Earning Review Q1FY2013

India Research

DOLAT CAPITAL

Long, Long, Longer Tunnel!!!

Dolat Research
+9122 4096 9700
research@dolatcapital.com

August 27, 2012

DOLAT CAPITAL

India Research

INDEX
SR. No.

Sectors

Page No.

Strategy

Agrochemical

11

Auto

13

Consumer

15

Financials

17

IT Services

21

Metals & Mining

25

Oil & Gas

27

Pharma

29

10

Plastics / Tiles

33

11

Valuation Matrix

37

August 27, 2012

Earning Review Q1FY2013

India Research

DOLAT CAPITAL

Long, Long, Longer Tunnel!!!

August 27, 2012

The indices continued with their rudderless moves through the earnings season,
not different from what we wrote in our earnings note dated July 3, 2012. However,
stocks / sectors did witness wider movements verses the broad market,
corroborating our view that the current market cycle is biased in favor of stock
picking (read bottoms up strategy) than macro allocations.

Given the environment, and the way we believe the next few months will shape
up, we find little justification to move away from this stock focused strategy.
Unless of course a slush of liquidity (read QE3) engulfs global markets, including
India. Hence the preference to look at sustainable earnings, visibility of non
dilutive growth and cash flow generation.(refer table I, Page no.7)

The much awaited diesel price hike is proving as elusive as ever. However with
the crude prices rallying sharply (+30%) over last month, and the currency yet
close to bottoms, it is back to the worst case for fiscal numbers. The silver
lining (literally!!) has been the improvement in the monsoon spread with the
shortfall now in mid teens. The cultivation area has also witnessed a quantum
jump to give respite.

Our sector stance remains positive on Pharma, Banks (private sector), Auto (4
wheelers), IT Services. In the negative sector stance, we include metals & mining
while consumer space is neutral.

Our preferred large cap picks have remained the same, except for an addition in
OFSS. In the mid cap space, we are adding Kajaria Ceramics as one of the
preferred names.

Our negative stance continues on Maruti.

India Research

DOLAT CAPITAL

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

August 27, 2012

India Research

DOLAT CAPITAL

Source: CSO

Source: CSO

Source: RBI

August 27, 2012

India Research

DOLAT CAPITAL

Source: EA Industry

August 27, 2012

DOLAT CAPITAL

KEY FILTERS

India Research
Companies

CAGR Sales
FY12-14E

CAGR PAT
FY12-14E

OCF >
Capex

FCF
Positive

ROE >
20%

D/E <
0.4

Astral Poly

35%

27%

Berger Paints

15%

20%

Coal India

9.5%

9%

Divis Lab

24%

26%

Hero Motocorp

11%

12%

Innoventive Ind.

23%

30%

3*

3*

IPCA Labs

17%

18%

Kajaria Ceramics

22%

30%

KPIT Cummins

35%

33%

Lupin

19%

26%

Mahindra & Mahindra

13%

5%

OFSS

22%

31%

Petronet LNG

22%

9%

PI Industries

27%

33%

Pidilite Industries

17%

26%

Supreme Industries

19%

24%

TCS

20%

18%

Tech Mahindra

13%

15%

CAGR NII

CAGR PAT

ROE >

ROA >

P/ABV

NNPA<

FY12-14E

FY12-14E

20%

1%

< 1.2

1%

19%

28%

..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................

Companies

HDFC Bank

..........................................................................................................................................................................................................................................................................................................

ICICI Bank

20%

17%

Karur Vysya Bank

22%

15%

3*

Syndicate Bank

15%

16%

..........................................................................................................................................................................................................................................................................................................
..........................................................................................................................................................................................................................................................................................................

* In FY14

August 27, 2012

August 27, 2012

363
118

150

1,182
393
579

268
275
177

2,293
7

113

157
50
258

6
35
13

1399
1102
43
57

126
2,880
1,320
850

23
242
2,584
111

HDBK
ICICI Bank
Karur Vysya Bank
Syndicate Bank

135
190

47
96

596
956
401
95

CMP
`)
(`

1,928
774

385
450

Mcap
(`
` bn)

511

627
1323
512
145

TP
`)
(`

291
313
244

1,280
468
621

180

375
152

160
3,360
1,465
1,026

150
200

2,320
861

649

CMP Target
`)
`)
(`
(`

13

Mcap
(`
` bn)

Financials

Agrochemical
PI Industries
Auto
Hero Motocorp
M&M
Consumer
Berger Paints India
Pidilite Industries
IT Services
KPIT Cummins
OFSS
TCS
Tech mahindra
Metals & Mining
Coal India
Innoventive Industries
Oil & Gas
Petronet LNG
Pharma
Divis Labs
IPCA Labs
Lupin
Plastics / Tiles
Astral Poly Technik
Supreme Industries
Kajaria Ceramics

Companies

DOLAT PREFERRED PICKS

5
38
28
53

Upside
(%)

9
14
27

8
19
7

20

16

27
17
11
20

11
5

20
11

27

Upside
(%)

122,968
107,342
9,171
50,850

FY12

5,812
28,582
13,115

18,640
23,587
70,829

226,959

624,154
7,702

142,507
139,453
10,710
56,932

NII (Rs)
FY13E

8,154
34,264
16,360

23,372
27,969
88,452

284,750

679,355
9,163

22,267
41,460
616,295
63,329

33,554
36,453

261,315
355,479

11,301

168,715
165,617
13,635
65,296

FY14E

10,706
40,108
19,609

28,809
32,441
99,729

349,600

747,521
11,241

27,333
46,965
699,216
69,997

39,281
43,035

290,746
406,905

14,097

` mn)
Net Sales (`
FY13E
FY14E

15,000
31,467
488,938
54,897

29,477
31,266

235,790
318,535

8,791

FY12

1,060
4,962
2,529

9,106
6,526
18,717

21,800

172,064
2,319

89,504
103,865
7,257
33,468

108,558
137,045
7,896
37,312

Operating Income(R)
FY12
FY13E

837
4,258
2,062

6,904
5,135
14,447

18,292

155,503
1,917

3,461
16,601
181,432
10,829

3,632
5,938

40,520
41,572

1,961

1,800
3,250

23,781
28,789

839

FY12

2,141
3,998

27,714
27,201

1,110

` mn)
PAT (`
FY13E

2,600
5,133

29,783
31,108

1,478

FY14E

128,634
157,828
10,098
41,512

FY14E

1,338
5,740
2,951

10,938
7,452
21,940

25,100

51,671
64,653
5,017
13,134

FY12

398
2,086
809

5,333
3,298
8,677

10,575

67,137
81,838
5,324
16,377

` mn)
PAT (`
FY13E

497
2,646
1,064

6,906
3,984
11,403

11,120

84,145
92,111
6,640
17,257

FY14E

640
3,202
1,376

8,498
4,557
13,872

12,080

207,909 145,476 158,650 179,590

2,921
806
969
1,366

4,140
1,454
2,127
2,567
18,641
9,092 14,098 15,678
201,470 107,662 134,307 150,759
12,249 10,954 13,092 14,530

4,368
7,418

45,001
47,482

2,517

` mn)
EBIDTA (`
FY13E
FY14E

2,172
11,111
145,352
9,194

3,034
4,836

36,188
37,707

1,479

FY12

22
21
14.5

52
32
26

15

25
16

12
168
69
103

6
8

139
46

44

29
25
18.7

64
36
31

16

28
23

14
187
77
114

8
10

149
53

59

22.0
56.1
46.8
22.9

28.6
71.0
49.7
27.2

35.9
79.9
61.9
28.7

`)
EPS(`)
FY12 FY13E FY14E

18
16
11.0

40
26
19

14

23
14

8
108
55
86

5
6

119
49

33

`)
EPS (`
FY12 FY13E FY14E

India Research
DOLAT CAPITAL

DOLAT CAPITAL

DOLAT PREFERRED PICKS

India Research
Sector

Top Picks

Large Cap
Autombile

P/E
EV/EBIDTA (x)
ROE(%)
Mcap/Sales (x)
FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E

Mahindra & Mahindra

Hero Motocorp
IT
OFSS
TCS
Metals & Mining Coal India
Pharma
Lupin
Divis Lab

15.8
16.2
26.6
24.0
15.8
29.8
29.4

Sector

P/E
EV/EBIDTA (x)
ROE(%)
Mcap/Sales (x)
FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E

Top Picks

Mid/Small Cap
Agrochemicals PI Inds
Consumer
Berger Paints
Pidilite Ind.
IT
Tech M
KPIT Cummins
Metals
Innoventive Industries
Oil & Gas
Petronet LNG
Pharma
IPCA
Plastics
Supreme Industries
Astral Poly
Kajaria Ceramics
Sector

Large Cap
Banks

15.3
26.0
29.7
10.1
15.9
8.7
10.6
15.0
16.7
15.2
16.1

16.8
13.9
17.2
19.2
14.5
22.7
22.7

11.5
21.8
24.9
8.5
10.9
7.3
10.1
12.5
13.2
12.1
12.2

14.7
12.9
15.4
17.1
12.8
18.6
18.5

8.7
18.0
19.4
7.6
9.0
5.2
9.3
10.9
10.9
9.4
9.5

12.9
10.4
18.3
17.4
10.9
18.7
22.8

10.1
16.2
19.8
9.6
9.8
7.0
9.1
10.8
9.0
6.5
7.6

11.7
9.2
12.2
13.9
9.8
14.4
17.2

7.8
13.3
16.2
8.1
6.2
5.4
7.9
8.6
7.9
5.7
6.2

10.2
8.5
10.9
12.6
7.6
12.0
14.2

6.0
10.8
12.8
7.2
5.2
4.3
7.1
7.5
6.8
4.5
5.0

25.5
65.6
15.5
37.3
39.4
23.8
27.1

31.1
22.7
24.5
18.4
21.7
25.3
28.7
28.6
33.5
24.0
31.5

20.6
53.7
20.1
36.3
35.2
25.4
29.2

29.6
22.1
24.1
17.1
25.5
19.6
27.2
28.1
33.1
23.9
32.0

20.4
42.6
18.4
32.2
32.7
25.0
29.4

30.4
22.5
26.4
16.3
24.3
23.2
24.8
25.6
31.1
24.5
31.8

1.4
1.6
7.7
5.3
3.7
3.6
8.4

1.5
1.7
3.1
2.0
1.5
0.9
0.5
2.1
1.2
0.9
1.0

1.3
1.5
5.8
4.2
3.4
2.9
6.7

1.1
1.4
2.6
1.8
1.0
0.8
0.4
1.8
1.0
0.6
0.8

1.1
1.3
5.1
3.7
3.1
2.6
5.4

0.9
1.2
2.2
1.6
0.8
0.6
0.3
1.5
0.9
0.5
0.7

Top Picks

P/E
P/ABV (x)
ROE(%)
ROA (x)
FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E

HDFC Bank
ICICI Bank

27.1
17.0

Top Picks

20.8
13.5

16.6
12.0

4.7
2.0

4.0
1.8

3.4
1.7

18.7
11.2

20.6
13.0

21.9
13.4

1.7
1.5

1.8
1.6

1.9
1.5

P/E
P/ABV (x)
ROE(%)
ROA (x)
FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E

Mid/Small Cap
Banks

Karur Vysya Bank

Syndicate Bank

8.6
4.1

8.1
3.5

6.5
3.3

1.6
0.8

1.4
0.6

1.3
0.6

20.8
17.9

18.4
18.1

20.2
16.1

1.5
0.8

1.3
0.8

1.2
0.8

* Prices as of 26th August 2012

August 27, 2012

Int
en
tio
na
lly
Le
ft B
lan
k

India Research

DOLAT CAPITAL

August 27, 2012

10

Agrochem - Top Picks

India Research

DOLAT CAPITAL

PI Industries (CMP: ` 511, TP: ` 649, Buy)

August 27, 2012

PI is well positioned to emerge as one of the credible Indian players focused on

agri-inputs (AIB) and custom synthesis manufacturing (CSM) segments which
complement each other.

The early focus on increasing skills in chemistry based processes and persistence
has led to the scale in CSM being achieved now. The order book position in
CSM stands in excess of USD 300mn and is executable over a period of three
to four years. The new plant at Jambusar SEZ is expected to be commissioned
by end of Q2FY13E and shall contribute incremental revenues of ` 500mn during
FY13.

The company lays emphasis on niche product launches and aims to replicate
success of Nominee gold (rice herbicide) with similar other future launches in
the pipeline. A new generation broad-spectrum insecticide is expected in Kharif
(addressable market opportunity of ` 5bn) in its domestic agri segment.

We expect 27% revenue CAGR over FY12-14E, aided by rising contribution

from CSM (from 43% in FY12 to 50% of sales in FY14E).

At CMP, the stock trades at 11.5x FY13E and 8.7x FY14E earnings. Recommend
Buy, with target price of ` 649 (11x FY14E EPS).

11

DOLAT CAPITAL

Annual Estimates

India Research
` mn)
Net Sales (`
FY12
FY13E
FY14E

Companies
Dhanuka
PI Industries
Rallis
Companies

5,293
8,791
12,749
Mcap
(`
` bn)

CMP
`)
(`

5
13
26

93
511
135

Dhanuka
PI Industries
Rallis

August 27, 2012

6,096
11,301
14,910

7,070
14,097
17,341

` mn)
EBIDTA (`
FY12
FY13E FY14E
795
1,479
2,126

914
1,961
2,412

1,082
2,517
2,869

` mn)
`)
PAT (`
EPS (`
FY12 FY13E FY14E FY12 FY13E FY14E
571
839
1,234

673
1,110
1,394

752 11.4
1,478 33.5
1,691 6.3

13.5
44.3
7.2

15.0
59.0
8.7

TP Upside
P/E (x)
ROE (%)
EV/EBITDA(x)
Mcap/Sales (x)
` ) (%) FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E
(`
105
649
130

13
27
(4)

8.2
15.3
21.3

6.9
11.5
18.9

6.2
8.7
15.6

29.7
26.5
23.3

28.0
29.6
23.2

25.4 6.3
30.4 10.1
23.8 13.0

5.3
7.8
11.4

4.3
6.0
9.5

0.9
1.5
2.1

0.8
1.1
1.8

0.7
0.9
1.5

12

DOLAT CAPITAL

Auto
Top Picks
India- Research

Hero Motocorp (CMP: ` 1935, TP: ` 2320, Buy)

z

Strong brands: The Indian market predominantly favours 100cc motorcycles;

almost 75% of total sales belong to this category. Splendor and Passion continue
to drive HMCs sales, contributing ~45% to volumes. After splitting from Honda,
these brands will remain a part of the Hero Group.

Deep penetration in rural India: In its 2012 annual report, Hero Hondas total
distribution network in the country (including dealers, sales and service network)
numbered 5,100, covering over 100,000 villages.

Focus on scooters: Hero Honda currently sells around 36,000 scooters a month.
With only one model, it is already the second largest player in this segment
also. It has recently launched Maestro to appeal to the male segment.

Export potential: Hero currently exports ~200,000 motorcycles a year compared

to Bajaj Autos ~100,000 a month. Bajaj Autos offering in global markets is a
value proposition (US$500-600/motorcyle). With the split, the company would
not find it difficult to match Bajajs offering, in turn boosting its volumes. The
company is sprucing up its sales network in the export markets. All exports to
international markets will be made under the brand name Hero. More emphasis
is being laid on existing export markets. Several countries have been identified in
Africa, Latin and Central America as potential international markets.

We expect revenue to grow at a CAGR of 11% and PAT at 12% over FY1214. The stock currently trades at 12.9xFY14E. We recommend Buy.

Mahindra & Mahindra (CMP: ` 744, TP: ` 808, Buy)

z

We remain bullish on M&M as it continues to post robust growth. With launches

(Yuvraaj, the new SUV, GIO, Maxximo and Mahindra Navistar trucks) and new
markets, we expect the growth momentum to continue.

The company expects tractor sales to slow-down a bit in FY13. We expect the
tractor segment to grow at a CAGR of 8-10% over FY12-14. Our theory is based
on macro factors such as shortage of labour due to successful implementation
of government scheme (NREGS), stable MSP bringing in higher rural income,
higher cash sales (tractor financing now only ~75% of total sales compared to
~92% last year).

We expect revenue to grow at a CAGR of 13% and PAT at 5% (lower tax

benefit) over FY12-14. The stock currently trades at 14.7xFY14E
(standalone). We recommend Accumulate.

Maruti Suzuki (CMP: ` 1185, TP: ` 977, Sell)

August 27, 2012

We expect a slowdown in Maruti Suzukis (MSILs) future earnings growth due

to increasing macro headwinds (rising competition, rising fuel prices and a highbase effect) and continued pressure on margins (higher commodity prices and
unfavourable currency movements).

The management has asserted that macro headwinds continue to affect demand
that it is witnessing a slowdown in demand.

The companys market share in the passenger car market has come down from
49.4% in Dec 2010 to 43.1% in July 2012.

With the recent unrest at Manesar, and no clarity on the labour policy, the
company continues to get affected adversely. Also, wage negotiation is due
which may further add pressure on its margins.

We maintain Sell.
13

DOLAT CAPITAL

AnnualResearch
Estimates
India
Companies
FY12
Hero Motocorp
Bajaj Auto
TVS Motors
Maruti Suzuki
M&M
Tata Motors
Ashok Leyland
Eicher Motors
Escorts

` mn)
Net Sales (`
FY12
FY13E
FY14E

Auto Ancs
Apollo Tyres
Bharat Forge
Exide Inds

121,533
36,860
51,110

Mcap
(`
` bn)

Hero Motocorp
Bajaj Auto
TVS Motors
Maruti Suzuki
M&M
Tata Motors
Ashok Leyland
Eicher Motors
Escorts
Companies

` mn)
EBIDTA (`
FY12
FY13E FY14E

FY12

` mn)
PAT (`
FY13E FY14E

235,790 261,315 290,746 36,188 40,520 45,001 23,781 27,714

195,290 216,033 239,012 37,196 41,363 45,771 30,037 33,832
71,262
72,155
78,470
4,694
4,369
4,857
2,491
2,115
355,871 426,324 496,199 25,129 36,766 42,430 16,351 22,514
318,535 355,479 406,905 37,707 41,572 47,482 28,789 27,201
1,656,545 1,765,232 2,006,304 237,005 208,636 233,191 135,165 106,660
128,420 142,287 156,883 12,561 13,107 14,480
5,660
5,312
57,160
66,487
77,430
5,935
7,221
8,506
3,088
3,471
41,234
42,225
45,548
2,035
1,477
1,455
1,264
555

Companies

Companies

` mn)
Net Sales (`
FY13E
FY14E

385
501
19
342
450
775
59
59
6

CMP
`)
(`

CMP
`)
(`

49
63
116

97
285
136

August 27, 2012

148,969
46,406
63,522

11,661
9,168
6,879

13,346
10,061
9,329

14,835
11,482
10,417

29,783 119.1 138.8 149.1

37,044 103.8 116.9 128.0
2,391
5.2
4.5
5.0
25,656 56.6 77.9 88.8
31,108 48.9 46.2 52.8
116,466 42.4 33.5 36.5
6,324
2.1
2.0
2.4
4,039 114.6 128.8 149.9
603 12.4
5.4
5.9

` mn)
PAT (`
FY12 FY13E FY14E
4,121
3,621
4,612

5,034
4,613
6,423

5,886
5,458
7,209

`)
EPS (`
FY12 FY13E FY14E
8.2
15.5
5.4

10.0
19.8
7.6

11.7
23.4
8.5

TP Upside
P/E (x)
ROE (%)
EV/EBITDA(x)
Mcap/Sales (x)
` ) (%) FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E
(`

1,928 2,320
1,730 1,536
40
44
1,184 977
774 861
243 292
22
27
2,195 2,249
63
77

Mcap
(`
` bn)

Auto Ancs
Apollo Tyres
Bharat Forge
Exide Inds

134,759
40,723
57,104

` mn)
EBIDTA (`
FY12
FY13E FY14E

`)
EPS (`
FY12 FY13E FY14E

20
-11
10
-17
11
20
23
2
22

16.2
16.7
7.6
20.9
15.8
5.7
10.3
19.2
5.1

13.9
14.8
9.0
15.2
16.8
7.3
11.0
17.0
11.6

12.9
13.5
7.9
13.3
14.7
6.7
9.3
14.6
10.7

65.6
53.2
23.1
11.2
25.5
52.1
13.9
22.1
7.7

53.7
46.3
17.1
13.8
20.6
28.9
12.3
20.1
3.2

42.6
39.7
17.2
13.9
20.4
25.3
13.8
19.4
3.4

10.4
13.1
5.6
12.8
12.9
4.2
7.5
7.5
3.9

9.2
11.9
6.2
8.7
11.7
5.1
7.3
5.8
5.0

8.5
10.6
5.5
7.4
10.2
4.1
6.3
4.6
4.9

1.6
2.6
0.3
1.0
1.4
0.5
0.5
1.0
0.1

1.5
2.3
0.3
0.8
1.3
0.4
0.4
0.9
0.1

1.3
2.1
0.2
0.7
1.1
0.4
0.4
0.8
0.1

TP Upside
P/E (x)
ROE (%)
EV/EBITDA(x)
Mcap/Sales (x)
` ) (%) FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E
(`
105
328
158

8
15
16

11.9
18.3
25.1

9.7
14.4
18.0

8.3
12.2
16.0

16.1
16.9
15.8

17.0
18.4
19.1

17.1 6.4
18.5 8.6
18.2 16.7

5.0
7.5
12.3

4.5
6.4
10.9

0.4
1.7
2.3

0.4
1.6
2.0

0.3
1.4
1.8

14

CONSUMER
- Top Picks
India Research

DOLAT CAPITAL

Berger Paints (CMP ` 137, TP `150, Accumulate)

z

We continue to prefer paints sector over other consumer segments on back of

sustained volume growth and huge opportunity of consumer up-trading.

Berger Paint is focusing on converting its product portfolio towards the premium
category from the current mid range segment. We expect the share of water
based paints in the overall pie to gain by 100-200 bps every year, driving margins
and profitability.

Berger Paint is expanding its capacity 250,000 tonnes to half a million tonnes
over the next three years. This shall be internally funded, and help it to sustain
market share.

We estimate revenue and net earnings CAGR of 15% and 20% respectively
during FY12-14E, led by volume growth of 11-12% over the next couple of years.
We are also building in 30 bps operating margins gains for FY13.

We recognize that the stock has had gained in valuations over the last few
months (+60% vs flat performance by BSE 200 YTD). However our medium
term stance on the stock trades at 22x FY13E EPS of ` 6.2 and 18x FY14E
EPS of ` 7.5. Remains our preferred pick in the India consumer space.

Pidilite Industries (CMP ` 190, TP ` 200, Accumulate)

August 27, 2012

Pidilite, a proxy on housing, construction and other industrial activity has over
the years successfully converted niche commodity category into strong brands.

The company is now extending its strategy in construction chemicals with its
brand Dr Fixit. Construction chemical provides a huge opportunity and Pidilite
with a focus on retail water proofing segment is well placed to take advantage of
this opportunity.

Our assumptions are based on growth of 25% CAGR in construction chemical

and 19% for the adhesive FY12-14E. We are also building in a positive bias for
the margins at operating level to the extent of 177bps during FY12-14E.

We believe uncertainty with respect to elastomer project would remain an

overhang on the stock.

We estimate a Revenue and PAT CAGR of 17% and 26% respectively during
FY12-14E. The stock trades at 25x FY13E EPS of ` 7.6 and 19x FY14E EPS
of ` 9.8.

15

DOLAT CAPITAL

AnnualResearch
Estimates
India
` mn)
Net Sales (`
FY12
FY13E
FY14E

Companies

Asian Paints
96,322
Berger Paints India 29,477
Dabur
52,922
GCPL
48,662
HUL
221,205
ITC
251,488
Jyothy Lab
9,126
Marico
40,083
Page Ind.
6,834
Pidilite Ind.
31,266

Companies

Mcap
(`
` bn)

Asian Paints
Berger Paints
Dabur
GCPL
HUL
ITC
Jyothy Lab.
Marico
Page Ind.
Pidilite Ind.

352 3,670 3,824

47
135 150
218
123 128
225
661 660
1,155
522 520
2,042
264 263
26
162
UR
123
192 208
33 3,000 3,204
96
190 200

August 27, 2012

CMP
`)
(`

107,400
33,554
62,198
58,819
257,202
287,777
13,848
47,910
8,612
36,453

123,119
39,281
73,947
69,167
288,979
328,753
15,988
57,284
10,774
43,035

EBIDTA (Rs mn)

FY12
FY13E
FY14E

` mn)
`)
PAT (`
EPS (`
FY12
FY13E FY14E FY12 FY13E FY14E

15,088 17,390 19,923

9,887
3,034
3,632
4,368
1,800
8,532 10,796 12,500
6,447
8,759 10,562 12,536
5,716
32,897 40,213 45,363 25,640
90,021 106,626 124,263 61,565
837
1,847
2,150
446
4,849
6,559
8,183
3,182
1,330
1,729
2,179
900
4,836
5,938
7,418
3,250

11,320 13,018 106.4 121.9 140.5

2,141
2,600 5.2
6.2
7.5
8,171
9,695 3.7
4.7
5.6
7,350
8,832 16.8 21.6 26.0
32,380 37,010 11.6 14.6 16.7
71,725 84,601 8.0
9.3 10.9
780
1,093 2.8
4.8
6.8
4,229
5,363 5.2
6.6
8.3
1,136
1,429 80.7 101.8 128.2
3,998
5,133 6.4
7.6
9.8

TP Upside
P/E (x)
ROE (%)
EV/EBITDA(x)
Mcap/Sales (x)
` ) (%) FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E
(`
4
11
4
-2
-4
-4
8
7
5

34.5
26.0
33.2
39.4
45.1
33.2
58.9
37.1
37.2
29.7

30.1
21.8
26.2
30.6
35.7
28.5
33.8
29.2
29.5
24.9

26.1
18.0
22.1
25.5
31.2
24.1
24.0
23.0
23.4
19.4

36.0
22.7
41.2
24.1
75.7
36.1
7.0
32.3
62.2
24.5

32.2
22.1
41.5
20.4
65.7
36.9
12.0
29.1
59.2
24.1

30.6
22.5
39.8
20.6
61.3
38.0
14.0
26.5
56.9
26.4

22.9
16.2
25.1
27.6
33.7
22.0
40.0
25.2
25.6
19.8

19.7
13.3
20.1
21.7
27.1
18.4
20.0
19.2
19.7
16.2

16.9
10.8
17.1
17.9
23.7
15.7
18.0
15.2
15.5
12.8

3.6
1.7
4.0
5.0
5.1
8.0
2.7
3.0
4.9
3.1

3.2
1.4
3.5
3.9
4.3
6.9
1.8
2.6
3.9
2.6

2.7
1.2
2.9
3.2
3.8
6.0
1.6
2.2
3.1
2.2

16

Financials
- Top Picks
India Research

DOLAT CAPITAL

ICICI Bank (CMP: ` 956, TP : ` 1323, Buy)

z

ICICI Banks traction in business expansion, improvement in margin, reduction

in credit cost and decrease in leverage (with expansion in balance-sheet size)
would yield higher return ratios going forward in our opinion.

We expect credit book to expand in high teens (20% CAGR during FY12-14E)
driven by SME, retail & working capital requirements.

We expect the bank to to record NIM of 2.8-2.9% on the back of higher yield on
investments, reduction in losses on securitized book, traction in overseas
business and stability in CASA deposit share.

We expect that the banks other income to grow by 17% CAGR over FY12-14E
on the back of healthy core fee income.

With tier I capital of 12.8% (as on end-June12), the bank is adequately

capitalized. The bank would not be required to raise equity capital in near future

We find valuation attractive of 1.7x FY14 ABV. Hence offer an opportunity to add
to the positions. At current price, the stock quotes at 1.8x and 1.7x adjusted
book value (ABV) FY13 and FY14 respectively. Based on our price target of `
1323, the stock will trade at 2.6x and 2.3x ABV FY13 and FY14 respectively

HDFC Bank (CMP: ` 596, TP : ` 627, Buy)

August 27, 2012

HDBKs diversified credit book with prudent expansion strategy has led to healthy
yield and minimal delinquencies. High low-cost deposits share contain erosion
in margin and also aides the bank to cross-sale its other products to huge lowcost depositors base. We expect credit to expand faster than the system at
CAGR of 21% over FY12-14

Slight re-balancing in credit book in favor of high-yielding assets aided yield on

advances (mainly due to higher composition of retail loan book). Higher asset
yield and expansion in C-D ratio aided margin. Going forward, we expect NIM to
stabilize at 4.2% on yearly average basis

Majority of fee income comes from various retail segment and is quite diversified.
Incremental adverse impact on the banks fee income would be muted

HDBK has demonstrated robust performance on asset quality front GNPA &
restructured loan book remained almost stagnant. The bank has been maintaining
most comfortable asset quality amongst the peer group with GNPA at 0.97%
and NNPA at 0.2%. Total restructured assets were 0.3% of the banks gross
advances as of Q1 FY13

At current price, the stock quotes at 4.0x and 3.4x adjusted book value (ABV)
FY13E and FY14E respectively. Based on our target price of ` 617, the stock
would trade at 4.2x and 3.6x ABV FY13E and FY14E respectively

17

Financials
- Top Picks
India Research

DOLAT CAPITAL

Karur Vysya Bank (CMP: ` 401, TP : ` 512, Buy)

z

Karur Vysya Banks better understanding of clienteles business domain and

widespread regional presence are the key strengths. Continued robust credit
book expansion and contained delinquencies have been key outcomes of the
banks strengths

We expect the banks credit book to expand by 28% cagr in FY12-14 much
higher than the industry. Key focus area would be retail trade, SME and agriculture
sectors

In Q1 FY13, KVBs margin drifted by 22bps QoQ to 2.82% on higher cost of

funds, however going forward, moderation in deposit growth and increase in
credit-deposit ratio would protect erosion in margin. Though, the decline in CASA
share remain our near term concern. We factor margin to drift by 26bps to
2.62% (on yearly average basis), as a conservative stance

We expect GNPA to hold in the current level even as the marginal pressure on
asset quality would be mitigated by higher recoveries and upgradations

At current price, the stock quotes at 1.4x and 1.3x adjusted book value (ABV)
FY13 and FY14 respectively. Based on our price target of ` 512, the stock will
trade at 1.8x and 1.6x ABV FY13 and FY14 respectively

Syndicate Bank (CMP: ` 95, TP : ` 145, Buy)

August 27, 2012

Syndicate Banks management plans to expand credit book faster than the
industry, in the range of 18-19% and retail credit book would grow at even faster
pace of 22%. Key focus area for credit growth would be retail, MSME and midcorporate. We expect credit book to grow 17.4% CAGR in FY12-14. Faster
expansion in retail and MSME books would aid asset yield and margin

The bank plans to increase its CASA share by 100-125 bps to 32% mark. Also,
re-pricing of bulk deposits and CD at lesser rated would aid margin erosion in
declining interest rate scenario.

The banks management expects 15bps decline in margin to 3.25% from 3.4%
in FY12. We factor in 10 bps decline in margin to 2.96% (on yearly average
basis) primarily due to decline in interest rates and re-pricing lag of liabilities

On the back of higher loan growth and alignment of processing charges with
peers, fee income is expected to revive. We expect the banks other income to
grow by 13% YoY in FY13

As on June12, the banks asset quality improved on sequential basis; further

higher PCR provides comfort for future NPL provisioning. The banks management
expects to do a substantial recoveries in FY13

At current price, the stock quotes at 0.65x and 0.56x adjusted book value (ABV)
FY13 and FY14 respectively. Based on our price target of ` 145, the stock will
trade at 1.0x and 0.9x ABV FY13 and FY14 respectively

18

DOLAT CAPITAL

Annual Estimates

India Research
Companies
FY12
Andhra Bank
Axis Bank
BoI
Canara Bank
City Union Bank
HDBK
ICICI Bank
IOB
Karur Vysya Bank
OBC
PNB
SBI
Syndicate Bank
Union Bank

Companies

37,593
80,177
83,134
76,893
4,998
122,968
107,342
50,162
9,171
42,158
134,144
432,911
50,850
69,089

Mcap
(`
` bn)

Andhra Bank
53
Axis Bank
445
BoI
157
Canara Bank
148
City Union Bank
21
HDBK
1399
ICICI Bank
1102
IOB
56
Karur Vysya Bank 43
OBC
67
PNB
241
SBI
1271
Syndicate Bank
57
Union Bank
88

August 27, 2012

CMP
`)
(`

` mn)
NII (`
FY13E
40,377
97,289
88,731
82,397
5,989
142,507
139,453
54,905
10,710
45,609
145,683
452,900
56,932
72,874

FY14E

` mn)
Operating Income (`
FY12
FY13E FY14E

46,921 28,150 29,052 33,155

114,277 74,309 90,240 105,330
100,918 66,939 69,861 78,581
95,487 59,432 62,099 71,002
7,335
4,271
4,901
5,718
168,715 89,504 108,558 128,634
165,617 103,865 137,045 157,828
61,526 35,341 37,081 40,360
13,635
7,257
7,896 10,098
52,725 31,406 33,052 38,033
170,574 106,143 108,582 124,425
515,503 315,735 340,073 387,988
65,296 33,468 37,312 41,512
84,207 52,538 50,697 57,079

` mn)
`)
PAT (`
EPS (`
FY12 FY13E FY14E FY12 FY13E FY14E
13,447 12,933
42,422 50,797
26,775 21,113
32,827 32,833
2,803
3,161
51,671 67,137
64,653 81,838
10,502
9,618
5,017
5,324
11,416 11,495
48,842 46,585
117,073 126,121
13,134 16,377
17,871 15,557

14,703
58,961
20,993
36,232
3,751
84,145
92,111
10,537
6,640
15,440
58,184
155,791
17,257
17,766

24.0 23.1 26.3

102.9 122.6 143.5
46.6 36.7 36.5
74.1 74.1 81.8
6.9
7.1
8.4
22.0 28.6 35.9
56.1 71.0 79.9
13.2 12.1 13.2
46.8 49.7 61.9
39.1 39.4 52.9
144.0 137.3 171.5
184.3 187.9 232.2
22.9 27.2 28.7
32.5 28.3 32.3

TP Upside
ROE (x)
ROA (%)
P/E(x)
P/ABV (x)
` ) (%) FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E
(`

95 145
1076 1582
273 250
333 496
51
68
596 627
956 1323
71
83
401 512
231 325
712 912
1895 1810
95 145
159 163

52
47
-9
49
33
5
38
17
28
41
28
-4
53
2

19.2
20.3
15.6
17.0
24.9
18.7
11.2
11.1
20.8
10.7
21.1
15.7
17.9
13.2

16.3
20.4
10.6
14.9
21.5
20.6
13.0
8.6
18.4
10.0
16.5
14.2
18.1
10.3

16.4
20.1
9.4
14.6
20.2
21.9
13.4
8.9
20.2
12.2
17.8
15.6
16.1
10.9

1.1
1.6
0.7
0.9
1.7
1.7
1.5
0.5
1.5
0.7
1.2
0.9
0.8
0.7

1.0
1.6
0.5
0.8
1.5
1.8
1.6
0.4
1.3
0.6
0.9
0.9
0.8
0.6

0.9
1.6
0.4
0.8
1.5
1.9
1.5
0.4
1.2
0.7
1.0
0.9
0.8
0.5

4.0
10.5
5.9
4.5
7.4
27.1
17.0
5.4
8.6
5.9
4.9
10.3
4.1
4.9

4.1
8.8
7.4
4.5
7.2
20.8
13.5
5.9
8.1
5.9
5.2
10.1
3.5
5.6

3.6
7.5
7.5
4.1
6.1
16.6
12.0
5.4
6.5
4.4
4.2
8.2
3.3
4.9

0.8
2.0
1.0
0.9
1.7
4.7
2.0
0.6
1.6
0.7
1.0
1.7
0.8
0.8

0.7
1.7
0.9
0.8
1.4
4.0
1.8
0.6
1.4
0.7
0.9
1.7
0.6
0.8

0.6
1.4
0.8
0.7
1.2
3.4
1.7
0.6
1.3
0.6
0.8
1.4
0.6
0.7

19

Int
en
tio
na
lly
Le
ft B
lan
k

India Research

DOLAT CAPITAL

August 27, 2012

20

IT Services - Top Picks

India Research

DOLAT CAPITAL

TCS (CMP: ` 1315, TP: ` 1465, Buy)

Outperformance to continue: Remains one of our preferred picks inspite of
its outperformance over the last year led by better revenue CQGR of 5.8% over
Q1FY11-Q1FY13 (Infy 4%; Wipro 3.5%).
Confidence intact: The management continues to remain overall confident in
its commentary, and feels that the high base would not be hindrance for high
growth in coming period. Healthy pipeline and strong deal win ratio provide the
much needed comfort for medium term visibility.
Sustained Efficiencies: We do see limited scope for it to better key matrix
drivers from here on it has best utilized various operating levers over last ten
quarters and has gained over 440bps on operating profitability. The offshore/fix
price contract efforts has increased by over 300bps in last 10 quarters and
Utilization has improved by 440bps during the same period. Hence, from here
on we believe it shall be the revenue growth that shall be driving the earnings
than the operating efficiencies.
Valuation: Maintain our Buy rating on the stock with a target price of `1465,
valued at 19x its FY14E.

OFSS (CMP: ` 2880, TP: ` 3360, Buy)

Wins Wells Fargo International rollout: OFSS has confirmed its major win
with Wells Fargo for global rollout comprising its commercial and corporate
banking. This win (if without US) in our opinion is definitely important in terms
of business opportunity but still lacks the criticality of getting an account in
underpenetrated US market (till date only 2 banks in US have implemented
integrated 3rd party CBS).
More to follow: OFSS continue to remain positive on the pipeline they hold
and competitive positioning in the segment and expects sustained deal
momentum in near term amidst global uncertainty. We believe company specific
challenges would continue to trouble peers (Temenos - management change
issues; Mysys initial management cashed out to PE investors) ensuring
favourable positioning of OFSS.
Services to stabilise: Revenue from services grew 27% QoQ to ` 2.1bn which
management believes has no one offs in it and reiterates its stability sustenance
in the business segment going forward on annualized basis. We believe typical
lumpiness in its services business would lead to some hits and misses but net
addition of employees in the quarter (after a gap of 8 quarters) indicates some
ramp ups in near term.
OPM gains to extend: OFSS continue to remain confident on high earning
quality across its revenue streams as it gets incrementally aligned to its parents
practices. It continue to restrict itself for high margin business in services segment
(EBIT Margin of over 27%) and is signing all new AMCs at 22% (inline with
Oracle; portfolio rate at about 19%). We expect further gains in OPM of about
400bps in FY13/14 in view of product revenue share reaching 76% contribution
to revenues (versus 66%/72% in FY11/12).
Valuation: We have build in Licence revenues of USD 101mn/ 119mn for FY13/
14E which in our opinion is conservative in view of recent wins and strong
opportunities across markets (specifically China and LATAM). We maintain our
BUY and sector Outperformer rating on the stock with a target price of ` 3360
valued at 18x of its FY14E earnings.
August 27, 2012

21

IT Services - Top Picks

India Research

DOLAT CAPITAL

Tech Mahindra (CMP: ` 850, TP: ` 1026, Buy)

Clouds clearing: We believe that as FY13 unfolds, the merged entity hangovers
(weak demand in telecom, high client concentration (BT), stagnancy in top
accounts and settlement of various claims/cases on Satyam) will recede and
would lead to re-rating of the stock.
Synergy: Tech Mahindra will benefit from cross sell opportunities, wherein it
will sell its managed services capabilities to Mahindra Satyams clients and
leverage the enterprise services strength of Satyam for its telco clients. It has
been able to bag a few deals on its integrated strength in FY12.
Traction to continue: Mahindra Satyam has witnessed strong deal traction in
FY12 and would see the sustenance in FY13 as it has overcome the pre bid
qualification hindrance of maintaining the last three years financials. This criterion
restricted its qualifications on various contracts prior to the Q4 FY11 results.
Near term outlook: The Q1 results (ex-Satyam) were in line with our estimates
but the muted outlook in the managements commentary indicates slower
recovery in business ramp-up in the Telecom vertical. However, the compelling
valuation (8x FY14E EPS) and declining share of BT (just 36%) is providing the
much needed solace.
Valuations: We maintain our positive view on the stock with a Buy rating at a
revised target price of 1026 (earlier valued at 9x), valued at 10x of FY14E earnings.

KPIT Cummins (CMP: ` 126, TP: ` 160, Buy)

Strong Outlook for FY13: It has retained its annual guidance and would review
post Q3 which we believe is quite conservative as it implies a modest 3% QoQ
growth for rest of the year. The PAT guidance is also quite conservative at ` 1.7bn
(achieved 35% of its guidance in Q1 itself).
Strong Enterprise Solution capabilities: KPIT is targeting for USD 100mn
revenue from its Oracle practice in the manufacturing sector through consulting
edge, domain expertise and references (through the acquisition of SYSTIME
and CPG).
Systime growth: Systime integration is in sync with the expected lines as it
clocked quarterly revenues of USD 14.7mn and EBITDA Margin of 10% in Q1. The
company expects sustained growth in the JDE business practice and may end
up year with a 20%+ growth for the full year.
Revoloution on the cards: KPIT has resolved issues relating to battery
management and is now confident of achieving desired efficiency across battery
type - lead acid and lithium ion varieties. Negotiations with OEMs and fleet
operators (retrofitter) are on track (will test 200 vehicles over next 6 months) but
expect commercialization to begin in second half of FY14.
Margin to improve further: The Company has sticked on to its margin outlook
(EBITDA Margin 15.5-16%) but we believe it would possibly gain on it considering
sustained utilizations and business segment optimizations.
Valuation: We maintain our positive view on the stock and has built in Revenue/
PAT CAGR of 36%/33% over FY12-14E. We maintain our Buy rating on the
stock with a Target Price of ` 160, valued at 11x of its FY14E earnings inline
with its current PE multiple in view of its sustained financial outperformance and
potential trigger in form of Revelo.
August 27, 2012

22

DOLAT CAPITAL

Annual Estimates

India Research
Companies
FY12
Infosys
TCS
Wipro
HCL Tech
Tech mahindra
Mphasis
Mindtree
OFSS
Persistent
KPIT Cummins

Companies

337,340
488,938
371,971
210,312
54,897
50,980
19,139
31,467
10,003
15,000

Mcap
` bn)
(`
Infosys
1397
TCS
2584
Wipro
889
HCL Tech
376
Tech mahindra
111
Mphasis
79
Mindtree
29
OFSS
242
Persistent
15
KPIT Cummins
23

August 27, 2012

` mn)
Net Sales (`
FY13E
FY14E

CMP
`)
(`
2440
1320
363
558
850
376
707
2880
377
126

401,027
616,295
432,631
255,491
63,329
55,530
23,572
41,460
12,553
22,267

` mn)
EBIDTA (`
FY12
FY13E FY14E

FY12

` mn)
PAT (`
FY13E FY14E

`)
EPS (`
FY12 FY13E FY14E

454,626 97,790 111,025 124,099 83,160 94,934 105,517 145.4 166.0 184.5
699,216 145,352 181,432 201,470 107,662 134,307 150,759 55.0 68.6 77.0
480,771 64,013 73,980 80,529 55,987 64,846 72,519 22.8 26.4 29.5
294,787 40,252 46,217 54,386 25,261 29,210 34,807 36.6 42.3 50.4
69,997
9,194 10,829 12,249 10,954 13,092 14,530 85.9 102.7 114.0
62,296
9,845 10,453 11,853
8,218
7,977
8,693 39.1 38.0 41.4
27,041
2,775
3,763
4,196
2,256
3,166
3,535 56.4 79.2 88.4
46,965 11,111 16,601 18,641
9,092 14,098 15,678 108.3 167.9 186.7
14,861
2,324
3,161
3,668
1,418
1,829
2,106 35.4 45.5 52.4
27,333
2,172
3,461
4,140
1,454
2,127
2,567
8.2 11.9 14.4

TP Upside
P/E (x)
ROE (%)
EV/EBITDA(x)
Mcap/Sales (x)
`
(` ) (%) FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E
2765 13
16.8 14.7 13.2 28.0 26.3 25.1 12.1 10.7
9.6 4.1
3.5
3.1
1465
11
24.0 19.2 17.1 37.3 36.3 32.2 17.4 13.9 12.6 5.3
4.2
3.7
385
6
15.9 13.8 12.3 21.3 21.0 20.2 13.0 11.3 10.4 2.4
2.1
1.8
630 13
15.3 13.2 11.1 26.4 24.7 24.4 9.4
8.2
7.0 1.8
1.5
1.3
1026 20
10.1
8.5
7.6 18.4 17.1 16.3 9.6
8.1
7.2 2.0
1.8
1.6
357
-5
9.6
9.9
9.1 24.0 19.2 17.9 7.0
6.6
5.8 1.5
1.4
1.3
700
-1
12.5
8.9
8.0 25.4 27.5 23.9 8.0
5.9
5.3 1.5
1.2
1.1
3360 17
26.6 17.2 15.4 15.5 20.1 18.4 18.3 12.2 10.9 7.7
5.8
5.1
472 25
10.6
8.3
7.2 17.5 19.2 18.8 4.5
3.3
2.9 1.5
1.2
1.0
160 27
15.9 10.9
9.0 21.7 25.5 24.3 9.8
6.2
5.2 1.5
1.0
0.8

23

Int
en
tio
na
lly
Le
ft B
lan
k

India Research

DOLAT CAPITAL

August 27, 2012

24

Metals
and Mining - Top Picks
India Research

DOLAT CAPITAL

Coal India (CMP: ` 363, TP: ` 386, Accumulate)

Level of delivery
/lifting of coal (% of
ACQ)
=65<80
=60<65
=55<60
=50<55
<50

Penalty (% of
shortfall)
1.5
5
10
20
40

We continue to like Coal India given the sustained earnings growth, largely
immune to changes in international coal prices, and is operating in a coal deficit
scenario.

CIL revised its penalty structure from the earlier 0.01% to anywhere between
1.5 -40%, depending on the level of shortfall. Consequently, CIL would be required
to pay 1.5% of the shortfall value if delivered quantity is between 65-80% of the
annual contracted quantity (ACQ), while in the worst case scenario, the penalty
would be as high as 40% if CIL supplies below 50% of ACQ.

Given the targeted output, we believe CIL will be able to deliver coal to the power
plant above the 65% level and avoid any meaningful penalty.Coal India has
insulated itself from any major financial penalty in case of not being able to fulfill
the FSA with power producers with graded penalty structure. Moresoever it
would be able to recover the high cost of the imported coal from power producer
through the price pooling for its customers.

Realizations for coal supplied through FSA have increased by 7.0%YoY/1%QoQ

to ` 1266 per tonne in Q1FY13 despite being no official increase in the notified
prices by CIL. We believe full effect of recent hike in coal prices at Western
collieries will lead to further increase realisations in Q2FY13.

We expect CIL earnings to grow at a 9%CAGR primarily driven by volumes and

productivity growth. We expect CIL will grow its volumes at a CAGR of 5-6%
over next five yrs given the thrust at the government level, expect faster clearances
from the environment and forest ministry.

CIL is currently trading at 14.5xFY13EPS and 12.8xFY14EPS (without adjusting

for OBR) and 12.5xFY13EPS and 11.6x FY14 of its core EPS. We maintain our
Accumulate rating and a target price of ` 386 for CIL (11xFY14EPS adj, for
OBR and other income+ ` 113 cash per share). At the target prices CIL will
trade at 6.8xFY14EV/EBITDA (adj for OBR) which is at premium to the global
peers and is justified given the pricing power, low cost of operations and long
mine life. The implementation of the MMDR Act and lower than expected
dispatches are the key risks to our view and estimates

Innoventive Industries (CMP: ` 118, TP: ` 137, Buy)

August 27, 2012

In the mid / small cap segment, we continue to maintain our positive stance on
Innoventive Industries given its cost leadership in CEW tubes through pilgering
process and its focus on innovation to develop new markets for its products.

Innoventive has got the patent for its pilgering process in India and has started
supplying its membrane panel strips to Alstom globally.

Innoventive is expanding its distribution strength in developed markets through

acquisition like Salem Steel in USA, which will help it establish markets for its
CEW tubes and increase its margins.

We expect IIL revenue CAGR of 21% and earnings CAGR of 30% over FY1214E led by expansion in CEW tubes and strong traction in OCTG products and
reduction in interest cost. We maintain our Buy on IIL with a price target of `
137 (6x FY14EPS)

25

DOLAT CAPITAL

Annual
Estimates
India Research
Companies
FY12

` mn)
Net Sales (`
FY13E
FY14E

` mn)
EBIDTA (`
FY12
FY13E FY14E

Coal India
624,154 679,355 747,521 155,503 172,064 207,909
Hindalco Industries 808,214 774,944 846,324 81,894 86,302 98,779
Hindustan Zinc
112,551 125,456 132,243 59,193 63,225 67,335
Jsw Steel
343,681 379,469 418,177 61,019 64,866 71,114
Jindal Steel
181,665 201,638 242,118 69,452 74,002 86,995
MOIL
8,996
9,208
9,865
4,332
4,322
4,456
Sesa Goa
83,101
78,206
80,926 35,001 25,249 29,513
SAIL
456,540 542,004 629,971 54,230 66,677 89,717
Sterlite Ind.
411,789 415,034 442,274 98,633 108,227 122,299
Tata Steel
1,328,997 1,365,255 1,462,389 124,168 155,648 187,031
Usha Martin
33,608
38,858
44,190
4,338
5,092
7,183
Mah. Seamless
22,918
24,193
28,795
3,949
4,090
5,283
Jindal Saw
52,912
61,483
73,880
6,269
9,925 13,450
Ratnamani Metals
12,217
12,123
13,509
2,051
2,055
2,413
Innoventive Ind.
7,702
9,163
11,241
1,917
2,319
2,921

Companies

Mcap CMP
` bn)
`)
(`
(`

Coal India
2,293
Hindalco
213
Hindustan Zinc
549
Jsw Steel
165
Jindal Steel
371
MOIL
41
Sesa Goa
167
SAIL
347
Sterlite Ind.
377
Tata Steel
377
Usha Martin
7
Mah. Seamless
23
Jindal Saw
33
Ratnamani Metals
5
Innoventive Ind.
7

August 27, 2012

363
111
130
738
397
243
192
84
112
388
25
333
120
112
118

FY12

` mn)
`)
PAT (`
EPS (`
FY13E FY14E FY12 FY13E FY14E

145,476 158,650 179,590 23.0

33,474 28,375 27,265 17.5
54,190 57,702 65,835 13.1
5,377
7,916 15,414 24.1
39,178 40,618 41,707 41.9
4,108
4,068
4,256 24.5
26,955 33,971 37,509 25.0
35,512 35,767 40,556 8.6
48,279 49,051 57,597 14.4
53,898 32,863 49,288 55.5
36
193
872 0.1
3,174
3,126
4,005 45.0
2,242
4,744
6,804 13.2
1,114
977
1,135 23.7
806
969
1,366 13.5

25.1
14.8
13.7
35.5
43.5
24.2
17.5
8.7
14.6
33.8
0.6
44.3
17.2
20.8
16.2

28.4
14.2
15.6
69.1
44.6
25.3
21.3
9.8
17.1
50.7
2.9
56.8
24.6
24.1
22.9

TP Upside
P/E (x)
ROE (%)
EV/EBITDA(x)
P/BV (x)
` ) (%) FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E
(`
386
120
134
660
410
282
190
90
114
450
26
390
137
125
137

6
15.8
8
6.3
3
9.9
(11) 30.6
3
9.5
16
10.0
(1)
7.7
7
9.8
2
7.8
16
7.0
6 207.3
17
7.4
14
9.1
12
4.7
16
8.7

14.5
7.5
9.5
20.8
9.1
10.1
11.0
9.7
7.7
11.5
38.8
7.5
7.0
5.4
7.3

12.8
7.8
8.3
10.7
8.9
9.6
9.0
8.5
6.5
7.6
8.6
5.9
4.9
4.6
5.2

39.4
11.0
21.9
11.3
24.4
18.0
19.3
9.2
11.0
13.7
0.2
16.1
5.9
20.7
25.3

35.2
8.5
19.5
10.0
20.3
15.7
20.4
8.7
10.1
7.5
1.0
14.0
12.6
15.8
19.6

32.7 10.9
7.5 6.1
18.9 8.0
10.2 5.4
17.4 7.6
14.6 4.6
18.8 5.1
9.4 8.0
10.8 5.3
10.5 7.0
4.7 6.8
15.7 4.8
15.7 8.1
15.8 4.1
23.2 7.0

9.8
7.0
12.2
6.4
7.5
4.1
7.9
7.6
5.1
6.2
9.2
4.5
5.5
4.2
5.4

7.6
6.6
12.3
5.9
6.5
3.5
6.7
6.7
4.6
5.3
6.7
3.2
4.0
3.3
4.3

5.7
1.0
2.0
1.0
2.1
1.7
2.2
0.9
0.8
1.5
0.4
1.1
0.9
1.0
1.6

4.6
0.9
1.7
0.9
1.7
1.5
2.1
0.8
0.7
1.4
0.4
1.0
0.8
0.8
1.3

3.8
0.8
1.5
0.9
1.4
1.3
2.1
0.8
0.7
1.2
0.4
0.9
0.7
0.7
1.1

26

Oil
& Gas
- Top Picks
India
Research

DOLAT CAPITAL

Petronet LNG (CMP: ` 150, TP: ` 180, Buy)

August 27, 2012

Gas share in energy basket on a rise and expected to increase to 11% by 2012
from levels of 10% in 2010. Petronet LNG (PLL) is expected to play a key role in
this evolution. We believe that capacity addition to the extent of 80 % will drive
the growth for next 3 years.

Over and above this, PLL is planning to expand the capacity of Dahej terminal
by 50% taking the name plate capacity to 15 MMTPA.

PLL does not carry the risk of rupee depreciation and neither the gas price as
both the re-gasification margin and the off-take of re-gasified gas is fixed for the
confirmed off-take volumes.

Supply crunch in domestic gas market due to decline in KG D6 gas volumes as

well as lack of new supply from domestic sources is driving the demand for spot
RLNG volumes. The operational efficiency (expected to be 10% over name plate
capacity) would enable PLL to exploit the gas market dynamics by bringing in
spot cargoes.

Global LNG scenario could get more favorable for PLL as prices are expected to
soften going forward. This would also entail in demand propulsion for spot RLNG

At CMP of ` 150, the stock trades at 10.1x FY13E and 9.3x FY14E earnings.
We recommend Buy with a DCF-based target price of ` 180.

27

DOLAT CAPITAL

Annual
Estimates
India Research
` mn)
Net Sales (`
FY12
FY13E
FY14E

Companies
Indraprastha Gas
Gujarat Gas
GSPL
Castrol India
Petronet LNG

Companies
Indraprastha Gas
Gujarat Gas
GSPL
Castrol India
Petronet LNG

August 27, 2012

25,150 31,891 39,150

23,819 28,540 31,250
11,233 11,490 12,110
29,932 32,760 33,852
226,959 284,750 349,600

Mcap
(`
` bn)

CMP
`)
(`

36
39
46
148
113

259
302
80
599
150

` mn)
EBIDTA (`
FY12
FY13E FY14E
6,361
3,952
10,298
6,698
18,292

7,598
4,430
10,420
7,396
21,800

8,220
4,720
10,880
7,832
25,100

` mn)
PAT (`
FY12 FY13E FY14E
3,071
2,739
5,221
4,810
10,575

3,590
3,100
5,310
5,420
11,120

4,110
3,350
5,480
5,857
12,080

`)
EPS (`
FY12 FY13E FY14E
21.9
21.4
9.3
19.5
14.1

25.6
24.2
9.4
21.9
14.8

29.4
26.1
9.7
23.7
16.1

TP Upside
P/E (x)
ROE (%)
EV/EBITDA(x)
Mcap/Sales (x)
` ) (%) FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E
(`
375
360
81
521
180

45
19
1
(13)
20

11.8
14.1
8.6
30.8
10.6

10.1
12.5
8.5
27.3
10.1

8.8
11.6
8.2
25.3
9.3

27.9
29.4
21.2
73.5
28.7

27.6
28.8
18.4
77.4
27.2

28.1 9.4
27.9 13.2
18.1 5.4
76.1 17.9
24.8 9.1

8.6
12.3
5.2
16.2
7.9

7.4
11.1
5.1
15.3
7.1

1.3
1.7
3.5
4.5
0.5

1.1
1.4
3.4
4.1
0.4

0.9
1.3
3.2
4.0
0.3

28

Pharma
- Top Picks
India Research

DOLAT CAPITAL

LUPIN (CMP: ` 579, TP: ` 621, Accumulate)

z

We like Lupin for its integrated global generic play and emphasis on niche
filings. We anticipate 20+ product launches in US in FY13E which shall include
10 OC's.

Limited competition in generic launches (gYaz, gYasmin and gTricor) shall drive
growth in US generics. We expect the US segment to contribute USD 670mn to
consolidated revenues by FY14E. Our concerns remain however on the timing
of these product launches, although we are more optimistic versus the market.

The recently acquired Irom Pharma (Japan) adds specialty injectable product
line to its existing portfolio of oral formulations and allows further penetration in
DPC hospitals. We expect increased contribution from Japan (14% of sales in
FY14E; 27% CAGR over FY12-14E).

The chronic-led domestic formulations portfolio is expected to grow at 18% over

FY12-14E. The marketing agreement with Eli-lilly for anti-diabetic products
complements its existing product offerings and is expected to aid growth
momentum.

We anticipate 26% earnings growth over FY12-14E and return ratios of over
25%.

At CMP, the stock trades at 22.7x FY13E and 18.6x FY14E earnings.
Recommend Accumulate, with target price of ` 621 (20x FY14E EPS).

Divis (CMP: ` 1182, TP: ` 1280, Accumulate)

August 27, 2012

DLL has marked its presence in the custom synthesis business (CS) through
effective demonstration of its inherent chemistry skill sets. This has consequently
translated into strong relationships with major pharma MNCs.

We expect the CS & API division to grow by 22% CAGR over FY12-14E aided
by ramp up in new Vizag SEZ operations (FDA approval anticipated in H2FY13E)
and increased order inflows.

The company has created an extensive portfolio of carotenoids like Astaxanthin,

Canathaxanthin, and Apocarotenal. We expect the segment sales to reach `
2.5bn in FY14E and contribute 9% of the total sales aided by gradual volume
off-take.

We expect 24% revenue growth over FY12-14E; while debt-free balance sheet
and controlled capex enables Divis to generate healthy cash flows.

At CMP, the stock trades at 22.7x FY13E and 18.5x FY14E earnings.
Recommend Accumulate, with a target price of ` 1280 (20x FY14E EPS).

29

Top
Picks
India
Research

DOLAT CAPITAL

IPCA Labs (CMP: ` 393, TP: ` 468, Accumulate)

August 27, 2012

Aggressive dossier filings (backed by own APIs), ramp-up in Indore SEZ facility
(revenue potential of ` 5bn at full capacity utilization) and increasing penetration
in EU markets shall result in 21% growth over FY12-14E in the export formulation
segment.

Contribution from recently approved Artesunate+Amodiaquine shall further

accelerate revenue growth in the institutional (tender based) sales. The market
size for the product is ` 1.5-2bn and no significant competition is envisaged for
next two years.

IPCA has successfully increased its focus on fast growing chronic segments
and reduced its dependency on anti-malarials (yet maintains its leadership in
the segment). We anticipate domestic formulation segment to clock in 15%
CAGR over FY12-14E aided by gradual uptick in field force productivity and new
product launches in the faster growing chronic segment.

We project 18% adjusted earnings growth over FY12-14E and return ratios of
over 25%.

At CMP, stock trades at 12.5x FY13E and 10.9x FY14E earnings. Recommend
Accumulate, with target price of ` 468 (13x FY14E EPS).

30

DOLAT CAPITAL

Annual Estimates

India Research
` mn)
Net Sales (`
FY12
FY13E
FY14E

Companies
Biocon
Cadila Healthcare
Divis Labs
Dr. Reddys Labs
GSK Pharma*
IPCA Labs
Lupin
Strides Arcolab*
Torrent Pharma

20,865
52,633
18,640
97,502
23,759
23,587
70,829
25,505
26,959

23,868
63,377
23,372
114,757
26,488
27,969
88,452
22,631
31,240

27,553
73,532
28,809
126,688
29,906
32,441
99,729
27,224
36,501

` mn)
EBIDTA (`
FY12
FY13E FY14E
5,173
10,839
6,904
24,506
7,824
5,135
14,447
4,911
5,006

5,681
13,816
9,106
26,509
8,536
6,526
18,717
5,658
6,248

` mn)
`)
PAT (`
EPS (`
FY12 FY13E FY14E FY12 FY13E FY14E

6,613
3,384
16,177
7,306
10,938
5,333
27,871 14,614
9,871
6,314
7,452
3,298
21,940
8,677
6,534
1,750
7,300
3,327

3,498
4,006 16.9
8,180
9,831 35.7
6,906
8,498 40.2
16,109 16,377 86.2
6,988
7,919 74.5
3,984
4,557 26.1
11,403 13,872 19.4
2,585
3,170 29.8
3,932
4,632 39.3

17.5
40.0
52.0
95.0
82.5
31.5
25.5
44.0
46.5

20.0
48.0
64.0
96.6
93.5
36.0
31.0
54.0
54.7

* Dec year end

Companies

Mcap
(`
` bn)

CMP
`)
(`

TP Upside
P/E (x)
ROE (%)
EV/EBITDA(x)
Mcap/Sales (x)
` ) (%) FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E
(`

Biocon
50
251 260
Cadila Healthcare 179
874 960
Divis Labs
157 1,182 1,280
Dr. Reddys Labs 284 1,672 1,931
GSK Pharma*
178 2,105 2,150
IPCA Labs
50
393 468
Lupin
258
579 621
Strides Arcolab*
50
860 756
Torrent Pharma
57
677 712

4
10
8
16
2
19
7
(12)
5

14.8
24.5
29.4
19.4
28.2
15.0
29.8
28.9
17.2

14.3
21.9
22.7
17.6
25.5
12.5
22.7
19.5
14.6

12.5
18.2
18.5
17.3
22.5
10.9
18.6
15.9
12.4

15.7
27.5
27.1
28.3
32.8
28.6
23.8
16.9
30.0

14.7
28.5
29.2
25.0
34.5
28.1
25.4
17.9
29.8

15.3
28.0
29.4
21.0
35.1
25.6
25.0
19.0
29.0

9.2
18.2
22.8
12.6
20.3
10.8
18.7
15.0
11.3

8.9
14.3
17.2
11.0
18.6
8.6
14.4
11.2
9.0

7.7
12.1
14.2
10.0
15.8
7.5
12.0
9.5
7.5

2.4
3.4
8.4
2.9
7.5
2.1
3.6
2.0
2.1

2.1
2.8
6.7
2.5
6.7
1.8
2.9
2.2
1.8

1.8
2.4
5.4
2.2
6.0
1.5
2.6
1.9
1.6

* December year ending

August 27, 2012

31

Int
en
tio
na
lly
Le
ft B
lan
k

India Research

DOLAT CAPITAL

August 27, 2012

32

Plastics / Tiles - Top Picks

India Research

DOLAT CAPITAL

Supreme Industries (CMP: ` 275, TP: ` 313, Accumulate)

We expect volume growth to remain strong over the next two years, exhibiting a
CAGR of 15% for FY12-FY14E. SIL will be incurring a capex of ` 10 billion from
FY12-FY16E buoyed by strong demand across its product portfolio. The capex
would be funded through internal accruals and monetization of its commercial
property Supreme Chambers
Impressive track record of rewarding shareholders High and consistent dividend
payout (37% in FY12) over the last several years, one bonus and stock split in
last five years & no dilution in last 15 years implying the growth of 18.5% was
entirely internally funded (buy back in FY09), speaks of the management
capability
We value SILs core business at ` 301 per share based on 13x FY14E earnings
of ` 23.1. Further, SILs 30% stake in SPL is valued at ` 12. Thus the SoTP
valuation for SIL comes to ` 313. We have an Accumulate rating with TP of `
313.

Astral Poly Technik (APTL) (CMP: ` 268, TP: ` 291, Accumulate)

APTL product range is witnessing strong growth due to product characteristics,
which makes the product superior to competitive products. The current trend in
the construction & real estate segment would bolster the demand of APTL
products. APTL has license for 4 products from Lubrizol which puts APTL at a
competitive advantage.
APTL is aggressively expanding its dealer network to increase its presence
across the country. The brand enhancement program would improve the product
perception.
APTL started production of bendable composite pipes with technical support
from Lubrizol in May 2012. APTL expects to get approval for Blaze Master in the
current fiscal, a fire sprinkler product that is slated to be a game changer for
the company.
The strong demand for plumbing systems from the replacement as well as new
markets and increase in product offerings augurs well for APTL
Increased product range enables APTL to act as a one stop solution provider for
plumbing requirements.
Continuous capacity addition at low incremental cost would enable APTL to
cater the strong growth rate as well as improve the return ratios.
At CMP of ` 268, the stock trades at 12.1x FY13E and 9.4x FY14E earnings.
We recommend BUY with a price target of ` 291 to trade at 10x FY14E earnings.

August 27, 2012

33

Plastics
/ Tiles - Top Picks
India Research

DOLAT CAPITAL

Kajaria Ceramics (CMP: ` 177, TP: ` 224, Buy)

We are positive on the business prospects of Kajaria Ceramics due to its
leadership position in the ceramic tiles Industry backed by complete range of
products, superior design capability, high brand recall and a loyal and strong
dealer network. Our interactions with various manufacturers and intermediaries
confirm our belief in Kajaria.
The demand drivers of the tile Industry continue to be robust and we expect
industry CAGR of 15% over the next few years. Chinese imports are no longer
a threat except in small pockets, as anti dumping duty and other factors have
made them unattractive.
Kajaria has an overall market share of 8% and is currently the fastest growing
brand in the tiles industry (accredited with Superbrand status). We expect its
market share to increase on consistent basis with the company continuously
eating into share of organised as well as unorganised brands.
We expect the top line and bottom line to grow at a CAGR of 22% & 30%
respectively over the next couple of year while the ROE is expected to remain
strong at 31.6% (FY12 @ 31.5%). At CMP of ` 177, the stock trades at 12.2x
& 9.5x its FY13E & FY14E earnings of ` 14.5 & ` 18.7 respectively. We
recommend Buy with a target price of ` 224 (12x FY14E EPS).

August 27, 2012

34

DOLAT CAPITAL

Annual Estimates

India Research
Companies
FY12
Astral Poly Technik
Supreme Industries
Sintex Industries
Time Technoplast
Kajaria Ceramics

Companies
Astral Poly Technik
Supreme Industries
Sintex Industries
Time Technoplast
Kajaria Ceramics

August 27, 2012

` mn)
Net Sales (`
FY13E
FY14E

5,812
28,582
44,368
15,282
13,115

Mcap CMP
`)
(`
(`
` bn)
6
35
16
8
13

8,154
34,264
48,139
18,127
16,360

10,706
40,108
54,559
21,521
19,609

` mn)
EBIDTA (`
FY12 FY13E
FY14E
837
4,258
7,009
2,431
2,062

1,060
4,962
7,725
2,991
2,529

1,338
5,740
9,273
3,486
2,951

FY12
398
2,086
3,535
898
809

` mn)
PAT (`
FY13E FY14E
497
2,646
3,477
1,122
1,064

640
3,202
4,379
1,476
1,376

`)
EPS (`
FY12 FY13E FY14E
17.7
16.4
12.9
4.3
11.0

22.1
20.8
12.7
5.4
14.5

28.5
25.2
16.0
7.1
18.7

TP Upside
P/E (x)
ROE (%)
EV/EBITDA(x)
Mcap/Sales (x)
` ) (%) FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E
(`

268 291
275 313
58 63
39 49
177 224

9
14
8
27
27

15.2
16.7
5.2
9.1
16.1

12.1
13.2
4.6
7.3
12.2

9.4
10.9
3.6
5.5
9.5

24.0
33.5
14.0
11.7
31.5

23.9
33.1
12.4
13.3
32.0

24.5
31.1
13.8
15.8
31.8

6.5
9.0
5.4
4.5
7.6

5.7
7.9
5.0
3.5
6.2

4.5
6.8
3.7
3.0
5.0

0.9
1.2
0.4
0.5
1.0

0.6
1.0
0.3
0.5
0.8

0.5
0.9
0.3
0.4
0.7

35

Int
en
tio
na
lly
Le
ft B
lan
k

India Research

DOLAT CAPITAL

August 27, 2012

36

Companies

CMP
`)
(`

Target
`)
(`

Upside
(%)

FY12

5
13
26

93
511
135

105
649
130

13%
27%
-4%

5,293
8,791
12,749

385
501
19
342
450
775
59
59
6

1,928
1,730
40
1,184
774
243
22
2,195
63

2,320
1,536
44
977
861
292
27
2,249
77

20
(11)
10
(17)
11
20
23
2
22

49
63
116

97
285
136

105
328
158

352
47
218
225
1155
2042
26
123
33
96

3,670
135
123
661
522
264
162
192
3000
190

376
1,397
23
29
79
242
15
2,584
111
889

558
2,440
126
707
376
2,880
377
1,320
850
363

FY14E

FY12

` mn)
PAT (`
FY13E

FY14E

914
1,961
2,412

1,082
2,517
2,869

571
839
1,234

673
1,110
1,394

752
1,478
1,691

36,188
37,196
4,694
25,129
37,707
237,005
12,561
5,935
2,035

40,520
41,363
4,369
36,766
41,572
208,636
13,107
7,221
1,477

45,001
45,771
4,857
42,430
47,482
233,191
14,480
8,506
1,455

23,781
30,037
2,491
16,351
28,789
135,165
5,660
3,088
1,264

27,714
33,832
2,115
22,514
27,201
106,660
5,312
3,471
555

29,783
37,044
2,391
25,656
31,108
116,466
6,324
4,039
603

148,969
46,406
63,522

11,661
9,168
6,879

13,346
10,061
9,329

14,835
11,482
10,417

4,121
3,621
4,612

5,034
4,613
6,423

5,886
5,458
7,209

107,400
33,554
62,198
58,819
257,202
287,777
13,848
47,910
8,612
36,453

123,119
39,281
73,947
69,167
288,979
328,753
15,988
57,284
10,774
43,035

15,088
3,034
8,532
8,759
32,897
90,021
837
4,849
1,330
4,836

17,390
3,632
10,796
10,562
40,213
106,626
1,847
6,559
1,729
5,938

19,923
4,368
12,500
12,536
45,363
124,263
2,150
8,183
2,179
7,418

9,887
1,800
6,447
5,716
25,640
61,565
446
3,182
900
3,250

11,320
2,141
8,171
7,350
32,380
71,725
780
4,229
1,136
3,998

13,018
2,600
9,695
8,832
37,010
84,601
1,093
5,363
1,429
5,133

255,491
401,027
22,267
23,572
55,530
41,460
12,553
616,295
63,329
432,631

294,787
454,626
27,333
27,041
62,296
46,965
14,861
699,216
69,997
480,771

40,252
97,790
2,172
2,775
9,845
11,111
2,324
145,352
9,194
64,013

46,217
111,025
3,461
3,763
10,453
16,601
3,161
181,432
10,829
73,980

54,386
124,099
4,140
4,196
11,853
18,641
3,668
201,470
12,249
80,529

25,261
83,160
1,454
2,256
8,218
9,092
1,418
107,662
10,954
55,987

29,210
94,934
2,127
3,166
7,977
14,098
1,829
134,307
13,092
64,846

34,807
105,517
2,567
3,535
8,693
15,678
2,106
150,759
14,530
72,519

` mn)
Net Sales (`
FY13E

FY14E

FY12

6,096
11,301
14,910

7,070
14,097
17,341

795
1,479
2,126

235,790
195,290
71,262
355,871
318,535
1,656,545
128,420
57,160
41,234

261,315
216,033
72,155
426,324
355,479
1,765,232
142,287
66,487
42,225

290,746
239,012
78,470
496,199
406,905
2,006,304
156,883
77,430
45,548

8
15
16

121,533
36,860
51,110

134,759
40,723
57,104

3,824
150
128
660
520
263
UR
208
3,204
200

4
11
4
-2
-4
-4
8
7
5

96,322
29,477
52,922
48,662
221,205
251,488
9,126
40,083
6,834
31,266

630
2,765
160
700
357
3,360
472
1,465
1,026
385

13
13
27
-1
-5
17
25
11
20
6

210,312
337,340
15,000
19,139
50,980
31,467
10,003
488,938
54,897
371,971

` mn)
EBIDTA (`
FY13E

DOLAT CAPITAL

37

Agrochemicals
Dhanuka
PI Industries
Rallis
Auto
Hero Motocorp
Bajaj Auto
TVS Motors
Maruti Suzuki
M&M
Tata Motors
Ashok Leyland
Eicher Motors
Escorts Ltd
Auto Ancilary
Apollo Tyres
Bharat Forge
Exide Inds
Consumer
Asian Paints
Berger Paints India
Dabur
GCPL
Hindustan Unilever
ITC
Jyothy Laboratories
Marico
Page Industries
Pidilite Industries
IT
HCL Tech
Infosys
KPIT Cummins
Mindtree
Mphasis
OFSS
Persistent
TCS
Tech mahindra
Wipro

Mcap
` bn)
(`

India Research

August 27, 2012

Valuation Matrix

FY14E

FY12

ROE (%)
FY13E

FY14E

8.2
15.3
21.3

6.9
11.5
18.9

6.2
8.7
15.6

29.7
31.1
23.3

28.0
29.6
23.2

25.4
30.4
23.8

6.3
10.1
13.0

5.3
7.8
11.4

4.3
6.0
9.5

0.9
1.5
2.1

0.8
1.1
1.8

0.7
0.9
1.5

149
128
5
89
53
37
2
150
6

16.2
16.7
7.6
20.9
15.8
5.7
10.3
19.2
5.1

13.9
14.8
9.0
15.2
16.8
7.3
11.0
17.0
11.6

12.9
13.5
7.9
13.3
14.7
6.7
9.3
14.6
10.7

65.6
53.2
23.1
11.2
25.5
52.1
13.9
22.1
7.7

53.7
46.3
17.1
13.8
20.6
28.9
12.3
20.1
3.2

42.6
39.7
17.2
13.9
20.4
25.3
13.8
19.4
3.4

10.4
13.1
5.6
12.8
12.9
4.2
7.5
7.5
3.9

9.2
11.9
6.2
8.7
11.7
5.1
7.3
5.8
5.0

8.5
10.6
5.5
7.4
10.2
4.1
6.3
4.6
4.9

1.6
2.6
0.3
1.0
1.4
0.5
0.5
1.0
0.1

1.5
2.3
0.3
0.8
1.3
0.4
0.4
0.9
0.1

1.3
2.1
0.2
0.7
1.1
0.4
0.4
0.8
0.1

10
20
8

12
23
8

11.9
18.3
25.1

9.7
14.4
18.0

8.3
12.2
16.0

16.1
16.9
15.8

17.0
18.4
19.1

17.1
18.5
18.2

6.4
8.6
16.7

5.0
7.5
12.3

4.5
6.4
10.9

0.4
1.7
2.3

0.4
1.6
2.0

0.3
1.4
1.8

106
5
4
17
12
8
3
5
81
6

122
6
5
22
15
9
5
7
102
8

140
8
6
26
17
11
7
8
128
10

36.0
22.7
41.2
24.1
75.7
36.1
7.0
32.3
62.2
24.5

32.2
22.1
41.5
20.4
65.7
36.9
12.0
29.1
59.2
24.1

30.6
22.5
39.8
20.6
61.3
38.0
14.0
26.5
56.9
26.4

22.9
16.2
25.1
27.6
33.7
22.0
40.0
25.2
25.6
19.8

19.7
13.3
20.1
21.7
27.1
18.4
20.0
19.2
19.7
16.2

16.9
10.8
17.1
17.9
23.7
15.7
18.0
15.2
15.5
12.8

3.6
1.7
4.0
5.0
5.1
8.0
2.7
3.0
4.9
3.1

3.2
1.4
3.5
3.9
4.3
6.9
1.8
2.6
3.9
2.6

2.7
1.2
2.9
3.2
3.8
6.0
1.6
2.2
3.1
2.2

37
145
8
56
39
108
35
55
86
23

42
166
12
79
38
168
45
69
103
26

26.4
28.0
21.7
25.4
24.0
15.5
17.5
37.3
18.4
21.3

24.7
26.3
25.5
27.5
19.2
20.1
19.2
36.3
17.1
21.0

24.4
25.1
24.3
23.9
17.9
18.4
18.8
32.2
16.3
20.2

9.4
12.1
9.8
8.0
7.0
18.3
4.5
17.4
9.6
13.0

8.2
10.7
6.2
5.9
6.6
12.2
3.3
13.9
8.1
11.3

7.0
9.6
5.2
5.3
5.8
10.9
2.9
12.6
7.2
10.4

1.8
4.1
1.5
1.5
1.5
7.7
1.5
5.3
2.0
2.4

1.5
3.5
1.0
1.2
1.4
5.8
1.2
4.2
1.8
2.1

1.3
3.1
0.8
1.1
1.3
5.1
1.0
3.7
1.6
1.8

105
649
130

13%
27%
-4%

11
33
6

13
44
7

15
59
9

1,928
1,730
40
1,184
774
243
22
2,195
63

2,320
1,536
44
977
861
292
27
2,249
77

20
(11)
10
(17)
11
20
23
2
22

119
104
5
57
49
42
2
115
12

139
117
4
78
46
33
2
129
5

49
63
116

97
285
136

105
328
158

8
15
16

8
16
5

352
47
218
225
1,155
2,042
26
123
33
96

3,670
135
123
661
522
264
162
192
3,000
190

3,824
150
128
660
520
263
UR
208
3,204
200

4
11
4
-2
-4
-4
8
7
5

376
1,397
23
29
79
242
15
2,584
111
889

558
2,440
126
707
376
2,880
377
1,320
850
363

630
2,765
160
700
357
3,360
472
1,465
1,026
385

13
13
27
-1
-5
17
25
11
20
6

5
13
26

93
511
135

385
501
19
342
450
775
59
59
6

Mcap/Sales (x)
EV/EBITDA(x)
FY12 FY13E FY14E FY12 FY13E FY14E

P/E (x)
FY12 FY13E

FY12

CMP
`)
(`

50
184
14
88
41
187
52
77
114
29

34.5
26.0
33.2
39.4
45.1
33.2
58.9
37.1
37.2
29.7
15.3
16.8
15.9
12.5
9.6
26.6
10.6
24.0
10.1
15.9

30.1
21.8
26.2
30.6
35.7
28.5
33.8
29.2
29.5
24.9
13.2
14.7
10.9
8.9
9.9
17.2
8.3
19.2
8.5
13.8

26.1
18.0
22.1
25.5
31.2
24.1
24.0
23.0
23.4
19.4
11.1
13.2
9.0
8.0
9.1
15.4
7.2
17.1
7.6
12.3

DOLAT CAPITAL

Agrochemicals
Dhanuka
PI Industries
Rallis
Auto
Hero Motocorp
Bajaj Auto
TVS Motors
Maruti Suzuki
M&M
Tata Motors
Ashok Leyland
Eicher Motors
Escorts
Auto Ancilary
Apollo Tyres
Bharat Forge
Exide Inds
Consumer
Asian Paints
Berger Paints India
Dabur
GCPL
Hindustan Unilever
ITC
Jyothy Laboratories
Marico
Page Industries
Pidilite Industries
IT Services
HCL Tech
Infosys
KPIT Cummins
Mindtree
Mphasis
OFSS
Persistent
TCS
Tech mahindra
Wipro

`)
EPS (`
FY13E FY14E

TP Upside
`)
(%)
(`

Mcap
` bn)
(`

India Research

August 27, 2012

Companies

38

Companies
Metals
Coal India
Hindalco
Hindustan Zinc
Jsw Steel
Jindal Steel
MOIL
Sesa Goa
SAIL
Sterlite Industries
Tata Steel
Usha Martin
Maharashtra Seamless
Jindal Saw
Ratnamani Metals
Innoventive Industries
Pharmaceuticals
Biocon
Cadila Healthcare
Divis Labs
Dr. Reddys Labs
GSK Pharma*
IPCA Labs
Lupin
Strides Arcolab*
Torrent Pharma

39

Oil & Gas

Indraprastha Gas Ltd.
Gujarat Gas Company Ltd.
Gujarat State Petronet Ltd.
Castrol India Ltd.
Petronet LNG
* Dec year end.

CMP
`)
(`

Target
`)
(`

Upside
(%)

2,293
213
549
165
371
41
167
347
377
377
7
23
33
5
7

363
111
130
738
397
243
192
84
112
388
25
333
120
112
118

386
120
134
660
410
282
190
90
114
450
26
390
137
125
137

50
179
157
284
178
50
258
50
57

251
874
1,182
1,672
2,105
393
579
860
677

260
960
1,280
1,931
2,150
468
621
756
712

4
10
8
16
2
19
7
-12
5

268

291

35
16
8

275
58
39

36
39
46
148
113

259
302
80
599
150

FY12

` mn)
Net Sales (`
FY13E

` mn)
EBIDTA (`
FY13E

FY12

679,355
774,944
125,456
379,469
201,638
9,208
78,206
542,004
415,034
1,365,255
38,858
24,193
61,483
12,123
9,163

747,521
846,324
132,243
418,177
242,118
9,865
80,926
629,971
442,274
1,462,389
44,190
28,795
73,880
13,509
11,241

155,503
81,894
59,193
61,019
69,452
4,332
35,001
54,230
98,633
124,168
4,338
3,949
6,269
2,051
1,917

172,064
86,302
63,225
64,866
74,002
4,322
25,249
66,677
108,227
155,648
5,092
4,090
9,925
2,055
2,319

20,865
52,633
18,640
97,502
23,759
23,587
70,829
25,505
26,959

23,868
63,377
23,372
114,757
26,488
27,969
88,452
22,631
31,240

27,553
73,532
28,809
126,688
29,906
32,441
99,729
27,224
36,501

5,173
10,839
6,904
24,506
7,824
5,135
14,447
4,911
5,006

5,681
13,816
9,106
26,509
8,536
6,526
18,717
5,658
6,248

6,613
16,177
10,938
27,871
9,871
7,452
21,940
6,534
7,300

3,384
7,306
5,333
14,614
6,314
3,298
8,677
1,750
3,327

3,498
8,180
6,906
16,109
6,988
3,984
11,403
2,585
3,932

4,006
9,831
8,498
16,377
7,919
4,557
13,872
3,170
4,632

5,812

8,154

10,706

837

1,060

1,338

398

497

640

313
63
49

14
8
27

28,582
44,368
15,282

34,264
48,139
18,127

40,108
54,559
21,521

4,258
7,009
2,431

4,962
7,725
2,991

5,740
9,273
3,486

2,086
3,535
898

2,646
3,477
1,122

3,202
4,379
1,476

375
360
81
521
180

45
19
1
(13)
20

25,150
23,819
11,233
29,932
226,959

31,891
28,540
11,490
32,760
284,750

39,150
31,250
12,110
33,852
349,600

6,361
3,952
10,298
6,698
18,292

7,598
4,430
10,420
7,396
21,800

8,220
4,720
10,880
7,832
25,100

3,071
2,739
5,221
4,810
10,575

3,590
3,100
5,310
5,420
11,120

4,110
3,350
5,480
5,857
12,080

6
624,154
8
808,214
3
112,551
(11)
343,681
3
181,665
16
8,996
(1)
83,101
7
456,540
2
411,789
16 1,328,997
6
33,608
17
22,918
14
52,912
12
12,217
16
7,702

FY14E

FY12

` mn)
PAT (`
FY13E

FY14E

207,909 145,476
98,779
33,474
67,335
54,190
71,114
5,377
86,995
39,178
4,456
4,108
29,513
26,955
89,717
35,512
122,299
48,279
187,031
53,898
7,183
36
5,283
3,174
13,450
2,242
2,413
1,114
2,921
806

FY14E

158,650 179,590
28,375
27,265
57,702
65,835
7,916
15,414
40,618
41,707
4,068
4,256
33,971
37,509
35,767
40,556
49,051
57,597
32,863
49,288
193
872
3,126
4,005
4,744
6,804
977
1,135
969
1,366

DOLAT CAPITAL

Plastics / Tiles
Astral Poly Technik
Kajaria Ceramics
Supreme Industries
Sintex Industries
Time Technoplast

Mcap
` bn)
(`

India Research

August 27, 2012

Valuation Matrix

Mcap
(`
` bn)

Metals
Coal India
2,293
Hindalco
213
Hindustan Zinc
549
Jsw Steel
165
Jindal Steel
371
MOIL
41
Sesa Goa
167
SAIL
347
Sterlite Industries
377
Tata Steel
377
Usha Martin
7
Maharashtra Seamless 23
Jindal Saw
33
Ratnamani Metals
5
Innoventive Industries
7
Pharmaceuticals
Biocon
Cadila Healthcare
Divis Labs
Dr. Reddys Labs
GSK Pharma*
IPCA Labs
Lupin
Strides Arcolab*
Torrent Pharma

Oil & Gas

Indraprastha Gas
Gujarat Gas
GSPL
Castrol India
Petronet LNG
* Dec year end.

FY12

`)
EPS (`
FY13E FY14E

P/E (x)
FY12 FY13E

FY14E

FY12

ROE (%)
FY13E

FY14E

EV/EBITDA(x)
Mcap/Sales (x)
FY12 FY13E FY14E FY12 FY13E FY14E

363
111
130
738
397
243
192
84
112
388
25
333
120
112
118

386
120
134
660
410
282
190
90
114
450
26
390
137
125
137

6
8
3
(11)
3
16
(1)
7
2
16
6
17
14
12
16

23
17
13
24
42
24
25
9
14
55
0
45
13
24
14

25
15
14
35
43
24
17
9
15
34
1
44
17
21
16

28 15.8
14
6.3
16
9.9
69 30.6
45
9.5
25 10.0
21
7.7
10
9.8
17
7.8
51
7.0
3 207.3
57
7.4
25
9.1
24
4.7
23
8.7

14.5
7.5
9.5
20.8
9.1
10.1
11.0
9.7
7.7
11.5
38.8
7.5
7.0
5.4
7.3

12.8
7.8
8.3
10.7
8.9
9.6
9.0
8.5
6.5
7.6
8.6
5.9
4.9
4.6
5.2

39.4
11.0
21.9
11.3
24.4
18.0
19.3
9.2
11.0
13.7
0.2
16.1
5.9
20.7
25.3

35.2
8.5
19.5
10.0
20.3
15.7
20.4
8.7
10.1
7.5
1.0
14.0
12.6
15.8
19.6

32.7
7.5
18.9
10.2
17.4
14.6
18.8
9.4
10.8
10.5
4.7
15.7
15.7
15.8
23.2

10.9
6.1
8.0
5.4
7.6
4.6
5.1
8.0
5.3
7.0
6.8
4.8
8.1
4.1
7.0

9.8
7.0
12.2
6.4
7.5
4.1
7.9
7.6
5.1
6.2
9.2
4.5
5.5
4.2
5.4

7.6
6.6
12.3
5.9
6.5
3.5
6.7
6.7
4.6
5.3
6.7
3.2
4.0
3.3
4.3

3.7
0.3
4.9
0.5
2.0
4.5
2.0
0.8
0.9
0.3
0.2
1.0
0.6
0.4
0.9

3.4
0.3
4.4
0.4
1.8
4.4
2.1
0.6
0.9
0.3
0.2
1.0
0.5
0.4
0.8

3.1
0.3
4.2
0.4
1.5
4.1
2.1
0.6
0.9
0.3
0.2
0.8
0.4
0.4
0.6

50
179
157
284
178
50
258
50
57

251
874
1,182
1,672
2,105
393
579
860
677

260
960
1,280
1,931
2,150
468
621
756
712

4
10
8
16
2
19
7
-12
5

17
36
40
86
75
26
19
30
39

17
40
52
95
82
32
26
44
46

20
48
64
97
93
36
31
54
55

14.8
24.5
29.4
19.4
28.2
15.0
29.8
28.9
17.2

14.3
21.9
22.7
17.6
25.5
12.5
22.7
19.5
14.6

12.5
18.2
18.5
17.3
22.5
10.9
18.6
15.9
12.4

15.7
27.5
27.1
28.3
32.8
28.6
23.8
16.9
30.0

14.7
28.5
29.2
25.0
34.5
28.1
25.4
17.9
29.8

15.3
28.0
29.4
21.0
35.1
25.6
25.0
19.0
29.0

9.2
18.2
22.8
12.6
20.3
10.8
18.7
15.0
11.3

8.9
14.3
17.2
11.0
18.6
8.6
14.4
11.2
9.0

7.7
12.1
14.2
10.0
15.8
7.5
12.0
9.5
7.5

2.4
3.4
8.4
2.9
7.5
2.1
3.6
2.0
2.1

2.1
2.8
6.7
2.5
6.7
1.8
2.9
2.2
1.8

1.8
2.4
5.4
2.2
6.0
1.5
2.6
1.9
1.6

6
13
35
16
8

268
177
275
58
39

291
224
313
63
49

9
27
14
8
27

18
11.0
16.4
12.9
4.3

22
14.5
20.8
12.7
5.4

29
18.7
25.2
16.0
7.1

15.2
16.1
16.7
5.2
9.1

12.1
12.2
13.2
4.6
7.3

9.4
9.5
10.9
3.6
5.5

24.0
31.5
33.5
14.0
11.7

23.9
32.0
33.1
12.4
13.3

24.5
31.8
31.1
13.8
15.8

6.5
7.6
9.0
5.4
4.5

5.7
6.2
7.9
5.0
3.5

4.5
5.0
6.8
3.7
3.0

0.9
1.0
1.2
0.4
0.5

0.6
0.8
1.0
0.3
0.5

0.5
0.7
0.9
0.3
0.4

36
39
46
148
113

259
302
80
599
150

375
360
81
521
180

45
19
1
(13)
20

22
21
9
19
14

26
24
9
22
15

29
26
10
24
16

11.8
14.1
8.6
30.8
10.6

10.1
12.5
8.5
27.3
10.1

8.8
11.6
8.2
25.3
9.3

27.9
29.4
21.2
73.5
28.7

27.6
28.8
18.4
77.4
27.2

28.1
27.9
18.1
76.1
24.8

9.4
13.2
5.4
17.9
9.1

8.6
12.3
5.2
16.2
7.9

7.4
11.1
5.1
15.3
7.1

1.3
1.7
3.5
4.5
0.5

1.1
1.4
3.4
4.1
0.4

0.9
1.3
3.2
4.0
0.3

DOLAT CAPITAL

Plastics / Tiles
Astral Poly Technik
Kajaria Ceramics
Supreme Industries
Sintex Industries
Time Technoplast

CMP Target Upside

`)
`)
(`
(`
(%)

India Research

August 27, 2012

Companies

40

Financials
Andhra Bank
Axis Bank
BoI
Canara Bank
City Union Bank
HDBK
ICICI Bank
IOB
Karur Vysya Bank
OBC
PNB
State Bank of India
Syndicate Bank
Union Bank
Banks

Mcap
(`
` bn)

CMP
`)
(`

Target
`)
(`

Upside
(%)

FY12

NII
FY13E

FY14E

FY12

53
445
157
148
21
1399
1102
56
43
67
241
1271
57
88

95
1076
273
333
51
596
956
71
401
231
712
1895
95
159

145
1582
250
496
68
627
1323
83
512
325
912
1810
145
163

52
47
-9
49
33
5
38
17
28
41
28
-4
53
2

37,593
80,177
83,134
76,893
4,998
122,968
107,342
50,162
9,171
42,158
134,144
432,911
50,850
69,089

40,377
97,289
88,731
82,397
5,989
142,507
139,453
54,905
10,710
45,609
145,683
452,900
56,932
72,874

46,921
114,277
100,918
95,487
7,335
168,715
165,617
61,526
13,635
52,725
170,574
515,503
65,296
84,207

28,150
74,309
66,939
59,432
4,271
89,504
103,865
35,341
7,257
31,406
106,143
315,735
33,468
52,538

Mcap
` bn)
(`

CMP
`)
(`

Target
`)
(`

Upside
(%)

53
445
157
148
21
1399
1102
56
43
67
241
1271
57
88

95
1076
273
333
51
596
956
71
401
231
712
1895
95
159

145
1582
250
496
68
627
1323
83
512
325
912
1810
145
163

52
47
-9
49
33
5
38
17
28
41
28
-4
53
2

ROE (%)
FY12
FY13E

FY14E

Operating Income
FY13E
FY14E
29,052
90,240
69,861
62,099
4,901
108,558
137,045
37,081
7,896
33,052
108,582
340,073
37,312
50,697

ROA (%)
FY12
FY13E

33,155
105,330
78,581
71,002
5,718
128,634
157,828
40,360
10,098
38,033
124,425
387,988
41,512
57,079

FY12

` mn)
PAT (`
FY13E

13,447
42,422
26,775
32,827
2,803
51,671
64,653
10,502
5,017
11,416
48,842
117,073
13,134
17,871

FY14E

FY12

`)
EPS (`)
FY13E FY14E

12,933 14,703
50,797 58,961
21,113 20,993
32,833 36,232
3,161
3,751
67,137 84,145
81,838 92,111
9,618 10,537
5,324
6,640
11,495 15,440
46,585 58,184
126,121 155,791
16,377 17,257
15,557 17,766

24.0
102.9
46.6
74.1
6.9
22.0
56.1
13.2
46.8
39.1
144.0
184.3
22.9
32.5

23.1 26.3
122.6 143.5
36.7 36.5
74.1 81.8
7.1
8.4
28.6 35.9
71.0 79.9
12.1 13.2
49.7 61.9
39.4 52.9
137.3 171.5
187.9 232.2
27.2 28.7
28.3 32.3

FY14E

FY12

P/E (x)
FY13E

0.9
1.6
0.4
0.8
1.5
1.9
1.5
0.4
1.2
0.7
1.0
0.9
0.8
0.5

4.0
10.5
5.9
4.5
7.4
27.1
17.0
5.4
8.6
5.9
4.9
10.3
4.1
4.9

4.1
8.8
7.4
4.5
7.2
20.8
13.5
5.9
8.1
5.9
5.2
10.1
3.5
5.6

FY14E
3.6
7.5
7.5
4.1
6.1
16.6
12.0
5.4
6.5
4.4
4.2
8.2
3.3
4.9

India Research

August 27, 2012

Banks

P/ABV(x)
FY12 FY13E FY14E

Financials
19.2
20.3
15.6
17.0
24.9
18.7
11.2
11.1
20.8
10.7
21.1
15.7
17.9
13.2

16.3
20.4
10.6
14.9
21.5
20.6
13.0
8.6
18.4
10.0
16.5
14.2
18.1
10.3

16.4
20.1
9.4
14.6
20.2
21.9
13.4
8.9
20.2
12.2
17.8
15.6
16.1
10.9

1.1
1.6
0.7
0.9
1.7
1.7
1.5
0.5
1.5
0.7
1.2
0.9
0.8
0.7

1.0
1.6
0.5
0.8
1.5
1.8
1.6
0.4
1.3
0.6
0.9
0.9
0.8
0.6

0.8
2.0
1.0
0.9
1.7
4.7
2.0
0.6
1.6
0.7
1.0
1.7
0.8
0.8

0.7
1.7
0.9
0.8
1.4
4.0
1.8
0.6
1.4
0.7
0.9
1.7
0.6
0.8

0.6
1.4
0.8
0.7
1.2
3.4
1.7
0.6
1.3
0.6
0.8
1.4
0.6
0.7

DOLAT CAPITAL

Andhra Bank
Axis Bank
BoI
Canara Bank
City Union Bank
HDBK
ICICI Bank
IOB
Karur Vysya Bank
OBC
PNB
State Bank of India
Syndicate Bank
Union Bank

41

DOLAT CAPITAL
BUY

Upside above 20%

ACCUMULATE

Upside above 5% and up to 20%

REDUCE

Upside of upto 5% or downside of upto 15%

SELL

Downside of more than 15%

Analyst

Sector/Industry/Coverage

E-mail

Amit Khurana, CFA

Amit Purohit
Bhavin Shah
Mayur Milak
Priyank Chandra
Rahul Jain
Rakesh Kumar
Ram Modi
Nehal Shah
Prachi Save

Director - Research
Consumer
Pharma & Agro Chem
Auto & Auto Ancillary
Oil & Gas
IT Services
Financials
Metals & Mining
Midcaps
Derivative Analyst

amit@dolatcapital.com
amitp@dolatcapital.com
bhavin@dolatcapital.com
mayurm@dolatcapital.com
priyank@dolatcapital.com
rahul@dolatcapital.com
rakesh@dolatcapital.com
ram@dolatcapital.com
nehals@dolatcapital.com
prachi@dolatcapital.com

Associates

Sector/Industry/Coverage

E-mail

Dhaval S. Shah
Hardick Bora
Hetal Shah
Mahvash Ariyanfar
Pranav Joshi

Engineering & Capital Goods

Pharma & Agro Chem
Financials
Economy & Midcaps
Financials

dhaval@dolatcapital.com
hardickb@dolatcapital.com
hetals@dolatcapital.com
mahvash@dolatcapital.com
pranavj@dolatcapital.com

Equity Sales/Dealing

Designation

E-mail

Purvag Shah
Janakiram Karra
Vikram Babulkar
Kapil Yadav
Parthiv Dalal
P. Sridhar
Mihir Thaker
Aadil R. Sethna
Chirag Makati

Principal
Director - Institutional Sales
Director - Institutional Sales
AVP - Institutional Sales
AVP - Institutional Sales
Head Dealing - Equities
Senior Sales Trader
Head of Derivatives
Asst. Vice President - Derivatives

purvag@dolatcapital.com
janakiram@dolatcapital.com
vikram@dolatcapital.com
kapil@dolatcapital.com
parthiv@dolatcapital.com
sridhar@dolatcapital.com
mihir@dolatcapital.com
aadil@dolatcapital.com
chiragm@dolatcapital.com

Tel.+91-2-4096 9700
91-22-40969745
91-22-40969724
91-22-40969731
91-22-40969749
91-22-40969737
91-22-40969754
91-22-40969750
91-22-40969756
91-22-40969753
91-22-40969733
Tel.+91-22-4096 9700
91-22-40969726
91-22-40969748
91-22-40969725
91-22-40969736
91-22-40969706
Tel.+91-22-4096 9797
91-22-40969747
91-22-40969712
91-22-40969746
91-22-40969735
91-22-40969705
91-22-40969728
91-22-40969727
91-22-40969708
91-22-40969703

Dolat Capital Market Pvt. Ltd.

20, Rajabahadur Mansion, 1st Floor, Ambalal Doshi Marg, Fort, Mumbai - 400 001
This report contains a compilation of publicly available information, internally developed data and other sources believed to be reliable. While
all reasonable care has been taken to ensure that the facts stated are accurate and the opinion given are fair and reasonable, we do not take
any responsibility for inaccuracy or omission of any information and will not be liable for any loss or damage of any kind suffered by use of
or reliance placed upon this information. For Pvt. Circulation & Research Purpose only.

Our Research reports are also available on Reuters, Thomson Publishers and Bloomberg (DCML <GO>)