Close of a chapter

Vol. XXXI/25 Mutual fund reforms, insider trading norms and hefty fines on
Jan 30 Feb 12, 2017
www.capitalmarket.com heavy-weights marked the tenure of the outgoing Sebi chief
......................................................................................................................................
The term of the current boss of the Securities and Exchange Board of India is likely to
Owner : Capital Market Publishers India Pvt. Ltd.
...................................................................................................................................... end on a tamer note as his appointment was tumultuous. UK Sinhas entry was
Managing Director : Ruby Anand
...................................................................................................................................... overshadowed by speculation over the denial of extension to his predecessor. The
Editor : Mohan Sule initial period was tough. He inherited a nasty battle with Jignesh Shah, an ambitious
......................................................................................................................................
entrepreneur who seemed to have dazzled investors and media with the growth trajec-
Deputy Editor : Yagnesh Thakkar
...................................................................................................................................... tory of his flagship trading software maker, FTIL, and his daring move to set up a
REGISTERED OFFICE private commodity exchange. Eventually, the watchdogs tenacity prevailed, with the
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top executives were barred from the capital markets for three years for suppressing
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...................................................................................................................................... group (ADAG) Chairman Anil Ambani and four of its directors from investing in the
Cover Price: Rs 75 markets till December 2011. ADAG companies Reliance Infrastructure (RelInfra) and
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2017 Capital Market Publishers India Pvt. Ltd. than mutual funds till December 2012. The probe was closed after Ambani, RelInfra,
All rights reserved. Reproduction in whole or in part without RNRL and the directors collectively paid Rs50 crore as settlement amount. NDTV
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All possible efforts have been made to present factually correct
data. However, the publication is not responsible, if, despite this, Rs 450-crore tax demand early 2014. Piramal Enterprises and its promoters including
errors may have crept in inadvertently or through oversight. Ajay and Swati Piramal were fined Rs 6 lakh for violating insider trading norms while
Though all care is taken in arriving at the recommendations
given in this publication, readers are cautioned that prices of selling its healthcare business to Abbott Laboratories in May 2010. However, in a
equity shares and debentures may rise or fall in a manner not
foreseen. Readers are advised to take professional advice setback, the Securities Appellate Tribunal set aside a penalty of Rs 13 crore imposed
before investing. on Reliance Industries for failing to disclose and compute diluted earnings per share
Subject only to Mumbai jurisdiction
...................................................................................................................................... for six quarter while issuing 12-crore convertible warrants to promoters. The indict-
Printed and published by Ruby Anand on behalf of Capital Market ment by a committee, formed to look into allegations of unfair access given by the
Publishers India Pvt. Ltd. Printed at Magna Graphics (I) Ltd NSE to some brokers with servers on their premises, is a befitting swan song of Sinha,
Kandivili (W), Mumbai - 400 067 and published from 401, Swastik
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Mumbai 400 071.
MOHAN M SULE
Jan 30 Feb 12, 2017 CAPITAL MARKET 3
ReadersReact
Challenging times
Investors are getting jittery. It
is difficult to take a call on the
market. (Stocks: Triggers in
place, Jan 02 15, 2017)
However, it is also true that
challenging times are the best
period to cherry-pick stocks.
One of the ways to explore the
world of equities is to figure
out triggers for the stock.
Sujoy Batra, e-mail
Investment in future growth is
a crucial trigger. In fact, this is
one of the most important
triggers investors should
explore while arriving at stocks
with significant potential
upside. Investment is a prime
indicator of the confidence the
management has in its business.
However, it is essential to
check the credibility of the
management in implementing
large-scale projects.
K Tirtha, e-mail
Non-company-specific triggers
including industry-specific
ones include prices of
commodities that are inputs or
outputs for companies in
specific sectors, regulatory
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4 Jan 30 Feb 12, 2017 CAPITAL MARKET
developments and even
environmental norms.
Rajeev Talukdar, e-mail
In a flux
Slowly but surely the edifice
that sustained and spread
politics of patronage to every
institution in the country for
more than 60 years is being
dismantled (Editorial: New
beginnings, Jan 02 15,
2017). The rotting monument
to deification of political
families, built by those
campaigning on the platform
of wealth distribution and
equality but making a
comfortable political career out
of poverty perpetuation on
one hand and crony capitalism
on the other, is being brought
to ground, brick by brick.
Subramaniyam Venkatesh, e-mail
If Narendra Modi was
genuinely interested in
curbing black money, he
would have made the
donations given to political
parties be made in white. At
present, donations to
political parties can be made
without giving Pan if they are
below Rs 20000. Conve-
niently, all donations are
made below Rs 20000. On
the other hand, the general
public have been asked to
give Pan for depositing of
Rs 500 in banks. Why should
not the same rule be applied
to political parties? Even the
Election Commission has
asked the limit be reduced to
Rs 2000. Political donations
are the fountainhead of all
corruption and people make
it in the hope of getting
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see page 7
undue and undeserved favours
from the people in power.
Radheshyam Sharma, e-mail
GST will prevent tinkering
with indirect taxes by the
profligate Central and state
governments to finance their
populist schemes. This was
the easy way out for lazy as
well as venal policy makers to
punish or reward competitors
of friendly donors.
Piyuss Ramavat, e-mail
The debate over
demonetizations objective is
fruitless. The fact is it can
achieve multiple tasks. Apart
from making counterfeiting
difficult and sucking out
unaccounted
cash, the
amnesty scheme
has given an
idea about the
identity and earning capacity
of the depositors. The cribbing
about inadequate liquidity is a
covert form of pressure on the
government to go back to the
old ways when cash transac-
tions dominated the GDP.
Deelip Sakariya, e-mail
Gains and losses
In the initial period post the
demonetization of high-value
currency notes on 08 Novem-
ber 2016, the banking sector led
by public sector banks (PSBs)
posted healthy returns on the
back of surge in deposits and
sharp dip in yield on govern-
ment securities (Bank:
Demonetization blues, Jan 02
15, 2017). PSBs performed
better compared with private
banks as they were seen
benefitting from the inflow of
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deposits with their larger share
in branch network.
Viraj Sinnur, e-mail
Banks share prices drop
accelerated further after the
Reserve Bank of India
maintained status quo on the
policy interest rate at the
monetary policy review on 07
December 2016 as against
expectations of interest rate
cut. The bonds reversed the
rally in prices, reducing hopes
of hefty treasury gains.
Gopal Birbhum, e-mail
The disruption to the economy
due to cash crunch post
demonetization is likely to
weigh on the credit growth and
asset quality of the banking
sector. The cash-intensive
borrowers of the banking sector
in the retail, SME and mortgage
segments have been affected.
Harish Tundi, e-mail
A shift in taste
On-demand entertainment
services led by audio and
video content are on the cusp
of inflection point in India
free data offer, fall in data
pack prices and improved
availability of public WiFi
(Media and Entertainment:
Viewers choice,
Jan 02 15, 2017). With the
increasing demand for on-
demand videos and music
download and streaming of
content, a very promising
supply-side ecosystem is
evolving, with multiple
players launching their digital
streaming platforms.
Sagar Girja, e-mail
Send your feedback to
readersreact@capitalmarket.com
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Inside
14 | In Focus
Housing Finance Companies
Winners and losers

17 | Over The Counter

Whos selling, whos buying
08 | Cover Story
Promoter raises Dr Reddys stake
Stocks: Staying focused
20 | Market Watch Companies maintaining a healthy balance sheet and rewarding shareholders
Movers and shakers even in their quest for growth get better discounting

Economy data offer hope

Sizzlers and dampeners 78 | Sector Snapshot 89 | Commodity Watch
Cement Gold
68 | Stock Watch Input cost up, usage down Good times ahead
Mazda Power
Focused on niche segment Generation up on low base 90 | Capitalaline Corner
Tea Agro Tech Foods
70 | RingsideView Prices under pressure Margin-led growth
Updates on South Indian Bank,
Bajaj Corp, Havells India, Hindustan
Media Ventures, Can Fin Homes,
Trident, Ujjivan Financial Services and 83| APNA MONEY 32 | Corporate Scoreboard
Canara Bank
Sum of parts 61 | Consolidated Scoreboard
How are ETFs different from
74 | Sector Report regular MFs? 63 | Company Index
Alcoholic Beverages Does audit of books depend on 67 | Bulletin
In low spirits turnover or P&L?
68 | Watch List

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6 Jan 30 Feb 12, 2017 CAPITAL MARKET

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CoverStory
CoverStory
Stocks
Staying focused
Companies maintaining a healthy balance sheet and rewarding shareholders
even in their quest for growth get better discounting
Investing in equities is taking exposure to
businesses. Businesses are not easy to evalu-
ate and assess. There are hundreds and thou-
sands of investors exploring stocks 24x 7.
All these investors have their independent
way of thinking, unique experiences and in-
dividual risk and reward expectations. No
wonder, stocks are more volatile compared
with other assets. Business dynamics
changes rapidly.
Value of any investment is judged by its
earning capacity: fixed and variable returns.
Stocks offer two revenue streams: dividends
and growth. Capital appreciation is not cer-
tain. There might be capital loss as well.
Considering earnings or profit as key
element influencing valuations of any busi-
ness, the price to earnings (P/E) ratio is the
most popular tool to judge the efficiency of
any business. The earnings are dependent
on the strategies adopted by the manage-
ment to exploit chosen opportunities.
Earnings are influenced by company-
specific attributes as well as non-company-
specific attributes. Both are equally impor-
tant while exploring stocks for investment.
For companies to command high valuations
and create shareholder wealth, a companys
businesses should flourish.
The real worth of a business is reflected
in the market capitalization of companies.
8 Jan 30 Feb 12, 2017 CAPITAL MARKET
Indeed, the value of any company is directly
influenced by the strengths of its businesses.
Strategies adopted by management can make
or break enterprises.
A close look at companies reveals cer-
tain unique features such as style and cul-
ture. In fact, over a period of time, a com-
pany becomes known for its attributes.
These could be transparency in dealings,
belief in organic or inorganic routes for ex-
panding, focusing on branding and so on.
Investors often come across statements
about the top management being conscious
about return on equity (ROE) or return on
capital employed (ROCE) while exploring
new proposals. Similarly, several firms stay
away from debt as a matter of prudence
and principle.
Capital Market examined several
qualitative and quantitative factors that
define the broad framework within which
companies operate. These could be op-
erational, financial, management or stra-
tegic disciplines.
Broadly, companies can be seen main-
taining discipline on multiple fronts. Be-
sides returns, these include the operating
profit margins (OPM) and net profit mar-
gins (NPM). These ratios are based on ab-
solute profitability as well as profitability
in relation to money invested in businesses.
Stocks
Invariably, companies can be conscious
about how much they earn on their capital,
whether equity or total capital comprising
equity and debt. Such companies are likely
to enter new areas if they offer higher re-
turns on their investments or at least as
good as the current businesses. The profit
margins indicate the kind of buffer enjoyed
by the business. A comfortable percentage
is an indicator of the strength and stamina
to face competition.
Discipline in maintaining balance-sheet
strength is another critical frontier. For in-
stance, companies with a low debt-to-eq-
uity ratio or nil debt over the long term
signal averseness to leverage. This means
these companies have been relying on in-
ternal accruals over the years to finance
growth. Debt might improve ROE up to a
point. However, when faced a challenging
business environment, debt might prove to
be a killer as interest on borrowings is a
fixed cost and needs to be settled irrespec-
tive of profit or loss.
Another aspect is companies running the
show with negative working capital. This
might sound weird. Many companies can
be seen largely financing their working capi-
tal through trade finance including creditors.
Such companies offer little or no credit to
their customers. Some of them even demand
CoverStory
advances for their products and services. The able. Steady dividend payout is like sharing
amazing feat of managing working capital a certain portion of profit year after year
and balance sheet reflects their pole posi- with investors for contributing risk capital.
tion in the market. As a matter of fact, the In addition, the focus was on compa-
development cannot be an accident but is nies issuing bonus shares at periodic in-
the result of a well planned and executed tervals. Such instances are also a culmina-
strategy. Therefore, companies with no debt tion of a well thought-out strategy to re-
year after year and those with negative work- ward shareholders (see box: Looking for
ing capital were picked as potential invest- assured returns).
ment candidates. Choice of business model also reflects
Increase in revenues and profit is an- the vision of the management. Some compa-
other pointer to the capabilities of the man- nies emphasise on a single line of business.
agement to steer their businesses to greater This strategy might seem boring but has its
heights and create shareholder wealth in this own advantages. Such benefits include gradu-
journey. Companies to have reported decent ally strengthening market share, building
and steady growth over the medium term brands and goodwill, commanding better
were also shortlisted. bargaining power in the market place, creat-
The means adopted by the management ing entry barriers and so on. Thrust on a
to reward their shareholders is another char- single line of business and averseness to di-
acteristic to be noted by investors. Many versification might look a risky proposition.
companies have maintained dividend pay- Yet several companies can be seen smoothly
out ratio at a very steady level for years. It running their businesses in their niche mar-
is nothing but incredible craftsmanship of kets and making good quantum of money.
the management. It also reveals concern for Introducing and building brands recur-
the shareholders. Several of them rely on rently is another virtue. In fact, in the present
dividends for their livelihood. Therefore, times, intangible assets are more valuable
predictability in dividend payout is desir- than tangible assets. Brands could be the
A clear-cut strategy
Companies adhering to transparency in dealings, believing in organic or inorganic
routes for expanding and focusing on branding
COMPANY HIGHLIGHTS
Nestle Negative working capital company not including current investment of Rs
983 crore and cash and bank balances of Rs 499 crore end FY 2016.
Castrol Bonus shares were issued on eight occasions, with the first being in CY
1986 (1:1) and the latest in CY 2012 (1:1).
Godrej Consumer Products Mergers and acquisitions key growth strategy. Building presence in three
emerging markets (Asia, Africa and Latin America) across three product
categories of home care, personal wash and hair care.
Gruh Finance Unique business model targets customer for housing loan with no formal
income documents.
MCX No controlling promoters, with operations run by professional managers.
FAG Bearings Part of the Schaeffler Group of Germany, among the leading manufacturers
of rolling bearings in the country.
Mayur Uniquoters The manufacturer of artificial leather achieved significant growth in
capacities with little or no debt. Reported fairly consistent growth in profit.
Shree Cement Consistently added capacities through organic growth, with little balance
sheet leverage. Production capacity stood at 25.6 mtpa and the debt-to-
equity ratio was at 0.16 times end FY 2016.
M&M Financial Services Distribution reach consists of 1,180 offices covering 27 states and four
union territories. Since inception, achieved over 4.41 million vehicle
finance customer contracts.
Symphony Focuses on asset-light model. Outsources a significant portion of
revenues.
Source: Companies, news reports
Jan 30 Feb 12, 2017 CAPITAL MARKET
Stocks
real differentiator. Thus, companies launch-
ing brands on a consistent basis and nurtur-
ing them to create a healthy product basket
were picked.
Companies building capacities gradually,
with little or no debt, is another example of
pursuing of growth with discipline. Aggres-
sive expansion financed by a huge pile of
debts can back fire.
On the other hand, companies opting
for acquisitions at periodic intervals while
maintaining the balance- sheet health are the
right picks for investors in hurry. There is a
limited set of companies falling in this league
but are interesting to watch out for.
Establishing an integrated business
model can yield significant benefits over the
long run. The discipline ensures better profit
margins and adds reliability to production.
Focus on technology across business ven-
tures and segments, too, is an important
philosophy. Companies whose promoters
are moving towards professional manage-
ment are another interesting category to ob-
serve. The aim is to limit promoter feuds
and conflict of interest. .
From these companies, only those with
a price-to-book value (P/BV) of more than
two times were preferred. A premium on
book reflects positively on the management.
However, as an exception, Tata Steel (P/BV
of 1.21) was included despite P/BV of less
than 2. The company was added for its inte-
grated business operations.
Different aspects of a company attract
different types of investors. Investors with
a low risk appetite might prefer companies
undertaking organic growth, while aggres-
sive investors might opt for those betting
on mergers and acquisition to increase in
market share.
ROE of Wim Plast was fairly stable,
ranging between 23.06% and 24.91%, over
the last five years. Also ROCE ranged be-
tween 32.5% and 34.6% during this period.
The maker of plastic molded furniture, plas-
tic extrusion sheets, moulds and air coolers
has manufacturing units at Daman, Baddi in
Himachal Pradesh, Chennai in Tamilnadu,
Haridwar in Uttarakhand and Kolkata in
West Bengal and corporate office in Mumbai.
As many as 20 molded furniture product
and 23 new coolers in the window, desert,
mini desert and personnel cooler categories
were launched in FY 2016. Products are sold
under the Cello brand.
A joint venture (JV) was entered with
Moldetipo, Portugals leading manufacturer
9
CoverStory Stocks

Looking for assured returns expansion plan, says the company in

its annual report for FY 2016.
In the long run, dividend becomes the key source of income and can deliver Out here, the trick is in stock
superior returns on the initial investment selection and staying with the stock
The dividend yield on most stocks is compared with the current dividend for a long time. Basically, companies
peanuts. To get a feel about the yield of 0.76%. Its dividend policy with a good track record of profitabil-
pathetic dividend yield, look at the aims to balance the dual objectives of ity can offer far superior and
current dividend yield of the S&P BSE appropriately rewarding shareholders unmatchable returns through dividends
Sensex (dividend yield of 1.45%), the through dividends and retaining capital over the long term.
S&P BSE Mid-Cap index (1.22%) and to maintain a healthy capital adequacy Profit can be distributed as
BSE S&P Small-Cap index (0.80%). An ratio to support future growth. The dividend and/or retained for future use.
investor, taking exposure to the Sensex bank has had a consistent track record The retained earnings can be deployed
with the intention to earn only of steady increase in dividend distribu- for several purposes such as financing
dividends and ignore capital apprecia- tion, with the dividend pay-out ratio of expansion, investment in new
tion or depreciation, will require nearly ranging between 20-25%. ventures, financing of working capital,
69 years to get back his capital! Similarly is the story with Mayur repayment or prepayment of debt and
Clearly, it is not sensible to invest in Uniquoters. It paid a dividend of Rs buyback of shares.
stocks to earn dividend in the short 3.5 per share or 70% on face value of In the long run, dividend becomes
term. Investing for dividend makes Rs 5 in FY 2016. The current dividend the key source of income and can
sense in the medium to long term. yield offered by the stock is an deliver superior returns on the initial
Dividend is determined considering insignificant 1%. However considering investment. Therefore, investors
the current market price. What about its stock price of Rs 43 in 2012, the should assess the dividend policies of
investors who have invested in stocks dividend yield comes to 8.1%. More- companies. Those keen on dividend
in the past? For long-term investors, over, taking into account the stock should look for consistency. Select
the dividend yield on the acquisition price of Rs 5 around a decade ago, the companies that are transparent about
cost can be superlative. dividend yield soars to 70%. their dividend policies.
HDFC Bank is a classic example. Mayur has always strived to Capital Market picked 11 compa-
The private sector bank paid Rs 9.5 maintain a balance by providing an nies with amazing stability in the
per share dividend in the fiscal year appropriate return to the shareholders, dividend payout ratio and reporting
ended March 2016 (FY 2016). Based while simultaneously retaining a decent growth in profit consistently.
on the stock price of around Rs 32 reasonable portion of the profit to Growth in business provides scope for
prevailing in 2000, the dividend yield maintain healthy financial leverage with capital appreciation.
works out to 29.7%, way too high a view to support and fund the future The dividend payout ratio is
calculated as equity dividend upon
adjusted profit after tax (APat) and
A tasty combo expressed in percentage terms. The
dividend distribution tax is deducted
Companies with a stable dividend payout ratio and have reported a minimum of
from APat. Also, it can be determined
100% jump in net profit in the last five financial years as dividend per share upon earnings
COMPANY CMP FY APAT GROWTH DIVIDEND MEDIAN LATEST DIVIDEND per share. The ratio reveals the
quantum of profit is shared with the
(Rs) (Rs cr) IN APAT (%) PAYOUT PAYOUT YIELD equity shareholders in the form of
(TIMES) RATIO (%) (%) (%) dividend. The select companies have
HDFC Bank 1234.9 201603 12801.4 3.2 475 19.5 19.5 0.76 reported profit and steady dividend
Mayur Uniquoters 358.2 201603 77.4 3.0 70 22.5 23.0 0.99 payout ratio over the last five
Wim Plast 1621.9 201603 45.0 2.5 120 16.5 16.5 0.37 financial years.
Amara Raja Batteries 925.9 201603 484.8 3.3 425 15.4 15.3 0.46 The dividend payout ratio might be
La Opala RG 464.6 201603 58.8 6.3 90 17.6 17.6 0.39 stable over the years but dividend in
Aarti Drugs 620.7 201603 68.7 2.9 67.5 26.7 26.0 1.09 percentage terms might fluctuate based
Astra Microwave Products 118.0 201603 56.2 3.0 60 18.1 19.2 1.02
on earnings reported by a firm. This is
because payout is essentially a profit
Cadila Healthcare 361.3 201603 1516.7 2.1 320 23.2 22.1 0.89
share. Generally, companies strive to
HDFC 1241.4 201603 10190.3 2.3 850 36.9 36.6 1.36
maintain or increase dividends in
Vinati Organics 699.1 201603 131.5 2.5 200 17.7 16.2 0.57 percentage terms as any significant
CMP (current market price) is closing as on 19 January 2017. FY: Financial year. Consolidated financials considered wherever
available. Growth in APAT (times): growth in adjusted profit after tax is considering five years.
decline in dividends is considered a sign
Source: Capitaline Databases of trouble by the market.

10 Jan 30 Feb 12, 2017 CAPITAL MARKET

CoverStory
of molds, to manufacture high quality auto-
motive molds and services for interiors, ex-
teriors and under the bonnet parts. Mutual
funds held 1.61% stake end September 2016.
Bonus shares were issued in the ratio of 1:1
in August 2016. Debt-free for the last seven
years, there is an uninterrupted track record
of dividend for almost last two decades.
The recent spike in crude oil prices is
matter of concern as it will increase cost of
raw materials. A significant presence of
small and unorganized players continues
to be a challenge.
Balkrishna Industries scores on
ROCE that moved between 17% and 19.1%
over the last five years. It improved to 19.1%
in FY 2016 as against 17% in FY 2015 and
18.2% as of FY 2014. Debt declined to Rs
1914.4 crore end March 2016 compared
with Rs 2357.8 crore a year ago. The debt-
to-equity ratio was down to 0.84 times from
1.15 times. Cash balance stood at Rs 1013
crore end September 2016.
Founded in 1987, the manufacturer
the off-highway tire market is specialist
Stocks
6% market share in the off-highway tire seg-
A prudent approach ment. There is an established global distribu-
tor network, with replacement market ac-
Balkrishna Industries scores on ROCE counting for 73% and original equipment
(between 17% and 19.1% over the last five manufacturers 24%.
years). The debt-to-equity ratio was down
to 0.84 times from 1.15 times
A volume guidance of 1.60 lakh to 1.70
lakh tonnes has been given for the current
1250
fiscal. An ambitious green-field project was
Balkrishna Industries
1100
completed at Bhuj in Gujarat last fiscal. In-
Face Value: Rs 2 crease in prices of natural rubber is an im-
950 mediate challenge. Debt reduction contin-
ues to be one of the priorities.
800
Supreme Industriess operating profit
650 margins (earnings before interest, deprecia-
xxxxx tion and tax margin) have remained steady
500
F M A M J J A S O N D J and firm between 13.5% and 14.8% in the
2017
last five years. The plastic product manu-
Current market price Rs 1128 as on 23 January 2017. One-year
return: 80.19%. S&P BSE Sensex one-year return: 12.35%. facturer has a wide range of products in
various categories of plastic piping sys-
in segments of agricultural, construction, tem, cross laminated films and products,
industrial vehicles, earthmoving, port protective packaging products, industrial
and mining, all terrain vehicles and gar- molded components, molded furniture,
dening applications. storage and material handling products,
Exports go to 130 countries. Around 85% performance packaging films and compos-
of the revenues come from exports. There is ite LPG cylinders.

A disciplined approach
Companies focussing on OPM, NPM, balance-sheet strength and working capital, recording increase in revenues and profit, maintaining
dividend payout ratio, issuing bonus shares, building capacities with little or no debt, and with P/BV of more than two times, except Tata Steel

COMPANY CMP MCAP 52-WEEK MUTUAL FUND FY ROCE ROE DEBT- P/E P/BV DIVIDEND
(Rs) (Rs cr) HIGH LOW HOLDING (%) (%) (%) EQUITY RATIO YIELD
(Rs) (Rs) as of RATIO (%)
Castrol India 405.5 20054.5 495.0 354.0 201609 10.42 201512 172.9 114.75 0 30.4 29.19 2.22
Berger Paints India 213.35 20715.3 276.8 157.3 201612 1.00 201603 31.5 27.01 0.36 47.71 12.75 0.55
Dabur India 276.65 48732.5 320.3 231.3 201612 1.24 201603 35.1 33.42 0.2 37.48 10.44 0.98
Goodyear India 723.5 1669.1 921.0 443.1 201612 6.36 201603 27.6 18.33 0 14.12 2.56 1.66
Mah & Mah Financial Services 292.8 16653.4 405.0 173.4 201612 8.40 201603 10.6 12.69 5.1 22.83 2.5 1.37
Mayur Uniquoters 358.2 1639.8 479.9 324.0 201612 6.14 201603 33.1 22.11 0.08 23.26 4.89 0.99
Shree Cement 15576.8 54269.6 18519.0 9410.6 201612 4.41 201603 9.4 10.59 0.16 93.41 8.78 0.15
Tata Steel 467.1 45365.5 469.5 211.3 201609 9.02 201603 0 0 2.79 0 1.21 1.71
Godrej Consumer Products 1568.05 53407.9 1710.0 1120.0 201609 0.52 201603 21.0 24.64 0.6 44.3 11.81 0.37
Nestle India 5895.75 56846.8 7390.0 4990.0 201612 1.59 201512 30.5 31.47 0.01 57.97 17.94 0.82
Info Edge (India) 872.25 10564.4 1012.0 690.0 201609 12.08 201603 -23.2 -30.78 0 0 9.07 0.34
Rallis India 212.6 4134.4 246.0 142.0 201612 9.71 201603 20.4 17.13 0.13 24.55 3.87 1.18
Supreme Industries 888 11280.0 1023.0 645.0 201609 5.72 201603 28.0 21.58 0.32 29.46 7.53 0.84
Multi Commodity Exchange 1209.75 6169.7 1420.0 726.0 201612 18.72 201603 7.4 4.3 0 137.02 5.11 0.54
Balkrishna Industries 1157.35 11186.8 1280.0 551.4 201612 14.49 201603 19.1 22.75 0.84 20.89 4.01 0.48
Wim Plast 1621.9 1946.8 1660.0 775.5 201609 1.61 201603 33.2 23.06 0 43.12 9.1 0.37
Fag Bearings India 3842.2 6385.7 4998.0 3706.5 201609 26.39 201512 24.2 16.51 0 32.86 4.65 0.26
Astral Poly Technik 386.85 4633.2 526.4 334.1 201612 5.22 201603 18.2 14.54 0.29 36.53 5.96 0.1
GRUH Finance 341.15 12415.5 370.0 227.0 201612 7.97 201603 11.6 31.49 11.93 45.31 12.9 0.67
Symphony 1196.85 8372.8 1465.0 978.0 201612 4.86 201603 69.0 50.52 0 69.28 26.28 1.04
Consolidated financials considered wherever available. CMP (current market price) is closing as on 19 January 2017. MF: Mutual fund. FY: Financial year. P/E: Price to earnings ratio. P/BV: Price to book value
Source: Capitaline databases

Jan 30 Feb 12, 2017 CAPITAL MARKET 11

CoverStory
Certain high-cost debt was repaid in re-
cent months to reduce the average cost of
borrowings. There are plans to bring down
the leverage further. The debt-to-equity ra-
tio was 0.32 times, with debt of Rs 412.8
crore, end March 2016. Capital expenditure
is envisaged at Rs 250 crore in the current
fiscal. A search is on for a suitable location
in south India for a new plant.
There is 29.99% equity stake in Supreme
Petrochem, with market capitalization of Rs
2154 crore. Increase in prices of polymer, a
key raw material, owing to jump in prices of
crude oil is expected to put pressure on the
profitability margins.
Tata group company Rallis India re-
ported among the most stable NPM in the
listed universe. Even the OPM is steady.
The NPM moved between 7.66% and 8.5%,
while the OPM was between 14.26% and
15.53% in the last five fiscals.
The agrochemicals producer, with estab-
lished marketing and distribution network
in the rural markets, has a comprehensive
portfolio of crop care solutions. There is a
contract manufacturing alliances with sev-
eral multinational agrochemical companies.
Business is segmented into domestic crop
protection, contract manufacturing, seeds,
plant growth nutrients, agri services and in-
ternational business.
The balance 19,421 shares of Zero Waste
Agro Organics were acquired for Rs 19.5
crore, thus converting the organic manure
and soil conditioner producer into a wholly
owned subsidiary. Moderately leveraged,
with debt of Rs 89.8 crore and a debt-to-
equity ratio of 0.13 times end March 2016,
mutual fund controlled 9.71% equity end
December 2016.
What is unique about Info Edge is the
negative working capital. At the consolidated
level, without cash and bank balance of Rs
1179 crore and current investment of Rs 83.7
crore, working capital turned negative to Rs
253.5 crore end March 2016, reflecting the
strength of the business of the debt-free com-
pany for the last several years.
Job portal Naukri.com is its flagship
product, with three-fourth traffic share.
Other online businesses include
99acres.com (real estate), Jeevansathi.com
(matrimonial site), Naukrigulf.com (job site
for the Gulf region) and Shiksha (educa-
tion). Infrastructure includes 71 company-
owned offices in 44 cities.
There is 46% stake in Zomato, a portal
dedicated to restaurant ratings and review.
12
Stocks
tive bias tyres including farm tyres and
Stable growth commercial truck tyres at the Ballabgarh
plant in Haryana also trades in Goodyear
Rallis Indias NPM moved between
7.66% and 8.5%, while the OPM was branded tyres including radial passenger
between 14.26% and 15.53% in tyres and off-the-road (OTR) tyres manu-
the last five fiscals factured by Goodyear South Asia Tyres
Pvt Ltd, Aurangabad.
250
Face Value: Re 1 The other products marketed include
Rallis India
225 tubes, flaps and radial OTR imported tyres.
With more than a century-old presence, stra-
200
tegic advantage is derived from parent
175 Goodyear Tire & Rubber Company, US.
Significant efforts have been made to
150
refresh the passenger vehicle replacement
xxxxx
125
business with the introduction of several new
F M A M J J A S O N D J and differentiated products. Also, offerings
2017
Current market price Rs 215 as on 23 January 2017. One-year in the sports utility vehicles segment were
return: 45.37%. S&P BSE Sensex one-year return: 12.35%. strengthened. The focus is on expanding dis-
tribution footprint. Rapid strides have been
Zomato is present in 23 countries, with da- made in expanding the branded-store format
tabase of 1.2 million restaurants across the in recent times.
world. Other strategic investments include Berger Paints, the second largest paint
Policybazaar (financial product compari- producer in the country by value, issues bo-
son), Meritnation (education site for school nus shares at regular intervals. Bonus shares
children), Mydala (deals and discount site), were issued on seven occasions, the latest
Canvera (professional photographers), Hap- being in the calendar year (CY) 2016, in the
pily Unmarried (designing and selling fun ratio of 2:5. Earlier, bonus shares were is-
products), BigStylist (beauty related ser- sued in CY 2006 (3:5), CY 2004 (1:2), CY
vices), VacationLabs (solutions for tour and 1998 (1:1), CY 1988 (1:1), CY 1973 (7:15)
activity operators), Unnati (employment and CY 1967 (1:2).
solutions for informal sector) and Rare Me- The decorative business constitutes
dia Company (field sales force management over 70% of the overall revenues. The flag-
solutions). Mutual owned 12.08% stake end ship brands include Silk, Weathercoat All
September 2016. Guard and Easy Clean. Also, there is pres-
Goodyear India is debt-free company ence in construction chemicals. Paintable
for the last several years. Moreover, the wallpapers are to be launched shortly.
cash hoard of Rs 333.5 crore end March An integrated paint plant is being set
2016 amounted to 20% of the market capi- up at Naltoli in the Nagaon district of
talization. The manufacturer of automo- Assam, with initial annual capacity of
24,000 kilo liters (kl) of water-based paints
and 13,200 kl of solvent-based paints, to-
Rewarding shareholders
gether with a corresponding resin manu-
Berger Paints issued bonus shares on facturing facility. In addition, the British
seven occasions. The debt-to-equity ratio paints division is setting up a distemper
moderated to 0.36 times end March 2016 (capacity 1,200 tonnes per annum or tpa)
from 0.52 times a year ago and putty (6,000 tpa) manufacturing facil-
275 ity at Nalbari near Guwahati,
Berger Paints The debt-to-equity ratio moderated to
250
Face Value: Re 1
0.36 times end March 2016 as against 0.52
225 times a year ago. The ability to pass on the
cost escalation due to increase in prices of
200
crude oil needs to be seen.
175
An integrated business model is hallmark
of Tata Steel. In November 2015, the Tata
xxxxx
150
F M A M J J A S O N D J
group company began commercial produc-
2017 tion (phase I) at the Kalinganagar integrated
Current market price Rs 210 as on 23 January 2017. One-year steel unit in Odisha. Capital expenditure of
return: 18.51%. S&P BSE Sensex one-year return: 12.35%.
Rs 22000 crore was incurred for the phase I
Jan 30 Feb 12, 2017 CAPITAL MARKET
CoverStory
housings the countrys largest blast furnace,
with production capacity of 3.2 million tpa
(mtpa). With this expansion, total crude steel
capacity touched 13 mtpa, with Jamshedpur
accounting for the remaining 10 mtpa. An-
other three-mtpa capacity will be added in
phase II at Kalinganagar.
The Jamshedpur and Kalinganagar are
integrated plants, with raw material supply
secured through iron ore mines and quarries.
Besides, with the latest expansion, the prod-
uct portfolio has been augmented with high
grade flat products for ship building, defence,
energy, infrastructure and aviation.
On the flip side, the business operations
in the United Kingdom, under Tata Steel UK,
continue to remain under stress. With the exit
of Cyrus Mistry from the helm of the Tata
group, the next move on the UK business is
awaited. Mistry had undertaken several mea-
sures such as restructuring and divestment to
turn around the UK business. The balance
sheet remained overleveraged, with debt of
Rs 86,203.8 crore and a debt-to-equity ratio
of 2.8 times, end March 2016.
Fast-moving consumer goods (FMCG)
company Dabur India, the worlds largest
Ayurvedic and natural healthcare company,
has developed several brands. The FMCG
portfolio includes five flagship brands
comprising Dabur (master brand for natu-
ral healthcare products), Vatika (personal
care), Hajmola (digestives), Real (fruit-
based beverages) and Fem (fairness
bleaches and skincare).
Other brands are Odomos, Odonil,
Babool, Meswak, Lal Dant Manjan, Pudin
Hara, Nature Care and so on. Investment
continues in brands, apart from focusing on
expanding the geographical reach.
The revenue segments in the domestic
market are foods (revenue contribution
21%), hair care (21%), oral care (16%), health
supplement (15%), OTC and ethicals (9%),
home care (8%), skincare (5%) and diges-
tives (5%). The domestic market is facing
slowdown. Competition from new entrant
Patanjali and, lately, demonetization had
added to its woes. The challenging situation
in the overseas markets of the Middle East
and Africa is another concern.
The domestic FMCG business contrib-
utes 63% and international business 34% to
revenues. Moderately leveraged, the debt-
to-equity ratio was 0.20 times end FY 2016.
Superior technology is one of the open
secrets of success reported by Astral Poly
Technik. Established in 1999, the first
Jan 30 Feb 12, 2017 CAPITAL MARKET
Stocks
(the largest manufacturer of sanitary ware
Though times in Central and Eastern Europe). Also, there
is presence in the adhesives, sealants, put-
Dabur Indias domestic market is facing ties and construction aids segments.
slowdown, competition from Patanjali
The network includes 750 distributors
and, lately, demonetization. The situation
in the overseas markets is challenging and 22,000 dealers across India. The installed
capacity was increased 25% to 1,27,762
325
tonnes in Y 2016. Capacity utilization was
Face Value: Re 1 Dabur India
at 61%. A CPVC and PVC pipes and fitting
300
plant is being set up at Ghiloth in Rajasthan.
275
Conclusion
FMCG major Hindustan Unilever (HUL)
250
reported 4% decline in volumes in the De-
xxxxx cember 2016 quarter over a year ago. The
225
F M A M J J A S O N D J result is a combination of the adverse effect
2017
of demonization and economic slowdown.
Current market price Rs 277 as on 23 January 2017. One-year
return: 10.66%. S&P BSE Sensex one-year return: 12.35%. The economy has been growing at around
7% per annum for the last three fiscals on
licencee of Lubrizol of US, a fortune 500 one hand and the stock market is moving in a
company, has the distinction of manufac- narrow range on the other hand. No wonder,
turing and marketing the most advanced investors are confused.
chlorinated polyvinyl chloride (CPVC) The software and pharmaceutical indus-
plumbing system for the first time in India. tries will be the obvious victims of any pro-
The CPVC plumbing systems are used tectionist policies of the US President
in residential and industrial applications and Donald Trump. Sans administrative experi-
lead-free PVC plumbing systems. Facilities ence and expertise, his comments across the
are located at Ahmedabad and Dholka in issues, be it on international trade or poli-
Gujarat and Hosur in Tamil Nadu manufac- tics, are adding to investors anxieties. Next,
ture plumbing systems from to 12" and Brexit is likely to unfold in the current CY.
drainage systems with all kinds of neces- This event can drastically alter settled equa-
sary fittings. tions and, thus, needs to be monitored.
Global partnerships include Spears of The NDA government is in no mood to
the US (to make injection molded fittings accommodate the opposition. The same
and fabricated fittings, manual and mechani- could be said of the opposition as well. As a
cally actuated thermoplastic valves), First result, the legislative business is taking a hit.
Plast of Italy (drainage channels, ground ac- This is an opportunity loss for the country.
cessories, rainwater gutter and solvent ce- Foreign portfolio investors emerged as net
ment fittings made of PVC) and AlcaPlast sellers last CY. Will they continue to be so
in CY 2017 considering the appreciating
dollar, rising yields in the US and falling
Cranking up output yields in the domestic market?
The installed capacity of Astral Poly Ironically, the adverse situation offers
Technik was increased 25% to 1,27,762 opportunities. The time is ripe to build long-
tonnes in CY 2016. Capacity utilization term portfolio by picking quality stocks. The
was at 61% shortlisted companies should be seen against
550
this backdrop. The companies have displayed
Astral Poly Technik Face Value: Re 1 a consistent pattern in the quality of their
500 management and operations. Based on the
risk-reward equation and tenure of invest-
450
ment, investors can explore these stocks.
400 Though companies with common char-
acteristics have been identified, they boost
350
of many unique attributes, too. Many of
xxxxx them have several strong brands and at
300
F M A M J J A S O N D J
2017 the same time are cash-rich with healthy
Current market price Rs 381 as on 23 January 2017. One-year balance sheets.
return: -6.95%. S&P BSE Sensex one-year return: 12.35%. Venkatesh S
13
InFocus
InFocus
Housing Finance Companies housing loan market. The subdued banking
credit growth and weak corporate credit de-

Winners and losers

mand may also increase the competitive in-
tensity in the housing loan segment. Reduc-
tion in lending rates will spur demand for
Lower interest rates and credit subsidy to drive loan growth, refinancing of existing loans, especially in
the prime salaried segment.
but rivalry with banks a cause of concern for the margins State Bank of India (SBI) cut its one-
year benchmark marginal cost of funds-based
Post demonetization, various banking and non-
lending rate (MCLR) by 90 basis points
banking lenders have sharply reduced lending
(bps), bringing down its home loan rate to
rates beginning of calendar year (CY) 2017.
8.6% from 9.1% for women borrowers and
The steep surge in liquidity, decline in money
to 8.65% for others. Following SBIs example,
market interest rates, and subdued loan growth
various lenders too cut interest rates, effec-
facilitated the sharp reduction of lending rates.
tively setting off a price war among key lend-
Decline in interest rates by banks is a positive
ers in the home loan market. Bank of Baroda
for housing finance companies (HFCs) as it
has aggressively slashed interest rates to the
helps to lower the cost of funds on repricing
lowest level for home loans starting at 8.35%,
of portion of their liabilities. The recent re-
though the offer is available only to custom-
duction in home loan rates is likely to improve
ers with a high credit scores. Home loan rates
the affordability of borrowers and could po-
have eased in the range of 8.5%-8.7% after
tentially boost demand. Focus on affordable housing the recent reduction from 9.1-9.3% earlier.
The housing finance market has exhib-
The demand for loans has continued to The lending rate cuts will cause pres-
ited strong growth momentum. Banks home
be strong in the system, despite higher home sure on yields of HFCs, with the new loan
loans book has consistently maintained high
loan rates so far. The softening of lending book getting built at lower spreads, while
loan growth in the range of 15% to 20% since
rates of late can accelerate home loan de- the higher yielding book will witness pre-
the last four fiscals. Housing finance compa-
mand. Real-estate developers are yet to an- payment pressure and hit overall yields. The
nies (HFCs) have even exhibited stronger
nounce big discounts. However, there is some margins are also exposed to regulatory risk
home loan growth than the banking sector.
a decline in prices in some pockets of the of loan pricing to a more transparently cal-
Their financial performance in the December
country after demonetization. Meanwhile, culated base rate. The impact on spreads for
quarter reflected the trend. Can Fin Homess
fall in the share of cash transactions and spurt smaller HFCs will be much higher. Smaller
loan book increased 28% and Dewan Hous-
in the share of banking channels in buying HFCs are likely to get further hit on account
ing Finances 17% end December 2016 over
and selling of property will benefit lenders of their relatively higher operating cost ra-
December 2015.The loan growth for
in boosting their loan book. tios. The higher share of fixed rate liabilities
Indiabulls Housing Finance was even stron-
However, a low-rate environment will and floating rate assets can also affect the
ger at 31%, while LIC Housing Finance at
lead to heightened rivalry and rate war among margins in the medium term. HFCs failing
15% and Gruh Finance at 19% also reported
home loan lenders in the highly competitive to match the interest rates being offered by
healthy loan growth end December 2016.
banks and other HFCs can experience some
Ahead of competition prepayments.
The lower loan rates are applicable for
HFCs have exhibited stronger home loan growth than the banking sector as evident new loans and loans linked to MCLR, help-
from their financial performance in the December 2016 quarter ing to mitigate the large impact on the mar-
CHG IN TTM % TTM PROMOTOR CHG(%) MCAP OVER gins. Reduction in base rates has been negli-
MCAP CMP NET SALES PAT P/E HOLDING % 1-MONTH 1-YEAR gible as against cut in MCLR. SBIs MCLR
H D F C* 199523.07 1258.75 14.0 21.7 17.9 0.0 1.7 11.3 is down 90 bps, while it has increased the
spread on home loans. Hence, the effective
Indiabulls HF 31993.1 755 27.3 23.5 11.6 24.2 17.8 10.2
cut in the home loans will be 35-50 bps.
LIC HF 26516.83 525.45 13.7 16.3 14.3 40.3 -3.6 14.3
Lenders might also try to retain borrowers
PNB HF* 13735.06 829.2 106.9 118.2 37.4 39.1 -3.1 NA
by giving them an option to shift to lower
GRUH Finance 12040.65 330.85 18.4 19.2 43.9 58.6 4.5 40.4 interest rate by paying a fee.
Dewan HF 8578.08 273.95 22.0 23.7 9.9 39.3 15.6 60.4 With the asset quality of the HFCs at the
Can Fin Homes 4538.62 1704.95 26.8 59.8 21.4 44.1 2.2 93.8 bottom of the cycle, the rising share of devel-
Repco HF* 3957.32 632.55 24.3 23.1 23.8 37.1 23.6 6.5 oper loans, loan-against-property (LAP) and
GIC HF 1529.61 284.05 15.2 18.8 11.2 42.2 10.5 43.0 non-salaried borrowers is emerging as a ma-
CMP: Current market price as on 23 January 2017. TTM ended September /December 2016. Change in TTM net sales jor asset quality concern. Subdued real estate
and PAT is over net sales and PAT ended September/December 2015. Promotor holding as on 31 December. Loan prices are a significant risk to loans for homes
Growth as of September/ December 2016. NA: Listed on 7 November 2016. * data for period ended September 2016.
Source: Capitaline Database
that are under construction. Despite all-time
high inventory levels and weak demand, the

14 Jan 30 Feb 12, 2017 CAPITAL MARKET

InFocus
high-end property prices have been on hold
as developers have refrained from reducing
prices noticeably. Further, the crackdown on
black money is expected to put pressure on
real estate prices, increasing the chances of
loan defaults.
Infrastructure status for affordable hous-
ing is a major expectation from the Union
Budget 2017-18. The government might in-
clude low-cost or affordable housing in the
infrastructure sector in the coming Budget, a
move that will reduce costs for developers
and attract investors. If affordable housing is
given infrastructure status, it will lower the
borrowing cost of developers. It will augment
resource allocation for the sector and, in turn,
revive housing supply and reduce the huge
demand backlog. A higher personal income-
tax rebate for housing, and a national saving
instrument for dwelling units will all shore
up effective demand for housing loans.
LIC Housing Finance maintained a
healthy loan growth with stable asset quality
in the quarter ended December 2016 over a
year ago. It will continue to focus on the re-
tail business. Lots of initiatives have been
launched in the affordable housing segment.
Expectation of rates to come down post de-
monetization have generated strong pent-up
demand for loans translating into strong
March 2017 and June 2017 quarters going
forward. Disbursement growth is expected
to be upwards of 15% in the March 2017
quarter. Asset quality continues to improve
and no stress is seen going forward. The loan
book growth is expected to be around 15% in
the fiscal ending March 2018 (FY2018).
Dewan Housing Finance fared reason-
ably well, except for some volatility in No-
vember 2016 post demonetization. The col-
lection efficiency, which saw a drop post
demonetization in November 2016, returned
to normal pre-demonetization levels of 97-
98% including December 2016. Collection
performance is expected to be stable in Q4
of FY2017. Although, the high- ticket loan
segment has been affected, the affordable
housing segment remained stable in Q3 of
FY2017, post demonetization. The loan
growth target is in the range of 16-18%.
Indiabulls Housing Finance continued to
post strong earnings growth, with robust loan
book growth of 31%, end December 2016.
The share of mortgage loans increased to 79%
from 76% at end December 2015. On the
other hand, the share of corporate mortgage
eased to 21% end December 2016 from 23%
end December 2015. The gross NPA ratio
16
New customer segment
The widened scope of Pradhan Mantri Awas Yojna to boost demand for housing finance
Housing finance companies (HFCs) are
in focus due to the recent measures
announced to boost affordable housing.
The Pradhan Mantri Awas Yojna
(PMAY) scheme offers home loans at
subsidized interest rate of 6.5% for loans
up to Rs 6 lakh for the economically
weaker section and lower income group.
Recently, two new middle income
categories have been created under
PMAY in urban areas. Loans up to Rs 9
lakh availed in the calendar year (CY)
2017 will receive an interest subvention
of 4%. Loans up to Rs 12 lakh taken in
CY 2017 will receive an interest
subvention of 3%.
This action is likely to expand the
eligible borrower base for the credit-
linked subsidy scheme and also improve
affordability of the borrowers owing to
lower equated monthly instalments
(EMIs). The measure will create a wider
set of borrowers with access to formal
credit channels, leading to higher growth
potential in the affordable housing
was stable at 0.85% end December 2016, with
the provision coverage ratio at 148%.
Gruh Finance continued to post healthy
performance, with improvement in the mar-
gins and asset quality in the December 2016
quarter. The loan book growth was healthy
at 19% over end December 2015. However,
there was 10% decline in the disbursement.
The net non-performing asset (NPA) ratio
dipped to nil from 0.29% end September
2016 and from 0.14% end December 2015.
There is a network of 183 branches spread
across 10 states.
Can Fin Homes did not feel the impact of
demonetization on its overall business, though
some moderation was witnessed in Novem-
ber 2016. The collection performance was
intact post demonetization as most of it is
done through electronic mode. The loan book
growth remained strong at 28%, driven by
robust 25% increase in disbursements. Fresh
approvals also jumped 24% in Q3 of FY2017
over a year ago. About 77% of the total loan
book was contributed by the salaried and
professional segment at end December 2016.
About 88% loans were to the housing seg-
ment and balance towards the non-housing
segment. In the housing finance segment, more
segment. But the extent of growth will
hinge on the supply of such houses.
The effective EMI of a borrower
reduces significantly if he is included
for capital subsidy. Further, the
minimum income levels required for
taking a higher loan amount also comes
down, which can expand the eligible
borrower base. Thus, there might be
increase in demand. Therefore, the
market potential for the affordable
housing segment will increase.
The housing finance industry and
banks lending to these segments will
benefit substantially as the subsidy
amount is directly credited to the loan
account of the borrower and is netted
off against the principal amount. Hence,
financing agencies do not have to worry
about subsidy collection. The average
ticket size of most of HFCs is still
higher than the slab announced by the
Union government. Yet, the new scheme
can bring in a new segment of custom-
ers for HFCs and banks.
than half of the book was in the affordable
housing segment. Asset quality continued to
be robust, with the gross NPA ratio at 0.24%
and the net NPA ratio at a negligible level of
0.01% end December 2016.
Conclusion
The developments in the post demonetiza-
tion era are beneficial as well as harmful for
HFCs. The surge in bank deposits and li-
quidity has led to decline in interest rates in
the system. Credit demand will take time to
pick up. But the lending rates cut should
restrict the moderation in credit growth.
Lower interest rates will prove beneficial
for the economy, particularly the housing
sector. Softer home loan rates, moderation
in real estate prices and government mea-
sures on affordable housing schemes will
drive demand for home loans going forward.
However, the competition from banks
in the housing loan market will intensify,
causing pressure on the margins of HFCs.
But the declining cost of borrowings and
gradual reduction in lending rates will help
HFCs to protect their margins, if not im-
prove going forward.
Vijay Ghutukade
Jan 30 Feb 12, 2017 CAPITAL MARKET
OverTheCounter
OverTheCounter
Bulk Deals: Indiastar (Mauritius) sold 9.30
Ticker trade
lakh shares of Global Offshore Services
Companies witnessing big-ticket transactions at Rs 55.21 per share in a bulk deal on the
NSE on 9 January 2017. It liquidated 8.30
52-WEEK VARIATION % EPS P/E OPM %
lakh shares at Rs 59.90 per share in a bulk
COMPANY CMP (Rs) HIGH LOW 15 DAYS 1 YEAR LAT. QTR TTM TTM LAT. TTM PRV. TTM deal on the NSE and offloaded 1.70 lakh
BF Utilities 373.1 643.7 363.95 -5.21 -26.86 1.38 1.84 202.77 306.56 352.22 shares at Rs 59.85 a piece in a bulk deal on
Cyient 466.95 555 370.5 -4.07 7.58 6.41 18.57 25.15 75.89 88.56 the BSE on 10 January 2017. It sold 6.12
Dr Reddys Labs 2946.4 3689 2750 -6.78 6.85 18.91 55.54 53.05 49.55 100.91 lakh shares at Rs 62.8 per share in a bulk
Electrosteel St. 6 6.62 2.42 63.04 98.02 -2.02 0 0 9.61 -28.8 deal on the BSE and six lakh shares at Rs
Global Offshore 68.25 354.8 51.1 17.47 -77.34 -1.42 6.65 10.26 146.95 224.75 62.85 per share in a bulk deal on the NSE on
Indag Rubber 179.85 229 145.6 -2.07 0.59 1.58 9.17 19.61 59.92 72.03 11 January 2017. Indiastar held 13.9% stake
Indiabulls Hous. 750.1 895 551 14.04 7.26 17.8 59.42 12.62 367.97 368.55 end December 2016. The deal constituted
IST 790 825 575 12.06 25.4 3.65 12.83 61.57 62.46 3.59 12.71% of the equity capital.
KNR Construct. 182.95 201.7 81.6 9.09 98.32 3.12 11.73 15.6 66.3 64.92 Oppenheimer Funds Inc A/C
Lak. Vilas Bank 138.15 168.7 77.95 1.28 56.46 4.37 13.21 10.46 291.64 297.71 Oppenheimer Global sold 6.29 lakh shares
Rana Sugars 11.06 17.67 3.2 -7.21 163.96 -1.28 1.86 5.95 109.48 40.51 of Cyient at Rs 494.05 per share in a bulk
RPP Infra Proj. 274.15 283.7 102.4 20.16 153.84 2.64 10.15 27.01 61.83 58.23 deal on the NSE on 12 January 2017.
Skipper 152.05 177.2 122 6.78 -5.32 2.21 8.91 17.07 56.33 61.25 Oppenheimer owned 4.07% stake end
Star Ferro Cem. 96.45 135 86.55 -2.58 -21.59 -0.01 0 0 NA NA December 2016. The deal constituted 0.56%
Sundaram Multi. 3.93 5.94 2.15 -12.67 47.19 0.06 0.19 20.68 -58.08 -40.51 of the equity capital.
Sunflag Iron 38.85 42.05 18.65 8.52 83.25 1.17 3.8 10.22 43.38 42.28 Cyients consolidated net profit
Vikas Ecotech 17.35 22.9 10.85 6.44 1.76 0.29 1.49 11.64 81.66 37.38 declined 3.17% to Rs 94.16 crore on 0.37%
Virinchi 79.65 94.8 29.45 11.55 106.08 0.7 2.38 33.47 58.83 53.56 growth in net sales to Rs 917.06 crore in
Vivimed Labs. 95.55 121.2 68 -1.65 20.37 0.21 0.93 102.74 100.34 100.53 the quarter ended December 2016 over the
Prv.: Previous. Lat.: Latest. CMP: Current market price as on 20 January 2017. sequential quarter. Managing Director and
EPS, P/E, OPM are all based on standalone numbers.
CEO Krishna Bodanapu said the
Whos selling, whos buying December 2016 quarter revenues and
margins were in line with expectations.

Promoter raises Dr Reddys stake
Indiastar (Mauritius) offloads Global Offshore Services
and Srei Infrastructure Finance buys into Lakshmi Vilas Bank
Insider deals: Major promoter Dr Reddys
Holdings hiked stake in Dr Reddys Labora-
tories (DRL) by rejig of promoter holding.
Satish Reddy Kallam sold 2.12 lakh shares to
Dr Reddys Holdings at Rs 3000 per share in
a block deal on the BSE on 13 January 2017.
Venkateswara Prasad Gunupati offloaded
2.12 lakh shares to Dr Reddys Holdings at
Rs 3000 a piece in a block deal on the BSE on
16 January 2017. Dr Reddys Holdings
owned 24.26%, Kallam held 0.92% and
Prasad 0.82% stake end September 2016. The
deal constituted 0.26% of the equity capital.
US President-elect Donald Trump said
in his first press conference held on 11
January 2017 that pharmaceutical companies
were getting away with murder with drug
pricing and promised a complete turnaround,
making healthcare less expensive and better.
He said that US is the largest buyer of drugs
in the world and, yet, the country does not
bid properly, prioritizing bringing back drug
industries back to the US.
Trump also said he would repeal and
replace Obamacare, the countrys existing
affordable healthcare legislation, shortly after
price approvals. The move could impact
Indian pharma exporters.
Major promoter Skipper Plastics sold
16 lakh shares of Skipper at Rs 142 per
share in a bulk deal on the BSE on 9 January
2017. Lifemake Agency offloaded 7.01 lakh
shares at Rs 142.05 a piece and Bonus Retails
liquidated 8.86 lakh shares at Rs 142.01 per
share in a bulk deal on the NSE. Skipper
Plastics owned 21.55% and Bonus Retails
held 1.13% equity end December 2016. The
deal constituted 3.11% of the equity capital.
Promoter entity Smridhi Realty and
Trade LLP sold 2.80 lakh shares of IST to
another promoter entity Delux Associates
Llp at Rs 765.30 per share in a block deal on
the BSE on 18 January 2017. Smridhi Realty
held 16.39% and Delux Associates owned
0.01% stake end September 2016. The deal
constituted 4.8% of the equity capital.
The company came off a very strong
quarter ended September 2016 and the
December 2016 quarter is a seasonally
weak quarter due to lower working days. It
is seeing significant traction in new
solutions such as analytics, where it had
some key wins. CFO Ajay Aggarwal said,
with cash balance of Rs 862 crore and strong
cash flow generations, the focus continues
on investments for growth. The thrust will
be on improving revenues, operating profit
and cash generation and, thus, maximizing
the value for the shareholders.
Tikri Investments bought 1.95 lakh
shares of Indag Rubber at Rs 177.99 per
share in a bulk deal on the BSE on 13 January
2017. The deal constituted 0.74% of the
equity capital.
Indag Rubbers net profit fell 45.8% to
Rs 4.15 crore on 27.6% decline in net sales
to Rs 45.01 crore in the quarter ended
December 2016 over the corresponding
previous quarter. CEO K K Kapur said due
to focus on cost improvement, earnings
before interest, tax, depreciation and
amortization (Ebitda) margins of 18.5%
could be maintained in the first nine month
of the fiscal ending March 2017 (FY 2017).
The effort will be to boost efficiency of

Jan 30 Feb 12, 2017 CAPITAL MARKET 17

OverTheCounter
operations and expand the product portfolio
along with building a strong after sales service At stake
network to enhance performing going ahead. Fluctuations in the holdings of big-ticket investors
Indag Rubbers board on 12 January
2017 approved investment of US$1.8 million QUARTERLY HOLDING %
in cumulative compulsorily convertible 31 DEC 2016 30 SEPT 2016 30-JUN-16 31-MAR-16
preference shares of SRL 142 Holdings COMPANY PROMO INSTITU. PROMO INSTITU. PROMO. INSTITU. PROMO. INSTITU.
(Jersey), bearing a 12% coupon and BF Utilities 56.44 8.61 65.64 1.17 65.64 1.12 65.64 0.7
convertible into common equity. Promoter
Cyient 22.18 64.64 22.19 64.61 22.19 64.49 22.2 64.63
Nand Khemka and family members have
Dr Reddys Labs 26.68 43.64 26.37 41.16 25.58 42.02 25.57 43.5
controlling interest in SRL 142 Holdings.
About 3.3% stake of SRL 142 Holdings will Electrosteel St. 45.23 29.63 45.23 29.68 45.23 29.68 45.23 29.65
be acquired via the latest investment. The Global Offshore 32.96 6.26 32.96 6.74 32.98 7.14 32.98 7.31
acquisition will be in cash. The indicative Indag Rubber 74.75 0.99 74.75 0.99 74.75 1.01 74.75 0.71
time period for the completion of the Indiabulls Hous. 24.05 62.79 24.15 63.56 24.18 61.25 24.19 60.63
acquisition is three months. This is a IST 74.99 0.01 74.99 0.01 74.99 0.01 74.99 0.01
portfolio investment on which the return KNR Construct. 58.09 31.36 58.09 31.41 60.75 27.73 60.75 27.93
will be 12% in US dollars. SRL 142 Holdings
Lak. Vilas Bank 9.65 9.13 9.65 6.36 9.66 8.06 9.66 7.91
has made investment in oil and gas project
Rana Sugars 22.65 2.15 22.64 1.81 22.64 1.68 22.64 1.68
at Nigeria. Its turnover in the calendar year
2016 was US$2.8 million. RPP Infra Proj. 72.42 2.18 72.42 2.21 72.42 2.57 72.42 2.39
Buddhisagar Shares and Services bought Skipper 72.37 8.39 72.37 4.6 72.37 3.14 72.37 3.35
19 lakh shares of Sundaram Multi Pap at Star Ferro Cem. 64.42 1.86 64.42 1.88 66.65 0.12 66.64 0.12
Rs 3.95 per share in a bulk deal on the NSE Sundaram Multi. 28.28 13.62 28.28 16.34 32.21 4.7 32.21 4.7
on 20 January 2017. Dinesh B Shah HUF Sunflag Iron 49.06 0.19 49.06 0.13 49.06 0.1 49.06 0.1
two sold 13 lakh shares at Rs 4 a piece. The
Vikas Ecotech 43.51 0.34 46.01 0.48 46.01 0.2 40.95 0.01
deal constituted 0.77% of the equity capital.
Virinchi 27.28 0.45 27.28 0.47 27.28 0 27.28 0
Sundaram Multi Pap, a market leader in
the field of paper stationary products, at Vivimed Labs. 36.48 3.36 37.23 2.87 36.79 2.62 36.82 3.16
the beginning of this month announced that Institutional holding in % including both FIIs and domestic institutions.

it had successfully achieved its objective by

reducing the debt of Rs 45 crore by December
2016. This bullet payment was for the
restructured debt undertaken in September
2014. The reduction of the debt in a short
span of time has reduced the interest burden
and will be reflected in the next fiscal, when
interest burden of about Rs 5 crore is planned
to be reduced and will result in a turnaround
in the business operations. The company
has also recognized the non-core assets,
paper mill at Nagpur and land parcel at
Palghar, to be liquidated. The proceeds will
be utilized for reducing the debt as well as
for the further expansion.
Sundaram Multi Paps wholly-owned
subsidiary company E-class Education
System undertakes digital education content.
The business has a huge potential to the
Union governments Digital India initiative.
Swiss Finance Corporation (Mauritius)
sold 16.06 lakh shares of Indiabulls
Housing Finance (IBHFL) to Societe
Generale at Rs 688.75 per share in a block
deal on the BSE on 11 January 2017. Swiss
Finance held 1.5% equity end December
2016. The deal constituted 0.38% of the
equity capital.
IBHFLs consolidated net profit rose finance companies (NBFCs) for higher loan
24.74% to Rs 751.49 crore on 30.19% amount might wane amid property
growth in total income to Rs 3004.47 crore valuations coming off.
in the quarter ended December 2016 over However, on the brighter side, the
the corresponding previous quarter. housing finance market might expand as the
Post demonetization of higher value income disclosures will go up and the
notes, aggressive pricing of home loans by secondary market, which was
banks can result in a shift of home loans predominantly cash, will now go through
from housing finance companies (HFCs) to the white economy, enabling banks and
banks. Besides, the attraction of non-banking bigger HFCs to capture a bigger share. The
ability to assess cash income and a high-
Taking a bite risk appetite are key growth factors for
NBFCs going forward. Some categories of
Sagar Constructions bought 20 lakh
borrowers whose disclosed income has
shares of Vikas EcoTech at Rs 16.25
per share constituting 0.79% of the risen after the note ban might become eligible
equity capital for bank loans.
22 Rating agency Icra said in a report that
Face Value: Re 1
20
given that around 60% of the borrowings
for HFCs are at fixed rates of interest and
18
Vikas Ecotech the assets are largely on floating rate, they
16
are likely to get affected more on account of
14 their relatively higher operating cost ratios.
12 Srei Infrastructure Finance bought 10.37
10 l l l l l l l l l l l l l l
lakh shares of Lakshmi Vilas Bank (LVB)
F M A M J J A S O N D J'17
at Rs 141.84 per share in a bulk deal on the
Current market price Rs 17.35 as on 20 January 2017. One BSE on 11 January 2017. The deal
year return: 1.76%. S&P BSE Sensex one-year return: 12.35%
constituted 0.54% of the equity capital.

18 Jan 30 Feb 12, 2017 CAPITAL MARKET

OverTheCounter

LVBs net profit rose 70.1% to Rs 78.38

Capital change
crore on 21.6% growth in total income to Rs
879.26 crore in the quarter ended December Stake ownership affected by big deals
2016 over the corresponding previous VOLUME
quarter. The gross non-performing asset
CMP DEAL EQTY CAP. CHNG HAND FORTNIGHT YEARLY
(NPA) ratio to gross advances stood at
2.78% as on 31 December 2016 compared COMPANY (Rs) PRICE (Rs) (%) VOLUME BSE NSE BSE NSE
with 2.7% on 30 September 2016 and 1.82% BF Utilities 373.1 400.39 0.55 206000 120506 465983 169805 614299
on 31 December 2015. The net NPA-to-net Cyient 466.95 494.05 0.56 629000 20011 214320 8624 78694
advances ratio stood at 1.82% compared Dr Reddys Labs 2946.4 3000 0.26 424000 64745 270791 33716 362882
with 1.87% and 0.8%. The return on average Electrosteel St. 6 4 0.88 21100000 2388155 11482690 816817 2204498
assets stood at 0.98% in the December 2016
Global Offshore 68.25 55.21 12.71 3142000 320896 928426 40861 123727
quarter compared with 0.7% a year ago.
Return on equity (ROE) stood at 18.18% Indag Rubber 179.85 177.99 0.74 195000 55628 0 16036 0
compared to 11.64% a year ago. Indiabulls Hous. 750.1 688.75 0.38 1606000 259118 1869657 148247 1705918
Sagar Constructions bought 20 lakh shares IST 790 765.3 4.80 280000 40160 0 4480 0
of Vikas EcoTech at Rs 16.25 per share in a KNR Construct. 182.95 170.52 2.63 3692000 409008 141485 23977 23394
bulk deal on the NSE on 9 January 2017. The Lak. Vilas Bank 138.15 141.84 0.54 1037000 194856 549343 87479 531721
deal constituted 0.79% of the equity capital. Rana Sugars 11.06 11.71 0.55 847000 323297 1724337 576107 2106361
Vikas EcoTech on 16 January 2017
RPP Infra Proj. 274.15 231.19 0.53 120000 257549 652228 78143 164919
announced it will issue two crore new shares
Skipper 152.05 142 3.11 3187000 315974 596879 42126 120273
to Prince Pipes & Fittings Chairman Jayant
Cheeda on preferential basis. After this Star Ferro Cem. 96.45 97 0.25 550000 3526 17956 10834 78748
allotment, Chhedas stake in the company Sundaram Multi. 3.93 3.95 0.77 1900000 417297 2947486 291569 936633
will exceed 8%. He already owns 1.26% of Sunflag Iron 38.85 40.88 0.57 1022000 211586 1047514 113775 350758
the share capital through an investment made Vikas Ecotech 17.35 16.25 0.79 2000000 912124 3550578 820309 3288679
in July 2016. The present transaction is being Virinchi 79.65 71.33 1.44 259000 251771 0 71927 0
executed in his personal capacity. Prince Vivimed Labs. 95.55 98.1 0.62 500000 219987 942838 117772 410353
Pipes & Fittings is a long-term and strategic
Eqty cap. chng hand: Equity capital change hand. * CMP: Current market price as on 20 January 2017.
customer of Vikas EcoTech.
As much as Rs 34 crore will be utilized a debt recast by the Ministry of Finance. Errol Fernandes bought 10.22 lakh
for expansion of Vikas EcoTechs R&D Reeling under a huge debt burden of Rs shares of Sunflag Iron & Steel at Rs 40.88
facilities, setting up new manufacturing plants 50000 crore, the sugar industry has asked per share in a bulk deal on the NSE on 11
and strengthening the marketing efforts in the the government to restructure debt and January 2017. The deal constituted 0.57%
both domestic and export markets. extend interest subvention on soft loans for of the equity capital.
Nylim Jacob Ballas India Fund III Llc another three years. Despite recent Magic Share Traders sold 2.59 lakh
sold five lakh shares of Vivimed Labs at Rs improvement in sugar prices, it is still not shares of Virinchi to Fortune
98.10 per share in a bulk deal on the NSE on sufficient to enable the industry to service Investment at Rs 71.33 a piece in a bulk
11 January 2017. Nylim Jacob Ballas owned all its debt at the same time. deal on the BSE on 9 January 2017. Magic
3.15% equity end December 2016. The deal Starbridge Finance sold 1.20 crore shares Share held 1.45% equity capital end
constituted 0.62% of the equity capital. of Electrosteel Steels at Rs 4 per share in December 2016. The deal constituted
Vivimed Labs board on 12 January 2017 a bulk deal on the NSE on 13 January 2017. 1.44% of the equity capital.
approved issue up to 1.25 crore warrants to Sudha Apparels sold 91.64 lakh shares to Copthall Mauritius Investment sold
promoters, non-promoters and other Jindal Drilling & Industries at Rs 4.10 a piece 36.92 lakh shares of KNR Constructions
strategic investors. The warrants will be in block deal on the NSE on 16 January 2017. at Rs 170.52 per share in a bulk deal on the
convertible into equivalent number of equity Starbridge held 1.01% stake end December BSE on 16 January 2017. HSBC Global
shares. The board approved to raise capital 2016. The deal constituted 0.88% of the Investment Funds bought 36.41 lakh shares
through various means up to an amount of equity capital. at Rs 170.5 a piece. Copthall held 2.85%
not exceeding Rs 500 crore or equivalent El Dorado Biotech sold 1.20 lakh shares end December 2016. The deal constituted
amount in any foreign currency. of RPP Infra Projects at Rs 231.19 per 2.63% of the equity capital.
Kumar Mangalam Lamboria sold 8.47 share in a bulk deal on the NSE on 13 January Subham Capital sold 5.50 lakh shares of
lakh shares of Rana Sugars at Rs 11.71 per 2017. The deal constituted 0.53% of the Star Ferro & Cement to Sheetij Agarwal
share in a bulk deal on the NSE on 9 January equity capital. at Rs 97 per share in a block deal on the NSE
2017. The deal constituted 0.55% of the IFCI sold 2.06 lakh shares of BF Utilities on 18 January 2017. Subham owned 1.77%
equity capital. at Rs 400.39 per share in a bulk deal on the and Agarwal 2.91% stake end December
Sugar stocks have witnessed a rally in NSE on 12 January 2017. IFCI owned 2.95% 2016. The deal constituted 0.25% of the
the recent past on hopes of an increase in stake end December 2016. The deal equity capital.
mills profitability, following indications of constituted 0.55% of the equity capital. Compiled by Chaitanya Nallani

Jan 30 Feb 12, 2017 CAPITAL MARKET 19

MarketWatch
MarketWatch

Movers and shakers

Movements in large-cap stocks* as on 20 January 2017
COMPANY (FV) MCAP LATEST FORT 1-YEAR FII RESERVES DIV DEBT/ P/E P/BV ROCE ROE
SECTOR (Rs cr) CLOSE (Rs) VAR (%) STAKE (%) (Rs cr) YLD (%) EQUITY RATIO (%) (%)
Suzlon Energy (Rs 2) 8717 17 15 -8 12 -389 0 22 13 29 8 9
Capital Goods The Gujarat-based wind turbine maker achieved 10,000 megawatts (MW) cumulative wind energy
Beta:1.431 installations in India (over 7,500 wind turbines installed pan-India), capable of powering over five
million households per annum and offsets approximately 21.5 million tonnes of carbon-dioxide emis-
sion annually (equivalent to planting over 1500 million trees). The operator with cumulative wind
energy installations of over 15,500 MW worldwide has presence across 17 countries and over 1,700
customers across the globe.

Havells India (Re 1) 25097 402 12 40 26 2582 1 0 41 8 29 23

Capital Goods
The New Delhi-based fast moving electrical goods manufacturer will foray into electronic personal
Beta:1.0693
care category. Personal grooming products will be the first of the lot to be launched within a couple of
months. The portfolio will include shavers, trimmers, epilators, hair straighteners and other beauty
and personal-grooming products.

KRBL (Re 1) 8110 345 11 52 6 1562 1 1 24 5 20 26

FMCG
Beta:0.8529 Shares of the Delhi-based basmati rice producer rallied on expectation of higher realisations due to
lower production volume and stable global demand. Iran, among the leading importers of basmati rice
from India, is likely to soon start issuing new licenses for the import of the premium grain.

Vakrangee (Re 1) 16057 303 10 83 13 1489 0 0 35 9 38 28

IT - Software
The Mumbai-based retail access points achieved a long-term debt free status through early repay-
Beta:0.4896
ments of all the outstanding long-term credit facilities sanctioned to it in line with the long-term growth
strategy (Vision 2020).

Dewan Housing Finance (Rs 10) 8526 272 10 49 26 4600 3 11 10 1 11 15

Finance
Net profit of the Mumbai-based housing finance provider improved 31.7% to Rs 244.77 crore on
Beta:1.8436
25.5% incline in operating income to Rs 2366.53 crore in Q3 December 2016 over Q3 December 2015.

ABB India (Rs 2) 24001 1133 10 13 4 2966 0 0 67 8 17 10

Capital Goods - Electrical The Bengaluru-based power and automation technology company won Rs 4350-crore contract from
Equipment national electricity grid operator Power Grid Corporation of India to build 1,830-km transmission
Beta:0.5456 link. The Raigarh-Pugalur 800-kilovolt (kV) ultra high-voltage direct current system will connect
Raigarh in Chhattisgarh to Pugalur in Tamil Nadu. The total project value is worth more than Rs 5700
crore and the balance will be executed by consortium partner Bharat Heavy Electricals. The order was
booked in the fourth quarter of the calendar year (CY) 2016. This mega project is expected to be
completed in CY 2019.

Tata Steel (Rs 10) 44151 455 8 96 13 69505 2 0 19 1 5 5

Steel
Beta:1.6399 Total sales of the Mumbai-based steel major jumped 27.45% to 29.94 lakh tonne in Q3 December
2016 over Q3 December 2015. The growth was enabled by higher sales in the automotive segment,
branded products and value-added products and scaling up of sales in new segments.

20 Jan 30 Feb 12, 2017 CAPITAL MARKET

MarketWatch

COMPANY (FV) MCAP LATEST FORT 1-YEAR FII RESERVES DIV DEBT/ P/E P/BV ROCE ROE
SECTOR (Rs cr) CLOSE (Rs) VAR (%) STAKE (%) (Rs cr) YLD (%) EQUITY RATIO (%) (%)
Rural Electrification Corp (Rs 10) 27086 137 8 54 18 27630 6 6 5 1 12 21

Finance The New Delhi-based state-run power sector financier incorporated three project specific special
Beta:1.2997 purpose vehicles as wholly-owned subsidiary companies of REC Transmission Projects Company.
They aree WR-NR Power Transmission, ERSS XXI and Transmission Ghatampur Transmission.

United Spirits (Rs 10) 30200 2078 7 -24 22 2662 0 2 147 16 9 8

Alcoholic Beverages Shares of the Bengaluru-based spirits maker spurted on media reports that Diageo Plc is considering
Beta:0.6212 increasing majority stake in Indian whiskey producer United Spirits. The British company is planning
an open offer. Relay BV, an indirect wholly-owned subsidiary of Diageo, held 54.78% stake on 31
December 2016. Under Indian stock market regulations, Diageo could raise its stake to just below 75%
without triggering a delisting offer. Diageo gained complete control of the board post the exit of Vijay
Mallya from his position as chairman and non-executive director in February 2016. The Indian
company, however, clarified to the bourses that it was not aware of this development and it does not
wish to comment on rumours.

Tata Motors (Rs 2) 167722 523 4 53 26 21689 0 1 0 7 3 -1

Automobile A foreign broker reportedly raised the target price on the shares of Mumbai-based auto major to Rs
Beta:1.7915 650 from Rs 585 earlier on likely significant improvement in both Jaguar Land Rover (JLR) and India
businesses. JLRs new model Discovery, to be launched in the second half of the current financial year,
and mid-sized Range Rover, to be introduced in the year ending 31 March 2018, are key products in
pipeline. Even benefits of significant pound depreciation will flow through into JLRs margin. The
sterling pound has depreciated 17% since January 2016. Meanwhile, the groups global wholesales
rose 4% to 95,081 units in December 2016 over December 2015. JLR reported 12% increase in total
retail sales to 55,375 units.

Gail (India) (Rs 10) 58331 460 4 35 15 29316 1 0 16 2 9 8

Gas Distribution The New Delhi-based state-run natural gas company scheduled a board meeting on 25 January 2017
Beta:0.8912 to consider issuance of bonus shares and fund raising by issuance of bonds on private placement basis.

NBCC (India)(Rs 2) 15504 258 4 47 4 1369 1 0 50 10 33 22

Realty
The New Delhi-based state-run construction major fixed 21 February 2017 as the record date for 1:2
Beta:1.0112
bonus issue of shares.

ITC (Rs 1) 309762 255 4 24 20 32124 2 0 31 8 47 31

Tobacco Products A foreign broker reiterated buy call on the shares of Indias largest cigarette maker by sales with a
Beta:1.0328 target price of Rs 290 a share after cigarette price hike. The rates of two of the mid-market cigarettes
were hiked up to 15% late December 2016.

Coal India (Rs 10) 191859 304 -1 2 7 9217 9 0 12 12 86 101

Mining & Mineral The board of directors of Central Coalfields, a subsidiary of the the Kolkata-based state-run coal major,
products approved revision of coking coal prices on 14 January 2017. Due to the revision, approximately addi-
Beta:0.7753 tional revenues of Rs 89.98 crore will be earned in the balance period of the financial year ending March
2017 (FY 2017) and Rs 222 crore in FY 2018, subject to achievement of production and dispatch target
norms. Further, the board of Bharat Coking Coal, a subsidiary, approved increase in prices of coking coal
prices, from 13 January 2017, of approximately 20% over the current price, while the price of steel grade
of coal and direct feed coal was linked to prices of washed coking coal, fixed on import parity price . Due
to the revision, additional revenue of Rs 702 crore will be earned in the balance period of FY 2017 and Rs
2986 crore in FY 2018 on achieving the targeted production and despatch programme.

Jan 30 Feb 12, 2017 CAPITAL MARKET 21

MarketWatch

COMPANY (FV)
COMPANY (FV) MCAP
MCAP LATEST
LATEST FORT 1-YEAR
FORT 1-YEAR FII RESERVES
FII RESERVES DIV
DIV DEBT/
DEBT/ P/E
P/E P/BV
P/BV ROCE ROE
ROCE ROE
SECTOR
SECTOR (Rs cr)
(Rs cr) CLOSE (Rs)
CLOSE (Rs) VAR (%)
VAR (%) STAKE (%)
STAKE (%) (Rs
(Rs cr)
cr) YLD
YLD (%)
(%) EQUITY
EQUITY RATIO
RATIO (%)
(%) (%)
(%)
TCS (Re 1) 450726 2287 -2 0 17 58670 2 0 19 7 55 44

IT - Software Consolidated net profit of the Mumbai-based IT company was up 2.9% to Rs 6778 crore on 1.5%
Beta:0.7481 incline in revenues to Rs 29735 crore in Q3 December 2016 over Q2 September 2016. Consolidated
revenue in constant currency grew 2%. Operating income increased 1.5% to Rs 7733 crore. The
growth was led by energy and utilities (up 5.8% sequentially), hi-tech (up 2.6% sequentially), BFSI
(up 2.1% sequentially), manufacturing (up 2.1% sequentially) and retail (up 1.9% sequentially) in
constant currency.

Infosys (Rs 5) 217934 949 -5 -15 40 56009 3 0 16 3 34 26

The Bangalore-based IT major trimmed its the revenue-growth guidance in dollar terms for the
IT - Software current financial year at the time of announcing Q3 December 2016 results on 13 January 2017.
Beta:0.7699 Dollar revenues are expected to grow between 7.2% and 7.6%, down from the earlier expectation
of growing between 7.5% and 8.5% in the current financial year ending 31 March 2017 (FY 2017).
The FY 2017 growth guidance has been reduced in dollar terms for the third straight time in the
current financial year. At the beginning of FY 2017, the dollar revenues were slated to grow
between 11.8 and 13.8%. In constant currency terms, revenues are likely to grow between 8.4%
and 8.8% as against the earlier projection of growing between 8% and 9% for the full year. In
constant currency terms, growth in revenues was forecast at 10.5%-12% in FY 2017 at the time
of announcing Q1 result on 15 July 2016. Consolidated net profit rose 2.8% to Rs 3708 crore
despite 0.2% fall in revenues to Rs 17273 crore in Q3 December 2016 over Q2 September 2016,
as per International Financial Reporting Standards. Consolidated net profit increased 1.5% to
US$547 million despite 1.4% decline in revenues to US$2551 million in Q3 December 2016 over
Q2 September 2016. As many as 77 clients were added in Q3 December 2016. These included two
clients in the US$75 million-plus revenue category. Liquid assets including cash and cash equiva-
lents and investments were Rs 35697 crore compared with Rs 35640 crore on 30 September 2016
and Rs 31526 crore on 31 December 2015.

Reliance Industries (Rs 10) 332719 1026 -5 2 21 236936 1 0 11 1 11 12

Refineries Consolidated net profit of the Mumbai-based diversified private sector company was up 3.6% to Rs
Beta:0.7737 7506 crore on 16.1% increase in turnover to Rs 84189 crore in Q3 December 2016 over Q3 December
2015. Consolidated profit before depreciation, interest, and taxes rose 3.9% to Rs 14215 crore. Profit
before tax jumped 3.7% to Rs 10213 crore. Cash profit increased 2.3% to Rs 10586 crore. The increase
in revenues was primarily on account of rise in prices of refining and petrochemical products due to
the 13% spurt in Brent crude prices. Turnover was also boosted by robust growth of the retail
business. Other income rose 12.13% to Rs 2736 crore, primarily due to higher profit on sale of
investments partially offset by lower interest income. Revenues from the refining and marketing
segment inclined 7.5% to Rs 61693 crore. The segments earnings before interest and tax fell 4.3% to
Rs 6194 crore (US$912 million) on account of lower volumes and decl1ine in the gross refining mar-
gins (GRMs). Standalone GRM was US$10.80 a barrel (bbl) as against US$11.5 a bbl. The GRMs
outperformed the Singapore complex margins by US$ 4.1 a bbl. The Jamnagar refineries processed
17.8 million tonnes, marginally lower over Q2 September 2016. As many as 1,151 petroleum retail
outlets were operational in the country end December 2016.

Divis Laboratories (Rs 2) 18953 714 -7 -33 20 4297 1 0 17 4 34 28

Pharmaceuticals The Hyderabad-based pharmaceutical producer filed a detailed response within the permitted
Beta:0.7258 time to the observations made by the US health regulator after inspection of the manufacturing
plant at Visakhapatnam in Andhra Pradesh. The Food and Drug Administrator inspected the unit-
2 plant from 29 November 2016 to 6 December 2016 and issued Form 483 with five observations
relating to breaches in data integrity, improper controls and violations of current good manufac-
turing practices.

22 Jan 30 Feb 12, 2017 CAPITAL MARKET

MarketWatch

COMPANY (FV) MCAP LATEST FORT 1-YEAR FII CASA DIV P/BV NIMs NON-INT. NET NPAs
SECTOR (Rs cr) CLOSE (Rs) VAR (%) STAKE (%) (%) YLD (%) (%) (%) (%)

Federal Bank** (Rs 2) 13427 78 15 64 26 35 1 0 3 25 2

Banks
Net profit of the Kerala-based private sector bank rose 26.4% to Rs 205.65 crore on 22% increase in
Beta:1.3112
operating income to Rs 2544.75 crore in Q3 December 2016 over Q3 December 2015.

Yes Bank** (Rs 10) 57493 1359 12 111 43 33 1 0 4 40 0

Banks Net profit of the Mumbai-based private sector bank spurted 30.62% to Rs 882.63 crore on 26.88%
Beta:1.3565 jump in total income to Rs 5229.96 crore in Q3 December 2016 over Q3 December 2015. The ratio of
gross non-performing assets (NPAs) to gross advances rose to 0.85% from 0.83% end September
2016 and 0.66% end December 2016. The ratio of net NPAs to net advances stood at 0.29% compared
with 0.29% and 0.22%. Provisions and contingencies dropped 22.01% to Rs 115.38 crore over Q3
December 2015. The provisioning coverage ratio stood at 66%. The current-account and savings-
account (Casa) ratio improved to 33.3% from 26.6%. Net interest income increased 30.3% to Rs
1507.50 crore on account of growth in advances and Casa and expansion in the net interest margins to
3.5% from 3.4% in Q3 December 2015. Non-interest income surged 33.8% to Rs 998.30 crore.

Punjab National Bank# (Rs 2) 27249 128 9 46 10 42 0 0 3 38 9

Banks The New Delhi-based state-run bank signed a memorandum of understanding with India Post Pay-
Beta:1.6311 ments Bank (IPPB) on 17 January 2017 to provide technology platform for the pilot launch of IPPB
on receipt of regulatory approval from the Reserve Bank of India.

IndusInd Bank** (Rs 10) 72984 1221 8 41 43 37 0 0 4 39 0

Banks Net profit of the Pune-based private sector bank was up 29.19% to Rs 750.64 crore on 22.86% growth
Beta:0.994 in total income to Rs 4716.13 crore in Q3 December 2016 over Q3 December 2015. The ratio of gross
non-performing assets (NPAs) to gross advances increased to 0.94% as against 0.9% on 30 September
2016 and 0.82% on 31 December 2015. The ratio of net NPAs to net advances stood at 1.88% as
against 1.93% and 1.92%. Provisions and contingencies (excluding tax provisions) increased 22.45%
to Rs 216.85 crore in Q3 December 2016 over Q3 December 2015.

State Bank of India# (Re 1) 194846 251 2 45 9 43 1 0 3 37 4

The Mumbai-based state-run bank received the Union governments approval to increase the paid up
Banks
capital through preferential allotment of equity shares for up to Rs 5681 crore to the government. They
Beta:1.5783
also gave an in-principle nod to additional fund raising by way of a public issue. Separately, the share-
holders also approved fund raising up to a limit of Rs 15000 crore via a public issue. Any such public
fund-raising will be subject to the condition that the governments shareholding does not fall below 52%.

Axis Bank** (Rs 2) 107739 451 -2 16 47 48 0 0 3 44 2

Banks Net profit of the Gujarat-based private sector bank dropped 73.35% to Rs 579.57 crore on 15.72%
Beta:1.2808 growth in total income to Rs 14501.21 crore in Q3 December 2016 over Q3 December 2015. The ratio
of gross non-performing assets (NPAs) to gross advances stood at 5.22% as against 4.17% on 30
September 2016 and 1.68% on 31 December 2015. The ratio of net NPAs to net advances stood at
2.18% compared with 2.02% and 0.75%. Provisions and contingencies jumped 432.67% to Rs 3795.80
crore in Q3 December 2016 over Q3 December 2015.
* On standalone basis. Only for stocks with market cap above Rs 8000 crore. Beta is a measure of a stock's volatility in relation to the key benchmark index. Higher the beta of the stock, higher
will be the volatility in the stock price and, hence, riskier the investments. The beta of the index or the market is pegged at 1. Dividend yield, return on equity (RoE) and return on capital employed
(RoCE) are for the year ended March 2016, except ABB India (December 2015). Debt-equity is of the latest financial year end and P/BV data is as on date. Current account, saving-account (Casa),
net interest margins (NIMs) and net non-performing assets (NPAs) as percentage of advances end September 2016. Non-Int: Non-interest income as % of net total income end September 2016.
** as on December 2016. # as on September 2016. .
Compiled by Abhishek Panchal

Jan 30 Feb 12, 2017 CAPITAL MARKET 23

MarketWatch

Economy data offer hope

rate for the first time in CY 2016 and In-
dian Prime Minister Narendra Modi an-
nounced the end of high-value bank notes
early November.
Mutual funds buying and slowing of selling by foreign Mutual funds continued to provide sup-
investors ahead of budget stem the slide port to the markets amid unabated selling by
FPIs. They bought shares worth Rs 2669.80
Key benchmark indices extended gains as crore in the month so far, Rs 9178.90 crore in
mutual funds continued mopping up stocks The parting shot December, Rs 13610.40 crore in November
and selling by foreign funds ebbed ahead of and Rs 9128.70 in October.
Capital outflows intensified end CY 2016 on
presentation of Union Budget 2017-18 early Donald Trumps election as US president,
The current P/E multiple of the Sensex
next month. Macroeconomic data showing US interest rate hikes and Narendra Modi stands at 21.07, as per data from the BSE.
a fall in consumer inflation in December, recalling high-value bank notes The P/E multiple of the BSE Small-Cap in-
rise in industrial production in November 8325
dex is 72.73 and that of the BSE Mid-Cap
and drop in trade deficit in December also index is 21.07.
provided support. However, investors were 8305 Crude oil futures for March 2017
NSE Nifty 200 SMA
wary of taking big positions ahead of US 8285
settlement ended at US$55.49 a barrel on
President-elect Donald Trumps inaugura- 20 January 2017, an increase of 0.25% in
tion on 20 January 2017. 8265 the month so far and 99% over the year as
The S&P BSE Sensex has risen 408.04 swelling oil stockpiles in the US and ris-
8245 l l l l l l l l l l l l
points, or 1.53%, in this month till 20 Janu- 23 Dec
2016
6 Jan
2017
23 Jan
2017
ing shale production are expected to
ary 2017. From a 52-week low of 22,494.61 threaten market rebalancing.
NSENifty 200-day simple moving average
on 29 February 2016, the barometer index is In the foreign exchange market, the
up 4,539.89 points, or 20.18%. From a 52- 2016, it is down 2,042.78 points, or 7.02%. partially convertible rupee settled at
week high of 29,077.28 on 8 September The benchmark is off 2,990.24 points or 68.1825 in the fortnight. It has lost 0.39%
9.95% from a record high of 30,024.74 on in the month so far and 0.34% over the
Domestic flavour 4 March 2015. year till 20 January 2017. The fall was
How the indices moved Selling of foreign portfolio investors hit by rising global bond yields and an
(FPIs) ebbed. They sold shares worth a net economic blow from governments dra-
VARI (%) Rs 3324.16 crore in the month so far (19 matic currency crackdown launched two
NAME 20-JAN-2017 PE 15 DAYS YEARLY January 2017), Rs 8960.36 crore in Decem- months ago. Capital outflows also
BSE Sensex 27034.5 21.07 1.03 12.35 ber, Rs 20116.27 crore in November and Rs weighed on sentiment.
Nifty 50 8349.35 20.08 1.28 14.23 5258.22 crore in October. Meanwhile, in a major relief to FPIs in
BSE 200 3612.43 23.28 1.6 17.12 The capital outflows had intensified India, the Central Board of Direct Taxes
end calendar year 2016 after Donald Trump on 17 January 2017 put in abeyance its 21
BSE 500 11388.54 24.68 1.69 17.85
won the US presidential election early No- December 2016 circular that amplified their
BSE Mid-Cap 12583.89 27.88 2.12 25.43
vember, the Federal Reserve hiked interest concerns over a potential rise in tax liabil-
BSE Small-Cap 12761.01 72.73 2.57 23.76 ity under Indias controversial in-
S&P BSE Metal 11435.98 -23.14 7.74 71.67 Inflows and outflows direct transfer provisions. The
S&P BSE Basic Mater 2525.44 -87.29 5.94 60.12 move signalled the governments
Net investment in equities by foreign portfolio intent to spare small overseas in-
S&P BSE Utilities 1874.33 18.77 5.10 25.39
investors and mutual funds vestors in FPIs registered in India
S&P BSE Power 2119.94 18.77 4.49 19.13
S&P BSE FMCG 8581.09 38.99 4.13 18.43 EQUITY FPIs (Rs cr) MFs (Rs cr) from paying taxes in India on re-
S&P BSE Finance 4220.75 23.00 3.15 21.78 EQUITY DEBT EQUITY DEBT demption of shares and units.
9/1/2017 -385.48 388.57 223 124.8
Meanwhile, in a significant
S&P BSE Bankex 21540.55 25.21 2.96 22.22 breakthrough on Goods & Ser-
S&P BSE Inds 3039.09 29.59 2.90 21.90 10/1/2017 -105.61 -1390.06 206.6 536.2
vices Tax (GST), the Centre and
S&P BSE Cons Dura 12171.96 69.08 2.56 3.49 11/1/2017 -678.2 -95.72 1048.3 41.2 the states reached a consensus on
S&P BSE CapGoods 14412.39 28.97 2.35 14.89 12/1/2017 -2.98 -639.33 307.2 2239.4 the contentious dual control is-
S&P BSE Auto 21398.09 23.27 1.90 26.68 13-01-2017 -103.3 -103.1 -101.8 -260.3 sue preparing ground for the
S&P BSE Oil&Gas 12639.26 15.17 1.50 39.31 16-01-2017 -338.46 -515.46 138.7 797.8 rollout of the biggest tax reform
17-01-2017 175.25 -400.94 -530.8 -643.4 from 1 July 2017.
S&P BSE Telecom 1153.24 41.53 0.05 -3.75
18-01-2017 336.58 -367.07 177.8 2622.3 The Central government will
S&P BSE Tech 5406.65 17.87 -0.24 -6.95
assess 50% of the tax payers under
S&P BSE Realty Index 1360.18 44.81 -0.24 14.92 19-01-2017 247.08 -257.49 573.7 1694
Rs 1.5 crore annual turnover and
S&P BSE IT Sector 9894.02 16.14 -0.45 -8.96 Total for fotnight -855.12 -3380.6 2042.7 7152
the states the other 50%. The
S&P BSE Energy 3027.49 16.48 -0.94 22.22 Jan17 (till 19) -3324.36 -4576.66 3243 25604.79 whole process of preparing the
S&P BSE Healthcare 14764.13 28.38 -1.24 -5.02 FPIs: Foreign portfolio investors. MFs: Mutual funds. draft laws and deciding the rate
slabs will need time till March,

24 Jan 30 Feb 12, 2017 CAPITAL MARKET

MarketWatch

In the limelight
BSE Large caps BSE Mid-caps BSE Small-caps
VARI (%) VARI (%) VARI (%)
NAME 20-JAN-17 PE 15 DAYS YEARLY NAME 20-JAN-17 PE 15 DAYS YEARLY NAME 20-JAN-17 PE 15 DAYS YEARLY
Gainers Gainers Gainers
Interglobe Aviat* 925.35 17.1 10.52 -25.04 Indiabulls Hous. 750.1 12.26 14.04 8.84 Electrosteel St.* 6 0 63.04 96.08
Yes Bank 1358.65 23.52 8.94 93.21 SAIL 58.25 0 12.24 40.87 Godawari Power 102.15 0 50.55 79.37
Hind.Zinc* 287.9 17.63 8.91 97.19 Indian Hotels 106.95 0 11.52 -1.93 Yamini Invest* 32.85 0 38.32 -26.35
United Spirits 2078 95.93 8.38 -28.21 Havells India 401.65 46.34 11.4 40.46 Oriental Veneer 268.1 40.13 38.02 -61.45
Tata Steel 454.6 0 8.32 69.31 UPL 732.9 24.95 11.12 96.22 Ruchi Soya Inds. 27.4 0 36.32 14.17
Shree Cement 15396.65 92.33 7.67 34.79 NLC India 87.85 15.19 9.33 20.51 Uttam Value Ste. 0.47 0 34.29 -68.46
Punjab Natl.Bank 128.05 0 7.47 16.46 3M India* 12310.35 62.23 8.88 25.15 Prakash Inds.* 68.5 19.57 33.4 146.85
Torrent Power 192.6 14.57 7.33 -13.73 Natl. Aluminium 70.75 23.61 8.76 105.37 Jubilant Inds. 385.2 0 33.17 131.63
Rural Elec.Corp. 137.15 5.07 6.94 20.43 A B B* 1132.6 66.9 8.5 13.3 Arshiya 40.1 0 33 10.62
IndusInd Bank 1220.55 32.84 6.68 29.32 Torrent Power 192.6 14.57 7.33 -6.46 MBL Infrast 53.4 0 33 -67.04
Losers Losers Losers
Oil India 327.65 13.4 -8.31 9.15 Rel. Comm. 31.2 17.61 -7.69 -54.45 Grandma Trading* 9.66 0 -17.93 -59.24
Dr Reddys Labs 2946.4 41.94 -6.78 -3.31 MRPL 101.15 25.56 -6.77 61.58 Esaar (India)* 0.67 0 -12.99 -49.24
Torrent Pharma. 1292.4 17.27 -6.06 -10.58 JSW Energy 61.35 8.46 -6.12 -11.85 TGB Banquets 63.55 0 -12.16 -20.36
Cadila Health. 359.25 24.98 -5.29 12.51 Torrent Pharma. 1292.4 17.27 -6.06 -1.37 STC 201.65 0 -11.73 55.96
Wockhardt 676.25 86.66 -4.85 -57.12 Wockhardt 676.25 86.66 -4.85 -43.58 NIIT 78.25 22.03 -11.68 -0.63
Reliance Inds. 1025.7 11.59 -4.38 -0.61 CRISIL 2146.15 48.56 -4.01 17.6 Indian Infotech* 0.16 4 -11.11 -38.46
CRISIL 2146.15 48.56 -4.01 8.59 Berger Paints 210.7 47.12 -4.01 18.51 Ujaas Energy 43.55 44.03 -10.85 90.59
Lupin 1461.8 23.39 -3.35 -16.67 Rajesh Exports 486.7 12.68 -3.49 -31.79 8K Miles 635 23.59 -10.48 -13.24
Divis Lab. 713.95 17.86 -3.19 -37.14 Emami 997.7 67.15 -3.38 -0.48 Ess Dee Alumin. 50.6 0 -9.4 -62.13
Petronet LNG 362.9 32.9 -2.88 36.04 Apollo Hospitals 1155.4 53.65 -3.37 -14.94 PC Jeweller 373.35 17.3 -9.14 4.04
* PE on standalone basis, others on consolidated basis * PE on standalone basis, others on consolidated basis * P/E on standalone basis, others on consolidated basis.
which makes 1 July rollout a more realistic Indias industrial production surged at
Commodity flow deadline than earlier 1 April. a 13-month high pace of 5.7% in Novem-
Monthly variation : 0.1%
Yearly variation : 77.1% The International Monetary Fund (IMF) ber 2016 over November 2015, snapping
Closing price (6 January 2017) : Rs 55.23 on 16 January 2017 cut Indias economic the 1.8% fall recorded in October 2016.
58 growth estimate for the fiscal ending March The manufacturing sectors production
Brent crude oil per barrel in US$
57
2017 (FY 2017) to 6.6% from its earlier pro- jumped 5.5%, while mining output re-
jection of 7.6% due to the impact of the bounded 3.9% after three months of de-
56
governments move to scrap some high value cline, contributing to the increase in indus-
55
currency notes in early November. trial production.
The agency raised Chinas GDP growth Meanwhile, the all-India monthly infla-
54
estimate for 2016-17 to 6.7% from the ear- tion based on the consumer price index
53 l l l l l l l l l l l l
lier 6.5%. If the projections are realised then (CPI) dipped to a 25-month low of 3.41%
23 Dec 6 Jan 23 Jan
2016 2017 2017 India risks losing the fastest growing major in December 2016 compared with 3.63% in
(+) Appreciation. (-) Depreciation
economy tag. The IMF expects Indias November 2016.
economy to recover and grow by 7.2% in As per preliminary reports received from
FY 2018, still slower than the previous esti- states, the total area sown under rabi crops
Exchange equation mate of 7.6%. It expects the Indian economy as on 20 January 2017 stands at 628.34 lakh
Monthly variation : 0.3% to grow by 7.7% in FY 2019. hectares compared with 592.36 lakh hectare
Yearly variation : +0.5%
Closing price (23 January 2017) : Rs 68.06 Inflation based on wholesale price in- this time in CY 2016.
67.7 dex (WPI) rose 3.39% in December 2016 The water storage available in 91 major
67.8 from 3.15% in November 2016. The build- reservoirs of the country for the week end-
67.9
up inflation rate in the financial year so far ing on 5 January 2017 was 89.348 BCM,
INR/USD
was 4.28% compared with a build-up rate which is 57% of total storage capacity of
68
of 0.4% in the corresponding period of the these reservoirs. This was 126% of the stor-
68.1 previous year. age of corresponding period of last year and
68.2 Indias exports rose 5.72% to US$23.88 98% of storage of the average of last 10 years.
68.3 l
billion and imports 0.46% to $34.25 billion The Cabinet Committee on Economic
l l l l l l l l l l l
23 Dec
2016
6 Jan
2017
23 Jan
2017
in December 2016 over December 2015. The Affairs (CCEA), chaired by Prime Minis-
(+) Appreciation. (-) Depreciation
trade deficit declined 9.9% to $10.37 billion ter Narendra Modi, approved the alterna-
in December 2016 over December 2015. tive mechanism to decide on the quantum

Jan 30 Feb 12, 2017 CAPITAL MARKET 25

MarketWatch

Taking off passengers ferried in the corresponding pre-

vious month, as per the data from the Direc-
STAKE TTM VAR torate General of Civil Aviation.
COMPANY ALL-TIME ALL-TIME 52-WEEK PROMO. FII SALES RPAT P/E P/BV There was a 13.6% growth in foreign tour-
HIGH-DATE HIGH(Rs) LOW(Rs) (%) (%) (%) (%) ist arrivals in December 2016 over the same
period in 2015. US accounts for highest share
BSE 500 companies hitting life-time highs in the fortnight ended 20 January 2017 of tourist arrivals followed by Bangladesh and
EID Parry 10-01-2017 291.7 150.3 45.25 9.76 10.34 -621.67 13.56 2.24
UK in December 2016. Around Rs 16805
Dhanuka Agritech 10-01-2017 796 484 74.99 0 13.56 19.38 30.56 6.66 crore of foreign exchange was earned through
Navneet Educat.* 11-01-2017 132.5 76.1 61.8 4.45 8.18 10.45 33.7 5.05 tourism in December 2016.
DCM Shriram 11-01-2017 287.9 107 63.87 1.5 -5.45 115.4 11.4 1.82 Moodys Investors Service says that the
JSW Steel 11-01-2017 195.45 95.1 41.55 20.31 -7.78 145.67 13.73 2.18 outlook for Asia Pacifics sovereigns is
Fortis Health. 11-01-2017 205 141.1 67.62 20.66 5.18 -169.57 0 2.08 stable in 2017, reflecting a mix of credit-
supportive increases in incomes and
MRF* 12-01-2017 55925 30464 27.52 9.74 0.11 3.45 14.24 3.19
strengthening institutions, and a credit-chal-
Bharat Electron* 12-01-2017 1568.9 1009 74.41 4.25 4.08 15.29 25.38 3.68
lenging external environment with slow glo-
H P C L* 12-01-2017 498.5 212 51.11 17.7 -8.81 72.14 10.61 2.94 bal trade and capital outflows. Moreover,
APL Apollo 12-01-2017 1088 557 38.75 0.54 15.16 101.34 17.41 3.69 political risk, although generally low, is be-
Biocon 12-01-2017 1052.05 430.8 60.68 16.96 17.24 84.05 37.63 4.4 coming increasingly unpredictable.
AIA Engg. 12-01-2017 1436.55 700 61.65 28.78 -1.48 2.77 28.61 5.07 Chinas economy grew by a faster-than-
Deepak Fert.* 16-01-2017 284 128.15 51.07 14.23 3.99 9.12 35.03 1.51 expected 6.8% in the fourth quarter, boosted
Vinati Organics* 16-01-2017 716.85 361.2 73.97 1.7 -12.2 8.17 26.55 5.93
by higher government spending and record
bank lending. The economy expanded 6.7%
Trident*# 17-01-2017 68.9 37.3 67.77 0 19.2 37.49 14.46 1.84
in 2016, the National Bureau of Statistics
Himatsing. Seide 18-01-2017 359 144.95 57.22 7.52 -3.84 53.46 19.92 3.42
(NBS) said, roughly in the middle of the
Hind.Zinc* 18-01-2017 296.3 136.1 64.92 3.03 -19.22 -19.45 17.63 3.01 governments 6.5-7% growth target but still
PVR 18-01-2017 1489.5 646 25.25 31 20.92 36.56 57.56 6.02 the slowest pace in 26 years.
Future Lifestyle* 18-01-2017 166.9 69.6 60.16 6.01 14.27 183.62 87.45 1.91 Chinas CPI, the main gauge of infla-
UPL 19-01-2017 747.45 342 27.75 43.54 12.19 18.33 24.95 5.08 tion, increased 2.1% from a year ago in
Power Grid Corpn* 19-01-2017 203.5 129.25 57.9 26.77 26.19 27.16 18.08 2.42 December, slightly down from Novembers
2.3% rise, the NBS said on 10 January 2017.
Hatsun AgroProd.*# 19-01-2017 470 279.29 74.71 3.27 16.63 -14.78 90.56 24.23
Chinas foreign-exchange reserves fell to
Geometric# 19-01-2017 262 136.05 37.06 14.41 1.58 102.82 11.83 2.96
the lowest level in nearly six years last month.
Rain Industries 20-01-2017 67.7 26.05 41.1 18.17 -11.15 48.31 10.8 0.7 The Peoples Bank of China said the worlds
Vakrangee 20-01-2017 304.8 155.8 41.6 12.65 23.59 32.4 34.79 9.11 largest stockpile of foreign currency fell
CCL Products 20-01-2017 299.9 154 44.78 20.97 -2.97 8.17 33.67 6.92 US$41.08 billion in December to US$3.011
KRBL 20-01-2017 346 174.5 58.81 6.45 -16.28 9.07 23.03 4.8 trillion, the lowest level since March 2011.
I O C L* 20-01-2017 361 172.53 58.28 5.32 -15.31 64.81 17.77 2.25 The decline was smaller than the previous
ICICI Pru Life* 20-01-2017 361.95 273.65 80.72 3.14 36.56 9.61
months drop of US$69.06 billion.
Japans leading index strengthened to the
Navin Fluo.Intl.* 20-01-2017 2983.8 1262 38.68 11.19 14.98 78.91 36.14 4.34
highest level in 15 months in November,
Adani Transmissi 20-01-2017 66 26.3 75 17 383.75 -13.57 17.2 2.42 survey data from the Cabinet Office showed.
* Results are on standalone basis for others on consolidated basis. # for TTM ended 30 December 2016, for other TTM The leading index, which measures the fu-
ended 30 September 2016
ture economic activity, rose to 102.7 in No-
of disinvestment in a particular Central surance Company and General Insurance vember from 100.8 in October. The coinci-
public sector undertaking (CPSE) on a case Corporation of India. dent index improved to 115.1, from 113.5 in
by case basis, subject to the Union govern- The shareholding of these public sector October. The coincident indicator reflects
ment retaining 51% equity and management general insurance companies (PSGICs) will the current economic activity.
control. This is in addition to the present be divested from 100% to 75% in one or US homebuilding rebounded sharply in
functions performed by alternative mecha- more tranches over a period of time. During December amid stronger demand for rental
nism as has been approved by CCEA in the process of disinvestment, existing rules housing, and the number of Americans fil-
August 2014. and regulations of the Securities and Ex- ing for unemployment benefits fell to near
The CCEA gave its in-principle approval change Board of India and the Insurance the 43-year low touched in mid-November.
for listing five government-owned general Regulatory and Development Authority of Industrial output in the US accelerated
insurance companies on the stock exchanges. India will be followed. last month at its strongest pace in two years.
They are The New India Assurance Com- The domestic carriers posted strong The housing-market index from the National
pany, United India Insurance Company, 23.9% growth in traffic to 95.52 lakh pas- Association of Homebuilders showed that
Oriental Insurance Company, National In- sengers in December 2016, over 77.09 lakh builder sentiment slipped in January after

26 Jan 30 Feb 12, 2017 CAPITAL MARKET

MarketWatch
notching its highest reading of the business
A downgrade ... and relief
cycle in December. Despite the drop, the
January number was the second-highest The International Monetary Fund cut The Central Board of Direct Taxes has put
reading of the cycle. Indias economic growth estimate for in abeyance its 21 December 2016 circular
The US Empire State index for January FY 2017 to 6.6% from its earlier projection that amplified a potential rise in tax liability
slipped to 6.5, from a revised 7.6 in Decem- of 7.6% due to the impact demonetisation on indirect transfer provisions
17.0 3310
ber, which was an 8-month high. Any read-
16.5
ing above zero indicates improving condi- 3260
16.0
tions. US retail sales rose 0.6% in Decem-
India VIX
ber, less than expected, while holiday sales 15.5 3210
BSE Dollex 30
were up a better-than-expected 4%. 15.0
3160
US nonfarm payrolls rose by 1.56 lakh jobs 14.5

last month, the Labor Department said. The 14.0 l l l l l l l l l l l l 3110 l l l l l l l l l l l l

23 Dec 6 Jan 23 Jan 23 Dec 6 Jan 23 Jan
number of jobs created fell from an upwardly 2016 2017 2017 2016 2017 2017

revised 2.04 lakh in November. The jobless rate

Rise or fall in India VIX depicts increase or decline in volatility Rise or fall in the BSE Dollex 30 depicts firmness or weakness
edged up last month to 4.7% from 4.6%. in the near term of the rupee
President-elect Donald Trump held his
first press conference since winning the a year until the end of CY 2019. Meanwhile, tions are likely to call for two interest-
presidency on 11 January 2017, touching on New York Federal Reserve President Will- rate hikes in 2017, but a forecast of three
many of the issues that will dominate the iam Dudley played down the role of infla- hikes is not implausible. He said he was
opening weeks of his presidency. Looming tion in monetary policy decisions. He said sticking with expectation of two rate hikes
over the proceedings was a newly-pub- inflation is simply not a problem and that that he made in September even though
lished, and entirely unverified, dossier claim- a strong dollar would limit corporations things are now a little bit stronger than
ing the Russian government had collected ability to raise prices. they were then.
compromising information on him. Atlanta Federal Reserve bank president In Europe, the European Central Bank
Trump said Obamacare will be repealed Dennis Lockhart said recovery from the eco- held rates and its bond-buying program
and replaced on the same day and a Su- nomic crisis is largely done, and officials steady at its 19 January 2017 meeting.
preme Court justice will be chosen within should now turn to addressing longer-term President Mario Draghi said the govern-
two weeks of his inauguration. He also re- issues like how to boost productivity. The ing body stood ready to intervene further
affirmed commitments to build a wall on the economy is near full employment, inflation if conditions worsened.
border with Mexico and said he will bring in is close to the Feds 2% goal, and the US UK Prime Minister Theresa May indi-
a border tax for companies that chose to appears locked in for steady growth of cated Britain will press for a firm exit from
move operations offshore. around 2% annually. the European Union. She will put the terms
Federal Reserve Chairwoman Janet Chicago Federal Reserve President of the countrys exits from the EU to a par-
Yellen said she expects rate hikes a few times Charles Evans said US economic condi- liamentary vote. Setting out a vision that
could determine Britains future for genera-
Global equity markets tions and the shape of the EU itself, May
answered criticism that she has been coy
Returns in local currencies Returns in US dollars about her strategy with a 12-point plan for
COUNTRY INDEX FORT 1 MNTH 3 MNTHS 1 YEAR FORT 1 MNTH 3 MNTHS 1 YEAR what has been dubbed a hard Brexit.
Australia ASX 200 -1.8 0.5 4.1 15.0 1.7 5.8 3.3 24.0
Brazil Bovespa 4.6 11.4 4.5 69.7 6.5 14.9 5.4 120.1
Outlook
China Shanghai Composite -1.0 0.4 1.9 7.1 -0.4 1.4 -0.3 2.4
Macroeconomic data, ongoing Q3 results
France CAC 40 -1.2 0.2 8.5 11.9 0.4 2.7 7.2 13.4 season of India Inc., Union Budget 2017-
India BSE Sensex 1.0 3.8 -2.3 10.6 1.1 3.5 -4.3 9.8 18, investment by FPIs, the movement of
India Nifty 1.3 4.6 -2.7 12.5 1.3 4.2 -4.7 11.7 rupee against the dollar and crude oil price
Japan Nikkei 225 -1.6 -1.5 13.5 12.9 0.3 0.8 3.1 17.0 movement will dictate trend on the bourses
New Zealand NZX 50 Index 1.1 2.5 -1.2 15.1 4.2 6.9 -0.1 27.2 in the near term. The budget is scheduled to
South Korea KOSPI 0.8 1.5 2.1 9.9 3.1 3.8 -1.5 11.9 be presented in the parliament on 1 Febru-
United Kingdom FTSE 100 -0.2 1.8 2.6 22.0 0.6 2.9 4.2 5.7 ary 2017. The Economic Survey will be un-
Germany DAX 0.3 1.6 9.9 19.1 1.9 4.0 7.1 18.1 veiled on 31 January 2017, the first day of
Russia MICEX -2.4 -0.6 9.8 25.7 -2.7 1.6 15.8 64.2 parliaments budget session.
UAE ADX General 2.2 6.0 8.2 25.9 2.2 6.0 8.2 25.9 After taking charge as US president, the
Mexico IPC 0.6 2.6 -2.9 11.3 -1.1 -2.1 -14.3 -5.0 policy announcements by Donald Trump
Singapore Straits Times 1.6 4.9 7.0 16.8 2.6 6.5 4.3 17.2 will also have bearing on the global markets.
USA Dow Jones -0.7 -0.5 9.3 23.2 -0.7 -0.5 9.3 23.2 IMF cuts 2017 GDP growth to 6.6%
USA S&P 500 -0.2 0.3 6.5 19.1 -0.2 0.3 6.5 19.1
from 7.6%
As on 20 January 2017. Returns in percentage.
Amit Shenai

Jan 30 Feb 12, 2017 CAPITAL MARKET 27

MarketWatch
MarketWatch

Sizzlers and dampeners

Movements in mid-cap stocks# as on 20 January 2017
COMPANY (FV) MCAP CMP VARIATION (%) HOLDING(%) RESERVES RATIOS
SECTOR (Rs cr) (Rs) FORTNIGHT 1-YEAR PROMOTERS DOM. & FII (Rs cr) DEBT-EQUITY INT COVER P/E
Kirloskar Pneumatic Co (Rs 10) 1234 961 30 34 68 18 309 0 45 27
Capital Goods-Non Elect Equip
Net profit of the air compressors and pneumatic tools maker jumped 288.9% to Rs 20.03 crore on
Beta: 0.61
21.4% spurt in net sales to Rs 123.91 crore in Q3 December 2016 over Q3 December 2015.

Hatsun Agro Product (Re 1) 6628 436 19 52 75 3 220 3 3 91

FMCG Net profit of the dairy products maker surged 64.1% to Rs 28.81 crore on 13.9% increase in net sales
Beta: 0.21 to Rs 944.92 crore in Q3 December 2016 over Q3 December 2015.

BEML (Rs 10) 4825 1159 16 6 54 28 2068 0 2 142

Capital Goods-Non Elect Equip The Union government approved 26% stake-sale in the state-run engineering company to the strategic
Beta: 1.17 buyers to be identified by the government by following due procedure.

Somany Ceramics (Rs 2) 2358 557 15 59 52 16 411 1 7 29

Ceramic Products The ceramic products maker issued commercial paper totaling Rs 15 cr, dated 10 January 2017 and maturity
Beta: 0.77 on 24 March 2017, to reduce high interest bearing cash credit limits and, in turn, reduce cost of borrowing.

Sical Logistics (Rs 10) 1282 231 12 83 62 1 409 1 1 38

Logistics The logistics firm received a letter of award for excavation of overburden at the Jhingurdah open-cast
Beta: 1.12 project of Northern Coal Fields in Madhya Pradesh.

Swan Energy (Re 1) 3986 180 12 176 72 14 417 0 1 -ve

Realty The textile, real estate and energy player received an expression of interest from Tata Realty and
Beta: 0.09 Infrastructure showing willingness to invest up to 10% of equity of subsidiary Swan LNG.

APL Apollo Tubes (Rs 10) 2398 1017 8 48 39 18 324 1 2 69

Steel The steel tubes manufacturer received patents from the Indian Patent Office for two new product
Beta: 0.94 designs covering the shapes and configurations of window frame and metal tube products. The designs
will have a patent for 10 years, with a facility to further extend it for an additional five years.

Kirloskar Ferrous Industries (Rs 5) 1079 79 7 70 60 3 423 0 5 13

Steel The iron castings maker resumed operations and commenced commercial production of one mini blast
Beta: 1.60 furnace (MBF-I) from 17 January 2017 after completion of upgrade. The MBF-I, situated at Koppal
plant, Karnataka, was shut down from 19 September 2016.

Welspun India (Re 1) 7601 76 6 -2 73 14 1778 1 7 10

Textiles The Welspun Group to invest Rs 4000 crore in three large textile projects in Gujarat of the home
Beta: 0.98 fashions supplier to develop a large, modern and futuristic textile industrial complex that will manufac-
ture and supply world class textile products for the global markets.

28 Jan 30 Feb 12, 2017 CAPITAL MARKET

MarketWatch

COMPANY (FV) MCAP CMP VARIATION (%) HOLDING(%) RESERVES RATIOS

SECTOR (Rs cr) (Rs) FORTNIGHT 1-YEAR PROMOTERS DOM. & FII (Rs cr) DEBT-EQUITY INT COVER P/E
Atul (Rs 10) 6406 2160 5 55 44 25 1221 0 16 22
Chemicals Net profit of the chemicals maker fell 5.15% to Rs 58.58 crore despite 5.01% incline in total income to
Beta: 0.95 Rs 679.43 crore in Q3 December 2016 over Q3 December 2015.

Agro Tech Foods (Rs 10) 1177 483 5 -7 52 15 312 0 7 44

Edible Oil
Net profit of the marketer of food and food ingredients was up 28.8% to Rs 8.27 crore on 2.7% incline
Beta: 0.36
in net sales to Rs 207.57 crore in Q3 December 2016 over Q3 December 2015.

Hikal (Rs 2) 1888 230 5 61 69 12 548 1 2 31

Pharmaceuticals The US Food and Drug Administration issued zero observations after completion of a routine inspec-
Beta: 0.71 tion at the chemicals makers manufacturing facility located at Jigani, Bangalore.

Tata Elxsi (Rs 10) 4616 1482 3 -13 45 14 355 0 376 28

IT - Software
The product engineering services provider along with partner Spirent won a new customer in China for
Beta: 1.33
their joint advanced V2X test system providing a flexible, scalable and comprehensive test environ-
ment for testing and performance benchmarking of V2X applications in various stages of the develop-
ment cycle, right from early research up to pre-production.

GE Shipping Co (Rs 10) 5887 390 3 20 30 43 5053 1 4 14

Shipping The shipping company raised Rs 500 crore by allotting 7.99% 5,000 unsecured non-convertible
Beta: 0.63 debentures of face value of Rs 10 lakh each in two tranches of Rs 250 crore each.

Future Consumer (Rs 6) 3666 22 3 6 43 20 -130 1 0 -ve

Trading The food company entered into a joint venture (JV) agreement with Tilda Hain India, part of Hain
Beta: 1.11 Celestial Group, Inc., New York, US, to undertake manufacturing, marketing, trading, selling and
distributing various food products in the health and wellness category such as chips, non-dairy bever-
ages, straws and infant / toddler foods. Each JV partner will hold 50% of the paid-up share capital and
have the right to nominate three directors each to the board.

Delta Corp (Re 1) 2898 125 2 82 41 10 873 0 5 52

Realty The gaming and hospitality player was issued a licence to operate a casino in Gangtok, Sikkim, under
Beta: 1.53 the Sikkim Casino (Control &Tax) Act, 2002. Consolidated net profit rose 37.24% to of Rs 10.06
crore on 4.95% increase in total income to Rs 104.64 crore in Q3 December 2016 over Q3 December
2015.

Zee Learn (Re 1) 1437 45 2 24 62 22 219 1 2 49

Computer Education Net profit of the education services provider surged 167.56% to Rs 6.07 crore on 14.3% jump in total
Beta: 0.83 income from operations to Rs 25.47 crore in Q3 December 2016 over Q3 December 2015.

Mahindra Holidays & Res (Rs 10) 3614 407 2 14 75 15 604 0 19 29

Hotels & Restaurants The leisure and hospitality services provider through step-down subsidiary Covington S.a.r.I, Luxem-
Beta: 0.92 bourg (Covington) increased stake in Holiday Club Resorts Oy, Finland (HCR), by acquiring addi-
tional 6.33% stake for euro 4.37 million. Consequently, the stake in HCR, a subsidiary operating the
vacation ownership business, increased to 91.94% from 85.61% earlier.

Jan 30 Feb 12, 2017 CAPITAL MARKET 29

MarketWatch

COMPANY (FV) MCAP CMP VARIATION (%) HOLDING(%) RESERVES RATIOS

SECTOR (Rs cr) (Rs) FORTNIGHT 1-YEAR PROMOTERS DOM. & FII (Rs cr) DEBT-EQUITY INT COVER P/E
Mercator (Re 1) 1067 44 1 112 41 15 692 1 1 -ve

Shipping The shipping companys qualified institutional placement committee approved the issue price of Rs
Beta: 1.41 40.75, a discount of 4.79% i.e. Rs 2.05 per share, on the floor price of Rs 42.80 per share and allocation
of 2.50 crore shares to qualified institutional buyers.

Kitex Garments (Re 1) 1996 420 1 -22 54 5 363 0 12 19

Readymade Garments/ App The childrens apparel makers board approved further investment of up to US$1 million in Kitex US
Beta: 1.09 Llc. The board also approved availing an additional term loan of Rs 17 crore, under A-TUFS, with
tenure of five years.

Reliance Defence & Engg (Rs 10) 4126 56 0 -28 30 14 958 4 -1 -ve

Ship Building The engineering infrastructure company delivered a 74,500 deadweight tonage (DWT) new-built ice-
Beta: 1.29 class Panamax bulk carrier, Sea Amber, to an international customer. Till date seven similar size, ice-
class Panamax vessels have been delivered to international customers.

Force Motors (Rs 10) 5662 4296 0 72 61 7 1467 0 59 28

Automobile The automobile producer issued commercial papers for an aggregate Rs 200 crore, dated 12 January
Beta: 1.22 2017, with tenure up to 180 days.

Sintex Industries (Re 1) 4337 83 0 15 32 31 4847 1 4 7

Plastic products Consolidated net profit of the plastic processor declined 38.90% to Rs 110.81 crore despite 0.32% rise
Beta: 1.63 in total income to Rs 2096.64 crore in Q3 December 2016 over Q3 December 2015.

KPIT Technologies (Rs 2) 2707 137 0 -5 17 54 1149 0 24 13

IT - Software Consolidated net profit of the technology company rose 30.97% to Rs 73.58 crore on 2.96% improve-
Beta: 0.98 ment in total income to Rs 859.10 crore in Q3 December 2016 over Q2 September 2016. The bottom
line was boosted by an exceptional item of Rs 26.09 crore from gain on sale of entire stake in KPIT
Medini Technologies AG from 1 November 2016. Consolidated earnings before interest, taxation,
depreciation and amortization margins contracted 0.82% to 10.18% from 11%. However, net profit
margins expanded 2.1% to 8.86% from 6.76%.

Granules India (Re 1) 2460 111 -1 -5 52 7 614 1 6 19

Pharmaceuticals Infarmed, the Portuguese drug regulator, conducted a renewal inspection on the pharmaceutical producers
Beta: 1.29 facility at Gagillapur, Telangana, manufacturing pharmaceuticals formulation intermediates and fin-
ished dosages. The inspection report contained 11 observations.

Hindustan Construction Co (Re 1) 4124 43 -2 124 29 42 1785 3 1 34

Construction The construction company was awarded Rs 368.60-crore contract by Ircon International to construct
Beta: 1.47 a cable-stayed bridge including approaches across river Anji Khad in Jammu & Kashmir. The project is
to be completed in 36 months.

# Mid-cap stocks with market capitalisation above Rs 1000 crore and below Rs 8000 crore. Beta is a measure of a stocks volatility in relation to the key benchmark index. Higher the beta of the stock, higher will
be the volatility in the stock price and, hence, riskier the investments. The beta of the index or the market is pegged at 1. Interest coverage ratio (ICR) is a measure of a companys ability to meet its interest
payments on outstanding debt. Higher the ICR, higher is the ability of the company to service its outstanding debt. D/E and ICR is of the latest financial year. P/E is based on EPS for TTM ended 30 September
2016. Promoters, domestic and FII shareholding is as on 31 December 2016.
Compiled by Hitesh Dharawat

30 Jan 30 Feb 12, 2017 CAPITAL MARKET