DOMESTIC:

Reliance Industries targets more retail acquisitions abroad

PNB puts up 11 NPA accounts for sale to recover dues of Rs1,234cr

Shilpa Medicare gets two USFDA observations for formulation plant in Telangana

L&T Technology Services wins new electrification project from European automobile OEM

Brookfield, Temasek eye GAIL’s gas pipeline assets

Duracell wins battle of bunnies for Eveready

Avenue Supermarts has issued commercial paper of Rs150cr

NBCC secures business of Rs400cr in the month of August, 2019

Canara Bank seeks bids to sell its 29.99% stake in Can Fin Homes

Vivimed Labs to sell wholly owned arm to Vivimed Specialty Chemicals, UK

Reliance seeks USD5.4 minimum price for new gas from KG-D6

Rana Kapoor in talks with Paytm to sell stake in Yes Bank

Sun Pharma increases its stake in PJSC Biosintez of Russia to 100%

Meghmani Organics' subsidiary, MFL to set up project of Epichlorohydrin for Rs275cr

Glenmark receives ANDA approval for Clobetasol Propionate Foam, 0.05%

HCL Technologies to acquire Sankalp Semiconductor

TCS partners with Cisco to build solutions that accelerate digital transformation

SML Isuzu launches BH Series School Bus

Premier Explosives receives order from Vikram Sarabhai Space Centre for production of PSOM-XL segments for their satellite launch vehicles

IL&FS gets 14 bids worth Rs13,000cr for 10 domestic road assets

Strides acquires strategic stake in Fairmed Healthcare AG in Europe

Generic Engineering Construction and Projects bags order worth Rs298.88cr

Dr Reddy’s launches generic version of Emend

Cyient signs pact with UK defence firm QinetiQ Target Systems

Tata Motors' Global Sales Drop 32% in August

Dr Reddy's Lab gets EIR from USFDA for Vizag units

Biocon enters into pact with CMS to sell 3 generic products in China

PI Industries to buy entire stake in Isagro Asia for Rs345cr

POWERGRID signed MoU with BHEL

ECONOMY:

Indian economic growth much weaker than expected: IMF

INDUSTRY:

Auto component companies put USD2bn investments on hold

Auto sector hopes of GST rate cut, scrappage policy

Tough times for cement; low demand to squeeze volume growth

The week that went by:

The markets opened the week on a negative note with the Nifty being below 10,900 mark. Following the Asian peers, the markets opened on a steady note well above the 11,000 mark. The broader market continued to outperform frontline index. The last trading day of the week opened flat with a negative bias with the broader markets extending its streak out performance.

Price Performance

Company 1M 3M 12M

Supreme Petrochem Ltd -4.7% -10.2% -27.7%

Shanthi Gears Ltd -6.5% -23.5% -30.0%

Hind Rectifiers Ltd -0.6% 1.3% -0.8%

KCP Ltd 4.2% -13.6% -18.2%

Hester Biosciences Ltd 2.9% -10.6% 34.8%

The Hi-Tech Gears Ltd 3.8% -35.2% -60.5%

Bharat Bijlee Ltd 0.7% -20.0% -35.1%

Triveni Turbines Ltd -4.9% -10.1% -17.7%

Siemens Ltd 9.1% -2.7% 30.1%

GMM Pfaudler Ltd 14.4% 0.6% 31.1%

Alicon Castalloy Ltd -4.2% -33.9% -44.5%

Gufic Biosciences Ltd 29.4% -15.3% -44.7%

Excel Industries Ltd 18.7% -11.0% -50.9%

Vesuvius India Ltd -0.5% -18.26% -22.5%

Munjal Showa Ltd -2.2% -13.2% -40.3%

Bharat Rasayan Ltd 26.0% 26.7% -32.4%

Alkyl Amines Chemicals Ltd 2.1% -2.2% 27.0%

Grauer and Weil (India) Ltd 1.6% -7.0% -12.4%

Texmaco Rail & Engineering Ltd 1.3% -27.3% -33.7%

Nagarjuna Agrichem Ltd 4.2% -13.3% -16.9%

ITD Cementation India Ltd -0.9% -36.7% -45.4%

Westlife Development Ltd 1.1% -12.4% -26.0%

Federal Mogul Goetze (India) Ltd 15.6% 6.6% 29.8%

Dynamatic Technologies Ltd 2.6% -10.5% -26.4%

Hitech Corporation Ltd -47.8% -10.9% -30.5%

NRB Bearings Ltd 28.3% -37.8% -40.3%

Kokuyo Camlin Ltd 7.0% -9.0% -48.7%

Timken India Ltd 0.1% 1.5% 4.9%

Morganite Crucible (India) Ltd 15.9% 27.9% -23.3%

Vardhman Special Steels Ltd -1.6% -13.7% -38.3%

Zen Technologies Ltd 8.7% -16.6% -20.7%

KSB Ltd -1.9% -17.3% -20.3%

Thermax Ltd -1.9% -6.3% 5.5%

Transpek Industry Ltd 4.6% -17.1% -20.2%

BASF India Ltd 1.3% -26.7% -46.8%

Artson Engineering Ltd -1.6% -18.2% -46.5%

Remsons Industries Ltd 4.8% -10.2% -34.3%

Snowman Logistics Ltd 0.8% -10.7% -23.6%

Alembic Pharmaceuticals Ltd -4.6% 0.8% -22.05%

SKF India Ltd 2.2% -2.4% 6.4%

HFCL Ltd 4.8% -6.2% -15.8%

Sudarshan Chemical Industries Ltd 3.5% 2.4% -22.2%

Huhtamaki PPL Ltd -1.8% -19.7% -18.1%

Mishra Dhatu Nigam Ltd 9.1% -1.0% -5.6%

Anuh Pharma Ltd 22.3% 18.8% -8.7%

Indian Hume Pipe Co. Ltd 7.6% 2.1% 101.5%

Engineers India Ltd 9.5% -3.5% 71.3%

Gulshan Polyols Ltd 38.0% 4.3% -21.5%

Nesco Ltd 0.7% -4.3% 8.8%

Castrol India Ltd 13.3% -9.0% 67.9%

Hikal Ltd 3.6% -6.2% 21.7%

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13 Sept 2019

Page No: 1

Recommendations adjusted as per Corporate Actions

Company Reco Target Corp Action Adj Price Adj Tgt Price Appreciation

IHP Ltd 341 600 Bonus 1 : 1 171 500 64%

Engineers India Ltd 211 200 Bonus 1 : 1 105 200 8%

Gulshan Polyols Ltd 390 500 Stock Split from Rs.FV 5 to Rs.FV 1 110 78 -37%

Nesco Ltd 2397 3200 Stock Split from Rs.FV 10 to Rs.FV 2 479 640 11%

Castrol India Ltd 447 550 Bonus 1 : 1 223 200 -41%

Hikal Ltd 143 325 Bonus 1 : 2 95 216 62%

Coverage Universe Valuations

Company Reco Adj Reco CMP Tgt price Upside Mcap EPS(x) PE(x) EV/EBITDA (x)

(Rs) (Rs) (Rs) (%) (Rs bn) FY18 FY19 FY18 FY19 FY18 FY19

IHP Ltd 341 171 280 500 78.7 13.6 13.6 20.1 20.5 13.9 11.1 8.6

Engineers India Ltd 211 105 113 200 77.0 38.1 6.0 7.0 18.9 16.2 17.2 13.7

Gulshan Polyols Ltd 390 78 49 78 59.2 2.3 3.9 5.1 2.3 1.8 2.7 2.2

Nesco Ltd 2397 479 531 640 20.5 7.5 25.1 23.7 21.2 22.4 17.3 18.0

Castrol India Ltd 447 223 131 200 52.7 64.8 7.1 15.6 18.5 8.4 12.2 11.0

Hikal Ltd 143 95 154 216 40.2 12.7 9.4 10.1 16.4 15.3 10.1 9.1

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13 Sept 2019

Page No: 2

Coverage Universe Valuations

Company Reco Reco at CMP Tgt price Upside Mcap EPS(x) PE(x) EV/EBITDA (x)

(Rs) (Rs) (Rs) (%) (Rs bn) FY18 FY19 FY18 FY19 FY18 FY19

Supreme Petrochem Ltd BUY 77 181 275 52.1 17.4 6.6 6.4 27.3 28.3 8.3 10.1

Shanthi Gears Ltd BUY 107 90 150 66.7 7.4 3.5 3.9 25.7 23.1 19.9 16.9

Hind Rectifiers Ltd BUY 69 132 175 32.6 2.0 0.8 5.3 167.4 24.9 27.2 13.5

KCP Limited BUY 71 75 125 66.6 9.7 7.0 7.0 10.8 10.7 8.5 7.5

Hester Biosciences Ltd BUY 566 1698 2250 32.5 14.4 35.9 39.8 47.3 42.7 13.9 12.5

The Hitech Gears Ltd BUY 298 175 450 157.1 3.3 17.0 21.2 10.3 8.2 7.1 6.2

Bharat Bijlee Ltd BUY 787 900 1500 66.7 5.1 25.1 37.4 35.8 24.1 21.6 18.0

Triveni Turbines Ltd BUY 92 98 150 53.1 0.3 3.0 3.1 32.9 31.4 20.6 19.7

Siemens Ltd BUY 1128 1245 1500 20.4 443.4 53.0 53.6 23.5 23.2 31.8 31.3

GMM Pfaudler Ltd BUY 332 1467 1600 9.0 21.4 19.4 26.7 75.6 55.0 46.2 33.8

Alicon Castalloy Ltd BUY 288 389 650 67.1 4.8 29.0 46.6 13.4 8.3 7.0 5.1

Gufic Biosciences Ltd BUY 50 69 120 74.9 5.3 1.9 3.1 36.8 22.0 15.8 12.4

Excel Industries Ltd BUY 380 892 1200 34.5 11.5 58.1 112.2 15.3 8.0 9.1 4.9

Vesuvius India Ltd BUY 1165 923 1500 62.6 18.5 52.3 56.3 17.6 16.4 8.5 8.2

Munjal Showa Ltd BUY 191 131 191 45.5 5.3 19.4 21.5 6.8 6.1 4.5 4.0

Bharat Rasayan Ltd BUY 2747 5172 6500 25.7 21.7 227.3 257.5 22.8 20.1 14.7 12.8

Alkyl Amines Chemicals Ltd BUY 391 789 1000 26.7 16.1 31.5 38.9 25.0 20.3 15.1 11.5

Grauer and Weil (India) Ltd BUY 45 50 65 30.5 11.3 2.7 3.0 18.6 16.8 11.7 11.0

Texmaco Rail & Engineering Ltd BUY 91 50 91 81.1 20.2 0.5 1.8 109.6 27.7 51.2 15.1

Nagarjuna Agrichem Ltd BUY 29 27 45 66.7 4.2 0.7 0.8 39.4 34.2 13.0 12.3

ITD Cementation India Ltd BUY 158 71 130 83.5 11.0 8.3 9.8 8.5 7.2 5.2 4.6

Westlife Development Ltd BUY 266 282 450 59.6 43.9 0.8 1.6 339.9 177.7 58.9 41.4

Federal Mogul Goetze (India) Ltd BUY 540 571 750 31.3 31.8 14.9 18.0 38.3 31.7 16.9 15.5

Dynamatic Technologies Ltd BUY 2160 1280 2160 68.7 8.1 1.1 51.1 1127.6 25.1 10.7 8.2

Hitech Corporation Ltd BUY 175 82 125 52.4 1.4 4.5 6.4 18.1 12.9 7.9 6.0

NRB Bearings Ltd BUY 138 101 138 36.6 9.8 8.5 10.4 12.0 9.7 7.5 6.3

Kokuyo Camlin Ltd BUY 132 73 132 80.0 7.4 1.0 1.5 74.9 49.9 22.7 18.1

Timken India Ltd BUY 883 686 1000 45.8 46.7 13.5 19.0 50.7 36.1 28.5 18.2

Morganite Crucible (India) Ltd BUY 1047 1650 2000 21.2 4.6 49.6 63.9 33.3 25.8 3.5 3.2

Vardhman Special Steels Ltd BUY 151 79 110 40.1 2.8 7.0 8.7 11.2 9.0 8.0 6.7

Zen Technologies Ltd BUY 115 63 125 100.0 4.8 -0.1 0.8 -1239.7 77.6 -255.1 46.4

KSB Ltd BUY 820 600 1100 83.4 20.9 18.8 21.2 37.0 32.8 15.5 13.8

Thermax Ltd BUY 1019 1040 1230 18 123.9 22.1 26.8 47.1 38.8 33.4 28.6

Transpek Industry Ltd BUY 1547 1250 2000 60.0 7.0 47.3 76.0 26.4 16.4 16.7 12.5

BASF India Ltd BUY 1954 1019 1700 66.8 44.1 20.3 43.5 50.2 23.4 15.7 12.4

Artson Engineering Ltd BUY 64 34 75 120.9 1.3 0.4 2.3 90.6 14.8 55.7 17.0

Remsons Industries Ltd BUY 104 85 130 52.2 0.5 6.0 7.9 14.2 10.8 9.4 7.4

Snowman Logistics Ltd BUY 33 30 55 81.2 5.1 -0.2 0.1 -142.4 210.9 14.3 11.7

Alembic Pharmaceuticals Ltd BUY 605 505 751 48.7 95.2 22.3 26.7 22.6 18.9 15.8 13.4

SKF India Ltd BUY 1942 1889 2620 38.7 97.0 57.6 60.7 32.8 31.1 22.2 20.7

HFCL Ltd BUY 25 20 35 78.1 24.5 1.3 1.7 15.5 11.7 10.3 7.4

Sudarshan Chemical Industries Ltd BUY 372 338 500 47.9 25.8 12.4 13.8 27.3 24.5 13.3 11.9

Huhtamaki PPL Ltd BUY 254 225 320 42.3 17.0 4.6 11.2 48.7 20.1 9.3 7.3

Mishra Dhatu Nigam Ltd BUY 123 130 160 22.9 23.0 6.7 7.0 19.5 18.7 12.8 13.1

Anuh Pharma Ltd BUY 142 157 175 11.5 3.9 6.6 9.3 23.8 16.8 21.9 13.2

*Castrol, Vesuvius – Dec Ending | Siemens—Sept ending|

Recommendations adjusted as per Corporate Actions

Company Reco Target Corp Action Adj Price Adj Tgt Price Appreciation

IHP Ltd 341 600 Bonus 1 : 1 171 500 64%

Engineers India Ltd 211 325 Bonus 1 : 1 105 200 8%

Gulshan Polyols Ltd 390 500 Stock Split from Rs.FV 5 to Rs.FV 1 110 78 -37%

Nesco Ltd 2397 3200 Stock Split from Rs.FV 10 to Rs.FV 2 479 640 11%

Castrol India Ltd 447 550 Bonus 1 : 1 223 200 -41%

Hikal Ltd 143 325 Bonus 1 : 2 95 216 62%

*Castrol, Vesuvius – Dec Ending | Siemens—Sept ending| * T= Target

Coverage Performance Sheet

Company Reco at CLS Target Price (Rs) Appreciation

(Rs) (Rs) T1 T2 T3 T4 T5 T6 T7 T8 T9

IHP Ltd 341 280 500 600 500 - - - - 64% - -

Engineers India Ltd 211 113 200 250 200 - - - - 8% - -

Gulshan Polyols Ltd 390 49 110 78 - - - - - -37% - -

Nesco Ltd 2397 531 640 - - - - - - 11%

Castrol India Ltd 223 131 275 250 200 - - - - -41% - -

Hikal Ltd 143 154 200 250 325 216 - - - 62% - -

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13 Sept 2019

Page No: 3

Coverage Performance Sheet

Company Reco at CLS Target Price (Rs) Appreciation

(Rs) (Rs) T1 T2 T3 T4 T5 T6 T7 T8 T9

Supreme Petrochem Ltd 77 181 120 150 200 275 350 500 275 - - 135%

Shanthi Gears Ltd 107 90 150 200 150 - - - - - - -16%

Hind Rectifiers Ltd 69 132 110 140 175 - - - - - - 91%

KCP Limited 71 75 105 150 200 150 125 - - - - 6%

Hester Biosciences Ltd 566 1698 750 875 1150 1500 2200 1750 2250 - - 200%

The Hitech Gears Ltd 298 175 450 600 500 450 - - - - - -41%

Bharat Bijlee Ltd 787 900 1100 1500 2000 1500 - - - - - 14%

Triveni Turbines Ltd 92 98 135 150 - - - - - - - 6%

Siemens Ltd 1128 1245 1500 1350 1500 - - - - - - 10%

GMM Pfaudler Ltd 332 1467 500 700 800 1000 1300 1600 - - - 342%

Alicon Castalloy Ltd 288 389 450 600 750 1000 850 650 - - - 35%

Gufic Biosciences Ltd 50 69 75 100 140 175 150 120 - - - 37%

Excel Industries Ltd 380 892 550 650 800 1100 1400 1800 2200 1800 1200 135%

Vesuvius India Ltd 1165 923 1500 - - - - - - - - -21%

Munjal Showa Ltd 191 131 250 300 350 300 250 191 - - - -31%

Bharat Rasayan Ltd 2747 5172 3500 4250 5000 6500 9000 5000 6500 - - 88%

Alkyl Amines Chemicals Ltd 391 789 550 700 850 1000 - - - - - 102%

Grauer and Weil (India) Ltd 45 50 65 80 100 65 - - - - - 11%

Texmaco Rail & Engineering Ltd 91 50 125 150 91 - - - - - - -45%

Nagarjuna Agrichem Ltd 29 27 45 60 75 60 45 - - - - -7%

ITD Cementation India Ltd 158 71 225 180 130 - - - - - - -55%

Westlife Development Ltd 266 282 350 425 525 450 - - - - - 6%

Federal Mogul Goetze (India) Ltd 540 571 750 - - - - - - - - 6%

Dynamatic Technologies Ltd 2160 1280 3000 2750 2160 - - - - - - -41%

Hitech Corporation Ltd 175 82 230 180 150 125 - - - - - -53%

NRB Bearings Ltd 138 101 200 240 138 - - - - - - -27%

Kokuyo Camlin Ltd 132 73 175 132 - - - - - - - -44%

Timken India Ltd 883 686 1200 1000 - - - - - - - -22%

Morganite Crucible (India) Ltd 1047 1650 1500 1750 2300 2000 - - - - - 58%

Vardhman Special Steels Ltd 151 79 225 140 110 - - - - - - -48%

Zen Technologies Ltd 115 63 170 125 - - - - - - - -46%

KSB Ltd 820 600 1100 - - - - - - - - -27%

Thermax Ltd 1019 1040 1230 - - - - - - - - 2%

Transpek Industry Ltd 1547 1250 2000 - - - - - - - - -19%

BASF India Ltd 1954 1019 2500 2000 1700 - - - - - - -48%

Artson Engineering Ltd 64 34 95 75 - - - - - - - -47%

Remsons Industries Ltd 104 85 155 130 - - - - - - - -18%

Snowman Logistics Ltd 33 30 55 - - - - - - - - -8%

Alembic Pharmaceuticals Ltd 605 505 751 - - - - - - - - -17%

SKF India Ltd 1942 1889 2620 - - - - - - - - -3%

HFCL Ltd 25 20 35 - - - - - - - -21%

Sudarshan Chemical Industries Ltd 372 338 500 - - - - - - - - -9%

Huhtamaki PPL Ltd 254 225 320 - - - - - - - -11%

Mishra Dhatu Nigam Ltd 123 130 160 - - - - - - - - 6%

Anuh Pharma Ltd 142 157 175 - - - - - - - 11%

TERM OF THE WEEK: Price Risk: Price risk is the risk of a decline in the value of a security or an investment portfolio. Unlike other types of risk, price risk can be reduced. The most common mitigation technique is diversification. Investors can employ a number of tools and techniques to hedge price risk, ranging from relatively conservative decisions (e.g., buying put options) to more aggressive strategies (e.g., short selling). Common factors contributing to price risk include earnings volatility, poor management, and price changes.

COVERAGE NEWS:

Fundamental Pick of the month: Anuh Pharma Ltd: Anuh Pharma Limited (APL), a part of the SK Group of companies (across businesses such as manufacturing of Pharma formulations, trading, distribution and logistics; primarily for large MNC brands), is one of the largest manufacturers of Macrolides and Anti-TB products in India, besides being a major player in Anti-Bacterial, Anti-Malarial, and Corticosteroids. It is engaged in manufacturing of bulk drugs such as, Erythromycin and its salts, higher macrolides like Azithromycin, Roxithromycin, Pyrazinamide and Chloramphenicol. The company has Mr. Bipin Shah as its Managing Director. The company has EU GMP/ WHO pre-qualified approved manufacturing facility at Tarapur, Boisar and an R&D facility at Mahape. Outlook and Recommendations: APL has an established track record in API manufacturing, with a healthy market share in its key products and a diversified base of domestic and export customers. In the current scenario of the Indian Pharma industry where most of the other companies are bearing the brunt from the USFDA, APL is safely placed with limited exposure to the US markets. Although going forward the company is inclined to increase its revenue share from the regulated markets, it is taking steps slowly but accurately towards it. The company also derives strength from the continued strong financial profile with negligible dependence on debt and robust debt protection metrics. Overall we feel that the company would be a safe bet in the Pharma domain. We expect the company to be a slow compounder and volunteers as a sipping candidate for a target of Rs175 over a 12 months horizon.

Indian Hume Pipe receives Letter of Intent for the work of Rs133.08cr The company has received Letter of Intent for the work of Rs133.08cr (excluding GST) for Gowardhan Project, Maharashtra from Vidarbha Irrigation Development Corporation, Nagpur. Our comments: The project is to be completed within 18 months. The agreement will be signed in due course.

Federal Mogul Goetze (India) Limited: The company has indicated that the workers union at Bangalore have initiated a tool down. The plant is still running through non-unionized workers. The management has been considering taking appropriate steps to handle the situation. ITD Cementation India Limited: The company wins order valued over Rs1100cr from Central Public Works Dept., Government of India, Redevelopment Project Division-1, Kasturba Nagar, New Delhi

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Weekly Sectoral Gainers & Losers in (%)

13 Sept 2019

Pick Of The Month

Page No: 4

LOI For IHP

Corporate Announcement Of Federal

Orders For ITD

ECONOMY:

Indian economic growth much weaker than expected: IMF IMF is of the view that India's economic growth is much weaker than expected, attributing the reasons for corporate and environmental regulatory uncertainty and lingering weaknesses in some NBFCs. The IMF in July projected a slower growth rate for India in 2019 and 2020, a downward revision of 0.3% for both the years, stating its GDP would now grow respectively at the rate of 7% and 7.2% reflecting a weaker-than-expected outlook for domestic demand. According to IMF officials, even though there would be fresh set of numbers coming up but the recent economic growth in India is much weaker than expected. The risks to the outlook are tilted to the downside. Our comments: India will still be the fastest-growing major economy of the world and much ahead of China. INDUSTRY:

Govt to announce scrappage policy shortly: Nitin Gadkari The Indian Auto industry has been witnessing a prolonged fall in its sales, being it the worst in many years. Vehicle sales are down and inventories are bloated, forcing a cut in production, putting thousands of jobs on the line. As per the Road transport and highways Minister, the government is working on a vehicle scrapping policy and would be announced shortly after receiving a clearance from the Finance Ministry. The Road Minister is of the opinion that apart from scrappage centres for commercial vehicles and passenger cars, industry stakeholders should also look at setting up such units for dismantling old 2Ws. The matter of slashing GST rates on vehicles with the FM. Our comments: Automobile sales in the country recorded their steepest fall in nearly two decades last month, down 23.5% y-o-y to 1.8mn units. The industry has been urging the government to reduce GST on automobiles to 18% from the current 28% to boost demand. Tough times for cement; low demand to squeeze volume growth Many experts believe that cement sector, as a whole, is now staring at an approaching gloom. Most cement companies witnessed higher margins during Q1FY20 owing to a strong pricing growth of more than 10%. As per many market reports, the industry volume may have declined during July and August due to heavy rains and slowdown in government spending. Erosion in volume growth will put pressure on margin. Most companies are contemplating a price hike to offset the impact of declining volume. However, the next few quarters should see the industry benefit from easing fuel costs, which should partially cushion the impact of lower prices. Reports suggest that companies with significant exposure to the South and East are expected to witness 6-7% q-o-q decline in realisation, while the overall industry should witness 3-4% q-o-q decline in realisation. Our comments: Price hike and low fuel cost are likely to cushion cement companies, but the fall in demand is a bigger challenge for them. COMPANY:

Duracell wins battle of bunnies for Eveready Berkshire Hathaway owned, Duracell Inc. is set to buy Eveready Industries’ battery and flashlight business in a slump sale for Rs1,600-1,700cr. The all-cash deal is in the final stage of negotiations and includes manufacturing plants, distribution network and the Eveready brand. Duracell’s proposed offer for acquisition of the battery and flashlights business excludes Eveready Industries’ lighting, electrical appliances, confectionery and an FMCG JV that clocked a cumulative turnover of Rs500-600cr. If the deal gets confirmed, the company would become debt free; its total loan outstanding from lending institutions like UCO Bank, HDFC, ICICI, RBL, Indusind among others of Rs700cr would get wiped out. Although the low growth, profitable business being sold, the company would save ~Rs60-70cr interest cost on an annual basis. Our comments: Eveready Industries would continue to leverage the company’s brand as well as the distribution network for its lighting and appliances business on a royalty free basis.

Weaker Economic Growth

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Scrappage Policy Likely To Be Announced

13 Sept 2019

Lower Demand Impacts Cement Industry

Page No: 5

Eveready On Sale

COMPANY:

Strides acquires strategic stake in Fairmed Healthcare AG in Europe Strides Pharma Science Limited announced that its step down subsidiary Strides Pharma Global Pte Ltd (SPG) has acquired a majority stake in Fairmed Healthcare AG, with a portfolio of high quality generic products encompassing prescription and OTC drugs across several therapeutic segments. Fairmed has built a strong franchise of supplying high quality Rx and OTC products in key European markets and the acquisition would augment Strides’ footprint in continental Europe with a direct presence in the German markets, Austria and Switzerland collectively called as DACH region. Strides’ vast international product portfolio and Fairmed’s market access in the DACH region is a highly complementary combination to pivot an extensive growth in the coming years. Our comments: Under the terms of the agreement, SPG will hold 70% of the issued capital of Fairmed. Strides has infused CHF2.2mn into the entity in lieu of the equity stake. ONGC to invest Rs13,000cr in Assam in next five years According to a PTI report, ONGC has signed a MoU with the Assam government for boosting its exploration and production activities in the state. The company will make investment for drilling more than 220 oil and gas wells across the state. ONGC had produced 0.797mn metric tonnes of oil and 407.4mn metric standard cubic meters of gas from its operations in the state during the 2018-19 fiscal. The company has already pumped in about Rs1,50,000cr during the last five years in exploration and production, while 10 projects worth Rs13,000cr were completed in 2018-19. In this period, it completed six pipeline projects in Assam at an investment of Rs152.3cr. Our comments: The company is giving impetus to its activities in alignment with the prime minister's call for reducing import by 10% by 2022 and Northeast Hydrocarbon Vision 2030. POWERGRID signed MoU with Bharat Heavy Electricals Limited POWERGRID signed a MoU with BHEL for Digital Substation Collaborative Research and Development Project. As part of this MoA, Intelligent Electronic Devices (IEDs) and Optical Current Transformers (OCTs) will be developed which will be validated at POWERGRID Advanced Research & Technology Centre, Manesar and further field trials will be carried out at Bhiwadi 400/220kV sub-station of POWERGRID. This will enable development of indigenous devices for digital sub-stations. Our comments: This MoU will results in synergy gains for both the respective parties. Dr Reddy’s launches generic version of Emend Dr Reddy’s Laboratories Ltd has launched Fosaprepitant for Injection, the therapeutic generic equivalent of Emend (Fosaprepitant) for injection, approved by the USFDA. The Emend injection brand had US sales of approximately USD279mn for the most recent twelve months ending in July 2019 according to IQVIA Health. Fosaprepitant for Injection is available in 150mg single dose vial for reconstitution. According to the management, this is an addition to the company’s injectable portfolio in the US market as they continue to augment its product offering and drive growth for the hospital segment. Our comments: This will help the company further establish itself in the hospital segment.

Strides Acquisition

13 Sept 2019

ONGCs Investment

Page No: 6

PowerGrid-BHEL MoU

DRL’s Generic Launch

DISCLAIMERS AND DISCLOSURES- Progressive Share Brokers Pvt. Ltd. and its affiliates are a full-service, brokerage and financing group. Progressive Share Brokers Pvt. Ltd. (PSBPL) along with its affiliates are participants in virtually all securities trading markets in India. PSBPL started its operation on the National Stock Exchange (NSE) in 1996. PSBPL is a corporate trading member of Bombay Stock Exchange Limited (BSE), National Stock Exchange of India Limited (NSE) for its stock broking services and is Depository Participant with Central Depository Services Limited (CDSL) and is a member of Association of Mutual Funds of India (AMFI) for distribution of financial products. PSBPL is SEBI registered Research Analyst under SEBI (Research Analysts) Regulations, 2014 with SEBI Registration No. INH000000859. PSBPL hereby declares that it has not defaulted with any stock exchange nor its activities were suspended by any stock exchange with whom it is registered in last five years. PSBPL has not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has its certificate of registration been cancelled by SEBI at any point of time. PSBPL offers research services to clients as well as prospects. The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report. Other disclosures by Progressive Share Brokers Pvt. Ltd. (Research Entity) and its Research Analyst under SEBI (Research Analyst) Regulations, 2014 with reference to the subject company (s) covered in this report-: · PSBPL or its associates financial interest in the subject company: NO · Research Analyst (s) or his/her relative's financial interest in the subject company: NO · PSBPL or its associates and Research Analyst or his/her relative's does not have any material conflict of interest in the subject company. The research Analyst or research entity (PSBPL) has not been engaged in market making activity for the subject company. · PSBPL or its associates actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research Report: NO · Research Analyst or his/her relatives have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research Report: NO · PSBPL or its associates may have received any compensation including for brokerage services from the subject company in the past 12 months. PSBPL or its associates may have received compensation for products or services other than brokerage services from the subject company in the past 12 months. PSBPL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report. Subject Company may have been client of PSBPL or its associates during twelve months preceding the date of distribution of the research report and PSBPL may have co-managed public offering of securities for the subject company in the past twelve months. · The research Analyst has served as officer, director or employee of the subject company: NO PSBPL and/or its affiliates may seek investment banking or other business from the company or companies that are the subject of this material. Our sales people, traders, and other professionals may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses (if any) may make investment decisions that may be inconsistent with the recommendations expressed herein. 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Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. PSBPL will not treat recipients as customers by virtue of their receiving this report.

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