(Kotak) Strategy March 2018 Quarter Earnings Preview PDF

Company Report
Strategy INDIA
INDIA
April 05, 2018
BSE-30: 33,597
CPI inflation:4.44%
March 2018 quarter earnings preview. We expect 4QFY18 net income of the KIE US$/INR: 65.1
coverage universe to grow 7% yoy. We expect strong growth in the net income of
(1) automobiles (volume growth aided by low base of MHCVs and 2-Ws), (2) consumer
products (margin improvement on cost-saving initiatives, operating leverage and GST-
led savings), (3) industrials (government ordering), (4) metals & mining (higher realizations
and improved profitability) and (5) NBFCs (strong rural cash flows and high growth in
CVs) sectors. We model net loss for (1) banks under coverage (high loan-loss provisions,
low loan growth and lower investment gains) and (2) telecom (sharp fall in revenue due
to intense competition, ARPU down-trading and impact of international termination
rate cuts). We expect net income of the BSE-30 Index to increase 10% yoy and for
Nifty-50 Index we expect net income to increase 4% yoy. Downstream companies,
which are part of Nifty-50 Index but not of the BSE-30 Index, will report yoy decline in
net income. We estimate ‘EPS’ of the BSE-30 Index at `1,778 for FY2019E and `2,175
for FY2020E. Our ‘EPS’ estimates for Nifty-50 Index for FY2019E and FY2020E are
`567 and `685.
We expect net income of the KIE universe to grow 7% yoy in 4QFY18

Sector-wise earnings of the KIE universe
Sales growth (%) EBITDA growth (%) EBITDA margin (%) PAT growth (%)
yoy qoq yoy qoq Mar-17 Dec-17 Mar-18E yoy qoq
Automobiles 22.1 16.2 24.3 22.7 13.7 13.2 14.0 18.2 50.8
Banks/Financial Institutions 7.5 2.8 — — — — — 23.1 (37.9)
Cement 23.8 10.8 28.7 16.7 17.5 17.2 18.1 14.0 26.9
Consumer Products 12.6 8.2 21.4 10.5 20.7 21.9 22.3 23.8 8.0
Energy 22.1 9.5 16.1 (8.2) 12.8 14.5 12.2 (4.5) (7.4)
Industrials 10.3 36.1 26.5 62.9 10.6 10.2 12.2 14.3 87.8
Infrastructure 14.2 2.7 2.6 (5.7) 37.8 37.0 33.9 (8.3) 5.0
Internet 12.7 3.7 43.1 8.8 24.4 29.6 31.0 90.4 35.3
Media 9.9 (3.3) 10.2 (10.1) 29.9 32.2 30.0 5.7 (15.8)
Metals & Mining 8.7 8.0 21.6 22.9 22.6 22.3 25.3 22.9 36.3
Others 23.1 10.1 28.2 9.1 13.6 14.3 14.1 23.0 4.2
Pharmaceuticals 7.6 3.4 17.1 2.0 18.1 20.0 19.7 6.2 12.8
Real estate (13.7) (7.1) (19.0) (18.5) 28.0 30.0 26.3 (34.7) (92.2)
Technology 5.9 2.7 9.5 6.0 23.3 23.4 24.1 2.1 1.9
Telecom (11.6) (3.3) (18.4) (9.7) 31.8 31.5 29.4 (263.8) (808.0)
Utilities 8.7 5.2 19.2 7.8 38.2 40.9 41.9 3.5 (0.2)
Sanjeev Prasad
KIE universe 14.7 9.6 15.9 7.1 17.6 18.2 17.7 7.1 (1.4)
sanjeev.prasad@kotak.com
KIE universe (ex-energy) 11.3 9.6 15.8 13.3 20.2 20.4 20.9 11.4 0.6 Mumbai: +91-22-4336-0830
Source: Kotak Institutional Equities estimates

Sunita Baldawa
sunita.baldawa@kotak.com
Mumbai: +91-22-4336-0896
We expect net income of the BSE-30 Index to increase 10% yoy in 4QFY18
Sector-wise earnings of the BSE-30 Index Anindya Bhowmik
Sales growth (%) EBITDA growth (%) EBITDA margin (%) PAT growth (%) anindya.bhowmik@kotak.com
yoy qoq yoy qoq Mar-17 Dec-17 Mar-18E yoy qoq Mumbai: +91-22-4336-0897
Automobiles 19.6 18.9 20.1 26.2 14.0 13.2 14.0 14.0 66.8
Banking (0.4) 0.7 — — — — — 10.9 (28.9)
Consumers 10.5 13.6 16.2 11.9 26.8 28.6 28.2 14.3 6.1
Energy 33.9 16.2 36.6 1.4 21.0 24.5 21.4 18.8 9.6
Industrials 11.0 42.2 27.5 75.8 11.8 10.9 13.5 3.1 126.6
Infrastructure 5.7 (12.3) 4.9 (21.6) 59.8 66.4 59.3 (20.1) (6.2)
Metals & Mining 6.7 11.0 42.8 47.1 17.2 17.3 23.0 37.0 53.5
Pharmaceuticals (0.3) 1.9 (0.7) (4.7) 19.9 21.2 19.8 (22.5) (4.4)
Technology 4.4 2.5 6.0 6.5 25.6 25.0 26.0 (0.2) 2.4
Telecom (10.6) (3.5) (14.7) (10.2) 35.8 36.8 34.2 (184.4) (169.1)
Kotak Institutional Equities
Utilities 12.3 7.8 20.5 11.1 40.8 42.5 43.8 2.3 20.8
Research
BSE-30 Index 14.2 12.8 20.5 12.7 20.9 22.1 21.8 9.7 9.8
BSE-30 Index (ex-energy) 9.1 11.8 15.7 17.3 20.9 21.2 21.9 7.4 9.9 Important disclosures appear
at the back
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India Strategy
TABLE OF CONTENTS
Sector-wise expectations............................................................................................ 3
Automobiles................................................................................................................ 7
Banking....................................................................................................................... 10
Cement...................................................................................................................... 14
Consumers................................................................................................................ 15
Energy....................................................................................................................... 19
Industrials.................................................................................................................. 21
Infrastructure............................................................................................................. 23
Internet…………………………………………………………………………………….. 24
Media........................................................................................................................ 24
Metals & mining........................................................................................................ 25
Others....................................................................................................................... 27
Pharmaceuticals......................................................................................................... 29
Real estate................................................................................................................. 31
Technology................................................................................................................ 32
Telecom..................................................................................................................... 34
Utilities...................................................................................................................... 34
Disclosures................................................................................................................. 44
Sanjeev Prasad Kawaljeet Saluja Rohit Chordia

Co-head, Institutional Equities Head of Research (Consumer products, Telecom)
(Strategy) (Technology, e-commerce) rohit.chordia@kotak.com
sanjeev.prasad@kotak.com kawaljeet.saluja@kotak.com
Nischint Chawathe Murtuza Arsiwalla Chirag Talati, CFA

(NBFC) (Cement, Utilities) (Pharmaceuticals)
nischint.chawathe@kotak.com murtuza.arsiwalla@kotak.com chirag.talati@kotak.com
Hitesh Goel M.B. Mahesh, CFA Tarun Lakhotia

(Automobiles) (Banking) (Energy, Textiles, Chemicals, Agri-inputs)
hitesh.goel@kotak.com mb.mahesh@kotak.com tarun.lakhotia@kotak.com
Samar Sarda Suvodeep Rakshit Abhishek Poddar

(Real Estate) (Economy) (Cement, Metals)
samar.sarda@kotak.com suvodeep.rakshit@kotak.com abhishek.poddar@kotak.com
Sunita Baldawa Aditya Mongia Jaykumar Doshi

(Strategy, Database) (Industrials, Infrastructure) (Consumer products, Technology, Media)
sunita.baldawa@kotak.com aditya.mongia@kotak.com jaykumar.doshi@kotak.com
Nishit Jalan Garima Mishra Aniket Sethi

(Automobiles, Consumer Durables) (e-commerce, Aviation) (Consumer products, Telecom)
nishit.jalan@kotak.com garima.mishra@kotak.com aniket.sethi@kotak.com
Kumar Gaurav Abhijeet Sakhare Ajinkya Bhat

(Pharmaceuticals) (Banking, NBFC) (Industrials, Infrastructure)
kumar.g@kotak.com abhijeet.sakhare@kotak.com ajinkya.bhat@kotak.com
Anindya Bhowmik Akshay Bhor Dipanjan Ghosh

(Strategy, Database) (Energy, Textiles, Chemicals, Agri-inputs) (Banking, NBFCs)
anindya.bhowmik@kotak.com akshay.bhor@kotak.com dipanjan.ghosh@kotak.com
Samrat Verma
(Cement, Metals, Utilities)
samrat.verma@kotak.com
The prices in this report are based on the market close of April 5, 2018.
2 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Strategy India
SECTORS-WISE EXPECTATIONS
Exhibit 1: We expect yoy growth in the net income of automobiles, consumer products and metals & mining sectors
Sector-wise expectations for the March 2018 quarter results
Key points Key points
Automobiles We expect a strong quarter for auto companies—revenue/EBITDA/net profit are likely We expect EBITDA for Ashok Leyland, M&M and Maruti to increase by
to improve by 22%/24%/18% yoy led by strong volume growth across segments. 56%/48%/27% yoy in 4QFY18. These OEMs will benefit from (1) strong volume
Barring Tata Motors, we expect revenues of companies under our coverage to growth in their respective segments and (2) 140-250 bps yoy improvement in EBITDA
increase by 21% yoy (aided by a low base in MHCV and two-wheeler segments) but margin. Two-wheeler OEMs—Bajaj, Eicher, Hero, TVS—will likely report EBITDA
expect EBITDA margins to remain flat yoy as operating leverage benefits are offset by growth of 40%, 35%, 49%, 109% yoy in 4QFY18 on strong volume growth aided
higher RM costs. We expect companies with high exposure to MHCVs and two- partly by the low base last year. On the other hand, reported net profit will likely be
wheeler segments to report particularly strong results. Escorts, M&M and Maruti will flattish for Motherson and Tata Motors in 4QFY18.
all report strong numbers while quarterly results of Motherson Sumi and Tata Motors
will be relatively subdued.
Banks We expect banks under coverage to report to a net loss, driven by high loan-loss We expect most banks to deliver weak performance on asset quality. The benefit of
provisions (up 25% yoy and 30% qoq), low NII growth (up 4-5% qoq and yoy) and the recent IBC transactions in the steel sector will likely reflect in FY2019E. We await
relatively lower investment gains (down 20% yoy). Credit cost for the banks under the impact of the new RBI guidelines on stress resolution as this will determine the
coverage is expected to increase to 3.5% (up 70 bps qoq and 20 bps yoy), reflecting outlook on slippages in the near term. Banks will benefit from strong and steady
slippages from the pool of unrecognized stress loans (SDR, S4A, 525, etc.) arising growth in retail assets across housing, vehicle and unsecured loans, with little concern
from the recent RBI guidelines. We expect public banks to report elevated slippages, on retail asset quality at this point. Banks will also benefit from some shift in credit
while private banks will also likely report a sharp rise in slippages (led by Axis Bank back to the banking system from CP/NCD market due to volatility in bond yields.
and ICICI Bank). Banks, especially PSUs will benefit from the recent RBI dispensation 4QFY18E also marks the impact of increase in liquidity coverage ratio for banks to
to spread MTM losses (for 3QFY18 and 4QFY18) over four quarters, leading to a 90% (from 80%), possibly leading to tighter liquidity and greater reliance on
reversal in last quarter’s investment provisions . Other underlying trends remain borrowings.
unchanged i.e. gradual improvement in loan growth driven by retail and offset by
overall NIM pressure. We expect private banks to lead loan growth (18% yoy)
compared to PSUs (4% yoy), as retail loan growth momentum continues.
NBFCs We expect most NBFCs to deliver 18-53% yoy growth in core PBT supported by
improving loan growth, margins and asset quality. Strong rural cash flows, high
growth in CV/construction equipment, increasing momentum in housing and a decline
in borrowings costs during 1HFY18 are key drivers. High loan growth will provide a
boost to PNBHF (PAT up 53%) and Bajaj Finance (PAT up 35%). Higher NIMs and
control over expenses will drive earnings for L&T Finance, Cholamandalam while
lower credit costs will be the key driver for Shriram Transport Finance . HDFC’s strong
earnings growth is backed by improving momentum in its retail business and float
income from its recent capital issuance.
Cement All-India retail cement prices saw a modest increase of Rs5/bag qoq in 4QFY18 led by Among pan-India names, we expect EBITDA of ACEM, ACC and Ultratech to increase
improvement in Jan-Feb 2018 although prices again declined in March. Our channel by 1-30% yoy largely led by a favorable base (lower prices and volumes post
checks indicate that prices increased by Rs6-10/bag qoq in South and East regions demonetization). Ultratech will also benefit from ramp-up of acquired capacities of
while it declined by Rs3/bag qoq in North. Cement prices in West were largely flat Jaiprakash Associates. We expect ACC to report modest EBITDA growth (KIE: +1%
qoq. On the cost side, we expect input costs to rise for all the companies due to yoy) due to subdued prices in South on a yoy basis after prices corrected in the region
increase in pet coke prices. Industry volumes increased 21% yoy for Jan-Feb 2018 (as in 1HFY18. We expect other names with large presence in South India including
per DIPP data) on a low base as 4QFY17 was impacted by slowdown post Dalmia Bharat (EBITDA: +2% yoy) and India Cement to also report subdued earnings.
demonetization; on two-year basis (2016-2018) volumes have increased at a CAGR We expect Shree Cement to report EBITDA growth of 38% yoy led by higher volumes
of only 2% for these months. Likewise, we expect companies under our coverage to (+8% yoy) and higher prices in North and East on a yoy basis.
report strong volume growth largely due to a favorable base.
Consumer We note that reported numbers for 4QFY18 will not be strictly comparable yoy due to ITC: We model 4% decline in cigarette volumes yoy and a 12% increase in gross
products GST-led changes in the current quarter and post-demonetization re-stocking in the realizations (portfolio-level; dragged by adverse mix). We forecast 8.5% yoy growth in
base quarter. On a reported basis, we expect 4QFY18 growth comps to continue with cigarette EBIT. We model modest acceleration in yoy growth for all the other
the previous quarter’s positive momentum despite a not-so-weak base (4QFY17). segments (low base). Expect other FMCG revenues to grow ~17% yoy (comparable).
Consequently, we expect the performance to be between solid and spectacular, HUVR: We model 14% revenue growth in domestic FMCG business (comparable)
especially on operating and net profit lines. Overall, we expect aggregate revenues to aided by 8% UVG and 6% price-led growth; this implies a 2-year UVG CAGR of 6%.
grow by 12% (staples to grow at 10% and discretionary growth higher at 14%) and Our channel checks suggest healthy share gains for the organized players in
EBITDA/recurring PAT to grow at 20%+ yoy. Aggregate EBITDA margin is likely to categories such as soaps and detergents, HUL being a key beneficiary. We expect
expand 155 bps yoy (higher in discretionary) aided by almost flattish A&SP spends (as EBITDA margin to expand 130 bps yoy aided by 240 bps expansion in GM (partly GST-
% of sales), cost-saving initiatives, operating leverage and GST-led tailwinds (indirect linked). We model some reinvestment of this GM expansion into higher A&P intensity.
savings).
Energy Upstream: We expect OIL and ONGC to report strong sequential improvement in net Downstream: We expect OMCs to report sequentially lower profits, led by a sharp
income, driven by higher crude oil realizations (+US$6/bbl qoq) and higher other decline in adventitious gains from 3QFY18 levels, which will be partly offset by higher
income including dividends received from HPCL and IOCL. marketing margins on auto fuels. BPCL may gain due to likely improvement in Kochi
Gas: We expect GAIL to report sequential increase in EBITDA, led by strength across performance, while IOCL may be negatively impacted due to lower throughput at
key business segments. We expect PLNG to report sequentially stable EBITDA as Paradip.
lower volumes at Dahej will be offset by higher tariffs. CGD companies are expected RIL: We expect RIL to report modest qoq increase in standalone net income led by (1)
to report robust profits, led by continued strength in volumes and unit EBITDA steady refining margins at US$11.6/bbl and (2) increase in petchem volumes, which
margins. will be partially offset by moderation in margins; consolidated results will be boosted
by higher contribution from Jio.
Industrials Within the EPC space, government ordering on multiple fronts (infrastructure, Ports: Major ports have reported 5% overall volume growth and 8-9% container
hydrocarbon, water) will drive growth for L&T. We expect low-single digit core E&C volume growth in FYTD18. We model a similar 5-6% cargo growth for ADSEZ in
order inflow growth for L&T in FY2018. Execution in core EPC segments is expected FY2018 (+3% in 4QFY18) and expect it to report 20%+ container growth (~2X of all
to grow ~9% yoy in FY2018 and ~10% in 4QFY18 driven by infrastructure and strong India growth as guided by the management). Adani Power's Mundra TPS, however,
execution in overseas hydrocarbon business. Power generation sector, on the other has sharply reduced coal imports in recent months, which will result in 8% sequential
hand, remains subdued. Resolution of stuck orders and final award of delayed L1 decline in overall volumes in 4QFY18. We expect GPPV to post 10% qoq volume
orders has improved executable backlog for BHEL ,which will drive low single-digit growth driven by recent container service additions, which will also improve margin
growth in 4QFY18. Growth in capital goods companies (ABB, Carborundum Universal, due to operating leverage.
Cummins, Siemens and Thermax) is expected to be limited to base orders (efficiency Logistics: Based on Indian Railways' data, we expect qoq volume growth of 5% in
improvement projects and opex/replacements) as private sector capex remains muted EXIM and 1% in domestic volumes for Concor in the quarter. The lead distance,
despite increasing enquiries. however, continues to decline and will impact per TEU realization. Increased double
stacking and control on empties cost through circuit routes will improve EBITDA
margin (~100 bps over 9MFY18).
Roads: With recent order wins (Sadbhav) and existing backlog (Ashoka), road EPC
companies will see strong execution (~10% growth expected), while BOT-focused
companies (IRB) are adjusting to the reality of HAM. NHAI has ordered projects worth
7,400 km in FY2018, over half of which in the past two months. We expect road
companies to report strong order inflow/backlog in the quarter.
KOTAK INSTITUTIONAL EQUITIES RESEARCH 3

India Strategy
We expect yoy growth in the net income of automobiles, consumer products and metals & mining sectors
Sector-wise expectations for the March 2018 quarter results
Key points Key points
Internet We expect Just Dial's growth trajectory at 10% yoy to remain sluggish owing to
muted pace of new listings addition. INFOE's core Naukri segment will post 13% yoy
revenue growth on improving hiring trends. Clarity on RERA will bring back advertisers
on 99acres, thereby driving a strong 30% yoy growth in revenues.
Media Broadcasting and distribution: TV industry ad spends grew at 13-15% yoy in March Print media: Print advertising spends continue to be subdued. We expect divergence
2018 quarter on a low base. We expect Zee to report strong 21% yoy growth in ad in ad growth of Jagran and DB Corp. in March 2018 quarter largely due to base effect:
revenues (like-for-like) adjusted for the sale of its sports business and acquisitions. (1) we estimate DB Corp. to report 9% yoy growth in print advertisement revenue on
Sun TV will likely report 20% yoy growth in ad revenues on a favorable base due to favorable base (2-year CAGR at 3%), (2) we estimate flat print advertisement revenue
better monetization. For Dish TV Videocon (merged entity), we expect 280,000 net for Jagran due to shortfall in government and political advertising (UP elections last
subscriber additions (down 8% yoy) and flat ARPU on qoq basis. year aided base quarter numbers despite demonetization); 2-year CAGR at 1%.
Multiplex industry: March quarter is a seasonally weak quarter for the multiplex
industry. This year it is different though, thanks to deferred release of the blockbuster
movie 'Padmaavat'. PVR will report its strongest March quarter. Expect all metrics to
be robust except for comparable properties' footfalls, which will decline despite good
box office performance.
Metals Ferrous: Domestic steel prices increased by Rs4,000-5,000/ton qoq in Non-ferrous: Base metal prices increased by 1-6% qoq led by zinc (+6% qoq) while
4QFY18—price increases were higher for long products than flats . The gains from aluminum prices increased by 3% qoq. We expect companies to report hedging losses
higher realizations will be partially offset by increases in coking coal and iron-ore in the quarter due to metal hedged at lower prices earlier—earnings of Hindustan Zinc
costs. We estimate EBITDA/ton for domestic steel companies to increase by 11-27% and Hindalco will be impacted. We expect Hindustan Zinc's EBITDA to increase by 2%
qoq—we estimate EBITDA/ton for Tata Steel to increase by 18% qoq to qoq to Rs33.2 bn—we estimate hedging losses of Rs 3.3 bn for the quarter. We
Rs16,500/ton, JSW Steel to increase by 11% qoq to Rs9,990/ton and Jindal Steel & estimate Vedanta's EBITDA to increase by 3% qoq to Rs69.8 bn—sequential
Power to increase by 27% qoq to Rs12,400/ton. We expect Jindal Steel & Power to improvement will be led by higher oil & gas, aluminum earnings. We estimate a 5%
report net income in 4QFY18 after losses for 13 consecutive quarters. We estimate qoq increase in Hindalco's EBITDA to Rs16.4 bn (includes Utkal Alumina); we build in
net income for Tata Steel to increase to Rs30.2 bn (Rs24.1 bn in 3QFY18) and JSW moderate cost increases for Hindalco due to higher coal costs. We expect Nalco's
Steel to Rs17.8 bn (Rs14.5 bn in 3QFY18). EBITDA to increase by 15% qoq to Rs6 bn led by higher alumina sales (14 shipments)
partially offset by lower alumina realizations.
Pharmaceuticals We expect US revenues to remain in focus this quarter, with the Street likely to look We expect SUNP's EBITDA margin at 20.2%, while LPC’s EBITDA margin would also
for signs of stabilization. We expect domestic formulation sales to continue to remain under pressure at ~19%. We expect Cipla's EBITDA margin to remain steady
improve on post-GST re-stocking and forecast 12-18% yoy organic growth depending at ~20%, helped by all-round growth, which will absorb the increased R&D spending
on portfolio and distribution strength, with Cipla and Biocon being outliers with >25% in the quarter (7.6% of sales). DRRD margins should decline given adverse product
growth benefitting from subdued base in 4QFY17. We expect US revenues to remain mix with EBITDA margin expected to contract 100 bps to ~19%. We expect ARBP
under pressure for the broader sector as the lack of meaningful approvals and pricing margins to remain steady at ~22%. We expect APHS to face continuing margin
pressure in existing products constrain growth. We expect SUNP's US business to pressures while HCG should benefit from continued momentum across its network.
remain stable in the quarter and expect the base to stabilize for Taro with revenues We expect DLPL's EBITDA margin to remain stable at 22%.
now down 40% from peak levels. LPC will also continue to be impacted by price
erosion in Fortamet/Glumetza while recent Tamiflu, Axiron and Gavis launches should
help the base. We expect DRRD to have negative swing post a seasonally stronger
3QFY18, and also expect pricing hits to Decitabine. We expect Cipla's US business to
grow on the back of new launches, with 4QFY18 reflecting first full-quarter impact of
Budesonide and Decitabine launches. We expect healthcare services to have a mixed
quarter, with DLPL likely to see strong 22% yoy growth helped by a low base.
Real estate Financials: Low credit availability has resulted in small developers holding back Operations: 4QFY18 was another weak quarter on sales across metros. Our channel
launches (also due to weak demand) or partnering with select developers. Our checks suggest several projects/developers took price cuts and offered discounts at
channel checks suggest slower pace of re-financing from NBFCs during a seasonally their ongoing (and even completed) projects with unsold inventory. In the listed space,
strong quarter for lending. We expect debt to increase for Prestige (on account of Sobha continues to perform well on sales and will record pre-sales growth in FY2018;
acquisitions, consolidation and PE payoffs), DLF (negative OCF + new land DLF is likely to see traction in Phase-5, Gurgaon projects. We expect sales to remain
acquisition), Oberoi (negative OCF in Three Sixty West) and Brigade (we estimate steady (to lackluster) for others.
negative OCF to continue). Sobha continues to outperform others on operations.
Technology We expect c/c revenue growth of 0.5-2.2% for our Tier-1 coverage universe. HCLT will We expect Infosys to guide on a conservative note at 6-8% revenue growth on c/c
lead the industry with 2.3% c/c growth aided by contribution from new IP deals basis for FY2019. Even as the macro environment is positive, translation of the same
(0.7%). Tech Mahindra could disappoint with weak organic c/c revenue growth. We into pipeline and deals will materialize gradually. We expect Infosys to retain 23-25%
expect Infosys to grow 0.5% in c/c within the guidance band and TCS to report 1.3% EBIT margin band. We expect HCLT to guide for 9.5-11.5% USD revenue growth,
c/c growth. Depreciation of USD against GBP and EUR will provide 100-130 bps cross- which translates into 8-10% c/c revenue growth and 6.2-8.2% on c/c organic basis.
currency tailwind for companies in the space. EBIT margin will remain stable or We expect HCLT to guide for EBIT margin in the range of 19.5-20.5%. We expect
increase sequentially courtesy depreciation of INR against all key currencies barring investor focus on (1) demand outlook from large banking clients. IT spending of large
USD. Mid-tier companies will report 2-3% c/c revenue growth sequentially despite banks is robust but is not translating into demand for Indian IT due to captive shift
seasonal weakness. Growth will be buoyed with share gains in existing large clients and insourcing. TCS, courtesy its large exposure, has been hit the most due to the
and benefits of large deals signed in the past 6-9 months. We expect stable margins change in sourcing strategy of banking clients. (2) pickup in digital
on a sequential basis for our coverage midcap universe and increase on yoy basis for spends—essentially, industrialization of digital services and (3) allocation of budgets
Mindtree and Mphasis. to projects, which normally picks pace in March and April.
Telecom Jio’s pricing moves in the month of Jan 2018, impact of international termination rate Our ARPU forecasts for Bharti and Idea for 4QFY18E are Rs115 (down 8.6% qoq) and
(ITR) cut effective Feb 1, 2018, and continued ARPU downtrading are likely to reflect in Rs104 (down 9% qoq), respectively. We expect volume surge in voice as well as data
another quarter of sharp sequential revenue decline for the incumbents. Continued to continue. At a consolidated level for Bharti Airtel, prognosis for the quarter is weak:
exits in the challenger pack are likely to pressure BHIN’s financials further. TCOM is we expect a 10% qoq and 15% yoy decline in consolidated EBITDA to Rs67 bn
likely to report a stable, unexciting quarter. Weak FY2018E exit makes for a bleak despite healthy trends sustaining for the Africa ops . For Idea—with similar underlying
FY2019E prognosis for now unless there is a quick reversal in Jio’s recent aggressive operating trends (similar or slightly higher qoq decline in ARPU and revenues), we
pricing stance. expect a sharper 23% qoq and 55% yoy decline in Idea’s EBITDA to Rs 9.5 bn. BHIN is
likely to report another soft quarter. EBITDA improvement for TCOM in growth
services is mitigated by likely decline in traditional services margins.
Utilities Trailing three-month power consumption grew 7% yoy, which augurs well for overall We expect healthy growth in net profits for Power Grid (15% yoy in 4QFY18) on the
capacity utilization. Merchant tariffs have spiked (+37% yoy) with average exchange- back of Rs326 bn of asset capitalization in the trailing 12 months. NTPC's reported
traded tariffs in 4QFY18 at Rs3.48/kwh (Rs2.53/kwh in 4QFY17). However, rising PAT is estimated to decline 7% yoy owing to prior period revenues of Rs5.2 bn
prices of imported coal (US$94/ton in 4QFY18 compared to US$83/ton in 4QFY17) as accounted for in 4QFY17. 6% yoy power generation growth for NTPC will reflect
well as revision in prices of domestic coal from January 2018 will lead to higher fuel commercialization of 4.8 GW in the trailing 12 months.
costs.

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10
30
10
20
50
60
30
40
0
(10)
(20)
10
40
50
20
30
(20)
(10)
0
(10)
(20)
Mar-09 Mar-09 Mar-09
Strategy
Jun-09 Jun-09 Jun-09

Sep-09 Sep-09 Sep-09
Dec-09 Dec-09 Dec-09
KOTAK INSTITUTIONAL EQUITIES RESEARCH


Adjusted earnings growth of BSE-30 Index (%)

Exhibit 2: We expect net income of the BSE-30 Index to increase 10% yoy in 4QFY18

BSE-30 Index earnings growth (%)

BSE-30 Index earnings growth ex-energy (%)

BSE-30 Index earnings growth ex-energy ex-banks (%)

10.1

(1.5)

9.2

Mar-18E Mar-18E
5
6.6
7.4
Mar-18E
9.7 9.7
India
India Strategy
Exhibit 3: Sector-wise net income of companies in the KIE universe (` bn)
Net sales EBITDA PAT

Company (#) Mar-17 Dec-17 Mar-18E Mar-17 Dec-17 Mar-18E Mar-17 Dec-17 Mar-18E
Automobiles (23) 1,598 1,679 1,951 219 222 273 114 89 135
Banks/Financial Institutions (35) 920 962 989 — — — 102 202 126
Cement (10) 234 262 290 41 45 53 21 19 24
Consumer Products (24) 515 536 579 107 117 129 68 78 85
Energy (12) 3,404 3,797 4,157 435 551 505 289 298 275
Industrials (13) 655 531 723 70 54 88 48 29 55
Infrastructure (8) 73 81 83 28 30 28 19 17 18
Internet (2) 4 4 4 1 1 1 1 1 1
Media (6) 51 58 57 15 19 17 7 9 7
Metals & Mining (9) 1,246 1,253 1,354 282 279 343 140 126 172
Others (18) 249 278 306 34 40 43 21 25 26
Pharmaceuticals (12) 277 289 298 50 58 59 29 27 31
Real estate (7) 57 53 49 16 16 13 5 45 4
Technology (9) 862 889 913 201 208 220 160 161 164
Telecom (4) 379 346 335 121 109 98 8 (1) (13)
Utilities (7) 367 379 399 140 155 167 55 57 57
KIE universe 10,891 11,397 12,487 1,760 1,903 2,039 1,087 1,182 1,165
KIE universe (ex-energy) 7,486 7,600 8,330 1,325 1,353 1,533 799 884 890
Exhibit 4: Sector-wise net income of companies in the BSE-30 Index (` bn)

Automobiles (5) 1,180 1,186 1,411 165 157 198 84 57 95
Banking (8) 498 493 496 — — — 89 139 99
Consumers (3) 232 226 257 62 65 72 42 46 49
Energy (2) 1,065 1,228 1,427 223 301 305 133 144 158
Industrials (1) 368 287 409 43 31 55 33 15 34
Infrastructure (1) 22 27 24 13 18 14 12 10 9
Metals & Mining (2) 563 542 601 97 94 138 61 54 83
Technology (3) 612 624 639 157 156 166 125 122 125
Telecom (1) 219 203 196 79 75 67 4 5 (4)
Utilities (2) 271 283 305 111 120 134 48 40 49
BSE-30 Index 5,139 5,203 5,871 971 1,039 1,171 646 645 709
BSE-30 Index (ex-energy) 4,074 3,975 4,444 748 738 865 512 501 550
Source: Companies, Kotak Institutional Equities estimates
Exhibit 5: Sector-wise net income of companies in the Nifty-50 Index (` bn)

Automobiles (6) 1,199 1,209 1,436 170 164 206 88 62 101
Banking (11) 600 614 623 — — — 107 166 126
Cement (2) 95 120 129 18 21 26 10 9 12
Consumers (4) 267 268 297 65 69 77 44 49 51
Energy (6) 3,289 3,660 4,014 410 519 474 269 278 255
Industrials (1) 368 287 409 43 31 55 33 15 34
Infrastructure (1) 22 27 24 13 18 14 12 10 9
Media (1) 15 18 17 5 6 4 4 4 3
Metals & Mining (4) 899 895 943 184 175 219 95 81 113
Others (1) 53 42 59 11 8 12 7 5 7
Technology (5) 808 830 852 192 198 210 154 153 156
Telecom (2) 255 240 232 94 91 83 10 11 2
Utilities (2) 271 283 305 111 120 134 48 40 49
Nifty-50 Index 8,326 8,676 9,526 1,352 1,458 1,551 901 902 938
Nifty-50 Index (ex-energy) 5,037 5,017 5,513 941 939 1,078 631 624 683

Strategy India
4QFY18/1QCY18 EARNINGS PREVIEW FOR KIE UNIVERSE

Company-wise earnings of the KIE universe (` mn)
Change (%)
Mar-17 Dec-17 Mar-18E yoy qoq Comments
Automobiles
Amara Raja Batteries
Net sales 13,445 15,535 15,596 16.0 0.4 According to our estimates revenue would increase by 16% yoy due to (1) 22% yoy
EBITDA 1,844 2,416 2,379 29.0 (1.5) revenue growth in automotive segment led by price increases (to pass on impact of
EBIT 1,345 1,828 1,779 32.3 (2.7) higher lead prices) and volume growth and (2) single-digit revenue growth in industrial
PBT 1,480 1,985 1,907 28.8 (3.9) segment led by entry into home UPS segment.
Reported PAT 992 1,345 1,277 28.8 (5.0)
Extraordinaries — — — — —
We expect EBITDA margin to decline by 30 bps qoq (up 150 bps yoy) due to increase in
Adjusted PAT 992 1,345 1,277 28.8 (5.0)
lead prices (up 3.5% qoq).
EPS (Rs/share) 5.8 7.9 7.5 28.8 (5.0)
EBITDA margin (%) 13.7 15.6 15.3 153 bps -30 bps
Apollo Tyres
Net sales 33,256 40,501 39,517 18.8 (2.4) We expect standalone revenues to increase by 16% yoy due to (1) 13% yoy increase in
tonnage volumes due to strong pickup in MHCV segment (both OEM and replacement)
EBITDA 3,699 4,964 5,209 40.8 4.9 and continued strong growth in PV segment and (2) 3% yoy increase in ASPs (flat qoq)
due to price increases and better mix. We expect standalone EBITDA margin to increase
EBIT 2,333 3,450 3,559 52.5 3.1 by 240 bps yoy to 14% (up 30 bps qoq) due to lower rubber prices and operating
leverage benefits. Standalone net profit will likely increase by 19% yoy compared to
PBT 2,585 3,504 3,489 34.9 (0.4) 40% yoy EBITDA growth due to normalization of tax rate (29% in 4QFY18 versus
Reported PAT 2,282 2,453 2,442 7.0 (0.5) 15.8% in 4QFY17).
Extraordinaries — — — — — We expect Europe revenues to grow by 22% yoy in 4QFY18 led by (1) 10% yoy volume
Adjusted PAT 2,282 2,453 2,442 7.0 (0.5) growth aided by ramp-up of Hungary plant and (2) 11% INR depreciation versus Euro.
EPS (Rs/share) 4.5 4.3 4.3 (4.8) (0.5) We build in EBIT margin of 4% in our estimates in 4QFY18 compared to 3.8% in
EBITDA margin (%) 11.1 12.3 13.2 205 bps 92 bps 4QFY17.
Ashok Leyland
Net sales 66,179 71,132 91,401 38.1 28.5
EBITDA 7,299 7,884 11,378 55.9 44.3 We expect revenues to increase by 38% yoy in 4QFY18 led by (1) 23% yoy growth in
volumes and (2) 12% increase in ASPs due to a better mix (increase in share of higher
EBIT 5,904 6,534 9,978 69.0 52.7
tonnage vehicles) and price increases taken by the company post implementation of BS-
PBT 5,885 6,578 10,058 70.9 52.9 IV norms.
Reported PAT 4,533 4,497 6,890 52.0 53.2
Extraordinaries (3,508) (2) — — —
Adjusted PAT 3,808 4,497 6,890 81.0 53.2 We expect EBITDA to grow 56% yoy led by a 140 bps yoy improvement in the EBITDA
EPS (Rs/share) 1.3 1.5 2.4 81.0 53.2 margin due to operating leverage benefits.
EBITDA margin (%) 11.0 11.1 12.4 141 bps 136 bps
Bajaj Auto
Net sales 48,976 63,693 66,091 34.9 3.8
EBITDA 9,063 12,315 12,672 39.8 2.9 Volumes increased by 32.7% yoy led by 118% yoy growth in the three-wheeler segment
and 25% yoy growth in two-wheeler export volumes offset by a 29% yoy decline in
EBIT 8,306 11,568 11,902 43.3 2.9
domestic motorcycle volumes. We expect revenues to rise by 35% yoy as ASPs will
PBT 11,239 13,833 14,899 32.6 7.7
increase by ~2.3% yoy due to a better mix and price increases post implementation of
Reported PAT 8,021 9,524 10,429 30.0 9.5 BS-IV norms.
Adjusted PAT 8,021 9,524 10,429 30.0 9.5
EPS (Rs/share) 27.7 32.9 36.0 30.0 9.5 We expect EBITDA to increase by 40% yoy led by strong revenue growth.
Balkrishna Industries
Net sales 10,389 11,613 12,142 16.9 4.6
EBITDA 3,054 3,520 3,881 27.1 10.3 We expect revenues to grow by 17% yoy led by (1) 13% yoy volume growth aided by
industry growth and market share gains and (2) 4% yoy increase in net realizations
EBIT 2,303 2,721 3,081 33.8 13.2
(flattish qoq) due to price increases and higher export realizations led by Euro
PBT 2,367 2,859 3,312 39.9 15.8 appreciation versus INR.
Reported PAT 1,375 1,895 2,219 61.4 17.1
We expect 165 bps sequential improvement in EBITDA margin (up 260 bps yoy) largely
Adjusted PAT 1,380 1,818 2,219 60.9 22.1
due to normalization of other expenses in this quarter (Rs200 mn one-off expenses in
EPS (Rs/share) 7.1 9.4 11.5 60.9 22.1
3QFY18).
Bharat Forge
Net sales 17,829 21,083 22,126 24.1 4.9
EBITDA 3,692 4,811 5,142 39.3 6.9 We expect consolidated revenues to increase by 24% yoy, which will be driven by 33%
yoy growth in the standalone business and 10% yoy growth in its European subsidiary.
EBIT 3,692 4,811 5,142 39.3 6.9
Revenue growth in the standalone business will be driven by (1) 41% yoy growth in
PBT 2,579 3,638 3,984 54.5 9.5
export revenues led by oil and gas and North America truck segment and (2) 17% yoy
Reported PAT 1,728 2,437 2,670 54.5 9.5 growth in domestic revenues led by strong growth in MHCVs.
Adjusted PAT 1,728 2,437 2,670 54.5 9.5 We expect the standalone EBITDA margin to increase by 170 bps yoy to 30.1% in
EPS (Rs/share) 3.7 5.2 5.7 54.5 9.5 4QFY18 led largely by operating leverage benefits. We build in 9% EBITDA margin in the
EBITDA margin (%) 20.7 22.8 23.2 253 bps 42 bps European business (flat qoq).

India Strategy

Change (%)
Ceat
Net sales 14,718 15,742 16,680 13.3 6.0
EBITDA 1,325 1,870 2,055 55.1 9.9 We expect consolidated revenues to increase by 13% yoy led by (1) 10% yoy volume
growth in the standalone business driven by pickup in volume growth in the replacement
EBIT 865 1,436 1,610 86.1 12.1
segment and continued strong growth in OEM demand, (2) 2% higher realizations on
PBT 689 1,230 1,410 104.7 14.6 yoy basis (flat qoq) aided by price increases, and (3) start of the specialty tyres plant.
Reported PAT 663 826 985 48.4 19.1
Extraordinaries (125) (10) — — — We expect EBITDA margin to increase by 330 bps yoy (up 40 bps qoq) largely due to
Adjusted PAT 751 833 985 31.2 18.1 gross margin expansion aided by a decline in rubber prices. We build in PBT loss of
EPS (Rs/share) 18.6 20.6 24.3 31.2 18.1 Rs140 mn (versus Rs87 mn yoy and Rs153 mn qoq) from subsidiaries (excluding China
EBITDA margin (%) 9.0 11.9 12.3 331 bps 44 bps JV) in our estimates largely due to initial losses in specialty tyres subsidiary.
Eicher Motors
Net sales 18,881 22,690 25,169 33.3 10.9
EBITDA 5,848 7,072 7,909 35.3 11.8 Royal Enfield volumes increased by 27% yoy in 4QFY18; we expect standalone revenues
EBIT 5,481 6,537 7,369 34.5 12.7 to grow by 33% yoy. We expect the company's EBITDA margin to improve by 60 bps
PBT 6,024 7,010 7,959 32.1 13.5 yoy due to scale benefits.
Reported PAT 4,594 5,205 6,134 33.5 17.9
Adjusted PAT 4,594 5,205 6,134 33.5 17.9 We expect consolidated net profit to increase by 34% yoy led by strong performance of
EPS (Rs/share) 168.8 191.2 225.4 33.5 17.9 both RE and VECV (driven by strong growth in domestic CV volumes).
Escorts
Net sales 10,223 12,050 14,122 38.1 17.2
EBITDA 744 1,450 1,708 129.7 17.8
We expect revenues to increase by 38% yoy in 4QFY18 led by 43% yoy increase in
EBIT 576 1,271 1,528 165.1 20.2
tractor revenues.
PBT 647 1,294 1,628 151.4 25.8
Reported PAT 591 920 1,107 87.2 20.3
Extraordinaries 147 1 — — —
We estimate EBITDA margin to improve by 480 bps yoy led by 160 bps yoy
Adjusted PAT 488 919 1,107 126.7 20.4
improvement in gross margin and 320 bps yoy increase due to operating leverage
EPS (Rs/share) 6.7 10.3 12.5 87.2 20.3
benefits.
Exide Industries
Net sales 19,757 22,765 24,633 24.7 8.2 We estimate revenues to increase by 25% led by (1) 20% yoy growth in automotive
EBITDA 2,618 2,826 3,181 21.5 12.6 segment driven by volume growth and price increase to pass on the impact of higher
EBIT 2,073 2,200 2,546 22.8 15.7 lead prices and (2) 30% yoy revenue growth in industrial segment aided by price
PBT 2,289 2,302 2,886 26.1 25.4 increases and strong order wins in the telecom segment (low-margin orders, in our
Reported PAT 1,648 1,543 1,962 19.1 27.2 view).
Extraordinaries — — — — — We expect EBITDA margin to decline by 35 bps yoy (up 50 bps qoq) as operating
Adjusted PAT 1,648 1,543 1,962 19.1 27.2 leverage benefits are more than offset by a decline in the gross margin. We build in
EPS (Rs/share) 1.9 1.8 2.3 19.1 27.2 other income of Rs350 mn in our estimates (Rs215 mn yoy and Rs110 mn qoq) due to
EBITDA margin (%) 13.3 12.4 12.9 -34 bps 49 bps potential dividend income from subsidiaries.
Hero Motocorp
Net sales 69,152 73,055 86,412 25.0 18.3
EBITDA 9,576 11,580 14,246 48.8 23.0
We expect revenues to increase by 25% yoy led by 23% yoy increase in volumes.
EBIT 8,223 10,197 12,856 56.3 26.1
PBT 9,390 11,282 14,240 51.7 26.2
Reported PAT 7,178 8,054 10,039 39.9 24.6
We expect EBITDA margin to improve by 260 bps yoy due to operating leverage benefits
Adjusted PAT 7,178 8,054 10,039 39.9 24.6
(+310 bps) partially offset by the increase in commodity costs (-50 bps yoy).
EPS (Rs/share) 35.9 40.3 50.3 39.9 24.6
Mahindra CIE Automotive
Net sales 15,212 16,184 16,935 11.3 4.6 We expect consolidated revenues to increase by 11% yoy led by (1) 12% yoy revenue
growth in its Europe business aided by INR depreciation versus Euro and (2) 10% yoy
EBITDA 1,946 2,317 2,352 20.8 1.5 growth in the India business (including Bill Forge).
We expect the consolidated EBITDA margin to improve by 110 bps yoy led by the
EBITDA margin (%) 12.8 14.3 13.9 109 bps -44 bps company's cost reduction efforts in both India and Europe. We expect 14% EBITDA
margin for the Europe business.
Mahindra & Mahindra
Net sales 106,121 114,915 129,000 21.6 12.3
EBITDA 12,368 16,926 18,301 48.0 8.1 Overall volumes increased 25% yoy; auto segment volumes rose 20% yoy, while tractor
EBIT 8,586 12,873 14,251 66.0 10.7 volumes grew 41% yoy. We estimate revenues to increase by 22% yoy.
PBT 10,853 13,450 15,801 45.6 17.5
Reported PAT 8,737 13,057 10,902 24.8 (16.5)
Extraordinaries 937 3,858 — — —
We estimate EBITDA margin to improve by 250 bps yoy due to significant improvement
Adjusted PAT 8,043 10,357 10,902 35.6 5.3
in both automotive and tractor businesses.
EPS (Rs/share) 7.1 9.1 9.6 35.6 5.3

Strategy India

Change (%)
Maruti Suzuki
Net sales 183,334 192,832 208,342 13.6 8.0
We expect revenues to increase by 14% yoy in 4QFY18 on the back of 12% yoy volume
EBITDA 25,607 30,378 32,558 27.1 7.2
growth and 4% yoy increase in realizations due to a better product mix (higher Baleno
EBIT 18,595 23,486 25,256 35.8 7.5
and Brezza volumes).
PBT 22,820 25,674 29,077 27.4 13.3
Reported PAT 17,090 17,990 20,354 19.1 13.1
We expect EBITDA to increase by 27% yoy in 4QFY18 led by strong revenue growth and
Adjusted PAT 17,090 17,990 20,354 19.1 13.1
operating leverage benefits.
EPS (Rs/share) 56.6 59.6 67.4 19.1 13.1
Motherson Sumi Systems
Net sales 112,839 143,979 155,539 37.8 8.0 We expect 13% yoy revenue growth for the standalone entity and 10% yoy growth in
EBITDA 12,405 12,595 14,489 16.8 15.0 Euro revenues of the SMRPBV business. Consolidated revenue growth will likely be
EBIT 9,698 8,657 10,489 8.2 21.2 higher at 38% yoy due to (1) 11% INR depreciation versus Euro and (2) addition of PKC
PBT 9,808 7,777 9,599 (2.1) 23.4 group in consolidated entity. Excluding PKC acquisition, consolidated revenues will likely
Reported PAT 4,748 3,645 4,828 1.7 32.4 increase by 18% yoy in 4QFY18.
Extraordinaries (974) (21) — — — We expect the consolidated EBITDA margin to decline by 170 bps yoy leading to 17%
Adjusted PAT 5,430 3,645 4,828 (11.1) 32.4 yoy growth in consolidated EBITDA. Profitability will be under pressure (on yoy basis) in
EPS (Rs/share) 2.7 1.8 2.4 (11.1) 32.4 both (1) India business due to increase in commodity prices and (2) SMRPBV business
EBITDA margin (%) 11.0 8.7 9.3 -168 bps 56 bps partly due to an increase in start-up costs.
MRF
Net sales 33,384 37,988 39,060 17.0 2.8
EBITDA 5,228 7,032 7,419 41.9 5.5 We expect revenues to grow by 17% yoy led by a pickup in volume growth across
segments (both OEM and replacement market) and higher realizations due to price
EBIT 3,606 5,254 5,629 56.1 7.1
increases taken by the company. As per our channel checks, there has been a strong
PBT 3,644 5,125 5,599 53.6 9.2 pickup in the company's two-wheeler replacement segment volumes.
Reported PAT 2,868 3,405 3,807 32.8 11.8
Adjusted PAT 2,868 3,405 3,807 32.8 11.8 We expect EBITDA margin to improve by 330 bps yoy (up 50 bps qoq) due to lower
EPS (Rs/share) 676.3 803.1 897.9 32.8 11.8 rubber prices and operating leverage benefits.
Schaeffler India
Net sales 4,612 5,061 5,166 12.0 2.1
EBITDA 885 1,013 1,001 13.1 (1.3) We expect revenues to grow by 12% yoy led largely by (1) double-digit growth in the
automotive OEM segment and exports, (2) pickup in demand in the after-market
EBIT 709 834 819 15.4 (1.9)
segment, and (3) steady demand in railways and industrial segment (excluding the wind
PBT 862 1,018 1,003 16.4 (1.5) energy segment).
Reported PAT 575 679 662 15.1 (2.6)
We expect EBITDA margin to be largely steady on yoy basis as RM cost pressures will
Adjusted PAT 575 679 662 15.1 (2.6)
likely be offset by a better mix (higher export mix and lower revenue from traded goods)
EPS (Rs/share) 34.6 40.9 39.8 15.1 (2.6)
and the company's cost reduction efforts.
SKF
Net sales 6,537 7,005 7,215 10.4 3.0 We expect revenues to grow by 10% yoy due to (1) double-digit growth in the auto
EBITDA 795 1,230 1,160 45.9 (5.7) OEM segment (particularly strong growth in CVs due to new order wins) and exports and
EBIT 680 1,118 1,040 53.0 (6.9) (2) strong pickup in demand in the after-market segment aided by a low base as well.
PBT 876 1,302 1,225 39.9 (5.9) However, the auto segment's strong performance will be partly offset by the steep
Reported PAT 579 862 809 39.7 (6.1) decline in the wind energy segment.
Extraordinaries — — — — — We expect EBITDA margin to increase by 390 bps yoy largely due to a better product
Adjusted PAT 579 862 809 39.7 (6.1) mix. We expect the share of traded revenues to decrease to around 37% in 4QFY18
EPS (Rs/share) 11.0 16.8 15.8 43.5 (6.1) from 45% in 4QFY17 due to (1) strong growth in auto segment (manufactured in-house)
EBITDA margin (%) 12.2 17.6 16.1 391 bps -149 bps and (2) steep decline in the wind energy segment (traded goods).
Suprajit Engineering
Net sales 3,714 3,663 4,320 16.3 17.9
We expect consolidated revenues to increase by 16% yoy led by 25% yoy growth in the
EBITDA 641 582 770 20.2 32.3
cable business driven by strong growth in two-wheeler volumes. We expect single-digit
EBIT 600 487 670 11.6 37.7
revenue growth (5-8% yoy) in Phoenix Lamps and Wescon Controls.
PBT 522 474 645 23.5 36.2
Reported PAT 431 282 432 0.3 53.0
Extraordinaries 5 — — — — We expect EBITDA margin to improve by 60 bps yoy (up 190 bps qoq) due to strong
profitability in the cable business aided by volume growth. We expect improvement in
Adjusted PAT 427 282 432 1.3 53.0
profitability of Phoenix Lamps as well (14% EBITDA margin in 4QFY18) led by potential
EPS (Rs/share) 3.0 2.0 — (100.0) (100.0) ramp-up of its new H7 line.
Tata Motors
Net sales 772,172 741,561 920,869 19.3 24.2
We expect standalone revenues to increase by 41% yoy due to 35% yoy volume
EBITDA 108,012 85,435 119,928 11.0 40.4
growth. We estimate the company's standalone EBITDA margin to improve by 60 bps
EBIT 61,309 29,727 61,928 1.0 108.3
qoq led by positive operating leverage in 4QFY18.
PBT 52,011 19,070 51,928 (0.2) 172.3
Reported PAT 42,959 11,986 43,469 1.2 262.7
Extraordinaries (356) 1,220 — — — JLR's UK P&L volumes will likely grow by 1% yoy. We expect reported EBITDA margin to
improve by 390 bps qoq to 14.3% due to positive operating leverage and reduction in
Adjusted PAT 43,208 11,132 43,469 0.6 290.5
forex hedge losses. We build in forex hedge loss of GBP213 mn in our estimates for
EPS (Rs/share) 12.7 3.3 12.8 0.6 290.5 4QFY18.
EBITDA margin (%) 14.0 11.5 13.0 -97 bps 150 bps

India Strategy

Change (%)
Timken
Net sales 2,605 2,786 3,100 19.0 11.3
EBITDA 376 207 498 32.3 140.1 We expect revenues to increase by 19% yoy due to a low base (revenues were down
EBIT 296 114 398 34.2 249.3 5% yoy in 4QFY17) and strong double-digit growth in exports and the MHCV segment.
PBT 338 136 425 25.8 211.7
Reported PAT 257 92 284 10.6 210.2
Extraordinaries — — — — — We expect EBITDA margin to improve by 160 bps yoy in 4QFY18 largely due to
operating leverage benefits. We have built in normalization of gross margin in our
Adjusted PAT 257 92 284 10.6 210.2
4QFY18 estimates as the company mentioned that it has taken price increases to pass
EPS (Rs/share) 3.8 1.3 4.2 10.6 210.2 on the impact of higher steel prices.
TVS Motor
Net sales 28,445 36,850 40,123 41.1 8.9
EBITDA 1,615 2,868 3,369 108.6 17.5 Volumes grew 32% yoy led by strong growth in scooter and three-wheeler volumes.
EBIT 841 2,044 2,529 200.8 23.7 Revenues will likely grow by 41% yoy in 4QFY18.
PBT 1,340 2,104 2,984 122.6 41.8
Reported PAT 1,268 1,544 2,148 69.5 39.2
We expect EBITDA margin to increase by 60 bps qoq driven by operating leverage
Adjusted PAT 1,268 1,544 2,148 69.5 39.2
benefits.
EPS (Rs/share) 2.7 3.2 4.5 69.5 39.2
WABCO India
Net sales 5,769 6,499 7,093 23.0 9.1
EBITDA 776 1,003 1,201 54.8 19.7 We expect revenues to increase by 23% yoy led by strong growth in MHCV production
EBIT 623 850 1,046 67.8 23.0 and pickup in exports.
PBT 727 913 1,115 53.2 22.1
Reported PAT 496 638 758 52.9 18.8
We expect EBITDA margin to improve by 350 bps yoy led by operating leverage benefits
Adjusted PAT 496 638 758 52.9 18.8
and one-off other expenses (related to bad debt provisioning) in 4QFY17.
EPS (Rs/share) 26.1 33.6 40.0 52.9 18.8
Banks/Financial Institutions
Axis Bank
Net interest income 47,286 47,315 49,021 3.7 3.6
NII growth (4% yoy) and revenue growth (7% yoy) will significantly lag loan growth
Pre-provision profit 43,748 38,538 45,968 5.1 19.3
(18% yoy) as high slippages and underlying yield pressure take a toll on NIMs (down 40
Fee income 24,230 22,460 26,353 8.8 17.3
bps yoy and stable qoq at 3.4%).
Treasury income (net) 1,660 2,090 4,041 143.4 93.3
Loan-loss provisions 20,830 27,540 42,838 105.7 55.5 We expect slippages of Rs55 bn (versus Rs44 bn in 3QFY18) as new guidelines take
Adjusted PAT 12,251 7,264 400 (96.7) (94.5) effect, impacting the unrecognized stressed loans (SDR, S4A, etc.). Elevated credit costs
EPS (Rs/share) 5.2 3.1 0.2 (96.7) (94.5) will help improve coverage ratio (53% at 3QFY18).
Bajaj Finance
Net interest income 16,806 23,696 22,535 34.1 (4.9) We expect loan book growth to remain strong at 35% yoy similar to 3QFY18 largely
Loan-loss provisions 3,811 2,468 4,708 23.5 90.7 driven by consumer loans; momentum in business loans will remain weak.
Adjusted PAT 4,492 7,667 6,054 34.8 (21.0)
Seasonal trends suggest qoq compression in NIM to 11.1% (down 128 bps qoq).
EPS (Rs/share) 8.2 14.0 11.1 34.8 (21.0)
Bank of Baroda
We expect 28% yoy NII growth on the back of improving loan growth (up 10% yoy).
Pre-provision profit 30,202 36,501 34,220 13.3 (6.2)
Calculated NIM is expected to be stable qoq at 3.2% and up 40 bps yoy. Treasury gains
Fee income 6,640 7,710 6,115 (7.9) (20.7)
to be sharply lower qoq due to M2M losses.
Treasury income (net) 7,600 3,360 2,290 (69.9) (31.8)
Loan-loss provisions 24,250 31,553 31,017 27.9 (1.7)
We expect fresh slippages at Rs87 bn on the back of new RBI guidelines leading to
Adjusted PAT 1,547 1,118 1,541 (0.4) 37.9
higher provisions. Coverage ratio at ~65% levels could drop qoq.
EPS (Rs/share) 3.3 2.4 3.3 (0.4) 37.9
Bank of India
Net interest income 34,686 25,012 28,942 (16.6) 15.7
Higher NPLs should result in a 17% yoy drop in NII, while loan growth will remain muted
Pre-provision profit 31,275 13,543 16,167 (48.3) 19.4
at ~5% yoy. Sequentially NIM should improve ~30 bps to 2.2% due to lower slippages
Fee income 3,440 3,340 5,000 45.3 49.7
qoq (last quarter had one-off due to SBLC slippages).
Treasury income (net) 5,810 (8,250) 4,560 (21.5) NM
Loan-loss provisions 44,835 43,731 27,383 (38.9) (37.4) We expect slippages of Rs85 bn (versus Rs185 bn in 3QFY18, driven by one-offs), while
Adjusted PAT (10,455) (23,412) (7,542) (27.9) (67.8) upgrades of Rs113 bn (versus Rs33 bn in 3QFY18) will result in ~200 bps qoq decline in
EPS (Rs/share) (9.9) (19.8) (5.6) (43.2) (71.5) GNPL to ~15%. Bank will also benefit from reversal in investment provisions.
Bharat Financial Inclusion
Improving business momentum will drive 49% yoy loan growth (34% yoy in 3QFY18).
Loan-loss provisions 3,350 86 158 (95.3) 83.3
Adjusted PAT (2,355) 1,623 1,950 NM 20.2 We expect moderate reduction in the cost-to-income ratio at 50% from 52% in 9MFY18
EPS (Rs/share) (17.1) 11.7 14.1 NM 21.0 due to operating leverage.

Strategy India

Change (%)
Canara Bank
Net interest income 27,082 36,791 34,672 28.0 (5.8)
We expect 11% yoy loan growth and ~50 bps yoy NIM improvement (down 30 bps
Pre-provision profit 29,729 28,314 23,602 (20.6) (16.6)
qoq), leading to 28% yoy loan growth. PPOP to decline ~20% yoy due to lower treasury
Fee income 3,630 2,770 3,295 (9.2) 18.9
gains (other income down ~40% yoy) and operating expense growth (up 16% yoy).
Treasury income (net) 10,800 (4,680) 4,700 (56.5) NM
Loan-loss provisions 26,351 18,000 31,503 19.6 75.0 We expect slippages of Rs56 bn (versus Rs26 bn in 3QFY18), driven by the change in
Adjusted PAT 2,142 1,257 (5,251) (345.2) (517.6) RBI's guidelines. In the likely absence of meaningful recoveries, we expect ~50 bps qoq
EPS (Rs/share) 3.6 2.1 (7.2) (299.7) (440.1) rise in GNPLs to 10.9%.
Cholamandalam
Net interest income 6,657 7,930 8,483 27.4 7.0 We expect steady growth in the vehicle finance business on the back of strong CV
volumes; business loan growth will remain muted. We forecast overall loan growth of
Loan-loss provisions 529 902 749 41.8 (16.9)
20% yoy to Rs411 bn.
Adjusted PAT 2,196 2,492 2,781 26.7 11.6 We expect 50 bps NIM compression to 8.5% on the back of lower funding costs (down
EPS (Rs/share) 14.2 16.1 17.9 26.7 11.6 8 bps qoq and 55 bps yoy to 8.6%).
City Union Bank
Recovery in business momentum in key states will lead to strong loan growth of 15%
yoy. NII growth will be similar to loan growth at 17.7% yoy but NIM can be under a bit
Fee income 582 612 673 15.7 10.0
of pressure qoq (it is at peak levels currently of 3.99% and will likely drop 10 bps qoq).
Treasury income (net) 357 284 185 (48.1) (34.8)
Loan-loss provisions 450 695 617 37.2 (11.2)
We expect fresh impairments to reduce leading to lower provisions for bad loans;
Adjusted PAT 1,289 1,547 1,550 20.3 0.2
slippages are expected to drop 20 bps qoq to 1.9%.
EPS (Rs/share) 2.1 2.3 2.3 9.0 0.2
DCB Bank
Net interest income 2,203 2,505 2,601 18.1 3.8 We expect revenue growth to slow down due to NIM pressure (calculated NIM is
Pre-provision profit 1,153 1,225 1,328 15.2 8.4 expected to drop 6 bps qoq) as yield on advances has started to drop (calculated yield
Fee income 586 658 693 18.2 5.2 on advances was down 13 bps qoq in 3QFY18 and will fall another 28 bps qoq in the
Treasury income (net) 41 55 51 25.1 (6.7) current quarter). Performance in LAP would be the key monitorable given intense
Loan-loss provisions 285 308 379 32.7 22.9 competition and pricing pressure.
Adjusted PAT 529 570 622 17.7 9.1 We expect modest PAT growth due to high provisions for the LAP portfolio (NPLs in the
EPS (Rs/share) 1.9 1.9 2.0 7.8 9.1 mortgage business have increased by 60 bps over 3QFY17-3QFY18).
Equitas Holdings
Net interest income 2,209 2,349 2,465 11.6 4.9 AUM growth will be modest as MFI portfolio continues to shrink (MFI portfolio will be
Pre-provision profit 520 416 720 38.5 72.9 lower 30% yoy at Rs23 bn in 4QFY18 after 30.3% and 26.8% drop in 3QFY18 and
Loan-loss provisions 410 869 320 (22.1) (63.2) 2QFY18 respectively).
Adjusted PAT 69 (300) 272 293.0 NM Improvement in cost of funds by 255 bps yoy to 7.6% aided by strong growth in
EPS (Rs/share) 0.2 (0.9) 0.8 293.0 NM deposits franchise (CASA will grow 1.4X yoy).
Federal Bank
Net interest income 8,424 9,504 9,815 16.5 3.3 Loan growth is expected to be robust at 22% yoy (similar to previous quarters at 23%
yoy in 3QFY18 and 26% yoy in 2QFY18) driven by strong momentum in the retail
business (retail loans for the sector have grown in the range of 18-21% yoy in the last
Treasury income (net) 310 100 (1,275) (511.3) (1,375.0) few months).
Loan-loss provisions 1,090 1,400 829 (23.9) (40.8) We expect slippages (2% of loans) at normalized levels but provisions for security
Adjusted PAT 2,566 2,604 2,629 2.4 0.9 receipts will be a key monitorable. Cost growth at 7.3% will be lower than revenue
EPS (Rs/share) 3.0 2.7 2.7 (10.3) 0.4 growth at 10.8% yoy.
HDFC
Net interest income 27,611 28,490 10,405 (62.3) (63.5)
We expect strong momentum in retail business to drive 18% yoy loan growth.
Adjusted PAT 20,442 56,702 26,564 29.9 (53.2) Seasonal trend in collections and recent capital issuance will boost NIM by 30 bps qoq
EPS (Rs/share) 12.9 35.5 16.0 24.1 (55.0) to 3.54%.
HDFC Bank
We expect revenue growth to slowdown to <20% yoy from ~25% yoy in the last quarter
due to pressure on NIM. Fee income growth likely to be around ~18% yoy.
Fee income 25,230 28,721 29,940 18.7 4.2
Treasury income (net) 1,804 2,594 2,533 40.4 (2.4)
We expect loan impairments to be flat qoq. The extent of revenue slowdown will be the
Loan-loss provisions 12,582 13,514 14,671 16.6 8.6
key monitorable. We expect 20% yoy loan growth and marginal qoq reduction in NIM to
Adjusted PAT 39,901 46,426 47,937 20.1 3.3
3.6%.
EPS (Rs/share) 15.6 17.9 18.5 18.9 3.3
ICICI Bank
We expect muted earnings led by higher provisions for bad loans (based on the new RBI
circular). We expect 3% yoy NII decline with 12% yoy loan growth, reflecting the
Fee income 24,460 26,390 28,869 18.0 9.4
pressure on NIMs (down ~10 bps yoy) due to high slippages.
Treasury income (net) 5,030 660 31,830 532.8 4,722.7
Loan-loss provisions 28,982 35,696 75,137 159.3 110.5 We expect high slippages at >Rs100 bn (versus Rs44 bn in 3QFY18) to factor the new
Adjusted PAT 20,246 16,502 955 (95.3) (94.2) RBI circular and a meaningful reduction in watchlist as well. All gains from I-Sec stake
EPS (Rs/share) 3.5 2.6 0.1 (95.7) (94.2) sale (~Rs31 bn) would be used to improve coverage (48% at 3QFY18).

India Strategy

Change (%)
IDFC Bank
We expect weak momentum in wholesale business to moderate loan growth to 10%
yoy from 12% yoy in 3QFY18.
Loan-loss provisions 48 (20) 171 255.7 NM
Tax 795 600 1,456 83.2 142.7
Adjusted PAT 1,759 1,461 1,976 12.3 35.2 Partial reversal of 3QFY18 treasury losses (Rs180 mn) will boost earnings.
EPS (Rs/share) 0.5 0.4 0.6 12.3 35.2
IIFL Holdings
Net sales 14,044 16,868 17,385 23.8 3.1 30% yoy and 8% qoq growth in cash market volumes will drive capital market-related
Adjusted PAT 1,865 2,358 2,598 39.3 10.2 income.
Slowdown in loan against shares will lead to moderation in overall loan growth to 31%
EPS (Rs/share) 5.9 7.4 8.2 39.3 10.2
yoy from 35% yoy in 3QFY18.
IndusInd Bank
We expect strong loan growth at ~20% yoy led by steady growth in the retail business
Pre-provision profit 15,722 16,647 16,365 4.1 (1.7) with vehicle finance business showing positive momentum amidst a strong CV cycle.
Fee income 9,963 10,768 11,227 12.7 4.3 NIM is expected to decline ~10 bps qoq/yoy, in line with recent trends, reflecting
pressure on loan yields.
Treasury income (net) 2,150 1,100 420 (80.5) (61.8)
Loan-loss provisions 2,560 1,870 2,530 (1.2) 35.3 We expect limited asset quality stress but divergence, if any, could be reported this
Adjusted PAT 7,516 9,362 9,046 20.4 (3.4) quarter. The company had base quarter impact of one-off provisions against a cement
EPS (Rs/share) 12.6 15.6 15.1 20.4 (3.1) account. We expect GNPL of 1.3%, up ~10 bps qoq and up 15% qoq on absolute basis.
J&K Bank
Net interest income 6,550 7,802 8,122 24.0 4.1 Loan growth within J&K will be a key monitorable where the performance has been
Pre-provision profit 2,764 3,827 4,597 66.3 20.1 relatively weak in the last few quarters (CQGR of 2.5% since 3QFY16 compared to 4%
Fee income 451 432 493 9.1 13.9 outside J&K). Overall loan growth will be better than industry trends but lower on a qoq
Treasury income (net) (13) (81) (19) 44.5 (77.2) basis.
Loan-loss provisions 6,271 2,160 2,596 (58.6) 20.2 We expect fresh impairment ratios to remain lower (slippages at 1.9% are lower than 4-
Adjusted PAT (5,543) 725 855 NM 18.0 6% seen in 4QFY17-2QFY18) and gross NPLs can decline (down 50 bps qoq to 9.6%)
EPS (Rs/share) (10.6) 1.3 1.6 NM 26.0 with NPL sell down. Bank is well provided for the top NPLs.
Karur Vysya Bank
Pre-provision profit 5,071 4,212 4,178 (17.6) (0.8) We expect a sharp drop in earnings (PAT down 78% yoy) as provision for bad loans is
Fee income 1,281 1,991 1,909 49.0 (4.2) likely to be high (credit cost at 2.8%; up 80 bps yoy).
Treasury income (net) 590 70 190 (67.8) 171.4
Loan-loss provisions 2,040 3,060 3,232 58.4 5.6
We expect slippages to remain high at 6.4% led by stress in corporate loans (part of the
Adjusted PAT 2,176 715 473 (78.3) (33.8)
watchlist, 1.5% of loans are unrecognized).
EPS (Rs/share) 17.9 5.9 3.9 (78.3) (33.8)
LIC Housing Finance
We expect strong momentum in retail home loans to drive 16% yoy overall loan growth.
Loan-loss provisions 893 484 236 (73.6) (51.3)
We expect collections to improve in line with seasonal trends; GNPL will decline 20 bps
Adjusted PAT 5,292 4,911 5,466 3.3 11.3
qoq. Lower reversals will drive NIM expansion by 20 bps qoq to 2.5%.
EPS (Rs/share) 10.5 9.7 10.8 3.3 11.3
Mahindra & Mahindra Financial
We expect loan growth to remain moderate (15% yoy); similar to 3QFY18.
Loan-loss provisions 3,614 1,989 1,906 (47.3) (4.2)
Seasonally strong collections will lead to lower provisions (down 47% yoy) and 4QFY18
Adjusted PAT 2,341 3,420 5,066 116.4 48.1
NIM will expand by 250 bps yoy.
EPS (Rs/share) 4.1 6.1 9.0 116.4 48.1
Muthoot Finance
Net interest income 11,535 10,538 10,028 (13.1) (4.8)
Pre-provision profit 8,323 7,767 7,183 (13.7) (7.5) Stable gold prices will drive 3% qoq loan growth.
Loan-loss provisions 2,430 565 931 (61.7) 64.7
Adjusted PAT 3,217 4,637 3,740 16.3 (19.3)
Normalization of NIM to 14% from 17% in 4QFY18 will lead to lower NII.
EPS (Rs/share) 8.1 11.6 9.4 16.3 (19.3)
PFC
A low base (on account of large slippages and reversals in 4QFY17) will lead to high NII
growth (up 14% qoq).
Loan-loss provisions 44,990 (2,190) 2,101 (95.3) NM
Adjusted PAT (34,110) 16,040 16,331 NM 1.8 We expect loan book to be stable qoq leading to 7% yoy loan growth, down from 10%
EPS (Rs/share) (12.9) 6.1 6.2 NM 1.8 yoy in 3QFY18.
PNB Housing Finance
Pre-provision profit 3,082 3,899 4,575 48.4 17.3 We expect strong momentum across business lines to drive 55% yoy loan growth (52%
Loan-loss provisions 670 561 878 31.0 56.5 yoy in 3QFY18).
Tax 892 1,164 1,309 46.7 12.5
Adjusted PAT 1,520 2,175 2,388 57.2 9.8
We expect stable NIM (including fees) qoq and yoy at 3.9%.
EPS (Rs/share) 9.2 13.1 14.4 57.2 9.8

Strategy India

Change (%)
Punjab National Bank
Net interest income 36,835 39,887 40,924 11.1 2.6 We expect large losses in 4QFY18 due to a recent scam in the jewelry sector involving
Pre-provision profit 62,318 42,452 37,807 (39.3) (10.9) PNB (exposure of Rs140 bn). We assume provision of Rs65 against Rs140 bn exposure
Fee income 9,660 8,620 11,843 22.6 37.4 for FY2018 and the balance for FY2019. Overall provisions are expected to be Rs77 bn
Treasury income (net) 7,130 4,620 6,023 (15.5) 30.4 (versus Rs32 bn in 3QFY18).
Loan-loss provisions 49,890 31,554 102,762 106.0 225.7 Operating cost growth (up 5X yoy) is optically elevated due to one-of staff expense
Adjusted PAT 2,619 2,301 (45,457) (1,835.7) (2,075.5) benefits in the base quarter. Adjusted PPOP is expected to decline 10% yoy. We expect
EPS (Rs/share) 1.2 0.9 (18.7) (1,622.7) (2,075.5) loan growth of 5% yoy and NIM to remain stable qoq at 2.5%.
RBL Bank
Net interest income 3,522 4,673 4,843 37.5 3.6 Solid NII growth (38% yoy) will reflect strong loan growth (33% yoy) driven by robust
Pre-provision profit 2,818 3,334 3,290 16.8 (1.3) traction in retail assets; expect significant pickup in the cards business.
Treasury income (net) 316 282 (2) (100.7) (100.7)
High operating expense growth (~40% yoy) will lead to lower PPOP growth compared to
Loan-loss provisions 430 680 705 63.9 3.6
revenue growth (30% yoy). We expect PAT growth (22% yoy) to be slower than loan
Adjusted PAT 1,301 1,653 1,583 21.7 (4.2)
growth due to balance provisions in the MFI portfolio (MFI NPL of 5% as of 3QFY18).
EPS (Rs/share) 3.5 4.4 4.2 21.7 (4.2)
Rural Electrification Corp.
We expect stable loan growth (11% yoy) and about 100 bps yoy compression in NIM to
3.85% to put pressure on NII.
Loan-loss provisions 6,162 2,053 3,916 (36.4) 90.7
Adjusted PAT 13,192 12,965 12,898 (2.2) (0.5)
The extent of provisions will remain the key sensitivity to our earnings.
EPS (Rs/share) 6.7 6.6 6.5 (2.2) (0.5)
Shriram City Union Finance
Net interest income 7,134 9,157 7,939 11.3 (13.3) We expect GNPL ratio to increase to 9% from 6.7% in 3QFY18 on account of NPL
Loan-loss provisions 4,118 2,046 3,778 (8.3) 84.7 transition to 90 dpd from 120 dpd.
Adjusted PAT 120 2,255 872 624.9 (61.3) The increase in GNPL will drive higher provisions and interest reversals; strong (20% yoy)
EPS (Rs/share) 1.8 34.2 13.2 621.9 (61.5) loan growth will support earnings.
Shriram Transport
We expect 35% yoy disbursement growth largely from the used CV segment to drive
20% yoy loan growth (18% yoy in 3QFY18).
Loan-loss provisions 9,114 5,854 5,908 (35.2) 0.9
Adjusted PAT 1,496 4,956 4,938 230.0 (0.4) Rise in funding costs and reduction in yields (down 10 bps qoq to 14%) will lead to 25
EPS (Rs/share) 6.6 21.8 21.8 230.0 (0.4) bps yoy compression in NIM.
State Bank of India
Net interest income 210,660 186,875 197,615 (6.2) 5.7 Loan growth is expected to be around 9% yoy but high slippages and NIM pressure lead
Pre-provision profit 173,100 117,546 137,167 (20.8) 16.7 to 6% NII decline. Weak other income growth (down 17% yoy) and stable operating
Fee income 74,340 49,790 59,535 (19.9) 19.6 expense growth lead to ~20% yoy decline in PPOP.
Treasury income (net) 19,970 10,260 28,136 40.9 174.2
Slippages to remain high (Rs238 bn versus Rs268 bn in 3QFY18) as new RBI guidelines
Loan-loss provisions 193,230 177,600 155,982 (19.3) (12.2)
take effect. Without meaningful upgrades/recoveries, GNPL is expected to increase 60
Adjusted PAT (34,420) (24,164) (12,496) (63.7) (48.3)
bps qoq to 11%. SBI is well placed with ~50% PCR (calculated) as of 3QFY18.
EPS (Rs/share) 3.5 (2.8) (1.4) (141.0) (48.3)
Ujjivan Financial Services
Net interest income 1,371 2,167 2,365 72.5 9.1 We expect Ujjivan to report strong PAT growth at 43% yoy on a low base. AUM growth
is expected to be around 18% yoy driven by strong performance in MFI and housing
Loan-loss provisions 72 287 405 464.2 41.0 space.
Adjusted PAT 194 293 277 43.0 (5.6) Cost ratios will be high as its transition to a bank continues (cost-to-income income at
68% will be similar to 3QFY18 ratio at 69%), similar to the trends in the previous
EPS (Rs/share) 1.6 2.5 2.3 43.0 (5.6) quarters.
Union Bank
Net interest income 23,870 25,483 24,083 0.9 (5.5)
Muted NII growth is driven by ~15 bps qoq and yoy decline in NIM to 2.2%, even with
7% yoy loan growth. Weak treasury profits and high expense growth (13% yoy) will lead
Fee income 6,410 5,970 6,091 (5.0) 2.0
to ~30% yoy decline in PPOP.
Treasury income (net) (220) (6,940) 3,220 NM NM
Loan-loss provisions 15,930 25,200 43,320 171.9 71.9 We expect slippages to increase 70% qoq to Rs73 bn from Rs42 bn given the SMA-2
Adjusted PAT 1,089 (12,499) (13,093) (1,302.6) 4.8 book, which would be impacted by the new RBI circular. GNPL to increase by ~100 bps
EPS (Rs/share) 1.6 (14.6) (18.0) (1,238.0) 23.4 to 14%. Provision coverage (calculated) was 50% as of 3QFY18.
YES Bank
Loan growth (30% yoy) will show similar trends as previous quarters with strong growth
on the back of increase in retail assets. Lower other income will hurt revenue growth
Fee income 11,724 14,023 10,724 (8.5) (23.5)
(9% yoy) while expense growth (12% yoy) will lead to much lower PPOP growth.
Treasury income (net) 850 200 410 (51.8) 105.0
Loan-loss provisions 2,177 4,213 5,711 162.3 35.5 Improvement in provision coverage ratio by 100 bps qoq to 48% will lead to high
Adjusted PAT 9,141 10,769 8,028 (12.2) (25.5) provisions, pulling down PAT growth. The impact of the recent RBI guideline is unlikely to
EPS (Rs/share) 20.0 23.6 17.6 (12.2) (25.5) be material but we expect GNPL to inch up to 1.9%.

India Strategy

Change (%)
Cement
ACC
Net sales 30,997 34,171 35,202 13.6 3.0
EBITDA 3,418 3,656 3,447 0.8 (5.7) We factor 6% yoy increase in volumes to 7 mn tons (+1% qoq) on the back of
EBIT 1,768 2,078 1,816 2.8 (12.6) expanded capacities (Jamul & Sindri plant ramp-up).
PBT 2,617 2,975 2,677 2.3 (10.0)
Reported PAT 2,115 2,045 1,874 (11.4) (8.4)
Extraordinaries — — — — — We estimate cement realizations to remain flat qoq at Rs4,680/ton (+5% yoy) in the
Adjusted PAT 2,115 2,045 1,874 (11.4) (8.4) absence of price increases across key markets. We estimate EBITDA/ton to improve by
EPS (Rs/share) 11.2 10.9 10.0 (11.4) (8.4) 4% qoq to Rs494 (+2% yoy).
EBITDA margin (%) 11.0 10.7 9.8 -124 bps -91 bps
Ambuja Cements
Net sales 25,334 26,796 29,222 15.3 9.1
EBITDA 3,651 5,076 4,665 27.8 (8.1) We expect volumes to grow 6% yoy to 6.4 mn tons (+9% qoq) on the back of a
EBIT 2,191 3,649 3,190 45.6 (12.6) favorable base.
PBT 3,124 3,912 4,373 40.0 11.8
Reported PAT 2,465 3,384 3,061 24.2 (9.5)
Extraordinaries — 572 — — (100.0)
We expect realizations to remain flat qoq at Rs4,565/ton (+8% yoy). We estimate
Adjusted PAT 2,465 2,812 3,061 24.2 8.9
EBITDA/ton to decline by 16% qoq to Rs729 (+20% yoy) due to increase in fuel costs.
EPS (Rs/share) 1.2 1.4 1.5 24.2 8.9
Dalmia Bharat
Net sales 21,850 20,905 25,758 17.9 23.2
We expect volumes to grow 11% yoy to 5 mn tons (+22% qoq) led by (1) strong volume
EBITDA 5,517 4,546 5,642 2.3 24.1
growth in East markets (+18% yoy to 1.9 mn tons at OCL India) and (2) 7% yoy growth
EBIT 4,008 2,770 3,848 (4.0) 38.9
in South to 3.1 mn tons.
PBT 2,724 1,858 2,695 (1.1) 45.0
Reported PAT 1,841 1,181 1,591 (13.5) 34.7
Extraordinaries — — — — — We expect blended realizations to increase by 1% qoq to Rs5,100/ton (+6% yoy) led by
Adjusted PAT 1,841 1,181 1,591 (13.5) 34.7 marginal increases in South & East markets. We estimate EBITDA/ton to decline by 13%
EPS (Rs/share) 20.7 13.3 17.9 (13.5) 34.7 yoy to Rs1,065/ton (+3% qoq) due to increase in fuel costs.
Grasim Industries
Net sales 28,761 44,283 44,536 54.8 0.6
EBITDA 5,254 8,735 9,185 74.8 5.1 VSF continues to operate at near-capacity utilization resulting in flat volumes. However,
EBIT 4,121 7,077 7,536 82.8 6.5 we expect healthy growth in volumes (+17% yoy) for the chemical segment.
PBT 4,343 7,245 7,937 82.8 9.5
Reported PAT 3,155 4,739 5,210 65.1 9.9
We expect VSF realization to improve 13% yoy and chemical segment realization by 7%
Adjusted PAT 3,155 4,739 5,210 65.1 9.9
yoy led by higher caustic soda prices.
EPS (Rs/share) 4.8 7.2 7.9 65.1 9.9
India Cements
Net sales 13,436 12,131 14,381 7.0 18.5
EBITDA 1,900 1,673 2,103 10.7 25.7 We model 7% yoy growth in volumes to 3.1 mn tons; the stay on the sand mining ban
EBIT 1,260 1,039 1,472 16.8 41.7 in 4QFY18 will likely aid volumes in Tamil Nadu.
PBT 458 152 590 28.9 287.0
Reported PAT 343 152 412 20.3 170.5
We expect EBITDA/ton to improve to Rs676 (Rs614 in 3QFY18) due to improved prices
Adjusted PAT 343 152 412 20.3 170.5
in the South, although offset by higher fuel cost.
EPS (Rs/share) 1.1 0.5 1.3 20.3 170.5
J K Cement
Net sales 10,189 11,261 11,924 17.0 5.9 We expect grey cement volume to grow by 15% yoy to 2.1 mn tons (+6% qoq) and
EBITDA 1,814 1,702 1,825 0.6 7.2 white cement/wall putty by 13% yoy to 0.33 mn tons (+10% qoq). The strong volume
EBIT 1,362 1,252 1,370 0.6 9.5 growth reflects a low base of 4QFY17 (-2% yoy in 4QFY17), impacted by
PBT 1,261 923 1,027 (18.6) 11.2 demonetization.
Reported PAT 914 729 770 (15.7) 5.6
Extraordinaries (89) (1) — — — We expect marginal sequential decline in grey cement realizations to Rs3,810/ton (+2%
yoy) due to price weakness in North markets. We estimate grey cement EBITDA/ton at
Adjusted PAT 914 729 770 (15.7) 5.6
Rs394 (-41% yoy)---the yoy decline largely reflects muted realizations and increase in
EPS (Rs/share) 13.1 10.4 11.0 (15.7) 5.6 costs, especially for fuel and freight.
JK Lakshmi Cement
Net sales 8,067 8,374 10,314 27.9 23.2
EBITDA 716 943 1,204 68.3 27.7 We expect cement volumes to grow by 14% yoy to 2.6 mn tons (+22% qoq) on the
EBIT 259 495 754 191.4 52.2 back of a favorable base and capacity ramp-up in East.
PBT 55 127 390 603.9 206.6
Reported PAT 208 86 265 27.2 208.7 We expect flat sequential realizations at Rs4,010/ton (+12% yoy) as pricing weakness in
Extraordinaries — — — — — North (-Rs3/bag qoq) is offset by improvement in East (+Rs6/bag qoq). We estimate
Adjusted PAT 208 86 265 27.2 208.7 EBITDA/ton at Rs468 (+4% qoq, +48% yoy)--sequential improvement is despite the
EPS (Rs/share) 1.8 0.7 2.3 27.2 208.7 increase in fuel costs and reflects operating leverage gains on the back of strong 4Q
EBITDA margin (%) 8.9 11.3 11.7 280 bps 41 bps volumes.

Strategy India

Change (%)
Orient Cement
Net sales 5,967 5,115 7,019 17.6 37.2
EBITDA 755 391 888 17.6 127.1 We expect cement volumes to grow by 8% yoy to 1.87 mn tons (+37% qoq) aided by
EBIT 450 72 569 26.4 692.1 the company's sales push to distant markets beyond Maharashtra and Southern states.
PBT 148 (248) 280 89.0 NM
Reported PAT 165 (177) 190 15.2 NM
We expect realizations to remain flat qoq at Rs3,750/ton (+3% yoy) due to subdued
prices in Maharashtra and Southern states. We estimate EBITDA/ton to decline to Rs475
Adjusted PAT 165 (177) 190 15.2 NM
(+9% yoy, +66% qoq)--the sharp sequential jump is on the back of operating leverage
EPS (Rs/share) 0.8 (0.9) 0.9 15.2 NM gains led by seasonally strong 4Q volumes.
Shree Cement
Net sales 23,803 22,962 27,838 17.0 21.2
EBITDA 5,112 5,696 7,046 37.9 23.7 We expect 8% yoy growth in volumes to 6.4 mn tons (+21% qoq) on the back of a
EBIT 2,003 3,596 4,712 135.2 31.0 favorable base and ramp-up of capacities in the East.
PBT 3,199 4,262 5,382 68.3 26.3
Reported PAT 3,045 3,333 4,117 35.2 23.5
Extraordinaries — — — — — We expect (1) realizations to improve marginally to Rs4,125/ton (+9% yoy) due to higher
Adjusted PAT 3,045 3,333 4,117 35.2 23.5 prices in East region and (2) costs to rise due to higher dependence on pet coke. We
EPS (Rs/share) 87.4 95.7 118.2 35.2 23.5 estimate EBITDA/ton to increase by 3% qoq to Rs1,100 (+27% yoy).
UltraTech Cement
Net sales 65,953 75,899 83,979 27.3 10.6
We model 24% yoy growth in volumes to 16.5 mn tons (+9% qoq) on account of
EBITDA 12,782 12,691 16,642 30.2 31.1
contribution from acquired capacities from Jaiprakash Associates as well as a favorable
EBIT 9,425 7,947 11,873 26.0 49.4
base.
PBT 10,297 6,031 9,957 (3.3) 65.1
Reported PAT 6,883 4,215 6,762 (1.8) 60.4
Extraordinaries (137) — — — — We expect realizations to improve by 1% qoq to Rs5,090/ton (+3% yoy) due to modest
improvement in cement prices in the South. We estimate EBITDA/ton to improve by 20%
Adjusted PAT 7,020 4,215 6,762 (3.7) 60.4
qoq to Rs1,009 (-3% yoy) on account of better utilization of capacities acquired from
EPS (Rs/share) 25.6 15.4 24.7 (3.7) 60.4 Jaiprakash Associates.
Consumer Products
Asian Paints
Net sales 39,084 42,605 44,645 14.2 4.8
We model about 14.4% domestic sales growth aided by 8% volume growth and 6%
EBITDA 7,078 8,912 8,962 26.6 0.6
price-led growth (aided by price hikes in 1QFY18 and 4QFY18). Our volume growth
EBIT 6,252 8,016 8,039 28.6 0.3
assumption translates into a 2-year CAGR of around 9%.
PBT 6,865 8,420 8,587 25.1 2.0
Reported PAT 4,622 5,546 5,507 19.1 (0.7)
Extraordinaries 35 — — — —
We expect EBITDA margin to expand about 200 bps yoy, despite 140 bps contraction in
Adjusted PAT 4,587 5,546 5,507 20.1 (0.7)
GM, aided by tight cost control and higher operating leverage.
EPS (Rs/share) 4.8 5.8 5.7 20.1 (0.7)
Bajaj Corp.
Net sales 2,045 2,081 2,242 9.6 7.7
EBITDA 662 678 722 9.1 6.5 We expect ADHO volumes to grow 6% yoy; this translates into flattish 2-year CAGR, in
EBIT 648 659 702 8.4 6.5 line with recent trends.
PBT 669 701 765 14.3 9.0
Reported PAT 527 552 601 14.1 8.9
Sustained investments in enhancing sales and R&D capabilities to prevent flow-through
Adjusted PAT 527 552 601 14.1 8.9
of GM expansion to the EBITDA margin line.
EPS (Rs/share) 3.6 3.7 4.1 14.1 8.9
Britannia Industries
Net sales 22,444 25,675 25,822 15.1 0.6
Our operating revenue estimate bakes in (1) 13% volume growth in the biscuits segment
EBITDA 3,081 3,984 4,151 34.7 4.2
and (2) sharp jump in other operating income as we bake in VAT refunds (not booked in
EBIT 2,759 3,655 3,804 37.9 4.1
2Q/3QFY18 pending clarity under GST).
PBT 3,081 3,989 4,183 35.8 4.9
Reported PAT 2,109 2,636 2,768 31.3 5.0
We expect EBITDA margin to expand 235 bps yoy aided by 120 bps expansion in GM
Adjusted PAT 2,109 2,636 2,768 31.3 5.0
and operating leverage (off a low base). Agri commodity prices are now favorable.
EPS (Rs/share) 17.6 22.0 23.1 31.3 5.0
Coffee Day Enterprises
Net sales 8,937 9,653 10,509 17.6 8.9
EBITDA 1,512 1,557 1,732 14.5 11.2 Our revenue growth estimate bakes in (1) 23 net café additions qoq, (2) 10% growth in
EBIT 922 902 1,045 13.3 15.8 retail ASPD and (3) around 20% yoy growth in vending revenues.
PBT 209 193 390 86.5 101.9
Reported PAT 150 220 330 120.4 50.1
Sequential decline in margins in the coffee business is on account of higher salience of
Adjusted PAT 150 220 330 120.4 50.1
the low-margin exports business.
EPS (Rs/share) 0.1 0.1 0.2 120.4 50.1

India Strategy

Change (%)
Colgate-Palmolive (India)
Net sales 10,375 10,333 11,400 9.9 10.3
EBITDA 2,443 2,824 2,997 22.7 6.1 Our topline growth estimate of 10% yoy bakes in 5% volume and a similar realization
EBIT 2,102 2,429 2,593 23.4 6.8 growth. Our volume growth assumption translates into a 2-yr CAGR of around 1%.
PBT 2,182 2,519 2,691 23.3 6.8
Reported PAT 1,426 1,707 1,755 23.1 2.8
Extraordinaries (0) 71 — — —
Our margin expansion estimate (EBITDA margin up 273 bps yoy) primarily bakes in GST-
Adjusted PAT 1,426 1,635 1,755 23.1 7.3
related tailwinds.
EPS (Rs/share) 5.2 6.0 6.5 23.1 7.3
Dabur India
Net sales 19,147 19,664 20,409 6.6 3.8
We model around 10.5% like-for-like growth in domestic revenues, a combination of
EBITDA 4,176 4,035 4,638 11.1 14.9
6% volume growth and 4.5% realization improvement. We note that the base quarters
EBIT 3,780 3,630 4,219 11.6 16.2
remain noisy as March 2017 had a post-demonetization restocking benefit.
PBT 4,314 4,162 4,859 12.6 16.7
Reported PAT 3,331 3,321 3,824 14.8 15.1
GST tailwinds continue to aid margin expansion; however, there are no material leverage
Adjusted PAT 3,331 3,321 3,824 14.8 15.1
benefits for Dabur.
EPS (Rs/share) 1.9 1.9 2.2 14.8 15.1
GlaxoSmithKline Consumer
Net sales 11,019 10,347 11,864 7.7 14.7
Our revenue growth forecast bakes in 8% growth in domestic revenues, 5% in exports,
EBITDA 2,171 2,040 2,241 3.2 9.8
and 4% in auxiliary income. Domestic revenue growth is a combination of 5% volumes
EBIT 1,994 1,889 2,062 3.4 9.2
and 3% realization growth.
PBT 2,695 2,529 2,797 3.8 10.6
Reported PAT 1,759 1,637 1,815 3.2 10.9
We see EBITDA margin contraction of 82 bps yoy largely on account of a sharp jump in
Adjusted PAT 1,759 1,637 1,815 3.2 10.9
employee expenses, in line with recent trends.
EPS (Rs/share) 41.8 38.9 43.1 3.2 10.9
Godrej Consumer Products
Net sales 23,898 26,303 26,296 10.0 (0.0)
EBITDA 5,414 5,890 6,455 19.2 9.6 We model 13% yoy growth in domestic and 7% in international business. On the
domestic front, we expect weakness in HI to persist (model 6% growth), soaps segment
EBIT 5,045 5,494 6,037 19.7 9.9
to sustain healthy momentum (model 15% growth) and growth in hair colors to
PBT 4,923 5,467 5,981 21.5 9.4 normalize versus strong 3QFY18 levels (model 12% growth).
Reported PAT 3,876 4,299 4,661 20.3 8.4
Extraordinaries 73 (23) — — —
We model 190 bps expansion in EBITDA margin driven by a still-benign overall RM
Adjusted PAT 3,803 4,322 4,661 22.6 7.9
scenario, continued benefits from the company's cost rationalization programs and GST-
EPS (Rs/share) 5.6 6.3 6.8 22.6 7.9
related tailwinds.
Hindustan Unilever
Net sales 82,130 85,900 89,266 8.7 3.9
EBITDA 16,510 16,800 19,118 15.8 13.8 We model 14% revenue growth in domestic FMCG business (comparable) aided by 8%
UVG and 6% price-led growth; this implies a 2-yr UVG CAGR of 6%. Our channel checks
EBIT 15,430 15,590 17,850 15.7 14.5
suggest healthy share gains for the organized players in categories such as soaps and
PBT 16,200 17,060 18,756 15.8 9.9 detergents with HUL being a key beneficiary.
Reported PAT 11,830 13,260 13,179 11.4 (0.6)
We expect EBITDA margin to expand 130 bps yoy aided by 240 bps expansion in GM
Adjusted PAT 11,180 11,980 13,179 17.9 10.0
(partly GST-linked). We model some reinvestment of this GM expansion into higher A&P
EPS (Rs/share) 5.2 5.5 6.1 17.9 10.0
intensity.
ITC
Net sales 111,255 97,720 122,977 10.5 25.8
EBITDA 38,754 39,045 44,386 14.5 13.7 We model 4% decline in cigarette volumes yoy and a 12% increase in gross realizations
EBIT 36,336 36,138 41,333 13.8 14.4 (portfolio-level; dragged by adverse mix). We forecast 8.5% yoy growth in cigarette EBIT.
PBT 40,471 42,167 45,677 12.9 8.3
Reported PAT 26,695 30,902 29,838 11.8 (3.4)
Extraordinaries — 2,700 — — —
We model modest acceleration in yoy growth for all the other segments (low base).
Adjusted PAT 26,695 28,202 29,838 11.8 5.8
Expect other FMCG revenues to grow ~17% yoy (comparable).
EPS (Rs/share) 2.2 2.3 2.4 11.0 5.4
Jubilant Foodworks
Net sales 6,128 7,952 7,656 24.9 (3.7)
We model 24% SSG (partly optical due to price hikes taken to compensate for loss of
EBITDA 605 1,369 1,288 112.9 (5.9)
ITC) and ~25% topline growth; we have modeled 8 Domino's store additions and 1
EBIT 167 976 870 421.1 (10.8)
store closure in DD (net).
PBT 203 1,009 905 346.1 (10.3)
Reported PAT 67 660 597 788.3 (9.6)
Extraordinaries (80) — — — —
We expect EBITDA margin to expand 700 bps yoy, despite 230 bps contraction in GM,
Adjusted PAT 148 660 597 304.6 (9.6)
aided by leverage, cost saving initiatives and GST-related tailwinds.
EPS (Rs/share) 5.8 5.8 5.8 0.0 0.0

Strategy India

Change (%)
Jyothy Laboratories
Net sales 4,462 4,312 4,958 11.1 15.0
EBITDA 608 693 774 27.2 11.6 We expect 16% comparable growth in underlying revenues driven by 10% volume
EBIT 525 615 691 31.7 12.4 growth.
PBT 448 517 596 33.1 15.1
Reported PAT 1,087 347 480 (55.8) 38.3
Extraordinaries 918 — — — — Estimated EBITDA margin expansion of 200 bps yoy is largely GM-driven; GM expansion
Adjusted PAT 169 347 480 185.0 38.3 primarily led by mix improvement as we expect the lowest-GM HI segment to grow the
EPS (Rs/share) 3.2 3.2 3.2 — — slowest.
Manpasand Beverages
Net sales 2,672 1,431 3,737 39.9 161.1
EBITDA 518 267 782 51.0 192.4 We model 40% yoy growth in revenues largely volume-led, aided by capacity addition
EBIT 277 92 469 69.2 410.4 and early onset of the summer season in a few states.
PBT 361 139 494 36.9 254.8
Reported PAT 313 120 426 35.9 255.0
Adjusted PAT 313 120 426 35.9 255.0 EBITDA margin expansion driven by some softening of RM prices and leverage benefits.
EPS (Rs/share) 2.7 1.0 3.7 35.8 255.0
Marico
Net sales 13,146 16,243 14,844 12.9 (8.6)
We model 16% topline growth in the domestic business driven by 6% volume growth
EBITDA 2,595 3,021 2,607 0.5 (13.7)
and around 10% realization improvement. We bake in volume growth of 6%, 2% and
EBIT 2,321 2,807 2,360 1.7 (15.9)
11% in Parachute rigids, Saffola and VAHO, respectively.
PBT 2,497 2,943 2,652 6.2 (9.9)
Reported PAT 1,687 2,205 1,921 13.9 (12.9)
Extraordinaries — — — — — Copra inflation remains high and reflects in our 260 bps yoy GM decline forecast. Expect
EBITDA margins to be nearly flat yoy on account of (1) pass-through of a good portion
Adjusted PAT 1,687 2,205 1,921 13.9 (12.9)
of copra inflation; we expect a 28% realization improvement in CNO and (2) cost
EPS (Rs/share) 1.3 1.7 1.5 13.9 (12.9) controls and leverage benefits.
Nestle India
Net sales 24,919 26,015 28,902 16.0 11.1
EBITDA 5,272 6,449 7,110 34.9 10.3 We model 12% growth in net domestic revenues aided by robust growth in both Maggi
EBIT 4,405 5,612 6,250 41.9 11.4 and non-Maggi portfolio (expect 16% yoy growth).
PBT 4,593 5,889 6,506 41.6 10.5
Reported PAT 3,068 3,118 4,146 35.2 33.0
Extraordinaries (98) (1,114) (200) 103.9 (82.1)
We model 350 bps expansion in EBITDA margin driven by GST tailwinds and operating
Adjusted PAT 3,166 4,233 4,346 37.3 2.7
leverage benefits.
EPS (Rs/share) 31.8 32.3 43.0 35.2 33.0
Page Industries
Net sales 4,989 6,210 6,069 21.6 (2.3)
EBITDA 974 1,289 1,231 26.4 (4.5) We expect ~22% revenue growth aided by 15% volume growth and 7% price/mix-led
EBIT 909 1,219 1,157 27.4 (5.0) growth. GM decline reflects higher in-house production; there is a corresponding decline
PBT 910 1,231 1,179 29.6 (4.2) in subcontracting expenses below the gross profit line.
Reported PAT 668 834 803 20.2 (3.8)
Adjusted PAT 637 834 803 26.1 (3.8)
We model 75 bps expansion in EBITDA margin aided by operating leverage.
EPS (Rs/share) 57.1 74.8 72.0 26.1 (3.8)
PC Jeweller
Net sales 21,554 26,449 25,942 20.4 (1.9)
EBITDA 1,769 2,689 2,664 50.7 (0.9) We expect about 27% revenue growth in the domestic jewelry business aided by market
EBIT 1,710 2,636 2,600 52.1 (1.4) share gains from the unorganized sector and 2% growth in exports.
PBT 1,515 2,276 2,135 40.9 (6.2)
Reported PAT 1,101 1,627 1,492 35.5 (8.3)
We model 206 bps expansion in EBITDA margin entirely aided by expansion in GM
Adjusted PAT 1,101 1,627 1,492 35.5 (8.3)
(driven by higher studded share) and operating leverage.
EPS (Rs/share) 3.1 4.5 4.2 35.5 (8.3)
Pidilite Industries
Net sales 12,954 15,429 16,162 24.8 4.7
We model 15% underlying volume as well as revenue growth for the consumer bazaar
EBITDA 2,579 3,703 3,943 52.9 6.5
(CBP) business. Reported growth will be lower at around 13% on account of GST-related
EBIT 2,283 3,410 3,582 56.9 5.0
accounting changes.
PBT 2,520 3,564 4,094 62.5 14.9
Reported PAT 1,569 2,398 3,285 109.4 37.0
Extraordinaries — — — — — Estimated flat EBITDA margin for the quarter reflects (1) 60 bps decline in standalone
Adjusted PAT 1,569 2,398 3,285 109.4 37.0 EBITDA margins on account of RM inflation and (2) sharp expansion in subsidiary
EPS (Rs/share) 3.1 4.7 6.4 109.4 37.0 margins off a low base.

India Strategy

Change (%)
S H Kelkar and Company
Net sales 2,475 2,831 2,860 15.6 1.0
EBITDA 370 576 462 24.9 (19.9) We estimate 15.5% growth in consolidated revenues aided by a low base and the
EBIT 316 518 402 27.1 (22.3) general uptick in aggregate FMCG volume growth.
PBT 346 517 423 22.4 (18.2)
Reported PAT 274 272 295 7.4 8.4
Extraordinaries — (67) — — — Expect the recent RM challenges to result in GM contraction of 110 bps yoy and 300 bps
Adjusted PAT 274 339 295 7.4 (13.2) qoq. EBITDA margins should however expand on the back of operating leverage and
EPS (Rs/share) 1.9 2.3 2.0 7.4 (13.2) cost controls.
Tata Global Beverages
Net sales 16,743 17,304 16,952 1.2 (2.0)
EBITDA 1,789 2,351 2,182 21.9 (7.2) We model 1% growth in consolidated revenues aided by about 8% growth in domestic
EBIT 1,477 2,060 1,882 27.4 (8.7) tea business partially negated by subdued growth in the international business.
PBT 1,398 2,181 2,047 46.5 (6.1)
Reported PAT 314 1,679 1,119 256.2 (33.4)
Extraordinaries (425) 406 — — — We model 200 bps yoy expansion in EBITDA margin aided by robust margin expansion
in the domestic tea business, cost saving initiatives and incremental gain from
Adjusted PAT 739 1,273 1,119 51.4 (12.1)
divestment of select loss-making businesses. Higher jump in PAT aided by sharp
EPS (Rs/share) 1.2 2.0 1.8 51.4 (12.1) reduction in interest expense.
Titan Company
Net sales 34,297 41,366 40,509 18.1 (2.1) We model (1) 19% yoy growth in jewelry segment revenues off a high 54% growth in
EBITDA 2,721 4,447 4,216 54.9 (5.2) the base quarter; FY2018E growth works out to around 27% yoy, above the company's
EBIT 2,497 4,153 3,871 55.0 (6.8) guided 25%, (2) 13% like-for-like revenue growth in the watch segment, driven by share
PBT 2,687 4,233 4,104 52.7 (3.0) gains and (3) modest revival in growth in other smaller business segments.
Reported PAT 2,007 3,082 2,961 47.5 (3.9)
Adjusted PAT 2,022 3,082 2,961 46.4 (3.9) We bake in strong yoy expansion in margins driven by operating leverage benefits.
EPS (Rs/share) 2.3 3.5 3.3 46.4 (3.9)
United Breweries
Net sales 11,127 11,971 13,478 21.1 12.6
EBITDA 1,011 1,526 1,898 87.7 24.3 We expect 21% growth in revenues aided by 12% volume growth aided a by low base
EBIT 178 877 1,239 595.5 41.3 and upstocking in Maharashtra and 8% growth in net realization/case.
PBT 76 791 1,257 1,550.2 59.0
Reported PAT 67 474 812 1,106.4 71.4
We model 500 bps expansion in EBITDA margin aided by better leverage and cost
Adjusted PAT 67 474 812 1,106.4 71.4
saving initiatives.
EPS (Rs/share) 0.3 1.8 3.1 1,106.4 71.4
United Spirits
Net sales 20,250 22,633 21,254 5.0 (6.1)
We model 5% net revenue growth led by 3.9% growth in underlying volumes; on a
EBITDA 2,609 2,723 3,273 25.4 20.2
reported basis, we expect a volume decline of 9% yoy on account of low-end
EBIT 2,191 2,386 2,917 33.2 22.3
franchising impact.
PBT 1,523 1,964 2,666 75.0 35.7
Reported PAT (1,042) 1,347 3,043 NM 125.9
Extraordinaries (1,919) (126) 1,278 NM NM We model 340 bps yoy expansion in gross margin on account of RM softness (molasses
Adjusted PAT 877 1,473 1,765 101.2 19.8 in particular). At an EBITDA level, we expect the expansion to be lower at 250 bps yoy
EPS (Rs/share) 6.0 10.1 12.1 101.2 19.8 as the company reinvests the GM gains.
Varun Beverages
Net sales 8,792 5,274 10,710 21.8 103.1
EBITDA 1,372 225 1,606 17.1 614.8 We expect 22% net revenue growth driven by 19% volume growth (low base and kicker
EBIT 572 (655) 675 18.0 NM from consolidation of acquired territories) and 3% price-led growth.
PBT 141 (1,165) 143 1.5 NM
Reported PAT 45 (728) 96 112.4 NM
We model 60 bps yoy drop in EBITDA margin largely due to lower profitability of
Adjusted PAT 45 (728) 96 112.4 NM
acquired territories and distribution rights for Tropicana and Quaker oat drinks.
EPS (Rs/share) 0.2 (4.0) 0.5 112.3 NM

Strategy India

Change (%)
Energy
BPCL
Net sales 570,365 606,164 655,224 14.9 8.1
EBITDA 27,023 31,882 32,657 20.9 2.4 Sequential steady EBITDA as lower adventitious gains of Rs2.3 bn versus Rs16 bn in
EBIT 21,784 25,108 25,912 18.9 3.2 3QFY18 will be offset by higher underlying refining and marketing margins
PBT 26,933 30,380 30,320 12.6 (0.2)
Reported PAT 18,417 21,437 21,012 14.1 (2.0)
Extraordinaries (4,900) — — — — We assume (1) higher crude throughput at 7.5 mn tons versus 7.3 mn tons in 3QFY18,
Adjusted PAT 21,651 21,437 21,012 (3.0) (2.0) (2) 7% yoy growth in sales volumes to 10 mn tons and (3) higher normalized refining
EPS (Rs/share) 11.0 10.9 10.7 (3.0) (2.0) margins at US$6/bbl (+US$1.1/bbl qoq) led by improvement in Kochi performance
Castrol India
Net sales 8,822 9,703 9,281 5.2 (4.3)
EBITDA 2,633 3,066 2,707 2.8 (11.7) Modest yoy increase in profits driven by 3% growth in volumes and 2% higher
EBIT 2,510 2,963 2,589 3.2 (12.6) realizations, which will be partially offset by higher RM costs.
PBT 2,692 3,121 2,767 2.8 (11.3)
Reported PAT 1,790 1,967 1,810 1.1 (8.0)
Extraordinaries — — — — — We assume (1) volumes at 51.7 mn liters versus 50.2 mn liters in 1QCY17 due to the
Adjusted PAT 1,790 1,967 1,810 1.1 (8.0) likely revival in CV volumes and (2) sequential moderation in EBITDA margin due to
EPS (Rs/share) 1.8 2.0 1.8 1.1 (8.0) higher base oil prices.
GAIL (India)
Net sales 134,520 144,143 135,231 0.5 (6.2)
EBITDA 17,043 21,362 22,401 31.4 4.9 We expect GAIL to report a sequential increase in EBITDA, led by continued strength
EBIT 13,572 17,695 18,622 37.2 5.2 across business segments.
PBT 16,330 20,243 20,626 26.3 1.9
Reported PAT 2,602 12,622 13,688 426.1 8.4
Extraordinaries (7,670) (1,664) (0) — —
We model modest sequential moderation in gas transmission volumes to 107.3 mcm/d
Adjusted PAT 10,272 14,286 13,688 33.3 (4.2)
as compared to 109.2 mcm/d in 3QFY18 and 101.5 mcm/d in 4QFY17.
EPS (Rs/share) 4.6 6.3 6.1 33.3 (4.2)
GSPL
Net sales 2,446 3,502 3,554 45.3 1.5
EBITDA 2,013 2,971 3,202 59.1 7.8 Sequential increase in EBITDA reflects modestly higher volumes/tariffs and normalization
EBIT 1,553 2,529 2,740 76.4 8.4 of operating expenses.
PBT 1,710 2,595 2,906 69.9 12.0
Reported PAT 1,270 1,816 1,898 49.4 4.5
We assume (1) 1% qoq increase in gas transmission volumes to 34 mcm/d and (2)
Adjusted PAT 1,270 1,816 1,898 49.4 4.5
marginally higher transmission tariffs at Rs1.13/scm.
EPS (Rs/share) 2.3 3.2 3.4 49.4 4.5
HPCL
Net sales 515,248 574,743 618,313 20.0 7.6
Sequential decline in EBITDA driven by lower adventitious gains of Rs2.5 bn versus
EBITDA 32,225 31,585 28,267 (12.3) (10.5)
Rs14.8 bn in 3QFY18, which will be partially offset by higher marketing margins on auto
EBIT 25,475 24,786 21,301 (16.4) (14.1)
fuels
PBT 29,109 28,631 22,363 (23.2) (21.9)
Reported PAT 18,188 19,497 15,028 (17.4) (22.9)
Extraordinaries (5,219) — — — — We assume (1) stable crude throughput at 4.6 mn tons versus 4.5 mn tons in 3QFY18,
Adjusted PAT 23,407 19,497 15,028 (35.8) (22.9) (2) 7% yoy growth in sales volumes to 9.4 mn tons and (3) steady normalized refining
EPS (Rs/share) 15.3 12.8 9.9 (35.8) (22.9) margins at US$6/bbl
Indraprastha Gas
Net sales 10,019 11,839 11,824 18.0 (0.1)
EBITDA 2,414 2,631 2,781 15.2 5.7 Strong yoy increase in EBITDA driven by (1) 12% growth in volumes to 5.4 mcm/d and
EBIT 2,171 2,177 2,348 8.2 7.8 (2) expansion in unit margins.
PBT 2,375 2,499 2,554 7.5 2.2
Reported PAT 1,395 1,812 1,834 31.5 1.2
We expect sequential increase in unit EBITDA to Rs5.8/scm from Rs5.4/scm in 3QFY18
Adjusted PAT 1,395 1,812 1,834 31.5 1.2
and Rs5.6/scm in 4QFY17.
EPS (Rs/share) 2.0 2.6 2.6 31.5 1.2

India Strategy

Change (%)
IOCL
Net sales 1,003,375 1,106,669 1,178,096 17.4 6.5
Sharp sequential decline in EBITDA driven by lower adventitious gains of Rs3.8 bn versus
EBITDA 110,316 132,687 85,135 (22.8) (35.8)
Rs63 bn in 3QFY18, which will be partially offset by higher marketing margins on auto
EBIT 93,026 115,537 67,645 (27.3) (41.5)
fuels
PBT 102,079 122,522 70,428 (31.0) (42.5)
Reported PAT 37,206 78,832 47,187 26.8 (40.1)
Extraordinaries (66,230) — — — — We assume (1) lower crude throughput at 17.5 mn tons versus 18.2 mn tons in 3QFY18,
Adjusted PAT 80,918 78,832 47,187 (41.7) (40.1) (2) 6% yoy growth in sales volumes to 20.9 mn tons and (3) lower underlying refining
EPS (Rs/share) 8.5 8.3 5.0 (41.7) (40.1) margins at US$5.8/bbl (-US$0.3/bbl qoq)
Mahanagar Gas
Net sales 5,253 5,814 5,828 10.9 0.2
EBITDA 1,631 2,009 2,031 24.5 1.1 We expect EBITDA and net profits to remain steady qoq driven by stable volumes as well
EBIT 1,375 1,741 1,754 27.6 0.8 as unit margins.
PBT 1,505 1,883 1,926 28.0 2.3
Reported PAT 995 1,240 1,252 25.9 1.0
We assume (1) 7% yoy growth in volumes to 2.82 mcm/d and (2) sequentially stable
Adjusted PAT 995 1,240 1,252 25.9 1.0
unit EBITDA at Rs8/scm.
EPS (Rs/share) 10.1 12.6 12.7 25.9 1.0
ONGC
Net sales 217,140 229,959 243,014 11.9 5.7
EBITDA 101,142 125,247 125,394 24.0 0.1 Sequential increase in net income reflects (1) higher crude realization at US$66.2/bbl
EBIT 47,267 66,633 63,433 34.2 (4.8) (+US$5.6/bbl qoq) and (2) higher other income including dividends from HPCL and IOCL.
PBT 67,261 74,800 90,010 33.8 20.3
Reported PAT 43,402 50,147 63,438 46.2 26.5
Extraordinaries (11,890) — — — —
We model 7% yoy decline in sales volumes of crude oil to 5.7 mn tons and 4% yoy
Adjusted PAT 52,722 50,147 63,438 20.3 26.5
increase in gas volumes to 4.8 bcm.
EPS (Rs/share) 4.1 3.9 4.9 20.3 26.5
Oil India
Net sales 25,119 28,526 29,020 15.5 1.7
We expect strong sequential increase in net income driven by (1) higher crude realization
EBITDA 9,373 12,745 12,418 32.5 (2.6)
at US$65.1/bbl (+US$5.7/bbl qoq) and (2) higher other income including dividends from
EBIT 5,153 8,684 7,625 48.0 (12.2)
IOCL.
PBT 12,160 9,788 13,034 7.2 33.2
Reported PAT 193 7,052 8,451 4,276.7 19.8
We model largely stable sales volumes for crude oil at 0.81 mn tons (+1% yoy) and
Adjusted PAT 8,950 7,052 8,451 (5.6) 19.8
natural gas at 0.58 bcm (-2% yoy).
EPS (Rs/share) 7.4 5.9 7.0 (5.6) 19.8
Petronet LNG
Net sales 63,651 77,571 83,946 31.9 8.2
EBITDA 7,063 8,474 8,452 19.7 (0.3) We expect EBITDA to remain stable sequentially as lower off-take of LNG volumes at
EBIT 6,047 7,435 7,372 21.9 (0.8) Dahej terminal will be offset by 5% escalation in tariffs.
PBT 6,186 7,482 7,624 23.2 1.9
Reported PAT 4,708 5,288 5,101 8.3 (3.5)
We model LNG re-gasification volumes at 201 tn BTUs versus 223 tn BTUs in 3QFY18
Adjusted PAT 4,708 5,288 5,101 8.3 (3.5)
and 180 tn BTUs in 4QFY17.
EPS (Rs/share) 3.1 3.5 3.4 8.3 (3.5)
Reliance Industries
Net sales 848,230 998,100 1,183,689 39.5 18.6
We expect modest qoq increase in standalone net income led by (1) steady refining
EBITDA 122,330 175,880 179,853 47.0 2.3
margins at US$11.6/bbl and (2) increase in petchem volumes, which will be partially
EBIT 88,790 130,580 132,874 49.7 1.8
offset by moderation in margins.
PBT 102,590 131,810 132,064 28.7 0.2
Reported PAT 80,460 94,230 94,740 17.7 0.5
Extraordinaries — — — — — Consolidated net income will be boosted by an increase in Jio's EBITDA due to an
Adjusted PAT 80,460 94,230 94,740 17.7 0.5 increase in revenues; we expect Jio to report modest profits of Rs8.1 bn as compared to
EPS (Rs/share) 13.6 15.9 16.0 17.7 0.5 Rs5 bn in 3QFY18.

Strategy India

Change (%)
Industrials
ABB
Net sales 21,663 27,794 23,142 6.8 (16.7)
We expect 8-9% growth in power grids and electrification products based on similar
EBITDA 1,609 2,937 1,913 18.9 (34.9)
growth in PGCIL ordering in 4QFY18; with IIP improving in recent months, process
EBIT 1,233 2,505 1,502 21.8 (40.0)
automation is likely to see better growth from a pickup in private capex.
PBT 1,339 2,515 1,732 29.3 (31.1)
Reported PAT 900 1,715 1,126 25.2 (34.3)
ABB India had achieved 8.1% EBITDA margin in CY2017 and we expect the firm to
Adjusted PAT 900 1,715 1,126 25.2 (34.3)
sustain the same in 1QCY18.
EPS (Rs/share) 4.2 8.1 5.3 25.2 (34.3)
BHEL
Net sales 96,882 66,264 97,654 0.8 47.4
We assume pro rata execution of Yadadri and Manuguru in power segment revenues.
EBITDA 6,509 2,954 8,723 34.0 195.3
We expect industry segment revenues to reflect pro rata execution of Rs6.7 bn EMU
EBIT 4,370 1,134 6,798 55.6 499.6
order won in December 2017.
PBT 2,686 1,898 7,766 189.2 309.1
Reported PAT 2,156 1,532 5,669 163.0 270.1
Extraordinaries — — — — — We assume steady raw material cost of 60% and a Rs2.5 bn expense from a wage
revision. Lower employee count of ~38,000 reported as of December 2017 will keep
Adjusted PAT 2,156 1,532 5,669 163.0 270.1
employee cost in check despite the wage revision. We also model lower other income
EPS (Rs/share) 0.6 0.4 1.5 163.0 270.1 with nil forex gains given steady range-bound forex rate in 4QFY18.
Carborundum Universal
Net sales 5,599 6,116 6,355 13.5 3.9 We expect 9-10% growth in consolidated abrasives segment in 4QFY18E as well as
FY2018E as GST-led disruption is behind us. Ceramics segment is more exposed to
EBITDA 923 1,047 1,203 30.4 14.9 industrial capex, which remains muted. We expect low 3-4% growth in ceramics on a
high base as well as new product launches (Z450). In electrominerals, we model 22%
EBIT 675 778 919 36.3 18.2
growth for the full year (28% implied in 4Q versus 20% in 9M) on the back of (1) stable
PBT 646 793 965 49.3 21.7 VAW operations and (2) ramp-up of relocated capacities. Revenue estimates in all the
segments also incorporate expectation of price increase that the company has been
Reported PAT 444 543 665 49.9 22.5 planning.
Extraordinaries — — — — — We expect flat qoq margins in abrasives and ceramics as input cost increase gets
gradually passed on to customers. Newly launched ceramic product Z450 is expected to
Adjusted PAT 444 543 665 49.9 22.5 improve segmental margin but we will wait for proof of customer adoption of Z450
before we build the associated cost benefit. In EMD segment, we expect further margin
EPS (Rs/share) 2.4 2.9 3.6 49.9 22.5 improvement to 16.5% (versus 15.5% in 9MFY18) due to operating leverage benefit
from ramp up of relocated capacities. Higher volumes in VAW have also helped CUMI
EBITDA margin (%) 16.5 17.1 18.9 244 bps 181 bps withstand the power tariff hike in Russia.
CG Power and Industrial
Net sales 17,101 15,161 17,442 2.0 15.0
EBITDA 1,181 1,271 1,407 19.1 10.7 We expect strong double-digit growth in Industrial Systems to drive domestic business
EBIT 744 888 1,008 35.6 13.5 while Power Systems will likely remain subdued with 4-5% growth.
PBT 351 332 574 63.4 72.8
Reported PAT (318) 868 463 NM (46.6)
We model margin improvement in the standalone business as the sale of overseas
Adjusted PAT 376 868 463 23.3 (46.6)
entities will reduce business support overheads for the domestic entity.
EPS (Rs/share) 0.6 1.4 0.7 23.3 (46.6)
Crompton Greaves Consumer
Net sales 10,762 9,382 11,783 9.5 25.6
We expect revenues to grow by 9.5% yoy (on reported basis; excluding the impact of
EBITDA 1,386 1,165 1,561 12.6 34.0
accounting changes due to GST) led by (1) 17% yoy growth in the lighting segment and
EBIT 1,357 1,133 1,528 12.6 34.9
(2) 7% yoy growth in the consumer durables segment.
PBT 1,273 1,040 1,453 14.2 39.7
Reported PAT 885 695 974 10.0 40.1
We expect EBITDA margin to increase by 80 bps qoq (+35 bps yoy) largely due to
Adjusted PAT 885 695 974 10.0 40.1
EPS (Rs/share) 1.4 1.1 1.6 10.0 40.1
Cummins India
Net sales 11,844 13,547 12,030 1.6 (11.2)
We factor management guidance of 0-5% growth in domestic revenues for FY2018
EBITDA 1,700 1,967 1,864 9.6 (5.2)
implying a 3% decline for the quarter; management guidance of decline of ~5-10% in
EBIT 1,492 1,730 1,625 9.0 (6.1)
exports in FY2018 implies yoy growth in 4QFY18 on a low base.
PBT 1,954 2,197 2,186 11.9 (0.5)
Reported PAT 1,585 1,722 1,690 6.7 (1.8)
Extraordinaries — — — — — We model sustainable gross margin improvement of ~50 bps qoq due to value-
engineering efforts. Employee expenses (increments, bonuses) will remain elevated but
Adjusted PAT 1,585 1,722 1,690 6.7 (1.8)
other expenses will decline qoq due to the absence of one-time higher charges paid to
EPS (Rs/share) 5.7 6.2 6.1 6.7 (1.8) the parent for expert services. Overall EBITDA margin will thus be up ~100 bps qoq.

India Strategy

Change (%)
Havells India
Net sales 17,102 19,658 25,582 49.6 30.1 We expect 50% yoy revenue growth led by (1) 10% yoy growth in ex-Lloyd revenues;
EBITDA 2,296 2,622 3,331 45.1 27.0 we model 4% yoy growth in switchgear and cable segment and strong double-digit
EBIT 1,988 2,259 2,956 48.7 30.9 growth in other segments and (2) 40% due to Lloyd's acquisition; note that 4Q is a
PBT 2,337 2,482 3,136 34.2 26.4 seasonally strong quarter for the AC business.
Reported PAT 947 1,944 2,195 131.8 13.0
Extraordinaries (768) 210 — — — We expect EBITDA margin to decline by 40 bps yoy (down 30 bps qoq) due to
integration of low-margin Lloyd business. We model EBITDA margin of ex-Lloyd business
Adjusted PAT 1,410 1,792 2,195 55.7 22.5
at around 15% (flattish qoq; up 160 bps yoy); for Lloyd, we build in 8% EBITDA margin
EPS (Rs/share) 2.3 2.9 3.5 55.7 22.5 in the quarter.
Kalpataru Power Transmission
Net sales 14,963 14,174 17,819 19.1 25.7
EBITDA 1,573 1,520 1,908 21.3 25.6 We expect T&D segment to post low-single digit revenue growth; railways and pipeline
EBIT 1,380 1,323 1,682 21.9 27.1 segments will drive the growth for KPTL.
PBT 1,284 1,151 1,599 24.6 38.9
Reported PAT 896 752 1,050 17.2 39.6
We expect gradual convergence between T&D and non-T&D margins to keep EBITDA
Adjusted PAT 896 752 1,050 17.2 39.6
margin in line with the full year guidance of ~11%.
EPS (Rs/share) 5.8 4.9 6.8 17.2 39.6
KEC International
Net sales 28,492 24,049 32,705 14.8 36.0
EBITDA 3,011 2,441 3,467 15.1 42.0 We expect domestic T&D business to grow in low single digits (4-5%) due to
moderation in PGCIL ordering while SAE Towers (TBCB orders' EPC component) will
EBIT 2,603 2,170 3,177 22.0 46.4
support the overall T&D segment growth of 7-8% in the quarter. We expect >40% yoy
PBT 2,081 1,686 2,569 23.5 52.4 growth in railways segment led by railway electrification and composite projects.
Reported PAT 1,455 1,118 1,671 14.8 49.5
We expect sustainable improvement in EBITDA margin on the back of (1) stringent order
Adjusted PAT 1,455 1,118 1,671 14.8 49.5
selection criteria, (2) internal efficiency improvements and (3) ramp-up in subscale
EPS (Rs/share) 5.7 4.3 6.5 14.8 49.5
businesses of railways and civil.
L&T
Net sales 368,280 287,475 408,662 11.0 42.2
EBITDA 43,351 31,440 55,264 27.5 75.8 We expect ~9% growth in the core E&C business in FY2018 across all segments except
Power and Others; Infrastructure segment will remain the key driver on the back of
EBIT 36,124 26,895 50,463 39.7 87.6
government ordering even as private capex remains subdued. This will imply 10% core
PBT 37,152 25,399 49,503 33.2 94.9 E&C revenue growth in 4QFY18.
Reported PAT 30,246 14,900 36,082 19.3 142.2
Extraordinaries (2,810) (138) 2,003 NM NM
Adjusted PAT 33,056 15,037 34,079 3.1 126.6 We model FY2018 core E&C EBITDA margin at 10.3%, in line with the management
EPS (Rs/share) 23.6 10.7 24.4 3.1 126.6 guidance. We model stable EBITDA margin yoy of 13.4% in 4QFY18.
Siemens
Net sales 29,288 24,295 32,434 10.7 33.5 Energy management is the biggest segment for Siemens (>40% in revenue mix) where
EBITDA 2,786 2,726 3,463 24.3 27.1 we expect 18% growth, lower than 26% growth reported in FY2017 and 1QFY18. Lower
growth projection is based on lower PGCIL ordering in FYTD18. We also expect flat yoy
EBIT 2,284 2,256 2,956 29.4 31.0
revenues in Power & Gas as new powergen orders have been subdued in the country for
PBT 2,792 2,944 3,608 29.2 22.5 the last several quarters. Other segments are expected to post 10-15% yoy growth and
Reported PAT 1,863 1,907 2,304 23.6 20.8 will remain volatile from quarter to quarter.
Extraordinaries 72 — — — — Segmental margins will remain volatile as usual but we expect overall EBITDA margin to
Adjusted PAT 1,792 1,907 2,304 28.6 20.8 be up 100 bps yoy based on the company's margin expansion in the last two quarters,
EPS (Rs/share) 5.0 5.4 6.5 28.6 20.8 on the back of internal cost efficiency measures (design changes, localization,
EBITDA margin (%) 9.5 11.2 10.7 116 bps -55 bps technology, digitalization).
Thermax
Net sales 13,428 9,805 15,065 12.2 53.6 We expect gradual pickup in energy segment led by light industries such as F&B, pharma
EBITDA 1,521 924 1,771 16.5 91.7 and textiles. Environment segment, however, will likely witness continued headwinds, as
EBIT 1,358 756 1,635 20.4 116.3 implementation of new power plant emission norms continues to be delayed.
PBT 1,663 958 1,860 11.9 94.2 Operationalization of Dahej resin facility will provide revenue support, though it is difficult
Reported PAT (167) 632 1,210 NM 91.4 to model at this juncture.
Extraordinaries (1,328) — — — — In line with management guidance, we model ~10% EBITDA margin for FY2018,
Adjusted PAT 1,161 632 1,210 4.2 91.4 implying a higher 12% margin in the quarter. Broad-based growth in the energy segment
EPS (Rs/share) 10.3 5.6 10.7 4.2 91.4 seen in the last quarter has increased the likelihood of better margin performance by the
EBITDA margin (%) 11.3 9.4 11.8 43 bps 233 bps energy segment compared to the environment segment.
Voltas
Net sales 19,983 13,650 22,531 12.8 65.1 We expect strong 17% growth in UCP segment in the quarter on the back of (1) early
EBITDA 1,852 1,089 2,283 23.3 109.6 and intense arrival of summer with maximum temperatures already higher by 2-5º C
EBIT 1,796 1,028 2,217 23.5 115.6 across India as per the IMD, (2) increase in AC prices on account of BEE rating change,
PBT 2,491 1,277 2,733 9.7 114.0 and (3) impact of pre-buying that happened in the previous quarter. A good order
Reported PAT 1,991 995 1,884 (5.4) 89.3 backlog will drive 9% growth in the EMP segment revenues.
Extraordinaries 2 — (20) (1,350.0) — We expect 100 bps contraction in margin on account of (1) reset in commodity prices for
Adjusted PAT 1,996 976 1,899 (4.8) 94.6 Voltas and (2) part absorption of the cost increase related to BEE ratings change. For
EPS (Rs/share) 6.0 3.0 5.7 (4.8) 94.6 EMP segment, the management has demonstrated a strict profitability threshold with
EBITDA margin (%) 9.3 8.0 10.1 86 bps 215 bps 9MFY18 EMP margin of 6%, which we expect to continue in 4QFY18 as well.

Strategy India

Change (%)
Infrastructure
Adani Ports and SEZ
Net sales 22,315 26,889 23,592 5.7 (12.3) We model total cargo volume of 44 mn tons in the quarter, an 8% qoq decline reflecting
EBITDA 13,335 17,842 13,984 4.9 (21.6) sharp reduction in imported coal volumes for the Adani Power's Mundra Power plant.
With major ports data of 8-9% yoy container volume growth for FYTD18 and given
EBIT 10,376 14,906 10,826 4.3 (27.4)
ADSEZ's past outperformance, we can expect 20%+ container volume growth or >4.8
PBT 9,654 14,233 10,778 11.6 (24.3) mn TEUs for ADSEZ in FY2018. For 4QFY18, that would imply container volumes of 1
Reported PAT 9,591 9,785 8,011 (16.5) (18.1) mn TEUs, up 11% yoy.
Extraordinaries 56 (69) (19) (133.7) (72.8) We assume broadly steady qoq port-level EBITDA margin of 70%. The management has
Adjusted PAT 11,669 9,941 9,322 (20.1) (6.2) mentioned 1 percentage point uptick every year for the next 2-3 years due to automation
EPS (Rs/share) 5.6 4.8 4.5 (20.1) (6.2) and deployment of technology for better efficiency in port operations. This has been
EBITDA margin (%) 59.8 66.4 59.3 -49 bps -709 bps achieved in 9MFY18 and thus we maintain steady margin for 4QFY18.
Ashoka Buildcon
Net sales 6,100 6,589 7,232 18.6 9.8
EBITDA 636 796 878 38.0 10.3
We expect uptick in execution on recent order wins to drive 18% yoy revenue growth.
EBIT 489 651 732 49.8 12.4
PBT 740 689 926 25.1 34.3
Reported PAT 654 520 722 10.5 38.9
We assume healthy 12.4% EBITDA margin for the quarter, lower than 13-13.5%
Adjusted PAT 654 520 721 10.3 38.7
guidance.
EPS (Rs/share) 3.5 2.8 3.8 10.3 38.7
Container Corp.
Net sales 13,279 14,536 14,853 11.9 2.2
EBITDA 2,650 2,596 3,028 14.3 16.6 We model volumes in 4QFY18 based on sequential trend in Indian railways data for
January-February 2018 (1% growth in domestic, 5% in EXIM). Revenue growth, on the
EBIT 1,773 1,601 1,991 12.3 24.4
other hand, mirrors the NTKM growth witnessed by Indian Railways (3% qoq decline in
PBT 2,333 2,328 2,710 16.1 16.4 domestic, 4% growth in EXIM).
Reported PAT 3,357 2,891 2,442 (27.3) (15.5)
We expect ~100 bps improvement in EBITDA margin for the quarter compared to
Adjusted PAT 3,357 2,891 2,442 (27.3) (15.5)
9MFY18 on the back of (1) increased double stacking and (2) control on empties
EPS (Rs/share) 13.8 11.9 10.0 (27.3) (15.5)
repositioning costs due to Concor's circuit-route concept.
Gateway Distriparks
Net sales 3,069 970 1,004 (67.3) 3.4
Taking cues from Indian Railways data and port-level data, we assume ~modest 8% yoy
EBITDA 523 220 236 (54.8) 7.3
growth in CFS revenues. We assume 6% growth in ICD business in FY2018, in line with
EBIT 334 145 158 (52.7) 9.2
Indian Railways EXIM NTKM growth.
PBT 332 143 155 (53.2) 9.0
Reported PAT 238 191 221 (7.1) 15.6
We expect margin uptick in the CFS business and improvement for the ICD business on
Adjusted PAT 238 191 221 (7.1) 15.6
the back of (1) double stacking at Viramgam terminal and (2) reduction in discounts.
EPS (Rs/share) 2.2 1.8 2.0 (7.1) 15.6
Gujarat Pipavav Port
Net sales 1,746 1,627 1,863 6.7 14.5
EBITDA 1,147 947 1,129 (1.5) 19.3 We model total cargo handling of 3.7 mn tons in 4QFY18E, a strong 10% qoq volume
growth. On a more granular basis, we model qoq growth of 6% in bulk, 11% in
EBIT 887 696 884 (0.4) 27.1
containers on recent container service additions, and 9% in liquid on pickup seen in LPG
PBT 954 769 967 1.4 25.8 volumes in the last quarter.
Reported PAT 663 500 626 (5.6) 25.1
Adjusted PAT 662 500 626 (5.5) 25.1 We expect EBITDA margin to improve qoq to 60% driven by operating leverage as well
EPS (Rs/share) 1.4 1.0 1.3 (5.5) 25.1 as increasing share of high-margin non-bulk cargo (containers, liquid, ro-ro).
IRB Infrastructure
Net sales 16,271 12,962 14,569 (10.5) 12.4
EBITDA 8,218 6,303 7,426 (9.6) 17.8 We estimate a modest 5% yoy decline in construction revenues on depleted backlog
EBIT 5,954 5,091 6,207 4.2 21.9 and a healthy 4% qoq growth in toll revenues (not comparable yoy).
PBT 2,983 3,179 4,438 48.8 39.6
Reported PAT 2,063 1,539 3,718 80.2 141.6
Extraordinaries (10) (535) 535 NM NM
We estimate steady segmental EBITDA margin; overall EBITDA would decline yoy on
Adjusted PAT 2,072 2,073 3,183 53.6 53.5
invIT-related deconsolidation.
EPS (Rs/share) 5.9 5.9 9.1 53.6 53.5
Mahindra Logistics
Net sales — 8,351 9,056 — 8.4 We model 30% growth in total SCM revenues in FY2018 led by 25% growth in business
EBITDA — 295 374 — 26.8 from Mahindra Group clients (M&M's volume growth and better pricing), and 37%
EBIT — 242 318 — 31.6 growth in SCM business from non-Mahindra clients (largely due to an increase in
PBT — 245 339 — 38.3 penetration and wallet share in existing client base). This implies 26% segmental growth
Reported PAT — 148 223 — 50.3 in 4QFY18.
In 4QFY18, we model flat qoq gross margin of >8% in SCM segment as MLL had
Adjusted PAT — 148 223 — 50.3
sustainably improved margin in the last quarter due to internal cost efficiency measures
EPS (Rs/share) — — — — —
as well as greater focus on warehousing/value-added activities.
EBITDA margin (%) — 3.5 4.1 — 59 bps

India Strategy

Change (%)
Sadbhav Engineering
Net sales 10,329 9,351 11,316 9.6 21.0
EBITDA 1,096 1,056 1,273 16.1 20.5 We expect strong qoq improvement on pickup in execution of recent project wins; we
EBIT 854 810 1,033 21.0 27.6 expect 10% yoy growth on a high base.
PBT 716 598 1,037 44.9 73.3
Reported PAT 682 618 994 45.6 60.8
Adjusted PAT 682 618 994 45.6 60.8 We expect margin to remain at healthy levels, at lower end of the 11.2%-12% guidance.
EPS (Rs/share) 4.0 3.6 5.8 45.7 60.8
Internet
Info Edge
Net sales 2,084 2,272 2,399 15.1 5.6
We expect Naukri to report revenue growth of 13% yoy driven by a seasonally strong
EBITDA 632 788 896 41.8 13.6
4Q and 99acres to report revenue growth of 30% yoy driven by recovery in real estate
EBIT 576 736 836 45.2 13.6
advertising on RERA clarity and base effect.
PBT 689 956 1,109 61.1 16.1
Reported PAT 329 533 732 122.8 37.2
Extraordinaries (40) (169) — — —
We expect Naukri to sustain strong EBITDA margins of 58% and assume 99acres and
Adjusted PAT 329 533 732 122.8 37.2
others to post EBITDA losses similar to 3QFY18.
EPS (Rs/share) 2.7 4.4 6.1 122.8 37.7
Just Dial
Net sales 1,817 1,968 1,999 10.0 1.6
EBITDA 322 466 469 45.8 0.7 We expect tepid revenue growth of 10% yoy on account of weak campaign additions
EBIT 219 375 375 71.3 (0.1) and pricing.
PBT 345 401 528 53.0 31.6
Reported PAT 254 286 376 48.5 31.6
We expect strong controls on employee and other expenses to lead to sequentially
Adjusted PAT 254 286 376 48.5 31.6
steady EBITDA margin of 23.5%.
EPS (Rs/share) 3.6 4.1 5.4 48.6 31.6
Media
DB Corp.
Net sales 5,171 5,986 5,594 8.2 (6.6) We expect DB Corp to report 9% growth in print advertisement revenues on a low base
EBITDA 1,122 1,396 1,231 9.7 (11.8) (2-year CAGR at 3% and 4-year CAGR at 1.7%). We expect 9% yoy growth in circulation
EBIT 904 1,163 996 10.1 (14.4) revenues largely on account of growth in copies driven by ongoing circulation expansion
PBT 950 1,191 1,026 8.0 (13.8) drive.
Reported PAT 642 781 677 5.5 (13.3)
Extraordinaries — — — — — We expect EBITDA margin to increase by 30 bps yoy to 22% on account of robust print
advertisement revenue growth. EBITDA and earnings will be suppressed by non-recurring
Adjusted PAT 642 781 677 5.5 (13.3)
investments in marketing, promotion and surveys pertaining to circulation expansion
EPS (Rs/share) 3.5 4.3 3.7 5.5 (13.3) drive; we model Rs150 mn of non-recurring cost.
DishTV
Net sales 14,635 15,745 15,911 8.7 1.1 Dish TV will report financials of the merged entity, Dish TV Videocon. We have forecast
EBITDA 4,225 4,921 5,036 19.2 2.3 financials of Dish TV Videocon for March 2018 quarter and combined historical financials
of Dish TV and Videocon d2h for a like-for-like comparison. Please note that actuals may
EBIT 724 1,230 1,336 84.6 8.6
vary materially in event of likely changes/alignment of accounting of the two companies
PBT (408) 270 296 NM 9.7 (revenue recognition and depreciation accounting of Videocon d2h will likely be aligned
Reported PAT (501) 275 239 NM (12.8) with that of Dish TV).
Extraordinaries — — — — — We estimate 280K net subscriber additions (down 8% yoy) to 29.8 mn subscribers and
Adjusted PAT (501) 275 239 NM (12.8) flat ARPU on qoq basis. We estimate EBITDA margin to improve 280 bps yoy and 40
bps qoq to 31.7% largely due to cost savings. Key investor focus will be on progress on
EPS (Rs/share) (0.3) 0.1 0.1 NM (12.8) integration of the two companies and update on synergies if any. We note that Dish
EBITDA margin (%) 28.9 31.3 31.7 278 bps 40 bps management has indicated synergies of Rs5.1/7.6 bn in FY2019/20.
Jagran Prakashan
Net sales 5,620 5,981 5,715 1.7 (4.5) Jagran will report flat print advertisement revenues due to (1) decline in government and
EBITDA 1,441 1,629 1,405 (2.5) (13.8) political advertisement spends (high in base quarter due to UP elections; it is down to 18-
EBIT 1,090 1,286 1,065 (2.4) (17.2) 20% of Jagran's advertisement revenues from 22-24% last year ahead of elections), (2)
PBT 1,138 1,318 1,130 (0.7) (14.3) weakness in local retail advertising.
Reported PAT 811 872 751 (7.4) (13.9) Circulation revenue would also be flat yoy largely due to pressure on copy price in UP
Extraordinaries — — — — — and Bihar given the rise in competitive intensity; this trend is reversing though. We
Adjusted PAT 811 872 751 (7.4) (13.9) estimate 14% yoy growth in radio revenues. We expect EBITDA margin to decline by
EPS (Rs/share) 2.6 2.8 2.4 (7.4) (13.9) 110 bps yoy to 24.6% on account of weak print advertisement revenue. EBITDA and
EBITDA margin (%) 25.6 27.2 24.6 -106 bps -266 bps earnings will be down on yoy basis.

Strategy India

Change (%)
PVR
Net sales 4,942 5,573 5,651 14.3 1.4 March quarter is a seasonally weak quarter for the multiplex industry. This year is
different though— PVR will report its strongest March quarter thanks to the deferred
EBITDA 584 1,003 876 50.1 (12.7)
release of the blockbuster movie 'Padmaavat'. Other prominent movies were ‘Sonu
EBIT 221 629 476 115.9 (24.2) Ke…’, ‘Raid’, ‘Padman’ and ‘Black Panther’.
PBT 60 449 311 421.6 (30.7) We estimate (1) 3% growth in footfalls to 18.8 mn. We note that comparable
Reported PAT (1) 289 207 NM (28.5) properties’ footfalls will decline 2-3% yoy despite good box office performance, a
concern, (2) average ticket price growth of 7% yoy to Rs203, (3) 11% yoy growth in F&B
Extraordinaries (15) — — — — spends per head to Rs87 and (4) solid 35% yoy growth in advertisement revenues. We
Adjusted PAT (1) 289 207 NM (28.5) expect EBITDA margin to be up 370 bps yoy to 15.5% largely due to operating leverage
benefits. Given many moving parts pertaining to GST, a yoy comparison of operating
EPS (Rs/share) (0.0) 6.2 4.4 NM (28.5) margin is not relevant. PVR will continue with conservative accounting pending few
EBITDA margin (%) 11.8 18.0 15.5 369 bps -250 bps clarifications around GST.
Sun TV Network
Net sales 5,825 6,833 6,851 17.6 0.3 We expect Sun to report 20% yoy growth in advertisement revenues on a low base (7%
EBITDA 3,320 3,954 4,016 21.0 1.6 decline in the base quarter). Additionally, Sun's outperformance versus industry is
EBIT 3,170 3,776 3,836 21.0 1.6 attributable to recovery in ratings of Kannada and Malayalam GECs and steps taken by
PBT 3,541 4,066 4,236 19.6 4.2 the management to improve monetization.
Reported PAT 2,359 2,670 2,761 17.0 3.4

We expect 13%/40% yoy growth in domestic DTH/cable subscription revenues
Extraordinaries — — — — — translating into 21% yoy growth in domestic subscription revenues. High growth in cable
on low base would be partly on account of ongoing digitization in the Tamil Nadu
Adjusted PAT 2,359 2,670 2,761 17.0 3.4
market and some catch-up revenues. We expect EBIT margin to improve 160 bps yoy to
EPS (Rs/share) 6.0 6.8 7.0 17.0 3.4 56%, led by strong growth in advertisement revenues. Investors will focus on updates
on content deal renewal with ARASU and rising competition in the Tamil market.
Zee Entertainment Enterprises
Net sales 15,280 18,381 16,830 10.1 (8.4) TV industry advertisement spends grew about 13-15% yoy in March 2018 quarter as per
industry estimates. We expect Zee to report 21% yoy growth in advertisement revenues
EBITDA 4,687 5,944 4,380 (6.5) (26.3)
(like-for-like: adjusted for sale of sports business and RBNL + IWPL acquisitions). Strong
EBIT 4,370 5,440 3,955 (9.5) (27.3) outperformance is largely driven by market share gains of Zee network. We expect
domestic subscription revenues ex-sports to grow 14% yoy. Zee will close the year with
PBT 4,268 5,477 4,345 1.8 (20.7) 11% growth in domestic subscription revenue, a tad weaker than beginning-of-the-year
Reported PAT 15,142 3,218 2,234 (85.2) (30.6) expectations.
Extraordinaries 12,234 — — — — We expect a sharp increase in operating costs due to (1) programming and marketing
spends pertaining to the new digital platform, ZEE5 (launched in February 2018), and (2)
Adjusted PAT 3,529 3,698 2,597 (26.4) (29.8) increase in programming hours on Zee TV. We expect EBITDA margin contraction of 470
EPS (Rs/share) 3.7 3.8 2.7 (26.4) (29.8) bps yoy to 26% largely due to digital losses. Adjusted PAT/EPS is excluding RPS impact.
We have built ETR of 40% due to tax incidence on repatriation of funds from overseas
EBITDA margin (%) 30.7 32.3 26.0 -465 bps -632 bps subsidiaries.
Metals & Mining

Coal India
Net sales 224,239 207,085 235,553 5.0 13.7
We expect 4.8% yoy volume growth with dispatches of 159 mn tons in 4QFY18.
EBITDA 26,399 36,830 70,346 166.5 91.0
Sequential improvement in earnings is also aided by revision in notified prices of coal
EBIT 17,901 29,320 63,599 255.3 116.9
from January 2018.
PBT 42,784 46,102 77,326 80.7 67.7
Reported PAT 27,161 30,050 52,904 94.8 76.1
EBITDA and net profits of 4QFY17 include provision of Rs9.5 bn on account of grade
Adjusted PAT 27,179 30,050 52,904 94.7 76.1
slippages and to that extent are not comparable with EBITDA and net profits of 4QFY18.
EPS (Rs/share) 4.4 4.8 8.5 94.7 76.1
Hindalco Industries
Net sales 110,261 110,228 106,615 (3.3) (3.3) We model aluminum deliveries of 325,000 tons (flat qoq, -1% yoy) and aluminum
EBITDA 13,472 13,117 11,734 (12.9) (10.5) EBITDA of Rs8 bn (-13% yoy, -15% qoq). The sequential decline in aluminum profits is
due to higher alumina transfer price from Utkal Alumina. We estimate EBITDA from Utkal
EBIT 9,670 9,295 7,893 (18.4) (15.1) Alumina (wholly-owned subsidiary) to increase 88% qoq to Rs4.6 bn on company's
PBT 6,485 7,460 6,137 (5.4) (17.7) transfer pricing formulae.
Reported PAT 5,028 3,755 4,050 (19.4) 7.8

Extraordinaries — (1,153) — — — We estimate copper EBITDA of Rs4.3 bn (-14% yoy, +2% qoq). Copper earnings will be
Adjusted PAT 5,028 4,514 4,050 (19.4) (10.3) supported by higher contribution from free metal, duty differential led by increase in
EPS (Rs/share) 2.3 2.0 1.8 (19.4) (10.3) copper prices.
Hindustan Zinc
Net sales 62,602 59,220 58,184 (7.1) (1.7)
EBITDA 37,480 32,440 33,210 (11.4) 2.4 We expect (1) refined zinc metal volumes of 197,000 tons (-9% yoy, -2% qoq), (2) lead
EBIT 32,159 27,630 28,376 (11.8) 2.7 production of 48,100 tons (+7% yoy, +5% qoq) and (3) silver volumes of 140 tons (flat
PBT 36,829 30,440 32,576 (11.5) 7.0 yoy, +6% qoq).
Reported PAT 30,570 22,300 24,758 (19.0) 11.0
4QFY18 profits will be impacted by losses on metal hedged previously. We estimate
Adjusted PAT 30,570 22,300 24,758 (19.0) 11.0
hedging losses of Rs3.3 bn for 165,000 tons of zinc, lead hedged earlier at lower metal
EPS (Rs/share) 7.2 5.3 5.9 (19.0) 11.0
prices.

India Strategy

Change (%)
Jindal Steel and Power
Net sales 64,861 71,048 86,908 34.0 22.3
EBITDA 15,521 16,065 21,588 39.1 34.4 We model steel deliveries of 1.2 mn tons (+28% yoy, +31% qoq) led by ramp-up of
Angul steel plant post commissioning of basic oxygen furnace in December 2017. We
EBIT 5,462 6,433 11,143 104.0 73.2
expect steel EBITDA/ton to increase 27% qoq to Rs12,400 aided by higher steel prices
PBT (3,090) (3,227) 1,347 NM NM (+Rs4,100/ton qoq).
Reported PAT (495) (2,660) 412 NM NM
Extraordinaries 2,534 — — — —
Adjusted PAT (3,029) (2,660) 412 NM NM We estimate Jindal Power's EBITDA to decline 9% qoq to Rs3.2 bn (-15% yoy) due to
EPS (Rs/share) (3.3) (2.9) 0.5 NM NM lower generation.
JSW Steel
Net sales 166,562 178,610 203,504 22.2 13.9
EBITDA 31,649 38,510 44,283 39.9 15.0 We expect blended realization to increase by Rs3,600/ton qoq led by a sharp increase in
EBIT 22,870 29,990 35,716 56.2 19.1 domestic steel prices (+Rs4,130/ton qoq) and higher export prices (+Rs950/ton qoq).
PBT 13,953 21,180 26,997 93.5 27.5
Reported PAT 10,143 17,530 17,747 75.0 1.2
Extraordinaries — 3,080 — — — Higher realizations will be partly offset by an increase in coking coal and iron-ore costs.
Adjusted PAT 10,143 14,450 17,747 75.0 22.8 We estimate EBITDA/ton of Rs9,990 (+32% yoy, +11% qoq). We model steel deliveries
EPS (Rs/share) 4.2 6.0 7.3 75.0 22.8 of 4.1 mn tons (+4% yoy).
National Aluminium Co.
Net sales 24,233 23,888 26,634 9.9 11.5
We model alumina shipments of 420,000 tons (+4% yoy, +63% qoq) led by destocking
EBITDA 4,275 5,198 5,974 39.7 14.9
given lower sales in 9MFY18. We estimate aluminum volumes of 107,000 tons (-2%
EBIT 3,189 3,954 4,724 48.2 19.5
yoy, -4% qoq).
PBT 3,798 4,715 5,395 42.0 14.4
Reported PAT 2,684 7,218 3,561 32.7 (50.7)
Extraordinaries (30) 6,254 — — — We expect alumina realizations to decline to US$374/ton (-6% qoq) after a fall in
Adjusted PAT 2,684 3,090 3,561 32.7 15.2 benchmark alumina prices during the quarter. We expect some cost respite from better
EPS (Rs/share) 1.4 1.6 1.8 32.7 15.2 coal availability.
NMDC
Net sales 28,717 24,690 35,006 21.9 41.8
We model iron ore sales of 9.4 mn tons (-4% yoy, +17% qoq). We expect blended
EBITDA 9,321 12,099 18,190 95.1 50.3
realization to increase by 22% qoq to Rs3,720/ton (+27% yoy) led by price hikes taken
EBIT 9,015 11,327 17,414 93.2 53.7
in Chhattisgarh mines and higher Karnataka e-auction prices.
PBT 10,299 12,327 18,421 78.9 49.4
Reported PAT 5,119 8,866 12,158 137.5 37.1
Extraordinaries 2,013 1,449 — — — We estimate EBITDA/ton to increase 29% qoq to Rs1,930 (+103% yoy) led by improved
Adjusted PAT 3,770 7,910 12,158 222.5 53.7 iron-ore realizations. We expect the company to report higher costs in the quarter due to
EPS (Rs/share) 1.2 2.5 3.8 222.5 53.7 accounting of CSR expenditure.
Tata Steel
Net sales 338,960 334,466 365,602 7.9 9.3
EBITDA 70,252 56,969 67,671 (3.7) 18.8 We estimate blended India steel realizations to increase by Rs4,000/ton qoq and India
EBIT 54,360 42,219 52,801 (2.9) 25.1 EBITDA/ton to increase 18% qoq to Rs16,500 (+21% yoy). Increase in coking coal costs
PBT 43,250 31,205 42,722 (1.2) 36.9 will partly offset realization gains.
Reported PAT (7,251) 12,944 30,236 NM 133.6
Extraordinaries (40,686) (11,156) — — —
We expect Europe EBITDA/ton to increase to US$75 (US$40/ton EBITDA in 3QFY18)
Adjusted PAT 33,520 24,100 30,236 (9.8) 25.5
aided by higher steel spreads. We also note that 3QFY18 EBITDA was low due to
EPS (Rs/share) 34.5 20.0 25.1 (27.3) 25.5
shutdown related costs.
Vedanta
Net sales 225,113 243,610 235,599 4.7 (3.3)
EBITDA 73,501 67,630 69,745 (5.1) 3.1 The sequential improvement in EBITDA is led by aluminum, oil & gas and iron-ore
operations. We estimate (1) oil & gas EBITDA to increase to Rs15.6 bn (+39% yoy,
EBIT 57,464 52,140 54,100 (5.9) 3.8
+17% qoq) on higher oil prices, (2) aluminum EBITDA to increase to Rs7.6 bn (-26%
PBT 51,637 44,810 49,181 (4.8) 9.8 yoy, +26% qoq), and (3) iron ore EBITDA at Rs2.4 bn (Rs2.3 bn in 3QFY18).
Reported PAT 28,014 20,530 7,725 (72.4) (62.4)
Extraordinaries (1,484) (1,580) (18,000) 1,112.9 1,039.2 We expect zinc international EBITDA to decline 29% qoq to Rs3.2 bn (+130% yoy) due
Adjusted PAT 29,710 22,110 25,725 (13.4) 16.4 to increase in production costs. Reported net-income is lower due to an impairment loss
EPS (Rs/share) 8.0 5.9 6.9 (13.4) 16.4 of Rs18 bn post closure of Goa iron-ore mining operations based on a Supreme Court
EBITDA margin (%) 32.7 27.8 29.6 -305 bps 184 bps order.

Strategy India

Change (%)
Others
Astral Poly Technik
Net sales 5,816 5,285 7,012 20.6 32.7
EBITDA 893 737 1,100 23.2 49.3 We model strong growth in revenues driven by robust increase in pipes volumes (22%
EBIT 771 595 955 23.9 60.4 yoy) and 15% yoy growth in the adhesives business.
PBT 770 613 969 26.0 58.0
Reported PAT 563 467 691 22.8 47.8
Extraordinaries 31.2 34.6 0.5 (98.4) (98.6)
We expect a sequential improvement in EBITDA margins to 15.7% driven by operating
Adjusted PAT 563 467 691 22.8 47.8
leverage in a seasonally strong quarter and increase in gross margins for pipes segment.
EPS (Rs/share) 4.7 3.9 5.8 22.8 47.8
Avenue Supermarts
Net sales 31,106 40,948 39,489 26.9 (3.6) We expect sequential decline in revenues on account of weaker buying post the festive
EBITDA 2,077 4,217 3,364 62.0 (20.2) season in October-November 2017. Strong yoy revenue growth will be boosted by
EBIT 1,724 3,824 2,945 70.9 (23.0) sustained strong SSSG, ramp-up of new stores including Dmart Ready opened in
PBT 1,515 3,851 2,971 96.1 (22.9) 9MFY18.
Reported PAT 967 2,518 1,931 99.8 (23.3)
We expect EBITDA margin at 8.5% to be below 9MFY18 margins of 9.3% on account
Adjusted PAT 967 2,518 1,931 99.8 (23.3)
of weaker product mix and start-up expenses of ~15 new stores opened in 4QFY18.
EPS (Rs/share) 1.5 4.0 3.1 99.8 (23.3)
Bayer Cropscience
Net sales 2,153 4,797 4,705 118.5 (1.9)
We expect sharp yoy growth in revenues driven by (1) lower base in 4QFY17 due to
EBITDA (581) 226 207 NM (8.3)
returns from dealers post demonetization and (2) normalization of inventories in
EBIT (662) 142 124 NM (12.4)
3QFY18.
PBT (523) 119 264 NM 121.6
Reported PAT (361) 107 177 NM 65.5
We assume EBITDA margins to remain subdued at 4.4% due to uneven rainfall in the
Adjusted PAT (361) 107 177 NM 65.5
strongholds and rising input cost pressure.
EPS (Rs/share) (10.5) 3.1 5.2 NM 65.5
EBITDA margin (%) (27.0) 4.7 4.4 3139 bps -31 bps
Cera Sanitaryware
Net sales 3,112 2,909 3,401 9.3 16.9
EBITDA 517 406 511 (1.2) 25.8
We expect sales to improve in 4QFY18.
EBIT 458 352 455 (0.8) 29.2
PBT 489 358 445 (9.0) 24.2
Reported PAT 323 231 287 (11.2) 24.2
Adjusted PAT 323 231 287 (11.2) 24.2 We expect utilization levels to improve, but remain low.
EPS (Rs/share) 24.8 17.7 22.0 (11.2) 24.2
Dhanuka Agritech
Net sales 1,571 2,215 1,721 9.5 (22.3)
EBITDA 326 353 323 (1.1) (8.7) We expect strong revenue growth of 10% yoy driven by (1) new product launches in the
EBIT 281 317 285 1.5 (10.0) last two quarters and (2) demand recovery in the domestic ag-chem market.
PBT 329 361 333 1.4 (7.6)
Reported PAT 242 286 235 (2.8) (17.7)
Margins are expected to remain weak at 18.7% due to (1) higher cost of raw material
Adjusted PAT 242 286 235 (2.8) (17.7)
imports from China and (2) inability to increase prices due to low farm profitability.
EPS (Rs/share) 4.8 5.7 4.7 (2.8) (17.7)
Godrej Agrovet
Net sales 10,290 12,207 11,637 13.1 (4.7)
EBITDA 646 969 880 36.3 (9.2) We expect revenues to grow by 13% driven by strength in the domestic crop protection
EBIT 452 754 657 45.5 (12.8) market and increasing volumes in the oil palm business.
PBT 468 698 618 32.1 (11.5)
Reported PAT 545 496 371 (32.0) (25.2)
Extraordinaries 226 113 — — — We expect 130 bps improvement in EBIT margins driven by (1) improvement in the
Adjusted PAT 110 466 371 238.2 (20.3) vegetable oil segment margins and (2) recovery in dairy business margins due to lower
EPS (Rs/share) 0.6 2.4 1.9 226.1 (20.3) milk prices.
HSIL
Net sales 5,944 5,784 6,794 14.3 17.5
EBITDA 734 725 778 6.0 7.2
We expect a better quarter for PPD, BPD as well as CPD businesses.
EBIT 481 436 484 0.8 11.1
PBT 396 317 385 (2.8) 21.2
Reported PAT 303 220 296 (2.5) 34.5
New business set-up costs will reflect in CPD margins, while BPD division is expected to
Adjusted PAT 303 220 296 (2.5) 34.5
perform better.
EPS (Rs/share) 4.2 3.0 4.1 (2.5) 34.5

India Strategy

Change (%)
InterGlobe Aviation
Net sales 48,482 61,779 63,794 31.6 3.3
EBITDA 5,080 9,915 7,921 55.9 (20.1) We expect strong revenue growth driven by 30% yoy growth in passenger volumes and
EBIT 4,028 8,841 6,793 68.6 (23.2) 1% increase in the average ticket price.
PBT 6,189 10,716 8,818 42.5 (17.7)
Reported PAT 4,403 7,620 6,261 42.2 (17.8)
We expect 9.5% sequential increase in ATF price to result in 360 bps qoq reduction in
Adjusted PAT 4,403 7,620 6,261 42.2 (17.8)
the EBITDA margin.
EPS (Rs/share) 12.2 19.9 16.4 33.9 (17.8)
Kaveri Seed
Net sales 403 706 488 21.0 (30.9)
EBITDA (272) 97 (94) (65.4) (196.6) We expect 21% yoy increase in sales in a seasonally inconsequential quarter, supported
EBIT (337) 40 (160) (52.4) (502.7) by diversification into fruits, vegetable and paddy seeds.
PBT (320) 56 (125) (60.9) (324.7)
Reported PAT (872) 54 (149) (82.9) (374.6)
EBITDA is expected to improve to Rs9 mn driven by operating leverage and sales of
Adjusted PAT (306) 54 (149) (51.2) (374.6)
higher margin seeds (ex-cotton).
EPS (Rs/share) (4.4) 0.8 (2.3) (49.0) (374.6)
EBITDA margin (%) (67.4) 13.8 (19.3) 4811 bps -3306 bps
PI Industries
Net sales 6,056 5,377 6,890 13.8 28.1
We expect 14% yoy growth in revenues led by (1) higher domestic demand due to new
EBITDA 1,537 1,048 1,647 7.2 57.2
launches and (2) higher realization from CSM order book due to likely inventory
EBIT 1,351 836 1,429 5.7 70.8
restocking by customers in Latin America.
PBT 1,299 983 1,492 14.9 51.8
Reported PAT 1,352 806 1,149 (15.0) 42.5
Extraordinaries — — — — — We expect ~150 bps qoq moderation in EBITDA margins led by (1) increasing
Adjusted PAT 1,352 806 1,149 (15.0) 42.5 competition for Nominee Gold and (2) rising input costs, which will be offset by
EPS (Rs/share) 9.9 5.9 8.4 (15.0) 42.5 contribution from the higher-margin export business.
Rallis India
Net sales 3,481 3,902 4,107 18.0 5.3
We expect moderate growth in revenues driven by (1) continued market share gains in
EBITDA 416 375 457 9.8 21.9
key domestic crops and (2) higher export revenues due to an improving Latin America
EBIT 296 255 331 11.7 29.7
market.
PBT 315 280 351 11.5 25.4
Reported PAT 311 251 266 (14.4) 6.2
We expect margins to decline to 11.1% as compared to 12% in 4QFY17 due to increase
Adjusted PAT 311 251 266 (14.4) 6.2
in the raw material input costs from China.
EPS (Rs/share) 1.6 1.3 1.4 (14.4) 6.2
SIS
Net sales — 15,377 15,714 — 2.2
EBITDA 694 843 931 34.2 10.5 We expect strong 34% yoy EBITDA growth to be aided by 19% increase in India guard
EBIT 493 718 781 58.4 8.8 count and higher commissions, as well as growth in FM and Australia businesses.
PBT 493 555 638 29.4 14.9
Reported PAT 300 465 505 68.4 8.5
We assume no reduction in interest costs on account of elevated debt levels due to
Adjusted PAT — 465 505 — 8.5
higher working capital requirements to fund growth across segments.
EPS (Rs/share) — 6.4 6.9 — 8.5
EBITDA margin (%) — 5.5 5.9 — 44 bps
SRF
Net sales 13,258 13,971 15,879 19.8 13.7
We expect strong sequential revenue growth of 14% driven by (1) 15% growth in the
EBITDA 1,436 2,527 2,918 103.2 15.5
chemicals business with improvement in the ag-chem export market and (2) 9% growth
EBIT 706 1,757 2,127 201.1 21.1
in technical textiles driven by volume growth.
PBT 738 1,727 2,042 176.8 18.2
Reported PAT 386 1,252 1,461 278.5 16.6
EBITDA margins will moderate by ~110 bps qoq primarily led by oversupply in packaging
Adjusted PAT 386 1,252 1,461 278.5 16.6
business and normalization of margins in technical textiles.
EPS (Rs/share) 6.7 21.8 25.4 278.5 16.6
Tata Chemicals
Net sales 29,193 25,739 27,283 (6.5) 6.0
EBITDA 4,875 5,626 5,975 22.6 6.2 We expect 5% qoq growth in revenues largely driven by soda ash price increase in
EBIT 3,497 4,340 4,675 33.7 7.7 January to offset the increase in energy costs.
PBT 3,455 3,618 3,953 14.4 9.3
Reported PAT 2,481 2,393 19,994 706.0 735.6
Extraordinaries — — 17,471 — —
We expect reported net income to include proceeds from sale of assets of Rs17.4 bn
Adjusted PAT 2,481 2,393 2,523 1.7 5.4
while adjusted net income is expected to increase by 2% yoy to Rs2.5 bn.
EPS (Rs/share) 10 9 10 1.7 5.4

Strategy India

Change (%)
Teamlease Services
Net sales 8,169 9,181 9,264 13.4 0.9
EBITDA 120 179 217 80.3 21.3 We expect an acceleration in sequential associate employee headcount addition to
EBIT 99 155 191 92.9 23.3 3,000 versus 9MFY18 quarterly run-rate of 1,500.
PBT 154 189 231 49.7 22.4
Reported PAT 338 184 227 (32.9) 23.0
Extraordinaries — — — — — We expect a sustained increase in the apprentice headcount (higher-margin business),
Adjusted PAT 338 184 227 (32.9) 23.0 steady commissions, as well as full quarter contribution of Evolve to drive a strong 80%
EPS (Rs/share) 20 11 13 (32.9) 23.0 yoy increase in EBITDA.
UPL
Net sales 53,414 41,940 59,454 11.3 41.8
We expect 11% growth in revenues driven by (1) 14% volume growth due to recovery in
EBITDA 11,261 8,290 12,150 7.9 46.6
Brazil market and shift in the sowing season, (2) moderation in pricing pressure to -1%
EBIT 9,395 6,600 10,212 8.7 54.7
and (3) 2% negative FX impact.
PBT 7,842 5,550 9,567 22.0 72.4
Reported PAT 7,401 5,740 6,935 (6.3) 20.8
Extraordinaries (9) 360 — — —
We expect modest decline in EBITDA margins to 20.4% primarily led by higher input
Adjusted PAT 7,410 5,398 6,935 (6.4) 28.5
costs for the industry.
EPS (Rs/share) 14.6 10.6 13.7 (6.4) 28.5
Vardhman Textiles
Net sales 16,085 16,480 16,880 4.9 2.4
EBITDA 2,755 2,256 2,646 (4.0) 17.3 We expect robust sequential improvement in EBITDA driven by recovery in margins to
EBIT 1,848 1,650 2,026 9.7 22.8 15.7% reflecting reduction in domestic cotton prices.
PBT 2,126 1,744 2,248 5.7 28.9
Reported PAT 1,586 1,355 1,632 2.9 20.4
We expect 10% yoy improvement in net income driven by higher gross margin and lower
Adjusted PAT 1,586 1,355 1,632 2.9 20.4
depreciation expense due to a change in the accounting policy.
EPS (Rs/share) 26.3 22.5 27.1 2.9 20.4
Whirlpool
Net sales 10,146 9,580 11,667 15.0 21.8
EBITDA 1,246 891 1,364 9.5 53.0 We expect revenues to increase by 15% yoy led by strong growth in the overall
EBIT 997 643 1,104 10.6 71.6 consumer durable industry.
PBT 1,159 834 1,294 11.6 55.2
Reported PAT 744 531 854 14.8 60.7
We expect EBITDA margin to decline by 60 bps yoy as higher RM cost will offset the
Adjusted PAT 744 531 854 14.8 60.7
EPS (Rs/share) 5.9 4.2 6.7 14.8 60.7
Pharmaceuticals
Apollo Hospitals
Net sales 18,331 21,393 21,715 18.5 1.5 We expect revenue growth of 19% yoy driven by 13% growth in healthcare business
and 22% yoy growth in pharmacy business. Revenue growth in healthcare segment will
EBITDA 1,510 2,172 2,231 47.7 2.7 largely be driven by ramp-up of new facilities while existing centers will grow in high
single digits. We expect 22% growth in standalone pharmacy business driven by
EBIT 586 1,284 1,314 124.2 2.3 aggressive expansion of store network.
Extraordinaries — — — — — We expect consolidated EBITDA margin to stay flat qoq at 10.3%. We expect 17.5%
Adjusted PAT 555 438 500 (9.9) 14.2 margin in healthcare business, 4.5% margin in pharmacy business and steady Rs240 mn
EBITDA margin (%) 8.2 10.2 10.3 203 bps 12 bps EBITDA loss in AHLL business.
Aurobindo Pharma
Net sales 36,416 43,361 42,083 15.6 (2.9)
EBITDA 7,212 10,256 9,456 31.1 (7.8) We expect US business revenues to decline by US$15 mn qoq, reflecting high
EBIT 6,212 8,875 8,090 30.2 (8.8) competition in Renvela tablets and lack of meaningful launches in the quarter. We expect
PBT 6,287 8,944 8,238 31.0 (7.9) the RoW business to grow by 11% yoy, and EU business to grow by 27% yoy.
Reported PAT 5,321 5,950 6,362 19.6 6.9
Extraordinaries 190 73 — — —
Adjusted PAT 5,321 5,950 6,362 19.6 6.9 We expect EBITDA margin to contract 120 bps qoq to 22.5% in the quarter. We expect
EPS (Rs/share) 9.1 10.2 10.9 19.6 6.9 EPS to grow by 20% yoy and 7% qoq.
Biocon
Net sales 9,310 10,580 11,567 24.2 9.3
EBITDA 1,874 2,218 2,552 36.2 15.0 We expect revenue growth of 24% driven by 30% growth in domestic formulations due
EBIT 1,149 1,240 1,495 30.1 20.6 to a low base in 4QFY17. We expect biologics to grow 24%, and research services to
PBT 1,647 1,432 1,642 (0.3) 14.7 grow 18% yoy respectively.
Reported PAT 1,335 919 1,093 (18.1) 18.9
Extraordinaries — — — — — We expect stable 22.1% EBITDA margin in the quarter based on 5% R&D spend. We
Adjusted PAT 1,335 919 1,093 (18.1) 18.9 expect EPS to decline by 18% yoy, given the impact of Malaysia facility commissioning
EPS (Rs/share) 2.2 1.5 1.8 (18.2) 18.9 and related depreciation charges from 2QFY18, though, we expect 19% qoq growth in
EBITDA margin (%) 20.1 21.0 22.1 193 bps 109 bps EPS.

India Strategy

Change (%)
Cipla
Net sales 35,820 39,138 40,551 13.2 3.6 We expect exports formulations to grow by 9% yoy. We expect US to report sales of
EBITDA 5,062 8,187 8,346 64.9 1.9 US$115 mn in the quarter, and expect 12% yoy growth in South Africa, benefitting from
EBIT (1,260) 2,963 5,741 NM 93.7 INR depreciation. We expect domestic formulations revenues to grow strongly by 27%
PBT (1,366) 3,401 5,805 NM 70.7 yoy, helped by base effect, though, this translates into a 5% qoq decline. We expect
Reported PAT (618) 4,005 4,251 NM 6.1 RoW and API to have steady performance.
Adjusted PAT (618) 4,005 4,251 NM 6.1 We expect steady profitability with EBITDA margin at 20.6%. We expect R&D
EPS (Rs/share) (0.8) 5.0 5.3 NM 6.1 expenditure to increase to 8.6% of sales in the quarter.
Dr Lal Pathlabs
Net sales 2,199 2,627 2,683 22.0 2.1
EBITDA 494 566 597 20.9 5.5
We expect revenues to grow 22% yoy on a low base. We expect volumes to grow 19%
EBIT 414 486 517 24.8 6.3
yoy with test mix and improvement in realizations contributing to revenue growth.
PBT 475 555 585 23.2 5.4
Reported PAT 310 360 389 25.5 8.0
Adjusted PAT 310 360 389 25.5 8.0 We expect EBITDA margin to increase modestly to 22.2% (+70 bps qoq) led by higher
EPS (Rs/share) 3.7 4.3 4.7 25.5 8.0 revenue growth.
Dr Reddy's Laboratories
Net sales 35,542 38,060 37,567 5.7 (1.3) We expect US business to decline US$14 mn qoq, given seasonality in stocking (stronger
EBITDA 5,834 7,667 7,172 22.9 (6.5) in 3QFY18), and partially reflecting Decitabine competition. We forecast 16% yoy growth
EBIT 2,630 4,696 4,082 55.2 (13.1) for India, while we expect Russia/CIS to grow by 9% yoy. We expect proprietary
PBT 3,087 5,860 4,363 41.3 (25.5) products to continue with the sluggish trends with only 5% qoq growth (ex-licensing
Reported PAT 3,125 3,344 3,436 10.0 2.8 income).
Extraordinaries — — — — — We expect EBITDA margin to decline to 19.1% (-100 bps qoq), as we expect gross
Adjusted PAT 3,125 3,344 3,436 10.0 2.8 margin to normalize back to ~55% in the quarter (versus 56.1% in 3Q), given lower
EPS (Rs/share) 18.8 20.1 20.7 10.0 2.8 injectable sales and lack of one-off licensing income in the quarter. We expect 3% qoq
EBITDA margin (%) 16.4 20.1 19.1 267 bps -106 bps and 10% yoy EPS growth.
HCG
Net sales 1,824 2,063 2,151 17.9 4.3
EBITDA 300 261 292 (2.5) 12.0 We expect revenues to increase by 18% yoy led by 11% yoy growth in mature centers
EBIT 150 78 110 (26.6) 40.6 along with ramp-up of newly set-up facilities.
PBT 117 33 35 (69.9) 6.0
Reported PAT 133 12 25 (81.1) 109.6
Extraordinaries 64 — — — — We expect EBITDA margin to increase 100 bps qoq as 3QFY18 was impacted by a
Adjusted PAT 133 12 25 (81.1) 109.6 doctors' strike (few days) in Karnataka. The 285 bps yoy decline in margin primarily
EPS (Rs/share) 1.6 0.1 0.3 (81.1) 109.6 reflects losses from the Borivali center.
Laurus Labs
Net sales 4,799 4,789 5,979 24.6 24.8
We expect ARV APIs to grow at 3% yoy, while Hep-C should grow strongly at 15% yoy (-
EBITDA 1,151 873 1,274 10.7 45.8
6% qoq). We expect non-ARVs to continue to report robust 25% growth, and forecast
EBIT 869 564 967 11.3 71.5
strong 50% yoy growth in synthesis.
PBT 806 486 852 5.6 75.4
Reported PAT 713 349 610 (14.5) 74.9
We expect gross margins to be steady at 48% and expect EBITDA margin to expand 300
Adjusted PAT 713 349 610 (14.5) 74.9
bps qoq to 21.3% driven by operating leverage benefits.
EPS (Rs/share) 6.7 3.3 5.8 (14.5) 74.9
Lupin
Net sales 42,533 39,756 40,540 (4.7) 2.0 We expect the US business to decline by US$4 mn qoq, benefitting from the recent
EBITDA 7,814 6,883 7,805 (0.1) 13.4 Tamiflu suspension and Axiron launches, which will help offset the decline in the existing
EBIT 5,140 4,080 4,966 (3.4) 21.7 portfolio. We expect Japan to grow by 20% yoy while India is likely to have another
PBT 5,187 3,824 4,690 (9.6) 22.6 strong quarter with 20% yoy growth (flat qoq). We expect South Africa to grow by 4%
Reported PAT 3,802 2,222 3,421 (10.0) 54.0 yoy, due to base effect, and expect 12% growth in RoW.
Adjusted PAT 3,802 2,222 3,421 (10.0) 54.0 We expect EBITDA margin to expand by 190 bps qoq to 19.3%. We expect EPS to
EPS (Rs/share) 8.4 4.9 7.6 (10.0) 54.0 decline by 10% yoy.
Narayana Hrudayalaya
Net sales 4,835 5,538 6,072 25.6 9.6
EBITDA 601 515 611 1.6 18.7 We expect revenues to increase by 26% yoy driven by (1) 13% yoy growth in existing
EBIT 389 280 321 (17.6) 14.7 hospitals business and (2) consolidation of Cayman entity from January 2018. We expect
PBT 391 234 160 (58.9) (31.5) mature facilities to grow at 10% yoy.
Reported PAT 223 141 107 (51.7) (23.9)
We expect EBITDA margins to increase by 80 bps qoq to 10.1% (-230bps yoy) as
Adjusted PAT 223 141 107 (51.7) (23.9)
3QFY18 revenues were impacted by doctors' strike for a few days in Karnataka. Losses
EPS (Rs/share) 1.1 0.7 0.5 (51.7) (23.9)
at Mumbai facility are likely to remain at 3QFY18 levels.

Strategy India

Change (%)
Sun Pharmaceuticals
Net sales 71,370 66,532 69,047 (3.3) 3.8 We expect Taro revenues to grow US$5 mn qoq to US$160 mn. We expect SUNP's ex-
EBITDA 15,475 14,534 13,981 (9.7) (3.8) Taro US revenues at US$195, flat qoq. We expect continued improvement in the
EBIT 12,093 11,141 10,391 (14.1) (6.7) domestic business with 14% yoy growth. We expect RoW sales to grow by 7% yoy as
PBT 13,888 11,479 10,695 (23.0) (6.8) 4QFY18 will reflect like-for-like sales post Novartis Japan portfolio acquisition in 3QFY17,
Reported PAT 11,827 3,654 8,152 (31.1) 123.1 while EMs will likely grow at 8% yoy.
Extraordinaries — — — — — We expect EBITDA margin to decline to 20.2% (-160 bps qoq), reflecting normalization
Adjusted PAT 11,827 8,784 8,152 (31.1) (7.2) of forex gains booked in 3QFY18. We expect base Taro EBITDA margins to remain flat
EPS (Rs/share) 4.9 3.7 3.4 (31.1) (7.2) in the quarter, and expect ex-Taro EBITDA margin at 18%. We expect EPS to decline by
EBITDA margin (%) 21.7 21.8 20.2 -144 bps -160 bps 31% yoy and 7% qoq.
Torrent Pharmaceuticals
Net sales 14,340 14,770 18,517 29.1 25.4
EBITDA 2,950 3,590 4,532 53.6 26.3 We expect TRP to report 29% yoy growth, largely driven by the domestic business,
where we expect a sharp 78% growth, helped by continued market growth and full
EBIT 1,980 2,650 3,232 63.2 22.0
quarter consolidation of the Unichem business (20% organic growth). We expect LatAm
PBT 2,440 2,590 2,879 18.0 11.2
to decline by 15% due to the base effect, and expect other branded markets to grow by
Reported PAT 2,060 580 2,227 8.1 283.9 10%. We expect Europe to grow at 14% yoy, and expect US to grow by US$5 mn qoq.
Adjusted PAT 2,060 580 2,227 8.1 283.9
EPS (Rs/share) 12.2 3.4 13.2 8.1 283.9 We expect EBITDA margin to be flat at 24.5%. We expect EPS to grow 8% yoy.
Real Estate
Brigade Enterprises
Net sales 5,537 4,239 5,297 (4.3) 25.0
EBITDA 1,981 1,593 1,295 (34.6) (18.7) We expect sales to continue at the same pace as in 9MFY18; no new launches were
EBIT 1,653 1,226 974 (41.1) (20.6) reported in 4QFY18.
PBT 1,130 688 546 (51.7) (20.6)
Reported PAT 824 423 450 (45.4) 6.3
Adjusted PAT 826 427 450 (45.5) 5.3 We estimate operating cash flow before land to remain negative for 4QFY18 as well.
EPS (Rs/share) — — — — —
DLF
Net sales 22,252 16,937 15,744 (29.2) (7.0)
EBITDA 7,102 7,013 4,202 (40.8) (40.1) The DCCDL transaction will reflect in changes in income statement from 4QFY18. Given
the major change, our income statement estimates for the quarter will change. We will
EBIT 5,701 5,233 2,306 (59.5) (55.9)
update detailed numbers post disclosures from the management. Note that current
PBT 1,180 (1,717) (1,083) (191.8) (36.9) estimates include DCCDL consolidation.
Tax 537 42,876 (238) (144.4) (100.6)
Reported PAT 1,427 40,874 (845) (159.2) (102.1)
Sales at Phase-5, Gurgaon is expected to show decent momentum on account of strong
Adjusted PAT 1,356 41,003 (845) (162.3) (102.1)
marketing push. Debt will increase on account of negative OCF and new land payment.
EPS (Rs/share) 0.8 23.0 (0.5) (162.3) (102.1)
Godrej Properties
Net sales 4,313 6,270 3,764 (12.7) (40.0)
EBITDA 664 462 779 17.2 68.5 Estimating quarterly financials for GPL remains somewhat difficult with the complex JV
EBIT 624 420 741 18.7 76.4 structure accounting /disclosures.
PBT 711 515 871 22.5 69.1
Reported PAT 626 259 807 28.9 211.1
Extraordinaries — — — — — GPL sold 50% stake in Godrej Two, a 1.2 mn sq. ft commercial building in Godrej Trees,
Adjusted PAT 626 259 806 28.8 211.7 Mumbai to Godrej Fund Management. Accounting of the same, is likely to drive other
EPS (Rs/share) 2.9 1.2 3.7 28.8 211.7 income.
Oberoi Realty
Net sales 2,896 3,562 3,525 21.7 (1.0)
EBITDA 1,515 1,926 1,771 16.9 (8.1) Oberoi Esquire getting Occupation Certificate (OC) could see some uptick in sales for
EBIT 1,392 1,804 1,635 17.5 (9.4) the quarter.
PBT 1,502 1,828 1,599 6.4 (12.5)
Reported PAT 1,010 1,192 1,102 9.1 (7.6)
Debt could increase further for working capital requirements in Three Sixty West and
Adjusted PAT 1,018 1,202 1,102 8.2 (8.4)
further land-related payments for Thane.
EPS (Rs/share) 3.0 3.5 3.2 8.2 (8.4)

India Strategy

Change (%)
Prestige Estates Projects
Net sales 14,437 12,723 11,541 (20.1) (9.3)
EBITDA 2,714 2,543 2,448 (9.8) (3.7)
We expect debt to increase on account of partial stake acquisitions, capex.
EBIT 2,324 2,138 1,960 (15.7) (8.3)
PBT 1,651 1,450 1,266 (23.3) (12.7)
Reported PAT 745 1,006 847 13.7 (15.8)
Prestige has launched one new project during 4QFY18, but we expect sales from
Adjusted PAT 745 1,006 847 13.7 (15.8)
ongoing projects to remain flat.
EPS (Rs/share) 0.2 0.3 0.2 13.7 (15.8)
Sobha
Net sales 5,888 6,919 6,451 9.6 (6.8)
EBITDA 1,202 1,375 1,252 4.1 (9.0) New launches during the quarter/better sales from ongoing projects will likely continue
EBIT 1,029 1,238 1,106 7.5 (10.6) the sales momentum.
PBT 757 825 748 (1.2) (9.3)
Reported PAT 470 534 481 2.4 (9.9)
Adjusted PAT 466 534 481 3.3 (9.9) Strong collections could pave for investments in new land/tie-up of new projects.
EPS (Rs/share) 4.8 5.6 5.1 4.9 (9.9)
Sunteck Realty
Net sales 1,379 2,015 2,628 90.6 30.4
EBITDA 725 891 1,129 55.9 26.8
We expect sales at Goregaon to remain steady in 4QFY18 as well.
EBIT 719 885 1,123 56.2 26.9
PBT 490 822 1,029 110.1 25.1
Reported PAT 346 535 687 98.2 28.3
Sales at BKC projects and construction progress at Goregaon will drive revenues in terms
Adjusted PAT 369 602 687 86.1 14.0
of revenue recognition.
EPS (Rs/share) 2.6 4.3 4.9 86.1 14.0
Technology
HCL Technologies
Net sales 120,530 128,080 132,592 10.0 3.5 Decomposition of revenue growth is as follows—(1) organic constant-currency (c/c)
EBITDA 26,481 29,636 30,568 15.4 3.1 revenue growth rate of 1%, (2) incremental contribution from IP deals of 0.7% or US$15
mn and (3) cross-currency tailwind of 1.3%. EBIT margin to be largely stable. Benefit of
EBIT 24,146 25,089 26,081 8.0 4.0 INR depreciation against non-USD currencies to be offset by a seasonally weak quarter
PBT 26,299 27,726 28,928 10.0 4.3 for IP business.
Reported PAT 23,213 21,931 22,853 (1.5) 4.2 Expect company to guide for 9.5-11.5% USD revenue growth for FY2019. C/c revenue
growth to be lower and includes inorganic component. We expect c/c organic growth
guidance of 6.2-8.2%. Expect company to guide for stable margins. Expect investor
Adjusted PAT 23,213 21,931 22,853 (1.5) 4.2 focus on (1) progress on deal closures in IMS, areas, which have witnessed slowdown,
EPS (Rs/share) 16.4 15.5 16.2 (1.5) 4.2 (2) how the company intends to catch up with competition in digital, (3) M&A strategy in
light of multiple acquisitions (IP partnerships) announced by the company and (4) impact
EBITDA margin (%) 22.0 23.1 23.1 108 bps -9 bps of the US tax reform.
Hexaware Technologies
Net sales 9,605 10,048 10,382 8.1 3.3
EBITDA 1,623 1,599 1,656 2.0 3.6 We expect constant-currency revenue growth of 2.2%. Growth will be led by ramp-up of
EBIT 1,466 1,440 1,467 0.1 1.9 net new deal wins. Margins will be stable and in a narrow band on qoq basis.
PBT 1,494 1,572 1,618 8.3 2.9
Reported PAT 1,139 1,211 1,281 12.5 5.8
Extraordinaries — — — — — Performance of large accounts will be closely monitored after hiccups in the past two
quarters. Expect investor focus on (1) performance of enterprise services after the
Adjusted PAT 1,139 1,211 1,281 12.5 5.8
company inducted new leaders to drive the business, (2) momentum in TCVs of net new
EPS (Rs/share) 3.8 4.0 4.3 12.5 5.8 business, and (3) deal wins and progress in IMS and BPO practices.
Infosys
Net sales 171,200 177,940 181,152 5.8 1.8
We expect constant-currency revenue growth of 0.5% and cross-currency tailwind of
EBITDA 46,580 48,170 48,808 4.8 1.3
100 bps. 4Q is the seasonally weakest quarter for Infosys. Expect flattish EBIT margin;
EBIT 42,120 43,190 43,699 3.7 1.2
benefit of INR depreciation will be offset by weak revenue growth.
PBT 49,580 52,810 49,435 (0.3) (6.4)
Reported PAT 36,030 51,290 35,593 (1.2) (30.6) We expect Infosys to guide for constant- currency revenue growth of 6-8% and maintain
Extraordinaries — 14,320 — — (100.0) EBIT margin guidance band of 23-25% for FY2019. Expect investor focus on strategy of
Adjusted PAT 36,030 36,970 35,593 (1.2) (3.7) the new CEO, especially on the following fronts (1) focus on development/promotion of
EPS (Rs/share) 15.8 16.2 16.4 3.8 1.3 proprietary software versus adoption of third-party products/platforms, (2) M&A strategy
EBITDA margin (%) 27.2 27.1 26.9 -27 bps -13 bps and (3) focus and strategy for revival of consulting practice.

Strategy India

Change (%)
L&T Infotech
Net sales 16,772 18,838 19,792 18.0 5.1 We expect c/c revenue growth of 3.4% and cross-currency tailwind of 70 bps. LTI
management guided for sequential revenue growth excluding incremental contribution
EBITDA 3,188 3,216 3,463 8.6 7.7 from Syncordis acquisition. We expect US$4.2 mn revenue contribution due to full
quarter consolidation as against US$1.9 mn recognized in 3QFY18. Expect organic c/c
EBIT 2,772 2,813 3,036 9.5 7.9 revenue growth of 2.4%. Expect 40 bps EBIT margin increase due to—(1) depreciation
of INR against non-USD currencies and (2) lower contribution from pass-through
PBT 3,275 3,695 3,733 14.0 1.0 revenues.
Reported PAT 2,544 2,828 2,190 (13.9) (22.6) Expect strong forex gains of Rs541 mn (Rs772 mn in December 2017) resulting from
maturity of forward contracts . Our estimates include non-recurring charge of US$10 mn
Extraordinaries — — (650) — — resulting from mutual settlement with a large client. This amount will be paid out through
service credits over the next two years. Expect adjusted net profit of Rs2.84 bn to grow
Adjusted PAT 2,544 2,828 2,840 11.6 0.4
1% sequentially and 11% yoy. Expect investor focus on (1) demand outlook, especially
EPS (Rs/share) 14.6 16.2 16.2 11.1 0.4 in the top-10 accounts, (2) investments and positioning in digital and progress in
automation, (3) capital allocation, (4) M&A strategy and (5) hedging gains carried
EBITDA margin (%) 19.0 17.1 17.5 -152 bps 42 bps forward in OCI.
Mindtree
Net sales 13,181 13,777 14,376 9.1 4.4 We expect revenue growth of 3% in constant currency driven by ramp-up in deals won
EBITDA 1,869 2,074 2,191 17.2 5.6 over the past 2-3 quarters. Expect cross-currency tailwind of 70 bps. Management has
EBIT 1,401 1,655 1,739 24.1 5.1 guided for strong 4QFY18. Expect stable EBIT margin after steep expansion in 3QFY18.
PBT 1,259 1,668 1,890 50.1 13.3 INR depreciation and strong revenue growth to help.
Reported PAT 972 1,415 1,418 45.9 0.2
Extraordinaries — — — — — We expect healthy TCV signings led by conversion of deals in the pipeline. Mindtree's
customer relationships, progress in digital and engagement with deal advisories continue
Adjusted PAT 972 1,415 1,418 45.9 0.2
to be strong. We expect investor focus on (1) deal wins and pipeline, (2) outlook for
EPS (Rs/share) 5.8 8.6 8.6 49.2 0.2 FY2019E and (3) performance of acquired entities, viz. Bluefin and Magnet 360.
Mphasis
Net sales 15,059 16,607 16,607 10.3 —
EBITDA 2,384 2,713 2,713 13.8 — We expect c/c growth of 3.2% driven by direct core segment. Expect stable margin on
EBIT 2,200 2,566 2,566 16.6 — quarterly basis.
PBT 2,668 2,891 2,891 8.4 —
Reported PAT 1,841 2,150 2,150 16.8 —
Extraordinaries (93) — — — — Investor focus will remain on (1) deal wins in direct channel and confidence on
sustenance of growth in direct core and DXC channel, (2) outlook for Digital Risk, (3)
Adjusted PAT 1,934 2,150 2,150 11.2 —
deal progress from Blackstone portfolio companies, (4) sustainability of hedging gains
EPS (Rs/share) 9.2 11.1 11.1 21.0 — and its impact on margins in FY2019 and (5) dividend policy and cash utilization strategy.
TCS
Net sales 296,420 309,040 317,958 7.3 2.9 We expect constant-currency (c/c) revenue growth of 1.3% and cross-currency tailwind of
EBITDA 81,330 82,880 88,319 8.6 6.6 130 bps. Growth will be aided by ramp-up of some of the deals won in 2HFY18. Expect
EBIT 76,270 77,810 82,167 7.7 5.6 EBIT margin to recover 25 bps driven by operational efficiency and benefits of INR
PBT 86,160 86,450 90,100 4.6 4.2 depreciation against non-USD currencies.
Reported PAT 66,080 65,310 67,947 2.8 4.0 Net profit growth is muted on yoy comparison due to completion of buyback that has
Extraordinaries — — — — — impacted other income. EPS growth is higher at 6% yoy. We expect investor focus on (1)
Adjusted PAT 66,080 65,310 67,947 2.8 4.0 demand outlook, especially in BFS vertical (2) ramp-up timeframe of recently won large
EPS (Rs/share) 33.5 34.1 35.5 5.8 4.0 deals, (3) EBIT margin outlook in light of ramp-up of recently won large deals, and (4)
EBITDA margin (%) 27.4 26.8 27.8 33 bps 95 bps impact of the US tax code.
Tech Mahindra
Net sales 74,950 77,760 79,983 6.7 2.9 Expect c/c revenue growth of 1% and cross-currency tailwind of 120 bps. Growth will be
largely driven by enterprise vertical. The telecom vertical will continue to be weak.
EBITDA 8,987 12,647 13,561 50.9 7.2 Revenues include incremental US$7 mn from IP partnership (US$13 mn overall); organic
EBIT 6,152 9,905 10,616 72.6 7.2 c/c growth for the quarter will be muted at 0.4%. EBIT margin will improve by 70 bps
driven by Comviva and contribution from IP partnership. We forecast forex gain of US$7
PBT 8,212 11,815 11,344 38.1 (4.0) mn, down from US$16 mn in 3QFY18.
Reported PAT 5,879 9,432 8,676 47.6 (8.0)

4QFY17 had one-off items to the extent of US$20 mn at the EBIT level (180 bps impact)
Extraordinaries — — — — — resulting from termination of unprofitable contracts of LCC. Low base of previous year
helps yoy net profit growth comparison. We expect investors to focus on (1) demand
Adjusted PAT 5,879 9,432 8,676 47.6 (8.0)
outlook, especially for telecom vertical, (2) implications on margins from wage revision
EPS (Rs/share) 6.0 9.6 8.9 46.8 (8.0) and Comviva seasonality drag in 1QFY19, (3) pricing outlook from top accounts and (4)
M&A strategy.
Wipro
Net sales 144,702 136,815 140,281 (3.1) 2.5 Expect constant-currency revenue growth of 1.5% and cross-currency tailwind of 100 bps
EBITDA 28,925 25,054 29,143 0.8 16.3 resulting in 2.5% growth in USD terms. Growth will likely be led by financial services
vertical. 3QFY18 EBIT margin was impacted to the extent of 240 bps due to a client
EBIT 24,826 19,775 23,507 (5.3) 18.9 insolvency. Expect adjusted EBIT margin to increase largely due to depreciation of INR
PBT 29,409 24,704 27,020 (8.1) 9.4 against non-USD currencies.
Reported PAT 22,609 19,359 20,970 (7.3) 8.3
Expect c/c revenue growth guidance of 0-2% for June 2018 quarter. June quarter is
Extraordinaries — — — — — seasonally weak for Wipro. We expect investor focus on (1) convergence of growth with
Adjusted PAT 22,609 19,359 20,970 (7.3) 8.3 industry growth rate, (2) state of demand from weak utilities, healthcare and
EPS (Rs/share) 4.7 4.0 4.7 (0.2) 15.6 communications vertical, (3) measures taken to defend share in core areas of
competence, i.e. IMS, ERD and BPO and (4) drivers of margin expansion.

India Strategy

Change (%)
Telecom
Bharti Airtel
Net sales 219,346 203,186 196,146 (10.6) (3.5)
Jio’s pricing moves in the month of January 2018, impact of international termination
EBITDA 78,600 74,688 67,053 (14.7) (10.2)
rate cut effective February 1, 2018, and continued ARPU downtrading are likely to reflect
EBIT 29,182 26,313 17,221 (41.0) (34.6)
in another quarter of sharp sequential revenue decline.
PBT 10,006 6,127 (3,791) (137.9) (161.9)
Reported PAT 3,734 3,060 (3,769) (200.9) (223.2)
Extraordinaries (730) (2,395) — — — Our ARPU forecast for Bharti's India wireless is Rs115 (down 8.6% qoq). Overall India
EBITDA is likely to decline 24% yoy to Rs49 bn with the weakness not limited to the
Adjusted PAT 4,464 5,455 (3,769) (184.4) (169.1)
wireless segment. Consolidated EBITDA should be weak despite healthy trends
EPS (Rs/share) 1.1 1.4 (0.9) (184.4) (169.1) sustaining for the Africa operations.
Bharti Infratel
Net sales 35,204 36,553 35,717 1.5 (2.3)
EBITDA 15,723 15,982 15,842 0.8 (0.9) Continued exits in the challenger pack are likely to pressure BHIN’s financials further. Our
EBIT 10,039 10,087 9,925 (1.1) (1.6) EBITDA estimate of Rs15.8 bn reflects a flat print both qoq and yoy.
PBT 10,166 10,072 10,257 0.9 1.8
Reported PAT 5,966 5,854 5,955 (0.2) 1.7
Extraordinaries — — — — — We expect another soft quarter for BHIN on account of (1) full-quarter revenue impact of
Adjusted PAT 5,966 5,854 5,955 (0.2) 1.7 tenancies lost in 3QFY18, (2) further loss in tenancies in 4QFY18, especially Aircel and
EPS (Rs/share) 3.2 3.2 3.2 (0.2) 1.7 (3) still-soft gross tenancy additions from Jio and the incumbents.
IDEA
Net sales 81,261 65,096 61,239 (24.6) (5.9)
Jio’s pricing moves in the month of January 2018, impact of international termination
EBITDA 21,199 12,234 9,448 (55.4) (22.8)
rate cut effective February 1, 2018, and continued ARPU downtrading are likely to reflect
EBIT 1,314 (9,181) (13,005) (1,089.8) 41.7
in another quarter of sharp sequential revenue decline.
PBT (8,052) (20,671) (24,664) 206.3 19.3
Reported PAT (3,277) (12,845) (15,330) 367.8 19.3
Extraordinaries — — — — — Our ARPU forecasts for Idea's India wireless is Rs104 (down 9% qoq). We expect a
sharper 23% qoq and 55% yoy decline in Idea’s EBITDA to Rs 9.5 bn. We have built in
Adjusted PAT (3,277) (12,845) (15,330) 367.8 19.3
some network cost reversals that one typically sees in Idea’s 4Q prints into our
EPS (Rs/share) (0.9) (3.6) (4.3) 367.8 19.3 numbers.
Tata Communications
Net sales 42,937 41,146 41,563 (3.2) 1.0
EBITDA 5,024 6,128 6,070 20.8 (0.9)
We expect a stable unexciting quarter with EBITDA likely to stay flat qoq.
EBIT 347 1,400 1,259 263.0 (10.1)
PBT 578 1,244 800 38.4 (35.7)
Reported PAT (9,833) 101 115 NM 13.5
EBITDA improvement in growth services is mitigated by likely decline in traditional
Adjusted PAT 800 101 115 (85.6) 13.5
services margins.
EPS (Rs/share) 2.8 0.4 0.4 (85.6) 13.5
Utilities
CESC
Net sales 19,130 17,760 16,309 (14.7) (8.2)
EBITDA 5,450 3,840 4,720 (13.4) 22.9 Subdued quarter in the absence of growth in unit sales at 2,105 MU (+6% yoy, -10%
EBIT 4,290 2,750 3,682 (14.2) 33.9 qoq) will curtail the overall return profile.
PBT 3,790 1,970 2,872 (24.2) 45.8
Reported PAT 2,950 1,540 2,316 (21.5) 50.4
Earnings are not comparable with 4QFY17 as the base quarter includes deferral of
Adjusted PAT 2,950 1,540 2,316 (21.5) 50.4
revenues from 3QFY17 due to delay in tariff approvals.
EPS (Rs/share) 23.6 12.3 18.5 (21.5) 50.4
JSW Energy
Net sales 18,621 19,932 21,027 12.9 5.5
EBITDA 5,869 5,853 5,919 0.9 1.1 Improvement in generation from thermal assets at 4.6 BU (+25% yoy, +8% qoq) will be
EBIT 3,490 3,446 3,497 0.2 1.5 partly offset by higher prices of imported coal.
PBT 252 920 997 294.7 8.3
Reported PAT 248 505 475 91.9 (6.0)
Extraordinaries 22 (217) (224) (1,137.5) 3.4
Prices of imported coal have risen to US$94/ton (+13% yoy) in 4QFY18 compared to
Adjusted PAT 226 722 699 209.4 (3.2)
US$83/ton in 4QFY17.
EPS (Rs/share) 0.1 0.4 0.4 209.4 (3.2)

Strategy India

Change (%)
NHPC
Net sales 13,624 14,979 12,112 (11.1) (19.1)
EBITDA 2,231 7,843 5,172 131.9 (34.1) Modest decline in generation at 3.1 BU (-4% yoy, -6% qoq) in a seasonally weak
EBIT (1,297) 4,374 1,569 NM (64.1) quarter.
PBT 1,966 9,492 1,593 (19.0) (83.2)
Reported PAT 1,684 6,879 1,224 (27.3) (82.2)
Adjusted PAT 1,684 6,879 1,224 (27.3) (82.2)
EPS (Rs/share) 0.2 0.6 0.1 (27.3) (82.2)
NTPC
Net sales 204,167 207,744 227,445 11.4 9.5
EBITDA 54,628 52,770 63,782 16.8 20.9 Generation growth of 5.7% yoy to 67 BU owing to (1) asset commercialization of 4.8
EBIT 38,566 33,956 44,479 15.3 31.0 GW in trailing twelve months and (2) improved demand during the quarter.
PBT 37,909 25,848 36,989 (2.4) 43.1
Reported PAT 20,794 23,608 26,728 28.5 13.2
Extraordinaries (7,830) 4,574 — — —
Earnings are not comparable with 4QFY17 owing to prior period revenues of Rs5.2 bn
Adjusted PAT 28,624 19,034 26,728 (6.6) 40.4
accounted for in the base quarter.
EPS (Rs/share) 3.5 2.3 3.2 (6.6) 40.4
Power Grid
Net sales 67,120 75,070 77,310 15.2 3.0
EBITDA 56,185 67,383 69,741 24.1 3.5 Revenue growth aided by aggressive capitalization of Rs326 bn (+56% yoy) in trailing 12
EBIT 35,552 44,197 46,074 29.6 4.2 months.
PBT 24,247 27,424 27,781 14.6 1.3
Reported PAT 19,164 21,428 22,153 15.6 3.4
We factor in asset capitalization of Rs94 bn in 4QFY18 to meet our full-year estimate of
Adjusted PAT 19,164 21,428 22,153 15.6 3.4
Rs290 bn for FY2018 (Rs196 bn in 9MFY18).
EPS (Rs/share) 3.7 4.1 4.2 15.6 3.4
Reliance Power
Net sales 24,665 24,947 25,484 3.3 2.2
EBITDA 10,656 11,958 11,526 8.2 (3.6) Weak generation at Butibori and Rosa during the quarter, offset by better generation at
EBIT 8,927 10,076 9,541 6.9 (5.3) Sasan.
PBT 2,854 3,548 3,037 6.4 (14.4)
Reported PAT 2,159 2,803 2,173 0.7 (22.5)
Adjusted PAT 2,159 2,803 2,173 0.7 (22.5) Cost-plus tariffs at Rosa and Butibori will ensure earnings stability.
EPS (Rs/share) 0.8 1.0 0.8 0.7 (22.5)
Tata Power
Net sales 19,505 18,418 18,984 (2.7) 3.1
EBITDA 5,215 5,322 6,263 20.1 17.7 Inclusion of other operating income in revenues will distort revenue and EBITDA
EBIT 3,615 3,703 4,640 28.4 25.3 comparisons with 4QFY17.
PBT 1,542 2,791 3,105 101.3 11.3
Reported PAT (5,934) 5,243 2,006 NM (61.7)
Extraordinaries (6,515) 220 — — —
Adjusted PAT 580 5,023 2,006 245.7 (60.1) Sequential decline in PAT on account of tax reversal of Rs2.8 bn in 3QFY18.
EPS (Rs/share) 0.3 2.4 — (100.0) (100.0)

India
Exhibit 6: Kotak Institutional Equities: Valuation summary of KIE universe stocks
36
Target O/S ADVT

Price (Rs) price Upside Mkt cap. shares EPS (Rs) EPS growth (%) P/E (X) EV/EBITDA (X) P/B (X) RoE (%) Dividend yield (%) 3mo
Company Rating 5-Apr-18 (Rs) (%) (Rs bn) (US$ bn) (mn) 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E (US$ mn)
Automobiles
Amara Raja Batteries REDUCE 804 780 (2.9) 137 2.1 171 29 34 39 1.7 20.2 14.5 28.2 23.5 20.5 15.0 12.8 11.2 4.6 4.0 3.4 17.4 18.1 17.9 0.5 0.6 0.7 6.6
Apollo Tyres BUY 293 335 14.5 167 2.6 541 13 20 25 (39.9) 52.7 25.7 22.6 14.8 11.7 12.2 8.8 7.1 1.7 1.6 1.5 8.4 11.6 13.1 1.0 0.9 0.9 12.8
Ashok Leyland ADD 147 140 (4.8) 430 6.6 2,926 4.9 6.0 7.9 (0.7) 20.9 32.0 29.7 24.6 18.6 17.2 13.9 10.7 6.1 5.3 4.5 22.0 23.0 25.9 1.0 1.2 1.6 34.9
Bajaj Auto SELL 2,808 2,900 3.3 813 12.5 289 147 166 182 11.4 12.6 9.8 19.1 16.9 15.4 13.1 11.4 9.9 4.2 3.7 3.3 23.5 23.4 22.8 2.1 2.4 2.6 14.9
Balkrishna Industries ADD 1,178 1,290 9.5 228 3.5 193 40 53 64 7.2 30.8 22.0 29.2 22.3 18.3 15.6 12.3 10.0 5.4 4.4 3.6 20.1 21.8 21.9 0.4 0.4 0.5 7.0
Bharat Forge SELL 727 650 (10.6) 338 5.2 466 20 24 27 33.2 25.0 10.8 37.1 29.7 26.8 20.1 16.7 15.0 7.1 6.0 5.2 20.5 21.9 20.8 0.6 0.8 0.9 14.6
CEAT ADD 1,646 1,860 13.0 67 1.0 40 65 110 125 (28.8) 68.2 13.4 25.2 15.0 13.2 11.9 9.1 7.7 2.5 2.2 1.9 10.5 15.8 15.6 0.5 0.8 0.9 15.1
Eicher Motors SELL 29,678 24,000 (19.1) 809 12.4 27 781 907 1,087 27.4 16.2 19.9 38.0 32.7 27.3 26.9 22.5 18.6 14.5 10.7 8.2 44.7 37.7 34.0 0.1 0.1 0.1 27.4
Escorts BUY 892 1,020 14.4 76 1.7 89 34 47 60 50.1 37.9 28.1 26.3 19.0 14.9 14.7 11.3 9.0 3.2 2.8 2.4 12.1 14.7 16.3 0.6 0.8 1.0 21.2
Exide Industries SELL 236 205 (13.2) 201 3.1 850 8 10 11 1.6 14.7 11.1 28.5 24.8 22.3 16.3 14.1 12.5 3.8 3.4 3.1 13.7 14.5 14.7 1.3 1.3 1.3 6.4
Hero Motocorp SELL 3,782 3,100 (18.0) 755 11.6 200 178 194 208 5.3 8.9 7.4 21.2 19.5 18.1 13.6 12.4 11.3 6.7 5.9 5.2 33.3 32.3 30.6 2.7 2.6 2.8 20.2
Mahindra CIE Automotive ADD 223 260 16.6 84 1.3 378 10 12 14 107.0 24.7 17.4 23.2 18.6 15.9 11.6 9.1 7.7 2.3 2.0 1.8 10.4 11.5 12.0 — — — 1.2
Mahindra & Mahindra BUY 771 945 22.5 959 14.7 1,138 39 43 49 19.9 9.5 13.2 19.5 17.9 15.8 13.6 11.8 10.3 2.9 2.6 2.3 15.9 15.4 15.5 1.0 1.1 1.3 28.8
Maruti Suzuki ADD 9,133 10,000 9.5 2,759 42.4 302 268 339 406 10.5 26.2 19.9 34.0 27.0 22.5 19.6 15.3 12.4 6.6 5.6 4.8 20.8 22.5 23.0 0.7 0.9 1.1 82.6
Motherson Sumi Systems SELL 339 265 (21.8) 714 11.0 2,105 8 11 14 9.3 30.4 24.3 40.2 30.8 24.8 15.0 12.1 9.8 7.6 6.6 5.6 20.1 22.9 24.4 0.7 1.0 1.2 20.4
MRF ADD 77,013 77,000 (0.0) 327 5.0 4 2,756 3,988 4,511 (21.4) 44.7 13.1 27.9 19.3 17.1 12.9 9.4 8.2 3.3 2.9 2.5 12.7 15.9 15.5 0.1 0.1 0.1 9.4
Schaeffler India BUY 5,431 6,000 10.5 90 1.4 17 143 172 209 22.0 19.8 21.7 37.9 31.7 26.0 22.4 19.0 15.3 5.3 4.7 4.2 15.0 15.8 17.0 0.3 0.6 0.8 0.5
SKF REDUCE 1,825 1,700 (6.8) 94 1.4 51 59 69 81 28.5 15.8 18.2 30.7 26.5 22.4 19.6 16.9 14.1 5.2 4.6 4.1 17.0 17.5 18.2 1.0 1.1 1.3 0.7
Suprajit Engineering SELL 288 235 (18.5) 40 0.6 140 9 11 12 0.5 20.3 17.6 32.7 27.2 23.1 18.4 15.8 13.5 6.6 5.5 4.6 21.8 22.0 21.6 0.5 0.6 0.7 0.3
Tata Motors BUY 364 520 43.0 1,235 17.8 3,396 23 46 51 (17.6) 101.1 10.1 15.9 7.9 7.2 4.9 3.6 3.3 1.8 1.4 1.2 12.1 20.1 18.3 — — — 54.2
Timken SELL 734 660 (10.1) 50 0.8 68 14 22 27 1.4 50.2 25.0 50.7 33.7 27.0 28.4 19.1 15.4 7.1 6.3 5.4 14.9 19.7 21.6 0.2 0.9 1.1 0.6
TVS Motor SELL 649 410 (36.8) 308 4.7 475 14 18 22 31.4 30.3 18.8 45.9 35.2 29.7 25.3 19.9 17.1 11.6 9.6 7.9 27.6 29.9 29.3 0.7 0.8 1.0 10.6
WABCO India SELL 7,997 6,130 (23.3) 152 2.3 19 134 176 215 18.7 31.5 22.4 59.9 45.5 37.2 39.3 29.7 24.0 10.1 8.4 7.0 18.3 20.2 20.6 0.1 0.2 0.2 0.9
Automobiles Neutral 10,832 166 2.9 36.4 15.0 26.5 19.4 16.9 12.3 9.5 8.2 4.4 3.7 3.2 16.5 19.1 18.8 0.8 0.9 1.1 391.1
Banks
Axis Bank REDUCE 503 600 19.3 1,291 19.9 2,568 10 28 41 (36.5) 182.0 50.8 51.6 18.3 12.1 — — — 2.2 1.9 1.7 4.1 10.1 13.6 0.3 0.8 1.2 64.7
Bank of Baroda NR 148 — — 341 5.2 2,310 4 27 30 (40.4) 647.6 11.1 41.4 5.5 5.0 — — — 1.5 1.1 0.9 2.2 15.5 15.3 0.5 3.6 4.0 44.2
Bank of India ADD 111 140 26.4 131 2.0 1,341 (21) 19 30 (42.8) 191.0 54.3 (5.3) 5.8 3.7 — — — 2.6 1.8 1.2 (10.5) 9.2 13.1 (3.8) 3.5 5.3 18.7
Canara Bank ADD 283 350 23.6 169 2.6 733 2 51 63 (91.8) 3,202.9 23.5 184.5 5.6 4.5 — — — 1.2 1.0 0.7 0.3 8.9 10.0 — 0.9 1.2 30.8
City Union Bank ADD 176 180 2.0 117 1.8 661 8 10 11 1.0 19.3 11.6 20.9 17.5 15.7 — — — 3.2 2.8 2.4 14.7 15.6 15.4 0.9 1.0 1.1 2.8
DCB Bank ADD 170 210 23.4 52 0.8 308 8 10 13 12.9 24.1 34.9 21.6 17.4 12.9 — — — 2.1 1.9 1.7 10.7 11.1 13.4 — — 0.6 3.9
Equitas Holdings BUY 150 180 20.0 51 0.8 338 0.7 4.4 8.4 (85.1) 529.3 89.8 213.7 34.0 17.9 — — — 2.4 2.2 2.0 1.1 6.4 11.1 — — — 5.5
Federal Bank BUY 94 140 49.7 184 2.8 1,832 5.4 7.8 9.0 13.0 43.1 15.2 17.2 12.0 10.4 — — — 1.5 1.4 1.2 9.4 11.2 11.8 1.1 1.6 1.9 18.4
HDFC Bank REDUCE 1,909 1,900 (0.5) 4,954 76.2 2,686 65 83 98 14.6 27.2 19.0 29.3 23.1 19.4 — — — 4.1 3.6 3.2 16.2 16.5 17.2 0.7 0.8 1.0 47.3
ICICI Bank BUY 279 400 43.5 1,791 27.6 6,408 9 16 25 (40.3) 70.0 58.9 30.5 17.9 11.3 — — — 2.1 1.9 1.6 5.8 9.2 13.4 0.7 1.1 1.8 100.9
IDFC Bank NR 50 — — 169 2.6 3,393 3.0 4.0 5.0 (0.5) 35.2 23.5 16.5 12.2 9.9 — — — 1.1 1.0 0.9 6.7 8.6 9.9 1.2 1.6 2.0 13.4
IndusInd Bank REDUCE 1,837 1,750 (4.7) 1,103 17.0 598 59 71 82 24.0 18.5 16.9 30.9 26.1 22.3 — — — 4.8 3.9 3.4 16.6 17.5 16.2 — 0.5 0.6 35.7
J&K Bank BUY 58 110 88.5 32 0.5 521 5 15 17 115.9 210.7 11.0 11.7 3.8 3.4 — — — 0.7 0.6 0.5 4.5 13.1 13.1 1.8 5.6 6.2 0.6
Karur Vysya Bank ADD 103 135 31.4 75 1.1 728 5 8 15 (52.7) 75.9 80.4 21.8 12.4 6.9 — — — 1.5 1.4 1.2 6.1 9.4 15.5 1.1 2.0 3.6 2.8
Punjab National Bank ADD 97 150 54.6 235 3.6 2,426 (13) (5) 20 (308.0) 62.3 516.2 (7.5) (19.9) 4.8 — — — 1.3 1.0 0.8 (7.9) (2.9) 11.5 (2.9) (1.1) 4.5 91.7
RBL Bank SELL 497 420 (15.4) 208 3.2 408 15 19 24 26.9 24.2 30.6 32.9 26.5 20.3 — — — 3.2 2.9 2.7 11.3 11.2 13.2 0.5 0.6 0.7 10.4
State Bank of India BUY 259 380 46.5 2,238 34.4 8,632 (0) 22 45 (100.1) 258,436.7 108.5 (30,775.1) 11.9 5.7 — — — 2.2 1.7 1.2 (0.0) 8.5 15.9 1.1 1.2 1.3 114.6
Ujjivan Financial Services ADD 380 420 10.7 46 0.7 119 (2) 18 21 (110.1) 1,153.9 14.9 (216.3) 20.5 17.9 — — — 2.7 2.4 2.1 (1.2) 12.0 12.4 (0.0) 0.5 0.6 7.3
Union Bank ADD 100 150 49.5 86 1.3 726 (55) 20 34 (776.6) 136.2 73.3 (1.8) 5.1 2.9 — — — 3.4 2.7 0.9 (20.2) 7.8 12.3 — 3.0 5.1 15.6
YES Bank SELL 313 295 (5.8) 721 11.1 2,282 16 17 20 12.3 6.3 16.1 19.1 18.0 15.5 — — — 3.0 2.6 2.3 15.9 14.9 15.3 0.9 0.9 1.1 69.1
Banks Attractive 13,995 215 (43.6) 205.8 55.0 49.7 16.3 10.5 1.8 1.6 1.4 3.5 9.9 13.6 0.6 1.0 1.4 698.6
Source: Company, Bloomberg, Kotak Institutional Equities estimates
Strategy
Strategy
Kotak Institutional Equities: Valuation summary of KIE universe stocks
Target O/S ADVT

NBFCs
Bajaj Finance REDUCE 1,916 1,750 (8.6) 1,107 17.0 573 44 61 76 31.5 37.7 25.4 43.4 31.5 25.1 — — — 6.7 5.7 4.7 19.5 19.6 20.6 1.3 1.7 2.2 28.7
Bajaj Finserv ADD 5,441 5,600 2.9 866 13.3 159 184 222 274 20.3 20.5 23.2 29.5 24.5 19.9 — — — 4.2 3.6 3.1 16.1 15.8 16.7 0.3 0.3 0.3 14.7
Bharat Financial Inclusion NA 1,129 — — 157 2.4 138 32 52 64 51.4 62.3 23.3 35.5 21.9 17.7 — — — 5.4 4.2 3.4 16.5 21.8 21.2 — — — 12.0
Cholamandalam REDUCE 1,525 1,400 (8.2) 238 3.7 156 61 73 87 33.7 18.0 19.6 24.8 21.0 17.6 — — — 4.9 4.1 3.5 20.3 20.1 20.2 0.4 0.6 0.7 6.5
HDFC ADD 1,824 2,000 9.6 3,058 47.0 1,663 75 57 67 51.9 (24.7) 18.1 24.2 32.2 27.3 — — — 4.7 4.2 3.8 23.6 14.0 14.7 1.5 1.1 1.3 104.4
HDFC Standard Life Insurance REDUCE 498 385 (22.7) 1,002 15.4 2,007 5 6 7 18.2 20.5 10.5 94.7 78.6 71.2 — — — 23.4 20.9 18.7 26.0 28.1 27.7 0.3 0.3 0.4 18.1
ICICI Lombard SELL 789 580 (26.5) 358 5.5 451 20 25 29 26.2 26.5 16.3 40.2 31.8 27.3 — — — 8.2 6.9 5.9 21.9 23.6 23.2 0.6 0.8 0.9 4.5
ICICI Prudential Life BUY 394 445 13.0 565 8.7 1,435 12 13 14 1.7 9.4 6.5 33.0 30.2 28.4 — — — 8.1 7.6 7.3 25.6 26.1 26.4 1.7 2.1 2.5 9.9
IIFL Holdings SELL 737 600 (18.6) 235 3.6 318 29 33 40 34.5 14.9 19.3 25.4 22.1 18.5 — — — 4.6 4.0 3.4 19.1 18.6 19.2 0.8 1.0 1.2 5.2
L&T Finance Holdings REDUCE 172 160 (6.7) 342 5.3 1,895 7 9 10 33.7 25.3 12.8 23.3 18.6 16.5 — — — 3.6 3.2 2.8 16.4 18.1 17.8 1.1 1.2 1.2 13.4
LIC Housing Finance ADD 563 605 7.4 284 4.4 505 44 49 60 3.6 11.1 22.5 12.9 11.6 9.5 — — — 2.0 1.7 1.5 18.4 17.6 18.6 1.1 1.3 1.5 16.4
Mahindra & Mahindra Financial REDUCE 487 450 (7.5) 301 4.6 614 16 21 25 124.0 34.9 16.7 30.7 22.7 19.5 — — — 3.6 3.3 3.0 12.4 13.7 14.7 1.1 1.5 1.7 13.8
Max Financial Services BUY 459 650 41.6 123 1.9 267 6 6 6 4.0 7.0 0.5 76.6 71.6 71.2 — — — — — — 8.6 8.7 8.4 0.5 0.6 0.6 5.9
Muthoot Finance ADD 433 500 15.5 173 2.7 400 41 37 41 39.3 (10.0) 11.8 10.5 11.7 10.5 — — — 2.2 1.9 1.7 23.0 17.7 17.3 1.9 1.7 1.9 5.2
PFC ADD 88 130 47.4 233 3.6 2,640 25 21 27 207.9 (14.4) 28.5 3.6 4.2 3.2 — — — 0.8 0.8 0.7 17.0 13.2 15.4 8.4 7.2 9.3 10.7
PNB Housing Finance ADD 1,288 1,300 0.9 215 3.3 168 51 62 74 60.5 23.0 19.1 25.4 20.7 17.4 — — — 3.5 3.1 2.7 14.3 15.5 16.3 0.3 0.3 0.3 4.1
Rural Electrification Corp. REDUCE 130 155 19.0 257 4.0 1,975 26 22 24 (18.3) (14.2) 6.0 5.0 5.9 5.5 — — — 0.8 0.9 0.8 14.5 11.3 11.0 4.2 3.6 3.9 11.9
SBI Life Insurance BUY 675 800 18.5 675 10.4 1,000 12 15 18 25.5 21.6 22.9 56.4 46.3 37.7 — — — 10.4 8.8 7.3 20.1 20.6 21.2 0.3 0.3 0.4 4.3
Shriram City Union Finance ADD 2,350 2,275 (3.2) 155 2.4 66 107 147 172 26.9 37.2 17.2 22.0 16.0 13.7 — — — 2.9 2.6 2.2 13.2 16.0 16.3 0.5 0.7 0.9 1.1
Shriram Transport REDUCE 1,538 1,360 (11.6) 349 5.4 227 85 102 114 52.5 21.2 11.2 18.2 15.0 13.5 — — — 2.9 2.5 2.2 15.8 16.7 16.2 0.8 0.9 1.0 16.3
NBFCs Neutral 10,733 165 38.9 0.9 18.4 22.4 22.2 18.8 3.8 3.4 3.0 17.2 15.3 16.1 1.1 1.0 1.2 698.6
Cement
ACC SELL 1,552 1,560 0.5 292 4.5 188 49 61 84 41.9 24.5 38.8 31.9 25.6 18.4 17.0 14.6 10.6 3.1 2.9 2.6 10.2 11.7 14.8 1.1 1.1 1.1 9.0
Ambuja Cements REDUCE 238 260 9.1 473 7.3 1,986 8 8 11 29.7 12.2 30.0 31.7 28.3 21.8 10.7 9.5 7.4 2.3 2.2 2.1 7.4 7.9 9.8 1.5 1.5 1.5 12.1
Dalmia Bharat ADD 2,922 2,980 2.0 261 4.0 89 65 117 160 68.5 78.8 36.6 44.7 25.0 18.3 14.0 10.1 7.9 4.2 3.6 3.0 10.5 15.7 18.1 0.1 0.1 0.1 7.5
Grasim Industries ADD 1,094 1,275 16.5 719 11.1 657 52 49 67 (22.9) (5.5) 35.7 20.9 22.1 16.3 9.1 7.5 6.8 1.2 1.2 1.1 7.6 5.3 6.9 0.5 0.5 0.5 17.7
India Cements REDUCE 155 165 6.3 48 0.7 308 4 8 11 (24.2) 84.0 44.0 36.1 19.6 13.6 10.0 8.0 6.5 0.9 0.9 0.8 2.6 4.6 6.3 0.7 0.7 0.7 12.2
J K Cement REDUCE 986 1,020 3.5 69 1.1 70 41 66 84 18.2 61.2 28.3 24.1 15.0 11.7 11.8 10.1 9.4 3.5 2.9 2.4 15.3 21.2 22.4 0.8 0.8 0.8 0.7
JK Lakshmi Cement ADD 432 450 4.2 51 0.8 118 9 26 39 34.4 181.2 47.7 46.3 16.5 11.1 12.6 8.4 6.4 3.4 2.9 2.3 7.6 19.0 23.0 0.5 0.5 0.5 1.0
Orient Cement ADD 148 170 14.9 30 0.5 205 3 9 14 303.9 166.1 60.0 46.3 17.4 10.9 12.6 8.7 6.5 3.0 2.7 2.2 6.6 16.3 22.4 1.2 1.4 1.6 0.5
Shree Cement SELL 16,689 14,000 (16.1) 581 8.9 35 440 465 658 14.5 5.7 41.4 37.9 35.9 25.4 20.4 16.6 12.4 6.4 5.5 4.5 18.2 16.4 19.5 0.1 0.1 0.1 6.9
UltraTech Cement SELL 3,966 3,050 (23.1) 1,089 16.8 275 91 117 150 (5.0) 27.7 28.8 43.4 34.0 26.4 19.5 16.0 13.4 4.2 3.8 3.3 10.0 11.6 13.4 0.3 0.3 0.3 14.0
Cement Cautious 3,613 56 13.4 18.5 34.8 32.7 27.5 20.4 13.1 10.6 8.8 2.6 2.4 2.2 7.9 8.7 10.6 0.5 0.5 0.5 81.5
India
37
India
38
Target O/S ADVT

Consumer products
Asian Paints REDUCE 1,143 1,100 (3.8) 1,096 16.9 959 21 24 28 6.1 14.5 14.7 53.8 46.9 40.9 33.3 29.0 25.2 13.1 12.1 11.1 25.6 26.8 28.2 1.0 1.2 1.4 17.3
Bajaj Corp. ADD 463 570 23.2 68 1.0 148 15 18 20 (3.2) 20.6 10.1 30.3 25.1 22.8 24.4 20.6 17.4 13.5 12.5 11.4 45.0 51.6 52.2 2.6 2.8 3.0 0.8
Britannia Industries ADD 5,057 5,350 5.8 607 9.3 120 85 105 127 15.0 24.2 21.0 59.6 48.0 39.7 39.6 31.9 26.4 18.3 14.9 12.2 33.8 34.1 33.8 0.5 0.7 0.9 11.6
Coffee Day Enterprises REDUCE 306 340 11.1 65 1.0 206 4 9 14 77.3 136.5 51.5 77.0 32.5 21.5 — — — 2.7 2.5 2.2 3.6 7.9 10.9 — — — 3.2
Colgate-Palmolive (India) ADD 1,091 1,225 12.2 297 4.6 272 24 29 34 16.4 19.1 19.0 45.4 38.2 32.1 26.1 22.2 19.0 19.5 16.7 14.3 46.8 47.3 48.1 1.2 1.5 1.7 5.4
Dabur India REDUCE 337 330 (2.0) 593 9.1 1,762 8 9 10 7.0 15.6 12.0 44.0 38.0 33.9 36.7 32.2 28.3 10.7 9.4 8.4 26.0 26.4 26.1 0.9 1.1 1.3 10.0
GlaxoSmithKline Consumer ADD 6,107 6,500 6.4 257 4.0 42 159 182 203 2.0 14.5 11.5 38.3 33.5 30.0 26.2 21.8 18.8 7.6 7.0 6.5 20.6 21.7 22.3 1.3 1.6 1.8 2.0
Godrej Consumer Products REDUCE 1,086 980 (9.7) 740 11.4 681 22 25 29 14.4 14.8 14.4 49.6 43.2 37.8 35.9 30.7 26.6 12.1 10.4 9.0 26.1 25.9 25.6 0.7 0.8 0.9 9.7
Hindustan Unilever REDUCE 1,382 1,300 (5.9) 2,992 46.0 2,160 23 27 31 19.0 17.4 12.3 59.2 50.4 44.9 41.1 35.6 31.3 42.4 39.5 37.3 74.5 81.1 85.5 1.3 1.5 1.7 26.9
ITC ADD 260 315 21.3 3,168 48.7 12,235 9 10 11 8.9 10.0 11.7 28.9 26.2 23.5 19.1 17.3 15.4 6.6 6.3 6.0 21.8 23.4 25.6 2.2 2.6 3.0 58.3
Jubilant Foodworks BUY 2,335 2,500 7.1 154 2.4 66 29 45 61 172.6 58.2 35.7 81.6 51.6 38.0 33.6 24.4 18.8 16.7 14.1 11.6 21.9 29.7 33.5 0.4 0.6 0.9 39.8
Jyothy Laboratories ADD 379 405 6.9 69 1.1 182 9 12 14 34.8 34.6 14.6 43.1 32.0 28.0 27.7 21.9 19.1 6.2 5.8 5.5 14.5 18.7 20.3 1.6 1.8 2.1 1.3
Manpasand Beverages BUY 374 450 20.4 43 0.7 114 9 12 17 39.5 32.0 43.8 42.2 32.0 22.2 21.4 14.7 10.7 3.4 3.1 2.8 8.4 10.2 13.2 0.1 0.2 0.4 1.2
Marico ADD 324 345 6.6 418 6.4 1,291 7 8 9 13.3 18.4 13.0 49.0 41.3 36.6 34.8 29.1 25.4 16.1 14.3 12.9 34.7 36.7 37.1 1.2 1.4 1.6 6.0
Nestle India ADD 8,396 9,000 7.2 809 12.5 96 127 164 186 21.1 29.1 13.6 66.0 51.2 45.0 36.1 28.5 25.1 23.7 21.8 20.0 38.1 44.4 46.4 1.0 1.3 1.5 8.8
Page Industries SELL 24,055 18,200 (24.3) 268 4.1 11 299 358 438 27.2 20.0 22.3 80.6 67.1 54.9 51.8 42.5 35.0 32.2 26.0 21.1 44.5 42.9 42.5 0.5 0.6 0.8 6.9
PC Jeweller REDUCE 296 520 75.6 117 1.8 394 15 19 23 29.9 25.9 17.5 19.4 15.4 13.1 9.7 7.5 6.1 2.7 2.3 2.0 15.7 16.3 16.6 0.5 0.7 1.0 66.0
Pidilite Industries NR 967 — — 491 7.6 513 18 22 26 6.6 22.5 16.7 54.1 44.1 37.8 34.8 29.2 24.8 12.3 10.5 9.0 24.5 25.8 25.7 0.6 0.7 0.9 7.8
S H Kelkar and Company BUY 254 325 28.0 37 0.6 145 8 10 11 4.0 26.3 20.7 33.7 26.7 22.1 20.4 16.2 13.4 4.1 3.7 3.3 12.8 14.6 15.6 0.7 0.7 0.8 1.0
Tata Global Beverages ADD 273 300 9.9 172 2.6 631 8 10 13 33.9 26.6 22.2 33.5 26.4 21.6 17.8 15.0 12.8 2.6 2.4 2.3 8.0 9.5 10.9 1.0 1.1 1.3 18.1
Titan Company SELL 920 670 (27.2) 817 12.6 888 12 16 19 31.7 32.5 21.7 78.3 59.1 48.6 51.8 38.9 31.5 16.6 14.1 11.8 22.8 25.8 26.5 0.4 0.5 0.6 35.9
United Breweries SELL 992 850 (14.3) 262 4.0 264 14 18 21 64.4 25.3 19.1 69.4 55.4 46.5 30.2 26.4 23.2 9.9 8.7 7.6 15.2 16.8 17.5 0.2 0.3 0.4 8.3
United Spirits SELL 3,252 2,800 (13.9) 473 7.3 145 38 56 73 39.7 47.1 30.3 85.2 57.9 44.4 46.7 34.8 27.9 18.2 12.4 9.1 24.5 25.5 23.6 — — 0.3 27.2
Varun Beverages ADD 645 700 8.5 118 1.8 183 12 15 20 377.8 32.7 33.8 56.0 42.2 31.5 17.0 13.9 11.8 6.7 5.7 4.9 12.1 14.6 16.8 — — 0.2 2.5
Consumer products Cautious 14,131 217 15.1 17.6 15.0 45.9 39.1 34.0 29.4 25.1 21.7 11.4 10.3 9.4 24.8 26.4 27.5 1.2 1.4 1.6 376.1
Energy
BPCL REDUCE 422 410 (2.9) 916 14.1 1,967 36 37 40 (11.9) 2.3 7.4 11.7 11.5 10.7 8.9 8.4 7.8 2.5 2.3 2.1 22.6 20.9 20.4 3.8 3.9 4.2 30.6
Castrol India ADD 208 220 5.8 205 3.2 989 7 8 9 2.6 14.6 10.7 30.3 26.4 23.8 19.1 16.9 15.2 20.2 20.1 20.7 84.1 76.2 85.4 3.1 3.1 3.6 6.3
GAIL (India) BUY 332 400 20.3 750 11.5 2,255 22 24 27 31.5 9.5 10.2 15.1 13.8 12.5 9.4 8.8 8.0 1.8 1.7 1.6 12.5 12.7 13.0 2.1 2.4 2.6 25.1
GSPL SELL 189 180 (4.5) 106 1.6 564 12 12 14 41.1 0.4 8.7 15.2 15.1 13.9 7.8 7.3 6.4 2.1 1.9 1.7 14.7 13.3 13.1 1.3 1.3 1.4 2.5
HPCL REDUCE 348 350 0.5 531 8.2 1,524 39 32 33 (10.4) (16.8) 2.0 9.0 10.8 10.6 7.7 8.8 8.9 2.3 2.1 1.9 27.0 20.1 18.6 4.7 3.9 4.0 26.1
Indraprastha Gas SELL 290 250 (13.7) 203 3.1 700 10 12 14 20.3 16.7 12.4 27.8 23.8 21.2 17.2 14.8 13.1 6.0 5.2 4.6 23.1 23.4 23.2 0.8 1.1 1.5 11.9
IOCL REDUCE 174 175 0.8 1,685 25.9 9,479 19 17 18 (28.8) (11.6) 7.3 8.9 10.1 9.4 5.3 5.9 5.4 1.5 1.4 1.3 17.7 14.5 14.6 5.8 4.6 5.0 39.7
Mahanagar Gas SELL 1,012 910 (10.1) 100 1.5 99 50 53 54 26.7 4.1 2.0 20.1 19.3 18.9 11.7 11.1 10.7 4.8 4.4 4.0 25.4 23.7 22.0 2.1 2.6 2.6 3.4
ONGC ADD 177 210 18.3 2,277 35.0 12,833 19 21 23 12.3 11.5 7.7 9.4 8.4 7.8 4.4 3.9 3.5 1.0 0.9 0.8 10.5 11.0 11.1 3.4 3.9 4.5 21.6
Oil India SELL 218 225 3.4 247 3.8 1,135 24 23 24 17.2 (2.5) 2.7 9.2 9.4 9.2 6.5 6.0 5.8 0.8 0.8 0.8 9.1 8.7 8.6 4.9 4.8 4.9 4.4
Petronet LNG BUY 232 290 24.8 349 5.4 1,500 14 16 17 21.4 12.5 12.0 16.8 15.0 13.4 10.9 9.7 8.2 3.7 3.2 2.8 23.4 22.6 22.1 1.5 1.9 2.7 13.7
Reliance Industries REDUCE 908 900 (0.9) 5,375 82.7 5,918 59 66 77 17.1 12.0 15.7 15.3 13.7 11.8 11.9 9.7 8.2 1.8 1.6 1.5 11.7 11.7 12.1 0.7 0.9 1.0 104.0
Energy Attractive 12,744 196 0.9 4.8 10.4 12.4 11.8 10.7 7.9 7.2 6.4 1.6 1.5 1.4 13.1 12.6 12.8 2.4 2.5 2.7 289.2

Strategy
Strategy
Target O/S ADVT

Industrials
ABB SELL 1,279 1,100 (14.0) 271 4.2 212 20 27 34 12.1 34.1 29.2 64.5 48.1 37.2 35.6 28.8 22.4 7.5 6.9 6.1 12.2 14.9 17.3 0.3 0.7 0.7 2.4
BHEL SELL 87 80 (8.1) 320 4.9 3,671 2.5 3.8 5.9 86.2 53.0 52.4 34.6 22.6 14.8 21.0 9.4 5.7 1.0 0.9 0.9 2.8 4.2 6.2 0.7 1.1 1.7 14.5
Carborundum Universal SELL 372 325 (12.7) 70 1.1 189 11 15 18 23.5 28.4 22.4 32.5 25.3 20.7 17.5 13.1 11.1 4.6 4.1 3.6 14.9 17.2 18.7 0.9 1.2 1.5 1.2
CG Power and Industrial REDUCE 80 87 8.5 50 0.8 627 1.3 4.3 6.0 (56.2) 234.8 40.0 62.3 18.6 13.3 14.1 8.7 6.6 1.4 1.4 1.3 2.1 7.6 10.1 0.3 1.1 1.5 4.2
Crompton Greaves Consumer SELL 234 210 (10.3) 147 2.3 627 5.1 6.1 7.5 8.3 21.4 22.1 46.2 38.1 31.2 27.9 23.5 19.5 16.1 11.2 8.5 43.7 34.8 31.0 0.4 0.4 0.4 4.4
Cummins India REDUCE 744 855 14.9 206 3.2 277 25 29 34 (6.4) 19.4 16.7 30.3 25.4 21.7 26.6 21.9 18.4 5.2 4.8 4.4 17.6 19.6 21.2 1.8 2.1 2.4 5.6
Havells India SELL 513 450 (12.2) 320 4.9 625 11 14 17 14.8 26.0 20.8 47.0 37.3 30.9 30.6 23.5 19.4 8.8 7.9 7.2 19.7 22.4 24.5 0.9 1.2 1.6 14.2
Kalpataru Power Transmission BUY 479 575 20.0 74 1.1 153 17 28 40 21.7 62.4 42.5 27.7 17.1 12.0 9.3 7.6 6.0 2.8 2.5 2.1 10.5 15.3 18.7 0.4 0.4 0.4 1.2
KEC International ADD 415 455 9.8 107 1.6 257 16 23 30 37.1 39.8 32.8 25.5 18.2 13.7 12.7 10.1 8.0 5.5 4.4 3.5 23.7 26.8 28.2 0.5 0.7 1.0 5.2
L&T BUY 1,329 1,505 13.3 1,862 28.6 1,399 54 62 75 26.5 15.3 21.8 24.8 21.5 17.7 20.8 17.7 15.8 3.6 3.3 3.0 15.3 16.1 17.8 1.5 1.7 2.0 60.6
Siemens SELL 1,124 1,045 (7.0) 400 6.2 356 26 31 38 30.2 21.9 22.6 43.7 35.9 29.3 25.2 20.4 16.4 4.9 4.6 4.2 11.5 13.2 15.1 0.9 1.1 1.4 4.2
Thermax REDUCE 1,115 1,065 (4.4) 133 2.0 113 27 34 43 24.2 28.9 24.4 41.9 32.5 26.2 28.2 22.9 18.9 4.6 4.1 3.7 11.3 13.3 14.9 0.5 0.7 0.8 1.2
Voltas SELL 631 526 (16.7) 209 3.2 331 17 18 21 11.9 6.0 14.5 36.7 34.6 30.3 30.0 25.4 21.5 5.6 5.0 4.4 16.1 15.2 15.5 0.6 0.7 0.8 15.8
Industrials Neutral 4,168 64 23.6 23.0 25.5 31.4 25.5 20.3 21.7 17.3 14.6 3.5 3.2 2.9 11.0 12.5 14.4 1.1 1.3 1.6 134.6
Infrastructure
Adani Ports and SEZ ADD 376 475 26.3 779 12.0 2,071 18 21 23 (4.3) 17.1 7.5 20.8 17.8 16.5 14.1 12.0 11.2 3.8 3.2 2.7 19.6 19.4 17.8 0.5 0.7 0.8 24.3
Ashoka Buildcon BUY 262 310 18.3 49 0.8 188 12 13 13 18.9 9.0 4.5 22.5 20.7 19.8 16.3 14.0 12.4 2.4 2.1 1.9 11.2 10.9 10.2 0.7 1.2 0.8 1.4
Container Corp. SELL 1,240 1,200 (3.2) 302 4.6 244 34 40 48 3.8 19.6 19.5 36.8 30.8 25.7 23.2 18.6 14.6 3.2 3.0 2.8 9.0 10.0 11.1 1.2 1.3 1.6 7.7
Gateway Distriparks BUY 182 270 48.0 20 0.3 109 6 10 14 (7.8) 55.8 41.9 29.3 18.8 13.3 21.8 17.5 13.8 1.9 1.8 1.6 6.5 9.6 12.7 1.0 1.6 2.3 0.8
Gujarat Pipavav Port BUY 140 180 28.4 68 1.0 483 4.4 6.3 8.2 (15.0) 43.2 29.9 31.9 22.3 17.2 16.2 12.3 9.6 3.3 3.2 3.0 10.4 14.4 18.0 2.4 3.4 4.4 2.0
IRB Infrastructure BUY 241 280 16.1 85 1.3 351 29 36 32 43.2 24.5 (12.4) 8.3 6.6 7.6 7.7 6.4 6.8 1.4 1.2 1.0 17.9 18.9 14.3 0.9 1.5 1.8 5.7
Mahindra Logistics BUY 496 570 15.0 35 0.5 71 10 14 20 21.1 41.2 37.9 48.5 34.3 24.9 28.9 18.8 13.5 8.5 6.8 5.3 19.0 22.0 24.0 — — — 1.1
Sadbhav Engineering ADD 402 475 18.2 69 1.1 172 15 19 20 33.2 31.1 5.0 27.6 21.0 20.0 19.5 15.4 11.7 3.6 3.1 2.7 14.1 16.1 14.7 — — — 1.4
Infrastructure Attractive 1,406 22 3.8 20.5 7.3 21.9 18.2 17.0 14.0 11.7 10.7 3.2 2.8 2.5 14.6 15.4 14.6 0.7 1.0 1.1 44.3
Internet
Info Edge REDUCE 1,202 1,290 7.3 146 2.3 121 22 28 33 32.1 23.3 19.1 53.9 43.7 36.7 39.9 31.3 25.6 6.1 5.6 5.0 12.4 13.3 14.4 1.0 0.6 0.7 2.9
Just Dial SELL 466 500 7.3 31 0.5 67 20 23 25 16.0 14.0 8.5 23.0 20.2 18.6 12.7 10.5 9.0 3.3 2.9 2.6 14.8 15.4 14.6 — 0.5 0.5 30.9
Internet Cautious 178 3 24.7 20.2 15.7 43.8 36.4 31.5 30.7 24.7 20.8 5.4 4.8 4.3 12.2 13.2 13.7 0.9 0.6 0.7 33.8
Media
DB Corp. REDUCE 311 360 15.7 57 0.9 184 18 23 27 (10.0) 26.4 14.3 16.8 13.3 11.7 9.1 7.2 6.2 3.4 3.3 3.2 20.8 25.2 27.6 4.2 5.1 6.4 0.9
DishTV ADD 72 84 17.3 76 1.2 1,066 (0.4) 0.5 0.9 (134.5) 248.3 70.8 NM 136.6 80.0 10.0 8.7 8.0 16.9 15.0 12.6 (8.0) 11.6 17.1 — — — 7.6
Jagran Prakashan REDUCE 171 190 10.9 53 0.8 311 11 14 15 3.6 26.7 10.3 15.6 12.3 11.1 7.6 6.3 5.6 2.6 2.5 2.3 16.3 20.6 21.4 2.3 5.0 5.3 0.6
PVR REDUCE 1,256 1,350 7.5 59 0.9 47 25 37 52 16.2 50.1 39.4 50.5 33.7 24.2 17.2 13.7 11.1 5.5 4.8 4.1 11.4 15.2 18.3 0.2 0.3 0.4 5.2
Sun TV Network REDUCE 873 975 11.7 344 5.3 394 29 36 40 10.8 22.8 12.6 30.1 24.5 21.8 20.6 16.7 14.7 7.5 6.7 6.0 — — — 1.4 2.0 2.3 19.4
Zee Entertainment Enterprises ADD 586 625 6.6 563 8.7 960 13 18 21 (7.9) 38.4 17.2 45.6 33.0 28.1 25.8 21.2 17.9 7.2 6.2 5.4 17.0 20.1 20.6 0.6 0.8 0.9 22.4
Media Attractive 1,153 18 (5.0) 34.0 16.3 36.7 27.4 23.6 18.2 15.0 13.0 6.5 5.8 5.2 17.8 21.1 21.9 1.0 1.5 1.7 56.1
India
39
India
40
Target O/S ADVT

Metals & Mining
Coal India RS 278 — — 1,724 26.5 6,207 19 24 25 25.4 26.7 5.8 14.8 11.7 11.1 9.2 7.1 6.4 5.7 5.2 4.8 39.5 46.3 45.1 4.7 6.0 6.3 24.5
Hindalco Industries BUY 214 315 47.1 481 7.4 2,227 21 26 30 147.9 21.2 16.5 10.1 8.3 7.1 6.3 5.5 4.6 0.9 0.8 0.8 9.7 10.5 11.1 0.5 0.5 0.5 37.9
Hindustan Zinc ADD 314 325 3.7 1,325 20.4 4,225 21 26 28 8.9 22.6 7.5 14.6 11.9 11.1 9.2 7.3 6.2 3.6 3.0 2.6 26.8 27.5 25.0 2.1 2.5 2.7 13.7
Jindal Steel and Power REDUCE 236 250 6.0 228 3.5 915 (9) 8 17 56.4 191.0 106.9 (26.0) 28.5 13.8 10.0 7.2 6.2 0.7 0.7 0.7 (2.8) 2.7 5.3 — — — 60.5
JSW Steel ADD 308 315 2.1 745 11.5 2,417 19 23 25 27.4 21.4 10.2 16.6 13.7 12.4 8.7 8.0 7.7 2.7 2.3 2.0 17.6 18.2 17.2 0.8 0.8 0.8 27.4
National Aluminium Co. ADD 72 85 18.1 139 2.1 1,933 6 7 7 54.4 19.3 10.3 12.7 10.7 9.7 5.6 4.5 3.9 1.3 1.2 1.1 10.3 11.5 12.0 4.2 4.2 4.2 10.0
NMDC SELL 118 125 6.1 373 5.7 3,164 13 10 11 55.4 (24.0) 8.8 9.3 12.2 11.2 5.7 7.8 7.1 1.5 1.5 1.4 17.1 12.2 12.7 4.7 4.7 4.7 11.9
Tata Steel ADD 580 750 29.2 665 10.2 1,205 66 66 73 59.3 0.5 10.9 8.8 9 7.9 5.6 5.9 5.4 1.4 1.3 1.1 18.9 15.4 15.0 1.7 1.7 1.7 92.4
Vedanta BUY 290 445 53.4 1,078 16.6 3,717 23 39 46 15.1 71.2 18.8 12.8 7.5 6.3 7.3 5.2 4.3 1.6 1.5 1.3 13.4 20.9 22.0 2.3 4.0 4.8 56.9
Metals & Mining Attractive 6,758 104 41.4 27.7 12.4 13.4 10.5 9.3 7.5 6.4 5.6 2.1 1.9 1.7 15.5 17.8 17.9 2.6 3.3 3.5 335.0
Pharmaceutical
Apollo Hospitals ADD 1,084 1,230 13.5 151 2.3 139 13 23 30 (19.7) 81.8 30.6 84.9 46.7 35.8 21.2 17.9 15.2 4.0 3.7 3.5 4.8 8.2 10.1 0.3 0.5 0.7 7.2
Aurobindo Pharma ADD 599 690 15.1 351 5.4 584 43 46 50 9.6 7.4 7.9 13.9 12.9 12.0 9.7 8.9 8.0 3.0 2.4 2.1 23.9 20.8 17.2 0.4 0.5 0.6 26.3
Biocon SELL 608 280 (53.9) 365 5.6 601 6 8 14 (40.3) 36.2 80.6 104.0 76.4 42.3 42.5 31.8 21.0 6.6 6.2 5.6 6.6 8.4 13.9 0.3 0.5 0.8 30.3
Cipla BUY 560 720 28.5 451 6.9 805 21 31 38 64.6 49.6 22.1 27.2 18.2 14.9 15.0 10.8 8.9 3.2 2.8 2.4 12.2 16.3 17.4 0.7 1.1 1.4 17.0
Dr Lal Pathlabs REDUCE 877 880 0.4 73 1.1 83 21 24 29 7.7 18.7 18.5 42.6 35.9 30.3 25.9 21.8 18.2 9.1 7.5 6.3 23.5 23.0 22.6 0.4 0.4 0.5 1.3
Dr Reddy's Laboratories SELL 2,111 2,250 6.6 350 5.4 166 62 96 136 (15.1) 55.5 42.3 34.3 22.1 15.5 15.0 10.1 7.4 2.6 2.4 2.1 8.0 11.4 13.7 0.4 0.7 1.0 22.6
HCG REDUCE 305 305 - 27 0.4 85 2 3 5 (35.5) 87.1 58.0 181.4 96.9 61.4 26.2 20.0 17.0 5.3 5.1 4.7 3.1 5.4 7.9 — — — 0.8
Laurus Labs ADD 507 540 6.5 54 0.8 106 17 23 34 (3.5) 34.3 45.1 29.2 21.7 15.0 14.6 12.1 9.2 3.5 3.0 2.5 12.9 15.1 18.4 — — — 0.8
Lupin REDUCE 787 840 6.8 356 5.5 450 30 37 47 (46.5) 20.1 27.7 25.9 21.5 16.9 11.8 10.3 8.4 2.4 2.2 2.0 9.7 10.7 12.4 0.6 0.7 0.9 22.5
Narayana Hrudayalaya ADD 289 320 10.8 59 0.9 204 3 4 7 (32.8) 61.7 68.7 105.7 65.4 38.8 29.6 20.7 15.6 5.8 5.3 4.7 5.6 8.5 12.8 — — — 0.7
Sun Pharmaceuticals REDUCE 508 500 (1.5) 1,218 18.7 2,406 13 20 26 (55.0) 54.0 30.8 39.0 25.3 19.4 19.3 12.8 9.9 3.2 2.9 2.5 8.4 11.9 14.0 0.3 0.8 1.0 61.9
Torrent Pharmaceuticals NR 1,327 — — 225 3.5 169 40 59 73 (28.0) 47.3 25.0 33.4 22.7 18.1 18.5 13.5 11.3 4.6 4.0 3.4 14.6 17.6 18.8 0.7 1.0 1.3 4.4
Pharmaceuticals Neutral 3,678 57 (30.2) 37.7 27.8 32.5 23.6 18.5 16.5 12.5 10.0 3.3 3.0 2.6 10.3 12.6 14.2 0.4 0.7 0.9 195.9
Real Estate
Brigade Enterprises BUY 259 340 31.1 35 0.5 136 10 10 10 (26.4) 0.7 (3.7) 26.2 26.0 27.0 11.6 11.8 11.7 1.5 1.5 1.4 6.7 5.8 5.4 1.0 1.0 1.0 0.3
DLF RS 206 — — 368 5.7 1,784 47.0 1.8 2.1 1,107.8 (96.3) 20.6 4.4 117.7 97.6 21.1 16.2 16.4 1.1 1.1 1.1 29.4 1.0 1.2 1.0 1.0 1.0 27.0
Godrej Properties SELL 725 400 (44.8) 157 2.4 216 8.0 8.7 15.5 (15.8) 8.2 77.9 90.0 83.2 46.8 98.7 356.7 67.8 7.2 6.6 5.8 8.3 8.3 13.2 — — — 3.0
Oberoi Realty REDUCE 499 520 4.2 169 2.6 340 12 66 46 11.1 432.0 (30.3) 40.2 7.6 10.9 28.1 10.0 13.2 2.8 2.1 1.7 7.1 31.3 17.4 0.4 0.4 0.4 4.0
Prestige Estates Projects ADD 302 315 4.4 113 1.7 375 9 12 13 (6.7) 30.0 5.9 32.0 24.7 23.3 16.9 14.9 14.7 2.4 2.2 2.0 7.7 9.3 9.1 0.5 0.5 0.5 2.3
Sobha REDUCE 509 510 0.2 48 0.7 96 23 23 26 40.6 (3.8) 13.4 21.7 22.6 19.9 13.7 13.1 12.2 1.8 1.7 1.6 8.3 7.6 8.2 1.4 1.4 1.4 4.7
Sunteck Realty REDUCE 408 330 (19.1) 60 0.9 140 17 16 17 19.3 (6.4) 2.6 23.5 25.1 24.4 17.2 20.8 20.8 2.1 2.0 1.8 10.9 8.2 7.8 0.3 0.2 0.2 3.5
Real Estate Neutral 951 15 356.6 (62.0) (10.9) 9.6 25.1 28.2 21.7 16.4 16.9 1.8 1.7 1.6 18.7 6.7 5.7 0.6 0.6 0.6 44.8

Strategy
Strategy
Target O/S ADVT

Technology
HCL Technologies REDUCE 962 1,000 3.9 1,339 20.6 1,407 63 66 70 5.7 6.1 5.3 15.4 14.5 13.8 10.8 9.4 8.6 3.6 3.2 3.0 24.6 23.6 22.6 0.9 3.4 3.9 29.4
Hexaware Technologies REDUCE 401 335 (16.6) 119 1.8 304 16 19 21 20.0 13.5 10.3 24.4 21.5 19.5 17.2 15.1 13.2 6.4 5.6 5.0 27.6 27.6 26.9 2.0 2.0 2.5 8.4
Infosys ADD 1,145 1,250 9.2 2,501 38.5 2,175 65 70 76 3.5 7.3 8.8 17.6 16.4 15.1 12.4 11.2 10.1 3.9 3.6 3.3 21.9 22.9 22.8 2.9 3.1 3.4 92.3
L&T Infotech ADD 1,394 1,100 (21.1) 240 3.7 175 65 70 80 15.9 8.4 14.4 21.6 19.9 17.4 17.9 14.3 12.4 6.3 5.3 4.5 32.3 29.1 28.1 1.4 1.7 1.9 4.8
Mindtree ADD 806 735 (8.8) 132 2.0 165 32 37 45 27.6 16.2 21.5 25.2 21.7 17.9 17.2 12.9 10.6 5.0 4.3 3.7 20.1 21.3 22.3 1.1 1.2 1.5 23.7
Mphasis SELL 870 650 (25.3) 168 2.6 193 42 46 48 9.0 9.2 5.7 20.8 19.1 18.0 14.5 12.7 11.7 3.1 2.9 2.7 14.0 15.7 15.4 2.3 2.3 2.3 4.4
TCS REDUCE 2,957 2,700 (8.7) 5,661 87.1 1,914 134 145 156 0.6 8.3 7.1 22.0 20.3 19.0 15.9 14.2 12.9 6.5 6.0 5.6 29.4 30.9 30.6 1.7 3.1 3.3 102.8
Tech Mahindra ADD 617 685 11.0 545 8.4 883 39 42 48 22.3 7.9 12.4 15.7 14.6 13.0 10.5 8.5 7.2 2.9 2.5 2.2 19.6 18.5 18.0 1.5 1.5 1.5 31.4
Wipro REDUCE 285 310 8.6 1,291 19.9 4,507 18 20 22 1.4 13.3 10.3 16.1 14.2 12.9 9.8 8.2 7.0 2.6 2.3 2.0 16.4 17.1 16.3 0.4 0.5 0.9 17.3
Technology Cautious 11,996 185 1.1 7.4 8.2 18.8 17.5 16.2 13.3 11.7 10.5 4.5 4.0 3.6 23.7 22.9 22.4 1.7 2.7 3.0 314.4
Telecom
Bharti Airtel ADD 394 470 19.3 1,575 24.2 3,997 3 (3) 1 (65.3) (220.4) 125.1 137.1 (113.8) 453.2 9.0 10.1 8.2 2.4 2.5 2.5 1.7 (2.2) 0.6 0.7 0.3 0.0 58.8
Bharti Infratel SELL 338 260 (23.1) 625 9.6 1,850 14 12 10 (7.5) (15.8) (14.5) 24.6 29.2 34.2 9.7 10.9 12.2 4.0 4.0 4.0 16.3 13.6 11.6 3.2 2.8 2.5 25.5
IDEA REDUCE 77 75 (2.5) 335 5.2 3,605 (13) (16) (14) (963.2) (18.7) 12.4 (5.7) (4.8) (5.5) 16.2 17.8 13.8 1.4 2.0 3.0 (21.7) (33.8) (43.3) — — — 24.4
Tata Communications ADD 655 740 13.0 187 2.9 285 1 5 10 (94.2) 751.3 95.6 1,081 127.0 64.9 11.5 10.0 8.8 16.9 14.8 12.0 1.3 12.4 20.4 1.0 1.0 1.1 4.9
Telecom Cautious 2,722 42 (119.3) (325.8) 47.0 (239.1) (56.2) (105.9) 10.1 11.2 9.4 2.7 2.9 3.1 (1.1) (5.2) (2.9) 1.1 0.8 0.6 113.6
Utilities
CESC ADD 999 1,140 14.1 132 2.0 133 87 98 115 66.5 12.8 17.7 11.5 10.2 8.7 7.2 6.8 6.0 0.9 0.8 0.8 7.7 8.2 9.0 1.1 1.2 1.2 9.9
JSW Energy REDUCE 83 76 (8.4) 136 2.1 1,640 3.9 5.4 7.7 1.6 39.4 42.4 21.5 15.4 10.8 8.2 7.1 5.9 1.3 1.2 1.1 6.0 8.1 10.9 2.4 2.4 2.4 7.0
NHPC ADD 29 30 4.3 295 4.5 10,259 2.9 3.1 3.4 (3.4) 10.2 7.4 10.1 9.1 8.5 9.3 7.6 6.6 1.0 0.9 0.9 9.9 10.5 10.9 5.5 5.9 6.4 3.9
NTPC BUY 169 190 12.6 1,391 21.4 8,245 12 17 17 (2.6) 38.1 4.8 14.0 10.2 9.7 11.1 8.2 7.1 1.4 1.2 1.1 9.9 12.7 12.3 2.2 2.9 3.1 16.8
Power Grid BUY 196 250 27.4 1,027 15.8 5,232 16 19 21 11.7 17.3 13.4 12.2 10.4 9.2 8.5 7.4 6.7 1.9 1.7 1.5 16.0 16.9 17.1 2.5 2.9 3.3 25.4
Reliance Power SELL 43 43 0.8 120 1.8 2,805 3.6 5.2 6.1 (14.3) 45.6 16.5 11.9 8.2 7.0 8.9 7.8 7.2 0.5 0.5 0.5 4.6 6.3 6.9 — — — 11.2
Tata Power REDUCE 84 83 (0.6) 226 3.5 2,705 6.4 6.6 8.3 8.1 3.8 25.1 13.1 12.6 10.1 11.4 10.0 9.1 1.7 1.5 1.3 13.7 12.5 13.7 — — — 8.7
Utilities Attractive 3,327 51 3.8 25.0 10.9 12.9 10.3 9.3 9.6 7.9 7.0 1.3 1.2 1.1 10.3 11.9 12.1 2.3 2.8 3.0 83.0
India
41
India
42
Target O/S ADVT

Others
Astral Poly Technik SELL 915 570 (37.7) 110 1.7 120 15 19 23 22.8 24.9 22.0 61.4 49.2 40.3 36.1 27.7 22.2 10.8 8.9 7.4 19.2 19.8 20.0 0.1 0.1 0.1 1.1
Avenue Supermarts SELL 1,401 810 (42.2) 875 13.5 624 13 17 21 53.0 28.1 25.6 107.8 84.1 67.0 65.2 49.6 39.5 18.8 15.4 12.5 19.1 20.1 20.6 — — — —
Bayer Cropscience ADD 4,472 4,450 (0.5) 177 2.7 34 96 115 134 17.2 19.1 16.9 46.3 38.9 33.3 37.9 30.2 24.1 8.5 7.3 6.3 17.2 20.3 20.3 0.4 0.5 0.6 1.2
Cera Sanitaryware REDUCE 3,370 2,950 (12.5) 44 0.7 13 82 100 116 7.3 22.7 15.3 41.2 33.6 29.1 25.1 20.4 17.2 7.1 5.9 5.9 18.9 19.3 20.3 0.3 0.3 0.2 0.8
Dhanuka Agritech REDUCE 586 690 17.7 29 0.4 49 25 28 31 3.3 11.5 14.3 23.8 21.3 18.7 16.4 13.9 11.8 4.8 4.1 3.6 21.5 20.7 20.5 1.1 1.2 1.3 0.3
Godrej Agrovet ADD 666 615 (7.6) 128 2.0 189 12 16 21 (1.6) 34.4 25.5 54.6 40.6 32.4 28.4 22.6 18.4 7.0 6.1 5.2 15.1 16.3 17.4 0.3 0.4 0.5 3.5
Godrej Industries RS 555 — — 187 2.9 336 15 16 20 6.8 8.9 24.2 38.1 35.0 28.2 34.6 29.3 31.9 5.2 4.6 4.0 14.4 13.9 15.1 0.3 0.3 0.3 4.6
HSIL REDUCE 396 390 (1.5) 29 0.4 72 11 18 23 (19.3) 56.0 27.4 34.5 22.1 17.3 12.7 9.6 8.0 1.9 1.8 1.7 5.6 8.4 10.0 1.0 1.0 1.0 0.6
InterGlobe Aviation BUY 1,449 1,500 3.5 557 8.6 383 70 92 108 52.8 31.2 16.8 20.6 15.7 13.4 13.5 9.7 8.0 6.9 5.4 4.3 45.6 38.6 35.6 1.5 1.9 2.2 16.3
Kaveri Seed SELL 502 470 (6.4) 33 0.5 66 32 34 36 19.8 5.9 5.0 15.5 14.7 14.0 13.0 11.9 10.7 4.3 3.5 3.0 23.8 26.3 23.3 1.2 1.6 2.0 4.8
PI Industries BUY 886 940 6.0 122 1.9 138 27 34 43 (18.1) 23.3 27.3 32.6 26.4 20.7 22.9 18.4 14.4 6.3 5.2 4.3 21.1 21.6 22.7 0.4 0.5 0.6 1.8
Rallis India ADD 230 290 26.2 45 0.7 194 9 12 16 2.3 37.0 30.2 25.7 18.7 14.4 16.4 12.0 9.2 3.7 3.3 2.8 15.0 18.6 21.1 1.4 1.6 1.7 1.8
SIS REDUCE 1,147 1,100 (4.1) 84 1.3 73 25 35 41 90.9 39.2 18.6 46.1 33.1 27.9 26.1 20.9 17.6 7.8 6.4 5.2 22.5 21.4 20.6 — — — 0.4
SRF BUY 2,029 2,185 7.7 117 1.8 57 83 102 129 (7.8) 23.2 26.4 24.5 19.9 15.8 14.0 10.8 8.8 3.3 2.9 2.5 14.0 15.3 16.8 0.6 0.7 0.7 5.6
Tata Chemicals ADD 716 760 6.2 182 2.8 255 45 43 50 (6.6) (3.8) 15.9 15.9 16.5 14.2 6.2 6.4 5.4 1.7 1.6 1.5 12.3 10.0 10.9 1.8 2.1 2.4 8.9
TeamLease Services SELL 2,275 1,700 (25.3) 39 0.6 17 43 57 74 9.9 34.5 28.3 53.4 39.7 30.9 55.3 38.3 29.4 8.6 7.0 5.7 17.5 19.5 20.5 — — — 1.6
UPL ADD 757 875 15.6 385 5.9 507 39 47 55 9.8 21.6 15.6 19.4 16.0 13.8 11.8 10.3 8.8 4.3 3.6 3.0 24.3 24.5 23.5 1.1 1.3 1.5 21.9
Vardhman Textiles ADD 1,238 1,400 13.1 71 1.1 55 106 138 140 (5.5) 30.6 1.6 11.7 9.0 8.8 10.4 7.1 6.7 1.4 1.3 1.1 12.9 15.1 13.7 1.6 1.6 2.4 1.2
Whirlpool SELL 1,527 1,150 (24.7) 194 3.0 127 27 36 44 8.7 30.4 23.7 56.0 42.9 34.7 32.6 25.8 20.7 11.0 9.1 7.6 21.3 23.2 23.9 0.3 0.4 0.6 1.4
Others 3,333 51 16.9 22.7 18.1 32.0 26.1 22.1 19.6 16.0 13.5 5.9 5.0 4.3 18.4 19.2 19.4 0.6 0.8 0.9 76.2
KIE universe 105,791 1,627 3.5 24.8 20.6 23.2 18.6 15.4 12.0 10.3 9.0 2.8 2.6 2.3 12.2 13.9 15.1 1.3 1.6 1.8
KIE universe (ex-energy) 93,046 1,431 4.3 30.7 23.0 26.4 20.2 16.4 13.4 11.3 9.9 3.2 2.9 2.6 12.0 14.2 15.7 1.2 1.5 1.7
Notes:
(a) We have used adjusted book values for banking companies.
(b) 2018 means calendar year 2017, similarly for 2019 and 2020 for these particular companies.
(c) Exchange rate (Rs/US$)= 65.01

Strategy
Strategy India
"I, Sanjeev Prasad, hereby certify that all of the views expressed in this report accurately
reflect my personal views about the subject company or companies and its or their securities.
I also certify that no part of my compensation was, is or will be, directly or indirectly, related
to the specific recommendations or views expressed in this report."

India Strategy
Kotak Institutional Equities Research coverage universe

Distribution of ratings/investment banking relationships
Percentage of companies covered by Kotak Institutional
70%
Equities, within the specified category.
60%
Percentage of companies within each category for which Kotak
Institutional Equities and or its affiliates has provided
50%
investment banking services within the previous 12 months.
40% * The above categories are defined as follows: Buy = We

32.0% expect this stock to deliver more than 15% returns over the
28.0% next 12 months; Add = We expect this stock to deliver 5-15%
30%
25.0% returns over the next 12 months; Reduce = We expect this stock
to deliver -5-+5% returns over the next 12 months; Sell = We
20% expect this stock to deliver less than -5% returns over the next
15.0%
12 months. Our target prices are also on a 12-month horizon
basis. These ratings are used illustratively to comply with
10%
applicable regulations. As of 31/12/2017 Kotak Institutional
2.5% 2.5% 2.5% 2.5%
Equities Investment Research had investment ratings on 200
0% equity securities.
BUY ADD REDUCE SELL
Source: Kotak Institutional Equities As of December 31, 2017

Disclosures
Ratings and other definitions/identifiers

Definitions of ratings
BUY. We expect this stock to deliver more than 15% returns over the next 12 months.
ADD. We expect this stock to deliver 5-15% returns over the next 12 months.
REDUCE. We expect this stock to deliver -5-+5% returns over the next 12 months.
SELL. We expect this stock to deliver <-5% returns over the next 12 months.
Our target prices are also on a 12-month horizon basis.
Other definitions
Coverage view. The coverage view represents each analyst’s overall fundamental outlook on the Sector. The coverage view will consist of one of the following designations:
Attractive, Neutral, Cautious.
Other ratings/identifiers
NR = Not Rated. The investment rating and target price, if any, have been suspended temporarily. Such suspension is in compliance with applicable regulation(s) and/or
Kotak Securities policies in circumstances when Kotak Securities or its affiliates is acting in an advisory capacity in a merger or strategic transaction involving this company
and in certain other circumstances.
CS = Coverage Suspended. Kotak Securities has suspended coverage of this company.
NC = Not Covered. Kotak Securities does not cover this company.
RS = Rating Suspended. Kotak Securities Research has suspended the investment rating and price target, if any, for this stock, because there is not a sufficient fundamental
basis for determining an investment rating or target. The previous investment rating and price target, if any, are no longer in effect for this stock and should not be relied
upon.
NA = Not Available or Not Applicable. The information is not available for display or is not applicable.
NM = Not Meaningful. The information is not meaningful and is therefore excluded.

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We hereby declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered in last five years. However SEBI,
Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on KSL for certain operational
deviations. We have not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has our certificate of registration been cancelled by SEBI at any
point of time.
We offer our research services to primarily institutional investors and their employees, directors, fund managers, advisors who are registered with us
Details of Associates are available on our website i.e. www.kotak.com
Research Analyst has served as an officer, director or employee of subject company(ies): No
We or our associates may have received compensation from the subject company(ies) in the past 12 months.
We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past 12 months. YES
We or our associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company(ies) in the past 12 months. We or our
associates may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company(ies) in the
past 12 months. We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report.
Our associates may have financial interest in the subject company(ies).
Research Analyst or his/her relative's financial interest in the subject company(ies): No
Kotak Securities Limited has financial interest in the subject company(ies) at the end of the month immediately preceding the date of publication of Research Report: YES
Our associates may have actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of publication of
Research Report.
Research Analyst or his/her relatives has actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of
publication of Research Report: No
Kotak Securities Limited has actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of publication of
Research Report: No
Subject company(ies) may have been client during twelve months preceding the date of distribution of the research report.
A graph of daily closing prices of securities is available at www.nseindia.com and http://economictimes.indiatimes.com/markets/stocks/stock-quotes. (Choose a company from the list on
the browser and select the"three years" icon in the price chart).
Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051, Telephone No.: +91-22 43360
000, Fax No.: +91-22- 6713 2430. Website: www.kotak.com. SEBI Registration No: NSE INB/INF/INE 230808130, BSE INB 010808153/INF 011133230, MSEI INE 260808130/INB
260808135/INF 260808135, Research Analyst INH000000586, AMFI ARN 0164 and PMS INP000000258. NSDL: IN-DP-NSDL-23-97. CDSL: IN-DP-CDSL-158-2001.
Compliance Officer Details: Mr. Manoj Agarwal. Call: +91-22-4285 6825, or Email: ks.compliance@kotak.com.
In case you require any clarification or have any concern, kindly write to us at below email ids:
Level 1: For Trading related queries, contact our customer service at 'service.securities@kotak.com' and for demat account related queries contact us at ks.demat@kotak.com or call us
on: Online Customers - 30305757 (by using your city STD code as a prefix) or Toll free numbers 18002099191 / 1800222299, Offline Customers - 18002099292
Level 2: If you do not receive a satisfactory response at Level 1 within 3 working days, you may write to us at ks.escalation@kotak.com or call us on +91-22-4285 8445 and if you feel
you are still unheard, write to our customer service HOD at ks.servicehead@kotak.com or call us on +91-22-4285 8208.
Level 3: If you still have not received a satisfactory response at Level 2 within 3 working days, you may contact our Compliance Officer (Name: Manoj Agarwal) at
ks.compliance@kotak.com or call on +91-22-4285 6825.
Level 4: If you have not received a satisfactory response at Level 3 within 7 working days, you may also approach CEO (Mr. Kamlesh Rao) at ceo.ks@kotak.com or call on
+91-22-6652 9160.
First Cut notes published on this site are for information purposes only. They represent early notations and responses by analysts to recent events. Data in the notes may not have been
verified by us and investors should not act upon any data or views in these notes. Most First Cut notes, but not necessarily all, will be followed by final research reports on the subject.
There could be variance between the First cut note and the final research note on any subject, in which case the contents of the final research note would prevail. We accept no liability
for the contents of the First Cut Notes.

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Company Report

We expect net income of the KIE universe to grow 7% yoy in 4QFY18

Source: Kotak Institutional Equities estimates

Sanjeev Prasad Kawaljeet Saluja Rohit Chordia

Nischint Chawathe Murtuza Arsiwalla Chirag Talati, CFA

Hitesh Goel M.B. Mahesh, CFA Tarun Lakhotia

Samar Sarda Suvodeep Rakshit Abhishek Poddar

Sunita Baldawa Aditya Mongia Jaykumar Doshi

Nishit Jalan Garima Mishra Aniket Sethi

Kumar Gaurav Abhijeet Sakhare Ajinkya Bhat

Anindya Bhowmik Akshay Bhor Dipanjan Ghosh

2 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Source: Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 3

Source: Kotak Institutional Equities estimates

4 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Jun-09 Jun-09 Jun-09

KOTAK INSTITUTIONAL EQUITIES RESEARCH

Source: Kotak Institutional Equities estimates

Sep-11 Sep-11 Sep-11

Sep-14 Sep-14 Sep-14

Dec-14 Dec-14 Dec-14

Jun-15 Jun-15 Jun-15

BSE-30 Index earnings growth ex-energy ex-banks (%)

Jun-17 Jun-17 Jun-17

Sep-17 Sep-17 Sep-17

Dec-17 Dec-17 Dec-17

Exhibit 3: Sector-wise net income of companies in the KIE universe (` bn)

Net sales EBITDA PAT

Source: Kotak Institutional Equities estimates

Exhibit 4: Sector-wise net income of companies in the BSE-30 Index (` bn)

Net sales EBITDA PAT

Source: Companies, Kotak Institutional Equities estimates

Exhibit 5: Sector-wise net income of companies in the Nifty-50 Index (` bn)

Net sales EBITDA PAT

Source: Companies, Kotak Institutional Equities estimates

6 KOTAK INSTITUTIONAL EQUITIES RESEARCH

4QFY18/1QCY18 EARNINGS PREVIEW FOR KIE UNIVERSE

Source: Companies, Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 7

Company-wise earnings of the KIE universe (` mn)

Source: Companies, Kotak Institutional Equities estimates

8 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Company-wise earnings of the KIE universe (` mn)

Source: Companies, Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 9

Company-wise earnings of the KIE universe (` mn)

Source: Companies, Kotak Institutional Equities estimates

10 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Company-wise earnings of the KIE universe (` mn)

Source: Companies, Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 11

Company-wise earnings of the KIE universe (` mn)

Source: Companies, Kotak Institutional Equities estimates

12 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Company-wise earnings of the KIE universe (` mn)

Source: Companies, Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 13