QUARTERLY

BASKET

May07,2018

CurrentMkt.Price(Rs.) 930.30

FaceValue(Rs.) 2.00

52WeekHigh/Low 1106.60/811.11

M.Cap(Rs.inCr.) 129527.08

EPS(Rs.) 62.64

P/ERatio(times) 14.85

P/BRatio(times) 3.56

DividendYield(%) 1.29

StockExchange BSE

VALUEPARAMETERS

(Ason31stMar2018) %OfHolding

Foreign 26.99

Institutions 9.78

Govtholding 0.01

Noncorporatecorp.holding 0.30

Promoters 60.18

Public&Others 2.75

SHAREHOLDINGPATTERN

Themanagementremainsconfidentofthenewfiscalinlightoftheincreasingrelevanceofitsbusinessofferingscoupledwithstrategic

investmentsintechnologiesofthefuture.Recently,ithasacquiredthelifesciencesandconsumerservicesarmofMerck,calledC3i

Solutions,inearlyAprilforUSD60million.Inthesamemonth,itannouncedthatithadboughthybriddatamanagementandanalytics

provider Actian Corp for USD 330million, in a joint venturewith private equity firm Sumeru Partners. It continues to look at

acquisitionsasakeypartofgrowthstrategy.

BusinessProfile

HCLTechnologiesisaleadingglobalITservicescompanythathelpsglobalenterprisesre–imagineandtransformtheirbusinesses

throughdigitaltechnologytransformation.HCLoperatesoutof32countries.

InvestmentRationale

Thecompanyhasachieved2milestones.AnnualRevenuescrossedRs50,000croresmarkandquarterlyRevenuesexceedUS$2billion

milestone.Last5yearswereconsistentwithrevenuesgrowingataCAGRof7.5%.EBIThasalsogrownconsistentlyandPAThasgrownfaster.

Thecompanysawstrongclientaddition(onYoYbasis):$5+Mnclientsupby18,$10+Mnclientsupby7,$20+Mnclientsupby2,$40+Mn

clientsupby6,and$50+Mnclientsupby3.Theaditionhasbeeninacrossvariousgeographiesandverticals.

Indollarterms,consolidatedrevenuesforFY'18grewby12.4%andtheEBITmarginat19.7%,bothofwhichhavebeenintheguidedrange.

GuidanceforFY19:FY19Revenuesareexpectedtogrowbetween9.5%to11.5%inConstantCurrencyterms.Theconstantcurrencyguidance

translatesto10.5%to12.5%inUSDtermsbasedonMarch31,2018rates.FY'19expectedOperatingMargin(EBIT)rangeisfrom19.5%to

20.5%.TheOperatingMarginguidanceassumesUSD-INRcurrencyrateof$1=Rs66andothercurrenciesatFY'18averageexchangerates.

WerecommendabuyinthestockofHCLTechforashort-termperspective.The

stockistradingatitsgoodsupportlevelwithgoodfundamentalrecordsandis

expectedtomoveupfromthislevel.Itmadea52weeklowRs.811.11and52

weekhighofRs1106.60.Buyaroundat925.00withaclosingbelowstoplossof

Rs.875.00levelsforthetargetofRs.1035.

BSECode 532281

NSESymbol HCLTECH

Reuters HCLT.BO

Bloomberg HCLTIN

STOCKDATA

1

Note:FollowStrictStopLoss.

HCLTECHNOLOGIESLIMITED RECOMMENDATION:BUY

BuyAround:925.00 SL:875.00 Target:1035.00 Upside:12% Horizon:3Month

BHARATELECTRONICSLIMITED RECOMMENDATION:BUY

CurrentMkt.Price(Rs.) 129.60

FaceValue(Rs.) 1.00

52WeekHigh/Low 192.95/127.05

M.Cap(Rs.inCr.) 7490.07

EPS(Rs.) 6.25

P/ERatio(times) 20.75

P/BRatio(times) 4.08

DividendYield(%) 1.59

StockExchange BSE

VALUEPARAMETERS

(Ason31stMar2018) %OfHolding

Foreign 6.44

Institutions 17.85

Noncorporatecorp.holding 3.36

Promoters 66.79

Public&Others 5.56

SHAREHOLDINGPATTERN

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TheWiththerobustorderbacklog,alongwithabetterexecutionenvironmentprovideshealthyrevenuevisibilityforthecomingyears.

Government’sgreateremphasison‘MakeinIndia’initiativeinDefencesectorprovidesagreatopportunityfortheCompanytoenhance

itsindigenisationeffortsandtoaddresstheopportunitiesinIndianDefencesector.

BusinessProfile

BharatElectronicsLimitedisengagedindesign,manufactureandsupplyofelectronicsproducts/systemsforthedefenserequirements,aswellas

fornondefensemarkets.TheGovernmentofIndiaheld66.79%stakeinthecompanyason31stMarch2018.

InvestmentRationale

ThecompanyplanstocontinueindigenisationeffortsinlinewithMakeinIndia.Itplanstoenhancecapacityandcreatenewtestfacilitiesfor

defencebusinessandarepursuingnewopportunitiesinsolar,energy,homelandsecurity,smartcities,smartcardsandtelecom.

TheCompanyislookingforwardforR&DexpenditurebetweenRs900toRs1,000crore.IthasinitiatedmanyprogrammeswithDRDOand

alsowithinBharatElectronics.Itisworkingonthenextgenerationtacticalmissileprogrammecalledquickreactionsurfacetoairmissile

programme.ThisisajointdevelopmentbetweenBharatElectronics,BDLandDRDO.

BharatElectronicsLimited(BEL)andLarsen&ToubrosignedanMoUonApril11,2018inDefexpo2018atChennaitosharetheirexpertisein

design,development,engineeringandmanufacturingtodevelopandproduceproductsandsystemstomeettherequirementofthedefence

servicesaswellasforexportmarkets.

WerecommendabuyinthestockofBELforashort-termperspective.Thestock

is trading at its good support level with good fundamental records and is

expectedtomoveupfromthislevel.Itmadea52weeklowRs.127.05and52

weekhighofRs192.95. Buyaroundat131withaclosingbelowstoplossofRs.

122levelsforthetargetofRs.151.

BSECode 500049

NSESymbol BEL

Reuters BAJE.BO

Bloomberg BHEIN

STOCKDATA

BuyAround:131.00 SL:122.00 Target:151.00 Upside:15% Horizon:3Month

Note:FollowStrictStopLoss.

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Thecompanyhasatrackrecordofdeliveringrobustfinancialperformance.Factorssuchasrobustloanmix,focusonhighermargin

products,stableassetqualityandrobustearningsvisibilitycontinuetoreinforcegrowthinthecompany.Goingforward,thecompany

islikelytomaintainthesameonthebackofhealthyloangrowthexpectationandexpansioninNIM.Itisalsofocusingonimprovingits

assetsqualitywhichwouldhaveapositiveimpactontheoverallperformanceofthecompany.

BusinessProfile

LICHousingFinanceLimitedisengagedinthehousingfinancebusiness.Itoperatesthroughitssubsidiaries,whichincludeLICHFLCareHomes

Limited,whichisengagedinthebusinessofsettingup,runningandmaintainingassistedlivingcommunitycenter/carehomesforseniorcitizens;

LICHFLFinancialServicesLimited,whichisengagedinthebusinessofmarketingfinancialproductsandservices;LICHFLAssetManagement

CompanyLimited,whichisengagedinbusinessofmanaging,advising,administeringmutualfunds,unittrusts,investmenttrustsandtoactas

financialandinvestmentadvisors,andLICHFLTrusteeCompanyPrivateLimited,whichactsasatrusteetoventurecapitaltrustsandfunds.

InvestmentRationale

Accordingtothemanagementofthecompany,thelaunchofsmallersizedapartments,coupledwithlowerinterestratesandlowinitial

payment,hasgivenapushtotheexpansionofthehomebuyer'sbase.Andthisisaverypositivesignfortheindustry,whichwouldaccelerate

thefinancialgrowthofthecompany.

DuringthequarterMarch31,2018,totaldisbursementsrecordedagrowthof15%fromRs15192croretoRs17402crore.Outofthat,

disbursements in the individual home loan segment registered a 17% growth from Rs 9253 crore to Rs 10838 crore, whereas total

disbursementsinprojectloanswasRs2266croreasagainstRs1232croreforQ4FY17.NetInterestmarginsforQ4FY18stoodat2.49%as

against2.33%forQ3FY18and2.97%forQ4FY17.

Ithasreported2%YoYgrowthinnetinterestincome(NII)toRs3835.01crorefor

12monthsendedMar18andNetinterestmargins(NIM)for12monthsendedMar

18stoodat2.38%asagainst2.7%forthecorrespondingperiod.

23newmarketingofficeswillbeaddedinFY19,highestadditioninsingleyearin

last10years.ThiswillbemainlyinTier3and4locations.

Werecommendabuy in thestockofLICHOUSINGFINANCE fora short-term

perspective.Thestockistradingatitsgoodsupportlevelwithgoodfundamental

recordsandisexpectedtomoveupfromthislevel.Itmadea52weeklowRs.

477.50and52weekhighofRs794.10. Buyaroundat515withaclosingbelow

stoplossofRs.475levelsforthetargetofRs.585.

LICHOUSINGFINANCELIMITED RECOMMENDATION:BUY

BuyAround:515.00 SL:475.00 Target:585.00 Upside:14% Horizon:3Month

CurrentMkt.Price(Rs.) 517.90

FaceValue(Rs.) 2.00

52WeekHigh/Low 794.10/477.50

M.Cap(Rs.inCr.) 26135.82

EPS(Rs.) 39.91

P/ERatio(times) 12.98

P/BRatio(times) 2.04

DividendYield(%) 1.31

StockExchange BSE

VALUEPARAMETERS

(Ason31stMar2018) %OfHolding

Foreign 39.54

Institutions 8.26

Govtholding 0

Noncorporatecorp.holding 2.29

Promoters 40.31

Public&Others 9.61

SHAREHOLDINGPATTERN

BSECode 500253

NSESymbol LICHSGFIN

Reuters LICH.BO

Bloomberg LICHFIN

STOCKDATA

Note:FollowStrictStopLoss.

Improvingpricesanddemandofcementinthesouthernstateswillleadtobetterprofitsforcementmakersbasedintheregionthis

year. Accordingtothemanagementofthecompany,theincrementaldemandwouldleadtobetterutilizationlevelsforthecompany,

which stood at 60percent in the last financial year comparedwith55percent earlier.Moreover, plants inAndhraPradesh and

TelanganaareexpectedtohavebetterutilizationthantheonesinTamilNadu.Thecompanyhasfourplantsacrossboththestates.

DuringtheQ3FY18,ithasreportedacapacityutilizationof70percent.

BusinessProfile

IndiaCementsisoneofthelargestproducersofcementinSouthIndia..TheCompany'sbrandsincludeSankarSuperPower,CoromandelKingand

RaasiGold.TheCompany'splantsarelocatedinvariouslocationsinIndia,includingMalkapur,Vishnupuram,Chilamkur,Yerraguntla,Vallur,

Sankari,Dalavoi,Sankarnagar,BanswaraandParli.TheCompany,basedoncustomerrequirement,alsosuppliesitsbrandsinHigh-density

polyethylene(HDPE),PaperandLaminatedpacking.ItproducesboththevariantsvizBlendedCement,aswellasOrdinaryPortlandCement

underdifferentgrades.

InvestmentRationale

IrrigationprojectsinAndhraPradeshandTelengana,affordablehousing,upcomingelectionsaidinggrowth.

Thecompanyturnedoutasatisfactoryperformanceinthefaceofstiffchallengesandcompetitionarisingoutoftoughmarketconditions.

DuringQ3FY18,theoverallvolumeduringthequarterwas27.26lakhtons.Thenetplantrealizationcamedownbynearly6%ascomparedto

thesecondquarteroftheyearonasequentialbasis.Thevariablecostwasmaintainedasthatofthesecondquarter. Thecompanywill

continuetorationalizemanpowercostandtakesuchpolicydecisionsasmaybenecessarytoreduceoverallstaffcost.

WerecommendabuyinthestockofINDIACEMENTforashort-termperspective.

Thestockistradingatitsgoodsupportlevelwithgoodfundamentalrecordsand

isexpectedtomoveupfromthislevel.Itmadea52weeklowRs.134.70and52

weekhighofRs226.00. Buyaroundat137.00withaclosingbelowstoplossof

Rs.127.00levelsforthetargetofRs.160.

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THEINDIANCEMENTLIMITED RECOMMENDATION:BUY

BuyAround:137.00 SL:127.00 Target:160.00 Upside:17% Horizon:3Month

CurrentMkt.Price(Rs.) 135.25

FaceValue(Rs.) 10.00

52WeekHigh/Low 226.00/134.70

M.Cap(Rs.inCr.) 4177.35

EPS(Rs.) 4.86

P/ERatio(times) 27.82

P/BRatio(times) 0.81

DividendYield(%) 0.74

StockExchange BSE

VALUEPARAMETERS

(Ason31stMar2018) %OfHolding

Foreign 19.63

Institutions 28.18

Noncorporatecorp.holding 9.39

Promoters 28.21

Public&Others 14.59

SHAREHOLDINGPATTERN

BSECode 530005

NSESymbol INDIACEM

Reuters ICMN.BO

Bloomberg ICEMIN

STOCKDATA

Note:FollowStrictStopLoss.

DuringQ4,FY18,itposts82%sequentialincreaseinQ4netprofitforFY18.Accordingtothemanagementofthecompany,therecent

launchofliquidityenhancementschemeisexpectedtoprovidethemuch-neededimpetustothegrowthanddevelopmentofthis

nascentproduct,whichwillremainourfocusinthefirsthalfofthisfinancialyearFy19.

BusinessProfile

MCXisIndia'sfirstlisted,national-level,electronic,commodityfuturesexchangewithpermanentrecognitionfromtheGovernmentofIndia.

VariouscommoditiesacrosssegmentsaretradedonMCX.Theseincludebullion,energy,metalsandagricommodities.

InvestmentRationale

Ithasreported56.39percentgrowthinnetprofitfortheMarchquarteratRs34.14crore.Totalincomegrew11percenttoRs96.58crore

duringthequarter4,FY18,

The average daily turnover (ADT) in commodity futures increased by 22.57% to Rs.23, 824 crore during Q4 FY2018 vis-a-vis the

correspondingquarterofFY2017.

DuringFY2018theExchange’smarketshareincommodityderivativespacestoodat89.58%.

Theaveragedailyturnover(ADT)incommodityoptionsduringFY2018wasRs.82.71crore.

MCXoffersthebenefitsoffairpricediscoveryandpriceriskmanagementtotheIndiancommoditymarketecosystem.Variouscommodities

acrosssegmentsaretradedontheExchangeplatform.Theseincludebullion,energy,metalsandagricommodities.

WerecommendabuyinthestockofMCXforashort-termperspective.Thestock

is trading at its good support level with good fundamental records and is

expectedtomoveupfromthislevel.Itmadea52weeklowRs.665.00and52

weekhighofRs1181.90.Buyaroundat764.00withaclosingbelowstoplossof

Rs.709.00levelsforthetargetofRs.873.00.

5

MULTICOMMODITYEXCHANGEOFINDIA RECOMMENDATION:BUY

BuyAround:764.00 SL:709.00 Target:873.00 Upside:17% Horizon:3Month

CurrentMkt.Price(Rs.) 750.00

FaceValue(Rs.) 10.00

52WeekHigh/Low 1181.90/665.00

M.Cap(Rs.inCr.) 3825.00

EPS(Rs.) 21.25

P/ERatio(times) 35.30

P/BRatio(times) 2.77

DividendYield(%) 2.27

StockExchange BSE

VALUEPARAMETERS

(Ason31stMar2018) %OfHolding

Foreign 28.18

Institutions 38.65

Noncorporatecorp.holding 6.53

Promoters 0

Public&Others 26.63

SHAREHOLDINGPATTERN

BSECode 534091

NSESymbol MCX

Reuters MCEIqf.BO

Bloomberg MCXIN

STOCKDATA

Note:FollowStrictStopLoss.

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