HBJ Capital - Flash Back Report 2014

- A Follow-Up Research update on our Multibagger Stock Picks
Multibagger Flash Back Report
“ Specialists in discovering Multibagger stocks “

Content Index
• Wisdom from Investing Legends.
• Importance of Portfolio Management.
• Quality Long-Term stocks for your Portfolio. (Top-20 HBJ Ideas)
• Letter from Research Desk to Multibagger members.
• Spotting the BIG Multibagger Ideas (Special Feature on Ancillary Investing).
• HBJ Capital – Investment Track Record over the years.
• Flashback Report with Ratings of previous Picks.
• Quarterly Results Analysis of Multibagger Stocks.

Wisdom from the Legends

Importance of Portfolio Management
Profiting from Stock Ideas is different from identifying the Ideas. Even with good Ideas, its only a
solid capital allocation framework that will help you to grow your wealth.
So, while our Multibagger service will help you to identify good businesses- you need to learn to build
a good Portfolio to really profit from the Multibagger ideas.
Let’s learn to avoid some common capital allocation mistakes and build a better Portfolio :-
Small Cap and Mid Cap investing involves a fair bit of failures considering the unknowns present while investing
in a stock. Hence, once your understanding of the Idea becomes better overtime and your conviction levels
increase, Investors should have courage to average up on the stock overcoming their fixation on their old price.
While the average investor would like to Book Profits and not willing to book losses, the correct way to manage
your money is to book losses in the stocks where your initial Investment rationale has gone wrong (Don’t rationalize
your mistakes) and to invest in stocks which continues to surprise you positively with their quality.
Riding your winning horse is very important and in Small Cap ideas where you have identified a great business
very early, its extremely important to be patient to hold onto the stock through the entire lifecycle of wealth
creation. Winning Big in the stocks where you are right is important for any small cap focused Investor.

Importance of Portfolio Management
:-
• Need not invest in every Multibagger Idea from our stable
Investors need not invest in every Month's Multibagger stock. You must pick and chose the Ideas which
suit you. Investing in every Idea will get your Portfolio clustered with too many Ideas. Get in touch with our
associates or upgrade to our Model portfolio service to help you with proper capital allocation framework.
• For retail investors - having more than 20 stocks in their Portfolios is not desirable
Any Portfolio with more than 20 stocks would lack focus and it would be difficult for retail investors to
keep track on all their stocks. Wealth creation can’t be done with too much diversification.
• A balanced Portfolio and concentrated Portfolio are not mutually exclusive
Even with a less than 20 stock Portfolio, you can have a proper balanced portfolio with careful selection
of stocks across sectors. Risk can’t be reduced by just increasing the number of stocks, proper stock picking
combined with a rational capital allocation framework will help in build a good Portfolio with low risks.
• Overcoming Greed and Fear is important to allocate capital well
Markets oscillate between bad and good news which brings tremendous volatility to Small and Mid cap
stocks. Capitalizing on this volatility by having entry points will help Investors earn good returns.
• Art of averaging down in your high Conviction bets
Markets will tend to make a cheap stocks even more cheaper. Hence, if there is enough conviction on an
Idea – you must be ready to average down on good stocks where you believe market is making a mistake.

Long Term Core Portfolio Stocks (5+ Years)
Stock Industry
Biocon/ Poly Medicure Pharma
HSIL/ Cera Building Products
SCUF/ Indiabulls HFC Financials
Dhanuka/ Treehouse Small Cap Niche
PVR/ Kewal Kiran Entertainment/Consumption
Greaves Cotton Capital Goods
Persistent Systems/
EClerx
Technology (IT)
DB Corp Media
Ashiana Housing/ Godrej
Properties
Real Estate
VA Tech Wabag/ Sanghvi
Movers
Infrastructure
Atul Auto/ Balkrishna Auto & Ancillaries
CARE/ Astral Poly Others
Best Portfolio Stocks
for
Long term Wealth

From the Desk of our
Research Team
Dear Members of Multibagger Service,
With the election of New Government, most of our Bets have moved up substantially. In fact, a
lot of the quality Mid-Caps and Small-Caps have moved from depressing valuations to bubble
valuations in a short span of time. While a lot of these names are good businesses that can deliver
substantial returns over a 5+ year period, Investors need not put incremental capital into these stocks
as the valuations looks stretched at current levels.
Most of our Stocks have performed well from both Business perspective as well as Stock market
perspective. Incrementally, we are only recommending stocks that have a lot of in-built Operational
Leverage. With an upcoming Economic revival, we believe that the best returns would accrue to
companies that have assets built up already and would be sweating them better during this time. We
continue to be buyers in companies with Operational Leverage such as DB Corp, Coromandel
International etc.
We believe that there will be a strategic shift in our Multibagger recommendations going
forward. While we have been majorly recommending quality Small Caps with long growth runways for
the past few years, going forward – we would be recommending more stocks from a Quality Cyclicals
,

that are reasonably valued. The major reason for this shift is the huge valuations differential between
these buckets of stocks. The valuations in small companies with long growth runways is high with
most of these stocks quoting at over 35X forward earnings. While we are happy to own these stocks
through the Bull run, we are not happy to deploy Incremental capital in these Ideas.
Some of our recommendations even in the past year has been in Stocks that have had some
temporary issues but have structurally strong businesses. Valuations are reasonable only in pockets
such as these. We will continue to generate superior returns despite challenges. We would not go
down the route of Inferior Businesses, Balance Sheet Issue stocks, Bad Managements etc to perk up
our returns. We will continue to scout for Alpha in quality names across the board. We are not
dogmatic and are willing to analyze every opportunity that Market presents to us.
We strongly believe that Indian markets have been in a Bull Market since December 2012 and
there is a long way to go. There are triggers to this market in the form of Increased participation,
Interest Rate reversals, GDP growth improvements etc. We have continued to believe that Markets
and Economies operate in Vicious and Virtuous cycles. This makes most analysts undershoot and
overshoot on their projections consistently. This error occurs largely due to Anchoring and Recency
bias. Most Investors try to flow with the trend and wouldn’t like to make bets that vary widely from
the Consensus, leading to sub-optimal returns.
We as an Investment team consistently try to understand the Biases that affect our decision
making and try to find Institutional processes to overcome them. While we may not avoid each and
every bias, the very act of being conscious helps us to make better decisions. This discipline has
enabled us to take several Contrarian bets, the results of which are visible in our performance over

the years. We also believe that our Multi-Dimensional investing discipline allows us to perform well
irrespective of Market conditions. We would be happy to do Deep value Investing, Catalyst Bets, Net-
Net buckets, Cash Bargains, Quality at fair price, Secular Growth bets, Turnaround Ideas, Tactical
Cyclical stocks etc. While boxing yourself to a particular specialty does have its own benefits, we don’t
think Indian markets provide enough opportunities to try to search for bets only in focused boxes.
Ideas within specific buckets are few and far between, unlike Global markets.
While most of the successful Global investors have boxed themselves up, we believe that Indian
markets are shallow to offer such varieties to Investors. We don’t have a lot of Convertibles,
Warrants, Junk Bonds etc to focus ourselves. Indian Markets are broadly in-efficient only at the Small-
Cap and Mid-Cap level. Hence we have tried to focus our energies on this space. Within this space, we
are happy to be Multi-Dimensional with capabilities to bet across various Investment strategies. We
believe that this focus along with the flexibility to invest across Ideas gives us an edge.
With a strong focus on Small and Mid-cap stocks, we have internalized several processes to
evaluate and filter ideas better from a vast pool of stocks. Durability of our returns have also been
good as they have come from quality businesses. Our current strike is satisfactory but there is enough
room for improving it even further and with our strengthened framework, we are confident of
delivering much better returns over the next 3 years.
Our deep understanding of Indian Small cap and mid cap businesses makes us well positioned to
pick the right stocks. If we were able to go through an extremely tough phase for Indian Mid-Caps and
Small-Caps and still generate good absolute returns, we believe that our returns will only grow better
in a favorable macro environment (relatively) which we expect over the next 3 years.

In this Flashback report, we have also added a special article that mentions the importance of
searching for Multibagger Ideas in “Proxy/ Ancillary stocks”. We have also tried to identify a few Stock
Ideas that can be future Multibagger Ideas in that article. Investors can read through the article to
have a broader understanding about Investing in Ancillary ideas.
Most of our previous Ideas have moved into HOLD/ Accumulate on Decline, owing to the sharp
Re-rating in their prices. The number of BUY/ Strong BUY has declined substantially since the last
Flashback report. Most of our quality stocks would once again come under BUY list, incase there is a
decent Market correction going forward.
In our Model Portfolio and Funds that we manage, allocation to our CORE Portfolio Ideas still
stays the same. Since we already had a high Equity exposure of around 95% over the last 18 months,
the current rally has delivered strong absolute returns. We are currently neither BUYING nor
SELLING any of our shares. We believe that this rally has still a long way to go and our Portfolio is well
positioned to take advantage of the future environments. We believe that earnings growth in our
stocks would positively surprise investors and further re-rating is on the cards. We would continue to
maintain our high Equity exposure in our Portfolios and would exit from any stock only in case
of Irrational valuations (or) swap for better opportunities.
Regards,
[ Gokul Raj . P, Director & Head – Investments]

HBJ’s BIG Multibagger Winners over the Years

HBJ Investment SBU – Key Highlights
• Average Returns of our Multibagger Ideas (adjusted for Time & Quantity )
= 110%
• Strike Rate (Win : Loss Ratio) of Multibagger Ideas – Since Inception
= 93 : 7
• Portfolio/ Investment Fund performance (Since Inception)
• 1 Rs invested in HBJ Portfolio four years back is now 3.24 Rs. This
outperformance has come with far less Risk taking and much lower
volatility.

Flashback Special – Proxy/ Ancillary Stocks

Proxy/ Ancillary Multibagger Ideas

Spotting the Big Multibagger Ideas
Successful Investors agree that it’s important to focus on Investment process rather than Investment
outcomes. In Probabilistic fields with random outcomes such as Stock Market investing, only a consistent
Investment process focused on searching for favorable Odds can result in sustained Investment
success. Similarly, we believe that “Spotting BIG Multibagger Ideas” on a consistent basis requires a solid
scouting process and should not be viewed as an Out of the Blue event.
While there are over 5000 listed companies in India, not more than 1% (50 Stocks) of these deliver BIG
Multibagger returns. While detailed Bottom-Up analysis is the only way to zero in on such Ideas, we
believe that there are certain Market pockets in which Investors should effectively focus while scouting for
Multibagger Ideas. One of the most effective pockets with high probability for finding such Ideas is the
Proxy/ Ancillary companies that are favored by strong sectoral tailwind. While we will discuss about
spotting these Tailwinds later, let’s understand as to why it’s profitable to bet on Proxy stocks instead of
the Core Theme stocks.
Growth in housing has been a big theme over the past 5 years. In addition to structural factors such as
demographics, Nuclear families, Urbanization etc, the sustained high Inflation led to increasing Savings
diverted towards Real assets such as Housing. High Inflationary expectations combined with rising Asset
prices resulted in front ended Home buying, leading to strong tailwinds for the Housing market. For
Investors who were able to identify this Big Theme, the natural pockets to look out would have been good
Real Estate developers who can capitalize on the boom.
- Proxy/ Niche Ancillary companies favored by strong sectoral Tailwinds are good
pockets to find BIG Multibagger Ideas.. They are capable of providing much higher
Returns than Core Stocks..

The stock prices have a different story to tell. While prices of Real Estate developers went nowhere
during this period, quality Housing Ancillaries have been in a Big Bull Market delivering over 10X returns
over the past few years. Companies across the board from Housing Finance, Tiles, Sanitary ware, Paints,
Plumbing, Cables etc have delivered fantastic returns. Some of the big winners in this space include,
- Cera Sanitaryware – 1500% returns. (Oligopolistic Sub-Sector)
- Astral Poly – 2000% returns. (Technology Advantage – CPVC pipes)
- Gruh Finance – 1000% returns. (Focused Low cost model)
- Kajaria Ceramics – 1500% returns. (Market leader in Vitrified Tiles)
- Asian Paints – 500% returns. (Strongest Brand & Widest Distribution)
Even other stocks in this space such as HSIL, V-Guard, Somany Ceramics, Repco Finance, Finolex
Cables, Havells etc have delivered over 40% CAGR. That’s the power of quality Proxy/ Ancillary plays.
Let’s take another example to drive home the point. Assume that as an Investor during the 2009-10
phase, you had reasonable belief that the economy is up for revival and Automobile growth is set to
bounce back. While the conventional thinking would have set you to look into the Top Automobile
manufacturers such as Maruti (or) Hero Motocorp (that have delivered modest 15% CAGR returns), a
strategy to invest in quality Auto Ancillaries would have led to these BIG Multibagger Ideas.
Fact Box :
<< Did you know quality Housing/ Auto Ancillaries have delivered over >50% CAGR
Returns while Core Housing/ Auto stocks delivered ordinary returns !! >>

- Amararaja Batteries – 2500% returns. (Duopoly Sub-Sector)
- Wabco – 2000% returns. (Technology advantage – ABS Braking)
- Shriram Transport Finance – 500% returns * (Focused Low Cost model)
- Bosch – 400% returns * (Monopoly).
-Suprajit Engineering – 2400% returns (Lowest Cost Producer).
* – despite the 40%+ CAGR during the preceding 5 year period.
While majority (90%) of Ancillary stocks don’t have much pricing power and are dependent on the fortunes
of the core companies, these winners form a Niche 10%. There are a few qualities that are common
among all these Big Multibagger Ideas. Most of these companies are in sub-sectors with Oligopoly/
Monopoly characteristics (or) these companies have strong Moats in the form of Brands, Technology,
Distribution strength, Lowest cost producer etc. We can clearly see that Big Winners are across both B2B
& B2C Ancillary stocks.
Such Ancillary companies are able to deliver such out-sized returns compared to their core peers because
of Relative obscurity, Lower competitive intensity (Oligopoly sub-sectors) and cheaper Valuation
compared with Large Cap peers. It’s important to realize that a Braking System/ Battery Manufacturer can
have better growth rates and profitability than the Core Automobile manufacturer. These niche Ancillaries
are classic cases of Pick & Shovel plays (In the mad California gold rush, limited people who supplied
Pick & Shovels to miners earned better than the Gold Miners themselves).
We believe that the Big sectoral Tailwinds are visible and on your face in most cases. Even in subtle
cases, an Investor who is tracking related set of stocks can easily identify trends. If Investors are
conscious of Sectoral Tailwinds and their impact on businesses they track, they would be able to identify
such trends early. One of the key advantages of investing in Proxy/ Ancillaries is that, even if you invest

only after the Trend is extremely visible – you will still be able to make good returns. Investors looking
through the Prism of Ancillaries would also be able to find lot of “Adjacent Multibaggers” related to some of
their Winning picks and thereby make a string of Winning bets
Several Intelligent Investors are aware of Proxy investing and are capitalizing on the current
Manufacturing recovery through Niche FMIG (Fast Moving Industrial Goods – Refractories, Bearings,
Weldings) stocks and E-Commerce boom through Logistics stocks. Some important pointers (other than
usual bottom-up analysis) to keep in mind while Investing through Proxies is Opportunity Size (Niche Sub-
sectors face such issues), Co-Relation with Big Theme, Non-linear operational Leverage and Low
disruptive Industry structure (Current Business dynamics shouldn’t vary much).
Let’s Connect the Dots real-time to find where the Puck is moving :
Currently, there are two Big tailwinds that are clearly visible – Economic Recovery & new Infrastructure
Cycle. Economic recovery theme can be capitalized through leading stocks in Sub-Themes. Consumption
growth & Ad Cycle growth are directly linked to Economic recovery and DB Corp is a excellent play on
this theme. Similarly Economic recovery leads to an improved Credit cycle growth and helps a stock
like CARE Ratings deliver Non-Linear returns. Both these stocks have decent operating leverage,
generate good Free Cash Flows, have strong return ratios, distribute healthy Dividends and are available
at un-demanding valuations.
With the new Modi Government, everyone on the street is bullish on Infrastructure growth over the next 5
years. Instead of the regular bets on Power Producers, Equipment Manufacturers, Asset Owners,
Contractors etc, we shall identify the Niche Proxy/ Ancillaries that can benefit enormously from this
Infrastructure theme.

VA Tech Wabag – Technology advantage to capitalize on big Water Treatment theme. An Emerging
MNC with asset light business model and Good Management.
Sanghvi Movers – Monopolistic High tonnage Crane Rental Provider serving all Big Infrastructure
projects backed by a Deleveraging story on healthy operating cash flows.
IL&FS Investment Managers – India’s leading private equity investor in Infrastructure, Real estate
assets backed by a strong track record, Big Parentage and stable Top Management.
PTC India Finance – Focused Power Finance company with an unleveraged Balance Sheet, good
lending track record, robust disbursements and healthy Project Profile.
NMDC – India’s Monopolistic Iron Ore supplier and Lowest producer globally. Big buffer for
International price declines, growing Steel demand and Robust balance sheet are key positives.
We have been recommending these shares to clients over the past many months. While these
Ideas have given returns, they still have more potential. If the optimism generated by the new
Government is backed by strong actions on the Infrastructure side, we believe that these stocks
would be the most efficient way to play the Capital Investment recovery theme. Investors can read
the detailed Research reports on these Ideas in your Login page.

Ratings Standards
Scale (Best to Last in
descending Order)
More detailed explanation of these
Ratings
Great Stocks + Great Prices + Strong Potential
Good Stocks + Good Prices + Healthy Potential
Good/ Great Stocks but can wait for Correction,
considering the Sharp Run-Up since our Recommendation
Stocks which are of slightly lower Quality, but not to be
exited at current Lower Valuations.
They can be both Profit booked (or) Loss booked. Stock
with exit needs to be sold - sometimes because of Higher
Valuation or sometime Bad Performance.
Ratings will help in taking better Decisions

Top – 5 Disappointing Quarterly Results
Company Name
Bajaj Electricals
Mahindra & Mahindra Financial
Sanghvi Movers
Karur Vysya Bank
Honda Siel Power

Top – 10 Great Quarterly Results
Company Name
Ashiana Housing
Mayur Uniquoters
Astral Poly
VA Tech Wabag
PVR
Persistent Systems
Kewal Kiran
EClerx
CARE Ratings
Atul Auto

Stock Recommendations Snapshot
Rec. Date Stock Pick CMP
( Aug 05,2014)
HBJ – Rating
Jan’11 Cera Sanitary ware 1351 BUY
Apr’11 Astral Poly 692 Accumulate on Decline
August’11 Mayur Uniquoters 455 Accumulate on Decline
Sept’11 Dewan Housing Finance 353 Accumulate on Decline
Oct’11 HSIL 260 Accumulate on Decline
Jan’12 Biocon 461 Accumulate on Decline
Feb’12 Mahindra & Mahindra Financial
Services (MMFSL)
248 BUY
Note :- The monthly recommendations in which we have already booked profits (or)
losses are not present in our Flashback report.
New Clients can view all the OLD Multibagger reports in their LOGIN page.

Rec. Date Scrip CMP HBJ - Rating
Mar’12 Sanghvi Movers 165 BUY
Apr’12 Transport Corporation of India
Ltd (TCI)
204 Accumulate on Decline
Apr’12 Karur Vysya Bank 473 HOLD
May’12 PVR Ltd 624 Accumulate on Declines
May’12 Persistent Systems 1247 Accumulate on Declines
June’12 Greaves Cotton 113 Accumulate on Decline
July’12 Kewal Kiran Clothing Ltd. 1801 Accumulate on Decline
Aug’12 Ashiana Housing Ltd 166 Accumulate on Decline
Sep ‘12 Bajaj Electricals Ltd 272 HOLD
Oct’12 IL&FS Investment Managers Ltd 24.6 BUY

Dec’12 Redington India 95 HOLD
Jan’13 Eclerx Ltd 1316 BUY
Feb’13 NMDC 174 BUY
Mar’13 CARE 1219 BUY
Apr’13 Mahindra Holidays 287 HOLD
May’13 Bajaj Finserv 958 BUY
June’ 13 Atul Auto 623 Accumulate on Declines
July’13 VA Tech Wabag 1464 Accumulate on Declines
August’13 Indiabulls Housing Finance 402 Strong BUY
Sept’13 Balkrishna Industries 746 Accumulate on Declines

Oct’13 Dhanuka Agritech 417 Accumulate on Declines
Nov’13 NBCC 463 BUY
Dec’13 Godrej Properties 236 Strong BUY
Jan’14 Hindustan Media Ventures
156
Shift entirely to DB Corp
Feb’14 Treehouse Education
376
BUY
Mar’14 Shriram City Union Finance
1670
BUY
Apr’14 Gujarat Pipavav Port Ltd
147
HOLD
May’14 DB Corp
323
Strong BUY

Best Investment Package for the current Market Conditions
Medium Term Investment Opportunities

Quarterly Result & News Analysis of
Multibagger Recommendations

Cera Sanitary ware
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• Revenues during Q4FY14 stood at Rs.228.32Cr as against Rs.165.01 Cr registering
an increase of 38.37% YOY. Revenues were higher on account of volume growth in
Sanitary ware and Faucet businesses.
• The company’s PAT in Q4FY14 was at Rs.19.34 Cr as against Rs.13.93 Cr in Mar-13 a
increase of 38.79% YoY.
• Operating profit for the quarter ended Q4FY14 was at Rs.37.09 Cr as against
Rs.24.49 Cr in Mar-13 registering YoY increase of 51.48%. The growth in marketing
margins can be attributed to decline in raw material cost as a percentage of sales by
about 271bp YoY.
• Cera’s strong growth is also emerging from its recent Capacity expansion in its
Faucet division. Company is likely to benefit from expansion to its product portfolio.
CERA Sanitary ware expansion of product portfolio is likely to enable the company to
grow their topline by 25% in the medium term.
http://www.moneycon
Cera continues to be one of our High Conviction bets. Despite, the stock’s steep
rise of 600% since our initial recommendation. Cera is the first sanitary ware
company to use gas which saves cost. Further Cera is the first company to
launch twin flush model which reduces water needs of households
considerably. We continue to HOLD on to the stock in our portfolios. Investors
with minimal exposure to CERA can BUY Cera at current levels with a time
frame of 3-5 years.

Astral Polytechnik
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• In Q4FY14, company’s top line increased by 29.07 %(YoY) to Rs.337 Cr as compared
to Rs.265Cr in same quarter of previous fiscal. The top-line increase was due to
volume growth as well as pricing power
• Operating Profit in Q4FY14 was up by about 5.58% at Rs.51.10 Cr as against
Rs.48.40Cr in the same quarter of previous fiscal. Operating margins were higher
due to value added products.
• Net Profit decreased 4.79 per cent (YoY) to Rs.27.80 Cr in Q4FY14 as
compared to Rs. 29.2 Cr in Q4FY13.
Astral poly ropes in salman khan as brand ambassador.
http://www.thehindubusinessline.com/companies/salman-khan-is-brand-ambassador-for-pipes-maker-
astral/article6249275.ece
• Astral Poly continues to surprise us positively with strong operating results quarter
on quarter. Markets have taken a note of this amazing performance and has given its
due reward to the stock.
• We continue to like the quality of Astral’s business and also its growth potential.
We believe that the stock continues to be a Add on Decline stock where we would
like to increase our exposure strongly in the case of Markets providing us a better
entry point into the stock again.

Mayur Uniquoters
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• In Q4FY14, company’s top line increased by 25.84% YoY to Rs.118.85Cr as compared
to Rs.94.44 Cr in same quarter of previous fiscal. The company has been consistently
increasing its capacity which has enabled the company to grow its top line.
• Operating Profit in Q4FY14 was at Rs.27.81Cr as against Rs.21.23Cr in Q4FY13
registering an increase of 31%.The company is able to improve its margins post knitting
fabrics plant as it reduces rejection rate and support high quality fabric production for
exports.
• Net Profit increased 43.66% (YoY) to Rs. 18.57 Cr in Q4FY14 as compared to Rs.
18.57 Cr in Q4FY13.
• With the commencement of new knitted basic unit at Dodhsar the company is likely
to see volume growth and increase in capacity utilization which will drive growth in the
medium term. The entry of established investors such as Westbridge Capital, the stock
still has a lot of steam left. We continue to like the business and the company’s
management. Hence we would like Investors to BUY the stock on every dips. While the
BULK of rally is behind us, there is still decent returns left for a 5 year investor.

Dewan Housing
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• Dewan Housing recorded revenues of Rs.1416.12 Cr in Q4FY14 as against
Rs.1700.94 Cr in Q4FY13 registering a YoY de-growth of 16.74%.Revenues were
affected on account of lower disbursements.
• NII in Q4FY14 was at Rs.1288.53 Cr as against Rs.1602.3 Cr in Q4FY13 registering a
de-growth of 19.58%.
• PAT in Q4FY14 was at Rs.141.17 Cr as against Rs.196.94 Cr in Q4FY13 registering a
de-growth of 28.32%. The company would record be able to record higher growth
on account of focus on affordable housing segment in the Tier-II and Tier-III markets
across India.
See Dewan housing NIM steady at 2.8 – 2.9%-Kapil Wadhawan
http://www.moneycontrol.com/news/results-boardroom/see-dewan-housing-nim-steady-
at-28-29-kapil-wadhawan_1136151.html
The housing finance industry is expected to witness strong growth in the next 5
years due to increased affordability of the borrowers mainly propelled by demand
for affordable housing projects. The stock despite the run-up is still available at
decent valuations. The stock generally performs well during an up cycle. There is
room for both Earnings expansion and Valuation re-rating. The emphasis on smart
cities by the government in the budget is likely to give a fillip t the stock. With the
entry of prominent investors such as Rakesh Jhunjhunwala, the potential returns are
definitely higher.

HSIL
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• The Revenue for the quarter ended Mar’ 2014 was Rs. 617.30 Cr as against
Rs.494.69 Cr in Mar’ 2013 registering a YoY increase of 24.79%.The revenue growth
is due to strong brands in the product portfolio and distribution network.
• Profit after Tax for the quarter ended Mar ‘ 2014 saw a decline of 38.97% from Rs.
29.36 Cr to Rs.48.11 Cr in Mar’2013.
• The Operating Profit of the company in Mar’2014 was at Rs.106.84 Cr as against
Rs.80.13 Cr, a YoY increase of 33.3%.
Company’s sanitary ware division continues to perform strongly and is by far the
Market leader in the segment. The company’s premium products allows it to earn
significantly higher margins than its peers. The Company’s glass division also has
been showing some signs of turnaround. With the management’s guidance on the
de-merger of the two divisions over the next 3 years, there is a strong trigger for a
healthy value creation.

Biocon
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• Biocon Q4FY14 revenues were at Rs.537.57 Cr as against Rs.457.57 Cr an increase
of 17.48% YoY. Revenues during the quarter were higher on account of bio pharma
business which has shown a YoY growth of 17%.Growth was led by sale of Insulin in
emerging markets and Immunosuppressant's in the US.
• Operating profit in Q4FY14 was at Rs.133.28 Cr as against Rs.86.63 Cr an increase
of 53.85%.
• Biocon Q4FY14 PAT was at Rs.86.74 Cr as against Rs.38.29 Cr in Q4FY13 an increase
of 126.53%.
• Biocon is taking steps to re-organize the branded formulation verticals and aims to
drive synergies around key anchor brands and optimization of product portfolio in
CVS and diabetes segment. Biocon has been one of the best performing Pharma
stocks over the last year. The company’s strong operational performance coupled
with increasing recognition of its research capabilities is driving the stock higher.
Company’s strong research pipeline coupled with the inauguration of the company’s
Malaysian facility should drive the stock even higher going forward.

M&M Financials
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• In Q4FY14, company’s top line increased by 23.71per cent YoY to Rs.146.62 Cr as
compared to Rs.118.52 Cr in same quarter of previous fiscal.
• Operating Profit in Q4FY14 was at Rs.112.66 Cr as against Rs.91.48Cr in
Q4FY13registering an increase of 23.15%.
• Net Profit decreased 1.96per cent (YoY) to Rs.34 Cr in Q4FY14 as compared to Rs.
34.68Cr in Q4FY13.
M&M Financials provides finance for tractors in the semi-urban and rural markets
and has the highest number of branches among the NBFC’s. M&M Financials should
be a core portfolio stock of most Investors. The company has many years of growth
ahead of it. We believe that M&M financials is well positioned to capitalize on the
financial services opportunities in Rural India. While the valuations may look a little
pricey, we believe that the business quality allows us to still put a BUY rating on the
stock.

Sanghvi Movers
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• In Q4FY14, company’s top line decreased by 12.92 per cent YoY to Rs.68.55 Cr as
compared to Rs.78.72 Cr in same quarter of previous fiscal.
• In Q4FY14 company incurred a Net Loss of Rs.14.29 Cr as against Rs.7.01 Cr Net
Profit in Q4FY13.
• Operating Profit stood at Rs.5.46Cr in Q4FY14 as against 21.15 Cr in Q4FY13 a
decrease of about 74.18%.
• Sanghvi Movers is a patient bet and we would continue to monitor the stock
closely. At current point, the stock looks good from a medium term perspective
given government thrust on the Infra sector. Definitely the stocks would be one of
the best BETA plays in the current market. Sanghvi Movers definitely adds that
diversity to our Portfolio. We believe with a reducing Debt profile and a pick up in
the broader Investment cycle. the stock can deliver strong returns. With the likes of
Prashant Jain of HDFC Mutual picking up stake which is likely to provide further
trigger.

Transport corporation of India
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• In Q4FY14, company’s top line increased by 0.77 per cent to Rs.53.62 Cr as compared to
Rs.53.21Cr in same quarter of previous fiscal. Revenues were driven by freight, supply
chain and express segments which posted about 6-7% growth.
• Operating Profit in Q4FY14 was at Rs.35.51 Cr as against Rs.34.24 Cr in Q4FY13
registering a increase of 3.71%.
• Net Profit increased per cent (YoY) to Rs. 20.53 Cr in Q43FY14 as compared to Rs.
13.87 Cr in Q4FY13.
• TCI derives about 70% of its revenues from freight segment which is a low margin
business. However the company has ventured into the express and supply chain
segment which will improve its business prospects. The stock has performed
brilliantly over the past quarter. The biggest trigger for the stock has been the entry
of Market legend – Radhakishan Damani. With several smart investors accumulating
Logistics stocks as a proxy play for the growth of e-commerce, TCI is bound to do
well going forward too. The supply chain and war housing industry is expected to
grow 20-25% and TCI with 1 million own warehousing capacity is the foremost
player to benefit from the growth.

Karur Vysya Bank
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• The Total Income for Q4FY14 stood at Rs.1322.74 Cr as against Rs.1126.15Cr an YoY
increase of 17.46% .
• Net Profit recorded for Q4FY14 stood at Rs.119.59 Cr compared to Rs. 158.58 Cr in
corresponding previous quarter.
• Gross non-performing assets (NPAs) stood at Rs.279.18 Cr for the quarter ended 30
Mar2014.
KVB is likely to grow its loan book at a CAGR of 25% in the medium term with
emphasis on SME, Agriculture and personal loans which are high margin
segments with lower asset quality issues. With a cyclical recovery in economy,
KVB offers a good play on this theme. While we are uncomfortable with the
bank’s recent performance, the rebound in the economy will subside NPA
woes. Being an investor friendly bank it offers good rewards to long term
investors.

PVR
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• In Q4FY14, company’s top line increased by 98.79per cent YoY to Rs.288.96 Cr as
compared to Rs.145.36 Cr in same quarter of previous fiscal. Sales was higher due to
better occupancy, higher footfalls and box office revenues.
• EBITDA in Q4FY14 was at Rs.0.14 Cr as against Rs.(2.14)Cr in Q4FY13.
• Net Profit post taxes stood at Rs.7.1 Cr in Q4FY14 as against Rs.17.69 Cr a year ago an
decrease of 59.81% YoY.
Expect Cinemax circuit to contribute 23-24 million footfalls to PVR chain: Nitin Sood, PVR
http://articles.economictimes.indiatimes.com/2014-03-25/news/48559045_1_cinemax-
nitin-sood-pvr-ltd
• PVR with the Cinemax acquisition continues to dominate the Indian Exhibition
industry. With aggressive expansion plans, our Analysis shows that the Margins
would benefit with Economies of Scale.
• More importantly, PVR is well poised to become significantly large exhibition
company considering the opportunities in the sector and PVR’s operational strength.
Hence, while in the near term the stock may look overvalued – we believe that the
stock is a great Long Term pick and hence add on any Declines.

Persistent systems
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• In Q4FY14, company’s top line increased by 20.07 per cent to Rs.307.81Cr as compared
to Rs.256.35Cr in same quarter of previous fiscal. USD revenues grew 3.9% QoQ to USD
72.6 mn led by 14.4% growth in IP led revenues and 1.6% QoQ services revenue growth.
• Operating Profit in Q4FY14 was at Rs.71.03 Cr as against Rs.55.81 Cr in Q4FY13registering
an increase of 27.27%.The margins were higher on account of lower sales and marketing
expenses and doubtful debt provision.
• Net Profit in Q4FY14 increased by 11.81 per cent (YoY) to Rs.57.84 Cr as compared to
Rs. 51.73 Cr in Q4FY13.
• Persistent Systems expects FY15 to be even better than FY14.
• http://www.moneycontrol.com/news/resultsboardroom/will-beat-fy14-revenue-growth-
this-year-persistent_1071984.html
• Persistent systems continues to have a healthy pipeline and with acceleration in
mining of enterprise accounts the growth momentum is likely to continue. Persistent
Systems is a core portfolio stock. We continue to like the company’s business model
and its Management. They have continued to deliver strong operational results and
this quarter has been no exception.
• Considering the Quality of Management, Improved demand outlook, Niche
Business and Growth prospects – we continue to be Long Term Investors in this stock
and hence Advise Investors to add on every decline.

Greaves Cotton
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• Greaves Cotton revenues in Q4FY14 was at Rs.430.52 Cr as against Rs.494.86 Cr in
Q4FY13 registering a decline of 13%.The decline was due to bad market conditions though
the company continues to hold its market share in the engines segment.
• Greaves Cotton operating margins in Q4FY14 was at Rs.52.45 Cr as against Rs.34.6 Cr in
Q4FY13 registering a increase of 51.59%.Margins were aided by cost optimization on the
raw material front.
• Greaves Cotton reported a net profit of Rs.38.49 Cr in Q4FY14 as against a profit of
Rs.51.56 Cr in Q4FY13 a drop of about 25.35%.
Greaves Cotton is also looking to expand its foot print by manufacturing overseas and
expects Rs.600 Cr revenue in the nest three years.
http://timesofindia.indiatimes.com/business/india-business/Greaves-Cotton-expands-overseas-
manufacturing/articleshow/25091897.cms
Greaves cotton operates in five main divisions-agricultural equipment,
automotive, auxiliary power, industrial engines and construction equipments.
With slow down in automotive segments the company is looking to de-risk its
strategy by investing in farm equipment segment to drive its growth. Greaves
cotton is one of the best Capital goods stock that has a structurally high return
on capital business. The company’s dominance in the small engine segment
and the Management’s attitude towards minority share holders make it a Core
portfolio bet.

Kewal Kiran
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• In Q4FY14, company’s top line increased by 15.31 per cent to Rs.88.06 Cr as compared
to Rs.76.37 Cr in same quarter of previous fiscal. Revenues were higher on account of 8.5%
volume growth and 4% realization growth.
• Operating Profit in Q4FY13 was at Rs.21.63 Cr as against Rs.20.29Cr in Q4FY13
registering an decrease of 6.60%.
• Net Profit increased 25.47 per cent (YoY) to Rs. 20.69 Cr in Q4FY14 as compared to Rs.
16.49 Cr in Q4FY13.
Kewal Kiran is one of our Core Portfolio stocks which we believe has a great
potential to deliver good compounded results for the next 5 years and more.
Kewal kiran management expects the top line to grow by 25% in the medium
term and expects margins of about 22-23% which provides strong revenue and
margin visibility. The company continues to perform brilliantly even in an
environment where its competition is floundering. We believe Long Term
investors must BUY this stock even at current prices.

Bajaj Electricals Ltd
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• In Q4FY14, company’s top line increased by 14.15%(YoY) to Rs.1269.51 Cr as
compared to Rs.1112.83 Cr in same quarter of previous fiscal. Bajaj Electricals
revenues are seeing traction from the E&P segment which clocked YoY growth of
54.1%
• Operating margins in Q4FY14 was at Rs.(0.9) Cr as against Rs.8.95 Cr in Q4FY13.
• In Q4FY14 the company incurred a net loss of Rs.10.65 Cr as against a Net profit of
Rs.0.63Cr in Q4FY13.
The E&P division of the company was a drag on the otherwise robust consumption
segment. With a new CEO at the helm things are looking up for the E&P segment which is
likely to result in robust performance in the coming years.
Bajaj Electricals consumer division is likely to grow at about 15% supported by a
growing middle class and rapid urbanization. Bajaj Electricals has delivered strong
operating results after several quarters of below average results. There is finally
hope on the turnaround of the company’s EPC business. Company’s consumer
durable business was always a strong performer. Hence, the stock would continue to
rally until the valuation differential between its peers are narrowed. The company’s
strong earnings growth would ensure that the stock continues to stay in our Core
Portfolio list.

IL&FS Investment managers
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• In Q4FY14, company’s top line decreased by 1.28per cent YoY to Rs.22.88 Cr as
compared to Rs.22.59Cr in same quarter of previous fiscal.
• Operating Profit in Q4FY14 was at Rs.26.11 Cr as against Rs.18.53 Cr in Q4FY13
registering a increase of 40.91% YoY.
• Net Profit increased 43.47 per cent (YoY) to Rs. 18.88 Cr in Q4FY14 as compared to Rs.
13.16Cr in Q4FY13.
While still the visibility for Business growth remains low, we believe that the
conditions for Private Equity Businesses has improved substantially with improved
Business environment. There is very high Margin of Safety in the business and we
continue to have a HOLD rating on the stock.

Redington India
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• In Q4FY14, company’s top line increased by 15.35 per cent YoY to Rs.3166.09 Cr as
compared to Rs.2744.74 Cr in same quarter of previous fiscal. Revenues were aided
by strong performance in both India and overseas business.
• Operating Profit in Q4FY14 was at Rs.82.06Cr as against Rs.82.02 Cr in Q4FY13
• Net Profit increased 171.53per cent (YoY) to Rs.119.23 Cr in Q4FY14 as compared
to Rs.43.91 Cr in Q4FY13. Expansion of product line and wide distribution network
helped the company to increase profitability during the quarter.
Redington is likely to benefit from strong economic growth which is likely to
see strong growth in the discretionary spending. Further the company has
improved its working capital due to favourable working capital sales on Apple
iphone sales. Redington continues to perform well in an extremely challenging
environment. The company’s decision to unlock capital by divesting its NBFC
would lead to better return ratios. The company is a strong play on the
improving electronics consumption of young Indians.

Eclerx
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• Eclerx revenues in Q4FY14 was at Rs.185.58 Cr as against Rs.145.87 Cr in Q4FY13
registering a increase of 27.22% YoY. Revenues were higher on account of higher
deal flow in financial services and sales and marketing business.
• Eclerx operating profit in Q4FY14 was at Rs.76.75Cr as against Rs.58.01Cr in
Q4FY13 an increase of 32.30% YoY.
• Net Profit in Q4FY14 was at Rs.61.23 Cr as against Rs.41.67 Cr in Q4FY13
registering a growth of 46.94% YoY.
Eclerx revenues were higher than expectations despite pressure from Top 5
customers which shows the business resilience of the company.
Eclerx is one of the biggest beneficiaries of the Rupee depreciation with a very
strong Offshore presence. With the US economy continuing to show strong growth
signs, we believe that Eclerx would continue to surprise Market participants on the
upside. Considering the Management’s track record on Capital Allocation and
Growth execution, the stock would be a part of our Portfolio for long term.

NMDC
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• In Q4FY14 NMDC revenues were at Rs.3883.52Cr as against Rs.3202.10Cr Q4FY13
a increase of 21.28% YoY.
• The company ‘s EBITDA in Mar 2014 was at Rs.2426.61Cr as against Rs. 1711.12 Cr
in Mar 2013 registering a growth of 41.81%.
• PAT for the quarter ended Mar2014 grew by 33.94% at Rs. 1,961.14Cr as against Rs.
1,464.95for the corresponding quarter ended Mar 2013.
NMDC is likely to benefit from recovery in the Infra space which is likely to
increase steel consumption in the country. In a rising economy there is likely to
be volume growth and pricing power for the stock.
NMDC has a large reserve base with high grade deposits an significant mine life. At
the current production run rate the company has a mine life of 42 years. A higher
mine life coupled with superior quality deposits provides visibility. NMDC’s dividend
yield continues to be attractive even at current prices. With the general optimism
around metal stocks after the rupee depreciation, we believe that NMDC has still
room for more gains. The company’s competitive positioning in the Indian markets
continues to be unassailable. With the economy showing signs of picking up there is
strong volume growth and pricing power.

CARE RATINGS
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• In Q4FY14 revenues were at Rs.75.67 Cr as against Rs.63.3Cr an increase of 19.54%
YoY.
• The company ‘s EBITDA in Mar 2014 was at Rs.50.41 Cr as against Rs.43.26 Cr in
Mar 2013 registering a growth of 16.53% YoY.
• PAT for the quarter ended Mar 2014 grew by 15.98% YoY at Rs.41.30 Cr as against
Rs.35.61Cr for the quarter ended Mar2013.
Care Ratings likely to get new promoter: Sources
http://www.moneycontrol.com/news/cnbctv18comments/care-ratings-likely-to-get-new-
promoter-sources_1046159.html?utm_source=ref_article
CARE ratings has the lowest cost structure among the three rating agencies in
the country. While the large corporates go to Crisil and ICRA to get rated the
smaller ones comes to CARE which provides huge opportunities. While the
stock may have rallied recently, we still believe that the stock is at attractive
enough prices considering the Quality of the business. With a strong Dividend
payout, we continue to be bullish on the stock.

Mahindra Holidays(MHRIL)
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• MHRIL reported sales of Rs.210.75 Cr in Mar 2014 as against Rs.187.38 Cr in Mar
2013 thereby registering a growth of about 12.47%(YoY).Revenues were higher due
to addition of 4513 members in Q4FY14 despite new regulations of TRAI on cold
calling.
• The company ‘s EBITDA in Mar2014 was at Rs.31.48Cr as against Rs.45.78 Cr in
Mar 2013 registering a decline of 31.24%.
• PAT for the quarter ended Mar2014 decline by 21.14% YoY at Rs.24.39Cr as
against Rs.30.93 Cr of corresponding quarter ended Mar2013.
Mahindra Holidays plans a capex of Rs.600 Cr to increase its inventory and is also looking
for expansion opportunities in the west.
http://www.rttnews.com/2344489/mahindra-hospitality-arm-to-pump-in-rs-600-cr.aspx
Vacation ownership services business though a high discretionary offering has
strong business potential due to large and growing holiday enthused families.
MHRL is a pioneer in the industry with high entry barriers and is likely to
benefit immensely from a growing economy. It is one of the best hospitality
stocks to own in India. The company Management’s pedigree combined with
the huge opportunity size should enable the stock to do well going forward.
Hence, we have a HOLD rating on the stock.

Bajaj Finserv
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• Bajaj Finserve reported sales of Rs.2050.07 Cr in Mar2014 as against Rs.2017.29Cr
in Mar 2013 thereby registering a growth of about 1.62% YoY. Revenues were flat
due to change in regulations for the Insurance Industry which had an adverse impact
on the industry.
• The company ‘s EBITDA in Mar 2014 was at Rs .1643.35Cr as against Rs. 1705.70 Cr
in Mar 2013 registering a de-growth of 3.66%.
• PAT in Mar 2014 was at Rs. 983.03 Cr as against Rs 1257.07 Cr in Mar 2013
registering a YoY de-growth of 21.80%.
Bajaj Finserve participates in insurance business through 74% holdings in Bajaj Allianz Life
Insurance Company and bajaj Allianz General Insurance Company and in the lending
business through 61.99% holding in bajaj finserve Ltd
Bajaj Finserv is one the cheapest available quality finance stocks. We believe that the
company has all the characteristics to emerge as a financial conglomerate over the next 10
years with significant value creation for its share holders. India’s best quality insurance
business cannot be available this cheap for long and we believe that the stock would
deliver good returns over the next 3 years. We continue to have a BUY rating on the stock.

Atul Auto
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
•In Q4FY14, company’s top line increased by 15.89per cent YoY to Rs.112.31Cr as
compared to Rs. 96.91 Cr in same quarter of previous fiscal.
•The company ‘s EBITDA in Mar 2014 was at Rs 10.46 Cr as against Rs. 10.34 Cr in Mar
2013 registering a growth of 1.16%.
•The company’s PAT in Mar 2014 was at Rs.8.45 Cr as against Rs.7.56 Cr in Mar 2013
registering a growth of 11.77%.
• Working capital requirement continues to be under control and there’s strong cash flow
generation which adding on to cash reserves.
Atul Auto Ltd has aggressive launches which will boost the top-line aided by recovery iin
the economy. Being a debt free company the company can boost its bottom line unlike its
peers who have debt on their books.
Atul Auto’s three wheeler volumes have grown at about 40% compared to 7%
industry growth. With growing dealership network, increasing geographical
presence, market share gains the stock is likely to shown strong growth. The
stock has attracted several high profile Investors into the stock such as Sanjoy
Bhattacharya, Raamdeo Agarwal etc. due to the strong growth visibility. We
believe that the company would continue to outgrow the Industry by over 10%
over the next 3 years leading to strong profitability for the company. We
continue to have a BUY rating on the stock despite the recent run-up.

VA Tech Wabag
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• VA Tech Wabag reported sales of Rs.896.64 Cr in Mar2014 as against Rs.676.62Cr
in Mar 2013 thereby registering a growth of about 32.52% YoY. Revenues were
higher on account of strong revenue growth of International subsidiaries.
• The company ‘s EBITDA in Mar 2014 was at Rs.103.85Cr as against Rs.87.08 Cr in
Mar 2013 registering a growth of 19.26%.
• PAT in Mar 2014 was at Rs.71.90 Cr as against Rs.60.03 Cr in Mar 2013 registering a
YoY growth of 19.77%.
VA Tech Wabag with a market share of 15%in niche water treatment business is expected
to benefit from a growing global market which is expected to hit USD 1 trillion.
VA tech wabag has an orderbook of Rs.60 Bn and frame work orders of about
Rs.11.7 Bn which provides strong visibility. With better overseas performance
of its overseas subsidiaries the company is likely to show strong performance in
the medium term.VA Tech Wabag is one of those high quality businesses which
can continue to deliver over 30% return on capital across an entire business
cycle. We are extremely bullish on the stock and we believe that the stock can
surprise most participant’s with its positive performance. This is clearly a BEST
BUY stock which Investors must invest.

Indiabulls Housing Finance
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• In Q4FY14 IndiaBulls Housing revenues increased by 2.56% YoY at Rs.1244.08 Cr as
against Rs.1212.98Cr in Q4FY13.
• In Q4FY14 operating profit has decreased from Rs.1075.07 Cr as against Rs.1165.32 Cr.
• Net Profit increased 22.83 per cent to Rs 451.51 Cr in Q4FY14 as compared to Rs.
367.59 Cr in Q4FY13.
IndiaBulls promoters split empire
Gehlaut gets housing finance, realty, securities; Rattan and Mittal get power & infra.
http://www.business-standard.com/article/companies/indiabulls-promoters-split-empire-
114070900745_1.html
IndiaBulls housing finance is likely to grow at a rapid space in the back of 16% growth in
the mortgage industry. The strong growth is driven by growing population, favourable
demography and nuclear families which will deliver growth in the medium term. Indiabulls
Housing Finance is a victim of negative perception (partially deserved by the company’s
past history). With continuous strong operating performances combined with robust
dividend payout, the stock should re-rate the going forward. We continue to be bullish on
the stock from a 3 year perspective.

Balkrishna Industries
News Update and
Analysis
HBJ - View
Quarterly Results
Analysis
• Balkrishna Industries reported sales of Rs. 1030.63Cr in Mar2014 as against Rs.
773.96 Cr in Mar 2013 thereby registering a growth of about 33.16% YoY. Revenues
were driven by 21% volume growth and 11% realization growth.
• The company ‘s EBITDA in Mar 2014 was at Rs. 220.01 Cr as against Rs. 123.75 Cr in
Mar 2013 registering a growth of 77.79%.Soft rubber prices resulted in EBITDA
margins expand by 583bps to 25.8%.
• PAT in Mar 2014 was at Rs. 154.15 Cr as against Rs. 84.63 Cr in Mar 2013
registering a YoY growth of 82.15%.
Shawn Rasey Joins BKT former head of Bridgestone America’s mining tyre business .
http://www.tirebusiness.com/article/20140702/NEWS/140709978/shawn-rasey-joins-bkt
Balkrishna Industries is expanding its capacity from 1,44,000 MT to about
3,00,000 MT by FY16 which is likely to drive growth. With replacement market
providing 80% of revenues the margins are relatively higher than peers. The
stock has been on a tear run aided by strong operating results coupled with
weak rubber prices. This well run company would continue to gain market
share in the global markets from less efficient players and hence the long term
prospects of the company continues to be strong. Hence, we would like to
accumulate the stock on every decline.

Dhanuka Agritech
• Balkrishna Industries reported sales of Rs. 884.42 Cr in Sep2013 as against Rs.
704.73 Cr in Sep 2012 thereby registering a growth of about 25.49% YoY.
• The company ‘s EBITDA in Sep 2013 was at Rs. 234.13 Cr as against Rs. 156.19 Cr in
Sep 2012 registering a growth of 49.9%.
• PAT in Sep 2013 was at Rs. 123.85 Cr as against Rs. 74.41 Cr in Sep 2012 registering
a YoY growth of 66.44%.
• Six new products are in pipeline, of which 2 are expected to be launched
every fiscal for the first time in India.
Dhanuka Agritech has approvals received under sec9(3) of the Insecticides Act
of India which gives it an exclusive right to sell these products in India.The
company has filed at least 6 new products and is confident of launching at least
2 new products every year which will drive its growth. Investors would be able
to accumulate the stock at much lower levels in case of a failed monsoon this
year. Hence, we would expect Investors to accumulate the stock in case of a
correction.
Quarterly Results
Analysis
• Dhanuka Agritech reported sales of Rs. 151.88 Cr in Mar2014 as against Rs.
131.17Cr in Mar2013 thereby registering a growth of about 15.79% YoY.
• The company ‘s EBITDA in Mar2014 was at Rs. 26.48 Cr as against Rs. 23.10 Cr in
Mar 2013 registering a growth of 14.63%.
• PAT in Mar 2014 was at Rs. 22.46 Cr as against Rs. 17.87 Cr in Mar 2013 registering
News Update and
Analysis
HBJ - View

NBCC
NBCC ties up with sick PSU’s to boost real estate business.
http://www.livemint.com/Companies/Jldm5sdRWRm9A6h8nKjo3N/NBCC-plans-tieups-
with-sick-PSUs-to-boost-real-estate-busin.html
NBCC’s Order Book of the PMC projects comprises of about 38% - institution
segment, 44% - infrastructure segment, 14% - commercial construction and 3%
- residential construction. The company has strong order book which provides
visibility for three years. Despite a weakened float and a subdued real estate
cycle, the company has been delivering strong operating results. The stock can
generate 30% CAGR returns and hence we would like to BUY this stock from a
3-5 year view.
Quarterly Results
Analysis
• NBCC reported sales of Rs. 1,445.24 Cr in Mar2014 as against Rs. 1287.61Cr in
Mar2013 thereby registering a growth of about 12.24% .
• The company ‘s EBITDA in Mar 2014 was at Rs. 103.02 Cr as against Rs. 97.90 Cr in
Mar 2013 registering a growth of 5.23% .
• PAT in Mar 2014 was at Rs. 106.93 Cr as against Rs. 96.52 Cr in Mar 2013
registering a YoY growth of 10.79%.
News Update and
Analysis
HBJ - View

Godrej Properties
• Godrej Properties adds a large new residential project in Pune. Godrej Properties adds
new project in Vikhroli through its agreement with Godrej & Boyce
The company has one of the best business models in the industry and has a
differentiated business model in the industry thereby providing the best
industry metrics due to its asset light business model. The company has huge
opportunity from the Godrej group which has huge land banks. This has
benefited the company as GPL is the developer for all these projects.The
company’s new project launches over the last month has led to strong re-rating
in the stock price. While the stock is no longer extremely cheap, it is still
available at an attractive valuation for investors to BUY.
Quarterly Results
Analysis
• In Q4FY14, company’s top line increased by 196.15 per cent to Rs. 297.78 Cr as
compared to Rs. 100.55Cr in same quarter of previous fiscal. In Q4FY14 the company
booked total booking value of Rs.1066 Cr vs Rs.601 Cr in Q4FY13.In Q4FY14 the company
recorded total booking volume of 1.34 mn sq.ft.
• Operating Profit in Q4FY14 was at Rs. 45.36 Cr as against Rs. 42 Cr in Q4FY13 registering
a increase of 8%.
• Net Profit increased 11.74per cent (YoY) to Rs. 40.93 Cr in Q4FY14 as compared to Rs.
36.63Cr in Q4FY13.
News Update and
Analysis
HBJ - View

Hindustan Media Ventures
HT Mumbai continues to consolidate its No. 2 position with a Total Revenue growth of
27% and achieves operational breakeven in Q3 FY14
Company is currently present in major hindi speaking states that are growth
engines of the economy whose GDP growth is above national average.
Company has a good brand recall and has built good reputation. This has
helped the company to increase subscription revenues which has enhanced
revenues and profitability. Though the company is facing tough competition
from DB Corp in Bihar it has managed to hold its leadership position. We
continue to monitor the stock closely before we take a strong decision on it.
Quarterly Results
Analysis
• In Q4FY14, company’s top line increased by 18.07 per cent to Rs. 180.69 Cr as compared
to Rs. 153.03Cr in same quarter of previous fiscal. Revenues were higher due to 14% YoY
circulation growth,20% YoY AD growth apart from yield improvement.
• Operating Profit in Q4FY14 was at Rs. 28.30Cr as against Rs. 24.14 Cr in Q4FY13
22.70 Cr in Q4FY13. PAT was supported by higher other income and lower tax rate.
News Update and
Analysis
HBJ - View

SCUF
Piramal acquires 9.9% in SCUF.
http://www.piramal.com/sites/default/files/pdf/pr-shriram-city-union-equity-stake.pdf
SCUF with the backing of long term Investors such as Ajay Piramal and
with the brand name and operational efficiency of Shriram group, is well
placed to capitalize on the booming SME financing potential. It is a very
wide market that is still largely dominated by unorganized players and
SCUF is well played to grow its balance sheet at a rapid pace with minimal
competition. We believe that paying up a premium for this stock is worth
it, considering the long run way for growth and the consistently profitable
business model (20%+ ROE’s).
Quarterly Results
Analysis
• In Q4FY14, company’s top line decreased by 2.63 per cent to Rs. 804.25Cr as compared
to Rs.825.94 Cr in same quarter of previous fiscal. Assets under management in Q4FY14
was at Rs.14668 Cr vs Rs.15828 Cr in Q4FY13.
• Operating Profit in Q4FY14 was at Rs. 515.84 Cr as against Rs. 540.92 Cr in Q4FY13
registering a decrease of 4.64%.
• Net Profit increased 17.28 per cent (YoY) to Rs. 147.44 Cr in Q4FY14 as compared to
Rs. 125.72 Cr in Q4FY13.
News Update and
Analysis
HBJ - View

Tree House Education & Accessories
Company is in a space which is a growing sector which is expected to grow at about 26% to
Rs.42.8 Bn . Company has a good brand recall and has built good reputation. This has
helped the company to increase student headcount which has enhanced revenues and
profitability.
We believe that Treehouse Education is a wonderful capital asset light
business in the booming education sector with a brilliant Management
team. We believe that the company’s divestments of K-12 assets would
bring out the real Earnings potential of the company. The company’s
strategy of sweating assets better with coaching classes, day care centers
etc gives us more confidence on the business model. For a company with
cash flows that are both Inflation proof and Recession proof, we believe
that the stock is trading at reasonable valuations.
Quarterly Results
Analysis
• In Q4FY14, company’s top line increased by 21.60 per cent to Rs.35.75 Cr as compared
to Rs. 29.40 Cr in same quarter of previous fiscal.
• Operating Profit in Q4FY14 was at Rs. 14.56 Cr as against Rs.10.55 Cr in Q4FY13
7.34 Cr in Q4FY13.
News Update and
Analysis
HBJ - View

GPPL
GPPL has been able to benefit from excessive cargo handling at JNPT which has increased
turnaround time. With GPPL being the nearest to JNPT port and the one which has the
lowest turnaround time cargo handling opportunity of GPPL has increased considerably
which is likely to drive its medium term growth.
GPPL possesses distinct advantages being located in a prime trade route apart
from proximity to key infrastructure projects such as DFCC,DMIC . These
attributes has helped the company to have a robust volume growth. The
company’s capacity utilizations are likely to improve going forward on account
of other major ports working at peak capacities. Apart from this the strong
parentage in the form of APM terminals gives reliable business visibility for the
company. We are very bullish on this company from a 3-5 year prospective and
recommend a Buy on the stock.
Quarterly Results
Analysis
• In Q4FY14, company’s top line increased by 26.28 per cent to Rs. 144.09 Cr as compared
to Rs. 114.10 Cr in same quarter of previous fiscal. Revenues were higher due to increase
in capacity utilizations which is around 77%.
• Operating Profit in Q4FY14 was at Rs. 74.16 Cr as against Rs. 43 Cr in Q4FY13 registering
a increase of 72.40%.EBITDA margins were higher due to mechanization and higher
container volume growth.
35.38 Cr in Q4FY13.
News Update and
Analysis
HBJ - View

DB Corp
Dainik Bhaskar in a innovative AD strategy has asked readers to cut and paste to get
exciting prizes.
http://www.afaqs.com/news/story/41284_Dainik-Bhaskar-asks-readers-to-cut-and-paste
DB Corp is a strong regional print media player with local ad share of about
65% and has been performing well even in a slow economic environment. With
economy showing signs of revival the AD based business model of the
company is bound to do well. We are very bullish on the prospects of the
company and recommend a buy for a 3-5 year period.
Quarterly Results
Analysis
• In Q4FY14, company’s top line increased by 14.1 per cent to Rs.454.2 Cr as compared to
Rs.398.1Cr in same quarter of previous fiscal. Revenues were higher due to 13.4% YoY AD
growth. Higher election spends and yield improvement were the key drivers for AD
growth.
• Operating Profit in Q4FY14 was at Rs. 104.6Cr as against Rs. 93.9 Cr in Q4FY13
• Net Profit increased 37.4 per cent (YoY) to Rs.75.9 Cr in Q4FY14 as compared to
Rs.55.30 Cr in Q4FY13. PAT was supported by lower tax rate.
News Update and
Analysis
HBJ - View

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HBJ Capital - Flash Back Report 2014

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