ValueGuide Sep2020

ValueGuide
September 2020
Intelligent Investing Regular Features Products & Services Trader’s Edge
Stock Idea Report Card PMS Technical View

Stock Updates Earnings Guide MF Picks Currencies
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CONTENTS
From the Editor’s Desk EQUITY

FUNDAMENTALS
India’s GDP growth for
Q1FY021 showed a sharp 3R Stock Idea 07 REGULAR FEATURES
contraction of 23.9% y-o-y, Stock Idea 08 Report Card 04
the result of the deep Stock Update 10 Earnings Guide 54
impact of COVID-19 across Sector Update 41
sectors, barring agriculture
that remained a sole silver TECHNICALS DERIVATIVES
lining. The steep cut in Q1
Nifty 44 View 45
GDP prompted economists
and ratings agencies to further reduce the GDP growth
estimates for the full year....
06
ADVISORY DESK DERIVATIVES
MID Trades 49 Derivatives Ideas 49
PMS DESK
ProPrime - Prime Picks 48
CURRENCY
FUNDAMENTALS
USD-INR 46 GBP-INR 46
EUR-INR 46 JPY-INR 46
TECHNICALS
MUTUAL FUND DESK 50
USD-INR 47 GBP-INR 47
EUR-INR 47 JPY-INR 47
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June 2017 2020
September 3 Sharekhan ValueGuide
REPORT CARD EQUITY FUNDAMENTALS
STOCK IDEAS STANDING (AS ON SEPTEMBER 03, 2020)

CURRENT PRICE AS ON PRICE 52 WEEK ABSOLUTE PERFORMANCE RELATIVE TO SENSEX
COMPANY
RECO 03-SEP-2020 TARGET HIGH LOW 1M 3M 6M 12M 1M 3M 6M 12M
Automobiles
Apollo Tyres Buy 124 135 197 74 7.3 20.7 -11.5 -29.7 3.7 5.2 -12.9 -33.7
Ashok Leyland Buy 69 72 88 34 40.2 51.8 -4.1 10.9 35.5 32.3 -5.6 4.5
Bajaj Auto Buy 2895 3500 3315 1793 -2.5 2.7 6.9 6.6 -5.8 -10.5 5.3 0.4
Hero MotoCorp Buy 2941 3300 3180 1475 8.7 26.1 43.7 14.6 5.1 9.9 41.5 8.0
M&M Buy 644 750 656 246 6.9 34.6 35.8 27.4 3.4 17.3 33.7 20.0
Maruti Suzuki Buy 7072 8000 7755 4002 11.2 24.2 10.8 21.3 7.5 8.2 9.1 14.3
TVS Motor Buy 435 470 503 240 9.0 22.7 6.1 19.0 5.4 6.9 4.6 12.1
BSE Auto Index 18162 19057 10141 9.1 23.1 16.1 19.2 5.4 7.3 14.4 12.2
Banks & Finance
Axis Bank Buy 475 585 766 285 10.6 20.3 -30.4 -26.6 6.9 4.9 -31.5 -30.9
Bajaj Finance Buy 3617 3800 4923 1783 11.8 56.4 -15.6 11.3 8.1 36.3 -16.9 4.8
Bajaj Finserv Buy 6355 7500 10297 3986 3.1 23.6 -27.8 -9.5 -0.4 7.8 -28.8 -14.7
Bank of Baroda Hold 47 56 108 36 1.6 10.4 -35.5 -49.3 -1.8 -3.8 -36.4 -52.2
Bank of India Hold 50 53 80 30 3.3 24.1 4.6 -21.0 -0.2 8.2 3.0 -25.6
Federal Bank Buy 56 60 99 36 6.4 21.9 -33.3 -32.1 2.8 6.2 -34.3 -36.0
HDFC Buy 1810 2113 2500 1473 1.7 2.6 -17.9 -13.8 -1.7 -10.6 -19.1 -18.8
HDFC Bank Buy 1131 1400 1304 739 8.6 12.7 -1.6 -49.7 4.9 -1.8 -3.1 -52.6
ICICI Bank Buy 383 485 552 269 9.0 10.0 -24.7 -3.7 5.4 -4.1 -25.9 -9.3
LIC Housing Finance Hold 303 345 486 186 17.5 23.8 -5.4 -26.1 13.6 7.9 -6.8 -30.4
Max Financial Buy 614 720 642 280 14.0 33.2 3.8 46.9 10.2 16.1 2.3 38.3
Punjab National Bank Hold 35 40 70 26 5.8 11.3 -22.4 -42.4 2.3 -3.0 -23.5 -45.8
SBI Buy 213 280 351 150 11.2 22.5 -25.3 -22.5 7.5 6.7 -26.4 -27.0
BSE Bank Index 26717 37193 18430 9.5 14.0 -18.9 -12.5 5.9 -0.7 -20.1 -17.5
Consumer goods
Asian Paints New Ide
a Buy 1978 2275 2016 1432 15.4 21.2 7.0 28.9 11.6 5.6 5.4 21.4
Britannia Buy 3747 4200 4015 2101 -1.8 8.6 22.3 42.1 -5.1 -5.4 20.5 33.9
Emami Buy 369 440 380 141 54.1 97.7 47.6 23.4 48.9 72.3 45.4 16.2
Godrej Consumer Products Buy 672 810 772 425 -2.9 2.5 6.4 15.2 -6.2 -10.7 4.8 8.5
Hindustan Unilever Buy 2139 2550 2614 1756 -2.7 0.9 -1.8 15.8 -5.9 -12.1 -3.2 9.1
ITC Buy 192 250 266 135 -1.0 -4.2 2.2 -21.2 -4.3 -16.5 0.7 -25.8
Jyothy Laboratories Buy 141 170 185 86 7.7 28.3 14.7 -0.4 4.1 11.8 13.0 -6.2
Marico Buy 380 420 404 234 3.2 13.9 28.6 -1.2 -0.2 -0.7 26.7 -6.9
New Ide
Tata Consumer Products Ltd a Buy 578 630 592 214 28.6 51.6 65.7 116.7 24.3 32.1 63.3 104.1
Zydus Wellness Buy 1621 1780 1859 1070 -4.8 24.7 11.7 -3.0 -8.0 8.7 10.0 -8.6
BSE FMCG Index 11560 12378 8491 0.8 4.4 5.9 6.2 -2.6 -9.0 4.3 0.0
IT / IT services
HCL Technologies Buy 709 820 729 376 2.4 22.4 26.0 -37.0 -1.0 6.7 24.1 -40.7
Infosys Buy 935 1120 986 511 -1.5 32.2 23.3 13.9 -4.8 15.2 21.5 7.3
New Ide
L&T Technology Services a Buy 1580 1600 1780 995 4.1 23.7 -4.0 -4.0 0.6 7.8 -5.4 -9.5
Persistent Systems Buy 1019 1220 1128 420 7.1 78.6 44.3 82.4 3.6 55.7 42.1 71.8
Tata Consultancy Services Buy 2300 2600 2357 1504 2.2 9.8 10.4 2.4 -1.2 -4.3 8.7 -3.6
New Ide
Tech Mahindra a Buy 760 850 846 470 16.3 30.4 -1.5 8.1 12.5 13.7 -2.9 1.8
Wipro Hold 283 300 291 160 0.6 30.2 23.6 10.4 -2.8 13.5 21.7 4.0
BSE IT Index 18366 18551 10937 2.0 25.1 18.2 13.3 -1.4 9.0 16.4 6.7
Capital goods / Power
CESC Buy 611 825 855 366 9.8 0.4 0.1 -19.0 6.1 -12.5 -1.4 -23.7
Finolex Cable Hold 294 360 433 165 9.0 15.1 -9.3 -19.2 5.3 0.3 -10.7 -23.9
Greaves Cotton Hold 81 95 154 66 -0.1 -0.6 -37.5 -33.2 -3.4 -13.4 -38.5 -37.1
Kalpataru Power Transmission Buy 254 325 515 170 10.5 19.7 -23.0 -43.7 6.8 4.3 -24.2 -47.0
KEC International Buy 325 370 358 155 19.3 36.5 3.7 33.3 15.3 19.0 2.2 25.6
Thermax Hold 790 815 1180 644 7.6 8.4 -12.2 -20.8 4.0 -5.5 -13.5 -25.4
Triveni Turbine Hold 74 ** 115 46 16.3 12.1 -18.7 -28.2 12.4 -2.3 -19.9 -32.4
V-Guard Industries Buy 169 200 260 149 3.5 -8.0 -16.3 -23.9 0.0 -19.8 -17.6 -28.3
September 2020 4 Sharekhan ValueGuide

EQUITY FUNDAMENTALS REPORT CARD
STOCK IDEAS STANDING (AS ON SEPTEMBER 03, 2020)
CURRENT PRICE AS ON PRICE 52 WEEK ABSOLUTE PERFORMANCE RELATIVE TO SENSEX
COMPANY
RECO 03-SEP-2020 TARGET HIGH LOW 1M 3M 6M 12M 1M 3M 6M 12M
BSE Power Index 1742 2057 1275 13.3 13.7 -1.5 -6.1 9.5 -0.9 -3.0 -11.6
BSE Capital Goods Index 14244 19428 9499 10.4 13.0 -7.5 -14.6 6.7 -1.5 -8.8 -19.6
Infrastructure / Real estate
Larsen & Toubro Buy 961 1250 1554 661 4.0 3.2 -18.4 -26.6 0.6 -10.0 -19.6 -30.9
Sadbhav Engineering Buy 50 75 148 23 12.5 21.0 -23.0 -63.7 8.8 5.4 -24.2 -65.8
CNX Infra Index 3234 3392 2073 2.1 9.7 6.9 9.4 -1.3 -4.4 5.3 3.1
BSE Real estate Index 1771 2565 1259 11.4 15.3 -17.0 -11.4 7.7 0.5 -18.2 -16.5
Oil & gas
Mahanagar Gas New Ide
a Buy 926 1380 1247 666 -4.4 -9.6 -8.6 10.5 -7.6 -21.2 -9.9 4.1
Oil India Ltd Hold 97 106 175 66 2.9 8.5 -12.1 -34.1 -0.6 -5.4 -13.4 -37.9
Petronet LNG Buy 239 300 302 171 -3.1 -5.9 -2.5 -9.9 -6.3 -18.0 -3.9 -15.1
Reliance Ind Buy 2112 2400 2199 868 -1.8 33.7 57.7 75.8 -5.1 16.5 55.4 65.6
BSE Oil and gas Index 13142 15772 8724 0.1 6.3 3.9 1.4 -3.3 -7.3 2.3 -4.5
Pharmaceuticals
Aurobindo Pharma Hold 826 975 968 281 -4.4 8.8 58.6 37.9 -7.6 -5.2 56.2 29.9
Cadila Healthcare Hold 387 445 412 213 -3.9 6.7 51.2 68.0 -7.1 -7.0 49.0 58.2
Cipla Buy 739 875 814 357 3.5 11.8 65.0 56.8 0.0 -2.6 62.5 47.7
Divi's Labs Buy 3278 3400 3379 1571 21.9 35.4 50.7 97.0 17.8 18.0 48.4 85.5
IPCA Lab Buy 2015 2365 2175 844 1.4 33.0 41.1 110.5 -2.0 15.9 39.0 98.3
Lupin Hold 962 1040 1035 505 2.3 6.0 44.9 29.7 -1.2 -7.7 42.7 22.2
Sun Pharmaceutical Industries Hold 523 575 565 315 -1.0 5.7 29.0 22.7 -4.3 -7.9 27.1 15.6
Torrent Pharma Hold 2798 ** 3040 1555 -1.1 18.3 27.8 65.5 -4.4 3.1 25.9 55.9
BSE Health Care Index 19025 19846 10948 2.1 18.2 35.1 48.9 -1.3 3.0 33.1 40.3
Building materials
Grasim Hold 726 ** 837 380 16.2 19.9 5.3 4.6 12.3 4.5 3.7 -1.5
JK Lakshmi Cement New Ide
a Buy 270 372 389 180 -9.6 13.0 -10.0 -16.1 -12.6 -1.5 -11.4 -21.0
Pidilite Industries New Ide
a Buy 1449 1645 1710 1186 7.9 -3.3 -8.5 6.6 4.3 -15.7 -9.9 0.4
Shree Cement Hold 20446 23453 25341 15500 -5.3 -4.5 -12.1 15.4 -8.5 -16.8 -13.5 8.6
The Ramco Cements Buy 719 803 883 457 4.8 16.2 -4.1 2.2 1.3 1.3 -5.5 -3.8
UltraTech Cement Buy 3950 5000 4753 2913 -1.3 3.8 -5.4 1.9 -4.6 -9.6 -6.8 -4.1
Discretionary consumption
Arvind @ Buy 35 43 59 19 17.3 -6.1 -5.6 -25.8 13.4 -18.2 -7.0 -30.1
Century Plyboards (India) Buy 161 193 182 95 22.6 50.1 3.7 18.5 18.5 30.8 2.2 11.6
Info Edge (India) Buy 3433 3650 3575 1580 7.3 36.1 29.2 62.0 3.7 18.6 27.3 52.6
Inox Leisure Hold 296 ** 511 158 25.2 10.2 -22.3 10.9 21.0 -4.0 -23.4 4.5
Relaxo Footwear # Buy 650 825 830 461 6.0 -16.2 -6.0 41.0 2.5 -27.0 -7.4 32.8
Titan Company Limited Buy 1186 1200 1390 720 10.3 22.1 -5.2 14.3 6.6 6.4 -6.6 7.6
Wonderla Holidays Hold 187 ** 300 105 35.7 40.0 -7.6 -22.2 31.2 22.0 -9.0 -26.7
Diversified / Miscellaneous
Bajaj Holdings Buy 2648 3345 3949 1472 2.0 18.2 -20.3 -19.8 -1.4 3.0 -21.5 -24.4
Bharat Electronics Buy 108 135 122 56 8.2 49.0 44.9 1.8 4.6 29.8 42.7 -4.1
Bharti Airtel Buy 538 710 612 326 -1.9 -6.1 4.2 55.6 -5.2 -18.2 2.6 46.5
Coromandel International New Ide
a Buy 767 1000 831 376 -1.8 20.2 24.1 101.8 -5.0 4.7 22.2 90.0
Gateway Distriparks Buy 100 110 138 71 18.8 21.8 -20.1 -1.0 14.9 6.2 -21.3 -6.7
PI Industries Buy 1885 2250 2154 974 2.9 21.0 19.6 59.9 -0.5 5.5 17.8 50.6
Ratnamani Metals and Tubes Buy 1184 1250 1384 716 7.3 28.6 -11.0 29.2 3.8 12.1 -12.3 21.7
Supreme Industries Limited Buy 1347 1549 1430 791 3.8 27.0 8.8 23.1 0.3 10.7 7.2 15.9
UPL Buy 522 550 618 240 13.0 23.5 2.0 -7.1 9.3 7.7 0.5 -12.5
BSE500 Index 15145 16158 9758 5.1 16.5 3.2 8.2 1.6 1.6 1.7 1.9
CNX500 Index 9535 10175 6152 5.1 16.5 3.0 7.9 1.6 1.5 1.4 1.7
CNXMCAP Index 17214 18496 10750 10.1 23.7 2.8 11.4 6.4 7.8 1.3 4.9
** Price under review @ Reco price adjusted for demerger # Reco price adjusted for bonus ^ Reco price adjusted for stock split
* Price targets will be reviewed after we get further clarity on operations from companies post Q4FY2020 result announcements.
New Idea: We have converted the existing Viewpoint under our active coverage into a Stock Idea

From the Editor’s Desk
From the Editor’s Desk Matter of perspective
India’s GDP growth for Q1FY021 showed a sharp contraction of 23.9% y-o-y, the result of the
deep impact of COVID-19 across sectors, barring agriculture that remained a sole silver lining.
The steep cut in Q1 GDP prompted economists and ratings agencies to further reduce the GDP
growth estimates for the full year. In past few days, the consensus estimates on India’s GDP
growth has been downgraded to an average of negative 9-10% from the negative 6-6.5% earlier.
Certainly, the headline numbers aren’t reassuring at all. However, it is also a matter of perspective.
For an optimist, the estimate of 9-10% contraction in GDP for the full year on the back of a 23.9%
decline in Q1 essentially means an implied contraction of 3-3.5% (roughly) for the remaining nine
months of the year. It also means an improving trend in quarterly GDP growth data from Q2 to
Q4 this fiscal with perhaps positive growth in Q4 of this year. Well, an improving trend from the
nadir of economic activity would certainly sound positive in the backdrop of a liquidity-driven
global rally in equities.
This brings us to another interesting topic of debate i.e. the nature of expected economic
recovery and which alphabet would define it. The verdict seems to be split between the hopes
of a V-shaped recovery projected by certain voices in government or academia, whereas the
chorus is also growing for expectation of a prolonged slowdown defined by U-shaped recovery
in the economy.
But the third interesting perspective is the K-shaped recovery that carries lot of importance for
equity investors. In a K-shaped recovery, there are certain sectors that would recover quickly,
while some of the sectors would continue to slide or languish before stabilising or looking up.
The race to catch the COVID-immune and faster COVID recovery sectors/stocks is already
playing out in the Indian markets. No wonder, sectors like IT services, pharma and consumer
staples have outperformed considerably and trade at premium valuations now. COVID recovery
plays like auto and other consumer discretionary sectors are also catching up pretty quickly.
On the other hand, banks & financials is an important part of equity markets that have lagged
the entire rally in the equity markets since April 2020. The pressure on banks is understandable
given the stress in many sectors and the whole experiments of giving across the board
moratorium for six months to borrowers. But major events like end of moratorium period on
August 31 and the guidelines for recast of loans in across 26 sectors already behind us, banks
could emerge as new driver of further upside from here.
Having said this, the road ahead could be bumpy given the plethora of issues like growing
number of COVID cases in India, Sino-US conflicts, disturbance on Indian borders and the run-
up to US elections. The market did give some jitters lately. However, the central bankers seem
determined to keep the party going in the equity markets globally.

EQUITY FUNDAMENTALS STOCK IDEA
Pidilite Industries Limited

Date: August 07, 2020 Investment ka mazboot jod
Reco Price
Buy PT : Rs. 1,645 Rs. 1,377
Summary
• We initiate coverage on Pidilite Industries Limited (Pidilite) with Buy recommendation and assigning a price target of Rs. 1,645.
• Pidilite leads domestic market for adhesives, sealants and construction chemicals. Strong brands (including Fevicol, Dr.Fixit and
Fevikwik) give it a competitive edge over peers.
• FY2021 will be affected by impact of Covid-19 spread resulting into a wash-out Q1FY21. With recovery started flowing in
(especially in tier-III and IV towns), FY2022 is expected to witness strong bounceback. Fall in VAM prices would help margins
continue rise.
• Launch of premium products in core categories, foray into new categories (largely consumer-centric), wider distribution reach
and expansion into international markets remain key growth drivers in the medium to long term.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Pidilite-Aug07_2020_3R_StockIdea.pdf
Tech Mahindra
Date: August 14, 2020 Pressing all the right buttons
Reco Price
Buy PT : Rs. 850 Rs. 696
Summary
• Initiate coverage on Tech Mahindra (Tech M) with Buy rating and price target of Rs. 850, given potential 5G opportunity and
anticipated rise in margins.
• Our positive stance underpins company’s comprehensive capabilities in telecom space, improving capabilities in enterprise
business and a better-go-to market strategy.
• Tech M has successfully transformed itself from a telecom-centric player to one with a wide portfolio of differentiated offerings
in the enterprise segment.
• Key levers for margin improvements are (1) reduction in subcontracting expenses, (2) higher offshore mix, (3) better profitability
of acquired entities and (4) exit from non-profitable operations.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Tech_M-Aug14_2020_3R_StockIdea.pdf
Sharekhan Limited, its analyst or dependant(s) of the analyst might be holding or having a position in the companies mentioned in the article.

STOCK IDEA EQUITY FUNDAMENTALS
Recommendation Reco Price Price Target/ Upside (%)

Date Company Report Type
Latest Chg (Rs.) Latest Chg
Aug 05, 2020 Birlasoft Limited New Idea POSITIVE - 125 28-30% -
Summary
• We initiate viewpoint coverage on Birlasoft Limted with a Positive view and expect a 28-30% upside in the next 10-12 months.
• Stock trades at 8x of FY2023E earnings, implies reasonable valuation; strong balance sheet (debt-free) with improving return
ratios; cash & cash equivalents account for 24% of market-cap.
• Deep relationship with existing clients, verticalised sales structure, strong deal wins and defined incentives of cross-sell/up-sell
would drive growth going forward.
• We model revenue to grow at 9.3% CAGR over FY2021-23E, while earnings to grow at 25% CAGR led by improvement in
profitability and lower tax provision.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Birlasoft-Aug05_2020.pdf
Aug 07, 2020 Honeywell Automation India Limited New Idea POSITIVE - 31,008 18-20% -
Summary
• We initiate viewpoint coverage on Honeywell Automation India (HWA) and expect an 18-20% upside.
• Being a leader in automation and software solutions, Honeywell is expected to sustain healthy earnings growth profile led by
multiple growth drivers - Make in India, NIP, increasing automation.
• Company caters to diverse industries in India and across globe, largely shielding itself from economic downturns.
• An asset-light model, strong cash position, strong cash flow generation, healthy return ratios, consistent dividend-paying record
are some of company’s salient features.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Honeywell-Aug07_2020.pdf
Aug 21, 2020 Carborundum Universal Limited New Idea POSITIVE - 280 23-25% -
Summary
• We re-initiate viewpoint coverage on Carborundum Universal Limited (CUMI) with a Positive view and expect 23-25% upside.
• CUMI is at the cusp of domestic economic revival and improving its overseas operations aided by its capacity expansions,
success of new products, and being an alternative global supplier.
• The company has strong operating cash flow generation, which ensures to meet capex requirement without leverage and a
consistent dividend paying record.
• The Ceramics and EMD verticals are expected to grow at higher revenue trajectory during FY2021-FY2023E with abrasives
growth reviving from low base.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Carborundum-Aug21_2020_New.pdf

EQUITY FUNDAMENTALS STOCK IDEA
Recommendation Reco Price Price Target/ Upside (%)

Date Company Report Type
Latest Chg (Rs.) Latest Chg
Aug 24, 2020 Suprajit Engineering Ltd. New Idea POSITIVE - 183 25-27% -
Summary
• We re-initiate viewpoint coverage on Suprajit Engineering Ltd (SEL) with positive view and expect 25-27% upside from current
levels.
• With Government unlock measures and increased preference for personal transport, SEL is witnessing strong recovery in the
automotive cable segment. (60% of revenues). Non automotive cable division (20% of revenues) is also witnessing strong
recovery driven by unlock measures and market share gains. Overall, SEL expects to reach Pre-COVID 19 levels in Q2FY21.
• SEL is expected to continue outpacing the industry driven by increased share of business with clients, entry into newer
segments and markets.
• Return ratios are expected to improve significantly driven by healthy topline growth, minimal capex requirement & margin
improvement. Valuations at 18.7x and 14.8x FY22 and FY23 earnings are lower than long term historical average.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Suprajit_Engg-Aug24_2020.pdf
Aug 25, 2020 Schaeffler India Limited New Idea POSITIVE - 3,750 18-20% -
Summary
• We initiate viewpoint coverage on Schaeffler India Ltd (SIL) with positive view and expect 18-20% upside from current levels.
• Automotive and industrial business are witnessing improvement in demand driven by unlock measures from Government;
expect recovery to accelerate in CY22 with normalisation of demand POST COVID-19..
• Automotive business to see witness increased content per vehicle under BS6 norms, new client additions, industrial business
to benefit from increased business in railways and wind segment. Export potential also strong for SIL.
• SIL is a debt free company with return ratios in excess of 15%. Stock has corrected by 25% from its 52week high. P/E of 23.1x
CY22 earnings are lower than historical averages.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Schaeffler-Aug25_2020.pdf

Stock Update EQUITY FUNDAMENTALS
Price Target/ Upside

Recommendation Reco Price
Date Company Report Type (%)
(Rs.)
Latest Chg Latest Chg
Aug 03, 2020 Relaxo Footwears Stock Update BUY  597 825 
Summary
• Relaxo Footwears Limited’s (Relaxo’s) Q1FY2021 performance was better than expectations in light of NIL business during the
45-day lockdown and restriction on out-of-home travel. Revenue and PAT decreased by 44% and 52%, respectively.
• Value-for-money products, increasing presence on e-commerce platform and good relation with dealers channel would help
Relaxo to post revival in performance in coming quarters.
• Lower per capita consumption in India at 1.66 pairs per annum as compared to developed countries at 6-7 pairs per annum,
lower penetration of company in southern markets and strong product portfolio straddling the pyramid remain key catalysts of
growth in the long run.
• We expect footwear segment to see early recovery post normalisation of the pandemic situation; we maintain a Buy
recommendation on stock with an unchanged PT of Rs. 825.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Relaxo-Aug03_2020.pdf
Aug 03, 2020 Bank of India Stock Update HOLD  48 53 
Summary
• Bank of India (BOI) posted positive results for Q1FY2021 with operational performance better than expectations, and sequentially
asset quality improving in both absolute as well as percentage basis.
• Moratorium book stood at 53% by value (up from 46% in Q4), but around ~10% borrowers have two or more EMIs due, which
is reasonable.
• Going forward, high PCR and expected recovery are cushions, but we expect asset-quality niggles to continue to impact
FY2021 performance.
• We maintain our Hold rating on the stock with a revised price target of Rs. 53.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/BOI-Aug03_2020.pdf
Aug 03, 2020 Vinati Organics Limited Viewpoint NEUTRAL  992 8-10% 
Summary
• We remain Neutral on Vinati Organics (Vinati) and expect a potential upside of 8-10% as environment remains challenging.
• However, we like the company’s business model from a long-term perspective as it operates in niche segments and has an
exceptional product basket with a significant market share globally.
• Owing to market environment, ATBS capacity addition of 14,000 MT p.a. has been delayed; however commissioning is likely in
Q3FY21E. The management sees ramp up in Butyl phenol (35,000 MT p.a.) to be gradual as COVID-19 has led to slower pick
up than anticipated.
• We expect revenue growth to be driven by expanded capacities while margins to remain under pressure as low margin Butyl
phenol starts contributing to revenues; we expect revenue and PAT CAGR of 22.4% and 15.3% respectively over FY20-22E.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Vinati-Aug03_2020.pdf
Upgrade  No change  Downgrade 

Note: The arrow indicates change in call and price target, if any, vis-à-vis the previous report

EQUITY FUNDAMENTALS Stock Update
(Rs.)
Aug 03, 2020 Exide Industries Viewpoint POSITIVE  155 23-25% 
Summary
• Exide Industries Ltd (Exide) delivered better than expected results. Revenues beat estimates driven by a surge in the auto
replacement & UPS demand; better mix and cost control led to higher than expected OPM; Exide reported profit as against
expectations of loss.
• We expect automotive replacement demand (33-35%) of Exide revenues to recover fast given its critical functionality, improving
share of organized players and opening of economy by the Government..
• The management indicated that the institutional OEM business (automotive and industrial) is also witnessing gradual pick-up in
demand riven by strong rural sentiments, pent up demand and increase in industrial activities. With improving OEM demand,
auto ancillary players like Exide would also catch up..
• Valuations at 12.8x FY22 core earnings are lower than long term historical of 17x. Hence, we retain positive view on the stock
and expect an upside of 23-25% from the current levels.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Exide-Aug03_2020.pdf
Aug 03, 2020 Future Lifestyle Fashions Viewpoint BOOK OUT - 109 - -
Summary
• Future Lifestyle Fashions’ (FLF’s) Q4FY2020 results were affected by the lockdown, resulting in closure of stores at the fag-end
of the quarter and a sharp decline in OPM (led by lower operating leverage).
• Revenue grew by just 4.7%; comparable OPM fell sharply to 0.3% as against 8.9% in Q4FY2019 and comparable adjusted loss
stood at Rs. 88 crore as against profit of Rs. 51 crore in Q4FY2019.
• FY2021 will be tough as H1FY2021 will be badly affected by the lockdown, while slow recovery might be seen in H2FY2021.
Debt on books (excluding lease liability) has gone up by almost Rs. 500 crore, which will further have an impact on the
company’s return profile.
• In view of near-term performance headwinds and stress on the balance sheet, we advise investors to book out the stock and
prefer retail companies with better parental support such as Trent.
Read report - https://www.sharekhan.com/MediaGalary/Equity/FutureLife-Aug03_2020.pdf
Aug 04, 2020 Godrej Consumer Products Stock Update BUY  692 810 
Summary
• Q1FY2021 numbers were resilient - Consolidated revenues were flat, while OPM expanded by 77 bps driving up adjusted PAT
by 6%.
• Domestic volumes grew 3%. Household insecticides (HI) grew by 27% and hygiene products rose by 15%. Around 85% of global
portfolio grew by 9% during the quarter.
• Management expects HI category to retain strong show in India and Indonesia, gradual recovery in Africa business and strong
traction in new products would help GCPL perform better in coming quarters.
• New leadership focuses on sustainable revenue growth, steady improvement in OPM and return ratios. We maintain our Buy
recommendation with unchanged PT of Rs. 810.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/GCPL-Aug04_2020.pdf


(Rs.)
Aug 04, 2020 Indian Oil Corporation Ltd Viewpoint POSITIVE  87 30-32% 
Summary
• Operating profit at Rs. 5,512 crore (down 34% y-o-y) missed our and street estimates due to unexpected refinery inventory loss
of Rs. 4,588 crore versus our expectation of a gain. Hence, reported GRM was negative at $2/bbl.
• Core GRM was strong at $4.3/bbl (up 19% y-o-y). Marketing EBITDA surged 3.3x q-o-q to Rs. 7,701 crore led by higher marketing
margin and product inventory gain of Rs. 1,392 crore. Petchem EBITDA/tonne at $200 (up 2x q-o-q).
• Expect strong Q2FY20 led by refinery inventory gain (crude cost at $33/bbl as on June 2020 versus spot oil price of $44/bbl).
Earnings poised for sharp recovery over FY21E-FY22E led by higher marketing margins, volume revival and inventory gains.
• We stay Positive on IOCL and expect a 30-32% upside as valuation is attractive at 5.8x FY22E EPS given improved earnings
prospects (expect 29%/19% EBITDA/PAT CAGR over FY20-FY22E), healthy RoE of 14% and dividend yield of 8%.
Read report - https://www.sharekhan.com/MediaGalary/Equity/IOCL-Aug04_2020.pdf
Aug 04, 2020 Gujarat Gas Limited Viewpoint POSITIVE  310 18-20% 
Summary
• Q1FY21 PAT at Rs. 59 crore (down 75% y-o-y) was slightly above our estimates as beat in EBITDA margin at Rs. 4.9/scm (up 4.5%
q-o-q) was partially offset by a miss in volume at 4.1 mmscmd (down 55% y-o-y). Gross margins surged by 18% y-o-y to Rs. 9.4/
scm on lower gas cost.
• Sharp recovery in Gujarat Gas’s (GGAS) volume to 9.5 mmscmd (95% of Q4FY2020 volume) and robust margin bodes well for
speedy earnings recovery. We expect the company to clock a PAT CAGR of 9% over FY2020-FY2022E.
• Long-term volume growth outlook remains robust as structural drivers like ban on polluting fuels and low LNG prices are well-
placed to boost industrial PNG demand. Robust FCF generation to make GGAS cash positive in next two years.
• Hence, we stay Positive on Gujarat Gas and expect an 18-20% upside despite a recent sharp run-up in stock price.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Gujarat_Gas-Aug04_2020.pdf
Aug 04, 2020 Dixon Technologies Viewpoint POSITIVE  7,957 13-15% 
Summary
• We retain our Positive stance on Dixon Technologies (Dixon) and expect a potential upside of 13-15%.
• We expect revenue and earnings CAGR of 36% and 45% during FY2020-2023E as we factor in revenue contribution from PLI
scheme in mobile phones and introduce FY2023E numbers.
• Expanded capacity in consumer electronics and home appliance coupled with PLI scheme in mobile phones to drive revenue
growth momentum while margin is likely to expand due to economies of scale and automation in lighting.
• Q1FY2021 performance adversely impacted due to COVID-19 resulting in decline in revenue, EBITDA and PAT by 55%, 68%
and 93% respectively.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Dixon-Aug04_2020.pdf

(Rs.)
Aug 05, 2020 Tata Consumer Products Limited Stock Update BUY  448 522 
Summary
• Tata Consumer Products Limited (TCPL, earlier Tata Global Beverages) clocked strong performance yet again in Q1FY2021;
revenues and adjusted PAT grew by 13% and 72%, respectively (on a comparable basis).
• The India beverages (including NourishCo), India foods and international beverages (excluding food services) businesses grew
by 11%, 19% and 23%, respectively, in Q1FY2021. Better revenue mix and efficiencies led to a 312 bps improvement in OPM.
• Expanding product portfolio with new products in the foods business, rise in consumption of branded tea in India, higher
growth in the Vietnam coffee business, instant coffee business and the US coffee business are some of the key revenue drivers
in the long run.
• New leadership is focusing on delivering consistent profitable growth and improving return ratios in the medium term. We stick
to our Buy recommendation with a revised PT of Rs. 522.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/TataConsumer-Aug05_2020.pdf
Aug 05, 2020 Cadila Healthcare Stock Update HOLD  396 445 
Summary
• Cadila reported better-than-expected performance for Q1FY2021. Revenues grew 4% y-o-y to Rs 3640 crore backed by strong
growth in the US business, while India business performed poorly. The adjusted PAT stood at Rs 454 cr, up 25% yoy.
• Cadila’s India business is witnessing a gradual pickup post June with relaxations in lockdown leading to rise in prescriptions,
however a meaningful revival is a key monitorable. The US business is well placed to grow backed by new product launches,
easing pricing pressures and strong pipeline.
• Cadila has submitted its responses to the USFDA for the approval of the Moraiya plant. Resolution of the USFDA issues is
critical from the growth perspective and would be a key point to watch for.
• Stock price has run up substantially by ~50% in almost past four months, leaving limited upside potential. We retain our Hold
recommendation on the stock with a revised PT of Rs. 445.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Cadila-Aug05_2020.pdf
Aug 05, 2020 Jyothy Laboratories Stock Update BUY  140 170 
Summary
• Jyothy Laboratories Limited (JLL) posted better-than-expected performance in Q1FY2021, with revenue and PAT growing by
2.5% and 25.3%, respectively, OPM expanded by 215 bps to 17.7%. Domestic business volume growth stood at 6%..
• JLL’s Q1 performance was boosted by strong 150% growth in the household insecticide (HI) segment and 17% growth in the
dishwashing segment. The fabric care segment posted a decline of 24%, affected by lower demand for post wash during the
lockdown..
• Recovery continues on month-on-month basis and the company continues to witness growth in July 2020 (with rural market
growth staying ahead of the urban market). The HI, hygiene, and dishwashing segments would drive growth in the near term.
OPM is expected to sustain at around 16%.
• We have revised our earnings estimates by 8-9% for FY2021/FY2022. We maintain our Buy recommendation on the stock with
a revised PT of Rs. 170.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Jyothy-Aug05_2020.pdf


(Rs.)
Aug 05, 2020 Astral Poly Technik Limited Viewpoint POSITIVE  951 10-12% 
Summary
• We reiterate our Positive view on Astral Poly Technik (Astral) and expect an upside of 10-12%.
• We expect revenue and earnings CAGR of 10.6% and 18.4%, respectively, over FY2020-FY2022E.
• All facilities are operating at 90% utilisation currently; pickup in urban markets expected; the company turns net debt-free and
capex intensity is likely to reduce going forward.
• COVID-19 led lockdown impacts performance, leading to revenue, EBIDTA, and PAT declining by 33%, 42%, and 58% y-o-y,
respectively; however, demand offtake was encouraging in rural markets.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Astral-Aug05_2020.pdf
Aug 06, 2020 PI Industries Stock Update BUY  2,036 2,250 
Summary
• We reiterate Buy rating on PI Industries Limited with a revised PT of Rs.2,250 per share.
• Funds raised via QIP to be deployed in 5-6 quarters and meet inorganic growth aspirations, which will aid diversification as well.
• Demand environment remains encouraging in both domestic (normal monsoon) and export markets (order book of $ 1.5 billion),
guidance for over 20% growth in each; capex guidance of Rs. 550-600 crore remains for FY2021E.
• Company delivered strong performance in challenging times with revenue, EBITDA and PAT rising by 41%, 50%, and 43%,
respectively.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/PI-Aug06_2020.pdf
Aug 06, 2020 Apollo Tyres Stock Update BUY  116 135 
Summary
• Apollo Tyres Limited (ATL) Q1FY21 results were ahead of estimates, mainly driven by better-than-expected revenues. A sharp
recovery in replacement demand in both domestic as well as the European businesses helped revenue exceed estimates..
• With the government opening up the economy, domestic replacement demand has recovered sharply and has exceeded
expectations. Also, with Govt move to restrict tyre imports, ATL is likely to benefit. European replacement sales are also
recovering with opening up of economy.
• With better product mix, cost control measures and restructuring in European operations we expect margins to improve and
expect strong 39% earnings CAGR over FY2020-22 period.
• Renowned private equity firm Warburg Pincus subscribing to compulsorily convertible preference shares in March 2020
(convertible at a price of Rs 171.4 per equity share and resulting in equity stake of ~10%) exudes confidence. Hence, we retain
a Buy rating on the stock with unchanged PT of Rs 135.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Apollo-Aug06_2020.pdf

(Rs.)
Aug 06, 2020 Inox Leisure Stock Update HOLD  235 270 
Summary
• We maintain our Hold rating on INOX Leisure Limited (ILL) owing to delay in return of normalcy and maintained our PT of Rs.
270.
• A wash-out quarter as expected. However, cost management remained robust amid shut-down of cinema; monthly cash burn
was lowered by 25% to Rs 11 - 12 crores.
• The board has approved the enabling resolution for fund raising up to Rs 250 Cr through the issuance of Equity Shares/other
securities after the re-opening of cinema.
• FY2021 is going to be a wash-out years owing to extended lockdown restrictions, risk of box office clashes in short window and
subdued occupancy in 2HFY2021; modeled strong recovery in FY2022E.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Inox-Aug06_2020.pdf
Aug 06, 2020 Triveni Turbine Stock Update HOLD  64 72 
Summary
• We retain our Hold rating on Triveni Turbine Limited (TT) with a revised PT of Rs.72, considering near-term uncertainties
regarding executionand order booking.
• Tepid results for Q1FY2021, as revenue declined sharply,affected by COVID-19 led lockdown,although margins improved
because of favourable raw-material cost and cost rationalisationalong with lower tax,leading to lower decline of PAT. Order
inflow remained weak with marginaldecline in order book during Q1FY2021.
• Management has largely maintained its earlier guidance i.e., decline in revenue by 10% to 15% and profit by 15% to 20% for
FY2021 in the worst-case scenario. Although management expects better order inflow during H2FY2021 due to postponement
of order finalisationalong with healthy enquiry pipeline, it expects deliveries of orders more bunched up towards FY2022.
• Balance sheet remains strong with strong cash position and current order book remaining healthy at 0.9x its TTM consolidated
revenue.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Triveni-Aug06_2020.pdf
Aug 06, 2020 Polyplex Corporation Limited Viewpoint POSITIVE  700 25% 
Summary
• We stay Positive on Polyplex Corp (PCL) and expect a 25% upside as robust earnings growth outlook, strong balance sheet
and dividend yield of 4% makes valuation attractive at 5.7x FY22E EPS, despite 148% run-up in stock price from 52-week low
in March-2020.
• Strong demand traction for flexible packaging would keep utilisation high at 93%/100% in FY2021E/FY2022E (versus 87% in
FY2020) and drive a 7% volume CAGR over FY2020-FY2022E for PCL.
• Favourable demand-supply for BOPET films in near term, low PTA & MEG prices and rising share of value-added films would
drive margins.
• Decent volume growth and steady margin expansion to drive 19% PAT CAGR over FY2020-FY2022E; high cash on books at
Rs. 499 crore lends comfort to investors.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Polyplex-Aug06_2020.pdf


(Rs.)
Aug 06, 2020 Indian Hotels Company Limited Viewpoint POSITIVE  78 33-35% 
Summary
• Indian Hotels Company Limited’s (IHCL) Q1FY2021 performance was affected by non-operational rooms during the lockdown.
Revenue declined by 86% y-o-y.
• Green shoots for revival visible in June with overall domestic occupancy reaching 37% on operational inventory from 10% in
March. Ginger brand crossed 40% occupancy mark. Management expects overall occupancy to cross 50% mark by Q3FY2021.
• Project RESET resulted in Rs. 55 crore revenue and 51% reduction in cost in Q1. The project is expected to help in faster
recovery in performance in a normal business environment.
• With balance sheet remaining stable (net debt/equity at 0.4x) and opportunity of market share gains, we believe IHCL is the
best play in the hotel industry with its strong room inventory and asset-light model. We maintain our Positive view with 33-35%
upside.
Read report - https://www.sharekhan.com/MediaGalary/Equity/IndianHotels-Aug06_2020.pdf
Aug 07, 2020 Mahindra & Mahindra Stock Update BUY  601 750 
Summary
• Mahindra & Mahindra (MM+MVML) Q1FY21 results were below our as well as street estimates due to lower than anticipated
margin performance in automotive segment. The tractor segment’s margins surprised positively with y-o-y improvement.
• Due to strong farm sentiments, M&M expects tractor industry to grow in FY2021. We expect M&M to gain market share in
tractors, Automotive segment is also witnessing recovery due to robust rural sentiments and increased preference for personal
transport.
• Tighter capital allocation strategy of no fund infusion in businesses with an unclear path to profitability will continue and M&M
is evaluating the performance of its international subsidiaries.
• Valuations at 12x core FY22 earnings are lower than long term historical average. We retain Buy rating on the stock with
unchanged PT of Rs 750. M&M continues to remain our preferred pick in the automotive space.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/MnM-Aug07_2020.pdf
Aug 07, 2020 JK Lakshmi Cement Limited Stock Update BUY  286 372 
Summary
• We retain a Buy rating with unchanged PT of Rs. 372 given an attractive valuation and likely earnings bounceback from FY2022.
• Standalone revenues were in-line in Q1FY2021, while OPM and PAT lagged estimates, owing to lower realisation led by higher
clinker sales and unfavourable geographical sales mix.
• Management expected to announce much-awaited brownfield expansions in Q3FY2021 which would provide next leg of
growth.
• Company has slashed debt and improves its cash position significantly, which would help planned expansions..
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/JK_Lakshmi-Aug07_2020.pdf

(Rs.)
Aug 07, 2020 Cipla Stock Update BUY  729 875 
Summary
• Cipla reported impressive performance for Q1FY2021 lead by a sturdy performance of the India business and cost optimization
measures, leading to margin expansion. Sales at Rs 4346 cr grew 9% YoY while PAT grew 20.8% YoY to Rs 577.9 cr.
• India business to be the key growth driver, while US business to exhibit gradual improvement. South Africa business to grow
at a healthy pace .
• Healthy topline growth, strong earnings visibility and a healthy balance sheet augurs well and would support multiple expansion.
• We maintain our Buy recommendation on the stock of Cipla with revised PT of Rs. 875.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Cipla-Aug07_2020.pdf
Aug 07, 2020 Emami Limited Stock Update BUY  258 320 
Summary
• We upgrade Emami to Buy with a revised price target of Rs. 320 as headwinds of promoter pledges recede (reduced to 55%
from 95% earlier) and management re-focuses on driving growth of consumer business.
• The company launched slew of new products (that contributed ~5% in Q1FY2021), brought in new business head for healthcare
segment and a sales head to renew growth strategies in the coming years.
• Steady demand for health & hygiene products (that contributes ~43% of revenue) and raw material tailwinds will help Emami
clock decent numbers in FY2021 and double-digit revenue and earnings growth in FY2022.
• Stock currently trades at a stark discount of 15.3x its FY2022E earnings compared to its historical average and hence risk-
reward ratio is favourable as concerns ease.
Read report -https://www.sharekhan.com/MediaGalary/StockIdea/Emami-Aug07_2020.pdf
Aug 07, 2020 Lupin Stock Update HOLD  879 965 
Summary
• Lupin’s Q1FY21 numbers were weak; sales declined by 9% yoy, as US revenue fell by 21%, while India revenues declined 1.7%
y-o-y. Operating profits were down by 34.6% y-o-y due to high cost pressures. PAT declined by 59.6% y-o-y to Rs. 106.9 crore.
• Lupin expects US revenues to improve gradually, led by ramp-up of Levothyroxin, stabilisation in base business, new launches
and re-introduction of Metformin.
• USFDA nod for gAlbuterol and resolution of USFDA issues are critical from growth perspective and are key monitorables.
• We retain a Hold recommendation on the stock with a revised PT of Rs. 965.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Lupin-Aug07_2020.pdf
Aug 07, 2020 Divis Laboratories Stock Update BUY  2,784 3,400 
Summary
• Divis Laboratories (Divis) reported impressive performance for quarter. Consolidated sales stood at Rs 1730 crore up 48.8%
y-o-y, while Adj PAT stood at Rs. 487 crore up 75% y-o-y.
• Hunt by global players for an alternative API source is expected to benefit companies like Divis.
• Benefits of backward integration, healthy product pipeline and commissioning of expanded capacities, amidst strong demand
environment are the key positives.
• Strong earnings visibility, Sturdy balance sheet and healthy return ratios bode well. We retain Buy recommendation on the
stock with a revised PT of Rs. 3,400.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Divis-Aug07_2020.pdf


(Rs.)
Aug 07, 2020 Abbott India Viewpoint POSITIVE  16,188 18-20% 
Summary
• Abbott India Limited (Abbott) reported a strong performance for the quarter with revenues growing 6.5% yoy to Rs 1064 cr,
while the PAT was up 54% yoy to Rs 180 cr.
• Abbott’s power brands command a leadership position in their respective segments and are expected to sustain the growth
momentum backed by brand building and patient outreach efforts.
• Ample visibility on earnings growth amidst uncertain times, strong balance sheet position because of debt-free status and
moderating capex point at healthy cash flows.
• Collectively, this makes Abbott India one of the preferred investment ideas .We retain our Positive view on the stock and expect
an upside of 18-20%.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Abbott-Aug07_2020.pdf
Aug 07, 2020 Kajaria Ceramics Limited Viewpoint NEUTRAL  408 4-5% 
Summary
• We stay Neutral view on Kajaria Ceramics considering a fair valuation and await a better entry point.
• Consolidated revenues was in-line as quarter was affected by partially-shut dealer showrooms. Operating loss and net loss
were higher than expected on steep decline in closing inventory leading to lower gross margins.
• The company sees capacity utilisation and sales improving from July 2020 onwards along with healthy pick-up expected in
FY2022.
• Pricing power improved on the back of export opportunities led by anti-China sentiments in US and Europe. Net cash position
improved q-o-q by Rs. 74 crore led by lower inventory and debtors.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Kajaria-Aug07_2020.pdf
Aug 07, 2020 KEI Industries Viewpoint POSITIVE  377 18-20% 
Summary
• We stay Positive on KEI and expect 18-20% upside given attractive valuation post factoring COVID-19 impact and expecting
bounce back in FY2022.
• KEI posted decent results in Q1FY21 despite challenges. Strong beat on execution and OPM has led to better than expected
net earnings.
• Management expects FY2021 revenue to be at 85% of pre COVID levels while operating margins may get affected negatively
due to fixed costs. However, there should not be any constraint for FY2022 growth.
• Working capital expected to normalize by Q3FY21 as payments are getting normalized both from private as well as government.
Debt is expected to be Rs. 250 crore to Rs. 300 crore for FY2021 if it does not incur any capex.
Read report - https://www.sharekhan.com/MediaGalary/Equity/KEI-Aug07_2020.pdf

(Rs.)
Aug 07, 2020 Hindustan Petroleum Corporation Viewpoint POSITIVE  214 20-22% 
Summary
• HPCL’s Q1FY2021 operating profit of Rs. 4,131 crore (versus operating loss of Rs. 993 crore in Q4FY2020) was substantially
higher than our and street estimates due to better-than-expected profitability in the marketing business, offsetting weak GRM
of $0.04/bbl.
• The derived marketing EBITDA margin increased by 3.7x y-o-y to Rs. 5,989/tonne. However, core GRM was weak at negative
$0.9/bbl (versus positive $3.3/bbl in Q1FY2020). Inventory gains at Rs. 633 crore versus inventory loss of Rs. 4,113 crore in
Q4FY2020.
• Strong earnings outlook for the marketing business, expectation of nil inventory loss, and full utilisation for refineries would aid
earnings recovery for HPCL over FY2021E-FY2022E. Petrol/diesel demand at 89%/83% of pre-COVID-19 level in July 2020.
• HPCL’s valuation of 6.7x its FY2022E EPS is attractive (20% discount to its historical PE and 53% to that of BPCL on FY2022E
PE), and it offers a healthy dividend yield of 5-6%. Hence, we stay Positive on the stock and expect a 20-22% upside.
Read report - https://www.sharekhan.com/MediaGalary/Equity/HPCL-Aug07_2020.pdf
Aug 07, 2020 Amara Raja Batteries Limited Viewpoint POSITIVE  718 18-20% 
Summary
• Amara Raja Batteries (Amara) posted better than expected results. Revenues beat estimates due to recovery in automotive
replacement & telecom; better mix & cost control led to higher than expected OPM; Amara reported profit as against
expectations of loss.
• Auto replacement demand has recovered fast reaching 75% of normal in Q1 and is improving month on month. With opening
up of economy, UPS and OEM demand (both auto and industrial) are also picking up.
• Amara is expanding capacity in automotive business and we expect it to outperform industry driven by new client additions in
OEM space and market share gains in auto replacement segment.
• Amara is a debt free company with healthy return ratios. Valuations at 17.1x are lower than long term historical average. Hence,
we retain positive view on the stock and expect 18-20% upside from current levels.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Amara_Raja-Aug07_2020.pdf
Aug 10, 2020 Mahanagar Gas Limited Stock Update BUY  968 1,380 
Summary
• We retain a Buy on MGL with unchanged PT of Rs. 1,380 given attractive valuation of 11.3x FY22E EPS and potential earnings
recovery in FY2022E as volumes and margin would normalise with easing down of lockdown.
• Q1FY21 operating profit of Rs. 80 crore (down 71% y-o-y) substantially lagged estimates due to weaker-than-expected gas sales
volume of 1.1mmscmd (down 62.5% y-o-y) and margin of Rs. 7.9/scm (down 23% y-o-y).
• Earnings to recover sharply over FY22E-FY23E as gas sales volumes likely to normalise (recovered to 65% of pre-COVID-19
level vs. 38% in Q1FY21) and margins rise (low gas cost, better operating leverage and high CNG mix).
• Cheapest CGD stock with attractive valuation of 11.3x FY22E EPS (discount of 28% to its historical PE and 49% to IGL). Valuation
gap with peers to narrow on expected revival in volumes, superior margin and FCF yield of 7%.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/MGL-Aug10_2020.pdf


(Rs.)
Aug 10, 2020 Titan Company Limited Stock Update BUY  1,108 1,200 
Summary
• Titan Company Limited’s (Titan) jewellery business sales recovered to 80% in June on like-to-like basis. Increased demand from
the wedding segment, higher demand for Gold Harvest Scheme, and improved sales of gold, considering it as the safest bet of
investment, will enhance performance in the coming quarters.
• Other businesses such as watches and eyewear will take some time for recovery as out-of-home consumption is on backseat
in the near term. Overall, management expects full recovery by Q4FY2021 ( jewellery business might see full recovery from
Q3FY2021).
• Titan’s OPM was affected by unfavourable mix, ineffective hedges, and lower operating leverage. With recovery in performance
in the subsequent quarters, OPM will see sequential improvement.
• Gain in market share, people shifting to trusted brands, and relatively stable balance sheet make Titan a better play in the retail
space. We maintain our Buy recommendation on the stock with a revised PT of Rs. 1,200.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Titan-Aug10_2020.pdf
Aug 10, 2020 Wonderla Holidays Stock Update HOLD  143 162 
Summary
• Like other entertainment companies, Wonderla Holidays’ performance was disrupted by shut-down of amusement parks in
Q1FY2021.
• Some low-capex new initiatives such as Wonder Kitchen are gaining good response; clocking revenues of Rs. 14,000 - 15,000
per day (Rs. 5 lakh revenues since commencing of venture).
• Four and half months of NIL operations have been utilised on consumer engagement, re-framing pricing and cost strategies
(cost was reduced to Rs. 3.9 crore per month from Rs14 crore during pre-COVID level).
• Opening of international amusement parks hint at strong recovery led by pent-up demand; we expect revenues to return to
80% of last four-year average revenues in FY2022. We maintain our Hold recommendation on the stock with a price target of
Rs. 162.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Wonderla-Aug10_2020.pdf
Aug 10, 2020 Bank of Baroda Stock Update HOLD  49 56 
Summary
• Bank of Baroda (BOB) posted weak Q1FY2021 results with operational performance coming below expectations, but sequentially
asset quality saw improvement (NNPA declined) with decreased moratorium.
• Headline asset-quality performance was stable, with credit cost at 1.87% in Q1FY2021 (1.82% in Q4FY2020). While gross NPA
(GNPA%) ratio remained flat sequentially at 9.39%.
• We believe asset quality still continues to have uncertainties and, hence, will be a key monitorable.
• We maintain our Hold rating with an unchanged PT of Rs. 56.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/BoB-Aug10_2020.pdf

(Rs.)
Aug 10, 2020 Affle India Viewpoint POSITIVE  2,026 18-20% 
Summary
• We stay Positive on Affle India (Affle) and expect an 18-20% upside in the next 10-12 months.
• Affle India beat our estimates on all fronts, aided by revenue contributions from acquisitions; organic revenue declined 4.4%
y-o-y; EBITDA margin remained flat on y-o-y.
• Management witnessed strong recovery in CPCU business in June month; expect the favorable growth momentum to continue;
quarterly run-rate in CPCU business stands at Rs. 108 crore+, up 55% q-o-q growth.
• Given increased spend on mobile advertising and presence in high-growth verticals, Affle India is well positioned to deliver
strong revenue growth of 30% CAGR over FY2020-22E.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Affle-Aug10_2020.pdf
Aug 10, 2020 Sudarshan Chemical Industries Limited Viewpoint POSITIVE  436 28-30% 
Summary
• We retain our Positive view on Sudarshan Chemical Industries Limited (SCIL) with a potential upside of 28-30%.
• We introduce FY2023 numbers and believe that the company will be able to deliver revenue and earnings CAGR of 22.4% and
20.3%, respectively, over FY2020-FY2023E.
• Encouraging demand environment in exports, a pickup in domestic expected, long term capex plans remain intact, with the
company expected to incur capex Rs 350 crore during FY2021E. However a six-months delay in commissioning is expected.
• Multiple headwinds impacts Q1FY2021 performance, revenue, adj. EBITDA and adj. PAT lower by 14%, 18% and 41% respectively.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Sudarshan-Aug10_2020.pdf
Aug 11, 2020 Shree Cement Stock Update HOLD  21,500 23,453 
Summary
• We retain our Hold rating on Shree Cement Limited (Shree Cement) with a revised PT of Rs. 23,453, due to rich valuation and
factoring a downward revision in earnings estimates for FY2021-FY2022E.
• In Q1FY2021, operational profitability disappointed led by lower-than-expected realisation. Net earnings beat estimates was led
by higher other income and lower depreciation.
• Expanded capacity as on FY2021E and expected decline in volume would utilise ~50% of the capacity providing enough
headroom for volume growth.
• Shree Cement is yet to announce revival of new capacity expansion plans post recent fund-raising of Rs. 2,400 crore.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/ShreeCement-Aug11_2020.pdf


(Rs.)
Aug 11, 2020 Ipca Laboratories Limited Stock Update BUY  2,008 2,365 
Summary
• IPCA Laboratories Limited (IPCA) reported an impressive performance for Q1FY2021. Revenues at Rs 1534 cr grew 43.2% YoY,
OPM expanded remarkably by 1983 BPS YoY to 38.3%. PAT at Rs 445 cr was up 243% yoy.
• IPCA sees double digit growth trajectory to sustain for both API and Formulations segment. It has marginally revised its revenue
growth guidance upwards to 18-19% as compared to 14-17% earlier.
• Resolution of USFDA issues at the Pithampur and Pipariya plant is critical and upon successful resolution can lead to earnings
upgrades.
• Strong earnings prospects amidst uncertain times, a sturdy balance sheet and healthy return ratios augur well for IPCA. We
retain our Buy recommendation on the stock with revised PT of Rs 2365.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Ipca-Aug11_2020.pdf
Aug 11, 2020 KEC International Limited Stock Update BUY  292 370 
Summary
• We maintain our Buy rating on KEC International Limited (KEC) with a revised price target of Rs. 370, rolling forward our
valuation multiple to FY2023E.
• KEC posted decent results in Q1FY2021 despite challenges. Strong beat on execution and OPM have led to better-than-
expected net earnings.
• Order inflow and L1 position remained strong, driven by international T&D. Slackness in domestic T&D is expected to be
compensated by international T&D, while non-T&D outlook remains healthy.
• Re-biding of green energy corridor projects to help secure better margins owing to rise in key input materials such as steel.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/KEC-Aug11_2020.pdf
Aug 11, 2020 Bata India Limited Viewpoint POSITIVE  1,232 21-23% 
Summary
• Q1FY2021 performance was affected by lower demand and store closures due to lockdowns. Revenue decreased by ~85% and
the company also posted operating losses. School footwear (~15-16% of sales in Q1) and out-of-home footwear saw demand
plummet.
• Company is focusing on expanding its presence through e-commerce/omni-channel and innovating its product portfolio with
relevant products to drive growth in the medium to long term.
• ~90% of stores have reopened and operating at ~50% of pre-COVID levels. H1FY2021 to be subdued as demand in stores will
take time to revive. Post-pandemic, recovery likely in H2FY2021 amid festive/wedding season. Strong recovery is expected in
FY2022.
• Cash levels of ~Rs. 1,000 crore in FY2020 will help meet near-term obligations. Strong brand identity, sturdy balance sheet and
good parental backing help us stay Positive on stock and expect a 21-23% upside.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Bata-Aug11_2020.pdf

(Rs.)
Aug 11, 2020 Bosch Limited Viewpoint POSITIVE  13,261 18-20% 
Summary
• The Q1FY21 operating results of Bosch Limited (Bosch) missed our estimates due to lower than expected offtake by OEM
customers and negative operating leverage due to a steep fall in the topline. However, lower than expected depreciation and
tax credit led to Net Profit coming ahead of estimates.
• Bosch is witnessing decent recovery in the demand. While rural centric segments such as 2W and tractors are witnessing
strong recovery due to robust rural sentiments, the PV segment is also picking up driven by increased preference for personal
transportation.
• Also, Bosch is likely to witness an increase in content per vehicle on account of transition to BS-VI emission norms which came
into effect from April 1, 2020. Bosch has an orderbook of Rs 18,500 cr for supply of BSVI components over the next five to six
years which provides strong visibility.
• Bosch is a strong technological company operating in a high entry barrier industry with robust return ratios. The company is
expected to outperform the industry. Hence, we retain our Positive view on the stock and expect 18-20% upside from current
levels.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Bosch-Aug11_2020.pdf
Aug 11, 2020 Triveni Engineering and Industries Limited Viewpoint POSITIVE  78 20-22% 
Summary
• Triveni Engineering and Industries Limited (TEIL) registered strong performance in Q1FY2021 with revenue and PAT growing by
32% and 146%, respectively, largely led by strong sales performance by sugar and distillery businesses.
• The engineering and water business was affected by the lockdown in Q1FY2021. However, both businesses performed well in
FY2020 with strong growth in revenue and profitability. Order book remains strong for FY2021.
• board of directors gave the approval of buyback of 61.9 lakh shares (representing 2.5% of share capital) at price not exceeding
Rs. 105 per share aggregating to ~Rs. 65 crore. Strong cash flow generation aided in debt reduction of ~Rs. 200 crore y-o-y.
• We have fine-tuned our earnings estimates for FY2021/FY2022 to factor in better-than-expected performance in Q1. The
increase in MSP by Rs. 2 to Rs. 33/kg would result in better realisation and would support profitability. We maintain our Positive
view on the stock with 20-22% upside.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Triveni_Eng-Aug11_2020.pdf
Aug 11, 2020 Power Grid Corporation of India Limited Viewpoint POSITIVE  177 17-19% 
Summary
• We stay Positive on Power Grid and expect a 17-19% upside as strong work-in-hand of Rs. 51,000 crore offers earnings visibility
over FY21E-FY23E. Valuation attractive at 1.2x its FY22E P/BV (30% discount to historical P/BV) and dividend yield is healthy
at 6%.
• PAT at Rs. 1,979 crore (down 18.5% y-o-y) impacted by one-time rebate of Rs. 1,075 crore to discoms and higher tax rate.
Adjusting for rebate, PAT was up 18.4% y-o-y to Rs. 2,875 crore. Asset capitalisation lower at Rs. 1,184 crore versus Rs. 7,317
crore in Q4FY20.
• maintained its asset capitalisation and capex guidance of Rs. 20,000-25,000 crore and Rs. 10,500 crore, respectively, for
FY2021E.
• Withdrawal of AGR demand by government against PSUs removes long-pending overhang; outstanding dues of Rs. 8,243
crore as on June 2020 to get reduced led by power sector relief package.
Read report - https://www.sharekhan.com/MediaGalary/Equity/PowerGrid-Aug11_2020.pdf


(Rs.)
Aug 12, 2020 Ashoka Buildcon Limited Viewpoint POSITIVE  61 18-20% 
Summary
• We stay Positive on Ashoka Buildcon Limited (Ashoka) and expect an 18-20% upside, considering a healthy order backlog,
comfortable liquidity and improving industry outlook.
• Q1FY2021, Ashoka reported better-than-expected execution in EPC business and a higher OPM that helped net earnings beat
estimates.
• In July 2020, the company witnessed ~85% execution run-rate, 90-95% labour availability and ~90% toll collections of pre-
COVID times.
• New project wins and stake sale of ACL portfolio are key monitorables that would help re-rate stock.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Ashoka-Aug12_2020.pdf
Aug 13, 2020 Aurobindo Pharma Limited Stock Update HOLD  881 975 
Summary
• Q1FY2021 results were mixed. Revenues grew 8.8% y-o-y led by a 9% rise in formulations sales, while API sales were up by
6.5% y-o-y. PAT was up 20.6% y-o-y to Rs 770 cr.
• US business is gradually gaining traction driven by a sturdy new product launch pipeline.
• Successful resolution of USFDA observations would be a key parameter to watch and will be a trigger for an earnings upgrade.
• Sales and PAT are expected to grow by a 9% and 11% CAGR respectively over FY2020-FY2022. In the past three months the
stock price has run up 49%, thus leaving limited upside. We maintain our Hold rating on the stock with a revised PT of Rs. 975.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Aurobindo-Aug13_2020.pdf
Aug 13, 2020 Ratnamani Metals & Tubes Stock Update BUY  1,141 1,250 
Summary
• We maintain our Buy rating on Ratnamani Metals & Tubes Limited (RMTL) with a PT of Rs. 1,250.
• strong balance sheet and ability to generate superior return ratios despite capacity expansions make us confident on stock.
• FY2021E would be weak, we expect revenue growth to recover sharply in FY2022E led by pent-up demand, pick-up in order
inflows and higher government spending on infrastructure schemes.
• numbers were mixed numbers as revenues beat expectations at Rs. 578 crore, while OPM at 12.7% and PAT at Rs 50 crore
lagged expectations.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Ratnamani-Aug13_2020.pdf

(Rs.)
Aug 13, 2020 Ashok Leyland Stock Update BUY  61 72 
Summary
• We upgrade our recommendation on the stock of Ashok Leyland Ltd (ALL) to Buy from Hold with PT of Rs. 72.
• ALL posted lower-than-expected loss in Q1FY21. Better than expected Realisations due to price hikes and improved mix led
to revenue beat. Gross margins improved due to better mix but negative operating leverage due to steep 90% fall in volumes
dented profitability. However, net loss of Rs. 389 crore was lower than our estimates.
• the government opening up the economy under the unlock measures, demand scenario is improving and the company expects
pick-up month on month. ALL is ramping-up MHCV production in view of improved demand. We expect MHCV upcycle to
resume in FY22 as economic activity normalises and pent-up demand emerges, after two consecutive years (FY20 and FY21)
of a downcycle.
• Export markets are also opening up while LCV segment is witnessing faster recovery with production reaching full utilisation
levels.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Ashok-Aug13_2020.pdf
Aug 13, 2020 Grasim Industries Stock Update HOLD  632 681 
Summary
• We retain our Hold rating on Grasim with a revised PT of Rs. 681 on lowering of standalone earnings estimates and weak
outlook for standalone business in the medium term.
• Both of Grasim’s key verticals were stressed in Q1 as volumes and profitability slumped led by COVID-19 led disruptions in user
industries. Company reported operating and net loss at standalone level.
• Management to incur lower capex for FY2021 as it pauses chemicals segment in a weak environment; focus would be on
expanding viscose segment.
• Meanwhile, we believe investors can directly invest in UltraTech Cement (which forms ~70% of Grasim’s SOTP valuation).
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Grasim-Aug13_2020.pdf
Aug 13, 2020 Thermax Stock Update HOLD  751 815 
Summary
• We retain our Hold rating on Thermax with an unchanged PT of Rs. 815, factoring lower order booking and challenges pertaining
to uncertainties related to execution and productionWe retain our Hold rating on Thermax with an unchanged PT of Rs. 815,
factoring lower order booking and challenges pertaining to uncertainties related to execution and production.
• In Q1FY2021, Thermax’s revenue performance remained weak due to COVID-led shutdown impacting margins and net profit.
• order inflow, which was largely on expected lines, and lower execution during the same period helped in lower depletion of the
exit order backlog to 1x TTM consolidated revenue.
• Expect order booking in FY2021 to be lower compared to last year due to expectation of lower large ticket-size orders from
segments such as steel, fertiliser, and cement; enquiry pipeline remains positive in food processing, chemical and pharma.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Thermax-Aug13_2020.pdf


(Rs.)
Aug 13, 2020 Kalpataru Power Transmission Limited Stock Update BUY  247 325 
Summary
• We maintain our Buy rating on Kalpataru Power Transmission Limited (KPTL) with a revised PT of Rs. 325, considering its
attractive valuation and strong execution and order intake capabilities.
• Better than expected execution and higher OPM leads to beat on net earnings.
• maintained its guidance for 5-10% standalone revenue growth for FY2021 and OPM of 10.5-11%. The company has bagged
orders worth Rs. 2,470 crore YTD and is L1 in Rs. 1,000 crore orders. Order backlog remains strong providing 1.8x TTM
standalone revenues.
• The agreement for sale of the third project Kohima Mariani Transmission remains intact and is working to close all T&D assets
sales transactions in FY2021 which would help further deleveraging the balance sheet.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Kalpataru-Aug13_2020.pdf
Aug 13, 2020 Century Plyboards (India) Stock Update BUY  136 163 
Summary
• We retain our Buy rating on Century Plyboards (Century) with a revised PT of Rs. 163, as we see further room for an upside
considering earnings bounce-back from FY2022 onwards and a healthy balance sheet.
• Q1FY2021 numbers beat expectations considering COVID-19 led disruptions in the industry. Operating and net loss were lower
than our expectations.
• has seen revenues grow from July and expects to achieve a normal run-rate by Q4FY2021. Debtor collections are normalising
and debt is reducing.
• Century ply has paused its greenfield expansions in MDF and particle-board segments as of now.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/CenturyPly-Aug13_2020.pdf
Aug 13, 2020 Aarti Industries Limited Viewpoint POSITIVE  1,000 10-12% 
Summary
• We reiterate our Positive stance on Aarti Industries Limited (Aarti) with a potential upside of 10-12%.
• Management guides for single-digit growth in revenue and EBITDA, while PAT is likely to remain flat for FY2021E, however we
expect PAT CAGR of 15-20% over the next 3-4 years.
• The company expects significant part of the capex to be commissioned by the end of FY2021, which is likely to boost
performance in FY2022E and onwards.
• Lockdown impacts Q1FY2021 performance revenue lower by 9.7% yoy, EBITDA lower by 27.2% y-o-y, and adjusted PAT lower
by 36.5% yoy, shortfall fee of Rs. 38 crore from cancelation of first multi-year contract restricts the decline.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Aarti-Aug13_2020.pdf

(Rs.)
Aug 13, 2020 City Union Bank Viewpoint POSITIVE  117 12-15% 
Summary
• City Union Bank (CUBK) posted better-than-expected operational performance, with low slippages and sequential improvement
in asset quality (helped by the moratorium). The moratorium book declined to ~30% from 52% earlier.
• Net interest margin (NIMs) increased by 7 bps q-o-q to 3.98%, partly due to relatively stable yields; but going forward, moderation
in NIM is expected.
• decline in slippages caused asset quality to improve, with GNPA/NNPA at 3.90%/2.11% (down by 19 bps/18 bps q-o-q). CUBK
has a quality franchise and a conservative lending approach, which differentiates it from several similar-size peers and these
attributes still hold strong.
• We stay Positive on the stock and expect an upside of 12-15%.
Read report - https://www.sharekhan.com/MediaGalary/Equity/CityUnion-Aug13_2020.pdf
Aug 13, 2020 Aditya Birla Fashion and Retail Limited Viewpoint POSITIVE  130 25-27% 
Summary
• Aditya Birla Fashion (ABFRL) Q1FY2021 hit by store closures during lockdown. However, over 90% of stores are currently
operational. Sequential recovery is likely; management expects growth in Q4 with footfalls regain momentum.
• Rental negotiations, employee cost-savings and discretionary cost cuts led to Rs. 450 crore in savings. The resultant Benefits
of cost-savings will continue in coming quarters.
• Stable working capital management (with fall in inventory) and rights issue funds of Rs. 1,000 crore will help reduce debt by Rs.
1000-1,200 crore.
• Digitalisation, higher sales from private brands and relevant new launches to benefit ABFRL in near to medium term. We stay
Positive on stock and expect a 25-27% upside.
Read report - https://www.sharekhan.com/MediaGalary/Equity/AdityaBirla-Aug13_2020.pdf
Aug 13, 2020 JMC Projects (India) Limited Viewpoint POSITIVE  52 18-20% 
Summary
• We stay Positive on JMC Projects and expect a 18-20% upside,considering attractive valuation that factors loss-funding of its
build-operate-transfer (BOT) assets.
• Q1, JMC reported lower-than-expected performance as its B&F and infrastructure verticals were severely affected by COVID-19
led lockdown. However, it has been able to improve upon its gross margins aided by revenue mix.
• weak Q1, the management retained revenue growth guidance for FY2021. The company received strong order inflows during
YTD leading to healthy order backlog at 3.5x TTM standalone revenues.
• Management expects restructuring and refinancing of its BOT road assets to conclude in 2HFY2021 which would aid in
significant de-leveraging of balance sheet and stop cash drainage.
Read report - https://www.sharekhan.com/MediaGalary/Equity/JMC-Aug13_2020.pdf


(Rs.)
Aug 13, 2020 GAIL (India) Limited Viewpoint POSITIVE  98 25-27% 
Summary
• GAIL’s Q1FY2021 operating profit stood at Rs. 623 crore (down 72.4% y-o-y), lagged our estimates due to EBITDA loss of Rs. 517
crore and Rs. 53 crore in gas trading and petchem businesses respectively. Double-digit volume decline across the segment
(except for petchem).
• Gas transmission EBITDA at Rs. 953 crore (down 10.8% y-o-y) was higher than estimates due to better cost management; LPG-
LHC segment reported EBITDA of Rs. 286 crore (down 45.8% y-o-y; down 48.4% q-o-q) due to lower realisation.
• The recent recovery in gas transmission (109 mmscmd) and trading volume (87 mmscmd), full utilisation for petchem plants and
stable LNG prices (increased by $1-1.5/mmbtu recently) would aid earnings recovery in 9MFY2021E.
• GAIL is trading at attractive valuation of 5.6x its FY2022E EV/EBITDA (38% discount to historical average EV/EBITDA multiple)
and offers healthy dividend yield of 5%. Hence, we maintain our Positive view and expect 25-27% upside.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Gail-Aug13_2020.pdf
Aug 14, 2020 Hero MotoCorp Stock Update BUY  2,805 3,300 
Summary
• Hero MotoCorp (Hero) posted better-than-expected Q1FY2021 results. Realisations growth of 21% was ahead of estimates
driven by price increases and better mix. OPM of 3.6% and Net profit at Rs. 61 crore were ahead of our estimates.
• Hero is witnessing consistent improvement in demand on m-o-m basis since the lockdown restrictions were relaxed. Hero has
already reached 95% of Pre-COVID sales in July 2020 and the trend has sustained in early August as well. As per Hero, the
trend is fundamental in nature and not just pent-up demand.
• is expecting good demand for the festive season; and with the inventory lower than normalised levels, wholesale sales are
expected to improve further.
• We have fine-tuned our earnings estimates for both FY2021 and FY2022. At the CMP, the stock is trading at 15.2x its FY2022
earnings, which is lower than its long-term historical average. Hence, we retain our Buy rating on the stock with a revised PT
of Rs. 3,300.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/HeroMoto-Aug14_2020.pdf
Aug 14, 2020 The Ramco Cements Limited Stock Update BUY  678 803 
Summary
• We maintain our Buy rating on The Ramco Cements (Ramco) with a revised PT of Rs. 803,factoring in upward revision in
estimates for FY2021-FY2022..
• In Q1FY2021, Ramco cement fared better than expectations on all front. The steep rise in cement prices coupled with lower
power & fuel cost helped post better than expected net earnings.
• Ramco’s capacity expansion plan of Rs. 3,500 crore is in progress although with slight delay led by COVID. Standalone D/E ratio
is expected to reduce from 0.6x in FY2020 to 0.4x in FY2022E despite capacity expansions.
• We expect Ramco to benefit from the expected improvement in cement demand from Q3FY2021 onwards and a favourable
cement pricing scenario in the key South Indian market.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Ramco-Aug14_2020.pdf

(Rs.)
Aug 14, 2020 Trent Ltd. Viewpoint POSITIVE  566 20-22% 
Summary
• Q1FY2021 performance was affected by store closures amid the COVID-19 lockdown. However, 90% stores are currently
operational and footfalls would return once the situation normalises.
• Company prioritised cost cuts by slashing employee costs, cutting discretionary spends and renegotiating rental expenses.
This is likely to sustain and support profitability to some extent in the near term.
• 100% of Westside merchandise being manufactured in-house, we expect that Trent would bounce back faster. Product
innovation, aggressive store expansions and leveraging digital presence will be near-term growth drivers.
• Trent is among India’s strong branded retail plays with a robust balance sheet, stable cash flows, and one of the highest
utilisation rates per store. Stock has corrected by more than 30% in the last six months, factoring near-term uncertainties. We
stay Positive and expect a 20-22% upside.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Trent-Aug14_2020.pdf
Aug 14, 2020 Bharat Petroleum Corporation Viewpoint POSITIVE  413 18-20% 
Summary
• BPCL’s Q1FY2021 operating profit at Rs. 3,916 crore (up 94.3% y-o-y) was in-line with our estimate as sharp beat in marketing
margin and sales volume was largely offset by miss in reported GRM at $0.4/bbl (down 86% y-o-y)..
• The derived blended marketing EBITDA margin was up 3.5x y-o-y to Rs. 5,225/tonne; reported GRM was impacted by surprise
refinery inventory loss of Rs. 438 crore (versus expectation of inventory gain).
• Q2FY2021 earnings are likely to benefit from refinery inventory gain as crude is valued at $38/bbl as of June 2020 versus spot
oil price of $45/bbl. BPCL’s earnings are poised for sharp recovery over FY2021E-FY2022E, led by higher marketing margins,
volume revival (recovered to 90% of pre-COVID-19 level in August), and inventory gains.
• Government’s keen interest to privatise BPCL (although delayed due to COVID-19) in FY2021E could act as a key re-rating
catalyst for BPCL. Hence, we maintain our Positive view on BPCL and expect 18-20% upside.
Read report - https://www.sharekhan.com/MediaGalary/Equity/BPCL-Aug14_2020.pdf
Aug 14, 2020 Mayur Uniquoters Viewpoint POSITIVE  251 23-25% 
Summary
• Mayur Uniquoters (MUL) Q1FY21 results were below estimates mainly driven by lower than anticipated topline. Lockdown on
account of COVID-19 for a large part of the quarter led to a steep 69% y-o-y fall in revenues. MUL reported loss at the operating
level as against our expectations of profit.
• is witnessing demand improvement and expects to reach 60% of Pre-COVID levels in Q2FY21 and Pre-COVID demand levels
by Q4FY21. New client wins in the automotive segment and the ramp up of the poly urethane (PU plant) would enable MUL to
outperform the industry.
• crude prices and better mix would lead to margin improvement.
• At CMP, the stock is trading at 12x FY22 earnings which is lower than its long-term historical average. Further, Rs 200 cr of cash
on the books (about 20% of the market cap) provides additional comfort. Hence, we retain our positive view on the stock and
expect 23-25% upside from current levels.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Mayur-Aug14_2020.pdf


(Rs.)
Aug 14, 2020 Balkrishna Industries Viewpoint POSITIVE  1,314 13-15% 
Summary
• Balkrishna Industries’ (BKT’s) Q1FY21 results beat estimates on all parameters. Revenue decline of 23% y-o-y due to COVID-19
was lower than our expectations of a 45% drop. BKT managed to improve margins y-o-y (margins exceeded estimates) despite
a double-digit drop in topline. Net profit was ahead of our estimates..
• BKT has maintained its guidance of similar volumes this fiscal as witnessed in FY20, which is commendable given the challenging
scenario amid COVID-19.BKT is among a few automotive companies to retain volumes.
• Going ahead, BKT would continue to outpace OTH industry and aims to double its global market share over the next few years
driven by new launches and increased distribution presence. Further, captive sourcing of carbon black, favourable currency
movement and soft commodity prices would boost margins.
• We rollover our target multiple on the average of FY22 and FY23 earnings. We stay positive on the stock and expect a 13-15%
upside from current levels.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Balkrishna-Aug14_2020.pdf
Aug 17, 2020 Greaves Cotton Stock Update HOLD  84 95 
Summary
• Greaves Cotton (Greaves) posted higher than expected loss in Q1FY21 impacted by lower offtake from OEM due to COVID-19
and inability to fully pass on cost increases.
• We expect 3W demand to remain weak in near term as people are reluctant to use them so as to ensure social distancing in
COVID-19 times. While non-automotive segment volumes are picking up, it is not sufficient to offset decline in the automotive
space.
• Negative operating leverage and inability to fully pass on cost increases due to weak demand would lead to a decline in
margins.
• At CMP, the stock is trading at 15x FY22 earnings which is close to its long-term historical average of 16-17x. We retain Hold
rating on the stock with revised PT of Rs 95.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Greaves-Aug17_2020.pdf
Aug 17, 2020 Insecticides (India) Limited Viewpoint POSITIVE  472 15-17% 
Summary
• We remain Positive on Insecticides (India) Limited (IIL) and expect an upside of 15-17%..
• Launch of new products to drive performance, launched two products in Q1FY2021, four new launches expected in Q2FY2021,
and aims a total of 10 new products each year.
• The company turned debt free in Q1 and aims to remain so for the next few years, to fund capex and working capital requirement
through internal accruals..
• Revenue grew by 14.3%, led by higher sales of branded products, while margins were impacted by raw-material availability and
logistics issues, lower by 560 bps y-o-y to 12%.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Insecticides-Aug17_2020.pdf

(Rs.)
Aug 17, 2020 NTPC Limited Viewpoint POSITIVE  95 28-30% 
Summary
• NTPC Limited’s (NTPC) Q1FY21 PAT at Rs. 2,470 crore (down 5.1% y-o-y) was above ours and street’s estimate due to lower
rebate to discoms, nil fixed cost under-recoveries, and strong regulated equity base of Rs. 62,864 crore (up 16.3% y-o-y).
• Management has guided for strong commercialisation of 5-6 GW annually and 15% CAGR in regulated equity over the next
three years. Higher regulated equity and nil fixed cost under-recoveries to drive 12% PAT CAGR over FY2020-FY2022E.
• Declining CWIP ratio (expected at 29%/24%/19% in FY2021E/FY2022E/FY2023E versus 32% in FY2020) would free-up equity,
which would start earnings regulated returns for NTPC.
• Retain Positive view on NTPC with 28-30% upside as valuation of 0.7x its FY2022E P/BV is attractive given earnings growth
visibility. Healthy dividend yield of 6-7% and management’s plan to reward shareholders with buyback lends comfort.
Read report - https://www.sharekhan.com/MediaGalary/Equity/NTPC-Aug17_2020.pdf
Aug 18, 2020 Petronet LNG Stock Update BUY  258 300 
Summary
• Petronet LNG (PLNG) reported better-than-expected Q1FY21 results as the decline of 11% y-o-y in its operating profit to Rs910
crore was much lower than our and street expectations of 20-22% y-o-y decline. It is attributable to higher-than-expected Dahej
re-gas volume at 181 tbtu and lower other expenses.
• Sharp volume recovery at Dahej terminal (utilisation of 104% currently) and ramp-up of volume at Kochi terminal provide
earnings growth visibility even in uncertain times. Robust gas demand from power sector given low LNG price to help sustain
high utilization rate for Dahej terminal.
• PLNG’s valuation at 11.3x its FY2022E EPS seems attractive given earnings growth visibility (expect a 10% PAT CAGR over
FY2020-FY2022E), strong RoE of 29%, and FCF/dividend yield of 8%/6% in FY2022E.
• Hence, we maintain our Buy rating on PLNG with an unchanged PT of Rs. 300.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/PetronetLNG-Aug18_2020.pdf
Aug 18, 2020 Polyplex Corporation Limited Viewpoint POSITIVE  758 20% 
Summary
• Polyplex Corporation Limited’s (PCL) Q1FY2021 consolidated operating profit grew strongly by 40% y-o-y to Rs. 312 crore,
above our estimate, led by higher-than-expected gross margin at 53.5% (up 1,043 bps y-o-y) and better-than-expected volume
& realisation.
• Strong packaging demand from consumer staples, food, and health and hygiene segments provide volume growth visibility. We
have modeled a 7% volume CAGR over FY2020-FY2022E, supported by the recent 16% capacity expansion to 312,645 tonne.
• Margin outlook also remains robust, given favourable demand-supply scenario for BOPET films and weak MEG/PTA price.
Decent volume growth and strong margins of ~21% to drive 22% PAT CAGR over FY2020-FY2022E.
• We stay Positive on PCL and expect 20% upside, as robust earnings growth outlook, strong balance sheet, and dividend yield
of 5-6% make valuation attractive at 5.8x its FY2022E EPS, despite the recent sharp run-up in the stock price.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Polyplex-Aug18_2020.pdf


(Rs.)
Aug 18, 2020 Lumax Auto Technologies Viewpoint POSITIVE  100 18-20% 
Summary
• We upgrade our view on Lumax Auto Technologies Ltd (LATL) to “Positive” from “Neutral” and expect 18-20% upside from
current levels.
• Automotive OEM (70% of revenues) and aftermarket (18% of revenues) are witnessing continued improvement in volumes
driven by strong rural sentiments, increased preference for personal transport; LATL to reach Pre-COVID revenue levels by
Sep 20.
• With increasing share of business from existing clients and new product launches under BS-VI norms, LATL is poised to
outperform the industry.
• With an improvement in revenue and profitability, return ratios are expected to improve significantly. LATL is a debt-free
company at the net level. At CMP, the stock is trading at 12.5x and 9.7x its FY22 and FY23 earnings compared to the long-term
historical average of 12x.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Lumax-Aug18_2020.pdf
Aug 18, 2020 Tata Consumer Products Ltd Stock Update BUY  545 630 
Summary
• Higher demand for branded products in domestic market, expansion of distribution and good growth in international markets
would drive growth in the near term.
• Margins to steadily expand driven by synergistic benefits accrued through merger of Tata Chemicals’ consumer business.
• New leadership focuses on driving profitable growth and improving return profile.
• TCPL’s revenues and PAT to clock CAGRs of 11% and 23%, respectively, over FY2011-23; maintain Buy with revised PT of Rs. 630.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Q1FY2021_Consumer_Goods_Results_Review-Aug18_2020.pdf
Aug 18, 2020 Emami Ltd Stock Update BUY  340 440 
Summary
• Strong traction for health & hygiene products (~43% of domestic revenues) and sustained focus on new launches would help
company post low single digit growth in FY2021.
• Benign input prices (of menthol) and lower ad spends would help margins expand in the coming quarters.
• Reduction in promoters’ pledging to 55% from 95% significantly reduces concerns over this issue (promoters’ pledging to be
negligible by end of FY2021.
• Despite recent run-up, stock is trading at discounted valuations of ~21x compared with close peers. We maintain Buy with
revised PT of Rs. 440.

(Rs.)
Aug 19, 2020 KNR Constructions Limited Viewpoint POSITIVE  257 18-20% 
Summary
• We stay Positive KNR Construction and expect an upside of16-18%, factoring in the upwardly revised estimates coupled with an
improving outlook on execution and order intake going ahead.
• KNR reported stellar performance during Q1 led by higher than expected revenues and OPM improvement. Higher revenues
driven by revenue booking of completed projects along with higher revenue booking in irrigation projects.
• Expect FY2021 to be same as FY2020 revenue. Booking of revenues from recently bagged irrigation projects can add
incremental growth. Target additional Rs. 2000 crore order inflows for balance fiscal.
• Funds from the Cube deal and receivables from the Telengana state government to aid in meeting equity requirement along
with paying off promoter loans.
Read report - https://www.sharekhan.com/MediaGalary/Equity/KNRConst-Aug19_2020.pdf
Aug 19, 2020 HCL Technologies Stock Update BUY  710 820 
Summary
• We maintain our Buy rating on HCL Technologies (HCL Tech) with a revised PT of Rs. 820
• Company remains confident of delivering improvement in its EBIT margin in FY2021E, citing improved business visibility;
management guided EBIT margin of 19.5-20.5% for FY2021E, an improvement of 100 bps
• We believe HCL Tech’s strength in infrastructure business and improvement in other digital offerings makes it well-placed to
participate in upcoming transformational opportunities.
• With no pending IBM-IP acquisition related payments and limited capex obligations, we expect free cash flow generation would
improve going forward, boosting the payout ratio.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Q1FY2021_IT_Results_Review-Aug19_2020.pdf
Aug 19, 2020 Infosys Stock Update BUY  959 1,120 
Summary
• We maintain our Buy rating on Infosys with a revised price target of Rs. 1,120
• Infosys impressed with strong TCVs, largest ever deal wins (Vanguard), resilience in major geographies, healthy deal pipeline,
cost optimization initiatives and healthy FCF generation in a tough environment.
• We believe Infosys would comfortably achieve its FY2021E revenue growth guidance of 0-2% given its recent mega-deal wins,
healthy order book and a robust deal pipeline.
• With proven strength in service delivery and strong client relationships, we forecast US Dollar revenue and earnings to clock a
CAGR of 9.7% and 12.4%, respectively, over FY2021-23E.


(Rs.)
Aug 19, 2020 Wipro Stock Update HOLD  280 300 
Summary
• We maintain our Hold rating on Wipro with a PT of Rs. 300, given its continued underperformance in revenue growth among
its large peers.
• Stability in healthcare and technology business coupled with large deals win and strong demand for digital transformation
activities would support an improvement in revenues from Q2FY2021 onwards
• Though a new CEO would focus on a potential turnaround strategy, we believe it would be a tough task given existing execution
issues, absence of large-deal engines and a challenging demand environment
• The announcement of a buyback post September could be an additional booster for multiple re-rating; the recent run-up in
stock price limits the upside potential.
Aug 19, 2020 Birlasoft Viewpoint POSITIVE  172 20% 
Summary
• We retain our Positive view on Birlasoft as risk-reward remains favorable and expect a potential upside of 20% in 10-12 months.
• Stock trades at 11x of FY2023E earnings, implies reasonable valuation; cash & cash equivalents account for 17% of market
capitalisation
• Management remains confident on achieving 15% EBITDA margin in Q4FY2021 (12.3% in Q1FY2021) on the back of cost
optimisation and higher offshoring
• Expect revenue to grow at 9.3% CAGR over FY2021-23E, while earnings are likely to clock a 25% CAGR led by improvement
in profitability and lower tax provision.
Aug 20, 2020 Finolex Cables Ltd. Stock Update BUY  295 360 
Summary
• We upgrade Finolex Cables to Buy with revised PT of Rs. 360 considering its discounted valuation vis-à-vis peers and improving
growth outlook.
• Q1 numbers were better-than- expected, though the company effectively operated for only about a month during the quarter.
OPM and net profit beat estimates despite steep decline in revenues.
• Strong build-up of cash may lead to exploring inorganic growth opportunities. Pandemic offers opportunity to increase market
share organically.
• Capex of Rs. 200 crore to continue over 18 months.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Finolex-Aug20_2020.pdf

(Rs.)
Aug 21, 2020 Persistent Systems Limited Stock Update BUY  1,040 1,220 
Summary
• We retain our Buy rating on Persistent Systems Limited (PSL) with a revised PT of Rs. 1,220.
• Among mid-tier companies, PSL clocked strongest revenue growth given its exposure to less-impacted verticals such as BFSI,
technology and healthcare.
• Growth momentum in technology services would continue beyond FY21E led by increasing spends on digital program, strong
deal wins and a healthy deal pipeline.
• Cash &cash equivalents account for 19% of its current market capitalisation; strong balance sheet and potential strong earnings
growth (15% CAGR over FY2020-22E) provide us comfort on the stock.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Persistent-Aug21_2020.pdf
Aug 21, 2020 MOIL Limited Viewpoint POSITIVE  151 15% 
Summary
• MOIL Limited (MOIL) reported better-than-expected Q1FY2021 results, as operating profit came in at Rs. 48 crore vs. expectation
of operating loss of Rs. 44 crore. Performance was led by lower opex (down 38.5% y-o-y), higher realisation (up 30% q-o-q), and
likely liquidation of inventory at higher prices.
• The recent recovery in utilisation of domestic steel plants to 85-90% bodes well for recovery in manganese volume in H2FY2021.
We expect a 22% PAT CAGR over FY2020-FY2022E, led by volume recovery and better realisation.
• Valuation is attractive at 2.7x its FY2022E EV/EBITDA, 38% discount to historical EV/EBITDA multiple. MOIL offers dividend yield
of 4% and has a strong balance sheet with cash and cash equivalent of Rs. 1,828 crore (51% of market capitalisation).
• Hence, we maintain our Positive view on MOIL and expect 15% upside from current levels.
Read report - https://www.sharekhan.com/MediaGalary/Equity/MOIL-Aug21_2020.pdf
Aug 24, 2020 Punjab National Bank Stock Update HOLD  35 40 
Summary
• Punjab National Bank (PNB) posted largely in line with expectations operational results, but asset-quality performance was
mixed. Though CET-1 at 9.4% is comfortable, but possible equity raise may result in book value dilution.
• PNB’s elevated moratorium book at 29.2% (in value terms; borrowers who missed two or more EMIs) and was sequentially flat,
which was a dampener.
• NIMs were stable, but asset-quality performance was mixed, with GNPAs and NNPAs rising q-o-q. PCR improved sequentially
to 80.75%, but NPA outlook continues to be weak, with pending provisions still an overhang.
• We maintain our Hold rating with a revised price target (PT) of Rs. 40.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/PNB-Aug24_2020.pdf


(Rs.)
Aug 24, 2020 Oil India Limited Stock Update HOLD  97 106 
Summary
• We downgrade Oil India to Hold (from Buy) with revised SoTP-based PT of Rs. 106 given a weak earnings outlook (expect 44%
PAT decline over FY20-FY22E) on low oil & gas realisation and muted RoEs of 4-7% over FY2021E-FY2022E.
• Weak Q1FY21 results with net loss of Rs249 crore (versus a net profit of Rs. 625 crore in Q1FY20) due to weak oil and gas
realisation, declined by 54.1% y-o-y and 29% y-o-y respectively, high operating expenses, Rs. 93 crore cost for the Baghjan
blowout and lower other income.
• Oil sales volume and realisation declined by sharply by 8.1% and 54.1% y-o-y to 0.73mmt and $30.4/bbl respectively.
• Weak oil and gas realisation/production outlook, high capex plan of Rs.4,000-4,200 crore despite low oil & gas prices and
negative value from investment in Mozambique E&P assets would act as an overhang on stock.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Oil_India-Aug24_2020.pdf
Aug 24, 2020 ICICI Lombard General Insurance Viewpoint POSITIVE  1,275 15-18% 
Summary
• ICICI Lombard General Insurance (ILGI) to merge general insurance business of Bharti AXA General Insurance (BAGI), post
which ILGI combined entity (ILGI-CE) would have overall GDPI market share of ~8.7%.
• The valuation to BAGI is higher than expectations; also, near term may witness dilution in operational parameters of the
combined entity.
• Synergy benefits likely to accrue over the long term, successful execution will be key for synergy benefits. We find General
insurance is an attractive space for long runway for growth.
• We maintain our Positive view on ICICI Lombard and see 15-18% upside potential.
Read report - https://www.sharekhan.com/MediaGalary/Equity/ICICI_Lombard-Aug24_2020.pdf
Aug 25, 2020 Max Financial Services Stock Update BUY  621 720 
Summary
• Max Financial Services’ (MFS’) deal with Axis Bank Ltd is progressing well; Axis Bank to now buy a lower stake of 17% in Max
Life Insurance Co. Ltd. (MLIC) taking eventual shareholding to 18%.
• Changes are likely due to regulatory requirements and we believe that deal is closer to fruition, which will remove the overhang
on MFS (Axis partnership crucial for MLI; Axis has 57% share of APE for MLI).
• Max Life generates healthy ROEV (15.9% in Q1 FY21) and has sufficient capital (solvency ratio of 212%) and its robust fundamentals
make it a strong candidate for potential re-rating as outlook improves.
• We maintain a Buy rating with a revised price target of Rs 720.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Max_Financial-Aug25_2020.pdf

(Rs.)
Aug 25, 2020 LIC Housing Finance Ltd. Stock Update BUY  299 345 
Summary
• LIC Housing Finance Limited (LICHFL) reported steady results with operating performance coming largely in line with
expectations (lower provisions resulted in better-than-expected profit), but asset-quality performance was not bright.
• Moratorium book held fast at 25% of total book (was 25% in Q4FY2021); with individual home loans comprising ~16% and rest
being developer and LRD/LAP segment.
• has strengths in borrowing profile and has been able to bring down its cost of funds, helped by its strong parent profile; and we
believe conservative LTVs and inexpensive valuations make risk-return favourable.
• We introduce FY2023E estimates and accordingly roll forward the target multiples. We upgrade the rating to Buy with a revised
price target of Rs. 345.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/LICHF-Aug25_2020.pdf
Aug 25, 2020 JSW Steel Limited Viewpoint POSITIVE  285 15% 
Summary
• We stay Positive on JSW Steel and expect a 15% upside as sharp hike in domestic steel prices and volume recovery improves
earnings outlook (expect a 21% PAT CAGR over FY2020-FY2022E along with a decent RoE of 13-14%).
• Domestic steel manufacturers have hiked steel prices by Rs. 3,000-3,500/tonne since end-July 2020. Price hikes to sustain
given balanced demand-supply (higher exports in H1FY21E and likely domestic demand recovery in H2FY21E). .
• Domestic steel production recovered to 75-80% of pre-COVID-19 level and thus management’s FY2021E guidance of 16mt/15mt
for steel production/sales seems achievable.
• Strong capabilities to execute capacity expansions (undertaking 5 mtpa capacity expansion at Dolvi plant) would ensure volume
growth for JSW Steel over FY2022E-FY2023E.
Read report - https://www.sharekhan.com/MediaGalary/Equity/JSW_Steel-Aug25_2020.pdf
Aug 26, 2020 SRF Limited Viewpoint POSITIVE  4,257 18-20% 
Summary
• We stay Positive on SRF and expect an upside of 18-20%.
• We introduce FY2023 estimates and believe that calibrated expansion in the right space (chemicals and packaging films) will
help the company to deliver healthy revenue and earnings CAGR of 16.0% and 22.6% respectively over FY2020-23E.
• The company balance sheet to strengthen further (debt/equity to improve to 0.29x in FY23E from 0.60x in FY20) despite
expansion plans as strong operating cashflow generation to support and fuel capex.
• Growth expected to be largely driven by speciality chemical and packaging film business, as demand improvement in
flourochemical and technical textiles business is expected to be gradual from H2FY2021E.
Read report - https://www.sharekhan.com/MediaGalary/Equity/SRF-Aug26_2020.pdf


(Rs.)
Aug 26, 2020 Sundram Fasteners Viewpoint POSITIVE  468 18-20% 
Summary
• We upgrade our view on Sundram Fasteners Ltd (SFL) to Positive from Neutral earlier and expect 18-20% upside from current
levels.
• Demand is recovering in both domestic as well as export markets; SFL expects to reach close to Pre-COVID levels in Q2FY21;
FY22 to witness strong double-digit growth on expected normalisation of business activity.
• SFL would continue to introduce new value value added product which coupled with increased share of business with clients
would drive topline.
• Return rations would improve significantly to 18-19% in FY23 which would drive re-rating. At CMP, stock is trading at 27.5x and
20.3x its FY22 and FY23 earnings as compared to long term historical average of 23-24x.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Sundaram_Fast-Aug26_2020.pdf
Aug 27, 2020 Indraprastha Gas Limited Viewpoint POSITIVE  407 25-27% 
Summary
• Q1FY21 results lagged expectations as volumes fell sharply by 56.6% y-o-y to 2.7 mmscmd and EBITDA margin slumped by
46.4% y-o-y to Rs. 3.4/scm. Resultantly, PAT fell by 85.4% y-o-y at to Rs. 32 crore, lagging our estimates by 62%
• CNG sales volume fell 65.6% y-o-y to 1.6mmscmd while domestic PNG volumes surged by 39% y-o-y to 0.5 mmscmd. Gross
margin rose 19.5% y-o-y to Rs13.7/scm led by low gas costs and CNG price hike of Rs. 1/kg.
• Easing of lockdown and resumption of travel would help CNG volumes normalise (recovery seen in July and August) in H2FY21E.
Earnings to reach pre-COVID-19 levels in FY22E on expectations of 25% y-o-y volume growth and margin recovery.
• Sharp 24% correction in stock price (from 52-week high of Rs. 534) offers entry opportunity for long-term investors as valuations
are discounting NIL volume growth for perpetuity. Hence, we stay Positive on IGL and expect a 25-27% upside.
Read report - https://www.sharekhan.com/MediaGalary/Equity/IGL-Aug27_2020.pdf
Aug 28, 2020 Larsen & Toubro Stock Update BUY  982 1,250 
Summary
• We maintain our Buy rating on Larsen and Toubro (L&T) with an unchanged PT of Rs. 1,250, considering attractive valuation and
healthy fundamentals to ride the current uncertainties.
• L&T expected to be key beneficiary of the defence opportunities announced in the Atma Nirbhar scheme push, as capabilities
already to reap benefits.
• With more than 95% sites operational and improvement in labour workforce, it is expected to witness gradual recovery in
execution by the latter part of FY2021.
• Order book remains strong and diversified providing healthy revenue visibility. It remains key beneficiary on order inflow arising
from infrastructure opportunities as government focus remains on Infra.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/LnT-Aug28_2020.pdf

(Rs.)
Aug 28, 2020 Bharat Electronics Limited Stock Update BUY  112 135 
Summary
• We retain our Buy rating on Bharat Electronics Limited (BEL) with a revised price target to Rs. 135 on account of improving
growth visibility.
• Series of reforms such as import ban of defence items, 74% FDI through the automatic route, and strategic partnership model
would open up future avenues for BEL’s growth.
• BEL would deliver a strong performance in the coming years, given its strong order book (4.2x its FY2020 revenue), major
beneficiary from increasing emphasis on indigenisation, and limited competition.
• We believe BEL’s continued focus on enhancing the R&D capability would enhance the company’s capabilities to participate in
the upcoming business opportunities.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/BEL-Aug28_2020.pdf
Aug 28, 2020 City Union Bank Viewpoint POSITIVE  150 18-20% 
Summary
• City Union Bank (CUBK) faced some challenges due to COVID-19 but has responded with tight cost control and steps to
strengthen its liability franchise and is focusing on conserving asset quality.
• We prefer a constructive medium-to-long-term view backed by our expectation of credit quality cycle normalising in the next
few years and CUBK is likely be a key beneficiary of this.
• CUBK has a quality franchise and a conservative lending approach, which differentiates it from several similar-size peers. CUBK
currently trades at ~1.5x its FY2023E book value, which we believe is reasonable. We introduce FY23E estimates and rollover
the price target accordingly.
• We maintain our Positive view and expect a upside of 18-20%.
Read report - https://www.sharekhan.com/MediaGalary/Equity/CityUnionBank-Aug28_2020.pdf
Aug 28, 2020 PNC Infratech Limited Viewpoint POSITIVE  169 18-20% 
Summary
• We retain our Positive view on PNC Infratech Limited (PNC) with 18-20% upside potential, as we see further room for upside,
considering its strong order book, and healthy balance sheet.
• In Q1FY2021, PNC reported better-than-expected performance on all fronts. Standalone net sales declined by 31.5% y-o-y, OPM
was marginally lower by 35 bps y-o-y, while net profit stood at Rs. 60 crore.
• PNC expects FY2021 revenue to dip by 10% y-o-y due to COVID-19, monsoon, and delay in receipt of appointed dates for HAM
projects. Order inflow guidance retained.
• PNC’s order book stands at a healthy Rs. 15,525 crore along with balance sheet quality remaining strong.
Read report - https://www.sharekhan.com/MediaGalary/Equity/PNC_Infra-Aug28_2020.pdf


(Rs.)
Aug 31, 2020 Reliance Industries Stock Update BUY  2,079 2,400 
Summary
• Reliance Retail, a subsidiary of RIL, announced that it would acquire the entire retail value chain (retail, wholesale, logistics and
warehousing operations) of Future Group (FG) for EV of Rs24,713 crore.
• Deal valuation of 13.4x EV/EBITDA and 0.9x EV/sales on FY2020 is at discount to valuation for industry peers. Potential
turnaround of the acquired retail business of Future Group could fetch higher valuation and create meaningful value for RIL.
• Deal is a strategic fit to RIL’s offline-online retailing strategy and complements its New Commerce initiative. Acquisition would
increase Reliance Retail’s total retail area by ~83% to ~52.5 mn sq. ft., core retail revenues by 30% and overall retail EBITDA
by 19%.
• We maintain our Buy rating on RIL with unchanged SoTP based PT of Rs. 2,400.
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/RIL-Aug31_2020.pdf
Aug 31, 2020 Arvind Limited Stock Update BUY  33 43 
Summary
• Arvind Limited’s Q1FY2021 performance was affected due to the lockdown in the domestic and international market, resulting
in revenue declining by 68% during the quarter.
• The denim and garment segments recovered to 75-80% of pre-COVID level, while the woven business recovered to just 60%.
The advance material segment is back to pre-Covid level.
• Cost-saving measures to help post better margins in FY2022 coupled with higher margins from advance material business.
Cash accruals stood positive at Rs. 25 crore-30 crore over June-August.
• We maintain our Buy rating with an unchanged PT of Rs. 43 due to discounted valuation of 6.6x its FY2022E earnings and 3.9x
its FY2022E EV/EBITDA (trading at a discount of ~30% since its listing last year).
Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Arvind-Aug31_2020.pdf

EQUITY FUNDAMENTALS SECTOR UPDATE
Sector View
Date Sector Report Type
Latest Chg
Aug 03, 2020 Automobiles Sector Update Neutral 
Summary
• Automotive volumes continued to recover with sales improving from previous month (June 2020 levels). Performance of the
automotive universe (excluding two-wheelers) was better than estimates.
• PV segment surprised positively reaching almost 95% of pre-COVID sales (expectations of 75% of normal sales); while tractors
stayed upbeat on a normal monsoon and higher kharif sowing growing by 24% yoy (higher than estimates of 13% growth).
• Two-wheeler sales reached 75% of pre-COVID levels on strong demand in rural and semi-urban areas (broadly in line with
estimates of 80% growth), while CVs reached 68% of normal on better economic activity (better than estimates of 50% of
normal sales).
• We retain a Neutral stance on the sector and stay selective, despite a recovery as complete normalisation will take some time.
Preferred picks - Hero MotoCorp Bajaj Auto, M&M, Mayur Uniquoters, Bosch, Balkrishna Industries and Apollo Tyres.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Auto-Aug03_2020.pdf
Aug 10, 2020 Life Insurance Sector Update Positive 
Summary
• Continuing with the encouraging performance, private life insurers reported 26% y-o-y growth for total first-year premium for
July 2020, indicating a revert to normalisation, recovering from the COVID-19 lockdown impact.
• Notably, performance in July improved as compared to June, May and April, which indicates that the market is gradually
normalising.
• Going forward, we expect protection and annuity products to continue to see higher growth, but volatile capital markets/tepid
growth in banca channels are likely to keep traction low, especially in ULIPs for the near term.
• Our investment picks in order of preference are Bajaj Finserv (holding company of Bajaj Allianz Life), HDFC Life, ICICI Prudential,
and Max Financials.
Read report - https://www.sharekhan.com/MediaGalary/Equity/LifeInsurance-Aug10_2020.pdf
Aug 18, 2020 Q1FY2021 Consumer Goods Results Review Sector Update Positive 
Summary
• Q1FY2021 was a wash-out quarter for consumer goods companies (except for those in foods business) owing to supply
disruptions; June saw recovery with performance recovering to 90% of pre-COVID levels.
• Most companies saw margins expand on lower ad spends and stringent cost cuts.
• Recovery in rural demand, shift to branded products and primary sales matching secondary sales were some green shoots
that were visible.
• Preferred picks - Asian Paints, Hindustan Unilever, Dabur India, ITC, and Tata Consumer Products.
Upgrade  No change  Downgrade 

Note: The arrow indicates change in call and price target, if any, vis-à-vis the previous report

SECTOR UPDATE EQUITY FUNDAMENTALS
Sector View
Latest Chg
Aug 19, 2020 Q1FY2021 IT Results Review Sector Update Positive 
Summary
• IT companies managed supply-side concerns efficiently despite COVID-19-led disruptions; tier-I companies saw revenues fall
by 2-7%, largely in-line except Infosys that beat estimates.
• EBIT margin improved sequentially for most firms, led by lower travel expenses, cost optimisation, salary hike deferrals and a
strong rupee.
• As technology is a source of competitive differentiation in every industry, we believe spends on the same are expected to
increase in the long term.
• We upgrade our view on the sector from Neutral to Positive; Preferred picks: HCL Tech, Tech Mahindra, Infosys, and Birlasoft.
Aug 19, 2020 Q1FY2021 Pharmaceuticals Results Review Sector Update Neutral 
Summary
• Q1FY21 was a phenomenal quarter for Sharekhan’s pharma universe, which clocked a strong double digit earnings growth.
• India business staged a strong performance while US business performed poorly. The utilization levels across plants improved
& were close to normal levels by end of Q1FY21.
• Although valuation of most pharma companies seems reasonable, the US business is expected to remain under stress. We
stay Neutral on the sector. We prefer API players & India focused MNC companies and have a constructive view on this space.
• Preferred Picks: Divis Laboratories, Laurus Labs, Granules, Sanofi India, Abbott India.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Q1FY2021_Pharma_Results_Review-Aug19_2020.pdf
Aug 26, 2020 Cement Sector Update Positive 
Summary
• Cement output steadily improved m-o-m till June 2020. However, demand during July and August is expected to remain muted
on account of seasonality and intermittent regional lockdowns in the country.
• Cement prices (ex-South) declined by 2-4% m-o-m (flat to marginally up y-o-y) during August 2020. South witnessed price
decline of 6% m-o-m, although are up 14% y-o-y.
• International and domestic pet coke prices rise 30%+ and 8% m-o-m rise while retail diesel prices decline 2% m-o-m for August
2020.
• We stay Positive on the sector. We have a Buy rating on UltraTech, Ramco, and JK Lakshmi Cement, while we have a Hold rating
on Shree Cement and Grasim.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Cement_Sector-Aug26_2020.pdf

EQUITY FUNDAMENTALS SECTOR UPDATE
Sector View
Latest Chg
Aug 27, 2020 Automobiles Sector Update Positive 
Summary
• August 2020 would be the fourth consecutive month of improvement in volumes post the lockdown. Most of the segment
(except CVs) likely to report flat to positive growth on y-o-y basis.
• Pick-up in economic activity with the unlock measures by Govt, strong rural sentiments, rising preference for personal
transportation and festive led inventory build-up to drive improvement.
• Management commentaries are positive and they expect the demand improvement to sustain in festives; we expect growth to
resume from Sep 20. We expect strong double-digit growth in FY22 as economic activities normalise. Hence, we upgrade our
view on the sector to “Positive” from “Neutral” earlier.
• Preferred Picks - M&M, Hero Motocorp, Bajaj Auto in OEM; Balkrishna Industries, Mayur Uniquoters, Bosch, Sundram Fasteners,
Suprajit Engineering in ancillary space.
Read report - https://www.sharekhan.com/MediaGalary/Equity/Auto_Monthly_Preview-Aug27_2020.pdf

TREND & VIEW EQUITY TECHNICALS
Bulls taking a pause

Daily view
The Nifty formed a large bearish outside bar along with
an Engulfing bear candle on the last trading session of
August 2020
Since then, the index has been trading with a downward
bias
It is forming a lower top lower bottom pattern on the
daily chart
Minor-degree bounces on the way down have been
fading out near the hourly upper Bollinger Band
The daily momentum indicator is bearish
The Nifty has formed a Wedge pattern in its recent
structure and has taken support near the lower end of
a rising channel
The index has a near term support at the swing low of
11111
Weekly view
The Nifty retraced more than 78.6% of the January-
March decline
However, the index couldn’t sustain at its highs
Over there, the Nifty formed a bearish Outside bar and
an Engulfing bear candle on the weekly chart as well
Thus, the swing high of 11794 is likely to act as a crucial
resistance going ahead
Key support on the weekly chart is at the swing low of
10882
Monthly view
The Nifty had a pretty sharp rise from the March low
of 7511.
The index witnessed positive close for the last three
consecutive months
Monthly closing level for the month of August nearly
coincided with the 78.6% retracement of the January-
March fall
The overall structure suggests that the Nifty is poised
to consolidate from the medium-term perspective
Medium Term Trend
Lower Upper Support /
Index Trend
Boundary Boundary Resistance
Nifty 10882
 11795 10882 / 11795

EQUITY DERIVATIVES MONTHLY VIEW
11200-11300 is a strong support for Nifty

The August series continued the upward momentum seen Top five stock futures with the highest open interest in
in July and closed with a gain of ~4%. On the other hand, the current series are:
the Bank Nifty after consolidation in the July expiry, it was
OPEN INTEREST
the star performer for the August series as it clocked gain FUTURES
(Rs. Cr)
of around 9%. On the Open Interest front, we saw addition
RELIANCE 7,293.41
in the position in the Nifty as series-on-series, it increased
by around 9% indicating long build-up in the index and the BHARTIARTL 6,743.60
rollover were also on the higher side at around 79.92%
HDFC 4,932.81
versus the three-month average of 77.40% with a positive
rollover cost of 20 points indicating majority of the long HDFCBANK 4,662.39
position has been carried forward to the next series. While ICICIBANK 4,336.69
on the Bank Nifty front series-on-series we saw reduction Source: Sharekhan
in open interest of around 3% indicating a short covering
in indices and rollover were also on the higher side 77.91% Top five stock options with the highest open interest in
versus a three-month average of 74.76%, which states that the current series are:
there is more room for short covering in the index.
OPEN INTEREST
OPTIONS
On the other hand, the FII action has been positive (Rs. Cr)
throughout the August series. In cash market, FIIs were net RELIANCE 6,870.49
buyers to the tune of Rs. 18,141 crore. While on the derivative
BHARTIARTL 2,976.35
front in Index Futures they are net long with around 70,000
contracts and they have carried forward more longs then SBIN 2,787.89
shorts in the September series. The long-short ratio have ITC 2,164.29
also been increased to around 75% which clearly states
that they have formed aggressive long position in the Index ICICIBANK 1,857.44
Futures. Source: Sharekhan
MARKET WIDE VS NIFTY ROLLOVER ACTIVITY:

Nifty Market Wide
View for September series:
100.00%
90.00% On the options front, in the September monthly expiry, the
80.00%
build-up is quite scattered. In the nearest strike 11000 PE
70.00%
60.00%
is highest in terms of open interest with 28.08 lakh shares
followed by 10500 PE with around 21.78 lakh shares. On
91.94%
50.00%
90.46%
89.89%
88.82%
87.85%
86.69%
81.59%
81.13%
80.60%
79.92%
78.93%
77.91%
77.59%
75.67%
75.30%
40.00%
71.29%
the call side, the 11500 CE has the highest open interest
62.12%
55.19%
30.00%
20.00% with 19.84 lakh shares followed by 12000 strike, which has
10.00% around 17.30 lakh shares in the open interest.
0.00%
Put-call Ratio (PCR) in September series started on the
Aug
May
Sep
Jul
Apr
Jun
higher side at 1.64 level currently at around 1.22. The

Rollover highlights: volatility index has been continuously cooling off and
The Nifty Futures began the September series with 1.22 touched 5 month low at around 18% in the August series,
crore shares versus 1.12 crore shares in open interest. however with some selling in international market India
The September series started with Rs.101,457 crore versus VIX bounced back till 24% levels . Seeing the above data
Rs. 95,448 crore in stock futures, Rs. 14,084 crore versus and with aggressive long build-up by FIIs along with long
Rs. 12,389 crore in Nifty futures & Rs.127,093 crore versus buildup and positive rollover in Nifty, we feel momentum in
Rs. 115,808 crore in index options and Rs.28,230 crore the market should continue on the higher side and Bank
versus 25,621 crore in stock options. Nifty could continue to outperform targeting 25000 levels
and support placed at around 21950-22000, while Nifty
Nifty September month rollover is higher at 79.92% versus
could also see more upside till 11500-11800 levels and
77.59%.
strong support at 11200-11300 levels. With implied volatility
Bank Nifty September month rollover is at 77.91% versus comparatively on the lower side one can also look to
75.30% hedge the long position which could be the ideal way to
Market-wide rollover is at 88.92% versus 87.85%. participate in the upside.

MONTHLY VIEW CURRENCY FUNDAMENTALS
Currencies: Rupee gains on weakness in the US Dollar and persistent FII inflows
Key points
CURRENCY LEVELS IN AUGUST (IN RS.)
India’s retail inflation increased by 6.93% in July 2020 compared to
6.23% in June 2020 Currency High Low Close % Monthly Change
India Industrial production declined by 16.6% in June 2020 as compared USDINR 75.17 73.24 73.61 -1.59
to 1.3% rise in June 2019
EURINR 89.44 86.98 87.52 -1.37
India GDP contracted by 23.9% in Q1 FY21 as compared to 3.1% rise in
Q4 FY20 GBPINR 99.30 97.17 97.96 -0.10
US Prelim GDP data showed economy contracted by 31.7% in Q2CY20 as JPYINR 71.07 68.87 69.51 -2.72
compared to advance estimates of -32.9%
Spot INR Movement in August Spot INR Movement in August

USDINR JPYINR EURINR GBPINR
71
89.5
75 70.8
99
70.6
89
74.5 70.4
98.5
70.2
88.5
70
74 98
69.8 88
69.6
73.5 97.5
69.4 87.5
69.2
73 69 87 97
03-Aug-20
05-Aug-20
07-Aug-20
09-Aug-20
11-Aug-20
13-Aug-20
15-Aug-20
17-Aug-20
19-Aug-20
21-Aug-20
23-Aug-20
25-Aug-20
27-Aug-20
29-Aug-20
31-Aug-20
03-Aug-20
05-Aug-20
07-Aug-20
09-Aug-20
11-Aug-20
13-Aug-20
15-Aug-20
17-Aug-20
19-Aug-20
21-Aug-20
23-Aug-20
25-Aug-20
27-Aug-20
29-Aug-20
31-Aug-20
USD-INR: CMP - Rs. (73.40)
Indian Rupee appreciated by 1.59% in the previous month on weakness in the UD Dollar and a rise in risk appetite in global markets. Market
sentiments improved as US Food & Drug Administration authorised the use of blood plasma from recovered patients as a treatment option
for COVID-19 and US and Chinese trade negotiators said they had constructive talks over the future of the Phase-1 trade deal. Furthermore,
continued FII inflows supported the Rupee. Additionally, Reserve Bank of India Governor Shaktikanta Das said that the bank has “not
exhausted” monetary policy options and stance will continue to be accommodative.
Outlook: The Indian Rupee is expected to trade with positive bias amid weakness in the US Dollar and a rise in risk appetite in the global
markets. Further, persistence FII inflows will support Rupee. Furthermore, the Reserve Bank of India announced liquidity boosting measures.
The central bank also said that the recent appreciation in the Rupee is working towards containing imported inflationary pressures. Statement
from RBI may spark speculation that the central bank is now comfortable with a stronger Rupee. However, sharp gains may be prevented
on disappointing macroeconomic data, ongoing concern over rising Coronavirus cases and tension between India and China along Line of
Actual control (LAC). Nikkei Services PMI data showed activity in sector contracted for six consecutive months. GDP contracted by 23.9% in
Q1 FY21 compared to 3.1% rise in Q4FY20. The CPI data is likely to show that Inflation remained above the mid-point of Reserve Bank of India’s
target range of 2-6%. Expected trading range in near term is 72.20-74.50.
EUR-INR: CMP - Rs. (86.60)

The Euro appreciated by 1.42% in the previous month on weakness in Dollar and improved economic data from Euro Area. However, sharp
upside was capped as US maintained its decision to keep tariff on EU goods.
Outlook: The Euro is expected to trade with negative bias amid disappointing economic data from the Euro Area. Further, the European
Central Bank chief economist Philip Lane’s statement on the currency will hurt Euro as it may spark speculation that the central bank is
worried about appreciation in Euro. He said Euro-Dollar rate “does matter” for monetary policy. Traders will remain cautious ahead of ECB
monetary policy meeting and Eurogroup meetings. However, a sharp downside may be cushioned on weakness in Dollar. Expected trading
range in near term is 85.0-88.0.
GBP-INR: CMP Rs. (97.50)

The British Pound appreciated by 2.18% in August on weakness in the US Dollar and a rise in risk appetite in the global markets. Further, Bank
of England kept its benchmark interest rate and its bond-buying programme unchanged and adopted less dovish tone. However, further
upside was capped on worries over the Brexit uncertainty. Trade talks between the UK and EU ended with no breakthrough agreement.
Outlook: The Pound is expected to trade with negative bias on disappointing economic data from country and dovish statements from Bank
of England policymakers. BOE’s policymakers warned that Britain’s economy could suffer more damage than predicted. Further, market fears
that UK will fail to seal trade deal with EU by the end of 2020 deadline as little progress has been made. Traders will remain cautious ahead
of Bank of England monetary policy. However, a sharp fall may be cushioned on weakness in the US Dollar and rise in risk appetite in the
global markets. Expected trading range in near term is 96.30-98.30
JPY-INR: CMP Rs. (69.10)

The Japanese Yen ended flat in the previous month. A rise in risk appetite in the global markets added downside pressure on Yen whereas
weakness in the US Dollar supported Yen. Further, demand for safe haven increased on concern that rising Coronavirus cases across globe
may hurt global economic recovery and Japanese Prime Minister Shinzo Abe resigned from its post due to worsening health.
Outlook: The Japanese Yen is expected to trade with negative bias on rise in risk appetite in the global markets and as worries over possible
shift away from Abe’s economic policy known as Abenomics faded after Yoshihide Suga, Chief Cabinet Secretary announced his candidacy
to become country’s next Prime Minister. However, a sharp fall may be prevented as safe-haven demand may increase on escalating tensions
between US and China over South China Sea. Markets fear that rising coronavirus cases across globe will dampen the economic recovery.
The Yen’s expected trading range in the near term is 68.0-70.0.
CMP as on September 03, 2020

CURRENCY TECHNICALS TREND & VIEW
USD-INR: On a slippery ground GBPINR: Consolidation mode
During August, the USD-INR pair witnessed a deep cut and closed During August, GBPINR witnessed a rangebound movement and
around the lows for the month. The price action was forecasted closed marginally in the red. On the monthly charts, it has formed a
accurately and was along the expected lines. Doji pattern indicating consolidation and indecision.
The price action in August suggests weakness and the Momentum On the weekly charts, the pair has formed a multiple doji patterns
indicator has triggered a negative crossover on the monthly charts. with long shadows on either side which only adds to the volatility,
Thus, both price and momentum indicator point towards further rather than any decisive price action.
downside.
The Bollinger bands on the weekly charts have begun to contract
Our approach towards the pair would be to sell on rise near
which indicates a consolidation is likely in the near term.
resistance. Considering the sharp fall, a bounce cannot be ruled out
and that would provide an opportunity to go short again on the pair. The pair is likely to consolidate in the range of 95.00-99.50.
On the downside, the pair is likely to slip down till 72 initially with
potential to extend fall till 70.32 where support cluster in the form of KST (5.61583)
15
the 40-month exponential moving average and the lower end of the
10
reverse channel is placed. 0
-5
-10
KST (3.25745)
9
GBPINR (97.8890, 98.3770, 96.5350, 97.3420, -0.59100) 115
8
7
6
5
110
4
3
2
1 105
0
-1
-2
USDINR - INDIAN RUPEE (73.2100, 73.5520, 72.7500, 73.2890, +0.03500) 81.5 100
81.0
80.5
80.0
79.5 95
79.0
78.5
78.0
77.5
77.0 90
76.5
76.0
75.5
75.0 85
74.5
74.0
73.5
73.0
72.5 80
72.0
71.5
71.0
70.5
70.0 75
69.5
69.0
68.5
68.0 70
67.5
67.0
66.5
66.0
65.5 2013 2014 2015 2016 2017 2018 2019 2020 2021
65.0
64.5
64.0
63.5
63.0
62.5
62.0
61.5
61.0
60.5
60.0
59.5
JPY-INR: Breakdown
59.0
Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020 Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 Mar
During the month of August, the pair decisively breached a four-

EUR-INR: Losing Momentum month consolidation on the downside and closed around the lows
for the month.
During August, EURINR witnessed consolidation after a sharp run-up The monthly momentum indicator triggered a bearish crossover
in July. It posted a monthly negative close after three monthly gains.
which is a sign of weakness. Thus, both price and momentum
The monthly momentum indicator though has a positive crossover. It indicator are pointing towards further weakness.
has flattened and is showing signs of loss of momentum. The weekly
momentum indicator has triggered a negative crossover indicating The pair has broken a four month long consolidation on the downside
weakness. and there is a high probability that it will retest the breakdown before
sliding further. The strategy to trade the pair would be look for signs
The Higher Top Higher Bottom formation is intact and structure
of weakness near resistance and initiate short positions.
remains in favour of the bulls. However, considering the loss of
momentum and the short term weakness in price we expect the pair The nature of the fall can be sharp and swift. We expect the pair to
to consolidate during the month. drift down till 66.50 – 64.70 where support in the form of 20 and 40
The range for consolidation is likely to be 83.70-89.44. month moving average respectively is placed.
KST (7.82353)
KST (-0.95012)
15 6
10 5
4
5
3
0
2
-5 1
-10 0
-1
EURINR (87.4210, 87.8830, 86.2460, 86.7520, -0.68400)
94 JPYINR (69.3869, 69.7549, 68.6924, 68.9714, -0.41650) 74.5
P 93
74.0
92
73.5
91
90 73.0
89 72.5
88
72.0
P 87
86 71.5
85 71.0
84 70.5
83
70.0
82
81 69.5
80 69.0
79
68.5
78
77 68.0
76 67.5
75
67.0
74
66.5
73
72 66.0
71 65.5
70
65.0
69
68 64.5
67 64.0
66
63.5
65
63.0
64
63 62.5
62 62.0
61
61.5
60
59 18 25 8 22 29 13 27 3 17 31 14 27 13 20 3 17 1 15 29 12 19 3 17 31 14 28 11 25 2 16 23 6 20
2013 2014 2015 2016 2017 2018 2019 2020 2021 October Novem ber Decem ber 2020 February March April May June July Augus t Septem ber October Novem ber
Currency View Reversal Supports Resistances Target

USD-INR DOWN 75.30 72.40 / 71.10 74.00 / 74.92 70.32
GBP-INR UP 93.70 96.50 / 95.00 98.40 / 99.30 102.00
EUR-INR UP 82.60 85.30 / 83.70 88.45 / 89.50 92.00
JYP-INR DOWN 71.20 67.80 / 66.50 69.76 / 70.40 64.70

PMS FUNDS PMS DESK
PRIME PICKS STRATEGY

OVERVIEW Prime Picks Portfolio Performance
(as of August 2020)
Prime Picks is a multi-cap discretionary PMS scheme.
It aims to outperform the BSE 200 & CNX Mid Cap 100 indices across Duration Prime Picks* BSE 200
market cycles. 1 Month 4.9% 3.3%
Scheme comprises two folios, Quality and Alpha, with a distinct investing 3 Months 16.9% 18.9%
style to offer.
6 Months -2.9% 1.8%
Based on the client risk profile allocation between conservative /moderate
/ aggressive. 1 Year 5.9% 4.3%
It’s a long only fund. Since inception
4.7% 4.3%
(21 Dec, 2018)
INVESTMENT STRATEGY *Note: Net of Quarterly AMC Fees
*Note: Returns mentioned are TWRR method
Right mix of two different strategies with a high standard of
management and corporate governance through in-depth research Disclaimer: Returns are based on a client’s returns since
by experienced in-house fundamental research team. inception and may be different from those depicted in the risk
disclosure document.
Aims to leverage on investment opportunities in structural
growth sectors through Quality folio whereas the allocation to more
aggressive Alpha folio would add to superior outperformance across Top 5 Stocks – Prime Picks QUALITY
market cycles. 1 ASIAN PAINTS
Maintain judicious mix between Quality and Alpha through dynamic 2 HDFC BANK
investment strategy and providing flexibility to investors to make
changes to allocations between the two folios once every year. 3 ICICI BANK
4 HDFC LIFE
PRICING & PRODUCT FEATURES 5 RELIANCE INDUSTRIES
Minimum investment of Rs.50 lakh Top 5 Stocks – Prime Picks ALPHA

Charges 1 BATA INDIA
¾ 2% per annum (plus taxes); AMC fee charged every quarter. 2 MAHANAGAR GAS
¾ 0.5% brokerage on every trade executed. 3 MAYUR UNIQUOTERS
¾ 20% profit sharing after the 18% hurdle is crossed at the end of 4 SANOFI INDIA
every fiscal (with higher watermark basis). 5 TATA CONSUMER
18.9%
16.9%
5.9%
4.9% 4.7%
4.3% 4.3%
3.3%
1.8%
1 Month 3 Months 6 Months 1 Year Since inception
-2.9%
Prime Picks PMS BSE 200

ADVISORY DESK MONTHLY PERFORMANCE
Advisory Products and Services

The Advisory Desk is a central desk consisting of a Mumbai- Advisory Products & Services
Advisory Products & Services
based expert team that runs various sample model portfolios
for illustrative purposes only for clients of all profiles, be they
traders or investors.
These products are different from Sharekhan research-based T d
Trader
Investor
technical and fundamental offerings as these essentially
try to capture the trading opportunities in stocks where
momentum is expected before or after some event including Actionable Ideas
A i bl Id
MID Derivative Sharekhan Intraday Calls
the announcement of results or where some news/event is Pre Market Action (Cash)
probable. Derivative Calls Derivative Idea
(Opt) (Fut+Opt)
Advisory products are ideal for those who do not have time to
Stocks In
Stocks In Technical
Technical Derivative
Derivative
either monitor the market tick by tick or shift through pages of News view view
research for data or pour over complex charts to catch a trend.
However, all these products require perfect discipline and money management.
For Investor
ACTIONABLE IDEAS
These calls focus on generating absolute returns over a timeframe of 6-12 months and have a favourable risk-reward ratio.
Stocks are closely tracked based on regular interaction with companies’ management to stay abreast of the business
outlook. For details about the product, please write to us at advisory@sharekhan.com.
For traders
INTRADAY CALLS
These are technical analysis calls. Calls will be generated in the cash segment and closed before the end of the trading
day. These calls have pre-defined stop loss, targets. For details of the product, please write to us at advisory@sharekhan.
com.
DERIVATIVE CALLS
These calls are based on the analysis of open interest, implied volatility and put-call ratio in the derivatives market. It is
a leveraged product and ideal for aggressive traders. These calls have a pre-defined stop loss, target, timeframe and
quantity to be executed. For more details on this product, please write to us at derivative@sharekhan.com.
DERIVATIVE IDEA FUTURES
Calls are in (stocks & index) futures segment, based on an analysis of open interest, implied volatility and the put-call ratio
in the derivatives market. It is a leveraged product and ideal for aggressive traders. These calls have pre-defined stop
loss, targets, timeframe and quantity to be executed. For more details on this product, please write to us at derivative@
sharekhan.com.
SHAREKHAN PRE-MARKET ACTION
This report gives us stocks in news, with likely the price effect which is valid for a day. The report has different sections
- Stocks in News, Events, Technical View and Derivative View alongwith positive and negative bias stocks. The report is
valid for a day, for more details please write to us on advisory@sharekhan.com.
Report Card
Product Intraday Calls (Cash) Derivative Calls Derivative Idea Future and Strategy
Month August 20 CY 20 August 20 CY 20 August 20 CY 20
No. of calls 48 224 37 481 3 66
Profit booked 26 128 20 249 0 36
Stop loss hit 22 96 17 232 3 30
Strike rate (%) 54% 57% 54% 52% 0% 55%

MF PICKS MUTUAL FUNDS DESK
Sharekhan mutual fund Finder September 2020

Top Equity Fund Picks Data as on August 03, 2020
Absolute % Compounded Annualised %
(Point to Point) (Point to Point)
Scheme Name *Riskometer NAV (Rs.)
6 Months Since
1 yr 3 yrs 5 yrs Inception
Large Cap Funds
Axis Bluechip Fund - Growth Moderately High 30 -6.9 3.9 8.4 8.4 10.9
BNP Paribas Large Cap Fund - Growth Moderately High 91 -4.9 4.0 3.8 5.2 15.0
Mirae Asset Large Cap Fund - Reg - Growth Moderately High 49 -6.0 0.6 3.4 7.7 13.8
Kotak Bluechip Fund - Reg - Growth Moderately High 232 -6.1 4.6 2.9 5.2 18.4
UTI Mastershare Unit Scheme - Growth Moderately High 118 -6.9 1.8 2.8 4.7 14.8
ICICI Prudential Bluechip Fund - Growth Moderately High 40 -7.1 -0.9 2.0 5.7 12.0
HSBC Large Cap Equity Fund - Growth Moderately High 204 -7.0 -0.1 1.6 5.8 18.6
Large & Mid Cap Fund
Invesco India Growth Opportunities Fund - Growth Moderately High 33 -9.1 2.1 3.3 6.2 9.6
Kotak Equity Opportunities Fund - Reg - Growth Moderately High 120 -8.7 5.6 2.2 6.6 16.9
Canara Robeco Emerging Equities - Growth Moderately High 93 -6.4 7.7 2.2 7.7 15.6
Sundaram Large and Mid Cap Fund - Reg - Growth Moderately High 32 -13.7 -1.5 2.1 6.1 9.0
SBI Large & Midcap Fund - Growth Moderately High 206 -12.6 -1.2 1.1 4.6 13.3
DSP Equity Opportunities Fund - Reg - Growth Moderately High 213 -9.8 2.7 0.9 6.6 16.3
Principal Emerging Bluechip Fund - Growth Moderately High 102 -8.8 6.8 0.6 7.0 21.9
IDFC Core Equity Fund - Reg - Growth Moderately High 41 -11.6 -2.3 -1.8 4.4 9.8
Mid Cap Fund
Axis Midcap Fund - Growth Moderately High 39 -4.4 13.3 8.9 7.3 15.6
Invesco India Mid Cap Fund - Growth Moderately High 50 -5.4 12.7 4.0 6.6 12.8
DSP Midcap Fund - Reg - Growth Moderately High 57 -6.1 11.8 2.4 7.8 13.4
Kotak Emerging Equity Fund - Reg - Growth Moderately High 38 -11.7 5.6 0.8 6.4 10.4
Edelweiss Mid Cap Fund - Growth High 26 -9.0 6.2 0.4 4.6 7.8
BNP Paribas Mid Cap Fund - Growth High 32 -7.8 6.7 -1.3 3.4 8.4
Franklin India Prima Fund - Growth Moderately High 844 -13.9 -5.0 -2.5 4.1 18.1
Small Cap Fund
Axis Small Cap Fund - Reg - Growth Moderately High 30 -13.4 8.2 4.9 7.5 17.6
Kotak Small Cap Fund - Reg - Growth Moderately High 69 -12.2 8.6 -1.9 4.7 13.3
HDFC Small Cap Fund - Growth Moderately High 34 -13.1 -8.6 -3.1 4.8 10.5
ICICI Prudential Smallcap Fund - Ret - Growth Moderately High 23 -16.6 -3.6 -4.9 1.3 6.6
L&T Emerging Businesses Fund - Reg - Growth High 19 -16.4 -9.3 -7.6 4.7 11.1
Franklin India Smaller Companies Fund - Growth Moderately High 42 -18.4 -11.9 -8.7 0.7 10.3
Focused Fund
SBI Focused Equity Fund - Growth Moderately High 140 -10.7 2.1 6.2 8.5 18.1
Axis Focused 25 Fund - Growth Moderately High 28 -10.0 3.0 5.0 8.6 13.5
Sundaram Select Focus - Reg - Growth Moderately High 175 -8.1 -0.7 3.6 6.0 17.2
Principal Focused Multicap Fund - Growth Moderately High 65 -5.3 7.7 3.4 6.2 13.6
Motilal Oswal Focused 25 Fund - Reg - Growth Moderately High 23 -6.0 7.7 2.8 5.7 11.9
Aditya Birla Sun Life Focused Equity Fund - Growth Moderately High 58 -7.0 1.7 1.1 5.1 12.6
Multi Cap Funds
UTI Equity Fund - Growth Moderately High 147 -5.9 10.2 6.1 6.7 11.8
Canara Robeco Equity Diversified Fund - Growth Moderately High 138 -4.0 7.9 5.8 6.5 16.8
DSP Equity Fund - Reg - Growth Moderately High 39 -10.4 4.3 3.5 6.4 11.0
Kotak Standard Multicap Fund - Reg - Growth Moderately High 34 -9.5 -0.3 2.0 6.8 11.8
SBI Magnum Multi Cap Fund - Growth Moderately High 45 -11.7 -4.7 0.6 5.6 10.6
Aditya Birla Sun Life Equity Fund - Growth Moderately High 677 -11.3 -0.1 -0.3 6.0 21.2
Principal Multi Cap Growth Fund - Growth Moderately High 131 -7.7 -0.2 -0.5 5.7 13.9
HDFC Equity Fund - Growth Moderately High 556 -12.9 -12.1 -2.5 2.7 17.0

MUTUAL FUNDS DESK MF PICKS
Data as on August 03, 2020

Absolute % Compounded Annualised %
(Point to Point) (Point to Point)
Scheme Name *Riskometer NAV (Rs.)
6 Months Since
1 yr 3 yrs 5 yrs Inception
Value & Contra Funds
Invesco India Contra Fund - Growth Moderately High 48 -3.2 7.2 5.3 8.1 12.4
Kotak India EQ Contra Fund - Reg - Growth Moderately High 51 -7.7 1.4 3.9 6.6 11.4
Tata Equity P/E Fund - Reg - Growth Moderately High 128 -4.9 1.1 -0.3 6.9 17.1
HDFC Capital Builder Value Fund - Growth Moderately High 254 -8.0 -4.5 -1.4 4.0 13.0
IDFC Sterling Value Fund - Reg - Growth Moderately High 40 -18.0 -11.1 -7.6 1.1 11.7
ELSS
Canara Robeco Equity Tax Saver Fund - Growth Moderately High 68 -2.1 9.7 6.6 7.0 18.1
Axis Long Term Equity Fund - Growth Moderately High 44 -11.3 1.4 4.9 7.1 15.1
Mirae Asset Tax Saver Fund - Reg - Growth Moderately High 18 -5.2 3.7 4.8 -- 13.1
Invesco India Tax Plan - Growth Moderately High 50 -6.3 5.1 3.9 6.4 12.6
BNP Paribas Long Term Equity Fund - Growth Moderately High 39 -5.8 4.9 2.6 4.3 9.8
Kotak Tax Saver Fund - Reg - Growth Moderately High 43 -10.5 1.3 1.8 5.5 10.4
Aditya Birla Sun Life Tax Relief 96 - Growth Moderately High 30 -7.5 3.8 1.7 5.8 9.2
DSP Tax Saver Fund - Growth Moderately High 47 -8.8 1.0 1.6 6.7 12.0
Thematic/Sector Funds
Aditya Birla Sun Life India GenNext Fund - Growth High 82 -10.6 3.4 3.2 7.8 15.1
DSP Natural Resources & New Energy Fund - Reg - Gth High 28 -3.4 -1.0 -4.4 8.3 8.8
ICICI Prudential Banking and Financial Services Fund - Retail - Growth High 48 -27.3 -21.9 -6.9 4.3 14.1
Aditya Birla Sun Life Banking and Financial Services Fund - Reg -
High 22 -27.5 -20.3 -7.2 4.0 12.4
Growth
L&T Infrastructure Fund - Reg - Growth High 12 -20.5 -13.4 -7.9 1.3 1.7
BNP Paribas Equity schemes

Absolute
Compounded Annualised %
Scheme % (Point to
(Point to Point)
Scheme name *Riskometer Category Point)
Since
6 Months 1 yr 3 yrs 5 yrs
Inception
Aggressive
BNP Paribas Substantial Equity Hybrid Fund - Reg - Growth Moderately High -2.7 8.7 6.6 -- 7.5
Hybrid
BNP Paribas Large Cap Fund - Growth Moderately High Large Cap -4.9 4.0 3.8 5.2 15.0
BNP Paribas Long Term Equity Fund - Growth Moderately High ELSS -5.8 4.9 2.6 4.3 9.8
BNP Paribas Multi Cap Fund - Growth Moderately High Multi Cap -11.9 -0.7 -0.8 3.8 10.6
BNP Paribas Mid Cap Fund - Growth High Mid Cap -7.8 6.7 -1.3 3.4 8.4
BNP Paribas Focused 25 Equity Fund - Reg - Growth Moderately High Focused -7.8 1.8 -- -- -2.1
BNP Paribas India Consumption Fund - Reg - Growth High Thematic -5.6 10.1 -- -- 12.1
*The Riskometer will indicate five levels of risk – low (principal at low risk), moderately low (principal at moderately low risk), moderate (principal at moderate risk), moderately high (principal at moderately high risk) and high (principal at
high risk).
Every individual has a different investment requirement, which depends on his financial goals and risk-taking capacities. We at Sharekhan first understand the individual’s investment objectives and risk-
taking capacity, and then recommend a suitable portfolio. So, we suggest that you get in touch with our Mutual Fund Advisor before investing in the best funds.n
Sharekhan Limited, its analyst or dependant(s) of the analyst might be holding or having a postition in the mutual funds mentioned in the article.

MF PICKS MUTUAL FUNDS DESK
Sharekhan mutual fund Finder September 2020

Top SIP Fund Picks
(*invested on 1st day of every month) Data as on August 03, 2020
SIP INVST (Monthly Rs. 1,000)* 1 year 3 years 5 Year

Total amount invested 12,000 36,000 60000
Present Compounded Present Compounded Present Compounded
Scheme Name *Riskometer NAV (Rs.) Value annualised value annualised value annualised
(Rs.) return (%) (Rs.) return (%) (Rs.) return (%)
Large Cap Fund
Axis Bluechip Fund - Growth Moderately High 30 12,118 2.1 39,177 5.9 75,548 9.4
BNP Paribas Large Cap Fund - Growth Moderately High 91 12,280 5.1 38,248 4.2 70,094 6.4
Kotak Bluechip Fund - Reg - Growth Moderately High 232 12,409 7.5 37,417 2.7 68,306 5.3
Mirae Asset Large Cap Fund - Reg - Growth Moderately High 49 12,292 5.4 36,928 1.8 70,587 6.6
UTI Mastershare Unit Scheme - Growth Moderately High 118 12,251 4.6 36,663 1.3 67,346 4.7
HSBC Large Cap Equity Fund - Growth Moderately High 204 12,165 3.0 36,477 0.9 67,740 5.0
ICICI Prudential Bluechip Fund - Growth Moderately High 40 12,160 2.9 35,872 -0.2 66,970 4.5
Large & Mid Cap Fund
Mirae Asset Emerging Bluechip Fund - Growth Moderately High 55 12,584 10.8 38,677 5.0 75,763 9.6
Kotak Equity Opportunities Fund - Reg - Growth Moderately High 120 12,396 7.3 37,407 2.6 69,696 6.1
Canara Robeco Emerging Equities - Growth Moderately High 93 12,507 9.4 36,862 1.6 70,301 6.5
Invesco India Growth Opportunities Fund -
Moderately High 33 12,067 1.2 36,303 0.6 69,017 5.7
Growth
DSP Equity Opportunities Fund - Reg - Growth Moderately High 213 12,163 3.0 35,959 -0.1 67,081 4.6
Principal Emerging Bluechip Fund - Growth Moderately High 102 12,366 6.7 35,786 -0.4 67,829 5.0
SBI Large & Midcap Fund - Growth Moderately High 206 12,027 0.5 35,197 -1.5 64,774 3.1
Sundaram Large and Mid Cap Fund - Reg -
Moderately High 32 11,829 -3.1 35,133 -1.7 66,605 4.3
Growth
Mid Cap Fund
Axis Midcap Fund - Growth Moderately High 39 12,527 9.7 39,980 7.3 76,456 9.9
DSP Midcap Fund - Reg - Growth Moderately High 57 12,676 12.6 37,906 3.6 70,777 6.8
Invesco India Mid Cap Fund - Growth Moderately High 50 12,679 12.6 37,725 3.2 70,290 6.5
Kotak Emerging Equity Fund - Reg - Growth Moderately High 38 12,350 6.4 36,001 0.0 66,680 4.3
BNP Paribas Mid Cap Fund - Growth High 32 12,471 8.7 35,914 -0.2 64,280 2.8
Edelweiss Mid Cap Fund - Growth High 26 12,395 7.3 35,331 -1.3 65,190 3.4
Franklin India Prima Fund - Growth Moderately High 844 11,747 -4.6 33,173 -5.5 60,535 0.4
Small Cap Fund
Axis Small Cap Fund - Reg - Growth Moderately High 30 12,077 1.4 38,168 4.1 71,288 7.1
SBI Small Cap Fund - Growth Moderately High 51 12,340 6.2 35,794 -0.4 70,346 6.5
Kotak Small Cap Fund - Reg - Growth Moderately High 69 12,513 9.5 35,238 -1.5 63,349 2.2
Nippon India Small Cap Fund - Growth Moderately High 37 12,478 8.8 33,708 -4.5 63,894 2.6
ICICI Prudential Smallcap Fund - Ret - Growth Moderately High 23 11,980 -0.4 33,114 -5.7 58,456 -1.1
HDFC Small Cap Fund - Growth Moderately High 34 11,981 -0.4 31,139 -9.7 59,309 -0.5
L&T Emerging Businesses Fund - Reg - Growth High 19 11,620 -6.8 29,841 -12.5 56,767 -2.3

MUTUAL FUNDS DESK MF PICKS
(*invested on 1st day of every month) Data as on August 03, 2020
SIP INVST (Monthly Rs. 1,000)* 1 year 3 years 5 Year

Total amount invested 12,000 36,000 60000
Present Compounded Present Compounded Present Compounded
Scheme Name *Riskometer NAV (Rs.) Value annualised value annualised value annualised
(Rs.) return (%) (Rs.) return (%) (Rs.) return (%)
Focused Fund
Motilal Oswal Focused 25 Fund - Reg - Growth Moderately High 22 12,259 4.8 37,852 3.5 70,053 6.3
Principal Focused Multicap Fund - Growth Moderately High 65 12,318 5.8 37,827 3.4 70,079 6.4
Axis Focused 25 Fund - Growth Moderately High 28 12,052 0.9 37,360 2.6 72,861 8.0
SBI Focused Equity Fund - Growth Moderately High 140 11,966 -0.6 37,281 2.4 71,319 7.1
Sundaram Select Focus - Reg - Growth Moderately High 175 12,067 1.2 36,895 1.7 69,714 6.1
Aditya Birla Sun Life Focused Equity Fund -
Moderately High 58 12,286 5.2 36,438 0.8 66,768 4.4
Growth
Multi Cap Funds
UTI Equity Fund - Growth Moderately High 147 12,645 12.0 38,866 5.3 72,287 7.6
Canara Robeco Equity Diversified Fund -
Moderately High 138 12,537 9.9 38,792 5.2 73,303 8.2
Growth
DSP Equity Fund - Reg - Growth Moderately High 39 12,066 1.2 37,261 2.4 69,849 6.2
Kotak Standard Multicap Fund - Reg - Growth Moderately High 34 12,115 2.1 36,301 0.6 68,417 5.4
Aditya Birla Sun Life Equity Fund - Growth Moderately High 677 12,067 1.2 35,070 -1.8 65,362 3.5
SBI Magnum Multi Cap Fund - Growth Moderately High 45 11,781 -4.0 34,721 -2.5 64,594 3.0
Principal Multi Cap Growth Fund - Growth Moderately High 131 12,209 3.8 34,552 -2.8 65,132 3.4
HDFC Equity Fund - Growth Moderately High 555 11,535 -8.3 32,704 -6.5 60,619 0.4
Value & Contra Funds
Invesco India Contra Fund - Growth Moderately High 48 12,707 13.1 37,581 3.0 72,046 7.5
Kotak India EQ Contra Fund - Reg - Growth Moderately High 51 12,331 6.1 36,797 1.5 70,013 6.3
Tata Equity P/E Fund - Reg - Growth Moderately High 127 12,351 6.4 35,148 -1.6 66,662 4.3
HDFC Capital Builder Value Fund - Growth Moderately High 254 12,159 2.9 33,372 -5.1 61,704 1.1
IDFC Sterling Value Fund - Reg - Growth Moderately High 40 11,734 -4.8 29,958 -12.2 55,105 -3.5
Tax-saving funds (ELSS)
Canara Robeco Equity Tax Saver Fund -
Moderately High 68 12,729 13.5 39,423 6.3 73,854 8.5
Growth
BNP Paribas Long Term Equity Fund - Growth Moderately High 39 12,363 6.7 37,701 3.2 68,550 5.4
Invesco India Tax Plan - Growth Moderately High 50 12,332 6.1 37,038 2.0 69,467 6.0
Axis Long Term Equity Fund - Growth Moderately High 44 11,824 -3.2 36,980 1.9 70,172 6.4
Kotak Tax Saver Fund - Reg - Growth Moderately High 43 12,176 3.2 36,710 1.3 68,022 5.1
DSP Tax Saver Fund - Growth Moderately High 47 12,103 1.9 36,360 0.7 67,788 5.0
Aditya Birla Sun Life Tax Relief 96 - Growth Moderately High 30 12,058 1.1 35,299 -1.3 66,298 4.1
Motilal Oswal Long Term Equity Fund - Reg -
Moderately High 16 11,642 -6.4 34,022 -3.8 64,806 3.1
Growth
*The Riskometer will indicate five levels of risk – low (principal at low risk), moderately low (principal at moderately low risk), moderate (principal at moderate risk), moderately high (principal at moderately high risk) and high (principal at
high risk).
Every individual has a different investment requirement, which depends on his financial goals and risk-taking capacities. We at Sharekhan first understand the individual’s investment objectives and risk-
taking capacity, and then recommend a suitable portfolio. So, we suggest that you get in touch with our Mutual Fund Advisor before investing in the best funds.n
Sharekhan Limited, its analyst or dependant(s) of the analyst might be holding or having a postition in the mutual funds mentioned in the article.

EARNINGS GUIDE EQUITY FUNDAMENTALS
Sharekhan Earnings Guide Prices as on September 03, 2020

CMP Sales Net profit EPS (%) EPS PE (x) RoCE (%) RoNW (%) DPS Div
Company
(Rs) FY20 FY21E FY22E FY20 FY21E FY22E FY20 FY21E FY22E growth FY20 FY21E FY22E FY21E FY22E FY21E FY22E Rs. Yld(%)
Automobiles
Apollo Tyres 124 16,327.0 15,721.8 17,967.5 442.2 583.5 857.5 7.7 10.2 13.5 32% 16.1 12.1 9.2 5.3 6.6 5.5 7.0 3.0 2.4
Ashok Leyland 69 17,467.5 14,685.8 20,664.3 395.3 18.5 699.1 1.3 0.1 2.4 36% 53.4 694.5 28.9 0.6 8.1 0.3 10.8 3.1 4.5
Bajaj Auto 2,895 29,918.7 27,108.1 33,481.9 5,100.0 4,330.7 5,411.1 176.3 149.7 187.1 3% 16.4 19.3 15.5 25.7 28.7 19.8 22.0 120.0 4.1
HERO MOTOCORP 2,941 28,836.1 27,321.9 34,067.1 3,178.7 2,659.0 3,673.5 159.2 133.1 183.9 7% 18.5 22.1 16.0 23.1 29.8 17.8 22.9 90.0 3.1
M&M 644 44,865.5 43,728.2 53,982.5 3,550.9 3,475.6 4,688.5 28.6 28.0 37.7 15% 22.5 23.0 17.1 11.1 13.7 8.8 11.0 8.5 1.3
Maruti Suzuki 7,072 75,610.6 69,333.7 83,998.3 5,650.6 5,736.7 7,826.8 187.1 189.9 259.1 18% 37.8 37.2 27.3 11.5 15.9 9.7 13.6 60.0 0.8
TVS Motor 435 16,423.3 14,892.5 19,060.3 624.6 467.1 847.9 13.1 9.8 17.8 17% 33.2 44.4 24.4 13.9 20.8 11.5 18.4 3.5 0.8
Banks & Financials
Axis Bank 475 25,206.0 24,934.0 27,330.0 1,627.0 3,509.0 9,909.0 5.8 12.4 35.1 146% 81.8 38.3 13.5 - - 3.9 10.2 0.0 0.0
Bajaj Finance 3,617 16,901.0 19,151.0 21,406.0 5,264.0 5,590.0 8,239.0 87.7 93.2 137.3 25% 41.2 38.8 26.3 - - 16.1 20.1 10.0 0.3
Bajaj Finserv 6,355 54,351.0 64,015.0 79,925.0 3,369.0 4,091.0 5,496.0 212.0 257.0 345.0 28% 30.0 24.7 18.4 - - - - 5.0 0.1
Bank of Baroda 47 27,451.3 30,784.2 33,612.0 546.2 1,648.2 2,330.2 1.2 3.6 5.0 104% 39.4 13.1 9.5 - - 2.3 3.1 0.0 0.0
Bank of India 50 15,399.0 14,267.0 16,212.0 (2,929.0) 1,477.0 1,536.0 -9.4 1.3 4.9 - -5.4 38.8 10.3 - - 0.9 3.5 0.0 0.0
Federal Bank 56 4,648.0 5,111.5 5,866.7 1,542.8 1,478.3 1,902.1 7.7 7.6 9.8 13% 7.2 7.3 5.7 - - 9.8 11.6 0.0 0.0
HDFC 1,810 15,194.0 11,716.0 12,523.0 17,770.0 10,994.0 11,303.0 102.9 63.4 65.2 -20% 17.6 28.5 27.8 - - 11.9 11.5 21.0 1.2
HDFC Bank 1,131 56,186.0 69,271.0 80,787.0 26,257.0 30,955.0 40,245.0 48.0 56.6 73.6 24% 23.6 20.0 15.4 - - 17.1 19.5 2.5 0.2
ICICI Bank 383 33,267.0 34,647.0 38,264.0 7,931.0 13,931.0 17,248.0 12.3 21.5 26.6 47% 31.1 17.8 14.4 - - 11.4 12.6 1.5 0.4
LIC Housing Finance 303 4,689.0 4,391.0 5,612.9 2,401.8 1,926.0 2,277.7 47.6 38.1 45.1 -3% 6.4 8.0 6.7 - - 11.8 12.1 8.0 2.6
Max Financial 614 16,183.0 18,523.0 21,270.0 269.0 305.0 345.0 10.0 11.2 12.8 13% 61.4 54.9 48.0 - - - - 0.0 0.0
Punjab National Bank 35 17,438.0 15,994.0 17,686.0 336.0 977.0 1,198.0 0.5 1.5 1.8 90% 69.0 23.0 19.2 - - 1.6 1.9 0.0 0.0
SBI 213 98,085.0 1,08,125.0 1,15,561.0 14,488.0 21,031.0 25,764.0 16.2 23.6 28.9 34% 13.2 9.0 7.4 - - 8.8 10.0 0.0 0.0
Consumer Goods
Asian Paints New Idea 1,978 20,211.3 19,745.9 23,840.7 2,779.1 2,596.1 3,412.7 29.0 27.1 35.6 11% 68.3 73.1 55.6 19.2 22.1 24.1 27.6 12.0 0.6
Britannia 3,747 11,599.6 13,365.9 14,876.5 1,410.2 1,822.1 2,119.0 58.6 75.8 88.1 23% 63.9 49.5 42.5 36.4 35.5 36.2 32.9 50.0 1.3
Emami 369 2,840.8 2,926.2 3,365.6 596.4 633.1 765.2 13.1 14.0 16.9 13% 28.1 26.4 21.9 36.7 39.1 27.7 30.5 5.0 1.4
Godrej Consumer Products 672 9,910.8 10,530.6 11,639.4 1,462.0 1,639.1 1,921.1 14.3 16.0 18.8 15% 47.0 41.9 35.8 17.1 18.8 19.9 21.3 8.0 1.2
Hindustan Unilever 2,139 38,785.0 46,032.1 51,216.8 6,885.8 8,568.4 10,705.8 31.9 36.5 45.6 20% 67.1 58.7 46.9 39.7 28.5 30.2 21.5 26.0 1.2
ITC 192 46,807.3 46,841.9 53,339.4 15,170.4 14,088.2 16,399.4 12.4 11.5 13.4 4% 15.5 16.6 14.3 23.2 27.0 21.9 24.8 10.2 5.3
Jyothy Laboratories 141 1,711.2 1,848.0 2,091.3 159.4 187.4 232.2 4.3 5.1 6.3 21% 32.5 27.6 22.3 13.3 14.7 14.6 16.5 2.0 1.4
Marico 380 7,315.0 7,492.0 8,478.0 1,069.3 1,140.8 1,353.6 8.3 8.8 10.5 13% 45.8 42.9 36.2 41.8 43.5 34.6 34.1 3.8 1.0
New Ide
a
Tata Consumer Products Ltd 578 9,637.4 10,757.8 11,909.6 660.7 886.7 1,092.9 7.2 9.6 11.9 29% 80.7 60.1 48.8 8.8 10.0 7.3 8.1 2.7 0.5
Zydus Wellness 1,621 1,766.8 1,696.1 1,933.6 185.9 154.5 218.4 32.2 30.3 37.9 8% 50.3 53.5 42.8 5.8 6.9 4.4 6.0 5.0 0.3
IT / IT services
HCL Technologies 709 70,678.0 73,005.0 79,877.5 11,061.0 11,462.8 12,648.6 40.8 42.3 46.6 7% 17.4 16.8 15.2 23.1 23.1 21.2 21.1 8.0 1.1
Infosys 935 90,791.0 97,667.9 1,08,072.0 16,594.0 17,182.8 19,262.6 39.0 40.4 45.4 8% 24.0 23.1 20.6 33.8 38.4 26.1 28.8 17.5 1.9
New Ide
a
L&T Technology Services 1,580 5,619.1 5,394.6 6,049.6 818.6 719.5 891.0 77.7 68.2 84.4 4% 20.3 23.2 18.7 21.8 24.2 24.0 25.3 21.0 1.3
Persistent Systems 1,019 3,565.8 4,036.5 4,448.8 340.3 389.5 447.1 44.4 51.0 58.5 15% 23.0 20.0 17.4 20.7 21.6 15.6 16.5 12.0 1.2
Tata Consultancy Services 2,300 1,56,949.0 1,57,910.8 1,74,785.7 32,340.0 31,331.2 35,180.0 86.2 83.5 93.8 4% 26.7 27.5 24.5 40.6 46.4 37.4 43.0 73.0 3.2
New Ide
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Tech Mahindra 760 36,867.7 37,022.5 40,276.0 4,250.5 3,594.1 4,486.2 45.9 40.8 51.0 5% 16.6 18.6 14.9 16.6 19.0 15.7 17.8 15.0 2.0
Wipro 283 61,023.2 59,781.8 62,470.7 9,721.8 9,834.3 10,335.9 16.6 17.3 18.1 4% 17.0 16.4 15.6 15.6 15.5 16.2 15.6 1.0 0.4
Cap goods / Power
CESC 611 7,836.0 7,662.9 8,798.4 918.0 822.0 1,041.9 68.9 61.7 78.2 7% 8.9 9.9 7.8 6.9 8.4 8.0 9.6 20.0 3.3
Finolex cable 294 2,877.3 2,497.5 2,850.5 402.5 268.0 330.1 26.3 17.5 21.6 -9% 11.2 16.8 13.6 12.7 14.4 11.8 14.6 5.5 1.9
Greaves Cotton 81 1,911.0 1,759.0 2,032.0 122.6 91.3 126.6 5.4 4.0 5.5 1% 15.0 20.3 14.7 16.8 24.4 14.1 20.9 4.0 4.9
August 2020 54 Sharekhan ValueGuide

EQUITY FUNDAMENTALS EARNINGS GUIDE
CMP Sales Net profit EPS (%) EPS PE (x) RoCE (%) RoNW (%) DPS Div
Company
(Rs) FY20 FY21E FY22E FY20 FY21E FY22E FY20 FY21E FY22E growth FY20 FY21E FY22E FY21E FY22E FY21E FY22E Rs. Yld(%)
Kalpataru Power Transmission 254 7,904.0 8,416.1 9,377.1 463.0 453.1 549.1 30.0 29.3 37.2 11% 8.5 8.7 6.8 17.1 18.2 12.1 13.0 3.5 1.4
KEC International 325 11,965.4 12,344.6 13,318.6 565.5 539.6 620.5 22.0 21.0 24.1 5% 14.8 15.5 13.5 20.0 20.2 17.6 17.4 3.4 1.0
Thermax 790 5,731.3 5,188.4 5,847.8 212.5 250.1 351.6 18.9 22.2 31.2 29% 41.9 35.6 25.3 11.6 16.5 8.9 12.9 7.0 0.9
Triveni Turbine 74 817.9 723.8 825.4 121.8 103.5 123.3 3.8 3.2 3.8 1% 19.7 23.2 19.4 21.1 21.8 16.7 16.7 0.5 0.7
V-Guard Industries 169 2,482.0 2,520.8 2,823.3 185.2 174.9 220.6 4.3 4.1 5.2 9% 39.1 41.4 32.8 21.8 24.3 16.4 18.1 0.9 0.5
Infra / Real Estate
Larsen & Toubro 961 1,45,452.4 1,43,888.5 1,62,237.3 9,549.0 7,308.5 9,486.6 68.0 52.1 67.7 0% 14.1 18.4 14.2 6.5 7.5 10.6 12.7 18.0 1.9
Sadbhav Engineering 50 2,251.7 2,378.4 3,208.0 68.1 63.2 152.3 4.0 3.7 8.9 49% 12.6 13.5 5.6 4.7 7.1 3.0 6.9 1.0 2.0
Oil & gas

New Ide
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Mahanagar Gas 926 2,972.1 2,303.5 2,944.7 737.1 585.9 848.3 74.6 59.3 85.9 7% 12.4 15.6 10.8 23.6 30.7 18.9 24.4 35.0 3.8
Oil India Ltd 97 12,128.5 7,891.8 10,212.0 3,207.8 1,049.7 1,804.9 29.6 9.7 16.6 -25% 3.3 10.0 5.8 5.7 8.3 4.3 7.1 10.6 10.9
Petronet LNG 239 35,452.0 26,324.9 34,804.2 2,852.4 2,768.5 3,423.1 19.0 18.5 22.8 10% 12.6 13.0 10.5 24.2 28.5 24.7 29.1 12.6 5.3
Reliance Ind 2,112 5,96,743.0 5,26,950.4 6,21,195.7 44,324.0 45,715.0 63,302.1 74.9 77.2 93.6 12% 28.2 27.3 22.6 9.5 11.5 8.6 10.0 6.5 0.3
Pharmaceuticals
Aurobindo Pharma 826 23,098.0 25,050.9 27,328.5 2,913.2 3,289.0 3,571.0 49.7 56.1 61.0 11% 16.6 14.7 13.5 19.5 19.5 17.9 16.6 3.0 0.4
Cadila Healthcare 387 14,253.1 15,400.8 16,972.7 1,511.4 1,756.9 2,073.8 14.8 17.2 20.3 17% 26.2 22.5 19.1 11.9 13.2 15.1 15.8 3.5 0.9
Cipla 739 17,132.0 18,714.4 20,721.5 1,499.5 2,224.3 2,777.4 19.2 27.6 34.4 34% 38.5 26.8 21.5 15.4 17.2 13.3 14.5 4.0 0.5
Divi's Labs 3,278 5,394.4 6,603.5 8,181.5 1,294.5 1,813.3 2,365.6 48.8 68.3 89.1 35% 67.2 48.0 36.8 26.4 27.9 20.7 22.0 16.0 0.5
IPCA Lab 2,015 4,648.7 5,473.1 6,451.9 603.6 953.7 1,192.4 47.8 75.6 94.5 41% 42.1 26.7 21.3 24.6 25.3 23.4 23.2 5.0 0.2
Lupin 962 15,374.8 16,143.4 17,834.4 352.6 1,271.6 1,634.8 7.8 28.1 36.1 115% 123.3 34.2 26.6 10.1 12.0 9.2 10.6 6.0 0.6
Sun Pharmaceutical Industries 523 32,837.5 36,162.7 39,234.8 4,025.6 5,182.3 6,254.7 16.8 21.6 26.1 25% 31.1 24.2 20.0 12.0 12.2 11.2 12.0 4.0 0.8
Torrent Pharma 2,798 7,780.0 8,517.7 9,858.7 1,025.0 1,273.6 1,645.6 60.3 74.9 96.8 27% 46.4 37.4 28.9 17.5 20.6 23.5 24.3 32.0 1.1
Building Materials
Grasim 726 18,609.4 16,624.2 19,533.1 1,266.7 397.7 1,115.2 19.3 6.0 17.0 -6% 37.7 120.0 42.8 0.9 2.5 1.0 2.8 4.0 0.6
New Ide
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JK Lakshmi Cement 270 4,043.5 3,514.8 3,908.1 235.2 185.8 227.1 22.6 15.8 19.3 -7% 12.0 17.1 14.0 9.8 10.6 10.3 11.4 2.5 0.9
New Ide
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Pidilite Industries 1,449 7,294.5 6,676.7 8,204.2 1,177.2 1,031.7 1,376.1 23.2 20.3 27.1 8% 62.5 71.3 53.5 18.4 20.8 21.5 24.5 2.3 0.2
Shree Cement 20,446 11,904.0 11,149.0 12,901.3 1,570.2 1,159.7 1,636.1 435.2 321.4 453.4 2% 47.0 63.6 45.1 8.7 10.9 8.7 11.3 110.0 0.5
The Ramco Cements 719 5,368.4 5,393.7 6,327.3 601.1 608.0 778.5 25.5 25.8 33.0 14% 28.2 27.9 21.8 7.4 8.6 11.7 13.4 2.5 0.3
UltraTech Cement 3,950 40,649.2 37,493.0 43,288.6 3,652.2 3,331.1 4,331.3 126.5 115.4 150.1 9% 31.2 34.2 26.3 7.7 8.9 8.4 10.0 13.0 0.3
Discretionary
Arvind* 35 7,369.0 5,797.0 7,535.0 128.1 26.0 152.0 4.9 1.0 5.9 10% 7.1 34.6 5.9 3.6 6.1 1.0 5.5 0.0 0.0
Century Plyboards (India) 161 2,317.0 1,831.9 2,094.8 208.8 135.4 181.9 9.4 6.1 8.2 -7% 17.1 26.4 19.6 9.9 12.2 9.6 12.3 1.0 0.6
Info Edge (India) 3,433 1,272.7 1,162.4 1,566.9 328.9 343.5 504.2 26.7 26.7 39.2 21% 128.4 128.5 87.5 17.0 21.5 12.8 16.3 6.0 0.2
Inox Leisure 296 1,897.0 744.0 1,985.0 84.0 (150.7) 172.0 8.5 -15.3 17.5 43% 34.9 - 16.9 - 10.7 - 26.7 1.0 0.3
Relaxo Footwear # 650 2,410.5 2,413.5 2,948.2 226.3 229.4 327.6 9.1 9.2 13.2 20% 71.3 70.3 49.3 23.2 28.8 16.8 20.6 1.3 0.2
Titan Company Limited 1,186 21,051.5 18,207.1 24,776.0 1,519.2 988.3 2,001.9 17.0 11.1 22.5 15% 69.7 106.5 52.6 16.5 29.3 14.1 24.8 4.0 0.3
Wonderla Holidays 187 270.9 41.7 216.1 45.9 (73.7) 22.3 8.1 -13.0 3.9 -30% 23.0 - 47.3 - 3.8 - 2.9 1.8 1.0
Diversified / Miscellaneous
Bajaj Holdings 2,648 - - - - - - - - - - - - - - - - - 32.5 1.4
Bharat Electronics 108 12,968.0 13,438.0 14,614.0 1,824.0 1,691.0 1,818.0 7.5 6.9 7.5 0% 14.5 15.7 14.5 14.3 13.9 16.1 15.9 1.4 1.3
Bharti Airtel 538 87,539.0 1,00,876.9 1,12,864.2 (3,630.4) 2,663.1 7,257.3 -7.0 4.9 13.3 - - 110.2 40.4 8.5 10.7 3.2 8.2 2.5 0.5
New Ide
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Coromandel International 767 13,137.0 14,877.0 16,179.0 1,065.0 1,271.0 1,470.0 36.3 43.4 50.2 18% 21.1 17.7 15.3 27.3 26.8 26.8 25.8 12.0 1.6
Gateway Distriparks 100 1,237.2 1,170.0 1,247.6 50.7 48.9 53.9 4.7 4.5 5.0 3% 21.5 22.2 20.2 7.0 7.3 3.7 4.1 4.5 4.5
PI Industries 1,885 3,367.0 4,253.0 5,257.0 455.0 657.0 827.0 33.1 43.5 54.7 28% 56.9 43.3 34.5 19.3 17.8 16.9 14.9 4.0 0.2
Ratnamani Metals and Tubes 1,184 2,583.0 2,264.0 2,861.0 308.0 250.0 322.0 65.8 53.4 69.0 2% 18.0 22.2 17.2 14.5 17.4 13.7 15.6 12.0 1.0
Supreme Industries limited 1,347 5,512.0 5,036.0 6,297.0 405.0 342.0 497.0 31.9 26.9 39.1 11% 42.2 50.1 34.5 17.6 22.6 13.0 16.8 14.0 1.0
UPL 522 35,756.0 38,438.0 42,281.0 2,399.0 2,865.0 3,457.0 31.4 37.5 45.2 20% 16.6 13.9 11.5 10.2 12.4 16.5 19.1 6.0 1.1
Note: Grasim- Changed reporting to standalone financial numbers New Idea- We have converted the existing Viewpoint under our active coverage into a Stock Idea

Remarks
Automobiles
Apollo Tyres (ATL) • Apollo Tyres’ domestic replacement demand has witnessed sharp recovery reporting a 10% y-o-y
growth in June 2020 and a 7-8% y-o-y growth in July 2020. As per management the recovery in
replacement demand exceeds expectations. European operations (primarily replacement) are also
reviving with demand expected to reach 90% of pre-COVID normal in Q2FY21. Moreover, ATL is gaining
market share in replacement in both geographies, driven by new launches and a wider distribution
reach. Moreover, the government’s move to restrict tyre imports would help domestic tyre players
such as Apollo gain market share. With better product mix, cost control measures and restructuring
in European operations, we expect margins to improve and expect a strong 39% earnings CAGR over
FY2020-22. Valuations are lower than long-term historical average multiples. Hence, we retain a Buy
recommendation on the stock.
Ashok Leyland • With the government opening up the economy under unlocking measures, Ashok Leyland Ltd (ALL)
is witnessing uptick in the MHCV demand. ALL expects demand to improve month-over-month with
the company reaching 30-35% capacity utilisation in MHCV space. The company is further ramping
up capacity in view of increased demand. With the export markets also opening up, company would
focus on increasing exports. Also, LCV segment is witnessing faster recovery given its linkage to rural
and FMCG sectors where sentiments have been strong. The company is approaching full capacity
utilisation in LCV space and plans to introduce “Phoenix” range of trucks in next two months. We
expect MHCV upcycle to resume in FY22 as economic activity normalises and pent-up demand
emerges, after two consecutive years (FY20 and FY21) of a downcycle. Hence, we upgrade our
recommendation on the stock to Buy from Hold.
Bajaj Auto • Bajaj Auto is the second-largest domestic motorcycle manufacturer and largest exporter of
motorcycles from India. Bajaj Auto is witnessing a fast recovery in both the domestic as well as
overseas markets. Driven by strong rural sentiments and filling of channel inventory ahead of festive
season, domestic markets motorcycles reported marginal growth on yoy basis in August 2020. The
opening up of economies overseas and stable crude oil prices have led to export markets reaching
almost similar levels on yoy basis in August 2020. Bajaj’s management has stated that recovery in
demand has been better than expectations and is ramping up capacity further to meet demand. The
company has a strong balance sheet and healthy cash balance. Valuation multiples are lower than
long-term historical average. We retain our Buy recommendation on the stock.
Hero MotoCorp • Hero MotoCorp (Hero) is the market leader in the domestic two-wheeler industry. The company
volumes improved on yoy basis in August 2020 driven by a healthy retail offtake in rural and semi
urban areas due to positive farm sentiments on account of higher kharif sowing and good monsoon
so far. Moreover, dealer channel filling with onset of festive season led to growth in volumes. Hero
expects sales to continue upward trend with festive season, consumer confidence to drive sales.
Moreover, Hero’s focus on premiumisation of its products and enhancing of exports would drive
demand going ahead. Hero is a debt-free company with strong reserves. Valuations are lower than
long-term historical averages. Hence, we retain our Buy rating on the stock.
M&M • Mahindra & Mahindra is the market leader in tractors and light commercial vehicles with market share
of about 40%. It is also India’s leading sports utility vehicle manufacturer with market share of about
20%. Due to strong farm sentiments, M&M expects tractor demand to remain robust and expects the
industry to grow in FY2021. Moreover, M&M is likely to gain market share in tractors due to a better
outlook in regions, where it has a higher market share. M&M’s automotive segment is also recovering
due to robust rural sentiments, increased preference for personal transport and dealer inventory
filling with the onset of the festive season. In August 2020, utility vehicle and light commercial vehicles
witnessed marginal growth y-o-y. Tighter capital allocation strategy of nil fund infusion in businesses
with an unclear path to profitability will continue and M&M is evaluating performance of its other
international subsidiaries (recently M&M has decided against additional fund infusion in Ssangyong
and Genze). With a good outlook for core business and a prudent capital allocation policy, M&M’s
multiples are likely to get re-rated. Hence, we retain our Buy rating on the stock.

Maruti Suzuki • Maruti Suzuki India Limited (MSIL) is India’s largest passenger vehicle (PV) manufacturer with the
company holding a strong 51% market share. Maruti is witnessing strong pick-up in demand with
August 2020 sales reporting double-digit growth on yoy basis. Apart from pick-up in rural areas due
to strong farm sentiments, urban areas are also witnessing surge in demand, driven by increased
preference for personal transportation to ensure social distancing. Also, inventory channel filling
ahead f festive season boosted demand in August 2020. Maruti has stated that festive demand
outlook is good. Moreover, demand shift towards entry-level cars is likely to benefit Maruti, which has
a stronghold in the segment. Hence, we retain our Buy recommendation on the stock.
TVS Motor • TVS Motor (TVSM) is India’s fourth largest two-wheeler manufacturer present in the scooters segment.
On the demand front, TVSM is witnessing recovery in both domestic (due to strong rural sentiments)
and exports (due to opening of economies and steady oil prices). In August 2020, TVSM 2W sales
reached levels witnessed in August 2019.Festive season is likely to witness further pick up in volumes.
Cost-control initiatives coupled with a pickup in volumes would drive margin improvement for TVSM.
We expect TVSM to deliver strong 17% earnings CAGR over FY20-22. Valuations are below the long-
term historical average. Hence, we retain our Buy recommendation on the stock.
Banks & Financials
Axis Bank • Axis Bank is the third-largest private sector bank, with a well-diversified loan book with strengths
in both retail and corporate segments. The bank’s liability profile has improved, which would help
keep margins healthy. Business restructuring along the lines of incremental lending to higher-rated
corporate segment, focus on quality retail and mid-market groups are steps in the right direction,
which will augment sustainability and profitability. However, in the medium term, COVID-19 poses
challenges to credit growth and asset quality of the banking sector. We expect banks with strong
balance sheets and capital position better placed to recover once the business environment
normalises. Going forward, the bank’s strategic investment in the insurance space will further add
strategic value. The bank has a strong market position across most digital payment products.
Bajaj Finance • Bajaj Finance, a subsidiary of Bajaj Finserv, is a leading NBFC with well-diversified and strong asset
quality. The company has its assets spread across products, viz. loans for consumer durables, two-
wheelers, and three-wheelers, loans to small and medium enterprises (SMEs), mortgage loans and
commercial loans. The company’s strong loan growth, asset quality, and provisioning set Bajaj
Finance’s performance among the best in the system. However, in the medium term, COVID-19 poses
challenges to credit growth and asset quality of NBFCs. We expect NBFCs with strong balance sheets
and capital position likely to recover faster, once the business environment normalises.
Bajaj Finserv • Bajaj Finserv is a financial conglomerate with subsidiaries in the financing, life insurance, and
general insurance segments. We expect its subsidiary, Bajaj Finance Limited (BFL), to continue with
calibrated growth and sustainable profitability and margins (for the long term), which will be the key
support for present valuations of Bajaj Finserv. Bajaj Allianz General Insurance Company (BAGIC) is
expected to continue its healthy operating metrics and profitability going ahead. BALIC is focusing
well on strengthening its distribution channel and protection business, but profitability will depend
on the pace and segment of new business growth. The COVID-19-led lockdown is expected to put
the economy under severe financial strain and the resultant ratings downgrades are likely to put
pressure on corporate bond valuations as well. Insurers would be sensitive to bond downgrades;
and if market volatility persists, investment portfolios and investment earnings may be impacted as
well. However, given the strong balance sheet of its subsidiaries, companies like Bajaj Finserv are
expected to tide over medium-term challenges.
Bank of Baroda • Bank of Baroda has over 9,400 branches across India and abroad along with a diversified products
and services portfolio and strong client relationships. Business growth as well as profitability and
asset-quality improvement is gradual but in the desired direction. Two other PSU banks have been
merged with Bank of Baroda, which will add to its business reach and strength. Notwithstanding the
synergies that will accrue over the long run, we believe near-term challenges in terms of asset quality
and integration issues of the merged entity may mute medium-term performance. Moreover, in the
medium term, COVID-19 impact poses challenges for credit growth and asset quality of the banking
sector, including Bank of Baroda.

Bank of India • Bank of India (BOI), established in 1906, is one of the largest PSU banks in the country. The Mumbai-
based bank has a strong presence in Western and Eastern regions. The bank has over 5,100 branches
and 5,800 ATMs across India. The government holds a ~89% stake in the bank. Operating performance
and earnings have been affected by a sharp rise in non-performing assets (NPAs). However, going
forward, credit traction is expected to start over time as the bank has exited the prompt corrective
action (PCA) framework. However, in the medium term, the COVID-19 impact poses challenges for the
credit growth and asset quality of the banking sector, including Bank of India. As several segments
are undergoing stress and weak credit demand, we expect credit growth and margins for BOI to likely
be muted for the medium term.
Federal Bank • Federal Bank is among the better-performing old private-sector banks in India with a strong presence
in South India, especially Kerala. We believe the bank’s growth is in the desirable direction and the
accompanying vectors indicate sustainability and quality of the bank. We believe incremental loans
to better-rated borrowers, fewer additions to the stressed asset pool, and high provision coverage are
positives, but asset-quality performance will continue to be a key monitorable for the medium term as
COVID-19 will pose challenges for credit growth and asset quality of the banking sector, and sectors
such as MSME and unsecured loans, among others, are likely to be vulnerable.
HDFC • HDFC Limited is among the top-performing housing finance companies in the country having deep
roots in the retail segment. Despite general slowdown in credit growth, HDFC continues to report
strong growth in advances with stable margins. Aided by a strong business franchise, best-in-class
credit ratings and impeccable asset quality, HDFC is a safe long-term bet with a scope for value
creation led by steady business growth. However, in the medium term, COVID-19 poses challenges
for the credit growth and asset quality of the financial sector, including HDFC. We expect NBFCs
with a strong balance sheet and capital position likely to recover faster, once business environment
normalises.
HDFC Bank • HDFC Bank is among India’s top-ranking lenders with a strong hold in the retail segment. Despite
the general slowdown in credit growth, the bank continued to report better than industry growth in
advances (mainly from retail products) and a strong retail liability base. Higher margins as compared
to peers, a strong branch network, and better asset quality make HDFC Bank a safe bet with scope for
expansion in valuation multiples. The COVID-19 poses challenges for credit growth and asset quality
of the banking sector in the medium term, including the bank. We expect banks with strong balance
sheets and capital position to recover faster once the business environment normalises.
ICICI Bank • ICICI Bank is one India’s top three-largest private sector bank with over 5,200 branches. The bank has
made inroads into the retail loan segment and has also significantly improved its liability franchise.
We believe that its strong capital adequacy and a wide branch network will help support business
growth in the long run. The bank appears to be well-positioned to benefit from reduction in competitive
intensity from NBFCs and other banks, which face challenges of their own. However, in the medium
term, COVID-19 poses challenges to credit growth and asset quality of the banking sector, including
ICICI Bank. We expect banks with strong balance sheet and capital position better placed to recover
once business environment normalises.
LIC Housing • LIC Housing Finance is one of the largest mortgage financiers in India and is promoted by Life
Insurance Corporation of India. With over 282 marketing offices, the company has one of the strongest
distribution networks to support business expansion. Though falling interest rates and a strong parent
bode well for NBFCs, we believe increasing competitive pressures may keep NIM range bound in
the near to medium term. Uncertainties in the builder loan segment and weak economic conditions
warrant caution due to asset-quality concerns. Recoveries in retail and developer book and loan
growth momentum in the next few quarters would be key monitorables. In the medium term, COVID-19
poses challenges for the credit growth and asset quality of the financial sector, including LIC Housing.
We expect NBFCs with a strong balance sheet and capital position likely to recover faster, once the
business environment normalises.

Max Financial Services • Max Life Insurance is owned by Max Financial Services (MFS) and is among the leading private sector
insurers that has gained critical mass and enjoys the best operating parameters in the industry. MFS
is effectively building an attractive insurance franchise characterised by a multi-channel distribution
network built upon a conservatively underwritten insurance business. The deal with Axis Bank will
provide clarity to the bancassurance relationship and is long-term positive for MFS. Management
has reiterated its strategy to achieve a balanced product mix and focus on non-par savings with the
protection segment, which will be margin-accretive. COVID-19-led lockdown is expected to put the
economy under severe financial strain and the resultant rating downgrades are likely to put pressure
on corporate bond valuations as well. Insurance companies would be sensitive to bond downgrades,
and if market volatility persists, investment portfolios and investment earnings too may be impacted
as well.
PNB • Punjab National Bank (PNB) has a strong liability mix in the banking space, with low-cost deposits
constituting over 40% of its total deposits. PNB has done a significant amount of business and
process enhancement/upgradation to mitigate operational and credit risks after the fraud, but so
far the asset-quality improvement has been subdued. Further development in resolution/recovery
of NCLT exposures as well stress in the SME segment warrant a cautious approach. Risks of chunky
slippages/haircuts are present in the near term. Moreover, in the medium term, COVID-19 impact
poses challenges for credit growth and asset quality of the banking sector, including the bank, and
will be a key monitorable.
SBI • State Bank of India (SBI) is India’s largest bank. The successful merger of associate banks and value
unlocking from the insurance business could provide further upside. While the bank is favourably
placed in terms of liability base and operating profit is better than peers, asset quality is also
improving aided by strong resolution/recoveries. SBI’s strong balance sheet coupled with an enviable
reach and business strength make it a strong business franchise, which is well-placed to gain market
share as well as quality clients in the medium to long term. However, in the medium term, COVID-19
poses challenges for the credit growth and asset quality of the banking sector, including the bank.
SBI’s status as the market maker in terms of domestic interest rates places it at an advantage to other
PSU bank peers, providing a cushion to margins.
Consumer Goods
Asian Paints • Asian Paints Limited (APL) is a market leader in domestic paint industry with a 55% market share.
Unlike peers, the company has de-risked its business model, deriving more than 85% of revenue
coming from domestic decorative paints. The company has a strong portfolio of brands straddling the
pyramid. APL's Q1FY2021 performance was affected by lockdowns but strong pick-up in demand was
seen for decorative paints from June. If the Coronavirus scare recedes significantly, H2FY2021 will be
much better than H1. Considering the strong traction for its products, the waterproofing segment can
be a revenue contributor in the near to medium term. FY2021 will be affected by COVID-19 as social
distancing will defer painting activities. However, a higher willingness to spend on home improvement
and an increase in demand from infrastructure/construction projects will drive a strong recovery in
FY2022. A sharp fall in crude oil prices led to a significant decline in key crude-linked input prices,
which will help operating margins (OPM) to remain stable in FY2021 and expand in FY2022. APL’s
leadership position in domestic paints industry and better earnings visibility justifies the premium
valuation. We maintain our Buy recommendation on the stock.
Britannia • Britannia is one of the largest domestic biscuit and snacking companies (it gained top position in
the domestic biscuit market, beating Parle) with a turnover of over Rs. 11,000 crore. Under the new
leadership, the company has been able to leverage and monetise its strong brand and premium
positioning in the biscuits and snacks segments. The company clocked strong numbers in Q1FY2021
with revenues growing by 26.5% y-o-y and higher OPM at 21%. The company expects strong growth
momentum to sustain in the coming quarters with higher demand from in-house consumption,
improvement in supply in key markets, market share gains from small players and strong recovery in
rural demand. Correction in raw-material prices would help post better margins. Sustained innovation
in the product portfolio, expanding distribution reach, entry into newer categories, and focus on cost
efficiency will help the company maintain steady earnings growth in the medium term

Emami • Emami is one of the largest players in the domestic FMCG market with a strong presence in
underpenetrated categories such as cooling oil, antiseptic creams, balm, and men’s fairness creams.
Emami's Q1FY2021 earnings performance was better than ours expectation with revenue and PAT
declining by ~26% and ~6.5%, respectively. June saw a recovery with revenue bouncing back to 6%
and double-digit growth was witnessed in July. Management expects growth in terms of revenue
largely driven by strong demand in the health & hygiene portfolio, new launches and a recovery in
rural markets. Benign input prices, reduction in advertisement cost, and stringent management of
other cost elements would help the company post better margins in the coming quarters. The group’s
exit from non-core businesses has helped promoters to reduce pledged share significantly from 95%
to 55% currently. In view of reducing headwinds and favourable risk-reward ratio, we have upgraded
the stock to Buy from Hold.
GCPL • Godrej Consumer Products Limited (GCPL) is a major player in the personal wash, hair colour, and
household insecticide market segments in India. The company clocked resilient performance in
Q1FY2021 with flat revenue, largely driven by 5% growth in India and Indonesia each while OPM
expanded by 77 bps to 20.3%. In India, HI and hygiene products registered strong growth of 27%
and 15%, respectively, led by strong demand. The management expects HI segment to keep growing
strongly in coming quarters as new products gain good traction and competitive intensity from illegal
incense sticks eases in the current environment. Higher demand for health and hygiene-related
products will augur well for the company as ~85% of GCPL’s portfolio consists of essentials/value-for-
money products. Thus, India business is expected to get back on the growth trajectory in H2FY2021.
HUL • Hindustan Unilever Limited (HUL) is India’s largest fast-moving consumer goods (FMCG) company.
Q1FY2021 overall performance was better than our as well street expectation with revenue and
adjusted PAT growth of ~4% and ~8%, respectively. With half of the portfolio catering to essential
categories, the strong direct distribution reach and new product launches (especially in the hygiene
space) would help HUL see faster recovery post normalisation of the business environment. Though
the current business environment remains uncertain, the management is confident that 80% of
business (largely essentials) will continue to perform well. Recovery in rural demand, strong demand
for hygiene and nutritional products and market share gains in key categories will be key revenue
drivers in the near term. Synergistic benefits from GSK Consumer’s merger and cost rationalisation
measures will help OPM to remain high in FY2021. HUL remains one of our top picks in the FMCG
space.
ITC • ITC’s Q1FY2021 performance was better than ours as well as the street’s expectation mainly on account
of a strong growth in essentials segment of the non-cigarette FMCG business and a strong recovery
in cigarette sales in June. Non-cigarette FMCG business will continue to deliver strong performance
with essential products gaining strong traction and expanded reach aiding the company for stable
supply of products. Cigarette business is recovering and sales volumes are expected to come back
on track in the coming quarters. The hotel business will remain an underperformer in FY2021 (likely to
see strong recovery in FY2022). ITC stock is trading at a stark discount to some of the large consumer
goods stocks. With a favourable risk-reward ratio, we maintain our Buy recommendation on the stock.
Jyothy Labs • Jyothy Laboratories Limited (JLL) is the market leader in the fabric whitener segment in India. JLL
is largely a consumer staples company with 45-50% of its revenue coming from essential products
such as detergents, dishwashing products, and personal wash items. JLL posted better performance
in Q1FY2021 with consolidated revenue and PAT growing by 2.5% and 25%, respectively driven by
strong growth in the HI segment. Driving sales through LUP, expanding reach (especially in rural
markets), and focus on gaining strong traction to new product launches are near-term growth drivers.
The HI and dishwashing segments will continue to deliver good growth, while the personal care
segment (consisting of Margo) will see recovery in Q2. Management is confident of maintaining OPM
at around 16%. In view of the long-term growth prospects and discounted valuations, we maintain our
Buy rating on the stock.

Marico • Marico is among India’s leading FMCG companies. Core brands such as Parachute and Saffola have
a strong foothold in the market. Q1FY2021 consolidated results are better than expectation with
revenue decline of ~11% and adjusted PAT growth of 4% driven by relatively better performance in
international markets and sharp 300 bps expansion in OPM. With most of Marico's products in non-
essential categories (except for edible oil), we expect recovery in performance will take some time.
Management is confident of achieving decent growth in the remaining fiscal. Benign copra prices and
conservative ad spends would help OPM to stay above 20% in the coming quarters. Though FY2021
is expected to be a disruptive year, Marico is focusing on delivering double-digit revenue growth
in the near to medium term by launching new products in health and hygiene categories, different
distribution model for urban markets, and increased direct distribution in rural markets. A strong
footing in the value-added hair oil segment and enhancing presence in less-penetrated categories
such as premium hair care and male grooming would help company to achieve good growth in the
long run.
Tata Consumer • Tata Consumer Products is one of the largest consumer goods company in India with strong presence
Products in branded tea, salt, water and other staples. The integration of Tata Chemicals’ consumer goods
will bring a lot of synergistic benefits such as a combined distribution network catering to more
than 200 million households, diversification into multiple product categories, robust innovation and
sustained revenue and cost synergies, which will help in driving sustainable growth in the long run.
Tata Consumer Products’ expanded product portfolio (post the merger of Tata Chemicals’ consumer
business), rising trend of in-house consumption in domestic and international markets and expanding
distribution reach aided the company to post strong operating performance in Q1FY2021. With strong
demand for branded products and higher salience of online ordering, we expect growth momentum
to sustain in the coming quarters. On the margin front, synergistic benefits derived from the merger
would aid in 150-200 bps expansion in OPM in the next two years despite increase in the domestic
tea prices. Integration of TCL’s consumer business with TCPL heightens sustainable revenue and PAT
growth visibility owing to multiple growth levers. We expect consolidated revenue and earnings to
clock a CAGR of 11% and 23% over FY2020-23E. We maintain our Buy recommendation on the stock.
Zydus Wellness • Zydus Wellness now has a product portfolio of brands such as EverYuth, Nutralite, and Sugar Free
along with Glucon D and Complan after the acquisition of Heinz India. Zydus Wellness has a strong
portfolio of leading brands, which are largely placed in low-penetrated categories. Zydus Wellness
registered decent numbers amid a tough environment, where supply disruptions caused by lockdown
led to a 13.4% and 14.6% decline in revenue and PAT, respectively. Though FY2021 will be affected
by COVID-19 pandemic, strong recovery is anticipated in FY2022. Though gross margins stumbled
in Q1FY2021, the management expects gross margins to improve in the coming quarters on account
of correction in key input prices. This will also help ZWL post better OPM in the coming quarters.
Stable working capital and strong cash generation ability would help ZWL in the current uncertain
environment. In view of discounted valuations to peers, a stable balance sheet, negative working
capital cycle, and a strong brand portfolio, we maintain our Buy rating on the stock
IT/IT services
HCL Tech • HCL Technologies has a leadership position in infrastructure management services (IMS) and
engineering and research and development (ERD) space. The management also highlighted that
COVID-19 related impact on demand stabilised after the initial effects of ramp-downs, volume
reduction and discounts to some customers in stressed sectors. Hence, the management provided its
guidance on revenue growth of 1.5-2.5% q-o-q for the remaining quarters of FY2021. This guidance
translates to -2.3% to -0.8% growth in FY2021. On margin front, management expects EBIT margin to
be in the range of 19.5-20.5% for FY2021 (EBIT margin was at 19.6% in FY2020). HCL Tech’s strength
in cloud infrastructure, and capabilities in automation and security services, would help the company
to drive clients’ digital transformation journey.
Infosys • Infosys is India’s premier IT and ITeS company that provides business consulting, technology,
engineering, and outsourcing services. The company expects its Pentagon agile digital service
architecture to help address clients’ digital requirements. Management resumed guidance with
annual revenue growth guidance of 0-2% in CC for FY2021E, translating 0.5-2% CQGR for the
remaining three quarters of FY2021E. The company expects positive growth in FY2021E because of
strong relationships with clients, traction for its digital offerings, higher localisation in the US, strong
deal wins especially in the BFSI vertical, and healthy deal pipeline. Even as reduction of IT spending
is expected during 2020, Infosys is well poised to gain share in a recessionary environment and
outperform peers in terms of revenue growth in FY2021E.

L&T Technology • L&T Technology Services (LTTS) is the third-largest engineering services provider (ESP) in India and is
Services well-diversified to capture the digital engineering spending across the verticals. Digital engineering
spend is expected to clock a 19% CAGR to $1.1 trillion by 2025, which would account for 53% of
overall ERD spends. Though implications of COVID-19 will be felt in certain verticals in the near
term, technologies facilitating in building the new normal for enterprises are expected to speed-up
adoption of digital engineering in the medium-to-long term. The management also remains optimistic
that it would report positive revenue growth q-o-q from Q2FY2021 on the back of strong deal wins,
robust deal pipeline and continued growth momentum in medical devices.
Persistent Systems • Persistent Systems Limited (PSL) has proven expertise and a strong presence in newer technologies,
strength to improve its IP base, and a decent margin profile, all of which set it apart from other mid-cap
IT companies. PSL is focusing on the development of Internet of Things (IoT) products and platforms,
as it sees a significant traction from industrial machinery, SmartCity, healthcare, and smart agriculture
verticals. Post the management change, the company’s has been delivering strong performance
especially in the technology services segment with new deal wins. Recent vendor consolidation
deal in BFSI vertical along with a large deal signings ($50 million over five years) in the emerging
vertical and continued growth momentum in technology services segment would help the company
to maintain its growth momentum in FY2022E. We expect margins to improve in coming quarters on
the back of lower travel expenses, normalcy of pricing discounts, reduction in subcontractor costs and
reduction in expenses of new engagement.
TCS • Tata Consultancy Services (TCS) is among the pioneers in the IT services outsourcing businesses in
India and is the largest IT services firm in the country. The management reiterated earlier expectations
of a recovery in revenue growth from Q2FY2021E as supply-side constrains evaporate and demand
surges for digital infrastructure solution and higher expenditure around core transformation. The
management indicated that TCS would benefit from three broad spending themes - (1) smart-secure
workplace and collaboration (higher demand for its SBWS model as customers are switching to
remote model) (2) customer experience (lot of investment on front-end transformation) and (3) core
transformation (need for operational resilience and agility within the enterprise). Management
believes it can match December 2019 quarter rupee revenues in December2020 quarter and flat CC
revenues on a y-o-y basis by March 2021.
Tech Mahindra • Tech Mahindra (Tech M) has successfully transformed itself from a telecom-focused player to a wide
portfolio of differentiated offerings in enterprise segment over the last decade. The company has
improved its positioning in the enterprise business on the back of a calibrated approach with respect
to acquisitions (in terms of size of deal, capabilities in digital area, vertical exposure, etc), better
go-to-market strategy and smart deal structuring with outcome-based approach. Though COVID-19
has impacted the network deployment, the demand from consumers and supply chain management
due to labour concerns, we believe that the fundamentals of the 5G business case remain largely
intact. Further, the rise of virtual workstation has created the huge demands on robust communication
networks, which has advanced the need for more robust 5G technologies and this would lead to
significant boost IT spends in telecom space.
Wipro • Wipro is among India’s top five IT companies in India. Wipro’s management restricted itself to
provide any guidance on growth recovery as demand environment remains fluid and velocity of
decision making is not at par with pre-COVID level. However, it indicated that TCVs of large deals
have improved on a y-o-y basis and the company has healthy deal pipelines. Mr. Delaporte (newly
appointed CEO) plans to get Wipro back on the path to industry growth without losing sight of
profitability. He highlighted that the near-term priorities are—(1) engage with leaders and be active
on day to day operations; (2) increase client connects to understand expectations from Wipro, (3)
reinforce employee engagement, (4) redefine and reinforce strategy, (5) streamline processes, focus
on top talent, make the organization more efficient.
Capital Goods/Power
CESC • CESC, an RP-Sanjiv Goenka Group company, is a fully-integrated power utility company. The company
has stable earnings contribution from standalone operations with regulated power generation and
distribution businesses getting assured RoE of 15.5% on generation assets and 16.5% for distribution
assets. Reducing loss at Dhariwal Infrastructure and Rajasthan distribution franchisee makes CESC
an attractive investment proposition. Although electricity demand is expected to get impacted in
FY2021E due to COVID-19 but regulated tariff model assures fixed RoE and, thus, provides earnings
visibility in uncertain times.

Finolex Cables • Finolex Cables, a leading manufacturer of power and communications cables, is set to benefit from
improving demand for cables, its core business. The company is leveraging its brand strength to build
a high-margin consumer product business. Finolex Cables reported better than expected numbers
during Q1FY2021 despite effectively operating for only about a month during the quarter. The company
operated on an average 40% capacity utilisation which has now crossed 50%. Its electric cables
division (~70% revenue share) is seeing healthy demand from housing wire and agriculture cables.
Demand for automobile cables picked from 10% to 30-40% of pre-COVID levels, while in telecom
cables saw demand for LAN and co-axial cables. The company expects demand for electric cables
to normalise going ahead as labour, transport and supply chain issues get resolved. Communication
cables (forming ~12% mix) is expected to be muted on account of funding issues from government
(BSNL/BBNL). New products (~2-3% mix) are performing well and would have surpassed Q4FY2020
run-rate in Q1FY2021 if COVID-19 issue was not there. Finolex will continue its Rs. 200 crore capex
plan at Urse and Goa over 18 months. Finolex has built a strong cash balance of Rs. 934 crore
(excluding investments) as on FY2020 end. Healthy operating cash flow generation, tight working
capital management (policy of advance payments from dealers) and limited capex are expected to
further build upon its cash reserves. Consequently, it may look at inorganic growth opportunities in
its allied business verticals. The company also has opportunity to increase market share organically
as the pandemic has had a severe impact on unorganised sector players. We have fine-tuned our
net earnings estimates for FY2021-FY2022E and introduced FY2023E earnings. Finolex is currently
trading at a PE of 11.5x its FY2023E earnings which is at a 10-20% discount to its peers. Considering
its improving growth outlook organically and opportunity for inorganic growth, we upgrade our rating
on the stock to Buy.
Greaves Cotton • Greaves Cotton Limited (GCL) is a mid-sized and well-diversified engineering company. Core
competencies of the company are in diesel/petrol engines, power gensets, agro engines, and pump
sets (engine segment).We expect demand to remain weak in near term due to decline in three-
wheeler segment on account of COVID-19. People are reluctant to use three-wheeler so as to ensure
social distancing in COVID-19 times. While non-automotive segment volumes are picking up, it is not
sufficient to offset decline in the automotive space. Negative operating leverage and inability to fully
pass on BS-VI cost increases due to weak demand would lead to a decline in margins. We retain our
Hold rating on the stock.
Kalpataru Power • Kalpataru Power Transmission Limited (KPTL) is a leading EPC player in the power transmission and
distribution space in India. Opportunities in this space are likely to grow significantly, thereby providing
healthy growth visibility, which remains the key monitorable in the wake of recent pandemic. Order
book remains healthy. Kalpataru Power Transmission Limited’s (KPTL) posted better-than-expected
Q1FY2021 results despite challenges. The management has maintained its guidance for 5-10%
standalone revenue growth for FY2021 with stable OPM at 10.5-11%. It also maintained its order inflow
guidance and it is expected to remain at the higher end of the guidance of Rs. 9,000-10,000-11,000
crore for FY2021, where orders are expected to come from T&D and the balance is expected from
railways and oil and gas segments. The company stated that site and labor productivity touched at
around 90% in KPTL and it expects situation to normalize by end of Q2FY21. Further KPTL remains
focused on cash flows with dedicated efforts on cost optimisation and prudent working capital
management in KPTL. We have fine-tuned our estimates for FY2021-FY2022, factoring in improving
execution due to improvement in operations at sites/factories and introduced FY2023 estimates in
this note. We maintain our Buy rating on the stock with a revised SOTP-based price target.
KEC • KEC International is a Global Power Transmission Infrastructure EPC major. The company is present
in the T&D, cables, railways, water, renewable (solar energy), and civil works verticals. Globally, the
company has powered infrastructure development in more than 61 countries. KEC is a leader in power
transmission EPC projects and has more than seven decades of experience. Over the years, it has
grown through the organic as well as inorganic route. The management refrained from giving any
guidance on order inflows, revenue, and margins for FY2021 due to uncertainty led by COVID-19.
Order book stood at Rs. 19,682 crore (up 3.5% y-o-y, 1.7x TTM consolidated revenue). The company
has L1 position for orders worth Rs. 4,818 crore (majorly international T&D). The pipeline for tenders
remains healthy in railways, international T&D, and civil segments. The company has been able
to better manage working capital owing to timely receipt of government payments and decline in
acceptances. Overall, the outlook for KEC’s business segments, viz. T&D international and non-T&D
comprising railways, civil, and other businesses remains favourable. Hence, we maintain Buy given
the healthy order backlog, order inflow visibility, and KEC’s ability to ramp-up execution.

Thermax • The energy and environment businesses of Thermax are direct beneficiaries of the continuous rise
in India Inc’s capex. Order inflow declined by 50% y-o-y with Q1 order intake at Rs. 608 crore (-50%
y-o-y, -36 % q-o-q). Lower execution during the same period helped in lower depletion of the exit
order backlog where in order backlog remained almost flat y-o-y at Rs. 5,212 crore (-0.7% y-o-y; 1x
TTM consolidated revenues). Weak international order inflows and limited visibility for big-ticket size
domestic orders provides lower order inflows visibility in FY2021 compared to FY2020, given the
current uncertainties. However, management expects better ordering in its chemical business; and
enquiries pipeline remains positive in food processing, chemical and pharma in domestic markets.
In projects, enquires witnessed from core sectors , primarily metals, cement and power generation
Management stated that all factories have started operating, which is currently at 75% utilisation levels
and availability of labors getting better compared to last quarter. We have tweaked our estimates for
FY2021-FY2022, factoring lower order booking and challenges pertaining to the uncertainties related
to execution and production. We retain our Hold rating with an unchanged price target.
Triveni Turbines • Triveni Turbines Limited (TTL) is a market leader in 0-30 MW steam turbine segment. TTL order
booking declined by 33% y-o-y, wherein exports order booking declined by 53% y-o-y and domestic
declined by 19% y-o-y. Total order book declined marginally (down 6.4% y-o-y). Order enquiry book
remains healthy in key sectors such as distillery, oil and gas, Biomass IPP, food processing, and
waste heat recovery, but fructification of the same remains key monitorables considering the given
uncertainties in the current environment. Management has largely maintained its earlier stance that
in the worst-case scenario, the company is likely to see a decline in revenue by 10% to 15% and
profit by 15% to 20% for FY2021. However, management expects better order inflow during H2FY2021
due to postponement of order finalisation expected along with healthy enquiry pipeline but expects
deliveries of orders more bunched up towards FY2022. We have tweaked our estimates for FY2021-
FY2022, factoring near-term uncertainties in terms of execution and order inflow. We maintain our
Hold rating on the stock.
V-Guard • V-Guard Industries is an established brand in the electrical and household goods space, particularly
in South India. Over the years, the company has successfully ramped up its operations and network
to become a multi-product company. Regionally, the company has witnessed good traction in the
southern markets (Karnataka and Kerala) but non- south markets saw larger impact due to extended
lockdowns where the impact has been higher in metros compared to non-metros. Inventory levels
in the channels have been lower than normal as lower stocking seen across the channels due to the
uncertainties and sporadic lockdown downs. For FY2021, the company’s focus will be on reducing
discretionary expenditure without affecting operations. We have revised our revenue estimate
downwards, factoring sporadic lockdown hampering sales and gradual improvement in the demand
environment for FY2021-FY2022 and revised OPM for FY2022 weighing the fixed cost. Currently,
the stock is trading at a P/E of 32x its FY2022E earnings, which is almost 26% discount to historical
(trailing five year) average one-year forward P/E multiple. We believe the company’s strong balance
sheet, cash flows and reputed brand along with robust business fundamentals will help it emerge
stronger from the near-term weak environment. Hence, we continue to maintain Buy on the stock.

Infrastructure/Real Estate
L&T • Larsen & Toubro (L&T), being the largest engineering and construction company in India, is a direct
beneficiary of the domestic infrastructure capex cycle. L&T remains at the forefront to reap benefits
from the recently-announced AtmaNirbhar Bharat scheme from the government of India with its
diversified businesses across sectors like defence, infrastructure (roads, railways, metros, DRC),
heavy engineering, IT (digitalisation). In the recent move from the Ministry of Defence, wherein
the import embargo was placed for 101 defence items will prove to be beneficial for L&T as it is
already manufacturing more than 50% of the items stated in the first negative list of 101 items.
The company have been focusing on the defence manufacturing and have also been ramping up
operations (invested ~Rs. 8,000 crore) in the space over the last few year. Further, the government's
announcement to create a domestic capital procurement budget of Rs. 52,000 crore with intention to
scale-up allocation at a 15% CAGR over the next five years augurs well for the company. Further, the
National Infrastructure Pipeline project formulated by the government is likely to lead to increased
spends in critical areas, L&T is poised to capitalise on these opportunities. The company’s more
than 95% of the sites being operational and gradual improvement seen in labour force is expected
to witness recovery in execution with improvement more evident from H2FY21. The focus remains on
improving productivity with new norms like social distancing at workforce in place; but the company
is well-placed to overcome the current challenges and expects normalisation in the second half of
FY2021. Order backlog remains diversified and healthy at ~Rs. 3,05,083crore (2.2x TTM revenue) in
Q1FY21. In the concluded quarter, the management indicated that the order pipeline stood at Rs. 6.5
lakh crore comprising Rs. 5.3 lakh crore of domestic orders and Rs. 1.2 lakh crore of international
orders. . We expect L&T to sail through a weak FY2021 as it is well-placed to ride current uncertainties
owing to multiple levers such as strong business model, diversified order book and healthy balance
sheet, while it refurbishes its order book and maintains the liquidity position to bounce-back in
FY2022. Consequently, the steep correction in L&T’s stock price provides a favourable risk-reward
ratio to investors (at a P/E of 17x/13x its FY2021E/FY2022E earnings). Hence, we maintain our Buy
rating on the stock
Sadbhav Engineering • SEL is engaged in 1) EPC business for transport, mining, and irrigation sectors and 2) development of
(SEL) roads and highways on BOT basis through SIPL. SEL has a healthy order book of Rs. 9,753 crore (4.3x
its FY2020 standalone revenue). The company has robust in-house integrated execution capabilities
with qualified human resource and owned equipment. We expect the company to gradually return
back to track with the execution of projects at advanced stage and reduction in leverage. Considering
attractive valuation and improving fundamentals, we have maintained our Buy rating on the stock.
Oil & Gas
Oil India • Oil India has several hydrocarbon discoveries across reserves in Rajasthan and the northeastern
regions of India. The company holds domestic 2P (proved and probable) reserves of 75 mmt for oil
and 132bcm for gas. Reserve-replacement ratio of the company is also healthy at 1.2x. However, the
recent sharp decline in oil prices given weak demand due to COVID-19 and weak domestic gas price
is a cause of concern for upstream PSUs. The company offers high dividend yield.
Petronet LNG • Petronet LNG is the largest LNG re-gasifier in India with 17.5 mmt LNG terminal at Dahej and 5 mmt
LNG terminal at Kochi. The company’s Dahej terminal enjoys a competitive edge compared to other
LNG import terminals given its low tariff and long-term contracted volumes with use or pay clause.
COVID-19 is expected to impact volumes temporarily; and Dahej terminal utilisation has already
recovered to 100% with expectation of high utilisation to sustain as gas robust demand outlook
supported by low LNG prices. Kochi terminal utilisation is also expected to improve with resolution
of pipeline connectivity issues in southern India. Petronet LNG would be the key beneficiary of rising
share of LNG in India’s overall gas consumption. The stock offers healthy dividend yield.
Reliance Industries • Reliance Industries is a diversified conglomerate with ~60% EBITDA contribution from the core
business of refining and petrochemicals and ~35% from consumer businesses (retail and digital
services). The long-term earnings growth outlook remains robust with potential improvement in the
financial of digital services business (likely ARPU hike, ramp-up of recently launched fibre broadband
services, and rollout of enterprise business and new commerce services) and continued strong growth
for the retail business (although near-term earnings to get impacted due to COVID-19) supported by
leveraging of the JioMart platform using WhatsApp. The company’s aim to increase the share of
EBITDA from the consumer business to 50% would play a crucial role to tide over margin volatility
in downstream margin due to COVID-19. RIL has a strong balance sheet as it has become virtually
net debt free with monetisation of stake in Jio Platforms, a rights issue, and a fuel retail JV with BP.
Potential listing of Jio and induction of strategic partners in retail business could further unlock value
from consumer-centric businesses and create long-term wealth for investors.

Mahanagar Gas • Mahanagar Gas (MGL) is a dominant CGD player in and around Mumbai with gas sales volumes
of 3 mmscmd in FY2020 with 73% volume is derived from CNG and 14% from domestic PNG. The
company’s long-term volume growth remains intact given low gas penetration (CNG at 34% and
domestic PNG at 38%), regulatory push for use of green fuels, and potential volume ramp-up at
Raigad geographical area. Moreover, weak gas prices would aid margin expansion MGL’s pricing
power in CNG and domestic PNG. MGL’s balance sheet is strong with nil debt and robust free cash
flow generation. The stock offers healthy dividend yield.
Pharmaceuticals
Aurobindo Pharma • Aurobindo derives around half of its revenue from the highly regulated US market, while Europe
accounts for almost a quarter of revenue.US revenues for the quarter grew strongly and management
expects the momentum to sustain backed by a strong new launch pipeline (Aurobindo has products
already approved) and stabilising price erosion. Aurobindo’s five plants are still under the USFDA
scrutiny. The company has submitted responses and is awaiting a revert from the regulator. The
Europe business is also expected to improve gradually and gain traction. Aurobindo reported a mixed
performance for Q1FY2021 with a healthy growth in US business, leading to better sales mix and a
reduction in net debt levels. Basis this we have revised upwards our earnings estimates for FY2021-
FY2022 and have also introduced FY2023 estimates in this note. Sales and PAT are expected to
grow by a 9% and 11% CAGR over FY2020-FY2022. Since the past three months, stock price has run-
up substantially thus leaving a limited upside. Further, new approvals are key drivers for sustained
growth, as the base business in the US is fairly large. Hence, timely and proper resolution of the
USFDA issues is critical. We maintain our Hold rating on the stock.
Cadila • Cadila is favourably progressing in its efforts to build an alternative growth platform (NCE, Biologics,
and Vaccines) that should start delivering over the long term and reduce the company’s dependence
on limited competition assets in the US for its earnings growth. With the relaxing of the lockdown in
India, doctors have commenced OPD consultations in select pockets. This would lead to a pick-up in
prescriptions and would help grow the India business. Albeit a meaningful revival in Indian business
remains a key monitorable. The US business on the other hand is well placed to grow backed by
new product launches. Further easing of pricing pressures in the US generics segment and a strong
product pipeline are likely to be the key drivers for the US business. Areas of vaccine and biosimilars
would be growth drivers, albeit in the next 3-4 years. The company has submitted its responses to
USFDA for clearance of the Moraiya plant. Revert from the regulator is awaited. We expect sales
and PAT to grow at a CAGR of 9% and 17% respectively over the next two years. We retain Hold
recommendation on the stock.
Cipla • Cipla is a global pharmaceutical company with a geographically diversified presence. The company
has a strong presence in the domestic formulations space. Management’s concentrated efforts to
structure businesses across geographies for a long-term sustainable growth augur well. The domestic
business, which accounts for 40% of sales, is set to be the key growth driver. In the US, a strong set
of product launches would fuel growth. The USFDA approval for generic Albuterol has strengthened
Cipla’s respiratory franchise in the US market, which provides ample growth visibility. Also the filling
of AdvairDuskus with the USFDA would further add to the respiratory franchise, though over the
next 18-24 months. Overall, management sees India business to lead growth, while the South African
business is expected to report healthy growth. Cipla reported strong results for Q1FY2021 lead by a
sturdy performance of the India business and cost optimization measures implemented, leading to
margin Expansion. Healthy topline growth, strong earnings visibility, and a healthy balance sheet
augur well and would support multiple expansions. We maintain our Buy recommendation on the
stock
Divis Labs • Divis is one of the leading players in the API space and is present in the CRAMS segment. Following
the supply disruptions in the API space, an array of opportunities has emerged. Companies like
Divis Laboratories are best positioned to capitalise on these opportunities. Amidst a strong demand
outlook, its expanded capacities are expected to come on stream, which will provide ample visibility
on the company’s capability to meet the increased demand. The full benefits of expanded capacities
are likely to be reflected from FY2022 onwards. Q1FY21 was a phenomenal quarter for Divis. The
company is expected to benefit from backward integration, capacity expansion and emerging
opportunities in the API space. Strong earnings visibility, sturdy balance sheet with almost a zero
debt and strong return ratios bode well and provides visibility on P/E multiple expansions. We retain
our Buy recommendation on the stock.

IPCA Lab • IPCA is one of the leading formulations and API player present across major markets around the
globe. IPCA is a leader in the anti-malarial space and has presence in other therapy areas as well.
Q1FY2021 was a phenomenal quarter for the company as both its segments – API and formulations
have clocked sturdy double-digit growth. The management sees the double digit growth trajectory to
sustain for FY2021 and has marginally revised its growth guidance upwards to 18-19% as compared to
14-17% earlier. Operating leverage and likely lower cost benefits, favorable mix could result in margin
expansion. IPCA is implementing de-bottlenecking exercise at its existing plants in the API segment,
to ease out capacity constraints. Over the long term, the commissioning of new facilities at Dewas
would aid revenue growth. Given the strong performance in Q1FY2021, we have revised our estimates
upwards for FY2021 /FY2022. IPCA’s sales and PAT are expected to clock a CAGR of 18% and 41%
respectively over FY2020-FY2022.IPCA has completed all the remediation process at its Pipariya
and Pithampur plants and is now working with the USFDA for a resolution. The clearance of both
these plants is critical from a growth perspective. We maintain Buy recommendation on the stock.
Lupin • Lupin is one of the leading pharmaceutical companies and is present in most markets globally. After
establishing itself as a major player in the generic space, the company is making efforts to improve
its presence in the specialty business. The US is a key market for Lupin. After two consecutive years
of subdued performance, the US business has reported mid-single-digit growth in FY2020. Lupin’s US
business is expected to gradually improve and gain traction, backed by ramp-up in existing products,
new launches, re-launch of Metformin, and stabilisation of the US base business. Moreover, resolution
of USFDA issues at its key plants is awaited. Successful closure of inspections and timely launch of
generic Albuterol with a revival in US business would be key points to watch for. The India business is
expected to grow at a healthy pace. The stock price has run up substantially in the recent past thus
leaving a limited upside. We retain Hold recommendation on the Stock.
Sun Pharma • Sun Pharma is confronting issues in the US relating to pricing erosion, which management believes
would sustain in the near to medium term. This coupled with slow pace of the US specialty business
and higher specialty promotional spends is likely to have its impact on the company’s performance.
Further, the US business is languishing on account of lack of new product launches. USFDA clearance
of Halol plant is yet to come. Domestic formulations business is likely to witness steady growth,
driven by chronic therapy demand. The company reported a healthy performance for the quarter.
Uncertainties persisting around the US business and India business (acute therapy) could impact the
growth prospects. Consequently, we hold back from taking a constructive view on the company and
retain our Hold recommendation
Torrent Pharma • Torrent is a leading pharma company present in emerging as well as developed markets. Torrent has
higher dependence on chronic therapies, which bodes well. The company derives 55-60% of its sales
collectively from India and Brazil markets. Torrent has outperformed the industry growth in both these
markets and looks to sustain traction backed by new launches, albeit over the medium to long term.
In its commentary, management mentioned of uncertainties due to COVID-19, albeit in the near term
only and expects normalisation post this. Torrent has guided for a gradual pick-up in sub-chronic and
acute therapies as doctors commence OPDs. During the quarter, performance across the US, Brazil,
and Germany regions was weak. In the US, growth is expected to be constrained due to price erosion
and absence of new launches. Torrent is awaiting a resolution from the USFDA for all its three plants.
Hold recommendation on the stock.
Building Materials
Grasim • Grasim has witnessed a steep rise in its stock price, led by increased market capitalisation of
UltraTech, Aditya Birla Capital, and Vodafone Idea. Grasim’s standalone business may take time due
to global and domestic disruption caused in user industries due to COVID-19 pandemic, which has
led to capacity expansion plans to be put on hold while focusing on maintaining liquidity. We have
factored revised market capitalisation for its financial and telecom entities, while Grasim’s SoTP value
comprises our price target of UltraTech. However, we maintain our Hold rating on the stock as little
clarity has emerged for its standalone business and telecom investment, while investors can directly
invest in UltraTech for the cement business.

Pidilite Industries • Pidilite is the market leader in adhesives and sealants, construction chemicals, hobby colours and
polymer emulsions industry in India. Its flagship brands - Fevicol and M-Seal have a market share
of ~70% each in the domestic market. With a slew of new launches under existing brands and entry
into consumer-centric categories, supported by adequate media activities, Pidilite has transitioned its
target market from industrial users to consumers through effective communication, which has helped
the company to register itself in customers’ minds. Though FY2021 is expected to be lull, affected by
COVID-19, growth is expected to come back on track in FY2022, driven by a recovery in refurbishment
of houses and construction activities (especially in rural markets and tier-III towns). Further, expected
increase in demand for adhesive products in global markets would add to overall revenues in FY2022
and FY2023. A fall in prices of key inputs, in line with the fall in crude oil prices will support margins.
A monopoly in the adhesives market, strong brand recognition and a sturdy balance sheet justify a
premium valuation. We maintain out Buy recommendation on the stock.
Shree Cement • Shree Cement is expected to be affected by lower demand on account of COVID-19 led disruption
since mid-March 2020. The company may have to delay its expansion plan to reach 60 mtpa from
40 mtpa currently due to stoppage of work led by COVID-19 pandemic. The funds raised through QIP
prior to COVID-19 pandemic should aid in better liquidity position and help in maintaining its long-
term expansion strategy. The company trades at a premium to its peers due to its higher operational
efficiencies and relatively low absolute free float. Considering its rich valuations, we have a Hold
rating on the stock with a PT of Rs. 23,453.
The Ramco Cements • The Ramco Cements, one of India’s most cost-efficient cement producers, will benefit from capacity
additions carried out ahead of its peers in the southern region. Ramco has embarked upon capital
expenditure plan of Rs. 3,430 crore to reach cement capacity of 20 million tonnes per annum (mtpa)
by 2020-end. The expansion aims to strengthen its reach in Andhra Pradesh, West Bengal, and North
Eastern states. However, the company may have to delay its expansion plan due to COVID-19 led
disruption in the industry, which is expected to lead to low demand during FY2021. The company’s
healthy balance sheet and its efficiency should aid in faster recovery in the growth path as normalcy
returns. Hence, we have a Buy rating on the stock.
UltraTech Cement • UltraTech Cement is India’s largest cement company. The COVID-19 led pandemic is expected to
affect cement demand in the near term due to stoppage of work at government infrastructure projects
and housing projects. However, as normalcy returns, we expect gradual pick-up of government
spending, while healthy pricing discipline in the industry along with lower key input costs should aid
in maintaining profitability going ahead. The company is better placed in reviving its growth trajectory
considering its leadership position and timely capacity expansion.
JK Lakshmi Cement • JKL had undertaken capacity expansion plans of 8.6 MT since FY2015, trebling its capacity to 13.3
MT by FY2020. Moreover, JKL has been able to reduce its standalone net debt to equity at 0.7x in
FY2020 from its peak of 1.5x in FY2015, which shows efficient capital management. The company has
a brownfield expansion potential to reach 20 MT in a short time. Now, it has two distinctive markets,
i.e. the East and North West regions. JKL is currently trading at attractive valuation considering a likely
earnings bounceback from FY2022 onwards. Hence, we have a Buy rating on the stock.
Discretionary Consumption
Arvind • Arvind demerged into three separate entities of Arvind (textile business), Arvind Fashion (branded
and retail business) and Anup Engineering (engineering business) with an aim to unlock value for
shareholders. Post the demerger, Arvind has become a textile hub present in segments such as
denim, fabric, garments, and advanced material (AMD). Q1FY2021 performance was impacted by
the lockdown in April. The denim segment has good recovery in performance with sales volumes
declining by just 10% in August with pick-up in demand in the domestic and exports markets. Revenue
of the denim and garmenting segments reached to 75-80% of pre-COVID level. The export market
is recovering faster than the domestic market with stronger brands posting 60-80% recovery. The
management expects full recovery in performance by Q4FY2021 with domestic B2C apparel retail
industry recovering from its low. Faster recovery in the export market, good growth in garment sales
volumes, and sustained growth in AMD business will help the company post good recovery in FY2022.
The company is expected to benefit from lower cotton prices, which will help gross margins to sustain
in the near to medium term. The recent correction in the stock has factored in near-term headwinds.
We maintain our Buy rating on the stock.

Century Plyboards • Century Plyboards is a leading player in the organised plywood industry with a market share of 25%.
The company also has laminate, particle board, and medium-density fibreboard (MDF) division having
capacity of 600 cubic metres per day. The company like other building material players is likely to
be affected by weak demand on account of country-wide lockdown led by COVID-19 pandemic. We
believe the company is among the few organised players to benefit from lower input costs and is
expected to recover at a faster pace once normalcy returns in the industry. Hence, we have a Buy
rating on the stock.
Info Edge (India) • Info Edge is India’s premier online classified company in the recruitment, matrimony, real estate,
education, and related service sectors. Naukri.com is a quality play and is directly related to GDP
growth and internet/mobile penetration. Overall billings during Q1FY2021 declined by 43.9% y-o-y
to Rs. 188.6 crore, owing to slowdown in hiring and softness in the real estate business in the wake
of COVID-19. This indicates revenue growth could be impacted in Q2 and Q3 of FY2021E. However,
improvement in billings rate in telecom, IT, and retail, which are major contributors to its billings in the
recruitment business and strong revival in traffic in its platforms would drive its billings going ahead.
We have modeled strong revival of revenue growth (34.8% y-o-y) in FY2022E, given the recovery in
economic activity, pent-up demand in new homes/resale, and increasing attrition rate. The investee
companies, particularly Zomato and PolicyBazaar, have been progressing well in their respective
businesses. We continue to derive comfort on Info Edge’s business strength, with leading market
share in key businesses.
Inox Leisure • Inox Leisure Limited (ILL), incorporated in 1999, is one of the largest multiplex operators in India. ILL
currently operates 147 properties (626 screens and over 1.44 lakh seats) located in 68 cities across
the country. The company accounts for 20% share of multiplex screens in India and ~11% share of
domestic box office collections. The ILL mega show is supported by improving content quality in
the Indian mainstream and regional cinema, with its movies regularly hitting the Rs. 100 crore or Rs.
200 crore box-office collection mark. A wash-out quarter as expected. However, cost management
remained robust amid shut-down of cinema; monthly cash burn was lowered by 25% to Rs 11 - 12
crores. FY2021 is going to be a wash-out years owing to extended lockdown restrictions, risk of box
office clashes in short window and subdued occupancy in 2HFY2021; modeled strong recovery in
FY2022E. The board has approved the enabling resolution for fund raising up to Rs 250 Cr through
the issuance of Equity Shares/other securities after the re-opening of cinema. We maintain our Hold
rating on stock owing to delay in return of normalcy.
Relaxo Footwear • Relaxo Footwear (Relaxo) is present in the fast-growing footwear category, where it caters to customers
with its four top-of-the-mind recall brands, such as Hawaii, Sparx, Flite, and Schoolmate. Relaxo’s
focus is on driving sales through distribution expansion (COCO and franchisee stores) and improving
the brand presence. GST implementation has been a silver lining for the company, as it is witnessing
a gradual shift of demand from the unorganised to organised market. The company is expected to
enhance its current capacity, which will add to revenue growth. Though FY2021 is expected to be
subdued, we expect a strong recovery in FY2022. We expect Relaxo to see early recovery post
normalisation of the lockdown because it will gain market share from unorganised players, of a
higher presence on e-commerce platform and higher demand for value-for-money products. Lower
per capita consumption in India, Relaxo’s lower penetration in the South Indian market and sustained
product additions remain the long-term growth catalysts. This makes Relaxo one of our preferred
picks in the discretionary consumption space.
Titan Company • Titan is India’s largest specialty retail player, operating more than 1,600 stores spread across over 2
million sq. ft. in 279 towns having businesses in jewellery, watches, and eyewear. Revenue of Titan’s
jewellery business reported a CAGR of 18% over FY2017-20. Sustained launch of new collections,
expansion in domestic footprint, shift of consumers to trusted brands, and strong growth in diamond
jewellery remain the key pillars of growth. The target is to achieve 2.5x sales and grab a 10% market
share by FY2023. In the eyewear business, Titan’s focus is to build a strong customer base through a
calibrated expansion plan and offer products at affordable prices. Titans jewellery business is likely
to fully recover by Q3FY2021. We expect FY2022 to post strong recovery due to pent-up demand
(mainly on account of postponement of weddings and likely higher sales during the festive season),
market share gains from small players, and recovery in the watches and eyewear businesses. An
increase in scale of the watches and eyewear businesses along with expansion into tier-II and tier-
III markets and continuous shift from non-branded to branded jewellery players would help Titan
achieve consistent double-digit revenue growth and gradual improvement in margin in the long run.
With a lean balance sheet and strong financial background, Titan is one of the best retail plays
among peers.

Wonderla Holidays • Wonderla Holidays Limited (WHL) is the largest amusement park company in India with over a
decade of successful and profitable operations. WHL’s Q1FY2021 numbers were affected due to non-
operation of core assets (amusement parks in Bangalore, Kochi and Hyderabad) as COVID-19 cases
soared in India. However, if the pandemic normalises, parks are expected to open up in H2FY2021 at
40-50% capacity. During non-operational phase WHL took few strategic initiatives such as opening
of ‘Wonder Kitchen’ at a low capital expenditure of Rs. 50 lakh, customer engagement through digital
platforms and focus on reducing costs. Management is confident of domestic tourism recovering
post normalisation of the situation and achieving higher footfalls in a stable economic environment
(expects Bengaluru park footfalls to reach 1.25 million p.a. in the next 2-3 years). The company has
acquired 61.87 acres of land for the new amusement park project in Chennai. The company has
liquid assets of Rs. 110 crore, which will take care of near-term uncertainties during non-operational
period. We expect FY2021 to remain sluggish for WHL, while a recovery might be seen in FY2022.
The sustenance of growth in footfalls has to be keenly monitored in the coming quarters. Hence, we
maintain our Hold recommendation on the stock.
Diversified/Miscellaneous
Bajaj Holdings • Bajaj Holdings & Investment Limited (BHIL, erstwhile Bajaj Auto) was demerged in December 2007,
whereby its manufacturing business was transferred to the new Bajaj Auto Limited and its strategic
business consisting of the wind farm and financial services businesses was vested with Bajaj FinServ
(BFS). All the businesses and properties, assets, investments and liabilities of erstwhile Bajaj Auto,
other than the manufacturing and strategic ones, now remain with BHIL. BHIL is a primary investment
company focusing on new business opportunities. Given the strategic nature of its investments
[namely BAL (Bajaj Auto Limited) and BFL (Bajaj Finserv Limited)], we have given a holding company
discount to its equity investments. Liquid investments have been valued at cost. We retain our Buy
recommendation on BHIL.
Bharat Electronics • Bharat Electronics Limited (BEL) is a defence PSU, with strong manufacturing and R&D capabilities,
good cost-control measures, growing indigenisation and a strong balance sheet with improving return
ratios. It manufactures electronics, communication and defence equipment and stands to benefit from
enhanced budgetary outlay for strengthening and modernising India’s security. Further, the company
is well positioned to capture incremental spends by the government on defence through the Make- in-
India initiative. Q1FY20 performance adversely impacted owing to lower execution led by COVID-19
led crisis resulting in revenue, EBITDA and PAT being lower by 21%/59%/75%y-o-y respectively.
Order intake increased by 72.2% y-o-y and 19.3% q-o-q to Rs 3,419 crore while order book remains
healthy at Rs. 53,752 crore (4.2xits FY2020 revenue), which provides sustainable revenue visibility. A
memorandum of understanding (MoU) with the Airport Authority of India to create opportunities in the
global civilian airport business. We reiterate our Buy rating on stock.
Bharti Airtel • Bharti Airtel (Bharti) is one of the leaders in the Indian mobile telephony space. Management continues
to focus sharply on increasing retail ARPUs, non-mobile services (enterprise services), and value-
added services (Airtel TV and music) to boost revenue and reduce the churn rate. Management has
guided for ARPUs to move to Rs. 200 in the short term and Rs. 300 in the medium term. Besides tariff
hikes, ARPU increase will be driven by increase in share of 4G subscribers, segmentation price hike
for premium users, and higher digitisation (bundling of multiple services like home broadband, DTH
and mobility). Supreme Court recently directed telcos to pay 10% of AGR dues upfront by March 2021
and the balance over 10 years starting FY2022, which provided some breathing space to telecom
players. We expect another round increase in ARPU in the near term to support its cashflows. From a
long-term perspective, explosive growth in the data segment, rapid network expansion, and reach will
help Bharti emerge stronger. We have a Buy rating on the stock.
Coromandel • We like Coromandel International owing to its leadership position in key businesses led by high
International backward integration through joint ventures for sourcing of key raw materials and strong distribution
reach. The company delivers strong Q1 performance with revenue, EBITDA and PAT rising by 51%,
111% and 4x y-o-y, respectively. The company to speed up investments in high-growth crop protection
business which is expected to enhance profitability. Encouraging progress of monsoon and MSP hike
for kharif crop bodes well for a healthy demand off-take of its products. We believe Coromandel
would clock revenue & earnings CAGR of 11.0% & 17.5% over FY2020-22E, led by increase share of
non-subsidy business. We maintain our Buy rating on stock.

GDL • With its dominant presence in container freight station (CFS) and rail freight businesses, Gateway
Distriparks Limited (GDL) has evolved as an integrated logistics player. The company’s CFS and rail
verticals are expected to face a tough business environment on account of both global and domestic
trade disruption caused by COVID-19 led pandemic. However, once normalcy returns along with
commencement of dedicated freight corridor (DFC), the demand environment is expected to improve.
Additionally due to comfort on valuation, we have a Buy rating on the stock.
PI Industries • Incorporated in 1947, PI Industries focuses on developing complex chemistry solutions in the agri-
science space. Company delivered strong performance during Q1FY21 in challenging times with
revenue, EBITDA and PAT rising by 41%, 50%, and 43%, respectively. Demand environment remains
encouraging in both domestic (normal monsoon) and export markets (order book of $ 1.5 billion),
guidance for over 20% growth in each; capex guidance of Rs. 550-600 crore remains for FY2021E.
Funds raised via QIP to be deployed in 5-6 quarters and meet inorganic growth aspirations, which
will aid diversification as well. Moreover, opportunities in the export market are expected to increase
multifold as global MNCs and innovators would consider Indian players as their preferred partners
over China. We reiterate Buy rating on the stock.
Ratnamani Metals • Ratnamani Metals and Tubes Limited (RMTL) is the largest stainless steel tube and pipe manufacturer
in India. Q1 numbers were mixed numbers as revenues beat expectations at Rs. 578 crore, while OPM
at 12.7% and PAT at Rs 50 crore lagged expectations. Management has guided revenue of Rs. 2,000
crore – Rs. 2,400 crore (implying a revenue decline of 7-23%. owing to slowdown in order inflows
and delay in commissioning of additional capacity) and margin in the range of 16-18% in FY2021E.
Though FY2021E would be weak, we expect revenue growth to recover sharply in FY2022E led by
pent-up demand, pick-up in order inflows and higher government spending on infrastructure schemes.
However, new stainless-steel plant would enable the company to manufacture import substitute
products, which would provide business visibility with entering into new areas (i.e., oil exploration)
in export markets. We remain positive on RMTL, led by its strong balance sheet, ability to generate
superior return ratios, and capacity expansion programmes. Hence, we maintain our Buy rating on
the stock.
Supreme Industries • Supreme Industries is a leading manufacturer of plastic products with a significant presence across
Piping, Packaging, Industrial and Consumer segments. The company is well-placed to enhance its
market share as the COVID-19-led crisis resulted in consolidation of the plastic pipes industry (both
PVC and CPVC). Also, a shift in business from unorganised to organised players has been seen
owing to availability of raw materials (PVC resin) and liquidity issues. The imposition of anti dumping
duty on imports from China and Korea is also expected to help domestic manufacturers enhance
volumes. Considering healthy demand prospects during FY2021-22E, the company intends to incur a
capex of Rs 350 crores to expand capacities mainly in piping segment and packaging film segment.
We believe that the company will be able to deliver healthy revenue and earnings CAGR of 9.7%
and 14.4% respectively during FY2020-23E. We remain Positive on SIL from a medium to long-term
perspective, given recovery in rural economy, affordable housing sector and the new scheme for
piped water connection – ‘Nal se Jal’. Given the positive demand outlook from medium to long term
perspective coupled with healthy cashflow generation and a strong balance sheet, we retain our Buy
UPL • UPL is a global leader in agricultural solutions and has a healthy mix of high-value crops and high-
growth geographies. It has manufacturing facilities across 48 locations (earlier 34) and is present across
more than 138 countries. Q1FY21 revenue fell by 1% as volumes sold stayed unchanged, adjusted
EBITDA margin improved by 508 bps to 21.8%; adjusted PAT increased by 70.7%. Management eyes
revenue growth of 6-8%, EBITDA growth of 10-12% and net debt-equity ratio of 2x during FY2021E.
We expect the company to report revenue and earnings CAGR of 8.7% and 20%, respectively, during
FY2020-2022E. Long-term investors can consider accumulating the stock owing to reasonable
valuation and further strengthening of the balance sheet led by deleveraging. We maintain our Buy

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From the Editor’s Desk EQUITY

STOCK IDEAS STANDING (AS ON SEPTEMBER 03, 2020)

September 2020 4 Sharekhan ValueGuide

September 2020 5 Sharekhan ValueGuide

September 2020 6 Sharekhan ValueGuide

Pidilite Industries Limited

Buy PT : Rs. 1,645 Rs. 1,377

Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Pidilite-Aug07_2020_3R_StockIdea.pdf

Buy PT : Rs. 850 Rs. 696

Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Tech_M-Aug14_2020_3R_StockIdea.pdf

September 2020 7 Sharekhan ValueGuide

Recommendation Reco Price Price Target/ Upside (%)

Read report - https://www.sharekhan.com/MediaGalary/Equity/Birlasoft-Aug05_2020.pdf

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Read report - https://www.sharekhan.com/MediaGalary/Equity/Carborundum-Aug21_2020_New.pdf

September 2020 8 Sharekhan ValueGuide

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September 2020 9 Sharekhan ValueGuide

Price Target/ Upside

Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Relaxo-Aug03_2020.pdf

Aug 03, 2020 Bank of India Stock Update HOLD  48 53 

Read report - https://www.sharekhan.com/MediaGalary/StockIdea/BOI-Aug03_2020.pdf

Read report - https://www.sharekhan.com/MediaGalary/Equity/Vinati-Aug03_2020.pdf

 Upgrade   No change   Downgrade 

September 2020 10 Sharekhan ValueGuide

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Read report - https://www.sharekhan.com/MediaGalary/StockIdea/GCPL-Aug04_2020.pdf

September 2020 11 Sharekhan ValueGuide

Price Target/ Upside

Read report - https://www.sharekhan.com/MediaGalary/Equity/IOCL-Aug04_2020.pdf

Read report - https://www.sharekhan.com/MediaGalary/Equity/Gujarat_Gas-Aug04_2020.pdf

Aug 04, 2020 Dixon Technologies Viewpoint POSITIVE  7,957 13-15% 

Read report - https://www.sharekhan.com/MediaGalary/Equity/Dixon-Aug04_2020.pdf

September 2020 12 Sharekhan ValueGuide

Read report - https://www.sharekhan.com/MediaGalary/StockIdea/TataConsumer-Aug05_2020.pdf

Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Cadila-Aug05_2020.pdf

Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Jyothy-Aug05_2020.pdf

September 2020 13 Sharekhan ValueGuide

Price Target/ Upside

Read report - https://www.sharekhan.com/MediaGalary/Equity/Astral-Aug05_2020.pdf

Aug 06, 2020 PI Industries Stock Update BUY  2,036 2,250 

Read report - https://www.sharekhan.com/MediaGalary/StockIdea/PI-Aug06_2020.pdf

Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Apollo-Aug06_2020.pdf

September 2020 14 Sharekhan ValueGuide

Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Inox-Aug06_2020.pdf

Aug 06, 2020 Triveni Turbine Stock Update HOLD  64 72 

Read report - https://www.sharekhan.com/MediaGalary/StockIdea/Triveni-Aug06_2020.pdf

Read report - https://www.sharekhan.com/MediaGalary/Equity/Polyplex-Aug06_2020.pdf

September 2020 15 Sharekhan ValueGuide

Price Target/ Upside

Read report - https://www.sharekhan.com/MediaGalary/Equity/IndianHotels-Aug06_2020.pdf

Read report - https://www.sharekhan.com/MediaGalary/StockIdea/MnM-Aug07_2020.pdf

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