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Strategy: India's Best and Worst Capital Allocators
Strategy: India's Best and Worst Capital Allocators
Strategy
THEMATIC
Analyst contacts
Saurabh Mukherjea, CFA
Tel: +91 22 3043 3174 saurabhmukherjea@ambitcapital.com
Gaurav Mehta
Tel: +91 22 3043 3255 gauravmehta@ambitcapital.com
PE Premium
Exhibit C: The only sectors with RoA increase across the FY06-11 period
Sector Packaging Entertainment Mining & Mineral products Paints/Varnish Plastic products Media - Print/Television/Radio Banks
Source: Capitaline, Ambit Capital research
Ambit Capital and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, investors should be aware that Ambit Capital may have a conflict of interest that could affect the objectivity of this report. Investors should not consider this report as the only factor in making their investment decision.
We calculate the average RoA in phases 1 and 2 for BSE500 companies. That then allows us to calculate the change in RoA across Phase 1 & 2. This comparison of RoA across phases 1 & 2 throws up several investment implications which the rest of this note delves into: In this section we show the link between RoA and share price returns. In section 2 (on page 4) we analyse why RoA is on a secular downtrend in India. Section 3 (on page 10) looks at the persistence in RoA patterns across sectors i.e. sectors which are good at generating RoA tend to remain so. Stocks, however, do not display persistence to such an extent. Sections 4-9 (on page 12-28) then focus on specific sectors. We rank the stocks in each sector based on their change in RoA across the two phases. We then construct a pair trade for each sector using stocks with diametrically opposite RoA profiles. The intent is to build pairs which investors can use to generate returns for investors without exposing them to market risk.
The link between RoA and shareholder returns In the table below we have broken the BSE500 into five quintiles based on individual stocks change in RoA between the two phases. Quintile 1 consists of the stocks with the biggest improvement in RoA and Quintile 5 contains the stocks with the lowest improvement (or the sharpest drop) in RoA.
Exhibit 1: RoA change (Phase 1 vs Phase 2) and the link to market performance
Quintile 1 2 3 4 5 Average Investment Returns 162% 114% 126% 39% 11% Median Investment Returns 64% 18% 22% -8% -7%
Source: Ambit Capital research Note: Returns are measured over Mar 31, 2008 to Mar 31, 2011 period
As the table above shows, whether we use average returns or median returns, investment returns drop gradually as we move from Quintile 1 towards Quintile 5.
Strategy: Indias best and worst capital allocators Exhibit 2: RoE change (Phase 1 vs Phase 2) and the link to market performance
Bucket 1 2 3 4 5 Average Investment Returns 260% 126% 20% 34% 12% Median Investment Returns 84% 32% 13% 10% -28%
Source: Ambit Capital research. Note: Returns are measured over Mar 31, 2008 to Mar 31, 2011 period
Just as Exhibit 1 focuses on showing the link between RoA and investment returns, Exhibit 2 shows the link between ROE and investment returns. Clearly, both ROE and RoA have a significant impact on investment returns. However, in the majority of this note we focus on RoA for two reasons: RoA strips out the impact of capital structure. Hence by focusing on RoA we make it harder for companies which have used more gearing to outshine companies which have used less gearing. As the next section of the note shows, our analysis shows that gearing has not changed significantly in India between Phases 1 and 2. Hence the correlation between companies with high RoA and high ROE is relatively high - 0.85 and 0.87 respectively for Phases 1 and 2 at a sector level (We remove Air Transport from our analysis because even though this sectors PAT remains negative through the entire period, the equity values turn negative in the second phase thereby resulting in a positive RoE number which is meaningless.)
FY06
FY07
FY08 Year
FY09
FY10
FY11
Before we enter sector specific analysis, in this section we explore the drivers of this secular downtrend. Exhibit 7 on the next page - which uses Dupont analysis to breakdown RoA into PAT Margin and Asset Turnover - shows that of the two factors, a reduction in Asset Turnover has been the bigger driver. Even more worryingly for investors in Indian Equities, other Emerging Markets have not seen this sort of RoA drop MSCI EMs RoA fell by only 9% between the two phases as opposed to the 27% drop seen for India (see table on the next page). Comparing India and MSCI EM RoA over the last six years highlights Indias relatively steeper decline more clearly (see chart below). This RoA decline is all the more worrisome for investors in the Indian market because it raises questions about the sustainability of the current 40% premium that India enjoys over MSCI EM on a P/E basis.
RoA
premium
over
MSCI
EM
Exhibit 6: raising questions about the P/E premium that India enjoys over MSCI EM
120% 100% 80% 60% 40% 20% 0% Jan-05 May-05 Sep-05 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11
FY08
FY10
PE Premium
Strategy: Indias best and worst capital allocators Exhibit 7: RoA Declining (Phase 1 vs Phase 2)
RoA 12.6% % chg 9.3% -3.4% -27% PAT Margin 10.7% 9.4% -1.3% -12% Asset Turnover 1.18 0.98 -0.20 -17% Phase 1 Phase 2 Change Phase 1 Phase 2 Change Phase 1 Phase 2 Change
Note: Phase 1 here is the FY06-08 average while Phase 2 is the FY09-FY11 average Source: Capitaline, Ambit Capital research; please note that the above table if for BSE500 universe exFinancials
Exhibit 8 (which uses Dupont analysis to breakdown ROE into PAT Margin, Asset Turnover and Equity: Asset ratio) shows that PAT margin reduction and Asset Turnover reduction have been by far the bigger drivers of ROE decline (compared to a small decline in the Equity: Asset ratio).
Exhibit 8: RoE Declines (Phase 1 vs Phase 2)
RoE 20.1% % chg 15% -5.1% -25% PAT Margin 10.7% 9.4% -1.3% -12% Asset Turnover Phase 1 1.18 Phase 2 0.98 -0.20 -17% Eq to Asset Ratio Change Phase 1 Phase 2 Change 62.8% 62.2% -0.6% -1% Phase 1 Phase 2 Change Phase 1 Phase 2 Change
Source: Capitaline, Ambit Capital research; please note that the above table if for BSE500 universe ex-Financials
So what has led to a PAT margin drop by 130bps over this period? And why has Asset Turnover dropped by 17% over this period? To understand this better, we turn next to sectors that have contributed to declines in each of these two parameters. Focusing first on PAT margin decline, Exhibit 11 points towards three interesting points: Overcapacity: A number of sectors in Exhibit 11 Shipping, Textiles, Cement, Steel, Telecom Services - have become characterized by either global or local overcapacity (eg. Shipping and Textiles have been hit more by global overcapacity whereas Telecomm Services and Cement have been hit more by local overcapacity). Foreign entry into India: Some sectors in Exhibit 11 Capital Goods, Consumer Durables, Agro Chemicals have seen rapid foreign entry over the last 3-4 years particularly from Chinese and Korean firms. Indian firms have found it particularly hard to hold their ground in the face of rising foreign competition (see table below).
Exhibit 9: Positioning of global players in their respective segments in the Indian consumer durables market (from our recent thematic No Juicy Apples)
Company Nokia Samsung (Electronics) LG Sony Suzuki Unilever Colgate Reckitt Benckiser India Sales (USD bn) 3.9 3.54 2.91 1.27 6.24 3.9 0.44 0.44 India as % of global sales 6.6% 3.4% 5.9% 1.4% 23.3% 6.6% 2.8% 3.3% Rank in the Indian market 1 2 1 4 1 1 1 1
Note: Data refers to CY10 for Global and Asia Sales and FY10 for Indian Sales; Source: Bloomberg, Company, Ambit Capital research
Rising cost of capital: A number of the sectors named on the next page have been capital hungry sectors Capital Goods, Non Ferrous Metals, Steel, Power Generation & Distribution have been highly capital consumptive sectors in a country with rising cost of capital (see chart below).
Strategy: Indias best and worst capital allocators Exhibit 10: Indian banks' lending rates amongst the highest in the EM universe (from our Economy piece titled India Inc needs affordable capital)
Exhibit 11: Top Sectors with declining PAT Margins (Phase 1 vs Phase 2)
Sector Shipping Hotels & Restaurants Miscellaneous Cement Non Ferrous Metals Capital Goods - Electrical Equipment Textiles Consumer Durables Gas Distribution Agro Chemicals Auto Ancillaries Power Generation & Distribution Castings, Forgings & Fastners Steel Telecomm-Service Fertilizers IT - Hardware
Source: Capitaline, Ambit Capital research
PAT Margin Change -13.4% -8.1% -5.7% -4.4% -3.9% -3.3% -3.2% -3.2% -2.9% -2.3% -1.9% -1.9% -1.9% -1.7% -1.7% -1.7% -1.5%
Strategy: Indias best and worst capital allocators Exhibit 12: Top Sectors on Asset Turnover decline (Phase 1 vs Phase 2)
Sector Automobile Diversified Refineries Capital Goods-Non Electrical Equipment Non Ferrous Metals Steel Realty Construction Capital Goods - Electrical Equipment Cement Logistics IT - Software Auto Ancillaries Hotels & Restaurants Shipping Computer Education Telecomm-Service Chemicals Plastic products
Source: Capitaline, Ambit Capital research
Turnover Change (0.59) (0.45) (0.42) (0.37) (0.36) (0.32) (0.30) (0.24) (0.22) (0.21) (0.19) (0.18) (0.18) (0.18) (0.15) (0.12) (0.11) (0.11) (0.10)
Moving on to Asset Turnover decline, Exhibit 12 points to a number of interesting points: Inability to sweat fresh capex The table above has a number of sectors where we have seen heavy capex over the last 3-4 years Auto, Steel, Nonferrous metals, Capital Goods, Refineries, Realty but the returns from such capex have been elusive either because of overcapacity (Auto, Steel, Metals, Realty) or because the economic environment has not been particularly conducive over the last three years (Capital Goods).
Exhibit 13: Sectors with the highest increase in assets (% increase Phase 2 vs Phase 1)
Sector Ship Building Computer Education Healthcare Realty Infrastructure Developers & Operators Construction Entertainment Cement Automobile Steel Non Ferrous Metals Telecomm-Service Hotels & Restaurants IT - Software Plastic products Finance Retail
Source: Capitaline, Ambit Capital research.
Asset Increase 207% 193% 171% 169% 155% 150% 123% 115% 108% 108% 97% 97% 95% 94% 92% 92% 91%
Foreign acquisitions In some of these sectors Auto, Steel, Non-ferrous metals Indian firms have been notable acquirers of large foreign assets (see table below) which have had lower asset turnover ratios.
Strategy: Indias best and worst capital allocators Exhibit 14: Key acquisitions by Indian firms- Materials and Automobiles
Acquirer Materials Tata Steel Ltd Hindalco Industries Ltd JSW Steel Ltd Kohinoor Foods Ltd Essar Global Ltd Tata Chemicals Ltd Automobiles Tata Motors Ltd Hero Motocorp Ltd Mahindra & Mahindra Ltd Eicher Motors Ltd
Source: Bloomberg
Target
Announcement Date
Announced Total Value (USDmn) 12,780 5,706 1,972 1,432 1,421 1,005
Corus Group Ltd Novelis Inc/GA JSW ISPAT Steel Ltd Nagarjuna Fertilizers & Chemicals Essar Steel Algoma Inc General Chemical Industrial Products Inc
Jaguar Land Rover Operations Hero Motocorp Ltd Ssangyong Motor Co Volvo AB
In light of the challenges highlighted above (around maintaining PAT margins and Asset Turnover) it is not surprising that the sectors whose RoAs fell the most across these two phases are as follows: Shipping, Non Ferrous Metals, Realty, Capital Goods, Cements, Hotels, Steel, Auto and IT - Software (see Exhibit 15).
Exhibit 15: Top Sectors with RoA decline
Sector Non Ferrous Metals Shipping Capital Goods - Electrical Equipment Realty Cement Steel Hotels & Restaurants Automobile Capital Goods-Non Electrical Equipment IT - Software Average Median RoA Change -9.8% -8.4% -8.0% -7.7% -6.8% -5.7% -5.6% -5.0% -5.0% -4.3% -7% -6% PAT Margin Change -3.9% -13.4% -3.3% 1.3% -4.4% -1.7% -8.1% -0.2% -0.7% -0.1% -3% -3% Asset Turnover Change (x) (0.36) (0.15) (0.22) (0.30) (0.21) (0.32) (0.18) (0.59) (0.37) (0.18) -29% -26% Share Price Performance* 27% -36% -23% -66% -6% 4% -27% 117% 20% 105% 12% -1%
Source: Ambit Capital research.* Share price performance as calculated from Mar 31st 2008 to Mar 31st 2011.
If we focus now on the other end of the RoA spectrum on sectors which have shown an RoA improvement across the two periods see table below we find that these sectors have, by and large, shown PAT margin and asset turnover improvements.
Strategy: Indias best and worst capital allocators Exhibit 16: The only sectors with RoA improvements across the two phases
Sector Packaging Entertainment Mining & Mineral products Paints/Varnish Plastic products Media - Print/Television/Radio Banks Average Median RoA Change 1.8% 1.8% 1.6% 1.3% 0.3% 0.2% 0.0% 1% 1% PAT Margin Change 2.3% 4.0% 0.7% 0.5% 1.0% -0.7% 0.4% 1% 1% Asset Turnover Change (x) 0.02 (0.01) 0.02 (0.02) (0.10) 0.07 (0.00) (0.0) (0.0) Share Price Performance* -21% 6% -10% 105% 26% -27% 77% 22% 6%
Source: Capitaline, Ambit Capital research. * Share price performance as calculated from Mar 31st 2008 to Mar 31st 2011.
So why have the sectors shown in the table above been able to improve their RoAs? Relatively few acquisitions: Very few Indian firms in the sectors shown above embarked upon global acquisitions. Capex light: The sectors shown in the table above are relatively capex light (with the exception of Mining, which has shown negative shareholder returns and Banks, which has clocked negligible change in RoA). Hence their PAT margins have not been impacted meaningfully by the rising cost of capital in India.
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At the stock level, however, the picture is very different. The correlation for stocklevel RoAs across two periods is a mere 53% suggesting that sector level RoA is far more stable across time than stock level RoA. The same point also emerges from regression analysis see table below.
Exhibit 18: Regression Results (Phase 2 over Phase 1)
Sector Level Correlation Coefficient R Square
Source: Ambit Capital research
0.82 0.68
Continuing on this thread, we show in the table below that variability of return on asset ratios across sectors is lower than within sectors i.e. RoAs fluctuate more WITHIN A SECTOR THAN ACROSS SECTORS.
Exhibit 19: Variability in RoAs: Across and within sectors
Coefficient of Variation* Phase 1 Phase 2 Across Sectors 0.69 0.72 Within Sector 1.47 1.46
These two points (a) sectoral RoAs are more stable than stock level RoAs across time; and (b) at a point in time, variability in RoAs is greater within a sector than across sectors have important investment implications: Firstly, this suggests that the first investment call should be on the sector as, from a RoA perspective, it is a more stable unit of analysis than individual stocks are. Secondly, once we are within sectors, making a call on RoA at the stock level is a tricky affair. Hence investors need to use tools such as our forensic accounting model to identify high quality companies within their chosen sectors. Our forensic accounting model ranks BSE500 stocks in each sector into four quartiles quartile A is the 25% of stocks with the best accounting quality and quartile D is the worst 25% of stocks from an accounting quality perspective. In a note dated 9th May, 2011, we showed that companies with better accounting quality have generated superior stock market performance across 1, 3 and 5 years across a variety of metrics. Moreover, this flight to quality has been especially more stark in the last three year period.
Analysing RoA within sectors In the sector specific sections which follow we look at cross-cycle RoA performance for the constituents of each sector and thereby identify the best and worst RoA performers inside each sector. You might want to think of these companies as Indias best and worst capital allocators over the past six years given that they are being compared to their closest listed peers on a like-for-like basis across a lengthy period of time. We then structure pair trades around our expectation of how RoA will evolve going forward for specific companies. Given the high variability in RoA across stocks in a specific sector, our pair trade strategies fall under two broad categories: Momentum pair trades: Here we go long (short) on the firm which has outperformed (underperformed) its sectoral peers on RoA over the past 6 years. We have momentum pair trades in two sectors- Construction, Banks. Mean reverting pair trades: Here we go long (short) on the firm which has UNDERperformed (OUTperformed) its sectoral peers on RoA over the past 6 years. We have mean reverting pair trades in the following sectors- FMCG, Automobiles, Information Technology, Capital Goods (Electrical Equipment).
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Section 4: Construction
With the exception of EIL, a consulting firm, no other firm in this sector has been able to improve its RoA between Phase 1 and Phase 2.
Exhibit 20: Construction- How they stack up on RoA Changes
Firm Name Engineers India Punj Lloyd Era Infra Engg. Simplex Infra Larsen & Toubro Gammon India Sadbhav Engg. Hind.Construct. NCC IVRCL Patel Engg. CCCL Bloom Ticker ENGR IN EQUITY PUNJ IN EQUITY ERIE IN EQUITY SINF IN EQUITY LT IN EQUITY GMON IN EQUITY SADE IN EQUITY HCC IN EQUITY NJCC IN EQUITY IVRC IN EQUITY PEC IN EQUITY CCCL IN EQUITY Mkt Cap RoA RoA RoA Phase 1 RoA RoA (USD mn) 2006 2007 2008 Average 2009 2010 2,745 477 889 497 22,368 673 358 490 295 577 981 705 208 311 16% 2% 8% 6% 17% 10% 8% 6% 21% 7% 8% 11% 11% 9% 13% 2% 7% 6% 18% 3% 12% 1% 22% 7% 8% 9% 15% 16% 17% 6% 6% 6% 17% 5% 12% 4% 28% 7% 8% 9% 15% 11% 15% 4% 7% 6% 17% 6% 11% 4% 24% 7% 8% 10% 14% 12% 25% 6% 8% 6% 18% 6% 11% 4% 23% 5% 7% 7% 10% 4% 39% 5% 7% 5% 17% 4% 7% 2% 22% 6% 6% 4% 10% 6% RoA Phase 2 2011 Average 39% 0% 0% 0% 14% 0% 10% 1% 0% 3% 4% 0% 5% 6% 34% 4% 7% 6% 16% 5% 9% 2% 22% 5% 6% 6% 8% 5% RoA Change 19% 0% 0% 0% -1% -1% -1% -1% -2% -2% -2% -4% -6% -7% In Top Half on Accounting? YES YES NO NO YES NO NO NO YES YES NO NO NA NA
As the table below shows, the driver for lower RoA in this sector has been a reduction in PAT margin and a reduction in Asset Turnover.
Exhibit 21: Construction- Deconstructing RoA (Change from Phase 1 to Phase 2)
Firm Absolute* Sector Relative* Profit Asset Profit Asset RoA RoA Margin Turnover Margin turnover Change Change Change Change Change change
19% 0% 0% 0% -1% -1% -1% -1% -2% -2% -2% -4% -6% -7% -2% 0% -1% -1% 3% -1% 0% -1% 0% -1% -2% -4% -2% -6% 0.99 (0.05) 0.08 0.20 (0.60) 0.06 (0.20) (0.09) (0.36) (0.24) 0.20 (0.25) (0.36) (0.16) 19% 0% 0% -1% -1% -1% -1% -2% -2% -2% -2% -4% -6% -7% -3% -1% -2% -1% 2% -2% -1% -2% -1% -1% -3% -4% -2% -6% 1.07 0.04 0.16 0.29 -0.51 0.15 -0.11 -0.00 -0.28 -0.15 0.29 -0.16 -0.28 -0.07
Firm Name
Engineers India Punj Lloyd Era Infra Engg. Simplex Infra Larsen & Toubro Gammon India Sadbhav Engg. Hind.Construct. Ahluwalia Contr. NCC IVRCL Patel Engg. CCCL
Bloom Ticker
ENGR IN EQUITY PUNJ IN EQUITY ERIE IN EQUITY SINF IN EQUITY LT IN EQUITY GMON IN EQUITY SADE IN EQUITY HCC IN EQUITY AHLU IN EQUITY NJCC IN EQUITY IVRC IN EQUITY PEC IN EQUITY CCCL IN EQUITY
Source: Capitaline, Ambit Capital research * The Firm absolute figures here indicate the changes in RoA, Profit Margin and Asset Turnover for the firm in absolute terms from Phase 1 to Phase 2 while the Sector Relative changes highlight the same measures for the firm relative to the sector. The figures here are as sourced from Capitaline and may differ somewhat from the bottom up numbers of our sector leads.
In light of EILs positive RoA trend and IVRCLs negative RoA trend, we focus on our long-short trade on this pair.
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Analyst: Nitin Bhasin nitinbhasin@ambitcapital.com Tel: +91 22 3043 3241 Analyst: Chhavi Agarwal chhaviagarwal@ambitcapital.com Tel: +91 22 3043 3203
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Average EBITDA margins declined to 9.3% over FY2009-2011(9.6% over FY2006-2008) as moderate revenue growth resulted in low fixed overhead costs absorption. High interest costs compounded the impact on net margins, pulling them lower to 2.8% in FY2011 from 5.1% in FY2008. Increasing investments in the BOT assets (Rs6.3bn invested in subsidiaries over FY2208-11) and rising working capital requirements, increased the Debt:Equity to 1.0X in FY2011 from 0.5X in FY2008. At the end of FY2011, nearly 30% of the capital employed was invested in BOT assets, mainly in IVRAH which owns underperforming road BOT assets and stalled real estate projects. Execution delays in the slow moving orders increased working capital requirements hence capital employed turnover declined to 2.0X in FY2011 from 2.3X in FY2008. IVRCLs order book at the end of June 2011 is Rs237bn and captive orders (road) continue to account for 20%~25% of the order book. Given that captive orders are slow moving due to the lack of availability of capital, we expect revenue growth to be only ~10%-12% in FY2011. IVRCL continues to face execution issues and revenue grew by only 2% YoY in 1QFY12. Despite revenue growth picking up over next couple of years, we expect high leverage costs to keep PAT margins low. IVRCL has to invest ~Rs1.8bn in BOT road projects in FY2012 and post that another Rs6bn over the next three years. Given that IVRCL does not generate positive cash flows, we believe IVRCL will have to raise debt in order to fund its BOT aspirations. We expect debt-equity to increase to 1.3X in FY2012 from the current level of 1.0X. A large amount of incremental capital will be invested in businesses which will not add to net margins in the near-term. Rising working capital requirements in FY12, increasing BOT equity infusions and declining net earnings margins will keep RoAs at low levels. We expect RoA to decline by another 100bps over next couple of years.
Price Ratio
Exhibit 22: ENGR over IVRC- Parabolic outperformance; expect trend to continue
9.20 8.20 7.20
6.20 5.20 4.20 3.20 2.20 1.20 0.20 Mar/06 Mar/07 Mar/08 Mar/09 Mar/10 Mar/11 Jul/05 Jul/06 Jul/07 Jul/08 Jul/09 Jul/10 Nov/05 Nov/06 Nov/07 Nov/08 Nov/09 Nov/10 Jul/11
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Section 5: FMCG
Inspite of FMCGs obvious cash generative qualities and inspite of its robust profit margins, the majority of firms in this sector have seen their RoAs fall between Phase 1&2 as rising competition and overseas acquisitions take their toll.
Exhibit 23: FMCG- How they stack up on RoA Changes
Firm Name Colgate-Palm. Zydus Wellness Nestle India ITC REI Agro Kwality Dairy Jyothy Lab. P & G Hygiene Marico Tata Global Emami Britannia Inds. Gillette India Dabur India Bloom Ticker CLGT IN EQUITY ZYWL IN EQUITY NEST IN EQUITY ITC IN EQUITY REIA IN EQUITY KLD IN EQUITY JYL IN EQUITY PG IN EQUITY MRCO IN EQUITY TGBL IN EQUITY HMN IN EQUITY BRIT IN EQUITY GILL IN EQUITY DABUR IN EQUITY Mkt Cap (USD mn) 2,463 519 8,132 2,162 31,202 349 558 274 1,446 1,894 1,343 1,345 984 1,254 3,715 2,628 RoA RoA RoA Phase 1 RoA 2006 2007 2008 Average 2009 50% 15% 78% 23% 24% 6% 10% 18% 51% 20% 13% 13% 26% 0% 40% 150% 56% 139% 21% 25% 25% 5% 11% 18% 31% 33% 13% 26% 17% 40% 60% 59% 19% 25% 25% 4% 8% 16% 38% 24% 12% 28% 22% 28% 58% 52% 98% 113% RoA RoA Phase 2 RoA 2010 2011 Average Change 121% 40% 104% 28% 28% 3% 7% 15% 37% 23% 9% 18% 17% 24% 43% 27% 40% 22% 8% 4% 3% -2% -2% -3% -3% -3% -3% -4% -5% -10% -10% -60% In Top Half on Accounting? NO YES YES YES YES YES NO NA NO YES NO NO YES NO YES NO
82% 131% 128% 105% 18% 24% 25% 5% 10% 17% 40% 26% 13% 23% 22% 34% 53% 87% 35% 26% 23% 2% 8% 11% 41% 21% 6% 12% 21% 23% 42% 27% 45% 96% 31% 29% 3% 7% 20% 34% 25% 15% 19% 14% 24% 50% 30% 42% 0% 0% 31% 4% 0% 13% 0% 22% 7% 25% 16% 0% 35% 24% 96% 113%
Source: Capitaline, Ambit Capital research * The Firm absolute figures here indicate the changes in RoA, Profit Margin and Asset Turnover for the firm in absolute terms from Phase 1 to Phase 2 while the Sector Relative changes highlight the same measures for the firm relative to the sector. The figures here are as sourced from Capitaline and may differ somewhat from the bottom up numbers of our sector leads.
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ColPal has been the RoA star across the two phases although we note that its RoA uplift in FY08 was mainly driven by a reduction in share capital as a result of its move to return cash to shareholders. At the other extreme, GCPLs RoA has been dragged down from FY09 onwards due to its several acquisitions which have progressively led to lowering of RoA as against the high RoA legacy portfolio.
Analyst: Vijay Chugh vijaychugh@ambitcapital.com Tel: +91 22 3043 3054 Analyst: Ashvin Shetty, ashvinshetty@ambitcapital.com Tel: +91 22 3043 3285
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Strategy: Indias best and worst capital allocators Exhibit 25: BRIT over ZYWL (Longer Term)- RoA improvements have led to BRIT underperforming ZYWL massively
5.20 4.70 4.20 3.70 3.20 2.70 2.20 1.70 1.20 0.70 0.20 Mar/06 Mar/07 Mar/08 Mar/09 Mar/10 Nov/05 Nov/06 Nov/07 Nov/08 Nov/09 Nov/10 Mar/11 Jul/05 Jul/06 Jul/07 Jul/08 Jul/09 Jul/10 Jul/11
Exhibit 26: BRIT over ZYWL (Shorter Term)- Signs of bottom formation- Reinforcing our forward looking hypothesis on reversion
1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.70 0.60 0.50 0.40 Jan/10 Mar/10 May/10
Jun/10
Jan/11
Mar/11
Sep/10
May/11
Feb/10
Aug/10
Nov/10
Jun/11
Apr/10
Jul/10
Aug/11
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Dec/09
Feb/11
Apr/11
Dec/10
Oct/10
Jul/11
Section 6: Automobiles
Maintaining the pattern seen in the preceding sections, the majority of Auto firms have seen their RoA drop over the last 6 years. However, thanks to burgeoning demand in India, PAT margins have held up for most of the Auto companies.
Exhibit 27: Automobiles- How they stack up on RoA Changes
Firm Name Bajaj Auto Hero Motocorp Escorts TVS Motor Co. M&M Maruti Suzuki Eicher Motors Ashok Leyland Tata Motors Bloom Ticker BJAUT IN EQUITY HH IN EQUITY ESC IN EQUITY TVSL IN EQUITY MM IN EQUITY MSIL IN EQUITY EIM IN EQUITY AL IN EQUITY TTMT IN EQUITY Mkt Cap (USD mn) 9,387 8,621 506 9,531 9,092 738 1,682 17,594 RoA RoA RoA 2006 2007 2008 0% 44% 1% 23% 22% 35% 16% 18% 0% 33% 0% 21% 21% 10% 17% 18% 26% 31% 1% 16% 19% 10% 15% 14% Phase 1 RoA RoA RoA Average 2009 2010 2011 26% 36% 1% 20% 20% 18% 16% 17% 19% 33% 5% 9% 12% 9% 3% 4% 40% 63% 7% 19% 20% 16% 7% 7% 64% 43% 0% 0% 21% 16% 0% 10% 5% Phase 2 RoA In Top Half on Average Change Accounting? 41% 46% 6% 3% 17% 16% 12% 7% 5% 15% 10% 5% -2% -3% -4% -6% -9% -11% NA YES NO NO NO YES NO NO YES
6% 1.8% 4.7%
As is well known, Bajaj Auto has been the transformational story in the sector. At the other extreme, Tata Motors has struggled to digest JLR as evidence by its RoA drop in FY09 and weak recovery thereafter.
Exhibit 28: Automobiles- Deconstructing RoA (Change from Phase 1 to Phase 2)
Firm Absolute* Firm Name Bajaj Auto Hero Motocorp Escorts TVS Motor Co. M&M Maruti Suzuki Eicher Motors Ashok Leyland Tata Motors Bloom Ticker BJAUT IN EQUITY HH IN EQUITY ESC IN EQUITY TVSL IN EQUITY MM IN EQUITY MSIL IN EQUITY EIM IN EQUITY AL IN EQUITY TTMT IN EQUITY Sector Relative* Profit Asset Profit Asset RoA RoA Margin Turnover Margin turnover Change Change Change Change Change change 15% 10% 5% -2% -3% -4% -6% -9% -11% 6% 2% 4% 0% -1% -3% 7% -1% -3% (0.23) 0.30 0.12 (0.31) (0.25) 0.27 (2.13) (1.32) (1.15) 20% 15% 10% 3% 2% 1% -1% -4% -6% 6% 2% 4% 0% 0% -3% 7% -1% -2% 0.34 0.86 0.68 0.26 0.32 0.84 -1.56 -0.75 -0.58
Source: Capitaline, Ambit Capital research * The Firm absolute figures here indicate the changes in RoA, Profit Margin and Asset Turnover for the firm in absolute terms from Phase 1 to Phase 2 while the Sector Relative changes highlight the same measures for the firm relative to the sector. The figures here are as sourced from Capitaline and may differ somewhat from the bottom up numbers of our sector leads.
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Price Ratio
Exhibit 29: AL over TVSL- Close to recent lows indicating good opportunity to play a reversal
1.40 1.20
1.00 0.80 0.60 0.40 0.20 Mar/06 Mar/07 Mar/08 Mar/09 Mar/10 Nov/05 Nov/06 Nov/07 Nov/08 Nov/09 Nov/10 Mar/11 Jul/05 Jul/06 Jul/07 Jul/08 Jul/09 Jul/10 Jul/11
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Whilst Financial Techs presence at the wrong end of the table is not surprising (given the capital consumptive nature of the exchanges in which FTech is investing in), Mphasis presence at the top of the table is ironic given the corporate governance issues bedeviling the firm.
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Strategy: Indias best and worst capital allocators Exhibit 31: IT- Deconstructing RoA (Change from Phase 1 to Phase 2)
Firm Absolute* Sector Relative* Profit Asset Profit Asset RoA RoA Bloom Ticker Margin Turnover Margin turnover Change Change Change Change Change change
MPHL IN EQUITY POL IN EQUITY HEXW IN EQUITY PATNI IN EQUITY TECHM IN EQUITY OFSS IN EQUITY KPIT IN EQUITY RLTA IN EQUITY INFTC IN EQUITY MTCL IN EQUITY PSYS IN EQUITY INFO IN EQUITY CPTL IN EQUITY GEOD IN EQUITY NITEC IN EQUITY WPRO IN EQUITY TCS IN EQUITY SIEL IN EQUITY ALDS IN EQUITY FTECH IN EQUITY 19% 9% 6% 6% 4% 2% 1% 1% -1% -2% -4% -5% -6% -6% -6% -6% -7% -8% -8% -12% -13% -21% 11% 6% 12% 7% 8% 12% 1% 4% 4% 3% -5% -2% -1% 3% -1% -12% -14% -1% -1% -16% 5% -201% 0.18 0.08 (0.15) 0.08 (1.18) (0.17) 0.14 (0.03) (0.82) (0.22) 0.23 (0.11) (0.17) (0.33) (0.24) (0.04) 0.36 (0.31) (0.27) (0.46) (1.28) (0.14) 23% 13% 10% 10% 8% 7% 5% 5% 3% 2% 1% -1% -1% -2% -2% -2% -3% -4% -4% -8% -9% -17% 11% 6% 12% 7% 8% 12% 1% 4% 4% 3% -4% -2% -1% 4% -1% -12% -14% -1% -1% -16% 5% -201% 0.36 0.26 0.03 0.26 -1.00 0.01 0.32 0.15 -0.64 -0.04 0.41 0.07 0.01 -0.15 -0.06 0.14 0.54 -0.13 -0.09 -0.28 -1.10 0.04
Firm Name
MphasiS Polaris Soft. Hexaware Tech. Patni Computer Tech Mahindra Oracle Fin.Serv. KPIT Infosys. Rolta India Infotech Enterp. Mindtree Persistent Sys Infosys Core Projects Geodesic NIIT Tech. Wipro TCS Sterling Intl Allied Digital Financial Tech.
Source: Capitaline, Ambit Capital research * The Firm absolute figures here indicate the changes in RoA, Profit Margin and Asset Turnover for the firm in absolute terms from Phase 1 to Phase 2 while the Sector Relative changes highlight the same measures for the firm relative to the sector. The figures here are as sourced from Capitaline and may differ somewhat from the bottom up numbers of our sector leads.
Analyst: Ankur Rudra, CFA ankurrudra@ambitcapital.com Tel: +91 22 3043 3211 Analyst: Subhashini Gurumurthy subhashinig@ambitcapital.com Tel: +91 9833700195
HCLT,
Short
MPHL
(Mean
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Ratio Chart
Exhibit 32: HCLT over MPHL- Reversal in place; key ratio support at 1
HCLT/MPHL Price Ratio
1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 Mar/06 Mar/07 Mar/08 Mar/09 Mar/10 Mar/11 Jul/05 Jul/06 Jul/07 Jul/08 Jul/09 Jul/10 Nov/05 Nov/06 Nov/07 Nov/08 Nov/09 Nov/10 Jul/11
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Section 8: Banks
In stark contrast to the other sectors analysed in the note so far, RoA has gone up for the vast majority of stocks in the banking sector. Presumably, the overall health of economy, the barriers to entry into the sector, the lack of M&A (due to regulatory obstacles) and the artificially suppressed savings rates on deposits have helped banks.
Exhibit 33: Banks- How they stack up on RoA Changes
Firm Name IndusInd Bank Kotak Mah. Bank Axis Bank ING Vysya Bank Bank of Baroda J & K Bank SBT Dena Bank Punjab Natl.Bank South Ind.Bank UCO Bank Indian Bank Yes Bank Canara Bank Oriental Bank St Bk of Bikaner Central Bank ICICI Bank Union Bank (I) HDFC Bank Federal Bank Bank of Maha Bank of India City Union Bank Dhanlaxmi Bank Vijaya Bank Andhra Bank United Bank (I) St Bk of India Corporation Bank IDBI Bank St Bk of Mysore Syndicate Bank Dev.Credit Bank Allahabad Bank Karnataka Bank IOB Pun. & Sind Bank Bloom Ticker IIB IN EQUITY KMB IN EQUITY AXSB IN EQUITY VYSB IN EQUITY BOB IN EQUITY J&KBK IN EQUITY SBTR IN EQUITY DBNK IN EQUITY PNB IN EQUITY SIB IN EQUITY UCO IN EQUITY INBK IN EQUITY YES IN EQUITY CBK IN EQUITY OBC IN EQUITY SBBJ IN EQUITY CBOI IN EQUITY ICICIBC IN EQUITY UNBK IN EQUITY HDFCB IN EQUITY FB IN EQUITY BOMH IN EQUITY BOI IN EQUITY CUBK IN EQUITY DHLBK IN EQUITY VJYBK IN EQUITY ANDB IN EQUITY UNTDB IN EQUITY SBIN IN EQUITY CRPBK IN EQUITY IDBI IN EQUITY SBMS IN EQUITY SNDB IN EQUITY DEVB IN EQUITY ALBK IN EQUITY KBL IN EQUITY IOB IN EQUITY PJSB IN EQUITY Mkt Cap RoA RoA RoA Phase 1 RoA RoA RoA Phase 2 RoA (USD mn) 2006 2007 2008 Average 2009 2010 2011 Average Change 2,729 0.2% 0.4% 0.3% 7,481 1.3% 0.8% 1.2% 12,806 1.1% 1.0% 1.0% 745 0.1% 0.5% 0.7% 8,439 0.8% 0.8% 0.9% 942 0.7% 1.0% 1.1% 827 0.9% 0.9% 1.0% 772 0.3% 0.7% 1.0% 8,590 1.1% 1.0% 1.1% 574 0.5% 0.8% 0.9% 1,493 0.3% 0.5% 0.5% 2,220 1.1% 1.4% 1.5% 2,391 1.4% 1.0% 1.3% 6,164 1.1% 0.9% 0.9% 2,509 1.0% 0.8% 0.4% 808 0.6% 1.0% 0.9% 2,025 0.4% 0.6% 0.5% 28,481 1.1% 1.0% 1.2% 4,048 0.8% 0.9% 1.2% 24,222 1.4% 1.5% 1.4% 1,015 1.1% 1.2% 1.2% 636 0.2% 0.8% 0.8% 5,806 0.7% 0.8% 1.2% 403 1.5% 1.4% 1.5% 214 0.4% 0.5% 0.8% 833 0.4% 0.8% 0.7% 1,877 1.3% 1.2% 1.1% 814 0.7% 0.7% 0.3% 39,058 1.0% 0.9% 1.1% 2,101 1.2% 1.1% 1.2% 3,117 0.7% 0.7% 0.6% 679 1.2% 1.0% 1.0% 1,554 0.9% 0.9% 0.8% 204 -2.5% 0.2% 0.5% 2,441 1.4% 1.2% 1.2% 450 1.2% 1.1% 1.3% 1,975 1.4% 1.3% 1.3% 536 1.6% 1.8% 1.3% 0.3% 0.6% 1.0% 1.3% 1.1% 1.1% 1.6% 1.7% 1.0% 1.3% 1.4% 1.4% 0.4% 0.6% 0.8% 0.9% 0.8% 1.0% 1.1% 1.2% 0.9% 1.1% 1.2% 1.2% 0.9% 1.3% 1.2% 1.1% 0.7% 0.9% 0.9% 0.9% 1.1% 1.3% 1.4% 1.2% 0.7% 1.0% 0.9% 0.9% 0.4% 0.5% 0.8% 0.6% 1.3% 1.5% 1.6% 1.5% 1.2% 1.4% 1.4% 1.3% 1.0% 1.0% 1.2% 1.2% 0.7% 0.8% 0.9% 1.0% 0.8% 0.9% 0.9% 0.9% 0.5% 0.4% 0.6% 0.6% 1.1% 1.0% 1.2% 1.3% 1.0% 1.1% 1.1% 0.9% 1.4% 1.3% 1.5% 1.6% 1.2% 1.3% 1.1% 0.0% 0.6% 0.7% 0.6% 0.4% 0.9% 1.4% 0.7% 0.7% 1.4% 1.4% 1.4% 1.5% 0.5% 1.1% 0.3% 0.2% 0.6% 0.4% 0.8% 0.7% 1.2% 1.0% 1.2% 1.2% 0.5% 0.3% 0.4% 0.6% 1.0% 1.0% 0.9% 0.7% 1.2% 1.1% 1.1% 1.0% 0.7% 0.5% 0.5% 0.7% 1.1% 0.9% 1.0% 1.0% 0.9% 0.7% 0.6% 0.7% -0.6% -1.5% -1.3% 0.3% 1.3% 0.8% 1.0% 1.0% 1.2% 1.2% 0.6% 0.7% 1.3% 1.1% 0.6% 0.6% 1.6% 1.1% 0.9% 0.8% 1.0% 1.5% 1.4% 0.8% 1.1% 1.2% 1.2% 0.9% 1.3% 0.9% 0.6% 1.5% 1.4% 1.1% 0.9% 0.9% 0.5% 1.2% 1.0% 1.5% 1.2% 0.6% 0.9% 1.4% 0.5% 0.6% 1.1% 0.5% 0.9% 1.1% 0.5% 1.0% 0.7% -0.9% 0.9% 0.8% 0.8% 0.9% 0.7% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3% 0.2% 0.2% 0.2% 0.2% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -0.1% -0.1% -0.1% -0.1% -0.1% -0.1% -0.2% -0.3% -0.3% -0.4% -0.6% -0.6% In Top Half on Accounting? YES YES NO NO YES YES NA NO YES YES NO NO NO NO NO NA YES YES YES YES YES YES YES YES NO NO NO NO YES YES NO NA NO NO NO YES YES NO
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As is well known, Indus Ind Bank has been the RoA star of the sector as the exABN management team has turned around the banks fortunes. A range of old private sector and public sector banks bring up the rear.
Exhibit 34: Banks- Deconstructing RoA (Change from Phase 1 to Phase 2)
Firm Absolute* Firm Name IndusInd Bank Kotak Mah. Bank Axis Bank ING Vysya Bank Bank of Baroda J & K Bank SBT Dena Bank Punjab Natl.Bank South Ind.Bank UCO Bank Indian Bank Yes Bank Canara Bank Oriental Bank St Bk of Bikaner Central Bank ICICI Bank Union Bank (I) HDFC Bank Federal Bank Bank of Maha Bank of India City Union Bank Dhanlaxmi Bank Vijaya Bank Andhra Bank United Bank (I) St Bk of India Corporation Bank IDBI Bank St Bk of Mysore Syndicate Bank Dev.Credit Bank Allahabad Bank Karnataka Bank IOB Pun. & Sind Bank Bloom Ticker IIB IN EQUITY KMB IN EQUITY AXSB IN EQUITY VYSB IN EQUITY BOB IN EQUITY J&KBK IN EQUITY SBTR IN EQUITY DBNK IN EQUITY PNB IN EQUITY SIB IN EQUITY UCO IN EQUITY INBK IN EQUITY YES IN EQUITY CBK IN EQUITY OBC IN EQUITY SBBJ IN EQUITY CBOI IN EQUITY ICICIBC IN EQUITY UNBK IN EQUITY HDFCB IN EQUITY FB IN EQUITY BOMH IN EQUITY BOI IN EQUITY CUBK IN EQUITY DHLBK IN EQUITY VJYBK IN EQUITY ANDB IN EQUITY UNTDB IN EQUITY SBIN IN EQUITY CRPBK IN EQUITY IDBI IN EQUITY SBMS IN EQUITY SNDB IN EQUITY DEVB IN EQUITY ALBK IN EQUITY KBL IN EQUITY IOB IN EQUITY PJSB IN EQUITY Sector Relative* Profit Asset Profit Asset RoA RoA Margin Turnover Margin turnover Change Change Change Change Change change 0.7% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3% 0.2% 0.2% 0.2% 0.2% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -0.1% -0.1% -0.1% -0.1% -0.1% -0.1% -0.2% -0.3% -0.3% -0.4% -0.6% -0.6% 8% 2% 5% 4% 6% 3% 3% 3% 3% 2% 3% 1% -2% 2% 1% 1% 1% 1% 2% 0% -2% 1% 0% -1% 0% -1% -1% -1% 0% -1% -2% -3% -3% -2% -4% -5% -7% -9% 0.00 0.02 0.00 0.00 (0.00) 0.01 (0.00) 0.00 0.00 0.00 (0.00) 0.00 0.01 (0.00) 0.00 0.00 0.00 0.00 (0.00) 0.01 0.01 (0.01) (0.00) 0.00 (0.01) 0.00 0.00 0.00 (0.00) (0.00) 0.00 0.01 0.00 0.01 (0.00) 0.00 (0.00) 0.00 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% -1% -1% 8% 2% 4% 4% 5% 2% 3% 3% 2% 2% 2% 1% -3% 2% 1% 1% 1% 0% 1% -1% -2% 0% 0% -2% 0% -1% -2% -2% -1% -1% -3% -3% -3% -2% -4% -6% -7% -9% 0.00 0.02 0.00 0.00 -0.00 0.01 -0.00 0.00 0.00 0.00 -0.00 0.00 0.01 -0.00 0.00 0.00 0.00 0.00 -0.00 0.01 0.01 -0.01 -0.00 0.00 -0.01 0.01 0.00 0.00 -0.00 -0.00 0.00 0.01 0.00 0.01 -0.00 0.00 -0.00 0.00
Source: Capitaline, Ambit Capital research * The Firm absolute figures here indicate the changes in RoA, Profit Margin and Asset Turnover for the firm in absolute terms from Phase 1 to Phase 2 while the Sector Relative changes highlight the same measures for the firm relative to the sector. The figures here are as sourced from Capitaline and may differ somewhat from the bottom up numbers of our sector leads.
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Analyst: Krishnan ASV vkrishnan@ambitcapital.com Tel: +91 22 3043 3205 Analyst: Pankaj Agarwal, CFA pankajagarwal@ambitcapital.com Tel: +91 22 3043 3206
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The stock quotes at 2x our standalone FY12E ABVPS estimates of Rs991 and is likely to under-perform on a risk-adjusted return basis.
Price Ratio
Exhibit 35: PNB over SBIN- Rising relative strength of PNB versus SBIN augurs well; a break above 0.5 on the price ratio to bring in accelerated outperformance
PNB/SBIN Price Ratio
0.50 0.45 0.40 0.35 0.30 0.25 0.20 Jul/05 Mar/06 Jul/06 Mar/07 Jul/07 Mar/08 Jul/08 Mar/09 Jul/09 Mar/10 Jul/10 Mar/11 Nov/05 Nov/06 Nov/07 Nov/08 Nov/09 Nov/10 Jul/11
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-3% -11%
Exhibit 37: Capital Goods, Electrical Equipment- Deconstructing RoA (Change from Phase 1 to Phase 2)
Firm Absolute* Firm Name Alstom Projects BHEL BGR Energy Sys. K E C Intl. Kalpataru Power Suja Towers Thermax Havells India Areva T&D ABB Suzlon Energy Bloom Ticker ABBAP IN EQUITY BHEL IN EQUITY BGRL IN EQUITY KECI IN EQUITY KPP IN EQUITY SUTL IN EQUITY TMX IN EQUITY HAVL IN EQUITY ATD IN EQUITY ABB IN EQUITY SUEL IN EQUITY Profit RoA Margin Change Change 9% 8% 2% 2% -4% -7% -8% -8% -9% -18% -20% -27% 2% 4% -1% 1% -1% -3% -3% -1% 1% -4% -5% -37% Sector Relative* Asset Profit Asset RoA Turnover Margin turnover Change Change Change change 0.61 (0.48) 0.26 (0.12) (0.46) (0.31) (0.56) (0.45) (1.69) (1.00) (0.90) (0.61) 17% 15% 9% 9% 3% 0% -1% -1% -1% -11% -12% -20% 5% 7% 3% 4% 2% 0% 0% 2% 4% -1% -2% -34% 0.79 -0.31 0.43 0.06 -0.28 -0.13 -0.38 -0.27 -1.51 -0.83 -0.72 -0.44
Source: Capitaline, Ambit Capital research * The Firm absolute figures here indicate the changes in RoA, Profit Margin and Asset Turnover for the firm in absolute terms from Phase 1 to Phase 2 while the Sector Relative changes highlight the same measures for the firm relative to the sector. The figures here are as sourced from Capitaline and may differ somewhat from the bottom up numbers of our sector leads.
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Analyst: Bhargav Buddhadev, bhargavbuddhadev@ambitcapital.com Tel: +91-22-3043 3252 Analyst: Puneet Bambha, puneetbambha@ambitcapital.com Tel: +91-22-3043 3259
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Price Ratio
Exhibit 38: SUEL over CRG (Longer Term)- On a downward trajectory
3.50 3.00 2.50
2.00 1.50 1.00 0.50 Jun/06 Jun/07 Jun/08 Jun/09 Jun/10 Feb/06 Feb/07 Feb/08 Feb/09 Feb/10 Feb/11
Jun/11
Exhibit 39: SUEL over CRG (Shorter Term)- Pick up in relative strength
SUEL/CRG Price Ratio
Jun/10
Jan/11
May/10
May/11
Jan/10
Jun/11
Aug/11
30
Oct/05
Oct/06
Oct/07
Oct/08
Oct/09
Aug/10
Mar/11
Oct/10
Sep/10
Mar/10
Jul/10
Feb/10
Nov/10
Feb/11
Nov/09
Dec/09
Dec/10
Apr/10
Oct/09
Oct/10
Apr/11
Jul/11
Shariq Merchant
Subhashini Gurumurthy Vijay Chugh Sales Name Deepak Sawhney Dharmen Shah Dipti Mehta Pramod Gubbi, CFA Sarojini Ramachandran
Desk-Phone (022) 30433295 (022) 30433289 (022) 30433053 (022) 30433228 +44 (0) 20 7614 8374
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Disclaimer
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