Premarket MorningIndia Motilal 03.05.19

3 May 2019
Market snapshot Today’s top research Idea

Equities - India Close Chg .% CYTD.% Technology: Does Cognizant's guidance cut indicate softening
Sensex 38,981 -0.1 8.1 demand?
Nifty-50 11,725 -0.2 7.9
 Cognizant (CTSH) missed its 1QCY19 revenue guidance, cut its CY19 revenue
Nifty-M 100 17,461 -0.6 -2.3
and margin forecast, and cited unanticipated BFS weakness in the latter half
Equities-Global Close Chg .% CYTD.%
of 1Q to prevail over the year.
S&P 500 2,918 -0.2 16.4
Nasdaq 8,037 -0.2 21.1
 There have been sporadic comments by industry peers around client-
FTSE 100 7,351 -0.5 9.3 specific pockets of weak BFSI. Comments by CTSH on the US BFS
DAX 12,345 0.0 16.9 environment may contain the expectations on BFS growth in FY20,
Hang Seng 11,557 0.1 14.1 notwithstanding its own struggles with three of its top-5 BFS accounts.
Nikkei 225 22,259 -0.2 11.2
Commodities Close Chg .% CYTD.% Research covered
Brent (US$/Bbl) 71 -2.3 32.9
Gold ($/OZ) 1,271 -0.5 -0.9 Cos/Sector Key Highlights
Cu (US$/MT) 6,166 -1.0 3.6 Technology Does Cognizant's guidance cut indicate softening demand?
Almn (US$/MT) 1,797 -0.6 -3.6
Britannia Industries FY19 ends with accelerated market share gains
Currency Close Chg .% CYTD.%
USD/INR 69.4 -0.3 -0.6 Hindustan Zinc Strong opr. performance despite mining challenges
USD/EUR 1.1 -0.4 -2.6 Dabur India Another year of muted earnings/sales growth
USD/JPY 111.5 0.1 1.7 L&T Infotech In-line; Soft revenues dragged by top client in BFS
YIELD (%) Close 1MChg CYTDchg
L&T Finance Holdings Steady quarter; ‘Retailization’ theme continues
10 Yrs G-Sec 7.4 -0.02 0.0
10 Yrs AAA Corp 8.5 -0.04 0.0 Tata Power FCF generation dragged by capex and receivables
Flows (USD b) 2-May MTD CYTD Future Lifestyle Consistent results; not captured fully in valuation
FIIs 0.09 3.01 9.77
Blue Star Strong beat led by UCP margin outperformance
DIIs -0.11 -0.72 -2.39
Zensar Tech Revenue turnaround near completion, margins could follow
Volumes (INRb) 2-May MTD* CYTD*
Cash 365 365 357 Laurus Labs Strong beat on revenue/EBITDA/PAT
F&O 22,145 22,145 10,613 Shoppers Stop Growth trend lackluster but cost efforts appreciable
Note: *Average
Automobiles Wholesales weak across segments
Result Expectation BCORP | GCPL | HUVR | TTCH
Chart of the Day: Technology – Revenue growth deceleration is expected to continue
*: Guidance midpoint
Research Team (Gautam.Duggad@MotilalOswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
In the news today
Kindly click on textbox for the detailed news link
1 2
Cyclone ‘Fani’ set to barrel Standard Life to sell 1.78% stake in HDFC Life for ₹1,404 crore
into Odisha on Friday; state Standard Life (Mauritius Holdings) will off-load 1.78% stake in HDFC
on high alert Life Insurance Co for ₹1,404 crore beginning Friday. The sale will be
‘Fani’ an extremely severe undertaken in two slots -- non-retail investors on Friday and for retail
cyclone, moved in closer to the investors next week. The sale is being undertaken by the seller --
Odisha coast on Thursday, lying Standard Life (Mauritius Holdings) -- to achieve the minimum public
in wait just 360 km away on a shareholding in the company as per Securities and Exchange Board of
home stretch towards Puri India (Sebi) regulations, HDFC Life Insurance said in a regulatory
where it would make landfall on filing…
Friday afternoon…
3 4
Manufacturing PMI dips to
Air traffic growth hits 5-yr low
51.8 in April
in FY19 at 11.6%; cargo at 6%
Manufacturing activity expanded
The pace of growth in air traffic hit
at a slower rate in April
a five-year low, pulled down by
compared to its levels in March,
low growth of 3.9 percent in the
according to a private sector
5
March quarter as against a healthy
survey. The Nikkei India
14.9 percent in the first three
Manufacturing Purchasing
quarters. Cargo traffic growth also
Managers’ Index registered a
moderated in the year to 6 SBI to consider Jet staff’s
reading of 51.8 in April, lower
percent, as against double-digits billion-dollar bid after May 10
than the 52.6 in March…
growth witnessed over the past State Bank of India will consider
two years… the ₹7,000-crore investment
proposal made by employees of
Jet Airways only if it does not
receive an acceptable offer from
6 7 any of the four entities that have
been short-listed to place binding
NCLAT allows banks to declare bids. In a meeting with employee
US threatens to halt ground
defaulting IL&FS accounts as representatives on Thursday, the
operations of Indian airlines bank took the view that the
NPAs The United States has threatened proposal to allow the airline’s
The National Company Law to prohibit Indian carriers from management to take over the
Appellate Tribunal (NCLAT) on conducting ground handling in company can be considered after
Thursday allowed the banks to that country in retaliation to India May 10, the last date for the
declare as non-performing assets not allowing foreign airlines short-listed players to place a
the accounts of IL&FS and its similar operations here. The US binding bid…
group companies that have has sought detailed filing of all
defaulted on payments… ground operations from Indian
carriers by July 1, multiple people
aware of the development told
ET…
3 May 2019 2
Sector Update| 3 May 2019
Technology
Does Cognizant's guidance cut indicate softening demand?
Cognizant (CTSH) missed its 1QCY19 revenue guidance, cut its CY19 revenue and margin
forecast, and cited unanticipated BFS weakness in the latter half of 1Q to prevail over the
year. There have been sporadic comments by industry peers around client-specific pockets
of weak BFSI. Comments by CTSH on the US BFS environment may contain the
expectations on BFS growth in FY20, notwithstanding its own struggles with three of its
top-5 BFS accounts.
Appended below are the key highlights from their management commentary and
1QCY19 earnings:
Highlights from 1QCY19 performance

 Cognizant’s 1QFY19 revenue was USD4.11, missing consensus estimate of
USD4.17b
 1QCY19 revenue growth was 6.8% YoY in constant currency, missing the
company’s guidance of 7.5%-8.5% YoY CC
 For the full year CY19, CTSH cut its guidance to 3.6%-5.1% in constant
currency, compared to 7-9% earlier.
 Operating margin was 16% in 1Q. It guided for Operating margins of 17%,
which is 100bp lower YoY, compared to earlier outlook for ~100bp expansion
 The weakness is expected to reflect in 2QCY19 revenues as well – expected to
decelerate from 6.8% YoY CC to 3.9%-4.9%
Revenue growth deceleration is expected to continue

CTSH Revenue YoY (%)
10.7 10.6 10.3
8.9 9.1 9.2
8.3 7.9
5.1
3.1
1QCY17
2QCY17
3QCY17
4QCY17
1QCY18
2QCY19
3QCY18
4QCY18
1QCY19
2QCY19G*
*: Guidance midpoint Source: MOFSL
Highlights from management commentary on the earnings call:

 On overall revenue performance and guidance: While the quarter had started
on expected lines, saw deterioration in the second half of the quarter. Revenue
performance reflects both external factors (insourcing) in FS and internal
execution issues. 1Q follows loss of top-line momentum over last 18-24 months.
Some reshaping of the leadership is inevitable when a CEO joins and that is
underway.
 Margins: 16% in 1QCY19. 1Q is seasonally weak due to headcount additions. Full
year guidance is 17%. OPM expectation is lower now, due to headcount
3 May 2019 3
additions outpacing revenues. 2Q margins should be similar to 1Q at ~16%. 2Q
usually has the strongest margin, but expecting a different seasonality this year.
 Cost cutting on the anvil: Will improve cost structure as a means of growth.
Rigorous focus on non-growth investment costs. Focus Pyramid optimization,
overhead structure. Costs to align with lower revenue growth expectation.
 Comments on key business segments
 Insurance – decision making process slowed, especially in large deals.
 BFS – saw more conservative approach to spend in some regional banks.
Spend in 3 out of top-5 clients remains under pressure, while the other two
have improved. Seeing some cautiousness in levels of spend in the second
half of the year. Some pullback in spending is due to M&A. Number of small
pullbacks rather than an-odd customer situation. It was a surprise as the
quarter went on. In search for a new head for BFSI
 Healthcare – several large customers in the payer segment in M&A. Saw
insourcing in one large client . Handful of large clients have been impacting
the performance recently. 1Q was related to the M&A activity. Expect some
more deterioration in 2Q and then for the rest of the year. It is more client-
specific situation. Life Sciences has been very strong.
 Retail, Consumer goods, Travel & Hospitality saw double digit growth YoY.
 CMT grew 19.6% YoY CC, led majorly by software technology clients.
Communications grew slower.
 Digital - now 33% of revenues. revenues grew in the low-20s YoY CC. So no
changes there.
 Attrition at 19% remains elevated.
3 May 2019 4
2 May 2019
4QFY19 Results Update | Sector: Consumer
Britannia Industries
BSE SENSEX S&P CNX
38,981 11,725
CMP: INR2,786 TP: INR3,350 (+20%) Buy
Bloomberg BRIT IN In line results; FY19 ends with accelerated market share gains
Equity Shares (m) 240
M.Cap.(INRb)/(USDb) 669.4 / 9.6
Rural slowdown weighing on near-term outlook
52-Week Range (INR) 3472 / 2610  Consolidated sales increased 10.3% YoY to INR28b (v/s our est. of INR27.5b).
1, 6, 12 Rel. Per (%) -9/-12/-8
Standalone sales grew 11.7% YoY to INR26.7b with 7% volume growth in the
12M Avg Val (INR M) 1004
Free float (%) 49.3 base business (v/s our est. of +6%). Consol. EBITDA grew 9.9% YoY to INR4.4b
(v/s our est. of INR4.4b), while consol. PAT grew 11.7% YoY to INR2.9b (v/s our
Financials & Valuations (INR b) est. of INR3b).
Y/E Mar 2019 2020E 2021E  Consol. gross margin expanded 270bp YoY to 41.2%. Higher other expenses as
Net Sales 110.5 129.1 150.4 % of sales (up 320bp YoY to 21.7%) were slightly offset by lower staff costs as %
EBITDA 17.3 21.4 25.6 of sales (down 40bp YoY to 3.9%). This means that EBITDA margin was flattish
PAT 11.6 14.2 16.8 YoY at 15.6% (down 10bp YoY and 30bp QoQ) v/s our estimate of 16.1%.
EPS (INR) 48.1 59.2 69.8
 FY19 consolidated performance: Sales/EBITDA/Adj. PAT grew 11.5%/15.3%/
Gr. (%) 15.1 23.1 17.8
177.0 187.9 192.8
15.2%. EBITDA margin expanded 50bp YoY to 15.7%.
BV/Sh (INR)
RoE (%) 30.2 32.5 36.7  Conference call highlights: (1) The company has witnessed spectacular growth
RoCE (%) 25.5 28.2 32.4 in market share over the past four months; (2) Innovation share to revenues
P/E (x) 57.9 47.0 39.9 was 4.5% of sales in FY19 and management is targeting to double this number
EV/EBITDA (x) 37.8 30.4 25.3 in the future.
 Valuation and view: There is no material change to our FY20/FY21 EPS
forecasts. In long-term growth prospects, the food & beverage segment
Estimate change continues to remain the most attractive in the consumer space. BRIT’s rapidly
TP change expanding distribution, sustained strong growth in erstwhile weak states,
Rating change rapidly increasing market share and extremely strong traction and ambition in
new launches are creating strong buildings blocks for growth. Continuing
premiumization, significant incremental cost savings and moderate commodity
cost outlook signify bright prospects for further EBITDA margin expansion. We
retain Buy with a target price of INR3,350 (48x FY21 EPS, in-line with 3-year
average).
Consol. Quarterly Performance (INR m)
Y/E March FY18 FY19 FY18 FY19E FY19 Variance
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4QE (%)
Base business volume gr. (%) 2.0 5.0 11.0 11.0 11.0 11.0 7.0 7.0 7.3 9.0 6.0
Net Sales 22,637 25,453 25,675 25,375 25,438 28,696 28,424 27,990 99,140 110,547 27,491 1.8
YoY Change (%) 5.7 6.6 12.5 13.1 12.4 12.7 10.7 10.3 9.5 11.5 8.3
Gross Profit 8,764 9,613 9,930 9,762 10,175 11,491 11,737 11,531 38,069 44,932 11,133
Margins (%) 38.7 37.8 38.7 38.5 40.0 40.0 41.3 41.2 38.4 40.6 40.5
EBITDA 3,285 3,777 3,984 3,971 3,894 4,544 4,518 4,366 15,017 17,334 4,433 (1.5)
Margins (%) 14.5 14.8 15.5 15.6 15.3 15.8 15.9 15.6 15.1 15.7 16.1
YoY Growth (%) 3.9 11.4 26.8 28.9 18.5 20.3 13.4 9.9 17.6 15.4 11.6
Depreciation 332 336 329 424 356 369 424 469 1,421 1,619 453
Interest 13 14 26 24 24 24 30 13 76 91 33
Other Income 352 508 359 444 420 440 600 618 1,664 2,065 456
PBT 3,293 3,934 3,989 3,968 3,933 4,590 4,664 4,502 15,184 17,689 4,404 2.2
Tax 1,133 1,326 1,354 1,330 1,352 1,559 1,658 1,557 5,142 6,125 1,413
Rate (%) 34.4 33.7 33.9 33.5 34.4 34.0 35.5 34.6 33.9 34.6 32.1
Adjusted PAT 2,160 2,609 2,635 2,638 2,581 3,031 3,007 2,946 10,041 11,564 2,991 (1.5)
YoY Change (%) -1.5 11.5 19.6 25.2 19.5 16.2 14.1 11.7 13.5 15.2 13.4
3 May 2019 5
2 May 2019
4QFY19 Results Update | Sector: Metals
Hindustan Zinc
BSE SENSEX S&P CNX
38,981 11,725
CMP: INR272 TP: INR239(-12%) Neutral
Bloomberg
Equity Shares (m)
HZ IN
4,225
Strong opr. performance despite mining challenges
M.Cap.(INRb)/(USDb) 1149.9 / 16.6 12% volume growth but valuations are rich; Maintain Neutral
52-Week Range (INR) 299 / 243  Hindustan Zinc (HZL)’s 4QFY19 EBITDA at INR27.9b (-1% QoQ) came in 8%
1, 6, 12 Rel. Per (%) -4/-8/-22 higher vs. our estimate led by higher silver yield, higher by-product revenue
and better zinc premium. Other income stood at INR5.4b (-2% QoQ; +48%
Free float (%) 35.1
vs. our est). PAT decreased 9% QoQ to INR20b (+4% vs. our estimate). For
Financials & Valuations (INR b)
FY19, EBITDA stood at INR107b (-13% YoY) with PAT at INR80b (-11% YoY).
Y/E March 2019 2020E 2021E  Mine production was 1% lower QoQ (-4% YoY) due to geological challenges
Sales 211 237 247 in Jan & Feb. Refined metal production declined 6% QoQ.
EBITDA 106.7 122.6 125.1  Sales of zinc decreased 5% QoQ to 177kt, while lead declined 4% QoQ to
NP 79.6 91.2 92.7 52kt. Sales of silver though rose 12% QoQ to 199t – indicating higher yield.
Adj. EPS (INR) 18.8 21.6 21.9
 Reported cost of production (CoP) declined USD10/t QoQ to USD987/t on
EPS Gr(%) -10.8 14.6 1.7
BV/Sh. (INR) 79.5 92.1 104.8
higher coal linkage materialization and lower diesel costs, partly offset by
RoE (%) 22.9 25.1 22.3 higher mine development expenses.
RoCE (%) 31.1 31.2 27.6 Volume growth of 12%, yet valuations are rich; Maintain Neutral
P/E (x) 14.4 12.6 12.4 Zinc market is still tight despite muted demand growth. While concentrate
P/BV 3.4 2.9 2.6 supply is expected to rise, market would remain in deficit over medium-term –
thereby supporting zinc prices. We expect mine production to increase by 12%
Estimate change
and CoP should decline as vertical shafts commission at RA and SKM, which will
TP change
be partially offset by higher development cost. At zinc LME of USD2,700/t for
Rating change
FY20E the stock is trading at rich valuations of 7.6x EV/EBITDA. Maintain Neutral
with TP of INR239/sh. based on 6.5x FY20E EV/EBITDA.
Quarterly Performance (Standalone) – INR m
Y/E March FY18 FY19 FY18 FY19 vs Est.
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4QE %
Mine prodn. (kt) 233 219 240 255 212 232 247 245 947 936 245 0
Zinc refined (kt) 190 193 200 210 170 160 187 177 793 694 174 2
Lead refined (kt) 34 40 45 50 42 49 54 52 169 197 53 -2
Silver (tonnes) 110 146 132 167 141 161 178 199 555 679 157 27
Zinc LME (USD/t) 2,589 2,950 3,236 3,180 3,108 2,541 2,631 2,709 3,048 2,751 2,694 1
Net Sales 45,760 53,090 59,220 62,770 53,100 47,770 55,400 54,910 220,840 211,180 51,286 7
Change (YoY %) 80.8 50.6 18.9 0.3 16.0 -10.0 -6.5 -12.5 27.7 -4.4 -18.3
EBITDA 23,840 30,240 32,440 36,200 27,130 23,340 28,380 27,890 122,720 106,740 25,811 8
Change (YoY %) 110.8 45.6 16.5 -3.4 13.8 -22.8 -12.5 -23.0 26.0 -13.0 -28.7
Finance cost 1,370 840 170 450 150 0 510 510 2,830 1,170 0
DD&A 3,600 3,940 4,810 4,590 3,870 4,540 4,890 5,530 16,940 18,830 4,939 12
Other Income 5,300 4,870 2,980 4,860 2,990 3,940 5,500 5,390 18,010 17,820 3,636 48
PBT (before EO item) 24,170 30,330 30,440 36,020 26,100 22,740 28,480 27,240 120,960 104,560 24,508 11
EO exp. (income) 0 -2,910 0 510 0 0 0 0 -2,400 0 0
PBT (after EO item) 24,170 33,240 30,440 35,510 26,100 22,740 28,480 27,240 123,360 104,560 24,508 11
Total Tax 5,410 7,790 8,140 10,460 6,920 4,590 6,370 7,120 31,800 25,000 5,147 38
% Tax 22.4 23.4 26.7 29.5 26.5 20.2 22.4 26.1 25.8 23.9 21.0
Reported PAT 18,760 25,450 22,300 25,050 19,180 18,150 22,110 20,120 91,560 79,560 19,362 4
Adjusted PAT 18,760 22,540 22,300 25,560 19,180 18,150 22,110 20,120 89,160 79,560 19,362 4
Change (YoY %) 80.8 18.5 -3.9 -16.4 2.2 -19.5 -0.9 -21.3 7.2 -10.8 -24.3
3 May 2019 6
2 May 2019
4QFY19 Results Update | Sector: Consumer
Dabur
BSE SENSEX S&P CNX
38,981 11,725
CMP: INR382 TP: INR415 (+9%) Neutral
Bloomberg
Equity Shares (m)
DABUR IN
1,762
Another year of muted earnings/sales growth
M.Cap.(INRb)/(USDb) 675.5 / 9.7 Fair valuations cap upside
52-Week Range (INR) 491 / 359  Consol. sales grew 4.7% YoY to INR21.3b (our estimate: INR22.2b) in 4QFY19.
1, 6, 12 Rel. Per (%) -5/-8/-8 EBITDA was down 5.8% YoY to INR4.6b (our estimate: INR5b), while adj. PAT
increased 8.7% YoY to INR4.3b (our estimate: INR4b). Domestic FMCG business
Free float (%) 32.1
grew 6%, with underlying volume growth of ~4.3% (our estimate: +6%).
 FY19 performance: Sales, EBITDA and adj. PAT grew 10.1%, 7.6% and 9.3%,
Y/E Mar 2019 2020E 2021E respectively. EBITDA margin shrank 50bp YoY to 20.4%.
Net Sales 85.3 94.8 105.4  Concall highlights: DABUR is targeting high-single-digit volume growth in India
EBITDA 17.4 19.5 22.0 FMCG in FY20, with 2-3% realization growth.
NP 15.0 16.2 18.3  Valuation and view: We cut our FY20/21 EPS forecast by ~3%/4% to factor in
EPS (INR) 8.5 9.2 10.4 the company’s weaker-than-expected performance. We note that DABUR was
EPS Gr. (%) 9.0 8.5 12.8
able to deliver a moderate sales recovery in FY19 owing to (a) a base of weak
BV/Sh. (INR) 31.8 35.7 38.8
rural/wholesale channel sales (it has among the highest exposures among
RoE (%) 26.4 27.2 27.9
RoCE (%) 24.1 25.2 25.6 peers) in the preceding two years and (b) requisite corrective actions taken to
P/E (x) 45.1 41.6 36.9 tackle market share losses to Patanjali. Despite this, FY19 turned out to be the
P/BV (x) 12.0 10.7 9.9 third successive year of single-digit EPS growth and the fifth consecutive year
of less than 12% sales growth. The company continues facing challenges in the
form of a large and underperforming international business (~30% of sales) and
Estimate change an unwieldy domestic portfolio of brands, many of which are yet to
TP change demonstrate sustainably strong growth. Valuations are not cheap at 41.6x
Rating change FY20, particularly for a business with moderate earnings growth prospects and
lower-than-peers RoCEs of mid-20s. At the same time, we do acknowledge that
earnings could come in better than expected if rural growth surprises positively
and the new CEO further sharpens the focus on growth. Meanwhile, we
maintain our Neutral rating on the stock with a target price of INR415
(targeting 40x FY21E EPS, close to its three-year average).
Quarterly Perf. (Cons.) (INR M)

Y/E March FY18 FY19 FY18 FY19E FY19 Var.
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4QE (%)
Domestic Vol Growth (%) -4.4 7.2 13.0 7.7 21.0 8.1 12.4 4.3 6.0 11.5 6.0
Net Sales 17,901 19,589 19,664 20,329 20,807 21,250 21,992 21,282 77,483 85,331 22,195 -4.1%
YoY Change (%) -8.3 -1.1 6.1 6.2 16.2 8.5 11.8 4.7 0.6 10.1 9.2
Gross profit 8,755 9,818 10,141 10,305 10,321 10,491 10,839 10,589 39,019 42,240 11,283
Margin (%) 48.9 50.1 51.6 50.7 49.6 49.4 49.3 49.8 50.4 49.5 50.8
EBITDA 3,089 4,199 4,035 4,852 3,861 4,508 4,454 4,572 16,174 17,396 5,007 -8.7%
Margins (%) 17.3 21.4 20.5 23.9 18.6 21.2 20.3 21.5 20.9 20.4 22.6
YoY Growth (%) -11.4 2.7 20.8 16.2 25.0 7.4 10.4 -5.8 7.2 7.6 3.2
Depreciation 391 401 405 426 427 431 449 462 1,622 1,769 459
Interest 133 133 132 132 149 156 167 124 531 596 174
Other Income 813 843 663 732 737 812 753 661 3,052 2,899 713
PBT 3,378 4,508 4,162 5,026 4,022 4,734 4,591 4,647 17,074 17,930 5,086 -8.6%
Tax 589 880 833 1,053 724 961 924 328 3,354 2,937 1,061
Rate (%) 17.4 19.5 20.0 20.9 18.0 20.3 20.1 7.1 19.6 16.4 20.9
Minority Interest 3 9 7 12 6 7 6 11 31 30 14
Adjusted PAT 2,787 3,619 3,321 3,962 3,292 3,766 3,661 4,307 13,689 14,964 4,011 7.4%
YoY Change (%) -4.8 1.3 13.1 18.9 18.1 4.1 10.2 8.7 7.2 9.3 1.3
3 May 2019 7
RESULTS
2 May 2019
FLASH Results Flash | Sector: Technology
L&T Infotech
BSE SENSEX S&P CNX
38,981 11,725
CMP: INR1,721 TP: INR1,950(+13%) Neutral
Conference Call Details In-line; Soft revenues dragged by top client in BFS
rd
Date: 3 May 2019  LTI’s 4QFY19 CC revenue grew 17.5% YoY (estimate of 18%), EBITDA grew 35%
Time: 11:00 IST YoY (estimate of 34%) and PAT grew 12% (estimate of 8%)
Dial-in details:  Over FY19, Constant currency revenue growth stands at 20.9%, EBITDA growth
+91-22-6280 1104 is 56% and PAT growth is 31%
 LTI announced dividend of INR28/share for the full year, pegging total payout
at ~32%
Y/E Mar 2019 2020E 2021E
P&L highlights
Net Sales 94.6 105.9 120.5
 LTI’s 4QFY19 revenues grew 1.9% QoQ in constant currency (17.5% YoY) and
EBITDA 19.4 19.3 21.3
NP 15.8 16.3 17.9 2% QoQ in USD terms (14.5% YoY), in-line with estimates
EPS (INR) 90.1 93.1 102.1  This would imply organic growth of ~1% QoQ, given some contribution from
EPS Gr. (%) 35.8 3.3 9.6 integration of Ruletronics acquisition
BV/Sh. (INR) 279.6 350.4 428.0  Rupee revenue grew 24.2% YoY to INR24.9b, with realized INR/USD weaker by
RoE (%) 36.0 29.6 26.2
9% YoY at 70.3
RoCE (%) 42.9 34.7 31.5
 Volumes grew marginally 1% QoQ. Onsite volume grew 0% QoQ and 11% YoY,
Payout (%) 31.1 20.0 20.0
Div. Yield 1.6 1.1 1.2 while offshore grew faster at 1% QoQ amd 20% YoY
 While the Gross margin at 34% (-80bp QoQ) marginally missed our estimate of
34.2%, SGA at 15.2% was up 100bp QoQ (lin-line with our estimates)
 Higher SGA led to EBITDA margin decline of 140bp to 19.2%, ( vs. our est. of
19%)
 PAT increased 1% QoQ (and grew 12.0% YoY) to INR3.8b, 3.7% beat – mainly
led by higher than expected other income.
Segmental highlights
 Vertical wise growth was led by HiTech, Media & Entertainment and
Manufacturing which grew by 11.3% and 8.1% respectively. BFS declined by
3.0%, while insurance grew marginally 1.6%.
 Services wise Testing and enterprise integration mobility grew by 7.9% and
7.1% respectively while enterprise solutions grew by 6.7%. Application
Development maintenance and infrastructure management services declined
by 1.7% and 1.5% respectively. Analytics, AI & cognitive declined by 4.2%.
 Growth was seen across geographies. Row / India grew 4.6%/6.8% followed by
US which grew 1.3%. Europe saw a marginal growth of 0.6%
Operating metrics
 Attrition increased 100bp QoQ to 17.5%
 Total headcount increased by 656 this quarter and stood at 28,169
 Utilization (excluding trainees) decreased 190bps sequentially to 81.1%
 In the quarter, 14 new logos were added of which 2 were added in the USD
20mn - 50mn (large client) bracket
3 May 2019 8
Quarterly Perf. (INR M)
Y/E March FY18 FY19 FY18 FY19E Est. Var.
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4QFY19 (%/bp)
Revenue (USD m) 259 271 294 309 320 329 347 354 1,132 1,350 355 (0.4)
QoQ (%) 2.0 4.4 8.5 5.3 3.5 2.7 5.6 2.0 16.7 19.3 2.4 (38)
Revenue (INR m) 16,707 17,509 18,837 20,012 21,557 23,312 24,729 24,860 73,065 94,631 25,033 (0.7)
YoY (%) 7.4 9.3 13.0 19.3 29.0 33.1 31.3 24.2 12.4 29.5 25.1 (86)
GPM (%) 33.8 33.9 33.3 33.5 35.2 35.1 34.8 34.0 33.6 35.3 34.2 (21)
SGA (%) 17.0 17.1 16.2 15.9 15.7 14.6 14.2 15.2 16.5 14.8 15.2 -
EBITDA 2,799 2,943 3,215 3,537 4,190 4,790 5,090 4,765 12,494 19,442 4,750 0.3
EBITDA Margin (%) 16.8 16.8 17.1 17.7 19.4 20.5 20.6 19.2 17.1 20.5 19.0 19
EBIT Margin (%) 14.4 14.5 14.9 15.9 17.7 19.0 19.1 17.7 15.0 19.0 17.5 14
Other income 1,084 1,017 883 1,118 1,036 943 288 648 4,101 2,915 479 35.4
ETR (%) 23.4 23.2 23.4 21.3 25.5 25.4 25.2 24.9 22.8 24.5 25.0
Adj PAT 2,673 2,730 2,829 3,380 3,612 4,003 3,755 3,787 11,612 15,157 3,652 3.7
QoQ (%) 4.9 2.1 3.6 19.5 6.9 10.8 -6.2 0.9 -2.7
YoY (%) 13.3 17.4 14.0 32.7 35.1 46.6 32.7 12.0 19.6 30.5 8.0
EPS (INR) 15.3 15.6 16.2 19.3 20.6 22.9 21.5 21.6 66.3 90.1 21.0 2.9
Headcount 22,321 22,554 23,394 24,139 25,150 26,414 27,513 28,169 24,139 28,169 29,153 (3.4)
Util incl. trainees (%) 77.7 79.6 80.3 79.9 79.7 80.4 82.1 80.1 79.4 80.6 80.0 10
Attrition (%) 14.7 15.0 14.6 14.8 15.1 15.3 16.5 17.5
Offshore rev. (%) 53.2 53.4 53.8 54.3 53.2 52.4 52.2 52.2 53.7 52.6 52.5 (27)
E: MOSL Estimates
3 May 2019 9
2 May 2019
4QFY19 Results Update | Sector: Financials
L&T Finance Holdings

BSE SENSEX S&P CNX
38,981 11,725
CMP: INR131 TP: INR170 (+30%) Buy
Bloomberg LTFH IN Steady quarter; ‘Retailization’ theme continues
Equity Shares (m) 1,988  4QFY19 PAT almost doubled YoY to INR5.5b, 7% below our estimate. The
M.Cap.(INRb)/(USDb) 261.5 / 3.8 company reversed INR840m of interest income on ‘amber’ IL&FS accounts,
52-Week Range (INR) 190 / 111
leading to the PAT miss. Adjusting for this, PAT would have beaten our
1, 6, 12 Rel. Per (%) -14/-14/-35
estimate by 2%.
 The focused loan book grew 5% QoQ/ 17% YoY to INR983b driven by strong
Free float (%) 36.1
growth in rural and housing finance. Over the past four quarters, share of rural
Financials & Valuations (INR b) and housing finance increased from 42% to 51%. During the quarter, the
Y/E March 2019 2020E 2021E
strongest growth came from microfinance, 2W finance and real estate finance,
Total Income 64.4 81.9 96.4
while the company scaled back a bit in tractor finance.
PPP 37.5 58.7 69.8
PAT 22.3 26.2 30.8
 Excluding impact of the interest reversal, calculated margins (incl. fee income)
EPS (INR) 11.2 13.1 15.4 were stable QoQ at 6.4%. Operating expenses grew 25% YoY to INR6.5b.
BV/Sh. (INR) 68.4 80.0 93.6 However, excluding ‘net loss on fair value changes’, operating expenses were
RoAA (%) 2.3 2.3 2.3 up only 3% YoY, which is impressive considering investments in the retail
RoE (%) 18.0 17.7 17.8 franchise.
Payout (%) 13.9 11.6 11.6  Asset quality improved meaningfully in the quarter – Gross Stage 3 loans
Valuation declined 80bp QoQ to 5.9% with PCR largely stable at 61%. The contingency
P/E (x) 11.7 10.0 8.5
provision buffer currently stands at INR3.5b (INR2.8b in 3QFY19). Note that the
P/BV (x) 1.9 1.6 1.4
IL&FS exposure is classified as standard.
Div. Yield (%) 1.0 1.0 1.2
 Further, Apis Growth Fund II has entered into an agreement with LTFH to
purchase up to 25.1% stake in LTFH’s IDF for INR7.7b (70% primary investment
and 30% via secondary stake sale).
 Valuation view: Over the past three years, LTFH has delivered a turnaround in
business, with strong improvement in RoE from 10% to 18%, and has
maintained it at these levels for the past three quarters. Also, it’s well on its
journey of ‘retailization’ of its balance sheet. Notwithstanding the tight liquidity
witnessed in the past two quarters, LTFH has been able to grow its focused
products impressively and yet maintain sufficient liquidity. We cut our EPS
estimates for FY20/21E by 1-4%. Buy with a TP of INR170 (1.8x FY21E BVPS).
3 May 2019 10
2 May 2019
4QFY19 Results Update | Sector: Utilities
Tata Power
BSE SENSEX S&P CNX
38,981 11,725
CMP: INR67 TP: INR68 (+2%) Neutral
Bloomberg
Equity Shares (m)
TPWR IN
2,705
FCF generation dragged by capex and receivables
M.Cap.(INRb)/(USDb) 180.5 / 2.6 HPC recommendations can provide relief; Maintain Neutral
52-Week Range (INR) 90 / 60 Tata Power’s (TPWR) 4QFY19 consol. operational performance (EBITDA and PAT of
1, 6, 12 Rel. Per (%) -10/-23/-34 JVs) exhibited an improvement of 11% YoY to INR19.2b, driven by renewables (RE)
and solar manufacturing. However, adj. PAT was down 14% YoY to INR2.3b (our
Free float (%) 67.0
estimate: INR1.95b) due to an increase in interest cost and higher tax.
 Mundra (EBITDA) and coal JVs (PAT) declined 23% YoY to INR2.4b due to lower
Y/E Mar 2019 2020E 2021E coal prices. Realization of coal at KPC mines was down 18% YoY to USD57.5/t.
Net Sales 295.6 291.7 303.6 KPC’s EBITDA/t declined 57% YoY (-17% QoQ) to USD8.8 owing to lower
EBITDA 64.2 67.1 68.7 realization and as cost of production did not reduce as much.
PAT 5.7 14.3 15.1  RE (ex-standalone) EBITDA increased 21% YoY to INR4.9b, led by a 22% YoY
EPS (INR) 2.1 5.3 5.6
increase in generation to 806MU. Capacity increased 11% YoY (5% QoQ) to
Gr. (%) -60.5 150.1 5.6
BV/Sh (INR) 61.8 66.9 69.4 INR1.97GW.
RoE (%) 3.6 8.2 8.2  Regulated business (Mumbai+Delhi+Maithon) was steady as EBITDA increased
RoCE (%) 5.5 6.0 5.9 9% YoY/11% QoQ.
P/E (x) 31.6 12.6 12.0  For FY19, adj. PAT was down 60% YoY to INR5.7b. Coal JVs were impacted by
P/BV (x) 1.1 1.0 1.0
DMO and an increase in mining cost. Interest cost rose 12% YoY to INR41.7b
and tax increased from INR1.6b in FY18 to INR6.5b.
Estimate change
FCF dragged by capex and higher receivables; Maintain Neutral
TP change
Net debt increased to INR490b in FY19 (from INR485b in FY18), despite ~INR26b
Rating change
inflow from the sale of non-core investments. Higher capex (of INR35b) due to RE
and an increase in trade receivables dragged FCF generation. We have cut our
consol. PAT estimate by 21%/16% to INR14.3b/15.1b for FY20/21 as we exclude
earnings from assets classified as held for sale (valuing separately in SOTP) and due
to higher interest cost. The SOTP-based TP is cut to INR68/sh. (prior: INR71) given
higher net debt and lower earnings. We are not building in any benefit from HPC’s
recommendation for Mundra power plants. If approved, it can reduce under-
recoveries at Mundra by about half.
Quarterly Performance (Consolidated) – INR million
Y/E March FY18 FY19 FY18 FY19E FY19 vs Est
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4QE (%)
Net Sales 69,686 76,573 69,499 78,952 73,134 75,146 77,067 72,302 293,312 295,586 88,579 -18
YoY Change (%) 1.9 6.2 4.0 10.2 4.9 -1.9 10.9 -8.4 5.1 0.8 12.2
Total Expenditure 51,375 58,075 57,412 64,075 55,426 56,067 61,050 58,816 229,743 231,359 74,647
EBITDA 18,311 18,498 12,087 14,878 17,708 19,079 16,017 13,487 63,570 64,227 13,932 21
Depreciation 5,857 5,900 5,972 6,454 6,006 6,106 6,027 6,035 23,981 23,931 6,050 0
Interest 9,286 9,814 8,455 8,975 10,130 10,344 10,140 11,087 37,230 41,700 9,670 15
Other Income 313 1,331 911 641 898 1,046 148 1,867 4,327 3,958 1,208 54
Rate regulated activity -2,438 -2,641 1,459 -425 -1,748 -3,727 -1,360 3,433 -4,099 -659 0
PBT before EO expense 1,044 1,474 30 -335 722 -53 -1,362 1,665 2,587 1,895 -579 -388
Extra-Ord expense 0 -1,488 3,151 11,323 14,496 593 2,380 -1,767 10,308 16,200 0
PBT 1,044 -15 3,181 10,988 15,218 540 1,018 -102 12,895 18,095 -579 -82
Tax 2,630 1,553 1,263 -965 1,556 935 1,498 1,152 1,643 6,561 -133
MI & P/L of Asso. Cos. 3,224 3,909 4,197 2,085 3,047 3,752 1,747 1,830 13,514 10,376 2,397
Reported PAT 1,638 2,342 6,115 14,037 16,709 3,358 1,267 576 24,766 21,909 1,952 -71
Adj PAT 1,638 3,830 2,965 2,714 2,213 2,764 -1,113 2,342 14,458 5,710 1,951 20
EBITDA+R.Reg.+JVs 19,669 20,108 18,116 17,275 19,649 19,679 17,183 19,247 75,010 73,696 17,064 13
3 May 2019 11
2 May 2019
4QFY19 Results Update | Sector: Retail
Future Lifestyle Fashions

BSE SENSEX S&P CNX
38,981 11,725
CMP: INR487 TP: INR585(+20%) Buy
Bloomberg FLFL IN
Consistent results; not captured fully in valuation
M.Cap.(INRb)/(USDb) 94.7 / 1.4 FLF showcased robust 4QFY19 performance with strong revenue/EBITDA
52-Week Range (INR) 502 / 359 growth. Revenue grew 29% YoY to INR13.8b (5% beat), driven by 8.6% overall
1, 6, 12 Rel. Per (%) 3/19/3 SSSG, healthy footprint additions and growth in FLF’s brands. EBITDA grew 28%
12M Avg Val (INR M) 70 YoY to INR1.2b (9% beat) due to strong revenue growth. But, margins were flat
Free float (%) 46.5
YoY at 8.9%, as drop in gross margins (attributed to growth in the low margin
Brand Factory (BF) format) were offset by operating leverage benefits. PAT at
Financials & Valuations(INR b)
INR560m was up 166% YoY; however, adjusting for reversal of excess tax
Y/E Mar 2019 2020E 2021E
provision of ~INR350m, PAT stood flat YoY on high depreciation and low other
Net Sales 57.3 69.8 83.2
EBITDA 5.3 6.6 8.0 income. FY19 revenue/EBITDA/PAT grew 27%/27%/50% YoY.
PAT 1.9 2.1 2.8 BF driving growth: BF’s revenue share zoomed to ~35% (v/s ~27% YoY); while
EPS (INR) 9.9 10.8 14.5 revenue jumped 61% YoY to INR4.8b due to healthy 13.1% SSSG (13.7% YoY, est.
Gr. (%) 49.9 8.8 34.6 at 11.1%) and four store additions (est. at nine stores). Central’s revenue too
BV/Sh (INR) 96.0 105.0 117.8 grew at a healthy 14% YoY to INR7.2b backed by 6.5% SSSG (1% YoY); revenue
RoE (%) 11.3 10.7 13.0 share dropped to ~52% (v/s ~59% YoY).
RoCE (%) 11.7 10.6 12.5
Consistent footprint adds to drive growth: The BF format catering to the value
P/E (x) 48.5 44.5 33.1
P/BV (x) 5.0 4.6 4.1
segment with year-round discounted branded apparel products has received
EV/EBITDA (x) 18.7 14.2 11.3 excellent reception. We expect it to record strong 30% revenue CAGR over FY19-
21E, driven by 8% SSSG and 30-store adds annually. Additionally, Central is
Estimate change expected to grow at 13% CAGR over FY19-21E on 6% SSSG and 5-store adds
TP change annually. Own brands should garner 20% revenue CAGR. Subsequently, we
Rating change expect 21% revenue/PAT CAGR as 40bp EBITDA margin expansion should be
compensated by higher depreciation costs.
Valuation compelling – healthy earnings growth offers re-rating potential: The
stock is valued at EV/EBITDA and P/E of 11x/33x on FY21E, which is at a discount
of ~40% v/s our coverage universe. With healthy 21% PAT CAGR over FY19-21E,
improving ROIC, and growing FCF position, the stock should garner better
valuation. We maintain our Buy rating and unchanged TP of INR585, ascribing
14x (~10% premium to the 3-year average) EV/EBITDA.
Consol. - Quarterly Earnings Model (INR m)
Y/E March FY18 FY19 FY18 FY19 FY19 Est Var
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4QE (%)
Net Sales 10,838 11,178 12,256 10,710 13,190 13,360 16,920 13,810 44,982 57,281 13,199 5
YoY Change (%) 35.3 9.7 15.6 8.5 21.7 19.5 38.1 28.9 16.3 27.3 23.2
Total Expenditure 9,842 10,138 11,107 9,750 12,000 12,130 15,260 12,580 40,845 52,022 12,067 4
EBITDA 996 1,040 1,149 960 1,190 1,230 1,660 1,230 4,137 5,259 1,132 9
Margins (%) 9.2 9.3 9.4 9.0 9.0 9.2 9.8 8.9 9.2 9.2 8.6 33bp
Depreciation 334 410 387 410 450 470 510 640 1,539 2,071 527 22
Interest 231 240 225 390 270 280 280 340 1,083 1,168 356 -4
Other Income 63 59 114 110 90 80 130 80 341 383 104 -23
PBT 492 450 651 270 560 560 1,000 330 1,856 2,403 353 -7
Tax 172 147 206 60 190 180 320 -230 586 465 113
Rate (%) 35.0 32.7 31.7 22.2 33.9 32.1 32.0 -69.7 31.6 19.4 32.1
MI & Profit/Loss of Asso. Cos. 0 0 0 0 0 0 0 0 10 48 0
Reported PAT 320 303 444 210 370 380 680 560 1,261 1,890 240 134
Adj PAT 320 303 444 210 370 380 680 210 1,261 1,640 240 -12
YoY Change (%) 75.3 3.2 24.0 0.0 15.6 25.5 53.0 0.0 20.7 30.1 -85.4
Margins (%) 3.0 2.7 3.6 2.0 2.8 2.8 4.0 1.5 2.8 2.9 1.8
3 May 2019 12
RESULTS
2 May 2019
FLASH Results Flash | Sector: Engineering
Blue Star
BSE SENSEX S&P CNX
38,981 11,725
CMP: INR 681 TP: INR755 (+11% ) Neutral
Conference Call Details Strong beat led by UCP margin outperformance
rd
Date: 3 May 2019
Time: 11:00 IST
 Robust revenue growth driven by EMP: Revenue grew by a strong 18.5%
Dial-in details:
+91-22-6280 1102
YoY to INR16b, led by 21% growth in the EMP segment (INR8.4b). UCP
revenue grew 19% YoY to INR7.0b (in-line). For FY19, revenue increased 13%
Financials & Valuations (INR b) YoY, with UCP growth of 9% (to INR22.7b) and EMP growth of 16% YoY (to
Y/E March FY19 FY20E FY21E INR27.5b).
Net Sales 52.3 60.4 68.3  Operating profit supported by UCP margin outperformance: EBITDA grew
EBITDA 3.5 4.3 5.1 81% YoY to INR1.1b (30% beat), with the margin of 6.9% exceeding our
NP 1.9 2.4 2.9
estimate of 5.5% driven by the UCP segment (PBIT margin up 350bp YoY).
EPS (INR) 19.5 24.5 30.7
EPS Gr. (%) 35.1 25.5 25.4 For FY19, EBIDTA grew 30% YoY to INR3.5b, with the margin at 6.6%.
BV/Sh. (INR) 101.7 120.3 143.7  Lower-than-estimated tax rate drives PAT beat: Adjusted PAT came in at
RoE (%) 19.2 20.4 21.4 INR824m (+212% YoY), 71% ahead of our estimate of INR482m. This was
RoCE (%) 33.7 35.4 37.7 also helped by almost nil tax.
Payout (%) 20.0 20.0 20.0
 EMP order book stands at INR24.3b (+16% YoY).
Div. Yield 0.6 0.7 0.9
Quarterly Performance (Consolidated, INR m)

FY18 FY19 FY18 FY19 FY19 Var.
Y/E March 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4QE VsEst
Sales 15,108 8,498 9,320 13,463 15,078 10,322 10,990 15,958 46,390 52,348 15,193 5%
Change (%) 24.9 -4.4 1.6 -1.7 -0.2 21.5 17.9 18.5 5.8 12.8 12.8
EBITDA 1,106 489 424 604 1,367 581 423 1,094 2,659 3,465 839 30%
Change (%) 44.6 21.8 25.1 -15.9 23.6 18.7 -0.2 81.3 19.6 30.3 38.9
As of % Sales 7.3 5.8 4.6 4.5 9.1 5.6 3.9 6.9 5.7 6.6 5.5
Depreciation 125 158 172 183 161 169 183 237 638 749 179
Interest 48 59 74 107 121 117 131 110 287 479 104
Other Income 86 45 36 38 33 49 104 61 170 247 43
Extra-ordinary Items 0 0 0 -53 -152 27 72 26 53 27 0
PBT 1,019 318 214 405 1,270 317 142 782 1,850 2,457 599 31%
Tax 259 95 58 82 325 78 10 7 494 420 178
Effective Tax Rate (%) 25 30 27 20 26 25 7 1 27 17 30
MI/Share of profit from JV 1 4 (22) (5) (29) (43) (141) 23 (22) (191) 61.1
Reported PAT 762 227 134 317 916 196 (9) 798 1,440 1,900 482 66%
Change (%) 51.1 18.0 -5.8 -16.8 20.3 -14.0 -107.0 151.9 12.7 32.0 52.0
Adj PAT 762 227 134 264 764 223 62 824 1,387 1,873 482 71%
Change (%) 48.2 13.9 -7.9 -29.0 0.3 -2.0 -53.4 212.1 12.7 35.1 82.4
3 May 2019 13
2 May 2019
4QFY19 Results Update | Sector: Technology
Zensar Technologies
BSE SENSEX S&P CNX
38,981 11,725
CMP: INR246 TP: INR285(+16%) Buy
Bloomberg ZENT IN Revenue turnaround near completion, margins could follow
 Strong exit to FY19 augurs well going forward: ZENT’s FY19 revenue grew
M.Cap.(INRb)/(USDb) 55.3 / 0.8
52-Week Range (INR) 352 / 196 17.6% YoY to USD567m, EBITDA increased 30% YoY to INR4,766m (margin of
1, 6, 12 Rel. Per (%) 6/-16/-16 12%) and PAT rose 31.8% YoY to INR 3,137m. Organic revenue growth was
12M Avg Val (INR M) 50 ~9% in USD terms and in double-digit on factoring in the RoW
Free float (%) 51.1
discontinuation and the impact from cross currencies. ZENT announced a
total dividend of INR2.8/share for FY19, which implies a payout ratio of 20%.
Y/E Mar 2019 2020E 2021E
4QFY19 revenue increased 19% YoY (above our estimate of +15% YoY) to
Net Sales 39.7 44.5 50.8 USD150m, with 50% of incremental revenue coming from strong QoQ
EBITDA 4.9 5.7 6.8 growth in the acquired entities. EBITDA margin expanded 160bp QoQ (our
PAT 3.1 3.7 4.3 estimate: + 70bp) to 12.5%, supported by some write-back of earlier-period
EPS (INR) 13.8 16.2 19.0 provisions. PAT grew 14% YoY (our estimate: -2%) to INR829m – the
Gr. (%) 29.9 17.2 17.4
outperformance here was driven by higher operational income and other
BV/Sh (INR) 85.9 98.2 113.1
RoE (%) 17.3 17.6 18.0
income (INR279m v/s our estimate of INR156m).
RoCE (%) 20.6 20.7 21.9  Deal traction should help sustain revenue momentum: ZENT won deals
P/E (x) 17.8 15.2 12.9 with a total contract value of USD750m in FY19, on the base of ~USD400m in
P/BV (x) 2.9 2.5 2.2 the previous fiscal. The deal pipeline remains strong, unaffected in ZENT’s
targeted industries/clients by any ongoing macro uncertainty. While growth
in FY19 (organically) was driven by Hi-tech and Insurance verticals,
Estimate change
Manufacturing should add to it in FY20. This collectively drives our
TP change
Rating change confidence of sustained revenue momentum. Retail should take another
couple of quarters before returning to sustained growth.
 Two-pronged levers to margin expansion: ZENT’s EBITDA margin in the core
business is 14.1% (93.5% of revenues) compared to the overall margin of
12.4%. It expects to get the core margin to 15%, with levers of: [1] margin-
accretive cloud infrastructure deals, [2] operational efficiencies from
utilization and a reduction in sub-contractor expenses and [3] realization
improvement in Digital business. Also, the non-core business should
gradually wind down to zero, which should support further margin
enhancement through a business mix-based improvement.
 Valuation view: ZENT’s turnaround efforts have been more protracted with
the overhaul in US sales, the addition of inorganic digital capabilities, the
discontinuation of non-core business and the long tail of non-scalable
accounts. This is now nearing completion, with the Retail vertical turnaround
and the sale of the third-party maintenance business the remnant areas to
address. This drives our expectation of 12.4%/17.4% USD revenue/EPS CAGR
over FY19-21. Our price target of INR285 discounts forward earnings by 15x
and implies a 16% upside. Maintain Buy.
3 May 2019 14
Quarterly Performance (Consolidated) (INR Million)
Y/E March FY18 FY19 FY18 FY19E Est. Var. (% /
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4QFY19 bp)
Revenue (USD m) 114 119 123 127 135 138 144 150 482 567 146 3.0
QoQ (%) 2.2 3.8 3.4 3.3 6.6 2.3 4.1 4.5 5.0 17.6 1.4 304bp
Revenue (INR m) 7,367 7,626 7,937 8,147 9,047 9,687 10,355 10,574 31,077 39,663 10,245 3.2
YoY (%) -2.5 -1.0 0.9 9.6 18.6 22.0 27.1 16.9 1.7 27.6 13.2 364bp
GPM (%) 27.6 28.8 30.1 29.4 30.7 29.0 26.8 28.5 29.0 28.7 26.4 204bp
SGA (%) 17.3 17.0 16.6 17.1 16.5 16.5 16.0 16.5 17.0 16.3 15.0 150bp
EBITDA 758 901 1,071 999 1,232 1,250 1,124 1,321 3,729 4,927 1,173 12.6
EBITDA Margin (%) 10.3 11.8 13.5 12.3 13.6 12.9 10.9 12.5 12.0 12.4 11.4 105bp
EBIT Margin (%) 7.8 9.6 11.5 10.6 11.6 10.6 8.6 10.1 9.9 10.2 9.2 87bp
Other income 193 194 49 230 169 391 5 228 666 793 156 45.9
ETR (%) 32.0 26.2 33.0 28.8 27.8 28.1 28.0 29.9 29.9 28.5 28.0
PAT 472 625 591 726 821 934 553 829 2,414 3,137 712 16.4
QoQ (%) 354.7 32.6 -5.5 22.8 13.0 13.8 -40.8 49.9 28.7
YoY (%) -36.3 -11.2 -26.2 599.7 73.9 49.3 -6.4 14.2 2.8 29.9 -1.9
EPS (INR) 2.1 2.8 2.6 3.2 3.6 4.1 2.4 3.7 10.7 13.8 3.2
Headcount 8,567 8,414 8,597 8,905 9,122 9,482 9,813 10,073 8,905 9,863 9,863 2.1
Utilization (%) 83.2 85.9 84.8 83.8 85.8 82.6 81.7 83.4 84.4 83.4 83.4 0bp
Offshore rev. (%) 37.5 37.5 37.0 37.3 35.4 33.6 32.6 32.6 37.3 34.0 33.7 -106bp
3 May 2019 15
RESULTS
2 May 2019
FLASH Results Flash | Sector: Healthcare
Laurus Labs
BSE SENSEX S&P CNX
38,981 11,725
Strong beat on revenue/EBITDA/PAT
Conference Call Details  Sales increased 13.4% YoY to INR6.3b (our estimate: INR5.6b) in 4QFY19, led by
rd
Date: 3 May 2019
(a) strong growth in Oncology APIs (11% of sales; +91% YoY), (b) Other APIs
Time: 3:00pm IST
(10% of sales; +40% YoY) and (c) Synthesis (15% of sales; +74% YoY).
Dial-in details:
Formulation (FDF) sales came in at INR282m, significantly higher than INR14m
+91-22-6280 1214
in the year-ago period. Hep-C API sales increased to INR415m from INR197m in
the previous quarter. However, growth was impacted by a reduction in base
ARV API business (50% of sales; -14% YoY).
 For FY19, Oncology was the major revenue driver, with growth of 34% YoY to
Y/E Mar FY19 FY20E FY21E INR2.1b. FDFs also impressed with sales of INR545m versus only INR52m in
Net Sales 22.9 25.7 30.2 4QFY18. ARV API sales stood at INR14b (+4% YoY); Hep-C API sales were at
EBITDA 3.8 5.0 6.2 INR1.1b (-28% YoY) on a full-year basis.
NP 1.1 1.9 2.8  Gross margin (GM) shrank 190bp YoY (stable QoQ) to 46% due to a change in
EPS (INR) 10.4 18.1 26.3 the product mix. EBITDA margin contracted 320bp YoY to 17.6% owing to lower
EPS Gr. (%) -34.5 74.0 45.7 GM and higher other expenses (16.9% v/s 15.2% in 4QFY18). Employee cost
BV/Sh. (INR) 150.4 168.1 193.8 was stable YoY. Absolute EBITDA declined 4% YoY to INR1.1b (our estimate:
RoE (%) 7.1 11.3 14.5
INR918m).
RoCE (%) 7.0 9.7 11.8
 Consequently, adj. PAT was down 4% YoY to INR432m (our estimate:
P/E (x) 38.8 22.3 15.3
INR224m).
P/BV (x) 2.7 2.4 2.1
 On a full-year basis, the company reported sales of INR23b (+11% YoY), EBITDA
of INR3.7b (-9% YoY) and PAT of INR1b (-34% YoY).
Other highlights
 FDF-related opex stood at INR1.4b for FY19 (incl. R&D spend of INR684m).
 Capacity expansion for Lamivudine is now complete.
 Unit VI received EIR after USFDA inspection.
 For FY19, total R&D spend stood at INR1.6b (7.4% of sales).
 Total ANDA/NDA filings now stand at 19.
Consol. - Quarterly perf. (INR m)

Y/E March FY18 FY19 FY18 FY19 FY19 vs Est
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4QE (%)
Net Sales 4,912 5,386 4,789 5,602 5,390 5,883 5,295 6,352 20,690 22,919 5,658 12.3
YoY Change (%) 17.9 2.5 -5.2 18.3 9.7 9.2 10.5 13.4 7.7 10.8
Total Expenditure 3,947 4,260 3,916 4,434 4,535 4,972 4,417 5,232 16,557 19,155 4,739 10.4
EBITDA 965 1,126 874 1,169 856 911 877 1,120 4,133 3,764 918 21.9
Margins (%) 19.6 20.9 18.2 20.9 15.9 15.5 16.6 17.6 20.0 16.4
Depreciation 298 301 310 346 382 398 427 435 1,254 1,642
Interest 191 195 178 233 223 246 237 176 796 882
Other Income 75 16 99 51 26 105 14 16 242 162
PBT before EO expense 552 646 486 641 276 372 228 526 2,324 1,402 369 42.3
Extra-Ord expense 0 -50 0 0 50 154 0 0 -50 204
PBT 552 696 486 641 226 218 228 526 2,374 1,198 369 42.3
Tax 163 208 137 190 61 56 50 94 698 260 145 -35.2
Rate (%) 29.5 30.0 28.2 29.7 27.0 25.6 21.7 17.9 29.4 21.7
Reported PAT 389 487 349 451 165 162 178 432 1,676 938 224 92.4
Adj PAT 389 452 349 451 202 277 178 432 1,641 1,097 224 92.4
YoY Change (%) 51.7 -11.0 -26.4 -39.3 -48.1 -38.8 -48.9 -4.2 -17.2 -33.1
Margins (%) 7.9 8.4 7.3 8.0 3.7 4.7 3.4 6.8 7.9 4.8
3 May 2019 16
2 May 2019
4QFY19 Results Update | Sector: Retail
Shoppers Stop
BSE SENSEX S&P CNX
38,981 11,725
CMP: INR467 TP: INR520(+11%) Neutral
Bloomberg SHOP IN
Growth trend lackluster but cost efforts appreciable
M.Cap.(INRb)/(USDb) 41.1 / 0.6 Cost efforts drive earnings in an otherwise muted quarter: Standalone revenue
52-Week Range (INR) 690 / 432 declined 7% YoY to INR7.9b (5% miss), with the impact of the GST and the new
1, 6, 12 Rel. Per (%) -1/-14/-28 accounting standard on revenue recognition (Ind-AS 115) coming into play.
12M Avg Val (INR M) 45 However, adjusted for the aforesaid factors, revenue was up 4.7% YoY. EBITDA
Free float (%) 36.3 grew strongly by 15% YoY to INR591m (19% beat), driven by lower employee
and SG&A cost. Consequently, the margin expanded 140bp YoY to 7.5% (our
Financials & Valuations(INR b) estimate: 5.9%). Despite this, PAT declined 45% YoY to INR115m (25% miss) due
Y/E Mar 2019 2020E 2021E to the steep 68% YoY increase in depreciation cost (due to a change in the
Net Sales 35.8 39.4 43.1 estimated useful life of assets) and the normalization of taxes relative to the
EBITDA 2.5 2.9 3.4 same period last year. For FY19, revenue fell 3%, while adj. PAT was up 31%.
PAT 0.7 1.1 1.3
Concall highlights: For FY20, SHOP expects (1) mid- to high-single-digit LTL
EPS (INR) 7.8 13.2 15.9
growth, (2) low-double-digit revenue growth and (3) 40-50bp/80-100bp
Gr. (%) -36.3 70.0 19.9
gross/EBITDA margin expansion.
BV/Sh (INR) 109.5 122.8 138.6
RoE (%) 7.1 11.4 12.1
Modest store adds a reflection of pain points in growth; margin prospects
RoCE (%) 7.4 11.1 11.9 appear good though: Slower pace of mall openings and
P/E (x) 60.0 35.3 29.4 geographical/economical limitations for a large-scale branded apparel store
P/BV (x) 4.3 3.8 3.4 restricted SHOP’s ability to add new stores (as evident in FY19), impacting its
EV/EBITDA (x) 16.8 14.1 11.7 revenue growth. Nevertheless, we expect some pick-up in the pace of new store
adds over the coming years – 4/15 new store adds for Shoppers Stop/Beauty
Estimate change format in FY20/21 (v/s net adds of 0/12 in FY19). This, coupled with 6% SSSG for
TP change Shopper's Stop stores, is likely to drive 10% consol. revenue CAGR over FY19-21.
Rating change Despite modest revenue growth, the increasing thrust on private labels and cost-
efficiency measures should drive margins expansion of 100bp over FY19-21.
Valuation at discount to peers; growth initiatives key to re-rating: At FY21E
EV/EBITDA of 12x and P/E of 29x, the stock’s valuation multiples significantly
trail those of our other coverage companies due to the company’s relatively
muted performance. We, thus, maintain our Neutral rating with an SOTP-based
target price of INR520. In our view, the initiatives that SHOP takes to accelerate
growth going forward are very crucial, especially from a re-rating perspective.
Standalone - Quarterly Earning Model (INR m)
Y/E March FY18 FY19 FY18 FY19 FY19E Est. Var
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q (%)
Revenue 9,411 8,376 9,632 8,496 8,266 8,645 9,991 7,911 35,915 34,813 8,329 -5
YoY Change (%) 21.9 -12.2 -4.7 -6.7 NA -8.1 19.3 -17.9 -1.6 -3.1 14.2
Total Expenditure 9,110 7,869 8,839 7,980 7,851 8,105 9,020 7,320 33,798 32,280 7,833 -7
EBITDA 301 507 794 516 415 540 972 591 2,117 2,533 495 19
Margins (%) 3.2 6.0 8.2 6.1 5.0 6.3 9.7 7.5 5.9 7.3 5.9 152bp
Depreciation 282 266 300 271 306 311 278 455 1,119 1,351 300
Interest 134 106 92 30 28 27 30 25 362 124 28
Other Income 54 61 34 12 72 26 29 53 160 179 31
PBT before EO expense -62 195 436 227 152 229 692 164 796 1,237 199 -17
Extra-Ord expense 0 338 166 0 0 0 0 0 504 0 0
PBT -62 -143 269 227 152 229 692 164 292 1,237 199
Tax -24 75 106 19 54 96 249 50 176 449 45.3
Rate (%) 39.6 -52.6 39.3 8.3 35.8 42.2 35.9 30.1 60.2 36.3 22.8
Reported PAT -37 -218 163 208 98 132 443 115 116 788 153 -25
Adj PAT -37 298 264 241 98 132 469 302 765 1,001 153 97
YoY Change (%) -72.6 178.4 39.1 -10.1 -363.0 -55.6 77.6 25.4 -102.5 30.8 NA
Margins (%) -0.4 3.6 2.7 2.8 1.2 1.5 4.7 3.8 2.1 2.9 1.8
3 May 2019 17
Sector Update| 2 May 2019
Automobiles
Bajaj Auto
CMP: INR3,032 TP: INR3,131 (+3%) Neutral
Stock Info
Bloomberg BJAUT IN
Equity Shares (m) 289.4
Wholesales of 423.3k units in line with estimate
M.Cap. (INR b) / (USD b) 878/12.7 Domestic volumes up 1% YoY, exports up 3% YoY
52-Week Range (INR) 3214 / 2425
1, 6, 12 Rel. Per (%) 4/3/-9  BJAUT’s sales increased 2% YoY to 423.3k units (in-line) in Apr’19.
 Domestic volumes grew 1.2% YoY to 232k units (our estimate: 240k units), while
Financial & Valuation (INR b) exports increased 3% YoY to 191.2k units (our estimate: 166.5k units).
Y/E MARCH 2019 2020E 2021E  2W volumes grew 4.8% YoY to 366.3k units. Domestic motorcycle dispatches increased
Sales 300 337 374 2.6% YoY to 205.9k units. Motorcycle exports grew 7.7% YoY to 160.4k units.
EBITDA 49.5 56.9 61.7  3W volumes declined by 13% YoY to 57k units (our estimate: 60k units), as
Consol. NP 47.2 52.0 56.6 domestic/export volumes fell 8.7%/16.3% YoY to 26k units/30.8k units.
ConsEPS(INR) 163 180 196  The stock trades at 16.9x/15.5x FY20E/21E consol. EPS. Maintain Buy.
EPS Gr. (%) 7.8 10.3 8.8
BV/Sh. (INR) 739 822 914
RoE (%) 23.3 23.0 22.5
RoCE (%) 21.0 20.8 20.3
Valuation
P/E (x) 18.6 16.9 15.5
P/BV (x) 4.1 3.7 3.3
EV/EBITDA (x) 13.6 11.4 10.1
Snapshot of volumes for April-19

YoY MoM Residual FY20
Residual
YoY MoM FY20 FY19 (%) FY20 Monthly Monthly
Company Sales Apr-19 Apr-18 Mar-19 Gr. (%) Gr. (%)
(%) chg (%) chg YTD YTD chg estimate Run rate Run rate
Bajaj Auto 423,315 415,168 2.0 393,351 7.6 423,315 415,168 2.0 5,444,965 8.5 9.1 456,514 423,315
Motorcycles 366,268 349,617 4.8 323,538 13.2 366,268 349,617 4.8 4,635,187 9.4 9.8 388,084 366,268
Total Two-Wheelers 366,268 349,617 4.8 323,538 13.2 366,268 349,617 4.8 4,635,187 9.4 9.8 388,084 366,268
Three-Wheelers 57,047 65,551 -13.0 69,813 -18.3 57,047 65,551 -13.0 809,778 3.5 5.0 68,430 57,047
Domestic 232,104 229,464 1.2 259,185 -10.4 232,104 229,464 1.2 3,126,654 6.3 6.8 263,141 232,104
Exports 191,211 185,704 3.0 134,166 42.5 191,211 185,704 3.0 2,318,311 11.5 12.4 193,373 191,211
3 May 2019 18
Hero MotoCorp
CMP: INR2,552 TP: INR2,912 (+14%) Neutral
Stock Info
Bloomberg HMCL IN
Equity Shares (m) 199.7 Wholesales down 17% YoY to 574.4k (in-line)
M.Cap.(INR b)/ (USDb) 510/7.3 Continued challenging market conditions
52-Week Range (INR) 3819 / 2478
1, 6, 12 Rel. Per (%) -1/-23/-41  Apr-19 volumes declined 17% YoY to 574,366 units (in-line).
 HMCL trades at 14.4/13.8x FY20E/21E EPS. Maintain Neutral.
Financials Snapshot (INR b)
Y/E MARCH 2019 2020E 2021E
Sales 336.5 360.4 398.7
EBITDA 49.3 52.3 55.5
NP 33.8 35.4 37.0
Adj. EPS (INR) 169.5 176.8 184.7
EPS Gr. (%) -8.5 4.3 4.5
BV/Sh. (INR) 643.7 710.6 780.8
RoE (%) 27.5 26.1 24.8
RoCE (%) 26.4 25.2 23.9
Valuations
P/E (x) 15.1 14.4 13.8
P/BV (x) 4.0 3.6 3.3
EV/EBITDA (x) 9.1 8.3 7.6

Residual
YoY MoM FY20 FY19 (%) FY20 Gr. Monthly Monthly
Company Sales Apr-19 Apr-18 Mar-19 Gr. (%)
(%) chg (%) chg YTD YTD chg estimate (%) Run rate Run rate
Hero MotoCorp 574,366 694,022 -17.2 581,279 -1.2 574,366 694,022 -17.2 8,253,171 5.5 7.7 698,073 574,366
3 May 2019 19
TVS Motor
CMP: INR 479 TP: INR480 Neutral
Stock Info
Bloomberg TVSL IN
Equity Shares (m) 475.1 Wholesales increase 4.7% YoY to 319k units (in-line)
M.Cap.(INR b)/ (USDb) 228/3.3
Domestic sales up 2.6% YoY, exports up 12.6% YoY
1, 6, 12 Rel. Per (%) 0/-25/-36
 Wholesales stood at 319k units in Apr’19 (in line with our estimate of 310.8k units).
Financials Snapshot (INR b)  Domestic volumes grew 2.6% YoY, while exports (22% of volumes) rose 12.6% YoY.
Y/E MARCH 2019 2020E 2021E  Motorcycle volumes increased 8.6% YoY to 143.1k units (our estimate: 137k units).
Sales 182.1 204.7 236.9  Scooter volumes increased 9.1% YoY to 97.3k units (our estimate: 93.5k units).
EBITDA 14.3 17.5 21.1
 Moped dispatches declined 9.6% YoY to 65.5k units (our estimate: 67.5k units).
Adj. PAT 6.7 8.6 10.9
 3W volumes increased 15.2% YoY, led by healthy export sales.
EPS (INR) 14.1 18.1 22.9
 The stock trades at 26.4x/20.9x FY20E/21E EPS. Maintain Neutral.
EPS Gr. (%) 1.1 28.6 26.2
BV/Sh (INR) 70.5 84.1 102.2
RoE (%) 21.5 23.5 24.6
RoCE (%) 22.4 24.7 28.1
Valuations
P/E (x) 34.0 26.4 20.9
P/BV (x) 6.8 5.7 4.7
EV/EBITDA (x) 17.1 13.7 11.2

Residual
TVS Motor 318,987 304,795 4.7 325,345 -2.0 318,987 304,795 4.7 4,446,093 13.6 14.4 375,191 318,987
Motorcycles 143,063 131,704 8.6 141,086 1.4 143,063 131,704 8.6 1,862,534 19.4 20.3 156,316 143,063
Scooters 97,323 89,245 9.1 98,477 -1.2 97,323 89,245 9.1 1,447,929 11.3 11.4 122,782 97,323
Mopeds 65,497 72,469 -9.6 71,338 -8.2 65,497 72,469 -9.6 943,430 5.2 6.5 79,812 65,497
Three-Wheelers 13,104 11,377 15.2 14,444 -9.3 13,104 11,377 15.2 192,200 22.9 23.5 16,281 13,104
Total Domestic 249,422 242,997 2.6 248,940 0.2 249,422 242,997 2.6 3,491,407 10.8 11.4 294,726 249,422
Total Exports 69,565 61,798 12.6 76,405 -9.0 69,565 61,798 12.6 954,686 25.3 26.5 80,466 69,565
3 May 2019 20
Ashok Leyland
Stock Info
Bloomberg AL IN
Equity Shares (m) 2,827.1 Wholesales above estimate at 13.6k units
MHCVs sales up 4% YoY, while LCV sales up 15.4% YoY
1, 6, 12 Rel. Per (%) -1/-35/-55
 Apr-19 wholesale dispatches increased 7.5% YoY to 13.6k units, exceeding our
Financials Snapshot (INR b) estimate.
Y/E MARCH 2019 2020E 2021E  M&HCV volumes, which account for 68.5% of total volumes, rose 4% YoY (-41.7%
Sales 291.3 342.6 347.7 MoM) to 9.3k units (our estimate: 8.5k units).
EBITDA 31.4 37.0 31.6
 LCV sales grew 15.4% YoY to 4.3k units (our estimate: 3.9k units).
NP 20.4 21.3 17.5
 The stock trades at 11.9x/14.5x FY20E/21E EPS, and at 5.9x/6.1x EV/EBITDA. Maintain
Adj. EPS (INR) 7.0 7.3 6.0
EPS Gr. (%) 16.9 4.7 -18.0
Buy.
BV/Sh. (INR) 28.2 32.3 35.1
RoE (%) 26.4 24.1 17.7
RoCE (%) 23.0 21.1 15.7
Valuations
P/E (x) 12.5 11.9 14.5
P/BV (x) 3.1 2.7 2.5
EV/EBITDA (x) 7.4 5.9 6.7

Residual
Ashok Leyland 13,626 12,677 7.5 21,535 -36.7 13,626 12,677 7.5 230,781 16.9 17.6 19,741 13,626
CV (ex LCV) 9,346 8,968 4.2 16,034 -41.7 9,346 8,968 4.2 165,303 15.7 16.5 14,178 9,346
LCV 4,280 3,709 15.4 5,501 -22.2 4,280 3,709 15 65,479 20.1 20.5 5,564 4,280
3 May 2019 21
Mahindra & Mahindra
Stock Info
Bloomberg MM IN
Equity Shares (m) 1209 Wholesales miss our estimate as UVs disappoint
M.Cap.(INR b)/(USD b) 768/11 Tractor sales down ~8%, UV sales down 9.3% YoY
1, 6, 12 Rel. Per (%) -3/-29/-36
 MM’s tractor volumes of 28.6k units (-7.7% YoY) were above our estimate of 26.5k
Financials Snapshot (INR b) units.
Y/E MARCH 2019 2020E 2021E  UV (incl. pick-ups) sales declined 9.3% YoY to 38.4k (our estimate: 44k). Domestic
Net Sales 529.3 582.8 610.9 passenger UV and domestic pick-up segment sales declined each by 7% YoY.
EBITDA 63.4 71.7 71.8  3W volumes declined 0.3% YoY to 4.3k.
PAT* 51.2 49.5 48.4  Commenting on the month’s performance, Rajan Wadhera, President – Automotive
EPS (INR)* 43.0 41.6 40.7 Sector, M&M Ltd said: “The ongoing election has subdued the purchase sentiment
Gr. (%) 18.5 -3.4 -2.2 during April. This, according to us, is a temporary phenomenon. We believe, following
BV/Sh (INR) 283 312 341
the elections the auto industry will see a revival in consumer demand. Supported by a
RoE (%) 14.2 13.1 11.7
normal monsoon, we are confident of seeing higher sales in FY20.”
RoCE (%) 13.2 12.3 11.0
Valuations
 Commenting on the month’s performance, Rajesh Jejurikar, President – FES Sector,
Consol P/E (x) 15.9 14.6 14.5 M&M Ltd said: “We have sold 27,495 tractors in the domestic market during April
P/BV (x) 2.3 2.1 1.9 2019. We expect that the prediction of a normal southwest monsoon will bring
*incl. MVML positive sentiment and boost tractor demand. In the exports market, we have sold
1,057 tractors, a growth of 2% over April 2018.”
 The stock trades at 14.5x FY21E consol. EPS. Maintain Buy.

Residual
YoY MoM FY19 (%) FY20 Gr. Monthly Monthly
Company Sales Apr-19 Apr-18 Mar-19 FY20 YTD Gr. (%)
(%) chg (%) chg YTD chg estimate (%) Run rate Run rate
Mahindra & Mahindra 72,273 79,022 -8.5 82,640 -12.5 72,273 79,022 -8.5 1,023,936 8.1 9.6 86,515 72,273
UV (incl. pick-ups) 38,368 42,302 -9.3 54,057 -29.0 38,368 42,302 -9.3 585,366 12.0 13.9 49,727 38,368
LCV & M&HCV 1,037 1,468 -29.4 1,952 -46.9 1,037 1,468 -29.4 22,882 18.9 22.9 1,986 1,037
Three-Wheelers 4,316 4,327 -0.3 6,943 -37.8 4,316 4,327 -0.3 72,035 8.0 8.6 6,156 4,316
Tractors 28,552 30,925 -7.7 19,688 45.0 28,552 30,925 -7.7 343,653 4.0 5.2 28,646 28,552
3 May 2019 22
Tata Motors
CMP: INR207 TP: INR195 (-6%) Neutral
Stock Info
Bloomberg TTMT IN Wholesales of 44k units below our estimate of 54.6k
Equity Shares (m) 3396.6 CV sales down 20.5% YoY, PV sales down 26% YoY
 Apr-19 sales declined 19.5% YoY to 44k units, below our estimate of 54.6k units.
1, 6, 12 Rel. Per (%) 10/-2/-49
 CV volume declined 20.5% YoY to 31k units (our estimate: 38k).
Financials Snapshot (INR b)  M&HCV volumes were down 30.1% YoY to 12.7k units (our estimate: 16.6k).
Y/E MARCH 2019 2020E 2021E  LCV volumes declined 12.1% YoY to 18.4k units (our estimate: 21.5k).
Net Sales 3,056 3,298 3,473  PV sales declined 26.1% YoY to 12.8k units (our estimate: 16.5k), car segment volumes
EBITDA 309.4 397.2 445.6 declined 42.6% YoY to 6.1k units (our estimate: 8.3k units), while UV volumes grew
NP -24.7 41.3 53.2
0.5% YoY to 6.7k units (our estimate: 8.3k units).
Adj. EPS (INR) -7.3 12.2 15.7
 The stock trades at 13.2x FY21E consol. EPS and 3.4x EV/EBITDA. Maintain Neutral.
EPS Gr. (%) -132 -267 28.8
BV/Sh. (INR) 191.0 202.8 218.2
RoE (%) -3.1 6.2 7.4
RoCE (%) 4.9 6.2 6.7
Valuations
P/E (x) -28.5 17.0 13.2
P/BV (x) 1.1 1.0 0.9
EV/EBITDA (x) 4.7 3.7 3.4

Residual
YoY MoM FY20 FY19 FY20 Gr. Monthly Monthly
Company Sales Apr-19 Apr-18 Mar-19 (%) chg Gr. (%)
(%) chg (%) chg YTD YTD estimate (%) Run rate Run rate
Tata Motors 43,979 56,521 -22.2 74,179 -40.7 43,979 56,521 -22.2 845,265 15.6 18.8 72,844 43,979
HCV's 12,771 18,271 -30.1 24,785 -48.5 12,771 18,271 -30.1 266,600 18.0 22.2 23,075 12,771
LCV's 18,392 20,915 -12.1 31,284 -41.2 18,392 20,915 -12.1 344,351 18.0 20.3 29,633 18,392
CV's 31,163 39,186 -20.5 56,069 -44.4 31,163 39,186 -20.5 610,950 18.0 21.2 52,708 31,163
Cars 6,126 10,676 -42.6 9,095 -32.6 6,126 10,676 -42.6 142,779 6.9 11.2 12,423 6,126
UV's 6,690 6,659 0.5 9,015 -25.8 6,690 6,659 0.5 91,536 14.9 16.3 7,713 6,690
3 May 2019 23
March 2019 Results Preview| Sector: Cement
Birla Corporation
Bloomberg BCORP IN
CMP: INR 523 Buy
 4QFY19 consolidated cement volumes are estimated to increase
M. Cap. (INR b)/(USD m) 40 / 1
5.6% YoY to 3.6m tons, led by growth in underlying market.
1,6,12 Rel Perf. (%) -5 / -28 / -49
Realizations are estimated to increase by 2% QoQ to
INR4,638/ton, led by healthy prices in the central region.
Financial Snapshot (INR Billion)  We estimate blended EBITDA/ton at INR745 (+INR100/t QoQ), led
Y/E March 2018 2019E 2020E 2021E by INR85/t QoQ increase in realization. EBITDA margin is
Sales 57.3 64.2 71.4 77.3 expected to expand 2.05pp QoQ to 15.4%.
EBITDA 8.1 9.1 11.5 13.6  Consolidated EBITDA is likely to increase 7% YoY and 29% QoQ to
NP 1.5 2.3 4.0 5.7 INR2.68b. We expect the company to report PAT of INR1.05b in
Adj. EPS INR 18.9 30.2 52.4 73.4 4QFY19 (-4% YoY).
EPS Gr. (%) -35.6 59.9 73.4 39.9  The stock trades at a P/E of 10x (FY20E) and 7.1x (FY21E),
BV/Sh. (INR) 556 574 615 677 EV/EBITDA of 6.3x (FY20E) and 5.1x (FY21E), and EV/ton of USD68
RoE (%) 3.8 5.4 8.8 11.4 (FY20E) and USD66 (FY21E). Maintain Buy.
RoCE (%) 5.6 6.0 7.6 8.9 Key issues to watch out for
Payout (%) 58.1 38.4 22.2 15.8  Volume growth recovery and outlook.
Valuation  Cement pricing outlook and sustainability.
P/E (x) 27.7 17.3 10.0 7.1  Update on profitability of acquired subsidiary of Reliance.
P/BV (x) 0.9 0.9 0.9 0.8
EV/EBITDA .x 8.7 7.7 6.3 5.1
EV/Ton (USD) 67 67 68 66
Consolidated Performance (INR Million)

Y/E March FY18 FY19 FY18 FY19E
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QE
Cement Sales (m ton) 3.28 2.65 3.03 3.41 3.52 3.07 3.21 3.60 12.37 13.39
YoY Change (%) 51.3 27.6 21.9 4.0 7.3 15.7 5.9 5.6 22.8 8.3
Cement Realization 4,856 4,373 4,363 4,554 4,499 4,538 4,553 4,638 4,548 4,558
YoY Change (%) 8.3 16.5 -6.0 -2.3 -7.4 3.8 4.3 1.9 14.3 0.2
QoQ Change (%) 4.2 -9.9 -0.2 4.4 -1.2 0.9 0.3 1.9
Net Sales 14,588 12,355 13,893 16,506 16,545 14,646 15,569 17,460 57,342 64,220
YoY Change (%) 63.3 30.8 29.1 14.8 13.4 18.5 12.1 5.8 31.9 12.0
Total Expenditure 12,184 10,587 12,506 13,999 14,081 12,790 13,498 14,779 49,275 55,148
EBITDA 2,404 1,768 1,387 2,507 2,464 1,856 2,071 2,681 8,066 9,072
Margins (%) 16.5 14.3 10.0 15.2 14.9 12.7 13.3 15.4 14.1 14.1
Depreciation 832 831 823 836 857 870 836 833 3,322 3,395
Interest 937 1,053 958 829 952 935 922 930 3,776 3,739
Other Income 161 119 141 334 232 203 106 362 755 902
Profit before Tax 671 3 -252 1,385 852 252 419 1,281 1,807 2,840
Tax 239 -12 -34 74 49 91 146 227 267 511
Rate (%) 35.6 -421.4 13.4 5.3 5.7 35.9 34.7 17.7 14.8 18.0
Reported PAT 432 15 -218 1,311 803 162 274 1,054 1,540 2,329
EO Income/(Expense) 125 0 0 -208 35 1 0 0 -83 0
Adj. PAT 557 15 -218 1,103 838 163 274 1,054 1,456 2,329
YoY Change (%) -41.0 -97.8 -47.1 2.1 50.5 1,015.8 -225.3 -4.4 -35.6 59.9
E: MOFSL Estimates
3 May 2019 24
March 2019 Results Preview | Consumer
Godrej Consumer
Bloomberg GCPL IN
CMP: INR659 Neutral
 We expect Godrej Consumer’s revenue to rise 4.4% YoY to
M. Cap. (INR b)/(USD b) 673 / 10
INR26.4b.
1,6,12 Rel Perf. (%) -11 / -24 / -29
 Volume growth in soaps is expected to be 2% YoY.
 Gross margin is expected to contract 120bp YoY to 57.8%.
Financial Snapshot (INR b)  We estimate operating margin to contract 70bp YoY to 23.2%.
Y/E March 2018 2019E 2020E 2021E  Thus, we have modeled just 1.4% EBITDA growth and expect
Sales 98.4 105.0 119.5 133.4 adjusted PAT to decline by 5.9% YoY to INR4b.
EBITDA 20.7 22.2 25.5 28.8
 The stock trades at 37.6x/32.8x FY20E/21E EPS of INR17.5/INR20.1.
Adj. PAT 14.4 15.0 17.9 20.5
Neutral.
Adj. EPS (INR) 14.1 14.7 17.5 20.1
EPS Gr. (%) 11.4 4.6 18.8 14.6 Key issues to watch for
BV/Sh.(INR) 61.2 66.9 72.7 81.0  Competitive intensity across categories.
RoE (%) 24.9 23.0 25.1 26.1  Outlook for international business— demand outlook in
RoCE (%) 16.2 16.5 18.1 19.5
Indonesia and margin guidance for LatAm.
Payout (%) 33.2 45.3 57.1 49.8
 Response to new launches in HI segment.
Valuations
P/E (x) 46.8 44.7 37.6 32.8
P/BV (x) 10.8 9.9 9.1 8.1
EV/EBITDA (x) 33.7 31.5 27.2 24.0
Div. Yield (%) 0.7 1.0 1.5 1.5
Quarterly Performance (Consolidated)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QE
Net Sales (including OOI) 21,773 25,066 26,303 25,289 24,760 26,592 27,219 26,398 98,433 104,969
YoY Change (%) 2.9 6.3 9.5 5.8 13.7 6.1 3.5 4.4 6.2 6.6
Gross Profit 11,640 14,097 15,040 14,913 13,814 14,551 15,310 15,263 55,689 58,939
Margin (%) 53.5 56.2 57.2 59.0 55.8 54.7 56.2 57.8 56.6 56.1
EBITDA 3,498 5,427 5,987 6,050 4,491 5,382 6,162 6,133 20,671 22,168
Margins (%) 16.1 21.6 22.8 23.9 18.1 20.2 22.6 23.2 21.0 21.1
YoY Growth (%) -8.7 16.1 15.8 10.9 28.4 -0.8 2.9 1.4 8.0 7.2
Depreciation 374 386 396 401 421 426 427 430 1,557 1,704
Interest 397 402 386 422 477 612 578 545 1,607 2,213
Other Income 237 190 359 290 310 260 227 247 1,076 1,043
PBT 2,960 4,721 5,467 5,435 3,853 4,607 5,309 5,404 18,582 19,294
Tax 634 1,060 1,148 1,204 678 1,015 1,133 1,418 4,047 4,244
Rate (%) 21.4 22.5 21.0 22.2 17.6 22.0 21.3 26.2 21.8 22.0
Adj PAT 2,327 3,664 4,322 4,234 3,177 3,594 4,176 3,982 14,382 15,049
YoY Change (%) -9.2 13.8 23.7 11.3 36.5 -1.9 -3.4 -5.9 10.0 4.6
E: MOFSL Estimate
3 May 2019 25
March 2019 Results Preview | Consumer
Hindustan Unilever
Bloomberg HUVR IN
CMP: INR1,687 Buy
 We expect Hindustan Unilever’s revenue to grow 9.5% YoY, with
M. Cap. (INR b)/(USD b) 3649 / 53
52-Week Range (INR) 1871 / 1322
underlying domestic volume growth of 8% in 4QFY19. Base quarter
1,6,12 Rel Perf. (%) -11 / -4 / 8
volumes were high at 11%.
 PFAD prices are down 21.4% YoY (up 13.5% QoQ).
Financial Snapshot (INR b)  Gross margins are likely to expand 80bp YoY to 53.4%.
Y/E March 2018 2019E 2020E 2021E  We expect operating margin to expand by 100bp YoY to 23.5% in
Sales 345.3 382.4 436.2 498.7 the quarter, leading to EBITDA growth of 14.4% YoY.
EBITDA 72.8 86.6 103.0 122.5  Adjusted PAT is likely to grow 11.9% YoY to INR15.8b.
Adj. PAT 53.0 62.3 74.2 88.5  The stock trades at 49.2x/41.3x FY20E/21E EPS of INR34.3/INR40.9.
Adj. EPS (INR) 24.5 28.8 34.3 40.9 Maintain Buy.
EPS Gr. (%) 24.7 17.6 19.1 19.3
Key issues to watch for
BV/Sh.(INR) 32.7 34.1 33.7 31.5
 Comments on consumer demand environment.
RoE (%) 78.1 86.2 101.1 125.5
 Pace of rural growth.
RoCE (%) 108.6 121.7 144.8 179.7
 Performance of Lever Ayush.
Payout (%) 98.9 99.7 104.7 108.2
 WIMI growth.
Valuations
P/E (x) 68.9 58.6 49.2 41.3
P/BV (x) 51.6 49.4 50.1 53.6
EV/EBITDA (x) 49.7 41.7 34.9 29.3
Div. Yield (%) 1.2 1.4 1.8 2.2
Quarterly performance
Y/E March FY18 FY19
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QE FY18 FY19E
Domestic volume growth (%) 0.0 4.0 11.0 11.0 12.0 10.0 10.0 8.0 6.0 10.0
Net Sales 85,290 83,090 85,900 90,970 94,870 92,340 95,580 99,631 345,250 382,421
YoY Change (%) 4.9 5.9 11.5 10.8 11.2 11.1 11.3 9.5 8.3 10.8
Gross Profit 44,450 43,800 46,850 47,830 51,230 47,990 51,400 53,158 182,930 203,778
Margin % 52.1 52.7 54.5 52.6 54.0 52.0 53.8 53.4 53.0 53.3
EBITDA 18,660 16,820 16,800 20,480 22,510 20,190 20,460 23,424 72,760 86,584
YoY Change (%) 14.1 19.7 23.9 24.0 20.6 20.0 21.8 14.4 20.3 19.0
Margins (%) 21.9 20.2 19.6 22.5 23.7 21.9 21.4 23.5 21.1 22.6
Depreciation 1,140 1,150 1,210 1,280 1,270 1,300 1,330 1,304 4,780 5,204
Interest 60 60 50 40 70 70 70 70 200 280
Other Income 1,130 2,040 1,520 1,000 1,350 3,050 1,060 1,197 5,690 6,657
PBT 18,590 17,650 17,060 20,160 22,520 21,870 20,120 23,247 73,470 87,757
Tax 5,630 5,250 3,590 6,010 6,640 6,270 5,060 7,480 20,480 25,450
Rate (%) 30.3 29.7 21.0 29.8 29.5 28.7 25.1 32.2 27.9 29.0
Adjusted PAT 12,920 12,360 11,980 14,090 15,670 15,220 14,010 15,768 52,990 62,308
YoY Change (%) 14.6 14.2 30.2 26.0 21.3 23.1 16.9 11.9 24.7 17.6
Reported Profit 12,830 12,760 13,260 13,510 15,290 15,250 14,440 15,768 52,370 62,308
E: MOFSL Estimates
3 May 2019 26
March 2019 Results Preview | Sector: Chemicals
Tata Chemicals
Bloomberg TTCH IN
CMP: INR595 Buy
 We expect revenue to grow 12% YoY to INR28,683m in 4QFY19 led
M. Cap. (INR b)/(USD b) 152 / 2
by growth of 14.4% in TCNA (North America), 13.5% growth in
1,6,12 Rel Perf. (%) -3 / -21 / -30
standalone business and 12% growth in TCAHL (Africa). TCEHL
(Europe) is expected to remain subdued at 4.1% growth YoY.
Financial Snapshot (INR Billion)  After multiple on-offs in TCNA in 9MFY19, the geography is
Y/E March 2018 2019E 2020E 2021E expected to resume growth. The EBITDA/MT too is likely to
Sales 102.7 114.3 126.3 141.6 increase to USD45/MT in 4QFY19 from USD37.2/MT on account
EBITDA 21.9 21.2 24.9 28.1 of subsequent operating leverage.
NP 12.3 10.4 11.9 14.3  EBITDA margin is likely to contract 140bp to 18.7% as Rallis and
EPS (INR) 48.2 40.7 46.8 56.0
standalone business offset the margin expansion in the US and
EPS Gr. (%) 39.7 -15.7 15.1 19.6
Africa business. We expect margin expansion of 300bp in the US
BV/Sh. (INR) 435.7 463.8 497.7 538.2
business and 290bp in TCNA. Standalone business and Rallis are
RoE (%) 24.9 9.0 9.7 10.8
expected to witness a margin contraction of 460bp and 140bp,
RoCE (%) 9.4 7.1 7.7 8.5
respectively.
Valuations
 EBITDA is likely to grow 4.4% YoY to INR5,352m. Adj. PAT is
P/E (x) 12.3 14.6 12.7 10.6
P/BV (x) 1.4 1.3 1.2 1.1
expected to decline 16% YoY to INR2,600m in 4QFY19 on account
EV/EBITDA (x) 8.9 9.3 7.8 6.6 of higher tax rate of 23.9% v/s 9.5% in 4QFY18 .
EV/Sales (x) 1.9 1.7 1.5 1.3
Key things to watch for
 Scaling up of the consumer business.
 Revival in the US business after a subdued 9MFY19.
Consolidated - Quarterly Earning Model

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QE
Net Sales 24,517 26,902 25,739 25,551 27,691 29,607 28,319 28,683 102,709 114,300
YoY Change (%) -23.7 -20.4 5.8 1.7 12.9 10.1 10.0 12.3 -0.7 11.3
Total Expenditure 19,740 20,523 20,114 20,426 22,535 23,586 23,606 23,331 80,802 93,058
EBITDA 4,778 6,379 5,626 5,124 5,157 6,020 4,712 5,352 21,907 21,242
Margins (%) 19.5 23.7 21.9 20.1 18.6 20.3 16.6 18.7 21.3 18.6
Depreciation 1,263 1,292 1,286 1,339 1,351 1,417 1,441 1,497 5,180 5,706
Interest 755 751 894 855 887 921 972 967 3,256 3,747
Other Income 187 498 172 738 817 1,233 961 900 1,595 3,911
PBT before EO expense 2,947 4,834 3,618 3,668 3,735 4,916 3,260 3,788 15,066 15,699
Extra-Ord expense 0 0 -596 -48 0 0 275 0 -643 275
PBT 2,947 4,834 4,213 3,715 3,735 4,916 2,985 3,788 15,709 15,424
Tax 759 1,365 -1,874 351 1,258 1,199 716 905 601 4,078
Rate (%) 25.8 28.2 -44.5 9.5 33.7 24.4 24.0 23.9 3.8 26.4
Minority Interest & P/L of Asso. Cos. 461 887 633 221 338 499 74 283 2,202 1,194
Reported PAT 1,726 2,582 5,455 3,143 2,140 3,217 2,195 2,600 12,906 10,151
Adj PAT 1,726 2,582 4,594 3,100 2,140 3,217 2,404 2,600 12,002 10,361
YoY Change (%) -12.8 43.2 132.7 21.0 23.9 24.6 -47.7 -16.1 36.4 -13.7
Margins (%) 7.0 9.6 17.8 12.1 7.7 10.9 8.5 9.1 11.7 9.1
Profits from Discontinued Operations(DO) 53 0 2,136 8,543 -80 0 0 0
E: MOSL Estimates
3 May 2019 27
In conversation
1. BAJAJ AUTO: MARKET CONTINUES TO BE SOFT; Rajiv Bajaj,

MD
 The weakness that is been seen post festive season continues and you will hear
from everyone on how YoY there is degrowth and retails are under pressure;
they are under pressure for example, even in states like Maharashtra which had
the strong festive season of Gudi Padva. So despite the positive seasonal inputs,
the market for some reason continues to be soft.
 Not only in terms of growth has company relatively outperformed the industry
but one will also see that despite all that has been said about company’s
discounting, one will see that the same impact on margins is there for all those
who have announced the result so far.
 Platina brand has grown 77 percent YoY in April and that’s unheard especially at
this time in the month of May company is looking at 100 percent growth for
Platina. Similarly, at the other end of the spectrum, there are people who are
moving up, who are choosing something better and that’s where company is
doing well with the Pulsar that has again clocked double-digit growth in April.
Looking at over 20 percent growth in May as well.
 Inventory level is at 55 days plus and company should be able to get back to 45
days inventory by June-July.
2. BANDHAN BANK: HAS CLOSED YEAR WITH 45% YEAR-ON-

YEAR PROFIT GROWTH; Chandra Shekhar Ghosh, MD & CEO
 Last quarter, profit grew more than 68% on a quarter-on-quarter basis. That has
helped to close the year with Rs 1,950 crore profit, which is 45% year-on-year
profit growth.
 Growth has come not only because of the growth in advance (38%), the NPAs
have been controlled and the on-time repayment rate of customers is 99.30%,
which a year ago was 98.70%. So, nearly a 1% increase in repayment rate.
 In the last quarter, 100% debt was provisioned for IL&FS account.
 (Regarding merger) The RBI, SEBI and CCI approval already has come in. Now
waiting for NCLT approval.
3. ZENSAR TECHNOLOGIES : DEAL WINS IN FY19 STAND AT $750

MILLION; Sandeep Kishore, MD & CEO
 37-38 percent of 17.6 percent revenue growth came on account of acquisitions
and the rest from core organic growth business.
 Based on the pipelines and the deals company has, feel good that company is
executing quite well to the strategy that has been articulated several times
before.
 Margins going forward would likely be in the same range as the fourth quarter.
 The overall cloud business is 15 percent of revenues and out of that, the core
part of the business contributed 9 percent. This business has higher revenues as
it is more based on outcome, tools and platform than effort-led pricing
structure. So the more company wins on cloud infrastructure, the better
margins it will deliver.
3 May 2019 28
 Deal wins for FY19 stood at $750 million. The deal pipeline as of now is about $1
billion. Company’s win rate is about 30 percent. So, reasonably positive about
the pipeline and the conversion.
 https://www.cnbctv18.com/videos/earnings/deal-wins-in-fy19-stand-at-750-
million-says-zensar-technologies-3166661.htm
4. GODREJ PROPERTIES: AIMING TO BECOME LEADER IN

MUMBAI, NCR, BANGALORE, PUNE MARKETS; Pirojsha
Godrej, Executive Chairman
 Performance on the sale side has been very well distributed between new
projects, current projects as well as geographically between top markets of
Mumbai, NCR, Bangalore and Pune.
 Stated strategy as a company is to grow and try to become a leader in each of
these individual markets from a residential real estate perspective.
 Company currently is well capitalized with net debt of about Rs 2100 crore.
 Cost of funding is still under 8 percent, which is remarkably low for the industry.
 Commercial space is also offering wonderful opportunities but a
disproportionate share of company’s focus remains on residential space.
3 May 2019 29
From the think tank
1. INDIA'S EXPORTS: ARE THERE SIGNS OF RECOVERY?

 The revival of private investment and exports is a must to achieve and sustain
over 8% growth. The recent performance of India’s exports—which expanded
11% (year-on-year) in March 2019, taking the figure to $32.5 billion in the month
of March, vis-à-vis 2.4% in the previous month—is good news. Various categories
of intermediate exports—engineering goods, organic and inorganic chemicals,
ready-made garments of all textiles, and drugs and pharmaceuticals—contributed
to this revival. The question, however, is whether this recovery is sustainable or
not? India’s exports have been sluggish and had turned negative, particularly
merchandise exports, between 2013 and 2016, which, along with private
investment, dragged down the country’s growth. Merchandise exports affect
manufacturing and, thus, jobs. Although there have been signs of exports
recovery since the early 2017, the revival has not been robust and consistent. In
fact, during 2018-19, merchandise exports and imports witnessed the same
growth rate of around 9%, totalling $331 billion and $507 billion, respectively,
resulting in 8.9% of merchandise trade deficit. The sector that contributed the
maximum to exports is engineering, with a 25% share, followed by electronics and
chemicals.
2. EMBRACING DIGITAL TECH ACROSS INDUSTRY

 Throughout the world, there is an increasing adoption of exponential
technologies such as artificial intelligence, robotics, blockchain and Internet of
Things (IoT) across industries. The mainstream adoption of exponential
technologies is not only transforming the way businesses are managed, but is
also creating new sources of revenue and business models. Digital-first
organisations that have an integrated approach towards technology-driven
business operations are more likely to focus on new and emerging business
opportunities using tools such as IoT and AI/machine learning (ML) rather than
merely using them to optimise their operations. To put it simply, digital is
becoming the CEO’s agenda rather than CIO’s or CTO’s agenda. The key
challenge for such organisations to harness the real potential of digital tools is to
have an integrated strategy and holistic approach towards their entire value
chain, across customers, employees, partners, and internal business processes.
3 May 2019 30
3. THE WORLD'S NEXT BIG GROWTH CHALLENGE
 The global economy is undergoing very large structural shifts, driven by three
megatrends. One is the digital transformation of the foundations on which
economies are built and run. Another is the growing purchasing power and
economic strength of emerging economies, and China in particular. Lastly, there
are broad-based political-economy trends, which include rising nationalism,
various forms of populism, political and social polarization, and a possible
breakdown of the multilateral framework within which the global economy has
functioned since World War II. The media devote most of their attention to the
economic, social, and regulatory challenges arising from these megatrends, and to
the trade, investment, and technology tensions between China and the United
States. Yet a significant share of the world’s population lives in poor countries, or
in poorer parts of developing countries. Furthermore, the rapid reduction in
global poverty over the past three decades is primarily the result of sustained
growth in developing economies. The future growth prospects of today’s early-
stage (that is, lower income – some growing and others not) developing countries
will be of huge importance in reducing poverty further. Although these countries
face significant headwinds, they could also seize important new growth
opportunities – especially with the help of digital platforms
3 May 2019 31
Click excel icon
for detailed Valuation snapshot
valuation guide
CMP TP % Upside EPS (INR) EPS Gr. YoY (%) P/E (x) P/B (x) ROE (%)
Company Reco (INR) (INR) Downside FY19E FY20E FY21E FY19E FY20E FY21E FY20E FY21E FY20E FY21E FY20E FY21E
Automobiles
Amara Raja Buy 658 861 31 28.6 36.1 43.1 3.8 25.9 19.5 18.3 15.3 2.9 2.5 17.2 17.8
Ashok Ley. Buy 90 113 26 7.0 7.3 6.0 16.9 4.7 -18.0 12.3 15.0 2.8 2.6 24.1 17.7
Bajaj Auto Neutral 3032 3131 3 163.1 179.9 195.7 7.8 10.3 8.8 16.9 15.5 3.7 3.3 23.0 22.5
Bharat Forge Buy 464 604 30 23.9 27.3 27.5 29.7 14.1 0.7 17.0 16.9 3.4 3.0 21.4 18.7
Bosch Neutral 17957 19556 9 532.8 613.7 724.3 13.4 15.2 18.0 29.3 24.8 5.4 4.8 17.4 20.4
CEAT Buy 1055 1313 24 60.2 79.9 93.8 -5.9 32.8 17.4 13.2 11.2 1.4 1.2 10.9 11.6
Eicher Mot. Buy 20544 23657 15 813.7 878 1,008 1.8 7.9 14.8 23.4 20.4 5.4 4.5 25.1 24.1
Endurance Tech. Buy 1160 1351 16 34.2 43.0 50.1 17.7 25.7 16.3 27.0 23.2 5.5 4.7 22.0 21.9
Escorts Neutral 681 760 12 54.5 60.3 63.3 37.8 10.7 5.1 11.3 10.7 2.0 1.7 18.7 16.9
Exide Ind Buy 213 281 32 9.1 10.9 12.2 10.6 20.2 12.2 19.5 17.4 2.7 2.5 14.0 14.2
Hero Moto Neutral 2552 2912 14 169.5 176.8 184.7 -8.5 4.3 4.5 14.4 13.8 3.6 3.3 26.1 24.8
M&M Buy 645 793 23 43.0 41.6 40.7 4.8 -3.3 -2.2 14.6 14.5 2.1 1.9 13.1 11.7
Maruti Suzuki Buy 6668 8047 21 247.7 277.3 334.4 -7.1 12.0 20.6 24.0 19.9 4.0 3.7 16.4 18.1
Motherson Sumi Buy 140 186 33 5.3 6.9 7.8 -2.6 31.8 12.0 20.3 18.1 3.7 3.2 19.4 19.1
Tata Motors Neutral 207 195 -6 -7.2 12.2 15.7 PL LP 28.8 17.0 13.2 1.0 0.9 6.2 7.4
TVS Motor Neutral 479 480 0 14.1 18.1 22.9 1.1 28.6 26.2 26.4 20.9 5.7 4.7 23.5 24.6
Aggregate -24.8 35.0 11.9 19.3 17.3 2.9 2.7 15.1 15.3
Banks - Private
AU Small Finance Buy 639 720 13 13.2 18.2 24.8 28.9 38 36.2 35.1 25.8 4.6 3.9 14.8 16.4
Axis Bank Buy 753 875 16 18.2 40.0 55.7 1,538.1 120 39.1 18.8 13.5 2.5 2.1 14.3 17.0
DCB Bank Buy 214 250 17 10.5 14.0 18.6 32.0 33.2 33.1 15.3 11.5 1.9 1.7 14.1 16.2
Equitas Hold. Buy 129 160 24 6.4 9.5 12.5 591.4 48.6 30.9 13.6 10.4 1.6 1.4 12.4 14.5
Federal Bank Buy 94 115 22 6.2 8.4 10.5 29.6 35.6 25.3 11.3 9.0 1.3 1.1 11.8 13.2
HDFC Bank Buy 2354 2650 13 79.3 94.4 115.6 16.9 19.1 22.4 24.9 20.4 3.8 3.3 16.1 17.2
ICICI Bank Buy 395 470 19 7.1 20.4 28.7 -35.9 187.9 40.4 19.3 13.8 2.2 1.9 11.9 15.1
IndusInd Buy 1563 2050 31 53.8 99.4 127.4 -10.6 84.8 28.2 15.7 12.3 2.9 2.4 20.6 21.4
Kotak Mah. Bk Neutral 1408 1450 3 37.7 44.1 53.6 16.0 16.8 21.5 31.9 26.3 4.1 3.5 13.2 14.3
RBL Bank Buy 664 800 20 20.3 25.2 34.8 34.3 24.1 37.8 26.3 19.1 2.7 2.5 12.4 13.5
South Indian Buy 16 20 26 1.7 2.7 4.0 -10.5 61.1 48.2 5.9 4.0 0.5 0.5 8.6 11.8
Yes Bank Buy 174 280 61 7.5 14.1 19.8 -59.6 88.6 40.9 12.4 8.8 1.3 1.1 11.0 13.5
Aggregate 12.3 57.7 30.6 21.6 16.6 3.0 2.6 13.7 15.6
Banks - PSU
BOB Buy 116 160 38 7.8 14.8 23.9 LP 89.0 61.4 7.8 4.8 0.7 0.6 8.4 12.3
BOI Neutral 89 90 1 -22.0 3.2 11.7 Loss LP 270.9 28.2 7.6 0.7 0.7 2.4 8.7
Canara Neutral 263 278 6 17.0 42.3 49.3 LP 148.5 16.6 6.2 5.3 0.5 0.5 8.2 8.9
Indian Bk Buy 253 325 28 14.4 24.8 41.8 -45.0 72.3 68.3 10.2 6.1 0.7 0.6 7.1 11.0
PNB Neutral 86 90 4 -14.6 5.8 11.6 Loss LP 102 15 7.4 0.7 0.7 4.8 9.1
SBI Buy 307 380 24 6.8 27.1 38.1 LP 299.6 40.4 11.3 8.1 1.1 1.0 10.3 13.3
Union Bk Neutral 85 80 -5 4.5 12.8 24.6 LP 185.7 92.1 6.6 3.4 0.3 0.3 5.5 9.9
Aggregate LP 17,270 54 11 6.9 0.8 0.8 7.9 11.0
NBFCs
Aditya Birla Cap Buy 100 145 45 3.5 5.5 6.3 -6.6 56.6 15.5 18.2 15.7 2.0 1.8 12.4 12.5
Bajaj Fin. Neutral 3129 2760 -12 67.5 86.2 109.2 55.5 27.7 26.8 36.3 28.6 7.7 6.2 23.5 24.1
Cholaman.Inv.&F Under
1337 - 76.8 88.6 101.0 23.2 15.4 14.1 15.1 13.2 2.8 2.4 20.5 19.5
n Review
HDFC Buy 2017 2365 17 42.9 50.7 57.9 1.4 18.2 14.3 39.8 34.8 4.3 3.8 14.9 15.3
HDFC Life Insur. Buy 417 475 14 6.3 7.3 9.0 14.4 15.8 22.6 56.9 46.4 3.8 3.2 20.2 20.0
ICICI Pru Life Buy 373 450 21 8.0 7.8 9.3 -29.5 -1.3 18.2 47.6 40.2 2.1 1.8 15.9 15.7
Under
Indiabulls Hsg 679 - 95.9 101.9 119.0 5.0 6.3 16.8 6.7 5.7 1.5 1.4 24.3 25.3
Review
Indostar Capital Buy 391 525 34 24.7 39.2 54.4 5.4 58.4 39.0 10.0 7.2 1.0 0.9 11.0 13.4
L&T Fin Holdings Buy 131 170 30 11.2 13.1 15.4 65.2 17.0 17.6 10.0 8.5 1.6 1.4 17.7 17.8
LIC Hsg Fin Buy 489 640 31 47.7 56.1 65.2 21.1 17.7 16.2 8.7 7.5 1.3 1.2 16.2 16.4
MAS Financial Buy 587 705 20 28.4 32.6 39.1 47.9 15.1 19.9 18.0 15.0 3.3 2.8 19.6 20.3
3 May 2019 32
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valuation guide
M&M Fin. Buy 395 540 37 25.3 29.5 34.0 44.7 16.3 15.6 13.4 11.6 2.1 1.8 16.3 16.8
Muthoot Fin Neutral 590 560 -5 49.1 55.2 63.2 14.1 12.6 14.4 10.7 9.3 2.2 1.9 22.3 21.9
PNB Housing Buy 684 1100 61 65.0 75.3 85.8 31.1 15.8 14.0 9.1 8.0 1.4 1.2 16.3 16.3
Repco Home Buy 418 550 32 38.4 43.3 49.9 16.6 12.8 15.2 9.6 8.4 1.5 1.3 16.5 16.3
Shriram City
Buy 1625 2100 29 149.9 165.5 188.6 48.7 10.4 14.0 9.8 8.6 1.5 1.3 15.9 15.7
Union
Shriram Trans. Buy 1095 1450 32 107.7 130.1 149.8 55.9 20.8 15.1 8.4 7.3 1.4 1.2 17.4 17.2
Aggregate 19.8 17.7 18.0 22.5 19.1 3.5 3.0 15.6 15.9
Capital Goods
ABB Sell 1474 1175 -20 12.0 14.9 17.2 12.7 24.0 15.8 99.1 85.6 7.5 7.2 7.6 8.4
Bharat Elec. Buy 88 115 30 7.1 7.4 7.7 24.0 4.1 3.7 11.9 11.5 2.2 2.0 18.3 17.1
BHEL Sell 70 60 -14 3.2 3.8 4.5 45.5 18.6 17.9 18.4 15.6 0.8 0.8 4.2 4.9
Blue Star Neutral 682 755 11 19.5 24.5 30.7 34.3 25.6 25.3 29.5 21.9 6.5 5.7 20.4 21.4
CG Cons. Elec. Buy 235 270 15 6.0 7.7 9.3 16.1 27.6 21.6 30.8 25.3 12.0 9.7 43.4 42.4
Cummins Buy 707 950 34 27.4 31.2 34.8 16.4 13.8 11.6 22.7 20.3 4.2 3.9 19.2 19.8
Engineers India Buy 112 155 39 6.3 7.4 8.7 0.7 17.2 17.6 15.1 12.9 2.8 2.5 17.9 19.1
GE T&D Neutral 251 300 19 9.9 11.1 11.8 31.9 12.1 6.7 22.7 21.2 4.2 3.8 19.8 18.7
Havells Buy 769 871 13 13.8 16.7 20.3 23.0 21.2 21.1 46.0 38.0 9.7 8.3 21.1 21.9
K E C Intl Neutral 292 260 -11 19.7 24.7 27.0 10.2 25.2 9.5 11.8 10.8 2.5 2.1 21.5 19.6
L&T Buy 1359 1710 26 62.4 72.4 89.6 20.6 16.1 23.7 18.8 15.2 2.4 2.2 14.4 15.0
Siemens Neutral 1150 1138 -1 25.1 30.9 32.5 27.1 23.1 5.2 37.2 35.4 4.6 4.2 12.7 12.4
Solar Ind Neutral 1080 1125 4 28.7 37.5 49.7 17.9 30.6 32.5 28.8 21.7 6.3 5.1 23.8 25.8
Thermax Buy 986 1290 31 25.4 36.3 43.0 24.0 42.8 18.2 27.1 23.0 3.4 3.1 13.3 14.1
Va Tech Wab. Neutral 276 300 9 26.9 38.2 47.9 11.6 42.3 25.2 7.2 5.8 1.1 0.9 15.9 17.4
Voltas Neutral 601 605 1 16.5 18.9 22.3 -4.8 14.5 18.0 31.8 27.0 4.2 3.8 13.8 14.7
Aggregate 20.0 17.3 18.9 22.8 19.2 2.8 2.6 12.4 13.4
Cement
Ambuja Cem. Neutral 221 211 -5 6.3 6.8 7.8 2.0 8.7 14.6 32.5 28.3 2.0 2.0 6.3 7.1
ACC Buy 1617 1913 18 57.3 66.3 85.4 22.1 15.8 28.7 24.4 18.9 2.7 2.4 11.3 13.3
Birla Corp. Buy 504 634 26 30.2 52.4 73.4 59.9 73.4 39.9 9.6 6.9 0.8 0.7 8.8 11.4
Grasim Inds. Neutral 899 836 -7 66.2 85.0 98.3 39.8 28.5 15.7 10.6 9.1 1.2 1.2 6.1 6.0
India Cem Neutral 106 103 -3 2.8 5.4 7.8 -14.1 91.5 44.7 19.8 13.7 0.6 0.6 3.1 4.4
J K Cements Buy 904 993 10 35.8 43.4 52.7 -12.6 21.1 21.5 20.8 17.2 2.8 2.5 14.4 15.4
JK Lakshmi Ce Buy 366 407 11 6.1 12.0 20.2 -17.5 96.3 68.3 30.5 18.1 2.6 2.3 9.0 13.6
Ramco Cem Buy 777 853 10 21.4 28.5 36.8 -10.6 33.1 29.0 27.3 21.1 3.6 3.1 14.1 15.9
Orient Cem Buy 108 119 10 2.3 4.4 8.1 7.5 89.8 84 24.5 13.3 2.0 1.7 8.3 13.7
Prism Johnson Buy 92 110 20 2.7 3.4 3.9 95.7 25.4 12.9 26.7 23.7 3.6 3.2 14.3 14.3
Sanghi Inds. Buy 61 76 25 1.2 2.3 2.4 -67.7 89.5 5.9 26.8 25.3 0.9 0.8 3.5 3.5
Shree Cem Buy 19818 21198 7 371.5 459.7 600.3 -3.7 23.7 30.6 43.1 33.0 6.2 5.3 15.5 17.4
Ultratech Buy 4623 5190 12 89.4 113.0 153.6 4.3 26.4 35.9 40.9 30.1 3.7 3.3 10.1 11.5
Aggregate 14.6 27.8 25.1 23.8 19.0 2.5 2.2 10.3 11.7
Consumer
Asian Paints Neutral 1438 1530 6 24.1 28.3 34.0 13.9 17.7 19.9 50.7 42.3 14.4 13.7 29.0 33.1
Britannia Buy 2786 3350 20 48.1 59.2 69.8 15.0 23.1 17.9 47.0 39.9 14.8 14.4 32.5 36.7
Colgate Buy 1193 1555 30 27.9 32.1 37.0 10.8 15.1 15.2 37.2 32.3 20.1 21.4 54.1 64.2
Dabur Neutral 382 415 9 8.5 9.2 10.4 9.4 8.2 13.0 41.6 36.9 10.7 9.9 27.2 27.9
Emami Buy 385 540 40 12.5 14.3 16.4 2.7 14.7 14.5 26.9 23.5 7.8 7.7 29.4 32.9
Future Consumer Buy 43 58 36 -0.1 0.7 1.6 Loss LP 136.0 62.0 26.3 6.4 5.2 11.0 21.9
Godrej Cons. Neutral 653 740 13 14.7 17.5 20.1 4.6 18.8 14.6 37.3 32.5 9.0 8.1 25.1 26.1
GSK Cons. Neutral 7151 7730 8 206.1 223.9 252.9 23.8 8.6 13.0 31.9 28.3 7.5 6.7 24.7 25.0
HUL Buy 1728 2125 23 28.8 34.3 40.9 17.6 19.1 19.3 50.4 42.3 51.3 54.9 101.1 125.5
ITC Neutral 305 310 2 9.9 11.2 12.4 12.3 12.3 10.8 27.3 24.6 6.9 6.5 26.2 27.3
Jyothy Lab Neutral 180 195 8 5.2 6.3 7.6 4.9 21.4 20.5 28.7 23.8 5.1 4.7 18.3 20.6
Marico Buy 355 460 30 7.3 8.8 10.7 14.6 19.8 21.2 40.3 33.3 14.5 14.1 37.4 42.9
Nestle Neutral 10604 11820 11 178.6 197.3 232.0 27.5 10.5 17.6 53.8 45.7 27.4 28.9 51.4 61.6
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valuation guide
Page Inds Neutral 22550 27515 22 378.3 472.0 573.3 21.6 24.7 21.5 47.8 39.3 25.7 22.1 53.8 56.2
Parag Milk Foods Buy 238 305 28 13.9 16.6 20.5 34.2 18.9 23.7 14.4 11.6 2.1 1.9 15.9 17.2
Under
Pidilite Ind. 1229 - 18.2 22.4 26.6 -4.1 23.2 19.0 54.9 46.1 14.4 13.0 27.3 29.5
Review
P&G Hygiene Neutral 10253 10555 3 134.4 167.0 209.9 16.6 24.3 25.7 61.4 48.9 30.0 25.2 53.0 56.1
United Brew Neutral 1412 1535 9 23.0 26.8 32.0 54.0 16.6 19.5 52.7 44.1 9.7 8.2 20.1 20.1
United Spirits Buy 545 690 27 10.0 13.6 18.4 47.7 36.8 34.8 40.0 29.7 10.2 7.6 25.6 25.6
Aggregate 14.7 16.5 16.4 40.0 34.3 12.6 11.8 31.6 34.5
Healthcare
Alembic Phar Neutral 546 615 13 29.3 29.6 34.8 33.8 1.2 17.5 18.4 15.7 3.4 2.9 19.3 19.5
Alkem Lab Buy 1717 2170 26 70.9 91.7 109.4 20.3 29.4 19.2 18.7 15.7 3.2 2.8 18.4 19.0
Ajanta Pharma Buy 1075 1225 14 44.4 48.2 55.6 -16.1 8.4 15.4 22.3 19.4 3.6 3.1 17.6 17.5
Aurobindo Buy 798 940 18 42.8 59.1 64.2 0.2 38.1 8.7 13.5 12.4 2.7 2.2 22.2 19.7
Biocon Neutral 561 670 19 12.4 19.9 23.7 99.6 60.7 19.2 28.2 23.6 4.8 4.2 18.3 19.1
Cadila Buy 315 420 33 17.5 17.7 18.8 -0.4 1.5 5.8 17.8 16.8 2.9 2.5 17.0 16.0
Cipla Neutral 565 488 -14 17.6 21.2 25.3 -13.6 20.8 19.1 26.6 22.3 2.7 2.4 10.1 10.9
Divis Lab Neutral 1714 1570 -8 56.0 61.3 70.4 69.5 9.4 14.8 28.0 24.4 5.4 4.6 21.1 20.5
Dr Reddy’s Neutral 2921 2775 -5 111.8 129.2 141.5 72.8 15.6 9.5 22.6 20.6 3.1 2.7 14.4 14.0
Glenmark Neutral 627 560 -11 28.2 34.7 38.3 -0.9 22.8 10.6 18.1 16.3 2.6 2.2 14.1 13.5
Granules Buy 111 140 26 9.1 10.4 12.3 63.3 14.2 18.4 10.7 9.1 1.7 1.5 17.0 17.9
GSK Pharma Neutral 1287 1309 2 23.6 28.7 33.3 20.3 21.5 16.1 44.8 38.6 9.6 8.8 21.5 22.7
IPCA Labs Buy 974 1145 18 36.8 45.3 54.4 94.1 23.1 20.1 21.5 17.9 3.4 2.9 17.0 17.7
Jubilant Life Buy 655 1050 60 60.4 69.5 73.7 32.5 15.1 6.1 9.4 8.9 1.7 1.5 19.9 17.8
Laurus Labs Buy 403 470 16 10.4 18.1 26.3 -34.4 74.0 45.3 22.3 15.3 2.4 2.1 11.3 14.5
Lupin Buy 875 1000 14 26.2 38.2 47.9 -18.2 46.0 25.4 22.9 18.3 2.6 2.4 11.9 13.6
Sanofi India Buy 5597 7000 25 165.5 197.3 218.6 16.7 19.2 10.8 28.4 25.6 5.3 4.7 18.5 18.3
Shilpa Medicare Buy 379 465 23 13.9 22.3 24.2 8.2 60.8 8.3 17.0 15.7 2.2 2.0 13.8 13.2
Strides Pharma Buy 482 590 22 9.8 25.1 34.0 -13.3 157.0 35.5 19.2 14.2 1.6 1.5 8.6 10.8
Sun Pharma Buy 451 546 21 16.2 20.4 23.8 20.7 25.7 16.4 22.1 19.0 2.5 2.2 11.7 12.3
Torrent Pharma Neutral 1766 1660 -6 48.7 68.5 83.4 -9.3 40.6 21.7 25.8 21.2 4.8 4.2 19.9 21.2
Aggregate 14.5 25.0 14.9 21.5 18.7 3.1 2.7 14.4 14.6
Infrastructure
Ashoka Buildcon Buy 121 175 45 10.5 12.4 15.1 24.7 17.6 21.7 9.8 8.0 1.3 1.2 14.6 15.5
IRB Infra Neutral 122 155 27 27.1 23.5 14.8 13.6 -13.4 -37.1 5.2 8.3 0.6 0.5 11.5 6.7
KNR
Buy 237 295 24 14.4 14.4 15.5 -25.4 -0.4 8.1 16.5 15.3 2.2 1.9 14.0 13.2
Constructions
Sadbhav
Buy 235 285 21 13.5 13.4 14.0 5.2 -1.1 4.6 17.6 16.8 1.8 1.6 10.5 10.0
Engineering
Aggregate 9.4 10.8 1.1 1.0 11.5 9.2
Logistics
Allcargo Logistics Buy 106 142 34 8.7 10.1 11.4 19.3 16.2 12.9 10.6 9.4 1.1 1.0 10.7 10.8
Concor Buy 514 564 10 19.9 22.7 26.2 14.9 13.9 15.3 22.6 19.6 2.8 2.7 12.9 14.0
Aggregate 15.6 14.3 14.9 20.0 17.4 2.4 2.2 12.1 12.9
Media
D B Corp Buy 185 215 16 15.7 22.3 24.6 -10.6 41.4 10.4 8.3 7.5 1.6 1.4 19.9 18.8
Ent.Network Buy 497 720 45 11.0 19.0 33.8 62.0 72.9 77.6 26.1 14.7 2.3 2.0 9.3 14.7
Jagran Prak. Buy 112 140 25 9.1 13.8 15.5 -5.7 51.5 12.9 8.2 7.2 1.5 1.3 19.7 19.2
Music Broadcast Buy 59 76 29 2.3 3.0 3.9 25.5 30.6 31.2 19.8 15.1 2.4 2.0 12.7 14.5
PVR Buy 1802 1900 5 34.5 35.9 40.0 29.2 3.9 11.7 50.3 45.0 5.4 4.9 12.2 11.4
Sun TV Buy 560 740 32 37.5 41.4 46.5 35.2 10.4 12.2 13.5 12.1 3.9 3.6 30.4 31.1
Zee Ent. Neutral 418 450 8 16.3 18.9 22.7 35.2 15.8 20.5 22.2 18.4 3.9 3.3 19.1 19.6
Aggregate 18.3 20.6 5.7 16.8 15.9 3.0 3.1 18.0 19.9
Metals
Hindalco Buy 205 281 37 25.7 26.3 30.4 36.3 2.2 15.7 7.8 6.7 1.0 0.9 13.2 13.4
Hind. Zinc Neutral 272 239 -12 18.8 21.6 21.9 -10.9 14.9 1.4 12.6 12.4 2.9 2.6 25.1 22.3
3 May 2019 34
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valuation guide
JSPL Buy 181 287 59 2.3 3.8 24.7 LP 63.1 558.2 48.0 7.3 0.6 0.5 1.2 7.4
JSW Steel Buy 307 336 9 30.6 20.7 29.3 30.7 -32.2 41.3 14.8 10.5 2.1 1.8 15.1 18.7
Nalco Buy 52 75 45 8.8 5.7 6.9 71.9 -34.9 20.6 9.0 7.5 1.0 1.0 10.8 13.3
NMDC Buy 101 132 31 15.3 10.7 12.9 16.6 -29.7 20.1 9.4 7.8 1.1 1.1 12.5 14.2
SAIL Neutral 56 52 -7 6.3 6.1 9.7 2,330.1 -3 60.5 9.3 5.8 0.6 0.5 6.2 9.3
Rain Industries Buy 118 123 4 20.4 13.7 20.5 -14.0 -32.8 49.8 8.6 5.8 0.8 0.8 9.9 13.8
Vedanta Sell 168 122 -28 13.2 17.4 18.1 -35.3 32.4 3.6 9.6 9.3 1.0 1.0 10.7 10.6
Tata Steel Neutral 555 533 -4 88.6 72.1 68.9 27.3 -18.6 -4.4 7.7 8.1 1.2 1.1 14.5 14.5
Aggregate 16.0 -6.7 18.0 10.5 8.9 1.2 1.1 11.6 12.5
Oil & Gas
Aegis Logistics Buy 195 276 42 6.9 9.9 11.3 16.3 43.0 14.7 19.8 17.3 4.0 3.4 21.9 21.4
BPCL Buy 378 444 18 39.3 47.8 51.8 -21.0 21.4 8.5 7.9 7.3 1.6 1.4 21.7 21.0
GAIL Neutral 347 340 -2 29.5 28.4 30.0 44.6 -3.8 5.7 12.3 11.6 1.6 1.5 13.7 13.3
Gujarat Gas Neutral 161 153 -5 5.9 6.8 7.6 38.9 15.4 12.4 23.7 21.1 4.4 3.8 20.1 19.4
Gujarat St. Pet. Buy 197 212 7 15.4 14.9 16.0 30.0 -3.5 7.8 13.3 12.3 1.7 1.5 13.6 13.0
HPCL Neutral 282 272 -3 37.6 50.8 51.4 -20.6 35.1 1.1 5.5 5.5 1.3 1.1 25.0 22.1
IOC Buy 158 203 28 15.5 18.2 19.1 -35.2 17.9 4.6 8.7 8.3 1.2 1.1 13.8 13.6
IGL Buy 309 368 19 11.2 13.0 14.6 18.2 16.5 12.0 23.8 21.2 4.5 3.9 20.4 19.7
Mahanagar Gas Neutral 957 1095 14 57.7 58.3 64.4 19.2 1.1 10.5 16.4 14.9 3.4 3.0 22.3 21.8
MRPL Neutral 71 76 7 1.7 10.6 10.8 -86.9 535.5 1.5 6.7 6.6 1.0 0.9 15.6 14.1
Oil India Buy 182 237 30 33.5 29.8 30.6 41.9 -11.1 2.6 6.1 6.0 0.6 0.6 10.9 10.6
ONGC Buy 169 193 14 26.7 28.4 28.5 32.1 6.5 0.4 6.0 5.9 0.9 0.8 15.5 14.3
PLNG Buy 239 315 32 15.2 17.9 21.1 9.4 17.9 18.0 13.4 11.3 3.0 2.7 23.9 25.4
Reliance Ind. Neutral 1405 1431 2 67.2 70.7 80.3 10.4 5.2 13.6 19.9 17.5 2.0 1.8 10.3 10.7
Aggregate 2.2 10.3 6.8 12.1 11.3 1.6 1.4 13.0 12.7
Retail
Avenue
Sell 1265 1300 3 15.3 19.7 26.1 18.6 28.5 32.7 64.2 48.4 11.5 9.3 19.7 21.3
Supermarts
Aditya Birla
Buy 209 260 24 2.6 4.0 5.8 70.3 54.7 44.0 52.0 36.1 10.1 7.9 21.4 24.5
Fashion
Future Lifestyle Buy 487 585 20 8.6 10.8 14.5 30.3 25.6 34.3 44.5 33.1 4.6 4.1 10.7 13.0
Future Retail Buy 421 580 38 13.7 15.4 17.5 12.2 12.4 13.5 27.2 24.0 4.6 3.9 18.6 17.6
Jubilant Food. Neutral 1347 1380 2 24.8 28.1 32.9 67.1 13.1 17.1 47.9 40.9 12.8 11.0 26.7 27.0
Shoppers Stop Neutral 467 520 11 7.8 13.2 15.9 -36.1 69.2 20.5 35.3 29.4 3.8 3.4 11.4 12.1
Spencers Retail Buy 140 200 43 0.0 0.4 0.9 LP 879.3 136.3 360.5 152.6 7.4 7.1 2.1 4.7
Titan Company Buy 1138 1300 14 16.1 20.5 25.5 27.6 27.1 24.3 55.5 44.7 17.1 14.8 33.0 35.5
Trent Buy 366 440 20 2.9 5.8 7.7 11.6 99.2 32.3 63.0 47.6 6.6 5.8 11.1 13.0
V-Mart Retail Neutral 2785 2880 3 41.6 49.0 60.2 -3.0 17.7 22.9 56.8 46.2 9.9 8.1 19.0 19.3
Aggregate 24.9 27.0 26.2 53.4 42.3 10.4 8.8 19.5 20.7
Technology
Cyient Buy 594 730 23 43.4 48.7 52.4 13.4 12.3 7.6 12.2 11.3 2.3 2.1 18.9 18.4
HCL Tech. Neutral 1160 1200 3 73.7 81.1 91.7 17.8 10.1 13.0 14.3 12.6 3.4 3.0 24.9 25.2
Hexaware Neutral 344 360 5 19.3 21.2 24.1 16.5 9.7 13.7 16.2 14.3 3.8 3.4 25.1 25.3
Infosys Buy 730 860 18 37.5 38.5 44.2 15.9 2.7 14.6 18.9 16.5 5.0 4.6 25.8 28.8
L & T Infotech Neutral 1722 1950 13 90.1 93.1 102.1 35.8 3.3 9.7 18.5 16.8 4.8 3.9 29.6 26.2
Mindtree Neutral 982 1000 2 44.8 52.7 62.8 53.1 17.6 19.0 18.6 15.6 4.2 3.6 24.3 25.0
Mphasis Neutral 982 1050 7 56.9 60.8 70.4 29.3 6.7 15.8 16.2 14.0 4.5 3.7 31.0 30.9
NIIT Tech Neutral 1283 1400 9 66.2 74.5 89.9 45.4 12.6 20.7 17.2 14.3 3.6 3.1 22.2 23.1
Persistent Sys Buy 628 800 27 44.0 53.3 60.2 8.9 21.2 13.0 11.8 10.4 2.0 1.7 16.9 17.6
Under
Tata Elxsi 896 - 46.6 48.6 57.5 20.2 4.4 18.3 18.4 15.6 4.0 3.0 26.1 22.0
Review
TCS Neutral 2214 2010 -9 83.5 89.8 100.6 26.4 7.6 12.0 24.7 22.0 9.4 8.8 39.0 41.4
Tech Mah Buy 835 940 13 49.1 54.1 60.7 14.8 10.3 12.3 15.4 13.7 3.5 3.1 23.5 24.3
Wipro Neutral 294 280 -5 14.8 17.1 18.4 10.1 15.6 7.5 17.2 16.0 3.4 3.2 18.4 20.6
Zensar Tech Buy 246 285 16 13.8 16.2 19.0 29.0 17.4 17.3 15.2 12.9 2.5 2.2 17.6 18.0
3 May 2019 35
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valuation guide
Aggregate 13.8 6.7 12.3 21.3 19.0 5.9 5.4 27.8 28.5
Telecom
Bharti Airtel Buy 325 410 26 -7.6 -5.5 -2.8 PL Loss Loss NM NM 2.3 2.3 -3.8 -2.0
Bharti Infratel Neutral 271 290 7 13.6 13.1 12.6 -0.3 -3.4 -4.1 20.6 21.5 3.6 3.9 17.2 17.5
Vodafone Idea Buy 16 20 23 -18.6 -18.8 -16.7 Loss Loss Loss NM NM 0.3 0.5 -31.5 -39.8
Tata Comm Buy 569 700 23 1.3 11.2 20.3 15.9 732.3 81.6 50.8 27.9 16.1 10.2 37.6 44.7
Aggregate Loss Loss Loss -13 -16.2 1.8 2.1 -13.7 -12.8
Utiltites
Coal India Buy 252 240 -5 27.4 29.0 29.9 43.0 6.0 2.8 8.7 8.4 7.0 6.4 80.4 76.3
Under
CESC 692 - 75.4 80.0 90.6 21.5 6.0 13.3 8.7 7.6 0.9 0.9 11.2 11.7
Review
JSW Energy Neutral 71 77 9 3.8 4.7 5.6 24.5 23.9 20.8 15.1 12.5 1.0 0.9 6.7 7.7
NHPC Neutral 23 25 8 2.3 2.4 2.4 -7.0 6.9 0.3 9.5 9.5 0.8 0.7 8.0 7.8
NTPC Buy 133 158 18 10.9 13.1 15.0 22.9 19.7 14.5 10.2 8.9 1.1 1.1 11.4 12.2
Power Grid Buy 190 232 22 18.3 20.8 22.6 10.4 13.9 8.8 9.1 8.4 1.5 1.3 17.1 16.8
Torrent Power Buy 257 315 22 22.0 23.1 27.6 12.1 5.1 19.5 11.1 9.3 1.3 1.2 12.5 13.5
Tata Power Neutral 67 68 2 2.1 5.3 5.6 -60.7 152.4 5.7 12.6 12.0 1.0 1.0 8.2 8.2
Aggregate 24.1 11.7 7.9 9.4 8.7 1.7 1.5 17.8 17.8
Others
Brigade Enterpr. Buy 224 316 41 16.5 16.1 14.2 53.1 -2.9 -11.4 13.9 15.7 1.2 1.1 8.5 7.1
BSE Buy 630 750 19 34.6 40.0 47.5 -20.3 15.6 18.6 15.7 13.3 0.9 0.9 5.6 6.6
Castrol India Buy 150 190 26 7.2 7.6 7.7 2.4 6.4 0.7 19.7 19.6 11.5 10.5 61.4 56.2
Coromandel Intl Buy 430 542 26 25.2 28.1 31.9 6.5 11.5 13.5 15.3 13.5 3.2 2.7 22.5 21.8
Delta Corp Buy 240 329 37 7.2 9.2 11.0 23.8 27.9 19.6 26.2 21.9 3.0 2.6 12.1 12.8
Indian Hotels Buy 153 186 22 2.4 3.2 4.4 257.4 34.3 37.8 48.3 35.0 3.9 3.6 8.4 10.7
Interglobe Neutral 1538 1444 -6 0.1 67.4 103.1 -99.7 45,376 53 23 14.9 7.9 7.2 35.5 50.6
Info Edge Neutral 1961 1800 -8 24.9 33.9 41.9 67.2 36.4 23.5 57.8 46.8 9.1 7.8 16.9 18.1
Godrej Agrovet Buy 519 623 20 12.6 16.1 19.7 11.8 27.4 22.4 32.2 26.3 5.7 5.0 18.7 20.1
Kaveri Seed Buy 453 582 28 32.9 36.9 38.8 2.7 12.2 5.3 12.3 11.7 2.5 2.3 21.2 20.3
Lemon Tree HotelBuy 75 90 21 0.5 1.0 1.9 149.7 115.2 94.2 76.3 39.3 6.3 5.4 8.6 14.8
MCX Buy 855 950 11 28.4 29.7 37.9 34.1 4.4 27.6 28.8 22.6 3.1 2.9 11.1 13.3
Navneet
Buy 110 159 44 8.3 9.8 11.4 53.0 17.7 15.6 11.2 9.7 2.8 2.5 26.7 27.0
Education
Oberoi Realty Buy 515 628 22 22.2 34.5 33.3 75.9 55.6 -3.7 14.9 15.5 2.1 1.9 14.8 12.7
Phoenix Mills Buy 606 805 33 16.9 21.8 26.7 6.5 29.3 22.5 27.8 22.7 2.5 2.3 9.4 10.5
Quess Corp Neutral 693 730 5 15.9 31.7 41.8 -27.3 99.9 31.8 21.8 16.6 2.5 2.1 15.8 17.6
Under
PI Inds. 1031 - 29.5 36.0 43.3 10.8 21.8 20.3 28.7 23.8 5.4 4.6 20.5 20.9
Review
Piramal Enterp. Buy 2376 2974 25 73.7 124.6 151.3 -5.2 68.9 21.5 19.1 15.7 1.6 1.5 8.9 10.1
Under
SRF 2587 - 104.7 134.4 176.5 34.3 28.4 31.3 19.3 14.7 3.2 2.7 18.0 20.1
Review
S H Kelkar Buy 148 207 40 6.4 7.6 9.4 -10.3 19.5 24.1 19.5 15.7 2.1 1.9 11.4 13.0
Tata Chemicals Buy 576 787 37 40.7 46.8 56.0 -15.7 15.1 19.6 12.3 10.3 1.2 1.1 9.7 10.8
Team Lease Serv. Buy 2995 3500 17 59.1 86.1 122.6 37.4 45.6 42.4 34.8 24.4 7.3 5.6 23.4 26.0
Trident Buy 66 93 41 8.5 9.3 10.3 60.6 9.7 10.5 7.1 6.4 0.9 0.9 13.9 14.0
UPL Buy 964 1062 10 46.0 48.0 75.8 5.1 4.3 58.1 20.1 12.7 3.8 3.2 20.6 27.3
3 May 2019 36
MOSL Universe stock performance
Company 1 Day (%) 1M (%) 12M (%) Company 1 Day (%) 1M (%) 12M (%)
Automobiles BHEL -1.6 -6.5 -20.4
Amara Raja Batt. -0.4 -8.7 -25.6 Blue Star -0.2 -3.4 -14.7
Ashok Leyland 3.4 0.4 -44.5 CG Cons. Elec. -0.5 5.9 0.2
Bajaj Auto 1.3 6.2 2.3 Cummins -3.0 -5.1 -4.6
Bharat Forge -1.5 -9.7 -39.5 Engineers India -0.4 -6.6 -27.8
Bosch -0.1 -0.2 -7.7 GE T&D -1.6 -13.3 -34.2
CEAT -0.3 -6.5 -33.9 Havells -0.7 0.6 41.5
Eicher Motors 1.1 -0.2 -32.6 K E C Intl 2.4 -3.5 -30.3
Endurance Tech. -0.9 -1.0 -7.9 L&T 0.8 -3.6 -3.0
Escorts -8.0 -11.9 -30.9 Siemens -1.8 1.8 2.0
Exide Inds. -0.8 -1.3 -14.5 Solar Ind 1.2 4.0 1.5
Hero Motocorp 1.6 -0.7 -30.3 Thermax 1.5 4.8 -11.9
M&M -0.1 -3.4 -25.3 Va Tech Wab. -3.1 -14.4 -44.9
Maruti Suzuki 0.1 -3.1 -23.8 Voltas -0.4 -3.6 -4.6
Motherson Sumi -4.1 -9.4 -40.0 Cement
Tata Motors -3.3 2.1 -38.3 Ambuja Cem. 0.2 -3.8 -10.0
TVS Motor Co. -2.4 -1.3 -24.8 ACC -0.8 -0.2 3.6
Banks - Private Birla Corp. 0.1 -3.6 -33.4
AU Small Fin. Bank -1.0 5.0 -9.9 Grasim Inds. -0.6 6.3 -17.9
Axis Bank -1.9 -1.9 43.8 India Cem -0.7 -3.9 -25.5
DCB Bank 0.8 5.2 10.6 J K Cements -0.6 4.6 -9.2
Equitas Holdings -1.0 -6.7 -21.5 JK Lakshmi Ce -1.6 2.2 -11.1
Federal Bank 1.7 -3.5 -4.8 Ramco Cem 0.4 4.8 -5.7
HDFC Bank 1.7 2.5 19.5 Orient Cem 0.9 32.2 -26.0
ICICI Bank -3.2 -0.7 42.4 Prism Johnson -2.9 -4.1 -23.8
IndusInd Bank -2.8 -12.0 -16.3 Sanghi Inds. 0.2 -5.0 -45.2
Kotak Mah. Bank 1.5 5.1 12.0 Shree Cem 0.4 7.1 19.4
RBL Bank -2.1 -2.0 28.2 Ultratech 0.1 15.0 15.0
South Ind.Bank 2.3 -6.7 -38.8 Consumer
Yes Bank 3.5 -38.0 -50.9 Asian Paints -1.7 -5.1 17.7
Banks - PSU Britannia -3.7 -6.9 2.7
BOB -0.4 -13.0 -19.5 Colgate -1.2 -4.3 5.7
BOI 1.0 -15.5 -12.1 Dabur -3.9 -5.0 3.0
Canara 0.9 -11.1 2.3 Emami -0.4 -6.2 -30.5
Indian Bk 0.3 -10.1 -17.6 Future Consumer -0.2 -4.7 -26.1
PNB 1.7 -12.4 -7.1 Godrej Cons. 0.2 -0.9 -12.3
SBI -0.9 -6.4 27.8 GSK Cons. -1.5 1.3 17.6
Union Bk 1.5 -14.6 -8.2 HUL -1.5 2.5 17.4
NBFCs ITC 1.0 2.5 6.1
Aditya Birla Cap 2.0 -3.2 -37.4 Jyothy Lab 0.3 -1.6 -1.5
Bajaj Fin. 1.1 2.6 64.1 Marico -0.9 2.7 12.0
Cholaman.Inv.&Fn -3.8 -9.8 -21.9 Nestle -2.7 -1.5 15.0
HDFC 1.1 1.2 5.6 Page Inds -1.7 -10.6 -4.7
HDFC Life Insur. 3.2 9.8 -18.1 Parag Milk -1.1 -8.7 -22.2
Indiabulls Hsg -2.4 -19.3 -47.8 Pidilite Ind. -0.5 -2.3 11.4
Indostar Capital -0.9 -3.5 P&G Hygiene 0.9 -4.6 6.1
L&T Fin.Holdings -0.2 -13.2 -24.9 United Brew -0.5 0.7 21.5
LIC Hsg Fin -1.3 -10.8 -9.0 United Spirits -2.6 0.8 -23.9
M&M Fin. -1.6 -5.2 -22.4 Healthcare
Muthoot Fin -0.8 -4.2 33.0 Alembic Phar -1.9 0.7 2.2
MAS Financial Serv. -2.1 0.1 -4.1 Alkem Lab -0.2 -1.6 -14.5
ICICI Pru Life 1.1 1.3 -13.8 Ajanta Pharma 8.7 4.0 -19.8
PNB Housing -4.0 -25.7 -51.7 Aurobindo -2.5 1.3 26.2
Repco Home 0.0 -10.1 -28.7 Biocon -5.4 -8.9 -15.5
Shriram City Union -2.0 -9.5 -32.3 Cadila -3.0 -8.5 -22.4
Shriram Trans. -1.3 -8.7 -29.6 Cipla 0.1 7.4 -7.5
Capital Goods Divis Lab -1.7 0.9 44.4
ABB 0.0 11.4 9.4 Dr Reddy’s -0.4 4.5 38.2
Bharat Elec. 1.2 -12.7 -32.3 Glenmark -1.8 -3.6 13.8
3 May 2019 37
MOSL Universe stock performance
Company 1 Day (%) 1M (%) 12M (%) Company 1 Day (%) 1M (%) 12M (%)
Granules -0.8 -2.1 4.1 Spencer's Retail -4.0 -13.3
GSK Pharma 0.4 -0.6 10.1 Shoppers St. 1.9 -1.5 -17.1
IPCA Labs 2.1 2.1 33.4 Titan Co. -1.5 2.3 17.9
Jubilant Life -0.7 -4.5 -21.3 Trent 2.7 0.7 4.6
Laurus Labs 5.6 3.2 -20.1 V-Mart Retail 0.1 3.0 38.0
Lupin 0.5 12.6 9.3 Technology
Sanofi India -0.7 -5.4 14.7 Cyient 1.0 2.5 -26.2
Shilpa Medicare -2.9 13.1 -18.6 HCL Tech. -2.0 5.4 15.9
Strides Pharma 0.4 1.7 -23.0 Hexaware -1.3 -4.2 -23.6
Sun Pharma -1.2 -3.9 -12.4 Infosys -2.7 -3.6 21.9
Torrent Pharma -1.5 -6.5 28.0 L&T Infotech 0.5 0.4 12.6
Infrastructure Mindtree 0.0 3.8 -6.7
Ashoka Buildcon -2.1 -9.2 -35.5 Mphasis 1.8 -0.7 -2.1
IRB Infra.Devl. 0.2 -21.0 -54.7 NIIT Tech -0.9 -4.9 16.6
KNR Construct. -0.7 -7.7 -25.2 Persistent Sys -1.7 -0.6 -19.1
Sadbhav Engg. -0.7 -5.5 -38.4 Tata Elxsi -3.7 -8.8 -26.2
Logistics TCS -1.8 6.5 26.6
Allcargo Logist. -1.7 -6.0 -23.1 Tech Mah 0.0 5.4 26.0
Concor 4.4 -3.5 -3.2 Wipro -1.6 12.2 42.1
Media Zensar Tech 5.0 6.0 -5.4
D B Corp -1.1 -0.4 -37.7 Telecom
Ent.Network -0.3 -6.8 -27.0 Bharti Airtel 1.4 -1.1 -13.3
Jagran Prak. -1.5 -6.7 -33.3 Bharti Infra. 3.3 -13.9 -13.7
Music Broadcast 1.7 -0.5 -21.6 Idea Cellular 4.2 -3.8 -60.0
PVR 2.1 8.8 27.9 Tata Comm 1.2 -6.2 -9.7
Sun TV -2.5 -12.7 -35.6 Utiltites
Zee Ent. -3.2 0.1 -29.8 Coal India 0.0 6.5 -10.3
Metals CESC -1.1 -4.6 -14.5
Hindalco -0.5 -5.6 -10.3 JSW Energy 1.4 -7.4 -14.0
Hind. Zinc -1.7 -3.7 -11.7 NHPC Ltd -0.9 -9.2 -17.9
JSPL 1.7 -2.4 -24.3 NTPC -0.2 -1.2 -6.1
JSW Steel -0.3 6.5 -2.6 Power Grid 2.0 -4.9 -7.3
Nalco -0.1 -6.4 -35.0 Tata Power -1.5 -10.0 -23.2
NMDC 0.5 -4.1 -18.5 Torrent Power 1.8 -2.3 6.3
Rain Industries 2.7 16.2 -61.5 Others
SAIL 0.6 -0.3 -23.0 Brigade Enterpr. 0.2 -11.3 -18.8
Vedanta 0.9 -10.3 -40.6 BSE 1.5 2.7 -22.7
Tata Steel -0.3 4.5 -3.5 Castrol India -1.6 -9.2 -25.0
Oil & Gas Coromandel Intl -0.7 -12.5 -4.8
Aegis Logistics -0.3 -4.7 -33.4 Delta Corp -2.6 -12.1 -8.7
BPCL -0.3 -0.8 -0.8 Godrej Agrovet 0.2 -4.1 -25.9
GAIL -2.3 -4.0 7.5 Indian Hotels -0.8 -3.1 3.8
Gujarat Gas 2.2 8.9 -8.0 Interglobe 1.5 11.1 14.1
Gujarat St. Pet. -0.3 10.0 10.0 Info Edge 1.2 8.3 57.8
HPCL -2.9 2.7 -5.3 Kaveri Seed 1.9 -3.0 -12.5
IOC 0.2 -0.1 -1.8 Lemon Tree Hotel -0.5 -12.5 -4.6
IGL -1.1 3.2 10.4 MCX -0.4 7.8 12.9
Mahanagar Gas -0.9 -4.3 7.4 Navneet Educat. -0.8 -2.2 -24.4
MRPL -1.3 -3.8 -33.5 Oberoi Realty 1.0 -5.7 -5.2
Oil India 0.5 -0.9 -18.1 Phoenix Mills 0.9 -8.9 -2.9
ONGC 0.0 7.6 -5.8 PI Inds. -0.3 -2.3 19.9
PLNG -0.9 -3.9 5.6 Piramal Enterp. 0.8 -10.1 -8.2
Reliance Ind. 1.0 1.2 44.4 Quess Corp -0.8 -6.4 -39.3
Retail SRF 0.8 8.3 10.3
Aditya Bir. Fas. -2.5 -4.9 44.0 S H Kelkar -1.3 -4.2 -39.6
Avenue Super. -2.2 -15.2 -15.3 Tata Chemicals -0.3 -3.2 -24.7
Future Lifestyle 1.0 5.4 13.8 Team Lease Serv. 1.8 -1.3 10.5
Future Retail 0.4 -9.7 -29.4 Trident 1.0 -5.1 -2.6
Jubilant Food 1.7 -6.6 5.6 UPL -0.4 4.0 31.5
3 May 2019 38
THEMATIC/STRATEGY RESEARCH GALLERY
REPORT GALLERY
RECENT INITIATING COVERAGE REPORTS
`
DIFFERENTIATED PRODUCT GALLERY
Explanation of Investment Rating
Investment Rating Expected return (over 12-month)
BUY >=15% Strategy
SELL < - 10%
NEUTRAL > - 10 % to 15%
UNDER REVIEW Rating may undergo a change
NOT RATED We have forward looking estimates for the stock but we refrain from assigning recommendation
* In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
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to exempt MOSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSL
or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring Centre, 2nd Floor, Palm
Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id: na@motilaloswal.com, Contact No.:022-30801085.
Registration details of group entities: MOSL: SEBI Registration: INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser:
INA000007100.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 Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate
products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
*MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law Tribunal, Mumbai Bench. The existing registration no(s) of
MOSL would be used until receipt of new MOFSL registration numbers.
February 2019 42

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Premarket MorningIndia Motilal 03.05.19

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3 May 2019

Market snapshot Today’s top research Idea

Chart of the Day: Technology – Revenue growth deceleration is expected to continue

Highlights from 1QCY19 performance

Revenue growth deceleration is expected to continue

*: Guidance midpoint Source: MOFSL

Highlights from management commentary on the earnings call:

Quarterly Perf. (Cons.) (INR M)

L&T Finance Holdings

Future Lifestyle Fashions

Quarterly Performance (Consolidated, INR m)

Consol. - Quarterly perf. (INR m)

Snapshot of volumes for April-19

Snapshot of volumes for April-19

Snapshot of volumes for April-19

Snapshot of volumes for April-19

Snapshot of volumes for April-19

Snapshot of volumes for April-19

Consolidated Performance (INR Million)

Quarterly Performance (Consolidated)

Consolidated - Quarterly Earning Model

1. BAJAJ AUTO: MARKET CONTINUES TO BE SOFT; Rajiv Bajaj,

2. BANDHAN BANK: HAS CLOSED YEAR WITH 45% YEAR-ON-

3. ZENSAR TECHNOLOGIES : DEAL WINS IN FY19 STAND AT $750

4. GODREJ PROPERTIES: AIMING TO BECOME LEADER IN

1. INDIA'S EXPORTS: ARE THERE SIGNS OF RECOVERY?

2. EMBRACING DIGITAL TECH ACROSS INDUSTRY

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