AMP

STRICTLY CONFIDENTIAL

22 November 2018
ANTIQUE’S MORNING PRESENTATION
FROM THE RESEARCH DESK
Market Snapshot
Global Indices Closing % Chg % YTD
ANALYST MEET UPDATE
Dow Jones 24,465 (0.0) (1.0)
Tech Mahindra Limited NASDAQ 6,972 0.9 1.0
Striving for profitable sustainable growth FTSE 7,050 1.5 (8.3)
MANAGEMENT MEET UPDATE CAC 4,976 1.0 (6.3)
DAX 11,244 1.6 (13.0)
TCNS Clothing Company Limited
Russia 1,127 0.9 (2.3)
Perfect combination of brand and retail
Bovespa 87,269 (0.7) 14.2
Nikkei 21,508 (0.4) (5.4)
Global News Hang Seng 25,971 0.5 (13.2)
Shanghai Composite 2,652 0.2 (19.8)
„ U.S stocks finished higher on Wednesday, recouping some losses from the
worst start to a Thanksgiving week in nearly half a century. The tech-dominant Indian Indices Closing % Chg % YTD
Nasdaq was the best-performing major index, closing up 0.9%, the S&P Sensex 35,200 (0.8) 3.4
500 added 0.3% and the Dow Jones Industrial Average DJIA, +0.00% lagged
Nifty 10,600 (0.5) 0.7
to 24,465, finishing the session unchanged. In economic news, jobless claims
MSCI India 533 (0.5) (12.9)
rose to 224,000 and durable goods orders fell 4.4%.
CNX Midcap 17,507 0.5 (17.2)
„ Asian stock markets mostly fell early but improved from the worst levels of the BSE Smallcap 14,414 0.1 (25.0)
day, including a flip to positive territory in Hong Kong, as the region’s trading
tracked the drubbing Tuesday for U.S. stocks and oil futures. Japan’s Nikkei Flows (USDm) Prev. Day MTD
was down 0.4% to 21,507.54, moving close to its lowest point in a month as FII - 723
energy and electronics stocks slid. Hong Kong stocks extended losses initially
though the Hang Seng Index closed up 0.5% to 25,971.47 after dropping Provisional flows (USDm)
more than 1% early on. In mainland China, the Shanghai Composite FIIs (26,103)
(SHCOMP, +0.21%) and the smaller-cap Shenzhen Composite (399106, Local 9,587
+0.54%) were both up slightly after early weakness.
Volumes USDbn % Chg
Sector & Corporate News Cash (NSE + BSE) 4.4 6.4
F&O (net) 130.5 41.5
„ Oil and Natural Gas Corporation’s (ONGC) natural gas production
has hit an all-time high of about 70 million standard cubic meters (mmscmd)
FII F&O Stock Fut Index Fut
per day as it doubles up efforts to raise domestic output to curb imports. The
company has produced about 64 mmscmd of gas in November last year Net ($ mn) (16) (99)
and this year the output is close to touching 70 mmscmd. Open Int (%) 0.6 1.1

„ Indiabulls Housing Finance has raised INR236bn in the last 2 months ADR/GDR Gainers Last % Chg
from 32 financial institutions in various debt instruments, securitization and Tata Motors 13.0 3.2
sanctions. Of the total of INR236bn raised, INR 174bn is in the nature of long SBI 40.6 2.5
term debt. The fund raising is in line with the company's objectives of ICICI Bank 10.0 1.8
maintaining high liquidity and sustainable growth.
HDFC 96.3 1.5
„ Maruti Suzuki India has launched the stylish next gen Ertiga. It comes Wipro 5.1 1.0
with aspirational exterior design and plush dual tone interiors. A new K15
Petrol engine now powers the next gen Ertiga with 13% more power and 6% ADR/GDR Losers Last % Chg
improved torque output. The latest offering from Maruti Suzuki is conceptualised Reliance 31.6 (1.1)
on Suzuki’s acclaimed 5th generation Heartect platform. Infosys 9.1 (0.2)

„ Adani Gas has bagged authorization from the Petroleum and Natural Gas
Regulatory Board, Government of India to expand its city gas footprint in 13
new Geographical Areas (GAs) in the recently concluded 9th round of CGD
bidding. In addition, the company has also won 9 GAs in its joint venture
company with Indian Oil Corporation, i.e. Indian Oil - Adani Gas (IOAGPL).

Please refer to disclosures at the end of the Research Report

ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 2

Sectoral indices Delivery Spike

Closing % Chg % MTD % YTD Company Volume Spike (%) Chg (%)
BSE Auto 20,542 (0.1) 3.3 (23.2) Dr Reddy's Laboratories Ltd 1,439,162 875% 6.49%
BSE Bank 29,534 0.6 4.1 2.3 Tata Consultancy Services Ltd 2,158,795 265% -3.53%
BSE Cap Goods 18,408 (0.6) 5.3 (3.8) UltraTech Cement Ltd 150,877 243% 1.69%
BSE Cons dur 20,239 0.7 5.7 (10.8) Hero MotoCorp Ltd 139,048 233% -1.62%
BSE FMCG 11,373 (0.3) 2.2 6.3 Ambuja Cements Ltd 820,151 219% 1.21%
BSE IT 13,457 (2.9) (7.4) 19.3 Lupin Ltd 870,375 199% 0.11%
BSE Health 14,383 1.0 (2.3) (2.8) Aurobindo Pharma Ltd 1,187,862 193% 3.18%
BSE Metal 12,258 (0.8) (2.1) (18.0) Power Grid Corp of India Ltd 1,744,937 193% -3.34%
BSE Oil 13,537 (0.1) 2.2 (16.9) LIC Housing Finance Ltd 1,808,058 175% 2.12%
BSE Power 1,936 (1.0) (1.1) (18.7) Infosys Ltd 8,382,817 154% -3.48%
BSE PSU 7,109 0.2 0.4 (22.5)
BSE Realty 1,778 1.5 5.8 (31.8)
BSE TECK 6,822 (2.5) (5.7) 6.5 Derivatives Update
Long Build Up
Company Last % Chg % Chg OI OI (in 000)
DALMIABHA 2,342 3.8 22.5 620
FEDERALBNK 83 4.5 9.7 52,277
SUZLON 6 2.8 3.6 326,104
Nifty Outperformers
VOLTAS 560 2.5 3.5 7,552
Price % Chg % MTD % YTD
Short Build Up
Dr. Reddy'S Laboratories 2,602 6.5 2.3 7.8 Company Last % Chg % Chg OI OI (in 000)
Yes Bank Ltd 198 3.1 5.3 (37.1) TATASTEEL 553 (2.0) 10.8 39,184
Grasim Industries Ltd 864 3.1 3.6 (25.9) TCS 1,816 (3.5) 7.1 11,382
Bajaj Finserv Ltd 5,852 2.9 8.3 11.9 ADANIPOWER 47 (1.8) 6.3 164,380
Upl Ltd 779 2.6 15.6 2.2 BAJAJ-AUTO 2,613 (2.3) 5.5 2,362
Axis Bank Ltd 627 2.3 7.6 11.2
Short Covering
Bajaj Finance Ltd 2,431 2.1 2.0 38.4
Company Last % Chg % Chg OI OI (in 000)
EXIDEIND 251 4.7 (8.4) 7,564
Nifty Underperformers CANFINHOME 265 2.8 (4.2) 3,998
Price % Chg % MTD % YTD GRASIM 864 2.8 (3.1) 8,314
Tata Consultancy Svcs Ltd 1,812 (3.5) (6.5) 34.2 DRREDDY 2,600 6.3 (3.0) 3,842
Infosys Ltd 619 (3.5) (9.8) 19.8 Long Unwinding
Power Grid Corp Of India Ltd 182 (3.3) (2.1) (9.1) Company Last % Chg % Chg OI OI (in 000)
Tech Mahindra Ltd 691 (2.7) (7.2) 37.0 JETAIRWAYS 299 (2.0) (4.9) 6,125
Hcl Technologies Ltd 985 (2.4) (6.7) 10.6 BEML 748 (1.0) (4.1) 1,466
Bajaj Auto Ltd 2,605 (2.3) 0.4 (21.9) LT 1,406 (0.7) (1.3) 10,006
Wipro Ltd 314 (2.2) (5.1) (0.0) TATAPOWER 78 (0.3) (1.1) 48,780

Bulk Deals
Date Security Name Client Name Buy/Sell Qty Price
21-Nov-18 Prabhat Telecoms (India) Ltd Arihant Multi Commercial Limited SELL 80,000 268.75
21-Nov-18 GSS Infotech Limited Sarvottam Securities Private Limited BUY 100,000 123.00
21-Nov-18 Veto Switchgear Cable Ltd Pushpa Devi Gurnani BUY 155,000 74.69
21-Nov-18 GBL Industries Ltd Highgrowth Vincom Private Limited BUY 110,256 55.99
21-Nov-18 Prabhat Telecoms (India) Ltd Mansukh Stock Brokers Limited BUY 12,292 268.75
21-Nov-18 Umiya Tubes Ltd Beeline Broking Limited SELL 70,000 24.00
21-Nov-18 Silgo Retail Limited Overskud Multi Asset Management Private Limited SELL 45,000 36.25
21-Nov-18 S K S Textiles Limited Aryaman Capital Markets Limited SELL 36,000 42.01
21-Nov-18 S K S Textiles Limited Overskud Multi Asset Management Private Limited BUY 36,000 42.00
21-Nov-18 Umiya Tubes Ltd RCSPL Multicommodities Private Limited BUY 50,041 23.13
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 3

Nifty Nifty P/E Nifty P/B

12000 3.5
25
11000
23 3.0
10000
9000 21
8000 2.5
19
7000
6000 17 2.0
Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18
Source: Bloomberg

Sensex FII Provisional Flows (INRbn) DII Provisional Flows (INRbn)

40000 100 60
37000 80 40
60
34000 40 20
31000 20 0
28000 0 -20
-20
25000 -40 -40
22000 -60 -60
Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 Nov-16 May-17 Nov-17 May-18 Nov-18 Nov-16 May-17 Nov-17 May-18 Nov-18
Source: Bloomberg

Economy, Money & Banking Commodities Update

Forex Rate Last % Chg % MTD % YTD Commodities Last % Chg % MTD % YTD
INR~USD 71.5 0.3 3.5 (10.6) Gold ($/Ounce) 1,226 (0.0) 0.9 (5.9)
INR~EUR 81.7 0.2 2.7 (6.3) Crude Oil ($/Bl) 55 0.0 (16.5) (5.4)
INR~GBP 91.5 0.4 3.2 (5.7) Aluminium ($/t) 1,943 0.7 0.4 (13.9)
Copper ($/t) 6,269 1.0 3.9 (13.0)
Bond Market Last Chg (bps) MTD (bps) YTD (bps) Zinc ($/t) 2,663 0.7 4.3 (20.2)
10 Year Bond 7.8 0 (6) 47 Lead ($/t) 1,981 2.1 4.2 (20.3)
Interbank call 6.5 - 15 35 Nickel ($/t) 10,952 (0.7) (4.1) (13.8)

INR/USD Gold and silver prices (USD/Tr.Oz) Crude prices (USD/barrel)

75 1400 22 100
73 90
1300 20
80
71
1200 18 70
69
67 1100 16 60
50
65 1000 14 40
63 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 30
Nov-17 Mar-18 Jul-18 Nov-18
Gold (LHS) Silver (RHS) Nov-14 Nov-15 Nov-16 Nov-17 Nov-18
Source: Bloomberg

Inflation vs 10 year yield Nifty premium/discount NSE volatility index (%)

10 25 21.6 23
8 21
20 15.8
6 13.8 19
4 15 17
2 10 15
0 5.0 4.8 13
5
Oct-17

Dec-17

Feb-18

Jun-18

Oct-18
Aug-17

Apr-18

Aug-18

11
4-Oct
10-Oct
16-Oct
22-Oct
28-Oct
3-Nov
9-Nov
15-Nov
21-Nov
4-Sep
10-Sep
16-Sep
22-Sep
28-Sep
23-Aug
29-Aug

0
15-Nov 16-Nov 19-Nov 20-Nov 21-Nov
WPI Inflation (%) 10 Yr Yield (%)
Source: Bloomberg
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 4

Current Reco : BUY ANALYST MEET UPDATE

Previous Reco
CMP
: BUY
: INR691
Tech Mahindra Limited
Target Price : INR870 Striving for profitable sustainable growth
Potential Return : 26%
We attended TechM's Analyst day where the company showcased it
capabilities and outlined its business strategy. Company outlined its Run-
Change-Grow strategy which revolves around Digital transformation.
Govind Agarwal Company is witnessing better Deal pipeline in Change and Grow (>50%)
+91 22 4031 3395 compared to Run (<50%). The company is building an organization that focuses
govind.agarwal@antiquelimited.com
on sustained and profitable growth. Company is taking a few bets in newer
Heli Modi technology areas of IoT, AI, Network, Block chain, Customer experience and
+91 22 4031 3447 Cyber security which they think is relevant for the future of the business. Telecom
heli.modi@antiquelimited.com which has been a drag in the past is expected to grow with additional benefits
coming from 5G opportunities. Company is optimistic on 5G opportunities
playing out massively for them; however the 5G implementation cycle will be
gradual. On M&A front company outlined that acquisitions would not be made
Market data
at the cost of margins and company will continue to focus on synergistic
Sensex : 35,200
acquisitions. On margin front company is certain of gradual improvement
Sector : IT
going forward through the levers of a) higher mix of Digital revenues, b)
Market Cap (INRbn) : 677.6
Market Cap (USDbn) : 9.482
improvement in margins of portfolio companies, c) automation and, d) adoption
O/S Shares (m) : 981.1 of new age delivery model. Company is also focusing on generating healthy
52-wk HI/LO (INR) : 781/463 cash flows and CFO/EBITDA has improved from ~40% in FY14 to 80% in FY18
Avg Daily Vol ('000) : 3,214 and dividend payout has increased to 40%+.
Bloomberg : TECHM IN
Overall company is optimistic in both the Telecom and Enterprise vertical.
Source: Bloomberg
Company expects mid single digit growth in Telecom (5G contribution is
Valuation additional) and 8-10% CC growth in the enterprise vertical. We believe
FY19e FY20e FY21e
additional trigger from 5G to Telecom vertical is a key positive. On margin
EPS (INR) 51.9 57.3 62.0
front company expects gradual improvement from 18.8% in 2QFY19. We see
P/E(x) 13.3 12.1 11.1
an upside risk to both our revenue and margin numbers led by better than
P/BV(x) 2.7 2.3 1.9
expected growth from Telecom vertical in FY20 and beyond. We reiterate our
EV/EBITDA(x) 8.3 7.4 6.3
Dividend Yield (%) 1.2 1.2 1.2
BUY rating with a TP of INR870. We believe the company is on good revenue
Source: Bloomberg
trajectory with further margin improvement. The stock is trading at attractive
valuations of 12x FY20e EPS which we believe is attractive given 18%/13%
Returns (%)
CAGR in EBIT/EPS over FY18-FY21E.
1m 3m 6m 12m
Absolute (0) (3) 1 40 5G roll outs to boost Telecom revenues
Relative (3) 6 (1) 33 Telecom vertical has returned to growth trajectory for Tech M and company has won deals
Source: Bloomberg
worth TCV of USD 500mn in Telecom vertical in 1HFY19. The company is seeing huge
Shareholding pattern opportunities in 5G rollouts and believes 5G is more software driven than hardware. The
company believes 5G adoption implementation cycles may be gradual but certain and will
Promoters : 36%
Public : 64%
start flowing in revenues FY20 onwards. Qualified deal pipeline in 5G is up 20% YoY for
Others : 0% TechM. Company is creating a seamless network infrastructure in 5G and believes 5G
implementations will be phased. Company believes they are well positioned to win in 5G led
Source: Bloomberg
by the right platform, partnership and people creation on their part.
Price performance vs Nifty
Enterprise: Chasing growth across verticals
160
On the enterprise front company expects growth of 8-10% in CC for FY19 and beyond. On
140
120 BFS side the company continues to invest in new technology areas and has a strong sub-
100 vertical focus. In Insurance company will continue to look at scaling capabilities in digital
80 transformation and has started making investments around the same. In manufacturing the
Nov-17 Mar-18 Jul-18 Nov-18 company is taking four big bets in the form of smart products, smart manufacturing, customer
Tech Mahindra NIFTY centricity and connected aftermarkets.
Source: Bloomberg Indexed to 100
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 5

Vertical-wise commentary
„ Manufacturing
Company is accelerating growth through 6 pillar of strategy of
a) Sub-virtualization - Creating a sub vertical of each USD100Mn+ business. Amongst sub
verticals company expects Automotives to hit revenues of USD500mn soon
b) Geo-specific focus - Company is increasing focus on large manufacturing GDP markets
of Japan, China, India, Germany, Nordics, USA and Mexico.
c) 4-big bets solutions - Company is taking big bets on solutions and working with top 50
manufacturing clients.
d) Digital technologies - Focusing on new technology areas of IoT, Analytics, Electronics,
Mobility, Cloud and ERP.
e) Start-up partnerships - working with 15 start ups with co-investments in 3.
f) Product alliances- Special focus on individual product alliance.
„ BFS
In BFS company is accelerating growth through
a) Digital CX - Company is focusing on building niche capabilities and Digital transformation
use cases by leveraging portfolio companies such as Sofgen, BIO and Target.
b) Platforms - Company is creating strong sub vertical focus, traction in Digital solutions and
platforms. Focus areas include- RPA in banking, Loan origination, Automation in GRC,
payment transformation and Omni channel banking.
c) Innovation is driving IP - Company is partnering and making investments in micro-vertical
business and use cases leveraging AI, Machine learning and block chain.
d) Core transformation - Focus on cloud implementation and next gen IMS.
„ Healthcare and life sciences
The HLS industry is at the cusp of evolution led by a) convergence of entities and emergence
of eco systems b) strategic shift in business model from B2B to B2C and c) Digital re-invention
of value chains. HLS vertical continues to do well for Tech M with 3000+ associates and
600+ domain experts. In healthcare company is increasing focus on key customers, sub-
verticals and on leveraging digital offerings.

Financial Summary
Year ended Mar/2017 Mar/2018 Mar/2019e Mar/2020e Mar/2021e
Revenues(INRm) 291,408 307,730 346,718 373,514 397,887
EBITDA(INRm) 41,844 47,171 64,270 69,017 73,074
EBITDA Margin (%) 14.4 15.3 18.5 18.5 18.4
PAT(INRm) 28,154 38,001 46,406 51,074 52,061
PAT growth (%) (12.1) 35.1 21.5 10.4 8.3
EPS (INR) 31.6 42.7 51.9 57.3 62.0
EPS growth (%) (12.1) 35.1 21.5 10.4 8.3
P/E(x) 21.9 16.2 13.3 12.1 11.1
P/BV(x) 3.7 3.3 2.7 2.3 1.9
EV/EBITDA(x) 13.7 12.0 8.3 7.4 6.3
Source: Company, Antique
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 6

Expect revenue momentum to pick up led by recovery

in Telecom and growth in Enterprise Expect 320bps EBITDA margin improvement in FY19E
20% 17.7% 18.3% 25%
22.2%
18% 23% 20.7%
16% 21%
18.3% 18.5% 18.5% 18.4%
14% 19%
16.4%
12% 10.2% 9.6% 17% 15.3%
10% 14.4%
7.8% 7.1% 6.5% 15%
8% 6.9%
13%
6% 4.4%
11%
4%
9%
2%
7%
0%
5%

FY19E

FY20E

FY21E
FY13

FY14

FY15

FY16

FY17

FY18

FY19E

FY20E

FY21E
FY13

FY14

FY15

FY16

FY17

FY18
Revenue grow th (USD mn) EBITDA margins

Source: Company, Antique Source: Company, Antique

Enterprise vertical revenues impacted temporarily in 2QFY19;

Telecom vertical has recovered after several quarters of decline outlook continues to remain positive

6.4%
9%

6.3%

6.3%
4.3%

5.6%
6%

5.1%
2.6%

2.3%

4.4%
7%

4.2%
1.7%

3.8%
4%

3.3%
0.4%
0.2%
0.0%

0.0%

2.7%
5%

1.8%

1.8%
2%

1.6%
0% 3%
-0.8%

-2% 1%
-1.8%
-2.5%
-2.7%

-4% -1%
-4.2%

-6% -3%
1QFY19 -6.3%

2QFY19 -3.6%
-8%
-5%
-7%
1QFY16

2QFY16
3QFY16

4QFY16

1QFY17

2QFY17

3QFY17
4QFY17

1QFY18

2QFY18

3QFY18

4QFY18

2QFY19

1QFY16

2QFY16
3QFY16

4QFY16

1QFY17

2QFY17

3QFY17
4QFY17

1QFY18

2QFY18

3QFY18

4QFY18
1QFY19
QoQ grow th (Telecom) QoQ grow th (Enterprise)

Source: Company, Antique Source: Company, Antique

Improvement in EBITDA margins to continue, though

the quantum of improvement will be lower USD revenues and revenue growth
22%
10.0%

10.6%
10.3%

10.0%

10.0%
9.8%
18.8%

1,300 12.0%
8.3%
17.5%

7.6%

10.0%
16.9%

19% 1,200
16.6%

16.7%

16.4%
16.3%

6.1%
15.7%

1,100 8.0%
14.9%
14.9%

14.5%
14.4%

4.3%
3.9%

16% 6.0%
3.3%

1,000
12.7%
12.0%

900 4.0%
13%
1,015

1,023

1,032
1,072

1,116

1,131

1,138
1,179

1,209

1,244

1,224
1,218

800 2.0%

700 0.0%
10%
3QFY16

4QFY16
1QFY17

2QFY17

3QFY17

4QFY17
1QFY18

2QFY18

3QFY18

4QFY18
1QFY19

2QFY19
1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

4QFY17

1QFY18

2QFY18

3QFY18

4QFY18

1QFY19

2QFY19

EBITDA margin (%) Revenues (USD mn) USD revenue grow th YoY (RHS)

Source: Company, Antique Source: Company, Antique

ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 7

Key operating metric

Q216 Q316 Q416 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
Revenue (USD m) 1,011 1,015 1,023 1,032 1,072 1,116 1,131 1,138 1,179 1,209 1,244 1,224 1,218
QoQ growth (%) 2.2 0.4 0.8 0.9 4.0 4.1 1.4 0.6 3.6 2.5 2.9 (1.6) (0.5)
Geography-wise (%)
America 48.9 47.8 46.8 49.0 48.3 46.7 45.1 46.8 45.3 46.9 47.4 48.2 47.0
Europe 29.3 28.9 28.5 28.3 29.7 29.4 29.6 29.8 30.0 29.8 29.6 30.0 29.6
ROW 21.8 23.3 24.7 22.7 22.0 23.9 25.3 23.4 24.7 23.3 23.0 21.9 23.4
Vertical break up (%)
Telecom 52.9 51.3 50.9 49.2 48.4 47.3 46.3 45.2 43.7 42.8 41.6 39.6 41.5
Manufacturing 16.7 17.1 17.1 18.1 19.2 18.4 19.2 19.3 19.0 19.1 19.3 20.1 20.1
TME 8.2 7.4 7.5 7.5 7.2 6.4 6.2 6.0 5.9 6.5 7.3 7.2 7.3
BFSI 9.6 9.8 10.6 11.3 11.5 13.1 14.1 14.4 14.1 13.3 13.0 13.6 13.5
Retail, T&L 6.0 6.8 6.2 6.5 6.8 7.6 6.5 6.8 7.2 7.1 6.2 6.1 6.5
Others 6.6 7.6 7.7 7.3 6.8 7.1 7.7 8.3 9.9 11.3 12.6 13.4 11.2
Revenue by location (%)
Onsite 61.7 62.7 63.2 63.4 63.5 63.9 64.3 63.7 64.1 65.8 67.0 66.6 64.5
Offshore 38.3 37.3 36.8 36.6 36.5 36.1 35.7 36.3 35.9 34.2 33.0 33.4 35.5
Client composition (%)
Top 5 31.5 28.3 27.9 28.8 28.5 27.8 26.6 25.9 24.8 23.2 23.2 21.9 23.3
Top 10 43.3 39.5 39.0 40.0 39.9 38.4 37.6 36.3 35.1 33.2 32.7 32.5 32.7
Beyond Top 10 56.7 60.5 61.0 60.0 60.1 61.6 62.4 63.7 64.9 66.8 67.3 67.5 67.3
Top 20 56.0 52.3 51.9 52.6 51.7 50.5 49.0 48.5 46.2 45.0 45.7 46.2 45.6
Client data
Active client (nos.) 788 801 807 818 825 837 843 864 885 903 913 926 930
US$ 1 Mn Clients 298 326 319 317 341 356 354 377 390 389 392 396 407
US$ 5 Mn Clients 102 105 112 120 120 128 134 139 147 154 156 154 157
US$ 10 Mn Clients 62 63 63 64 66 65 71 74 81 83 85 86 86
US$ 20 Mn Clients 36 37 40 42 40 38 36 41 40 40 44 47 45
US$ 50 Mn Clients 14 14 14 14 14 14 14 14 14 16 16 16 17
Utilization (IT Services and Consulting)
Including trainees 77.0 77.0 77.0 78.0 78.0 77.0 77.0 77.0 81.0 83.0 84.0 81.0 81.0
Excluding trainees 79.0 80.0 80.0 80.0 82.0 83.0 81.0 81.0 81.0 83.0 84.0 84.0 83.0
Employee Metrics
Software professionals 72,645 72,828 72,125 73,590 78,404 80,858 82,403 78,996 75,587 73,460 72,437 72,462 72,534
BPO professionals 26,513 28,279 27,254 27,326 27,669 29,372 28,414 30,322 35,287 35,496 34,190 34,700 39,407
Sales & support 6,077 6,030 6,053 6,300 6,813 6,865 6,876 6,662 6,351 6,285 6,180 6,390 6,450
Total 105,235 107,137 105,432 107,216 112,886 117,095 117,693 115,980 117,225 115,241 112,807 113,552 118,391
Net additions - consolidated 1,562 1,902 (1,705) 1,784 5,670 4,209 598 (1,713) 1,245 (1,984) (2,434) 745 4,839
Attrition % 20.0 20.0 21.0 21.0 19.0 18.0 17.0 17.0 16.0 17.0 18.0 19.0 20.0
Source: Company, Antique
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 8

Financials (Consolidated)
Profit and loss account (INRm) Cash flow statement (INRm)
Year-ended March 31 FY17 FY18 FY19e FY20e FY21e Year-ended March 31 FY17 FY18 FY19e FY20e FY21e
Net Revenue 291,408 307,730 346,718 373,514 397,887 PBT 38,530 48,788 60,958 66,982 72,523
Op. Expenses 249,564 260,559 282,449 304,496 324,813 Depreciation & amortisation 9,781 10,850 11,975 12,333 13,135
EBITDA 41,844 47,171 64,270 69,017 73,074 Interest expense 1,286 1,624 1,305 1,398 1,398
Depreciation 9,781 10,850 11,975 12,333 13,135 (Inc)/Dec in working capital 5,438 12,018 (14,633) (5,217) (4,716)
EBIT 32,064 36,322 52,295 56,685 59,940 Tax paid (10,795) (14,017) (14,719) (16,076) (17,405)
Other income 7,776 14,093 9,968 11,695 10,941 Less: Interest/Div. Income Recd. (1,248) (1,455) (9,968) (11,695) (13,981)
Interest Exp. 1,286 1,624 1,305 1,398 1,398 Other operating Cash Flow (2,278) (2,207) (250) (132) (315)
Reported PBT 38,554 48,791 60,958 66,982 69,483 CF from operating activities 40,714 55,601 34,668 47,593 50,638
Tax 10,021 10,925 14,719 16,076 17,405 Capital expenditure (21,193) (20,247) (11,658) (22,333) (8,416)
Reported PAT 28,533 37,865 46,239 50,907 52,077 Inc/(Dec) in investments (10,487) (24,859) 14,449 - (1)
Minority Int./Profit (loss) From Asso. 379 (136) (167) (167) 16 Add: Interest/Div. Income Recd. 1,172 1,455 9,968 11,695 13,981
Net Profit 28,154 38,001 46,406 51,074 52,061 CF from investing activities (30,508) (43,651) 12,759 (10,637) 5,565
Adjusted PAT 28,154 38,001 46,406 51,074 52,061 Inc/(Dec) in share capital 345 - - - -
Adjusted EPS (INR) 31.6 42.7 51.9 57.3 62.0 Inc/(Dec) in debt (2,551) 5,065 - - -
Dividend Paid (13,503) (9,650) (9,667) (9,760) (9,760)
Balance sheet (INRm) CF from financing activities (15,709) (4,585) (9,667) (9,760) (9,760)
Year-ended March 31 FY17 FY18 FY19e FY20e FY21e Net cash flow (5,503) 7,364 37,760 27,196 46,442
Share Capital 4,388 4,417 4,417 4,417 4,417 Opening balance 41,716 32,185 39,550 77,309 104,505
Reserves & Surplus 159,984 184,011 221,805 264,385 311,175 Closing balance 36,213 39,550 77,309 104,505 150,948
Networth 164,372 188,428 226,222 268,802 315,592
Debt 12,195 17,260 17,260 17,260 17,260 Growth indicators (%)
Minority Interest 4,641 5,091 4,674 4,375 4,076 Year-ended March 31 FY17 FY18 FY19e FY20e FY21e
Net deferred Tax liabilities (2,674) (5,766) (5,766) (5,766) (5,766) Revenue(%) 10.0 5.6 12.7 7.7 6.5
Capital Employed 178,534 205,013 242,390 284,670 331,162 EBITDA(%) (3.4) 12.7 36.2 7.4 5.9
Gross Fixed Assets 88,176 109,363 119,363 129,363 73,689 Adj PAT(%) (9.6) 35.0 22.1 10.1 1.9
Accumulated Depreciation 50,865 61,714 73,689 73,689 55,674 Adj EPS(%) (12.1) 35.1 21.5 10.4 8.3
Capital work in progress 3,729 2,399 3,000 3,000 3,000
Net Fixed Assets 41,040 48,990 48,674 58,674 53,955 Valuation (x)
Goodwill 26,279 27,727 27,727 27,727 27,727 Year-ended March 31 FY17 FY18 FY19e FY20e FY21e
Investments 23,955 48,813 34,114 34,114 33,982 P/E 21.9 16.2 13.3 12.1 11.1
Non Current Investments 2,308 14,364 14,114 14,114 13,982 P/BV 3.7 3.3 2.7 2.3 1.9
Current Investments 21,647 34,449 20,000 20,000 20,000 EV/EBITDA 13.7 12.0 8.3 7.4 6.3
Current Assets, Loans & Adv. 166,717 173,077 233,583 268,314 321,913 EV/Sales 2.0 1.8 1.5 1.4 1.2
Inventory 611 659 600 600 600 Dividend Yield (%) 1.3 1.1 1.2 1.2 1.2
Debtors 77,661 64,979 99,200 106,866 113,840
Cash & Bank balance 32,186 30,443 76,402 103,466 150,093
Financial ratios
Loans & advances and others 56,259 76,996 57,381 57,381 57,381
Year-ended March 31 FY17 FY18 FY19e FY20e FY21e
RoE (%) 18.3 21.5 22.4 20.6 17.8
Current Liabilities & Prov. 79,457 93,593 101,707 104,157 106,414
RoCE (%) 24.2 26.3 27.8 25.9 23.0
Liabilities 23,117 20,368 31,383 33,833 36,090
Asset/T.O (x) 2.5 2.4 2.2 1.9 1.6
Provisions 56,340 73,225 70,324 70,324 70,324
Net Debt/Equity (x) (0.3) (0.3) (0.3) (0.4) (0.5)
Net Current Assets 87,260 79,484 131,876 164,157 215,499
EBIT/Interest (x) 31.0 31.1 47.7 48.9 50.7
Application of Funds 178,534 205,014 242,390 284,671 331,162

Per share data Margins (%)

Year-ended March 31 FY17 FY18 FY19e FY20e FY21e Year-ended March 31 FY17 FY18 FY19e FY20e FY21e
EBITDA Margin(%) 14.4 15.3 18.5 18.5 18.4
No. of shares (m) 890 890 890 890 890
EBIT Margin(%) 11.0 11.8 15.1 15.2 15.1
Diluted no. of shares (m) 890 890 890 890 890
PAT Margin(%) 9.4 11.8 13.0 13.3 12.7
BVPS (INR) 184.8 211.8 254.3 302.2 354.6
CEPS (INR) 43.1 54.8 65.4 71.1 73.3 Source: Company, Antique

DPS (INR) 9.0 7.5 8.0 8.0 8.0

Source: Company, Antique
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 9

NOT RATED MANAGEMENT MEET UPDATE

CMP : INR697
TCNS Clothing Company Limited
Perfect combination of brand and retail
Abhijeet Kundu
+91 22 4031 3430
We recently met the management of TCNS Clothing Company Ltd (TCNS). From
abhijeet.kundu@antiquelimited.com
our interaction, we understand that the company's focus on product
development differentiates it from competition. TCNS's anthropometric studies
Varun Singh
+91 22 4031 3416 since 2002 have helped the company to sharpen its product offering (on
varun.singh@antiquelimited.com size). Currently TCNS is working on reducing its lead time from product
development stage to product placement across stores. The company plans
Vandna Soni to add 75-80 EBOs per annum for the next 2-3 years and targets to penetrate
+91 022 4031 3431 modern channels (MBOs, large format stores and online) gradually. The
vandna.soni@antiquelimited.com
company plans expansion of W and Auralia brands in Tier II and Tier III
cities by focusing on product assortment and value pricing. Management
expects all its three brands (W, Aurelia and Wishful) to grow at 14-16% CAGR
for next 2-3 years. Currently we don't have a formal rating on the stock. The
Market data stock is trading at 43x FY18 EPS and 26x FY18 EV/EBITDA.
Sensex : 35,200
Focus on product development differentiates brand positioning; Brands to grow at 14-16%
Sector : FMCG
CAGR
Market Cap (INRbn) : 42.8
Market Cap (USDbn) : 0.599 Focus on product development in terms of fashion (new design) and fitment helps the company
O/S Shares (m) : 61.3 to differentiate product offering from competition (Biba, Global Desi, Soch, Westside etc).
52-wk HI/LO (INR) : 725/515 Catering to sizing and fit of women clothing is relatively complex compared to men clothing.
Avg Daily Vol ('000) : 62 In this regard, TCNS has conducted anthropometric studies on Indian women in 2002, which
Bloomberg : TCNSBR IN was updated in 2011. Management believes this has helped the company to sharpen
Source: Bloomberg product offering. Further, we also note that better fitment contributes significantly towards
Valuation creating brand loyalty among consumers. On product development w.r.t new design, TCNS
FY16 FY17 FY18 has a strong team (designers and craftsmen) of 11 employees dedicated to Aurelia and 26
EPS (INR) (6.9) 2.5 15.1 employees dedicated to W and Wishful who are engaged towards predicting new styles
P/E(x) (100.8) 282.3 46.2 and patterns. Management expects all the three brands (W, Aurelia and Wishful) to grow at
P/BV(x) 86.5 15.8 11.1 mid-teens (14-16%) for the next 2-3 year.
EV/EBITDA(x) (1074.4) 54.7 26.6 Quick turnaround time in product development aids in maintaining fresh stock at store level
Dividend Yield (%) - - -
From the time of ideation to the launch of the product on retail floor, TCNS operates with a
Source: Bloomberg
lead time of 7-8 months in terms of season and 5-6 months at product level. In this regard,
Returns (%) TCNS is working towards few lines (concepts) which can be launched with a low lead time of
1m 3m 6m 12m
75 days. The company works on 12 ideas (concepts) for each season. 2-3 ideas are launched
Absolute 23 7 - -
at the interval of every 2-3 weeks. This helps in maintaining freshness of the inventory at retail-
Relative 20 17 - -
floor level.
Source: Bloomberg
Channel expansion to drive business performance
Shareholding pattern
TCNS expects to add 75-80 EBOs in India for next 2-3 years across its three brands. Revenue
Promoters : 32% contribution from other modern channels like MBOs, large format stores and online are also
Public : 68% expected to grow steadily. We note that; MBOs are most profitable channel followed by
Others : 0%
EBOs and Large Format Stores.
Source: Bloomberg
Product assortment and value pricing to drive penetration in smaller towns
Price performance vs Nifty TCNS is also targeting to drive expansion in tier II and tier III towns of W and Aurelia brands
120 by focus on product assortment and value pricing. Average selling price (ASP) of Aurelia
100 stands at a sweet spot of INR 1000-1100 which should help drive penetration in smaller
80 towns. ASP of W stands at INR 1700-1900 and Wishful at INR 3500-4000.
60
Jul- Aug- Sep- Oct- Nov- Valuation; trading at 26x FY18 EV/EBITDA
18 18 18 18 18
TCNS Clothing NIFTY Currently we don't have a formal rating on the stock. The company is trading at 43x FY18
Source: Bloomberg Indexed to 100
EPS and 26x FY18EV/EBITDA.
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 10

Brands focused on women ethnic, Indianized western and premium occasion wear

Source; Company, Antique

ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 11

W contributes 59% to revenue followed by

Aurelia and Wishful All three brand continue to grow at high double digit

Share of brands (as of Sept'18) Brandw ise grow th (%YoY 2QFY19)

Wishful, 7%
21%

17%
14%

Aurelia, 34%

W, 59%

W Aurelia Wishful

Source; Company, Antique Source; Company, Antique

Number of EBOs grew at 9%QoQ followed by MBO (at 4%) Revenue from Online grew at 83%YoY followed by EBOs (at 18%
and LFS (at 2%) due to higher store addition), LFS (at 13%YoY) and MBOs (at -6%)
Distribution netwrok Channel w ise revenue split (as on Sep'18)

Online and
MBOs, 8% others, 2%
465 505

1,469 1,504

1,522 1,580 LFS, 29% EBOs, 48%

Mar'18 Sep'18

MBOs LFS EBOs

Source; Company, Antique Source; Company, Antique

Half of the new store addition in 2QFY19 was

in value price segment (Aurelia) Total store count as on Sept'18
New Store addition in 2QFY19 Total store count brand-wise (as on Sept'18)
11
300
9

203

1
2

W Aurelia Wishful
W Aurelia Wishful

Source; Company, Antique Source; Company, Antique

ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 12

Financials
Profit and loss account (INRm) Cash flow statement (INRm)
Year ended 31 Mar 2014 2015 2016 2017 2018 Year ended 31 Mar 2014 2015 2016 2017 2018
Net Revenue 1,696 3,010 4,854 7,009 8,385 PBT 133 410 (136) 624 1,448
Op. Expenses (1,481) (2,499) (4,893) (6,246) (6,831) Depreciation & amortisation 40 62 89 134 167
EBITDA 215 511 (39) 763 1,554 Interest expense 49 49 29 25 7
Depreciation (40) (62) (89) (134) (167) (Inc)/Dec in working capital (75) (234) (212) (646) (971)
EBIT 175 449 (128) 629 1,388 Tax paid (64) (140) (325) (628) (452)
Other income 7 10 21 19 67 Less: Interest/Dividend Income Recd (6) (6) (6) (9) (13)
Interest Exp. (49) (49) (29) (25) (7) Other operating Cash Flow 4 (1) 905 752 229
Reported PBT 133 410 (136) 624 1,448 CF from operating activities 80 140 344 251 413
Tax (45) (147) (279) (466) (467) Capital expenditure (81) (148) (271) (242) (285)
Reported PAT 88 263 (415) 158 981 Inc/(Dec) in investments (7) 2 (18) (40) (3)
Net Profit 88 263 (415) 158 981 Add: Interest/Dividend Income Recd 3 1 9 12 12
Adjusted PAT 88 263 (415) 158 981 CF from investing activities (84) (145) (279) (271) (276)
Adjusted EPS (INR) 1.7 5.0 (6.9) 2.5 15.1 Inc/(Dec) in share capital 1 - - - -
Inc/(Dec) in debt 34 56 (16) (294) 157
Balance sheet (INRm) Dividend Paid - - - - -
Year ended 31 Mar 2014 2015 2016 2017 2018 Others (49) (49) (30) 306 53
Share Capital 104 104 92 111 113 CF from financing activities (15) 7 (45) 12 210
Reserves & Surplus 730 1,000 392 2,708 3,960 Net cash flow (19) 2 20 (8) 347
Networth 834 1,104 483 2,819 4,072 Opening balance 89 66 84 140 144
Debt 328 374 357 86 244 Closing balance 70 69 103 132 491
Net deferred Tax liabilities (36) (50) (155) (97) (115)
Capital Employed 1,126 1,428 684 2,808 4,202 Growth indicators (%)
Gross Fixed Assets 278 417 660 586 783 Year ended 31 Mar 2014 2015 2016 2017 2018
Accumulated Depreciation (154) (207) (267) (117) (264) Revenue(%) 32.1 77.5 61.3 44.4 19.6
Capital work in progress - 1 2 8 25 EBITDA(%) 41.7 137.8 -107.6 -2064.8 103.7
Net Fixed Assets 124 212 395 477 543 Adj PAT(%) 84.2 200.4 -257.9 -138.1 520.9
Goodwill - - - 25 56 Adj EPS(%) 80.7 200.4 -239.5 -135.7 511.4
Investments 62 153 367 41 234
Non Current Investments 6 9 13 17 - Valuation (x)
Current Investments 56 144 354 24 234 Year ended 31 Mar 2014 2015 2016 2017 2018
Current Assets, Loans & Adv 1,430 1,859 2,464 4,025 5,705 P/E 422.2 140.5 (100.8) 282.3 46.2
Inventory 593 892 1,371 1,940 2,312 P/BV 44.3 33.5 86.5 15.8 11.1
Debtors 610 652 642 997 1,396 EV/EBITDA 195.5 82.2 (1,074.4) 54.7 26.6
Cash & Bank balance 70 69 103 132 491 EV/Sales 24.8 13.9 8.6 6.0 4.9
Loans & advances and others 157 247 348 955 1,507 Dividend Yield (%) - - - - -
Current Liabilities & Prov 490 796 2,542 1,759 2,337
Liabilities 374 563 2,078 1,271 1,327
Financial ratios
Provisions 117 233 464 488 1,010
Year ended 31 Mar 2014 2015 2016 2017 2018
RoE (%) 11.1 27.1 (52.3) 9.6 28.5
Net Current Assets 940 1,063 (77) 2,266 3,369
RoCE (%) 16.9 35.9 (10.1) 37.1 41.5
Application of Funds 1,126 1,428 684 2,808 4,202
Asset/T.O (x) 1.7 2.6 6.1 4.6 2.5
Per share data Net Debt/Equity (x) 0.2 0.1 (0.2) (0.0) (0.1)
Year ended 31 Mar 2014 2015 2016 2017 2018 EBIT/Interest (x) (3.7) (9.4) 3.6 (26.3) (216.8)
No. of shares (m) 53.0 53.0 60.0 64.0 65.0
Diluted no. of shares (m) 53.0 53.0 60.0 64.0 65
Margins (%)
BVPS (INR) 15.7 20.8 8.1 44.1 62.65
Year ended 31 Mar 2014 2015 2016 2017 2018
EBITDA Margin(%) 12.7 17.0 (0.8) 10.9 18.5
CEPS (INR) 0.9 3.8 -8.4 0.4 12.53
EBIT Margin(%) 10.3 14.9 (2.6) 9.0 16.5
DPS (INR) - - - - -
PAT Margin(%) 5.1 8.7 (8.5) 2.2 11.6
Source: Company, Antique
Source: Company Antique
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 13

Valuation Guide
Company Reco CMP TP Return M.Cap M.Cap Net profit (INRbn) EPS (INR) P/E (x) EV/EBITDA (x) P/BV (x) RoE (%) RoCE (%) Absolute (%)
(INR) (INR) (%) (INRbn) ( U S D b n ) FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 FY19 FY19 FY19 1m 12m

AGROCHEM
Bayer Cropscience Buy 4,085 3,920 (4) 140.3 2.0 3.0 3.1 3.8 87.5 89.8 111.9 46.7 45.5 36.5 32.7 27.8 22.5 7.0 16.3 25.4 -4 2
Dhanuka Agri Buy 443 460 4 21.8 0.3 1.3 1.2 1.4 25.7 24.8 28.6 17.2 17.9 15.5 12.5 12.5 10.4 3.0 17.9 24.1 9 -34
PI Industries Buy 839 790 (6) 115.7 1.6 3.7 3.9 5.0 26.6 28.4 36.0 31.5 29.5 23.3 23.4 21.3 16.6 5.2 18.8 23.9 10 2
Rallis India Buy 167 220 32 32.5 0.5 1.7 2.0 2.4 8.6 10.2 12.4 19.4 16.4 13.4 11.9 10.0 8.2 2.5 15.7 21.0 -11 -28
Sharda Cropchem Buy 311 420 35 28.0 0.4 1.8 2.1 2.7 20.2 23.5 29.9 15.4 13.2 10.4 8.2 6.6 5.3 2.2 17.4 24.1 -5 -32
UPL Buy 779 750 (4) 396.8 5.6 20.9 22.3 25.9 40.9 43.7 50.8 19.1 17.8 15.3 12.4 11.0 9.5 3.7 22.3 21.9 21 3
AUTOMOBILES
Apollo Tyres Buy 225 275 22 129.0 1.8 7.2 9.1 11.8 12.7 15.8 20.6 17.8 14.2 10.9 9.3 7.4 6.4 1.2 8.9 9.5 9 -8
Ashok Leyland Buy 110 148 34 323.8 4.6 15.7 19.4 26.3 5.3 6.6 9.0 20.6 16.7 12.3 10.7 9.0 6.3 3.9 23.4 20.7 -2 -4
Atul Auto Buy 335 422 26 7.4 0.1 0.5 0.5 0.6 20.6 23.0 27.6 16.2 14.5 12.1 9.3 9.3 7.8 2.9 21.7 32.2 2 -22
Bajaj Auto Hold 2,605 3,070 18 753.7 10.6 41.0 39.8 46.5 141.7 137.5 160.6 18.4 18.9 16.2 15.6 15.0 12.7 3.6 19.0 27.1 4 -21
Bharat Forge Buy 580 720 24 270.1 3.8 8.5 11.2 13.7 18.3 24.0 29.5 31.8 24.2 19.7 17.0 13.7 11.6 5.2 21.6 21.2 3 -18
Ceat Hold 1,261 1,140 (10) 51.0 0.7 2.7 3.3 3.7 67.2 81.5 91.4 18.8 15.5 13.8 9.1 9.2 8.4 1.8 12.0 13.7 14 -31
Eicher Motors Buy 24,216 30,005 24 660.3 9.3 21.8 25.1 33.4 802.5 923.41,230.8 30.2 26.2 19.7 21.2 17.3 12.7 7.2 30.9 40.6 12 -20
Hero MotoCorp Hold 2,912 3,026 4 581.6 8.2 37.0 37.1 41.8 185.1 185.7 209.3 15.7 15.7 13.9 11.0 10.6 9.3 4.4 28.4 40.2 7 -21
Mahindra & Mahindra Buy 769 977 27 956.1 13.4 39.2 49.6 58.4 31.5 39.9 47.0 24.4 19.3 16.4 15.4 13.2 11.3 2.8 14.6 13.3 4 9
Mahindra CIE Buy 259 350 35 98.2 1.4 3.7 4.8 5.7 9.9 12.8 15.2 26.3 20.3 17.1 13.3 10.5 8.7 2.4 12.4 15.0 -2 10
Maruti Suzuki Hold 7,425 6,601 (11) 2,242.8 31.5 79.7 89.7 99.7 264.0 297.2 330.1 28.1 25.0 22.5 18.5 16.0 13.7 4.8 20.2 28.3 10 -12
Minda Corp Buy 141 180 28 32.0 0.4 1.4 1.8 2.3 6.3 7.9 10.0 22.4 17.9 14.1 13.8 11.1 9.2 2.4 18.2 16.5 18 -30
Minda Industries Hold 327 361 11 85.6 1.2 2.7 3.8 4.5 10.4 14.5 17.1 31.3 22.5 19.1 16.5 12.5 10.5 4.9 24.1 22.2 4 -14
Motherson Sumi Hold 151 168 11 477.0 6.7 18.1 19.2 25.7 5.7 6.1 8.1 26.3 24.8 18.5 10.7 9.5 7.3 4.2 0.2 0.2 -12 -36
Schaeffler India Ltd Buy 5,497 5,959 8 91.4 1.3 2.4 2.9 3.4 143.2 175.8 205.4 38.4 31.3 26.8 22.7 18.5 15.9 4.6 16.0 24.3 10 6
SKF India Buy 1,877 2,067 10 96.4 1.4 3.0 3.4 3.9 57.6 66.4 76.3 32.6 28.3 24.6 20.8 18.0 15.2 4.6 17.4 26.6 10 9
Tata Motors Buy 184 305 66 582.6 8.2 58.3 50.1 66.8 17.2 14.8 19.7 10.7 12.5 9.4 3.0 3.2 2.6 0.6 5.0 2.9 5 -57
TVS Motors Buy 543 745 37 257.7 3.6 6.6 7.8 11.4 13.9 16.4 23.9 38.9 33.2 22.7 23.7 17.4 12.2 7.7 23.1 26.3 5 -23
BUILDING MATERIALS
Astral Poly Technik Hold 1,039 790 (24) 124.5 1.7 1.8 2.6 15.0 21.9 69.4 47.4 - 39.5 30.6 - 9.8 23.0 28.2 14 31
Century Plyboards India Buy 164 220 34 36.5 0.5 1.6 1.8 2.4 7.3 8.2 10.7 22.4 20.0 15.3 12.6 12.4 10.0 3.6 19.7 19.5 -13 -44
Cera Sanitaryware Hold 2,413 2,500 4 31.4 0.4 1.1 1.3 1.6 81.5 99.6 124.9 29.6 24.2 19.3 17.5 14.1 11.3 4.4 19.3 26.3 0 -33
Finolex Industries Hold 527 550 4 65.4 0.9 2.9 4.0 4.2 24.7 32.9 34.6 21.3 16.0 15.2 10.4 7.7 7.1 2.2 13.8 18.8 12 -17
Greenlam Industries Buy 906 970 7 21.9 0.3 0.6 0.8 1.1 26.8 33.2 44.1 33.8 27.3 20.5 16.0 13.5 11.0 5.1 20.4 23.2 -4 -10
Greenply Industries Buy 132 160 21 16.2 0.2 1.1 0.9 1.3 9.0 7.7 10.2 14.7 17.2 13.0 9.8 10.0 7.7 1.7 10.2 10.7 8 -59
Kajaria Ceramics Hold 449 380 (15) 71.4 1.0 2.4 2.4 3.0 14.7 14.8 18.9 30.5 30.3 23.8 15.8 15.3 12.5 4.7 16.5 22.1 32 -38
Somany Ceramics Hold 291 310 6 12.3 0.2 0.7 0.5 0.8 17.6 12.4 19.7 16.5 23.5 14.8 8.5 10.0 7.7 2.0 8.8 10.1 -18 -66
Supreme Industries Buy 968 1,190 23 123.0 1.7 4.3 5.0 6.0 34.0 39.2 47.5 28.5 24.7 20.4 15.9 13.7 11.5 5.8 24.8 30.9 -3 -14
CEMENT
ACC Buy 1,497 1,680 12 281.1 4.0 9.2 10.6 12.4 49.2 56.3 65.8 30.4 26.6 22.7 13.3 12.1 10.4 2.8 10.9 16.6 5 -12
Ambuja Cement Buy 218 235 8 432.1 6.1 12.1 12.2 14.2 6.1 6.2 7.1 35.7 35.3 30.5 20.9 20.1 17.6 2.1 6.1 8.5 4 -17
Dalmia Bharat Buy 2,359 2,930 24 210.3 3.0 2.9 2.7 6.2 32.7 30.9 69.8 72.1 76.4 33.8 12.1 12.1 10.0 2.0 2.6 5.6 17 -22
Grasim Industries Buy 864 1,205 39 568.0 8.0 19.6 24.9 26.8 29.8 37.9 40.8 29.0 22.8 21.1 18.3 14.3 13.4 1.2 5.4 7.3 -1 -26
JK Lakshmi Cement Buy 272 340 25 32.0 0.4 0.8 0.8 1.6 7.1 7.0 13.9 38.1 38.8 19.5 11.5 11.1 8.2 2.1 5.5 8.7 -1 -32
Orient Cement Hold 85 97 15 17.3 0.2 0.4 0.5 1.2 2.2 2.3 5.7 39.1 36.2 14.8 9.9 9.4 6.9 1.6 4.6 8.1 -4 -49
Shree Cements Hold 15,965 17,400 9 556.2 7.8 13.8 14.0 16.8 397.3 401.5 481.2 40.2 39.8 33.2 21.6 20.1 15.6 5.5 14.7 15.1 10 -6
UltraTech Cement Hold 4,044 3,880 (4) 1,110.5 15.6 23.5 25.6 33.7 85.5 93.4 122.7 47.3 43.3 33.0 20.9 18.6 15.6 3.9 9.5 10.7 12 -3
FMCG
Asian Paints Buy 1,324 1,336 1 1,270.2 17.9 19.7 22.2 25.7 20.5 23.1 26.8 64.5 57.3 49.4 39.4 35.7 30.0 13.2 24.6 32.6 7 14
Bajaj Corp Buy 351 458 30 51.7 0.7 2.2 2.2 2.6 14.7 14.6 17.4 23.9 24.0 20.1 18.8 18.2 15.2 10.9 44.0 54.6 -9 -25
Colgate Palmolive Buy 1,160 1,261 9 315.5 4.4 6.5 7.6 8.7 24.1 27.8 32.1 48.2 41.7 36.2 27.9 23.8 20.5 14.3 40.6 61.7 5 12
Emami BUY 442 540 22 200.8 2.8 5.0 5.8 6.9 11.0 12.9 15.2 40.4 34.4 29.1 27.8 22.5 18.8 8.4 26.5 28.5 2 -31
Future Consumer BUY 50 70 41 95.1 1.3 -0.3 0.2 1.0 -0.1 0.1 0.5 -365.6 753.8 102.9 187.5 88.4 43.6 9.3 2.0 5.2 17 -15
Future Retail Buy 522 681 30 262.5 3.7 6.2 7.4 8.0 12.3 14.8 15.9 42.6 35.2 32.8 32.9 26.8 19.5 6.9 21.5 19.7 5 1
Godrej Consumer Buy 709 864 22 724.4 10.2 14.8 17.4 21.1 14.5 17.0 20.6 48.8 41.6 34.4 34.3 28.7 23.7 9.6 25.2 25.7 -5 12
Hindustan Unilever Hold 1,690 1,706 1 3,658.1 51.4 51.4 61.0 72.8 23.7 28.2 33.6 71.2 60.0 50.2 49.4 41.6 34.6 49.7 84.5 126.2 7 32
ITC Buy 282 356 26 3,449.3 48.5 108.1 122.2 137.8 8.9 10.0 11.3 31.8 28.1 25.0 21.9 19.4 17.1 6.2 23.1 33.7 -3 10
Jyothy Labs Buy 185 225 21 67.4 0.9 1.6 2.0 2.3 4.4 5.4 6.4 42.2 34.2 29.0 26.0 22.5 19.7 6.1 17.5 18.9 1 6
Kansai Nerolac Hold 436 393 (10) 234.8 3.3 5.2 5.0 6.0 9.6 9.4 11.1 45.5 46.5 39.2 28.6 28.3 24.0 6.9 15.4 23.4 5 -10
Marico Buy 352 403 14 454.9 6.4 8.1 9.7 12.5 6.3 7.5 9.7 55.8 46.7 36.4 39.7 33.1 25.7 15.2 35.2 44.6 14 15
Nestle HOLD 10,238 10,293 1 987.1 13.9 13.5 18.3 21.6 140.0 189.9 224.0 73.1 53.9 45.7 42.9 32.5 27.9 30.5 57.5 82.7 7 32
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 14

Valuation Guide
Company Reco CMP TP Return M.Cap M.Cap Net profit (INRbn) EPS (INR) PE (x) EV/EBITDA (x) P/BV (x) RoE (%) RoCE (%) Absolute (%)
(INR) (INR) (%) (INRbn) ( U S D b n ) FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 FY19 FY19 FY19 1m 12m

INDUSTRIALS & ENGINEERING

ABB Buy 1,341 1,410 5 284.2 4.0 4.2 5.6 6.7 19.8 26.2 31.8 67.7 51.2 42.2 36.6 28.9 24.1 7.2 14.7 25.3 5 -3
Bajaj Elec. Buy 474 720 52 48.5 0.7 1.7 2.2 3.0 16.8 21.8 28.8 28.3 21.8 16.5 18.9 13.5 10.8 4.5 22.1 24.4 -6 16
BEML Buy 750 1,010 35 31.2 0.4 1.3 1.7 2.3 31.0 40.5 56.1 24.1 18.5 13.4 14.1 10.2 7.8 1.3 7.4 10.4 29 -54
Bharat Electronics Buy 94 140 48 229.6 3.2 14.0 15.6 17.0 5.7 6.4 7.0 16.4 14.8 13.5 11.1 8.9 8.0 2.6 18.6 27.1 13 -47
BHEL Hold 67 85 27 244.5 3.4 8.1 12.7 20.7 2.2 3.4 5.6 30.3 19.3 11.8 6.8 6.4 4.2 0.7 3.8 7.2 -9 -24
Blue Star Hold 624 615 (2) 60.1 0.8 1.4 1.7 2.1 15.1 18.0 22.0 41.3 34.7 28.4 22.8 19.0 16.2 6.9 20.2 28.6 13 -10
Crompton Consumer Hold 204 205 1 127.6 1.8 3.2 3.6 4.3 5.2 5.8 6.8 39.4 35.2 29.8 24.2 22.4 18.9 13.6 41.9 41.9 4 -17
CG Power & Ind. Sol. Buy 39 122 213 24.5 0.3 0.5 1.9 2.9 0.8 3.0 4.7 48.0 12.9 8.4 8.0 5.4 3.1 0.9 6.8 8.0 4 -55
Cummins India Buy 786 950 21 217.9 3.1 6.5 8.0 9.4 23.5 29.0 33.9 33.4 27.1 23.2 29.4 23.8 20.2 5.2 19.6 25.6 13 -8
Engineers India Hold 119 126 6 75.0 1.1 3.8 4.1 4.7 5.7 6.1 7.0 20.9 19.6 17.0 11.8 11.4 9.4 3.2 17.0 29.6 3 -36
GE T&D Hold 236 248 5 60.5 0.9 2.1 2.3 2.5 8.2 9.1 9.9 29.0 25.9 23.9 21.9 15.3 14.7 4.4 18.2 30.4 -4 -42
Havells India Buy 670 600 (10) 418.9 5.9 7.0 8.5 10.7 11.2 13.6 17.1 59.8 49.4 39.1 38.6 32.5 26.4 10.3 21.7 29.1 12 32
Hitachi Home & Life Buy 1,718 2,050 19 46.7 0.7 1.0 1.1 1.6 36.8 40.7 58.6 46.6 42.2 29.3 23.4 21.3 15.6 7.4 18.9 28.1 3 -31
Honeywell Automation Buy 21,242 24,000 13 187.8 2.6 2.5 3.4 4.2 282.5 388.7 480.0 75.2 54.6 44.3 49.1 38.7 30.8 10.7 21.7 34.3 12 26
KEC International Buy 280 386 38 72.0 1.0 4.6 5.1 6.2 17.9 19.9 24.1 15.6 14.1 11.6 8.6 7.3 6.1 2.7 21.8 26.4 1 -7
Kirloskar Pneumatic Buy 162 235 45 10.4 0.1 0.5 0.6 0.8 7.8 9.4 11.8 20.9 17.2 13.8 13.1 10.8 8.4 2.1 12.7 18.8 8 -7
Lakshmi Machine Works Hold 5,926 5,900 (0) 64.9 0.9 2.2 2.6 3.0 191.0 232.0 268.2 31.0 25.5 22.1 20.8 16.3 13.5 3.6 14.7 27.6 -2 2
Larsen & Toubro Buy 1,402 1,650 18 1,965.7 27.6 72.5 93.6 107.1 51.7 66.8 76.5 27.1 21.0 18.3 20.9 17.6 15.5 2.0 15.6 8.9 16 15
Siemens Buy 917 1,370 49 326.7 4.6 8.9 10.5 12.8 25.1 29.4 35.9 36.5 31.2 25.6 22.0 16.5 14.3 3.9 12.5 19.8 5 -23
Techno Electric Buy 264 450 71 29.7 0.4 1.2 2.3 2.7 10.7 20.2 23.9 24.7 13.0 11.0 17.7 8.4 6.7 2.1 17.2 21.2
Thermax Hold 980 960 (2) 116.8 1.6 2.3 3.5 4.6 19.4 29.3 38.4 50.5 33.5 25.5 28.9 23.4 18.0 4.1 12.6 18.6 0 -5
Voltas Buy 560 640 14 185.4 2.6 5.8 5.8 7.1 17.5 17.5 21.3 32.1 32.1 26.3 27.8 26.9 20.9 4.2 13.9 23.2 10 -11
IT
Cyient Buy 622 820 32 70.3 1.0 4.2 5.0 5.9 37.6 44.1 52.3 16.6 14.1 11.9 11.4 9.1 7.3 2.6 19.9 24.5 -5 12
HCL Tech Buy 985 1,180 20 1,371.8 19.3 87.8 101.3 108.7 62.7 73.6 79.0 15.7 13.4 12.5 11.2 8.9 8.2 3.1 25.4 32.2 3 18
Hexaware Tech Hold 304 330 9 90.3 1.3 5.0 6.1 6.3 16.8 20.7 21.6 18.1 14.7 14.1 13.0 10.9 9.3 3.8 28.1 36.4 -20 -9
Infosys Buy 619 810 31 2,704.5 38.0 147.8 160.6 178.3 32.7 36.8 40.8 18.9 16.8 15.2 13.2 11.3 10.0 3.8 23.5 32.4 -9 29
KPIT Tech Hold 208 260 25 41.0 0.6 2.3 -1.4 2.3 11.9 -7.2 12.3 17.4 -29.0 16.9 10.1 33.4 8.4 2.0 -7.0 0.2 -2 20
Larsen Toubro Infotech Buy 1,523 2,140 41 263.9 3.7 11.6 15.5 17.1 66.4 88.7 97.7 22.9 17.2 15.6 20.8 13.3 11.3 5.7 36.3 51.8 -13 55
Mphasis Hold 905 1,200 33 175.1 2.5 8.5 10.7 12.7 44.0 55.6 65.9 20.6 16.3 13.7 14.8 11.4 9.4 3.0 18.9 24.0 -15 25
NIIT Tech Buy 1,086 1,700 57 66.9 0.9 2.7 4.3 5.4 44.8 70.9 89.4 24.2 15.3 12.1 11.8 8.9 6.9 3.2 22.4 32.1 -12 70
Persistent Sys Buy 541 740 37 43.3 0.6 3.2 3.5 4.1 40.4 43.6 51.6 13.4 12.4 10.5 7.5 5.1 4.0 1.8 15.5 22.3 -18 -17
TCS Buy 1,812 2,330 29 6,799.3 95.6 258.3 315.5 365.6 67.6 82.6 95.7 26.8 21.9 18.9 19.6 15.5 13.2 6.6 33.2 43.6 -5 36
TeamLease Buy 2,781 3,000 8 47.5 0.7 0.7 1.1 1.6 43.1 63.1 95.0 64.5 44.0 29.3 65.9 44.7 29.1 8.5 21.2 22.4 15 47
Tech Mahindra Buy 691 870 26 677.6 9.5 38.0 46.4 51.1 42.7 51.9 57.3 16.2 13.3 12.1 13.4 9.3 8.3 2.7 22.4 27.8 0 40
Wipro Hold 314 330 5 1,421.2 20.0 82.9 86.2 100.1 17.4 20.2 22.2 18.1 15.5 14.2 11.6 10.1 8.6 2.6 17.2 18.4 -3 7
LOGISTICS
Allcargo Logistics Buy 107 140 31 26.3 0.4 1.8 2.1 2.6 7.2 8.7 10.8 14.9 12.3 9.9 7.3 6.4 5.3 1.2 10.4 12.6 16 -37
Arshiya Ltd Buy 36 78 119 8.2 0.1 -3.4 -1.6 1.3 -30.1 -13.5 10.4 -1.2 -2.6 3.4 79.3 59.5 28.0 1.1 -21.3 0.9 -7 -62
Blue Dart Express Hold 3,105 3,015 (3) 73.7 1.0 1.4 1.1 1.8 59.9 47.7 75.4 51.9 65.0 41.2 28.1 35.3 23.9 10.9 17.4 24.2 11 -26
ConCor Buy 676 775 15 329.6 4.6 8.6 10.0 12.6 17.6 20.5 25.8 38.5 33.0 26.2 25.1 20.3 16.4 3.4 10.4 14.0 14 0
Gateway Distiparks Hold 157 155 (1) 17.1 0.2 0.7 0.8 1.0 6.5 7.0 8.7 24.2 22.3 17.9 19.9 20.8 18.0 1.7 7.5 10.0 8 -41
Navkar Corp. Buy 63 100 61 9.4 0.1 1.0 0.8 1.2 6.7 5.5 8.3 9.3 11.3 7.5 7.7 7.2 5.4 0.5 4.8 6.3 -23 -67
Transport Corp. Buy 277 370 34 21.2 0.3 1.2 1.4 1.8 16.1 18.5 23.0 17.2 15.0 12.0 12.0 10.8 8.8 2.4 17.1 15.4 0 -4
VRL Logistics Hold 307 305 (1) 27.7 0.4 0.9 0.9 1.3 10.2 10.2 13.9 29.9 30.2 22.1 12.1 12.1 9.5 4.3 14.9 18.1 21 -21
METALS & MINING
Hindalco Industries Buy 223 313 40 501.1 7.0 43.1 74.0 72.0 19.3 33.2 32.3 11.5 6.7 6.9 6.6 5.3 5.1 0.8 12.7 12.1 -2 -15
Hindustan Zinc Hold 266 283 7 1,123.5 15.8 90.4 89.8 89.5 21.4 21.3 21.2 12.4 12.5 12.6 7.3 7.4 6.9 3.2 25.4 35.5 0 -10
Jindal Steel & Power Buy 171 257 50 165.4 2.3 -8.2 7.4 20.6 -8.1 7.3 20.2 -21.1 23.3 8.4 9.3 7.0 5.6 0.6 2.4 5.3 3 -1
JSW Steel Hold 326 348 7 788.1 11.1 64.8 69.4 64.5 26.8 28.7 26.7 12.2 11.4 12.2 8.0 7.2 7.5 2.4 22.7 18.0 -10 21
MOIL Buy 169 260 53 43.6 0.6 4.2 5.0 5.5 16.4 19.4 21.5 10.3 8.7 7.9 4.1 3.2 2.5 1.4 16.7 25.3 0 -33
NALCO Buy 67 97 44 129.3 1.8 5.2 17.6 13.6 2.7 9.1 7.0 24.9 7.3 9.5 6.9 3.3 4.0 1.1 15.9 21.8 0 -19
NMDC Buy 98 168 72 310.4 4.4 36.6 42.4 45.6 11.6 13.4 14.4 8.5 7.3 6.8 4.5 4.5 4.1 1.2 16.6 24.7 -10 -22
SAIL Hold 62 72 17 255.7 3.6 -3.1 17.0 32.1 -0.7 4.1 7.8 -83.1 15.0 8.0 16.0 8.7 6.6 0.7 4.5 6.9 -5 -25
Tata Steel Buy 551 701 27 629.7 8.9 37.8 108.2 93.1 31.4 89.9 77.4 17.6 6.1 7.1 6.3 5.1 5.6 0.9 16.8 12.1 -1 -18
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 15

Valuation Guide
Company Reco CMP TP Return M.Cap M.Cap Net profit (INRbn) EPS (INR) PE (x) EV/EBITDA (x) P/BV (x) RoE (%) RoCE (%) Absolute (%)

(INR) (INR) (%) (INRbn) ( U S D b n ) FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 FY19 FY19 FY19 1m 12m

OIL & GAS

BPCL Hold 327 335 3 708.5 10.0 79.2 56.7 62.3 36.5 26.1 28.7 8.9 12.5 11.4 7.6 10.5 9.8 1.7 15.9 14.7 15 -36
Castrol India Buy 155 225 46 152.8 2.1 6.9 6.8 7.5 7.0 6.9 7.5 22.1 22.4 20.5 14.0 14.3 13.0 17.2 71.6 108.7 10 -21
GAIL India Buy 345 400 16 778.1 10.9 45.9 49.2 56.4 20.4 21.8 25.0 16.9 15.8 13.8 10.0 9.7 8.1 1.8 11.8 15.8 0 0
Gujarat Gas Buy 621 990 59 85.5 1.2 2.9 3.8 5.5 21.1 27.5 39.8 29.4 22.6 15.6 11.8 9.9 7.6 4.0 18.8 15.2 -4 -27
Gujarat State Petronet Hold 182 225 23 102.9 1.4 6.7 8.0 8.5 11.9 14.1 15.2 15.4 12.9 12.0 10.2 8.0 7.5 1.8 14.7 18.1 9 -12
Gulf Oil Lubricants Buy 770 1,100 43 38.3 0.5 1.6 1.7 2.2 32.0 35.3 44.0 24.1 21.8 17.5 15.9 14.0 11.1 6.7 33.7 35.4 8 -22
HPCL Hold 246 210 (15) 374.8 5.3 63.6 32.7 43.5 41.7 21.5 28.5 5.9 11.4 8.6 4.8 8.9 7.5 1.4 13.1 10.7 14 -41
Indian Oil Corp Hold 142 155 9 1,375.2 19.3 213.5 194.2 207.0 22.0 20.0 21.3 6.4 7.1 6.6 4.7 5.4 5.3 1.1 16.9 18.2 6 -29
Indraprastha Gas Buy 266 340 28 186.0 2.6 6.7 7.1 8.1 9.6 10.2 11.6 27.7 26.0 22.9 16.2 15.1 13.3 4.7 19.1 27.3 7 -14
Mahanagar Gas Hold 859 990 15 84.8 1.2 4.8 5.6 6.2 48.4 56.4 62.8 17.8 15.2 13.7 10.4 9.3 8.3 3.8 25.9 29.8 4 -23
Oil India Buy 203 265 31 230.0 3.2 26.7 37.5 37.8 23.5 33.0 33.3 8.6 6.1 6.1 7.0 4.7 4.5 0.8 12.9 15.2 0 -14
ONGC Buy 152 225 48 1,947.4 27.4 218.6 318.2 359.1 17.0 24.8 28.0 8.9 6.1 5.4 4.8 3.4 2.9 0.8 13.9 14.8 -5 -16
Petronet LNG Hold 214 235 10 321.7 4.5 20.8 22.5 24.0 13.9 15.0 16.0 15.5 14.3 13.4 9.7 10.3 9.2 3.1 22.4 28.3 3 -13
Reliance Industries Hold 1,113 1,180 6 7,054.1 99.2 349.9 460.8 596.2 59.1 77.8 100.7 18.8 14.3 11.1 13.3 10.6 8.4 1.9 14.5 13.2 1 19
Pharma
Alembic Pharma Hold 568 590 4 107.0 1.5 4.1 5.2 5.2 22.0 27.8 27.4 25.8 20.4 20.7 17.6 13.9 13.4 4.0 21.5 22.3 -7 10
Cadila Healthcare Hold 359 400 12 367.1 5.2 17.9 18.9 19.5 17.5 18.4 19.1 20.5 19.5 18.8 14.1 13.9 12.3 3.6 20.1 14.7 -4 -20
Cipla Hold 522 600 15 420.5 5.9 13.8 15.2 20.5 17.1 18.9 25.5 30.5 27.7 20.4 15.6 15.2 11.5 2.7 10.2 11.6 -18 -15
Dr Reddy's Lab Buy 2,602 2,950 13 431.9 6.1 9.8 17.0 20.0 59.2 102.4 120.9 44.0 25.4 21.5 20.2 14.7 11.8 3.1 12.9 11.2 2 9
Lupin Hold 850 760 (11) 384.2 5.4 13.7 11.8 17.2 30.5 26.1 38.2 27.9 32.5 22.2 14.5 16.5 11.9 2.6 8.4 10.4 -3 1
Natco Buy 733 975 33 135.4 1.9 7.0 7.8 7.8 38.8 42.5 42.1 18.9 17.2 17.4 14.5 13.7 13.3 3.7 23.2 28.6 1 -19
Strides Shasun Hold 459 450 (2) 41.1 0.6 0.7 0.5 2.4 7.9 5.3 26.3 57.8 86.0 17.4 15.6 14.9 10.7 1.6 1.9 5.6 8 -43
Torrent Pharma Hold 1,633 1,635 0 276.3 3.9 6.8 8.7 11.5 40.0 51.4 68.1 40.8 31.7 24.0 23.7 15.4 12.7 5.4 17.8 15.9 4 28
INFRASTRUCTURE
Ashoka Buildcon Buy 125 155 24 35.1 0.5 2.4 2.8 3.1 8.4 9.9 10.9 14.8 12.6 11.5 12.7 10.1 8.8 1.7 13.9 12.1 11 -12
Dilip Buildcon Buy 481 661 38 65.7 0.9 6.4 7.9 9.0 46.5 57.8 66.1 10.3 8.3 7.3 5.5 4.2 3.4 2.0 27.5 29.9 3 -44
Gayatri Projects Hold 177 186 5 33.2 0.5 2.1 2.3 2.6 11.2 12.5 14.0 15.8 14.1 12.7 10.3 8.2 7.0 2.1 16.3 16.2 4 -10
IRB Infra Buy 143 213 49 50.1 0.7 8.7 7.9 8.8 24.8 22.5 25.0 5.7 6.3 5.7 7.1 5.5 5.0 0.8 13.7 12.6 19 -38
KNR Constructions Ltd. Buy 190 220 16 26.7 0.4 2.7 1.8 2.1 19.3 12.8 14.9 9.8 14.9 12.8 7.3 10.2 7.4 2.0 14.5 16.2 2 -31
NBCC Buy 59 74 27 105.7 1.5 3.5 3.6 6.7 2.0 2.0 3.7 29.8 29.5 15.8 19.3 24.8 10.4 4.9 17.4 14.5 11 -57
NCC Ltd. Buy 89 119 35 53.2 0.7 4.0 4.6 5.8 6.6 7.7 9.6 13.3 11.5 9.2 7.5 5.7 4.7 1.3 11.7 18.9 34 -18
Sadbhav Engg. Buy 204 363 78 35.0 0.5 2.2 2.7 3.3 12.9 15.5 19.1 15.8 13.1 10.7 12.3 10.6 7.3 1.6 13.3 11.6 -11 -40
Sadbhav Infra Buy 104 169 63 36.6 0.5 -3.3 -0.9 -0.9 -9.3 -2.5 -2.5 -11.1 -40.9 -41.3 11.3 9.1 7.2 6.6 -15.9 10.6 -3 -25
MidCaps - Other
APL Apollo Tubes Buy 1,283 1,760 37 30.4 0.4 1.6 1.8 2.5 66.6 77.6 103.6 19.3 16.5 12.4 10.3 9.1 7.5 3.1 20.3 20.7 -3 -31
CCL Products Buy 273 360 32 36.3 0.5 1.5 1.5 1.9 11.1 11.5 14.6 24.5 23.7 18.7 16.3 14.4 11.7 4.2 19.2 19.6 12 -13
Deepak Nitrite Buy 262 325 24 35.7 0.5 0.8 1.7 2.9 5.8 12.3 21.6 45.2 21.2 12.1 20.3 10.0 7.2 3.4 16.9 17.0 4 16
Himadri Chemicals Buy 139 204 47 58.3 0.8 2.4 2.9 4.3 5.8 7.0 10.2 24.2 19.9 13.6 14.1 12.2 8.6 3.4 18.8 21.7 12 -14
ICRA Buy 3,277 4,252 30 32.5 0.5 1.0 1.2 1.2 102.2 117.3 126.1 32.1 27.9 26.0 25.3 23.5 20.9 4.4 16.8 23.3 -2 -18
Indian Hume Pipe Buy 308 393 28 14.9 0.2 0.7 1.0 1.1 13.6 20.4 23.3 22.6 15.1 13.2 12.0 9.0 8.1 2.8 20.2 24.0 21 -35
Jain Irrigation Buy 71 80 12 36.3 0.5 2.2 3.5 4.9 4.3 6.7 9.4 16.8 10.6 7.6 7.3 6.1 5.3 0.8 7.4 10.2 9 -38
Mold-Tek Packaging Buy 258 410 59 7.1 0.1 0.3 0.3 0.5 10.1 11.9 16.4 25.7 21.8 15.7 13.1 10.9 8.5 3.7 17.8 13.2 -1 -19
Raymond Buy 805 1,280 59 49.4 0.7 1.2 1.6 2.3 19.4 26.7 36.7 41.4 30.2 21.9 15.6 12.3 9.8 2.5 8.6 11.1 26 -17
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 16

Valuation Guide
Company Reco CMP TP Return M.Cap M.Cap Net profit (INRbn) ABVS (INR) P/AdjBV (x) NNPA Ratio (%) P/E (x) RoE (%) RoA (%) Absolute (%)
(INR) (INR) (%) (INRbn) ( U S D b n ) FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 FY19 FY19 FY19 1m 12m

FINANCIALS
Axis Bank Buy 627 680 8 1,610.8 22.6 2.8 38.7 107.5 204.8 238.5 264.9 3.1 2.6 2.4 3.8 2.1 2.0 42.3 5.8 0.5 11 15
Bank of Baroda Buy 112 145 29 296.8 4.2 -24.3 28.1 57.9 86.3 98.0 119.6 1.3 1.1 0.9 5.5 4.6 3.6 10.6 7.2 0.4 10 -38
Canara Bank Hold 263 280 7 192.9 2.7 -42.2 3.2 26.8 140.5 198.8 271.9 1.9 1.3 1.0 7.5 5.3 3.7 60.5 1.1 0.0 19 -33
City Union Bank Hold 168 190 13 122.8 1.7 5.9 7.1 8.1 57.6 67.7 79.5 2.9 2.5 2.1 1.7 1.6 1.3 15.7 15.8 1.7 -2 12
DCB Bank Buy 159 175 10 49.0 0.7 2.5 2.9 3.8 79.6 86.7 97.6 2.0 1.8 1.6 0.7 0.8 0.7 16.7 10.9 0.9 0 -12
Federal Bank Buy 83 105 26 164.4 2.3 8.8 11.1 15.4 56.8 59.5 63.2 1.5 1.4 1.3 1.7 1.6 1.7 14.9 8.8 0.7 2 -26
HDFC Bank Buy 2,019 2,350 16 5,486.5 77.1 174.9 210.5 248.7 402.6 531.2 602.5 5.0 3.8 3.4 0.4 0.4 0.3 26.1 16.7 1.8 3 9
ICICI Bank Buy 357 400 12 2,296.9 32.3 67.8 38.1 134.7 128.2 139.9 165.0 2.8 2.5 2.2 5.4 3.3 1.8 60.3 4.0 0.4 13 12
IndusInd Bank Buy 1,547 1,875 21 930.7 13.1 41.7 48.5 61.7 378.6 440.9 524.6 4.1 3.5 2.9 0.5 0.4 1.3 22.0 16.9 1.8 -2 -6
Karur Vysya Bank Buy 83 110 34 66.2 0.9 3.5 3.4 7.5 68.3 68.9 85.1 1.2 1.2 1.0 4.2 4.4 2.7 17.9 5.2 0.5 9 -25
Kotak Mahindra Bank Buy 1,177 1,400 19 2,244.2 31.5 40.8 48.2 61.2 171.6 194.8 221.2 6.9 6.0 5.3 1.0 0.9 1.0 46.5 12.1 1.7 -2 14
Punjab National Bank Hold 73 75 3 223.4 3.1 -122.8 -36.1 23.8 10.7 53.0 72.6 6.8 1.4 1.0 11.2 7.4 5.2 -7.9 -9.1 -0.5 10 -61
State Bank of India Buy 287 365 27 2,561.8 36.0 -65.5 20.9 280.7 124.3 159.1 182.2 2.3 1.8 1.6 5.7 3.3 3.0 122.5 1.1 0.1 10 -13
South Indian Bank Buy 15 18 23 26.4 0.4 3.3 2.9 5.8 22.6 22.9 25.9 0.6 0.6 0.6 2.6 2.6 2.1 9.2 5.6 0.3 -1 -54
Union Bank of India Buy 82 90 9 96.0 1.3 -52.5 3.4 28.1 47.8 66.7 100.0 1.7 1.2 0.8 8.4 7.1 5.8 27.9 1.5 0.1 27 -51
YES Bank Under Review198 - - 458.0 6.4 42.2 48.2 57.6 108.1 122.9 141.0 1.8 1.6 1.4 0.6 0.8 0.9 9.5 17.4 1.4 -9 -37
NBFCs
Bajaj Finance Hold 2,431 1,970 (19) 1,404.7 19.7 26.4 38.3 47.0 287.2 344.5 414.8 8.5 7.1 5.9 0.4 0.3 0.3 36.5 21.1 4.4 14 34
Cholamandalam Invst & Fin Buy 1,284 1,528 19 200.7 2.8 9.7 11.0 13.3 302.7 361.1 428.3 4.2 3.6 3.0 1.7 1.5 1.5 18.2 19.6 2.4 15 0
Equitas Holding Hold 108 120 11 37.0 0.5 0.3 2.1 2.8 63.6 70.4 78.2 1.7 1.5 1.4 1.4 0.8 0.8 17.8 8.7 1.3 -14 -25
Gruh Finance Hold 287 250 (13) 209.8 2.9 3.6 4.4 5.1 37.8 22.7 27.3 7.6 12.6 10.5 0.0 0.0 0.1 48.1 28.6 2.6 10 14
HDFC Buy 1,868 1,944 4 3,209.0 45.1 84.8 97.3 113.1 366.4 408.7 455.1 5.1 4.6 4.1 0.4 0.4 0.4 29.5 14.0 2.3 13 10
LIC Housing Finance Buy 468 490 5 236.3 3.3 19.9 23.3 26.7 251.3 288.3 330.6 1.9 1.6 1.4 0.4 0.4 0.4 10.1 17.1 1.3 11 -22
Manappuram Hold 85 95 12 71.6 1.0 6.7 8.4 9.6 45.0 51.5 58.9 1.9 1.6 1.4 0.3 0.5 0.6 8.5 20.1 4.9 22 -16
M&M Finance Hold 430 440 2 265.6 3.7 8.3 15.8 18.3 119.3 139.5 158.2 3.6 3.1 2.7 3.8 3.2 3.2 16.7 16.0 2.7 21 -2
Muthoot Capital Buy 821 1,056 29 13.5 0.2 0.5 0.8 1.0 239.5 288.4 352.0 3.4 2.8 2.3 3.0 3.3 3.0 16.8 18.5 3.1 4 38
Muthoot Finance Buy 453 580 28 181.2 2.5 17.2 20.2 23.0 180.8 217.1 261.0 2.5 2.1 1.7 6.2 2.0 2.0 9.0 23.7 6.4 19 0
PNB Hsg. Fin. Hold 1,000 900 (10) 167.4 2.4 8.3 9.1 10.4 378.6 433.1 495.6 2.6 2.3 2.0 0.3 0.3 0.3 18.3 14.0 1.4 42 -28
Repco Home Finance Hold 402 420 5 25.1 0.4 2.1 2.6 3.0 212.3 246.7 285.9 1.9 1.6 1.4 1.3 1.0 0.9 9.6 18.2 2.4 28 -35
Shriram City Union Buy 1,622 2,193 35 107.0 1.5 7.1 9.6 10.4 701.7 796.0 920.7 2.3 2.0 1.8 3.4 3.5 3.1 11.2 16.0 3.1 2 -21
Shriram Transport Buy 1,186 1,371 16 269.0 3.8 14.3 24.4 28.1 460.2 527.4 629.3 2.6 2.2 1.9 2.8 3.0 2.8 11.0 17.9 2.4 17 -6
Ujjivan Financial Hold 221 244 11 26.7 0.4 0.1 1.9 2.8 145.3 158.6 179.2 1.5 1.4 1.2 0.1 0.4 0.5 13.9 10.3 1.7 -4 -45
Insurance
ICICI Pru Life Buy 322 460 43 461.6 6.5 18.0 19.9 20.5 NA NA NA NA NA NA NA NA NA 23.2 0.3 0.0 -2 -19
ANTIQUE STOCK BROKING LIMITED FROM THE RESEARCH DESK 22 November 2018 | 17

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