Equities Bajaj Auto India Research - Business...

Automobiles October 22, 2012

Bajaj Auto

Bloomberg: BJAUT INReuters: BAJA.BO HOLD

Institutional Equities

India Research

QUARTERLY REVIEW

Recommendation

CMP: Rs1,772

Target Price: Rs1,925

Upside (%) 9%

Stock Information Market Cap. (Rs bn / US$ mn) 516/9,638

52‐week High/Low (Rs) 1,850/1,407

3m ADV (Rs mn /US$ mn) 741/13.8

Beta 0.9

Sensex/ Nifty 18,793/5,717

Share outstanding (mn) 289

Stock Performance (%) 1M 3M 12M YTD

Absolute (1) 12.0 8.6 12.0

Rel. to Sensex (1.2) 2.2 (3) (7.9)

Performance

Source: Bloomberg

Earnings Revision

(%) FY13E FY14E

Revenue 1.4 1.8

EBITDA 0 0

PAT 0 0

Source: Karvy Institutional Research

Analysts Contact Mitul Shah

+91 22 6184 4312

[email protected]

1,150

1,350

1,550

1,750

1,950

15,500

17,500

19,500

Aug‐11

Oct‐11

Nov‐11

Dec‐11

Feb‐12

Mar‐12

Apr‐12

May‐12

Jul‐12

Aug‐12

Sensex (LHS) Bajaj Auto (RHS)

Rising Volume & Better Realisation in

Overseas Markets to Drive Profitability

The performance of Bajaj Auto (BAL) was ahead of our expectation on the

revenues as well as margins front. Its revenues declined 4.1% YoY to Rs. 49.7

bn vs. our estimate of Rs. 49 bn, due to fall in volume by 9.9% YoY to 1.049

mn units. Improvement in Sri Lanka export and higher three‐wheeler

contribution led to sequential rise in margin. Its EBIDTA margins rose 50 bps

QoQ to 18.4% (vs. our estimate of 17.9%) in Q2FY13. Its domestic volumes

declined 11% YoY owing to industry‐wide slowdown in 2‐wheelers, while

exports declined 8% YoY in Q2FY13. Its NPM rose 13 bps QoQ (down 34 bps

YoY) to 14.9%, as its interest outflow declined 99% YoY (450% QoQ) to Rs. 2

mn in Q2FY13. It reported an EPS of Rs. 25.6 (down 6.4% YoY but up 3.2%

QoQ) in Q2FY13.

Strong Exports with Favourable Exchange Rate – Better Profitability: BAL’s

strong exports provide the Company with a good hedge against domestic

slowdown. The shortfall from Sri Lanka will be adequately compensated by

growth in other markets of Africa, Bangladesh, and Egypt, which are

relatively less susceptible to global slowdown. Moreover, favourable

currency movement, increasing exports geographies and hedging at higher

exchange rate would boost profit in FY14.

Stable Margin, Healthy Return Ratio & Strong Cash Flow: BAL’s operating

margin is the highest in the industry. Moreover, its RoE & RoCE range

between 40 ‐ 50% while it has Cash & Cash Equivalent of over Rs. 45 bn (as of

H2FY13) on its balance‐sheet. The Company generates ~ Rs. 30‐32 bn cash

every year, with extremely low capex of ~Rs. 3‐4 bn per annum.

Outlook & Valuation We maintain our FY13 & FY14 EPS estimate at Rs. 108 & Rs. 132.7

respectively. The stock currently trades at a P/E of 13.3xFY14E, as against its

historical average of 12.6x 1‐year forward P/E. We expect stock’s multiple to

expand and converge with that of Hero MotoCorp. Valuing the Bajaj Auto at

14.5xFY14 EPS, we reiterate our “HOLD” recommendation on stock with a

target price of Rs. 1,925 per share.

Key Financials

Y/E Mar (Rs. mn) FY10 FY11 FY12 FY13E FY14E

Net Sales 118,966 165,768 197,696 210,800 256,973

EBITDA 25,984 33,808 38,441 38,333 48,221

Net Profit 18,339 27,998 30,099 31,112 38,405

EPS (Rs.) 63.4 96.8 104.0 107.5 132.7

PER (x) 28.0 18.3 17.0 16.5 13.3

P/BV 17.5 10.4 8.5 6.7 5.1

EV/ EBITDA 20.2 15.2 13.0 13.1 10.5

ROCE (%) 44.8 51.5 46.1 39.4 39.1

ROE (%) 69.3 61.0 48.3 41.0 40.2

Source: Company, Karvy Institutional Research

2

October 22, 2012

Bajaj Auto

Results Review

Revenue Analysis BAL’s revenues declined 4.1% YoY (up 2.2% QoQ) to Rs. 49.7 bn in Q2FY13, as

against our estimate of Rs. 49 bn, as vehicle price hike & better product mix

resulted in 7% YoY rise average realization per vehicle. Moreover, its export

realization at an exchange rate of ~ Rs. 48.8/$ in Q2FY13 vs. Rs. 47/$ in Q2FY12 also

aided BAL on revenue front. However, due to its hedging policy, BAL couldn’t

take the full advantage of INR depreciation in Q2FY13. Its export revenue fell 4%

YoY, while export volume declined 8% YoY in Q2FY13.

EBIDTA Margin BAL’s EBITDA declined 6.2% YoY (up 5% QoQ) to Rs. 9.1 bn in Q2FY13. Its

EBIDTA margins rose 50 bps QoQ (down 40 bps YoY) to 18.4% vs. our estimate of

17.9%. The raw material cost as a percentage of sales declined 80 bps YoY (33 bps

QoQ) to 71.8% in Q2FY13. Higher contribution of three‐wheelers also benefitted

BAL on margin front as well.

Net Profit Growth BAL has posted Rs. 7.4 bn net profit in Q2FY13, up 25 YoY & 3% QoQ. However,

its reported profit was lower by 6.3% YoY to adjusted Q2FY12 profit (It had an

MTM forex loss of Rs. 954 mn in Q2FY12). Its NPM stood at 14.9%, while EPS

stood at Rs. 25.6 in Q2FY13.

Volumes & Market Share In Q2FY13, BAL recorded total volume of 1,049,208 units, down 9.9% YoY. Its

domestic motorcycle volumes decreased 12% YoY to 601,876 units vs. industry

decline of 8.1% YoY due to shift of festival season to Q3FY13 this time. Its exports

declined 8% YoY to 390,285 units due to low volumes in Sri Lanka. Its motorcycles

exports fell 4.7% YoY to 326,648 units, while three‐wheeler exports declined 22%

YoY to 63,637 units in Q2FY13. Its domestic three‐wheeler sales rose marginally by

3% YoY to 57,047 units, while industry volumes were flat during the quarter.

The Company lost some market share in the domestic motorcycle segment in

Q2FY13, while gained in three‐wheeler segment. Its market share in domestic

motorcycles segment declined 116 bps YoY to 25.7% in Q2FY13. BAL’s domestic

market share in three‐wheeler space rose 107 bps YoY to 41% in Q2FY13.

3

October 22, 2012

Bajaj Auto

Key Takeaways of Conference Call:

Shift in festival season to Q3FY13 impacted YoY volume in Q2FY13, while

Company expects 30% sequential rise in domestic volume in coming months.

On exports front, Sri Lanka partially recovered (70‐80%), while African market

has been witnessing ~15% growth. However, other export markets are muted

with more or less flat volume.

The Government has lowered the export benefits by reducing Duty Drawback

from 5.5% to 2% at the beginning of Oct’12. BAL has already planned to pass

on 75‐80% impact of lower duty drawback by vehicle price hike effective from

November 01, 2012.

BAL incurred forex loss to the tune of Rs. 0.5 bn on its forward contracts, due

to lower‐than‐expected exports in Q2FY13. However, its Management guided

for negligible forex loss estimated for H2FY13. Its effective export realization

would be Rs. 49.5/$ in H2FY13 vs. Rs. 48.81/$ in Q2FY13.

BAL has hedged ~30% of its FY14 exports ($600 mn) in the range of Rs. 53‐63/$,

majority being ~Rs. 55/$, which would benefit the Company on revenues and

margins front in FY14E.

BAL plans to launch new 100cc Discover in Q4FY13, while its new four‐

wheeler RE60 is expected to be launched in Q1FY14.

In three‐wheeler segment, BAL expects monthly volumes of ~18K in domestic

market, while 20‐25K overseas. It may also benefit from opening of new

permits in New Delhi & Hyderabad.

BAL has hiked prices on its vehicle in range of 1‐2% at beginning of Oct’12,

which would benefit on margins front, going forward.

BAL plans a capex of Rs. 5 bn on its core business over two years, while its

Cash & Cash Equivalent stood at Rs. 45 bn at H1FY13‐end.

4

October 22, 2012

Bajaj Auto

Exhibit 1: P&L Review

YE March (Rs. mn) Q2

FY13

Q2

FY12

YoY

(%)

Q1

FY13

QoQ

(%)

H1

FY13

H1

FY12

YoY

(%)

Motorcycles (Units) 601,876 684,671 ‐12.1 618,489 ‐2.7 1,220,365 1,307,846 ‐6.7

3‐wheelers (Units) 57,047 55,332 3.1 44,837 27.2 101,884 97,608 4.4

Domestic 658,923 740,003 ‐11.0 663,326 ‐0.7 1,322,249 1,405,454 ‐5.9

Exports 390,285 424,134 ‐8.0 415,645 ‐6.1 805,930 851,498 ‐5.4

Total (Domestic + Exports) (Units) 1,049,208 1,164,137 ‐9.9 1,078,971 ‐2.8 2,128,179 2,256,952 ‐5.7

Total Revenue 49,724 51,854 ‐4.1 48,657 2.2 98,381 98,917 ‐0.5

Less:

Net Raw Material consumed 35,686 37,624 ‐5.2 35,080 1.7 70,767 72,283 ‐2.1

Advertisement and sales promotion Exp. 3,353 3,083 8.8 3,255 3.0 6,609 5,657 16.8

Personnel 1,532 1,392 10.0 1,604 ‐4.5 3,136 2,823 11.1

Total Expenditure 40,572 42,099 ‐3.6 39,940 1.6 80,512 80,763 ‐0.3

EBIDTA 9,152 9,755 ‐6.2 8,717 5.0 17,869 18,153 ‐1.6

Less: Depreciation 410 394 4.1 352 16.5 763 701 8.9

EBIT 8,742 9,361 ‐6.6 8,365 4.5 17,106 17,453 ‐2.0

Less: Interest 2 202 ‐98.9 0 450.0 3 205 ‐98.7

Add: Other income 1,667 1,564 6.6 1,820 ‐8.4 3,487 3,005 16.0

Profit Before Extra‐ordinary items and Tax 10,407 10,722 ‐2.9 10,184 2.2 20,591 20,253 1.7

Less: Extraordinary Expense (net) 0 954 ‐100.0 0 NA 0 954 ‐100.0

Profit Before Tax 10,407 9,768 6.5 10,184 2.2 20,591 19,299 6.7

Less: Total Tax 3,000 2,510 19.5 3,000 0.0 6,000 4,930 21.7

Profit After Tax 7,407 7,258 2.0 7,184 3.1 14,591 14,369 1.5

Profit After Tax Excl. extra‐ordinaries 7,407 7,902 ‐6.3 7,184 3.1 14,591 15,013 ‐2.8

Reported EPS (Rs.) 25.6 25.1 1.9 24.8 3.2 50.4 49.7 1.3

Proforma EPS (Rs.) 25.6 27.4 ‐6.4 24.8 3.2 50.4 52.0 ‐3.0

Margin Analysis (%) Change

in bps

Change

in bps

Change

in bps

EBIDTA Margin 18.4 18.8 ‐41 17.9 49 18.2 18.4 ‐19

Proforma NPM 14.9 15.2 ‐34 14.8 13 14.8 15.2 ‐35

Effective Tax Rate 28.8 25.7 313 29.5 ‐63 29.1 25.5 359

Cost Analysis (%)

RM/Net Sales 71.8 72.6 ‐79 72.1 ‐33 71.9 73.1 ‐114

Adv.& Sales Promotion Expenses./Net Sales 6.7 5.9 80 6.7 5 6.7 5.7 100

Personnel/Net Sales 3.1 2.7 40 3.3 ‐22 3.2 2.9 33

Source: Company, Karvy Institutional Research, NM: Not Applicable

5

October 22, 2012

Bajaj Auto

Volume Analysis

Exhibit 2: Quarterly Domestic Volume Analysis

Source: SIAM, Company, Karvy Institutional Research

Exhibit 3: Half yearly Domestic Volume Analysis


Exhibit 4: Quarterly Export Volume Analysis


Exhibit 5: Half yearly Export Volume Analysis


Exhibit 6: Motorcycle: Export Trend


Exhibit 7: Three ‐wheelers: Export Trend


‐

100

200

300

400

500

600

700

800

Q1 FY12 Q2 FY12 Q1 FY13 Q2 FY13

Motorcycles 3‐wheelers

(ʹ000 unit)

‐

200

400

600

800

1,000

1,200

1,400

H1 FY12 H1 FY13


(ʹ000 unit)

‐

50

100

150

200

250

300

350

400

Q1 FY12 Q2 FY12 Q1 FY13 Q2 FY13


(ʹ000 unit)

‐

100

200

300

400

500

600

700

800

H1 FY12 H1 FY13


(ʹ000 unit)

(20.0)

‐

20.0

40.0

60.0

80.0

‐

50

100

150

200

250

300

350

400

Q1FY11

Q2FY11

Q3FY11

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Q4FY12

Q1FY13

Q2FY13

Motorcycle (LHS) Growth YoY (%)

ʹ000 units

(100.0)

(50.0)

‐

50.0

100.0

150.0

‐

20

40

60

80

100

Q1FY11

Q2FY11

Q3FY11

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Q4FY12

Q1FY13

Q2FY13

Three Wheelers (LHS) Growth YoY (%)

ʹ000 units

6

October 22, 2012

Bajaj Auto

Exhibit 8: Segmental Quarterly Volume Analysis

Domestic Exports Total

Units Q2FY13 Q2FY12 YoY (%) Q2FY13 Q2FY12 YoY (%) Q2FY13 Q2FY12 YoY (%)

Bajaj Auto

Motorcycles 601,876 684,671 (12.1) 326,648 342,686 (4.7) 928,524 1,027,357 (9.6)

75 cc to 110 cc 301,565 291,722 3.4 206,584 219,541 (5.9) 508,149 511,263 (0.6)

110 cc to 125 cc 134,679 135,786 (0.8) 21,999 31,963 (31.2) 156,678 167,749 (6.6)

125 cc to 150 cc 110,817 209,611 (47.1) 74,896 66,451 12.7 185,713 276,062 (32.7)

150 cc to 200 cc 37,819 25,883 46.1 15,767 12,840 22.8 53,586 38,723 38.4

200 cc to 250 cc 16,996 21,669 (21.6) 7,402 11,891 (37.8) 24,398 33,560 (27.3)

Total 2 Wheelers 601,876 684,671 (12.1) 326,648 342,686 (4.7) 928,524 1,027,357 (9.6)

Three Wheelers 57,047 55,332 3.1 63,637 81,448 (21.9) 120,684 136,780 (11.8)

Total 658,923 740,003 (11.0) 390,285 424,134 (8.0) 1,049,208 1,164,137 (9.9)

Industry

Motorcycles 2,341,641 2,548,455 (8.1) 456,762 502,323 (9.1) 2,798,403 3,050,778 (8.3)

75 cc to 110 cc 1,499,845 1,658,362 (9.6) 265,582 297,547 (10.7) 1,765,427 1,955,909 (9.7)

110 cc to 125 cc 467,336 374,963 24.6 44,291 58,218 (23.9) 511,627 433,181 18.1

125 cc to 150 cc 250,829 389,763 (35.6) 110,338 100,367 9.9 361,167 490,130 (26.3)

150 cc to 200 cc 67,196 65,151 3.1 27,325 33,584 (18.6) 94,521 98,735 (4.3)

200 cc to 250 cc 26,851 40,715 (34.1) 8,410 12,008 (30.0) 35,261 52,723 (33.1)

Total 2 Wheelers 3,076,355 3,196,705 (3.8) 479,489 528,921 (9.3) 3,555,844 3,725,626 (4.6)

Three Wheelers 139,248 138,687 0.4 76,314 96,086 (20.6) 215,562 234,773 (8.2)

Total 3,215,603 3,335,392 (3.6) 555,803 625,007 (11.1) 3,771,406 3,960,399 (4.8)

Source: SIAM, Karvy Institutional Research

7

October 22, 2012

Bajaj Auto

Market Share Analysis

Exhibit 9: Domestic Motorcycle Market share Trend


Exhibit 10: Segmental Motorcycle Market Shares


Exhibit 11: Bajaj Auto – Quarterly Market Share


Exhibit 12: Bajaj Auto ‐ Semiannual Market Share


Exhibit 13: Three‐wheeler Market Shares (PV & CV)


0

20

40

60

80

Jan‐11

Feb‐11

Mar‐11

Apr‐11

May‐11

Jun‐11

Jul‐11

Aug‐11

Sep‐11

Oct‐11

Nov‐11

Dec‐11

Jan‐12

Feb‐12

Mar‐12

Apr‐12

May‐12

Jun‐12

Jul‐12

Aug‐12

Sep‐12

Bajaj Auto Hero MotoCorp Ltd TVS Motor Other

(%)

‐

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Jan‐10

Mar‐10

May‐10

Jul‐10

Sep‐10

Nov‐10

Jan‐11

Mar‐11

May‐11

Jul‐11

Sep‐11

Nov‐11

Jan‐12

Mar‐12

May‐12

Jul‐12

Sep‐12

75‐125 cc 125‐250 cc

(%)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Q2FY12 Q2FY13 YTD FY12 YTD FY13

Motorcycles Three Wheelers

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

H1 FY12 H1 FY13 YTD FY12 YTD FY13

Motorcycles Three Wheelers

‐

10.0

20.0

30.0

40.0

50.0

60.0

70.0

FY06 FY07 FY08 FY09 FY10 FY11 FY12 H1

FY12

H1

FY13

Passenger Carrier Goods Carrier 3 Wheelers

(%)

8

October 22, 2012

Bajaj Auto

Exhibit 14: Product Mix – Bajaj Auto

s


Exhibit 15: USD to INR Trend

Source: Bloomberg, Karvy Institutional Research

Exhibit 16: BAL’s Exports in terms of Volumes & Value

Q2 FY13 Q2 FY12 Change (%)

Total 2‐Wheelers 326,648 342,686 (4.7)

Total 3‐Wheelers 63,637 81,448 (21.9)

Grand Total 390,285 424,134 (8.0)

Value Rs. Mn 16,650 17,330 (3.9)


Exhibit 17: BAL’s Exports as Percentage of Total Volume


88 88 89 88 89 88 87 88 89 89 89 86 87 88 90 90 91 92 90 88 88

12 12 11 12 11 12 13 12 11 11 11 14 13 12 10 10 9 8 10 12 12

0

20

40

60

80

100

Jan‐11

Mar‐11

May‐11

Jul‐11

Sep‐11

Nov‐11

Jan‐12

Mar‐12

May‐12

Jul‐12

Sep‐12

Motorcycle Three Wheelers

(%)

0

10

20

30

40

50

60

70

4‐Jan‐00

4‐Jan‐01

4‐Jan‐02

4‐Jan‐03

4‐Jan‐04

4‐Jan‐05

4‐Jan‐06

4‐Jan‐07

4‐Jan‐08

4‐Jan‐09

4‐Jan‐10

4‐Jan‐11

4‐Jan‐12

USD‐INR

‐

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Q1

FY06

Q3

FY06

Q1

FY07

Q3

FY07

Q1

FY08

Q3

FY08

Q1

FY09

Q3

FY09

Q1

FY10

Q3

FY10

Q1

FY11

Q3

FY11

Q1

FY12

Q3

FY12

Q1

FY13

Motorcycle 3 wheeler

(%)

9

October 22, 2012

Bajaj Auto

Financials

Exhibit 18: Profit & Loss Statement (Standalone)

Rs. mn FY10 FY11 FY12 FY13E FY14E

Net revenues 118,966 165,768 197,696 210,800 256,973

Operating expenses 92,982 131,960 159,255 172,466 208,752

EBIDTA 25,984 33,808 38,441 38,333 48,221

EBIDTA margin (%) 21.8 20.4 19.4 18.2 18.8

Other income 1,412 3,886 3,578 7,175 7,949

Interest 60 17 222 26 59

Depreciation 1,365 1,228 1,456 1,622 1,791

Profit Before Tax 24,076 43,478 40,262 43,860 54,322

Tax 7,075 10,080 10,221 12,748 15,916

Reported Net Profit 17,001 33,397 30,041 31,112 38,405

Net Margin (%) 14.3 20.1 15.2 14.8 14.9

Adjusted Net Profit 18,339 27,998 30,099 31,112 38,405


Exhibit 19: Balance Sheet (Standalone)

Rs. in mn FY10 FY11 FY12 FY13E FY14E

Equity capital 1,447 2,894 2,894 2,894 2,894

Reserves & surplus 27,837 46,209 57,517 73,495 96,766

Shareholders funds 29,283 49,102 60,411 76,388 99,660

Total Loans 13,386 3,276 2,546 2,746 1,946

Deferred tax liability 17 297 484 484 484

Total Liabilities and Equity 42,686 52,675 63,441 79,618 102,090

Gross block 33,793 33,909 34,238 38,181 41,406

Depreciation 18,997 19,125 19,143 20,999 22,773

Net block 14,796 14,784 15,095 17,181 18,633

Capital WIP 415 699 118 675 450

Investments 40,215 51,280 48,864 64,864 89,064

Inventory 4,462 5,473 6,785 7,560 9,151

Debtors 2,395 3,599 4,228 4,620 4,928

Cash & Bank Bal 1,014 2,288 16,538 14,721 10,584

Loans & Advances 7,968 14,353 19,183 19,967 23,661

Current Assets 15,838 25,713 46,735 46,869 48,324

Sundry Creditors 17,706 20,689 23,150 25,750 30,161

Other Current Liability 10,873 19,111 24,220 24,220 24,220

Current Liability& Provisions 28,579 39,800 47,370 49,971 54,381

Net current assets ‐12,740 ‐14,087 ‐636 ‐3,102 ‐6,057

Total Assets 42,686 52,675 63,441 79,618 102,090


10

October 22, 2012

Bajaj Auto

Exhibit 20: Cash Flow Statement (Standalone)

Rsmn FY2010 FY2011 FY2012 FY2013E FY2014E

EBIT 24,619 32,580 36,984 36,711 46,431

Other Income 1,412 3,886 3,578 7,175 7,949

Depreciation & Amortisation 1,365 1,228 1,456 1,622 1,791

Interest paid(‐) (60) (17) (222) (26) (59)

Tax paid(‐) (7,075) (10,080) (10,221) (12,748) (15,916)

Extra Ord Income (1,895) 7,029 (78) 0 0

Operating Cash Flow 18,366 34,626 31,497 32,734 40,196

Change in Working Capital 11,263 2,621 799 649 (1,182)

Cash flow from Operations 29,628 37,247 32,296 33,383 39,014

Capex 901 (1,543) (1,164) (4,266) (3,017)

Strategic Investment (827) (2,101) (681) (2,000) (200)

Non Strategic Investment (21,303) (8,921) 3,076 (14,000) (24,000)

Cash flow from Investing (21,229) (12,565) 1,230 (20,266) (27,217)

Change in borrowing (2,314) (10,110) (730) 200 (800)

Equity Issue 309 154 (3,411) (0) (0)

Dividends paid(‐) (6,749) (13,452) (15,134) (15,134) (15,134)

Cashflow from Financial Activities (8,754) (23,408) (19,275) (14,934) (15,934)

Change in Cash (355) 1,274 14,251 (1,817) (4,137)

Opening cash 1,369 1,014 2,288 16,538 14,721

Closing cash 1,014 2,288 16,538 14,721 10,584


Exhibit 21: Key Ratios

FY10 FY11 FY12 FY13E FY14E

Revenue Growth 35.5 39.3 19.3 6.6 21.9

EBITDA Margin 21.8 20.4 19.4 18.2 18.8

Net Profit Margin 15.4 16.9 15.2 14.8 14.9

ROCE (%) 44.8 51.5 46.1 39.4 39.1

ROE (%) 69.3 61.0 48.3 41.0 40.2


Exhibit 22: Valuation Parameters

FY10 FY11 FY12 FY13E FY14E

EPS( Rs) 63.4 96.8 104.0 107.5 132.7

P/E (x) 28.0 18.3 17.0 16.5 13.3

P/ BV (x) 17.5 10.4 8.5 6.7 5.1

EV/ EBITDA (x) 20.2 15.2 13.0 13.1 10.5

Fixed Assets Turnover Ratio (x) 7.8 10.7 13.0 11.8 13.5

Debt / Equity (x) 0.5 0.1 0.0 0.0 0.0

EV/ Sales (x) 4.4 3.1 2.5 2.4 2.0


Institutional Equities Team Rangachari Muralikrishnan

Head – Institutional Equities /

Research / Strategy +91‐22 61844301 [email protected]

Shridhar Iyer Head ‐ Institutional Sales +91‐22 61844302 [email protected]

K. Anant Rao Head ‐ Sales‐Trading & Derivatives +91‐22 61844303 [email protected]

Uday Raval Karvy Inc. USA +1 212 2674334 [email protected]

INSTITUTIONAL RESEARCH

Analysts Industry / Sector Desk Phone Email ID

Dwaipayan Poddar Chief Technical Strategist +91‐22 61844372 [email protected]

Hatim Broachwala, CFA Banking +91‐22 61844329 [email protected]

Jagadishwar Pasunoori, CFA, FRM MidCap +91‐40‐44857912 [email protected]

Manoj Kumar Manish Derivatives and Quant Analyst +91‐22 61844327 [email protected]

Maruti Kadam Automobiles / Metals & Mining +91‐22 61844326 [email protected]

Mitul Shah Automobiles +91‐22 61844312 [email protected]

Nishith Sanghvi Pharmaceuticals +91‐22 61844325 [email protected]

Naveen Trivedi FMCG +91‐22‐61844316 [email protected]

Pallav Agarwal Metals & Mining +91‐22 61844317 [email protected]

Paresh Jain BFSI +91‐22 61844324 [email protected]

Parikshit Kandpal Infra / Real Estate / Strategy +91‐22 61844311 [email protected]

Rahul Sharma Pharmaceuticals +91‐22 61844310 [email protected]

Rahul Singh MidCap +91‐40‐44857911 [email protected]

Rajesh Kumar Ravi Cement & Logistics +91‐22 61844313 [email protected]

Rupesh Sankhe Power/Capital Goods +91‐22 61844315 [email protected]

Vinay Nair Oil & Gas +91‐22 61844319 [email protected]

INSTITUTIONAL SALES

Dinesh Bajaj Sales +91‐22 61844341 [email protected]

R. Sriram Sales +91‐22 61844340 [email protected]

Shabbir Dahodwala Sales (USA) +1‐212‐2674334 [email protected]

Tejash Gandhi Sales +91‐22 61844345 [email protected]

INSTITUTIONAL SALES TRADING & DEALING

Bhavesh Gandhi Institutional Dealer +91‐22 61844368 /69 [email protected]

Prashant Oza Institutional Dealer +91‐22 61844370 /71 [email protected]

Parag Shah Sales Trader +91‐22 61844364 /65 [email protected]

Sriram Jagdish Sales Trader +91‐22 61844366 /67 [email protected]

Gurdarshan Singh Kharbanda Sales Trader +91‐22‐61844368 / 69 [email protected]

PRODUCTION

Asim Kumar Mohapatra Editor +91‐22 61844318 [email protected]

Vishal Randive Database Analyst +91‐22 61844321 [email protected]

Vijayalaxmi Moolya Production +91‐22 61844328 [email protected]

For further enquiries please contact:

[email protected]

Tel: +91‐22‐6184 4300

Disclosures Appendix

Analyst certification

The following analyst(s), who is (are) primarily responsible for this report, certify (ies) that the views expressed herein

accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their)

compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this

research report.

Disclaimer

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contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the

accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss

incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors.

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