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NiveshDaily
January 24, 2017
INDICES
Indices Previous (day) Close % chg From Research Desk
Sensex 27117.3 0.3 %
Nifty 8391.5 0.5%
(As on 23rd January, 2017) News Updates
MOIL
Result Preview
Ajanta Pharma | Rating: HOLD | Target: Rs 1782
Bharti Airtel Ltd. | Rating: HOLD | Target: Rs.364
Biocon | Rating: SELL | Target: Rs 540
HCL Technologies Ltd. | Rating: BUY | Target: Rs 977
HDFC Bank | Rating: BUY | Target: 1475
L&T Finance Holding (LTFH) | Rating: BUY | Target: Rs.125
Swaraj Engines | Rating: HOLD | Target: Rs 1340
Tata Sponge Iron Ltd. | Rating: BUY | Target: Rs 930
TVS Motor | Rating: SELL | Target: Rs 270
Research Update included
Initiating Coverage| Bharat Electronics Ltd. (Refer to our detailed report released on
23rd January, 2017)
Result Today
Daljeet S. Kohli
Head of Research
Tel: +91 22 66188826
daljeet.kohli@indianivesh.in
IndiaNivesh Securities Limited | Research Analyst SEBI Registration No. INH000000511
IndiaNivesh Research 601 & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai 400 007. Tel: (022) 66188800
IndiaNivesh Research is also available on Bloomberg INNS, Thomson First Call, Reuters and Factiva INDNIV.
Daljeet S. Kohli News Updates
Head of Research
Tel: +91 22 66188826
daljeet.kohli@indianivesh.in MOIL:
Govt. to sell 10% stake in MOIL
Government of India has announced that it would go ahead with Offer for Sale (OFS) of
10% stake in Manganese Ore India Ltd. (MOIL) at floor price of Rs 365/share on Jan 24,
2017. At floor price of Rs 365/share, the OFS is at 4.63% discount to yesterday's closing
price. For retail investors additional discount of 5.2% is being offered.
Valuation:
We had earlier recommended BUY on Oct 5, 2016 at the then CMP of Rs 261/share, with
price target of Rs 365/share (FY2017E EV/EBITDA multiple at ~6.0x). Our target price was
achieved in the month of Nov‐2016. We continue to maintain HOLD rating on the stock.
We wait for the quarterly results to revise our target price.
IndiaNivesh Research January 24, 2017
Daljeet S. Kohli Result Preview
Head of Research
Tel: +91 22 66188826
daljeet.kohli@indianivesh.in Ajanta Pharma | Rating: HOLD | Target: Rs 1782
Rs. Mn. Q3FY17E Q2FY17 Q3FY16 Q‐o‐Q % Y‐o‐Y%
Revenues 5,412 5,024 4,657 7.7 16.2
EBIDTA 1,821 1,598 1,568 14.0 16.2
Adj Net Profit 1,392 1,307 1,117 6.5 24.7
Margin % Margin % Margin % Basis Points (BPS)
EBITDA % 34 32 34 184 ‐2
PAT % 26 26 24 ‐29 174
Source: Company, IndiaNivesh Research
Ramp up in US business on back of couple of approvals like gZegerid & gAzor will aid
the top line. Growth in US business will be key driver for future growth. Margins to
improve due to better product mix. Watch out for capacity ramp up at Dahej which
is solely for US.
Valuation:
At CMP of Rs.1784, the stock is trading at P/E of 33x for FY17E and 24x for FY18E
respectively. We have HOLD rating on stock with target price of Rs.1782
IndiaNivesh Research January 24, 2017
Daljeet S. Kohli Bharti Airtel Ltd. | Rating: HOLD | Target: Rs.364
Head of Research
Consolidated Financial Snapshot
Tel: +91 22 66188826
Rs. mn Q3FY17E Q2FY17 QoQ% Q2FY16 YoY%
daljeet.kohli@indianivesh.in
Revenue 2,40,287 2,46,715 ‐2.6% 2,41,034 ‐0.3%
EBITDA 89,209 94,602 ‐5.7% 84,512 5.6%
Sriram R
EBITDA Margin% 37.1% 38.3% 35.1%
Research Associate
Net Profit 12,287 14,607 ‐15.9% 11,169 10.0%
Tel: +91 22 61151621 PAT Margin% 5.1% 5.9% 4.6%
r.sriram@indianivesh.in EPS 3.1 3.7 ‐15.9% 2.8 10.0%
Source: Company Filings; IndiaNivesh Research
Rajiv Bharati
Research Analyst
Update
Tel: +91 22 66188818
rajiv.bharati@indianivesh.in We expect voice RPMs (India business) to negate the impact of domestic subscriber
growth at Y/Y level resulting in marginal 1.2% Y/Y growth in MOUs at 294 bn min.
We expect consolidated revenue degrowth of ‐2.6% Q/Q to ~Rs.240 bn. India
(including South Asia) business is expect to degrow by ‐4.6% Q/Q (3.7% Y/Y growth)
revenue growth to ~Rs.185 bn. Africa segment revenue is likely to improve by 2.8%
Q/Q to Rs. 54.5 bn.
On a consolidated level, EBITDA margin could expand by 200 bps Y/Y (shrink by 120
bps Q/Q).
Key thing to watch out for: (1) India mobile traffic, (2) data business performance, (3)
Africa business performance, (4) commentary of spectrum auction, and (5) competitive
intensity post Reliance‐Jio launch and its Happy New Year offer.
Key Performance Indicators Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17E YoY QoQ
India ‐ Subscribers (mn) 243 251 256 260 265 9.0% 2.0%
India ‐ Voice ARPU (Rs. per month) 137 138 139 132 111 ‐18.4% ‐15.3%
India ‐ Mobile MOU/Sub/month 398 409 410 402 370 ‐7.1% ‐8.0%
India ‐ Voice RPM (paise/min) 34 33 33 32 30 ‐10.7% ‐7.0%
India ‐ Mobile Traffic (bn min) 290 308 315 313 294 1.2% ‐6.2%
India ‐ Data Subscribers (mn) 55 58 59 63 64 16.0% 1.5%
India ‐ ARMB (bn min) 24 23 22 20 18 ‐24.0% ‐10.0%
India ‐ MB per Customer per month 843 859 904 1,000 1,050 24.6% 5.0%
South Asia ‐ Voice RPM (paise/min) 11 10 9 9 10 ‐12.0% 8.0%
South Asia ‐ Voice ARPU (Rs. per month) 101 101 97 105 103 2.8% ‐2.0%
Africa ‐ Subscribers (mn) 82 81 77 78 79 ‐3.7% 1.1%
Africa ‐ Voice ARPU ($ per month) 3.0 2.9 2.6 2.7 2.6 ‐13.4% ‐3.9%
Valuation:
At CMP of Rs. 319, the stock is trading at 5.7x FY18E EV/EBITDA estimates. We have HOLD
with TP of Rs. 364 on the stock.
IndiaNivesh Research January 24, 2017
Daljeet S. Kohli
Biocon | Rating: SELL | Target: Rs 540
Head of Research Rs. Mn. Q3FY17E Q2FY17 Q3FY16 Q‐o‐Q % Y‐o‐Y%
Revenues 9,747 9,404 8,282 3.6 17.7
Tel: +91 22 66188826
EBIDTA 2,505 2,263 1,849 10.7 35.5
daljeet.kohli@indianivesh.in
Adj Net Profit 1,485 1,467 1,080 1.2 37.5
Margin % Margin % Margin % Basis Points (BPS)
EBITDA % 26 24 22 164 337
PAT % 15 16 13 ‐36 220
Source: Company, IndiaNivesh Research
We expect 17% Y‐Y growth in sales backed by 20% growth in small molecules & biologics
offset by decline in sales of branded formulation as company has discontinued sales of
Abraxane. EBITDA margin to improve due to better product mix.
Valuation:
At CMP of Rs.999, the stock is trading at P/E of 38.3x for FY17E and 33.3x for FY18E
respectively. We have SELL rating on stock with target price of Rs.540
Daljeet S. Kohli HCL Technologies Ltd. | Rating: BUY | Target: Rs 977
Head of Research Rs in mn Q3FY17E Q2FY17A Q3FY16A Q‐o‐Q % Ch. Y‐o‐Y % Ch.
Net Sales ($ Mn) 1755 1722 1566 1.9% 12.1%
Tel: +91 22 66188826 Net Sales 118,539 115,192 103,410 2.9% 14.6%
daljeet.kohli@indianivesh.in EBITDA 25,841 26,067 22,250 ‐0.9% 16.1%
Net Profit 20,609 20,140 19,190 2.3% 7.4%
Saptarshi Mukherjee EPS (Rs.) 14.6 14.3 13.6 2.1% 7.4%
Research Associate
1,413 1,413 1,413
Tel: +91 22 66188836 bps
saptarshi.mukherjee@indianivesh.in EBITDA Margin (%) 21.8% 22.6% 21.5% (69) 28
PAT Margin (%) 17.4% 17.5% 18.6% (10) (117)
Note: Consolidated Financials, (changed to FY calendar; earlier they used to follow June Ending)
Updates
Sequentially, we expect ~1.9% Q/Q $‐revenue growth. EBITDA margin is expected to decline
by 83bps Q/Q due to the impact of the salary increase of the employees and PAT margin to
see improvement on the back of rupee depreciation and operational efficiencies.
Key things to watch out for:
1) FY18 Outlook, especially on IMS side, and (2) Growth prospects in ERD space post
Geometric acquisition (3) update on large deals (4) outlook on digital business (5) more
details on IP‐partnership with IBM (6) demand outlook for IMS and engineering solutions (7)
medium‐long term M&A strategy.
Valuation:
At CMP of Rs.857, the stock is trading at 13.7x FY17E and 11.1x FY18E EPS estimates. We
maintain BUY with previous target price to Rs.977 (valuing at 12.6x FY18E).
IndiaNivesh Research January 24, 2017
Daljeet S. Kohli
HDFC Bank | Rating: BUY | Target: 1475
Head of Research Rs.mn Q3FY17E Q3FY16 Q2FY17 Q‐o‐Q % Y‐o‐Y %
Net Interest Income 80,131 70,685 79,936 0.2 13.4
Tel: +91 22 66188826
Pre Provision Profit 55,835 57,359 60,246 ‐7.3 ‐2.7
daljeet.kohli@indianivesh.in
Net Profit 32,909 33,569 34,553 ‐4.8 ‐2.0
Source: Company, IndiaNivesh Research
We expect HDFC bank to deliver loan growth of 22% yoy and Net Interest income to grow
by 20% yoy to Rs 80.0 bn. However operating profit is expected to grow by 21% yoy led by
healthy NII growth and Non interest income growth of 19% yoy. Net Profit to grow by 20%
yoy to Rs 34.4 bn. Asset quality is likely to remain stable at Gross NPA of 1% and Net NPA of
0.3% qoq.
Valuation
At CMP of Rs 1245, HDFC Bank is trading at P/ABV of 3.7x and 3.1x for FY17E and FY18E
respectively. We have a BUY rating on HDFC Bank with target price of Rs 1475.
Key things to watch out for
Outlook on margins and Loan growth
L&T Finance Holding (LTFH) | Rating: BUY | Target: Rs.125
Rs. Mn. Q3FY17E Q2FY17 Q3FY16 Q‐o‐Q % Y‐o‐Y%
Revenues 9,633 9,343 8,052 3.1 19.6
EBIDTA 6,757 6,557 5,294 3.1 27.6
Adj Net Profit 2,442 2,466 2,112 (1.0) 15.6
Margin % Margin % Margin % Basis Points (BPS)
EBITDA % 70 70 66 ‐4 440
PAT % 25 26 26 ‐104 ‐88
Source: Company, IndiaNivesh Research
Valuation
At CMP of Rs 94.5, LTFH is trading at Consolidated P/ABV of 2.6x and 2.2x for FY17E and
FY18E respectively. We have a BUY rating on LTFH with target price of Rs 125.
Key things to watch out for
Loan growth in L&T Infra, L&T Finance and Housing Finance business
Asset quality in both the financing subsidiaries
Any asset sale to ARC and restructuring of assets in L&T Infra
IndiaNivesh Research January 24, 2017
Daljeet S. Kohli Swaraj Engines | Rating: HOLD | Target: Rs 1340
Head of Research
(In Rs. mn) Q3FY17E Q2FY17 Q3FY16 q‐q change y‐y change
Tel: +91 22 66188826 Revenue 1870 1789 1056 4.5 77.1
daljeet.kohli@indianivesh.in EBIDTA 308 292 128 5.7 141.8
PAT 203 193 84 5.6 142.6
Sriram R Margins bps
Research Associate EBITDA Margin 16.5% 16.3% 12.1% 18 441
PAT Margin 10.9% 10.8% 7.9% 11 294
Tel: +91 22 61151621
Source: Company, IndiaNivesh Research
r.sriram@indianivesh.in
Top line is expected to grow by 77% YoY due to increase good pickup in tractor
Rajiv Bharati
volumes.
Research Analyst
Tel: +91 22 66188818 EBITDA margin is likely to remain steady, which is good considering the margin
rajiv.bharati@indianivesh.in shrinkage seen in bulk of the auto players.
Valuation
We believe that long term structural story for tractors remains intact with acceleration in
the pace of mechanization of Indian agriculture. The company had posted 22% YoY growth
in volumes in Q2FY17 and we expect similar strong performance in the current quarter also.
At CMP of Rs. 1360 Swaraj Engines is trading at PE of 19x FY18E EPS. We maintain HOLD
rating on the stock with target price of Rs. 1340
Tata Sponge Iron Ltd. | Rating: BUY | Target: Rs 930
Rs. Mn. Q3FY17E Q2FY17 Q3FY16 Q‐o‐Q % Y‐o‐Y%
Revenues 1391.2 1528.8 1387.8 ‐9 0.2
EBIDTA 274.5 262 106 4.8 158.9
Adj Net Profit 171.5 160.6 52.5 6.8 226.6
Margin % Margin % Margin % Basis Points (BPS)
EBITDA % 20 17 8 259 1209
PAT % 12 11 4 182 854
Source: Company, IndiaNivesh Research
Sponge iron prices surged by 14% Q/Q, the realization of sponge iron reached at
Rs.15900/ton in Q3 FY17 v/s 13900/ ton in Q2 FY 17. However increase in realization will be
offset by expected lower production due to monsoon. Margins are likely to boosted by
Improvement & expansion of production facility.
Valuation:
At CMP of Rs 623, TSIL is trading at 2.8x FY17E & 2.4x FY18E EV/EBITDA per share. The
Company is strategically well placed, going ahead we expect the company to outperform.
We have a BUY rating on the stock with a target price of Rs 930, we will review our rating
and target post the results.
IndiaNivesh Research January 24, 2017
TVS Motor | Rating: SELL | Target: Rs 270
(In Rs. mn) Q3FY17E Q2FY17 Q3FY16 q‐q change y‐y change
Volume(Unit) 718562 815562 702044 ‐11.9 2.4
Revenue 30229 34265 29396 ‐11.8 2.8
EBIDTA 2236 2767 2023 ‐19.2 10.5
PAT 1273 1774 1077 ‐28.3 18.2
Margins bps
EBITDA Margin 7.4% 8.1% 6.9% ‐68 52
PAT Margin 4.2% 5.2% 3.7% ‐97 55
Source: Company, IndiaNivesh Research
TVS Motor’s revenue is expected to increase by 3% YoY to Rs 30.2 bn led by 2% volume
growth. Modeps’ volume during the quarter was up 27% YoY.
EBITDA margin is likely to come down on account of negative operating leverage
Valuation
At CMP of Rs. 381, stock is trading 22x FY18E EPS which looks expensive. Its peers like Bajaj
Auto and Hero Motocorp maintains EBITDA margin in the range of 15%‐21% compared to
sub 10% margin of TVS Motors. We maintain SELL rating on the stock with target price of Rs.
270.
IndiaNivesh Research January 24, 2017
Initiating Coverage Bharat Electronics Ltd. (BEL)
Jan 23, 2017
Play on Indian Defense Capex spending
Current Investment Rationale
CMP : Rs 1,515 Favourable Defense capex outlook: (1) Strengthening of India’s position vis‐à‐vis
Rating : BUY China‐Pakistan, (2) upgradation of existing fleet with modern technology and
addition of new ones, would drive Indian Defense (4th largest global spender)
Target : Rs 1,916
capex cycle. Indian Defense capex witnessed 9.2% CAGR during FY2010‐17E. Since
May‐14, DAC has cleared Defense projects worth $54.3bn. Huge awarding
STOCK INFO
pipeline, roll‐out of new DPP policy in 2016, 100% FDI in Defense, and other
government initiatives strengthen our view that Indian Defense capex cycle would
INDEX
continue to be on an uptrend.
BSE 500049
NSE BEL BEL‐ biggest beneficiary of uptrend in capex: Amongst all listed Defense players,
Bloomberg BHE IN BEL is likely to be the biggest beneficiary of uptick in Defense capex cycle. During
Reuters BAJE.NS FY2011‐16 an average 36% of the Defense indigenous spend has been towards
Sector Capital Goods Electronics. Indian Defense Electronics production witnessed 18.6% CAGR during
Face Value (Rs) 10 FY2011‐16, with BEL maintaining over a third of market share. In the back‐drop of
Equity Capital (Rs mn) 2,234 huge awarding pipeline, BEL’s track‐record of 80+% of order wins on nomination
Mkt Cap (Rs mn) 338,473 basis, strong R&D spends and partnership with DRDO, comforts us that BEL would
52w H/L (Rs) 1,569 / 1,008 be the biggest beneficiary of this capex uptrend.
Avg Daily Vol (BSE+NSE) 410,412
4‐pronged growth strategy to drive top‐line growth: Focus on (1) partnership
with government’s R&D divisions, higher in‐house R&D spends, (2) tie‐up with
SHAREHOLDING PATTERN % MNC’s to capture new Defense areas and build capabilities, (3) capex, and (4)
(as on Dec, 2016)
exports, should help BEL take maximum benefit of the emerging uptrends in the
Promoters 74.41
Indian Defense capex cycle. Accordingly, we expect BEL to report 13.8% revenue
Public 25.59
CAGR during FY2017‐19E.
Transformation to ‘System Integrator’, to aid margin expansion: BEL over the
STOCK PERFORMANCE (%) 3m 6m 12m
years is in the process of gradually transforming in to a ‘Systems Integrator’. Lower
BHE 19.4 21.7 25.4
import dependency, outsourcing of non‐core works (tied‐up with ~800 indigenous
SENSEX (3.8) (3.5) 10.7
vendors) has helped BEL expand its EBITDA margins in last few years. We expect
Source: Bloomberg, IndiaNivesh Research
BEL to report north of 18% EBITDA margins, going forward.
Strong BS, RoE’s to expand to 19% by FY2019: Post the recent successful
BHE v/s SENSEX completion of the Rs 21.7bn share buyback, BEL is expected to end FY2017 with
approx. cash of ~Rs 51.9bn. BEL is expected to generate Rs 36bn of cash flow from
150 operations during FY2017‐19E, against management’s yearly capex guidance of Rs
100 4‐5bn (and our assumption of Rs 3‐4bn) during the same period. This indicates BEL
50 would not depend on debt to fund its capex. Considering that capex funding would
0 be done by internal accruals, we expect BEL’s strong BS to support RoE expansion
Jan‐16
Apr‐16
May‐16
Jun‐16
Jul‐16
Aug‐16
Oct‐16
Nov‐16
Dec‐16
Feb‐16
Mar‐16
Sep‐16
from 15.5% in FY2016 to 19.0% in FY2019E.
BHE IN SENSEX
At CMP of Rs 1,515, BEL is trading 21.5x/18.2x its FY2018E/ FY2019E P/E multiple,
respectively. Considering (1) their strong growth outlook and market positioning,
which is expected to last few years, (2) 13.8%/ 14.2% revenue/PAT CAGR during
Source: Bloomberg, IndiaNivesh Research FY2017‐19E, (3) debt free status, (4) ROE expansion scenario, we have assigned
target multiple of 23.0x to our FY2019 EPS estimate of Rs 83.3 to arrive at price
Daljeet S. Kohli target of Rs 1,916. Given the 26.5% upside, we initiate on BEL stock with Buy
Head of Research rating.
Tel: +91 22 66188826 Exhibit I: Financials Snapshot (Consolidated)
daljeet.kohli@indianivesh.in
Y/E March OB/LTM Net Adj. EBITDA RoE Adj. EV/EBITDA
EBITDA
Yellapu Santosh (Rs mn) sales (x) Sales EPS (Rs) Margin (%) P/E (x) (x)
Research Analyst FY15 3.1x 68,953 11,747 53.6 16.6 14.7 28.3 23.7
Tel: 022 66188832 FY16 4.5x 73,827 15,378 62.5 20.4 15.5 24.3 17.1
santosh.yellapu@indianivesh.in FY17E 4.6x 81,246 15,505 63.9 18.7 18.6 23.7 18.5
FY18E 4.6x 91,761 17,421 70.3 18.7 18.2 21.5 16.0
FY19E 4.6x 105,229 20,968 83.3 19.6 19.0 18.2 12.7
Source: Company, IndiaNivesh Research
IndiaNivesh Securities Limited|Research Analyst SEBI Registration No:INH0000000511
IndiaNivesh Securities Ltd
601 & 602, SukhSagar, N. S. Patkar Marg, GirgaumChowpatty, Mumbai 400 007. Tel: (022) 66188800
IndiaNivesh Research is also available on Bloomberg INNS, Thomson First Call, Reuters and Factiva INDNIV.
Result Today
Ajanta Pharma Ltd.
Bharti Airtel Ltd.
Biocon Ltd.
HCL Technologies Ltd.
HDFC Bank Ltd
Kajaria Ceramics Ltd.
L&T Finance Holdings Ltd.
Somany Ceramics Ltd.
Swaraj Engines Ltd.
Tata Sponge Iron Ltd.
TVS Motor Company Ltd.
IndiaNivesh Research January 24, 2017
Disclaimer:
This document has been prepared by IndiaNivesh Securities Limited (“INSL”), for use by the recipient as information only and is not for circulation or public distribution. INSL includes subsidiaries,
group and associate companies, promoters, employees and affiliates. INSL researches, aggregates and faithfully reproduces information available in public domain and other sources, considered to
be reliable and makes them available for the recipient, though its accuracy or completeness has not been verified by INSL independently and cannot be guaranteed. The third party research material
included in this document does not represent the views of INSL and/or its officers, employees and the recipient must exercise independent judgement with regard to such content. This document
has been published in accordance with the provisions of Regulation 18 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is not to be altered,
transmitted, reproduced, copied, redistributed, uploaded or published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from INSL. This
document is solely for information purpose and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. Recipients of this document should be aware that past
performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients
particular circumstances. INSL does not take responsibility thereof. The research analysts of INSL have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board
of India (Research Analysts) Regulations, 2014. This document is based on technical and derivative analysis center on studying charts of a stock’s price movement, outstanding positions and trading
volume, as opposed to focusing on a company’s fundamentals and, as such, may not match with a report on a company’s fundamentals. Nothing in this document constitutes investment, legal,
accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances. INSL does not accept any responsibility or whatever
nature for the information, assurances, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions
expressed are our current opinions as of the date appearing on this document only. The opinions are subject to change without any notice. INSL directors/employees and its clients may have
holdings in the stocks mentioned in the document.
This report is based / focused on fundamentals of the Company and forward‐looking statements as such, may not match with a report on a company’s technical analysis report
Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this
report accurately reflect his or her personal views about the subject companies and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the
specific recommendations or views expressed in this report: Daljeet S Kohli, Kamal Sahoo, Santosh Yellapu, Rajiv Bharati, Sriram R, Monami Manna and Saptarshi Mukherjee.
Following table contains the disclosure of interest in order to adhere to utmost transparency in the matter:
Disclosure of Interest Statement
1 Details of business activity of IndiaNivesh Securities Limited (INSL) INSL is a Stock Broker registered with BSE, NSE and MCX ‐ SX in all the major segments viz. Cash, F & O and CDS
segments. INSL is also a Depository Participant and registered with both Depository viz. CDSL and NSDL.
Further, INSL is a Registered Portfolio Manager and is registered with SEBI.
2 Details of Disciplinary History of INSL No disciplinary action is / was running / initiated against INSL
3 Details of Associates of INSL Please refer to the important 'Stock Holding Disclosure' report on the IndiaNivesh website (investment
Research Section ‐http://www.indianivesh.in/Research/Holding_Disclosure.aspx?id=10 link). Also, please refer
to the latest update on respective stocks for the disclosure status in respect of those stocks. INSL and its
affiliates may have investment positions in the stocks recommended in this report.
4 Research analyst or INSL or its relatives'/associates' financial interest No (except to the extent of shares held by Research analyst or INSL or its relatives'/associates')
in the subject company and nature of such financial interest
5 Research analyst or INSL or its relatives'/associates' actual/beneficial Please refer to the important 'Stock Holding Disclosure' report on the IndiaNivesh website (investment
ownership of 1% or more in securities of the subject company, at the Research Section ‐ http://www.indianivesh.in/Research/Holding_Disclosure.aspx?id=10 link). Also, please refer
end of the month immediately preceding the date of publication of to the latest update on respective stocks for the disclosure status in respect of those stocks. INSL and its
the document. affiliates may have investment positions in the stocks recommended in this report.
6 Research analyst or INSL or its relatives'/associates' any other material No
conflict of interest at the time of publication of the document
7 Has research analyst or INSL or its associates received any No
compensation from the subject company in the past 12 months
8 Has research analyst or INSL or its associates managed or co‐managed No
public offering of securities for the subject company in the past 12
months
9 Has research analyst or INSL or its associates received any No
compensation for investment banking or merchant banking or
brokerage services from the subject company in the past 12 months
10 Has research analyst or INSL or its associates received any No
compensation for products or services other than investment banking
or merchant banking or brokerage services from the subject company
in the past 12 months
11 Has research analyst or INSL or its associates received any No
compensation or other benefits from the subject company or third
party in connection with the document.
12 Has research analyst served as an officer, director or employee of the No
subject company
13 Has research analyst or INSL engaged in market making activity for the No
subject company
14 Other disclosures No
INSL, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations
expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change,
as per applicable law, without any prior notice. INSL reserves the right to make modifications and alternations to this statement, as may be required, from time to time.
Definitions of ratings
BUY. We expect this stock to deliver more than 15% returns over the next 12 months.
HOLD. We expect this stock to deliver ‐15% to +15% returns over the next 12 months.
SELL. We expect this stock to deliver <‐15% returns over the next 12 months.
Our target prices are on a 12‐month horizon basis.
Other definitions
NR = Not Rated. The investment rating and target price, if any, have been arrived at due to certain circumstances not in control of INSL
CS = Coverage Suspended. INSL has suspended coverage of this company.
UR=Under Review. Such e invest review happens when any developments have already occurred or likely to occur in target company & INSL analyst is waiting for some more information to draw
conclusion on rating/target.
NA = Not Available or Not Applicable. The information is not available for display or is not applicable.
NM = Not Meaningful. The information is not meaningful and is therefore excluded.
Research Analyst has not served as an officer, director or employee of Subject Company
One year Price history of the daily closing price of the securities covered in this note is available at www.nseindia.com and www.economictimes.indiatimes.com/markets/stocks/stock‐quotes.
(Choose name of company in the list browse companies and select 1 year in icon YTD in the price chart)
IndiaNivesh Securities Limited
Research Analyst SEBI Registration No. INH000000511
IndiaNivesh Research 601 & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai 400 007.
January 24, 2017
Tel: (022) 66188800 / Fax: (022) 66188899
e‐mail: research@indianivesh.in | Website: www.indianivesh.in