Market Twitter June 2017 – Narnolia Securities Limited

Inaugurated by
Mr. Ramesh Damani
June 2017
Mutual Fund Write-up by
Dhirendra Kumar (CEO-Value Research)
Inaugurated by
Mr. Ramesh Damani
MARKET twitter
- How long should SIP be?
- Focus on stock with sustainable growth
- Company Updates
- Index Returns
Investment Style -Key
to Successful Equity Investing

2
MARKET twitter | June’ 17
Content
02
05
06
INVESTMENT STYLE-KEY
TO SUCCESSFUL EQUITY
INVESTING
Shailendra Kumar
Chief Investment Officer of
Narnolia Securities Ltd.
HOW LONG SHOULD
SIP BE?
Dhirendra Kumar
CEO - Value Research
FOCUS ON STOCK WITH
SUSTAINABLE GROWTH
Pradeep Gokhle
Head - Equity Fund Manager
Tata Mutual Fund
INVESTMENT STYLE-KEY
TO SUCCESSFUL EQUITY
INVESTING
03
MUTUAL FUND WRITEUP
-BY DHIRENDRA KUMAR
CEO-VALUE RESEARCH
05
BANKS 09-12
COMPANY UPDATES
HDFC BANK
KNRCON
LT
STATE BANK OF INDIA
13-33
DAILY INVESTMENT TREND
34
NIFTY CONSTITUENTS
Quarterly /
Yearly Performance
35
FORECASTING PRICES OF
NIFTY & BANK NIFTY
36
ECONOMIC CALENDAR &
IMPORTANT EVENTS
37
INDEX RETURNS
38
CORPORATE QUARTERLY
RESULTS - JUNE 2017
39

3
Investment Style-Key to Successful
Equity Investing
Market is hovering around 9700 levels. The Time –In- The -Market Strategy
that was discussed in the last edition is here for a Test.
Shailendra Kumar
Chief Investment Officer of
Narnolia Securities Ltd.
Market is hovering around 9700 levels.The Time –In-
The -Market Strategy that was discussed in the last
edition is here for a Test. Market is at the threshold
of another immediate high or will rest here for a
while is the question that is haunting most of the
investors. To be invested with the market at these
times requires a strong conviction over the concept
of Time- In The market.
Market is never the same at all times. Flavor, Likings
and disliking of market change. We as investors
should chose a style of investing and stick with it.
It is difficult to outperform market in the long run
if we keep changing our style of investment based
on market cycles. We may be following Time in the
market philosophy but Style drift is Timing inside
Time-In the market strategy.
There could be many kinds of investment style-
based on Dividend Yield, Size, Sector, Growth
Parameters, Value parameters, event driven, Micro
Caps or Hi caps etc. Idea is to pick a style which
matches your temperament and have conviction on
it.
In a research Paper- ‘Staying the course..’ by Keith C.
Brown, Professor at University of Texas, it has been
”Market is never the same at all times. Flavor, Likings and disliking
of market change. We as investors should chose a style of investing
and stick with it. It is difficult to outperform market in the long run if
we keep changing our style of investment based on market cycles.
We may be following Time in the market philosophy but Style drift is
Timing inside Time-In the market strategy.”
Before we develop the confidence to remain Time
In, I would repeat our findings that we discussed
earlier- that world over, across 23 countries for 20
years, Equity Indices have earned a CAGR higher
than fixed income (except Brazil and Italy, where
also the underperformance has been marginal). A
good portfolio manager / Investment advisor helps
us get an alpha over the benchmark returns and that
may be compounded to handsome returns for us
as investors. And if you attempt market timing the
chances of making 20% -30% less return than simple
buy and hold is very high.
To follow the Time-In theory we need to have
confidence on the theory. What should give us the
confidence to remain invested at such perplexing
times? This will be when we have conviction over our
style of Investment.
established that there is a high correlation between
Style consistency and Performance Sustainability.
The key takeaway from his research are-
• a negative relationship exists between portfolio
style consistency and portfolio turnover
• a positive relationship exists between a fund’s
style consistency and the future actual and
relative returns it produces, and
• a positive relationship exists between the
consistency of a portfolio’s investment style and
the persistence of its performance over time.

4
In fact, we also opine that Investor not being aware
of his or her specific style leads to unintentional
style drift that in turn leads to inferior relative
performance.
There are two types of Investment style which are
most common in terms of fundamental analysis-
Value and Growth. Most of the successful styles are
a combination or extremes of these styles. Value
style means buying companies with high return
ratios- like High Return on Equity, High Return
on Capital Employed or High Free cash Flow. It
basically depends on the stability and growth of
Balance sheet of a company. Growth Style means
betting on a company where growth in Profitability
is expected, like there is improvement or positive
change in the operating drivers of the company,
the revenues are increasing or Profits / Margins are
growing.
If we assume the Dow Jones Industrial Index since
1995, each of the above style has outperformed
the Index in a period. For eg, 1997-2000, it was a
growth period, 2000-2005 was a growth Era, 05-
07 was again growth Era , 2007-15 was period for
value investing, 15-17 was a blend era and again
post 2017 is a phase of Growth Style companies
outperforming indices.
The point is, every style outperforms for a period
and then does not do that good in other period. But
as various empirical researches suggest changing
style never helps in terms of absolute or relative
performance. So the key is to pick a style and go
with it.
Coming to the near term market structure the way
outstanding open interest of Nifty Put options has
kept supporting and driving this market higher for
last 4 months is unprecedented. But thinking this a
new normal could prove very costly later on though
at least for now that possibility is not there.
Last week RBI did not cut rates though drastically
reduced inflation target is perplexing. Cutting risk
weightage to housing loan now as real estate prices
have cooled off (more time correction) is pragmatic.
One of the major global developments recently was
Saudi Arabia, Egypt, the United Arab Emirates and
Bahrain cutting their ties with Qatar. The nations
accused Qatar of meddling in their internal affairs
and backing terrorism. Question is whether Qatar
will decide to disrupt the production cutback deal of
OPEC and creates another meltdown in commodity
prices triggered by crude is a major issue for the
market going forward. In another development,
the European Central Bank (ECB) kept interest
rates unchanged in its monetary policy meet and
indicated that the ECB similar to US FED is aiming
to end its ultra-easy monetary policy.
We are currently trading at 20.1 times FY18 E EPS.
The growth for FY18 is expected at 14% for FY18.
Considering the favorable changes in the economy
and business environment and also considering
the overwhelming Mar 2017 quarterly results,
the growth for 2018E EPS may require positive
upgrades. Though having experience of negative
surprises in terms of earning growth over last three
years, street has yet not materially changed Sensex
EPS for FY18. Though, smooth GST transition (if
that happens so) and possibility of further rate cut
in the second half of the calendar year may trigger
upgrades going forward.
Happy Investing!

5
It's a question that vexes many mutual fund investors
once they buy into the concept of investing through a
Systematic Investment Plan (SIP): when you have a
lump sum to invest, then over what period should you
spread the SIP? Of course, for most SIP investments,
the question does not arise. The most common type of
SIP investment is a monthly one that goes out of a
monthly income.
However, occasionally, the SIP investor gets a large
sum of money at one go. It could be a bonus from a
workplace or it could be the proceeds from the sale of
some asset like real estate or it could even be your
retirement kitty. As every saver should know, investing
in an equity-backed mutual fund is the best way to get
great returns over a long period like five to seven years
or more. However, over shorter periods, equity funds
are dangerous. And when you invest a large sum in
one shot, then the risk is the highest. If the markets turn
turtle, you could lose 10, 20 or even higher percentage
of your invested amount very quickly. Since the
beginning of the Sensex in April 1979, of the almost
13,900 possible six-month periods, as many as 2,269
yielded a loss worse than 20 per cent. If you just
happened to catch a period like that at the beginning,
then you would lose a large chunk of your capital right
before it even starts growing. In theory, you could
eventually recover, but in practice you would probably
panic and pull out your money, making your loss
permanent.
The antidote to this is a Systematic Investment Plan.
Spread out your investment at a monthly periodicity
over a certain period. Your entry price will be averaged
out and you will be saved from the risk of a sudden
decline. Moreover, you will end up buying more units
of the fund when the markets are lower, which will
further enhance the returns you will eventually get.
However, the vexing question is what is this 'certain
period' that I have referred to?
Last time, I wrote about the research project on historic
SIP returns that Value Research has carried out and we
How long should that SIP be?
Have a chunk of money
to invest? You should SIP
it, but for how long
a period?
saw how SIP were truly safe for about four years and
above. In this study, we found that on an average, if
you invest in an SIP over four years, then your risk of a
loss is negligible. It's also interesting that the risk of
loss and the chance of an outside gain are both higher
over short periods. Over longer periods, the good
times and the bad get averaged out and minima and
the maxima converge. Consider this, for a typical fund
with a multi-decade history, over all possible one year
periods, the maximum returns are 160% and the
minimum -57%. Over two years, this becomes 82% and
-34%. Over three, 63% and -18%. Over five, 54% and
4%, meaning never any loss. Over ten years, the
maximum is 30% and the minimum 13%. These are all
annualised figures. The trade-off is crystal clear – the
shorter the period, the higher the potential gain but
the worse the possible risk.
The straightforward answer from this data appears to
be that SIPs must last more than three years. And
indeed, if you seek zero risk of loss, then that is the
correct answer. However, for many investments, this is
too long. If you are getting an annual bonus from your
employer, then it would be ridiculous to spread it over
three or four years. On the other hand, if you have sold
some ancestral property and the sum realised will be
the core of your old-age income, then you need to be
extra cautious about the risk you take. In a case like
this, you would do well to forego some potential
income in order to ensure that you don't make a loss.
One elegant rule of thumb is that you could invest the
money over half the period that it has taken you to
earn it, subject to the maximum of four to five years. So
the annual bonus could be invested in six months,
while the ancestral property could take five years. It's
basically a way of linking risk to how significant that
sum of money is for you.
Dhirendra Kumar
CEO, Value Research
Powered by Value Research
One elegant rule of thumb to
invest a lump sum is to do an
SIP over half the period that it
has taken you to earn the
lump sum, subject to the
maximum of four to five years

6
‘Focus on stocks with
sustainable growth’
Pradeep Gokhale of Tata Mutual Fund is in charge
of the large-cap fund and an ethical-investing
fund. He shares his views on large-cap valuations,
four major trends in play and why he has low
exposure to the metals space.
Pradeep Gokhale
Head - Equity Fund Manager
Are large-cap valuations expensive in
historical terms?
Do more investment opportunities
come up with your growth-at
reasonable-price (GARP) strategy vis-
a-vis one or two years ago?
Over a 10-year period, your large-cap
fund has returned nearly 12 per cent
annually. Do you think returns of this
kind can be expected by investors
who are keen to enter markets now,
when Sensex has crossed 30,000?
Your large-cap fund has among the
lowest portfolio turnovers (32 per
cent). Are you a buy-and-hold kind of
fund manager?
Large-cap indices Sensex and Nifty are
trading at about 18.5x FY18 and 16x
FY19 EPS estimates. These valuation
multiples are above the long-term
averages but by no means are very
expensive or near peak. In fact, in a
relative sense, today, large-cap
valuations are lower than mid-cap
valuations on a P/E basis.
Relative to the last year, when Sensex
was near 24,000 levels, there are fewer
opportunities. However during the
last 12 months, the rally was led by
value stocks rather than growth stocks
leaving opportunities to apply the
GARP strategy. We are focusing on
stocks with more sustainable growth,
as market valuations have moved up.
India is an economy with high growth
potential. It is coming out of a
prolonged period of weak growth.
Many internal factors which impacted
growth such as high inflation, high
fiscal and current-account deficits have
been properly addressed and have
shown good improvement. We are
seeing some signs of improvement in
global growth as well, as witnessed in
trade and export data. We, therefore,
feel that investors with a long-term
horizon can make good returns from
equities even though the market is
trading at new highs.
We generally look at companies with a
medium-term view in terms of their
competitive position, expected EPS
growth, sustainability of growth,
management track record and
valuations. We make changes if our
investment thesis is not playing out or
if the stock is fully priced or if there are
better alternatives available.
Generally, we find higher quality
businesses in sectors such as
automobiles and auto ancillaries,
banking and financial services,
consumer staples and durables, IT,
pharma and utilities.
We follow an active fund-management
strategy and do take significant
positions away from the benchmark,
both in terms of stocks and sectors.
We see four broad trends playing out
in the economy.
1. Higher share of capital investments
by the public sector/PSUs as
compared to the private sector.
2. Formalisation of the economy due
to measures such as GST and
restrictions on cash transactions in
business. This can benefit the
businesses where currently the
share of the unorganised sector is
high.
3. Financial inclusion – a higher share
of savings flowing to the financial
sector as compared to real estate/
gold.
4. Higher growth in household debt.
Indian households are
underleveraged even when
compared to many emerging
economies and with rising
aspirations, the scope for retail
loan growth is high.
Across the large-cap space, which
sectors exhibit your ‘higher quality set
of businesses’ character?
Does your fund seek to maintain its
sectoral weightage within a tight
range of the sectoral allocation of its
benchmark index?
Can you share any new trends
prevailing in the market that you may
be considering to take advantage of?
What is the reason behind metals as a
sector not finding good space in your
portfolio?
Tata Ethical Fund is a multi-cap fund,
but its returns haven’t been greater
than, for example, the large-cap fund
you manage over the long-term.
Since banking and finance companies
are not part of an ethical fund, doesn’t
it begin with a handicap in the first
place?
The main value driver for metals is
international commodity prices, which
we find difficult to understand and
forecast. Also, many metal companies
have high debt levels. We have
invested in some metal companies
which are very low-cost producers and
have a strong balance sheet.
Tata Ethical Fund is a thematic fund,
which essentially invests in high-
quality growth companies with low
debt levels. They have good return on
capital employed and high cash-
generation ability. Over a complete
business cycle, such a portfolio gives
superior returns. Being a thematic
fund with sectoral investment
restrictions, you cannot strictly
compare it with diversified funds.
The ethical fund invests in several
high-growth sectors such as auto and
auto ancillaries, cement, capital goods,
discretionary consumption, oil and
gas, which are a play on economic
recovery and growth. The volatility in
such sectors is also much lower than
that in the banking sector.

7
All’s not lost
In spite of recent setbacks, short-term debt funds remain a good
parking place for your one-year-plus money
Taking stock today, short-term
income funds may not appear to
be the most attractive category of
debt funds to invest in. Falling
interest rates for the last three years
have resulted in much higher
interest rates from medium/long-
term gilt funds, income funds,
credit-opportunities funds and
other categories. Also, a few funds
in this conservative category have
taken exposure to lower-rated
corporate debt and have suffered
mark downs due to defaults and
downgrades.
But despite all this, short-term
income funds are a good parking
ground for your one-year-plus
money, especially if you don’t like
big year-to-year swings in your
debt returns.
In this month’s issue, we present
short-term income funds selected
not for their chart-topping returns
but for their ability to finely balance
risks with returns. We shortlisted
these funds for their very
conservative portfolios and low
credit risk, their tight rein on
portfolio duration and their ability
to deliver good returns with
relatively low expense ratios. We
have also run the Altman-Z check
on these funds. It helps determine
the risk of bankruptcy (and hence
default) in a company.
Aggregate data show that short-
term income funds managed one-
and three-year returns of 8.7 and
8.65 per cent on an average as on
May 31, 2017. This was for the
regular plans. Direct plans, with
their expense ratios 40–60 basis
points lower, managed over 9.2 per
cent. The total assets managed by
the funds were at `1.87 lakh crore
and the funds maintained an
average maturity of 2.38 years.
Analyst’s Choice
9.56
9.09
9.51
3-yr ret (%)
3-yr ret (%)
Rating
Rating
«««
Rating
««««
««««
AXIS SHORT TERM FUND
BIRLA SUN LIFE SHORT TERM FUND
HDFC SHORT TERM OPPORTUNITIES FUND
Short-term category vs CCIL T-Bill Liquidity Weight
Avg
-Avg
Risk grade
Avg
Risk grade
Risk grade
9.35
3-yr ret (%)Rating
««««
ICICI PRU ULTRA SHORT TERM PLAN
Avg
Risk grade
9.67
3-yr ret (%)Rating
««««
UTI SHORT TERM INCOME FUND
Avg
Risk grade
Category (%)
CCIL T-Bill
Liq Wt (%)
Expense ratio (%)
Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
22,000
19,000
16,000
13,000
10,000
3-yr ret (%)
9.35
3-yr ret (%)Rating
««««
SBI SHORT TERM DEBT FUND
Avg
Risk grade
Debt: Short Term CCIL T Bill Liquidity Weight
7,000
10.53 6.02 5.06 9.11 9.74 8.02 10.37 8.16 9.87 2.80
6.06 2.61 2.78 4.80 5.60 5.50 5.71 5.38 4.73 1.57
0.68 1.01 0.86 0.81 0.92 0.86 0.80 0.73 0.73 0.67

8
Risk & return
Value Research Analyst Picks
Returns (%)
Rating Regular Direct Expense Ratio (%) AUM Maturity
Scheme Name Regular Direct 1 year 3 year 1 year 3 year Regular Direct (` Cr) (yrs)
Axis Short Term Fund 8.56 8.70 9.31 9.56 0.85 0.25 6,441 2.10
Birla Sun Life Short Term Fund 9.20 9.40 9.31 9.51 0.29 0.19 17,773 2.62
HDFC Short Term Opp. Fund 8.54 8.90 8.70 9.09 0.36 0.21 9,788 1.54
ICICI Pru Ultra Short Term Plan 8.80 8.91 9.19 9.35 0.58 0.26 8,672 2.88
SBI Short Term Debt Fund 8.77 8.84 9.41 9.35 0.91 0.31 8,898 2.48
UTI Short Term Income Fund 9.61 9.13 10.12 9.67 0.84 0.37 9,803 1.90
Returns as on May 31, 2017; Portfolio related data as on April 30, 2017
Average
«««««
««««««««
««««««««
«««««««
«««««««
«««««««
AAA/A1+
AA & below
SOV
Cash equivalent
Term deposits
Unrated/others
0.06
4.80
16.32
22.12
56.10
0.60
61.2817.98
11.65
8.61
0.08 0.41
Credit-rating break-up (%)
Short Term
8.95
Credit
Opportunities
10.07
Income
9.75
Dynamic Bond
10.11
Liquid
7.84
Ultra Short Term
8.27
3-yr return (%)
Risk
0
1
2
3
4
5
7.5 8.0 8.5 9.0 9.5 10.0 10.5
Annual returns (%)
Credit Dynamic Ultra
Year Opp. Bond Income Liquid Term Short Term
2007 7.40 3.84 7.01 7.40 8.15 7.63
2008 7.80 10.13 14.20 8.29 10.53 8.71
2009 6.27 1.25 0.89 4.73 6.02 5.36
2010 4.98 3.40 4.61 5.17 5.06 5.27
2011 8.77 8.73 7.98 8.56 9.11 8.76
2012 9.81 10.41 10.09 9.30 9.74 9.48
2013 7.55 5.52 5.20 9.06 8.02 8.62
2014 11.63 14.02 12.89 8.96 10.37 9.24
2015 9.59 6.84 7.04 8.21 8.16 8.48
2016 10.50 13.41 11.84 7.51 9.87 8.56
2017* 3.58 1.43 2.24 2.55 2.80 2.55
* As on May 31, 2017
Short

9
BANKS
India at its decades of lowest credit growth, as per data by RBI.
How long this weakness in credit appetite is going to last?
Non-performing assets has increased by 5 times in just 5 years.
Are stressed assets at peak level or how much more are still left
to be recognized?
Transferring power from bankers to RBI- Will lead to fast
resolution of stress assets. Will this hurt banks autonomy in
lending and borrowing?
Credit Growth at its decades of low !
SFortnightly data by RBI on advances for Indian Banking shows
the credit growth at low of 5.1% in FY17.
“Why the credit growth was in its low of decade?
Does it mean that there is lack of credit appetite in Indian
Economy and growth may decline further? “
Answer to this question lies in some fact which can compel us
to think seriously about it. Data by RBI had not incorporated the
reasons for lowest credit growth this year.
Loans which were given to SEBs have been converted into bonds
under UDAY scheme to the tune of Rs 1.7 lakh crore. This alone
had impacted the loan book by more than 2%.
Apart from this there was repayment of loans linked to FCNR
deposits which got redeemed during December quarter which
has impacted the book to decline by around 75 bps.
Demonetization has also certainly impacted the credit growth
during second half of FY17.
Grappling with huge stressed assets in balance sheet, majority
of public sector lenders and some corporate private lenders
have applied conservative approached towards corporate
lending. Due to this some of corporate borrowers has resorted
to alternative channel of banking i,e bonds which is growing
with a healthy rate of 15%.
Adjusting for some of facts our calculation state the credit growth
will be more than 9% for FY17.

India at its decades of lowest credit growth, as per data by RBI. How long
this weakness in credit appetite is going to last?
BANKS RATING TARGET
YESBANK BUY 1936
Capital raised creates attractive valuation. Recent weakness -an
opportunity
HDFCBANK BUY 1725
Despite consistent healthy profitability and growth track record,
best is yet to come.
INDUSINDBK NEUTRAL 1480
With strong fundamentals and higher valuation, any dips in
price will give an opportunity.
AXISBANK BUY 560
Near-term pressure on profitability but strong retail liability
franchise give us confidence for mid-long term.
DCBBANK BUY 205
Fastest growing bank in small market cap. Aggressive expan-
sion will lead to better RoA in mid to long term.
VIJAYABANK NEUTRAL 98
Lowest stress assets among peers with improving recovery and
slippages but higher on valuation.
INDIANB NEUTRAL 360
Healthy capitalization with focus on retail banking. Low on
stress assets but high on valuation.
SBIN BUY 340
Relatively good quality of book among large players. Merger
with associates will give strong liability franchise and better
network coverage.

10
Nevertheless if we ignore these facts and go by RBI
data, then the main question which comes to our mind
is that- has the credit growth bottomed out for system?
Recently we interacted with management of various banks
under large, mid and small market capital during latest
result via concall and interviews. Their views on credit
growth in respective of their banks and industry were in
fact signals for strong growth going forward.
Management of HDFC Bank, the largest private lenders,
indicated that the best is yet to come in terms of loan
growth despite growing more than 19% in FY17. Yes
bank and Indusind bank is target growth of 25% each in
FY18.Public Sector- Indian Bank and Vijaya bank recently
declared its March result are also targeting for double digit
growth in FY18. Secondly there was huge capital raised by
some of the private banks and some has pipeline for it
to strengthen their core capital ratio to support the loan
growth. HDFC Bank despite strong capitalization position
plans to raise Rs 50000 Cr of perpetual debt instrument to
provide further strength to its Tier I ratio. Raising fund at
this point of time shows that management is confident of
strong loan growth going forward.
However most of public banks are struggling with huge
stress assets in their balance sheet due to which they will
be unable to use their full capacity, hence we are of the
opinion that the credit growth in FY18 will be supported
by private banks and to some extent few public banks.
But which are the sectors or area that will drive the
credit growth?
“Going by the recent interviews, results and Government
initiatives we analyze that credit growth will be supported
by both Capex and working capital loan demand. Under
capital expenditure we analyze credit demand to be
supported by areas like roads,cement,railways,renewable
energy, housing, commercial vehicles, consumer
durables, and rural demand. Commodity prices has also
picked up which will boost the working capital demand.
Despite low credit growth in system, listed private banks
has grown by 12.3%YoYin December quarter which shows
thecontinuationofgainingmarketsharefrompublicbanks,
while credit growth of public banks has declined by 2.2%
for the same period. As on December 2016 private banks
has gained the market share by 3% in a year to 28%. With
the weak capitalization and mounted NPA issue in public
banks, we analyze muted credit growth for most of the
public banks. Whereas relatively strong capitalization and
less stressed assets, most of the private sector banks are at
sweet spot to cash the opportunity for healthy loan growth.
“
Date 25-Mar-11 30-Mar-12 31-May-13 28-Mar-14 3-Apr-15 1-Apr-16 31-Mar-17
Food Credit 64,282 79,788 118,042 97,552 69,227 101,205 53,927
Non Food Credit 3,877,801 4,627,145 5,250,736 6,041,493 6,733,294 7,399,292 7,827,601
Bank Credit 3,942,083 4,706,933 5,368,778 6,139,045 6,802,521 7,500,497 7,881,528

11
Are the Non-performing assets at peak level?
Gross Non-performing assets of listed commercial banks has mounted to the level of Rs 7.14 Lakh Cr in December
quarter FY17 from Rs 4, Cr a year back as per our estimates, whereas Net non-performing assets has increased to 3.95
Lakh Cr from Rs 2.55 Lakh Cr during the same period. Net NPA ratio increased to 5.5% against 3.6% a year ago.
“Now the question arises are non-performing assets at peak level?
If not then much more stress assets is still to be recognized?“
To answer this, first we will have to know the genesis of such mounted stress assets in Indian Economy. Our analysis
shows that the bulky of stress assets were generated mainly from Iron & steel, cement, power and mining. NPA gener-
ated from these sectors were structural and operational in nature while some more NPAs were recognized due to
willful default in few accounts. Our analysis shows that banks have recognized most of the bulky stress assets during
last 5 quarters as directed by RBI in its AQR list. While assets quality issues continued to persist in FY17 but the pace
for incremental slippages has slowed down significantly for majority of banks. Gross slippages during 3Q FY17 were
Rs 69,800 Cr against Rs 1,84,900 Cr in 4Q FY16. Gross slippage ratio has moderated to 96 bps in 3Q FY17 against
high of 2.59% in 4Q FY16. In the latest result of Indian Bank, its management has indicated the GNPA ratio target of
below 5% in FY18 against current 7.5%.Most of the results by private sector banks has indicated towards normal level
of NPA going forward. However lately RBI found divergence in recognition of stress assets among banks from the list
provided under AQR which may impact slippages to rise in some of banks in coming 1 or 2 quarters. However on the
back of our analysis we found that most of the bulky stress assets have been recognized in the system and slippages
in FY18 would be significantly lower than that of FY17.
GNPA FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 3Q FY17
Private Banks 17,905 18,210 20,382 24,184 33,690 55,853 84,409
>> GNPA % 2.5% 2.1% 1.8% 1.8% 2.1% 2.8% 4.1%
Public Banks 71,047 112,489 164,462 227,264 278,468 539,956 629,871
>> GNPA % 2.3% 3.2% 3.6% 4.4% 5.0% 9.3% 11.5%
Total GNPA 88,952 130,699 184,843 251,447 312,158 595,809 714,280
>> GNPA % 2.3% 3.0% 3.2% 3.8% 4.3% 7.6% 9.2%
Source: RBI reported excluding foreign banks (3Q FY17 data -Narnolia research)

12
Is latest ordinance to empower RBI is the key for
fast resolution?
“Going forward profit after tax of most of PSU banks
and large corporate private lenders depends on fast
resolution of stress assets otherwise it will be most hit by
provisions due to ageing related NPA till FY18. Now fast
resolution of stress assets is the key for most of banks.
To speed up resolution process Government and RBI
have introduced a series of reforms in banking sector
like JLF, SDR and S4A but the result were not as per the
expectations as banks were unable to find the buyers for
the ownership. Apart from these reforms Government
passed Insolvency and Bankruptcy code 2016.
Government has also taken certain steps within steel
sector to improve its efficiency like intervention in terms
of minimum import price and anti-dumping duty on
imports, National steel policy that favors Indian Steelmak-
ers. We think this type of initiative will be more favorable
for economy and needs more sector specific decision to
combat stress assets.
However in the latest development, Government has
passed an ordinance which will empower RBI to issue
borrower specific direction to banks for tackling NPA
problem. Now RBI can issue instructions to banks to initi-
ate the resolution under the Insolvency and Bankruptcy
Code 2016. We see this ordinance as welcome step to
fasten the resolutions of stress assets as earlier to this,
slow decision-making process under PSU banks were
hindering the resolution of large stress assets. But the
basic question remains the same that how this new ordi-
nance will help to get bank’s money back from stressed
corporate borrower? How and when oversight commit-
tee will be formed by RBI? Is there chance of conflict of
interest between RBI and management of bank? How
much the haircuts would be taken? Answer to these
questions is uncertain as of now and will take much time
for clearance and we analyze that if resolution is delayed
than ageing related NPA will badly hit the PAT in FY18 for
big corporate lenders. Also one basic problem for PSU
bank will even persist in terms of low capitalization and
any delay or huge haircuts under resolution process will
again impact the capitalization. “

We maintain our positive stance on private banks as they
will continue to acquire market share from public banks
thus loan growth will remain healthy going forward. This
value migration from PSU to Private has more legs to go.
Continuation of investment in digitization has resulted
in controlled and declining operating expenses hence
cost to income ratio is improving. Private Banks have
comparatively much less stress assets against public
banks. Healthy capitalization ratio also helps to increase
the business going forward. However for many banks
valuation has run ahead of their fundamentals. But decline
in prices will give an opportunity. Our top picks are HDFC
Bank, Federal Bank, Yes Bank and Axis Bank. Apart from
this under public sector banks Indian bank and Vijaya
bank were our top picks based on retail business focus,
adequate capital, relatively low stress assets and higher
recovery than slippages.This tactical stance of ours helped
us ride the PSU banking rallies over last nine months. First
we recommended Indian Bank at Rs 100 and got neutral
near Rs 330 and recommended Vijaya Bank at Rs 48 and
now we have changed our rating to neutral for Vijaya Bank
at Rs 98. Both Indian Bank and Vijaya Bank are trading at
P/B of 1.0 and do not leave much on table in context of
current fundamental. At this point, we recommend Buy
only on SBI among PSU Banks as it has relatively better
quality of book and capital ratio than its peers. Merger will
be key monitorable for the bank.

13
HDFC BANK
Key Highlights of the report
• HDFCBANK remains one of the best in the industry with stable
performance and healthy growth of over 20% CAGR over a long
period of time.
• Strategically growing the business as per the growth of economy
and diversification of portfolio has paid with the finest return ratios
in the industry.
• Healthy CRAR of 14.6%, Tier I of 12.8% and CASA at 48% level
augurs well for strong growth opportunity and gaining the market
share from its peers.
• HDFCBANK has one of the best assets quality in the banking industry
with the GNPA ratio of just 1.05% and PCR at 69%.

• Healthy NII growth coupled with strong other income led the
profitability to grow by 18% 4Q FY17.
• HDFCBANK is currently trading at 3.5x P/B FY19 and we value it
(3.9x P/B, EPS growth 20% FY19) at Rs 1758 and recommend BUY.
Financials/Valuation FY15 FY16 FY17 FY18E FY19E
NII 22,396 7,592 33,139 39,009 45,302
PPP 17,404 21,364 25,732 30,313 35,887
PAT 10,216 12,296 14,550 17,281 20,809
NIM % 4.5 4.5 4.4 4.4 4.3
EPS (Rs) 40.8 48.6 56.8 67.4 81.2
EPS growth (%) 15.3 19.3 16.7 18.8 20.4
ROE (%) 19.4 18.3 17.9 18.3 19.3
ROA (%) 2.0 2.0 1.9 2.0 2.0
BV 245 285 347 386 451
P/B (X) 4.2 3.8 4.2 4.1 3.5
P/E (x) 25.1 22.0 25.4 23.3 19.4
Recent Development : Key Highlights of Result Update

• HDFCBANK reported strong growth of 27% in its operating profit
backed by cost control and healthy growth in NII and other income.
However increased provisioning resulted in 18% PAT growth YoY.
• Staff count reduce by 6k in 4Q FY17 and by 10K in latter half part of
FY17.
• Advances grew with the robust rate of 19.4% YoY and 12% QoQ
despite one time hit in previous quarter due to loan repayment
linked to FCNR deposits. Domestic loan was even stronger with
23.3% YoY. Domestic corporate loan book saw some traction with
gain in market share from other banks.
• Tier I capital of bank declined to 12.8% against 13.2% on FY16 due
to increase in risk weighted assets.
• Slippages ratio was 1.5% in which around Rs 250 Cr was related to
RBI dispensation. Provision coverage ratio was 69% against 70%
QoQ.
HDFCBANK remains one of the best in the industry with stable perfor-
mance and healthy growth of over 20% CAGR over a long period of time.
Company Data
CMP 1699
Target Price 1758
Previous Target Price
Upside 3%
Change from Previous
52wk Range H/L 1582/1134
Mkt Capital (Rs Cr) 402344
Av. Volume (,000) 80
Share Holding Pattern %
4QFY17 3QFY17 2QFY17
Promoters 26.0 26.1 26.2
DII 12.9 15.0 14.3
FII 42.1 39.2 39.4
Others 18.9 19.7 20.1
At FY19 B/V, HDFCBANK is trading
below its historical trend
Stock Performance %
1Mn 1Yr YTD
Absolute 2.1 37.6 31.0
Rel.to Nifty 1.3 16.4 16.3

14
Quarterly Performance
Financials 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY % QoQ% FY16 FY17 YoY %
Interest Inc. 15,997 16,516 17,070 17,606 18,114 13.2% 2.9% 60,221 69,306 15.1%
Interest Exp. 8,543 8,735 9,076 9,297 9,059 6.0% -2.6% 32,630 36,167 10.8%
NII 7,453 7,781 7,994 8,309 9,055 21.5% 9.0% 27,592 33,139 20.1%
Other Income 2,866 2,807 2,901 3,143 3,446 20.3% 9.7% 10,752 12,296 14.4%
Total Income 10,319 10,588 10,895 11,452 12,501 21.1% 9.2% 38,343 45,436 18.5%
Ope Exp. 4,584 4,769 4,870 4,843 5,222 13.9% 7.8% 16,980 19,703 16.0%
PPP 5,735 5,819 6,025 6,609 7,279 26.9% 10.1% 21,364 25,732 20.4%
Provisions 662 867 749 716 1,262 90.5% 76.3% 2,726 3,593 31.8%
PBT 5,072 4,952 5,276 5,893 6,018 18.6% 2.1% 18,638 22,139 18.8%
Tax 1,698 1,714 1,820 2,028 2,028 19.4% 0.0% 6,342 7,589 19.7%
Net Profit 3,374 3,239 3,455 3,865 3,990 18.3% 3.2% 12,296 14,550 18.3%
Operating profit remained healthy despite tumultuous last quarter
• HDFCBANK reported strong growth of 27% in its operating profit backed by cost control and healthy growth in NII
and other income. However increased provisioning resulted in 18% PAT growth YoY.
• NII grew by 21.5% YoY due to strong loan growth and NIM expansion of 20 bps QoQ to 4.3%. NIM expansion was
mainly benefitted from spike in CASA ratio during demonetization period.
• Other income grew by 20.3% of which fee income registered growth of 17%YoY,whereas profit on sale of investment
saw 56% of growth YoY. Recovery from written-off accounts was strong this quarter with 31% YoY growth.
• Cost to income ratio declined to 41.8% against 44.4% a year back. Employee cost increased by just 3% YoY whereas
it declined by 8% QoQ on the back of reduction in staff count by 6k in 4Q FY17. As a whole in the latter half of the
year it reduced around 10k employee. However management continuous to invest in digital strategy to improve
productivity. Overall operating expenses grew by only 14% YoY.
• Provision increased by 90% YoY due to increase in standard assets provisioning and on account of NPA that received
RBI dispensation in 3Q FY17.
Profitability Metrix 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY(+/-) QoQ(+/-) FY16 FY17 YoY %
C/I Ratio % 44.4 45.0 44.7 42.3 41.8 -2.65 -0.52 46.4 45.6 -0.83
Empl. Cost/ Tot. Exp. % 32.7 33.2 34.0 34.9 29.7 -2.94 -5.14 33.6 32.9 -0.68
Other Exp/Tot. Exp.% 67.3 66.8 66.0 65.1 70.3 2.94 5.14 66.4 67.1 0.68
Provision/PPP % 11.6 14.9 12.4 10.8 17.3 5.78 6.50 12.8 14.0 1.21
Provision/Avg. Advances % 0.6 0.7 0.6 0.6 1.0 0.37 0.38 0.7 0.7 0.05
Tax Rate % 33.5 34.6 34.5 34.4 33.7 0.21 -0.72 34.0 34.3 0.25
Int Exp./Int Inc. (%) 53.4 52.9 53.2 52.8 50.0 -3.40 -2.79 54.2 52.2 -2.00
Other Inc./Net Inc. % 27.8 26.5 26.6 27.4 27.6 -0.21 0.12 28.0 27.1 -0.98
PAT/ Net Income % 32.7 30.6 31.7 33.8 31.9 -0.78 -1.84 32.1 32.0 -0.05
PAT Growth % 20.2 20.2 20.4 15.1 18.3 -1.96 3.10 20.4 18.3 -2.04
NII Growth % (YoY) 24.0 21.8 19.6 17.6 21.5 -2.46 3.94 23.2 20.1 -3.09
Operating Profit Growth YoY % 21.5 20.0 19.5 15.2 26.9 5.48 11.70 22.7 20.4 -2.30
RoE % 18.7 17.4 17.6 18.7 18.3 -0.36 -0.38 18.3 17.9 -0.31
RoA % 1.9 1.7 1.8 1.9 1.9 0.01 -0.03 2.0 1.9 -0.04

15
NIM expanded, benefitting from declining cost
• NIM improved from 4.1% a quarter back to 4.3% benefitted from increased CASA level. NIM remained at the higher
range of guidance given by management.
• Intensive competition in retail lending has resulted in NIM pressure but strategically mix of loan portfolio and
improved CASA has helped HDFCBANK to maintain its margin.
• Going forward we margin to sustain at current level due to improvement in CASA level despite reduction in yields
due to MCLR.
Margin Performance
Margin % 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY(+/-) QoQ(+/-) FY16 FY17 YoY %
Yield (Total Assets) 10.0 9.8 9.7 9.7 9.7 -0.38 -0.01 9.7 9.2 -0.47
Cost Of Funds 5.4 5.6 5.6 5.3 4.9 -0.55 -0.45 5.6 5.2 -0.44
NIM 4.3 4.4 4.2 4.1 4.3 0.00 0.20 4.5 4.4 -0.03
Other Income growth remained healthy
• Other income grew by 20% YoY given the pickup in fee income. Core fee income grew by 16.1% YoY, Forex and
derivatives segment grew by 26.1%
• Due to increase in G-Sec bond yield of around 18 bps during the quarter trading gain declined by more than 50%
QoQ as per the expectation.
Other Income Break Up 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY(+/-) QoQ(+/-) FY16 FY17 YoY(+/-)
Fees & Commissions 2,172 1,978 2,104 2,207 2,523 16.1% 14.3% 7,759 8,812 13.6%
FX & Derivatives 283 315 295 297 357 26.1% 20.0% 1,228 1,263 2.9%
Profit / (loss) on Investments 116 277 284 399 180 56.2% -54.7% 732 1,139 55.7%
Miscellaneous Income Includ-
ing Recoveries
295 237 219 240 386 30.8% 60.9% 1,033 1,082 4.7%
Other Income 2,866 2,807 2,901 3,143 3,446 20.3% 9.7% 10,752 12,297 14.4%

16
Healthy Balance sheet growth
• Advances grew with the robust rate of 19.4% YoY and 12% QoQ despite one time hit in previous quarter due to loan
repayment linked to FCNR deposits. Domestic loan was even stronger with 23.3% YoY.
• Advances growth was backed by healthy growth in retail assets which grew by 27% YoY as per regulatory
classification. However HDFCBANK also saw pick up in its domestic corporate lending by 20% YoY due to gain in
market share from other banks.
• Strong retail assets growth was spread over the book with 35% in personal loan, 43% in business banking, 27%
credit cards, 20% home loan, 24% auto loan and 31% CV/CE segment.
• Vehicle segment growth (auto, cv/ce, 2wheeler) picked upto 25% growth this year. Whereas, unsecured loan
contributed 32% growth in overall book. Share of unsecured loan is at 13.7% against 12.4% a year back.
• As per the regulatory classification, domestic retail loan book constitute 53% and wholesale segment is 47% against
51% and 49% a year back.
• It is notable that the deposits were impacted in 3Q FY17 due to FCNR redemption; however HDFCBANK saw
tremendous growth in deposits of 14% QoQ and 18% YoY.
• CASA registered healthy growth of 31% YoY backed by strong growth in both SA and CA of 31% eventually. This
increase in CASA was mainly attributed to demonetization exercise. CASA ratio now stands at 48% from 45% in 3Q
FY17.
• Stable Assets Quality
• Assets quality remains intact for HDFCBANK this quarter. GNPA was flat on sequential basis with 1.05% and NNPA
was 0.33% against 0.32%.
• Slippages ratio was 1.5% in which around Rs 250 Cr was related to RBI dispensation. Provision coverage ratio was
69% against 70% QoQ.
• Assets quality of HDFCBANK remains one of the best in the industry. Going forward we are less concerned about
the assets quality given its portfolio mix towards secured retail loans and better rated corporate loan.

17
4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY(+/-) QoQ(+/-) FY16 FY17 YoY %
GNPA (Rs) 4,393 4,921 5,069 5,232 5,886 34.0% 12.5% 4,393 5,886 34.0%
GNPA % 0.9 1.0 1.0 1.1 1.1 0.11 0.00 0.9 1.1 0.11
NNPA (Rs) 1,320 1,493 1,489 1,564 1,844 39.7% 17.9% 1,320 1,844 39.7%
NNPA % 0.3 0.3 0.3 0.3 0.3 0.05 0.01 0.3 0.3 0.05
Slippages (Rs) 1,700 1,761 1,440 1,700 2,100 23.5% 23.5% 5,941 7,001 17.8%
Restructured Assets % 0.1 0.1 0.1 0.1 0.1 0.00 0.00 0.1 0.1 0.00
Specific PCR % 69.9 69.7 70.6 70.1 68.7 -1.27 -1.43 69.9 68.7 -1.27
Concall Highlights
• Provisons spiked due to incremental provisions on NPA related to dispensation provided by RBI in last quarter.
Standard assets provisioning also increased due strong assets growth.
• Will open 100 to 200 branch per year going forward as against 300-400 earlier.
• Corporate loan picked up in the quarter. Gaining market share from both public as well as private banks.
• The bank managed recoveries from about 25% of accounts that benefited from RBI dispensation in the prior quarter
• Slippage was at 1.5% excluding RBI dispensation of Rs 245 Cr.
• Floating Provisions were Rs 1248 Cr as on 4Q FY17.
• No ARC sale in this quarter.
• CASA ratio was higher due to some traction from capital market.
View and Valuation
We continue to like HDFC Bank given its strong fundamentals, steady loan growth, adequate capital, best in assets
quality, strong branch network and intensive digitalization initiatives. With all levers set, HDFCBANK is poised for strong
business growth from the expected upturn in economy. Continuation of strong loan growth has resulted in gain of
market share from its peers. Due to intensive investment in digitalization and slow down in employee expenses, we
expect productivity to improve further and hence will result in cost reduction. Increase in CASA during demonetization
period will help NIM to sustain at current levels despite reduction in rates due to MCLR. With the healthy capitalization
ratio of Tier 1 at 12.8% we expect RoE in the range of 19%-19.5% and RoA of 2% in FY19. HDFCBANK is currently
trading at 3.5x P/B FY19 and we value it (3.9x P/B, EPS growth 20% FY19) at Rs 1758 and recommend BUY.

18
KNRCON
• KNRCON has clocked 63% YoY revenue growth to Rs. 482 Cr ahead
of our estimate. Strong execution of orders received in previous year
has helped to post robust growth in FY17.
• EBITDA and PAT margin are in line with our expectation in Q4FY17
and FY17. Management has guided EBITDA margin of 13.5-14.5%
going ahead.
• Considering the current market scenario management is open to
take HAM projects and expects to win Rs. 2000 Cr of new projects in
FY18 (50% from HAM and rest from EPC).
• Currently, stock is trading at 12.3x EV/EBITDA of FY18. We have
positive stance on the stock and we recommend “BUY” with target
price 230.
Financials/Valuation FY14 FY15 FY16 FY17 FY18E
Net Sales 835 876 903 1,541 1,760
EBITDA 126 126 153 230 259
EBIT 69 72 111 166 197
PAT 61 73 161 158 175
EPS (Rs) 4 5 11 10 12
EPS growth (%) 17% 20% 121% -2% 11%
ROE (%) 12% 13% 22% 18% 16%
ROCE (%) 12% 11% 13% 16% 16%
BV 34 38 48 60 71
P/B (X) 0.4 1.4 2.2 2.4 2.9
P/E (x) 3.4 11.0 9.9 13.5 17.8
Recent Development
• KNRCON has received appointment date for the Hubali hospet
project in Karnataka on 15th march and work has started on it.
Management has expects revenue contribution from Q1FY17.
• KNR has signed stake sell agreement with Essel group and presently
waiting for NHAI approval for the deal. Management of the company
expects approval in month time.
• Earlier Management is reluctant to take HAM projects but
considering the current market scenario, management is open to
take HAM and expects Rs. 1000 Cr of orders in FY18 via HAM mode.
• Management expects to complete Thiruvananthapuram Bypass and
Madurai -Ramanathpuram Section of NH-49 by January 2018 and
April 2018 respectively.
KNRCON has clocked 63% YoY revenue growth to Rs. 482 Cr ahead of our
estimate. Strong execution of orders received in previous year has helped
to post robust growth in FY17
Company Data
CMP 208
Target Price 230
Upside 11%
52wk Range H/L 215/104
Mkt Capital (Rs Cr) 2,823
Promoters 58.0 58.1 58.1
DII 42.1 41.9 41.9
FII 100.0 100.0 100.0
Others 18.9 19.7 20.1
Stock Performance %
1Mn 1Yr YTD
Absolute 1.0 11.6 86.2
Rel.to Nifty (2.4) 3.2 68.6

19
Sales 294 317 371 423 485 65% 15%
Other Operating In-
come
1.52 (0.47) 10.26 1.73 (3.01) -299% -274%
Company's share in JV - 14 8 43 - -100%
Net Sales 296 303 373 382 482 63% 26% 903 1,541 71%
Other Income 16 6 13 10 1 -94% -90% 32 30 -5%
COGS 203 217 271 277 349 72% 26% 606 1,115 84%
Employee Expenses 11 13 13 15 15 27% -2% 43 55 28%
Other Expenses 39 29 33 32 47 21% 44% 100 142 41%
Total Expenditure 253 259 318 325 410 62% 26% 750 1,311 75%
EBITDA 43 44 56 58 72 69% 25% 153 230 50%
EBITDA M% 14.5% 14.4% 15.0% 15.1% 15.0% 17% 15%
Depreciation 11 13 15 17 19 81% 17% 42 64 51%
EBIT 32 31 41 41 53 64% 28% 111 166 50%
Intreset 4 4 6 7 5 31% -18% 13 22 65%
Exceptional Item - - - 11 - - 11
PBT 44 32 49 45 48 11% 8% 129 163 26%
Tax (14) 2 5 3 (4) -70% -232% (32) 6 -119%
PAT 57 30 44 31 53 -7% 74% 161 158 -2%
PAT % 19.4% 9.9% 11.7% 8.0% 11.0% 18% 10%
Strong Execution capabilities led to robust revenue growth
• HKNRCON has posted strong top line growth of 59% YoY to Rs.482 Cr ahead of our estimate. We are expecting
slower execution because of delay in quarry approval on account of unstable political situation in state of Tamil
Nadu.
• For the full year FY17 KNRCON revenue clocked by 71% YoY to Rs. 1541 Cr as compared to Rs. 903 Cr a year back.
Strong ordering momentum in FY16 has helped to post robust revenue growth.
• EBITDA during the quarter grew by 65% YoY to Rs. 72 Cr as against Rs. 43 Cr in same period last year. For the full
year EBITDA stood at Rs. 230 Cr compared to 153 Cr.
• However, PAT during the Q4FY17 down by 7% YoY to Rs. 53 Cr compared to Rs.57 Cr on account of lower tax
reversal. In Q4FY16 KNRCON has tax reversal of 14 Cr on back of 80IA benefit.
• During the quarter KNRCON does not witness any new order and order book at the end of the Q4FY17 stand at Rs.
3762 Cr. Management expects to receive new orders in Q2FY18 and Q3FY18.
Healthy order book, 2.4x of TTM Order Book Break Up

20
Advances Performance
Margin % 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY(+/-) QoQ(+/-) FY16 FY17 YoY(+/-)
Gross Margin 76.10 73.80 79.20 78.90 79.80 3.70 0.90 69.1 78.3 9.20
EBITDA Margin 14.50 14.40 15.00 15.10 15.00 0.50 -0.10 16.9 14.9 -2.00
PAT Margin 19.40 9.90 11.70 8.00 11.00 -8.40 3.00 17.8 10.2 -7.60
EBITDA and PAT margin in line with Our estimate
• EBITDA margin has improved by 50 bps to 15% in Q4FY17 v/s 14.5% in same period last year on account of
operational efficiency.
• KNR has reported PAT margin of 11% in line with our expectation. PAT margin down by 840 bps YoY on account of
tax reversal of Rs. 18 Cr in Q4FY16.
• For the full year FY17 KNRCON’s EBITDA and PAT margins are in line with our expectation.
• Management exepects to maintain EBITDA margin in range of 13.5-14.5% going ahead.
Robust Revenue growth
EBITDA (cr) and EBITDA margin trend
Strong Debt to Equity
PAT (cr) and PAT margin trend

21
Investment Argument
• Healthy Order Book :- Order book at the end of the FY17 stands at Rs. 3762 Cr with 2.4x of TTM, which provides
revenue visibilities of more than two years. Strong growth in orders inflow in FY16 resulted into robust revenue
growth of 71% in FY17. Management is expecting to receive Rs. 2000 Cr of new orders which gives us confidence
of healthy revenue growth in FY19. Smooth progress of current order book ensures the 14% revenue growth in
FY18 and management expects to complete couple of projects ahead of its schedule time line.
• Strong Debt to Equity :- Superior execution capabilities have resulted into combatable Debt to Equity position.
Now, management is ready to take up HAM projects and expects to win Rs.1000 Cr of new orders in FY18 via HAM
mode. KNRCON’s strong debt to equity position will help to leverage its balance sheet and help to take up HAM
projects in bigger way. Currently KNRCON’s debt to equity is 0.15x and it will remain in the same range going
ahead(without considering HAM projects).
Concall Highlight
• HKNManagement has guided for Rs.1700-1800 Cr and Rs.2000 Cr of top line in FY18 and FY19 respectively
• Company target to win new projects worth of Rs.2000 Cr. Management expect order inflow from Q2FY18. Out of
which Rs.1000 Cr of orders from HAM projects.
• Unexecuted portion of Arcot Villupuram project is 30%.
• Tax Rate in FY18 will be around 7-8% and 15% in FY19.
• FY20 will attract full tax rate.
• KNR has received appointment date on Hubli Hospet road project in Karnataka and work has started from 15th
March 20147.
• Gross debt as on 31st March 2017 on standalone books is Rs.144 Cr and out of this 120 Cr loan from promoter of
the company.
• Rs. 100 Cr of capex is requires in FY18 and FY19 each.
• Except Chittagong ORR project in Bangladesh project all other projects are progressing well.
• Unexecuted portion of Chittagong ORR project is around 200 Cr (KNR Share)
• Management expects to complete Thiruvananthapuram Bypass in January 2018 and Madurai Ramanathpuram ij
April 2018
• KNR has received Rs. 21 cr of arbitration award in Q1FY18. Which will directly contributes 75-80% in EBITDA.
• Till date KNR has invested equity of Rs. 397 Cr in Walayar BOT and Rs. 52 Cr in Muzaffarpur Barauni BOT toll project.
Need further equity of Rs. 25 Cr in Muzaffarpur project.
• Toll collection on Muzaffarpur will go upto 17 lakh/day post 100% CoD.
• Other Income will be in range of 25-30 Cr going forward.
• KNR has signed share purchase agreement for sell of equity stake in PKIL and PKHIL, presently KNR waiting for NHAI
approval and expects to complete transaction in a month time period.
View and Valuation
KNRCON has outpaced all the infrastructure development players in terms of revenue growth in FY17. KNRCON has
clocked 71% YoY top line growth in FY17 on account of strong execution of orders received in previous year. All the
projects are progressing well, which gives us confidence of better revenue growth in FY18. Earlier Management is
reluctant to take HAM projects but considering the current market scenario, management is open to take HAM (Hybrid
annuity model) projects and expectation of healthy order flow from it with strong debt to equity position will help to
grow KNRCON going forward. We expect 14% YoY revenue growth in FY18 and 11% EPS growth. Currently, stock is
trading at 12.3x EV/EBITDA of FY18. We have positive stance on the stock and we recommend “BUY” with target price
230.

22
LT
• KInfrastructure, Financial Services and and IT business lead to
revenue growth of 12% YoY in Q4FY17.
• Higher provision at L&T Financial Holding and impairment of sea
woods and Hazira yard depressed EBITDA. EBITDA margin down by
190 bps YoY in Q4FY17.
• Strong opening order book ensures healthy revenue growth on 10-
11% in FY18 with improvement in EBITDA margin.
• Management expect 10-15% growth in order inflow in FY18.
• Considering the strong revenue growth along with margin and
working capital improvement we recommend “HOLD” with revised
target price of 1860.
Net Sales 92,005 101,975 110,011 121,562 135,069
EBITDA 11,336 10,465 11,075 12,642 14,047
EBIT 8,713 8,678 8,705 10,418 11,575
PAT 4,765 4,547 6,485 6,771 7,523
EPS (Rs) 51 49 70 73 81
EPS growth (%) -3% -5% 42% 4% 11%
ROE (%) 11.6% 10.3% 14.7% 13.1% 13.4%
ROCE (%) 7.1% 6.4% 7.2% 7.8% 8.3%
BV 440 473 474 538 553
P/B (X) 3.9 2.6 3.3 3.3 3.2
P/E (x) 33.5 24.9 22.4 24.3 21.9
Recent Development
• The construction arm of L&T has secured orders worth of 5146 Cr
across various business segments on 30th May 2017. These orders
are over and above of 2613 bn of order book at the end of the
year.
• Power Transmission & Distribution segment has secured major
orders worth of 2780 Cr from domestic and international markets.
• Another big order of 1292 Cr from Government of Gujarat for EPC
work for Sauni Yojana link 2 package.
• L&T has secured small orders of 221 Cr in smart world &
communication, 534 Cr in B&F, 319 Cr in Metallurgical and material
and rest from the ongoing jobs.
• Board of directors has approved issue of bonus share to the equity
share holders in the ratio of 1:2, which is the subject of shareholders
approval.
KNRCON has clocked 63% YoY revenue growth to Rs. 482 Cr ahead of our
estimate. Strong execution of orders received in previous year has helped
to post robust growth in FY17
Company Data
CMP 1736
Target Price 1860
Previous Target Price 1780
Upside 7%
52wk Range H/L 1834/1295
RoE will maintain over 13%
Promoters - - -
Public 100.0 100.0 100.0
Total 100.0 100.0 100.0
Others 18.9 19.7 20.1
Stock Performance %
1Mn 3Mn 1Yr
Absolute 1.1 20.2 19.8
Rel.to Nifty (2.4) 11.8 1.8

23
Financials 4QFY16 1QFY16 2QFY17 3QFY17 Q4FY17 YoY % QoQ% FY16 FY17 YoY %
Sales 32,876 21,719 24,924 26,018 36,828 12% 42%
Other Operating
Income
- 155 98 269 -
Net Sales 32,876 21,874 25,022 26,287 36,828 12% 40% 1,020 1,100 8%
Other Income 145 302 470 257 399 175% 56% 9 14 55%
COGS 12,539 7,576 9,082 9,495 13,101 4% 38% 366 388 6%
Finance cost of Fin.
Services
3,429 3,420 3,437 3,497 3,500 2% 0% 50 54 8%
Employee Expenses 1,341 1,322 1,355 1,332 1,340 0% 1% 133 139 4%
Sub contracting 6,497 3,562 4,879 5,148 8,346 28% 62% 208 226 9%
Other Mfg. Con.Exp. 3,038 2,515 2,521 2,640 3,807 25% 44% 100 113 13%
Other Exp. 1,535 1,574 1,452 1,652 2,398 56% 45% 58 70 22%
Total Expenditure 28,381 19,969 22,725 23,764 32,492 14% 37% 915 989 8%
EBITDA 4,495 1,905 2,297 2,523 4,336 -4% 72% 105 111 6%
EBITDA M% 13.7 8.7 9.2 9.6 11.8 -14% 23% 10.3 10.1 -2%
Depreciation 424 465 460 722 723 70% 0% 18 24 33%
EBIT 4,070 1,440 1,837 1,800 3,613 -11% 101% 87 87 0%
Intreset 439 338 340 379 297 -32% -22% 17 13 -19%
Exceptional Item (49) - (402) - 281 1 1 28%
PBT 3,776 1,405 1,967 1,678 3,716 -2% 121% 80 89 11%
Tax 1,009 549 681 440 337 -67% -23% 25 20 -19%
PAT 2,590 494 1,513 812 3,405 31% 319% 45 65 43%
Higher provision at L&T Finance Holding and Impairment depressed EBITDA
• Total consolidated sales in Q4FY17 up by 12% YoY to 36828 Cr on back of strong growth in Infrastructure ( 9% YoY),
Financial Services (11% YoY) and IT business (8% YoY)
• LT has reported EBITDA of 4336 Cr down by 3.5% YoY. EBITDA was impacted due by 630 Cr of provision in L&T
Finance holding and 240 Cr of impairment in seawoods and Hazira Yard. EBITDA margin during the quarter stood
at the 11.8%, down 190 bps YoY.
• However, PAT has grown by 29.5% YoY to 3405 Cr as compared to 2590 Cr a year back. Higher other income and
lower tax has helped to post 8.2% PAT margin as against 7.1% (up by 110 bps).
Analyst Meet Highlights
• Management targeting 12% Revenue growth in FY18
• Order inflow during the Q4FY17 was 47300 Cr and 14300 Cr in FY17. Management expects 12-15% growth in FY18
• EBITDA margin will improve by 25 bps in FY18
• Working capital improved from 23% of sales at the start of the year to 19% of sales at the end of Q4FY17
• LT will focus submarine building through strategic partnership
• LT looking to sales some of the assets to improve RoCE.
• Companies aim is to grow at a 12-15% CAGR to achieve 2 tn sales by 2021
• Mgt. expects to pick up in Power business after two years once manufacturing picks up
• Sharp margin improvement in Hydrocarbon business from -1.7% to 9.8% in Q4FY17
• Heavy Eng. margin improved to 27.6% from 2.5% in Q4FY17 based on operational efficiency and closure of legacy
projects
• Order book at the end of the year stands at 261300 Cr (5% Up YoY) post cancellation of 18000 Cr of slow moving
orders. Recently LT has secured order worth of 5146 Cr across various vertical.

24
Order Book Break Up
Order Book 4QFY16 1QFY16 2QFY17 3QFY17 Q4FY17 YoY(+/-) QoQ(+/-) FY16 FY17 YoY(+/-)
Infrastructure 1,875 1,906 1,863 1,940 1,934 3% 0% 1,875 1,934 3%
Power 200 180 176 155 131 -35% -16% 200 131 -35%
Metallurgical 100 - - - - 100 -
Heavy Engineering 75 77 76 78 131 74% 68% 75 131 74%
E&A 25 26 25 26 26 5% 1% 25 26 5%
Hydrocarbon 150 206 201 207 261 74% 26% 150 261 74%
Others 75 180 176 181 131 74% -28% 75 131 74%
Total 2,500 2,575 2,518 2,586 2,613 5% 1% 2,500 2,613 5%
Strong Order Book led by Hydrocarbon and Heavy Eng
• LT ends the FY17 with orders of 2613 bn in hands, which is up by 5% YoY. Strong order inflow in Hydrocarbon and
Heavy Engineering helped to grow order book in FY17
• Order inflow is up by 9% and 4% YoY in Q4FY17 and FY17 respectively. Order inflow in Hydrocarbon and Heavy
Engineering increased 2x and 1.45x respectively in FY17.
• Order inflow in Infrastructure segment remained depressed during FY17. Order inflow was down by 5% YoY to 726
bn as compared to 767 bn a year ago.
• Strong Order Book : Order book at the end of the FY17 stands at 2613 bn, which is the 2.3x of TTM revenue. Strong
order book at the end of the year provides healthy revenue visibilities going ahead. Management has guided for the
10-12% revenue growth in FY18 with 25 bps improvement in EBITDA margin and it will be achievable considering
the healthy order book at the start of the year. LT expects 10-15% order inflow in FY18.
• Working Capital Improvement : Management’s continuous focus on working capital management has resulted
into lower interest outgo during the year. Interest cost has come down by 19% YoY despite growth in top line on
consolidated basis. Working capital has come down from 23% to 19% of sales in FY17 and management has guided
for 18% in FY18.
View and Valuation
LT’s continuous focus on improving RoE and its strategic five years plan to grow at 12-15% CAGR to achieve 2 trillion
sales by 2021 with improvement in EBITDA margin. Strong order book at the opening of the year ensures the healthy
revenue growth going ahead. We expect 10-11% revenue growth in FY18 and FY19 considering the current order
book and healthy order inflow. EPS will grow 4% and 11% in FY18 and FY19 respectively. We expect RoE to remain over
13% going ahead. Considering the strong revenue growth along with margin and working capital improvement we
recommend “HOLD” with revised target price of 1860.

25
SHREECEM
• SHREECEM to enter eastern India with two projects worth Rs 500 Cr
each. The company has targeted to reach a 33.6 MTPA capacity from
the current 23.6 MTPA by the end of 2019.
• Volume increased 11% YoY & 21% QoQ to 5.9MT, on the back of
capacity ramp ups in eastern India. Realization improve 14% YoY &
2% QoQ with increase in prices in its focus market, North.
• EBITDA for the quarter fell 4% YoY due to 42% spurt in freight &
forwarding expenses. Spurt in freight & forwarding expenses was
mainly due to higher freight cost for servicing the Bihar market as its
unit in that state was shut for 15 days.
• Deepening its rich in eastern region and price improvement in North
region will be a key positive for the company. Recommend BUY with
TP of Rs 19805.
Financials/Valuation FY14 FY15 FY16 FY17 FY18E
Net Sales 5,887 6,454 5,514 8,429 10,406
EBITDA 1,390 1,317 1,407 2,367 2,845
EBIT 840 392 579 1,152 1,665
PAT 787 426 1,143 1,339 1,768
EPS (Rs) 226 122 328 384 505
ROE (%) 17% 8% 17% 17% 17%
ROCE (%) 16% 7% 8% 14% 18%
BV/share 1,346 1,508 1,956 2,199 2,705
P/B (X) 4.2 7.1 6.3 5.6 6.3
EV/Ton (Cap-USD) 562 420 385 350 322
P/E (x) 16.0 22.0 22.1 21.2 13.8
SHREECEM to enter eastern India with two projects worth
Rs 500 Cr each
• Each new unit will have 2 MTPA capacity, limestone to be sourced
from firm’s Chhattisgarh plant.
• After North, SHREECEM is on the way to capture a large slice of
the pie in the eastern part of the country. The company has taken
2 Greenfield projects, one in Raghunathpur region in West Bengal
and the other near Cuttack in Odhisa.
• The investment needed for these units is Rs 500 Cr. The company
has already acquired 120-130 acres of land in West Bengal and the
deal to acquire 150 acres in Odhisa is underway.
• Commissioning of these units, expected to take place in late 2018,
will help the company take up its presence from one state to three in
East India.
SHREECEM to enter eastern India with two projects worth Rs 500 Cr each.
The company has targeted to reach a 33.6 MTPA capacity....
Company Data
CMP 17305
Target Price 19805
Upside 14%
52wk Range H/L 20560/12555
Av. Volume (,000) 2224
Improving Assets Turnover Ratio
Promoters 64.8 64.8 64.8
Public 35.2 35.2 35.2
Total 100.0 100.0 100.0
Others 9.6 8.7 9.7
Stock Performance %
1Mn 3Mn 1Yr
Absolute (9.0) 2.8 34.4
Rel.to Nifty (11.6) (2.5) 16.6

26
Net Sales 2,249 2,468 2,254 2,091 2,683 19% 28% 6,190 9,497 53%
Other Income 475 97 123 136 151 -68% 11% 673 508 -25%
COGS 154 178 88 144 216 40% 50% 453 627 39%
Employee Cost 127 133 138 131 135 6% 3% 370 537 45%
Other Expenses 380 388 361 379 451 19% 19% 1,020 1,579 55%
EBITDA 532 731 656 469 511 -4% 9% 1,407 2,367 68%
Depreciation 306 154 432 318 311 2% -2% 828 1,215 47%
Interest 29 28 29 41 31 9% -23% 76 129 71%
PBT 672 646 318 246 320 -52% 30% 1,176 1,531 30%
Tax 9 139 26 10 15 67% 47% 33 192 479%
PAT 669 508 290 232 309 -54% 33% 1,143 1,339 17%
• The company reported Net sales of Rs 2683 Cr, up 19% YoY and 28% QoQ driven by 11% YoY volume growth and
14% YoY realization growth.
• Volume increased 11% YoY & 21% QoQ to 5.9MT, on the back of capacity ramp ups in eastern India. Realization
improve 14% YoY & 2% QoQ due to increase in prices in its focus market, North.
• Cement revenue increased 25% YoY to Rs 2539 Cr in 4QFY17 as compared to Rs 2036 Cr in 4QFY16 whereas Power
revenue decline 3% YoY to Rs 412 Cr as compared to Rs 423 Cr in 4QFY16.
• EBITDA for the quarter fell 4% YoY due to 42% spurt in freight & forwarding expenses. Spurt in freight & forwarding
expenses was mainly due to higher freight cost for servicing the Bihar market as its unit in that state was shut for 15
days, higher freight cost in eastern units due to lower availability of rakes and due to increase in diesel cost.
• PAT for the quarter declined by 54% YoY to Rs 309 Cr due to lower other income but grew 33% QoQ. Other income
YoY declined by 68% due to higher bas effect. (Change in accounting as per IND AS), however, Other income grew
by 11% QoQ.
11% YoY volume growth led by capacity
ramp up in East.
14% YoY improvement in Realization due to
price hike in North.

27
Operating Margins impacted by higher costs
Margin % 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY(+/-) QoQ(+/-) FY16 FY17 YoY(+/-)
Gross Margin 93.1% 92.8% 96.1% 93.1% 91.9% -1% -1% 92% 93% 1%
EBITDA Margin 23.7% 29.6% 29.1% 22.4% 19.0% -5% -3% 26% 28% 3%
PAT Margin 29.8% 20.6% 12.9% 11.1% 11.5% -18% 0% 21% 16% -5%
Margins was impacted due to higher Freight costs and Power & Fuel costs. Freight cost/tonne increased 20% QoQ
mainly due to due to higher freight cost for servicing the Bihar market as its unit in that state was shut for 15 days.
Freight cost for the quarter stood Rs 1023 per tonne as compared to Rs 856 per tonne in the previous quarter. Petcoke
prices have also increased from $88 per tonne in the month of Mar 17 to $95 per tonne in Apr 17. Further, any increase
in Petcoke price can put cost pressure on the company. Power & Fuel cost for the quarter stood Rs 776 per tonne as
compared to Rs 609 per tonne in the previous quarter.
Capacity Expansion Plan : Focus in Eastern India
SHREECEM plans to expand from its Bihar base across the east, SHREECEM has undertaken construction of two
Greenfield projects; one in Raghunathpur region in West Bengal and the other near Cuttack in Odisha with 2 MTPA
capacity. Recently, in Bihar it scaled up its Portland Slag Cement plant to 3.6 mtpa from the previous 2 MTPA. As per the
Mgt of the company, the eastern part of the country is immensely underserved by the cement companies and has a 30%
growth potential over the immediate next few years. Alongwith investment of Rs 500Cr in above new units, It is investing
another Rs 700 crore to construct 2 new units near Raipur in Chattisgarh which will take up the current capacity from 2.6
mtpa to 5.4 mtpa. Another plant in Karnataka is underway. The total capital investment in FY18 will be Rs 2,000 crore.
As part of its expansion plans, SHREECEM has targeted to reach a 33.6 MTPA capacity from the current 23.6 MTPA by
the end of 2019.
Management Takeaways
• Average cement prices for FY18 would move higher by 3-4% less than inflation but in the short term, they could
move up or down dramatically. The prices would range in Rs 250-300 per bag but it differs from city to city.
• FY18 EBITDA/tonne would beat FY17 EBITDA/tonne because there would be 2-3% growth in EBITDA per tonne.
• Lower EBITDA margins in the East India led to a drag on EBITDA per tonne.
• FY18 volume growth will surely be similar to FY17 levels of around 11%.
• Power Business : The company is not very bullish on this segment because power capacity is a surplus in the country
and rates are coming down. So only expect to maintain power margins.
• For 1QFY18, expected volume is 5.5 MTPA.
View & Valuation
Aggressive capacity expansion plan will help company in gaining market share (targeted to reach a 33.6 MTPA capacity
by the end of 2019). Deepening its rich in eastern region and price improvement in North region will be a key positive
for the company. Going ahead, improvement in Cement prices will help in absorbing spurt in operating costs. Better
cost efficiencies, lower capital cost for expansion and planned capacity addition in next few years without leveraging its
Balance sheet makes SHREECEM one of the best Company in our universe. We remain convinced on cash generating
abilities of the company. Thus, we recommend “BUY” rating on the stock with the TP of Rs 19805.

28
Margin contraction led by higher costs.
Higher freight cost for servicing the Bihar
market due to shut down of unit.
Increasing Petcoke price can put pressure on the margins going forward.
15% YoY increase in Power & Fuel Cost due
to spurt in Petcoke prices.
PAT Margin remain flat during the quarter.

29
STATE BANK OF INDIA
• Despite of challenging environment SBIN has been able to report
the improved set of numbers in all parameters.
• Loan growth of 7.8% vs system growth of 5.1% signifies the
continuous gain in market share.
• With the healthy PCR at 66%, relatively lower GNPA of 6.90% and
healthy capitalization at 13.1%, SBIN remains one of the best large
lenders among PSBs.
• With the bulk of stressed assets recognised, assets quality is on
improving trend; however we have cautious view on merged entity.
• Strong liability franchise of CASA at 44% level will support the
margins where as strong network coverage augurs well for the
business growth.
• SBIN is currently trading at 1.3x P/B FY19, we maintain our target
price of Rs 340 and recommend BUY.
NII 55015 56882 61859 68045 74849
PPP 38913 43258 50847 52545 56849
PAT 13102 9951 10484 11580 17721
NIM % 3.1 3.0 2.8 2.9 3.0
EPS (Rs) 17.5 12.8 13.1 14.5 22.2
EPS growth (%) 20.3 -27.0 2.6 10.5 53.0
ROE (%) 11.0 7.2 6.8 7.0 9.2
ROA (%) 0.7 0.6 0.4 0.4 0.5
BV 165 176 190 207 230
P/B (X) 1.7 1.6 1.5 1.5 1.3
P/E (x) 16.0 22.0 22.1 21.2 13.8
Recent Development
• SBI posted the healthy set of performance in 4Q FY17. PAT grew by
123% backed by healthy NII growth of 18% YoY.
• Assets quality of SBI has shown the sign of improvement with GNPA
ratio at 6.90% against 7.23% QoQ whereas NNPA improved to
3.71% from 4.24% on sequential basis.
• Gross advances grew by 7.8% YoY which was more than the credit
growth of 5.1% of the industry.
• CASA increased by 24% YoY backed by healthy growth in saving
deposits which grew by 27.8%.
• Merged entity will be come under the list of top 50 banks globally
with 2nd largest physical network presence.
Despite of challenging environment SBIN has been able to report the
improved set of numbers in all parameters
Company Data
CMP 308
Target Price 340
Upside 10%
52wk Range H/L
Mkt Capital (Rs Cr) 315/166
Av. Volume (,000) 249905
Av. Volume (,000) 2224
SBIN is trading at its low end of P/B
Promoters 62.2 62.2 61.2
Public 18.8 19.7 19.6
Total 9.5 9.4 9.5
Others 9.6 8.7 9.7
Stock Performance %
1Mn 1Yr YTD
Absolute 9.2 71.0 26.5
Rel.to Nifty 3.4 19.8 15.3

30
Interest Inc. 42,831 41,594 42,319 43,926 47,393 10.6% 7.9% 163,685 175,231 7.1%
Interest Exp. 27,541 27,281 27,881 29,174 29,322 6.5% 0.5% 106,803 113,658 6.4%
NII 15,290 14,313 14,438 14,752 18,071 18.2% 22.5% 56,882 61,573 8.2%
Other Income 10,696 7,335 8,424 9,662 10,328 -3.4% 6.9% 28,158 35,749 27.0%
Total Income 25,986 21,648 22,862 24,414 28,398 9.3% 16.3% 85,040 97,321 14.4%
Ope Exp. 11,794 10,594 11,637 11,870 12,372 4.9% 4.2% 41,782 46,473 11.2%
PPP 14,191 11,054 11,225 12,543 16,026 12.9% 27.8% 43,258 50,849 17.5%
Provisions 13,174 7,413 7,897 8,943 11,740 -10.9% 31.3% 29,484 35,993 22.1%
PBT 1,017 3,641 3,328 3,600 4,286 321.3% 19.0% 13,774 14,856 7.9%
Tax (246) 1,120 789 990 1,472 -698.3% 48.6% 3,823 4,371 14.3%
Net Profit 1,263 2,521 2,539 2,610 2,815 122.8% 7.8% 9,951 10,485 5.4%
Healthy performance in tough environment
• SBI posted the healthy set of performance in 4Q FY17. PAT grew by 123% backed by healthy NII growth of 18% YoY.
• NII growth was backed by higher interest income in this quarter. Other income declined by 3% YoY but fee income
registered the growth of 5% YoY.
• Operating expenses grew by only 5% YoY signifying stringent control over the cost, hence cost to income ratio
improved by 182 bps YoY to 43.6%.
• Operating profit remained healthy at 13% YoY growth. Provisions declined by 11% YoY but remained elevated and
grew by 3% QoQ.
Profitability Metrix 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY(+/-) QoQ(+/-) FY16 FY17 YoY %
C/I Ratio % 45.4 48.9 50.9 48.6 43.6 -1.82 -5.06 49.4 48.0 -1.44
Empl. Cost/ Tot. Exp. % 58.9 59.1 58.9 60.1 50.5 -8.41 -9.67 60.2 57.1 -3.04
Other Exp/Tot. Exp.% 41.1 40.9 41.1 39.9 49.5 8.41 9.67 39.8 42.9 3.04
Provision/PPP % 92.8 67.1 70.4 71.3 73.3 -19.6 1.96 65.4 70.5 5.09
Tax Rate % -24.2 30.8 23.7 27.5 34.3 58.51 6.82 17.9 29.1 11.20
Int Exp./Int Inc. (%) 64.3 65.6 65.9 66.4 61.9 -2.43 -4.55 65.3 64.9 -0.32
Other Inc./Net Inc. % 70.0 51.2 58.3 65.5 57.2 -12.80 -8.35 49.0 58.1 9.09
PAT/ Net Income % 4.9 11.6 11.1 10.7 9.9 5.05 -0.78 12.3 10.8 -1.43
PAT Growth % -66.2 -31.7 -34.6 134.0 122.8 189.0 -11.2 -23.1 47.6 70.76
NII Growth % (YoY) 3.9 4.2 1.3 8.4 18.2 14.25 9.77 3.4 8.0 4.61
Operating Profit
Growth YoY %
14.4 20.1 9.3 30.7 12.9 -1.43 -17.76 11.1 18.3 7.21
RoE % 7.7 7.4 7.4 7.5 7.3 -0.49 -0.21 10.6 7.4 -3.21
RoA % 0.5 0.4 0.4 0.4 0.4 -0.05 0.00 0.6 0.4 -0.19

31
Improving Assets Quality, Slippages remained flat
• Assets quality of SBI has shown the sign of improvement with GNPA ratio at 6.90% against 7.23% QoQ whereas
NNPA improved to 3.71% from 4.24% on sequential basis.
• In absolute terms GNPA increased by only 4% QoQ.
• Slippage number remained flat QoQ and slippage ratio improved to 2.58% against 2.70% a quarter back. Out of
the total corporate slippages of Rs 7785 Cr, 70% slipped from watch list of the bank.
• Watch list assets declined to 1.6% as on FY17 from 2.3% in FY16. However watch list of merged entity as disclosed
by management is at Rs 32427 Cr which left us with cautious stance going forward.
• Restructured advances increased to 6% QoQ. While other stress assets like SDR is at Rs 4281 Cr and S4A is Rs 5935
Cr.
• Due to increased credit cost PCR increased to 65.95% against 62.87% QoQ.
CASA growth remained healthy, Advances growth gaining market share
• Gross advances grew by 7.8% YoY which was more than the credit growth of 5.1% of the industry, hence signifying
gain in market share.
• SBIN domestic market share in advances stands at 17.02% against 16.37% a year ago.
• Growth in advances was led by both domestic as well as foreign advances growth of each more than 7%.
• Advances growth was backed by 21% retail growth. Agri grew by 7.5%, SME grew by 3.4% and large corporate
grew by 3.59%.
• Retail advances growth was backed by 17% YoY growth in home loan, 21% YoY growth in auto loan and 34% YoY
growth in personal loan.
• The share of retail advances increased from 21.6% a year ago to 24.3% on FY17.
• Management disclosed the 84% of the new corporate loans are PSUs or A & above A rated companies which
remains one of the key positive points for the bank.
• The stock of A and above A rated corporate loans has improved from 65% a year ago to 72% in FY17 signifying
improving risk profile of the bank.
• Deposits also remained healthy with the growth of 18% YoY backed by excess liquidity in the system due to
demonetization drive.
• Domestic deposit market share of SBIN has increased by 38 bps to 18.05% YoY.
• CASA increased by 24% YoY backed by healthy growth in saving deposits which grew by 27.8% while current
deposits grew by 8.4%. Domestic CASA ratio stands at 45.58% against 43.84% a year back.
• Term deposits also registered the healthy growth of 15.65% YoY.
Excluding One-offs other income grew by 11%.
• Other income declined by 3% YoY due to non recognition of repatriation of surplus profits from overseas branches
which was recognised in the corresponding quarter previous year.
• Excluding all one offs item in both the quarter growth would have been around 11% YoY.
• Fee income grew by 5% YoY. Under fee income cross sell was robust with growth of 44.5% YoY, however loan
processing fee declined by 8.3% YoY. Trading income grew by 25% YoY, and dividend remained flat YoY at Rs 394
Cr while miscellaneous income declined by 40% YoY.

32
Non-Performing Assets
4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY(+/-) QoQ(+/-) FY16 FY17 YoY %
GNPA (Rs) 98,173 101,541 105,783 108,172 112,343 14.4% 3.9% 98,173 112,343 14.4%
GNPA % 6.5 6.9 7.1 7.2 6.9 0.40 -0.33 6.5 6.9 0.40
NNPA (Rs) 55,807 57,421 60,013 61,430 58,277 4.4% -5.1% 55,807 58,277 4.4%
NNPA % 3.8 4.1 4.2 4.2 3.7 -0.10 -0.53 3.8 3.7 -0.10
Slippages (Rs) 30,313 10,797 11,852 10,357 10,368 -65.8% 0.1% 64,198 43,374 -32.4%
Restructured Ast.(Rs) 39,055 36,551 36,570 34,628 36,634 -6.2% 5.8% 39,055 36,634 -6.2%
PCR % 60.7 61.6 62.1 62.9 66.0 5.26 3.08 60.7 66.0 5.26
Concall Highlights
• Other income declined by 3% YoY due to non-recognition of repatriation of surplus profit from overseas branches
which was recognised in 4Q FY16.
• There still remains lot of growth potential in home and auto loan segment
• 47% of the loans of associates are corporate and rest are retail.
• Gross NPA of merged entity as on 1st April is 9.11%. NNPA is 5.19% and PCR is 61.53%. Total market share of
advances and deposits is 21.16% and 23.07% respectively.
• Credit cost will remain elevated in FY18 and it will be much better in FY19.
• SBIN has Rs 1700 Cr of excess provision over the regulatory requirement.
• There is no material divergence in assets quality as per RBI directory.
• CRAR of merged entity is 12.85% and tier I is 10.05% as on 1st April 2017.
• Government holding of merged entity is 60.75%.

33
View and Valuation
Despite of challenging environment SBIN has been able to report the improved set of numbers in all parameters. We
like SBIN due to its improving risk profile of assets where the bank has shown 84% of the incremental loans towards A or
above A rated companies. With the healthy capitalization ratio and divestments in non-core assets dilution risks remains
on the lower side among its PSU peers. Strong liability franchise will continue to support the margins. Merged entity will
further expand the network presence of the bank. However cost related to merger is expected to increase the opex in
coming years. On standalone basis assets quality has shown impressive improvement in this tough environment. Watch
list has reduced significantly in 4Q FY17. But the risk lies in increased stress assets of merged entity with GNPA ratio
crossing 9% as on FY17. Credit cost is likely to remain elevated in FY18 but we expect much better scenario in terms of
credit cost and slippages in FY19. However the risk also lies in the uncertainty of merged entity. We maintain of target
price of Rs 340 and recommend BUY.
Advances Performance
4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17
Advances (Rs in Cr) 1300026 1280127 1337153 1391258 1463700 1416485 1433554 1447824 1571078
Adv. Growth YoY % 7.5 6.8 10.5 12.9 12.6 10.7 7.2 4.1 7.3
>> Growth QoQ % 5.5 -1.5 4.5 4.0 5.2 -3.2 1.2 1.0 8.5
Deposits Performance
4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17
Deposits (Rs in Cr) 1576793 1613545 1634115 1671416 1730722 1782371 1858999 2040778 2044751
Growth YoY % 13.1 13.7 10.9 10.7 9.8 10.5 13.8 22.1 18.1
>> Growth QoQ % 4.4 2.3 1.3 2.3 3.5 3.0 4.3 9.8 0.2
CASA (Rs) 637760 635895 651430 674303 717332 726766 755805 908536 890409
>>CASA Growth
YoY %
9.9 9.8 10.1 11.7 12.5 14.3 16.0 34.7 24.1
>> Growth QoQ % 5.7 -0.3 2.4 3.5 6.4 1.3 4.0 20.2 -2.0
CASA % 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4
CA % 32.6 33.4 33.7 34.0 33.6 34.6 34.5 37.8 36.4
SA % 7.9 6.0 6.2 6.3 7.8 6.2 6.1 6.7 7.2
Credit Deposit Ratio 82.4 79.3 81.8 83.2 84.6 79.5 77.1 70.9 76.8

34
Daily Investment Trend
FII MF
DATE EQUITY DEBT EQUITY DEBT
1-Mar-17 1034.07 203.64 240.40 5146.80
2-Mar-17 (97.21) 210.15 (168.90) 3235.10
3-Mar-17 24.21 (773.46) (419.90) 5613.40
6-Mar-17 1427.91 44.57 7.20 206.70
7-Mar-17 840.92 525.12 (848.00) 1363.00
8-Mar-17 888.73 205.91 (844.40) 2265.30
9-Mar-17 3572.73 141.02 304.30 2553.80
10-Mar-17 1937.16 102.89 632.90 6099.00
14-Mar-17 344.01 337.24 (162.60) 3607.20
15-Mar-17 4309.49 (9.21) 235.40 2111.90
16-Mar-17 1418.11 194.16 113.20 (364.70)
17-Mar-17 1424.24 3768.43 (286.60) 931.40
20-Mar-17 1600.02 336.22 57.80 (8374.10)
21-Mar-17 618.91 1255.91 (94.60) (4281.80)
22-Mar-17 1617.31 5126.93 (299.20) 3889.20
23-Mar-17 210.57 5045.10 (174.50) 3,251.70
24-Mar-17 1096.87 (537.56) 691.80 2140.20
27-Mar-17 583.62 914.73 (423.70) 5303.30
29-Mar-17 7351.95 6960.19 360.70 (28.00)
30-Mar-17 680.06 1032.90 1586.70 4055.50
31-Mar-17 442.78 532.57 1859.60 1360.30
3-Apr-17 3489.57 680.07 196.22 10714.33
5-Apr-17 584.40 5415.22 (476.57) 6745.99
6-Apr-17 481.12 3386.73 90.10 3591.36
7-Apr-17 440.37 1399.65 505.31 5048.33
10-Apr-17 (141.74) 745.94 435.18 4532.77
11-Apr-17 (635.79) 686.93 1141.90 3817.61
12-Apr-17 (724.78) (205.24) 1280.93 7644.19
13-Apr-17 (495.60) 1422.23 511.09 6282.02
17-Apr-17 (312.26) 1767.53 407.59 474.79
18-Apr-17 (67.27) 1480.04 803.62 1461.72
19-Apr-17 (812.15) 253.24 986.18 2330.88
20-Apr-17 (564.82) 598.91 450.39 1240.31
21-Apr-17 (109.24) 126.44 1077.46 2636.06
24-Apr-17 1250.68 204.21 848.38 (1335.91)
25-Apr-17 (226.89) 1783.08 658.13 2074.81
FII MF
DATE EQUITY DEBT EQUITY DEBT
26-Apr-17 325.98 (91.18) 743.27 (299.30)
27-Apr-17 (64.29) (184.56) 258.35 1014.36
28-Apr-17 (22.80) 894.51 1326.72 (2041.42)
2-May-17 (1113.53) (282.57) 561.70 4019.42
3-May-17 (333.24) 560.18 393.69 895.32
4-May-17 (93.47) 152.98 1216.45 721.46
5-May-17 (140.16) 746.94 316.65 331.04
8-May-17 (248.25) 1903.47 924.29 (1438.59)
9-May-17 (581.35) 1040.04 189.54 (4603.03)
10-May-17 (227.91) (13.04)
11-May-17 1364.92 116.21 (719.83) (4636.61)
12-May-17 1434.88 790.92 (293.96) 1393.92
15-May-17 916.05 1844.51 273.06 (2473.57)
16-May-17 384.73 2463.62 182.78 (4035.45)
17-May-17 1044.19 993.75 978.90 838.46
18-May-17 1162.98 2051.85 1141.29 (1014.47)
19-May-17 359.72 559.31 709.41 (231.71)
22-May-17 3172.65 678.89 415.85 5056.86
23-May-17 894.88 693.02 663.45 2093.32
24-May-17 (366.08) 1649.41 726.51 2132.61
25-May-17 358.76 13.29 287.57 4255.58
26-May-17 789.20 (206.71) 770.89 3343.42
29-May-17 (316.10) 1927.66 449.40 1582.67
30-May-17 (807.60) 292.38 662.13 1701.81
31-May-17 (171.77) 1165.60 (264.18) (405.05)
1-Jun-17 1131.84 760.60 463.82 5237.60
2-Jun-17 (450.81) 1159.25 588.16 2753.42
5-Jun-17 113.37 2600.91 114.69 (552.86)
6-Jun-17 (111.74) 364.84 (51.67) 2502.92
7-Jun-17 (3133.63) 787.74 328.49 1944.90
8-Jun-17 89.34 2723.99 977.47 993.41
9-Jun-17 2072.65 3336.64 470.39 259.50
12-Jun-17 (69.05) 3509.04 177.08 3543.74
13-Jun-17 (4.66) 116.87 329.00 815.11
14-Jun-17 4909.37 2212.08 238.23 145.34
15-Jun-17 86.11 763.94

35
Nifty Heatmap in Last 3 months (As on 31st May 2017)
MARUTI
19.87%
ICICIBANK
17.92%
HINDUNILVR
17.03%
HEROMOTOCO
16.25%
BPCL
14.28%
HDFCBANK
13.42%
ACC
13.21%
INFRATEL
12.49%
LT
11.0%
ITC
11.24%
EICHERMOT
11.13%
KOTAKBANK
10.16%
GRASIM
10.11%
M&M
10.11%
GAIL
9.83%
ASIANPAINT
7.24%
BHARTIARTL
6.14%
POWERGRID
5.40%
ULTRACEMCO
5.28%
AXISBANK
4.74%
TCS
4.72%
TATASTEEL
4.56%
HDFC
4.51%
INDUSINDBK
3.90%
WIPRO
3.84%
BANKBARO-
DA
2.95%
HINDALCO
2.90%
BOSCHLTD
2.58%
TATAMOTORS
2.21%
TATAMTRDVR
2.04%
AMBUJACEM
1.94%
AMBUJACEM
1.50%
BAJAJ-AUTO
1.44%
ADANIPORTS
-0.18%
HCLTECH
-1.20%
SBIN
-1.74%
NTPC
-3.49%
ZEEL
-3.87%
DRREDDY
-4.12%
ONGC
-4.32%
INFY
-4.42%
IDEA
-6.81%
YESBANK
-7.46%
COALINDIA
-10.29%
TATAPOWER
-10.35%
CIPLA
-12.92%
AUROPHARMA
-14.97%
TECHM
-15.06%
BHEL
-15.14
LUPIN
-19.67%
SUNPHARMA
-27.11
Nifty Heatmap in Last 1 Year ( As on 31st May 2017)
HINDALCO
90.69%
ADAN-
IPORTS
76.42%
MARUTI
73.27%
EICHERMOT
53.82%
TATASTEEL
50.95%
SBIN
40.67%
RELIANCE
39.97%
POWERGRID
38.63%
YESBANK
38.56%
YESBANK
38.44%
INDUSINDBK
34.26%
ICICIBANK
33.44%
ULTRACEMCO
30.02%
KOTAKBANK
29.40%
HDFC
26.84%
HINDUNILVR
25.80%
BANKBARODA
24.68%
HEROMOTOCO
20.86%
LT
19.49%
ASIANPAINT
16.89%
HCLTECH
16.82%
ZEEL
16.13%
BHEL
14.69%
NTPC
11.91%
GAIL
11.76%
TATAPOWER
9.83%
CIPLA
9.25%
BAJAJ-AUTO
8.69%
M&M
7.16%
ACC
7.06%
BHARTIARTL
5.73%
AMBUJA-
CEM
5.63%
BOSCHLTD
4.43%
TATAMOTORS
3.59%
AXISBANK
-0.22%
TCS
-0.89%
WIPRO
-1.82%
INFRATEL
-2.12%
INFRATEL
-8.46%
COALINDIA
-9.90%
ITC
-11.18%
ONGC
-16.01%
DRREDDY
-20.71%
LUPIN
-21.27%
INFY
-21.75%
BPCL
-24.26%
AUROPHARMA
-26.89%
TECHM
-27.82%
IDEA
-30.40%
SUNPHARMA
-34.24%
GRASIM
-73.49%
Nifty stock sector wise heatmap
Sector Wise Av. of 3 Month Return Av. of 12 Month Return
Energy 3.47% 12.79% 47.93%
Materials 0.40% 16.22% 32.90%
Industrials 6.03% 21.02% 27.22%
Consumer Discretionary 6.80% 28.48%
Consumer Staples 8.69% 24.92%
Health Care -11.17% -9.06%
Financials 6.73% 41.37%
Information Technology 1.17% -4.89%
Telecom 3.44% -1.61%
Utilities -1.50% 23.12%
Nifty Constituents :
Quarterly / Yearly Performance

36
Forecasting prices of Nifty & Bank Nifty
Technical Analysis with the help of Elliott Wave Technique /Principles
Nifty
Period View Starting strategy date Target Value Trailing Stop-Loss Remarks
Very short term Bullish/ Trend 24.05.17 9800 Lower SL 9495 1st Target 9700 Meet
Short term Bullish/ Trend 03.03.17 9800 2nd Rev Lower SL 9075 5th Tgt 9500 Meet
Medium term Bullish/ Trend 26.12.16 10000 5th Rev Lower SL 8712 4th Tgt 9500 Meet
Long term Bullish/ Trend 29.02.16 10000 5th Rev Lower SL 8537 2nd Tgt 9500 Meet
Bank Nifty
Period View Starting strategy date Target Value Trailing Stop-Loss Remarks
Very short term Bullish/ Trend 24.05.17 23900 3rd Rev Lower SL 23092 2nd Target 23500 Meet
Short term Bullish/ Trend 21.04.17 24200 4th Rev Lower SL 21396 5th Target 23500 Meet
Medium term Bullish/ Trend 16.02.17 24500 3rd Rev Lower SL 20753 4th Target 23500 Meet
Long term Bullish/ Trend 29.02.16 24500 5th Rev Lower SL 20088 3rd Target 23500 Meet
The Nifty has seen a continuous rise from 24th May and move towards our
2nd very short term target of 9800. Very short term rise continue follow
lower SL of 9495.
After Completion of Wave – c of Cycle Degree Wave 2. New Wave -3 or
wave B start from 6825.80. Subordinate wave 1 of Wave 3 or wave B most
likely to continue.
Chart 2: Nifty showing Leading Diagonal at Wave ‘C’ of Cycle Degree
Wave – 2 & showing Break out channel of leading Diagonal at Wave A of
Wave ‘C’ of Cycle Degree Wave – 2
Chart 3: Bank Nifty showing rising trend
continue, we maintain buy on every de-
cline, follow lower SL 23092 for the price
target of 23900.

37
Date India Europe US
15-Jun-2017
MPC Official Bank Rate Votes , Monetary Policy
Summary, Official Bank Rate, Asset Purchase Facil-
ity, MPC Asset Purchase Facility Votes.
Unemployment Claims, Empire State Manufacturing
Index, Import Prices m/m, Philly Fed Manufacturing Index,
Capacity Utilization Rate, Industrial Production m/m.
16-Jun-2017
Final CPI y/y, German WPI m/m , ECOFIN Meetings
BOE Quarterly Bulletin ,
Building Permits, Housing Starts , Prelim UoM Consumer
Sentiment , Labor Market Conditions Index m/m , Prelim
UoM Inflation Expectations , FOMC Member Kaplan
Speaks.
19-Jun-2017
CBI Industrial Order Expectations , German Buba
Monthly Report , Consumer Confidence.
20-Jun-2017
German PPI m/m , Current Account , Inflation
Report Hearings .
Current Account , Fed Monetary Policy Report .
21-Jun-2017
Public Sector Net Borrowing , German 30-y Bond
Auction.
Crude Oil Inventories , Existing Home Sales ,
23-Jun-2017
CPI m/m , Belgian NBB Business Climate , Com-
mon CPI y/y ,
New Home Sales.
26-Jun-2017 German Ifo Business Climate
Core Durable Goods Orders m/m , Durable Goods
Orders m/m.
27-Jun-2017
French Prelim CPI m/m , BBA Mortgage Approvals
, Italian 10-y Bond Auction , CBI Realized Sales.
S&P/CS Composite-20 HPI y/y , CB Consumer Confi-
dence , Richmond Manufacturing Index.
28-Jun-2017
German Prelim CPI m/m , French Consumer
Spending m/m , Spanish Flash CPI y/y , M3 Money
Supply y/y , Private Loans y/y.
Goods Trade Balance , Prelim Wholesale Inventories m/m
, Pending Home Sales m/m , Crude Oil Inventories , Bank
Stress Test Results.
30-Jun-2017
German Retail Sales m/m , German Import Prices
m/m , German Unemployment Change ,Current
Account , Final GDP q/q , Index of Services 3m/3m
, Revised Business Investment q/q , CPI Flash
Estimate y/y , Core CPI Flash Estimate y/y , Italian
Prelim CPI m/m.
Core PCE Price Index m/m, Personal Spending m/m ,
Personal Income m/m, Chicago PMI , Revised UoM Con-
sumer Sentiment, Revised UoM Inflation Expectations.
3-Jul-2017
Auto no, Nik-
kei Manufac-
turing PMI.
Spanish Unemployment Change , Italian Manufac-
turing PMI, French Final Manufacturing PMI, Ger-
man Final Manufacturing PMI, Final Manufacturing
PMI, Manufacturing PMI, Unemployment Rate,
Spanish 10-y Bond Auction, French 10-y Bond Auc-
tion, BOE Financial Stability Report.
Final Manufacturing PMI , ISM Manufacturing PMI, Con-
struction Spending m/m, ISM Manufacturing Prices , Total
Vehicle Sales.
4-Jul-2017
Construction PMI, PPI m/m, BRC Shop Price Index
y/y,
5-Jul-2017
Nikkei Servic-
es PMI
Spanish Services PMI , Italian Services PMI , French
Final Services PMI , German Final Services PMI , Fi-
nal Services PMI , Services PMI, 10-y Bond Auction.
ADP Non-Farm Employment Change , Final Services PMI,
ISM Non-Manufacturing PMI, Factory Orders m/m , Crude
Oil Inventories, FOMC Meeting Minutes.
6-Jul-2017
German Factory Orders m/m, French Trade Bal-
ance, ECB Monetary Policy Meeting Accounts,
Housing Equity Withdrawal q/q
Challenger Job Cuts y/y , Unemployment Claims, Trade
Balance, Natural Gas Storage.
10-Jul-2017
German Final CPI m/m, German Trade Balance,
French Industrial Production m/m, Italian Industrial
Production m/m,
JOLTS Job Openings , Labor Market Conditions Index
m/m, Consumer Credit m/m, BRC Retail Sales Monitor
y/y, RICS House Price Balance.
11-Jul-2017 CB Leading Index m/m.
Final Wholesale Inventories m/m, NFIB Small Business
Index, Federal Budget Balance, TIC Long-Term Purchases.
12-Jul-2017 IIP Data
French Final CPI m/m, Average Earnings Index
3m/y, Claimant Count Change, Unemployment
Rate, Industrial Production m/m, German 10-y
Bond Auction
Crude Oil Inventories , 10-y Bond Auction, Beige Book.
13-Jul-2017
Italian Trade Balance , BOE Credit Conditions
Survey
PPI m/m , Unemployment Claims, Core PPI m/m, Natural
Gas Storage, 30-y Bond Auction.
14-Jul-2017 WPI Data Trade Balance , Manufacturing Sales m/m.
CPI m/m , Core CPI m/m, Core Retail Sales m/m, Retail
Sales m/m, Capacity Utilization Rate, Industrial Production
m/m, Prelim UoM Consumer SentimentBusiness Invento-
ries m/m, Prelim UoM Inflation Expectations.
Economic Calender & Important Events

38
Index
Return %
1 month 3 month 1 year 5 year
Sensex 4.10 8.36 16.79 92.04
S& P CNX Nifty 3.41 8.35 17.91 95.39
C N X Midcap -3.67 7.17 32.91 126.11
EW Series Of Indices
All Share 0.63 6.84 24.44 99.90
Hi Cap 2.07 5.84 19.53 79.35
Mid Cap -2.25 8.96 33.34 139.04
Small Cap -1.85 10.20 40.67 191.91
Micro Cap -3.66 6.06 96.27 395.53
EW Sector Indices
Energy -2.49 4.69 47.93 80.62
Materials -1.55 1.84 32.91 55.86
Industrials -1.60 14.36 27.23 87.51
Consumer Discretionary 2.66 11.37 28.48 195.61
Consumer Staples 6.45 14.51 24.93 128.14
Health Care -9.13 -11.01 -9.06 117.31
Financials 1.34 12.68 41.38 131.28
Information Technology 7.86 1.27 -4.89 88.47
Telecom 0.80 -0.20 -1.62 32.55
Utilities -3.04 1.95 23.13 32.10
EW Style Indices
Top- 500 Growth -1.96 3.13 21.20 81.76
Top- 500 Blend 2.09 8.36 26.56 102.70
Top- 500 Value 0.34 6.64 16.88 64.55
Top- 1000 Growth -5.60 6.32 41.92 198.83
Top- 1000 Blend -3.24 6.32 63.65 338.26
Top- 1000 Value -4.79 8.05 43.06 120.76
EW Thematic Indices
EW India Consumer Opportunity Index 3.26 13.27 32.77 137.97
EW India Global Opportunity Index 0.91 0.00 2.16 80.61
EW India Global Cyclical Index -1.44 4.55 39.32 120.53
EW Industry Indices
Airlines -1.04 27.64 6.26 44.11
Auto Components 1.42 15.19 40.46 285.06
Automobiles 7.04 12.80 27.37 207.71
Building Products 4.84 22.05 59.27 208.84
Capital Markets 0.19 18.29 65.88 211.01
Chemicals 1.20 12.77 32.96 204.56
Commercial Banks 2.10 11.87 34.19 103.34
Computers & Peripherals 0.00 0.00 58.88 389.25
Construction & Engineering -1.13 16.03 25.61 96.58
Construction Materials -0.87 12.25 35.73 179.22
Consumer Finance 3.46 19.18 51.14 559.55
Consumer Services 2.66 13.53 19.73 62.76
Containers & Packaging -6.54 11.82 50.98 207.03
Diversified Financial Services -0.65 12.14 53.10 164.80
Diversified Telecommunication Services 0.80 -0.20 -1.62 32.55
Electrical Equipment -3.32 9.63 21.98 77.24
Energy Equipment & Services -10.71 -11.61 23.34 -10.05
Food Products -1.73 7.47 23.23 108.60
Household & Personal Products 6.71 14.70 19.77 164.35
Household Durables -3.86 8.83 23.58 317.11
Logistics -4.82 12.29 1.45 149.56
Machinery -1.61 11.85 36.41 147.63
Marine -10.19 4.14 18.20 17.05
Media -6.33 2.65 24.97 158.69
Metals/Mining/Minerals -3.72 -10.33 30.26 -6.82
Oil, Gas & Consumable Fuels -2.47 4.74 48.01 81.04
Paper & Forest Products 0.68 3.46 40.68 189.76
Pharmaceuticals -9.32 -11.41 -10.35 114.63
Real Estate -1.19 24.92 34.89 41.08
Retailing -6.30 -2.24 15.39 90.88
Software & Services 7.92 1.21 -5.04 88.65
Textiles, Apparel & Luxury Goods -0.15 12.13 30.70 145.03
Tobacco 11.64 18.89 33.60 102.41
Trading Companies & Distributors 6.10 20.30 65.91 144.76
Transportation Infrastructure -0.35 8.16 55.51 102.21
Utilities Industry -3.04 1.95 23.13 32.10
Index Return

39
Corporate Quarterly Results - March 2017
As on 30th June 2017 For Mar’16 Quarter Annual For FY17/CY16
Company Name
"Mkt Cap (Rs Cr)
as on
15th June 17"
"Sales"
(Rs Cr)
"PAT"
(Rs Cr)
"Sales
Gr (%)"
"PAT Gr
(%)"
3M India Ltd 15646 624 90 11 41
Aarti Industries Ltd 7482 834 74 12 7
ABB India Ltd 32024 2146 88 8 3
Abbott India Ltd 8958 731 42 8 (29)
ACC Ltd 30718 3663 211 25 (7)
Adani Enterprises Ltd 14386 12195 219 50 72
Adani Ports & Special 75103 2554 1164 37 27
Adani Power Ltd 10626 6352 (4961) -13 (523)
Aditya Birla Fashion & 13808 1643 16 15 (115)
Aditya Birla Nuvo Ltd 21738 4387 130 -31 (60)
Aegis Logistics Ltd 6735 1268 30 190 (6)
AIA Engineering Ltd 13385 645 115 11 (14)
Ajanta Pharma Ltd 13661 476 114 14 6
Akzo Nobel India Ltd 8921 782 72 18 38
Alembic Pharmaceuti- 9849 741 94 20 3
Allahabad Bank 5206 1361 111 7 (119)
Alstom T&D India Ltd 8645 1196 46 27 71
Amara Raja Batteries 14349 1527 99 31 (9)
Ambuja Cements Ltd 47109 6530 399 8 41
Apollo Hospitals 17916 1671 44 20 (42)
Apollo Tyres Ltd 13000 3589 127 21 (49)
Arvind Ltd 9802 2493 111 8 0
Asahi India Glass Ltd 6166 597 51 4 114
Ashok Leyland Ltd 27574 6618 476 11 (438)
Asian Paints Ltd 109809 4487 480 24 11
Atul Ltd 7361 781 63 18 (2)
Aurobindo Pharma Ltd 38238 3641 721 -1 28
Avanti Feeds Ltd 6192 699 84 51 169
Axis Bank Ltd 122147 4729 1225 4 (43)
Bajaj Auto Ltd 81282 5212 910 -1 (9)
Bajaj Corp Ltd 5549 204 53 -2 (3)
Bajaj Finance Ltd 77367 2461 449 37 43
Bajaj Finserv Ltd 66692 7043 535 12 3
Bajaj Holdings & 23585 180 563 48 (0)
Balkrishna Industries 14890 1003 137 15 2
Bank of Baroda 38721 3582 155 8 (105)
Bank of India 14560 3469 (1055) 9 (71)
BASF India Ltd 7071 1394 45 21 (43)
Bata India Ltd 6931 591 36 9 27
Bayer CropScience 16364 253 (52) -49 (417)
Berger Paints India Ltd 24401 1254 106 23 13
Bharat Electronics Ltd 37871 4227 791 35 7
Bharat Financial Inclu- 9833 368 (235) 12 (378)
Bharat Forge Ltd 27538 1205 208 22 26
Bharat Heavy Electri- 33899 10157 216 4 (71)
Bharti Airtel Ltd 145805 21935 471 -12 (69)
Company Name
"Mkt Cap (Rs Cr)
as on
15th June 17"
"Sales"
(Rs Cr)
"PAT"
(Rs Cr)
"Sales
Gr (%)"
"PAT Gr
(%)"
Bharti Infratel Ltd 69323 1605 597 13 (17)
Biocon Ltd 20304 919 128 -2 (62)
Birla Corporation Ltd 7108 932 59 6 (44)
Blue Dart Express Ltd 9970 682 27 8 (37)
Blue Star Ltd 6409 1391 35 22 134
Bombay Burmah Trad- 6410 61 5 12 (131)
Bosch Ltd 74547 2529 440 6 (10)
Britannia Industries 42808 2230 211 6 6
Can Fin Homes Ltd 8369 361 71 22 49
Canara Bank 21028 2708 214 14 (105)
Capital First Ltd 7031 752 70 35 48
Carborundum Univer- 6344 593 44 20 10
Castrol India Ltd 20312 882 179 3 4
CEAT Ltd 7527 1458 66 5 (33)
Central Bank of India 18965 1715 (591) 10
Century Plyboards 6816 540 56 20 38
Century Textiles & 12416 2261 37 5 (1701)
CESC Ltd 11697 1572 295 7 19
Chambal Fertilisers & 5126 1073 27 -24 (121)
Chennai Petroleum 5713 9486 171 64 (34)
Cholamandalam 17036 1216 221 7 14
Cipla Ltd 43206 3487 (62) 7 (33)
Coal India Ltd 158537 24780 2716 19 (36)
Colgate-Palmolive 29795 1177 143 8 (2)
Container Corporation 27695 1558 336 -2 10
Coromandel Interna- 12653 2302 (85) -23 (192)
Corporation Bank 6171 934 160 -6 (131)
CRISIL Ltd 13428 401 73 12 (7)
Crompton Greaves Ltd 5199 1710 (444) -8 378
Cummins India Ltd 25491 1318 156 27 (7)
Cyient Ltd 5696 972 77 19 17
D B Corp Ltd 6878 517 65 2 2
Dabur India Ltd 50908 1915 333 -3 0
Dalmia Bharat Ltd 21964 2504 208 33 81
DCB Bank Ltd 6457 221 53 30 (24)
DCM Shriram Ltd 5924 1709 156 32 143
Dewan Housing 14216 2375 2218 21 1069
Dish TV India Ltd 8544 719 (28) -10 (106)
Divis Laboratories Ltd 17047 1066 260 -3 (19)
DLF Ltd 34476 2225 143 -13 (168)
Dr Reddys Laborato- 44371 3632 338 -3 175
eClerx Services Ltd 5305 332 67 -3 (38)
Edelweiss Financial 17297 1929 170 30 40
Eicher Motors Ltd 78155 2128 412 39 15
EID Parry (India) Ltd 5784 3478 247 -21 7
EIH Ltd 7399 416 51 -1 119

Market Twitter June 2017 – Narnolia Securities Limited

Market Twitter June 2017 – Narnolia Securities Limited

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