IEA Report: 9th December, 2016

IEA Report
9th Dec 2016

BLUESTARCO
"BUY"
9th Dec 2016
Going forward Q3FY17 and Q4FY17 sales will be impacted due to scarcity of new currency. As per the management H2FY17 will have some
challenges because Room-Air conditioners buyers are first time buyers. Company is not seeing any behavioral change in demand from real estate
sector yet and expected things to normalized probably by March. On the positive side the order book is up by 15% over last year and this is good
sign for the future growth. The Company intends to continue to make investments in manufacturing, marketing, brand building, product
development as well as human resources in the next few quarters in order to capitalise on the imminent growth opportunities.We have change our
Sales and PAT estimates due to demonetization but in a long term point of view we are optimistic about the stock hence we recommend BUY to
the stock at a revised target price of Rs 535. ................................. ( Page : 2-5)
PRAJIND
"BUY"
8th Dec 2016
Praj reported weak set of the numbers in Q2FY17 but considering the government emphasis on reducing import bill of oil and produce more
domestically coupled with focus on higher blending in a scenario where crude prices are going high, may auger well for the company as praj is the
prominent and only Indian company in 2G technology based Boi-Ethanol. We find this correction healthy and consider it a good entry point around
Rs.75 for medium to long term investors. We remain positive with a target price of Rs. 88 . ............................................. ( Page : 6-8)
"SUBSCRIBE"
Lauras Labs Ltd
7th Dec 2016
Company strategic and early investments in R&D and manufacturing infrastructure has enabled to become one of the leading suppliers of APIs in
the ARV therapeutic area to reap long term benefits on account of a robust business model, healthy balance sheet, strong business prospects in
terms of multiple levers in place for growth and ability of the management to leverage its capabilities in a bid to cultivate its business.
At the higher end of the price band of Rs 428, the IPO is valued at 12.6x EV/EBITDA and 34.1x P/E on FY16 basis. We believe the company is being
offered at upper band of its valuations. We maintain "SUBCRIBE" on this IPO. .......................................... ( Page : 9 -10)
ONGC
"BUY"
7th Dec 2016
ONGC is likely to achieve its annual target of 5.87MT crude production in FY17. The company has already crossed its daily production target of
16200 tonnes per day as compared to 15300 tonnes in Aug 2015. Recent upsurge in the crude oil prices will make onshore production viable. The
management has also guided that no subsidy has been decided by the government in FY17, thus benefits of higher crude would flow into the
company. Considering above arguments we recommend BUY on this stock with a target price of Rs. 365. ............................................... ( Page :
11 -13)
EICHERMOT
"NEUTRAL"
6th Dec 2016
Going forward, we expect capacity addition in line with demand(RE), seventh pay commission payout, expectation of pre-buying on new emission
norms and improving infrastructure activities in the country may be next growth drivers for the company. But in the near term we see some stress
in demand due to demonetisation and see some tapering of growth due to higher base in previous year. Presently, we are 'Neutral' on this stock
considering lateset demonetisation and confusion regarding the demand scenario, with a target price of Rs. 26000. Earlier, we recommended 'BUY'
on this stock at Rs.19753, and 'Booked Profit' at Rs.24777, an upside of 25%. ......... ( Page : 14-16)
SADBHAV
"BUY"
5th Dec 2016
Though the execution in Q2FY17 was slow due to heavy monsoon, we expect full fledged execution in H2FY17 will help SADBHAV to register robust
revenue growth. Reduced working capital from Irrigation project and repayment of loan from SIPL will strengthen companys balance sheet
position. SADBHAV is better placed to grab opportunities from upcoming government spending to boost infrastructure. We are keeping our positive
stance on stock. We maintain Buy rating for a target price of 315/- .......... ( Page :13 -16)
BANKBARODA
"BUY"
2nd Dec 2016
Focus of the management on profitability has resulted in steady quarter this time. BoB has shown a sign of improvement in its profitability. In the
clean up exercise, BoB has recognised huge stress assets in its balance sheet. Going forward we expect the stress assets to decline significantly thus
resulting in credit cost to decline. However BoB needs to come out of the consolidation of advances and should grow its loan portfolio to further
support the operating profitability. Strong capitalization of 12.9% CRAR (Tier 1 at 10.6%) will help the bank to grow further without any near term
dilution. We recommend BUY with the target price of Rs 188. ....... ( Page : 17-21)
Narnolia Securities Ltd
IEA Edition No.-
901
BUY
BLUE STAR LTD.
9-Dec-16
Impact of Demonetization
Result Update
CMP
471
Target Price
535
Demonetization may impact Q3FY17 sales of the company. Generally 3rd

quarter is always a weak season for ACs and only 35% of total sales is done
through cash in tier I and tier II markets so we do not see huge impact of
demonetization. But in tier III, tier IV and tier V markets cash sales ratio is
higher (60%) than tier I and tier II markets so here we can see some impact
of it but it will for short term period. Overall there will be marginal impact of
demonetization in the company and company is not seeing any behavioural
change in demand from real sector yet.
Previous Target Price

Upside
14%
Change from Previous
Market Data
450 cr expansion on the cards
BSE Code
Blue Star is planning to invest Rs 450 crore in the next three years. The airconditioner maker is getting consumers focus after entering the residential
air conditioner and water purifier segment.
500067
NSE Symbol
BLUESTARCO
581/306
4,497
485
8247
52wk Range H/L

Mkt Capital (Rs Cr)
Av. Volume
Nifty
Q2FY17_Result Highlights
The Company has reported a Total Operating Income of Rs 899 cr for the
quarter ended Sep 30, 2016 on a consolidated basis as compared to Rs 777
cr in the same period last year representing a growth of 16%. EBITDA Rs 41
cr As compare to 35 cr in the same period last year. Financial Expenses for
the quarter declined by 22% to Rs 8.75 crores from Rs 11.27 crores in
Q2FY16, mainly due to reduced cost of borrowings.
Stock Performance
1Month
3 Month
1Year
Absolute
-13.4
27.1
11.0
Rel.to Nifty
-9.5
20.9
11.3
Outlook and Valuation

Share Holding Pattern-%
2QFY17
1QFY17 4QFY16
Promoter
39.12
39.04
39.46
Public
60.88
60.96
60.54
Others
--
--
--
100
100
100
Total
Going forward Q3FY17 and Q4FY17 sales will be impacted due to scarcity of
new currency. As per the management H2FY17 will have some challenges
because Room-Air conditioners buyers are first time buyers. Company is not
seeing any behavioral change in demand from real estate sector yet and
expected things to normalized probably by March. On the positive side the
order book is up by 15% over last year and this is good sign for the future
growth. The Company intends to continue to make investments in
manufacturing, marketing, brand building, product development as well as
human resources in the next few quarters in order to capitalise on the
imminent growth opportunities.We have change our Sales and PAT
estimates due to demonetization but in a long term point of view we are
optimistic about the stock hence we recommend BUY to the stock at a
revised target price of Rs 535.
Company Vs NIFTY
160
BLUESTARCO
NIFTY
150
140
130
120
110
Rs 'Cr
100
90
Bibha Kashyap
bibha.kashyap@narnolia.com
Dec-16
Oct-16
Nov-16
Sep-16
Aug-16
Jul-16
Jun-16
May-16
Apr-16
Mar-16
Jan-16
Dec-15
Nov-15
80
Financials
FY13
FY14
FY15
FY16
FY17E
Sales
EBITDA
Net Profit
EBIDTA%
P/E
2924
90
39
3.1%
0.01
2934
150
78
5.1%
0.03
3182
167
54
5.3%
0.02
3770
216
109
5.7%
0.03
3825
228
113
6.0%
0.03
(Source: Company/Eastwind)
Narnolia Securities Ltd,
Investment Arguments :
The wide product range including state-of-the-art inverter split air conditioners, enhanced distribution reach and
premium brand equity will further strenghten the performance of the product business.
The electro-mechanical projects business has been showing signs of improvement in some markets and application
segments.
With additional product lines being added to the Companys portfolio such as water purifiers, Blue Star expects air
coolers and air purifiers, to sustain its growth momentum in FY17 as well.
Substantial repayment of debt would be constrained by working capital needs as the company expects strong growth
in FY17.
The companys Room-Air conditioning (RAC) business has been outgrowing the industry by 10% points over the last
few quarters, resulting in the company consistently increasing its market share.
Order book :
Book to bill
1.17
1.07
1.02
0.87
0.90
1.09
1.12
0.97
1.04
0.97
0.92
0.89
0.94
0.97
0.93
0.92
0.92
0.95
0.95
Order book(Cr)
2500
2000
1500
500
2019
2162
1678
1614
1848
1676
1628
1412
1438
1744
1737
1478
1572
1492
1412
1388
1493
1604
1605
1628
1628
1,776
1840
1000
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
3QFY15
4QFY15
1QFY16
2QFY16
3QFY16
3QFY16
4QFY16
1QFY17
2QFY17
1.4
1.2
1
0.8
0.6
0.4
0.2
0
Trend of EBITDA , EBIT & PAT Margin(%):

Gross Margin %
EBIDTA %
8%
6%
4%
2%
0%
-2%
-4%
-6%
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
3QFY15
4QFY15
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
35%
30%
25%
20%
15%
10%
5%
0%

Please refer to the Disclaimers at the end of this Report.
Recent management commentaries:

As per the management consumer durables category around 12 percent is sold through the e-commerce portals and
air conditioners was at five percent.
Company has increased market share in room air conditioner business and commercial refrigeration products like
water coolers and deep freezers.
Expected revenue growth 30%
Expected margin will be between 9.5%-10.5%
volume will grow somewhere around 10 %.
Segment wise performance

The Electro-Mechanical Projects and Packaged Air Conditioning Systems business, accounting for 62% of the total
revenues in the quarter, increased by 14% to Rs 559.88 crores from Rs 491.55 crores propelled by Government
infrastructure-related projects. Segment Results registered a marginal increase of 2% to Rs 30.27 crores. Project
execution progress remained slow as customers phase out their requirements based on available capital thereby
deferring overall project completion.
The Unitary Products revenues in the quarter increased by 18% to Rs 291.56 crores, while Segment Results grew 68%
to Rs 21.75 crores over the same period. Enhanced product penetration amongst the existing channels, greater demand
during the onset of the festive season, enhanced product portfolio and deeper penetration contributed to the
growth and profitability in this segment.
The Professional Electronics and Industrial Systems business revenues increased by 25% to Rs 46.38 crores, while
Segment Results registered an increase of 11% to Rs 7.25 crores owing to a few large surveillance projects billed during
the quarter.
Segment wise Revenue(Cr)

Electro Mechanical Projects & Packaged Air-conditioning systems
Cooling Products
376
34 169
396
47 156
481
70 307
342
396
32
374
43 169
349
42 155
355453
60
335 484
26
396
37 205
357
37 196
505
454
46
327 556
25
459
12 246
238 439
9
546
540
18
419
744
11
292 533
9
367
334
31
283 463
67
368
52 164
382
59 157
33
800
700
600
500
400
300
200
100
-
342
328
Professional Electronics & Industrial Equipment

Financials Snap Shot
FY14
8.6
51.2
2.3
0.3
RATIOS
FY15
FY16
6.0
12.1
50.7
73.7
4.7
7.6
0.8
0.6
23.3
3.9
1%
51.1
6.1
2%
28.1
4.6
2%
33.1
7.0
2%
17%
24%
12%
26%
16%
23%
21%
32%
1.3
95.9
81.5
103.2
0.0
1.5
82.3
78.9
101.5
0.1
1.5
80.5
75.6
105.9
0.0
1.6
80.5
70.0
103.5
0.0
INCOME STATEMENT
FY14
Revenue (Net of Excise Duty)2934
Other Income
18
Total Revenue
2952
COGS
2087
GPM
1
Other Expenses
450
EBITDA
150
EBITDA Margin (%)
5%
Depreciation
38
EBIT
113
Interest
54
PBT
76
Tax
2
Tax Rate (%)
3%
Reported PAT
78
Dividend Paid
21
No. of Shares
9
FY15
3182
8
3190
2214
1
533
167
5%
43
124
49
43
-8
-19%
54
42
9
FY16
3770
17
3787
2607
1
600
216
6%
60
156
43
135
27
20%
109
68
9
FY17E
3825
20
3846
2724
1
583
228
6%
53
175
54
141
28
20%
113
68
9
EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Price / Book Value
Dividend Yield (%)
Profitability Ratios
RoE
RoCE
Turnover Ratios
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Creditors (No. of Days)
Net Debt/Equity (x)
Souce: Eastwind/Company
BALANCE SHEET
Share Capital
Reserves
Net Worth
Long term Debt
Short term Debt
Deferred Tax
Total Capital Employed
Net Fixed Assets
Capital WIP
Debtors
Cash & Bank Balances
Trade payables
Total Provisions
Net Current Assets
Total Assets
FY14
18
443
461
0
494
2
461
271
1
771
68
830
73
491
2336
FY15
18
438
456
24
373
1
479
279
2
718
44
885
88
311
2175
FY16
18
472
663
18
345
2
681
285
6
831
54
1094
46
417
2590
FY17E
18
517
535
18
315
2
553
295
6
843
3
1085
43
240
2422
FY17E
12.6
59.5
7.6
0.6
CASH FLOW STATEMENT

FY14
FY15
FY16
FY17E
OP/(Loss) before Tax
76
43
135
141
Depreciation
38
43
60
53
Direct Taxes Paid
-19
-26
-52
-28
Operating profit before working
171capital changes
186
191
248
CF from Op. Activity
67
215
242
180
Capital expenditure on fixed assets

-40 including
-60capital advances
-55
and-63
capital wor
CF from Inv. Activity
11
-49
-44
-77
Repayment of Long Term Borrowings
0
25
0
0
Interest Paid
-54
-50
-43
-54
Divd Paid (incl Tax)
-27
-39
-107
-68
CF from Fin. Activity
-26
-190
-205
-153
Inc/(Dec) in Cash
52
-24
-7
-51
Add: Opening Balance
17
68
44
54
Closing Balance
68
44
54
3

Limited Downside- target- 88/Praj Industries
8-Dec-16
Result Update
CMP
77
Target Price
88
14%
Upside
Market Data
BSE Code
522205
NSE Symbol
PRAJIND
105/70
1,387
51
8143
52wk Range H/L

Mkt Capital (Rs Cr)
Av. Volume ('000)
Nifty
Stock Performance
1Month
3 Month
1Year
Absolute
-11.1
-17.4
-12.7
Rel.to Nifty
-7.6
-8.8
-16.3

2QFY17
1QFY17 4QFY16
Promoters
34%
34%
34%
Public
66%
66%
66%
Higher Crude Price to Support Operational performance

OPEC has come to an agreement to cut supply to support international oil
prices, resulting recent spike in crude oil prices to support company's
operational performance going forward. Company's order book may improve
going forward with higher demand for ethanol blending in India, coupled with
government focus on to curtail oil import by way of higher ethanol blending.
We expect speedy work on IOCs project to set up 2G based Ethanol plant.
After demonetization move, which we believe will not impact business much
as Praj functions in B2B business model and 40% of the revenue comes
from the export business.
Q2FY17 Result Highlights

Total revenue in Q2FY17 is decline by 1.28% YoY to Rs. 206 Cr as against
Rs.210 Cr in Q2FY16. Lower execution of Ethanol segment led to decline in
revenue. Ethanol revenue decline by 10% YoY. Brewery business remain
flattish on YoY and Emerging business grow by 32% YoY.
EBITDA for the Quarter contracted by 40 bps YoY to Rs.6 Cr in Q2FY17
compare to Rs.7 Cr in Q2FY16. Higher employee benefit expenses led to
decline in EBITDA. Company need to make provision of Rs. 2 Cr for the
retire employee benefit. PAT decline due to lower EBITDA to Rs. 3 Cr in
Q2FY17 compare to Rs.5 in Q2FY16.
Order inflow during the quarter de grow by 46% YoY to Rs. 200 Cr as
against Rs. 369 Cr in Q2FY16.
Current order book of the company stand at Rs. 1025 Cr (including Rs.235
cr of Petro bass order)
Company Vs NIFTY
130
PRAJIND
NIFTY
120
110
100
90
80
Praj reported weak set of the numbers in Q2FY17 but considering the
government emphasis on reducing import bill of oil and produce more
domestically coupled with focus on higher blending in a scenario where crude
prices are going high, may auger well for the company as praj is the
prominent and only Indian company in 2G technology based Boi-Ethanol. We
find this correction healthy and consider it a good entry point around Rs.75
for medium to long term investors. We remain positive with a target price of
Rs. 88
In Rs. Cr
70
60
50
40
Sandip Jabuani
Financials
FY13
FY14
FY15
FY16
FY17E
Sales
EBITDA
Net Profit
EBIDTA M%
PAT M%
919
85
68
9.2%
7%
986
78
55
8.0%
6%
1012
93
76
9.2%
8%
1016
111
70
10.9%
7%
963
63
45
8.4%
6%
sandip.jabuani@narnolia.com
Key take way from Concall / Managment Interviwe

Praj selected as technology supplier by IOC (Indian Oil Corporation) and signed MoU for the setting up three 2G technology
based Boi- Ethanol plant.
Each plant requires 550-600 Cr of capital investment. Main portion will invest by OMCs and government.
Praj need to invest around 7-12% of equity in 2G Ethanol plant
Management is in talk with new contractor to resume Petro bass order. More clear view by calendar year end.
Tax rate for FY17:- 30%
Order Book and Order Inflow growth

Order Book
Order Inflow Growth (YoY%)
1400
1200
1000
100%
92%
990
1050
875
820
800
730
600
1147
1010
1115
980
1025
24%
40%
34%
20%
21%
0%
10%
-20%
-11%
-31%
60%
40%
730
400
200
1030
73%
960
80%
-40%
-32%
-34%
-46%
-47%
-60%
Segment Order Book and Order Intake (Order Intake is Rs.200 Cr in Q2FY17)
2QFY17
2QFY17 (Order Intake)

Ethanol
30%
Brewery
40%
Emerging
51%
62%
8%
9%
Segment Revenue
Ethanol
250
Brewery
Emerging
227
200
217
183
180
159
150
134
91
100
73
66
49
52
50
8
16
106
31
117
105
80
69
104
116
130
127
84
66
48
43
44
33
50
23
23
117
72
40
55
23
66
23
2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17

RATIOS
FY14
FY15
3.1
4.3
32.8
35.1
2.6
1.9
84%
44%
FY16
3.9
37.3
1.9
48%
9.5
1.1
5%
17.0
1.6
5%
14.5
1.8
3%
22.7
2.4
2%
12%
11%
9%
9%
12%
9%
11%
11%
0.7
125
69
94
0.0
0.8
119
93
74
0.0
0.8
101
70
64
0.0
0.9
132
79
74
0.0
INCOME STATEMENT
FY13
Other Income
31
Total Revenue
950
COGS
507
GPM
1
Other Expenses
214
EBITDA
85
EBITDA Margin (%)
9%
Depreciation
22
EBIT
63
Interest
2
PBT
92
Tax
21
Tax Rate (%)
23%
Reported PAT
68
Dividend Paid
34
No. of Shares
18
FY14
986
24
1010
479
0
304
78
8%
24
55
1
77
20
27%
55
46
18
FY15
1012
34
1046
506
1
280
93
9%
38
55
2
86
8
9%
76
34
18
FY16
1016
15
1030
467
0
287
111
11%
34
77
1
90
20
23%
70
34
18
EPS
Book Value
DPS
Valuation(x)
P/E
Price / Book Value
Dividend Yield (%)
RoE
RoCE
Turnover Ratios
Asset Turnover (x)
Net Debt/Equity (x)
Share Capital
Reserves
Net Worth
Long term Debt
Short term Debt
Deferred Tax
Net Fixed Assets
Capital WIP
Debtors
Trade payables
Total Provisions
Net Current Assets
Total Assets
FY13
35
535
571
0
14
10
571
250
48
316
75
238
189
298
1246
FY14
35
547
583
0
21
9
583
268
2
320
57
200
212
291
1276
FY15
35
587
622
0
17
1
622
241
1
280
100
177
133
337
1216
FY16
36
626
661
0
16
0
661
223
1
367
82
207
29
345
1162
FY13
3.8
32.1
1.9
49%
FY13
FY14
FY15
FY16
92
77
86
90
Depreciation
22
24
38
34
Direct Taxes Paid
48
28
9
36
94capital changes
95
113
127
28
(3)
150
52
13
20
21
36
53 including
39 capital advances
16
and13
capital wor
26
18
(80)
(1)
0
0
0
0
Interest Paid
2
1
2
1
33
46
34
69
(58)
(40)
(40)
(68)
Inc/(Dec) in Cash
(5)
(25)
29
(18)
72
68
44
76
Closing Balance
68
44
76
62

Lauras Labs Ltd
"SUBSCRIBE"
7th Dec 2016
IPO Note
Issue Detail
Company Overview
Type
Issue Size
100% Book Building

Rs. 1350 Crore
Offer Price
*Rs (426 - 428)/Equity Share
Min App Size
35 Shares
Issue Open
6-Dec-16
Issue Close
Shares Offer
Face Value
Lead Mgrs
8-Dec-16
3.115
Rs 10
Citigroup Global Markets India
Pvt Ltd, Jefferies India Pvt Ltd ,
Kotak Mahindra Capital
Company Ltd.
Listing
Registrar
NSE,BSE
Laurus Labs Ltd was incorporated in 2005 which is Hyderabad based pharmaceutical company.
Laurus Labs is in the business of manufacturing generic active pharmaceutical ingredients (APIs)
for therapeutic areas of antiretrovirals (ARVs) and Hepatitis C. Company also manufacture APIs in
oncology and other therapeutic areas.
Company operate in four buisness : Generics - APIs , Generics - FDFs , Synthesis and Ingredients.
Generics -API business comprises the development , manufacture and sale of APIs and advanced
intermediates . Generics FDF business comprises the development and manufacturing oral solid
formulation. Synthesis business includes contact development and manufacturing services for
global pharmaceutical companies . Ingredients business comprises the manufacture & sale of
speciality ingredients for use in the nutraceutical and cosmeceutical sectors. Company has lunched
59 products . company's key customers Asper pharmacare Ltd , Auropharma , Cipla , Mylan , Natco
, Strides shasun Ltd . Company owned 32 patents and had 150 pending patent application in
several countries . Company has three manufaturing facilities in visakhapatnam , andhra Pradesh.
Company sells its products in 32 countries in sub saharan africa , south east asis and Latin America.
Karvy Computershare Pvt Ltd
Market Cap
(Post Issue)
4527.8
No of shares ( Post & Pre Issue)

No of Shares (Pre Issue)
Offer for Sale
98,746,904
24,107,440
Fresh Issue made

No of Shares (Post Issue)
7042253
105789157
Bid allocation pattern
Company Strategies
> Company is a leading developer and manufacturer of generics APIs in select , high- growth
therapeutics areas of ARV and Hepatitis C.
> Company has strong R&D capabilities & process chemistry skills . Company is focused on
undertaking dedicated R&D in existing products where company believe there is significant growth
potential.
> Copany has maintained long standing relationship with multi national pharmaceutical companies
. Company cumulative revenue from such customers has grown year over year for the last three
financial years.
> Company experienced Promoters and Qualified Operational Personnel
Risk
QIB
50%
Non-Institutional
15%
Retail
35%
> Any manufacturing or quality control problems may subject us to regulatory action, damage our
reputation and have an adverse effect on business, results of operations, financial condition and
cash flows.
> Company derive a significant portion of revenue from a few customers, most of whom
Company do not have long term contractual arrangements with, and the loss of one or more such
customers, the deterioration of their financial condition or prospects, or a reduction in their
demand for our products could adversely affect business, results of operations, financial condition
and cash flows
Objects of the Issue:

Particulars
Pre-payment of term loans
General corporate purposes.
Recommendation
Company strategic and early investments in R&D and manufacturing infrastructure has enabled to become one of the leading suppliers of
APIs in the ARV therapeutic area to reap long term benefits on account of a robust business model, healthy balance sheet, strong business
prospects in terms of multiple levers in place for growth and ability of the management to leverage its capabilities in a bid to cultivate its
business.
At the higher end of the price band of Rs 428, the IPO is valued at 12.6x EV/EBITDA and 34.1x P/E on FY16 basis. We believe the company is
being offered at upper band of its valuations. We maintain "SUBSCRIBE" on this IPO.
Lauras Labs Ltd

Financials
Yearly Profit & Loss Account (Consolidated Figure)
Figure in Rs (Crore)
30th Sept
2016
Total Income
EBITDA
PAT
EBITDA Margin
PAT Margin
No of Shares
Post Issue Diluted EPS
Price
P/E( At upper price band)
P/E( At lower price band)
EV/EBITDA( At upper price band), X
EV/EBITDA( At lower price band), X
ROE %
31 March
2016
31 March
2015
31 March
2014
942
209
75
22%
8%
10.57
14.21
1,791
380
133
21%
7%
10.57
12.55
1,361
234
68
17%
5%
10.57
6.47
1,169
218
97
19%
8%
10.57
9.20
Rs 426 - 428
34.1
33.9
12.85
12.80
16%
15.6%
9.5%
27.1%
Figure in Rs (Crore)
Balance Sheet
30th Sept
2016
31 March
2016
31 March
2015
31 March
2014
EQUITY AND LIABILITIES

Share capital
Reserves and surplus
830
82
769
82
640
78
281
Shareholders' funds
929
852
722
358
283
576
461
481
304
432
188
312
859
942
735
500
60
8
38
45
10
5
45
12
Long-term borrowings
Short-term borrowings
Total Borrowing
Deferred tax liability (net)
Long-term provisions
Other Long Term Liabilities
Non - current liabilities
99
7
44
4
0
106
96
60
16
308
354
25
249
145
20
231
133
7
227
164
7
687
2581
413
2303
371
1888
399
1273
Long-term loans and advances

Non current investment
Other non-current assets
1276
152
6
13.74
1155
129
7
9.06
911
94
7
13.97
615
69
0
14.53
Non-current assets
1447
1300
1026
698
521
533
14
39
26
487
445
28
30
13
475
285
59
31
12
328
195
23
25
4
1134
2581
1003
2303
862
1888
575
1273
Trade payables
Other current liabilities
Short-term provisions
Current liabilities
TOTAL Liabilities
Fixed assets
Inventory
Trade receivables
Cash and bank balances
Short-term loans and advances
Other Current Assets
Current assets
Total
Buy
OIL AND NATURAL GAS CORPORATION LTD.

Company Update
CMP
298
Target Price
365

Upside
22%
Market Data
BSE Code
500312
NSE Symbol
ONGC
299/187
254953
427
8163
52wk Range H/L

Mkt Capital (Rs Cr)
Av. Volume(,000)
Nifty
Stock Performance
1M
7-Dec-16
ONGC has posted revenue of Rs.18395 Cr in 2QFY17 as compared to

Rs.20512 Cr in 2QFY16 (de-growth of 10% on YoY). This de-growth was
led by unfavorable international crude oil prices till Nov.2016 but now we
expect turn around in the crude oil prices due to the decision taken by the
OPEC on 2nd Dec 2016 to cut down crude production by 1.2 million barrels
per day (bpd) to 32.5 million barrels per day for the first time in eight years .
According to management, every 1USD increase in the crude price will help
the company to generate additional revenue of Rs.1000 Cr and PAT of Rs
425 Cr on the yearly basis. At the same time the company is on the track to
achieve its planned production volumes of 25.73 metric tonnes for FY17.
Q2FY17_Result Update
Profit after tax for 2QFY17 stands at Rs. 4976 Cr as compared to Rs.
4681 Cr in the same quarter of FY16.
Crude oil production in 2QFY17 is 6.392MMMT (de-growth of 2% on YoY).
3M
12M
Gas production in 2QFY17 is 5.807BCM as compared to 5.702 BCM in

2QFY116(increase of 1.84% on YoY)
Absolute
10.5
25.4
43.0
15 oil and gas discoveries notified till 2QFY17
Rel.to Nifty
14.8
23.3
34.6
EBITDA margin of the company has improved by 630bps to 49.5% in

2QFY17
LPG volume has increased from 0.29 MMT to 0.36 MMT in 2QFY17

2QFY17
Promoters
Public
Others
Total
1QFY17 4QFY16
68.93
31.07
68.93
31.07
68.93
31.07
100
100
100
Company Vs NIFTY
140
ONGC
NIFTY
130
120
ONGC is likely to achieve its annual target of 5.87MT crude production in

FY17. The company has already crossed its daily production target of
16200 tonnes per day as compared to 15300 tonnes in Aug 2015. Recent
upsurge in the crude oil prices will make onshore production viable. The
management has also guided that no subsidy has been decided by the
government in FY17, thus benefits of higher crude would flow into the
company. Considering above arguments we recommend BUY on this
stock with a target price of Rs. 365.
110
100
Financials
2012
2013
2014
2015
90
Sales
EBITDA
Net Profit
EPS
P/E
147285
48491
28144
33
8.2
162403
43499
24220
28
11.0
174477
49725
26507
31
10.3
160890
42301
18334
21
14.3
Oct-16
Nov-16
Sep-16
Jul-16
Aug-16
Jun-16
Apr-16
May-16
Mar-16
Jan-16
Feb-16
Dec-15
Nov-15
80
Aditya Gupta
Rs,Cr
2016
131517
41261
14123
17
13.2
aditya.gupta@narnolia.com
11
Management Speak/ Key take aways From Management Interview

ONGc has notified 7 more discoveries since last press release on 7th September,2O16.
ONGC to begin oil production from Ratna R-Series field in 2019.Production form the fields is targeted to start in 2019
with an output of 10,000 barrels per day
ONGC will invest USD 20 billion in next 5-7 years primarily in deepwater fields to augment gas production
Management is confident of volumes improving on back of project implementation
Subsidy
Subsidy Burden
16202
13796 13764
12622
13200
Government has decided

no subsidy for FY17, and
benefits will flow to the
company
13641
9458
1096
Operational Highlights
Volume Trend
Crude Oil (MMT)
7.0
6.5
6.2
6.0
6.5
6.2
6.5
6.3
6.5
6.2
6.4
6.0
6.4
5.7
6.6
6.0
Gas (BCM)
6.5
5.8
6.5
5.8
6.6
5.8
6.5
5.8
6.3
5.8
6.3
5.5
6.4
5.5
5.0
4.0
3.0
2.0
1.0
-
About the Company
Business Segment Overview
ONGC is Indias largest national oil & gas company, primarily

engaged in the exploration, development and production of crude
oil and natural gas in both India and abroad. ONGC, through its
wholly owned subsidiary ONGC Videsh Ltd, has presence across
14 countries in E&P activities. The company is also present in
downstream refining and marketing operations in India through its
subsidiary MRPL, which operates
a refinery with an installed
capacity of 15 MMTPA.ONGC dominates Indias oil & gas
production with more than two third share of the countrys
production of oil and oil equivalent gas. It contributes ~78% and
~73% to total oil and gas production, respectively, in India. ONGC
has 969 mmtoe of proved reserves and 1451 mmtoe of 2P
reserves at FY13 end. Its total domestic production for FY13
aggregated 51.5 mmtoe.

12
FY13
Revenue (Net of Excise Duty)
162,403
Other Income
5,491
Total Revenue
167,893
COGS
(1,120)
GPM
-1%
Other Expenses
106,755
EBITDA
43,499
EBITDA Margin (%)
27%
Depreciation
11,763
EBIT
31,735
Interest
484
PBT
36,742
Tax
12,752
Tax Rate (%)
35%
Reported PAT
24,220
Dividend Paid
9,509
No. of Shares
856

INCOME STATEMENT
FY14
FY15
FY16
FY13
174,477 161,212
131,498 EPS
28
6,894
5,925
7,023 Book Value
178
181,371 167,137
138,521 DPS
11
(719)
1,723
725 Payout (incl. Div. Tax.)
39%
0%
1%
1% Valuation(x)
116,169 104,795
82,414 P/E
11
49,725
42,342
42,051 Price / Book Value
2
28%
26%
32% Dividend Yield (%)
4%
16,581
18,033
18,009 Profitability Ratios
33,144
24,309
24,042 RoE
16%
624
2,864
2,157 RoCE
20%
39,413
27,370
22,718 Turnover Ratios
12,760
9,697
8,417 Asset Turnover (x)
0.64
32%
35%
37% Debtors (No. of Days)
35
26,507
18,334
14,124 Inventory (No. of Days)
29
9,509
9,259
5,756 Creditors (No. of Days)
42
856
856
856 Net Debt/Equity (x)
0
FY13
Share Capital
4,278
Reserves and surplus
148,250
Shareholders' funds
152,528
Long term Debt
8,843
Total Borrowings
11,527
Non Current liabilities
14,849
Long term provisions
161370
Short term Provisions
164,703
Current liabilities
39,745
Total liabilities
15,396
Net Fixed Assets
19,619
Non Current Investments 18,615
Other non Current assets 26,350
Current assets
27,400
Total Assets
253,461
BALANCE SHEET
FY14
FY15
4,278
4,278
167,873 176,177
172,151 180,454
31,681
47,575
13,907
5,345
18,552
19,357
203832
228030
209,603 223,186
53,827
32,660
16,028
18,816
24,480
16,097
30,678
30,466
31,357
35,039
19,941
20,191
324,911 338,292
FY16
4,278
180,467
184,744
46,272
7,321
21,547
231016
236,529
32,508
9,687
25,784
33,886
40,937
15,227
356,211
RATIOS
FY14
FY15
31
21
201
211
11
11
36%
51%
FY16
17
216
7
41%
10
2
3%
14
1
4%
13
1
3%
15%
16%
10%
11%
8%
10%
0.54
34
31
64
0
0.48
43
24
69
0
0.37
27
28
94
0
CASH FLOW STATEMENT

FY13
FY14
FY15
FY16
36,742
39,413
27,370
22,718
Depreciation
12,094
16,581
18,033
18,009
Direct Taxes Paid
12,416
10,567
9,029
7,626
58,306 capital
59,570
changes54,535
46,960
39,874
53,270
33,950
52,777
Proceeds from sale of Current
(83)
investments
Capital expenditure on fixed
(17,961)
assets (14,939)
including capital
(16,906)
advances
(11,324)
and capi
(41,220) (63,633) (30,320) (37,977)
Repayment of Long Term10,432
Borrowings33,199
17,078
5,522
Interest Paid
(687)
(709) (1,199)
(1,466)
11,002
9,762
9,495
5,920
(6,927)
15,225 (10,641)
(6,223)
Inc/(Dec) in Cash
(8,273)
4,862
(7,010)
8,578
Add: Opening Balance 27,874
19,601
12,727
5,720
Closing Balance
19,601
24,463
5,717
14,298

13
NEUTRAL
Eicher Motors Limited
6-Dec-16
Result Update
CMP
22742
Target Price
26000

Upside
14%
Market Data
BSE Code
505200
NSE Symbol
EICHERMOT
52wk Range H/L
26602/14818
Mkt Capital (Rs Cr)
61,855
Av. Volume
7067
Nifty
8087
Stock Performance
1Month
1Year
YTD
Absolute
-7.6
38.9
34.7
Rel.to Nifty
-2.9
36.9
32.9
Promoter
Public
Others
Total
Gross Margin increased by 460 bps YoY to 48.1% majorly due to better
product mix and lower commodity cost.
4QFY16
50.6
50.7
54.9
49.4
-100.0
49.3
-100.0
45.1
-100.0
Company Vs NIFTY
160
EICHERMOT
2QFY17 Result Update

Revenue grew by 35% YoY to Rs.1755 crore in 1QFY17. The motorcycle
sales grew by 31%YoY and the commercial vehicle segment grew by 15%
YoY.

2QFY17 1QFY17
Eicher Motors have reported Rs.1755 crore of revenue, a growth of 35% YoY
in 2QFY17. The motorcycle volumes clocked 33% growth YoY in 2QFY17 on
account of higher RE Classic 350 sales. The realization also improved by
3% YoY, because of price hike during the quarter. The waiting period for
Classic350' models remain 3 months and for other models it is 14-15 days.
The company has scaled up the capacity to 675000 units in FY17, looking at
the growing demand for premium motorcycles. On commencement of Vallam
Vadagal facility the total production capacity will reach to 900000 units in
FY19.This facility will commence production in 3 phases starting from
2QFY18. Market share in top-20 cities in the premium segment stands at
20%. The commercial Vehicle segment reported sales of 3176 units, a
degrowth of 13% YoY. The demand from fleet owners may remain sluggish
due to the cash crunch in the economy. CV segment market share has
improved from 11% to 13% in the current fiscal. The management has stated
that the business outlook continues to be strong in the long run for both RE
and VECV.
NIFTY
150
140
130
EBITDA Margin expanded by 390 bps YoY to 30.9% driven by benefit of

operating leverage. PAT Margin expanded by 170 bps YoY to 23.5%.

Going forward, we expect capacity addition in line with demand(RE),
seventh pay commission payout, expectation of pre-buying on new emission
norms and improving infrastructure activities in the country may be next
growth drivers for the company. But in the near term we see some stress in
demand due to demonetisation and see some tapering of growth due to
higher base in previous year. Presently, we are 'Neutral' on this stock
considering lateset demonetisation and confusion regarding the demand
scenario, with a target price of Rs. 26000. Earlier, we recommended 'BUY' on
this stock at Rs.19753, and 'Booked Profit' at Rs.24777, an upside of 25%.
120
Rs. In crore
110
100
Financials
2QFY17
1QFY17
2QFY16
QoQ
YoY
90
Sales
EBITDA
Net Profit
EBIDTA%
PAT %
1755
542
413
31%
24%
1556
470
376
30%
24%
1300
351
285
27%
22%
13%
15%
10%
35%
55%
45%
Oct-16
Nov-16
Sep-16
Aug-16
Jul-16
Jun-16
Apr-16
May-16
Mar-16
Jan-16
Feb-16
Dec-15
Nov-15
80
Naveen Kumar Dubey

naveen.dubey@narnolia.com
14
EICHERMOT
Investment Argument
>> The user segment has changed drastically for RE and 90% of the customers have bought these bikes for daily use. The
penetration in the premium segment is very low, so we assume that there is a lot of potential exist for Royal Enfield going ahead.
>> Royal Enfield's R&D centre in the UK is developing a 600-650cc twin-cylinder motorcycle, designed to serve cruiser riders of the
US and Europe. The bike is likely to be launched next year.
>> RE has expanded its footprint in the exports by opening up stores in the various export markets like; Latin America, Paris,
London, indonesia, bangkok and Madrid.
>> On the commercial vehicle front, the transportation sector has been affected mostly by the cash crunch and monthly run-rate
would be 10-20% lower in second half than the first of the current fiscal. We anticipate that this could be deferral of sales only in
near term, because around 80-85 percent commercial vehicles are financed.
Management Highlight
>> Management said that the out look for RE is strong backed by healthy order book.
>> CV space looks challenging going ahead due to cash cruch in the economy.
>> Higher growth potential international markets are Latin America and South East Asia.
>> Production is 50000 units per month and average waiting period is 3 months for classic models.
>> Currently RE dealer count is 500 and it will reach more than 600 by FY17.
>> Capex is Rs.600 crore for RE and Rs.400 crore for VECV towards setting up technical centers and capacity enhancement.
>> Multix- Plant in Jaipur, produced 650 units till december 2015. Target customers for Multix are Independent businessmen.
>> No plans for setting up plants in overseas market in near future.
>> The company plans to increase its capacity in the Pithampur facility from 5500 to 7500 units per month going forward.
About The Company

Incorporated in 1982, Eicher Motors Limited is the flagship company of the Eicher Group in India and a leading player of the Indian
automobile industry. The company is mainly engaged in the business of high end motorcycles (350cc & above) under the brand 'Royal
Enfield' and Commercial Vehicles business segment under 'Volvo Eicher Commercial Vehicles'.
EML Business Details
Eicher Motors Ltd.

(EML)
Eicher Polaris (50%)
Royal Enfield
(100%)
VECV (54.4%)
Key Risks
>> Company have plans to increase its capacity to 9 Lakh units per annum by the end of 2018. Rise in demand may increase the
waiting period for the bikes in short term, which is 3-4 months.
>> In the US market the company can face stiff competition from Harley Davidson.
>> Bajaj Auto's Avenger can be potential threat for Royal Enfield in Indian market.
15
EICHERMOT
CY13
146
760
35
24%
RATIOS
CY14
FY16
227
470
928
1275
59
117
26%
25%
FY17
581
1715
145
25%
34
7
0.7%
66
16
0.4%
41
15
0.6%
43
15
0.6%
19%
27%
24%
36%
37%
58%
34%
42%
1.3
27
41
64
0.04
1.4
23
41
63
0.00
1.9
19
37
58
0.00
0.9
19
37
58
0.00
INCOME STATEMENT
CY13
Other Income
95
Total Revenue
6905
COGS
4639
GPM
32%
Other Expenses
925
EBITDA
713
EBITDA Margin (%)
10%
Depreciation
130
EBIT
583
Interest
8
PBT
671
Tax
145
Tax Rate (%)
22%
Reported PAT
394
Dividend Paid
95
No. of Shares
3
CY14
8738
107
8846
5766
34%
1198
1115
13%
220
895
10
993
291
29%
615
159
3
FY16
15689
112
15801
10121
35%
2063
2447
16%
452
1996
9
2099
647
31%
1278
318
3
FY17
6778
203
6981
3561
47%
746
2082
31%
147
1935
3
2135
657
31%
1575
392
3
EPS
Book Value
DPS
Valuation(x)
P/E
Price / Book Value
Dividend Yield (%)
RoE
RoCE
Turnover Ratios
Asset Turnover (x)
Net Debt/Equity (x)
BALANCE SHEET
Share Capital
Reserves
Net Worth
Long term Debt
Short term Debt
Deferred Tax
Net Fixed Assets
Capital WIP
Debtors
Trade payables
Total Provisions
Net Current Assets
Total Assets
CY13
27
2028
2055
84
84
180
2139
2120
125
513
683
1191
170
1008
5337
CY14
27
2489
2516
0
58
239
2516
2728
236
562
380
1513
265
614
6408
FY16
27
3437
3464
0
86
338
3464
3314
118
834
476
2509
99
353
8479
CASH FLOW
FY17
27
4620
4648
0
37
338
4648
3724
118
360
596
1084
52
813
7663
CY13
CY14
FY16
FY17
671
993
2099
2135
Depreciation
130
220
452
147
Direct Taxes Paid
(150)
(281)
(634)
(657)
718capital changes
1126
2460
2285
716
1047
2282
656
0
(150)
(869)
0
(712) including
(972)capital (1070)
advances and
(558)
capital wor
(790)
(1087)
(1481)
(593)
(1)
0
0
0
Interest Paid
(8)
(10)
(9)
(3)
(88)
(115)
(486)
(335)
(47)
(162)
(563)
(444)
Inc/(Dec) in Cash
(121)
(202)
238
(380)
804
683
353
591
Closing Balance
683
481
591
211

16
BUY
SADBHAV ENG.
2-Dec-16
Result Update
CMP
277
Target Price
315
Upside
14%
Market Data
BSE Code
532710
NSE Symbol
SADBHAV
369/198
4,753
4923
8087
52wk Range H/L

Mkt Capital (Rs Cr)
Av. Volume
Nifty
Stock Performance
1Month
3 Month
1Year
Absolute
3.1
-4.3
-21.9
Rel.to Nifty
8.1
3.9
-23.5

4QFY16
3QFY16 4QFY15
Promoters
47%
47%
47%
Public
53%
53%
53%
Sadbhav reported subdued numbers for the Q2FY17 due to heavy monsoon
and project related issues. The company suffered Rs. 70 Cr of revenue loss
on Irrigation project in MP on account of heavy monsoon,Rs.30 Cr of
revenue loss on two road project in Karnataka due to Kaveri Water dispute
and around Rs. 35 Cr of revenue loss in BCCL (Mining) project because of
service tax related issues. Top line de grew by the 17.5% YoY to Rs. 616 Cr
as compared to Rs. 746 Cr in 2QFY16. EBITDA for the quarter stood at Rs.
65 Cr as against Rs. 81 Cr in 2QFY16, 19% down YoY with similar margin.
PAT de grew by 33% YoY to Rs. 19 Cr vs Rs.28 Cr in same period last year.
Higher 80 IA benefit led to NIL effective tax rate for the quarter and it will be
continue for the next 3 quarters based on higher revenue contribution from
road EPC and irrigation projects. Current order book stands at Rs. 9363 Cr
(including Orders won after September) which provides strong revenue
visibility going forward.
Highway & Road drives the revenue growth:Currently 5 EPC projects are under execution and another 4 HAM project will
come under execution by January. 4 out of 5 projects have achieved financial
closure and expecting to get appointment date by January, 2017. The
company has already started working on these projects before getting
appointment date and expects to book Rs.300 Cr (approx.) revenue in
Q4FY17.Irrigation projects in MP lost one and half month due to heavy
monsoon but now all the projects are on track and management is confident
to complete it quickly. Blocked working capital will be released and it will be
used to fund working capital requirements on ongoing EPC projects.
Management is in talk with BCCL to settle down services tax issues in mining
and expects Rs. 350 Cr of annual revenue from mining. EPC (Road &
Irrigation) dominated revenue in H2FY17 will boost the bottom line by way of
80 IA tax benefit.
Company Vs NIFTY
120
SADBHAV
NIFTY
110
100
90
80
Though the execution in Q2FY17 was slow due to heavy monsoon, we

expect full fledged execution in H2FY17 will help SADBHAV to register
robust revenue growth. Reduced working capital from Irrigation project and
repayment of loan from SIPL will strengthen companys balance sheet
position. SADBHAV is better placed to grab opportunities from upcoming
government spending to boost infrastructure. We are keeping our positive
stance on stock. We maintain Buy rating for a target price of 315/-
70
In Rs. Cr
60
50
40
Sandip Jabuani
Financials
FY13
FY14
FY15
FY16
FY17E
Sales
EBITDA
Net Profit
EBIDTA%
P/E
2160
394
7
18.2%
313.2
2733
436
44
15.9%
53.1
3447
580
-175
16.8%
-15.2
3878
803
-47
20.7%
-56.9
4487
929
67
20.7%
75.1
sandip.jabuani@narnolia.com
17
Demonetization impact on execution: NOT A MATERIAL ONE

Demonetization will not have any material impact on Sadbhavs standalone working is concerned. In concall, management has
clarified that from the raw material procurement to wages of labour and other related expense are channelized directly through
banking system. Though this currency clean up drive will surely have impact on different economic activities with different degree in
near term moving forward, management has indicated that Sadbhavs BOT business will not be spared from this, as traffic growth
may hamper.
Concall Update : Current Order stands at 9363 Cr (3128 Cr received after September)
Maintain Order intake of Rs. 5000-7000 Cr in FY17
Revenue loss of Rs.100 Cr due to heavy monsoon and 30 Cr on BCCL services tax issue
Growth will led by highway & construction segment for the next 2-3 years
Debtors will come down (1000 cr approx. on standalone books)as the money release from EPC project
Loan outstanding to SIPL is Rs. 280 cr and mgmt expecting to come down below 100 Cr
Rs. 320 Cr of mobilization advance on HAM project yet to receive
Achieved financial closure of 4 HAM projects and expect to get appointment date in December and commencement of work in
January.
Maintain revenue guidance of Rs. 3600-3700 Cr for FY17
Services tax issue at BCCL project will settle down by December.
No impact of demonetization on execution of the project
Tax rate will be NIL for next 3 quarter because of higher revenue from road EPC project. (all EPC project is eligible for 80 IA
benefit)
Segmental Order Book

BOT
EPC
Irrigation
Minning
10,000
9,000
2,153
8,000
7,000
2,269
2,724
2,728
2,273
2,392
5,000
4,000
3,000
2,000
1,000
1,872
1,345
2,851
1,919
2,226
1,136
2,567
2QFY15
2,015
3,021
4,430
1,442
1,902
1,276
1,836
1,187
1,097
1,982
2,193
1,811
1,404
990
573
233
174
156
3QFY15
4QFY15
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
Order book
9,500
1,975
1,644
1,749
1QFY15
2,061
1,733
6,000
3,995
3,837
3,477
3,054
Book to Bill
3.79
4.00
3.50
9,000
8,941
2.76
8,000
3.00
2.35
8,500
2.50
2.00
8,200
Maintain order Intake guidence of

Rs. 5000-7000 Cr
1.50
7,500
7,487
7,000
1.00
0.50
6,500
FY14
FY15
FY16

18
Segmental Revenue
BOT
EPC
Irrigation
Minning
Power Generation
1,200
1,000
800
600
1
68
400
200
138
72
35
147
199
100
31
132
100
132
461
428
204
168
160
407
424
402
111
33
1QFY17
2QFY17
1QFY15
2QFY15
2
90
449
470
374
300
280
201
189
166
3QFY15
4QFY15
1QFY16
2QFY16
3QFY16
4QFY16
Toll Collection
Toll Collection
250
200
150
155
139
139
147
1QFY15
2QFY15
3QFY15
165
162
1QFY16
2QFY16
200
208
214
4QFY16
1QFY17
2QFY17
Managment Expecting
toll revenue will grow
25-30% CAGR
173
100
50
-
4QFY15
3QFY16
EBITDA
EBITDA M
120
11%
11%
100
11%
11%
11%
11%
10%
80
10%
10%
10%
60
11%
10%
10%
9%
40
9%
20
72
60
78
96
89
81
74
81
87
65
9%
1QFY15
2QFY15
3QFY15
4QFY15
1QFY16
2QFY16
3QFY16
4QFY16

1QFY17
2QFY17
19
FY14
2.9
82.4
0.7
24%
RATIOS
FY15
FY16
-10.2
-2.7
89.6
104.8
0.8
0.8
-8%
-30%
FY17E
3.9
107.9
0.8
21%
53.1
1.9
0.45%
-15.2
1.7
0.53%
-56.9
1.5
0.53%
75.1
2.7
0.28%
4%
5%
-11%
4%
-3%
5%
4%
6%
0.3
76.9
29.0
51.8
3.88
0.3
72.4
30.2
50.1
4.07
0.2
77.4
18.9
37.5
4.49
0.3
77.0
18.9
38.0
4.25
INCOME STATEMENT
FY14
Other Income
30
Total Revenue
2762
COGS
2064
GPM
1
Other Expenses
153
EBITDA
436
EBITDA Margin (%)
16%
Depreciation
127
EBIT
309
Interest
449
PBT
-110
Tax
-14
Tax Rate (%)
13%
Reported PAT
44
Dividend Paid
11
No. of Shares
15
FY15
3447
44
3491
2576
1
164
580
17%
219
361
615
-210
34
-16%
-175
14
17
FY16
3878
45
3922
2730
1
192
803
21%
287
516
726
-165
17
-10%
-47
14
17
FY17E
4487
45
4532
0
0
0
929
21%
304
625
581
89
21
24%
67
0
0
EPS
Book Value
DPS
Valuation(x)
P/E
Price / Book Value
Dividend Yield (%)
RoE
RoCE
Turnover Ratios
Asset Turnover (x)
Net Debt/Equity (x)
Share Capital
Reserves
Net Worth
Long term Debt
Short term Debt
Deferred Tax
Net Fixed Assets
Capital WIP
Debtors
Trade payables
Total Provisions
Net Current Assets
Total Assets
FY14
15
1235
1250
4848
468
36
6098
6007
1
576
128
388
174
548
7871
FY15
17
1520
1537
6256
411
24
7793
9598
1
684
205
473
271
760
11933
FY16
17
1781
1798
8069
601
23
9867
13527
0
822
126
399
357
477
15809
FY17E
17
1848
1865
7869
601
23
9734
11805
1
951
0
461
332
435
14132
FY14
FY15
FY16E
FY17E
26
-233
-165
89
Depreciation
130
223
287
304
Direct Taxes Paid
56
68
17
21
469capital changes
596
890
974
786
385
2130
657
0
0
20
0
225 including
158capital advances
7300
and
1417
capital wor
(1441)
(1357)
9330
1417
0
0
0
0
Interest Paid
455
615
726
581
11
13
14
0
706
1037
1580
(781)
Inc/(Dec) in Cash
52
64
13041
1294
58
110
205
126
Closing Balance
110
174
13245
1420

20
BUY
BANK OF BARODA
2-Dec-16
Steady Quarter, Focus on Profitability
Result Update
CMP
162
Target Price
188

Upside
16%
Operating Profit grew by 15% YoY on the back of Net Interest Income turning
positive and registering the growth of 6% YoY. Operating expenses grew by
12% YoY which led the C/I ratio to stable at 46% YoY. Other income grew by
36% YoY backed by treasury income. Core fee income picked up by 13%
YoY.
Market Data
BSE Code
532134
NSE Symbol
BANKBARODA
179/104.
37235
52wk Range H/L

Mkt Capital (Rs Cr)
Av. Volume (,000)
1461
8192
Nifty
Stock Performance
1Month
Absolute
Rel.to Nifty
3 Month
1Year
9.6
(3.4)
4.8
13.0
(7.8)
1.3

2QFY17
1QFY17 4QFY16
Promoters
59.2
59.2
59.2
Public
Others
Total
40.8
40.8
40.8
100.0
100.0
100.0
Company Vs NIFTY
120
BANKBARODA
NIFTY
115
110
105
100
95
90
85
NIM improved by 21 bps YoY to 2.29% largely led by improvement in both

domestic as well as overseas NIM of 16 bps and 13 bps YoY respectively.
This improvement in NIM was backed by decline in cost of fund which was
supported by healthy CASA and shedding of high cost of deposits. Overseas
NIM improved on the back of focus on high yielding assets. Management has
targeted the domestic NIM of 3% and overseas NIM more than 1%.
Stress Assets Decline

Slippages were restricted to Rs 2861 Cr against Rs 6096 Cr on 1Q FY17
giving a sign of improvement from this quarter. Healthy recovery & upgradation has also helped to decline the net NPA at Rs 42949 Cr against Rs
42992 Cr QoQ. Recovery & Up-gradation increased by 8% QoQ. The GNPA
and NNPA of the bank stand at 11.35% and 5.46% against 11.15% and
5.73% in previous quarter. PCR improved to 63% against 60% QoQ.
Standard restructured assets now stands at Rs 13860 Cr which declined by
25 QoQ. This quarter management invoked an SDR of Rs 2370 Cr and
there was no 5/25 refinance. These all give us comfort on stress assets
which seems to improve further going forward. However management has
maintained their stance on the earlier guidance of GNPA at RS 45000 Cr to
Rs 50000 Cr in FY17.
Advances Consolidate
As the focus of the management is on profitability, balance sheet continues
to be on consolidation phase. Thus, resulting decline in advances by 15%
YoY. Domestic advances declined by 11% and overseas advances declined
by 22% YoY. As a strategy on overseas portfolio, management has shifted
focused towards higher yielding assets i,e. local credit and syndicated loans.
Buyers credit which comprise low yield will decline further. Corporate
portfolio declined by 10% YoY. Home loan portfolio increased by 12% YoY.
However the loan growth must pick up for the further improvement in
operating profitability.
80
DEEPAK KUMAR
Deepak.kumar@narnolia.com
21
BANKBARODA
Concall Highlights:
>> Deacceleration of international portfolio was due to shed in low yield assets.
>> Out of Rs 45000 Cr high cost of deposits, 90% is already shed and rest will be done in 3Q FY17.
>> International cost of deposits has gone up due to LIBOR effect.
>> Efforts are to remix the portfolio towards higher yielded assets in overseas market. Focus on local credit and syndicated
loans which gives yield of 3.6% as compared to 1.2% on buyers credit. Buyers credit are consistently deacreasing.
>> In 2 days following the demonitization BoB has collected Rs 11500 Cr of which Rs 9500 Cr has gone into CASA.
>> Management holds the earlier guidance of slippages. Target the NNPA of less than 2% in FY19-20.
>> Due RBI guidelines on ratings of corporate exposure of above Rs 100 Cr, management expects deceleration in capital.
>> Targeting domestic NIM of 3% and overseas NIM of 1%- 1.2%.
>> CASA target of 35%.
>> Target to grow at a CAGR of 12%-15% from FY14 numbers over the 3 years period.
(Rs in Crore)
Quarterly Performance
Financials
Interest Inc.
Interest Exp.
NII
Other Income
Total Income
Ope Exp.
PPP
Provisions
PBT
Tax
Net Profit
2QFY15
10826
7425
3401
992
4393
1990
2403
888
1515
411
1104
3QFY15
10718
7432
3286
1090
4376
2037
2339
1262
1077
743
334
4QFY15
10762
7590
3172
1295
4467
1774
2694
1818
876
278
598
1QFY16
11276
7817
3460
967
4427
2225
2202
600
1602
550
1052
2QFY16
11156
7912
3244
1144
4389
2051
2337
1892
445
321
124
3QFY16
10614
7909
2705
1113
3818
2114
1704
6165
-4460
-1118
-3342
4QFY16
11014
7684
3330
1775
5105
2533
2572
6858
-4285
-1055
-3230
1QFY17
10434
7062
3371
1444
4815
2146
2669
2004
665
242
424
2QFY17
10485
7059
3426
1561
4988
2297
2690
1796
894
342
552
YoY %
-6%
-11%
6%
36%
14%
12%
15%
-5%
101%
7%
344%
QoQ%
0%
0%
2%
8%
4%
7%
1%
-10%
34%
42%
30%
Profitability Metrix
Ratios
Yield On Advances
Cost of Deposits
NIM% (Overall)
NIM% (Domestic)
NIM% (Overseas)
NII Growth %
C/I Ratio
Other Inc./Net Inc. %
Tax %
PAT to Total Income%
2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 YoY(bps) QoQ(bps)
8.4
8.1
7.7
7.9
7.6
7.0
6.9
7.2
7.3
(0.35)
0.03
5.2
5.2
5.2
5.1
5.1
5.0
5.0
4.7
4.8
(0.26)
0.11
2.4
2.2
2.2
2.3
2.1
1.7
2.2
2.2
2.3
0.21
0.06
3.0
2.9
2.8
2.9
2.7
2.1
2.7
2.8
2.9
0.16
0.05
1.2
0.9
1.0
0.9
0.9
0.9
0.9
1.0
1.0
0.13
17.5
7.5
1.5
3.9
(4.6)
(17.7)
5.0
(2.6)
5.6
10.20
8.16
45.3
46.6
39.7
50.3
46.7
55.4
49.6
44.6
46.1
(0.69)
1.50
22.6
24.9
29.0
21.8
26.1
29.1
34.8
30.0
31.3
5.24
1.31
27.1
69.0
31.7
34.3
72.0
25.1
24.6
36.3
38.3
(33.78)
1.93
25.1
7.6
13.4
23.8
2.8
(87.5)
(63.3)
8.8
11.1
8.23
2.27
22
BANKBARODA
Outlook & Valuation:
Focus of the management on profitability has resulted in steady quarter this time. BoB has shown a sign of improvement in its
profitability. In the clean up exercise, BoB has recognised huge stress assets in its balance sheet. Going forward we expect the
stress assets to decline significantly thus resulting in credit cost to decline. However BoB needs to come out of the consolidation
of advances and should grow its loan portfolio to further support the operating profitability. Strong capitalization of 12.9% CRAR
(Tier 1 at 10.6%) will help the bank to grow further without any near term dilution. We recommend BUY with the target price of
Rs 188.
Other income Break Up

>>Commission, Exchange,
Brokerage
>>Incidental Charges
>>Other Miscellaneous
Income
>>FX
Profits (Treasury)
Total Fee-Based Income
Trading Gains
Recovery from PWO
Total Other Income
(Rs in Crore)
2QFY15
333
104
93
252
782
179
31
992
Yield On Advances
3QFY15
373
79
106
253
811
244
36
1090
4QFY15
429
100
101
244
874
360
61
1295
Cost of Deposits
1QFY16
346
79
94
278
797
157
13
967
2QFY16
361
95
131
253
841
224
79
1144
3QFY16
339
91
128
241
799
289
24
1112
NIM
4QFY16
454
116
111
481
1162
509
104
1775
1QFY17
339
106
139
264
848
557
39
1444
NII Growth %
10.0
20.0
8.0
15.0
6.0
10.0
4.0
5.0
2.0
(5.0)
2QFY17
372
148
155
273
948
546
68
1562
YoY%
3%
55%
18%
8%
13%
144%
-14%
37%
QoQ%
10%
40%
12%
3%
12%
-2%
74%
8%
C/I Ratio
60.0
50.0
40.0
30.0
20.0
(10.0)
(15.0)
(20.0)
10.0
-
BANKBARODA
Assets Quality Performance
GNPA (Rs)
GNPA %
NNPA (Rs)
NNPA %
Slippages (Rs)
Recovery & Upgradation
Gross Restr. Assets (Rs)
PCR %
2QFY15
13058
3.32
6705
3QFY15
15492
3.85
8291
4QFY15
16261
3.72
8069
1QFY16
17274
4.13
8470
2QFY16
23710
5.56
12798
3QFY16
38934
9.68
21806
4QFY16
40521
9.99
19406
1QFY17
42992
11.15
20783
2QFY17
42949
11.35
19342
YoY%
81%
1.04
51%
QoQ
%
0%
1.74
1853
513
23371
65
2.11
2852
380
23100
62
1.89
1789
354
31572
65
2.07
1908
827
31257
65
3.08
6962
414
30170
58
5.67
15785
325
30716
53
5.06
5932
3200
29004
60
5.73
6096
2482
29809
60
5.46
2861
2687
28464
63
0.77
-59%
550%
-6%
0.08
####
####
8%
-5%
0.05
0.02
-7%
Specific PCR %
GNPA %
NNPA %
70
60
50
40
30
20
10
-
12.00
10.00
8.00
6.00
4.00
2.00
-
Advances
Net Advances (Rs in Cr)
Advances Growth YoY %
>> Growth QoQ %
2QFY15
385766
13.51
1.05
3QFY15
393630
11.69
2.04
4QFY15
428065
7.82
8.75
1QFY16
408388
6.97
-4.60
2QFY16
414900
7.55
1.59
3QFY16
384272
-2.38
-7.38
4QFY16
383770
-10.35
-0.13
1QFY17
362766
-11.17
-5.47
2QFY17
354150
-14.64
-2.38
Advances Break Up %
>>Domestic
>>International
2QFY15
67.08
32.92
3QFY15
66.28
33.72
4QFY15
68.18
31.82
1QFY16
67.54
32.46
2QFY16
66.92
33.08
3QFY16
67.45
32.55
4QFY16
68.60
31.40
1QFY17
69.09
30.91
2QFY17
69.60
30.40
Deposits
Deposits (Rs in Cr)
>> Growth YoY %
>> Growth QoQ %
CASA % (Domestic)
CASA Growth YoY %
>> Growth QoQ %
Credit Deposit Ratio
2QFY15
566926
16.91
2.77
31.89
15.91
6.78
68.05
3QFY15
564600
12.07
-0.41
32.42
12.93
0.75
69.72
4QFY15
617560
8.55
9.38
33.01
11.25
9.27
69.32
1QFY16
593087
7.51
-3.96
31.89
10.76
-5.78
68.86
2QFY16
612458
8.03
3.27
31.95
4.11
0.37
67.74
3QFY16
589687
4.44
-3.72
29.97
-5.11
-8.17
65.17
4QFY16
574038
-7.05
-2.65
33.57
-7.14
6.93
66.85
1QFY17
562174
-5.21
-2.07
33.83
-1.16
0.29
64.53
2QFY17
567531
-7.34
0.95
34.23
1.72
3.29
62.40

23
BANKBARODA
INCOME STATEMENT (Consolidated)
(Rs in Crore)
FY13
FY13
FY14
FY15
FY16
26,611
28,657
31,669
30,700
Credit-Deposit(%)
69.3
69.8
69.3
66.9
Income on Investments
7,888
9,294
10,604
11,334
CASA % (Domestic)
30.4
31.8
33.0
33.6
Intt. on bal.with RBI & other inter-bank Funds
1,538
1,671
1,718
1,470
Efficiency Ratios
404
841
924
2,295
Employ. Cost as a % of Total Inco. (%)
22.0
23.5
22.6
26.4
Total Interest Income
36,442
40,463
44,915
45,799
Other Exp./Total Inco. (%)
16.3
17.7
20.8
24.2
Total Interest expended
24,486
27,604
30,547
32,107
Cost Income Ratio (%)
38.3
41.2
43.4
50.6
Net Interest Income
11,956
12,858
14,368
13,692
Spread Analysis As Calculated

Yield on Advances (%)
8.4
7.7
7.5
7.3
Yield on Investments (%)
7.3
7.3
8.1
9.0
Interest / discount on advances / bills
Others
FY14
FY15
FY16
RATIOS
Business Ratios
Other Income
4,511
5,555
5,449
5,992
Total Income
16,466
18,414
19,818
19,684
6,306
7,592
8,604
9,962
Yield on Earning Assets (%)
7.5
6.8
6.6
6.8
Cost of Deposits (%)
5.2
4.8
4.7
4.9
Cost of Fund (%)
5.3
4.9
4.7
5.0
Total Operating Expenses

Pre Provisioning Profit
10,160
10,821
11,213
9,721
Provisions (other than tax) and Contingencies
4,965
4,825
5,230
15,954
Profit Before Tax
5,195
5,996
5,983
(6,233) Interest Spread (%)
2.3
1.9
1.9
1.9
444
1,065
2,151
(1,180) NIM (%)
2.4
2.1
2.0
2.0
4,804
5,001
3,912
(5,068)
RoE %
16.1
14.4
9.7
-15.3
RoA %
0.9
0.8
0.5
-0.8
67.2
68.2
68.0
70.1
Provisions/PPP (%)
95.6
80.5
87.4
-256.0
Other Income/Net Income (%)
27.4
30.2
27.5
30.4
Tax Rate (%)
8.6
17.8
35.9
18.9
Tax
Net Profit attributable to the group
BALANCE SHEET (Consolidated)
Profitability Ratio
(Rs in Crore) Interest Expended / Interest Earned (%)
FY13
FY14
FY15
FY16
423
431
444
462
Reserves & Surplus
32859
37416
41574
42041
Deposits
482639
579997
629981
586690
Asset Quality Ratio
Borrowings
26553
36976
35502
33845
GNPA (%)
2.40
2.94
3.72
9.99
Other Liabilities & Provisions
16805
21136
26290
27947
GNPA(Rs)
7,983
11,876
16,261
40,521
Total Capital & Liabilities
559388
676114
733977
691179
NNPA (%)
1.28
1.52
1.89
5.06
NNPA (Rs)
4,192
6,035
8,069
19,406
68.24
Capital
Cash & Balances with Reserve Bank of India
14151
19445
23557
22811
PCR (%)
Balances with Banks and Money at Call & Short Notice 73551
114911
128074
114188
Gross Restr. Assets (Rs)
65.45
64.99
60.06
22,553
31,572
29,004
Investments
125617
122113
130246
128894
Advances
333625
403715
435415
391486
Fixed Assets
2550
2849
2978
6359
Capital Adequacy Ratio (%)
Other Assets
9894
13081
13706
27441
Tier I Capital (%)
13.3
12.3
12.6
13.2
10.1
9.3
9.9
10.8
Total Assets
559388
676114
733977
691179
Tier II Capital (%)
3.2
3.0
2.7
2.4
Capital Adequacy Ratio

24
Narnolia Securities Ltd

201 | 2nd Floor | Marble Arch Building | 236B-AJC Bose Road |
Kolkata-700 020 , Ph : 033-40501500
email: narnolia@narnolia.com, website
: www.narnolia.com
Risk Disclosure & Disclaimer: This report/message is for the personal information of
the authorized recipient and does not construe to be any investment, legal or taxation
advice to you. Narnolia Securities Ltd. (Hereinafter referred as NSL) is not soliciting any
action based upon it. This report/message is not for public distribution and has been
furnished to you solely for your information and should not be reproduced or
redistributed to any other person in any from. The report/message is based upon publicly
available information, findings of our research wing East wind & information that we
consider reliable, but we do not represent that it is accurate or complete and we do not
provide any express or implied warranty of any kind, and also these are subject to change
without notice. The recipients of this report should rely on their own investigations,
should use their own judgment for taking any investment decisions keeping in mind that
past performance is not necessarily a guide to future performance & that the the value of
any investment or income are subject to market and other risks. Further it will be safe to
assume that NSL and /or its Group or associate Companies, their Directors, affiliates
and/or employees may have interests/ positions, financial or otherwise, individually or
otherwise in the recommended/mentioned securities/mutual funds/ model funds and
other investment products which may be added or disposed including & other
mentioned in this report/message.

IEA Report: 9th December, 2016

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IEA Report

9th Dec 2016

9th Dec 2016

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Lauras Labs Ltd

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IEA Edition No.-

Demonetization may impact Q3FY17 sales of the company. Generally 3rd

Previous Target Price

Change from Previous

450 cr expansion on the cards

52wk Range H/L

Outlook and Valuation

Narnolia Securities Ltd,

Trend of EBITDA , EBIT & PAT Margin(%):

Narnolia Securities Ltd,

Recent management commentaries:

Segment wise performance

Segment wise Revenue(Cr)

Professional Electronics & Industrial Equipment

Narnolia Securities Ltd,

Financials Snap Shot

CASH FLOW STATEMENT

Capital expenditure on fixed assets

Narnolia Securities Ltd,

Limited Downside- target- 88/Praj Industries

Previous Target Price

52wk Range H/L

Share Holding Pattern-%

Higher Crude Price to Support Operational performance

Q2FY17 Result Highlights

Outlook and Valuation

Key take way from Concall / Managment Interviwe

Order Book and Order Inflow growth

Order Inflow Growth (YoY%)

2QFY17 (Order Intake)

Narnolia Securities Ltd,

Financials Snap Shot

Narnolia Securities Ltd,

Lauras Labs Ltd

100% Book Building

*Rs (426 - 428)/Equity Share

Min App Size

Karvy Computershare Pvt Ltd

No of shares ( Post & Pre Issue)

Fresh Issue made

Bid allocation pattern

Objects of the Issue:

Please refer to the Disclaimers at the end of this Report.

Lauras Labs Ltd

EQUITY AND LIABILITIES

Non - current liabilities

Long-term loans and advances

OIL AND NATURAL GAS CORPORATION LTD.

Previous Target Price

Change from Previous

52wk Range H/L

ONGC has posted revenue of Rs.18395 Cr in 2QFY17 as compared to

Gas production in 2QFY17 is 5.807BCM as compared to 5.702 BCM in

15 oil and gas discoveries notified till 2QFY17