India Morning Brief

19 January 2023

World Indices
% Change
Close Daily YTD
BSE Sensex 61,046 0.9 -0.3
NSE 50 Nifty 18,165 0.9 -0.3
CNX Midcap 31,218 -0.1 -0.9
Contents of Morning Brief S&P 3,999 0.4 4.2
FTSE 100 7,849 -0.1 5.3
Quarterly Result Reviews Nasdaq 11,079 0.7 5.9
 IndusInd Bank | In-line quarter Hang Seng 21,578 -0.8 9.1
Shanghai Comp 3,224 -0.1 4.4
(Sameer Bhise, sameer.bhise@jmfl.com, Tel: (91 22) 66303489)
 ICICI Prudential Life Insurance | Positive surprise on margins; APE growth tepid Sensex and Total Turnover (US$ bn)

(Akshay Jain, akshay.jain@jmfl.com, Tel: (91 22) 66303099)

Company/Sector Update
 Bharti Airtel | Why a tariff hike delay may structurally benefit Bharti
(Dayanand Mittal, dayanand.mittal@jmfl.com, Tel: (91 96) 19388870)
 Prince Pipes and Fittings | Improving outlook
(Achal Lohade, achal.lohade@jmfl.com, Tel: (91 22) 66303081)
 Utilities | Energy transition: A perspective from Delhi
(Sudhanshu Bansal, sudhanshu.bansal@jmfl.com, Tel: (91 22) 66303128)

Net Institutional Flows (US$ bn)

Cash FII Cash MF
16-01-23 193.0 05-01-23 64.7
MTD -1665.3 MTD 99.1
YTD -1665.3 YTD 99.1
Derivatives
FII Index Stocks
16-01-23 -142.5 -94.6
MTD -543.0 -151.8

Turnover (US$ bn)

BSE %Chg NSE %Chg
Cash 0.4 -21.8 5.4 1.3
F&O 5.4 1.3 2686.3 50.7

Top Gainers/Losers* Turnover spurt over 5 days avg. BSE Sectoral & Broad Indices
Gainers %Chg Company Val-mn %Chg Sector Close %Chg %YTD
Macrotech Deve 5.8 Adani Green En 13.25 2.7 Auto 29,424 0.6 1.7
Nhpc Ltd 4.2 Reliance Inds 12.70 2.6 Bankex 47,972 0.2 -1.9
Adani Green En 3.7 Icici Bank Ltd 11.05 2.2 FMCG 16,175 1.1 0.6
Larsen & Toubr 3.6 Samvardhana Mo 11.04 2.2 Cap.Goods 34,558 1.6 3.6
Adani Power Lt 3.3 Larsen & Toubr 10.51 2.1 IT 29,506 0.8 2.9
Adani Total Ga 3.2 Infosys Ltd 9.48 1.9 Metal 21,273 0.1 2.0
Endurance Tech 3.2 Hdfc Bank Ltd 9.06 1.8 Oil & Gas 20,768 0.9 1.8
Losers %Chg 5 Day Movement Price %Chg Power 4,548 1.4 3.8 JM Financial Research is also available on:
One 97 Communi -5.0 Adani Green En 2,167 14.3 Realty 3,433 1.1 -0.4 Bloomberg - JMFR <GO>,
Fsn E-Commerce -5.0 Ultratech Ceme 7,374 6.6 Healthcare 22,997 -0.1 -0.2 Thomson Publisher & Reuters,
Zomato Ltd -4.8 Indian Oversea 31 6.1 PSU 10,015 -0.5 0.0
Bank Of India -4.6 Oil India Ltd 226 5.6 BSE100 18,345 0.7 -0.4
S&P Capital IQ, FactSet and Visible Alpha
Indus Towers L -3.3 Adani Total Ga 3,848 5.3 BSE200 7,823 0.7 -0.4
Gland Pharma L -3.2 Macrotech Deve 1,089 5.2 BSE500 24,519 0.6 -0.4 Please see Appendix I at the end of this report
Note: *From BSE200 for Important Disclosures and Disclaimers and
Research Analyst Certification.
JM Financial Institutional Securities Limited
INDIA MORNING BRIEF 19 January 2023

IndusInd Bank | In-line quarter Key Statistics

% Change
Result Update BUY INR 1,470 Close Daily YTD
IndusInd Bank (IIB) reported a steady quarter with core-PPOP growth at +20% YoY, healthy loan US$/Inr* 82 -0.2 1.2
and deposit growth momentum (+19% and +14% YoY resp.) and steady asset quality US$/Euro 1 0.2 1.3
US$/Yen 129 0.0 2.0
(GNPL/NNPL at 2.06%/0.62%). Loan growth is picking up with improving loan growth
10 yr G-Sec(%) 7 0.3 -0.4
momentum across segments. We expect IIB to clock 20% CAGR in loans over FY22-25E in line Call rate (%) 6 -3.2 -3.2
with management guidance. IIB’s cost of deposits has inched up 37bps QoQ as the bank is Brent-spot (US$/bbi) 85 1.8 -0.5
increasingly focused on retail and granular liabilities. However, we expect impact on NIMs to be Gold (US$) 1,912 -0.2 4.8
Aluminum(LME,US$/t) 2,595 1.1 10.5
minimal driven by pick up in high yielding segments. While slippages has moderated to 2.6%
Copper(LME,US$/t) 9,088 -0.9 8.6
(annualised) vs 2.9% QoQ, a further reduction in the slippages is desirable. IIB utilised its excess Zinc(LME,US$/t) 3,324 -0.7 10.7
provisions during 3Q (INR 4.6bn) and excess provision buffer now stands at 0.8% of loans. We Steel(US$/t) 4,200 0.0 0.5
expect avg. credit costs of 150bps over FY23-25E for IIB. Management indicated that exposure *+/- chg reflects $appreciation/depreciation
to stressed telco is limited to INR 17.3 bn (incl INR 10bn fund based). We believe IndusInd is on
track to deliver ROA/RoE of 1.9%/16.9% in FY25E. IIB trades at undemanding valuations of 1.3x Top Sensex Movers
c.85% of Sensex wt.
FY25E BVPS and we expect stock to rerate upwards aided by steady delivery on growth and
Company Price Cont Daily YTD
return metrics. We value the bank at 1.6x FY25E BVPS to arrive at a target price of INR 1,470. Reliance Inds 2,479 99.6 1.4 -2.7
Maintain BUY. Clarity on the extension of CEO tenure will be a key monitorable. Hdfc Bank Ltd 1,609 99.8 1.5 -1.1
Icici Bank Ltd 866 -0.9 0.0 -2.9
Infosys Ltd 1,540 46.9 1.0 2.1
ICICI Prudential Life Insurance | Positive surprise on margins; APE growth tepid Housing Dev Fin 2,641 77.0 1.8 0.2
Result Update BUY INR 600 Tata Consultancy 3,379 39.1 1.3 5.8
Axis Bank Ltd 918 563.8 0.5 -1.7
In 3QFY23, ICICI Prudential (IPRU) reported APE of INR 18.2bn registering degrowth of 5.5% Larsen & Toubro 2,213 77.8 3.5 6.1
YoY vs 14% for private peers owing to degrowth in linked business. On unweighted basis, IPRU Kotak Mahindra 1,796 13.3 0.6 -1.7
reported +4% YoY premium growth in 3QFY22, lower than the industry (+19%). In terms of Itc Ltd 332 15.4 0.7 0.2
product mix, 3QFY23 APE saw a 1030bps YoY decline in ULIP share while non-linked, protection, Hindustan Unilev 2,666 55.5 2.7 4.2
Asian Paints Ltd 2,941 16.2 0.8 -4.9
group and annuities witnessed a jump of +420bps, +280bps, +180bps and +170bps YoY resp. State Bank Ind 593 -31.9 -1.7 -3.3
For the 9MFY23, IPRU generated NBV of INR 17.1bn, a growth of 23% YoY driven by a) better Bharti Airtel 766 14.9 0.9 -5.1
product mix with c.580bps YoY higher share of traditional savings (incl. annuities), and b) 130- Bajaj Finance Lt 5,983 -7.2 -0.5 -9.0
340bps YoY improvement in retail persistency across buckets, even though APE growth was
tepid. Accordingly, margins improved 490bps YoY to 32.0%. Along with the product mix, IPRU Top Turnover (NSE+BSE)
*% of total turnover
has diversified the distribution mix as well – distribution mix for the 3QFY23 saw a sharp drop in
Company INR Bn %
share of banca to 27% of APE vs 40% last year with APE from ICICI Bank banca down 50% YoY Adani Green Ener 13.2 2.7
while non ICICI Bank banca was up 2.2% YoY. Further, share of group, partnership and agency Reliance Inds 12.7 2.6
distribution was up +510bps, +330bps and +250bps YoY resp. On the cost front, expense ratios Icici Bank Ltd 11.1 2.2
Samvardhana Moth 11.0 2.2
inched up YoY with savings LOB expense ratio increasing to 13.9% for 9MFY22 vs 12.2% last Larsen & Toubro 10.5 2.1
year. Solvency was steady at 212% as of Dec’22, up 11.5ppts QoQ. We expects key parameters Infosys Ltd 9.5 1.9
to change in favour of ICICI Pru Life – a) comeback of APE growth, b) balanced product mix to Hdfc Bank Ltd 9.1 1.8
expand NBMs, and c) non-ICICI Bank channels gaining dominance, which, in turn, should help State Bank Ind 8.2 1.7
Punjab Natl Bank 7.3 1.5
ICICI Pru Life to rerate upwards. IPru Life is currently trading at an undemanding valuation of Bank Of India 7.2 1.4
1.7x FY24E EV, and we expect a material rerating in it, going ahead. We value ICICI Pru Life at Fed Bank Ltd 6.6 1.3
1.8x FY25E EV to arrive at our TP of INR 600. Maintain BUY. Axis Bank Ltd 6.5 1.3
Adani Enterprise 6.2 1.2
Tata Consultancy 6.1 1.2
Bharti Airtel | Why a tariff hike delay may structurally benefit Bharti Vodafone Idea Lt 5.9 1.2
Company Update BUY INR 940
The recent weakness in Bharti’s share price seems to be primarily driven by concerns around Future OI gainers
*% of total turnover
potential delay in a tariff hike in the India wireless business (due to competition from Jio and
Company Vol (mn) %Chg
government inflation concerns as we head into a critical election phase over the next 18 months) Future OI gainers 0.0 0.0
amidst a high capex phase as telcos aggressively roll-out 5G pan-India. There is no doubt that the Siemens Ltd 1.9 20.6
industry needs significant tariff hikes in the medium to long term. Though a tariff hike delay for City Union Bank Ltd 11.7 12.1
Delta Corp Ltd 19.1 11.7
the next 12-18 months can’t be ruled out, we believe such as delay could be structurally positive Cummins India Ltd 1.6 8.1
for Bharti (and Jio) as this will: a) expedite the transition to a duopoly market by further deterring Future OI losers 0.0 0.0
Vodafone Idea’s (VIL) fund-raise plans (VIL needs ARPU to jump sharply to INR 164 in FY24 and Aditya Birla Fashion And Ret 16.1 -10.6
further to INR 377 in FY27 vs. INR 131 in 2QFY23 to meet its payment obligations) and Can Fin Homes Ltd 3.9 -7.4
L&T Finance Holdings Ltd 70.3 -5.5
significantly boost subscriber (subs) market share for Bharti (and Jio), and b) strengthen pricing Punjab National Bank 206.6 -5.1
power for Bharti (and Jio) to enable them take frequent tariff hike to get to its long-term ARPU MW Position 0.0 0.0
target of INR 300 (enabling telcos to earn a respectable RoCE of ~15%). Our analysis suggests a Vodafone Idea Ltd 542.1 44.2
Punjab National Bank 206.6 41.3
potential upside of ~INR 70/share to our base case TP of Bharti (of INR 940) assuming 50% Tata Steel Ltd 161.8 10.8
probability of a duopoly market and Bharti garnering ~110mn subs from VIL (i.e., ~48% of VIL’s Idfc Ltd 117.1 39.5
total subs) without any ARPU dilution. However, a tariff hike delay in FY24 could mean a 2-3% #Contribution to Change in Sensex, MWPL – Market wide
cut in our FY24 EBITDA while impact on our DCF-based TP will be limited to only ~INR 10/share position limit, ** One day prior data
(or 1%). At CMP, Bharti’s India wireless business is trading at implied ~7.5x FY24 EV/EBITDA vs.
~10x implied as per our base case DCF valuation (vs. global peers trading at 6-8x); we believe
Bharti’s India wireless business should trade at a significant premium to global peers given the
structural ARPU growth story with industry consolidation largely behind us. As highlighted in our
Nov’22 note, we expect a structural uptrend in industry ARPU driven by the future investment
needs – the industry requires an ARPU of INR 256-285 in the next 3-5 years for a pre-tax RoCE of
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INDIA MORNING BRIEF 19 January 2023
12-15% to justify capex; this is likely to come via a mix of: a) tariff hikes, and b) continued MBB
upgrades and rise in data usage. We maintain BUY (unchanged TP of INR 940) as we expect
Bharti’s India wireless ARPU to grow at a CAGR of ~10% over FY22-28 to INR 280 in FY28 (vs.
INR 190 in 2QFY23) driving ~15% CAGR in consolidated EBITDA. The key risk is the potential
entry of Adani into the consumer mobility business, which could disrupt the structural ARPU
growth story and pose a threat to subs market share.

Prince Pipes and Fittings | Improving outlook

Company Update BUY INR 660
We recently hosted the management of Prince Pipes (Prince) in Singapore for a non-deal road
show. Discussions with investors revolved around – 1) plumbing and agri segment demand
outlook, 2) PVC resin prices outlook and its impact on the industry, 3) the company’s expansion
into new product categories, 4) distribution expansion, branding and investment in technology,
and 5) Prince’s market share and competitive intensity in the sector. According to the
management, plumbing and SWR segment demand is healthy; primary sales in the last few
quarters was impacted due to channel de-stocking on account of decline in PVC resin prices. The
agri-segment, which saw three consecutive weak seasons, is expected to see meaningful
improvement in demand in 1HCY23. Inventory loss on account of decline in PVC resin is
expected to continue in 3Q but it is expected to be significantly lower than that in 2QFY23 as
PVC resin prices rebounded in Dec’22. Prince Pipes is expanding its product categories by
foraying into Bathware (in Apr’23), after entering into the water storage tanks segment in FY21.
We continue to like Prince given its focus on a) introduction of innovative products, b)
distribution expansion, and c) premiumisation through branding activities, which will aid long-
term sustainable volume growth. We maintain BUY with our Sept’23TP of INR 660, basis 30x
Sept’24EPS.

Utilities | Energy transition: A perspective from Delhi

Sector Update
We recently met key policymakers of the Government of India (GOI) who are part of the team
driving energy transition in the country - Mr Ghanshyam Prasad, Chairperson and Ex-Officio
Secretary to the Government of India, Central Electricity Authority (CEA); Mr Harpreet Singh
Pruthi, Secretary, Central Electricity Regulatory Commission (CERC); Mr Lalit Bohra, Jt Secretary
(Solar and Energy Storage), Ministry of New and Renewable Energy (MNRE); and Mr Proteek K.
Chakraborty, Chief (Finance), Central Electricity Regulatory Commission (CERC). The discussion
was focussed on understanding the policy perspective on various issues driving energy transition
in India that we identified in our note, ‘What we are tracking in 2023?’. Overall, we had a
pleasant feeling and confidence that India is on the right track to achieve its energy transition
targets with a few hits and misses, as we also envisaged in our note, ‘Green & Grey: Together
We Win’.

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INDIA MORNING BRIEF 19 January 2023

Earnings Calendar –January/Februrary 2023

Monday Tuesday Wednesday Thursday Friday Saturday
16 17 18 19 20 21
Angel One Bank of India Alok Industries 360 ONE Atul ICICI Bank
Bank of Maha Delta Corp CCL Products Asian Paints Bandhan Bank IDFC First Bank
Century Textiles Dishman Carbogen Central Bank AU Small Finance Coforge Kotak Mah. Bank
Federal Bank ERIS Lifescience IndusInd Bank Can Fin Homes DCM Shriram Mah. Scooters
Hathway Cable Oracle Fin.Serv. Happiest Minds HDFC Life Insur. Pun. & Sind Bank
ICICI Lombard Persistent Sys Hatsun Agro Indian Energy Ex SBI Life Insuran
ICICI Pru Life Rallis India Havells India JSW Energy UltraTech Cem.
Mastek Hind. Unilever JSW Steel Yes Bank
Metro Brands Hindustan Zinc LTI Mindtree
Natl. Aluminium ICICI Securities Petronet LNG
Netwrk.18 Media Indiamart Inter. RBL Bank
Tata Inv.Corpn. L&T Technology Reliance Industr
Tata Metaliks Mphasis Saregama India
TV18 Broadcast Polycab India Tanla Platforms
PVR Union Bank (I)
Sterling & Wils.
Monday Tuesday Wednesday Thursday Friday Saturday
23 24 25 26 27 28
Amber Enterp. CG Power & Indu. Amara Raja Batt. Bajaj Finance Bharat Electron
Axis Bank Chalet Hotels Bajaj Auto Glenmark Life Poly Medicure
Canara Bank Colgate-Palmoliv Blue Dart Expres Godfrey Phillips
Container Corpn. Easy Trip Plann. CEAT Sh.Renuka Sugar
Gland Pharma Granules India Cipla Sterlite Tech.
HFCL HDFC AMC Dr Reddy's Labs Vedanta
IDBI Bank Indoco Remedies Jindal Saw
Jindal Stain. Indus Towers Johnson Con. Hit
Jindal Stain. Hi Kaveri Seed Co. Jyothy Labs
Karur Vysya Bank Latent View Patanjali Foods
KEI Industries Laxmi Organic Sundaram Clayton
Poonawalla Fin Macrotech Devel. Tata Elxsi
Route Mobile Maruti Suzuki Tata Motors
Syngene Intl. Pidilite Inds. Tata Motors-DVR
Tata Comm PNB Housing Tata Steel Long
Triveni Turbine SBI Cards Team Lease Serv.
Zensar Tech. Sona BLW Precis. Torrent Pharma.
Sonata Software V I P Inds.
Strides Pharma VST Industries
Supreme Inds.
Tata Coffee
TVS Motor Co.
UCO Bank
United Spirits
Vaibhav Global
Monday Tuesday Wednesday Thursday Friday Saturday
30 31 1 2 3 4
Bajaj Finserv BASF India Alembic Pharma Aditya Birla Cap Emami Multi Comm. Exc.
Bajaj Holdings Blue Star CDSL Coromandel Inter Engineers India
CSB Bank Cholaman.Inv.&Fn Gillette India Crompton Gr. Con Intellect Design
Exide Inds. GHCL Lak. Mach. Works Dabur India Kansai Nerolac
Larsen & Toubro Godrej Consumer Prism Johnson Firstsour.Solu. M & M Fin. Serv.
Nippon Life Ind. IOCL Relaxo Footwear Godrej Propert. Manappuram Fin.
Tech Mahindra Max Financial Timken India HDFC Medplus Health
P & G Hygiene UTI AMC Hawkins Cookers Sumitomo Chemi.
PCBL Ltd Mahindra Holiday Tata Power Co.
Star Health Insu Mahindra Life. Thyrocare Tech.
Sun Pharma.Inds. Privi Speci.
TTK Prestige Tata Consumer
Westlife Food Titan Company
Monday Tuesday Wednesday Thursday Friday Saturday
6 7 8 9 10 11
Tasty Bite Eat. Cams Services Endurance Tech. Akzo Nobel ABB
Tata Steel Glaxosmi. Pharma Godrej Agrovet Esab India
Navin Fluo.Intl. P & G Health Ltd Glenmark Pharma.
The Ramco Cement Shree Cement Indigo Paints
Thermax
Monday Tuesday Wednesday Thursday Friday Saturday
13 14 15 16 17 18
Biocon Nestle India
Bosch
Source: Capitaline database

JM Financial Institutional Securities Limited Page 4

INDIA MORNING BRIEF 19 January 2023

Details of upcoming results calls

Results Concall Concall Concall dial-in
Company Name Concall time (IST) DiamondPass
date date Day (India)

IndiaMART InterMESH Ltd 19.01.2023 20.01.2023 Friday 04:00pm Click here

Asian Paints Ltd. 19.01.2023 20.01.2023 Friday 05:00pm 1800-121-3575 Click here

+91 22 6280 1416

Hindustan Unilever Ltd. 19.01.2023 20.01.2023 Friday 06:15pm Click here
+91 22 7115 8317
+91 22 6280 1325
JSW Energy Ltd. 20.01.2023 20.01.2023 Friday 06:30pm Click here
+91 22 7115 8226
+91 22 6280 1562
Cipla Ltd. 25.01.2023 25.01.2023 Wednesday 04:30pm Click here
+91 22 7115 8387
+91 22 6280 1439
Torrent Pharmaceuticals Ltd. 25.01.2023 25.01.2023 Wednesday 05:30pm
+91 22 7115 8803
+91 22 6280 1219
Dr. Reddy’s Laboratories Ltd. 25.01.2023 25.01.2023 Wednesday 07:00pm Click here
+91 22 7115 8120
Sun Pharmaceutical Industries +91 22 6629 0049
31.01.2023 31.01.2023 Tuesday 06:30pm Click here
Ltd. +91 22 7194 5729

JM Financial Institutional Securities Limited Page 5

INDIA MORNING BRIEF 19 January 2023

Our most recent and popular reports (Please click on heading to read the report)

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India Internet Nazara Technologies Quick Commerce Tata Digital

JM Financial Institutional Securities Limited Page 6

INDIA MORNING BRIEF 19 January 2023

Valuation Table
Coverage Universe 18-Jan-23 Price P/E based valuation

Mkt Cap 12M (%) EPS (Rs) EPS Gr (%) PE (x) PEG EV/EBITDA (x) ROE (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY21A FY22A FY23E FY24E 22-24 FY22A FY23E FY24E (x) FY21A FY22A FY23E FY24E FY21A FY22A FY23E FY24E
Airlines (Ashutosh Somani, ashutosh.somani@jmfl.com, +91-22-66303083) `
Indigo HOLD 812 2,106 1,860 -11.7 -150.7 -159.9 -37.0 129.2 NA NA NA 16.3 NA NM NM 19.5 9.4 NA 0.0 0.0 0.0
Automobiles (Vivek Kumar, vivek.kumar@jmfl.com, +91-22-66303019)
Ashok Leyland* BUY 431 147 190 29.4 -1.2 0.1 3.3 7.2 725.7 NA 43.9 20.4 0.0 97.4 45.8 21.1 12.5 NA 0.4 12.9 24.4
Bajaj Auto* BUY 1,040 3,593 4,250 18.3 157.4 162.5 207.0 238.3 21.1 22.1 17.4 15.1 0.7 16.6 15.4 12.4 10.4 20.2 18.1 22.0 23.9
Eicher Motors* BUY 866 3,168 4,100 29.4 48.7 58.0 100.5 127.3 48.1 54.6 31.5 24.9 0.5 44.1 37.0 22.7 18.2 14.8 15.5 23.1 24.1
Hero MotoCorp* BUY 550 2,750 3,200 16.4 148.4 123.8 157.0 194.5 25.3 22.2 17.5 14.1 0.6 23.1 14.6 11.8 9.4 20.2 16.0 19.2 21.8
Mahindra & Mahindra* BUY 1,635 1,316 1,500 14.0 32.9 43.0 55.6 67.8 25.6 30.6 23.7 19.4 0.8 23.6 21.7 15.6 12.5 11.4 14.0 16.1 17.3
Maruti Suzuki* BUY 2,542 8,414 11,000 30.7 140.1 124.7 272.5 399.3 78.9 67.5 30.9 21.1 0.3 39.5 37.2 19.9 13.2 8.5 7.1 14.4 18.7
Tata Motors BUY 1,499 418 550 31.5 0.8 -28.2 -13.7 15.2 NA NA NA 27.5 NA 5.8 7.3 7.2 4.9 0.5 NA NA 13.2
TVS Motor* BUY 466 981 1,300 32.5 12.9 19.4 32.7 41.8 46.6 50.5 30.0 23.5 0.5 32.8 24.6 17.8 14.1 15.7 20.5 28.4 28.8
Auto Ancillaries (Vivek Kumar, vivek.kumar@jmfl.com, +91-22-66303019), (Ronak Mehta, ronak.mehta@jmfl.com, +91-22-66303125)
Apollo Tyres BUY 202 319 350 9.8 15.1 10.1 13.5 23.5 52.1 31.4 23.7 13.6 0.3 9.1 10.2 8.7 6.3 9.0 5.6 7.1 11.4
Bharat Forge BUY 401 861 960 11.5 3.9 21.2 22.3 32.1 22.9 40.5 38.7 26.8 1.2 48.6 21.3 20.5 15.6 3.4 16.5 14.8 18.4
Ceat Ltd BUY 66 1,639 1,800 9.8 115.4 20.5 54.1 115.9 137.8 80.0 30.3 14.2 0.1 8.2 12.5 10.0 6.8 15.0 2.5 6.6 13.1
Motherson Sumi Wiring India BUY 230 52 72 38.3 1.3 1.5 1.8 2.5 27.6 34.5 29.1 21.2 0.8 29.8 22.1 18.7 13.9 NA 52.2 46.7 53.4
Samvardhana Motherson International BUY 507 75 115 53.8 2.3 1.4 2.4 4.3 78.4 55.0 31.3 17.3 0.2 10.0 13.8 11.0 7.8 9.2 5.6 7.6 12.4
Sona BLW Precision Forgings BUY 244 418 700 67.5 4.0 5.5 7.1 11.5 44.0 75.5 59.1 36.4 0.8 55.2 43.8 33.1 21.4 18.5 19.6 19.1 25.8
Suprajit Engineering BUY 46 334 440 31.7 10.2 11.7 14.0 20.0 30.8 28.6 23.9 16.7 0.5 19.5 17.4 14.5 10.3 15.5 15.6 16.5 20.0
Building Materials (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
Century Plyboards* BUY 114 515 770 49.6 8.8 14.3 19.3 21.8 23.7 36.1 26.7 23.6 1.0 34.8 21.3 18.4 15.7 16.8 22.4 24.4 22.2
Cera Sanitaryware* HOLD 70 5,386 5,300 -1.6 77.9 118.1 147.0 163.8 17.8 45.6 36.6 32.9 1.8 46.7 31.7 26.2 23.3 12.3 16.3 17.9 17.7
Greenply Industries* BUY 18 145 224 54.7 5.0 7.7 5.1 7.3 -2.9 18.8 28.5 19.9 NA 15.8 13.3 17.2 10.5 15.0 19.4 11.0 14.1
Greenlam Industries HOLD 40 313 320 2.3 7.3 7.8 9.6 11.9 23.8 40.3 32.6 26.3 1.1 23.1 21.9 18.9 15.4 16.5 15.3 15.2 14.9
Greenpanel Industries BUY 40 326 590 80.8 6.9 19.0 24.2 25.3 15.4 17.1 13.5 12.9 0.8 21.3 10.7 7.5 8.4 11.6 26.5 26.8 23.2
Kajaria Ceramics BUY 171 1,071 1,220 13.9 19.4 23.7 23.1 31.0 14.4 45.2 46.5 34.5 2.4 32.9 27.5 27.2 21.1 17.2 18.9 16.5 20.1
Prince Pipes and Fittings BUY 64 583 660 13.2 16.4 22.4 15.2 20.3 -4.9 26.0 38.3 28.7 NA 17.3 15.7 34.8 15.6 19.2 21.4 13.2 16.5
Somany Ceramics BUY 22 511 960 87.9 16.9 20.9 24.3 38.8 36.2 24.4 21.0 13.2 0.4 13.3 12.8 12.1 8.0 11.3 12.8 13.5 19.0
Business Services
TeamLease Services BUY 42 2,465 2,340 -5.1 54.7 69.3 86.3 NA NA 35.6 28.6 NA NA 36.3 29.9 25.0 NA 15.1 16.3 17.2 NA
Cement (Manish Agrawal, manish.agrawal@jmfl.com, +91-22-66303068)
ACC BUY 442 2,354 2,730 16.0 92.3 102.0 43.0 107.1 2.5 23.1 54.8 22.0 9.0 15.2 12.2 23.9 11.3 14.3 14.2 5.5 12.8
Ambuja Cement* BUY 1,025 516 610 18.1 17.1 19.3 9.0 14.7 -12.7 26.8 57.5 35.1 NA 19.6 15.8 26.7 16.7 14.5 15.9 6.7 11.3
Dalmia Bharat BUY 355 1,893 2,140 13.1 64.7 43.4 23.9 57.1 14.8 43.6 79.1 33.1 2.2 12.9 14.0 17.7 12.0 10.3 5.6 2.8 6.3
Heidelberg Cement HOLD 42 186 195 4.4 13.9 11.1 9.0 15.1 16.4 16.7 20.7 12.4 0.8 8.1 9.3 11.1 7.1 22.4 16.5 13.0 20.9
JK Cements* HOLD 226 2,920 2,700 -7.5 99.9 98.4 95.1 123.1 11.8 29.7 30.7 23.7 2.0 16.7 17.2 17.2 13.5 22.5 19.1 16.1 18.0
JK Lakshmi Cement* BUY 88 749 684 -8.7 33.5 38.2 31.2 45.9 9.6 19.6 24.0 16.3 1.7 12.1 11.4 12.7 9.4 20.8 19.8 14.0 17.9
Orient Cement BUY 27 134 170 27.3 10.5 12.9 5.7 10.7 -8.8 10.4 23.6 12.5 NA 6.2 5.1 9.5 6.7 17.7 18.6 7.5 13.2
The Ramco Cements SELL 168 711 695 -2.2 32.9 37.4 23.7 36.7 -1.0 19.0 30.0 19.4 NA 12.7 15.9 15.7 11.8 14.5 14.3 8.1 11.6
Sagar Cements BUY 30 232 280 20.5 79.0 25.2 1.5 10.8 -34.5 9.2 NA 21.5 NA 2.9 7.1 15.1 8.8 17.2 4.8 1.3 8.4
Shree Cement* BUY 868 24,044 24,135 0.4 647.7 633.6 372.7 743.8 8.3 37.9 64.5 32.3 3.9 20.0 22.1 27.7 16.9 16.6 14.1 7.6 13.9
UltraTech Cement* BUY 2,115 7,327 8,085 10.3 190.8 244.9 197.1 282.1 7.3 29.9 37.2 26.0 3.5 19.9 19.8 20.7 15.4 13.5 15.3 11.1 14.3

JM Financial Institutional Securities Limited Page 7

INDIA MORNING BRIEF 19 January 2023

Mkt Cap 12M (%) EPS (Rs) EPS Gr (%) PE (x) PEG EV/EBITDA (x) ROE (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY21A FY22A FY23E FY24E 22-24 FY22A FY23E FY24E (x) FY21A FY22A FY23E FY24E FY21A FY22A FY23E FY24E
Consumer Durables (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
Bajaj Electricals* BUY 132 1,145 1,500 31.0 11.6 13.0 22.9 35.5 64.9 87.8 50.1 32.3 0.5 44.8 52.0 32.5 21.0 8.9 9.0 14.4 19.8
Crompton Greaves Consumer ElectricalsB UY 206 323 470 45.5 9.8 9.3 7.4 10.1 4.0 34.6 43.5 32.0 8.0 26.9 27.7 25.4 19.9 36.3 27.0 18.3 22.4
Havells India* BUY 741 1,183 1,400 18.3 16.3 19.0 17.6 25.9 16.7 62.2 67.3 45.7 2.7 46.6 40.9 44.7 30.8 21.6 21.4 17.5 22.6
Stove Kraft BUY 16 499 880 76.4 24.9 17.2 21.8 29.8 31.7 29.1 22.9 16.8 0.5 14.4 17.9 12.1 9.2 67.0 16.9 18.2 21.0
TTK Prestige HOLD 109 788 1,020 29.4 17.8 21.2 21.6 25.7 10.2 37.2 36.5 30.6 3.0 34.4 26.0 24.9 20.8 17.8 18.5 16.6 17.5
V-Guard Industries* BUY 110 255 280 9.8 4.6 5.2 4.4 6.6 12.1 48.6 57.4 38.7 3.2 35.2 33.1 35.9 25.3 17.9 17.4 13.0 17.4
Diversified Services (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
CMS Info Systems BUY 48 309 390 26.2 11.4 15.1 18.0 21.2 18.5 20.5 17.1 14.6 0.8 14.9 11.1 8.6 7.1 18.4 20.0 21.5 21.6
Consumer Staples & Retail (Richard Liu, richard.liu@jmfl.com, +91-22-66303064), (Mehul Desai, mehul.desai@jmfl.com, +91 9987997838)
Aditya Birla Fashion & Retail BUY 248 261 390 49.4 -6.2 -1.2 4.1 6.3 NA NA 63.0 41.7 NA 44.1 22.7 13.6 11.1 NA NA 11.7 12.8
Asian Paints HOLD 2,813 2,933 3,505 19.5 32.8 32.5 45.7 56.5 31.8 90.2 64.2 51.9 1.6 57.1 57.9 42.2 34.6 27.5 23.5 30.1 33.2
Avenue Supermarts Ltd BUY 2,394 3,696 4,440 20.1 16.8 23.2 35.7 45.4 39.8 NA NA 81.3 2.0 135.9 95.2 63.8 49.9 9.3 11.6 15.6 16.9
Bajaj Consumer Care BUY 26 174 215 23.4 15.1 11.5 9.5 12.2 3.1 15.2 18.4 14.3 4.7 8.1 11.2 13.9 9.4 31.6 21.7 17.5 22.0
Britannia Industries BUY 1,044 4,333 4,210 -2.8 77.4 63.3 71.6 88.0 17.9 68.4 60.5 49.2 2.8 41.8 48.1 42.2 34.2 46.9 50.0 62.9 67.0
Campus Activewear BUY 119 389 565 45.1 0.9 3.4 4.9 7.4 47.9 NA 78.9 52.7 1.1 103.1 49.8 40.5 28.6 9.0 27.9 30.0 32.7
Colgate-Palmolive India HOLD 409 1,502 1,625 8.2 36.9 38.5 39.4 44.0 6.9 39.0 38.1 34.1 4.9 26.5 25.5 25.2 22.6 72.7 72.1 66.6 79.6
Dabur HOLD 985 556 610 9.7 9.5 10.3 11.2 12.9 12.0 53.9 49.6 43.0 3.6 48.2 43.4 40.1 34.3 23.6 22.7 22.4 23.3
Go Fashion (India) BUY 63 1,176 1,410 19.9 -0.7 6.6 17.4 24.6 93.3 NA 67.7 47.9 0.5 130.8 52.1 28.1 21.4 NA 10.6 19.3 22.2
Godrej Consumer Products BUY 954 933 1,000 7.2 16.0 16.9 15.6 21.1 11.6 55.2 59.8 44.3 3.8 39.2 38.1 39.7 30.6 18.9 16.5 13.1 15.8
Hindustan Unilever BUY 6,234 2,653 2,855 7.6 34.1 37.4 41.8 48.7 14.1 70.9 63.5 54.5 3.9 53.0 47.9 43.3 37.3 28.7 18.2 19.7 22.2
ITC BUY 4,125 332 395 18.9 10.7 12.4 14.8 16.4 15.0 26.9 22.4 20.3 1.4 22.3 18.4 15.0 13.5 21.0 24.8 28.7 30.3
Marico Ltd. BUY 655 507 575 13.5 9.0 9.5 9.7 12.0 12.5 53.3 52.4 42.2 3.4 40.3 38.4 35.8 29.0 37.2 37.3 37.1 44.8
Restaurant Brands Asia HOLD 57 115 135 17.6 -4.3 -1.9 -0.2 1.5 NA NA NA 74.5 NA 270.5 57.1 26.5 15.9 NA NA NA 3.8
Sapphire Foods India BUY 81 1,272 1,665 30.9 -15.9 7.3 16.3 16.9 52.1 NA 78.2 75.0 1.4 54.0 25.4 17.1 13.0 NA 6.3 9.8 9.3
Tata Consumer Products BUY 693 746 860 15.4 9.5 10.5 13.4 16.5 25.4 70.9 55.8 45.1 1.8 43.8 39.6 34.1 28.1 6.2 6.5 8.0 9.4
Titan Company HOLD 2,135 2,405 2,980 23.9 10.9 24.9 39.5 46.8 37.2 96.7 60.9 51.4 1.4 122.3 63.8 40.5 34.2 13.7 26.4 32.7 31.0
Westlife Development BUY 107 686 900 31.2 -6.7 -0.1 8.8 11.9 NA NA 78.1 57.9 NA 227.8 56.7 26.3 21.3 NA NA 25.8 27.7
Hotels (Sandeep Tulsiyan, sandeep.tulsiyan@jmfl.com, +91-22-66303085)
Chalet Hotels BUY 69 337 330 -2.1 -6.4 -3.7 2.2 7.5 NA NA NA 44.8 NA 1,265.5 64.2 24.2 15.8 NA NA 3.3 10.6
Industrials (Sandeep Tulsiyan, sandeep.tulsiyan@jmfl.com, +91-22-66303085)
ABB India* BUY 608 2,870 3,350 16.7 7.7 20.9 30.3 41.5 40.8 NA 94.7 69.2 1.7 216.1 104.4 70.0 52.1 4.6 11.6 14.5 16.9
AIA Engineering BUY 233 2,469 2,900 17.5 60.0 65.6 86.0 98.0 22.3 37.7 28.7 25.2 1.1 33.7 31.6 22.5 18.9 14.2 13.7 16.0 16.1
Amber Enterprises BUY 63 1,870 2,600 39.0 24.3 32.4 47.4 66.3 43.1 57.7 39.4 28.2 0.7 28.7 23.9 17.9 14.0 6.0 6.5 8.8 11.2
Bharat Electronics* BUY 749 103 135 31.7 2.8 3.2 4.1 4.6 19.4 31.9 25.2 22.4 1.2 22.0 20.4 16.5 14.5 19.9 20.5 23.2 23.3
BHEL* SELL 278 80 38 -52.0 -3.9 -1.9 2.3 2.6 NA NA 34.4 30.3 NA -8.3 -70.8 12.9 10.5 NA NA 3.1 3.5
Blue Star BUY 120 1,244 1,400 12.6 7.7 17.4 27.5 37.6 46.9 71.4 45.2 33.1 0.7 50.5 35.2 26.1 19.5 8.7 17.4 24.0 27.6
Cochin Shipyard* HOLD 66 506 380 -24.8 46.4 44.6 41.5 43.6 -1.2 11.3 12.2 11.6 NA 6.4 5.7 7.2 5.8 15.8 14.1 12.1 12.0
Cummins India* BUY 408 1,474 1,500 1.8 21.8 28.2 33.7 40.6 20.1 52.3 43.7 36.3 1.8 65.7 44.3 37.0 29.8 14.1 16.8 18.5 20.4
Data Patterns (India) BUY 65 1,249 1,500 20.1 11.9 18.1 22.1 29.2 27.0 69.0 56.4 42.8 1.6 63.7 44.8 39.3 29.5 30.8 24.0 18.4 20.3
Dixon Technogies BUY 212 3,559 5,000 40.5 27.3 32.5 50.2 79.1 56.0 NA 71.0 45.0 0.8 72.7 55.3 37.0 25.7 25.0 22.0 25.7 31.4
GE T&D India* SELL 30 117 98 -15.9 2.2 2.1 3.3 5.3 58.7 55.9 35.6 22.2 0.4 21.7 20.1 15.4 10.9 5.2 4.6 6.9 10.1
GMM Pfaudler BUY 71 1,579 2,400 52.0 25.7 30.2 46.0 56.3 36.6 52.3 34.3 28.1 0.8 39.3 21.9 17.9 14.7 30.0 28.3 33.4 31.2
Kirloskar Oil Engines* BUY 46 316 360 13.9 11.6 10.7 19.1 23.0 46.3 29.4 16.5 13.7 0.3 16.9 17.2 10.6 8.6 8.9 7.6 12.4 13.8
MTAR Technologies BUY 52 1,700 2,100 23.5 15.0 19.8 31.3 52.3 62.5 85.9 54.2 32.5 0.5 60.8 55.7 36.1 21.7 13.1 12.2 17.3 24.3
Rolex Rings BUY 50 1,822 2,500 37.2 37.3 48.4 71.9 87.6 34.5 37.6 25.3 20.8 0.6 42.9 22.6 18.6 15.2 28.6 29.3 31.4 29.9
Schaeffler India* BUY 427 2,729 2,750 0.8 18.6 40.2 56.2 66.7 28.8 67.8 48.6 40.9 1.4 77.2 42.4 31.5 26.3 9.5 18.5 22.1 22.6
SKF India* BUY 228 4,606 4,900 6.4 60.2 79.9 111.8 122.3 23.7 57.6 41.2 37.7 1.6 53.0 40.2 29.0 26.2 17.2 22.9 27.3 26.1
Techno Electric BUY 40 371 370 -0.3 10.7 16.0 16.8 20.2 12.5 23.2 22.0 18.3 1.5 22.5 18.2 18.0 14.7 7.5 10.2 9.7 10.8
Tega Industries BUY 38 572 700 22.4 16.8 16.5 23.7 27.9 30.1 34.7 24.1 20.5 0.7 21.0 21.7 16.1 13.5 20.7 16.2 19.6 19.4
Timken India BUY 237 3,151 3,700 17.4 19.0 43.5 56.4 67.8 24.9 72.5 55.9 46.5 1.9 93.6 46.2 37.8 31.2 9.8 21.8 23.0 22.8
Thermax SELL 234 1,964 1,800 -8.4 21.1 26.2 36.1 46.0 32.5 75.0 54.5 42.7 1.3 61.0 53.9 38.3 29.5 8.0 9.3 11.9 14.2
Voltas BUY 268 811 1,150 41.8 15.9 15.3 14.4 22.5 21.3 53.0 56.2 36.0 1.7 36.8 33.8 33.5 24.4 11.3 9.6 8.5 12.3

JM Financial Institutional Securities Limited Page 8

INDIA MORNING BRIEF 19 January 2023

Mkt Cap 12M (%) EPS (Rs) EPS Gr (%) PE (x) PEG EV/EBITDA (x) ROE (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY21A FY22A FY23E FY24E 22-24 FY22A FY23E FY24E (x) FY21A FY22A FY23E FY24E FY21A FY22A FY23E FY24E
Infrastructure/Construction
Ashoka Buildcon* BUY 25 88 142 61.6 14.5 14.4 16.9 19.4 16.3 6.1 5.2 4.5 0.3 5.2 4.8 4.0 3.3 13.6 11.9 12.4 12.6
GMR Infrastructure BUY 244 40 41 1.6 -4.6 -1.1 -0.9 0.1 NA NA NA NA NA 65.5 21.4 21.5 12.9 0.0 0.0 0.0 0.0
GR Infraprojects HOLD 116 1,205 1,890 56.9 80.5 76.7 92.6 110.5 20.0 15.7 13.0 10.9 0.5 9.6 9.9 8.2 6.8 24.3 18.7 18.7 18.5
India Grid Trust BUY 98 140 156 11.4 5.8 7.8 8.5 8.1 2.2 18.6 17.1 17.8 8.2 14.4 10.2 10.2 10.3 9.0 10.1 11.7 10.8
KNR Constructions* BUY 76 271 350 29.1 9.8 11.8 18.2 21.7 35.5 22.9 14.9 12.5 0.4 14.0 10.8 8.4 6.7 15.7 16.4 21.0 20.3
PNC Infratech BUY 83 323 380 17.8 14.1 18.5 20.6 23.7 13.3 17.5 15.6 13.6 1.0 11.5 10.1 8.9 7.4 13.3 16.0 15.5 15.4
Larsen & Toubro BUY 3,080 2,191 1,850 -15.6 49.2 61.1 91.6 105.2 31.2 35.9 23.9 20.8 0.7 27.9 23.5 20.0 17.4 9.7 10.8 15.2 16.6
IT Services (Abhishek Kumar, abhishek.kumar@jmfl.com, +91-22-66303053)
HCL Tech HOLD 3,012 1,110 1,190 7.2 53.3 33.1 53.5 61.7 36.5 33.5 20.8 18.0 0.5 12.2 21.1 12.4 11.1 22.7 21.8 23.5 27.3
Infosys HOLD 6,416 1,536 1,590 3.5 45.5 52.4 58.1 62.7 9.4 29.3 26.4 24.5 2.6 22.0 19.8 17.6 15.3 27.3 29.2 32.7 30.3
Tech Mahindra SELL 1,013 1,040 970 -6.7 50.8 62.9 59.5 66.0 2.5 16.5 17.5 15.7 6.3 11.8 12.7 12.2 10.7 19.2 21.5 19.2 19.6
Tata Consultancy HOLD 12,291 3,359 3,320 -1.2 90.9 103.6 115.2 127.4 10.9 32.4 29.2 26.4 2.4 26.1 22.5 19.7 17.5 39.5 42.6 41.4 36.3
Wipro BUY 2,173 397 480 20.9 16.7 22.3 21.2 24.4 4.6 17.8 18.7 16.3 3.6 14.4 11.9 11.3 9.5 17.1 20.2 16.1 15.7
Internet (Swapnil P o tdukhe, swapnil.po tdukhe@jmfl.co m, +91-22-62241876), (Sachin Dixit, sachin.dixit@jmfl.co m, +91-8630513614), (A bhishek Kumar, abhishek.kumar@jmfl.co m, +91-22-66303053)
CarTrade Tech BUY 22 464 740 59.4 20.3 -26.5 6.9 11.2 NA NA 67.0 41.4 NA 40.2 -11.5 37.2 19.7 6.3 NA 1.7 2.7
Easy Trip Planners HOLD 95 55 50 -8.6 2.8 4.9 0.9 1.1 -51.7 11.2 61.5 48.1 NA 12.8 7.4 46.7 35.5 46.2 53.2 51.3 43.9
FSN E-Commerce Ventures BUY 382 134 280 108.8 1.3 0.9 0.2 0.8 -2.7 NA NA NA NA 39.3 36.1 145.1 74.3 15.1 4.4 3.5 15.0
Info Edge India* BUY 479 3,711 5,540 49.3 21.9 689.2 48.6 59.5 -70.6 5.4 76.3 62.4 NA 151.9 95.9 62.4 51.6 8.0 96.3 4.5 5.3
IndiaMART InterMESH BUY 139 4,529 4,940 9.1 94.6 96.8 78.0 100.1 1.7 46.8 58.1 45.2 26.8 33.6 36.8 43.1 31.9 29.7 17.1 12.1 13.8
Just Dial HOLD 54 643 660 2.6 33.3 9.3 15.1 22.7 56.3 69.1 42.7 28.3 0.5 16.5 -495.9 19.3 11.0 16.8 3.0 3.6 5.2
Nazara Technologies SELL 39 595 650 9.2 1.6 4.5 9.2 7.9 32.0 NA 64.6 75.1 2.3 68.0 33.7 28.9 17.2 1.6 3.4 5.6 4.5
PB Fintech BUY 202 449 910 102.7 -4.1 -19.8 -12.6 -3.7 NA NA NA NA NA -91.2 -15.4 -22.4 -53.1 NA NA NA NA
Route Mobile BUY 75 1,199 1,800 50.1 24.2 27.8 40.8 52.4 37.2 43.1 29.4 22.9 0.6 33.8 25.6 16.8 13.0 28.9 14.3 14.7 16.9
Zomato BUY 434 51 126 147.6 -0.9 -2.1 -1.4 -1.1 NA NA NA NA NA -44.0 -13.1 -22.4 -31.1 NA NA NA NA
Metals & Mining (Ashutosh Somani, ashutosh.somani@jmfl.com, +91-22-66303083)
Hindalco Industries BUY 1,084 483 530 9.8 26.0 62.6 54.1 48.4 -12.1 7.7 8.9 10.0 NA 9.0 5.2 5.5 5.9 9.3 19.2 14.3 11.3
Hindustan Zinc BUY 1,468 347 315 -9.4 18.9 23.1 26.1 25.2 4.4 15.0 13.3 13.8 3.2 11.3 7.9 6.9 6.9 24.9 29.3 31.2 27.6
Jindal Steel & Power BUY 596 584 520 -11.0 59.5 81.5 52.5 51.3 -20.7 7.2 11.1 11.4 NA 5.6 4.6 6.5 6.3 19.0 24.7 14.0 12.0
JSW Steel BUY 1,825 755 720 -4.6 33.1 88.6 7.8 40.6 -32.3 8.5 96.8 18.6 NA 11.8 6.1 16.7 8.9 19.2 37.6 2.8 13.4
NMDC HOLD 371 127 104 -17.9 21.3 32.0 14.2 14.0 -33.8 4.0 8.9 9.0 NA 3.8 2.6 5.3 5.3 21.7 28.9 15.4 20.6
SAIL SELL 358 87 65 -25.5 9.9 30.5 2.4 6.0 -55.6 2.8 36.2 14.4 NA 5.8 2.5 7.9 6.1 9.4 25.3 1.8 4.5
Shyam Metalics and Energy Ltd BUY 77 301 410 36.4 33.1 67.6 49.8 54.7 -10.1 4.4 6.0 5.5 NA 5.7 2.9 3.6 2.8 26.1 36.4 19.8 18.2
Tata Steel BUY 1,456 119 140 17.5 7.0 34.4 10.3 10.5 -44.8 3.5 11.6 11.4 NA 7.4 3.1 7.0 6.2 11.8 44.7 10.6 9.9
Media (Manish Agrawal, manish.agrawal@jmfl.com, +91-22-66303068), (Abhishek Kumar, abhishek.kumar@jmfl.com, +91-22-66303053 for Sun, Zee & Saregama)
Inox Leisure BUY 60 489 665 35.9 -29.7 -19.3 16.5 20.7 NA NA 29.6 23.6 NA -32.3 82.1 7.1 5.8 NA NA 25.4 24.8
PVR BUY 102 1,666 2,210 32.7 -104.5 -80.0 12.9 40.9 NA NA NA 40.7 NA -32.6 105.6 9.8 7.4 NA NA 5.6 15.9
Saregama India BUY 68 355 450 26.8 6.5 8.4 8.8 11.0 14.2 42.1 40.4 32.3 2.3 45.9 29.8 28.6 22.1 24.9 16.2 11.8 13.6
Sun TV Network BUY 190 482 760 57.8 38.7 41.7 42.6 52.5 12.2 11.6 11.3 9.2 0.7 8.3 7.0 5.9 4.9 23.9 21.6 19.5 21.4
Zee Entertainment BUY 220 229 370 61.6 12.8 11.9 9.5 12.4 2.1 19.2 24.0 18.5 8.9 11.6 12.3 14.1 11.0 12.7 10.9 8.2 10.0
Oil & Gas (Dayanand Mittal, dayanand.mittal@jmfl.com, +91-9619388870)
Bharat Petroleum BUY 753 347 390 12.2 52.1 49.5 37.6 48.7 -0.9 7.0 9.2 7.1 NA 5.6 6.7 8.2 6.2 24.2 20.0 14.6 17.0
GAIL BUY 641 98 115 17.8 7.3 15.8 10.5 9.8 -21.2 6.2 9.3 10.0 NA 9.4 4.1 6.0 6.4 10.8 20.3 12.0 10.5
Gujarat Gas* BUY 309 449 600 33.7 18.5 18.7 14.0 21.1 6.1 24.0 32.1 21.3 3.5 15.1 15.2 18.8 13.0 32.5 25.4 16.0 20.8
Gujarat State Petro.* BUY 155 274 325 18.6 16.5 17.4 15.2 14.7 -8.1 15.8 18.0 18.7 NA 7.5 7.4 7.5 7.3 13.0 12.2 9.7 8.6
Hindustan Petro. BUY 347 245 260 6.5 73.4 51.4 37.6 59.9 7.9 4.8 6.5 4.1 0.5 4.9 7.8 12.8 6.3 30.9 18.4 12.6 18.6
Indraprastha Gas* BUY 290 415 500 20.7 14.4 18.2 15.8 20.8 6.9 22.8 26.2 20.0 2.9 18.3 14.7 16.5 12.5 18.4 19.9 15.0 17.3
Indian Oil HOLD 1,152 82 80 -1.7 15.5 18.7 10.0 11.0 -23.3 4.4 8.2 7.4 NA 5.3 5.0 7.0 6.6 21.1 21.5 10.4 11.2
Mahanagar Gas BUY 84 851 1,000 17.5 62.7 60.4 71.3 89.7 21.8 14.1 11.9 9.5 0.4 7.9 7.8 6.4 5.1 20.0 17.5 18.6 21.0
ONGC BUY 1,856 148 210 42.2 12.2 37.9 34.7 32.3 -7.7 3.9 4.3 4.6 NA 5.6 3.8 3.6 3.5 7.2 19.8 16.1 13.9
Oil India BUY 245 226 260 14.9 36.7 44.5 60.8 37.3 -8.4 5.1 3.7 6.1 NA 6.9 4.0 3.6 5.8 17.0 17.8 19.9 10.9
Petronet LNG* HOLD 329 219 215 -1.9 19.7 22.3 18.1 23.4 2.3 9.8 12.1 9.4 4.2 5.7 5.2 6.3 4.9 26.1 26.7 19.4 23.0
Reliance Industries BUY 16,658 2,462 2,950 19.8 67.5 85.5 103.1 108.7 12.7 28.8 23.9 22.7 1.8 21.6 17.2 13.5 11.9 7.6 7.8 8.6 8.5

JM Financial Institutional Securities Limited Page 9

INDIA MORNING BRIEF 19 January 2023

Mkt Cap 12M (%) EPS (Rs) EPS Gr (%) PE (x) PEG EV/EBITDA (x) ROE (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY21A FY22A FY23E FY24E 22-24 FY22A FY23E FY24E (x) FY21A FY22A FY23E FY24E FY21A FY22A FY23E FY24E
Pharmaceuticals (Cyndrella Carvalho, cyndrella.carvalho@jmfl.com, +91-22-66303056)
Alembic Pharmaceuticals HOLD 109 552 730 32.2 60.9 35.2 14.0 30.3 -7.3 15.7 39.5 18.2 NA 7.0 12.6 18.4 11.0 28.2 13.4 5.2 10.9
Aster DM Healthcare BUY 112 224 270 20.5 3.0 10.6 8.9 14.5 17.2 21.2 25.1 15.4 0.9 12.5 9.1 8.7 6.9 4.4 14.4 10.6 15.2
Biocon BUY 298 248 395 59.1 6.1 6.3 5.6 11.2 33.0 39.3 44.7 22.2 0.7 19.2 16.6 22.8 12.3 10.2 9.5 6.7 9.4
Cipla HOLD 854 1,058 1,020 -3.6 29.8 32.9 38.1 43.5 15.1 32.2 27.8 24.3 1.6 19.6 18.1 15.7 13.4 14.1 13.5 13.9 14.2
Dr Reddy's Labs BUY 720 4,325 5,960 37.8 151.8 179.5 236.3 295.0 28.2 24.1 18.3 14.7 0.5 18.8 15.3 10.5 9.0 15.3 16.3 18.7 19.6
Dr Lal Pathlabs BUY 178 2,131 2,900 36.1 35.0 41.3 35.5 51.0 11.1 51.5 60.0 41.7 3.8 38.5 31.1 31.6 25.5 25.6 25.0 18.8 23.7
Global Health BUY 120 446 550 23.2 1.1 7.7 8.8 12.4 26.4 57.6 50.5 36.1 1.4 60.8 25.8 21.7 17.8 2.1 13.1 11.6 13.2
Ipca Laboratories BUY 217 855 1,105 29.3 45.0 34.3 26.0 38.9 6.4 24.9 32.8 22.0 3.4 14.0 17.0 19.5 14.0 27.1 17.0 11.6 16.2
Krsnaa Diagnostics BUY 13 424 840 98.3 12.3 21.8 23.3 32.0 21.3 19.5 18.2 13.2 0.6 12.1 8.6 8.7 6.2 NA 14.9 10.1 12.4
Lupin HOLD 343 754 685 -9.1 26.7 27.3 14.1 28.3 2.0 27.7 53.4 26.6 13.4 14.1 16.0 18.6 13.0 9.2 9.6 5.2 10.2
Metropolis Healthcare BUY 70 1,365 1,895 38.8 36.0 38.8 32.2 42.4 4.6 35.2 42.4 32.2 7.1 22.8 20.6 22.4 18.2 29.8 24.9 17.4 19.8
Natco Pharma HOLD 100 547 695 27.1 24.2 24.5 49.6 48.9 41.1 22.3 11.0 11.2 0.3 15.5 36.4 7.5 7.3 11.2 10.7 19.4 16.5
Sun Pharma BUY 2,476 1,032 1,180 14.3 24.7 32.7 37.2 43.8 15.7 31.5 27.8 23.5 1.5 28.8 23.0 20.0 17.1 12.9 16.6 17.5 18.2
Torrent Pharmaceuticals HOLD 535 1,580 1,560 -1.3 37.0 37.3 40.8 51.4 17.5 42.4 38.7 30.7 1.8 22.7 23.4 19.9 16.4 23.5 21.4 22.0 24.1
Vijaya Diagnostics BUY 41 406 505 24.4 8.3 10.9 9.6 12.5 7.3 37.4 42.2 32.5 4.4 24.8 20.0 20.6 16.8 26.8 26.8 19.5 21.7
Zydus Lifesciences BUY 438 432 470 8.7 22.4 20.8 22.7 25.6 10.9 20.8 19.0 16.9 1.5 14.6 14.1 13.1 11.4 19.6 14.2 13.1 13.6
Ports & Logistics (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
Container Corporation* BUY 426 699 860 23.0 10.1 17.4 19.8 24.7 19.1 40.1 35.2 28.3 1.5 35.9 22.6 19.2 15.6 6.1 10.1 10.9 13.0
Gateway Distriparks BUY 34 67 87 29.8 1.9 4.0 4.2 5.0 11.6 16.6 16.0 13.3 1.1 12.2 10.0 9.5 7.8 6.8 13.0 12.4 14.0
Gujarat Pipavav* HOLD 46 95 100 5.7 4.6 4.1 5.8 6.7 28.2 23.3 16.2 14.2 0.5 9.0 9.0 7.7 6.8 10.7 9.7 13.8 15.6
Real Estate (Manish Agrawal, manish.agrawal@jmfl.com, +91-22-66303068)
Brookfield India Real Estate Trust BUY 101 301 340 16.4 0.8 7.3 6.1 8.0 4.6 41.0 49.5 37.4 8.2 NM 24.3 18.1 16.5 0.9 2.9 2.4 3.3
DLF BUY 925 374 465 24.4 5.3 6.2 10.6 12.5 42.1 60.3 35.2 29.9 0.7 67.1 54.1 44.1 39.1 3.7 4.2 6.9 7.7
Godrej Properties SELL 342 1,229 1,195 -2.8 -6.8 12.7 10.7 19.2 NM NM NM NM NM NM NM NM NM NA NM 3.4 5.8
Macrotech Developers BUY 491 1,020 1,425 39.7 10.4 25.0 31.5 32.1 13.4 40.8 32.4 31.7 2.4 49.1 27.3 27.4 23.9 11.0 14.4 12.5 12.0
Mahindra Lifespace Developers# BUY 54 349 475 36.1 -4.7 10.0 9.0 5.5 NM NM NM NM NM NM NM NM NM NM NM NM NM
Mindspace Business Parks REIT## BUY 202 341 375 12.9 5.6 8.6 5.8 12.0 18.3 39.7 58.8 28.4 1.6 29.7 18.6 18.3 14.6 3.6 3.2 2.2 4.8
Oberoi Realty BUY 309 850 1,072 26.1 20.3 28.8 42.2 48.6 30.0 29.5 20.1 17.5 0.6 32.2 27.7 21.3 13.3 8.2 10.6 13.8 14.0
Phoenix Mills BUY 257 1,441 1,645 14.2 3.4 13.3 42.8 44.3 82.5 NA 33.7 32.5 0.4 60.1 40.9 20.6 17.1 1.3 4.1 10.6 9.6
Prestige Estates Projects BUY 178 444 625 40.8 40.1 8.5 10.4 24.9 70.8 52.1 42.6 17.8 0.3 10.0 14.8 13.8 10.0 26.7 4.3 4.4 9.8
Sobha Ltd BUY 56 588 760 29.2 6.6 17.6 22.2 31.7 34.2 33.5 26.5 18.6 0.5 20.5 13.2 14.0 11.7 2.6 7.1 8.4 11.0
Sugar (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
Balrampur Chini* BUY 81 398 465 16.8 23.5 23.9 14.7 29.2 10.5 16.6 27.1 13.6 1.3 12.7 12.4 17.2 8.7 20.0 18.3 10.9 21.0
EID Parry BUY 96 539 490 -9.1 12.5 11.6 14.3 16.5 19.5 47.7 38.7 33.4 1.7 60.3 42.2 34.8 28.8 10.3 7.7 9.0 9.7
Telecom (Dayanand Mittal, dayanand.mittal@jmfl.com, +91-9619388870)
Bharti Airtel BUY 4,409 764 940 23.1 -2.3 6.4 22.7 34.7 132.2 NA 33.7 22.0 0.2 12.5 10.6 9.1 7.9 NA 5.7 17.2 21.4
Indus Towers HOLD 475 176 205 16.0 18.0 23.6 14.6 22.0 -3.6 7.5 12.1 8.0 NA 4.1 3.4 4.2 3.1 32.9 33.5 18.3 27.0
Vodafone Idea SELL 234 7 8 14.5 -8.4 -8.8 -8.2 -6.8 NA NA NA NA NA 11.9 13.3 13.6 11.9 0.0 0.0 0.0 0.0
Utilities (Sudhanshu Bansal, sudhanshu.bansal@jmfl.com, +91-22-66303128)
CESC BUY 97 74 100 36.2 10.0 10.2 10.9 11.3 5.2 7.2 6.8 6.5 1.3 5.8 5.9 5.8 5.5 13.8 13.2 13.2 12.8
Coal India HOLD 1,315 213 240 12.7 22.3 28.5 39.3 35.5 11.6 7.5 5.4 6.0 0.5 5.9 3.9 3.0 3.1 40.0 44.1 47.9 33.9
JSW Energy SELL 441 268 250 -6.6 4.8 10.5 9.8 10.3 -0.8 25.5 27.4 25.9 NA 17.5 14.0 14.5 12.2 6.1 10.8 8.9 8.8
NTPC* BUY 1,623 167 205 22.2 17.0 17.5 17.8 20.8 9.1 9.6 9.4 8.0 0.9 10.1 8.6 8.2 7.5 13.5 13.0 12.3 13.3
Power Grid Corp.* BUY 1,519 218 255 17.0 24.4 20.1 20.5 21.2 2.8 10.8 10.6 10.2 3.7 6.8 7.1 6.6 6.2 18.9 19.2 18.2 17.7
Tata Power HOLD 664 208 220 6.1 4.4 8.0 15.5 14.0 31.9 25.8 13.4 14.8 0.5 13.5 14.8 14.7 13.0 6.2 10.7 17.7 14.7
Torrent Power HOLD 233 484 490 1.3 25.8 28.8 24.0 32.4 6.1 16.8 20.1 15.0 2.5 8.6 8.4 8.0 6.9 12.8 13.7 11.1 13.5
Others (Ashutosh Somani, ashutosh.somani@jmfl.com, +91-22-66303083)
Central Depository Services HOLD 111 1,061 1,230 16.0 19.2 29.8 31.9 35.1 8.5 35.6 33.3 30.2 3.5 48.2 27.3 27.5 24.7 25.0 31.6 28.2 26.8
Gokaldas Exports BUY 23 382 585 53.1 4.3 17.0 22.3 25.3 22.0 22.5 17.1 15.1 0.7 25.8 11.6 8.8 7.4 10.3 21.1 17.4 16.1
Trident Limited BUY 171 34 35 3.4 0.7 1.7 0.6 1.4 -7.8 20.1 55.5 23.6 NA 22.1 11.9 22.6 13.2 10.6 23.2 7.6 16.1
Welspun India BUY 72 73 87 19.4 5.5 6.1 1.4 4.8 -10.9 12.0 50.8 15.1 NA 7.3 7.4 14.1 7.5 16.3 15.8 3.5 11.1
# - Includes dividend to be paid out till March 2023¬ ## -Total Returns – Dividend + Capital Appreciation

JM Financial Institutional Securities Limited Page 10

INDIA MORNING BRIEF 19 January 2023
EPS (Rs) PE (x) PEG P/BV (x) ROE (%)
Company Mkt Cap 12M (%) EPS Gr (%)
Rating (Rs bn) CMP (Rs) TP (Rs) upside FY21A FY22A FY23E FY24E 22-24 FY22A FY23E FY24E (x) FY21A FY22A FY23E FY24E FY21A FY22A FY23E FY24E
Banking & Financial Services*
NBFC (Sameer Bhise, sameer.bhise@jmfl.com, +91 22 66303489)
Aavas Financiers BUY 147 1,865 2,875 54.2 36.9 NA 53.1 NA NA NA 35.1 NA 1.6 6.1 NA 4.6 NA 12.9 NA 13.9 NA
Bajaj Finance BUY 3,616 5,972 9,000 50.7 73.5 116.5 182.0 241.2 43.9 51.3 32.8 24.8 0.6 9.7 8.2 6.8 5.4 12.8 17.4 22.6 24.3
Cholamandalam Invest. & Fin HOLD 564 686 765 11.5 18.5 26.1 30.5 37.2 19.3 26.3 22.5 18.4 1.0 5.9 4.8 4.1 3.4 17.1 20.2 19.6 20.0
HDFC BUY 4,796 2,625 2,755 4.9 66.7 75.8 88.6 101.6 15.8 34.6 29.6 25.8 1.6 4.4 4.0 3.6 3.2 12.3 12.0 12.7 13.1
LIC Housing Finance BUY 216 393 470 19.5 54.2 41.6 59.3 68.4 28.3 9.5 6.6 5.7 0.2 1.0 0.9 0.8 0.7 14.1 10.1 12.5 13.0
L&T Finance Holdings BUY 234 95 115 21.7 3.8 4.2 5.3 11.0 61.3 22.3 17.9 8.6 0.1 1.2 1.2 1.1 1.0 5.7 5.4 6.4 12.2
M&M Financial BUY 283 229 245 6.8 2.7 8.0 10.9 15.6 39.6 28.6 21.1 14.7 0.4 1.9 1.8 1.7 1.5 2.6 6.5 8.3 11.0
PNB Housing Finance BUY 94 558 550 -1.4 55.3 NA 36.6 48.8 NA NA 15.2 11.4 NA 1.1 0.5 1.0 0.9 11.0 13.3 7.4 8.3
Poonawalla Fincorp BUY 226 295 445 50.7 -20.7 4.9 8.0 10.4 45.7 60.2 37.1 28.4 0.6 3.6 0.5 3.4 3.1 NA 13.3 9.6 11.5
Shriram Finance BUY 477 1,273 1,630 28.0 138.2 101.9 109.3 126.8 11.5 12.5 11.6 10.0 0.9 1.5 1.4 1.6 1.4 17.7 13.4 14.1 14.7
NBFC - MFI (Sameer Bhise, sameer.bhise@jmfl.com, +91 22 66303489)
CreditAccess Grameen BUY 136 873 1,175 34.7 8.4 22.9 48.5 68.9 73.4 38.1 18.0 12.7 0.2 3.7 3.4 2.9 2.5 4.1 9.3 17.6 21.2
Fusion Micro Finance BUY 40 397 550 38.5 5.6 2.6 34.7 52.6 347.5 NA 11.4 7.5 0.0 2.5 2.5 1.8 1.5 3.6 1.7 19.3 21.3
Spandana Sphoorty Financial BUY 40 566 735 29.8 20.1 6.8 -4.2 NA NA 83.9 NA NA 0.1 1.3 1.3 1.3 NA 4.8 1.6 NA NA
Fintech (Sameer Bhise, sameer.bhise@jmfl.com, +91 22 66303489)
One 97 Communications BUY 347 535 600 0.1 -28.1 -34.5 -27.5 -17.2 NM NM NM NM NM 4.9 2.6 3.5 4.0 -23.2 -23.2 -15.5 -12.1
Small Finance Bank (Sameer Bhise, sameer.bhise@jmfl.com, +91 22 66303489)
AU Small Finance Bank HOLD 419 629 650 3.4 19.1 17.9 19.9 26.4 21.3 35.0 31.6 23.8 1.1 6.4 5.3 3.9 3.4 22.8 16.6 14.6 15.3
Equitas Small Finance Bank BUY 71 56 65 15.6 3.4 2.2 4.0 6.1 64.4 25.1 14.1 9.3 0.1 1.9 1.7 1.5 1.4 12.5 7.3 11.3 15.6
Ujjivan Small Finance Bank BUY 55 28 34 20.4 0.0 -2.4 4.1 4.7 NA NA 7.0 6.0 NA 1.6 1.9 1.4 1.2 0.3 NA 24.8 21.3
Private Sector Banks (Sameer Bhise, sameer.bhise@jmfl.com, +91 22 66303489)
AXIS Bank BUY 2,820 917 1,000 9.0 21.5 42.4 63.5 78.4 35.9 21.6 14.4 11.7 0.3 2.8 2.4 2.1 1.9 7.1 12.0 15.8 17.0
Bandhan Bank BUY 385 239 325 35.9 13.7 0.8 17.5 31.1 541.7 NA 13.6 7.7 0.0 2.2 2.2 1.9 1.6 13.5 0.7 15.1 22.4
City Union Bank HOLD 119 161 190 17.7 8.0 10.3 12.5 15.8 24.0 15.7 12.9 10.2 0.4 2.0 1.8 1.6 1.4 10.6 12.2 13.2 14.7
DCB Bank HOLD 40 128 125 -2.2 10.8 9.2 14.7 18.4 40.9 13.8 8.7 7.0 0.2 1.1 1.0 0.9 0.9 10.0 7.8 11.4 12.9
HDFC Bank BUY 8,937 1,603 1,840 14.8 56.4 66.7 81.2 77.2 7.6 24.0 19.7 20.7 2.7 4.3 3.7 3.2 2.7 16.6 16.7 17.5 15.9
ICICI Bank BUY 6,038 865 1,025 18.5 23.4 33.6 45.0 51.6 24.0 25.8 19.2 16.8 0.7 4.1 3.6 3.1 2.7 12.6 15.0 17.4 17.4
IndusInd Bank BUY 947 1,221 1,470 20.4 37.9 62.0 98.1 121.9 40.2 19.7 12.5 10.0 0.2 2.2 2.0 1.7 1.5 7.6 10.6 14.9 16.3
Kotak Mahindra Bank BUY 3,565 1,795 2,000 11.4 35.1 43.2 49.1 59.9 17.7 41.6 36.6 30.0 1.7 5.6 5.0 4.4 3.8 12.5 12.7 12.7 13.6
YES Bank HOLD 577 20 16 -20.2 -1.4 0.4 0.4 0.7 26.7 47.1 45.4 29.4 1.1 1.5 1.5 1.4 1.4 NA 3.2 3.4 5.0
SOE BANKS (Sameer Bhise, sameer.bhise@jmfl.com, +91 22 66303489)
Bank of Baroda BUY 962 186 165 -11.3 1.6 14.0 19.0 24.5 32.0 13.2 9.8 7.6 0.2 1.3 1.2 1.1 1.0 1.2 9.7 11.9 13.8
Canara Bank BUY 588 324 280 -13.6 15.5 31.3 51.4 64.3 43.4 10.4 6.3 5.0 0.1 1.1 1.0 0.9 0.8 5.4 10.5 15.2 16.8
Punjab National Bank HOLD 646 59 45 -23.3 1.9 3.1 4.0 5.8 36.2 18.7 14.6 10.1 0.3 0.7 0.7 0.7 0.7 2.5 4.0 4.9 6.8
State Bank of India BUY 5,364 601 675 12.3 22.9 35.5 43.1 59.7 29.7 16.9 13.9 10.1 0.3 2.3 2.1 1.9 1.6 9.3 13.0 14.1 17.2
Mkt Cap 12M (%) Embedded Value@ (INRbn) EV Gr (%) P/EV (x) PEG P/BV (x) ROE$ (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside 22-24
FY21A FY22A FY23E FY24E FY22A FY23E FY24E (x) FY21A FY22A FY23E FY24E FY21A FY22A FY23E FY24E
Insurance (Akshay Jain, akshay.jain@jmfl.com, +91-22-66303099)
HDFC Life Insurance BUY 1,295 602 780 29.5 266.2 300.5 397.9 471.4 21.0 4.3 3.3 2.7 NA NA NA NA NA 18.5 16.6 18.4 18.0
ICICI Prudential Life BUY 681 473 600 26.8 291.1 316.3 359.0 411.3 12.2 2.2 1.9 1.7 NA NA NA NA NA 15.2 11.0 15.4 15.6
Life Insurance Corporaion BUY 4,472 707 940 33.0 956.1 5,414.9 6,016.4 6,687.9 91.3 0.8 0.7 0.7 NA NA NA NA NA NA 11.9 10.6 10.7
SBI Life Insurance BUY 1,301 1,300 1,600 23.1 345.9 396.0 464.5 572.1 18.3 3.3 2.8 2.3 NA NA NA NA NA 19.7 16.4 20.9 21.7
ICICI Lombard General Insurance BUY 616 1,254 1,530 22.1 81.2 94.7 152.3 171.2 28.3 NA NA NA NA 7.6 6.5 4.0 3.6 20.4 15.4 14.8 15.2
Mkt Cap 12M (%) EPS P/E P/B PAT/ Avg AUM Price / AUM
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY21A FY22A FY23E FY24E FY22A FY23E FY24E FY21A FY22A FY23E FY24E FY22A FY23E FY24E FY22A FY23E FY24E
Asset Management (Sameer Bhise, sameer.bhise@jmfl.com, +91 22 66303489), (UTIAMC - Akshay Jain, akshay.jain@jmfl.com, +91-22-66303099)
HDFC AMC BUY 445 2,085 2,550 22.3 62.3 65.3 70.3 76.8 31.9 29.7 27.1 9.3 8.0 7.3 6.6 0.35% 0.35% 0.34% 10.9% 10.1% 8.5%
Nippon Life India AMC# BUY 156 251 340 35.7 11.1 12.1 13.3 15.5 20.6 18.8 16.2 4.9 4.4 4.3 3.9 0.30% 0.28% 0.28% 5.6% 5.0% 4.2%
UTI AMC# BUY 103 811 1,100 35.6 39.0 42.1 51.5 62.5 19.3 15.8 13.0 3.2 2.9 2.6 2.4 0.27% 0.27% 0.28% 4.7% 4.0% 3.3%
*- Standalone Numbers, # - Consol Numbers, NP - Not Published, $ - Operating RoEV for Life Ins., @ - Book value for ICICI Lombard

JM Financial Institutional Securities Limited Page 11

INDIA MORNING BRIEF 19 January 2023

APPENDIX I

JM Financial Institutional Securities Limited

Corporate Identity Number: U67100MH2017PLC296081
Member of BSE Ltd., National Stock Exchange of India Ltd. and Metropolitan Stock Exchange of India Ltd.
SEBI Registration Nos.: Stock Broker - INZ000163434, Research Analyst – INH000000610
Registered Office: 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025, India.
Board: +9122 6630 3030 | Fax: +91 22 6630 3488 | Email: jmfinancial.research@jmfl.com | www.jmfl.com
Compliance Officer: Mr. Sunny Shah | Tel: +91 22 6630 3383 | Email: sunny.shah@jmfl.com

Definition of ratings
Rating Meaning
Buy Total expected returns of more than 10% for large-cap stocks* and REITs and more than 15% for all other stocks, over the next twelve
months. Total expected return includes dividend yields.
Hold Price expected to move in the range of 10% downside to 10% upside from the current market price for large-cap* stocks and REITs and
in the range of 10% downside to 15% upside from the current market price for all other stocks, over the next twelve months.
Sell Price expected to move downwards by more than 10% from the current market price over the next twelve months.
* Large-cap stocks refer to securities with market capitalisation in excess of INR200bn. REIT refers to Real Estate Investment Trusts.

Research Analyst(s) Certification

The Research Analyst(s), with respect to each issuer and its securities covered by them in this research report, certify that:

All of the views expressed in this research report accurately reflect his or her or their personal views about all of the issuers and their securities; and

No part of his or her or their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this research report.

Important Disclosures

This research report has been prepared by JM Financial Institutional Securities Limited (JM Financial Institutional Securities) to provide information about the
company(ies) and sector(s), if any, covered in the report and may be distributed by it and/or its associates solely for the purpose of information of the select recipient
of this report. This report and/or any part thereof, may not be duplicated in any form and/or reproduced or redistributed without the prior written consent of JM
Financial Institutional Securities. This report has been prepared independent of the companies covered herein.

JM Financial Institutional Securities is registered with the Securities and Exchange Board of India (SEBI) as a Research Analyst and a Stock Broker having trading
memberships of the BSE Ltd. (BSE), National Stock Exchange of India Ltd. (NSE) and Metropolitan Stock Exchange of India Ltd. (MSEI). No material disciplinary action
has been taken by SEBI against JM Financial Institutional Securities in the past two financial years which may impact the investment decision making of the investor.

JM Financial Institutional Securities renders stock broking services primarily to institutional investors and provides the research services to its institutional
clients/investors. JM Financial Institutional Securities and its associates are part of a multi-service, integrated investment banking, investment management,
brokerage and financing group. JM Financial Institutional Securities and/or its associates might have provided or may provide services in respect of managing
offerings of securities, corporate finance, investment banking, mergers & acquisitions, broking, financing or any other advisory services to the company(ies) covered
herein. JM Financial Institutional Securities and/or its associates might have received during the past twelve months or may receive compensation from the
company(ies) mentioned in this report for rendering any of the above services.

JM Financial Institutional Securities and/or its associates, their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell
the securities of the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation
or act as a market maker in the financial instruments of the company(ies) covered under this report or (c) act as an advisor or lender/borrower to, or may have any
financial interest in, such company(ies) or (d) considering the nature of business/activities that JM Financial Institutional Securities is engaged in, it may have
potential conflict of interest at the time of publication of this report on the subject company(ies).

Neither JM Financial Institutional Securities nor its associates or the Research Analyst(s) named in this report or his/her relatives individually own one per cent or
more securities of the company(ies) covered under this report, at the relevant date as specified in the SEBI (Research Analysts) Regulations, 2014.

The Research Analyst(s) principally responsible for the preparation of this research report and members of their household are prohibited from buying or selling
debt or equity securities, including but not limited to any option, right, warrant, future, long or short position issued by company(ies) covered under this report. The
Research Analyst(s) principally responsible for the preparation of this research report or their relatives (as defined under SEBI (Research Analysts) Regulations, 2014);
(a) do not have any financial interest in the company(ies) covered under this report or (b) did not receive any compensation from the company(ies) covered under
this report, or from any third party, in connection with this report or (c) do not have any other material conflict of interest at the time of publication of this report.
Research Analyst(s) are not serving as an officer, director or employee of the company(ies) covered under this report.

While reasonable care has been taken in the preparation of this report, it does not purport to be a complete description of the securities, markets or developments
referred to herein, and JM Financial Institutional Securities does not warrant its accuracy or completeness. JM Financial Institutional Securities may not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. This report is provided for
information only and is not an investment advice and must not alone be taken as the basis for an investment decision.

JM Financial Institutional Securities Limited Page 12

INDIA MORNING BRIEF 19 January 2023
The investment discussed or views expressed or recommendations/opinions given herein may not be suitable for all investors. The user assumes the entire risk of
any use made of this information. The information contained herein may be changed without notice and JM Financial Institutional Securities reserves the right to
make modifications and alterations to this statement as they may deem fit from time to time.

This report is neither an offer nor solicitation of an offer to buy and/or sell any securities mentioned herein and/or not an official confirmation of any transaction.

This report is not directed or intended for distribution to, or use by any person or entity who is a citizen or resident of or located in any locality, state, country or
other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject JM Financial Institutional
Securities and/or its affiliated company(ies) to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be
eligible for sale in all jurisdictions or to a certain category of investors. Persons in whose possession this report may come, are required to inform themselves of and
to observe such restrictions.

Additional disclosure only for U.S. persons: JM Financial Institutional Securities has entered into an agreement with JM Financial Securities, Inc. ("JM Financial
Securities"), a U.S. registered broker-dealer and member of the Financial Industry Regulatory Authority ("FINRA") in order to conduct certain business in the United
States in reliance on the exemption from U.S. broker-dealer registration provided by Rule 15a-6, promulgated under the U.S. Securities Exchange Act of 1934 (the
"Exchange Act"), as amended, and as interpreted by the staff of the U.S. Securities and Exchange Commission ("SEC") (together "Rule 15a-6").

This research report is distributed in the United States by JM Financial Securities in compliance with Rule 15a-6, and as a "third party research report" for purposes
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