Established IN

PL is one of the oldest and leading financial services providers in India

1944–1970

1944

= Team Strength

= New Service Vertical

= Achievement

2001 - 2017

10+

Equi�es Arbitrage Business

Equity Stock Broking

Registered as a partnership stock broking firm in 1944.

1971–1980

25+

IPO Distribu�on

Underwri�ng

First branch in Pune

First to offer doorstep service

1981–1990

60+

Ins�tu�onal Equi�es

Domes�c Ins�tu�onal Investor (DII)

Domes�c Funds

Badla Finance

First in India to computerize back office opera�ons

One of the leaders in Badla Finance for the retail segment

First to become a BSE member

1991–2000

120+

Foreign Ins�tu�onal Investor (FII)

Arbitrage between NSE and BSE

Franchisee setup

Empanelled with a number of FIIS & DIIS

Established a strong sub-broker network

275+ Corporate Advisory

Investment Banking

Margin Funding through NBFC

Por�olio Management Services (PMS)

Online Trading

Currency

Commodi�es

Corporate Advisory business grew manifold within 3 years

PMS - Corpus size grew mul�fold

Rated amongst the best by Ins�tu�onal investors for our research.

Consistently rated amongst the best brokerage houses for its research by Asiamoney Brokers Poll

7+Decades of POWERING FINANCIAL GROWTHFinancial expertise & Best-in-class research

RETAIL BUSINESSINSTITUTIONAL BUSINESS

NBFC

Along with a strong adherence to our founding principles of integrity, transparency and accountability.

Institutional Equities

Investment Banking

Corporate Advisory

Broking (Equity, Derivatives,

Commodities, Currency)

Wealth Management,

PMS

Bonds & Fixed Deposits

Loan against shares & securities

Margin Funding

Corporate STRUCTURE

Mutual Fund

IPO Distribution

Insurance

Real Estate Advisory.

PRABHUDAS LILLADHER ADVISORY SERVICES PRIVATE LIMITED

Centres

410+

Cities

120+

Foreign & Domestic Institutional Clients

150+

Retail Clients

75,000

Team Strength

275+

Prabhudas Lilladher Pvt. Ltd.

PL Capital Markets Pvt Ltd

Prabhudas Lilladher Financial Services Pvt Ltd

PL Distribution Company Pvt Ltd

PL Commodity Markets Pvt Ltd

PL Fund Advisors Pvt Ltd

Broking, Depository, PMS NBFC–Loan against Shares and securities

Investment Banking Commodity Trading Debt Syndication Third party financial products & Real Estate broking

PMS PRESENTATION 4

INDEX

DISCLAIMER:The presentation given by Prabhudas Lilladher Pvt. Ltd is only by way of information on a no-liability, no-guarantee and no-obligation basis. The information provided is based on past performance and these returns cannot be guaranteed in future. Any decision, action or omission thereon shall be entirely at the risk of the person and should be based solely on their own verification of all relevant facts, financial and other circumstances, by making a proper evaluation thereof in consonance with their investment objectives. Such persons should be aware of the risks involved while investing and trading in securities and will be solely liable for their decisions. Prabhudas Lilladher Pvt. Ltd shall not be responsible for any loss that such person may incur by relying on the information contained herein, whether used for investment decisions or otherwise. Investment in Equity, Currency, Futures and Options is subject to risk. Please read the risk disclosure document before investing.

BEST SCENARIO FOR EQUITY 5WEALTH CREATION BY INDIAN EQUITIES 6SOME OF THE PROMINENT MULTI-BAGGER IDEAS BY PL RESEARCH 7INDIA HAS THE POTENTIAL TO GROW ATLEAST @ 7-8% OVER THE NEXT DECADE 8

INDIA: ROBUST MACRO-ECONOMIC FUNDAMENTALS 9GOVT’S COMMITMENT TO MAMMOTH INFRA SPENDING OVER THE NEXT 3-5 YEARS 10

LEVERS FOR EARNINGS GROWTH IN PLACE 11STRONG INSTITUTIONAL FLOWS UNDERPIN INDIAN EQUITY MARKET’S RESILIENCE 12

1314 -151617181920

MARKET OUTLOOK FOR 2018

PL PMS: INVESTMENT PHILOSOPHY

FOCUS THEMES & KEY SECTORS

PL PMS: EDGE

PL PMS STRATEGY

CORE MEMBERS OF OUR TEAM

CONTACT DETAILS

PMS PRESENTATION 5

Best scenario for Equity Shift from physical to financial assetsReal Estate prices are under pressure, Gains have been limited for 3 years in a row

Gold prices have been benign, investment demand remains soft

This makes a unique opportunity to channelize savings into Equity markets

Indians have resorted to MF investing through SIP route – Rs. 70 bn / month inflows observed

Inflow in domestic funds cushions significant downsides on FIIs Sell-offs due to global risk-off events

GOLD AS AN INVESTMENT LOSES SHINE

REAL ESTATE SOFT, EXPERTS SAYING PRICE / TIME CORRECTION

No returns = few takers

Most tier 2 cities have seen 25% fall in prices

and few buyers

Supply side looking up due to low cost housing

Illiquid market for exits

DOMESTIC SAVINGS TO BE CHANNELIZED INTO EQUITY FUNDS

FIRST TIME IN 3 DECADES, DOMESTIC INVESTORS ARE EAGER TO BUY IF FIIS WERE TO SELL

3105029600

28007

26344

28624

2900030000

Avg 28946

2012 2013 2014 2015 2016 2017 2018

PMS PRESENTATION 6

Wealth creation by Indian Equities

BSE Sensex has delivered 15.8% CAGR from 1981 to June 2018

35423

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Dec-

80De

c-81

Dec-

82De

c-83

Dec-

84De

c-85

Dec-

86De

c-87

Dec-

88De

c-89

Dec-

90De

c-91

Dec-

92De

c-93

Dec-

94De

c-95

Dec-

96De

c-97

Dec-

98De

c-99

Dec-

00De

c-01

Dec-

02De

c-03

Dec-

04De

c-05

Dec-

06De

c-07

Dec-

08De

c-09

Dec-

10De

c-11

Dec-

12De

c-13

Dec-

14De

c-15

Dec-

16De

c-17

Dec-

18De

c-19

Dec-

20

1981-1990

Growth of 7 times

1991-2000

Growth of 3.8 times

2001-2010

Growth of 5.2 times

1481048

3972

16358

PMS PRESENTATION 7

PL RESEARCH AMONGST THE INITIAL FEW TO CATCH THE EMERGING TRENDS EARLY

PI Industries

Wabco India

Britannia JSPL

UPL

L&T Finance

Yes Bank

Indraprastha Gas

Indusind Bank

DMART

Maruti Suzuki

Jubilant LifeOUR RESEARCH HAS INITIATED TIMELY COVERAGE ON UPCOMING AND EMERGING STOCKS OVER THE PAST DECADE. SOME OF THE WEALTH CREATORS ARE NICHE PLAYERS AND MANY BEING LEADERS IN WHAT THEY DO.

SOME OF THE PROMINENT Multi-bagger ideas by PL Research

PMS PRESENTATION 8

India has the potential to grow atleast @ 7-8% over the next decade

Source: IMF Note: GDP for 2017

India’s GDP will grow at the fastest rate among all the major economies and India will continue to attract a torrent of capital flows

World UnitedStates Euro area China Japan India Brazil Russian

Federation Mexico Indonesia Turkey Argentina Nigeria Thailand SouthAfrica

2016 3.2 1.5 1.8 6.7 0.9 7.1 (3.5) (0.2) 2.3 5.0 3.2 (2.2) (1.6) 3.2 0.32017 3.7 2.3 2.4 6.8 1.8 6.7 1.1 1.8 2.1 5.2 5.1 2.5 0.8 3.7 0.92018 3.9 2.7 2.2 6.6 1.2 7.4 1.9 1.7 1.9 5.3 3.5 2.5 2.1 3.5 0.92019 3.9 2.5 2.0 6.4 0.9 7.8 2.1 1.5 2.3 5.5 3.5 2.7 1.9 3.4 0.9GDP (US $ trillion) 78.0 19.4 12.4 11.9 4.9 2.5 2.1 1.6 1.0 1.0 0.8 0.6 0.4 0.4 0.3

(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

Real

GD

P G

row

th (%

)

2016 2017 2018 2019

PMS PRESENTATION 9

India: ROBUSt MACRO-economic FundamentalsAMONG THE FASTEST GROWING MAJOR ECONOMIES IN THE WORLD

GOVERNMENT COMMITTED TO MEDIUM-TERM FISCAL CONSOLIDATION PLAN

CONSUMER INFLATION UNDER FIRM CONTROL

SPECTACULAR IMPROVEMENT IN CURRENT ACCOUNT DEFICIT AFTER FY13

Source: World Bank

Source: Bloomberg, CSO

Source: CSO

Source: Bloomberg, World Bank

9.4

6.9

8.6 8.9

6.7

5.5

6.4

7.5 8.0

7.1 6.7

7.4 7.8

4.4

5.2

6.0

6.8

7.6

8.4

9.2

10.0

FY08 FY10 FY12 FY14 FY16 FY18E FY20E

YoY Real GDP Growth (%)

6.5

5.4 5.76.2 5.9

4.54.0 4.1

3.32.5

6.06.5

4.95.8

4.8 4.64.1 3.9

3.5 3.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

E

Fiscal Deficit as a % of GDP

-1.0-0.9-0.6

0.71.2

2.2

-0.3

-1.2-1.1-1.4

-1.9-2.8-2.8

-4.4-4.8

-1.7 -1.3

-1.1

-0.7

-1.5

-6.0-5.0-4.0-3.0-2.0-1.00.01.02.03.0

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

E

CAD as a % of GDP

3.4

2.2

3.3 3.5

5.1

4.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Feb-

17

Mar

-17

Apr-

17

May

-17

Jun-

17

Jul-1

7

Aug-

17

Sep-

17

Oct

-17

Nov

-17

Dec-

17

Jan-

18

Feb-

18

Mar

-18

Apr-

18

May

-18

CPI (%)

9

PMS PRESENTATION 10

Govt’s Commitment to Mammoth Infra Spending over the next 3-5 years

roads HOUSING RAILWAY83,677 kms of roads to be built

Rs. 6.92 Lakh Cr to be invested

14.2 Cr mandays of jobs to be generated

Universal affordable housing for 2.2 Cr families 

PMAY- Urban-1.2cr units with outlay of Rs1,85,069 Cr 

PMAY - Gramin-1.02cr units with an outlay of Rs 1,26,795 Cr

Create a 3x bigger Railway which is economically viable

Leverage Rs. 8,56,000 Cr of capex to expand the Rail infrastructure

Focus on network decongestion through DFC and better signalling

PMS PRESENTATION 11

Levers for Earnings Growth in place

Capacity utilization of–70% is at multi-year low.

Pickup in utilization could kick-start operating leverage

GST & demonetisation could improve compliance by unorganized players

Price gaps to narrow, giving impetus to organized sales

Organized players better placed as brand consciousness improves

Corporate profitability boosted by higher liquidity and lower borrowing costs

Increase money multiplier to boost credit and trade

Operating Leverage Organized players to gain market share

COST OF CAPITAL STILL LOW

PMS PRESENTATION 12

Strong Institutional flows underpin Indian equity market’s resilience

Source: Bloomberg

-200

-100

0

100

200

300

400

Jan-

13

Mar

-13

May

-13

Jul-1

3

Sep-

13

Nov

-13

Jan-

14

Mar

-14

May

-14

Jul-1

4

Sep-

14

Nov

-14

Jan-

15

Mar

-15

May

-15

Jul-1

5

Sep-

15

Nov

-15

Jan-

16

Mar

-16

May

-16

Jul-1

6

Sep-

16

Nov

-16

Jan-

17

Mar

-17

May

-17

Jul-1

7

Sep-

17

Nov

-17

Jan-

18

Mar

-18

May

-18

(Rs b

n)

DII Equity FII Equity FII DebtCY13 DII Equity: -734.64FII Equity: 1,112.77FII Debt: -536.66

CY14DII Equity: -303.21FII Equity: 973.50FII Debt: 1,592.20

CY15DII Equity: 675.56FII Equity : 183.55FII Debt: 469.21

CY16DII Equity: 371.12FII Equity : 187.83FII Debt: -442.97

CY17DII Equity: 908.35FII Equity : 517.49FII Debt: 1,485.93

CY18DII Equity: 626.18FII Equity : -48.40FII Debt: -413.35

PMS PRESENTATION 13

Market Outlook for 2018

Earnings growth pick-up

Crude Rise

Buoyant tax collections leading to higher

govt spending

Geopolitical Tensions

Good Monsoon

Govt resorting to populist measures

FED Shrinking Balance Sheet

TRIGGERS FOR 2018

RISKS FOR 2018

PMS PRESENTATION 14

PL PMS: Investment Philosophy

Industry

Business ROI

Management

Great Business Undervalued Stock Price Performance

P/E vs Growth

Sector / Market P/E

DCF vs. Enterprise Value

Economic Value Add

Free Float

Institutional Interest

Research Coverage

BVM MATRIXIDEA GENERATION

MACRO THEMES STOCK FILTERS

BUSINESS VALUATION MARKET INTEREST

RISK CONTROL & PORTFOLIO CONSTRUCTION

PMS PRESENTATION 15

PL PMS: Investment Philosophy

Concentration Risk: Sector & Stock

Liquidity Risk

Investment cycle revival

Beneficiaries of accommodative monetary policy

Domestic consumption

Beneficiaries of revival in external trade / services

Strong corporate governance

Addressable market opportunity

Medium term growth prospects

Strong earnings growth

Efficient capital utilization

Rising RoE & free cash flow

1 2 3MACRO THEMES

STOCKFILTERS

RISK CONTROL & CONSTRUCTION

PMS PRESENTATION 16

Consumption

Unorganized to organized

Attractive Opportunities

IncreaseD government spending

Low interest rates

FMCG, Auto, Financials, Pharma, OMCs, Agri-inputs, NBFCs

Home Improvement, Consumer Durables, Retails, Auto Components

Turn-around Companies, Bad year in a good business, MNCs Etc.

Housing, Finance, Capital Goods, Cement, Farm Equipment

Infrastructure, Asset Owners, Construction, Metals, Utilities

Focus Themes & Key Sectors

PMS PRESENTATION 17

senior research team

experienced fund manager

Dedicated PMS SET-up

BEST corporate access

identification of themes

Senior Analyst Team rated across multiple sectors

More than 10 years of market experience

Mr. Ajay Bodke–Experienced Fund Manager for almost 2 decades

Mr. Nishna Biyani–Rated Midcap Analyst and experience of a decade

Dedicated PMS set-up with customer centric approach

PL has one of the best Corporate Access in the industry

Excellent connects with thought leaders / sector experts

Early identification of Themes

Focus on catching turn-around sectors

PL PMS: Edge

PMS PRESENTATION 18

PL PMS STRATEGIESPL PMS provides 3 unique strategies for your wealth growth:

MULTI-STRATEGY- Generate optimum returns by

investing in growth oriented stocks with a large-cap bias

- Help outperform the markets in the long run & provide capital appreciation

- Top 5 sectors: BFSI, FMCG & Retail, Auto, Hotel, Steel

EQUIGROW- Generate optimum returns by

investing in growth oriented stocks with a mid-cap bias

- Help outperform the markets in the long run

- Top 5 sectors: BFSI, FMCG & Retail, Hotel, Auto, Chemicals

FORTUNE- Invest in mid-size business that depict

leadership

- Open to all-caps but focus on bottoms up fundamental research

- Number of stocks capped at 20-25

- Top 5 sectors: BFSI, Ent & Media, Hotel, Agro-chemicals, Publication

PMS PRESENTATION 19

DILIP BHATT Nishna Biyani Nupur Patel

With more than 28 years of experience in the financial world, he is a Chartered Accountant of immaculate repute and is amongst the top ranked Equity experts in India.

Over 20 years of experience as Senior Portfolio Manager with India’s leading Mutual Funds like IDFC MF, Standard Chartered MF & SBI MF.

Over 11 years of experience split equally in the buy and sell side. Has managed a Corpus of Rs500m for ICICI Securities Primary Dealership (Absolute return oriented)

Over 16+ years of senior management experience in financial markets with renowned companies in the industry.

DIRECTOR PORTFOLIO MANAGER

HEAD SALES & MARKETING

AJAY BODKECEO & CHIEF PORTFOLIO MANAGER

CORE MEMBERS OF OUR TEAM

PMS PRESENTATION 20

CORPORATE OFFICE

Prabhudas Lilladher Pvt. Ltd.3rd Floor, Sadhana House,570, P. B. Marg, Behind Mahindra Tower,Worli, Mumbai - 400018. India.

M: 91.9821097856O: +91.22.66322350B: +91.22.66322222

nupurpatel@plindia.com

www.plindia.com

CONTACT US

/PLIndiaOnline

/Prabhudas-Lilladher