Morning India: Capital Goods (Thematic): Industrial capex

27 March 2018

Market snapshot

Equities - India

Chg .%

Sensex

33,066

1.4

Nifty-50

10,131

1.3

Nifty-M 100

18,713

1.3

Equities-Global

Chg .%

S&P 500

2,659

2.7

Nasdaq

7,221

3.3

FTSE 100

6,889

-0.5

DAX

11,787

-0.8

Hang Seng

12,198

0.6

Nikkei 225

20,766

0.7

Commodities

Chg .%

Brent (US$/Bbl)

-0.5

Gold ($/OZ)

1,353

0.5

Cu (US$/MT)

6,556

-0.9

Almn (US$/MT)

2,026

0.0

Currency

Chg .%

USD/INR

64.9

-0.2

USD/EUR

1.2

0.7

USD/JPY

105.4

0.6

YIELD (%)

1MChg

10 Yrs G-Sec

7.6

0.07

10 Yrs AAA Corp

8.4

0.06

Flows (USD b)

26-Mar

MTD

FIIs

-0.1

1.9

DIIs

0.3

0.7

Volumes (INRb)

26-Mar

MTD*

Cash

380

344

F&O

9,325

8,753

Note: YTD is calendar year, *Avg

YTD.%

-2.9

-3.8

-11.5

YTD.%

-0.6

4.6

-10.4

-8.8

4.2

-8.8

YTD.%

4.1

3.9

-9.0

-10.2

YTD.%

1.6

3.7

-6.5

YTDchg

0.3

0.5

YTD

2.1

3.2

YTD*

387

8,089

Today’s top research theme

Capital Goods (Thematic): Industrial capex – On recovery path

Oil & Gas, Steel and Cement capex to drive revival over FY17-21



Post a decline in the period FY12-17, green shoots of recovery are visible in

industrial capex; we expect a recovery during FY17-21e, driven by a revival in Oil

& Gas, Cement and Steel capex. Capex in the O&G space is being driven by the

BS VI emission norm related upgrades (INR300b spend), brownfield/greenfield

refinery expansions by various PSU oil marketing companies and revival of five

fertilizer units (FY17-21E capex CAGR growth of 8%).



Cement sector capex primarily in East India; Waster Heat Recovery Generators

(WHRG) also being deployed (FY17-21E capex CAGR growth of 9%). Within the

steel sector, rising commodity prices along with import tariffs has led to metal

companies announcing capacity additions (FY17-21E capex CAGR growth of 7%)

– TATA Steel and JSW Steel are the front runners.



Consumer oriented sectors (Auto, FMCG, Consumer durables) capex growth to

remain steady during FY17-21e; pharma declines on sector head winds. Our top

picks to play the industrial capex recovery are Engineers India (BUY,

TP:INR200), Thermax (BUY, TP:INR1350), L&T(BUY, INR1670) and Cummins

India(BUY, TP:INR1040)

Research covered

Cos/Sector

Key Highlights

Capital Goods (Thematic) Industrial capex – On recovery path

KNR Constructions

Automobiles

Declared L1 in two HAM projects worth INR29.6b

March volume estimates

Chart of the Day:

Capital Goods (Thematic): Industrial capex – On recovery path

Sector-wise capex growth (FY04-21E)

Research Team (Gautam.Duggad@MotilalOswal.com)

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

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

In the news today

Kindly click on textbox for the detailed news link

H1FY19 Gross Market

Borrowing: Govt fixes target at

Rs 2.88 lakh crore

The Union government will

borrow just 47.5% of its budgeted

full-year target (gross) through

bonds in the first half of 2018-19

— much lower than the 60-65% in

the corresponding period over the

previous five years — and take

more from the National Small …

Manipal, Fortis hospitals to meet this week to approve proposed

merger

The boards of Manipal Health Enterprises Pvt. Ltd, and Fortis Healthcare

Ltd will meet in the next couple of days to approve the proposed merger

of hospital chains of Fortis and Manipal, according to two people aware of

the development. “Most probably, the board meetings of Fortis and

Manipal will take place on Tuesday or the day after to discuss the merger

process. A plan to acquire a majority stake in SRL Diagnostics by Manipal

Health will also be discussed at the Manipal board meet,” said the second

person on condition of anonymity.

Essar steel bids: ArcelorMittal

disputes bar; Jindal too is keen

Days after Russia’s Numetal

approached the Ahmedabad

bench of the National Company

Law Tribunal (NCLT) seeking a

declaration that it is eligible to

submit a resolution plan for Essar

Steel, the LN Mittal-led

ArcelorMittal has also knocked on

the doors of the tribunal,

challenging its deemed ineligibility

in bidding for the beleaguered ...

GTL files plea in NCLT to

recover Rs12,500 crore dues

from Aircel

GTL Infrastructure Ltd has filed a

fresh intervention application in

the Mumbai bench of the National

Company Law Tribunal (NCLT) to

recover operational dues of Rs500

crore and contractual claims of

over Rs12,000 crore from Aircel

Ltd, said two people aware of the

matter. These claims were against

the premature exit of Aircel ...

JSW Steel to invest $500

million in Texas unit, to treble

capacity

The JSW Group will invest up to

USD 500 million more in its steel

pipes and plates facility in Texas,

helping it achieve the full 1-

million tonne installed capacity

of the plant it had bought in

2007 and stop sourcing raw steel

from Latin America and India.

The JSW group had bought the

then bankrupt Baytown steel

asset for USD 810 million in

October 2007, and is operating

at just about 30 per cent or 3

lakh tonne now.

Tata Power to sell Tata Comm

stake

The board of Tata Power has

approved the sale of its holding

in Tata Communications and

Panatone Finvest to Tata Sons

and its affiliates for

₹2,150

crore. Tata Power holds 4.71%

and Panatone Finvest 30.1% in

Tata Communications. “The

move is a part of the company’s

plan to monetise its non-core

assets and improve the balance…

27 March 2018

40,000 MW Capacity: Govt

mulls SPV to run stressed

power units

Amid the prospect of insolvency

proceedings being initiated for

several stressed power plants,

the power ministry has proposed

that instead, state-run lenders

Power Finance Corporation (PFC)

and Rural Electrification

Corporation (REC) along with the

country’s largest power

generator NTPC form a special

purpose vehicle (SPV) to run …

Industrial Capex | On recovery path

Capital Goods

Industrial capex – On recovery path

Oil & Gas, Steel and Cement capex to drive revival over FY17-21



After a decline over FY12-17, green shoots of recovery are visible in industrial capex.

We expect Oil & Gas, Cement and Steel capex to be the key drivers of this recovery

over FY17-21.

Capex growth in consumer-oriented sectors (Auto, FMCG, Consumer Durables) would

remain steady during FY17-21; Pharma could see a decline on sector headwinds.

Our top picks to play the industrial capex recovery are Engineers India (BUY; TP:

INR200), Thermax (BUY; TP: INR1,350), L&T (BUY; TP: INR1,670), and Cummins India

(BUY; TP: INR1,040).

We have done a deep dive into the capex plans of the companies constituting the

BSE 200 index (representative of the industrial capex cycle in India, in our view) over

the period 1995-2021. Our key findings:

Green shoots of recovery in industrial capex visible

Industrial capex in India has been subdued over the past 5-6 years, as reflected in

the weak capex spends of Indian companies, corroborated by weak orders for

equipment suppliers and muted industrial credit growth. However, capex by

consumer-oriented sectors like Autos, Telecom, Media, FMCG, Food & Beverages

and Consumer Durables/Electronics has continued largely uninterrupted. Post the

cyclical downturn in the core sectors, we are starting to see green shoots of

recovery in sectors like Oil & Gas (O&G), Steel, Cement, and Fertilizers, which should

strengthen hereon. Private sector capex in the Power sector will be towards

renewables; a revival is unlikely in coal-fired plants.

Capital Goods

Industrial capex -

On recovery path

Oil & Gas capex driven by BS-VI emission upgrade, and expansion in

Refining, Petrochemicals and Fertilizers

Capex in the O&G space is being driven by BS-VI emission norm-related upgrades

(INR300b spend) along with brownfield/greenfield refinery expansions by state-

owned oil marketing companies. Additionally, five fertilizer plants are also being

revived, providing further capex opportunities in this space. We estimate total O&G

capex over FY17-21 at INR2.2t (8% CAGR ex Reliance and ONGC). Ordering in the

sector has begun – Engineers India is already sitting on a multi-year high backlog;

Ankur Sharma

equipment suppliers and EPC contractors (Thermax, L&T, ABB, and Siemens) should

Ankur.vsharma@MotilalOswal.com

benefit over the next few quarters.

27 March 2018

Sector-wise capex growth (FY04-

21E)

Sector

Auto

Cap Goods

Cement

FMCG

Infra

TMT

Metals

Oil & Gas

O& G (Ex RIL

and ONGC)

Pharma

Power

Others

FY04-

35%

50%

46%

25%

61%

50%

38%

25%

30%

33%

FY12

-17

-8%

-7%

-30%

21%

-11%

19%

24%

-3%

FY17-

21E

Cement sector capex primarily in East India; waste heat recovery

generators (WHRGs) also being deployed

Region-wise, utilization has already crossed 80% in North and East India, and is at

~75% in West India and ~55% in South India. Capacity addition is primarily being

planned by companies in East India due to strong demand (growing at ~12% YoY).

Among the listed companies, UltraTech, Dalmia Bharat and Shree Cement are

-2%

adding capacities. JSW Cement, an unlisted player, is looking to add ~8mtpa of

capacity. Most cement players are evaluating WHRGs to reduce electricity

-15%

consumption. We estimate cement capex to grow at a CAGR of 9% over FY17-21.

-6%

-8%

-2%

Steel capex revival driven by cash-rich companies

With rising commodity prices and protection of import tariffs, Metals companies are

announcing capacity additions (FY17-21E capex CAGR growth of 7%). Tata Steel and

JSW Steel have already started work on their respective plants. However, quite a

few steel players like Bhushan Steel, Monnet Ispat, Essar Steel, Electrosteel remain

under stress and their assets are in the process of being sold by their lenders under

the Insolvency and Bankruptcy (IBC) code. In our view, a full-fledged revival in the

sector’s capex would happen only after these assets are sold and existing capacities

are fully utilized.

Power sector capex muted for coal-fired plants; emission control

equipment an INR1.3t opportunity over CY18-22

Capex in the Power sector has largely shifted towards renewables at the cost of

coal-fired plants; this is especially true for private sector capex in Power. We do not

expect any revival in coal-fired capex in the medium term (FY17-21E: -8% CAGR) and

expect the share of renewables to continue to rise – India has committed to raising

the share of renewables to 40% of total energy mix by 2030.

Consumer-oriented sectors continue steady capex

Sectors like Autos, FMCG, Consumer Durables/Electronics, F&B continue to add

capacity given strong end market demand. However, pharma capex would be muted

over FY17-21, driven by the deterioration in business environment for the sector.

Valuation and view

Our preferred plays for an industrial capex recovery are

Thermax

(Upgrade to BUY;

TP: INR1,350),

Engineers India

(Initiate with BUY; TP: INR200),

Cummins India

(BUY;

TP: INR1,040) and

L&T

(BUY; TP: INR1,670). Engineers India is a pure play on the

refining/petrochemicals capex revival and a preferred supplier for OMCs in India. It

has already bagged the bulk of the orders relating to BS-VI emission norms and will

likely retain a majority of the PMC orders for upcoming refineries. Thermax, L&T and

Cummins are our preferred plays on overall industrial capex revival with their

diversified offerings across segments in Steel, Cement, consumer-facing sectors and

Refining. Key risks to our ratings: (a) sharp downturn in key end markets, and (b)

sharply higher competition, especially from Chinese players.

27 March 2018

KNR Constructions

BSE SENSEX

33,066

S&P CNX

10,131

26 March 2018

Update

| Sector:

Infrastructure

CMP: INR282

TP: INR375 (+33%)

Buy

Declared L1 in two HAM projects worth INR29.6b



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 (%)

KNRC IN

141

349 / 177

-1/31/43

39.7

0.6

50.0

44.6

KNR has emerged as L1 in two HAM projects worth INR29.6b. Both the projects

are in South India (Andhra Pradesh and Telangana) where it is a dominant

player.

For the Andhra Pradesh project, KNR’s bid on net present Value stood at

INR15.3b, 3.2% below L2 bid and 13.4% below L3 bid (L2 bid stood at INR15.8b

and L3 bid at INR17.6b). Dilip Buildcon was L2 in the bid whereas IRB was L3 in

the bid. 80% of the Land availability exists for the project and KNR expects the

project to start contribution in 2HFY19.

NHAI benchmark cost for the Andhra Pradesh project stood at INR15.4b as

against KNR’s bid price of INR17.3b (13% above benchmark cost) and EPC

opportunity for KNR stands at INR11.6b.

For the Telangana project, KNR’s bid on net present Value stood at INR11.3b,

1.1% below L2 bid and 1.4% below L3 bid (L2 bid stood at INR11.4b and L3 bid

at INR11.5b). Montecarlo was L2 in the bid whereas Dilip Buildcon was L3 in

the bid. 80% of the Land availability exists for the project and KNR expects the

project to start contribution in 2HFY19.

NHAI benchmark cost for the Telangana project stood at INR9.5b as against

KNR’s bid price of INR12.3b (30% above benchmark cost) and EPC opportunity

for KNR stands at INR830m.

KNR’s order inflow for EPC business for YTDFY18 stands at ~INR35b as against

guidance of INR25b and order backlog stands at ~INR65b.

We maintain our positive view on KNR with Buy rating and SoTP target price

of INR375 (+33% upside).



Financials Snapshot (INR b)

2018E 2019E 2020E

Y/E Mar

Sales

18.0 20.0

27.8

EBITDA

3.6

3.2

4.3

2.4

2.0

2.6

EPS (INR)

16.9 14.0

18.2

EPS Gr. (%)

41.2 -17.3

30.2

BV/Share (INR)

79.3 93.0 111.0

RoE (%)

23.6 16.2

17.8

RoCE (%)

19.0 15.0

17.4

P/E (x)

18.5 22.4

17.2

P/BV (x)

3.9

3.4

2.8

Shareholding pattern (%)

As On

Dec-17 Sep-17 Dec-16

Promoter

55.4

57.4

58.1

DII

28.6

28.5

26.9

FII

3.9

3.3

4.5

Others

12.1

10.8

10.6

FII Includes depository receipts

Stock Performance (1-year)

KNR Construct.

Sensex - Rebased

365

305

245

185

125



27 March 2018

Sector Update

| 26 March 2018

Automobiles

Mar-18

Sales Estimates

Healthy festive and rural demand likely to drive PV/2W sales

Our interaction with the leading channel partners indicates strong demand momentum

across segments in March 2018, supported by festive demand (Gudi Padwa and Chaitra

Navratri) in the key northern, central and western markets.

CV wholesales are expected to remain healthy, despite a high base of last year, as demand

continues to outpace supply. PV retails have been healthy in the month, led by MSIL – new

Swift bookings stand at ~95k units, with average waiting period of ~3.5 months. In the 100-

125cc motorcycle segment, demand remains robust, with average retails growing at more

than 15%.

Key highlights:



CV wholesales are expected to remain healthy, as demand continues to outstrip

supply in key markets, partially due to supply shortage.



We expect AL’s wholesales to grow 12% YoY to 20.9k units, with the HCV and LCV

segments likely to grow 6.2% YoY and 38.8%, respectively. TTMT and VECV’s CV sales

are expected to grow by 18.1% and 13.1%, respectively.



In the PV segment, MSIL’s overall dispatches are expected to grow 14.8% YoY to

160.5k units. Compact and UV segments continue growing robustly by 21.8% and

16.8%, respectively.



Tata Motors’ PV segment is expected to grow 28.3% YoY, led by its new SUV ‘Nexon’,

as well as other new models like Tiago, Tigor and Hexa.



M&M’s volumes are expected to increase 7.6% YoY to 81.1k units, with tractor and UV

sales likely to grow by 13.8% and 5.7%, respectively.



In the 2W segment, BJAUT’s overall dispatches are expected increase 27.7% YoY to

348k units, led by growth of 29% in domestic sales and 25.5% in exports.



HMCL’s wholesales are expected to grow 9.5% YoY (+6% MoM) to 667.6k units.



TVSL is expected to grow by 21.6% YoY, with the motorcycle, scooter, moped and 3W

segments likely to grow by 28.7%, 22.5%, 6.5% and 81.5%, respectively. Exports are

expected to improve by 59% YoY to 59k units.



RE volumes are expected to grow by 26.6% YoY to 74k units.



We prefer 4Ws over 2Ws and CVs due to stronger volume growth and a stable

competitive environment. While we expect 2W volumes to benefit from a rural

recovery in the near term, competitive intensity remains high in the segment due to

changing customer preferences.



Our top auto picks are MSIL and Motherson Sumi in the large cap space, and Ashok

Leyland and Exide Industries in the midcap space. We also consider MM as the best

bet on a rural market recovery.

27 March 2018

In conversation

1. M&M : Entering FY19 without major headwinds; govt's focus

on rural economy is positive; Pawan Goenka, Managing Director



To project a growth much higher than 8-10 percent will be difficult. Will wait to

see how the monsoon forecast comes up.

Have managed margins in spite of all the commodity price increases. Don’t

expect a significant risk to a profitability unless company has some major

negative surprise.

Going in to the year with almost no headwinds. Goods and services tax (GST) is

all settled in.

Don’t expect to get another 20 percent growth. 8-10 percent growth is what

would be expected on a normal monsoon.

Expect that outperformance of SUV over passenger cars should continue. For

company, have two major launches coming up and also G4 Rexton from

Ssangyong coming in as a high-end SUV and therefore have three launches that

will happen of new products during this year.

Two of these three launches are in volume segment and therefore would expect

to see a significant growth in volume during next year. These two products are

in high volume segment and can easily give additional volume of 8,000-10,000

vehicles once both of them are launched.

2. COCHIN SHIPYARD : Will do better in FY18 in terms of

revenue; Madhu S Nair, CMD



The company repairs about 80-100 vessels a year in operations. Last year had

done about Rs 550 crore of turnover out of total gross turnover of Rs 2,058

crore which was a record turnover for ship repair. This year company is well

poised to do better than that.

There could be a big ticket ship repair order, the order size is higher than Rs 100

crore, coming company’s way in FY19.

All the defence projects are through tenders.

Ship repair business order book is around Rs 400 crore.

Normally expect 12 percent year on year growth and will do better than 12

percent growth in FY18.

3. KEC International wins new order worth Rs 2,419 crore; Vimal

Kejriwal, MD & CEO



Company has won new orders worth Rs 2,419 crore.

70 percent of these orders are from the T&D and the balance 30 percent are

from the railway sector. Rs 1,650 crore orders are from the T&D, part of it from

India and part of it from Afghanistan and America and the balance is the

composite order from railways.

This takes the company’s order book to roughly around Rs 17,500 crore.

Expect a revenue of close to Rs 150 crore in FY18 and Rs 500 crore in FY19.

27 March 2018

From the think tank

1. Congress heads back to the centre on economics



As the nation moves closer to the next general election, due in 2019, parties are

beginning to stake out their positions on economic policy, amongst other areas.

An important piece of the puzzle was filled in recently with the economic policy

resolution of the Congress party approved at its recent plenary meeting. This

document gives us a reasonably good sense of where the principal opposition

party stands, at least rhetorically, at this juncture. The main takeaway from the

resolution is that the Congress party is signalling that it wishes to go back towards

the centre on economic policy, and away from the left, marking a distinct change,

at least potentially, from the economic philosophy which animated the two

innings of the Congress-led United Progressive Alliance (UPA). The document

avers that the party “believes in the twin goals of inclusive economic growth

through private enterprise, a competitive and viable public sector and a robust

social safety net through a strong welfare state”.

2. India does not need Bombay club version 2.0



The siren calls for protectionism can be heard once again in some parts of Indian

industry. In interviews to the Business Standard newspaper last week, several

business leaders, such as Rahul Bajaj, Anil Agarwal, Sajjan Jindal, Harsh Goenka,

and Harsh Pati Singhania, have called for policies that would, in effect, roll back

the trade reforms that integrated India into the world economy after 1991. The

Narendra Modi government must not heed such advice. The current buzz brings

backs memories of the Bombay Club that criticized the economic reforms

unleashed by the P.V. Narasimha Rao government, arguing that the rapid

opening up of the Indian economy would hurt domestic industry since it

suffered from poor infrastructure, high domestic taxes, and expensive loans.

Internal reforms should precede external reforms. There were also fears that

making it easier for foreign companies to invest in India would lead to

acquisitions rather than new industrial capacity.

3. A $54 trillion miss highlights India’s bond disconnect



India has much to learn from the opening of China’s onshore bond market. Last

year, Beijing allowed overseas investors to access local-currency securities via its

so-called Bond Connect. On Friday, Bloomberg LP announced the inclusion of

Chinese government and policy-bank debt in the Bloomberg Barclays Global

Aggregate Index. Over a 20-month period starting in April next year, as many as

386 bonds will enter the $53.73 trillion benchmark, giving China a weight of 5.49%

at full inclusion. Yuan-denominated notes will end up with the fourth-largest

presence, after those in US dollars, euros and yen. Contrast this with India, which

has been on a path of gradual debt-market globalization for more than two

decades. Yet by limiting foreign participation to 5%, authorities have crimped the

prospects of India’s admittance to global gauges compiled by JPMorgan Chase &

Co. and Bloomberg.

27 March 2018

4. Why new Delhi welcomes a can-do Canberra



Over the last few years, the emerging closeness between India and Australia has

often made news, but such enthusiasm has been, at times, short-lived.

However, with the Indo-Pacific in flux—results of China’s growing assertiveness

as well as uncertainty about American leadership—middle and emerging powers

in the region find themselves contemplating the need to join hands. Australia

and India are not exceptions in this regard. Moreover, the rebirth of the

Quadrilateral Security Dialogue (commonly known as the Quad) in November

last year and the importance given to India in the 2017 Australian Foreign Policy

White Paper, provide an even broader canvas for a sustainable, upward

trajectory in India-Australia relations. Historically, a key problem with Australia’s

bilateral relationships has been the fundamental dichotomy of its foreign policy,

to wit, the misalignment of Australia’s economic and political-security interests.

While Australia is reliant on the US for its defence and security through the

Australia-New Zealand-US treaty, its economy depends on China, which

accounts for the lion’s share of bilateral trade and investment Down Under.

International

5. What Italy’s election means for the EU



Italy’s recent election – in which voters rebuffed traditional parties in favor of

anti-establishment and far-right movements, producing a hung parliament –

should serve as a wake-up call for Europe. The decades-old project of building

European unity may not just be far less robust than assumed; without a

significant rethink, it may not even be viable. The financial crisis of 2008 and the

debt crisis that followed revealed major flaws in the governance of the

Economic and Monetary Union (EMU). Member states responded by building

new institutions, such as the Single Supervisory Mechanism and the European

Stability Mechanism. These efforts are, however, almost certainly inadequate to

make the EMU resilient enough to withstand future financial crises. Anyone who

believes in the European project should hope that further reforms follow soon.

But there is an even more urgent task at hand. The European Union (EU) and the

EMU, in particular, are now facing a serious political challenge, exemplified by

Italy’s recent election.

27 March 2018

Click excel icon

for detailed

valuation guide

CMP

(INR)

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

AU Small Finance

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

Reco

Buy

Neutral

Buy

Sell

Buy

Neutral

Buy

Neutral

% Upside

EPS (INR)

EPS Gr. YoY (%)

P/E (x)

P/B (x)

ROE (%)

Downside

FY18E FY19E FY20E FY18E FY19E FY20E FY18E FY19E FY18E FY19E FY18E FY19E

786

1000

144

158

2839 4031

700

880

17285 21951

1456 1899

27841 34764

1200 1540

808

714

223

286

3481 3986

748

889

207

303

8773 10972

316

437

332

515

620

741

-12

28.3 34.0 40.0 0.9

4.9

6.2

7.7

7.8

150.3 174.1 201.6 6.5

20.2 26.8 35.2 54.2

459.1 595.2 731.7 -3.0

63.1 84.7 111.7 -32.3

829.4 1,053.0 1,335.0 34.5

28.2 38.5 51.3 20.1

36.6 45.6 54.9 90.4

8.0

9.9

12.1 -1.3

185.0 200.1 212.6 9.4

37.7 43.9 48.4 37.8

9.6 12.2 15.1 107.8

275.6 369.9 471.3 10.8

8.1 12.5 17.5 5.0

28.0 57.9 58.5 41.1

13.9 25.1 33.9 18.5

19.9

10.6

14.7

7.4

0.9

5.5

67.0

12.5

3.0

61.1

8.6

32.7

15.8

1.9

18.2

15.3

31.0

9.0

6.6

6.5

80.6

16.5

3.2

78.9

12.2

41.5

22.7

3.8

23.9

21.6

44.6

10.9

10.2

8.2

100.9

21.0

3.9

101.4

16.8

54.2

30.3

4.9

30.8

-42.8

-4.4

5.3

-81.6

13.3

18.0

-18.3

0.4

27.0

22.0

33.0

-22.6

24.8

15.6

20.3

26.7

15.8

32.7

29.6

34.1

27.0

36.7

24.3

23.3

8.2

16.4

27.2

34.2

54.7

107.1

80.5

45.1

43.9

111.4

22.2

616.0

19.1

20.3

32.0

7.0

29.2

41.6

26.9

43.7

97.1

31.2

35.1

17.6

24.0

15.8

31.5

22.9

31.9

26.8

33.2

20.6

22.6

6.2

10.1

23.9

27.4

39.6

1.1

34.9

15.2

41.1

43.7

21.4

53.4

26.1

25.2

27.6

21.9

28.5

37.7

30.5

33.2

30.4

28.8

29.8

27.8

29.4

18.9

34.7

37.6

23.1

33.6

42.6

22.0

27.8

18.8

19.8

21.6

31.8

39.1

11.9

44.5

23.7

55.6

34.6

22.1

153.1

16.7

28.3

22.5

15.8

28.8

6.8

31.8

29.4

12.1

16.6

26.1

23.1

23.2

16.3

26.1

29.0

17.2

26.4

31.1

17.7

22.5

17.4

17.0

16.9

23.7

25.2

5.7

24.7

16.4

38.7

16.4

18.1

21.4

14.1

23.5

17.1

14.7

22.3

4.8

25.0

20.5

6.1

12.7

19.3

8.5

89.6

7.2

11.3

13.7

15.3

12.1

27.4

28.2

13.9

19.4

10.6

45.8

37.4

81.3

11.5

4.5

6.2

4.4

6.8

5.5

2.2

10.7

8.2

3.3

3.5

6.0

3.1

2.1

6.4

7.0

1.6

10.2

4.2

7.3

1.9

2.0

2.1

1.4

4.0

2.1

1.0

4.6

0.6

4.2

3.0

0.9

2.8

0.9

0.6

0.9

0.5

1.1

0.4

0.7

3.9

5.4

3.9

5.6

4.9

2.0

8.0

6.8

2.9

3.1

5.2

2.8

1.9

5.5

5.9

1.2

7.6

3.5

6.1

1.7

1.8

1.9

1.3

3.5

1.9

1.0

3.9

0.5

3.6

2.7

0.8

2.3

2.5

17.3

22.1

24.2

21.0

15.2

10.1

36.2

21.0

17.2

12.6

34.0

14.4

10.4

19.8

19.2

14.7

24.9

17.9

14.1

5.9

10.1

1.4

9.4

16.2

8.1

6.8

17.0

8.9

13.2

12.2

6.9

17.6

10.8

18.0

24.7

25.3

23.5

17.9

12.3

34.6

23.9

17.3

14.0

32.0

14.4

11.7

22.8

25.4

24.3

35.3

21.7

17.2

11.1

10.4

9.5

9.8

15.9

10.1

6.9

19.1

11.9

14.3

13.8

12.7

19.9

13.1

Buy

Neutral

Buy

Neutral

Buy

591

508

163

142

1893

281

1760

1040

465

303

705

710

188

205

149

2400

405

2076

100

1220

680

410

Buy

Neutral

Buy

Neutral

141

102

270

292

246

185

150

415

430

215

375

145

125

9.8

-15.6

12.6

34.1

5.7

3.2

-40.5

16.7

1.1

37.3

40.6

8.5

18.0

5.9

23.7 182.1 70.7 42.0 14.5

3.7 Loss LP 222.3 NM

70.6 -33.0 196.8 89.1 21.5

46.5 16.4 19.3 14.5 8.6

15.7 -8.8 49.5 84.7 16.9

29.7 978.7 459.4 65.3 76.8

15.3

LP 158.0 NM

-72.8 2,102 71.3 266.7

42.3

38.9

34.5

26.5

22.1

8.0

5.4

32.8

45.2

35.4

30.2

18.7

26.8

18.8

14.0

13.9

15.4

42.4

34.2

27.5

21.5

26.1

23.4

16.3

25.2

22.1

39.7

38.2

18.1

23.0

13.4

54.5

42.6

92.6

13.2

0.8 2.0 5.5

0.6 -6.5 0.6

0.5 2.3 6.8

0.8 10.8 11.9

0.5 2.9 4.3

1.0 1.6 8.4

0.4 -16.7 2.7

0.7 0.3 5.7

Buy

Neutral

Buy

146

1741

619

1424

503

541

1833

436

1205

225

2330

960

1520

720

540

2260

485

1630

3.7

5.3

7.6

45.6 61.7 82.8

34.2 44.6 56.8

61.8 73.3 89.1

37.4 47.5 59.9

9.9 11.8 14.6

43.0 49.0 57.0

4.7

5.4

6.7

91.1 105.1 128.3

3.9 3.0 12.6 12.4

6.1 5.2 20.2 19.8

2.3 2.0 13.7 15.6

4.3 3.6 20.4 20.2

1.8 1.6 14.0 15.8

16.3 13.4 32.9 32.2

5.0 4.4 17.6 16.5

2.9 2.4 21.7 21.1

3.7 3.3 29.9 30.4

27 March 2018

Click excel icon

for detailed

valuation guide

CMP

(INR)

156

544

566

438

384

1189

546

2087

1418

(INR)

240

608

750

575

475

1750

740

2500

1750

Valuation snapshot

Company

L&T Fin Holdings

LIC Hsg Fin

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

J K Cements

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.

Reco

Buy

Neutral

Buy

Neutral

Buy

% Upside

EPS (INR)

EPS Gr. YoY (%)

P/E (x)

P/B (x)

ROE (%)

Downside

FY18E FY19E FY20E FY18E FY19E FY20E FY18E FY19E FY18E FY19E FY18E FY19E

7.4

38.5

18.6

13.9

43.8

51.4

33.4

114.2

78.7

11.0 13.5 42.2

44.3 52.6 0.6

24.2 30.0 24.0

19.2 23.0 95.8

44.8 49.3 48.1

69.0 92.3 62.4

39.0 46.0 14.6

140.0 166.8 35.4

104.8 125.9 42.1

28.2

30.1

7.9

2.9

24.6

6.5

1.9

31.0

6.9

11.6

13.9

18.7

57.8

30.4

29.6

35.1

34.8

20.2

47.1

15.2

29.6

38.7

2.3

34.4

16.8

22.6

33.1

22.8

23.2

18.7

24.1

19.4

10.2

33.7

18.1

19.2

20.2

22.6

20.9

14.1

30.3

31.6

8.8

23.1

16.4

18.3

18.0

27.9

14.2

12.3

23.4

22.8

8.6

17.2

14.0

14.9

13.5

22.7

42.7

18.0

28.3

31.2

36.2

40.9

23.7

22.8

33.4

35.5

20.6

22.4

36.2

34.4

32.8

14.3

30.4

25.5

27.7

24.6

16.3

36.6

9.0

18.7

17.6

24.7

24.3

24.9

23.9

17.2

12.6

37.3

29.0

22.7

3.1

2.2

4.3

2.9

2.0

3.2

2.6

2.4

2.5

4.2

2.6

1.9

3.7

2.7

1.7

2.8

2.2

2.1

2.2

3.6

15.9

16.4

20.2

10.9

24.3

14.7

16.9

14.1

14.9

15.0

19.7

16.5

17.0

12.5

21.0

17.4

16.9

15.2

17.5

15.8

Sell

Buy

Sell

Neutral

Buy

Neutral

Buy

Neutral

Buy

Neutral

Buy

Neutral

Buy

Neutral

1285

143

767

234

736

157

386

493

386

1295

1100

1019

1153

497

614

1240

210

780

305

1040

200

435

640

385

1670

1285

1100

1350

700

630

-4

-3

19.8

7.1

3.0

16.6

5.1

1.1

23.0

6.3

10.6

11.4

16.1

48.6

19.8

24.4

28.0

33.2

18.0

35.0 12.1 52.0 16.2 64.9

8.4 12.6 12.0 6.3 20.1

4.0 123.6 -2.6 37.5 27.5

31.2 36.0 48.2 26.9 46.2

7.7

9.8 26.1 18.4 45.6

3.0 -72.2 63.3 58.8 66.8

36.8 -13.2 34.7 18.6 32.0

8.2 48.1 9.2 19.8 24.9

13.2 84.1 9.6 13.9 36.6

17.2 19.4 21.6 24.1 43.2

24.1 35.5 16.6 28.5 24.0

69.6 14.9 18.9 20.4 26.6

34.6 10.9 53.8 13.8 55.7

36.7 18.4 21.5 23.7 41.8

43.5 -9.1 25.3 23.9 41.1

38.4 76.0 4.9 10.3 15.0

23.0 16.4 12.4 13.8 34.1

17.2 19.8 19.6 30.5

10.9

76.9

50.6

107.6

145.0

10.4

76.9

25.0

38.8

10.3

6.3

70.6

12.0

724.2

178.4

29.5

31.3

-69.0

41.2

-47.5

-33.4

31.8

34.7

-10.8

713.3

102.0

10.0

-7.4

-7.7

38.4

31.1

378.7

41.5

235.5

101.9

27.3

97.2

25.3

66.8

113.1

101.0

53.5

3.0

53.0

74.3

30.4

23.6

19.5

39.0

21.4

37.7

36.0

35.2

27.2

88.7

33.4

39.7

34.6

66.2

31.1

31.2

38.3

32.3

78.2

51.8

30.3

37.7

22.5

48.7

30.4

41.6

51.0

34.6

19.4

38.4

44.4

39.5

7.6 6.6 11.6 15.4

3.6 3.2 17.9 18.0

0.9 0.9 3.4 3.3

9.2 8.5 20.4 28.3

20.0 16.4 50.6 49.8

1.1 1.1 1.7 2.7

5.1 4.7 16.5 20.7

3.6 3.3 13.9 14.1

8.1 7.1 24.1 22.7

8.4 7.4 19.4 20.8

5.2 4.3 21.6 21.0

3.3 3.0 13.0 14.1

5.1 4.7 9.1 12.9

7.7 6.6 20.0 20.6

4.7 4.2 11.9 13.6

2.4 2.1 17.1 15.8

5.4 4.8 16.9 16.8

3.4 3.1 11.0 12.2

2.3

3.2

1.6

4.6

1.5

0.8

3.4

3.6

4.2

2.7

5.5

2.2

2.0

6.3

4.1

3.2

2.2

3.0

1.5

4.1

1.3

0.8

2.9

3.2

3.6

2.4

4.6

2.0

1.7

5.5

3.7

2.8

12.2

15.4

19.9

8.8

10.6

8.5

9.7

7.3

6.1

10.1

2.1

9.4

5.2

2.2

16.4

7.7

14.4

6.6

11.2

6.5

10.8

17.6

9.7

8.0

26.9

33.9

49.9

25.4

29.0

-1.8

23.6

20.7

8.0

12.6

9.6

12.0

15.7

4.4

17.8

13.8

15.9

10.3

20.9

12.0

14.6

15.7

13.5

12.5

29.6

35.8

55.5

26.7

33.2

4.9

22.6

21.6

Neutral

Buy

Neutral

Buy

Not Rated

Buy

231

290

1532 1781

692

1234

2838 3328

1080 1242

141

148

998

1343

456

470

741

847

137

179

113

159

871

113

157

16254 22424

3947 5131

6.0

47.4

8.9

54.7

35.6

3.7

44.4

9.4

24.3

3.3

2.2

25.2

5.8

423.0

89.0

8.3

62.2

42.4

77.4

119.4

7.6

56.5

18.5

30.5

5.5

4.7

50.6

8.9

435.8

136.2

Neutral

Buy

Neutral

1119

4852

1043

315

1066

1101

6506

1270

5995

1365

415

1505

1065

6350

-3

-2

21.6

84.2

24.0

7.6

24.0

-0.1

20.9

161.0

25.6 30.8 2.7 18.8 20.2 51.8 43.6 13.8

105.1 131.5 14.3 24.8 25.1 57.6 46.2 17.9

28.3 33.8 12.9 17.9 19.7 43.5 36.9 21.2

9.0

10.5 4.5 19.2 16.2 41.6 34.9 9.9

31.3 37.3 -9.6 30.5 19.1 44.4 34.0 12.1

0.3

1.1 Loss LP 276.5 NM 177.5 8.9

24.1 27.5 10.6 15.1 14.2 52.7 45.8 11.1

183.8 215.7 3.1 14.1 17.4 40.4 35.4 8.0

27 March 2018

Click excel icon

for detailed

valuation guide

Valuation snapshot

P/B (x)

ROE (%)

FY18E FY19E FY18E FY19E

43.4 43.2 76.5 91.4

6.3 5.8 22.8 23.8

6.3 6.2 13.8 18.3

16.0 15.3 33.0 36.0

23.5 22.0 43.4 46.2

28.8 23.0 39.9 44.6

2.9 2.6 10.8 13.3

11.6 10.1 24.2 24.5

36.5 30.5 61.2 61.8

2.1 1.9 4.9 8.5

9.6 8.3 14.9 16.2

16.4 12.2 17.3 22.3

11.9 10.8 26.7 28.7

4.5 3.8 21.8 19.7

4.8 4.1 16.7 19.3

6.3 5.0 26.4 25.7

2.7 2.2 24.6 21.6

6.7 6.1 8.9 11.6

4.8 4.0 22.7 23.7

3.1 2.7 12.8 13.6

5.4 4.8 16.6 21.2

2.7 2.4 10.0 13.7

1.2 1.2 -0.7 2.2

2.9 2.5 16.4 15.3

1.9 1.7 13.2 13.9

10.4 11.9 23.9 30.5

3.1 2.8 10.5 13.0

3.1 2.6 19.7 21.4

3.5 2.9 14.1 18.3

2.3 2.1 10.4 12.0

5.8 5.3 16.1 16.8

3.8 3.2 11.0 19.0

2.2 1.9 4.6 12.1

3.2 2.9 8.8 13.3

4.4 3.8 17.6 19.9

3.4 3.0 12.6 14.8

2.4

1.3

3.6

2.1

1.9

3.1

1.8

2.8

2.2

1.1

3.0

3.2

1.8

1.7

2.9

1.7

2.6

5.5

15.5

23.6

13.5

13.3

11.7

11.2

6.5

10.6

8.9

13.4

16.2

13.7

12.3

15.3

12.9

10.7

12.6

Company

HUL

ITC

Jyothy Lab

Marico

Nestle

Page Inds

Parag Milk

Pidilite Ind.

P&G Hygiene

Prabhat Dairy

United Brew

United Spirits

Aggregate

Healthcare

Alembic Phar

Neutral

Alkem Lab

Buy

Ajanta Pharma

Buy

Aurobindo

Buy

Biocon

Neutral

Cadila

Buy

Cipla

Neutral

Divis Lab

Neutral

Dr Reddy’s

Neutral

Fortis Health

Buy

Glenmark

Neutral

Granules

Buy

GSK Pharma

Neutral

IPCA Labs

Buy

Jubilant Life

Buy

Laurus Labs

Buy

Lupin

Buy

Sanofi India

Buy

Shilpa Medicare

Buy

Strides Shasun

Buy

Sun Pharma

Buy

Torrent Pharma

Neutral

Aggregate

Infrastructure

Ashoka Buildcon

Buy

IRB Infra

Neutral

KNR Constructions Buy

Sadbhav Engineering Buy

Aggregate

Logistics

Allcargo Logistics

Buy

Concor

Neutral

Gateway Distriparks Buy

Aggregate

Media

Dish TV

Buy

D B Corp

Buy

Den Net.

Neutral

Ent.Network

Buy

Hathway Cable

Buy

Hind. Media

Buy

% Upside

CMP

EPS (INR)

EPS Gr. YoY (%)

P/E (x)

Reco

(INR) (INR)

Downside

FY18E FY19E FY20E FY18E FY19E FY20E FY18E FY19E

Buy

1321 1515

23.1 27.9 32.9 17.6 20.7 18.1 57.2 47.4

Neutral

258

278

9.0 10.2 11.4 6.6 13.7 12.4 28.8 25.4

Neutral

365

380

8.1 10.7 13.3 -27.7 32.0 24.2 45.0 34.1

Neutral

330

345

6.4

7.6

9.0

1.2 19.2 18.4 51.9 43.5

Neutral

7813 7882

140.0 159.1 192.3 13.2 13.6 20.8 55.8 49.1

Buy

21467 27490

297.1 415.7 549.8 24.5 39.9 32.2 72.3 51.6

Neutral

255

314

8.9 12.4 16.8 147.7 38.7 35.6 28.5 20.6

Buy

908

1065

17.6 20.6 23.7 5.4 17.0 14.9 51.5 44.0

Neutral

9223 9303

142.1 171.3 200.8 6.9 20.5 17.3 64.9 53.8

Not Rated 151

3.5

6.4

9.7 -2.0 83.8 52.1 43.3 23.6

Buy

962

1380

14.1 17.4 22.9 62.0 23.9 31.2 68.3 55.2

Neutral

3109 3515

32.9 57.0 78.7 22.9 73.4 38.1 94.6 54.6

9.2 18.7 17.6 44.6 37.5

531

2050

1401

550

575

388

541

1057

2103

148

539

104

2142

659

825

505

740

5107

485

683

504

1257

555

2500

1840

820

600

500

600

1100

2575

185

550

175

2500

750

1110

613

940

5600

749

989

675

1400

23.9

66.8

54.0

44.5

7.6

16.8

22.4

32.9

74.4

-0.8

30.6

6.3

49.1

21.4

47.8

19.0

32.3

141.7

13.3

14.1

13.6

48.0

25.3 30.1 10.8 5.9 19.0 22.2

88.9 109.9 -10.5 33.2 23.5 30.7

65.8 81.4 -5.8 21.9 23.6 25.9

48.7 53.6 13.2 9.4 10.1 12.4

10.9 19.8 -25.3 43.1 81.5 75.4

21.0 24.4 18.5 25.0 15.8 23.0

27.0 33.0 40.9 20.6 22.0 24.1

44.0 52.7 -17.7 33.9 19.7 32.2

113.2 145.0 2.4 52.2 28.0 28.3

2.8

7.3

LP 164.5 NM

32.9 41.1 -22.2 7.7 24.7 17.6

7.9

11.0 -12.4 25.2 38.7 16.5

54.9 61.1 42.9 11.9 11.2 43.6

29.2 37.3 33.2 36.6 27.7 30.8

62.6 72.5 29.5 30.9 15.8 17.2

29.1 35.7 7.0 52.7 22.8 26.5

40.2 54.1 -43.0 24.6 34.6 22.9

161.8 186.9 9.8 14.2 15.5 36.0

26.5 33.4 -5.0 99.2 26.1 36.4

40.8 55.7 -56.2 188.8 36.7 48.4

21.9 27.9 -48.1 61.4 27.7 37.1

61.3 78.5 -12.9 27.6 28.0 26.2

-17.5 33.1 25.2 27.4

9.5

24.6

14.0

16.0

19.1

21.3

18.2

17.4

24.8

41.2

27.1

79.9

-3.0

-17.3

14.9

101.0

-13.6

30.2

8.6

46.4

8.6

16.7

28.3

15.5

16.8

28.6

28.1

26.8

21.0

23.1

21.3

11.3

52.7

18.4

20.0

24.0

18.6

53.6

16.4

13.1

39.0

22.5

13.2

17.4

18.4

31.6

18.3

16.7

23.0

20.5

20.6

25.8

8.9

20.2

24.6

15.0

11.6

23.4

16.4

20.8

245

219

282

393

290

250

375

460

5.3

25.4

16.9

13.9

150

1200

174

223

1330

237

8.9

41.9

6.2

12.9

51.2

10.6

14.9

58.2

13.1

-9.3

10.3

-9.0

5.3

44.2

22.3

71.3

28.5

15.8

13.5

23.4

14.6

109.9

20.1

5,545

75.7

161.9

12.6

296

707

217

101

420

820

305

-8

-0.5

18.8

-2.9

8.3

-0.2

25.9

1.6

23.0

0.1

16.4

0.8

28.8

3.4

27.6 -7.6 22.0

4.0 Loss LP

28.7 -27.7 98.0

2.0 Loss LP

32.4 0.2 11.3

NM 44.8 17.8 12.7 -11.9 33.2

15.7 12.9 2.9 2.5 20.1 20.9

NM 1,378.7 2.2 2.2 -6.3 0.2

85.6 43.2 3.8 3.5 4.5 8.4

NM 49.6 2.7 2.5 -1.2 5.2

8.4

7.6

1.2 1.0 15.1 14.6

27 March 2018

Click excel icon

for detailed

valuation guide

CMP

(INR)

166

381

1225

863

586

(INR)

117

215

469

1760

130

1225

705

Valuation snapshot

Company

HT Media

Jagran Prak.

Music Broadcast

PVR

Prime Focus

Siti Net.

Sun TV

Zee Ent.

Aggregate

Metals

Hindalco

Hind. Zinc

JSPL

JSW Steel

Nalco

NMDC

SAIL

Rain Industries

Vedanta

Tata Steel

Aggregate

Oil & Gas

Aegis Logistics

BPCL

GAIL

Gujarat Gas

Gujarat St. Pet.

HPCL

IOC

IGL

Mahanagar Gas

MRPL

Oil India

ONGC

PLNG

Reliance Ind.

Aggregate

Retail

Jubilant Food

PC Jeweller

Titan Co.

Aggregate

Technology

Cyient

HCL Tech.

Hexaware

Infosys

KPIT Tech

L&T Infotech

Mindtree

Mphasis

NIIT Tech

Persistent Sys

Tata Elxsi

TCS

Reco

Neutral

Buy

Neutral

Buy

% Upside

EPS (INR)

EPS Gr. YoY (%)

P/E (x)

P/B (x)

ROE (%)

Downside

FY18E FY19E FY20E FY18E FY19E FY20E FY18E FY19E FY18E FY19E FY18E FY19E

11.8

10.4

8.2

22.1

2.5

-0.9

27.7

13.7

12.1

13.1

13.5

37.3

5.8

0.1

35.8

17.6

12.7 59.3 2.6 4.9

16.0 -2.3 26.4 21.5

17.8 27.8 64.9 31.4

51.5 7.8 68.7 37.9

7.9 100.6 137.5 36.4

0.6 Loss LP 411.6

42.5 11.6 29.1 18.7

21.0 2.1 28.7 19.3

12.1 43.8 28.1

7.2

7.0

16.0 12.6

46.3 28.1

55.4 32.8

35.3 14.9

NM 121.1

31.1 24.1

42.8 33.3

35.8 24.9

7.8

9.1

29.9

12.2

13.2

8.7

16.5

9.2

6.8

8.4

8.7

26.1

10.2

13.1

25.2

13.7

10.6

9.5

25.5

18.0

9.6

8.4

7.7

14.1

13.5

11.0

59.6

16.4

59.0

43.9

16.4

15.0

20.3

16.3

16.5

18.0

18.9

16.5

17.3

14.7

22.4

19.1

0.8

2.6

3.6

5.4

3.6

2.9

7.8

7.2

5.0

1.4

6.2

0.7

2.6

1.3

1.6

0.8

3.2

1.8

1.5

1.7

11.0

2.4

1.8

6.1

2.0

2.3

1.4

5.8

4.6

1.7

0.9

1.0

3.5

1.8

1.6

0.7 11.5 10.6

2.3 15.3 18.4

3.2 8.2 12.2

4.7 10.2 15.3

2.3 11.6 18.9

2.9 -15.8 2.4

7.1 26.1 30.9

6.2 18.2 20.0

4.3 14.0 17.4

1.2

4.3

0.7

2.2

1.3

1.4

0.8

2.4

1.6

1.3

1.5

8.3

2.1

1.6

5.1

1.8

2.0

1.3

4.9

4.2

1.5

0.9

1.0

3.0

1.6

1.5

14.0

35.3

-3.6

20.2

-0.9

18.4

-1.0

24.7

15.1

15.9

12.3

31.6

22.7

11.3

16.1

15.0

24.9

17.3

20.8

28.0

20.2

7.1

10.0

23.9

12.8

12.9

16.8

55.7

2.3

19.5

9.8

17.3

4.8

29.8

25.4

16.3

16.8

36.3

21.8

12.8

22.0

14.0

20.2

14.4

20.8

24.4

16.2

10.5

12.8

22.9

12.7

13.2

Buy

Neutral

Buy

Neutral

Buy

Sell

Buy

Neutral

211

303

217

294

122

372

283

582

344

342

361

339

215

480

416

778

-1

19.5

21.6

-11.5

20.7

-0.5

13.7

-0.9

25.6

23.8

57.7

27.0

33.3

7.3

24.0

5.1

14.0

4.3

40.6

41.7

69.4

27.9 127.9 38.6 3.0 10.8

32.1 9.6 54.6 -3.8 14.0

11.9 Loss LP 63.4 NM

23.7 39.8 15.9 -1.0 14.2

5.3

2.6 NM

14.7 37.6 2.2 4.7 8.9

6.5 Loss LP 50.2 NM

44.6 165.9 58.6 9.8 14.5

43.4 57.4 74.8 4.2 11.9

61.5 51.9 20.4 -11.5 10.1

66.7 55.4 1.7 13.5

12.5

45.8

33.8

42.3

13.9

36.4

21.2

12.5

54.6

12.2

42.2

24.3

18.9

74.3

80.4

-22.0

17.4

28.2

43.8

-14.7

-7.7

7.4

27.0

-15.0

-22.6

7.1

24.3

19.6

3.5

50.1

9.2

22.0

59.6

4.9

-9.4

17.2

-3.6

-7.7

56.7

32.5

13.4

10.3

11.9

28.0

11.3

4.6

28.7

4.5

15.8

21.1

13.2

1.2

5.0

3.3

4.1

17.9

11.6

10.6

39.2

11.1

16.0

40.2

14.4

9.6

8.6

29.9

17.3

8.9

13.1

10.2

16.0

14.9

12.3

77.2

20.7

74.9

55.9

18.4

15.6

22.5

17.9

18.3

20.4

23.6

18.9

20.2

18.1

26.6

21.5

Buy

Sell

Buy

Neutral

Buy

Neutral

Buy

254

419

425

828

183

333

167

283

969

111

342

179

226

901

303

549

388

1014

191

530

257

416

1228

114

425

230

318

1111

-9

6.5

37.7

26.5

20.6

12.7

34.7

19.3

9.4

55.9

12.6

26.1

17.6

14.1

60.4

9.7

41.2

32.3

32.9

13.3

31.5

17.5

11.1

53.9

11.6

40.9

23.3

16.0

66.6

Neutral

Buy

2343

320

938

2185

685

990

-7

114

30.3

15.4

12.5

39.3

19.5

15.9

51.6 186.2 29.6 31.3

24.9 44.4 26.6 27.6

19.8 38.8 27.0 24.1

48.6 27.2 26.0

18.1

3.1

21.2

2.6

0.8

18.5

31.5

12.9

17.4

14.4

30.8

-2.1

12.1

3.8

10.9

9.7

10.5

13.7

24.6

14.8

16.9

22.8

18.4

12.8

13.2

7.5

13.4

11.2

29.1

15.2

17.2

8.3

16.2

14.3

18.2

9.3

17.4 17.7 22.5 29.8

3.3 2.8 16.9 18.4

15.9 14.7 23.4 25.9

10.7 9.7 19.2 22.2

3.2

3.8

5.7

4.2

2.5

5.8

4.9

3.2

3.1

8.5

6.7

2.9

3.4

4.9

3.6

2.1

4.7

4.3

2.9

6.8

5.8

17.4

25.1

26.9

24.3

14.3

32.1

19.9

15.3

16.1

17.8

36.0

30.4

17.8

23.9

25.8

23.1

13.8

29.0

24.0

18.7

17.6

21.0

33.8

32.9

Buy

Neutral

Buy

Neutral

Buy

Neutral

Buy

Neutral

666

963

373

1154

220

1342

771

830

901

780

978

2813

675

950

340

1250

219

1400

725

800

900

1236

2700

-1

-9

-6

-4

-11

-4

36.2

61.7

16.6

64.4

12.0

65.7

32.7

43.9

44.6

43.1

36.8

130.6

40.6 45.9

64.1 68.9

18.4 20.9

70.7 78.6

13.3 17.2

74.7 86.1

40.8 47.8

50.4 54.6

52.2 60.6

53.0 60.5

43.6 51.5

147.3 161.0

27 March 2018

Click excel icon

for detailed

valuation guide

CMP

(INR)

619

274

893

(INR)

700

300

1100

Valuation snapshot

Company

Tech Mah

Wipro

Zensar Tech

Aggregate

Telecom

Bharti Airtel

Bharti Infratel

Idea Cellular

Tata Comm

Aggregate

Utiltites

Coal India

CESC

JSW Energy

NHPC

NTPC

Power Grid

Tata Power

Aggregate

Others

Arvind

Avenue Supermarts

Bata India

BSE

Castrol India

Coromandel Intl

Delta Corp

Eveready Inds.

Interglobe

Indo Count

Info Edge

Kaveri Seed

Manpasand

MCX

Monsanto

Navneet Education

Oberoi Realty

Quess Corp

PI Inds.

Piramal Enterp.

SRF

S H Kelkar

Team Lease Serv.

Trident

TTK Prestige

UPL

Reco

Buy

Neutral

Buy

% Upside

EPS (INR)

EPS Gr. YoY (%)

P/E (x)

P/B (x)

ROE (%)

Downside

FY18E FY19E FY20E FY18E FY19E FY20E FY18E FY19E FY18E FY19E FY18E FY19E

39.2

17.9

54.2

40.9

18.4

64.1

47.7

21.1

85.2

26.8 4.5 16.6

6.0 2.5 14.6

4.0 18.3 33.1

4.2 5.0 11.1

15.8

15.3

16.5

18.7

15.1

14.9

13.9

17.8

108.0

21.1

53.4

-1,566

10.2

10.0

20.3

8.6

11.5

9.5

11.0

10.3

27.5

77.7

38.6

16.1

30.5

17.7

34.8

21.8

16.7

8.5

45.7

11.9

27.7

23.5

20.8

14.8

9.9

32.2

24.3

20.7

18.7

26.6

35.4

6.6

35.3

15.4

3.1

2.7

2.4

4.7

2.7

2.3

2.2

4.1

20.6

17.2

15.7

25.0

19.5

16.6

16.4

23.0

2.3

20.4

-20.9

21.2

-0.2

60.8

10.4

5.5

10.8

11.3

17.5

14.5

17.3

Buy

Neutral

Buy

422

343

620

680

380

110

750

3.5

3.9

14.0 16.2

-10.7 -11.6

2.4 11.6

7.2 -68.7 12.2 84.4 121.1

17.8 -6.1 16.5 9.7 24.6

-9.7 Loss Loss Loss NM

23.6 -75.8 383.2 102.9 257.9

PL Loss LP -441.7

31.1

103.2

4.0

3.2

16.2

21.3

7.9

23.8

71.1

11.4

-18.1

7.5

20.7

-5.8

14.5

-8.4

63.6

17.8

2.0

2.9

45.1

93.7

-8.7

48.2

-42.2

49.0

79.5

41.6

-16.0

21.9

3.6

22.3

124.2

-12.2

14.5

-3.5

9.1

11.6

8.4

4.4

8.9

44.9

7.3

-15.4

28.5

15.1

20.9

49.0

26.3

23.8

37.4

21.0

8.7

-5.9

20.4

40.7

42.5

19.3

32.0

12.5

18.5

47.2

41.1

20.6

28.4

253.5

47.7

20.6

40.0

24.2

22.4

37.5

28.1

27.8

9.7

16.2

8.4

10.7

3.1

9.5

4.6

8.6

10.3

34.1

33.4

16.6

8.6

4.3

4.5

34.0

24.1

44.4

17.7

27.1

17.0

35.6

18.5

18.4

17.6

-3.5

27.3

16.4

27.1

32.1

26.6

47.9

25.8

15.4

17.9

14.8

10.7

17.1

11.1

13.2

11.5

16.4

13.0

34.0

106.7

46.7

17.5

28.7

21.4

49.0

31.0

19.9

11.2

51.4

14.1

40.8

33.1

25.0

19.0

35.0

47.5

29.3

29.0

23.2

32.6

48.7

8.4

45.0

16.9

2.5 2.4 2.1

4.3 4.3 17.0

1.3 1.6 -18.1

12.7 10.2 4.6

2.5 2.6 -0.6

6.6

1.1

0.9

1.3

1.8

1.7

1.9

6.2

1.0

1.1

0.9

1.3

1.6

1.5

1.8

44.7

10.6

6.7

8.5

10.5

16.5

10.8

14.8

Buy

Sell

Buy

Sell

273

954

170

195

401

1408

210

282

-17

-7

18.5

88.8

4.3

2.4

12.9

16.9

4.9

26.8

95.2

3.6

3.1

14.8

20.4

7.3

Neutral

Sell

Neutral

Buy

Neutral

Buy

Neutral

Buy

386

1339

743

733

201

515

290

364

1276

1200

481

367

690

2630

144

477

1051

861

2408

1922

257

2109

6209

725

402

920

578

950

242

523

382

458

1307

117

1550

664

467

1100

3293

194

608

1300

988

3500

2040

318

2700

114

5281

945

-31

-22

-15

11.3

12.6

15.9

41.8

7.0

24.1

5.9

11.7

64.0

7.5

23.4

34.2

9.0

20.8

105.0

7.6

13.6

22.1

29.3

83.1

82.9

7.9

43.3

7.2

137.8

43.0

14.1

17.2

19.3

45.5

6.6

29.0

8.3

16.7

76.4

9.9

26.3

40.6

13.2

29.4

126.6

9.7

48.2

32.7

35.4

116.4

103.0

9.7

59.6

9.2

176.1

47.2

18.8

23.0

22.4

49.4

6.9

30.3

11.2

20.8

110.4

11.7

33.4

47.4

17.9

34.9

149.9

11.4

46.5

41.6

41.2

147.9

136.0

12.2

88.1

11.6

203.2

55.6

2.7 2.5 8.0 9.4

19.0 16.3 19.0 22.6

6.4 5.7 14.6 15.7

1.5 1.2 8.5 7.4

19.5 18.3 69.1 61.8

4.5 3.9 22.5 23.4

4.9 4.4 12.6 13.2

7.8 6.3 27.1 32.0

7.3 6.8 46.8 42.1

1.6 1.3 16.0 17.4

6.8 6.1 13.7 14.0

3.5 3.0 23.4 27.1

3.4 3.1 7.4 11.8

2.7 2.5 7.9 11.0

7.7 6.7 32.5 34.5

4.3 3.7 23.9 26.9

2.7 2.2 7.8 24.2

5.9 4.7 21.7 21.0

6.1 5.1 22.6 22.9

2.2 2.0 8.9 10.2

3.2 2.8 14.1 15.9

4.2 3.8 13.4 14.9

7.9 6.5 17.7 20.1

1.0 0.9 12.6 14.5

7.7 6.9 18.0 20.7

4.0 3.3 26.3 23.6

27 March 2018

MOSL Universe stock performance

Company

Automobiles

Amara Raja

Ashok Ley.

Bajaj Auto

Bharat Forge

Bosch

CEAT

Eicher Mot.

Endurance Tech.

Escorts

Exide Ind

Hero Moto

M&M

Mahindra CIE

Maruti Suzuki

Motherson Sumi

Tata Motors

TVS Motor

Banks - Private

AU Small Fin. Bank

Axis Bank

DCB Bank

Equitas Hold.

Federal Bank

HDFC Bank

ICICI Bank

IDFC Bank

IndusInd

J&K Bank

Kotak Mah. Bk

RBL Bank

South Indian

Yes Bank

Banks - PSU

BOB

BOI

Canara

Indian Bk

PNB

SBI

Union Bk

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

M&M Fin.

Muthoot Fin

1 Day (%)

2.1

1.5

1.8

1.4

-0.1

1.9

-0.3

2.0

1.6

3.0

1.9

2.0

0.3

1.9

3.2

0.3

1.7

2.8

1.3

1.9

0.2

1.0

2.9

2.0

-0.5

0.6

0.0

0.1

0.7

3.1

5.7

6.2

4.7

10.2

4.1

2.8

5.0

4.8

-0.8

3.6

0.2

2.6

1.6

1.2

2.7

1.7

0.4

1.5

5.0

2.7

0.6

1M (%)

-3.9

5.3

-5.6

-8.9

-9.3

-9.7

2.4

-8.0

-8.9

5.5

-1.7

1.7

-10.1

-2.5

-3.6

-10.8

-8.8

-0.1

-8.1

-2.6

-3.7

-5.1

-0.9

-13.9

-9.2

4.1

-14.1

-6.0

-14.2

-6.9

-1.7

-19.9

-13.0

-9.7

-14.4

-10.3

-15.4

-10.5

4.2

-8.4

-1.0

-13.6

-0.7

-0.6

-6.8

-7.0

-7.2

5.2

-2.0

-1.3

12M (%)

-10.4

65.1

-0.3

37.8

-24.6

10.4

14.3

64.1

53.1

3.5

3.1

17.2

3.7

46.1

29.4

-29.4

44.8

Company

MAS Financial Serv.

PNB Housing

Repco Home

Shriram City Union

Shriram Trans.

Capital Goods

ABB

Bharat Elec.

BHEL

Blue Star

CG Cons. Elec.

CG Power & Inds Sol.

Cummins

Engineers India

GE T&D

Havells

K E C Intl

L&T

Siemens

Solar Ind

Thermax

Va Tech Wab.

Voltas

Cement

Ambuja Cem.

ACC

Birla Corp.

Dalmia Bharat

Grasim Inds.

India Cem

J K Cements

JK Lakshmi Ce

Ramco Cem

Orient Cem

Prism Cem

Sagar Cements

Sanghi Inds.

Shree Cem

Ultratech

Consumer

Asian Paints

Britannia

Colgate

Dabur

Emami

Future Consumer

Godrej Cons.

GSK Cons.

HUL

ITC

Jyothy Lab

Marico

Nestle

Page Inds

Parag Milk

1 Day (%)

-1.2

3.7

-0.3

4.5

1.9

0.4

2.1

1.3

2.9

-2.9

2.8

0.5

4.3

1.1

0.4

0.3

2.2

0.5

1.8

-0.5

1.5

1.9

1.8

0.2

-1.7

3.7

0.0

2.3

-1.7

1.5

0.9

-1.7

4.3

-1.4

2.3

1.5

1.8

1.0

0.2

0.8

-0.9

0.9

2.3

0.9

1.8

1.6

0.6

1.9

1.4

0.2

5.0

0.6

1M (%)

-5.4

-3.6

-2.9

8.6

5.0

-15.2

-8.0

-11.7

3.3

0.7

-7.5

-10.4

-10.0

-5.4

-3.9

-9.9

-3.3

-6.3

-0.7

-1.1

-11.6

0.2

-11.9

-7.9

-23.5

5.5

-8.6

-12.0

-1.5

4.7

0.9

-15.8

-11.2

-10.5

-6.9

-4.1

-4.7

1.1

-2.2

-1.1

-4.9

-3.0

-12.2

3.7

-3.7

-1.0

-3.2

4.8

7.7

2.6

-3.7

-11.7

12M (%)

6.8

-18.4

2.6

37.6

7.7

0.9

-26.1

25.6

18.1

-1.2

-20.3

6.4

23.4

10.4

85.1

25.2

-11.5

38.1

26.8

-25.9

58.0

0.3

9.8

0.1

49.4

22.0

-10.6

12.9

5.5

14.7

6.6

15.0

12.9

57.4

0.0

-0.6

5.0

47.1

6.5

12.0

3.6

87.9

32.3

25.0

46.8

-8.2

3.4

13.2

23.3

46.5

13.2

3.7

-2.0

-10.5

2.0

32.9

12.7

-22.1

26.7

-22.1

18.3

-5.7

14.5

-0.9

-16.4

-23.3

-8.0

11.4

-32.2

-10.8

-40.9

47.6

-13.5

43.3

38.9

44.0

25.3

25.9

29.0

-9.3

36.7

9.8

27 March 2018

MOSL Universe stock performance

Company

Pidilite Ind.

P&G Hygiene

Prabhat Dairy

United Brew

United Spirits

Healthcare

Alembic Phar

Alkem Lab

Ajanta Pharma

Aurobindo

Biocon

Cadila

Cipla

Divis Lab

Dr Reddy’s

Fortis Health

Glenmark

Granules

GSK Pharma

IPCA Labs

Jubilant Life

Lupin

Laurus Labs

Sanofi India

Shilpa Medicare

Strides Shasun

Sun Pharma

Torrent Pharma

Infrastructure

Ashoka Buildcon

IRB Infra.Devl.

KNR Construct.

Sadbhav Engg.

Logistics

Allcargo Logistics

Concor

Gateway Distriparks

Media

Dish TV

D B Corp

Den Net.

Ent.Network

Hathway Cab.

Hind. Media

HT Media

Jagran Prak.

Music Broadcast

PVR

Prime Focus

Siti Net.

Sun TV

Zee Ent.

Metals

Hindalco

Hind. Zinc

1 Day (%)

0.7

0.2

2.0

0.9

-0.6

-1.5

3.1

-0.1

0.6

4.8

0.6

2.1

1.4

3.0

0.6

1.0

-1.5

-0.3

1.3

0.6

-0.5

1.8

-0.1

-0.5

0.3

0.5

3.1

1.5

-2.3

2.5

1.3

-0.9

0.6

2.6

1.4

12.1

3.7

11.7

-1.8

2.6

0.5

0.0

-0.4

1.9

-5.0

3.8

2.8

2.4

0.8

1M (%)

1.8

-1.0

-14.0

-11.1

-4.2

-6.9

-7.1

-1.9

-10.6

-8.3

-4.7

-8.5

2.0

-4.1

-7.5

0.4

-12.6

-10.7

-2.3

-6.1

-9.9

-3.1

4.0

5.9

-3.9

-9.5

-6.5

9.8

-3.3

-7.0

-1.7

-16.0

-9.7

-15.3

-2.2

-9.4

-5.7

-0.4

-1.0

-8.4

-9.6

-0.9

0.3

-10.2

-15.6

-20.1

-9.0

0.0

-14.3

-8.7

12M (%)

31.7

32.7

26.2

24.3

39.6

-11.8

-7.3

-23.3

-20.1

51.0

-13.1

-8.8

69.7

-19.8

-16.5

-39.2

-23.9

-22.2

12.3

5.6

-50.1

-1.0

9.8

-23.7

-40.0

-28.4

-10.9

30.9

-6.9

55.5

27.5

-10.0

19.8

-31.7

-32.9

-22.0

21.1

-14.4

-1.7

-23.7

3.7

-5.0

6.0

-14.1

9.4

-59.7

14.3

13.1

8.5

-6.2

Company

JSPL

JSW Steel

Nalco

NMDC

Rain Industries

SAIL

Vedanta

Tata Steel

Oil & Gas

Aegis Logistics

BPCL

GAIL

Gujarat Gas

Gujarat St. Pet.

HPCL

IOC

IGL

Mahanagar Gas

MRPL

Oil India

ONGC

PLNG

Reliance Ind.

Retail

Jubilant Food

PC Jeweller

Titan Co.

Technology

Cyient

HCL Tech.

Hexaware

Infosys

KPIT Tech

L&T Infotech

Mindtree

Mphasis

NIIT Tech

Persistent Sys

Tata Elxsi

TCS

Tech Mah

Wipro

Zensar Tech

Telecom

Bharti Airtel

Bharti Infratel

Idea Cellular

Tata Comm

Utiltites

Coal India

CESC

JSW Energy

NHPC Ltd

NTPC

Power Grid

1 Day (%)

1.4

2.7

1.4

1.6

-0.4

3.8

2.4

2.8

2.4

1.4

-3.1

-0.3

0.5

-1.8

-1.0

-0.1

0.6

0.8

-2.2

0.8

-2.7

0.9

2.8

-2.5

4.9

0.9

0.7

-0.8

-1.1

-0.6

-0.2

-1.4

0.7

0.4

-0.6

1.3

-0.1

-0.7

-4.0

-1.5

2.6

0.2

3.3

0.3

1.4

8.1

1.8

1.5

0.0

0.2

1M (%)

-19.0

-7.1

-1.0

-7.4

-5.8

-17.4

-17.3

-14.4

0.5

-3.2

-8.3

-3.8

-9.2

-15.0

-11.3

-4.9

-7.7

-2.1

-6.3

-7.1

-4.0

16.9

-4.2

14.5

4.7

2.1

8.1

1.2

5.4

-6.5

-3.8

-5.9

8.3

-10.0

-6.5

-7.3

1.1

-6.2

0.4

-0.2

-0.5

-2.4

-13.1

-6.3

-10.6

-3.6

4.4

-0.5

12M (%)

81.0

57.2

-10.1

-10.9

273.4

14.6

6.1

25.3

25.2

-3.2

11.4

12.7

14.9

-3.6

-10.4

40.5

9.3

2.7

-7.0

14.0

40.1

116.8

56.0

109.5

40.9

10.5

69.1

11.9

66.1

94.8

64.4

37.6

114.1

29.4

30.4

15.9

30.6

6.9

-2.6

23.9

10.5

-11.7

-15.1

-8.4

15.2

18.4

-12.4

3.6

0.5

27 March 2018

MOSL Universe stock performance

Company

Others

Arvind

Avenue Super.

Bata India

BSE

Castrol India

Coromandel Intl

Delta Corp

Eveready Inds.

Interglobe

Indo Count

Info Edge

Kaveri Seed

Manpasand

MCX

Monsanto

Navneet Educat.

Oberoi Realty

PI Inds.

Piramal Enterp.

Quess Corp

SRF

S H Kelkar

Team Lease Serv.

Trident

UPL

V-Guard

1 Day (%)

1.8

4.5

4.9

-0.7

1.0

-0.6

1.4

1.3

2.3

-3.2

-2.6

0.6

-0.2

-2.4

1.6

2.7

0.9

2.5

0.4

-0.5

0.6

2.7

-0.5

-0.2

2.9

2.1

1M (%)

-7.0

3.8

2.1

-9.1

1.5

-5.1

-21.2

-5.0

-4.7

-17.1

-1.8

-4.3

-4.9

-8.7

4.0

1.5

-14.8

-4.0

-8.9

5.0

-0.2

-7.4

0.8

-16.7

0.6

-3.2

12M (%)

-1.2

117.4

37.7

-22.5

-3.9

62.6

63.8

46.2

25.0

-58.6

45.9

-14.0

2.3

-43.2

5.2

3.7

25.5

0.7

30.3

52.6

20.7

-15.6

121.2

-29.8

0.4

33.7

27 March 2018

THEMATIC/STRATEGY RESEARCH GALLERY

REPORT GALLERY

RECENT INITIATING COVERAGE REPORTS

DIFFERENTIATED PRODUCT GALLERY

NOTES

27 March 2018

Explanation of Investment Rating

Investment Rating

BUY

SELL

NEUTRAL

UNDER REVIEW

NOT RATED

Expected return (over 12-month)

>=15%

< - 10%

> - 10 % to 15%

Rating may undergo a change

We have forward looking estimates for the stock but we refrain from assigning recommendation

*In case the recommendation given by the Research Analyst becomes inconsistent with the investment rating legend, the Research Analyst shall within 28 days of the inconsistency, take appropriate measures to make the recommendation consistent with the investment rating legend.

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views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval.

MOSL, its associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform

investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and independent of each other. The recipient should take this

into account before interpreting the document. This report has been prepared on the basis of information that is already available in publicly accessible media or developed through analysis of MOSL. The views expressed are those of the analyst, and

the Company may or may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or

published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such

distribution, publication, availability or use would be contrary to law, regulation or which would subject MOSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all

jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees, agents or representatives shall

be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information.

The person accessing this information specifically agrees

to exempt MOSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSL

or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays.

Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring Centre, 2nd Floor, Palm

Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id:

na@motilaloswal.com,

Contact No.:022-38281085.

Registration details of group entities.: MOSL: SEBI Registration: INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser:

INA000007100.IRDA Corporate Agent-CA0541. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS

(Registration No.: INP000004409) offers wealth management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers

Commodities Products. * Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products

13 December 2016