Muhurat Picks 2015 - SBISMART Picks 2015 Company CMP Target Upside (%) ... a new year with a traditional ceremony of 'Laxmi Puja'. Older books of account are closed and new

Muhurat Picks 2015Company CMP Target Upside (%)

Cadila Healthcare 417 493 18

Container Corp. of India 1406 1617 15

Gujarat Narmada Valley Fertilizers & Chemicals 74 90 21

ICICI Bank 263 302 15

Kansai Nerolac Paints 244 288 18

Tata Motors 412 494 20

Wonderla Holidays 335 409 22

SBICAP Securities Limited / 2

Executive Summary

Company Reco. Target Targeted CMP Actual Highest Price

Price (Rs) (Rs) Upside(%) (Rs) gain (%) Since Reco. (Rs)

Alembic Pharmaceuticals 403 465 15.4 669 66.0 791

Can Fin Homes 490 571 16.5 929 89.6 1029

Exide Industries 151 175 15.9 143 -5.3 205

Finolex Industries 318 400 25.8 292 -8.2 347

Hind. Media Vent. 166 192 15.7 278 67.5 290

Hindustan Zinc 165 188 13.9 153 -7.3 191

Repro India 243 285 17.3 418 72.0 610

Indian equity market amidst global developments viz Chinese Slowdown, Possibility of Fed rate hike,

slowing emerging markets and rating downgrades of few countries has continued to stand tall. At

times when emerging markets have seen subdued performance on stock market and currency falls,

Indian broader indices ended flat between Diwali 2014 and Diwali 2015. Sensex declined 2.5% whereas

Nifty fell 1.0% to close at 26121.4 and 7915.2 respectively between the Diwali week of current year

and last year.

The stock market continue to witness strong FII inflows and India emerged as the most attractive

investment destination in the world outpacing China and USA registering inflows of USD 31 billion

during the first half 2015-16. In last 3 years, India for the first time witnessed net outflow of Rs18000

crore in Q2FY16 dragging broader indices into red whereas in previous 12 quarters India has attracted

net investment of USD 52 billion.

We continue to believe that given the favourable macros, controlled inflation, improving GDP and IIP,

strong capital inflows, reforms, improving investment climate, lower commodity prices and stable

rating, Indian market would touch new highs in times to come.

We hereby bring you our performance of Diwali picks for the year 2014.

Performance of Muhurat Picks - 2014:


Indians are avid followers of rituals and customs, celebrating various festivals over the year. Among

them the most revered and spiritual occasion is 'Diwali', One of the holy 'saadhe tin muhurat' according

to Hindu religion. Religious Indians are strong believers of 'Shagun' and 'Muhurat', which means an

auspicious occasion. Traditional business communities in India start their new financial year on the

'Muhurat' with 'Laxmi Puja', praying goddess 'Laxmi' and earning her holy blessings for prosperity

and wealth.

'Samvat', a well heard word in financial markets is a short form of Sanskrit word 'Samvatsar' which

means a year. Vikram Samvat is the beginning of Hindu new year celebrated on 'chaitra shukla

pratipada'. The ruler of this samvat is Lord Indra whereas Moon is both, the king and the minister.

According to astrologers, 'Plavang' will be moderately conducive on economic front for the country.

Stock exchanges in India arrange for a special trading session on the eve of 'Diwali'. Traders welcome

a new year with a traditional ceremony of 'Laxmi Puja'. Older books of account are closed and new

books are opened with Puja. Customary small trades are placed by traders as 'shagun', a symbolic

start of new session on holy 'Muhurat', believing that the whole session will continue to bring prosperity

and create wealth for them.

With this context we bring you, seven muhurat picks for this muhurat trading session.

"With a hope that you attain success and bliss with every light that is lit during the DIwali."

“Wish You a Very Happy Diwali”

About Muhurat Trading


Key Investment Rationale:

Strong growth in the formulation business to help boost sales: The

US formulation market is estimated to be ~USD 60bn clocking a

growth rate of 10%, with the company for the year FY15 in this

segment having a growth rate of ~53% on YoY basis. Also, in the US

formulation market the company has recorded a CAGR growth in Sales

of the 32% for the period of five years from FY11 to FY15. A smaller

player with robust growth rate reflects the higher prospects for the

company. The company has also started to expand in the other

potential markets covering both developed and emerging markets.

Strong product Pipeline: In the domestic formulation market the

company has launched more than 55 new products during FY15 of

which 19 drugs were launched first-in-India. The US product pipeline

on cumulative basis consists of 260 ANDA fillings, 99 approvals and

70 new launches so far out of which 9 new products were launched

in FY15. For FY15 the company has filed for 10 new products in Brazil,

7 new products in Mexico and 16 in Europe. The unique and crucial

products named "biosimilar of Adalimumab" used for the treatment

of rheumatoid arthritis and "Lipaglyn" used for the treatment of

patients with Type 2 diabetes would be the growth driver for the

business.

Strong financial performance: The company has posted strong

numbers with sales CAGR of 13.5% over the period of FY11-FY15.

Also, the company expects to cross 10,000 crores of sales figures for

FY16. The company's EBITDA margins for FY15 stands at 20.43% and

going forward for FY-16 the company expects to maintain this

momentum. The company has also reduced its debt reducing Debt

to Equity ratio to 0.47 at the end of FY15.

Valuation :

At the current price of Rs417, the stock is trading at 37x its FY15

consolidated earnings whereas on P/Bv the same is available at 10x. The

company has strong balance sheet and recent quarter performance of

the company is reasonably good. We have positive view on the stock

and recommend a BUY with price target of Rs493.

Cadila Healthcare Ltd.

Particulars FY15A FY14A FY13A FY12A

Net Sales (Cr) 6,357.7 5,263.3 55.7 50.7

EBITDA(Rs Cr) 1,745.0 1,182.9 1,125.1 1,083.9

Net Profit (Cr) 1,150.6 803.6 653.5 652.6

EPS (Rs) 11.2 39.2 31.9 31.9

Book Value(Rs) 41.5 167.9 143.8 126.3

FINANCIAL SNAPSHOT

CHART

CMP ( `̀̀̀̀) 417

Target ( `̀̀̀̀) 493

Upside Potential (%) 18

BSE Code: 532321 I NSE Symbol: CADILAHC


OPM (%) 27.4 22.5 2,019.9 2,137.9

NPM (%) 18.1 15.3 1,173.2 1,287.2

CMP (Rs) 417.4 2,087.0 2,087.0 2,087.0

PE (x) 37.1 53.2 65.4 65.5

P/Bv (X) 10.1 12.4 14.5 16.5

D/E (X) 0.6 0.8 1.0 0.9

ROE (%) 30.9 26.7 25.1 27.7

ROCE (%) 22.7 17.0 17.9 23.0

KEY FINANCIAL RATIOS

Technical View:

Cadila Healthcare is trading in upwards sloping channel.

The counter is making higher tops and higher bottoms with increase in

Volumes in Monthly chart.

The counter has closed above Swing level of 400 made on April 2015

Moving Average Convergence Divergence have given positive diversion

and trading above zero level.



Widest logistics network in the country: The company is the leader

in providing comprehensive logistics services in India through road,

rail and air. At the end of FY15, the company has total 63 Terminals.

The company continues to enrich its fleet size and emphasizes on

improving and expanding its service offering. During FY15, the

company added 765 BLC and 235 BVZI brake van wagons increasing

the holding of high speed wagons to 11,754 and total wagon holding

to 13,111. The company also has 20,247 (owned plus leased)

containers and it also owns 52 Reach Stackers and 17 Gantry cranes.

Encashing the potential industry growth: Indian Railways recorded

a moderate growth of 4.18% in originating freight loading in 2014-

15. The containers handled at all Ports of the country registered a

healthy growth of 10.33%. In order to encash the industry potential

the company is continuing to expand and improve its infrastructure.

During FY15 it incurred capex of 746 crores on creation of new

terminals, expansion of existing ones and acquiring wagons and

containers. It has plans to set up 15 new multi-modal Logistics Parks

(MMLPs) within 12th five year plan period for providing seamless

connectivity and one stop solutions to its customers.

Strategic management initiatives: The government's renewed focus

on industry revamption, make in India campaign, proposed GST and

the initiatives on strengthening infrastructure are poised to be the

growth drivers for logistics industry in the country. In order to

capitalize upon the likely growth in container volumes the company

is in the process of developing infrastructure along the proposed

Dedicated Freight Corridors (DFC) routes.

Valuation:

At CMP of Rs 1406, stock is trading at PE of 26.51x of its September

2015ttm earnings. Expected boost in logistics industry oweing to revived

business activities in the country and the aggressive initiatives by the

industry leader to capitalize on the opportunity make us bullish on the

stock with target price of Rs. 1617 providing potential upside of 15.0%.

Container Corporation of India Ltd.

CHART

BSE Code: 531344 I NSE Symbol: CONCOR

Technical View:

Container Corporation of India has taken 50% Fibonacci Retracementsupport around level of 1318.76 at close of 1325.15

(From the all time high of 1947.70 made on June 2015 to the swing lowof 689.83 made on February 2014)

Stochastic has given positive diversion around over sold territory.

The counter is currently trading above Middle Band that that is 20 periodsSimple Moving Average.

CMP ( `̀̀̀̀) 1406

Target ( `̀̀̀̀) 1617



Net Sales (Cr) 6,149.3 5,316.7 4,445.0 4,100.9

EBITDA (Cr) 1,402.4 1,152.8 1,049.7 1,023.2

Net Profit (Cr) 1,054.6 944.3 930.6 865.7

EPS (Rs) 54.1 48.4 71.6 66.6

Book Value (Rs) 385.5 351.7 478.6 427.4

FINANCIAL SNAPSHOT


OPM (%) 22.8 21.7 23.6 25.0

NPM (%) 17.1 17.8 20.9 21.1

CMP (Rs) 1,405.7 1,405.7 1,405.7 1,405.7

PE (x) 26.0 29.0 19.6 21.1

P/Bv (X) 3.6 4.0 2.9 3.3

D/E (X) 0.0 0.0 0.0 0.0

ROE (%) 14.7 14.5 15.8 16.5

ROCE (%) 18.0 19.0 20.2 21.9




Niche player with diverse product base: GNFC is one of the marketleaders in the highly regulated and higher entry barrier Fertilizersindustry. GNFC's fertilizer portfolio includes Urea and AmmoniumNitrophosphate under the brand name of "NARMADA along withSingle Super Phosphate (SSP), indigenously sourced Di-AmmoniumPhosphate (DAP), Urea and Muriate of Potash (MOP).

GNFC's industrial chemicals portfolio includes Methanol, Formic Acid,Nitric Acid, Acetic Acid, Toluene Di - Isocyanate, Aniline, AmmoniumNitrate, Ethyl Acetate and Methyl Formate. Among which thecompany is the only manufacturer of Toluene Di-Isocynate in SouthEast Asia and Indian Sub Continent. Per capita consumption ofindustrial chemicals in the country has been very low at about 1/10th of the world average, reflecting the robust growth potential ofthe industry.

Strategic initiatives to drive growth: Most of the GNFC's plants areoperating at more than 100% utilization. The ability to operate athigh utilisation levels coupled with switch product slate to suit marketconditions has enabled the company to capture margin optimizationopportunities in the market. GNFC has decided to strategically focuson major fertilizers consuming markets including Gujarat,Maharashtra and MP by aggressively expanding its network of retailoutlet known as Narmada khedut Sahay Kendras (NKSKS). In chemicalbusiness, more thrust on export has been given to ensure availabilityof new markets. During FY15 16,000 MTs of Chemicals were exported.

Further margin expansion: The company has made a provision forimpairment for its TDI plant at Dahej plant in FY15 booking a net lossfor the first time however; its operating performance remains intact.Going forward, lower oil prices, Brown Field Ammonia-Urea Projectunder New Investment Policy-2012 for Urea in October, 2014 and Di-Calcium Phosphate Project would improve the profit margins further.

Valuation:

At CMP of Rs. 74, the stock is trading at EV/EBITDA of 159.72 of its FY15EBITDA. Higher untapped potential in the domestic industrial chemicalsindustry, imminent urea and Di-Calcium Phosphate projects and theimproved rainfall in the last leg of the season provides the visibility ofthe robust future for the company. We have positive view on the stockwith price target of Rs 90.

GNFC

CHART

BSE Code: 500670 I NSE Symbol: GNFC

Technical View:

GNFC is making higher tops and higher bottoms with increase in Volumesin Monthly chart.

Relative Strength Index and Stochastic has given positive diversionaround oversold territory.

The Counter has made "Big White Candle" with increase in Volumesshowing good buying sentiment.

CMP ( `̀̀̀̀) 74

Target ( `̀̀̀̀) 90



Net Sales (Cr) 4,641.5 4,847.2 4,252.6 3,862.0

EBITDA (Cr) -20.6 616.5 593.3 551.4

Net Profit (Cr) -452.1 292.3 273.1 283.8

EPS (Rs) - 18.8 17.6 18.3

Book Value (Rs) 159.6 189.5 174.8 161.3

FINANCIAL SNAPSHOT


OPM (%) -0.4 12.7 14.0 14.3

NPM (%) - 6.0 6.4 7.3

CMP (Rs) 74.3 74.3 74.3 74.3

PE (x) - 4.0 4.2 4.1

P/Bv (X) 0.5 0.4 0.4 0.5

D/E (X) 1.5 1.3 1.2 0.8

ROE (%) - 10.3 10.5 11.8

ROCE (%) - 7.3 9.2 11.1




Strong credit and deposit growth : The total loan book for the bank

grew by 13% on YoY basis as on Q2FY16 majorly due to the 17% surge

in the domestic loans. The company's total loan portfolio consists of

44% of the retail loans which has increased from the previous year's

proportion of 40%. This has resulted in a 25% YoY growth in the retail

business of the bank as on Q2FY2016. The bank has seen robust

growth in the total deposits with its total CASA deposits showing an

increase of 13% on YoY basis for Q2FY16.

Robust Business model : ICICI bank is the country's largest private

sector bank with the total assets worth INR8.3Tn as on September

2015. The bank majorly operates in the retail side of the business

with majority of the lending in the retail financing. The bank has the

largest branch network among the private sector players with 4050

branches and 12451 ATM networks. The bank also provides end to

end international banking solutions to the Indian corporate clients.

The bank is also one of the leaders in the remittances business.

Stable Asset Quality and improved technology initiatives : Net non

performing assets of the bank as on FY15 were at INR 6325 crore

with a net nonperforming ratio at 1.4%. The bank has been

consistently taking various initiatives on the technology front like

upgrading its mobile banking application and launching unique locker

facility called Smart vault. Also it is the largest bank to provide online

remittance services to the clients.

Valuation:

At the current price of Rs263, the stock is available at 1.8x of its FY15

book. The recovery in the economy to drive the credit growth at double

digit especially in corporate loan segment and is likely to improve the

asset quality. The bank has perform well in recent quarter despite the

subdued earning season. The recent price correction is a good buying

opportunity. We have positive view on the stock and recommend a BUY

on the stock with price target of Rs302.

ICICI Bank

CHART

BSE Code: 532174 I NSE Symbol: ICICIBANK

Technical View:

ICICIBANK has taken 50% Fibonacci Retracement support around level

of 266.87 at low of 267.10

(From the all time high of 385.88 made on January 2015 to the swing

low of 147.86 made on August 2013)

Stochastic has given positive diversion near around sold territory

The counter is also trading above swing high of 265.30 made on January

2008.

CMP ( `̀̀̀̀) 263

Target ( `̀̀̀̀) 302



NII (Cr) 22,645.9 19,768.6 16,599.2 12,981.6

PAT (Cr) 12,942.3 11,677.1 10,129.9 7,937.6

Loan Book (Cr) 438,490.1 387,341.8 329,974.1 292,125.4

Total Assets (cr) 828,837.0 750,013.8 675,298.0 619,724.9

GNPA (Cr) 15,094.7 10,505.8 9,607.8 9,475.3

Cost/Inc. Ratio (%) 58.8 60.0 63.0 65.8

NIM (%) 3.0 2.9 2.7 2.3

Int. Spread (%) 1.8 1.8 1.5 1.2

FINANCIAL SNAPSHOT


P/BV (x) 1.8 2.0 2.2 2.5

PE (x) 11.8 13.0 15.0 19.1

P/ABV (x) 2.2 2.3 2.6 2.9

Div Yield (%) 1.9 1.7 1.5 1.3

ROE (%) 15.3 15.3 14.7 3.0

ROA (%) 1.6 1.6 1.5 1.3




Capitalizing on Global Technology parent: KNPL has emerged to be

the most diversified paints solution provider in the country.

Technological advancements of its global parent Kansai Paints Co.

Ltd has enabled the company to diversify its offering to include

Decorative, Wood coatings, Automotive, Auto Refinish, Performance

Coating and Powder Coating. The innovative offerings has expanded

to include environment friendly, lead free, odour free and zero VOC

paints, eco friendly plastic coatings for car interiors, Cathodic Electro

Deposition (CED) primers for Auto OEMs with enhanced corrosion

protection. The parent's recognition has made KNPL seek tie ups with

the major auto OEMs.

Aggressive branding and marketing exercise to improve market

penetration: The company operates through 4 manufacturing

facilities and 94 depots strategically located to its industrial clients

enabling it to efficiently meet the diverse needs of the industry. The

company has started undertaking branding exercise through new

channels including celebrity endorse, regional advertising, social

websites, festive offers through ecommerce channel, dedicated

websites, mobile apps and QR code system. It has started investing

heavily in tracking consumer behavior.

Robust growth drivers in place: Operating efficiency and niche

positioning have expanded the operating margin by over 100 bps

over the last four years. Whereas ROCE has expanded by ~600 bps

and RONW has expanded by 30 bps over the same period. Eased

crude oil prices, policy direction undertaken by the government will

lead to a revival of all major clientele sectors. Two new products 'excel

rainguard' and 'statue paints' launches during FY15 and the recent JV

to expand in Sri Lanka will generate the new growth opportunities

for the company.

Valuation:

At CMP of Rs 244, the stock is trading at PE of 41.46x of its September

2015 TTM earnings. Compressive product offerings, contained crude oil

prices, improved efficiency and geographical diversification would drive

the business growth in the near future. We recommend buying the stock

with target price of Rs. 288 providing an upside of 18.0%.

Kansai Nerolac Paints

CHART

BSE Code: 500165 I NSE Symbol: KANSAINER

Technical View:

Kansai Nerolac Paints has made Bullish "Harami Red" pattern with

increase in volumes in October 2015.

The Counter has made "Big White Candle" in the month of January 2015

and July 2015 with increase in volumes showing good buying sentiment.

The counter is taking support of 10 Period Simple Moving Average on

closing basis.

The Counter is holding upwards sloping trend line joining low of 231

made on Sept 2015 and low of 236 made on October 2015.

CMP ( `̀̀̀̀) 244

Target ( `̀̀̀̀) 288



Net Sales (Cr) 3,754.1 3,364.7 3,023.3 2,744.2

EBITDA (Cr) 444.8 367.4 337.7 337.3

Net Profit (Cr) 271.7 208.0 293.1 215.9

EPS (Rs) 5.0 38.6 54.4 40.1

Book Value (Rs) 29.6 264.6 238.8 197.3

FINANCIAL SNAPSHOT


OPM (%) 11.8 10.9 11.2 12.3

NPM (%) 7.2 6.2 9.7 7.9

CMP (Rs) 243.8 2,438.0 2,438.0 2,438.0

PE (x) 48.4 63.2 44.8 60.9

P/Bv (X) 8.2 9.2 10.2 12.4

D/E (X) 0.0 0.0 0.1 0.1

ROE (%) 18.2 15.4 16.1 21.8

ROCE (%) 25.3 21.2 21.2 27.5




Revival in the domestic economy to boost sales of M&HCV : The

company is the market leader in the medium and high commercial

vehicle segment with the total market share of 52.6% and the

company has shown a 20.7% YoY increase in this segment for Q1FY16.

Increasing interest of the government to improve the infrastructure

activities and also due to increased mining activities will help the

company to gain from this opportunity.

Strong Pipeline to boost sales growth : For FY16 the company has

launched "Prima" in the commercial vehicle segment and in the light

commercial platform it has launched "Ultra" and refreshes/variants

in SCV and pickups- ACE Mega/Super ACE Mint. Also, JLR is committed

to launch of new models like Discovery sport, Jaguar XE, Jaguar XF,

Jaguar XJ, Jaguar F-Pace and Range Rover Evoque which will help the

company to boost sales growth in the near future.

JLR envisages strong prospects: The automaker has received brunt

of slowdown in China sales. It is getting compensated by the revival

in JLR performance over the last few quarters. Improving trend in

sales of JLR specifically in UK, mainland Europe and US could be seen

continuing momentum in the future. During the quarter ended

September 2015, sales in UK (up 30%), Europe (up 20%) and US (up

65%) offset the loss from China operations. The JLR subsidiary has

been reporting higher depreciation eating away its profits however,

revived growth in volume and the new launch of XE expected in

Q1CY16 depicts the buoyant future ahead.

Valuation:

At the current price of Rs412, the stock is trading at 9.5x its FY15

consolidated earnings whereas on P/Bv the same is available at 2.4x.

The recovery in domestic market especially on MHCV segment and new

launches across different segment coupled with lower interest rate to

help driving domestic volume. The JLR segment is also expected to do

well despite the Chinese slowdown as US and European market is

showing recovery in growth. We have positive view on the stock and

recommend a BUY with price target of Rs494.

Tata Motors

CHART

BSE Code: 500570 I NSE Symbol: TATAMOTORS

Technical View:

Tata motors has taking support at swing low of 279.10 making "Hammerpattern" around Lower Bollinger Band

The counter is currently trading above Middle Band that is 20 periodsSimple Moving Average and making higher tops with increase in Volumesin Weekly chart.

Relative Strength Index and Moving Average Convergence Divergencehave given positive diversion.

CMP ( `̀̀̀̀) 412

Target ( `̀̀̀̀) 494



Net Sales (Cr) 262,796.3 232,833.7 188,792.7 165,654.5

EBITDA (Cr) 39,053.9 33,868.0 23,993.3 21,479.7

Net Profit (Cr) 13,986.3 13,991.0 9,892.6 13,516.5

EPS (Rs) 43.5 43.5 31.0 106.5

Book Value (Rs) 174.8 203.8 118.0 257.6

FINANCIAL SNAPSHOT


OPM (%) 14.9 14.5 12.7 13.0

NPM (%) 5.3 6.0 5.2 8.2

CMP (Rs) 412.0 412.0 412.0 412.0

PE (x) 9.5 9.5 13.3 3.9

P/Bv (X) 2.4 2.0 3.5 1.6

D/E (X) 1.3 0.9 1.4 1.4

ROE (%) 23.1 27.2 27.9 52.0

ROCE (%) 18.0 19.3 17.9 22.4




Strategical locations of the parks: The company has been selective

in its locations for the parks across India. Its existing parks at Bangalore

and Kochi are targeting industrialized, young, higher per capita income

and cosmopolitan demography. The location advantage and the

positioning as a one day holiday destination has augured well

increasing the number of visitors to 23.40 lakhs in FY15 from 20.28

lakhs in FY11. The third park at Hyderabad which is expected to be

operational early in the FY17 would be the growth driver ahead.

Rationalizing Revenue mix: Strategically focusing on revenue mix

(Ticket and non-ticket) to align with global trend helps Wonderla to

stand out attracting more visitors in the highly price sensitive domestic

industry. The initiatives to follow the global trend of integrated parks

combining amusement park with resort, F&B centres, retail centres

and merchandise offering is expected to be successful in domestic

market as well and are poised to improve the non-ticketing revenue

of Wonderla. In Indian amusement industry 75-80% revenue is

contributed by entry ticket against 35-37% in the global industry.

Wonderla's non-ticketing revenue constitutes only 20% of total

revenue reflecting the huge existing potential in the segment. The

Company's ticket revenue has grown at CAGR of around 17% through

FY11-15 whereas the non - ticket revenue has grown at CAGR of

around 37% over the same period.

Strong financial performance: Over the last five years, the company

has grown its revenue at CAGR of ~15% consistently maintaining

operating margins at ~50% and net margin of more than 25%. The

lightly levered company has been financing its expansion through

internal accruals. Robust untapped potential of amusement park

industry coupled with increasing presence in lucrative resort segment

would continue the momentum going forward.

Valuation:

At CMP of Rs. 335 the stock is trading at 31.9x of September 2015 ttm

earnings. Commissioning of new park at Hyderabad and rationalization

of revenue mix with adaptation of new and global policies creates robust

business opportunity for the company. We are bullish on the stock and

expect to gain 22.0% return with target price of Rs. 409.

Wonderla Holidays

CHART

BSE Code: 538268 I NSE Symbol: WONDERLA

Technical View:

Wonderla Holidays is trading near its All time high

The counter has taken 50% Fibonacci Retracement support around level

of 235.85 on closing basis. (From the all time high of 355.50 made on

August 2015 to all time low of 152.20 made on May 2014)

The counter is making higher tops and higher bottoms with increase in

Volumes in Monthly chart.

The counter is trading above swing level of 334.65.

CMP ( `̀̀̀̀) 335

Target ( `̀̀̀̀) 409



Net Sales (Cr) 181.9 153.6 137.9 113.1

EBITDA (Cr) 81.1 70.6 62.8 55.8

Net Profit (Cr) 50.6 39.9 33.6 30.0

EPS (Rs) 9.0 9.5 8.0 7.2

Book Value (Rs) 63.1 35.7 28.6 22.3

FINANCIAL SNAPSHOT


OPM (%) 44.6 46.0 45.6 49.3

NPM (%) 27.8 26.0 24.4 26.6

CMP (Rs) 335.2 335.2 335.2 335.2

PE (x) 37.4 35.3 41.9 46.9

P/Bv (X) 5.3 9.4 11.7 15.0

D/E (X) 0.0 0.2 0.2 0.2

ROE (%) 20.0 29.6 31.4 36.5

ROCE (%) 27.4 37.6 40.5 44.3


DISCLOSURES &DISCLAIMERS:

Analyst Certification: The views expressed in this research report ("Report") accurately reflect the personal views of the research analysts ("Analysts") employed bySBICAP Securities Limited (SSL) about any and all of the subject issuer(s) or company(ies) or securities. This report has been prepared based upon informationavailable to the public and sources, believed to be reliable. I/We also certify that no part of my/our compensation was, is, or will be directly or indirectly related to thespecific recommendation(s) or view(s) in this report.

The Analysts engaged in preparation of this Report or his/her relative:-

(a) do not have any financial interests in the subject company mentioned in this Report; (b) do not own 1% or more of the equity securities of the subject companymentioned in the report as of the last dayof the month preceding the publication of the research report; (c) do not have any material conflict of interest at the timeof publication of the Report.

The Analysts engaged in preparation of this Report:-

(a) have not received any compensation from the subject company in the past twelve months; (b) have not managed or co-managed public offering of securities forthe subject company in the past twelve months; (c)have not received any compensation for investment banking or merchant banking or brokerage services from thesubject company in the past twelve months; (d) have not received any compensation for products orservices other than investment banking or merchant banking orbrokerage services from the subject company in the past twelve months; (e) has not received any compensation or other benefits from the subjectcompany or thirdparty in connection with the Report; (f) has not served as an officer, director or employee of the subject company; (g) is not engaged in market making activity for thesubject company.

Name Qualification Designation

Ashu Bagri B.Com AVP - Technical Analyst

Amit Bagade MBA Technical Analyst

Rajesh Gupta PGDBM (Finance) AVP - Research

Vaibhav Joshi MMS (Finance) Research Associate

Rahul Meshram MSc. (Finance) Research Associate

Other Disclosures :

SBICAP Securities Limited ("SSL"),a full service Stock Broking company, is engaged in diversified financial services business including equity broking, DP services,distribution of Mutual Fund, insurance products and other financial products.SSL is a member of National Stock Exchange of India Limited and BSE Limited. SSL is alsoa Depository Participant registered with NSDL & CDSL. SSL is a large broking house catering toretail, HNI and institutional clients. It operates through its branches andauthorized persons spread across the country and the clients are provided online trading through internet and offline tradingthrough branches and call & tradefacility. SSL is a wholly owned subsidiary of SBI Capital Markets Limited ("SBICAP"), which is engaged into investment banking, project advisory and financial servicesactivities and is registered with the Securities and Exchange Board of India as a "Category I" Merchant Banker. SBICAP is a wholly owned subsidiary of State Bank ofIndia. Hence, State Bank of India and all its subsidiaries, including, SBICAP and banking subsidiaries are treated and referred to as Associates of SSL.

We hereby declare that our activities were neither suspended nor we have materially defaulted with any stock exchange authority with whom we are registered inlast five years. However SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advice letters or leviedminor penalty for certain procedural lapses. We have not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has ourcertificate of registration been cancelled by SEBI at any point of time.

SSL or its Associates, may: (a) from time to time, have long or short position in, and buy or sell the securities of the company mentioned in the Report or (b) beengaged in any other in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instrumentsof the company discussed herein or act as an advisor or lender/borrower to such company or may have any other potential conflict of interests with respect to anyrecommendation and other related information and opinions.

SSLdoes not have actual / beneficial ownership of one per cent or more securities of the subject company, at the end of the month immediately preceding the dateof publication of the Report.However, since Associates of SSL are engaged in the financial services business, they might have in their normal course of businessfinancial interests or actual / beneficial ownership of one per cent or more in various companies including the subject company mentioned herein this Report.

SSL or its Associates might have managed or co-managed public offering of securities for the subject company in the past twelve months and might have receivedcompensation from the companies mentioned in the Report during the period preceding twelve months from the date of this Report for services in respect ofmanaging or co-managing public offerings/corporate finance, investment banking or merchant banking, brokerage services or other advisory services in a merger orspecific transaction.

Compensation paid to Analysts of SSL is not based on any specific merchant banking, investment banking or brokerage service transaction.

SSL or its Associate did not receive any compensation or any benefit from the subject company or third party in connection with preparation of this Report.

This Report is for the personal information of the authorized recipient(s) and is not for public distribution and should not be reproduced, transmitted or redistributedto any other person or in any form without SSL's prior permission. The information provided in the Report is from publicly available data, which we believe, are

SBICAP Securities Limited(CIN): U65999MH2005PLC155485 I Research Analyst Registration No INH000000602

SEBI Registration No.: NSE Capital Market: INB 231052938 | NSE Derivatives: INF 231052938 | BSE Capital Market: INB 011053031Currency Derivatives: INE231052938 | CDSL: IN-DP-CDSL-370-2006 | IRDA/IR2/2014/241

Corporate Office: Marathon Futurex, A & B Wing, 12th Floor, N. M. Joshi Marg, Lower Parel, Mumbai-400013.

For any information contact us:

Toll Free: 1800-22-33-45 I 1800-209-93-45

E-mail: [email protected] I Web: www.sbismart.com

reliable. While reasonable endeavors have been made to present reliable data in the Report so far as it relates to current and historical information, but SSL does notguarantee the accuracy or completeness of the data in the Report. Accordingly, SSL or any of its Associates including directors and employees thereof shall not be inany way responsible or liable for any loss or damage that may arise to any person from any inadvertent error in the information contained, views and opinionsexpressed in this Report or in connection with the use of this Report.

Please ensure that you have read "Risk Disclosure Document for Capital Market and Derivatives Segments" as prescribed by Securities and Exchange Board of Indiabefore investing in Indian securities market.

The projections and forecasts described in this Report should be carefully evaluated as these :

1. Are based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies.

2. Can be expected that some of the estimates on which these were based, will not materialize or will vary significantly from actual results, and such variances mayincrease over time.

3. Are not prepared with a view towards compliance with published guidelines or generally accepted accounting principles. No independent accountants haveexpressed an opinion or any other form of assurance on these.

4. Should not be regarded, by mere inclusion in this report, as a representation or warranty by or on behalf of SSL the authors of this report, or any other person,that these or their underlying assumptions will be achieved.

This Report is for information purposes only and SSL or its Associates accept no liabilities for any loss or damage of any kind arising out of the use of this report.Though disseminated to recipientssimultaneously, not all recipients may receive this report at the same time. SSL will not treat recipients as clients by virtue of theirreceiving this report.It should not be construed as an offer to sell or solicitation of an offer to buy, purchase or subscribe to any securities this report shall not formthe basis of or be relied upon in connection with any contract or commitment, whatsoever. This report does not solicit any action based on the material containedherein.

It does not constitute a personal recommendation and does not take into account the specific investment objectives, financial situation/circumstances and theparticular needs of any specific person who may receive this document. The securities discussed in this Report may not be suitable for all the investors. SSL does notprovide legal, accounting or tax advice to its clients and you should independently evaluate the suitability of this Report and all investors are strongly advised to seekprofessional consultation 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 arenot suitable for all investors. Foreign currency denominated securities are subject to fluctuations in exchange rates that could have an adverse effect on the value orprice of or income derived from the investment.

The price, value and income of the investments referred to in this Report may fluctuate and investors may realize losses on any investments. Past performance is nota guide for future performance. Actual results may differ materially from those set forth in projections. SSL has reviewed the Report and, the current or historicalinformation included here is believed to be reliable, the accuracy and completeness of which is not guaranteed. SSL does not have any obligationto update theinformation discussed in this Report.

The opinions expressed in this report are subject to change without notice and SSL or its Associates have no obligation to tell the clients when opinions or informationin this report change. This Report has not been approved and will not or may not be reviewed or approved by any statutory or regulatory authority in India, UnitedKingdom or Singapore or by any Stock Exchange in India, United Kingdom or Singapore. This report may not be all inclusive and may not contain all the informationthat the recipient may consider material.

The securities described herein may not be eligible for sale in all jurisdictions or to all categories of investors. The countries in which the companies mentioned in thisReport are organized may have restrictions on investments, voting rights or dealings in securities by nationals of other countries. Distributing /taking/sending/dispatching/transmitting this document in certain foreign jurisdictions may be restricted by law, and persons into whose possession this document comes shouldinform themselves about, and observe, any such restrictions. Failure to comply with this restriction may constitute a violation of laws in that jurisdiction.

____________________________________________________________________________________________________________________________________________

Legal Entity Disclosure

Singapore: This Report is distributed in Singapore by SBICAP (Singapore) Limited (Registration No. 201026168R), an Associate of SSL incorporated in Singapore.SBICAP (Singapore) Limited is regulated by the Monetary Authority of Singapore as a holder of a Capital Markets Services License and an Exempt Financial Adviser inSingapore. SBICAP (Singapore) Limited's services are available solely to persons who qualify as Institutional Investors or Accredited Investors (other than individuals)as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA") and this Report is not intended to be distributed directly orindirectly to any other class of persons. Persons in Singapore should contact SBICAP (Singapore) Limited in respect of any matters arising from, or in connection withthis report via email at [email protected] by call at +65 6709 8651..

United Kingdom: SBICAP (UK) Limited, a fellow subsidiary of SSL, incorporated in United Kingdom is authorised and regulated by the Financial Conduct Authority.This marketing communication is being solely issued to and directed at persons (i) fall within one of the categories of "Investment Professionals" as defined in Article19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Financial Promotion Order"), (ii) fall within any of thecategories of persons described in Article 49 of the Financial Promotion Order ("High net worth companies, unincorporated associations etc.") or (iii) any otherperson to whom it may otherwise lawfully be made available (together "Relevant Persons") by SSL. The materials are exempt from the general restriction on thecommunication of invitations or inducements to enter into investment activity on the basis that they are only being made to Relevant Persons and have therefore notbeen approved by an authorised person as would otherwise be required by section 21 of the Financial Services and Markets Act 2000 ("FSMA").

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