India Morning Bell 8th December 2014

Country
India I Equities
Daily
8 December 2014
India Morning Bell
Sensex: 28458
All the latest research and data
Nifty: 8538
Infosys Entering a critical execution phase; Hold. One of the

first problems identified by Infosys new management is industry-wide
downward pressure on pricing. This can now only be offset by hiring
fresh graduates in large numbers. This state is undesirable according to
the management and, therefore, the focus is on utilising advanced
technologies (cloud, open source, AI, M2M) to turn more productive.
We largely retain our estimates after the analyst meet as we await
changes being reflected in financials (only change being FY17 margins
on management outlook). However, the recent run-up in the stock
means a recommendation downgrade from a Buy to a Hold. At our TP,
it would trade at 18x FY17 PE.
Indag Rubber Tyre-retreading specialist. The second-largest
operator in the organised cold-retreading arena, with a market share of
20-25%, Indag Rubber was incorporated in 1978 in a joint venture with
the US-based Bandag. Indag is a niche operator in the replacement
segment as an alternative to direct tyre demand. With recovery in CV
demand expected to gather momentum ahead, demand for retreading
would also expand. Indags FY14 EBITDA margin came at ~16%,
comparing favourably with most tyre manufacturers; it has healthy
return ratios and good cash-flow generation.
14
13
12
(Inflation,%)
Markets
Sensex
Nifty
Dow Jones
S & P 500
FTSE
Nikkei*
Hang Seng*
11
10
9
8
5 Dec 14
1 Day
YTD
28458
8538
17959
2075
6743
17906
24027
-0.4%
-0.3%
0.3%
0.2%
1.0%
-0.2%
0.2%
34.4%
35.4%
8.3%
12.3%
-0.1%
9.9%
3.1%
5 Dec 14
1 Day
Avg '14
586
2,776
20,816
-9.7%
-6.3%
-6.9%
527
2,645
32,055
5 Dec 14*
MTD
YTD
659
677
-18
1,411
1,244
254
1,37,382
1,22,447
16,533
2,132
2,086
46
33,935
33,585
350
8,29,979
8,18,733
10,554
249
222
27
693
498
195
28,372
25,807
2,330
Volumes (US$m)
Cash BSE
Cash NSE
Derivatives (NSE)
Flows (US$m)
FII Cash
Buy
Sell
Net
FII - Derivatives
Buy
Sell
Net
DII Cash
Buy
Sell
Net
India: Food & fuel drive down non-core inflation
Others
7
6
Non-core
Source: GoI, Anand Rathi Research
Core
Oct-14
Aug-14
Jun-14
Apr-14
Feb-14
Dec-13
Oct-13
Aug-13
Jun-13
Apr-13
Feb-13
Dec-12
Oct-12
Chart of the day
Oil Brent (US$/bbl)*

Gold (US$/oz)*
Steel (US$/MT)
`/US$
US$/Euro*
Yen/US$*
Call Rate
10-year G-Secs
EMBI spreads
5 Dec 14
1 Day
YTD
68.2
1,193.6
557.5
61.8
1.2
121.4
8.3%
7.9%
353.43
-1.3%
0.1%
-2.6%
0.0%
-0.1%
0.0%
22.bps
-3.bps
1.2bps
-35.6%
-1.0%
-4.7%
0.0%
11.7%
-13.3%
-50.bps
-88.7bps
19.2bps
@7:30am *Provisional Source: BSE, Bloomberg
Anand Rathi Shares and Stock Brokers Limited (hereinafter ARSSBL) is a full service brokerage and equities research firm and the views expressed therein are solely
of ARSSBL and not of the companies which have been covered in the Research Report. This report is intended for the sole use of the Recipient and is to be circulated
only within India and to no countries outside India. Disclosures and analyst certifications are present in Appendix.
Anand Rathi Research
India Equities
8 December 2014
India Morning Bell
Market Data
Large Caps
Mid Caps
Small Caps
(>US$1bn)
(US$250m-1bn)
(US$100m-250m)
Price Performance
Price Performance
Top-5 gainers
Company
Top-5 gainers
Company
CMP (INR)
1 wk (%)
1 Mth (%)
BERGER PAINTS
424
19.5
6.6
WOCKHARDT LTD
936
15.6
23.5
EXIDE INDUS LTD
Price Performance
CMP (INR)
1 wk (%)
1 Mth (%)
Top-5 gainers
Company
CMP (INR)
1 wk (%)
JET AIRWAYS IND
378
54.4
62.7
SPICEJET LTD
21
39.6
50.0
GULF OIL LUBRICA
505
34.1
52.7
TAKE SOLUTIONS
56
39.1
37.1
19.0
1 Mth (%)
174
14.7
10.7
STRIDES ARCOLAB
911
23.8
36.7
SEQUENT SCIENTIF
536
27.5
PUNJAB NATL BANK
1096
13.6
17.7
BAJAJ CORP LTD
353
16.0
24.2
ATUL AUTO LTD
556
26.6
38.7
ORIENTAL BANK OF
310
13.4
8.6
ZYDUS WELLNESS
801
14.8
27.7
ONMOBILE GLOBAL
70
26.0
78.0
CMP (INR)
1 wk (%)
1 Mth (%)
CMP (INR)
1 wk (%)
1 Mth (%)
681
(14.9)
(15.7)
SUZLON ENERGY
13
(9.6)
(2.2)
1325
(8.6)
(2.0)
ABAN OFFSHORE
543
(8.4)
(13.0)
18
(8.5)
(15.0)
KAVERI SEED
844
(7.5)
(8.5)
OIL & NATURAL GA
361
(6.7)
(11.0)
JK CEMENTS LTD
606
(6.7)
0.3
NATIONAL ALUMIN
58
(6.6)
1.0
85
(5.7)
(25.5)
CMP (INR)
1 wk avg
1/4 wk (%)
CMP (INR)
1 wk avg
1/4 wk (%)
GUJARAT GAS CO
594
12,80,553
191.4
MOTILAL OSWAL
259
2,71,523
171.4
ICVL CHEMICALS L
OBEROI REALTY
258
11,15,807
171.7
GULF OIL LUBRICA
505
5,47,895
150.6
TAKE SOLUTIONS
CROMPTON GREAVES
189
246,60,992
157.0
STRIDES ARCOLAB
911
11,77,743
141.8
424
14,71,113
135.9
JET AIRWAYS IND
378
80,13,150
34,281
26,418
81.6
SUN PHARMA ADV
200
13,01,477
Top-5 losers
Company
VEDANTA RESOURCE
CONTAINER CORP
GMR INFRASTRUCTU
Volume
Volume spurts
Company
Top-5 losers
Company
FUTURE RETAIL LT
BERGER PAINTS
MRF LTD
Technicals
Technicals
Above 200 DMA

Company
Above 200 DMA

Company
CMP (INR)
200D Avg
(%)
1 wk (%)
1 Mth (%)
12
(22.3)
(56.4)
NITIN FIRE PROT
33
(11.8)
(30.2)
RS SOFTWARE INDI
542
(10.4)
(15.9)
GUJARAT NATURAL
182
(8.7)
(10.9)
15
(8.4)
0.7
CMP (INR)
1 wk avg
1/4 wk (%)
195
1,518
282.9
56
22,38,107
266.4
TRIBHOVANDAS BHI
169
5,91,423
173.4
133.7
GOODYEAR INDIA
659
1,29,274
134.1
124.1
ATUL AUTO LTD
556
10,10,260
127.5
800
429
85.3
641
2,403
359
1,465
14,359
55
GAMMON INFRASTRU
Volume
Volume spurts
Company
Technicals
Above 200 DMA
Company
CMP (INR)
200D Avg
(%)
CMP (INR)
200D Avg
(%)
BOMBAY BURMAH TR
457
182
151.2
ICVL CHEMICALS L
195
53
263.3
78.8
64.4
CENTURY PLYBOARD
JK TYRE & IND LT
163
639
80
319
104.3
99.5
EXDON TRADING CO
VISAGAR POLYTEX
308
805
85
234
259.4
253.3
8,901
61.1
GATI LTD
34
60.8
KITEX GARMENTS
CMP (INR)
200D Avg
(%)
142
250
(42.7)
NATIONAL BUILDIN
WHIRLPOOL OF IND
AJANTA PHARMA
EICHER MOTORS
ASHOK LEYLAND
Below 200 DMA
Company
CMP (INR)
KAILASH AUTO FIN
Volume
Volume spurts
Company
Top-5 losers
Company
JINDAL STEEL & P

JAIPRAKASH ASSOC
269
138
95.7
KAMALAKSHI FINAN
439
126
245.7
523.7
285.6
82.3
SAFAL HERBS LTD
71
25
171.0
CMP (INR)
200D Avg
(%)
CMP (INR)
200D Avg
(%)
SUZLON ENERGY
13
19
(27.7)
KAILASH AUTO FIN
12
33
(63.4)
Below 200 DMA

Company
Below 200 DMA

Company
30
52
(42.2)
PIPAVAV DEFENCE
35
47
(25.1)
SKIL INFRASTRUCT
29
54
(47.6)
VEDANTA RESOURCE
681
972
(30.0)
FUTURE RETAIL LT
85
113
(24.5)
KAPPAC PHARMA
262
421
(38.2)
GMR INFRASTRUCTU
18
26
(27.3)
JAYPEE INFRATECH
21
27
(22.6)
ESS DEE ALUMINIU
352
539
(34.6)
260
326
(20.2)
JAIPRAKASH POWER
13
17
(21.2)
FINANCIAL TECHNO
188
270
(30.5)
CAIRN INDIA
Source: Bloomberg
India Equities
Technology
India I Equities
Company Update
Change in Estimates Target Reco
8 December 2014
Infosys
Rating: Hold
Target Price: `2,300
Share Price: `2,070
Entering a critical execution phase; Hold

Analyst meet takeaways
Betting on advanced tech to escape perpetual pricing pressure. One of the first
problems identified by Infosys new management is industry-wide downward
pressure on pricing. This can now only be offset by hiring fresh graduates in large
numbers. This state is undesirable according to the management and, therefore, the
focus is on utilising advanced technologies (cloud, open source, AI, M2M) to turn
more productive. Also, employees need to be more proactive (a cultural matter)
regarding their clients problems. These two factors should help the company
increase pricing of its services as it climbs the value chain.
Focus on design thinking and holistic solutions. Infosys believes that the
focus on design thinking, clubbed with product engineering, can help it deliver
large integrated solutions. At present, these components exist, but in scattered
form, adding little value to a client due to multiple interfaces. The management
believes that such holistic solutions can integrate product engineering and IT
solutions, together creating value for clients.
Upskilling employees using training infrastructure. Adding new technologies
(AI, SMAC and automation) to existing service lines and products (Finacle), Infosys
is leveraging its extensive training infrastructure to upskill its large employee base.
This strategy is expected to prove less disruptive as no widespread segregation is
expected in the workforce of new and old tech employees. To support these
measures, the company has increased its workforce in key growth areas and
revamped its sales team (with revised incentive plans).
Key data
INFO IN / INFY.BO
52-week high / low

Sensex / Nifty
3-m average volume
Market cap
Shares outstanding
`2,200/ `1,447
28458 / 8538
US$85.2m
`2376bn / US$38.41bn
574m
Shareholding pattern (%)
Sep 14 Jun 14 Mar 14
Promoters
- of which, Pledged
Free Float
- Foreign Institutions
- Domestic Institutions
- Public
15.92 15.94
84.08. 84.06.
42.67 41.58
14.48 14.08
26.93
28.4
Estimates revision (%)
Sales (US$)
EBITDA
Net profit
15.94
84.06
42.1
13.66
28.3
FY16e
FY17e
1.8
1.7
Relative price performance
Margin outlook intact, but finer details in April. Infosys has maintained its
outlook regarding stable margins (25% +/-100bps) in the medium term despite
investment
in sales, products and delivery. This would essentially be driven by
`
efficiency improvements being ploughed back into investments.
Our take. We largely retain our estimates after the analyst meet as we await
changes being reflected in financials (only change being FY17 margins on
management outlook). However, the recent run-up in the stock means a
recommendation downgrade from a Buy to a Hold. At our TP, it would trade at
18x FY17 PE. Risks. Organization-wide changes may lead to volatility.
Quarterly results (YE: Mar)
Sales (US$m)
Sales (`m)
FY13
FY14
FY15e
FY16e
FY17e
7,398
8,249
8,881
9,956
11,229
403,520
501,330
533,474
596,394
672,640
94,210
106,480
124,013
134,429
146,582
EPS (`)
165
186
108
117
128
Growth (%)
13%
13%
-42%
8%
9%
PE (x)
25.2
22.3
19.2
17.7
16.2
PBV (x)
6.0
5.0
4.4
4.0
3.7
Net profit (`m)
RoE (%)
26%
24%
24%
24%
24%
RoCE (%) after tax
20%
19%
19%
19%
19%
Dividend yield (%)
2%
3%
2%
3%
3%
Source: Bloomberg
Source: Company
Anand Rathi Shares and Stock Brokers Limited (hereinafter ARSSBL) is a full service brokerage and equities research firm and the views expressed therein are solely of
ARSSBL and not of the companies which have been covered in the Research Report. This report is intended for the sole use of the Recipient and is to be circulated only within
India and to no countries outside India. Disclosures and analyst certifications are present in Appendix.
India Equities
8 December 2014
Infosys Entering a critical execution phase; Hold
Quick Glance Financials and Valuations

Fig 2 Balance sheet (` m)
Fig 1 Income statement (` m)

Year-end: Mar
FY13
FY14
FY15e
FY16e
FY17e
Year-end: Mar
FY13
FY14
FY15e
FY16e
FY17e
413,940
2,860
395,110
397,970
0
0
15,970
413,940
64,680
23,440
18,320
357,070
70,830
24,350
239,650
22,240
49,570
1,890
8,590
39,090
501,040
2,860
472,440
475,300
0
0
25,740
501,040
78,870
24,990
23,980
442,710
83,510
28,110
302,580
28,510
69,510
1,730
7,000
60,780
563,693
2,860
534,447
537,307
0
0
26,386
563,693
91,272
24,990
24,310
504,635
83,639
35,138
355,520
30,338
81,514
1,803
8,400
71,311
618,239
2,860
588,218
591,078
0
0
27,161
618,239
104,475
24,990
24,690
560,832
88,864
43,922
394,130
33,916
96,747
2,011
10,080
84,656
677,802
2,860
646,851
649,711
0
0
28,091
677,802
118,862
24,990
25,126
624,353
94,859
54,902
436,339
38,252
115,528
2,311
12,096
101,121
Revenue (US$ m)
7,398
8,249
8,881
9,956
11,229
growth (%)
6%
12%
8%
12%
13%
Revenue (` m)
403,520 501,330 533,474 596,394 672,640
growth (%)
20%
24%
6%
12%
13%
Effective USD:INR
54.5
60.8
60.1
59.9
59.9
Cost of Revenues
(249,580) (317,890) (328,261) (363,616) (419,687)
SG&A
(38,360) (47,100) (52,155) (60,604) (67,855)
EBITDA
115,580 136,340 153,057 172,174 185,097
EBITDA margins (%)
28.6%
27.2%
28.7%
28.9%
27.5%
D&A
(11,290) (13,740) (11,474) (13,488) (15,716)
EBIT
104,290 122,600 141,584 158,686 169,381
EBIT margins (%)
25.8%
24.5%
26.5%
26.6%
25.2%
Other income
23,590
24,500
31,287
28,667
34,877
Tax
(33,670) (40,620) (48,858) (52,925) (57,676)
ETR (%)
-26%
-28%
-28%
-28%
-28%
Minority Interest
0
0
0
0
0
Net Profit
94,210 106,480 124,013 134,429 146,582
Net margins (%)
23.3%
21.2%
23.2%
22.5%
21.8%
EPS (`)
165
186
108
117
128
EPS growth (%)
13%
13%
-42%
8%
9%
Sources of Funds
Share capital
Reserves & Surplus
S/Hs Equity
Minority Interest
Total Debt
Other LT Liabilities
Application of Funds
Net Fixed Assets
Intangible/Goodwill
Other LT Assets
Current Assets
Accounts Receivable
Unbilled Revenues
Cash & Investments
Other CAs
Current Liabilities
Accounts Payable
Unearned revenue
Other CLs
Source: Company, Anand Rathi Research
Fig 4 Ratio analysis @ `2,070
Fig 3 Cash-flow statement (` m)

Year-end: Mar
Cash from Operations

PBT
Operating Profit before WC
Chg. in Trade Receivables
Chg. in Other CA
Chg. in Trade Payables
Chg. in Other CL
Others including taxes
Net Cash from Operations
Cash from Investments
Capex
Acquisitions
Investments & Others
Net Cash from Investing
Cash from Financing
Equity Issuance
Change in Borrowings
Dividends including DDT
Others
Net Cash from Financing
FY13
127,880
139,170
(9,890)
(9,280)
1,240
8,170
(34,630)
94,780
FY14
147,100
160,840
(12,680)
(7,400)
310
20,160
(39,360)
121,870
FY15e
172,871
184,345
(129)
(8,856)
73
11,931
(48,542)
138,822
FY16e
187,354
200,841
(5,224)
(12,363)
208
15,025
(52,529)
145,958
FY17e
204,258
219,975
(5,996)
(15,316)
300
18,481
(57,182)
160,262
(19,280) (27,450) (23,875) (26,691) (30,104)

(13,190)
(18,040) (22,580) (20,678) (9,564) (10,998)
(50,510) (50,030) (44,554) (36,255) (41,102)
10
(890)
(31,230) (31,430) (62,007) (80,657) (87,949)
(32,110) (31,430) (62,007) (80,657) (87,949)
Employees (EoP)
Rev/Employee(US$)
EBITDA/Employee(`)
FY13
FY14
FY15e
FY16e
FY17e
20%
49%
26%
19%
48%
24%
19%
50%
24%
19%
53%
24%
19%
52%
24%
23%
86
2
24%
81
2
26%
81
2
24%
81
2
24%
81
2
26%
26%
123%
74%
106%
104%
24%
24%
120%
72%
110%
105%
24%
27%
122%
72%
100%
105%
24%
27%
118%
72%
101%
105%
24%
25%
121%
72%
104%
104%
25.2
6.0
17.9
21.9
22.3
5.0
15.2
17.0
19.2
4.4
13.6
14.9
17.7
4.0
12.0
14.2
16.2
3.7
11.2
12.9
Fig 6 Assumptions
FY13
FY14
FY15e
FY16e
FY17e
156,688 160,405 168,011 187,011 205,011

47,215 51,426 52,859 53,240 54,775
737,644 849,974 910,997 920,662 902,865
Return Ratios
RoCE % (post-tax)
RoIC % (post-tax)
RoE %
Cash Ratios
CFO:Sales
AR days (incl. unbilled)
AP days
duPont Analysis
RoE %
EBIT margin %
PBT/EBIT %
PAT/PBT %
Total Asset turnover
Assets/Equity %
Valuation ratios
P/E (x)
P/B (x)
EV/EBITDA (x)
EV / Operating CF (x)
Fig 5 Key Parameters

Year-end: Mar
Year-end: Mar
Year-end: Mar
Chg in Realization % (est)

Gross Utilization (EoP) %
US$:`
FY13
FY14
FY15e
FY16e
FY17e
-3.2%
69%
54.5
-0.1%
73%
60.8
0.4%
75%
60.1
1.5%
76%
59.9
1.5%
77%
59.9
8 December 2014
Analyst Meet Takeaways

Betting on advanced tech to escape perpetual pricing pressure
Infosys believes that the pricing pressure that it and the industry are facing
today can only be countered if IT service providers move up the value chain
and start providing proactive and cost-effective (less labour dependent)
business solutions using IT. This would see the industry move away from
hiring in large numbers and break the linearity, to some extent.
Fig 7 Pricing pressure faced by the IT industry
Revenue per Employee (US$ 000s)
52.0
50.0
48.0
46.0
44.0
42.0
40.0
Infosys
TCS
FY14
FY13
FY12
FY11
FY10
38.0
Wipro

Note: The above numbers are simplified revenue per employee and do not take into account difference in utilization levels.
Infosys believes that the best way to move up the value chain for IT service
providers is to refresh the existing service lines by adding SMAC,
automation and AI flavours. For instance, it has developed the Infosys datatesting benchmark, which automates a large part of testing efforts (data
quality and completeness), and results in a 40% reduction in effort required.
Another example of such an approach is an integrated ADM and IMS
platform (Infosys automation platform), which would resolves tickets up
to 30% faster.
Fig 8 Refreshing the existing service lines to move up the value chain
These efforts when clubbed with a change in the company culture, from
largely being reactive in delivering solutions (as suggested by Infosys CSAT
scores and management interaction with clients) to being proactive in
finding business problems and then building solutions would help the
company leapfrog to a next-generation IT services one. This is the
managements vision for the next 3-5 years.
8 December 2014
Focus on design thinking and holistic solutions

Another step the company is taking on its journey to be a next-gen one is in
implementing design thinking in its offerings and in building holistic
solutions, against the present practice of building small pieces of software
supporting various business functions.
Design thinking develops solutions, in which holistic end-to-end IT
solutions are devised which solve critical business problems. As the word
holistic suggests, this includes integration of product-engineering systems
and typical IT-services functions. Hence, the former service line is expected
to play a critical role in this concept.
For instance, Infosys is building an oilfield-modeling and simulation solution
to determine the useful life of an oil field. This involves deployment of
sensors, building systems to collect data from sensors, analysing that data;
then coming out with important trends or reports which influence business
outcomes and which support decision-making at the top level. Another
example of these holistic solutions is to build a supply-chain solution for an
O&G company, optimising the routing and capacity-utilization companywide. This results in significant cost savings to a client.
In terms of building new solutions, Infosys is now focusing on scaling up its
Big Data & Analytics practice by offering industry-specific data-analytics
solutions. These solutions will run on common Infosys platforms
implementing open-source technologies. The value addition here would be
enterprise quality and IT delivery using open-source technologies where
Infosys engineering capabilities ensure optimum performance and
consistency with such technologies.
Fig 9 Addition of staff in last 6 months in various segments
Up-skilling employees using training infrastructure.

These initiatives and the new strategic direction require significantly
different skill sets of the workforce. To up-skill employees in these new
technologies and in design thinking, the company is using its extensive
training infrastructure and collaborations with universities worldwide. The
training program includes the sales staff, which is being trained in
effectiveness, cross-selling, design-thinking and proposal-writing.
8 December 2014
Fig 10 Up-skilling delivery and sales employees
Up-skilling
employees
In addition to training employees, the company is also ramping up staff in

the identified growth areas and is taking steps to reduce attrition in both
sales and delivery. Infosys has made adjustments to compensation and
incentive structures and is trying to work on the softer aspects such as
employee engagement (murmuration) and feedback system (satisfaction
surveys) to curtail attrition.
Fig 11 Steps taken by the company to control attrition
Also, the way the new strategy works is by training all employees without
really segregating various service lines (next gen and old gen). This, by
design, is expected to smoothen any friction or dissatisfaction among
Infosys large employee base as the company is attempting to bridge the
divide in its workforce.
According to the management, this would reduce disruption in operations
(thus raising the probability of success) while simultaneously pushing it in its
strategic direction. In our opinion, this is a significant change from the
previous strategy where the idea was to move from a pure IT-services
company to a consulting and SI-led one.
8 December 2014
Margin outlook intact but finer details in April

Infosys has maintained its outlook of stable EBIT margins (25% +/100bps) in the medium term, re-iterating its vision of profitable industryleading growth despite investments in sales, products and delivery. This
would essentially be driven by operational-efficiency improvements being
ploughed back into the business to build new capabilities. The company has
seen a 25.6% margin in 1HFY15 and, assuming that some investments are
already underway and, hence, costs are already being reflected in margins, we
do not see any meaningful pressure on margins. Our FY17 estimates build in
a 50-bp higher margin now vs. earlier, given the managements confidence
about maintaining margins despite acceleration in revenue growth.
Fig 13 Infosys EBIT margin performance
6
4,000
Revenues
FY17e
FY16e
FY15e
FY14
FY13
3QFY13
2,000
yoy growth (RHS)
2QFY15
8
6,000
1QFY15
10
8,000
4QFY14
12
3QFY14
10,000
(%)
27
26
26
25
25
24
24
23
23
22
2QFY14
(%)
14
1QFY14
(US$m)
12,000
4QFY13
Fig 12 Revenue growth expectations
EBIT margin %
The company will come out with a detailed strategy by April. This will
include the financial impact of the new strategy and the much-awaited
capital allocation plan. At the analyst meet Infosys talked about being more
active in M&As, but this would be restricted to acquiring next-generation
companies/platforms rather than scale.
Estimate revision and Valuation
After the analyst meet we have made no change to our revenue estimates,
while the EPS for FY17 is up a marginal 1.7% on account of the better
margin outlook, leading to an upward, 2%, revision to our target price. The
target multiple is the same, at 18x FY17e, but the recent run-up in the stock
price (11% in the last three months) has led us to changing our
recommendation to a Hold.
Fig 14 Revision in estimates
FY15
`m
Revenues (US$m)
New
Old
8,881
8,881
FY16
FY17
% Chg
New
Old
% Chg
New
Old
% Chg
9,956
9,956
11,229
11,229
Revenues
533,474 533,474
- 596,394 596,394
- 672,640 672,640
EBITDA
153,057 153,057
- 172,174 172,174
- 185,097 181,741
1.8
EBITDA margin %
EBIT
EBIT margin %
28.7%
28.7%
141,584 141,584
26.5%
26.5%
0 bps
28.9%
28.9%
- 158,686 158,686
0 bps
26.6%
26.6%
0 bps
27.5%
27.0%
- 169,381 166,025
0 bps
25.2%
24.7%
50 bps
2.0
50 bps
PBT
172,871 172,871
- 187,354 187,354
- 204,258 200,902
1.7
Net Profit
124,013 124,013
- 134,429 134,429
- 146,582 144,169
1.7
Appendix
Analyst Certification
The views expressed in this Research Report accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the
compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research
analyst(s) in this report. The research analysts are bound by stringent internal regulations and also legal and statutory requirements of the Securities and Exchange
Board of India (hereinafter SEBI) and the analysts compensation are completely delinked from all the other companies and/or entities of Anand Rathi, and have
no bearing whatsoever on any recommendation that they have given in the Research Report.
Important Disclosures on subject companies
Rating and Target Price History (as of 6 December 2014)
2,400
Infosys
1
2
3
4
5
6
7
8
2,200
2,000
1,800
1,600
1,400
Date
25-Nov-13
14-Mar-14
1-Apr-14
4-Jun-14
17-Jun-14
20-Aug-14
1-Oct-14
13-Oct-14
Rating
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
TP
(`)
4,100
3,900
3,705
3,550
3,700
4,050
4,300
4,500
Share
Price (`)
3,349
3,358
3,263
3,017
3,242
3,567
3,751
3,889
1,200
Dec-14
Oct-14
Nov-14
Sep-14
Jul-14
Aug-14
Jun-14
Apr-14
May-14
Mar-14
Jan-14
Feb-14
Dec-13
Oct-13
Nov-13
Sep-13
Jul-13
Aug-13
Jun-13
Apr-13
May-13
Mar-13
Jan-13
Feb-13
1,000
The research analysts, strategists, or research associates principally responsible for the preparation of Anand Rathi Research have received compensation based
upon various factors, including quality of research, investor client feedback, stock picking, competitive factors, firm revenues and overall investment banking
revenues.
Anand Rathi Ratings Definitions
Analysts ratings and the corresponding expected returns take into account our definitions of Large Caps (>US$1bn) and Mid/Small Caps (<US$1bn) as described
in the Ratings Table below:
Ratings Guide
Large Caps (>US$1bn)
Mid/Small Caps (<US$1bn)
Buy
>15%
>25%
Anand Rathi Research Ratings Distribution (as of 6 December 2014)

Buy
Anand Rathi Research stock coverage (196)
60%
% who are investment banking clients
4%
Hold
5-15%
5-25%
Sell
<5%
<5%
Hold
27%
0%
Sell
13%
0%
Other Disclosures
This report has been issued by ARSSBL which is a SEBI regulated entity, and which is in full compliance with all rules and regulations as are applicable to its
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Auto Components
India I Equities
Visit Note
8 December 2014
Indag Rubber
Rating: NA
Target Price: NA
Share Price: `764
Tyre-retreading specialist
Key data
Mar14
74.77
25.23
0.46
0.03
24.74
75.00
25.00
0.00
0.04
24.96
Relative price performance

800
IDR
700
600
500
400
Sensex
300
Dec-14
200
Aug-14
`
Our
take. Indag is a niche operator in the replacement segment as an
alternative to direct tyre demand. With recovery in CV demand expected to
gather momentum ahead, demand for retreading would also expand. Indags
FY14 EBITDA margin came at ~16%, comparing favourably with most tyre
manufacturers; it has healthy return ratios and good cash-flow generation.
Risks. Competition in the unorganised sector, delayed growth.
Jun14
74.77
25.23
0.93
0.01
24.29
Jun-14
Re-treading provides a cost-effective option. Re-treading turns out to be

lower cost than a new tyre since it consumes less natural rubber at ~25%
only. According to the management, the potential cost savings are 30% to
50% of the price of a new tyre.
Sep14
Promoters
- of which, Pledged
Free Float
- Foreign Institutions
- Domestic Institutions
- Public
Apr-14
CVs comprise the most important sub-segment. Since 90% of sales are
to the CV sub-segment, the slowdown has hampered growth for Indag in
the past two years. Of the CVs sold domestically, ~80% of all CV tyres are
retreaded. Further, up to a maximum of three retreads are possible.
`839 / `212
28458 / 8538
US$0.1m
`4.10bn / US$67.1m
5.25m
Shareholding pattern (%)
Feb-14
Tread manufacturing is a steadily growing segment. The company

estimates the size of the tread-manufacturing segment at `32bn. Of this, the
organised cold-process sub-segment, where Indag operates, constitutes
~33%. The segment has had a 4.3% CAGR in the past four years. However,
this has to be considered in conjunction with the fact that demand has
significantly decelerated since Sep12.
Dec-13
A leading tyre-retreader in India. The second-largest operator in the

organised cold-retreading arena, with a market share of 20-25%, Indag Rubber
was incorporated in 1978 in a joint venture with the US-based Bandag. The
latter exited in 2006. That year the company started investing in building up
capacity by setting up the Nalagarh, Himachal Pradesh, plant. In the next five
years, this was more than doubled, from 6,000 tonnes to 13,800 tonnes.
IDR IN / IDGR.BO
52-week high / low

Sensex / Nifty
3-m average volume
Market cap
Shares outstanding
Oct-14
Key takeaways
Source: Bloomberg
Key financials (YE Mar)
FY10
FY11
FY12
FY13
FY14
1,113
1,500
2,162
2,349
2,323
Net profit (` m)
116
108
209
252
276
EPS (`)
22.1
20.6
39.9
48.0
52.6
Growth (%)
52.5
(6.7)
93.1
20.5
9.6
PE (x)
34.2
36.6
19.0
15.7
14.4
PBV (x)
11.0
8.9
6.4
4.9
3.9
RoE (%)
32.2
24.4
34.0
30.9
26.8
RoCE (%)
28.1
28.5
44.4
40.4
34.9
Sales (` m)
Dividend yield (%)
0.5
0.5
0.8
1.1
1.3
Net gearing (%)
0.2
0.2
0.0
0.0
0.0
Anand Rathi Shares and Stock Brokers Limited (hereinafter ARSSBL) is a full service brokerage and equities research firm and the views expressed therein are solely of
ARSSBL and not of the companies which have been covered in the Research Report. This report is intended for the sole use of the Recipient and is to be circulated only within
India and to no countries outside India. Disclosures and analyst certifications are present in Appendix.
India Equities
8 December 2014
Indag Rubber Tyre re-treading specialist
Quick Glance Financials and Valuations

Fig 2 Balance sheet (` m)
Fig 1 Income statement (` m)

Year-end: Mar
Net revenues
Revenue growth (%)
- Oper. expenses
EBIDTA
EBITDA margins (%)
- Interest
- Depreciation
+ Other income
- Tax
Effective tax rate (%)
Reported PAT
Extraordinary items
Adjusted PAT
PAT growth (%)
Adj. FDEPS (`/sh)
Adj. FDEPS growth (%)
FY10
FY11
FY12
FY13
FY14
1,113
46%
982
132
12%
4
16
8
3
3
116
116
52.5
22.1
52.5
1,500
35%
1,336
164
11%
11
19
4
29
21
108
108
(6.7)
20.6
(6.7)
2,162
44%
1,865
297
14%
12
23
10
61
23
209
209
93.1
39.9
93.1
2,349
9%
2,005
344
15%
4
25
16
79
24
252
252
20.5
48.0
20.5
2,323
-1%
1,951
373
16%
3
25
17
85
23
276
276
9.6
52.6
9.6
FY10
FY11
FY12
FY13
FY14
53
308
361
73
0
7
441
196
0
233
11
441
0
64
69
53
391
444
72
0
5
521
222
0
286
13
521
0
61
85
53
563
616
13
0
9
637
244
5
373
15
637
0
62
117
53
764
817
0
0
15
831
237
267
310
18
831
0
47
156
53
978
1,031
0
0
14
1,045
271
400
340
33
1,045
0
55
196
Fig 4 Ratio analysis @ `764
Fig 3 Cash-flow statement (` m)

PAT
+ Non-cash items
Cash profit
- Incr./(decr.) in WC
Operating cash-flow
- Capex
Free cash-flow
- Dividend
+ Equity raised
+ Debt raised
- Investments
- Misc. items
Net cash-flow
+ Op. cash & bank bal.
Cl. Cash & bank bal.
Share capital
Reserves & surplus
Net worth
Total debt
Minority interest
Def. tax liab. (net)
Capital employed
Net fixed assets
Investments
- of which, Liquid
Working capital
Cash
Capital deployed
Net debt/equity (%)
W C turn (days)
Book value (`/sh)
Year-end: Mar
Year-end: Mar
FY10
FY11
FY12
FY13
FY14
116
20
136
120
16
61
(46)
25
71
0
0
1
11
11
108
17
125
52
73
45
28
24
(1)
0
0
1
11
13
209
27
237
87
149
45
104
37
(59)
5
0
3
13
15
252
31
283
(63)
347
18
329
49
(13)
262
0
3
15
18
276
25
301
30
270
60
211
61
0
134
0
15
18
33
Year-end: Mar
FY10
FY11
FY12
FY13
FY14
P/E (x)
Cash P/E (x)
EV/EBITDA (x)
EV/sales (x)
P/B (x)
RoE (%)
RoCE (%)
Dividend yield (%)
Dividend payout (%)
Debt to equity (x)
Debtor days
Inventory days
Payables days
W.C. days
Fixed asset T/O (x)
34.2
30.0
30.6
3.6
11.0
32.2
28.1
0.5
18.1
0.2
41.7
77.6
55.0
64.3
5.7
36.6
31.1
24.5
2.7
8.9
24.4
28.5
0.5
19.4
0.2
35.2
66.7
40.9
61.0
6.8
19.0
17.1
13.4
1.8
6.4
34.0
44.4
0.8
15.1
0.0
35.3
65.0
38.3
62.1
8.9
15.7
14.3
10.7
1.6
4.9
30.9
40.4
1.1
16.7
32.4
56.8
41.7
47.5
9.9
14.4
13.2
10.0
1.6
3.9
26.8
34.9
1.3
19.0
39.5
58.8
43.6
54.8
8.6
Fig 5 Tread manufacturing segment size
Fig 6 FY14 revenue break-up
Source: Bloomberg, Anand Rathi Research
Source: Company
8 December 2014
Indag Rubber Tyre re-treading specialist
Meeting highlights
The company is entering the aircraft re-treading sub-segment; products

are currently at the development stage and would take 1-2 years to
launch.
Re-treading of imported tyres from China is difficult as the casings are

weak.
For distribution, the companys dispatches go from its plant to its

depots in each state. From here, they sent to local customers. In some,
sales are to dealers, while in others the company sells directly to
retailers.
While most of the business is retail, institutional sales constitute ~20%

of the total (to customers like STUs).
While Indags current capacity is 13,800 tonnes, sales at present are

10,000 tonnes.
The company has ~400 major dealers in 25 states, besides ~300 small
dealers.
Key states for it are Tamil Nadu, Maharashtra, Andhra Pradesh,

Gujarat, Rajasthan, and Jammu and Kashmir.
Gum and spray cement combined constitute ~10% of total revenue.
The excise-duty benefits and income-tax exemption available to the

company are expected to end in FY16.
Appendix
The views expressed in this Research Report accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the compensation of the research
analyst(s) was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s) in this report. The research analysts are bound by
stringent internal regulations and also legal and statutory requirements of the Securities and Exchange Board of India (hereinafter SEBI) and the analysts compensation are completely
delinked from all the other companies and/or entities of Anand Rathi, and have no bearing whatsoever on any recommendation that they have given in the Research Report.
The research analysts, strategists, or research associates principally responsible for the preparation of Anand Rathi Research have received compensation based upon various factors,
including quality of research, investor client feedback, stock picking, competitive factors, firm revenues and overall investment banking revenues.
Analysts ratings and the corresponding expected returns take into account our definitions of Large Caps (>US$1bn) and Mid/Small Caps (<US$1bn) as described in the Ratings Table
below:
Ratings Guide
Buy
>15%
>25%
Anand Rathi Research Ratings Distribution (as of 3 September 2014)

Buy
60%
4%
Hold
5-15%
5-25%
Sell
<5%
<5%
Hold
27%
0%
Sell
13%
0%
Other Disclosures
This report has been issued by ARSSBL which is a SEBI regulated entity, and which is in full compliance with all rules and regulations as are applicable to its functioning and governance.
The investors should note that ARSSBL is one of the companies comprising within ANAND RATHI group, and ANAND RATHI as a group consists of various companies which may
include (but is not limited to) its subsidiaries, its affiliates, its group companies who may hold positions, views, stakes and may service the companies covered in this report independent of
ARSSBL. Investors are cautioned to be aware that there could arise a potential conflict of interest in the views held by ARSSBL and other companies of Anand Rathi who maybe affiliated,
connected or catering to the companies mentioned in the Research Report; even though, ARSSBL and Anand Rathi are fully complaint with all procedural and operational regulatory
requirements. Thus, investors should not use this as a sole basis for making their investment decision and should consider the recommendations mentioned in the Research Report
bearing in mind the aforementioned.
Further, the information herein has been obtained from various sources which we believe is reliable, and we do not guarantee its accuracy or completeness. Neither the information nor
any opinion expressed herein constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities
(hereinafter referred to as Related Investments). ARSSBL and/or Anand Rathi may trade for their own accounts as market maker / jobber and/or arbitrageur in any securities of the
companies mentioned in the Research Report or in related investments, and may be on taking a different position from the ones which haven been taken by the public orders. ARSSBL
and/or Anand Rathi and its affiliates, directors, officers, and employees may have a long or short position in any securities of the companies mentioned in the Research Report or in
Related Investments. ARSSBL and/or Anand Rathi, may from time to time, perform investment banking, investment management, financial advisory or any other services not explicitly
mentioned herein, or solicit investment banking or other business from, any entity and/or company mentioned in this Research Report; however, the same shall have no bearing
whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the other companies of
Anand Rathi, even though there might exist an inherent conflict of interest.
Furthermore, this Research Report is prepared for private circulation and use only. It does not have regard to the specific investment objectives, financial situation and the specific
financial needs or objectives of any specific person who may receive this Research Report. Investors should seek financial advice regarding the appropriateness of investing in any
securities or investment strategies discussed or recommended in this Research Report, and, should understand that statements regarding future prospects may or may not be realized,
and we can not guarantee the same as analysis and valuation is a tool to enable investors to make investment decisions but, is not an exact and/or a precise science. Investors should
note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Past performance is not necessarily a guide to future performance.
Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investments mentioned in this report.
This material was produced by ARSSBL, solely for information purposes and for the use of the recipient. It is not to be reproduced under any circumstances and is not to be copied or
made available to any person other than the recipient. It is distributed in the United States of America by Enclave Capital LLC (19 West 44th Street, Suite 1700, New York, NY 10036) and
elsewhere in the world by ARSSBL or an authorized affiliate of ARSSBL (such entities and any other entity, directly or indirectly, controlled by ARSSBL, the Affiliates). This document
does not constitute an offer of, or an invitation by or on behalf of ARSSBL or its Affiliates or any other company to any person, to buy or sell any security. The information contained herein
has been obtained from published information and other sources, which ARSSBL or its Affiliates consider to be reliable. None of ARSSBL or its Affiliates accepts any liability or
responsibility whatsoever for the accuracy or completeness of any such information. All estimates, expressions of opinion and other subjective judgments contained herein are made as of
the date of this document. Emerging securities markets may be subject to risks significantly higher than more established markets. In particular, the political and economic environment,
company practices and market prices and volumes may be subject to significant variations. The ability to assess such risks may also be limited due to significantly lower information
quantity and quality. By accepting this document, you agree to be bound by all the foregoing provisions.
3. ARSSBL or its affiliates may have or not received compensation for investment banking services from the issuer of these securities in the past 12 months and do not expect to receive
compensation for investment banking services from the issuer of these securities within the next three months.
4. However, one or more of ARSSBL or its Affiliates may, from time to time, have a long or short position in any of the securities mentioned herein and may buy or sell those securities or
options thereon, either on their own account or on behalf of their clients.
6. ARSSBL or its Affiliates may or may not, to the extent permitted by law, act upon or use the above material or the conclusions stated above, or the research or analysis on which they
are based before the material is published to recipients and from time to time, provide investment banking, investment management or other services for or solicit to seek to obtain
investment banking, or other securities business from, any entity referred to in this report.
Enclave Capital LLC is distributing this document in the United States of America. ARSSBL accepts responsibility for its contents. Any US customer wishing to effect transactions in any
securities referred to herein or options thereon should do so only by contacting a representative of Enclave Capital LLC.
2014 Anand Rathi Shares and Stock Brokers Limited. All rights reserved. This report or any portion thereof may not be reprinted, sold or redistributed without the prior written consent of
Anand Rathi Shares and Stock Brokers Limited.
Appendix
The views expressed in this Research Report accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the compensation of the research
analyst(s) was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s) in this report. The research analysts are bound by
stringent internal regulations and also legal and statutory requirements of the Securities and Exchange Board of India (hereinafter SEBI) and the analysts compensation are completely
delinked from all the other companies and/or entities of Anand Rathi, and have no bearing whatsoever on any recommendation that they have given in the Research Report.
The research analysts, strategists, or research associates principally responsible for the preparation of Anand Rathi Research have received compensation based upon various factors,
including quality of research, investor client feedback, stock picking, competitive factors, firm revenues and overall investment banking revenues.
Analysts ratings and the corresponding expected returns take into account our definitions of Large Caps (>US$1bn) and Mid/Small Caps (<US$1bn) as described in the Ratings Table
below:
Ratings Guide
Buy
>15%
>25%
Anand Rathi Research Ratings Distribution (as of 3 September 2014)

Buy
60%
4%
Hold
5-15%
5-25%
Sell
<5%
<5%
Hold
27%
0%
Sell
13%
0%
Other Disclosures
This report has been issued by ARSSBL which is a SEBI regulated entity, and which is in full compliance with all rules and regulations as are applicable to its functioning and governance.
The investors should note that ARSSBL is one of the companies comprising within ANAND RATHI group, and ANAND RATHI as a group consists of various companies which may
include (but is not limited to) its subsidiaries, its affiliates, its group companies who may hold positions, views, stakes and may service the companies covered in this report independent of
ARSSBL. Investors are cautioned to be aware that there could arise a potential conflict of interest in the views held by ARSSBL and other companies of Anand Rathi who maybe affiliated,
connected or catering to the companies mentioned in the Research Report; even though, ARSSBL and Anand Rathi are fully complaint with all procedural and operational regulatory
requirements. Thus, investors should not use this as a sole basis for making their investment decision and should consider the recommendations mentioned in the Research Report
bearing in mind the aforementioned.
Further, the information herein has been obtained from various sources which we believe is reliable, and we do not guarantee its accuracy or completeness. Neither the information nor
any opinion expressed herein constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities
(hereinafter referred to as Related Investments). ARSSBL and/or Anand Rathi may trade for their own accounts as market maker / jobber and/or arbitrageur in any securities of the
companies mentioned in the Research Report or in related investments, and may be on taking a different position from the ones which haven been taken by the public orders. ARSSBL
and/or Anand Rathi and its affiliates, directors, officers, and employees may have a long or short position in any securities of the companies mentioned in the Research Report or in
Related Investments. ARSSBL and/or Anand Rathi, may from time to time, perform investment banking, investment management, financial advisory or any other services not explicitly
mentioned herein, or solicit investment banking or other business from, any entity and/or company mentioned in this Research Report; however, the same shall have no bearing
whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the other companies of
Anand Rathi, even though there might exist an inherent conflict of interest.
Furthermore, this Research Report is prepared for private circulation and use only. It does not have regard to the specific investment objectives, financial situation and the specific
financial needs or objectives of any specific person who may receive this Research Report. Investors should seek financial advice regarding the appropriateness of investing in any
securities or investment strategies discussed or recommended in this Research Report, and, should understand that statements regarding future prospects may or may not be realized,
and we can not guarantee the same as analysis and valuation is a tool to enable investors to make investment decisions but, is not an exact and/or a precise science. Investors should
note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Past performance is not necessarily a guide to future performance.
Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investments mentioned in this report.
This material was produced by ARSSBL, solely for information purposes and for the use of the recipient. It is not to be reproduced under any circumstances and is not to be copied or
made available to any person other than the recipient. It is distributed in the United States of America by Enclave Capital LLC (19 West 44th Street, Suite 1700, New York, NY 10036) and
elsewhere in the world by ARSSBL or an authorized affiliate of ARSSBL (such entities and any other entity, directly or indirectly, controlled by ARSSBL, the Affiliates). This document
does not constitute an offer of, or an invitation by or on behalf of ARSSBL or its Affiliates or any other company to any person, to buy or sell any security. The information contained herein
has been obtained from published information and other sources, which ARSSBL or its Affiliates consider to be reliable. None of ARSSBL or its Affiliates accepts any liability or
responsibility whatsoever for the accuracy or completeness of any such information. All estimates, expressions of opinion and other subjective judgments contained herein are made as of
the date of this document. Emerging securities markets may be subject to risks significantly higher than more established markets. In particular, the political and economic environment,
company practices and market prices and volumes may be subject to significant variations. The ability to assess such risks may also be limited due to significantly lower information
quantity and quality. By accepting this document, you agree to be bound by all the foregoing provisions.
3. ARSSBL or its affiliates may have or not received compensation for investment banking services from the issuer of these securities in the past 12 months and do not expect to receive
compensation for investment banking services from the issuer of these securities within the next three months.
4. However, one or more of ARSSBL or its Affiliates may, from time to time, have a long or short position in any of the securities mentioned herein and may buy or sell those securities or
options thereon, either on their own account or on behalf of their clients.
6. ARSSBL or its Affiliates may or may not, to the extent permitted by law, act upon or use the above material or the conclusions stated above, or the research or analysis on which they
are based before the material is published to recipients and from time to time, provide investment banking, investment management or other services for or solicit to seek to obtain
investment banking, or other securities business from, any entity referred to in this report.
Enclave Capital LLC is distributing this document in the United States of America. ARSSBL accepts responsibility for its contents. Any US customer wishing to effect transactions in any
securities referred to herein or options thereon should do so only by contacting a representative of Enclave Capital LLC.
2014 Anand Rathi Shares and Stock Brokers Limited. All rights reserved. This report or any portion thereof may not be reprinted, sold or redistributed without the prior written consent of
Anand Rathi Shares and Stock Brokers Limited.

India Morning Bell 8th December 2014

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India Morning Bell

All the latest research and data

Infosys Entering a critical execution phase; Hold. One of the

India: Food & fuel drive down non-core inflation

Chart of the day

Oil Brent (US$/bbl)*

@7:30am *Provisional Source: BSE, Bloomberg

India Morning Bell

EXIDE INDUS LTD

JET AIRWAYS IND

GULF OIL LUBRICA

PUNJAB NATL BANK

BAJAJ CORP LTD

ATUL AUTO LTD

OIL & NATURAL GA

GULF OIL LUBRICA

JET AIRWAYS IND

SUN PHARMA ADV

Above 200 DMA

Above 200 DMA

NITIN FIRE PROT

ATUL AUTO LTD

KAILASH AUTO FIN

JINDAL STEEL & P

SAFAL HERBS LTD

KAILASH AUTO FIN

Below 200 DMA

Below 200 DMA

ESS DEE ALUMINIU

Anand Rathi Research

Entering a critical execution phase; Hold

52-week high / low

Shareholding pattern (%)

Sep 14 Jun 14 Mar 14

Estimates revision (%)

Relative price performance

Net profit (`m)

RoCE (%) after tax

Dividend yield (%)

Infosys Entering a critical execution phase; Hold

Quick Glance Financials and Valuations

Fig 1 Income statement (` m)

Source: Company, Anand Rathi Research

Source: Company, Anand Rathi Research

Fig 4 Ratio analysis @ `2,070

Fig 3 Cash-flow statement (` m)

Cash from Operations

(19,280) (27,450) (23,875) (26,691) (30,104)

Source: Company, Anand Rathi Research

156,688 160,405 168,011 187,011 205,011

Source: Company, Anand Rathi Research

Anand Rathi Research

Source: Company, Anand Rathi Research

Fig 5 Key Parameters

Chg in Realization % (est)

Source: Company, Anand Rathi Research

Infosys Entering a critical execution phase; Hold

Analyst Meet Takeaways

Source: Company, Anand Rathi Research

Source: Company, Anand Rathi Research

Anand Rathi Research

Infosys Entering a critical execution phase; Hold

Focus on design thinking and holistic solutions