6 September 2017

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Today’s top research idea

Hindalco: Remains focused on delivering stakeholder value

We hosted Mr Satish Pai, MD of Hindalco Industries, as part of ‘CEO Track’ at our

annual conference. Key takeaways:



Business model has become robust, with cost leadership and stability in Indian

upstream operations, leadership in global downstream operations, and

strengthened B/S.



Superior technology selection for smelters helped it achieve stable operations.



Novelis will continue expanding in auto space, where it enjoys global

leadership in supplying flat rolled products. Expect new investments in

US/China. Pricing pressure in can business has eased. Electric vehicles should

accelerate light weighting of vehicles, driving aluminum demand.



Continues focusing on deleveraging and allocation of capital in downstream

(less capital-intensive); pre-paid INR78b debt, plans to prepay another INR30b

in FY18.



Focus on deleveraging, operational excellence, customer centricity and cash

conservation to deliver stakeholder value.

Research covered

Cos/Sector

AGIC: CEO Track

Takeaways

AGIC: Management Says

India Electricals

Key Highlights

Hindalco | Larsen & Toubro | Bank of Baroda

Auto | Capital Goods | Cement |Consumer | Financials |

Healthcare| Metals | Oil & Gas | Telecom | Utilities | Others

Energy Efficiency Services Limited (EESL) order tracker

Piping hot news

IndiGo may buy stake in Jet Airways if Air India bid fails



InterGlobe Aviation Ltd-run IndiGo is convinced there is an opportunity for a

large India-based airline with a significant international footprint, and may

consider investing in Jet Airways (India) Ltd…

Chart of the Day: India’s share in world market cap above historical average

Trend in India's contribution to world market cap (%)

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

Bharti Airtel's $500-million IPL

bid signals strong content play

Bharti Airtel’s aggressive $500-

million bid to grab digital media

rights of the Indian Premier

League (IPL) cricket tournament

signals the market leader’s intent

to take on 4G newcomer Reliance

Jio Infocomm on the content and

digital services front…

2

Govt eyes Rs2,500 crore from selling 15% stake in NLC India

With the government successfully raising about Rs9,100 crore by selling a

stake in NTPC Ltd through an offer for sale (OFS), it is now looking at

selling a 15% stake in another power producer NLC India Ltd, two people

aware of the developments said…

3

GDR manipulation: Sebi bars

19 companies from securities

markets

The Securities and Exchange Board

of India on Tuesday barred 19

domestic and foreign firms from

securities markets for

manipulation in issuances of

global depository receipts (GDR)

and warned several others

including foreign institutional

investors (FIIs)…

4

GST impact: Nikkei India

Services PMI declines to 47.5

in August

Services sector activity remained

weak in August due to the

perceived impact of the goods and

services tax (GST), a private

monthly survey has revealed…

5

Maruti Suzuki will not hold

back in bringing in electric

cars: R.C. Bhargava

India's largest car manufacturer

Maruti Suzuki will not hold back

electric vehicles in India and will

come up with models based on

customer preference, according to

company chairman R C Bhargava.

The auto major, which has around

48% market share Indian

passenger vehicle segment, also

expects its sales to grow in double

digits over the next 3-5 years…

6

Gold prices climbed to a one-year

high on Tuesday as the U.S. dollar

eased and safe-haven buying

demand remained robust due to

continued concerns over North

Korea’s nuclear tests…

7

Indraprastha Gas (IGLBSE 4.47 %),

Indian Oil-Adani Gas combine and

Hindustan Petroleum-Oil India

joint venture are set to win

licences to distribute gas in one

city each in the latest round of

auction, according to people with

direct knowledge of the matter…

Gold jumps to one-year high as

geopolitical risks grow

IGL, IOC-Adani, HPCL-Oil India

set to win gas distribution

licences

6 September 2017

2

CEO Track

Hindalco

Mr Satish Pai

Chairman

Remains focused on delivering stakeholder value

Takeaways from CEO track

We hosted Mr Satish Pai, MD of Hindalco Industries, as part of ‘CEO Track’ at our annual

conference. Key takeaways:



Hindalco's business model has become robust, with cost leadership and stability in

Indian upstream operations, leadership in global downstream operations, and a

strengthened balance sheet. More than 60% of its EBITDA is derived from the

conversion business and is independent of LME.



Hindalco is present across the entire value chain of aluminum. There are only a few

global comparables, e.g. Hydro and Hongqiao. Most other players are either upstream

or only downstream producers.



Superior technology (Pachney) selection for its smelters has helped it achieve stable

operations, while competitors are struggling to stabilize GAMI pots (Chinese).



Novelis enjoys global leadership in supplying flat rolled products to the auto industry.

It will continue to look for expansion in auto space to cater to strong demand growth.

New investments are expected in the US and China. Pricing pressure in the can

business has eased. Electric vehicles are likely to accelerate light weighting of vehicle,

driving demand for aluminum.



Hindalco continues to focus on deleveraging and allocation of capital in downstream,

which is less capital-intensive. The company has already pre-paid INR78b debt, and

plans to prepay another INR30b in FY18.



Hindalco remains focused on accelerated deleveraging, operational excellence, higher

value addition, customer centricity and cash conservation to deliver stakeholder value.

6 September 2017

3

Larsen and Toubro

Mr. S N Subrahmanyan

MD and CEO

Government spend on infrastructure drives growth

Private sector capex still 1-2 years away from a recovery



We hosted Mr S N Subrahmanyan, MD and CEO of Larsen and Toubro (LT), as part of



‘CEO Track’ at our annual conference. Key takeaways:

Strong push by the government toward increasing infrastructure investments

continues – key areas seeing positive momentum are T&D, Water, Rail, Metros,

Defense, Smart Cities and Renewables. Private sector capex is still 1-2 years away.

Infrastructure sales can grow from INR700b currently to INR1t in the next 3-4 years.

The company continues to strongly focus on digitalization across business segments in

the construction space – using technology to track assets, material and manpower

movement – to cut costs. It expects to reduce 2-3% of operating costs via increased

use of technology and digitalization.

Despite the fall in oil prices, LT is relatively less affected since it is targeting social

infrastructure orders – key segments in focus are transmission and distribution,

metros, roads, hydrocarbons, and stadiums. Projects in these areas are on track for LT,

and payments are being received on time.

Strategy on manufacturing subsidiaries: a) Forgings – with the Fukushima tragedy,

nuclear power plant orders have slowed down. NPCIL is looking to order 7GW of new

plants, and this would help get orders for the forgings plant. b) MHPS JV – coal-fired

power plant orders have dried up and whatever little is available is taken by BHEL at

cut-throat prices. It has orders in hand, but would like to see the pace of orders to

improve. c) Shipbuilding – targets to win one of the four large projects from the Navy,

which will help it turn profitable from FY20.

Hyderabad metro: One stretch (the Nagole-Hitec City) is likely to get commissioned by

November 2017; would make losses in the first few years as depreciation and interest

costs hit P/L. Most issues with the state government have been resolved, and it

expects to get compensation for the delays and resultant cost overruns. Expect these

issues to be sorted out in the next 6-7 months.









6 September 2017

4

Bank of Baroda

Mr. P S Jayakumar

MD & CEO

Structural changes for profitable growth

Takeaways from CEO track

We hosted Mr P S Jayakumar, MD and CEO of Bank of Baroda, as part of ‘CEO Track’ at our

annual conference. Key takeaways:



Over the past two years, management has implemented significant structural changes

in credit, risk management, technology, HR division and liability branches, the benefit

of which is likely to be reaped in the ensuing years.



Post the transformation exercise, the bank remains confident of coming back to

above-industry growth rate and become more profitable. The bank is targeting 15%+

RoE in FY19.



The bank mentioned clearly that consolidation with any other PSU bank should be

value-accretive for shareholders, and would not be influenced by authorities or

market share considerations.



Mr Jayakumar mentioned that it too early to discuss about his continuity and still has

more than one year with the bank.



We like management’s focus on cleaning up the balance sheet and laying the

foundation for sustainable growth. We expect stress addition and credit costs to

moderate from FY19. Additional buffers like non-core financial investments, among

other options, will lead to dilution-free growth in the near term. Maintain Buy with a

TP of INR198 (1.1x June 2019E BV).

6 September 2017

5

‘Management Says’

Key takeaways from Motilal Oswal Annual Global Investor Conference 2017

Company

Takeaways

a. Capacity post phase-1 of Vallam plant (300k) would be 900k, assuming

old plant with capacity of ~130k stops bike production for increasing

plating capacity (biggest constraint for RE). It can do phase-2 at Vallam

(with additional capacity of 300k); can be executed in nine months.

b. RE will expand its dealer network from 750 currently to 820 by Mar-

18. It already covers all addressable markets (~480 cities). It believes it

can expand dealer network up to 1,000-1,100 without cannibalizing

existing dealers.

c. Riding gears business for RE, which was started four years back, is now

~INR1.5b. Accessories business is yet to start as currently it only offers

crash guard. In next few months, it will launch many new accessories

with a focus on quality as key differentiator vis-à-vis accessories from

3rd party. In the first six months, RE customer spends ~INR10k on

accessories.

d. Exports are huge opportunity, with targeted developing markets

having favorable biking culture and huge underlying volumes of

≤250cc motorcycle at ~47m. It is

targeting sweet spot on pricing at

USD4-5k, as volume segment has pricing of <USD2k (250cc) and high-

end motorcycles are priced at ~USD10k.

e. There is scope for further improvement in EBITDA margin with new

modern plant and leverage. Also, margin improvement so far was

driven by leverage. It is yet to focus on improvement in efficiencies.

a. FY18 guidance on volumes at high-single-digit or low-double-digit;

witnessing mid-single-digit retail growth currently.

b. Refreshed Maestro, post addressing issues, is driving recovery in

scooter volumes for HMCL. Similarly, Glamour is expected to recover

lost volumes post resolution of vendor-related issues.

c. Festive season inventory build-up is underway, with HMCL's inventory

at 8-8.5 weeks as of August-end.

d. Discounts have come off post GST, as prices have reduced by 2-3%.

HMCL is not offering any discounts post GST.

e. While monsoons have been near average level on pan-India basis,

regional disparity (like below normal in south and parts of west, and

flooding in some parts) could influence demand in the rural market.

For example, deluge in Mumbai has led to loss of momentum in

volumes, although it is expected to recover.

Impact

Automobiles

+ ve

+ ve

Eicher Motors

+ ve

+ ve

+ ve

Neutral

+ ve

+ ve

+ ve

Hero MotoCorp

- ve

6 September 2017

6

Mahindra & Mahindra

a. Expects tractor industry to grow at 10-12% in FY18. Even after strong

growth of last year, tractor industry volumes are yet to cross previous

peak. Over the long term, while tractor volumes would grow ~8%

CAGR, revenue growth for FES business could be much higher, driven

by ramp-up in the agri-implement business. It is yet to witness any

negative impact of farm loan waiver on tractor financing.

b. Expects UV industry to grow by 10-12% in FY18, with MM growing at

least in-line. Buoyancy of rural market is witnessed in automotive

products for MM. Bolero and XUV are seeing pick-up.

c. In UVs, it has several product actions in next 12-15 months, with

launch of U321 in 4QFY18 (MUV competing with Toyota Innova) and

S201 in festive season of CY18 (Compact SUV on Tivoli platform). It

also would launch refreshed KUV, TUV and XUV.

d. Volumes for Bolero have seen significant improvement over last year;

TUV is also witnessing some recovery post higher powered engine. It

is hopeful of a recovery in KUV volumes post refresh in near future.

e. Expect 2W losses to come down to INR2.5b in FY18 and INR1b in FY19

as it has been restructuring operations with a focus on niche

segments.

f. Scorpio Hybrid price increase of 3-4%; cost increase of 15%. Scorpio

Hybrid might benefit if expected increase in cess on luxury car is not

applicable to hybrid.

Takeaway



BHEL



Larsen and Toubro



Thermax

a. Executable orders have increased from INR62.5b to INR76b, as Yadadri

order has started to show traction.

b. New orders worth INR250b (5GW) expected to be finalized in the near

term.

c. For FGD, NTPC has floated tenders for 11 projects (17GW) worth

INR180b; second package of seven projects (7GW) worth INR70b is

expected to be floated soon.

d. BHEL has tied up with MHPS for FGD and with Kawasaki for Railways.

a. Private capex continues along with spending on B&F. Public sector

capex driven by a) government capex via the Union Budget, b) PSUs

and c) multilateral agencies.

b. Strong traction seen in orders for Roads, Transmission and

Distribution, Metros/Rail/DFCC, Hydrocarbons and Water.

c. T&D segment continues to see strong traction with orders worth

USD2b annually – 50% from India. While domestic substation market

is witnessing severe competition, transmission line is restricted to a

few players.

d. Water has grown to become one of the largest segments in terms of

orders inflow and sales of >INR1b.

e. 1QFY18 saw strong growth in domestic infrastructure execution as a

few large transportation infra orders got into execution. Would expect

this trend to continue in FY18.

+ ve

+ ve

+ ve

+ ve

+ ve

- ve

Company

Capital Goods

Impact

+ ve

+ ve

- ve

+ve

BHEL

+ve

+ve

- ve

+ ve

L&T

+ ve

+ ve

- ve

6 September 2017

7

Thermax

a. Private capex is expected to remain muted for a few more quarters,

given 1) banks’ reluctance to lend money and 2) underutilized capacity

across core sectors of the economy.

b. Steel, Power, Cement and Refining are key segments driving orders.

Power and Steel may remain in a downturn for some time. Cement is

seeing some enquiries for WHRG, and some small orders are being

seen from sponge iron players. Refining and fertilizers are also

witnessing an improvement in order finalization.

c. Expect orders for FGD to be finalized soon, with 5-6 credible players in

the fray for winning the orders – each player can get orders worth

INR10-15b.

d. With increased thrust on exports, can grow the a) boiler business at

10-15% CAGR, chillers from INR3b currently to INR5-6b over the next

three years, and EPC at a 10% CAGR.

Takeaway

a.

- ve

- ve

+ ve

- ve

Impact

Company

Cement

Volume growth is likely to be higher than industry, led by ramp-up of

plants in the east. New plants in eastern region can see further

utilization improvement.

ACC's profitability is likely to see improvement, led by better

utilization of both old and new units.

ACC is likely to increase only maintenance capex over the next couple

of years, with no additional capacity.

Demand in central market continues to be affected by sand mining

issue.

VSF prices continue to remain strong despite minor volatility. Cotton

prices remained stable in 1QFY18, recording 22% increase YoY.

Apparel markets growth in India is 9% v/s global average of 4%, which

augurs well for VSF business.

Domestic caustic prices remain firm, in line with global prices. Excess

supply of chlorine remains an overhang for the industry.

Liva was started as a branding initiative. The specialty fiber in VSF

gives Grasim a pricing advantage.

Total caustic demand in India is 4.5mt, and Grasim caters to 1.5mt.

Vilayat Caustic Plant Brownfield Expansion of 144ktpa will be done at

a capex of INR4.4b.

Volume in FY18 is expected to increase 10% YoY, led by growth in

eastern operations.

Cost curve is expected to remain at present levels for major part of

FY18.

The company intends to increase the capacity in the east by 3mt at a

capex of INR11b.

Gross debt for the company is at INR14.5b, of which INR8b is long-

term debt.

ACC

b.

c.

d.

a.

b.

c.

Grasim

d.

e.

f.

a.

b.

Ramco Cement

c.

d.

6 September 2017

8

a.

b.

c.

Sanghi Industries

d.

e.

f.

a.

Shree Cement

b.

c.

d.

Management expects volume growth to pick up in 2HFY18, led by

pick-up in infra spend due to upcoming elections in Gujarat.

SIL will continue to see strong volume growth, led by higher sales to

Mumbai market by way of coastal operations post the acquisition of

two ships from China.

SIL expects profitability of its core units to improve meaningfully, led

by improved utilization of present operations on account of increased

sales to Mumbai market.

Commencement of WHRS of 13MW by FY18-end would further

reduce power and fuel cost.

Significant savings are likely to be achieved as SIL plans to change its

product mix to 45% PPC as against current levels of 35%.

SIL is planning to increase its capacity from current levels of 4.1mt to

8.2mt by FY20 at a capex of INR12.5b, of which INR8b will be through

debt and INR4.5b through internal accruals.

The company plans to increase capacity from 29mt currently to 40mt

by adding capacity in East, North and South.

SRCM will venture into south markets by adding 3mt of integrated

capacity and then subsequently adding a grinding unit.

Shree Cement expects to grow at 1.5-2x times industry growth.

Capex of INR15-20b for the next one year to fund future expansion.

Impact

Company

Takeaways

a.

Consumer

Government has not scratched the surface on compliance on GST.

This process will hopefully happen over the next year, offering

benefits for organized players. Most large raw materials are imported

or are from large suppliers, and thus, can be traced back.

b.

Sales have slowed down in the past two years because of the

following factors, but will also improve because these issues have

been addressed.

1.

Commodity cost deflation was a big factor in sales slowdown and is

now a thing of the past.

2.

Rural growth which was 2x that of urban growth slowed down to

well below urban levels – an issue that is now likely to be addressed

because of two years of good monsoon and government schemes.

3.

The company was gradually reducing exposure to wholesale channel

ahead of GST implementation, which affected sales for a couple of

quarters.

4.

HUL admits that it was under-indexed in the herbal space – an issue

that it has now addressed with herbal variants in each key category,

Indulekha acquisition, launch and success of Lever Ayush range, as

well as introduction of global herbal brands like St Ives and Citra.

c.

20% of portfolio includes products of the future, including segments

like hand wash, body wash, hair conditioner, fabric conditioner and

green tea – all of which have less than 10% penetration, providing

huge opportunity for growth.

d.

Project Live Wire enables strong data analytics and decision-making,

with complete freedom given to business heads to prioritize areas of

growth based on data analytics.

Hindustan Unilever

6 September 2017

9

ITC

Marico

a.

Cigarettes



It appears that, at some level, the government may

acknowledge that there is an over-reaction and may hold taxes for

at least the next year.



Portfolio level 12% hike this year – Feb and July together.



Volumes will be under pressure for next two quarters

.

b.

Other FMCG



In Atta and noodles, its margins are equal or better than industry

peers; however, it is not so in biscuits. The company is close to

market leadership in cream biscuits, but is number 3 in cookies,

which is a higher-margin product. With increased focus on

cookies, ITC may bridge the margin gap with the market leader.



Overall, ‘other FMCG’ margins are targeted to improve by 60-70bp

every year.

c.

Hotels



Pricing has increased by 5-7% in each of the last two quarters, as

demand is outstripping supply. However, it is still early to call out

a big recovery as pricing is around 20% lower than previous peak,

whereas cost has increased substantially.

a.

Management has significant plans for direct reach expansion.

b.

Management is also making significant efforts to increase van routes,

and investing in more vans to pick up some of the slack from

wholesale disruption.

c.

The company expects B2B and B2C parts of modern retail to pick up

some of the slack from the problems that are likely to arise for

traditional wholesale.

Takeaways

Impact

Company

a. Post GST implementation, working capital demand is picking up from

SMEs.

b. CPs are the new benchmark for corporate loan pricing. AA and above

Axis Bank

rated corporates are borrowing at ~6.9%.

c. Have INR18b exposure to the next set of NCLT-related accounts,

against which it has provisions of ~INR8.5b.

a. Business has come back to normal in most geographies, except some

districts in Maharashtra.

Bharat Financial Inclusion

b. Management is confident of achieving 50% AUM growth in FY18,

driven by a pick-up in the number of loans disbursed.

c. The company will be a tax-paying entity (on P&L) from FY19.

a.

The company has not securitized any assets in the second quarter due to

Chola

Financials

confusion regarding taxation issues under GST.

b.

Growth in VF segment has been good, and the company maintained its

guidance for the year. Despite competitive pressures in this segment, margins

will remain stable due to lower cost of funds.

City Union Bank

a. Bank has guided for 15% to 18% for loan growth for full-year FY18.

Second quarter will be impacted by GST.

b. Slippage ratio guidance of 1.75% to 2%

c. Target cost-to-income ratio of 40-42%; target CD ratio of 80-82% by

FY19.

6 September 2017

10

a. With equity capital coming in post the life insurance stake sale, the

company is well capitalized for the next three years. The company

expects to grow its loan book by 18-20% over the medium term.

b. The company will now maintain 4-6 months of liquidity on its BS as a

Dewan Housing Finance

prudent measure. While this will cause some drag on yields,

management expects margins to remain stable over the medium term.

c. Expect the C/I ratio to decline by 150bp over the next 12-18 months.

The main areas for cost reduction are advertising and legal costs.

a.

Have done 9500 CLASS cases since inception of the scheme. In YTD FY18, it has

done 3000 cases. Since it does own due diligence before sending the

application to NHB, the rejection rate by NHB is less than 1%.

b.

Facing competitive pressures, especially from PSU banks, which are poaching

their existing customers. Hence, prepayment rate increased in the previous

quarter.

c. Incremental spreads are 2.5% v/s on book spreads of more than 3% due to

yield pressure.

GRUH

HDFC Bank

L&T Finance

Piramal Enterprises

Punjab National Bank

PNBHF

a. Farmers are in wait-and-watch mode in spite of being capable of

repayment.

b. BS-IV impacted CV manufacturing post April. CV manufacturing picking

up now.

c. Expects digitization initiatives to yield 50-60bp of CI ratio reduction

every year.

a. The company may achieve 18% RoE ahead of the 2020 schedule.

b. Rural and housing finance segments will be key growth and RoE drivers.

c. The tax benefit on account of goodwill amortization will last till FY21.

a. The company has received the NHB license to start an HFC. All retail

home loans will be booked under the HFC.

b. Management believes the white space in its segments is huge. Plus, the

company is focusing on entering into new segments in the financing

business. While management did not allude to a number, it believes

that it will grow faster than the market.

c. Expect margins in the OCT business to improve to 20% by FY20.

a. As the resolution timeline of 180 days gets over, FY18 GNPA levels will

be lower than FY17 levels. Approx. 18K cr will be settled through IBC

route.

b. Anticipating 12 to 15% growth in small loans (ticket size < INR5cr).

c. 55% of the book is MCLR-based, and every quarter 5-10% of the book

gets re-priced.

d. Bank already has started providing 10% to 15% for wage hike, which is

due to start in November.

e. Bank will start unlocking value in subsidiaries before FY18. Planning to

sell approx. 7% stake in PNB Housing.

a. 60-65% of its underwriters are qualified chartered accountants. The

strong team gives it an edge in underwriting self-employed home loans

and LAP.

b. The company has exposure of INR1.8b to home buyer of Jaypee

Infratech projects.

c. The company will continue to grow at 1.5-1.8x of the market. With

operating leverage kicking in, the expense ratio should decline.

6 September 2017

11

RBL Bank

Shriram City Union

Finance

a. Have piloted cross-selling of home improvement and two-wheeler

loans in financial inclusion book.

b. Wholesale book growth will slow down gradually; bank intends to grow

wholesale through non-funded exposures.

c. Branch-level targets are given for deposits, and cross-sell of third-party

products mostly.

a. The month of July has been good in terms of growth. Management

expects to achieve mid-to-high teens AUM growth in 1HFY17, and

closer to 20% AUM growth in FY18.

b. While write-offs have increased, management mentioned that it

prefers to write-off loans as there is an associated tax benefit.

c. There has been some pick-up in 2W disbursements after a sluggish

1HCY17.

Takeaways

a. Demand is recovering post GST hiccups, but management expects sales

recovery to take some time. It guided for robust 2QFY18 and 10-12%

growth in FY18.

b. On the recent Draft Pharmaceutical Policy 2017 (which has proposed to

ban ‘Loan Licensing’), the company mentioned that it may have to incur

capex, if implemented, as 50% of its manufacturing is outsourced. It also

cited that the policy will have a major impact on small companies and

not on big companies.

c. The company expects to launch ~30 products every year in the next

three years (8-10 launches every year), which have a market size of

USD15b. 40% of the basket is shared FTF and para IV.

d. Filing for onco orals and derma will start from 1QFY19. Of the 50

pending approvals, 15-18 are para IV. US business is expected to grow at

a three-year CAGR of 20-25%.

e. Management guided for INR700cr capex in FY18 and INR500cr in FY19.

a. For FY18, the company has guided for a higher tax rate (v/s the previous

year’s 20%), as the tax benefit from Baddi will end. FY19 tax will again

come down to 12-15%, led by tax benefits from its new facility in

Sikkim.

b. Comments on the New Pharmaceutical Policy 2017: (1) Cost will

increase due to higher compliance. (2) Small players will be most

impacted. (3) Most of Alkem's facilities are WHO-compliant.

c. The company lost sales of the entire month of June due to GST;

recovery of lost sales to take 4-5 months. Inventory level after coming

down to 15-18 days has increased to 28-32 days. New normal for

inventory level will be lower than before (42-45 days).

d. With the ongoing regulatory issues, the US has become a tougher

market. The company expects to file 12-15 ANDA every year with 10-12

approvals.

Impact

Company

Healthcare

Alembic

Alkem

6 September 2017

12

Aurobindo

Jubilant Life Science

a. The company does not have a high dependency on loan licensing.

b. Management has guided for high-single-digit to low-double-digit

growth in the US business. Tax guidance of 27% for FY18.

c. In biosimilars, phase-I will start in FY18 (USD 5m cost), Phase-II in FY19

(cost USD 35m), and filings will start from FY20.

d. The company launched 15 products in 1Q and expects to launch 40-45

products in FY18.

e. ARV will be launched in 3QFY18, but meaningful contribution will start

from FY19.

a. With acquisition of Triads, the company has forward integrated for

radiopharmaceuticals, and is now present across the value chain.

b. Company is well poised to grow at 16-18% CAGR over FY17-20 in the

limited-competition radiopharmaceuticals space in the US.

c. Low impact of pricing pressure in US generics due to higher share of

specialty pharmaceuticals.

d. Outlook in Life Science Ingredients business to improve further, with

reduced competition from Chinese companies.

a. EBITDA margin to gradually improve once formulation revenue kicks in.

b. Reasonably confident to get good market share in Metformin, post

ANDA approval, due to cost efficiency and inherent growth in molecule.

c. Company has done 4 ANDA filings till now; guided for 30 filings by FY20.

a. Formulation business continues to grow, with increasing market share

from approved products.

b. Company has 25 ANDA filings till date; guided for 7-8 ANDA filings in

FY18.

c. Company guided for 15-18% three-year CAGR in CRAMS business due to

better capacity utilization and increased business from its customer.

Takeaway

a. India long product prices have increased by INR2,000/t and flat

product prices by INR3,000/t in 2Q. Further price hikes are likely.

b. Oman margins will benefit as the new bar mill ramps-up, improving

product mix. Margins are also supportive on rising steel prices, while

costs are largely fixed due to favorable gas price contracts.

c. The new blast furnace at Angul was commissioned in early August, and

has reached ~60% of the rated capacity. The Blast Oxygen Furnace is

likely to be commissioned by December.

d. The company is open to monetize its coal mines and drive leveraging.

e. The recent increase in merchant power prices should drive profitability

of its power assets.

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

Impact

Laurus Lab

Shilpa Medicare

Company

Metals

Jindal Steel and Power

+ ve

6 September 2017

13

Vedanta

a.

Aluminum:

Exit run-rate of 2mt. The 4

th

line of 0.3mt is under

evaluation. Alumina sourcing is 50:50 captive and imported. Lanjigarh

will be expanded to 1.5mt by FY18 and 2mt by FY19. Coal availability

has been an issue in the last six months. Looking at converting the

remaining 600MW plant to CPP.

b.

Power:

TSPL should generate EBITDA of INR13-14b annually. Total coal

requirement across its power plants is ~25mt, of which ~10mt is

through linkages.

c.

Iron ore:

Targeting ~8mt from Goa (5.5mt) and Karnataka. Margins are

USD10/t after the compression in spreads for lower-grade iron ore.

d.

Zinc India:

Shaft at SK and RAM mines will commence by 2Q/3QFY19.

Target is to reach mine production of 1.2mt and silver production of

700kt by FY20E. CoP would be ~USD800/t @ 1.2mt production level.

e.

Zinc International:

Gamsberg production of 250kt at full production

level of phase-1 and CoP of USD1,150/t. Skorpion and BMM together

should produce ~160kt.

Takeaways

a. Doesn't expect problem in CY18 for offtake of US volumes; trying to

place volumes for CY19.

b. Older petchem plant is running at 110% utilization, while new plant is

running at 80-90%.

c. Tariff revision for six pipelines came some time back, while that for

eight others is now awaited; doesn't expect much increase in tariff.

Unified tariff is under discussion.

a. Vizag expansion to add USD3/bbl incremental GRM.

b. Expect 3-4% increase in marketing margins.

c. Does not expect much competition from private players.

d. Would need INR300b additional debt to fund projects in next 4-5 years.

a. Taxi segment to drive growth; witnessing conversion of 4,500 private

cars per month.

b. Since gas is not under GST purview, UP state govt. has allowed tax

credit separately for industrial consumers.

c. Gurugram has a peak potential of 1.5mmscmd.

d. Expects to maintain current EBITDA/scm

a. No increase in marketing margin due to daily pricing. Reduction in

logistics cost has resulted in net marketing margins.

b. Total investment of INR1.8t in six years.

c. More of heavy crude processing has resulted in higher refining

margins.

a. Expects 5-7% growth in overall volumes.

b. Raigad could give a peak of 0.6mmscmd in 3-5 years.

c. FY18 EBITDA/scm would be higher than that in FY17.

d. Doesn't expect any regulatory intervention as sourcing is free market.

+ ve

Company

Oil and Gas

GAIL

HPCL

IGL

IOCL

MGL

6 September 2017

14

Company

Technology

Takeaways

a. In IMS, the rebid market is strong, and new offerings like DryICE are

helping win deals. Automation is a clear differentiator for HCLT.

b. Although there are no large deals in the pipeline in ER&D, the recent

acquisitions are helping expand markets and presence.

c. Applications business has been seeing strength on the back of digital,

automation and customization of standardized platforms.

a. The company sees no threat at the moment from increased aggression

by competitors in the recruitment space. INFOE has its war-chest ready,

but will wait-and-watch on competition for a while.

b. RERA-related uncertainty is expected to lead to softness in 99acres in

the short term. However, it is a positive move in the long term.

c. The cost structure of INFOE is largely stable, with spend in functions like

marketing, facilities and technology in control. Recent margin accretion

has been because of this optimization.

a. MCX will be launching Options on 1kg gold to start with; nine contracts

are currently eligible for launch, as per the SEBI guidelines.

b. Now that AIFs have been allowed to trade in commodities, the next step

would be to allow mutual funds, on which the SEBI is already working.

c. A unified license should result in increased competitive intensity and

pressure on pricing.

a.

Positive on overall performance as equity markets will continue doing

well, led by [1] GDP growth expectations, [2] Higher public

shareholding, and [3] Increasing turnover velocity.

b.

There are additional revenue opportunities in the form of data and

indexing, global alliances, increased product launches and penetration

in other asset classes.

c.

Profitability maintenance is expected going forward as the cost

structure is largely stable and the outlook on volume growth is positive.

a. Margins should stay expanding from 14.3% levels of 1Q, and targeted

exit EBITDA margin is 16%.

+ ve

+ ve

+ ve

- ve

- ve

+ ve

+ ve

+ ve

- ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

- ve

HCLT

INFOE

MCX

NSE

Persistent

TCS

b. The IBM partnership is also on track to break even by the end of the

year with revenues growing and costs getting rationalized.

c. Growth in digital should revive in 2Q after some slippages impacted 1Q

growth.

a. Situation at Retail and BFSI vertical has not changed much in the last

couple of months. That said, the challenges persist in few accounts and

not spread across large clients secularly. More clients are growing than

shrinking (in number and value) in both the verticals.

b. While appreciate margin band of 26-28% EBIT remains, current year's

growth may not be supportive of that band. Absorption of wage hikes

will be difficult.

c. The reorganization of services is to drive adequate focus and bandwidth

in the big bets. Leadership across these segments are people that have

scaled their units to a billion dollar plus.

- ve

+ ve

6 September 2017

15

TECHM

a. Expect 2-5% growth in Telecom this year, and 8-10% in Enterprise.

Margins are expected to improve on a sequential basis through the

year.

b. Margin expansion will be led by improved profitability in acquisitions

and higher operational efficiency.

c. Integration of recently acquired entities has been smooth, reflected in

joint deal wins over the past few months.

a. The P&S business has EBITDA margins of ~4%, which is on the higher

side compared to global peers. A change in business mix and scale-led

operational efficiencies can further increase margins.

b. In the recently acquired Security business, the company intends to foray

into e-security, and expand beyond Bangalore, which currently forms

80% of its revenue.

c. The Industrials business has been seeing a turnaround because of

expansion of capabilities and entry into newer segments.

a. Maintaining the outlook of catching up with industry average sequential

growth by 4QFY18. WPRO’s relatively better revenue trajectory v/s

previous quarters is on the back of bottoming-out of some troubled

areas in segments such as Energy compounded by success of selling

new technologies in verticals such as BFSI (+).

b. Margin decline has been majorly a function of acquisitions integrated

(~300bp impact). Excluding that and currency, the company has

managed to keep margins within a band thanks to revenue productivity

uptick from Automation, despite pricing and volume concerns in

traditional segments, and wage hikes every year. Portfolio differences

to peers such as India / ME exposure drives lower relatively (-).

c. Will continue to remain acquisitive, as it attributes better capabilities in

Digital to a mix of organic and inorganic investments.

Takeaways

Traditional segment:

Revenue is expected to continue growing at 6-7%.

Traditional segment’s EBITDA margin, which had contracted from 31% to

27% due to the sale of the data center business, should come back to

31%.

b.

Growth segment:

Should maintain accelerated pace of growth at 25%.

UCC and media segment is expected to breakeven in four quarters, but

due to the new services, the overall growth segment portfolio should

breakeven in 6-7 quarters.

c.

Transformation segment:

The transformation segment is likely to grow

at a steady pace with 18-19% EBITDA margin, while ATM business will

take time to stabilize. Management continues to explore strategic sale

possibility of the ATM business.

d.

Leverage:

Debt stands at USD1.2b, about 3x net debt to EBITDA with 3%

interest cost. 30% of overall debt is rupee denominated, and the rest is

in foreign currency. Of the foreign denominated debt, 40-45% is dollar

debt. Management will not be aggressive in prepayment of debt as it

incurs settlement charges. It will deleverage naturally as debt reaches

retirement period.

e.

Capex:

Annual capex would be USD225-250m. Of this, 50-55% is data

sustenance capex and 25-30% growth capex.

a.

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

QUESS

+ ve

WIPRO

- ve

Company

Telecom

Tata Communication

6 September 2017

16

Company

Utilities

Takeaways

a.

Strong growth in demand

during August was driven by a decline in

power generation from hydro and nuclear plants. Coal inventories are

at an extremely low level of 12mt at power plants, which is likely to

trigger restocking cycle in the second half of FY18.

b.

Additional revenue:

COAL is expected to generate additional revenue of

INR5.27b from revision of rates for services provided in loading and

transporting coal from its mines. Further, it is likely to charge for

transporting coal for distance of less than 3km for the first time.

c.

Coal prices are inching up

in spot E-auction on improvement in

demand.

d.

Non-power linkages – premium rising in auction:

Old FSAs totaling 60-

65mt will all expire by the end of FY18. Consumers are replacing them

with linkages in auction. In tranche 1 and 2, nearly 37mt of linkages

(26.25mt to CPP, 6.3mt to DRI, 1.5mt to cement, 0.25mt coking coal to

steel) have been auctioned at an average premium of 9% w.r.t. floor

price. Premium in the second tranche auction was higher at 11% w.r.t.

the floor price. COAL has announced a third tranche of 28.5mt, and

expects to receive a higher premium. Cement sector has now started

substituting pet coke imports with domestic coal.

e.

Wage hike:

Management has provided INR30b toward wage hike, and

expects to conclude negotiations with labor within this budget.

f.

Focus on cost reduction:

There is a strong focus on reducing cost of

production. Nearly 56% of manpower is employed in producing coal

from underground mines accounting for just 6% of total volumes. The

losses from 177 underground mines were more than the profit in FY17.

Therefore, there are huge opportunities in reducing cost of production.

Unviable mines are being closed in steps. 19 mines were closed in FY17.

Approximately 37 mines will be closed in FY18E, while 12 have been

closed till August. Another 38 mines are likely to be closed in FY19

Takeaway

a. Recent volume decline was primarily driven by decline in CVO volumes.

CVO market volumes have declined more than 10% YoY, CSTRL has

retained its market share despite decline in volumes. Volume decline

was major in the month of June due to pre-GST destocking.

b. Management expects gradual recovery in volumes and guides ~5%

volume CAGR over the next few years.

c. Margin contraction in 2QCY17 can be attribute about 50% of that to GST

implementation and rest because of increase base oil prices. Base oil

prices increased 25-30% during the quarter as a result of an imbalance

in the demand and supply due to some refiner shutdown,

d. Large part of base oil price increase was one-time, but it hasn’t gone

back to pre-disruption levels.

e. Company has passed on the price increases over a period of time in B2B

segment. It has taken a 2-3% price hike in the month of May.

f. Management has passed on the full benefit of GST to the customers and

also supported distributors and channel partners to transition smoothly

to GST regime.

Impact

Coal India

Company

Midcap

Castrol

6 September 2017

17

Delta Corp

Escorts Ltd.

GHCL

Manpasand Beverages

a. The new airport in Sikkim is expected to commence from November

2017, which would significantly boost the number of visitations there.

b. The company plans to ramp-up its rummy business. The offices have

already been set up in Bangalore, and the focus as of now is on

strengthening back-end and setting up a call center, post which the

focus would increase on marketing and advertisement.

c. The company has launched rummy on android and expects to release it

on iPhone by December 2017. To offer a complete basket, the company

also plans to venture into its own fantasy league. The overall online

gaming business is expected to grow more than 30% for the coming

years.

d. The company plans to build the entire ecosystem for gaming and

entertainment on asset light model post the shift of casinos on land.

The set-up is expected to boost tourism and garner more investments,

providing increased scale of business for the company

a. The company expects to introduce a light-weight, rice-specialist tractor

in southern market and also launch 41-50HP in anti-lift category.

b. The company also is venturing into a niche segment of 28HP tractor for

orchards under Farmtrac. The total market size of such tractors

presently stands at 15,000 nos. dominated by Japanese players along

with Sonalika.

c. The company expects to witness significant traction in spare parts

business, the contribution of which will rise significantly in overall

revenue from INR2500m presently.

d. The company expects to cover 1000 acres of area in rental centers.

Starting with 25 centers, the company expects to reach utilization level

of ~70% in FY18 and a margin of ~20%.

a. The company has not witnesses any major challenge post GST

implementation, with margins hovering around 20-25% on an average.

b. The company expects strong traction in soda ash business going

forward, with overall demand of soda ash in India witnessing increase

from the present demand level of 2 lac ton.

c. The home textiles business is set to benefit going forward from multiple

factors viz. currency headwinds, favorable movement in raw material

prices, and discount stores in US flourishing. However, the company

also faces uncertainty over export incentive and rise in credit period by

US retailers.

a. The company has witnessed subdued offtake in the month of July on

account of GST; however, growth is back on track August onward.

b. The distribution to Parle-G network is scheduled to commence next

week in Kolkata first, and will be followed by distribution in Gujarat,

Maharashtra and UP.

c. The company launched Siznal and Jeera Sip, the responses of which

have been extremely strong.

d. The company expects to post revenue CAGR of 45% over FY17-19, while

the margins should remain stable at 19-20%

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

6 September 2017

18

Merino Industries

PVR

TTK Prestige

a. The company, being India’s leading manufacturer and exporter of

laminates, functions with three distribution networks – retail, OEM and

direct customer.

b. The company exports to ~70 countries and has widest size variety in

laminates (6 sizes). The business enjoys high barriers to entry, as no

other player industry-wide is present in all size categories, with 95% of

the competition being present in only 1 size category.

c. The company posted revenue of ~INR11b, primarily led by laminates

and its derivatives. Going forward, the focus would be on continuously

introducing value-added products, which enjoy higher margins.

d. The company usually introduces 10 designs every year, and on the same

lines, it expects average increase of 4% in production till FY20.

e. The industry is expected to witness consolidation, as post GST, the price

differential between unorganized and organized sector reduces. At

present, ~50% of the market is unorganized, which is shifting to

organized at a faster pace.

a. 2QFY18 witnessed relatively poor content, which is expected to result in

footfall de-growth.

b. However, the content pipeline for 3Q and 4Q remains strong, which

would lead to 15-20% growth in F&B and advertisement revenues.

c. The impact of GST (@28%) is expected to remain neutral, and with

continued tax exemption from states, margins are expected to expand

by 100bp gradually over the next three years.

a. The company has witnessed growth of 22% and 37% in sales in July and

August, respectively, on account of strong performance in south. The

strong growth is expected to continue in 3QFY18 as well.

b. The company has launched nine variants of water purifier and 30 SKUs

of cleaning solutions. The products launched in the last five years

contribute 80% to overall revenue.

c. The company expects to significantly reduce its cost by reducing the

number of warehouses from 27 presently to 13.

d. The share of exports is expected to go up to INR1500m in next five years

from ~INR500m presently. Coupled with strong growth in cleaning

solutions, the company expects to touch revenue of INR50b in the next

five years.

+ ve

+ ve

+ ve

+ ve

+ ve

- ve

+ ve

+ ve

+ ve

+ ve

+ ve

+ ve

6 September 2017

19

Capital Goods: Sector Update | 6 September 2017

India Electricals

Please refer our detailed

report dated June 2016

Energy Efficiency Services Limited (EESL) order tracker

Portfolio expansion in Lighting segment a key highlight









Product portfolio expansion in lighting segment:

EESL has placed orders worth

INR17.2b during April-July 2017, up 228% YoY. A key highlight of YTD FY17

ordering is expansion of product portfolio in the lighting segment (street lights,

industrial lamps, solar study lamps and luminaire). During the period, EESL

ordering was focused on street lights, industrial lamps, and air conditioners,

which formed 75% of the ordering as compared to 4% in the year ago period.

Industrial lamps (21% of the total ordering) is the new segment that EESL has

entered into. EESL has also ventured into solar study lamps and luminaire

segments, which formed 6% and 1%, respectively of the overall ordering.

Lighting portfolio forms 66% of the ordering:

Lighting portfolio (lamps, street

lights, industrial lamps, solar study lamps and luminaire) formed 66% of the

overall EESL ordering during April-July 2017 compared to 55% in the year ago

period. Within the lighting segment, street lights formed 43% of the ordering,

whereas new segments like industrial lamps formed 32%, study lamps formed

9% and luminaire formed 2% of the ordering. Street lighting dominated by

Gautam Solar, with a share of 28%; Phillips grabbed 23% share and Crompton

has a share of 8%. In the industrial lamps segment, HQ Lamps was market

leader, with 59% share; Crompton had 16% share and Phillips had 13% share.

Floats tender for procurement of 5m smart meters:

EESL has put out a mega

tender for procurement of 5m smart meters in July 2017; 100 companies have

participated. The meters procured will be utilized for implementation of smart

grid projects in Haryana and Uttar Pradesh.

Floats tenders for procurement of 10,000 electric cars and 4,000 chargers:

EESL

has floated a tender for procurement of 10,000 electric cars including complete

system warranty under the faster adoption and manufacturing of electric

vehicles in India (FAME) scheme of the Ministry of New & Renewable energy.

According to the tender, 3,000 AC (alternate current) chargers and 1,000 DC

(direct current) chargers compatible with Bharat AC-001 and DC-001 charger

specifications would be procured. The tender is part of the government’s plan to

promote electric vehicles in the country.

Valuation and view:

We like Crompton Greaves Consumer’s strong product

portfolio, established brand, market leadership position, wide distribution

network and robust RoCE profile (30%/31% in FY18/19). We maintain our

Buy

rating on the stock, with a target price of INR240 (35x June FY19E EPS of INR6.8).

For Havells, we maintain our

Neutral

rating, with a target price of INR455, given

its premium valuations.



6 September 2017

20

In conversation

1. Seeing pent-up demand for commercial vehicles : Shriram

Transport; Umesh Revankar, MD





In an interview to CNBC-TV18, Umesh Revankar, MD of Shriram Transport

Finance spoke about the latest happenings in the company.

Revankar sees pent-up demand in commercial vehicles. He said that depending

on economic recovery, commercial vehicle (CV) demand may be good in the

second half of FY18. On the IDFC deal front, he said the due diligence should be

over by end of September. Talking about GST, he said goods and services tax

(GST) is still a challenge. According to him, not everyone is onboard as of yet.

2. Reliance Home Finance to list in second half of September,

expects net worth at rs1,500cr : Reliance Home Finance;

Ravindra Sudhalkar, CEO





Home finance business of Reliance Capital demerged on Tuesday and the same

will be listed with the name of Reliance Home Finance on exchanges soon. It

meant Reliance Capital goes ex-demerger today.

"We will list home finance business in 15-20 days after September 6," Ravindra

Sudhalkar, CEO of Reliance Home Finance said in an interview with CNBC-TV18.

He believes net worth of the company will go up to Rs 1,500 crore after infusion

and he expects net interest margin to be in the upper range of 3.5 percent.

According to him, return on assets can be upwards of 1.6 percent by FY20.

Sudhalkar expects gross non-performing assets in the region of 0.65-0.8 percent

till FY20.

3. Positive on next five years for company and industry : Kajaria

Ceramics; Mr. Ashok Kajaria, Chairman & MD



Things have moved in the positive direction in the last five years. Things have

moved in the positive direction and we see a very positive scenario ahead

because of GST which has been implemented on 1st of July. Cumulatively,

Kajaria has a volume and revenue growth of almost 18-20% if you take five years

data, says Mr. Kajaria.

6 September 2017

21

From the think tank

1. Demonetisation was a self-goal? These numbers speak the

truth by: M Govinda Rao



The two reports released in the last week—RBI’s Annual Report and the

Quarterly Estimate of the GDP—have once again drawn focus to the issue of

economic slowdown and the impact of demonetisation in decelerating growth.

While the opposition parties have called it a disaster, a monumental blunder

and a measure that inflicted enormous pain without gain, the ruling party

mandarins have termed it as the most innovative move to curb the black money,

advancing the process of formalisation of the economy and ending anonymity.

In this din and buzzle, where positions are taken on party lines, the common

man is left confused.

2. Forex reserves can be managed better; by: Himadri

Bhattacharya



India’s foreign exchange reserves are now a touch below $400 billion. If one

adds the RBI’s forward buying commitments of US dollars, the reserves are

about $410 billion. In more senses than one, this is a landmark attainment that

encapsulates the validity and success of the economic reform process that

began in the wake of the BoP crisis in 1990-91 when the reserves had fallen to

less than $1 billion. It also portrays the good quality of overall macroeconomic

management, especially of the external sector, in the post-reform years. India

has now overtaken Brazil as the top holder of foreign exchange reserves among

countries with current account deficit.

3. COMPETITION COMMISSION VS TELECOM REGULATORY

AUTHORITY - Fierce Contest Over Competition; M M Sharma



The ongoing turf war between the Competition Commission of India (CCI) and

the Telecom Regulatory Authority of India (Trai), triggered by CCI chairman

Devender Sikri writing a letter to Trai chairman R S Sharma on July 21, shows no

sign of abating. Trai is now claiming to possess more experience in handling

competition issues -e.g., abuse of dominance and predatory pricing -within the

telecom sector. The tussle between new entrant Reliance Jio and entrenched

players like Bharti Airtel, Vodafone and Idea to grab the maximum share of the

huge telecom market is to be seen in the light of this turf war.

6 September 2017

22

Click excel icon

for detailed

valuation guide

Rs

Valuation snapshot

P/E (x)

P/B (x)

ROE (%)

FY17 FY18E FY17 FY18E FY17 FY18E FY19E

28.3

21.9

21.5

31.1

40.7

18.4

37.4

34.9

17.5

22.2

21.0

19.3

24.0

27.7

17.3

42.5

24.7

23.0

22.3

99.7

20.8

25.7

20.0

20.7

27.2

20.6

30.4

29.9

10.2

19.3

24.1

14.5

NM

11.2

8.6

8.3

7.5

24.6

19.0

15.2

17.9

37.5

29.0

22.3

20.5

14.6

53.1

33.4

14.4

28.0

16.3

5.3

5.4

5.0

6.4

7.7

2.9

16.2

8.3

3.3

3.5

7.8

3.1

2.7

6.5

2.3

12.1

4.9

2.2

2.7

2.6

2.2

5.2

2.2

1.3

5.1

0.7

4.8

4.7

1.1

3.8

3.4

0.9

0.6

0.7

0.5

0.9

0.3

0.8

1.3

0.4

0.9

10.2

5.2

3.2

4.2

2.2

19.4

7.0

4.3

4.6

3.2

4.6

4.8

4.6

5.6

6.9

2.6

12.1

6.9

2.8

3.1

6.8

2.8

2.5

5.7

2.0

10.0

4.3

2.1

2.2

2.6

1.8

4.5

2.0

1.3

4.4

0.7

4.2

3.4

1.1

3.3

3.0

0.9

0.7

0.7

0.5

0.9

0.3

0.8

1.2

0.5

0.8

8.3

4.2

2.8

3.5

2.0

15.9

6.3

3.8

4.0

2.8

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

24

4

11

19

-1

17

12

4

13

32

-4

23

13

40

0

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

798

986

113

118

2,950 3,281

1,134 1,353

22,276 21,994

1,735 2,029

31,884 35,854

1,023 1,059

650

732

204

269

3,971 3,818

1,325 1,625

236

-

7,816 8,819

387

542

613

612

28.2

37.9

28.5

5.2

7.0

24.9

137.2 163.6 22.3

36.5

50.5

43.3

547.2 705.7 47.1

94.2 126.8 18.6

852.9 1,092.8 52.0

29.3

37.9

43.5

37.1

45.8

32.6

9.2

11.0

25.2

189.3 199.1 23.5

68.5

82.4

24.4

9.9

11.8

44.1

281.7 374.5 31.4

22.4

59.8

19.6

14.4

23.7

52.2

28.6

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

32.7

26.6

34.2

23.2

30.9

19.5

24.6

35.1

NM

36.8

45.2

13.4

24.4

29.9

23.1

NM

18.0

36.2

9.8

NM

23.1

932.2

17.0

100.9

53.2

43.9

30.1

24.9

18.6

64.9

37.7

18.0

39.1

17.7

Neutral

Neutral

Buy

Buy

Buy

Buy

Neutral

Buy

Neutral

Buy

Under Review

Buy

Buy

503

186

173

112

1,757

298

57

1,684

79

987

538

29

1,777

545

192

201

139

2,000

366

62

1,800

91

1,153

-

34

2,133

8

3

16

24

14

23

8

7

15

17

17

20

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

138

144

338

55

286

128

144

277

137

198

149

360

49

382

150

184

341

140

43

3

7

-11

34

18

28

23

2

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

1,788

922

741

1,146

550

528

1,767

1,240

205

678

1,800

820

925

1,400

630

450

1,900

1,350

200

708

1

-11

25

22

15

-15

8

9

-2

4

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

6 September 2017

23

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)

103

439

466

123

649

164

2,073

1,070

TP

% Upside

EPS (INR)

(INR) Downside FY17 FY18E FY19E

-

8.6

10.8

12.5

459

5

7.1

13.9

17.8

550

18

29.5 38.2

44.2

117

-5

25.7 27.2

30.2

800

23

29.1 34.5

39.3

134

-18

31.4 35.0

40.4

2,800

35

84.3 121.7 164.1

1,330

24

55.6 80.0 102.4

P/E (x)

P/B (x)

ROE (%)

FY17 FY18E FY17 FY18E FY17 FY18E FY19E

11.9

9.6

2.6

2.3

24.0 25.9 26.9

62.0 31.6

3.9

3.7

6.5

12.0 14.2

15.8 12.2

2.9

2.4

19.4 21.5 21.2

4.8

4.5

0.8

0.7

17.9 17.0 16.8

22.3 18.8

3.6

3.0

17.4 17.5 17.0

5.2

4.7

1.0

0.8

19.9 19.1 19.1

24.6 17.0

2.7

2.4

11.7 15.0 17.6

19.2 13.4

2.2

1.9

11.7 15.0 16.9

21.0 17.7 3.5

3.1

16.8 17.6 18.1

68.1

27.7

61.0

58.9

46.3

20.8

33.9

72.1

51.6

25.6

26.7

16.4

72.3

42.6

25.8

28.7

20.8

33.8

34.9

57.7

49.9

32.9

71.1

17.4

33.1

30.3

62.0

26.5

NM

401.1

47.0

42.7

37.3

57.3

57.8

52.3

43.2

41.7

49.0

34.0

61.3

33.6

34.7

59.9

25.8

28.7

43.3

43.1

42.0

32.5

44.5

45.1

23.2

24.1

12.8

56.7

36.3

18.5

29.5

17.9

31.1

30.3

40.5

36.2

23.6

40.1

16.5

23.2

25.7

44.4

26.4

36.2

31.4

39.2

44.8

31.9

54.3

49.9

45.4

40.5

41.1

43.0

33.5

52.4

30.5

39.7

8.7

5.7

1.0

9.6

25.2

1.3

6.7

10.2

9.4

4.9

3.1

1.7

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

4.1

3.6

4.6

3.3

5.8

8.2

4.7

3.6

15.2

19.0

23.7

11.4

14.3

11.9

7.1

39.0

7.6

6.5

7.6

4.4

1.0

9.0

18.6

1.2

6.2

9.0

8.4

4.2

3.5

1.5

5.8

6.7

-1.6

3.6

2.9

4.6

3.8

2.8

3.8

2.1

4.4

1.7

1.1

3.6

3.4

4.0

3.1

5.0

6.9

4.3

3.3

13.8

15.6

22.5

9.8

12.2

9.3

7.0

37.7

7.5

6.6

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

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

Sell

Buy

Sell

Neutral

Buy

Neutral

Buy

Neutral

Neutral

Neutral

Buy

Not Rated

Neutral

Neutral

Not Rated

Neutral

Buy

Sell

1,342

192

131

759

217

85

898

413

493

304

1,129

116

1,288

879

16

885

621

522

1,200

210

100

650

250

80

1,170

395

455

295

1,340

-

1,355

900

-

830

800

430

-11

9

-24

-14

15

-6

30

-4

-8

-3

19

5

2

-6

29

-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

Buy

Neutral

Buy

Buy

Neutral

Neutral

Buy

Buy

Buy

Buy

Buy

Buy

Buy

282

308

1,803 1,622

967

1,150

2,756 3,282

1,178 1,079

186

201

1,021 1,277

431

519

722

806

160

185

110

140

18,066 22,360

4,100 4,936

9

-10

19

19

-8

8

25

20

12

16

28

24

20

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

1,205

4,261

1,110

313

1,106

927

5,301

1,203

282

390

1,200

4,660

1,285

315

1,310

995

4,500

1,360

280

395

0

9

16

1

18

7

-15

13

-1

1

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

6 September 2017

24

Company

Reco

Marico

Neutral

Nestle

Neutral

Page Inds

Buy

Parag Milk

Neutral

Pidilite Ind.

Neutral

P&G Hygiene

Neutral

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

314

355

13

7,023 6,160

-12

18,356 19,600

7

250

245

-2

841

810

-4

8,358 8,800

5

134

-

804

875

9

2,563 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

49.9 46.0

59.5 61.0

76.9 62.3

69.3 27.4

50.3 46.6

62.9 55.1

37.9 38.5

92.5 79.9

95.9 74.3

47.4 42.8

23.4

23.9

20.5

18.9

32.7

35.9

35.2

18.2

30.4

14.7

15.4

17.8

71.1

26.2

19.1

17.8

31.0

43.5

28.8

18.9

35.7

22.2

23.2

17.0

42.5

35.5

32.4

14.0

16.6

30.8

81.8

18.6

NM

76.6

10.4

13.2

16.4

57.1

63.6

NM

33.2

22.5

24.7

24.6

22.7

16.6

34.4

28.5

26.5

21.6

25.9

69.6

14.1

15.7

52.2

25.4

15.0

24.0

29.9

28.9

19.6

32.7

28.8

22.9

25.3

14.9

33.5

32.0

24.5

7.4

13.4

25.8

61.8

16.0

NM

65.5

9.5

12.3

14.3

39.4

42.3

NM

29.0

35.3

P/B (x)

ROE (%)

FY17 FY18E FY17 FY18E FY19E

17.4 14.9 36.7 34.9 37.7

22.5 20.9 39.0 35.5 38.1

30.8 24.7 40.0 39.6 43.1

3.2

2.9

6.0

11.0 13.3

13.0 10.6 28.2 25.2 23.5

39.4 32.7 39.3 64.9 62.8

1.9

1.8

5.2

4.9

8.5

9.2

8.4

10.4 11.0 14.7

19.2 13.4 21.3 18.0 20.3

13.0 12.1 27.5 28.2 29.3

5.0

5.1

6.8

4.7

4.1

7.5

3.6

4.1

3.0

1.6

3.8

3.3

10.3

2.2

3.2

3.3

5.3

5.3

3.1

3.2

7.2

4.8

3.9

2.5

18.8

3.7

2.4

1.9

2.6

3.8

17.5

4.4

1.6

4.9

1.8

0.9

2.4

3.8

6.3

3.5

7.8

8.6

4.4

4.4

5.4

3.7

3.8

6.3

3.2

3.7

2.8

1.4

3.0

2.3

12.0

2.0

2.7

3.0

5.0

4.5

2.7

3.3

5.9

4.2

3.6

2.3

14.3

3.5

2.3

1.7

2.2

3.6

13.7

3.9

1.8

4.6

1.5

0.8

2.4

3.5

5.5

3.7

7.2

7.4

23.0

23.4

37.7

27.6

12.3

23.0

10.2

23.5

9.7

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

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

9.4

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

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

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

24.5

505

1,805

1,198

744

334

510

560

724

2,209

152

603

129

2,443

422

704

992

3,999

609

928

493

465

1,223

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

34

14

-1

9

-7

-6

13

45

28

56

2

2

28

13

21

32

40

4

10

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

167

4,354

1,349

221

117

282

212

-

1,214

272

-

-

27

-10

23

9.8

11.2

102.5 129.9

38.0 42.1

6.8

9.0

8.4

15.9

16.9 21.0

13.3

163.2

48.6

12.4

23.9

25.9

81

379

88

875

270

98

177

367

1,306

26

826

520

106

450

90

928

350

90

225

469

1,628

32

860

630

31

19

2

6

30

-8

27

28

25

25

4

21

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

6 September 2017

25

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

39.9 30.6 5.6

5.1

14.0 16.7 21.3

15.0

15.5

NM

17.3

20.1

13.5

NM

21.0

17.2

21.4

11.1

16.8

40.4

21.3

11.8

10.0

30.0

9.4

16.0

9.9

19.8

16.9

13.0

137.8

70.8

73.4

17.3

14.4

20.1

14.3

9.8

13.7

18.3

15.6

13.6

16.2

31.0

18.6

13.8

17.6

15.3

16.7

36.6

25.0

NM

24.2

38.6

17.0

11.0

13.7

NM

11.7

21.3

10.8

NM

13.3

10.0

15.0

15.7

14.3

22.1

16.8

14.1

11.8

26.4

14.7

11.1

9.9

16.1

14.1

13.1

93.1

60.2

61.2

15.0

13.9

17.5

14.5

11.0

12.7

15.9

15.1

12.2

14.1

25.9

18.5

12.6

16.4

15.3

16.5

1.9

4.2

0.4

2.7

1.4

1.9

0.7

1.9

2.0

1.8

3.4

1.7

6.9

2.4

3.6

2.0

6.3

2.4

0.8

0.9

4.2

1.7

1.7

11.3

13.4

12.6

2.8

3.6

4.9

3.0

1.5

4.8

3.0

2.1

1.8

2.5

9.7

5.5

2.3

2.8

2.4

3.8

1.5

4.5

0.4

2.3

1.4

1.8

0.8

1.8

1.8

1.7

3.0

1.6

5.5

2.1

3.1

1.8

5.3

2.1

0.8

0.9

3.5

1.5

1.6

10.4

12.2

11.5

2.5

3.2

4.2

2.7

1.4

3.7

2.9

2.2

1.7

2.4

7.8

5.9

2.1

2.7

2.2

3.8

2.4

3.8

1.5

10.2

2.7

6.1

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

31.5

-4.9

21.3

6.5

15.2

-9.1

14.2

18.6

11.2

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

15.4

38.0

0.6

20.8

7.7

15.6

-5.3

20.4

16.2

14.0

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

44.2

Buy

Neutral

Buy

Buy

Neutral

Buy

Sell

Buy

Neutral

242

304

140

256

74

135

62

317

651

309

301

194

297

63

180

30

361

591

28

-1

38

16

-15

33

-52

14

-9

16.2

19.7

-20.9

14.8

3.7

10.0

-6.2

15.1

37.9

22.0

22.2

-15.8

21.9

3.5

12.4

-7.7

23.9

65.1

26.3

29.3

2.0

25.7

4.2

12.1

-4.2

37.4

64.3

Neutral

Sell

Sell

Neutral

Buy

Buy

Neutral

Sell

Buy

Buy

Buy

Neutral

539

379

823

188

482

432

1,318

138

308

163

226

1,633

515

346

691

171

510

458

1,152

113

316

195

274

1,499

-4

-9

-16

-9

6

6

-13

-18

2

20

21

-8

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

1,379

640

850

565

-38

-12

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

859

274

901

117

762

455

609

515

609

1,745

2,478

427

297

795

600

950

250

1,050

140

880

450

610

540

750

1,992

2,350

490

270

950

13

11

-9

17

20

16

-1

0

5

23

14

-5

15

-9

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

407

372

85

660

490

480

110

775

21

29

30

17

11.1

14.9

-1.1

27.2

4.3

17.9

-10.9

8.7

6.6

20.4

-11.3

26.1

93.7

2.4

20.8

4.4

NM

1.2

75.8 11.8

213.8 2.7

13.9

6.4

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

254

275

8

14.9

18.3

19.1

6 September 2017

26