24 April 2018

Market snapshot

Equities - India

Close

Chg .%

Sensex

34,451

0.1

Nifty-50

10,585

0.2

Nifty-M 100

20,006

0.5

Equities-Global

Close

Chg .%

S&P 500

2,670

0.0

Nasdaq

7,129

-0.2

FTSE 100

7,399

0.4

DAX

12,572

0.3

Hang Seng

12,000

-0.4

Nikkei 225

22,088

-0.3

Commodities

Close

Chg .%

Brent (US$/Bbl)

75

1.3

Gold ($/OZ)

1,325

-0.8

Cu (US$/MT)

6,899

-0.8

Almn (US$/MT)

2,297

-7.5

Currency

Close

Chg .%

USD/INR

66.5

0.6

USD/EUR

1.2

-0.6

USD/JPY

108.7

1.0

YIELD (%)

Close

1MChg

10 Yrs G-Sec

7.7

0.02

10 Yrs AAA Corp

8.4

0.03

Flows (USD b)

23-Apr

MTD

FIIs

0.0

-0.7

DIIs

0.1

1.0

Volumes (INRb)

23-Apr

MTD*

Cash

358

330

F&O

7,377

7,228

Note: YTD is calendar year, *Avg

YTD.%

1.2

0.5

-5.3

YTD.%

-0.1

3.3

-3.8

-2.7

2.5

-3.0

YTD.%

11.6

1.7

-4.3

1.8

YTD.%

4.1

1.7

-3.5

YTDchg

0.4

0.5

YTD

1.5

4.8

YTD*

376

8,034

Today’s top research idea

Infosys:

Stability (FY19)



Momentum



Accelerate (FY21)

Granular strategy articulated around Digital, Core, Sales and Talent



On its Analyst Day, INFO's new CEO Mr Salil Parekh shed more light on the four

pillars of its strategic plan: [1] scaling agile digital, [2] energizing the core, [3]

re-skilling people and [4] expanding localization of talent. INFO's well-

articulated strategy in digital, sales,talent re-skilling and localization, coupled

with the USD2.79b base of digital revenues, provides a good base to kick-off its

next innings.



With previous distractions behind, INFO's focus is back on execution. That said,

on the back of developments of past two years, the company cited that FY19

will be a year ofstabilization, FY20 a year of momentum building, and FY21 a

year of acceleration. It, however, refrained from divulging any further details

about the implications of this roadmap on its absolute/relative financial

performance.

Research covered

Cos/Sector

Infosys

KNR Construction (CO)

Banking - NBFC

Pharma Monthly

Metals Weekly

Results Flash

Results Expectation

Key Highlights

Stability (FY19)



Momentum



Accelerate (FY21)

Growth concerns addressed

MSME Finance sector in a sweet spot

Higher volumes continue supporting IPM growth

Aluminum and alumina prices continue increasing

Bharti Infratel | Cholamandalam Fin. | LIC Housing | Delta Corp

Bharti Airtel | Oberoi Realty | Persistent Sys | Zensar Tech.

Piping hot news

Mandatory local electric vehicles content likely to be hiked to 70% in 3 years



The government plans to double the mandatory local content in electric

vehicles to 70% in three years and impose heavy duties on imports to ensure

that domestic manufacturing gets a big boost from the Rs 8,730-crore…

Chart of the Day:

Infosys:

Stability (FY19)



Momentum



Accelerate (FY21)

Productivity improvements (including utilization) drove better revenue per employee

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

Banks told to shell out tax on

‘free services’ to customers

The tax department has asked

country’s top lenders including

State Bank of India, HDFC Bank,

ICICI Bank, Axis Bank and Kotak

Mahindra Bank to pay tax that

could run into thousands of

crores, on ‘free services’ provided

to customers maintaining a

minimum account balance…

2

ICICI Securities IPO under Sebi scanner

The stock market regulator Securities and Exchange Board of India (Sebi)

has sought details of a large investment made by ICICI Prudential Mutual

Fund in the flop IPO of affiliate ICICI Securities Ltd, two people aware of

the matter said. ICICI Securities had to cut its IPO size to Rs3,520 crore

from the original target of Rs4,017 crore because of poor investor interest.

Of this, a large chunk was bought by ICICI MF…

3

Tax tangle: March GST mop-up

hits Rs 96,000 crore

The goods and services tax (GST)

collections for March exceeded Rs

96,000 crore by April 23, the

largest mop-up for any month

since the comprehensive indirect

tax’s launch in July last year, an

official source said.…

4

Tata Chemicals looks at Bolivia

to feed growing appetite for

lithium

Tata Chemicals Ltd is looking at

business opportunities related to

the exploration and import of

lithium from Bolivia to India and

possibly to other countries where

the company operates...

5

India highest recipient of

remittances at $69 bn

India retained the top position as

recipient of remittances with its

diaspora sending about USD 69

billion back home last year, the

World Bank said today.

Remittances to India picked up

sharply by 9.9 per cent, reversing

the previous year’s dip, but were

still short of USD 70.4 billion

received in 2014…

6

Essar Steel sale: Fresh hurdles

for Numetal, ArcelorMittal in

NCLT order

ArcelorMittal and Numetal

Mauritius must clear debts in

defaulting companies where

they hold stakes before bidding

for Essar Steel Ltd, and merely

selling stakes in those companies

won’t make them eligible, details

from the bankruptcy court’s

Thursday order show…

7

Salil Parekh sets 3-year target

to stabilize, turn around

Infosys

In his first formal address to

investors as CEO of Infosys Ltd,

Salil S. Parekh pledged to

stabilize and turn around the

fortunes of India’s second largest

information technology services

company in three years…

24 April 2018

2

23 April 2018

Update | Sector: Technology

Infosys

Buy

BSE SENSEX

34,451

S&P CNX

10,585

CMP: INR1,183

TP: INR1,330(+13%)

Stability (FY19)



Momentum



Accelerate (FY21)

Granular strategy articulated around Digital, Core, Sales and Talent

Stock Info

Bloomberg

Equity Shares (m)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

M.Cap. (INR b)

M.Cap. (USD b)

Avg Val, INRm

Free float (%)

INFO IN

2,184

1220 / 862

-4/22/11

2,570.8

38.9

5446.0

87.1



On its Analyst Day, INFO’s new CEO Mr Salil Parekh shed more light on the four

pillars of its strategic plan: [1] scaling agile digital, [2] energizing the core, [3] re-

skilling people and [4] expanding localization of talent.

INFO’s well-articulated strategy in digital, sales, talent re-skilling and localization,

coupled with the USD2.79b base of digital revenues, provides a good base to kick-off

its next innings. With previous distractions behind, INFO’s focus is back on execution.

The company cited that FY19 will be a year of stabilization, FY20 a year of

momentum building, and FY21 a year of acceleration. It, however, refrained from

divulging any further details about the implications of this strategy on its

absolute/relative financial performance.

With the benefits from productivity levers such as automation becoming visible,

INFO indicated that pricing is not as big a concern and that the margin guidance cut is

a function of ~USD100m worth of investments made to build capabilities imperative

for the execution of its strategy.

INFO’s USD2.79b revenue base puts it in a strong position in the USD160b+ market,

which is growing at more than 15%. It cited that knowledge of clients’ core

technology environment is a huge advantage, which, combined with energizing the

core, means that firms such as INFO are best placed to drive Digital story.

Its investments in sales & marketing will focus on six imperatives: [1] branding, [2]

injecting digital specialists into accounts, [3] scaling large accounts, [4] shaping large

deals, [5] acquiring new accounts and [6] enabling sales via continuous anytime-

anywhere learning.

We maintain our Buy rating on INFO with a price target of INR1,330 (16x FY20E

earnings).





Financials Snapshot (INR b)

2018 2019E 2020E

Y/E Mar

705.2 779.6 861.4

Net Sales

190.1 202.6 220.7

EBITDA

161.0 151.0 162.7

PAT

64.8

70.1

77.7

EPS (INR)

3.1

8.3

10.8

Gr. (%)

286.5 319.3 303.9

BV/Sh (INR)

24.1

22.9

24.9

RoE (%)

24.1

22.9

24.9

RoCE (%)

17.4

16.0

14.5

P/E (x)

3.9

3.5

3.7

P/BV (x)

Shareholding pattern (%)

As On

Mar-18 Dec-17 Mar-17

Promoter

12.9

12.9

12.8

DII

21.6

21.7

20.3

FII

35.7

35.4

38.8

Others

29.8

30.0

28.1

FII Includes depository receipts

Stock Performance (1-year)

Infosys

Sensex - Rebased

1,240

1,120

1,000

880

760









INFO divulged further details about the four pillars of its execution, articulating the

focus areas of its strategy under the new leadership. Its five-dimensional digital

service architecture comprises: [1] Insights, [2] Innovate, [3] Accelerate, [4] Assure

and [5] Experience.



INSIGHT

– Data is one of the biggest opportunities in Digital. INFO is driving

this through both IP-led differentiation (Genome, Hawkeye) and bundled

solutions built with new-age partners.



ACCELERATE

– Transitioning Enterprise workloads. Digital workloads were

always on the cloud.



INNOVATE

- Value of Digital is in interface of Digital and Physical objects. INFO

is building platforms to drive that. It is co-creating IPs with clients leveraging its

NIA framework.



ASSURE

– New-age assurance capabilities, cyber defense centers, security

architecture capabilities are some of the aspects of Assure.

the



It showcased examples of some of the work done with its large accounts, such

as Telstra and Adecco, where one or many of these five tenets were put to

practice.

Articulates the granular execution focus of the strategy

24 April 2018

3

C

orner

O

ffice

Interaction with the CEO

23 April 2018

Growth concerns addressed

Financing plans in place for new projects

We met Mr. K. Jalandhar Reddy, Promoter and Executive Director of KNR Construction (KNRC)

to get an update on its business and understand its strategy. Our key takeaways:

KNR Construction

Recent order wins address medium-term revenue visibility concerns

KNRC has been able to ramp up order inflows by winning four HAM projects with an

EPC business opportunity of INR31b, leading to order backlog of INR59b and providing

revenue visibility of 3.3x its TTM revenue. Incrementally, KNRC expects order inflow of

INR30b to materialize in 1HFY19 (two projects in Telanga and one KSHIP project), which

will further boost its revenue visibility. With healthy order inflows and potentially

strong order inflow piepline, concerns on growth have been addressed by the company.

Mr. K. Jalandhar Reddy

Executive Director

Mr. K. Jalandhar Reddy is

the Promoter and Executive

Director of KNR

Constructions Limited. He

has over 18 years of

experience in the Highway

and infrastructure sector.

He started his career with

the organization as a project

Manager and was elevated

to Executive Director on

April 1, 1997.

Focus shifts to financial closure and timely execution of new HAM projects

With revenue growth visibility concerns being addressed by the company, focus has

now shifted to successfully executing projects after achieving financial closure for the

same. Currently, all the four HAM projects have 80% land available on 3D basis

(publication of notification to acquire land in gazette) and expectation is to have 80%

land availability on 3H stage (compensation being paid) by September 2018.

Financing plans in place to support equity requirement for new HAM projects

KNRC has chalked out multiple options to fund the equity requirement for new projects.

He heads the tendering and

The plan is to fund projects through any one of the following options:

bidding activities and is in

1. Rope in equity investor at the SPV level to help fund the HAM project equity

charge of most of the

requirement. KNR intends to have a structure of 51:49 at the SPV level. Total equity

projects in Southern India

requirement for all the four HAM projects is INR3.9b, of which it will support 51%

funding while the equity partner will contribute 49%.

2. Raise funds by raising debt at the parent level and infusing equity at the SPV level.

3. Securitize the Kerala BOT project cash flows for INR1b, which will help meet the equity requirement for the

upcoming HAM projects.

BOT projects on self-sustaining mode

Both of KNRC’s BOT projects have received 100% CoD. Toll collection stands at INR1.6m per day for the Walayar

project (INR1.4m per day) and at INR2m per day for the Muzzafarpur project (INR1.4m per day). KNRC is in the

process of refinancing the Muzaffarpur project, which will help reduce the interest burden for the project.

Refinancing, pickup in traffic growth, and reduction of debt by infusing equity has led the projects to be self-

sustaining. KNRC also intends to securitize the Kerala BoT project cash flows for INR1b, which will help meet the

equity requirement for the upcoming HAM projects.

Earnings growth to pick up in FY20

As the order inflow has been back-ended in FY18, revenue growth is expected to remain muted in 1HFY19, as

appointed date of the newly-won HAM projects will be achieved by end of 1HFY19. Traction should pick up post this,

with four new HAM projects contributing. Even the ongoing key projects are nearing 80% completion, which will

slow down revenue contribution from existing projects. The management expects a muted FY19 (INR20b revenue

guidance for FY19) and expects growth to pick up from FY20, as HAM project execution picks up. We estimate

revenue growth of 11%/39% in FY19/20 and earnings growth of -17%/30% in FY19/20.

24 April 2018

4

Valuation and view

We like KNRC for its robust execution track record, driven by backward integration, strong balance sheet with net

debt-equity of 0.1x, and consistent operating margins of 14-15%. We maintain our

Buy

rating. We value the

company on SOTP basis: INR370/share for standalone EPC business (18x FY20E EPS of INR18.2) and INR45/share for

investments in BOT projects and land parcels (1x FY20E BV).

Revenue growth expectation of 22% CAGR over

FY17-20E

Revenue (INR m)

YoY Growth

70.7

39.0

20.6

(4.6)

(8.5)

5.0

16.8

3.0

10.9

Operating margins to stabilize at 15-16% going ahead

EBITDA (INR m)

18.4

16.8

17.2

EBITDA Margin (%)

20.2

14.9

16.1

15.4

15.1

14.4

7,562 6,921 8,348 8,761 9,025 15,411 18,006 19,967 27,755

1,394 1,164 1,258 1,261 1,554 2,296 3,633 3,215 4,274

Net profit to register 15% CAGR over FY17-20E

PAT (INR m)

17.9

8.3

10.9

13.2

9.8

9.2

PAT Margin

Return ratios to remain healthy

RoE (%)

32.0

24.0

16.0

8.0

0.0

RoCE (%)

7.0

528

7.5

521

7.3

610

730

1,611 1,681 2,374 1,963 2,556

Source: Company, MOSL

Source: Company, MOSL

Details of the recently won HAM projects

Details of HAM projects

Trichiraopalli Kallagam

Meensurutti- Chidambaram

Ramsanpalle-Mangloor

Chittor-Mallacaram

Total

Equity

954

453

1,005

1,353

3,764

Grant

4,323

2,043

5,228

7,397

18,991

Debt

3,815

1,810

4,020

5,410

15,055

Total Cost

9,092

4,306

10,253

14,159

37,810

EPC value

7,464

3,518

8,438

11,607

31,027

Current order book and its execution timelines

Project name

Hubli Hospet

Salem Flyover

KP Sagar Irrigation project

Thiruvananthapuram by-pass

Pollachi Coimbatore

Arunachal Pradesh Order

Order backlog

as on 3QFY18

6.3

3.0

5.6

4.1

2.8

2.4

Comments

15% completed, incremental 45% to be completed in FY19 and balance by FY20

INR1.3b completed and balance to be completed by FY19

INR2.5b done and balance to be completed by March 2019

85% of the project is complete and balance is expected to be completed by March 2019

Of the 26km stretch, 15km work completed (~55% completed), 5km stuck due to land

acquisition. Pending work is expected to be completed by August 2018



of the 52km stretch, 22km has been completed and the balance is expected to be

completed by FY20











24 April 2018

5

Sector Update | 24 April 2018

Financials - NBFC

MSME Finance sector in a sweet spot

Fastest growing segment within non-retail finance; NBFCs gaining share

We studied the ‘MSME Pulse’ report authored by SIDBI and Trans Union-CIBIL. Our key

takeaways:

Growth in micro-credit higher than other segments

Over the past two years (CY15-17), micro-credit (<INR10m) grew at a CAGR of 14%

compared to a CAGR of 11% for SME credit (INR10m-250m) and 8-9% for mid-and-

large-corporate finance. The faster growth in micro-credit was driven by a sharp

pickup in growth in CY17 – while large corporate credit remained muted, micro-

credit grew 21%.

Interestingly, within micro-credit, the “very small” credit

(<INR1m) grew 32% in CY17. This is rather counter-intuitive – while it was largely

expected that this segment would be most impacted in the aftermath of

demonetization, it actually witnessed the highest growth.

Share of LAP/MSME financing in

total loans among NBFCs under

coverage (%)

MASFIN

SCUF

CAFL

CIFC

IHFL

Repco

DHFL

PNBHF

LICHF

86.5

55.0

40.0

25.1

20.0

18.9

17.8

16.0

13.2

Asset quality stable in MSME finance; mid-large corporate most impacted

Interestingly, not only is the GNPL ratio lowest in the micro-credit segment, but

also the increase in the GNPL ratio over CY15-17 is the lowest.

For the micro and

SME credit segment, GNPL ratio increased by 80/140bp over the past two years. For

the mid and large corporate segment, it increased by 280/900bp. The latter was

driven by RBI’s asset quality review (AQR) in 4QFY16. Also, for the MSME finance

segment as a whole, the GNPL ratio for private banks has remained stable at 3.7%,

while that of state-owned banks and NBFCs has increased by 200bp. Also, among all

states, Rajasthan stands out in terms of asset quality (GNPL ratio of 3.5% v/s

average of ~10%).

State-owned banks dominant, but losing share

State-owned banks are the largest players in the MSME finance segment, with a

market share of 55% as of CY17. However, over the past two years, they have ceded

share to private sector banks and NBFCs. The share of private sector banks now

stands at 29% while that of NBFCs is at 10%. Also,

state-owned banks

overwhelmingly dominate the ‘new to credit’ borrower, especially in the sub-

INR1m ticket range, with a market share of 79%. In this segment, NBFCs have a

share of only 5% – we believe there is huge scope for NBFCs to gain market share.

This bodes well for small-ticket MSME-focused players like SCUF and MASFIN.

View

We remain constructive on the MSME finance segment, given the large untapped

opportunity and runway for growth. The fact that sub-INR1m ticket credit grew 32%

in CY17 is testimony to the fact that demand in this segment exists despite the

impact of demonetization. We prefer players that have been in this business for

many years and have seen multiple cycles. We have BUY on SCUF and MASFIN.

24 April 2018

6

Sector Update | 24 April 2018

Healthcare

Performance of top

companies: March 2018)

Company

IPM

Sun Pharma

Abbott India

Cipla

Zydus Cadila

Mankind

Alkem

Lupin

Torrent Pharma

Pfizer

Glenmark Pharma

Sanofi

Dr Reddy Labs

GSK Pharma

Alembic Pharma

Ipca Labs

Natco

Ajanta Pharma

Merck

Biocon

MAT

gr

(%)

5.7

6.2

8.3

4.2

6.4

7.4

5.2

10.3

4.9

(2.4)

8.6

9.0

6.1

7.5

(1.0)

(5.9)

(0.2)

7.7

4.9

12.2

Mar-

18

(%)

9.5

9.6

13.7

11.3

5.1

11.2

14.8

16.9

9.9

2.7

14.1

9.1

9.9

7.8

7.1

3.2

(14.6)

7.3

9.5

13.1











Higher volumes continue supporting IPM growth



Lupin, Alkem and Mankind witness highest growth for the quarter

Indian pharmaceutical market's (IPM) secondary sales continued growing at a

healthy rate in March, led by strong volume growth. Price growth, however, has

remained a drag for 8-9 months now (prices declined 1.1% YoY in 4QFY18, but

showed a marginal improvement from 3QFY18). IPM grew by 9.5% YoY in March

2018 and 5.7% YoY in 4QFY18.

Bottoming out in 2QFY18 (0.1% growth), volumes grew strongly by 7.3% in

4QFY18 (had grown by 5.9% YoY in 3QFY18). Growth in new products has

remained stable over the last 7-8 quarters (+2.6% YoY in 4QFY18).

Moving annual total (MAT) growth stood at 5.7% in March.

Lupin continued to lead among the top 10 companies in March 2018, with

strong growth of 16.9%. For 4QFY18 too, Lupin reported the highest growth

(+16.2%), followed by Alkem (+13.2%), Mankind (+12.9%) and Biocon (+12.2%).

Growth of most companies has improved over the past 12-18 months, after

taking a hit from weakness in the domestic market post demonetization and GST

implementation.

Natco Pharma’s (-14.6%) secondary sales declined in March. The company’s

secondary sales have been declining over the past year (3QFY18 was an

exception with 24.5% YoY growth).

Respiratory (7.7% of IPM) maintained its strong growth trajectory for the month

(+20.1% YoY). For the quarter too, Respiratory reported the highest growth

(+20.3%), followed by Hormones (+15.7%; 1.8% of IPM) and Anti-Infectives

(+10.6%; 13.8% of IPM).

Although all the therapies reported growth in March-18, more than 55% of

them underperformed the IPM.

In value terms, secondary sales grew 8.7% YoY for DPCO-listed products and

9.8% YoY for non-DPCO products in March 2018. Volumes grew 10.8% YoY for

DPCO-listed products and 9.8% YoY for non-DPCO products in March.

FDC-banned drugs (~2% of IPM) grew 17.3% in March, while non-banned drugs

grew by 9.4% YoY. Secondary sales for Indian companies increased 9.1% YoY,

while those of MNC companies grew by 11.2% YoY in March.

Price Growth (%)

New Product Growth (%)

7.1

3

1.8 2

2.7

0.7

0.1

-2.1

2QFY18

5.9

2.7

-1.5

3QFY18

2.6

-1.1

4QFY18

Source: AIOCD, MOSL

Total Growth (%)

8.8

7.3

Respiratory and Hormones lead among therapies



DPCO v/s non-DPCO market (March-18)



FDC ban impact (March-18)



Volumes continue to grow, but price decline restricts growth

Volume Growth (%)

9.9

8.1

3.7

3.3

1.1

3QFY17

4QFY17

6.8

4.7

3.8

1.4

1QFY18

24 April 2018

7

Metals Weekly

Aluminum and alumina prices continue increasing



23 April 2018

Update









Indian steel: Long product (TMT Mumbai) prices were down ~2% WoW. Sponge iron prices were down ~3%

WoW, while domestic scrap prices declined ~3% WoW. NMDC cut domestic iron ore prices by INR100/t. Pellet

prices were marginally higher. Domestic HRC prices were unchanged, while import and export offers were

marginally lower.

Raw materials: Iron ore prices (China cfr) were up ~2% WoW. Thermal coal prices were up ~1% WoW. Coking

coal prices were down ~3% WoW. China’s pellet import prices were marginally higher WoW. Chinese graphite

electrode prices were down ~2% WoW.

Europe: HRC prices were down ~2% WoW. CIS HRC export prices were unchanged. Rotterdam scrap prices

were down ~1% WoW.

China: Chinese local HRC and rebar prices were marginally higher WoW. Export rebar prices were up ~2%

WoW, while HRC prices also increased marginally.

Base metals: Aluminum (cash LME) prices were up ~6% WoW due to US sanctions against Rusal. Alumina

prices increased ~14% WoW (to ~USD660/t). Copper (cash LME) prices were up ~2% WoW. Prices of zinc and

lead were up ~4% and ~2% WoW, respectively. Brent crude prices were also up ~2% WoW.

24 April 2018

8

RESULTS

FLASH

Bharti Infratel

TP: INR380

Neutral

23 April 2018

Results Flash | Sector: Telecom

BSE SENSEX

34,451

S&P CNX

10,585

CMP: INR328

Conference Call Details

Date:

24 April 2018

Time:

02:30pm IST

Dial-in details:

+91-11-4444 9999

th

Lower tenancy pulls down rental revenue; consol. EBITDA flat

QoQ

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Financials & Valuations (INR b)

2018 2019E

Y/E Mar

Net Sales

144.9 149.0

EBITDA

63.8

61.7

Adj NP

25.2

28.0

Adj EPS (INR)

13.6

15.1

EPS Gr. (%)

-8.1

11.0

BV/Sh. (INR)

91.7

89.4

RoE (%)

15.6

16.7

RoCE (%)

13.6

13.1

P/E (x)

24.1

22.3

P/BV (x)

3.6

3.8

EV/EBITDA (x)

8.8

9.5

2020E

160.8

66.7

30.7

16.6

9.7

88.6

18.7

14.9

20.3

3.8

8.9

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Pro forma consol. revenue was flat QoQ (+4% YoY) at INR36.6b (2% beat).

Pro forma consol. rental revenue was down 3% QoQ (flat YoY) at INR21.9b

(1% miss).

Energy revenue grew 6% QoQ (+10% YoY) to INR14.8b (6% beat).

Consol. co-locations were down 4% QoQ (-2% YoY) at 2,05,596 (2% miss).

Average sharing factor stood at 2.30 (-4% QoQ).

Gross co-location adds stood at 1,933 v/s 1,950 in 3QFY18. However, led by

9,813 exits, net tenancy deletions stood at 7,880 (est. of 3,720) v/s 6,612 in

3QFY18. This is due to consolidation in the telecom sector, which is expected

to continue over the coming few quarters.

Rental per tenant (per month) was flat QoQ at INR34,770.

Total towers stood at 91,451; flat QoQ.

Pro forma consol. EBITDA of INR15.9b was flat QoQ (+1% YoY, 1% beat).

EBITDA margin at 43.5% was down 25bp QoQ (-120bp YoY, 15bp miss).

Rental EBITDA declined 5% QoQ (flat YoY) to INR14.3b, while the margin

shrunk 100bp QoQ to 65.4% (in-line).

Energy EBITDA surged 68% QoQ (+19% YoY) to INR1.6b. Energy margin

expanded 400bp QoQ (+80bp YoY) to 11.0%, primarily due to an increase in

energy revenue, partly offset by a 1% QoQ rise in power & fuel cost.

Net finance income of INR827m (v/s net finance cost of INR15m in 3QFY18),

coupled with 3% QoQ savings in depreciation, led to a 4% QoQ (+2% YoY)

jump in PAT to INR6b.

Adj. for an exceptional item of INR500m (provision for bad debt on account of

Aircel filing for bankruptcy), PAT stood at INR6.3b (+8% QoQ).

Capex stood at INR5.8b v/s INR6.3b in the previous quarter.

At CMP of INR328, the stock trades at 9.5x/8.9x on FY19/20 EBITDA.

Consolidated

Quarterly Performance

Y/E March

FY17

1Q

2Q

3Q

Revenue from operations

32,106 32,919 34,007

YoY Change (%)

6.9

8.3

9.5

Total Expenditure

18,159 18,421 19,206

EBITDA

13,947 14,498 14,801

Margins (%)

43.4

44.0

43.5

Depreciation

5,648 5,629 5,664

Interest

-1,281 -2,472 -947

Other Income

352

333

357

PBT before EO expense

9,932 11,674 10,441

Extra-Ord expense

0

0

0

PBT

9,932 11,674 10,441

Tax

2,369 3,936 4,237

Rate (%)

23.9

33.7

40.6

Reported PAT

7,563 7,738 6,204

Adj PAT

7,563 7,738 6,204

YoY Change (%)

71.0

30.8

25.3

Margins (%)

23.6

23.5

18.2

(INR m)

FY18

4Q

35,204

10.6

19,481

15,723

44.7

5,684

287

414

10,166

0

10,166

4,200

41.3

5,966

5,966

-17.0

16.9

1Q

35,239

9.8

19,489

15,750

44.7

5,905

-627

474

10,946

0

10,946

4,307

39.3

6,639

6,639

-12.2

18.8

2Q

36,482

10.8

20,336

16,146

44.3

5,941

-109

401

10,715

0

10,715

4,331

40.4

6,384

6,384

-17.5

17.5

3Q

36,553

7.5

20,571

15,982

43.7

5,895

510

495

10,072

0

10,072

4,218

41.9

5,854

5,854

-5.6

16.0

FY17

FY18

4QFY18E Var (%)

35,990

1.8

2.2

20,287 2.0

15,703

1.4

43.6 15bps

6,045

-489

0

10,146

8.7

0

10,146

3.8

3,450

34.0

6,696

-9.5

6,696

-5.2

12.2

18.6

4Q

36,622 1,34,237 1,44,896

4.0

8.9

7.9

20,699 75,268

81,095

15,923 58,969

63,801

43.5

43.9

44.0

5,721 22,626

23,462

129

-4,414

-97

956

1,455

2,326

11,029 42,212

42,762

500

0

500

10,529 42,212

42,262

4,469 14,742

17,325

42.4

34.9

41.0

6,060 27,470

24,937

6,348 27,470

25,232

6.4

22.2

-8.1

17.3

20.5

17.4

24 April 2018

9

RESULTS

FLASH

Cholamandalam Inv & Fin

23 April 2018

Results Flash | Sector: Financials

BSE SENSEX

34,451

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

Avg Val, INRm

Free float (%)

S&P CNX

10,585

CIFC IN

156.3

201 / 3.1

1371 / 913

-6/-1/-5

336.0

46.9

CMP: INR1,663

Growth surprises positively again; Beginning of resolution in LAP NPLs

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Financials & Valuations (INR b)

Y/E March

2018 2019E

NII

30.0

33.7

PPP

17.8

20.0

Adj. PAT

9.3

10.2

EPS (INR)

62.3

65.2

EPS Gr. (%)

35.5

4.7

BV (INR)

329

386

BVPS Gr. (%)

19

17

RoAA (%)

3.0

2.6

RoE (%)

20.6

18.2

Valuations

P/E (x)

25.8

24.7

P/BV (x)

4.9

4.2

Div. Yield (%)

0.4

0.4

2020E

40.9

25.8

13.1

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83.9

28.7

460

19

3.0

19.8

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19.2

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3.5

0.5

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Cholamandalam Investment and Finance’s (CIFC) 4QFY18 PAT grew 32% YoY

to INR2.9b, exceeding our estimate by 6%. While revenue came in 6% ahead

of estimate, this was offset by higher opex (+38% YoY; 14% above estimate).

CIFC had another strong quarter on the vehicle finance front.

It witnessed

strong disbursement growth (55% YoY) and AUM growth (33% YoY). Note

that strong disbursement growth is not off a low base – 4QFY17

disbursement growth was 17% YoY. At the same time, the GNPL ratio in

this segment declined 74bp QoQ to 2.04%. This is lower than even the

number reported on 180dpd basis in FY15.

The home equity segment has stabilized. While disbursement growth on a

YoY basis appears optically high at 48%, it is merely due to the low base

effect. Otherwise, disbursements have largely been around ~INR8b in the

past three quarters.

More importantly, there has been some resolution

under SARFAESI, due to which the GNPL ratio declined 60bp YoY to 5.4%.

While yields were largely steady, a 40bp/70bp QoQ/YoY decline in CoF

drove a similar improvement in margins.

Opex grew 38% YoY, as the company continues investing in branch

expansion (873 v/s 703 branches YoY).

Overall, the company generated 23% RoE for 4QFY18 and 21% for FY18.

Over the past three years, CIFC has delivered 25% disbursement CAGR,

19% AUM CAGR and 31% PAT CAGR. RoE has improved meaningfully from

16% to 21% over the same period.

We expect ~3%/20% RoA/RoE trajectory to continue over the medium term.

Further upside could accrue from potential operating leverage benefits.

The company has scheduled a concall on 24

th

April 2018.

24 April 2018

10

RESULTS

FLASH

LIC Housing Finance

23 April 2018

Results Flash | Sector: Financials

BSE SENSEX

34,451

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

Avg Val, INRm

Free float (%)

S&P CNX

10,585

LICHF IN

505

278 / 4.4

794 / 478

0/-19/-32

1139.0

59.7

CMP: INR550

Spreads at nadir; expect moderate increase in HL growth in

near term

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Financials & Valuations (INR b)

Y/E March

2018 2019E

NII

37.0

40.5

PPP

33.0

34.3

Adj. PAT

19.9

21.1

Adj. EPS (INR)

39.4

41.9

EPS Gr. (%)

3.0

6.3

BV/Sh (INR)

251

285

RoAA (%)

1.4

1.3

RoE (%)

16.8

15.6

Payout (%)

19.7

19.7

Valuations

P/E (x)

14.0

13.1

P/BV (x)

2.2

1.9

Div. Yield (%)

1.2

1.3

2020E

47.1

40.1

25.1

49.8

18.9

324

1.3

16.4

19.7

11.0

1.7

1.5

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LIC Housing Finance (LICHF) reported a marginal 2% YoY increase in PAT to

INR5.4b (5% beat), helped by better-than-expected loan growth and lower

credit costs.

Loan book growth remained in line with past trends at ~15-16% YoY, with

core home loans growing 11% YoY. Loan mix shift toward non-core loans

continued, with the share of LAP and developer loans increasing 180bp QoQ

to 19.2%. Loan book growth in LAP and builder loans continues to be strong

at 31% YoY and 48% YoY, respectively.

Disbursements increased 15% YoY to INR174b, driven by a 17% YoY increase

in home loan disbursements to INR110b.

Calculated spreads declined 45bp YoY, but improved 15bp from 3QFY18

lows to 1.50%. The sequential improvement was driven by a 25bp reduction

in cost of funds. While LICHF will continue getting the re-pricing benefit of

maturing borrowings, spreads have hit the bottom and should moderately

increase over the next 3-4 quarters.

As a result, core NII declined 4% YoY to INR10.0b. Fees and other income

stood at INR874m v/s our estimate of INR568m (helped by strong growth in

the LAP portfolio).

GNPL ratio declined 9bp QoQ to 0.78%, driven by recoveries in corporate

and retail books. GNPL in the corporate loan book increased from INR3.5b in

4QFY17 to INR6.4b now. Consequently, provisions made in the quarter

increased substantially from INR4.2b in 4QFY17 to INR5.9b in 4QFY18. PCR

stands at 45%.

We await further details from the conference call scheduled on 25

th

April.

24 April 2018

11

RESULTS

FLASH

23 April 2018

Results Flash | Sector: Others

Delta Corp

Buy

BSE SENSEX

34,451

S&P CNX

10,585

CMP: INR285

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

TP: INR332

Revenue exceeds estimate; Online gaming segment drags EBIDTA

Conference Call Details

Date:

Apr 24, 2018

Time:

04:00pm IST

Dial-in details:

+91 22 7115 8226



Financials & Valuations (INR b)

INR million

FY18E FY19E

Sales

EBITDA

NP

EPS (Rs)

EPS Growth (%)

BV/Share (Rs)

P/E (x)

P/BV (x)

EV/EBITDA (x)

EV/Sales (x)

RoE (%)

RoCE (%)

5.9

2.5

1.5

5.7

87.7

59.4

49.7

4.8

32.2

13.6

12.2

11.7

7.7

3.2

2.0

7.4

29.8

65.2

38.3

4.4

26.0

10.8

11.9

12.0

DELTA’s revenue rose 59% YoY (est. of 42%) to INR1,716m in 4QFY18.

EBITDA margin expanded 750bp to 39.3% (est. of 45.7%) on a YoY basis, but

shrunk 310bp on a QoQ basis due to a sequential contraction in the online

gaming margin to 14% from 40%. EBIDTA stood at INR675m (est. of

INR702m).

Adj. PAT increased 2.8% YoY to INR437m (est. of INR440m).

FY20E

9.7

4.4

2.8

10.4

39.7

74.0

27.4

3.9

18.9

8.5

14.9

22.3

Valuation and view:

At CMP of INR285, the stock trades at a P/E of 38x FY19E

and 27.4x FY20E. We have a

Buy

rating with a target price of INR332.

Consolidated - Quarterly Earning Model

Y/E March

Net Sales

YoY Change (%)

Total Expenditure

EBITDA

Margins (%)

Depreciation

Interest

Other Income

PBT before EO expense

Extra-Ord expense

PBT

Tax

Rate (%)

Minority Interest & P/L of Asso. Cos.

Reported PAT

Adj PAT

YoY Change (%)

Margins (%)

E: MOSL Estimates

1Q

1,087

34.6

671

415

38.2

91

87

9

246

-46

292

85

29.2

4

202

170

2,539.9

15.6

FY17

2Q

3Q

1,343 1,036

43.8

3.4

776

723

567

313

42.2

30.2

93

89

87

82

11

11

399

152

2

5

397

91

22.9

-16

322

323

494.1

24.1

147

40

27.2

6

101

105

-9.4

10.1

4Q

1,081

5.3

737

344

31.8

87

94

19

182

0

181

64

35.4

3

114

114

-29.3

10.5

1Q

1,286

18.4

833

453

35.2

89

70

37

332

-18

350

127

36.1

1

223

211

24.4

16.4

FY18

2Q

3Q

1,453 1,622

8.2

56.6

798

935

655

687

45.1

42.4

94

94

22

3

86

79

624

669

0

0

624

194

31.1

-2

433

433

33.8

29.8

669

225

33.6

-3

447

447

327.8

27.6

FY17

4Q

1,716

58.7

1,041

675

39.3

94

8

84

656

8

648

191

29.5

-4

453

458

302.3

26.7

4,547

21.2

2,907

1,640

36.1

361

350

49

978

-42

1,020

280

27.4

2

738

707

126.5

15.6

FY18E

5,896

29.7

3,398

2,498

42.4

372

100

280

2,306

-18

2,324

779

33.5

2

1,543

1,531

116.5

26.0

FY18

4QE

1,535

42.0

834

702

45.7

100

5

70

667

0

667

227

34.0

0

440

440

286.4

28.7

Var

%

12

-4

-2

-3

3

4

24 April 2018

12

March 2018 Results Preview | Sector: Telecom

Bharti Airtel

Bloomberg

Equity Shares (m)

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

52-Week Range (INR)

1,6,12 Rel Perf. (%)

BHARTI IN

3997.3

1606 / 25

565 / 333

-4 / -2 / 6

CMP: INR402



TP: INR581 (+45%)

Buy

Financial Snapshot (INR Billion)

Y/E March

2017 2018E 2019E 2020E

Net Sales

EBITDA

Adj. NP

Adj EPS(INR)

Adj EPS Gr.(%)

BV/Sh (INR)

RoE (%)

RoCE (%)

Div. payout (%)

Valuations

P/E (x)

P/BV (x)

EV/EBITDA (x)

Div. Yld (%)

36.1 111.1 219.3

2.4

7.4

0.2

2.4

8.9

0.2

2.3

8.9

0.2

73.0

2.3

7.3

0.2

954.7 841.0 853.1 957.4

353.3 300.4 302.1 356.2

44.4

11.1

-9.5

6.6

5.3

12.7

14.4

3.6

-67.5

2.1

3.8

40.8

7.3

1.8

22.0

5.5



-49.3 200.6

1.1

3.2

65.7

3.2

4.3

21.9

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



168.8 170.5 171.1 175.4

We expect consolidated revenue to decline 1.4% QoQ (and 9%

YoY) to INR200.4b. Given the continued ARPU downtrading on

account of the renewed competition from RJIo, we expect India

wireless revenue to decline 4.4% QoQ (and 21% YoY) to

INR102.8b. Africa revenue is expected to remain flat QoQ at

INR51.5b.

Consolidated EBITDA margin is likely to contract 240bp QoQ to

34.4%, led by 440bp contraction in India wireless margin to

28.2%, partly offset by 20bp expansion in Africa EBITDA margin to

35.4%.

Consolidated net profit is expected to fall 46% QoQ (and 56% YoY)

to INR1.6b.

We expect India wireless ARPU to decline 7% QoQ (and 28% YoY)

to INR114.

Bharti trades at an EV/EBITDA of 8.9x FY19E and 7.3x FY20E.

Maintain Buy.

Key monitorables



Consolidated revenue (expect 1.4% decline QoQ).



India wireless revenue (expected to decline 4.4% QoQ).



Consolidated EBITDA margin (expected at 34.4%; -240bp QoQ).



India wireless EBITDA margin (expected at 28.2%; -440bp QoQ).

Consolidated - Quarterly Earning Model

Y/E March

Gross Revenue

YoY Change (%)

Total Expenditure

EBITDA

Margins (%)

Depreciation

Net Finance cost

Other Income

PBT before EO expense

Extra-Ord expense

PBT

Tax

Rate (%)

Minority Interest

Reported PAT

Adj PAT

YoY Change (%)

Margins (%)

E: MOSL Estimates

1Q

2,55,465

7.9

1,59,985

95,480

37.4

50,402

19,399

2,787

28,466

3,536

24,930

10,089

40.5

222

14,619

16,724

70.7

6.5

FY17

2Q

3Q

4Q

2,46,515 2,33,357 2,19,346

3.4

-3.0

-12.1

1,52,113 1,48,542 1,40,746

94,402 84,815 78,600

38.3

36.3

35.8

49,560 48,350 49,418

19,057 19,356 19,162

1,568

3,487

2,494

27,353 20,596 12,514

66

2,040

6,055

27,287 18,556

6,459

11,136 11,841

1,753

40.8

63.8

27.1

1,544

1,678

972

14,607

5,037

3,734

14,646

5,775

8,146

25.9

-54.6

-45.5

5.9

2.5

3.7

1Q

2,19,581

-14.0

1,41,997

77,584

35.3

48,192

18,274

3,698

14,816

503

14,313

8,136

56.8

2,504

3,673

3,890

-76.7

1.8

FY18

2Q

3Q

2,17,769 2,03,186

-11.7

-12.9

1,38,549 1,28,498

79,220

74,688

36.4

36.8

46,873

48,375

23,266

20,882

3,907

2,950

12,988

8,381

1,786

2,395

11,202

5,986

5,341

379

47.7

6.3

2,431

2,549

3,430

3,058

4,364

5,301

-70.2

-8.2

2.0

2.6

FY17

4QE

2,00,440

-8.6

1,31,522

68,918

34.4

50,341

16,940

2,950

4,587

0

4,587

1,835

40.0

1,116

1,637

1,637

-79.9

0.8

9,54,683

-1.1

6,01,386

3,53,297

37.0

1,97,730

76,974

10,336

88,929

11,697

77,232

34,819

45.1

4,416

37,997

44,421

-9.5

4.7

(INR m)

FY18E

8,40,976

-11.9

5,40,566

3,00,410

35.7

1,93,781

79,362

13,505

40,772

4,684

36,088

15,691

43.5

8,600

11,798

14,445

-67.5

1.7

24 April 2018

13

March 2018 Results Preview | Sector: Real Estate

Oberoi Realty

Bloomberg

Equity Shares (m)

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

52-Week Range (INR)

1,6,12 Rel Perf. (%)

OBER IN

339.5

173 / 3

577 / 339

2 / 16 / 26



CMP: INR509



TP: INR612 (+20%)

Buy

We expect sales volumes to decline 2% YoY to 132,500sf in the

quarter, primarily on account of decreased traction in Mulund

(Eternia and Enigma) and 360 West projects.

In case of annuity portfolio, the primary driver would be increased

occupancy to 55% from 30% YoY in respect of its Commerz II

project.

We estimate sales of INR3,139m, up 8% YoY.

We expect EBITDA margin to expand by 180bp YoY to 54.1%.

We estimate net profit of INR1,073m, up 5% YoY.

We maintain our target price at INR612.

Financial Snapshot (INR Billion)

Y/E MARCH

2017 2018E 2019E 2020E

Sales

EBITDA

Net Profit

EPS (INR)

EPS Gr. (%)

BV/Sh (INR)

RoE (%)

RoCE (%)

Valuations

P/E (x)

P/BV (x)

EV/EBITDA (x)

EV/ Sales (x)

44.2

2.9

30.3

15.5

39.6

2.8

27.6

14.8

9.9

2.2

8.0

4.4

10.6

1.9

8.4

4.6

11.1

5.7

3.8

11.2

-13.1

6.8

6.1

12.3

6.6

4.2

12.5

39.8

21.8

16.9

49.8

36.3

20.0

15.8

46.5

-6.7

19.5

15.3









11.7 300.0

7.2

6.0

25.0

18.2

168.6 178.8 219.7 257.8

Key things to watch for



Launch plan for monetizing Thane land parcel.



Action plan to increase sales momentum for its Mulund Projects

(Eternia and Enigma).

Quarterly Performance

Y/E March

Net Sales

YoY Change (%)

Total Expenditure

EBITDA

Margins (%)

Depreciation

Interest

Other Income

PBT before EO expense

Extra-Ord expense

PBT

Tax

Rate (%)

Minority Interest & P/L of Asso. Cos.

Reported PAT

Adj PAT

YoY Change (%)

Margins (%)

1Q

3,200

52.2

1,534

1,666

52.1

123

14

103

1,631

0

1,631

553

33.9

-10

1,088

1,088

36.8

34.0

FY17

2Q

2,520

32.1

1,262

1,258

49.9

124

13

127

1,248

0

1,248

417

33.4

-6

837

837

12.5

33.2

3Q

2,521

-67.8

1,259

1,262

50.1

125

15

125

1,247

0

1,247

407

32.6

-7

847

847

-60.1

33.6

4Q

2,895

25.8

1,381

1,515

52.3

123

14

125

1,502

0

1,502

492

32.8

-8

1,018

1,018

50.3

35.2

1Q

2,607

-18.5

1,252

1,355

52.0

124

16

96

1,312

0

1,312

405

30.9

-7

914

914

-16.1

35.0

FY18E

2Q

3,035

20.5

1,398

1,638

54.0

128

16

50

1,544

0

1,544

509

33.0

-9

1,043

1,043

24.6

34.4

3Q

3,562

41.3

1,636

1,926

54.1

122

18

42

1,828

0

1,828

635

34.8

-10

1,202

1,202

41.9

33.7

4QE

3,139

8.4

1,443

1,697

54.1

130

30

65

1,602

0

1,602

538

33.6

-9

1,073

1,073

5.4

34.2

(INR Million)

FY17

11,137

-21.3

5,436

5,701

51.2

495

56

479

5,629

0

5,629

1,869

33.2

-31

3,791

3,791

-12.7

34.0

FY18E

12,344

10.8

5,728

6,616

53.6

503

80

252

6,285

0

6,285

2,088

33.2

-35

4,232

4,232

11.6

34.3

24 April 2018

14

March 2018 Results Preview | Sector: Technology

Persistent Systems

Bloomberg

Equity Shares (m)

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

52-Week Range (INR)

1,6,12 Rel Perf. (%)

PSYS IN

80.0

54 / 1

878 / 558

-17 / -3 / 3



CMP: INR677



TP: INR900 (+33%)

Buy

Financial Snapshot (INR b)

y/e march

2017 2018E 2019E 2020E

Sales

EBITDA

Adj. PAT

Adj. EPS (INR)

EPS Gr. (%)

BV/Sh.(INR)

RoE (%)

RoCE (%)

Payout (%)

Valuations

P/E (x)

P/BV (x)

EV/EBITDA (x)

Div. Yield (%)

18.0

2.8

9.6

1.3

16.9

2.7

9.6

1.9

13.5

2.6

7.6

2.1

11.3

2.5

6.5

2.4

28.8

4.7

3.1

37.7

1.4

244.5

17.0

16.7

23.9

30.3

4.5

3.2

40.0

6.1

16.5

16.0

32.5

34.4

5.7

4.0

50.3

25.9

20.0

15.7

27.8

38.3

6.6

4.8

60.2

19.6

23.3

19.3

26.6



254.1 264.8 267.8



We expect 5% QoQ decline in revenue for PSYS in 4QFY18. It

recently guided for a decline to the tune of USD8m in its IP

portfolio. This decline has been greater than the earlier expected

impact of a seasonal decline in IBM IoT revenue.

The decline in IP revenue would also result in a corresponding hit

on profitability, because of which we are baking in a contraction

of 470bp in EBITDA margin to 12.7%.

Our PAT estimate for the quarter is INR704m, down 23.2% QoQ.

The PAT decline is caused by the sharp drop in both revenue and

profitability.

The stock trades at 13.5x FY19E and 11.3x FY20E earnings. Buy.

Key issues to watch for

Performance and outlook for top clients in ISV (ex-IBM).

Commentary on traction with Enterprise customers and potential of

winning large deals in Digital.

Outlook on sustainable profit margins in the near-to-medium term.

Outlook on IP revenue after the hit in 4QFY18.

Quarterly Performance (IFRS)

Y/E March

Revenue (USD m)

QoQ (%)

Revenue (INR m)

QoQ (%)

YoY (%)

GPM (%)

SGA (%)

EBITDA

EBITDA Margin (%)

EBIT Margin (%)

Other income

ETR (%)

PAT

QoQ (%)

YoY (%)

EPS (INR)

Headcount

Util excl. trainees (%)

Attrition (%)

IP rev. proportion (%)

E: MOSL Estimates

1Q

104.8

4.3

7,018

3.6

40.2

34.7

19.6

1,058

15.1

10.2

253

24.3

733

-9.3

9.0

9.2

9,389

75.3

16.7

28.2

FY17

2Q

105.2

0.4

7,040

0.3

29.7

35.5

19.8

1,108

15.7

10.5

243

25.3

735

0.3

2.3

9.2

9,305

74.2

15.9

27.8

3Q

110.0

4.6

7,455

5.9

25.9

36.3

20.4

1,187

15.9

10.7

318

26.7

819

11.4

5.7

10.2

9,229

78.9

15.8

28.4

4Q

109.0

-0.9

7,271

-2.5

7.4

36.1

18.2

1,302

17.9

12.5

143

19.9

842

2.8

4.2

9.1

9,460

77.8

15.7

27.6

1Q

113.0

3.6

7,280

0.1

3.7

34.3

20.0

1,044

14.3

9.0

368

26.3

751

-10.8

2.5

9.4

9,401

77.2

15.5

27.2

FY18E

2Q

118.1

4.5

7,613

4.6

8.1

34.4

19.2

1,158

15.2

10.2

336

25.9

826

10.0

12.4

10.3

9,246

78.6

15.5

26.0

FY17

3Q

122.5

3.8

7,919

4.0

6.2

36.7

19.4

1,375

17.4

12.4

193

22.0

917

10.9

11.9

11.5

9,109

79.9

14.7

26.8

4QE

116.4

-5.0

7,491

-5.4

3.0

31.6

18.9

951

12.7

7.5

373

25.0

704

-23.2

-16.4

8.8

9,240

79.5

21.6

429

22.0

28,784

24.5

35.7

19.5

4,653

16.2

11.0

958

24.1

3,129

5.2

37.7

9,460

76.5

28.0

(INR m)

FY18E

470

9.6

30,302

5.3

34.3

19.4

4,527

14.9

9.8

1,269

24.7

3,197

2.2

40.0

9,240

78.3

25.4

24 April 2018

15

March 2018 Results Preview | Sector: Technology

Zensar Technologies

Bloomberg

Equity Shares (m)

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

52-Week Range (INR)

1,6,12 Rel Perf. (%)

ZENT IN

45.4

41 / 1

1000 / 730

3 / 14 / -14



Financial Snapshot (INR b)

y/e mar

2017 2018E 2019E 2020E

Sales

EBITDA

PAT

EPS (INR)

EPS Gr. (%)

BV/Sh. (INR)

RoE (%)

RoCE (%)

Payout (%)

Valuations

P/E (x)

P/BV (x)

EV/EBITDA (x)

Div Yld (%)

30.6

31.1

36.1

40.6

3.8

3.8

4.8

5.9

2.3

2.3

2.8

3.7

52.1

51.9

63.1

82.6

-24.1

-0.3

21.6

30.9

325.9 363.9 414.1 477.5

17.2

15.0

16.2

18.5

23.2

18.8

22.1

24.1

23.0

22.8

17.6

19.9

17.3

2.8

9.7

1.3

17.4

2.5

9.7

1.3

14.3

2.2

7.3

1.2

10.9

1.9

5.6

1.8



CMP: INR 901



TP: INR1,100 (+22%)

Buy

We expect revenue of USD127m, representing growth of 3.2%

QoQ. This would translate into 1.9% QoQ CC growth, a cross-

currency tailwind of 30bp for ZENT.

Growth would be a function of strength in Digital, recovery in the

US and portfolio rationalization.

We expect EBITDA margin to expand by 20bp QoQ to 13.5%. This

would mark the return of ZENT’s profitability to levels seen before

the margin shocker in 4QFY17, where EBITDA margin had touched

a low of 7.9%.

Our PAT estimate is INR688m, up 19.8% QoQ on account of

translation gains.

The stock trades at 14.3x FY19E and 10.9x FY20E earnings. Buy.





Key issues to watch for

Traction in Digital, large deals and other new initiatives.

Margin outlook, given restructuring of IMS business.

Progress on revival of revenue growth post US turnaround.

Quarterly Performance (IFRS)

Y/E March

Revenue (USD m)

QoQ (%)

Revenue (INR m)

YoY (%)

GPM (%)

SGA (%)

EBITDA

EBITDA Margin (%)

EBIT Margin (%)

Other income

ETR (%)

PAT

QoQ (%)

YoY (%)

EPS (INR)

Headcount

Utilization (%)

Offshore rev. (%)

E: MOSL Estimates

1Q

114

3.1

7,554

7.2

29.1

15.4

1,037

13.7

12.3

198

32.6

741

5.4

-2.8

16.4

8,238

79.8

31.2

FY17

2Q

3Q

116

118

1.8

1.3

7,703

7,865

1.8

3.9

30.1

30.2

15.6

16.4

1,111

1,085

14.4

13.8

12.8

12.3

70

201

29.6

30.2

704

800

-5.0

13.7

-22.9

11.9

15.6

17.7

8,316

8,564

80.1

79.5

33.8

33.5

4Q

112

-4.9

7,433

-0.4

27.7

19.9

585

7.9

6.2

-228

45.5

104

-87.0

-85.2

2.3

8,524

79.2

34.5

1Q

114

2.2

7,367

-2.5

27.6

17.4

748

10.2

7.7

203

32.0

472

354.7

-36.3

10.5

8,567

83.2

37.5

FY18E

2Q

119

3.8

7,626

-1.0

28.8

17.2

884

11.6

9.3

194

26.8

608

29.0

-13.6

13.5

8,414

85.9

37.5

FY17

3Q

123

3.4

7,937

0.9

30.1

16.8

1,054

13.3

11.3

49

33.7

574

-5.7

-28.3

12.7

8,597

84.8

37.0

4QE

127

3.2

8,143

9.6

30.2

16.7

1,096

13.5

11.2

161

28.0

688

19.8

562.9

15.2

8,897

81.0

35.3

459

1.4

30,556

3.1

29.3

16.8

3,819

12.5

10.9

241

31.6

2,349

-24.1

52.1

8,524

79.7

33.2

(INR m)

FY18E

482

4.9

31,073

1.7

29.2

17.0

3,781

12.2

9.9

607

30.0

2,342

-0.3

51.9

8,897

83.7

36.8

24 April 2018

16

In conversation

1. UNITED BREWERIES : See double-digit growth in super

premium brands; plans to launch own craft beer; Shekhar

Ramamurthy, Managing Director













Industry volume should grow between 5% and 8% over the next 12 months.

Has always been company’s objective to grow ahead of the market. Have

introduced a few new brands over the last couple of years.

Seeing very strong double-digit growth in super premium brands.

Have plans to launch own craft beer variety hopefully by the end of this year.

Have plans to enter the non-alcoholic beverage space. Hope to be in the market

by end of the year.

In West Bengal the industry is in steep decline of 30-40%. In Maharashtra the

industry has still not stabilized after the duty hike around October-November

last year.

Steep price increase of beer has been a dampener for the company.

2. PHOENIX MILLS : Development at hebbal will cater to north

bengaluru; Shishir Shrivastava, ED













Phoenix Mills and Canada Pension Plan Investment Board (CPPIB) joint venture

has invested Rs 650 crore in land for retail development in Bengaluru.

This is a grossly underserved part of north Bengaluru.

Company has captured entire Bangalore market with the acquisition. Existing

mall in east Bengaluru caters to the eastern and southern part of the city and

now the proposed development at Hebbal will cater to north and western

Bengaluru.

This acquisition is under joint venture under the platform that company has with

CPPIB.

Company currently operates little more than 6 million square feet of retail mall

space, and will develop around 5 million square feet of malls under CPPIB joint

venture.

Will be close to having 8.5 msf of retail assets after Bengaluru acquisition.

3. TCS : Extremely proud of achievement; N Chandrasekaran,

Chairman







Extremely proud. Have always maintained that company has enormous

potential and the digital transformation is only going to accelerate the market

potential.

Have always said that the digital transformation is going to be the biggest

opportunity because there is going to be more technology in every industry,

whether it's business-to-business (B2B) industry or business-to-consumer (B2C)

industry.

Have been making these commentaries and also parallelly investing and building

capabilities and being ready for this adoption cycle. And this adoption cycle is

gaining momentum - it's the start of next big run for company.

24 April 2018

17

From the think tank

1. Why Indian bond market rivals equities in volatility



If you walk into the treasury room in any of India’s public sector banks these days,

you’ll hear excited bond dealers shrieking over “breaking the support level” of the

price of a particular government paper and the excessive volatility—the typical

attributes of the stock market. In a little less than a year, the character of the

Indian bond market has radically changed. From a buyers’ market, it has become a

traders’ market. At least three data points illustrate the structural changes:

thinning volume, higher volatility and widening bid-ask spread. The trading

volume of the benchmark 10-year paper, the weathercock of market rates, has

now dropped to around Rs10,000 crore a day, from an average of Rs30,000-

Rs60,000 crore earlier. The overall traded volume in the market is down to

Rs15,000-Rs25,000 crore daily, one-fourth of its heydays when the traded volume

ranged from Rs50,000 crore to even a trillion.

2. An alternative to privatization of public sector banks



The troubles of the banking sector, and public sector banks (PSBs) in particular,

are well known. Reform proposals have focused largely on ownership and have

issued strident calls for privatization. Even if there was political support for this

idea, there are a few important challenges. The total current account and

savings account (CASA) base of PSBs in India was Rs30.2 trillion (including State

Bank of India, or SBI) and Rs 18.9 trillion (excluding SBI) in 2017. By and large,

this reflects the confidence of customers in the implicit government support to

these entities. One has to only recall the brouhaha on the Financial Resolution

and Deposit Insurance (FRDI) Bill’s bail-in issue to realize that banking customers

in India expect their deposits to not face any uncertainty, even when the bank is

failing. In such an environment, and where alternatives in the form of other

well-managed banks with significant branch networks are not yet fully in place,

privatization could cause a flight of savings from banking to physical assets—a

trend that has been in any case stubbornly persistent despite all the gains in

financial inclusion.

3. Fuel price hike: Don’t restrict OMC freedom; let them

continue to freely price petrol, diesel



Given the continuous hike in crude oil prices, by around 37%—from $52.49 per

barrel in April 2017 to $71.98 right now (Indian basket)—and the fact that we are

now in the last year before the elections, it is not surprising there is talk of the

government planning to ask PSU oilcos, IOC, HPCL and BPCL, to go slow on hiking

prices of petrol and diesel and, instead, absorb some of the hike in prices. While

PSU oilcos have been passing on the hikes to consumers so far, if oil touches $80

per barrel that some are predicting—from April 2 to April 20, Brent prices rose

8.3%, to $73.25 per barrel—no government would like to see petrol/diesel prices

shoot up. Though, with US shale production likely to rise 125,000 barrels per day

to touch 7 million in May, this will play a calming role. So far, to be fair, the

government has done a good job in curtailing subsidies, though a large part of the

heavy lifting was done by the fall in global prices. In 2013-14, when the Indian

crude oil basket was at $105 per barrel and under-recoveries were as high as Rs

143,738 crore, Rs 62,837 crore came from diesel alone—petrol prices had been

freed up in June 2010, so there were no under-recoveries.

18

24 April 2018

4. Making water-smart energy choices for development



Climate change undoubtedly poses a potent—even existential—threat to the

planet. But the current approach to mitigating it, which reflects a single-minded

focus on cutting carbon dioxide emissions, may end up doing serious harm, as it

fails to account for the energy sector’s depletion of water resources—another

major contributor to climate change. “Water is at the heart of both the causes

and effects of climate change,” a National Resource Council report declares.

And, indeed, the water cycle is inextricably linked to the energy exchanges

among the land, ocean and atmosphere that determine Earth’s climate. Just as

the accumulation of carbon in the atmosphere contributes to climate change, so

does the degradation and depletion of water resources. And these processes are

mutually reinforcing, each propelling and intensifying the other. Energy

extraction, processing (including refining), and production is highly water-

intensive. The energy sector is the largest consumer of water in every developed

country except Australia, where, like in most developing countries, agriculture

comes out on top.

International

5. The rising risk of global debt addiction



The global economy is likely to expand at its fastest pace since 2011, according

to new estimates from the International Monetary Fund (IMF). The ongoing

synchronized cyclical upswing is good news, but underneath this impressive

growth is a risk that is perhaps not being adequately recognized. The global

economy’s continued addiction to debt could pose financial stability and growth

risks going forward. The latest Fiscal Monitor of the IMF, released last week,

noted that global debt at the end of 2016 was at 225% of the gross domestic

product (GDP), which is 12 percentage points higher than the previous peak of

2009, when governments were on a deficit spending spree to prevent economic

collapse. Countries in all income groups have added to their debt pile, with

emerging markets taking the lead. Private sector debt has doubled in the last

decade in emerging markets. China alone has added about three-fourths of the

total increase in global private debt. There are at least four broad reasons why

policymakers across the world should be worried about rising global debt and its

consequences.

24 April 2018

19

Click excel icon

for detailed

valuation guide

Valuation snapshot

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

Motherson Sumi

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

Indian Bk

PNB

SBI

Union Bk

Aggregate

NBFCs

Aditya Birla Cap

Bajaj Fin.

Capital First

Cholaman.Inv.&Fn

Dewan Hsg.

GRUH Fin.

HDFC

HDFC Stand. Life

Indiabulls Hsg

L&T Fin Holdings

LIC Hsg Fin

Reco

Buy

Buy

Buy

Buy

Neutral

Buy

Buy

Buy

Sell

Buy

Neutral

Buy

Buy

Buy

Buy

Buy

Neutral

CMP TP % Upside

EPS (INR)

EPS Gr. YoY (%)

P/E (x)

P/B (x)

ROE (%)

(INR) (INR) Downside FY18E FY19E FY20E FY18E FY19E FY20E FY18E FY19E FY18E FY19E FY18E FY19E

861 1000

159 179

2854 3550

759 869

19635 19096

1567 1787

30934 34529

1329 1531

959 826

245 286

3718 3922

823 889

238 298

9061 10560

351 437

334 528

665 710

16

12

24

15

-3

14

12

15

-14

17

5

8

25

17

24

58

7

28.3

5.4

147.9

20.0

459.1

61.1

814.4

27.9

39.1

8.0

186.1

39.7

9.6

275.1

8.1

25.5

14.1

34.0

40.0

7.2

9.2

167.8 197.2

26.4

34.8

582.9 694.4

84.7 111.7

1,045.3 1,337.1

38.2

51.0

49.5

59.0

9.9

12.1

202.0 221.3

46.9

51.2

13.7

16.6

349.0 452.3

12.5

17.5

56.6

58.7

22.4

32.4

0.9

28.8

4.8

52.8

-3.0

-34.6

32.1

18.8

103.5

-1.3

10.0

45.1

107.8

10.6

5.0

28.8

20.4

18.7

-17.0

13.8

-79.9

15.3

19.4

-27.2

0.3

25.2

LP

21.9

29.3

-22.9

25.0

12.3

20.3

33.1

13.5

32.1

27.0

38.6

28.4

37.0

26.5

23.3

8.5

18.0

43.1

26.9

54.7

121.8

58.8

45.3

93.7

22.4

526.1

22.0

16.9

63.0

7.2

45.2

13.5

26.8

41.5

115.7

28.4

38.5

17.6

27.1

17.5

31.7

19.1

31.9

27.9

33.5

19.3

22.6

9.6

9.3

20.5

29.6

39.6

3.7

44.1

16.9

30.5

29.3

19.3

38.0

42.8

25.7

38.0

47.6

24.5

30.5

20.0

20.7

24.8

32.9

43.4

13.1

47.0

25.9

25.3

22.0

17.0

28.7

33.7

18.5

29.6

34.8

19.4

24.8

18.4

17.6

17.3

26.0

28.1

5.9

29.6

17.8

20.5

20.1

21.2

14.3

24.4

15.4

15.0

21.5

5.9

28.2

23.1

6.2

13.4

20.5

16.2

16.2

12.0

7.4

2,781

13.0

12.4

13.8

29.7

30.7

14.3

23.2

12.1

57.8

37.3

74.2

12.2

18.1

12.4

4.9

6.7

4.4

7.3

6.2

2.4

12.2

9.1

3.9

3.9

6.4

3.4

2.4

6.6

7.8

1.6

10.9

4.6

1.9

2.4

2.2

1.5

4.7

1.8

1.1

4.8

0.6

4.7

3.2

0.9

2.8

3.1

0.9

0.6

0.6

1.0

0.6

1.0

0.5

0.8

4.2

5.6

4.0

6.2

5.6

2.2

9.2

7.6

3.4

3.5

5.5

3.0

2.1

5.8

6.5

1.3

8.4

3.8

1.8

2.1

2.0

1.4

3.7

1.7

1.0

4.1

0.6

4.0

2.9

0.8

2.4

2.7

0.9

0.6

0.6

0.9

0.6

0.9

0.4

0.8

17.3

24.3

23.9

20.9

15.2

9.8

36.3

20.8

18.3

12.6

34.1

14.6

10.4

19.7

19.2

13.5

25.3

17.7

5.1

10.9

1.7

9.6

17.9

7.2

6.8

16.5

9.1

11.3

11.9

6.9

17.4

11.0

18.0

27.6

24.6

23.3

17.5

12.4

35.5

23.8

18.7

14.0

32.2

14.8

13.1

21.8

25.4

24.0

32.0

21.6

9.0

11.1

10.0

10.2

16.9

11.1

6.9

20.6

9.9

13.5

13.2

13.7

19.1

13.0

Buy

Neutral

Buy

Buy

Buy

Buy

Neutral

Buy

Buy

Buy

Buy

Buy

Buy

506

196

149

97

1933

280

48

1876

59

1171

502

26

313

650

175

185

124

2400

370

65

2150

100

1302

628

38

382

28

-11

24

28

24

32

34

15

70

11

25

48

22

12.8

8.0

1.1

5.6

67.8

11.1

3.0

60.2

8.8

32.7

15.4

1.9

18.2

24.7

9.7

7.0

6.8

79.3

18.1

3.2

87.4

10.0

41.5

21.8

4.1

23.4

44.0

11.5

10.7

8.5

94.5

25.5

3.8

106.9

14.4

54.1

29.3

5.3

30.2

78.2 39.7

17.9 24.6

51.2 132.6

25.9 17.5

19.3 28.5

40.8 25.1

19.2 16.1

22.3 31.2

43.6 6.7

30.5 35.8

34.7 32.7

28.9 13.4

28.9 17.2

34.5 28.4

42.3

NM

NM

10.2

NM

84.9

NM

0.0

43.1

42.3

18.6

27.1

15.6

67.4

42.8

89.3

14.7

25.1

14.1

Buy

Neutral

Neutral

Buy

Buy

Buy

Neutral

144

102

262

309

94

243

94

185

112

280

371

160

362

104

28

9

7

20

70

49

11

3.4

-18.8

-2.4

30.3

-5.7

2.9

-38.8

8.9

6.3

21.9

41.6

0.0

18.7

7.6

15.7 -43.1 161.5 75.6

12.1 Loss LP 91.8

61.3

PL

LP 179.6

47.7 3.7 37.2 14.5

14.3

PL

LP 42,272

34.0 861.1 553.8 81.6

17.1

PL

LP 125.6

PL

LP 101.3

42.4

34.2

27.5

20.2

26.0

20.4

16.9

25.8

20.9

29.0

18.7

2.0 5.0

-7.7 3.0

-0.4 4.1

9.7 12.3

-3.0 0.0

-0.3 5.7

-16.0 3.4

-0.8 5.5

Buy

Buy

Buy

Buy

Buy

Neutral

Buy

Buy

Buy

Buy

Neutral

159

1894

638

1663

582

668

1831

493

1323

166

550

225

2330

960

1750

720

600

2225

475

1650

240

608

42

23

51

5

24

-10

22

-4

25

45

11

3.7

5.3

7.6

NA 45.2

44.8 61.7

82.8 39.8 37.8

34.2 44.6

56.8 38.9 30.2

61.3 71.7

86.2 33.3 17.0

37.3 48.0

60.5 25.9 28.7

9.9 11.6

13.9 21.9 16.6

42.7 49.0

57.3 7.3 14.7

5.5

6.6

8.4 23.5 20.4

90.2 108.8 131.5 31.5 20.6

6.6

9.2

11.8 26.0 39.1

38.9 44.3

52.6 1.8 13.8

4.2 3.2 12.6 12.4

6.7 5.6 19.8 19.9

2.4 2.1 13.7 15.6

5.0 4.2 20.2 19.8

2.1 1.8 14.0 15.9

19.8 16.4 32.6 31.0

4.9 4.3 18.3 17.5

3.2 2.7 21.7 21.7

4.4 3.8 30.7 33.2

2.7 2.4 13.1 14.0

2.2 1.9 16.6 16.5

24 April 2018

20

Click excel icon

for detailed

valuation guide

CMP

(INR)

605

514

437

1354

614

2312

1591

TP % Upside

EPS (INR)

(INR) Downside FY18E FY19E FY20E

750

24

18.6 24.2

30.0

575

12

13.9 19.2

23.0

475

9

44.0 44.7

49.8

1750

29

50.9 67.5

88.1

740

21

32.9 39.0

46.0

2550

10

115.2 138.7 167.3

1925

21

77.5 110.6 134.5

EPS Gr. YoY (%)

FY18E FY19E FY20E

24.0 29.6 24.1

95.8 38.7 19.4

48.9 1.6 11.4

61.0 32.7 30.4

13.0 18.5 18.1

36.6 20.4 20.6

39.8 42.7 21.7

28.5 24.0 22.8

16.2

7.6

19.4

26.9

18.4

58.8

18.6

19.8

14.2

24.1

28.3

19.8

13.8

23.7

23.9

9.8

13.9

18.5

56.8

31.0

19.2

41.3

14.2

41.8

40.5

27.6

133.3

32.7

39.7

32.5

43.5

33.4

31.5

Valuation snapshot

P/E (x)

P/B (x)

ROE (%)

FY18E FY19E FY18E FY19E FY18E FY19E

32.5 25.1 4.6 4.0 20.2 17.0

37.0 26.7 3.5 3.2 10.9 12.5

9.9

9.8

2.2 1.9 24.5 20.9

26.6 20.0 3.7 3.2 14.6 17.0

18.6 15.7 2.9 2.5 16.7 16.9

20.1 16.7 2.7 2.4 14.2 15.1

20.5 14.4 2.9 2.4 14.7 18.3

31.1 25.1 4.6 3.9 14.7 15.6

67.2

21.0

28.2

47.9

45.4

72.5

32.0

24.4

37.3

49.0

26.3

27.9

55.1

42.6

40.3

15.9

36.3

32.1

41.0

33.1

100.2

57.9

22.8

51.8

73.2

35.6

105.0

50.8

37.4

25.2

46.7

53.4

42.8

44.2

18.9

24.7

32.3

35.7

44.4

23.7

22.4

34.1

39.9

22.6

23.8

35.8

35.1

32.2

15.1

30.7

26.6

30.5

25.8

17.6

41.6

11.1

22.6

27.8

28.8

39.8

24.8

18.6

13.6

36.1

33.5

26.3

46.4

50.7

39.1

39.6

36.8

195.9

45.7

32.3

51.4

27.0

34.3

7.8 6.8 11.6 15.4

3.5 3.2 16.6 16.7

1.0 1.0 3.6 4.0

9.5 8.8 20.4 28.3

19.8 16.2 50.2 49.9

1.2 1.2 1.7 2.7

5.1 4.7 16.5 20.7

3.5 3.2 13.9 14.1

8.1 7.1 23.5 22.3

9.3 8.2 18.9 20.5

5.7 4.8 21.7 21.1

3.5 3.2 13.0 13.9

5.0 4.6 9.1 12.9

7.9 6.7 20.0 20.6

4.6 4.2 11.9 13.6

2.6 2.3 17.1 16.0

5.8 5.1 16.9 17.6

3.5 3.3 11.0 12.2

2.4

3.3

1.7

4.9

1.5

0.9

3.4

4.8

2.9

5.8

2.4

2.0

6.8

4.4

3.3

14.5

19.6

22.4

11.2

12.8

9.9

11.2

7.3

46.4

6.7

6.4

2.3

3.1

1.6

4.4

1.3

0.9

3.1

4.2

2.7

4.8

2.1

1.7

5.8

4.0

3.0

12.9

16.9

21.0

10.0

11.3

9.4

9.8

6.7

45.6

6.2

6.3

6.1

10.1

1.7

8.9

6.9

1.7

4.8

14.3

2.8

11.9

6.5

9.7

15.4

8.5

7.8

26.8

33.9

49.9

25.4

30.1

-1.8

24.0

20.7

78.2

22.8

14.3

7.8

12.4

9.6

11.3

12.9

3.9

11.7

15.6

7.1

21.2

12.0

15.6

17.3

12.5

11.5

29.4

35.8

55.5

26.7

32.6

4.9

22.8

21.6

89.6

23.8

18.5

Company

MAS Financial

M&M Fin.

Muthoot Fin

PNB Housing

Repco Home

Shriram City Union

Shriram Trans.

Aggregate

Capital Goods

ABB

Bharat Elec.

BHEL

Blue Star

CG Cons. Elec.

CG Power & Indu.

Cummins

Engineers India

GE T&D

Havells

K E C Intl

L&T

Siemens

Solar Ind

Thermax

Va Tech Wab.

Voltas

Aggregate

Cement

Ambuja Cem.

ACC

Birla Corp.

Dalmia Bharat

Grasim Inds.

India Cem

JK Lakshmi Ce

Ramco Cem

Orient Cem

Prism Cem

Sagar Cements

Sanghi Inds.

Shree Cem

Ultratech

Aggregate

Consumer

Asian Paints

Britannia

Colgate

Dabur

Emami

Future Consumer

Godrej Cons.

GSK Cons.

HUL

ITC

Jyothy Lab

Reco

Buy

Buy

Neutral

Buy

Buy

Buy

Buy

Sell

Buy

Sell

Neutral

Buy

Neutral

Buy

Buy

Neutral

Buy

Neutral

Buy

Neutral

Neutral

Buy

Buy

Neutral

1333

137

89

794

231

83

736

154

385

546

426

1360

1089

1041

1131

531

654

1240

196

80

880

305

90

1040

200

430

630

385

1670

1285

1100

1350

700

660

-7

43

-10

11

32

9

41

30

12

15

-10

23

18

6

19

32

1

19.8

6.5

3.2

16.6

5.1

1.1

23.0

6.3

10.3

11.1

16.2

48.8

19.8

24.4

28.0

33.3

18.0

30.1

7.3

3.6

24.6

6.5

1.9

31.0

6.9

11.3

13.7

18.9

57.2

30.4

29.6

35.1

35.2

21.3

35.0 12.1 52.0

7.8

3.7 11.4

4.3 135.9 14.2

31.2 36.0 48.2

7.7

8.9 27.1

3.0 -72.2 63.3

36.8 -13.2 34.7

8.2 48.1 9.2

12.9 79.8 9.7

17.0 16.5 22.8

24.3 36.6 16.7

68.6 15.5 17.2

34.6 10.9 53.8

36.7 18.4 21.5

43.5 3.1 25.3

38.6 76.4 5.7

24.3 16.4 18.4

17.1 20.6

12.7

79.6

50.5

102.1

111.8

9.4

21.2

37.8

8.3

6.5

70.6

11.3

679.2

165.0

29.5

31.3

-74.0

34.0

-29.8

-48.5

-17.7

-11.9

LP

769.4

LP

59.3

-4.9

-19.3

-9.6

34.2

28.1

470.3

39.1

105.6

129.3

163.8

23.4

163.6

105.1

101.0

86.0

29.5

59.5

62.3

Neutral

Neutral

Buy

Buy

Neutral

Neutral

Buy

Buy

Buy

Buy

Not Rated

Buy

Buy

Buy

247 264

1568 1747

744 1004

3006 3350

1088 1187

150 148

420 470

855 967

142 179

121 159

941

-

115 157

17096 19116

4139 4799

7

11

35

11

9

-1

12

13

26

32

36

12

16

6.0

47.4

7.4

52.0

47.6

2.9

5.7

24.0

1.3

2.4

25.2

4.6

365.7

77.5

8.1

60.7

42.3

72.3

97.9

6.6

15.1

29.7

3.6

4.9

50.6

8.5

473.5

123.7

Neutral

Buy

Buy

Buy

Buy

Buy

Neutral

Neutral

Buy

Neutral

Neutral

1179

5324

1105

357

1142

59

1114

5932

1451

275

375

1250

6180

1420

430

1475

76

1140

6230

1530

275

405

6

16

29

20

29

29

2

5

5

0

8

21.5

84.2

24.0

7.6

25.0

-0.1

21.3

161.0

24.0

9.0

8.5

25.4

30.5 2.1 18.2 20.2 54.9

105.1 131.5 14.3 24.8 25.1 63.2

28.3

33.8 12.9 17.9 19.7 46.1

9.0

10.5 4.5 19.2 16.2 47.2

31.0

36.9 -5.7 23.8 19.1 45.6

0.3

1.1 Loss LP 276.5 NM

24.4

27.8 12.7 14.4 14.1 52.3

183.8 215.7 3.1 14.1 17.4 36.8

28.3

33.3 22.1 17.9 17.8 60.6

10.2

11.4 6.6 13.7 12.4 30.7

10.9

13.6 -24.8 29.3 24.0 44.3

24 April 2018

21