bnktrinity2015.files.wordpress.com · B&K R ESEARCH 2 MAY 2015 TRINITY INDIA - 2015 Valuation summary............................ 4-14 Companies ......................... 16-515 Aarti

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B&K RESEARCH

2

MAY 2015

TRINITY INDIA - 2015

Valuation summary ............................ 4-14

Companies ......................... 16-515

Aarti Drugs ............................................. 16

Aarti Industries ....................................... 18

ACC ....................................................... 20

Aditya Birla Nuvo .................................. 22

AIA Engineering ..................................... 24

Ajanta Pharma ....................................... 26

Alembic Pharma ..................................... 28

Allahabad Bank ...................................... 30

Allcargo Logistics ................................... 32

Amtek Auto ............................................ 34

Andhra Bank ........................................... 36

APL Apollo Tubes .................................. 38

Arvind ..................................................... 40

Ashapura Intimates ................................ 42

Ashiana Housing .................................... 44

Ashok Layland ....................................... 46

Ashoka Buildcon ..................................... 48

Asian Paints ........................................... 50

Astral Poly Technik ................................ 52

Atul Auto ................................................ 54

Axis Bank ............................................... 56

Bajaj Corp .............................................. 58

Bajaj Electricals ...................................... 60

Balkrishna Industries .............................. 62

Balrampur Chini Mills ........................... 64

Bank of Baroda ...................................... 66

Bank of India .......................................... 68

BASF India ............................................. 70

BEML ..................................................... 72

Bharat Electronics .................................. 74

Bharat Petroleum Corporation ............... 76

Blue Dart Express ................................... 78

Bodal Chemicals .................................... 80

BOSCH .................................................. 82

Brigade Enterprises ................................. 84

Cadila Healthcare .................................. 86

Camlin Fine Science ............................... 88

Can Fin Homes ...................................... 90

Canara Bank .......................................... 92

Capital First ........................................... 94

CARE ..................................................... 96

Index ......................... Page No. Index ......................... Page No. Index ......................... Page No.

Castrol India .......................................... 98

Century Plyboards ............................... 100

Cera Sanitaryware ............................... 102

CESC ................................................... 104

Cholamandalam Investment & Finance ... 106

City Union Bank .................................. 108

Coal India ............................................. 110

CONCOR ............................................ 112

Coromandel International .................... 114

Cox & Kings ......................................... 116

Crompton Greaves ............................... 118

Cummins India .................................... 120

Dalmia Bharat ...................................... 122

DB Corp ............................................... 124

Deepak Fertilisers & Petrochemicals .... 126

DEN Networks ..................................... 128

Dhanuka Agritech ................................ 130

Dish TV Network ................................. 132

Dynamatic Technologies ...................... 134

Easun Reyrolle ...................................... 136

Elecon Engineering ............................... 138

Engineers India ..................................... 140

Entertainment Network ........................ 142

EPC Industries ..................................... 144

Essel Propack ....................................... 146

Federal Bank ......................................... 148

Finolex Industries ................................. 150

Fortis Healthcare .................................. 152

Gateway Distriparks ............................ 154

Gati ....................................................... 156

Geometric ............................................. 158

GIC Housing Finance .......................... 160

Glenmark Pharma ................................ 162

GMDC ................................................. 164

GMR Infrastructure .............................. 166

Godrej Industries .................................. 168

Great Eastern Shipping ........................ 170

Greenply Industries .............................. 172

Gujarat Fluorochemicals ...................... 174

Gujarat Pipavav Port ........................... 176

Gujarat State Fertilizers & Chemicals . 178

GVK Power & Infrastructure ................ 180

Hathway Cable & Datacom ................ 182

HDFC .................................................. 184

HDFC Bank ......................................... 186

HPCL ................................................... 188

IDBI Bank ............................................. 190

Idea Cellular ......................................... 192

IDFC .................................................... 194

Indag Rubber ........................................ 196

Indiabulls Housing Finance ................. 198

Indian Bank .......................................... 200

Indo Count Industries .......................... 202

Indoco Remedies ................................... 204

IndusInd Bank ...................................... 206

Info Edge ............................................... 208

Insecticides India .................................. 210

Jain Irrigation ....................................... 212

Jammu & Kashmir Bank ...................... 214

Jindal SAW ........................................... 216

Jindal Steel & Power ............................. 218

JK Tyre & Industries ............................. 220

JSW Energy .......................................... 222

JSW Steel .............................................. 224

Just Dial ................................................ 226

Jyothy Laboratories .............................. 228

Kalpataru Power Transmission ............ 230

Kansai Nerolac Paints .......................... 232

Karnataka Bank ................................... 234

Kaveri Seed ........................................... 236

Kewal Kiran Clothing ........................... 238

Kirloskar Oil Engines ........................... 240

KNR Construction ............................... 242

Kolte-Patil Developers ......................... 244

Kotak Mahindra Bank .......................... 246

KPIT Technologies ............................... 248

KPR Mill ............................................... 250

KRBL .................................................... 252

Kridhan Infra ........................................ 254

L&T Finance Holdings ......................... 256

Lakshmi Machine Works ..................... 258

Lakshmi Vilas Bank ............................. 260

Lovable Lingerie ................................... 262

Lycos Internet ....................................... 264

Maharashtra Seamless ........................ 266

Mahindra & Mahindra ......................... 268


B&K RESEARCH

3

MAY 2015


Index ......................... Page No. Index ......................... Page No. Index ......................... Page No.

Mahindra CIE ...................................... 270

Mahindra Finance ................................ 272

Mahindra Lifespace .............................. 274

Manappuram Finance .......................... 276

Mandhana Industries ........................... 278

Marico .................................................. 280

Marico Kaya ......................................... 282

Mastek .................................................. 284

Maxwell Industries ............................... 286

Mayur Uniquoters ................................ 288

MBL Infrastructure ............................... 290

MM Forgings ........................................ 292

Monte Carlo Fashion ........................... 294

Motherson Sumi ................................... 296

MphasiS ............................................... 298

MRPL ................................................... 300

MT Educare .......................................... 302

Nalco .................................................... 304

Natco Pharma ...................................... 306

Navin Fluorine International ................ 308

Navneet Education ............................... 310

NBCC ................................................... 312

NCC ..................................................... 314

Nelcast .................................................. 316

Neuland Laboratories ........................... 318

NHPC .................................................. 320

NIIT Technologies ................................ 322

Nitesh Estates ...................................... 324

NMDC ................................................. 326

NRB Bearings ....................................... 328

Oil India ............................................... 330

Omkar Speciality Chemicals ............... 332

ONGC .................................................. 334

Oriental Bank of Commerce ............... 336

Ortel Communications ........................ 338

PC Jewellers .......................................... 340

Pennar Industries .................................. 342

Persistent Systems ............................... 344

Pokarna ................................................. 346

Praj Industries ...................................... 348

Prestige Estates Projects ...................... 350

Pricol ..................................................... 352

Prism Cement ...................................... 354

Prozone Intu ......................................... 356

PTC India Financial Services .............. 358

Punjab National Bank .......................... 360

Purvankara Projects ............................. 362

Radico Khaitan ..................................... 364

Rain Industries ..................................... 366

Rallis India ........................................... 368

Ramco Systems ................................... 370

Ratnamani Metals & Tubes ................. 372

Raymond .............................................. 374

Redington (India) .................................. 376

Repco Home Finance ........................... 378

Sadbhav Engineering ............................ 380

Sagar Cement ...................................... 382

Sarla Performance Fibers ..................... 384

Setco Automotive ................................. 386

Shakti Pumps ....................................... 388

Shalimar Paints .................................... 390

Sharda Cropchem ................................ 392

Shemaroo Entertainment ..................... 394

Shoppers Stop ...................................... 396

Shreyas Shipping .................................. 398

Shriram City Union Finance ................ 400

Shriram Transport Finance .................. 402

Simplex Infrastructure .......................... 404

Sintex Industries ................................... 406

Siyaram Silk Mills ............................... 408

SJVN .................................................... 410

SKF India ............................................. 412

Skipper .................................................. 414

Snowman Logistics .............................. 416

Sobha .................................................... 418

Solar Industries .................................... 420

South Indian Bank ................................ 422

Speciality Restaurants .......................... 424

SRF ....................................................... 426

Star & Ferro Cement ............................ 428

State Bank of India .............................. 430

Steel Authority of India ....................... 432

Sterlite Technologies ............................ 434

Sun Pharma .......................................... 436

Sun Pharma Advanced Research Company ... 438

Sun TV Network .................................. 440

Sundaram Clayton ............................... 442

Suprajit Engineering ............................. 444

Sutlej Textiles & Industries .................. 446

Suzlon Energy ....................................... 448

Symphony ............................................ 450

Syndicate Bank ..................................... 452

TAFE .................................................... 454

TAKE Solutions .................................... 456

Talbros Automotive Components ....... 458

Tata Chemicals .................................... 460

TD Power Systems ............................... 462

Tech Mahindra ..................................... 464

Techno Electric & Engineering .............. 466

Texmaco Rail & Engineering ................ 468

The Ramco Cements ........................... 470

Thermax ............................................... 472

Titagarh Wagons .................................. 474

Transformers & Rectifiers (India) .......... 476

Trident .................................................. 478

TTK Prestige ........................................ 480

TVS Motor ........................................... 482

UCO Bank ........................................... 484

UltraTech Cement ................................ 486

Union Bank of India ............................. 488

United Bank of India ............................ 490

United Breweries ................................... 492

VA Tech Wabag .................................... 494

Vardhman Textiles ............................... 496

Vinati Organics .................................... 498

Voltamp Transformers ......................... 500

Voltas ................................................... 502

VST Tillers Tractors ............................ 504

Welspun Corp ....................................... 506

Welspun India ....................................... 508

Westlife Development ........................... 510

Yes Bank ............................................... 512

Intellect Design Arena .......................... 514

Volvo .................................................... 515


B&K RESEARCH

4

MAY 2015


Valuation summary (Companies under B&K Coverage)CMP Mkt Avg daily Adjusted EPS Absolute price

(Rs) Cap T/O-6m EPS (Rs) CAGR (%) performance (%)

Sector/Company 14-May-15 (US$ mn) (US$ '000) FY14 FY15 FY16E (FY14-16) 3M 6M 12M

Aarti Industries 318 442 662 18.3 22.8 29.1 25.9 7.5 8.9 115.9

ACC 1,475 4,350 10,015 46.7 45.4 64.9 17.9 (9.2) (2.4) 6.3

Aditya Birla Nuvo 1,868 3,818 5,564 49.9 40.5 60.0 9.6 2.4 3.6 62.2

AIA Engineering 1,157 1,714 1,947 36.8 48.1 53.4 20.6 10.7 7.4 89.3

Alembic Pharma 489 1,447 1,542 12.5 15.0 21.5 31.1 15.2 9.2 79.2

Allahabad Bank 109 975 5,678 22.4 11.1 20.2 (5.1) (2.7) (9.1) 6.1

Allcargo Logistics 311 617 590 14.0 17.4 22.6 27.0 (7.3) 0.7 120.1

Andhra Bank 80 754 4,945 7.6 10.7 14.9 40.2 (9.5) (8.2) 9.0

Arvind 257 1,044 9,564 14.4 15.3 19.1 15.5 (17.8) (8.7) 31.1

Ashok Leyland 71 3,190 18,404 (1.8) 7.2 9.7 – 6.5 31.2 178.7

Ashoka Buildcon 163 480 1,035 7.2 6.4 5.6 (11.6) 10.4 25.7 52.0

Asian Paints 796 12,001 21,457 12.8 15.2 21.6 29.8 (3.7) 18.5 43.0

Axis Bank 556 20,725 55,498 26.5 31.2 37.1 18.3 (4.3) 16.6 69.8

Bajaj Corp 438 1,014 2,162 11.7 14.3 18.4 25.2 (4.4) 53.8 107.0

Bajaj Electricals 238 377 1,310 (0.5) (3.8) 6.8 – 7.1 2.2 (26.3)

Balkrishna Industries 758 1,150 1,641 49.1 46.1 56.2 7.0 6.8 9.7 31.8

Balrampur Chini Mills 43 164 573 0.1 (2.0) 3.0 348.8 (26.5) (33.9) (31.9)

Bank of Baroda 165 5,717 18,861 21.6 15.5 20.4 (2.7) (10.1) (18.9) (14.1)

Bank of India 211 2,204 14,516 44.0 35.9 41.3 (3.2) (10.4) (26.0) (22.7)

BASF India 1,051 715 614 31.2 (19.1) 22.9 (14.2) (11.9) (20.7) 46.6

BEML 921 602 9,875 (2.7) (19.3) 32.1 – (0.2) 26.5 101.7

Bharat Electronics 3,143 3,951 15,059 116.5 119.6 132.9 6.8 (13.2) 40.0 137.1

Bharat Petroleum Corporation 757 8,596 17,990 56.2 46.8 57.3 1.0 4.4 3.0 45.9

Bodal Chemicals 32 55 172 7.8 8.6 8.9 6.8 (16.4) (14.4) 19.5

BOSCH 22,794 11,244 18,067 281.7 343.4 490.9 32.0 (8.6) 37.6 112.1

Brigade Enterprises 150 265 398 7.6 7.4 11.4 22.5 (9.2) 5.1 85.1

Cadila Healthcare 1,657 5,329 4,137 40.3 58.4 69.8 31.6 3.8 7.0 71.2

Canara Bank 370 2,763 14,744 53.9 57.6 57.3 3.1 (11.2) (8.1) 10.9

CARE 1,520 693 2,100 45.6 49.4 60.1 14.9 (7.2) 16.0 93.9

Castrol India 482 3,745 2,682 10.3 9.6 13.1 12.9 (2.9) 9.0 67.3

CESC 543 1,131 5,435 51.7 55.9 59.5 7.2 (22.0) (28.3) 4.6

Cholamandalam Inv. & Fin. 575 1,299 1,150 25.4 30.4 35.1 17.5 2.0 17.5 98.2

Coal India 370 36,734 26,151 24.0 22.0 23.7 (0.6) (2.0) 3.9 7.8

CONCOR 1,785 5,468 5,060 50.5 53.3 58.8 7.9 26.4 32.9 67.3

Coromandel International 256 1,172 1,423 13.3 14.3 20.1 23.2 (10.5) (18.5) 6.7

Cox & Kings 294 782 2,014 20.1 23.5 28.7 19.6 (7.9) (4.7) 92.5

Crompton Greaves 173 1,702 13,589 3.9 4.0 9.0 51.9 (0.8) (9.0) (4.4)

Cummins India 865 3,768 3,248 21.6 28.1 29.2 16.2 (4.9) 1.9 58.8

DB Corp 365 1,053 254 16.7 17.2 21.6 13.6 (3.0) 2.7 29.9

Deepak Fertilisers 135 187 376 30.1 8.9 28.1 (3.3) 6.0 (4.7) (0.4)

Dhanuka Agritech 601 472 348 18.6 21.3 25.7 17.5 16.3 15.4 119.1


B&K RESEARCH

5

MAY 2015


Valuation summary (Companies under B&K Coverage)

EBITDA PER Debt/ RoE RoCE EV/ Price/ Yield

Margin (%) (%) Equity(x) (%) (%) EBITDA (x) BV (%)

Sector/Company FY14 FY15 FY16E FY14 FY15 FY16E FY15 FY15 FY15 FY15 FY15 FY15

Aarti Industries 15.5 16.3 16.6 6.7 15.4 10.9 1.1 21.5 16.0 9.1 3.1 1.6

ACC 14.9 13.2 15.7 23.7 30.9 22.7 (0.3) 10.8 13.5 15.7 3.3 2.3

Aditya Birla Nuvo 10.9 11.3 12.4 21.9 41.0 31.1 0.4 6.3 8.1 24.8 2.5 0.4

AIA Engineering 24.1 27.0 27.1 15.2 26.0 21.6 (0.4) 23.5 30.1 18.3 5.6 0.5

Alembic Pharma 19.2 19.8 21.2 22.8 30.3 22.7 0.3 36.3 36.4 21.7 9.7 0.7

Allahabad Bank – – – 4.1 8.2 4.5 – 5.0 – – 0.7 1.8

Allcargo Logistics 8.1 8.1 8.4 11.0 18.1 13.7 0.1 11.6 12.9 9.2 2.0 0.5

Andhra Bank – – – 8.4 6.0 4.3 – 6.5 – – 0.6 3.2

Arvind 13.6 12.9 13.7 12.1 17.1 13.4 1.2 16.6 14.8 9.9 2.8 1.0

Ashok Leyland 1.7 27.1 28.1 (12.9) 10.2 7.4 0.2 43.3 28.2 6.5 3.5 0.0

Ashoka Buildcon 22.0 22.4 26.8 10.7 27.5 29.2 2.3 7.8 2.6 14.6 2.1 0.9

Asian Paints 16.0 16.0 19.0 42.8 53.4 36.9 (0.3) 33.3 41.5 33.6 16.5 0.8

Axis Bank – – – 11.0 9.4 7.9 – 17.2 – – 1.6 1.6

Bajaj Corp 27.8 29.2 30.7 18.5 32.0 23.8 (0.6) 41.7 52.7 27.0 13.8 2.5

Bajaj Electricals 2.0 1.8 4.7 (546.0) (61.6) 35.2 0.6 (5.6) 5.6 36.1 3.6 1.7

Balkrishna Industries 23.6 23.8 23.4 9.7 14.1 13.5 0.9 21.1 13.5 8.6 2.7 0.3

Balrampur Chini Mills 8.0 4.4 9.2 374.4 (24.6) 14.1 1.2 (4.1) 1.2 20.6 1.0 0.0

Bank of Baroda – – – 6.7 9.3 7.1 – 8.6 – – 1.0 2.3

Bank of India – – – 5.2 6.4 5.5 – 7.9 – – 0.7 2.6

BASF India 6.4 2.8 7.0 27.6 (58.7) 45.8 1.3 (7.1) 0.0 47.6 4.3 0.4

BEML 3.9 (0.4) 6.5 (108.5) (57.0) 28.7 0.3 (4.0) 0.0 (514.6) 2.3 0.2

Bharat Electronics 14.6 14.3 14.7 9.9 28.0 23.7 (0.6) 12.9 15.9 22.6 3.5 0.7

Bharat Petroleum Corporation 3.4 3.0 4.0 8.2 17.3 13.2 0.9 16.5 13.0 12.9 2.7 2.0

Bodal Chemicals 19.9 18.4 17.7 2.4 4.0 3.6 1.8 81.0 34.0 3.6 2.3 0.0

BOSCH 12.6 13.6 16.1 35.7 56.7 46.4 (0.6) 15.8 22.6 42.2 8.3 0.4

Brigade Enterprises 34.9 32.6 31.3 8.1 19.4 13.2 0.7 6.4 10.1 7.4 1.2 1.4

Cadila Healthcare 17.0 20.7 21.2 25.4 29.8 23.7 0.3 31.1 22.6 21.2 8.4 0.7

Canara Bank – – – 4.9 4.6 4.6 – 9.9 – – 0.6 4.1

CARE 63.3 63.3 63.3 16.4 30.0 25.3 (0.5) 34.0 47.2 25.0 11.9 5.3

Castrol India 21.6 21.1 22.5 30.0 52.3 36.8 (0.8) 78.7 120.0 34.1 49.6 1.5

CESC 25.1 22.3 21.9 9.7 10.8 9.1 0.4 9.6 10.1 7.3 1.0 0.9

Cholamandalam Inv. & Fin. – – – 22.6 18.9 16.4 – 17.5 – – 3.1 0.6

Coal India 23.2 20.9 20.8 12.0 16.5 15.6 (1.4) 33.4 26.2 11.3 5.6 5.7

CONCOR 22.1 23.8 24.6 19.2 29.7 30.4 (0.3) 14.1 16.9 21.2 4.0 0.8

Coromandel International 8.1 7.5 9.0 16.9 18.8 12.7 0.8 18.1 18.8 11.0 3.5 1.7

Cox & Kings 38.6 39.3 42.7 8.0 13.8 10.2 0.7 18.4 11.2 7.8 2.1 0.3

Crompton Greaves 5.1 5.2 7.2 41.1 41.9 19.2 0.3 6.5 10.4 16.3 2.6 0.9

Cummins India 17.9 17.3 18.1 27.6 31.3 29.6 (0.2) 28.4 31.8 32.4 8.4 1.5

DB Corp 27.1 28.0 29.7 18.5 21.3 16.9 (0.1) 26.0 34.1 11.8 5.2 2.1

Deepak Fertilisers 13.1 8.1 11.9 4.0 15.5 4.8 0.4 5.2 9.0 6.1 0.8 4.4

Dhanuka Agritech 16.3 17.4 18.0 13.5 32.0 23.4 0.0 28.6 31.9 24.4 8.3 0.7


B&K RESEARCH

6

MAY 2015





Dish TV 80 1,333 5,430 (0.4) 0.1 2.1 – (2.8) 26.2 70.6

Dynamatic Technologies 3,129 312 853 27.7 28.2 82.2 72.2 44.9 29.5 281.6

Elecon Engineering 67 115 1,099 1.3 1.5 3.2 59.8 36.2 31.7 53.9

Engineers India 190 1,005 2,528 14.4 8.7 10.6 (14.1) (10.5) (15.9) (21.9)

Entertainment Network 682 511 289 17.5 22.9 25.5 20.6 10.0 31.9 83.2

Federal Bank 137 1,841 7,258 9.8 11.7 13.5 17.1 (2.2) (2.0) 31.3

Fortis Healthcare 161 1,170 3,635 2.9 (1.9) 3.1 3.0 15.8 40.4 61.3

Gateway Distriparks 352 601 1,942 12.5 17.3 14.9 9.1 (12.3) 10.3 89.4

Geometric 142 144 2,512 7.4 7.9 8.9 9.6 13.1 8.8 23.2

Glenmark Pharma 914 3,894 12,335 25.7 26.4 34.2 15.4 19.2 18.5 60.9

GMDC 99 494 560 13.5 14.2 16.0 9.0 (17.2) (34.2) (26.0)

GMR Infrastructure 15 1,256 5,793 (4.7) (5.6) (3.9) (8.5) (16.3) (23.4) (46.1)

Great Eastern Shipping 350 828 797 30.8 42.3 46.6 23.1 (0.4) (12.3) 1.4

Gujarat Pipavav Port 222 1,683 5,337 3.6 6.8 8.1 49.8 5.2 24.0 113.7

Gujarat State Fertilizers & Chem. 77 483 1,631 10.1 10.1 10.4 1.4 (17.2) (33.8) 16.3

GVK Power & Infrastructure 8 203 788 (2.3) (5.3) (5.8) 58.2 (17.2) (32.8) (44.8)

Hathway Cable & Datacom 53 691 511 (1.5) (3.5) (1.0) (18.9) (15.9) (19.0) 7.6

HDFC 1,210 29,925 59,201 34.9 38.0 44.6 13.1 (4.6) 7.4 36.1

HDFC Bank 991 39,045 32,301 35.5 41.7 50.4 19.1 (7.0) 6.6 27.8

HPCL 599 3,187 17,098 51.1 55.6 57.1 5.6 (4.3) 7.9 59.1

IDBI Bank 70 1,755 5,153 7.6 4.0 5.6 (14.2) 3.4 (2.9) (6.1)

Idea Cellular 172 9,745 17,714 6.1 8.9 9.4 24.3 11.5 6.2 23.2

IDFC 158 3,955 17,328 11.9 10.7 11.3 (2.5) (8.8) 2.2 30.2

Indian Bank 159 1,200 757 25.9 21.3 24.9 (1.9) (14.6) (12.2) 14.5

Indo Count Industries 513 318 490 31.0 43.6 55.1 33.4 17.7 81.2 797.9

Indoco Remedies 349 506 494 6.3 9.4 12.9 43.3 9.2 17.9 142.8

IndusInd Bank 817 6,794 13,951 26.9 34.0 42.8 26.2 (6.7) 11.8 52.1

Info Edge 717 1,354 2,119 11.8 13.3 17.5 22.0 (12.0) (25.9) 24.5

Jammu & Kashmir Bank 104 793 2,208 24.4 12.2 16.7 (17.3) (5.4) (23.6) (44.9)

Jindal SAW 65 295 2,825 (0.6) 3.9 11.2 – (17.2) (34.5) 8.6

Jindal Steel & Power 139 1,996 22,386 20.9 14.2 10.0 (30.8) (8.8) (12.4) (46.9)

JK Tyre & Industries 121 431 6,082 12.5 16.2 17.9 19.9 (3.0) 16.8 217.9

JSW Energy 111 2,869 7,097 5.8 8.2 7.6 13.9 (2.5) 46.8 86.0

JSW Steel 906 3,441 10,240 89.6 76.3 97.6 4.4 (8.1) (26.8) (22.6)

Just Dial 1,090 1,207 9,839 17.1 18.5 21.9 13.2 (24.9) (26.9) (3.5)

Kalpataru Power Transmission 224 539 1,541 9.5 11.8 16.7 32.3 (5.5) 33.4 69.8

Kansai Nerolac Paints 220 1,860 1,049 4.0 5.0 7.0 31.2 (8.9) 15.6 74.0

Karnataka Bank 124 367 4,986 16.5 19.6 21.9 15.0 (9.9) (9.7) (5.4)

Kaveri Seed 858 930 2,492 30.6 44.0 51.9 30.3 (4.8) (5.6) 64.2

Kewal Kiran Clothing 2,243 434 103 54.4 53.8 62.3 7.0 27.7 31.7 74.0

Kirloskar Oil Engines 271 616 130 12.3 9.9 11.5 (3.7) (1.2) 4.9 21.5


B&K RESEARCH

7

MAY 2015






Dish TV 24.9 25.7 29.4 (134.8) 927.7 38.1 (2.7) (3.1) 12.9 13.3 (28.8) 0.0

Dynamatic Technologies 10.3 8.7 9.6 30.6 136.9 38.1 1.2 7.1 11.1 19.1 7.5 0.1

Elecon Engineering 11.6 12.8 13.8 26.8 44.4 20.8 1.0 3.1 8.5 7.6 1.4 1.7

Engineers India 20.9 9.6 14.4 15.7 22.3 17.9 (0.7) 11.3 16.1 27.1 2.5 2.1

Entertainment Network 31.7 33.2 35.2 21.3 34.4 26.7 (0.7) 17.3 23.6 22.3 5.5 0.3

Federal Bank – – – 9.8 8.1 7.1 – 13.2 – – 1.1 2.7

Fortis Healthcare 1.3 3.1 6.4 33.2 (85.9) 51.6 0.3 (2.1) 0.3 71.0 1.8 0.0

Gateway Distriparks 25.4 29.4 29.3 13.2 23.8 23.6 0.3 21.3 17.0 14.5 4.8 1.7

Geometric 18.9 11.9 11.8 15.7 21.1 16.1 (0.2) 13.4 22.0 7.1 2.6 1.2

Glenmark Pharma 21.5 20.3 20.9 22.0 29.8 26.7 0.6 21.2 18.0 17.3 5.7 0.4

GMDC 47.2 40.0 40.1 9.8 7.9 6.2 (0.0) 14.9 15.9 6.0 1.1 2.8

GMR Infrastructure 25.8 23.2 31.3 (4.6) (3.0) (3.9) 5.8 (41.1) 1.7 19.5 1.3 0.0

Great Eastern Shipping 46.3 41.7 44.0 11.1 8.6 7.5 0.4 9.0 8.0 6.0 0.7 3.0

Gujarat Pipavav Port 49.5 57.2 58.1 17.4 30.2 27.2 (0.1) 21.1 20.4 25.2 5.8 0.0

Gujarat State Fertilizers & Chem. 10.9 10.6 10.1 5.6 8.3 7.4 0.1 9.3 9.5 6.5 0.7 2.6

GVK Power & Infrastructure 35.7 24.3 39.2 (4.7) (1.8) (1.4) 5.4 (33.4) 0.4 33.8 0.7 0.0

Hathway Cable & Datacom 19.0 12.3 22.2 (32.4) (13.9) (53.9) 0.8 (28.3) (3.7) 25.7 3.6 0.0

HDFC – – – 34.7 31.8 27.1 – 20.3 – – 6.2 1.2

HDFC Bank – – – 21.1 18.0 14.9 – 18.9 – – 3.1 1.0

HPCL 2.7 2.3 2.8 6.1 11.7 10.5 1.5 12.2 6.0 11.5 1.4 2.4

IDBI Bank – – – 8.6 16.2 11.6 – 2.8 – – 0.6 1.5

Idea Cellular 31.4 34.2 35.0 22.7 20.7 18.4 0.6 16.2 12.7 7.4 2.9 0.4

IDFC – – – 13.3 14.7 14.0 – 10.6 – – 1.5 1.6

Indian Bank – – – 4.4 5.4 4.6 – 7.8 – – 0.5 3.7

Indo Count Industries 12.1 17.6 18.3 1.3 8.6 9.3 0.9 70.4 36.5 5.9 4.6 0.0

Indoco Remedies 16.7 20.2 20.8 22.3 38.5 27.0 0.1 17.4 20.4 19.4 6.2 0.6

IndusInd Bank – – – 18.7 14.8 11.7 – 18.4 – – 2.6 0.8

Info Edge 33.0 28.2 29.9 52.7 63.1 41.0 (0.8) 12.9 18.8 51.3 6.0 0.1

Jammu & Kashmir Bank – – – 6.3 12.7 9.2 – 9.5 – – 1.4 2.0

Jindal SAW 9.6 11.2 12.5 (87.7) 17.0 5.8 1.9 3.1 6.0 9.7 0.5 1.5

Jindal Steel & Power 27.3 31.3 24.6 14.0 11.1 13.9 1.9 5.8 5.8 8.9 0.7 1.0

JK Tyre & Industries 11.3 12.5 12.0 2.8 6.5 6.7 1.9 33.6 17.3 4.9 2.0 0.7

JSW Energy 37.3 38.0 35.9 10.1 14.5 14.7 0.9 19.3 18.3 7.4 2.6 2.4

JSW Steel 18.2 18.1 20.3 11.6 11.9 9.3 1.6 8.5 9.7 6.2 1.0 1.2

Just Dial 30.8 29.7 28.8 90.6 71.7 49.7 (0.9) 22.3 31.1 49.6 14.8 0.2

Kalpataru Power Transmission 9.6 9.8 11.3 10.0 18.6 13.4 0.3 8.9 14.3 9.2 1.6 1.1

Kansai Nerolac Paints 11.9 12.6 14.9 29.3 42.9 31.6 (0.1) 18.0 24.0 25.8 7.3 0.6

Karnataka Bank – – – 7.1 6.0 5.4 – 10.9 – – 0.8 3.8

Kaveri Seed 22.0 26.4 26.9 20.9 22.4 16.5 (0.5) 46.6 47.4 21.0 8.7 0.5

Kewal Kiran Clothing 25.4 23.6 24.0 21.2 39.5 36.0 (0.2) 21.7 30.9 26.4 8.2 1.1

Kirloskar Oil Engines 13.1 9.9 9.9 16.5 27.2 23.7 (0.7) 11.0 14.7 12.0 2.9 1.9


B&K RESEARCH

8

MAY 2015





KNR Construction 484 214 358 21.7 22.1 26.3 10.2 27.6 70.1 316.2

KPIT Technologies 103 318 5,624 14.0 12.3 9.4 (17.8) (52.3) (36.8) (36.3)

KPR Mill 599 355 676 37.2 45.7 64.7 32.0 27.2 100.7 344.1

Lakshmi Machine Works 3,574 633 366 170.2 175.8 209.3 10.9 (5.9) (12.4) 17.1

Maharashtra Seamless 212 223 290 14.2 19.1 15.1 3.2 (1.0) (33.8) (15.6)

Mahindra & Mahindra 1,227 11,973 21,658 60.4 49.0 55.9 (3.8) 2.9 (2.3) 13.1

Mahindra Finance 274 2,449 8,857 15.7 14.7 17.7 5.9 4.4 (14.1) 10.1

Mahindra Lifespace 465 300 213 24.6 64.9 36.0 20.8 (3.2) (10.0) 15.9

Marico 402 4,076 6,928 7.5 8.9 11.2 21.9 13.4 21.9 73.9

MM Forgings 689 131 402 24.2 43.1 53.1 48.1 7.0 34.3 373.2

Motherson Sumi 496 6,867 13,175 8.8 11.8 17.3 40.3 5.7 16.7 77.3

MphasiS 385 1,270 660 34.8 31.3 37.5 3.8 7.5 (4.3) (2.3)

MRPL 69 1,896 653 2.8 (6.1) 7.6 64.8 16.8 20.3 18.6

Nalco 49 2,002 1,027 2.7 5.0 5.5 42.5 1.6 (17.3) 16.5

Natco Pharma 2,127 1,110 4,697 31.1 36.0 131.2 105.5 51.6 53.5 179.7

Navin Fluorine International 815 125 259 53.7 55.9 69.7 14.0 16.7 39.6 106.8

NCC 102 890 10,318 1.6 2.0 2.6 27.1 24.0 66.0 146.7

NHPC 19 3,304 1,488 1.7 1.8 1.9 6.6 (9.1) (7.3) (8.0)

NIIT Technologies 373 358 699 37.8 18.9 43.7 7.5 0.4 (6.9) (4.8)

NMDC 133 8,281 5,477 16.1 16.0 12.7 (11.3) (6.6) (14.1) (16.5)

NRB Bearings 133 202 221 3.9 6.0 8.1 43.1 (8.4) (3.5) 100.5

Oil India 488 4,613 3,447 49.6 46.8 55.3 5.6 (2.3) (17.6) (11.3)

ONGC 316 42,492 25,668 31.0 23.2 26.3 (7.9) (6.9) (19.6) (14.1)

Oriental Bank of Commerce 213 1,002 8,911 38.0 25.9 35.9 (2.8) (12.7) (26.6) (25.8)

Praj Industries 59 165 818 3.1 2.8 3.6 8.7 (7.9) (19.9) 2.3

Prestige Estates Projects 265 1,563 1,728 9.0 11.3 14.9 28.9 (4.5) 5.3 45.5

Prism Cement 102 808 1,269 (1.9) (1.1) 3.5 – (0.7) 32.6 91.7

Punjab National Bank 151 4,388 18,639 18.7 16.7 19.1 1.1 (10.2) (19.8) (9.8)

Purvankara Projects 73 272 267 6.7 5.7 4.8 (15.3) (10.6) (25.0) (8.5)

Radico Khaitan 88 184 679 6.9 5.4 6.0 (7.2) 2.5 8.4 (13.6)

Rallis India 214 655 1,263 8.1 8.5 10.2 12.1 (10.1) (3.5) 15.3

Raymond 425 409 2,370 23.3 18.4 26.7 7.0 (16.5) (8.0) 36.6

Sadbhav Engineering 294 791 1,573 7.8 6.5 7.8 0.1 (8.3) 17.6 92.3

Shoppers Stop 367 481 444 (4.1) (5.6) 4.1 – (20.9) (26.9) 2.0

Shriram City Union Finance 1,788 1,851 1,281 87.9 84.7 108.1 10.9 (10.9) 4.3 29.5

Shriram Transport Finance 818 2,914 11,774 55.7 54.6 68.8 11.1 (35.1) (21.6) 1.7

Simplex Infrastructure 392 304 645 12.2 11.3 18.7 23.9 (3.2) 31.9 82.2

Sintex Industries 110 751 12,492 12.3 13.0 13.4 4.4 4.3 16.1 86.8

Siyaram Silk Mills 1,102 162 112 67.0 84.0 99.2 21.6 20.7 27.2 177.6

SJVN 24 1,573 388 2.7 2.8 3.2 9.2 (6.9) 1.7 5.0

SKF India 1,375 1,139 788 35.8 38.5 45.9 13.2 (0.7) 1.4 66.8

Snowman Logistics 82 214 2,155 1.8 1.5 1.9 3.5 (6.3) (23.9) n/a

Sobha 385 593 1,386 24.0 25.3 33.5 18.2 (15.2) (19.6) 0.0


B&K RESEARCH

9

MAY 2015






KNR Construction 15.1 14.9 16.3 3.9 19.3 18.4 0.1 11.4 10.2 9.9 2.1 0.2

KPIT Technologies 15.7 10.9 10.3 11.5 15.3 10.9 (0.1) 18.4 16.3 10.6 2.8 0.5

KPR Mill 17.8 17.0 19.3 3.3 10.4 9.3 0.8 19.6 16.5 5.8 1.9 1.9

Lakshmi Machine Works 11.8 13.1 13.9 17.9 21.8 17.1 (0.9) 16.8 20.4 11.2 3.5 1.0

Maharashtra Seamless 7.3 8.5 7.9 13.6 10.3 14.0 (0.1) 5.8 5.5 9.0 0.6 3.1

Mahindra & Mahindra 11.7 10.4 11.0 16.2 24.2 22.0 (0.2) 15.0 15.1 17.3 3.4 1.2

Mahindra Finance – – – 17.4 18.6 15.5 – 15.5 – – 2.7 1.5

Mahindra Lifespace 24.1 39.1 28.9 14.7 7.2 12.9 0.7 19.5 16.0 7.1 1.3 2.6

Marico 15.8 15.0 16.4 27.8 43.4 36.0 (0.1) 36.8 39.2 28.7 14.2 0.6

MM Forgings 19.2 22.5 22.3 4.9 15.7 13.0 0.4 22.7 12.4 8.0 3.2 0.7

Motherson Sumi 8.3 7.8 8.8 29.1 43.7 28.7 0.9 34.6 23.9 18.2 13.9 0.6

MphasiS 17.0 15.1 18.4 11.6 12.3 10.3 (0.6) 13.1 17.2 5.6 1.6 4.1

MRPL 1.4 (3.2) 6.1 17.0 (11.1) 9.0 2.0 (17.5) (9.4) (12.4) 2.3 0.0

Nalco 13.8 23.3 24.1 14.8 9.3 9.1 (0.4) 10.4 14.4 3.8 0.9 5.3

Natco Pharma 26.1 24.6 43.5 25.7 58.6 16.2 0.2 15.4 16.7 37.2 8.5 0.3

Navin Fluorine International 13.6 12.2 14.0 6.5 14.9 11.7 (0.0) 9.5 11.6 11.0 1.4 2.0

NCC 6.6 7.8 8.2 13.8 55.7 39.9 0.6 3.9 14.1 12.5 1.9 0.1

NHPC 58.3 61.0 57.1 11.2 11.0 9.8 0.5 6.9 7.8 7.5 0.7 2.4

NIIT Technologies 15.3 14.6 16.2 10.6 18.5 8.5 (0.3) 8.8 13.0 5.0 1.6 2.9

NMDC 64.5 64.2 56.6 8.7 8.1 10.5 (0.5) 20.3 30.6 4.4 1.6 6.3

NRB Bearings 17.6 19.3 19.6 13.1 21.9 16.4 0.9 23.6 19.4 11.5 5.0 2.7

Oil India 41.9 40.9 42.4 9.8 9.7 8.8 (0.1) 13.1 13.7 6.0 1.2 6.6

ONGC 33.0 33.1 37.3 10.3 13.2 12.0 0.2 11.2 11.1 5.7 1.4 2.8

Oriental Bank of Commerce – – – 5.9 8.6 6.2 – 5.6 – – 0.7 1.5

Praj Industries 8.0 6.9 8.8 17.1 22.0 16.3 (0.3) 8.5 8.6 13.4 1.8 2.1

Prestige Estates Projects 28.9 30.6 31.6 19.0 23.7 17.8 0.7 12.3 12.8 13.2 2.6 0.7

Prism Cement 3.6 6.2 9.2 (20.2) (87.8) 29.0 1.6 (5.4) 6.6 19.4 4.8 0.0

Punjab National Bank – – – 8.0 8.9 7.8 – 8.3 – – 1.1 2.2

Purvankara Projects 36.6 23.3 25.4 10.2 11.0 15.3 0.7 6.0 9.7 7.8 0.7 2.5

Radico Khaitan 14.8 12.5 12.2 21.0 16.7 14.8 1.0 8.5 10.5 10.6 1.4 0.9

Rallis India 15.6 15.5 16.5 21.3 26.9 20.9 0.1 21.5 26.8 16.0 5.4 1.1

Raymond 10.6 8.3 9.1 13.0 24.1 15.9 0.9 7.5 10.0 9.2 1.8 0.7

Sadbhav Engineering 10.6 10.3 10.8 12.5 50.9 37.6 0.8 10.6 9.6 22.2 4.5 0.2

Shoppers Stop 2.8 4.2 5.1 (94.2) (72.9) 90.0 1.3 (9.6) 5.8 22.7 7.1 0.2

Shriram City Union Finance – – – 20.3 21.1 16.5 – 15.8 – – 2.8 0.9

Shriram Transport Finance – – – 14.7 15.0 11.9 – 14.1 – – 2.0 1.2

Simplex Infrastructure 9.4 10.5 10.6 9.5 40.7 20.9 2.2 4.0 9.9 9.5 1.6 0.1

Sintex Industries 16.1 16.9 17.1 3.5 9.3 8.2 0.8 13.4 11.6 7.6 1.1 0.6

Siyaram Silk Mills 10.7 11.5 11.8 4.2 10.5 11.1 0.7 19.5 19.3 6.5 1.9 1.1

SJVN 85.6 84.4 81.3 7.8 8.8 7.5 0.0 11.9 16.0 4.1 1.0 4.0

SKF India 12.0 12.1 12.6 18.6 35.1 30.0 (0.4) 15.1 22.7 22.7 5.0 0.7

Snowman Logistics 24.8 23.2 27.2 0.0 57.2 42.1 0.0 7.7 6.2 30.2 3.4 0.0

Sobha 27.8 25.4 27.2 15.6 15.9 11.5 0.7 10.4 14.3 8.7 1.6 1.7


B&K RESEARCH

10

MAY 2015





South Indian Bank 24 514 2,203 3.8 2.0 2.8 (14.5) (8.5) (11.5) (1.4)

Speciality Restaurants 168 124 179 4.0 2.5 3.6 (5.2) (7.1) (11.0) 19.2

SRF 940 848 3,315 28.3 52.7 72.1 59.6 0.1 12.2 134.5

State Bank of India 281 33,394 82,415 15.2 16.6 19.4 13.0 (8.5) 0.8 23.1

Steel Authority of India 67 4,344 4,967 4.7 4.9 5.5 7.8 (10.9) (22.4) (10.7)

Sterlite Technologies 62 384 1,439 (0.9) 0.2 2.6 – (4.0) (14.3) 106.2

Sun Pharma 944 35,701 78,142 27.3 28.7 33.8 11.2 0.4 6.5 54.3

Sun TV Network 356 2,201 6,118 19.0 20.6 24.3 13.2 (18.8) 12.3 (4.2)

Suzlon Energy 24 1,447 21,370 (13.2) (8.3) 0.5 – 25.8 69.5 60.5

Syndicate Bank 111 1,154 4,394 27.9 23.7 25.6 (4.3) (5.9) (12.3) (3.3)

Tata Chemicals 443 1,774 3,469 18.0 34.8 41.4 51.5 (5.0) 4.3 44.5

Tech Mahindra 615 9,293 29,944 32.0 31.1 41.9 14.4 (14.7) (6.7) 34.0

Texmaco Rail & Engineering 124 408 3,658 0.9 1.2 5.4 141.2 (16.8) 12.5 69.0

The Ramco Cements 290 1,084 898 5.8 9.2 15.3 62.5 (11.2) (16.9) 22.1

Thermax 963 1,803 1,038 20.6 22.2 29.0 18.5 (20.1) (8.2) 19.0

Titagarh Wagons 97 152 8,649 (0.4) 3.0 6.7 – 7.8 63.8 154.5

TTK Prestige 3,932 719 1,335 89.9 90.3 106.2 8.7 15.0 4.9 24.6

TVS Motor 224 1,673 13,225 5.6 7.1 11.3 42.4 (27.2) (7.3) 93.7

UCO Bank 61 1,022 3,165 17.1 12.2 12.6 (14.1) (15.0) (31.1) (34.5)

UltraTech Cement 2,796 12,053 13,860 80.5 78.4 109.9 16.9 (10.2) 6.9 24.8

Union Bank of India 163 1,625 14,417 27.6 28.1 34.4 11.6 (10.4) (25.0) (3.4)

United Breweries 934 3,879 3,668 8.4 11.5 18.1 46.3 (7.6) 32.8 16.7

Vardhman Textiles 636 636 463 114.9 64.0 92.4 (10.3) 35.5 52.9 91.0

Voltamp Transformers 683 108 645 26.0 25.7 31.6 10.2 (4.0) 0.3 24.1

Voltas 282 1,464 10,435 6.8 4.2 12.5 35.6 9.9 3.7 58.5

Welspun Corp 88 365 384 2.8 2.6 10.3 92.2 38.2 19.2 10.1

Westlife Development 276 673 28 (0.3) (1.9) (0.5) 31.6 (6.6) (11.1) (25.5)

Yes Bank 839 5,508 47,471 45.0 51.5 60.5 16.0 0.4 21.7 60.6


B&K RESEARCH

11

MAY 2015






South Indian Bank – – – 5.9 11.4 8.0 – 7.4 – – 0.9 2.7

Speciality Restaurants 12.9 10.0 12.6 35.3 69.1 46.3 (0.3) 3.9 4.9 23.3 2.7 0.6

SRF 12.6 15.8 18.2 12.7 18.8 13.0 1.0 14.1 11.0 11.1 2.5 1.9

State Bank of India – – – 12.6 11.6 9.9 – 9.6 – – 1.4 1.8

Steel Authority of India 8.8 10.2 11.5 15.2 13.9 12.2 0.6 4.6 4.8 11.9 0.6 3.0

Sterlite Technologies 10.7 13.3 18.3 (25.7) 235.3 24.0 4.1 0.8 4.5 16.3 1.9 0.5

Sun Pharma 43.7 44.7 44.3 21.0 35.7 27.9 (0.4) 28.0 27.9 25.7 8.9 0.2

Sun TV Network 67.9 70.2 71.5 21.2 21.5 14.6 (0.3) 25.5 36.2 9.7 5.3 3.1

Suzlon Energy (1.6) 3.4 9.0 (0.8) (3.3) 53.7 (5.5) 154.3 1.6 28.2 (3.1) 0.0

Syndicate Bank – – – 3.4 4.1 3.8 – 12.2 – – 0.7 4.3

Tata Chemicals 11.4 13.2 13.9 15.9 12.7 10.7 0.9 15.1 12.0 7.7 1.8 2.3

Tech Mahindra 22.2 19.0 19.2 14.0 20.2 14.7 (0.7) 27.5 34.6 11.4 5.0 0.9

Texmaco Rail & Engineering 3.8 6.5 18.8 51.3 129.8 22.8 (0.4) 3.0 4.0 85.0 3.2 0.1

The Ramco Cements 15.3 19.3 22.6 37.2 33.3 19.0 1.0 8.6 7.2 13.9 2.8 1.0

Thermax 8.7 8.0 9.2 36.2 48.2 33.2 (0.1) 12.5 12.7 28.5 5.8 0.7

Titagarh Wagons 0.8 6.1 10.1 (57.9) 39.0 14.3 0.0 4.9 7.3 25.0 1.9 0.7

TTK Prestige 12.4 12.0 12.2 33.8 38.2 37.0 (0.1) 16.9 22.8 23.6 6.1 0.7

TVS Motor 6.1 6.0 7.4 17.4 37.0 19.8 0.3 24.5 22.6 21.1 8.5 0.6

UCO Bank – – – 4.3 6.0 5.8 – 10.3 – – 0.9 4.1

UltraTech Cement 17.8 17.2 20.6 27.2 36.7 25.4 0.2 11.7 12.1 20.2 4.0 0.4

Union Bank of India – – – 5.0 4.9 4.0 – 9.3 – – 0.6 4.4

United Breweries 13.9 14.5 16.5 97.7 86.9 51.7 0.5 16.5 17.2 39.5 13.4 0.1

Vardhman Textiles 23.7 16.5 19.1 3.0 8.5 6.9 0.5 12.3 11.0 4.6 1.0 1.8

Voltamp Transformers 3.4 4.5 5.1 18.6 24.9 21.6 (0.1) 6.0 8.0 26.6 1.5 1.7

Voltas 5.1 4.2 8.6 23.7 66.9 22.6 (0.4) 7.0 12.3 38.7 4.4 0.7

Welspun Corp 8.7 10.0 11.8 24.6 20.5 8.6 0.6 2.4 7.2 3.9 0.5 0.9

Westlife Development 5.0 2.0 4.5 (1,231.7) (154.9) (547.7) (0.0) (5.3) (2.9) 301.8 8.5 0.0

Yes Bank – – – 9.2 8.0 6.8 – 20.3 – – 1.5 2.3


B&K RESEARCH

12

MAY 2015


Valuation summary (Companies not under B&K Coverage)CMP Mkt Avg daily Absolute price

(Rs) Cap T/O-6m performance (%)

Sector/Company 14-May-15 (US$ mn) (US$ '000) 3M 6M 12M

Aarti Drugs 689 262 875 7.3 69.5 247.0

Ajanta Pharma 1,285 1,775 3,593 19.1 51.8 196.3

Amtek Auto 149 515 5,422 (10.5) (28.3) (18.6)

APL Apollo Tubes 427 157 251 19.7 25.7 95.3

Ashapura Intimates 247 75 244 43.7 73.8 87.1

Ashiana Housing 217 349 229 (15.0) 24.1 110.5

Astral Poly Technik 413 768 701 (7.6) 6.2 52.9

Atul Auto 441 152 2,708 (25.7) 15.3 141.0

Blue Dart Express 6,730 2,509 933 (1.0) 3.4 106.1

Camlin Fine Science 92 138 134 (2.8) 43.1 248.6

Can Fin Homes 697 291 1,253 13.0 53.8 214.0

Capital First 395 565 1,449 (3.3) 10.5 114.2

Century Plyboards 173 603 2,343 (17.1) 26.1 314.8

Cera Sanitaryware 2,135 436 599 (23.8) 24.9 87.5

City Union Bank 101 943 1,319 6.7 11.2 56.0

Dalmia Bharat 492 627 348 4.9 7.2 85.8

DEN Networks 137 384 636 14.1 (11.6) (25.0)

Easun Reyrolle 38 18 45 (24.3) (33.1) (45.1)

EPC Industries 135 59 113 (5.2) (20.0) 11.1

Essel Propack 133 328 466 10.6 6.4 77.8

Finolex Industries 264 515 667 (5.2) (7.4) 16.5

Gati 199 273 6,256 (21.6) (24.9) 136.0

GIC Housing Finance 216 183 1,087 (11.5) 15.7 75.5

Godrej Industries 364 1,921 2,136 11.0 22.1 24.2

Greenply 1,014 385 299 4.5 (9.4) 160.2

Gujarat Fluorochemicals 624 1,076 1,216 (16.7) (17.2) 84.6

Indag Rubber 169 70 95 (3.4) 6.3 156.0

Indiabulls Housing Finance 561 3,131 12,537 (8.2) 22.7 78.3

Insecticides India 488 146 435 (5.5) (15.0) 161.3

Intellect Design Arena 111 175 n/a 3.5 n/a n/a

Jain Irrigation 57 400 4,420 (12.0) (30.2) (36.7)

Jyothy Laboratories 238 678 769 (20.5) 0.3 19.3

Kolte-Patil Developers 208 247 669 1.1 (1.0) 98.1

Kotak Mahindra Bank 1,327 19,000 27,183 1.3 21.3 54.4

KRBL 167 619 660 28.5 68.0 173.9


B&K RESEARCH

13

MAY 2015





Kridhan Infra 89 86 240 0.2 38.1 65.0

L&T Finance Holdings 64 1,725 4,486 (4.7) (13.7) (4.4)

Lakshmi Vilas Bank 105 295 2,054 4.1 18.6 56.9

Lovable Lingerie 291 77 1,018 (22.9) (28.9) (11.0)

Lycos Internet 34 257 572 (0.3) (37.1) 112.6

Mahindra CIE 212 1,074 2,051 (7.2) (6.2) 94.4

Manappuram Finance 35 458 1,032 (2.7) 2.5 44.4

Mandhana Industries 244 127 261 (11.0) (20.1) 6.2

Marico Kaya 1,591 322 4,216 8.7 115.8 n/a

Mastek 394 140 5,600 (0.7) 40.4 136.9

Maxwell Industries 60 60 945 37.1 63.8 215.2

Mayur Uniquoters 420 286 484 (9.2) (0.6) 31.3

MBL Infrastructure 559 182 324 31.1 57.7 212.3

Monte Carlo Fashion 574 196 n/a 9.9 n/a n/a

MT Educare 102 64 182 (5.9) (24.9) 9.7

Navneet Education 93 348 244 (13.1) (5.1) 52.0

NBCC 769 1,450 10,744 5.0 (0.7) 207.6

Nelcast 39 53 40 1.8 2.5 89.8

Neuland Laboratories 355 50 199 6.9 (19.5) 25.7

Nitesh Estates 16 36 87 50.2 19.2 26.3

Omkar Speciality 159 51 442 (3.6) 0.1 36.7

Ortel Communications 169 81 n/a n/a n/a n/a

PC Jewellers 326 916 2,258 38.7 29.6 243.6

Pennar Industries 51 96 700 (11.4) (14.7) 90.8

Persistent Systems 726 912 2,554 (12.8) 12.5 46.5

Pokarna 742 72 192 (0.8) 55.3 517.4

Pricol 36 54 272 (7.4) (23.4) 9.1

Prozone Capital 33 78 156 (3.3) 68.2 95.5

PTC India Financial Services 54 479 2,202 (7.7) 4.8 179.2

Rain Industries 41 215 681 6.7 (17.8) 24.8

Ramco Systems 613 284 379 9.4 45.4 273.7

Ratnamani Metals & Tubes 668 490 311 (6.9) 10.6 133.6

Redington 114 716 3,465 (5.6) 11.0 31.1

Repco Home Finance 611 599 1,552 (12.1) 11.5 53.3

Sagar Cement 346 95 48 1.7 5.0 87.4


B&K RESEARCH

14

MAY 2015





Sarla Performance Fibers 418 55 55 7.4 (3.7) 98.1

Setco Automotive 244 102 109 2.2 23.1 159.0

Shakti Pumps 204 54 392 (8.2) (19.0) 104.4

Shalimar Paints 138 41 283 2.3 (11.2) 71.3

Sharda Cropchem 349 495 1,192 32.3 18.7 n/a

Shemaroo Entertainment 216 92 429 (0.6) 30.8 n/a

Shreyas Shipping 461 159 263 2.9 316.9 1,598.2

Skipper 154 248 66 10.7 51.1 n/a

Solar Industries 3,414 971 332 12.0 35.1 180.0

Star & Ferro Cement 149 521 357 42.9 89.6 522.1

Sun Pharma Advanced Research Company 386 1,434 16,408 (0.3) 102.0 143.1

Sundaram Clayton 1,912 608 85 4.1 21.4 156.2

Suprajit Engineering 122 230 200 (7.4) 0.6 64.3

Sutlej Textiles & Industries 357 92 47 8.2 4.4 38.9

Symphony 2,218 1,219 1,677 0.6 9.0 172.7

Take Solutions 106 203 2,654 (13.5) 163.1 241.1

Talbros Automotive Components 129 25 175 12.7 21.4 152.3

TD Power Systems 318 166 478 (20.4) (27.5) 11.2

Techno Electric & Engineering 402 360 509 (6.8) 28.0 115.2

Transformers & Rectifiers (India) 263 59 141 37.5 56.1 75.0

Trident 23 186 101 (1.9) (26.8) 24.7

United Bank of India 26 341 334 (32.4) (40.1) (28.9)

VA Tech Wabag 657 561 1,733 (19.0) (17.6) 48.8

Vinati Organics 585 474 344 11.0 38.4 116.8

VST Trillers 1,430 194 231 (5.0) (1.6) 40.0

Welspun India 551 869 1,054 52.8 40.6 327.3


B&K RESEARCH

15

MAY 2015


Companies


B&K RESEARCH

16

MAY 2015


Aarti DrugsScaling up efficiently...

Company profile

Aarti Drugs (part of Aarti Group), is a mid-sized pharma company with revenues of

Rs 10 bn. It has positioned itself as an efficient API producer and has been able to

scale-up its operations significantly in the past two years. It is one of the largest

producer globally for Antibiotics (Quinolones), Anti-Protozoals (Metronidazole,

Tinidazole), Anti-inflammatory (Celecoxib, Aceclofenac, Nimesulide). In FY12, Aarti

Drugs made full year PAT of Rs 225 mn, while for December 2014 quarter (3QFY15),

its quarterly PAT crossed Rs 227 mn. While Aarti Drugs is not directly comparable to

Divi’s, it has good plans to scale-up its operations for the next three-five years.

Key strengths

• Positioned as a preferred vendor for key bulk drugs for India and export markets.

Caters to all key local players like Abbott, Cipla, Sun, Alembic, Cadila and Torrent.

• Strong manufacturing infrastructure of 10 facilities located at MIDC (Tarapur)

and Sarigam (Valsad, Gujarat). Most of its units conform to global regulatory

requirements (except one unit where FDA issued an Import Alert in April 2015,

US revenue < 2% of total revenue).

• Has successfully developed about 30 new API’s in its labs and is process of

expanding capacities to support long term growth across markets.

Key challenges

• Delay in approvals, USFDA compliance risk – delay in resolution of import alert.

Potential triggers to watch

• One of the units which received Import Alert has good filings for US markets

(Celecoxib, Niacin, Metformin). Quick resolution would result in better earnings.

• Aarti has ventured into formulations through acquisition of a facility in Baddi.

Successful commercialisation would further enhance its capability and performance.

Relative performance

MID CAP

Share Data

Price (Rs) 689

BSE Sensex 27,206

Reuters code ADRG.BO

Bloomberg code ARTD IN

Market cap. (US$ mn) 262

6M avg. daily turnover (US$ mn) 0.8

Issued shares (mn) 24

Performance (%) 1M 3M 12M

Absolute (15) 7 247

Relative (9) 15 204

Valuation ratios

Yr to 31 Mar FY13 FY14

EPS (Rs) 18.7 25.5

+/- (%) 101.4 36.4

PER (x) 36.9 27.0

PBV (x) 8.0 6.7

Dividend/Yield (%) 0.7 0.9

EV/Sales (x) 2.4 2.1

EV/EBITDA (x) 16.5 14.0

Major shareholders (%)

Promoters 60

MFs 2

Public & Others 38

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Aarti Drugs (Actual)Sensex

Quarterly performance (Standalone) (Rs mn)

Y/E March Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 FY13 FY14

Sales 2,218 2,818 2,596 2,859 2,596 8,857 10,443

Change (%) 11.7 28.0 18.8 15.4 17.1 25.1 17.6

EBITDA 375 427 399 424 438 1,203 1,464

As % of sales 16.9 15.1 15.3 14.8 16.8 13.6 14.0

Reported PAT 142 220 172 188 228 452 617

Adjusted PAT 142 220 172 188 228 452 617

Change (%) 29.3 54.0 45.6 36.3 60.6 101.4 36.4

Rohit Bhat Dhaval Sangoi Amit [email protected] [email protected] [email protected]


B&K RESEARCH

17

MAY 2015


Balance Sheet

Period end (Rs mn) Mar 11 Mar 12 Mar 13 Mar 14

Share capital 121 121 121 121

Reserves & surplus 1,444 1,644 1,955 2,388

Shareholders' funds 1,565 1,765 2,076 2,509

Non-current liabilities 1,042 991 1,211 1,192

Long-term borrowings 743 669 807 766

Other non-current liabilities 299 322 404 425

Current liabilities 2,552 3,370 3,910 4,797

ST borrowings, Curr maturity 1,472 2,056 2,150 2,656

Other current liabilities 1,079 1,315 1,760 2,141

Total (Equity and Liab.) 5,159 6,126 7,197 8,497

Non-current assets 2,678 2,857 3,115 3,925

Fixed assets (Net block) 2,346 2,765 3,038 3,808

Non-current Investments 246 69 51 46

Long-term loans and adv. 86 23 26 70

Current assets 2,481 3,269 4,082 4,572

Cash & current investment 36 49 29 44

Other current assets 2,445 3,220 4,053 4,528

Total (Assets) 5,159 6,126 7,197 8,497

Total debt 2,216 2,979 3,205 3,787

Capital employed 4,080 5,066 5,685 6,721

Income Statement


Net sales 5,230 6,992 8,857 10,443

Growth (%) 5.3 32.8 25.1 17.6

Operating expenses (4,338) (5,821) (7,054) (8,254)

Operating profit 626 772 1,194 1,445

Other operating income 1 31 9 18

EBITDA 627 803 1,203 1,464

Growth (%) (15.3) 28.0 49.9 21.6

Depreciation (177) (242) (260) (281)

EBIT 450 561 944 1,183

Finance cost (135) (227) (280) (335)

Profit before tax 315 322 659 857

Tax (current + deferred) (90) (98) (206) (240)

P/(L) for the period 225 225 452 617

Reported Profit/(Loss) 225 225 452 617

Adjusted net profit 225 225 452 617

Growth (%) (13.9) (0.1) 101.4 36.4

Aarti Drugs

Cash Flow Statement


Profit before tax 315 322 659 857

Depreciation 177 242 260 281

Change in working capital (186) (730) (357) (284)

Total tax paid (65) (76) (176) (205)

Others 135 227 280 335

Cash flow from oper. (a) 376 (15) 666 984Capital expenditure (654) (662) (533) (1,051)

Change in investments (32) 177 18 5

Cash flow from inv. (b) (686) (485) (515) (1,046)Free cash flow (a+b) (310) (500) 152 (62)Debt raised/(repaid) 439 763 226 582

Dividend (incl. tax) (70) (70) (141) (184)

Others (59) (180) (257) (320)

Cash flow from fin. (c) 310 513 (172) 77Net chg in cash (a+b+c) (1) 14 (21) 15

Valuations

Period end (x) Mar 11 Mar 12 Mar 13 Mar 14

PER 74.2 74.3 36.9 27.0PCE 41.5 35.7 23.4 18.6Price/Book 10.7 9.5 8.0 6.7Yield (%) 0.4 0.4 0.7 0.9EV/EBITDA 30.1 24.4 16.5 14.0

Key Ratios

Period end (%) Mar 11 Mar 12 Mar 13 Mar 14

Adjusted EPS (Rs) 9.3 9.3 18.7 25.5

Growth (13.9) (0.1) 101.4 36.4

CEPS (Rs) 16.6 19.3 29.4 37.1

Book NAV/share (Rs) 64.6 72.9 85.7 103.6

Dividend/share (Rs) 2.5 2.5 5.0 6.5

Dividend payout ratio 31.4 31.3 31.2 29.8

EBITDA margin 12.0 11.4 13.6 14.0

EBIT margin 9.1 8.5 11.4 12.2

Tax rate 28.6 30.3 31.3 28.0

RoCE 12.0 12.3 17.6 19.1

Total debt/Equity (x) 1.4 1.7 1.5 1.5

Net debt/Equity (x) 1.4 1.7 1.5 1.5

Du Pont Analysis - ROENet margin 4.5 3.4 5.5 6.4

Asset turnover (x) 1.1 1.2 1.2 1.2

Leverage factor (x) 3.1 3.4 3.5 3.4

Return on equity 15.1 13.5 23.6 26.9


B&K RESEARCH

18

MAY 2015


Aarti IndustriesCreating value out of niche benzene derivatives!!!

Company profile

Aarti Industries (ARTO) is a niche chemical company manufacturing benzene-based

intermediates that find application in various agrochemicals, pharma, dyes and polymer

products. It ranks in the top 1-5 suppliers for most of its products and enjoys the

status of being a strategic supplier. The company is been run by first generation

entrepreneurs who are qualified chemical engineers. Significant portion of ARTO’s

production capabilities are process driven and therefore provide flexibility to change

product mix based on market dynamics.

Key strengths

• ARTO is the largest manufacturer of NCB in India and ranks 3rd globally. The

company enjoys flexibility to change its product mix according to prevailing market

conditions, thereby optimizing its profitability.

Key challenges

• Currency volatility, stringent environment compliance and strong comeback by

Chinese competitors remains a key challenge.


• The company is expanding its capacities across NCB from 66,000 MT to 75,000

MT and PDA capacity from 250 tpm to 1,000 tpm to cater higher demand from

polymers specialty pigments and agrochemicals.

• The management remains confident of delivering volume growth of 15-20% and

profits growth of 20-24% CAGR over the next three-four years on the back of

margin expansion and volume growth across all its segments.


MID CAP

Share Data

Price (Rs) 318

BSE Sensex 27,206

Reuters code ARTI.BO

Bloomberg code ARTO IN

Market cap. (US$ mn) 442




Absolute (14) 8 116

Relative (8) 15 89

Valuation ratios (Consolidated)

Yr to 31 Mar FY15P FY16E FY 17E

EPS (Rs) 22.8 29.1 34.9

+/- (%) 24.6 27.2 20.0

PER (x) 15.4 10.9 9.1

PBV (x) 3.1 2.2 1.9

Dividend/Yield (%) 1.6 2.2 2.2

EV/Sales (x) 1.5 1.2 1.0

EV/EBITDA (x) 9.1 7.0 5.9


Promoters 59

FIIs 1

MFs 12

Public & Others 28

Ranjit Cirumalla Miloni [email protected] [email protected]

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Aarti Indus tries(Actual)Sensex

Quarterly performance (Rs mn)

Standalone Consolidated

Y/E March Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 FY15 FY16E

Sales 7,355 7,250 7,503 6,813 6,675 28,614 32,868

YoY (%) 25.9 23.8 17.6 6.5 (9.2) 10.1 14.9

EBITDA 1,056 1,130 1,220 1,030 1,185 4,657 5,452

As % of sales 14.2 15.3 16.0 14.9 17.5 16.0 16.3

Reported PAT 468 414 507 429 528 2,059 2,424

Adjusted PAT 468 414 507 429 493 2,024 2,424

YoY (%) 21.5 83.9 19.8 16.0 5.2 24.6 19.8


B&K RESEARCH

19

MAY 2015


Balance Sheet (Consolidated)

Period end (Rs mn) Mar 14 Mar 15P Mar 16E Mar 17E

Share Capital 443 443 417 417Reserves & surplus 8,265 9,721 11,483 13,729Shareholders' funds 8,708 10,164 11,900 14,146Minority Int, Share Appl, 43 59 59 59Pref CapitalNon-Current Liabilities 6,078 8,278 8,278 8,278Long-term borrowings 2,553 4,191 3,991 3,791Other Long term liab, Prov, DTL 3,526 4,087 4,287 4,487Current liabilities 11,873 10,878 11,762 12,215Short-term borrowings, 7,837 7,452 7,452 6,952Curr MaturityOther Current Liab + Provi 4,036 3,426 4,310 5,263Total (Equity and Liab.) 26,701 29,378 31,998 34,697Non-current assets 14,453 17,402 19,238 20,114Fixed assets (Net block) 9,437 11,599 12,780 12,887Non-current Investments 1,172 1,392 1,392 1,392Long-term loans and adv. 3,844 4,411 5,066 5,835Current assets 12,248 11,977 12,760 14,583Cash & Current Investment 149 337 21 636Other current assets 12,100 11,639 12,739 13,947Total (Assets) 26,701 29,378 31,998 34,697Total Debt 10,389 11,642 11,442 10,742Capital Employed 22,665 25,952 27,688 29,434

Income Statement (Consolidated)

Period end (Rs mn) Mar 14 Mar 15 Mar 16E Mar 17E

Net Sales 25,984 28,614 32,868 37,856Growth (%) 26.3 10.1 14.9 15.2Operating expenses (22,310) (24,423) (27,915) (32,147)Operating profit 3,674 4,192 4,953 5,709Other operating income 341 465 500 537EBITDA 4,015 4,657 5,452 6,247Growth (%) 11.1 16.0 17.1 14.6Depreciation (885) (820) (899) (983)Other income 110 55 50 50EBIT 3,239 3,892 4,603 5,313Finance Cost (1,178) (1,380) (1,490) (1,525)Exceptional & Extraordinary 0 35 0 0Profit before tax 2,061 2,548 3,113 3,788Tax (current + deferred) (540) (610) (794) (985)P/(L) for the period 1,521 1,937 2,319 2,803P/L of Associates, 104 122 105 105Min Int, Pref DivReported Profit/(Loss) 1,624 2,059 2,424 2,908Adjusted Net profit 1,624 2,024 2,424 2,908Growth (%) 20.9 24.6 19.8 20.0

Aarti Industries

Cash Flow Statement (Consolidated)


Profit before Tax 2,061 2,548 3,113 3,788Depreciation 885 820 899 983Change in working capital (774) (1,005) (773) (824)Total tax paid (402) (430) (794) (985)Others 784 764 822 700Cash flow from oper. (a) 2,844 3,312 3,935 4,488Capital expenditure (3,097) (2,638) (2,080) (1,090)Change in investments (144) (220) 0 0Others 9 0 0 0Cash flow from inv. (b) (3,233) (2,857) (2,080) (1,090)Free cash flow (a+b) (388) 454 1,855 3,398Equity raised/(repaid) 0 0 (26) 0Debt raised/(repaid) 1,900 1,253 (200) (700)Dividend (incl. tax) (501) (163) (560) (662)Others (986) (1,355) (1,385) (1,420)Cash flow from fin. (c) 412 (266) (2,171) (2,782)Net chg in cash (a+b+c) 24 189 (316) 615

Valuations (Consolidated)

Period end (x) Mar 14 Mar 15P Mar 16E Mar 17E


Key Ratios (Consolidated)

Period end (%) Mar 14 Mar 15P Mar 16E Mar 17E

Adjusted EPS (Rs) 18.3 22.8 29.1 34.9Growth 20.9 24.6 27.2 20.0CEPS (Rs) 28.3 32.1 39.9 46.7Book NAV/share (Rs) 98.3 114.7 142.7 169.6Dividend/share (Rs) 4.8 5.5 6.9 6.9Dividend payout ratio 30.6 27.2 27.3 22.8EBITDA margin 15.3 16.0 16.3 16.5EBIT margin 12.3 13.4 13.8 14.0Tax Rate 26.2 25.3 25.5 26.0RoCE 15.5 16.0 17.2 18.6Total debt/Equity (x) 1.2 1.1 1.0 0.8Net debt/Equity (x) 1.2 1.1 1.0 0.7Du Pont Analysis - ROENet margin 6.3 7.1 7.4 7.7Asset turnover (x) 1.1 1.0 1.1 1.1Leverage factor (x) 3.0 3.0 2.8 2.6Return on equity 20.0 21.5 22.0 22.3


B&K RESEARCH

20

MAY 2015


ACCMarathon player!!

Company profile

ACC Ltd. established in 1936 and part of Holcim group is one of the oldest cement

players of India. ACC having cement capacity of ~31 mn tonnes and pan-India

presence with 17 cement and more than 50 ready mix concrete plants is the second

largest player in India. It has diversified presence with capacity share well spread in

different regions- south ~34% followed by east ~20%, north ~19%, central ~15%

and west ~12%.

Key strengths

• Pan-India presence with premium pricing: Having all India presence

insulates ACC from any region specific risk. Well diversified market mix gives it an

edge on other players to maintain its performance. Apart from that it is a well

established brand in the market and sells its product at a premium which helps to

maintain healthy realisation.

• Robust balance sheet and cost optimisation: ACC has one of the strongest

balance sheets (net cash of ~Rs 25 bn) which will support future growth primarily

funded through internal accruals. Recent moderation in cost structure led by

different cost reduction initiatives such as clinker substitution, alternative fuels,

setting up of waste heat recovery plants and synergy post merger with Ambuja

would help the company to improve its operational efficiency.

Key challenge

• ACC has a capacity share of 34% in southern region which is not favourable in

terms of demand-supply matrix. Hence, weak discipline would lead to decline in

prices which would negatively impact its profitability.

Potential trigger to watch

• Operational synergy, incremental capex and clarity on structure post merger of

Lafarge and Holcim.


LARGE CAP

Share Data

Price (Rs) 1,475

BSE Sensex 27,206

Reuters code ACC.BO

Bloomberg code ACC IN

Market cap. (US$ mn) 4,344




Absolute (8) (9) 6

Relative (1) (3) (7)

Valuation ratios

Yr to 31 Dec CY15E CY16E

EPS (Rs) 64.9 74.2

+/- (%) 43.2 14.3

PER (x) 22.7 19.9



EV/EBITDA (x) 12.1 10.1


Promoters 50

FIIs 16

MFs 5

BFSI's 11

Public & Others 18

Amit Srivastava Saurabh [email protected] [email protected]


Y/E March Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 CY14 CY15E

Sales 29,671 30,090 27,419 27,631 28,854 114,803 130,856

QoQ change (%) 10.2 1.4 (8.9) 0.8 4.4 5.2 14.0

EBITDA 4,247 4,506 3,786 2,535 4,686 15,133 20,585

As % of sales 14.3 15.0 13.8 9.2 16.2 13.2 15.7

Reported PAT 3,988 2,410 2,049 3,236 2,406 11,618 12,207

Adjusted PAT 2,860 2,410 2,049 1,272 2,540 8,526 12,207

QoQ change (%) 44.4 (15.7) (15.0) (37.9) 99.7 (2.9) 43.2

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ACC (Actual)Sensex


B&K RESEARCH

21

MAY 2015


Balance Sheet

Period end (Rs mn) Dec 13 Dec 14 Dec 15E Dec 16E

Share capital 1,880 1,880 1,880 1,880



Minority Interest and others 27 26 27 28

Non-current liabilities 10,087 10,267 10,447 10,627

Other non-current liab. 10,087 10,267 10,447 10,627


ST borrowings, Curr maturity 350 350 350 350


Total (Equity and Liab.)121,011 126,012 132,008 138,900




Long-term loans and adv. 8,800 9,800 11,300 12,800

Other non-current assets 3,082 3,232 3,332 3,432

Current assets 44,240 46,090 51,770 55,355

Cash & current investment 25,446 25,349 27,644 27,525


Total (Assets) 121,011 126,012 132,008 138,900

Total debt 350 350 350 350


Income Statement


Net sales 109,084 114,803 130,856 149,182

Growth (%) (2.0) 5.2 14.0 14.0


Operating profit 13,690 12,548 18,159 22,357

Other operating income 2,610 2,585 2,426 2,479

EBITDA 16,300 15,133 20,585 24,836

Growth (%) (25.8) (7.2) 36.0 20.7

Depreciation (5,838) (5,676) (6,285) (7,292)

Other income 2,191 2,566 2,413 2,320

EBIT 12,653 12,023 16,713 19,863

Finance cost (517) (828) (570) (627)

Profit before tax 12,136 11,195 16,143 19,236

Tax (current + deferred) (1,319) 311 (4,063) (5,416)

Profit/(Loss) for the period 10,817 11,507 12,081 13,820

P/L of Associates, 129 112 126 126Min Int, Pref Div

Reported Profit/(Loss) 10,947 11,618 12,207 13,946

Adjusted net profit 8,779 8,526 12,207 13,946Growth (%) (38.2) (2.9) 43.2 14.3

ACC

Cash Flow Statement


Profit before tax 12,136 11,195 16,143 19,236Depreciation 5,838 5,676 6,285 7,292Change in working capital (1,295) (1,323) (2,511) (2,572)Total tax paid (3,757) 411 (3,963) (5,316)Others 517 828 570 627Cash flow from oper. (a) 13,439 16,787 16,524 19,268Capital expenditure (9,377) (8,678) (6,500) (10,500)Change in investments 3,531 (2,000) (2,000) (2,000)Others (1,424) (150) (100) (100)Cash flow from inv. (b) (7,270) (10,828) (8,600) (12,600)Free cash flow (a+b) 6,169 5,959 7,924 6,668Equity raised/(repaid) 2 0 0 0Debt raised/(repaid) (1,280) 0 0 0Dividend (incl. tax) (6,562) (4,173) (7,037) (8,136)Others (79) (3,883) (593) (650)Cash flow from fin. (c) (7,919) (8,057) (7,630) (8,786)Net chg in cash (a+b+c) (1,750) (2,097) 295 (2,118)

Valuations

Period end (x) Dec 13 Dec 14 Dec 15E Dec 16E


Key Ratios

Period end (%) Dec 13 Dec 14 Dec 15E Dec 16E

Adjusted EPS (Rs) 46.7 45.4 64.9 74.2

Growth (38.2) (2.9) 43.2 14.3

CEPS (Rs) 77.8 75.6 98.4 113.0

Book NAV/share (Rs) 415.9 422.7 443.0 472.6

Dividend/share (Rs) 30.0 32.0 37.0 37.0

Dividend payout ratio 60.2 60.6 66.7 58.3

EBITDA margin 14.9 13.2 15.7 16.6

EBIT margin 11.6 10.5 12.8 13.3

Tax rate 28.7 24.8 25.2 28.2

RoCE 14.5 13.5 18.1 20.5

Net debt/Equity (x) (0.3) (0.3) (0.3) (0.3)

Du Pont Analysis - ROENet margin 8.0 7.4 9.3 9.3

Asset turnover (x) 0.9 0.9 1.0 1.1

Leverage factor (x) 1.6 1.6 1.6 1.6

Return on equity 11.6 10.8 15.0 16.2


B&K RESEARCH

22

MAY 2015



Y/E March Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 FY15 FY16E

Revenue 19,671 19,725 25,270 23,675 20,713 89,383 105,526

YoY change (%) (18.7) 16.0 18.5 6.6 5.3 11.4 18.1

EBITDA 2,043 1,703 3,490 2,645 2,300 10,141 13,108

EBITDA margin (%) 10.4 8.6 13.8 11.2 11.1 11.3 12.4

Adjusted PAT 982 690 2,630 1,118 839 5,277 7,807

Adjusted PAT margin (%) 5.0 3.5 10.4 4.7 4.1 5.9 7.4

Adjusted EPS (Rs) 7.6 5.3 20.2 8.6 6.4 40.5 60.0

Aditya Birla NuvoFostering businesses; unlocking shareholder value...

Company profile

Aditya Birla Nuvo Ltd. (ABNL) is part of the Aditya Birla Group, which counts itself

as one of the largest Indian multinational diversified conglomerate. It has businesses

in both manufacturing as well as service sector under its fold. It has presence in

Fashion & Lifestyle, Manufacturing, Telecom and Financial Services.

Key strengths

• Strong market positioning across manufacturing segments in domestic market –

2nd largest producer of VFY, largest manufacturer of Insulators (world’s 4th

largest) and linen fabric and is among the best energy efficient fertiliser plants.

• Aditya Birla Financial Services is one of the largest players in the financial services

space having presence in non-banking finance, asset management, life insurance,

retail broking, private equity, etc. It ranks in the top 5 fund managers in India (excl.

LIC). It has a nation-wide presence through ~1,600 branches.

• Idea, ABNL’s telecom investment, is the 3rd largest operator in India and has been

an outperformer in the industry with constant increase in market share.

• Madura Garments, the largest branded apparel player in India with strong portfolio

of brands like Louis Philippe, Van Heusen, Peter England and Allen Solly. Recently,

the company merged Madura with Pantaloons Fashion Retail making the combined

entity the largest player in India’s fashion retail space.

Key challenges

• Lack of pickup in macroeconomic scenario in India.

• High competition in the telecom industry.

• Growing the loan book without increasing the risks of NPAs.


• 1). Bancassurance channel roll out. 2). Pricing rationality in the telecom industry.


LARGE CAP

Share Data

Price (Rs) 1,868

BSE Sensex 27,206

Reuters code ABRL.BO

Bloomberg code ABNL IN





Absolute 5 2 62

Relative 12 9 42

Valuation ratios (Standalone)

Yr to 31 Mar FY16E FY17E

EPS (Rs) 60.0 70.8

+/- (%) 47.9 18.0

P / E (x) 31.1 26.4

P / B (x) 2.7 2.5

Dividend Yield (%) 0.5 0.6

EV / Sales (x) 2.6 2.3

EV / EBITDA (x) 21.3 18.4


Promoters 57

FIIs 18

MFs 4

BFSI's 7

Public & Others 14

Resham Jain, CFA Aasim [email protected] [email protected]

0500

1,0001,5002,0002,5003,000

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Aditya Birla Nuvo(Actual)Sensex


B&K RESEARCH

23

MAY 2015


Balance Sheet (Standalone)


Share Capital 1,302 1,301 1,301 1,301

Reserves & Surplus 79,776 83,889 90,334 97,729

Shareholders' Funds 81,077 85,190 91,636 99,030

Non-Current Liabilities 15,821 17,079 18,372 18,372

Long-Term Borrowings 13,922 14,805 15,347 15,347

Other Non-Current Liab. 1,899 2,275 3,025 3,025

Current Liabilities 43,015 44,228 47,641 53,211

ST Borrowings, 23,612 22,078 21,134 21,500Current Maturity

Other Current Liabilities 19,403 22,150 26,507 31,711


Non-Current Assets 99,938 106,173 116,279 122,990

Fixed Assets (Net Block) 18,483 18,676 22,720 23,431

Non-Current Investments 79,523 85,523 91,523 97,523

Long-Term Loans and Adv. 1,924 1,966 2,028 2,028

Other Non-Current Assets 8 7 7 7

Current Assets 39,976 40,325 41,370 47,623

Cash & Current Inv. 548 2,177 859 2,143

Other Current Assets 39,428 38,148 40,510 45,480

Total (Assets) 139,914 146,498 157,648 170,613

Total Debt 37,534 36,882 36,481 36,847

Capital Employed 120,511 124,347 131,141 138,902

Income Statement (Standalone)

Period end (Rs mn) Mar 14 Mar 15 Mar 16E Mar 17E

Net Sales 80,206 89,383 105,526 120,932

Growth (%) (17.8) 11.4 18.1 14.6

Operating Expenses (71,460) (79,242) (92,417) (105,833)

Operating Profit 8,746 10,141 13,108 15,099

EBITDA 8,746 10,141 13,108 15,099

Growth (%) (3.5) 15.9 29.3 15.2

Depreciation (1,990) (1,894) (2,169) (2,289)

Other Income 3,712 1,715 2,000 2,000

EBIT 10,468 9,962 12,940 14,810

Finance Cost (2,666) (2,633) (2,531) (2,530)

Exceptional & Extraordinary 241 0 0 0

Profit Before Tax 8,043 7,329 10,409 12,281

Tax (Current + Deferred) (1,303) (2,052) (2,602) (3,070)

P/(L) For The Period 6,739 5,277 7,807 9,211


Adjusted Net Profit 6,499 5,277 7,807 9,211

Growth (%) 53.6 (18.8) 47.9 18.0

Aditya Birla Nuvo

Cash Flow Statement (Standalone)


Profit Before Tax 8,043 7,329 10,409 12,281Depreciation 1,990 1,894 2,169 2,289Change in Working Capital 4,721 4,247 1,630 (220)Total Tax Paid (1,703) (1,618) (2,602) (3,070)Others (564) 2,633 381 380Operating Cash Flow (a) 12,487 14,486 11,987 11,660Capital Expenditure 1,349 (2,587) (6,213) (3,000)Change in Investments (18,233) (6,144) (5,850) (5,850)Others 3,131 0 2,000 2,000Investing Cash Flow (b) (13,754) (8,730) (10,063) (6,850)Free Cash Flow (a+b) (1,266) 5,756 1,924 4,810Equity Raised/(Repaid) 6,691 (0) 0 0Debt Raised/(Repaid) (2,298) (651) (401) 366Dividend (incl. Tax) (908) (1,059) (1,059) (1,361)Others (2,382) (2,560) (1,781) (2,531)Financing Cash Flow (c) 1,103 (4,271) (3,241) (3,526)Net Chg in Cash (a+b+c) (164) 1,485 (1,317) 1,283

Valuations (Standalone)

Period end (x) Mar 14 Mar 15P Mar 16E Mar 17E


Key Ratios (Standalone)

Period end (%) Mar 14 Mar 15P Mar 16E Mar 17E

Adjusted EPS (Rs) 49.9 40.5 60.0 70.8Growth 41.9 (18.8) 47.9 18.0CEPS (Rs) 65.2 55.1 76.6 88.4Book Value / Share (Rs) 622.8 654.6 704.1 761.0Dividend / Share (Rs) 7.0 7.0 9.0 12.0Dividend Payout Ratio 15.7 20.1 17.4 19.7EBITDA Margin 10.9 11.3 12.4 12.5EBIT Margin 13.1 11.1 12.3 12.2Tax Rate 19.2 28.0 25.0 25.0RoCE 9.0 8.1 10.1 11.0Net Debt / Equity (x) 0.5 0.4 0.4 0.4Net Debt / EBITDA (x) 4.2 3.4 2.7 2.3Du Pont Analysis - ROENet Profit Margin 8.1 5.9 7.4 7.6Asset Turnover (x) 0.6 0.6 0.7 0.7Leverage Factor (x) 1.8 1.7 1.7 1.7Return on Equity 8.8 6.3 8.8 9.7


B&K RESEARCH

24

MAY 2015


AIA EngineeringGrowth in mining grinding media will play major role

Company profile

AIA Engineering Limited (AIAE) is engaged in design, development, manufacture,

installation and servicing of wear, abrasion and corrosion resistant cast components

and grinding media used in grinding processes in cement, mining, power utilities and

aggregates business. The mill components and grinding media used in the grinding

process are essentially consumables subject to heavy impact, abrasion, corrosion and

therefore have to be replaced regularly, creating a significant replacement market.

Key strengths

• The products supplied by the company are in the nature of consumables used in

the grinding processes for cement, mining, thermal power and aggregates. Recurring

production linked demand forms the major chunk of sales.

• Mining has significantly higher consumption of grinding products per tonne of

output, (5-20x that of cement), it provides a much higher replacement market.

AIAE is looking for a 10% market share in the global mining markets.

Key challenges

• The products manufactured find application in industries such as: cement, mining

and power utilities. Slowdown in user industries can affect turnover and profitability.

• Aggressive capex plans may lead to increase in overhead expenses, hence in turn

may affect profitability.


• Better than expected volume growth in mining segment due to new avenues like

gold and copper will lead robust sales and realisations.

• Recent entry in Chinese markets for cement grinding media will help the company

to generate incremental sales in cement grinding media.

• Establishing advantage of high chrome over forged grinding will attract sales.


MID CAP

Share Data

Price (Rs) 1,157

BSE Sensex 27,206

Reuters code AIAE.BO

Bloomberg code AIAE IN





Absolute (6) 11 89

Relative 1 18 66

Valuation ratios (Consolidated)

Yr to 31 Mar FY15E FY16E FY17E

EPS (Rs) 48.1 53.4 58.9

+/- (%) 30.8 11.1 10.3

PER (x) 26.0 21.6 19.6

PBV (x) 5.6 4.3 3.6

Dividend/Yield (%) 0.5 0.5 0.5

EV/Sales (x) 4.9 4.0 3.4

EV/EBITDA (x) 18.3 14.6 12.7


Promoters 62

FIIs 24

MFs 6

Public & Others 8

Bhalchandra Shinde Renu [email protected] [email protected]

Quarterly performance (Consolidated) (Rs mn)

Y/E March Mar 14 Jun 14 Sep 14 Dec 14 Mar 15E FY14 FY15E

Sales 5,767 4,921 5,724 5,143 5,855 20,801 22,372

YoY (%) 26.1 1.4 16.4 (2.3) 1.5 18.8 7.6

EBITDA 1,652 1,273 1,478 1,522 1,581 5,022 6,030

EBITDA margin (%) 28.7 25.9 25.8 29.6 27.0 24.1 27.0

Adjusted PAT 1,198 954 1,083 1,150 1,207 3,468 4,537

YoY (%) 87.7 45.0 46.7 30.7 0.8 64.5 30.8

0200400600800

1,0001,2001,400

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AIA Engineering(Actual)Sensex


B&K RESEARCH

25

MAY 2015


Balance Sheet (Consolidated)

Period end (Rs mn) Mar 14 Mar 15E Mar 16E Mar 17E




Minority Interest and others 78 78 78 78

Non-current liabilities 1,131 1,135 1,144 1,155









Long-term loans and advances 212 228 257 292

Other non-current assets 10 35 35 35

Current assets 17,223 19,572 23,709 28,800

Cash & current investment 7,489 8,914 10,536 13,299


Total (Assets) 22,329 26,571 31,377 36,864

Total debt 1,206 1,206 1,206 1,206


Income Statement (Consolidated)


Net sales 20,801 22,372 25,101 28,506

Growth (%) 18.8 7.6 12.2 13.6


Operating profit 5,022 6,030 6,813 7,664

EBITDA 5,022 6,030 6,813 7,664

Growth (%) 61.9 20.1 13.0 12.5

Depreciation (381) (703) (909) (1,191)

Other income 334 963 1,082 1,225

EBIT 4,975 6,291 6,985 7,698

Finance cost (64) (32) (32) (32)

Exceptional & extraordinary (311) 0 0 0


Tax (current + deferred) (1,342) (1,721) (1,912) (2,108)

Profit/(Loss) for the period 3,258 4,537 5,041 5,558

P/L of Associates, (7) 0 0 0Min Int, Pref Div


Adjusted net profit 3,468 4,537 5,041 5,558

Growth (%) 64.5 30.8 11.1 10.3

AIA Engineering

Cash Flow Statement (Consolidated)



Depreciation 381 703 909 1,191

Change in working capital 387 (617) (2,210) (1,890)

Total tax paid (1,181) (1,708) (1,883) (2,072)

Others (45) 12 11 11

Cash flow from oper. (a) 4,143 4,649 3,780 4,906Capital expenditure (1,227) (2,566) (1,571) (1,576)

Change in investments (3,245) (17) (189) (579)

Others 31 (25) 0 0

Cash flow from inv. (b) (4,441) (2,608) (1,760) (2,155)Free cash flow (a+b) (298) 2,041 2,021 2,751Debt raised/(repaid) (403) 0 0 0

Dividend (incl. tax) (445) (625) (577) (555)

Others 552 (28) (32) (32)

Cash flow from fin. (c) (296) (652) (609) (587)Net chg in cash (a+b+c) (594) 1,388 1,411 2,164

Valuations (Consolidated)

Period end (x) Mar 14 Mar 15E Mar 16E Mar 17E


Key Ratios (Consolidated)

Period end (%) Mar 14 Mar 15E Mar 16E Mar 17E

Adjusted EPS (Rs) 36.8 48.1 53.4 58.9Growth 64.5 30.8 11.1 10.3CEPS (Rs) 40.8 55.6 63.1 71.5Book NAV/share (Rs) 184.3 225.4 271.8 323.7Dividend/share (Rs) 6.0 6.0 6.0 6.0Dividend payout ratio 20.5 14.7 13.2 12.0EBITDA margin 24.1 27.0 27.1 26.9EBIT margin 23.9 28.1 27.8 27.0Tax rate 29.2 27.5 27.5 27.5RoCE 28.4 30.1 27.9 26.0Total debt/Equity (x) 0.1 0.1 0.0 0.0Net debt/Equity (x) (0.4) (0.4) (0.4) (0.4)Du Pont Analysis - ROE (Consolidated)Net margin 16.7 20.3 20.1 19.5Asset turnover (x) 1.0 0.9 0.9 0.8Leverage factor (x) 1.3 1.3 1.2 1.2Return on equity 22.0 23.5 21.5 19.8


B&K RESEARCH

26

MAY 2015


Ajanta PharmaSustainable growth ahead

Company profile

Ajanta Pharma’s strategy to operate in niche segments like dermatology, ophthalmology

and CVS with novel products is proven effective and been able to carve a niche

amongst specialists. Establishing a front end in the emerging markets has led to the

international business contributing 2/3rd of the overall sales now. With focus on

novel branded products, Ajanta has been able to keep its costs low and thus enjoys

strong EBITDA margins of 32%.

Key strengths

• In India, Ajanta focuses on novel products to capture market share. Out of the

169 brands of Ajanta, 124 products were launched first time in India (2,500 MRs)

enabling it to post a CAGR of 34% in the last 10 years).

• Ajanta has registered 1,443 brands in the international markets and has a pipeline

of 1,596 brands under registration. It has field force of 450 sales people.

Key challenges

• Currency exchange rate risk is a challenge since global sales are 2/3rd of total and

it also hedges 50% of its global sales. Sharp fluctuations in the exchange rates can

unsettle the income streams for Ajanta, especially for EM’s.

• Ajanta sources majority of the business from the Africa which is vulnerable to

geo-political turmoil as well as medical emergency.


• Ajanta has filed 25 ANDA with USFDA and has received approval for 2. With a

plan to file more than 6 products per annum, the next leg of growth in international

markets would come from US generic markets.

• Growth in the branded business in Africa (especially Franco African countries)

which is expected to grow by 20-25%.


MID CAP

Share Data

Price (Rs) 1,285

BSE Sensex 27,206

Reuters code AJPH.BO

Bloomberg code AJP IN





Absolute (4) 19 196

Relative 3 27 159

Valuation ratios

Yr to 31 Mar FY14 FY15E

EPS (Rs) 66.2 35.7

+/- (%) 39.3 (46.1)

PER (x) 6.0 34.4

PBV (x) 2.4 12.9



EV/EBITDA (x) 3.8 21.3


Promoters 74

FIIs 8

MFs 2

Public & Others 17

Amit Hiremath Rohit Bhat Dhaval [email protected] [email protected] [email protected]


Y/E March Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 FY14 FY15

Sales 3,011 2,808 3,312 3,563 3,604 11,783 14,530

Change (%) 20.8 30.4 22.3 21.7 19.7 28.1 23.3

EBITDA 1,106 897 1,107 1,314 1,409 3,688 5,052

EBITDA margin (%) 35.5 31.2 32.8 36.2 38.2 30.5 34.1

Reported PAT 701 587 786 847 843 2,339 3,099

Adjusted PAT 701 587 786 847 891 2,339 3,156

Change (%) 158.7 80.5 40.9 35.7 27.1 108.6 34.9

0

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B&K RESEARCH

27

MAY 2015


Balance Sheet





Non-current liabilities 1,006 1,025 806 557










Long-term loans and adv. 507 486 392 93

Other non-current assets 13 71 88 53

Current assets 3,397 3,690 5,201 6,334

Cash & current investment 115 462 1,154 1,562


Total (Assets) 6,488 7,182 9,494 11,464

Total debt 1,714 1,246 1,128 512


Income Statement

Period end (R

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bnktrinity2015.files.wordpress.com · B&K R ESEARCH 2 MAY 2015 TRINITY INDIA - 2015 Valuation summary............................ 4-14 Companies ......................... 16-515 Aarti