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IndiaRev val

Rising Stars Investor Conference 2017

22nd to 24th March 2017 | Quest Offices, BKC, Mumbai

Pre-Conference Notes

2 March 20, 2017

Rising Star Investor Conference 2017

THIS PAGE IS INTENTIONALLY LEFT BLANK


March 20, 2017 3

Contents

Page No.

Participating Companies on 22nd March

Allcargo Logistics ................................................................................................... 5

Blue Dart Express .................................................................................................. 7

Bodal Chemicals .................................................................................................... 9

Dwarikesh Sugar Industries ................................................................................. 11

Filatex India ......................................................................................................... 13

Hinduja Global Solutions ..................................................................................... 15

I G Petrochemicals .............................................................................................. 17

Ortel Communications ........................................................................................ 19

Shree Pushkar Chem. & Fert. .............................................................................. 21

Waterbase ........................................................................................................... 23

Participating Companies on 23rd March

Dhampur Sugar Mills ........................................................................................... 27

KEC International ................................................................................................ 29

KEI Industries ....................................................................................................... 31

Manpasand Beverages ........................................................................................ 33

Prabhat Dairy ...................................................................................................... 35

Royal Orchid Hotels ............................................................................................. 37

SREI Infrastructure Finance ................................................................................. 39

Participating Companies on 24th March

Apcotex Industries .............................................................................................. 43

Balrampur Chini Mills .......................................................................................... 45

Banswara Syntex ................................................................................................. 47

Container Corporation of India ........................................................................... 49

Insecticides (India) .............................................................................................. 51

Mahindra CIE Automotive ................................................................................... 53

Navneet Education .............................................................................................. 55

Nila Infrastructures ............................................................................................. 57

Shakti Pumps (India) ........................................................................................... 59

Sutlej Textiles & Industries .................................................................................. 61

Vipul .................................................................................................................... 63

(Prices as on March 17, 2017)

Prabhudas Lilladher Pvt. Ltd. and/or its associates (the 'Firm') does and/or seeks to do business with companies covered in its research reports. As a result investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of the report. Investors should consider this report as only a single factor in making their investment decision.

Please refer to important disclosures and disclaimers at the end of the report


4 March 20, 2017

March 22

Allcargo Logistics

CMP: Rs169 Shares o/s: 245.9m Mcap: Rs41.6bn

March 20, 2017

Pre‐Conference Note

March 20, 2017 5

Management Representative: Mr. Prakash Tulsiani Executive Director & COO Mr. Jatin Chokshi CFO

Trading data

52 Week High (Rs) 222

52 Week Low (Rs) 143

3M Avg. Daily value (Rs m) 18.2

Major shareholders

Promoters 70.06%

Foreign 24.60%

Domestic Inst. 0.22%

Public & Other 5.12%

Stock Performance

(%) 1M 6M 12M

Absolute 2.9 (12.8) 7.3

Relative (1.2) (16.5) (12.9)

Price Performance (RIC: ACLL.BO, BB: AGLL IN)

Source: Bloomberg

0

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Allcargo Logistics Ltd (AGL), a port‐based logistics company founded by Mr. Shashi Kiran Shetty, engaged in providing specialised logistics services across Multimodal transport operations (MTO), container freight station operations (CFS), third‐party logistics operations and project and engineering solutions (PES). Strong domestic presence across CFS and Project Engineering space bodes well for AGL as it benefits from the domestic capex cycle recovery and strong EXIM trade.

AGL has planned for capex of Rs4bn on Jhajjar logistics park (in Haryana over the next 2‐3 years). The final call on it will only be taken once the approval for Rail connectivity is received. We like AGL for its consistent cash generation & strong management bandwidth, however considering the lack‐lustre earnings in FY17 &

most capex to bear fruits only from FY18‐19, we expect it to be a market performer.

MTO Business growing in volumes despite sluggish global trade: Performance

in MTO segment has been robust with a 9.8% volume growth in 9MFY17 period

despite weak global growth, as AGL primarily operates in LCL segment which is

lesser impacted compared to the FCL trade. However, margins are sluggish due

to pressure on freight rates.

CFS business to be impacted due to DPD: With a capacity to handle 0.5m TEUs

per annum, AGL’s CFS division has delivered strong operating cash flows over

FY12‐FY17E period (average EBIT of ~Rs1.25bn for the last six years). However,

CFS business is expected to struggle due to port targets of 40% DPD over the

next 6 months

PES business continues to struggle: Persisting slowdown in Project logistics and

weak performance in shipping division continues to drag this segment. We

expect 12% de‐growth in revenues and margin contraction of 180bps YoY to

10.7% for FY17.

Key financials (Y/e March) 2016 2017E 2018E 2019E

Revenues (Rs m) 56,879 56,985 61,464 67,638

Growth (%) 1.1 0.2 7.9 10.0

EBITDA (Rs m) 5,220 4,839 5,785 6,400

PAT (Rs m) 2,783 2,425 2,877 3,144

EPS (Rs) 11.0 9.9 11.7 12.8

Growth (%) 16.1 (10.6) 18.6 9.3

Net DPS (Rs) 1.5 1.0 3.0 3.5

Profitability & Valuation 2016 2017E 2018E 2019E

EBITDA margin (%) 9.2 8.5 9.4 9.5

RoE (%) 13.5 12.2 15.3 15.0

RoCE (%) 14.3 13.5 17.9 13.6

EV / sales (x) 0.8 0.8 0.7 0.6

EV / EBITDA (x) 8.8 9.2 7.3 6.2

PE (x) 15.4 17.2 14.5 13.2

P / BV (x) 1.9 2.3 2.1 1.9

Net dividend yield (%) 0.9 0.6 1.8 2.1

Source: Company Data; PL Research

6 March 20, 2017

Allcargo Logistics

Income Statement (Rs m)

Y/e March 2016 2017E 2018E 2019E

Net Revenue 56,879 56,985 61,464 67,638

Raw Material Expenses 38,124 38,327 40,820 45,301

Gross Profit 18,756 18,658 20,644 22,337

Employee Cost 9,256 9,669 10,249 10,864

Other Expenses 4,280 4,150 4,610 5,073

EBITDA 5,220 4,839 5,785 6,400

Depr. & Amortization 1,529 1,700 1,880 1,988

Net Interest 425 304 250 189

Other Income 263 369 300 317

Profit before Tax 3,530 3,204 3,955 4,540

Total Tax 700 769 1,028 1,271

Profit after Tax 2,830 2,435 2,927 3,269

Ex‐Od items / Min. Int. 125 150 230 169

Adj. PAT 2,783 2,425 2,877 3,144

Avg. Shares O/S (m) 252.3 245.9 245.9 245.9

EPS (Rs.) 11.0 9.9 11.7 12.8

Cash Flow Abstract (Rs m)

Y/e March 2016 2017E 2018E 2019E

C/F from Operations 4,484 4,265 4,864 5,074

C/F from Investing (2,213) (2,409) (2,230) (1,669)

C/F from Financing (2,182) (1,674) (1,849) (2,060)

Inc. / Dec. in Cash 89 182 785 1,345

Opening Cash 1,825 1,914 2,345 3,131

Closing Cash 1,914 2,345 3,131 4,726

FCFF 3,204 302 3,146 3,961

FCFE 2,498 131 2,096 2,761

Key Financial Metrics

Y/e March 2016 2017E 2018E 2019E

Growth

Revenue (%) 1.1 0.2 7.9 10.0

EBITDA (%) 9.8 (7.3) 19.6 10.6

PAT (%) 16.0 (12.9) 18.6 9.3

EPS (%) 16.1 (10.6) 18.6 9.3

Profitability

EBITDA Margin (%) 9.2 8.5 9.4 9.5

PAT Margin (%) 4.9 4.3 4.7 4.6

RoCE (%) 14.3 13.5 17.9 13.6

RoE (%) 13.5 12.2 15.3 15.0

Balance Sheet

Net Debt : Equity 0.1 0.1 — (0.1)

Net Wrkng Cap. (days) (5) (4) (5) (12)

Valuation

PER (x) 15.4 17.2 14.5 13.2

P / B (x) 1.9 2.3 2.1 1.9

EV / EBITDA (x) 8.8 9.2 7.3 6.2

EV / Sales (x) 0.8 0.8 0.7 0.6

Earnings Quality

Eff. Tax Rate 19.8 24.0 26.0 28.0

Other Inc / PBT 7.5 11.5 7.6 7.0

Eff. Depr. Rate (%) 7.2 6.7 6.9 6.9

FCFE / PAT 89.8 5.4 72.8 87.8

Source: Company Data, PL Research.

Balance Sheet Abstract (Rs m)

Y/e March 2016 2017E 2018E 2019E

Shareholder's Funds 22,063 17,832 19,860 22,032

Total Debt 5,388 5,217 4,167 2,967

Other Liabilities 1,328 1,809 1,937 2,078

Total Liabilities 28,780 24,857 25,964 27,077

Net Fixed Assets 12,716 14,777 15,265 14,777

Goodwill 9,049 2,820 2,820 2,820

Investments 3,495 3,598 3,737 3,883

Net Current Assets 3,520 3,663 4,141 5,597

Cash & Equivalents 2,069 2,505 3,340 5,124

Other Current Assets 9,432 10,097 10,842 11,831

Current Liabilities 7,981 8,938 10,041 11,358

Other Assets — — — —

Total Assets 28,780 24,857 25,964 27,077

Quarterly Financials (Rs m)

Y/e March Q1FY17 Q2FY17 Q3FY17 Q4FY17E

Net Revenue 13,989 14,102 14,114 14,343

EBITDA 1,332 1,269 993 1,245

% of revenue 9.5 9.0 7.0 8.7

Depr. & Amortization 436 434 407 424

Net Interest 75 75 78 75

Other Income 59 62 183 65

Profit before Tax 880 822 691 811

Total Tax 256 178 211 178

Profit after Tax 610 644 492 679

Adj. PAT 610 644 492 679

Key Operating Metrics

Y/e March 2016 2017E 2018E 2019E

Segment Revenues

MTO 47,190 48,035 52,538 57,609

CFS 4,303 4,425 4,365 5,239

PES 5,158 4,525 4,562 4,790

EBIT

MTO 2,393 1,955 2,259 2,482

CFS 1,371 1,338 1,353 1,624

PES 644 484 593 623

Capital Employed

MTO 12,763 8,033 8,434 9,434

CFS 4,359 7,259 9,259 10,259

PES 7,034 7,110 6,600 6,300

Others 4,661 3,750 4,050 2,550


Blue Dart Express

CMP: Rs5,046 Shares o/s: 23.7m Mcap: Rs119.8bn

March 20, 2017


March 20, 2017 7

Management Representative: Mr. Rajesh Joshi GM – Finance & CS

Trading data

52 Week High (Rs) 6,413

52 Week Low (Rs) 4,162


Major shareholders

Promoters 75.00%

Foreign 7.42%



Stock Performance

(%) 1M 6M 12M

Absolute 18.4 (7.3) (7.5)

Relative 15.3 (11.6) (27.8)

Price Performance (RIC: BLDT.BO, BB: BDE IN)

0

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Source: Bloomberg

Blue Dart Express (BDE) is engaged in the business of distribution of time sensitive packages to various destinations, primarily within India. The Company offers delivery of consignments to ~34,680 locations in India and serves approximately 220 countries and territories across the world. Almost 80% revenues are currently from Air cargo and 20% from Surface transportation. BDE is amongst the key beneficiaries of the impending rollout of GST and the E‐tailing opportunity unfolding over the next decade which can again kick‐start the growth engine from

FY18 to around 13‐15%/annum for 3‐5 years.

Leader in Express Air cargo with 45% market share: BDE is an undisputed leader

in ~Rs50bn domestic express air cargo service with 45% market share in the

country. The segment is characterized by high value, low volume and

contributes ~80% of BDE’s top‐line. Robust infrastructure of 7 air network

stations at strategic locations across the country, 6 B‐757s cargo aircrafts with

capacity of 60tonnes/night capacity and use of latest technology helps it achieve

time dedicated deliveries effectively

E‐commerce opens up new opportunities: Current e‐commerce industry in

India is ~USD5.4bn which is estimated to grow 5x to reach USD29bn by 2020 and

BDE is a strong contender to get benefit out of this growth on the back of its

reach and experience in the industry. Company currently manages 130k

packets/days on an average and has all major E‐tailers in their clientele.

FY17 is a challenge, GST expected to kick‐start growth of 13‐15% from FY18:

FY17 is looking challenging for the industry and BDE expects that it will take

some time to improve the situation on ground. However, it expects a 13‐15%

top‐line growth for next 3‐5 years from FY18 once GST gets implemented.

Margins has the potential to improve by 100‐150bps over the next 3‐4 years

considering volume growth to help kick in some operating leverage

Key financials (Y/e March) 15M2013 2014 2015 2016

Revenues (Rs m) 21,717 19,383 22,722 25,645

Growth (%) 45.2 (10.7) 17.2 12.9

EBITDA (Rs m) 2,688 1,741 2,242 3,817

PAT (Rs m) 1,933 1,226 1,293 1,928

EPS (Rs) 81.4 51.7 54.5 81.2

Growth (%) 0.1 0.1 0.1 0.1

Net DPS (Rs) 71.0 50.0 20.0 30.0

Profitability & Valuation 15M2013 2014 2015 2016

EBITDA margin (%) 12.4 9.0 9.9 14.9

RoE (%) 29.2 18.8 27.2 47.0

RoCE (%) 28.8 18.6 21.0 29.9

EV / sales (x) 5.4 6.1 5.3 7.0

EV / EBITDA (x) 43.6 68.1 54.1 31.6

PE (x) 61.9 97.5 92.5 62.0

P / BV (x) 18.1 18.6 38.9 23.3



8 March 20, 2017

Blue Dart Express


Y/e March 15M2013 2014 2015 2016

Net Revenue 21,717 19,383 22,722 25,645


Gross Profit 7,610 6,105 7,542 11,912

Employee Cost 3,002 2,666 3,216 5,009

Other Expenses 1,920 1,698 2,083 3,086

EBITDA 2,688 1,741 2,242 3,817



Other Income


Total Tax 834 635 669 1,014

Profit after Tax 1,933 1,226 1,293 1,928


Adj. PAT 1,933 1,226 1,293 1,928

Avg. Shares O/S (m) 23.7 23.7 23.7 23.7

EPS (Rs.) 81.4 51.7 54.5 81.2


Y/e March 15M2013 2014 2015 2016


C/F from Investing 246 385 319 (1,392)

C/F from Financing (55) (2,943) (1,255) (898)

Inc. / Dec. in Cash 2,020 (1,357) 598 1,206

Opening Cash 400 2,420 1,064 1,672

Closing Cash 2,420 1,064 1,661 2,878

FCFF 2,075 1,586 1,853 2,104


Y/e March 15M2013 2014 2015 2016

Growth

Revenue (%) 45.2 (10.7) 17.2 (24.2)

EBITDA (%) 49.5 (35.2) 28.8 70.2

PAT (%) 55.6 (36.6) 5.5 49.0

EPS (%) 57.4 (36.6) 5.5 49.0

Profitability

EBITDA Margin (%) 12.4 9.0 9.9 22.2

PAT Margin (%) 8.9 6.3 5.7 11.2

RoCE (%) 28.8 18.6 21.0 29.9

RoE (%) 29.2 18.8 27.2 47.0

Balance Sheet

Net Debt : Equity (0.4) (0.2) 0.5 0.3

Net Wrkng Cap. (days) 24.7 30.0 26.4 23.7

Valuation

PER (x) 61.9 97.5 92.5 62.0

P / B (x) 18.1 18.6 38.9 23.3

EV / EBITDA (x) 43.6 68.1 54.1 31.6

EV / Sales (x) 5.4 6.1 5.3 7.0

Earnings Quality

Eff. Tax Rate 30.4 34.4 34.5 34.4

Eff. Depr. Rate (%) 10.4 7.8 14.4 10.5



Y/e March 15M2013 2014 2015 2016


Total Debt 0 0 3,322 3,922

Other Liabilities 245 269 250 533


Net Fixed Assets 2,329 2,365 2,410 5,259

Goodwill ‐ ‐ ‐ ‐

Investments 2,928 2,607 2,101 1,149





Other Assets 3 1 48 89

Total Assets 6,844 6,698 6,645 8,596


Y/e March Q4FY16 Q1FY17 Q2FY17 Q3FY17

Net Revenue 6,297 6,214 6,632 7,200

EBITDA 708 771 748 577

% of revenue 11.2 12.4 11.3 8.0





Total Tax 214 227 202 171


Adj. PAT 426 441 428 282


Bodal Chemicals


March 20, 2017


March 20, 2017 9

Management Representative: Mr. Ankit Patel Executive Director Mr. Mayur Padhya CFO

Trading data


52 Week Low (Rs) 61


Major shareholders

Promoters 65.55%

Foreign 4.42%



Stock Performance

(%) 1M 6M 12M

Absolute 2.1 0.9 113.7

Relative (1.6) (3.3) 91.8

Price Performance (RIC: BODA.BO,BB: BODL IN)

020406080

100120140160180

Mar‐16

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(Rs)

Source: Bloomberg

Global player in dye intermediates: Bodal Chemicals (BCL) is an Integrated and

leading dye manufacturing company with presence in more than 50 countries

globally. It is among one of the large manufacturer and exporter of Dye

Intermediate and Dyestuff. The company's products have wide usage in diverse

industries such as Textile, Paper, Plastic, Leather as well as many other speciality

chemicals.

Integrated business model: BCL is the only large scale company in India that

operates across the value chain of dyes industry from basic chemicals to dye

intermediates and dyestuff. 40% dye intermediate requirement for dyestuff

production is sourced internally.

New capacity expansion to be commissioned in FY18: BCL plans to commission

the expanded dyestuff capacity of 8,000MTPA (total capacity likely at

24,000MTPA over the next 3‐4 years) by FY18. Total capex of the project is

Rs280m and will be funded through internal accruals. Besides, the company has

taken 42% stake in Trion Chemicals which will produce chemicals targeted for

water treatment.

Healthy earnings growth traction: Of BCL’s 9MFY17 revenues of Rs9bn, ~60%

was generated from dye intermediates while dye stuff and basic chemicals

contributed 25% and 11% respectively. Driven by better price realisation in dye

intermediate segments coupled with increased demand traction, operating

profits grew 38%YoY while PAT has registered 51%YoY growth to Rs964m for

9MFY17. Debt/Equity for the company remains comfortable at 0.42x as at

Q3FY17.

Key financials (Y/e March) 2013 2014 2015 2016

Revenues (Rs m) 5,275 9,595 10,453 9,100

Growth (%) (14.1) 81.9 8.9 (12.9)

EBITDA (Rs m) 198 1,888 1,841 1,498

PAT (Rs m) (232) 1,039 918 792

EPS (Rs) (2.1) 2.8 8.4 7.9

Growth (%) NA NA 204.3 (6.3)

Net DPS (Rs) ‐ ‐ ‐ 0.6

Profitability & Valuation 2013 2014 2015 2016

EBITDA margin (%) 3.7 19.7 17.6 16.5

RoE (%) (49.7) 60.5 82.9 44.0

RoCE (%) 1.8 21.7 39.1 37.2

EV / sales (x) 3.9 1.9 1.6 1.8

EV / EBITDA (x) 105.4 9.7 9.3 10.9

PE (x) NA 49.7 16.3 17.4

P / BV (x) 43.0 23.1 9.6 6.4

Net dividend yield (%) ‐ ‐ ‐ 0.4


10 March 20, 2017

Bodal Chemicals


Y/e March 2013 2014 2015 2016

Net Revenue 5,275 9,595 10,453 9,100


Gross Profit 1,539 3,421 3,874 3,394

Employee Cost 320 380 590 516

Other Expenses 1,021 1,152 1,443 1,380

EBITDA 198 1,888 1,841 1,498


Net Interest 401 469 273 122


Profit before Tax (329) 1,203 1,392 1,238

Total Tax (97) 164 474 445

Profit after Tax (232) 1,039 918 792

Ex‐Od items / Min. Int. ‐ (737) ‐ 68

Adj. PAT (232) 302 918 860

Avg. Shares O/S (m) 109 109 109 109

EPS (Rs.) (2.1) 2.8 8.4 7.9


Y/e March 2013 2014 2015 2016

C/F from Operations 142 492 1,977 1,312

C/F from Investing (23) (166) (353) (226)

C/F from Financing (131) (321) (1,621) (1,094)

Inc. / Dec. in Cash (12) 5 2 (7)

Opening Cash 16 4 10 12

Closing Cash 4 10 12 5

FCFF (190) (866) 1,224 1,016

FCFE (472) (1,170) 1,045 935


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) (14.1) 81.9 8.9 (12.9)

EBITDA (%) 483.0 855.5 (2.5) (18.6)

PAT (%) 0.0 (548.8) (11.7) (13.7)

EPS (%) NA NA 204.3 (6.3)

Profitability

EBITDA Margin (%) 3.7 19.7 17.6 16.5

PAT Margin (%) (4.4) 10.8 8.8 8.7

RoCE (%) 1.8 21.7 39.1 37.2

RoE (%) (49.7) 60.5 82.9 44.0

Balance Sheet

Net Debt : Equity 11.6 3.8 1.1 0.6


Valuation

PER (x) NA 49.7 16.3 17.4

P / B (x) 43.0 23.1 9.6 6.4

EV / EBITDA (x) 105.4 9.7 9.3 10.9

EV / Sales (x) 3.9 1.9 1.6 1.8

Earnings Quality

Eff. Tax Rate 29.6 13.7 34.1 36.0

Other Inc / PBT (11.9) 3.1 3.3 9.7

Eff. Depr. Rate (%) 4.6 7.0 5.5 6.0

FCFE / PAT (4.0) (0.5) 2.7 2.4



Y/e March 2013 2014 2015 2016

Shareholder's Funds 504 899 1,815 2,346

Total Debt 3,480 3,717 2,088 1,429

Other Liabilities (19) (1) 123 154


Net Fixed Assets 2,653 1,768 1,931 1,922


Investments 7 7 18 16


Cash & Equivalents 38 34 31 39


Current Liabilities 748 1,311 1,316 1,170


Total Assets 3,964 4,615 4,026 3,929



Net Revenue 2,056 2,705 3,310 2,757

EBITDA 305 565 585 528

% of revenue 14.8 20.9 17.7 19.1





Total Tax 123 171 181 175


Adj. PAT 226 322 340 316


Dwarikesh Sugar Industries


March 20, 2017


March 20, 2017 11

Management Representative: Mr. Vijay S Banka CFO

Trading data




Major shareholders

Promoters 42.00%

Foreign 1.39%



Stock Performance

(%) 1M 6M 12M

Absolute 2.9 61.7 118.4

Relative (0.2) 57.4 98.0

Price Performance (RIC: DWAR.BO, BB: DSIL IN)

0

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Source: Bloomberg

Dwarikesh Sugar (DSIL) has a capacity of 21500 TCD of sugar, 86MW of cogen power and 300KLPD of distillery which continue to provide alternate revenue streams and some cushion against cyclicality in the sugar business. The company also has efficient operations and locational advantage arising out of two units being located in Bijnor District of U.P, (favourable soil conditions) which results in better recovery rates. During SY16, the Dwarikesh Puram plant of DSIL has reported recovery rate of 12.12%. Increase in the sugar realizations since Aug, 2015 coupled with improved sales from distillery division resulted in increase in operating profitability to 13.6% in FY16 from 7.6% in FY15. Improving financial performance has also aided to reduce farm arrears to nil as at end Dec‐16.

Healthy realizations of Rs34.7/kg in 9MFY17 have aided profitability: Healthy

realizations during 9MFY17 continued to improve the operating profitability

from 6.4% in 9MFY16 to 20.3% in 9MFY17. Further, the realizations are

expected to remain steady supported by stock correction in SY16 coupled with

the expectation of decline in sugar production in SY17. This is likely to improve

the financial performance in FY17, despite a Rs25/qtl increase in cane SAP

supported by continued healthy recovery levels

Improvement in financial position due to rise in profitability and QIP: Equity

infusion of Rs 594m in the form of QIP along with healthy cash accruals is

auguring well for the capital structure of DSIL. As against the scheduled debt

repayment of Rs643m in FY17, DSIL has already prepaid Rs965m and expects to

prepay another Rs281m during H2FY2017 leading to significant reduction of the

long term debt outstanding (Rs1.94bn debt as on end Q3FY17).

Key financials (Y/e March) 2012 2013 18M2015 2016

Revenues (Rs m) 6,986 9,276 11,284 7,943

Growth (%) ‐ 32.8 NA (29.6)

EBITDA (Rs m) 939 587 855 1,082

PAT (Rs m) (113) (194) (168) 340

EPS (Rs) (6.9) (11.9) (10.3) 23.9

Growth (%) ‐ 71.2 NA (332.6)

Net DPS (Rs) 0.0 0.0 0.0 0.0

Profitability & Valuation 2012 2013 18M2015 2016

EBITDA margin (%) 13.4 6.3 7.6 13.6

RoE (%) ‐ (15.8) (14.9) 35.3

RoCE (%) ‐ 2.7 3.9 10.2

EV / sales (x) 1.8 1.2 1.2 1.7

EV / EBITDA (x) 13.2 18.9 15.7 12.6

PE (x) (63.5) (37.1) (42.9) 18.4

P / BV (x) 5.7 6.0 6.9 6.1



12 March 20, 2017

Dwarikesh Sugar Industries


Y/e March 2012 2013 18M2015 2016

Net Revenue 6,986 9,276 11,284 7,943


Gross Profit 1,601 1,400 2,109 2,057


Other Expenses 281 410 539 478

EBITDA 939 587 855 1,082


Net Interest 789 706 752 516


Profit before Tax (156) (319) (266) 394

Total Tax (43) (126) (98) 4

Profit after Tax (113) (194) (168) 390

Ex‐Od items / Min. Int. ‐ ‐ ‐ 49

Adj. PAT (113) (194) (168) 340

Avg. Shares O/S (m) 16.3 16.3 16.3 16.3

EPS (Rs.) (6.9) (11.9) (10.3) 23.9


Y/e March 2012 2013 18M2015 2016

C/F from Operations 78 2,033 (1,507) 367


C/F from Financing (44) (1,990) 1,538 (197)

Inc. / Dec. in Cash 8 8 (13) 40




Y/e March 2012 2013 18M2015 2016

Growth

Revenue (%) ‐ 32.8 NA (29.6)

EBITDA (%) ‐ (37.5) NA 26.5

PAT (%) ‐ 71.2 NA (332.6)

EPS (%) ‐ 71.2 NA (332.6)

Profitability

EBITDA Margin (%) 13.4 6.3 7.6 13.6

PAT Margin (%) (1.6) (2.1) (1.5) 4.9

RoCE (%) ‐ 2.7 3.9 10.2

RoE (%) ‐ (15.8) (14.9) 35.3

Balance Sheet

Net Debt : Equity 4.2 3.2 6.0 5.6

Net Wrkng Cap. (days) 134 38 108 211

Valuation

PER (x) (63.5) (37.1) (42.9) 18.4

P / B (x) 5.7 6.0 6.9 6.1

EV / EBITDA (x) 13.2 18.9 15.7 12.6

EV / Sales (x) 1.8 1.2 1.2 1.7

Earnings Quality

Eff. Tax Rate 27.7 39.3 37.0 1.1

Other Inc / PBT (13.8) (41.1) (38.9) 21.9

Eff. Depr. Rate (%) 4.8 4.8 6.8 4.3

FCFE / PAT



Y/e March 2012 2013 18M2015 2016


Total Debt 5,250 3,922 6,244 6,556



Net Fixed Assets 4,700 4,404 3,986 3,567

Goodwill


Net Current Assets 1,910 631 2,822 3,989





Total Assets 6,741 5,252 7,432 7,893



Net Revenue 2,305 2,863 2,427 2,205

EBITDA 722 523 448 547

% of revenue 31.3 18.3 18.5 24.8



Other Income (37) 18 107 18


Total Tax 4 ‐ ‐ ‐


Adj. PAT 479 319 374 423


Filatex India


March 20, 2017


March 20, 2017 13

Management Representative: Mr. Madhu Sudhan Bhageria MD

Trading data


52 Week Low (Rs) 35


Major shareholders

Promoters 57.99%

Foreign 0.00%



Stock Performance

(%) 1M 6M 12M

Absolute 64.7 71.2 209.8

Relative 61.6 66.9 189.4

Price Performance (RIC: FLTX.BO, BB: FLTX IN)

0

20

40

60

80

100

120

140

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Filatex India (FIL) promoted by the Bhageria family, is involved in the business of manufacturing polyester and polypropylene multifilament yarns (commonly known as PFY) at its Dadra Plant and Polyester, nylon and polypropylene monofilament yarns at its Noida Plant. FIL is one of the pioneers in manufacturing Monofilament Yarns for Zippers, Tooth Brush Bristles, Velcro, Magic Fasteners and Forming Fabrics in India. The company has its own marketing offices at all the major market areas viz. Delhi, Mumbai and Surat. While, the major customers and exports are directly handled by the company’s marketing offices, small customers are catered through a net work of dealers.

Capacity addition of value added products: FIL completed capacity expansion of

115 TPD of Fully Drawn Yarn (FDY) and 200 TPD of Draw Textured Yarn in Sep

2016. Increased share of value added products in the overall product mix has

resulted in significant growth in revenues and profitability during 9MFY17

Location advantage to save cost: FIL manufacturing facilities at Dadra and Dahej

are located near major textile markets of Surat, Silvassa & Bhiwandi. Also, PTA

which is a major raw material is sourced from Reliance at Dahej and imported

raw material is procured through Hazira Port leading to savings in logistics cost

Initiated further round of capacity addition: FIL has initiated a capacity

expansion of 190 TPD of Bright Polyester Fully Drawn Yarn, 50 TPD of Semi Dull

Fully Drawn Yarn (LBS), 25 TPD of Bright Polyester POY and 85 TPD of Bright

Chips at an estimated capital outlay of Rs. 330 crores at the existing Plant in

Dahej. The Financial approvals are in place and the Company expects to

commence commercial production in Q4FY18.


Revenues (Rs m) 12,318 17,694 15,728 12,782

Growth (%) 160.2 43.6 (11.1) (18.7)

EBITDA (Rs m) 450 422 789 879

PAT (Rs m) 24 (81) 96 193

EPS (Rs) 1.0 (2.9) 3.0 8.2

Growth (%) NA NA NA 172.9

Net DPS (Rs) 0.0 0.0 1.5 0.0


EBITDA margin (%) 3.7 2.4 5.0 6.9

RoE (%) 1.6 (5.3) 5.9 13.8

RoCE (%) 3.0 2.0 6.7 8.3

EV / sales (x) 0.5 0.4 0.5 0.7

EV / EBITDA (x) 13.6 17.0 9.9 9.7

PE (x) 118.8 (40.8) 39.0 14.3

P / BV (x) 1.9 2.1 2.2 1.8

Net dividend yield (%) ‐ ‐ ‐ ‐


14 March 20, 2017

Filatex india


Y/e March 2013 2014 2015 2016

Net Revenue 12,318 17,694 15,728 12,782


Gross Profit 1,456 1,955 2,228 2,265


Other Expenses 742 1,216 1,085 986

EBITDA 450 422 789 879


Net Interest 226 400 536 512


Profit before Tax 39 (115) 144 326

Total Tax 15 (34) 48 64

Profit after Tax 24 (81) 96 262


Adj. PAT 24 (81) 96 193

Avg. Shares O/S (m) 24.0 28.2 32.0 32.0

EPS (Rs.) 1.0 (2.9) 3.0 8.2


Y/e March 2013 2014 2015 2016

C/F from Operations (3) (359) 277 631

C/F from Investing (720) (255) 13 (1,122)

C/F from Financing 1,246 83 (308) 500

Inc. / Dec. in Cash 522 (531) (19) 10




Y/e March 2013 2014 2015 2016

Growth

Revenue (%) 160.2 43.6 (11.1) (18.7)

EBITDA (%) 38.6 (6.1) 86.9 11.4

PAT (%) (82.8) (442.3) (218.8) 172.9

EPS (%) NA NA NA 172.9

Profitability

EBITDA Margin (%) 3.7 2.4 5.0 6.9

PAT Margin (%) 0.2 (0.5) 0.6 2.1

RoCE (%) 3.0 2.0 6.7 8.3

RoE (%) 1.6 (5.3) 5.9 13.8

Balance Sheet

Net Debt : Equity 2.2 2.5 2.4 2.3


Valuation

PER (x) 118.8 NA 39.0 14.3

P / B (x) 1.9 2.1 2.2 1.8

EV / EBITDA (x) 13.6 17.0 9.9 9.7

EV / Sales (x) 0.5 0.4 0.5 0.7

Earnings Quality

Eff. Tax Rate 39.0 29.6 33.3 19.6

Other Inc / PBT 1.9 0.8 1.0 1.4

Eff. Depr. Rate (%) 37.4 45.1 33.4 32.8



Y/e March 2013 2014 2015 2016


Total Debt 4,029 4,210 4,194 4,904



Net Fixed Assets 4,028 3,994 3,906 5,104

Goodwill







Total Assets 5,713 5,906 6,155 7,330



Net Revenue 3,494 3,512 3,826 3,681

EBITDA 280 304 342 297

% of revenue 8.0 8.7 8.9 8.1


Net Interest 128 132 151 164



Total Tax (9) 36 40 18


Adj. PAT 136 95 114 72


Hinduja Global Solutions


March 20, 2017


March 20, 2017 15

Management Representative: Mr. Srinivas Palakodeti CFO

Trading data




Major shareholders

Promoters 67.64%

Foreign 7.61%



Stock Performance

(%) 1M 6M 12M

Absolute (2.5) 9.4 54.7

Relative (5.6) 5.1 34.4

Price Performance (RIC: HGSL.BO, BB: HGSL IN)

0

100

200

300

400

500

600

700

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Hinduja Global Solutions (HGS) provides a full suite of business process management (BPM) services from traditional voice contact center services and transformational DigiCX services that are unifying customer engagement to platform‐based, back‐office services and digital marketing solutions. HGS’s expertise span across the telecommunications and media, healthcare, insurance, banking, consumer electronics, retail as well as the public sector. Healthcare contributes to majority of HGS’s revenues (47.3%) and HGS provides holistic lifecycle management expertise that engage, satisfy, and retain members .HGS operates on a global landscape with 66 delivery locations worldwide across seven countries and 43,750 employees. As on FY16 HGS had revenues of USD 506mn(Rs 33.2bn) and company delivered USD Revenue CAGR of 16.6% over FY11‐FY16. Company had EBITDA/PAT Margin of 12/4.9% respectively as of Q3FY17. Net debt on balance sheet stands at Rs2909mn as on 3QFY17.

Global presence across diversified verticals: HGS has a strong presence globally

with 69% revenues contribution from USA, followed by Canada (10%), UK&

Europe (7.4%) and India (14.2%). Amongst verticals, Healthcare contributes

47.3%, followed by Telecommunications 22.4%, consumer products 13.4% and

financial services 7.4%. In healthcare HGS is a partner to 5 out of top 10 US

healthcare payers. We note that Healthcare has been the fastest growing

vertical for the company over the past three years. As of December 31, 2016,

HGS had 185 core BPM clients.

Employee Strength and client concentration: HGS has total employee strength

of 43,750 as of Q3FY17. Out of these 65% of the employee are based in India

followed by 17.7% in Philippines and 9.4% in USA. As on 3QFY17, Top client

contributes to 18% of revenues and top 10 clients contribute to 61% of total

revenues. As on Q3FY17 top 20 clients contribute 72% of the total revenues.


Revenues (Rs m) 19,835 25,049 28,076 33,282

Growth (%) 27.6 26.3 12.1 18.5

EBITDA (Rs m) 2,237 3,219 3,128 3,130

PAT (Rs m) 906 1,696 1,650 1,010

EPS (Rs) 46.6 82.3 79.7 48.7

Growth (%) (10.0) 76.6 (3.2) (38.8)

Net DPS (Rs) 20.0 20.0 20.0 15.0


EBITDA margin (%) 11.3 12.9 11.1 9.4

RoE (%) 7.7 12.6 13.1 9.0

RoCE (%) 7.0 10.7 10.8 7.0

EV / sales (x) 0.7 0.5 0.5 0.5

EV / EBITDA (x) 5.8 4.2 4.8 5.3

PE (x) 13.0 7.4 7.6 12.5

P / BV (x) 1.0 0.9 1.2 1.1



16 March 20, 2017

Hinduja Global Solutions


Y/e March 2013 2014 2015 2016

Net Revenue 19,835 25,049 28,076 33,282

Raw Material Expenses ‐ ‐ ‐ ‐

Gross Profit ‐ ‐ ‐ ‐

Employee Cost 13,412 16,921 19,105 22,430

Other Expenses 4,185 4,908 5,844 7,721

EBITDA 2,237 3,219 3,128 3,130

Depr. & Amortization 772 862 1,052 1,364

Net Interest 437 388 386 401

Other Income 333 340 246 194


Total Tax 402 614 284 549

Profit after Tax 959 1,696 1,650 1,010

Ex‐Od items / Min. Int. (53) ‐ ‐ ‐

Adj. PAT 906 1,696 1,650 1,010

Avg. Shares O/S (m) 20.6 20.6 20.7 20.7

EPS (Rs.) 44.0 82.3 79.7 48.7


Y/e March 2013 2014 2015 2016


C/F from Investing 931 (1,345) (684) (1,973)

C/F from Financing (2,681) (136) (897) 1,121

Inc. / Dec. in Cash (427) 870 331 611

Opening Cash 1,015 641 1,553 1,952

Closing Cash 641 1,553 1,952 2,672

FCF (98) 814 (610) (1,228)


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) 27.6 26.3 12.1 18.5

EBITDA (%) 21.5 43.9 (2.8) 0.1

PAT (%) (14.6) 87.2 (2.7) (38.8)

EPS (%) (14.6) 86.9 (3.2) (38.8)

Profitability

EBITDA Margin (%) 11.3 12.9 11.1 9.4

PAT Margin (%) 4.6 6.8 5.9 3.0

RoCE (%) 7.0 10.7 10.8 7.0

RoE (%) 7.7 12.6 13.1 9.0

Balance Sheet

Net Debt : Equity 0.0 0.1 0.2 0.3

Valuation

PER (x) 13.0 7.4 7.6 12.5

P / B (x) 1.0 0.9 1.2 1.1

EV / EBITDA (x) 5.8 4.2 4.8 5.3

EV / Sales (x) 0.7 0.5 0.5 0.5

Earnings Quality

Eff. Tax Rate 29.6 26.6 14.7 35.2

Other Inc / PBT 24.4 14.7 12.7 12.5



Y/e March 2013 2014 2015 2016


Total Debt 4,501 5,543 5,936 7,650



Net Fixed Assets 9,455 10,903 7,751 9,186

Goodwill






Other Assets 1,180 1,490 1,906 2,240

Total Assets 17,158 20,472 16,760 19,725



Net Revenue 9,139 9,095 9,052 9,563

EBITDA 981 1,066 964 1,145

% of revenue 10.7 11.7 10.7 12.0


Net Interest 104 118 111 104



Total Tax 205 234 118 248


Adj. PAT 408 517 374 472


Y/e March 2013 2014 2015 2016

Revenues (USD mn) 363.8 412.0 457.8 506.3 Source: Company Data, PL Research.

I G Petrochemicals


March 20, 2017


March 20, 2017 17

Management Representative: Mr. R. Chandrasekeran CFO

Trading data




Major shareholders

Promoters 72.22%

Foreign 0.02%



Stock Performance

(%) 1M 6M 12M

Absolute 15.2 80.6 242.4

Relative 12.1 76.2 222.0

Price Performance (RIC: IGPL.BO, BB: IGPL IN)

050

100150200250300350400

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Leading player in Phthalic Anhydride (PAN) globally: IG Petrochemicals is an

established market leader in PAN with one of the largest capacity of 169,250MT

at a single location. It is promoted by the Dhanuka group in technical

collaboration with Lurgi GmbH, Germany. PAN is used as an intermediate for the

production of Plasticizers, Unsaturated Polyster Resins, Alkyd Resins & Polyols.

Diversified product usage: PAN is a versatile intermediate in organic chemistry

and has usage across diverse industries such as flexible PVC, plastics, paints,

construction, transportation and marine. PAN finds usage in both consumer

durables to non consumer durables. Also, PAN is used in manufacturing

plasticizers, which are most essential in making PVC products, shoe soles, cables,

pipes and hoses, etc. It is also used to manufacture alkyd resins used in paints

and in the production of unsaturated polyester resins for building materials,

plastic products, textile industries and printing inks.

PAN growth to piggyback on rising end product demand: PAN demand is set to

surge on the back of improving user industry demand. Global PAN market

stands at 5.5m tons and is expected to grow at ~6.4% CAGR through CY19, as

per the company and the Indian PAN market is to grow faster at 7‐8%, tracking

higher GDP rate.

Healthy earnings growth traction: IGPL’S 9MFY17 operating profits have

registered 32%YoY growth while PAT has grown at 52%YoY to Rs735m.

Debt/Equity for the company remains comfortable at 0.26x as on H1FY17.


Revenues (Rs m) 9,703 12,043 11,867 9,528

Growth (%) 9.5 24.1 (1.5) (19.7)

EBITDA (Rs m) 544 605 803 1,134

PAT (Rs m) 31 31 89 604

EPS (Rs) 1.0 1.0 2.9 19.6

Growth (%) (76.8) 1.7 184.2 578.5

Net DPS (Rs) 0.0 0.0 1.0 2.0


EBITDA margin (%) 5.8 5.3 6.7 11.3

RoE (%) 1.3 1.3 3.8 22.8

RoCE (%) 6.0 8.1 11.8 24.9

EV / sales (x) 0.2 0.2 0.3 0.4

EV / EBITDA (x) 3.4 3.6 3.5 3.6

PE (x) 24.0 23.1 18.7 5.3

P / BV (x) 0.3 0.3 0.7 1.1

Net dividend yield (%) ‐ ‐ 1.9 1.9


18 March 20, 2017

I G Petrochemicals


Y/e March 2013 2014 2015 2016

Net Revenue 9,703 12,043 11,867 9,528


Gross Profit 1,466 1,559 1,855 2,188



EBITDA 544 605 803 1,134


Net Interest 167 304 382 227



Total Tax 8 8 24 164


Ex‐Od items / Min. Int. (277) (179) (211) ‐

Adj. PAT 31 31 89 604

Avg. Shares O/S (m) 31 31 31 31

EPS (Rs.) 1.0 1.0 2.9 19.6


Y/e March 2013 2014 2015 2016

C/F from Operations 290 281 743 695

C/F from Investing (1,336) (356) (237) (64)

C/F from Financing 1,091 15 (609) (644)

Inc. / Dec. in Cash 45 (61) (103) (13)

Opening Cash 300 346 285 182

Closing Cash 346 285 182 169

FCFF (1,428) (387) 88 455

FCFE (1,560) (630) (214) 276


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) 9.5 24.1 (1.5) (19.7)

EBITDA (%) 34.3 13.2 23.9 34.5

PAT (%) (76.8) 1.7 184.2 578.5

EPS (%) (76.8) 1.7 184.2 578.5

Profitability

EBITDA Margin (%) 5.8 5.3 6.7 11.3

PAT Margin (%) 0.3 0.2 0.7 5.8

RoCE (%) 6.0 8.1 11.8 24.9

RoE (%) 1.3 1.3 3.8 22.8

Balance Sheet

Net Debt : Equity 0.5 0.7 0.6 0.3


Valuation

PER (x) 24.0 23.1 18.7 5.3

P / B (x) 0.3 0.3 0.7 1.1

EV / EBITDA (x) 3.4 3.6 3.5 3.6

EV / Sales (x) 0.2 0.2 0.3 0.4

Earnings Quality

Eff. Tax Rate 20.9 20.0 21.0 21.3

Other Inc / PBT 0.2 0.4 0.2 0.0

Eff. Depr. Rate (%) 3.8 5.0 4.1 4.1

FCFE / PAT (50.7) (20.1) (2.4) 0.5



Y/e March 2013 2014 2015 2016


Total Debt 1,718 2,088 1,529 1,161



Net Fixed Assets 3,434 3,769 3,275 3,266

Goodwill 0 0 0 0

Investments 1 1 1 3

Net Current Assets 834 831 452 613





Total Assets 4,315 4,682 3,932 4,097



Net Revenue 2,144 2,555 2,550 2,377

EBITDA 233 467 342 376

% of revenue 10.9 18.3 13.4 15.8





Total Tax 32 82 55 64


Adj. PAT 120 301 203 232


Ortel Communications


March 20, 2017


March 20, 2017 19

Management Representative: Mr. Bidhu Prasad Rath President & CEO

Trading data




Major shareholders

Promoters 52.06%

Foreign 11.80%



Stock Performance

(%) 1M 6M 12M

Absolute (6.0) (30.5) (42.8)

Relative (9.1) (34.8) (63.2)

Price Performance (RIC: ORTE.BO,BB: ORTEL IN)

0

50

100

150

200

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Ortel Communication (OCL) is a regional cable television and high speed broadband services provider focused in the Indian states of Odisha, Chhattisgarh, Madhya Pradesh, Andhra Pradesh, Telengana &West Bengal. Unlike most national MSOs, which follow a B2B model, OCL has differentiated itself by focusing on ownership and control of the last mile. It has the necessary infrastructure of 64000kms of last mile cable network spread across 78 towns to provide triple play services (video, data and voice). The absence of the LCO channel helps it minimise its revenue losses, control the subscriber churn & cross‐sell its products. However, the business is currently struggling as the collections in new markets have been relatively slow. Also, OCL follows aggressive stance in providing for bad debts (~Rs80m provided in Q3FY17) in shorfall of collections.

OCL owns and control the last mile: OCL operates its own network and has full

control on 90% plus subscribers. Direct collections from customers help in

controlling trade receivables and reduce bad debts resulting in better margins

and cash flows. Access to customers directly limits large scale subscriber churn.

Strong subscriber additions in markets outside Orissa: OCL’s local Cable

operator (LCO) buyout strategy is receiving good subscriber addition in states of

AP, Telangana, Chhattisgarh and MP. More than 96% of subscribers added in

9MFY17 have been outside Odisha.

Operational challenges lingers, execution in newer markets to watch out for:

OCL has expanded in the newer markets by buying out LCO’s. However, the

required infrastructure for collections on ground is weak. Also, collections from

older subscriber base suffered due to the process of transition from Analog to

digital and demonetization. Further, the ARPU for subscribers has remained flat

at Rs150 as most new subscribers have come at a much lower ARPU. Increased

competition in broadband has affected subscriber growth.


Revenues (Rs m) 1,198 1,285 1,548 1,877

Growth (%) 0.4 7.3 20.5 21.3

EBITDA (Rs m) 224 244 352 415

PAT (Rs m) (228) (96) 56 119

EPS (Rs) 0.0 (5.9) 1.8 3.9

Growth (%) NA NA NA 113.0

Net DPS (Rs) ‐ ‐ ‐ ‐


EBITDA margin (%) 18.7 19.0 22.7 22.1

RoE (%) (59.0) (70.5) 8.4 9.0

RoCE (%) 1.1 5.6 13.5 13.2

EV / sales (x) 1.1 3.0 2.1 2.3

EV / EBITDA (x) 6.0 15.9 9.3 10.5

PE (x) ‐ (18.7) 59.9 28.1

P / BV (x) 7.8 41.5 2.7 2.4



20 March 20, 2017

Ortel Communications


Y/e March 2013 2014 2015 2016

Net Revenue 1,198 1,285 1,548 1,877

Raw Material Expenses 50 51 51 59

Gross Profit 1,148 1,234 1,497 1,818


Other Expenses 754 848 978 1,178

EBITDA 224 244 352 415


Net Interest 249 234 225 236


Profit before Tax (228) (96) 71 150

Total Tax 15 31

Profit after Tax (228) (96) 56 119

Ex‐Od items / Min. Int. ‐ ‐ ‐ ‐

Adj. PAT (228) (96) 56 119

Avg. Shares O/S (m) ‐ 23 30 30

EPS (Rs.) 0.0 ‐5.9 1.8 3.9


Y/e March 2013 2014 2015 2016


C/F from Investing (161) (199) (385) (1,217)

C/F from Financing (422) (166) 809 45

Inc. / Dec. in Cash (69) 115 1,087 (852)

Opening Cash 26 (69) 47 1,134

Closing Cash (43) 47 1,134 282

FCFF (10) (72) (134) (1,352)

FCFE 260 66 81 (488)


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) 0.4 7.3 20.5 21.3

EBITDA (%) (33.4) 9.0 44.4 17.8

PAT (%) 0.0 (57.8) (158.3) 113.0

EPS (%) 0.0 0.0 (131.2) 113.0

Profitability

EBITDA Margin (%) 18.7 19.0 22.7 22.1

PAT Margin (%) (19.0) (7.5) 3.6 6.4

RoCE (%) 1.1 5.6 13.5 13.2

RoE (%) (59.0) (70.5) 8.4 9.0

Balance Sheet

Net Debt : Equity 3.5 6.3 (0.1) 0.7

Net Wrkng Cap. (days) (1.8) (24.3) (39.6) (19.1)

Valuation

PER (x) NA (18.7) 59.9 28.1

P / B (x) 7.8 41.5 2.7 2.4

EV / EBITDA (x) 6.0 15.9 9.3 10.5

EV / Sales (x) 1.1 3.0 2.1 2.3

Earnings Quality

Eff. Tax Rate 0.0 0.0 20.7 20.4

Other Inc / PBT (8.0) (97.0) 186.7 104.6

Eff. Depr. Rate (%) 7.5 6.4 6.1 5.0

FCFE / PAT (1.1) (0.7) 1.5 (4.1)



Y/e March 2013 2014 2015 2016


Total Debt 1,403 1,351 1,106 1,294



Net Fixed Assets 2,317 2,017 2,169 3,280

Goodwill ‐ 4 3 2

Investments 3 3 3 3

Net Current Assets (507) (460) 201 (536)

Cash & Equivalents 59 55 1,184 290

Other Current Assets 119 178 181 313

Current Liabilities 757 772 1,333 1,723


Total Assets 1,869 1,626 2,423 2,825



Net Revenue 533 524 537 512

EBITDA 134 120 153 99

% of revenue 25.2 22.9 28.5 19.4




Profit before Tax 37 9 36 (21)

Total Tax 10 11 7

Profit after Tax 28 9 25 (28)

Adj. PAT 28 9 25 (28)


Shree Pushkar Chemicals & Fertilisers


March 20, 2017


March 20, 2017 21

Management Representative: Mr. Punit Makharia MD Mr. S.N. Sengupta Associate Director

Trading data




Major shareholders

Promoters 61.60%

Foreign 0.47%



Stock Performance

(%) 1M 6M 12M

Absolute (0.1) 37.4 46.6

Relative (3.2) 33.1 26.3

Price Performance (RIC: SPCH.BO, BB: PCFL IN)

0

50

100

150

200

250

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Shree Pushkar Chemicals & Fertilisers Limited (SPCF) incorporated in 1993 is a Mumbai based manufacturer of widest range of dye intermediates in India with Zero Waste. It has manufacturing facilities located at Lote Parshuram, Maharashtra with a capacity of 8886 MTA Of Dye intermediates, 3000MTA of Reactive dyes, 1,40,000 TPA of fertilisers (comprising 1 lakh TPA of SSP, 12,000TPA of Soil conditioner, 18,000TPA of NPK & 10,000 TPA of SOP), 125 TPD of Sulphuric &

its derivative acids, 4500 MTA of DCP (a cattle feed supplement). SPCF is also amongst India's large manufacturers of K‐Acid, a dye intermediate used to manufacture Reactive Dyes for dying of textiles. SPCF has a strong dealer team of 300 plus spread across Maharashtra, Gujarat and Karnataka. Almost 70% of business is constituted by dye intermediates and 15% by fertilizers.

An integrated manufacturer of Dye Intermediates: SPCF has developed a

backward integrated model in Dye Intermediates to better cost efficiencies. The

products basket includes Gamma Acid, K‐acid, Vinyl Sulphone and H Acid.

A Zero Waste chemical Company: SPCF branched into Cattle Feed, Fertiliser and

Acid Complex to generate income from effluents and reducing costs associated

with the discharge management. They have a marketing tie‐up with DCM Sriram

for Fertiliser & Shivam Chemicals for Cattle Feed. A single location plant helps in

maintaining a complex model to achieve a Zero Waste status.

Forward integration into Reactive Dyes: SPCF has set up new reactive dyes

plant with capacity of 3,000MT p.a. The Company already has got an order book

for 2 months in place. It is also setting up additional capacity in Dye

Intermediates to cater to future requirement of Dyestuff.

Maintaining steady growth in current business: Fully integrated business model

leading to cost efficiencies and Zero Waste management. The consolidated

business revenue growth at a CAGR of 15% over the past 5 years.

Maintaining steady growth in current business: Fully integrated business model

leading to cost efficiencies and Zero Waste management. The consolidated

business revenue growth at a CAGR of 15% over the past 5 years.


Revenues (Rs m) 1,760 2,101 2,665 2,487

Growth (%) 16.8 19.4 26.9 (6.7)

EBITDA (Rs m) 227 292 315 324

PAT (Rs m) 72 104 187 224

EPS (Rs) 2.4 3.5 6.2 7.4

Growth (%) 35.3 44.1 79.6 19.5

Net DPS (Rs) ‐ ‐ ‐ 1.0


EBITDA margin (%) 12.9 13.9 11.8 13.0

RoE (%) 14.3 17.9 24.7 17.8

RoCE (%) 12.4 14.0 18.5 14.4

EV / sales (x) 3.5 2.9 2.1 2.1

EV / EBITDA (x) 27.2 20.7 17.9 16.1

PE (x) 75.1 52.1 29.0 24.3

P / BV (x) 10.2 8.6 6.2 3.3



22 March 20, 2017

Shree Pushkar Chemicals & Fertilisers


Y/e March 2013 2014 2015 2016

Net Revenue 1,760 2,101 2,665 2,487


Gross Profit 461 595 711 734



EBITDA 227 292 315 324





Total Tax 17 37 41 68



Adj. PAT 72 104 187 224

Avg. Shares O/S (m) 20.7 20.7 20.7 30.2

EPS (Rs.) 2.4 3.5 6.2 7.4


Y/e March 2013 2014 2015 2016



C/F from Financing (60) (211) (433) 442

Inc. / Dec. in Cash (6) 11 (16) (3)



FCFF 55 222 418 (445)


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) 16.8 19.4 26.9 (6.7)

EBITDA (%) 13.4 28.4 8.1 2.6

PAT (%) 35.3 44.0 79.7 19.5

EPS (%) 35.3 44.1 79.6 19.5

Profitability

EBITDA Margin (%) 12.9 13.9 11.8 13.0

PAT Margin (%) 4.1 5.0 7.0 9.0

RoCE (%) 12.4 14.0 18.5 14.4

RoE (%) 14.3 17.9 24.7 17.8

Balance Sheet

Net Debt : Equity 1.4 1.0 0.3 (0.1)


Valuation

PER (x) 75.1 52.1 29.0 24.3

P / B (x) 10.2 8.6 6.2 3.3

EV / EBITDA (x) 27.2 20.7 17.9 16.1

EV / Sales (x) 3.5 2.9 2.1 2.1

Earnings Quality

Eff. Tax Rate 19.3 26.4 18.1 23.4

Other Inc / PBT 6.5 2.0 1.3 8.7

Eff. Depr. Rate (%) 6.5 6.0 4.7 3.6



Y/e March 2013 2014 2015 2016

Shareholder's Funds 532 636 882 1,631

Total Debt 721 618 248 175



Net Fixed Assets 577 581 691 951






Current Liabilities 349 273 237 356


Total Assets 1,287 1,298 1,168 1,863



Net Revenue 784 637 806 760

EBITDA 89 102 154 124

% of revenue 11.3 16.0 19.1 16.3





Total Tax 24 35 48 38


Adj. PAT 57 60 90 72


Waterbase


March 20, 2017


March 20, 2017 23

Management Representative: Mr. Ramakanth Akula CEO

Trading data


52 Week Low (Rs) 71


Major shareholders

Promoters 60.90%

Foreign 1.58%



Stock Performance

(%) 1M 6M 12M

Absolute 15.0 (7.8) 21.2

Relative 11.9 (12.1) 0.9

Price Performance (RIC: WTRB.BO, BB: WB IN)

0

20

40

60

80

100

120

140

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Waterbase Ltd (TWL) promoted by the Karam Chand Thapar (KCT) Group is a leading manufacturer and exporter of prawn feed & shrimps. It owns several popular brands in shrimp feed which enjoys strong acceptance in the shrimp farming community in India. Its processed shrimp is marketed across Europe, Japan and the US. TWL is scaling up its business steadily (grown from Rs1bn sales to Rs3bn sales since FY12) however profitability has been affected for FY17 due to rise in prices of key RM and scarce availability of shrimp due to prevalence of diseases. Further, TWL incurred certain one‐time costs in restarting its processing business following disruption owing to floods last year, compressing profitability further. Given the current attractive farm gate prices, the outlook for next season is robust considering farmers are increasing the area under cultivation.

Set to benefit from tripling of capacities post amalgamation with Pinnae

Feeds: TWL has recently concluded the amalgamation with Pinnae Feeds which

shall increase the combined capacity to 1,10,000 MTPA almost 3x current

capacity. Enhanced capacity will allow the company to target newer markets

and aggressively pursue customer categories to drive volume growth

Implementing revenue and market diversification strategy to drive sustainable

growth: Existing verticals of shrimp feed manufacturing, shrimp processing, local

sales and exports of frozen shrimps to be supplemented by new verticals of

hatcheries and farm care products. Improved product mix, customer mix and

wider distribution infrastructure to reduce concentration risk

Enjoys a strong financial position: TWL enjoys healthy return ratios with

negligible debt with a debt equity ratio of 0.2x.


Revenues (Rs m) 1,570 2,282 2,776 3,186

Growth (%) 51.8 45.3 21.6 14.8

EBITDA (Rs m) 122 237 309 238

PAT (Rs m) 60 136 195 7

EPS (Rs) 2.3 3.5 5.1 0.2

Growth (%) 23.7 50.6 43.8 (96.5)

Net DPS (Rs) 0.0 0.0 1.5 0.0


EBITDA margin (%) 7.7 10.4 11.1 7.5

RoE (%) 10.5 18.5 21.0 0.7

RoCE (%) 9.0 15.2 17.9 19.1

EV / sales (x) 1.6 1.5 1.2 1.1

EV / EBITDA (x) 20.2 14.2 10.7 14.1

PE (x) 38.5 25.6 17.8 507.9

P / BV (x) 3.8 4.0 3.5 3.5

Net dividend yield (%) ‐ ‐ 1.7 ‐


24 March 20, 2017

Waterbase


Y/e March 2013 2014 2015 2016

Net Revenue 1,570 2,282 2,776 3,186


Gross Profit 465 694 780 744



EBITDA 122 237 309 238





Total Tax 16 69 107 8


Ex‐Od items / Min. Int. (0) (0) ‐ 140

Adj. PAT 60 136 195 216

Avg. Shares O/S (m) 25.7 38.6 38.6 38.6

EPS (Rs.) 2.3 3.5 5.1 0.2


Y/e March 2013 2014 2015 2016


C/F from Investing (8) 6 (37) (43)

C/F from Financing (13) 51 (48) (47)

Inc. / Dec. in Cash 91 82 39 (88)


Closing Cash 167 249 227 139


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) 51.8 45.3 21.6 14.8

EBITDA (%) 16.2 95.1 30.4 (22.9)

PAT (%) 6.6 125.8 43.8 (96.5)

EPS (%) 23.7 50.6 43.8 (96.5)

Profitability

EBITDA Margin (%) 7.7 10.4 11.1 7.5

PAT Margin (%) 3.8 5.9 7.0 0.2

RoCE (%) 9.0 15.2 17.9 19.1

RoE (%) 10.5 18.5 21.0 0.7

Balance Sheet

Net Debt : Equity 0.2 (0.1) (0.2) (0.1)


Valuation

PER (x) 38.5 25.6 17.8 507.9

P / B (x) 3.8 4.0 3.5 3.5

EV / EBITDA (x) 20.2 14.2 10.7 14.1

EV / Sales (x) 1.6 1.5 1.2 1.1

Earnings Quality

Eff. Tax Rate 20.8 33.6 35.5 4.3

Other Inc / PBT 1.9 0.8 1.0 1.4

Eff. Depr. Rate (%) 5.0 3.1 2.3 2.7

FCFE / PAT



Y/e March 2013 2014 2015 2016

Shareholder's Funds 603 867 992 999

Total Debt 303 141 124 102


Total Liabilities 917 1,020 1,139 1,122


Goodwill




Other Current Assets 934 1,076 996 939



Total Assets 917 1,020 1,139 1,122



Net Revenue 643 1,353 799 541

EBITDA (13) 141 51 21

% of revenue (2.0) 10.5 6.3 3.9




Profit before Tax (19) 138 37 6

Total Tax (6) 48 11 4

Profit after Tax (13) 90 26 2

Adj. PAT (13) 90 26 2



March 20, 2017 25

Notes

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26 March 20, 2017

March 23

Dhampur Sugar Mills


March 20, 2017


March 20, 2017 27

Management Representative: Mr. Arhant Jain President Finance & CS Mr. Nalin Gupta CGM Finance Mr. Kishore Shah Consultant

Trading data


52 Week Low (Rs) 76


Major shareholders

Promoters 50.59%

Foreign 4.60%



Stock Performance

(%) 1M 6M 12M

Absolute 12.0 82.5 175.9

Relative 8.9 78.2 155.5

Price Performance (RIC: DAMS.BO, BB: DSM IN)

0

50

100

150

200

250

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Dhampur Sugar (DSM) has sugar capacity of 45,500 TCD, 209MW of cogen power, and 300KLPD of distillery which continue to provide alternate revenue streams and some cushion against cyclicality in the sugar business. Sugar division contributed 59% of revenues followed by Power and Distillery at 15% & 13% respectively for FY16. DSM supplies power to UP state grid at average realisation of Rs.5.05/unit. Increase in the sugar realizations since Aug, 2015 coupled with improved sales from distillery division resulted in increase in operating profitability to 9.4% in FY16 from 7.5% in FY15.

Healthy realizations of Rs35/kg in 9MFY17 have aided profitability: Healthy







DSM has an inventory of 168,000 Tonnes of sugar: In Q3FY17, DSM sold

141,000 MT of sugar at average realization of Rs35.6/kg and has a closing stock

inventory of 168,000 MT of sugar for sale in the coming quarters.

Improvement in financial position due to rise in profitability: DSM has

generated Rs1.29bn in earnings for 9M FY17 Vs a loss of Rs859m 9MFY16. DSM

is slowly deleveraging and the total debt on books stands at Rs13.7bn currently.

Management has clearly highlighted no major capex going forward and most

part of improvement in earnings will be used to repay debt.


Revenues (Rs m) 14,812 18,228 17,774 22,330

Growth (%) (3.7) 23.1 (2.5) 25.6

EBITDA (Rs m) 2,213 1,282 1,329 2,103

PAT (Rs m) 227 (783) (128) 259

EPS (Rs) 4.2 (13.7) (2.2) 4.3

Growth (%) (23.4) NA NA NA

Net DPS (Rs) 0.0 0.0 1.5 0.0


EBITDA margin (%) 14.9 7.0 7.5 9.4

RoE (%) 4.7 (16.8) (3.0) 4.6

RoCE (%) 4.9 2.6 1.0 5.8

EV / sales (x) 1.8 1.4 1.7 1.3

EV / EBITDA (x) 12.0 20.5 22.1 14.3

PE (x) 54.2 (16.7) (104.5) 53.1

P / BV (x) 2.5 2.9 3.2 1.9

Net dividend yield (%) 1.3 ‐ ‐ ‐


28 March 20, 2017

Royal Orchid Hotels


Y/e March 2013 2014 2015 2016

Net Revenue 14,812 18,228 17,774 22,330


Gross Profit 4,605 3,871 3,792 4,970


Other Expenses 1,681 1,856 1,701 2,024

EBITDA 2,213 1,282 1,329 2,103


Net Interest 1,127 1,422 1,497 1,587


Profit before Tax 393 (839) (542) 314

Total Tax 165 (56) (413) 55

Profit after Tax 227 (783) (128) 259


Adj. PAT 227 (783) (128) 157

Avg. Shares O/S (m) 54.0 57.3 58.8 60.3

EPS (Rs.) 4.2 (13.7) (2.2) 4.3


Y/e March 2013 2014 2015 2016

C/F from Operations (1,486) 4,811 (807) 1,682

C/F from Investing (706) (2,470) (462) (417)

C/F from Financing 2,205 (2,395) 1,246 (1,174)

Inc. / Dec. in Cash 14 (54) (23) 91




Y/e March 2013 2014 2015 2016

Growth

Revenue (%) (3.7) 23.1 (2.5) 25.6

EBITDA (%) 8.9 (42.1) 3.7 58.2

PAT (%) (23.4) (445.0) (83.6) (301.6)

EPS (%) (23.4) (425.1) (84.0) (296.5)

Profitability

EBITDA Margin (%) 14.9 7.0 7.5 9.4

PAT Margin (%) 1.5 (4.3) (0.7) 1.2

RoCE (%) 4.9 2.6 1.0 5.8

RoE (%) 4.7 (16.8) (3.0) 4.6

Balance Sheet

Net Debt : Equity 2.9 3.0 3.8 2.3


Valuation

PER (x) 54.2 (16.7) (104.5) 53.1

P / B (x) 2.5 2.9 3.2 1.9

EV / EBITDA (x) 12.0 20.5 22.1 14.3

EV / Sales (x) 1.8 1.4 1.7 1.3

Earnings Quality

Eff. Tax Rate 42.1 6.7 76.3 17.6

Other Inc / PBT 1.9 0.8 1.0 1.4

Eff. Depr. Rate (%) 4.7 4.4 2.8 2.5



Y/e March 2013 2014 2015 2016


Total Debt 14,391 13,353 16,093 16,565



Net Fixed Assets 10,924 12,931 12,717 15,239

Goodwill






Other Assets 47 275 1,658 403

Total Assets 19,552 18,042 20,571 23,890



Net Revenue 5,446 4,954 6,593 6,716

EBITDA 1,457 1,032 1,056 1,329

% of revenue 26.8 20.8 16.0 19.8


Net Interest 398 469 370 319


Profit before Tax 1,173 478 604 911

Total Tax 55 147 205 342

Profit after Tax 1,118 331 399 565

Adj. PAT 1,016 331 399 565


KEC International


March 20, 2017


March 20, 2017 29

Management Representative: Mr. Randeep Narang President, Intl. T&D Business Mr. Pankaj Kalani Sr. V.P. – Finance & Accounts

Trading data




Major shareholders

Promoters 50.86%

Foreign 6.84%



Stock Performance

(%) 1M 6M 12M

Absolute 4.0 43.0 45.1

Relative (0.2) 39.3 25.0

Price Performance (RIC: KECL.BO, BB: KECI IN)

Source: Bloomberg

0

50

100

150

200

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

KEC International Limited mainly is in the businesses of power transmission and distribution, and power and telecom cables. It operates in five verticals: power transmission and distribution, providing end‐to‐end solutions for power evacuation from generating stations to consumer distribution points; cables, including manufacturing of power cables and telecom cables; railways, offering solutions to various functional segments, such as civil infrastructure, including bridges, tunnels, platform, workshop modernization and station building. They are also into water segment offering services, such as water resource management as well as civil works related to thermal power projects, and waste water treatment, including sewage and industrial effluent treatment projects. KECI is also present in renewable, offering services for large solar photovoltaic projects.

Strong order book: Order YTD stood at Rs111bn (up 19% YoY) and order inflow

YTD stood at Rs86.5bn (up 26% YoY). KEC is already L1 in orders worth Rs38bn.

In domestic markets while is seeing a slowdown in orders from Power Grid; the

company is seeing strong traction in SEB. With improving commodity price

outlook in international markets, KEC is focusing on exposure in Middle East and

recently bagged order from Jordan. KEC expect sales to grow by 10‐15% in

FY18.

New business scaling well: KEC believes Solar/Railways/Sub‐station segments

could be important growth drivers for the company, going ahead. Improving

margins in new business segment should support overall margins.


Revenues (Rs m) 85,163 86,866 97,290 107,019

Growth (%) 0.6 2.0 12.0 10.0

EBITDA (Rs m) 6,793 7,872 8,720 9,592

PAT (Rs m) 1,915 2,570 2,920 3,304

EPS (Rs) 7.5 10.0 11.4 12.9

Growth (%) 145.3 34.2 13.6 13.2

Net DPS (Rs) 1.1 1.5 1.7 1.9


EBITDA margin (%) 8.0 9.1 9.0 9.0

RoE (%) 13.5 16.2 16.3 15.7

RoCE (%) 10.5 11.3 11.8 12.0

EV / sales (x) 0.8 0.7 0.7 0.6

EV / EBITDA (x) 9.8 8.0 7.3 6.6

PE (x) 23.1 17.2 15.1 13.4

P / BV (x) 2.9 2.7 2.3 2.0



30 March 20, 2017

KEC International


Y/e March 2016 2017E 2018E 2019E

Net Revenue 85,163 86,866 97,290 107,019


Gross Profit 43,683 40,827 45,726 50,299

Employee Cost 6,424 5,212 6,810 7,491

Other Expenses 30,466 27,743 30,196 33,216

EBITDA 6,793 7,872 8,720 9,592

Depr. & Amortization 876 1,167 1,279 1,392

Net Interest 2,774 2,751 3,006 3,165

Other Income 103 190 200 209


Total Tax 1,331 1,575 1,714 1,940

Profit after Tax 1,915 2,570 2,920 3,304

Ex‐Od items / Min. Int. — — — —

Adj. PAT 1,915 2,570 2,920 3,304

Avg. Shares O/S (m) 257.0 257.0 257.0 257.0

EPS (Rs.) 7.5 10.0 11.4 12.9


Y/e March 2016 2017E 2018E 2019E

C/F from Operations (508) 7,808 4,324 5,548

C/F from Investing 181 (1,500) (1,500) (1,500)

C/F from Financing (632) (2,899) (2,592) (2,844)

Inc. / Dec. in Cash (958) 3,409 232 1,204

Opening Cash 1,942 984 4,393 4,625

Closing Cash 984 4,393 4,625 5,830

FCFF (3,308) 4,351 (412) 630

FCFE (513) 4,422 318 1,311


Y/e March 2016 2017E 2018E 2019E

Growth

Revenue (%) 0.6 2.0 12.0 10.0

EBITDA (%) 32.7 15.9 10.8 10.0

PAT (%) 145.3 34.2 13.6 13.2

EPS (%) 145.3 34.2 13.6 13.2

Profitability

EBITDA Margin (%) 8.0 9.1 9.0 9.0

PAT Margin (%) 2.2 3.0 3.0 3.1

RoCE (%) 10.5 11.3 11.8 12.0

RoE (%) 13.5 16.2 16.3 15.7

Balance Sheet

Net Debt : Equity 1.5 1.1 1.0 0.8


Valuation

PER (x) 23.1 17.2 15.1 13.4

P / B (x) 2.9 2.7 2.3 2.0

EV / EBITDA (x) 9.8 8.0 7.3 6.6

EV / Sales (x) 0.8 0.7 0.7 0.6

Earnings Quality

Eff. Tax Rate 41.0 38.0 37.0 37.0

Other Inc / PBT 3.2 4.6 4.3 4.0

Eff. Depr. Rate (%) 6.2 7.5 7.5 7.5

FCFE / PAT (26.8) 172.1 10.9 39.7



Y/e March 2016 2017E 2018E 2019E


Total Debt 23,246 23,318 24,047 24,728



Net Fixed Assets 8,598 8,931 9,152 9,260

Goodwill 4,180 4,180 4,180 4,180

Investments — — — —





Other Assets 241 241 241 241

Total Assets 39,027 40,526 44,090 47,969


Y/e March Q1FY17 Q2FY17 Q3FY17 Q4FY17E

Net Revenue 17,487 20,742 19,123 29,514

EBITDA 1,496 1,853 1,818 2,705

% of revenue 8.6 8.9 9.5 9.2


Net Interest 720 596 583 852


Profit before Tax 535 1,002 1,006 1,600

Total Tax 226 352 380 616


Adj. PAT 309 650 626 984


KEI Industries


March 20, 2017


March 20, 2017 31

Management Representative: Mr. Rajiv Gupta CFO

Trading data


52 Week Low (Rs) 92


Major shareholders

Promoters 49.04%

Foreign 5.31%



Stock Performance

(%) 1M 6M 12M

Absolute (2.7) 51.5 78.6

Relative (5.8) 47.2 58.2

Price Performance (RIC: KEIN.BO, BB: KEII IN)

0

50

100

150

200

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

KEI Industries (KEI) is engaged in the manufacturing of low tension, high tension and extra high voltage (EHV) cables, along with specialty cables, house wires and stainless steel wires. The manufacturing facilities of the company are located in Bhiwadi, Chopanki and Silvassa. In addition, the company is also engaged in carrying out the EPC works for electrification which includes laying of cables, setting up of transformers, feeder separation and last mile connection. Over the last few years, KEI has scaled up on its product mix / capacity to emerge as a meaningful player in the Indian Cable space. KEI has gradually reduced its proportion of B2B cables and has expanded its presence in the retail segment. However, high competitive intensity of the industry, moderate growth potential in the key business segments of institutional Low Tension/High Tension cables, long payment cycle in the EPC business, and exposure to adverse movements in raw

material prices continues to be the key risks.

Order‐book stands at highest ever Rs31bn: Of the Rs31bn order book, Rs20.5bn

is EPC, Rs2.36bn EHV, Rs2bn sub‐stations and Rs6.13bn pertains to cables. In the

cables business orders, Rs1.1bn is exports.

Strong Growth in EPC division: Revenues from the EPC business was Rs3.2bn

(excl. sales to the cables division) for 9M FY17, registering 36% growth YoY. The

current EPC order book is Rs20.52bn, including orders from transmission and

distribution in Uttar Pradesh and some from Karnataka, Telangana, J&K, Kerala

and West Bengal.

Sharp rise in Working capital cycle: The working capital cycle has increased

sharply to 102 days as on H1FY17 against 81 days in FY16. This is largely due to a

rise in debtors days to 101 vs 90 in FY16, partly due to retention money. About

Rs700mn of retention money is pending, which would be realized by Q1FY18.


Revenues (Rs m) 16,584 16,189 20,310 23,256

Growth (%) (3.7) (2.4) 25.5 14.5

EBITDA (Rs m) 1,705 1,530 1,929 2,423

PAT (Rs m) 264 116 342 627

EPS (Rs) 3.8 1.6 4.4 8.1

Growth (%) 3.2 (58.1) 181.9 83.0

Net DPS (Rs) 0.2 0.2 0.4 0.6


EBITDA margin (%) 10.3 9.5 9.5 10.4

RoE (%) 10.9 4.4 11.9 18.9

RoCE (%) 14.0 10.1 15.1 18.3

EV / sales (x) 0.7 0.8 0.7 0.6

EV / EBITDA (x) 7.3 8.8 6.8 5.8

PE (x) 32.8 78.2 27.7 15.2

P / BV (x) 3.4 3.3 3.1 2.6



32 March 20, 2017

KEI Industries


Y/e March 2013 2014 2015 2016

Net Revenue 16,584 16,189 20,310 23,256


Gross Profit 4,497 4,109 5,540 7,109


Other Expenses 2,330 2,062 2,991 3,858

EBITDA 1,705 1,530 1,929 2,423


Net Interest 1,094 1,115 1,204 1,270



Total Tax 167 102 186 323



Adj. PAT 264 116 342 627

Avg. Shares O/S (m) 70.2 73.7 77.2 77.2

EPS (Rs.) 3.8 1.6 4.4 8.1


Y/e March 2013 2014 2015 2016

C/F from Operations 1,493 835 1,979 1,858


C/F from Financing (1,230) (727) (1,811) (868)

Inc. / Dec. in Cash 113 (111) 1 12



FCFF 1,342 616 1,812 880

FCFE


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) (3.7) (2.4) 25.5 14.5

EBITDA (%) 13.6 (10.3) 26.0 25.6

PAT (%) 8.3 (56.0) 195.2 83.0

EPS (%) 3.2 (58.1) 181.9 83.0

Profitability

EBITDA Margin (%) 10.3 9.5 9.5 10.4

PAT Margin (%) 1.6 0.7 1.7 2.7

RoCE (%) 14.0 10.1 15.1 18.3

RoE (%) 10.9 4.4 11.9 18.9

Balance Sheet

Net Debt : Equity 1.5 1.6 1.2 1.3


Valuation

PER (x) 32.8 78.2 27.7 15.2

P / B (x) 3.4 3.3 3.1 2.6

EV / EBITDA (x) 7.3 8.8 6.8 5.8

EV / Sales (x) 0.7 0.8 0.7 0.6

Earnings Quality

Eff. Tax Rate 38.8 46.8 35.2 34.0

Other Inc / PBT 5.5 5.9 4.5 5.2

Eff. Depr. Rate (%) 5.0 4.8 5.5 5.1

FCFE / PAT



Y/e March 2013 2014 2015 2016


Total Debt 3,895 4,435 3,758 4,688



Net Fixed Assets 3,115 3,143 3,025 3,200







Other Assets 168 258 399 510

Total Assets 6,578 7,350 7,064 8,582



Net Revenue 6,363 5,130 6,245 7,162

EBITDA 675 559 669 779

% of revenue 10.6 10.9 10.7 10.9


Net Interest 310 267 318 341



Total Tax 122 67 73 99


Adj. PAT 203 169 229 272


Manpasand Beverages


March 20, 2017


March 20, 2017 33

Management Representative: Mr. Dhruv Agarwal Director Mr. Abhishek Singh Director

Trading data


52 Week Low (Rs) 57


Major shareholders

Promoters 44.14%

Foreign 20.07%



Stock Performance

(%) 1M 6M 12M

Absolute 3.7 1.8 60.9

Relative 0.6 (2.5) 40.5

Price Performance (RIC:MANB.BO,BB:MANB IN)

0100200300400500600700800900

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

“Manpasand Beverages” operates in the fast growing packaged juice drink segment with its Flagship brand “Mango Sip”. In the Juices segment it operates with 2 brands “Mango sip” which is Mango fruit drink and “FruitsUp” which is a premium fruit drink with higher fruit content. “Fruits up” brand also offers differentiated carbonated fruit drink with real fruit content. 80% of MANB revenue is contributed by Mango Sip as on FY16. MANB is expected to emerge as a formidable player to large domestic players and MNC’s lead by the following factors:

Capacity to more than double in the next 2‐3 years: MANB is steadily increasing

its capacity over the last couple of years. It has recently commissioned it Ambala

facility with the total capacity of 50,000 cases/day after which it total capacity

increased to 165,000 cases/day. It had recently raised Rs.5bn through QIP and is

planning to open 4 new plants each with capacity of 50,000 cases/day

Push based model: MANB offers 5 to 10% higher margins as compared to its

competitors, it has a clear focus of increasing its top‐line and gaining market

share. They also provide incentives like “Pure Sip” brand of bottled water for

free along with Mango Sip and “Fruits Up” pack.

Rural and semi‐urban focused distribution: MANB has a wide distribution

network of 208 consignee agents and 860 distributors spread across 24 states to

which they sell directly. Its core focus areas are Rural and semi‐urban areas

where MNC and large domestic players are not strong.

Expanding portfolio and differentiated offering: MANB is expanding its

portfolio with a differentiated offering of fruit based carbonated soft drink with

Real fruit content which is a healthier and differentiated offering. It has also

launched COCO‐SIP which is 100% Natural packaged Tender coconut water in

200ml pet bottle.


Revenues (Rs m) 2,402 2,943 3,597 5,567

Growth (%) ‐ 22.5 22.2 54.7

EBITDA (Rs m) 387 457 641 1,104

PAT (Rs m) 224 205 299 506

EPS (Rs) 89.4 82.0 8.0 10.1

Growth (%) ‐ (8.4) (90.3) 26.7

Net DPS (Rs) ‐ ‐ ‐ 1.0


EBITDA margin (%) 16.1 15.5 17.8 19.8

RoE (%) ‐ 23.9 20.9 12.8

RoCE (%) ‐ 20.5 18.3 13.0

EV / sales (x) 10.5 8.6 76.0 65.2

EV / EBITDA (x) 64.9 55.4 426.3 32.0

PE (x) 8.1 8.8 90.9 71.7

P / BV (x) 2.4 1.9 14.3 6.0



34 March 20, 2017

Manpasand Beverages


Y/e March 2013 2014 2015 2016

Net Revenue 2,402 2,943 3,597 5,567


Gross Profit 923 1,218 1,504 2,312



EBITDA 387 457 641 1,104





Total Tax 22 26 34 62



Adj. PAT 224 205 299 506

Avg. Shares O/S (m) 3 3 38 50

EPS (Rs.) 89 82 8 10


Y/e March 2013 2014 2015 2016


C/F from Investing (475) (147) (1,582) (3,126)

C/F from Financing 187 114 1,051 2,359

Inc. / Dec. in Cash 31 (10) (4) 9



FCFF (198) (128) (1,041) (1,373)

FCFE (10) (9) (725) (2,597)


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) N.A 22.5 22.2 54.7

EBITDA (%) N.A 18.0 40.3 72.2

PAT (%) N.A (8.4) 46.1 68.8

EPS (%) N.A (8.4) (90.3) 26.7

Profitability

EBITDA Margin (%) 16.1 15.5 17.8 19.8

PAT Margin (%) 9.3 7.0 8.3 9.1

RoCE (%) 20.5 18.3 13.0

RoE (%) 23.9 20.9 12.8

Balance Sheet

Net Debt : Equity 0.6 0.7 0.6 (0.2)


Valuation

PER (x) 8.1 8.8 90.9 71.7

P / B (x) 2.4 1.9 14.3 6.0

EV / EBITDA (x) 64.9 55.4 426.3 32.0

EV / Sales (x) 10.5 8.6 76.0 65.2

Earnings Quality

Eff. Tax Rate 9.1 11.4 10.2 10.9

Other Inc / PBT 1.3 0.2 1.2 16.1

Eff. Depr. Rate (%) 9.5 12.3 15.3 15.3

FCFE / PAT (0.0) (0.0) (2.4) (5.1)



Y/e March 2013 2014 2015 2016


Total Debt 548 743 1,166 ‐

Other Liabilities (2) 0 (1) (1)


Net Fixed Assets 926 919 2,163 4,023

Goodwill

Investments

Net Current Assets


Other Current Assets 637 1,009 1,297 1,651


Other Assets 14 9 ‐ ‐

Total Assets 1,302 1,701 3,074 6,015



Net Revenue 2,304 2,369 1,064 1,062

EBITDA 428 453 222 205

% of revenue 18.6 19.1 20.9 19.3





Total Tax 31 33 7 13


Adj. PAT 255 286 54 72


Prabhat Dairy


March 20, 2017


March 20, 2017 35

Management Representative: Mr. Vivek Nirmal Jt. M.D. & CEO Mr. Raviraj Vahadane CFO

Trading data


52 Week Low (Rs) 76


Major shareholders

Promoters 44.37%

Foreign 2.75%



Stock Performance

(%) 1M 6M 12M

Absolute (5.0) 25.7 14.0

Relative (8.1) 21.4 (6.3)

Price Perf. (RIC: PRDA.BO, BB: PRABHAT IN)

020406080

100120140160

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Prabhat Dairy (PDL) is an integrated milk and dairy products company catering to Institutional as well as Retail customers. PDL has production facilities at Srirampur (Ahmednagar District) and at Navi Mumbai, with an aggregate milk processing capacity of 1.5m LPD. PDL procures ~900k litres of milk from 75000 farmers, registered vendors and milk collection centres. The company is aiming at accelerating growth by entry in high growth segments like Cheese, Paneer and Shrikhand and increasing the share of B2C segment from current 25% to 50% in coming 3‐4 years.

SMP, Pouch Milk and Condensed Milk are 82% of sales: 82% of PDL’s revenues are contributed by three main product segments i.e. Milk powders (SMP, WMP and DW 30%), Condensed and Concentrated Milk (28%) and Processed and pouched milk (24%). PDL is looking at increasing sales of other value‐added products like Cheese, Paneer, Curd, Flavored Milk, Ghee etc. in the coming years.

Aiming for 50% branded sales in 3‐5 years: PDL derives 70% of sales from B2B segment (85% in FY13) and is a supplier to Mondelez, Abbott, Britannia Inds and Mother Dairy etc. PDL is focusing on brand building and increasing retail sales under its brands like Prabhat, Milk Magic and Flava. It is aiming for 50% contribution from retail sales in the next 3‐5 years.

Direct Milk procurement and B2B business enables higher margins: PDL has above industry average EBITDA margins of 10‐10.5% due to 1) direct milk procurement from farmers within 70‐80km of its Ahmednagar unit 2) lower advertising spend due to higher B2B sales and 3) cost plus pricing with B2B customers.

Major Capex over, debt unlikely to increase from current levels: PDL has commissioned cheese unit and has repaid Rs2.4bn debt which would reduce interest cost and improve profits. Although working capital intensity will remain in line with industry, limited capex requirements, increasing share of B2C will improve financials and return ratios in the coming years.


Revenues (Rs m) 6,411 8,567 10,034 11,705

Growth (%) ‐ 33.6 17.1 16.7

EBITDA (Rs m) 728 907 1,035 1,192

PAT (Rs m) 141 208 260 245

EPS (Rs) 8.3 7.7 3.6 2.5

Growth (%) ‐ (7.8) (52.5) (31.0)

Net DPS (Rs) ‐ ‐ ‐ 0.4


EBITDA margin (%) 11.4 10.6 10.3 10.2

RoE (%) ‐ 7.5 7.8 4.9

RoCE (%) ‐ 14.4 13.3 14.2

EV / sales (x) 0.7 0.7 1.3 1.1

EV / EBITDA (x) 6.5 6.9 12.2 11.3

PE (x) 14.8 16.0 33.7 48.8

P / BV (x) 0.9 1.0 2.5 1.8



36 March 20, 2017

Prabhat Dairy


Y/e March 2013 2014 2015 2016

Net Revenue 6,411 8,567 10,034 11,705


Gross Profit 1,375 1,841 2,272 2,608



EBITDA 728 907 1,035 1,192


Net Interest 297 330 412 427



Total Tax 55 45 29 136



Adj. PAT 141 208 260 245

Avg. Shares O/S (m) 17 27 71 98

EPS (Rs.) 8.3 7.7 3.6 2.5


Y/e March 2013 2014 2015 2016


C/F from Investing (1,102) (611) (533) (243)

C/F from Financing 574 503 691 (130)

Inc. / Dec. in Cash 29 (23) 173 (86)



FCFF (592) (581) (479) (17)

FCFE (1,055) (679) 280 (2,976)


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) N.A 33.6 17.1 16.7

EBITDA (%) N.A 24.7 14.1 15.2

PAT (%) N.A 47.7 25.1 (5.6)

EPS (%) N.A (7.8) (52.5) (31.0)

Profitability

EBITDA Margin (%) 11.4 10.6 10.3 10.2

PAT Margin (%) 2.2 2.4 2.6 2.1

RoCE (%) ‐ 14.4 13.3 14.2

RoE (%) ‐ 7.5 7.8 4.9

Balance Sheet

Net Debt : Equity 1.1 0.9 1.1 0.2


Valuation

PER (x) 14.8 16.0 33.7 48.8

P / B (x) 0.9 1.0 2.5 1.8

EV / EBITDA (x) 6.5 6.9 12.2 11.3

EV / Sales (x) 0.7 0.7 1.3 1.1

Earnings Quality

Eff. Tax Rate 27.9 17.8 10.0 35.7

Other Inc / PBT 4.2 3.9 3.4 3.8

Eff. Depr. Rate (%) ‐ ‐ 8.0 6.7

FCFE / PAT (7.5) (3.3) 1.1 (12.1)



Y/e March 2013 2014 2015 2016


Total Debt 2,714 2,946 4,118 1,586



Net Fixed Assets 3,416 4,109 4,649 4,542

Goodwill

Investments 0 1 1 1

Net Current Assets




Other Assets ‐ 0 5 6

Total Assets 5,239 6,308 7,812 8,371



Net Revenue 3,083 2,931 3,245 4,081

EBITDA 278 248 276 377

% of revenue 9.0 8.5 8.5 9.2





Total Tax 22 14 15 24


Adj. PAT 82 60 89 166


Royal Orchid Hotels


March 20, 2017


March 20, 2017 37

Management Representative: Mr. Chander Baljee CMD Mr. Amit Jaiswal CFO

Trading data


52 Week Low (Rs) 61


Major shareholders

Promoters 70.77%

Foreign 0.00%



Stock Performance

(%) 1M 6M 12M

Absolute 6.9 33.7 20.8

Relative 3.8 29.4 0.4

Price Performance (RIC: ROYL.BO, BB: ROHL IN)

0

20

40

60

80

100

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Royal Orchid Hotel Limited (ROHL) is a well known mid‐sized hotel player, operating under ‘Royal Orchid’ & ‘Regenta’ brands operational since 1986. The hotel chain comprises 5 and 4 star properties for business and leisure travellers and has an inventory of 2,974 rooms spread across 39 operational properties pan India. The business has been struggling since FY12 primarily due to the combined effect of increased number of room availability, economic downturn and higher finance costs. It filed for CDR in FY13, however exited CDR successfully by selling its Hyderabad Property. Currently, the occupancy levels are looking up and the management expects realizations to firm up in subsequent quarters. ROHL continues to expand on asset light strategy with a combination of leased properties, part ownership & management contracts (MC). ROHL is currently in a comfortable position with reduced debt burden and option for further deleveraging by hiving off non‐core assets. Business is expected to show a marginal turnaround considering improving occupancy, insignificant capex and lower finance costs. ROHL has returned back to the dividend list after a gap of seven years.

Asset‐light business model to help scale up operations: ROHL has been scaling

up its operations using management contracts and is avoiding asset ownership

over the past 3‐4 years. This model doesn’t result in higher revenue growth, but

has a fixed revenue share and thus RoCE accretive. Currently it has2,061 rooms

under MC out of 2,974 room inventory

Sell of non‐core assets to result in debt free B/S: ROHL is looking to sell some of

its non‐core assets (Mumbai & Tanzania) over the next 12‐18months to further

deleverage its balance sheet. It has already roped in a consultant to dispose off a

land parcel of 1.15 acres in Powai, Mumbai. If any deal gets finalized, it can fetch

~Rs700‐800m as per our estimates.


Revenues (Rs m) 1,603 1,420 1,478 1,585

Growth (%) (0.2) (11.4) 4.0 7.3

EBITDA (Rs m) 181 208 200 203

PAT (Rs m) (77) (375) (38) (13)

EPS (Rs) (2.8) (13.8) (1.4) (0.5)

Growth (%) NA NA NA NA

Net DPS (Rs) 0.0 0.0 0.0 0.0


EBITDA margin (%) 11.3 14.6 13.5 12.8

RoE (%) (3.5) (19.8) (2.3) (0.8)

RoCE (%) 0.4 0.8 2.4 3.5

EV / sales (x) 2.9 2.2 2.0 1.9

EV / EBITDA (x) 26.1 14.7 15.2 14.7

PE (x) NA NA NA NA

P / BV (x) 1.2 1.4 1.5 1.5



38 March 20, 2017

Royal Orchid Hotels


Y/e March 2013 2014 2015 2016

Net Revenue 1,603 1,420 1,478 1,585


Gross Profit 1,414 1,243 1,287 1,378



EBITDA 181 208 200 203


Net Interest 172 193 164 149


Profit before Tax (129) (65) (57) (28)

Total Tax (1) (38) 10 8

Profit after Tax (77) (375) (38) (13)

Ex‐Od items / Min. Int. ‐ ‐ 20 13

Adj. PAT (77) (375) (58) (26)

Avg. Shares O/S (m) 27 27 27 27

EPS (Rs.) (2.8) (13.8) (1.4) (0.5)


Y/e March 2013 2014 2015 2016


C/F from Investing 10 1,654 (12) (72)

C/F from Financing (591) (1,548) (604) (164)

Inc. / Dec. in Cash (93) 256 (230) (3)



FCFF 498 1,804 374 161

FCFE


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) (0.2) (11.4) 4.0 7.3

EBITDA (%) (30.8) 14.8 (4.0) 1.9

PAT (%) NA NA NA NA

EPS (%) NA NA NA NA

Profitability

EBITDA Margin (%) 11.3 14.6 13.5 12.8

PAT Margin (%) (4.8) (26.4) (2.6) (0.8)

RoCE (%) 0.4 0.8 2.4 3.5

RoE (%) (3.5) (19.8) (2.3) (0.8)

Balance Sheet

Net Debt : Equity 1.1 0.4 0.4 0.4

Net Wrkng Cap. (days) (20) (16) 2 (12)

Valuation

PER (x) NA NA NA NA

P / B (x) 1.2 1.4 1.5 1.5

EV / EBITDA (x) 26.1 14.7 15.2 14.7

EV / Sales (x) 2.9 2.2 2.0 1.9

Earnings Quality

Eff. Tax Rate 0.4 59.5 NA NA

Other Inc / PBT NA NA NA NA

Eff. Depr. Rate (%) 2.9 4.0 4.2 4.0

FCFE / PAT



Y/e March 2013 2014 2015 2016


Total Debt 2,393 1,012 745 697



Net Fixed Assets 4,816 2,682 2,502 2,424

Goodwill 177 177 177 177


Net Current Assets (438) (196) (308) (363)





Total Assets 4,963 3,145 2,769 2,713



Net Revenue 242 194 192 221

EBITDA 38 11 26 40

% of revenue 15.7 5.9 13.3 18.1




Profit before Tax 30 (5) 27 42

Total Tax ‐ ‐ ‐ ‐

Profit after Tax 30 (5) 27 42

Adj. PAT 30 (5) 27 42


SREI Infrastructure Finance


March 20, 2017


March 20, 2017 39

Management Representative: Mr. Sanjeev Sancheti Gr. Head – Corp. Strategy & Planning Mr. Amit Agarwal IR

Trading data


52 Week Low (Rs) 42


Major shareholders

Promoters 60.80%

Foreign 13.47%



Stock Performance

(%) 1M 6M 12M

Absolute (4.8) 27.8 69.7

Relative (7.9) 23.5 49.3

Price Performance (RIC: SREI.BO, BB: SREI IN)

0

20

40

60

80

100

120

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

SREI Infra is a Kanoria family promoted company based out of Kolkata. SREI has positioned itself as an infrastructure solution provider offering varied solutions. It is present in equipment financing with largest market share of 30%. It is also into infrastructure financing & advisory which could be a combination of equity, debt or mezzanine. SREI has total AUM of Rs375 bn with Rs208.8 bn in equipment finance & Rs143.2 bn in infra finance. As the economic activity is improving, SREI is renewing its strategy and focusing on its core business by (i) strong comeback of demand in equipment (ii) improving capital efficiency by monetizing strategic investments and invest in focus businesses.

Focusing on equipment finance business: SREI has started focusing back on its

construction equipment business as industry trends are improving and business

picking up especially in road, irrigation and contract mining sector. SREI expect

25‐30% CAGR in next 3 years from the current AUM of ~Rs209bn and RoA

between 2 to 2.5% by improving fee income and lowering credit costs.

Infrastructure business to improve hereon: SREI doesn’t intend to grow its infra

financing book and wants to focus more on structured financing and generating

fee income and thus improve RoE.

Monetization of assets on track: SREI has already exited telecom tower

business held via VIOM for ~Rs22 bn and also the swap sale with BNP Paribas

has been successful. Going ahead, they looking for an IPO of the road assets

held in a subsidiary, BRNL by dilution of 25 ‐ 30% stake and raising around Rs 7.5

– 12bn. Also it intends to find a strategic partner in rural distribution business

i.e. Sahej.

Key Financials (Y/e March) 2013 2014 2015 2016

Net interest income (Rs m) 4,850 4,830 7,550 6,420

Growth (%) 25.7 (0.4) 56.3 (15.0)

Non‐interest income (Rs m) 4,110 3,300 3,580 1,370

Operating Profit (Rs m) 4,160 4,320 6,880 3,950

PAT (Rs m) 2,634 1,389 1,287 726

EPS (Rs) 5.2 2.8 2.6 1.4

Growth (%) 135.3 (47.3) (7.4) (43.6)

Net DPS (Rs) 0.5 0.5 0.6 0.5

Profitability & valuation 2013 2014 2015 2016

Spreads / Margins (%) 2.9 2.6 3.8 3.0

RoAE (%) 8.0 4.0 3.6 2.0

RoAA (%) 1.2 0.6 0.5 0.3

P/E (x) 1.4 1.3 1.3 1.3

P/BV (x) 1.7 1.8 1.9 1.6

P/ABV (x) 17.9 33.9 36.5 64.8



40 March 20, 2017

Royal Orchid Hotels


Y/e March 2013 2014 2015 2016

Int. Inc. / Opt. Inc. 25,760 27,950 30,160 29,360

Interest Expenses 20,910 23,120 22,610 22,940

Net interest income 4,850 4,830 7,550 6,420

Growth (%) 25.7 (0.4) 56.3 (15.0)

Non interest income 4,110 3,300 3,580 1,370

Growth (%) 13.3 (19.7) 8.5 (61.7)

Net operating income 8,960 8,130 11,130 7,790

Expenditure

Employees 1,614 1,294 1,443 1,449

Other expenses 3,186 2,516 2,807 2,391

Total expenditure 4,800 3,810 4,250 3,840

PPP 4,160 4,320 6,880 3,950

Growth (%) 7.7 3.8 59.3 (42.6)

Provision 1,090 1,680 4,870 2,720

Exchange Gain / (Loss) (480) (380) (130) (170)

Exceptional items 1,040 0 0 0

Profit before tax 3,630 2,260 1,880 1,060

Tax 1,027 881 670 444

Effective tax rate (%) 28.3 39.0 35.7 41.9

PAT 2,634 1,389 1,287 726

Growth (%) 135.3 (47.3) (7.4) (43.6)

Int. Inc. / Opt. Inc. 25,760 27,950 30,160 29,360

Balance Sheet (Rs m)

Y/e March 2013 2014 2015 2016

Sources of funds

Equity 5,032 5,032 5,032 5,032

Reserves & Surplus 28,938 29,936 30,814 31,218

Networth 33,970 34,969 35,846 36,250

Growth (%) 6.9 2.9 2.5 1.1

Loan funds 182,820 197,670 203,258 206,727

Growth (%) 14.9 8.1 2.8 1.7

Others 7,917 8,483 7,693 10,687

Minority Interest 274 297 126 12

Deferred Tax Liability 1,610 1,630 2,017 1,701

Total 226,591 243,048 248,939 255,376

Application of funds

Net fixed assets 18,798 21,021 18,591 17,397

Advances 183,980 192,800 207,420 219,980

Growth (%) 22.2 4.8 7.6 6.1

Net current assets 0 0 0 0

Investments 24,790 24,196 22,499 21,698

Growth (%) 16.8 (2.4) (7.0) (3.6)

Other Assets (976) 5,031 429 (3,699)

Total 226,591 243,048 248,939 255,376




Int. Inc. / Operating Inc. 7,360 6,720 9,710 9,620

Income from securitization 0 0 0 0

Interest Expenses 5,800 5,300 6,870 7,090

Net Interest Income 1,560 1,420 2,840 2,530

Non interest income 470 4,000 480 780

Net operating income 2,030 5,420 3,320 3,310

Operating expenditure 1,090 1,090 1,480 1,670

PPP 940 4,330 1,840 1,640

Provision 690 3,590 980 650

Exchange Gain / (Loss) 0 0 0 0

Profit before tax 250 740 860 990

Tax (10) 40 (50) 10

Prov. for deferred tax liability 0 0 0 0

Effective tax rate (%) (4.0) 5.4 (5.8) 1.0

PAT 210 520 620 670

Key Ratios

Y/e March 2013 2014 2015 2016

CMP (Rs) 94 94 94 94

Eq. Shrs. O/s. (m) 503 503 503 503

Market Cap (Rs m) 47,305 47,305 47,305 47,301

Market Cap to AUM (%) 14.2 13.9 13.4 12.9

EPS (Rs) 5.2 2.8 2.6 1.4

Book Value (Rs) 67.5 69.5 71.2 72.0

Adjusted Book Value (Rs) 54.8 50.5 48.5 59.3

P/E (x) 18.0 34.1 36.8 65.2

P/BV (x) 1.4 1.4 1.3 1.3

P/ABV (x) 1.7 1.9 1.9 1.6

DPS (Rs) 0.5 0.5 0.6 0.5

Dividend Yield (%) 0.5 0.5 0.6 0.5

Asset Quality

Y/e March 2013 2014 2015 2016

Gross NPAs (Rs m) 8,001 11,476 14,480 8,729

Net NPAs (Rs m) 6,385 9,542 11,429 6,389

Gross NPAs to Gross Adv. (%) 2.4 3.4 4.1 3.4

Net NPAs to Net Adv. (%) 1.9 2.8 3.2 2.5

NPA Coverage (%) 20.2 16.8 21.1 26.8

Profitability (%)

Y/e March 2013 2014 2015 2016

NIM on Loans 2.90 2.56 3.77 3.00

NIM on AUM 1.63 1.43 2.17 1.78

RoAA 1.23 0.59 0.52 0.29

RoAE 8.01 4.03 3.63 2.01



March 20, 2017 41

Notes

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42 March 20, 2017

March 24

Apcotex Industries


March 20, 2017


March 20, 2017 43

Management Representative: Mr. Anand Kumashi GM – Finance & CS

Trading data




Major shareholders

Promoters 57.90%

Foreign 0.00%



Stock Performance

(%) 1M 6M 12M

Absolute (6.6) (21.6) 59.5

Relative (9.7) (25.9) 39.1

Price Performance (RIC: APCI.BO, BB: APCO IN)

050

100150200250300350400450

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Apcotex was established in the year 1980 as a division of Asian Paints (India) Ltd, the largest paint manufacturer in India. It spun‐off as a separate company in 1991 and is headed by Mr. Atul Choksey, former MD of Asian Paints. Apcotex pioneered the production of Vinyl Pyridine Latex in India, an important raw material for the tyre industry. Subsequently, products such as Carboxylated Styrene Butadiene Latexes, Synthetic Rubbers and Acrylic Latexes were developed in‐house. Today, it has one of the broadest ranges of products based on STYRENE – BUTADIENE Chemistry available in the market. Key applications for Synthetic latexes include Tyre Cord Dipping, Paper/Board Coating, Carpet Backing, Construction (Concrete Modification, Water Proofing, etc.), Paints, Textile Finishing and Automotive Components whereas Synthetic Rubber finds applications in footwear, automotive components, v‐belts, conveyer belts and hoses.

Acquisition of OMNOVA Solutions to aid growth: Apcotex acquired OMNOVA

Solutions, the only producer of Nitrile rubber in India, for a consideration of

Rs360m in all cash deal to expand its product portfolio & increase addressable

market. It intends to further invest Rs250‐300m in short to medium term for

cost optimisation & de‐bottlenecking. Omnova Solutions have grossed a

turnover of Rs1.87bn for CY15 and has margins in the range of 8‐10%.

Facing some challenges due to RM price surge: Apcotex is facing some

challenges for last 6‐9 months in terms of high prices for key RM (butadiene

prices up 30% YoY) & shutdown of facility by a major customer in paper & paper

board segment which accounts for 35%+ contribution to revenues.

Labour unrest have settled, plant operational now: The labour unrest in Jan‐

Feb at its Taloja facilty has resulted in revenue loss of Rs220‐250m and shift of

production to Valia (Gujarat) plant which is relatively less efficient. However, the

labour unrest is over from first week of March, and the business is back as usual.


Revenues (Rs m) 2,734 2,970 3,551 2,684

Growth (%) 7.2 8.6 19.5 (24.4)

EBITDA (Rs m) 235 251 415 374

PAT (Rs m) 128 131 247 247

EPS (Rs) 6.1 6.3 11.8 11.8

Growth (%) 11.7 2.6 87.8 (0.0)

Net DPS (Rs) 4.5 5.0 7.0 4.5


EBITDA margin (%) 8.6 8.5 11.7 14.0

RoE (%) 17.3 16.1 26.7 23.2

RoCE (%) 10.9 11.0 17.4 15.7

EV / sales (x) 2.5 2.4 1.9 2.5

EV / EBITDA (x) 29.6 27.9 16.6 18.2

PE (x) 52.2 50.9 27.1 27.1

P / BV (x) 8.6 7.8 6.7 5.9



44 March 20, 2017

Apcotex Industries


Y/e March 2013 2014 2015 2016

Net Revenue 2,734 2,970 3,551 2,684


Gross Profit 671 704 1,049 928



EBITDA 235 251 415 374





Total Tax 52 35 101 88



Adj. PAT 128 131 247 247

Avg. Shares O/S (m) 10.4 10.4 10.4 20.9

EPS (Rs.) 6.1 6.3 11.8 11.8


Y/e March 2013 2014 2015 2016

C/F from Operations 279 99 319 (183)

C/F from Investing (280) (57) (76) 355

C/F from Financing (188) (135) (260) (168)

Inc. / Dec. in Cash (189) (93) (17) 4



FCFF (1) 42 243 172

FCFE


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) 7.2 8.6 19.5 (24.4)

EBITDA (%) 14.6 6.8 65.0 (9.7)

PAT (%) 11.7 2.6 87.8 (0.0)

EPS (%) 11.7 2.6 87.8 (0.0)

Profitability

EBITDA Margin (%) 8.6 8.5 11.7 14.0

PAT Margin (%) 4.7 4.4 7.0 9.2

RoCE (%) 10.9 11.0 17.4 15.7

RoE (%) 17.3 16.1 26.7 23.2

Balance Sheet

Net Debt : Equity 0.3 0.4 0.2 0.1


Valuation

PER (x) 52.2 50.9 27.1 27.1

P / B (x) 8.6 7.8 6.7 5.9

EV / EBITDA (x) 29.6 27.9 16.6 18.2

EV / Sales (x) 2.5 2.4 1.9 2.5

Earnings Quality

Eff. Tax Rate 29.0 21.1 29.1 26.2

Other Inc / PBT (0.1) 14.6 16.0 22.0

Eff. Depr. Rate (%) 2.8 5.7 7.4 7.2

FCFE / PAT



Y/e March 2013 2014 2015 2016

Shareholder's Funds 782 853 998 1,132

Total Debt 424 396 228 169











Total Assets 1,293 1,340 1,312 1,375



Net Revenue 961 1,064 925 1,042

EBITDA 109 107 47 62

% of revenue 11.3 10.0 5.1 5.9





Total Tax ‐88 23 1 ‐6


Adj. PAT 225 69 36 52


Balrampur Chini Mills


March 20, 2017


March 20, 2017 45

Management Representative: Mr. Pramod Patwari CFO

Trading data


52 Week Low (Rs) 95


Major shareholders

Promoters 40.94%

Foreign 15.74%



Stock Performance

(%) 1M 6M 12M

Absolute (5.1) 34.3 54.6

Relative (8.2) 30.0 34.2

Price Performance(RIC: BACH.BO, BB: BRCM IN)

020406080

100120140160180

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Balrampur Chini (BCML) is the third largest sugar producer in India with cane crushing capacity of 76,500TCD located across 10 locations in UP. Company has integrated operations with distillery and co‐generation capacity of 320 KLPD and 153MW respectively. With economies of scale, location advantage and technology adoption, company is one of the lowest cost producers and has recovery rate above 11%. Lower opening inventory along with lower production in major states of Maharashtra & Karnataka due to adverse weather conditions have led to higher sugar prices, benefitting the industry. Management has guided for reduction of LT debt from Rs6.8bn in March 2016 to Rs2.2bn in March 2017 with no major capex in near term.

Healthy realizations of Rs35/kg in 9MFY17 have aided profitability: Healthy







Distillery and Co‐generation continue to witness improved dynamics:

Realizations of ethanol is at Rs 39/ltr ex factory currently Vs the current cost of

production @ Rs 22/ltr and payment is received between 30‐35 days from

OMC’s. BCML has also won bids to supply ~70 mn ltrs of ethanol over the next

12 months. Also, BCML has 153MW of excess power saleable on a long term PPA

to UP grid at Rs 4.8/unit. The current cost of production is Rs 2/unit and

payment is received in 90‐120 days. In FY16, Distillery and power contributed

EBIT of Rs 3.1bn which is significant diversification considering the vagaries of

the sugar business


Revenues (Rs m) 32,748 26,649 29,870 27,567

Growth (%) 41.8 (18.6) 12.1 (7.7)

EBITDA (Rs m) 4,198 2,181 1,264 4,193

PAT (Rs m) 1,613 85 (580) 993

EPS (Rs) 6.6 0.3 (2.4) 4.1

Growth (%) NA (94.8) NA NA

Net DPS (Rs) 2.0 0.0 0.0 0.0


EBITDA margin (%) 12.8 8.2 4.2 15.2

RoE (%) 12.8 0.7 (4.9) 8.4

RoCE (%) 7.7 1.8 0.3 9.9

EV / sales (x) 1.4 1.7 1.6 1.7

EV / EBITDA (x) 10.9 20.6 38.1 11.4

PE (x) 20.3 388.0 (56.6) 33.0

P / BV (x) 2.5 2.7 2.9 2.7

Net dividend yield (%) 1.5 ‐ ‐ ‐


46 March 20, 2017

Balrampur Chini Mills


Y/e March 2013 2014 2015 2016

Net Revenue 32,748 26,649 29,870 27,567


Gross Profit 7,559 5,740 4,770 7,804

Employee Cost 1,295 1,417 1,503 1,514

Other Expenses 2,067 2,143 2,003 2,097

EBITDA 4,198 2,181 1,264 4,193


Net Interest 1,439 1,178 1,021 756

Other Income 423 268 152 446

Profit before Tax 2,098 175 (764) 1,049

Total Tax 485 90 (184) 56

Profit after Tax 1,613 85 (580) 993

Ex‐Od items / Min. Int. 0 0 ‐ ‐

Adj. PAT 1,613 84 (580) 2,724

Avg. Shares O/S (m) 245 245 245 245

EPS (Rs.) 6.6 0.3 (2.4) 4.1


Y/e March 2013 2014 2015 2016

C/F from Operations 5,556 4,623 (763) 1,468

C/F from Investing (93) (635) (230) (1,466)

C/F from Financing (3,706) (4,469) 378 (700)

Inc. / Dec. in Cash 1,758 (481) (616) (699)

Opening Cash 104 1,867 1,386 770

Closing Cash 1,862 1,386 770 72

FCFF 5,464 3,988 (994) 1

FCFE


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) 41.8 (18.6) 12.1 (7.7)

EBITDA (%) 76.4 (48.1) (42.0) 231.6

PAT (%) 37,032 (94.8) (785.2) (271.3)

EPS (%) 37,032 (94.8) (785.2) (271.3)

Profitability

EBITDA Margin (%) 12.8 8.2 4.2 15.2

PAT Margin (%) 4.9 0.3 (1.9) 3.6

RoCE (%) 7.7 1.8 0.3 9.9

RoE (%) 12.8 0.7 (4.9) 8.4

Balance Sheet

Net Debt : Equity 1.0 1.0 1.4 1.2


Valuation

PER (x) 20.3 388.0 (56.6) 33.0

P / B (x) 2.5 2.7 2.9 2.7

EV / EBITDA (x) 10.9 20.6 38.1 11.4

EV / Sales (x) 1.4 1.7 1.6 1.7

Earnings Quality

Eff. Tax Rate 23.1 51.7 24.1 5.4

Other Inc / PBT 20.2 153.7 (19.9) 42.5

Eff. Depr. Rate (%) 4.2 4.1 4.3 4.0

FCFE / PAT



Y/e March 2013 2014 2015 2016


Total Debt 14,897 13,511 16,157 15,040



Net Fixed Assets 15,283 15,246 13,843 14,265


Investments 2,795 2,829 3,013 1,350


Cash & Equivalents 1,912 1,435 822 91



Other Assets 39 234 2,778 615

Total Assets 30,501 28,393 29,808 29,557



Net Revenue 7,706 7,893 8,875 9,373

EBITDA 3,116 1,858 1,727 2,463

% of revenue 40.4 23.5 19.5 26.3





Total Tax 55 324 315 524

Profit after Tax 988 1,107 1,060 1,752

Adj. PAT 2,677 1,107 1,060 1,752


Banswara Syntex


March 20, 2017


March 20, 2017 47

Management Representative: Mr. Ravindra Toshniwal MD

Trading data


52 Week Low (Rs) 85


Major shareholders

Promoters 59.16%

Foreign 0.00%



Stock Performance

(%) 1M 6M 12M

Absolute 2.5 (11.3) 70.3

Relative (0.6) (15.6) 49.9

Price Performance (RIC: BANS.BO, BB: BWSL IN)

0

50

100

150

200

250

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Banswara Syntex Limited (BSL) is a vertically integrated textile mill manufacturing man‐made synthetic blended Yarn, wool and wool mixed yarn, all type of Fabrics, Jacquard Furnishing Fabrics, besides production of Readymade Garments and Made‐up's. Yarn division forms 40% of revenues and BSL is the largest producer of lycra based yarns in India. Fabric division contributes 37% to revenues and balance is contributed by the garment segment. Domestic clientele includes Arrow, Van Heusen, Wills Classic, Raymonds, Indigo Nation, Madura Garments etc. BSL aspires to have global collaborations by positioning itself as a value added B2B brand that provides design solutions and products in the challenging environment of fast fashion. In line with this vision, BSL has its design studio in Paris and has recruited skilled personnel who understand global fashion. BSL currently exports to over 60 countries and is cuurently working with one of the world’s best labels like JC Penny, Target, Tesco, GAP, LEVI’s etc. The business is well hedged with a 50:50 mix of domestic and exports.

Focusing on moving up the value chain: BSL is increasing its presence in faster

growing product segments of value added yarn, fabrics and garments. The focus

is on targeting fast fashion retail giants, backed up by in house design studios in

Paris and India and capable marketing teams.

Capex cycle behind, focus on ramping up revenues: BSL has Invested over

Rs.4.94bn towards expansion and modernisation between FY 2010 – December

2016 and is expected to reap the benefits over next few yrs. It has invested in

upgradation of technologies and equipment. BSL has repaid debt of Rs320m in

H1FY17 and Rs 760m in FY16 with a schedule to repay Rs 600m annually.

Vertically integrated business model: BSL has vertically integrated business

model with in‐house manufacturing of spun yarn which is used for fabric

division. Further, the same fabric is used for garments division.


Revenues (Rs m) 10,963 12,154 12,306 12,702

Growth (%) 18.7 10.9 1.3 3.2

EBITDA (Rs m) 1,470 1,780 1,409 1,634

PAT (Rs m) 121 259 80 272

EPS (Rs) 7.3 16.7 4.9 16.1

Growth (%) 47.0 127.6 (70.7) 228.6

Net DPS (Rs) 1.5 3.0 1.0 2.0


EBITDA margin (%) 13.4 14.6 11.5 12.9

RoE (%) 6.6 12.9 3.7 11.6

RoCE (%) 6.3 7.7 4.9 7.6

EV / sales (x) 0.8 0.7 0.7 0.6

EV / EBITDA (x) 6.2 5.0 6.1 4.8

PE (x) 20.3 8.9 30.4 9.3

P / BV (x) 1.3 1.1 1.1 1.0



48 March 20, 2017

Banswara Syntex


Y/e March 2013 2014 2015 2016

Net Revenue 10,963 12,154 12,306 12,702


Gross Profit 3,529 4,327 4,056 4,485

Employee Cost 1,308 1,623 1,835 1,990


EBITDA 1,470 1,780 1,409 1,634


Net Interest 823 815 810 700



Total Tax 90 212 64 166


Ex‐Od items / Min. Int. ‐ (0) ‐ ‐

Adj. PAT 121 259 80 272

Avg. Shares O/S (m) 16.5 15.5 16.4 16.9

EPS (Rs.) 7.3 16.7 4.9 16.1


Y/e March 2013 2014 2015 2016



C/F from Financing (921) (610) (1,509) (1,428)

Inc. / Dec. in Cash 35 157 (158) 46

Opening Cash 129 164 332 174

Closing Cash 164 321 174 220

FCFF

FCFE


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) 18.7 10.9 1.3 3.2

EBITDA (%) 12.9 21.1 (20.8) 15.9

PAT (%) (18.9) 114.0 (69.0) 238.9

EPS (%) 47.0 127.6 (70.7) 228.6

Profitability

EBITDA Margin (%) 13.4 14.6 11.5 12.9

PAT Margin (%) 1.1 2.1 0.7 2.1

RoCE (%) 6.3 7.7 4.9 7.6

RoE (%) 6.6 12.9 3.7 11.6

Balance Sheet

Net Debt : Equity 3.5 3.1 2.8 2.2


Valuation

PER (x) 20.3 8.9 30.4 9.3

P / B (x) 1.3 1.1 1.1 1.0

EV / EBITDA (x) 6.2 5.0 6.1 4.8

EV / Sales (x) 0.8 0.7 0.7 0.6

Earnings Quality

Eff. Tax Rate 42.7 45.0 44.3 38.0

Other Inc / PBT 1.9 0.8 1.0 1.4

Eff. Depr. Rate (%) 6.4 6.0 6.7 6.3

FCFE / PAT



Y/e March 2013 2014 2015 2016


Total Debt 6,781 6,995 6,341 5,618



Net Fixed Assets 5,226 5,390 5,261 4,928

Goodwill






Other Assets 346 345 356 282

Total Assets 9,156 9,702 9,093 8,657



Net Revenue 3,484 2,973 3,242 3,044

EBITDA 465 387 309 351

% of revenue 13.3 13.0 9.5 11.5


Net Interest 166 155 158 161



Total Tax 61 39 10 16


Adj. PAT 116 78 26 42


Container Corporation of India

CMP: Rs1,242 Shares o/s: 195.0m Mcap: Rs242.0bn

March 20, 2017


March 20, 2017 49

Management Representative: Dr. P. Alli Rani CFO Mr. Sanjay Swarup Director – International Business

Trading data

52 Week High (Rs) 1,544

52 Week Low (Rs) 1,055


Major shareholders

Promoters 56.75%

Foreign 27.27%



Stock Performance

(%) 1M 6M 12M

Absolute 1.1 (5.3) 8.1

Relative (2.0) (9.6) (12.3)

Price Performance (RIC: CCRI.BO, BB: CCRI IN)

0200400600800

1,0001,2001,4001,600

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

CONCOR is the largest container train operator(CTO) with 3/4th of India’s container traffic handled by it and has unmatched infrastructure of 66 terminals across states, 13,000+ wagons, 21,000+ containers & other equipments. CONCOR is getting future ready with capex incurred to the tune of Rs40bn in the past 4‐5 yrs for creating Logistics Parks covering the Industrial corridors and Dedicated Freight corridors (DFCs) well ahead of other CTOs in India. CONCOR is seeing some revival in volumes, though growth is still in single digits and demonetization has further hurt the struggling domestic segment. Financials of CONCOR has been struggling for the past 18 months due to introduction of Port congestion charges, Service tax on container services and the most recent been increase in Land License Fees charged by the Railways. Most of these costs were absorbed by CONCOR and not passed to customers due to the weak overall macro and competitive road transport due to the fall in diesel rates thus straining margins. However, with some MMLPs (Khatuwas) coming into operation, significant scope of increasing double stacking and positive market response to time table trains CONCOR is getting back on earnings growth track in the medium term.

Khatuwas MMLP ‐ An important junction on DFC route: Khatuwas (Rajasthan)

MMLP has become fully operational from Q1FY17 which is strategically located

on Western DFC with >100 Japanese and Korean units situated around it. It is

state of the art logistics park spread across 283 acres catering to Port Terminals

of JNPT, Mundra, Pipavav, Hazira, other ports and all terminals of Concor across

of the country.

On track to achieve 12th Five Year plan capex guidance: Out of target capex of

Rs60bn during 12th five year plan (2012‐17), Concor has already spent Rs40bn+

till now with large chunk spent on terminal development. The split of Rs60bn

capex is ‐ Land‐Rs13bn, Terminal development ‐ Rs27bn, Equipments‐Rs17bn

& Others ‐Rs3bn.


Revenues (Rs m) 44,062 49,846 55,852 57,426

Growth (%) 8.5 13.1 12.1 2.8

EBITDA (Rs m) 10,476 11,019 13,080 10,815

PAT (Rs m) 9,401 9,848 10,475 7,869

EPS (Rs) 48.2 50.5 53.7 40.4

Growth (%) 4.3 4.8 6.4 ‐24.9

Net DPS (Rs) 17.5 12.3 13.4 13.5


EBITDA margin (%) 23.8 22.1 23.4 18.8

RoE (%) 15.8 14.8 14.3 10.0

RoCE (%) 10.9 32.0 9.9 6.5

EV / sales (x) 4.9 4.4 3.9 3.8

EV / EBITDA (x) 20.5 19.8 16.7 20.3

PE (x) 25.9 24.7 23.3 30.9

P / BV (x) 3.9 3.5 3.2 3.0



50 March 20, 2017

Container Corporation of India


Y/e March 2013 2014 2015 2016

Net Revenue 44,062 49,846 55,852 57,426


Gross Profit 13,492 14,718 17,544 15,321

Employee Cost 1,072 1,235 1,579 1,539

Other Expenses 1,944 2,464 2,885 2,967

EBITDA 10,476 11,019 13,080 10,815


Net Interest ‐ ‐ ‐ ‐

Other Income 3,326 3,583 3,470 ‐


Total Tax 2,721 2,995 2,469 2,740

Profit after Tax 9,401 9,848 10,475 7,869

Ex‐Od items / Min. Int. ‐ ‐ (1) (6)

Adj. PAT 9,401 9,848 10,476 7,875

Avg. Shares O/S (m) 195 195 195 195

EPS (Rs.) 48.2 50.5 53.7 40.4


Y/e March 2013 2014 2015 2016


C/F from Investing (5,040) (8,064) (7,616) (5,598)

C/F from Financing (2,568) (3,042) (3,081) (3,145)

Inc. / Dec. in Cash 1,589 (3,648) 367 (2,050)

Opening Cash 27,615 29,202 25,553 25,920

Closing Cash 29,204 25,554 25,920 23,870

FCFF 4,157 (607) 3,448 1,094

FCFE


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) 8.5 13.1 12.1 2.8

EBITDA (%) 2.3 5.2 18.7 (17.3)

PAT (%) 7.1 4.8 6.4 (24.9)

EPS (%) (28.6) 4.8 6.4 (24.8)

Profitability

EBITDA Margin (%) 23.8 22.1 23.4 18.8

PAT Margin (%) 21.3 19.8 18.8 13.7

RoCE (%) 10.9 32.0 9.9 6.5

RoE (%) 15.8 14.8 14.3 10.0

Balance Sheet

Net Debt : Equity (0.5) (0.4) (0.3) (0.3)


Valuation

PER (x) 25.9 24.7 23.3 30.9

P / B (x) 3.9 3.5 3.2 3.0

EV / EBITDA (x) 20.5 19.8 16.7 20.3

EV / Sales (x) 4.9 4.4 3.9 3.8

Earnings Quality

Eff. Tax Rate 22.4 23.3 19.1 25.8

Other Inc / PBT 0.3 0.3 0.3 0.3

Eff. Depr. Rate (%) 4.6 4.5 7.7 6.5

FCFE / PAT



Y/e March 2013 2014 2015 2016


Total Debt ‐ ‐ ‐ ‐



Net Fixed Assets 29,084 32,408 35,425 38,245

Goodwill

Investments 8,581 14,962 17,198 42,993





Other Assets 1,138 1,385 1,444 944

Total Assets 65,937 73,347 78,994 83,859



Net Revenue 14,152 13,786 13,304 14,000

EBITDA 1,976 2,288 2,609 2,580

% of revenue 14.0 16.6 19.6 18.4



Other Income 978 763 845 900


Total Tax 555 596 669 714

Profit after Tax 1,410 1,578 1,857 1,836

Adj. PAT 1,410 1,578 1,857 1,836


Insecticides (India)


March 20, 2017


March 20, 2017 51

Management Representative: Mr. Shrikant Satwe Head International Business

Trading data




Major shareholders

Promoters 68.75%

Foreign 4.68%



Stock Performance

(%) 1M 6M 12M

Absolute 0.0 18.1 78.2

Relative (3.1) 13.8 57.9

Price Performance (RIC: ISIL.BO, BB: INST IN)

0

100

200

300

400

500

600

700

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Insecticides India (IIL) is a generic player in the Agri input space with 348 registrations and a varied portfolio of 99 formulations and 18 Technicals. It has over the years developed generic products under the Tractor Brand name. 75% of its business comprises of branded sales where as 25% is B2B/Insti sales. IIL has grown its revenues at a steady pace in the past, however margins continue to hover in the 9‐11% range due to generic nature of business. Of late it has started focusing on Specialty product tie‐ups and is launching 3‐4 9(3) and 9(4) new

products every year. Though initially, it could hurt margins, in the long term it is expected to strengthen the business and leverage the IIL distribution. With bulk of the capex cycle behind (invested Rs2.5bn at Dahej over 5 years, operating leverage is expected to play out for IIL which is expected to reduce debt over the next 2‐3 years.

Top 20 Products contributes 2/3rd of branded sales: Navratna (Top 9 products)

& Super 11 (Next 11 products) accounts for ~52% and 13% of branded

formulation (B2C) business. Company has a proven track record of acquiring &

turning around off‐shelf brands into market leaders like acquisition of MONOCIL

brand from NOCIL and acquisition of 21 leading brands of Montari Industries

Ltd.

Green Label contribution in FY17 has aided margins and profitability: Green

Label – Same molecule as Nominee gold (Largest selling Rice Herbicide for PI

Industries) has received a good response and expected to gross ~Rs800m for

FY17E. Pricing is around 15% cheaper than PI Industries at Rs 5400/litre however

margins are above 15% aiding profitability

Brand Licensing and marketing arrangements yielding results: Brand licensing

and marketing arrangements with AMVAC, USA and Nissan Chemicals, Japan has

helped IIL scale up its specialty business. Further, it has exclusive distributor for

Pulsor – Rice Fungicide for Nissan in India.


Revenues (Rs m) 6,167 8,641 9,652 9,899

Growth (%) 18.2 40.1 11.7 2.6

EBITDA (Rs m) 693 818 1,110 920

PAT (Rs m) 353 399 548 396

EPS (Rs) 18.6 21.0 28.8 19.2

Growth (%) 7.0 13.1 37.3 (33.6)

Net DPS (Rs) 3.0 3.0 2.5 2.0


EBITDA margin (%) 11.2 9.5 11.5 9.3

RoE (%) 17.9 17.4 20.4 11.3

RoCE (%) 16.5 16.0 17.3 12.4

EV / sales (x) 1.4 1.1 1.0 1.3

EV / EBITDA (x) 12.7 11.3 8.9 14.0

PE (x) 28.5 25.2 18.4 27.7

P / BV (x) 3.2 2.7 2.3 2.7



52 March 20, 2017

Insecticides (India)


Y/e March 2013 2014 2015 2016

Net Revenue 6,167 8,641 9,652 9,899


Gross Profit 2,020 2,626 3,169 3,154


Other Expenses 1,078 1,515 1,708 1,826

EBITDA 693 818 1,110 920


Net Interest 174 269 332 259



Total Tax 111 87 90 108



Adj. PAT 353 399 548 396

Avg. Shares O/S (m) 13 13 13 20.7

EPS (Rs.) 18.6 21.0 28.8 19.2


Y/e March 2013 2014 2015 2016

C/F from Operations (13) 377 (55) 859


C/F from Financing 347 234 360 (637)

Inc. / Dec. in Cash (131) 43 (38) 35



FCFF (478) (191) (398) 672

FCFE


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) 18.2 40.1 11.7 2.6

EBITDA (%) 23.0 18.0 35.8 (17.1)

PAT (%) 7.0 13.1 37.3 (27.8)

EPS (%) 7.0 13.1 37.3 (33.6)

Profitability

EBITDA Margin (%) 11.2 9.5 11.5 9.3

PAT Margin (%) 5.7 4.6 5.7 4.0

RoCE (%) 16.5 16.0 17.3 12.4

RoE (%) 17.9 17.4 20.4 11.3

Balance Sheet

Net Debt : Equity 1.0 1.0 1.1 0.5


Valuation

PER (x) 28.5 25.2 18.4 27.7

P / B (x) 3.2 2.7 2.3 2.7

EV / EBITDA (x) 12.7 11.3 8.9 14.0

EV / Sales (x) 1.4 1.1 1.0 1.3

Earnings Quality

Eff. Tax Rate 0.2 0.2 0.1 0.2

Other Inc / PBT 0.4 0.9 1.0 1.5

Eff. Depr. Rate (%) 3.9 3.6 6.3 6.9

FCFE / PAT



Y/e March 2013 2014 2015 2016


Total Debt 2,113 2,580 3,217 2,056



Net Fixed Assets 1,852 2,243 2,474 2,497

Goodwill






Other Assets 281 412 916 1075

Total Assets 4,391 5,224 6,323 6,385



Net Revenue 1,781 3,049 4,675 1,591

EBITDA 81 367 478 161

% of revenue 4.6 12.1 10.2 10.1





Total Tax 9 72 114 21


Adj. PAT 5 181 287 54


Mahindra CIE Automotive


March 20, 2017


March 20, 2017 53

Management Representative: Mr. Pedro Echegaray CIE Representative in India Mr. Vikas Sinha Sr. VP Strategy

Trading data




Major shareholders

Promoters 69.91%

Foreign 5.10%



Stock Performance

(%) 1M 6M 12M

Absolute 1.5 8.9 5.3

Relative (1.6) 4.5 (15.0)

Price Perf. (RIC: MAHN.BO, BB: MACA IN)

0

50

100

150

200

250

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Mahindra CIE Automotive operates in various segments including Forging, Stamping, Gears, Casting, Composites and Magnetic products. Forging dominates its operations while Composites and Magnetic products have an insignificant contribution to consolidated revenues. Supported by dual parents, MCIE is present in the CV as well as the PV space. It has a global presence with its global promoters. The company is focused on the next round of growth through entry into new products & new geographies, domestic customer development and strategic acquisitions like its recent acquisition of Bill Forge.

Segmental revenue mix: Segment wise, the forgings business currently

contributes ~67% of consolidated revenues and is expected to continue to be

the dominant segment. Stampings segment accounts for ~13% while segments

like Gears and Castings form 10% and 7% of revenues respectively. Geography

wise, the company’s export revenues constitute ~70% of its total revenues.

Customer diversification: MCIE’s top two customers, contribute ~55% of its

revenues in the domestic market. With its recent acquisition of Bill Forge (BFL),

MCIE will be able to diversify its client portfolio as the former has a presence in

PV, two‐wheeler & exports markets. The acquisition helps MCIE to further tap

the aforesaid space and diversify its customer concentration along with higher

share of exports.

Growth Strategy: Mahindra CIE has seen a sharp turnaround with its forging

unit turning from H1FY14. Its revenue and EBITDA CAGR over FY13‐15 is ~59%

and ~227% respectively. The company has strategized its next phase of growth,

focusing on expansion & profitability. It is working at business expansion and

revenue growth via new acquisitions, entering new product categories,

customer development and optimising its utilisation. Profitability improvement

is expected through cost reduction measures and increase in exports.

Key financials (Y/e March) 2013 2014 2015 9MFY16

Revenues (Rs m) 22,164 25,908 55,699 38,613

Growth (%) (9.2) 16.9 115.0 (30.7)

EBITDA (Rs m) 414 1,088 4,417 3,810

PAT (Rs m) (1,139) (815) (782) 872

EPS (Rs) (12.4) (8.8) (2.4) 2.7

Growth (%) (322.6) 28.6 72.6 211.6

Net DPS (Rs) 0 0 0 0

Profitability & Valuation 2013 2014 2015 9MFY16

EBITDA margin (%) 2.1 4.6 8.4 10.0

RoE (%) (14.1) (11.7) (6.2) 4.5

RoCE (%) (4.4) (0.5) 0.9 4.8

EV / sales (x) 0.5 0.5 1.5 2.4

EV / EBITDA (x) 21.2 11.4 17.4 22.9

PE (x) ‐ ‐ ‐ 92.9

P / BV (x) 0.5 1.1 3.7 4.0



54 March 20, 2017

Mahindra CIE Automotive


Y/e March 2013 2014 2015 9MFY16

Net Revenue 22,164 25,908 55,699 38,613


Gross Profit 12,159 15,260 30,091 21,350

Employee Cost 6,236 7,294 11,867 7,835

Other Expenses 5,509 6,879 13,807 9,705

EBITDA 414 1,088 4,417 3,810


Net Interest 493 629 1,211 500


Profit before Tax (1,129) (614) 1,260 1,847

Total Tax (1) 118 (219) 196

Profit after Tax (1,128) (732) 1,479 1,651

Ex‐Od items / Min. Int. (12) (83) (2,261) (779)

Adj. PAT (1,139) (815) (782) 872

Avg. Shares O/S (m) 92 92 323 323

EPS (Rs.) (12.4) (8.8) (2.4) 2.7


Y/e March 2013 2014 2015 9MFY16



C/F from Financing 19 (116) (294) (490)

Inc. / Dec. in Cash 19 7 (155) (52)



FCFF 82 83 (166) 410

FCFE (411) (652) (1,111) 2


Y/e March 2013 2014 2015 9MFY16

Growth

Revenue (%) (9.2) 16.9 115.0 (30.7)

EBITDA (%) (78.0) 159.8 298.8 (17.8)

PAT (%) (322.7) 28.5 4.1 211.6

EPS (%) (322.6) 28.6 72.6 211.6

Profitability

EBITDA Margin (%) 2.1 4.6 8.4 10.0

PAT Margin (%) (5.0) (3.1) (1.4) 2.2

RoCE (%) (4.4) (0.5) 0.9 4.8

RoE (%) (14.1) (11.7) (6.2) 4.5

Balance Sheet

Net Debt : Equity 0.9 1.1 0.8 0.5

Net Wrkng Cap. (days) 55.7 40.4 4.8 (22.3)

Valuation

PER (x) 0.0 0.0 0.0 92.9

P / B (x) 0.5 1.1 3.7 4.0

EV / EBITDA (x) 21.2 11.4 17.4 22.9

EV / Sales (x) 0.5 0.5 1.5 2.4

Earnings Quality

Eff. Tax Rate 0.1 (16.9) 21.9 18.3

Other Inc / PBT (0.0) (0.2) 0.3 0.1

Eff. Depr. Rate (%) 30.8 33.3 58.8 38.0

FCFE / PAT 0.4 0.8 1.4 0.0



Y/e March 2013 2014 2015 9MFY16


Total Debt 6,836 7,341 15,491 10,776



Net Fixed Assets 12,494 12,961 32,994 34,639

Goodwill 0 0 0 0


Net Current Assets 2,868 2,115 734 (4,459)




Other Assets 62 94 2,147 2,352

Total Assets 15,446 15,191 35,953 32,591



Net Revenue 4,042 4,045 4,435 4,535

EBITDA 381 308 349 347

% of revenue 9.4 7.6 7.9 7.7





Total Tax 79 64 72 60


Adj. PAT 153 113 140 109


Navneet Education


March 20, 2017


March 20, 2017 55

Management Representative: Mr. Sunil Gala MD Mr. Deepak Kaku CFO Mr. Roomy Mistry Head IR

Trading data


52 Week Low (Rs) 81


Major shareholders

Promoters 61.80%

Foreign 4.45%



Stock Performance

(%) 1M 6M 12M

Absolute (0.2) 37.3 75.9

Relative (4.4) 33.7 55.7

Price Performance (RIC: NAVN.BO, BB: NELI IN)

Source: Bloomberg

020406080

100120140160

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Navneet Education enjoys a strong foothold in the publication industry with a market share of ~65‐70% in both Gujarat and Maharashtra. Navneet’s stint of more than five decades in the publication segment has not only enabled strong relationships with educational institutions, but has also created a strong brand recall and trust factor with teachers, parents and retailers. Traditional publishing business is growing @10‐12% CAGR with margins north of 33%. Buoyed by its success, Navneet ventured into Stationery business which, though is not as profitable as Publishing (9‐12% margins), but helps leverage distribution reach and branding of the entire portfolio. Off‐late, Navneet is targeting the digital opportunity by offering B2B animated versions of syllabus to schools and other B2C products like Cloud (TOPSCORER),pen drives and APP based product. Navneet has been a value stock over the years with a payout ratio of ~48%. However, considering RoE of 23% and consistent earnings over FY16‐FY18E period, Navneet is well‐positioned to deliver superior returns. Strong management bandwidth with proven track record, high visibility on operating cash‐flows, superior return ratios and strong balance sheet, makes Navneet a preferred ‘BUY’ in the Education space with a revised TP of Rs168.

Strong content portfolio helps steady cash generation in publishing: Navneet

enjoys near monopoly position in the supplementary books segment in Western

India and generates ~Rs1.9bn EBITDA/annum in the publishing segment. Regular

capex of Rs250‐300m and strong cash generation makes publishing segment a

cash cow for funding future growth avenues.

EBI to contribute 6% to growth for FY18E: Enclyclopaedia Britannica India (EBI)

acquisition will give Navneet a straight 6% growth boost in revenues for FY18

which is significant contribution considering the 11% CAGR growth experienced

by the company for FY11‐FY16 period. We like the deal as Navneet is almost

debt free currently and is expected to generate cash flows in excess of Rs1.5bn

for FY17


Revenues (Rs m) 9,498 11,317 13,314 14,632

Growth (%) (3.0) 19.1 17.6 9.9

EBITDA (Rs m) 2,056 2,652 2,993 3,274

PAT (Rs m) 1,243 1,576 1,796 1,967

EPS (Rs) 5.2 6.7 7.7 8.4

Growth (%) (4.7) 29.3 14.0 9.5

Net DPS (Rs) 2.2 1.7 3.1 3.4


EBITDA margin (%) 21.6 23.4 22.5 22.4

RoE (%) 22.1 25.9 26.4 25.3

RoCE (%) 16.5 20.4 20.8 21.3

EV / sales (x) 3.7 3.1 2.6 2.3

EV / EBITDA (x) 17.1 13.1 11.5 10.4

PE (x) 27.5 21.2 18.6 17.0

P / BV (x) 5.9 5.3 4.6 4.0



56 March 20, 2017

Navneet Education


Y/e March 2016 2017E 2018E 2019E

Net Revenue 9,498 11,317 13,314 14,632


Gross Profit 4,894 5,941 6,857 7,572

Employee Cost 1,006 1,105 1,271 1,461

Other Expenses 1,832 2,184 2,593 2,837

EBITDA 2,056 2,652 2,993 3,274



Other Income 169 140 124 130


Total Tax 666 838 925 1,014

Profit after Tax 1,034 1,576 1,796 1,967

Ex‐Od items / Min. Int. (202) (50) — —

Adj. PAT 1,243 1,576 1,796 1,967

Avg. Shares O/S (m) 238.2 233.5 233.5 233.5

EPS (Rs.) 5.2 6.7 7.7 8.4


Y/e March 2016 2017E 2018E 2019E


C/F from Investing (253) (1,030) (30) (355)

C/F from Financing (1,685) (326) (1,512) (1,112)

Inc. / Dec. in Cash 4 (2) (46) 251



FCFF 1,689 325 1,466 1,363

FCFE 1,950 1,574 821 1,035


Y/e March 2016 2017E 2018E 2019E

Growth

Revenue (%) (3.0) 19.1 17.6 9.9

EBITDA (%) (13.4) 29.0 12.8 9.4

PAT (%) (4.7) 26.8 14.0 9.5

EPS (%) (4.7) 29.3 14.0 9.5

Profitability

EBITDA Margin (%) 21.6 23.4 22.5 22.4

PAT Margin (%) 13.1 13.9 13.5 13.4

RoCE (%) 16.5 20.4 20.8 21.3

RoE (%) 22.1 25.9 26.4 25.3

Balance Sheet

Net Debt : Equity 0.2 0.3 0.1 0.1


Valuation

PER (x) 27.5 21.2 18.6 17.0

P / B (x) 5.9 5.3 4.6 4.0

EV / EBITDA (x) 17.1 13.1 11.5 10.4

EV / Sales (x) 3.7 3.1 2.6 2.3

Earnings Quality

Eff. Tax Rate 35.0 34.0 34.0 34.0

Other Inc / PBT 9.2 5.7 4.6 4.4

Eff. Depr. Rate (%) 7.3 5.9 6.5 6.6

FCFE / PAT 156.9 99.8 45.7 52.6



Y/e March 2016 2017E 2018E 2019E


Total Debt 1,035 1,800 1,200 1,000



Net Fixed Assets 1,763 2,615 2,513 2,496

Goodwill — — — —






Other Assets — — — —

Total Assets 6,881 8,176 8,511 9,339



Net Revenue 1,842 5,605 1,714 1,566

EBITDA 243 1,802 298 203

% of revenue 13.2 32.1 17.4 13.0


Net Interest 4 23 — 1


Profit before Tax 194 1,743 281 193

Total Tax 66 607 95 66

Profit after Tax 127 1,136 186 126

Adj. PAT 127 1,136 186 126


Y/e March 2016 2017E 2018E 2019E

Segment Revenues

Publishing 5,346 6,229 7,038 7,953

Stationery 4,077 4,680 5,264 5,650

EBIDTA

Publishing 1,715 2,083 2,323 2,545

Stationery 364 491 526 565


Nila Infrastructures


March 20, 2017


March 20, 2017 57

Management Representative: Mr. Deep Vadodaria COO Mr. Himanshu Bavishi Group President ‐ Finance

Trading data


52 Week Low (Rs) 10


Major shareholders

Promoters 62.05%

Foreign 0.00%



Stock Performance

(%) 1M 6M 12M

Absolute 3.7 20.8 33.6

Relative 0.6 16.5 13.3

Price Performance (RIC: NHI.BO, BB: NLHI IN)

0

5

10

15

20

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

NILA Infra Ltd, a Sambhaav group company is engaged in infrastructure and realty business with focus on affordable housing infra projects, while order diversity includes Civic Urban Infrastructure projects (Medical College, Office Complexes, BRTS Stations, Multilevel Parking, etc) & SRA projects. The Company has built more than 10m sq.ft. till date and has 13 ongoing projects (3.2m sq. ft.), delivered close to 2,300 flats (1.3m sq. ft. built‐up area) in the affordable housing segment. With strong order book of Rs3bn as at Dec 16 (FY16 – Rs2bn) of which 55% is affordable housing, the company is well placed to seize opportunities with a USP of timely and cost effective execution. The company operates in business segments of EPC, PPP, EPC+PPP and white label construction.

Leveraging low cost land bank in Realty Business: Nila Infra had acquired its

land banks in the 1996‐2005 phase. The company leverages its low cost land bank to develop its own real estate projects through JV’s with renowned real estate developers. It has successfully built 4,600 homes over last 25 years. The

company has a land bank of nearly 50 acres available as at Dec 2016 for future projects. Longer term plan is to monetise the same through developments.

Affordable Housing (Infrastructure): The company has a total of 5,818 units

(2.2m sq. ft.) of affordable housing under development in Gujarat & Rajasthan. It has received orders from cash rich entities like AMC (0.8m sq. ft. – 2,700 units)

and VUDA (0.2m sq. ft. – 452 units). Strong track record in timely execution helped win contract from the Govt. Of Rajasthan (1.3m sq. ft. – 3,116 units) in Jodhpur, Udaipur & Bhilwara

Strong order inflow status: With increased Govt. Initiatives & policies triggering immense opportunity in affordable housing segment, with strong land bank and presence across wide spectrum of projects, Nila Infra is set for strong growth going forward. The debt stood at Rs1.4bn at FY16 end. The company recorded

standalone revenues of Rs1.5bn (+32% YoY) with EBITDA and PAT margins of 16.9% and 10.1% respectively for 9MFY17.


Revenues (Rs m) 930 972 1,244 1,831

Growth (%) 7.5 4.5 28.0 47.2

EBITDA (Rs m) 219 235 226 269

PAT (Rs m) 128 118 120 140

EPS (Rs) 0.4 0.4 0.3 0.4

Growth (%) 3.1 0.0 (19.2) 17.1

Net DPS (Rs) 0.10 0.10 0.10 0.11


EBITDA margin (%) 23.5 24.2 18.2 14.7

RoE (%) 13.2 10.8 9.1 8.9

RoCE (%) 16.0 12.9 11.3 11.9

EV / sales (x) 6.1 6.0 5.9 4.2

EV / EBITDA (x) 26.1 24.7 32.6 28.5

PE (x) 39.1 42.5 52.6 44.9

P / BV (x) 4.9 4.6 4.1 3.9



58 March 20, 2017

Nila Infrastructures


Y/e March 2013 2014 2015 2016

Net Revenue 930 972 1,244 1,831


Gross Profit 621 631 912 1,296



EBITDA 219 235 226 269





Total Tax 65 63 66 88



Adj. PAT 128 118 120 140

Avg. Shares O/S (m) 295 295 370 370

EPS (Rs.) 0.4 0.4 0.3 0.4


Y/e March 2013 2014 2015 2016

C/F from Operations (204) (24) (761) (108)

C/F from Investing 1 9 (127) 78

C/F from Financing 198 33 884 16

Inc. / Dec. in Cash (5) 17 (4) (14)



FCFF (242) (84) (819) (169)

FCFE (2) 153 (333) 25


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) 7.5 4.5 28.0 47.2

EBITDA (%) 7.0 7.3 (3.9) 18.9

PAT (%) 0.0 (7.8) 1.3 17.1

EPS (%) 3.1 0.0 (19.2) 17.1

Profitability

EBITDA Margin (%) 23.5 24.2 18.2 14.7

PAT Margin (%) 13.8 12.2 9.6 7.7

RoCE (%) 16.0 12.9 11.3 11.9

RoE (%) 13.2 10.8 9.1 8.9

Balance Sheet

Net Debt : Equity 0.7 0.7 0.7 0.8


Valuation

PER (x) 39.1 42.5 52.6 44.9

P / B (x) 4.9 4.6 4.1 3.9

EV / EBITDA (x) 26.1 24.7 32.6 28.5

EV / Sales (x) 6.1 6.0 5.9 4.2

Earnings Quality

Eff. Tax Rate 33.5 34.9 35.7 38.7

Other Inc / PBT 23.5 19.3 39.7 52.3

Eff. Depr. Rate (%) 2.3 2.6 3.5 3.6

FCFE / PAT (0.0) 1.3 (2.8) 0.2



Y/e March 2013 2014 2015 2016


Total Debt 709 832 1,130 1,403




Goodwill ‐ 0 0 0







Total Assets 1,734 1,946 2,796 3,122



Net Revenue 693 468 526 508

EBITDA 75 70 88 96

% of revenue 10.8 15.0 16.7 19.0





Total Tax 28 21 28 32


Adj. PAT 58 40 55 56


Shakti Pumps (India)


March 20, 2017


March 20, 2017 59

Management Representative: Mr. Akhilesh Maru CFO

Trading data




Major shareholders

Promoters 45.63%

Foreign 0.00%



Stock Performance

(%) 1M 6M 12M

Absolute 8.0 34.9 31.3

Relative 5.0 30.6 11.0

Price Performance (RIC: SHPU.BO, BB: SKPI IN)

0

50

100

150

200

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Shakti Pumps is one of the leading manufacturers of energy‐efficient submersible pumps and motors in India, catering to various segments including agricultural, industrial, domestic as well as horticultural. Along with submersible pumps & motors, its product portfolio consists of vertical multistage centrifugal pumps, pressure‐booster pumps, open‐well pumps, end‐suction pumps and solar pumps. With new products for commercial & industrial application and various new geographies entered, Shakti Pumps is poised for strong growth in the coming years.

Widening geographical presence: Shakti Pumps has a strong footing in the Asian markets. However, exports contribution to revenues has come down from ~54% in FY15 to ~45% in FY16 owing to geopolitical and economic instability in various Asian markets. With its recent foray into North American and African markets, the company can compensate for the decline in sales in its main Asian markets. Further, increasing focus in these new geographies will enhance overall share of exports, boosting revenue as well as margins.

New products in the Industrial space: Shakti pumps traditionally catered to the agricultural sector. Over the past three years, the company has introduced other products like pressure‐booster, sewage and slurry pumps, which are meant for industrial applications. For FY15‐16, the industrial segment contributed just ~5% of domestic revenues. With these new launches, the industrial segment is expected to constitute a significant portion of total domestic revenues in the long run.

Margins under pressure: Shakti pumps had maintained healthy double‐digit return ratios. However, its ROCE has declined substantially from ~19% in FY15 to ~6% in FY16. Its Ebitda margin has also shrunk from ~19% in FY15 to ~11% in FY16 owing to the disruption in its key export markets. With expected growth in export as well as domestic markets, margin profile should also see an improvement


Revenues (Rs m) 2,088 2,921 2,966 2,642

Growth (%) 9.0 39.9 1.6 (10.9)

EBITDA (Rs m) 301 433 472 201

PAT (Rs m) 168 250 263 11

EPS (Rs) 11.0 16.4 15.2 0.6

Growth (%) 12.0 48.5 (7.3) (95.8)

Net DPS (Rs) 1.0 2.0 2.0 1.5


EBITDA margin (%) 17.3 18.0 19.4 10.6

RoE (%) 18.5 23.1 18.2 0.6

RoCE (%) 17.4 22.0 18.7 5.9

EV / sales (x) 0.7 0.8 1.5 1.4

EV / EBITDA (x) 4.2 4.2 7.7 12.3

PE (x) 3.9 4.7 13.4 229.9

P / BV (x) 0.6 1.0 2.0 1.5



60 March 20, 2017

Shakti Pumps (India)


Y/e March 2013 2014 2015 2016

Net Revenue 2,088 2,921 2,966 2,642

Raw Material Expenses 981 1,256 1,298 1,304

Gross Profit 1,107 1,665 1,668 1,338



EBITDA 301 433 472 201


Net Interest 122 126 132 143



Total Tax 27 92 93 15



Adj. PAT 168 250 263 11

Avg. Shares O/S (m) 15 15 17 17

EPS (Rs.) 11.0 16.4 15.2 0.6


Y/e March 2013 2014 2015 2016

C/F from Operations 287 180 (40) 330


C/F from Financing (21) 123 285 (143)

Inc. / Dec. in Cash (23) 15 (11) 8



FCFF (76) 23 (391) 115

FCFE (180) (69) (489) 54


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) 9.0 39.9 1.6 (10.9)

EBITDA (%) 16.3 45.6 9.5 (50.7)

PAT (%) 21.5 48.5 5.2 (95.9)

EPS (%) 12.0 48.5 (7.3) (95.8)

Profitability

EBITDA Margin (%) 17.3 18.0 19.4 10.6

PAT Margin (%) 7.9 8.4 8.7 0.4

RoCE (%) 17.4 22.0 18.7 5.9

RoE (%) 18.5 23.1 18.2 0.6

Balance Sheet

Net Debt : Equity 0.8 0.8 0.5 0.5


Valuation

PER (x) 3.9 4.7 13.4 229.9

P / B (x) 0.6 1.0 2.0 1.5

EV / EBITDA (x) 4.2 4.2 7.7 12.3

EV / Sales (x) 0.7 0.8 1.5 1.4

Earnings Quality

Eff. Tax Rate 14.0 26.9 26.2 57.7

Other Inc / PBT 0.3 0.3 0.3 3.5

Eff. Depr. Rate (%) 1.4 1.9 2.4 2.8

FCFE / PAT (1.1) (0.3) (1.9) 5.1



Y/e March 2013 2014 2015 2016


Total Debt 917 1,130 1,021 1,040



Net Fixed Assets 803 911 1,106 1,183

Goodwill 0 0 0 0

Investments 0 0 0 0





Other Assets 173 359 301 379

Total Assets 2,050 2,518 3,156 3,129



Net Revenue 748 709 754 1,002

EBITDA 65 84 117 162

% of revenue 8.7 11.9 15.6 16.2




Profit before Tax (1) 21 48 81

Total Tax (3) 7 12 28


Adj. PAT 2 14 36 54


Sutlej Textiles & Industries


March 20, 2017


March 20, 2017 61

Management Representative: Mr. Bipeen Valame Whole Time Director & CFO

Trading data




Major shareholders

Promoters 63.90%

Foreign 0.01%



Stock Performance

(%) 1M 6M 12M

Absolute (3.3) 16.4 79.6

Relative (6.4) 12.1 59.2

Price Performance (RIC: SUTI.BO, BB: SUTJ IN)

0

200

400

600

800

1,000

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Sutlej Textiles & Industries Ltd, part of the KK Birla group, is engaged in the manufacturing of Cotton, Cotton blended dyed, synthetic and Melange yarn with a capacity of 3,80,714 spindles. Its clientele includes marquee names like Page Industries, Siyaram, Donear, Shivalik Print, Arrow, Grasim etc. Exports contribute almost 25% of revenues with products sold in 55 countries spread across Europe, North America and South‐East Asia. Demonetization has hit Q3FY17 as trade and retail consumers who preferred buying in cash had got severely affected. Also, there was a sharp increase in cotton and man‐made fibre prices globally. However, FY18 should provide fillip to growth with both cotton melange in Rajasthan & Home Textile facility in Gujarat fully operational.

Exports of Cotton melange accounts for 25% of revenue: Sutlej started

production of the value added cotton melange segment from November 2014, which now contributes almost 25% of its revenues. Premium pricing in melange,

higher margins and order backlog of 40‐45 days have compensated for the sluggish grey yarn demand.

Home‐Textile capacity to increase by 50% to 9.6m metres per annum by FY17:

Sutlej is trying to leverage the yarn to home textile value chain and is almost doubling capacity in this segment to 9.6m mtrs /annum. Product range includes

furnishing fabrics, curtain fabrics, upholstery fabrics, Bedcovers and Bed spreads. Management has highlighted that this segment can contribute in excess of Rs1.5bn in FY18 from Rs0.94bn currently. This segment has shown a

turnaround at PBT levels in FY16 and is expected to generate better margins as volumes pick up. Current, capacity utilization stands at 80% and contributes 5% to revenues.

Strong return ratios and inexpensive valuations: Sutlej has been consistently earning capital return ratios in excess of 20% ROE and trades at inexpensive

valuations of 7.6xFY18E PER.


Revenues (Rs m) 16,802 18,806 18,782 22,713

Growth (%) 9.3 11.9 (0.1) 20.9

EBITDA (Rs m) 1,966 2,666 2,321 2,798

PAT (Rs m) 770 1,314 1,154 1,434

EPS (Rs) 47.0 80.2 70.5 87.5

Growth (%) 142.4 70.7 (12.1) 24.2

Net DPS (Rs) 5.0 8.0 10.0 13.0


EBITDA margin (%) 11.7 14.2 12.4 12.3

RoE (%) 24.7 32.5 22.6 23.2

RoCE (%) 14.3 20.5 15.8 16.1

EV / sales (x) 1.2 1.0 1.0 0.9

EV / EBITDA (x) 10.1 7.3 8.3 7.1

PE (x) 17.3 10.1 11.5 9.3

P / BV (x) 2.6 2.9 2.4 2.0



62 March 20, 2017

Sutlej Textiles & Industries


Y/e March 2013 2014 2015 2016

Net Revenue 16,802 18,806 18,782 22,713


Gross Profit 6,146 7,319 7,357 9,418

Employee Cost 1,347 1,580 1,750 2,366

Other Expenses 2,833 3,073 3,286 4,253

EBITDA 1,966 2,666 2,321 2,798


Net Interest 653 581 530 465

Other Income 377 390 397 310

Profit before Tax 928 1,717 1,482 1,760

Total Tax 158 403 328 327

Profit after Tax 770 1,314 1,154 1,434

Ex‐Od items / Min. Int. (61) (6) (7) (39)

Adj. PAT 830 1,320 1,161 1,472

Avg. Shares O/S (m) 10.9 16.4 16.4 16.4

EPS (Rs.) 47.0 80.2 70.5 87.5


Y/e March 2013 2014 2015 2016


C/F from Investing (17) (751) (1,720) (2,234)

C/F from Financing (1,396) (849) (1,036) 805

Inc. / Dec. in Cash 9 (9) (9) 37



FCFF 1,406 840 1,027 (768)

FCFE


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) 9.3 11.9 (0.1) 20.9

EBITDA (%) 34.0 35.6 (12.9) 20.6

PAT (%) 142.4 70.7 (12.1) 24.2

EPS (%) 142.4 70.7 (12.1) 24.2

Profitability

EBITDA Margin (%) 11.7 14.2 12.4 12.3

PAT Margin (%) 4.6 7.0 6.1 6.3

RoCE (%) 14.3 20.5 15.8 16.1

RoE (%) 24.7 32.5 22.6 23.2

Balance Sheet

Net Debt : Equity 0.5 0.5 0.4 0.5


Valuation

PER (x) 17.3 10.1 11.5 9.3

P / B (x) 2.6 2.9 2.4 2.0

EV / EBITDA (x) 10.1 7.3 8.3 7.1

EV / Sales (x) 1.2 1.0 1.0 0.9

Earnings Quality

Eff. Tax Rate 20.7 20.9 21.3 20.4

Other Inc / PBT 40.7 22.7 26.8 17.6

Eff. Depr. Rate (%) 6.1 6.4 5.2 5.1

FCFE / PAT



Y/e March 2013 2014 2015 2016


Total Debt 6,516 6,303 5,976 6,734



Net Fixed Assets 5,452 5,632 6,872 8,843

Goodwill

Investments 895 952 911 1,262





Other Assets 352 446 617 447

Total Assets 10,517 11,442 12,127 14,251



Net Revenue 5,496 5,526 5,594 5,399

EBITDA 685 776 842 645

% of revenue 12.5 14.0 15.0 12.0





Total Tax ‐18 69 101 102


Adj. PAT 527 451 519 277


Vipul


March 20, 2017


March 20, 2017 63

Management Representative: Mr. Punit Beriwala Promoter & MD Mr. Ajay Agrawal CFO

Trading data


52 Week Low (Rs) 40


Major shareholders

Promoters 63.38%

Foreign 0.00%



Stock Performance

(%) 1M 6M 12M

Absolute (2.7) (17.1) 65.5

Relative (5.8) (21.4) 45.1

Price Performance (RIC: VIPL.BO, BB: VPUL IN)

0

20

40

60

80

100

Mar‐16

May‐16

Jul‐16

Sep‐16

Nov‐16

Jan‐17

Mar‐17

(Rs)

Source: Bloomberg

Vipul Limited is engaged in real estate business developing townships, high‐end luxury apartments, villas and retail & commercial towers in NCR, Punjab and Bhubaneswar. The Company has delivered up to 10m sq.ft. till date and has 4m sq. ft. in pipeline. With significant presence in Northern India and a strong brand recognition in Gurgaon, the company has an USP of timely execution and continuous churn of land bank. The company has a 230 acres potential land bank spread across areas including Gurgaon, Chandigarh, Ludhiana and Bhubhaneshwar, with more than 75% in Gurgaon. With 6.6m sq. ft. of projects to be delivered within next 3 years and completion of Aarohan project by FY20, the company has a good pipeline of deliverables for next 5 years

Aarohan, a game changer: The company’s high‐end luxurious project Aarohan

has commenced construction and management aims to deliver the project by

FY2020. The project is spread across 3.2m sq. ft. All land related payments are

cleared with zero encumbrances, and only construction and allied costs remain

to be spent incrementally. More than 32% of Phase 1 area is sold (0.24m sq. ft. –

124 out of 382 flats). The project received environmental clearance in Sept

2016, and commenced construction in Q3FY17

To kick‐start growth from FY18: With the sluggish demand in the last few years

behind them and with increased regulatory norms for real estate sector getting

implemented, FY18 could see an increase in demand for the industry. Vipul

Realty has realised revenues of Rs1.6bn and EBITDA and PAT margins 12.1% and

1.4% respectively in 9MFY17. The total debt for the company as at H1FY17 was

Rs3.6bn


Revenues (Rs m) 4,133 2,615 2,340 1,849

Growth (%) (3.1) (36.7) (10.5) (21.0)

EBITDA (Rs m) 377 88 104 133

PAT (Rs m) 130 (79) (112) (99)

EPS (Rs) 0.8 (0.7) (0.9) (0.8)

Growth (%) (50.3) NA NA NA

Net DPS (Rs) 0.15 0.05 0.0 0.0


EBITDA margin (%) 9.0 (76.7) 18.7 27.2

RoE (%) 3.3 (2.0) (2.9) (2.6)

RoCE (%) 7.1 2.5 2.0 3.2

EV / sales (x) 2.1 3.3 4.4 5.8

EV / EBITDA (x) 22.7 97.3 98.9 80.9

PE (x) 86.8 (103.4) (75.0) (83.1)

P / BV (x) 2.1 2.1 2.2 2.2



64 March 20, 2017

Vipul


Y/e March 2013 2014 2015 2016

Net Revenue 4,133 2,615 2,340 1,849

Raw Material Expenses 2,484 1,093 827 235

Gross Profit 1,649 1,521 1,514 1,614


Other Expenses 1,071 1,230 1,195 1,288

EBITDA 377 88 104 133


Net Interest 181 195 257 334


Profit before Tax 206 (58) (133) (106)

Total Tax 76 21 (21) (7)

Profit after Tax 130 (79) (112) (99)

Ex‐Od items / Min. Int. (36) 0 3 0

Adj. PAT 95 (79) (109) (99)

Avg. Shares O/S (m) 120 120 120 120

EPS (Rs.) 0.8 (0.7) (0.9) (0.8)


Y/e March 2013 2014 2015 2016

C/F from Operations 319 295 (1,094) (460)


C/F from Financing (298) (221) 1,309 463

Inc. / Dec. in Cash (79) 7 15 (180)

Opening Cash 378 299 306 321

Closing Cash 299 306 321 141

FCFF 61 17 (1,441) (954)

FCFE 389 186 (180) (33)


Y/e March 2013 2014 2015 2016

Growth

Revenue (%) (3.1) (36.7) (10.5) (21.0)

EBITDA (%) 9.0 (76.7) 18.7 27.2

PAT (%) 0.0 (183.9) 38.0 (9.8)

EPS (%) (50.3) (183.9) 38.0 (9.8)

Profitability

EBITDA Margin (%) 9.1 3.4 4.5 7.2

PAT Margin (%) 3.1 (3.0) (4.8) (5.4)

RoCE (%) 7.1 2.5 2.0 3.2

RoE (%) 3.3 (2.0) (2.9) (2.6)

Balance Sheet

Net Debt : Equity 0.1 0.1 0.6 0.7


Valuation

PER (x) 86.8 (103.4) (75.0) (83.1)

P / B (x) 2.1 2.1 2.2 2.2

EV / EBITDA (x) 22.7 97.3 98.9 80.9

EV / Sales (x) 2.1 3.3 4.4 5.8

Earnings Quality

Eff. Tax Rate 37.0 (35.8) 15.7 7.0

Other Inc / PBT 11.7 (103.8) (24.3) (107.0)

Eff. Depr. Rate (%) 3.9 3.2 3.3 2.2

FCFE / PAT 4.1 (2.3) 1.6 0.3



Y/e March 2013 2014 2015 2016


Total Debt 896 887 2,535 2,870




Goodwill 161 161 161 161






Other Assets 1,525 1,503 1,446 1,357

Total Assets 6,070 6,508 7,894 8,115



Net Revenue 306 404 803 483

EBITDA (40) 53 86 66

% of revenue NA 13.2 10.7 13.6





Total Tax (3) 1 13 7


Adj. PAT 5 1 17 6



March 20, 2017 65

Notes

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66 March 20, 2017

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March 20, 2017 67

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68 March 20, 2017

_____________________________________________________________________________________________________

Prabhudas Lilladher Pvt. Ltd.

3rd Floor, Sadhana House, 570, P. B. Marg, Worli, Mumbai‐400 018, India

Tel: (91 22) 6632 2222 Fax: (91 22) 6632 2209

Rating Distribution of Research Coverage PL’s Recommendation Nomenclature

32.2%

51.7%

16.1%

0.0%0%

10%

20%

30%

40%

50%

60%

BUY Accumulate Reduce Sell

% of Total Coverage

BUY : Over 15% Outperformance to Sensex over 12‐months

Accumulate : Outperformance to Sensex over 12‐months

Reduce : Underperformance to Sensex over 12‐months

Sell : Over 15% underperformance to Sensex over 12‐months

Trading Buy : Over 10% absolute upside in 1‐month

Trading Sell : Over 10% absolute decline in 1‐month

Not Rated (NR) : No specific call on the stock

Under Review (UR) : Rating likely to change shortly

DISCLAIMER/DISCLOSURES

ANALYST CERTIFICATION

We/I, Mr. R Sreesankar (B.Sc), Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.

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This document has been prepared by the Research Division of PL and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of PL. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security.

The information contained in this report has been obtained from sources that are considered to be reliable. However, PL has not independently verified the accuracy or completeness of the same. Neither PL nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein.

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Our sales people, traders, and other professionals or affiliates may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make investment decisions that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all o the foregoing, among other things, may give rise to real or potential conflicts of interest.

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