1

Market Strategy: Trending Towards New Highs August 2016

Anand Laddha Research Analyst anand.laddha@edelweissfin.com +91 (22) 4272 2636

Sahil Kapoor Chief Market Strategist sahil.kapoor@edelweissfin.com +91 (22) 4088 6044

2

Market Strategy

Favourable growth dynamics, a quasi stimulus from the 7th Pay Commission doles, positive policy developments,

under control inflation and a reviving Emerging Markets outlook are coming together to give Indian markets a reason to trend towards life highs. We continue to remain "Bullish” on Indian equities over medium to long term. We expect Nifty (current level - 8538) to scale to a life time high in FY17 and there appears to be upside risks to our targets. Monsoon for the current year is progressive at above normal pace and sowing is accelerating all over India – this

should help inflation numbers to cool off and rural economy to recover

Stronger focus on rural India and front loading of government expenditure in the first quarter will support revival of the economy and especially the hard hit rural India

7th Pay Commission increments and arrears are expected to get credited in the next one month. This would result in a large demand push, especially on urban consumption

Crude oil prices have corrected by more than 15% after hitting $54 Brent in early June’16. This would keep the

room open for the government to remain committed to its fiscal targets and to continue its investment spending.

Probability of GST getting passed in this monsoon session has increased significantly due to change in the mix of Rajya Sabha. This would be a big positive step over the long term

We expect marginal growth in earnings due to base effect and nominal increase in demand from core industries in Q1FY17 results. An earnings revival may take place in the next two quarters

Risk: No short term visibility on Brexit, FCNR redemption in September and elections in major economies

3

Equity Strategy

Key recommended sectors and rationale

Autos and Auto ancillary – Twin benefit of fall in input cost due to low commodity prices and increase in

consumption demand

Private Sector Banks and NBFCs – Fall in interest rates and pent up consumer credit will lead to improvement in asset quality

Infrastructure – Government focus and spending on infrastructure will aid execution. Roads sector remain key beneficiary of a strong minister at the helm with an excellent execution track record

Textile – Branded apparel will do well owing to pent up demand and fall in cotton prices

Cement – We expect recovery in cement demand led by infrastructure uptick and higher government spending. We believe that South-based cement companies will continue to outperform the sector led by a strong pricing environment

Consumer Sector – With the implementation of the 7th Pay Commission pay hike for (central and state)

government employees, combined with a good monsoon, consumption will get a boost

4

Emerging Markets – Back From The Brink

EMs Growth Differential Over US Is Positive & Rising Ems Manufacturing PMI Staging A Comeback

85

100

115

130

145

160

175

-1

0

1

2

3

4

5

Jan-02 Jan-05 Jan-08 Jan-11 Jan-14

(In

de

x, 1

00

= D

ec

em

be

r 2

00

2)

(%)

EM-US Growth Differential EMFX

The sharp rise in the aggregate EM PMI in July suggests that after a brief pause in Q2, the recovery in EM industry

resumed at the start of the third quarter

Markit’s EM manufacturing PMI index rose to 50.3 in July, from 49.3 in June. This was the strongest reading since

February of last year

The large EMs Brazil, Russia, India and China are now seeing growth differential over US expanding. This means

that the rebound rally in EMs is significant and would continue

India is witnessing the strongest growth rate among large EMs and is getting premium valuations

Source: Capital Economics Source: Edel Invest Research

35

40

45

50

55

60

35

40

45

50

55

60

05 06 07 08 09 10 11 12 13 14 15 16

Expansion

Contraction

5

Indications Of Growth Uptick In India

-20.00

-15.00

-10.00

-5.00

0.00

5.00

10.00

15.00

20.00 Ju

l-1

1

Oc

t-1

1

Ja

n-1

2

Ap

r-1

2

Ju

l-1

2

Oc

t-1

2

Ja

n-1

3

Ap

r-1

3

Ju

l-1

3

Oc

t-1

3

Ja

n-1

4

Ap

r-1

4

Ju

l-1

4

Oc

t-1

4

Ja

n-1

5

Ap

r-1

5

Ju

l-1

5

Oc

t-1

5

Ja

n-1

6

Ap

r-1

6

Electricity Production Increasing Steadily

Coal 3MMA, YoY % Growth Electricity 3MMA, YoY % Growth

-10.00

-5.00

0.00

5.00

10.00

15.00

20.00

Ju

l-1

1

Oc

t-1

1

Ja

n-1

2

Ap

r-1

2

Ju

l-1

2

Oc

t-1

2

Ja

n-1

3

Ap

r-1

3

Ju

l-1

3

Oc

t-1

3

Ja

n-1

4

Ap

r-1

4

Ju

l-1

4

Oc

t-1

4

Ja

n-1

5

Ap

r-1

5

Ju

l-1

5

Oc

t-1

5

Ja

n-1

6

Ap

r-1

6

Infra Demand Proxies Are Robust

Steel 3MMA, YoY % Growth Cement 3MMA, YoY % Growth

Cement and Steel demand has been growing steadily as

Govt. infra push bears fruit

Electricity growth has been robust and indicates strengthening growth dynamics

-15.00

-10.00

-5.00

0.00

5.00

10.00

15.00

20.00

Ju

l-1

1

Oc

t-1

1

Ja

n-1

2

Ap

r-1

2

Ju

l-1

2

Oc

t-1

2

Ja

n-1

3

Ap

r-1

3

Ju

l-1

3

Oc

t-1

3

Ja

n-1

4

Ap

r-1

4

Ju

l-1

4

Oc

t-1

4

Ja

n-1

5

Ap

r-1

5

Ju

l-1

5

Oc

t-1

5

Ja

n-1

6

Ap

r-1

6

Production of Agri Base Commodity

Increasing

Fertilizers 3MMA, YoY % Growth

Source: Edel Invest Research

-47,000

-37,000

-27,000

-17,000

-7,000

3,000

13,000

23,000

33,000

-19%

-14%

-9%

-4%

1%

6%

11%

16%

Apr-14 Oct-14 Apr-15 Oct-15 Apr-16

LCV Monthly Volumes Are Trending Higher

Monthly LCV Units Sale(Right) 3MMA,YoY - LCV

6

Non-Plan CapEx As % of Budget Set To Rise, And Push Growth Up

13.77 14.59

18.45 18.54

22.96

17.91

30.19

24.44

28.91

25.9 25.96

22.63

0

5

10

15

20

25

30

35

31-06-2011 31-06-2012 31-06-2013 31-06-2014 31-06-2015 31-06-2016

% T

o B

E

Capital Expenditure As Percentage to Central Budgeted Estimates

Plan Capital Exp Non-Plan Capital Exp

At lowest level in last five

years, higher capex is

expected in coming quarters

for FY2016-17

Source: Edel Invest Research

7

Global QE Is Reaching Unprecedented Levels

0

50

100

150

200

250

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(US$

bn

)

Monthly Fed, ECB and BoJ Asset Purchases

BoE Fed BoJ ECB

Approx $180bn

0

20

40

60

80

100

05

05

06

07

08

09

10

11

12

13

14

15

16

(% T

o G

DP

)

Central Banks Have Increased Their Balance

Sheet By More Than $13trn In 10 Years

Euro Area Japan UK US

The stepping up of quantitative easing in Eurozone and unprecedented interest rate cuts in other developed

economies have kept liquidity levels at record levels

The US Fed has abstained from raising interest rates citing either local economic slack or slower growth globally.

This has led to correction of divergence in monetary policy in the US and elsewhere

This has also led to resumption of flows into risky assets which includes Emerging Markets

Source: Edel Invest Research

8

Foreign Portfolio Investors Flock Emerging Markets As Volatility Declines

19

29

39

49

28

-Ju

l-1

5

11

-Au

g-1

5

25

-Au

g-1

5

8-S

ep

-15

22

-Se

p-1

5

6-O

ct-

15

20

-Oc

t-1

5

3-N

ov-1

5

17

-No

v-1

5

1-D

ec

-15

15

-De

c-1

5

29

-De

c-1

5

12

-Ja

n-1

6

26

-Ja

n-1

6

9-F

eb

-16

23

-Fe

b-1

6

8-M

ar-

16

22

-Ma

r-1

6

5-A

pr-

16

19

-Ap

r-1

6

3-M

ay-1

6

17

-Ma

y-1

6

31

-Ma

y-1

6

14

-Ju

n-1

6

28

-Ju

n-1

6

12

-Ju

l-1

6

26

-Ju

l-1

6

Emerging Markets ETF Volatility Index

CBOE Emerging Markets ETF Volatility Index

2.6

2.7

2.7

2.8

2.8

2.9

2.9

3.0

3.0

3.1

5

7

9

11

13

15

17

19

1-1

-20

16

1-1

5-2

01

6

1-2

9-2

01

6

2-1

2-2

01

6

2-2

6-2

01

6

3-1

1-2

01

6

3-2

5-2

01

6

4-8

-20

16

4-2

2-2

01

6

5-6

-20

16

5-2

0-2

01

6

6-3

-20

16

6-1

7-2

01

6

7-1

-20

16

7-1

5-2

01

6

7-2

9-2

01

6

EMs Bond Yields Have Softened

India 10 Yr Yield (LHS) Brazil 10 Year Yield(LHS)

Indonesia 10 Year Yield (LHS) China 10 Year Yield (RHS)

-5

-4

-3

-2

-1

0

1

2

3

4

5

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51

(US$

bn

)

Weekly Emerging-Market Bond Flows At

Highest Level in Year

Aug-15 Jan-16 Jun-16 Jul-16

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Jan -16 Feb -16 Mar -16 Apr -16 May -16 Jun -16 Jul -16

(US$ b

n)

Biggest Weekly Flows in ETF in Almost Last Two

Years

Source: Edel Invest Research

9

India 10 Year Yield Softens To 3 year Low

7

7.2

7.4

7.6

7.8

0

200

400

600

800

1000

1200

1400

1600 3

1-D

ec

7-J

an

14

-Ja

n

21

-Ja

n

28

-Ja

n

4-F

eb

11

-Fe

b

18

-Fe

b

25

-Fe

b

3-M

ar

10

-Ma

r

17

-Ma

r

24

-Ma

r

31

-Ma

r

7-A

pr

14

-Ap

r

21

-Ap

r

28

-Ap

r

5-M

ay

12

-Ma

y

19

-Ma

y

26

-Ma

y

2-J

un

9-J

un

16

-Ju

n

23

-Ju

n

30

-Ju

n

7-J

ul

14

-Ju

l

21

-Ju

l

28

-Ju

l

% C

ha

ng

e

INR

Bn

Daily sovereign bond turnover (LHS) Benchmark 10-year bond yield (RHS)

Indian sovereign bonds are in great demand among foreign funds and investors at home. The daily turnover

climbed to an unprecedented 1.43 trillion rupees ($21 billion) last week

Improving cash supply in India’s banking system and mounting speculation of a dovish new central banker have

spurred appetite for the securities locally, helping contribute to the biggest monthly rally in 10-year notes since

May 2013

Source: Edel Invest Research

10

Consumption Recovery To Gather Steam

Consumer Durable

we expect demand of white goods will increase after outflow of 7th pay commission

FMCG

Slightly positive for FMCG sector demand, major demand uptick would happen post good monsoon

Automobile

Employees are going to receive onetime arrear of 6 months and incremental pay of 23% that can push luxurious goods demand like auto, Jewellery, etc

Real Estate

Arrear and rise in salaries of 1cr employees can push affordable housing demand

Incremental Outflow of

INR ~85,000 cr till

the end of this year

including arrears and

incremental salary, plus

it would increase if

states implement 7th

Pay commission in this

financial Year itself

11

GST - Positive Impact on Different Sectors & Stocks

Sectors Stocks – Expected To Benefit from GST

Automobiles Maruti Suzuki, Hero MotoCorp, Bajaj Auto, Eicher Motors, Ashok Leyland

Consumer Durables CGCE, Havells, Voltas, Blue Star, Bajaj Electricals, Symphony, Hitachi

FMCG HUL, GCPL, P&G, Asian Paints, Berger Paints

Paints Asian Paints, Berger Paints, Kansai Nerolac, Akzo Nobel, BASF India

Sanitary HSIL , Cera Sanitaryware

Ceramic H&R Johnson (Prism Cements), Kajaria Ceramics

Ply Greenply, Greenlam Industries

Logistics VRL Logistics, GATI, Blue Dart, Transport Corporation of India, Snowman Logistics

Cement ACC, Ultratech, JK Cement, Shree Cement

Entertainment PVR, Inox Leisure, Dish Tv

Textiles/ Garments Arvind, Raymond, Page Industries

Nifty Hits 52 Week High, History Says Trend To Continue

Fresh 52 week high after March’15

Percentage of Nifty stocks above 200 DMA

Number of Nifty Stocks at 52 week high Number of Nifty Stocks at 52 week low

Nifty 52 Week High

Nifty 52 Week Low

13

Data Sets

14

EM Market Valuation – India Still Near Long Term Averages

P/E Ratio Current 5 Yrs Avrg 10 Yrs Avrg 2016E 2017E

MSCI EM 15.4 12.0 13.1 13.2 11.6

HANG SENG INDEX 11.0 10.3 12.5 12.3 11.1

SHANGHAI SE COMPOSITE 16.3 13.8 19.6 13.6 12.1

RUSSIAN RTS INDEX $ 7.5 5.4 6.6 7.2 6.2

KOSPI INDEX 17.1 15.3 14.7 11.1 10.1

TAIWAN TAIEX INDEX 16.4 16.9 18.2 14.5 13.2

Nifty 50 21.8 17.4 18.3 18.0 15.0

S&P BSE SENSEX INDEX 20.7 17.5 18.6 17.6 14.8

Source: Bloomberg

All data on basis of Calendar Year; * TTM(Trailing Twelve Months)

P/B Ratio Current 5 Yrs Avrg 10 Yrs Avrg 2016E 2017E

MSCI EM 1.5 1.5 1.8 1.4 1.4

HANG SENG INDEX 1.1 1.3 1.7 1.1 1.1

SHANGHAI SE COMPOSITE 1.6 1.7 2.5 1.4 1.4

RUSSIAN RTS INDEX $ 0.9 0.7 0.9 0.7 0.7

KOSPI INDEX 1.0 1.0 1.1 1.0 1.0

TAIWAN TAIEX INDEX 1.5 1.6 1.7 1.6 1.6

Nifty 50 3.0 2.6 3.2 2.8 2.8

S&P BSE SENSEX INDEX 3.0 2.7 3.4 2.8 2.8

15

Nifty & Sensex Consensus EPS

369 429

-30%

-20%

-10%

0%

10%

20%

30%

-1000

-800

-600

-400

-200

0

200

400

600

800

1000

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017(e)

Nifty EPS

YoY Growth (Right) Nifty EPS (Left)

Source: Bloomberg; Edel Invest Research

16

Banking Stress Peaking, Further Adverse Impact Limited

0%

3%

6%

9%

12%

15%

18%

21%

0

2000

4000

6000

8000

10000

12000

14000

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E

PSU Bank Stress Assets

Total Stress in PSU banks (INR bn) (LHS) Gross NPA+ Rest assets (%) - PSU banks (RHS)

0%

1%

2%

3%

4%

5%

6%

7%

0

200

400

600

800

1000

1200

1400

1600

1800

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E

Private Bank Stress Assets

Total Stress in Private banks (INR bn) (LHS) Gross NPA+ Rest assets (%) - Private (RHS)

Source: Edel Invest Research

17

Industrial Production Subdued, Pace Set To Increase

-6.0 -4.0 -2.0

- 2.0 4.0 6.0 8.0

10.0 12.0 14.0 16.0

Ja

n-1

3

Fe

b-1

3

Ma

r-1

3

Ap

r-1

3

Ma

y-1

3

Ju

n-1

3

Ju

l-1

3

Au

g-1

3

Se

p-1

3

Oc

t-1

3

No

v-1

3

De

c-1

3

Ja

n-1

4

Fe

b-1

4

Ma

r-1

4

Ap

r-1

4

Ma

y-1

4

Ju

n-1

4

Ju

l-1

4

Au

g-1

4

Se

p-1

4

Oc

t-1

4

No

v-1

4

De

c-1

4

Ja

n-1

5

Fe

b-1

5

Ma

r-1

5

Ap

r-1

5

Ma

y-1

5

Ju

n-1

5

Ju

l-1

5

Au

g-1

5

Se

p-1

5

Oc

t-1

5

No

v-1

5

De

c-1

5

Ja

n-1

6

Fe

b-1

6

Ma

r-1

6

Ap

r-1

6

Ma

y-1

6

3MMA-By Production

IIP-3MMA Mining Total-3MMA Electricity Index-3MMA Manufacturing Total -3MMA

-25.0

-20.0

-15.0

-10.0

-5.0

-

5.0

10.0

15.0

20.0

Ja

n-1

3

Fe

b-1

3

Ma

r-1

3

Ap

r-1

3

Ma

y-1

3

Ju

n-1

3

Ju

l-1

3

Au

g-1

3

Se

p-1

3

Oc

t-1

3

No

v-1

3

De

c-1

3

Ja

n-1

4

Fe

b-1

4

Ma

r-1

4

Ap

r-1

4

Ma

y-1

4

Ju

n-1

4

Ju

l-1

4

Au

g-1

4

Se

p-1

4

Oc

t-1

4

No

v-1

4

De

c-1

4

Ja

n-1

5

Fe

b-1

5

Ma

r-1

5

Ap

r-1

5

Ma

y-1

5

Ju

n-1

5

Ju

l-1

5

Au

g-1

5

Se

p-1

5

Oc

t-1

5

No

v-1

5

De

c-1

5

Ja

n-1

6

Fe

b-1

6

Ma

r-1

6

Ap

r-1

6

Ma

y-1

6

3MMA-By Usage

IIP-3MMA Basic goods -3MMA Capital goods -3MMA Intermediate goods -3MMA Consumer goods -3MMA

Source: Edel Invest Research

18

Forex Reserves At Record High, Capacity Utilization Subdued

60

65

70

75

80

85

Ju

n-0

8

Oc

t-0

8

Fe

b-0

9

Ju

n-0

9

Oc

t-0

9

Fe

b-1

0

Ju

n-1

0

Oc

t-1

0

Fe

b-1

1

Ju

n-1

1

Oc

t-1

1

Fe

b-1

2

Ju

n-1

2

Oc

t-1

2

Fe

b-1

3

Ju

n-1

3

Oc

t-1

3

Fe

b-1

4

Ju

n-1

4

Oc

t-1

4

Fe

b-1

5

Ju

n-1

5

Oc

t-1

5

Capacity utilisation %

Capacity utilisation %

-14%

-7%

0%

7%

14%

21%

28%

35%

42%

-5,000

-3,000

-1,000

1,000

3,000

5,000

7,000

9,000

11,000

13,000

Ju

n-0

2

Ja

n-0

3

Au

g-0

3

Ma

r-0

4

Oc

t-0

4

Ma

y-0

5

De

c-0

5

Ju

l-0

6

Fe

b-0

7

Se

p-0

7

Ap

r-0

8

No

v-0

8

Ju

n-0

9

Ja

n-1

0

Au

g-1

0

Ma

r-1

1

Oc

t-1

1

Ma

y-1

2

De

c-1

2

Ju

l-1

3

Fe

b-1

4

Se

p-1

4

Ap

r-1

5

No

v-1

5

No. of projects Under Impl. Vs Growth

No. of projects Under Implementation(Left) YoY Growth (Right)

46

48

50

52

54

Ju

l-1

3

Se

p-1

3

No

v-1

3

Ja

n-1

4

Ma

r-1

4

Ma

y-1

4

Ju

l-1

4

Se

p-1

4

No

v-1

4

Ja

n-1

5

Ma

r-1

5

Ma

y-1

5

Ju

l-1

5

Se

p-1

5

No

v-1

5

Ja

n-1

6

Ma

r-1

6

Ma

y-1

6

India's PMI

India's PMI

36

3

36

0

36

1

0

50

100

150

200

250

300

350

400

Ma

r-1

3

Ma

y-1

3

Ju

l-1

3

Se

p-1

3

No

v-1

3

Ja

n-1

4

Ma

r-1

4

Ma

y-1

4

Ju

l-1

4

Se

p-1

4

No

v-1

4

Ja

n-1

5

Ma

r-1

5

Ma

y-1

5

Ju

l-1

5

Se

p-1

5

No

v-1

5

Ja

n-1

6

Ma

r-1

6

Ma

y-1

6

USD

Bn

Total India's Foreign Exchange Reserves at

Highest level

Total India's Foreign Exchange Reserves

Source: Edel Invest Research

19

Auto Sales remain robust

-1,65,000

-95,000

-25,000

45,000

1,15,000

1,85,000

2,55,000

3,25,000

-10%

-5%

0%

5%

10%

15%

Ap

r-1

4

Ju

n-1

4

Au

g-1

4

Oc

t-1

4

De

c-1

4

Fe

b-1

5

Ap

r-1

5

Ju

n-1

5

Au

g-1

5

Oc

t-1

5

De

c-1

5

Fe

b-1

6

Ap

r-1

6

PC Sales

Total Monthly PC Units Sale (Right)

3MMA, YoY% Growth - Passenager Vehicle

-1,00,000

-60,000

-20,000

20,000

60,000

1,00,000

-28%

-21%

-14%

-7%

0%

7%

14%

21%

28%

Ap

r-1

4

Ju

n-1

4

Au

g-1

4

Oc

t-1

4

De

c-1

4

Fe

b-1

5

Ap

r-1

5

Ju

n-1

5

Au

g-1

5

Oc

t-1

5

De

c-1

5

Fe

b-1

6

Ap

r-1

6

Ju

n-1

6

CV Volume Monthly Sale

Total Monthly CV Units Sale (Right) 3MMA, YoY - Total CV (Left)

-30,000

-10,000

10,000

30,000

50,000

70,000

-20%

-10%

0%

10%

20%

30%

40%

50%

Ap

r-1

4

Ju

n-1

4

Au

g-1

4

Oc

t-1

4

De

c-1

4

Fe

b-1

5

Ap

r-1

5

Ju

n-1

5

Au

g-1

5

Oc

t-1

5

De

c-1

5

Fe

b-1

6

Ap

r-1

6

Ju

n-1

6

MHCV Monthly Volume Sale

Monthly MHCV Units Sale(Right) 3MMA, YoY - MHCV (Left)

-47,000

-37,000

-27,000

-17,000

-7,000

3,000

13,000

23,000

33,000

-19%

-14%

-9%

-4%

1%

6%

11%

16%

Ap

r-1

4

Ju

n-1

4

Au

g-1

4

Oc

t-1

4

De

c-1

4

Fe

b-1

5

Ap

r-1

5

Ju

n-1

5

Au

g-1

5

Oc

t-1

5

De

c-1

5

Fe

b-1

6

Ap

r-1

6

Ju

n-1

6

LCV Monthly Volume Sale

Monthly LCV Units Sale(Right) 3MMA,YoY - LCV

Source: Edel Invest Research

20

EM and Developed Market Performance

Source: Edel Invest Research, Bloomberg; Data as of 30-Jun-16

21

Edelweiss Mid-Cap Marvels

S.No Stock Name CMP

(INR)

Mkt Cap

(INR Crs) P/E (X) EV/EBITDA (X) ROE (%)

(INR) (INR Cr) FY17E FY18E FY17E FY18E FY17E FY18E

1. Cholamandalam Finance 1,153 17,995 23.1 19.0 NA NA 18.5 18.6

2 NIIT Ltd. 79 1,355 14.7 10.8 14.3 10.8 8.6 12.9

3. Indo Count Industries Ltd. 880 3,466 10.1 8.4 1.1 0.6 43.2 37.5

4. Indian Terrain Fashions Ltd. 163 625 18.4 15.5 10.7 8.9 18.7 18.0

5. Jamna Auto Industries Ltd. 195 1,563 15.1 13.1 8.3 7.1 36.6 32.5

6. Natco Pharma Ltd. 603 10,647 20.2 23.7 13.7 15.1 33.2 21.8

7. Siyaram Silk Mills Ltd. 1,030 938 8.8 7.3 6.0 5.1 19.5 20.0

Note: Market CAP (Mkt CAP) and Current Market Price (CMP) were last recorded on 2nd August, 2016

22

Edelweiss Focus-12

S.No Stock Name CMP (INR)

Mkt Cap (INR Crs)

P/E (X) EV/EBITDA (X) ROE (%)

(INR) (INR Cr) FY17E FY18E FY17E FY18E FY17E FY18E

1. Aditya Birla Fashion and Retail Ltd 145 11,314 65.7 36.2 21.8 17.0 14.0 19.0

2. Dalmia Bharat Ltd. 1,438 12,831 26.3 19.3 10.0 8.5 10.8 13.1

3. Infosys Ltd. 1,084 2,49,276 16.0 14.1 10.7 9.2 24.2 26.2

4. Larsen & Toubro Ltd. 1,503 1,39,236 34.2 25.1 8.9 7.8 8.7 11.0

5. Maruti Suzuki India Ltd. 4,986 1,47,000 22.0 18.9 12.2 10.3 22.1 21.7

6. Tata Motors Ltd. 493 1,63,550 9.9 9.3 4.2 3.7 18.5 16.5

7. Repco Home Finance Ltd. 861 5,330 27.5 22.5 NA NA 18.4 19.0

8. Strides Arcolabs Ltd. 1,145 10,152 22.5 18.5 13.5 11.5 9.9 10.9

9. Sun Pharma Industries Ltd. 829 2,01,120 23.6 20.0 16.6 13.2 24.1 23.4

10. United Spirits Ltd. 2,390 34,655 66.4 41.2 34.1 25.4 26.0 31.3

11. Zee Entertainment Enterprises Ltd. 500 48,481 39.8 32.7 25.0 20.8 28.4 28.2

CMP as on 2nd August 2016

23

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