Diwali Top Picks 2022

DIWALI
TOP PICKS
2022
October 14, 2022

Diwali Top Picks 2022
SPLENDID SEVEN DIWALI BUYS
From households and businesses to governments and the central bank governors, the central challenge bothering one and
all across the globe is inflation. Essentially the supply disruption on account of Covid‐19, further accentuated by Russia’s
invasion of Ukraine. Now that all central bankers are raising rates in tandem, the prevalent fear is that the sheer pace and
quantum of monetary tightening will strangle the interconnected economy across the globe.
Yes, there is a tiny element of plausibility lurking in that fear, but our sense is that inflation will peak on account of 1. Some
Covid linked disrupted supply coming back onstream, 2. rate hikes done by central bankers, 3. China opening up its economy
again at some point, 4. Softening of global commodities and 5. Range bound movement in oil.
Fed and other central banks are intent on taming inflation, and hence they shall keep raising rates and test waters, which in
turn will trigger some volatility in the market. Having said that, we are confident that as soon as the Fed sees evidence of
inflation coming under control or even cooling off a bit, they will pause the rate hikes as also the policy tightening. Once they
are convinced about shifting the attention from inflation to economy once again, they shall start the regime of cutting interest
rates. Somewhere in 2023, we could see the rate cut cycle back in action again. The past is replete with instances when
central banks kept rates low to support growth and continued with their liberal monetary policies despite rising inflation.
There is ample reason to trust the Fed, as also other central banks, that come what may, they would certainly not push the
world economy into recession. Technically, two quarters of negative growth is classified as a recession, but beyond that, the
moment central bankers see evidence of inflation cooling down, they will press the pause button for sure. Already, there
have been several raised voices urging the central banks not to overdo the tightening, showing them the futility of sticking
to their guns and simply raising rates in succession. We expect these voices to positively influence the central bank decisions
going forward.
As mentioned earlier, when inflation was on the rise due to Covid and other issues, central bank maintained their status quo
of low rates. It was only when the Ukraine–Russia war pushed inflation numbers out of control, and when inflation threatened
to touch 9 ‐10 percent, that they intervened with their rate hike spree.
Meanwhile, US G‐Sec has also moved up in anticipation of a situational reversal. If it peaks at 4.25% and stabilizes at that
level, and if Indian G‐Sec also settles at ~8%, equities will witness an exciting phase for sure. As and when bond and currency
markets stabilize, we shall see equity markets following suit which is when the FII selling will peak out. Dollar index on the
currency side is close to its peak, and in terms of INR, inflation shall peak faster and drop faster, and would under more under
control compared to USD, as is evident from our real rates which are better than US rates. Our Current Account Deficit shall
obviously expand, but we feel that event is already priced in. We can expect Rupee to settle at 83‐84 vs the Dollar. Given all
these developments, FII selling will come to a halt, and we can expect FII inflows to resume with renewed vigour.
Amid the current chaos, we need to expect and accept volatility as an inevitable factor as any bad news in Europe or any
fresh escalation in the Russia‐Ukraine hostilities can throw all asset classes out of sync. Having said that, India remains
structurally positive even in this gloomy situation, and fast emerging as the fastest growing market in the world. It is pertinent
to note that other markets with similar profiles as India, like Indonesia and Philippines, are also witnessing downgrades.
All in all, once a margin of safety is in place, certain pockets of opportunities will emerge and loom large. With a firm focus
on these pockets of opportunities this year, we recommend our Splendid Seven Diwali Buys.
For important information about YES Securities (India) Ltd. and other disclosures, refer to the end of this material. 1

Company Name Sector CMP* (Rs) Target (Rs) Upside
Shree Cement Cement 21,189 25,450 20%
Greenply Industries Building Materials 177 220 24%
ICICI Prudential Life Insurance Insurance (Life) 513 650 26%
Prestige Estates Projects Ltd Real Estate 438 550 25%
V‐Guard Industries Ltd Consumer Durables 244 301 23%
SBI Banks 527 655 24%
HCL Technologies Information Technology 1003 1210 20%

* CMP as on 14th October, 2022


SHREE CEMENT Rating BUY

CMP : Rs 21,189
Target Price : Rs 25,450
 Industry scenario and road ahead: India’s cement sector
profitability may bottom out by Q2FY23 and may scale new highs Potential Return : 20%
by FY25 as the cost structure seems at its trough. Given likely
consolidation in the near future, industry should be able to pass Stock data (as on Oct 14, 2022)
on most cost escalations; therefore, we expect an increasing
Nifty 17,271
EBIDTA/T going forward. With declining fuel costs (down 30%
52 Week h/l (Rs) 29819 / 17865
from peak) and government thrust on low‐cost housing and infra,
Market cap (Rs/USD mn) 764497 / 9285
the outlook for urban real estate sector is improving, rural housing
Outstanding Shares (mn) 36
demand is expected to stabilize, and a revival in corporate capex
6m Avg t/o (Rs mn): 1,368
spends on industrial and commercial sectors seems imminent. As
Div yield (%): 0.2
most players have initiated cost saving measures, we can expect
pricing discipline going forward, and the entry of new players will Bloomberg code: SRCM IN
lead to industry consolidation. NSE code: SHREECEM

 Over the last decade, Shree Cement (SRCM) has grown its Stock performance
capacity more than 4x to 46+ mtpa in FY22 at an industry low SHREECEM Nifty
110
capex cost. Hence, SRCM has sustained its industry–leading
100
profitability despite lower realizations. It has established many
90
cost‐saving practices to become the industry’s lowest‐cost
80
cement producer.
70
 SRCM has re‐iterated its plans to reach 56 mtpa by FY25 and 80 60
mtpa by FY30 which provides strong volume growth visibility. As
50
part of its fast‐paced expansion strategy, SRCM intends to install Oct‐21 Feb‐22 Jun‐22 Oct‐22
smaller and identical sized kilns. These new capacities will be set 1M 3M 1Y
up in favorable markets and newer geographies through both Absolute
‐12.2% 8.3% ‐23.9%
return
organic and inorganic routes with no/low cannibalization with

existing plant. SRCM also plans to add 100 MW solar plants and Shareholding pattern (As of Jun’22 end)
add railway logistics at various locations in the medium term.
Promoter FII+DII Others
 Focus on ESG and cost improvement: The share of green power
was marginally up in FY22 at 48.2%. Renewable power generation 14.4%
capacity increased by 19 MW YoY to 263 MW, taking total power
capacity to 771MW in FY22. The share of blended cement in total 23.1%
cement production stood at ~75%, which helped reduce the 62.6%
clinker factor by 45bps to 63.25% in FY22. The consumption of
alternate fuels increased by 380bps to 9.8%. SRCM is focused on
building rail connectivity for some of its plants to enhance
material movement through railways and help contain Financial summary
transportation cost. (Rs mn) FY22 FY23E FY24E
Revenue 143,059 162,465 181,441
 Strong Balance sheet: SRCM has a very robust balance sheet
EBITDA 36,478 38,096 49,771
which gives it the headroom to grow its capacity aggressively.
SRCM’s net cash stood at ~INR 74 bn and given the cash flow Margin 25.5 23.4 27.4
generation in FY23‐25E, it would still maintain a very healthy Adj PAT 23,766 20,656 30,597
position even after incurring a capex of INR 70 bn. SRCM has EPS 659 573 848
indicated its keenness to acquire assets even at >USD 120/ton. ROE 13.8 10.9 14.1
EV/EBITDA 24.7 17.4 13.1


GREENPLY INDUSTRIES LTD. Rating BUY

CMP : Rs 177
Target Price : Rs 220
 Greenply Industries Limited (GIL) achieved a credible
performance in a challenging environment, which came on the Potential Return : 24%
back of renewed demand in both residential and office segments,
which is expected to continue for the next 2‐3 years. Government Stock data (as on Oct 14, 2022)
policies and initiatives like the promotion of furniture clusters are
Nifty 17,271
also aiding growth and would boost industry expansion going
52 Week h/l (Rs) 255 / 161
forward. The consumer shift towards branded products and
growing preference for readymade furniture, backed by a
buoyant real estate sector, will continue to drive industry growth.
6m Avg t/o (Rs mn): 37
GIL’s strong brand position of ecofriendly and durable products
Div yield (%): 0.3
designed to cater to both premium and value segments seems
well poised to leverage the growth opportunity. Bloomberg code: MTLM IN
NSE code: GREENPLY
 Core remains strong: Demand for plywood is decent and
witnessing a m/m improvement. Moreover, management has Stock performance
reiterated their FY23 guidance of 15% revenue growth wherein GREENPLY Nifty
150
volumes should grow by 10‐12% YoY owing to strong demand
form tier‐II & III cities. With GIL’s Sandila plant commencing 130
commercial production, management is confident of achieving
110
their guidance. Also, the Sandila plant is strategically located
giving GIL a clear advantage in terms of raw material availability 90
and penetration into northern markets. GIL is focused on asset‐
light growth model to serve the growing plywood demand in the 70
Oct‐21 Feb‐22 Jun‐22 Oct‐22
value segment market.
1M 3M 1Y
 Scaling to be Next‐Ready: In FY22, GIL has strategically moved Absolute
return ‐8.4% 0.2% ‐9.1%
into new business segments, product lines, and geographies to

strengthen its foundation and build a future ready organization. Shareholding pattern (As of Jun’22 end)
GIL has forayed into the high‐potential MDF Boards business
under a Wholly Owned Subsidiary, with the capacity of 800 CBM Promoter FII+DII Others
per day of greenfield facility in Vadodara. MDF is a futuristic
10.9%
wood panel product with a wide range of end‐use applications.
This facility is expected to become operational by the end of
FY23. GIL aims to utilize the plant in 3 years; in year 1, 52.3%
management believes the plant should reach a utilization of 40‐ 36.8%
50%. Given that this is the only MDF plant in the west, GIL will
sell ~50‐60% of production in the western region. Management
expects the MDF industry to grow by 20% and margins to remain
above 25% in near‐term. Financial summary
(Rs mn) FY22 FY23E FY24E
 Costs have bottomed out: Chemical and Timber costs were Net
15,628 18,370 22,837
Revenue
higher in Q1FY23 and gradually softened in Q2FY23, but they are
YoY
yet at elevated levels. Overall, management expects RM prices to 34.1 17.5 24.3
Growth
cool‐off from Q3FY23 to help boost margins. EBIDTA 1,503 1,837 2,539
EBIDTA(%) 9.6 10 11.1
 We strongly believe GIL has the capability to make the most of
PAT 948 940 1,523
the opportunities and carve a niche as a value‐added industry
YoY
player. With a healthy balance sheet and asset‐light approach to 55.4 ‐0.7 61.9
Growth
growth in certain product segments, we can expect GIL to deliver ROE 17.4 14.8 19.4
measurable value to all its stakeholders. EPS 7.7 7.7 12.4
P/E 23.3 23.5 14.5
BV/Share 43.9 51.2 63.2
P/BV 4.1 3.5 2.8


ICICI PRUDENTIAL LIFE Rating BUY
INSURANCE CMP : Rs 513
 Life insurance sector has a long runway for multi‐year growth led Potential Return : 26%
by under penetration/density of life insurance in India with a large
protection gap. Life Insurance penetration in India has improved
to 3.2% in FY21 vs 2.8% FY20, and we expect it to move to 3.4% Stock data (as on Oct 14, 2022)
going forward, aided by growing awareness, accelerated internet Nifty 17,271
& mobile phone penetration, and shift of household savings into 52 Week h/l (Rs) 682 / 430
financial savings. Market cap (Rs/USD mn) 738478 / 8969
Outstanding Shares (mn) 1,439
 The pandemic was a blessing in disguise for the insurance sector
leading to greater awareness and accelerated digital adoption.
Div yield (%): 0.1
Given increasing awareness about life protection, private players
Bloomberg code: IPRU IN
are now eyeing this segment and improving its share in their
NSE code: ICICIPRULI
overall product mix.

 ICICI Prudential Life Insurance (IPRU) is the third‐largest private Stock performance
life insurer in India for new business premiums. Historically, ULIP ICICIPRULI Nifty
110
was the largest part of IPRU’s product mix. As of FY17, share of
100
ULIP in total APE stood at 84%, consciously brought down to 48%
in FY21 to diversify into other higher margin avenues. IPRU is 90
steadily moving towards a balanced business profile through 80

product diversification: reducing share of low margin ULIP and
70
increasing focus on high margin products like protection and
NPAR. Management intends to make protection its key focus 60
area.
1M 3M 1Y
 IPRU is partnering with non‐traditional digital distributors, e‐ Absolute
return ‐11.3% 0.0% ‐21.2%
commerce platforms, payment providers and fintech companies
to widen distribution channels and reach. Coupled with Shareholding pattern (As of Jun’22 end)
deepening of existing banca channel and tie‐up with new banks
augurs well for business growth. Like some of its large peers, IPRU Promoter FII+DII Others
enjoys access to a captive bancassurance channel (ICICI Bank).

The tie‐up with India’s second largest private sector bank has
5.4%
helped it continuously expand its distribution network besides
increasing brand recall. 73.4%
 Within private insurers, the industry is getting more polarized in 21.2%
favor of large players backed by India’s largest private banks and
financial institutions. They are better placed to make the most of
the burgeoning sector opportunities, and we strongly believe Financial summary
IPRU enjoys a large runway for growth with all its levers in place. Rs mn FY23E FY24E FY25E
APE 92,944 110,399 130,007
% yoy 20.20% 18.80% 17.80%
VNB 28,498 34,704 41,398
VNB Margin 30.70% 31.40% 31.80%
Reported
3,636 2,051 217
PAT
‐
% yoy ‐43.60% ‐89.40%
51.80%
EPS (Rs) 2.5 1.4 0.2
EV/Share
253.9 294.7 343.2
(Rs)
RoEV 17.30% 17.70% 17.90%
P/EV (x) 2 1.8 1.5

P/VNB (x) 26.1 21.4 18


PRESTIGE ESTATES PROJECTS Rating BUY
LTD. CMP : Rs 438
 Post‐pandemic, the real estate sector has gone through an Potential Return : 25%
immense overhaul with changing consumer preferences
reshaping the industry through a host of megatrends: increasing
population, growing urbanization, increased concern for Stock data (as on Oct 14, 2022)
wellbeing, and rapid climate change. Nifty 17,271
52 Week h/l (Rs) 555 / 379
 Broadening presence: From being a predominant South India
player for decades, Prestige Estates is now expanding its wings to
cover real estate growth markets across Northern and Western
India. They have launched a multitude of projects in Mumbai and
Div yield (%): 0.3
Delhi‐NCR. With projects spanning 34.39 million sq. ft. they are
Bloomberg code: PEPL IN
prepared to drive growth in these new geographies while
NSE code: PRESTIGE
maintaining their winning position in existing core markets.

 Firmly focused on growth: PEPL continues to focus on new Stock performance
launches and land bank augmentation, constant expansion of PRESTIGE Nifty
120
geographic footprint, strict adherence to delivery schedules,
110
customer‐centric approach, prudent capital management and
significant value unlocking. 100
90
 PEPL is currently evaluating projects/land parcels in NCR and
Pune. Its annuity is expected to rise with the commissioning of 80
5msf office assets over FY23‐24 along with two retail malls in 70
Bangalore and Kochi with TDA of 2.33msf. PEPL aspires to clock Oct‐21 Feb‐22 Jun‐22 Oct‐22
pre‐sales ~INR 120 bn for FY23. Mumbai’s commercial portfolio, 1M 3M 1Y

with all approvals in place, has commenced construction and Absolute
return ‐9.1% 0.7% ‐3.1%
expected to see fruition in the next 4 years.
Shareholding pattern (As of Jun’22 end)
 Liquidity and Balance Sheet Position: PEPL has substantially
improved its liquidity position on the books by concluding the Promoter FII+DII Others
Blackstone deal during the year, as also the stake sale of one of
their office blocks to CPPIB, thereby setting the stage for next
round of growth. Net D/E is expected to stay below 0.5x in the
65.5%
long run, although most of the capex is yet to be spent; a credible 3.2%
feat that reaffirms our confidence in PEPL. We are upbeat about
PEPL’s continued high performance given the sustained pent‐up
31.3%
demand in the residential space, increased traction in leasing, and
recovery in retail & hospitality.
Financial summary

Revenues 63,895 61,443 62,807

Yoy growth
(%)
‐11.8 ‐3.8 2.2
EBITDA 15,335 17,512 19,501
OPM (%) 24 29 31
EPS (Rs) 28.7 10.8 15.8
EPS growth ‐58.7 ‐62.3 46.3
P/E (x) 15.2 40.3 27.6
EV/EBITDA
14.1 12.3 10.4
(x)
Debt/Equity
0.5 0.4 0.3
(x)
RoE (%) 12.6 4.6 6.4
RoCE (%) 7 7.5 7.8


V‐GUARD INDUSTRIES LTD. Rating BUY

CMP : Rs 244
 About the Company: V‐Guard Industries Ltd (VGRD), established
in 1977, a Kochi based company, manufactures and markets Potential Return : 23%
Voltage stabilizers. The company has since then established a
strong brand name and aggressively diversified to become a multi‐ Stock data (as on Oct 14, 2022)
product company catering to the light electrical, electronics, and Nifty 17,271
consumer durable segment. Operating for over four decades, the 52 Week h/l (Rs) 267 / 181
company has established a superior brand positioning in a fast‐
evolving and competitive marketplace.
 The company has a substantial marketing and distribution 6m Avg t/o (Rs mn): 87
network and caters to a wide range of customers. With a staff of Div yield (%): 0.5
over 2300, its clientele varies by product and include direct Bloomberg code: VGRD IN
marketing agents, distributors, and retailers. Over 50,000 stores NSE code: VGUARD
are served by the company’s extensive network of 31 branches
across the nation. VGRD is looking to add 3,000‐5,000 retailers Stock performance
across the country every year in the medium term with more 110
VGUARD Nifty
additions in the non‐south region.
100
 Diversified Product Profile: The company has diversified product
portfolio across three segments: Electronics – stabilizers, digital 90
UPS & batteries, Electrical – wiring cables, switchgears &
80
Consumer durables – kitchen appliances, fans, solar & electric
water heaters. 70
 Product Leadership, Expansion and Premiumization of Portfolio:
1M 3M 1Y
The company is a market leader in Voltage stabilizers category. Absolute
1.1% 9.2% ‐6.5%
Competitors are largely regional players with limited presence. It return
is expected that this product category will continue to grow over
the next few years as white goods are still under‐penetrated. The
company has a pipeline of new and innovative products to keep Promoter FII+DII Others
pace with the technology evolution in white‐goods category. In
the Consumer Durable segment, the company has expanded its 13.6%
manufacturing facility at Sikkim and eliminated its dependency on
imports of electric water heater by moving the entire
55.9%
manufacturing in‐house. The company has also received great 30.5%
response for the new premium launches of fans manufactured at
its Uttarakhand facility. VGRD has expanded its kitchen
appliances range with the launch of new products such as water
purifiers, breakfast appliances, kitchen hoods, and chimneys. Financial summary
 Receding Cost Challenges: FY22 brought about challenges in
Revenue 34,982 40,914 45,632
terms of raw material prices surging which led to a contraction in
YoY Growth 28.60% 17.00% 11.50%
its margins. However, the raw material price inflation appears to
EBIDTA 3,382 4,132 4,791
have cooled off from the peak and is likely to aid in gross margin
YoY Growth 8.4 22.2 15.9
improvement in FY23 and beyond.
PAT 2,188 2,644 3,113
 We have a positive stance on the stock as it has been able to YoY Growth 9.00% 20.80% 17.80%
deliver on revenue growth, focused on increasing proportion of ROE 16.7 17.6 18.1
in‐house manufacturing and premiumization in its growing EPS 5.1 6.1 7.2
product portfolio. P/E 44.4 36.7 31.2
BV 32.7 37.3 42.6
EV/EBITDA 28.6 23 19.6


SBI Rating BUY

CMP : Rs 527
 SBI is a key beneficiary of the systemic uptick in credit demand,
Potential Return : 24%
especially led by credit growth witnessed in YTDCY22. With
increasing signs of momentum continuing in corporate demand
and a potential capex upturn in FY24, we believe SBI is one of the Stock data (as on Oct 14, 2022)
best‐placed participants in the sector. Another lever to credit Nifty 17,271
growth sustaining is tightened liquidity which would urge 52 Week h/l (Rs) 579 / 425
corporates to turn towards banks for meeting their credit Market cap (Rs/USD mn) 4705055 / 57144
requirements. SBI is keen to participate in this opportunity, as Outstanding Shares (mn) 8,925
underwriting and monitoring processes have been strengthened 6m Avg t/o (Rs mn): 6,680
to make balance sheet more resilient. Div yield (%): 1.3
Bloomberg code: SBIN IN
 SBI has navigated through Covid exceptionally well,
NSE code: SBIN
GNPA/NNPA/restructuring have improved to 3.9%/1.0%/1.0%.

We do not foresee any material asset quality risk and expect NPA
Stock performance
ratios to improve further and expect credit costs to be limited.
SBIN Nifty
130
 NIMs declined in Q1FY23, however we expect margins to
120
improve on account of re‐pricing of loans and deployment of
110
excess liquidity. The bank also plans to restrict the share of its
100
international loan book (a lower NIM business) to <15% which
90
should ideally ease pressure on NIMs.
80
 Risk on SME portfolio is gradually abating given better 70
performance evident from improved cash flows which is partly the Oct‐21 Feb‐22 Jun‐22 Oct‐22
reason that ECLGS and OTR portfolio has reduced in the span 1M 3M 1Y
Mar’22 to Jun’22. To protect the asset quality in SMEs, SBI is Absolute
return ‐7.8% 10.0% 9.1%
focused on tapping the value chain and products like vendor and
dealer financing. Shareholding pattern (As of Jun’22 end)
 Xpress credit continues to gain good traction with improved TAT Promoter FII+DII Others

of 2hrs through YONO and 1‐day through branches. Here, the
lending is majorly to corporate salaried customers, of which 83% 7.6%
are government employees thereby minimizing risk of default.
57.6%
 SBI has protected its asset/liability market share in the past 5
years and with increasing signs of stronger corporate credit 34.7%
demand emerging, we see SBI as one of the best placed banks to
ride the upturn.

Financial summary
(Rs mn) FY23E FY24E FY25E
NII 1,329,157 1,450,083 1,644,493
PPOP 768,378 965,425 1,173,535
Net Profit 376,743 526,870 661,582
Growth
18.9 39.8 25.6
(%)
EPS (Rs) 42.2 56.2 70.6
BVPS (Rs) 349 415 479
P/E (x) 7.5 5.6 4.5
P/BV (x) 0.9 0.8 0.7
ROE (%) 12.7 15 15.8
ROA (%) 0.8 1 1.1
Tier‐1 (%) 10.4 10.3 9.2


HCL TECHNOLOGIES LTD. Rating BUY

CMP : Rs 1003
 Noida‐based HCL Technologies Ltd. (HCL) is India’s third‐largest
IT services exporter with strong global presence. It provides Potential Return : 20%
industry‐wide IT solutions like software development, business
process outsourcing, information technology and infrastructure Stock data (as on Oct 14, 2022)
services including next‐gen services like Cloud Computing, Digital Nifty 17,271
Transformations, IoT, Machine Learning, and ER&D, among 52 Week h/l (Rs) 1359 / 877
others. HCL specializes in banking and financial solutions and has
a commendable product and platform portfolio.
Outstanding Shares (mn) 2,714
 HCL launched Cloud smart, an overarching cloud platform to 6m Avg t/o (Rs mn): 3,218
address the USD 300bn cloud services market opportunity by Div yield (%): 4.8
2023. HCL is constantly building competencies in Design Bloomberg code: HCLT IN
Thinking, Block chain, Cyber security, and Cloud Native software. NSE code: HCLTECH

 Despite macro‐economic factors in the US and Europe, HCL is on Stock performance
track to meet its targeted 18‐19% EBIT margins band for FY23. In
HCLTECH Nifty
its recent results, it increased guidance from 12‐14% to 13.5%‐ 120
14.5%. Further, multiple levers in terms of higher realization, 110
utilization and easing of supply side challenges have kept HCL’s 100
long‐term demand story intact, led by IT transformation and cost 90
optimization projects. 80
70
 By 2025, management foresees more than 50% of tech spends in
60
the IT Services market to be Cloud‐based. Having been the first Oct‐21 Feb‐22 Jun‐22 Oct‐22
movers in this space, HCL has tie‐ups all the leading Hyperscalers,
1M 3M 1Y
and are well positioned to leverage emerging opportunities. Absolute
7.6% 12.3% ‐16.2%
Another unique differentiation is their strategy of product and return
service diversification to better serve client needs. Their Products
& Platforms business is not just profitable and cash‐rich, but also
a door‐opener in net new client groups and micro‐verticals. Promoter FII+DII Others
 Employees are the biggest enablers of any IT company and HCL 5.6%
with its dual focus on evolving, grooming, and empowering teams,
as well as diversifying talent pipelines, has continued to thrive on 33.5%
its people competencies. It recently launched its new brand 60.7%
identity to strengthen brand recall.
 HCL’s vision is to be the preferred digital partner for Global 2000
enterprises. To deliver on this vision, the strategic focus is on
client acquisition and retention built on two key directives: one, Financial summary
being selective about the companies pursued and two, building (Rs mn) FY22 FY23E FY24E
deep, strategic relationships as a trusted partner. Net
8,56,510 9,86,331 11,16,662
Revenue
YoY
 With a strong franchise and unflinching focus on momentum and 13.60% 15.20% 13.20%
Growth
growth, we strongly believe HCL will be able to deliver organic EBIDTA 2,01,920 2,19,759 2,60,284
growth in capital‐efficient ways and ride the next phase of YoY
0.70% 8.80% 18.40%
growth. At the same time, it would be able to harness key Growth
disruptions and seize evolving opportunities. PAT 1,35,150 1,42,425 1,67,700
YoY
3.90% 5.40% 17.70%
Growth
ROE 22.20% 21.90% 23.40%
EPS 50 52 62
P/E 19.1 18.1 15.4
BV 228 251 277
P/BV 4.2 3.8 3.4


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related documents carefully before investing.
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report is/are resident outside the United States (U.S.) and is/ are not
materialize and are of general nature which may not be specifically
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be an indicator of future performance. Actual results may differ materially
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from those set forth in projections.
FINRA or required to otherwise comply with U.S. rules or regulations
Technical Analysis reports focus on studying the price movement and regarding, among other things, communications with a subject company,
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nd
Registration No.: NSE, BSE, MCX & NCDEX : INZ000185632 | Member
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DISCLOSURE OF INTEREST RECOMMENDATION PARAMETERS FOR FUNDAMENTAL REPORTS
Name of the Research Analyst : Sidharth Jain Analysts assign ratings to the stocks according to the expected
upside/downside relative to the current market price and the estimated
The analyst hereby certifies that opinion expressed in this research
report accurately reflect his or her personal opinion about the subject target price. Depending on the expected returns, the recommendations are
securities and no part of his or her compensation was, is or will be categorized as mentioned below. The performance horizon is 12 to 18
directly or indirectly related to the specific recommendation and opinion months unless specified and the target price is defined as the analysts’
expressed in this research report. valuation for a stock. No benchmark is applicable to the ratings mentioned
in this report.
Sr.
Particulars Yes/No
No.
Research Analyst or his/her relative’s or YSL’s BUY: Upside greater than 20% over 12 months
1 No
financial interest in the subject company(ies)
Research Analyst or his/her relative or YSL’s ADD: Upside between 10% to 20% over 12 months
actual/beneficial ownership of 1% or more
NEUTRAL: Upside between 0% to 10% over 12 months
2 securities of the subject company(ies) at the end No
of the month immediately preceding the date of REDUCE: Downside between 0% to ‐10% over 12 months
publication of the Research Report
SELL: Downside greater than ‐10% over 12 months
Research Analyst or his/her relative or YSL has
3 any other material conflict of interest at the time No NOT RATED / UNDER REVIEW
of publication of the Research Report
Research Analyst has served as an officer, director
4 No
or employee of the subject company(ies)
YSL has received any compensation from the
5 No
subject company in the past twelve months
YSL has received any compensation for
investment banking or merchant banking or
6 No
brokerage services from the subject company in
the past twelve months

YSL has received any compensation for products
or services other than investment banking or
7 No
merchant banking or brokerage services from the
subject company in the past twelve months
YSL has received any compensation or other
8 benefits from the subject company or third party No
in connection with the research report
YSL has managed or co‐managed public offering
9 of securities for the subject company in the past No
twelve months
Research Analyst or YSL has been engaged in
10 market making activity for the subject No
company(ies)
Since YSL and its associates are engaged in various businesses in the
financial services industry, they may have financial interest or may have

received compensation for investment banking or merchant banking or
brokerage services or for any other product or services of whatsoever
nature from the subject company(ies) in the past twelve months or
associates of YSL may have managed or co‐managed public offering of
ABOUT YES SECURITIES (INDIA) LIMITED
securities in the past twelve months of the subject company(ies) whose
securities are discussed herein. YES Securities (India) Limited (‘‘YSL’’) is a wholly owned subsidiary of YES
BANK LIMITED. YSL is a SEBI registered stock broker holding membership
Associates of YSL may have actual/beneficial ownership of 1% or more
of NSE, BSE, MCX & NCDEX. YSL is also a SEBI registered Category I
and/or other material conflict of interest in the securities discussed
Merchant Banker, Investment Adviser and a Research Analyst. YSL offers,
herein.
inter alia, trading/investment in equity and other financial products along
with various value added services. We hereby declare that there are no
SIDHARTH Digitally signed by
SIDHARTH DEEPAK JAIN disciplinary actions taken against YSL by SEBI/Stock Exchanges.
DEEPAK JAIN 19:12:51 +05'30'
Date: 2022.10.14


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DIWALI

October 14, 2022

Shree Cement Cement 21,189 25,450 20%

Greenply Industries Building Materials 177 220 24%

ICICI Prudential Life Insurance Insurance (Life) 513 650 26%

Prestige Estates Projects Ltd Real Estate 438 550 25%

V‐Guard Industries Ltd Consumer Durables 244 301 23%

SBI Banks 527 655 24%

HCL Technologies Information Technology 1003 1210 20%

SHREE CEMENT Rating BUY

lead to industry consolidation. NSE code: SHREECEM

GREENPLY INDUSTRIES LTD. Rating BUY

ICICI PRUDENTIAL LIFE Rating BUY

INSURANCE CMP : Rs 513

steadily moving towards a balanced business profile through 80

enjoys access to a captive bancassurance channel (ICICI Bank).

PRESTIGE ESTATES PROJECTS Rating BUY

LTD. CMP : Rs 438

pre‐sales ~INR 120 bn for FY23. Mumbai’s commercial portfolio, 1M 3M 1Y

Revenues 63,895 61,443 62,807

V‐GUARD INDUSTRIES LTD. Rating BUY

SBI Rating BUY

 Xpress credit continues to gain good traction with improved TAT Promoter FII+DII Others

HCL TECHNOLOGIES LTD. Rating BUY

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