Conservative Portfolio One Pager Note Q2FY20 One Pager...Voltas Ltd. offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning,

Conservative Portfolio

One Pager Note

Q2FY20

November 27, 2019

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Page No. 2

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Conservative Portfolio - Weights & Recom.

Note: CMP and Weights are as on 25 November 2019. Please refer to Disclaimer and Disclosure on the last slide. Please note that Tata Motors is currently Under Review, but

continue to remain part of conservative portfolio.

To log in and Invest clink here : https://einvest.hdfcsec.com Post investment you can re balance portfolio as per the research team inputs.

Companies CMPTarget

PriceRecomm Weights

State Bank of India 336 392 Buy 4.3%

Bank Bees 3214 - Buy 16.8%

Voltas 702 745 Hold 1.8%

Bharat Electronics 107 145 Buy 1.4%

Larsen & Toubro 1380 1741 Buy 4.3%

Cummins India 569 748 Buy 1.5%

Carborundum Universal 319 557 Buy 2.5%

Reliance Industries 1561 1815 Buy 11.6%

Petronet LNG 265 347 Buy 3.4%

Gujarat State Petronet 219 336 Buy 3.0%

ONGC 131 174 Buy 1.8%

Thyrocare Technologies 559 737 Buy 2.4%

ITC 248 314 Buy 2.4%

Jyothy Laboratories 178 207 Buy 1.6%

Godrej Agrovet 474 640 Buy 1.9%

PHARMA HEALTHCARE

FMCG

BANKING

CAP GOODS AND ENGINEERING

Oil & Gas

Companies CMPTarget

PriceRecomm Weights

Bata India 1640 1746 Hold 6.6%

TCS 2080 2144 Hold 4.4%

Infosys 698 854 Buy 3.8%

Ultratech Cement 4112 5598 Buy 2.2%

NTPC 118 191 Buy 1.4%

KEC International 278 407 Buy 1.2%

Mahindra & Mahindra 548 701 Buy 2.3%

Tata Motors 166 UR UR 1.1%

Exide Industries 198 261 Buy 1.9%

Bajaj Auto 3196 3475 Hold 1.3%

UPL Ltd 544 719 Buy 1.4%

Grasim Industries 823 1398 Buy 2.3%

MISCELLANEOUS

FERTILIZER & CHEMICALS

AUTOMOBILE

RETAIL

TECHNOLOGY

CEMENT

POWER

https://einvest.hdfcsec.com/

Page No. 3

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Portfolio Psychographic

Note: Data based on prices as on 25 November 2019

65%

18%

8%9%

Market Cap Composition

Large Cap Mid Cap Small Cap Cash

24.3

28.7

28.0

Conservative Portfolio S&P BSE Sensex S&P BSE 200

PE Ratio

3.5

3.02.8

Conservative Portfolio S&P BSE Sensex S&P BSE 200

PB Ratio

1.4%

2.2%

2.3%

2.4%

2.5%

6.0%

6.5%

6.6%

8.2%

9.5%

11.6%

19.8%

21.1%

FERTILIZER & CHEMICAL

CEMENT

MISCELLANEOUS

PHARMA / HEALTHCARE

POWER

FMCG

AUTO

RETAIL

TECHNOLOGY

Cash

CAP GOODS & ENGINEERING

Oil & Gas

Banking

Sectoral Composition

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Quarterly Result Snapshot – Standalone

Rs in Bn Q2FY20 Q2FY19 % YoY

NII 246.0 209.1 17.7

PPOP 182.0 139.0 30.9

NIM 3.11% 2.73% 38 bps

PAT 30.1 9.4 218.7

EPS (Rs.) 3.4 1.1

Key Details

52 week H/L(Rs) 373.7/244.4

Market Cap (Rs. Bn) 2999.6

Book Value (Rs) YTD 242.8

FV (Rs) 1.0

PE (X) (TTM) 29.0

Dividend Yield (%) 0

State Bank of India CMP: Rs.336

Page No. 4

Background: State Bank of India (SBI) is India’s largest commercial bank in terms of assets, deposits, profits, branches, number of customers and employees,

enjoying the continuing faith of millions of customers across the social spectrum. Its banking activities include Personal Banking, Agricultural/Rural, NRI Services,

International Banking, Corporate Banking and Services.

Key highlights of the quarter:

SBI reported 17.7% YoY growth in net interest income (NII) and non-interest income grew by 28.2% YoY in

Q2FY20.

Overall net interest margin (NIM) grew by 38 bps YoY to 3.11% while domestic NIM grew by 34 bps YoY to

3.22%

Pre-provisioning profits (PPOP) grew by 30.9% YoY, due to expansion in margins and higher treasury gains.

PAT for the quarter grew by 218.7% YoY due to better efficiency and lower provisioning.

Deposits growth stood at 8.0% YoY and 3.0% QoQ for the quarter, with similar growth in CASA deposits, while

the Advances grew by 9.6% YoY mainly driven by retail loan growth of ~19% YoY.

Current account and Savings account (CASA) deposits, which is 43.7% of deposits, grew by ~3% QoQ.

Absolute gross non-performing assets (NPA) fell by 21.5% YoY, while net NPA fell by 36.8% YoY

While GNPA and NNPA ratio fell by 276 bps YoY and 205 bps YoY to 7.19% and 2.79%, respectively, however,

sequentially both the ratios fell marginally by 34 bps and 28 bps, respectively.

In H1FY20, NII and PPOP grew by 11.3% YoY and 21.6% YoY, respectively, while PAT stood at Rs.53.2 bn vs a

loss of Rs.39.4 bn in H1FY19.

View: We have a Buy rating on the stock with the target of Rs.392 based on PBV multiple of 2x on FY21E core

adjusted book value of Rs.179 adding Rs.34 per share value from Subsidiaries. Any revision in book value/rating

would depend on changes in the NPA profile, Capital dilution and momentum in the NPA resolution process.

PE (X)

FY19 FY20E FY21E

346.5 30.0 24.5

Adjusted BV (X)

FY19 FY20E FY21E

174 177 179

200220240260280300320340360380400

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Daily closing price for last 3 years of State Bank of India

Source: Bloomberg

Quarterly Result Snapshot

Rs. in Mn. Q2FY20 Q2FY19 % YoY

Revenue 14219 14214 0.4

EBITDA 1059 1085 (2.5)

EBITDAM 7.4% 7.6% (20) Bps

PAT 1110 1035 7.3

EPS (Rs.) 3.4 3.1

Key Details

52 week H/L(Rs) 725.5/501.7



FV (Rs) 1.0

PE (X) (TTM) 43.6

Dividend Yield (%) 0.6

Voltas CMP: Rs.702

Page No. 5

Earnings Summary

Y/E Sales Growth EBITDA Margin Net Profit EPS Growth P/E Div. Yield

31-Mar Rs Mn (%) Rs Mn (%) Rs Mn Rs % X %

18A 64,044 6.2 6,626 10.3 5,720 17.3 10.7 40.6 0.5

19A 71,241 11.2 6,117 8.6 5,161 15.6 (9.8) 45.0 0.6

20E 80,980 13.7 7,855 9.7 6,736 20.4 30.5 34.5 0.6

21E 92,451 14.2 9,892 10.7 8,214 24.8 21.9 28.3 0.6 ___________________________________________________________________________

Background: Voltas Ltd. (Voltas) is India's one of largest air conditioning company. Voltas Ltd. offers engineering solutions for a wide spectrum of industries in areas such as

heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, water management & treatment, cold chain

solutions, building management systems, and indoor air quality.


Voltas Ltd reported strong set of numbers for Q2FY20, where consolidated revenue for the quarter was largely driven by

strong revenue performance in Unitary Cooling Product (UCP) business. Overall Revenue grew by 0.4% YoY, EBITDA

declined by 2.5% YoY mainly impacted by lower margin for Electro Mechanical Projects (EMP) segment and PAT grew by

7.3% YoY led by lower interest cost and higher other income.

On the segmental front, Electro Mechanical Projects (EMP) segment revenue (57.2% of the total revenue) declined by 10.2%

YoY and EBIT margin declined to 6.9% in Q2FY20 against 8.4% in Q2FY19.

Unitary Cooling Product (UCP) segment’s revenue (37.1% to the total revenue) grew by 19.2% YoY, and on YTD basis up to

September 2019, Voltas has grown by ~44% YoY vs industry growth of ~33% YoY and has able to increase its market share

further to 24.4% on YTD basis. EBIT margin for segment improved to 8.8% in Q2FY20 vs 6.3% in Q2FY19. Channel

inventory has now normalized to 2-3 weeks given the pick up in the sales in H1FY20.

Engineering Product segment revenue grew by 10.2% YoY at Rs.803 mn where poor demand from textile sector and

weakness seen in the domestic construction and mining industry continue to impact performance, however, Mozambique

operations continue to drive the majority of revenues.

On “Voltas – Beko”, management guided that more range of consumer durable products are available via Voltas Beko

platform and company currently has more than 150 exclusive brand outlets (EBOs). On the new plant, management expects

to bridge the product gap once the direct cool refrigerator facility in Sanand becomes operational by December 2019.

In H1FY20, Revenue/EBITDA/PAT grew by 14.2%/12.9%/11.6% YoY respectively.

View: Voltas Ltd is one of India’s leading engineering solution providers. The sales for the UCP segment continued to see steady

growth even in Q2FY20 due to low channel inventory, extended summer season & delayed monsoon, easy financing schemes,

online promotional offers and competitive & unique product offering by Voltas. While, the Room Air Conditioner (RAC) market grew

by ~33% YoY during H1FY20, Voltas grew by ~44% YoY during the same period and thereby increasing its market share to 24.4%.

We believe existing dealer and channel network in the AC segment along with newly introduced exclusive Voltas showroom

exhibiting RAC and Voltas Beko products would help the company for growth into other durable goods as well. On the EMP,

management has guided that EBIT margin for the EMP segment is likely to remain steady at over 7-7.5% as slow moving orders

move out of the backlog and newer projects with better profitability come into execution. Currently, we have a Hold rating on the

stock with a target price of Rs.745 at 30x FY21E EPS of Rs.24.8. Any change in earnings/price target would depend upon the

order inflow/execution in domestic and international markets, margin improvement; scale up of the new JV, general business

momentum and rollover to the next financial year.

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Daily closing price for last 3 years of Voltas

Source: Bloomberg

Quarterly Result Snapshot - Standalone


Revenue 27427 33814 (18.9)

EBITDA 5447 8544 (36.2)

EBITDAM 20.5% 26.0% (550Bps)

PAT 3395 5713 (40.6)

EPS (Rs.) 1.39 2.34

Key Details

52 week H/L(Rs) 122.2/72.6

Market Cap (Rs. Bn) 260

Book Value (Rs) YTD 40

FV (Rs) 1.0

PE (X) (TTM) 15.6


Bharat Electronics CMP: Rs.107

Page No. 6

Earnings Summary - Consolidated



18A 104,008 20.0 20,352 19.6 14,317 5.9 (6.0) 18.2 1.8

19A 121,642 17.0 29,062 23.9 18,864 7.7 31.8 13.8 1.9

20E 128,940 6.0 27,413 21.3 18,276 7.5 (3.1) 14.3 1.9

21E 148,281 15.0 31,139 21.0 20,914 8.6 14.4 12.5 1.9 ______________________________________________________________________________

Background: Bharat Electronics Ltd. (BEL) was established at Bangalore, India, by the Government of India under the Ministry of Defence in 1954 to meet the specialised

electronic needs of the Indian defence services. Over the years, it has grown into a multi-product, multi-technology, multi-unit company servicing the needs of customers in diverse

fields in India and abroad. BEL’s segments are Radars, Military Communication, Naval Systems, Weapon Systems, Electronic Warfare, Avionics, C4I Systems, Electro-optics, Tank

Electronics, Gun up-grades, Civilian Equipment & Systems and Components amongst many others.


Bharat Electronics Ltd (BEL) reported weak set of results for Q2FY20, on the back of absence of large orders for EVM

machines, present in the base quarter of Q2FY19.

Total reported income for the quarter declined by 18.9% YoY to Rs.27.4 bn. However, adjusting for Electronic Voting Machine

(EVM) and VVPAT related execution; adjusted income would have grown by ~25-26% YoY in Q2FY20. Reported

EBITDA/PAT declined by 36.2%/40.6% YoY respectively.

Order inflows during Q2FY20 stood at Rs.70.9 bn, down by 34.1% YoY and for H1FY20 order inflow has declined by 36.7%

YoY. However, order backlog stood at Rs.561.8 bn at the end of Q2FY20, up by 14.7% YoY. This converts into book to bill

ratio of 4.6x FY19 revenue.

In H1FY20, Revenue/EBITDA/PAT declined by 11.7%/23.4%/27.5% YoY respectively.

Management in its recent commentary has guided for ~13-15% YoY growth in revenue for FY20 with flat EBITDA margin

guidance. However, given the muted performance in H1FY20, we expect full year FY20 growth to remain muted with some

decline expected in EBITDA margin. On the order inflow, management has guided for ~Rs.130-150 bn order inflow for FY20

led by orders for Akash Missile System (received in Q2FY20) and Phase II of Coastal Surveillance System.

View: BEL is a niche public sector play on defence sector with strong and readily available manufacturing base in the defense space

compared to various other players which are at planning stage of setting up the capacity. The current order book to bill ratio

continues to remain robust at ~4.6x on FY19 revenue basis and expected order inflow for Coastal Surveillance in coming quarters is

further likely to drive the order inflow and also improves the revenue visibility for the company. However, the recent announcement of

revision of PBT margins from 12.5% to 7.5% on prospective nomination based defence orders would be structural negative news for

Defence sector PSUs as it would remain a cause of concerns on the future business margins. As a result, management is looking to

increase its revenue share from non-defence but high margin orders in Space Electronics, Solar, Homeland Security, Smart Cards,

Telecom, Railways, Civil Aviation, Software as a Service, Fuel Cells, Li-ion Batteries, etc. We continue to like BEL for a long term

play on defence sector given its strong execution in the past, robust order inflow guidance and strong balance sheet strength.

However, given the muted revenue growth in H1FY20 we have revised our earnings estimates lower for FY20 and FY21. Currently,

we have a Buy rating on the stock and maintain price target of Rs.145 which is 13.5x FY21E EPS of Rs.8.6 and adding cash

per share of Rs.29. Any revision in target price would depend upon the general business momentum, changes in order inflow,

execution issues and rollover of earnings to next financial year.

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Daily closing price for last 3 years of Bharat Electron

Source: Bloomberg


Rs. in Bn. Q2FY20 Q2FY19 % YoY

Revenue 187.5 175.2 7.0

EBITDA 15.5 14.8 4.7

EBITDAM 8.3% 8.5% (20 Bps)

PAT 17.8 11.2 59.0

EPS (Rs.) 12.7 8.0

Key Details

52 week H/L(Rs) 1606.7/1202.3



FV (Rs) 2.0

PE (X) (TTM) 20.3


Larsen & Toubro CMP: Rs.1380

Page No. 7

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Background: Larsen & Toubro Ltd (L&T) is a technology, engineering, construction, manufacturing and financial services company. The Company's segments include

Infrastructure, Power, Heavy Engineering, Defence, Electrical & Automation, Hydrocarbon, IT & Technology Services, Financial Services, Developmental projects and Others,

which include realty and shipbuilding.Key highlights of the quarter:

Larsen & Toubro (L&T) reported results for Q2FY20 which were broadly in line with market expectation, where

Revenue/EBITDA/PAT grew by 7%/4.7%/59% YoY respectively. PAT was mainly driven by one time write off of Deferred Tax

assets during the quarter as company plans to move to new lower tax rate.

Standalone revenue growth was driven by Infrastructure, Heavy Engineering and Defense segment where revenue was up by

11.5% YoY, 29.7% YoY and 15.1% YoY respectively. Growth in the core Infrastructure segment was however lower than

expectation mainly due to stay on the orders from Andhra Pradesh and work related to Mumbai Coastal roads, amounting to

~Rs.160 bn together. Thus, despite adverse environment, L&T was able to drive core infra segment revenue mainly driven by

other domestic infra related orders in water, roads, metro, etc and sharp pick up seen in hydrocarbon business (up 21% YoY).

Order inflows during the quarter was up by ~20% YoY to Rs.483 bn, mainly driven by international orders (up by 111% YoY).

Order book at the end of Q2FY20 stood at Rs.3032 bn, up by 9% YoY.


The management has retained its FY20 order inflow growth guidance of 10-12% YoY and revenue growth guidance of

12-15% YoY with flat EBITDA margin guidance (on ex-Services basis).

Working capital increased to 23% in H1FY20 vs 20% in H1FY19, due to delayed payments and orders.

The management has guided for potential order pipeline of Rs.5200 bn (~Rs.8400 bn guided at the end of Q1FY20) where

~Rs.4500 bn is likely to come from core Infrastructure segment, ~Rs.200 bn for Power, ~Rs.100 bn together for Heavy

Engineering & Defence and ~Rs.400 bn for Hydrocarbon segment.

View: L&T is India's largest Engineering & Construction Company. L&T delivered good set of numbers in Q2FY20 led by execution

pick-up in domestic infrastructure and heavy engineering segment. Further, order inflow during the quarter continued to witness

steady growth, led by international order wins. L&T is exposed to several levers across business/geographic segments and has

emerged as the Engineering & Construction partner of choice in India, which provides a robust foundation to capitalize on the next

leg of investment cycle. Management guided that incremental order inflow growth would be supported by pick up in ordering activity

in the Metro and Hydrocarbon segment (specially for Refineries in international markets) apart from defence segment. We continue

to maintain a Buy rating on the stock with a revised target price of Rs.1741 (from Rs.1811 earlier), valuing Standalone

business at 22x FY21E EPS of Rs.65.8 and Subsidiary value of Rs.293/share (vs Rs.363/share earlier) based on 20%

discount on market cap. Any revision in the target price would depend upon changes in order inflow, execution, profitability in

subsidiaries, and rollover to the next financial year, management guidance and general business momentum.

Earnings Summary - Standalone


31-Mar Rs Bn (%) Rs Bn (%) Rs Bn Rs % X %

18A 745 13.3 77 10.3 50 35.3 8.7 39.1 1.0

19A 870 16.8 87 10.0 62 44.2 25.1 31.2 1.2

20E 1,000 15.0 102 10.2 76 53.9 21.8 25.6 1.3

21E 1,150 15.0 123 10.7 92 65.8 22.2 21.0 1.4

700800900

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Daily closing price for last 3 years of Larsen & Toubro

Source: Bloomberg



Revenue 13084 14869 (12.0)

EBITDA 1525 2509 (39.2)

EBITDAM 11.7% 16.9% (520bps)

PAT 1833 2116 (13.4)

EPS (Rs.) 6.6 7.6

Key Details

52 week H/L(Rs) 885/532.6



FV (Rs) 2.0

PE (X) (TTM) 22.9


Cummins India CMP: Rs.569

Page No. 8

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Background: Cummins in India, a power leader, is a group of complementary business units that design, manufacture, distribute and service engines and related

technologies, including fuel systems, air handling, filtration, emission solutions and electrical power generation systems. Cummins India Ltd., the country’s leading

manufacturer of diesel and natural gas engines is one of the eight legal entities of the Cummins Group in India. Comprising of four business units - Industrial Engine,

Power Generation, Distribution, and Automotive, Cummins India Ltd. is also the largest entity of the Cummins Group in India.


Cummins India Ltd (Cummins) reported weak set of numbers for Q2FY20, mainly impacted by subdued performance of

export business. Revenue/EBITDA/PAT declined by 12%/39.2%/13.4% YoY respectively.

The topline performance was muted as both domestic (down by 6% YoY) and export sales (down by 25% YoY) were

lower on the back of broad based slowdown witnessed in across user segments and geographies.

In terms of revenues by business segments, the domestic Powergen business revenue declined by ~4% YoY,

Industrial declined by ~11% YoY and Distribution declined by 5.7% YoY during Q2FY20.

In H1FY20, Revenue/EBITDA/PAT declined by 5.8%/34.7%/17.7% YoY respectively.

The management has further lowered its overall revenue growth guidance for FY20 from its previous guidance post

Q1FY20 earnings conference call as it expects domestic revenue to grow by 3-5% YoY (from earlier growth guidance

of 8-10% YoY) and de-growth of ~20% YoY in exports (vs earlier guidance of de-growth of 12-15% YoY) for FY20.

Management expects the slowdown in order intake is likely to play out further in near term as well, and now company is

focusing on cost control mechanism given the weak pricing and demand scenario.

View: Cummins reported muted set of numbers in Q2FY20, mainly impacted by poor performance of the exports business.

The management highlighted that muted export growth was on the back of subdued markets in Africa and South America

markets. However, management expects domestic growth to see good traction on the back of improving market share with its

key user sectors, increased content in railways and marine business which may drive industrial segment and new product

launches for CPCB III norms, BSVI and Gas Gensets. The new avenues of growth for the company are also being seen in

electrification and renewable (fuel cell, gas engines, alternate fuels) fuels space. However, the pace of growth remains a key

monitorable and given the subdued performance in H1FY20, we have tweaked our estimates lower for FY20 and FY21,

however, lower tax rate of ~25.2% is likely to drive the bottom line for the company. We continue to like the company on the

back of cash rich company and healthy ROCE and ROE of 23.6% and 17.5% respectively for FY19. Currently we have a

Buy rating on the stock with a revised price target of Rs.748 (from Rs.890 earlier) at 27x FY21E EPS of Rs.27.7. Any

changes in our earnings/price objective would hinge on the pace of economic recovery, changes in the margin profile and

general business momentum.

Earnings Summary



18A 50825 0.1 7324 14.4 6523.5 23.6 (11.2) 24.2 2.5

19A 56590 11.3 8641 15.3 7225.7 26.1 10.8 21.8 2.8

20E 54158 (4.3) 6770 12.5 6677.9 24.1 (7.6) 23.6 2.5

21E 57685 6.5 7787 13.5 7673.0 27.7 14.9 20.5 2.9

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Daily closing price for last 3 years of Cummins India

Source: Bloomberg



Revenue 6843 6596 3.7

EBITDA 1044 1083 (3.6)

EBITDAM 15.3% 16.4% (110)Bps

PAT 645 648 (0.5)

EPS (Rs.) 3.41 3.43

Key Details

52 week H/L(Rs) 415.3/266.4



FV (Rs) 1.0

PE (X) (TTM) 25.4


Carborundum Universal CMP: Rs.319

Page No. 9

Earnings Summary



18A 23678 12.1 3986 16.8 2156 11.4 17.1 28.1 0.9

19A 26889 13.6 4383 16.3 2477 13.1 14.9 24.5 0.9

20E 29153 8.4 4912 16.8 2963 15.7 19.6 20.5 0.9

21E 32728 12.3 5715 17.5 3394 18.0 14.5 17.9 0.9______________________________________________________________________________

Background: Carborundum Universal Ltd (CUMI) develops services and solutions for abrasives, electro minerals or ceramics. The Abrasives segment consists of bonded, coated,

processed cloth, polymers, power tools and coolants. The Ceramics segment consists of super refractories, industrial ceramics, anti-corrosives and bio ceramics. The Electro

minerals segment includes abrasive/refractory grains, micro grits for the photovoltaic industry and captive power generation from hydel power plant.Key highlights of the quarter:

Carborundum Universal Ltd (CUMI) reported weak set of numbers for Q2FY20, which were largely impacted by subdued

performance in Abrasive segment. Revenue during Q2FY20 grew by 3.7% YoY while EBITDA/PAT declined by 3.6%/0.5%

YoY respectively.

Abrasive segment revenue declined by 8.3% YoY to Rs.2595 mn, mainly on the back of slowdown across segment,

especially auto sector during the quarter. Further, decline in other general industries and construction sector also impacted

the performance for Abrasive segment.

Ceramic and Refractories segment revenue grew sharply by 19% YoY to Rs.1711 mn mainly led by higher growth for

industrial and wear ceramics, refractories and Metz cylinder.

Electro minerals (EMD) segment revenue grew by 8.6% YoY to Rs.2665 mn due to sharp growth in Russian and South

African subsidiary, while the domestic (Standalone) sales were down by 4.5% YoY during the quarter.

In H1FY20, Revenue grew by 4.8% YoY, while EBITDA/PAT declined by 7.5%/8.2% YoY, respectively.

Management guided that lower volume and poor mix has impacted the margin for both Abrasive and EMD segment.

However, management expects demand momentum is likely to pick up from H2FY20 and guided for improvement in margin

going ahead on the back of improving operational efficiency and lower Power cost. For full year, management has guided for

revenue of marginally short of ~Rs.30 bn and EBIT margin in similar range of H1FY20.

View: CUMI saw muted performance from the Abrasive segment during Q2FY20 on the back of poor demand scenario in the

domestic markets, especially due to slowdown in auto and auto ancl. sector. Ceramics segment continued to see strong revenue

growth in Q2FY20 as well and further traction in metz cylinders along with overall growth in industrial ceramic is likely to drive the

revenue for the ceramic segment. Lastly, in electro minerals, steady revenue growth in Russian subsidiary and plans to divest loss

making South African subsidiary along with expected price hikes and new product launches going ahead is likely to result in

operational improvement for the segment. While, the overall subdued industrial activity as indicated by poor IIP readings in the last

few months have impacted business’ like CUMI, we believe CUMI continues to remain a play on the early beneficiaries of capex

cycle revival which is expected to revive post the announcement of tax cut by the government. Given the subdued performance in

H1FY20, we have marginally tweaked our earnings estimates, however, lower tax rate assumptions are likely to drive the PAT going

ahead. We continue to have a Buy rating on the stock with a revised target price of Rs.557 (from Rs.531 earlier), which is

31x FY21E EPS of Rs.18.0. Any earnings/target price revision would depend upon a slowdown in industrial activities or new capex

announcement, market‐share loss to competitors, sharp rise in key raw material prices and adverse currency movement.

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Daily closing price for last 3 years of Carborundum universal

Source: Bloomberg



Revenue 871.4 961.7 (9.4)

EBITDA 136.7 148.9 (8.2)

EBITDAM 15.7% 15.5% 20 Bps

PAT 97 88.6 9.5

EPS (Rs.) 15.3 13.9

Key Details

52 week H/L(Rs) 1571.9/1055.4



FV (Rs) 10.0

PE (X) (TTM) 23.6


Reliance Industries CMP: Rs.1561

Page No. 10




18A 2,900 9.8 517 17.8 336 53.0 7.0 29.4 0.4

19A 3,710 27.9 583 15.7 352 55.5 4.6 28.1 0.4

20E 3,755 1.2 638 17.0 392 61.9 11.5 25.2 0.4

21E 4,303 14.6 753 17.5 466 73.5 18.8 21.2 0.4______________________________________________________________________________

Background: Reliance Industries Ltd. (RIL) is a private sector enterprise, with business in the energy and materials value chain. The Company operates in three segments:

petrochemicals, refining and oil & gas. The petrochemicals segment includes production and marketing operations of petrochemical products. Refining segment includes production

and marketing operations of the petroleum products. Oil and gas segment includes exploration, development & production of crude oil and natural gas.Key highlights of the quarter:

Reliance Industries Ltd (RIL) reported numbers for Q2FY20 which were marginally higher than market expectations with

steady performance seen in both Petrochemical and Refining business.

In H1FY20, Revenue/EBITDA declined by 6.4%/9.1% YoY respectively and PAT grew by 6%YoY.

The Refining division’s revenue (~67% of standalone revenue) declined by 6.1% YoY and EBIT margin for the segment

improved by 100 bps YoY to 7.3%. GRM during Q2FY20 stood at USD 9.4/bbl vs USD 9.5/bbl during Q2FY19 and USD

8.1/bbl in Q1FY20.

The Petrochemical division’s revenue (~33% of standalone revenue) was down by 13% YoY and EBIT margin was up by 490

bps YoY to 23.4%, driven by lower gas prices.

The Oil & Gas division’s revenue (~0.4% of total revenue) declined by 39% YoY and EBIT margin came in at 50.6% in

Q2FY20 against negative EBIT margin of 25.3% in Q2FY19. Management expects first round of gas production from its under

development KG-D6 basin to start from mid of 2020.

Reliance Jio (RJio) standalone revenue grew by 33.7% YoY and EBIDTA grew by 44.6% YoY with EBITDA margin of 41.8%

in Q2FY20 vs 40.1% in Q1FY20. RJio’s subscriber base at the end of Q2FY20 stood at 355.2 mn, with net additions of 23.9

mn subscriber during Q2FY20. ARPU stood at Rs.120 vs Rs.122 in Q1FY20.

Reliance retail business revenue grew by 27% YoY and EBIDTA grew by 66.8% YoY with EBITDA margin of 5.6% in Q2FY20

vs 4.3% in Q2FY19.

View: RIL continues to be on track to improve the profitability on the back of improved performance for the Petrochemical business

with improvement seen in Refining business also, mainly backed by improving GRM on QoQ basis. Strong ramp up in RJIO paid

subscriber base during last few quarters along with strong operating margin for the segment has raised the revenue visibility for the

telecom venture going ahead. RIL’s plans to sell ~20% stake in Oil to Chemical segment, works in favour of the company in reducing

the overall debt. Also, Refining margins have seen some positive upmove in Q2FY20 on QoQ basis and we believe revised IMO

regulation from 1 January 2020 is also likely to improve demand for Middle distillates like diesel and thereby likely to further benefit

complex refinery company like Reliance Industries. We have tweaked our estimates to incorporate the lower crude oil prices. We

maintain a Buy rating on the stock with a target price of Rs.1815, where Standalone business is valued at 15x FY21E EPS of

Rs.73.5 adding to Rs.1103/share and balance value accruing from RJIO (Rs.397/share), Shale Gas (Rs.69/share) and Retail

Business (Rs.515/share) and deducting Rs.269/share of net debt. Any changes in the estimates/target price would depend upon

trend in crude price, currency movement, gas price & GRM and changes in capex and general business.

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Daily closing price for last 3 years of Reliance Inds.

Source: Bloomberg



Revenue 93.6 107.5 (12.9)

EBITDA 11.6 8.8 31.3

EBITDAM 12.4% 8.2% 420 Bps

PAT 11.8 5.6 108.8

EPS (Rs.) 7.8 3.8

Key Details

52 week H/L(Rs) 302/203.4



FV (Rs) 10.0

PE (X) (TTM) 14.4


Petronet LNG CMP: Rs.265

Page No. 11

Earnings Summary



18A 306 24.3 33 10.8 20.8 13.9 21.8 19.1 0.9

19A 384 25.5 33 8.6 21.6 14.4 3.7 18.4 3.8

20E 349 -9.0 43 12.3 27.2 18.1 26.1 14.6 3.8

21E 390 11.6 49 12.7 32.5 21.7 19.7 12.2 3.8______________________________________________________________________________


Petronet LNG Ltd (PLNG) reported strong set of results for Q2FY20 which were above the market expectations. During

Q2FY20, while revenue declined by 12.9% YoY mainly due to lower gas prices, EBITDA/PAT grew by 31.3%/108.8%

YoY respectively. Higher PAT growth was mainly on account of change in tax rates.

Company has declared a special dividend of Rs.5.5 per share.

Dahej volumes during Q2FY20 grew by 13.7% YoY and 10.6% QoQ to 240 trillion British thermal unit (tbtu) and Kochi

volume grew to 10 tbtu from 6 tbtu in Q2FY19, up by 66% YoY. Strong volume growth in Dahej was mainly on account

of increase in the name plate capacity from 15 MMTPA to 17.5 MMTPA towards the end of Q1FY20.

Dahej terminal utilization level stood at 108% (on higher capacity) for Q2FY20 vs 113% in Q1FY20. Utilization for Kochi

terminal stood at 16% in Q2FY20 vs 14% in Q1FY20.

In H1FY20, Revenue declined by 9.7% YoY, however, EBITDA/PAT grew by 20.1%/50.9% YoY respectively.

Management guided that LNG demand is expected to sustain going ahead as well given the increasing demand from

Power and City Gas Distribution segment. It further highlighted that the construction work of the Kochi-Mangalore

pipeline is expected to be completed by Feb-Mar 2020 vs earlier target of October 2019.

View: PLNG remains a structural story of India’s increasing gas demand from key users like power stations, fertilizers

companies, refineries and petrochemical companies, city gas distribution for compressed natural gas (CNG), domestic

purpose usage and steel manufacturers. While the Kochi terminal is currently underutilized, a slight uptick in the utilization

levels for Kochi terminal post commissioning of Kochi-Mangalore pipeline by Mar 2020, would result in sharp rise in the

earnings for the company in FY21 and beyond. Moreover, international expansion plans given the higher free cash flow

generation capability of the company is also likely to work in favour of PLNG with incremental growth coming from

international operations in the long term. We have revised our earnings for FY20 and FY21 marginally upward given the

strong performance seen in H1FY20 and also provided for lower tax rate of 25.2% going ahead. Currently, we maintain our

Buy rating on the stock with a revised target price of Rs.347 (from Rs.316 earlier) at 16x FY21E EPS of Rs.21.7. Any

earnings/target price revision would depend upon the fluctuation in LNG prices, any disruption from the upcoming competition;

scale up of existing terminal, any decision by government on re-gas tariffs and general changes in the business scenario.

Background: Petronet LNG Ltd (PLNG) is engaged in sale of re-gasified liquefied natural gas (RLNG). The Company's terminals include Dahej LNG terminal, Kochi LNG

terminal and solid cargo port. The company's Dahej LNG terminal is LNG receiving and regasification terminal with a nameplate capacity of approximately 17.5 mn metric

tons per annum (MMTPA) and Kochi LNG terminal has nameplate capacity of approximately 5 MMTPA, located at Kochi, Kerala..

100120140160180200220240260280300

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Daily closing price for last 3 years of Petronet LNG

Source: Bloomberg



Revenue 6354 5983 6.2

EBITDA 4371 5163 (15.3)

EBITDAM 68.8% 86.3% (1750)Bps

PAT 4549 3234 40.7

EPS (Rs.) 8.1 5.7

Key Details

52 week H/L(Rs) 302/203



FV (Rs) 10.0

PE (X) (TTM) 15.7


GSPL CMP: Rs.219

Page No. 12

Earnings Summary



18A 13318 29.6 11478 86.2 6685 11.9 34.6 18.5 0.7

19A 18772 41.0 15426 82.2 7952 14.1 18.8 15.5 0.8

20E 20238 7.8 16595 82.0 10360 18.4 30.4 11.9 0.9

21E 21687 7.2 17783 82.0 11389 20.2 9.9 10.8 1.0______________________________________________________________________________

Key investment rationale:

Volume growth to remain steady led by upcoming LNG terminals

Cheap gas availability to boost demand

Outlook for Gujarat Gas continues to remain strong

Strong Free Cash Flow generation capability of GSPL to help reduce overall debt

Strong financials and reasonable valuations offer a much protected downside risk

View: GSPL remains a structural story of India’s increasing gas demand due to increasing demand from key users like power,

fertilizers, refineries and petrochemical companies, city gas distribution for compressed natural gas (CNG) and domestic

purpose usage and industrial players. India continues to be significantly short of natural gas supply against the demand, with

the gap between the potential gas demand and supply increasing significantly over the last few years. Moreover, given the

lower LNG prices in the recent past, we believe demand from the price sensitive players (largely power/Fertilizer/Industrials) is

also expected to rise going ahead. Thus, GSPL is likely to benefit as the primary play on increasing usage of natural gas in

the country. GSPLs utility business of transmission of gas gives us comfort on steady revenue growth expectation in the

backdrop of rising gas demand in the country and thereby increasing demand for transmission lines. Similarly, investments in

CGD companies (Gujarat Gas and Sabarmati Gas) will enable GSPL to earn steady cash flow on the back of strong growth

witnessed in this business. We believe, strong Free Cash flow generation capability, reducing debt profile, investments in high

growth CGD companies coupled with strong ROCEs (17.5% in FY19) and ROE (13.8% in FY19) profile would drive

profitability for the company going ahead. We have a BUY rating on the stock with the target price of Rs.336 based on

SoTP method where we assign a value of Rs.243/share for GSPL Transmission business using DCF valuation

method and adding market value of Gujarat Gas Ltd (listed entity) having ~54.16% stake after giving 30% holding

company discount of Rs.91/share and balance value accruing from Sabarmati Gas based on 4x book value as on

FY19. Any earning/target price revision would depend on the changes in volume growth trajectory and changes in tariff by

PNGRB, improvement in market share and changes in general business momentum.

Background: Gujarat State Petronet Ltd (GSPL) is a natural gas infrastructure and transmission company engaged in gas transportation business and operates 2621 kms

of pipeline in the state of Gujarat. It serves various industries, such as power, fertilizer, industries, refineries & petrochemical, CGD, etc. It also owns stake in CGD

companies like Gujarat Gas Ltd and Sabarmati Gas Ltd.

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Daily closing price for last 3 years of Gujarat State Petronet

Source: Bloomberg



Revenue 244.9 279.9 (12.5)

EBITDA 132.9 157.9 (15.8)

EBITDAM 54.3% 56.4% (210)Bps

PAT 62.6 82.6 (24.2)

EPS (Rs.) 4.9 6.4

Key Details

52 week H/L(Rs) 179/115.6



FV (Rs) 5.0

PE (X) (TTM) 6.2


ONGC CMP: Rs.131

Page No. 13




18A 850 9.1 440 51.8 199 15.5 11.4 8.7 5.5

19A 1,097 29.0 595 54.2 267 21.2 36.6 6.4 5.6

20E 1,042 (5.0) 565 54.2 251 20.0 (6.0) 6.8 5.6

21E 1,125 8.0 618 54.9 277 22.0 10.3 6.1 5.6______________________________________________________________________________

Background: Oil and Natural Gas Corporation Ltd. (ONGC) is an oil exploration and production company. The Company is the producer of crude oil and natural gas in

India. The company has organized into the geographical and business segments. The geographical segment includes operations in two categories: In India, which include

onshore and offshore, and outside India. The business segment includes exploration & production and refining activities.


ONGC Ltd reported weak set of results for Q2FY20 mainly impacted by lower realization and decline in crude oil & gas

production. Revenue/EBITDA/PAT for quarter declined by 12.5%/15.8%/24.2% YoY, respectively.

The total crude oil production stood at 5.84 mn metric ton (MMT), down by 3.9% YoY and 0.4% on QoQ basis. Net

Brent crude realization for the quarter came in at USD 60.3/bbl, down by 17.4% YoY. In INR terms, it came in at

Rs.4244/bbl, down by 17.1% YoY.

The gas production at 6.26 bn cubic meter (BCM) was down by 1.6% on YoY and by 2.4% on QoQ basis.

In H1FY20, Revenue/EBITDA/PAT declined by 7.5%/6.9%/15.6% YoY, respectively.

The management has revised its oil production target to 23.7-23.9 MT for FY20 from 25.34 MT earlier and gas

production target to ~25 BCM from 28.32 BCM earlier owing to subdued production growth in H1FY20.

Management has also lowered its production guidance from the KG basin to 32-34 BCM by FY24 from earlier guidance

of 38-40 BCM highlighting execution challenges from this large asset.

View: ONGC is in the midst of developing its KG Basin asset, one of its largest single upstream assets with peak production

rate of ~16.56 mmscmd of gas and ~78000 bbl per day of oil. On the ONGC operational front, uptick expected in the gas

production going ahead led by several ongoing projects is likely to drive growth for the company. ONGC’s large size in the oil

& gas space, strong balance sheet, steady cash flows and consistent dividend payment track record gives us the comfort. We

believe, given the fuel subsidy provision of ~Rs.375 bn for FY20 Budgetary Estimates which seems to be adequate to

manage under-recoveries on domestic LPG and PDS kerosene if oil prices continue to remain at around USD60-70/bbl levels.

This will again improve a case for re-rating for the stock given the lower to nil probability of the subsidiary burden. However,

despite realizing market price for oil in the absence of any subsidy sharing, news flow around stake sale from government to

achieve its disinvestment targets remains a key overhang on the stock. However, given the subdued performance in H1FY20,

we have revised our earnings estimates for the company accordingly. Currently, we maintain a Buy rating on the stock

with a revised price target of Rs.174 (from Rs.184 earlier) which is 6x FY21E EPS of Rs.22.0 and balance value

accruing from ONGC Videsh Ltd and other listed investment. Any revision in the earnings/target price would depend upon

change in the international crude oil prices, subsidy share, general business momentum and rollover to next financial year.

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Daily closing price for last 3 years of O N G C

Source: Bloomberg

______________________________________________________________________________

Quarterly Result Snapshot – Consolidated

Rs in Mn Q2FY20 Q2FY19 % YoY

Revenue 1162 1039 11.9

EBITDA 522 430 21.2

EBITDAM 44.9% 41.4% 345 bps

PAT 351 253 38.8

EPS (Rs.) 6.6 4.7

Key Details

52 week H/L(Rs) 604.6/406.7



FV (Rs) 10.0

PE (X) (TTM) 29.8


Thyrocare Technologies CMP: Rs.559

Page No. 14

Earnings Summary – Consolidated



18A 3563 17.1 1447 40.6 955 17.4 32.7 32.2 1.8

19A 4029 13.1 1542 38.3 845 15.8 (8.7) 35.3 3.5

20E 4576 13.6 1693 37.0 901 17.1 7.8 32.7 3.5

21E 5281 15.4 1970 37.3 1296 24.6 43.8 22.8 3.5

Background: Thyrocare Technologies Ltd (Thyrocare) is India's first fully automated diagnostic laboratory with a focus on providing quality at affordable costs to

laboratories and hospitals in India and other countries. Thyrocare operates with a Centralized Processing Laboratory (CPL) in Mumbai - India for esoteric tests;

and Regional Processing Laboratory (RPL) in major metro cities of India and other parts of Asia.


Thyrocare reported decent set of numbers for Q2FY20. Revenue/EBITDA/PAT grew by 11.9/21.2/38.8% YoY

respectively.

Consolidated revenue growth of 11.9% YoY was driven by 12.4% YoY growth in revenue from diagnostic

services, while revenue in imaging services (Nueclear Healthcare) grew marginally by 5.1% YoY.

In diagnostic business, revenue from B2C segment saw strong 17% YoY growth while B2B segment revenue

grew by 8.6% YoY. Wellness segment reported 14% YoY growth and Sickness segment grew by 7% YoY.

Revenue growth in Imaging business was subdued as two of its franchise based centres were not functioning

due to non compliances from franchise end.

Sharp fall in other expenses as a percentage of revenue helped company to report 345 bps YoY increase in

EBITDA margin during the quarter.

In H1FY20, Revenue/EBITDA/PAT grew by 12.4/16.1/28.4% YoY respectively.

View: Thyrocare has reported number inline with market as well as management expectation amid strong competition

witnessed from PE-backed diagnostic centers in B2B segment. We continue to remain long-term positive on the stock

given the current structural drivers like low spending on Preventive and Wellness healthcare and rising urbanization,

sedentary lifestyle, and peaking stress levels leading to lifestyle diseases such as cancer, obesity, heart disease,

diabetes, among others. With bulk of the market in the pathology segment being unorganised, there is significant

headroom for the organised sector to grow although the management expects it at a slower pace. Thyrocare being a

pan India player with the clear focus on expanding its network in diagnostic, it is well placed to grab this opportunity.

Moreover, strong brand, lower pricing model, expanding the number of diagnostic tests centers and expanding the

platforms also puts Thyrocare in a favorable position. Thyrocare’s well established brand image, huge opportunity size,

robust return ratios and cash rich balance sheet supports our long term view. We have tweaked our growth estimate for

FY20 and FY21 based on H1FY20 performance and also incorporated lower tax provisions. We maintain our Buy

rating on the stock with the revised target price of Rs.737 (earlier Rs.680) based on a PE multiple of 30x FY21E

EPS of Rs.24.6. Any earning revision would depend on the segmental performance, change in regulation, delay in

expansion plans, monetization of imaging business and changes in general business momentum.

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Daily closing price for last 3 years of Thyrocare Tech

Source: Bloomberg

______________________________________________________________________________



Revenue 118.7 112.7 5.3

EBITDA 45.6 42.1 8.5

EBITDAM 38.4% 37.3% 112 bps

PAT 40.2 29.5 36.2

EPS (Rs.) 3.3 2.4

Key Details

52 week H/L(Rs) 310/234.1



FV (Rs) 1.0

PE (X) (TTM) 21.6


ITC CMP: Rs.248

Page No. 15

Earnings Summary – Standalone



18A 406 1.3 155 38.3 112 9.2 9.5 26.9 2.1

19A 450 10.8 173 38.5 125 10.2 10.6 24.4 2.3

20E 481 6.8 186 38.7 145 11.8 16.5 20.9 2.3

21E 529 10.2 206 39.0 160 13.1 10.3 19.0 2.3

Background: ITC Ltd. (ITC) is engaged in fast moving consumer goods (FMCG), hotels, paperboards and specialty papers, packaging, agri-business, and

information technology. ITC has established vital brands like Aashirvaad, Sunfeast, Fabelle, Sunbean, Dark Fantasy, Mom's Magic Bingo!, Yippee!, Candyman,

mint-o, Kitchens of India, Farmland, B Natural, ITC MasterChef in the Branded Foods space; Essenza Di Wills, Fiama, Vivel, Engage, Savlon, Charmis.


ITC reported decent set of numbers for Q2FY20 which were in-line with market expectation.

Revenue/EBITDA/PAT grew by 5.3/8.5/36.2% YoY, respectively. Strong growth in PAT was due to lower tax rate.

On Segmental breakup, revenue from Cigarette business grew by 6.0% YoY, revenue from FMCG business

(non-Cigarette) grew by 4.0% YoY, revenue from Hotels business grew by 17.7% YoY, revenue from Agri-

business grew by 19.3% YoY and revenue from Paperboards, Paper & Packaging business grew by 9.9% YoY.

In H1FY20, Revenue/EBITDA/PAT grew by 5.5%/8.6%/24.7% YoY, respectively.

The Company continued to see positive volume growth for sixth consecutive quarter in the cigarette segment,

which was in-line with market expectations, though at lower pace owing to subdued demand environment.

ITC’s non-cigarette segment also continued to see double digit revenue and EBIT growth for fifth consecutive

quarter with 180 bps sequential improvement in non-cigarette EBIT margin driven by Agri and Paper business.

View: ITC continued to report positive volume growth for sixth consecutive quarter coupled with margin improvement for

third consecutive quarter on a sequential basis in Cigarette segment. Similarly, improvement in Non-cigarette segment’s

margin also alleviates some of the concerns on margin front. We believe cigarette business may continue to witness

improvement going ahead given the stability on the taxation and expected pick-up in rural demand due to above-normal

monsoon. While, ITC has been consolidating its leadership position in the Cigarette segment and continuing to improve

its standing in key competitive markets across the country, which should help Cigarette segment to perform well over

the longer term, any large upward revision in GST rate for Cigarette remains a key risk in near term. In its non-cigarette

business, ITC continued to enter into new categories in the FMCG business along with entry into new markets in order

to bring the incremental growth. We maintain our positive stance on ITC given the long-term positive benefits of GST,

visible improvement in both Cigarette and non-cigarette business and steep valuation discount as compared to its

peers. While we have revised our numbers for FY20 and FY21 to incorporate H1 performance and changes in tax rates,

we maintain our Buy rating on the stock with revised target price of Rs.314 (earlier Rs.310) at 24x FY21E EPS of

Rs.13.1. Any earning/rating revision would depend on the performance of FMCG business, any regulatory changes in

Cigarette business and in general business momentum.

150170190210230250270290310330350

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Daily closing price for last 3 years of ITC

Source: Bloomberg

______________________________________________________________________________



Revenue 4749 4369 8.7

EBITDA 787 711 10.7

EBITDAM 16.6% 16.3% 30 bps

PAT 557 481 15.8

EPS (Rs.) 1.5 1.3

Key Details

52 week H/L(Rs) 218/138.2



FV (Rs) 1.0

PE (X) (TTM) 29.8


Jyothy Labs CMP: Rs.178

Page No. 16




18A 16724 (0.6) 2575 15.4 1789 4.9 (12.4) 36.2 0.6

19A 18136 8.4 2811 15.5 1976 5.4 10.5 32.8 1.7

20E 19907 9.8 3145 15.8 2115 5.8 7.0 30.6 1.7

21E 22497 13.0 3644 16.2 2515 6.9 18.9 25.7 1.7

Background: Jyothy Labs Ltd. (JYL), a fast moving consumer goods (FMCG) company is principally engaged in manufacturing and marketing of fabric whiteners,

soaps, detergents, mosquito repellents, scrubber, bodycare and incense sticks. Jyothy has some of the major brands in the FMCG industry under its product

portfolio offering including Ujala, Maxo, Exo, Henko, Prill, Margo and Neem.


JYL reported good set of numbers (consolidated) for Q2FY20, which were better than market expectations.

Revenue/EBITDA/PAT grew by 8.7%/10.7%/15.8% YoY, respectively, in Q2FY20.

On the segmental basis, revenues from Personal Care segment (Cont.13%) grew by 10.1% YoY, revenues from

Fabric Care segment (Cont.42%) grew by 9.2% YoY and revenues from Dishwashing segment (Cont.32%) grew

by 5.0% YoY, however, revenues from Household Insecticides segment (Cont.8%) fell by 9.2% YoY in Q2FY20.


The management has highlighted that the demand environment has impacted by overall slowdown. However, it is

likely to improve going ahead as consumer sentiments are improving ahead of festive season and rural demand

owing to good monsoon. Benign input cost have helped in improving EBITDA margin.

The management highlighted that the company has gained market share in some of the brands like Ujala

Supreme and Maxo Coil, T-Shine (toilet cleaner in Kerala).

The management has maintained its revenue growth guidance to 10-12% YoY for FY20 and also expects

sustainable margin to be at 15.5-16%.

View: JYL’s is witnessing gradual recovery with most of the segment seeing sequential improvement in Q2FY20. The

management also maintained its revenue and EBITDA margin guidance with the expectation of recovery in H2 owing to

improvement in consumer sentiment. Moreover, company is also launching low price pouch in liquid dishwash segment

which is growing faster compared to bars. The management is also hopeful of recovery in household insecticide

segment with government taking measure to curb illegal agarbatti. The management maintained that it would continue

to focus on innovation, roll-out of existing products into newer geographies and launch of variants in existing brands.

Given the subdued performance in H1FY20 and change in accounting norms related to lease accounting, we have

revised our numbers downwards for FY20 and FY21. However, considering improvement in volume growth in Q2 and

further improvement expected in H2, we maintain our Buy rating on the stock with the revised target price of

Rs.207 (earlier Rs.228) at 30x PE multiple on FY21E EPS of Rs.6.9. Any revision in earning/rating would depend on

the performance of its power brands, improvement in EBITDA margin and changes in general business momentum.

100

120

140

160

180

200

220

240

260

No

v-16

Jan-

17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-17

Jan-

18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-18

Jan-

19

Mar

-19

May

-19

Jul-

19

Sep

-19

No

v-19

Daily closing price for last 3 years of Jyothy Lab.

Source: Bloomberg

______________________________________________________________________________



Revenue 18511 15884 16.5

EBITDA 1197 1407 (14.9)

EBITDAM 6.5% 8.9% (239) bps

PAT 1040 942 10.4

EPS (Rs.) 5.4 4.9

Key Details

52 week H/L(Rs) 564.6/421.7



FV (Rs) 10.0

PE (X) (TTM) 35.2


Godrej Agrovet CMP: Rs.474

Page No. 17




18A 51855 5.6 4430 8.5 2510 13.1 3.3 36.3 0.9

19A 58707 13.2 4558 7.8 3493 18.2 39.2 26.1 0.9

20E 67924 15.7 4958 7.3 3027 15.8 (13.3) 30.1 0.9

21E 80097 17.9 6328 7.9 4095 21.3 35.3 22.2 0.9

Background: Godrej Agrovet Limited (GAVL) is a diversified, Research & Development focused agri- business company. GAVL holds leading market positions in

the different businesses in which it operates - Animal Feed, Crop Protection, Oil Palm, Dairy and Poultry and Processed Foods. Apart from these businesses,

GAVL has a joint venture with the ACI group of Bangladesh for animal feed business in Bangladesh.Key highlights of the quarter:

GAVL has seen mixed performance during Q2FY20. Revenue grew by 16.5% YoY, EBITDA fell by 14.9% YoY

and PAT grew by 10.4% YoY.

On the segmental basis, revenues from Animal Feed division (AFD) grew by 31.9% YoY, revenues from Crop

Protection division (CPD) grew by 7.0% YoY and revenues from Dairy division grew by 2.2% YoY, however,

revenues from Vegetable Oil division (VOD) fell by 11.2% YoY in Q2FY20.

AFD continued to see strong volume growth momentum. However, sharp decline in crude palm oil and lower oil

content in fresh fruits impacted the VOD performance. CPD was impacted by poor realization, increase in input

costs and deferral of export orders.

The management highlighted that it would be focusing on increasing market share across animal feed categories

along with maintaining profitability. Similarly, it would be emphasizing on increasing the area under coverage and

on improving yields in VOD. In dairy division, focus continued to remain on strengthening the ‘Jersey’ brand.

In CPD, GAVL plans to launch two new products to improve the product portfolio in the Fungicide and Insecticide

segments. While ban of Propiconazole in Europe impacted Q2FY20 performance, management expects some

recovery to take place in H2FY20 as 90-95% of capacity has already been booked for sales.

For H1FY20, revenue grew by 15.7% YoY, EBITDA fell by 6.6% YoY and PAT grew by 3.2% YoY.

View: GAVL continued to focus on improving its market share across all its business verticals, which are

underpenetrated and are largely catered by unorganized players. GAVL is also working on strategy to increase its

revenue and profitability by extending its product pipeline by introducing innovative and value added products and

expanding its geographical presence across its business divisions. GAVL is also working on improving its balance sheet

performance, which was visible in FY19. We have a long-term positive view on the stock considering the strong

parentage, leadership position in various divisions, expected improvement in margins and return ratios and strong &

robust balance sheet. We have revised our earnings estimates for FY20 & FY21 based on H1FY20 performance and

benefits of lower taxation and maintain our Buy rating on the stock with the target price of Rs.640 based on a PE

multiple of 30x FY21E EPS of Rs.21.3. Any earning revision would depend on the performance of its sub-divisions,

improvement in market share and changes in general business momentum.

400

450

500

550

600

650

700

750

Oct

-17

Oct

-17

No

v-17

Dec

-17

Dec

-17

Jan-

18

Feb

-18

Feb

-18

Mar

-18

Ap

r-18

Ap

r-18

May

-18

Jun

-18

Jun

-18

Jul-

18A

ug-

18A

ug-

18Se

p-1

8O

ct-1

8O

ct-1

8N

ov-

18D

ec-1

8D

ec-1

8Ja

n-1

9Fe

b-1

9Fe

b-1

9M

ar-1

9A

pr-

19A

pr-

19M

ay-1

9Ju

n-1

9Ju

n-1

9Ju

l-19

Au

g-19

Au

g-19

Sep

-19

Sep

-19

Oct

-19

No

v-19

Daily closing price from the date of listing of Godrej Agrovet

Source: Bloomberg



Revenue 7220 6731 7.3

EBITDA 977 873 11.9

EBITDAM 13.5% 13% 50 Bps

PAT 710 556 27.6

EPS (Rs.) 5.5 4.3

Key Details

52 week H/L(Rs) 1815/943.8



FV (Rs) 5.0

PE (X) (TTM) 57.9


Bata India CMP: Rs.1640

Page No. 18

Earnings Summary



18A 26293 6.6 3,538 13.5 2,236 17.4 23.9 98.3 0.2

19A 29284 11.4 4773 16.3 3,297 25.7 47.5 66.7 0.2

20E 33455 14.2 5855 17.5 4,390 34.2 33.2 50.1 0.4

21E 37877 13.2 7879 20.8 5,906 46.0 34.5 37.2 0.4______________________________________________________________________________

Background: Bata India Ltd. (Bata) enjoys strong brand equity in India and is the market leader with ~25% share in the organized footwear segment. It has a strong

distribution network of 1,415 (as on 31 March 2019) stores across cities. Company has five state of art manufacturing units with the total capacity to produce more than 21

mn pieces pairs per annum and sales of over 50 mn pairs of footwear. In terms of sales of the shoes, men’s shoes contribute 50%-55% to sales while women and kid

footwear account for 30%-32% and 7%-8%, respectively.


Bata reported results for Q2FY20 which were broadly inline with market expectations. Revenue/EBITDA/PAT for the

quarter grew by 7.3%/11.9%/27.6% YoY respectively.

The growth in the net sales for the quarter was mainly driven by steady same store sales growth (~6.5% YoY) during

the quarter.

Gross margin continued to improve in Q2FY20 as well to 56.4% against 55.8% in Q2FY19, on the back of a better

product mix leading to higher Average Selling Price (ASP).


Management also highlighted that company has aggressively expanded its footprint through franchising model along

with a focus on the e-commerce led omni-channel platform, making Bata accessible across the length and breadth of

the country.

Further, Bata’s continuous focus on innovation, New Arrivals Every Friday initiative, Flagship stores having Experience

Centers and campaigns inviting younger consumers has helped it to re-position itself as a younger and vibrant retail

brand.

View: Bata continued to improve its profitability in Q2FY20 as well on the back of improved product mix given the new

launches in the premium segment and portfolio refreshes across categories. Company’s plan to introduce new brands which

are more casual and stylish to attract the youth has worked for the company in last few years. Thus, we believe that with

these efforts Bata is moving in right direction for transforming itself from conventional footwear play to fashion footwear play

by shifting its focus towards the fashion conscious youth, working women and children through the introduction of latest and

trendier styles of footwear. Moreover, with the rationalization of size for new stores along with the mindful upgradation of its

stores to provide world class shopping experience to the customers, we believe Bata is moving in the right direction of

generating higher same store sales going ahead. We have revised our numbers for FY20 and FY21 to incorporate the new

lower tax rate of 25.2%. Currently, we have a Hold rating on the stock with a revised price target of Rs.1746 (from

Rs.1540 earlier) which is 38x FY21E EPS of Rs.46. Any earnings/target price revision would depend upon the change in the

product mix, any disruption in the competition, scale up on e-comm platform and general changes in the business.

350

550

750

950

1150

1350

1550

1750

1950

No

v-16

Jan-

17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-17

Jan-

18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-18

Jan-

19

Mar

-19

May

-19

Jul-

19

Sep

-19

No

v-19

Daily closing price for last 3 years of Bata India

Source: Bloomberg


Rs. in Bn. Q2FY20 Q1FY20 % QoQ

Revenue 389.7 381.7 2.1

EBITDA 102.3 100.4 1.9

EBITDAM 26.2% 26.3% (10) Bps

PAT 80.4 81.3 (1.1)

EPS (Rs.) 21.4 21.7

Key Details

52 week H/L(Rs) 2296/1787



FV (Rs) 1.0

PE (X) (TTM) 24.1


TCS CMP: Rs.2080

Page No. 19

Earnings Summary



18A 1231 4.4 325 26.4 258 67.5 (1.8) 30.8 1.2

19A 1465 19.0 397 27.1 317 84.5 22.7 24.6 1.4

20E 1589 8.5 429 27.0 339 90.4 7.0 23.0 3.1

21E 1732 9.0 468 27.0 370 98.7 9.2 21.1 3.1______________________________________________________________________________

Background: Tata Consultancy Services Ltd. (TCS) is an information technology (IT) services, consulting and business solutions organization. TCS offers a consulting-

led, integrated portfolio of IT, Business Process Services (BPS), infrastructure, engineering and assurance services.


Tata Consultancy Services Ltd (TCS) reported weak set of numbers for Q2FY20, mainly impacted by lower margins.

Revenue/Operating Profit/PAT grew by 8.5%/4.7%/6.1% YoY respectively in H1FY20.

TCS declared a special dividend of Rs.40 over and above an interim dividend of Rs.5 per share (Total Rs.45)

In USD terms, revenue grew by 0.6% QoQ to USD 5.52 bn and 1.5% QoQ in constant currency terms in Q2FY20.

In terms of revenues by geographical segments, revenues from North America business (50.6% of total revenue) rose

by 0.6% QoQ, Latin America (1.9% of total revenue) grew by 6.2% QoQ, European (14.6% of total revenue) grew 2.7%

QoQ, UK (15.6% of total revenue) declined by 0.7% QoQ, India business (5.7% of total revenue) declined by 4.4%

QoQ and Asia Pacific region revenue (9.4% of total revenue) rose by 0.6% on QoQ basis.

In terms of USD revenues by industry verticals, BFSI grew by 1.3% QoQ, Retail & Distribution declined by 0.8% QoQ,

Communications grew by 2.03% QoQ, Manufacturing revenues grew by 0.6% QoQ and Life sciences & Healthcare

business grew by 3.1% QoQ. The revenues from Digital practice formed 33.2% of the total revenues (vs 32.2% in

Q1FY20) and grew by 3.7% QoQ.

The management highlighted that BFSI segment has seen increasing volatility in the last few quarters, especially in

Europe. Management also highlighted that Retail has started to see broad based weakness, however, guided that retail

sector customers continue to invest heavily in new technology initiatives which may drive revenue in future.

View: TCS came in with weak set of numbers for Q2FY20, mainly due to broad based weakness witnessed across the

segment. The management guided that the UK and Europe region continues to see strong traction and highlighted that the

deal pipeline was looking strong, which may drive growth going ahead. We believe, while there can be some weakness in the

near term, however, adoption of new technologies in the Digital, Automation, Analytics, Cloud migration, Micro services,

Cyber security, Intelligent automation etc. are likely to drive the incremental growth in the company. With the strong deal-flow,

impressive traction in digital business, rising non-linearity in earnings and currency tailwinds, TCS is likely to deliver steady

growth in the medium to long term. We have tweaked our FY20E/FY21E earnings lower to incorporate the near-term

weakness seen in the business. Currently, we have a Hold rating on the stock with a revised target price of Rs.2144

(from Rs.2270 earlier) on 21x FY21E EPS of Rs.98.7 and adding Rs.73 cash per share. Further any change in the rating

would depend on the earnings growth trajectory compared to the peers and overall business growth momentum.

600

800

1000

1200

1400

1600

1800

2000

2200

2400

No

v-16

Jan-

17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-17

Jan-

18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-18

Jan-

19

Mar

-19

May

-19

Jul-

19

Sep

-19

No

v-19

Daily closing price for last 3 years of TCS

Source: Bloomberg


Rs. in Bn. Q2FY20 Q1FY20 % QoQ

Revenue 226.3 218.0 3.8

EBITDA 56.4 51.5 9.5

EBITDAM 24.9% 23.6% 130 Bps

PAT 40.4 38.0 6.2

EPS (Rs.) 9.4 8.8

Key Details

52 week H/L(Rs) 847.4/600.7



FV (Rs) 5.0

PE (X) (TTM) 19.2


Infosys CMP: Rs.698

Page No. 20

Earnings Summary



18A 705 3.0 190 27.0 160 36.9 11.7 18.9 6.2

19A 827 17.2 209 25.3 155 35.7 (3.1) 19.5 4.5

20E 909 9.9 218 24.0 164 37.7 5.5 18.5 4.9

21E 1,014 11.6 248 24.5 187 42.9 13.8 16.3 5.5______________________________________________________________________________

Background: Infosys Ltd. (Infosys) is an Information technology services company that provides business consulting, technology, engineering and outsourcing services.

The Company also offers products, platforms and solutions to clients in different industries. Its business solutions include business IT services, consulting and systems

integration services, products, business platforms and solutions, and cloud computing and enterprise mobility.


Infosys Ltd reported numbers for Q2FY20, which were broadly inline with market expectation.

Revenue/Operating Profit/PAT grew by 11.8%/4.5%/1.5% YoY respectively in H1FY20.

In USD terms revenue grew by 2.5% QoQ at USD 3210 mn and in constant currency (CC) terms revenue grew by

3.3% QoQ. Organic CC revenue growth stood at 2.4% QoQ and rest was owing to Stater acquisition.

Infosys declared an interim dividend of Rs.8 per share.

In terms of revenues by geographical segments, North America (61.4% of revenues) grew by 3.5% QoQ, Europe

(24.1% of revenues) grew by 6% QoQ, India (2.7% of revenues) grew by 21.8% QoQ and Others (11.8% of revenues)

declined by 2% QoQ.

In terms of USD revenues by industry verticals, Financial Services grew by 4.2% QoQ, Manufacturing grew by

7.9% QoQ, Retail declined by 1.4% QoQ, Energy & Utilities, Resources and Services grew by 3.3% QoQ and

Communication declined by 2.7% QoQ. The company also reported 10.7% QoQ growth in its Digital business with

digital offerings now forming 38.4% of the revenues.

The management raised its revenue growth guidance for FY20 to 9-10% YoY in CC terms from earlier guidance of

8.5-10% YoY and maintained its EBIT margin guidance steady at 21-23%.

View: The Q2FY20 numbers of Infosys saw broad-based revenue growth across most of its verticals, except Retail. While the

Financial Services segment continued to witness growth aided by Stater acquisition, company is seeing some challenges in

BFSI in capital market business in Europe. However, management guided that there are new opportunities in BFSI from

consumer, corporate and commercial banking, payments and wealth management. The strong deal wins and additional

revenue from the acquisition may lead to improvement in revenue growth in the medium term. Also, digital revenue has been

growing at a steady pace for Infosys over the last many quarters and further traction seen in the Cloud related services with

many large organizations moving towards public cloud, Infosys is expected to see sustained growth given its large scale of

operation. Currently, we have a Buy rating on the stock with a revised target price of Rs.854 (from Rs.861 earlier) at

19x FY21 EPS of Rs.42.9 and adding Rs.39 cash per share. Any changes in the price target/valuation multiple would

depend on the ability of the company to outperform its guidance, future margin profile, inorganic initiatives and general

business momentum.

300

400

500

600

700

800

900

No

v-16

Jan-

17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-17

Jan-

18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-18

Jan-

19

Mar

-19

May

-19

Jul-

19

Sep

-19

No

v-19

Daily closing price for last 3 years of Infosys

Source: Bloomberg



Revenue 92.5 88.7 4.3

EBITDA 18.1 14.0 29.2

EBITDAM 19.6% 15.8% 380 Bps

PAT 6.4 3.7 72.4

EPS (Rs.) 23.3 13.5

Key Details

52 week H/L(Rs) 4903.9/3340



FV (Rs) 10.0

PE (X) (TTM) 36.1


UltraTech Cement CMP: Rs.4112

Page No. 21




18A 294 22.9 59 20.0 24 86.8 (9.6) 47.4 0.2

19A 399 36.0 71 17.7 25 88.0 1.3 46.7 0.3

20E 454 13.7 94 20.6 36 130.2 47.9 31.6 0.3

21E 518 14.2 116 22.4 49 176.7 35.7 23.3 0.3______________________________________________________________________________

Background: Ultratech Cement Ltd. (UltraTech) is a pan India cement manufacturer and is the largest manufacturer of grey cement, Ready Mix Concrete (RMC) and white cement

in India. The company has an installed capacity of 109.4 Mn Tons Per Annum (MTPA) at the end of FY19 (incl. Century Textile cement assets).Key highlights of the quarter:

Ultratech Cement Ltd reported weak results for Q2FY20 which were below market expectation mainly on account of poor

performance of recently amalgamated Century Textile’s cement assets.

Standalone revenue for the quarter increased by 4.3% YoY, however, ex-Century, revenue grew by 8.1% YoY during

Q2FY20, mainly driven by ~3% YoY growth in volume and balance due to higher realization.

Lower utilization for Century cement assets (~35% in Q2FY20 vs ~65% in Q2FY19) was mainly due to heavy floods in

Maharashtra, Madhya Pradesh and other East India states.

On per ton analysis (incl Century cement assets), cement sales volumes declined by 1.8% YoY to 17.8 mn ton (MT). The

blended realizations were up by 6.2% YoY to Rs.5210/ton, overall cost per ton increased by 1.5% YoY to Rs.4190/ton and

thus EBITDA/ton increased sharply by 31.6% YoY to Rs.1021/ton. PAT for the quarter grew by 72.4% YoY to Rs.6.4 bn.

In H1FY20, reported Revenue/EBITDA/PAT (incl. Century) grew by 12.3%/47.4%/89.7% YoY respectively.

The appointment date for Century Textile cement assets has been fixed at 20 May 2018 and as a result company has

restated the numbers accordingly for previous quarter as well. Hence FY19 numbers are not comparable.

On the demand front, management highlighted that all India cement demand de-grew by 3-4% YoY during Q2FY20. Overall

management expects all India cement demand to grow by ~2-4% YoY in FY20.

On the pricing, management guided that Q2FY20 saw sharp price correction in east and south markets (down 3-4% QoQ)

mainly due to poor demand. Amongst other regions, North India saw price improvement of ~4% QoQ during Q2FY20 and

Central and West India both saw a decline of ~2% QoQ in realization.

View: UltraTech Cement saw muted performance during Q2FY20 mainly due to heavy monsoon and lower demand pickup post

election which impacted the topline growth for the company. However, strong realization growth on YoY basis helped to offset the

volume decline impact for the company. While, Century plants operated at lower utilizations during Q2FY20, we believe, Ultratech’s

capability to ramp up the production and re-brand the century cement with Ultratech branding, will drive the profitability for the

company going ahead. On the long term, management expects cement demand in the country to grow at a faster pace as compared

to capacity additions, which is expected to drive utilization and hence profitability for the company. The government has also

announced many new infrastructure projects in roads (Bharatmala), ports (Sagarmala), metros etc, which may continue to drive the

cement demand in FY20 and beyond. We have revised our earnings estimate for FY20 and FY21 to incorporate the acquired

century cement numbers. Currently, we maintain a Buy rating on the stock with a revised target price of Rs.5598 (from

Rs.5401 earlier) at 15x FY21E EV/EBITDA multiple. Any revision in earnings/target price would depend upon changes in volumes

growth, blended realization, EBITDA/ton, rollover of financial year and general business momentum.

2500

3000

3500

4000

4500

5000

No

v-16

Jan-

17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-17

Jan-

18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-18

Jan-

19

Mar

-19

May

-19

Jul-

19

Sep

-19

No

v-19

Daily closing price for last 3 years of UltraTech Cem.

Source: Bloomberg



Revenue 227.6 222.6 2.3

EBITDA 63.5 55.9 13.5

EBITDAM 27.9% 25.1% 280 Bps

PAT 26.7 21.4 24.8

EPS (Rs.) 3.3 2.5

Key Details

52 week H/L(Rs) 145.9/106.8



FV (Rs) 10.0

PE (X) (TTM) 8.5


NTPC CMP: Rs.118

Page No. 22

Earnings Summary



18A 835 6.6 217 26.0 103 10.5 0.6 15.0 3.1

19A 903 8.2 228 25.2 117 11.9 13.6 13.2 3.8

20E 978 8.2 271 27.7 132 13.4 12.4 11.8 3.2

21E 1071 9.6 302 28.2 154 15.6 16.9 7.6 4.2______________________________________________________________________________

Background: NTPC Ltd. (NTPC) is India’s largest energy conglomerate to accelerate power development in India. NTPC has established itself as the dominant power major with

presence in the entire value chain of the power generation business. From fossil fuels it has forayed into generating electricity via hydro, nuclear and renewable energy sources.

The total installed capacity of the company is ~55.1 GW as on Mar 2019.


NTPC reported weak set of numbers for Q2FY20, largely impacted by lower gross energy production. During Q2FY20,

Revenue/EBITDA/PAT grew by 2.3%/13.5%/24.8% YoY, respectively.

The revenue for the quarter grew by 2.3% YoY, mainly led by higher tariff (up by 9.4% YoY) despite 6.6% YoY decline in

gross generation.

Plant Load Factor (PLF) for coal based units for the quarter stood lower at 64.3% against 72.6% in Q2FY19, mainly due to

lower power demand and unavailability of coal at few power plants.

NTPC’s installed capacity (group level) increased to 57,106 MW at the end of Q2FY20 against 55,126 at the end of Q1FY20

and 53,651 MW at the end of Q2FY19.


Management has guided for capacity addition of ~5.3 GW of new capacity addition in FY20 (3.97 GW in Standalone) which is

expected to drive the regulated equity for the company. NTPC has about 20 GW capacity under construction and

commercialization of the same in the next 3-5 years is likely to remain a key positive for the company.

NTPC has entered into a Long Term Fuel Supply Agreements with CIL and SCCL for supply of coal for total Annual Contract

Quantity of ~172 MTPA. Company has also signed MoU with Railways for ensuring smooth coal transportation. Further,

company has also awarded tenders for importing ~6.5 MT of coal and this is further expected to help in feeding the plants

facing coal shortages and reducing under-recovery.

View: NTPC Ltd is the largest power generating company in India with an installed capacity of ~57.1 GW at the end of Q2FY20.

NTPC’s profitability was boosted in Q2FY20 on YoY basis due to higher surcharge income (Rs.6.5 bn) as payments from SEBs have

been delayed. However, continuation of fixed cost under recovery as few plants faced coal shortage during the quarter, impacted the

performance to some extend. Going forward, company expects under-recovery to be lower as government as well as company has

taken various steps to improve the coal availability which is likely to improve the profitability going ahead. We believe NTPC’s

capacity addition momentum to pick up FY20 as many projects are near completion and management has maintained the target to

add ~5.2 GW in FY20 (added ~1.9 GW in H1FY20). With strong pipeline of capacity addition in order to achieve its long term

capacity guidance of 132 GW by 2032, growth visibility for the company remains promising. Given the subdued PLF in H1FY20 on

the back of lower power demand, we have revised our numbers lower for FY20 and FY21. Currently, we have a Buy rating on the

stock with a revised target price of Rs.191 (from Rs.194 earlier) which is 1.5x FY21E book value of Rs.128/share. Any

revision in the target price would depend upon changes in the capacity addition/execution, PLF and general business momentum.

100105110115120125130135140145150

No

v-16

Jan-

17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-17

Jan-

18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-18

Jan-

19

Mar

-19

May

-19

Jul-

19

Sep

-19

No

v-19

Daily closing price for last 3 years of NTPC

Source: Bloomberg



Revenue 28.1 24.1 16.6

EBITDA 2.9 2.5 16.1

EBITDAM 10.5% 10.5% 0 Bps

PAT 1.4 0.9 44.3

EPS (Rs.) 5.4 3.7

Key Details

52 week H/L(Rs) 340.5/230



FV (Rs) 2.0

PE (X) (TTM) 13.3


KEC International CMP: Rs.278

Page No. 23

Earnings Summary



18A 100.5 17.1 10.1 10.0 4.6 17.8 50.4 15.6 0.6

19A 110.0 9.4 11.5 10.5 4.9 18.9 6.1 14.7 0.9

20E 126.5 15.0 13.3 10.5 6.1 23.6 24.9 11.8 0.9

21E 141.7 12.0 15.0 10.6 7.0 27.1 14.8 10.2 0.9______________________________________________________________________________

Background: KEC was incorporated in 1945 as Kamani Engineering Corporation by the RPG Group. KEC is a Global Power Transmission Infrastructure major for

Engineering Procurement and Construction (EPC) projects. It has presence in the verticals of Power Transmission & Distribution (T&D), Cables, Railways, Water,

Renewables (Solar Energy) and Civil. Globally, the company has powered infrastructure development in more than 61 countries.Key highlights of the quarter:

KEC International Ltd (KEC) reported strong set of results for Q2FY20, which was above market expectation.

Consolidated sales for the quarter was mainly driven by Transmission & Distribution (T&D) and Railways business.

Overall Revenue/EBITDA/PAT for the Q2FY20 grew by 16.6%/16.1%/44.3% YoY respectively.

On segmental performance, T&D segment revenue (~58% of total revenue) grew by 21% YoY, SAE Tower business

(~13% of total revenue) grew by 95% YoY, Railways segment revenue (~20% of total revenue) grew by 35% YoY,

Cable business revenue (~9% of the total revenue) declined by 6% YoY, Solar business revenue (~1% of total

revenue) came in at Rs.0.11 bn while newly ventured Civil business revenue declined by 51% YoY to Rs.0.52 bn.

Order inflows declined by 48.9% YoY to Rs.26.5 bn. Order book at the end of Q2FY20 stood at Rs.180.85 bn, down by

10.2% YoY. Such sharp decline in the order inflow was mainly due to lower intake in T&D segment (down by 80% YoY

in Q2FY20).


Management has retained its guidance for sales growth of 15-20% YoY and EBITDA margin of 10-10.5% for FY20 and

also guided for similar growth in FY21 on the back of strong order book and L1 position of ~Rs.50 bn. However, given

the subdued order inflow in H1FY20, KEC expects order inflow for FY20 to be in similar range of FY19.

View: KEC delivered strong operational growth during H1FY20, however, lower order inflow, higher interest cost and working

capital days continues to remain a concern in the near term. While the management has guided that weakness in T&D

ordering was on the back of general elections during H1FY20, post which the ordering momentum is likely to see a sharp pick

up on the back of huge bid pipeline in the domestic T&D market and expected pickup in the Brazil and Middle East regions.

Moreover, on Railways with ~30000 kms of railway lines yet to be electrified, the revenue visibility for the railway segment

remains strong, given the KEC’s leadership position in the railway overhead electrification segment. We believe, expected

improvement in order inflow, reducing debt profile, diversification of overall company revenue via both, diversified client base

and segment base (T&D & Non T&D share) is likely to drive profitability for the company in the medium to long term.

Currently, we maintain a Buy rating on the stock with a target price of Rs.407 at 15x FY21E EPS of Rs.27.1. Any

earning/target price revision would depend on the ordering and tendering activities by domestic T&D players, improvement in

market share and changes in general business momentum.

050

100150200250300350400450500

No

v-16

Jan-

17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-17

Jan-

18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-18

Jan-

19

Mar

-19

May

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Jul-

19

Sep

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No

v-19

Daily closing price for last 3 years of KEC International

Source: Bloomberg

______________________________________________________________________________



Revenue 109.4 127.9 (14.5)

EBITDA 15.4 18.5 (16.7)

EBITDAM 14.1% 14.5% (37) bps

PAT 13.5 17.8 (23.8)

EPS (Rs.) 10.9 14.3

Key Details

52 week H/L(Rs) 814/502.9



FV (Rs) 5.0

PE (X) (TTM) 22.2


Mahindra & Mahindra CMP: Rs.548

Page No. 24

Earnings Summary – Standalone (Including MVML)



18A 476 15.0 70 14.8 46 37.2 12.5 14.7 1.4

19A 528 11.1 75 14.2 54 43.4 16.8 12.6 1.4

20E 497 (6.0) 68 13.6 44 35.7 (17.8) 15.3 1.4

21E 547 10.1 73 13.3 47 37.9 5.9 14.5 1.4

Background: Mahindra and Mahindra Ltd (M&M)’s business segments include Automotive Segment that comprises of sale of automobiles, spare parts and

related services and Farm Equipment Segment (FES), which includes sale of tractors, spare parts and related services. Its subsidiaries include Tech Mahindra

Ltd., Mahindra & Mahindra Financial Services Ltd., Mahindra Investments (India) Private Ltd. and Mahindra Investments (International) Private Ltd. etc.


M&M reported for Q2FY20 numbers, which were lower than market expectation. Revenue/EBITDA/PAT fell by

14.5/16.7/23.8% YoY, respectively.

On the segmental basis, Automotive segment’s revenue fell by 18.4% YoY and FES’ revenue fell by 9.8% YoY.

As per management, festive season had witnessed good retail sales, both in automotive as well as tractor

segments. Further, it stated that inventory levels in both FES and Automobile segment has reduced significantly.

Management expects, volume in Tractor industry to fall by 7-8% YoY in FY20 (as lower fall expected in H2),

positive growth in UVs, double-digit decline in passenger cars in H2 resulting in 5% YoY fall in overall PVs and

25% YoY fall in CVs in H2.

M&M plans to launch three new product starting FY21 and also plans to launch e-KUV, electric XUV 300 and an

EV for last mile connectivity in the next couple of years.

For H1FY20, Revenue/EBITDA/PAT fell by 9.2/15.8/21.8% YoY, respectively.

View: M&M was able to increase its market share in a difficult demand environment in the tractor segment from 39.8%

in Q2FY19 to 41.3% in Q2FY20 and in Passenger Vehicle segment from 7.0% in H1FY19 to 7.8% in H1FY20. M&M

was also able to maintain its margin despite sharp drop in overall sales volumes. While M&M has given subdued

guidance for full year, it expects H2 to be better than H1 in some of segments in automotive division and also expect

positive growth for Tractor industry in FY21. M&M also plans to launch series of new products coupled with few

launches in electric space as well in coming years, which would help company to drive its demand going ahead. We

remain positive on the medium term potential of the company on the back of new product launches, healthy return ratios

of 15% plus (i.e, RoCE in FY19) and attractive valuation. However, given the subdued performance in H1FY20, we

have revised our FY20 and FY21 earnings. We maintain our Buy rating on the stock with the revised target price

of Rs.701 (earlier Rs.793) at 13x FY21E EPS of Rs.37.9 adding Rs.209 as value of subsidiaries at 30% holding

company discount. Any earning/target price revision would depend on the performance of new launches, improvement

in market share, any regulatory changes, changes in the value of subsidiaries, rollover to next financial year and

changes in general business momentum.

400

500

600

700

800

900

1000

No

v-16

Jan-

17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-17

Jan-

18

Mar

-18

May

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Jul-

18

Sep

-18

No

v-18

Jan-

19

Mar

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May

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Jul-

19

Sep

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No

v-19

Daily closing price for last 3 years of M & M

Source: Bloomberg

______________________________________________________________________________



Revenue 27.8 27.7 0.2

EBITDA 4.1 3.9 4.3

EBITDAM 14.7% 14.1% 57 bps

PAT 2.2 2.1 6.8

EPS (Rs.) 2.6 2.5

Key Details

52 week H/L(Rs) 274/166



FV (Rs) 1.0

PE (X) (TTM) 19.7


Exide Industries CMP: Rs.198

Page No. 25

Earnings Summary



18A 91.9 21.1 12.4 13.5 6.7 7.9 (3.6) 25.1 1.2

19A 105.9 15.3 14.1 13.3 8.4 9.9 26.3 19.9 1.2

20E 103.8 (2.0) 14.5 14.0 8.4 9.9 (0.8) 20.1 1.2

21E 114.1 10.0 16.2 14.2 9.9 11.6 18.0 17.0 1.2

Background: Exide Industries (Exide) is a manufacturer of lead acid storage batteries and allied products for automotive and industrial applications for UPS,

Solar, Telecom as well as other Infrastructure segments. It is also engaged in life insurance business carried by one of its subsidiaries.


Exide reported muted set of numbers for Q2FY20, however, they were in-line with the market expectations.

Revenue/EBITDA/PAT grew by 0.2/4.3/6.8% YoY, respectively. It has declared interim dividend of Rs.1.6/share.

The improvement in EBITDA margin during Q2FY20 was due to lower lead prices and better product mix.

In Q2FY20, Exide had seen subdued revenue growth owing to sharp slowdown in demand from automobile

OEMs especially in passenger vehicle segment and Telecom in industrial segment.

However, growth in replacement segment in Automotive batteries and strong market share in Industrial segments

of UPS, Solar as well as other Infrastructure segments except Telecom, supported the volume growth in Q2FY20

Exide has recently forayed into manufacturing of E-rickshaw and would sell under the brand of “Exide Neo”

across markets such as West Bengal, Uttar Pradesh, North East and the National Capital Region. The

management expects to generate ~Rs.1.2 bn revenue in the first year of operation (FY21).

For H1FY20, Revenue fell by 1.9% YoY, while EBITDA/PAT grew by 7.1/24.7% YoY, respectively.

View: Exide has seen mixed performance in H1 where its infrastructure and automobile replacement batteries segment

helped in off-setting weakness in automobile OEM segment. Going ahead, demand for batteries from Industrial

segment is expected to continue with the expected recovery in capex cycle over the medium to long term. Moreover,

Exide is also diversifying its product portfolio by launching E-rickshaw- ExideNeo, entering into Joint Venture (JV) with

Leclanché SA to build lithium-ion batteries and by introducing start-stop batteries, e-rickshaw battery and completely

sealed and maintenance-free battery, which should support growth. Exide is also focusing on capturing market share

from the unorganized segment by providing higher services and warranty period, increasing dealer margin and

introducing new products in the aftermarket segment across categories and price points. We have revised our numbers

for FY20 & FY21 and lowered the target PE multiple considering the ongoing slowdown in automobile OEM segment

and volatility in lead prices after incorporating benefits of lower taxation. However, we remain positive on the company

given its focus on gaining market share and expanding product portfolio. Hence, we maintain our Buy rating on the

stock with the revised target price of Rs.261 (earlier Rs.283) at 20x (~10% discount to 5 years average PE

multiple) FY21E EPS of Rs.11.6 and adding Rs.28 per share for the embedded value in Insurance business (as

of Mar'19). Any earning revision would depend on improvement in margin, change in value of Insurance business and

changes in general business momentum.

100

150

200

250

300

350

No

v-16

Jan-

17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-17

Jan-

18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-18

Jan-

19

Mar

-19

May

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Jul-

19

Sep

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No

v-19

Daily closing price for last 3 years of Exide Inds.

Source: Bloomberg

______________________________________________________________________________



Revenue 77.1 79.9 (3.5)

EBITDA 12.8 13.4 (4.8)

EBITDAM 16.6% 16.8% (23) bps

PAT 14.0 11.5 21.7

EPS (Rs.) 48.5 39.8

Key Details

52 week H/L(Rs) 3289.5/2400



FV (Rs) 10.0

PE (X) (TTM) 18.8


Bajaj Auto CMP: Rs.3196

Page No. 26

Earnings Summary – Standalone



18A 252 15.9 48 19.2 41 140.6 6.3 22.7 1.9

19A 302 19.9 50 16.5 47 161.6 14.9 19.8 1.9

20E 312 3.0 50 16.2 48 165.2 2.2 19.3 1.9

21E 346 10.9 57 16.5 53 184.6 11.8 17.3 1.9

Background: Bajaj Auto Limited is an India-based manufacturer of motorcycles, three-wheelers and its parts. The Company's plants include Waluj plant, Chakan

plant and Pantnagar plant. The Company's subsidiaries include PT. Bajaj Auto Indonesia and Bajaj Auto International Holdings BV.


Bajaj Auto reported decent set of numbers for Q2FY20 which were higher than the market expectation.

Revenue/EBITDA fell by 3.5/7.7% YoY, respectively. However, PAT grew by 21.7% YoY, due to lower tax rate.

Overall volumes fell by 12.4% YoY owing to 12.6% YoY fall in Motorcycle (2W) volumes and 11.1% YoY fall in

commercial vehicle (CV)/three-wheeler (3W) volumes in Q2FY20.

While revenue grew marginally by 0.1% YoY and EBITDA fell by 7.7% YoY, PAT grew by 11.5% YoY in H1FY20.

The performance of Bajaj was in-line with the industry with market share in retail segment was at ~20%. Bajaj

has been able to maintain its dominance in domestic CV/3W segment with overall market share of 59.4%. Bajaj

also continued to outperform in export markets where it competes and gained 2.5% points market share in overall

2W exports from India.

The management highlighted that some recovery was witnessed in second half of September month and festive

sales for Bajaj reached to last year’s festive sales. However, sustainability of improvement in sales remains key.

Favorable product mix and lower raw material cost were key reason for sequential improvement of 110 bps in

margin. The management expects Q3FY20 may witness some more benefit from low raw material cost.

View: For Bajaj Auto, improvement in overall product mix and in margin were key positive for the quarter. Moreover,

company expects new models in entry level segment would be at a higher margin compared to existing ones, which

would further help in margin improvement. While management expects domestic market to see some positive move

owing to festive season, export growth momentum to continue going ahead. We have a long-term positive stance on

Bajaj Auto considering its focus on market share in domestic Motorcycle industry, strong R&D capabilities, robust

balance sheet with huge cash and cash equivalent of ~Rs.159.8 bn (as on Sept’19), strong return ratios with ROE of

over 20%, ROCE of close to 30% and dividend yield of ~2% for past two years. We have revised our numbers for FY20

and FY21 to incorporate H1 performance and changes in tax rates. We have a Hold rating on the stock with the

revised target price of Rs.3475 (earlier Rs.3376) at 18x FY21E EPS of Rs.184.6 and adding Rs.152 per share for

48% stake in KTM AG of Austria (at 18x FY19 Bajaj’s share of EPS of Rs.12.1 after 30% holding company

discount). Any earning/rating revision would depend on the performance of new launches, improvement in overall

EBITDA, rollover to the next financial year and changes in general business momentum.

2000

2200

2400

2600

2800

3000

3200

3400

No

v-16

Jan-

17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-17

Jan-

18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-18

Jan-

19

Mar

-19

May

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Jul-

19

Sep

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No

v-19

Daily closing price for last 3 years of Bajaj Auto

Source: Bloomberg

______________________________________________________________________________



Revenue 78.2 42.6 83.6

EBITDA 15.4 8.4 83.4

EBITDAM 19.7% 19.7% (2) bps

PAT 0.9 2.8 (67.8)

EPS (Rs.) 1.2 3.6

Key Details

52 week H/L(Rs) 709.3/481.5



FV (Rs) 2.0

PE (X) (TTM) 35.4


UPL CMP: Rs.544

Page No. 27




18A 174 6.5 35 20.2 20 39.8 16.4 13.7 1.5

19A 218 25.7 41 18.8 14 18.9 (52.4) 28.7 1.5

20E 362 65.6 72 20.0 31 41.0 116.6 13.3 1.5

21E 398 10.0 82 20.5 42 55.3 34.8 9.8 1.5

Background: UPL is a leading global producer of crop protection products, intermediates, speciality chemicals and other industrial chemicals. Being the largest

manufacturer of agrochemicals in India, UPL offers a wide range of products that include Insecticides, Fungicides, Herbicides, Fumigants, PGR and Rodenticides.


UPL reported mixed set of numbers for Q2FY20, however, the numbers are not comparable due to Arysta

acquisition. Revenue/EBITDA grew by 83.6/83.4% YoY, respectively, while PAT was down by 67.8% YoY.

On like to like basis (i.e, including Arysta in Q2 of FY19 and FY20), Revenue/EBITDA grew by 10.6/11.3% YoY,

respectively. Overall volume grew by 15% YoY, while realization was down by ~1% YoY in Q2FY20.

On geographical revenue breakup (like to like basis), India (~15% of consolidated revenue) fell by 6.2% YoY,

Latin America (~48%) grew by 24.3% YoY, Europe (~12%) grew by 1.0% YoY, while North America (~8%) and

Rest of World (~17%) fell by 1.4% YoY and 3.8% YoY, respectively.

India business was impacted due to untimely heavy rainfall in Central India along with pricing pressure on key

molecules, while declining sugar beet prices and Brexit impacted revenue growth in Europe. ROW performance

was impacted by severe drought faced by South East Asia, Australia and parts of Africa.

UPL expects H2 to be better than H1 as it expects conditions for Europe and North America to improve, which

provides better margins. As a result, the management has maintained its 8-10% revenue growth and 16-20%

EBITDA growth guidance coupled with USD 500 mn debt reduction in FY20.

For H1FY20, Revenue/EBITDA/PAT grew by 87.4/65.2 YoY, respectively, while PAT was down by 58.5% YoY.

View: UPL is a leading global generic player in the Agrochemical Industry and ranked among the top-5 post patent

agrochemical manufacturers in the world after the acquisition of Arysta. The acquisition has provided access to high

growing segments, more balanced geographical revenue mix and synergy benefit. UPL’s leadership position in key pest

resistance products and its cost advantage is helping the company to outperform the industry in key markets and gain

market share. Going ahead, the overall volume growth is expected to improve on the back of increased focus on

product portfolio expansion, untapped markets like Africa & China and synergy benefits. Despite challenging

environment globally, UPL has maintained its full year guidance of 8-10% YoY revenue growth and 16-20% YoY

EBITDA growth on consolidated entity along with debt reduction of USD 500 mn. However, due to rise in depreciation

and interest cost, we have revised our estimate for FY20 and FY21. We maintain our Buy rating on the stock with

the revised target price of Rs.719 (earlier Rs.768), which is 13x FY21E EPS of Rs.55.3. Any revision in the

earning/rating would depend upon the change in the product launching strategy, volume growth, forex impact,

management guidance, accrual of synergy benefits, debt levels and general business momentum.

300

350

400

450

500

550

600

650

700

750

No

v-16

Jan-

17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-17

Jan-

18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-18

Jan-

19

Mar

-19

May

-19

Jul-

19

Sep

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No

v-19

Daily closing price for last 3 years of UPL

Source: Bloomberg

Quarterly Result Snapshot- Standalone


Revenue 47.9 51.2 (6.3)

EBITDA 6.6 10.7 (38.4)

EBITDAM 13.7% 20.9% (720)Bps

PAT 5.3 8.2 (35.5)

EPS (Rs.) 8.0 12.4

Key Details

52 week H/L(Rs) 958.6/635.6



FV (Rs) 2.0

PE (X) (TTM) 11.7


Grasim Industries CMP: Rs.823

Page No. 28




18A 157.9 52.6 30.8 19.5 20.4 31.0 (7.1) 26.5 0.7

19A 205.5 30.2 40.7 19.8 28.8 43.8 41.3 18.8 0.8

20E 208.2 1.3 35.8 17.2 22.5 34.1 (22.1) 24.1 0.9

21E 254.1 22.1 50.1 19.7 30.4 46.2 35.3 17.8 0.9 _____________________________________________________________________________

Background: Grasim Industries Ltd. (Grasim) is engaged in two businesses include viscose staple fibre (VSF) and cement. The Company also produces Rayon Grade Pulp,

Caustic Soda and allied chemicals, which are used in the manufacture of VSF. The Company manufactures fibre and pulp, which includes viscose staple fibre and rayon grade

pulp; chemicals, which include caustic soda, epoxy and allied chemicals, and others, which include textiles.


Grasim Industries reported weak set of results for Q2FY20 mainly impacted by poor margins due to pricing pressure. During

Q2FY20, Revenue/EBITDA/PAT declined by 6.3%/38.4%/35.5% YoY, respectively.

In terms of the segmental performance, the VSF segment revenue was down by 6.7% YoY, mainly impacted by lower

realization (down by 9.1% YoY owing to decline in global fibre prices) which was partially offset by 2.7% YoY growth in sales

volume. Chemical segment’s revenue declined by 16.4% YoY mainly on the back of 10.5% YoY decline in realization and

6.6% YoY decline in volumes.

Management highlighted that global softening in VSF prices was mainly due to capacity over-hang and US-China trade war

leading to decline in China’s sale into US. On Chemical segment, management highlighted that Chlorine realizations

remained negative during Q2FY20 for second consecutive quarter mainly due to higher supply. Further, management

highlighted that recently domestic caustic prices have declined due to demand slowdown and commissioning of new domestic

capacities, which has resulted in overall drop in realization.

On further investments in Voda-Idea Ltd (VIL), management clarified that the company has not given any guarantee or letter

of comfort for VIL business and it has no plans of doing so in future as well and exposure in VIL would not be exceeding the

equity investment.

In H1FY20, Revenue/EBITDA/PAT declined by 1.1%/30.1%/30.2% YoY, respectively.

View: Grasim is a global leader in viscose staple fibre (VSF) with an aggregate installed capacity of 612,000 ton per annum (tpa) as

on FY19 (including VFY). The company is also the largest producer of Sodium Sulphate, a by-product of VSF, widely used in the

paper and pulp, detergent, glass and textile industries. On VSF business, management highlighted that while the realization

witnessed pressure during H1FY20 led by excess capacity and guided that prices are expected to remain benign going ahead on the

back of higher VSF capacity additions expected globally. However, expects profitability to improve led by reduce prices of raw

material and other inputs which is generally reflected with a lag a six months. Given the weak pricing scenario for both VSF and

Chemical segment we have revised our earnings for FY20 and FY21. Currently, we maintain a Buy rating on the stock with a

revised price target of Rs.1398 (from Rs.1408 earlier) which is summation of 9xFY21E EPS of Rs.46.2 for Standalone

business along with 60.2% company’s stake in UltraTech Cement valued at Rs.845/share (after providing for 40% holding

company discount based on our FY21 target price of Rs.5598 for UltraTech) and 56% company stake in ABCL valued at

Rs.147/share (after providing for 40% holding company discount based on current market price). Any revision in the target

price would depend upon change in VSF volumes, realizations, valuation of UltraTech Cement or ABCL, general business

momentum and the valuation of the business which is to be merged.

200

400

600

800

1000

1200

1400

No

v-16

Jan-

17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-17

Jan-

18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-18

Jan-

19

Mar

-19

May

-19

Jul-

19

Sep

-19

No

v-19

Daily closing price for last 3 years of Grasim Inds

Source: Bloomberg

Page No. 29

Disclaimer & Disclosures

______________________________________________________________________________

Rating Expected to

Buy Appreciate more than 10% over 12-18 month period

Hold Appreciate below 10% over 12-18 months period

Under Review Rating under Review

Exit Exited out of model portfolio

Rating Interpretation

Disclaimer: Disclosure:

We, (Nilesh Jethani), (PGP in Global Financial Markets) and (Nishant Sharma), (PGDM in Finance), authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about

the subject issuer(s) or securities. HSL has no material adverse disciplinary history as on the date of publication of this report. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s)

or view(s) in this report.

Research Analyst or his/her relative or HDFC Securities Ltd. does not have any financial interest in the subject company. Also Research Analyst or his relative or HDFC Securities Ltd. or its Associate may have beneficial ownership of 1% or more in the

subject company at the end of the month immediately preceding the date of publication of the Research Report. Further Research Analyst or his relative or HDFC Securities Ltd. or its associate does not have any material conflict of interest.

Any holding in stock – No

HDFC Securities Limited (HSL) is a SEBI Registered Research Analyst having registration no. INH000002475.

Disclaimer:

This report has been prepared by HDFC Securities Ltd and is meant for sole use by the recipient and not for circulation. The information and opinions contained herein have been compiled or arrived at, based upon information obtained in good faith from

sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to

change without notice. This document is for information purposes only. Descriptions of any company or companies or their securities mentioned herein are not intended to be complete and this document is not, and should not be construed as an offer or

solicitation of an offer, to buy or sell any securities or other financial instruments.

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publication, reproduction, availability or use would be contrary to law or regulation or what would subject HSL or its affiliates to any registration or licensing requirement within such jurisdiction.

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Foreign currencies denominated securities, wherever mentioned, are subject to exchange rate fluctuations, which could have an adverse effect on their value or price, or the income derived from them. In addition, investors in securities such as ADRs, the

values of which are influenced by foreign currencies effectively assume currency risk.

It should not be considered to be taken as an offer to sell or a solicitation to buy any security. HSL may from time to time solicit from, or perform broking, or other services for, any company mentioned in this mail and/or its attachments.

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Documents

Conservative Portfolio One Pager Note Q2FY20 One Pager...Voltas Ltd. offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning,