Strategy - Kotak - 12th Oct

Company Report
Strategy INDIA
INDIA
October 05, 2016
BSE-30: 28,221
CPI inflation: 5.05%
September 2016 quarter earnings preview. We expect net profits of the KIE US$/INR: 66.5
universe to increase 15.3% yoy, led by sharp increase in profits of downstream oil
companies. We expect yoy growth in net income of automobile, cement, consumer
products and industrials sectors. We see banking sector dragging overall earnings as
companies in the sector are likely to make high provisions for bad loans. We expect
net profit of the BSE-30 Index to grow 4% yoy. Excluding banking companies, we
expect net income to grow 9.8% yoy. We have prepared our estimates under Ind-AS,
though 2QFY16 results are under I-GAAP. We calculate BSE-30 Indexs FY2017E EPS
at 1,479 and FY2018E EPS at 1,792. Our Nifty Index EPS estimates for FY2017E
and FY2018E are 446 and 539.
We expect the net income of the KIE universe to grow 15.3% yoy
Sector-wise earnings of the KIE universe
Sales growth (%) EBITDA growth (%) PAT growth (%) EBITDA margin (%)
yoy qoq yoy qoq yoy qoq Sep-15 Jun-16 Sep-16E
Automobiles 11.3 5.1 18.2 11.4 35.4 20.4 13.1 13.1 13.9
Banks/Financial Institutions 6.0 3.5 3.5 7.0
Cement 6.4 (4.7) 42.3 (8.4) 87.3 (12.0) 15.7 21.8 21.0
Consumer Products 7.8 1.7 10.9 0.4 11.5 2.1 20.6 21.5 21.2
Energy 0.3 4.7 36.5 (23.0) 47.6 (26.5) 9.2 17.0 12.5
Industrials 6.6 10.8 28.0 29.5 81.3 46.2 8.1 8.3 9.7
Infrastructure 2.9 (1.7) 4.0 0.1 3.7 (12.8) 39.5 39.2 39.9
Internet 13.4 4.8 16.8 10.8 (4.3) (7.8) 21.2 20.6 21.8
Media 12.5 (0.6) 17.9 2.2 12.6 (2.5) 30.9 31.6 32.4
Metals & Mining (4.7) 3.9 12.7 (5.5) (2.3) (7.5) 15.8 20.5 18.7
Others 14.1 (1.2) 14.5 (27.0) 28.4 (42.4) 13.2 17.9 13.2
Pharmaceuticals 10.0 0.5 3.7 (4.6) 1.9 (11.1) 25.8 25.6 24.3
Real estate (21.9) 0.8 (20.8) 3.9 (19.5) (32.9) 31.0 30.5 31.4
Technology 9.1 1.0 3.4 1.2 0.5 (2.0) 24.8 23.4 23.5
Telecom 2.5 (3.6) 5.1 (5.5) (16.1) (3.4) 32.9 34.4 33.7
Utilities 3.2 (0.5) 15.5 2.5 5.6 5.5 36.9 40.0 41.2
KIE universe 4.0 3.1 16.5 (6.2) 15.3 (5.7) 15.0 18.5 16.8
KIE universe (ex-energy) 5.7 2.5 11.7 0.3 9.0 1.8 17.7 19.1 18.7
KIE universe (ex-banks) 3.9 3.1 16.5 (6.2) 18.8 (8.6) 16.2 20.0 18.2
Source: Kotak Institutional Equities estimates

Sanjeev Prasad
sanjeev.prasad@kotak.com
Mumbai: +91-22-4336-0830
We expect the net income of the BSE-30 Index to increase 4% yoy Sunita Baldawa
Sector-wise earnings of the BSE-30 Index sunita.baldawa@kotak.com
Sales growth (%) EBITDA growth (%) PAT growth (%) EBITDA margin (%)
Mumbai: +91-22-4336-0896
yoy qoq yoy qoq yoy qoq Sep-15 Jun-16 Sep-16E
Automobiles 14.2 6.0 23.2 14.1 43.0 27.9 13.1 13.1 14.1
Anindya Bhowmik
Banking 7.0 1.6 (15.2) (1.3)
anindya.bhowmik@kotak.com
Consumers 5.3 (1.5) 6.9 (1.4) 5.9 0.0 27.0 27.4 27.4
Mumbai: +91-22-43360897
Energy (7.5) 7.9 (1.1) (4.0) 3.2 (6.9) 22.1 26.6 23.6
Industrials 6.7 14.1 7.2 45.8 76.1 98.3 11.1 8.7 11.1
Infrastructure 2.8 3.7 (0.2) 2.8 5.2 (16.0) 65.4 64.0 63.5
Metals & Mining (8.9) (2.1) 13.9 (28.6) 8.5 (32.4) 9.3 16.0 11.6
Pharmaceuticals 10.9 (0.1) 10.1 (5.0) 15.3 (10.8) 25.6 26.7 25.4
Technology 8.7 0.7 2.4 1.8 (0.1) (1.1) 27.0 25.2 25.4
Telecom 1.7 (5.1) 9.6 (5.5) 23.8 5.0 34.5 37.4 37.2
Utilities 6.3 (3.9) 27.3 (0.6) 0.8 (2.1) 36.1 41.8 43.2
BSE-30 Index 3.7 3.1 9.2 (0.7) 4.0 (0.8) 19.1 20.9 20.1
BSE-30 Index (ex-energy) 6.8 1.9 12.8 0.3 4.2 0.9 18.3 19.6 19.3
BSE-30 Index (ex-banks) 3.4 3.2 9.2 (0.7) 9.8 (0.7) 20.6 22.7 21.8 Kotak Institutional Equities
Research
Source: Kotak Institutional Equities estimates Important disclosures appear

at the back
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India Strategy
TABLE OF CONTENTS
Sector-wise expectations............................................................................................ 3
Automobiles................................................................................................................ 7
Banking....................................................................................................................... 9
Cement...................................................................................................................... 12
Consumers................................................................................................................ 13
Energy....................................................................................................................... 17
Industrials.................................................................................................................. 18
Infrastructure............................................................................................................. 20
Internet.. 21
Media........................................................................................................................ 21
Metals & mining........................................................................................................ 22
Others....................................................................................................................... 23
Pharmaceuticals......................................................................................................... 25
Real estate................................................................................................................. 27
Technology................................................................................................................ 27
Telecom..................................................................................................................... 29
Utilities...................................................................................................................... 29
Disclosures................................................................................................................. 36
Sanjeev Prasad Kawaljeet Saluja Rohit Chordia

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

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

(Automobiles) (Banking) (Industrials, Infrastructure)
hitesh.goel@kotak.com mb.mahesh@kotak.com harish.bihani@kotak.com
Tarun Lakhotia Samar Sarda Suvodeep Rakshit

(Energy) (Real Estate) (Economy)
tarun.lakhotia@kotak.com samar.sarda@kotak.com suvodeep.rakshit@kotak.com
Abhishek Poddar Sunita Baldawa Aditya Mongia

(Cement, Metals) (Strategy, Database) (Industrials, Infrastructure)
abhishek.poddar@kotak.com sunita.baldawa@kotak.com aditya.mongia@kotak.com
Anand Shah Jaykumar Doshi Mohan Lal

(Consumer products) (Media, Technology) (Mid-cap)
anand.shah@kotak.com jaykumar.doshi@kotak.com mohan.l@kotak.com
Nishit Jalan Garima Mishra Simran Kaur

(Automobiles) (e-commerce) (Energy, Textiles)
nishit.jalan@kotak.com garima.mishra@kotak.com Kaur.Simran@kotak.com
Kumar Gaurav Abhas Gupta Abhijeet Sakhare

(Pharmaceuticals) (Consumer products, Telecom) (Banking, NBFC)
Kumar.G@kotak.com abhas.gupta@kotak.com abhijeet.sakhare@kotak.com
Ajinkya Bhat Anindya Bhowmik (Research, KIE)

(Industrials, Infrastructure, Utilities) (Strategy, Database)
ajinkya.bhat@kotak.com Anindya.Bhowmik@kotak.com
The prices in this report are based on the market close of October 5, 2016.
2 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Strategy India
SECTORS-WISE EXPECTATIONS
Exhibit 1: A yoy increase in the net income of automobiles, cement, consumer products, energy and industrials sectors
Sector-wise expectations for the September 2016 quarter results
Key points Key points
Automobiles We expect auto companies under our coverage universe to report 35% yoy We expect a strong quarter particularly from Eicher Motors, Hero Motocorp,
growth in net profits, led by 11% yoy revenue growth and 90 bps yoy expansion Maruti Suzuki, Tata Motors and TVS Motors.
in EBITDA margin. Strong growth in net profit is partly led by sharp improvement
in consolidated profit of Tata Motors due to low base (+76% yoy).
Banks/Financial Banks: Earnings will likely decline 15% yoy as banks will likely make high NBFCs: We expect NBFCs to deliver qoq stable trends in growth and profitability.
Institutions provisions for bad loans. We see public banks reporting lower slippages qoq, but Most NBFCs are looking forward to 2HFY17 with optimism although they have
high provisions will continue, while Axis/ICICI Bank will likely see very weak not seen much of a pick up during 2QFY17. We do not see significant change in
results on slippages. Large treasury gains will be primarily used to improve NIM qoq (baring seasonal variations) as gradual re-pricing down of liabilities is
coverage. getting passed on as well in the form of lower yields. The decline in yields should
be visible in 2H.
Cement All-India cement prices increased by Rs9/bag qoq in 2QFY17, led by (a) higher After sharp increase in cement prices in 1QFY17 in north & central regions,
prices in north & central regions (+Rs10/bag to +Rs16/bag qoq), and (b) strong another round of price increase in 2QFY17 will favor earnings of regional names
rebound in Andhra Pradesh & Telangana region where prices increased by including Shree Cement, JK Cement and JK Lakshmiwe estimate EBITDA
Rs48/bag qoq. Prices were broadly flat qoq in east, west regions but weaker in increase of 70-100% yoy for these regional names. Regional companies will also
some of the southern states such as Karnataka and Tamil Nadu. Costs are likely benefit from higher-than-industry volume growth due to the ramp-up of expanded
to increase due to increase in pet-coke prices since March 2016, though we build capacities. Among pan-India names, we expect EBITDA growth of 30-60% yoy,
in some cushion assuming usage of carry-over of low-priced inventory. Cement led by strong prices in north, central region and states of AP, Telangana. We
volume growth (per DIPP) moderated to 2% yoy for July-August 2016 from 5.7% expect subdued quarter for India Cements (-24% yoy) due to lower volume base,
in 1QFY17 owing to good monsoonswe expect weak growth for pan-India increase in fuel costs and weak prices in some southern states.
companies and certain regional names.
Consumer For 2QFY17, we estimate aggregate revenue growth for KIE consumer universe to ITC: We expect cigarette volumes to grow 4% yoy driving a moderate 10% yoy
products inch up a tad to 10% yoy, led by price hikes across several categories and pickup growth in cigarette EBIT; we model 10.5% yoy revenue growth in FMCG
in discretionary revenues ahead of the festive season (strong growth in paints; business.
jewelry led by higher gold prices). We model 30 bps yoy aggregate GM HUVR: We model 5% domestic FMCG sales growth led by 3% UVG and 2%
expansion (significantly lower versus 140-260 bps expansion witnessed over past price-led growth; we have modeled 6.5% and 3% yoy growth in core home care
six quarters). We expect EBITDA and PAT growth of 13% for our consumer and personal care segment respectively (latter dragged by volume weakness in
universe (ex-Nestle/ITC) aided by modest pickup in revenue growth, sustained soaps).
benefits of RM tailwinds (though pace of benefits has narrowed significantly) and We expect Titan, TGBL, APNT, UB, GCPL and Page to post strong net profit
lower A&SP (aggregate A&SP spends to remain flattish yoy). growth while JYL, BJCOR, CLGT, BRIT, BJCOR and HUVR are likely to post
relatively muted net profit growth (single-digit growth).
Energy Upstream: We expect OIL and ONGC to report modest qoq decline in EBITDA Downstream: We expect OMCs to report sequentially lower net income
despite steady volumes and realizations, reflecting increase in operating costs reflecting lower refining margins and lack of adventitious gains that boosted
from the previous quarter. We expect GAIL to report steady EBITDA qoq, as lower 1QFY17 results. We expect RIL to report sequential decline in profitability led by
contribution from gas trading and LPG segments will likely be offset by higher weaker refining margins, partially offset by an improvement in petchem margins
contribution from petchem and gas transmission segments. and higher refining and petchem volumes.
Industrials L&T is likely to report modest consolidated E&C sales growth and higher yoy Construction: SELs (standalone) revenues and earnings may decline moderately
EBITDA margin. BHEL's revenues may start stabilizing yoy with backlog decline given the limited backlog and high base, while that of IRB would improve on the
having been arrested and execution on some stalled projects likely to start. recent project wins entering the phase of faster execution.
Overall sector earnings and order inflow/backlog position may remain lackluster Infrastructure: For Concor, container volumes may strengthen on recent
(excluding L&T) and management commentary is likely to be cautiously commissioning of the Kathuwas terminal; margins may remain weak. For Adani
optimistic. Ports, new ports would continue to drive revenue growth. For GPPV, new services
would lead to modest qoq growth in container volumes; margin may remain
weak on pricing pressure from shipping lines.
Internet We expect Just Dial's growth trajectory to remain weak given weakness in core
business (particularly weak realizations) as well as Omni (sales were stopped
during 2Q). We expect steady revenue growth for INFOE, led by 18% yoy growth
in the recruitment business. Our EBITDA forecasts now include the impact of
higher ESOP charges (post Ind-AS).
Media Broadcasting and distribution:We expect a robust 15% yoy growth in Zees ad Print media: We expect DB Corp. to report 10% yoy growth in print ad revenues
revenues, led by market share gains in select regional genres. Zees EBITDA partly aided by low base. We expect Jagran to deliver 8% growth in print ad
margin will improve 380 bps yoy to 29.4%. We estimate 6% yoy growth in Sun revenues. We expect EBITDA margin to be flat for Jagran and expand for DB Corp
TVs ad revenues (versus 2.7% decline in June quarter) led by some recovery in on healthy ad revenue growth and muted increase in operating expenses.
ratings of Telugu and Malayalam GECs. For Dish TV, we expect 350,000 net Multiplex industry: Sep quarter Box Office collections growth was muted due
subscriber additions, marginal increase in ARPU (qoq) and 80 bps expansion in high base and weak performance of select movies. We estimate (1) 1.5% yoy
EBITDA margin (qoq). decline in footfalls to 18.5 mn despite addition of 29 screens of DT cinemas
(consolidated from June 2016). Comparable properties footfalls will be down
15%, (2) about 6% and 14% yoy growth in average ticket price and F&B spends
per head and (3) about 20% growth in ad revenues. EBITDA margin would be
down 270 bps yoy to 16.4% largely due to 500 bps decline in occupancy to
about 32%.
KOTAK INSTITUTIONAL EQUITIES RESEARCH 3

India Strategy
A yoy increase in the net income of automobiles, cement, consumer products, energy and industrials sectors
Sector-wise expectations for the September 2016 quarter results
Key points Key points
Metals Ferrous: Post strong improvement in 1QFY17 earnings of steel companies aided Non-ferrous: Zinc prices increased by 17% qoq to US$2,253/ton (+22% yoy) due
by MIP, we expect sequential decline due to (a) 2-6% decline in domestic steel to weak global supplies while aluminum prices increased by 3% qoq to
prices in a seasonally weak period, and (b) sharp increase in spot coking coal US$1,620/ton (+2% yoy) in 2QFY17. Higher prices combined with increase in
prices towards August-September 2016. We expect blended realization for large- mined metal volumes (+42% qoq) will aid strong sequential improvement in
cap. steel names to decline by Rs1,200-1,500/ton depending upon their product earnings for Hindustan Zinc (+51% qoq, -21% yoy) and Vedanta (+19% qoq, flat
mix. The impact of coking coal cost increase will be limited due to carry-over of yoy)Vedanta will also benefit from ramp-up of aluminum, power volumes. We
low-priced inventories and purchases on quarterly contractsthough a higher expect 15% qoq increase in Hindalco's EBITDA (standalone) led by higher
contract price for 3QFY17 will impact margins later. We expect EBITDA for Tata aluminum prices (+3% qoq) and higher volumesour estimates also assume
Steel and JSW Steel to decline by 6-12% qoq. We estimate net income hedging gains for aluminum operations. We estimate Nalco's EBITDA to increase
(adjusted) of Rs 2.5 bn and Rs8.2 bn for Tata Steel and JSW Steel compared to 23% qoq due to higher alumina shipments even as lower alumina realizations
Rs3.2 bn and Rs11 bn in 1QFY17. NMDC will report another subdued quarter due (-9% qoq) will partially offset the gains.
to weak iron ore prices (EBITDA: -18% yoy).
Pharmaceuticals We expect domestic formulations growth to be strong across the industry. We We expect the sector's EBITDA margins to come under pressure on a sequential
expect US to be under pressure as lack of meaningful approvals, competition in basis due to a combination of reducing contribution from exclusivities and
existing products and FDA issues for certain companies will impact growth. Cipla increasing R&D costs. SUNP's EBITDA margin is likely to stabilize at around
will be the biggest beneficiary of new launches though we expect the full impact 31.5% (excluding other income), while LPCs EBITDA margin (excluding other
of recent launches in 2HFY17, while we expect SUNP and LPC to continue to operating income) should also remain strong at ~27%. We expect Cipla's EBITDA
benefit from Gleevec and Glumetza exclusivities respectively though we expect margins to remain stable at 17.3% as incremental benefit from US launches is
the contribution from these products to substantially decline on a qoq basis. We offset by increase in R&D costs. On our estimates, DRRD will have the lowest
expect DRRD and TRP to struggle in the US, as both continue to grapple with a EBITDA margins amongst peers in 2QFY17, and despite a sequential recovery, we
portfolio mix, with limited new launches to offset the decline in existing key expect margins to only recover to 16.6%.
products.
Real estate Financials: Liquidity remains weak for the sector despite a lot of capital chasing Operations: 2Q is a seasonally weak quarter. Heavy rains are expected to result
select developers (listed and unlisted). In the listed space, excluding DLF, we do in lower sales in Mumbai and Pune. Mumbai has witnessed sales slowing since
not expect major debt increase for the real estate developers. Ind-AS changes April 2016, unlike FY2015 and FY2016 being growth years on absolute volumes.
remain a challenge for companies to incorporate fully. 2QFY17 will see balance Strikes, political issues and resultant negative sentiment is likely to result in
sheet disclosures; however, off-balance sheet debt (JVs and associates) remains slower sales in August and September and affect 2QFY17 results for Bangalore-
a challenge, unless disclosed by developers. based developers. NCR continues its weak performance.
Technology 2QFY17 will be the weakest September quarter for Indian IT in the past eight Slowdown in growth rate and strong Rupee will lead to toning down of margin
years. We expect tier-1 IT to report c/c revenue growth rate of 0.5-3% qoq. We expectations by companies. Infosys will likely guide for margins at the lower end
forecast cross-currency headwind of 50-100 bps for tier-1 IT due to depreciation of the band of 24-26% and TCS will guide for FY2017 EBIT margin below the 26-
of GBP partly offset by appreciation of JPY, AUD and EUR against USD. Infosys 28% range. September quarter is characterized by sequential recovery in margins
would lead the pack with c/c growth of 3% followed by HCLT (2.6%) and TCS for several players following wage-hike and visa cost-led margin drop in the June
(2.4%) and Wipro (0.5%). Growth will be impacted by broad-based weakness in quarter. This trend will continue for Infosys and TCS, but the extent of the
BFSI, weak healthcare and delays in projects across many clients. Growth verticals sequential recovery will be muted given cross currency headwinds, marginal
will vary across players and will largely be an imprint of recent deals wins/wallet appreciation in rupee and weak growth. We expect 40-50 bps improvement in
share gain. We expect some cut in growth guidance, partly baked in the Streets margins of Infosys and TCS. HCLT and Wipros margins will decline 100-120 bps
and our estimates. largely due partial impact of wage hike over and above cross currency headwinds.
Tech Mahindras margins will decline marginally due to one-off restructuring costs
associated with largely onsite-centric employee separations. We expect
companies to moderate margin guidance.
Telecom We expect Bhartis India wireless revenue to decline 2.4% qoq (impact of Bhartis India wireless voice volumes are expected to decrease 3% qoq while
seasonality) and grow 7.3% yoy to Rs146.5 bn; this yoy revenue growth would increasing 8.2% yoy, voice realizations are expected to decline to 32.8p in
largely be driven by strong growth in data business, while voice is expected to be 2QFY17 versus 33.5p in 1QFY17. For Idea, we expect voice volumes to decline
flat. Ideas revenue is expected to decline 3.4% qoq and increase 5.4% yoy to 3.5% qoq and 1.5% yoy, while realizations are expected to decline to 33.4p from
Rs91.6 bn. Bhartis India wireless EBITDA is expected to decline 4.1% qoq but 34.3p in the previous quarter. On data, we expect Bharti to report sub-30% yoy
increase 16.5% yoy; yoy growth is expected to be driven by greater operating growth in revenues driven by close to 50% volume growth and close to 4p
leverage driven by increasing data revenues and decreasing ICR costs; this is decline in data realizations. Ideas data revenue growth is expected to be closer
expected to drive a 300 bps margin expansion yoy. Bhartis consolidated EBITDA to 15%, driven by about 40% data volume growth and 4p dip in realizations. We
however, is expected to grow slower at 9.6% yoy driven by weakness in Africa. expect BHIN to also report a soft quarter driven by subdued increase in tenancies
Ideas consolidated EBITDA is expected to decline 10.5% qoq and 10% yoy, as operators are expected to delay site rollouts to post-auctions. We expect qoq
driven by lower overall revenue growth, while costs are expected to increase with tenancy growth of 1.1%, overall revenue growth of 1.3% and qoq overall EBITDA
increasing site rollouts. growth of 2.4% driven largely by better energy margins.
Utilities Modest demand and contribution from hydro capacities will impact capacity JSW Energy's standalone earnings will be impacted by a sharp drop in capacity
utilization of coal-based capacities. Rising coal prices, both domestic as well as utilization of its Vijaynagar facility, although contribution from acquired hydro
imported, will further weigh on earnings of players operating under the capacities (not in the base period) during the peak generation season will help
competitive-bid and/or merchant sales route. NTPCs reported earnings will show compensate the weakness in Vijaynagar in consolidated earnings.
a decline on account of lower effective tax rate during the same period last year
while Powergrid will continue to report strong earnings growth based on strong
asset capitalization of preceding twelve months.

20
40
10
30
10
40
50
60
20
30
0
(20)
(10)
30
40
50
10
20
(20)
(10)
0
(20)
(10)
Sep-07 Sep-07 Sep-07
Strategy
Dec-07 Dec-07 Dec-07

Mar-08 Mar-08 Mar-08
Jun-08 Jun-08 Jun-08
KOTAK INSTITUTIONAL EQUITIES RESEARCH


Adjusted earnings growth of BSE-30 Index (%)

Sensex earnings growth (%)
Mar-13 Mar-13
Exhibit 2: We expect the net income of the BSE-30 Index to increase 4% yoy in 2QFY17
Mar-13
Sensex earnings growth ex-energy (%)

Sensex earnings growth ex-energy ex-banks (%)

(2.4)
1.6

7.5

(1.5)
Sep-16E Sep-16E
5
Sep-16E
4.2
12.3
4.0
India
India Strategy
Exhibit 3: Sector-wise net income of companies in the KIE universe (` bn)
Net sales EBITDA PAT

Company (#) Sep-15 Jun-16 Sep-16 (E) Sep-15 Jun-16 Sep-16 (E) Sep-15 Jun-16 Sep-16 (E)
Automobiles (18) 1,280 1,355 1,425 167 178 198 74 83 100
Banks/Financial Institutions (31) 652 668 691 199 192 206
Cement (10) 248 277 264 39 61 55 14 29 26
Consumer Products (24) 457 485 493 94 104 105 62 68 69
Energy (13) 2,839 2,719 2,846 261 464 357 139 279 205
Industrials (11) 428 411 456 34 34 44 13 16 23
Infrastructure (7) 61 64 63 24 25 25 11 14 12
Internet (2) 3 4 4 1 1 1 1 1 1
Media (7) 42 48 47 13 15 15 7 8 8
Metals & Mining (9) 951 873 907 150 179 169 65 68 63
Others (13) 155 179 177 20 32 23 9 19 11
Pharmaceuticals (9) 220 241 242 57 62 59 35 40 35
Real estate (5) 52 40 40 16 12 13 5 5 4
Technology (8) 756 818 825 187 192 194 147 150 147
Telecom (4) 407 433 417 134 149 141 22 19 18
Utilities (8) 396 411 409 146 165 169 59 59 62
KIE universe 8,949 9,024 9,307 1,345 1,671 1,568 859 1,051 990
KIE universe (ex-energy) 6,110 6,305 6,461 1,084 1,207 1,211 720 772 785
Exhibit 4: Sector-wise net income of companies in the BSE-30 Index (` bn)

Automobiles (5) 970 1,045 1,108 127 137 157 55 61 78
Banking (5) 322 339 344 133 114 113
Consumers (3) 204 218 215 55 60 59 38 40 40
Energy (3) 956 820 885 212 218 209 118 131 122
Industrials (1) 234 219 250 26 19 28 7 6 12
Infrastructure (1) 18 18 19 12 12 12 7 8 7
Metals & Mining (2) 463 430 421 43 69 49 21 34 23
Technology (3) 554 598 602 150 150 153 117 118 117
Telecom (1) 238 255 242 82 95 90 8 9 10
Utilities (2) 226 250 240 82 105 104 41 42 41
BSE-30 Index 4,361 4,388 4,522 833 917 910 570 598 593
BSE-30 Index (ex-energy) 3,405 3,568 3,637 622 699 701 452 467 471
Source: Companies, Kotak Institutional Equities estimates
Exhibit 5: Sector-wise net income of companies in the Nifty-50 Index (` bn)

Automobiles (6) 1,001 1,060 1,126 132 142 162 57 65 83
Banking (8) 376 399 405 146 132 131
Cement (4) 188 206 194 28 43 38 12 22 18
Consumers (3) 204 218 215 55 60 59 38 40 40
Energy (4) 1,421 1,289 1,374 225 257 235 129 157 140
Industrials (2) 293 275 313 21 20 29 5 7 13
Infrastructure (1) 18 18 19 12 12 12 7 8 7
Media (1) 14 16 16 4 5 5 2 3 3
Metals & Mining (3) 552 506 505 49 80 62 22 37 27
Technology (5) 721 780 788 181 186 188 142 146 143
Telecom (3) 356 382 367 126 140 132 22 18 17
Utilities (3) 246 264 256 87 106 106 43 43 43
Nifty-50 Index 5,565 5,610 5,773 965 1,102 1,078 651 713 697
Nifty-50 Index (ex-energy) 4,144 4,321 4,398 740 845 843 522 556 557

Strategy India
2QFY17/3QCY16 EARNINGS PREVIEW FOR KIE UNIVERSE

Company-wise earnings of the KIE universe (` mn)
Change (%)
Sep-15 Jun-16 Sep-16E yoy qoq Comments
Automobiles
Amara Raja Batteries
Net sales 11,583 13,208 13,500 16.6 2.2
EBITDA 1,987 2,273 2,228 12.1 (2.0) We estimate revenues to grow by 17% yoy, driven by (1) double-digit growth in
EBIT 1,644 1,832 1,783 8.4 (2.7) the replacement segment and (2) revenues from home UPS manufacturing facility
PBT 1,760 1,908 1,859 5.6 (2.5)
Reported PAT 1,226 1,307 1,273 3.9 (2.5)
Extraordinaries
We expect EBITDA margin to decline by 70 bps qoq, largely due to adverse impact
Adjusted PAT 1,226 1,307 1,273 3.9 (2.5)
of increase in lead prices
EPS (Rs/share) 7.2 7.6 7.5 3.9 (2.5)
EBITDA margin (%) 17.2 17.2 16.5 -66 bps -71 bps
Apollo Tyres
Net sales 29,959 33,041 33,389 11.4 1.1
We expect India business topline to stay flat yoy on account of decline in
EBITDA 4,828 5,388 4,564 (5.5) (15.3)
realizations; margins to slide sharply both yoy and qoq on account of increase in
EBIT 3,751 4,328 3,473 (7.4) (19.8)
input costs
PBT 3,693 4,328 3,399 (8.0) (21.5)
Reported PAT 2,787 3,147 2,379 (14.6) (24.4)
Extraordinaries 478 Europe business is likely to report 39% yoy growth in revenues on consolidation
Adjusted PAT 2,468 3,147 2,379 (3.6) (24.4) of Reifencom and favorable currency movement; margins to record strong yoy
EPS (Rs/share) 4.8 6.2 4.7 (3.6) (24.4) improvement
Ashok Leyland
Net sales 49,397 42,588 45,705 (7.5) 7.3
EBITDA 5,945 4,763 4,818 (19.0) 1.2 We estimate 8% yoy decline in revenues as 10% yoy decline in volumes will be
EBIT 4,815 3,553 3,608 (25.1) 1.5 partly offset by higher ASPs
PBT 4,379 3,658 3,728 (14.9) 1.9
Reported PAT 2,869 2,411 2,610 (9.0) 8.2
Extraordinaries (52)
We expect EBITDA margin to decline by 150 bps yoy, led by negative operating
Adjusted PAT 2,869 2,908 2,610 (9.0) (10.3)
leverage and increase in input costs
EPS (Rs/share) 1.0 1.0 0.9 (9.0) (10.3)
Bajaj Auto
Net sales 60,978 57,480 61,000 0.0 6.1
EBITDA 13,171 11,763 12,797 (2.8) 8.8 We expect revenues to remain flat yoy as the impact of 2% yoy decline in volumes
EBIT 12,391 10,989 12,022 (3.0) 9.4 will be offset by higher ASPs
PBT 13,915 13,657 14,722 5.8 7.8
Reported PAT 9,331 9,784 10,453 12.0 6.8
Extraordinaries
We expect EBITDA margin to improve by 50 bps qoq due to operating leverage
Adjusted PAT 9,331 9,784 10,453 12.0 6.8
benefit and slight improvement in product mix
EPS (Rs/share) 32.2 33.8 36.1 12.0 6.8
EBITDA margin (%) 21.6 20.5 21.0 -63 bps 51 bps
Balkrishna Industries
Net sales 7,869 9,281 8,813 12.0 (5.0)
EBITDA 2,423 2,600 2,360 (2.6) (9.2)
We expect volume growth to recover to 12% yoy
EBIT 1,724 1,825 1,562 (9.4) (14.4)
PBT 1,806 2,277 1,856 2.8 (18.5)
Reported PAT 1,250 1,490 1,281 2.4 (14.1)
Extraordinaries
We expect EBITDA margin to drop 400 bps yoy and 125 bps qoq, mainly on
Adjusted PAT 1,250 1,490 1,281 2.4 (14.1)
account of higher input costs
EPS (Rs/share) 12.9 15.4 13.2 2.4 (14.1)
Bharat Forge
Net sales 16,656 14,744 14,569 (12.5) (1.2)
EBITDA 3,573 2,701 2,742 (23.3) 1.5 We estimate standalone revenues to decline by 19% yoy due to steep decline in
EBIT 3,573 2,701 2,742 (23.3) 1.5 export revenues (28% yoy decline) and slowdown in domestic MHCV industry
PBT 2,564 1,709 1,749 (31.8) 2.4
Reported PAT 1,718 1,145 1,172 (31.8) 2.4
Extraordinaries
We expect standalone EBITDA margin to decline by 130 bps yoy due to negative
Adjusted PAT 1,718 1,145 1,172 (31.8) 2.4
operating leverage
EPS (Rs/share) 7.2 4.8 4.9 (31.8) 2.4
Eicher Motors
Net sales 31,225 15,557 17,697 (43.3) 13.8
EBITDA 4,927 4,702 5,652 14.7 20.2 We expect consolidated net profit to increase by 73% yoy, led by strong
EBIT 4,049 4,308 5,252 29.7 21.9 performance of RE. RE volumes improved by 31% yoy in 2QFY17
PBT 4,146 4,769 5,746 38.6 20.5
Reported PAT 2,555 3,763 4,419 73.0 17.4
Extraordinaries We expect EBITDA margin of Royal Enfield to improve by 420 bps yoy due to scale
Adjusted PAT 2,555 3,763 4,419 73.0 17.4 benefits. Yoy sales and EBITDA numbers are not comparable due to Ind-AS
EPS (Rs/share) 94.5 138.5 162.7 72.2 17.4 accounting
EBITDA margin (%) 15.8 30.2 31.9 1615 bps 171 bps

India Strategy

Change (%)
Exide Industries
Net sales 17,390 20,111 18,713 7.6 (6.9)
EBITDA 2,574 3,150 2,583 0.4 (18.0) We estimate revenues to grow by 8% yoy, led by 10% yoy revenue growth in
EBIT 2,191 2,659 2,088 (4.7) (21.4) automotive segment and 6% yoy growth in the industrial segment
PBT 2,276 2,784 2,226 (2.2) (20.0)
Reported PAT 1,561 1,961 1,558 (0.1) (20.5)
Extraordinaries
We expect EBITDA margin to decline by 190 bps qoq led by (1) 100 bps impact on
Adjusted PAT 1,561 1,961 1,558 (0.1) (20.5)
gross margin due to higher lead prices and (2) negative operating leverage
EPS (Rs/share) 1.8 2.3 1.8 (0.1) (20.5)
Hero Motocorp
Net sales 68,371 73,989 78,817 15.3 6.5
EBITDA 10,834 12,301 13,317 22.9 8.3 We expect revenues to increase by 15% yoy on the back of 16% yoy volume
EBIT 9,744 11,148 12,157 24.8 9.0 growth
PBT 10,764 12,337 13,342 23.9 8.1
Reported PAT 7,721 8,831 9,606 24.4 8.8
Extraordinaries
We expect EBITDA margin to remain strong at around 16.9% (up 100 bps yoy) led
Adjusted PAT 7,721 8,831 9,606 24.4 8.8
by double-digit revenue growth and stable pricing
EPS (Rs/share) 38.7 44.2 48.1 24.4 8.8
Mahindra CIE Automotive
Net sales 12,650 13,721 13,000 2.8 (5.3)
EBITDA 1,295 1,533 1,465 13.1 (4.4) We expect consolidated revenues to grow by 3% yoy, led by marginal growth in
Reported PAT 548 715 640 16.8 (10.5) both domestic and overseas business
Adjusted PAT 548 715 640 16.8 (10.5)
EPS (Rs/share) 1.7 2.2 2.0 16.8 (10.5)
We expect consolidated EBITDA margin to remain largely flat qoq
Mahindra & Mahindra
Net sales 87,937 105,247 102,805 16.9 (2.3)
We estimate revenues to increase by 17% yoy on the back of 19% yoy volume
EBITDA 11,626 14,885 13,657 17.5 (8.2)
growth and marginal reduction in average selling prices
EBIT 8,796 11,401 10,157 15.5 (10.9)
PBT 13,104 12,269 14,886 13.6 21.3
Reported PAT 9,781 9,616 10,867 11.1 13.0
Extraordinaries 910
We estimate EBITDA margin to decline by 90 bps qoq, driven by moderation in the
Adjusted PAT 9,781 8,952 10,867 11.1 21.4
profitability of the farm equipment segment due to lower volumes
EPS (Rs/share) 17.2 15.7 19.1 11.1 21.4
EBITDA margin (%) 13.2 14.1 13.3 6 bps -86 bps
Maruti Suzuki
Net sales 139,337 149,273 181,322 30.1 21.5
We expect revenues to increase by 30% yoy on the back of 18% yoy volume
EBITDA 22,694 22,157 28,697 26.5 29.5
growth and increase in realizations led by higher export ASPs and success of
EBIT 15,997 15,766 22,295 39.4 41.4
higher-priced recent launches
PBT 17,193 20,420 27,116 57.7 32.8
Reported PAT 12,256 14,862 19,795 61.5 33.2
Extraordinaries We expect EBITDA margin to improve by 100 bps qoq as operating leverage
Adjusted PAT 12,256 14,862 19,795 61.5 33.2 benefits will more than offset the impact of adverse currency movements
EPS (Rs/share) 40.6 49.2 65.5 61.5 33.2
Minda Corp.
Net sales 6,162 6,954 7,660 24.3 10.2
We expect consolidated revenues to grow by 24% yoy, led by strong growth in
EBITDA 586 585 717 22.5 22.6
standalone business and impact of consolidation of Minda Stoneridge and Panalfa
EBIT 394 372 502 27.5 34.9
financials
PBT 348 324 452 30.1 39.6
Reported PAT 291 249 309 6.4 24.3
Extraordinaries 60
We expect EBITDA margin to improve by 90 bps qoq due to (1) operating leverage
Adjusted PAT 248 249 309 24.8 24.3
benefits and (2) some improvement in the profitability of Minda Furukawa JV
EPS (Rs/share) 1.2 1.2 1.5 24.8 24.3
Motherson Sumi Systems
Net sales 91,976 104,504 102,542 11.5 (1.9)
EBITDA 8,961 9,282 9,963 11.2 7.3 We expect 13% yoy revenue growth for the standalone entity and 15% yoy growth
EBIT 6,262 6,774 7,433 18.7 9.7 in Euro revenues of the SMRPBV business. Consolidated revenue growth will likely
PBT 5,666 5,964 6,623 16.9 11.1 be lower at 11% yoy due to adoption of equity method of consolidation for some
Reported PAT 2,869 3,026 3,437 19.8 13.6 subsidiaries under Ind-AS
Adjusted PAT 2,869 3,026 3,437 19.8 13.6
We expect consolidated EBITDA margin to improve by 80 bps qoq as we build in
EPS (Rs/share) 2.2 2.3 2.6 19.8 13.6
sequential margin improvement in both standalone and SMRPBV businesses
Suprajit Engineering
Net sales 2,624 2,544 2,969 13.1 16.7
EBITDA 407 409 510 25.2 24.6 We expect consolidated revenues to grow by 13% yoy, led by 16% yoy revenue
EBIT 360 370 470 30.6 27.1 growth in the standalone business
PBT 316 325 425 34.5 30.9
Reported PAT 198 197 261 31.7 32.8
We expect consolidated EBITDA margin to improve by 110 bps qoq due to
Adjusted PAT 187 197 261 39.8 32.8
operating leverage benefits
EPS (Rs/share) 1.6 1.5 2.0 27.8 32.8

Strategy India

Change (%)
Tata Motors
Net sales 613,182 658,950 684,028 11.6 3.8
We expect standalone revenues to increase by 8% yoy on the back of 7% yoy
EBITDA 68,804 76,129 88,151 28.1 15.8
volume growth. EBITDA margin will likely increase by 80 bps yoy due to richer
EBIT 24,524 30,621 42,151 71.9 37.7
product-mix and operating leverage benefit
PBT 15,383 20,663 32,651 112.3 58.0
Reported PAT (4,298) 22,364 27,509 NM 23.0
Extraordinaries (26,529) 4,851 JLR's total volumes will likely increase by 23% yoy. We expect reported EBITDA
Adjusted PAT 15,599 18,725 27,509 76.3 46.9 margin of JLR UK P&L of 14.4% (+220 bps yoy) after building in forex loss of
EPS (Rs/share) 4.6 5.5 8.1 76.3 46.9 GBP420 mn
TVS Motor
Net sales 28,807 28,809 33,382 15.9 15.9
EBITDA 2,119 2,004 2,711 27.9 35.3 We expect 16% yoy revenue growth on the back of 20% yoy volume growth;
EBIT 1,653 1,344 2,051 24.1 52.6 lower three-wheeler and export mix to impact ASPs
PBT 1,609 1,608 2,311 43.6 43.7
Reported PAT 1,164 1,213 1,734 48.9 43.0
Extraordinaries
We expect EBITDA margin to expand by 120 bps qoq to 8.1% largely due to
Adjusted PAT 1,164 1,213 1,734 48.9 43.0
operating leverage benefits
EPS (Rs/share) 2.5 2.6 3.6 48.9 43.0
WABCO India
Net sales 4,289 5,367 5,075 18.3 (5.4)
We estimate revenues to increase by 18% yoy, led by higher content per vehicle
EBITDA 651 1,044 935 43.5 (10.4)
due to mandatory ABS in MHCVs from October 1, 2016 and some growth in the
EBIT 512 892 783 53.1 (12.2)
after-market segment
PBT 604 986 873 44.7 (11.4)
Reported PAT 483 739 655 35.6 (11.3)
Extraordinaries
We expect EBITDA margin to decline by 100 bps qoq due to negative operating
Adjusted PAT 483 739 655 35.6 (11.3)
leverage led by weakness in MHCV industry volumes
EPS (Rs/share) 25.5 39.0 34.5 35.6 (11.3)
Banks/Financial Institutions
Axis Bank
Net interest income 40,621 45,169 44,673 10.0 (1.1)
We expect revenue growth to remain moderate at 11% yoy but NII would be
Pre-provision profit 36,280 44,694 39,645 9.3 (11.3)
under pressure due to high NPLs. We model NIM to decline by over 10 bps qoq
Treasury income (net) 945 9,290 10,072 965.8 8.4
Loan-loss provisions 6,190 18,940 17,993 190.7 (5.0)
We expect fresh impairments at elevated levels due to corporate defaults. We
Adjusted PAT 19,156 15,555 14,340 (25.1) (7.8)
expect net profits to decline 25% yoy due to high loan-loss provisions
EPS (Rs/share) 8.1 6.6 6.1 (25.1) (7.8)
Bank of Baroda
We expect loan growth to decline yoy partly due to SEB and portfolio rebalancing.
Pre-provision profit 23,371 26,695 27,474 17.6 2.9
NII growth would be under pressure but NIM (core) should improve qoq
Treasury income (net) 1,121 5,380 8,125 624.6 51.0
We expect fresh slippages to decline sharply leading to lower provisions and
Adjusted PAT 1,245 4,236 5,030 303.9 18.7
comfortable coverage ratio at 60% levels. We expect strong qoq treasury gains
EPS (Rs/share) 2.7 9.2 10.9 303.9 18.7
Bank of India
Net interest income 30,197 27,752 29,421 (2.6) 6.0
We expect flat NII and negligible loan growth. Strong treasury income and stake
sale of insurance venture will boost revenues
Treasury income (net) 520 3,910 9,650 1,755.8 146.8
Loan-loss provisions 31,370 27,825 23,651 (24.6) (15.0)
We expect fresh impairment ratios to decline but credit costs to remain high due to
Adjusted PAT (11,262) (7,414) (1,406) (87.5) (81.0)
the composition of NPLs
EPS (Rs/share) (14.2) (9.4) (1.8) (87.5) (81.0)
Canara Bank
We expect NII to be be under pressure due to high NPLs and low growth. We
expect PPoP to be flat despite strong treasury contribution
Loan-loss provisions 11,390 14,760 16,236 42.5 10.0
Adjusted PAT 5,289 2,290 2,552 (51.7) 11.5 We expect provisions for existing NPLs but slippages to decline sharply qoq
EPS (Rs/share) 9.7 4.2 4.7 (51.7) 11.5
Cholamandalam
Net interest income 5,063 5,604 5,887 16.3 5.1
Pre-provision profit 2,979 3,341 3,492 17.2 4.5 We expect loan growth to remain strong at 18% yoy
Loan-loss provisions 1,147 804 900 (21.6) 12.0
Adjusted PAT 1,205 1,657 1,698 40.9 2.4
NIM will likely expand by 10 bps qoq to 7.5%
EPS (Rs/share) 7.8 10.7 11.0 40.9 2.4

India Strategy

Change (%)
City Union Bank
We expect NII to grow at a slower pace of 15-17% yoy on the back of 15% yoy
loan growth. NIM will decline marginally qoq
Treasury income (net) 289 491 591 104.5 20.4
Loan-loss provisions 450 575 525 16.7 (8.7) We expect fresh impairments similar to trend levels that the bank has seen in the
Adjusted PAT 1,078 1,235 1,236 14.6 0.1 previous few quarters while cost-income ratio is likely to remain high because of
EPS (Rs/share) 1.8 2.1 2.1 14.6 0.1 provisions for new wage setlltment
DCB Bank
We expect similar growth in the case of NII and non-interest income. Margin will
Pre-provision profit 781 927 915 17.1 (1.3)
remain stable qoq
Treasury income (net) 50 160 220.0
Loan-loss provisions 180 160 208 15.6 30.0
We expect PAT to grow 22% yoy despite elevated costs. Cost-income ratio will
Adjusted PAT 369 470 449 21.5 (4.6)
remain high at over 60% levels
EPS (Rs/share) 1.3 1.7 1.6 21.5 (4.6)
Dewan Housing Finance
Loan growth will likely remain strong at 20% yoy
Loan-loss provisions 450 450 400 (11.1) (11.1)
Adjusted PAT 1,804 2,014 1,950 8.1 (3.2)
Negative carry post the recent debt issuances will temper NIMs
EPS (Rs/share) 12.4 13.8 13.4 8.1 (3.2)
Federal Bank
We expect NII growth to pick up to 15% yoy while loan growth should be better at
over 15% yoy
Treasury income (net) 520 630 1,000 92.3 58.7
We expect slippages to decline qoq but provisions for existing NPLs would be
Adjusted PAT 1,613 1,673 1,913 18.6 14.3
high. However, strong treasury gains provide comfort on overall net profits
EPS (Rs/share) 1.9 1.9 2.2 18.3 14.3
HDFC
We expect loan growth to remain moderate at 15%
Adjusted PAT 16,046 18,707 18,316 14.2 (2.1)
Dividend income from HDFC Bank will support net profits
EPS (Rs/share) 10.2 11.8 11.6 14.0 (2.1)
HDFC Bank
We expect NIM to remain stable qoq and NII growth to be lower than loan
growth. Fee income growth will likely be ~13% yoy
We expect loan impairment to remain stable qoq. Loan growth is likely to drop to
Adjusted PAT 28,695 32,389 34,332 19.6 6.0
16-17% yoy from over 20% levels earlier
EPS (Rs/share) 11.4 12.8 13.5 18.9 6.0
ICICI Bank
We expect net profits to decline sharply on the back of high provisions despite the
stake sale in ICICI Prudential Life. We expect loan growth at 12% but NIM to
Treasury income (net) 2,220 7,680 62,000 2,692.8 707.3
decline qoq due to high slippages
Adjusted PAT 30,300 22,329 22,105 (27.0) (1.0) We expect the bank to report high slippages but the impact on earnings may be
EPS (Rs/share) 5.2 3.8 3.8 (26.7) (1.0) limited as it would book significant gains on part sale of its insurance business
IDFC
Net interest income 4,320 5,152 4,000 (7.4) (22.4)
Pre-provision profit 7,610 5,455 3,824 (49.7) (29.9) Debt capital gains will support earnings
Loan-loss provisions 29,010 457 550 (98.1) 20.5
Adjusted PAT (14,450) 3,311 2,161 NM (34.7)
Corporate loan book growth will remain muted
EPS (Rs/share) (9.1) 2.1 1.4 NM (34.7)
IIFL Holdings
Net sales 10,318 10,306 11,160 8.2 8.3
Broking business will likely be strong as cash market volumes were up 22% yoy
Adjusted PAT 1,404 1,375 1,488 6.0 8.2
EPS (Rs/share) 4.5 4.4 4.8 6.0 8.2 Insurance distribution business will pick up
IndusInd Bank
Net interest income 10,943 13,564 13,944 27.4 2.8 We expect loan growth at ~25% yoy, led by strong growth in retail business. NIM
Pre-provision profit 10,065 12,338 12,487 24.1 1.2 will remain stable qoq supported by higher share of retail loans
Treasury income (net) 1,102 1,911 1,891 71.6 (1.0)
We expect growth in fee income to slow down but see higher contribution from
treasury. We see limited asset-quality stress but provisions will remain high for
Adjusted PAT 5,600 6,614 6,945 24.0 5.0
prior-period book
EPS (Rs/share) 9.5 11.1 11.7 23.2 5.0
J&K Bank
We expect loan growth at 10% yoy, but NII would be under pressure due to high
Pre-provision profit 4,377 3,493 3,480 (20.5) (0.4)
income de-recognition and loan mix change
Treasury income (net) 527 77 670 27.2 773.5
We expect fresh impairment ratios to decline sharply. Credit costs could remain
Adjusted PAT 1,956 229 360 (81.6) 57.2
high. We take a conservative view on credit costs for the quarter
EPS (Rs/share) 4.0 0.5 0.7 (81.6) 57.2
Karur Vysya Bank
We expect 16% yoy earnings growth, led by 8% yoy revenue growth. Loan
Pre-provision profit 3,552 2,940 3,227 (9.2) 9.8
growth at ~8-10% would be the key factor to monitor
Treasury income (net) 640 220 600 (6.3) 172.7
Loan-loss provisions 1,000 880 600 (40.0) (31.8)
We expect asset-quality trends to be stable qoq. Cost-income ratio would be high
Adjusted PAT 1,422 1,504 1,643 15.5 9.3
as ammortisation of costs is taken through operating expenses
EPS (Rs/share) 11.7 12.3 13.5 15.5 9.3

Strategy India

Change (%)
LIC Housing Finance
Pre-provision profit 6,743 7,399 7,363 9.2 (0.5) We expect 15% yoy loan growth
Loan-loss provisions 301 1,165 205 (31.8) (82.4)
Adjusted PAT 4,117 4,078 4,796 16.5 17.6
NIM will likely compress 10 bps qoq
EPS (Rs/share) 8.2 8.1 9.5 16.5 17.6
Magma Fincorp
Pre-provision profit 1,627 1,531 1,730 6.3 13.0 We expect loan book to decline marginally (2% qoq) in 2QFY17
Adjusted PAT 488 476 581 19.2 22.1
NIM will decline 50 bps qoq in line with seasonal trends
EPS (Rs/share) 2.1 2.0 2.5 19.2 22.1
Mahindra & Mahindra Financial
Pre-provision profit 5,033 3,587 4,250 (15.6) 18.5 Loan growth will remain moderate (11% yoy)
Loan-loss provisions 2,772 2,245 1,750 (36.9) (22.1)
Adjusted PAT 1,462 870 1,625 11.2 86.8
Lower provisions qoq will likely lead to strong earnings growth
EPS (Rs/share) 2.6 1.5 2.9 11.2 86.8
Muthoot Finance
Pre-provision profit 2,830 4,413 4,425 56.4 0.3 Loan book will likely grow by 3% qoq and 7% yoy
Adjusted PAT 1,745 2,703 2,759 58.1 2.1
We expect NIM to remain strong at 11% (9% in 2QFY16)
EPS (Rs/share) 4.4 6.8 6.9 58.1 2.1
Oriental Bank of Commerce
We expect NII to be weak led by weak loan growth. We see qoq improvement in
Pre-provision profit 9,925 9,171 9,433 (5.0) 2.9
overall performance, especially lower loan-loss provisions
Treasury income (net) 894 1,579 1,976 121.1 25.2
We expect fresh impairment to decline but provisions to remain high due to ageing
Adjusted PAT 3,013 1,007 1,146 (62.0) 13.8
of NPLs
EPS (Rs/share) 10.0 3.4 3.8 (62.0) 13.8
PFC
Pre-provision profit 28,430 24,719 37,404 31.6 51.3 We expect loan book to reduce 6% yoy
Loan-loss provisions 3,810 2,000 2,280 (40.2) 14.0
Adjusted PAT 16,950 15,676 24,725 45.9 57.7
NIM will likely remain stable
EPS (Rs/share) 6.4 5.9 9.4 45.9 57.7
Punjab National Bank
We expect weak earnings due to high provisions and lower PPoP growth; loan
growth could be closer to industry average
We expect fresh impairments to decline but provisioning costs to remain high. NIM
Adjusted PAT 6,210 3,064 3,014 (51.5) (1.6)
will remain flat qoq due to lower income de-recognition
EPS (Rs/share) 3.2 1.6 1.5 (51.5) (1.6)
Rural Electrification Corp.
Pre-provision profit 23,246 24,093 22,437 (3.5) (6.9) We expect loan book to reduce by 4% qoq
Loan-loss provisions 558 3,565 3,000 437.9 (15.9)
Adjusted PAT 16,192 14,209 13,118 (19.0) (7.7)
NIM will likely remain stable
EPS (Rs/share) 8.2 7.2 6.6 (19.0) (7.7)
Shriram City Union Finance
We expect ex-gold loan growth to remain strong at 23% yoy
Adjusted PAT 1,523 1,812 1,880 23.4 3.8
We expect NPL to remain low but provisions may be elevated
EPS (Rs/share) 23.1 27.5 28.5 23.4 3.8
Shriram Transport
Pre-provision profit 9,127 10,288 10,400 14.0 1.1 We expect loan book growth to moderate to 22% yoy from 24% yoy
Adjusted PAT 3,381 3,741 3,894 15.2 4.1
NIM will likely remain stable qoq
EPS (Rs/share) 14.9 16.5 17.2 15.2 4.1
State Bank of India
We expect NIM to remain flat qoq. Loan growth will be marginally ahead of
industry average at around 11%
Treasury income (net) 15,450 27,120 24,800 60.5 (8.6)
We expect a sharp 40 decline in net profits yoy due to higher provisions. We
Adjusted PAT 38,791 25,210 23,667 (39.0) (6.1)
expect slippages to be similar to last quarter's levels
EPS (Rs/share) 5.0 3.2 3.0 (39.0) (6.1)
Union Bank
We expect NII to increase 3% yoy and NIM to expand slightly qoq. We expect loan
growth at closer to industry average
Treasury income (net) 1,130 400 125 (88.9) (68.8)
We expect provisions to remain high despite sharp decline in slippages primarily
Adjusted PAT 6,582 1,663 1,847 (71.9) 11.0
led by ageing of NPLs
EPS (Rs/share) 9.6 2.4 2.7 (71.9) 11.0

India Strategy

Change (%)
YES Bank
We expect flat NIM qoq and loan growth at ~25% levels. Fee income trends will
remain broadly stable yoy
Treasury income (net) 500 100 1,000 100.0 900.0
Loan-loss provisions 900 2,050 2,563 184.7 25.0 We expect PAT to be flat yoy and decline 15% qoq as we build in higher
Adjusted PAT 6,104 7,318 6,189 1.4 (15.4) provisions for credit costs and lower non-interest income growth. Impairment
EPS (Rs/share) 14.6 17.5 14.8 1.4 (15.4) ratios will rise marginally qoq
Cement
ACC
Net sales 27,400 28,698 28,098 2.5 (2.1)
EBITDA 2,638 4,092 4,213 59.7 3.0 We factor in 2% yoy growth in volumes, compared to 1% yoy decline reported in
EBIT 1,031 2,682 2,709 162.8 1.0 the preceding quarter
PBT 1,559 3,185 3,181 104.1 (0.1)
Reported PAT 1,170 2,378 2,386 103.9 0.3
Extraordinaries
Our estimates factor in Rs6/bag sequential increase in cement prices given strong
Adjusted PAT 1,170 2,378 2,386 103.9 0.3
prices in north and central regions
EPS (Rs/share) 6.2 12.6 12.7 103.9 0.3
Ambuja Cements
Net sales 20,952 25,412 22,044 5.2 (13.3)
EBITDA 2,944 5,813 4,320 46.7 (25.7)
Sequential improvement in cement prices will be offset by lower volumes
EBIT 1,392 4,303 2,783 100.0 (35.3)
PBT 2,082 5,465 3,785 81.8 (30.7)
Reported PAT 1,536 3,995 2,650 72.5 (33.7)
Extraordinaries
We factor in marginal decline in volumes taking into consideration the weakness in
Adjusted PAT 1,536 3,995 2,650 72.5 (33.7)
cement demand through the quarter
EPS (Rs/share) 1.1 3.0 2.0 72.5 (33.7)
Dalmia Bharat
Net sales 13,981 17,654 15,711 12.4 (11.0)
We expect realizations to increase by Rs8/bag qoq aided by higher prices in south
EBITDA 2,819 4,963 4,146 47.1 (16.5)
and east markets. The benefit of improved realizations to will be partially offset by
EBIT 1,711 3,625 2,795 63.4 (22.9)
higher pet-coke costs
PBT 666 2,100 1,166 75.2 (44.5)
Reported PAT 188 940 670 256.7 (28.7)
Extraordinaries
We expect 13% yoy volume growth, led by ramp-up of capacities in east and north-
Adjusted PAT 188 940 670 256.7 (28.7)
east markets
EPS (Rs/share) 2.3 11.6 8.2 256.7 (28.7)
Grasim Industries
Net sales 82,975 90,041 87,147 5.0 (3.2)
EBITDA 13,026 19,401 18,262 40.2 (5.9) Strong performance as (1) VSF and chemical businesses continue to operate at
EBIT 8,449 15,037 13,666 61.7 (9.1) near-capacity utilization and (2) price trends remain firm
PBT 8,586 15,739 13,920 62.1 (11.6)
Reported PAT 4,885 8,302 7,322 49.9 (11.8)
Extraordinaries 471
Adjusted PAT 4,885 7,831 7,322 49.9 (6.5) Volume growth of 4% yoy in Ultratech, supplemented by improving cement prices
EPS (Rs/share) 53.2 83.9 78.4 47.5 (6.5)
India Cements
Net sales 10,791 10,521 10,982 1.8 4.4
EBITDA 2,286 2,014 1,747 (23.6) (13.3) We factor in 6% yoy growth in volumes at 2.3 mn tons, which is a moderation
EBIT 1,734 1,503 1,231 (29.0) (18.1) from the 10% yoy growth reported in 1QFY17
PBT 813 710 408 (49.8) (42.6)
Reported PAT 410 440 298 (27.4) (32.3)
Sequential improvement in cement pricess offset by lower volume base and
Adjusted PAT 450 440 298 (33.8) (32.3)
possible increase in fuel costs
EPS (Rs/share) 1.5 1.4 1.0 (33.8) (32.3)
J K Cement
Net sales 8,679 8,867 9,234 6.4 4.1
EBITDA 1,064 1,657 1,813 70.4 9.4 We expect subdued grey cement volumes (1.6 mn tons, 1% yoy) but expect white
EBIT 682 1,232 1,375 101.7 11.6 cement/putty volumes to increase by 15% yoy
PBT 140 840 996 612.0 18.6
Reported PAT 137 609 747 444.4 22.8
Extraordinaries (111) We expect grey cement realizations to improve by Rs7/bag qoq aided by higher
Adjusted PAT 137 609 747 444.4 22.8 prices in north India (key market). However, the benefit of higher cement prices on
EPS (Rs/share) 2.0 8.7 10.7 444.4 22.8 earnings will be diluted due to increase in pet-coke prices

Strategy India

Change (%)
JK Lakshmi Cement
Net sales 6,457 7,772 7,851 21.6 1.0
EBITDA 667 1,175 1,339 100.8 13.9 We factor in volume growth of 18% yoy aided by ramp-up of Durg plant, which
EBIT 250 763 923 269.1 20.9 will result in higher volumes in east India
PBT (168) 404 567 NM 40.3
Reported PAT (150) 286 397 NM 38.6
Extraordinaries (53) We estimate price increase of Rs6/bag qoq for the company due to its presence in
Adjusted PAT (150) 286 397 NM 38.6 north, east markets. However, the benefit of higher prices will be partially offset
EPS (Rs/share) (1.3) 2.4 3.4 NM 38.6 by increase in pet-coke costs
Orient Cement
Net sales 3,550 4,355 4,420 24.5 1.5
EBITDA 364 388 550 51.3 41.7 We expect volume growth of 30% yoy to 1.3 mn tons from ramp-up of Chittapur
EBIT 239 97 259 8.0 166.5 plant
PBT 228 (145) 24 (89.6) NM
Reported PAT 280 (76) 18 (93.7) NM
Extraordinaries
We build in Rs15/bag qoq increase in realizations aided by recovery in prices in
Adjusted PAT 280 (76) 18 (93.7) NM
Andhra Pradesh/Telangana region
EPS (Rs/share) 1.4 (0.4) 0.1 (93.7) NM
Shree Cement
Net sales 17,235 21,987 22,085 28.1 0.4
EBITDA 3,885 7,308 7,508 93.3 2.7 We expect realizations to improve by Rs7-10/bag sequentially as prices remain
EBIT 1,181 5,768 6,001 408.1 4.0 strong in north and central regions
PBT 1,187 6,471 6,493 447.1 0.3
Reported PAT 1,287 5,110 5,194 303.5 1.7
Extraordinaries 21
We build volume growth of 17% yoy as the company benefits from expanded
Adjusted PAT 1,308 5,077 5,194 297.0 2.3
capacities and superior capacity utilization compared to peers
EPS (Rs/share) 37.6 145.7 149.1 297.0 2.3
UltraTech Cement
Net sales 56,209 61,823 56,590 0.7 (8.5)
EBITDA 9,283 13,723 11,573 24.7 (15.7) Modest sequential improvement in realizations (Rs6/bag qoq) owing to strength in
EBIT 5,950 10,696 8,448 42.0 (21.0) prices seen in north and central regions
PBT 5,697 11,177 8,839 55.1 (20.9)
Reported PAT 3,939 7,749 6,055 53.7 (21.9)
Extraordinaries
We factor in volume growth of 4% yoy, lower than the volume growth reported in
Adjusted PAT 3,939 7,749 6,055 53.7 (21.9)
1QFY17
EPS (Rs/share) 14.4 28.3 22.1 53.7 (21.9)
Consumer Products
Asian Paints
Net sales 37,794 36,374 39,277 3.9 8.0 We have prepared our estimates for consumer product companies under Ind-AS as
EBITDA 6,208 8,203 7,570 21.9 (7.7) companies will report under Ind-AS. However, 2QFY16 results are under I-GAAP.
EBIT 5,499 7,348 6,700 21.8 (8.8) For the sake of proper comparison, we give like-for-like comparison in the
PBT 5,982 8,003 7,395 23.6 (7.6) individual comments on companies
Reported PAT 3,990 5,351 4,886 22.5 (8.7)
We model domestic sales growth of ~13% yoy, led by 15% volume growth and
Extraordinaries
2% price deflation (due to price cuts). We model robust 23% yoy growth in
Adjusted PAT 3,990 5,351 4,886 22.5 (8.7)
EBITDA (like-for-like) aided by 150 bps expansion in EBITDA margin due to higher
EPS (Rs/share) 4.2 5.6 5.1 22.5 (8.7)
GMs
Bajaj Corp.
Net sales 1,901 2,037 1,966 3.4 (3.5)
We expect ADHO volumes to grow 3% yoy. NOMARKS revenues is likely to
EBITDA 642 704 686 7.0 (2.5)
remain flat qoq (pickup still some time away, in our view). Overall revenues to
EBIT 632 694 676 6.9 (2.5)
grow 3% yoy (like-for-like)
PBT 712 781 767 7.7 (1.8)
Reported PAT 468 522 552 18.0 5.7
Extraordinaries (94) (94) (53) (43.5) (43.5)
We model 7% yoy growth in EBITDA aided by 120 bps expansion in EBITDA
Adjusted PAT 562 616 605 7.7 (1.8)
margin on account of higher GMs
EPS (Rs/share) 3.8 4.2 4.1 7.7 (1.8)
Britannia Industries
Net sales 22,087 21,408 23,690 7.3 10.7
EBITDA 3,250 3,162 3,426 5.4 8.3 We expect consolidated revenues to grow 11% yoy (like-for-like) led by similar
EBIT 2,978 2,883 3,138 5.4 8.8 domestic business growth (7% volume growth and 4% price/mix-led growth)
PBT 3,265 3,263 3,543 8.5 8.6
Reported PAT 2,186 2,191 2,349 7.4 7.2
Extraordinaries
Adjusted PAT 2,186 2,191 2,349 7.4 7.2 We model 6% yoy EBITDA growth dragged by lower GMs
EPS (Rs/share) 18.2 18.3 19.6 7.4 7.2

India Strategy

Change (%)
Coffee Day Enterprises
Net sales 6,658 7,395 7,680 15.4 3.9
EBITDA 1,220 1,208 1,235 1.3 2.2 We expect 14% revenue growth (like-for-like) led by ~6% growth in ASPD in retail
EBIT 533 668 665 24.7 (0.4) caf business and addition of caf vending machines (1,500 machines qoq)
PBT (190) 65 35 NM (45.5)
Reported PAT (93) 114 180 NM 57.5
Extraordinaries
We model 7% EBITDA growth (like-for-like) dragged by 130 bps contraction in
Adjusted PAT (93) 114 180 NM 57.5
EBITDA margin due to higher staff costs and lower GMs
EPS (Rs/share) (0.0) 0.1 0.1 NM 57.5
Colgate-Palmolive (India)
Net sales 10,385 10,131 10,881 4.8 7.4
EBITDA 2,549 2,113 2,719 6.7 28.7 We model 12% growth in revenues (like-for-like) led by 6% overall volume growth
EBIT 2,280 1,796 2,394 5.0 33.3 (5% in toothpaste) and 6% price/mix-led growth
PBT 2,388 1,897 2,509 5.1 32.3
Reported PAT 1,569 1,257 1,644 4.8 30.8
Extraordinaries
We model 8% yoy growth in EBITDA (like-for-like) as we build in 80 bps yoy
Adjusted PAT 1,569 1,257 1,644 4.8 30.8
contraction in EBITDA margin due to higher A&SP (up 120 bps yoy)
EPS (Rs/share) 5.8 4.6 6.0 4.8 30.8
Dabur India
Net sales 19,385 19,284 20,162 4.0 4.6
We expect 3% growth in domestic business (led by 5% volume growth) and 6%
EBITDA 4,047 3,488 4,200 3.8 20.4
growth in international business (dragged by weaker performance in Saudi Arabia
EBIT 3,719 3,145 3,845 3.4 22.2
and MENA region)
PBT 4,143 3,637 4,399 6.2 20.9
Reported PAT 3,407 2,928 3,575 4.9 22.1
Extraordinaries
We expect 4% EBITDA growth (like-for-like) as we bake in flattish EBITDA margin
Adjusted PAT 3,407 2,928 3,575 4.9 22.1
dragged by weak operating leverage
EPS (Rs/share) 1.9 1.7 2.0 4.9 22.1
GlaxoSmithKline Consumer
Net sales 11,257 9,439 11,417 1.4 21.0
EBITDA 2,377 2,035 2,617 10.1 28.6 We model 6% growth in domestic business (on like-for-like basis) driven by 3%
EBIT 2,240 1,889 2,467 10.1 30.6 volume growth and ~3% price/mix-led growth
PBT 2,812 2,474 3,096 10.1 25.1
Reported PAT 2,194 1,606 2,012 (8.3) 25.3
Extraordinaries 367
We model 10% yoy EBITDA growth (like-for-like) aided by 70 bps expansion in
Adjusted PAT 1,827 1,606 2,012 10.2 25.3
EBITDA margin due to higher GMs
EPS (Rs/share) 43.4 38.2 47.8 10.2 25.3
Godrej Consumer Products
Net sales 21,165 21,228 24,937 17.8 17.5
We model 10% growth in the domestic business (-5%, 6% and 18% growth in
EBITDA 4,062 3,809 4,957 22.0 30.1
soaps, hair colors and HI, respectively) and 28% growth in IBD (aided by
EBIT 3,828 3,483 4,617 20.6 32.6
consolidation of SON; likely to contribute Rs1.8 bn revenues)
PBT 3,720 3,298 4,487 20.6 36.1
Reported PAT 2,193 2,443 3,431 56.5 40.5
Extraordinaries (760) (95) We model 22% yoy growth in EBITDA aided by 70 bps expansion in EBITDA
Adjusted PAT 2,953 2,538 3,431 16.2 35.2 margin due to consolidation of higher margin SON business and higher operating
EPS (Rs/share) 8.7 7.5 10.1 16.2 35.2 leverage
Hindustan Unilever
Net sales 77,314 81,282 80,544 4.2 (0.9)
We model 5% domestic FMCG sales growth led by 3% underlying volume growth
EBITDA 13,366 16,359 14,317 7.1 (12.5)
(UVG); we have modeled 6.5% and 3% yoy growth in home care and personal
EBIT 12,605 15,426 13,367 6.0 (13.3)
care segment
PBT 14,503 16,442 15,368 6.0 (6.5)
Reported PAT 9,822 11,739 10,527 7.2 (10.3)
Extraordinaries (121) 462
We model 7% EBITDA growth aided by 50 bps yoy expansion in EBITDA margin
Adjusted PAT 9,943 11,277 10,527 5.9 (6.7)
(led by higher GMs)
EPS (Rs/share) 4.6 5.2 4.9 5.9 (6.7)
ITC
Net sales 89,042 100,540 95,137 6.8 (5.4)
We model 4% yoy volume growth in cigarettes and modest growth in FMCG
EBITDA 35,601 35,262 37,096 4.2 5.2
business of 10.5% yoy; among other businesses, we model 2%, 10% and 2%
EBIT 33,013 32,650 34,402 4.2 5.4
growth in hotels, agri-business and paperboards respectively on a like-for-like
PBT 36,901 36,754 38,720 4.9 5.4
basis
Reported PAT 24,312 23,847 25,082 3.2 5.2
Extraordinaries
Adjusted PAT 24,312 23,847 25,082 3.2 5.2 We estimate 10% growth in cigarette EBIT; overall EBITDA to grow at 9% yoy on
EPS (Rs/share) 2.0 2.0 2.1 2.6 5.0 a like-for-like basis

Strategy India

Change (%)
Jubilant Foodworks
Net sales 5,875 6,089 6,593 12.2 8.3
EBITDA 637 577 700 9.9 21.2 We model 3% SSG (qoq acceleration from -3.2%) and modest topline growth led
EBIT 330 251 360 9.2 43.2 by store expansion (addition of 30 Domino's stores and 4 DD stores)
PBT 346 282 393 13.6 39.3
Reported PAT 239 190 263 10.2 38.6
Extraordinaries
We model 10% EBITDA growth as we expect EBITDA margin to contract 20 bps
Adjusted PAT 239 190 263 10.2 38.6
yoy due to weak operating leverage and higher drag from DD stores
EPS (Rs/share) 3.6 5.8 5.8 60.4 0.0
Jyothy Laboratories
Net sales 4,014 4,403 4,285 6.8 (2.7)
EBITDA 553 809 636 15.0 (21.4) We expect 10% yoy topline growth (like-for-like) largely volume-led; HI business
EBIT 481 738 561 16.6 (24.1) to recover to double-digit growth due to stronger season
PBT 511 610 446 (12.7) (27.0)
Reported PAT 388 459 323 (16.7) (29.6)
Extraordinaries (61) (15) (15) (75.3) 2.7
We model 15% EBITDA growth (like-for-like) aided by 80 bps expansion in EBITDA
Adjusted PAT 448 474 338 (24.6) (28.6)
margin
EPS (Rs/share) 3.2 3.2 3.2 0.0 0.0
Manpasand Beverages
Net sales 815 2,293 1,268 55.6 (44.7)
EBITDA 160 453 243 52.1 (46.4) We model strong 67% yoy jump in revenues (like-for-like) aided by capacity
EBIT 25 304 73 193.8 (76.1) expansion
PBT 49 320 89 79.4 (72.3)
Reported PAT 44 286 79 80.1 (72.5)
Extraordinaries
We model 52% yoy growth in EBITDA as we model 180 bps contraction in EBITDA
Adjusted PAT 44 286 79 80.1 (72.5)
margin on like-for-like basis due to lower GMs and higher staff costs
EPS (Rs/share) 0.9 5.7 1.6 80.1 (72.5)
Marico
Net sales 14,854 17,543 14,645 (1.4) (16.5)
EBITDA 2,297 3,740 2,418 5.3 (35.3) We model 3.5% volume growth in domestic business led by -2%, 8% and 10%
EBIT 2,058 3,532 2,175 5.7 (38.4) volume growth in Parachute (rigids), Saffola (sustained recovery) and VAHO
PBT 2,164 3,753 2,325 7.4 (38.0) portfolio; price/mix-led deflation of ~5% due to sustained price cuts in Parachute
Reported PAT 1,507 2,679 1,652 9.6 (38.3) CNO. Overall revenues will decline marginally
Extraordinaries
Adjusted PAT 1,507 2,679 1,652 9.6 (38.3)
We model 6% EBITDA growth (like-for-like) aided by 90 bps yoy expansion in
EPS (Rs/share) 1.2 2.1 1.3 9.6 (38.3)
EBITDA margin
Nestle India
Net sales 17,424 22,717 24,760 42.1 9.0
EBITDA 2,920 4,513 4,933 69.0 9.3
Growth is not comparable due to zero Maggi sales in the base quarter (we model
EBIT 2,014 3,624 4,033 100.2 11.3
Rs5 bn revenues versus Rs4 bn in 2QCY16); we expect ex-Maggi portfolio
PBT 2,286 3,989 4,433 93.9 11.1
revenues to grow 14% yoy (up from 1-3% growth over last couple of quarter)
Reported PAT 1,242 2,308 2,870 131.1 24.3
aided by low base
Extraordinaries (491) (544) (100) (79.6) (81.6)
Adjusted PAT 1,733 2,853 2,970 71.4 4.1
EPS (Rs/share) 12.9 23.9 29.8 131.1 24.3
Margin expansion not comparable yoy (base quarter witnessed zero Maggi sales)
Page Industries
Net sales 4,614 5,724 5,709 23.7 (0.3)
EBITDA 1,014 1,092 1,172 15.6 7.3 We expect revenue growth to be driven by 19% volume growth and 4% price/mix-
EBIT 957 1,033 1,112 16.2 7.6 led growth (aided by recent price hikes) on a like-for-like basis
PBT 927 1,053 1,087 17.3 3.3
Reported PAT 603 679 707 17.2 4.0
Extraordinaries
We model 16% EBITDA growth (on like-for-like basis) as we expect EBITDA
Adjusted PAT 603 679 707 17.2 4.0
margin to contract due to lower GMs
EPS (Rs/share) 54.1 60.9 63.4 17.2 4.0
PC Jeweller
Net sales 16,696 16,645 19,634 17.6 18.0
EBITDA 1,886 2,057 2,295 21.7 11.6 We expect 18% revenue growth like-for-like (partially aided by higher gold prices)
EBIT 1,832 2,007 2,237 22.1 11.5 in domestic jewelry business and 15% growth in exports business (low base)
PBT 1,373 1,472 1,717 25.0 16.7
Reported PAT 932 1,066 1,717 84.2 61.1
Extraordinaries
We model 22% growth in EBITDA (like-for-like) due to higher operating leverage
Adjusted PAT 932 1,066 1,717 84.2 61.1
(aided by higher gold prices)
EPS (Rs/share) 5.2 6.0 9.6 84.2 61.1

India Strategy

Change (%)
Pidilite Industries
Net sales 13,201 15,694 14,520 10.0 (7.5)
EBITDA 3,002 3,939 3,362 12.0 (14.7) We model 10% volume growth and -2% price deflation in domestic CBP business
EBIT 2,673 3,682 3,097 15.9 (15.9) (due to higher discounts/rebates); industrial business is expected to post 10% yoy
PBT 2,765 3,887 3,249 17.5 (16.4) growth (low base) on a like-for-like basis
Reported PAT 1,917 2,700 2,248 17.3 (16.7)
Extraordinaries
Adjusted PAT 1,917 2,700 2,248 17.3 (16.7)
We model 12% yoy growth in EBITDA (like-for-like) aided by higher GMs
EPS (Rs/share) 3.7 5.3 4.4 17.3 (16.7)
S H Kelkar and Company
Net sales 2,086 2,559 2,484 19.1 (2.9)
We expect 19% growth in revenues (like-for-like) partly aided by contribution of
EBITDA 282 473 399 41.4 (15.7)
service income in domestic fragrance business (not in the base yet) and
EBIT 209 429 352 68.5 (18.0)
consolidation of HTT flavors business
PBT 174 442 367 110.7 (16.9)
Reported PAT 100 275 259 160.7 (5.8)
Extraordinaries
We model 41% yoy growth (like-for-like) in EBITDA aided by GM recovery (low
Adjusted PAT 100 275 259 160.7 (5.8)
base) and cost efficiencies
EPS (Rs/share) 0.8 1.9 1.8 138.5 (5.8)
Speciality Restaurants
Net sales 797 786 851 6.9 8.3
EBITDA 38 7 36 (6.5) 434.3 Discretionary spending environment remains weak. Revenue growth will be driven
EBIT (28) (102) (39) 40.0 (61.5) by store additions
PBT 10 (88) (19) (296.9) (78.1)
Reported PAT 10 (58) (14) (240.2) (75.4)
Extraordinaries
Adjusted PAT 10 (58) (14) (240.2) (75.4) We expect EBITDA margin to contract 60 bps yoy impacted by weak leverage
EPS (Rs/share) 0.2 (1.2) (0.3) (240.2) (75.4)
Tata Global Beverages
Net sales 20,345 17,342 17,420 (14.4) 0.5
We model 6% revenue growth yoy (like-for-like) aided by (1) 5% growth in
EBITDA 1,482 2,385 1,619 9.3 (32.1)
domestic tea business and (2) 5% growth in international business (aided by low
EBIT 1,123 2,022 1,249 11.3 (38.2)
base and strong growth in coffee business)
PBT 1,323 2,012 1,309 (1.0) (34.9)
Reported PAT 779 1,037 868 11.3 (16.3)
Extraordinaries (49) (17) (100.0) (100.0)
We model 23% yoy EBITDA growth on like-for-like basis aided by 120 bps
Adjusted PAT 828 1,054 868 4.8 (17.7)
expansion in EBITDA margin aided by higher GMs
EPS (Rs/share) 1.3 1.7 1.4 4.8 (17.7)
Titan Company
Net sales 26,735 27,988 32,250 20.6 15.2
We model (1) 28% growth in jewelry business led by 8% gold tonnage growth
EBITDA 2,028 2,922 3,089 52.4 5.7
(aided by Rs3.5 bn in incremental revenues from GHS; ex-GHS growth at 10%) and
EBIT 1,788 2,661 2,814 57.4 5.8
19% yoy jump in gold prices and (2) 2% revenue decline for the watches segment
PBT 1,815 2,706 2,849 57.0 5.3
(due to advancement of activation to 1QFY17)
Reported PAT 1,454 1,267 2,051 41.1 61.9
We expect EBITDA margin to expand 200 bps yoy (like-for-like) largely aided by
Adjusted PAT 1,454 1,916 2,051 41.1 7.1
sharp yoy expansion in jewelry business on account of higher gold prices and
EPS (Rs/share) 1.6 2.2 2.3 41.1 7.1
spike in studded share (low base)
United Breweries
Net sales 11,326 15,623 11,582 2.3 (25.9)
EBITDA 1,501 2,900 1,695 12.9 (41.6) We expect revenue growth to be driven by 8% volume growth and 3% realization
EBIT 903 2,264 1,045 15.7 (53.8) growth on a like-for-like basis
PBT 729 2,260 923 26.6 (59.2)
Reported PAT 482 1,471 603 25.0 (59.0)
Extraordinaries
We model 14% EBITDA growth on a like-for-like basis aided by 40 bps expansion
Adjusted PAT 482 1,471 603 25.0 (59.0)
in EBITDA margin
EPS (Rs/share) 1.8 5.5 2.3 25.0 (59.0)
United Spirits
Net sales 21,455 20,405 21,292 (0.8) 4.3
We expect overall volume growth of 4% driven by 14% growth in prestige
EBITDA 3,177 1,985 3,190 0.4 60.7
segment and 1% decline in regular segment; sale from Diageo brands is expected
EBIT 2,935 1,724 2,915 (0.7) 69.1
to contribute Rs2 bn (up 40% yoy). We model overall revenue growth of 11% yoy
PBT 1,895 908 2,065 9.0 127.4
on a like-for-like basis
Reported PAT 9,293 438 1,352 (85.5) 208.6
Extraordinaries 7,995 (217)
Adjusted PAT 1,299 655 1,352 4.1 106.3 On a like-for-like basis, we expect 6% EBITDA growth yoy as we model 80 bps
EPS (Rs/share) 8.9 4.5 9.3 4.1 106.3 contraction due to higher A&SP and overheads

Strategy India

Change (%)
Energy
BPCL
Net sales 464,736 469,387 489,367 5.3 4.3
EBITDA 13,321 39,192 25,542 91.7 (34.8) Historical comparison is not meaningful due to one-off charges related to
EBIT 9,149 34,877 21,047 130.0 (39.7) inventory and forex movement in the previous quarters
PBT 14,940 37,415 26,244 75.7 (29.9)
Reported PAT 10,180 26,205 17,715 74.0 (32.4)
Extraordinaries Lower qoq profits reflect moderation of refining margins to US$5.1/bbl from
Adjusted PAT 10,180 26,205 17,715 74.0 (32.4) US$6.1/bbl reported in the previous quarter and negligible adventitious gains
EPS (Rs/share) 7.0 18.1 12.2 74.0 (32.4) versus large gains (Rs12.8 bn) in 1QFY17
Cairn India
Net sales 22,421 18,851 19,899 (11.3) 5.6
EBITDA 9,789 7,950 8,840 (9.7) 11.2 Qoq improvement in EBITDA reflects (1) higher realization due to lower discount
EBIT 463 (166) 675 45.8 NM for Rajasthan crude and (2) modest increase in production volumes
PBT 5,417 3,691 5,834 7.7 58.1
Reported PAT 6,727 3,596 3,850 (42.8) 7.1
Extraordinaries
We assume a sequential increase in Cairn's share of production volumes to 127.4
Adjusted PAT 6,727 3,596 3,850 (42.8) 7.1
kb/d from 125.4 kb/d in 1QFY17 and 128 kb/d in 2QFY16
EPS (Rs/share) 3.6 1.9 2.1 (42.8) 7.1
Castrol India
Net sales 7,843 9,708 8,212 4.7 (15.4)
EBITDA 2,159 3,173 2,478 14.8 (21.9) Yoy increase in profitability driven by 5% growth in volumes and improvement in
EBIT 2,065 3,024 2,383 15.4 (21.2) EBITDA margin to 30.2% due to lower base oil price
PBT 2,213 3,190 2,548 15.1 (20.1)
Reported PAT 1,432 2,069 1,682 17.4 (18.7)
Extraordinaries We assume (1) volumes of 47.6 mn liters versus 45.3 mn liters in 3QCY15 and
Adjusted PAT 1,432 2,069 1,682 17.4 (18.7) 56.6 mn liters in 2QCY16 and (2) EBITDA margin at 30.2% (+265 bps yoy, -250
EPS (Rs/share) 2.9 4.2 3.4 17.4 (18.7) bps qoq)
GAIL (India)
Net sales 141,389 107,067 137,148 (3.0) 28.1
EBITDA 8,184 15,933 15,761 92.6 (1.1) We expect EBITDA to remain steady qoq, as lower gas trading and LPG profitability
EBIT 4,957 12,578 12,314 148.4 (2.1) will be offset by higher contribution from petchem and gas transmission segments
PBT 6,339 11,965 13,336 110.4 11.5
Reported PAT 4,405 13,352 9,202 108.9 (31.1)
Extraordinaries 260 4,893
We model an increase in gas transmission volumes to 97.5 mcm/d from 96.4
Adjusted PAT 4,405 13,352 9,202 108.9 (31.1)
mcm/d in 1QFY17 and 90.3 mcm/d in 2QFY16
EPS (Rs/share) 3.5 10.5 7.3 108.9 (31.1)
GSPL
Net sales 2,528 2,581 2,698 6.8 4.5
EBITDA 2,242 2,333 2,404 7.2 3.0 Sequential growth in revenues and EBITDA reflects an increase in transmission
EBIT 1,778 1,903 1,942 9.2 2.0 volumes
PBT 1,685 1,881 1,933 14.7 2.8
Reported PAT 1,085 1,213 1,256 15.7 3.6
Extraordinaries
We assume (1) gas volumes at 25.8 mcm/d (+3% qoq) and (2) transmission tariffs
Adjusted PAT 1,085 1,213 1,256 15.7 3.6
at Rs1.08/scm (+1% qoq)
EPS (Rs/share) 1.9 2.2 2.2 15.6 3.6
HPCL
Net sales 420,723 448,408 456,083 8.4 1.7
EBITDA (578) 36,268 20,054 NM (44.7) Historical comparison is not meaningful due to one-off charges related to
EBIT (6,007) 30,160 13,803 NM (54.2) inventory and forex movement in the previous quarters
PBT (4,704) 31,518 15,520 NM (50.8)
Reported PAT (3,205) 20,984 10,245 NM (51.2)
Extraordinaries Lower qoq profits reflect moderation of refining margins to US$4.4/bbl from
Adjusted PAT (3,205) 20,984 10,245 NM (51.2) US$6.8/bbl in the previous quarter and limited adventitious gains versus large
EPS (Rs/share) (3.2) 20.6 10.1 NM (51.2) gains (Rs11 bn) in the previous quarter
EBITDA margin (%) (0.1) 8.1 4.4 453 bps -370 bps
Indraprastha Gas
Net sales 9,692 8,997 9,661 (0.3) 7.4
EBITDA 1,914 2,596 2,743 43.4 5.7 Strong yoy growth in EBITDA reflects (1) 12.5% increase in volumes and (2) higher
EBIT 1,519 2,131 2,265 49.1 6.3 gross margins post decline in domestic gas price
PBT 1,557 2,211 2,361 51.6 6.8
Reported PAT 1,016 1,480 1,558 53.4 5.3
Extraordinaries
We assume (1) higher gas sales volumes at 422 mcm versus 395 mcm in 1QFY17
Adjusted PAT 1,016 1,480 1,558 53.4 5.3
and (2) modestly lower unit EBITDA at Rs6.5/scm versus Rs6.6/scm in 1QFY17
EPS (Rs/share) 7.3 10.6 11.1 53.4 5.3

India Strategy

Change (%)
IOCL
Net sales 853,848 860,807 883,954 3.5 2.7
EBITDA 6,949 136,835 69,110 894.6 (49.5) Historical comparison is not meaningful due to one-off charges related to
EBIT (4,337) 122,485 54,275 NM (55.7) inventory and forex movement in the previous quarters
PBT (5,865) 120,388 54,816 NM (54.5)
Reported PAT (3,292) 82,690 36,184 NM (56.2)
Extraordinaries 4,261 Sharp qoq decline in net profits reflects moderation of refining margins to
Adjusted PAT (6,057) 82,690 36,184 NM (56.2) US$4.1/bbl from US$10/bbl reported in 1QFY17 boosted by large adventitious
EPS (Rs/share) (2.5) 34.1 14.9 NM (56.2) gains
Mahanagar Gas
Net sales 4,834 4,987 3.2
Moderate sequential growth in EBITDA reflects (1) 2.5% qoq increase in volumes
EBITDA 1,524 1,540 1.1
and (2) steady per unit gross margins
EBIT 1,307 1,321 1.0
Adjusted PAT 927 951 2.6
We assume (1) higher gas volumes at 233 mcm versus 227 mcm in 1QFY17 and
EPS (Rs/share) 9.4 9.6 2.6
(2) modestly lower unit EBITDA at Rs6.6/scm versus Rs6.7/scm in 1QFY17
EBITDA margin (%) 31.5 30.9 -64 bps
ONGC
Net sales 206,796 177,848 181,373 (12.3) 2.0
EBITDA 105,077 93,905 91,110 (13.3) (3.0) Sequential decline in EBITDA despite modest increase in volumes and net crude
EBIT 59,003 56,908 50,719 (14.0) (10.9) realizations reflects our assumptions of higher operating expenses
PBT 70,380 63,512 60,706 (13.7) (4.4)
Reported PAT 48,420 42,325 40,066 (17.3) (5.3)
Extraordinaries
Sharp yoy decline in profitability driven by (1) lower domestic gas price
Adjusted PAT 48,420 42,325 40,066 (17.3) (5.3)
(-US$1.8/mn BTU) and (2) lower net crude realizations (-US$2.7/bbl)
EPS (Rs/share) 5.7 4.9 4.7 (17.3) (5.3)
Oil India
Net sales 25,314 22,212 22,503 (11.1) 1.3
EBITDA 9,419 9,247 9,044 (4.0) (2.2) Modest qoq decline in EBITDA despite higher revenues reflects an increase in
EBIT 6,818 6,340 6,085 (10.8) (4.0) operating expenses
PBT 10,198 7,746 9,093 (10.8) 17.4
Reported PAT 6,748 4,944 6,002 (11.1) 21.4
Extraordinaries Yoy decline in EBITDA driven by (1) lower domestic gas price (-US$1.8/mn BTU)
Adjusted PAT 6,748 4,944 6,002 (11.1) 21.4 and (2) lower net crude realizations (-US$2.9/bbl), partially offset by higher gas
EPS (Rs/share) 11.2 8.2 10.0 (11.1) 21.4 volumes
Petronet LNG
Net sales 75,450 53,373 64,161 (15.0) 20.2
EBITDA 4,668 6,425 5,909 26.6 (8.0) Qoq decline in EBITDA reflects (1) moderation in marketing margins on spot
EBIT 3,860 5,619 5,039 30.5 (10.3) volumes and (2) increase in cost of internal consumption and operating expenses
PBT 3,608 5,556 4,970 37.7 (10.5)
Reported PAT 2,488 3,779 3,380 35.8 (10.6)
Extraordinaries
We assume modest sequential increase in LNG re-gasification volumes to 170 tn
Adjusted PAT 2,488 3,779 3,380 35.8 (10.6)
BTUs versus 168.1 tn BTUs in 1QFY17 and 156.6 tn BTUs in 2QFY16
EPS (Rs/share) 3.3 5.0 4.5 35.8 (10.6)
Reliance Industries
Net sales 608,170 534,960 566,454 (6.9) 5.9
EBITDA 98,330 108,170 102,358 4.1 (5.4) Qoq decline in EBITDA reflects weaker refining margins, which is partially offset by
EBIT 74,610 88,670 81,749 9.6 (7.8) higher crude throughput and stronger petrochemical margins
PBT 83,840 99,760 96,429 15.0 (3.3)
Reported PAT 65,610 75,480 72,900 11.1 (3.4)
Extraordinaries
We assume lower refining margins at US$9.5/bbl as compared to US$11.5/bbl in
Adjusted PAT 65,610 75,480 72,900 11.1 (3.4)
1QFY17 and US$10.6/bbl in 2QFY16
EPS (Rs/share) 20.3 23.4 22.6 11.1 (3.4)
Industrials
ABB
Net sales 19,690 21,015 21,281 8.1 1.3
We expect a modest 8% yoy growth in revenues in 3QCY16, most of it led by
EBITDA 1,557 1,701 2,078 33.4 22.2
DA&M segment growth of over 20% yoy with other segments in low-single digits.
EBIT 1,198 1,344 1,687 40.7 25.5
However, we expect ordering to pick up over the next few quarters
PBT 954 1,208 1,540 61.4 27.5
Reported PAT 587 774 1,031 75.6 33.2
Extraordinaries
We expect broad margin uptick to continue yoy; key monitorable is the power grid
Adjusted PAT 587 774 1,031 75.6 33.2
business, one of the biggest revenue contributors for the company
EPS (Rs/share) 2.8 3.7 4.9 75.6 33.2
BHEL
Net sales 59,380 56,225 63,506 6.9 13.0
Environmental clearances will delay full recovery, but renewed focus on executing
EBITDA (4,742) 710 1,060 NM 49.3
jobs at hand (as demonstrated in the last quarter) could lead to modest yoy
EBIT (6,991) (1,471) (1,142) (83.7) (22.4)
growth in the power segment (+5% yoy). Industry segment likely to remain weak
PBT (3,302) 965 1,549 NM 60.4
Reported PAT (2,049) 778 1,038 NM 33.4
Extraordinaries
The company may post positive EBITDA given tighter control on raw material
Adjusted PAT (2,049) 778 1,038 NM 33.4
(especially JDU-related) and staff costs
EPS (Rs/share) (0.8) 0.3 0.4 NM 33.4
EBITDA margin (%) (8.0) 1.3 1.7 965 bps 40 bps

Strategy India

Change (%)
Carborundum Universal
Net sales 5,209 5,321 5,897 13.2 10.8
EBITDA 791 811 966 22.1 19.1
We expect healthy double-digit revenue growth across segments
EBIT 556 577 723 30.0 25.3
PBT 537 570 736 37.2 29.2
Reported PAT 390 401 460 18.1 14.9
Extraordinaries 125.3
Adjusted PAT 312 401 460 47.8 14.9 We expect margin levels to improve on operating leverage benefits
EPS (Rs/share) 1.7 2.1 2.5 47.8 14.9
Cummins India
Net sales 11,977 12,590 12,325 2.9 (2.1)
We expect strong yoy revenue growth in industrial and automotive (on low base)
EBITDA 2,007 2,063 2,021 0.7 (2.0)
verticals. Exports will likely be down 4-5% yoy on weak global macro (LHP
EBIT 1,808 1,857 1,810 0.1 (2.6)
exports decline as seen in previous 2-3 quarters)
PBT 2,405 2,252 2,360 (1.9) 4.8
Reported PAT 1,986 1,812 1,906 (4.1) 5.2
Extraordinaries
Adjusted PAT 1,986 1,812 1,906 (4.1) 5.2 We expect EBITDA margin to be stable, flat yoy and qoq
EPS (Rs/share) 7.2 6.5 6.9 (4.1) 5.2
Havells India
Net sales 13,498 14,668 15,621 15.7 6.5
EBITDA 1,876 2,012 2,231 18.9 10.9 We expect strong double-digit revenue growth across segments (including Cables
EBIT 1,648 1,732 1,947 18.2 12.4 & Wires despite copper price decline on a strong 20%+ volume growth)
PBT 1,714 2,022 2,221 29.5 9.8
Reported PAT 1,207 1,456 1,599 32.4 9.8
Extraordinaries (13) We expect contribution margin to improve across most segments except in cables
Adjusted PAT 1,216 1,456 1,599 31.5 9.8 & wires where the decline in copper prices (down 9.5% yoy during the quarter) will
EPS (Rs/share) 1.9 2.3 2.6 31.5 9.8 be passed on to customers
Kalpataru Power Transmission
Net sales 9,464 11,874 13,447 42.1 13.2
EBITDA 1,066 1,308 1,398 31.2 6.9 We expect low base of revenues in 2QFY16 to reflect in strong yoy growth; expect
EBIT 855 1,113 1,177 37.6 5.8 start of execution of recent order wins to grow revenues qoq
PBT 627 988 1,034 64.9 4.7
Reported PAT 410 645 678 65.2 5.0
Extraordinaries
We expect EBITDA margin to be in line with the 10.5% company guidance for the
Adjusted PAT 410 645 678 65.2 5.0
full year; yoy lower interest cost to translate into strong PAT growth
EPS (Rs/share) 2.7 4.2 4.4 65.2 5.0
KEC International
Net sales 20,209 17,847 21,935 8.5 22.9
EBITDA 1,548 1,496 1,733 11.9 15.8 We expect modest yoy growth in revenues on reduced lower backlog and
EBIT 1,337 1,205 1,472 10.1 22.2 commodity price pressure
PBT 689 535 777 12.7 45.1
Reported PAT 441 309 466 5.6 50.7
Extraordinaries
We expect EBITDA margin to increase yoy as benefits of execution of recent order
Adjusted PAT 441 309 466 5.6 50.7
wins more than compensate for losses from remaining legacy orders
EPS (Rs/share) 1.7 1.2 1.8 5.6 50.7
L&T
Net sales 233,932 218,738 249,663 6.7 14.1
We expect infrastructure segment to drive revenue growth and expect continued
EBITDA 25,917 19,050 27,770 7.2 45.8
decline in power, MMH and Heavy Engineering segments. Overall yoy revenue
EBIT 18,981 14,402 22,711 19.7 57.7
growth may get limited to high single-digit levels
PBT 12,894 14,052 21,273 65.0 51.4
Reported PAT 9,959 6,096 12,086 21.4 98.3
Extraordinaries 3,096
We model 9.3% consolidated (ex-services) EBITDA margin, up 100-120 bps yoy
Adjusted PAT 6,863 6,096 12,086 76.1 98.3
on gradual uptick across all segments
EPS (Rs/share) 7.4 6.6 13.0 76.1 98.3
Siemens
Net sales 32,995 26,204 31,377 (4.9) 19.7
We expect strong double-digit yoy revenue growth in most segments except for a
EBITDA 2,817 2,338 3,262 15.8 39.5
decline in power & gas segment. The sale of the healthcare division will reflect in
EBIT 2,342 1,713 2,847 21.6 66.2
the financials from 2QFY17
PBT 2,726 1,971 3,427 25.7 73.9
Reported PAT 2,191 1,300 2,296 4.8 76.5
Extraordinaries 467
We expect margin to be sequentially stable across segments, although we note
Adjusted PAT 1,725 1,300 2,296 33.1 76.5
that margin volatility across segments has been the hallmark of Siemens
EPS (Rs/share) 5 4 6 33.1 76.5

India Strategy

Change (%)
Thermax
Net sales 10,565 8,145 10,082 (4.6) 23.8
We model 4-5% yoy revenue decline in both energy and environment segments
EBITDA 996 637 981 (1.5) 53.9
given the continued weakness in private capex and declining backlog (down 15%
EBIT 839 469 810 (3.5) 72.7
yoy as of 1QFY17)
PBT 968 673 1,035 6.8 53.7
Reported PAT 648 452 704 8.5 55.6
Extraordinaries
We expect margin to be flat yoy, although better sequentially (noting the negative
Adjusted PAT 648 452 704 8.5 55.6
impact of ECL provisions in the last quarter)
EPS (Rs/share) 5.4 3.8 5.9 8.5 55.6
Voltas
Net sales 10,598 18,448 10,500 (0.9) (43.1)
We build in a strong double-digit yoy growth in UCP while MEP segment will
EBITDA 595 1,892 556 (6.4) (70.6)
continue to face challenges, especially in the Middle East (low single-digit decline).
EBIT 527 1,826 477 (9.4) (73.9)
EPS revenues to remain flat yoy as mining capex is still elusive
PBT 821 2,239 856 4.2 (61.8)
Reported PAT 444 1,576 557 25.3 (64.7)
Extraordinaries 9 Our margin estimates build in continued strong UCP profitability (up 50 bps yoy)
Adjusted PAT 446 1,588 557 24.8 (65.0) and gradual normalization in MEP segment given current focus on closure of
EPS (Rs/share) 1.3 4.8 1.7 24.8 (65.0) legacy projects and strict margin threshold for new bids
Infrastructure
Adani Port and SEZ
Net sales 18,423 18,266 18,945 2.8 3.7
EBITDA 12,051 11,698 12,030 (0.2) 2.8 We build modest yoy volumes growth for Mundra; other ports will support healthy
EBIT 9,295 8,888 9,130 (1.8) 2.7 overall volume growth
PBT 7,092 8,787 7,634 7.6 (13.1)
Reported PAT 6,675 8,357 7,019 5.2 (16.0)
Extraordinaries 161 179 32 (80.4) (82.4)
Adjusted PAT 6,675 8,357 7,019 5.2 (16.0) We expect EBITDA margin to be modestly down qoq
EPS (Rs/share) 3.2 3.4 5.2 #DIV/0!
Ashoka Buildcon
Net sales 4,676 4,683 4,245 (9.2) (9.3)
EBITDA 652 596 467 (28.4) (21.6) We estimate modest revenue growth on a yoy basis (adjusted for land-sale
EBIT 487 472 323 (33.7) (31.7) income booked in the base) driven by start of new projects
PBT 453 478 399 (11.9) (16.5)
Reported PAT 315 308 289 (8.2) (6.1)
Extraordinaries
We expect high share of T&D segment in the revenue mix to lead to weak EBITDA
Adjusted PAT 315 308 289 (8.2) (6.1)
margin in 2QFY17
EPS (Rs/share) 2.0 1.9 1.8 (8.2) (6.1)
Container Corporation
Net sales 15,019 13,392 14,741 (1.9) 10.1
We expect 5% volume growth in EXIM and flat domestic volumes yoy. However,
EBITDA 3,161 2,619 3,014 (4.7) 15.1
lower lead distance (on cargo shift to Gujarat ports) would impact realization per
EBIT 2,286 1,778 2,107 (7.8) 18.5
TEU (expect 5-6% drop yoy)
PBT 3,144 2,470 2,865 (8.9) 16.0
Reported PAT 2,335 1,785 2,106 (9.8) 18.0
Extraordinaries
We expect segmental margin to be flat yoy and qoq for both EXIM and domestic
Adjusted PAT 2,335 1,785 2,106 (9.8) 18.0
cargo
EPS (Rs/share) 12.0 9.2 10.8 (9.8) 18.0
Gateway Distriparks
Net sales 2,609 2,782 2,833 8.6 1.8
EBITDA 655 555 658 0.5 18.6 We expect rail share gains from Tughlakabad ICD to drive yoy growth in revenues
EBIT 453 361 443 (2.1) 22.9 and direct port delivery to limit recovery in CFS operations
PBT 437 349 430 (1.7) 23.2
Reported PAT 306 232 302 (1.2) 30.3
Extraordinaries
Adjusted PAT 306 232 302 (1.2) 30.3 EBITDA margin will remain under pressure on weak overall demand
EPS (Rs/share) 2.8 2.1 2.8 (1.2) 30.3
Gujarat Pipavav Port
Net sales 1,491 1,672 1,790 20.1 7.1
We expect recent additions of shipping services and uptick in fertilizer imports to
EBITDA 765 1,002 1,074 40.5 7.2
support 7% sequential increase in revenues; yoy numbers non comparable due to
EBIT 537 751 803 49.4 6.8
low base
PBT 608 817 879 44.5 7.6
Reported PAT (677) 598 633 NM 5.9
We estimate EBITDA margin at the lower end of the 60-65% band shared by the
Adjusted PAT (73) 598 633 NM 5.9
management, below the 62% average of the past two quarters
EPS (Rs/share) (0.2) 1.2 1.3 NM 5.9

Strategy India

Change (%)
IRB Infrastructure
Net sales 11,492 15,173 13,253 15.3 (12.7)
EBITDA 6,050 7,740 7,138 18.0 (7.8) We expect modest growth in construction revenues on stiff base and steady traffic
EBIT 4,018 5,533 4,800 19.5 (13.2) growth
PBT 1,930 2,558 1,786 (7.5) (30.2)
Reported PAT 1,491 1,819 1,176 (21.1) (35.3)
Extraordinaries
Adjusted PAT 1,491 1,819 1,176 (21.1) (35.3) Change in mix of revenues to reflect in higher yoy EBITDA margin
EPS (Rs/share) 4.2 5.2 3.3 (21.1) (35.3)
Sadbhav Engineering
Net sales 7,459 8,070 7,139 (4.3) (11.5)
EBITDA 807 868 728 (9.8) (16.1) We expect modest yoy decline in revenues on depleted BOT backlog, partly
EBIT 593 614 479 (19.2) (21.9) compensated by the start of execution of recently-won EPC project wins
PBT 445 489 362 (18.8) (26.1)
Reported PAT 262 487 325 24.2 (33.2)
We expect weak margin in 2QFY17 based on stated target of closing low-margin
Adjusted PAT 380 487 325 (14.3) (33.2)
irrigation jobs
EPS (Rs/share) 2.2 2.8 1.9 (14.3) (33.2)
Internet
Info Edge
Net sales 1,741 1,976 2,048 17.6 3.6
EBITDA 334 478 527 57.9 10.2
We expect steady 18% yoy growth in the recruitment business
EBIT 283 418 465 64.2 11.1
PBT 478 661 672 40.7 1.7
Reported PAT 339 444 457 34.8 3.0
Extraordinaries
Estimates now also include the higher impact of ESOP expenses post Ind-AS
Adjusted PAT 339 444 457 34.8 3.0
implementation
EPS (Rs/share) 2.8 3.7 3.8 34.8 3.0
Just Dial
Net sales 1,713 1,763 1,869 9.1 6.0
EBITDA 397 293 327 (17.7) 11.8 We expect core business growth to remain tepid. We also expect a slowdown in
EBIT 318 203 234 (26.6) 15.1 Omni due to sales slowdown
PBT 581 490 414 (28.7) (15.4)
Reported PAT 463 389 311 (32.9) (20.2)
Extraordinaries
Adjusted PAT 463 389 311 (32.9) (20.2) We expect sequential increase in employee costs due to employee addition
EPS (Rs/share) 6.7 5.6 4.5 (32.9) (20.2)
Media
DB Corp.
Net sales 4,783 5,704 5,412 13.1 (5.1)
We expect 10% yoy growth in print ad revenue (1) aided by low base (ad
EBITDA 1,117 1,812 1,460 30.7 (19.4)
revenues declined 7% in 2Q last year), (2) partly offset by impact of early 'Pitru
EBIT 902 1,601 1,249 38.5 (22.0)
paksha' (2-week period when advertising is subdued). Circulation revenue growth
PBT 928 1,608 1,264 36.2 (21.4)
would be steady at 14% yoy
Reported PAT 591 1,040 828 40.1 (20.4)
Extraordinaries
Adjusted PAT 591 1,040 828 40.1 (20.4) We estimate 360 bps yoy expansion in EBITDA margin driving 31% and 40% yoy
EPS (Rs/share) 3.2 5.7 4.5 40.1 (20.4) growth in EBITDA and net profit
DishTV
Net sales 7,524 7,786 8,086 7.5 3.9
EBITDA 2,550 2,646 2,811 10.2 6.2 We estimate 350K net subscriber additions and 1% qoq increase in ARPU to
EBIT 1,220 1,034 1,261 3.4 22.0 Rs167
PBT 870 631 871 0.1 37.9
Reported PAT 870 409 583 (32.9) 42.8
Extraordinaries
We estimate EBITDA margin to improve 80 bps qoq to 34.8% largely driven by
Adjusted PAT 870 409 583 (32.9) 42.8
ARPU growth. A yoy decline in net profits reflects full tax rate versus nil in FY2016
EPS (Rs/share) 0.8 0.4 0.5 (32.9) 42.8
Jagran Prakashan
Net sales 5,195 4,734 5,555 6.9 17.3
EBITDA 1,469 1,304 1,580 7.5 21.1 We expect 8%, 6% and 15% yoy growth in print ad revenues, circulation revenues
EBIT 1,182 1,115 1,330 12.5 19.3 and radio revenues.
PBT 1,094 1,093 1,305 19.2 19.4
Reported PAT 913 737 887 (2.8) 20.5
Extraordinaries 145
We expect EBITDA margin to be flat yoy. Note that, qoq financials are not
Adjusted PAT 782 737 887 13.4 20.5
comparable as Jagran reported standalone financials in 1QFY17
EPS (Rs/share) 2.4 2.3 2.7 13.4 20.5

India Strategy

Change (%)
Ortel Communications
Net sales 458 524 554 21.0 5.7
We estimate 7%/40% qoq/yoy growth in subscription revenues
EBITDA 148 134 175 17.8 30.6
(cable+broadband) and 6%/21% growth in total revenues. We expect 7K/60K net
EBIT 71 66 85 20.0 29.3
additions to 85K/753K Broadband/cable subscribers
PBT 36 9 26 (27.6) 200.2
Reported PAT 28 9 16 (43.3) 86.5 We expect strong 31% sequential growth in EBITDA led by (1) reduction in content
Extraordinaries cost following renegotiation of contracts with Star and Indiacast based on RIO
Adjusted PAT 28 9 16 (43.3) 86.5 rates, (2) stable other operating costs, and (3) healthy growth in subscription
EPS (Rs/share) 0.9 0.3 0.5 (43.3) 86.5 revenues in line with subscriber growth. Bad debt provision and churn are key
EBITDA margin (%) 32.4 25.6 31.6 -84 bps 602 bps metrics to watch
PVR
Net sales 4,746 5,702 5,315 12.0 (6.8) 2QFY17 Box Office collections growth was muted due high base (Bajrangi Bhaijaan
EBITDA 905 1,167 870 (3.9) (25.4) and Bahubali in 2QFY16) and weak performance of a few movies such as
EBIT 608 836 520 (14.4) (37.8) Mohenjodaro. We estimate (1) 1.5% yoy decline in footfalls to 18.5 mn despite
PBT 496 707 360 (27.5) (49.1) addition of 29 screens of DT cinemas (consolidated from June 2016); cmparable
Reported PAT 411 428 239 (41.7) (44.1) properties footfalls will be down 15%, (2) about 6% and 14% yoy growth in
Extraordinaries (26) average ticket price and F&B spends per head and (3) about 20% growth in
Adjusted PAT 411 428 239 (41.7) (44.1) advertisement revenues
EPS (Rs/share) 8.8 9.2 5.1 (41.7) (44.1) EBITDA margin will likely be down 270 bps yoy to 16.4% largely due to 500 bps
EBITDA margin (%) 19.1 20.5 16.4 -271 bps -409 bps decline in occupancy to about 32%
Sun TV Network
Net sales 5,681 7,608 6,227 9.6 (18.2)
EBITDA 3,330 3,487 3,709 11.4 6.4 We estimate 6% yoy growth in advertisement revenues, significant improvement
EBIT 3,147 3,357 3,549 12.8 5.7 over 2.7% yoy decline in 1QFY17, led by market share recovery of Telugu and
PBT 3,349 3,573 3,799 13.4 6.3 Malayalam GECs and steady ad growth in Tamil market
Reported PAT 2,184 2,333 2,507 14.8 7.5
Extraordinaries
We expect 17%/20% growth in domestic DTH/cable subscription revenues. We
Adjusted PAT 2,184 2,333 2,507 14.8 7.5
expect EBIT margin to improve 160 bps yoy to 57%. Sharp sequential
EPS (Rs/share) 5.5 5.9 6.4 14.8 7.5
improvement in margin is due to the absence of IPL losses (seasonal)
Zee Entertainment Enterprises
Net sales 13,849 15,716 16,349 18.1 4.0 We expect TV industry advertisement growth to moderate to 11-12% yoy in the
September quarter from 13-14% in the June quarter largely due to softness in
EBITDA 3,546 4,532 4,802 35.4 6.0
FMCG and ecommerce advertisement spends. Zees advertisement revenue growth
EBIT 3,349 4,280 4,532 35.4 5.9
will decelerate on similar lines. We expect Zee to deliver 14.5% yoy growth in
PBT 3,916 3,808 5,142 31.3 35.1 advertisement revenues largely driven by market share gains in the regional genres
Reported PAT 2,474 2,170 3,414 38.0 57.3
We expect domestic subscription revenue to grow 15% yoy. Success of Rustom
Adjusted PAT 2,338 3,363 3,051 30.5 (9.3)
movie (co-produced by Zee) will boost other sales. We expect 380 bps yoy
EPS (Rs/share) 2.4 3.5 3.2 30.5 (9.3)
increase in EBITDA margin to 29.4%. Adjusted EPS is EPS post RPS impact
Metals & Mining

Coal India
Net sales 169,576 177,961 167,611 (1.2) (5.8)
EBITDA 24,760 36,290 18,679 (24.6) (48.5) Weak volumes (-5% yoy) coupled with subdued e-auction pricing to weigh on
EBIT 18,896 29,619 12,271 (35.1) (58.6) earnings
PBT 38,518 46,293 30,788 (20.1) (33.5)
Reported PAT 25,437 30,653 20,320 (20.1) (33.7)
Extraordinaries 248
Our earnings factor in 11% qoq increase in employee cost on account of wage
Adjusted PAT 25,190 30,653 20,320 (19.3) (33.7)
provisions
EPS (Rs/share) 4.0 4.9 3.2 (19.3) (33.7)
Hindalco Industries
Net sales 89,246 75,973 83,863 (6.0) 10.4
EBITDA 6,028 11,325 13,058 116.6 15.3 We model aluminum deliveries of 312,500 tons (+16% yoy, +1% qoq) from the
EBIT 3,070 7,943 9,642 214.1 21.4 ramp-up of Aditya smelter
PBT 1,086 4,131 5,882 441.7 42.4
Reported PAT 1,033 2,941 4,117 298.7 40.0
Extraordinaries (2) We expect aluminum EBITDA of Rs8.8 bn (Rs2.7 bn in 2QFY16, +4% qoq) and
Adjusted PAT 1,033 2,942 4,117 298.7 39.9 copper EBITDA of Rs4.2 bn (+4% yoy). Our aluminum EBITDA estimates assume
EPS (Rs/share) 0.5 1.4 2.0 298.7 39.9 hedging gains
Hindustan Zinc
Net sales 40,333 25,306 34,374 (14.8) 35.8
We expect mined metal volumes to increase by 42% qoq to 180,000 tons (-25%
EBITDA 21,641 11,308 17,029 (21.3) 50.6
yoy) from increase in ore production and lower waste mining. We estimate refined
EBIT 19,891 7,664 14,683 (26.2) 91.6
zinc production of 143,000 tons (-32% yoy, +40% qoq) and lead production of
PBT 28,568 13,053 20,845 (27.0) 59.7
32,600 tons (-19% yoy, +30% qoq)
Reported PAT 22,853 10,368 16,564 (27.5) 59.8
Extraordinaries (5)
We expect silver volumes to increase 18% qoq to 105 tons (-6% yoy). The
Adjusted PAT 22,853 10,372 16,564 (27.5) 59.7
sequential improvement in earnings is also aided by higher zinc prices (+17% qoq)
EPS (Rs/share) 5.4 2.5 3.9 (27.5) 59.7
and lead prices (+9% qoq) beside higher volumes

Strategy India

Change (%)
Jindal Steel and Power
Net sales 50,402 46,962 49,060 (2.7) 4.5
EBITDA 9,765 9,917 9,734 (0.3) (1.8) We model steel volumes of 850,000 tons (+9% yoy, +9% qoq) led by ramp-up of
EBIT 4,760 746 472 (90.1) (36.7) Angul steel plant. Despite higher volumes, we expect EBITDA to decline in
PBT (2,533) (7,548) (7,905) 212.1 4.7 standalone operations by 3% qoq to Rs6.5 bn due to lower steel realizations
Reported PAT (6,180) (10,822) (6,366) 3.0 (41.2)
Extraordinaries (4,394) (6,257)
Adjusted PAT (1,785) (4,564) (6,366) 256.5 39.5 Jindal Power's generation has increased 5% qoq to 2,280 mn units (-16% yoy).
EPS (Rs/share) (2.0) (5.0) (7.0) 256.5 39.5 We estimate Jindal Power's EBITDA at Rs2 bn (+22 % yoy, +13% qoq)
JSW Steel
Net sales 109,069 117,080 123,211 13.0 5.2
EBITDA 17,293 32,694 28,879 67.0 (11.7) We model steel deliveries (standalone) of 3.7 mn tons (+11% qoq, +16% yoy) led
EBIT 10,471 24,380 20,481 95.6 (16.0) by ramp-up of new capacities at Dolvi, Vijaynagar
PBT 2,498 15,356 11,367 355.1 (26.0)
Reported PAT 1,170 11,090 8,215 602.4 (25.9)
Weaker domestic steel prices (-Rs1,250/ton qoq) and increase in coking coal costs
Adjusted PAT 1,176 11,090 8,215 598.7 (25.9)
will result in lower sequential EBITDA/ton of Rs7,400/ton (-20% qoq, +51% yoy)
EPS (Rs/share) 4.9 45.9 34.0 598.7 (25.9)
National Aluminium Co.
Net sales 18,151 15,490 17,937 (1.2) 15.8
EBITDA 3,393 1,946 2,398 (29.3) 23.2 We build in alumina sales of 347,000 tons (+10% yoy, +19% qoq) and aluminum
EBIT 2,321 758 1,198 (48.4) 58.0 sales of 97,000 tons (+4 % yoy, +17% qoq)
PBT 3,581 2,089 2,542 (29.0) 21.7
Reported PAT 2,261 1,350 1,678 (25.8) 24.3
Extraordinaries
Adjusted PAT 2,261 1,350 1,678 (25.8) 24.3 The decline in earnings is led by weaker alumina realizations (-23% yoy, -9% qoq)
EPS (Rs/share) 0.9 0.5 0.7 (25.8) 24.3
NMDC
Net sales 16,022 17,207 15,517 (3.2) (9.8)
EBITDA 9,023 8,164 7,433 (17.6) (9.0) We build in iron ore sales of 7.2 mn tons (+12% yoy, -6% qoq). We expect iron
EBIT 8,517 7,605 6,867 (19.4) (9.7) ore exports at 0.7 mn tons
PBT 12,781 10,975 10,354 (19.0) (5.7)
Reported PAT 8,102 7,114 6,833 (15.7) (3.9)
We expect blended realizations of Rs2,150/ton (-13% yoy, -4% qoq). We estimate
Adjusted PAT 8,256 7,114 6,833 (17.2) (3.9)
EBITDA/ton to decline 5% qoq to Rs1,120 (+3% yoy) due to lower iron-ore prices
EPS (Rs/share) 2.1 1.8 1.7 (17.2) (3.9)
Vedanta
Net sales 165,609 144,371 161,354 (2.6) 11.8
The sequential EBITDA increase is led by (1) HZ (Rs17 bn, +51 % qoq) from higher
EBITDA 39,998 35,064 41,781 4.5 19.2
ore mining and strong commodity prices, (2) aluminum (Rs4.2 bn, +59 % qoq)
EBIT 23,395 20,144 26,298 12.4 30.6
from ramp-up of new smelters, and (3) power business (Rs3.7 bn, +9 % qoq)
PBT 21,366 16,480 22,463 5.1 36.3
Reported PAT 9,740 6,150 9,224 (5.3) 50.0
Extraordinaries We expect weaker EBITDA in (1) iron ore segment (Rs1.5 bn, -60% qoq) due to
Adjusted PAT 9,740 6,150 9,224 (5.3) 50.0 lower Goa volumes in the monsoon season and (2) Zinc International (Rs2.3 bn, -6
EPS (Rs/share) 3.3 2.1 3.1 (5.3) 50.0 % qoq) due to lower volumes
Tata Steel
Net sales 293,047 252,298 253,824 (13.4) 0.6
EBITDA 18,305 32,420 30,362 65.9 (6.3) We expect India steel deliveries of 2.5 mn tons (+7% yoy) led by ramp-up of KPO.
EBIT 4,597 20,002 16,339 255.4 (18.3) We expect India steel EBITDA/ton to decline sequentially to Rs8,920/ton (-14%
PBT (4,591) 10,662 4,958 NM (53.5) qoq,+12% yoy) due to weaker steel prices and increase in coking coal costs
Reported PAT 15,287 (32,067) 2,534 (83.4) NM
Extraordinaries 22,446 (35,231)
We expect EBITDA of US$40/ton (US$51/ton in 1QFY17) in European operations
Adjusted PAT (4,128) 3,164 2,534 NM (19.9)
due to lower spreads. We expect combined EBITDA of Rs8 bn in subsidiaries
EPS (Rs/share) (4.2) 3.3 2.6 NM (19.9)
(Rs10.2 bn in 1QFY17)
Others
Astral Poly Technik
Net sales 3,061 3,172 3,633 18.7 14.6
EBITDA 424 408 491 15.8 20.6
Yoy increase in revenues and profitability driven by 10% growth in volumes
EBIT 338 309 388 14.8 25.5
PBT 314 284 362 15.1 27.3
Reported PAT 167 163 229 37.1 40.5
Extraordinaries (57.7) (35.7) (15.0) (74.0) (58.0)
We assume sequential improvement in EBITDA margin to 13.5% versus 12.8% in
Adjusted PAT 167 163 229 37.1 40.5
1QFY17 and 13.9% in 2QFY16
EPS (Rs/share) 1.4 1.4 1.9 37.1 40.5

India Strategy

Change (%)
Cera Sanitaryware
Net sales 2,253 2,136 2,503 11.1 17.2
EBITDA 292 362 431 47.8 19.0
Faucets and tiles will drive growth
EBIT 252 322 389 54.4 20.8
PBT 276 328 384 39.3 17.3
Reported PAT 179 214 253 41.7 18.4
Extraordinaries
Adjusted PAT 179 214 253 41.7 18.4 We expect stable operating margin
EPS (Rs/share) 13.8 16.5 19.5 41.7 18.4
Dhanuka Agritech
Net sales 2,702 1,988 3,189 18.0 60.4
EBITDA 541 287 655 20.9 128.1 We expect 18% yoy growth in revenues, led by revival in demand on account of
EBIT 528 255 621 17.7 143.5 normal monsoon progress
PBT 535 278 645 20.8 132.2
Reported PAT 377 193 452 19.8 133.5
Extraordinaries
We expect EBITDA margin to expand 50 bps yoy mainly on account of lower input
Adjusted PAT 377 193 452 19.8 133.5
costs
EPS (Rs/share) 7.5 3.9 9.0 19.8 133.5
HSIL
Net sales 4,294 4,603 5,014 16.8 8.9
EBITDA 756 734 873 15.5 19.0
We expect better margin on account of changing product mix
EBIT 467 463 585 25.5 26.6
PBT 386 399 506 31.3 27.0
Reported PAT 243 265 339 39.5 28.2
Extraordinaries
Adjusted PAT 243 265 339 39.5 28.2 Debt could increase on new business set-up capex
EPS (Rs/share) 3.4 3.7 4.7 39.5 28.2
InterGlobe Aviation
Net sales 35,399 45,789 43,863 23.9 (4.2)
EBITDA 2,393 8,152 2,005 (16.2) (75.4) We expect revenues to increase by 24% yoy, on 35% growth in volumes and 8%
EBIT 1,111 7,004 822 (26.0) (88.3) decline in yields
PBT 1,620 7,467 1,168 (27.9) (84.4)
Reported PAT 1,147 5,918 818 (28.7) (86.2)
Extraordinaries
Adjusted PAT 1,147 5,918 818 (28.7) (86.2) We expect PAT to decline by 29% yoy, due to sharp decline in yield
EPS (Rs/share) 3.2 16.4 2.3 (28.7) (86.2)
Kaveri Seed
Net sales 934 4,940 843 (9.8) (82.9)
EBITDA (453) 1,583 125 NM (92.1) We expect 10% yoy growth (like-for-like) in revenues, supported by lower seed
EBIT (512) 1,505 45 NM (97.0) returns
PBT (458) 1,559 107 NM (93.1)
Reported PAT (475) 1,544 102 NM (93.4)
Extraordinaries
Adjusted PAT (475) 1,544 102 NM (93.4) Lower seed returns will lead to Kaveri improving profitability sharply on a yoy basis
EPS (Rs/share) (6.9) 22.4 1.5 NM (93.4)
EBITDA margin (%) (48.4) 32.0 14.9 6333 bps -1715 bps
PI Industries
Net sales 4,461 6,834 5,034 12.9 (26.3)
EBITDA 848 1,656 1,062 25.3 (35.8) We expect 15% and 24% growth (yoy) in domestic ag-chem and CSM business
EBIT 731 1,478 876 19.8 (40.8) revenues, respectively
PBT 760 1,575 917 20.6 (41.8)
Reported PAT 582 1,269 688 18.1 (45.8)
Extraordinaries 44
We expect margin to improve 110 bps yoy (like-for-like) on account of operating
Adjusted PAT 550 1,269 688 25.0 (45.8)
leverage benefits
EPS (Rs/share) 4.0 9.3 5.0 25.0 (45.8)
Rallis India
Net sales 5,017 4,677 6,238 24.3 33.4
EBITDA 966 752 1,172 21.3 55.9 We expect 15% and 10% yoy growth in revenues from standalone business and
EBIT 836 628 1,041 24.4 65.8 the seeds business, respectively
PBT 836 624 1,051 25.8 68.4
Reported PAT 573 1,742 724 26.5 (58.4)
We expect 27% yoy increase in PAT from a low base, on account of operating
Adjusted PAT 573 493 724 26.5 47.0
leverage benefits
EPS (Rs/share) 2.9 2.5 3.7 26.5 47.0

Strategy India

Change (%)
SRF
Net sales 11,646 12,192 11,812 1.4 (3.1)
EBITDA 2,375 2,904 2,731 15.0 (5.9)
We expect chemicals business to record 10% yoy growth in revenues
EBIT 1,644 2,170 1,976 20.2 (9.0)
PBT 1,355 1,943 1,736 28.1 (10.6)
Reported PAT 1,003 1,442 1,215 21.2 (15.7)
Extraordinaries
We expect PAT to grow strongly on a yoy basis, on account of strong margin
Adjusted PAT 1,003 1,442 1,215 21.2 (15.7)
expansion in all business segments
EPS (Rs/share) 17.5 25.1 21.2 21.2 (15.7)
Tata Chemicals
Net sales 49,969 36,519 43,996 (12.0) 20.5
EBITDA 6,416 6,159 6,489 1.1 5.4 We expect standalone operating margin to expand 130 bps yoy expecting
EBIT 5,245 4,715 5,031 (4.1) 6.7 continued strength in soda ash unit's margin
PBT 4,291 3,960 4,344 1.2 9.7
Reported PAT 2,549 2,062 2,505 (1.7) 21.5
Extraordinaries
Overseas soda ash subsidiaries will report steady margin (yoy) on stabilizing
Adjusted PAT 2,549 2,062 2,505 (1.7) 21.5
operations
EPS (Rs/share) 10 8 10 (1.7) 21.5
Teamlease Services
Net sales 6,878 7,496 9.0
EBITDA 62 91 46.0 Steady increase in core staffing business as well as apprentice business will drive
EBIT 52 78 50.2 sequential growth
PBT 110 125 13.4
Reported PAT 74 83 12.4
Extraordinaries
Adjusted PAT 74 83 12.4 ASAP business contribution for one month will also be earnings accretive
EPS (Rs/share) 4 5 12.4
EBITDA margin (%) 0.9 1.2 30 bps
UPL
Net sales 28,015 35,102 34,068 21.6 (2.9)
EBITDA 5,232 6,987 6,473 23.7 (7.4) We expect 10% yoy growth in revenues on like-for-like basis, led by strong
EBIT 4,119 5,296 4,748 15.3 (10.3) growth in LATAM and domestic market
PBT 2,549 4,319 3,835 50.5 (11.2)
Reported PAT 1,852 4,020 3,090 66.9 (23.1)
Extraordinaries (76) (281) (76) 0.0 (73.1)
We expect EBITDA margin to expand by 80 bps yoy on a like-for-like basis, on
Adjusted PAT 1,904 4,298 3,152 65.6 (26.7)
account of operating leverage benefits
EPS (Rs/share) 3.7 8.4 6.2 65.6 (26.7)
Whirlpool
Net sales 7,135 14,063 9,026 26.5 (35.8)
EBITDA 586 1,903 733 25.2 (61.5) We expect 15% yoy (like-for-like) growth in revenues, led mainly by volumes
EBIT 426 1,678 502 17.8 (70.1) growth
PBT 560 1,850 677 20.9 (63.4)
Reported PAT 376 1,220 474 26.1 (61.1)
Extraordinaries
We expect EBITDA margin to expand by 70 bps on a yoy basis (like-for-like),
Adjusted PAT 376 1,220 474 26.1 (61.1)
excluding excise duty
EPS (Rs/share) 3.0 9.6 3.7 26.1 (61.1)
Pharmaceuticals
Apollo Hospitals
Net sales 15,526 16,563 17,924 15.4 8.2
Yoy numbers are not comparable due to change in accounting standards
EBITDA 2,120 1,798 2,161 1.9 20.2
EBIT 1,515 1,069 1,411 (6.9) 31.9
We expect EBITDA margin to improve by 120 bps qoq as 1QFY17 was impacted
Adjusted PAT 1,095 505 761 (30.5) 50.7
by elections in Chennai
Biocon
Net sales 8,282 9,810 9,534 15.1 (2.8)
We expect revenue growth at 15% due to 20% growth in research services, which
EBITDA 1,886 2,540 2,229 18.2 (12.2)
will offset continued slow growth in biopharma and domestic formulations (~15%
EBIT 1,290 1,880 1,529 18.5 (18.7)
each). Our estimates for biopharma also reflect one-time changes to revenue
PBT 1,597 2,320 1,719 7.7 (25.9)
recognition that boosted 1QFY17 revenues by Rs700 mn
Reported PAT 3,059 1,670 1,159 (62.1) (30.6)
Extraordinaries 2,028 We expect 250 bps EBITDA margin decline on qoq basis, as we estimate 6.8%
Adjusted PAT 1,031 1,670 1,159 12.4 (30.6) R&D spend (5.3% in 4QFY16). This is after estimated Rs400 mn capitalization of
EPS (Rs/share) 5.1 8.3 5.8 12.4 (30.6) R&D (~4% of revenues). We expect 12% yoy EPS growth, although this translates
EBITDA margin (%) 22.8 25.9 23.4 60 bps -252 bps into ~30% qoq decline

India Strategy

Change (%)
Cipla
Net sales 34,524 35,937 37,930 9.9 5.5 We expect exports to grow by 12% yoy, benefitting from continued progress in
EBITDA 7,894 6,110 6,572 (16.8) 7.6 the US, where we expect Cipla to report sales of US$105 mn in the quarter. We
EBIT 6,554 4,502 4,922 (24.9) 9.3 expect domestic formulations growth to bounce back to 13% helped by stronger
PBT 6,311 4,441 5,022 (20.4) 13.1 anti-infectives season. We expect South Africa to show 10% qoq growth although
Reported PAT 4,312 3,653 4,038 (6.4) 10.5 we see a yoy decline due to ZAR currency movements
Extraordinaries We expect EBITDA margin at 17.3%, ~550 bps decline yoy, although this is not
Adjusted PAT 4,312 3,653 4,038 (6.4) 10.5 comparable due to high contribution of Nexium to profits in 2QFY16. We expect
R&D to increase to 7.5% of sales and EPS to grow by 11% yoy, although this
EPS (Rs/share) 5.4 4.5 5.0 (6.4) 10.5
translates into 6% yoy decline due to high contribution of Nexium to profits in
EBITDA margin (%) 22.9 17.0 17.3 -554 bps 32 bps 2QFY16
Dr Lal Pathlabs
Net sales 2,157 2,228 2,546 18.0 14.2
EBITDA 363 610 730 101.0 19.7
We expect revenue growth of 18% led by strong growth in patient volumes. We
EBIT 292 545 662 126.8 21.4
expect realizations/sample to remain flat qoq
PBT 341 605 727 113.1 20.1
Reported PAT 62 404 483 680.3 19.5
Adjusted PAT 375 402 483 28.8 20.1 We expect EBITDA margin to improve to 28.7% led by outbreak of dengue and
EPS (Rs/share) 4.5 4.9 5.8 28.8 20.1 Chikungunya in Delhi NCR region
Dr Reddy's Laboratories
Net sales 39,934 32,345 32,345 (19.0) 0.0 We expect 2QFY17 to be largely a repeat of 1QFY17 with revenues likely to
EBITDA 11,448 3,773 5,697 (50.2) 51.0 decline by 12% yoy as we expect continued pressures on the base business in the
US although we do build in a slight recovery to US$240 mn US sales. We forecast
EBIT 8,982 1,092 2,957 (67.1) 170.8
12% growth for India, while we expect Russia and RoW including Venezuela to
PBT 9,086 1,633 3,453 (62.0) 111.5 decline by 15% and 40% yoy respectively. We expect PSAI to remain muted with
Reported PAT 7,263 1,263 2,810 (61.3) 122.5 2% yoy decline
Extraordinaries We expect EBITDA margin to expand by 600 bps qoq, helped by cost controls
Adjusted PAT 7,263 1,263 2,810 (61.3) 122.5 including lower remediation expenses although this still translates into 11 pps
EPS (Rs/share) 42.5 7.4 16.4 (61.3) 122.5 decline on a yoy basis.. We expect EPS to decline by 61% yoy and more than
EBITDA margin (%) 28.7 11.7 17.6 -1106 bps 594 bps double on a qoq basis due to base effect in 1QFY17
HCG
Net sales 1,437 1,676 1,701 18.4 1.5
EBITDA 230 236 245 6.5 3.7
Yoy numbers are not comparable due to change in accounting standards
EBIT 119 111 117 (1.8) 5.7
PBT 39 79 72 83.2 (8.6)
Reported PAT 22 50 47 116.7 (6.3)
We expect EBITDA margin to improve by 30 bps qoq as benefits from decline in
Adjusted PAT 22 50 47 116.7 (6.3)
losses from new centers will be offset by the ongoing unrest in Bangalore
EPS (Rs/share) 0.3 0.6 0.6 116.7 (6.3)
Lupin
Net sales 33,213 44,394 45,292 36.4 2.0
We expect US business to decline by US$40 mn qoq driven by lower pricing for
EBITDA 6,721 13,080 12,342 83.6 (5.6)
Fortamet, as well as marginal impact from Glumetza competition. We expect Japan
EBIT 5,653 11,053 10,092 78.5 (8.7)
to show strong 15% yoy growth while India is likely to be stable with 13%
PBT 5,967 11,560 10,082 69.0 (12.8)
growth. We expect South Africa to grow by 15% yoy and RoW by 12%
Reported PAT 4,089 8,819 7,354 79.9 (16.6)
Extraordinaries
We expect EBITDA margin to contract by 220 bps qoq, driven by lower benefits of
Adjusted PAT 4,089 8,819 7,354 79.9 (16.6)
Glumetza exclusivity and Fortamet price increase effected earlier. We expect EPS to
EPS (Rs/share) 9.1 19.6 16.3 79.9 (16.6)
grow by 80% yoy but decline by 17% qoq
Sun Pharmaceuticals
Net sales 68,033 82,450 79,366 16.7 (3.7) We expect Taro revenues to stabilize at US$230 mn versus US$235 mn in 1QFY17.
We expect SUNP's ex-Taro US revenues at US$215 mnm down from US$279 mn in
EBITDA 18,994 29,230 24,991 31.6 (14.5)
1QFY17, driven by declining qoq contribution from Gleevec, as well as US$30 mn
EBIT 16,282 26,070 21,691 33.2 (16.8) non-recurring sales booked in 1QFY17. Following five quarters of disappointment,
we expect India growth to bounce back to 12% yoy, also benefitting from base
PBT 16,712 26,295 21,541 28.9 (18.1)
effect. We expect RoW to grow at 17% yoy and API business at 52% yoy,
Reported PAT 10,724 20,357 16,217 51.2 (20.3) benefitting from full quarter consolidation of GSK opiates business
Extraordinaries We expect EBITDA margin to rise to ~31.5% for the quarter (-400 bps qoq),
primarily driven by 200 bps EBITDA margin contraction for Taro and declining
Adjusted PAT 10,724 20,357 16,217 51.2 (20.3) Gleevec sales in the quarter. We expect base business margin to remain stable in
EPS (Rs/share) 4.5 8.5 6.7 51.2 (20.3) the quarter as we expect a stable cost base post RBXY integration with synergy
benefits. We expect EPS to increase sharply (by 51% yoy) although this would still
EBITDA margin (%) 27.9 35.5 31.5 357 bps -397 bps result in a 20% qoq decline to Rs6.7
Torrent Pharmaceuticals
Net sales 16,910 15,450 15,470 (8.5) 0.1 We expect revenues to decline by 9% yoy due to lower revenues in the US (KIE
EBITDA 7,140 4,370 3,922 (45.1) (10.2) estimate: US$58 mn) continued erosion in aripiprazole, which we estimate will fall
to US$15 mn in the quarter before falling further to ~US$8-10 mn run rate from
EBIT 6,530 3,690 3,217 (50.7) (12.8)
3QFY17 onwards. We expect domestic growth to bounce back to 17% in the
PBT 7,320 3,460 3,027 (58.6) (12.5) quarter, helped by base effect. We expect LatAm to grow strongly by 27% and
Reported PAT 5,680 2,920 2,361 (58.4) (19.1) Europe to be stable
Extraordinaries TRP's margins and profits will contiue to drift downwards due to incremental price
erosion in aripiprazole as well as steady increase in R&D expenses. We expect
Adjusted PAT 5,680 2,920 2,361 (58.4) (19.1) EBITDA margin to sharply contract to ~25%, down from ~42% in 2QFY16, which
EPS (Rs/share) 33.6 17.3 14.0 (58.4) (19.1) had significant benefits from Abilify limited competition, and also reflecting
increase in R&D costs to 6.8% of sales in the quarter. We expect EPS to decline
EBITDA margin (%) 42.2 28.3 25.4 -1688 bps -294 bps by 58% yoy and 19% qoq due to decline in Abilify's contribution

Strategy India

Change (%)
Real Estate
DLF
Net sales 18,655 18,675 19,792 6.1 6.0
EBITDA 9,391 7,448 7,728 (17.7) 3.8 With increase in capex and construction expenditure, we expect debt to increase
EBIT 7,944 5,986 6,166 (22.4) 3.0 by over Rs5 bn in 2QFY17
PBT 2,203 89 673 (69.5) 657.8
Reported PAT 1,315 2,621 1,011 (23.1) (61.4)
Extraordinaries (154) 3,291 500 NM (84.8) Clarity on DCCDL stake sale remains the key, as pre-sales continue to be
Adjusted PAT 1,315 3,048 1,011 (23.1) (66.8) lackluster. Estimating key items in income statement is difficult on account of
EPS (Rs/share) 0.7 1.7 0.6 (23.1) (66.8) several changes
Godrej Properties
Net sales 14,585 3,038 3,215 (78.0) 5.8
EBITDA 1,652 398 603 (63.5) 51.8 Sales momentum is likely to remain slow, on seasonality and type of projects
EBIT 1,617 364 567 (64.9) 55.9 having unsold area
PBT 1,823 516 747 (59.0) 44.7
Reported PAT 1,062 435 620 (41.6) 42.5
Extraordinaries
2QFY17 will be key to evaluate OCF trends, as we do not expect any one-offs in
Adjusted PAT 1,062 433 620 (41.6) 43.0
the quarter
EPS (Rs/share) 5.3 2.0 2.9 (46.2) 43.0
Oberoi Realty
Net sales 1,892 3,200 3,093 63.5 (3.3)
EBITDA 1,090 1,666 1,497 37.3 (10.1) Higher sales at Three Sixty West could result in steady consolidated sales.
EBIT 968 1,543 1,374 41.9 (11.0) However, Mulund and Goregaon offtake remains slow
PBT 1,084 1,631 1,475 36.1 (9.6)
Reported PAT 724 1,079 1,064 46.8 (1.4)
Extraordinaries
Heavy rains in Mumbai during 2QFY17 may result in slower construction and
Adjusted PAT 724 1,089 1,064 46.8 (2.3)
collections
EPS (Rs/share) 2.1 3.2 3.1 46.8 (2.3)
Prestige Estates Projects
Net sales 12,043 9,449 9,874 (18.0) 4.5
EBITDA 2,710 1,706 1,816 (33.0) 6.5 Sales to be marginally better than 1QFY17 but lower than FY2015 run-rate; no
EBIT 2,333 1,370 1,471 (36.9) 7.4 new launches reported
PBT 1,719 845 902 (47.5) 6.8
Reported PAT 1,007 478 552 (45.1) 15.6
Extraordinaries
Adjusted PAT 1,007 478 552 (45.1) 15.6 Collections could maintain Rs9-10 bn/quarter run-rate
EPS (Rs/share) 0.3 0.1 0.1 (45.1) 15.6
Sobha
Net sales 4,519 5,701 4,410 (2.4) (22.6)
EBITDA 1,168 997 1,043 (10.7) 4.6 Marina, Kochi soft launched in 1QFY17; but we expect overall sales to remain
EBIT 1,032 843 886 (14.2) 5.1 weak
PBT 620 542 554 (10.6) 2.3
Reported PAT 401 359 380 (5.1) 6.0
Extraordinaries
Adjusted PAT 401 360 381 (4.9) 5.9 Receivables from land deal and efficiency in operations will result in positive OCF
EPS (Rs/share) 4.1 3.7 4.0 (3.1) 7.9
Technology
HCL Technologies
Net sales 100,970 113,360 115,482 14.4 1.9
EBITDA 20,904 25,209 24,527 17.3 (2.7)
EBIT 19,550 23,330 22,579 15.5 (3.2) We expect 2.1% c/c revenue growth and 50 bps impact of cross currency
PBT 21,967 25,861 25,055 14.1 (3.1)
Reported PAT 17,239 20,467 19,638 13.9 (4.0)
Extraordinaries
Adjusted PAT 17,239 20,467 19,638 13.9 (4.0) We expect EBIT margin to decline 100 bps qoq largely due to wage hikes for a
EPS (Rs/share) 12.2 14.5 13.9 13.9 (4.0) section of employees and cross-currency headwind
Hexaware Technologies
Net sales 8,184 8,696 8,941 9.3 2.8
EBITDA 1,460 1,352 1,459 (0.1) 7.9 We expect robust 3% growth in US Dollar terms and cross-currency headwind of
EBIT 1,339 1,213 1,309 (2.2) 7.9 20 bps. Growth will be driven by IMS and BPO
PBT 1,436 1,345 1,381 (3.9) 2.6
Reported PAT 1,115 998 1,023 (8.3) 2.5
Extraordinaries EBIT margin will recover by 70 bps led by (1) absence of visa costs (90-100 bps
Adjusted PAT 1,115 998 1,023 (8.3) 2.5 tailwind), (2) lower branding costs, (3) improvement in utilization and (4) partly
EPS (Rs/share) 3.7 3.3 3.4 (8.3) 2.5 offset by offshore wage hike (about 50 bps impact)

India Strategy

Change (%)
Infosys
Net sales 156,350 167,820 171,492 9.7 2.2
We expect c/c revenue growth of 3% and cross-currency headwind of 50 bps. We
EBITDA 43,510 44,470 46,459 6.8 4.5
expect Infosys to cut c/c revenue growth guidance to 9-10% from 10.5-12% and
EBIT 39,930 40,470 42,202 5.7 4.3
maintain 24-26% EBIT margin band for FY2017E
PBT 47,860 48,000 49,293 3.0 2.7
Reported PAT 33,980 34,360 34,983 3.0 1.8
Extraordinaries
We expect EBIT margin to improve 50 bps qoq on normalization of wage hikes
Adjusted PAT 33,980 34,360 34,983 3.0 1.8
and visa costs partly offset by cross-currency headwind
EPS (Rs/share) 14.9 15.0 15.3 3.0 1.8
Mindtree
Net sales 11,693 13,276 13,106 12.1 (1.3)
We expect organic c/c revenue decline of 1.1% and cross-currency headwind of 40
EBITDA 2,164 1,951 1,858 (14.1) (4.8)
bps. Revenues would be impacted by project cancellations, slower ramp-ups and
EBIT 1,847 1,483 1,370 (25.8) (7.7)
weakness in Bluefin acquisition
PBT 2,042 1,630 1,467 (28.2) (10.0)
Reported PAT 1,584 1,235 1,100 (30.6) (11.0)
Extraordinaries We expect EBIT margin to decline 70 bps led by wage hike (200 bps impact on
Adjusted PAT 1,584 1,235 1,100 (30.6) (11.0) margin) partly offset by the absence of visa costs (+100 bps tailwind) and
EPS (Rs/share) 9.4 7.3 6.5 (30.4) (11.0) operating efficiencies
Mphasis
Net sales 15,575 15,167 15,291 (1.8) 0.8
We expect robust growth in Direct International (excluding Digital Risk) while
EBITDA 2,345 2,437 2,462 5.0 1.0
Digital Risk and HP channel revenues would decline marginally. We expect 1.3%
EBIT 2,166 2,308 2,307 6.5 (0.1)
revenue growth in US Dollar terms and negligible cross-currency headwind
PBT 2,583 2,827 2,743 6.2 (3.0)
Reported PAT 1,847 2,043 1,975 6.9 (3.3)
Adjusted PAT 1,900 2,043 1,975 3.9 (3.3) We expect EBIT margin to be broadly flat qoq
EPS (Rs/share) 9.0 9.7 9.4 3.9 (3.3)
TCS
Net sales 271,655 293,050 296,143 9.0 1.1
We expect constant-currency (c/c) revenue growth of 2.4% and cross-currency
EBITDA 78,224 78,380 80,862 3.4 3.2
headwind of 90 bps (led by 8% depreciation of GBP offset by 5% appreciation of
EBIT 73,536 73,470 75,644 2.9 3.0
JPY versus USD)
PBT 80,286 83,100 82,339 2.6 (0.9)
Reported PAT 60,552 63,170 62,311 2.9 (1.4)
We expect EBIT margin to improve 45 bps qoq on normalization of wage hikes in
Extraordinaries
the previous quarter partly offset by cross currency headwind. We do not assume
Adjusted PAT 60,552 63,170 62,311 2.9 (1.4)
any forex gain in our model. Note that, forex gain in the June 2016 quarter was
EPS (Rs/share) 30.8 32.1 31.6 2.6 (1.4)
Rs3 bn
Tech Mahindra
Net sales 66,155 69,209 70,607 6.7 2.0 We expect c/c revenue growth of 3.2% and cross-currency headwind of 90 bps.
EBITDA 11,010 10,290 10,475 (4.9) 1.8 Growth will be aided by acquisitions (incremental US$10 mn from full quarter
EBIT 9,036 8,271 8,309 (8.0) 0.5 consolidation of Pininfarina acquisition + US$4 mn from The BIO agency
PBT 10,521 10,455 9,097 (13.5) (13.0) acquisition for the entire quarter + US$7 mn for one month of Target). Organic
Reported PAT 7,856 7,500 6,799 (13.5) (9.3) growth will be 0.3% qoq in US$ terms and about 1.2% in c/c terms
Extraordinaries We expect EBIT margin to decline 60 bps qoq due to (1) cross-currency headwind,
Adjusted PAT 7,856 7,500 6,799 (13.5) (9.3) (2) full quarter impact of Pininfarina acquisition, and (3) one-time restructuring
EPS (Rs/share) 8.2 7.8 7.1 (13.5) (9.3) costs. These headwinds will be partly offset by operational efficiencies and lower
EBITDA margin (%) 16.6 14.9 14.8 -181 bps -4 bps visa costs
Wipro
Net sales 125,668 136,976 134,284 6.9 (2.0)
We expect c/c revenue growth of 0.5% at mid-point of guidance of 0-1%.
EBITDA 27,819 27,512 25,772 (7.4) (6.3)
Revenues will decline 0.5% in US Dollar terms. We expect c/c revenue growth
EBIT 24,289 22,847 21,099 (13.1) (7.7)
guidance of 0-2% for Dec 2016 quarter
PBT 28,894 26,711 25,516 (11.7) (4.5)
Reported PAT 22,354 20,518 19,483 (12.8) (5.0) We expect IT services EBIT margin to decline 120 bps qoq due to full quarter
Extraordinaries impact of wage hike and cross-currency headwind. A sharp decline in IT services
Adjusted PAT 22,354 20,518 19,483 (12.8) (5.0) EBIT margin on yoy basis is partly due to amortization charge of intangibles
EPS (Rs/share) 9.1 8.3 7.9 (12.7) (5.0) pertaining to acquisitions under IT services segment (reported under reconciling
EBITDA margin (%) 22.1 20.1 19.2 -295 bps -90 bps items earlier)

Strategy India

Change (%)
Telecom
Bharti Airtel
Net sales 238,357 255,465 242,365 1.7 (5.1)
EBITDA 82,343 95,480 90,218 9.6 (5.5) At a consolidated level, we expect Bhartis revenues and EBITDA to decline 5.1%
EBIT 39,953 45,078 39,118 (2.1) (13.2) and 5.5% qoq respectively, while growing at 1.7% and 9.6% yoy respectively. For
PBT 20,505 16,458 18,218 (11.2) 10.7 Africa, we expect a sharp revenue and EBITDA decline of 14.5% and 22.5% qoq
Reported PAT 15,421 14,619 9,524 (38.2) (34.9) respectively
Extraordinaries 7,728 5,548
Adjusted PAT 7,693 9,071 9,524 23.8 5.0
We expect Bharti to report 3% qoq decline and 8.2% yoy growth in voice volumes
EPS (Rs/share) 1.9 2.3 2.4 23.8 5.0
to 305 bn minutes. Also expect a voice RPM decline of 2.1% qoq
Bharti Infratel
Net sales 30,410 32,106 32,533 7.0 1.3
EBITDA 13,094 13,947 14,283 9.1 2.4
We expect BHIN to report a revenue growth of 1.3% qoq and 7% yoy
EBIT 7,531 8,299 8,628 14.6 4.0
PBT 9,770 9,932 11,128 13.9 12.0
Reported PAT 5,916 7,563 7,567 27.9 0.1
We also expect EBITDA margin to expand by 50 bps qoq to 43.9%, with EBITDA
Adjusted PAT 5,916 6,286 7,567 27.9 20.4
growing at 2.4% qoq and 9.1% yoy
EPS (Rs/share) 3.1 3.3 4.0 27.8 20.4
IDEA
Net sales 86,891 94,866 91,615 5.4 (3.4)
We expect Idea to report 3.4% qoq decline and 5.4% yoy topline growth, a sharp
EBITDA 30,571 30,742 27,506 (10.0) (10.5)
slowdown led by seasonality and competitive pressures. On the EBITDA front, we
EBIT 15,190 11,550 8,206 (46.0) (29.0)
expect 10.5% qoq and 10% yoy consolidated EBITDA decline for the company
PBT 12,464 2,326 (1,194) (109.6) (151.3)
Reported PAT 8,093 2,204 (3) (100.0) (100.1)
Extraordinaries
We expect Idea to deliver 3.5% qoq decline and 1.5% yoy growth in voice
Adjusted PAT 8,093 2,204 (3) (100.0) (100.1)
volumes to 192 bn minutes, expect voice RPM to decline by 2.6% qoq
EPS (Rs/share) 2.3 0.6 (0.0) (100.0) (100.1)
Tata Communications
Net sales 51,301 50,317 50,811 (1.0) 1.0
EBITDA 7,720 8,627 8,536 10.6 (1.1) We estimate revenue to grow by 1% qoq and decline 1% yoy, while EBITDA is
EBIT 2,026 3,249 3,086 52.3 (5.0) expected to decline at 1.1% qoq but grow 10.6% yoy
PBT 1,061 2,136 1,961 84.8 (8.2)
Reported PAT 60 418 1,171 1,845.5 180.3
Adjusted PAT 60 1,338 1,171 1,845.5 (12.5) We expect EBITDA margin to expand to about 16.8%
EPS (Rs/share) 0.2 4.7 4.1 1,845.5 (12.5)
Utilities
Adani Power
Net sales 57,433 55,773 60,739 5.8 8.9
EBITDA 17,833 19,151 21,719 21.8 13.4 Improved financial performance due to healthy capacity utilization and accrual of
EBIT 11,956 13,166 15,694 31.3 19.2 compensatory tariff
PBT (3,691) (929) 1,099 NM NM
Reported PAT (3,691) (312) 1,099 NM NM
Extraordinaries
Our estimates continue to factor in accrual of compensatory tariff despite
Adjusted PAT (3,691) (312) 1,099 NM NM
uncertainty of the same
EPS (Rs/share) (1.1) (0.1) 0.3 NM NM
CESC
Net sales 17,570 18,880 17,988 2.4 (4.7)
EBITDA 4,230 3,870 4,063 (4.0) 5.0 5% yoy growth in unit sales due to higher generation at captive capacities as well
EBIT 3,330 2,910 3,076 (7.6) 5.7 as Haldia
PBT 2,570 2,260 2,395 (6.8) 6.0
Reported PAT 1,950 1,740 1,796 (7.9) 3.2
Extraordinaries
Adjusted PAT 1,950 1,740 1,796 (7.9) 3.2 2QFY17 estimates do not factor in tariff increase in the absence of tariff order
EPS (Rs/share) 15.6 13.9 14.4 (7.9) 3.2
JSW Energy
Net sales 24,910 24,112 26,491 6.3 9.9
EBITDA 9,579 10,785 10,655 11.2 (1.2) Peak generation from hydro assets off-set by sharp drop in generation at
EBIT 7,338 8,387 8,116 10.6 (3.2) Vijaynagar
PBT 5,129 4,899 4,550 (11.3) (7.1)
Reported PAT 4,920 3,665 3,185 (35.3) (13.1)
Extraordinaries 1,328 14
2QFY17 results are not comparable with 2QFY16 results on account of inclusion of
Adjusted PAT 3,592 3,651 3,185 (11.3) (12.8)
hydro assets acquired from Jaiprakash
EPS (Rs/share) 2.2 2.2 1.9 (11.3) (12.8)

India Strategy

Change (%)
NHPC
Net sales 23,342 21,660 24,968 7.0 15.3
EBITDA 15,844 13,258 16,582 4.7 25.1
Strong generation growth (+7% yoy) will result in modest growth in net profits
EBIT 12,254 9,874 13,168 7.5 33.4
PBT 13,002 9,063 13,996 7.6 54.4
Reported PAT 10,466 7,199 10,609 1.4 47.4
Extraordinaries 238
Seasonally strong quarter, which has contributed the bulk of full-year profits
Adjusted PAT 10,229 7,199 10,609 3.7 47.4
historically
EPS (Rs/share) 0.9 0.7 1.0 3.7 47.4
NTPC
Net sales 177,229 189,398 179,689 1.4 (5.1)
EBITDA 38,550 50,874 50,094 29.9 (1.5)
Sharp yoy decline in net profits reflects large tax refunds (Rs12 bn) in 2QFY16
EBIT 25,321 36,923 35,881 41.7 (2.8)
PBT 21,686 30,761 29,666 36.8 (3.6)
Reported PAT 28,983 23,695 23,140 (20.2) (2.3)
Flat generation volumes as higher contribution from hydro capacities off-set by
Adjusted PAT 26,028 23,695 23,140 (11.1) (2.3)
lower capacity utilization for coal-based plants
EPS (Rs/share) 3.2 2.9 2.8 (11.1) (2.3)
Power Grid
Net sales 49,046 60,691 60,745 23.9 0.1
EBITDA 43,046 53,688 53,801 25.0 0.2 Strong revenue growth of 24% yoy aided by aggressive capitalization of Rs296 bn
EBIT 28,565 36,116 36,195 26.7 0.2 in trailing twelve months
PBT 18,298 22,836 22,384 22.3 (2.0)
Reported PAT 14,480 18,018 17,683 22.1 (1.9)
Extraordinaries 6
Adjusted PAT 14,475 18,018 17,683 22.2 (1.9) We factor in asset capitalization of Rs36 bn in 2QFY17
EPS (Rs/share) 2.8 3.4 3.4 22.2 (1.9)
Reliance Power
Net sales 27,416 26,787 23,005 (16.1) (14.1)
EBITDA 11,967 11,420 9,780 (18.3) (14.4)
16% yoy drop in generation likely to weigh on earnings during the quarter
EBIT 9,321 9,953 8,266 (11.3) (16.9)
PBT 4,349 4,190 2,736 (37.1) (34.7)
Reported PAT 3,456 3,405 2,189 (36.7) (35.7)
Extraordinaries Contribution from Rosa and Butibori units that operate on cost-plus basis may not
Adjusted PAT 3,456 3,405 2,189 (36.7) (35.7) be enough to offset the drop in generation at Sasan (18% yoy), which will lead to
EPS (Rs/share) 1.2 1.2 0.8 (36.7) (35.7) a sharp qoq and yoy decline in revenues and earnings
Tata Power
Net sales 19,455 13,814 15,605 (19.8) 13.0
EBITDA 5,069 1,538 2,059 (59.4) 33.8
Stable performance of distribution business
EBIT 3,413 (12) 533 (84.4) NM
PBT 4,169 2,325 3,821 (8.3) 64.3
Reported PAT 2,785 1,469 2,598 (6.7) 76.8
Extraordinaries (189) (180)
Adjusted PAT 2,974 1,649 2,598 (12.6) 57.5 Lower fuel costs due to weak prices of imported coal
EPS (Rs/share) 1.4 0.8 1.2 (12.6) 57.5

Strategy
Exhibit 6: Kotak Institutional Equities: Valuation summary of KIE universe stocks
Target O/S
Price (Rs) price Upside Mkt cap. shares EPS (Rs) EPS growth (%) PER (X) EV/EBITDA (X) Price/BV (X) Dividend yield (%) RoE (%) ADVT-3mo
Company Rating 05-Oct-16 (Rs) (%) (Rs mn) (US$ mn) (mn) 2017E 2018E 2019E 2017E 2018E 2019E 2017E 2018E 2019E 2017E 2018E 2019E 2017E 2018E 2019E 2017E 2018E 2019E 2017E 2018E 2019E (US$ mn)
Automobiles
Amara Raja Batteries SELL 1,055 800 (24.2) 180,199 2,708 171 34.0 38.6 44.3 18.8 13.3 14.9 31.0 27.3 23.8 17.9 16.0 14.3 7.1 5.9 5.0 0.6 0.7 0.8 25.0 23.6 22.7 6.2
Apollo Tyres BUY 229 230 0.2 116,796 1,755 509 20.7 22.6 28.5 2.8 9.0 26.2 11.1 10.2 8.0 6.9 6.2 4.9 1.7 1.5 1.3 0.8 0.9 1.2 16.1 15.5 16.9 10.7
Ashok Leyland SELL 82 75 (8.1) 232,366 3,492 2,846 4.5 5.2 5.7 29.6 14.1 10.1 18.0 15.8 14.4 9.9 9.0 8.4 3.7 3.2 2.8 1.7 1.9 2.1 21.7 21.6 20.8 19.0
Bajaj Auto REDUCE 2,858 2,850 (0.3) 826,996 12,429 289 141.2 160.1 189.2 11.9 13.4 18.2 20.2 17.9 15.1 14.4 12.4 10.1 5.7 4.9 4.2 2.0 2.2 2.6 30.5 29.5 29.8 12.5
Balkrishna Industries ADD 1,145 950 (17.1) 110,703 1,664 97 63.3 72.5 84.2 6.2 14.6 16.2 18.1 15.8 13.6 11.0 9.4 7.8 3.3 2.8 2.4 0.5 0.6 0.6 20.0 19.2 18.9 1.3
Bharat Forge SELL 925 835 (9.7) 215,346 3,236 237 25.3 34.6 44.1 (7.6) 37.0 27.3 36.6 26.7 21.0 18.0 14.1 11.4 5.5 4.8 4.1 0.6 0.9 1.1 15.8 19.1 21.0 14.8
Eicher Motors SELL 26,281 14,500 (44.8) 713,833 10,728 27 646.6 736.0 835.2 37.4 13.8 13.5 40.6 35.7 31.5 32.2 28.1 24.2 19.9 13.7 10.2 0.1 0.1 0.1 49.8 45.5 37.1 17.4
Exide Industries SELL 194 155 (20.3) 165,240 2,483 850 7.8 8.5 9.2 6.5 8.5 8.6 24.9 23.0 21.2 14.9 13.8 12.3 3.4 3.1 2.9 1.3 1.5 1.5 14.3 14.2 14.2 11.1
Hero Motocorp SELL 3,491 2,950 (15.5) 697,159 10,477 200 183.8 194.6 205.3 17.2 5.8 5.5 19.0 17.9 17.0 12.6 11.8 11.1 7.4 6.4 5.5 2.6 2.8 2.9 42.3 38.2 34.8 21.1
Mahindra CIE Automotive ADD 200 205 2.7 64,617 971 323 7.8 9.9 12.5 77.2 27.5 26.3 25.7 20.1 16.0 11.6 8.3 7.0 2.9 2.0 1.8 11.8 12.5 11.9 0.9
Mahindra & Mahindra REDUCE 1,399 1,370 (2.1) 869,032 13,060 569 65.2 74.2 83.6 12.5 13.8 12.8 21.5 18.9 16.7 14.4 12.7 11.3 3.2 2.8 2.5 1.2 1.3 1.5 15.6 15.9 16.0 23.9
Maruti Suzuki BUY 5,689 5,800 1.9 1,718,594 25,828 302 232.4 292.5 354.8 53.6 25.9 21.3 24.5 19.4 16.0 14.0 11.0 8.8 5.4 4.5 3.8 1.0 1.3 1.6 23.8 25.2 25.6 56.2
Minda Corp. REDUCE 106 110 3.5 22,239 334 209 5.5 6.9 8.9 19.6 24.9 28.1 19.2 15.3 12.0 9.7 8.0 6.5 3.3 2.8 2.3 0.5 0.6 0.7 18.8 19.7 21.0 0.8
Motherson Sumi Systems SELL 333 260 (22.0) 467,821 7,031 1,323 11.8 14.6 17.1 21.8 23.8 17.7 28.3 22.9 19.4 11.9 9.7 8.3 8.4 6.8 5.5 1.1 1.3 1.5 32.8 32.8 31.3 16.4
Suprajit Engineering REDUCE 216 190 (12.1) 28,382 427 131 7.6 9.1 10.8 39.5 18.9 19.0 28.3 23.8 20.0 15.7 13.6 11.7 5.4 4.6 3.9 0.6 0.8 0.9 20.6 20.8 21.1 0.3
Tata Motors BUY 560 580 3.6 1,798,570 27,030 3,396 47.6 57.9 66.7 22.9 21.7 15.3 11.8 9.7 8.4 4.7 4.0 3.4 2.0 1.6 1.4 18.2 18.4 17.7 63.6
TVS Motor SELL 379 235 (38.1) 180,248 2,709 475 11.6 14.3 16.8 50.7 24.1 17.4 32.8 26.4 22.5 18.7 15.6 13.4 9.2 7.4 6.0 0.8 1.0 1.1 31.0 31.0 29.5 11.1
WABCO India BUY 6,125 7,200 17.6 116,177 1,746 19 158.1 182.2 209.0 46.5 15.2 14.8 38.8 33.6 29.3 25.0 21.3 18.1 8.8 7.1 5.8 0.2 0.2 0.3 25.2 23.3 21.8 0.8
Automobiles Neutral 8,524,319 128,108 23.8 18.8 16.0 19.3 16.3 14.0 9.7 8.2 6.9 3.9 3.2 2.7 0.9 1.1 1.2 19.9 19.9 19.5 288.0
Banks
Axis Bank REDUCE 536 530 (1.1) 1,278,586 19,215 2,383 32.0 38.0 47.8 (7.2) 18.4 26.0 16.7 14.1 11.2 2.3 2.1 1.8 0.9 1.1 1.4 13.6 14.3 15.9 98.8
Bank of Baroda REDUCE 169 150 (11.5) 390,440 5,868 2,310 6.7 18.4 25.0 128.7 174.0 36.2 25.2 9.2 6.8 1.8 1.7 1.5 0.8 2.2 3.0 4.2 10.9 13.5 24.1
Bank of India ADD 120 120 0.3 126,194 1,897 817 (8.4) 32.3 42.7 88.8 486.9 32.2 (14.3) 3.7 2.8 1.0 0.7 0.5 (1.4) 5.4 7.1 (2.6) 9.9 12.0 11.7
Canara Bank REDUCE 335 260 (22.4) 181,929 2,734 543 17.5 56.2 55.8 133.8 221.4 (0.6) 19.2 6.0 6.0 1.6 1.4 1.0 3.0 9.4 8.9 21.4
City Union Bank ADD 138 135 (1.9) 82,311 1,237 598 8.7 10.2 11.5 17.5 16.7 12.4 15.8 13.5 12.0 2.5 2.2 1.9 1.0 1.2 1.3 16.0 16.4 16.1 0.9
DCB Bank ADD 126 130 2.9 35,976 541 284 6.3 7.9 10.9 (8.0) 26.1 37.7 20.1 15.9 11.6 2.0 1.8 1.6 9.8 11.1 13.5 2.7
Equitas Holdings REDUCE 186 180 (3.4) 62,497 939 270 6.0 7.3 7.9 (3.3) 22.7 7.7 31.1 25.4 23.6 2.9 2.6 2.4 11.1 10.3 10.0 5.7
Federal Bank BUY 74 80 7.7 127,661 1,919 1,719 5.1 6.7 7.5 85.5 31.3 10.5 14.5 11.0 10.0 1.6 1.5 1.3 1.7 2.3 2.5 10.5 12.7 12.8 9.6
HDFC Bank ADD 1,286 1,350 5.0 3,256,073 48,934 2,528 58.9 69.7 83.1 21.1 18.3 19.2 21.8 18.5 15.5 3.9 3.4 2.9 0.9 1.1 1.3 19.0 19.4 19.8 27.5
ICICI Bank BUY 255 340 33.1 1,485,933 22,331 5,849 17.5 24.7 28.6 5.4 41.1 15.7 14.6 10.3 8.9 1.8 1.6 1.4 2.1 2.9 3.4 11.0 14.3 15.0 63.4
IDFC Bank ADD 76 75 (1.7) 259,027 3,893 - 2.6 4.0 5.6 113.4 54.9 40.7 29.8 19.2 13.7 1.8 1.7 1.5 0.7 1.0 1.5 6.2 9.1 11.8 9.4
IndusInd Bank ADD 1,216 1,250 2.8 724,466 10,888 595 48.9 56.7 66.4 27.3 15.9 17.2 24.9 21.5 18.3 3.7 3.3 2.8 0.5 0.6 0.7 15.9 15.9 16.3 22.2
J&K Bank BUY 90 85 (5.6) 43,654 656 485 4.9 13.0 16.2 (42.9) 166.3 24.2 18.4 6.9 5.6 1.0 0.7 0.6 1.1 3.0 3.7 3.6 9.2 10.6 2.4
Karur Vysya Bank BUY 475 600 26.2 57,440 863 122 52.2 56.3 79.2 12.0 8.0 40.5 9.1 8.4 6.0 1.2 1.1 1.0 2.7 3.0 4.2 13.3 13.0 16.5 1.5
Oriental Bank of Commerce ADD 132 120 (9.2) 45,729 687 321 12.8 27.1 45.5 163.6 111.9 67.6 10.3 4.9 2.9 1.2 1.0 0.7 1.9 4.1 6.9 2.7 5.6 8.9 10.1
Punjab National Bank REDUCE 144 125 (13.4) 307,066 4,615 1,964 3.8 23.2 26.0 118.8 509.6 11.8 37.8 6.2 5.6 2.1 1.2 0.9 0.5 3.2 3.6 2.1 11.9 12.1 36.8
Ujjivan Financial Services REDUCE 467 400 (14.4) 55,231 830 101 18.9 15.0 14.9 7.7 (20.4) (1.1) 24.8 31.1 31.4 3.2 2.9 2.7 0.3 0.3 0.3 15.1 9.7 8.8 14.4
State Bank of India BUY 261 280 7.3 2,024,920 30,432 7,763 16.7 31.7 41.4 30.6 89.6 30.6 15.6 8.2 6.3 1.4 1.2 1.0 1.1 1.2 1.2 7.9 12.5 14.4 74.2
Union Bank ADD 152 145 (4.8) 104,732 1,574 687 22.0 37.6 46.3 11.8 71.2 23.1 6.9 4.0 3.3 0.9 0.7 0.6 1.4 2.4 3.0 7.2 11.2 12.4 13.0
YES Bank REDUCE 1,279 1,200 (6.2) 538,520 8,093 421 64.8 77.2 93.3 7.3 19.1 20.9 19.7 16.6 13.7 3.5 3.0 2.5 0.8 1.0 1.2 18.3 18.8 19.4 73.3
Banks Attractive 11,188,385 168,145 91.7 60.0 23.2 18.8 11.7 9.5 1.6 1.5 1.3 1.0 1.4 1.7 8.6 12.5 13.7 523.3
NBFCs
Bajaj Finserv REDUCE 3,155 2,440 (22.7) 502,004 7,544 159 144.4 169.4 199.5 18.0 17.3 17.8 21.8 18.6 15.8 3.5 3.0 2.6 0.4 0.4 0.4 16.5 17.3 17.6 9.6
Cholamandalam REDUCE 1,228 1,010 (17.8) 191,796 2,882 156 47.5 58.2 71.6 31.3 22.5 23.0 25.8 21.1 17.2 4.7 4.0 3.3 0.5 0.6 0.7 18.7 19.4 20.2 6.7
Dewan Housing Finance BUY 297 250 (15.7) 86,518 1,300 291 32.1 37.4 43.3 16.4 16.3 15.9 9.2 7.9 6.8 1.6 1.3 1.2 1.2 1.4 1.6 17.0 17.6 17.1 10.3
HDFC ADD 1,423 1,430 0.5 2,249,951 33,814 1,580 52.3 58.0 66.7 10.7 10.8 15.0 27.2 24.5 21.3 5.5 4.9 4.0 1.3 1.4 1.6 21.9 21.2 20.8 54.1
IDFC BUY 70 80 14.0 111,955 1,683 1,594 4.5 6.2 8.4 176.1 39.2 35.7 15.7 11.3 8.3 1.0 0.9 0.8 0.4 0.5 0.6 10.1 13.6 17.0 7.4
IIFL Holdings ADD 272 310 13.9 86,223 1,296 317 19.2 23.3 27.4 18.9 21.3 17.8 14.2 11.7 9.9 2.0 1.8 1.5 0.9 1.1 1.3 20.2 19.1 19.7 1.3
L&T Finance Holdings ADD 97 90 (6.8) 169,291 2,544 1,754 5.2 6.4 7.9 6.0 24.6 23.2 18.7 15.0 12.2 2.1 1.9 1.7 0.5 0.8 0.9 11.9 13.0 14.3 10.2
LIC Housing Finance ADD 592 590 (0.3) 298,685 4,489 505 42.8 49.8 57.7 18.0 16.3 15.8 13.8 11.9 10.3 2.5 2.1 1.8 1.1 1.3 1.5 19.7 21.4 20.8 19.7
Magma Fincorp ADD 119 125 5.1 28,161 423 235 10.0 12.1 15.1 10.6 21.5 24.9 11.9 9.8 7.9 1.2 1.1 1.0 1.3 1.5 1.9 10.7 11.4 13.0 0.8
Mahindra & Mahindra Financial REDUCE 379 320 (15.6) 215,533 3,239 565 13.3 16.9 20.7 11.3 27.1 22.8 28.6 22.5 18.3 3.4 3.1 2.8 0.9 1.2 1.4 11.8 13.7 15.2 11.4
Max Financial Services NR 562 150,134 2,256 267 7.0 7.1 7.2 62.8 1.5 1.5 80.1 78.8 77.7 0.5 0.5 0.5 10.9 10.5 10.0 7.8
Muthoot Finance ADD 346 370 7.0 137,935 2,073 399 28.1 30.4 35.2 38.6 8.2 15.5 12.3 11.4 9.8 2.2 1.9 1.7 2.4 2.6 3.1 18.8 18.0 18.5 7.3
PFC REDUCE 126 50 (60.5) 333,838 5,017 2,640 16.5 20.7 25.6 (28.7) 25.5 23.5 7.7 6.1 4.9 1.3 1.1 0.9 2.6 3.3 4.1 10.9 12.5 13.9 10.0
Rural Electrification Corp. ADD 134 130 (2.9) 264,442 3,974 1,975 23.9 17.2 19.4 (16.1) (27.9) 12.9 5.6 7.8 6.9 1.0 1.3 1.2 3.8 2.8 3.1 16.0 10.8 11.2 18.1
Shriram City Union Finance REDUCE 2,220 1,900 (14.4) 146,358 2,200 66 94.1 127.1 160.7 17.4 35.0 26.5 23.6 17.5 13.8 3.0 2.7 2.4 0.5 0.6 0.8 12.8 15.3 16.8 2.3
Shriram Transport ADD 1,229 1,385 12.7 278,930 4,192 223 75.1 93.8 110.7 42.2 25.0 18.0 16.4 13.1 11.1 2.6 2.3 2.0 0.9 1.1 1.3 15.4 16.8 17.2 11.9
NBFCs Neutral 5,366,680 80,653 8.3 11.9 19.4 16.9 15.1 12.6 2.6 2.3 2.0 1.2 1.3 1.6 15.5 15.5 16.0 523.3
Source: Company, Bloomberg, Kotak Institutional Equities estimates
India
31
India
Kotak Institutional Equities: Valuation summary of KIE universe stocks
32
Target O/S
Cement
ACC SELL 1,633 1,400 (14.3) 306,694 4,609 188 51.1 74.4 92.1 29.0 45.6 23.7 32.0 22.0 17.7 17.3 12.1 9.8 3.4 3.1 2.7 1.0 1.0 1.0 11.0 14.7 16.2 7.8
Ambuja Cements SELL 256 230 (10.2) 508,623 7,644 1,552 8.2 10.9 14.4 47.7 32.3 32.1 31.2 23.6 17.8 13.2 9.5 7.2 2.2 2.1 2.0 1.3 1.3 1.3 9.6 9.2 11.4 9.7
Dalmia Bharat ADD 1,928 1,600 (17.0) 171,241 2,573 89 57.1 91.9 112.9 165.8 60.9 22.9 33.8 21.0 17.1 11.1 8.8 7.6 3.9 3.3 2.8 0.1 0.1 0.1 12.4 17.2 17.8 2.6
Grasim Industries ADD 4,934 4,700 (4.7) 460,580 6,922 93 358.7 430.9 485.7 30.6 20.2 12.7 13.8 11.4 10.2 6.2 4.8 3.7 1.6 1.4 1.2 0.5 0.5 0.5 12.2 13.0 13.0 14.4
India Cements REDUCE 158 92 (41.6) 48,427 728 307 6.6 9.0 11.1 43.7 36.3 23.5 NM 17.5 14.2 8.9 7.7 6.9 1.3 1.2 1.1 1.3 1.3 1.3 5.5 7.1 8.3 11.4
J K Cement BUY 889 850 (4.4) 62,165 934 70 40.0 74.9 97.8 368.4 87.2 30.6 22.2 11.9 9.1 10.4 7.4 6.0 3.3 2.6 2.1 0.4 0.4 0.4 16.0 24.7 25.4 0.5
JK Lakshmi Cement ADD 510 480 (5.8) 59,959 901 118 20.2 33.4 48.0 921.6 65.3 44.0 25.3 15.3 10.6 12.2 8.1 6.2 3.8 3.1 2.4 0.4 0.4 0.4 16.3 22.6 25.8 0.9
Orient Cement BUY 224 175 (21.8) 45,819 689 205 6.8 16.6 21.0 124.3 143.9 26.1 32.8 13.5 10.7 14.5 8.5 7.0 4.1 3.2 2.6 0.8 0.8 0.8 13.1 27.0 26.8 0.7
Shree Cement SELL 17,768 12,000 (32.5) 618,974 9,302 35 625.3 719.9 825.4 442.0 15.1 14.7 28.4 24.7 21.5 18.9 14.9 12.6 7.5 5.8 4.6 0.1 0.1 0.1 30.2 26.5 23.9 3.7
UltraTech Cement SELL 4,033 2,825 (30.0) 1,106,849 16,634 274 124.0 159.1 181.7 56.4 28.4 14.2 32.5 25.3 22.2 17.8 14.3 12.4 4.6 4.0 3.4 0.2 0.2 0.2 15.3 16.9 16.5 15.3
Cement Cautious 3,389,331 50,937 78.4 30.4 19.0 26.3 20.2 16.9 12.7 9.8 8.1 3.2 2.8 2.5 0.5 0.5 0.5 12.2 14.0 14.5 67.1
Consumer products
Asian Paints REDUCE 1,209 950 (21.4) 1,159,430 17,425 959 21.5 25.4 29.3 14.9 18.1 15.2 56.2 47.6 41.3 35.6 30.0 25.8 17.5 14.9 12.7 0.7 0.9 1.1 33.7 33.8 33.2 16.1
Bajaj Corp. BUY 397 465 17.1 58,558 880 148 17.5 19.5 21.6 10.4 11.5 10.5 22.7 20.3 18.4 18.4 15.8 13.5 11.7 11.2 10.7 3.1 3.8 4.2 52.5 56.1 59.3 0.8
Britannia Industries ADD 3,461 3,650 5.5 415,176 6,239 120 79.5 99.3 118.6 16.9 24.9 19.4 43.5 34.8 29.2 29.0 23.1 19.3 17.6 13.3 10.3 0.7 0.9 1.0 46.2 43.4 39.7 10.1
Coffee Day Enterprises ADD 232 290 24.9 47,823 719 206 2.6 6.2 7.3 809.8 138.0 18.2 89.3 37.5 31.7 12.5 10.8 9.9 2.2 2.1 1.9 2.5 5.6 6.3 0.4
Colgate-Palmolive (India) ADD 979 1,060 8.2 266,342 4,003 272 23.6 27.9 33.5 11.2 18.4 20.0 41.5 35.1 29.2 24.8 21.0 17.6 20.7 16.3 13.0 1.2 1.3 1.5 55.7 52.0 49.4 4.8
Dabur India REDUCE 283 305 7.8 497,925 7,483 1,759 7.8 8.9 10.2 10.9 14.6 14.4 36.4 31.8 27.8 29.7 25.3 21.8 10.1 8.6 7.3 1.0 1.1 1.3 30.1 29.2 28.4 6.9
GlaxoSmithKline Consumer ADD 6,223 6,650 6.9 261,693 3,933 42 171.5 195.3 220.3 10.9 13.9 12.8 36.3 31.9 28.2 24.4 21.1 18.2 9.5 8.4 7.5 1.3 1.5 1.8 27.7 28.0 28.2 0.9
Godrej Consumer Products SELL 1,625 1,375 (15.4) 553,299 8,315 341 39.9 45.9 52.1 13.4 15.0 13.6 40.7 35.4 31.2 29.4 25.0 21.6 9.4 7.7 6.4 0.4 0.4 0.4 24.7 23.9 22.5 5.6
Hindustan Unilever REDUCE 871 885 1.6 1,884,950 28,328 2,164 21.0 23.3 25.7 8.8 11.1 10.4 41.5 37.4 33.9 28.6 25.2 22.3 30.6 31.3 32.7 2.1 2.3 2.6 73.0 82.7 94.3 18.2
ITC ADD 240 270 12.4 2,899,409 43,574 12,104 8.6 9.7 10.9 11.0 13.1 12.9 28.0 24.8 22.0 18.2 16.0 14.0 8.2 7.6 7.2 2.2 2.6 3.2 27.3 29.9 32.8 36.1
Jubilant Foodworks REDUCE 993 1,000 0.7 65,405 983 66 20.4 29.3 39.7 28.0 43.8 35.6 48.8 33.9 25.0 18.8 14.0 10.7 7.9 6.7 5.6 0.4 0.6 0.9 17.2 21.4 24.5 12.3
Jyothy Laboratories NR 363 65,949 991 181 9.9 11.1 11.5 36.0 11.9 3.9 36.8 32.9 31.6 25.8 22.1 19.2 8.2 7.6 7.1 1.4 1.7 1.9 27.1 24.0 23.2 1.0
Manpasand Beverages REDUCE 761 630 (17.2) 38,089 572 50 15.3 20.4 28.7 51.8 33.2 40.8 49.6 37.3 26.5 23.6 18.3 13.5 5.7 5.0 4.3 0.2 0.3 0.4 12.1 14.3 17.5 1.8
Marico REDUCE 286 270 (5.7) 369,505 5,553 1,290 6.8 7.9 8.8 19.9 15.2 12.5 42.0 36.5 32.4 28.7 24.9 21.9 14.7 12.4 10.5 1.0 1.2 1.4 38.2 36.9 35.2 5.5
Nestle India SELL 6,776 5,650 (16.6) 653,270 9,818 96 121.3 149.8 173.3 30.9 23.5 15.6 55.8 45.2 39.1 31.1 26.0 23.0 20.4 17.8 15.9 1.0 1.3 1.5 38.9 42.1 42.9 3.7
Page Industries SELL 15,977 11,500 (28.0) 178,206 2,678 11 251.5 309.7 382.9 20.6 23.2 23.6 63.5 51.6 41.7 39.9 32.7 26.5 27.1 20.7 15.5 0.6 0.7 0.7 48.2 45.4 42.5 2.4
PC Jeweller ADD 492 450 (8.5) 88,063 1,323 179 26.2 30.7 37.5 22.0 17.3 22.3 18.8 16.0 13.1 9.8 7.9 6.6 3.0 2.5 2.2 0.8 0.9 1.1 17.7 17.6 17.6 2.1
Pidilite Industries REDUCE 734 690 (6.0) 376,150 5,653 513 17.6 20.1 23.1 19.4 14.1 15.2 41.7 36.6 31.7 27.1 23.6 20.4 11.1 9.3 7.8 0.7 0.8 1.0 29.2 27.6 26.7 6.7
S H Kelkar and Company REDUCE 304 260 (14.6) 44,015 661 145 8.8 10.1 11.5 51.2 15.6 13.4 34.7 30.1 26.5 22.2 19.2 16.9 5.2 4.6 4.2 0.7 0.9 1.1 15.7 16.3 16.5 0.7
Speciality Restaurants SELL 87 75 (13.6) 4,078 61 47 (0.3) 0.8 1.9 (642.3) 373.3 136.1 (289.2) 105.8 44.8 20.1 11.8 9.0 1.3 1.3 1.3 (0.5) 1.2 2.9 0.1
Tata Global Beverages ADD 153 150 (2.2) 96,752 1,454 631 6.1 7.0 8.2 22.3 14.6 17.0 25.2 22.0 18.8 12.8 11.3 9.8 1.6 1.6 1.5 1.5 1.6 2.0 6.6 7.3 8.1 5.1
Titan Company REDUCE 406 320 (21.2) 360,352 5,416 888 9.9 12.2 13.9 26.5 23.9 13.7 41.1 33.2 29.2 27.5 21.9 18.7 8.9 7.6 6.6 0.8 0.9 1.1 23.3 24.9 24.2 6.7
United Breweries SELL 952 730 (23.3) 251,661 3,782 264 13.5 17.3 21.4 20.4 28.3 23.9 70.8 55.1 44.5 31.6 26.7 22.8 10.5 9.1 7.8 0.2 0.3 0.3 15.8 17.6 18.8 5.1
United Spirits ADD 2,558 2,800 9.4 371,792 5,587 145 34.4 53.8 73.1 180.9 56.4 35.8 NM 47.5 35.0 32.5 24.4 19.7 12.2 8.1 6.6 20.7 20.6 20.8 15.3
Consumer products Cautious 11,007,892 165,433 15.3 16.3 14.6 38.3 33.0 28.8 24.6 21.1 18.2 11.0 9.7 8.7 1.4 1.6 1.9 28.7 29.5 30.2 168.3
Energy
BPCL REDUCE 650 580 (10.8) 939,865 14,125 1,446 50.9 54.5 57.8 (1.0) 7.0 6.1 12.8 11.9 11.2 7.9 6.9 6.4 2.9 2.5 2.2 2.3 2.5 2.7 24.9 22.9 21.1 30.8
Cairn India ADD 222 415,657 6,247 1,875 8.9 11.3 14.4 (22.1) 26.9 27.5 24.9 19.6 15.4 9.0 7.3 5.7 0.8 0.8 0.8 1.1 2.0 3.2 3.4 4.2 5.2 13.6
Castrol India ADD 486 450 (7.5) 240,505 3,614 495 14.3 15.4 16.5 19.1 7.7 6.8 33.9 31.5 29.5 22.4 20.8 19.4 38.1 35.2 31.8 2.3 2.5 2.6 117.4 116.2 113.3 19.0
GAIL (India) ADD 400 430 7.4 507,898 7,633 1,268 27.1 32.7 37.0 51.3 20.4 13.3 14.8 12.3 10.8 9.1 7.7 6.8 1.5 1.4 1.3 1.9 2.5 3.0 10.8 11.9 12.5 12.5
GSPL ADD 158 150 (5.3) 89,267 1,342 563 9.0 11.1 12.2 14.4 23.5 9.3 17.6 14.2 13.0 8.8 7.2 6.5 2.1 1.9 1.8 1.6 2.1 3.1 12.3 13.9 14.0 0.9
HPCL REDUCE 435 400 (8.1) 442,010 6,643 1,017 41.4 41.6 42.0 8.9 0.6 0.8 10.5 10.5 10.4 7.4 7.5 7.6 2.1 1.9 1.7 2.9 2.9 2.9 21.4 18.9 17.0 33.3
Indraprastha Gas ADD 828 760 (8.2) 115,955 1,743 140 43.4 46.8 50.0 30.9 7.9 6.7 19.1 17.7 16.6 11.0 10.1 9.3 4.2 3.7 3.4 1.4 1.8 2.1 23.5 22.3 21.4 9.9
IOCL ADD 618 595 (3.7) 1,499,746 22,539 2,428 57.2 61.2 63.1 46.3 6.9 3.0 10.8 10.1 9.8 6.2 5.8 5.6 1.8 1.6 1.5 2.8 3.0 3.1 17.7 17.0 15.8 25.6
Mahanagar Gas ADD 698 650 (6.9) 68,991 1,037 99 38.0 40.2 42.2 21.7 5.7 5.0 18.4 17.4 16.5 10.8 10.0 9.4 4.0 3.7 3.4 2.5 2.7 3.0 23.2 22.2 21.3 -
ONGC SELL 267 230 (13.7) 2,281,321 34,285 8,556 19.8 22.6 26.8 (2.2) 14.0 18.6 13.5 11.8 10.0 5.3 4.8 4.1 1.2 1.1 1.0 2.6 3.0 3.6 8.8 9.6 10.7 21.7
Oil India SELL 411 370 (9.9) 246,826 3,709 601 35.9 37.9 43.0 (7.5) 5.6 13.7 11.4 10.8 9.5 6.6 6.3 5.6 1.0 1.0 0.9 3.0 3.7 4.1 9.4 9.4 10.2 3.3
Petronet LNG ADD 370 370 (0.1) 277,725 4,174 750 19.0 24.0 26.8 69.4 26.1 11.7 19.5 15.4 13.8 12.2 9.6 8.1 3.7 3.2 2.8 1.1 1.8 2.4 20.6 22.3 21.7 7.6
Reliance Industries ADD 1,089 1,100 1.0 3,207,682 48,207 3,240 83.0 94.4 99.3 (2.0) 13.8 5.1 13.1 11.5 11.0 11.2 8.5 7.8 1.3 1.2 1.1 1.1 1.3 1.4 10.7 11.1 10.7 61.9
Energy Attractive 10,346,320 155,490 7.0 11.9 8.7 12.9 11.5 10.6 7.8 6.7 6.1 1.4 1.3 1.2 2.0 2.3 2.7 11.1 11.5 11.6 244.6
Strategy
Strategy
Target O/S
Industrials
ABB SELL 1,171 950 (18.9) 248,219 3,730 212 18.4 27.6 36.9 29.7 50.3 33.7 63.8 42.5 31.8 30.7 23.4 18.5 7.6 6.7 5.9 0.4 0.6 0.8 12.4 16.8 19.7 1.1
BHEL SELL 137 100 (26.9) 334,832 5,032 2,448 2.3 5.0 7.8 161.2 118.6 55.4 59.9 27.4 17.6 27.5 11.1 5.5 1.0 1.0 0.9 0.4 0.9 1.5 1.7 3.6 5.4 22.1
Carborundum Universal REDUCE 289 250 (13.4) 54,395 817 188 10.4 13.6 16.8 36.7 30.5 23.7 27.7 21.3 17.2 14.8 11.8 9.7 4.1 3.7 3.2 1.1 1.4 1.7 15.7 18.3 20.0 2.5
Crompton Greaves REDUCE 79 75 (4.8) 49,388 742 627 2.4 3.8 5.7 3.4 57.9 50.1 32.7 20.7 13.8 10.7 7.6 6.0 1.0 1.0 1.0 0.6 0.8 1.5 3.2 5.0 7.2 5.0
Cummins India REDUCE 935 850 (9.1) 259,085 3,894 277 28.5 32.6 36.1 7.7 14.4 10.6 32.8 28.7 25.9 30.6 26.3 22.9 7.4 6.7 6.1 1.6 1.8 2.0 23.7 24.6 24.6 4.5
Havells India REDUCE 449 355 (20.9) 280,279 4,212 624 10.8 12.4 14.0 39.2 14.3 13.1 41.5 36.3 32.1 28.2 24.1 20.9 8.7 7.7 7.0 0.9 1.1 1.4 22.3 22.6 22.8 9.7
Kalpataru Power Transmission BUY 252 300 18.9 38,718 582 153 12.5 13.8 21.9 63.8 10.3 58.3 20.1 18.2 11.5 7.3 6.8 5.3 1.6 1.4 1.3 0.6 0.6 0.6 8.0 8.2 11.9 0.7
KEC International ADD 124 160 29.6 31,750 477 257 9.4 13.1 16.3 26.5 38.6 24.9 13.1 9.5 7.6 6.5 5.6 4.9 1.9 1.6 1.3 1.0 1.4 1.8 15.0 18.1 19.3 0.8
L&T REDUCE 1,454 1,500 3.2 1,355,093 20,365 930 55.5 72.8 87.8 9.0 31.1 20.6 26.2 20.0 16.6 19.3 17.0 14.7 3.4 3.1 2.7 1.5 1.5 1.8 13.4 16.1 17.4 37.9
Siemens SELL 1,261 900 (28.7) 449,210 6,751 356 26.6 32.3 40.3 45.2 21.8 24.5 47.5 39.0 31.3 29.6 24.2 19.2 6.4 6.0 5.5 1.1 1.3 1.6 13.8 15.8 18.3 4.6
Thermax REDUCE 914 770 (15.7) 108,879 1,636 119 25.8 28.4 35.7 11.7 9.9 25.9 35.4 32.2 25.6 23.1 20.7 17.5 4.2 3.8 3.5 0.6 0.7 0.8 12.5 12.5 14.2 1.0
Voltas ADD 396 360 (9.1) 131,080 1,970 331 12.6 15.7 17.8 21.0 24.6 13.1 31.4 25.2 22.3 25.0 19.4 16.8 4.9 4.4 4.0 1.0 1.4 1.8 16.5 18.4 18.8 9.2
Industrials Cautious 3,340,927 50,209 39.1 32.7 24.7 33.3 25.1 20.1 20.5 17.1 14.1 3.2 2.9 2.7 1.1 1.3 1.6 9.5 11.7 13.3 99.0
Infrastructure
Adani Port and SEZ ADD 265 255 (3.9) 549,734 8,262 2,085 14.7 13.0 13.2 6.9 (11.3) 1.2 18.1 20.4 20.1 14.8 13.2 12.9 3.5 3.1 2.7 0.5 0.8 0.9 21.0 16.0 14.3 21.0
Ashoka Buildcon BUY 172 220 28.1 32,152 483 188 4.7 3.5 3.5 49.6 (24.3) 0.5 36.9 48.8 48.5 9.4 8.8 8.0 1.7 1.7 1.6 0.8 1.1 1.3 4.6 3.4 3.4 0.6
Container Corporation REDUCE 1,404 1,350 (3.9) 273,763 4,114 195 42.7 49.5 57.7 5.7 16.0 16.6 32.9 28.4 24.3 21.3 17.5 14.6 3.2 3.0 2.8 1.0 1.2 1.4 10.0 10.9 11.8 4.2
Gateway Distriparks ADD 264 305 15.5 28,704 431 109 10.8 12.3 16.4 7.2 13.7 33.6 24.4 21.5 16.1 11.0 8.4 6.3 2.2 2.0 1.9 1.2 1.4 1.9 9.2 9.9 12.3 0.6
Gujarat Pipavav Port ADD 177 185 4.5 85,545 1,286 483 5.3 6.5 8.9 55.1 21.7 36.9 33.2 27.3 19.9 18.7 14.7 11.6 4.3 4.1 3.7 1.8 2.2 2.0 13.2 15.4 19.5 2.5
IRB Infrastructure BUY 251 285 13.5 88,249 1,326 351 16.6 13.3 18.7 (8.3) (20.1) 41.0 15.1 18.9 13.4 1.5 1.4 1.4 1.5 1.5 10.9 7.6 10.2 8.8
Sadbhav Engineering ADD 289 315 8.9 49,599 745 172 11.1 12.8 13.9 37.8 15.8 8.0 26.1 22.6 20.9 16.8 13.6 11.6 3.0 2.7 2.4 12.2 12.7 12.3 0.6
Infrastructure Attractive 1,107,747 16,648 7.8 (4.8) 11.5 21.6 22.7 20.3 11.1 9.7 8.7 3.0 2.7 2.5 0.8 1.0 1.0 13.7 11.9 12.3 38.2
Internet
Info Edge ADD 941 960 2.0 113,758 1,710 121 16.2 21.3 27.2 38.3 31.3 27.7 58.1 44.2 34.6 43.7 31.0 23.2 6.0 5.5 4.9 0.4 0.6 0.7 10.7 12.9 15.0 1.1
Just Dial REDUCE 433 460 6.3 30,058 452 69 18.4 20.8 22.6 (9.7) 12.7 8.8 23.5 20.8 19.1 15.3 11.1 9.5 3.8 3.3 2.9 0.5 0.5 17.6 17.0 16.0 15.7
Internet Attractive 143,816 2,161 14.3 24.0 20.9 44.4 35.8 29.6 33.0 23.9 18.9 5.4 4.8 4.3 0.4 0.5 0.7 12.1 13.4 14.4 16.9
Media
DB Corp. REDUCE 395 365 (7.5) 72,494 1,089 184 21.8 26.0 31.0 35.1 19.1 19.3 18.1 15.2 12.7 9.8 8.3 6.8 4.8 4.3 3.8 2.8 3.5 4.3 28.0 29.8 31.7 0.3
DishTV BUY 98 115 17.6 104,185 1,566 1,066 2.5 3.6 5.0 (61.9) 45.4 38.6 NM 27.2 19.6 9.4 8.0 7.0 6.2 6.2 6.2 1.0 15.8 23.0 31.9 9.9
Jagran Prakashan REDUCE 205 195 (4.7) 66,870 1,005 327 12.6 14.1 16.4 21.0 11.7 16.9 16.2 14.5 12.4 9.6 8.2 7.0 3.8 3.4 3.0 2.9 3.4 3.4 24.7 24.9 25.9 0.7
Ortel Communications BUY 149 190 27.5 4,524 68 30 5.0 6.7 13.6 28.5 33.9 102.4 29.6 22.1 10.9 8.3 6.9 5.3 2.9 2.6 2.1 10.4 12.4 21.1 0.0
PVR BUY 1,205 1,175 (2.5) 56,320 846 47 26.3 35.0 44.6 (2.2) 33.4 27.3 45.9 34.4 27.0 16.0 13.2 11.1 5.8 5.0 4.3 0.2 0.3 0.4 13.3 15.6 17.2 4.2
Sun TV Network ADD 527 500 (5.2) 207,840 3,124 394 27.0 29.9 34.2 15.3 10.6 14.6 19.5 17.7 15.4 12.3 10.7 9.2 5.4 4.9 4.4 2.8 3.2 3.6 28.7 29.0 30.1 12.8
Zee Entertainment Enterprises BUY 567 560 (1.3) 544,767 8,187 960 14.0 17.8 20.5 48.9 27.4 14.7 40.5 31.8 27.7 25.9 20.0 17.6 5.8 5.3 4.8 0.4 0.6 0.7 17.1 17.3 18.0 14.8
Media Attractive 1,056,999 15,885 10.0 21.3 18.4 29.2 24.1 20.3 15.4 12.7 11.0 5.4 5.0 4.5 1.2 1.4 1.7 18.7 20.7 22.2 42.7
Metals & Mining
Coal India REDUCE 321 315 (1.9) 2,029,132 30,495 6,316 22.1 25.6 28.6 (2.5) 15.8 11.7 14.5 12.6 11.2 9.3 8.3 7.4 5.6 5.2 4.8 4.8 5.6 6.2 38.0 42.6 44.0 18.1
Hindalco Industries SELL 157 110 (30.0) 324,719 4,880 2,065 9.0 10.9 12.6 230.6 21.4 15.6 17.6 14.5 12.5 7.7 7.1 6.6 0.8 0.8 0.7 0.6 0.6 0.6 4.7 5.5 6.0 26.8
Hindustan Zinc REDUCE 253 200 (21.1) 1,070,485 16,088 4,225 18.8 20.1 21.6 (3.0) 6.6 7.7 13.5 12.6 11.7 9.5 8.1 7.0 2.5 2.2 1.9 1.7 1.7 1.7 19.8 18.3 17.3 7.2
Jindal Steel and Power SELL 84 60 (28.1) 76,394 1,148 915 (13.2) (0.5) 5.2 27.7 96.3 1,151.0 (6.3) (170.2) 16.2 10.9 8.0 6.9 0.2 0.2 0.2 (4.4) (0.1) 1.3 20.5
JSW Steel ADD 1,788 2,015 12.7 432,127 6,494 242 150.6 170.9 211.3 1,530.8 13.4 23.7 11.9 10.5 8.5 6.8 6.1 5.3 2.0 1.7 1.4 0.5 0.5 0.5 16.6 17.2 18.0 17.4
National Aluminium Co. SELL 48 36 (25.2) 92,974 1,397 2,577 2.2 2.9 3.2 (20.1) 33.6 10.5 22.3 16.7 15.1 4.3 2.9 2.4 0.9 0.9 0.9 2.1 2.1 2.1 4.3 5.6 5.9 0.9
NMDC SELL 112 75 (32.9) 443,057 6,659 3,965 7.2 7.6 8.0 (9.5) 5.5 5.3 15.5 14.7 14.0 10.5 9.4 8.8 1.5 1.5 1.4 5.4 5.4 5.4 9.5 10.0 10.4 4.8
Tata Steel ADD 391 445 13.9 379,454 5,703 971 27.4 48.0 55.3 217.1 74.9 15.1 14.2 8 7.1 7.8 6.2 5.8 1.4 1.2 1.1 2.0 2.0 2.0 9.6 16.3 16.4 43.6
Vedanta ADD 192 190 (0.9) 568,332 8,541 2,965 16.4 20.7 25.8 108.2 26.6 24.3 11.7 9.3 7.4 6.5 5.4 4.5 1.2 1.1 1.0 1.5 1.5 1.5 11.5 12.1 13.5 37.9
Metals & Mining Cautious 5,416,673 81,405 53.1 22.8 15.3 14.1 11.5 10.0 8.1 6.9 6.1 1.8 1.6 1.5 3.0 3.3 3.6 12.4 14.1 14.9 177.2
Pharmaceutical
Apollo Hospitals REDUCE 1,344 1,270 (5.5) 186,956 2,810 139 22.6 32.0 42.1 4.0 41.6 31.7 59.5 42.1 31.9 25.8 20.9 17.3 5.1 4.7 4.2 0.4 0.6 0.8 8.8 11.6 13.9 4.1
Biocon SELL 957 515 (46.2) 191,390 2,876 200 26.0 27.6 33.0 30.4 5.9 19.6 36.7 34.7 29.0 19.9 16.1 12.9 4.0 3.7 3.4 1.0 1.0 1.2 11.4 11.1 12.2 20.1
Cipla BUY 592 590 (0.3) 475,431 7,145 805 20.6 27.8 37.4 23.1 34.8 34.6 28.7 21.3 15.8 18.4 13.3 10.0 3.6 3.1 2.7 0.7 1.0 1.3 13.0 15.7 16.3
Dr Lal Pathlabs REDUCE 1,063 925 (13.0) 87,956 1,322 83 19.0 22.4 26.3 19.2 18.0 17.8 56.1 47.5 40.4 34.1 28.7 24.1 13.9 11.2 9.1 0.3 0.3 0.4 27.7 26.1 25.0 2.1
Dr Reddy's Laboratories SELL 3,123 2,500 (20.0) 517,498 7,777 171 80.1 118.6 150.0 (42.5) 48.0 26.5 39.0 26.3 20.8 18.4 13.3 10.6 4.2 3.7 3.2 0.4 0.6 0.7 10.5 14.9 16.5 19.7
HCG BUY 224 250 11.7 19,036 286 85 1.9 1.9 4.0 1,171.4 0.7 117.1 120.7 119.9 55.3 22.5 17.9 13.7 3.4 3.4 3.2 2.9 2.8 5.9 0.5
Lupin REDUCE 1,492 1,600 7.2 672,833 10,112 450 62.1 69.5 81.4 23.0 12.0 17.1 24.0 21.5 18.3 15.0 13.0 10.9 5.0 4.2 3.5 0.6 0.7 0.8 22.9 21.2 20.8 30.1
Sun Pharmaceuticals SELL 759 715 (5.9) 1,827,764 27,469 2,406 29.6 32.6 37.5 33.9 10.1 15.2 25.6 23.3 20.2 16.8 13.1 10.9 4.8 4.0 3.4 0.8 0.9 1.0 20.5 18.8 18.3 38.1
Torrent Pharmaceuticals REDUCE 1,667 1,260 (24.4) 282,031 4,239 169 59.0 66.1 (42.4) 12.1 (100.0) 28.2 25.2 - 18.0 16.1 6.8 5.6 0.8 0.9 26.5 24.4 5.3
Pharmaceuticals Cautious 4,260,895 64,035 7.4 17.3 12.6 28.6 24.4 21.6 17.5 13.9 11.2 4.7 4.0 3.6 0.7 0.8 0.9 16.4 16.5 16.7 136.2
India
33
India
34
Target O/S
Real Estate
DLF BUY 159 180 13.3 283,438 4,260 1,801 2.8 1.5 3.0 (9.2) (44.6) 98.7 57.4 103.6 52.2 17.3 15.8 14.2 1.0 1.0 1.0 1.2 1.2 1.2 1.7 1.0 1.9 22.2
Godrej Properties REDUCE 354 280 (20.9) 76,556 1,151 216 9.7 10.3 11.3 (9.3) 6.2 9.8 36.5 34.4 31.3 60.4 47.8 29.0 3.3 3.1 2.9 0.7 0.7 9.3 9.2 9.5 1.2
Oberoi Realty BUY 313 350 11.9 106,083 1,594 339 9.9 29.7 44.7 (21.5) 201.1 50.7 31.7 10.5 7.0 20.1 6.3 5.8 1.9 1.6 1.3 0.6 0.6 0.6 6.2 16.7 21.1 1.6
Prestige Estates Projects BUY 206 250 21.1 77,400 1,163 375 7.0 8.4 8.9 (24.8) 18.7 6.3 29.3 24.7 23.2 13.6 13.1 12.5 1.8 1.7 1.6 0.7 0.7 0.7 6.2 7.0 7.1 0.7
Sobha BUY 306 440 43.8 30,003 451 98 52.9 102.7 78.2 238.2 94.3 (23.9) 5.8 3.0 3.9 4.8 2.0 1.9 1.0 0.8 0.6 2.3 2.3 2.3 18.3 28.7 17.8 0.4
Sunteck Realty BUY 256 360 40.5 16,138 243 60 82.0 53.3 201.9 (34.9) (100.0) 3.1 4.8 - 2.3 0.4 0.7 0.6 0.8 0.8 26.2 14.1 1.0
Real Estate Attractive 589,619 8,861 23.2 35.6 8.6 25.6 18.8 17.4 14.2 10.7 10.8 1.3 1.2 1.2 1.0 1.0 1.0 5.0 6.4 6.9 27.1
Technology
HCL Technologies REDUCE 816 800 (2.0) 1,151,177 17,301 1,413 58.1 59.5 63.1 48.0 2.4 6.1 14.1 13.7 12.9 10.0 9.4 8.6 3.5 3.2 2.9 3.0 3.5 4.0 27.1 24.3 23.4 24.1
Hexaware Technologies ADD 190 215 13.2 57,313 861 304 13.2 15.7 17.6 2.1 18.6 12.6 14.4 12.1 10.8 9.6 7.8 6.7 3.8 3.4 3.0 4.6 4.6 4.6 27.2 29.8 30.0 3.3
Infosys ADD 1,042 1,215 16.7 2,392,268 35,952 2,286 61.8 70.5 78.3 4.8 14.1 11.0 16.8 14.8 13.3 10.8 9.2 8.0 3.7 3.3 2.9 2.6 2.9 3.4 23.1 23.5 23.4 67.5
Mindtree REDUCE 498 540 8.3 83,647 1,257 168 32.3 39.0 45.2 (10.0) 20.8 15.9 15.4 12.8 11.0 8.9 7.3 6.1 3.0 2.6 2.3 1.7 2.1 2.4 21.1 22.0 21.9 6.3
Mphasis SELL 548 460 (16.1) 115,198 1,731 210 38.1 40.0 41.1 10.7 4.9 2.7 14.4 13.7 13.3 8.8 8.0 7.6 1.7 1.7 1.6 3.5 3.7 3.8 12.4 12.4 12.1 1.0
TCS REDUCE 2,386 2,425 1.6 4,702,131 70,666 1,970 132.2 145.2 159.9 7.5 9.8 10.2 18.1 16.4 14.9 12.8 11.3 10.1 5.4 4.6 4.0 2.2 2.4 2.7 32.6 30.4 28.7 49.6
Tech Mahindra BUY 425 540 27.0 412,884 6,205 872 36.3 41.5 47.2 1.5 14.2 13.9 11.7 10.3 9.0 7.9 6.4 5.3 2.3 1.9 1.6 2.9 1.4 1.7 20.7 20.3 19.6 12.4
Wipro REDUCE 480 485 1.1 1,165,655 17,518 2,467 34.5 38.3 41.0 (4.2) 10.9 7.1 13.9 12.5 11.7 8.3 7.2 6.1 2.3 2.0 1.8 1.0 1.0 1.0 17.2 17.2 16.3 16.5
Technology Neutral 10,080,273 151,492 8.2 10.1 9.7 16.3 14.9 13.5 10.9 9.6 8.4 3.8 3.4 3.0 2.3 2.5 2.8 23.5 22.8 22.0 180.6
Telecom
Bharti Airtel BUY 322 365 13.5 1,285,964 19,326 3,997 9.1 7.9 12.5 (6.5) (12.9) 57.7 35.2 40.5 25.7 6.4 6.5 5.6 1.9 1.9 1.8 0.7 0.7 1.5 5.4 4.6 7.2 20.1
Bharti Infratel ADD 376 400 6.3 695,915 10,459 1,897 15.7 17.0 18.9 25.2 8.3 11.2 23.9 22.1 19.9 11.4 10.4 9.6 4.1 4.0 3.9 2.9 3.1 3.5 16.5 18.4 19.7 10.8
IDEA BUY 80 105 31.3 287,884 4,326 3,601 1.1 (2.7) (2.5) (87.1) (341.5) 7.1 72.6 (30.1) (32.4) 6.5 7.1 6.4 1.2 1.3 1.4 1.9 2.6 3.8 1.6 (4.1) (4.1) 14.2
Tata Communications ADD 610 515 (15.6) 173,836 2,613 285 11.2 17.3 23.5 584.3 54.4 35.4 54.3 35.2 26.0 8.3 7.4 6.8 (92.1) 56.7 17.8 1.1 1.1 1.1 (105.4) 838.2 104.2 7.1
Telecom Cautious 2,559,461 38,465 (22.5) (14.7) 40.4 32.7 38.4 27.3 7.1 7.1 6.2 1.8 1.8 1.8 1.3 1.5 2.1 5.6 4.7 6.5 69.3
Utilities
Adani Power SELL 26 26 1.2 87,829 1,320 3,334 2.8 4.7 4.5 93.8 64.2 (2.5) 9.1 5.5 5.7 6.5 5.6 5.3 1.0 0.9 0.8 12.1 17.1 14.2 2.5
CESC ADD 614 685 11.5 81,390 1,223 133 56.2 72.6 93.9 101.1 29.2 29.3 10.9 8.5 6.5 7.0 6.5 5.7 0.9 0.8 0.7 1.7 1.8 1.8 8.1 9.9 11.8 3.3
JSW Energy ADD 75 80 7.1 122,512 1,841 1,640 7.4 8.7 7.9 (2.4) 17.5 (8.8) 10.1 8.6 9.4 5.8 5.2 5.1 1.3 1.2 1.1 2.7 2.7 2.7 13.6 14.4 12.0 4.2
NHPC REDUCE 26 24 (7.2) 286,177 4,301 11,071 2.8 3.4 3.6 4.1 22.1 7.2 9.3 7.7 7.1 7.6 6.1 5.3 0.9 0.9 0.8 6.1 7.5 7.9 9.6 11.3 11.7 1.7
NTPC BUY 152 180 18.1 1,257,021 18,891 8,245 11.5 14.3 15.8 (0.2) 24.7 10.2 13.3 10.6 9.7 11.2 9.2 7.5 1.3 1.2 1.1 2.3 2.8 3.1 10.3 12.0 12.2 10.4
Power Grid BUY 181 210 15.8 949,010 14,262 5,232 13.8 15.1 17.8 20.7 10.0 17.9 13.2 12.0 10.2 9.6 8.3 7.2 2.0 1.7 1.5 1.5 1.7 2.0 15.8 15.5 16.1 13.6
Reliance Power SELL 49 36 (25.9) 136,329 2,049 2,805 4.8 5.3 5.9 (1.1) 11.1 10.1 10.1 9.1 8.3 6.2 6.5 6.7 3.0
Tata Power ADD 78 80 2.2 211,772 3,183 2,800 5.5 6.2 6.8 0.9 12.1 9.6 14.1 12.6 11.5 1.5 1.5 1.5 10.0 10.4 10.5 6.6
Utilities Attractive 3,132,040 47,070 9.2 20.0 10.8 12.3 10.2 9.2 9.1 7.9 6.9 1.3 1.2 1.1 2.2 2.6 2.8 10.6 11.7 11.9 45.4
Others
Astral Poly Technik REDUCE 435 425 (2.3) 52,091 783 120 11.1 14.8 19.1 31.7 34.2 28.5 39.3 29.3 22.8 19.8 15.5 12.2 5.7 4.8 4.0 0.1 0.1 0.2 15.7 17.9 19.3 0.5
Cera Sanitaryware REDUCE 2,471 2,050 (17.0) 32,138 483 13 73.7 93.2 112.2 14.9 26.4 20.4 33.5 26.5 22.0 19.6 15.6 13.0 6.4 5.3 4.4 0.4 0.4 0.4 20.8 21.8 21.7 0.7
Dhanuka Agritech BUY 675 780 15.6 33,763 507 50 25.9 31.0 38.0 19.9 19.6 22.7 26.0 21.8 17.7 19.4 16.1 12.9 5.9 5.0 4.2 1.0 1.1 1.4 24.7 24.8 25.5 0.6
Godrej Industries REDUCE 445 390 (12.3) 149,499 2,247 336 17.6 20.6 21.7 22.4 17.0 5.0 25.2 21.6 20.5 19.4 17.4 17.3 3.7 3.2 2.8 0.4 0.4 0.4 15.8 16.1 14.7 3.0
HSIL ADD 348 345 (0.9) 25,181 378 72 14.6 19.1 25.7 18.9 30.6 34.3 23.8 18.2 13.6 9.7 8.0 6.7 1.7 1.6 1.5 1.1 1.1 1.1 7.5 9.2 11.4 0.8
InterGlobe Aviation ADD 950 1,020 7.4 342,303 5,144 351 53.2 73.9 93.4 (6.2) 38.8 26.4 17.9 12.9 10.2 11.7 8.3 6.5 13.8 9.6 7.0 2.8 3.9 4.9 92.0 88.4 79.4 7.7
Kaveri Seed BUY 411 460 12.0 28,364 426 69 28.9 39.7 48.4 15.2 37.4 22.0 14.2 10.3 8.5 11.0 7.6 5.9 2.7 2.3 2.0 2.1 2.9 4.1 20.5 24.4 25.6 3.9
PI Industries ADD 831 840 1.1 113,939 1,712 136 28.6 33.4 39.9 26.5 16.9 19.4 29.1 24.9 20.8 21.1 17.6 14.6 7.7 6.1 4.9 0.5 0.6 0.7 29.6 27.3 26.1 1.3
Rallis India ADD 237 240 1.1 46,147 694 194 10.2 12.8 15.7 38.7 25.8 22.6 23.3 18.5 15.1 15.0 11.8 9.4 4.5 3.8 3.2 1.3 1.4 1.5 20.6 22.4 23.4 1.3
SRF BUY 1,924 1,980 2.9 110,503 1,661 57 94.2 106.5 123.6 27.9 13.1 16.0 20.4 18.1 15.6 11.7 10.4 9.2 3.5 3.0 2.6 0.6 0.6 0.7 18.6 18.0 17.9 7.2
Tata Chemicals ADD 552 560 1.5 140,562 2,112 255 40.9 54.4 50.5 33.5 33.0 (7.0) 13.5 10.2 10.9 8.0 6.7 5.9 2.1 1.6 1.4 1.8 1.8 1.8 16.3 17.8 13.9 7.8
TeamLease Services ADD 1,065 1,175 10.3 18,208 274 16 22.2 29.3 37.6 39.2 32.2 28.3 48.1 36.4 28.3 35.8 24.1 17.8 5.2 4.6 3.9 11.5 13.4 14.9 0.5
UPL ADD 680 660 (3.0) 344,907 5,183 429 36.2 43.5 51.4 13.9 20.1 18.1 18.8 15.6 13.2 11.5 9.7 8.3 3.6 3.0 2.4 0.7 0.7 0.8 22.4 20.7 20.2 17.6
Whirlpool REDUCE 1,048 900 (14.1) 132,949 1,998 127 24.6 29.8 35.8 26.8 21.1 20.3 42.6 35.2 29.3 26.3 22.1 18.5 9.0 7.5 6.3 0.6 0.7 23.6 23.3 23.4 0.7
Others 1,513,236 22,742 19.4 26.9 16.4 20.6 16.3 14.0 12.9 10.5 8.9 4.6 3.7 3.1 1.2 1.5 1.8 22.3 22.9 22.4 52.3
KIE universe 83,081,932 1,248,601 22.0 21.7 15.5 19.1 15.7 13.6 10.7 9.2 8.1 2.5 2.3 2.0 1.5 1.7 2.0 13.0 14.3 14.9
KIE universe (ex-energy) 72,735,612 1,093,111 26.0 23.9 16.9 20.5 16.6 14.2 11.5 9.9 8.6 2.8 2.5 2.2 1.4 1.6 1.9 13.6 15.1 15.8
Notes:
(a) We have used adjusted book values for banking companies.
(b) 2017 means calendar year 2016, similarly for 2018 and 2019 for these particular companies.
(c) Exchange rate (Rs/US$)= 66.54
Strategy
Strategy India
"I, Sanjeev Prasad, hereby certify that all of the views expressed in this report accurately
reflect my personal views about the subject company or companies and its or their securities.
I also certify that no part of my compensation was, is or will be, directly or indirectly, related
to the specific recommendations or views expressed in this report."

India Strategy
Kotak Institutional Equities Research coverage universe

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

35.0%
expect this stock to deliver more than 15% returns over the
30.0% next 12 months; Add = We expect this stock to deliver 5-15%
30%
returns over the next 12 months; Reduce = We expect this stock
22.2% to deliver -5-+5% returns over the next 12 months; Sell = We
20% expect this stock to deliver less than -5% returns over the next
12.8% 12 months. Our target prices are also on a 12-month horizon
basis. These ratings are used illustratively to comply with
10%
3.3% applicable regulations. As of 30/06/2016 Kotak Institutional
2.2% 2.2%
0.0% Equities Investment Research had investment ratings on 180
0% equity securities.
BUY ADD REDUCE SELL
Source: Kotak Institutional Equities As of June 30, 2016

Disclosures
Ratings and other definitions/identifiers

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

Corporate Office Overseas Affiliates
Kotak Securities Ltd. Kotak Mahindra (UK) Ltd Kotak Mahindra Inc
27 BKC, Plot No. C-27, G Block 8th Floor, Portsoken House 369 Lexington Avenue
Bandra Kurla Complex, Bandra (E) 155-157 Minories 28th Floor, New York
Mumbai 400 051, India London EC3N 1LS NY 10017, USA
Tel: +91-22-43360000 Tel: +44-20-7977-6900 Tel:+1 212 600 8856
Copyright 2016 Kotak Institutional Equities (Kotak Securities Limited). All rights reserved.
1. Note that the research analysts contributing to this report may not be registered/qualified as research analysts with FINRA; and
2. Such research analysts may not be associated persons of Kotak Mahindra Inc and therefore, may not be subject to NASD Rule 2711 restrictions on communications with a
subject company, public appearances and trading securities held by a research analyst account.
3. Any U.S. recipients of the research who wish to effect transactions in any security covered by the report should do so with or through Kotak Mahindra Inc and (ii) any
transactions in the securities covered by the research by U.S. recipients must be effected only through Kotak Mahindra Inc at nilesh.jain@kotak.com.
This report is distributed in Singapore by Kotak Mahindra (UK) Limited (Singapore Branch) to institutional investors, accredited investors or expert investors only as defined under the
Securities and Futures Act. Recipients of this analysis / report are to contact Kotak Mahindra (UK) Limited (Singapore Branch) (16 Raffles Quay, #35-02/03, Hong Leong Building,
Singapore 048581) in respect of any matters arising from, or in connection with, this analysis / report. Kotak Mahindra (UK) Limited (Singapore Branch) is regulated by the Monetary
Authority of Singapore.
Kotak Securities Limited and its affiliates are a full-service, integrated investment banking, investment management, brokerage and financing group. We along with our affiliates are
leading underwriter of securities and participants in virtually all securities trading markets in India. We and our affiliates have investment banking and other business relationships with
a significant percentage of the companies covered by our Investment Research Department. Our research professionals provide important input into our investment banking and other
business selection processes. Investors should assume that Kotak Securities Limited and/or its affiliates are seeking or will seek investment banking or other business from the company
or companies that are the subject of this material and that the research professionals who were involved in preparing this material may participate in the solicitation of such business.
Our research professionals are paid in part based on the profitability of Kotak Securities Limited, which include earnings from investment banking and other business. Kotak Securities
Limited generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any
companies that the analysts cover. Additionally, Kotak Securities Limited generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or
advisory board member of any companies that the analysts cover. Our salespeople, traders, and other professionals may provide oral or written market commentary or trading
strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make investment decisions
that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing, among other things, may give
rise to real or potential conflicts of interest. Additionally, other important information regarding our relationships with the company or companies that are the subject of this material
is provided herein.
This material should not be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. We are
not soliciting any action based on this material. It is for the general information of clients of Kotak Securities Limited. It does not constitute a personal recommendation or take into
account the particular investment objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, clients should consider
whether it is suitable for their particular circumstances and, if necessary, seek professional advice. The price and value of the investments referred to in this material and the income
from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for future performance, future returns are not
guaranteed and a loss of original capital may occur. Kotak Securities Limited does not provide tax advise to its clients, and all investors are strongly advised to consult with their tax
advisers regarding any potential investment.
Certain transactions -including those involving futures, options, and other derivatives as well as non-investment-grade securities - give rise to substantial risk and are not suitable for all
investors. The material is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied on as such. Opinions
expressed are our current opinions as of the date appearing on this material only. We endeavor to update on a reasonable basis the information discussed in this material, but
regulatory, compliance, or other reasons may prevent us from doing so. We and our affiliates, officers, directors, and employees, including persons involved in the preparation or
issuance of this material, may from time to time have "long" or "short" positions in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned
herein. Kotak Securities Limited and its non US affiliates may, to the extent permissible under applicable laws, have acted on or used this research to the extent that it relates to non
US issuers, prior to or immediately following its publication. Foreign currency denominated securities are subject to fluctuations in exchange rates that could have an adverse effect on
the value or price of or income derived from the investment. In addition, investors in securities such as ADRs, the value of which are influenced by foreign currencies affectively
assume currency risk. In addition options involve risks and are not suitable for all investors. Please ensure that you have read and understood the current derivatives risk disclosure
document before entering into any derivative transactions.
Kotak Securities Limited established in 1994, is a subsidiary of Kotak Mahindra Bank Limited. Kotak Securities is one of India's largest brokerage and distribution house.
Kotak Securities Limited is a corporate trading and clearing member of BSE Limited (BSE), National Stock Exchange of India Limited (NSE), MSEI and United Stock Exchange of India
Limited (USEIL). Our businesses include stock broking, services rendered in connection with distribution of primary market issues and financial products like mutual funds and fixed
deposits, depository services and Portfolio Management.
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). Kotak Securities
Limited is also registered with Insurance Regulatory and Development Authority as Corporate Agent for Kotak Mahindra Old Mutual Life Insurance Limited and is also a Mutual Fund
Advisor registered with Association of Mutual Funds in India (AMFI). Kotak Securities Limited is registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014.
We hereby declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered in last five years. However SEBI,
Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on KSL for certain operational
deviations. We have not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has our certificate of registration been cancelled by SEBI at any
point of time.
We offer our research services to primarily institutional investors and their employees, directors, fund managers, advisors who are registered with us
Details of Associates are available on our website i.e. www.kotak.com
Research Analyst has not served as an officer, director or employee of Subject Company. We or our associates have received compensation from the subject company in the past 12
months. We or our associates have managed or co-managed public offering of securities for the subject company in the past 12 months. We or our associates have received
compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. We or our associates have received compensation
for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. We or our associates have
received compensation or other benefits from the subject company or third party in connection with the research report.
Research Analyst or his/her relative's may have financial interest in the subject company. Kotak Securities Limited or its associates have financial interest in the subject company.
Research Analyst or his/her relatives does not have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the
date of publication of Research Report: Kotak Securities Limited does not have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month
immediately preceding the date of publication of Research Report. Associates of Kotak Securities Limited may have actual/beneficial ownership of 1% or more securities of the subject
company at the end of the month immediately preceding the date of publication of Research Report. Subject Company has been client during twelve months preceding the date of
distribution of the research report.
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on the browser and select the"three years" icon in the price chart).
Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051, Telephone No.: +22
43360000, Fax No.: +22 67132430. Website: www.kotak.com. SEBI Registration No: NSE INB/INF/INE 230808130, BSE INB 010808153/INF 011133230, MSEI INE 260808130/INB
260808135/INF 260808135, Research Analyst INH000000586, AMFI ARN 0164 and PMS INP000000258. NSDL: IN-DP-NSDL-23-97. CDSL: IN-DP-CDSL-158-2001.
Compliance Officer Details: Mr. Manoj Agarwal. Call: 022 - 4285 6825, or Email: ks.compliance@kotak.com.
In case you require any clarification or have any concern, kindly write to us at below email ids:
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Company Report

Source: Kotak Institutional Equities estimates

Source: Kotak Institutional Equities estimates Important disclosures appear

Sanjeev Prasad Kawaljeet Saluja Rohit Chordia

Nischint Chawathe Murtuza Arsiwalla Chirag Talati, CFA

Hitesh Goel M.B. Mahesh, CFA Harish Bihani

Tarun Lakhotia Samar Sarda Suvodeep Rakshit

Abhishek Poddar Sunita Baldawa Aditya Mongia

Anand Shah Jaykumar Doshi Mohan Lal

Nishit Jalan Garima Mishra Simran Kaur

Kumar Gaurav Abhas Gupta Abhijeet Sakhare

Ajinkya Bhat Anindya Bhowmik (Research, KIE)

2 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Source: Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 3

Source: Kotak Institutional Equities estimates

4 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Dec-07 Dec-07 Dec-07

KOTAK INSTITUTIONAL EQUITIES RESEARCH

Source: Kotak Institutional Equities estimates

Mar-10 Mar-10 Mar-10

Jun-13 Jun-13 Jun-13

Sensex earnings growth ex-energy ex-banks (%)

Dec-15 Dec-15 Dec-15

Jun-16 Jun-16 Jun-16

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

Net sales EBITDA PAT

Source: Kotak Institutional Equities estimates

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

Net sales EBITDA PAT

Source: Companies, Kotak Institutional Equities estimates

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

Net sales EBITDA PAT

Source: Companies, Kotak Institutional Equities estimates

6 KOTAK INSTITUTIONAL EQUITIES RESEARCH

2QFY17/3QCY16 EARNINGS PREVIEW FOR KIE UNIVERSE

Source: Companies, Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 7

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

Source: Companies, Kotak Institutional Equities estimates

8 KOTAK INSTITUTIONAL EQUITIES RESEARCH

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

Source: Companies, Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 9

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

Source: Companies, Kotak Institutional Equities estimates

10 KOTAK INSTITUTIONAL EQUITIES RESEARCH

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

Source: Companies, Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 11

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

Source: Companies, Kotak Institutional Equities estimates

12 KOTAK INSTITUTIONAL EQUITIES RESEARCH

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

Source: Companies, Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 13

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

Source: Companies, Kotak Institutional Equities estimates

14 KOTAK INSTITUTIONAL EQUITIES RESEARCH

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

Source: Companies, Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 15

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

Source: Companies, Kotak Institutional Equities estimates