12 September 2017
Market snapshot
Equities - India
Close
Chg .%
Sensex
31,882
0.6
Nifty-50
10,006
0.7
Nifty-M 100
18,735
0.9
Equities-Global
Close
Chg .%
S&P 500
2,488
1.1
Nasdaq
6,432
1.1
FTSE 100
7,414
0.5
DAX
12,475
1.4
Hang Seng
11,221
0.6
Nikkei 225
19,546
1.4
Commodities
Close
Chg .%
Brent (US$/Bbl)
54
0.3
Gold ($/OZ)
1,327
-1.4
Cu (US$/MT)
6,729
0.9
Almn (US$/MT)
2,091
1.0
Currency
Close
Chg .%
USD/INR
64.0
0.2
USD/EUR
1.2
-0.2
USD/JPY
110.3
0.1
YIELD (%)
Close
1MChg
10 Yrs G-Sec
6.6
0.0
10 Yrs AAA Corp
7.5
0.0
Flows (USD b)
11-Sep
MTD
FIIs
-0.1
-0.6
DIIs
0.1
0.4
Volumes (INRb)
11-Sep
MTD*
Cash
296
296
F&O
4,827
4,830
Note: YTD is calendar year, *Avg
YTD.%
19.7
22.2
30.5
YTD.%
11.1
19.5
3.8
8.7
19.4
2.3
YTD.%
-3.0
15.2
21.8
22.7
YTD.%
-5.7
12.8
-5.7
YTDchg
0.0
-0.1
YTD
6.2
7.0
YTD*
290
5,274
Today’s top research idea
TATA Motors: JLR – new products to drive volumes, Fx to drive
margins; India business to breakeven in FY18
v
JLR is expected to outperform industry, with ~10% growth in FY18 retails (v/s
+4% in FY18 YTD), driven by new launches.
v
Fx hedge losses are expected to start moderating substantially from 4QFY18.
Based on the current spot rates, hedge losses for FY19 would be negligible.
JLR would now hedge up to 65% of net Fx exposure (v/s up to 85% earlier).
v
JLR’s FY18 EBIT margin is expected to be 6% (v/s 1.2% for 1QFY18), driven by
moderating incentives from 4QFY18, operating leverage, and favorable Fx. It
expects medium-term EBIT margin of 8-10% (in-line).
v
For standalone business, it targets cost savings of ~INR15b in FY18, driving
PAT breakeven in FY18 (v/s our est. of net loss of ~INR15.2b).
Research covered
Cos/Sector
IndusInd Bank
Tata Motors
Bharat Electronics
FoE - Economy
Key Highlights
IIB+BAHFIN = Most profitable universal bank
JLR: New products to drive volumes, Fx to drive margins
Capex of INR25b to capture future growth opportunities
Total savings to be lower in FY17 despite higher financial savings
Piping hot news
Govt mulls Rs10 trillion public financing for infrastructure projects
v
With bank credit drying up for large infrastructure projects, the National
Democratic Alliance (NDA) government is exploring a plan to raise Rs10 trillion
from retirees and provident fund beneficiaries, said transport minister Nitin
Gadkari.
Household financial savings and liabilities
% of GDP
Gross financial savings
Currency
Deposits*
Insurance, provident & pension funds
Claims on government
Shares & debentures
Financial liabilities
Net financial savings
Chart of the Day: Fuel or Engines (Economy: Total savings to be lower in FY17
despite higher financial savings)
FY12
10.7
1.2
6.3
3.3
(0.3)
0.2
3.3
7.4
FY13
10.7
1.1
6.4
3.3
(0.2)
0.2
3.3
7.4
FY14
10.6
0.9
6.1
3.3
0.2
0.2
3.2
7.4
FY15
10.4
1.1
5.2
3.9
0.0
0.2
3.0
7.4
FY16
11.2
1.4
5.2
3.9
0.5
0.3
3.2
8.0
FY17
12.0
-2.2
7.8
4.8
0.5
1.2
3.8
8.2
* Include bank deposits, non-bank deposits and (net) trade debt
Source: RBI, Central Statistics office (CSO),
MOSL Please note the data differ from the that in RBI’s annual report because RBI has provided data as % of GNDI not GDP
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
August inflation seen at 5-
month high on rising food
costs
Retail inflation is expected to have
picked up to a five-month high in
August, largely driven by higher
food costs, a Reuters poll showed,
easing pressure on the central
bank to cut interest rates again
after poor growth data…
2
Tata Steel UK severs links with British Steel Pension Scheme
Tata Steel today announced that it has concluded a new agreement under
which its UK business stands separated from the 15-billion pound British
Steel Pension Scheme (BSPS). “Tata Steel UK has received confirmation
from the pensions regulator that it has approved a regulated
apportionment arrangement (RAA) in respect of BSPS,” Tata Steel said in a
statement here…
3
Sebi panel recommends easing
block deal framework
An expert committee of the
Securities and Exchange Board of
India (Sebi) has recommended
easing the ‘block deal’ framework.
The Secondary Market Advisory
Committee (SMAC) is in favour of
extending the block deal window
and allowing better flexibility in
terms of pricing of deals…
4
Reliance Jio blasts Bharti Airtel
over IUC, says rival telco hiding
facts over ill-gotten profits
Reliance Jio today alleged that
Airtel misrepresented facts
purposefully to create a smoke-
screen and hide its ill-gotten
profits to support its false claim of
loss from call connection charges…
5
Sales of cars, SUVs, two-wheelers
and commercial vehicles
registered a strong uptick last
month with several consumers
advancing purchases on reports of
government’s plan to increase
cess, good monsoons lifting
consumer sentiments in rural
areas, and government spending
on infrastructure projects…
Strong sales growth in August:
Auto companies make hay in
days of cess and rain
6
Government to revisit stent
price control in February
Global stent makers seeking
higher prices for their new
products in India or exemption
from price control may have to
wait until February for relief…
7
Thyssenkrupp AG could reach an
in principle agreement this month
to merge its European steel
business with that of Tata Steel
Ltd, the German group said on
Monday, adding talks were
constructive and had entered the
final stretch…
Thyssenkrupp says Tata Steel
Europe merger deal may come
in September
12 September 2017
2

IndusInd Bank
BSE SENSEX
31,882
S&P CNX
10,006
12 September 2017
Update
| Sector:
Financials
CMP: INR1,769
IIB+BAHFIN = Most profitable universal bank
Under Review
BAFIN: Removes political and regulatory risk; scale benefits to accelerate
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
M.Cap. (INR b)
M.Cap. (USD b)
Avg Val, INRm
Free float (%)
Financials Snapshot (INR b)
2017 2018E
Y/E Mar
NII
OP
NP
NIM (%)
EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
RoE (%)
RoA (%)
P/E (X)
P/BV (X)
60.6
54.5
28.7
4.2
47.9
24.8
332
15.4
1.8
34.6
5.0
75.3
67.5
37.0
4.3
61.9
29.1
383
17.3
1.9
26.8
4.3
IIB IN
598
1803 / 1038
8/24/37
1053
16.5
1589
85.0
After months of speculations, IndusInd Bank (IIB) and Bharat Financial Inclusion (BHAFIN)
have announced the signing of an exclusivity agreement to explore the possibility of a
merger/partnership. As highlighted in our previous
report,
the merger can prove to be a
win-win for both entities, helping a) IIB to consolidate its position as the most profitable
universal bank in India, with sustainable RoA of 2%+ and b) BHAFIN to remove the
political/regulatory overhang, led by balance sheet diversification. Besides, the pros
related to the merger outpace the cons, in our view. While we remain positive on the
merger, the rich valuations and the pending clarity on the swap ratio/regulator view
prompt us to put IIB’s rating/target price under review.
2019E
94.0
83.5
45.9
4.4
76.8
24.1
446.4
18.5
1.9
21.6
3.7
Transition toward a sustainable 2%+ RoA bank
The key benefits to IIB from the merger include creation of a diversified and
granular retail loan book, improvement in RoAs (we estimate ~20bp accretion
without merger synergies),
a strong PSL book (generating opportunities for fee
income via PSLC), cross-sell opportunities, strong knowledge of the local economy,
and scale benefits from BHAFIN with a customer base of 5.2m (which can be used to
scale up the deposit base further). PPoP to average assets is ~6% for BHAFIN and
~3.5% for IIB. Furthermore, capitalization of BHAFIN is very high, with a CAR of
~32% (leverage of just ~4.6x).
BHAFIN – RoEs higher under banking set-up; removes political risk
Under a banking set-up, BHAFIN can generate higher RoEs due to a) elimination of
the need to carry excess liquidity (negative carry), which is required in day-to-day
operations and first loss margins for off-balance sheet, b) lower cost of funds
(difference of ~400bp between IIB and BHAFIN; cost of funds to decline for
BHAFIN
by ~100bp post-merger), c) no cap on spreads, d) higher leverage (10x v/s 5x
currently) and e) removal of political and regulatory overhang, helped by a
diversified balance sheet. In our view, these benefits should more than compensate
for the negative carry of CRR and SLR on the expanded balance sheet for IIB.
Shareholding pattern (%)
As On
Jun-17 Mar-17 Jun-16
Promoter
DII
FII
Others
15.0
12.7
53.9
18.4
15.0
12.3
54.2
18.6
14.9
11.8
54.3
19.0
FII Includes depository receipts
Stock Performance (1-year)
IndusInd Bank
Sensex - Rebased
1,930
1,730
1,530
1,330
1,130
930
Granularity of loan book to increase
IIB targets to diversify its loan mix, with a retail: corporate mix of 50:50 (from 40:60
now). Within retail, it plans to increase the share of non-vehicle loans to 50% (from
74% as of now). Additionally, the bank intends to increase the size of its MFI book
from ~INR30b currently to ~INR100b. The merger with BHAFIN, if successful, will
add ~6.6% to IIB’s existing loans and ~6% to its balance sheet. Post-merger, the
share of retail will increase to ~47%. Also, the potential acquisition of BHAFIN will
bring along a strong salesforce network and supporting technology infrastructure.
12 September 2017
3

Significant synergy benefits
Assuming IIB acquires BHAFIN at a 10% premium to CMP (i.e. INR1,064 per share),
the swap ratio would be 0.6 (0.6 shares of IIB for 1 share of BHAFIN). This would
result in negligible 0.6% EPS dilution to equity shareholders of IIB (merged entity).
However, given the strong multiple that IIB trades at, this acquisition will not impact
BVPS significantly. BVPS (FY19) is likely to be INR447 (similar to pre-merger levels).
Additionally, with the acquisition, RoA is likely to be 2%+, and IIB should enjoy the
highest RoA among peers. We have not build in cost synergies – (1) NIM could be
better than expected and (2) operating leverage benefit for the bank, which could
improve RoAs further.
Ratings under review
We are positive on the merger; however, the rich valuations and the pending clarity
over the swap ratio/regulator view prompt us to put our rating/target price for IIB
under review. The share price of BHAFIN will largely track that of IIB now.
IIB/BHAFIN trades at 3.7x/3.2x September 2019E BV. Post-merger, we expect
consolidated RoAs/RoEs to be 2.1%/19.0%. The deal is also expected to improve the
CET I ratio to ~15.5 from 14% currently.
Exhibit 1:
BV dilution to be low even if merger happens at a premium
CMP
SKS Price for merger
IIB Price
Swap Ratio
Shares to be issued
% dilution (merged entity)
FY18 BV
FY19 BV
Dilution of BV
FY18 BV
FY19 BV
967
1,769
1.83
75.4
12.6
385
452
0.5
1.3
0%
967
1,769
1.83
75.4
13.9
385
447
0.5
0.1
Premium to CMP
10%
15%
1,064
1,122
1,769
1,769
1.66
1.59
83
86.8
14.5
15.1
381
379
445
442
-0.6
-0.4
-1.2
-1.0
20%
1,160
1,769
1.52
90.5
15.8
376
440
-1.7
-1.5
Source: MOSL, Company
12 September 2017
4

Tata Motors
BSE SENSEX
31,882
S&P CNX
10,006
11 September 2017
Update
| Sector:
Automobiles
CMP: INR375
TP: INR542(+45%)
Buy
JLR: New products to drive volumes, Fx to drive margins
India business to breakeven at PAT level in FY18
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 (%)
TTMT IN
3,396.6
571 / 358
-2/-28/-45
1,189.8
20.0
3565
65.3
We hosted management of Tata Motors (TTMT) at our 13 Motilal Oswal Annual Global
Investor Conference (AGIC). The company’s commentary and the available levers
vindicate our view that the worst of operating performance is behind us. We are also now
more confident about an impending turnaround in the operational and financial
performance of JLR and India business. Key takeaways:
n
th
Financials Snapshot (INR b)
2017 2018E 2019E
Y/E Mar
Net Sales
2,697 3,009 3,817
EBITDA
369
364
563
NP
67
76
203
Adj. EPS (INR)
19.8
22.4
59.8
EPS Gr. (%)
(48.4)
13.3 166.5
BV/Sh. (INR)
171
195
256
RoE (%)
9.8
12.3
26.6
RoCE (%)
9.2
7.3
16.3
P/E (x)
18.9
16.7
6.3
P/BV (x)
2.2
1.9
1.5
Shareholding pattern (%)
As On
Jun-17 Mar-17 Jun-16
Promoter
34.7
34.7
33.0
DII
16.1
15.5
16.8
FII
23.5
23.2
25.0
Others
25.7
26.6
25.2
FII Includes depository receipts
Stock Performance (1-year)
Tata Motors
Sensex - Rebased
650
575
500
425
350
n
n
n
n
n
n
JLR is expected to outperform industry, driven by a favorable product pipeline,
with six launches planned over the next 12-15 months, including three new
rollouts (Velar, E-Pace and I-Pace), one upgrade (Evoque) and two refreshes
(RR and RR Sport). The company expects JLR’s retail sales to grow 10% in FY18
(v/s +4% in FY18 YTD and +16% in FY17).
Fx hedge losses are likely to start moderating substantially 4QFY18 onward.
Based on the current spot rates, hedge losses for FY19 would be negligible.
JLR has revised its hedging policy from May 2017, with one-year forward
hedging of up to 65% of net Fx exposure (as against up to 85% hedge earlier).
Jaguar I-Pace (full EV) will be launched by September 2018. JLR plans to offer
an electric variant (including hybrids) of each new JLR model line from 2020.
Competitive intensity remains very high, especially in the US market. This is
particularly evident from the very high incentives for premium sedans, while
the incentives on SUVs are relatively low. With several new products and
refreshes of RR/RR Sport, incentives are expected to start moderating from
4QFY18.
It expects EBIT margin of 6% in FY18 (in line with our estimate and compared to
1.2% in 1QFY18), driven by moderating incentives from 4QFY18, operating
leverage and favorable Fx. For the medium term, it expects an EBIT margin of
8-10%, in line with our estimate of 9.5% for FY19 and 8.8% for FY20.
It is targeting cost savings of ~INR15b in FY18, driving PAT breakeven in FY18.
Our estimates for the India business do not factor in for this swift turnaround
in FY18. In fact, our current estimates indicate PAT breakeven only in FY20.
Valuation and view:
JLR is poised for a sharp recovery, driven by its (a) promising
product pipeline, (b) beneficial Fx movement, (c) conducive mix, (d) favorable
operating leverage and (e) improved FCF conversion. India business is interestingly
positioned, with several levers to drive turnaround for both PVs and CVs. We
estimate ~74% PAT CAGR over FY17-19 (albeit on a low base, after declining at
~33% CAGR over FY15-17). The stock trades at 16.7x/6.3x FY18E/FY19E
consolidated EPS. We maintain
Buy
with a target price of INR542 (June 2019 SOTP-
based).
12 September 2017
5

Bharat Electronics
BSE SENSEX
31,688
S&P CNX
9,935
11 September 2017
Annual Report Update | Sector: Capital Goods
CMP: INR188
TP: INR215(+15%)
Buy
Capex of INR25b to capture future growth opportunities
Plans to expand through diversification; R&D remains key focus area
Capex plans of INR25b over next 3-4 years
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 (%)
BHE plans to spend INR25b over the next 3-4 years (INR5b-6b annually) on
modernization of its facilities and capacity expansion. Key projects include: (a)
setting up a missile/defense systems integration complex (INR5b) spread over 900
acres in Andhra Pradesh, (b) electro-optical device manufacturing facility (INR2.5b)
BHE IN
in Andhra Pradesh, and (c) electronic warfare test range. BHE is also upgrading its
2,234
image intensifier technology-based tubes fabrication facility (INR2b).
197 / 119
5/11/47
419.9
6.6
727
31.8
Provision reversals aid margin expansion in FY17
BHE’s other operating income for FY17 grew 104% to INR3.1b, led by withdrawal of
provisions on (a) onerous contract, and (b) doubtful debts and liquidated damages.
Provisions withdrawn in both the categories stood at INR1.7b as against INR0.02b
in FY16. Provision withdrawal led to gross margin expansion of 100bp to 48.8% and
operating margin improvement of 150bp to 20.5%.
Financials Snapshot (INR b)
Y/E Mar
2017 2018E 2019E
Net Sales
86.1 110.1 122.8
EBITDA
17.6
19.8
21.3
NP
15.5
16.5
18.4
EPS (INR)
6.9
7.4
8.2
EPS Gr. (%)
27.2
6.7
11.5
BV/Sh (INR)
33.7
43.6
48.7
RoE (%)
20.6
17.0
16.9
RoCE (%)
18.8
19.2
17.9
P/E (x)
23.1
22.3
21.8
P/BV (x)
4.8
3.8
3.7
Shareholding pattern (%)
Jun-17 Mar-17 Jun-16
As On
Promoter
68.2
68.2
75.0
DII
16.7
17.7
15.0
FII
7.6
6.7
3.9
Others
7.5
7.4
6.1
FII Includes depository receipts
Stock Performance (1-year)
Bharat Electron
Sensex - Rebased
200
175
150
125
100
NWC cycle elongates as customer advances declines
Net working capital (NWC) cycle for FY17 elongated to 91 days from 28 days in
FY16. Deterioration in NWC was mainly on account of decline in customer
advances from INR63.1b in FY16 to INR60.1b. Net core working capital cycle was
stable in FY17 at 349 days (342 days in FY16). Inventory as well as receivables days
were stable in FY17 at 208 days and 185 days, respectively.
Capex, working capital cycle elongation lead to negative FCF
BHE’s cash flow from operations (CFO) declined meaningfully from INR25.9b in
FY16 to INR5.5b in FY17. Decline in CFO was mainly on account of elongation in
working capital cycle, which in turn was impacted by decline in customer advances.
Free cash flow (FCF) for FY17 turned negative, led by capex of INR6.1b and working
capital cycle elongation.
Business expansion plans through diversification
To expand revenue streams, BHE plans to enter new business areas in the defense
and non-defense segments. Within defense, it plans to enter areas like indigenous
SAM systems, airborne radars, image intensifier tubes and thermal imaging
detectors for night vision devices, inertial navigation systems, navigational complex
system, electronic ammunition fuses, and pressurized missile containers. BHE also
plans to enter non-defense segments like homeland security, solar and space.
12 September 2017
6

Plans to double exports from 5% of sales in FY17
BHE’s exports for FY17 were USD66m (5% of the sales), down 23%, impacted by
customers’ non-preparedness to take delivery. As a result, few major naval orders
planned for execution did not materialize during the year. BHE has an export order
book of USD85m (USD17m from offset orders) and has set a target of USD72m
exports (up 9%) for FY18. Its long-term target is to reach sustained export
contribution of 10% of sales, up from the current level of 5%. Key projects exported
during FY17 are: CSS, CoMPASS, VHF Radio Bharti, ACCS, SANKET, EO FCS, and
electro-mechanical parts, among others.
R&D remains a key focus area
R&D has been BHE’s main focus area for increasing indigenization and value addition
in products / systems. R&D expenditure for FY17 was INR7.8b (8.8% of sales). The
focus on R&D spending has helped BHE to achieve 87% of sales (86% in FY16) from
indigenous products; 13% of sales came from products manufactured through ToT
from foreign OEMs. In FY17, BHE incurred R&D spending on key business segments
like radars, military communication, naval systems, missile systems, electronic
warfare, avionics, electro-optics, and tank electronics.
Valuation and view
BHE is well-positioned to benefit from rising defense expenditure, supported by (a)
strong manufacturing base and execution track record, (b) relationships with
defense and government agencies, (c) strategic collaboration with foreign
technology partners for new product development, (d) in-house R&D capabilities
(R&D spend at 8.8% of revenue), and (e) increased focus on exports to friendly
countries. We expect BHE to report EPS of INR7.4 in FY18 and INR8.2 in FY19. We
maintain Buy with a revised TP of INR215 (25x June FY19E EPS, its peak historical
valuation to factor in improved pace of decision-making in defense sector).
12 September 2017
7

F
UEL
Total savings to be lower in FY17 despite higher financial savings
Higher savings must to reap demographic dividend
R
E
NGINES
11 September 2017
F
RIEND
O
F
T
HE
E
CONOMY
Households’ net financial savings (NFS) grew only marginally from 8% in FY16 to 8.2% in FY17. Notwithstanding
demonetization, while gross financial savings (GFS) did not witness any unusual increase –
as expected,
the composition of
GFS changed significantly. We also continue to believe that total domestic savings (TDS) fell further from the reported 32.2%
of GDP in FY16 to ~30% in FY17, primarily due to lower households’ physical savings and private corporate savings. With
current account deficit (CAD) at 12-year low of 0.7% of GDP, India’s investments rate fell to a 13-year low of ~31% of GDP last
year. In 1QFY18, investments rate was 32.5% of GDP, similar to that in 1QFY17, primarily supported by more than doubling of
foreign savings/borrowings, as domestic (implied) savings fell to 28.6% of GDP, lower than ~31% of GDP in 1QFY17.
Continuous fall in savings rate, especially given India’s demographic profile, is concerning – we hope it is transitory. With
households’ income growing slowly, their consumption must also grow slowly to allow savings to rise. Till then, the Indian
economy will continue to be driven by consumption, hurting future potential output and keeping inflationary fears alive.
Households’ net financial
savings – an important
resource for domestic
investments – grew only
marginally from 8% of GDP
in FY16 to 8.2% in FY17
Households’ net financial savings up only marginally in FY17…:
Immediately post
the announcement of demonetization on November 8, 2016, we had
stated
“…With
households forced to convert their currency into deposits, gross financial savings
(GFS) of households, ceteris paribus, will not change because both are components
of GFS…”.
According to Reserve Bank of India’s (RBI) annual report, households’
gross financial savings increased from 11.2% of GDP in FY16 to 12% of GDP in FY17 –
similar to the increase of 0.8 percentage point of GDP seen in FY16
(Exhibit 1).
The
composition, however, did change last year
(Exhibit 1-2).
At the same time,
households’ financial liabilities also gathered pace due to which households’ net
financial savings – an important resource for domestic investments – grew only
marginally from 8% of GDP in FY16 to 8.2% in FY17
(Exhibit 3).
FY12
10.7
1.2
6.3
3.3
(0.3)
0.2
3.3
7.4
FY13
10.7
1.1
6.4
3.3
(0.2)
0.2
3.3
7.4
FY14
10.6
0.9
6.1
3.3
0.2
0.2
3.2
7.4
FY15
10.4
1.1
5.2
3.9
0.0
0.2
3.0
7.4
FY16
11.2
1.4
5.2
3.9
0.5
0.3
3.2
8.0
FY17
12.0
-2.2
7.8
4.8
0.5
1.2
3.8
8.2
Exhibit 1: Household financial savings and liabilities
% of GDP
Gross financial savings
Currency
Deposits*
Insurance, provident & pension funds
Claims on government
Shares & debentures
Financial liabilities
Net financial savings
* Include bank deposits, non-bank deposits and (net) trade debt
Source: RBI, Central Statistics office (CSO), MOSL
Please note the data differ from the that in RBI’s annual report because RBI has provided data as % of GNDI not GDP
…but total domestic savings (TDS) are expected to continue to fall:
While
household financial savings increased in line with our expectations, we continue to
believe that households’ physical savings will continue to fall, leading to a fall in
households’ total savings. Further, with lower private corporate savings, we believe
that TDS will fall from ~32% of GDP in FY16 to ~30% in FY17.
12 September 2017
8

In conversation
1. Will pass on cess hike to customers; won't have impact on
margin: M&M; Pawan Goenka, MD
n
n
n
n
n
Grateful to the council for bringing back pre-GST relative parity in excise duty.
Earlier difference was 3-6% which is what has been done now.
Hybrid cars get 2-7% relief on cess.
Bolero will attract 7 percent additional cess and XUV 500 and Scorpio will attract
5 percent additional cess.
Don’t expect large impact of cess increase on demand.
Will definitely be passing on total impact of increase so no impact on margins.
2. Focusing on maintaining or slightly improving margins: Dabur;
Lalit Malik, CFO
n
n
n
n
n
Sentiments and demands improving post GST but sales not yet back to pre-GST
levels.
Industry will take time to get used to GST norms.
Distributors complying with GST provisions. No breaking of distribution chain for
company.
Expect demand to kick in post monsoon. Good growth expected in terms of
volume increase. In FMCG sector, company expects to be in mid to high single
digit growth for volumes. Have indicated between 5-9% range.
Focusing on maintaining or slightly improving margins.
3. Being part of a bank will help mitigate lot of risks: Bharat
Financial Inclusion; MR Rao, MD & CEO
n
n
n
n
n
n
Due diligence yet to be done on both sides and final terms yet to be negotiated
with IndusInd Bank.
Converting into a bank post the deal would enable company to become more
efficient in cashing transactions, have more products and cost of funds will be
lower.
Would be able to handle competition from small finance banks and help
mitigate a lot of risks.
Structure of transactions yet to be decided on becoming a subsidiary or merged
into the bank.
Current cost to income around 52% due to demonetization and election.
Digitization would lead to becoming cashless and tech savvy which would
reduce cost to income ratio to below 40%.
Growth on tract. One-time impact of demonetization fully provided. All new
loans from January 2017 clocking at 99.99% repayment. Stand by the guidance
given for the year in terms of growth at 50%.
12 September 2017
9

From the think tank
1. Narendra Modi Govt’s growth challenge
n
The Narendra Modi government is facing fresh challenges on the economic
front. The pace of economic growth has slowed considerably, with no clear sign
of a sharp pullback in the near term. Gross domestic product (GDP) expanded at
a modest pace of 5.7% in the first quarter of the current fiscal. Gross value-
added (GVA) growth—the preferred indicator of economic activity—came in at
5.6%, compared with 7.6% in the same quarter last year. The slowdown has
surprised analysts and most private sector economists have revised downwards
their full-year forecast. It now seems difficult for the economy to get close to
the Reserve Bank of India’s (RBI’s) GVA growth forecast of 7.3% for the current
year. Gross fixed capital formation has slipped below 30% of GDP. Slower
growth during the quarter is being attributed to the lingering impact of
demonetisation and destocking of inventory before the implementation of the
goods and services tax (GST).
2. The ‘3-3-3’ puzzle and what to do about it
n
That we are in the midst of an unprecedented and alarming widening of income
gaps amongst Indian states is becoming accepted as conventional wisdom. My
co-author Praveen Chakravarty and I have been documenting this point for the
past year, and our research at the IDFC Institute finds mention in last week’s The
Economist in a very useful report on the topic. The facts are stark and simply
illustrated (see chart). The ratio of per capita state income levels as between the
richest three and the poorest three of the 12 largest states has been
skyrocketing for the past quarter-century, and today stands at well over 300%.
We have dubbed this the “3-3-3” puzzle: The three richest states are three times
as rich as the three poorest states. It is a puzzle because orthodox economic
theory predicts that contiguous economic units which are knitted together by
movements of trade and people ought to exhibit convergence, not divergence.
3. When the home looks like a hotel and vice versa
n
For India’s uber rich, the lines between home and the hotel are blurring. They
stay at high-end apartments designed like five-star luxury properties, and at
opulent hotels that offer services and amenities which make one feel like they
are at home. For instance, swanky apartments like the World Towers by the
Lodha Group has engaged Italian designer Giorgio Armani for its over $1 million
three-or four-bedroom apartments in Mumbai. Then there is Yoo in Pune,
designed by Philippe Starck and John Hitchcox, who have designed landmark
projects in Asia, Australia, Europe, Africa, North and South America and the
Middle East.
12 September 2017
10

4. Metal prices are soaring, but what is really driving the
upswing
n
Global commodity indices have remained range-bound since the beginning of
2017. This can largely be attributed to softness in the crude prices during the
first half of 2017, which has pulled down overall indices. On the other hand, the
non-ferrous metal segment has seen a sharp appreciation in prices in the last
few months, due to macroeconomic improvements as well as certain sector-
specific factors. The prices of commodities such as copper and aluminium were
supported by supply-related reforms and disruptions in the industry, stable
demand and a weakening dollar. Copper prices have sharply appreciated
throughout the second quarter of CY2017. Year to date, the prices have moved
up by 16%. On an annual basis, the average copper prices for the first seven
months in 2017 stood at $5,810 per tonne, marking an increase of 23% year-on-
year. Aluminium prices have appreciated gradually during the first quarter of
2017, with year-to-date price appreciation of 14%. On an annual basis, the
average LME aluminium prices for the first seven months of 2017 stood at
$1,890 per tonne, marking an increase of 21% year-on-year.
International
5. China is leaving Donald Trump’s America behind
n
A week in China is enough to persuade anyone that the world has spun back to
front. The benefits of immigration, the quest for fresh discoveries, the desire for
education, the recognition of the benefits of stability, purpose and enterprise
are flourishing in China at the very time that they are being maligned, belittled
or ignored in the US by Donald Trump. Take immigrants. The Chinese
government has decided to expand a programme that allows qualified foreign
graduates to obtain work and residency permits. It also floated the possibility of
expanding the programme to provide for permanent residency. Compare this
with the demonisation of Muslims, once welcomed in America, the proposed
reversal of the “Dreamer” programme and the dragnets of Homeland Security
personnel rounding up illegal immigrants in the US.
12 September 2017
11

Click excel icon
for detailed
valuation guide
Rs
Valuation snapshot
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E FY19E
27.8
22.5
21.4
32.3
40.4
18.6
38.1
34.8
17.8
24.1
20.8
18.7
24.3
28.9
16.7
44.4
24.7
22.6
22.4
99.5
21.0
26.7
19.5
20.3
28.9
20.8
31.0
29.8
10.1
20.0
24.1
14.4
NM
11.1
8.7
8.2
7.3
23.7
18.5
14.7
17.5
40.3
30.4
23.2
21.0
14.6
52.6
33.7
15.1
27.8
15.8
5.2
5.6
5.0
6.7
7.7
2.9
16.5
8.3
3.3
3.8
7.8
3.0
2.8
6.8
2.2
12.6
4.9
2.2
2.7
2.6
2.2
5.4
2.1
1.3
5.4
0.7
4.8
4.7
1.1
3.9
3.4
0.9
0.6
0.7
0.5
0.9
0.3
0.8
1.3
0.4
0.9
10.9
5.5
3.3
4.3
2.2
19.3
7.0
4.5
4.6
3.1
4.5
4.9
4.5
5.8
6.9
2.6
12.3
6.9
2.9
3.4
6.7
2.7
2.5
5.9
1.9
10.4
4.3
2.0
2.2
2.5
1.8
4.7
2.0
1.2
4.7
0.7
4.3
3.3
1.0
3.4
3.0
0.9
0.7
0.7
0.5
0.9
0.3
0.8
1.2
0.4
0.8
8.9
4.4
2.9
3.6
1.9
15.8
6.4
4.0
4.0
2.7
20.3
23.1
25.3
16.2
15.8
16.9
37.1
20.8
10.6
13.9
35.7
14.2
6.4
20.3
9.8
25.6
17.1
6.9
10.8
9.5
9.9
18.3
10.2
5.6
15.4
-27.0
13.8
12.3
9.5
18.9
11.5
4.0
-6.7
4.2
1.4
10.1
-8.4
3.6
-0.2
2.7
0.9
21.7
15.1
12.0
18.0
14.4
32.5
18.9
25.5
12.4
19.4
17.3
23.2
22.2
19.2
18.0
14.8
37.0
21.6
17.3
14.1
34.6
13.9
10.8
20.1
12.3
25.7
17.4
9.3
11.4
2.6
10.0
18.8
8.9
6.3
17.3
3.5
15.0
13.6
10.8
18.3
12.5
6.1
-5.2
6.2
5.8
10.9
4.6
3.2
7.0
3.0
4.6
24.3
16.1
13.3
18.6
14.1
33.0
19.3
28.2
15.6
18.2
19.9
27.0
24.0
22.8
20.7
17.3
35.4
23.3
18.3
15.0
31.5
14.9
11.5
22.8
26.6
33.6
22.3
14.7
11.8
8.7
10.5
19.6
9.5
6.9
18.5
7.2
16.3
13.9
12.7
19.5
14.2
12.4
3.0
9.1
7.3
11.2
5.4
5.9
11.4
6.1
8.3
25.9
28.0
15.6
19.0
15.6
32.8
18.4
31.3
19.1
18.5
Company
Automobiles
Amara Raja
Ashok Ley.
Bajaj Auto
Bharat Forge
Bosch
CEAT
Eicher Mot.
Endurance Tech.
Escorts
Exide Ind
Hero Moto
M&M
Mahindra CIE
Maruti Suzuki
Tata Motors
TVS Motor
Aggregate
Banks - Private
Axis Bank
DCB Bank
Equitas Hold.
Federal Bank
HDFC Bank
ICICI Bank
IDFC Bank
IndusInd
J&K Bank
Kotak Mah. Bk
RBL Bank
South Indian
Yes Bank
Aggregate
Banks - PSU
BOB
BOI
Canara
IDBI Bk
Indian Bk
OBC
PNB
SBI
Union Bk
Aggregate
NBFCs
Bajaj Fin.
Bharat Fin.
Capital First
Cholaman.Inv.&Fn
Dewan Hsg.
GRUH Fin.
HDFC
Indiabulls Hsg
L&T Fin Holdings
LIC Hsg Fin
Reco
Buy
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Neutral
Buy
Neutral
Buy
Not Rated
Buy
Buy
Buy
CMP
(INR)
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
26
1
12
15
0
16
10
4
11
21
-3
27
8
44
-4
28.0
4.6
132.3
26.2
473.1
93.3
612.7
23.5
20.0
8.1
169.1
54.3
5.4
248.6
19.8
11.7
785
986
116
118
2,930 3,281
1,178 1,353
22,088 21,994
1,751 2,029
32,467 35,854
1,020 1,059
658
732
221
269
3,946 3,818
1,281 1,625
240
-
8,145 8,819
375
542
639
612
28.2
37.9
28.0
5.2
7.0
25.5
137.2 163.6 22.2
36.5
50.5
45.0
547.2 705.7 46.7
94.2 126.8 18.8
852.9 1,092.8 53.0
29.3
37.9
43.5
37.1
45.8
33.0
9.2
11.0
27.3
189.3 199.1 23.3
68.5
82.4
23.6
9.9
11.8
44.8
281.7 374.5 32.8
22.4
59.8
18.9
14.4
23.7
54.4
28.6
21.8
8.4
1.7
5.4
68.2
14.9
2.8
61.9
3.8
32.4
18.0
2.9
92.3
38.1
10.4
6.1
6.8
82.1
17.0
3.2
76.8
8.2
41.0
23.7
3.7
114.5
32.1
26.7
34.1
23.4
32.1
19.0
24.1
37.3
NM
37.5
45.1
13.3
25.2
29.9
23.0
NM
17.8
36.7
9.6
NM
22.2
910.5
16.5
98.5
57.2
46.1
31.3
25.6
18.6
64.3
38.0
18.8
38.9
17.2
Neutral
Neutral
Buy
Buy
Buy
Buy
Neutral
Buy
Neutral
Buy
Under Review
Buy
Buy
493
187
172
113
1,823
291
56
1,791
80
1,006
536
29
1,842
545
192
201
139
2,000
366
62
1797
91
1,153
-
34
2,133
11
3
17
23
10
26
10
2
14
15
18
16
15.4
7.0
5.0
4.8
56.8
15.3
2.3
47.9
-31.3
26.8
11.9
2.2
73.0
Buy
Neutral
Neutral
Neutral
Buy
Neutral
Buy
Buy
Neutral
138
143
334
56
281
125
138
271
133
198
149
360
49
382
150
184
341
140
44
4
8
-12
36
20
33
26
5
6.0
-14.8
18.8
1.5
29.3
-31.6
6.2
0.3
8.1
9.5
-11.2
30.1
6.4
34.4
17.1
5.8
14.6
9.0
20.8
6.6
47.0
8.6
38.3
21.4
11.0
26.8
19.1
Buy
Neutral
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Neutral
1,921
967
772
1,178
549
523
1,781
1,299
204
656
1,800
820
925
1,400
630
450
1,900
1,350
200
708
-6
-15
20
19
15
-14
7
4
-2
8
33.6
21.0
24.6
46.0
29.6
8.1
46.8
69.0
5.2
38.2
47.6
31.8
33.3
56.0
37.7
9.9
52.9
86.3
7.3
41.6
62.9
68.7
44.3
67.3
47.1
12.1
59.0
108.4
10.6
48.9
12 September 2017
12

Company
Manappuram
M&M Fin.
Muthoot Fin
PFC
Repco Home
REC
Shriram City Union
STF
Aggregate
Capital Goods
ABB
Bharat Elec.
BHEL
Blue Star
CG Cons. Elec.
CG Power & Indu.
Cummins
GE T&D
Havells
K E C Intl
L&T
Pennar Eng.
Siemens
Solar Ind
Suzlon Energy
Thermax
Va Tech Wab.
Voltas
Aggregate
Cement
Ambuja Cem.
ACC
Birla Corp.
Dalmia Bharat
Grasim Inds.
India Cem
J K Cements
JK Lakshmi Ce
Ramco Cem
Orient Cem
Prism Cem
Shree Cem
Ultratech
Aggregate
Consumer
Asian Paints
Britannia
Colgate
Dabur
Emami
Godrej Cons.
GSK Cons.
HUL
ITC
Jyothy Lab
Reco
Not Rated
Buy
Buy
Neutral
Buy
Neutral
Buy
Buy
CMP
(INR)
108
451
503
127
671
165
2,074
1,059
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
-
8.6
10.8
12.5
459
2
7.1
13.9
17.8
550
9
29.5 38.2
44.2
117
-8
25.7 27.2
30.2
800
19
29.1 34.5
39.3
134
-19
31.4 35.0
40.4
2,800
35
84.3 121.7 164.1
1,330
26
55.6 80.0 102.4
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E FY19E
12.5 10.0
2.7
2.5
24.0 25.9 26.9
63.7 32.5
4.0
3.8
6.5
12.0 14.2
17.0 13.2
3.1
2.6
19.4 21.5 21.2
4.9
4.7
0.8
0.7
17.9 17.0 16.8
23.0 19.4
3.7
3.1
17.4 17.5 17.0
5.2
4.7
1.0
0.8
19.9 19.1 19.1
24.6 17.0
2.7
2.4
11.7 15.0 17.6
19.0 13.2
2.1
1.9
11.7 15.0 16.9
21.5 18.0
3.6
3.2
16.8 17.6 18.1
69.2
27.7
60.8
61.5
45.4
21.2
34.4
71.6
52.0
26.6
28.8
16.1
75.1
42.7
26.5
28.5
20.8
34.6
35.1
58.3
49.7
33.3
71.1
18.1
32.8
30.4
60.2
27.0
NM
403.3
48.8
43.4
38.1
58.8
58.3
54.1
42.8
42.8
49.2
32.7
62.1
32.6
37.0
60.9
25.9
28.6
45.2
42.2
42.8
32.9
44.2
45.4
24.1
26.0
12.5
58.9
36.3
19.1
29.3
17.9
31.9
30.5
41.0
36.1
23.9
40.2
17.2
23.1
25.8
43.1
26.9
36.8
31.6
40.7
45.5
32.7
55.7
50.4
47.0
40.1
42.2
43.1
32.3
53.1
29.5
42.3
8.8
5.7
1.0
10.0
24.7
1.3
6.7
10.2
9.5
5.1
3.4
1.6
7.0
7.8
-1.5
3.9
3.4
5.4
3.9
3.0
3.9
2.3
4.9
2.0
1.1
4.1
3.5
4.7
3.4
5.8
8.5
4.8
3.7
15.6
19.1
24.5
11.3
14.7
11.9
6.9
39.6
7.4
6.9
7.7
4.4
1.0
9.4
18.2
1.3
6.3
8.9
8.5
4.4
3.8
1.5
6.1
6.7
-1.7
3.6
2.9
4.8
3.9
2.8
3.7
2.1
4.4
1.8
1.1
3.6
3.3
4.1
3.1
5.0
7.1
4.4
3.4
14.2
15.8
23.3
9.7
12.5
9.3
6.7
38.2
7.3
7.0
12.7
20.6
1.6
18.0
76.4
6.2
21.2
12.4
18.2
21.2
12.5
10.2
9.3
19.8
NM
14.3
16.8
18.0
11.2
5.1
7.9
7.3
7.2
11.5
3.4
14.4
6.0
19.0
-3.2
1.4
18.4
11.6
9.6
28.5
36.9
50.4
28.4
35.8
24.6
22.2
65.6
23.5
21.1
12.6
17.0
3.4
21.4
49.7
3.0
19.7
21.5
18.6
19.5
13.7
11.6
10.3
19.8
-8.8
12.7
17.6
15.8
12.6
7.0
10.6
9.2
11.6
10.9
4.7
14.8
7.9
16.1
8.8
17.0
19.1
10.1
10.3
26.7
34.3
50.8
26.0
32.0
24.2
21.1
73.1
24.8
16.5
15.8
16.9
3.5
29.6
49.7
3.7
22.8
22.7
20.7
20.9
15.6
12.6
13.7
20.9
-11.0
12.8
17.4
16.0
13.6
7.9
13.1
12.2
13.4
13.9
6.6
17.5
12.1
17.5
12.8
22.9
19.1
14.0
12.7
28.1
34.5
58.2
26.3
33.9
22.8
22.6
82.8
26.3
18.4
Sell
Buy
Sell
Neutral
Buy
Neutral
Buy
Neutral
Neutral
Neutral
Buy
Not Rated
Neutral
Neutral
Not Rated
Neutral
Buy
Sell
1,364
192
131
792
212
87
910
410
497
315
1,217
113
1,338
880
17
880
618
535
1,200
215
100
650
250
80
1,170
395
455
295
1,340
-
1,355
900
-
830
800
430
-12
12
-23
-18
18
-8
29
-4
-8
-6
10
1
2
-6
29
-20
19.7
6.9
2.1
12.9
4.7
4.1
26.5
5.7
9.6
11.9
42.3
7.1
17.8
20.6
0.6
30.8
29.8
15.5
22.4
7.4
4.6
17.5
5.0
2.0
27.7
9.3
10.9
13.1
46.8
9.1
22.7
24.2
0.9
30.0
34.6
16.8
31.6
8.2
4.9
26.1
6.4
2.5
35.0
11.3
13.8
16.4
53.2
11.2
33.0
30.0
1.0
33.2
39.8
19.1
Buy
Neutral
Buy
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Buy
285
308
1,796 1,622
977
1,150
2,757 3,282
1,230 1,276
185
201
1,024 1,277
419
519
737
806
163
185
110
140
18,751 22,360
4,166 4,936
8
-10
18
19
4
9
25
24
9
14
27
19
18
4.9
7.0
36.1 49.8
29.4 40.9
38.8 68.7
67.9 71.3
5.6
8.0
33.7 39.7
7.0
9.7
27.3 27.4
-1.6
4.4
0.3
3.5
384.4 460.4
96.1 91.5
8.2
65.0
58.9
89.9
102.7
11.8
54.4
16.4
34.4
7.1
5.6
547.8
138.8
Neutral
Buy
Buy
Neutral
Buy
Neutral
Sell
Buy
Neutral
Neutral
1,237
4,299
1,149
310
1,136
929
5,106
1,219
274
415
1,200
4,660
1,285
315
1,310
995
4,500
1,360
280
395
-3
8
12
2
15
7
-12
12
2
-5
21.0 22.2
73.7 85.3
21.2 24.4
7.2
7.7
26.5 26.9
18.9 21.5
156.1 158.1
19.6 22.9
8.4
9.3
11.2
9.8
26.5
104.6
29.8
9.1
33.1
24.7
182.1
27.3
10.3
11.1
12 September 2017
13

Company
Marico
Nestle
Page Inds
Parag Milk
Pidilite Ind.
P&G Hygiene
Prabhat Dairy
United Brew
United Spirits
Aggregate
Healthcare
Alembic Phar
Alkem Lab
Ajanta Pharma
Aurobindo
Biocon
Cadila
Cipla
Divis Lab
Dr Reddy’s
Fortis Health
Glenmark
Granules
GSK Pharma
IPCA Labs
Jubilant Life
Lupin
Sanofi India
Shilpa Medicare
Strides Shasun
Sun Pharma
Syngene Intl
Torrent Pharma
Aggregate
Logistics
Allcargo Logistics
Blue Dart
Concor
Gateway
Distriparks
Gati
Transport Corp.
Aggregate
Media
Dish TV
D B Corp
Den Net.
Ent.Network
Hind. Media
HT Media
Jagran Prak.
Music Broadcast
PVR
Siti Net.
Sun TV
Reco
Neutral
Neutral
Buy
Neutral
Neutral
Neutral
Not Rated
Neutral
Neutral
CMP
TP
% Upside
(INR)
(INR) Downside
324
355
10
7,294 6,160
-16
18,668 19,600
5
247
245
-1
845
810
-4
8,300 8,800
6
133
-
778
875
12
2,583 2,525
-2
FY17
6.3
118.0
238.7
3.6
16.7
132.9
3.5
8.7
26.7
EPS (INR)
FY18E FY19E
6.8
8.2
115.1 133.6
294.7 398.4
9.1
12.5
18.1
20.6
151.6 176.0
3.5
6.4
10.1
15.0
34.5
51.5
P/E (x)
FY17 FY18E
51.5 47.5
61.8 63.4
78.2 63.4
68.6 27.2
50.5 46.8
62.4 54.8
37.7 38.3
89.5 77.2
96.6 74.9
46.9 42.3
23.2
23.9
20.2
18.9
33.1
33.6
34.7
18.1
29.7
14.9
14.5
17.0
70.8
29.3
18.8
17.5
31.0
42.8
29.2
17.9
36.5
21.7
22.8
17.3
41.2
37.0
32.3
13.9
17.2
31.2
78.2
18.4
NM
75.2
10.1
13.6
16.4
60.1
65.6
NM
33.3
24.5
24.6
22.4
16.5
34.7
26.7
26.2
21.4
27.1
70.5
13.3
15.1
52.0
28.4
14.8
23.6
30.0
28.4
19.9
31.1
29.5
22.4
25.0
15.1
32.5
33.4
24.4
7.3
13.8
26.2
59.1
15.8
NM
64.3
9.3
12.7
14.3
41.4
43.6
NM
29.1
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY19E
18.0 15.4 36.7 34.9 37.7
23.3 21.7 39.0 35.5 38.1
31.3 25.1 40.0 39.6 43.1
3.2
2.8
6.0
11.0 13.3
13.1 10.7 28.2 25.2 23.5
39.1 32.5 39.3 64.9 62.8
1.9
1.8
5.2
4.9
8.5
8.9
8.1
10.4 11.0 14.7
19.4 13.5 21.3 18.0 20.3
12.9 11.9 27.5 28.2 29.3
5.0
5.1
6.7
4.6
4.2
7.0
3.5
4.1
2.9
1.6
3.6
3.1
10.3
2.4
3.1
3.3
5.3
5.2
3.1
3.1
7.4
4.7
3.9
2.6
18.3
3.9
2.3
1.9
2.7
3.9
16.8
4.3
1.6
4.8
1.8
0.9
2.4
4.0
6.5
3.6
7.9
4.3
4.4
5.3
3.7
3.9
5.9
3.2
3.7
2.7
1.4
2.9
2.2
12.0
2.3
2.6
3.0
5.0
4.5
2.8
3.1
6.0
4.1
3.5
2.3
13.9
3.7
2.2
1.7
2.3
3.6
13.1
3.9
1.7
4.5
1.5
0.8
2.4
3.7
5.7
3.8
7.3
23.0
23.4
37.7
27.6
12.3
23.0
10.2
23.5
9.7
11.3
24.7
21.1
14.5
8.6
18.1
20.6
17.1
14.4
10.7
18.5
22.2
23.8
16.9
12.6
50.5
10.8
7.3
12.4
16.7
12.4
24.1
25.5
-12.0
6.7
19.0
7.1
17.6
11.2
10.4
-23.5
23.6
19.0
19.2
26.5
24.8
11.1
23.9
12.1
18.1
10.6
2.1
21.6
17.7
23.0
8.2
19.5
13.2
16.6
17.0
14.7
10.0
22.5
19.5
14.0
16.0
48.6
11.3
9.4
19.4
17.8
13.8
24.9
25.8
-5.3
7.2
17.3
6.9
16.5
9.3
14.0
-4.1
25.0
20.4
20.5
25.9
22.1
14.5
26.3
13.2
19.4
14.3
4.9
20.9
18.8
30.9
12.2
19.6
16.0
18.1
20.4
20.2
14.7
20.7
21.5
16.3
16.8
46.8
12.4
12.4
25.4
18.6
15.4
99.2
26.6
0.7
10.7
17.3
6.4
17.4
12.4
18.2
6.2
28.8
Neutral
Neutral
Buy
Buy
Sell
Buy
Neutral
Neutral
Neutral
Buy
Neutral
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Not Rated
Neutral
501
1,808
1,179
741
337
477
552
720
2,159
154
571
123
2,434
471
695
978
4,006
600
941
469
475
1,195
510
1,830
1,606
850
330
555
520
680
2,400
220
775
200
2,500
430
905
1,125
4,820
805
1,300
515
-
1,350
2
1
36
15
-2
16
-6
-6
11
43
36
62
3
-9
30
15
20
34
38
10
13
21.6 20.5
75.7 73.5
58.4 52.8
39.3 44.9
10.2
9.7
14.2 17.9
15.9 21.1
39.7 33.6
72.6 79.6
10.3
2.2
39.3 42.9
7.2
8.2
34.4 46.8
16.1 16.6
37.0 47.1
55.8 41.4
129.1 133.6
14.0 21.1
32.3 47.4
26.1 15.1
13.0 16.1
55.2 53.4
25.5
91.6
64.2
50.0
14.2
24.1
26.0
40.0
120.1
5.6
51.7
11.5
54.9
26.8
56.7
56.3
160.6
30.4
74.8
23.3
18.0
67.3
Buy
Not Rated
Neutral
Buy
Not Rated
Not Rated
170
4,226
1,406
220
116
291
212
-
1,214
272
-
-
24
-14
24
9.8
11.2
102.5 129.9
38.0 42.1
6.8
8.4
16.9
9.0
15.9
21.0
13.3
163.2
48.6
12.4
23.9
25.9
Buy
Buy
Neutral
Neutral
Buy
Neutral
Buy
Buy
Buy
Neutral
Neutral
77
376
85
859
263
101
177
386
1,347
26
828
106
450
90
928
350
90
225
469
1,628
32
860
37
20
6
8
33
-11
27
22
21
23
4
1.0
20.4
-8.6
11.4
25.9
7.4
10.8
6.4
20.5
-1.8
24.9
1.3
23.7
-2.7
13.4
28.3
7.9
12.4
9.3
30.9
-0.3
28.5
4.3
27.6
0.3
21.7
33.6
8.1
14.1
14.0
46.9
0.4
35.9
12 September 2017
14

Company
Zee Ent.
Aggregate
Metals
Hindalco
Hind. Zinc
JSPL
JSW Steel
Nalco
NMDC
SAIL
Vedanta
Tata Steel
Aggregate
Oil & Gas
BPCL
GAIL
Gujarat Gas
Gujarat St. Pet.
HPCL
IOC
IGL
MRPL
Oil India
ONGC
PLNG
Reliance Ind.
Aggregate
Retail
Jubilant Food
Titan Co.
Aggregate
Technology
Cyient
HCL Tech.
Hexaware
Infosys
KPIT Tech
L&T Infotech
Mindtree
Mphasis
NIIT Tech
Persistent Sys
Tata Elxsi
TCS
Tech Mah
Wipro
Zensar Tech
Aggregate
Telecom
Bharti Airtel
Bharti Infratel
Idea Cellular
Tata Comm
Aggregate
Utiltites
Reco
Buy
CMP
(INR)
520
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
630
21
23.1 14.7
18.9
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E FY19E
22.5 35.3
8.6
7.4
24.7 22.6 24.5
40.3 30.9
5.7
5.2
14.0 16.7 21.3
15.5
15.7
NM
18.0
22.6
13.6
NM
21.8
17.4
21.9
10.6
17.5
40.3
22.4
11.4
10.0
31.5
9.2
17.1
9.9
20.9
16.9
13.0
145.1
70.1
75.1
17.2
14.4
19.8
14.0
9.6
13.8
17.9
15.6
13.1
16.1
32.0
18.5
14.3
17.8
15.2
16.6
36.2
24.8
NM
24.8
36.9
11.4
13.9
NM
12.1
23.9
10.9
NM
13.8
10.2
15.3
14.9
14.9
22.1
17.7
13.6
11.7
27.7
14.5
11.8
9.9
16.9
14.2
13.0
98.0
59.6
62.7
14.9
13.9
17.3
14.1
10.8
12.7
15.5
15.1
11.8
14.0
26.8
18.4
13.0
16.6
15.3
16.5
92.6
20.6
NM
77.6
204.4
1.9
4.2
0.4
2.8
1.6
1.9
0.7
2.0
2.0
1.8
3.3
1.7
6.9
2.5
3.5
2.0
6.6
2.4
0.9
0.9
4.4
1.8
1.7
11.9
13.3
12.9
2.8
3.6
4.8
2.9
1.4
4.8
2.9
2.1
1.7
2.5
10.0
5.5
2.3
2.8
2.4
3.8
2.4
4.4
1.1
12.1
2.6
1.6
4.6
0.5
2.4
1.5
1.8
0.8
1.9
1.8
1.7
2.9
1.6
5.5
2.2
3.0
1.8
5.6
2.1
0.9
0.9
3.7
1.6
1.6
10.9
12.1
11.8
2.5
3.2
4.2
2.6
1.3
3.7
2.9
2.2
1.7
2.4
8.1
5.9
2.1
2.8
2.2
3.7
2.3
3.8
1.4
10.5
2.6
14.0
24.4
-7.9
17.3
7.2
12.8
-6.7
9.7
15.7
8.2
32.4
9.6
17.8
11.6
32.4
21.2
21.0
31.4
5.7
10.1
23.2
11.6
13.3
8.2
20.6
17.2
16.2
27.5
26.5
22.0
14.3
40.4
16.8
13.2
13.7
17.0
37.1
32.6
18.4
16.9
17.2
22.9
15.3
31.5
-4.9
21.3
6.5
15.2
-9.1
14.2
18.6
11.2
20.4
11.3
27.6
13.2
23.6
16.0
21.9
15.5
7.5
9.4
23.7
12.3
12.2
11.1
21.3
18.9
16.6
24.9
25.7
19.6
13.0
33.0
17.3
14.5
14.4
17.9
33.5
31.1
17.4
16.1
15.0
22.8
15.4
38.0
0.6
20.8
7.7
15.6
-5.3
20.4
16.2
14.0
21.4
12.4
27.4
14.2
21.7
15.8
20.9
17.0
8.0
10.9
25.5
12.3
12.7
14.0
22.2
19.6
17.3
23.8
23.1
19.3
14.2
29.4
20.1
16.2
15.4
20.7
32.2
33.5
16.9
16.1
17.9
22.0
3.8
19.4
-21.7
33.6
2.8
Buy
Neutral
Buy
Buy
Neutral
Buy
Sell
Buy
Neutral
250
309
143
266
83
135
63
330
661
309
301
194
297
63
180
30
361
591
24
-2
36
12
-24
33
-52
9
-11
16.2
19.7
-20.9
14.8
3.7
10.0
-6.2
15.1
37.9
22.0
22.2
-15.8
21.9
3.5
12.4
-7.7
23.9
65.1
26.3
29.3
2.0
25.7
4.2
12.1
-4.2
37.4
64.3
Neutral
Sell
Sell
Neutral
Buy
Buy
Neutral
Sell
Buy
Buy
Buy
Neutral
513
394
821
197
465
428
1,383
137
330
163
237
818
515
346
691
171
510
458
1,152
113
316
195
274
750
0
-12
-16
-13
10
7
-17
-17
-4
19
16
-8
48.3
22.6
20.4
8.8
40.7
43.0
44.0
14.8
19.3
16.4
11.4
48.3
34.3
26.5
37.2
11.1
34.1
36.7
49.9
9.4
27.9
16.5
14.0
57.8
41.3
31.3
46.1
13.3
36.3
40.4
56.3
11.7
31.1
19.7
17.9
64.1
Sell
Neutral
1,452
633
850
565
-41
-11
10.0
9.0
14.8
10.6
20.7
12.6
Buy
Neutral
Neutral
Buy
Neutral
Buy
Neutral
Neutral
Neutral
Buy
Buy
Neutral
Buy
Neutral
Buy
527
861
272
879
114
767
446
609
498
608
1,802
2,464
440
301
794
600
950
250
1,050
140
880
450
610
540
750
1,992
2,350
490
270
950
14
10
-8
20
22
15
1
0
8
23
11
-5
11
-10
20
30.6 35.4
59.8 61.8
13.7 15.7
62.9 62.2
11.9 10.6
55.5 60.2
24.9 28.7
38.9 40.3
38.0 42.3
37.7 43.3
56.3 67.4
133.4 133.6
30.9 34.0
16.9 18.1
52.1 51.9
41.9
65.9
16.5
67.2
13.1
68.0
32.9
43.0
48.7
52.0
79.7
147.7
36.8
19.1
70.0
Buy
Buy
Buy
Buy
402
369
79
676
490
480
110
775
22
30
40
15
11.1
14.9
-1.1
27.2
4.3
17.9
-10.9
8.7
6.6
20.4
-11.3
26.1
6.7
2.5
16.2 19.8
-1.6 -17.3
132.2 14.5
6.9
1.2
12 September 2017
15

Company
Reco
Coal India
Buy
CESC
Buy
JSW Energy
Sell
NTPC
Buy
Power Grid
Buy
Tata Power
Sell
Aggregate
Others
Arvind
Neutral
Avenue Supermarts Neutral
Bata India
Under Review
BSE
Neutral
Castrol India
Buy
Century Ply.
Neutral
Coromandel Intl
Buy
Delta Corp
Buy
Dynamatic Tech
Buy
Eveready Inds.
Buy
Interglobe
Neutral
Indo Count
Neutral
Info Edge
Buy
Inox Leisure
Sell
Jain Irrigation
Under Review
Just Dial
Neutral
Kaveri Seed
Buy
Kitex Garm.
Buy
Manpasand
Buy
MCX
Buy
Monsanto
Buy
Navneet Education Buy
PI Inds.
Buy
Piramal Enterp.
Buy
SRF
Buy
S H Kelkar
Buy
Symphony
Sell
Trident
Buy
TTK Prestige
Neutral
V-Guard
Neutral
Wonderla
Buy
CMP
(INR)
257
1,051
74
170
216
80
TP
% Upside
EPS (INR)
(INR) Downside FY17 FY18E FY19E
305
19
14.9 19.8
22.0
1,360
29
51.9 88.9
99.3
49
-34
3.8
3.4
2.7
204
20
13.0 13.3
16.3
262
22
14.2 17.4
20.6
68
-15
5.2
6.4
6.7
P/E (x)
P/B (x)
ROE (%)
FY17 FY18E FY17 FY18E FY17 FY18E FY19E
17.2 13.0
6.5
6.2
37.8 47.6 50.5
20.3 11.8
1.3
1.2
6.5
10.6 10.8
19.3 21.9
1.2
1.2
6.3
5.3
4.2
13.1 12.8
1.4
1.3
11.5 10.8 12.4
15.1 12.4
2.3
2.0
16.2 17.3 17.8
15.6 12.6
1.8
1.7
11.2 13.9 12.1
15.1 12.7
2.3
2.1
14.9 16.3 17.4
32.9
141.9
53.2
24.9
28.6
29.3
25.6
64.2
36.0
23.5
26.5
9.3
61.8
72.0
19.2
21.7
30.3
12.7
67.8
44.8
29.3
20.9
22.2
37.1
18.1
35.7
59.6
14.7
47.9
55.7
49.9
31.6
85.6
45.8
24.2
28.2
25.9
17.6
33.4
21.5
22.2
19.1
13.6
44.5
29.9
14.0
20.5
17.0
10.7
42.7
37.9
24.0
18.5
24.3
25.9
19.3
34.0
40.2
11.8
45.9
44.4
29.2
3.0
17.7
7.0
2.1
32.5
7.9
4.3
4.9
5.0
7.6
21.8
2.8
6.0
4.2
1.6
2.9
3.9
3.4
4.3
4.2
8.2
5.2
6.3
3.5
2.8
4.6
22.1
1.8
8.6
13.3
4.6
2.8
15.5
6.2
2.1
29.2
6.5
3.7
3.3
4.0
6.2
19.4
2.3
5.4
3.7
1.6
2.6
4.1
2.8
4.0
4.0
7.4
4.5
5.2
3.2
2.6
4.2
19.5
1.6
7.9
10.8
4.1
10.3
9.1
12.0
17.9 19.3 23.0
13.9 14.4 15.8
8.3
8.5
7.7
115.2 108.9 99.2
31.1 27.7 29.6
17.5 22.5 23.4
8.1
12.5 12.9
15.1 20.7 24.3
37.7 30.8 30.1
86.2 107.5 137.7
34.8 18.6 18.3
10.2 12.7 13.1
5.9
12.5 16.2
8.6
11.7 14.8
14.8 13.4 13.7
13.6 23.3 27.4
29.8 28.6 27.6
7.3
8.5
13.5
9.9
10.7 13.9
31.6 32.5 34.5
26.8 26.0 27.4
32.8 23.4 22.9
9.8
13.0 16.4
16.6 13.7 16.0
13.7 12.9 15.2
43.3 51.6 54.5
13.0 14.5 16.1
19.5 18.0 20.7
27.4 26.9 28.8
9.5
14.8 17.5
408
1,089
719
1,023
391
255
425
196
2,432
302
1,220
121
969
240
106
379
578
236
861
1,113
2,527
162
740
2,692
1,552
259
1,410
97
6,325
199
349
375
882
-
1,100
489
323
523
243
3,334
358
1,312
129
1,130
240
-
465
738
394
926
1,230
3,295
215
894
3,044
1,648
298
1,288
114
5,281
167
393
-8
-19
8
25
27
23
24
37
19
8
7
17
0
23
28
67
8
11
30
33
21
13
6
15
-9
17
-17
-16
13
12.4
7.7
13.5
41.0
13.6
8.7
16.6
3.1
67.6
12.9
46.0
13.0
15.7
3.3
5.5
17.5
19.1
18.6
12.7
24.8
86.2
7.8
33.4
72.6
85.9
7.2
23.7
6.6
132.1
3.6
7.0
12.9
12.7
15.7
42.2
13.9
9.8
24.1
5.9
112.9
13.6
63.9
8.9
21.8
8.0
7.6
18.5
34.0
22.1
20.2
29.4
105.1
8.7
30.4
104.1
80.2
7.6
35.1
8.3
137.8
4.5
11.9
18.6
17.6
19.4
44.6
14.0
12.9
29.0
8.1
166.7
16.3
93.7
10.8
24.7
12.0
10.0
21.1
41.0
26.2
30.9
40.7
126.7
10.8
35.8
144.6
103.0
9.9
42.9
10.4
176.1
6.0
16.0
12 September 2017
16

MOSL Universe stock performance
Company
Automobiles
Amara Raja
Ashok Ley.
Bajaj Auto
Bharat Forge
Bosch
CEAT
Eicher Mot.
Endurance Tech.
Escorts
Exide Ind
Hero Moto
M&M
Mahindra CIE
Maruti Suzuki
Tata Motors
TVS Motor
Banks - Private
Axis Bank
DCB Bank
Equitas Hold.
Federal Bank
HDFC Bank
ICICI Bank
IDFC Bank
IndusInd
J&K Bank
Kotak Mah. Bk
RBL Bank
South Indian
Yes Bank
Banks - PSU
BOB
BOI
Canara
IDBI Bk
Indian Bk
OBC
PNB
SBI
Union Bk
NBFCs
Bajaj Fin.
Bharat Fin.
Capital First
Cholaman.Inv.&Fn
Dewan Hsg.
GRUH Fin.
HDFC
Indiabulls Hsg
L&T Fin.Holdings
LIC Hsg Fin
Manappuram
M&M Fin.
Muthoot Fin
PFC
Repco Home
REC
STF
Shriram City Union
1 Day (%)
-1.4
1.1
0.6
1.4
0.5
1.6
-0.5
2.1
0.9
0.9
-0.3
-1.1
2.0
2.2
0.1
0.6
0.0
-0.4
0.1
1.4
2.0
-0.3
0.1
5.6
1.6
-0.1
0.1
0.7
3.0
0.6
1.2
0.6
-0.1
3.1
0.6
0.2
-0.4
1.5
1.4
3.3
0.3
1.8
1.0
-1.1
0.2
-0.9
0.6
-0.5
-0.2
1.1
3.0
2.6
0.5
1.0
0.5
-0.7
1M (%)
-2.0
13.4
5.1
1.3
-2.3
3.4
9.6
5.2
11.1
9.0
2.6
-4.9
3.9
9.3
0.3
19.2
0.7
7.5
10.4
7.0
4.1
1.4
5.7
10.2
10.0
1.5
9.3
10.1
5.8
-3.5
0.1
2.7
6.7
0.6
6.3
-1.4
-3.5
4.5
13.1
23.1
9.4
2.7
31.7
12.3
5.1
13.0
24.3
0.8
25.9
9.6
13.6
7.6
5.7
-0.4
11.1
-0.8
12M (%)
-22.9
33.3
-3.4
36.4
-8.7
69.1
41.5
79.2
16.1
8.9
-12.9
21.2
50.8
-34.5
93.7
-19.6
54.6
-5.1
54.1
41.2
16.8
-11.8
47.5
1.6
22.9
79.6
32.2
44.2
-20.0
16.0
10.3
-29.4
22.3
-3.8
-4.6
2.6
-10.8
66.7
24.2
12.4
6.3
83.2
64.5
26.3
63.4
114.9
12.5
20.3
27.7
37.7
1.6
-21.2
36.2
-13.4
-8.1
Company
Capital Goods
ABB
Bharat Elec.
BHEL
Blue Star
CG Cons. Elec.
CG Power & Inds Sol.
Cummins
GE T&D
Havells
K E C Intl
L&T
Pennar Eng.
Siemens
Solar Ind
Suzlon Energy
Thermax
Va Tech Wab.
Voltas
Cement
Ambuja Cem.
ACC
Birla Corp.
Dalmia Bharat
Grasim Inds.
India Cem
J K Cements
JK Lakshmi Ce
Ramco Cem
Orient Cem
Prism Cem
Shree Cem
Ultratech
Consumer
Asian Paints
Britannia
Colgate
Dabur
Emami
Godrej Cons.
GSK Cons.
HUL
ITC
Jyothy Lab
Marico
Nestle
Page Inds
Parag Milk
Pidilite Ind.
P&G Hygiene
Prabhat Dairy
United Brew
United Spirits
Healthcare
Alembic Phar
Alkem Lab
Ajanta Pharma
Aurobindo
Biocon
Cadila
Cipla
1 Day (%)
1.7
1.9
2.2
-0.1
-1.5
0.1
-0.4
-1.0
1.8
0.7
3.8
2.4
4.3
0.8
4.0
0.1
0.0
-0.1
1.3
0.2
0.5
1.6
1.9
0.8
0.0
-1.0
1.6
2.4
-0.9
0.2
0.9
2.8
0.2
-0.7
0.9
1.2
0.7
-1.3
1.0
0.5
4.8
-0.5
1.4
0.6
0.9
0.2
-0.7
-1.1
-0.7
1.8
0.3
1.6
-1.1
0.4
-1.5
-4.9
0.2
1M (%)
2.1
12.0
4.3
18.1
-5.1
15.4
2.2
6.0
8.3
12.1
7.4
5.1
4.7
1.0
9.8
1.6
0.1
3.6
8.3
2.1
5.6
10.4
16.4
4.6
0.4
-0.2
11.5
7.1
-1.8
7.3
6.0
8.1
4.9
9.6
2.4
5.8
2.9
-4.2
5.7
0.8
10.7
1.3
11.6
17.0
5.0
7.2
4.6
2.1
-1.1
6.9
-2.2
6.0
-3.7
5.1
-0.9
-1.2
1.7
12M (%)
15.0
58.5
-15.2
55.2
28.6
6.4
-2.5
24.6
19.0
141.7
20.1
-34.4
3.7
37.3
-6.4
3.6
9.3
37.7
4.6
8.7
53.1
52.6
56.6
23.7
28.9
-11.5
25.5
-17.0
-0.8
8.1
4.9
5.6
24.5
16.7
5.5
-5.0
12.3
-16.7
31.1
5.8
27.8
9.9
12.1
26.3
-26.2
19.0
26.1
44.1
-4.6
11.5
-21.1
12.8
-39.5
-7.7
11.4
22.6
-5.1
12 September 2017
17

MOSL Universe stock performance
Company
Divis Lab
Dr Reddy’s
Fortis Health
Glenmark
Granules
GSK Pharma
IPCA Labs
Jubilant Life
Lupin
Sanofi India
Shilpa Medicare
Strides Shasun
Sun Pharma
Syngene Intl
Torrent Pharma
Logistics
Allcargo Logistics
Blue Dart
Concor
Gateway Distriparks
Gati
Transport Corp.
Media
Dish TV
D B Corp
Den Net.
Ent.Network
Hind. Media
HT Media
Jagran Prak.
Music Broadcast
PVR
Siti Net.
Sun TV
Zee Ent.
Metals
Hindalco
Hind. Zinc
JSPL
JSW Steel
Nalco
NMDC
SAIL
Vedanta
Tata Steel
Oil & Gas
BPCL
GAIL
Gujarat Gas
Gujarat St. Pet.
HPCL
IOC
IGL
MRPL
Oil India
ONGC
PLNG
Reliance Ind.
Retail
Jubilant Food
Titan Co.
1 Day (%)
1.8
0.0
-0.2
-1.6
-0.3
-1.0
11.9
-0.5
1.0
1.3
-2.5
2.2
-0.5
-1.5
-1.2
1.2
-1.3
3.4
3.2
-0.3
2.7
2.0
0.5
-1.1
-3.7
-1.5
-1.4
-0.1
2.1
-1.5
0.0
2.7
0.0
0.3
1.4
0.8
1.3
2.4
0.3
0.1
0.2
0.9
-0.2
4.0
-0.9
2.2
0.6
0.1
0.6
2.0
5.2
0.9
5.8
0.1
5.1
0.1
1M (%)
14.8
7.4
1.5
-7.4
12.6
2.8
14.3
2.0
3.8
-2.4
5.9
7.6
3.8
5.8
-1.5
5.8
7.5
21.4
-11.6
9.9
5.1
8.4
2.8
10.6
5.4
-0.2
19.6
2.6
11.4
5.1
2.6
17.1
2.6
13.2
14.0
12.3
18.9
32.6
14.8
11.6
18.3
10.9
5.8
6.8
6.2
9.4
8.5
3.9
13.7
15.2
18.3
2.0
11.8
5.8
12.0
4.2
12M (%)
-45.6
-32.4
-14.1
-36.2
-2.1
-18.7
-19.9
21.8
-37.7
-8.2
10.8
-4.3
-41.2
-1.4
-28.1
-11.6
-25.5
28.1
-22.8
-17.8
53.3
-19.6
-7.1
18.9
5.4
-9.1
18.8
-8.0
10.0
-28.1
74.5
-2.5
61.6
40.0
68.3
45.8
67.7
21.8
24.6
92.1
67.6
30.6
33.1
30.6
25.3
67.4
52.0
81.8
61.4
10.2
-3.7
35.4
56.8
34.9
49.3
Company
Technology
Cyient
HCL Tech.
Hexaware
Infosys
KPIT Tech
L&T Infotech
Mindtree
Mphasis
NIIT Tech
Persistent Sys
Tata Elxsi
TCS
Tech Mah
Wipro
Zensar Tech
Telecom
Bharti Airtel
Bharti Infratel
Idea Cellular
Tata Comm
Utiltites
Coal India
CESC
JSW Energy
NTPC
Power Grid
Tata Power
Others
Arvind
Avenue Super.
Bata India
BSE
Castrol India
Century Ply.
Coromandel Intl
Delta Corp
Dynamatic Tech
Eveready Inds.
Interglobe
Indo Count
Info Edge
Inox Leisure
Jain Irrigation
Just Dial
Kaveri Seed
Kitex Garm.
Manpasand
MCX
Monsanto
Navneet Educat.
PI Inds.
Piramal Enterp.
SRF
S H Kelkar
Symphony
Trident
TTK Prestige
V-Guard
Wonderla
1 Day (%)
-1.0
0.1
0.0
-0.7
1.5
-1.3
0.6
1.2
0.4
-1.0
1.8
-0.3
2.4
0.3
-0.8
-0.3
-0.4
-1.4
1.9
1.0
0.9
2.5
1.7
1.1
4.5
0.4
1.9
3.9
2.8
-0.3
0.5
0.9
4.2
0.0
-2.5
-0.3
2.8
-0.9
-0.9
3.4
0.0
-0.3
0.1
3.2
0.7
-1.5
0.0
1.4
-0.1
0.2
-1.4
5.7
-0.2
-1.2
-0.5
-0.3
1M (%)
6.9
-1.3
7.0
-11.1
4.4
4.2
-2.3
6.4
4.0
-0.4
12.2
-1.2
9.3
3.9
0.6
-3.1
-3.5
-8.8
16.0
8.9
14.3
15.6
0.8
-1.5
5.0
11.6
22.4
12.9
2.6
4.2
0.1
4.4
19.5
13.7
0.8
-2.0
4.9
1.4
3.9
16.2
11.0
10.1
3.1
8.9
6.9
1.3
6.7
6.6
-0.7
4.6
3.7
16.0
29.5
1.3
14.8
3.2
12M (%)
14.7
10.7
34.3
-15.2
-12.3
19.2
-14.7
13.7
23.6
-1.8
17.6
4.7
-3.9
25.4
-23.8
24.8
4.9
-5.9
32.0
-22.6
63.7
-9.7
7.3
17.3
4.3
25.6
32.5
-16.9
11.9
65.3
28.2
-18.6
8.6
41.4
-24.8
17.1
-12.5
14.8
-22.3
63.8
-29.5
16.7
16.6
7.9
54.8
-11.9
43.6
-9.5
-17.7
20.1
90.9
30.6
49.8
-14.0
12 September 2017
18

THEMATIC/STRATEGY RESEARCH GALLERY

REPORT GALLERY
RECENT INITIATING COVERAGE REPORTS
Rs

DIFFERENTIATED PRODUCT GALLERY

Disclosures:
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Securities Ltd. (MOSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock
broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed
public company, the details in respect of which are available on
www.motilaloswal.com.
MOSL is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock
Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Metropolitan Stock Exchange Of India Ltd. (MSE) for its stock broking activities & is Depository participant with Central Depository Services Limited
(CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Pending Regulatory Enquiries against Motilal Oswal Securities Limited by SEBI:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold
inquiry and adjudge violation of SEBI Regulations; MOSL requested SEBI to provide all documents, records, investigation report relied upon by SEBI which were referred in Show Cause Notice and also sought personal
hearing. The matter is currently pending.
MOSL, it’s associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have beneficial ownership of 1% or more securities in
the subject company at the end of the month immediately preceding the date of publication of the Research Report.
MOSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from
time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn
brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential
conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the
recommendations made by the analyst(s) are completely independent of the views of the associates of MOSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research
report.
Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. MOSL and/or its associates may have received any compensation from the subject company in the past
12 months.
In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have:
a)
managed or co-managed public offering of securities from subject company of this research report,
b)
received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
c)
received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
d)
Subject Company may have been a client of MOSL or its associates during twelve months preceding the date of distribution of the research report.
MOSL and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report. To enhance transparency, MOSL has incorporated a Disclosure
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copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOSL. The report is based on the facts, figures and information that are considered
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been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice.
The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for the clients. Though
disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOSL will not treat recipients as customers by virtue of their receiving this report.
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The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or
indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
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Analyst ownership of the stock
Companies where there is interest
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A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and Technical Research. Proprietary
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pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with
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investment or investment activity to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities,
products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research
Analysis in Hong Kong.
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Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOSL is
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Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services described herein are not available to or intended for U.S.
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investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional
investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and
interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOSL has entered into a chaperoning agreement with a U.S.
registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL, and
therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
For Singapore
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations and is a
subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors, as defined in
the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time. In respect of any matter arising from or in connection with the research you could contact the following
representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person
or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an offer document or solicitation of
offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or
appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document should make such investigations
as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to
determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative
products as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the
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
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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
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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:
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Contact No.:022-30801085.
Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;
MSE(F&O): INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset
Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth
management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities
Products. * Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
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