco Cem
Orient Cem
Prism Cem
Shree Cem
Ultratech
Aggregate
Consumer
Asian Paints
Britannia
Colgate
Dabur
Emami
Godrej Cons.
GSK Cons.
HUL
ITC
Jyothy Lab
Reco
Not Rated
Buy
Buy
Neutral
Buy
Neutral
Buy
Buy
CMP
(INR)
95
404
451
119
643
161
2,191
959
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
-
8.6
10.8
12.5
459
14
7.1
13.9
17.8
550
22
29.5 38.2
44.2
117
-1
25.7 27.2
30.2
800
24
29.1 34.5
39.3
134
-17
31.4 35.0
40.4
2,800
28
84.3 121.7 164.1
1,330
39
55.6 80.0 102.4
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E FY19E
11.0
8.8
2.4
2.2
24.0 25.9 26.9
57.0 29.1
3.6
3.4
6.5
12.0 14.2
15.3 11.8
2.8
2.3
19.4 21.5 21.2
4.6
4.4
0.8
0.7
17.9 17.0 16.8
22.1 18.7
3.5
3.0
17.4 17.5 17.0
5.1
4.6
1.0
0.8
19.9 19.1 19.1
26.0 18.0
2.9
2.5
11.7 15.0 17.6
17.3 12.0
1.9
1.7
11.7 15.0 16.9
20.4 17.1 3.4
3.0
16.8 17.6 18.1
68.6
25.9
58.1
56.9
48.2
19.8
33.3
65.7
49.6
25.1
26.6
12.7
71.9
41.2
25.5
28.8
20.7
34.4
34.5
56.5
49.6
32.3
66.7
16.3
31.7
29.5
59.4
24.3
NM
407.2
44.6
41.7
36.5
54.0
57.5
50.8
41.9
41.7
47.9
34.4
60.8
33.6
33.4
60.3
24.1
27.3
41.8
44.8
39.9
31.9
40.5
43.3
22.7
25.1
9.9
56.5
35.1
18.3
29.6
17.8
31.7
30.5
39.7
36.0
23.2
37.7
15.5
22.3
25.0
42.5
24.2
34.0
31.9
37.2
43.8
31.3
51.2
49.6
44.1
39.3
41.1
42.0
34.0
52.0
30.4
42.0
8.7
5.3
0.9
9.3
26.2
1.2
6.5
9.3
9.0
4.8
3.1
1.3
6.7
7.6
-1.5
3.9
3.4
5.3
3.9
2.9
3.9
2.2
4.6
1.8
1.1
4.0
3.5
4.2
3.1
5.9
7.8
4.6
3.5
14.3
18.9
23.0
11.0
14.3
11.6
7.2
38.7
7.6
6.3
7.6
4.1
0.9
8.7
19.4
1.2
6.1
8.2
8.1
4.1
2.9
1.2
5.8
6.5
-1.6
3.6
2.9
4.7
3.5
2.7
3.7
2.1
4.1
1.6
1.0
3.5
3.2
3.7
2.9
5.1
6.5
4.2
3.2
13.0
15.6
21.8
9.5
12.2
9.0
7.1
37.4
7.5
6.4
12.7
20.6
1.6
18.0
76.4
6.2
21.2
12.4
18.2
21.2
12.2
10.2
9.3
19.8
NM
14.3
16.8
18.0
11.2
5.1
7.9
7.3
7.2
11.5
3.4
14.4
6.0
19.0
-3.2
1.4
18.4
11.6
9.6
28.5
36.9
50.4
28.4
35.8
24.6
22.2
65.6
23.5
21.1
12.6
17.0
3.4
21.4
49.7
3.0
19.7
21.5
18.6
19.5
12.1
11.6
10.3
19.8
-8.8
12.7
17.6
15.8
11.6
7.0
10.6
9.2
11.6
10.9
4.7
14.8
7.9
16.1
8.8
17.0
19.1
10.1
10.3
26.7
34.3
50.8
26.0
32.0
24.2
21.1
73.1
24.8
15.1
15.8
16.9
3.5
29.6
49.7
3.7
22.8
22.7
20.7
20.9
12.9
12.6
13.7
20.9
-11.0
12.8
17.4
16.0
12.6
7.9
13.1
12.2
13.4
13.9
6.6
17.5
12.1
17.5
12.8
22.9
19.1
14.0
12.7
28.1
34.5
58.2
26.3
33.9
22.8
22.6
82.8
26.3
18.6
Sell
Buy
Sell
Neutral
Buy
Neutral
Buy
Neutral
Neutral
Neutral
Buy
Not Rated
Neutral
Neutral
Not Rated
Neutral
Buy
Sell
1,352
179
125
733
225
81
882
376
474
297
1,127
90
1,282
850
16
888
615
532
1,200
210
100
650
240
80
1,170
395
455
295
1,345
-
1,355
900
-
830
800
430
-11
17
-20
-11
6
-2
33
5
-4
-1
19
6
6
-7
30
-19
19.7
6.9
2.1
12.9
4.7
4.1
26.5
5.7
9.6
11.9
42.3
7.1
17.8
20.6
0.6
30.8
29.8
15.5
22.4
7.4
4.6
17.5
5.0
2.0
27.7
9.3
10.9
13.1
44.8
9.1
22.7
24.2
0.9
30.0
34.6
16.8
31.6
8.3
4.9
26.1
6.4
2.5
35.0
11.3
13.8
16.4
51.7
11.2
33.0
30.0
1.0
33.2
39.8
19.1
Buy
Neutral
Buy
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Buy
276
308
1,790 1,622
950
1,150
2,587 3,282
1,107 1,079
178
201
995
1,277
413
519
663
806
150
185
111
140
17,131 22,360
4,010 4,936
12
-9
21
27
-3
13
28
26
22
23
26
31
23
4.9
7.0
36.1 49.8
29.4 40.9
38.8 68.7
67.9 71.3
5.6
8.0
33.7 39.7
7.0
9.7
27.3 27.4
-1.6
4.4
0.3
3.5
384.4 460.4
96.1 91.5
8.2
65.0
58.9
89.9
102.7
11.8
54.4
16.4
34.4
7.1
5.6
547.8
138.8
Neutral
Buy
Buy
Neutral
Buy
Neutral
Sell
Buy
Neutral
Neutral
1,135
4,236
1,078
304
1,106
905
5,376
1,193
282
375
1,200
4,660
1,285
315
1,310
995
4,500
1,285
280
395
6
10
19
4
18
10
-16
8
-1
5
21.0 22.2
73.7 85.3
21.2 24.4
7.2
7.7
26.5 26.9
18.9 21.5
156.1 158.1
19.6 22.9
8.4
9.3
11.2
8.9
26.5
104.6
29.8
9.1
33.1
24.7
182.1
27.3
10.3
11.0
22 August 2017
17

Company
Reco
Marico
Neutral
Nestle
Sell
Page Inds
Buy
Parag Milk
Neutral
Pidilite Ind.
Neutral
P&G Hygiene
Buy
Prabhat Dairy
Not Rated
United Brew
Neutral
United Spirits
Neutral
Aggregate
Healthcare
Alembic Phar
Neutral
Alkem Lab
Neutral
Ajanta Pharma
Buy
Aurobindo
Buy
Biocon
Sell
Cadila
Buy
Cipla
Neutral
Divis Lab
Neutral
Dr Reddy’s
Neutral
Fortis Health
Buy
Glenmark
Neutral
Granules
Buy
GSK Pharma
Neutral
IPCA Labs
Neutral
Jubilant Life
Buy
Lupin
Buy
Sanofi India
Buy
Shilpa Medicare
Buy
Strides Shasun
Buy
Sun Pharma
Buy
Syngene Intl
Not Rated
Torrent Pharma
Neutral
Aggregate
Logistics
Allcargo Logistics Buy
Blue Dart
Not Rated
Concor
Neutral
Gateway Distriparks Buy
Gati
Not Rated
Transport Corp.
Not Rated
Aggregate
Media
Dish TV
Buy
D B Corp
Buy
Den Net.
Neutral
Ent.Network
Neutral
Hind. Media
Buy
HT Media
Neutral
Jagran Prak.
Buy
Music Broadcast
Buy
PVR
Buy
Siti Net.
Neutral
Sun TV
Neutral
Zee Ent.
Buy
CMP
TP
% Upside
(INR)
(INR) Downside
317
355
12
6,618 5,740
-13
17,001 19,600
15
238
245
3
813
810
0
8,151 9,082
11
133
-
801
875
9
2,541 2,525
-1
FY17
6.3
118.0
238.7
3.6
16.7
144.9
3.5
8.7
26.7
EPS (INR)
FY18E FY19E
6.8
8.2
115.1 133.6
294.7 398.4
9.1
12.5
18.1
20.6
155.8 181.6
3.5
6.4
10.1
15.0
34.5
51.5
P/E (x)
FY17 FY18E
50.4 46.4
56.1 57.5
71.2 57.7
66.0 26.1
48.6 45.0
56.3 52.3
37.6 38.1
92.1 79.5
95.0 73.6
46.5 42.1
23.8
23.9
19.9
17.7
32.1
33.3
35.3
15.7
26.6
13.9
15.2
17.4
69.3
25.5
18.9
16.5
30.9
39.3
27.9
17.6
34.1
22.7
22.3
16.3
40.0
32.2
34.8
12.9
16.2
29.5
77.2
18.5
NM
69.6
10.4
12.4
16.0
57.3
62.4
NM
28.9
22.1
25.1
24.6
22.0
15.5
33.7
26.4
26.6
18.5
22.7
65.7
13.9
15.4
50.9
24.7
14.9
22.3
29.9
26.1
19.0
30.6
27.5
23.4
24.4
14.2
31.6
29.0
21.8
6.8
13.0
24.5
58.3
15.9
NM
59.5
9.5
11.5
14.0
39.5
41.5
NM
25.2
34.6
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY19E
17.6 15.1 36.7 34.9 37.7
21.2 19.7 39.0 35.5 38.1
28.5 22.8 40.0 39.6 43.1
3.0
2.7
6.0
11.0 13.3
12.6 10.3 28.2 25.2 23.5
46.5 37.1 45.3 78.9 74.0
1.9
1.8
5.2
4.9
8.5
9.2
8.4
10.4 11.0 14.7
19.1 13.3 21.3 18.0 20.3
12.8 11.9 27.6 28.2 29.3
5.1
5.1
6.5
4.3
4.1
7.0
3.6
3.5
2.6
1.5
3.7
3.2
10.1
2.1
3.2
3.1
5.3
4.8
3.0
3.0
6.9
4.9
3.8
2.4
17.7
3.4
2.0
1.8
2.5
3.6
16.6
4.3
1.5
4.4
1.8
0.8
2.3
3.8
6.2
3.5
6.8
8.4
4.5
4.4
5.2
3.4
3.7
5.8
3.2
3.2
2.4
1.3
3.0
2.2
11.7
2.0
2.7
2.8
4.9
4.1
2.6
3.1
5.6
4.3
3.4
2.2
13.5
3.2
2.0
1.6
2.1
3.3
12.9
3.9
1.7
4.1
1.5
0.8
2.3
3.5
5.4
3.7
6.3
7.3
23.0
23.4
37.7
27.6
12.3
23.0
10.2
23.5
9.6
11.3
24.7
21.1
14.5
8.6
18.1
20.6
17.1
14.4
10.7
18.5
22.2
23.8
16.9
12.6
50.5
10.8
5.9
12.4
16.7
12.2
24.1
25.5
-12.0
6.7
19.0
7.1
17.6
11.2
10.4
-23.5
23.6
24.7
19.0
19.2
26.5
24.8
11.1
23.9
12.1
18.1
11.3
2.1
21.6
17.7
23.0
8.2
19.5
13.2
16.6
17.0
14.7
10.0
22.5
19.5
14.1
16.0
48.6
11.3
9.2
19.4
17.8
13.7
24.9
25.8
-5.3
7.2
17.3
6.9
16.5
9.3
14.0
-4.1
25.0
22.6
20.4
20.5
25.9
22.1
14.5
26.3
13.2
19.4
14.8
4.9
20.9
18.8
30.9
12.2
19.6
16.0
18.1
20.4
20.2
14.7
20.7
21.5
16.3
16.8
46.8
12.4
11.2
25.4
18.6
15.2
99.2
26.6
0.7
10.7
17.3
6.4
17.4
12.4
18.2
6.2
28.8
24.5
514
1,811
1,160
696
327
473
561
622
1,933
144
596
126
2,381
410
699
923
3,992
550
900
461
444
1,250
510
1,830
1,606
850
330
555
520
680
2,500
220
775
200
2,500
430
905
1,125
4,820
805
1,300
515
-
1,350
-1
1
38
22
1
17
-7
9
29
53
30
59
5
5
29
22
21
46
44
12
8
21.6 20.5
75.7 73.5
58.4 52.8
39.3 44.9
10.2
9.7
14.2 17.9
15.9 21.1
39.7 33.6
72.6 85.1
10.3
2.2
39.3 42.9
7.2
8.2
34.4 46.8
16.1 16.6
37.0 47.1
55.8 41.4
129.1 133.6
14.0 21.1
32.3 47.4
26.1 15.1
13.0 16.1
55.2 53.4
25.5
91.6
64.2
50.0
14.2
24.1
26.0
40.0
125.2
5.6
51.7
11.5
54.9
26.8
56.7
56.3
160.6
30.4
74.8
23.3
18.0
67.3
160
4,100
1,223
237
108
274
212
-
1,214
313
-
-
32
-1
32
9.8
11.2
102.5 129.9
38.0 42.1
6.8
10.9
8.4
15.9
16.9 21.0
13.3
163.2
48.6
13.8
23.9
25.9
76
377
82
795
268
92
173
368
1,282
25
719
510
106
450
90
928
350
90
225
469
1,628
32
860
630
39
19
9
17
31
-2
30
27
27
27
20
23
1.0
20.4
-8.6
11.4
25.9
7.4
10.8
6.4
20.5
-1.8
24.9
23.1
1.3
23.7
-2.7
13.4
28.3
7.9
12.4
9.3
30.9
-0.3
28.5
14.7
4.3
27.6
0.3
21.7
33.6
8.1
14.1
14.0
46.9
0.4
35.9
18.9
22 August 2017
18

Company
Aggregate
Metals
Hindalco
Hind. Zinc
JSPL
JSW Steel
Nalco
NMDC
SAIL
Vedanta
Tata Steel
Aggregate
Oil & Gas
BPCL
GAIL
Gujarat Gas
Gujarat St. Pet.
HPCL
IOC
IGL
MRPL
Oil India
ONGC
PLNG
Reliance Ind.
Aggregate
Retail
Jubilant Food
Titan Co.
Aggregate
Technology
Cyient
HCL Tech.
Hexaware
Infosys
KPIT Tech
L&T Infotech
Mindtree
Mphasis
NIIT Tech
Persistent Sys
Tata Elxsi
TCS
Tech Mah
Wipro
Zensar Tech
Aggregate
Telecom
Bharti Airtel
Bharti Infratel
Idea Cellular
Tata Comm
Aggregate
Utiltites
Coal India
Reco
CMP
(INR)
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E FY19E
39.0 29.8 5.5
5.0
14.0 16.7 21.3
13.9
14.8
NM
15.8
18.8
12.2
NM
19.3
16.4
20.4
10.3
16.6
37.6
21.3
10.7
9.6
28.6
8.3
14.1
9.6
20.1
16.2
12.6
138.2
68.1
74.5
16.6
14.6
19.4
13.9
9.3
13.6
18.5
15.2
12.7
16.6
29.2
18.9
14.0
17.0
15.2
16.8
37.7
26.0
NM
23.2
38.9
16.0
10.2
12.9
NM
10.6
20.0
9.8
NM
11.8
9.6
14.0
14.5
14.2
20.6
16.8
12.7
11.2
25.2
13.1
9.8
9.6
16.4
13.6
12.7
93.4
57.9
62.2
14.4
14.1
16.9
13.7
10.5
12.5
16.1
14.7
11.5
14.4
24.4
18.9
12.7
15.9
15.2
16.6
1.7
4.0
0.4
2.5
1.3
1.7
0.7
1.8
1.9
1.7
3.2
1.7
6.4
2.3
3.3
1.9
6.0
2.1
0.8
0.9
4.2
1.6
1.7
11.3
12.9
12.8
2.7
3.7
4.7
2.9
1.4
4.7
3.0
2.0
1.7
2.6
9.2
5.6
2.3
2.7
2.4
3.8
1.4
4.3
0.4
2.1
1.3
1.6
0.7
1.7
1.7
1.6
2.8
1.6
5.1
2.1
2.8
1.7
5.1
1.9
0.7
0.9
3.6
1.4
1.5
10.4
11.8
11.7
2.4
3.2
4.1
2.6
1.3
3.7
3.0
2.1
1.6
2.5
7.4
6.0
2.1
2.6
2.2
3.8
2.4
4.0
1.5
9.8
2.7
5.8
14.0
24.4
-7.9
17.3
7.2
12.8
-6.7
9.7
15.7
8.2
32.4
9.6
17.8
11.6
32.4
21.2
21.0
31.4
5.7
10.1
23.2
11.6
13.3
8.2
20.6
17.2
16.2
27.5
26.5
22.0
14.3
40.4
16.8
13.2
13.7
17.0
37.1
32.6
18.4
16.9
17.2
22.9
15.3
32.0
-4.9
21.3
6.5
15.2
-9.1
14.8
18.6
11.4
20.4
11.3
27.6
13.2
23.6
16.0
21.9
15.5
7.5
9.4
23.7
12.3
12.2
11.1
21.3
18.9
16.6
24.9
25.7
20.0
13.0
33.0
17.3
14.5
14.4
17.9
33.5
31.1
17.4
16.1
15.0
22.8
15.4
35.1
0.6
20.8
7.7
15.6
-5.3
18.4
16.2
13.3
21.4
12.4
27.4
14.2
21.7
15.8
20.9
17.0
8.0
10.9
25.5
12.3
12.7
14.0
22.2
19.6
17.3
23.8
23.1
19.8
14.2
29.4
20.1
16.2
15.4
20.7
32.2
33.5
16.9
16.1
17.9
22.1
3.8
19.4
-21.7
33.6
2.8
44.2
Buy
Neutral
Buy
Buy
Neutral
Buy
Sell
Buy
Neutral
225
291
132
234
69
121
59
293
622
309
301
194
297
63
180
30
316
591
37
4
47
27
-9
48
-50
8
-5
16.2
19.7
-20.9
14.8
3.7
10.0
-6.2
15.1
37.9
22.0
22.6
-15.8
21.9
3.5
12.4
-7.7
24.8
65.1
26.3
26.9
2.0
25.7
4.2
12.1
-4.2
33.1
64.3
Neutral
Sell
Sell
Neutral
Buy
Buy
Neutral
Sell
Buy
Buy
Buy
Neutral
498
376
765
187
434
413
1,257
123
273
158
229
1,566
515
346
691
171
510
458
1,152
113
316
195
274
1,499
3
-8
-10
-9
17
11
-8
-8
16
24
20
-4
48.3
22.6
20.4
8.8
40.7
43.0
44.0
14.8
19.3
16.4
11.4
96.7
34.3
26.5
37.2
11.1
34.1
36.7
49.9
9.4
27.9
16.5
14.0
115.5
41.3
31.3
46.1
13.3
36.3
40.4
56.3
11.7
31.1
19.7
17.9
128.1
Sell
Neutral
1,383
615
850
565
-39
-8
10.0
9.0
14.8
10.6
20.7
12.6
Buy
Neutral
Neutral
Buy
Neutral
Buy
Sell
Neutral
Neutral
Buy
Buy
Neutral
Buy
Neutral
Buy
508
873
265
874
111
754
462
590
484
625
1,643
2,521
431
288
791
600
950
250
1,030
140
880
450
610
540
750
1,992
2,350
490
270
950
18
9
-6
20
26
17
-3
3
12
20
21
-7
14
-6
20
30.6 35.4
59.8 61.8
13.7 15.7
62.9 63.7
11.9 10.6
55.5 60.2
24.9 28.7
38.9 40.3
38.0 42.3
37.7 43.3
56.3 67.4
133.4 133.6
30.9 34.0
16.9 18.1
52.1 51.9
41.9
65.9
16.5
69.5
13.1
68.0
32.9
43.0
48.7
52.0
79.7
147.7
36.8
19.1
70.0
Buy
Buy
Buy
Buy
419
386
89
631
490
480
110
775
17
24
24
23
11.1
14.9
-1.1
27.2
4.3
17.9
-10.9
8.7
6.6
20.4
-11.3
26.1
96.5
2.5
21.5
4.6
NM
1.3
72.5 11.3
215.4 2.7
13.1
6.1
6.7
2.5
16.2 19.8
-1.6 -17.3
132.2 14.5
6.9
1.2
37.8
44.2
Buy
239
275
15
14.9
18.3
19.1
22 August 2017
19

Company
Reco
CESC
Buy
JSW Energy
Sell
NTPC
Buy
Power Grid
Buy
Tata Power
Sell
Aggregate
Others
Arvind
Neutral
Avenue Supermarts Neutral
Bata India
Under Review
Castrol India
Buy
Century Ply.
Neutral
Coromandel Intl
Buy
Delta Corp
Buy
Dynamatic Tech
Buy
Eveready Inds.
Buy
Interglobe
Neutral
Indo Count
Neutral
Info Edge
Buy
Inox Leisure
Sell
Jain Irrigation
Under Review
Just Dial
Neutral
Kaveri Seed
Buy
Kitex Garm.
Buy
Manpasand
Buy
MCX
Buy
Monsanto
Buy
Navneet Education Buy
PI Inds.
Buy
Piramal Enterp.
Buy
SRF
Buy
S H Kelkar
Buy
Symphony
Sell
TTK Prestige
Neutral
V-Guard
Neutral
Wonderla
Buy
CMP
(INR)
942
63
172
220
80
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
1,360
44
51.9 88.9
99.3
49
-22
3.8
3.4
2.7
204
19
13.0 13.3
16.3
262
19
14.2 17.4
20.6
68
-15
5.2
6.4
6.7
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E FY19E
18.2 10.6
1.2
1.1
6.5
10.6 10.8
16.4 18.6
1.0
1.0
6.3
5.3
4.2
13.2 12.9
1.4
1.4
11.5 10.8 12.4
15.4 12.6
2.3
2.0
16.2 17.3 17.8
15.5 12.6
1.8
1.7
11.2 13.9 12.1
15.1 13.1 2.3
2.1
14.9 15.9 16.6
29.5
120.9
49.5
28.3
29.1
26.3
56.2
31.9
23.4
27.6
8.4
59.5
69.3
17.3
20.8
28.4
12.4
64.3
40.0
28.4
20.2
22.4
36.0
17.2
34.5
51.7
47.8
49.8
48.6
28.2
72.9
42.6
26.8
25.7
18.1
29.7
19.1
22.1
19.9
12.2
42.9
28.8
12.6
19.7
15.9
10.4
40.5
35.5
23.3
16.6
24.6
25.1
18.5
32.9
34.9
45.8
39.7
28.5
2.6
15.1
6.5
32.1
7.9
4.4
4.3
4.4
7.6
22.7
2.5
5.7
4.0
1.5
2.8
3.7
3.3
4.0
3.7
8.0
5.1
6.3
3.4
2.7
4.5
19.2
8.6
11.9
4.4
2.5
13.2
5.8
28.8
6.5
3.8
2.9
3.6
6.2
20.2
2.1
5.2
3.5
1.4
2.5
3.9
2.7
3.8
3.5
7.2
4.3
5.3
3.1
2.4
4.1
16.9
7.9
9.7
4.0
10.3
9.1
12.0
17.9 19.3 23.0
13.9 14.4 15.8
115.2 113.3 106.1
31.1 27.7 29.6
17.5 22.5 23.4
8.1
12.3 12.6
15.1 20.7 24.3
37.7 30.8 30.1
86.2 107.5 137.7
34.8 18.6 18.3
10.2 12.7 13.1
5.9
12.5 16.2
8.6
11.7 14.8
14.8 13.4 13.7
13.6 23.3 27.4
29.8 28.6 27.6
7.3
8.5
13.5
10.2 10.2 14.5
31.6 32.5 34.5
26.8 27.8 28.2
32.8 23.4 22.9
9.8
13.0 16.4
16.6 13.7 16.0
13.7 12.9 15.2
43.3 51.6 54.5
19.5 18.0 20.7
27.4 26.9 28.8
9.5
14.8 17.5
365
927
669
387
253
437
172
2,159
301
1,269
109
933
231
96
363
542
231
816
994
2,448
157
749
2,612
1,482
250
1,224
6,316
178
340
375
882
-
527
323
523
237
3,334
358
1,312
129
1,130
240
-
465
738
394
926
1,300
3,295
226
894
3,044
1,648
298
1,288
5,281
167
393
3
-5
36
28
20
38
54
19
3
19
21
4
28
36
71
13
31
35
44
19
17
11
19
5
-16
-6
16
12.4
7.7
13.5
13.6
8.7
16.6
3.1
67.6
12.9
46.0
13.0
15.7
3.3
5.5
17.5
19.1
18.6
12.7
24.8
86.2
7.8
33.4
72.6
85.9
7.2
23.7
132.1
3.6
7.0
12.9
12.7
15.7
14.4
9.8
24.1
5.8
112.9
13.6
63.9
8.9
21.8
8.0
7.6
18.5
34.0
22.1
20.2
28.0
105.1
9.4
30.4
104.1
80.2
7.6
35.1
137.8
4.5
11.9
18.6
17.6
19.4
15.0
12.9
29.0
7.9
166.7
16.3
93.7
10.8
24.7
12.0
10.0
21.1
41.0
26.2
30.9
42.2
126.7
11.3
35.8
144.6
103.0
9.9
42.9
176.1
6.0
16.0
22 August 2017
20

MOSL Universe stock performance
Company
Automobiles
Amara Raja
Ashok Ley.
Bajaj Auto
Bharat Forge
Bosch
CEAT
Eicher Mot.
Endurance Tech.
Escorts
Exide Ind
Hero Moto
M&M
Mahindra CIE
Maruti Suzuki
Tata Motors
TVS Motor
Banks - Private
Axis Bank
DCB Bank
Equitas Hold.
Federal Bank
HDFC Bank
ICICI Bank
IDFC Bank
IndusInd
J&K Bank
Kotak Mah. Bk
RBL Bank
South Indian
Yes Bank
Banks - PSU
BOB
BOI
Canara
IDBI Bk
Indian Bk
OBC
PNB
SBI
Union Bk
NBFCs
Bajaj Fin.
Bharat Fin.
Capital First
Cholaman.Inv.&Fn
Dewan Hsg.
GRUH Fin.
HDFC
Indiabulls Hsg
L&T Fin.Holdings
LIC Hsg Fin
Manappuram
M&M Fin.
Muthoot Fin
PFC
Repco Home
REC
STF
Shriram City Union
1 Day (%)
-4.6
-1.3
-1.6
-2.9
-0.3
-1.7
0.2
-2.8
-3.9
-3.6
-0.4
0.3
-1.0
-1.4
-1.6
-1.5
0.7
-2.4
-1.6
-2.3
-0.5
0.0
-2.0
-0.3
-1.0
-1.4
-3.2
-3.2
-0.1
-3.5
-2.5
-1.6
-0.4
-2.2
-2.4
-3.2
-1.4
-0.7
-0.9
-1.2
-3.0
-0.5
-0.2
2.9
0.2
-0.2
-2.2
-1.5
11.4
-2.8
-2.8
-3.5
-2.9
-3.4
-1.2
1.4
1M (%)
-9.4
-0.8
-1.6
0.2
-8.6
-9.4
9.2
7.5
-8.1
-7.0
7.8
-0.6
-4.9
-0.2
-19.4
0.8
-8.5
-8.4
-7.2
-9.7
2.4
-2.7
-9.4
3.0
-3.7
-2.9
-4.5
-5.6
8.8
-12.2
-9.8
-6.8
-8.5
-9.7
-20.0
-12.9
-5.4
-15.2
4.6
10.8
-6.8
1.1
-2.1
4.3
5.9
5.3
12.4
-12.4
-9.8
14.1
-0.3
-7.5
-19.4
-11.7
-0.5
-7.1
12M (%)
-17.4
17.5
-5.5
35.4
-8.4
93.7
44.9
97.8
12.9
18.1
-5.4
27.1
53.4
-26.6
84.6
-16.0
53.2
-16.0
59.6
40.1
26.9
2.6
35.8
12.1
24.9
33.5
28.5
-12.2
23.5
26.3
-23.8
29.8
1.7
7.5
6.2
-3.5
66.3
10.1
-3.0
3.3
70.6
61.8
27.0
49.8
82.3
17.2
8.2
20.0
29.1
0.0
-22.4
36.5
-24.5
-5.1
Company
Capital Goods
ABB
Bharat Elec.
BHEL
Blue Star
CG Cons. Elec.
CG Power & Inds Sol.
Cummins
GE T&D
Havells
K E C Intl
L&T
Pennar Eng.
Siemens
Solar Ind
Suzlon Energy
Thermax
Va Tech Wab.
Voltas
Cement
Ambuja Cem.
ACC
Birla Corp.
Dalmia Bharat
Grasim Inds.
India Cem
J K Cements
JK Lakshmi Ce
Ramco Cem
Orient Cem
Prism Cem
Shree Cem
Ultratech
Consumer
Asian Paints
Britannia
Colgate
Dabur
Emami
Godrej Cons.
GSK Cons.
HUL
ITC
Jyothy Lab
Marico
Nestle
Page Inds
Parag Milk
Pidilite Ind.
P&G Hygiene
Prabhat Dairy
United Brew
United Spirits
Healthcare
Alembic Phar
Alkem Lab
Ajanta Pharma
Aurobindo
Biocon
Cadila
Cipla
1 Day (%)
-0.8
-1.7
-3.7
2.6
0.2
-0.4
-1.7
-0.8
-0.7
0.7
-0.4
-2.6
-1.9
-1.6
-4.7
-0.9
-2.4
-1.0
0.4
0.0
0.1
-0.7
1.0
-2.6
-1.1
-1.1
-2.8
-3.1
-0.6
-0.9
0.1
-0.4
-0.3
0.8
-2.3
0.6
-1.6
-0.4
-0.5
0.1
-0.4
-0.8
-0.4
-0.3
0.9
-0.8
-0.8
1.6
0.0
-2.4
-0.3
1.1
-3.8
-1.3
-0.5
-0.1
-0.9
1M (%)
-7.5
4.6
-13.9
8.6
10.3
-5.3
-12.4
15.0
2.6
1.3
-4.5
-27.3
-5.8
-5.0
-15.7
-4.2
1.0
6.7
4.0
4.6
0.4
-2.1
4.4
-14.6
1.2
-10.9
-1.8
-5.9
-9.1
-3.2
-4.0
-1.8
10.6
0.7
0.4
0.6
-5.7
-1.6
3.0
-2.2
-2.3
-3.8
-2.9
1.2
-6.4
1.2
1.2
-2.6
-1.6
-6.2
-4.8
2.1
-20.7
-7.0
-18.3
-10.4
-0.9
12M (%)
16.2
45.4
-12.0
47.9
35.3
-6.7
-1.4
15.4
14.3
116.8
13.4
-50.6
-1.9
42.9
-2.1
5.5
6.3
39.3
-0.1
6.0
40.7
80.8
43.7
34.9
25.5
-6.1
17.0
-10.7
0.7
1.4
2.4
2.0
26.6
12.3
1.5
-6.1
17.3
-14.7
30.8
12.4
32.2
5.2
-1.6
18.7
-25.0
15.9
22.3
68.4
0.1
12.4
-20.5
17.7
-41.1
-8.9
16.0
27.0
0.9
22 August 2017
21

MOSL Universe stock performance
Company
Divis Lab
Dr Reddy’s
Fortis Health
Glenmark
Granules
GSK Pharma
IPCA Labs
Jubilant Life
Lupin
Sanofi India
Shilpa Medicare
Strides Shasun
Sun Pharma
Syngene Intl
Torrent Pharma
Logistics
Allcargo Logistics
Blue Dart
Concor
Gateway Distriparks
Gati
Transport Corp.
Media
Dish TV
D B Corp
Den Net.
Ent.Network
Hind. Media
HT Media
Jagran Prak.
Music Broadcast
PVR
Siti Net.
Sun TV
Zee Ent.
Metals
Hindalco
Hind. Zinc
JSPL
JSW Steel
Nalco
NMDC
SAIL
Vedanta
Tata Steel
Oil & Gas
BPCL
GAIL
Gujarat Gas
Gujarat St. Pet.
HPCL
IOC
IGL
MRPL
Oil India
ONGC
PLNG
Reliance Ind.
Retail
Jubilant Food
Titan Co.
1 Day (%)
-1.8
-2.5
-1.1
-2.5
-0.6
-0.4
-0.7
-0.9
-1.9
-1.0
-2.5
-0.7
-2.0
-2.1
-1.4
-3.0
0.7
-2.5
-3.0
-1.5
-1.2
-2.4
0.5
-1.4
0.6
-0.7
5.7
0.1
-2.0
-3.0
0.8
-3.0
-0.5
-2.2
-1.0
-3.5
-1.6
-0.8
0.5
-0.6
-1.8
-0.6
-1.0
-1.6
-0.7
1.6
-1.9
-3.3
-1.7
-1.1
-4.8
-2.0
-0.1
-0.6
-0.9
-1.6
1M (%)
-13.7
-30.0
-12.3
-14.5
-11.1
-6.2
-14.6
-6.8
-19.3
-4.3
-19.5
-16.6
-20.1
-7.9
-1.7
-9.3
-8.0
3.6
-10.9
-13.3
-14.6
-2.3
0.2
4.3
-12.3
-5.1
8.0
-1.3
0.8
-6.1
-2.3
-10.7
-8.0
5.0
3.8
-3.6
9.0
-1.9
-1.1
-4.7
9.2
12.5
6.5
-0.4
0.4
7.9
18.2
8.5
10.0
-2.6
-3.4
-4.3
11.5
-1.3
10.4
13.2
12M (%)
-52.3
-35.8
-23.6
-31.0
-4.6
-23.6
-20.3
37.7
-41.5
-8.1
-4.7
-8.8
-41.2
5.3
-19.4
-16.1
-25.2
11.9
-16.5
-29.2
27.5
-19.3
-7.4
-3.9
15.3
0.2
16.7
-6.3
4.6
-31.7
49.2
1.4
42.0
39.1
50.0
30.6
45.5
11.4
19.7
63.5
58.5
29.1
37.7
12.9
23.9
57.6
45.9
79.8
54.4
-2.8
-2.3
33.3
54.3
12.8
53.0
Company
Technology
Cyient
HCL Tech.
Hexaware
Infosys
KPIT Tech
L&T Infotech
Mindtree
Mphasis
NIIT Tech
Persistent Sys
Tata Elxsi
TCS
Tech Mah
Wipro
Zensar Tech
Telecom
Bharti Airtel
Bharti Infratel
Idea Cellular
Tata Comm
Utiltites
Coal India
CESC
JSW Energy
NTPC
Power Grid
Tata Power
Others
Arvind
Avenue Super.
Bata India
Castrol India
Century Ply.
Coromandel Intl
Delta Corp
Dynamatic Tech
Eveready Inds.
Interglobe
Indo Count
Info Edge
Inox Leisure
Jain Irrigation
Just Dial
Kaveri Seed
Kitex Garm.
Manpasand
MCX
Monsanto
Navneet Educat.
PI Inds.
Piramal Enterp.
SRF
S H Kelkar
Symphony
TTK Prestige
V-Guard
Wonderla
1 Day (%)
-0.4
-0.4
-2.9
-5.4
-2.1
-2.4
-0.9
-0.5
-2.5
0.7
-2.4
0.3
0.8
0.1
-0.8
-0.6
-2.2
-1.3
-1.4
-1.7
0.0
-1.8
-0.8
-1.3
-0.2
-1.5
0.2
-1.6
-0.1
1.7
-1.7
1.0
2.3
-1.1
-0.1
-5.1
-1.9
-2.6
-2.1
0.0
-3.3
-1.8
-0.7
-3.8
0.3
-0.1
-1.6
-3.2
-0.6
-1.5
0.9
2.2
-1.1
-0.3
1M (%)
-4.3
-3.5
9.0
-10.9
-12.0
-1.8
-4.6
2.5
-10.7
-4.7
-2.3
1.2
9.1
0.7
-4.6
1.9
-5.9
-3.1
-3.7
-8.8
4.8
-6.1
4.6
2.1
-3.8
-1.3
1.5
15.4
-5.6
-12.1
1.0
0.4
-9.3
-8.1
2.2
-29.8
-7.4
-15.3
-12.2
-4.7
-15.0
-14.7
6.2
-11.9
-10.0
-9.0
-1.6
-10.4
-2.0
-7.6
-9.3
-1.1
-1.7
-5.0
12M (%)
0.6
11.8
22.4
-14.5
-17.5
13.5
-18.6
10.4
15.1
-3.4
1.2
-3.2
-8.9
10.8
-26.3
19.4
12.8
-4.9
25.3
-28.5
42.8
-21.0
3.1
21.6
2.8
15.5
21.5
-4.3
17.9
61.8
16.2
-23.3
13.9
44.1
-40.2
12.7
-14.6
18.2
-23.8
43.2
-31.0
11.4
0.4
3.9
53.0
-5.3
28.2
-8.1
-13.7
7.5
28.0
41.4
-15.7
22 August 2017
22

THEMATIC/STRATEGY RESEARCH GALLERY

REPORT GALLERY
RECENT INITIATING COVERAGE REPORTS
Rs

DIFFERENTIATED PRODUCT GALLERY

Disclosures:
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Motilal Oswal Securities Ltd. (MOSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock
broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed
public company, the details in respect of which are available on
www.motilaloswal.com.
MOSL is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock
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inquiry and adjudge violation of SEBI Regulations; MOSL requested SEBI to provide all documents, records, investigation report relied upon by SEBI which were referred in Show Cause Notice and also sought personal
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a)
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b)
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Compensation of Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
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to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOSL. The report is based on the facts, figures and information that are
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information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to
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the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOSL will not treat recipients as customers by virtue of their receiving this report.
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or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Sector Update | Metals
Disclosure of Interest Statement
Analyst ownership of the stock
Companies where there is interest
No
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and Technical Research. Proprietary
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subject company for which Research Team have expressed their views.
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Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring
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Contact No.:022-30801085.
Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;
MSE(F&O): INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset
Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers
wealth management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities
Products. * Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
4 August 2017
4