Zen_Fundamental Analysis on May 2017 Stock List

We have provided below a short list of companies which we feel are currently available at attractive valuations, particularly when viewed with a
medium\long term perspective. The CMP and the Market Cap. are based on 28/04/2017.

CONSERVATIVE INVESTOR (Low Risk Profile)

Sl. Company Name Industry CMP (Rs.) EPS* BV FV DPS Equity Market Cap Time
No. (28/04/17) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.Cr) (Rs.Cr) Frame
1 NTPC Power Generation & Distribution 164.40 12.07 116.95 10.00 3.35 8245.46 135555.36 L
2 Power Grid Corporation Power Transmission 207.60 13.74 92.81 10.00 2.31 5231.59 108607.81 L
3 Unichem Labs. Pharmaceuticals 274.55 11.68 113.69 2.00 2.00 18.18 2495.66 L
4 Huhtamaki PPL Packaging 271.10 11.63 89.72 2.00 3.00 15.10 2046.81 L
5 Esab India Equipment-Welding 636.85 22.46 221.41 10.00 1.00 15.39 980.11 L

MODERATE INVESTOR (Medium Risk Profile)

Sl. Company Name Industry CMP (Rs.) EPS* BV FV DPS Equity Market Cap Time
No. (28/04/17) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.Cr) (Rs.Cr) Frame
1 M&M Diversified 1334.55 61.75 515.51 5.00 12.00 310.55 82888.90 L
2 Thomas Cook (I) Travel Support Services 204.10 0.18 41.47 1.00 0.38 36.68 7486.39 L
3 Inox Leisure Entertainment 298.65 4.81 57.45 10.00 0.00 96.46 2880.78 L
4 Tata Coffee Coffee & Plantations 125.65 9.86 55.32 1.00 1.30 18.68 2347.14 L
5 Kennametal India Industrial Equipment 663.75 11.23 180.73 10.00 2.00 21.98 1458.92 L

AGGRESSIVE INVESTOR (High Risk Profile)

Sl. Company Name Industry CMP (Rs.) EPS* BV FV DPS Equity Market Cap Time
No. (28/04/17) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.Cr) (Rs.Cr) Frame
1 IDFC Bank Banks 65.75 2.98 43.18 10.00 0.75 3399.36 22350.79 L
2 Suzlon Energy Wind Power 20.65 0.04 NA 2.00 0.00 1008.23 10409.97 L
3 HSIL Sanitaryware 341.80 16.65 201.98 2.00 4.00 14.46 2471.21 L
4 Texmaco Rail Rail Solutions 99.35 1.73 42.71 1.00 0.25 21.94 2179.74 L
5 Jamna Auto Inds. Auto Ancillaries 239.35 12.20 39.17 5.00 2.80 39.84 1907.14 L
NA : Not Applicable / Not Available; All figures are on Consolidated basis; DPS stands for Dividend Per Share.

Please refer Research Disclaimer at http://www.zenmoney.com/RAdisclaimer.pdf

* Trailing 12 Months; M = Medium Term (3-12 Months); L = Long Term (12 Months and above)

www.zenmoney.com 1
 NTPC Limited
Company Profile: Incorporated in the year 1975, NTPC Ltd a Maharatna PSU, is India's largest power generating major with a significant presence
in the entire value chain of power generation business and contributes to over 25% of the Nations generation. The companys core business is
generation and sale of bulk power. Other business segments include consultancy, project management and supervision, oil and gas exploration and
coal mining. It provides consultancy in the area of power plant construction and power generation to companies in India and abroad. The Company
generates power from coal, gas, hydro, liquid fuel and renewable based sources, with an installed capacity of 49998 MW (including 6966 MW through
JVs) comprising of 19 coal-based, 7 gas-based, 10 solar PV, 1 Hydro and 9 subsidiaries/joint venture power stations. NTPC acquired 50% equity of
SAIL Power Supply Corporation (SPSCL) and has 28.33% stake in Ratnagiri Gas & Power Pvt Ltd (RGPPL).
Strengths:
NTPC is a low cost producer as compared to its peers and almost the entire output of company's power stations has been contracted under long-
term PPAs (Power Purchase Agreements).
For the 12th 5 Year plan (2012-17) the company exceeded the target of generation capacity by adding 12,840 MW as against the target addition
of 11,920 MW, the highest ever capacity addition in any 5 year plan.
Concerns:
Key Financials (Rs. Cr.) FY 12 FY 13 FY14 FY15 FY16
Slowdown in Industrial activity, lack of power
Total Income 69047.3 76937.1 81828.3 82972.7 80224.0
procurement by utilities and seasonal fluctuations may
OPM (%) 26.62 29.80 27.52 23.73 25.52
lead to fall in power demand, which could impact the
PAT 9812.79 12590.78 11403.61 9986.34 10182.81
revenues.
Equity 8245.46 8245.46 8245.46 8245.46 8245.46
Reserves 66157.3 72995.5 79084.3 73848.5 80951.0 Rise in raw material prices, delay in execution of projects
Debt 59803.6 70418.8 81454.9 102252.0 112030.7 or clearances would lead to cost overrun and impact
EPS (Rs.) 11.90 15.27 13.83 12.11 12.35 its profitability.
Book Value (Rs.) 90.23 98.53 105.91 99.56 108.18 Outlook: NTPCs target is to have an installed power
Dividend (%) 40.00 57.50 57.50 25.00 33.50 generating capacity of 1,28,000 MW by the year 2032,
Promoter H (%) Last 5 Qtrs 74.96 69.96 69.96 69.74 69.74 consisting of a diversified fuel mix comprising 56% Coal,
16% Gas, 11% Nuclear and 17% Renewable Energy Sources(RES) including Hydro. At present the company has a capacity of over 22000 MW under
implementation at 23 locations across the country. The company looks to commission and commercialize about 4500 MW in FY18. NTPC has a
target of adding 10000 MW of solar power over the next 4 years. Growing demand for electricity in the country, Governments focus on improving
the Power sector combined with increased coal availability and faster commercialization of new capacities and focus on renewable energy will be key
for its growth in the coming years. NTPCs high visibility in earnings growth on the back of its aggressive capacity addition plans, regulated business
model, secured power purchase agreements, continued focus on scaling up generating capacity through a mix of conventional and non-conventional
fuel sources, coupled with attractive valuations makes it a good bet for long term investment.
Power Grid Corporation of India Ltd.
Company Profile: Power Grid Corporation of India Limited (PGCIL), a Navaratna PSU was incorporated in 1989 and commenced its operations
in 1993 in the present form. Its core operations include construction, operation & maintenance of ISTS (Inter State Transmission Systems) and
operation of Regional Power Grids. It is one of the world's leading Power Transmission Utility with 1,38,857 circuit km of transmission lines and 219
substations with transformation capacity of more than 2,88,544 mva, total Inter-regional power transfer capacity is 75,050 MW. (as on Mar'17).
PGCIL is also present in telecommunications bandwidth business with its brand name POWERTEL. PGCIL has also diversified its business into
areas such as Consultancy, Distribution and Rural Electrification. The company provides Transmission related consultancy to more than 150
domestic clients and global footprint in 18 countries catering more than 25 clients.
Strengths:
PGCIL has a near-monopoly position in Inter State Transmission (90%) and also in transmission on a whole, and wheels about 45% of the total
power generated across the country.
Company has strong track record in project planning, execution and operation and maintenance.
Key Financials (Rs. Cr.) FY 12 FY 13 FY14 FY15 FY16
Concerns:
Total Income 11329.43 14136.56 16448.93 18437.75 21862.39
Since the transmission projects are linked to power
OPM (%) 82.20 83.49 83.24 84.93 87.06
generation projects, any delay in generation projects
PAT 3302.99 4312.61 4547.58 5046.25 6014.56
will result in delay in transmission projects which will
Equity 4629.73 4629.73 5231.59 5231.59 5231.59
impact the revenues.
Reserves 18953.48 21773.38 29466.35 33207.14 37736.09
Debt 54355.44 69233.40 84219.58 96243.41 109969.33 Outlook: PGCIL has achieved the planned capex for 12th
EPS (Rs.) 6.31 8.24 8.69 9.65 11.50 5Year Plan (FY12-17) of Rs 1.10 lakh Cr, and for 13th 5
Book Value (Rs.) 50.94 57.03 66.32 73.47 82.13 year plan ( FY 2017-2022) the total capex is estimated at
Dividend (%) 21.00 27.50 25.80 20.00 23.10 Rs 2.60 lakh Cr. It expects to receive around Rs. 1 lakh Cr
Promoter H (%) Last 5 Qtrs 57.90 57.90 57.90 57.90 57.90 worth of projects to implement for the coming year and
has set a capex target of Rs 25,000 Cr for FY18. Due to increasing demand for power coupled with capacities of renewal energy coming on stream
i.e. both solar and wind, the company is also setting up transmission corridors to supply power from solar parks to the national grid and 11
renewable energy management centers. Further, new transmission corridors and upgradation of railways are expected to improve the order book
going forward. Currently total projects under execution is approx. Rs 1.39 lakh Cr which provides a multi fold growth opportunity for the company.
On consultancy side, domestically, the company is working on about 105 projects worth around Rs 16700 Cr. and internationally, the company is
working on 17 projects. All the above factors along with a strong expanding asset base makes the company a good long term investment option.

www.zenmoney.com Please refer Research Disclaimer at http://www.zenmoney.com/RAdisclaimer.pdf 2

 Unichem Laboratories Limited
Company Profile: Unichem Laboratories Limited is one of Indias leading integrated pharmaceutical companies with a strong presence in the
countrys domestic formulations market. Companys interest is in synthesis, development, manufacturing, marketing and export of bulk drugs,
chemical intermediates and formulations, serving the needs of both human and veterinary health-care. In addition, it has various pharma products
for addressing therapeutic areas, such as gastroenterology, cardiology, diabetology, psychiatry, neurology, anti-bacterials, anti-infectives and pain
management. Its brands include Losar, TG Tor, Olsar, Tolol and Trika. The company has made more than 500 product registrations across the world
and more than 500 regulatory filings such as DMFs, EDMFs. Domestic Operations contribute 57% of Consolidated Revenues, while International
Operations contribute 43% of Consolidated Revenues. In revenues, Chronic care accounts for 59% of domestic formulation Revenues, while Acute
portfolio accounts for 41% of domestic formulation Revenues. Top 10 Brands contributes 45% of the companys domestic revenues, while Top 50
Brands contributes 79% of the companys domestic revenues.
Strengths:
Export formulations (24% of revenues) have grown at 24% CAGR in FY12-16 on the back of significant investment in infrastructure to push
exports, supported by new product launches in US and a ramp-up in CRAMS for US.
Companys restructuring in India and strengthening US business could continue to augur well for the company.
Key Financials (Rs. Cr.) FY 12 FY 13 FY14 FY15 FY16 Concerns:
Total Income 891.55 1078.91 1249.11 1235.82 1372.41 Increased USFDA scrutiny across the globe regarding
cGMP issues, pricing pressure due to client
OPM (%) 14.42 17.40 20.91 9.85 13.08
consolidation in the US, pricing probe by the
PAT 71.26 113.23 169.31 75.39 108.03
Department of Justice (DoJ) in the US.
Equity 18.06 18.09 18.13 18.15 18.17
With 57% revenue coming from domestic operations,
Reserves 642.48 708.98 798.48 849.37 936.67
companys 10-12% of domestic portfolio is under
Debt 45.89 27.06 25.68 21.97 35.96 National List of Essential Medicines.
EPS (Rs.) 7.84 12.46 18.64 8.30 11.89 Outlook: Unichem Laboratories has revamped its growth
Book Value (Rs.) 73.15 80.38 90.08 95.59 105.10 strategy after dismal performance in last year owing to
Dividend (%) 150.00 225.00 400.00 100.00 100.00 National List of Essential Medicines (NLEM) domestic
Promoter H (%) Last 5 Qtrs 50.11 50.10 50.09 50.08 50.08 policy changes including heavy price cuts. As part of the
strategy, company has increased its focus on large brands, price hikes have been adopted for the products not covered in the NLEM and it has
shifted from distributor-driven model to a clearing and forwarding (C&F) driven model, that resulted in improving performance. Company has
made significant investments in building infrastructure which includes state of the art R&D centre and API plants for captive consumption to
support international business and also is in the process of further augmenting its API & Formulation capacities for expected future growth.
Companys foray in the OTC segment (unienzyme) in domestic market augurs well to grow in the non-prescription space. Companys focus on US
business with incremental filings and subsequent launches coupled with capacity expansion at its Goa, Pithampur and Kolhapur facilities with an
estimated cost of Rs. 300 Cr is expected to aid its prospects in domestic and international markets going ahead.
Huhtamaki PPL
Company Profile: Huhtamaki PPL, (HPPL) (earlier known as Paper Products), a part of the Finland-based Huhtamaki group is a leader in the
flexible consumer packaging sector. The companys wide portfolio of packaging solutions includes flexible packaging, labeling technologies, shrink-
sleeve solutions, specialized cartons, cylinder engraving and specialized films for high barrier. The company caters to the packaging needs of almost
the entire range of FMCG products such as seeds, specialized chemicals, automotive lubes, electronics, healthcare and many other specific specialized
uses including anti-spurious packaging. The companys major clients comprise Britannia, Cadbury, GSK, Godrej, HUL, ITC, Nestle, Pepsi, P&G, etc.
Its manufacturing facilities are located at Ambernath, Bengaluru, Hyderabad, Khopoli, Navi Mumbai, Parwanoo, Rudrapur, Silvassa, Taloja and
Thane. The combined production capacity is 69,810 Tonnes Per Annum (TPA). Apart from this, Positive Packaging, acquired in the Calendar Year
(CY) 2014, has capacity of 31,800 TPA.
Strengths:
HPPL is a market leader in flexible packaging in India with market share of around 9% in the organized market.
A strong parentage, global packaging leader, Huhtamaki Oyj, (owns 68.77%), has enabled it to strengthen its presence in the export market.
Acquisition of Positive Packaging is expected to extend companys customer network and would also help synergies in sourcing of inputs and up-
gradation in technology.
Key Financials (Rs. Cr.) CY 12 CY 13 CY14 CY15 CY16 Concerns:
Total Income 905.18 1095.02 1246.20 2070.90 2195.01 The packaging sector in India is highly fragmented and
OPM (%) 10.90 11.61 10.86 12.02 12.05 competitive.
PAT 45.08 56.21 66.60 76.93 84.58 Volatility in raw material, most of which is linked to

Equity 12.54 12.54 14.54 14.54 14.54 crude prices may put pressure on its margins.
After the recent acquisitions, the companys debt has
Reserves 342.42 378.27 552.94 604.14 662.31
increased and this may increase its interest cost burden
Debt 51.86 46.20 41.94 528.64 408.38
impacting its profits.
EPS (Rs.) 6.20 7.73 9.16 10.58 11.63
Outlook: The flexible packaging industry has been
Book Value (Rs.) 56.61 62.33 78.06 85.10 93.10 witnessing healthy growth in recent years in line with the
Dividend (%) 130.00 140.00 140.00 140.00 150.00 strong growth in the domestic FMCG sector. To tap this
Promoter H (%) Last 5 Qtrs 68.77 68.77 68.77 68.77 68.77 growth, HPPL has been consolidating its position in the
market in recent years through acquisitions and expansions. The company acquired Positive Packaging Industries Ltd (PPIL), a leading player of flexible
packaging in 2014. This acquisition has strengthened HPPLs position in the Indian flexible packaging market making it among the top 2 players in the
industry. It will benefit from the synergies arising out of the acquisitions in the coming years which will be the key driver for its growth. The company in
March 2017 commenced commercial production at its two new units: Label manufacturing plant and Flexible manufacturing unit in Sikkim which is going
to give better access to its North East market. The company expects the returns from these new plants will begin from FY18. Strong growth opportunities
in the flexible packaging market and the companys leadership position in the market makes HPPL a good bet for long term investing.

www.zenmoney.com Please refer Research Disclaimer at http://www.zenmoney.com/RAdisclaimer.pdf 3

 Esab India Limited
Company Profile: ESAB India Ltd (Esab) was formed in the year 1987 by acquiring the welding business of Peico Electronics & Electricals Ltd
(now Philips India Ltd). ESAB India is a subsidiary of Colfax Corporation, USA, which holds 73.72% through ESAB Group. ESAB India Ltd is one
of the leading suppliers of welding and cutting products in the country. It is engaged in the business of welding consumables which includes welding
electrodes, copper coated wires and welding fluxes and of welding equipment which includes welding machines, cutting equipment and allied
needs. ESAB products are now an integral part of industries like Shipbuilding, Petrochemical, Construction, Transport, Offshore, Energy and Repair
and Maintenance. ESAB's manufacturing facilities are located at Kolkata, Chennai and Nagpur.The Company exports its products to Bangladesh,
SouthAfrica, Singapore and the Middle East. Further the skills, know-how and resources at its R & D Departments, have helped the Company to
offer a wide range of world-class products for diverse applications, cost effectively. Recently the company has closed its manufacturing operations
at Khardah in Kolkata and the entire manufacturing of Kardah plant was shifted to Ambattur (Chennai) plant without any disturbance to the
operational performance of the company.
Strengths:
Esab has established itself as one of the leading suppliers of welding and cutting products in the country. Continued focus on expanding its
presence across segments through varied product offerings with support from parent company on specific product ranges.
Being a debt free company with comfortable cash position and consistent dividend payout, Esab is well poised to aggressively position itself to
gain market share in highly competitive markets.
Concerns:
Key Financials (Rs. Cr.) FY 12 FY 13 FY14 FY15 FY16 Delay in Economic recovery and any slowdown in

Total Income 557.41 514.82 440.25 555.57 462.07 implementation of Government policies.
Competition from unorganized players, volatility in
OPM (%) 14.95 12.96 13.47 8.07 11.03
raw material prices and any delay in projects from
PAT 47.44 37.77 33.12 23.64 28.34
user industries are expected to impact the profitability.
Equity 15.39 15.39 15.39 15.39 15.39
Outlook: Esab has undertaken rationalization at its
Reserves 196.20 220.56 251.88 273.66 300.15
manufacturing units and the move is expected to improve
Debt 0.00 0.00 0.00 0.00 0.00 productivity and capacity utilization in consumables. The
EPS (Rs.) 30.83 24.54 21.52 15.36 18.41 company is also working on other initiatives in supply
Book Value (Rs.) 137.49 153.31 173.66 187.82 205.03 chain, manufacturing and other areas for cost reduction
Dividend (%) 150.00 75.00 10.00 10.00 10.00 to help it to sustain and grow margins in a difficult
Promoter H (%) last 5 Qtrs 73.72 73.72 73.72 73.72 73.72 environment. Demand for welding consumables is directly
proportional to steel production in the country. The key driver of the welding consumables market is growth of its end-use industries, especially the
construction industry. Esab is now focusing on growing services segment to cushion the impact of any sustainable difficulties in the manufacturing
segment. Government initiatives & recent developments like smart cities, rail network, highway projects, freight corridors, new ports etc to boost the
demand environment and increased investments in key sectors like construction, infrastructure, steel, power, cement and energy provides an
optimistic outlook for future growth. Esabs new product launches and a potentially leaner organization structure would augur well for sales and
profitability margins. The company has been working on opportunities to exploit its potential as a service provider in R&D and shared services to
Esab entities around the world. Consolidation of production units, continued focus on services segment along with incremental revenue from new
product launches coupled with growing demand is expected to result in profitability expansion going forward.
Mahindra & Mahindra Limited
Company Profile: Mahindra & Mahindra Limited (M&M), incorporated in 1945 is a part of the Mahindra Group. M&M is a flagship company for the
Group, consists of 154 subsidiaries, 8 JVs & 16 Associates. M&M is Indias leading Utility Vehicle (UV) manufacturer & Mahindra is the worlds largest
selling tractor brand by volume and Indias leading Tractor manufacturer for over 30 yrs. M&M has a portfolio of Electric Vehicles to SUVs Pick-Ups to
Heavy Commercial Vehicles (HCV) & Tractors to various Farm Equipments. Its manufacturing facilities are located at Kandivali, Nashik, Igatpuri,
Nagpur, Zaheerabad, Jaipur, Rudrapur, Haridwar, Chakan & Mohali. M&M has access to markets in North America, Middle East & Africa, APAC, South
America & Europe. M&Ms consolidated revenues mainly include Automotive, Farm Equipment, Financial Services, along with IT Services, Steel Trading,
Infrastructure, Hospitality, SystemTech and Others. M&M has 4 spare parts warehouses located at Mumbai, Kanhe, Hyderabad and Jaipur.
Strengths:
M&M has leading market share in Tractors (43.4%), UV (37.9%), Small CV (51%),Pick-Ups (69.1%) , IT (Top 5 in India), Financial Services
(Largest NBFC in Rural & Semi-urban areas) & Vacation Ownership (Club Mahindra Holidays).
Global strategic partnerships with Sampo Rosenlew (Global combine harvester business), Pininfarina (Design House), SsangYong (Auto Maker)
and MAM (Japanese Tractor Manufacturer) provides M&M a competitive edge. Concerns:
Key Financials (Rs. Cr.) FY 12 FY 13 FY14 FY15 FY16 External factors like economic growth, Govt. policies &
monsoon coupled with stiff competition from other
Total Income 60975.45 69664.28 75062.84 71973.80 79086.00 players, availability of large number of variants & the
OPM (%) 12.77 14.29 14.58 13.33 12.89 bargaining power of its end consumer could affect the
PAT 3126.66 4099.20 4666.93 3137.47 3211.26 company's performance.
Equity 294.52 295.16 295.16 295.70 296.32 Outlook: M&M is seeing revival in Farm Equipment &
Reserves 16409.29 19665.54 23011.70 25560.68 28323.32 Auto segment aided by good monsoon which has boosted
Debt 23120.54 28711.05 35166.79 37911.46 43969.73 rural demand and given a much needed push to the
EPS (Rs.) 52.76 69.17 78.75 52.94 54.19 industrial activity in India. M&M has lined up new launches
Book Value (Rs.) 283.58 338.13 394.82 437.21 482.92 in the Farm Equip. & Auto Segment in the next 18-24
Dividend (%) 250.00 260.00 280.00 240.00 240.00 months. It also plans to invest Rs. 1500 Cr in Nashik &
Promoter H (%) Last 5 Qtrs 26.93 26.80 26.80 26.77 26.69 Igatpuri under the Ultra Mega Project by Maharashtra
Govt. which will increase the capacity of Nashik Plant from 160k units to 210k units. M&M is a pioneer in Electric Vehicles in India and is evaluating
plans to launch a high end electric car leveraging the Pininfarina brand. The recent Supreme Court decision on BS IV vehicles could have a one time
material impact on the financials in the short term, however the company is looking at various options to liquidate the current BS III inventory and
ramping up the BS IV production ensuring stability in its' operations. M&M is also focusing on Defence segment through inorganic growth to tap
Indian government's huge defense spends. A diversified business model, strong presence in the rural & urban markets, continued focus on investing
and growing its portfolio by introducing and scaling up new products, healthy balance sheet and a strong brand makes M&M a good buy for long
term investment.

www.zenmoney.com Please refer Research Disclaimer at http://www.zenmoney.com/RAdisclaimer.pdf 4

 Thomas Cook (India) Limited
Company Profile: Thomas Cook (India) Limited (TCIL) is Indias leading integrated travel and travel related financial services company. TCIL
offers a broad spectrum of services that include Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Insurance, Visa & Passport services and
E-Business. Company has ventured into three sets of businesses i.e. Travel vertical that has Thomas Cook and SOTC brands, secondly Vacation
Ownership business consists of Sterling Hotels and thirdly Quess Corp, its HR service vertical. Quess Corp, with strong client base, is among the
leading industrial asset management service providers and the largest integrated facility management service providers in India. TCIL has presence
in 7 countries outside India apart from its subsidiaries in Mauritius, Sri Lanka, Singapore and China. Recently TCIL listed its subsidiary Quess Corp
(62.6%) in the domestic markets.
Strengths:
TCILs footprint extends to over 261 locations (incl. 21 airport counters) in 102 cities across India, Mauritius and Sri Lanka and is supported by
a partner network of 96 Gold Circle Partners and 81 Preferred Sales Agents in over 130 cities across India.
Consequent to the recent acquisitions, apart from Thomas Cook brand, TCIL currently owns strong and well known brands TCI (Travel
Corporation India), Sita, Distant Frontiers, SOTC and Luxe Asia, Kuoni Hong Kong etc.
Key Financials (Rs. Cr.) FY 11 FY 12 FY13 FY15 (15m) FY16 Concerns:
Apart from increasing competition, Companys
Total Income 410.54 440.50 1295.95 3286.32 4283.55
operations are directly associated with performance of
OPM (%) 30.54 27.76 11.84 8.63 4.42
Travel & Tourism Industry, which is currently under
PAT 56.24 50.44 62.22 90.15 -37.93 pressure amid global macroeconomic uncertainty.
Equity 21.20 21.32 24.77 27.27 36.59
Outlook: Thomas Cook, Indias largest and fastest
Reserves 370.48 416.52 663.45 1301.81 1027.71
growing travel company is expected to maximise the
Debt 225.56 187.29 181.25 375.66 920.79
growth opportunity across Outbound, Inbound and
EPS (Rs.) 1.54 1.38 1.70 2.46 -1.04
Domestic businesses. Also, strong growth from Quess
Book Value (Rs.) 18.48 20.54 27.78 48.74 29.09Corp, one of the largest staff augmentation and general
Dividend (%) 37.50 37.50 37.50 50.00 37.50staffing provider in India that contributes 48% topline
Promoter H (%) Last 5 Qtrs 67.83 67.82 67.72 67.71 67.66and 54% margins to TCIL, is expected to support
companys growth at consolidated level. Further, improving business from other verticals including Financial Services and Vacation Ownership
business segments would strengthen companys performance. TCILs presence as largest foreign exchange dealer (initiatives including ongoing
'Grand Forex Festival'), foray into the m-commerce space, launch of Online Visas, continued focus on acquisition of new clients along with suite of
products and its venture into Medical Tourism in India are among few other triggers that would drive its future growth. Also, companys thrust on
inorganic growth opportunities (including latest acquisition of Kuoni's global network of destination management specialists covering 17 countries
across various geographies) would leverage inherent synergies across its global travel portfolio going forward. Despite short term pressure on
earnings owing to currency fluctuations and low demand amid rising global uncertainty, companys leading position in the travel and tourism
markets, healthy balance sheet and strong growth prospects in travel and tourism sector makes it a good bet for long term.
INOX Leisure Limited
Company Profile: INOX Leisure Limited, incorporated in 1999 is a diversified venture of the INOX Group in the entertainment sector. INOX
Leisure is a subsidiary of Gujarat Fluorochemicals Limited. The company is in the business of film exhibition and operating and managing a national
chain of multiplexes under the brand name INOX. The company along with IMAX Corporation has installed 5 IMAX theatre systems in
multiplexes located in Mumbai, Bengaluru, Delhi and Kolkata. INOX has launched Indias first 7 star luxury movie experience and IMAX Screen
with INOX INSIGNIA in Mumbai. Three acquisitions i.e. Calcutta Cinema Pvt Ltd (2007), Fame India Ltd (2011) and Satyam Cineplexes Ltd (2014)
coupled with a healthy organic growth enabled it to become one of the largest multiplex operators in India. INOX has an occupancy rate of 28%, F&B
spend per head of Rs. 62 and Average Ticket prices Rs. 178 (as on FY 2017). INOX has 119 properties spread across India i.e. West (49), North (27),
South (24) and East (19). Revenue wise approx 61.3% is derived from Net Box Office and 23.2% from Food & Beverages.
Strengths:
INOX has one of the largest multiplex chains in India. Currently they operate 119 properties located in 58 cities across the country with 472 screens
having a total capacity of 118,947 seats.
INOX accounts for a 20% share of the multiplex screens in India and a 8% share of domestic box office collections.
Key Financials (Rs. Cr.) FY 12 FY13 FY15 FY16 FY17 Concerns:
Total Income 768.91 877.78 1025.08 1337.01 1229.91 Heavy competition with other multiplexes coupled and
OPM (%) 12.89 14.87 12.72 14.16 12.52 single screen theaters would put pressure on pricing
PAT 18.45 36.94 20.04 77.49 30.62 power and theatre occupancy.
Equity 96.12 96.15 96.16 96.16 96.16 Dependency on the film industry to roll out good content
Reserves 228.45 444.44 612.70 527.27 456.37 coupled with Piracy and pre-release movie leaks have a
Debt 280.99 242.17 241.19 267.04 291.93 major effect on theater footfalls and occupancy rates.
EPS (Rs.) 1.92 3.84 2.08 8.06 3.18
Outlook: INOX Leisure Limited has a significant pan-India
Book Value (Rs.) 33.75 56.22 73.72 64.83 57.46
presence and nearly 40% of INOX properties are in Top 10
Dividend (%) 0.00 0.00 0.00 0.00 0.00
cities. The brand INOX aims at growing with adoption of
Promoter Holding (%) 48.70 48.70 48.70 48.70 48.70
state-of-the-art technology, unparalleled service and
ambience, strong brand partnerships and a robust pipeline of new screens. INOX continues to deleverage its box office revenues by driving synergies
through improvements in the F&B supply chain, higher advertising revenues and lower overheads. INOXs partnership with 50 leading Indian and
global brands could result in higher growth potential for advertising and other ancillary revenues. INOX continues to expand organically and is
constantly on a lookout for acquisitions to increase their properties and screens. The recent 7th commision payout, good monsoon and increasing
dependence on visiting theatres as a source of entertainment would result in a rise in theatre footfalls and growth in revenues. The companys
aggressive strategies for growth by inorganic acquisitions, constant renovations to enhance user experience and a better bargaining power with
production houses makes INOX Leisure Limited a good bet with a long term view.

www.zenmoney.com Please refer Research Disclaimer at http://www.zenmoney.com/RAdisclaimer.pdf 5

 Tata Coffee Limited
Company Profile: Tata Coffee Ltd., a subsidiary of Tata Global Beverages Ltd, is one of the largest integrated coffee companies in the world
producing high-quality green bean and instant coffee. It is primarily engaged in the production, trading and distribution of Coffee and also has
presence in Tea and Allied products. The company owns 19 coffee estates (18,224 acres) and 7 tea estates located in the districts of Coorg, Hassan
and Chikmagalur districts of Karnataka and in Valparai district of Tamil Nadu. Tata Coffee produces 10,000 metric tonnes per annum (mtpa) of
natural shade grown Arabica and Robusta coffees in both washed and unwashed forms and produces 7500 MT of tea. Apart from coffee and tea,
pepper and cardamom are also grown as intercrops on its estates, producing about 1300 MT of Pepper. It exports Green Coffee to countries in
Europe, Asia, Middle East and North America.
Strengths:
Companys plantation business is also engaged in the production of Orthodox Tea, Pepper & Timber, also it is the largest single producer of black
& white Pepper in India.
Company is the exclusive supplier of high quality roasted Arabica beans to Tata Starbucks in India and also serves to roasters across the world
like Starbucks, Illycae, Nespresso, Tchibo, Strauss and Lavazza.
Key Financials (Rs. Cr.) FY 12 FY 13 FY14 FY15 FY16 Concerns:
Total Income 1595.39 1714.02 1710.72 1740.42 1791.97 Volatility in Coffee prices may impact the companys
OPM (%) 11.48 18.34 12.98 20.51 18.64 profitability.
PAT 81.19 116.23 81.48 120.39 117.83 As the company is export oriented, Currency volatility
Equity 18.68 18.68 18.68 18.68 18.68 could affect the net realizations of plantation segment
Reserves 493.74 604.33 673.70 777.52 888.86 and value added product segments.
Debt 738.05 915.25 972.87 901.84 897.41 Outlook: Being an integrated coffee company, Tata Coffee
EPS (Rs.) 4.35 6.22 4.36 6.44 6.31 has been consistently moving up the value chain in both its
Book Value (Rs.) 27.43 33.35 37.07 42.62 48.58 plantation business, as well as, its instant coffee business
Dividend (%) 110.00 125.00 130.00 130.00 130.00 looking to transform itself into a premium specialty coffee
Promoter H (%) Last 5 Qtrs 57.48 57.48 57.48 57.48 57.48 company from a commodity player. The company has
been consistently upgrading the capacities and adding new machinery with the aim of increasing market share in the Specialty Coffee segment in the
international markets. The company is planning to set up a freeze dried coffee plant in Vietnam, which will help the company to expand its global
footprint. Companys focus on value-addition and superior offerings, as well as, growing demand for instant coffee is expected to be the growth drivers
in the long term. The company strong portfolio of products, established presence in the sector and strong relationship with Starbucks coupled with
growing coffee culture in the country and healthy global demand for Coffee products makes Tata Coffee a good bet for long term.

Kennametal India Limited

Company Profile: Kennametal India, (KIL) (formerly known as Widia India Ltd.) is part of US based Kennametal Inc. and is a leading
manufacturer of hard metal products and machine tools. Its product portfolio includes a wide selection of standard and customized technologies
for metalworking, such as sophisticated metal cutting tools, tooling systems and services, as well as advanced, high-performance materials, such
as cemented tungsten carbide products, super alloys, coatings and investment castings. Company also manufactures and markets a complete line
of tool holders, tool-holding systems and rotary-cutting tools by machining and fabricating steel bars and other metal alloys. In addition, Company
produces specialized compacts and metallurgical powders, as well as products made from tungsten carbide or other hard materials that are used
for custom-engineered and challenging applications, including mining and highway construction, among others. KIL cater to the needs of a wide
variety of manufacturing and other industries such as transportation, general engineering, aerospace & defense, energy, power generation equipment,
earthworks, mining and construction. The company has plants at Bangalore, Karnataka, and at Patancheru near Medak, Telangana.
Strengths:
KIL receives technological and managerial support from its parent, Kennametal Inc, the world's second-largest manufacturer of carbide tools.
Strong customer base with leading names such as GM, TVS, Tata Motors, Yamaha, BHEL, Escorts, L&T and Mitsubishi Heavy Industry among
others.
Concerns:
Key Financials (Rs. Cr.) FY 12 FY 13 FY14 FY15 FY16
The continuing slowdown in the energy sector has been
Total Income 594.23 497.60 550.77 581.10 591.79
impacting KILs revenues in recent times.
OPM (%) 20.47 9.30 8.38 12.40 9.26
PAT 68.39 14.85 17.07 33.52 20.74 Outlook: After facing a challenging time in the last few
Equity 21.98 21.98 21.98 21.98 21.98 years, KIL has been witnessing a turnaround in its
Reserves 279.50 294.35 311.42 339.65 355.10 operations in the recent quarters. Going forward, KIL is
Debt 0.00 0.00 0.00 0.00 0.00 hoping to consolidate and grow its core business and
EPS (Rs.) 31.11 6.76 7.77 15.25 9.44 improve its market reach through better distribution
Book Value (Rs.) 137.16 143.92 151.68 164.53 171.56 channel. The company continues to leverage its dual brand
Dividend (%) 250.00 0.00 0.00 20.00 20.00 strategy (kennametal and Widia) and to take advantage
Promoter H(%) Last 5 Qtrs 75.00 75.00 75.00 75.00 75.00 of the growth opportunities in the Widia brand, it
implemented a new strategy in FY17, the key attribute of which is to focus on Widia brand of products. The company is also seeing new growth
opportunities opening up in the Railways, Defence and Aerospace sectors. The companys initiatives to increase its exports (including exploring the
overseas market for Machine Tool business) have started yielding results. Improving economic outlook and the resultant improvement in the key end
user industries will drive its growth going forward.

www.zenmoney.com Please refer Research Disclaimer at http://www.zenmoney.com/RAdisclaimer.pdf 6

 IDFC Bank
Company Profile: IDFC Bank, the newest entrant in the banking sector started its banking operations on 1st October 2015, following its demerger
from the parent, Infrastructure Development Finance Company (IDFC). The parent company IDFC holds 53% stake in IDFC Bank. Its operations
are divided into four different sections of Banking: Bharat Banking - catering to rural and semi urban households, Personal Banking, Business
Banking and Commercial & Wholesale Banking. The Bank is presently focusing on the non-core income side to shore up capital. As on March 31st,
2017, IDFC Bank had 8,613 customer Points-of-Presence, includes 74 branches, 47 ATMs, 5661 micro ATMs, 2481 Aadhaar Pay enabled merchants
points and 350 Business Correspondent outlets.
Strengths:
The bank has the advantage of ready asset base, as after the demerger of IDFC and IDFC Bank, all assets and liabilities related to the banking
operations have been transferred to IDFC Bank.
The Banks focus is on two underserved customer segments: the rural under-banked and the self-employed.
Because of its demerger, the Bank will now have access to low cost CASA funds.
Key Financials (Rs. Cr.) FY16 FY17 Concerns:
The Banks key focus is on wholesale segment of lending, where usually the margins are
Total Income 4052.03 9545.83
PAT 466.88 1019.74 lower compared to retail segment.
Equity 3392.62 3399 Outlook: IDFC Bank, the newest commercial Bank has set a target to become a mass retail
EPS (Rs.) 1.33 2.98 bank in the next 24-36 months. The Bank, which was primarily focused on infra lending, has
NIM 2.29 2.1 reduced its exposure to infra space to current 54% from 72% a year ago. The Bank has
Net NPA (%) 2.39 1.14 chalked up aggressive expansion plans for its growth, including acquisitions of entities
Book Value (Rs.) 40.17 43.18 dealing with retail clients, mostly in the microfinance space. It plans to diversify its revenue
Dividend (%) 2.50 7.50 base into retail, mid-market lending, non-infra lending, non-interest and fee based income,
Promoter H (%) Last 2 Qtrs 52.93 52.88
and rural lending among others to achieve its growth target. The bank is also planning to
* Listed on Nov 06th, 2015
increase its customer base to 10 million in the next three years from the current 1.4 million and increase its branch count to 200 from the current 74
and improve its banking outlets to 2000 from the current 350. Reasonable valuations, focus on the underserved market and strong growth prospects
make IDFC Bank a good bet for long term.

Suzlon Energy Limited

Company Profile: Suzlon Energy is engaged in wind turbine manufacturing and provides wind energy solutions. The Companys offers comprehensive
product portfolios - ranging from sub-megawatt onshore turbines at 600 kilowatts, to commercially-available offshore turbine at 6.15 megawatts
(MW). Suzlon has installations of 16 gigawatts wind energy capacity worldwide, of which 10 gigawatts are in India. The Company has presence
across Asia, Australia, Europe, Africa and North and South America. The Companys turnkey services range from front-end engineering design,
construction, installation and commissioning to long-term operations and maintenance across the wind energy value chain. The Companys delivery
process sections include micrositing, grid connection, HV/ substation creation, electrical (reticulation), laying roads and foundations and project
scheduling.
Strengths:
Suzlon Energy is the domestic market leader with 35% share in Indias cumulative wind energy installations with strong presence in all customer
segments
Suzlon is the only Indian wind energy company with an in-house Research and Development (R&D) set-up in Germany, the Netherlands,
Denmark and India.
Company after reducing its debt by almost 50% in the recent years, is set to exit corporate debt restructuring in the coming three months.
Key Financials (Rs. Cr.) FY 12 FY 13 FY14 FY15 FY16 Concerns:
Total Income 21261.92 19605.93 19452.39 20014.93 10558.92 Company is operating in high working capital sensitive
segment, and any possible shortage could impact
OPM (%) 10.23 -9.12 -2.86 -29.69 19.87
margins adversely.
PAT -478.58 -4723.96 -3519.97 -9157.69 482.59
Wind energy business remains dependent on
Equity 361.41 355.47 503.57 741.54 1004.10
government subsidies and incentives and lack of
Reserves 4825.37 -35.06 -1041.48 -9863.84 -8086.87
cooperation from govt. could add pressure on margins.
Debt 14033.98 15190.81 17053.32 17810.96 11430.76
Setting up a wind farm is land sensitive issue and
EPS (Rs.) -0.95 -9.41 -7.01 -18.24 0.96 delay/disrupt in land acquisition could result in project
Book Value (Rs.) 10.33 0.64 -1.07 -18.17 -14.11 delays.
Dividend (%) 0.00 0.00 0.00 0.00 0.00
Outlook: Suzlon Energy, the domestic market leader in
Promoter H(%) Last 5 Qtrs 20.97 20.97 20.95 20.95 20.95
the wind equipment manufacturing which was under severe
debt burden in recent years has been working towards a gradual turnaround in its operations. The company has made sizeable reduction in its debt by
streamlining its operations and actively unlocking its stake in its subsidiaries. The company has made significant changes in its working capital
management strategy, bought in better operating practices and strengthened its management team to ensure future growth. The focus for the company
now is to improve its profitability. The company has been investing heavily into R&D in the last five years focusing on developing high yielding products
that effectively bring the cost of energy by 20% thereby improving project IRRs as well as improve the power tariffs. The company is expecting increased
order flow from states such as Andhra Pradesh, Telangana, Gujarat and Karnataka to drive its growth in the medium term. The company has also
forayed into the solar energy sector and has build a healthy solar power project portfolio of 515 mw. Suzlon is planning to diversify its domestic
concentration risk by gradually growing its international presence. Governments thrust on renewable energy supported by positive policy action will be
the key growth driver for the company going forward.

www.zenmoney.com Please refer Research Disclaimer at http://www.zenmoney.com/RAdisclaimer.pdf 7

 HSIL Limited
Company Profile: HSIL Limited, incorporated in 1960 is a leading player in the organised sanitaryware market in India and is the largest
manufacturer of bathroom products. The company deals in various product categories i.e. Water Closets, Faucets, Wash basins, Urinals, Showers,
Cisterns and various bathroom accessories. HSILs largest brands are Queo, Amore, Hindware Italian Collection, Hindware Art, Hindware,
Benelave and Rasi. HSIL possesses the largest distribution network with 3000+ dealers and 20,000+ retailers, 140+ Hindware Galleria and 500
Hindware shop-in-shops across the country coupled with a dealer distribution base of 225 distributors and 4,000 active sales touch points. The
company derives nearly 92.69% of revenues from domestic sales and 7.31% from exports in 2015-16. HSIL has 4 plants in the Building Products
Division at Telangana, Haryana and two in Rajasthan (total 3 mn capacity) and 4 plants in the Packaging Products Division at Karnataka,
Uttarakhand and two in Telangana.
Strengths:
HSIL has a market share of over 40% in the countrys ceramics products business. HSIL is also the largest manufacturer of bathroom products.
Overall annual growth rate in the sanitaryware industry is 10-12 per cent, however, consumer products enjoy growth of 30-35 per cent annually
mainly due to penetration of new technology in urban areas.
Concerns:
Key Financials (Rs. Cr.) FY 12 FY 13 FY14 FY15 FY16 Inability to meet changing customer needs with
Total Income 1513.48 1874.93 1908.01 2004.18 2079.88 innovative designs across the product portfolio could
OPM (%) 16.84 15.26 13.48 16.77 15.32 result in rising inventories under building products.
PAT 93.55 82.05 33.98 85.44 89.04 Outlook: HSIL is a leading player in the sanitaryware and
Equity 13.21 13.21 13.21 14.46 14.46 bathroom products. As part of its capex plans HSIL has
Reserves 954.19 1013.08 1015.08 1308.63 1363.48 enhanced the sanitaryware products capacity from 38 lakhs
Debt 864.52 1034.09 1132.99 785.99 623.72 units p.a. to 42 lakhs units p.a. and further extended
EPS (Rs.) 12.94 11.35 4.70 11.82 12.32 capacity utilization in its existing plants in Rajasthan and
Book Value (Rs.) 133.80 141.95 142.23 183.00 190.59 Telangana with capex of Rs. 100 crores. Two new plants
Dividend (%) 150.00 150.00 150.00 175.00 200.00 with capex of Rs. 150 each would be commissioned in first
Promoter H% Last 5 Qtrs 47.11 47.11 47.66 48.43 48.43 half of FY18 at Telangana that would manufacture CPVC
Pipes and Security Products respectively. HSIL has shifted its focus to consumer products thus aiming to grow the segment revenues to 25% in the next
5 - 7 years. The consumer products industry have a 30 - 35% annual growth rate which HSIL aims to take advantage of with investment on product
development, manufacturing facilities and network expansion. The company is also focusing on water conservation and providing better bathing
experience to the consumers and has plans to expand its retail presence and focus on aggressive product launches. The company has plans to target 400
concept stores called - Gallerias over the next three years and it has also earmarked a sizeable amount as investment in consumer products in 2017-18,
on manufacturing, product development and network expansion. In conclusion, the increasing promotion of sanitation by the government in rural and
semi urban areas, increasing awareness of water preservation and aggressive expansion strategies coupled with decent revenue growth, a healthy
balance sheet and reasonable valuations makes HSIL Limited a good bet for investors with a long term view.
Texmaco Rail & Engineering Ltd
Company Profile: Texmaco Rail & Engineering Ltd. (TREL), a part of Adventz Group was formed after spin off (effective Apr 1, 2010) of heavy
engineering and steel foundry divisions of Texmaco Ltd. TREL has four business divisions namely, Rolling Stock, Steel Foundry, Hydro-mechanical
equipment & Steel Structures and Process Equipment & others. Its Heavy Engineering divisions are located at Agarpara, Sodepur and Panihati, and
its Steel Foundry is located at Belgharia. All these are situated very close to Kolkata and spread over a cumulative area of 170 acres. TREL has two
joint venture companies namely, JV with Wabtec Corporation to initially provide hi-tech Freight products and services such as Draft Gear, Bogie
Mounted Braking and other State-of-the-Art Railway products to the Indian Rail network, which is expected to expand and modernize and Touax
Texmaco Railcar Leasing Pvt. Ltd a JV is for entering into the business of wagon leasing, post receipt of relevant regulatory and statutory approvals,
pursuant to recent opening up of Wagon Leasing by Railways under its Wagon Leasing Scheme. The merger between Kalindee Rail and Texmaco
(resulting in Texmaco Rail company), will enable Texmaco to become total and only complete rail solution provider in the sector.
Strengths:
Indias largest wagon manufacturer & leader in Steel Castings. Company has strategic alliance with large global rail companies for exports,
wagon leasing & technical collaboration.
Company has strong technical tie-ups with global players to provide hi-tech products and services to the Indian Rail network.

Texmaco specializes in overhead electrification solutions for the railways and has strong credentials in this specialized field, which is reflected in

execution of more than 400 electrification projects pan India Concerns:

Key Financials (Rs. Cr.) FY 12 FY 13 FY14 FY15 FY16 Delay in order inflow continue to affect the companys

Total Income 793.04 860.38 469.28 462.27 1046.06 earnings. Texrail had received orders for only 1,300
wagons in the current year compared with 2,300 last
OPM (%) 19.38 17.60 8.20 8.81 7.19
year.
PAT 93.06 94.27 16.97 13.74 13.23
Reversal in raw material costs especially commodity
Equity 18.20 18.20 18.20 21.01 21.03 price and higher base in H2 FY16, could impact
Reserves 490.42 562.71 573.87 872.41 888.35 company earnings in short term.
Debt 69.14 99.04 98.50 103.82 400.33 Outlook: Texmaco Rail, a key player in the sector is expected
EPS (Rs.) 4.43 4.48 0.81 0.65 0.63 to benefit from the government's plans to spend around Rs.
Book Value(Rs.) 24.19 27.62 28.15 42.48 43.24 8.5 lakh crore in the next 5 years on improving and
Dividend (%) 100.00 100.00 25.00 25.00 25.00 modernizing railways. After strategic acquisition of Kalindee
Promoter H(%) Last 5 Qtrs 54.81 54.75 54.74 54.74 54.47 Rail, Texmaco has recently acquired Bright Power Projects,
to foray into the high growth overhead electrification solutions for the railways sector, which will enable it to further strengthen its position towards
becoming a one stop integrated total rail solutions provider. Further, company is expected to benefit from the recently announced new policy initiatives in
the railway budget including investment through PPP model, FDI in railways, suburban corridor projects, dedicated freight corridor and Wagon leasing
scheme etc. Companys focus on Steel Foundry, improving performance in Hydro mechanical Equipment division, fast tracking EMU coach manufacturing
unit and good growth in export business would shield it against any weakness in Wagons orders from Indian Railways. On a whole, with strong balance
sheet, better operating efficiency and turnaround in operations, Texmaco is expected to be a decent investment option for long term investors.

www.zenmoney.com Please refer Research Disclaimer at http://www.zenmoney.com/RAdisclaimer.pdf 8

 Jamna Auto Industries Limited
Company Profile: Jamna Auto Industries Limited (JAI), incorporated in the year 1965, is in the business of manufacturing of Automotive
suspension which includes Parabolic/ Tapered leaf spring and Lift axle. It is the largest manufacturer of Tapered Leaf and Parabolic Springs for
Commercial Vehicles (CVs) in India with an installed capacity of 144,000 mtpa. Jamna has built up a strong dealer network, through its subsidiary
- Jai Suspension Systems LLP (JSS LLP), all over the country to support growing domestic After Market demand. The company sells springs under
the "JAI" brand in the aftermarket and its products command premium pricing. The manufacturing facilities are located at Yamuna Nagar
(Haryana), Chennai, Malanpur (Madhya Pradesh), Chinchwad (Pune, Maharashtra) and Jamshedpur.
Strengths:
Jamna Auto is the world's third largest leaf spring manufacturer. Domestically, company dominates the parabolic spring type suspension with
a market share of 90-95% and enjoys superior margins than conventional leaf spring suspension.
Company has six facilities located close to major CV manufacturing hubs in India and this is supporting Jamna to gain a significant share of the
business (SOB) with leading CV OEMs.
Company has forayed into the air suspension and lift axle segments via a technology tieup with Ridewell, USA.
Key Financials (Rs. Cr.) FY 12 FY 13 FY14 FY15 FY16 Concerns:
Total Income 1130.45 993.52 839.46 1107.08 1264.66 Intensified competition in the sector limits pricing
OPM (%) 9.04 8.84 7.94 8.72 13.04 power. Further, growth of CVs directly depends on
PAT 42.19 27.73 13.84 29.38 71.50 pace of economic recovery.
Equity 42.90 43.00 41.25 39.62 39.72 Outlook: Jamna Auto is the largest player in the domestic
Reserves 113.17 131.50 140.35 156.80 202.46leaf spring industry with significant market share that caters
Debt 182.74 166.19 125.28 64.27 15.76to almost all the CV makers such as Tata Motors, Ashok
EPS (Rs.) 5.31 3.49 1.74 3.70 9.00Leyland, Bharat Benz, Isuzu, Volvo and Mahindra and
Book Value (Rs.) 18.19 20.29 22.01 24.79 30.49Mahindra. The expected higher industrial growth and higher
Dividend (%) 35.00 20.00 10.00 22.00 55.00agricultural output from the monsoon would keep demand
Promoter H(%) Last 5 Qtrs 48.01 47.91 47.91 47.88 47.88for freight transport strong, and hence demand for CVs.
Jamna Auto would be a key beneficiary of any recovery in the CV cycle in India. Further, on capacity expansions, company is setting up an assembly
plant in Lucknow for Tata Motors and plans are under consideration for a new plant in Indore for Eicher Motors. JAL aims for 10% export revenue in
the next few years from 2% currently, and its export focused Hosur plant will start commercial production in Q1FY18. To expand its product portfolio,
company recently unveiled plans to manufacture stabilizer bars which are used along with parabolic springs. Also, implementation of GST would
hasten companys aftermarket progress. All these factors coupled with financial consistency and reasonable valuations makes Jamna Auto, a decent
bet for long term investors.

DISCLAIMER
This document was prepared by Zen Securities Ltd (ZSL), on the basis of publicly available information, internally developed data and other
sources believed to be reliable. The material contained herein is for information only and under no circumstances should be deemed as an offer to
sell or a solicitation to buy any security. ZSL or its employees, may, from time to time have positions in the stocks mentioned in this document. While
all care has been taken to ensure that the facts are accurate and the opinions are reasonable, ZSL shall not be liable for any loss or damage
howsoever arising as a result of any person acting or refraining from acting in reliance on any information contained therein. Please refer Research
Disclaimer at http://www.zenmoney.com/RAdisclaimer.pdf

www.zenmoney.com Please refer Research Disclaimer at http://www.zenmoney.com/RAdisclaimer.pdf 9