NiveshDaily - 20 February, 2017

NiveshDaily
February 20, 2017

INDICES
Indices Previous (day) Close % chg From Research Desk
Sensex 28468.8 0.6 %
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(As on 17th February, 2017)
 Sector – Defense & Aerospace

Daljeet S. Kohli
Head of Research
Tel: +91 22 66188826
daljeet.kohli@indianivesh.in
IndiaNivesh Securities Limited | Research Analyst SEBI Registration No. INH000000511
IndiaNivesh Research 601 & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai 400 007. Tel: (022) 66188800

IndiaNivesh Research is also available on Bloomberg INNS, Thomson First Call, Reuters and Factiva INDNIV.
Sector – Defense & Aerospace

February 20, 2017

Daljeet S. Kohli Following are the key developments from the Defense space that we track for the
Head of Research week of 13‐19 February, 2017.

Tel: +91 22 66188826
daljeet.kohli@indianivesh.in

Political Developments
 India in talks with Vietnam for Missile sale

Santosh Yellapu

Research Analyst

Tel: +91 22 66188832 Industry Developments
santosh.yellapu@indianivesh.in  Aero India 2017, turns to be a low‐key event

 Indian‐US agencies to work closely on eco‐friendly explosives

 UEC to offer post sale support services for RD‐33MK engines

 India to send 2nd Submarine to Russia for refit

 ISRO launches 104 satellites in one go

Corporate News
 News updates on HAL
 TATA‐backed Nova Integrated signs Rs2bn deal with IN

 MKU to soon start deliveries of Bulletproof Helmets & jackets

 Aequs to set‐up Rs 5bn facility in Goa

Top Bets
 Bharat Electronics Ltd. (BEL)

Upcoming Bids

Glossary

IndiaNivesh Securities Limited|Research Analyst SEBI Registration No. INH000000511
IndiaNivesh Research 601 & 602, SukhSagar, N. S. PatkarMarg, GirgaumChowpatty, Mumbai 400 007. Tel: (022) 66188800
IndiaNivesh Research is also available on Bloomberg INNS, Thomson First Call, Reuters and Factiva INDNIV.
Sector | Defense & Aerospace (contd...)

Political Developments:
 India in talks with Vietnam for Missile sale
India is in later stages of selling short range surface‐to‐air missiles (i.e. Akash Missiles) to
Vietnam for an undisclosed amount. India is already helping the Vietnamese military with
training and patrol vessels. Also, Modi government announced $ 500mn credit line to
Vietnam in 2016 to buy defense equipment, on top of $ 100mn given previously to help it
buy patrol boats. Both the sides have also agreed for training of Vietnamese Air force pilots
to operate Su‐30 Russian fighter planes.
Our View:
We see this to be a positive development and in‐line with MoD’s target to grow the Indian
Defense exports to $2bn in next few years. Sale of Akash Missiles would benefit a host of
private companies like, BEL, Astra Microwave and Premier Explosives.
Industry Developments:
 Aero India 2017, turns to be a low‐key event
th th
Bangalore hosted the 11 edition of Aero India during Feb 14‐18, 2017. The 11 edition
witnessed participation of 549 companies (global and Indian), 72 Aircrafts from 51 countries.
USA company’s participation was a tad bit lesser than anticipated. In the backdrop of such big
event, lot of expectations on Strategic partnership, deals announcements were anticipated.
Also, no roadmap for the production tender of single engine fighters for IAF was announced.
9 JV’s/ MoU’s were signed in anticipation of large ticket projects to be awarded going
forward.
Sl.
Indian Entity MNC JV/MoU Area covered Comments
No.
Tata Advanced Stinger Air Defense Missile (surface‐to‐air and In 2016 India ordered Stinger missiles to equip its AH‐64 Apache helicopters,
1 Raytheon MoU
Systems air‐to‐air) components. which would soon enter service with IAF.
Dynamatic Tech. Ltd Israel Aerospace Transfer of technology (Tot), production, assembling and support of Mini
2 MoU Unmanned Aerial Vehicles (UAV).
(DTL) Industries (IAI) UAVs in India.
Kalyani Strategic Israel Aerospace Build, manufacture specific Air Defense systems,
3 JV JV to be formed soon.
Systems Ltd. (KSSL) Industries (IAI) ground‐to‐ground and ground‐to‐sea munitions.
L&T MBDA Missile Systems Ltd would be incorporated in the 1HCY2017 after
Jointly develop new Anti‐tank guided missile
4 L&T MBDA JV grant of all necessary approvals. L&T will own 51% stake and MBDA will own
marks.
49%.
Bharat Dynamics Ltd Assess opportunities for transfer of technology
5 Thales MoU To also cater to the International demand.
(BDL) for the StarStreak missile capability.
Mahindra
6 Segnere SAS MoU Airframe manufacturing opportunities. To also cater to the International demand.
Aerostructures
Address drones market in Indian Defense and
7 Axiscades Drone Vault MoU Gives access to established and state‐of‐the‐art Drone Hercules 5 UF
Aerospace sector.
Provide manufacturing and maintenance, repair
JV launched as Aerotek Sika Aviation Engineering; Secured customer launch
and overhaul (MRO) of Landing Gear, Hydraulic
8 Sika Interplast Aerotek Aviation JV order for manufacture, assembly and testing of a number of ship sets of
line replaceable units (LRUs) and Actuators for
6.5tn fixed wing aircraft.
fixed and rotary wing aircraft.
Work together on guided missiles, radar and Signed contracts to export naval Combat Management System to Malaysia
9 Samtel Avoinics Hanwha Systems MoU
laser guided bombs, amongst other areas. and supply surveillance reconnaissance systems to Indonesia.
Source: IndiaNivesh Research
Notably 2 deals were done. First one is between Saab’s Indian subsidiary Saab Grintek
Defense and HAL was signed to deliver transfer of technology for maintenance of Saab’s
Integrated Defensive Aids Suite (IDAS) System worth $8.5mn (Rs 595mn). IDAS serves as
electronic warfare self‐protection system for IAF’s and Army Aviation Corp’s Dhruv Advanced
Light Helicopters, which HAL manufactures currently. The second one is a $30mn offset
obligation, between Elbit Systems (Israel) and Alpha Design Technologies. Alpha Design would
manufacture key sub‐units like, smart cockpit displays, transponder, digital voice recorder
(DVR), missile launch detection systems (MILDS), cables and brackets for IAF’s 90 Mi‐17
Helicopters.
Alpha Design management has shown optimism that they would win upgrade contract
related to Ka‐226, Light Combat Helicopter, ACH, Chinook, Apache Helicopters, going forward.
Currently, management claims to be sitting over an order book of $250mn (Rs 17.5bn) to be
executed over the next 3 years.

(contd...) February 20, 2017 | 2


 Indian‐US agencies to work closely on eco‐friendly explosives
On Feb‐15, DRDO’s High‐Energy Material Research Laboratory (HEMRL), Pune and USA based
Army Research and Development Engineering Center (ARDEC) signed a MoU to develop eco‐
friendly primary explosives.
As per the agreement, both countries scientists would work on synthesis and characterization
of various green primary compounds, share information and technology for mutual benefits.
 UEC to offer post sale support services for RD‐33MK engines
United Engine Corporation (UEC) announced that it recently completed the delivery of RD‐
33MK engines for MiG‐29K/KUB fleet. With this RD‐33MK engines are now installed in MiG‐
29K/KUB fleet and MiG‐35 4+ generation multi‐role fighters. RD‐33MK is a turbofan engine,
equipped with modern FADEC‐type engine control system and is a heavily upgraded version
of RD‐33. Now the Russian company has said that it intends to offer an after sales support
program (includes repairs, maintenance, logistical support, delivery of technical
documentation, staff training) for these engines.
nd
 India to send 2 Submarine to Russia for refit
IN has initiated the process for second Major Refit and Life Certification (MRLC) its Kilo‐class
Submarine, Sindhuraj at a cost of $208mn (the same cost for Sindhukesari). IN has issued
tender to transport this submarine from Visakhapatnam to Severodvinsk, Russia on a
transport dock ship during 01‐May to 15‐June, 2017 (reflecting 45 days assumption to
transport the Submarine).
This refitting initiative (includes equipping submarines with land attack cruise missiles) is part
of India’s contract with Russia to refit 4 of its 9 kilo class submarines at a total cost of $800
mn. Sindhukesari, another Kilo class is already undergoing a refit process since 2016 at Russia.
IN will offload 2 kilo‐class submarine to L&T’s Katupalli shipyard in Tamil Nadu next month,
where it will work in partnership with Russian shipbuilder Zvezdochka. Earlier, both Sindhuraj
& Sindhukesari had refits in Russia during 1999‐2001 for $55mn.
Our View:
IN earlier had devised 30‐years Submarine plan, where it wanted to acquire 12 Submarines (6
from West and 6 from Russia) and use that technology to design and build an indigenous
submarine, which failed to take‐off owing to HDW submarine scam. As a result the IN had to
repeatedly extend the life of the existing Submarines. Submarines have authorized technical
service life of ~35 years. At around 13th year of service, each Submarine undergoes MRLC,
which takes 2‐3 years for all major upgrades. On completion of MRLC exercise, Submarine’s
life gets extended by decade‐plus. Then, around 26th year of service, each boat undergoes a
27‐30 month 2nd MRLC/ Service Life Extension Program (SLEP), which enables it to be
operationally viable for another 9‐10 years. This is the usual process IN follows for extending
the life of Submarines.



Details of the kilo‐class Submarine refits and their residual life:
th th nd th
Submarine Commissioned On 13 year Medium Refit (MR) MR done at 26 year 2 MR/ SLEP time (at) 35 year
Sindhughosh 30‐Apr‐1986 Apr‐1999 2002‐05 Russia Apr‐2012 Apr‐2021
Sindhudhvaj 12‐Jun‐1987 Jun‐2000 2002‐05 India (ND‐V) Jun‐2013 Jun‐2022
Sindhuraj 20‐Oct‐1987 Oct‐2000 1999‐01 Russia Oct‐2013 2017‐19 (Russia) Oct‐2022
Sindhuvir 26‐Aug‐1988 Aug‐2001 1997‐99 Russia Aug‐2014 Aug‐2023
Sindhuratna 22‐Dec‐1988 Dec‐2001 2001‐03 Russia Dec‐2014 Dec‐2023
Sindhukesari 16‐Feb‐1989 Feb‐2002 1999‐01 Russia Feb‐2015 2016‐18 (Russia) Feb‐2024

Sindhukirti 04‐Jan‐1990 Jan‐2003 2006‐15 India (HSL) Jan‐2016 Jan‐2025
Sindhuvijay 08‐Mar‐1991 Mar‐2004 2005‐07 Russia Mar‐2017 Mar‐2026
Sindhushastra 19‐Jul‐2000 Jul‐2013 2013‐17 India (ND‐V) Jul‐2026 Jul‐2039
Source: IndiaNivesh Research
IN needs at least 24 Submarines to maintain Minimum Force Level but it has only 13 of them.
This year IN expects 2 of its long‐awaited Scorpene class submarine to be commissioned (INS
Kalvari is diesel electric submarine designed by DCSN France, built at Mazgaon Docks is
undergoing sea tests and is likely to be inducted during monsoons; INS Khanderi by December
or early next year). Also, INS Sindhuratna (Kilo class submarine) post fire damage in Feb‐2014
has been rewired and trials are now going on to bring it back to active service. Of the total 13,
half the boats are used in restricted manner, not at optimum level and are kept as war
reserves.
 ISRO launches 104 satellites in one go
Indian Space Research Organization (ISRO) on Feb‐15 became the first country to launch a
record 104 satellites in single rocket from its Sriharikota spaceport in A.P. The Polar Satellite
Launch Vehicle PSLV‐C37 on its 39th mission is the star of what is described as incredible step
for India's space program. Among the 104 satellites launched, many belong to international
customers (90 satellites belonged to USA, Israel, Kazakhstan, Netherlands, Switzerland,
United Arab Emirates will be launched). Main passenger was Earth‐mapping Cartosat 2 series
satellite, which weighed 714 kg.

Corporate News:
 News updates on HAL
HAL’s top management in the back‐drop of Aero Expo 2017 made few announcements while
interacting with the media. Some of these include, (1) signing MoU with CPWD, Karnataka, (2)
IPO plans, (3) finalize JV to produce Kamov 226T, and (4) soon to be signed orders.
(1) HAL announced that it has signed a MoU with Central Public Works Department (CPWD),
Karnataka for setting‐up of a green‐field Helicopter facility at Tumkur, Karnataka. HAL intends
to build a 12.5tn Indian Multi‐role Helicopter (IMRH) at 615 acres land allotted at Tumkur.
This manufacturing base houses production as well as testing facilities for 3tn Light Utility
Helicopter (LUH) and the 12.5tn IMRH.
This proposed IMRH will be powered by twin engines, equipped with Automatic Flight Control
System, state‐of‐the‐art Mission systems, Advanced Cockpit Display and Avionic Systems.
Mock model of this 24‐seater chopper with ~20,000 feet of service ceiling, 3,500kg payload
was unveiled at Aero Expo. IMRH can cater to various roles inclusive of tactical troop
transport, casualty evacuation, under slung load, combat search and rescue, anti‐surface
operations, off‐shore operations, VVIP transport and air ambulance.
(2) In another interaction with media people, HAL Chairman T Suvarna Raju highlighted that it
plans to come out with an Initial Public Offer (IPO). HAL is expected to shortly announce the
book lead managers and it would be filing DRHP by the end of this fiscal. This announcement
came in the backdrop of Rs 175bn capex planned across next 5‐6 years and some of it would
be raised through loans and remaining through an IPO. Management highlighted that capex
planned would be towards Aircraft upgrades, development of new Aircrafts & modernization
of the manufacturing units.



(3) HAL is awaiting completion of formal registration of JV with Rosoboronexport to localize
the production of Kamov 226T. This $ 1bn deal is expected to take 1‐2 months, to take‐up a
shape.
(4) HAL management expects to soon sign an order for 73 ALH worth Rs140bn and 106 HTT‐
40 to IAF worth Rs47.7bn.
Our View:
In order to understand HAL’s current order book, capex, let us have a quick glance of some of
the key projects currently under execution. HAL is executing the following projects: (1) Of the
total 222 Su‐30 MKI order pipeline, 183 have been delivered by Jan‐2017, with the remaining
ones to be delivered by 2019‐20 (at the rate of 13 Aircrafts/year), (2) Only 3 of the total 40
Tejas Mark‐1 Fighters (including 8 limited series production for Initial Operational clearance
and Final Operational clearance) are delivered to IAF. In order to ramp‐up the production
from the current 8 to 16, government sanctioned Rs 10bn. IN and IAF would invest 25% each
of the required investment and the remaining 50% would be invested by HAL. (3) Only 10 of
the total 16 Dornier 228 have been have been delivered, with balance to be delivered by
2019‐20 (at the rate of 2 Dornier Aircraft’s/year). (4) Against current o/s order of 295
Advanced Light Helicopters, HAL has delivered 136 of them (makes Rudra, the military variant
and Dhruv, the civil variant). HAL is expecting anytime Initial Operational Clearance for the
Light Combat Helicopters (LCH). DAC has cleared only supply of only 15 LCH (IAF‐10 and IA‐5).
HAL management expects to soon sign order for 73 ALH worth Rs140bn and 106 HTT
(Hindustan Turbo Trainer)‐40 to IAF worth Rs 47.7bn. HTT‐40 is being looked upon as
replacement for HPT‐32 Deepak Trainers, which have been phased out. Considering that HTT‐
40 would get IOC in 2018 and thereafter FOC, IAF expects their induction to be seen
sometime in 2019. Accordingly, IAF has already ordered 75 Swiss‐made Pilatus PC‐7 for basic
training of its rookie pilots.
HAL’s order book currently stands at ~Rs 460bn (reflecting Order book/ LTM sales ratio of
~2.7x). Current order book includes Rs 5bn of orders from Airbus for doors and other
Defense/Civil orders to Boeing. First of the 2‐phase Su‐30 MKI upgrade contract is expected to
concluded in next 90 days between Russia and India. Also, order for supply for 15 LCH, 73 ALH
and 106 HTT‐40 is expected to be signed soon. DAC also cleared order for additional 83 Light
Combat Aircraft Tejas Mark‐1A for Rs 500bn (we expect this project to be awarded in
FY2018). HAL management claims export enquiries being made for their soon to be launched
HTT‐40 Trainer jets. On a whole HAL’s strong ordering pipeline gives comfort about HAL’s
order book growth prospects.
Given that HAL has proposed the IMRH launch with an aim to replace the Mi 17 class of
helicopters, we are of view that we are at least 4‐5 years away for such scenario to be seen.
On a whole, considering the strong order book growth prospects, capex to pursue these
growth avenues, we see IPO as a good strategy to raise funds. However, we wait to see what
valuations HAL is demanding to pursue its IPO plans.
 TATA‐backed Nova Integrated signs Rs2bn deal with IN
As per the first contract concluded under Ministry of defense’s, ‘Make & Buy’ category, IN has
awarded the Rs 2bn contract to Nova Integrated Systems led JV for manufacturing 31 Surface
Surveillance Radars (SSR’s). Nova Integrated is a 100% subsidiary of Tata Advanced Systems
Ltd (TASL). Nova will indigenously manufacture these radars in collaboration with Terma,
Denmark.
IN plans to procure SSRs capable of operating on X‐band frequency, for deployment onboard
the designated ship's overall weapon and sensor suite, as well as related accessories. These
SSR’s are capable of providing target designation data to surface‐to‐surface missiles and other
fire control systems. SSR’s also can be used to detect, track small surface targets, like, mines,
swimmers and periscopes up to 12kms in all weather conditions.
Our View:
Procurement of SSR’s is part of IN's plan to modernize its fleet and these systems will also be
installed on board ships which are under construction. MoD in Jan‐2013 floated the $300mn



(~Rs 21bn) tender for procurement of 31 SSR’s and 1 SSR training simulator. As per media
reports, an IN official quoted that the selected vendor is expected to deliver at least 2 SSR’s
within 12 months of contract being awarded, while entire contract is likely to be completed
several months beyond the first year.
Nova‐Terma emerged L1 amongst 7 bidders, (1) Nova‐Terma, (2) Mahindra Defense Systems‐
Elta, (3) Tata Power SED‐Broadcast Engineering Consultants‐Indra, (4) Rosoboronexport, (5)
Data Patterns‐Reutech, (6) L&T‐EADS, and (7) BEL‐DRDO, respectively when the bids were
opened in Mar‐2016. Despite the fact that Terma is a pioneer in Scanter radar systems, like
most of the participating bidders, we remain concerned about the low bid value quoted by
Nova‐Terma.
Tata Advanced Systems has already tied‐up with (1) Terma to establish development center in
Noida for design, development of combat management systems and collaboration of the
proven Surface Surveillance Radars (SSR’s), and (2) Thales, Netherland to jointly propose
SMART L‐radar based on Active Electronic Scanned Array (AESA) for IN & IAF.
 MKU to soon start deliveries of Bulletproof Helmets & jackets
MKU Industries (Kanpur based entity with yearly sales of Rs 3bn), was recently awarded the
Rs 1.7‐1.8bn project to supply 0.158mn bulletproof Helmets (to be integrated with radio sets
to facilitate better communication). In next couple of months, first set of bulletproof helmets
would be delivered to the northern command of IA (13,000 of these would be handed over to
Maritime Commandos of IN). The entire project would be delivered in next 3 years.
Currently, these special helmets (40 layers of composite fabric are compressed to make sure
that they reduce the impact of bullets even when they are fired from close proximity of 10m)
and jackets are undergoing field trials.
Our View:
Awarding to MKU Industries is the second major announcement since Mar‐2016 when IA
signed an ‘emergency contract’ with Tata Advanced Materials Limited (TAML) to purchase
50,000 new bulletproof jackets. MKU to‐date has already supplied 60,000 bulletproof jackets
to CRPF, besides 3,500 to IN and 300 to ICG.
MKU has also developed Armour protection for (using advanced composite materials and
techniques) Aircraft and Helicopters using cutting‐edge technology by keeping the armour
weight minimum. As a result, the armour weight for Aircraft and Helicopters has been
reduced by 40% in comparison to standard armoring solutions.
We see this to be positive development from Indian forces point of view, as they are heavy,
and cause lot of discomfort, leaving the personnel at disadvantage during an encounter with
heavily‐armed terrorists. Also, it would ensure supplies at a lower cost and avoid the endless
wait for any procurement from the foreign vendors.
 Aequs to set‐up Rs 5bn facility in Goa
Aequs, an Aerospace precision engineering and manufacturing company announced that it
plans to set‐up a multi‐capability Aerospace and Defense manufacturing facility at Tuem, Goa
with an initial investment of Rs 5bn towards, physical infrastructure, plant, machinery and
equipment.
Aequs started working with HAL since 2013 on machined structural parts for various
platforms inclusive of Light Combat Aircraft, Sukhoi‐Su30MKI, ALH, among other areas.



Top Bets:
Bharat Electronics Ltd. (BEL)
Sales (Rs Mn) EBITDA (Rs Mn) PAT (Rs Mn) EPS RoE (%) P/E (x)
Company M‐Cap. OB/LTM
CMP Rating Target
Name (Rs mn) Sales (x)
FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E
BEL 1,526 340,885 BUY 1,916 4.7x 91,761 105,229 17,421 20,968 15,709 18,606 70.3 83.3 18.2 19.0 21.7 18.3

Upcoming Defense Bids:

Project Released Last Date for Final
Project details Status Bids Issued to Criterions
Cost by Quotations Selection
State‐of‐the‐art electronically
scanned array radars and electronic
Elta (Israel), Raytheon
warfare self‐protection jammer pods 2 Systems
&Northrop Grumman (US), SAAB
for forthcoming modified version of RFQ $ 1.85 bn HAL Feb‐17 Apr‐17 will be
(Sweden), Thales (France) and
the indigenously developed Light selected
Rosoboronoexport (Russia)
Combat Aircraft Mark‐1A aircraft (100
AESA Radars)
Elta, Raytheon, Northrop
Grumman, SAAB, Thales,
100 electronic‐warfare jammer pods
RFQ $ 200 mn HAL Rosoboronoexport, Indra (Spain), Feb‐17 Apr‐17
will be procured from overseas
Leonardo‐subsidiary
Finmeccanica (Italy)
15,000 night vision devices (NVDs) for
RFI IA
Rocket Launchers
5,000 night vision devices (NVDs) for
RFI IA
Medium Machine Guns
125,000 night vision devices (NVDs)
RFI IA
for Other Small handheld Arm
$ 3.2 bn
1,400 Uncooled Thermal Imager
based Driver's Night Sight (DNS) with
fusion technology for Russian‐origin
RFI IA
T‐90 tanks. Army requires range of
detection of human target at
minimum 1,000m
Elbit Systems and Elta Systems
(Israel), Saab (Sweden), Thales
83 Electronic Warfare (EW) self‐
$ 200 mn HAL (France), Elettronicas (Italy), Apr‐17
protection Suites
Raytheon (US), Indra Systems
(Spain)
Possible contest amongst these 2
Medium multi‐role Fighter (Single RFI
IAF Bidders: Saab’s Gripen E,
Engine) with transfer of Technology (equivalent)
Lockheed Martin’s F‐16 Block 70
Designs for SDR’s that can be
Alpha Design‐Elbit Systems
mounted on trucks, armored fighting RFI IA Feb‐17
amongst others
vehicles (AFVs) and helicopters
Designs for handheld and man‐pack
RFI IA Feb‐17
Software Designed Radios (SDRs)
2,958 High Mobility Multi‐purpose
RFI IA TaMo, Mahindra, Bharat Forge Feb‐17
Mini‐ Trucks
Boeing’s F/A‐18 Super Hornet,
Russian Su‐33, MiG‐29K Fulcrum
57 Multi Role Carrier Borne Fighters
RFI $12 bn IN fighter jet, Saab’s Sea Gripen (the May‐17
(MRCBF)
only aircraft to fit in to the RFI
requirements)
Source: IndiaNivesh Research, Indian Armed Forces websites



Glossary:

MoD: Ministry of Defense
IAF: Indian Air Force
IN: Indian Navy
IA: Indian Army
SPAD: Self‐propelled Air Defense System
RFI :Request for Information
RFQ: Request for Qualification
RFP: Request for Proposal
GoI: Government of India
IDDM: Indigenously Designed, Developed & Manufactured
ARDC: Aviation Research & Design Centre
ARDE: Armament Research and Development Establishment
RCI: Research Centre Imarat
DAC: Defense Acquisition Council
ARDE: Armament Research and Development Establishment
HEMRL: High Energy Materials Research Laboratory
CCS: Cabinet Committee on Security
DRDO: Defense Research & Development Organisation
MoU: Memorandum of Understanding
ICG: Indian Coast Guard
HAL: Hindustan Aeronautics Limited


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compensation from the subject company in the past 12 months
8 Has research analyst or INSL or its associates managed or co‐managed No
public offering of securities for the subject company in the past 12
months
compensation for investment banking or merchant banking or
brokerage services from the subject company in the past 12 months
compensation for products or services other than investment banking
or merchant banking or brokerage services from the subject company
in the past 12 months
compensation or other benefits from the subject company or third
party in connection with the document.
12 Has research analyst served as an officer, director or employee of the No
subject company
13 Has research analyst or INSL engaged in market making activity for the No
subject company
14 Other disclosures No

INSL, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations
expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change,
as per applicable law, without any prior notice. INSL reserves the right to make modifications and alternations to this statement, as may be required, from time to time.
Definitions of ratings
BUY. We expect this stock to deliver more than 15% returns over the next 12 months.
HOLD. We expect this stock to deliver ‐15% to +15% returns over the next 12 months.
SELL. We expect this stock to deliver <‐15% returns over the next 12 months.
Our target prices are on a 12‐month horizon basis.
Other definitions
NR = Not Rated. The investment rating and target price, if any, have been arrived at due to certain circumstances not in control of INSL
CS = Coverage Suspended. INSL has suspended coverage of this company.
UR=Under Review. Such e invest review happens when any developments have already occurred or likely to occur in target company & INSL analyst is waiting for some more information to draw
conclusion on rating/target.
NA = Not Available or Not Applicable. The information is not available for display or is not applicable.
NM = Not Meaningful. The information is not meaningful and is therefore excluded.
Research Analyst has not served as an officer, director or employee of Subject Company
One year Price history of the daily closing price of the securities covered in this note is available at www.nseindia.com and www.economictimes.indiatimes.com/markets/stocks/stock‐quotes.
(Choose name of company in the list browse companies and select 1 year in icon YTD in the price chart)

IndiaNivesh Securities Limited
Research Analyst SEBI Registration No. INH000000511
IndiaNivesh Research 601 & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai 400 007.
February 20, 2017
Tel: (022) 66188800 / Fax: (022) 66188899
e‐mail: research@indianivesh.in | Website: www.indianivesh.in

NiveshDaily - 20 February, 2017

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Sindhughosh 30‐Apr‐1986 Apr‐1999 2002‐05 Russia Apr‐2012 Apr‐2021

Sindhudhvaj 12‐Jun‐1987 Jun‐2000 2002‐05 India (ND‐V) Jun‐2013 Jun‐2022

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Sindhuvir 26‐Aug‐1988 Aug‐2001 1997‐99 Russia Aug‐2014 Aug‐2023

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