[Kotak] India Daily, February 18, 2016 - Kotak Securities

For Private Circulation Only. FOR IMPORTANT INFORMATION ABOUT KOTAK SECURITIES’ RATING SYSTEM AND OTHER DISCLOSURES. REFER TO THE END OF THIS MATERIAL.

Contents

Daily Alerts

Sector alerts

Cement: Cement - still not at the threshold

3QFY16 - modest revenue growth, and healthy EBITDA not translating into

the bottom line

Demand - players with capacities in East gained; coverage universe

delivered 8% yoy growth

Asset valuations have come off, but earnings trajectory still not turning the

corner

Cement prices - averages save the day, exit month prices more painful

Consumer Products: Month in review - January 2016: selective price hikes are back

HUVR reintroduces detergent offers; CLGT, GSK-CH, Nestle and BRIT take

selective hikes

RM inflation - sharp drop in crude oil a key tailwind; select agri-inputs and

PFAD inch up

INDIA DAILY February 18, 2016 India 17-Feb 1-day 1-mo 3-mo

Sensex 23,382 0.8 (3.3) (8.2)

Nifty 7,108 0.9 (3.3) (8.1)

Global/Regional indices

Dow Jones 16,454 1.6 2.9 (7.2)

Nasdaq Composite 4,534 2.2 1.0 (10.7)

FTSE 6,030 2.9 4.3 (4.0)

Nikkei 16,235 2.5 (4.3) (17.4)

Hang Seng 18,925 (1.0) (1.6) (14.7)

KOSPI 1,906 1.2 1.5 (2.9)

Value traded – India

Cash (NSE+BSE) 183 200 110

Derivatives (NSE) 3,722 2,639 2,219

Deri. open interest 2,451 2,461 2,368

Forex/money market

Change, basis points

17-Feb 1-day 1-mo 3-mo

Rs/US$ 68.4 4 71 231

10yr govt bond, % 8.1 2 8 17

Net investment (US$ mn)

16-Feb MTD CYTD

FIIs (115) (730) (2,432)

MFs 25 399 1,423

Top movers

Change, %

Best performers 17-Feb 1-day 1-mo 3-mo

EIM IN Equity 18802.5 0.6 21.6 18.4

JSTL IN Equity 1047.5 1.3 5.7 18.3

HZ IN Equity 163.3 (1.3) 17.4 15.9

SUNP IN Equity 855.8 3.4 9.0 13.5

TATA IN Equity 251.3 2.6 6.5 11.2

Worst performers

PNB IN Equity 72.7 0.2 (20.0) (46.6)

UT IN Equity 4.0 (1.2) (27.3) (42.4)

JPA IN Equity 7.3 0.7 (17.0) (41.6)

BHEL IN Equity 105.8 2.4 (25.6) (39.5)

IDBI IN Equity 52.7 0.6 (5.1) (36.5)

For Private Circulation Only. FOR IMPORTANT INFORMATION ABOUT KOTAK SECURITIES’ RATING SYSTEM AND OTHER DISCLOSURES, REFER TO THE END OF THIS MATERIAL.

3QFY16—modest revenue growth, and healthy EBITDA not translating into the bottom line

Our coverage universe reported a 9% yoy growth in revenues—most of it driven by volumes

(+8% yoy), resulting in an impressive 25% yoy growth in EBITDA for 3QFY16, an improvement

from 1HFY16 (revenue growth of 6% and EBITDA of 3%). Lower cost of production is

attributable to lower fuel cost as well as absorption of overhead cost on a larger volume base.

However, higher interest and depreciation cost, especially for mid-sized players that have added

significant capacities, implied that net income growth was restricted to 2% yoy only. The large

players reported net income growth of 8% yoy for 3QFY16, owing to limited capacity increase

during the period.

Demand—players with capacities in East gained; coverage universe delivered 8% yoy growth

Regional players such as JK Cement (+16% yoy), JK Lakshmi (+17% yoy), Shree Cement (+23%

yoy) and Dalmia (+10% yoy) were able to deliver strong double-digit volume growth on the

back of expanded capacities. Interestingly, three out of four of them have expanded capacities

in East India that enjoyed high growth. Adjusted for volume contribution from new capacities,

volume growth for these companies (on extant capacities) was more muted at 2-8%.

Even pan-India players such as ACC, Ambuja and Ultratech reported improved volume trajectory

compared to the low single-digit to declining volumes in the preceding quarters. Management

commentaries suggested 4-5% volume growth for the industry (8% yoy computed for our

coverage universe) of which East stood out for double-digit volume growth, even as factors

such as flood situation in Chennai resulted in volume decline in South.

Asset valuations have come off, but earnings trajectory still not turning the corner

The correction in stock prices over the past 12 months (16%) has made a large part of our

coverage trade at or below replacement cost, especially on an expanded capacity base.

However, earnings have not been supportive with downgrades of the order of 30-36% for

FY2017E over the past 12 months, implying that the stocks still trade rich (7-14X FY2017E

EV/EBITDA) on an earnings basis. Consensus and our own estimates build a strong recovery in

earnings, contingent on demand recovery and consequent price improvement, a recovery that

has been elusive for most of the past three years.

Cement prices—averages save the day, exit month prices more painful

Cement prices continued to trend down through the quarter (-3% qoq, -`10/bag). Reported

earnings would have been a lot poor but for the sharp price increase taken in the month of

September 2015 that allowed for the weighted average realizations to hold some respectability.

Exit prices in December 2015 were down by `20/bag, down 9% from the prices seen in

September 2015. Our channel checks indicate that prices in January 2016 have largely followed

December 2015 levels, though companies have pushed some price increases in February. If prices

do not improve materially from here, we estimate the all-India prices in 4QFY16E can be down

by `10/bag qoq.

Cement India

Cement—still not at the threshold. Cement earnings for 3QFY16 were a combination

of (1) high volume growth, especially more for players with expanded capacities in East

India, (2) lower production cost owing to continued drop in prices of petcoke as

companies looked to move to an even more favorable fuel mix, and (3) stable prices for

players in South and East, even as West and North saw more aggressive price action.

Stock prices have come off, and trade at or below replacement cost for most players,

but a conclusive volume pick-up and aggressive price activity make earnings

expectations seem daunting in the context of current profitability.

\ CAUTIOUS

FEBRUARY 18, 2016

UPDATE

BSE-30: 23,382

Cement India

KOTAK INSTITUTIONAL EQUITIES RESEARCH 3

Among regions, prices were down most in West (-6% qoq, -`17/bag) followed by North

(-3% qoq, -`9/bag) while being relatively stable in East (-2% qoq, -`6/bag) and South (-2%

qoq, -`9/bag). Consequently, players such as Orient and JK Cement saw realizations drop by

5-6% qoq, while Dalmia Bharat was the only player who saw realizations improve

sequentially.

Cost—pet-coke and better asset sweating help lower production cost

Declining prices of petcoke formed another key feature that benefitted companies such as

Shree Cement, Ultratech, and Dalmia—companies working hard to incrementally switch

over to the fuel. Petcoke prices have fallen by as much as 30% qoq, continuing the trend

that has been going on over the past few quarters—prices have declined 45% yoy. Regional

players such as Orient Cement and JK Lakshmi had to bear the brunt of higher overhead

cost as well as interest and depreciation on expanded capacities. Though ramp-up of

capacities helped in reducing overhead cost on a per ton basis.

Housing and infrastructure-related sectors reflect similar demand weakness

Exhibits 9-15 highlight key indicators/demand trends for the real estate sector, steel, paints,

road construction/order and other building materials. The demand weakness is visible in

other building/construction material sectors as well and the improvement in underlying

drivers is yet to show visible signs of large pick-up in activity. The demand from real estate

sector remains weak (lower new launches, high inventories) though ordering/execution from

the road sector is picking up.

Exhibit 1: Despite weak realizations, profitability improved yoy for most of the names due to cost savings (low fuel prices) Operational metrics for cement companies for the quarter ended December 2015

Source: Company, Kotak Institutional Equities

Dec-15 Dec-14 Sep-15 % (yoy) % (qoq) Dec-15 Dec-14 Sep-15 % (yoy) % (qoq)

Sales, (mn tons) 6.0 5.8 5.6 4 7 5.5 5.2 4.8 5 14

Realization (Rs/ton) 4,409 4,497 4,530 (2) (3) 4,299 4,575 4,347 (6) (1)

Operating costs (Rs/ton) 4,055 4,192 4,077 (3) (1) 3,744 3,936 3,736 (5) 0

Profitability (Rs/ton) 354 304 452 16 (22) 555 639 611 (13) (9)


Sales, (mn tons) 11.3 10.5 10.8 7 4 1.9 2.1 2.2 (8) (11)


Operating costs (Rs/ton) 4,177 4,423 4,345 (6) (4) 4,003 4,063 3,882 (1) 3

Profitability (Rs/ton) 927 805 860 15 8 743 702 992 6 (25)


Sales, (mn tons) 4.7 3.8 4.2 23 12 1.8 1.5 1.8 17 0


Operating costs (Rs/ton) 2,750 2,888 2,874 (5) (4) 3,303 3,204 3,305 3 (0)

Profitability (Rs/ton) 754 659 774 14 (3) 380 503 380 (24) (0)


Sales, (mn tons) 1.8 1.5 1.6 16 11 1.1 1.0 1.0 2 4


Operating costs (Rs/ton) 3,847 3,994 4,168 (4) (8) 3,141 3,143 3,158 (0) (1)

Profitability (Rs/ton) 624 565 582 10 7 198 591 360 (66) (45)

JK Cement Orient Cement

ACC Ambuja Cements

Ultratech Cement India Cement

Shree Cement JK Lakshmi Cement

India Cement

4 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Exhibit 2: Volumes increased by 7% for companies under our coverage and other major names Quarterly volumes of cement companies, March fiscal year-ends, 3QFY15-3QFY16 (mn tons)


Exhibit 3: Cement prices were lowest in the North, West and highest in South; realizations declined by Rs3-8/bag qoq for pan-India names Quarterly realizations of cement companies, March fiscal year-ends, 3QFY14-3QFY16 (Rs/ton)


Dec-15 Dec-14 Sep-15 (yoy) (qoq)

ACC 6.0 5.8 5.6 4 7

Ambuja 5.5 5.2 4.8 5 14

Ultratech 11.3 10.5 10.8 7 4

Shree Cement 4.7 3.8 4.2 23 12

India Cement 1.9 2.1 2.2 (8) (11)

JK Cement 1.8 1.5 1.6 16 11

JK Lakshmi Cement 1.8 1.5 1.8 17 0

Dalmia Cement (ex-OCL) 1.7 1.7 1.8 3 (3)

Orient Cement 1.1 1.0 1.0 2 4

OCL India 1.3 1.1 1.1 20 14

Ramco Cements 1.6 1.7 1.8 (5) (11)

Heidelberg 1.1 1.1 1.1 (1) 4

Sagar Cement 0.3 0.3 0.4 (7) (25)

Total 39.9 37.2 38.0 7 5

Growth (%)

3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 1QFY16 2QFY16 3QFY16

Pan India players

ACC 4,364 4,350 4,492 4,577 4,497 4,620 4,460 4,530 4,409 (1) (1) (2)

Ambuja 4,081 4,489 4,674 4,684 4,575 4,532 4,239 4,347 4,299 (9) (7) (6)

Ultratech 4,934 4,901 5,000 5,175 5,228 5,335 5,074 5,205 5,104 1 1 (2)

Total 4,556 4,654 4,782 4,902 4,874 4,962 4,711 4,831 4,727 (1) (1) (3)

North based players

Shree Cement 3,434 3,876 4,009 3,655 3,547 3,544 3,487 3,648 3,504 (13) (0) (1)

JK Cement 4,399 4,778 4,616 4,669 4,558 4,766 4,476 4,750 4,470 (3) 2 (2)

JK Lakshmi Cement 3,539 3,809 4,170 3,922 3,706 3,774 3,567 3,686 3,683 (14) (6) (1)

Total 3,664 4,054 4,183 3,940 3,807 3,871 3,714 3,890 3,750 (11) (1) (1)

South based players

India Cement 4,429 4,002 4,244 4,655 4,765 4,801 5,032 4,874 4,746 19 5 (0)

Dalmia Cement 4,360 4,083 4,335 4,745 4,616 5,340 5,210 4,950 5,016 20 4 9

Orient Cement 3,454 3,287 3,527 3,901 3,734 3,911 3,574 3,519 3,340 1 (10) (11)

Total 4,208 3,879 4,123 4,528 4,492 4,829 4,799 4,623 4,529 16 2 1

yoy growth (%)

Cement India


Exhibit 4: Cement profitability increased yoy despite weak realizations led by lower costs Quarterly profitability of cement companies, March fiscal year-ends, 3QFY14-3QFY16 (Rs/ton)


Exhibit 5: The volume growth for large companies picked up in 3QFY16 compared to previous quarters; South remains weak Quarterly volumes of cement companies, March fiscal year-ends, 3QFY14-3QFY16 (mn tons)

Note: (a) The volumes of North-based companies include some volumes for east as well.


Exhibit 6: Prices declined sequentially; prices are lowest in North, West and high in South, East Quarterly cement prices per region (Rs per 50 kg bag)

Source: Industry, Kotak Institutional Equities estimates

3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16E 1QFY16 2QFY16 3QFY16

Pan India players

ACC 448 559 620 539 304 700 442 452 354 (28.6) (16.1) 16.4

Ambuja 538 982 991 811 639 881 623 611 555 (37.2) (24.7) (13.1)

Ultratech 788 961 892 798 805 1,072 918 860 927 2.9 7.8 15.1

Total 629 859 843 730 631 931 723 695 686 (14.3) (4.8) 8.8

North based players

Shree Cement 673 1,083 1,109 778 659 755 670 774 754 (39.6) (0.5) 14.4

JK Cement 477 913 567 494 565 832 466 582 624 (17.9) 17.8 10.5

JK Lakshmi Cement 447 658 788 611 503 466 306 380 380 (61.2) (37.7) (24.3)

Total 579 944 915 679 604 713 548 642 646 (40.2) (5.4) 7.0

South based players

India Cement 592 259 448 651 702 827 884 992 743 97.2 52.4 6.0

Dalmia Cement 636 282 249 654 558 1,034 1,338 1,215 1,383 437.6 85.8 147.6

Orient Cement 498 425 594 785 591 939 606 360 198 2.0 (54.1) (66.4)

Total 587 301 418 679 628 928 990 942 853 136.7 38.6 35.8

yoy growth (%)

3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 1QFY16 2QFY16 3QFY16E

Pan India players

ACC 5.9 6.5 6.4 5.6 5.8 5.8 6.2 5.6 6.0 (2.4) (0.2) 4.2

Ambuja 5.4 5.9 5.8 4.7 5.2 5.4 5.9 4.8 5.5 1.6 3.2 5.4

Ultratech 9.7 11.9 11.3 10.4 10.5 11.5 11.9 10.8 11.3 5.3 3.8 7.2

Total 20.9 24.3 23.4 20.7 21.5 22.7 24.0 21.2 22.7 2.3 2.6 6.0

North based players*

Shree Cement 3.4 3.8 3.7 3.9 3.8 4.1 4.3 4.2 4.7 16.9 7.9 23.3

JK Cement 1.3 1.5 1.5 1.5 1.5 1.7 1.6 1.6 1.8 4.3 2.9 16.2

JK Lakshmi Cement 1.4 1.7 1.4 1.5 1.5 1.5 1.7 1.8 1.8 15.0 20.0 17.3

Total 6.2 7.1 6.7 6.9 6.8 7.3 7.6 7.5 8.2 13.6 9.4 20.4

South based players

India Cement 2.3 2.7 2.6 2.4 2.1 2.1 2.1 2.2 1.9 (17.9) (7.9) (8.1)

Dalmia Cement (ex-OCL) 1.6 1.9 1.6 1.5 1.7 1.9 1.7 1.8 1.7 9.6 19.9 3.0

Orient Cement 1.0 1.2 1.1 1.0 1.0 1.0 1.0 1.0 1.1 (9.5) 2.5 2.2

Total 4.8 5.7 5.2 4.8 4.8 5.0 4.8 4.9 4.7 (7.9) 2.7 (2.0)

TOTAL 31.9 37.1 35.3 32.4 33.1 35.0 36.4 33.7 35.7 2.9 4.1 7.8

yoy growth (%)

4QFY16E 3QFY16 4QFY15 (qoq) (yoy)

North 252 271 285 (7) (12)

Central 263 273 288 (4) (9)

East 335 345 345 (3) (3)

West 267 271 314 (2) (15)

South 349 357 362 (2) (4)

All India average 300 310 324 (3) (7)

Change (%)

India Cement


Exhibit 7: All-India prices declined by Rs10/bag qoq in January-

February 2016 Regional cement prices (Rs per 50 kg bag)

Source: Industry, Kotak Institutional Equities

Exhibit 8: Cement prices in South, East declined by Rs8-10/bag

qoq in January- February 2016 Regional cement prices (Rs per 50 kg bag)

Source: Industry, Kotak Institutional Equities

Exhibit 9: Poor sales in the real estate sector impacting new launches Launches, absorption and unsold under-construction area, December 2007 - December 2015 (mn sq. ft)

Notes: (a) Data for Bangalore, Mumbai, Gurgaon, Noida, Greater Noida, Chennai, Thane, Pune, Ghaziabad, Faridabad, Navi Mumbai, New Delhi and Hyderabad

Source: PropEquity, Kotak Institutional Equities

125

165

205

245

285

325

365

Feb-1

0

Aug

-10

Feb-1

1

Aug

-11

Feb-1

2

Aug

-12

Feb-1

3

Aug

-13

Feb-1

4

Aug

-14

Feb-1

5

Aug

-15

Feb-1

6

North West All India average

125

165

205

245

285

325

365

405

Feb-1

0

Aug

-10

Feb-1

1

Aug

-11

Feb-1

2

Aug

-12

Feb-1

3

Aug

-13

Feb-1

4

Aug

-14

Feb-1

5

Aug

-15

Feb-1

6

Central East South

0

200

400

600

800

1,000

1,200

0

10

20

30

40

50

60

70

80

90

Dec-

07

Dec-

08

Dec-

09

Dec-

10

Dec-

11

Dec-

12

Dec-

13

Dec-

14

Dec-

15

Launches (LHS) Absorption (LHS) Unsold area (RHS)

Cement India


Exhibit 10: Revenue growth for companies in home improvement sector has remained sluggish Revenues and revenue growth for companies dealing in building materials, 3QFY15-3QFY16 (Rs mn, %)

Source: Companies, Kotak Institutional Equities

Exhibit 11: Demand for paint remains weak; strong sales in 3QFY16 was on low base and in festive

season Aggregate paints volume growth for major companies, 1QFY12-3QFY16 (%)


3QFY15 4QFY15 1QFY16 2QFY16 3QFY16

Century Ply 3,858 4,092 3,709 4,422 3,906

yoy growth (%) 26.3 19.3 2.3 8.6 1.2

Green Ply 3,933 4,290 3,808 4,008 4,219

yoy growth (%) 15.9 15.7 15.6 1.2 7.3

Greenlam 2,148 2,312 2,170 2,301 2,409

yoy growth (%) NA NA NA NA 12.2

Kajaria 5,668 6,053 5,652 6,143 6,043

yoy growth (%) 28.7 15.5 12.3 13.5 6.6

Somany 3,749 4,591 3,936 4,056 4,152

yoy growth (%) 31.8 12.3 18.9 8.4 10.8

CERA 2,093 2,504 1,943 2,253 2,335

yoy growth (%) 30.7 14.8 19.7 12.9 11.6

HSIL 4,621 5,589 4,129 4,294 5,061

yoy growth (%) 26.1 (11.1) 0.2 1.3 9.5

Havells 12,474 13,493 12,671 13,498 13,445

yoy growth (%) 5.3 3.0 (0.8) (1.1) 7.8

V Guard 3,954 4,416 4,993 4,334 4,163

yoy growth (%) 12.0 4.5 4.5 0.5 5.3

Asian Paints (standalone) 30,254 28,870 29,382 30,647 34,240

yoy growth (%) 6.4 6.0 7.2 2.3 13.2

Berger (standalone) 9,783 9,268 10,144 10,303 10,768

yoy growth (%) 10.8 8.6 7.9 7.2 10.1

Kansai (standalone) 8,873 8,078 9,998 9,713 9,681

yoy growth (%) 7.7 8.2 8.2 5.2 9.1

Astral Poly (standalone) 3,031 3,753 2,931 3,229 3,194

yoy growth (%) 14.4 11.4 8.3 6.4 5.4

Finolex Industries 6,429 7,846 6,334 4,667 5,472

yoy growth (%) (2.6) (6.6) (4.4) 20.9 (14.9)

Supreme Industries (standalone) 10,657 11,517 12,780 7,727 10,016

yoy growth (%) 9.4 14.6 0.1 1.8 (6.0)

Total 111,526 116,674 114,578 111,596 119,105

yoy growth (%) 10.8 6.7 5.5 4.4 6.8

14

12

8

16

(3)

8

14

3

10

13

7

15

11 12

3 4

10

7

17

(5)

-

5

10

15

20

1Q

FY12

2Q

FY12

3Q

FY12

4Q

FY12

1Q

FY13

2Q

FY13

3Q

FY13

4Q

FY13

1Q

FY14

2Q

FY14

3Q

FY14

4Q

FY14

1Q

FY15

2Q

FY15

3Q

FY15

4Q

FY15

1Q

FY16

2Q

FY16

3Q

FY16

India Cement


Exhibit 12: Volumes for other building materials has remained weak as well Quarterly pipes volumes of Astral, 1QFY12-3QFY16 ('000 tons)


Exhibit 13: Steel demand remains sluggish in FY2016E Domestic steel demand-supply data, 2014-2016 (mn tons)

Source: JPC, Kotak Institutional Equities

Exhibit 14: Industrial stocks reported a modest decline in order booking in 3QFY16 Order inflows for key industrials and construction companies, 3QFY14-3QFY16 (Rs bn)

Notes: (a) We have used domestic order inflows for Crompton and L&T, for the rest of the companies; we have used total order inflows. (b) We have adjusted LT's order inflows by removing the order booking pertaining to the hydrocarbons segment for FY2012 and FY2013. Order inflows still contain positive bias (on lack of standalone data).

Source: Companies, Kotak Institutional Equities

0

10

20

30

40

50

0

5

10

15

20

25

1Q

FY1

3

2Q

FY1

3

3Q

FY1

3

4Q

FY1

3

1Q

FY1

4

2Q

FY1

4

3Q

FY1

4

4Q

FY1

4

1Q

FY1

5

2Q

FY1

5

3Q

FY1

5

4Q

FY1

5

1Q

FY1

6

2Q

FY1

6

3Q

FY1

6

Astral - pipe volumes (000' tons) (LHS) Growth yoy (%) (RHS)

(mn tons) Apr-Dec 15 Apr-Dec 14 Change (%) FY2015 FY2014 Change (%)

Finished steel production 67.7 69.0 (1.8) 90.7 87.7 3.4

Imports 8.4 6.5 29.2 9.3 5.5 71.0

Exports 2.9 4.1 (29.7) 5.5 6.0 (8.1)

Availability 73.2 71.3 2.6 94.5 87.1 8.5

Less: variation in stock 1.6 2.7 (38.9) 1.6 (0.4) (484.0)

Apparent consumption 71.6 68.7 4.2 92.9 87.6 6.1

Less: double counting 12.6 12.2 3.5 16.6 13.5 23.1

Steel consumption 58.9 56.5 4.4 76.4 74.1 3.1

Quarter ends Year ends

3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16

ABB 18 20 20 14 25 19 19 23 21 41 (6) (6) 61 (17)

BHEL 68 163 11 123 61 101 197 24 62 (10) (38) 1,645 (81) 3

Crompton (domestic) 11 10 11 11 11 15 11 12 10 (1) 49 4 6 (2)

Larsen & Toubro (domestic) 105 159 130 269 216 322 148 145 227 106 103 14 (46) 5

Siemens 20 26 27 30 21 27 22 22 34 4 2 (19) (24) 65

Thermax 14 11 7 11 12 8 9 8 9 (10) (29) 33 (26) (29)

Voltas 2 4 8 4 6 5 6 2 6 163 55 (25) (62) 0

Total 237 393 215 455 348 496 412 235 369 47 26 92 (48) 6

Order inflows (Rs bn) yoy growth (%)

Cement India


Exhibit 15: In road projects, new ordering has been better than previous quarters New orders awarded under NHDP on a quarterly basis (kms)

Source: NHAI, Kotak Institutional Equities

2,786

4,922

6,343

1,109 1,383

2,861

5,400

1,303

2,786

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2011 2012 2013 2014 2015 2016 YTD FY15 YTD FY16

Roads awarding Target(Km)

+89%

+117%

India Cement


Exhibit 16: EBITDA of Pan-India increased by 20% yoy led by higher volumes, lower costs Earnings of cement companies for the quarter ended December 2015 (Rs mn)


Dec-14 Sep-15 Dec-15 yoy qoq

ACC

Net sales 27,631 27,400 28,461 3.0 3.9

EBITDA 1,788 2,638 2,162 20.9 (18.1)

EBIT 348 1,031 603 73.1 (41.5)

PBT 1,393 1,559 1,292 (7.2) (17.1)

PAT 1,272 1,170 1,026 (19.3) (12.3)

Extraordinaries 1,965 — —

PAT-reported 3,236 1,170 1,026 (68.3) (12.3)

Ambuja Cements

Net sales 23,790 20,952 23,558 (1.0) 12.4

EBITDA 3,324 2,944 3,043 (8.4) 3.3

EBIT 1,969 1,392 1,402 (28.8) 0.7

PBT 2,848 2,082 2,287 (19.7) 9.8

PAT 2,477 1,536 1,657 (33.1) 7.9

Extraordinaries 809 — (557)

PAT-reported 3,286 1,536 1,100 (66.5) (28.3)

Grasim Industries

Net sales 78,885 82,975 89,241 13.1 7.6

EBITDA 10,546 13,026 15,982 51.5 22.7

EBIT 6,714 8,449 11,131 65.8 31.7

PBT 6,907 8,586 11,184 61.9 30.3

PAT 3,336 4,885 6,496 94.7 33.0

Extraordinaries — — —

PAT-reported 3,336 4,885 6,496 94.7 33.0

Shree Cement

Net sales 15,419 17,235 18,268 18.5 6.0

EBITDA 3,035 3,885 4,240 39.7 9.1

EBIT 1,253 1,419 1,433 14.4 1.0

PBT 930 1,187 1,200 29.0 1.1

PAT 778 1,308 1,030 32.3 (21.3)

Extraordinaries 159 (21) (1)

PAT-reported 937 1,287 1,029 9.8 (20.1)

UltraTech Cement

Net sales 54,898 56,209 57,473 4.7 2.2

EBITDA 8,457 9,283 10,439 23.4 12.5

EBIT 7,118 7,000 8,519 19.7 21.7

PBT 5,578 5,697 7,262 30.2 27.5

PAT 3,644 3,939 5,086 39.6 29.1


PAT-reported 3,644 3,939 5,086 39.6 29.1

Change (%)

Cement India


Exhibit 17: North based companies gained from higher volumes from ramp-up of new projects Estimate of earnings of cement companies for the quarter ended December 2015 (Rs mn)


Dec-14 Sep-15 Dec-15 yoy qoq

Orient Cement

Net sales 3,835 3,550 3,507 (8.6) (1.2)

EBITDA 607 364 208 (65.7) (42.7)

EBIT 508 276 490 (3.5) 77.6

PBT 474 228 (199) (141.9) (187.0)

PAT 311 280 (131) (142.0) (146.7)


PAT-reported 311 280 (131) (142.0) (146.7)

JK Lakshmi Cement

Net sales 5,559 6,457 6,483 16.6 0.4

EBITDA 754 667 669 (11.2) 0.4

EBIT 540 310 407 (24.7) 31.5

PBT 222 (221) (90) (140.6) (59.3)

PAT 285 (97) (37) (112.9) (62.0)

Extraordinaries (100) (53) —

PAT-reported 185 (150) (37) (119.9) (75.5)

JK Cement

Net sales 7,967 8,679 9,028 13.3 4.0

EBITDA 987 1,064 1,260 27.6 18.4

EBIT 737 830 988 34.0 19.0

PBT 94 140 328 247.4 134.5

PAT 167 137 171 2.2 24.5


PAT-reported 167 137 171 2.2 24.5

Dalmia Bharat

Net sales 7,616 13,981 14,600 91.7 4.4

EBITDA 922 2,819 3,344 262.8 18.6

EBIT 1,075 2,378 2,522 134.6 6.0

PBT 54 666 808 NM 21.3

PAT 1 188 156 NM (17.0)


PAT-reported 1 188 156 NM (17.0)

India Cements

Net sales 10,359 10,791 9,296 (10.3) (13.9)

EBITDA 1,587 2,286 1,462 (7.9) (36.0)

EBIT 923 1,734 910 (1.4) (47.5)

PBT (117) 813 79 (167.6) (90.3)

PAT (117) 450 55 (146.7) (87.9)

Extraordinaries — (40) —

PAT-reported (117) 410 55 (146.7) (86.7)

Change (%)

India Cement


Exhibit 18: Cement comparative valuation

Source: Bloomberg, Kotak Institutional Equities estimates

Market cap. CMP (Rs) Target price EPS (Rs) P/E (X)

Company (US$ mn) 17-Feb (Rs) Rating 2014 2015 2016E 2017E 2014 2015 2016E 2017E

Large-cap. stocks

ACC 3,368 1,226 1,280 SELL 47 46 40 56 26 27 31 22

Ambuja Cements 4,304 193 190 SELL 7 9 6 8 29 23 35 23

Grasim Industries 4,633 3,456 4,200 ADD 212 191 216 279 16 18 16 12

Shree Cement 5,131 10,074 9,125 SELL 249 133 175 315 40 76 57 32

UltraTech Cement 11,124 2,777 2,450 SELL 78 73 69 106 36 38 40 26

Mid-cap. stocks

Dalmia Bharat 815 687 850 BUY NA NA 16 69 NA NA 43 10

India Cements 317 71 80 REDUCE NA (0) 5 8 NA NA 15 9

JK Cement 453 443 640 BUY 11 18 5 35 40 24 94 13

JK Lakshmi Cement 447 260 325 BUY 10 15 (2) 15 27 18 -113 17

Orient Cement 394 132 160 BUY 5 10 3 8 27 14 49 16

EV/EBITDA (X) EV/ton of capacity (US$) P/B (X)

Company 2014 2015 2016E 2017E 2014 2015 2016E 2017E 2014 2015 2016E 2017E

Large-cap. stocks

ACC 15.0 17.2 18.6 11.7 98 103 104 92 2.9 2.6 2.4 2.2

Ambuja Cements 16.4 13.7 17.4 11.7 137 135 129 124 3.0 2.8 2.8 2.6

Grasim Industries 7.9 8.4 8.1 5.5 NA NA NA NA 1.5 1.4 1.3 1.2

Shree Cement 24.6 25.6 19.3 12.6 283 211 192 174 7.5 6.7 6.1 5.2

UltraTech Cement 21.1 20.1 19.3 13.8 207 192 181 163 4.5 4.0 3.7 3.3

Mid-cap. stocks

Dalmia Bharat 20.8 17.9 9.8 6.7 136 95 80 77 1.8 1.8 1.8 1.5

India Cements 9.5 7.2 6.9 5.7 53 54 50 49 0.5 0.6 0.5 0.5

JK Cement 16.0 13.6 11.6 7.2 98 77 79 78 1.8 1.9 1.9 1.7

JK Lakshmi Cement 14.3 13.4 18.7 9.4 94 81 78 74 2.3 2.3 2.4 2.1

Orient Cement 14.2 12.7 21.9 8.9 86 110 73 71 3.3 2.8 2.7 2.4

For Private Circulation Only. FOR IMPORTANT INFORMATION ABOUT KOTAK SECURITIES’ RATING SYSTEM AND OTHER DISCLOSURES, REFER TO THE END OF THIS MATERIAL.

HUVR reintroduces detergent offers; CLGT, GSK-CH, Nestle and BRIT take selective hikes

Refer to Exhibit 2 for complete pricing monitor and Exhibit 3 for ongoing promotional offers

Soaps/detergents. Promotions in soaps continue across brands, especially in multi-packs;

however, we expect promotions to unwind given high inflation in PFAD over the past few

months. Post withdrawal of most offers in detergents by HUVR during last month, it

reintroduced fresh offers (price-offs/freebies) in Surf Excel Matic range (~7-13% cut) and Surf

Excel Quickwash range. P&G has also taken a price-off in Ariel Matic 1 kg SKU (~13% cut).

Personal care items. (1) Shampoos - promotional intensity remains elevated; no major

changes or roll-backs by any player, (2) hair oils – promotional intensity remains high;

Marico has initiated another round of ~6% cut across Parachute CNO SKUs and

(3) toothpaste – Colgate (2-5% hike in Cibaca and Herbal) and HUVR (5% hike in

Pepsodent Germicheck, 1% hike in Close Up Red) have taken selective hikes; Dabur is

running promotions (freebies) in its Meswak range.

Food/beverage items. (1) Biscuits – while promotions continue led by Britannia and Parle

(lesser by ITC), we did notice selective promotional roll-backs by Britannia (e.g. Bourbon `10

pack) and ~9% hike in its NutriChoice range , (2) edible oils – promotional intensity remains

high in larger packs across players; Marico has extended its 1L free offer on 5L packs to

Saffola Total as well, (3) tea– HUVR is running promotions in select SKUs of Red Label, Taaza

and Taj Mahal, (4) coffee – action has heated up with both HUVR (freebies on Bru and Bru

Gold) and Nestle (NutriChoice biscuit free with Nescafe 50 gm SKU) running promotions, and

(5) dairy/MFD/chocolates – GSK has hiked prices of Horlicks range by 6-8% and Boost by

5%, Nestle has rolled back its promotional offers on dahi and milk and taken a 2-3% hike in

its Cerelac range of baby foods and both Nestle (fresh offers on LUPs of Munch and Kit Kat)

and Mondelez are running promotional offers in chocolates.

RM inflation – sharp drop in crude oil a key tailwind; select agri-inputs and PFAD inch up

Refer to Exhibit 4 for detailed RM inflation impact.

Agri-inputs. Barring sugar (up 6% mom, up 25% over past 6 months) and liquid milk (up

7% mom), most other agri-inputs remained benign with tea (both domestic and global),

international coffee and cocoa bean witnessing deflationary trends. However, wheat and

barley have inched up 9% and 21% respectively over the past six months.

Oil commodities basket. Oil basket witnessed another month of deflationary trend led by

crude oil (down 18% mom and 36% over past 3 months), LLP (down 3% mom) and copra

(down 8% mom and 17% over past 3 months). However, PFAD spiked up again by 17%

mom (up 30% over past 3 months) and palm oil inched up 5% mom.

Other commodities. Most paint inputs remained benign (down 1-4% mom) and HDPE

corrected 2% mom. However, caustic soda surged 19% mom.

Consumer Products India

Month in review – January 2016: selective price hikes are back. KIE consumer

universe performed in line with broader markets with 4% absolute decline. Launch

activity remained buoyant, RM tailwinds sustained (barring select agri-inputs and PFAD)

led by fall in crude oil and promotional intensity remains elevated in select categories

(HUVR reintroduced detergent offers). However, we witnessed selective price hikes

(either absolute or via roll-back of promotions), especially on the foods side (GSK-CH in

MFD, BRIT in biscuits and Nestle in dairy and baby foods). Sector valuations remain rich

at 30X FY2017E earnings (35X, ex-ITC). We retain our ‘tread selectively’ stance.

Preferred picks – ITC, Dabur, Britannia, GSK-CH, Bajaj Corp. and Manpasand.

CAUTIOUS

FEBRUARY 18, 2016

UPDATE

BSE-30: 23,382

India Consumer Products


Who benefits? (1) lower crude oil prices is likely to benefit all FMCG companies,

(2) lower copra prices will benefit Marico and Dabur, (3) lower LLP prices will benefit

Marico, Dabur and Bajaj Corp, (4) lower cocoa bean prices will benefit Nestle and

(4) lower tea and coffee prices is likely to benefit TGBL, HUVR and Nestle (lower coffee

prices); However, we have noticed promotional intensity (including price-offs/freebies)

increase in most of these categories including CNO, hair oils, tea, coffee and chocolates.

Who gets impacted? (1) F&B companies such as Britannia, Nestle, GSK Consumer and

Manpasand Beverages may get impacted due to surge in agri-inputs such as sugar, wheat

and barley and (2) jump in PFAD prices and caustic soda is likely to impact soap

companies such as HUL, GCPL, Jyothy Labs and ITC.

Sector (KIE consumer universe) performs in line with broader markets

Our overall coverage universe performed in line with broader markets posting 4% absolute

decline. On a portfolio level, 13 out of 23 stocks under our coverage underperformed the

broader markets with key underperformers being SRL (down 28%), TGBL (down 19%), JUBI

(down 16%), Coffee Day Enterprises (down 10%), CLGT (down 9%) and Nestle (down 9%).

Stocks which outperformed and delivered absolute positive returns were Pidilite (up 8%),

PCJ (up 4%), HUVR (up 1%) and Marico (up 1%). On a 12-month basis, the sector (our

coverage universe ex-ITC) has delivered an outperformance (though absolute returns were

negative) of 12% posting 8% decline versus 20% decline for the broader market.

Sector valuations remain rich at 30X FY2017E earnings (35X, ex-ITC). We retain our ‘tread

selectively’ stance. Preferred picks – ITC, Dabur, BRIT, GSK-CH, Bajaj Corp. and Manpasand.

Key industry/stock developments

New launches/relaunches in HPC

ITC has unveiled its new range of Perfume Sprays crafted by international fragrance experts

with a fun campaign ‘Engage Love Notes’. The perfume Sprays have been crafted by

International experts for long lasting fragrance. Priced at `210 at 120 ml each, the perfume

spray portfolio comprises 4 variants – W1 & W2 for women and M1 & M2 for men.

RB India has launched a premium range in its flagship Dettol brand called Dettol gold – it

has launched a soap and liquid handwash variant. The soap is priced at `32 for a 75 gm

SKU (versus `26 for a basic Dettol variant) and the liquid handwash is priced at `86 for a

250 ml SKU (versus `74 for a basic Dettol handwash variant). The company is running

introductory promotional offers on both variants.

New launches/relaunches in F&B

Adani Wilmar has launched India's first diabetes care oil by the name Fortune VIVO.

Targeted at the growing health conscious community of the country, the cooking oil

helps in controlling type II diabetes and reduces and maintains blood sugar levels, as per

the company claims. Initially, the company will roll out Fortune VIVO in 18 cities and by

March 31, the product will be available across the country. The company, which is

manufacturing VIVO from its Krishnapatnam plant in Andhra Pradesh with an annual

capacity of 40,000-50,000 tons, is expecting this brand to add 2-3% to its topline. VIVO

will cost around `135 per litre, which is at similar levels to Saffola Gold (priced at `700

for 5 liter pack and at 30-40% premium to normal refined oil in the market.

Coca-Cola India has launched its ready-to-drink flavored milk product Vio. The product

has been developed specifically for the Indian palate at the company’s R&D center in

Gurgaon with input from Atlanta and Shanghai centers. Vio has been created with a

blend of saffron, pistachio and almond flavors in two variants – Kesar Treat and Almond

Delight and is priced at `25 for 200 ml Tetrapak. We note while Vio exists globally as a

carbonated milk drink with flavours like Citrus Burst and Peach Mango, it marks Coca-

Cola India's first concerted foray into value-added dairy.



United Breweries has launched a malt-based RTD beverage with under 5% alcohol under

brand ‘Kingfisher Buzz’. The beverage has been launched in two exciting flavors – Berry

and Lychee, packaged in 330 ml bottles and is currently available in Bangalore, Mumbai,

Pune, Thane and Goa. The company plans to roll out Kingfisher Buzz across all major

cities/towns within the next 12 months. We note Kingfisher Buzz competes with Bacardi

Breezer which is a market leader in RTD drinks; as per media estimated volume market

size for RTD is 2 mn cases.

Biscuits category witnessed multiple variant/packaging innovations at the premium end –

(1) Parle launched a mixed berry variant under its Milano centre filled range and

(2) Britannia launched a new multi-pack SKU in its premium Good Day Chunkies range at

`30 for 60 gm SKU in a bid to make it more affordable; we note Britannia’s original pack

of 100 gm retails at `50 and has single-serve packs in a box.

CEO Speak

Bhaskar Bhat, MD – Titan Co.

How did you manage a strong 3QFY16 show? (1) Jewellery sales were clearly

impacted by the end of the golden harvest scheme (GHS), which was back in 3QFY16,

(2) Titan advanced its consumer scheme during 3QFY16 that helped in better sales and

(3) wedding season was strong post-Diwali. It is a combination of all the three that

helped post a strong show. Diwali was comparable with last year, but still nothing great.

Is consumer demand back? Do you think the growth in Q3 was a one-off? No

visible signs yet – volume growth is currently in single digits. Customer walk-ins are still a

challenge. It will be tough to sustain momentum witnessed in 3QFY16 and growth rates

in jewelry business are likely to moderate. Demand is expected to revive in 2HCY16, as

per the company.

Challenges from implementation of new PAN card norms? Tough to gauge impact

clearly – but it is impacting footfall as customers who are habituated to buying in a

certain way find it a big dampener for sure.

Strategy to beat slowdown? Plan to launch new products and introduce new consumer

schemes and revive the golden harvest scheme. For example in watches, the launch of

new products including new smart watch JUXT has helped bring back customer to the

store. Online presence is another focus area and product like JUXT have done very well

on online formats.

Initial response on JUXT and step forward? Initial response on JUXT has been very

good and Titan is working on the next versions of the watch with key focus to enhance

the functionality of a watch. The company is also looking at launching a ladies’ watch

under JUXT brand in the next six months and it is working on many new devices based on

the technology developed by IIT Madras Research Park.

Sales from online channels? Titan has seen very good traction from online channels –

the company registered `1 bn sales so far from online market places and `200 mn from

the company’s own website. Titan expects online to account for ~10-15% of total sales

in 10 years.



Suresh Narayanan, MD – Nestle India

Why was Maggi’s relaunch low-key? Initial focus was to get Maggi out in the market

as quickly as possible once the due-diligence process was completed after the Bombay

High Court verdict. Also, the company was starting its factories after a span of five

months and there is a ramping up process that is involved since production had come to

a grinding halt. Lastly, Nestle didn’t launch Maggi uniformly across the country as some

states allowed production and some didn't.

Why is the rollout of Maggi variants taking time? After good response to base

variant (masala), the company has just come out with the second variant (chicken), which,

prior to the recall, was a popular one. Once this variant is on shop shelves, Nestle will

look at more. Also, the company is currently taking a call on whether all nine variants that

existed earlier should be out or a few of them and is also working on new variants

altogether and these should hit the market in the coming months.

Initiatives to reduce Nestle India's dependence on Maggi? Nestle will be spending

CY2016 on expanding the portfolio of the existing categories. In some of the categories

that have not delivered as strongly in the past such as chocolates, confectionery and

beverages, the company is looking at new propositions along with adding new brands.

The third stage would be to look at new product categories.

Naresh Bhansali, CEO – Emami

Kesh King integration and ramp-up? In the past nine months, there had been some

challenges in integration. The problem of unsold inventories with its wholesalers has been

resolved though buyback of such stocks and Emami’s distribution channels have taken

over the marketing responsibility of the Kesh King products. The company is taking steps

to grow this brand and expect the brand to generate revenue of around `3.3 bn to `3.5

bn in FY2017. Emami is also planning to introduce other hair care products under the

Kesh King brand after consolidating its position in the hair oil segment.

Competition from Patanjali? This will help the market for ayurvedic and herbal

products to grow in the country.

Emami is expecting to commission its Guwahati plant in October this year. This will be a

mega plant, which will manufacture personal care products. The plant would be built at a

cost of `2 bn.



Exhibit 1: Key new launches in January 2016




Other newsflow –

As per media reports, Hindustan Unilever (HUL) is planning to enter into spices and

seasoning mixes segment under the Knorr brand. This segment is currently dominated by

domestic companies, of which many are regional and local players. The company is

already testing the products in a few markets and will make a formal launch soon with a

range of eight variants as Knorr Chef’s Masalas across India. The company has also used

its global expertise to create the new range of superior blended spices in a ‘zip lock’

packaging to help retain the colour and characteristic flavours of the masalas for the

entire usage duration. It also ensures convenient storage. Unilever, the Anglo-Dutch

parent of HUL, sells seasonings and spices globally in 87 countries. According to a report

by Technopak, about 15% of the Indian spices market is branded with veteran players

such as MDH, Everest, Eastern, Catch and Ruchi among the leaders. Most of these players

started with serving the local market and are now national level brands. Meanwhile, the

spices market is hotting up with new entrants. Nestle entered the market two years ago

with its masala mix under the Maggi brand. Kerala-based Keya, Baba Ramdev’s Patanjali,

and Mother’s Recipe are also targeting the young consumers with their ready-to-

assemble spice mixes and convenient packaging, including single-use sachets. Recently,

Tata Chemicals announced its entry into the spices business under a newly created

umbrella brand— Tata Sampann. Currently, it has products such as I-Shakti besan (gram

flour) and pulses.

Godrej Consumer Products (GCPL) has acquired Kenya-based Canon Chemicals, a

manufacturer and distributor of personal and home care products, for an undisclosed

amount. The major brand categories of the 40 year old family run company include

petroleum jelly, air fresheners, detergents and candles. Its major brand is Valon, a

petroleum jelly. In 2015, the annualized revenue of Canon Chemicals was Kenyan

Shillings 1.15 bn (~`760 mn). This acquisition will help GCPL to further build its presence

in the Africa market. GCPL’s Africa business currently has annualized revenues of US$200

mn, accounting for~30% of its international sales.

ITC plans to expand its presence in fragrance business by foraying into newer categories

and premiumizing its portfolio this year, buoyed by its rise to becoming the second

largest player in the deodorant and body spray market. As mentioned earlier, it has just

forayed into perfume spray segment, having established its presence in deodorant and

cologne spray segments with its Engage brand. The fragrance business, where margins

are high at 18-20%, can also help the company achieve breakeven in its personal care

business faster. As per Nielsen data (per media reports), while the overall growth in

consumer spending on deodorants and body sprays declined to 5% in 2015, it went up

by 25% for ITC. ITC has ~10% share in deodorants as per Nielsen report for December,

with market leader Vini Cosmetics' Fogg at 16% and No3 with Park Avenue at 6.5%. The

overall market stands at `23 bn. ITC plans aggressive digital marketing push for its latest

launch - Engage perfume spray. The company has tied up with Google to roll out a

consumer campaign.



Post the success of Pass Pass Pulse in Kachcha Aam Flavour, which in a very short time

has become one of the most liked candies in the country, Noida-based DS Group has

launched 'Pulse Guava', its second product in the hard boiled candy segment. The candy

is being launched pan India leveraging on the distribution network of Pass Pass to reach

out to the target group. The initial phase of the launch will be supported with BTL (below

the line) activities like in-shop display, exclusive merchandise promotion and focused

sampling through various consumer contact activities to garner visibility and reach.

Subsequently, post the all India launch, a plan for ATL (above the line) activities will be

drawn up to further give a push to the brand. Test marketing of Pulse first began in

January last year under Pass Pass - the umbrella brand for the confectionery business of

the DS group, the makers of Baba chewing tobacco, Pass Pass mouth freshener and

Rajnigandha paan. By April the product was placed in Gujarat, Rajasthan and some areas

of Delhi NCR and in subsequent months the distribution started pan India in phases. In

just six months, without any promotions or formal launch, the candy had already done

about `500 mn in sales running purely on word of mouth and has crossed `1.05 bn sales

as of January 31, 2016 surpassing company expectation. From the initial two

manufacturing units, the company currently has six units - two in Telangana, two in

Gujarat, one in Uttarakhand, and one in Greater Noida. It plans to add two more

manufacturing units very soon in order to meet the increasing demand. We believe the

success of Pass Pass Pulse is a big missed opportunity for Dabur which could have

launched a similar innovation under its strong Hajmola franchise; we estimate

Hajmola brand size at `2-2.5 bn (both candies and tablets combined) in FY2016E.

Kalyan Jewellers has recently announced that it will hit the 100 showroom mark by the

end of this financial year by adding 14 new showrooms, with 7 in India and 7 in West

Asia. The company is investing `3.5 bn to expand its distribution capabilities, especially in

the northern and eastern regions of the country and will spend another `2.5 bn for the

proposed entry into Qatar. In India, the company is consolidating its presence in the

eastern region by launching 2 showrooms in Kolkata. The company had made a foray

into the east earlier this year with the Bhubaneswar showroom. Kalyan is also making an

entry into Rajasthan with 3 showrooms. It will be opening 2 showrooms in Chennai

taking its tally to 5 in the country's biggest jewellery market. Kalyan Jewellers flagship

showroom in Chennai was inaugurated earlier this financial year with an investment of `2

bn on April 17. In West Asia, the company plans to make a foray into Qatar with 7 new

showrooms. Kalyan has gradually expanded its footprint in the north and east regions of

the country and the new launches in Rajasthan and Kolkata will further strengthen its

presence. It has also had tremendous success in West Asia and this is prompting it to

enter new GCC markets, with a sizeable Indian population. Qatar presence is critical for

Kalyan to push the Gulf's share of the group turnover to a 40% mark, which is its

medium-term target. Kalyan remains confident of reaching the `130 bn topline target set

for this fiscal and also achieve the milestone of 100 showrooms. In this financial year,

Kalyan has already launched 8 new showrooms. With these new additions, the company

will have 80 showrooms in India and 20 showrooms in West Asia.

Parle Products is planning to launch new products in snacks and premium products

categories next year as it looks to reduce dependence on biscuits segment for future growth.

The company is targeting to increase share of snacks and confectioneries in total sales to

up to 30% in three years from 10% currently. Growth in biscuits has been muted this year.

Premium products are growing but at a slower pace compared with last year. The company

is looking to revive growth through innovative product launches in the next financial year.

Parle will also focus on increasing its distribution network by 20-25%. It is planning to

open more distribution network in South and East regions of the country. At present Parle

sells its products through 5.8 mn outlets (direct + indirect) in India. Biscuits account for

80% of Parle's total sales, while snacks and confectioneries contribute 3% per cent and

17%W, respectively. The company will launch products with existing brands and may also

introduce new brands. Parle had tested market for new product categories like cakes and



rusk last year and is now selling them all over the country through their existing distribution

channels.

Twenty-two years after selling the country's most loved soft drink brands Thums Up,

Limca, Citra and Gold Spot to US beverage giant Coca-Cola, Ramesh Chauhan, the

founder of India's largest packaged water brand Bisleri, is planning a comeback with a

new range of fizzy drinks. His company is test marketing four new flavors including Pina

Colada, Fonzo (a fruity flavour), Spicy Cola and Limmonata (a lemony drink). These are

being manufactured at five locations around the country. The products may be launched

as early as next month, as per media reports. The soft drinks are being priced at around

`15 for 300 ml PET bottles and `10 for 200 ml PET bottles and will be later launched in

cans as well. Last year, Bisleri launched a natural energy drink Urzza to compete with

foreign brands such as Red Bull.

PepsiCo India narrowed losses and posted a 13% increase in revenue during FY2015 as it

pruned fixed costs and streamlined operations to fine-tune focus on distribution,

marketing and advertising. PepsiCo's net loss eased to `1.77 bn from `2.8 bn a year

earlier, according to filings with the Registrar of Companies. Revenue climbed to `81.3

bn. PepsiCo has been on bringing down fixed costs, while at the same time stepping up

spends on advertising and marketing - its ad spends went up to `8.54 bn up from `7.8

bn a year ago. The company has been working towards reducing operating layers and

brought in global CEO Indra Nooyi's 'Power of One' strategy aimed at streamlining sales,

distribution and stocking. PepsiCo attained operational efficiencies, cost savings and

supply-chain advantages after divesting its wholly owned north India bottling operations,

with the exception of Bihar state, to franchisee partner Ravi Jaipuria's RJ Corp in 2014.

North and east India contribute close to 40% of PepsiCo's national sales.

In less than a decade of its entry, Danish brewer Carlsberg has turned profitable in the

Indian beer market, posting its first profit in the October-December quarter on the back

of rising demand for its strong beer brands. Its Indian business grew 42% in a slightly

growing market. The business also delivered significant earnings improvement, and for

the first time turned profitable. This was driven by a combination of volume growth and

tight cost control. Unlike most global markets where its top seller is the milder version of

the eponymous lager, Carlsberg's Indian unit has been focusing more on strong beer

such as Tuborg Strong and Elephant because strong beer accounts for 80% of overall

beer volume sales in the country. The company also claimed that Tuborg is now the

second largest beer brand in the country. Tuborg has higher volume than Carlsberg.

Carlsberg generally is higher priced than Tuborg, so in terms of value the difference

between Tuborg and Carlsberg is relatively modest. A year ago, United Breweries controlled

51% share in the market, followed by SABMiller at 23% and Carlsberg with 15% share.

Carlsberg, which entered the country in 2006, invested `2 bn in the market two years

ago in a bid to become a big player in the India's increasingly competitive beer market.

Heeding Prime Minister Narendra Modi's call for more fruits-based drinks, Coca-Cola will

pilot-launch a new Fanta variant called the Fanta Green Mango, which is a juice-based

fizzy drink; the move is aimed at extending the Fanta brand and help the farming

community. The company is also looking to have more offerings to extend the Fanta

brand and widen its footprint. Anchored in an Indian taste profile, the new product will

extend the Fanta portfolio, widen its footprint and connect with consumers better. The

new product will be available in Delhi-NCR to begin with, and will initially retail through

e-commerce platform Grofers, and will be priced at `30 for a 300 ml can.

UK's Twiss Drinks has tied up with diversified business house Amarjothi Group to enter

the country's aerated natural fruit juice market. Twiss, which debuted in London in 2011,

has been introduced in multiple variants in international markets. The beverages will be

manufactured in Pune and have 10% juice content. It is likely to be priced at `40 for a

250 ml can, as per media reports.



Exhibit 2: KIE Consumer Pricing monitor

Source: Kotak Institutional Equities

MRP (Rs)

Category/Brand/SKU Jan-16 Norm Wt Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 1M 3M 6M 1Y

Soaps

Dove Moisturising Cream 3*100gm 174 100g 61 61 61 61 58 58 58 58 58 58 58 58 58 58 — — — (4)

Dove Moisturising Cream 75gm 46 100g 64 64 64 64 61 61 61 61 61 61 61 61 61 61 — — — (4)

Breeze Lemon Splash (3+1)*75gm 30 100g 10 10 10 10 10 10 10 10 10 10 10 10 10 10 — — — —

Hamam 100gm 26 100g 26 26 26 26 26 26 26 26 26 26 26 26 26 26 — — — —

Lifebuoy Clini Care 10 Complete125gm 52 100g 42 42 42 42 42 42 42 42 42 42 42 42 42 42 — — — —

Lifebuoy Total 125gm 24 100g 19 19 19 19 19 19 19 19 19 19 19 19 19 19 — — — —

Lifebuoy Total 3*100gm 58 100g 19 19 19 19 19 19 19 19 19 19 19 19 19 19 — — — —

Liril 2000 Soft Aloevera Lemon 125gm 50 100g 40 40 40 40 40 40 40 40 40 40 40 40 40 40 — — — —

Lux Creamy White 125gm 48 100g 38 38 38 38 38 38 38 38 38 38 38 38 38 38 — — — —

Lux Sandal & Cream 150gm 38 100g 25 25 25 25 25 25 25 25 25 25 25 25 25 25 — — — —

Pears Pure Gentle 3*125gm 168 100g 45 45 45 45 45 45 45 45 45 45 45 45 45 45 — — — —

V ivel Satin Soft 3*100gm 70 100g 23 23 23 23 23 23 23 23 23 23 23 23 23 23 — — — —

V ivel s Luxury Olive Butter 4*100gm 100 100g 25 25 25 25 25 25 25 25 25 25 25 25 25 25 — — — —

F iama Di Wills Clear Spring 125gm 60 100g 46 46 46 46 48 48 48 48 48 48 48 48 48 48 — — — 3

F iama Di Wills Soft Green 3*100gm 180 100g 56 56 56 56 56 56 56 56 56 58 58 60 60 60 — 3 7 7

F iama Di Wills Mild Dew (3+1)*115gm 180 100g 37 37 37 37 37 37 37 37 37 38 38 39 39 39 — 3 7 7

Cinthol Original 100gm 33 100g 33 33 33 33 33 33 33 33 33 33 33 33 33 33 — — — —

Cinthol Original 4*100gm 127 100g 32 32 32 32 33 33 33 33 33 33 33 32 32 32 — (4) (4) —

Godrej No 1 Lime & Aloevera (3+1) *75gm 40 100g 13 13 13 13 13 13 13 13 13 13 13 13 13 13 — — — —

Godrej No 1 Saffron & Milk Cream (3+1) *100gm 68 100g 17 17 17 17 17 17 17 17 17 17 17 17 17 17 — — — —

Shower Gels/Facewash/Handwash/Bodywash

Facewashes

Pears Pure & Gentle Cleansing 60gm 80 100g 117 133 133 133 133 133 133 133 133 133 133 133 133 133 — — — —

Lakme Strawberry 50ml 99 100ml 180 180 180 198 198 198 198 198 198 198 198 198 198 198 — — — 10

Dove Beauty Moisture 50gm 105 100g 198 198 198 210 210 210 210 210 210 210 210 210 210 210 — — — 6

Ponds Daily Act Cleansing System 50gm 70 100g 130 130 130 130 130 130 130 130 130 140 140 140 140 140 — — 8 8

Fair & Lovely Multiv itamin 50gm 55 100g 100 100 100 100 100 100 100 100 100 110 110 110 110 110 — — 10 10

Olay Cleanser Total Effect Foaming 100gm 260 100g 245 245 245 245 245 245 260 260 260 260 260 260 260 260 — — — 6

F iama Di Wills Aqua Pluse Men 100gm 150 100g 100 100 100 100 100 100 100 100 100 100 100 100 100 100 — — — —

Handwash

Lifebuoy Total 215ml 69 100ml 30 30 30 30 30 30 30 30 30 32 32 32 32 32 — — 8 8

Lifebuoy Activfresh Pouch 185ml 40 100ml 20 20 20 20 20 20 20 20 20 22 22 22 22 22 — — 8 8

Lifebuoy Colour Changing Pump 200ml 85 100ml 40 40 40 40 40 40 40 40 40 43 43 43 43 43 — — 6 6

Bodywash/ Shower Gels

F iama Di Wills Shower Gel Clear Spring 200ml 160 100ml 80 80 80 80 80 80 80 80 80 80 80 80 80 80 — — — —

Lux Bodywash Soft Luxury Strawberry & Cream 240ml 145 100ml 60 60 60 60 60 60 60 60 60 60 60 60 60 60 — — — —

Cinthol Shower Gel Energy Deodorize 200ml 150 100ml 60 60 60 60 60 60 60 60 60 60 60 60 60 60 — — — —

Detergents

Detergent Bars

Wheel Active Blue 140gm 5 100g 4 4 4 4 4 4 4 4 4 4 4 4 4 4 — 4 4 (4)

Rin Advance 85gm 5 100g 6 6 6 6 6 6 6 6 6 6 6 6 6 6 — — — —

Rin Advance 150gm 10 100g 6 6 6 6 6 6 6 6 6 6 6 6 6 6 — — — —

Rin Advance 250gm 17 100g 7 7 7 7 7 7 7 7 7 7 7 7 7 7 — — — —

Surf Excel Bar 100gm 10 100g 10 10 10 10 10 10 10 10 10 10 10 10 10 10 — — — —

Surf Excel 250gm 27 100g 11 11 11 11 11 11 11 11 11 11 11 11 11 11 — — — —

Surf Excel 4*200gm 88 100g 11 11 10 10 11 11 11 11 11 11 11 11 11 11 — — — —

Tide 135gm 10 100g 7 7 7 7 7 7 7 7 8 8 8 8 8 8 — — 13 13

Tide 85gm 6 100g 7 7 7 7 7 7 7 7 9 9 9 9 9 9 — — 21 21

Tide 4*250gm 78 100g 7 7 7 7 7 7 7 7 8 8 8 8 8 8 — 4 8 8

Normalised price in Rs (adjusted for grammage changes) Change (%)



Exhibit 2: KIE Consumer Pricing monitor (continued)


MRP (Rs)


Detergent Powders

Wheel Active Lemon & Jasmine 1kg 46 100g 4 4 4 4 4 4 4 5 5 5 5 5 5 5 — 2 2 5

Wheel Act Gold 1.5kg 86 100g 6 6 6 6 6 6 6 6 6 6 6 6 6 6 — — — —

Rin Advance 1kg 76 100g 8 8 8 8 8 8 8 8 8 8 8 8 8 8 — — — 1

Rin Matic 1kg 115 100g 12 12 12 12 12 12 12 12 12 12 12 12 12 12 — — — —

Surf Excel Easy Wash 1.5kg 187 100g 12 12 12 12 12 12 12 12 12 12 12 12 12 12 — — — —

Surf Excel Matic 1kg 185 100g 21 19 19 19 19 19 19 19 19 19 19 19 19 19 — — — —

Surf Excel Matic Front Load 1kg 205 100g 23 21 21 23 20 20 20 21 21 21 21 22 22 21 (5) — — —

Surf Excel Quickwash 1kg 192 100g 19 19 19 19 19 19 19 19 19 19 19 19 19 19 — 4 4 4

Ariel Complete Pp 1kg 185 100g 19 19 16 16 16 19 19 19 19 19 19 19 19 19 — — — —

Ariel 24Hour Fresh Complete 1kg 205 100g 21 21 21 21 21 21 21 21 21 21 21 21 21 21 — — — —

Ariel Matic Complete Box 1kg 205 100g 19 23 20 23 23 23 23 23 20 23 23 24 24 21 (13) (11) (11) (11)

Tide Natural Lemon & Chandan 150gm 10 100g 7 7 7 7 7 7 7 7 7 7 7 7 7 7 — — — —

Tide Plus 1kg 90 100g 10 10 10 10 9 9 9 9 9 9 9 9 9 9 — — — (6)

Henko 1kg 135 100g 14 14 14 14 14 14 14 14 14 14 14 14 14 14 — — — —

Fabric Conditioners/ Dishwash/ Floor Cleaners

Fabric Conditioners/Liquids

Rin Liquid Fabric Blue Perfect Shine 250ml 49 100ml 20 20 20 20 20 20 20 20 20 20 20 20 20 20 — — — —

Comfort Fabric Conditioner Anti Bacterial 200ml 48 100ml 23 23 23 23 23 23 23 23 23 23 24 24 24 24 — — 4 4

Ezee Detergent Liquid 500gm 90 100g 18 18 18 18 18 18 18 18 18 18 18 18 18 18 — — — —

Dishwashing Bar/Gels/Powder

Vim Drop Dishwash Active Gel Green Lime 250ml 58 100g 23 23 23 23 23 23 23 23 23 23 23 23 23 23 — — — —

V im Drop Dw Active Gel Green Lime 500ml 105 100g 21 21 21 21 21 21 21 21 21 21 21 21 21 21 — — — —

V im Utensil Bar 130gm 10 100g 7 7 7 7 7 7 7 7 7 7 7 7 7 7 — — — —

V im Utensil Bar 200gm 17 100g 9 9 9 9 9 9 9 9 9 9 9 9 9 9 — — — —

Floor Cleaners/Other Cleaners

Cif All Puprose Cleaner White 120ml 29 100ml 24 24 24 24 24 24 24 24 24 24 24 24 24 24 — — — —

Domex F loor Cleaner Thick 500ml 70 100ml 14 14 14 14 14 14 14 14 14 14 14 14 14 14 — — — 3

Sanifresh Toilet Cleaner Shine 1L 114 100ml 10 10 11 11 11 11 11 11 11 11 11 11 11 11 — — — 19

Oral Care

Toothpaste

Colgate Cdc 150gm 60 100g 38 38 38 38 38 38 38 38 40 40 40 40 40 40 — — 5 5

Colgate Cibaca 175gm 45 100g 24 24 24 24 24 25 25 25 25 25 25 25 25 26 2 2 2 7

Colgate Active Salt 100gm 48 100g 46 46 46 46 46 46 46 46 46 46 46 46 48 48 — 4 4 4

Colgate Maxfresh Blue 150gm 88 100g 57 57 57 57 57 57 57 57 59 59 59 59 59 59 — — 2 2

Colgate Sensitive Pro Relief 70gm 110 100g 150 150 150 150 150 157 157 157 157 157 157 157 157 157 — — — 5

Colgate Sensitive 80gm 100 100g 125 125 125 125 125 125 125 125 125 125 125 125 125 125 — — — —

Colgate Total Adv Health 140gm 102 100g 71 71 71 71 71 71 73 73 73 73 73 73 73 73 — — — 3

Pepsodent 2 In 1 150gm 88 100g 56 56 56 56 57 57 57 57 57 59 59 59 59 59 — — 2 5

Pepsodent Centre Fresh 150gm 86 100g 55 55 55 55 55 55 55 55 57 57 57 57 57 57 — — 5 5

Pepsodent Whitening 150gm 86 100g 56 56 56 56 57 57 57 57 57 57 57 57 57 57 — — — 2

Pepsodent Exp Prot Complete 150gm 105 100g 70 70 70 70 70 70 70 70 70 70 70 70 70 70 — — — —

Pepsodent Expert Prot Sensitive 80gm 80 100g 100 100 100 100 100 100 100 100 100 100 100 100 100 100 — — — —

Pepsodent Expert Prot Pro Sensitive 80gm 99 100g 124 124 124 124 124 124 124 124 124 124 124 124 124 124 — — — —

Close Up F ire Freeze 150gm 100 100g 67 67 67 67 67 67 67 67 67 67 67 67 67 67 — — — —

Close Up Red 150gm 82 100g 54 54 54 54 54 54 54 54 54 54 54 54 54 55 1 1 1 1

Babool 180gm 42 100g 23 23 23 23 23 23 23 23 23 23 23 23 23 23 — — — —

Dabur Red 200gm 88 100g 42 42 42 42 42 42 42 42 44 44 44 44 44 44 — — 5 5

Meswak 200gm 90 100g 41 41 42 42 42 42 42 42 45 45 45 45 45 45 — — 7 10

Sensodyne Fresh Gel 80gm 100 100g 125 125 125 125 125 125 125 125 125 125 125 125 125 125 — — — —

Toothpowders

Colgate 200gm 67 100g 32 32 32 32 34 34 34 34 34 34 34 34 34 34 — — — 5

Dabur Lal Dant Manjan 100gm 38 100g 35 35 35 35 35 35 38 38 38 38 38 38 38 38 — — — 9

Mouthwashes

Colgate Plax Complete Care 250ml 120 100ml 46 46 46 46 46 46 46 46 46 46 48 48 48 48 — — 4 4

Colgate Plax Freshmint 250ml 110 100ml 42 42 42 42 42 42 44 44 44 44 44 44 44 44 — — — 5






MRP (Rs)


Shampoo bottles

Clear Active Care Antidandruff 80ml 69 100ml 86 86 86 86 86 86 86 86 86 86 86 86 86 86 — — — —

Clinic Plus Anti Dandruff 80ml 45 100ml 53 55 55 57 57 57 57 57 45 45 45 45 45 45 — — (21) (18)

Dove Dandruff Care 80ml 56 100ml 86 94 94 94 94 94 94 94 63 63 63 63 70 70 — 12 (25) (25)

Sunsilk Anti Dandruff 80ml 47 100ml 74 75 75 75 75 75 75 75 59 59 59 59 59 59 — — (22) (22)

Tresemme Hair Fall Defense 100ml 50 100ml 80 83 83 83 83 83 83 83 56 56 56 56 56 56 — — (33) (33)

Head & Shoulders Anti Hair Fall 170ml 135 100ml 96 96 96 96 96 96 96 79 79 79 79 79 79 79 — — — (17)

Pantene Hair Fall Control 180ml 110 100ml 86 86 86 86 86 86 86 61 61 61 61 61 61 61 — — — (29)

Dove Daily Shine 80ml 56 100ml 86 94 94 94 94 94 94 94 63 63 63 63 70 70 — 12 (25) (25)

Sunsilk Black Shine 80ml 47 100ml 74 75 75 75 75 75 75 75 59 59 59 59 59 59 — — (22) (22)

Head & Shoulders Smooth & Silky 170ml 135 100ml 96 96 96 96 96 96 96 79 79 79 79 79 79 79 — — — (17)

Pantene Long Black 180ml 110 100ml 86 86 86 86 86 86 86 61 61 61 61 61 61 61 — — — (29)

Dabur Vatika Black Shine Amla 90ml 56 100ml 62 62 62 62 62 62 62 62 62 62 62 62 62 62 — — — —

Skin Creams/Lotions/Talcs

Face Creams/Fairness Creams/Facial Cleansers

Fair & Lovely Skin Cream Multi V itamin 50gm 89 100g 178 178 178 178 178 178 178 178 178 178 178 178 178 178 — — — —

Fair And Lovely Foreever Glow 25gm 59 100g 236 236 236 236 236 236 236 236 236 236 236 236 236 236 — — — —

Ponds Face Cream Oil Control Skn Mattify ing 100gm 130 100g 130 130 130 130 130 130 130 130 130 130 130 130 130 130 — — — —

Olay Cleanser Total Effect Foaming 100gm 260 100g 245 245 245 245 245 245 260 260 260 260 260 260 260 260 — — — 6

Anti-Ageing/Special Creams

Ponds Skin Cream White Beauty Naturals 50gm 249 100g 498 498 498 498 498 498 498 498 498 498 498 498 498 498 — — — —

Ponds Skin Cream Age Miracle Daily 50ml 575 100ml 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,150 1,150 1,150 1,150 — — 5 5

Olay Age Protect Anti Ageing Cream 40gm 290 100g 688 688 688 688 688 688 688 688 688 688 725 725 725 725 — — 5 5

Olay Skin Cream Total Effect Normal 50gm 799 100g 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,598 1,598 1,598 1,598 — — 3 3

Body Lotions

Dove Go Fresh Normal Skin 400ml 350 100ml 75 81 81 81 81 81 81 81 81 88 88 88 88 88 — — 8 8

Ponds Drm Flower 100ml 68 100ml 65 65 65 65 65 65 65 65 65 68 68 68 68 68 — — 5 5

Vaseline Healthy White 100ml 95 100ml 85 95 95 95 95 95 95 95 95 95 95 95 95 95 — — — —

Parachute Normal 100ml 59 100ml 59 59 59 59 59 59 59 59 59 59 59 59 59 59 — — — —

Talcs

Ponds Talc Dream Flower Pink 100gm 65 100g 55 55 60 60 60 60 60 60 60 60 60 60 60 65 8 8 8 18

Cinthol Talc Original 100gm 45 100g 45 45 45 45 45 45 45 45 45 45 45 45 45 45 — — — —

Deodorants

Deodorants

Axe Dark Temptation 150ml 195 100ml 120 120 120 120 120 120 120 120 120 120 120 130 130 130 — 8 8 8

Dove Original Anti Perspirant 169ml 185 100ml 109 109 109 109 109 109 109 109 109 109 109 109 109 109 — — — —

Cinthol Spray Dive 150ml 175 100ml 117 117 117 117 117 117 117 117 117 117 117 117 117 117 — — — —

Zatak Avenger 150ml 150 100ml 100 100 100 100 100 100 100 100 100 100 100 100 100 100 — — — —

Set Wet Rave 150ml 180 100ml 110 110 110 110 110 120 120 120 120 120 120 120 120 120 — — — 9

Home Insecticides

Coils/Machine/Mats

Good Knight Mosquto Coil Low Smoke 12Hr 32 31 31 32 32 32 32 32 32 32 32 32 32 32 32 — — — 3

Goodknight Coil Maha Jumbo 10P 31 31 31 31 31 31 31 31 31 31 31 31 31 31 31 — — — —

Goodknight Machine Activ Combi 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 — — — —

Hair Oils

Coconut Oils

Parachute coconut oil 100ml 31 100ml 29 34 31 34 34 34 34 32 34 34 34 33 33 31 (6) (9) (3) (9)

Parachute coconut oil 250ml 75 100ml 33 35 32 35 35 35 35 35 35 35 35 32 32 30 (7) (14) (14) (14)

Dabur Vatika hair oil 75ml 33 100ml 44 44 44 44 44 44 44 44 44 44 44 44 44 44 — — — —

Perfmued Hair Oils

Parachute Advansed hot oil 190ml 110 100ml 47 47 47 47 55 55 55 55 58 58 58 58 50 58 16 — 5 22

Parachute Advansed 80ml 45 100ml 60 60 60 60 60 60 60 60 60 60 60 60 60 60 — — — —

Parachute Jasmine 200ml 75 100ml 35 38 38 38 38 38 38 38 38 38 38 38 38 38 — — — —

Hair & Care 100ml 50 100ml 45 50 50 50 50 50 50 50 50 50 50 50 50 50 — — — —

Shanti Badam Amla 200ml 40 100ml 28 28 28 28 28 28 28 28 28 28 23 23 23 23 — — (18) (18)

Dabur Amla hair oil 100ml 42 100ml 42 42 42 42 42 42 42 42 42 42 42 42 42 42 — — — —

Dabur Hair Oil Almond Damage Free100ml 60 100ml 58 58 58 58 58 58 60 60 60 60 60 60 60 60 — — — 3

Dabur Vatika Enriched Almond hair oil 100ml 60 100ml 58 58 58 58 58 58 60 60 60 60 60 60 60 60 — — — 3

Bajaj Almond hair oil 100ml 60 100ml 58 58 58 58 60 60 60 60 60 60 60 60 60 60 — — — 3

Navratna Cooling oil 100ml 65 100ml 62 62 62 62 65 65 65 65 65 65 65 65 65 65 — — — 5






MRP (Rs)


Edible Oils

Saffola Kardi Oil - 1L 185 100ml 19 19 19 19 19 19 19 19 19 19 19 19 19 19 — — — —

Saffola Gold - 1L 150 100ml 15 15 15 15 15 15 13 15 15 15 15 15 15 15 — — — —

Saffola Active - 1L 130 100ml 13 13 13 13 13 13 13 13 13 13 13 13 13 13 — — — —

Sundrop Heart - 1L 200 100ml 15 19 19 19 19 19 20 20 20 20 20 20 20 20 — — 3 8

Sundrop Nutrilite - 1L 135 100ml 14 14 14 14 14 14 14 14 14 14 14 14 14 14 (4) (4) (4) —

Sundrop Superlite Advanced -1L 190 100ml 14 14 15 15 15 15 15 15 15 15 16 16 16 16 — — 6 12

Tea/ Coffee

Tea

Red Label Ctc 1kg 380 100g 34 35 35 35 35 35 35 35 35 35 35 38 38 38 — 9 9 9

Red Label Ctc Pp 500gm 190 100g 40 40 40 40 36 38 38 38 38 38 38 35 38 38 — (1) (1) (4)

Red Label Natural Care Box 500gm 233 100g 46 43 43 43 47 47 47 47 47 47 47 47 47 47 — — — 9

Taaza Ctc 1kg 285 100g 29 29 29 29 29 29 29 29 29 29 29 29 29 29 — — — —

Tajmahal Ctc Box 250gm 123 100g 49 49 46 46 49 49 49 49 49 49 49 49 49 49 — 1 1 1

Agni Ctc Leaves 1kg 232 100g 23 23 23 23 23 23 23 23 23 23 23 23 23 23 — — — —

Tata Ctc Gold 1kg 420 100g 412 412 412 412 412 420 420 420 420 420 420 420 420 420 — — — 2

Coffee

Bru Gold Jar 100gm 230 100g 220 220 220 220 220 220 220 230 230 230 230 230 230 230 — — — 5

Bru Instant Jar 100gm 174 100g 174 174 174 174 174 174 174 174 174 174 174 174 174 174 — — — —

Nescafe Classic Box 200gm 425 100g 208 208 208 208 208 208 208 208 208 208 208 208 213 213 — 2 2 2

Nescafe Classic 50gm 115 100g 220 220 220 220 220 220 230 230 230 230 230 230 230 230 — — — 5

Sunrise Premium Jar 50gm 100 100g 200 200 200 200 200 200 200 200 200 200 200 200 200 200 — — — —

Dairy

Milk/Condensed Milk/ Milk Powder

Nestle Milk Slim 1L 80 100ml 8 8 8 8 8 8 8 8 8 8 8 8 8 8 — — — —

Nestle Milk Toned A+ 1L 65 100ml 8 8 8 8 8 8 8 6 6 6 6 6 6 7 8 8 8 (13)

Britannia Milk 1L 75 100ml 8 8 8 8 8 8 8 8 8 8 8 8 8 8 — — — —

Britannia Milk Slimz 1L 69 100ml 7 7 7 7 7 7 7 7 7 7 7 7 7 7 — — — —

Amul Taaza 1L 58 100ml 6 6 6 6 6 6 6 6 6 6 6 6 6 6 — — 4 4

Amul Gold 1L 62 100ml 6 6 6 6 6 6 6 6 6 6 6 6 6 6 — — 3 3

Amul Lite 1L 58 100ml 6 6 6 6 6 6 6 6 6 6 6 6 6 6 — — — —

Everyday Milkpow Dairy Whitner Pouch 400gm 174 100g 44 44 44 44 44 44 44 44 44 44 44 44 44 44 — — — —

Butter/Cheese

Britannia Cheese Spread Classic 180gm 81 100g 45 45 45 45 45 45 45 45 45 45 45 45 45 45 — — — —

Britannia Processed Cream Cheese 180gm 199 100g 111 111 111 111 111 111 111 111 111 111 111 111 111 111 — — — —

Amul Butter 500gm 195 100g 36 36 36 36 36 36 36 36 37 37 37 39 39 39 — 4 7 7

Health Drinks/ Juices/ Health Supplements/ OTCs

Health Drinks

Horlicks Chocolate Jar 500gm 230 100g 40 42 42 42 42 42 42 42 43 43 43 46 46 46 — 7 8 8

Horlicks Junior Jar 500gm 265 100g 50 50 50 50 50 50 50 50 53 53 53 53 53 53 — — 6 6

Horlicks Standard Jar 500gm 229 100g 40 42 42 42 42 42 42 42 43 43 43 43 43 46 7 7 8 8

Horlicks Lite Malt Jar 500gm 280 100g 48 50 50 50 50 50 50 50 52 52 52 52 52 56 8 8 12 12

Horlicks Womens Chocolate Jar 330gm 295 100g 77 79 79 79 79 79 79 79 85 85 85 85 85 89 6 6 13 13

Boost Jar 500gm 225 100g 41 41 41 41 41 41 41 41 43 43 43 43 43 45 5 5 10 10

Actilife Malt Jar 250gm 160 100g 64 64 64 64 64 64 64 64 64 64 64 64 64 64 — — — —

Juices

Real Juice Active Orange 1L 105 100ml 11 11 11 11 11 11 11 11 11 11 11 11 11 11 — — — —

Real Juice Orange 1L 99 100ml 10 10 10 10 10 10 10 10 10 10 10 10 10 10 — — — —

Real Juice Apple 1L 99 100ml 9 10 10 10 10 10 10 10 10 10 10 10 10 10 — — — —

Health Supplements/OTCs

Dabur Chyawanprash 1kg 295 100g 28 28 28 28 28 28 28 28 28 28 30 30 30 30 — — 5 5

Dabur Digestive Hajmola Regular 120 P 28 25 25 25 25 25 25 25 25 25 25 25 25 28 28 — 12 12 12

Dabur Glucose-D Jar 1kg 160 100g 15 15 15 15 15 15 16 16 16 16 16 16 16 16 — — — 5

Dabur Honey 500gm 199 100g 38 39 39 39 39 39 39 39 40 40 40 40 40 40 — — 2 2






MRP (Rs)


Biscuits/Atta

CreamBiscuits

Sunfeast Dark Fantasy Chocolate 100gm 25 100g 25 25 25 25 25 25 25 25 25 25 25 25 25 25 — — — —

Britannia Cream J im Jam 150gm 25 100g 17 17 17 17 17 17 17 17 17 17 17 17 17 17 — — — —

Britannia Cream Treat Bourbon 150gm 26 100g 17 17 17 17 17 17 17 17 17 17 17 17 17 17 — — — —

Sunfeast Cream Bourbon 150gm 25 100g 17 17 17 17 17 17 17 17 17 17 17 17 17 17 — — — —

Parle Cream Hide & Seek Bourbon 150gm 20 100g 16 16 16 16 16 13 13 13 13 13 13 13 13 13 — — — (17)

Cookies/Healthy biscuits

Sunfeast Cookie Butter 100gm 10 100g 10 10 10 10 10 10 10 10 10 10 10 10 10 10 — — — —

Britannia Good Day Butter 150gm 20 100g 13 13 13 13 13 13 13 13 13 13 13 13 13 13 — — — —

Britannia Cookies Good Day Cashew 100gm 15 100g 15 15 15 15 15 15 15 15 15 15 15 15 15 15 — — — —

Britannia NutriChoice Digestive 75gm 12 100g 20 20 16 16 16 16 16 16 16 16 16 16 16 16 — — — (20)

Britannia Cookies NutriChoice Oats 150gm 55 100g 37 37 37 37 37 37 37 37 37 37 37 37 37 37 — — — —

Marie/Glucose/Salted/Nice Biscuits

Sunfeast Marie Light 100gm 10 100g 9 9 9 9 9 9 9 9 9 9 9 9 9 9 — — — —

Britannia V ita Marie Gold 150gm 20 100g 13 13 13 13 13 13 13 13 13 13 13 13 13 13 — — — —

Parle Digestive Marie 100gm 10 100g 10 10 10 10 10 10 10 10 10 10 10 10 10 10 — — — —

Sunfeast Bisccuits Glucose 80gm 5 100g 6 6 6 6 6 6 6 6 6 6 6 6 6 6 — — — —

Britannia Tiger 133gm 10 100g 8 8 8 8 8 8 8 8 8 8 8 8 8 8 — — — —

Parle Glucose 144gm 10 100g 7 7 7 7 7 7 7 7 7 7 7 7 7 7 — — — —

Horlicks 100gm 10 100g 11 11 11 11 11 11 11 11 11 11 11 11 11 11 — — — —

Sunfeast Snacky Salted 80gm 10 100g 16 16 16 16 16 16 16 16 16 16 16 16 16 16 — — — —

Parle Salted Krackjack 80gm 10 100g 13 13 13 13 13 13 13 13 13 13 13 13 13 13 — — — —

Parle Salted Monaco Classic 80gm 10 100g 13 13 13 13 13 13 13 13 13 13 13 13 13 13 — — — —

Sunfeast Plain Nice 150gm 20 100g 13 13 13 13 13 13 13 13 13 13 13 13 13 13 — — — —

Britannia Nice Time 150gm 22 100g 15 15 15 15 15 15 15 15 15 15 15 15 15 15 — — — —

Atta

Aashirvaad Atta Multigrain 5kg 255 100g 5 5 5 5 5 5 5 5 5 5 5 5 5 5 — — — 6

Aashirvaad Atta Whole Wheat 5kg 220 100g 4 4 4 4 4 4 4 4 4 4 4 4 4 4 — — — 2

Soups/Sauces/Spreads

Ketchup/Sauces

Maggi Ketchup Tomato 1kg 140 100g 13 13 13 13 13 14 14 13 13 13 13 14 14 14 — 12 12 5

Kissan Ketchup Fresh Tomato Bt 1kg 140 100g 13 13 13 13 13 13 13 13 14 14 14 14 14 14 — 4 5 8

Spreads/Jams

Kissan Cheesy Garlic Creamy Spread 100gm 34 100g 34 34 34 34 34 34 34 34 34 34 34 34 34 34 — — — —

Kissan Jam Mixed Fruit 200gm 50 100g 24 24 25 25 25 25 25 25 25 25 25 25 25 25 — — — 4

Soups

Maggi Rich Tomato 54gm 45 100g 83 83 83 83 83 83 83 83 83 83 83 83 83 83 — — — —

Knorr Classic Thick Tomato 55gm 50 100g 82 82 82 82 82 82 82 82 91 91 91 91 91 91 — — 11 11

Maggi Sweet Corn Vegetable 36gm 45 100g 125 125 125 125 125 125 125 125 125 125 125 125 125 125 — — — —

Knorr Sweet Corn Vegetable 47gm 50 100g 96 96 96 96 96 96 96 96 106 106 106 106 106 106 — — 11 11

Chocolate bars

Nestle Kit Kat 108gm 75 100g 83 83 83 83 83 83 83 83 83 83 83 83 83 83 — — — —

Nestle Munch Home Pk 69gm 38 100g 51 51 55 55 55 55 55 55 55 55 55 55 55 55 — — — 9

Nestle Milk 18gm 10 100g 56 56 56 56 56 56 56 56 56 56 56 56 56 56 — — — —

Nestle Bar One 26gm 10 100g 45 45 45 45 45 45 45 45 45 36 36 36 36 36 — — (20) (20)

Nestle Alpino Bar 22gm 30 100g 136 136 136 136 136 136 136 136 136 136 136 136 136 136 — — — —

Noodles

Maggi Masala 70gm 12 100g 17 17 17 17 17 17 17 17 17 17 17 17 17 17 — — — —

Maggi Masala 140gm 23 100g 14 14 16 16 16 16 16 16 16 16 16 16 16 16 — — — 15

Maggi Masala 280gm 45 100g 14 14 16 16 16 16 16 16 16 16 16 16 16 16 — — — 13

Maggi Masala 560gm 86 100g 14 14 15 15 15 15 15 15 15 15 15 15 15 15 — — — 8

Maggi Chicken 304gm 59 100g 19 19 19 19 19 19 19 19 19 19 19 19 19 19 — — — —

Maggi Veg Atta 320gm 95 100g 30 30 30 30 30 30 30 30 30 30 30 30 30 30 — — — —

Sunfeast Yippee Magic Masala 75gm 10 100g 13 13 13 13 13 13 13 13 13 13 13 13 13 13 — — — —

Sunfeast Yippe Chinese Masala Pp 75gm 15 100g 20 20 20 20 20 20 20 20 20 20 20 20 20 20 — — — —

Knorr Soupy Mast Masala Pp 70gm 15 100g 17 17 17 21 21 21 21 21 21 21 21 21 21 21 — — — 25

Horlicks Foodle Multigrain Ala Masala 320gm 78 100g 24 24 24 24 24 24 24 24 24 24 24 24 24 24 — — — —

Baby Food

Cerelac Babycereal Rice S1 300gm 160 100g 53 53 53 53 53 53 53 53 53 53 53 53 53 53 1 1 1 1

Cerelac Babycereal Wheat S1 300gm 160 100g 52 52 52 52 52 52 52 52 52 52 52 52 52 53 3 3 3 3

Cerelac Babycereal Multigrain Dal Veg 300gm 209 100g 68 68 68 68 68 68 68 68 68 68 68 68 68 70 2 2 2 2

Lactogen Babycereal Nan 1 Frml 400gm 515 100g 123 123 123 123 123 123 123 123 123 123 129 129 129 129 — — 5 5

Nestum Babycereal Rice Dal S2 300gm 128 100g 43 43 43 43 43 43 43 43 43 43 43 43 43 43 — — — —




Exhibit 3: Ongoing promotional activity across FMCG categories for January, 2016


SKU Original Offer Eff change (%) Promotional offer

Soaps

Lux Velvet Touch soap 54gm 10 10 (10.0) Free 11% extra #

Lux Velvet Touch soap (3 x 100gm pack) 300gm 72 72 Free 54gm Lux soap #

Lifebuoy Total 10 soap 59gm 10 10 (13.2) Free 15% extra #

Lifebuoy Total 10 soap (3 x 100gm pack) 300gm 58 58 Free Lifebuoy handwash pump 80ml worth Rs25 #

Lifebuoy Clini-care 10 (3 x 125gm pack) 375gm 145 120 (17.2) Price off of Rs25 #

Dove soap (3 x 100gm pack) 300gm 174 174 Free Dove 75gm soap #

Pears soap (3 x 125gm pack) 375gm 168 168 Free Pears 75gm soap worth Rs36 free #

Cinthol Original (4 x 100gm pack) 400gm 132 127 (3.8) Price off of Rs5 #

Fiama Di Wills gel bar (3 x 125gm pack) 375gm 180 180 Free 75gm soap #

Detergents/Dishwash

Surf Excel Matic Top Load detergent powder 2Kg 415 385 (7.2) Price off of 30

Surf Excel Matic Front Load detergent powder 1Kg 465 435 (6.5) Price off of 30

Surf Excel Matic Front Load detergent powder 2Kg 235 205 (12.8) Price off of 30

Surf Excel Quickwash detergent powder 1Kg 192 192 Free Surf detergent bar 250gm worth Rs27

Surf Excel Quickwash detergent powder 2Kg 383 383 Free Surf detergent liquidd 200ml worth Rs60

Ariel Matic detergent powder 1Kg 235 205 (12.8) Price off of 30

Rin detergent bar 150gm 10 10 (6.3) Free 10gm extra #

Rin detergent bar 4x250gm 64 62 (3.1) Price off of Rs2 (offer rev ised; price hiked from Rs58 earlier) #

Surf Excel detergent bar 90gm 10 10 (10.0) Free 10gm extra #

Surf Excel detergent bar 250gm 29 27 (6.9) Price off of Rs2 #

Rin detergent powder 1kg 150 150 Free 3x20ml Comfort sachet

Rin detergent powder 4kg 352 352 Free - Container worth Rs150

Surf Excel Easywash detergent powder 500gm 68 55 (19.1) Price off of Rs13 #

Surf Excel Easywash detergent powder 700gm 96 77 (19.8) Price off of Rs19 #

Surf Excel Easywash detergent powder 1.5Kg 207 187 (9.7) Price off of Rs20 #

Surf Excel Easywash detergent powder 4Kg 544 479 (11.9) Price off of Rs65 #

Surf Excel Quickwash detergent powder 500gm 98 98 Free 3x20ml Comfort sachet (same offer; price hiked from Rs94) #

Tide Plus detergent powder 1Kg 96 90 (6.3) Price off of Rs6 #

Tide Plus detergent powder 500gm 48 46 (4.2) Price off of Rs2 #

V im dishwash bar 75gm 5 5 (6.3) Free 5gm extra #

V im dishwash bar 130gm 10 10 (7.1) Free 10gm extra #

Shampoos (price-offs have moved to revised MRP since last couple of months)

Clear 375ml 300 245 (18.3)

Clear 170ml 163 133 (18.4)

Clinic Plus 80ml 57 45 (21.1)

Clinic Plus 175ml 122 95 (22.1)

Clinic Plus 340ml 212 180 (15.1)

Dove 80ml 75 56 (25.3)

Dove 180ml 165 124 (24.8)

Dove 340ml 270 230 (14.8)

Sunsilk 80ml 60 47 (21.7)

Sunsilk 180ml 132 105 (20.5)

Sunsilk 340ml 225 190 (15.6)

Tresemme 85ml 75 50 (33.3)

Tresemme 200ml 160 123 (23.1)

Loreal 75ml 75 55 (26.7)

Loreal 175ml 155 120 (22.6)

Loreal 360ml 275 220 (20.0)

Head & Shoulders 80ml 79 60 (24.1)



Head & Shoulders cool blast 180ml 180 150 (16.7)

Head & Shoulders cool blast 340ml 329 275 (16.4)

Pantene 80ml 75 50 (33.3)

Pantene 180ml 155 110 (29.0)

Pantene 340ml 264 200 (24.2)

Notes:

(1) # offer was available in December, as well.

MRP (Rs)



Exhibit 3: Ongoing promotional activity across FMCG categories for January, 2016 (continued)


SKU Original Offer Eff change (%) Promotional offer

Hair oils

Livon Hair Serum 20ml 60 49 (18.3) Price off of Rs11

Parachute coconut oil 100ml 33 31 (6.1) Price off of Rs2




Parachute Advansed Jasmine 90ml 39 35 (10.3) Price off of Rs4

Himani Navratna cooling oil 50ml 35 35 Free 2 sachets of Navratna cool talc

Dabur Amla 450ml 190 190 Free Dabur Almond shampoo 100ml worth Rs75

Dabur Amla 100ml 42 42 Free - Dabur Red toothpaste 25gm worth Rs10 #

Dabur Almond 200ml 115 115 Free Dabur Gulabari rose water 120ml worth Rs40 #

Dabur Anmol coconut oil 500ml 172 138 (19.8) Price off of Rs34 #

Dabur Anmol coconut oil 175ml 62 57 (8.1) Price off of Rs5 #

Dabur Vatika Enriched coconut hair oil 300ml 167 167 Free - Meswak toothpaste worth Rs47 #

Dabur Vatika Enriched coconut hair oil 150ml 84 84 (16.7) Free - 20% extra #

Nihar Shanti Amla 175ml 49 40 Price off of Rs9 #

Bajaj Almond Drops 500ml 250 250 Free NOMARKS neem face wash worth Rs55 #

Emami 7 oils in one 100ml 60 60 Free 200ml Boroplus Lotion worth Rs10 #

Other personal care items

Dabur Meswak 100gm 49 49 Free Binaca toothbrush worth Rs15

Dabur Meswak 200gm 90 90 Free 2 sachets of 7.5gm Dabur Almond shampoo worth Rs3 each

Colgate Sensitive toothpaste 80gm 100 100 Buy 1 get 1 free #

Colgate Sensitive Pro-Relief toothpaste 70gm 110 110 Free - toothbrush worth Rs45 #

Pepsodent G Gum care toothpaste 140gm 96 86 (10.4) Price off - Rs10 #

Fair & Lovely face wash 50gm 55 55 (23.1) Free - 30% extra #

Ponds daily facewash 100gm 140 140 (23.1) Free - 30% extra #

Biscuits

Britannia Bourbon 20gm 5 5 (16.7) Free - 50% extra #

Britannia Marie Gold 89gm 10 10 (11.0) Free - 12% extra #

Britannia Milk Bikis 50gm 5 5 (16.7) Free - 20% extra #

Britannia Milk Shakti 85gm 10 10 (26.3) Free - 35% extra #

Britannia Nutrichoice Heavens 100gm 50 40 (20.0) Price off - Rs10 #

Britannia Nutrichoice Digestives 100gm 20 20 (16.7) Free - 20% extra #

Parle-G 70gm 5 5 (12.5) Free - 14% extra #

Parle-G 140gm 10 10 (12.5) Free - 20gm extra #

Parle-G 250gm 20 18 (10.0) Price off - Rs2 #

Parle-G Gold 100gm 10 10 (20.0) Free - 25% extra #

Parle-G Gold 200gm 20 20 (20.0) Free - 25% extra #

Parle Krackjack 38gm 5 5 (20.0) Free - 25% extra #

Parle Krackjack 200gm 25 25 (20.0) Free - 50gm extra #

Parle Monaco 75gm 10 10 (18.8) Free - 23% extra #

Parle Monaco 75gm 20 20 (25.0) Free - 50gm extra #

Parle Magix 100gm 10 10 (20.0) Free - 25% extra #

Dairy/Chocolates

Danone Dahi 400gm 55 50 (9.1) Price off - Rs5

Nestle Munch 10gm 5 5 (22.9) Free - 30% extra

Nestle Kit Kat 12.8gm 10 10 Free Paytm cashback worth Rs10

Cadbury Dairy Milk 140gm 150 125 (16.7) Price off of Rs25

Cadbury Dairy Milk 13gm 10 10 (13.3) Free - 15% extra #

Nestle Munch multi pack 182gm 90 90 (9.9) Free - 2 units (20 units now versus 18 units) #

Kit Kat multi pack 115gm 90 90 (10.2) Free - 1 unit (10 units now versus 9 units) #

Kit Kat multi pack 64gm 50 50 (16.7) Free - 1 unit (6 units now versus 5 units) #

Other foods

Maggi Sauce 1L 140 128 (8.6) Price off of Rs 12

Kissan Ketchup 500gm 94 94 Free Ketchup pack worth Rs15

Maggi Ketchup 1L 140 140 Free - Maggi Ketchup worth Rs51 #

Dabur Honey 500gm 199 199 Free - Horlicks Oats 100gm worth Rs35 #

Act II Instant popcorn (select variants) 60gm 22 22 Free - Sundrop peanut butter sachet worth Rs15 #

Beverages

Nescafe classic coffee 50gm 130 130 Free Britannia NutriChoice Digestives biscuit worth Rs30

Bru coffee 200gm 299 299 Free 2x25gm Bru coffee sachets worth Rs40 each

Bru gold coffee 100gm 230 230 Free Bru gold coffee pack worth Rs107

Taj Mahal tea 500gm 265 245 Price off of Rs20

Red Label tea 1Kg 420 380 (9.5) Price off of Rs40 #

Red Label tea 250gm 100 95 (5.0) Price off of Rs5 #

Taaza tea 500gm 165 165 Free - container worth Rs60 #

Taj Mahal tea 250gm 128 123 (3.9) Price off of Rs5 #

Cadbury Bournvita 750gm 300 284 (5.3) Price off of Rs16 #

Notes:

(1) # offer was available in December, as well.

MRP (Rs)



Exhibit 4: Monthly raw material trends for January, 2016

Source: Bloomberg, Kotak Institutional Equities

Inflationary = +3%

Deflationary = -3%

No Commodity Unit Current MoM 3M 6M YoY MoM 3M 6M YoY Companies impacted

Agri Commodities

1 Tea - India Avg. Rs/Kg 127 (5) 6 (0) 10 (5) 6 (0) 10 HUL, TGBL

2 Tea - World Avg. USD/MT 2,540 (7) (9) (9) 0 (6) (6) (10) 9 HUL, TGBL

3 Tea - Mombassa/Kenya USD/Kg 3 (7) (18) (15) 19 (6) (16) (16) 29 HUL, TGBL

4 Coffee Arabica - Intl. US cents/Pound 146 (2) (5) (2) (23) (1) (2) 1 (17) HUL, Nestle, TGBL

5 Coffee Robusta - Intl. US cents/Pound 82 (5) (8) (7) (20) (4) (4) (6) (13) HUL, Nestle, TGBL

6 Sugar - domestic Rs/Quintal 3,209 6 14 25 11 6 14 25 11 HUL, Nestle, GSKCHL, ITC, Dabur, Britannia

7 Wheat Rs/Quintal 1,700 1 0 9 2 1 0 9 2 ITC, Nestle, GSKCHL, Britannia

8 Barley Rs/Quintal 1,494 (1) 6 21 (5) (1) 6 21 (5) GSKCHL

9 Maize (corn) USD/MT 165 0 (4) (9) (6) 2 (0) (3) 2 Colgate, HUL, Dabur (Sorbitol)

10 Liquid Milk - domestic Rs/Ltr 32 7 7 — — 7 7 — — Nestle, GSKCHL, Jubilant Foodworks, Britannia

11 Milk Powder - domestic Rs/Kg 214 (2) (5) 4 (6) (2) (5) 4 (6) Nestle, GSKCHL, Britannia

12 Cocoa Bean USD/MT 3,196 (11) (7) 1 1 (10) (4) (5) 10 Nestle

Oil Commodities

13 Crude Oil - Brent USD/Barrel 31 (18) (36) (32) (36) (17) (34) (42) (31) HUL, GCPL, J yothy Labs, Asian Paints, Pidilite

14 Palm oil MYR/Ton 2,266 5 3 (1) (1) 5 5 (4) (11) HUL, GCPL, J yothy Labs

15 PFAD USD/MT 481 16 26 (21) (18) 17 30 (4) (11) HUL, GCPL, J yothy Labs

16 Light liquid paraffin (LLP) Rs/Ltr 30 (3) (12) (25) (28) (3) (12) (25) (28) Marico, Dabur, Bajaj Corp

17 Copra Rs/Quintal 5,969 (8) (17) (8) (35) (8) (17) (8) (35) Marico, Dabur

18 Coconut oil Rs/Quintal 8,735 (9) (17) (9) (37) (9) (17) (9) (37) Marico, Dabur

19 Rice Bran oil Rs/10Kg 504 (2) (7) (0) 1 (2) (7) (0) 1 Marico

20 Kardi oil/ Safflower oil Rs/MT 87,500 — — — — — — — — Marico

21 Sunflower oil Rs/MT 66,553 (2) (2) 10 8 (2) (2) 10 8 Marico

22 Groundnut oil Rs/MT 97,105 2 2 (4) (3) 2 2 (4) (3) Marico, Dabur

23 Linseed oil Rs/MT 88,474 2 5 11 14 2 5 11 14 Marico, Dabur, Bajaj Corp, Asian Paints

24 Castor oil Rs/MT 74,028 (8) (13) (2) (16) (8) (13) (2) (16) Marico, Dabur, Bajaj Corp, Asian Paints

25 Mentha oil Rs/Kg 1,043 (2) (1) (6) 16 (2) (1) (6) 16 Emami, Colgate, HUL, Dabur

Chemicals/Paints/Other Commodities

26 Caustic soda Rs/ 50Kg 1,885 19 15 (6) 23 19 15 (6) 23 HUL, GCPL, J yothy Labs

27 Soda ash Rs/ 50Kg 1,236 2 (0) (5) (0) 2 (0) (5) (0) HUL, GCPL, J yothy Labs

28 LAB Rs/Kg 88 1 1 (11) (10) 1 1 (11) (10) HUL, J yothy Labs

29 HDPE - domestic Rs/Kg 95 (2) (8) (15) (15) (2) (8) (15) (15) All companies

30 PAN Rs/Kg 51 (2) (16) (24) (19) (2) (16) (24) (19) Asian Paints

31 Tio2 Anatese Rs/Kg 125 — — — (17) — — — (17) Asian Paints

32 Tio2 Rutile Rs/Kg 150 — (3) (12) (21) — (3) (12) (21) Asian Paints

33 Tio2 Dupont Rs/Kg 209 (1) (4) (1) (4) (1) (4) (1) (4) Asian Paints

34 Turpentine oil Rs/Ltr 84 (1) (1) — — (1) (1) — — Asian Paints

35 Formaldehyde Rs/Kg 24 (4) (4) (4) (8) (4) (4) (4) (8) Asian Paints

36 Acry lic acid Rs/Kg 90 — (6) (13) (17) — (6) (13) (17) Asian Paints

37 Vinyl Acetate - China US$/MT 878 (2) (0) (12) (12) (0) 3 (8) (5) Pidilite, Asian Paints

38 Styrene - domestic Rs/Kg 68 (3) (8) (25) 1 (3) (8) (25) 1 Asian Paints

39 Gold Rs/10gm 25,950 3 (2) (1) (5) 3 (2) (1) (5) Titan, Jewellery companies

40 Diamond price index USD/Carrat 123 (1) (2) (6) (9) 0 2 (2) (1) Titan, Jewellery companies

% chg - local currency % chg - currency Adj.



Exhibit 5: KIE Consumer universe valuation summary

Source: Bloomberg, Company, Kotak Institutional Equities estimates

TP 17-Feb-16 EPS Sales

Company Rating (Rs) Price (Rs) (Rs bn) (US$ m) 2016E 2017E 2018E 2016E 2017E 2018E 2016E 2017E 2018E

Consumer Products

Asian Paints REDUCE 800 856 (7) 821 12,164 19.0 22.4 26.5 28.0 17.8 18.5 45.1 38.3 32.3 18.2 14.2

Bajaj Corp BUY 495 389 27 57 849 17.1 19.4 21.8 15.0 13.5 12.2 22.7 20.0 17.8 12.9 16.1

Britannia Industries BUY 3,300 2,652 24 318 4,713 71.4 87.5 109.1 57.9 22.6 24.6 37.1 30.3 24.3 23.6 16.4

Coffee day Enterprises BUY 270 228 18 47 696 (0.9) 3.4 6.9 NM NM 103.3 NM 67.1 33.0 NM 12.7

Colgate-Palmolive (India) REDUCE 900 837 8 228 3,371 21.9 25.2 28.7 6.7 14.9 13.7 38.2 33.2 29.2 14.3 13.6

Dabur India ADD 280 241 16 424 6,283 7.1 8.0 9.2 17.2 12.9 14.3 34.0 30.1 26.3 13.6 12.7

GlaxoSmithKline Consumer ADD 6,500 5,543 17 233 3,453 178.1 192.4 218.9 28.3 8.1 13.7 31.1 28.8 25.3 10.9 14.7

Godrej Consumer Products ADD 1,285 1,178 9 401 5,942 33.4 39.3 46.4 28.9 17.7 18.1 35.3 30.0 25.4 17.9 12.9

Hindustan Unilever REDUCE 825 813 2 1,758 26,044 18.7 21.5 24.2 7.3 14.9 12.8 43.5 37.9 33.6 13.8 9.9

ITC BUY 370 300 23 2,414 35,767 12.3 13.8 15.7 2.7 12.6 14.1 24.5 21.7 19.1 13.3 10.7

Jubilant Foodworks REDUCE 1,000 1,049 (5) 69 1,023 15.8 24.1 33.6 (6.1) 51.8 39.6 66.2 43.6 31.2 45.5 21.9

J yothy Laboratories NR — 271 — 49 727 8.2 10.0 11.3 42.7 21.6 12.9 33.0 27.2 24.1 17.2 13.1

Manpasand Beverages ADD 525 438 20 22 324 11.2 17.6 22.9 40.6 57.2 29.7 39.0 24.8 19.1 42.8 31.3

Marico REDUCE 220 227 (3) 293 4,344 5.6 6.9 7.9 26.0 22.7 14.5 40.6 33.1 28.9 18.5 13.9

Nestle India REDUCE 4,800 5,080 (6) 490 7,256 94.4 119.9 143.2 (22.7) 26.9 19.5 53.8 42.4 35.5 23.1 14.5

Page Industries SELL 10,000 10,583 (6) 118 1,749 214.2 269.3 325.5 21.9 25.7 20.9 49.4 39.3 32.5 23.3 20.9

PC Jeweller NR — 385 — 69 1,022 25.2 30.6 36.8 19.1 21.7 20.2 15.3 12.6 10.5 21.0 17.6

Pidilite Industries REDUCE 570 601 (5) 308 4,561 14.3 17.0 19.6 41.8 18.5 15.5 42.0 35.4 30.6 17.0 15.1

Speciality Restaurants REDUCE 105 85 23 4 59 1.2 2.3 3.5 (39.0) 83.8 55.3 69.6 37.9 24.4 69.0 14.9

Tata Global Beverages BUY 135 104 30 66 972 4.7 5.8 6.8 (13.8) 24.0 16.4 22.2 17.9 15.4 20.1 7.5

Titan Co. REDUCE 320 327 (2) 290 4,299 8.7 10.8 12.2 (5.5) 24.1 13.6 37.6 30.3 26.7 18.7 14.7

United Breweries SELL 750 809 (7) 214 3,169 12.0 15.0 19.0 22.7 25.0 26.4 67.2 53.8 42.6 25.7 12.6

United Spirits ADD 2,900 2,309 26 336 4,971 22.8 36.7 56.2 NM 60.9 53.4 101.4 63.0 41.1 57.1 9.7

KIE universe 9,029 133,761 11.9 17.0 16.4 35.1 30.0 25.8 16.7 12.7

KIE universe (ex-ITC) 6,615 97,993 18.6 19.6 17.5 41.8 34.9 29.7 18.6 13.1

Bajaj Auto 1-mo 3-mo 6-mo 1-yr 2016E 2017E 2018E 2016E 2017E 2018E 2016E 2017E 2018E 2016E 2017E

Asian Paints (3) 6 (5) 3 28.6 23.9 20.2 5.2 4.5 3.9 1.7 2.5 2.8 0.9 1.1

Bajaj Corp (4) (8) (17) (12) 19.2 15.9 13.4 6.1 5.1 4.4 3.8 5.0 5.1 3.0 3.2

Britannia Industries (7) (8) (20) 30 24.4 20.0 16.0 3.5 3.0 2.6 1.7 2.2 3.0 0.9 1.3

Coffee day (10) (14) — — 14.4 12.6 10.9 2.4 2.1 1.9 1.4 2.5 2.8 — —

Colgate-Palmolive (India) (9) (11) (16) (13) 23.6 20.4 17.5 5.4 4.8 4.2 2.4 2.2 2.8 1.8 2.1

Dabur India (4) (9) (20) (10) 28.3 24.7 21.2 5.0 4.4 3.8 2.6 2.7 3.3 1.1 1.3

GlaxoSmithKline Consumer (7) (6) (11) (4) 22.3 19.2 16.5 4.6 3.9 3.3 2.4 2.9 3.1 1.2 1.4

Godrej Consumer Products (5) (3) (9) 1 25.2 21.5 17.8 4.6 4.0 3.5 2.1 2.4 4.0 0.6 0.7

Hindustan Unilever 1 2 (7) (10) 30.1 26.1 23.0 5.3 4.9 4.4 2.1 2.5 2.9 1.8 2.1

ITC (4) (14) (5) (23) 16.4 14.4 12.5 6.2 5.6 5.0 3.1 3.6 4.2 2.3 2.8

Jubilant Foodworks (16) (26) (41) (36) 24.4 17.7 13.4 2.8 2.3 1.8 0.2 0.2 0.8 0.3 0.5

J yothy Laboratories (8) (10) (15) (10) 21.9 18.8 15.6 3.1 2.8 2.4 2.8 4.5 4.2 1.5 1.5

Manpasand Beverages (1) 15 5 — 18.1 13.2 10.2 3.7 2.7 2.1 (7.6) 2.3 (0.1) 0.3 0.6

Marico 1 13 7 29 27.5 22.3 19.3 4.7 4.1 3.5 2.4 2.5 2.8 0.9 1.0

Page Industries (16) (15) (27) (10) 29.8 23.5 20.1 5.8 5.0 4.3 2.2 3.3 3.7 1.0 1.3

Nestle India (9) (17) (17) (29) 29.8 23.5 20.1 5.8 5.0 4.3 2.2 3.3 3.7 1.0 1.3

PC Jeweller 4 (3) (4) 64 8.7 6.7 5.5 0.9 0.7 0.6 7.5 8.3 6.7 1.0 1.2

Pidilite Industries 8 12 3 4 26.1 22.3 19.1 5.6 4.8 4.1 2.0 2.5 2.7 0.7 0.8

Speciality Restaurants (28) (32) (45) (53) 12.3 8.7 6.5 1.0 0.9 0.7 (1.4) (0.3) 0.8 1.2 1.2

Tata Global Beverages (19) (22) (21) (33) 10.5 9.0 7.9 0.9 0.8 0.7 3.7 4.0 4.4 2.2 2.2

Titan Co. (3) (9) (3) (22) 26.3 21.3 18.0 2.3 2.0 1.7 4.2 2.2 2.7 0.8 1.0

United Breweries (6) (19) (15) (16) 28.3 24.0 20.1 4.4 3.9 3.4 0.6 1.0 1.1 0.2 0.3

United Spirits (14) (35) (35) (31) 35.4 28.4 21.7 4.0 3.6 3.2 1.9 1.4 2.0 0.2 0.4

KIE FMCG universe (4) (8) (11) (12) 22.9 19.5 16.6 4.6 4.1 3.6 2.4 2.8 3.3 1.1 1.3

KIE universe (ex-ITC) (4) (6) (13) (8) 26.5 22.2 18.8 4.2 3.7 3.2 2.2 2.5 3.0 1.1 1.3

Sensex (4) (10) (16) (20)

Price performance (%)

Upside /

(downside)

(%)

EPS (Rs)

EV/EBITDA (X) Dividend yield (%)

CAGR - (2016-18E), %

Mkt cap. EPS Growth, % PER (X)

EV/Sales (X) FCF yield (%)



Exhibit 6: Consumer sector P/E rich at 29X One year forward P/ E based on consensus estimates (X)

Source: Bloomberg, Company, Kotak Institutional Equities

Exhibit 7: Consumer sector (ex-ITC) is trading at 37X One year forward P/E based on consensus estimates (X)


Exhibit 8: P/E multiples are fairly high for the earnings profile One year forward PE (based on consensus estimates)


Exhibit 9: P/E multiples are fairly high for the earnings profile One year forward PE (based on consensus estimates)


5

10

15

20

25

30

35

40

Jan-9

6

Jan-9

7

Jan-9

8

Jan-9

9

Jan-0

0

Jan-0

1

Jan-0

2

Jan-0

3

Jan-0

4

Jan-0

5

Jan-0

6

Jan-0

7

Jan-0

8

Jan-0

9

Jan-1

0

Jan-1

1

Jan-1

2

Jan-1

3

Jan-1

4

Jan-1

5

Jan-1

6

5

10

15

20

25

30

35

40

45

50

Jan-9

6

Jan-9

7

Jan-9

8

Jan-9

9

Jan-0

0

Jan-0

1

Jan-0

2

Jan-0

3

Jan-0

4

Jan-0

5

Jan-0

6

Jan-0

7

Jan-0

8

Jan-0

9

Jan-1

0

Jan-1

1

Jan-1

2

Jan-1

3

Jan-1

4

Jan-1

5

Jan-1

6

10

20

30

40

50

60

70

80

Jan-0

6

Jan-0

7

Jan-0

8

Jan-0

9

Jan-1

0

Jan-1

1

Jan-1

2

Jan-1

3

Jan-1

4

Jan-1

5

Jan-1

6

Nestle Dabur Asian Paints

ITC HUL GCPL

-

10

20

30

40

50

Jan-0

6

Jan-0

7

Jan-0

8

Jan-0

9

Jan-1

0

Jan-1

1

Jan-1

2

Jan-1

3

Jan-1

4

Jan-1

5

Jan-1

6

Marico TitanColgate GSK Consumer



Exhibit 10: Most FMCG stocks trading in line or at marginal premium to historical averages barring BRIT, Pidilite, APNT and Marico One year forward PE based on consensus estimates (X)


Exhibit 11: Relative valuation (to Sensex) One year forward Premium to Sensex based on consensus estimates (X)


HUL ITC Nestle Colgate GSKCHL APNT GCPL Marico Dabur Titan TGBL Britannia Pidilite Sector

Average P/E (X)

3-Yr 37.9 27.8 50.7 38.1 34.5 38.1 33.6 29.6 32.5 34.3 25.4 26.1 33.4 31.8

5-Yr 33.8 26.7 46.5 35.1 31.3 34.6 30.4 29.0 29.9 32.1 23.3 24.6 29.0 29.7

10-Yr 29.7 24.3 37.3 28.6 24.1 27.6 28.0 25.6 27.2 28.8 20.0 25.1 24.8 26.2

Current P/E 37.7 22.8 45.5 37.1 32.9 39.9 32.5 35.1 32.2 32.4 19.5 34.8 35.1 29.4

Current Prem/Disct to Avg (%)

Prem/Disc to 3-Yr Avg (1) (18) (10) (3) (5) 5 (3) 19 (1) (6) (23) 33 5 (7)

Prem/Disc to 5-Yr Avg 12 (15) (2) 6 5 15 7 21 8 1 (16) 42 21 (1)

Prem/Disc to 10-Yr Avg 27 (6) 22 30 36 45 16 37 19 12 (3) 38 41 12

5-year P/E variables (X)

Median 33.4 27.2 42.3 34.3 32.2 35.0 32.2 28.3 29.2 30.1 24.4 22.5 29.0 30.0

Average 33.8 26.7 46.5 35.1 31.3 34.6 30.4 29.0 29.9 32.1 23.3 24.6 29.0 29.7

STD 6.9 2.6 9.4 5.5 4.6 5.6 5.1 3.6 4.6 6.0 4.5 6.9 6.8 3.3

Max 47.5 32.0 72.5 45.5 43.1 46.2 37.6 37.3 39.4 47.3 29.8 42.4 43.2 36.8

+1 STD 40.7 29.3 55.9 40.7 35.9 40.1 35.5 32.6 34.4 38.1 27.8 31.5 35.8 33.0

Min 23.0 21.0 34.6 25.2 24.5 24.4 20.4 23.3 23.1 22.6 15.0 15.6 17.4 22.8

-1 STD 26.8 24.1 37.2 29.6 26.7 29.0 25.3 25.4 25.3 26.1 18.8 17.7 22.3 26.3

Difference versus current P/E (%)

Median 13 (16) 7 8 2 14 1 24 10 8 (20) 54 21 (2)

Average P/E 12 (15) (2) 6 5 15 7 21 8 1 (16) 42 21 (1)

Max (21) (29) (37) (19) (24) (14) (14) (6) (18) (32) (34) (18) (19) (20)

+1 STD (7) (22) (19) (9) (8) (1) (9) 7 (7) (15) (30) 11 (2) (11)

Min 64 8 32 47 34 64 59 50 39 43 30 123 102 29

-1 STD 40 (6) 23 25 23 38 28 38 27 24 4 97 58 12

HUL ITC Nestle Colgate GSKCHL APNT GCPL Marico Dabur Titan TGBL Britannia Pidilite Sector

Average Relative P/E (X)

3-Yr 2.2 1.6 2.9 2.2 2.0 2.2 2.0 1.7 1.9 1.9 1.5 1.5 1.9 1.8

5-Yr 2.0 1.6 2.8 2.1 1.9 2.1 1.9 1.8 1.8 1.9 1.4 1.5 1.7 1.8

10-Yr 1.8 1.5 2.2 1.7 1.5 1.7 1.7 1.6 1.6 1.7 1.2 1.5 1.5 1.6

Current Relative P/E 2.4 1.4 2.9 2.3 2.1 2.5 2.1 2.2 2.0 2.1 1.2 2.2 2.2 1.9

Current Prem/Disct to Avg (%)



Prem/Disc to 10-Yr Avg 33 (2) 28 36 43 53 21 43 25 19 3 45 51 17

5-year relative P/E variable (X)

Median 2.0 1.6 2.8 2.1 1.8 2.1 1.8 1.8 1.8 2.0 1.3 1.4 1.7 1.8

Average 2.0 1.6 2.8 2.1 1.9 2.1 1.9 1.8 1.8 1.9 1.4 1.5 1.7 1.8

STD 0.3 0.2 0.3 0.3 0.3 0.3 0.4 0.2 0.1 0.2 0.3 0.3 0.3 0.2

Max 2.6 2.2 3.5 2.7 3.0 2.6 2.6 2.2 2.1 2.4 2.0 2.3 2.2 2.2

+1 STD 2.3 1.9 3.1 2.4 2.2 2.4 2.2 2.0 2.0 2.1 1.7 1.8 2.0 2.0

Min 1.3 1.2 2.1 1.5 1.5 1.5 1.3 1.3 1.6 1.5 1.0 1.0 1.2 1.4

-1 STD 1.7 1.4 2.5 1.9 1.6 1.8 1.5 1.5 1.7 1.7 1.1 1.1 1.5 1.6

Difference versus current relative P/E (%)

Median 17 (12) 2 11 14 20 15 21 14 5 (8) 57 29 5

Average P/E 17 (12) 3 10 9 20 11 25 13 6 (13) 48 28 3

Max (7) (33) (18) (14) (30) (2) (20) - (3) (15) (38) (5) - (17)

+1 STD 2 (24) (7) (3) (5) 7 (7) 10 4 (4) (28) 20 11 (7)

Min 79 17 36 52 36 73 58 67 30 32 18 122 79 33

-1 STD 37 4 15 26 28 38 36 44 23 17 9 93 49 15

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Kotak Institutional Equities: Valuation summary of KIE Universe stocks

Source: Company, Bloomberg, Kotak Institutional Equities estimates

Target O/S

Price (Rs) price Upside Mkt cap. shares EPS (Rs) EPS growth (%) PER (X) EV/EBITDA (X) ADVT-3mo

Company Rating 17-Feb-16 (Rs) (%) (Rs mn) (US$ mn) (mn) 2016E 2017E 2018E 2016E 2017E 2018E 2016E 2017E 2018E 2016E 2017E 2018E 2016E 2017E 2018E 2016E 2017E 2018E 2016E 2017E 2018E (US$ mn)

Automobiles

Amara Raja Batteries SELL 839 735 (12.4) 143,303 2,094 171 30.4 34.3 39.0 26.1 12.9 13.5 27.6 24.4 21.5 16.5 14.2 12.5 6.8 5.6 4.7 0.7 0.8 0.9 27.4 25.3 23.8 3.7

Apollo Tyres BUY 160 225 40.9 81,291 1,188 509 21.4 22.6 23.8 (1.1) 5.9 5.1 7.5 7.1 6.7 4.0 4.3 4.4 1.3 1.1 1.0 1.3 1.3 1.4 19.6 17.5 15.9 5.9

Ashok Leyland ADD 90 95 5.6 256,129 3,743 2,846 3.4 4.9 6.3 277.9 41.9 28.8 26.2 18.5 14.4 13.8 10.9 8.9 4.5 3.9 3.3 1.1 1.6 2.1 18.0 22.4 24.8 17.4

Bajaj Auto ADD 2,357 2,600 10.3 682,168 9,970 289 128.2 141.8 159.9 17.6 10.6 12.7 18.4 16.6 14.7 14.0 13.2 11.9 5.4 4.6 3.9 2.2 2.4 2.7 31.8 29.8 28.8 9.5

Balkrishna Industries BUY 598 725 21.2 57,802 845 97 55.7 53.7 65.8 14.0 (3.6) 22.5 10.7 11.1 9.1 6.6 6.3 4.8 2.1 1.8 1.5 0.4 0.5 0.5 21.3 17.1 17.8 0.3

Bharat Forge BUY 785 955 21.6 182,767 2,671 237 29.3 36.3 47.5 (8.9) 24.0 30.8 26.8 21.6 16.5 14.2 11.9 9.3 4.7 4.0 3.4 0.8 0.9 1.2 18.7 20.0 22.2 10.6

Eicher Motors SELL 18,803 12,000 (36.2) 510,698 7,464 27 470.6 587.6 677.4 107.3 24.9 15.3 40.0 32.0 27.8 21.4 18.7 16.2 13.8 9.8 7.4 0.2 0.2 0.2 41.1 35.9 30.3 14.2

Exide Industries REDUCE 124 120 (3.4) 105,613 1,544 850 7.1 7.3 7.8 10.3 2.8 7.4 17.5 17.1 15.9 10.1 10.1 9.3 2.4 2.2 2.0 2.0 2.0 2.0 14.2 13.5 13.4 3.0

Hero Motocorp BUY 2,525 3,000 18.8 504,121 7,368 200 152.7 175.1 197.5 20.0 14.7 12.8 16.5 14.4 12.8 11.5 10.4 9.3 6.5 5.5 4.7 3.0 3.5 3.9 42.5 41.2 39.5 13.9

Mahindra CIE Automotive BUY 191 300 57.5 61,596 900 323 10.1 13.2 15.6 36.0 30.3 17.9 18.8 14.4 12.2 11.8 8.3 6.9 2.8 2.3 2.0 — — — 16.0 17.6 17.4 0.5

Mahindra & Mahindra ADD 1,200 1,325 10.4 745,559 10,897 569 59.3 71.4 79.0 9.2 20.5 10.6 20.3 16.8 15.2 14.5 12.4 11.0 3.1 2.7 2.4 1.2 1.5 1.6 16.0 17.2 16.9 18.5

Maruti Suzuki BUY 3,749 4,900 30.7 1,132,543 16,553 302 158.9 226.9 259.8 29.4 42.8 14.5 23.6 16.5 14.4 12.6 10.3 9.1 4.1 3.5 2.9 0.8 1.2 1.4 18.8 22.9 22.1 62.3

Minda Corp. BUY 92 110 19.5 19,267 282 209 4.7 6.2 8.0 13.1 31.4 28.6 19.4 14.8 11.5 9.9 7.6 6.2 3.4 2.9 2.3 0.6 0.7 0.8 19.3 21.1 22.3 0.3

Motherson Sumi Systems SELL 223 220 (1.2) 294,637 4,306 1,323 9.3 11.5 14.0 27.4 23.4 21.6 23.9 19.3 15.9 9.1 7.1 5.7 7.1 5.7 4.7 1.3 1.6 1.9 33.1 32.9 32.4 13.5

Suprajit Engineering BUY 143 175 22.4 17,163 251 120 6.3 7.9 9.3 49.9 25.0 18.4 22.8 18.2 15.4 13.9 10.0 8.7 5.7 4.6 3.7 0.8 1.1 1.3 27.9 28.0 26.9 0.1

Tata Motors BUY 310 450 45.1 1,017,068 14,865 3,395 34.1 38.8 54.0 (18.2) 13.6 39.1 9.1 8.0 5.7 4.2 3.7 3.1 1.4 1.2 1.0 — — — 18.0 16.6 19.3 50.5

WABCO India BUY 5,570 7,000 25.7 105,649 1,544 19 110.3 163.7 186.3 73.4 48.3 13.8 50.5 34.0 29.9 33.2 21.8 18.7 10.1 8.0 6.5 0.2 0.3 0.3 21.9 26.2 23.9 0.7

Automobiles Attractive 5,917,375 86,486 5.8 19.7 22.6 17.3 14.5 11.8 8.8 7.5 6.5 3.3 2.8 2.3 1.0 1.3 1.4 19.0 19.3 19.9 224.8

Banks/Financial Institutions

Axis Bank BUY 403 540 34.0 959,422 14,023 2,371 33.6 36.3 40.9 8.2 7.9 12.8 12.0 11.1 9.9 — — — 1.9 1.6 1.4 1.3 1.4 1.5 16.6 15.7 15.6 69.1

Bajaj Finserv ADD 1,701 1,965 15.5 270,706 3,957 159 111.1 140.6 161.0 4.5 26.6 14.5 15.3 12.1 10.6 — — — 2.0 1.7 1.7 0.8 0.8 0.8 14.5 15.3 16.4 1.3

Bank of Baroda ADD 138 120 (13.2) 318,665 4,657 2,449 (14.6) 4.5 10.2 (195.5) 130.7 128.4 (9.5) 30.8 13.5 — — — 0.9 0.9 0.8 (2.2) 0.7 1.5 (9.3) 2.9 6.3 16.3

Bank of India ADD 86 110 27.8 69,865 1,021 813 (40.0) 15.6 33.0 (255.9) 138.9 111.8 (2.1) 5.5 2.6 — — — 0.2 0.2 0.2 (9.1) 3.5 7.5 (11.6) 4.4 8.9 5.5

Canara Bank REDUCE 172 190 10.4 93,422 1,365 515 20.7 43.8 60.0 (63.6) 111.7 37.0 8.3 3.9 2.9 — — — 0.3 0.2 0.2 2.2 4.7 6.4 3.2 6.5 8.4 8.3

Cholamandalam ADD 666 730 9.6 103,967 1,520 155 34.5 42.0 51.3 14.5 21.6 22.2 19.3 15.9 13.0 — — — 2.9 2.5 2.2 0.8 1.0 1.2 17.1 16.8 17.9 0.8

City Union Bank BUY 84 110 31.7 49,979 730 597 7.8 8.0 9.2 18.5 2.3 14.4 10.6 10.4 9.1 — — — 1.6 1.4 1.3 1.6 1.6 1.8 16.2 14.7 14.9 0.6

DCB Bank SELL 73 100 37.0 20,740 303 282 5.3 3.6 6.6 (25.8) (32.0) 83.3 13.8 20.3 11.1 — — — 1.2 1.1 1.0 — — — 9.3 5.8 9.9 1.5

Dewan Housing Finance BUY 154 230 49.8 44,803 655 291 27.9 32.8 40.1 (41.4) 17.5 22.4 5.5 4.7 3.8 — — — 0.9 0.8 0.7 2.0 2.3 2.8 16.1 16.5 17.4 3.0

Federal Bank BUY 46 75 63.9 78,586 1,149 1,713 3.8 5.7 7.0 (34.5) 48.4 22.4 11.9 8.0 6.5 — — — 1.0 0.9 0.8 1.7 2.5 3.1 8.2 11.3 12.7 3.3

HDFC ADD 1,076 1,325 23.1 1,699,349 24,837 1,575 43.9 66.2 59.7 8.6 50.9 (9.8) 24.5 16.3 18.0 — — — 5.0 4.5 4.0 1.7 2.6 2.3 20.5 27.0 21.3 42.7

HDFC Bank ADD 975 1,150 18.0 2,462,688 35,994 2,507 49.1 59.1 71.8 20.4 20.4 21.6 19.9 16.5 13.6 — — — 3.4 2.9 2.5 1.0 1.2 1.4 18.4 19.2 20.0 21.5

ICICI Bank BUY 191 340 78.2 1,108,789 16,206 5,798 18.7 20.8 25.0 (2.9) 11.4 20.1 10.2 9.1 7.6 — — — 1.3 1.2 1.1 2.9 3.3 3.9 12.9 13.2 14.5 57.7

IDFC BUY 40 70 74.6 63,920 934 1,593 (4.1) 5.1 6.7 (138.0) 224.2 32.9 (9.8) 7.9 6.0 — — — 0.6 0.6 0.5 (5.1) 1.4 1.5 (4.5) 11.2 14.2 3.6

IDFC Bank BUY 52 70 35.9 174,720 2,554 3,389 1.5 2.7 4.0 - 85.4 47.7 35.1 19.0 12.8 — — — 1.2 1.1 1.0 0.6 1.1 1.6 6.7 6.6 9.2 -

IIFL Holdings BUY 183 240 31.5 57,576 842 310 16.6 19.5 20.2 14.8 17.4 3.9 11.0 9.4 9.0 — — — 1.7 1.4 1.2 0.0 0.0 0.0 18.9 18.1 16.8 0.4

IndusInd Bank ADD 832 1,040 25.1 494,519 7,228 589 37.4 46.9 56.9 10.4 25.4 21.2 22.2 17.7 14.6 — — — 2.8 2.5 2.1 0.5 0.7 0.8 16.3 15.0 15.9 18.0

J&K Bank BUY 68 100 46.6 33,062 483 485 9.7 14.2 15.5 (7.3) 46.1 8.8 7.0 4.8 4.4 — — — 0.5 0.5 0.4 2.9 4.2 4.5 7.5 10.2 10.3 0.8

Karur Vysya Bank BUY 425 580 36.5 51,342 750 122 53.5 61.9 72.0 42.9 15.6 16.3 7.9 6.9 5.9 — — — 1.1 1.0 0.9 3.2 3.6 4.2 14.5 15.1 15.8 0.7

L&T Finance Holdings ADD 51 72 41.2 89,423 1,307 1,750 5.0 5.3 6.6 0.4 6.4 24.6 10.3 9.6 7.7 — — — 1.2 1.0 0.9 2.4 1.2 1.7 12.7 12.1 13.2 1.7

LIC Housing Finance ADD 406 515 26.8 204,918 2,995 505 36.8 39.9 46.0 22.5 8.4 15.4 11.0 10.2 8.8 — — — 2.2 1.9 1.7 1.6 1.7 2.0 19.9 18.5 20.3 12.8

Magma Fincorp ADD 84 90 6.7 19,972 292 236 8.1 9.7 12.1 (7.7) 19.3 25.4 10.4 8.7 7.0 — — — 0.9 0.8 0.7 1.0 1.7 2.2 9.6 9.7 10.8 0.2

Mahindra & Mahindra Financial BUY 210 265 26.2 119,441 1,746 564 10.8 15.2 20.9 (27.1) 41.3 37.3 19.5 13.8 10.1 — — — 1.9 1.8 1.6 1.3 1.9 2.6 10.3 13.4 16.6 3.6

Max Financial Services ADD 346 359 3.7 92,417 1,351 266 18.6 22.6 30.4 77.3 21.6 34.1 18.6 15.3 11.4 — — — 1.7 1.5 1.3 3.7 4.5 6.0 11.5 10.4 11.9 2.6

Muthoot Finance BUY 186 225 20.8 74,156 1,084 397 18.5 22.0 27.2 9.8 18.9 23.4 10.0 8.5 6.8 — — — 1.3 1.2 1.1 3.0 3.6 4.4 13.8 15.0 16.7 0.8

Oriental Bank of Commerce ADD 82 120 45.6 24,708 361 300 8.0 20.4 29.5 (51.6) 153.7 45.0 10.3 4.0 2.8 — — — 0.2 0.2 0.2 1.9 4.9 7.1 1.7 4.3 6.0 4.9

PFC REDUCE 151 180 19.1 199,524 2,916 1,319 48.2 40.8 41.7 6.6 (15.4) 2.4 3.1 3.7 3.6 — — — 0.5 0.5 0.4 6.4 5.4 5.6 18.3 13.7 12.7 7.5

Punjab National Bank REDUCE 73 100 37.6 142,655 2,085 1,855 6.5 18.4 22.3 (60.8) 183.7 21.5 11.2 4.0 3.3 — — — 0.3 0.3 0.3 1.8 5.1 6.1 3.1 8.5 9.6 11.6

Rural Electrification Corp. REDUCE 162 185 14.5 159,524 2,332 987 59.7 45.5 35.9 12.1 (23.8) (21.1) 2.7 3.5 4.5 — — — 0.5 0.5 0.4 7.9 6.0 4.8 21.7 14.4 10.4 7.6

Shriram City Union Finance ADD 1,420 1,625 14.4 93,617 1,368 66 99.1 118.2 140.1 17.0 19.2 18.5 14.3 12.0 10.1 — — — 2.0 1.7 1.5 0.8 0.9 1.1 14.6 15.3 15.8 0.4

Shriram Transport BUY 834 1,050 25.9 189,198 2,765 223 62.7 72.4 88.2 13.1 15.4 21.8 13.3 11.5 9.5 — — — 1.8 1.6 1.4 1.1 1.2 1.5 14.5 15.1 16.1 7.4

SKS Microfinance ADD 506 560 10.7 64,330 940 126 24.2 31.7 40.7 62.3 30.8 28.3 20.9 16.0 12.4 — — — 4.7 3.6 2.8 — — — 25.5 25.7 25.5 13.7

State Bank of India BUY 159 220 38.4 1,233,893 18,034 7,566 14.5 18.6 25.0 (17.5) 28.5 34.2 11.0 8.5 6.4 — — — 0.9 0.8 0.7 2.4 2.5 2.6 8.2 9.8 12.0 56.6

Union Bank ADD 115 140 22.2 78,746 1,151 687 19.9 29.3 42.4 (29.0) 46.9 44.8 5.8 3.9 2.7 — — — 0.4 0.3 0.3 3.2 4.7 6.8 7.0 9.4 12.4 8.0

YES Bank ADD 720 860 19.4 302,506 4,421 418 59.6 66.6 74.4 24.2 11.6 11.8 12.1 10.8 9.7 — — — 2.2 1.9 1.7 1.6 1.7 1.9 19.7 18.9 18.3 38.5

Banks/Financial Institutions Attractive 11,245,148 164,355 (15.7) 36.7 19.5 14.7 10.8 9.0 1.4 1.3 1.2 1.5 2.0 2.3 9.7 12.1 13.1 432.8

Dividend yield (%) RoE (%)Price/BV (X)

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Target O/S



Cement

ACC SELL 1,226 1,280 4.4 230,185 3,364 188 39.6 55.5 79.4 (13.3) 40.1 43.0 30.9 22.1 15.4 18.5 11.7 8.1 2.7 2.5 2.3 1.6 1.9 1.9 8.9 11.9 15.6 3.7

Ambuja Cements SELL 193 190 (1.8) 300,137 4,387 1,550 5.6 8.3 10.4 (34.6) 49.2 25.4 34.7 23.3 18.6 17.4 11.7 9.0 2.8 2.6 2.4 2.2 2.2 2.7 8.0 11.6 13.7 6.0

Dalmia Bharat BUY 687 850 23.7 55,848 816 81 16.1 68.7 96.8 1,322.1 327.6 41.0 42.8 10.0 7.1 8.7 5.8 4.4 1.8 1.5 1.2 0.2 0.3 0.3 4.2 16.1 19.1 0.4

Grasim Industries ADD 3,456 4,200 21.5 322,536 4,714 93 242.1 314.2 406.5 26.9 29.7 29.4 14.3 11.0 8.5 7.2 5.2 3.6 1.2 1.1 1.0 0.5 0.5 0.5 9.2 10.7 12.4 3.0

India Cements REDUCE 71 80 13.5 21,656 317 307 4.6 7.6 11.0 4,391.4 63.4 45.2 NM 9.3 6.4 6.8 5.7 4.8 0.6 0.6 0.5 3.0 3.0 3.0 4.0 6.2 8.5 5.0

J K Cement BUY 443 640 44.6 30,949 452 70 4.7 34.6 64.6 (74.1) 638.5 86.7 94.5 12.8 6.9 11.6 7.2 5.2 1.9 1.7 1.4 1.1 1.1 1.1 2.0 14.2 22.4 0.2

JK Lakshmi Cement BUY 260 325 25.0 30,594 447 118 (2.3) 15.5 28.0 (115.6) 769.7 81.4 (112.6) 16.8 9.3 18.8 9.4 6.0 2.4 2.1 1.8 0.8 0.8 0.8 (2.1) 13.5 20.9 0.3

Orient Cement BUY 132 160 21.6 26,950 394 205 2.7 8.4 16.5 (71.5) 211.0 96.3 48.6 15.6 8.0 21.9 8.9 5.7 2.7 2.4 1.9 1.5 1.5 1.5 5.7 16.5 27.1 0.3

Shree Cement SELL 10,074 9,125 (9.4) 350,962 5,130 35 175.3 315.3 434.8 32.3 79.8 37.9 57.5 32.0 23.2 19.3 12.6 9.3 6.1 5.2 4.3 0.2 0.2 0.2 11.0 17.5 20.2 1.8

UltraTech Cement SELL 2,777 2,450 (11.8) 761,950 11,136 274 69.4 105.9 150.6 (5.5) 52.5 42.3 40.0 26.2 18.4 19.3 13.8 10.3 3.6 3.2 2.8 0.3 0.3 0.3 9.5 13.0 16.1 11.2

Cement Cautious 2,131,768 31,157 (2.8) 58.6 38.9 31.7 20.0 14.4 13.5 9.3 6.9 2.6 2.3 2.0 0.8 0.8 0.9 8.1 11.6 14.2 31.8

Consumer products

Asian Paints REDUCE 856 800 (6.5) 821,073 12,000 959 19.0 22.4 26.5 28.0 17.8 18.5 45.1 38.3 32.3 28.6 23.9 20.2 14.7 12.4 10.5 0.9 1.1 1.4 35.3 35.2 35.2 13.9

Bajaj Corp. BUY 389 495 27.3 57,341 838 148 17.1 19.4 21.8 15.0 13.5 12.2 22.7 20.0 17.8 19.2 15.9 13.4 11.7 10.7 9.7 3.0 3.2 3.9 51.6 55.8 56.9 0.4

Britannia Industries BUY 2,652 3,300 24.4 318,200 4,651 120 71.4 87.5 109.1 57.9 22.6 24.6 37.1 30.3 24.3 24.4 20.0 16.0 18.4 14.0 10.8 0.9 1.3 1.7 57.5 52.3 50.1 8.3

Coffee Day Enterprises BUY 228 270 18.4 46,968 686 206 (0.9) 3.4 6.9 81.4 458.2 103.3 (240.4) 67.1 33.0 14.4 12.6 10.9 2.2 2.1 2.0 - - - (1.4) 3.2 6.1 1.4

Colgate-Palmolive (India) REDUCE 837 900 7.6 227,570 3,326 272 21.9 25.2 28.7 6.7 14.9 13.7 38.2 33.2 29.2 23.6 20.4 17.5 26.0 23.0 20.4 1.8 2.1 2.4 72.4 73.4 73.9 4.8

Dabur India ADD 241 280 16.0 424,745 6,208 1,759 7.1 8.0 9.2 19.0 12.9 14.3 34.0 30.1 26.3 28.0 24.4 20.9 10.4 8.8 7.5 1.1 1.3 1.5 33.7 31.7 30.6 5.0

GlaxoSmithKline Consumer ADD 5,543 6,500 17.3 233,093 3,407 42 169.3 192.4 218.9 22.0 13.6 13.7 32.7 28.8 25.3 22.3 19.2 16.5 9.2 7.9 6.8 1.2 1.4 1.6 30.6 29.4 28.8 1.5

Godrej Consumer Products ADD 1,178 1,285 9.1 401,251 5,865 340 33.4 39.3 46.4 26.9 17.7 18.1 35.3 30.0 25.4 25.0 21.4 17.7 7.9 6.7 5.6 0.6 0.7 0.9 24.2 24.0 24.0 4.6

Hindustan Unilever REDUCE 813 825 1.5 1,758,253 25,698 2,164 18.7 21.5 24.2 7.3 14.9 12.8 43.5 37.9 33.6 30.1 26.1 23.0 44.1 41.7 40.1 1.8 2.1 2.4 104.7 113.2 121.8 16.1

ITC BUY 300 370 23.4 2,410,272 35,228 8,052 12.3 13.8 15.7 2.7 12.6 14.1 24.5 21.7 19.1 15.9 14.0 12.1 7.1 6.5 6.0 2.3 2.7 3.2 27.8 28.7 31.5 32.8

Jubilant Foodworks REDUCE 1,049 1,000 (4.7) 68,977 1,008 66 15.8 24.1 33.6 (6.1) 51.8 39.6 66.2 43.6 31.2 24.4 17.7 13.4 9.6 8.2 6.9 0.3 0.5 0.7 15.3 20.4 24.1 6.3

Jyothy Laboratories NR 271 - - 49,118 718 181 8.2 10.0 11.3 42.7 21.6 12.9 33.0 27.2 24.1 21.4 18.4 15.2 5.7 5.8 5.2 1.5 1.5 1.8 23.5 26.3 22.9 0.5

Manpasand Beverages ADD 438 525 20.0 21,899 320 50 11.2 17.6 22.9 40.6 57.2 29.7 39.0 24.8 19.1 18.1 13.2 10.3 3.6 3.2 2.8 0.3 0.6 0.9 14.0 13.6 15.6 0.2

Marico REDUCE 227 220 (3.2) 293,256 4,286 1,290 5.6 6.9 7.9 25.7 22.7 14.5 40.6 33.1 28.9 27.3 22.1 19.2 13.1 10.6 8.7 0.9 1.0 1.2 35.6 35.4 33.1 8.5

Nestle India REDUCE 5,080 4,800 (5.5) 489,792 7,159 96 94.4 119.9 143.2 (22.7) 26.9 19.5 53.8 42.4 35.5 29.8 23.5 20.1 17.4 15.2 13.5 1.0 1.3 1.7 32.2 38.3 40.4 3.9

Page Industries SELL 10,583 10,000 (5.5) 118,042 1,725 11 214.2 269.3 325.5 21.9 25.7 20.9 49.4 39.3 32.5 30.8 24.9 20.5 22.9 17.0 12.8 0.8 0.9 1.0 53.0 49.7 45.0 2.1

PC Jeweller NR 385 - (100.0) 68,998 1,008 179 25.2 30.6 36.8 19.1 21.7 20.2 15.3 12.6 10.5 8.7 6.7 5.5 2.9 2.4 2.1 1.0 1.2 1.5 20.6 21.1 21.3 1.1

Pidilite Industries REDUCE 601 570 (5.1) 307,862 4,500 513 14.3 17.0 19.6 41.8 18.5 15.5 42.0 35.4 30.6 26.1 22.3 19.1 11.1 9.2 7.7 0.7 0.8 1.0 29.1 28.5 27.5 3.7

Speciality Restaurants REDUCE 85 105 22.9 4,013 59 47 1.2 2.3 3.5 (39.0) 83.8 55.3 69.6 37.9 24.4 12.3 8.7 6.5 1.3 1.2 1.2 1.2 1.2 1.2 1.9 3.3 5.0 0.1

Tata Global Beverages BUY 104 135 29.8 65,637 959 631 4.7 5.8 6.8 (13.8) 24.0 16.4 22.2 17.9 15.4 10.5 9.0 7.9 1.2 1.1 1.1 2.2 2.2 2.4 5.3 6.4 7.2 2.6

Titan Company REDUCE 327 320 (2.1) 290,173 4,241 888 8.7 10.8 12.2 (6.5) 24.1 13.6 37.6 30.3 26.7 26.2 21.3 18.0 8.1 6.9 5.9 0.8 1.0 1.1 23.2 24.7 24.0 6.4

United Breweries SELL 809 750 (7.3) 213,891 3,126 264 12.0 15.0 19.0 22.3 25.0 26.4 67.2 53.8 42.6 28.3 24.0 20.1 10.1 8.8 7.5 0.2 0.3 0.4 16.1 17.5 19.0 2.5

United Spirits ADD 2,309 2,900 25.6 335,533 4,904 145 22.8 36.7 56.2 304.5 60.9 53.4 NM 63.0 41.1 35.4 28.4 21.7 19.5 12.0 8.9 0.2 0.4 0.4 27.8 23.5 24.9 9.7

Consumer products Cautious 9,025,955 131,920 11.7 17.3 16.4 35.2 30.0 25.8 22.6 19.3 16.4 10.4 9.2 8.1 1.5 1.7 2.0 29.6 30.5 31.3 136.6

Energy

Aban Offshore RS 151 — — 8,810 129 58 28.4 23.8 35.5 (68.3) (16.0) 48.9 5.3 6.3 4.3 7.4 7.2 6.6 0.2 0.2 0.2 3.9 4.0 4.0 3.0 2.6 3.9 4.5

BPCL BUY 781 960 22.9 564,693 8,253 723 91.1 92.9 97.1 29.6 2.0 4.5 8.6 8.4 8.0 5.6 5.1 4.3 2.1 1.8 1.5 2.8 2.9 3.0 26.6 22.8 20.4 15.5

Cairn India RS 126 — — 236,045 3,450 1,875 8.0 10.1 14.0 (76.9) 26.0 38.2 15.7 12.4 9.0 5.8 4.6 3.4 0.4 0.4 0.4 5.6 5.6 6.4 2.6 3.2 4.4 5.9

Castrol India SELL 397 430 8.4 196,094 2,866 495 12.7 13.9 14.9 32.2 9.8 7.0 31.3 28.5 26.6 20.5 18.7 17.5 37.6 35.2 32.7 2.6 2.8 3.0 123.3 127.8 127.3 1.6

GAIL (India) ADD 324 400 23.4 411,177 6,010 1,268 15.8 24.1 32.4 (39.6) 52.7 34.5 20.5 13.4 10.0 12.3 8.9 7.0 1.4 1.3 1.2 1.5 1.9 2.8 6.7 9.7 12.1 10.0

GSPL ADD 131 145 10.5 73,920 1,080 563 8.0 10.2 11.0 23.8 27.0 7.9 16.4 12.9 12.0 8.3 6.5 6.1 1.9 1.7 1.6 1.5 2.3 4.2 11.9 13.9 13.9 1.2

HPCL BUY 709 870 22.8 239,934 3,507 339 102.0 106.8 105.4 26.5 4.7 (1.3) 6.9 6.6 6.7 5.7 5.1 4.9 1.3 1.2 1.1 4.4 4.6 4.5 20.2 18.7 16.5 13.5

IOCL BUY 383 480 25.5 928,692 13,573 2,428 52.9 56.3 58.2 207.6 6.3 3.3 7.2 6.8 6.6 5.1 4.0 3.7 1.2 1.1 1.0 4.6 4.8 4.6 17.7 16.8 15.6 9.0

ONGC BUY 200 250 24.8 1,714,092 25,053 8,556 19.3 20.0 27.4 (12.7) 3.7 36.7 10.4 10.0 7.3 4.4 4.2 3.3 0.9 0.9 0.8 3.2 4.0 5.2 8.9 8.9 11.5 14.0

Oil India BUY 316 400 26.7 189,749 2,773 601 36.3 38.1 45.6 (13.1) 5.1 19.6 8.7 8.3 6.9 4.8 4.7 4.0 0.8 0.8 0.8 4.8 4.9 5.9 9.9 9.9 11.2 5.6

Petronet LNG ADD 238 275 15.5 178,538 2,609 750 11.6 15.5 23.1 17.6 34.2 48.9 20.6 15.3 10.3 13.1 10.1 6.9 2.8 2.5 2.1 1.1 1.5 2.5 15.6 17.1 22.1 8.1

Reliance Industries ADD 953 1,130 18.6 2,802,249 40,957 3,239 84.7 89.0 100.2 20.7 5.0 12.7 11.2 10.7 9.5 9.5 8.0 6.3 1.3 1.2 1.1 1.1 1.2 1.4 12.0 11.4 11.7 67.7

Energy Attractive 7,543,992 110,260 9.5 6.7 17.1 10.1 9.5 8.1 6.6 5.7 4.7 1.1 1.0 0.9 2.6 2.9 3.4 11.0 10.9 11.8 156.6


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Industrials

ABB SELL 1,106 800 (27.6) 234,265 3,424 212 14.2 21.2 28.4 31.2 49.8 34.1 78.1 52.1 38.9 32.9 26.6 21.7 7.8 7.0 6.2 0.3 0.5 0.6 10.3 14.2 17.0 1.7

BHEL SELL 106 100 (5.4) 258,834 3,783 2,448 (2.8) 5.0 10.3 (148.0) 280.5 105.2 (38.0) 21.0 10.2 (11.2) 5.0 0.6 0.8 0.8 0.7 (0.6) 1.0 2.1 (2.0) 3.6 7.1 9.5

Carborundum Universal ADD 167 185 10.8 31,441 460 188 6.9 10.2 12.7 33.3 47.2 25.1 24.2 16.4 13.1 10.1 8.0 6.6 2.6 2.3 2.0 0.8 1.1 1.3 11.3 14.9 16.5 0.1

Crompton Greaves REDUCE 121 195 61.1 75,868 1,109 627 (3.2) (2.8) (0.7) (208.6) 13.5 76.1 (37.9) (43.9) (183.3) 25.4 33.2 22.6 2.0 2.1 2.1 1.1 0.3 0.3 (5.2) (4.6) (1.1) 9.2

Cummins India REDUCE 888 875 (1.5) 246,154 3,598 277 28.1 30.9 36.1 3.8 9.8 17.0 31.6 28.8 24.6 29.7 26.3 22.3 7.6 6.9 6.2 1.6 1.7 2.0 25.5 25.2 26.5 2.5

Havells India REDUCE 282 285 1.0 176,196 2,575 624 7.7 9.2 10.7 3.1 20.3 16.0 36.8 30.6 26.3 21.9 18.6 16.4 6.7 6.0 5.3 1.1 1.3 1.5 19.1 20.7 21.5 10.8

Kalpataru Power Transmission BUY 174 250 44.1 26,633 389 153 9.3 13.3 17.8 18.5 43.3 33.6 18.7 13.0 9.8 7.3 6.4 5.7 1.1 1.1 1.0 0.9 0.9 0.9 6.3 8.4 10.4 0.4

KEC International ADD 105 140 33.2 27,020 395 257 7.9 11.5 14.9 26.2 45.3 29.4 13.3 9.2 7.1 7.1 5.7 4.9 1.8 1.5 1.3 1.1 1.6 2.0 14.3 18.2 20.0 1.5

L&T ADD 1,122 1,300 15.8 1,045,538 15,281 930 41.5 53.6 66.0 18.4 29.0 23.2 27.0 20.9 17.0 17.7 14.9 12.8 2.7 2.5 2.3 1.3 1.2 1.3 10.4 12.5 14.0 45.0

Siemens SELL 1,029 750 (27.1) 366,412 5,355 356 18.3 23.3 29.7 62.4 27.4 27.4 56.3 44.2 34.7 32.3 26.1 20.6 6.6 6.0 5.4 0.5 0.7 0.9 12.2 14.2 16.4 4.9

Thermax REDUCE 775 850 9.7 92,346 1,350 119 26.2 24.0 31.0 20.5 (8.5) 29.3 29.6 32.3 25.0 18.4 20.1 15.3 3.9 3.6 3.3 0.9 0.8 0.9 13.8 11.6 13.7 0.7

Voltas ADD 236 270 14.4 78,089 1,141 331 9.3 11.3 13.7 (9.1) 21.7 20.8 25.4 20.9 17.3 20.8 17.0 13.3 3.4 3.0 2.7 1.0 1.4 1.7 13.9 15.3 16.7 6.7

Industrials Cautious 2,658,795 38,860 (18.2) 60.7 35.3 42.3 26.3 19.5 21.1 15.4 12.2 2.7 2.5 2.3 0.9 1.1 1.3 6.3 9.5 11.8 93.0

Infrastructure

Adani Port and SEZ BUY 213 260 22.4 440,077 6,432 2,084 12.5 15.8 13.6 12.4 26.4 (13.9) 17.0 13.5 15.7 13.4 11.2 10.2 3.4 2.8 2.4 0.7 0.7 1.1 21.9 22.7 16.6 13.9

Ashoka Buildcon BUY 175 230 31.5 32,732 478 188 5.4 7.0 6.2 5.8 29.7 (11.8) 32.2 24.8 28.2 9.9 9.2 8.4 1.7 1.6 1.6 0.8 1.0 1.2 6.2 6.7 5.7 0.6

Container Corporation ADD 1,187 1,400 17.9 231,434 3,383 195 44.2 50.2 58.9 (17.7) 13.5 17.3 26.8 23.6 20.2 17.7 15.2 12.6 2.8 2.6 2.4 0.9 1.1 1.2 10.9 11.4 12.3 3.5

Gujarat Pipavav Port ADD 154 185 20.1 74,474 1,088 483 3.9 5.5 7.3 (56.6) 42.2 32.1 39.7 27.9 21.1 18.6 14.9 11.5 3.6 3.2 2.8 — — 1.0 9.7 12.1 14.1 1.5

IRB Infrastructure BUY 214 295 37.7 75,316 1,101 351 17.6 16.9 14.9 14.2 (4.0) (12.0) 12.1 12.7 14.4 8.0 7.2 7.3 1.4 1.2 1.1 1.8 1.8 1.8 12.8 10.1 7.7 6.0

Sadbhav Engineering ADD 243 330 35.7 41,726 610 172 7.8 11.2 15.7 10.3 43.7 39.5 31.1 21.7 15.5 15.4 12.5 9.7 2.8 2.5 2.2 — — — 9.5 12.4 15.3 0.5

Infrastructure Attractive 895,759 13,092 (0.5) 21.0 (3.9) 19.9 16.4 17.1 12.5 10.6 9.6 2.8 2.4 2.2 0.7 0.8 1.1 14.1 14.6 12.6 26.1

Internet

Info Edge BUY 730 955 30.9 88,099 1,288 121 11.6 16.7 23.0 (28.3) 44.8 37.2 63.1 43.6 31.8 54.4 32.2 22.1 5.0 4.7 4.3 0.6 0.8 1.1 8.2 11.2 14.2 1.3

Just Dial REDUCE 526 710 35.0 37,084 542 69 19.0 15.3 27.2 (3.7) (19.6) 78.2 27.7 34.5 19.3 18.5 22.7 11.2 5.8 5.1 4.1 0.4 0.3 0.5 20.3 15.8 23.6 17.0

Internet Attractive 125,182 1,830 (18.5) 13.6 51.3 46.2 40.6 26.9 35.6 28.9 17.7 5.3 4.8 4.3 0.5 0.6 0.9 11.4 11.9 16.0 18.3

Media

DB Corp. ADD 305 330 8.1 56,077 820 184 17.5 21.5 25.8 1.6 22.7 20.0 17.4 14.2 11.8 9.4 7.8 6.5 4.0 3.7 3.4 3.2 4.2 5.2 23.9 27.0 29.7 0.1

DishTV BUY 72 115 60.8 76,207 1,114 1,066 2.7 3.6 4.5 9,116.5 33.9 25.0 NM 19.7 15.7 7.5 6.3 5.1 4.6 4.6 4.6 — — — 17.4 23.3 29.1 6.7

Jagran Prakashan ADD 155 180 15.9 50,753 742 327 10.0 12.0 14.0 24.8 20.3 16.5 15.5 12.9 11.1 8.8 7.2 6.1 3.7 3.3 3.0 3.2 3.9 4.5 26.1 27.1 28.3 0.3

PVR BUY 735 900 22.5 34,282 501 47 20.7 24.0 33.3 703.7 15.7 38.9 35.4 30.7 22.1 13.3 10.4 8.8 4.0 3.6 3.2 0.3 0.3 0.5 15.4 12.5 15.3 1.2

Sun TV Network ADD 333 390 17.1 131,289 1,919 394 23.1 26.1 29.7 16.2 13.2 13.8 14.4 12.8 11.2 9.0 7.7 6.6 3.6 3.3 3.0 4.0 4.6 5.2 26.0 27.0 28.1 6.0

Zee Entertainment Enterprises BUY 371 465 25.5 355,894 5,202 961 9.5 12.8 16.2 9.5 34.9 26.9 39.1 29.0 22.8 23.2 18.1 14.0 5.8 5.2 4.6 1.2 1.5 1.9 15.6 18.9 21.2 12.9

Media Neutral 704,502 10,297 29.8 24.2 21.3 24.7 19.9 16.4 12.8 10.6 8.7 4.7 4.3 3.9 1.7 2.0 2.5 19.0 21.5 23.5 27.1

Metals & Mining

Coal India ADD 313 360 15.1 1,975,759 28,877 6,316 24.2 26.1 30.9 11.5 7.8 18.0 12.9 12.0 10.1 7.0 7.0 5.8 4.1 3.7 3.4 4.6 5.0 5.9 33.7 32.8 34.9 16.5

Hindalco Industries REDUCE 66 70 6.4 135,876 1,986 2,065 0.5 2.8 7.3 (94.6) 427.3 157.0 122.0 23.1 9.0 9.2 7.3 6.2 0.4 0.4 0.3 1.5 1.5 1.5 0.3 1.5 3.8 11.5

Hindustan Zinc BUY 163 175 7.2 689,783 10,082 4,225 18.0 17.0 18.1 (7.1) (5.4) 6.5 9.1 9.6 9.0 5.3 4.6 3.8 1.4 1.3 1.2 3.9 2.7 2.7 16.7 14.4 13.9 2.6

Jindal Steel and Power RS 57 — — 52,195 763 915 (17.3) (16.9) (0.7) (350.1) 2.3 96.1 (3.3) (3.4) (86.1) 15.3 10.5 7.7 0.3 0.3 0.3 - - - (7.9) (8.4) (0.3) 12.3

JSW Steel REDUCE 1,048 1,030 (1.7) 253,204 3,701 242 (18.6) 115.9 160.0 (124.6) 723.9 38.0 (56.4) 9.0 6.5 11.3 5.7 5.0 1.2 1.0 0.9 1.2 1.2 1.2 (2.0) 12.2 14.9 15.5

National Aluminium Co. SELL 33 31 (4.8) 83,889 1,226 2,577 2.5 1.9 2.5 (46.6) (25.7) 30.8 12.8 17.3 13.2 3.1 4.0 2.7 0.6 0.6 0.6 5.4 3.1 3.1 5.1 3.7 4.8 0.5

NMDC SELL 89 75 (16.0) 353,851 5,172 3,965 8.2 7.2 7.3 (50.4) (12.1) 1.9 10.9 12.4 12.2 6.4 7.8 7.3 1.1 1.2 1.2 10.6 7.8 7.8 10.2 9.2 9.6 2.1

Tata Steel REDUCE 251 220 (12.4) 244,018 3,566 971 (29.7) 14.3 24.5 (91,652.8) 148.1 71.7 (8.5) 18 10.2 15.8 6.9 5.7 0.8 0.8 0.7 3.2 0.8 0.8 (9.5) 4.6 7.5 29.1

Vedanta BUY 74 110 47.8 220,573 3,224 3,717 7.3 10.6 17.7 (57.4) 46.0 66.8 10.2 7.0 4.2 6.7 5.5 4.5 0.5 0.4 0.4 4.4 4.4 4.4 4.7 6.4 10.1 20.3

Metals & Mining Cautious 4,009,148 58,596 (37.1) 38.5 31.4 16.2 11.7 8.9 8.5 6.6 5.5 1.3 1.2 1.2 4.6 4.2 4.6 8.0 10.6 13.0 110.4


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Pharmaceutical

Biocon SELL 462 390 (15.5) 92,330 1,349 200 21.6 25.2 30.6 10.2 16.9 21.2 21.4 18.3 15.1 13.2 10.1 7.8 2.0 1.9 1.7 1.6 1.9 2.3 10.9 10.7 11.9 4.8

Cipla BUY 519 700 34.8 417,004 6,095 805 22.2 26.9 37.6 51.4 21.3 39.8 23.4 19.3 13.8 15.8 12.7 9.1 3.4 3.0 2.5 0.9 1.1 1.5 15.3 16.4 19.9 11.4

Dr Reddy's Laboratories NR 2,961 - (100.0) 504,905 7,379 171 140.8 127.4 145.5 3.8 (9.5) 14.2 21.0 23.2 20.3 12.0 12.5 10.6 3.8 3.4 3.0 0.7 0.6 0.7 19.8 15.4 15.5 30.7

Lupin REDUCE 1,730 1,700 (1.8) 779,603 11,394 450 48.5 67.6 83.7 (9.3) 39.5 23.8 35.7 25.6 20.7 23.3 14.8 13.1 7.2 5.8 4.7 0.4 0.6 0.7 22.2 25.3 25.2 25.7

Sun Pharmaceuticals SELL 856 760 (11.2) 2,059,574 30,102 2,406 22.1 31.7 35.1 11.1 43.4 10.7 38.7 27.0 24.4 22.7 17.5 14.0 6.5 5.4 4.5 0.6 0.9 1.0 18.4 21.9 20.1 49.4

Torrent Pharmaceuticals REDUCE 1,323 1,320 (0.2) 223,854 3,272 169 109.3 61.1 69.9 146.2 (44.1) 14.4 12.1 21.7 18.9 8.4 13.5 11.9 5.2 4.2 3.4 - - - 54.1 21.3 19.8 4.2

Pharmaceuticals Cautious 4,077,270 59,592 18.3 18.5 17.9 29.2 24.6 20.9 18.0 15.1 12.2 5.3 4.5 3.8 0.6 0.8 1.0 18.2 18.2 18.1 126.2

Real Estate

DLF BUY 88 180 103.5 157,727 2,305 1,799 8.3 3.3 3.6 175.1 (59.9) 9.2 10.7 26.6 24.4 14.3 11.4 10.2 0.5 0.5 0.5 2.2 2.2 2.2 5.0 2.0 2.1 21.0

Godrej Properties REDUCE 278 280 0.7 55,455 811 199 13.6 15.7 17.3 42.0 15.7 9.8 20.4 17.7 16.1 15.8 12.0 11.0 2.7 2.4 2.1 0.9 0.9 0.9 13.9 14.4 14.0 1.1

Oberoi Realty BUY 222 345 55.1 75,461 1,103 339 13.3 18.0 43.5 51.0 35.0 141.5 16.7 12.4 5.1 10.5 6.9 2.4 1.4 1.3 1.0 0.9 0.9 0.9 9.1 10.9 22.5 0.7

Prestige Estates Projects BUY 158 250 58.4 59,194 865 375 11.2 14.1 15.8 26.0 26.6 12.0 14.1 11.2 10.0 8.3 6.1 5.8 1.4 1.3 1.1 1.0 1.0 1.0 10.5 12.0 12.1 0.4

Sobha BUY 244 480 96.9 23,903 349 98 16.1 22.6 24.1 (33.8) 40.5 6.9 15.2 10.8 10.1 10.1 8.6 7.4 1.0 0.9 0.9 2.9 2.9 2.9 6.4 8.6 8.7 0.4

Sunteck Realty BUY 192 360 87.4 12,096 177 60 25.6 82.9 53.3 124.9 224.1 (35.6) 7.5 2.3 3.6 7.1 1.8 (0.4) 0.7 0.6 0.5 1.0 1.0 1.0 10.0 26.8 14.2 0.1

Real Estate Attractive 383,835 5,610 77.8 (5.9) 30.7 13.0 13.9 10.6 12.0 8.7 6.9 0.8 0.8 0.8 1.6 1.6 1.6 6.4 5.8 7.1 23.6

Technology

HCL Technologies REDUCE 825 850 3.1 1,162,405 16,989 1,413 54.3 59.6 64.1 5.8 9.7 7.7 15.2 13.8 12.9 10.9 9.3 8.1 3.8 3.2 2.7 1.9 2.2 2.2 27.9 25.0 22.7 17.7

Hexaware Technologies BUY 228 260 14.1 68,742 1,005 304 12.9 15.5 17.8 19.4 19.7 15.0 17.6 14.7 12.8 12.0 10.2 8.5 4.8 4.4 3.8 3.8 3.8 3.8 28.9 31.2 31.9 3.8

Infosys ADD 1,098 1,300 18.4 2,521,701 36,856 2,286 57.8 66.0 75.8 7.2 14.3 14.8 19.0 16.6 14.5 13.1 10.9 9.2 4.3 3.8 3.4 2.0 2.5 2.7 24.4 24.5 24.7 56.0

Mindtree REDUCE 1,390 1,425 2.5 116,616 1,704 84 71.9 82.6 97.9 12.9 14.9 18.5 19.3 16.8 14.2 13.6 11.0 9.2 4.8 4.0 3.4 1.3 1.6 1.9 27.3 26.1 25.9 4.0

Mphasis REDUCE 415 415 (0.0) 87,264 1,275 210 33.8 36.8 38.7 4.7 8.8 5.3 12.3 11.3 10.7 7.2 6.3 5.7 1.5 1.4 1.4 4.1 4.4 4.7 12.6 13.0 13.0 1.5

TCS ADD 2,276 2,525 11.0 4,483,807 65,534 1,970 121.7 136.0 152.8 21.3 11.8 12.4 18.7 16.7 14.9 13.6 11.6 10.1 6.4 5.3 4.5 2.1 2.4 2.7 37.6 34.8 32.8 37.5

Tech Mahindra ADD 430 600 39.7 415,510 6,073 865 34.4 39.9 47.7 14.6 16.0 19.4 12.5 10.8 9.0 8.8 6.9 5.6 2.5 2.1 1.8 1.4 1.4 1.4 22.2 21.6 21.5 12.5

Wipro REDUCE 527 550 4.4 1,301,845 19,027 2,467 36.8 40.1 44.5 5.1 8.7 11.2 14.3 13.2 11.8 9.6 8.3 7.1 2.8 2.5 2.2 2.7 3.0 3.0 20.9 20.1 19.9 10.6

Technology Attractive 10,157,890 148,464 12.7 11.9 12.5 17.3 15.5 13.8 12.2 10.3 8.8 4.4 3.8 3.3 2.1 2.4 2.6 25.6 24.6 23.9 143.5

Telecom

Bharti Airtel BUY 320 385 20.5 1,277,369 18,670 3,997 10.7 13.2 17.7 (29.0) 23.1 34.3 29.8 24.2 18.0 6.4 5.9 5.0 2.0 1.9 1.8 0.8 1.0 1.7 6.8 8.2 10.5 17.9

Bharti Infratel ADD 353 390 10.6 668,765 9,774 1,903 12.1 15.2 17.0 15.1 25.4 11.6 29.1 23.2 20.8 12.1 10.7 9.6 3.9 3.8 3.7 2.5 3.1 3.5 13.4 16.5 18.0 10.1

IDEA BUY 108 175 62.0 388,845 5,683 3,598 7.9 3.0 5.3 (10.3) (61.8) 74.5 13.7 35.8 20.5 6.5 6.0 5.1 1.5 1.5 1.4 0.9 1.4 1.9 11.7 4.2 7.2 8.6

Reliance Communications SELL 50 60 20.5 123,951 1,812 2,488 2.3 2.6 4.1 (20.1) 14.4 57.4 21.8 19.0 12.1 7.6 7.3 6.7 0.4 0.4 0.4 — — — 1.7 1.9 3.0 18.9

Tata Communications ADD 349 450 29.0 99,408 1,453 285 (0.4) 4.3 12.8 (109.9) 1,262.9 195.7 (938.5) 80.7 27.3 7.1 6.2 5.4 31.3 22.5 12.3 1.6 1.9 1.9 (3.3) 32.4 58.3 2.9

Telecom Cautious 2,558,338 37,392 (16.8) 0.5 35.7 25.6 25.5 18.8 7.1 6.5 5.6 1.8 1.8 1.7 1.2 1.5 2.0 7.2 7.0 9.1 58.3

Utilities

Adani Power SELL 28 23 (17.1) 81,470 1,191 3,122 (2.6) 0.8 1.4 42.8 130.5 85.4 (10.9) 35.7 19.2 8.0 7.7 7.4 1.5 1.5 1.4 — — — (14.0) 4.2 7.4 3.6

CESC BUY 432 575 33.1 57,278 837 133 27.0 58.8 76.7 81.3 117.6 30.5 16.0 7.4 5.6 7.4 6.1 5.7 0.7 0.6 0.6 1.9 2.0 2.1 4.3 8.9 10.8 4.3

JSW Energy ADD 65 85 31.2 106,276 1,553 1,640 8.4 9.4 11.0 (0.8) 12.4 16.5 7.7 6.9 5.9 6.2 4.8 4.2 1.2 1.0 0.9 — — — 16.6 15.7 15.6 2.5

NHPC REDUCE 20 20 (0.2) 221,967 3,244 11,071 2.6 2.5 3.4 15.8 (4.3) 35.7 7.6 8.0 5.9 6.0 5.9 4.9 0.7 0.6 0.6 3.6 3.4 4.7 9.2 8.3 10.5 1.4

NTPC BUY 128 160 25.0 1,055,419 15,426 8,245 11.0 12.4 14.8 (6.6) 12.0 19.9 11.6 10.4 8.6 11.4 9.1 7.3 1.2 1.1 1.0 2.8 2.9 3.5 10.7 11.1 12.4 8.3

Power Grid BUY 140 175 25.4 730,330 10,674 5,232 11.7 14.2 15.7 22.3 20.9 10.6 11.9 9.8 8.9 9.4 8.1 6.7 1.7 1.5 1.3 1.7 2.0 2.3 15.2 16.3 15.9 8.0

Reliance Power SELL 44 40 (9.5) 123,987 1,812 2,805 5.0 5.7 7.2 35.2 15.4 26.1 8.9 7.7 6.1 10.1 7.9 6.6 0.6 0.5 0.5 — — — 6.5 7.0 8.2 7.0

Tata Power ADD 59 70 19.3 158,762 2,320 2,800 4.6 5.2 5.7 800.0 11.4 11.1 12.6 11.3 10.2 7.4 6.3 5.8 1.1 1.0 1.0 2.0 2.0 2.0 9.0 9.5 9.9 3.2

Utilities Attractive 2,535,488 37,058 16.1 19.5 19.6 11.6 9.7 8.1 9.0 7.7 6.6 1.1 1.0 1.0 2.1 2.3 2.7 9.7 10.7 11.7 38.3

Others

Astral Poly Technik REDUCE 363 400 10.1 43,511 636 120 7.9 11.8 16.2 23.9 48.8 37.3 45.7 30.8 22.4 21.6 16.2 12.2 6.1 5.1 4.3 0.1 0.1 0.3 14.3 18.2 20.8 0.2

Dhanuka Agritech BUY 530 640 20.9 26,485 387 50 20.8 26.9 33.3 (2.1) 29.4 23.8 25.5 19.7 15.9 18.0 13.8 11.1 5.4 4.5 3.7 0.8 1.1 1.3 23.0 24.9 25.5 0.1

Godrej Industries ADD 317 415 31.0 106,475 1,556 336 17.7 17.9 25.8 47.8 0.9 44.2 17.9 17.7 12.3 16.2 12.7 9.0 2.8 2.5 2.1 0.6 0.6 0.6 17.0 14.9 18.5 1.7

InterGlobe Aviation BUY 840 1,200 42.9 302,627 4,423 351 62.6 77.6 96.0 66.0 23.9 23.8 13.4 10.8 8.7 8.7 6.9 5.4 10.6 7.1 5.0 3.7 4.6 5.7 137.4 80.5 68.7 40.3

Kaveri Seed BUY 343 520 51.7 23,676 346 69 30.8 49.1 62.1 (29.7) 59.6 26.4 11.1 7.0 5.5 8.7 5.0 3.5 2.6 2.1 1.7 2.2 4.3 5.4 25.6 33.5 34.0 8.1

PI Industries ADD 558 670 20.1 76,483 1,118 136 20.7 25.8 32.5 14.7 24.5 26.0 26.9 21.6 17.2 17.8 14.4 11.5 6.7 5.3 4.2 0.5 0.6 0.8 27.7 27.3 27.3 3.4

Rallis India ADD 146 180 23.6 28,315 414 194 6.5 8.7 11.0 (19.9) 34.2 26.5 22.5 16.8 13.2 12.5 9.6 7.6 3.3 2.9 2.6 2.1 2.2 2.3 14.9 18.4 20.7 1.0

Tata Chemicals ADD 333 410 23.3 84,732 1,238 255 27.9 38.2 43.0 (3.5) 37.1 12.5 11.9 8.7 7.7 7.1 5.9 5.1 1.4 1.3 1.2 3.8 3.8 3.8 12.4 15.8 16.1 3.5

UPL ADD 396 510 28.9 169,556 2,478 510 23.1 31.3 37.4 2.1 35.6 19.7 17.1 12.6 10.6 8.1 6.5 5.6 3.0 2.1 1.8 1.1 1.2 1.3 18.7 19.7 18.3 7.7

Whirlpool ADD 598 740 23.8 75,806 1,108 127 19.3 22.7 26.7 16.0 18.0 17.5 31.0 26.3 22.4 18.1 15.5 13.2 6.5 5.5 4.6 - 0.8 0.9 23.5 22.7 22.4 0.6

Others 937,666 13,705 22.6 28.7 23.4 16.3 12.7 10.3 10.0 8.0 6.5 3.8 3.1 2.5 2.0 2.5 2.9 23.5 24.1 24.5 66.7

KIE universe 64,908,113 948,672 (1.8) 21.2 20.1 17.6 14.5 12.1 10.3 8.7 7.3 2.2 2.0 1.8 1.8 2.0 2.3 12.3 13.5 14.7

KIE universe (ex-energy) 57,364,121 838,412 (4.3) 24.9 20.7 19.5 15.6 12.9 11.5 9.5 8.0 2.5 2.2 2.0 1.7 1.9 2.2 12.6 14.3 15.5

Notes:

(a) We have used adjusted book values for banking companies.

(b) 2016 means calendar year 2015, similarly for 2017 and 2018 for these particular companies.

(c) Exchange rate (Rs/US$)= 68.42

Dividend yield (%)Price/BV (X) RoE (%)

Disclo

sure

s

Disclosures

Ratings and other definitions/identifiers

Definitions of ratings

BUY. We expect this stock to deliver more than 15% returns over the next 12 months.

ADD. We expect this stock to deliver 5-15% returns over the next 12 months.

REDUCE. We expect this stock to deliver -5-+5% returns over the next 12 months.

SELL. We expect this stock to deliver <-5% returns over the next 12 months.

Our target prices are also on a 12-month horizon basis.

Other definitions

Coverage view. The coverage view represents each analyst’s overall fundamental outlook on the Sector. The coverage view will consist of one of the following

designations: Attractive, Neutral, Cautious.

Other ratings/identifiers

NR = Not Rated. The investment rating and target price, if any, have been suspended temporarily. Such suspension is in compliance with applicable regulation(s)

and/or Kotak Securities policies in circumstances when Kotak Securities or its affiliates is acting in an advisory capacity in a merger or strategic transaction

involving this company and in certain other circumstances.

CS = Coverage Suspended. Kotak Securities has suspended coverage of this company.

NC = Not Covered. Kotak Securities does not cover this company.

RS = Rating Suspended. Kotak Securities Research has suspended the investment rating and price target, if any, for this stock, because there is not a sufficient

fundamental basis for determining an investment rating or target. The previous investment rating and price target, if any, are no longer in effect for this stock

and should not be relied upon.

NA = Not Available or Not Applicable. The information is not available for display or is not applicable.

NM = Not Meaningful. The information is not meaningful and is therefore excluded.

Kotak Institutional Equities Research coverage universeDistribution of ratings/investment banking relationships

Source: Kotak Institutional Equities As of December 31, 2015

Percentage of companies covered by Kotak Institutional

Equities, within the specified category.

* The above categories are defined as follows: Buy = We

expect this stock to deliver more than 15% returns over the

next 12 months; Add = We expect this stock to deliver 5-15%

returns over the next 12 months; Reduce = We expect this stock

to deliver -5-+5% returns over the next 12 months; Sell = We

expect this stock to deliver less than -5% returns over the next

12 months. Our target prices are also on a 12-month horizon

basis. These ratings are used illustratively to comply with

applicable regulations. As of 31/12/2015 Kotak Institutional

Equities Investment Research had investment ratings on 173

equity securities.

Percentage of companies within each category for which Kotak

Institutional Equities and or its affiliates has provided

investment banking services within the previous 12 months.

32.9% 34.1%

17.9%15.0%

6.4%

2.3% 1.7%0.0%

0%

10%

20%

30%

40%

50%

60%

70%

BUY ADD REDUCE SELL

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[Kotak] India Daily, February 18, 2016 - Kotak Securities