19december 2017 - India - Daily

INDIA DAILY
December 19, 2017 India 18-Dec 1-day 1-mo 3-mo

Sensex 33,602 0.4 0.8 3.7
Nifty 10,389 0.5 1.0 2.4
Contents Global/Regional indices

Dow Jones 24,792 0.6 6.1 10.8
Special Reports Nasdaq Composite 6,995 0.8 3.1 8.3
Strategy FTSE 7,537 0.6 2.1 3.6

Nikkei 22,902 0.0 2.3 12.8
Strategy: Politics over, earnings and macro back
Hang Seng 29,194 0.5 (0.0) 4.1
 BJP wins narrowly in Gujarat but handsomely in Himachal Pradesh KOSPI 2,479 (0.1) (2.2) 2.6
 Earnings recovery versus weaker macro and rich valuations - key themes for Value traded – India
CY2018 Cash (NSE+BSE) 373 339 355
Derivatives (NSE) 10,005 5,338 4,042
 Earnings growth is critical given domestic and global macro headwinds and
full valuations Deri. open interest 4,081 4,080 3,751
 Portfolio positioning - 'turnaround' stories; see Exhibit 7 for Model Portfolio
Daily Alerts Forex/money market
Change, basis points

Sector alerts 18-Dec 1-day 1-mo 3-mo
Internet: Hungry for more Rs/US$ 64.2 5 (84) (9)
10yr govt bond, % 7.4 3 18 46

 Food delivery companies post strong revenue growth in FY2017
Net investment (US$ mn)
 Delivery companies are looking to expand fleets to gain scale 15-Dec MTD CYTD
 Scale and higher commission rates can boost unit economics FIIs (136) (433) 8,321
MFs 135 686 16,872

 Food delivery market is expanding, though competitive intensity may also Top movers
increase
Change, %
 Zomato: ramp-up of delivery business may need further investments Best performers 18-Dec 1-day 1-mo 3-mo
TGBL IN Equity 290.9 1.4 11.9 34.5
BHARTI IN Equity 526.3 1.6 6.6 33.3
SHTF IN Equity 1416.8 0.7 8.9 32.5
TTAN IN Equity 840.1 0.9 6.8 30.9
UBBL IN Equity 1039.1 1.7 (5.7) 29.9
Worst performers
RCAPT IN Equity 412.2 0.2 (4.9) (45.3)
RCOM IN Equity 11.8 (0.4) (2.5) (41.3)
RPWR IN Equity 36.4 0.7 (1.6) (17.1)
YES IN Equity 311.2 (1.5) 1.6 (16.6)
HDIL IN Equity 53.2 (0.4) (16.9) (15.7)
Kotak Institutional Equities Research

kotak.research@kotak.com . Mumbai: +91-22-4336-0000
For Private Circulation Only. FOR IMPORTANT INFORMATION ABOUT KOTAK SECURITIES’ RATING SYSTEM AND OTHER DISCLOSURES.
REFER TO THE END OF THIS MATERIAL.
INDIA
Strategy
Market DECEMBER 19, 2017
UPDATE
BSE-30: 33,602
Politics over, earnings and macro back. BJP’s victory in the recent state elections of
Gujarat and Himachal Pradesh should remove politics from the equation for most of
CY2018 and shift the focus of the market to earnings and macro. The Indian market
faces two opposing forces in CY2018—(1) likely strong earnings recovery across sectors
and (2) possible de-rating in certain sectors given high valuations and domestic and
global headwinds, especially if inflation and crude oil prices were to surprise negatively.
BJP wins narrowly in Gujarat but handsomely in Himachal Pradesh QUICK NUMBERS
The BJP’s narrow victory in the recent state elections in Gujarat (99 seats out of 182 seats) and  BJP won 99 seats
handsome victory in Himachal Pradesh (44 seats out of 68 seats) will extend the BJP’s footprint out of 182 seats in
over most parts of central, north and west India (see Exhibit 1 for ruling parties and dates of the recent Gujarat
next state elections). We do not see any major shift in the government’s economic policies as it elections
will likely (1) continue with execution of broader ongoing reforms in areas of fiscal (GST) and
investment (ease of doing business) and (2) increase focus on specific programs to revive  FY2019 average CPI
investment and the rural economy (increased spending on rural electricity, roads and water). inflation at 5%
versus 3.7% in
Earnings recovery versus weaker macro and rich valuations—key themes for CY2018
FY2018
As discussed in our CY2018 strategy report (Follow the earnings released on December 8, 2017),
the performance of the Indian market will depend on two factors—(1) likely strong earnings
 Nifty-50 Index is
growth due to ‘normalization’ of operating conditions in several sectors, favorable global trading at 17.7X
commodity cycles and moderate domestic economic recovery that will support consumption (see FY2019E ‘EPS’ (free-
Exhibit 2 for breakdown of net profits of Nifty-50 Index over FY2015-20E) and (2) possible risk of float basis)
de-rating in certain sectors given full valuations for the market (see Exhibit 3), rich valuations for
consumption sectors (see Exhibit 4) and weaker macroeconomic conditions (see Exhibit 5).
Earnings growth is critical given domestic and global macro headwinds and full valuations
In our view, strong earnings growth (minimum 15%) for the broad market will be critical for the
market to deliver positive returns in CY2018. The full valuations of the Indian market (Nifty-50
Index) at 18.3X 12-month forward earnings (see Exhibit 6) largely factor in the 23% growth in
net profits for FY2019 projected by us. We are somewhat confident about earnings but see
risks to multiples if (1) domestic macro conditions were to worsen on higher inflation and crude
oil prices and (2) global macro conditions were to turn less favorable (China slowdown).
Portfolio positioning—‘turnaround’ stories; see Exhibit 7 for Model Portfolio

Sanjeev Prasad
sanjeev.prasad@kotak.com
Exhibit 8 shows the ‘schematic’ representation of a few large-cap. stocks on a 2X2 matrix of Mumbai: +91-22-4336-0830
(1) business model (strong, mediocre) and (2) valuations (low, high). We use this qualitative and
quantitative approach to sort stocks into quadrants (much like the sorting hat in the Harry Sunita Baldawa
sunita.baldawa@kotak.com
Potter series). Our sorting hat finds very few stocks in the most desirable quadrant (strong Mumbai: +91-22-4336-0896
business models and low valuations) currently. Thus, we favor a combination of (1) stocks with
Anindya Bhowmik
strong business models and high valuations (these stocks may go through time correction) and
anindya.bhowmik@kotak.com
(2) stocks with ‘mediocre’ business models but with potential improvement (‘turnaround’ Mumbai: +91-22-4336-0897
stories) and reasonable valuations. We avoid stocks with mediocre business models (certain
building material companies and NBFCs) trading at high valuations (likely to see price
correction).

kotak.research@kotak.com
Mumbai: +91-22-4336-0000
For Private Circulation Only. FOR IMPORTANT INFORMATION ABOUT KOTAK SECURITIES’ RATING SYSTEM AND OTHER DISCLOSURES, REFER TO THE END OF THIS MATERIAL.
Strategy India
Clarification on our 2X2 framework

We clarify that we use the term ‘mediocre’ in a relative sense when evaluating the business
models of companies. Certain sectors by definition will have weak business models
compared to other sectors even though the companies themselves may have very strong
positions within the sectors.
For example, commodity sectors will naturally have mediocre business models given lack of
pricing power at most times of commodity cycles (except at times of tight supply-demand
balance) and will generate mediocre RoEs for most periods of the cycle. Similarly, consumer
staple companies with their control over traditional distribution channels have strong ‘moats’
and thus, enormous pricing power, which allows them to generate high RoEs consistently.
Exhibit 1: BJP is now in power in almost all of the states in central, north and west India
India's current political situation of various states and their respective election timeframe
Source: Election Commission, Kotak Institutional Equities
KOTAK INSTITUTIONAL EQUITIES RESEARCH 3

India Strategy
Exhibit 2: Automobiles, banking and metals & mining sectors to drive incremental profits in FY2018-20E
Break-up of net profits of the Nifty-50 Index across sectors, March fiscal year-ends, 2015-20E (based on current constituents)
Incremental profits
Net profits (Rs bn) Contribution (%) 2017 2018E 2019E
2015 2016 2017 2018E 2019E 2020E 2016 2017 2018E 2019E 2020E (Rs bn) (%) (Rs bn) (Rs bn) (%)
Automobiles 291 324 309 338 453 518 11 9 9 10 10 (15) (3) 30 114 14
Tata Motors 142 140 94 95 169 195 5 3 3 4 4 (46) (9) 1 74 9
Banking 641 592 618 709 1,002 1,317 20 18 20 23 26 26 5 91 293 36
PSU banks 131 100 105 111 253 392 3 3 3 6 8 5 1 6 142 17
Private banks 510 492 514 598 749 925 17 15 17 17 18 21 4 85 151 18
Cement 35 32 38 42 58 75 1 1 1 1 1 6 1 4 16 2
Consumers 148 150 163 182 205 231 5 5 5 5 5 12 2 19 23 3
Energy 559 660 958 890 992 1,073 23 28 25 23 21 297 58 (68) 102 12
IOCL 42 103 259 168 185 191 4 8 5 4 4 155 30 (91) 17 2
ONGC 189 174 216 225 266 290 6 6 6 6 6 42 8 9 41 5
Reliance Industries 236 253 299 322 353 390 9 9 9 8 8 46 9 23 31 4
Industrials 33 41 59 78 88 105 1 2 2 2 2 18 3 19 9 1
Infrastructure 12 29 39 38 48 52 1 1 1 1 1 10 2 (2) 11 1
Media 10 10 13 14 17 20 0 0 0 0 0 3 1 0 3 0
Metals & Mining 209 155 225 297 408 448 5 7 8 9 9 70 14 72 111 13
Coal India 137 143 93 104 133 143 5 3 3 3 3 (51) (10) 11 28 3
Tata Steel 0 (19) 40 54 66 75 (1) 1 2 1 1 60 12 14 11 1
Vedanta 51 28 73 91 150 164 1 2 3 3 3 45 9 17 59 7
Pharmaceuticals 122 133 140 108 146 179 5 4 3 3 3 7 1 (32) 38 5
Others 1 11 18 21 25 30 0 1 1 1 1 7 1 3 4 1
Technology 505 553 604 609 641 694 19 18 17 15 14 51 10 5 32 4
Telecom 80 63 61 45 70 123 2 2 1 2 2 (2) (0) (16) 25 3
Utilities 148 154 177 198 241 264 5 5 6 5 5 22 4 21 43 5
Nifty-50 Index 2,794 2,908 3,422 3,569 4,394 5,128 100 100 100 100 100 514 100 147 825 100
Nifty-50 change (%) 3.4 4.1 17.7 4.3 23.1 16.7
Nifty-50 EPS (FF) 398 384 439 478 588 694
Source: Kotak Institutional Equities estimates
Exhibit 3: We expect net profits of the Nifty-50 Index to grow 23% in FY2019 and 17% in FY2020
Valuation summary of Nifty-50 sectors (full-float basis), March fiscal year-ends, 2018E-20E (based on current constituents)
Mcap. Adj. mcap. Earnings growth (%) PER (X) EV/EBITDA (X) Price/BV (X) Div. yield (%) RoE (%)
(US$ bn) (US$ bn) 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E
Automobiles 126.2 67.3 9.7 33.8 14.4 24.2 18.1 15.8 11.6 9.1 7.8 4.3 3.6 3.1 0.8 1.0 1.1 17.8 20.1 19.5
Banking 293.6 222.4 14.6 41.4 31.4 26.6 18.8 14.3 — — — 2.7 2.4 2.1 0.9 1.0 1.2 10.3 12.9 14.9
Cement 26.6 10.0 10.8 38.9 29.0 40.6 29.3 22.7 17.0 12.9 10.3 3.7 3.3 2.9 0.5 0.5 0.5 9.0 11.3 13.0
Consumers 111.9 57.8 12.0 12.5 12.8 39.5 35.1 31.1 26.4 23.4 20.7 11.3 10.7 10.1 1.7 2.0 2.2 28.7 30.5 32.6
Energy 193.6 74.3 (7.1) 11.5 8.2 14.0 12.5 11.6 8.7 7.3 6.6 1.7 1.6 1.4 2.0 2.2 2.4 12.1 12.4 12.3
Industrials 26.6 23.4 32.4 11.9 20.2 21.8 19.5 16.2 19.2 16.8 15.1 3.3 3.0 2.7 1.7 1.8 2.2 15.3 15.6 16.9
Infrastructure 13.0 5.0 (4.1) 28.6 7.2 22.3 17.4 16.2 15.0 12.1 11.2 4.1 3.4 2.9 0.6 1.0 1.2 18.2 19.7 18.2
Media 8.6 4.9 3.1 24.1 18.6 40.0 32.2 27.2 25.2 21.0 17.5 7.0 6.0 5.3 0.6 0.8 1.0 17.5 18.8 19.4
Metals & Mining 63.1 27.4 31.8 37.4 9.9 13.7 9.9 9.0 7.8 6.4 5.8 2.2 2.0 1.8 2.8 3.7 4.0 16.2 20.0 19.5
Pharmaceuticals 45.6 24.5 (22.7) 35.2 22.0 27.0 20.0 16.4 14.8 10.9 8.8 3.1 2.7 2.4 0.5 0.8 1.0 11.6 13.7 14.7
Others 5.6 4.0 16.8 19.7 17.2 17.1 14.3 12.2 10.7 9.0 7.7 4.0 3.3 2.7 1.2 1.4 1.7 23.5 23.0 22.3
Technology 161.9 69.5 0.8 5.2 8.2 17.1 16.2 15.0 11.9 10.7 9.7 4.2 3.8 3.5 2.5 3.0 3.3 24.8 23.5 23.0
Telecom 43.1 14.7 (25.9) 56.5 74.4 61.6 39.4 22.6 10.3 9.1 7.2 3.3 3.3 3.0 0.9 1.1 1.5 5.4 8.3 13.5
Utilities 39.1 15.3 12.0 21.5 9.5 12.7 10.4 9.5 9.4 7.8 6.9 1.6 1.4 1.3 2.0 2.5 2.7 12.4 13.6 13.5
Nifty-50 Index 1,159 620 4.3 23.1 16.7 20.9 17.0 14.5 11.1 9.3 8.2 2.9 2.6 2.3 1.5 1.8 2.0 13.8 15.3 16.0
Nifty-50 Index (ex-energy) 965 546 8.7 27.0 19.2 23.2 18.2 15.3 12.2 10.2 9.0 3.4 3.0 2.7 1.4 1.7 1.9 14.5 16.5 17.4
Notes:
(a) We have used consensus numbers for Bosch, Indiabulls Housing Finance and Kotak Mahindra Bank.
4 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Strategy India
Exhibit 4: Most of the 'consumption' sectors (staples, discretionary, financing of consumption) are trading at rich valuations
Rolling PB & PE charts of various sectors, March fiscal year-ends, 2002-18 (X)
PSU banks P/B PSU banks avg. Private banks P/B Pvt banks avg.
2.5 4.0
3.5
2.0
3.0
1.5 2.5
2.0
1.0
1.5
0.5 1.0
Dec-02
Dec-05
Dec-12
Dec-15
Dec-03
Dec-04
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-13
Dec-14
Dec-16
Dec-17
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Notes: Notes:
(a) We have included BOB, OBC, PNB, SBI and Union Bank. (a) We have included Axis, HDFCB, ICICI, IIB and Yes.
Consumer staples P/E Consumers avg. Consumer discretionary P/E Consumer Discretionary avg.
40 55
50
35
45
30 40
35
25
30
20 25
20
15
15
10 10
Dec-02
Dec-07
Dec-12
Dec-13
Dec-03
Dec-04
Dec-05
Dec-06
Dec-08
Dec-09
Dec-10
Dec-11
Dec-14
Dec-15
Dec-16
Dec-17
Dec-02
Dec-07
Dec-12
Dec-17
Dec-03
Dec-04
Dec-05
Dec-06
Dec-08
Dec-09
Dec-10
Dec-11
Dec-13
Dec-14
Dec-15
Dec-16
Notes: Nores:
(a) We have included CLGT, Dabur, GCPL, HUL, ITC, NESTLE, TGBL. (a) We have included APNT, HAVL, JUBI, TTAN and UNSP.
Source: Factset, Kotak Institutional Equities
Exhibit 5: We expect a modest recovery in India’s economic growth in FY2019; however, inflation will
be on the higher side in FY2019
Trend in key macroeconomic indicators, March fiscal year-ends, 2012-19E
2012 2013 2014 2015 2016 2017 2018E 2019E

Real GVA growth (%) 6.7 5.4 6.1 7.2 7.9 6.6 6.5 7.1
CPI inflation (%) — 9.9 9.4 5.9 4.9 4.5 3.7 5.0
WPI inflation (%) 8.9 7.4 6.0 1.3 (3.6) 1.8 3.2 4.5
IIP growth (%) 2.9 1.1 3.3 4.1 3.3 4.6 3.3 3.6
GFD/GDP (%) 5.9 4.9 4.5 4.1 3.9 3.5 3.5 3.2
CAD/GDP (%) (4.2) (4.8) (1.7) (1.3) (1.1) (0.7) (1.8) (1.9)
BOP (US$ bn) (12.8) 3.9 15.6 61.4 17.9 21.6 23.0 11.6
USD/INR (average) 48.0 54.4 60.4 61.2 65.4 67.2 64.6 65.5
Notes:
(a) IIP growth print post FY2014 is based on new series.
Source: RBI, CEIC, Kotak Institutional Equities estimates

India Strategy
Exhibit 6: Full valuations for the broad market

12-m rolling forward PE, March fiscal year-ends, 2002-18 (X)
P/E (X) Avg Mean+1SD Mean-1SD

24
20
16
12
4
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Notes:
(a) We use actual EPS (12-month forward basis) for computing P/E for historical period.
Exhibit 7: We favor 'turnaround' sectors and stocks trading at reasonable valuations

KIE large-cap. Model Portfolio
Price (Rs) KIE weight Price (Rs) KIE weight

Company 18-Dec-17 Rating (%) 18-Dec-17 Rating (%)
Automobiles Industrials/Construction
Mahindra & Mahindra 1,523 BUY 4.0 L&T 1,218 ADD 4.0
Maruti Suzuki 9,308 ADD 3.0 Industrials/Construction 4.0
Tata Motors 406 BUY 5.0 Metals & Mining
Automobiles 12.0 Hindalco Industries 250 BUY 2.0
PSU Banking JSW Steel 254 ADD 2.0
State Bank of India 319 BUY 6.0 Vedanta 309 BUY 4.0
PSU Banking 6.0 Tata Steel 705 ADD 2.0
Pvt. Banking/Financing Metals & Mining 10.0
HDFC 1,720 ADD 6.0 Others
HDFC Bank 1,879 REDUCE 9.0 InterGlobe Aviation 1,142 NR 2.0
ICICI Bank 309 BUY 9.0 Others 2.0
ICICI Prudential Life 381 ADD 2.0 Pharmaceuticals
IndusInd Bank 1,679 REDUCE 2.0 Cipla 592 BUY 4.0
Max Financial Services 556 BUY 3.0 Pharmaceuticals 4.0
Pvt. Banking/Financing 31.0 Technology
Consumers Infosys 1,015 NR 7.0
Colgate-Palmolive (India) 1,079 ADD 2.0 Technology 7.0
ITC 263 ADD 3.0 Telecom
Consumers 5.0 Bharti Airtel 526 ADD 4.0
Energy Telecom 4.0
GAIL (India) 496 BUY 3.0 Utilities
IOCL 410 REDUCE 2.0 Power Grid 200 BUY 3.0
Petronet LNG 254 ADD 2.0 Utilities 3.0
Reliance Industries 921 REDUCE 5.0 BSE-30 33,602 100.0
Energy 12.0
Source: Companies, Kotak Institutional Equities estimates

Strategy India
Exhibit 8: Very few stocks are right now in the desirable quadrant of strong business models and low valuations
Valuation versus business strength of various listed companies in India
Strong business, high valuation Strong business, low valuation

HDFCB
business
Strong
HUVR IIB
MSIL CLGT
BAF LT
INFO TTMT
EIM SUNP CIPLA
business Model score
DRRD ARBP
Business
VEDL
AXSB ICICIBC
CIFC TATA
SBIN
UTCEM
BHARTI
Mediocre
SHTF
Mediocre business, high valuation Mediocre business, low valuation
High valuation Valuation score Low valuation

ATTRACTIVE
Internet
India DECEMBER 19, 2017
UPDATE
BSE-30: 33,602
Hungry for more. FY2017 performance of food delivery platforms reveals that the
segment remains a fast-growing one – Swiggy saw the steepest growth with revenues
increasing by more than 5X yoy. We note that several food-tech models may succeed in
India led by increase in discretionary spends on restaurants (both dining out and food
ordering) and adequate capital availability.
Food delivery companies post strong revenue growth in FY2017

FY2017 saw the emergence and growth of several food-tech models – Swiggy, a food delivery
company with its own delivery fleet saw the steepest growth with revenues increasing by more
than 5X yoy; Freshmenu, a food kitchen with some delivery operations posted a 124% revenue
increase followed by Foodpanda, a food delivery company at 63%. Zomato’s India business
posted revenue growth of 91%, though this includes contribution from advertising business
also. We believe the strong growth for the segment was led by an increasing number of partner
restaurants, free delivery to customers as well as discounts.
Delivery companies are looking to expand fleets to gain scale

Swiggy is now the largest food delivery company in India with its own delivery fleet to fulfill
orders, unlike its competitor Zomato, which has until now relied on restaurants or third-party
fleets to deliver orders, but is now veering towards Swiggy’s model. In a single year Swiggy has
scaled up its order run-rate by ~3X (March 2017 over March 2016) and has managed to sustain
a healthy growth momentum in FY2018 also, primarily by getting an increasing number of
restaurants to deliver, and having its own fleet that provided better control over operations and
delivery experience.
Scale and higher commission rates can boost unit economics

Based on an estimated 22 mn orders delivered in FY2017 and average order value (AOV) of
₹300, we calculate Swiggy’s take rate at 20%. We believe there is potential for delivery
companies such as Swiggy and Zomato to increase the take rate further, as they become larger
and account for an increasing proportion of the restaurant partner’s revenues. We note that
commission rates for global peers such as GrubHub in the US and Delivery Hero are in the
15-17% range, though they also have the benefit of higher order values. We note Swiggy’s
commissions are already enough to recoup its delivery costs; further scale-up can reduce
operating costs and lead to improved unit economics.
Food delivery market is expanding, though competitive intensity may also increase
Of an estimated ~10 mn online food delivery orders placed in a month, Swiggy and Zomato
account for ~70% share, with other delivery apps, food kitchens (such as Freshmenu) and
restaurants accounting for the remainder. We believe competitive intensity in the space may
increase as strong growth in food orders spurs more players to invest in their businesses.
Besides Zomato and Swiggy, we see two other companies that may compete for a share of the
pie: (1) Foodpanda India, which may receive fresh investments from its new owner Delivery
Kawaljeet Saluja
Hero, and (2) UberEats, which has commenced operations in seven cities, and may look to kawaljeet.saluja@kotak.com
expand further. Mumbai: +91-22-4336-0860
Zomato: ramp-up of delivery business may need further investments Garima Mishra
garima.mishra@kotak.com
We believe Zomato’s acquisition of Runnr will help its delivery business to scale further, though Mumbai: +91-22-4336-0862
this may require additional investments by the company in the form of higher logistics costs.
The extent of investments would be contingent on: (1) Runnr’s ability to manage off-peak food
delivery hours better by working for third-party customers, and (2) Zomato’s ability to ramp up
order densities such that delivery cost comes down to below ₹60-70 currently.

kotak.research@kotak.com
Mumbai: +91-22-4336-0000
For Private Circulation Only. FOR IMPORTANT INFORMATION ABOUT KOTAK SECURITIES’ RATING SYSTEM AND OTHER DISCLOSURES, REFER TO THE END OF THIS MATERIAL.
Internet India
Swiggy emerged as the fastest growing food-tech company in FY2017, with its revenues
growing by 560% yoy as it scaled its food delivery business. We estimate Swiggy delivered
~1.8 mn order per month in FY2017 on an average, which had further scaled to ~4 mn
orders a month run-rate in July 2017.
Zomato, a late entrant in the space, is catching up. Per its blog, the company delivered ~3 mn
orders in August 2017.
Exhibit 1: Swiggy posted the fastest revenue growth in FY2017

Revenues of food delivery/food kitchen companies, March fiscal year-ends, 2016-17 (Rs mn)
Yoy
2016 2017 (%)
Zomato (India) 875 1,672 91
Swiggy 201 1,331 561
Freshmenu 317 709 124
Foodpanda 377 614 63
Source: Company, MCA, Kotak Institutional Equities
xx
Exhibit 2: Swiggy’s losses increased in FY2017 on greater investments in the business

Brief financials of Swiggy, March fiscal year-ends, 2016-17 (Rs mn)
Yoy change
2016 2017 (%)
Revenues 201 1,331 561
Employee benefit expense (543) (922) 70
Advertising and promotion expense (254) (526) 107
Delivery cost (441) (1,355) 207
Other expenses (329) (643) 95
EBITDA (1,366) (2,115)
Net profit (1,372) (2,052)
Assumed AOV (Rs) 300 300

Orders delivered in the year (mn) 5 22 373
Monthly order run-rate (000) 380 1,797 373
Source: MCA, Kotak Institutional Equities
Swiggy had disclosed its monthly order trajectory from Jun 2016 – January 2017;
extrapolating this data for remaining months we estimate total orders delivered at ~22 mn
during FY2017. Assuming AOV of ₹300 (in line with those of Zomato’s third-party order
delivery transactions), we arrive at a take rate of ~20%. We note that Swiggy is now broadly
recouping its delivery cost from commissions earned per order; and believe it is a matter of
time when further scale-up of orders can lead to lower variable costs per order and
sustainable unit economics.
Zomato’s disclosed unit economics of its delivery business (orders delivered by restaurant
partner) appear better, though we acknowledge that we have not derived these figures
from Zomato’s reported financials, which include its advertising business as well as
operations in other countries. Further, we note these economics can change as Zomato is
also employing a fleet of its own, which would lead to a different cost structure.

India Internet
Exhibit 3: Swiggy’s commissions are making good its delivery cost

Estimated unit economics of Swiggy’s food delivery business, March fiscal year-end, 2017
Metric Comments
Number of orders delivered in the year (mn) 22 Estimated, based on disclosed order run-rate for June 2016 - January 2017
AOV (Rs) 300 Assumed in-line with Zomato's AOV for orders delivered by third-party logistics partner
Implied take rate (%) 20
Gross revenue per order (Rs) 61 Based on total revenue reported and estimated 22 mn orders delivered in FY2017
Delivery cost incurred per order (Rs) 63
Processing cost per order (Rs) 24 Includes estimated direct employee cost, payment gateway charges, and order cancellation cost
Contribution per order (Rs) (26)
Notes:
(a) We have not included communication and technology cost in the processing cost in the absence of a break-up between fixed and variable cost.
Source: Company, MCA, Kotak Institutional Equities estimates
Zomato’s business model has been different from Swiggy in the past as it relied on
restaurant’s own delivery personnel or third-party delivery companies to deliver food to
customers. However, with the acquisition of Runnr, we believe Zomato will look to deliver
orders on its own. A key challenge for Zomato would be to keep its delivery costs low, at
least at or below the ₹55/order it pays to third-party partners as of now.
Exhibit 4: Zomato’s delivery business indicated better unit economics, but may change going forward
Unit economics of Zomato’s food delivery business in India
Delivered by Delivered by third-party

restaurant partner logistics partner
AOV (Rs) 450 300
Take rate/ commission - (1) (%) 7 10
Delivery fee - (2) (Rs) — 50
Total commission - (1) + (2) (Rs) 32 80
Gross revenue for Zomato (Rs) 32 80
Delivery fee paid to partners (Rs) — 55
Processing cost (Rs) 18 27
Contribution per order (Rs) 13 (2)
Notes:
(a) The above is based on company disclosed data, and is not based on our analysis of reported financials.
Source: Company, Kotak Institutional Equities
Exhibit 5: Global take rates for Delivery Hero are in the 10-17% range
Region-wise take rates of Delivery Hero, December calendar year-ends
1QCY16 1QCY17
Gross take rate (including delivery cost, %)
Europe 15.5 17.2
Americas 10.2 12.3
MENA 8.7 10.2
Asia 12.9 15.4
Net take rate (%)
Europe 10.9 12.3
Americas 9.1 10.5
MENA 8.7 9.9
Asia 9.1 9.4
xx

Internet India
Exhibit 6: Freshmenu reported strong growth and improved gross margins

Brief financials of Freshmenu, March fiscal year-ends, 2016-17 (Rs mn)
Yoy change
2016 2017 (%)
Revenues 317 709 124
Purchases of stock-in-trade (278) (536) 93
Employee benefit expense (213) (331) 55
Advertising and promotion expense (51) (144) 182
Other expenses (129) (159) 23
EBITDA (354) (461)
Net profit (338) (423)

Orders delivered in the year (mn) 1.6 3.5 124
Monthly order run-rate (000) 132 295 124
Gross margin (%) 12 24
Exhibit 7: Sharp cost controls resulted in lower losses for Foodpanda

Brief financials of Foodpanda (India), March fiscal year-ends, 2016-17 (Rs mn)
Yoy change
2016 2017 (%)
Revenues 377 614 63
Employee benefit expense (355) (310) (13)
Advertising and promotion expense (280) (178) (36)
Other expenses (1,125) (553) (51)
EBITDA (1,384) (427)
Net profit (1,426) (448)

Orders delivered in the year (mn) 1 2 63
Monthly order run-rate (000) 105 171 63
Exhibit 8: Zomato and Swiggy have raised bulk of the funds in the food-tech sector
Cumulative funds raised by food-tech companies
Funds raised
Company (US$ mn) Business model
Zomato (India) 207 Restaurant classifieds, food delivery. Present in 24 countries
Swiggy 156 Food delivery
Freshmenu 22 Food kitchen + food delivery
Chai Point 12 Delivery of tea and snacks
Eazydiner 8 Online restaurant booking
Growfit 5 Delivery of healthy food and food ingredients
Scootsy 4 Delivery of food, gifts, clothes, other essentials
Holachef 3 Food kitchen + food delivery
Monkeybox 1 Food delivery for kids
Petoo 1 Delivery of Indian food
Source: Venture Intelligence, Kotak Institutional Equities

India Internet
Food delivery has increased at a massive pace globally, with GrubHub posting a 50%+
delivery GMV growth over 2012-16 in a relatively mature market like the US.
Exhibit 9: GrubHub’s online food delivery GMV has increased by 50%+ CAGR over 2012-16
Key operating metrics of GrubHub, December calendar year-ends, 2012-16
2012-16 CAGR
2012 2013 2014 2015 2016 (%)
Active diners (mn) 1 3 5 7 8 70
Average daily orders (000) 62 108 183 227 275 45
Orders delivered in the year (mn) 23 39 67 83 100 45
Average number of orders placed per active diner (#) 23 12 13 12 12
Gross food sales (US$ mn) 569 1,015 1,787 2,354 2,998 52
Average order value (US$) 25 26 27 28 30 4
Revenues (US$ mn) 82 137 254 362 493 56
Implied take rate (%) 14 14 14 15 16
China has reached a different size altogether – at 240 mn annual active diners, covering 17-
18% of the overall population. Rapid urbanization and proliferation of eateries has
contributed to a major adoption of food delivery trend. Meituan Dianping, the Tencent
backed company, is the largest delivery portal in China, fulfilling ~18 mn orders a day.
Exhibit 10: China delivery market is much larger, aided by a massive user base
Key operating metrics of Meituan Dianping
Number of orders fulfilled per day by Meituan (mn) 18

Number of annual active users (mn) 240
Average orders placed by a user in a year (#) 27
Source: Bloomberg, Kotak Institutional Equities
These global examples indicate that food delivery market in India can grow at high rates for
the next few years, though companies will need additional capital to scale up.
Exhibit 11: Growth in GMV of online food delivery companies could meaningfully outpace the growth in turnover of restaurants
Estimated food delivery market size, December calendar year-ends, 2017-21
2017-21 CAGR
2017 2018 2019 2020 2021 (%)
Total size of food-service market (US$ bn) 121 127 133 140 145 5
Proportion of home delivery/takeaway (%) 20 20 20 20 20
Size of home delivery/takeaway market (US$ bn) 24 25 27 28 29 5
Orders per month (mn) 10 15 23 34 51 50

AOV (Rs) 350 350 350 350 350 —
Annual online food delivery GMV (Rs bn) 42 63 95 142 213 50
As proportion of home delivery/takeaway market (%) 2.7 3.8 5.4 7.8 11.2
Assumed commission (%) 15 16 17 18 19
Implied revenue of food delivery companies (Rs mn) 6,300 10,080 16,065 25,515 40,399 59
Source: Euromonitor, Kotak Institutional Equities estimates
Compared with global peers, Indian food delivery companies face twin pressures of low
AOVs and relatively high delivery costs. We believe that: (1) an increase in commission rates
over time, and (2) lower delivery costs on higher order densities can eventually lead to
favorable economics, even if AOVs remain stagnant.

Internet India
Exhibit 12: Indian AOVs are significantly lower than those in the US
Comparison of key operating metrics of GrubHub and Swiggy, December calendar year-ends
2016
Grubhub
Number of orders delivered (mn) 100
AOV (US$) 30
Operations and support cost per order (US$) 1.7
Swiggy
Number of orders delivered (mn) 22
AOV (US$) 5
Operations and support cost per order (US$) 1.3
Notes:
(a) For Swiggy, the data is based on FY2017 (March fiscal year-ends).
Source: Company, MCA, Kotak Institutional Equities estimates
Ecommerce funding propped up by large deals

PE/VC funding raised by e-commerce companies has picked up March 2017 onwards, led by
investors backing selective larger companies with relatively larger sized investments.
Prominent among these are: (1) U$1 bn of funds raised by Flipkart in March 2017 and a
further US$2.5 bn raised in August 2017 , (2) US$1.4 bn of funds raised by Paytm in May
2017, and (3) relatively large sized rounds raised by Ola and Swiggy.
Exhibit 13: Overall funding has picked up in FY2018 led by large funding rounds in select few
companies
3-month moving average of internet and e-commerce funding deals (US$ mn)
3-month moving average of internet and e-commerce funding deals (US$ mn)
2016 average funding
2015 average funding
1,400
1,200
1,000
800
600
400
200
0
Sep-13
Sep-14
Sep-15
Sep-16
Sep-17
Jul-14
Jul-17
Jul-13
Jul-15
Jul-16
Mar-15
Mar-16
Mar-13
Mar-14
Mar-17
Nov-13
Nov-16
Nov-17
Nov-14
Nov-15
May-14
May-15
May-13
May-16
May-17
Jan-13
Jan-16
Jan-17
Jan-14
Jan-15
Source: Venture Intelligence, Kotak Institutional Equities
Internet traffic data: trends in website usage and app rankings
 Data retrieved from Alexa shows that Amazon India continues to be a leading desktop e-
tail website.
 We acknowledge that website ranks are only based on desktop metrics, which may not
reveal the correct traffic picture given >50% of traffic on most websites is from mobile
devices (through the mobile website/app).
 App ranking data from App Annie shows that there is no e-tailer in the top-10 ranked
apps currently. RJio’s offerings have boosted consumption of messenger and video
content apps, several of which are top-10 ranked apps in India.

India Internet
 We note that getting a comprehensive traffic-based rank of websites remains a challenge

due to growing difficulties in monitoring mobile website traffic. Broadly, Alexa captures
only desktop data by the sampling method. Website rankings and other engagement
metrics such as bounce rate, daily page views, etc. are also based on desktop traffic only.
App Annie is a mobile-app analytics provider, and its app rankings are based on Google
Play rankings. Google Play rankings are based on downloads and other attributes such as
app quality (users who keep the app after installing it), frequency of interaction with the
app, number and quality of ratings, number of backlinks, number of uninstalls, etc.
Exhibit 14: Amazon the leading e-tail website, Naukri the dominant recruitment classifieds website
Category-wise key website metrics (desktop-only)
E-tailers Amazon India Flipkart Paytm Ebay India Snapdeal

Website rank in India 6 9 34 50 65
Bounce rate (%) 24.4 44.5 29.3 42.3 36.6
Daily page-views per visitor 9.1 3.7 3.1 4.4 3.7
Daily time on site (minutes) 9.2 5.4 5.1 4.6 4.5
Local search-Classifieds Olx Just Dial Quikr Zomato Sulekha

Bounce rate (%) 18.4 56.7 41.8 37.0 65.1
Recruitment Naukri Shine.com Indeed.co.in Monster India TimesJobs.com

Bounce rate (%) 25.4 45.4 45.4 40.9 44.2
Real estate Classifieds 99acres.com MagicBricks.com Housing.com Commonfloor.com Proptiger.com

Website rank in India 298 385 1,006 1,375 3,153
Bounce rate (%) 38.4 40.8 58.5 47.9 62.4
Top-5 websites Google.co.in Youtube.com Google.com Facebook.com Yahoo.com

Bounce rate (%) 28.9 56.4 36.5 50.0 45.7
Source: Alexa (Retrieved on Nov 29, 2017), Kotak Institutional Equities
xx

Internet India
Exhibit 15: Messaging, content and shopping apps continue to lead app rankings
Indian app rankings based on Google Playstore data
Rank Application (Google Playstore)

1 WhatsApp Messenger
2 Hike
3 UC Browser
4 Facebook Messenger
5 SHAREit
6 Truecaller
7 Hotstar
8 Facebook Lite
9 Facebook
10 MX Player
11 MyJio
12 Jio TV
13 Ludo King
14 Files Go by Google
15 Tez
16 Instagram
17 Xender
18 Sachin Saga
19 Paytm
20 Jio Music
21 Amazon India
22 UC browser Mini
23 Flipkart
24 Vmate
25 IMO Free Video Calls
26 PhonePe
27 Subway Surfers
28 PicsArt Studio
29 AppLock
30 mCent Browser
31 Club Factory-Fair Price
32 Gaana
33 Wynk
34 VivaVideo
35 Ola
36 APUS Browser
37 NewsDog
38 Paytm Mall
39 Voot TV
40 BeautyPlus
41 Facebook Messenger Lite
42 UC News
43 Candy Crush Saga
44 Airtel TV
45 Olx
46 My Airtel
47 MoChat
48 Google Duo
49 BIGO Live
50 BIGO Like
Source: Alexa (Retrieved on 15th Dec 2017), Kotak Institutional Equities

India Internet
CEO speak
 Flipkart CEO Kalyan Krishnamurthy said, “Profitability is not the highest priority today. We
will again go into a very clear consumer market building mode and expanding the
market. We want to bring as many people as possible into the e-commerce fold, as many
categories on a regular basis and we will invest towards that. We are very comfortable on
the burn that we have today. Burn is not a metric that anybody worries about any more.
And with the fund raise, burn is almost irrelevant.” (Livemint)
 Zomato Founder and CEO Deepinder Goyal in a blog post said, ”Zomato is now a
profitable company. Yes, throughout the 24 countries where we operate, and across all
our businesses, we are starting to make money,” The company's core advertising
business in India, Southeast Asia and the Middle East, its three key regions, is generating
enough cash to cover for the investments the firm is making into the rest of the regions
and new businesses, he added. (Moneycontrol)

Kotak Institutional Equities: Valuation summary of KIE Universe stocks
Target O/S ADVT
17
Price (Rs) price Upside Mkt cap. shares EPS (Rs) EPS growth (%) P/E (X) EV/EBITDA (X) P/B (X) RoE (%) Dividend yield (%) 3mo
Company Rating 18-Dec-17 (Rs) (%) (Rs mn) (US$ mn) (mn) 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E (US$ mn)
Automobiles
Amara Raja Batteries REDUCE 774 740 (4.3) 132,141 2,057 171 28 34 39 0.4 22.1 14.3 27.5 22.5 19.7 14.6 12.4 10.9 4.4 3.8 3.3 17.2 18.2 17.9 0.5 0.7 0.8 9.3
Apollo Tyres BUY 255 320 25.4 145,930 2,272 541 13 20 25 (40.5) 53.0 25.6 19.9 13.0 10.3 11.1 8.0 6.4 1.5 1.4 1.3 8.4 11.5 13.0 1.1 1.0 1.0 12.0
Ashok Leyland ADD 114 120 5.0 334,568 5,209 2,926 4.0 5.7 7.8 (21.3) 42.3 35.4 28.4 19.9 14.7 15.9 11.4 8.6 4.9 4.2 3.6 18.1 22.6 26.2 1.1 1.5 2.0 23.0
Bajaj Auto SELL 3,227 2,800 (13.2) 933,715 14,538 289 144 162 178 9.1 12.3 9.9 22.4 19.9 18.1 16.3 14.1 12.5 4.9 4.3 3.8 23.0 23.0 22.4 1.8 2.0 2.2 14.5
Balkrishna Industries ADD 2,476 1,950 (21.2) 239,341 3,727 97 87 106 123 15.3 21.8 16.5 28.5 23.4 20.1 15.8 13.1 11.1 5.6 4.6 3.8 21.5 21.6 20.9 0.4 0.4 0.4 9.8
Bharat Forge SELL 706 550 (22.1) 328,869 5,121 466 18 23 26 21.9 26.7 15.4 39.4 31.1 27.0 20.9 17.3 15.1 7.0 6.0 5.2 18.9 20.7 20.6 0.6 0.8 0.9 15.6
CEAT ADD 1,797 1,950 8.5 72,687 1,132 40 74 119 137 (19.3) 60.5 15.2 24.3 15.1 13.1 12.3 9.1 7.8 2.7 2.4 2.0 11.8 16.7 16.7 0.5 0.8 0.8 13.0
Eicher Motors SELL 29,909 22,000 (26.4) 814,634 12,684 27 778 900 1,078 27.0 15.7 19.7 38.4 33.2 27.7 27.3 22.9 19.0 14.5 10.8 8.2 44.5 37.3 33.7 0.1 0.1 0.1 17.3
Exide Industries SELL 208 200 (3.7) 176,460 2,748 850 8 10 11 3.6 14.1 9.9 24.6 21.5 19.6 14.5 12.5 11.1 3.3 3.0 2.7 14.0 14.7 14.7 1.4 1.4 1.4 7.1
Hero Motocorp SELL 3,535 3,000 (15.1) 706,034 10,993 200 173 188 204 2.4 8.5 8.8 20.4 18.8 17.3 13.2 11.9 10.8 6.1 5.4 4.8 32.0 30.7 29.6 2.4 2.7 2.9 20.5
Mahindra CIE Automotive ADD 243 290 19.4 91,905 1,431 378 10 12 15 106.7 28.5 23.3 25.3 19.7 16.0 12.2 9.9 8.2 2.5 2.2 2.0 10.5 12.1 13.1 — — — 0.8
Mahindra & Mahindra BUY 1,523 1,710 12.3 946,598 14,739 569 77 85 93 16.3 10.7 10.3 19.9 18.0 16.3 13.3 11.9 10.6 2.9 2.6 2.3 15.5 15.3 15.0 1.0 1.1 1.2 28.3
Maruti Suzuki ADD 9,308 9,100 (2.2) 2,811,776 43,780 302 281 352 411 15.6 25.4 16.6 33.1 26.4 22.7 20.1 15.7 13.0 6.7 5.7 4.8 21.7 23.2 23.0 0.8 0.9 1.1 59.4
Motherson Sumi Systems SELL 379 265 (30.1) 798,069 12,426 2,105 10 12 15 27.3 26.2 21.7 38.6 30.6 25.2 15.2 12.3 10.1 8.4 7.1 6.0 23.2 25.1 25.9 0.7 1.0 1.2 15.3
MRF ADD 69,185 74,000 7.0 293,422 4,569 4 2,912 4,041 4,566 (16.9) 38.8 13.0 23.8 17.1 15.2 11.5 8.5 7.3 3.0 2.5 2.2 13.4 16.0 15.5 0.1 0.1 0.1 10.5
Schaeffler India BUY 5,225 5,500 5.3 86,825 1,352 17 141 172 209 20.8 21.6 21.6 37.0 30.4 25.0 21.8 18.1 14.6 5.3 4.7 4.1 15.2 16.3 17.4 0.4 0.7 0.8 0.5
SKF REDUCE 1,693 1,540 (9.0) 89,276 1,390 51 57 66 78 23.9 15.0 17.9 29.5 25.7 21.8 19.8 17.1 14.3 4.9 4.3 3.8 16.4 16.9 17.6 1.0 1.2 1.4 0.6
Suprajit Engineering SELL 315 225 (28.6) 44,060 686 140 9 11 13 1.5 21.3 18.7 35.4 29.2 24.6 20.0 16.9 14.4 7.1 6.0 5.0 22.0 22.3 22.0 0.4 0.5 0.6 0.3
Tata Motors BUY 406 535 31.8 1,378,097 20,034 3,396 28 50 57 0.7 77.9 15.6 14.5 8.2 7.1 5.1 3.8 3.4 1.9 1.6 1.3 14.6 21.1 19.9 — — — 64.2
Timken SELL 877 680 (22.5) 59,660 929 68 19 24 30 31.8 27.5 22.8 46.6 36.5 29.7 26.4 20.7 17.0 8.2 7.1 6.2 19.0 20.9 22.3 0.2 0.8 1.0 0.4
TVS Motor SELL 763 400 (47.6) 362,325 5,641 475 15 19 23 38.3 29.7 17.5 51.3 39.5 33.6 29.7 23.5 20.1 13.6 11.1 9.2 28.9 30.9 29.9 0.6 0.8 0.9 11.8
WABCO India SELL 7,289 6,130 (15.9) 138,255 2,153 19 134 176 215 18.7 31.5 22.4 54.6 41.5 33.9 35.6 26.9 21.7 9.2 7.7 6.4 18.3 20.2 20.6 0.1 0.2 0.2 1.1
Automobiles Neutral 10,984,646 169,610 7.5 34.0 15.7 25.8 19.3 16.7 12.4 9.7 8.4 4.4 3.8 3.2 17.2 19.5 19.2 0.8 0.9 1.1 335.4
Banks
Axis Bank REDUCE 549 550 0.2 1,315,955 20,490 2,568 16 34 42 2.2 115.9 22.5 34.9 16.2 13.2 — — — 2.4 2.1 1.8 6.5 12.1 13.2 0.4 0.9 1.1 84.8
Bank of Baroda ADD 169 195 15.1 390,325 6,077 2,310 10 23 26 63.3 139.9 12.8 17.3 7.2 6.4 — — — 1.5 1.3 1.1 6.0 13.4 13.6 1.2 2.8 3.1 44.3
Bank of India ADD 181 210 16.0 214,462 3,339 1,186 5 25 33 136.7 352.5 35.6 33.4 7.4 5.4 — — — 1.8 1.2 0.9 2.4 10.2 12.7 0.6 2.7 3.7 13.7
Canara Bank REDUCE 365 370 1.3 218,160 3,397 597 16 57 62 (13.7) 253.6 7.4 22.5 6.4 5.9 — — — 2.1 1.4 1.0 2.7 9.1 9.0 — 0.8 0.9 21.2
City Union Bank REDUCE 177 170 (4.2) 117,733 1,833 661 8 10 12 (0.1) 24.5 16.0 21.2 17.1 14.7 — — — 3.2 2.8 2.4 14.6 16.1 16.4 0.8 1.0 1.2 2.0
DCB Bank ADD 195 210 7.7 60,000 934 308 7 10 12 5.5 33.4 25.6 26.4 19.8 15.8 — — — 2.4 2.2 2.0 10.1 11.2 12.6 — — — 4.5
India Daily Summary - December 19, 2017

Equitas Holdings BUY 140 170 21.8 47,428 738 338 0.9 4.3 8.5 (81.9) 400.8 99.8 163.9 32.7 16.4 — — — 2.2 2.1 1.8 1.3 6.2 11.3 — — — 4.6
Federal Bank BUY 108 140 29.4 212,551 3,309 1,832 6.1 7.9 8.7 27.2 28.6 10.8 17.6 13.7 12.4 — — — 1.7 1.6 1.4 10.6 11.2 11.4 1.1 1.4 1.6 18.9
HDFC Bank REDUCE 1,879 1,660 (11.7) 4,862,843 75,716 2,563 68 82 96 20.2 19.7 17.6 27.5 23.0 19.6 — — — 4.8 4.1 3.5 18.2 18.8 19.1 0.7 0.8 1.0 47.4
ICICI Bank BUY 309 385 24.6 1,983,608 30,885 6,408 10 17 25 (32.8) 69.8 42.8 30.1 17.7 12.4 — — — 2.3 2.0 1.7 6.5 10.2 13.3 0.7 1.1 1.6 85.9
IDFC Bank REDUCE 52 52 (0.5) 177,771 2,768 3,393 3.5 4.1 5.0 16.6 17.4 21.7 14.9 12.7 10.4 — — — 1.1 1.1 1.0 7.9 8.7 9.8 1.3 1.6 1.9 7.2
IndusInd Bank REDUCE 1,679 1,750 4.3 1,006,033 15,664 704 59 74 88 23.2 25.1 19.4 28.4 22.7 19.0 — — — 4.1 3.6 3.1 17.0 16.5 17.1 — 0.6 0.7 38.0
J&K Bank BUY 76 100 31.6 42,321 659 521 7 15 16 122.8 114.8 3.3 10.6 5.0 4.8 — — — 0.9 0.7 0.6 6.4 12.8 12.0 2.0 4.2 4.4 1.1
Karur Vysya Bank ADD 117 135 15.7 84,333 1,313 728 5 8 15 (50.3) 62.8 84.4 23.6 14.5 7.9 — — — 1.7 1.6 1.4 6.4 9.2 15.5 1.1 1.7 3.2 3.9
Punjab National Bank ADD 179 220 — 380,374 5,923 2,426 10 21 23 63.1 109.3 9.2 17.6 8.4 7.7 — — — 1.9 1.4 1.1 5.9 10.8 10.8 1.2 2.6 2.8 58.6
RBL Bank SELL 507 410 (19.1) 211,239 3,289 408 15 19 25 27.4 23.0 32.9 33.5 27.2 20.5 — — — 3.3 3.0 2.7 11.4 11.1 13.4 0.5 0.6 0.7 10.2
State Bank of India BUY 319 375 17.6 2,752,762 42,861 8,632 13 29 45 (2.3) 128.3 55.1 24.8 10.9 7.0 — — — 2.3 1.8 1.4 5.2 10.3 14.3 0.9 1.0 1.0 118.4
Ujjivan Financial Services REDUCE 371 400 7.9 44,708 696 119 1 18 23 (93.8) 1,592.3 29.0 345.1 20.4 15.8 — — — 2.6 2.3 2.0 0.7 11.7 13.4 0.0 0.5 0.7 11.2
Union Bank ADD 155 180 16.4 112,342 1,749 726 (40) 26 31 (591.4) 165.0 21.1 (3.9) 6.0 4.9 — — — 2.6 1.5 0.8 (14.3) 9.5 10.5 — 2.5 3.0 13.1
YES Bank SELL 311 285 (8.4) 714,900 11,131 2,282 15 17 20 0.1 18.9 14.9 21.3 17.9 15.6 — — — 3.0 2.7 2.4 14.3 15.1 15.3 0.8 0.9 1.1 60.4
KOTAK INSTITUTIONAL EQUITIES RESEARCH
Banks Attractive 14,949,849 232,773 9.5 84.1 30.3 27.4 14.9 11.4 1.9 1.7 1.5 6.8 11.3 13.2 0.7 1.0 1.3 649.4
Source: Company, Bloomberg, Kotak Institutional Equities estimates


Target O/S ADVT
NBFCs
Bajaj Finance REDUCE 1,757 1,700 (3.2) 1,012,786 15,769 573 48 62 78 41.5 30.9 25.0 37.0 28.3 22.6 — — — 6.1 5.1 4.3 20.9 19.8 20.7 1.5 1.9 2.4 30.6
Bajaj Finserv ADD 5,211 5,600 7.5 829,172 12,910 159 184 222 274 20.3 20.5 23.2 28.3 23.5 19.0 — — — 4.0 3.4 2.9 16.1 15.8 16.7 0.3 0.3 0.3 13.2
Bharat Financial Inclusion NA 1,008 — — 140,005 2,180 138 32 52 64 53.4 60.3 23.3 31.3 19.5 15.8 — — — 4.8 3.8 3.0 16.7 21.7 21.1 — — — 19.7
Cholamandalam ADD 1,275 1,350 5.8 199,355 3,104 156 60 71 84 29.7 18.9 18.9 21.4 18.0 15.1 — — — 4.2 3.5 3.0 19.7 19.7 19.8 0.5 0.7 0.8 6.0
HDFC ADD 1,720 1,890 9.9 2,746,848 42,769 1,589 79 62 74 59.2 (20.8) 18.1 21.8 27.5 23.3 — — — 5.3 4.6 4.0 26.9 18.0 18.4 1.7 1.3 1.5 77.7
ICICI Lombard SELL 800 550 (31.2) 363,091 5,653 451 19 24 28 41.3 22.3 17.8 41.0 33.6 28.5 — — — 8.3 7.1 6.0 21.8 22.7 22.8 0.6 0.7 0.9 —
ICICI Prudential Life ADD 381 435 14.2 546,698 8,512 1,435 12 12 12 5.9 (2.6) 2.2 30.7 31.5 30.8 — — — 7.7 7.0 6.4 26.3 23.2 21.7 1.6 1.6 1.6 8.4
IIFL Holdings REDUCE 608 560 (7.9) 193,745 3,017 318 28 32 39 30.5 13.5 21.1 21.6 19.0 15.7 — — — 3.8 3.3 2.9 24.2 24.2 25.2 1.0 1.1 1.4 2.1
L&T Finance Holdings REDUCE 171 175 2.5 311,473 4,850 1,895 7 9 10 30.3 29.5 11.9 23.8 18.4 16.5 — — — 3.6 3.2 2.7 16.0 18.3 17.9 1.1 1.2 1.2 22.7
LIC Housing Finance ADD 559 650 16.3 282,132 4,393 505 45 55 67 5.9 22.5 21.7 12.5 10.2 8.4 — — — 2.0 1.7 1.4 18.8 19.6 20.2 1.2 1.4 1.7 18.7
Mahindra & Mahindra Financial NR 461 — — 284,512 4,430 565 16 19 23 127.4 19.6 19.1 28.6 23.9 20.1 — — — 4.0 3.7 3.4 13.5 14.8 16.1 1.2 1.4 1.7 13.0
Max Financial Services BUY 556 685 23.1 149,329 2,325 267 6 6 6 4.0 7.0 0.5 92.8 86.7 86.3 — — — — — — 8.6 8.7 8.4 0.4 0.5 0.5 9.3
Muthoot Finance ADD 440 500 13.7 175,749 2,736 400 36 37 42 23.2 0.4 16.1 12.1 12.0 10.4 — — — 2.3 2.0 1.7 20.5 17.8 18.0 1.7 1.7 1.9 5.1
PFC REDUCE 119 145 21.8 314,302 4,894 2,640 21 21 26 165.4 (3.8) 26.7 5.6 5.8 4.6 — — — 1.2 1.0 0.8 14.7 13.0 15.0 5.4 5.2 6.6 13.8
PNB Housing Finance SELL 1,331 1,250 (6.1) 221,693 3,452 168 48 60 73 53.5 24.4 21.7 27.5 22.1 18.1 — — — 3.6 3.3 2.9 13.8 15.5 16.9 0.8 1.0 1.2 3.7
Rural Electrification Corp. REDUCE 151 170 12.4 298,608 4,649 1,975 25 22 24 (20.7) (13.8) 13.4 6.0 7.0 6.2 — — — 1.1 1.0 0.9 14.1 11.0 11.5 3.5 3.1 3.5 16.9
Shriram City Union Finance REDUCE 2,088 2,200 5.4 137,718 2,144 66 126 144 171 49.1 14.9 18.4 16.6 14.5 12.2 — — — 2.6 2.2 1.9 15.4 15.5 16.0 0.7 0.8 1.0 0.6
Shriram Transport REDUCE 1,417 1,225 (13.5) 321,447 5,005 227 66 92 107 18.8 39.9 16.0 21.5 15.4 13.3 — — — 2.7 2.4 2.1 12.5 15.6 15.8 0.7 0.9 1.1 18.9
NBFCs Neutral 8,528,662 132,793 35.3 2.6 19.3 19.4 18.9 15.8 3.4 3.0 2.6 17.6 15.8 16.6 1.3 1.2 1.4 649.4
Cement
ACC SELL 1,697 1,540 (9.2) 318,647 4,961 188 48 72 104 38.5 51.6 44.3 35.7 23.5 16.3 19.3 13.3 9.2 3.5 3.1 2.7 10.0 14.0 17.9 1.0 1.0 1.0 12.2
Ambuja Cements REDUCE 264 260 (1.5) 524,210 8,162 1,986 7 11 14 22.6 56.6 29.0 37.2 23.7 18.4 12.5 8.5 6.4 2.6 2.4 2.2 7.1 10.5 12.5 1.1 1.1 1.1 9.3
Dalmia Bharat ADD 3,209 3,100 (3.4) 285,496 4,445 89 86 144 178 122.2 67.1 23.3 37.2 22.3 18.0 13.9 9.8 8.1 4.5 3.8 3.1 13.6 18.5 18.9 0.1 0.1 0.1 5.2
Grasim Industries ADD 1,130 1,300 15.0 742,886 11,567 657 59 62 84 (13.1) 5.2 35.9 19.2 18.2 13.4 9.0 7.3 6.6 1.2 1.2 1.1 8.5 6.6 8.4 0.5 0.5 0.5 17.8
India Cements SELL 165 170 3.1 50,799 791 308 5 10 14 (12.9) 102.4 40.4 NM 16.5 11.7 9.6 7.1 5.7 1.0 0.9 0.9 2.9 5.8 7.6 0.7 0.7 0.7 11.4
J K Cement REDUCE 1,075 1,095 1.9 75,154 1,170 70 61 90 113 75.3 48.4 25.2 17.7 12.0 9.5 10.4 8.2 6.8 3.6 2.8 2.2 21.9 26.2 25.9 0.7 0.7 0.7 0.8
JK Lakshmi Cement ADD 433 500 15.6 50,916 793 118 16 37 50 130.7 131.2 35.2 27.0 11.7 8.6 10.4 6.7 5.1 3.3 2.6 2.0 12.7 24.7 26.2 0.5 0.5 0.5 1.3
Orient Cement ADD 159 190 19.5 32,574 507 205 7 13 17 572.1 73.5 33.4 21.5 12.4 9.3 9.9 7.3 5.8 3.0 2.5 2.0 14.6 21.9 24.1 1.1 1.3 1.4 1.1
Shree Cement SELL 17,700 14,600 (17.5) 616,619 9,601 35 544 644 844 41.5 18.4 31.1 32.6 27.5 21.0 18.5 14.4 11.2 6.5 5.3 4.3 22.0 21.2 22.5 0.1 0.1 0.1 7.8
UltraTech Cement SELL 4,310 3,100 (28.1) 1,183,291 18,424 275 102 132 170 5.7 29.9 28.9 42.4 32.6 25.3 19.6 15.8 13.1 4.5 4.0 3.5 11.1 12.9 14.7 0.2 0.2 0.2 15.4
Cement Cautious 3,880,591 60,422 28.6 30.9 32.1 30.9 23.6 17.9 13.2 10.1 8.3 2.7 2.5 2.2 8.9 10.5 12.4 0.5 0.5 0.5 82.4

India Daily Summary - Decembe

18
Target O/S ADVT
19
Consumer products
Asian Paints REDUCE 1,137 1,100 (3.3) 1,090,752 16,983 959 22 25 30 7.9 16.5 17.3 52.6 45.2 38.5 32.7 27.8 23.7 13.0 11.8 10.7 25.9 27.5 29.2 1.0 1.2 1.4 12.8
Bajaj Corp. BUY 480 480 (0.1) 70,859 1,103 148 16 19 21 2.6 16.2 12.1 29.7 25.5 22.7 25.0 20.8 17.7 13.4 12.3 11.2 46.7 50.3 51.7 2.4 2.7 3.0 0.9
Britannia Industries ADD 4,700 5,000 6.4 564,218 8,785 120 87 107 130 18.7 22.7 21.0 53.7 43.8 36.2 35.8 29.1 24.0 16.8 13.6 11.2 34.7 34.4 33.9 0.6 0.7 1.0 14.6
Coffee Day Enterprises BUY 280 300 7.1 57,680 898 206 6 10 15 158.2 75.9 44.3 48.4 27.5 19.1 13.5 11.7 10.1 2.5 2.3 2.0 5.2 8.6 11.2 — — — 1.2
Colgate-Palmolive (India) ADD 1,079 1,200 11.2 293,432 4,569 272 24 29 35 18.0 20.8 19.0 44.3 36.7 30.8 25.8 21.6 18.4 19.3 16.3 13.8 47.4 48.3 48.5 1.2 1.5 1.8 5.2
Dabur India REDUCE 348 315 (9.4) 612,393 9,535 1,762 8 9 10 6.9 13.5 12.8 45.4 40.0 35.4 38.4 33.3 29.0 11.1 9.8 8.7 26.0 26.0 26.0 0.9 1.1 1.3 6.3
GlaxoSmithKline Consumer ADD 6,372 6,100 (4.3) 267,997 4,173 42 159 182 201 1.9 14.2 10.5 40.1 35.1 31.7 27.0 22.6 19.7 7.9 7.2 6.7 20.6 21.6 22.0 1.3 1.4 1.7 1.6
Godrej Consumer Products SELL 988 850 (14.0) 673,290 10,483 681 21 24 28 10.1 14.8 14.7 46.9 40.9 35.6 33.4 28.7 24.9 11.1 9.6 8.2 25.3 25.1 24.8 0.8 0.8 0.9 8.3
Hindustan Unilever REDUCE 1,333 1,150 (13.7) 2,885,250 44,924 2,160 23 27 31 19.6 16.4 13.0 56.8 48.8 43.2 39.3 33.9 30.1 41.4 38.7 36.4 75.5 82.1 86.9 1.4 1.6 1.8 24.0
ITC ADD 263 310 17.8 3,207,937 49,948 12,235 9 10 11 9.5 9.8 11.7 29.1 26.5 23.7 19.3 17.5 15.5 6.7 6.4 6.1 22.0 23.6 25.8 2.2 2.5 2.9 47.3
Jubilant Foodworks SELL 1,751 1,400 (20.0) 115,540 1,799 66 23 34 44 121.0 44.6 32.4 75.4 52.2 39.4 29.0 22.7 18.1 12.6 11.0 9.4 17.8 22.5 25.8 0.3 0.6 0.9 23.3
Jyothy Laboratories ADD 382 360 (5.8) 69,445 1,081 182 10 12 13 45.9 22.6 12.1 40.1 32.7 29.2 27.8 22.5 19.8 6.1 5.8 5.5 15.6 18.3 19.5 1.6 1.8 2.1 1.1
Manpasand Beverages REDUCE 421 400 (4.9) 48,149 750 114 8 11 16 28.6 34.5 47.1 51.5 38.3 26.0 24.8 17.0 12.5 3.9 3.6 3.2 7.8 9.7 12.9 0.1 0.2 0.4 1.4
Marico REDUCE 308 300 (2.7) 397,945 6,196 1,291 7 8 9 11.5 17.3 11.8 47.4 40.4 36.1 33.1 28.3 25.0 15.4 13.9 12.6 34.2 36.1 36.5 1.2 1.5 1.7 4.6
Nestle India REDUCE 7,925 6,850 (13.6) 764,095 11,897 96 129 156 178 22.9 20.6 14.1 61.4 50.9 44.6 35.4 29.5 25.9 23.4 21.5 20.0 39.6 44.0 46.5 1.1 1.3 1.6 5.9
Page Industries SELL 24,521 16,500 (32.7) 273,501 4,258 11 295 358 440 25.7 21.5 22.7 83.1 68.4 55.7 52.8 43.1 35.4 33.0 26.6 21.6 44.0 43.1 42.8 0.5 0.6 0.8 5.6
PC Jeweller ADD 443 400 (9.7) 174,680 2,720 394 15 18 21 24.1 22.5 16.9 30.4 24.8 21.2 15.4 12.4 10.3 4.1 3.6 3.1 15.1 15.3 15.7 0.3 0.5 0.7 19.3
Pidilite Industries REDUCE 886 850 (4.1) 454,555 7,078 513 18 22 26 8.6 19.0 18.2 48.6 40.9 34.6 32.3 27.1 22.7 11.3 9.6 8.2 24.9 25.4 25.7 0.7 0.8 0.9 6.3
S H Kelkar and Company ADD 253 280 10.9 36,524 569 145 7 9 11 2.7 20.4 18.8 33.9 28.2 23.7 20.3 16.7 14.0 4.1 3.7 3.3 12.7 13.8 14.8 0.7 0.8 1.0 0.5
Tata Global Beverages ADD 291 285 (2.0) 183,564 2,858 631 8 10 12 36.6 21.5 17.9 35.0 28.8 24.4 19.1 16.0 13.6 2.8 2.6 2.5 8.2 9.4 10.4 0.9 1.1 1.2 25.4
Titan Company SELL 840 550 (34.5) 745,829 11,613 888 12 15 18 39.7 22.2 19.7 67.4 55.1 46.1 45.1 36.5 30.1 15.0 12.8 10.9 24.0 25.0 25.5 0.4 0.5 0.7 26.1
United Breweries SELL 1,039 800 (23.0) 274,743 4,278 264 15 18 21 73.6 21.7 16.3 68.9 56.6 48.6 30.8 27.6 24.5 10.3 9.0 7.9 16.0 17.0 17.3 0.2 0.3 0.4 7.8
United Spirits REDUCE 3,406 2,800 (17.8) 494,965 7,707 145 44 65 85 62.7 46.1 31.5 76.6 52.4 39.9 42.6 32.1 25.7 17.5 11.7 8.4 27.1 26.7 24.5 — — — 25.0
Varun Beverages BUY 516 600 16.3 94,215 1,467 182 12 15 20 34.2 33.9 31.6 44.7 33.4 25.4 13.5 11.4 9.8 4.5 3.9 3.4 10.5 12.6 14.5 — — — 0.3
Consumer products Cautious 13,851,555 215,672 15.8 16.2 15.1 44.6 38.4 33.3 28.8 24.8 21.5 11.1 10.1 9.1 25.0 26.3 27.4 1.2 1.4 1.7 275.0
Energy
BPCL SELL 526 475 (9.8) 1,141,895 17,780 1,967 36 41 43 (11.7) 12.3 6.8 14.6 13.0 12.2 10.6 9.2 8.6 3.1 2.7 2.4 22.4 22.1 20.8 2.4 2.7 2.9 30.2
Castrol India ADD 422 450 6.5 208,878 3,252 495 13 15 17 (0.3) 12.1 11.3 31.6 28.2 25.3 20.3 18.1 16.2 34.0 32.6 30.3 109.2 118.1 123.9 2.6 2.8 3.1 8.5
GAIL (India) BUY 496 525 5.8 838,886 13,062 1,691 28 32 36 27.1 12.9 11.8 17.5 15.5 13.8 11.0 9.9 9.0 2.0 1.9 1.7 12.1 12.7 13.1 1.9 2.1 2.4 33.0
GSPL SELL 204 200 (1.9) 114,961 1,790 564 12 12 13 31.3 7.2 8.7 17.6 16.4 15.1 8.9 8.1 7.3 2.3 2.1 2.0 13.7 13.4 13.4 1.1 1.5 2.6 3.4

HPCL REDUCE 438 430 (1.8) 667,587 10,394 1,524 36 35 37 (16.6) (1.8) 4.0 12.2 12.4 11.9 9.0 9.3 9.2 2.9 2.6 2.3 25.2 21.9 20.4 3.3 3.2 3.4 30.8
Indraprastha Gas SELL 326 250 (23.4) 228,340 3,555 700 11 12 14 22.1 14.5 12.7 30.8 26.9 23.9 19.4 17.0 15.0 6.7 5.9 5.2 23.4 23.3 23.2 0.7 1.0 1.3 12.6
IOCL REDUCE 410 415 1.3 1,988,979 30,969 4,739 35 39 40 (35.0) 10.0 3.5 11.5 10.5 10.1 6.8 6.2 5.9 1.8 1.6 1.5 16.0 16.0 15.1 3.4 3.3 3.5 28.0
Mahanagar Gas SELL 1,115 870 (22.0) 110,182 1,716 99 49 50 51 24.2 0.7 2.1 22.5 22.4 21.9 13.2 13.0 12.5 5.3 4.8 4.4 24.9 22.6 21.1 1.9 2.2 2.3 4.7
ONGC ADD 183 210 14.7 2,349,124 36,576 12,833 18 21 23 4.3 18.1 9.1 10.4 8.8 8.1 4.8 4.1 3.7 1.0 0.9 0.9 9.8 10.9 11.2 3.3 3.8 4.4 22.7
Oil India SELL 352 310 (11.9) 250,444 3,899 757 27 30 31 (10.8) 10.9 4.9 13.0 11.8 11.2 7.3 6.5 6.2 0.9 0.9 0.9 7.1 7.8 7.9 3.5 3.8 4.0 3.5
Petronet LNG ADD 254 290 14.0 381,675 5,943 1,500 14 16 17 19.5 15.8 10.3 18.7 16.2 14.7 12.1 10.3 9.0 4.0 3.5 3.0 23.1 23.0 22.1 1.4 1.8 2.5 21.0
Reliance Industries REDUCE 921 835 (9.3) 5,450,478 84,865 5,918 54 60 66 7.8 9.5 10.4 16.9 15.4 14.0 13.2 9.7 8.5 1.9 1.7 1.5 10.8 10.7 10.8 0.7 0.9 1.0 101.9
Energy Attractive 13,731,427 213,802 (6.3) 11.5 8.2 14.4 12.9 11.9 8.9 7.4 6.7 1.7 1.6 1.5 12.2 12.5 12.4 2.0 2.2 2.4 300.3



Target O/S ADVT
Industrials
ABB SELL 1,387 1,230 (11.3) 293,822 4,575 212 22 33 44 22.3 52.3 32.6 64.2 42.1 31.8 35.5 25.6 19.8 8.2 7.3 6.2 13.4 18.3 21.1 0.5 0.6 0.6 1.8
BHEL SELL 89 70 (21.6) 327,672 5,102 3,671 1.8 4.0 5.3 35.1 118.7 33.4 48.9 22.4 16.8 33.7 8.8 5.7 1.0 1.0 0.9 2.1 4.4 5.7 0.5 1.1 1.5 15.3
Carborundum Universal SELL 380 310 (18.5) 71,835 1,118 189 12 15 19 28.3 27.8 22.9 31.9 25.0 20.3 17.2 12.9 11.0 4.7 4.2 3.7 15.4 17.7 19.3 0.9 1.2 1.5 1.0
CG Power and Industrial REDUCE 86 77 (10.4) 53,869 839 627 1.8 4.2 6.0 (38.5) 132.6 43.6 47.5 20.4 14.2 13.1 8.8 6.9 1.5 1.5 1.4 3.0 7.4 10.0 0.4 1.0 1.4 4.0
Crompton Greaves Consumer REDUCE 261 210 (19.5) 163,491 2,546 627 5.2 6.2 7.5 10.8 19.8 21.4 50.3 42.0 34.6 30.7 26.0 21.7 17.8 12.4 9.3 44.5 34.8 30.6 0.4 0.4 0.4 4.6
Cummins India SELL 851 860 1.1 235,842 3,672 277 27 32 37 4.6 17.2 13.4 31.0 26.4 23.3 26.7 22.4 19.5 5.8 5.4 5.0 19.6 21.3 22.3 1.8 2.0 2.3 4.3
Havells India SELL 551 440 (20.2) 344,613 5,366 625 11 14 16 14.0 25.5 18.3 50.9 40.5 34.3 32.9 25.4 21.4 9.5 8.6 7.8 19.6 22.2 23.8 0.8 1.1 1.5 13.2
Kalpataru Power Transmission BUY 450 510 13.4 68,988 1,074 153 18 25 34 24.2 43.0 36.0 25.5 17.8 13.1 9.1 7.9 6.5 2.6 2.3 2.0 10.7 13.9 16.5 0.4 0.4 0.4 1.3
KEC International ADD 345 345 0.0 88,683 1,381 257 16 21 25 34.0 30.3 20.8 21.7 16.7 13.8 11.3 9.5 8.1 4.6 3.7 3.0 23.2 24.7 24.3 0.6 0.8 1.0 3.0
L&T ADD 1,218 1,370 12.5 1,706,316 26,568 1,399 56 63 75 32.4 11.9 20.2 21.8 19.4 16.2 19.2 16.8 15.1 3.3 3.0 2.7 16.0 16.3 17.8 1.7 1.8 2.2 45.5
Siemens SELL 1,189 970 (18.4) 423,480 6,594 356 25 32 39 27.5 27.2 22.5 47.2 37.1 30.3 27.5 21.3 17.2 5.2 4.8 4.5 11.3 13.5 15.4 0.9 1.1 1.3 4.5
Thermax REDUCE 1,179 930 (21.1) 140,485 2,187 113 27 35 42 26.8 27.8 22.2 43.5 34.0 27.8 29.5 24.0 20.1 4.8 4.4 3.9 11.5 13.4 14.8 0.5 0.6 0.7 1.3
Voltas SELL 629 490 (22.2) 208,275 3,243 331 18 19 21 20.1 1.6 13.0 34.1 33.6 29.7 29.5 24.7 21.0 5.5 4.9 4.4 17.2 15.4 15.6 0.6 0.7 0.8 11.3
Industrials Neutral 4,127,372 64,264 26.2 23.1 22.2 30.4 24.7 20.2 21.3 16.9 14.5 3.4 3.2 2.9 11.3 12.8 14.3 1.1 1.3 1.6 111.0
Infrastructure
Adani Port and SEZ ADD 404 435 7.6 837,286 13,037 2,071 18 23 25 (4.1) 28.6 7.2 22.3 17.4 16.2 15.0 12.1 11.2 4.1 3.4 2.9 19.7 21.4 19.6 0.6 1.0 1.2 27.4
Ashoka Buildcon BUY 241 285 18.3 45,103 702 188 13 15 17 28.8 18.5 12.8 19.1 16.1 14.3 14.5 12.0 10.4 2.2 1.9 1.7 12.1 12.6 12.6 0.9 1.5 1.1 1.7
Container Corporation SELL 1,314 1,140 (13.2) 320,233 4,986 244 37 42 49 12.7 14.0 18.7 35.9 31.5 26.6 20.6 17.0 13.6 3.4 3.1 2.9 9.7 10.3 11.4 1.1 1.3 1.5 7.4
Gateway Distriparks BUY 239 270 13.1 25,948 404 109 7 11 16 (1.3) 63.5 42.4 35.8 21.9 15.4 27.9 22.5 17.9 2.4 2.3 2.1 7.0 10.7 14.1 0.8 1.4 2.0 0.6
Gujarat Pipavav Port REDUCE 135 150 10.8 65,434 1,019 483 4.5 6.3 7.5 (13.3) 39.8 20.4 30.2 21.6 17.9 15.3 11.8 9.9 3.2 3.0 2.9 10.6 14.3 16.6 2.6 3.5 4.2 1.9
IRB Infrastructure BUY 222 265 19.3 78,057 1,215 351 27 32 31 31.8 21.0 (5.3) 8.3 6.8 7.2 8.0 6.9 7.0 1.3 1.1 1.0 16.6 17.2 14.3 1.0 1.5 1.8 10.1
Sadbhav Engineering ADD 360 400 11.0 61,843 963 172 15 20 18 40.9 31.1 (10.1) 23.3 17.8 19.8 17.6 13.6 11.5 3.2 2.8 2.5 14.9 16.8 13.2 — — — 1.9
Infrastructure Attractive 1,433,903 22,326 4.3 25.9 7.3 22.5 17.9 16.6 14.3 11.7 10.7 3.3 2.9 2.6 14.7 16.2 15.4 0.8 1.2 1.4 50.8
Internet
Info Edge ADD 1,280 1,140 (10.9) 155,541 2,422 121 22 26 31 31.3 18.3 19.0 57.7 48.8 41.0 42.8 34.9 28.9 7.1 6.5 5.8 12.9 13.9 15.0 0.4 0.5 0.6 1.5
Just Dial REDUCE 495 410 (17.2) 34,455 536 67 19 18 20 8.4 (2.3) 8.0 26.2 26.8 24.8 16.7 15.9 13.9 3.6 3.2 2.9 13.8 12.6 12.2 — 0.4 0.4 30.7
Internet Attractive 189,996 2,958 21.5 11.6 15.9 48.0 43.0 37.1 34.9 29.8 25.1 6.1 5.5 5.0 12.7 12.9 13.4 0.4 0.5 0.6 32.2
Media
DB Corp. REDUCE 344 390 13.4 63,288 985 184 22 27 30 7.8 23.5 11.6 15.6 12.6 11.3 8.6 7.0 6.1 3.7 3.3 3.1 24.5 27.8 28.7 3.8 4.7 5.8 0.5
DishTV ADD 80 88 10.1 85,225 1,327 1,066 0.3 1.3 2.0 (75.3) 421.6 50.2 NM 60.6 40.3 10.1 8.3 7.3 16.5 12.9 9.8 5.3 23.9 27.7 — — — 5.0
Jagran Prakashan REDUCE 165 195 18.3 51,352 800 311 12 15 16 14.3 21.8 10.7 13.6 11.1 10.1 6.7 5.7 5.0 2.5 2.3 2.1 17.9 21.4 22.0 2.4 5.2 5.5 0.6
PVR REDUCE 1,336 1,300 (2.7) 62,443 972 47 31 44 56 47.3 38.1 28.6 42.4 30.7 23.9 16.2 13.2 11.1 5.7 4.9 4.2 14.3 17.2 18.8 0.2 0.3 0.4 4.8
Sun TV Network ADD 951 925 (2.8) 374,873 5,837 394 30 36 42 14.8 21.6 14.8 31.7 26.1 22.7 22.0 17.8 15.2 8.9 7.9 7.0 29.3 32.0 32.6 1.8 2.0 2.3 17.0
Zee Entertainment Enterprises BUY 574 580 1.0 551,637 8,589 960 14 18 21 3.1 24.1 18.6 40.0 32.2 27.2 25.2 21.0 17.5 7.0 6.0 5.3 19.0 20.1 20.7 0.6 0.8 1.0 22.0
Media Attractive 1,188,817 18,510 6.6 26.6 17.2 33.7 26.7 22.8 17.9 14.8 12.7 6.8 6.0 5.3 20.1 22.4 23.1 1.2 1.5 1.7 49.9

India Daily Summary - Decembe

20
Target O/S ADVT
21
Metals & Mining
Coal India REDUCE 268 255 (4.7) 1,661,413 25,869 6,207 17 21 23 12.4 27.3 7.6 16.0 12.5 11.7 10.0 8.6 8.3 5.5 5.1 4.7 35.5 42.2 42.0 4.4 5.6 6.0 21.6
Hindalco Industries BUY 250 300 20.2 560,437 8,726 2,227 21 27 30 149.6 25.2 11.2 11.7 9.3 8.4 6.8 5.7 4.9 1.1 1.0 0.9 9.7 10.9 10.9 0.4 0.4 0.4 34.0
Hindustan Zinc REDUCE 298 290 (2.5) 1,257,244 19,576 4,225 23 26 25 17.8 12.6 (3.4) 12.8 11.4 11.8 8.5 6.9 6.5 3.4 2.8 2.5 28.8 27.0 22.3 2.3 2.6 2.5 7.1
Jindal Steel and Power BUY 176 185 5.1 160,999 2,507 915 (11) 6 14 49.5 152.8 159.3 (16.7) 31.6 12.2 9.2 6.7 5.7 0.6 0.5 0.5 (3.3) 1.7 4.4 — — — 19.6
JSW Steel ADD 254 270 6.3 613,853 9,558 2,417 16 21 24 7.9 34.5 11.5 16.2 12.0 10.8 8.4 7.5 7.1 2.3 2.0 1.7 15.2 17.8 17.0 0.9 0.9 0.9 14.1
National Aluminium Co. ADD 77 88 13.8 149,512 2,328 1,933 6 7 8 74.5 13.5 5.8 12.1 10.7 10.1 5.7 4.8 4.3 1.4 1.3 1.2 11.8 12.6 12.5 3.9 3.9 3.9 10.5
NMDC SELL 133 112 (15.8) 420,956 6,554 3,164 12 10 10 45.6 (18.8) 6.9 11.2 13.8 12.9 7.1 9.0 8.3 1.7 1.7 1.6 16.1 12.4 12.7 4.1 4.1 4.1 6.0
Tata Steel ADD 705 780 10.7 684,416 10,657 971 56 67 77 35.1 20.7 14.0 12.6 10 9.2 7.2 6.7 6.1 2.0 1.7 1.5 15.4 17.5 17.3 1.4 1.4 1.4 47.8
Vedanta BUY 309 375 21.5 1,147,312 17,864 3,717 24 40 44 23.8 65.3 9.7 12.7 7.7 7.0 7.5 5.4 4.8 1.7 1.6 1.4 14.3 21.4 20.9 2.4 3.9 4.3 45.4
Metals & Mining Attractive 6,656,140 103,638 32.4 30.8 8.7 14.1 10.8 9.9 8.0 6.7 6.1 2.1 1.9 1.7 15.2 17.9 17.4 2.6 3.2 3.3 206.0
Pharmaceutical
Apollo Hospitals ADD 1,173 1,100 (6.2) 163,173 2,541 139 14 23 30 (14.6) 72.5 30.1 86.5 50.1 38.5 23.2 19.4 16.5 4.3 4.0 3.8 5.0 8.3 10.1 0.3 0.5 0.6 9.5
Aurobindo Pharma REDUCE 672 760 13.1 393,772 6,131 584 46 50 50 16.9 8.1 1.3 14.6 13.5 13.3 10.0 8.8 8.1 3.3 2.7 2.3 25.3 21.9 16.9 0.4 0.4 0.5 31.0
Biocon SELL 516 250 (51.5) 309,570 4,820 601 6 8 14 (51.9) 35.4 73.2 86.7 64.1 37.0 36.5 28.1 19.3 5.6 5.3 4.8 6.7 8.5 13.6 0.4 0.5 0.9 24.1
Cipla BUY 592 680 14.9 476,246 7,415 805 22 33 40 78.7 48.7 20.2 26.5 17.8 14.8 15.5 10.8 9.0 3.3 2.9 2.5 13.2 17.4 18.2 0.8 1.2 1.4 15.5
Dr Lal Pathlabs REDUCE 892 860 (3.6) 74,366 1,158 83 21 24 29 9.0 14.9 — 42.9 37.3 — 26.0 22.6 — 9.3 7.7 — 23.8 22.6 22.5 0.4 0.4 — 1.4
Dr Reddy's Laboratories SELL 2,395 2,250 (6.1) 397,145 6,184 166 67 119 167 (7.2) 77.0 40.2 35.6 20.1 14.3 17.1 9.9 7.2 3.0 2.6 2.3 8.7 13.9 16.0 0.4 0.8 1.1 29.1
HCG BUY 287 305 6.2 24,617 383 85 2 3 5 (24.3) 64.2 69.7 145.7 88.7 52.3 23.4 18.5 15.5 5.4 5.1 4.6 3.8 5.9 9.3 — — — 0.5
Laurus Labs ADD 533 570 6.9 56,562 881 106 20 28 39 9.3 42.4 40.2 27.1 19.0 13.6 14.2 11.0 8.5 3.7 3.1 2.5 14.5 17.6 20.3 — — — 0.9
Lupin ADD 865 870 0.6 391,036 6,089 450 37 41 54 (34.6) 10.2 32.2 23.3 21.1 16.0 11.9 10.7 8.3 2.6 2.4 2.1 11.7 11.7 13.9 0.6 0.7 0.9 35.8
Sun Pharmaceuticals REDUCE 530 470 (11.3) 1,271,122 19,792 2,406 15 22 27 (48.8) 47.4 23.9 35.8 24.3 19.6 18.6 12.7 10.1 3.3 2.9 2.6 9.4 12.6 13.9 0.4 0.8 1.0 40.5
Torrent Pharmaceuticals REDUCE 1,359 1,270 (6.6) 230,000 3,581 169 53 59 65 (4.7) 12.0 10.9 25.8 23.1 20.8 17.7 13.6 12.5 4.6 4.0 3.5 19.0 17.2 16.6 0.9 1.0 1.1 4.6
Pharmaceuticals Cautious 3,787,607 58,974 (22.2) 34.0 23.3 29.9 22.3 18.1 16.3 12.1 9.9 3.4 3.0 2.6 11.4 13.5 14.6 0.5 0.8 1.0 192.8
Real Estate
Brigade Enterprises BUY 297 340 14.3 40,475 630 136 11 11 12 (17.4) 2.1 6.5 26.7 26.2 24.6 11.6 12.1 11.6 1.7 1.7 1.6 7.5 6.5 6.6 0.8 0.8 0.8 0.8
DLF ADD 232 210 (9.4) 413,544 6,439 1,784 2.1 2.2 2.7 (45.9) 5.6 23.4 110.2 104.4 84.6 21.0 19.2 19.1 1.7 1.7 1.7 1.5 1.6 2.0 0.9 0.9 0.9 31.8
Godrej Properties SELL 698 400 (42.7) 151,037 2,352 216 11.6 16.8 19.2 21.9 43.9 14.9 59.9 41.6 36.2 NM 101.6 72.3 6.7 5.8 5.0 11.8 14.9 14.7 — — — 2.6
Oberoi Realty ADD 470 520 10.7 159,511 2,484 340 13 66 46 13.6 420.5 (30.3) 37.1 7.1 10.2 25.9 9.5 12.4 2.6 1.9 1.6 7.3 31.3 17.4 0.4 0.4 0.4 3.2
Prestige Estates Projects ADD 295 315 7.0 110,438 1,720 375 8 10 11 (17.7) 21.0 — 35.5 29.3 — 16.2 15.3 15.3 2.4 2.2 — 6.8 7.8 7.8 0.5 0.5 1— 2.4
Sobha REDUCE 594 510 (14.1) 57,195 891 96 20 21 24 17.4 9.5 14.1 30.3 27.7 24.3 16.2 15.4 14.3 2.1 2.0 1.9 7.0 7.3 8.0 1.2 1.2 1.2 5.3

Sunteck Realty REDUCE 419 215 (48.7) 59,351 924 126 22 19 21 30.3 (13.0) 8.5 18.8 21.5 19.9 14.6 16.8 15.6 2.6 2.3 2.1 14.6 11.3 11.1 — 0.5 0.5 2.5
Real Estate Neutral 991,551 15,439 (9.0) 100.0 (11.1) 49.8 24.9 28.0 21.4 17.3 18.0 2.2 2.1 2.0 4.5 8.3 7.0 0.6 0.6 0.6 48.7



Target O/S ADVT
Technology
HCL Technologies REDUCE 885 900 1.7 1,262,884 19,663 1,407 64 66 70 7.6 4.5 5.3 13.9 13.3 12.6 10.3 9.2 8.5 3.3 3.0 2.7 24.9 23.4 22.4 0.9 3.7 4.2 23.8
Hexaware Technologies REDUCE 322 300 (6.9) 97,409 1,517 304 17 18 19 21.4 7.5 8.7 19.4 18.0 16.6 13.6 12.0 10.7 5.1 4.5 4.1 27.8 26.5 25.8 2.5 2.5 3.1 6.2
Infosys NR 1,015 — — 2,332,252 36,314 2,175 64 67 73 2.7 4.3 8.1 15.8 15.1 14.0 11.5 10.6 9.6 3.6 3.3 3.0 22.0 22.7 22.6 3.3 3.5 3.8 67.0
L&T Infotech ADD 1,031 1,100 6.7 177,044 2,757 175 63 66 73 12.2 4.8 11.2 16.5 15.7 14.1 12.9 10.9 9.5 4.7 4.0 3.5 31.5 27.7 26.5 1.9 2.3 2.5 1.5
Mindtree ADD 574 600 4.5 96,528 1,503 164 29 34 40 14.9 19.8 16.2 19.9 16.7 14.3 13.4 9.8 8.1 3.6 3.1 2.7 18.1 20.1 20.3 1.4 1.6 1.9 5.4
Mphasis SELL 717 610 (14.9) 150,764 2,347 193 41 44 46 7.2 7.1 4.7 17.4 16.3 15.5 13.1 11.6 10.8 2.6 2.4 2.2 13.8 15.3 14.9 2.8 2.8 2.8 2.0
TCS REDUCE 2,577 2,500 (3.0) 4,933,119 76,810 1,914 136 146 156 1.8 7.2 7.5 19.0 17.7 16.5 13.6 12.3 11.2 6.3 5.8 5.3 31.1 33.9 33.5 3.3 3.5 3.8 39.5
Tech Mahindra ADD 494 545 10.3 430,669 6,706 883 35 39 44 9.5 9.9 13.5 14.1 12.8 11.3 8.5 6.9 5.7 2.3 2.1 1.8 17.7 17.3 17.3 1.9 1.9 1.9 17.3
Wipro REDUCE 295 275 (6.9) 1,437,134 22,377 4,507 18 20 22 3.8 8.5 11.5 16.3 15.0 13.5 10.6 9.3 8.1 2.7 2.3 2.0 16.8 16.7 16.1 0.3 0.5 0.8 9.5
Technology Cautious 10,917,803 169,993 1.2 5.4 8.3 17.1 16.2 15.0 12.0 10.7 9.7 4.2 3.8 3.4 24.6 23.3 22.9 2.5 3.0 3.3 172.1
Telecom
Bharti Airtel ADD 526 570 8.3 2,103,632 32,754 3,997 4 9 22 (49.0) 123.6 130.9 124.5 55.7 24.1 10.4 9.1 7.0 3.1 3.0 2.8 2.5 5.5 12.2 0.2 0.2 0.6 125.7
Bharti Infratel REDUCE 358 385 7.6 661,697 10,303 1,850 15 18 19 1.9 15.9 8.7 23.6 20.4 18.7 9.9 9.0 8.4 4.2 4.1 4.1 17.9 20.5 21.8 3.3 3.8 4.1 41.6
IDEA BUY 95 113 19.0 342,521 5,333 3,605 (12) (13) (10) (867.9) (3.4) 22.7 (7.8) (7.5) (9.7) 14.3 13.2 10.3 1.7 2.2 2.8 (19.6) (25.3) (25.2) — — — 24.0
Tata Communications ADD 684 710 3.9 194,826 3,033 285 4 8 11 (59.4) 84.6 45.8 160.1 86.8 59.5 11.8 10.3 9.2 16.3 13.8 11.2 8.7 17.2 20.8 1.0 1.0 1.1 8.5
Telecom Attractive 3,302,677 51,424 (96.6) 1,231.2 236.6 1,633.9 122.7 36.5 10.9 9.7 7.8 3.2 3.2 3.2 0.2 2.6 8.6 0.8 0.9 1.2 200.0
Utilities
Adani Power SELL 36 26 (26.9) 137,114 2,135 3,857 (0.0) 1.8 4.3 99.3 5,075.4 136.8 NM 19.7 8.3 7.1 6.4 5.4 4.6 3.7 2.6 (0.5) 20.9 36.6 — — — 6.2
CESC ADD 1,007 1,070 6.2 133,439 2,078 133 81 98 107 55.9 21.1 8.6 12.4 10.2 9.4 7.6 6.9 6.4 0.9 0.8 0.8 7.3 8.3 8.4 1.2 1.2 1.3 7.8
JSW Energy REDUCE 80 76 (4.9) 131,040 2,040 1,640 4.7 7.2 8.4 23.9 54.2 15.9 17.0 11.0 9.5 7.2 5.7 5.1 1.2 1.1 1.0 7.3 10.7 11.4 2.5 2.5 2.5 15.8
NHPC ADD 28 30 6.4 289,313 4,505 10,259 2.8 3.0 3.3 (4.3) 7.6 7.0 10.0 9.3 8.7 8.6 7.4 6.7 1.0 0.9 0.9 9.8 10.2 10.5 5.5 5.8 6.2 3.2
NTPC BUY 178 190 6.9 1,465,631 22,820 8,245 14 17 18 10.2 26.4 6.3 13.1 10.4 9.7 10.8 8.4 7.2 1.4 1.3 1.2 11.2 13.1 12.8 2.3 2.9 3.1 22.8
Power Grid BUY 200 250 24.8 1,048,411 16,324 5,232 16 19 22 14.6 15.2 14.0 12.2 10.6 9.3 8.1 7.2 6.6 1.9 1.6 1.4 16.2 16.5 16.6 1.7 1.9 2.2 21.9
Reliance Power SELL 36 40 10.0 101,966 1,588 2,805 3.8 5.8 6.6 (9.7) 53.8 13.7 9.7 6.3 5.5 8.0 6.9 6.3 0.5 0.4 0.4 4.8 7.0 7.4 — — — 2.6
Tata Power REDUCE 91 78 (14.3) 246,134 3,832 2,800 4.9 6.2 7.3 (22.6) 26.6 17.4 18.5 14.6 12.4 9.7 9.4 9.1 2.0 1.8 1.6 11.3 13.1 13.8 1.3 1.3 1.3 11.3
Utilities Attractive 3,553,048 55,322 17.9 25.1 12.7 13.2 10.5 9.3 8.9 7.6 6.7 1.4 1.3 1.2 10.6 12.2 12.5 2.1 2.5 2.7 91.7
Source: Company, Bloomberg, Kotak Institutional Equities estimates India Daily Summary - Decembe

22
Target O/S ADVT
23
Others
Astral Poly Technik SELL 832 500 (39.9) 99,586 1,551 120 14 18 22 18.7 26.0 22.1 57.7 45.8 37.5 31.8 25.1 20.3 9.8 8.2 6.8 18.6 19.5 19.8 0.1 0.1 0.1 0.8
Avenue Supermarts SELL 1,135 685 (39.7) 708,492 11,031 624 13 16 20 49.6 26.9 23.3 89.3 70.4 57.0 52.5 41.0 33.3 15.3 12.6 10.3 18.7 19.6 19.8 — — — —
Bayer Cropscience ADD 4,150 4,450 7.2 146,719 2,284 34 104 117 147 26.2 12.5 25.6 39.9 35.5 28.3 30.9 24.1 18.9 7.8 6.7 5.7 18.4 20.4 21.8 0.5 0.6 0.7 1.4
Cera Sanitaryware REDUCE 3,700 2,940 (20.5) 48,122 749 13 89 106 129 16.5 19.7 21.2 41.6 34.8 28.7 24.4 20.8 17.0 7.7 6.4 5.3 20.3 20.1 20.1 0.3 0.3 0.2 0.6
Dhanuka Agritech REDUCE 704 690 (1.9) 35,199 548 49 25 29 34 5.4 14.5 17.6 28.0 24.4 20.8 19.0 15.7 13.2 5.7 4.9 4.2 21.9 21.6 21.8 0.9 1.0 1.2 0.4
Godrej Industries RS 595 — — 200,114 3,116 336 15 16 20 6.8 8.9 24.2 40.8 37.5 30.2 36.5 30.9 33.6 5.5 4.9 4.3 14.4 13.9 15.1 0.3 0.3 0.3 5.1
HSIL REDUCE 500 390 (22.0) 36,170 563 72 13 19 24 (10.2) 48.9 25.9 39.2 26.3 20.9 15.3 11.6 9.6 2.4 2.2 2.1 6.3 8.8 10.3 0.8 0.8 0.8 1.3
InterGlobe Aviation NR 1,142 — — 438,866 6,833 383 71 94 107 54.6 32.1 14.3 16.0 12.1 10.6 9.7 7.2 6.2 5.4 4.2 3.4 46.1 39.1 35.3 1.9 2.5 2.8 11.8
Kaveri Seed SELL 538 535 (0.5) 37,138 578 66 32 39 43 19.4 20.9 10.3 16.7 13.8 12.5 14.6 11.7 9.9 4.6 3.7 3.0 23.8 29.4 26.4 1.1 1.5 1.9 4.9
PI Industries BUY 974 880 (9.7) 134,336 2,092 138 31 36 44 (8.0) 18.2 21.0 31.8 26.9 22.3 22.9 18.6 15.4 6.8 5.6 4.6 23.4 22.7 22.6 0.4 0.4 0.5 4.1
Rallis India ADD 238 260 9.4 46,216 720 194 10 13 16 9.1 32.7 24.2 24.9 18.8 15.1 15.6 11.9 9.7 3.8 3.3 2.9 15.9 18.9 20.6 1.4 1.5 1.7 2.4
SIS ADD 1,212 950 (21.6) 88,699 1,381 73 23 32 37 79.9 35.1 15.9 51.7 38.3 33.0 27.7 22.8 19.5 8.3 6.9 5.7 21.3 20.0 19.0 — — — 0.9
SRF BUY 1,887 1,920 1.7 108,375 1,687 57 75 102 119 (16.4) 35.7 17.2 25.2 18.5 15.8 13.8 9.9 8.6 3.1 2.7 2.4 12.8 15.5 15.9 0.6 0.7 0.8 7.5
Tata Chemicals ADD 720 765 6.2 183,488 2,857 255 41 45 50 (14.6) 8.7 11.8 17.5 16.1 14.4 6.8 6.1 5.2 1.8 1.7 1.6 11.5 10.7 11.3 1.8 2.1 2.4 13.1
TeamLease Services SELL 2,004 1,550 (22.7) 34,265 534 17 43 56 71 10.6 30.7 25.9 46.7 35.7 28.4 47.4 33.8 26.4 7.5 6.2 5.1 17.6 19.1 19.8 — — — 0.9
UPL ADD 710 860 21.1 360,959 5,620 507 41 50 58 16.8 19.7 17.2 17.1 14.3 12.2 10.7 9.0 7.7 4.0 3.3 2.7 25.7 25.3 24.4 1.2 1.4 1.7 20.0
Vardhman Textiles ADD 1,315 1,400 6.4 75,486 1,175 55 101 139 141 (9.8) 37.8 1.6 13.0 9.5 9.3 10.8 7.4 7.0 1.5 1.4 1.2 12.4 15.2 13.8 1.5 1.5 2.3 1.1
Whirlpool SELL 1,549 1,150 (25.8) 196,524 3,060 127 29 36 44 15.9 23.2 23.5 53.3 43.3 35.0 31.5 25.9 20.9 11.0 9.2 7.7 22.6 23.1 23.8 0.3 0.4 0.6 1.3
Others 2,894,462 45,068 18.1 24.1 16.5 28.3 22.8 19.6 17.3 13.8 11.9 5.3 4.5 3.8 18.8 19.8 19.6 0.7 0.9 1.1 75.6
KIE universe 105,054,398 1,634,301 7.2 26.4 16.9 22.5 17.8 15.2 12.1 10.1 8.9 2.9 2.6 2.3 12.7 14.5 15.3 1.3 1.6 1.8
KIE universe (ex-energy) 91,322,970 1,420,499 11.4 30.2 18.8 24.6 18.9 15.9 13.1 10.9 9.6 3.2 2.8 2.5 12.9 15.1 16.0 1.3 1.5 1.7
Notes:
(a) We have used adjusted book values for banking companies.
(b) 2017 means calendar year 2016, similarly for 2018 and 2019 for these particular companies.
(c) Exchange rate (Rs/US$)= 64.23


Disclosures
"Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is
responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies
and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or
views expressed in this report: Sanjeev Prasad, Kawaljeet Saluja."
Kotak Institutional Equities Research coverage universe

Distribution of ratings/investment banking relationships
Percentage of companies covered by Kotak Institutional
70%
Equities, within the specified category.
60%
Percentage of companies within each category for which Kotak
Institutional Equities and or its affiliates has provided
50%
investment banking services within the previous 12 months.
40% * The above categories are defined as follows: Buy = We

35.0%
expect this stock to deliver more than 15% returns over the
next 12 months; Add = We expect this stock to deliver 5-15%
30% 26.4%
returns over the next 12 months; Reduce = We expect this stock
22.8%
to deliver -5-+5% returns over the next 12 months; Sell = We
20% 15.7% expect this stock to deliver less than -5% returns over the next
12 months. Our target prices are also on a 12-month horizon
basis. These ratings are used illustratively to comply with
10%
3.6% applicable regulations. As of 30/09/2017 Kotak Institutional
2.5% 1.0% 2.5%
Equities Investment Research had investment ratings on 197
0% equity securities.
BUY ADD REDUCE SELL
Source: Kotak Institutional Equities As of September 30, 2017
Ratings and other definitions/identifiers

Definitions of ratings
BUY. We expect this stock to deliver more than 15% returns over the next 12 months.
ADD. We expect this stock to deliver 5-15% returns over the next 12 months.
REDUCE. We expect this stock to deliver -5-+5% returns over the next 12 months.
SELL. We expect this stock to deliver <-5% returns over the next 12 months.
Our target prices are also on a 12-month horizon basis.
Other definitions
Coverage view. The coverage view represents each analyst’s overall fundamental outlook on the Sector. The coverage view will consist of one of the following
designations: Attractive, Neutral, Cautious.
Other ratings/identifiers
NR = Not Rated. The investment rating and target price, if any, have been suspended temporarily. Such suspension is in compliance with applicable regulation(s)
and/or Kotak Securities policies in circumstances when Kotak Securities or its affiliates is acting in an advisory capacity in a merger or strategic transaction
involving this company and in certain other circumstances.
CS = Coverage Suspended. Kotak Securities has suspended coverage of this company.
NC = Not Covered. Kotak Securities does not cover this company.
RS = Rating Suspended. Kotak Securities Research has suspended the investment rating and price target, if any, for this stock, because there is not a sufficient
fundamental basis for determining an investment rating or target. The previous investment rating and price target, if any, are no longer in effect for this stock
and should not be relied upon.
NA = Not Available or Not Applicable. The information is not available for display or is not applicable.
NM = Not Meaningful. The information is not meaningful and is therefore excluded.

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services rendered in connection with distribution of primary market issues and financial products like mutual funds and fixed deposits, depository services and Portfolio Management.
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). Kotak Securities Limited
is also registered with Insurance Regulatory and Development Authority as Corporate Agent for Kotak Mahindra Old Mutual Life Insurance Limited and is also a Mutual Fund Advisor
registered with Association of Mutual Funds in India (AMFI). Kotak Securities Limited is registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014.
We hereby declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered in last five years. However SEBI,
Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on KSL for certain operational
deviations. We have not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has our certificate of registration been cancelled by SEBI at any
point of time.
We offer our research services to primarily institutional investors and their employees, directors, fund managers, advisors who are registered with us
Details of Associates are available on our website i.e. www.kotak.com
Research Analyst has served as an officer, director or employee of subject company(ies): No
We or our associates may have received compensation from the subject company(ies) in the past 12 months.
We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past 12 months. YES
We or our associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company(ies) in the past 12 months. We or our
associates may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company(ies) in the
past 12 months. We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report.
Our associates may have financial interest in the subject company(ies).
Research Analyst or his/her relative's financial interest in the subject company(ies): No
Kotak Securities Limited has financial interest in the subject company(ies) at the end of the month immediately preceding the date of publication of Research Report: YES
Our associates may have actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of publication of
Research Report.
Research Analyst or his/her relatives has actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of
publication of Research Report: No
Kotak Securities Limited has actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of publication of
Research Report: No
Subject company(ies) may have been client during twelve months preceding the date of distribution of the research report.
A graph of daily closing prices of securities is available at www.nseindia.com and http://economictimes.indiatimes.com/markets/stocks/stock-quotes. (Choose a company from the list on
the browser and select the"three years" icon in the price chart).
Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051, Telephone No.: +91-22 43360
000, Fax No.: +91-22- 6713 2430. Website: www.kotak.com. SEBI Registration No: NSE INB/INF/INE 230808130, BSE INB 010808153/INF 011133230, MSEI INE 260808130/INB
260808135/INF 260808135, Research Analyst INH000000586, AMFI ARN 0164 and PMS INP000000258. NSDL: IN-DP-NSDL-23-97. CDSL: IN-DP-CDSL-158-2001.
Compliance Officer Details: Mr. Manoj Agarwal. Call: +91-22-4285 6825, or Email: ks.compliance@kotak.com.
In case you require any clarification or have any concern, kindly write to us at below email ids:
Level 1: For Trading related queries, contact our customer service at 'service.securities@kotak.com' and for demat account related queries contact us at ks.demat@kotak.com or call us
on: Online Customers - 30305757 (by using your city STD code as a prefix) or Toll free numbers 18002099191 / 1800222299, Offline Customers - 18002099292
Level 2: If you do not receive a satisfactory response at Level 1 within 3 working days, you may write to us at ks.escalation@kotak.com or call us on +91-22-4285 8445 and if you feel
you are still unheard, write to our customer service HOD at ks.servicehead@kotak.com or call us on +91-22-4285 8208.
Level 3: If you still have not received a satisfactory response at Level 2 within 3 working days, you may contact our Compliance Officer (Name: Manoj Agarwal) at
ks.compliance@kotak.com or call on +91-22-4285 6825.
Level 4: If you have not received a satisfactory response at Level 3 within 7 working days, you may also approach CEO (Mr. Kamlesh Rao) at ceo.ks@kotak.com or call on
+91-22-6652 9160.
First Cut notes published on this site are for information purposes only. They represent early notations and responses by analysts to recent events. Data in the notes may not have been
verified by us and investors should not act upon any data or views in these notes. Most First Cut notes, but not necessarily all, will be followed by final research reports on the subject.
There could be variance between the First cut note and the final research note on any subject, in which case the contents of the final research note would prevail. We accept no liability
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INDIA DAILY

December 19, 2017 India 18-Dec 1-day 1-mo 3-mo

Contents Global/Regional indices

Strategy FTSE 7,537 0.6 2.1 3.6

 Portfolio positioning - 'turnaround' stories; see Exhibit 7 for Model Portfolio

Daily Alerts Forex/money market

Change, basis points

Internet: Hungry for more Rs/US$ 64.2 5 (84) (9)

10yr govt bond, % 7.4 3 18 46

MFs 135 686 16,872

TGBL IN Equity 290.9 1.4 11.9 34.5

BHARTI IN Equity 526.3 1.6 6.6 33.3

SHTF IN Equity 1416.8 0.7 8.9 32.5

TTAN IN Equity 840.1 0.9 6.8 30.9

UBBL IN Equity 1039.1 1.7 (5.7) 29.9

RCAPT IN Equity 412.2 0.2 (4.9) (45.3)

RCOM IN Equity 11.8 (0.4) (2.5) (41.3)

RPWR IN Equity 36.4 0.7 (1.6) (17.1)

YES IN Equity 311.2 (1.5) 1.6 (16.6)

HDIL IN Equity 53.2 (0.4) (16.9) (15.7)

Kotak Institutional Equities Research

Portfolio positioning—‘turnaround’ stories; see Exhibit 7 for Model Portfolio

Kotak Institutional Equities Research

Clarification on our 2X2 framework

Source: Election Commission, Kotak Institutional Equities

KOTAK INSTITUTIONAL EQUITIES RESEARCH 3

Source: Kotak Institutional Equities estimates

Source: Kotak Institutional Equities estimates

4 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Source: Factset, Kotak Institutional Equities

2012 2013 2014 2015 2016 2017 2018E 2019E

Source: RBI, CEIC, Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 5

Exhibit 6: Full valuations for the broad market

P/E (X) Avg Mean+1SD Mean-1SD

Source: Kotak Institutional Equities estimates

Exhibit 7: We favor 'turnaround' sectors and stocks trading at reasonable valuations

Price (Rs) KIE weight Price (Rs) KIE weight

Source: Companies, Kotak Institutional Equities estimates

6 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Strong business, high valuation Strong business, low valuation

Mediocre business, high valuation Mediocre business, low valuation

High valuation Valuation score Low valuation

Source: Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 7

Food delivery companies post strong revenue growth in FY2017

Delivery companies are looking to expand fleets to gain scale

Scale and higher commission rates can boost unit economics

Kotak Institutional Equities Research

Exhibit 1: Swiggy posted the fastest revenue growth in FY2017

Source: Company, MCA, Kotak Institutional Equities

Exhibit 2: Swiggy’s losses increased in FY2017 on greater investments in the business

Assumed AOV (Rs) 300 300

Source: MCA, Kotak Institutional Equities

KOTAK INSTITUTIONAL EQUITIES RESEARCH 9

Exhibit 3: Swiggy’s commissions are making good its delivery cost

Source: Company, MCA, Kotak Institutional Equities estimates

Delivered by Delivered by third-party

Source: Company, Kotak Institutional Equities

Source: Company, Kotak Institutional Equities

10 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Exhibit 6: Freshmenu reported strong growth and improved gross margins

Assumed AOV (Rs) 200 200