IPO Review

January 20, 2017

BSE Ltd

Rating matrix

Rating

Price band | 805-806

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Issue Details
Issue Opens
Issue Closes
Issue Size (| Crore)
Price Band (|)
No of Shares on Offer (crore)
QIB (%)
Non-Institutional (%)
Retail (%)
Minimum lot size (No. of shares)

23-Jan-17
25-Jan-17
1241.9-1243.4
805-806
1.5
50
15
35
18

Objects of the Issue

To achieve benefits of listing equity shares on NSE and for sale of
equity shares by the selling shareholders. In addition, listing of the
equity shares will enhance its visibility and brand image and provide
liquidity to its existing shareholders.

Shareholding Pattern

Pre-Issue Post-Issue

Promoter & promoter group

Public

0.0%
100.0%

0.0%
100.0%

Financial Summary
| Crore
FY12
Revenue
537.7
EBITDA
318.9
Operating income
324.4
Adjusted Net Profit 172.4

FY13
509.6
267.5
280.1
118.8

FY14
485.1
242.7
254.7
135.2

FY15
583.7
264.2
245.7
129.5

FY16
616.2
258.4
238.1
122.5

BSE Ltd is the world's largest exchange by number of listed companies

(5963 companies). It is India's largest & world's tenth largest exchange by
market capitalisation, with $1.7 trillion in total market capitalisation of
listed companies. BSEs main function is to regulate listed issuers &
provide a market for listing, trading in various securities as may be
allowed by Sebi from time to time. As on June 30, 2016, BSE had 1440
unique members across all segments. In FY16, average of ~284.92
million (mn) orders & ~1.55 mn trades in equity shares/trading day were
accepted by BSE, making it the worlds twelfth most active exchange.
Revenue generation is undertaken from four streams viz. securities
services (39% of revenue in FY16), services to corporate (26%), data
dissemination fees (4%) and income from investments (31%). In FY12-16,
BSE clocked revenue growth at 3.3% CAGR in FY12-16 at | 658.3 crore,
while PAT was at | 159.2 crore in FY16.

Key business aspects

Strong brand recognition
BSE is Asias first and one of the most recognisable brand names in India,
which enables it to attract companies to its listing platforms and retail
investors along with other market participants. As of October 2016, BSE
was the world's largest exchange by number of listed companies and
tenth largest exchange by market capitalisation. According to CARE
Research, BSE ranks third globally in terms of currency options and
futures contracts traded in 2015 with 43 crore currency derivatives traded.

Diversified revenue source; execution of new ventures prerequisite

Kajal Gandhi

BSE derives revenue from variours streams including market turnover

related as well as unrelated activities, though revenue from trading
activities form a substantial proportion (~64.8% in FY16). Revenue
growth has remained on a slower track, attributable to stagnancy in
market share in equity trading at ~13-14%. Planned listing of CDSL and
divestment of ~24% stake held by BSE may dent topline for a one-time
inflow. However, focus on introduction of newer products including BSE
StAR (mutual fund investment platform), BSE SME and launch of
international exchange at GIFT City along with an international clearing
corporation are steps in right direction. On the whole, right execution and
profitable growth of these ventures remains prerequisite for an
improvement in overall business performance.

kajal.gandhi@icicisecurities.com

Strategic alliance and product innovation to strengthen position

Vishal Narnolia

BSE intends to strengthen position as preferred exchange in India &

expand its cross-border reach by entering into strategic alliances.
Introduction of new products remains focus areas; primarily in currency,
interest rate derivative segment. Launch of international exchange in GIFT
City will enlarge BSEs scheme of revenue generation avenues.

Valuation Summary (at | 806; upper price band)

(x)
P/E
P/BV

FY13
35.2
1.8

FY14
31.0
1.8

FY15
33.3
1.7

FY16
Pre
35.2
1.6

Post
35.2
1.6

Research Analyst

vishal.narnolia@icicisecurities.com
Vasant Lohiya
vasant.lohiya@icicisecurities.com

Concerns

Inability to retain key personnel may impair ability to achieve goals

Volatility in trading volumes exposes to profitability risk
LEIPS discontinuance may impact market share in equity derivative
Increasing competition entails business risk

Priced at ~35x FY16 PE; SUBSCRIBE from long term investment horizon
At the IPO price band of | 805-806, the stock is available at a multiple of
35.2x FY16 P/E at the upper end of the price band. Post issue market
capitalisation is at ~| 4312 crore.

ICICI Securities Ltd | Retail Equity Research

Company Background
BSE Ltd is the world's largest exchange by number of listed companies
(5963 companies) as of June 2016. In addition, it is India's largest and
world's tenth largest exchange by market capitalisation, with $1.7 trillion
in total market capitalisation of listed companies. The main function of
BSE is to regulate listed issuers and provide a market for listing and
trading in various types of securities as may be allowed by Sebi from time
to time. BSE had 1440 unique members across all segments as on June
30, 2016. On the volume front, in FY16, an average of ~284.92 mn orders
and ~1.55 mn trades in equity shares per trading day are accepted by
BSE, making it the worlds twelfth most active exchange.
BSE, was originally established in 1875 as the Native Share and Stock
Brokers' Association, which was an association of persons that engaged
in trading, clearing and settlement functions. The objective of formation
of association was to protect the character, status and interest of native
share and stock brokers and provide a hall or building for the use of the
members of the association. On August 31, 1957, the exchange became
the first stock exchange to be recognised under the Securities Contract
Regulation Act, 1956. Later, in August 2005, the exchange was
incorporated as a company limited by shares, pursuant to a mandatory
demutualisation scheme for the purpose of assisting, regulating or
controlling the business of buying, selling or dealing in securities as a
recognised stock exchange. Former members of the bourse became
shareholders in the exchange with addition of other shareholders later.
Exhibit 1: Major events in history of exchange
1875 Brokers formed an association known as the Native Share and Stock Brokers' Association
1887 The Native Share and Stock Brokers' Association was formally constituted
1957 The Exchange was granted permanent recognition under SCRA
1995 The Exchange started its Bombay Online Trading System (BOLT), a screen based trading system
2000 SEBI approval to commence derivative trading and settlement in SEBI approved derivative contracts
2001 Launch of BSE TECK Index
Incorporation of the Exchange as 'Bombay Stock Exchange Limited', pursuant to the
2005 Demutualisation Scheme
2009 The Exchange launched BSE StAR MF Mutual Fund trading platform
2011 The name of the Exchange was changed to its present name - "BSE Limited"
2013 Launch of Currency Derivatives segment
2014 Launch of Interest Rate Futures
2015 The Exchange entered into a memorandum of understanding to develop GIFT City

Source: RHP, ICICIdirect.com Research

On the business front, BSE operates in three primary lines of business

including listing business, market business and data business. The listing
business consists of the primary market, which relates to the issuance of
new securities. The market business provides a platform for purchase and
sale of previously issued securities. Data business comprises sale and
licensing of information products. Revenue generation is undertaken from
four streams namely securities services (39% of revenue in FY16),
services to corporate (26%), data dissemination fees (4%) and income
from investments and deposits (31%). In FY12-16, BSE clocked revenue
growth at 3.3% CAGR in FY12-16 at | 658.3 crore while PAT was at
| 159.2 crore in FY16.

ICICI Securities Ltd | Retail Equity Research

Page 2

Exhibit 2: Revenue break-up (FY16)

Other Income
6%
Securities Services
38%

Income From
Investments
29%

Data Dissemination
Fees
3%

Services to
Corporates
24%

Source: RHP, ICICIdirect.com Research

Financial performance
BSE has clocked revenue growth (excluding other income) at 3.5% CAGR
in FY12-16 to | 616 crore. Net profit, after share of minority and share of
loss of associate, was at | 122.5 crore as on FY16. Consequently, PAT
margin (calculated) remained at ~19.9% in FY16. RoE and RoCE as on
FY16 were in single digit at 5% and 8.2%, respectively.
Exhibit 3: Topline growth at 3.5% CAGR in FY12-16
700
600

510

485

500

20

400

(%)

| crore

40

616

584

300
0

200
100
0

-20
FY13

FY14

FY15

Revenue

FY16

Rev growth (%)

Source: RHP, ICICIdirect.com Research

Exhibit 4: Trends in profitability

200

172.4

150

118.8

135.2

129.5

122.5

100

(%)

(| crore)

Exhibit 5: Margin trends

50
0
FY12

FY13

FY14

FY15

PAT

Source: RHP, ICICIdirect.com, Research

ICICI Securities Ltd | Retail Equity Research

FY16

70
60
50
40
30
20
10
0

59.3

52.5

50.0

32.1

27.9

23.3

FY12

FY13

FY14

EBITDA margin (%)

45.3

41.9

22.2

19.9

FY15

FY16

PAT margin (%)

Source: RHP, ICICIdirect.com, Research

Page 3

Exhibit 6: Net worth

Exhibit 7: Return ratios

2600
| crore

2500
2400
2300

2625

8
6

2376
2290
3.1

10

3.8
2.1

2200

2
0

2100
FY13

FY14
Networth

FY15

FY16

Growth (%)

Source: RHP, ICICIdirect.com, Research

ICICI Securities Ltd | Retail Equity Research

(%)

2572
8.2

(%)

2700

14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0

12.2
10.2

9.7

8.7

7.9
5.8

5.3

FY12

FY13
RoE (%)

FY14

5.4

FY15

8.2
5.0

FY16

RoCE (%)

Source: RHP, ICICIdirect.com, Research

Page 4

Exchange sector in India

India has a long history of stock trading, dating back to around 200 years.
Initially, the East India Company was the dominant institution and
transaction in its loan securities used to be undertaken. Gradually, the list
of trading securities broadened with an increase in the number of
participating brokers. Subsequently, a formal stock exchange - "The
Native Share & Stock Brokers Association" (later became BSE Ltd) was
established in 1875. Later, National Stock Exchange (NSE) was founded in
1992 and started trading in 1994. BSE and NSE are the two dominant
stock exchanges in India.
With a rise in trading activities and increasing share prices of listed
companies, there has been a steady growth in market capitalisation of
both stock exchanges. In FY12-16, the number of shares traded on both
exchanges combined grew 30%. This improvement in growth of Indian
exchange has been brought about by steady growth of Indian economy,
growing awareness regarding stock market, increased participation by
foreign institutional players as well as domestic retail investors and
increased penetration of share market trading services across India.
Exhibit 8: Market capitalisation of BSE and NSE
120

101 99

(| Lac crore)

100
80

62

61

64

74
62

95

93

73

60
40
20
0
FY12

FY13

FY14
BSE

FY15

FY16

NSE

Source: RHP, ICICIdirect.com Research

Despite steady growth in the previous decade, Indias market

capitalisation to GDP ratio continues to remain lower compared to world
average of 98.7% and average of BRICS countries (which comprise Brazil,
Russia, India, China and South Africa) at 88.2%. This indicates that there
is room for domestic market capitalisation to increase further. With India
being one of the fastest growing economies globally with favourable
population demographic, there is room for growth in the scale of the
exchange business. In addition, introduction of innovative derivative
products like weather derivatives, energy derivatives and credit
derivatives (that are currently traded in major exchanges worldwide) offer
an opportunity to enhance the scope of business thereby translating to
better performance. Government initiatives, including permission
provided to Employee Provident Fund Organisation (EPFO) to begin
investing in equity markets is expected to further help equity markets to
gain traction in terms of customer base and reduce dependency on FIIs.

ICICI Securities Ltd | Retail Equity Research

Page 5

Exhibit 9: Equity savings as percentage of financial savings in India & other countries (2015)
45
40
35

(%)

30
25
42

20
15

29

10
5

14

15

China

Brazil

20

India

Indonesia

Western
Europe

US

Source: RHP, ICICIdirect.com Research

Exhibit 10: Market capitalisation as percentage of GDP in 2015

250
235.3

200
(%)

150
139.7

100

102.8

South Africa

US

China

88.6

Canada

India

86.2

Australia

75.4

France

65.7

73.1

South Asia

Russia

Germany

29.7

Brazil

51.1
27.6

71.3

Spain

50

Source: RHP, ICICIdirect.com Research

In terms of revenue mix, global exchanges derive their revenue from

several sources like transaction fees, listing, clearing and depository
services. However, for Indian exchanges, both BSE and NSE, securities
services and services to corporate (listing fees) form a significant
proportion of overall revenues. On the other hand, proportion of
information services in total revenue was in single digits at 4-5%, which is
lower, compared ~10-25% in exchanges in developed economies.
Consequently, a significant opportunity lies unearthed in the business of
data services, which offers room for further business growth.

ICICI Securities Ltd | Retail Equity Research

Page 6

Key strengths and strategies:

Strong brand recognition
BSE is Asias first and one of the most recognisable brand names in India.
BSEs global brand enables it to attract companies to its listing platforms
along with retail investors and other market participants. As of October
2016, BSE was the world's largest exchange by number of listed
companies, India's largest and the world's tenth largest exchange by
market capitalisation with $1.7 trillion in total market capitalisation of
listed companies. In terms of currency derivatives, BSE has witnessed an
increase in total number of contracts traded in currency derivatives from
8.7 crore in FY14 to 42 crore in FY16. According to CARE Research, BSE
ranks third globally in terms of currency options and futures contracts
traded in 2015 with 43 crore currency derivatives traded. Further, interest
rate derivatives segment turnover has also witnessed robust traction from
| 26 billion in FY14 to | 1141 billion in FY16.

Diversified source of revenue; execution of new ventures prerequisite

With BSE having an integrated and diversified business model, it touches
upon members and market participants at multiple points thereby
providing it the ability to generate revenue at multiple levels of business.
BSE derives revenue from various streams including revenue from
trading activities on the exchange, such as trading fees and trading tariffs,
revenue from post-trade services, such as clearing, settlement,
depository, custody and nominee service fees, and initial and recurring
listing fees from equity, debt & derivative products and subscription fees
from data products.
Exhibit 11: Break-up of revenue (FY14-Q1FY17)
Securities services
Services to corporates
Data dissemination fees
Income from Investment
Other Income
Total Revenue

FY14
187.2
59.1
20.4
218.3
44.8
529.8

FY15
233.7
105.4
22.1
222.6
41.0
624.8

FY16
243.0
161.1
22.4
189.7
42.1
658.3

Q1FY17
68.4
38.6
6.1
47.2
18.0
178.3

Source: RHP, ICICIdirect.com Research

Revenue sources related to market turnover include transaction charges,

auction charges and depository charges, while non-market turnover
related revenue includes investment income, training income, software
income and rental income. Though dependence on transaction volumes
has a high correlation with revenue performance, a diversified mix of
revenue from non-market related activity offers some reduction in
dependency on market volumes.
In FY16, revenue from operations (comprised revenue from securities
services, services to corporate and data dissemination fees) contributed
~64.8% of total revenues. Income from investment and other income
comprised 28.8% and 6.4% of total revenue, respectively. Proportion of
revenue of operation has been increasing from ~50.4% in FY14 to
~64.8% in FY16. In Q1FY16, revenue from operations continued to form
~63.4% of total revenue, while income from investment and other
income comprised 26.5% and 10.1% of total revenue, respectively.
Revenue growth has remained on a slower track in recent years
attributable to stagnancy in market share in equity trading at ~13-14%.
Also, planned listing of CDSL and divestment of ~24% stake held by BSE
is seen denting topline for a one-time inflow. However, focus on
introduction of newer products and innovation in existing product basket

ICICI Securities Ltd | Retail Equity Research

Page 7

bode well for future earning potential. Launch of international exchange at

GIFT City along with an international clearing corporation, BSE StAR, its
mutual fund investment platform, platform for trading in SME stocks are
steps undertaken to increase and improve scale and scope of business
potential. On the whole, right execution and profitable growth of these
undertaken ventures remain a prerequisite for an improvement in overall
business performance.

Strategic alliance and product innovation to strengthen position

BSE intends to strengthen its position as a preferred exchange in India
and expand its cross-border reach by entering into strategic alliances.
Currently, it has alliances including agreement with Deutsche Brse to sell
and market BSE market data and information to international clients.
Similarly, options and futures based on the S&P BSE Sensex are listed
and traded on Eurex and the Dubai Gold and Commodities Exchange. It
has partnered with IFC, a member of the World Bank Group, to develop a
corporate governance scorecard, which allows companies to assess their
corporate governance performance against national and international
benchmarked practices.
BSE actively evaluates products and asset classes outside its traditional
focus areas in order to diversify revenue sources and attract market
participants and issuers. Examples of past product innovations include
BSE StAR and BSE SME. BSE StAR, a mutual fund investment
platform, provided online platform for the placement of orders and
redemptions of units in mutual funds. The number of mutual fund
schemes available on BSE StAR has witnessed an increase from 4891 in
FY14 to 5724 in FY15 and further to 5989 in FY16. BSE also intends to
focus on currency derivatives and increase market share through
introduction of new products including index contracts, inter-currency
spread contracts and cross-currency derivatives (in each case subject to
regulatory approvals), increase foreign portfolio investor participation and
extending market timings for currency derivatives (subject to regulatory
approval).
BSE intends to establish an international exchange in the Gujarat
International Finance Tech City International Financial Service Centre
(GIFT City). Subject to receipt of necessary regulatory approval, the
international exchange will provide an electronic trading platform that
facilitates (i) Indian companies to raise capital in foreign currency by
issuing foreign currency denominated bonds and provide a trading
platform to trade in such securities, (ii) Indian start-ups to raise equity
from foreign investors by getting listed on the international exchange and
(iii) companies incorporated outside India to raise money in foreign
currencies by issuance and listing of their equity shares on the
international exchange. In addition, establishing a clearing corporation as
well as a depository is also part of the overall scheme.

Diversified integrated business model

BSE operates a diversified and integrated business model with a wide
variety of product and services. Portfolio offered by the exchange include
trading, clearing and settlement of products listed and traded on the
exchange, along with provision of data products, IT services and
solutions, index products and training. Listing and trading in a range of
products such as shares in companies and ETFs, units in close-end
mutual funds, corporate bonds and government securities, equity
derivatives and currency derivatives, as well as services such as securities
lending and borrowing are offered to customers. In addition, it provides
platforms to facilitate primary issuance of securities either through raising

ICICI Securities Ltd | Retail Equity Research

Page 8

fresh capital or offer for sale (OFS) of securities by substantial

shareholders of listed companies.
An integrated and diversified business model enables the exchange to
provide services to market participants and members throughout the
entire life-cycle of a trade. In addition, it helps to keep cost lower through
higher efficiency, thereby enhancing experience of market participants.
Such efforts to actively engage with market participants have led to an
increase in the number of unique members rising from 1375 in FY14 to
1446 as of September 2016.

State of art infrastructure and technology

Maintaining and improving infrastructure is critical to any exchange, as it
lays the foundation for growth and expansion by providing its customers
with an efficient and accessible marketplace, thereby enhancing its
competitiveness. With focus on reliability and consistency of IT
infrastructure, BSE has competitive electronic systems for entry, trading,
clearing and settlement and depository. BSEs electronic systems include
(i) BOLT+, a fully-automated online trading platform through which all
trades on the equity cash, equity derivatives and currency segments of
our exchange are executed and (ii) precision time protocol, a time
synchronisation standard that it adopted to ensure accurate and reliable
time synchronization across trading infrastructure. Apart from these,
functional improvements have been implemented across products
providing market participants with a seamless experience and efficient
operations.
With continues focus on increasing capacity, improving market efficiency
and transparency, substantial allocation of resources towards
infrastructure development is undertaken by the exchange on a regular
basis. In addition, continues effort is been undertaken towards
improvement in cyber-security framework and information security
management systems.
Exhibit 12: Financial Summary
| Crore
Revenue
EBITDA
Adjusted Net Profit
EPS (|)
Book value per share (|)
RoE (%)
RoCE (%)

FY12
537.7
318.9
172.4
33.3
429.0
7.9
12.2

FY13
509.6
267.5
118.8
22.9
441.6
5.3
10.2

FY14
485.1
242.7
135.2
26.0
457.0
5.8
9.7

FY15
583.7
264.2
129.5
24.2
480.8
5.4
8.7

FY16
616.2
258.4
122.5
22.9
490.7
5.0
8.2

Source: RHP, Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 9

Key risks and concerns

Inability to retain key personnel may impair ability to achieve strategic goals
Loss of or diminution in the services of employees in key positions could
lead to temporary reduction in operational efficiency. Inability to attract,
retain and maintain new executive officers or directors could impair ability
to achieve strategic goals and could have a material adverse impact on
reputation and/or business, financial condition, results of operations and
prospect. In addition, unavailability of obligation for nondisclosure of
know-how, knowledge, information, trade-secrets, etc, in managing
director employment agreement pose risk of information integrity, which
could have an adverse effect on the business.

Volatility in trading volumes exposes to profitability risk

A major proportion of BSEs revenues is dependent on trading volumes
and price level; primarily in equity segment, which is volatile in nature.
On the expenses front, substantial proportion including employee
expense and infrastructure maintenance expense are fixed in nature.
Consequently, operating expenses may not be quickly adjustable to
compensate volatility in revenues, which may have a material impact on
the financial condition, cash flows and results of operations.

LEIPS discontinuance may impact market share in equity derivative segment

In order to enhance liquidity in the futures & options segment and
increase share in derivatives segment, BSE has launched a series of
liquidity enhancement incentive programs (the LEIPS) in September 2011.
Consequently, an increase in equity futures & options turnover was
witnessed on the exchange. However, post FY13, a decline in equity
derivatives was witnessed, which intensified in FY15-16, led by a
reduction in incentives and subsequent removal of the scheme from April
2016. Equity derivative volumes dwindled by 99.9% from ~20.8 lakh
contracts traded per day in FY15 to 1446 in the six months ended
September 2016. Thus, significant erosion in trading volumes would
impact the financial performance while a revival in the segment remains
uncertain.

Increasing competition entails business risk

BSE competes globally with a broad range of market participants for
listings, clearing, trading and settlement volumes across different product
categories including cash equities, ETFs, structured products, futures,
options and other derivative products. Domestically, the exchange
competes with rival NSE on various metrics like cost, quality and speed of
trade execution, market liquidity, range of products and services offered
to customers and listed companies, and technological innovation &
reputation. With continuance in intensity of competition, downward
pressure may be exerted on fees and other charges, which could
adversely affect the business, financial condition and profitability.

ICICI Securities Ltd | Retail Equity Research

Page 10

Financial Summary
Exhibit 13: Profit and Loss Statement
(| Crore)
Revenue
growth (%)
Employee expense
Other opex
EBITDA
Depreciation
Interest expense
Other income
Operating income
Exceptional items
PBT
Taxes
Net Profit
Minority Interest
Adjusted Net Profit
EPS (|)

FY12
537.7
74.9
143.9
318.9
34.1
1.4
41.0
324.4
-60.5
263.9
64.3
199.7
27.2
172.4
33.3

FY13
509.6
-5.2%
77.2
164.8
267.5
28.3
2.5
43.4
280.1
-98.4
181.7
37.7
144.0
25.2
118.8
22.9

FY14
485.1
-4.8%
85.4
157.0
242.7
32.4
0.4
44.8
254.7
-60.7
194.0
34.0
160.0
24.8
135.2
26.0

FY15
583.7
20.3%
99.9
219.6
264.2
58.8
0.7
41.0
245.7
-50.8
194.9
43.8
151.1
21.6
129.5
24.2

FY16
616.2
5.6%
111.6
246.2
258.4
61.7
0.7
42.1
238.1
-46.6
191.5
32.4
159.1
36.6
122.5
22.9

Source: RHP, ICICIdirect.com Research

Exhibit 14: Balance Sheet

(| Crore)
Sources of Funds
Capital
Reserves and Surplus
Networth
Minority Interest
Borrowings
Other Liabilities & Provisions
Total
Applications of Funds
Fixed Assets
Investments
Current Assets
Other Assets
Total

FY12

FY13

FY14

FY15

FY16

10.4
2209.6
2220.0
155.3
306.1
1255.4
3936.7

10.4
2279.4
2289.8
173.3
0.9
1480.9
3944.8

10.4
2366.0
2376.4
187.5
1.3
1505.7
4070.9

10.7
2561.4
2572.1
198.6
3.6
1423.0
4197.3

10.7
2614.6
2625.3
222.3
1.9
1357.4
4206.9

203.8
1387.4
2310.1
35.3
3,936.7

214.2
1353.6
2313.4
63.6
3,944.8

224.2
2186.3
1573.6
86.7
4,070.9

254.3
2276.2
1572.9
94.0
4,197.4

249.6
2062.4
1762.3
132.7
4,207.0

FY12

FY13

FY14

FY15

FY16

5.2
33.3
429.0
24.2
1.9

5.2
22.9
441.6
35.2
1.8

5.2
26.0
457.0
31.0
1.8

5.4
24.2
480.8
33.3
1.7

5.4
22.9
490.7
35.2
1.6

59.3
37.1
32.1

52.5
28.3
23.3

50.0
33.0
27.9

45.3
25.9
22.2

41.9
25.8
19.9

7.9
12.2

5.3
10.2

5.8
9.70

5.4
8.70

5.0
8.20

Source: RHP, ICICIdirect.com Research

Exhibit 15: Key Ratios

(Year-end March)
Valuation
No. of Equity Shares (Crore)
Calculated EPS (Rs.)
Calculated BV (Rs.)
P/E
P/BV
Calculated margins (%)
EBITDA margin
PAT margin
Adj PAT margin
Return Ratios (%)
ROE
RoCE

Source: RHP, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

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RATING RATIONALE
ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its
stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold
and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts'
valuation for a stock.
Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction;
Buy: >10%/15% for large caps/midcaps, respectively;
Hold: Up to +/-10%;
Sell: -10% or more;

Pankaj Pandey

Head Research

pankaj.pandey@icicisecurities.com

ICICIdirect.com Research Desk,

ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No 7, MIDC,
Andheri (East)
Mumbai 400 093
research@icicidirect.com

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ANALYST CERTIFICATION
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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)
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