30 August 2021

Market snapshot Today’s top research idea

Equities - India Close Chg .% CYTD.% Clean Science and Technology - Initiating Coverage:
Sensex 56,125 0.3 17.5
Novel chemistry at play
Nifty-50 16,705 0.4 19.5
Nifty-M 100 27,706 1.1 32.9  Clean Science and Technology (CSTL) has emerged as the global leader in most of
Equities-Global Close Chg .% CYTD.% its product categories. It has further bolstered its value chain through novel
S&P 500 4,509 0.9 20.1 manufacturing technology based on green chemistry for one of the key raw
Nasdaq 15,130 1.2 17.4 materials.
FTSE 100 7,148 0.3 10.6  CSTL's streak is driven by its strong R&D capabilities - in both plant technological
DAX 15,852 0.4 15.5 development as well as process innovation. This has led to the gross margin
Hang Seng 8,958 0.2 -16.6 expanding to 76% in FY21 from 62% in FY16 (the EBITDA margin expanded from
Nikkei 225 27,641 -0.4 0.7 33% to 50.5% over FY16-21).
Commodities Close Chg .% CYTD.%  We expect CSTL's revenues to grow at a CAGR of ~23% over FY21-24 (on the back
Brent (US$/Bbl) 71 1.7 39.3 of capacity additions at Unit-III in phases over FY22). The company also plans to
Gold ($/OZ) 1,818 1.4 -4.3 capture higher market share for its products. Its EBITDA margin is likely to remain
Cu (US$/MT) 9,424 1.2 21.6 robust at ~49%, with the gross margin at ~70% over FY21-24 - as the company
Almn (US$/MT) 2,675 1.4 35.6 continues to improve the yield of its products and processes.
Currency Close Chg .% CYTD.%  In view of its dominating product market share and ability to sustain the highest
USD/INR 73.7 -0.7 0.9 margins in the industry, we initiate coverage on CSTL with a Buy rating.
USD/EUR 1.2 0.4 -3.4
USD/JPY 109.8 -0.2 6.4
YIELD (%) Close 1MChg CYTD chg Research covered
10 Yrs G-Sec 6.3 0.00 0.4
10 Yrs AAA Corp 7.0 0.01 0.4 Cos/Sector Key Highlights
Flows (USD b) 27-Aug MTD CY21 Clean Science and Technology Novel chemistry at play
FIIs -0.11 0.37 6.86
Bharti Airtel Bharti approves INR210b right issue
DIIs 0.22 1.09 2.90
Volumes (INRb) 27-Aug MTD* YTD* India Strategy Vaccination drive gathers momentum
Cash 581 674 762 Automobiles PV wholesales impacted by semiconductor shortage
F&O 28,923 58,196 46,390
Note: *Average

Chart of the Day: Clean Science and Technology (Novel chemistry at play)
EBITDA margins to remain robust, as the company Focus on R&D and innovation has led to new product launches on
continues to improve yields of its products and processes a consistent basis
Calendar
Event
year
 R&D breakthrough into the Hindered Amine Light
2021
Stabilizers (HALS) series
2020  Commenced manufacturing DCC
 Started manufacturing Anisole using vapor phase
2018 technology
 Commenced manufacturing AP
 Commenced manufacturing Anisole using liquid phase
2017
technology
2014  Commenced manufacturing BHA
2011  Commenced manufacturing 4 MAP
2009  Commenced manufacturing MEHQ and Guaiacol
Source: Industry, MOFSL

Research Team ([email protected])

Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 In the news today
Kindly click on textbox for the detailed news link

1 2
Three hospital chains to raise India's economy ready for faster growth, says Ashima Goyal
up to Rs 6,300 crore via IPOs Noted economist Ashima Goyal reposed confidence in India's economy
Three leading hospital chains — and said that the economy is ready for faster recovery from pandemic
True North-backed Cloudnine lows. "Despite the Covid-19 severe shock, India's macroeconomy is more
Hospitals, Naresh Trehan’s healthy and ready for faster growth than it has been for a long time. That
Medanta and Gurgaon-based Park recovery from both the first and second waves was faster than expected
Group — are planning to raise up points towards inherent strengths of the economy," she said in an
to Rs 6,300 crore through initial interview to PTI.
public offerings, amid high
investor interest in healthcare
facilities in the aftermath of the
Covid-19 pandemic.

3 4
After July, August too set to IT companies stagger fresher
record less than normal hiring through the year
rainfall: IMD IT services firms have started
staggering their intake of freshers
5
The rainfall in August has been
deficient by 26 per cent so far, through the year in order to be Tata Steel to invest Rs 8,000
with shortfalls in two successive more responsive to the changing cr in capex on India
months triggering fear of a below business environment. At the start operations during FY22: CEO
normal monsoon this year. of the previous fiscal, several firms
T V Narendran
According to India Meteorological had deferred onboarding freshers
Domestic steel giant Tata Steel
Department (IMD) data, the on account of the uncertainty in
will invest Rs 8,000 crore in
rainfall in July was seven per cent the business environment.
capital expenditure on its India
less than normal. operations during the current
financial year, the company's CEO
and Managing Director T V
Narendran said.
6 7
Elon Musk's Tesla in talks with 3 Pandemic has India
Indian firms for auto scrambling to boost its
components: Report manufacturing sector
Tesla Inc is in talks with at least For decades, the services
three Indian auto component industry powered India’s growth
suppliers as part of its plans to and tempered unemployment in
enter the local market, the the world’s second-most
Economic Times reported. populous nation. The
coronavirus pandemic is now
leading to calls for an urgent
rebalancing of the economy
toward manufacturing.

30 August 2021 2
 Initiating Coverage | Sector: Chemicals

Clean Science and Technology

BSE Sensex S&P CNX
56,125 16,705 CMP: INR1,438 TP: INR1,700 (+18%) Buy

Novel chemistry at play

 Clean Science and Technology (CSTL) recently concluded its IPO via an offer for
Bloomberg CLEAN IN
sale of INR15.5b, priced at INR900/share. Post the IPO the promoter
Equity Shares (m) 106.2
shareholding stands at 78.5%.
M.Cap.(INRb)/(USDb) 152.7 / 2.1
 CSTL has emerged as the global leader in most of its product categories on the
52-Week Range (INR) 1784 / 1423
back of niche product offerings catering to polymer inhibitors / super-
1, 6, 12 Rel. Per (%) -21/-/-
absorbents, anti-oxidants for the Food/Feed industry, pharma, home, and
12M Avg Val (INR M) 2656
personal care. It has further bolstered its value chain through novel
Financial Snapshot (INR m)
manufacturing technology based on green chemistry for one of the key raw
Y/E March FY22E FY23E FY24E materials.
Sales 6,277 8,002 9,606  CSTL’s streak is driven by its strong R&D capabilities – in both plant
EBITDA 3,044 3,921 4,707 technological /engineering development as well as process innovation (based
PAT 2,353 3,030 3,611 on greener chemistries). This has led to the gross margin expanding to 76% in
EPS (INR) 22.2 28.5 34.0 FY21 from 62% in FY16 (the EBITDA margin expanded from 33% to 50.5% over
EPS Gr. (%) 18.6 28.8 19.2 FY16–21).
BV/Sh.(INR) 69.6 93.9 122.8  The company has posted a robust revenue CAGR of ~29% in the last five years.
Ratios We expect CSTL’s revenues to grow at a CAGR of ~23% over FY21–24 (on the
Net D:E (0.2) (0.3) (0.4) back of capacity additions at Unit-III in phases over FY22). The company plans to
RoE (%) 36.8 34.9 31.4 capture higher market share for its products.
RoCE (%) 35.8 34.2 30.9  Its EBITDA margin is likely to remain robust at ~49%, with the gross margin at
RoIC (%) 74.1 76.2 74.4 ~70% over FY21–24 – as the company continues to improve the yield of its
Payout (%) 15.0 15.0 15.0 products and processes. In view of its dominating product market share and
Valuations ability to sustain the highest margins in the industry, we value the company at
P/E (x) 64.9 50.4 42.3 50x FY24E EPS (as the company commands ROIC of ~75%) to arrive at Target
P/BV (x) 20.6 15.3 11.7 Price of INR1,700/share. We initiate coverage on CSTL with a Buy rating.
EV/EBITDA (x) 49.7 38.2 31.3
 In our recently-released sector initiating report “Genie is out”, we had
Div. Yield (%) 0.2 0.3 0.4
highlighted that normally, companies with a higher proportion of specialty
FCF Yield (%) 1.0 1.4 1.8
chemicals command richer valuations.

Shareholding pattern (%)

Largest manufacturer of multiple specialty chemicals
As On June-21 Jul-21
Promoter 94.6 78.5  CSTL is the largest producer of Monomethyl ether of hydroquinone
Others 5.4 21.5 (MEHQ), Butylated Hydroxy Anisole (BHA), and 4-Methoxy Acetophenone
(4-MAP) globally. Furthermore, it has backward integrated into
Details of the Offer for Sale (OFS) producing Anisole, a key raw material, and has even become the largest
Proceeds
Shareholders from the OFS
producer of Anisole globally. CSTL is also one of the top three global
(INR million) producers of the remaining three products.
Promoter Selling  MEHQ is CSTL’s largest selling product (48% of total revenue); the
5,536
Shareholders
Other Selling
company holds a 52% global market share, which it expects to increase
9,931
Shareholders further to ~65% over the next 2–3 years.
Total 15,466  Most players in the Indian Specialty Chemicals industry view China as a
Source: RHP competitor. However, CSTL rather sees the Chinese market as an
opportunity as it supplies its products to this country – which
contributed ~37% to its revenues in FY21 and is the biggest market for
the company.

30 August 2021 3
 Our recent sector initiation R&D – a key differentiator
report on specialty chemicals
 The company started producing Anisole through the liquid phase technology (an
unclean and inefficient route) in 2017. Through its in-house R&D, the company
developed a greener route, vapor phase technology in 2018 (making it the only
company globally to manufacture via this process).
 Continuing its pursuit of process innovation through catalytic technology, CSTL
has forayed into the Hindered Amine Light Stabilizers (HALS) series.
Applications for the same are in diverse end industries such as Polymerization
Inhibitor, Water Treatment, Paint, Coatings, etc. The estimated global market
size for HALS is USD1b and CSTL would be the first company to develop HALS
series in India.
 While many companies in the space only have a single R&D center, CSTL has a
separate one for all its manufacturing facilities. It is also setting up an R&D
center at its third unit, where it proposes to install R&D equipment to synthesize
new products and certain catalysts under development.

Indian Specialty Chemicals to Focus on process innovation to aid margins

benefit from China+1 strategy  The introduction of (cost-effective) vapor phase technology and continued
process innovation aided EBITDA margin improvement to 50.5% in FY21 from
33% in FY16 - resulting in an EBITDA CAGR of 40% over FY16–21 (a 53% CAGR
in the last three years, led by the commissioning of the Anisole capacity in FY18).
 Unit-III (which would get commissioned in phases over FY22) would focus on
Anisole (already commissioned in 1QFY22) and certain performance chemicals
(although, the management has not provided any capacity bifurcation).
 Unit-III would also have the first line of production dedicated to HALS series
(expected to be commercialized by 2HFY23), while additional production lines
would be installed in Unit-IV.
 Additional capacity expansion would drive further growth for the company,
accompanied by low margin volatility, due to:
 Challenges faced in terms of competing on the cost and margins fronts, leading
to likely consolidation or shutdowns at units globally
 Further downstream/forward integration by CSTL into high-value products,
which would offset any potential threat to its current high margins

Expansion of capacities for existing products to drive growth

 The global market for MEHQ, Anisole, and AP is expected to grow approximately
~6% over the next five years. For BHA, 4-MAP, and DCC, the market is expected
to grow by ~4% over the same period.
 As we deep-dive into CSTL’s segmental analysis below (and a review of its
product offerings), we expect continued market share gains on the back of its
developed expertise (despite mid-single digit market growth for its products).
 In order to meet the growing demand from end user industries, CSTL is in the
process of expanding its capacities by at least 20,000mt at Unit-III (in addition
to its two existing units at Kurkumbh with total capacity of 29,900mt). Its
capacity utilization at end-FY21 was ~72%.
 CSTL has also acquired land for Unit-IV, which would focus on stabilizers and
other downstream intermediates for Pharma and Agro.

30 August 2021 4
 Valuation and view – initiate with Buy
 CSTL is an integrated player for its key products and is likely to grow at a faster
rate than the industry due to its cost advantage as well as the introduction of
new products. On this consideration, we forecast a revenue/EBITDA/PAT CAGR
of 23%/22%/22% over FY21–24.
 CSTL is likely to generate FCF of INR6.4b over FY22–24E, with capex of INR3b
planned over this period (INR1.5b each for units III and IV) – thus funding its
capex purely via internal accruals and remain net cash going forward as well.
 CSTL has guided for a dividend payout policy of ~15% in view of its better cash
generation. It also completed buyback of equity share worth INR491m in FY20.
 The key risks to our recommendations are (a) the lack of innovation in future –
which has helped CSTL differentiate itself from others until now, (b) rising prices
of key raw materials such as Phenol, which could suppress its gross margins, (c)
any adverse ruling on the usage of any of its key products, which could affect
global demand and, in turn, sales.
 We value the company at 50x FY24 EPS (as it commands ROIC of ~75%) to arrive
at Target Price of INR1,700/share and recommend a Buy rating on the stock.

Products manufactured at CSTL’s manufacturing facilities

Stabilizer and other
Manufacturing Facility MEHQ Guaiacol BHA 4-MAP DCC AP Anisole Catalyst
intermediates
Unit I Yes Yes Yes Yes Yes Yes
Unit II Yes Yes Yes Yes Yes Yes
Unit III Yes Yes Yes Yes
Unit IV Yes
Source: Company, MOFSL

Focus on R&D and innovation has led to new product launches on a consistent basis
Calendar year Event
2021  R&D breakthrough into the Hindered Amine Light Stabilizers (HALS) series
2020  Commenced manufacturing DCC
 Started manufacturing Anisole using vapor phase technology
2018
 Commenced manufacturing AP
2017  Commenced manufacturing Anisole using liquid phase technology
2014  Commenced manufacturing BHA
2011  Commenced manufacturing 4 MAP
2009  Commenced manufacturing MEHQ and Guaiacol
Source: Company, MOFSL

30 August 2021 5
 30 August 2021
Company Update | Sector: Telecom

Bharti Airtel
BSE SENSEX S&P CNX
56,125 16,705
CMP: INR594 TP: INR720 (+21% ) Buy
Bharti approves INR210b right issue
Contours of the issue
The right issue will be at INR535/share, at a 1:14 ratio, implying a 7% equity
Bloomberg BHARTI IN dilution. It is at a mere 10% discount to its CMP, with limited incentive for
Equity Shares (m) 5,456 existing holders to subscribe if the stock falls. The timelines are not
M.Cap.(INRb)/(USDb) 3268.6 / 44.4 mentioned, but ~25% will be paid upfront and the rest will be called as per
52-Week Range (INR) 644 / 394 requirement over the next 36 months. Utilization of the issue proceeds has
1, 6, 12 Rel. Per (%) 3/-8/-27
not been disclosed. This is the third fund raising round in the last three
12M Avg Val (INR M) 10364
Free float (%) 44.2 years after it raised a cumulatively INR420b in FY20 (37% dilution) through
a successive issuance of rights, QIP, and FCCB. Including the upcoming
Financials & Valuations (INR b)
Y/E March FY21 FY22E FY23E rights issue, it will be a cumulative 46% dilution in less than three years.
Net Sales 1,006 1,127 1,287
EBITDA 454 542 632 Capital allocation has been a mixed bag
Adj. PAT -7 28 53
EBITDA Margin (%) 45.1 48.1 49.1
 Proactive or too early? The proactive capital raise (including the
Adj. EPS (INR) -1.3 5.1 9.7 previous rounds) could be partly justified as it ensures Bharti is well
EPS Gr. (%) -82 -489 91 funded for: a) targeting any large scale opportunity in the ongoing
BV/Sh. (INR) 107 112 122
market consolidation, b) competing with deep pocketed peer: RJio, and
Ratios
Net D:E 2.5 2.3 1.4 c) creating war chest for 5G technology upgrade. The gradual 36 month
RoE (%) -1.1 4.6 8.3 issuance indicates that there may not be any significant immediate
RoCE (%) 12.8 7.0 9.4 requirement. Given its non-core investments in Indus Tower and DTH in
Div. Payout (%) 0.0 0.0 0.0
Valuations the last one year, there is a risk of a non-core investment.
EV/EBITDA (x) 10.4 8.5 6.9  Last three years capital raises created a war chest: The last couple of
P/E (x) NM 113 59 fund raises was carried out in the backdrop of intense competition in
P/BV (x) 5.3 5.1 4.7
Div. Yield (%) 0.0 0.0 0.0
the market and at a period of high leverage. The proactive fund raise
FCF Yield (%) 3.1 4.1 9.1 certainly helped it to compete aggressively in a hypercompetitive
market environment, winning nearly 500bp market share, with steady
Shareholding pattern (%)
4G subscriber growth. Core net debt reduced by 22% to INR883b, with
As On Jun-21 Mar-21 Jun-20
Promoter 55.9 55.9 56.2 a net debt-to-EBITDA of 2.9x.
DII 20.6 20.4 18.4  High capex and investments: Post dilution (since the last one year), the
FII 18.2 18.6 20.2 addition of AGR payment, along with aggressive capex/investment, has
Others 5.3 5.2 5.2 again increased its core net debt to INR1,265b (a 43% jump in the last
FII Includes depository receipts one year), with a net debt-to-EBITDA of 3x, offsetting the strong (~40%)
growth in last one year. Part of this increase in leverage was
Stock performance (one-year)
uncontrollable due to INR440b AGR liabilities and intensive capex to
Bharti Airtel
Sensex - Rebased meet data demand and win market share. But the: a) INR39b
780 investment in the Indus Tower and DTH business to buy back Warburg
660 Pincus’ stake (along with the INR22b equity issuance), and b) the high
540 INR180b spectrum investment could be controlled at a time when there
420
were just three participants in the auction.
300
Aug-20

Oct-20

Apr-21
Dec-20
Feb-21

Aug-21
Jun-21

30 August 2021 6
  Limited deleveraging possibility: We see limited chance of any debt repayment
in the immediate future, given that majority of Bharti’s debt is attributed to
deferred spectrum and AGR liability, apart from some components of low
interest rate bonds.

Lack of clarity surprising, unlike historically

This capital raise is surprising as the management in its last few calls stated that its
leverage and liquidity position is comfortable and self-sustainable, with healthy FCF
generation in all verticals, thus indicating no additional capital requirement.
Historically, the management has given a very clear capex outlook, with a yearly
guidance. In fact, tracing back to the peak capex intensity in FY16, the management
announced a three-year capex plan called ‘project leap’, providing detailed clarity
about its capex plans.

Large scale opportunity in the next 2-4 quarters; Bharti well placed to gain;
Maintain Buy
 With concerns over VIL’s survival, BHARTI could gain disproportionately from
VIL’s significant (~25%) subscriber share, and offering incremental
revenue/EBITDA of INR177b/INR89b, i.e. 16%/18% growth, or the equivalent of
a 20% tariff hike.
 This is incremental from a favorable mix driven 6-8% ARPU increase and organic
subscriber growth, which could drive 10-12% revenue growth and over 15%
EBITDA growth organically in the Wireless business.
 This could drive double-digit RoCE growth and strong FCF generation. In the last
six quarters, Bharti has gained ~500bp revenue market share, driving ~40%
EBITDA growth.
 The unexpected capital raise may cause a negative reaction in the short term,
but we see a good earnings growth opportunity over the next 12 months. We
value BHARTI on an FY23E basis, assigning an EV/EBITDA of 11x to its India
Mobile business and 5x to its Africa business, arriving at a SoTP-based TP of
INR720.

30 August 2021 7
 30 August 2021

India Strategy
BSE Sensex: 56,125 S&P CNX: 16,705

Vaccination drive gathers momentum

Expected to improve further in Sep’21
 India’s anti-covid vaccination drive has gathered good momentum in August’21.
In-fact, on 27th Aug’21, India managed to cross the threshold of administering
over 10m vaccine doses in a single day for the first time. In Aug’21, India has
managed to administer, on an average, 5.9m vaccine doses/day as compared to
4.3m doses/day in Jul’21. Overall, now 486m people have received at least one
dose of the vaccine. Of this, 143m persons are now fully vaccinated (i.e. they
have received both doses of vaccine).
 The spread of the pandemic appears to have been contained as the number of
active cases are currently around 366k, except for a few states like Kerala,
Maharashtra, and West Bengal, which are contributing 80% of the total active
cases in India. Daily new cases have fallen from a peak of 400k cases per day in
May’21 to ~40k cases/day in Aug’21. The positivity rate continues to remain
below the 5% threshold and currently stands ~2.1%.
 Major states have started reopening up schools, malls, and other recreation
facilities, with the focus now shifting to supporting economic growth and
normalizing lives, as the number of cases continues to remain under control.
Vaccine manufacturers have indicated higher availability from Sep’21 onwards
(refer here), which is likely to result in ramping up of the vaccination drive. With
the approval of Zydus Cadila’s vaccine (ZyCov-D), it would open up another age
segment (12-18 years) for vaccination from Oct’21 onwards.

Around 486m persons have been partially vaccinated, of Seven out of the top 10 days of vaccine doses administered
which 143m are now fully vaccinated were in Aug’21
First Dose Administered Total doses administered (in m) Daily doses administered (in m)
Second dose administered 10.7
486.2

9.3 8.9 8.6 8.4 8.3

361.3

7.8 7.7 6.9 6.7

272.5
168.4

143.6
125.4

101.8
58.1
55.2

43.4
26.6
11.1

8.7
3.1

2.4
0.0
31'Jan'21

28'Feb'21

31'Mar'21

30'Jun'21

21'Jun'21

23'Jun'21

26'Jun'21
30'Apr'21

31'May'21

31'Jul'21

28'Aug'21

27'Aug'21

06'Aug'21

16'Aug'21

26'Aug'21

25'Aug'21

28'Aug'21

14'Aug'21

Source: CoWIN, MOFSL Source: CoWIN, MOFSL

30 August 2021 8
 Average daily vaccination doses administered rises to 7m Second dose administered picks up from an average of 1m
doses/day from 5m at the start of Aug’21 doses/day to 2m at end of Aug’21
Vaccination: seven day moving average
Vaccination: seven day moving average
7.0 First Dose Second dose

5.6
6.4 6.1

5.0
4.8
5.0 5.3 5.4

4.0
4.0
4.2 4.1 4.0

3.5
3.1
3.6

2.9
2.8
3.1 3.3

2.7
2.6
2.5
2.4 2.8

2.3

2.0
2.2 2.0 2.0

1.5
1.5
1.4

1.4
1.3
1.3
1.3
1.1
1.3

0.8
0.4
0.3
0.2
05'Jun'21
12'Jun'21
19'Jun'21
26'Jun'21
01'May'21
08'May'21
15'May'21
22'May'21
29'May'21

03'Jul'21
10'Jul'21
17'Jul'21
24'Jul'21
31'Jul'21

05'Jun'21
12'Jun'21
19'Jun'21
26'Jun'21
07'Aug'21
14'Aug'21
21'Aug'21
28'Aug'21

03'Jul'21
10'Jul'21
17'Jul'21
24'Jul'21
31'Jul'21
07'Aug'21
14'Aug'21
21'Aug'21
28'Aug'21
Source: CoWIN, covid19india.org, MOFSL Source: CoWIN, covid19india.org, MOFSL

Uttar Pradesh, Maharashtra, and Gujarat have administered the highest dosage in India
States Doses administered
Uttar Pradesh 7,04,40,918
Maharashtra 5,70,39,029
Gujarat 4,54,89,901
Madhya Pradesh 4,53,90,951
Rajasthan 4,26,47,282
Karnataka 4,07,28,915
West Bengal 3,91,39,256
Bihar 3,52,81,659
Tamil Nadu 3,12,50,471
Andhra Pradesh 2,87,49,800
India 62,98,30,818
Source: CoWIN, MOFSL as on 28 Aug’21

Monthly new cases have been declining post May’21 Active cases have seen a marked reduction
Monthly new cases (thousands) Total Active Cases (th)
3,669
9,009
6,944

Thousands

1,902
2,621

2,237
1,995

1,871

941
786
1,244
1,209

1,124

586
570
565

529
454

418
366
995
894

254
220

169
165
459
351

93

Aug'20 Oct'20 Dec'20 Feb'21 Apr'21 Jun'21 Aug'21 May'20 Aug'20 Nov'20 Feb'21 May'21 Aug'21

Source: covid19india.org, MOFSL. As on 27th Aug’21 Source: covid19india.org, MOFSL. As on 27th Aug’21

30 August 2021 9
 Positivity rate is near 2%, below the 5% threshold Substantial drop in fatalities from the peak
Daily new cases ((th),7 day mov. Avg.)
Monthly fatalities (in th)
500 Positivity rate (7 day avg.) 24

120
375 18

250 12

117

68
58

388
330

246
125 6

58

49
43

41
38

37
36
143
24
15
13
11

33
29

24
23
0 0

19

15

14
12
12
12-Apr-21
26-Apr-21
10-May-21
24-May-21

05-Jul-21
19-Jul-21
01-Feb-21
15-Feb-21
01-Mar-21
15-Mar-21
29-Mar-21

02-Aug-21
16-Aug-21
27-Aug-21
07-Jun-21
21-Jun-21

5
5
4

3
May'20 Aug'20 Nov'20 Feb'21 May'21 Aug'21

Source: covid19india.org, MOFSL Source: covid19india.org, MOFSL

Kerala, Maharashtra, and Kerala contribute 80% of total At the end of Mar’21, Maharashtra was leading the active
active cases case count
Active cases Others Others Active cases as of 31st Mar'21
3% Maharashtra
West Bengal West 15%
15%
15% Bengal
Chhattisgarh 1%
Karnataka
4%
Tamil Nadu 5%
Tamil Nadu Maharashtra
5%
3% Uttar 61%
Andhra
Gujarat Pradesh
Pradesh
2% 2%
4% Andhra
Pradesh
1%
Rajasthan
Kerala
2%
Kerala 4% Karnataka
53% 5%

Source: covid19india.org, MOFSL. As on 27th Aug’21 Source: covid19india.org, MOFSL

30 August 2021 10
 Sector Update | 30 August 2021

Automobiles
“While there are clear
PV wholesales impacted by semiconductor shortage
green shoots visible on the e-2W continues to see higher inquiries; Tractor demand softens
demand front, semi-  Aug’21 demand reflects initial signs of recovery in the trailing segments (2W and
conductor shortages could CV). While PV remains strong, Tractor demand has seen seasonal softening.
hit production of Maruti's  Our interaction with leading industry channel partners reflects optimism around
entire range of vehicles.” the upcoming festive season. PV demand has sustained, while 2W demand has
–Shashank Srivastava, ED, shown some signs of recovery, though there is a healthy level of inquiries for e-
Sales and Marketing, MSIL
scooters. M&HCV demand has shown initial signs of recovery. Agricultural
demand in the Tractor segment has slowed due to seasonality, while
commercial demand is picking up slowly.
 Aug’21 2W wholesale volumes are estimated to decline 2.9% YoY and Tractor
7% YoY. On the other hand, PV is estimated to grow 10.6% YoY, CV by 60% YoY
(LCV by 29% YoY and M&HCVs by 129% YoY), and 3W by 30% YoY.
 2W: 2W showed some signs of demand recovery on an MoM basis. Higher fuel
prices are restricting the pace of recovery, consequently driving customers’
interest in e-scooters. This is supported by the excitement around new products
as well as subsidies offered through various EV policies. Inventory in the system
stands at around 45–60 days. We expect wholesales for BJAUT 2W to grow 2.5%
YoY and for TVS by 6.4%YoY. HMCL would decline ~10% YoY and RE by 5% YoY.
The semiconductor shortage is impacting >150cc segment volumes.
 PV: PV has continued its strong demand momentum post the lifting of the
lockdown. However, supplies were impacted by a semiconductor shortage, with
supplies expected to get tighter in Sep’21. Inquiry levels are healthy, and OEMs
have a strong order book. The recently launched XUV700 by M&M has created
quite a buzz. Demand for CNG vehicles remains strong, benefitting from surging
fuel prices and the increased penetration of CNG in newer cities. Inventory in
the system is around 10–20 days. Volumes are expected to grow 2%/35%/30%
YoY for MSIL/TTMT/MM’s PV segment.
 CV: Demand has started showing initial signs of recovery with increasing freight
availability. Infrastructure demand is returning as the monsoons have
weakened. LTV is stable at 85–90% as financiers are fairly aggressive in funding
any demand from large fleet operators, but are very stringent in funding small
fleet operators. E-commerce activity continues to support LCV demand.
Inventory in the system is moderately higher than normal levels of 30 days. We
expect AL’s wholesales to grow 72% YoY (90% YoY for M&HCV) and that for
TTMT’s CV to grow 57% YoY (165% YoY for M&HCV).
 Tractor: Tractor agricultural demand has slowed MoM due to the seasonality
effect. However, commercial demand is picking up slowly. Inventory in the
system is around 30 days. We expect Tractor volumes for MM/ESC to decline
5%/14%YoY as inventory has been higher v/s last year.
 Valuation and view: Aug’21 felt the heat of the semiconductor shortage, which
is expected to worsen next month. Current valuations largely factor in sustained
recovery (our base case), leaving a limited margin for safety from any negative
surprises. We prefer 4W over 2W – as PV is the least impacted segment

30 August 2021 11
 currently and offers a stable competitive environment. We expect the CV cycle
to recover and gain momentum towards 2HFY22. We prefer companies with: a)
higher visibility in terms of demand recovery, b) a strong competitive
positioning, c) margin drivers, and d) balance sheet strength. MSIL and MM are
our top OEM picks. Among the auto component stocks, we prefer BHFC and
APTY. We prefer TTMT as a play on global PVs.

Snapshot of volumes for Aug’21

YoY MoM
Residual Residual FY22 YTD
YoY
MoM FY22 FY21 (%) FY22 Gr. Growth Monthly Monthly
Company Sales Aug-21 Aug-20 (%) Jul-21
(%) chg YTD YTD chg estimate (%) (%) Run rate Run rate
chg
Maruti Suzuki 1,26,9591,24,624 1.9 1,62,462 -21.9 6,43,035 3,09,287 107.9 18,88,856 29.5 8.4 1,77,974 1,28,607
LCVs 2,109 2,292 -8.0 2,768 -23.8 8,933 5,713 56.4 39,309 33.0 27.4 4,340 1,787
Vans 9,388 9,115 3.0 10,057 -6.6 41,228 23,036 79.0 1,35,554 29.0 15.0 13,475 8,246
Mini Segment 17,935 19,709 -9.0 19,685 -8.9 84,860 49,420 71.7 2,81,355 24.4 11.2 28,071 16,972
Compact (incl Dzire Tour) 61,435 63,335 -3.0 72,996 -15.8 3,01,846 1,49,991 101.2 9,28,724 25.1 5.9 89,554 60,369
Mid Size - CIAZ 856 1,223 -30.0 1,450 -41.0 4,824 3,271 47.5 16,207 17.0 7.6 1,626 965
UVs 25,236 21,030 20.0 34,282 -26.4 1,24,601 53,607 132.4 3,31,461 35.1 7.8 29,551 24,920
Domestic 1,16,9591,16,704 0.2 1,41,238 -17.2 5,66,292 2,85,038 98.7 17,32,611 27.2 8.3 1,66,617 1,13,258
Export 10,000 7,920 26.3 21,224 -52.9 76,743 24,249 216.5 1,56,245 62.5 10.6 11,357 15,349
Mahindra & Mahindra 65,854 54,884 20.0 70,212 -6.2 3,22,843 2,01,272 60.4 8,45,281 19.6 3.3 74,634 64,569
UV (incl. pick-ups) 38,892 29,917 30.0 40,407 -3.7 1,62,214 84,852 91.2 4,38,831 34.0 14.0 39,517 32,443
LCV & M&HCV 505 202 150.0 428 18.0 1,801 461 290.7 6,369 49.1 19.9 653 360
Three-Wheelers 3,222 307 949.5 2,148 50.0 8,435 442 1808.4 31,403 53.0 14.4 3,281 1,687
Tractors 23,235 24,458 -5.0 27,229 -14.7 1,50,393 1,15,517 30.2 3,68,678 4.0 -8.7 31,184 30,079
Tata Motors 53,210 36,502 45.8 54,119 -1.7 2,22,113 89,263 148.8 6,92,478 42.7 18.7 67,195 44,423
HCV's 10,770 4,064 165.0 7,813 37.8 37,300 9,630 287.3 1,41,497 56.9 29.4 14,885 7,460
LCV's 17,281 13,825 25.0 16,035 7.8 64,744 31,423 106.0 2,12,569 23.1 4.7 21,118 12,949
CV's 28,051 17,889 56.8 23,848 17.6 1,02,044 41,053 148.6 3,54,066 34.7 13.7 36,003 20,409
Cars 12,444 11,740 6.0 15,497 -19.7 61,143 31,548 93.8 1,73,924 28.0 8.0 16,111 12,229
UV's 12,715 6,873 85.0 14,774 -13.9 58,926 16,662 253.7 1,64,488 89.8 50.8 15,080 11,785
Hero MotoCorp 5,26,0105,84,456 -10.0 4,54,398 15.8 20,04,89716,63,630 20.5 65,82,808 13.7 10.9 6,53,987 4,00,979
Bajaj Auto 3,70,4403,56,199 4.0 3,69,116 0.4 17,45,57010,55,134 65.4 48,65,865 22.5 6.9 4,45,756 3,49,114
Two-Wheelers 3,28,9473,21,058 2.5 3,30,569 -0.5 15,58,821 9,59,543 62.5 42,99,738 19.2 3.6 3,91,560 3,11,764
Three-Wheelers 41,493 35,141 18.1 38,547 7.6 1,86,749 95,591 95.4 5,66,127 54.2 39.8 54,197 37,350
Domestic 1,73,0351,85,879 -6.9 1,67,273 3.4 6,97,445 5,36,118 30.1 23,37,739 21.8 18.6 2,34,328 1,39,489
Exports 1,97,4051,70,320 15.9 2,01,843 -2.2 10,48,125 5,19,016 101.9 25,28,126 23.1 -3.6 2,11,429 2,09,625
Ashok Leyland 10,897 6,325 72.3 8,650 26.0 37,534 14,915 151.7 1,58,306 57.2 40.8 17,253 7,507
M&HCV 4,919 2,589 90.0 3,822 28.7 17,791 5,316 234.7 87,390 68.7 49.7 9,943 3,558
LCV 5,978 3,736 60.0 4,828 23.8 19,743 9,599 106 70,917 45.0 30.2 7,311 3,949
TVS Motor 3,09,7082,87,398 7.8 2,78,855 11.1 12,46,321 8,07,075 54.4 37,37,691 22.5 11.0 3,55,910 2,49,264
Motorcycles 1,43,8541,19,878 20.0 1,38,772 3.7 6,87,915 3,45,247 99.3 17,99,560 34.1 11.6 1,58,806 1,37,583
Scooters 91,396 87,044 5.0 74,351 22.9 3,05,182 2,47,413 23.3 11,05,045 15.0 12.1 1,14,266 61,036
Mopeds 59,758 70,304 -15.0 49,605 20.5 1,83,340 1,83,782 -0.2 6,64,522 6.2 8.9 68,740 36,668
Three-Wheelers 14,700 10,172 44.5 16,127 -8.8 69,884 30,633 128.1 1,68,564 36.4 6.1 14,097 13,977
Domestic 1,98,5432,19,051 -9.4 1,75,722 13.0 7,03,918 5,95,869 18.1 24,38,763 12.3 10.0 2,47,835 1,40,784
Exports 1,11,165 68,347 62.6 1,03,133 7.8 5,42,403 2,11,206 156.8 12,98,927 47.7 13.2 1,08,075 1,08,481
Eicher Motors
Royal Enfield 47,637 50,144 -5.0 44,038 8.2 2,15,315 1,47,747 45.7 7,76,721 26.9 20.9 80,201 43,063
VECV 5,227 2,477 111.0 4,271 22.4 15,304 6,834 123.9 57,715 39.9 23.2 6,059 3,061
Domestic LMD 3,346 1,673 100.0 2,579 29.7 8,424 3,857 118.4 25,116 -6.0 -26.9 2,385 1,685
Domestic HD 867 354 145.0 839 3.4 2,936 1,024 186.7 7,714 6.0 -23.6 683 587
Domestic Buses 196 163 20.0 135 44.9 573 565 1.3 2,333 -74.2 -79.3 251 115
VTI 118 37 220.0 78 51.8 361 160 125.9 1,080 -2.4 -24.1 103 72
Domestic 4,527 2,227 103.3 3,631 24.7 12,294 5,606 119.3 36,243 -17.9 -37.9 3,421 2,459
Exports 700 250 180.0 640 9.4 3,010 1,228 145.1 5,025 10.0 -39.7 288 602
Escorts 6,250 7,268 -14.0 6,564 -4.8 38,749 30,740 26.1 1,11,011 4.0 -4.9 10,323 7,750

30 August 2021 12
 Comparative valuations
Rating Mcap CMP TP P/E (x) EV/EBITDA (x) PB (x) FY23 Yield (%) EPS CAGR (%)
Auto OEM's (INR b) (INR) (INR) FY20-23E
FY22E FY23E FY22E FY23E FY22E FY23E Div FCF
Bajaj Auto Neutral 1,070 3,699 4,250 18.9 16.3 14.1 11.5 4.1 4.0 5.1 5.6 8.0
Hero MotoCorp Buy 534 2,674 3,400 15.0 12.4 8.6 6.9 3.3 3.0 5.0 7.7 12.1
TVS Motor Neutral 243 511 622 20.4 15.6 11.0 8.6 4.7 3.8 1.1 6.5 36.0
Eicher Motors Buy 703 2,573 3,250 33.0 21.2 24.1 16.4 5.4 4.5 1.0 5.1 21.9
Maruti Suzuki Buy 1,995 6,606 8,200 35.9 22.0 21.9 13.6 3.6 3.2 1.8 2.9 17.5
M&M Buy 926 775 900 19.9 17.2 12.7 11.2 1.2 1.1 1.3 4.9 14.5
Tata Motors Buy 1,094 286 400 90.1 8.2 4.7 2.8 1.9 1.6 0.4 21.6 LTP
Ashok Leyland Buy 353 120 166 52.8 16.5 20.0 9.3 4.8 4.0 1.7 10.3 84.0
Escorts Neutral 165 1,347 1,270 16.1 16.1 13.8 13.8 2.3 2.1 0.5 3.5 24.4
Auto Ancillaries
Bharat Forge Buy 340 729 965 33.3 23.7 18.5 14.0 5.5 4.6 0.9 5.1 51.8
Exide Industries Buy 134 158 213 15.4 11.7 8.1 6.4 1.8 1.6 2.0 7.3 10.8
Amara Raja Neutral 117 683 820 18.9 14.9 9.8 7.7 2.5 2.3 2.2 3.7 5.8
BOSCH Neutral 402 13,648 16,650 28.3 22.9 20.5 15.9 3.7 3.3 1.0 2.4 12.1
Endurance Tech Buy 239 1,697 1,950 35.0 26.1 18.0 14.1 5.9 5.1 1.0 2.9 19.5
Motherson Sumi Buy 678 215 285 27.7 18.3 8.1 5.8 4.7 4.0 1.5 7.9 46.8
Mahindra CIE Buy 86 226 295 14.5 12.7 8.3 7.0 1.6 1.5 1.3 6.5 37.1
CEAT Buy 52 1,284 1,775 17.3 10.6 7.5 5.5 1.5 1.3 0.9 7.1 45.7
BIL Neutral 443 2,291 2,600 28.7 24.1 19.1 15.5 6.2 5.2 1.1 2.4 38.2
MRF Neutral 326 76,929 83,732 26.1 19.9 9.8 7.9 2.2 2.0 0.3 2.2 7.3
APTY Buy 120 209 290 11.6 9.0 5.4 4.3 1.0 0.9 2.2 11.9 66.7
Source: Company, MOFSL

30 August 2021 13
 In conversation

Blue Star: Bets on upcoming festive season after Onam sales

disappoint; B Thiagarajan, MD
 Room AC demand has been robust, have increased prices twice
 Onam sales this year were not all that great in Kerala due to higher COVID cases
 Q1FY22 sales were 50-55% of Q1FY2; Q2 sales at around 90% of Q2FY20 levels
 Tier-III, IV & V markets are holding up well
 Took price hike of 5-8% in January and 3-5% in April; will take another 3% price hike
in September
 Price hikes not mitigating margin pressure fully
 Company is facing cost pressure from raw material and container shortage

Canfin Homes: Housing finance industry in sweet spot; expects 18-

20% AUM growth in FY22; Girish Kousgi, MD & CEO
 Housing finance industry is in a sweet spot currently
 Pent-up demand has picked up
 Q2FY22 will be better than Q4FY21
 Next few quarters will be very good for company
 70:30 was salaries and non-salaried earlier; it is 18% for non-salaried now
 Will bring non-salaried back to 30% going ahead
 Margin will increase Q2FY22 onwards as the prices have improved

Balaji Amines: Speciality chemical industry gaining due to ‘China

Plus One’; D Ram Reddy, MD
 Commissioned methylamines plant recently
 DMF plant will be commissioned this FY
 DMF plant to cater to different areas like pharma, agrochemicals, dyes, paints
 Will come up with the acetonitrile plant next financial year
 Speciality chemical industry in India is gaining due to ‘China Plus One’
 Chemical companies in China are facing labour issues
 Will be able to do revenue of Rs 1800 crore in FY22
 Margin should be around 26% in FY22

30 August 2021 14
 TCI Express: 50% of contribution to sales comes from SMEs;
Chander Agarwal, MD
 Have undertaken a 3-4% price hike
 Capacity utilisation is currently at 86%
 Price hike going forward will depend on movement of diesel prices
 Expect strong growth QoQ in this quarter
 Fuel cost increases are passed straight to customers
 Will go back to 18% EBITDA margin in FY22
 Margins may improve if Government reduces fuel cost
 50% of contribution to sales comes from SMEs

J Kumar Infra: Will be able to maintain EBITDA margin in the

range of 14-16%; Kamal Gupta, MD
 Variation in commodity prices a concern; effort is to sustain margin
 Will be able to maintain EBITDA margin in the range of 14-16%
 Revenue growth would be robust in FY22
 Saw an exodus of 50-60% of labour in 2nd wave vs 80% in first wave
 Third wave will be less disruptive than 1st two waves of COVID-19
 In the process of bidding for Goregaon-Mulund project

30 August 2021 15
 Click excel icon
for detailed
valuation guide
Valuation snapshot

CMP TP % Upside EPS (INR) EPS Gr. YoY (%) P/E (x) P/B (x) ROE (%)
Company Reco (INR) (INR) Downside FY21 FY22E FY23E FY21 FY22E FY23E FY22E FY23E FY22E FY23E FY22E FY23E
Automobiles
Amara Raja Neutral 683 820 20 37.9 36.2 45.8 -2.1 -4.5 26.5 18.9 14.9 2.5 2.3 14.0 16.0
Apollo Tyres Buy 209 290 39 11.5 18.0 23.1 38.1 56.8 28.3 11.6 9.0 1.0 0.9 8.7 10.4
Ashok Ley. Buy 120 166 38 -1.0 1.8 6.7 -188.0 LP 279.5 68.6 18.1 4.9 4.1 7.3 24.8
Bajaj Auto Neutral 3699 4250 15 167.8 196.1 226.9 -6.8 16.8 15.7 18.9 16.3 4.1 4.0 22.2 25.1
Balkrishna Inds Neutral 2291 2600 14 60.9 79.7 94.9 22.7 30.8 19.0 28.7 24.1 6.2 5.2 23.5 23.5
Bharat Forge Buy 729 965 32 1.9 21.9 30.8 -78.5 - 40.3 33.3 23.7 5.5 4.6 17.6 21.2
Bosch Neutral 13648 16650 22 335.4 481.7 595.6 -20.6 43.6 23.6 28.3 22.9 3.7 3.3 13.7 15.2
CEAT Buy 1284 1775 38 114.3 74.0 121.2 100.2 -35.2 63.7 17.3 10.6 1.5 1.3 8.7 12.9
Eicher Mot. Buy 2573 3250 26 50.7 78.0 121.2 -24.3 54.0 55.4 33.0 21.2 5.4 4.5 17.4 23.1
Endurance Tech. Buy 1697 1950 15 36.0 48.6 64.9 -5.4 34.9 33.7 35.0 26.1 5.9 5.1 18.0 21.0
Escorts Neutral 1347 1270 -6 86.3 83.7 83.6 59.8 -3.0 -0.1 16.1 16.1 2.3 2.1 15.6 13.6
Exide Ind Buy 158 213 35 8.9 10.4 13.6 -10.0 16.3 31.0 15.2 11.6 1.8 1.6 11.8 13.8
Hero Moto Buy 2674 3400 27 148.4 178.2 215.6 -3.0 20.1 21.0 15.0 12.4 3.3 3.0 22.6 25.1
M&M Buy 775 900 16 33.8 38.9 45.1 12.8 15.1 15.8 19.9 17.2 2.4 2.1 12.5 13.1
Mahindra CIE Buy 226 295 31 2.8 15.6 17.7 -70.1 452.6 13.6 14.5 12.7 1.6 1.5 11.6 12.1
Maruti Suzuki Buy 6606 8200 24 145.3 187.7 304.7 -22.7 29.2 62.3 35.2 21.7 3.6 3.2 10.0 14.7
MRF Neutral 76929 83732 9 - 2,941.9 3,861.9 -10.2 -2.3 31.3 26.1 19.9 2.2 2.0 8.9 10.7
Motherson Sumi Buy 215 285 33 3.4 7.7 11.7 -8.2 127.8 51.5 27.7 18.3 4.7 4.0 18.2 23.6
Tata Motors Buy 286 400 40 0.6 3.2 34.7 -102.2 462.7 994.3 90.1 8.2 1.9 1.6 2.2 21.1
TVS Motor Neutral 511 622 22 12.9 25.2 32.9 -0.9 95.5 30.6 20.3 15.5 4.7 3.8 25.7 27.0
Aggregate 33.7 38.9 66.8 26.8 16.1 3.2 2.8 11.8 17.3
Banks - Private
AU Small Finance Buy 1293 1400 8 38.0 30.8 44.2 67.9 -19 43.5 42.0 29.3 5.7 4.7 14.4 17.6
Axis Bank Buy 753 925 23 22.4 45.1 60.9 271.0 101 35.2 16.7 12.3 2.0 1.8 12.8 15.2
Bandhan Bank Neutral 276 330 19 13.7 15.6 32.5 -36.5 14 108.5 17.7 8.5 2.3 1.9 13.8 24.9
DCB Bank Neutral 88 100 14 10.8 9.2 13.6 -0.7 -14.5 47.5 9.5 6.5 0.7 0.6 7.8 10.6
Equitas Hold. Buy 115 160 39 11.2 8.6 15.8 57.6 -23.9 85.0 13.5 7.3 1.1 1.0 8.3 14.2
Federal Bank Buy 78 110 41 8.0 9.3 12.5 2.8 16.9 33.7 8.4 6.3 0.9 0.8 11.3 13.8
HDFC Bank Buy 1549 1800 16 56.6 66.2 79.3 17.8 16.9 19.9 23.4 19.5 3.6 3.1 16.7 17.3
ICICI Bank Buy 700 835 19 24.2 30.8 39.0 97.0 27.2 26.7 22.7 18.0 2.9 2.5 13.8 15.3
IndusInd Buy 991 1200 21 39.9 65.0 94.3 -41.4 62.6 45.1 15.3 10.5 1.6 1.4 11.1 14.4
Kotak Mah. Bk Neutral 1716 1900 11 50.4 55.3 67.3 12.2 9.7 21.7 31.0 25.5 3.6 3.1 11.5 12.4
RBL Bank Buy 163 235 44 8.5 4.4 26.3 -14.6 -47.8 493.9 36.7 6.2 0.8 0.7 2.1 11.6
SBI Cards Buy 1091 1200 10 10.5 17.7 29.4 -25.3 68.8 66.2 61.7 37.1 13.2 9.9 23.6 30.5
Aggregate 31.2 29.0 30.5 23.1 17.7 3.1 2.7 13.5 15.3
Banks - PSU
BOB Buy 75 100 34 1.6 11.0 17.0 35.6 588.2 53.9 6.8 4.4 0.5 0.4 7.2 10.3
Indian Bank Buy 123 175 42 26.6 36.1 48.0 92.3 35.7 32.9 3.4 2.6 0.4 0.3 12.1 14.5
Punjab Natl.Bank Neutral 36 45 24 1.9 5.3 8.4 225.5 175.4 57.2 6.8 4.3 0.4 0.4 6.0 8.8
SBI Buy 412 600 46 25.1 39.0 50.4 13.3 55 29.3 10.6 8.2 1.2 1.1 13.1 14.6
Union Bank (I) Buy 34 55 61 4.5 7.9 11.8 -140.6 73 50.1 4.3 2.9 0.3 0.3 8.2 11.4
Aggregate 68.4 78 37 9 6.3 0.8 0.8 9.6 11.8
NBFCs
AAVAS Financiers Neutral 2442 2820 15 36.9 42.9 54.0 15.9 16.3 26.0 56.9 45.2 7.0 6.1 13.1 14.4
Aditya Birla Cap Buy 108 140 30 4.7 5.5 6.7 22.8 18.5 21.8 19.5 16.0 1.7 1.6 9.3 10.2
Bajaj Fin. Buy 6963 7700 11 73.5 117.7 168.6 -16.3 60.2 43.3 59.2 41.3 9.8 8.1 17.9 21.4
Can Fin Homes Buy 525 660 26 34.2 34.8 39.8 21.3 1.7 14.2 15.1 13.2 2.3 2.0 16.4 16.1
Cholaman.Inv.&F
Buy 524 650 24 18.5 21.5 29.4 44.0 16.5 36.7 24.4 17.8 3.8 3.2 17.0 19.7
n
HDFC Buy 2718 3290 21 54.5 63.7 71.6 10.8 16.9 12.4 42.7 38.0 4.1 3.8 12.8 13.0
HDFC Life Insur. Neutral 704 725 3 6.7 7.2 8.5 4.8 6.5 18.8 98.2 82.7 4.6 3.9 15.4 17.8
ICICI Pru Life Buy 656 700 7 6.7 6.7 8.0 -10.1 0.5 18.4 97.6 82.5 2.8 2.4 15.0 16.2
IIFL Wealth Mgt Buy 1507 1775 18 42.0 57.0 68.0 82.0 35.8 19.3 26.4 22.1 5.1 4.9 18.5 22.7
IndoStar Neutral 288 355 23 -17.3 14.4 19.6 -50.7 LP 35.7 19.9 14.7 0.9 0.9 4.7 6.1

30 August 2021 16
 Click excel icon
for detailed
valuation guide
Valuation snapshot

CMP TP % Upside EPS (INR) EPS Gr. YoY (%) P/E (x) P/B (x) ROE (%)
Company Reco (INR) (INR) Downside FY21 FY22E FY23E FY21 FY22E FY23E FY22E FY23E FY22E FY23E FY22E FY23E
L&T Fin Holdings Buy 81 110 35 3.8 5.9 8.2 -54.7 53.1 39.6 13.8 9.9 1.0 0.9 7.5 9.7
LIC Hsg Fin Buy 388 525 35 54.2 35.6 52.7 13.8 -34.3 48.1 10.9 7.4 0.9 0.8 8.9 11.5
Manappuram Fin. Buy 160 220 37 20.4 22.6 26.0 16.3 10.9 15.1 7.1 6.2 1.5 1.3 23.6 22.3
MAS Financial Buy 769 1000 30 26.3 28.2 32.6 -13.8 7.6 15.3 27.2 23.6 3.3 2.9 12.9 13.2
Max Financial Buy 1021 1250 22 11.0 14.1 18.0 -24.2 28.7 27.2 72.2 56.8 3.1 2.6 18.8 19.9
M&M Fin. Buy 156 175 13 2.7 5.6 19.2 -81.5 106.4 241.1 27.7 8.1 1.3 1.1 4.6 14.7
Muthoot Fin Buy 1493 1825 22 92.8 107.4 126.8 23.3 15.8 18.1 13.9 11.8 3.2 2.6 25.3 24.3
Piramal Enterp. Buy 2570 3100 21 62.6 107.9 130.5 -355.3 72.2 20.9 23.8 19.7 1.7 1.6 7.6 8.5
PNB Housing Neutral 650 760 17 55.3 56.8 71.6 43.8 2.7 26.1 11.5 9.1 1.1 1.0 10.3 11.8
Repco Home Fin Buy 291 440 51 46.0 46.6 56.3 2.6 1.4 20.7 6.3 5.2 0.8 0.7 13.0 13.8
SBI Life Insurance Buy 1184 1250 6 14.6 14.6 16.7 2.4 0.2 14.4 81.1 70.9 2.8 2.4 16.8 17.4
Shriram City
Buy 2055 2150 5 153.2 169.0 202.3 1.1 10.3 19.7 12.2 10.2 1.5 1.3 13.0 13.9
Union
Shriram Trans. Buy 1281 1600 25 98.3 92.3 129.9 -10.9 -6.1 40.8 13.9 9.9 1.3 1.2 10.6 12.9
Aggregate 12.7 23.1 28.5 28.7 22.3 3.4 3.0 11.7 13.5
Capital Goods
ABB Buy 1848 2000 8 11.9 20.5 29.0 -28.4 72.6 41.8 90.2 63.6 9.9 8.9 11.0 14.0
Bharat Elec. Buy 185 205 11 8.5 9.5 10.3 15.1 11.9 8.9 19.5 17.9 3.7 3.3 18.8 18.3
BHEL Sell 54 40 -26 -7.8 -2.0 1.2 84.5 Loss LP NM 44.7 0.7 0.7 -2.7 1.6
Cummins Sell 980 695 -29 21.4 25.2 27.7 -8.0 17.9 9.9 38.9 35.4 5.8 5.5 14.9 15.6
Engineers India Buy 71 95 35 5.4 6.1 7.0 -20.1 12.0 14.6 11.6 10.1 2.7 2.6 22.0 24.5
K E C Intl. Buy 402 500 24 21.5 23.4 31.1 -2.3 8.9 32.6 17.2 13.0 2.7 2.3 15.5 17.4
Larsen & Toubro Buy 1638 1950 19 82.5 64.9 80.4 21.2 -21.3 24.0 25.2 20.4 2.9 2.6 11.4 12.8
Siemens Neutral 2220 2050 -8 21.3 31.7 38.0 -32.6 49.0 19.9 70.0 58.4 7.6 6.9 10.9 11.9
Thermax Neutral 1374 1215 -12 22.0 30.7 40.4 16.5 39.9 31.5 44.7 34.0 4.4 4.1 9.9 11.9
Aggregate -28.3 59.2 30.3 32.0 24.6 3.1 2.9 9.8 11.7
Consumer
Durables
Blue Star Sell 769 730 -5 10.4 15.2 23.5 -31.9 45.8 54.4 50.6 32.8 7.7 6.9 15.3 21.1
CG Cons. Elec. Buy 460 530 15 8.4 9.7 11.4 20.7 14.8 18.1 47.6 40.3 12.6 10.6 26.6 26.4
Havells Neutral 1236 1120 -9 16.5 20.2 22.4 40.4 22.9 11.1 61.2 55.1 12.8 11.0 20.9 20.0
Orient Electric Buy 323 395 22 5.6 6.5 8.7 52.3 15.2 34.4 49.7 37.0 12.4 10.1 25.0 27.2
Voltas Neutral 985 1065 8 15.9 17.2 22.2 -5.1 8.5 29.0 57.2 44.3 6.0 5.5 10.5 12.3
Whirlpool India Buy 2009 2650 32 27.8 32.5 47.5 -25.9 16.9 46.1 61.8 42.3 8.0 6.9 13.0 16.4
Aggregate 9.5 18.1 23.3 56.2 45.6 9.6 8.3 17.0 18.3
Chemicals
Alkyl Amines Neutral 4237 3665 -14 57.9 59.0 73.7 57.0 1.9 25.0 71.9 57.5 21.6 17.1 33.5 33.1
Atul Neutral 8985 10000 11 218.0 258.8 290.0 -2.3 18.7 12.1 34.7 31.0 5.9 5.1 18.4 17.7
Deepak Nitrite Buy 2132 2350 10 56.9 69.4 78.2 27.0 21.9 12.7 30.7 27.3 9.2 7.2 34.4 29.6
Fine Organic Neutral 2843 3134 10 37.5 50.5 78.3 -31.0 34.7 55.2 56.3 36.3 10.3 8.6 19.5 25.8
Galaxy Surfact. Buy 3101 3620 17 85.2 91.0 103.9 31.1 6.7 14.2 34.1 29.8 7.1 6.0 22.7 21.9
Navin Fluo.Intl. Neutral 3850 4040 5 51.2 57.5 95.8 -37.3 12.4 66.5 66.9 40.2 10.0 8.3 16.0 22.6
NOCIL Buy 277 340 23 5.2 12.1 14.2 -34.0 133.4 17.1 22.8 19.5 3.3 3.0 15.1 16.1
Vinati Organics Buy 1789 2220 24 26.2 33.6 44.7 -19.3 28.4 32.9 53.2 40.0 10.1 8.4 20.6 22.9
Aggregate 3.5 20.4 21.5 39.2 32.3 8.2 6.8 20.8 21.0
Cement
Ambuja Cem. Neutral 410 385 -6 9.0 11.9 13.9 24.2 32.4 16.2 34.3 29.6 3.7 3.4 11.2 11.9
ACC Buy 2349 2480 6 78.4 112.2 116.8 8.5 43.1 4.1 20.9 20.1 3.1 2.7 15.6 14.4
Birla Corp. Buy 1300 1740 34 73.0 67.4 93.7 11.3 -7.7 39.1 19.3 13.9 1.7 1.5 9.1 11.6
Dalmia Bhar. Buy 2031 2480 22 54.8 59.7 79.2 377.1 8.9 32.7 34.0 25.7 2.8 2.5 8.4 10.2
Grasim Inds. Neutral 1459 1590 9 67.9 102.3 110.3 -23.1 50.5 7.9 14.3 13.2 2.1 2.0 5.5 5.2
India Cem Neutral 163 190 17 7.2 5.9 8.3 947.7 -18.2 41.1 27.6 19.6 0.9 0.8 3.2 4.4
J K Cements Buy 3124 3585 15 91.0 108.6 133.1 45.5 19.4 22.5 28.8 23.5 5.5 4.6 20.6 21.2
JK Lakshmi Ce Buy 712 800 12 33.5 35.0 43.8 48.7 4.2 25.3 20.4 16.3 3.4 2.9 18.2 19.4
Ramco Cem Neutral 986 1000 1 32.3 36.5 41.4 26.5 13.2 13.2 27.0 23.8 3.6 3.2 14.3 14.3

30 August 2021 17
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for detailed
valuation guide
Valuation snapshot

CMP TP % Upside EPS (INR) EPS Gr. YoY (%) P/E (x) P/B (x) ROE (%)
Company Reco (INR) (INR) Downside FY21 FY22E FY23E FY21 FY22E FY23E FY22E FY23E FY22E FY23E FY22E FY23E
Shree Cem Neutral 26892 28550 6 640.8 750.3 850.8 47.2 17.1 13.4 35.8 31.6 5.5 4.8 16.4 16.1
Ultratech Buy 7567 8770 16 190.4 237.5 305.7 31.0 24.7 28.8 31.9 24.8 4.1 3.8 14.5 16.4
Aggregate 16.6 28.6 17.7 24.7 21.0 3.3 2.9 13.2 14.0
Consumer
Asian Paints Neutral 3037 3070 1 33.4 36.4 45.4 15.4 8.9 24.8 83.4 66.8 20.9 18.9 26.1 29.7
Britannia Buy 3941 4370 11 76.8 71.4 88.3 31.0 -7.1 23.7 55.2 44.6 19.9 18.2 41.3 42.6
Colgate Neutral 1656 1770 7 38.1 39.8 42.2 26.8 4.5 6.1 41.6 39.2 38.6 38.6 92.8 98.4
Dabur Buy 609 715 17 9.6 10.2 12.7 11.0 6.8 24.0 59.5 48.0 13.2 11.9 22.9 26.1
Emami Buy 597 660 11 16.3 17.1 18.8 31.1 5.5 9.7 34.8 31.7 13.2 13.0 40.5 41.3
Godrej Cons. Buy 1054 1140 8 17.3 18.9 22.7 21.9 9.5 20.2 55.8 46.4 10.9 10.3 20.0 22.8
HUL Buy 2678 2840 6 34.8 38.4 47.5 11.5 10.4 23.7 69.7 56.3 13.3 13.3 19.0 23.6
ITC Neutral 206 225 9 10.6 12.2 14.4 -14.8 15.3 17.6 16.9 14.3 3.8 3.7 24.0 26.2
Jyothy Lab Neutral 159 168 6 5.8 5.1 6.3 28.7 -11.7 22.5 30.9 25.2 4.1 4.0 13.2 16.0
Marico Buy 525 635 21 9.0 10.0 11.8 10.4 10.9 18.7 52.6 44.3 14.9 14.0 33.0 32.5
Nestle Neutral 19954 18600 -7 217.4 239.7 276.2 7.6 10.2 15.3 83.3 72.2 93.9 92.0 113.6 128.6
Page Inds Neutral 30871 30100 -2 305.3 396.7 497.6 -0.8 29.9 25.4 77.8 62.0 35.7 33.2 45.8 53.5
Pidilite Ind. Neutral 2224 2150 -3 22.2 26.3 31.9 -7.3 18.7 21.2 84.6 69.8 17.2 14.6 22.0 22.6
P&G Hygiene Buy 13719 15530 13 156.1 224.2 295.8 13.4 43.6 31.9 61.2 46.4 56.6 50.4 96.9 115.0
Tata Consumer Buy 847 850 0 9.5 11.1 15.0 20.8 17.0 35.9 76.6 56.3 5.2 4.9 6.9 8.9
United Brew Sell 1448 1130 -22 4.6 16.3 21.6 -71.8 257.5 32.4 88.7 67.0 9.9 9.2 11.6 14.2
United Spirits Buy 701 800 14 6.4 11.1 14.6 -41.6 75.2 31.2 62.9 48.0 10.3 8.5 16.4 17.7
Varun Beverages Buy 852 920 8 7.5 14.2 23.9 -30.7 89.4 68.3 59.9 35.6 9.1 7.3 16.2 22.8
Aggregate 1.9 13.1 20.8 50.1 41.4 11.2 10.7 22.4 25.7
Healthcare
Alembic Phar Neutral 747 970 30 59.9 40.8 50.8 36.3 -31.9 24.4 18.3 14.7 2.6 2.3 15.4 17.0
Alkem Lab Buy 3887 4030 4 134.1 145.5 164.4 40.5 8.5 13.0 26.7 23.6 5.3 4.5 21.6 20.8
Ajanta Pharma Buy 2219 2780 25 73.9 80.3 97.9 44.6 8.6 21.9 27.6 22.7 5.5 4.7 21.7 22.4
Aurobindo Buy 710 900 27 54.0 56.3 62.8 9.9 4.2 11.6 12.6 11.3 1.7 1.5 14.0 13.8
Biocon Neutral 347 390 12 5.5 6.9 10.6 -10.6 25.4 52.5 50.1 32.8 5.1 4.6 10.5 14.7
Cadila Buy 551 670 22 19.8 24.3 25.4 34.8 22.5 4.6 22.7 21.7 3.3 2.9 16.5 14.3
Cipla Neutral 923 1000 8 30.0 35.4 39.9 52.7 18.1 12.7 26.1 23.2 3.6 3.2 13.8 13.6
Divis Lab Buy 4906 5750 17 75.6 103.5 135.4 54.4 36.9 30.9 47.4 36.2 11.6 9.5 26.8 28.8
Dr Reddy’s Neutral 4601 5200 13 143.6 191.3 218.1 9.3 33.3 14.0 24.0 21.1 3.8 3.3 16.8 16.6
Gland Pharma Buy 3927 4460 14 60.9 86.7 110.9 29.0 42.2 28.0 45.3 35.4 8.8 7.0 21.4 22.0
Glenmark Neutral 517 600 16 35.0 39.6 44.9 42.3 13.1 13.4 13.1 11.5 1.8 1.6 14.7 14.6
GSK Pharma Neutral 1516 1550 2 29.4 34.7 38.0 4.4 18.0 9.6 43.7 39.8 15.0 13.0 34.3 32.8
Granules India Buy 331 440 33 22.3 23.4 27.4 66.8 5.0 17.1 14.1 12.1 3.0 2.4 23.7 22.3
IPCA Labs Buy 2460 2400 -2 88.7 88.2 100.2 73.6 -0.6 13.6 27.9 24.6 5.5 4.6 21.6 20.5
Jubilant
Buy 622 830 34 54.1 48.8 56.2 -9.5 -9.8 15.0 12.7 11.1 1.8 1.6 15.0 15.0
Pharmova
Laurus Labs Buy 659 800 21 18.3 24.1 30.5 285.4 31.3 26.8 27.4 21.6 9.5 6.9 41.0 37.3
Lupin Neutral 940 1040 11 26.0 30.6 41.2 11.5 17.6 34.7 30.7 22.8 2.8 2.6 9.6 11.9
Solara Active
Buy 1632 2050 26 45.0 82.4 103.4 93.2 83.1 25.4 19.8 15.8 3.1 2.5 23.1 24.0
Pharma
Strides Pharma Buy 603 840 39 22.2 -8.1 38.3 45.9 PL LP NM 15.7 2.0 1.8 -2.7 12.3
Sun Pharma Buy 772 900 17 25.0 29.5 33.6 52.6 17.9 13.8 26.1 23.0 3.5 3.1 14.4 14.4
Torrent Pharma Neutral 3052 2800 -8 74.9 80.4 95.2 33.5 7.3 18.4 37.9 32.1 8.0 6.9 22.1 23.0
Aggregate 34.9 15.3 18.8 27.2 22.9 4.1 3.6 15.3 15.8
Infrastructure
Ashoka Buildcon Buy 99 160 62 14.6 14.1 15.8 5.5 -3.2 12.2 7.0 6.2 0.8 0.7 12.4 12.5
IRB Infra Neutral 166 150 -10 3.3 5.2 9.5 -82.3 55.6 84.1 32.0 17.4 0.8 0.8 2.6 4.7
KNR
Buy 319 330 3 9.0 12.5 17.5 24.1 38.8 39.9 25.5 18.3 4.1 3.3 17.3 20.1
Constructions
Aggregate 18.4 13.5 1.4 1.2 7.4 9.3
Media

30 August 2021 18
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for detailed
valuation guide
Valuation snapshot

CMP TP % Upside EPS (INR) EPS Gr. YoY (%) P/E (x) P/B (x) ROE (%)
Company Reco (INR) (INR) Downside FY21 FY22E FY23E FY21 FY22E FY23E FY22E FY23E FY22E FY23E FY22E FY23E
PVR Neutral 1324 1500 13 -91.6 -81.9 28.6 -384.7 Loss LP NM 46.2 6.0 5.3 -31.4 12.2
Sun TV Buy 482 620 29 38.6 45.3 48.0 10.8 17.5 5.9 10.6 10.1 2.5 2.3 24.6 23.7
Zee Ent. Neutral 171 215 26 11.1 12.0 13.9 101.7 8.8 15.5 14.2 12.3 1.5 1.4 11.0 11.7
Aggregate -18.6 20.7 39.1 17.5 12.6 2.2 2.0 12.3 15.6
Metals
Hindalco Buy 438 520 19 24.6 44.9 50.0 40.7 82.6 11.3 9.8 8.8 1.9 1.6 21.0 19.5
Hind. Zinc Neutral 319 300 -6 18.9 23.6 25.6 17.3 25.1 8.1 13.5 12.5 4.0 3.8 30.2 31.0
JSPL Buy 372 495 33 61.4 74.0 45.9 - 20.4 -37.9 5.0 8.1 1.0 0.9 21.2 11.2
JSW Steel Buy 677 840 24 32.8 93.8 87.0 262.5 186.2 -7.2 7.2 7.8 2.5 2.0 39.9 28.2
Nalco Buy 85 107 26 5.4 9.4 11.1 629.4 74.4 17.7 9.0 7.7 1.4 1.2 15.6 16.9
NMDC Buy 152 220 45 22.5 38.2 28.5 47.0 69.8 -25.4 4.0 5.3 1.3 1.2 35.0 23.3
SAIL Buy 118 175 48 13.1 37.0 24.9 - 183 -32.6 3.2 4.7 0.9 0.8 30.0 17.2
Tata Steel Neutral 1384 1565 13 69.0 329.2 190.3 661.9 377 -42.2 4.2 7.3 1.6 1.4 46.5 20.8
Vedanta Neutral 293 300 3 25.9 42.9 36.5 195.3 66 -14.8 6.8 8.0 1.6 1.5 24.6 19.6
Aggregate 175.0 128.5 -21.7 6.0 7.7 1.6 1.4 27.3 18.8
Oil & Gas
Aegis Logistics Neutral 270 365 35 6.7 10.1 13.3 124.3 51.1 31.3 26.7 20.3 4.1 3.6 16.4 19.0
BPCL Buy 471 615 31 63.2 32.4 40.5 165.6 -48.7 24.9 14.5 11.6 2.1 1.9 13.6 17.1
Castrol India Buy 134 170 27 5.9 7.6 8.2 -29.6 28.4 8.7 17.7 16.3 8.5 7.7 50.3 49.5
GAIL Buy 143 200 39 10.9 16.8 16.3 -34.0 54.8 -2.8 8.5 8.8 1.2 1.1 15.5 13.8
Gujarat Gas Buy 711 860 21 18.5 21.7 29.0 6.9 17.3 33.4 32.7 24.5 8.4 6.4 29.0 29.7
Gujarat St. Pet. Buy 347 500 44 16.4 18.3 20.1 -16.5 11.2 10.0 19.0 17.3 2.3 2.1 12.9 12.6
HPCL Neutral 256 295 15 70.0 37.3 43.3 192.8 -46.6 15.9 6.9 5.9 1.0 0.9 14.5 15.7
IOC Buy 106 157 48 23.7 17.3 17.0 130.8 -27.1 -1.5 6.1 6.2 0.8 0.8 13.7 12.6
IGL Neutral 525 510 -3 14.4 17.3 18.2 -11.5 20.1 5.3 30.4 28.9 5.5 4.8 19.2 17.8
Mahanagar Gas Buy 1132 1315 16 62.7 86.6 80.0 -21.9 38.1 -7.6 13.1 14.1 3.0 2.6 24.5 19.8
MRPL Sell 42 42 -1 -1.4 0.8 7.5 -91.2 LP 904.2 56.4 5.6 1.0 0.9 1.7 16.2
Oil India Buy 176 200 13 19.4 25.4 26.8 -15.2 31.3 5.2 6.9 6.6 0.7 0.7 10.6 10.5
ONGC Buy 116 150 29 16.1 23.2 25.6 23.8 44.1 10.0 5.0 4.6 0.6 0.6 12.9 13.0
PLNG Buy 227 310 36 19.7 20.1 23.3 6.5 2.0 16.4 11.3 9.7 2.7 2.4 24.6 25.8
Reliance Ind. Buy 2227 2485 12 67.7 88.7 113.7 1.1 30.9 28.2 25.1 19.6 1.9 1.8 7.9 9.3
Aggregate 34.2 8.0 17.8 15.3 13.0 1.5 1.4 10.1 10.9
Retail
Avenue
Neutral 3830 3220 -16 17.0 22.8 38.7 -15.5 34.6 69.3 167.7 99.0 17.5 14.8 11.4 16.8
Supermarts
Aditya Birla
Buy 202 270 33 -7.1 -3.0 0.0 3,769.5 Loss LP NM - 9.1 9.1 -13.1 0.0
Fashion
Burger King Buy 171 210 23 -4.3 -1.9 0.1 66.9 Loss LP NM 1,144.9 10.9 10.8 -11.9 0.9
Jubilant Food. Buy 3812 3630 -5 17.5 34.3 50.5 -22.5 96.4 47.2 111.1 75.5 31.5 24.8 28.3 32.9
Shoppers Stop Neutral 244 245 0 -32.0 -15.0 1.1 117.4 Loss LP NM 217.1 -381.4 503.9 -218.7 -
Titan Company Buy 1823 2065 13 11.0 17.8 29.9 -35.4 61.4 68.0 102.4 60.9 19.5 17.3 20.0 30.1
Trent Neutral 948 850 -10 -5.1 1.8 9.5 -270.1 LP 419.6 516.1 99.3 13.3 11.6 2.8 13.3
V-Mart Retail Buy 3536 3920 11 -3.4 1.2 43.0 -112.6 LP 3,620.6 3,060.4 82.3 7.7 7.1 0.3 9.0
Westlife Develop Neutral 535 540 1 -6.7 -3.6 3.7 - Loss LP NM 143.0 19.6 17.2 -12.5 12.8
Aggregate -69.5 218.6 111.9 178.3 84.1 17.5 15.2 9.8 18.1
Technology
Cyient Buy 946 1090 15 33.8 45.0 54.4 0.1 33.2 20.9 21.0 17.4 3.5 3.2 16.8 19.4
HCL Tech. Buy 1163 1180 1 43.8 49.3 58.9 7.5 12.5 19.6 23.6 19.7 4.8 4.5 21.1 23.6
Infosys Buy 1708 1770 4 45.6 52.6 65.6 17.1 15.5 24.7 32.5 26.0 10.4 9.9 30.6 39.0
L & T Infotech Neutral 5238 4280 -18 107.0 121.1 147.8 23.6 13.2 22.0 43.2 35.4 10.7 9.0 26.8 27.7
L&T Technology Buy 3976 3380 -15 62.8 87.3 109.1 -19.0 38.9 25.0 45.5 36.4 10.3 8.7 24.4 26.0
Mindtree Neutral 3643 2620 -28 67.4 83.6 100.8 75.7 24.1 20.6 43.6 36.1 11.8 10.0 29.3 30.0
Mphasis Buy 2896 2770 -4 64.2 77.7 99.0 1.7 21.0 27.3 37.3 29.3 7.6 6.9 21.6 25.1
Coforge Neutral 5074 4760 -6 78.8 116.9 153.6 4.4 48.3 31.4 43.4 33.0 10.4 8.5 26.2 28.4
Persistent Sys Neutral 3251 3130 -4 59.0 84.0 104.2 32.4 42.4 24.0 38.7 31.2 7.7 6.5 21.3 22.6

30 August 2021 19
 Click excel icon
for detailed
valuation guide
Valuation snapshot

CMP TP % Upside EPS (INR) EPS Gr. YoY (%) P/E (x) P/B (x) ROE (%)
Company Reco (INR) (INR) Downside FY21 FY22E FY23E FY21 FY22E FY23E FY22E FY23E FY22E FY23E FY22E FY23E
TCS Neutral 3720 3400 -9 86.7 107.2 125.7 0.6 23.6 17.3 34.7 29.6 15.1 14.2 44.6 49.4
Tech Mah Neutral 1447 1220 -16 51.7 61.0 71.7 6.9 18.0 17.5 23.7 20.2 4.6 4.1 20.5 21.7
Wipro Neutral 635 580 -9 18.8 20.8 25.2 14.3 11.1 20.8 30.5 25.2 6.3 6.3 21.0 25.0
Zensar Tech Buy 457 470 3 15.3 17.5 22.6 31.0 14.3 29.3 26.1 20.2 3.9 3.5 15.8 18.3
Aggregate 7.5 17.4 20.0 32.7 27.3 9.5 8.9 29.1 32.7
Telecom
Bharti Airtel Buy 594 720 21 -1.3 5.1 9.7 -82.5 LP 90.7 116.5 61.1 5.3 4.9 4.6 8.3
Indus Towers Neutral 216 250 16 18.5 21.7 21.9 -1.0 17.7 1.0 10.0 9.9 3.3 3.1 35.2 32.5
Vodafone Idea Neutral 6 -8.4 -10.1 -11.0 11.7 Loss Loss NM NM -0.3 -0.2 55.1 38.0
Tata Comm Neutral 1388 1380 -1 46.5 48.6 61.2 340.2 4.5 25.9 28.5 22.7 26.3 12.2 171 73.4
Aggregate Loss Loss Loss -22 -22.6 30.6 -45.5 -138.8 201.5
Utiltites
Coal India Buy 139 185 33 20.6 25.7 28.8 -23.9 24.5 12.1 5.4 4.8 2.0 1.7 37.6 36.1
CESC Buy 758 890 17 100.1 104.1 111.1 2.4 4.1 6.7 7.3 6.8 0.9 0.9 13.5 13.5
Indian Energy
Neutral 434 410 -6 7.2 9.2 10.6 19.9 28.2 15.6 47.3 41.0 21.1 18.3 47.8 47.9
Exchange
JSW Energy Sell 248 180 -27 4.9 5.7 6.8 -4.7 16.9 20.8 43.8 36.2 2.7 2.6 6.3 7.2
NHPC Neutral 27 28 6 3.0 3.1 3.6 4.5 2.7 16.0 8.6 7.4 0.8 0.7 9.1 10.0
NTPC Buy 113 140 24 15.7 16.0 17.6 13.6 1.9 10.0 7.1 6.4 0.8 0.8 12.0 12.4
Power Grid Buy 174 205 18 17.9 18.9 19.8 16.0 5.6 5.0 9.2 8.8 1.6 1.5 18.0 17.5
Torrent Power Neutral 488 485 -1 22.9 29.2 33.8 -18.2 27.4 15.8 16.7 14.5 2.1 1.9 13.2 13.8
Tata Power Buy 127 156 23 3.9 5.5 6.4 4.3 40.2 16.8 23.1 19.8 1.9 1.7 8.2 9.1
Aggregate -1.3 9.7 9.9 8.1 7.4 1.3 1.2 16.0 16.4
Others
BSE Buy 1099 1430 30 30.9 46.9 71.0 24.1 51.8 51.2 23.4 15.5 2.1 2.0 8.8 12.9
Concor Buy 653 780 19 9.6 17.2 22.4 -42.0 78.7 30.1 38.0 29.2 3.7 3.6 10.1 12.5
Coromandel Intl Buy 768 1050 37 45.3 52.7 57.8 24.6 16.3 9.7 14.6 13.3 3.6 3.0 27.0 24.6
EPL Buy 230 320 39 8.0 10.0 12.4 17.8 24.4 24.5 23.0 18.5 3.8 3.4 17.5 19.3
Indiamart Inter. Buy 7145 8610 21 96.6 119.5 129.9 86.5 23.7 8.7 59.8 55.0 11.2 9.5 20.5 18.7
Indian Hotels Buy 140 183 31 -7.1 -3.4 2.0 -359.5 Loss LP NM 70.2 5.2 5.0 -12.0 7.2
Interglobe Neutral 1776 1600 -10 -151.7 -181.8 51.2 2,249.3 Loss LP NM 34.7 -9.9 -13.8 204.1 -33.2
Info Edge Neutral 5896 5230 -11 21.3 32.0 42.3 27.5 49.9 32.4 184.4 139.2 15.8 14.7 8.8 10.4
Godrej Agrovet Buy 622 760 22 16.3 21.3 24.8 25.0 30.2 16.5 29.2 25.1 5.2 4.6 18.8 19.4
Kaveri Seed Buy 581 710 22 51.6 37.0 54.7 19.7 -28.3 47.9 15.7 10.6 2.5 2.1 16.7 21.1
Lemon Tree HotelBuy 38 57 49 -1.6 -1.1 1.2 1,232.4 Loss LP NM 32.8 3.6 3.2 -9.7 10.4
MCX Buy 1491 1940 30 44.2 39.3 55.6 -4.8 -11.1 41.6 38.0 26.8 5.0 4.6 13.6 17.8
Quess Corp Buy 837 1000 19 14.9 28.7 47.9 -18.6 92.9 67.2 29.2 17.5 3.4 2.8 16.1 22.2
PI Inds. Buy 3191 3720 17 48.6 63.2 86.0 61.7 30.2 36.1 50.5 37.1 7.8 6.5 16.6 19.2
SIS Buy 469 600 28 23.7 20.8 28.8 -1.7 -12.4 38.5 22.6 16.3 1.5 1.2 15.7 18.2
SRF Neutral 9426 8075 -14 196.9 270.0 312.5 29.0 37.2 15.7 34.9 30.2 6.8 5.6 21.4 20.4
Tata Chemicals Neutral 829 810 -2 10.1 36.7 45.6 -68.2 264.9 24.2 22.6 18.2 1.4 1.3 6.4 7.6
Team Lease Serv. Buy 3935 4200 7 51.9 74.9 104.9 6.1 44.4 40.1 52.6 37.5 8.6 7.0 17.8 20.5
Trident Buy 20 25 24 0.7 1.5 1.7 3.2 121.3 13.5 13.7 12.1 2.5 2.1 20.0 19.0
UPL Neutral 730 760 4 45.4 59.4 68.7 29.9 30.9 15.7 12.3 10.6 1.7 1.4 23.2 22.5

30 August 2021 20
 Index and MOFSL Universe stock performance

Index 1 Day (%) 1M (%) 12M (%) Index 1 Day (%) 1M (%) 12M (%)
Sensex 0.3 6.7 43.5 Nifty 500 0.6 4.3 48.1
Nifty-50 0.4 6.1 44.5 Nifty Midcap 100 1.1 0.9 60.4
Nifty Next 50 1.3 3.3 44.6 Nifty Smallcap 100 0.8 -3.8 70.8
Nifty 100 0.5 5.7 44.6 Nifty Midcap 150 0.9 0.8 59.3
Nifty 200 0.6 5.1 46.4 Nifty Smallcap 250 0.8 -4.2 71.0
Company 1 Day (%) 1M (%) 12M (%) Muthoot Fin 0.5 -4.5 24.8
Automobiles 0.3 -3.0 19.7 Manappuram Fin. -0.7 -23.5 3.2
Amara Raja Batt. 2.4 -5.0 -7.9 MAS Financial Serv. 2.3 -3.8 -5.3
Apollo Tyres 0.0 -5.9 54.4 Max Financial -0.4 -9.1 69.2
Ashok Leyland 2.3 -1.8 65.9 ICICI Pru Life 0.6 0.5 46.1
Bajaj Auto 0.2 -3.2 21.6 ICICI Sec 0.8 -3.7 43.6
Balkrishna Inds 0.6 -1.2 66.0 Company 1 Day (%) 1M (%) 12M (%)
Bharat Forge 0.3 -6.5 42.8 IIFL Wealth Mgt 0.5 15.4 40.4
Bosch -0.1 -9.2 -3.5 PNB Housing -0.2 -4.1 118.2
CEAT 0.6 -3.8 37.4 Repco Home -0.4 -18.0 63.9
Eicher Motors -0.2 0.1 15.1 SBI Life Insuran 2.7 7.0 40.6
Endurance Tech. 0.3 3.3 55.2 Shriram City Union 0.2 17.7 117.5
Escorts 0.3 17.9 16.5 Shriram Trans. 1.2 -6.2 77.9
Exide Inds. 0.2 -11.1 -9.4 Capital Goods 2.1 3.3 72.4
Hero Motocorp 1.0 -4.3 -14.9 ABB 6.7 10.6 90.3
M&M -0.8 4.0 21.8 Bharat Elec. 2.2 1.0 68.0
Mahindra CIE -1.5 -15.8 52.6 BHEL 4.1 -12.0 38.0
Maruti Suzuki 0.0 -8.8 -7.0 Cummins -0.1 15.9 108.5
MRF 0.5 -4.0 29.7 Engineers India 1.6 -6.1 0.2
Motherson Sumi 0.7 -6.8 83.9 K E C Intl 2.5 -4.2 20.4
Tata Motors 0.5 -1.9 98.0 L&T 2.7 1.8 67.9
TVS Motor Co. 0.3 -12.1 11.3 Siemens 0.4 14.3 82.7
Banks-Private 0.2 1.6 42.3 Thermax 0.1 -2.5 76.3
AU Small Fin. Bank -4.4 8.2 76.9 Consumer Durables 0.6 -0.6 53.7
Axis Bank 0.9 2.8 59.1 Blue Star -0.9 -8.5 12.6
Bandhan Bank 4.2 -6.6 -11.1 CG Cons. Elec. -0.2 -2.5 72.9
DCB Bank 4.7 -14.8 -3.1 Havells 1.6 6.6 89.3
Equitas Holdings -0.4 -12.7 106.5 Voltas 2.8 -3.5 48.5
Federal Bank -0.3 -9.7 39.0 Whirlpool India -0.8 -8.7 -8.9
HDFC Bank -0.4 7.6 39.3 Orient Electric 0.5 -10.7 59.3
ICICI Bank 0.2 3.2 78.3 Chemicals
IndusInd Bank -1.0 1.6 63.6 Alkyl Amines 7.1 -8.6 208.5
Kotak Mah. Bank 1.1 1.1 20.8 Atul 1.1 -0.8 43.3
RBL Bank 0.0 -17.1 -19.6 Deepak Nitrite 2.2 11.7 179.7
SBI Cards 0.2 7.4 33.2 Fine Organic -0.3 -3.6 2.9
Banks-PSU 0.6 -6.0 48.8 Galaxy Surfact. 0.6 0.6 67.1
BOB 0.6 -6.8 53.1 Navin Fluo.Intl. 6.9 4.7 83.5
Indian Bk 0.4 -10.2 87.5 NOCIL 6.8 2.7 110.0
PNB 0.8 -7.7 2.4 Vinati Organics 0.5 -7.0 65.0
SBI 0.4 -4.0 91.1 Cement 1.7 -1.4 93.2
Union Bk 1.6 -5.1 11.6 Ambuja Cem. 3.0 0.2 84.8
Company 1 Day (%) 1M (%) 12M (%) ACC 3.3 -0.9 67.9
NBFCs 0.5 6.0 52.6 Birla Corp. 2.5 -11.7 104.0
Aditya Birla Cap 1.5 -8.2 67.5 Dalmia Bhar. -0.5 -9.5 174.2
Bajaj Fin. 0.4 11.7 91.7 Grasim Inds. 1.4 -4.1 113.1
Cholaman.Inv.&Fn -1.2 8.3 117.7 India Cem 2.5 -15.7 33.7
Can Fin Homes 1.8 -4.6 37.9 J K Cements -1.0 3.1 106.0
HDFC 0.7 11.6 45.9 JK Lakshmi Ce 1.5 -2.1 155.1
HDFC Life Insur. 0.7 5.2 18.0 Ramco Cem 1.8 -7.0 37.9
Indostar Capital 0.1 -15.6 -5.9 Shree Cem 1.2 -3.6 24.9
L&T Fin.Holdings 0.3 -7.5 23.3 Ultratech 3.6 -0.3 86.9
LIC Hsg Fin 0.4 -12.6 27.6 Consumer 0.4 6.8 24.0
M&M Fin. 0.3 5.0 10.4 Asian Paints -0.1 0.3 53.2
Note: Sectoral performance are of NSE/BSE Indices

30 August 2021 21
 Index and MOFSL Universe stock performance

Company 1 Day (%) 1M (%) 12M (%) Company 1 Day (%) 1M (%) 12M (%)
Britannia 0.3 14.2 3.3 Oil & Gas 0.5 6.7 24.6
Colgate 0.2 -7.8 17.9 Aegis Logistics 0.1 -13.2 24.8
Dabur 0.5 3.4 23.5 BPCL 1.0 4.0 14.2
Emami 0.8 7.4 66.4 Castrol India -0.9 -5.4 9.2
Godrej Cons. 1.4 5.6 55.3 GAIL 0.5 3.1 44.6
HUL 0.4 14.3 23.2 Gujarat Gas 0.5 2.4 117.7
ITC 0.6 -1.3 6.0 Gujarat St. Pet. 0.2 2.0 59.1
Jyothy Lab -0.1 -9.3 7.6 HPCL 0.3 -4.7 23.0
Marico 0.6 -1.9 40.1 IOC 0.4 2.0 21.4
Nestle -0.5 9.4 23.9 IGL 0.1 -4.0 29.0
Page Inds 1.4 -5.1 53.7 Mahanagar Gas 1.3 -0.5 14.0
Pidilite Ind. -0.1 -3.3 51.3 MRPL 0.2 -8.6 25.1
P&G Hygiene 1.1 7.0 35.5 Oil India -1.9 9.3 80.2
Tata Consumer -0.6 10.1 55.5 ONGC 0.8 1.6 45.1
United Brew 1.1 1.9 38.5 PLNG 0.0 4.9 -6.7
United Spirits 2.3 8.7 22.9 Reliance Ind. -0.2 8.4 5.4
Varun Beverages 0.2 14.6 67.9 Retail
Healthcare 1.4 -0.5 20.4 Aditya Bir. Fas. 0.9 -9.4 38.2
Alembic Phar 1.4 -7.5 -25.2 Avenue Super. -0.4 9.5 60.8
Alkem Lab 0.7 14.9 35.3 Burger King 0.7 -1.9
Ajanta Pharma -0.6 -1.4 40.0 Jubilant Food -0.4 3.9 75.3
Aurobindo 1.7 -21.6 -19.0 Shoppers St. 0.0 -0.4 36.2
Biocon 1.7 -8.6 -11.3 Titan Co. 0.4 5.3 60.3
Cadila 1.7 -8.1 41.5 Trent 0.6 3.4 46.2
Cipla 1.3 1.1 22.1 V-Mart Retail 0.1 8.1 72.8
Divis Lab 1.2 2.3 50.0 Westlife Develop 1.6 -2.6 43.9
Dr Reddy’s 2.2 -5.0 3.7 Technology 0.8 14.8 89.5
Gland Pharma 1.2 1.7 Cyient 0.3 -3.6 139.1
Glenmark 0.8 -12.3 3.8 HCL Tech. -0.4 17.1 63.7
GSK Pharma 0.0 -9.4 -5.0 Infosys -1.1 6.6 80.5
Granules 1.4 -9.3 6.8 L&T Infotech 2.1 20.4 110.0
IPCA Labs -2.2 10.3 22.1 L&T Technology 3.1 13.8 158.6
Jubilant Pharmo 1.9 -7.1 -15.8 Mindtree 4.3 34.2 216.8
Laurus Labs -1.2 4.2 176.4 Mphasis 5.6 11.5 144.0
Lupin 0.3 -15.4 -4.4 Coforge 2.3 7.4 161.1
Solara Active 0.0 -5.4 70.4 Persistent Sys 1.1 2.8 209.9
Strides Pharma 3.7 -19.9 -6.2 TCS 1.3 16.9 65.5
Sun Pharma 1.5 12.2 44.8 Tech Mah -0.2 28.9 96.7
Torrent Pharma 0.0 1.6 11.0 Wipro 0.9 7.3 133.5
Infrastructure 1.2 3.3 40.9 Zensar Tech 2.3 13.8 157.7
Ashoka Buildcon 0.3 -2.8 31.0 Telecom 1.0 5.4 20.1
IRB Infra.Devl. 2.2 0.2 28.2 Bharti Airtel 1.2 9.9 16.2
KNR Construct. 4.0 16.8 135.7 Indus Towers 0.5 -3.0 8.2
Media 1.0 -9.0 -2.9 Idea Cellular 2.2 -28.3 -32.1
PVR 1.8 -2.6 -0.9 Tata Comm -0.3 3.2 57.1
Sun TV 1.4 -10.5 0.2 Utiltites 1.5 7.4 62.8
Zee Ent. 1.6 -14.9 -18.6 Coal India 0.9 -2.7 -1.4
Metals 1.6 0.5 117.0 CESC 0.0 -9.0 19.1
Hindalco 3.3 4.9 124.7 Indian Energy Ex -1.6 1.1 126.8
Hind. Zinc 1.2 -0.5 34.6 JSW Energy 4.2 -1.5 343.6
JSPL 0.1 -11.5 71.8 NHPC Ltd 0.4 2.3 18.0
JSW Steel 0.8 -4.7 134.1 NTPC 0.6 -4.5 10.5
Nalco 7.7 -2.4 129.1 Power Grid 0.7 0.2 25.5
NMDC 2.3 -12.8 58.5 Tata Power 1.2 5.0 106.5
SAIL 2.5 -8.9 190.4 Torrent Power 3.3 6.4 41.9
Tata Steel 0.7 4.0 224.3 Others
Vedanta 1.7 10.2 129.0 BSE -0.2 -11.6 113.5
Coromandel Intl -0.1 -13.4 -4.3

30 August 2021 22
 Index and MOFSL Universe stock performance

Company 1 Day (%) 1M (%) 12M (%)

Concor -0.1 2.1 65.3
EPL Ltd 0.4 -2.8 -21.8
Indiamart Inter. 0.9 -0.5 94.3
Godrej Agrovet -0.4 -5.7 27.0
Indian Hotels 1.7 -5.6 31.1
Interglobe 1.7 4.1 49.9
Info Edge 1.7 13.8 79.9
Kaveri Seed -2.0 -17.4 -6.5
Lemon Tree Hotel -1.0 -4.1 27.8
MCX -0.4 -11.0 -11.0
Piramal Enterp. 0.1 11.5 68.7
PI Inds. 1.6 6.4 60.2
Quess Corp 0.9 4.3 115.9
SIS 0.4 -8.8 17.6
SRF 4.0 23.0 122.4
Tata Chemicals 0.3 11.5 151.8
Team Lease Serv. 0.3 1.7 66.2
Trident -1.0 12.3 200.3
UPL 1.4 -10.2 47.0

30 August 2021 23
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and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website www.motilaloswal.com.
CIN No.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.

Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate
Agent: CA0579 ;PMS:INP000006712. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products
and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of
MOFSL. Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee of the returns. Investment in securities market is
subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: [email protected], Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law Tribunal, Mumbai Bench.

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