1 September 2017
Market snapshot
Equities - India
Close
Chg .%
Sensex
31,730
0.3
Nifty-50
9,918
0.3
Nifty-M 100
18,277
0.4
Equities-Global
Close
Chg .%
S&P 500
2,472
0.6
Nasdaq
6,429
0.9
FTSE 100
7,431
0.9
DAX
12,056
0.4
Hang Seng
11,295
-0.7
Nikkei 225
19,646
0.7
Commodities
Close
Chg .%
Brent (US$/Bbl)
52
4.2
Gold ($/OZ)
1,307
-0.3
Cu (US$/MT)
6,760
0.3
Almn (US$/MT)
2,099
1.4
Currency
Close
Chg .%
USD/INR
63.9
0.0
USD/EUR
1.2
-0.7
USD/JPY
110.6
0.5
YIELD (%)
Close
1MChg
10 Yrs G-Sec
6.5
0.0
10 Yrs AAA Corp
7.5
0.0
Flows (USD b)
31-Aug
MTD
FIIs
0.0
-2.0
DIIs
0.1
2.5
Volumes (INRb)
31-Aug
MTD*
Cash
381
301
F&O
11,708
7,017
Note: YTD is calendar year, *Avg
YTD.%
19.2
21.2
27.4
YTD.%
10.4
19.4
4.0
5.0
20.2
2.8
YTD.%
-5.4
12.7
22.4
23.2
YTD.%
-5.8
12.5
-5.6
YTDchg
0.0
-0.1
YTD
6.8
6.5
YTD*
289
5,292
Today’s top research idea
Larsen & Toubro: Deep dive into subsidiary annual reports
Key takeaways from our analysis of LT’s subsidiary annual reports:
v
Investments in subsidiaries/JVs were contained at INR197b (+3% YoY, 35% of
capital employed). This is in line with LT’s strategy to limit further investments
in subsidiaries/JVs and make them self-funding.
v
Performance of Heavy Steel & Forgings and MHPS TG JV was below par – TG
JV achieved PNY breakeven.
v
Losses at Infrastructure Development (P) narrowed to INR2.6b (INR7.3b in
FY17), helped by termination/restructuring of three road projects.
v
Nabha Power reported a loss in FY17 led by ECL provision.
v
L&T Realty’s sales increased 28% YoY to INR25b, driven by Seawoods mall sale
and residential project in Chennai.
v
Hydrocarbon segment’s orders and profitability surged in FY17.
v
We maintain Buy with SOTP-based TP of INR1,340 (E&C business at 25x FY19E
EPS). LT remains our top pick in the sector – we believe it is an attractive play
on a recovery in industrial and infrastructure capex in India.
Research covered
Cos/Sector
EcoScope
L&T
Key Highlights
1QFY18 real GDP growth slips below 6%
Annual Report: Deep dive into subsidiary annual reports
Piping hot news
India GDP growth rate slumps to 5.7% in Q1 in challenge for economy
v
India’s economic growth unexpectedly slowed to 5.7% in the June quarter, the
slowest pace in three years, underlining the disruption caused by the
uncertainty related to the rollout of the goods and services tax (GST) even as
the Indian economy is struggling to recover from a shock demonetisation.
Chart of the Day: EcoScope - 1QFY18 real GDP growth slips below 6%
GDP growth was supported by government spending, without which it would have been even lower
GCE – Government Consumption Expenditure
Source: CSO, 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
The domestic auto components
industry grew the fastest in six
years — by 14.3% to Rs 2.92 lakh
crore — in the last financial year
driven by strong demand in
aftermarket sales. According to
the data available with the
Automotive Component
Manufacturers Association…
2
Production of horticultural crops for the year 2016-17 (July-June) is pegged
at a record 300 million tonnes (mt), with fruits and vegetables witnessing a
significant increase in output due to abundant rains and rise in area.
According to the third advance estimates of horticultural production,
released by the government on Thursday, the area under cultivation went
up by 2.6 per cent to 25.1 million hectares (ha) from 24.5 million ha in
2015-16.…
Auto Components Sector
grows fastest in six years
Horticultural output seen at a record 300 mt in 2016-17
3
Telecom companies may get
more time for spectrum
payments
India’s telcos, many burdened by
debt and payments to the
government, and facing
competition from a well-heeled
and aggressive new entrant, may
finally have something to cheer
about…
4
Air India today a saw good
response to an auction of its
properties with 10 of them
receiving bids worth more than
their reserve price. The airline is
seeking to divest its non-core
assets. The bidding process for its
14 properties located in different
parts of the country …
Air India receives good
response to auction of 14
properties
5
Debt-ridden Jaiprakash Associates
on Thursday said its proposed sale
of entire 74% stake in Bhilai
Jaypee Cement Ltd for an
enterprise value of Rs1,450 crore
is expected to be concluded by
year-end and plans to raise up to
Rs2,000 crore through sale of
securities…
Jaypee plans to raise Rs2,000
crore, to sell Bhilai Jaypee
Cement
6
Dr. Reddy’s settles patent row
with Vivus on weight
management drug
Nasdaq-listed Vivus Inc. on
Thursday entered into a
settlement agreement with Dr.
Reddy’s Laboratories to resolve a
long-pending patent litigation
related to weight management
capsule Qsymia…
7
Essar Steel seeks another Rs
1,000 crore loan to keep itself
running
Essar Steel which is managed by
an insolvency professional
pending resolution of Rs 45,655
crore debt, is seeking another Rs
1,000 crore in loans to keep the
firm running, and easing of
restrictions imposed by lenders on
the use of funds, said two people
familiar with the matter…
1 September 2017
2

E
CO
S
COPE
1QFY18 real GDP growth slips below 6%
Continue to expect growth at sub-7% in FY18
n
31 August 2017
The Economy Observer
In contrast to our expectation of 6.4% (and market consensus of ~6.5%), real GDP growth eased to its fresh three-year
low of 5.7% YoY in 1QFY18.
Lower-than-expected growth can be ascribed to a significant miss on private consumption growth (6.7% v/s our
estimate of 7.8%). Adjusting for this negative surprise, real GDP growth was in line with our estimates.
Finally, valuables grew significantly, contributing 2.4pp to GDP growth. However, it is important to interpret this surge
in valuables with caution because imports are deducted from GDP. Thus, the contribution of valuables is entirely offset
by higher net imports.
n
n
n
Overall, it appears like our theme of ‘consumption-driven
to investment-led
’
is finally playing out. With private
consumption slowing and no revival in investments, real GDP growth is bound to fall below 7% in FY18.
We expect real GDP to grow by 6.5% in 2QFY18, followed by 7% and 7.5% in the subsequent two quarters. For full-year
FY18, we expect growth to decline to 6.7% from 7.1% in FY17.
n
I. GDP growth slips below 6% in 1QFY18…
n
n
n
Real GDP growth at three-year low…:
In contrast to our expectation of 6.4%
(and market consensus of 6.5%), real GDP growth dropped to 5.7% in 1QFY18.
This was the first instance of sub-6% growth in 13 quarters. The negative
surprise was on account of below-estimate private consumption.
…driven by slower private spending…:
We had expected private consumption
expenditure (PCE) to rise 7.8% YoY in 1QFY18; however, actual growth turned
out to be much lower at 6.7%. Adjusting for this negative surprise, GDP growth
was in line with our estimate. Government consumption spending (GCE) rose by
a sharp 17.2%, contributing as much as 1.9pp to GDP growth. Excluding GCE,
GDP growth was much lower than the headline number at 4.3% YoY
(Exhibit 4).
…while investment growth surges on account of valuables:
Growth in
investment demand surged to a six-quarter high of 8.5% in 1QFY18, after
declining by 2.2% in the preceding quarter. This was largely on account of
valuables, which tripled compared to the year ago period, contributing 2.4pp to
GDP growth
(Exhibit 1).
However, it is important to interpret this surge in
valuables with caution because imports are deducted from GDP – the
contribution of ‘valuables’ is entirely offset by higher net imports.
GVA rises just 5.6% in 1QFY18…:
Growth in real GVA was unchanged from the
preceding quarter at 5.6% YoY. This was also much lower than our expectation
of 6.1% and market consensus of 6.2%.
…on account of weakness in mining, manufacturing:
Lackluster GVA growth
was largely driven by weakness in the mining and manufacturing sectors. While
mining GVA declined 0.7%, manufacturing growth slowed to 1.2% from 5.3% in
the preceding quarter. This was the slowest growth in manufacturing activity in
five years; the sector only contributed 0.2pp to GVA growth in the quarter
(Exhibit 1).
II. …while GVA growth is unchanged at 5.6%
n
n
1 September 2017
3

n
Trade, hotels, etc. surprise positively:
Growth in the trade, hotels, transport
and communication segment rose to 11.1% in 1QFY18 from 6.5% in the
preceding quarter. This segment contributed as much as 2.1pp to GVA growth in
1QFY18. As a result, growth in services touched a four-quarter high of 8.7%.
Agriculture growth decelerated to 2.3% from average of 4.9% over the last four
quarters.
III. Expect real GDP growth to decelerate in FY18
n
n
Overall, it appears like our theme of ‘
consumption-driven to investment-led
’ is
finally playing out. With private consumption slowing and no revival in
investments, real GDP growth is bound to fall below 7% in FY18. Besides, our
detailed analysis
of 2017-18 budgets for 20 states revealed that the
government’s spending is budgeted to grow at the slowest pace in 13 years. This
implies that growth in GCE, which had contributed as much as 2pp to real GDP
growth in FY17, will also moderate in FY18.
Consequently, we expect GDP growth to moderate to 6.7% in FY18 from 7.1% in
the preceding year. Nevertheless, on a quarterly basis, we expect real GDP
growth to improve to 6.5% in 2QFY18, and thereafter to 7% and 7.5% in the
subsequent two quarters.
1 September 2017
4

Larsen & Toubro
BSE SENSEX
31,646
S&P CNX
9,884
31 August 2017
Update
| Sector:
Capital Goods
CMP: INR1,144
TP: INR1,340(+17%)
Deep dive into subsidiary annual reports
Investments into subsidiaries/JVs curtailed
Buy
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 (%)
LT IN
1,399.4
1223 / 864
0/6/4
1,600.9
25.0
2655
100.0
Financials Snapshot (INR b)
Y/E Mar
2017 2018E 2019E
Sales
1,100 1,213 1,341
EBITDA
110.7 129.2 154.0
Adj PAT *
59.2
65.5
74.5
EPS (INR)*
42.3
46.8
53.2
EPS Gr. (%)
43.0
10.7
13.7
BV/Sh (INR)
358.8 322.9 358.5
RoE (%)
12.5
13.7
15.6
RoCE (%)
8.0
8.9
10.6
P/E (x)*
27.0
24.4
21.5
P/BV (x)
3.6
3.2
3.5
*Consolidated
Shareholding pattern (%)
As On
Jun-17 Mar-17 Jun-16
Promoter
0.0
0.0
0.0
DII
39.0
38.8
38.7
FII
19.3
19.2
18.7
Others
41.8
42.1
42.6
FII Includes depository receipts
Stock Performance (1-year)
Larsen & Toubro
Sensex - Rebased
1,250
1,150
1,050
950
850
We pored over ~4,600 pages of Larsen & Toubro’s (LT) subsidiary annual reports.
Key highlights of our analysis:
n
Investments in subsidiaries/JVs were contained at INR197b (+3% YoY, 35% of
capital employed).
This is in line with LT’s strategy to limit further investments
in subsidiaries/JVs and make them self-funding. Some major changes were
seen at the subsidiary level in FY17 – i) Hyderabad Metro was taken over by LT
from IDPL for a consideration of INR21b. ii) LT took INR9.5b write-down in its
investment in IDPL, iii) Hydrocarbon had INR2.6b of preference shares being
issued by the parent during the year (see exhibits 15 and 16 for details).
n
Kattupalli Port demerged from L&T Shipbuilding in FY17.
According to the
company, the sale of the port to Adani Ports should be complete by 2QFY18 –
an advance of INR14.3b was already received in 3QFY17. Ex-ports, the
shipbuilding business reported a loss of INR5.9b – the yard is targeting a few
large naval orders, which are expected to be finalized in FY18, and
subsequently, improve profitability FY19 onward.
n
Performance of Heavy Steel & Forgings and MHPS TG JV was below par.
FY17
was another weak year for the Heavy Steel and Forgings segment, with
EBITDA/PAT loss of INR254m/INR2.5b, primarily due to low capacity utilization.
Within the MHPS partnership, the boiler JV recorded PAT of INR2.2b, driven by
a 46% rise in sales, but the TG JV reported a loss of INR60m at the PAT level
(despite EBITDA coming in at INR1.95b, with a 22% margin, PBT positive). The
boiler JV received an order for the 1.98GW NLC Ghatampur project, but no
domestic orders were bagged by the TG JV. Export orders worth USD200m
were won by the power JVs in FY17.
n
Losses at Infrastructure Development (P) narrowed, helped by
termination/restructuring of three road projects.
Two road projects – PNG
Tollway and Chennai TADA Tollway – have given a notice of termination to the
NHAI, while Halol Shamlaji Tollway has seen a strategic debt restructuring.
Lower losses from these projects, coupled with lower interest costs during the
year, helped restrict losses at IDPL to INR2.7b in FY17 v/s INR7.3b in FY16.
n
Hyderabad Metro is likely to commission two stretches in FY18.
Capex
incurred till date stands at INR125b, of which LT’s equity contribution is
INR21b, debt is INR87b and VGF is INR9.6b. The 72km metro line has been
divided into six stages, of which two – the Miyapur to SR Nagar (12km) and
Nagote to Mattuguda (8km) – are likely to be commissioned in FY18 with
expected ridership of 1.2m/day.
n
Nabha Power reported a loss in FY17 led by ECL provision.
From
INR2.5b/INR2b in FY16, Nabha Power’s EBITDA/PAT fell to INR80m/-INR261m,
primarily due to ECL provision of INR1.4b for the delay in receipt of receivables.
The company has disputed the non-allowance of coal washing and transport
charges from Punjab State Electricity Board; the matter is currently sub-judice.
1 September 2017
5

n
L&T Realty sales increased 28% YoY to INR25b, driven by the Seawoods mall
sale and the residential project in Chennai.
The Seawoods retail mall was sold
for INR11b in FY17; however, profitability was muted due to interest de-
capitalization (INR4b) booked relating to the mall sale. FY18 is likely to see
flattish sales in the realty segment as a few large projects (Parel, Powai) await
approvals.
n
Hydrocarbon segment’s orders and profitability surged in FY17.
Segmental
orders surged 77% YoY to INR185b (primarily on overseas jobs), while margins
jumped to 9.3% (+520bp) on closure of legacy jobs in the Middle East. PAT stood
at INR4.4b v/s INR742m in FY16.
Other key takeaways from LT’s annual report:
n
Four key thrust areas identified by the company are:
a) Business value
unlocking by divesting non-core businesses, b) improving working capital, c)
digitalization and d) cost and operational efficiencies for profitable growth.
n
Digitization – a key focus area:
A recurring theme in the annual report has been
LT’s thrust on digitization across business segments. It has been identified as a
strategic initiative, currently being rolled out across the construction business
and thereafter across the company – the aim is to achieve higher efficiencies,
and thus, boost sales/profitability.
n
NWC contracts leading to strong growth in operating cash in FY17:
Operating
cash flow stood at INR60b in FY17, primarily driven by a reduction in NWC (18%
of sales v/s 21% in FY16). Management’s focus on restricting execution where
payment delays are seen has shown results in the past year.
n
ECL-related provisioning stood at INR2.2b/15b in standalone/consolidated P/L
in FY17.
As per Ind-AS, an expected credit loss provision has been provided
based on time-weighted realization of debtors. At the consolidated level, ECL
excl. the financing business stood at INR3.4b in FY17.
Reiterate Buy; maintain TP at INR1,340.
We maintain our
Buy
rating with an SOTP-
based price target of INR1, 340/share (E&C business at 25x FY19E EPS). LT remains
our top pick in the sector – we believe it is an attractive play on a recovery in
industrial and infrastructure capex in India. Key risks to our rating: a) unexpected
slowdown in government infrastructure spending and b) a sharp fall in oil prices.
1 September 2017
6

In conversation
1. Merger to form a leading automotive & industrial supplier in
India, Schaeffler; Klaus Rosenfeld, CEO
n
n
German automotive and industrial supplier Schaeffler will be merging its three
local entities under the listed subsidiary Schaeffler India to build a larger
combined entity. he stated that the merger would require regulatory approvals
from stock market authorities and also the NCLT from Mumbai and Chennai.
The entity today has 230 million euros of revenues and after merger of the
other two entities, the revenues would be 400 million euros. We will also double
the amount of employees from 1500 to more than 3000.
2. Demand pipeline strong; not looking to change FY18 guidance:
Mindtree; Rostow Ravanan, MD & CEO
n
n
He said their business was quite sensitive to currency and even a one percent
change in rupee impacted their margins by 30-40 basis points (bps).
On the business front, he said the demand pipeline continues to be extremely
strong, "it is better than what we had in July when we announced our results."
Therefore, the business outlook continues to be very positive, he added.
3. Partnering with most key operators in digital ecosystem:
Shemaroo; Hiren Gada, Director & CFO
n
n
n
With the launch of Jio and bandwidth now so freely available, have seen a
phenomenal spike in consumption, in usage, in viewership and therefore the
demand for content
We have geared over the last three-four years in terms of building up our library
and today we are partnering with most of the key operators in the digital
ecosystem
The industry is expected to grow at 30 percent CAGR and believe that we can
grow faster than that considering the fact that we have prepared well for this
1 September 2017
7

From the think tank
1. Reliance infrastructure's focus on a few businesses will shore
up its valuation
n
n
Reliance Infrastructure, which has been trying to build its focus on selected
segments, is now in news amid talks about Greenko Group being interested in
buying its Mumbai electricity business for an enterprise value of Rs 10000-13000
crore. Mumbai electricity business comes under the standalone business and if
one removes the EPC business revenue, it clocks close to Rs 8000 crore revenue.
The company’s annual report suggests that the Mumbai distribution business
alone makes a revenue of close to Rs 6000 crore.
Reliance Infrastructure is now focusing on emerging and possibly high growth
businesses, which will require capital. The company also wants to ease financial
leverage. To put it in perspective, while Reliance Infrastructure has debt to
equity (debt at around Rs 29,165 crore in FY17) ratio at a comfortable 1.2 times,
its interest coverage ratio is under two times. The good news is there is a
conscious effort to de-leverage by divesting few assets and further reduce debt
with the proposed InvIT.
2. Will triumph tie-up help bajaj auto make adequate inroads?
n
The deal makes sense for both partners. For Bajaj, the strong international
brand positioning of Triumph will help it to capture the emerging mid-size bike
segment faster where its presence is negligible. As per industry estimates, the
segment is estimated at close to one million bikes annually across the globe.
Bajaj has indicated that the company plans to offer an aspirational, international
bike at an affordable price and create a substantial new market. RE sold
248,000 units in April-July 2017 whereas Bajaj sold only 26,413 units in that
segment. The Triumph tie-up is a step towards correcting this imbalance.
1 September 2017
8

International
3. Credit default swaps are storing up trouble for China
n
Credit default swaps are a Wall Street invention. During the crisis of 2008, they
crippled a number of significant financial companies. But where in the world are
such instruments most popular? Not in the US, despite what you might think,
but in China. The China Financing Guarantee Association, a quasi-governmental
body that regulates the guarantee companies (in other words, the issuers of the
swaps), says it has 194 member institutions, though their ranks have thinned in
recent years. Many guarantee companies have simply not bothered to become
members of this club. In a parallel with the American obsession with home
ownership that led to the formation of Fannie Mae and Freddie Mac, the federal
housing finance agencies, the Chinese government has in the past few decades
done its best to promote small and medium-sized enterprises by providing them
with credit guarantees. Tens of thousands of state-owned, private and hybrid
guarantee companies have come into being.
1 September 2017
9

Click excel icon
for detailed
valuation guide
Rs
Valuation snapshot
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E FY19E
27.8
23.5
21.2
43.1
46.6
18.3
51.3
42.3
32.4
24.2
23.6
24.8
44.8
31.0
19.0
51.4
27.9
32.6
26.3
34.7
22.5
31.3
19.5
23.5
34.6
NM
36.4
45.8
12.8
24.1
29.7
23.0
NM
18.1
36.0
9.8
NM
23.1
932.4
16.8
100.5
53.1
41.9
29.3
25.3
17.1
63.7
37.9
17.6
38.2
17.6
27.6
20.7
20.5
30.9
40.3
18.1
36.8
33.9
17.4
21.4
21.1
19.6
24.3
27.3
16.8
41.9
24.1
22.9
22.0
101.1
20.2
26.0
20.0
19.8
26.8
20.7
30.1
30.2
9.8
19.0
24.0
14.4
NM
11.3
8.5
8.3
7.4
24.6
19.0
15.0
17.8
37.4
27.6
21.7
20.7
13.4
52.2
33.6
14.1
27.4
16.2
5.1
5.1
4.8
6.4
7.6
2.9
16.0
8.1
3.3
3.4
7.9
3.1
2.8
6.4
2.2
11.9
4.8
2.2
2.7
2.7
2.1
5.3
2.2
1.3
5.0
0.7
4.7
4.8
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
10.2
5.0
3.1
4.2
2.0
19.1
7.0
4.2
4.5
3.2
4.4
4.5
4.3
5.5
6.9
2.5
11.9
6.7
2.8
3.0
6.8
2.8
2.5
5.6
1.9
9.8
4.2
2.1
2.2
2.6
1.7
4.6
2.0
1.2
4.3
0.7
4.2
3.4
1.0
3.2
3.0
0.9
0.7
0.7
0.5
0.9
0.3
0.8
1.2
0.4
0.8
8.2
4.0
2.7
3.6
1.8
15.6
6.3
3.8
3.9
2.7
20.3
23.1
25.3
16.2
15.8
16.9
37.1
20.8
10.6
13.9
35.7
14.2
6.4
20.3
9.8
25.6
17.1
6.9
10.8
9.5
9.9
18.3
10.2
5.6
15.4
-27.0
13.8
12.3
9.5
18.9
11.5
4.0
-6.7
4.2
1.4
10.1
-8.4
3.6
-0.2
2.7
0.9
21.7
15.1
12.0
18.0
14.4
32.5
18.9
25.5
12.4
19.4
17.3
23.2
22.2
19.2
18.0
14.8
37.0
21.6
17.3
14.1
34.6
13.9
10.8
20.1
12.3
25.7
17.4
9.3
11.4
2.6
10.0
18.8
8.9
6.3
17.3
3.5
15.0
13.6
10.8
18.3
12.5
6.1
-5.2
6.2
5.8
10.9
4.6
3.2
7.0
3.0
4.6
24.3
16.1
13.3
18.6
14.1
33.0
19.3
28.2
15.6
18.2
19.9
27.0
24.0
22.8
20.7
17.3
35.4
23.3
18.3
15.0
31.5
14.9
11.5
22.8
26.6
33.6
22.3
14.7
11.8
8.7
10.5
19.6
9.5
6.9
18.5
7.2
16.3
13.9
12.7
19.5
14.2
12.4
3.0
9.1
7.3
11.2
5.4
5.9
11.4
6.1
8.3
25.9
28.0
15.6
19.0
15.6
32.8
18.4
31.3
19.1
18.5
Company
Automobiles
Amara Raja
Ashok Ley.
Bajaj Auto
Bharat Forge
Bosch
CEAT
Eicher Mot.
Endurance Tech.
Escorts
Exide Ind
Hero Moto
M&M
Mahindra CIE
Maruti Suzuki
Tata Motors
TVS Motor
Aggregate
Banks - Private
Axis Bank
DCB Bank
Equitas Hold.
Federal Bank
HDFC Bank
ICICI Bank
IDFC Bank
IndusInd
J&K Bank
Kotak Mah. Bk
RBL Bank
South Indian
Yes Bank
Aggregate
Banks - PSU
BOB
BOI
Canara
IDBI Bk
Indian Bk
OBC
PNB
SBI
Union Bk
Aggregate
NBFCs
Bajaj Fin.
Bharat Fin.
Capital First
Cholaman.Inv.&Fn
Dewan Hsg.
GRUH Fin.
HDFC
Indiabulls Hsg
L&T Fin Holdings
LIC Hsg Fin
Reco
Buy
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Neutral
Buy
Neutral
Buy
Not Rated
Buy
Buy
Buy
CMP
(INR)
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
27
10
17
20
0
19
14
7
13
37
-5
20
14
44
1
28.0
4.6
132.3
26.2
473.1
93.3
612.7
23.5
20.0
8.1
169.1
54.3
5.4
248.6
19.8
11.7
28.2
37.9
5.2
7.0
137.2 163.6
36.5
50.5
547.2 705.7
94.2 126.8
852.9 1,092.8
29.3
37.9
37.1
45.8
9.2
11.0
189.3 199.1
68.5
82.4
9.9
11.8
281.7 374.5
22.4
59.8
14.4
23.7
778
986
107
118
2,808 3,281
1,127 1,353
22,031 21,994
1,706 2,029
31,404 35,854
994
1,059
647
732
197
269
3,998 3,818
1,345 1,617
240
-
7,703 8,819
377
542
604
612
Neutral
501
Neutral
184
Buy
175
Buy
108
Buy
1,775
Buy
298
Neutral
55
Buy
1,657
Neutral
79
Buy
976
Under Review 545
Buy
28
Buy
1,756
545
192
201
139
2,000
366
62
1,800
91
1,153
-
34
2,133
9
5
15
28
13
23
13
9
15
18
22
21
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
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
Buy
Neutral
Neutral
Neutral
Buy
Neutral
Buy
Buy
Neutral
138
144
339
55
286
126
144
277
136
198
149
360
49
382
150
184
341
140
44
4
6
-10
33
19
28
23
3
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
1,784
879
723
1,161
505
519
1,775
1,216
200
674
1,800
820
925
1,400
630
450
1,900
1,350
200
708
1
-7
28
21
25
-13
7
11
0
5
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
1 September 2017
10

Company
Reco
Manappuram
Not Rated
M&M Fin.
Buy
Muthoot Fin
Buy
PFC
Neutral
Repco Home
Buy
REC
Neutral
Shriram City Union Buy
STF
Buy
Aggregate
Capital Goods
ABB
Sell
Bharat Elec.
Buy
BHEL
Sell
Blue Star
Neutral
CG Cons. Elec.
Buy
CG Power & Indu. Neutral
Cummins
Buy
GE T&D
Neutral
Havells
Neutral
K E C Intl
Neutral
L&T
Buy
Pennar Eng.
Not Rated
Siemens
Neutral
Solar Ind
Neutral
Suzlon Energy
Not Rated
Thermax
Neutral
Va Tech Wab.
Buy
Voltas
Sell
Aggregate
Cement
Ambuja Cem.
Buy
ACC
Neutral
Birla Corp.
Buy
Dalmia Bharat
Buy
Grasim Inds.
Neutral
India Cem
Neutral
J K Cements
Buy
JK Lakshmi Ce
Buy
Ramco Cem
Buy
Orient Cem
Buy
Prism Cem
Buy
Shree Cem
Buy
Ultratech
Buy
Aggregate
Consumer
Asian Paints
Neutral
Britannia
Buy
Colgate
Buy
Dabur
Neutral
Emami
Buy
Godrej Cons.
Neutral
GSK Cons.
Sell
HUL
Buy
ITC
Neutral
Jyothy Lab
Neutral
CMP
(INR)
99
427
475
122
649
168
2,057
991
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
-
8.6
10.8
12.5
459
7
7.1
13.9
17.8
550
16
29.5 38.2
44.2
117
-4
25.7 27.2
30.2
800
23
29.1 34.5
39.3
134
-20
31.4 35.0
40.4
2,800
36
84.3 121.7 164.1
1,330
34
55.6 80.0 102.4
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E
11.5
9.2
2.5
2.3
24.0 25.9
60.3 30.8
3.8
3.6
6.5
12.0
16.1 12.5
2.9
2.5
19.4 21.5
4.7
4.5
0.8
0.7
17.9 17.0
22.3 18.8
3.6
3.0
17.4 17.5
5.4
4.8
1.0
0.9
19.9 19.1
24.4 16.9
2.7
2.4
11.7 15.0
17.8 12.4
2.0
1.8
11.7 15.0
20.9 17.5
3.5
3.1
16.8 17.6
68.2
27.5
60.1
59.0
46.8
19.5
34.5
70.7
51.1
26.3
26.9
14.8
72.1
42.7
25.6
28.8
20.6
33.9
34.7
57.4
49.9
32.9
70.0
17.6
31.6
29.8
61.1
25.3
NM
402.6
45.8
41.6
37.2
55.6
57.2
52.4
43.5
40.9
49.1
34.2
62.0
33.6
34.0
60.0
25.6
28.3
43.3
43.5
39.4
33.0
43.6
44.6
23.9
24.3
11.5
56.6
36.3
18.4
29.6
17.7
31.2
30.1
40.4
36.2
23.6
39.5
16.7
22.2
25.3
43.7
25.2
34.5
31.5
38.2
43.7
31.8
52.6
49.4
45.5
40.7
40.3
43.1
33.7
53.1
30.4
38.8
8.7
5.7
1.0
9.6
25.4
1.2
6.8
10.1
9.3
5.1
3.2
1.5
6.7
7.8
-1.5
3.9
3.4
5.2
3.9
2.9
3.9
2.3
4.9
1.9
1.1
4.0
3.6
4.4
3.2
5.8
8.0
4.6
3.6
14.7
18.7
23.7
11.5
14.0
11.9
7.2
39.5
7.6
6.4
7.6
4.4
1.0
9.0
18.8
1.2
6.3
8.8
8.3
4.3
3.5
1.3
5.8
6.7
-1.6
3.6
2.9
4.7
3.8
2.8
3.7
2.1
4.3
1.7
1.0
3.5
3.3
3.8
2.9
5.0
6.7
4.2
3.3
13.4
15.5
22.5
9.8
11.9
9.3
7.0
38.1
7.5
6.4
12.7
20.6
1.6
18.0
76.4
6.2
21.2
12.4
18.2
21.2
12.5
10.2
9.3
19.8
NM
14.3
16.8
18.0
11.2
5.1
7.9
7.3
7.2
11.5
3.4
14.4
6.0
19.0
-3.2
1.4
18.4
11.6
9.6
28.5
36.9
50.4
28.4
35.8
24.6
22.2
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
13.7
11.6
10.3
19.8
-8.8
12.7
17.6
15.8
12.7
7.0
10.6
9.2
11.6
10.9
4.7
14.8
7.9
16.1
8.8
17.0
19.1
10.1
10.3
26.7
34.3
50.8
26.0
32.0
24.2
21.1
73.1
24.8
16.5
FY19E
26.9
14.2
21.2
16.8
17.0
19.1
17.6
16.9
18.1
15.8
16.9
3.5
29.6
49.7
3.7
22.8
22.7
20.7
20.9
15.6
12.6
13.7
20.9
-11.0
12.8
17.4
16.0
13.6
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
18.4
1,344
191
129
759
219
80
913
405
488
312
1,136
105
1,285
880
16
889
613
524
1,200
210
100
650
250
80
1,170
395
455
295
1,340
-
1,355
900
-
830
800
430
-11
10
-23
-14
14
0
28
-3
-7
-6
18
5
2
-7
30
-18
19.7
6.9
2.1
12.9
4.7
4.1
26.5
5.7
9.6
11.9
42.3
7.1
17.8
20.6
0.6
30.8
29.8
15.5
22.4
7.4
4.6
17.5
5.0
2.0
27.7
9.3
10.9
13.1
46.8
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
53.2
11.2
33.0
30.0
1.0
33.2
39.8
19.1
281
308
1,801 1,622
967
1,150
2,715 3,282
1,193 1,079
178
201
1,005 1,277
425
519
691
806
153
185
110
140
17,594 22,360
3,998 4,936
10
-10
19
21
-10
13
27
22
17
21
27
27
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
1,168
4,213
1,112
315
1,084
928
5,333
1,217
282
381
1,200
4,660
1,285
315
1,310
995
4,500
1,360
280
395
3
11
16
0
21
7
-16
12
-1
4
21.0 22.2
73.7 85.3
21.2 24.4
7.2
7.7
26.5 26.9
18.9 21.5
156.1 158.1
19.6 22.9
8.4
9.3
11.2
9.8
26.5
104.6
29.8
9.1
33.1
24.7
182.1
27.3
10.3
11.1
1 September 2017
11

Company
Marico
Nestle
Page Inds
Parag Milk
Pidilite Ind.
P&G Hygiene
Prabhat Dairy
United Brew
United Spirits
Aggregate
Healthcare
Alembic Phar
Alkem Lab
Ajanta Pharma
Aurobindo
Biocon
Cadila
Cipla
Divis Lab
Dr Reddy’s
Fortis Health
Glenmark
Granules
GSK Pharma
IPCA Labs
Jubilant Life
Lupin
Sanofi India
Shilpa Medicare
Strides Shasun
Sun Pharma
Syngene Intl
Torrent Pharma
Aggregate
Logistics
Allcargo Logistics
Blue Dart
Concor
Gateway
Distriparks
Gati
Transport Corp.
Aggregate
Media
Dish TV
D B Corp
Den Net.
Ent.Network
Hind. Media
HT Media
Jagran Prak.
Music Broadcast
PVR
Siti Net.
Sun TV
Reco
Neutral
Neutral
Buy
Neutral
Neutral
Neutral
Not Rated
Neutral
Neutral
CMP
TP
% Upside
(INR) (INR) Downside
315
355
13
7,101 6,160
-13
17,729 19,600
11
255
245
-4
836
810
-3
8,272 8,800
6
134
-
790
875
11
2,545 2,525
-1
FY17
6.3
118.0
238.7
3.6
16.7
132.9
3.5
8.7
26.7
EPS (INR)
FY18E FY19E
6.8
8.2
115.1 133.6
294.7 398.4
9.1
12.5
18.1
20.6
151.6 176.0
3.5
6.4
10.1
15.0
34.5
51.5
P/E (x)
FY17 FY18E
50.0 46.1
60.2 61.7
74.3 60.2
70.7 28.0
50.0 46.3
62.2 54.6
37.9 38.5
90.9 78.5
95.2 73.8
46.9 42.4
24.0
23.7
20.4
18.5
33.1
35.2
36.0
17.6
27.8
14.2
15.5
17.7
69.6
25.9
19.0
17.6
31.4
42.8
28.2
18.4
34.1
21.8
22.9
17.1
41.4
34.7
32.5
14.1
16.9
30.5
80.8
18.1
NM
73.3
10.4
12.6
16.5
58.5
64.2
NM
28.1
25.3
24.4
22.6
16.2
34.8
27.9
27.1
20.8
23.7
67.1
14.2
15.6
51.1
25.1
14.9
23.7
30.4
28.4
19.2
31.9
27.6
22.5
25.0
15.0
32.7
31.3
24.6
7.4
13.6
25.5
61.0
15.5
NM
62.7
9.5
11.8
14.4
40.4
42.7
NM
24.5
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E
17.5 15.0 36.7 34.9
22.7 21.1 39.0 35.5
29.7 23.8 40.0 39.6
3.3
2.9
6.0
11.0
13.0 10.6 28.2 25.2
39.0 32.4 39.3 64.9
1.9
1.8
5.2
4.9
9.1
8.3
10.4 11.0
19.1 13.3 21.3 18.0
12.9 11.9 27.5 28.2
5.1
5.1
6.7
4.5
4.2
7.4
3.7
3.9
2.7
1.5
3.8
3.2
10.1
2.1
3.2
3.3
5.4
5.2
3.0
3.2
6.9
4.7
3.9
2.5
18.3
3.6
2.4
1.9
2.6
3.8
17.3
4.3
1.6
4.7
1.8
0.9
2.4
3.9
6.4
3.5
6.6
4.5
4.4
5.4
3.6
3.9
6.1
3.3
3.6
2.6
1.3
3.1
2.2
11.8
2.0
2.7
3.0
5.0
4.5
2.7
3.2
5.6
4.1
3.5
2.3
14.0
3.5
2.3
1.7
2.2
3.5
13.5
3.8
1.7
4.4
1.5
0.8
2.4
3.6
5.6
3.6
6.1
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
7.3
12.4
16.7
12.4
24.1
25.5
-12.0
6.7
19.0
7.1
17.6
11.2
10.4
-23.5
23.6
19.0
19.2
26.5
24.8
11.1
23.9
12.1
18.1
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
9.4
19.4
17.8
13.8
24.9
25.8
-5.3
7.2
17.3
6.9
16.5
9.3
14.0
-4.1
25.0
FY19E
37.7
38.1
43.1
13.3
23.5
62.8
8.5
14.7
20.3
29.3
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
12.4
25.4
18.6
15.4
99.2
26.6
0.7
10.7
17.3
6.4
17.4
12.4
18.2
6.2
28.8
Neutral
Neutral
Buy
Buy
Sell
Buy
Neutral
Neutral
Neutral
Buy
Neutral
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Not Rated
Neutral
519
1,794
1,195
725
338
500
572
697
2,020
146
609
128
2,392
416
702
982
4,060
600
908
480
444
1,203
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
-2
2
34
17
-2
11
-9
-2
24
50
27
56
5
3
29
15
19
34
43
7
12
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
Buy
Not Rated
Neutral
Buy
Not Rated
Not Rated
168
4,243
1,318
221
118
286
212
-
1,214
272
-
-
26
-8
23
9.8
11.2
102.5 129.9
38.0 42.1
6.8
8.4
16.9
9.0
15.9
21.0
13.3
163.2
48.6
12.4
23.9
25.9
Buy
Buy
Neutral
Neutral
Buy
Neutral
Buy
Buy
Buy
Neutral
Neutral
80
369
86
838
268
93
178
376
1,318
25
697
106
450
90
928
350
90
225
469
1,628
32
860
33
22
5
11
30
-4
26
25
23
29
23
1.0
20.4
-8.6
11.4
25.9
7.4
10.8
6.4
20.5
-1.8
24.9
1.3
23.7
-2.7
13.4
28.3
7.9
12.4
9.3
30.9
-0.3
28.5
4.3
27.6
0.3
21.7
33.6
8.1
14.1
14.0
46.9
0.4
35.9
1 September 2017
12

Company
Zee Ent.
Aggregate
Metals
Hindalco
Hind. Zinc
JSPL
JSW Steel
Nalco
NMDC
SAIL
Vedanta
Tata Steel
Aggregate
Oil & Gas
BPCL
GAIL
Gujarat Gas
Gujarat St. Pet.
HPCL
IOC
IGL
MRPL
Oil India
ONGC
PLNG
Reliance Ind.
Aggregate
Retail
Jubilant Food
Titan Co.
Aggregate
Technology
Cyient
HCL Tech.
Hexaware
Infosys
KPIT Tech
L&T Infotech
Mindtree
Mphasis
NIIT Tech
Persistent Sys
Tata Elxsi
TCS
Tech Mah
Wipro
Zensar Tech
Aggregate
Telecom
Bharti Airtel
Bharti Infratel
Idea Cellular
Tata Comm
Aggregate
Utiltites
Reco
Buy
CMP
(INR)
520
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
630
21
23.1 14.7
18.9
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E FY19E
22.5 35.3
8.6
7.4
24.7 22.6
24.5
38.9 29.8
5.5
5.0
14.0 16.7 21.3
14.7
15.0
NM
17.2
19.6
12.7
NM
20.4
16.8
20.9
10.9
16.8
38.4
21.7
12.0
10.6
29.1
9.4
14.8
9.6
19.8
16.5
12.8
139.1
68.3
72.9
17.3
14.4
19.9
14.5
9.8
13.6
18.6
15.7
13.1
16.5
29.2
18.7
13.9
17.7
15.2
16.7
38.5
25.4
NM
24.0
39.0
10.8
13.1
NM
11.6
20.8
10.2
NM
12.4
9.8
14.4
15.4
14.3
21.0
17.1
14.3
12.4
25.6
14.7
10.2
9.5
16.1
13.8
12.9
94.0
58.1
60.8
15.0
14.0
17.4
14.7
11.0
12.5
16.1
15.2
11.8
14.3
24.4
18.7
12.6
16.5
15.2
16.6
98.6
21.1
NM
75.0
216.0
1.8
4.0
0.4
2.7
1.4
1.8
0.7
1.9
1.9
1.7
3.4
1.7
6.5
2.4
3.7
2.1
6.1
2.4
0.8
0.9
4.2
1.6
1.7
11.4
12.9
12.6
2.8
3.6
4.8
3.0
1.5
4.7
3.0
2.1
1.7
2.5
9.2
5.6
2.3
2.8
2.4
3.8
2.5
4.5
1.3
11.7
2.7
1.5
4.3
0.4
2.3
1.3
1.7
0.7
1.8
1.7
1.6
2.9
1.6
5.2
2.2
3.1
1.9
5.2
2.1
0.8
0.9
3.5
1.5
1.6
10.5
11.8
11.5
2.5
3.2
4.2
2.7
1.4
3.7
3.0
2.2
1.7
2.4
7.4
6.0
2.1
2.7
2.2
3.8
2.5
3.9
1.6
10.1
2.7
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
6.7
16.2
-1.6
132.2
6.9
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
19.6
13.0
33.0
17.3
14.5
14.4
17.9
33.5
31.1
17.4
16.1
15.0
22.8
2.5
19.8
-17.3
14.5
1.2
15.4
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
19.3
14.2
29.4
20.1
16.2
15.4
20.7
32.2
33.5
16.9
16.1
17.9
22.0
3.8
19.4
-21.7
33.6
2.8
Buy
Neutral
Buy
Buy
Neutral
Buy
Sell
Buy
Neutral
238
295
137
255
72
127
61
308
638
309
301
194
297
63
180
30
316
591
30
2
41
17
-13
42
-51
3
-7
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
529
378
781
191
488
454
1,278
139
286
157
225
1,594
515
346
691
171
510
458
1,152
113
316
195
274
1,499
-3
-9
-12
-10
5
1
-10
-19
11
24
22
-6
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
1,392
617
850
565
-39
-8
10.0
9.0
14.8
10.6
20.7
12.6
Buy
Neutral
Neutral
Buy
Neutral
Buy
Neutral
Neutral
Neutral
Buy
Buy
Neutral
Buy
Neutral
Buy
530
862
273
915
117
752
463
612
498
620
1,646
2,497
428
299
792
600
950
250
1,050
140
880
450
610
540
750
1,992
2,350
490
270
950
13
10
-8
15
20
17
-3
0
8
21
21
-6
14
-10
20
30.6 35.4
59.8 61.8
13.7 15.7
62.9 62.2
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
67.2
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
428
378
91
653
490
480
110
775
15
27
21
19
11.1
14.9
-1.1
27.2
4.3
17.9
-10.9
8.7
6.6
20.4
-11.3
26.1
1 September 2017
13

Company
Reco
Coal India
Buy
CESC
Buy
JSW Energy
Sell
NTPC
Buy
Power Grid
Buy
Tata Power
Sell
Aggregate
Others
Arvind
Neutral
Avenue
Neutral
Supermarts
Bata India
Under Review
BSE
Neutral
Castrol India
Buy
Century Ply.
Neutral
Coromandel Intl Buy
Delta Corp
Buy
Dynamatic Tech Buy
Eveready Inds.
Buy
Interglobe
Neutral
Indo Count
Neutral
Info Edge
Buy
Inox Leisure
Sell
Jain Irrigation
Under Review
Just Dial
Neutral
Kaveri Seed
Buy
Kitex Garm.
Buy
Manpasand
Buy
MCX
Buy
Monsanto
Buy
Navneet Education Buy
PI Inds.
Buy
Piramal Enterp.
Buy
SRF
Buy
S H Kelkar
Buy
Symphony
Sell
Trident
Buy
TTK Prestige
Neutral
V-Guard
Neutral
Wonderla
Buy
CMP
(INR)
238
1,016
68
169
218
79
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
275
16
14.9 18.3
19.1
1,360
34
51.9 88.9
99.3
49
-27
3.8
3.4
2.7
204
21
13.0 13.3
16.3
262
20
14.2 17.4
20.6
68
-14
5.2
6.4
6.7
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E
15.9 13.0
6.0
5.8
37.8 44.2
19.6 11.4
1.3
1.2
6.5
10.6
17.6 20.0
1.1
1.1
6.3
5.3
13.0 12.7
1.4
1.3
11.5 10.8
15.3 12.6
2.3
2.0
16.2 17.3
15.3 12.4
1.8
1.6
11.2 13.9
14.8 12.9
2.2
2.0
14.9 15.9
29.8
135.5
50.4
23.7
28.5
29.0
26.6
63.5
35.3
23.5
26.6
8.9
60.9
74.6
17.8
22.4
29.2
12.4
61.9
42.4
28.7
21.5
21.6
37.4
17.8
32.8
53.6
15.0
47.5
52.1
48.6
28.5
81.7
43.4
23.1
28.1
25.7
18.3
33.0
21.1
22.2
19.2
13.1
43.9
31.0
13.0
21.2
16.4
10.4
39.0
35.9
23.6
19.1
23.7
26.1
19.1
31.3
36.1
12.0
45.5
41.6
28.5
2.7
16.9
6.6
2.0
32.3
7.9
4.5
4.9
4.9
7.6
21.9
2.7
5.9
4.3
1.5
3.0
3.8
3.3
3.9
4.0
8.1
5.4
6.1
3.5
2.8
4.2
19.9
1.8
8.6
12.4
4.4
2.5
14.8
5.9
2.0
29.0
6.5
3.9
3.3
4.0
6.2
19.5
2.2
5.3
3.8
1.5
2.7
4.0
2.7
3.6
3.7
7.3
4.6
5.1
3.2
2.5
3.9
17.5
1.6
7.8
10.2
4.0
10.3
17.9
9.1
19.3
FY19E
44.2
10.8
4.2
12.4
17.8
12.1
16.6
12.0
23.0
369
1,040
681
973
389
253
442
194
2,384
302
1,224
116
955
249
99
391
557
230
786
1,053
2,476
167
722
2,714
1,532
238
1,269
99
6,272
186
340
375
882
-
1,100
489
323
523
243
3,334
358
1,312
129
1,130
240
-
465
738
394
926
1,230
3,295
215
894
3,044
1,648
298
1,288
114
5,281
167
393
2
-15
13
26
28
18
25
40
18
7
11
18
-4
19
32
71
18
17
33
29
24
12
8
25
1
15
-16
-10
16
12.4
7.7
13.5
41.0
13.6
8.7
16.6
3.1
67.6
12.9
46.0
13.0
15.7
3.3
5.5
17.5
19.1
18.6
12.7
24.8
86.2
7.8
33.4
72.6
85.9
7.2
23.7
6.6
132.1
3.6
7.0
12.9
12.7
15.7
42.2
13.9
9.8
24.1
5.9
112.9
13.6
63.9
8.9
21.8
8.0
7.6
18.5
34.0
22.1
20.2
29.4
105.1
8.7
30.4
104.1
80.2
7.6
35.1
8.3
137.8
4.5
11.9
18.6
17.6
19.4
44.6
14.0
12.9
29.0
8.1
166.7
16.3
93.7
10.8
24.7
12.0
10.0
21.1
41.0
26.2
30.9
40.7
126.7
10.8
35.8
144.6
103.0
9.9
42.9
10.4
176.1
6.0
16.0
13.9 14.4
15.8
8.3
8.5
7.7
115.2 108.9 99.2
31.1 27.7
29.6
17.5 22.5
23.4
8.1
12.5
12.9
15.1 20.7
24.3
37.7 30.8
30.1
86.2 107.5 137.7
34.8 18.6
18.3
10.2 12.7
13.1
5.9
12.5
16.2
8.6
11.7
14.8
14.8 13.4
13.7
13.6 23.3
27.4
29.8 28.6
27.6
7.3
8.5
13.5
9.9
10.7
13.9
31.6 32.5
34.5
26.8 26.0
27.4
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
13.0 14.5
16.1
19.5 18.0
20.7
27.4 26.9
28.8
9.5
14.8
17.5
1 September 2017
14

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 (%)
-0.6
-0.2
2.2
-1.4
-0.4
2.7
1.4
2.3
4.1
0.4
0.3
-1.1
0.6
1.8
-0.5
-1.2
-0.8
-3.1
3.9
-0.4
0.3
-0.9
-1.1
-0.1
-0.6
0.4
1.3
-0.4
0.3
-1.3
0.8
0.1
-0.2
-1.3
0.1
1.0
0.2
-0.4
-0.1
0.1
-0.3
-1.7
0.4
2.5
0.9
0.5
1.5
1.6
3.5
0.5
2.8
-1.3
-0.1
1.3
1.6
-2.2
1M (%)
-6.8
-2.4
0.0
-1.8
-8.3
-9.1
4.5
10.0
-3.3
-9.3
9.4
-4.1
-4.5
-0.1
-15.3
3.8
-3.5
-5.8
4.8
-5.9
-0.5
-1.4
-7.7
0.9
-5.1
-4.3
1.9
-7.6
-3.0
-16.9
-13.3
-7.9
-7.2
-8.4
-14.9
-11.4
-11.3
-14.0
4.8
3.9
-6.8
-3.1
10.6
5.9
-0.6
3.5
14.4
-2.6
-7.0
6.5
0.4
-2.0
-12.6
-3.8
-2.7
-10.4
12M (%)
-18.7
22.1
-5.8
32.5
-9.0
91.0
38.1
99.0
6.3
12.7
-6.5
35.4
52.4
-29.9
85.4
-15.9
53.0
-1.8
57.6
37.5
27.1
-2.0
39.8
12.8
21.0
82.0
37.0
28.8
-15.5
22.9
24.4
-24.4
27.6
0.4
12.8
9.8
-4.0
61.9
7.4
3.2
0.2
73.7
57.0
26.3
48.4
106.4
17.7
16.2
20.2
26.5
-1.1
-24.1
41.3
-19.9
-4.3
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 (%)
-0.3
-0.4
1.1
0.6
-0.3
0.8
-2.0
5.5
0.6
-1.2
-0.3
0.1
0.8
-1.0
-1.5
1.0
1.0
0.3
0.1
-0.6
0.8
0.9
1.6
2.2
-0.4
1.7
-0.5
0.7
0.8
-0.6
-0.2
1.3
-0.8
0.6
0.1
0.6
0.4
-0.6
1.1
-0.1
0.4
0.2
1.1
1.1
3.7
0.7
-0.4
1.0
-1.4
-0.6
2.3
1.4
0.1
-1.4
-1.9
-0.8
0.9
1M (%)
-5.9
6.6
-10.8
8.8
0.0
-5.4
-7.5
2.7
3.4
2.7
-4.7
-12.7
-11.5
-1.6
-14.2
1.8
0.5
4.1
6.6
3.9
2.3
2.0
11.6
-12.6
-1.4
-7.2
1.6
-2.1
-8.2
-5.6
-1.5
0.8
7.4
3.0
1.6
-2.0
-10.3
-2.2
5.5
-1.0
2.7
-5.7
5.2
8.2
3.1
5.2
2.6
0.0
-3.6
0.2
-2.1
-1.6
-14.4
0.8
-12.2
-7.9
2.3
12M (%)
15.7
56.3
-7.2
51.6
33.0
-3.7
-0.8
26.4
16.8
131.0
12.6
-40.3
1.3
33.9
2.8
6.2
7.9
34.2
0.6
5.5
48.1
63.1
53.1
18.6
26.8
-5.8
19.7
-21.0
-4.8
2.9
-0.8
0.8
22.0
16.9
8.4
-5.6
22.1
-14.9
32.8
8.5
23.8
7.9
8.3
19.9
-21.7
19.7
23.9
43.5
-3.0
9.8
-17.5
16.0
-37.1
-8.3
10.5
31.4
-0.2
1 September 2017
15

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 (%)
-0.7
-1.0
-5.1
-1.4
0.0
-1.2
-0.3
1.5
-0.6
2.8
-1.1
-0.5
-0.7
0.3
-0.7
-0.3
1.3
0.5
-1.2
3.3
0.8
-0.3
-0.2
-3.9
-0.5
0.1
3.4
2.4
0.7
0.9
1.0
-1.0
-0.3
0.7
0.2
0.0
-1.6
3.8
0.1
-1.7
0.9
-0.1
1.4
-0.7
0.7
-1.5
0.7
0.5
1.7
4.9
-2.2
-1.0
-0.2
1.9
1.8
0.9
1M (%)
3.7
-15.3
-6.0
-12.7
-6.1
-0.2
-13.1
-1.7
-4.9
-5.4
-9.2
-14.3
-9.7
-6.6
-8.7
-2.1
-0.8
14.9
-19.1
-2.8
-8.9
-3.9
-1.2
1.6
-8.8
-3.0
1.4
0.8
4.8
-1.9
-3.9
-11.0
-4.0
8.5
4.7
-10.7
15.1
3.1
-0.2
-4.0
10.2
12.4
12.3
0.4
2.9
-1.5
27.3
23.6
8.2
11.8
-1.3
-7.3
10.4
-1.3
5.7
13.5
12M (%)
-47.4
-34.6
-17.8
-27.7
-1.0
-21.2
-23.1
30.7
-33.8
-7.7
8.2
-4.5
-38.0
-5.8
-26.2
-9.0
-21.7
18.2
-20.7
-15.8
55.9
-19.0
-10.2
8.9
6.8
-6.0
12.6
-6.5
11.1
-29.6
47.4
-3.7
49.1
30.1
60.5
45.1
52.9
17.2
25.9
81.2
72.2
31.6
31.3
22.6
26.2
80.6
57.7
59.8
76.9
-0.8
-0.7
28.3
50.6
18.6
47.5
Company
Technology
Cyient
HCL Tech.
Hexaware
Infosys
KPIT Tech
L&T Infotech
Mindtree
Mphasis
NIIT Tech
Persistent Sys
Tata Elxsi
TCS
Tech Mah
Wipro
Zensar Tech
Telecom
Bharti Airtel
Bharti Infratel
Idea Cellular
Tata Comm
Utiltites
Coal India
CESC
JSW Energy
NTPC
Power Grid
Tata Power
Others
Arvind
Avenue Super.
Bata India
BSE
Castrol India
Century Ply.
Coromandel Intl
Delta Corp
Dynamatic Tech
Eveready Inds.
Interglobe
Indo Count
Info Edge
Inox Leisure
Jain Irrigation
Just Dial
Kaveri Seed
Kitex Garm.
Manpasand
MCX
Monsanto
Navneet Educat.
PI Inds.
Piramal Enterp.
SRF
S H Kelkar
Symphony
Trident
TTK Prestige
V-Guard
Wonderla
1 Day (%)
0.2
1.4
-0.1
-1.2
-0.3
0.5
-0.2
-0.3
-0.7
0.3
-0.8
0.4
0.6
2.5
1.2
-0.3
-1.8
3.5
-0.1
-1.4
-0.5
1.1
0.4
1.2
1.9
1.1
-1.0
-0.9
-0.7
-0.2
0.3
1.2
3.0
5.7
2.3
2.2
1.4
1.6
-0.2
1.2
3.9
1.3
-0.8
-3.0
-0.6
-0.1
3.0
0.4
0.0
3.8
-2.5
2.2
-0.4
-0.8
1.2
-0.3
1M (%)
0.9
-3.0
4.1
-9.5
-8.6
-1.5
-3.0
1.2
-3.2
-3.8
-5.9
0.1
11.1
3.5
-1.5
2.4
-6.0
-1.6
-2.5
-4.5
7.7
-4.3
2.8
-2.1
-3.4
1.0
13.3
15.9
-10.2
-2.9
-14.5
-1.4
13.6
-0.7
-1.0
-5.1
-21.7
-3.7
-2.2
-7.1
3.3
-19.4
-11.2
-1.4
-6.4
-9.7
1.5
-5.7
-8.0
0.6
-10.4
-12.5
19.7
-2.0
5.0
-3.4
12M (%)
6.0
10.6
34.6
-11.7
-8.4
15.0
-17.9
7.9
24.6
-0.5
4.2
-0.6
-8.7
21.9
-26.5
28.9
7.7
-2.7
24.2
-28.7
52.3
-13.1
5.9
18.7
1.1
18.5
27.6
-13.2
17.0
64.9
25.4
-15.3
5.4
39.0
-28.8
15.6
-12.1
17.2
-21.2
55.1
-33.9
6.5
6.6
5.8
60.5
-10.5
47.6
-10.8
-30.4
10.2
90.8
27.7
37.0
-16.1
1 September 2017
16

THEMATIC/STRATEGY RESEARCH GALLERY

REPORT GALLERY
RECENT INITIATING COVERAGE REPORTS
Rs

DIFFERENTIATED PRODUCT GALLERY

Disclosures:
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MOSL is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock
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a)
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Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
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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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without any prior approval. MOSL, its associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities
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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
13 December 2016
24