Group Name : WallStreet

Group Members:• Akshay Patidar• Dinesh Valiramani• Siddharth Amitanshu• Ninad Tambe

Our Investment Portfolio

Investment PortfolioSr.No Sector Share Name Current Share

Price (as on 20.06.14) (Rs.)

No. of shares

Total investment (Rs.)

1. Mining Coal India 385.15 41 15791.15

2. Real Estate

Larsen and Toubro 1656.7 20 33134.00

3. Pharmaceutical

Sun Pharmaceutical 642.55 50 32127.50

4. Oil & Gas ONGC 420.75 45 18933.75

TOTAL INVESTMENT 99986.4

Demand AccerationAs India’s per capita GDP increases, its mineral consumption will grow at a rapid pace in line with the growth witnessed in other emerging marketslike China and Brazil.

Advantage India

GDP contributionGiven the availability of mineral wealth in India, the Ministry of Mines, Government of India, has targeted significantly higher share of GDP from mining. It aims to increase share of mining and quarrying in GDP from current 2% of GDP to 5% of GDP over the next 20 years.

1.Minning Sector

Govt initiatives•Government to Speed Up Work on Rail Lines to Transport Coal.•The new government to prepare an action plan for enhancing output over the next five years .•fast-track the completion of projects and expansion of existing coal mines.

Sector Growth•Demand for this sector is incresed from all over the world.

•Mining Sector Contributes 2% of the GDP

Investment – Coal India

• Future prospect : Coal generates more than half of India's power and is the cheapest form of energy. Prime Minister Narendra Modi is exploring breaking up Coal India and opening up the sector to foreign investment to boost output and cut import. Any reform will begin with Coal India, as it accounts for 80 percent of India's total coal output.

• Coal India Ltd (CIL) has been advised to sign fuel supply agreements, with power plants that have entered into long-term PPAs with DISCOMs and would get commissioned on or before March 31, 2015

P/E ratio= 16.26

Dividend yield = 3.26

%

New Mines to be

explored

High Power Sector

Demand

2.Real Estate Sector

Growing Demand• Demand for residential properties has surged due to increased urbanisation and rising household income• Growing economy driving demand for commercial and retail space

Advantage India

Attractive opportunities• Growing requirements of space from sectors such as education and healthcare • Growth in tourism providing opportunities in the hospitality sector

Increasing Investments• FDI in real estate of USD22.67 billion between April 2000 and August 2013 • During April 2012–January 2013, the real estate sector accounted for 8.8 per cent of total FDI inflows into India

Policy support• Allocation of USD2.8 billion for rural housing for FY14 budget • The government has allowed FDI of up to 100 per cent in development projects for townships and settlements

•Real estate contributes about 5 per cent to India’s GDP •The market size of real estate in India is expected to increase at a CAGR of 11.2 per cent during FY2008 - 2020

Investment : Larsen & Tubro Ltd.• India is expected to witness major demand for office space in 2014 across the country’s

seven major cities – Delhi-NCR, Mumbai, Bengaluru, Chennai, Pune, Hyderabad and Kolkata.Scenario• Rapid growth in the infrastructure sector and demand for new urban locations.• gradual recovery in domestic demand this year, aided by government efforts to fast-track

stalled projects that will help its new orders grow by a fifth.Key Growth drivers

• Its is strengthening its focus on its real estate team.• measures taken to improve the return ratios, and performance of key subsidiaries ( real estate, finance.

Focus• Demand to grow at a CAGR of 19 per cent between 2010 and 2014 - 40 per cent of this from

Tier 1 cities.• At 3x to 4x, demand-supply gap is highest in the low and mid income segments• Increase in real estate projects in two-tier and three-tier cities

Notable trends• L&T looking for acquisitions worth $200 mn of small player to bridge the gap in some

sectors by taking advantage of attractive valuationsAcquisitions

3.Pharmaceuticals

Growing demandIndia’s cost of production is approx 60 % lower than that of the US & almost half of that of Europe

Due to lower cost of treatment, India is emerging as a leading destination for medical tourism

Economic driversEconomic prosperity to improve drug affordability

Increasing penetration of health insurance

Advantage India

Diversified portfolioAccounts for over 10 per cent of global pharmaceutical production

Over 60,000 generic brands across 60 therapeutic categories & more than 500 different APIs

Policy supportGovernment unveiled ‘Pharma Vision 2020’ aimed at making India a global leader in end - to - end drug manufacturing

Reduced approval time for new facilities to boost investments

• Indian Pharma companies spend 6 % of their total turnover on R&D and it is increasing.

• The pharmaceutical export market in India is thriving due to strong presence in the generics space.

• Multinational companies are collaborating with Indian Pharma firms to develop new drugs

Investment - Sun Pharma

• .

Share Price growth – last 2 years

•It’s only 30 years on that the firm is hitting its stride, having become one of the world’s most profitable generic drug makers.

Most Profitable

•Its revenues increased from USD 932 million in FY 09 to USD 2.1billion in FY13 ,increasing at a CAGR of 22 %.

High Growth•More than 60 % revenue is from North America. Currency Depreciation will also not affect the growth.

Export

•It has made 13 acquisitions between the late 1990s and 2012 and now it has agreed to buy out Ranbaxy for US$ 4 billion. The landmark deal makes the combined Sun–Ranbaxy entity the fifth largest generic drug-maker in the world

Acquisitions

•It is looking for partnerships or acquisitions to enter Japan, an especially lucrative market for manufacturers of low-cost drugs.

New Market

4.Oil and Gas Sector

High Consumption•India is the world’s fourth-largest energy consumer (2011); oil and gas account for 37.3 per cent of total energy consumption •Buoyant economic growth is the main factor driving the country’s energy requirements

Skilled workforce•About 139,068 people were employed in the petroleum industry at the end of FY12 •The University of Petroleum and Energy Studies in Dehradun, Uttarakhand, is Asia’s first and only energy university

Advantage India

Supportive FDI guidelines•100 per cent Foreign Direct Investment (FDI) is allowed in upstream and private sector refining projects •The FDI limit for public sector refining projects has been raised to 49 per cent

Policy support•Government has enacted various policies such as the New Exploration Licensing Policy (NELP) and Coal Bed Methane (CBM) policy to encourage investments across the industry’s value chain

•India’s economic growth, as with all other countries, is closely linked to energy demand. The need for oil and gas, which are among the primary sources for meeting energy requirements, is thus projected to grow further. •To meet this demand, the government has adopted several policies, such as allowing 100 per cent foreign direct investment (FDI) in several segments of the sector, including petroleum products, natural gas, pipelines, and refineries.

Investment:ONGCFuture prospect : • The Government of Assam has agreed

to allow the clearing of forest areas that were hindering a major investment by ONGC.

• ONGC will explore 30 additional shale gas wells in the country over the next two years. The company plans to invest about Rs 600 crore (US$ 96.81 million) for the project

ONGC

P/E ratio= 16.28

Dividend yield = 2.26

%

Win- win case of 1000 cr b/w ONGC and

Gujrat govt.

Gas price to be hiked from 1st July 2014

Thank You