IEA Report 18th January

IEA Report
18th Jan 2017

LICHSGFIN
"BUY"
18th Jan 2017
LICHSGFIN has been reporting steady and consistent performance since last few quarters. This was the result of strategy of management towards
profitable growth segment. Assets quality remains one of the best in the industry. LICHSGFIN has been able to report the 15% steady growth in its
loan book. On the demand front the housing industry looks optimistic on affordable segment. The implementation of 7th Pay Commission and
recent announcement of interest subvention scheme under affordable segment will boost the demand. Due to fall in G-Sec Bond Yield we expect
the cost of fund for LICHSGFIN to decline further. In the near term we estimate the NIM to improve further. We expect the loan growth to remain
healthy at 15%. Recent aggressive rate cut by banks may further intensify the competition in housing finance space which can be a imminent risk
factor for LICHSGFIN to protect its spread. We estimate the RoE of 19% and recommend BUY with the target price of Rs 637.
.................................................... ( Page : 2-6)
NIITTECH
The company has witnessed an expansion in margins every quarter and is confident of reaching an exit margin of 17.5% by end of current fiscal.
Offshore revenues has started increasing, GIS business is also doing well, BFSI segment seeing good traction in insurance business, Some softness
will be seen in BFS but will be picking up going forward. Also the Company has started maintaining an intake of new businesses of over USD 100
million. There would be some impact of H1BVisa; Management is concerned about it & looking forward how it pans out. The Company continue to
focus on its digital business which grew 31% over same period last year. Considering above aspects & Managements positive outlook we
recommend BUY on the stock with the target price of Rs 480. ............... ( Page : 7-9)
RELIANCE
"HOLD"
17th Jan 2017
In just 83 days of launch, Reliance Jio has achieved subscriber base of 50Mn and has targeted to acquire 100Mn subscribers by March 2017, while
maintaining the ARPU of Rs. 300 per month. As per the management, Jio will be able to retain 30% of its subscribers post expiry of free trial offer on
1 April 2017. Jio will recognize revenue from April 2017. In 3QFY17, Reliance commissioned the first phase of new Paraxylene(PX) project at
Jamnagar .With the commissioning of this plant, PX capacity will more than double from 2.0 to 4.2 MTPA. Considering the future growth prospects,
we recommend Hold rating in this stock with a target price of Rs. 1140............................................ ( Page : 10-13)
BAJAJCORP
"BUY"
16th Jan 2017
Major positive for this quarter remained international business which contributed more than 5% in this quarter. Exports business in this quarter
grew by 72% although from a very low base.The Company is focusing on exports and its plan to enter in Russia, Indonesia and Egypt in on the way.
Companys modern trade volume grew by 27% YoY and contributed 5.2% of the total sales in Q3FY17. We expect modern trade to keep growing in
strong pace. GST may be game changer for organized FMCG players. Implementation of GST will lead to market share gain as well as improvement
in realization if company keeps some of its benefits. BAJAJCORP has a strong balance sheet with approx. no debt and dividend yield of approx. 3%
which makes it very lucrative at this price. Considering these positives and low valuation we still hold positive view on this stock with a previous
target price of Rs 490. ..................................... ( Page : 14-17)
INFY
"BUY"
16th Jan 2017
In Q3, we saw continued momentum for software and services coming together to drive new value for clients. Having hit the USD 10 billion mark in
annual revenue run rate, it has performed well and is optimistic about the fourth quarter of the current fiscal .There would be some impact of the
H1-B depending on the nature of the policy that is enacted but "it is not something Mgt is overly concerned about." The company presently is
trading at 3.3 times FY17 earnings. With this we remain positive on the stock and recommend 'BUY' with the target of 1210 at P/b of 3.3 times FY17
Book Value. ............................................. ( Page : 18-20)
MCX
"BUY"
16th Jan 2017
Mcx will be key beneficiary of launch of option trading in commodity market. For a longer term perspective launch of option will have a very
positive effect on company's volume. Mcx has strong balance sheet with no debt . As market will mature, more trading participants will be allowed
to hedge and trade in commodity market which will be positive for MCX as it has dominant market share. Earlier we had BUY recommendation on
MCX at the price of Rs 991 for the target price of Rs 1400 on 2nd sept2016 and we booked profit in it on 30 Sept2016(up by 38%). Form our book
profit price, now MCX has corrected much and considering long term prospects of MCX, we are bullish on this stock. We recommend to buy this
stock with a target price of Rs 1470. ............................................. ( Page : 21-24)
Narnolia Securities Ltd
IEA Edition No.-
933
BUY
LIC HOUSING FINANCE LTD.
18-Jan-17
Steady and Consistent Performance
Result Update
CMP
532
Target Price
637
Previous Target Price

Upside
20%
Change from Previous
Market Data
BSE Code
500253
NSE Symbol
LICHSGFIN
624/389
26858
52wk Range H/L

Mkt Capital (Rs Cr)
Av. Volume (,000)
190
8398
Nifty
Stock Performance
1Month
1Year
YTD
Absolute
(2.1)
9.7
0.4
Rel.to Nifty
(6.2)
(1.7)
(2.3)
Share Holding Pattern-%

3QFY17
Promoters
Public
Others
Total
2QFY17 1QFY17
40.3
40.3
40.3
59.7
0.0
100.0
59.7
0.0
100.0
59.7
0.0
100.0
Company Vs NIFTY
130
125
120
115
110
105
100
95
90
85
80
LICHSGFIN
NIFTY
LICHSGFIN posted 3Q FY17 results largely as per our expectation. Net

Interest Income grew by 23% YoY led by healthy loan growth as well as NIM
expansion of 17 bps. Fee income has declined by 59% YoY due to waive off
of processing fee. Operating profit grew by a healthy rate of 19% led by
strong control on C/I ratio to 14.79%. Overall Operating expenses grew by
16% YoY led by higher employee expenses which grew by 43% YoY.
Provisions grew by 31% YoY. PAT grew by 19% YoY to Rs 499.
Loan growth remained healthy and steady at 15% YoY growth backed by
strong growth in non-core book. Assets quality remained intact with marginal
improvement. Spread increased by 26 bps backed by lower cost of fund.
NIM improved by 17 bps to 2.75% against 2.58% a year back. This
improvement was led by 38 bps decline in cost of fund to 8.80%. Yield on the
portfolio declined by 12 Bps to 10.63%. Reported spread increased to 1.83%
against 1.57% a year back.
Margins Improved but intense competition will limit spread improvement.

Incremental cost of fund for the 3Q FY17 was 7.83% whereas for the 9
months it was 8.19%. Management highlighted that the incremental
borrowing in the month of January till date has happened even blow to 7.6%
through NCD route. Incremental Yield on 9 months basis was 10.69%
supported by higher disbursement in project loans. Thus the incremental
spread remained healthy at 2.50%. But due to recent rate cut by banks in
home loan has led to intensive competition in the industry. Forced to this
LICHSGFIN has launched the new products under affordable housing
segment with extremely competitive rate. Going forward in FY18, we expect
the very limited scope of improvement in spread but in near term company
may report expansion in spread due to hangover benefits of low cost fund
raised, re-pricing high cost of Rs 3700 Cr NCDs in 4Q FY17 and recent
higher disbursement of project loans which carry higher yield.
Controlled Opex
On the operating cost, LICHSGFIN saw the improvement in C/I ratio to
14.8% against 15.1% YoY. Overall operating expenses grew by 16% YoY led
by higher employee expense which consists of Rs 7.5 Cr provisions on
arrears of wage revision. Management highlighted that all the provisions
regarding wage revisions has been provided. Going forward management
expect the Cost to Income ratio to be in the range of 15%.
DEEPAK KUMAR
Deepak.kumar@narnolia.com
Please refer to the Disclaimers at the end of this Report
LICHSGFIN
Loan growth remains healthy supported by Non-Core segment.
LICHSGFIN was able to maintain the steady growth of 15% YoY in Loan portfolio as per our expectation. However
core individual loan book grew by 9% YoY only whereas company registered the spike in developer loan segment
which grew by 45% YoY due to higher disbursement of earlier sanctioned loan. LAP grew by 88% YoY. The
composition of non-core portfolio (LAP + Developer) increased to 13.7% against 12.5% on 2Q FY17. Overall
disbursement of LICHSGFIN grew by 15% YoY. Disbursement in individual loan segment tapered to 6% YoY. Project
loan disbursement increased by more than 2 times. The prepayment ratio declined by 20 bps sequentially to 10.7%
but still remains on the high side. LICHSGFIN has been reporting consistent improvement in the prepayment ratio
since last 3 quarters but going forward we are very cautious in this front and will how this ratio moves after the huge
rate cut by the banks.
Stable Assets Quality

Assets quality of LICHSGFIN largely remained stable with marginal improvement in GNPA at 0.56% against 0.58% a
year back. NNPA was 0.27% against 0.32% on 3Q FY16. Sequentially also assets quality saw improvement of 1 bps
in both GNPA and NNPA. GNPA in individual segment remained flat on YoY/QoQ basis to 0.32%. The provisions
made in this quarter was Rs 45 Cr which increased by 31% YoY. PCR including provisions on teaser loans and
standard assets is at 128% of the gross non-performing assets against 124% on 2Q FY17. We expect the assets
quality to stabilize at current level due to the focus of company in doing more individual home loan.
(Rs in Crore)
Quarterly Performance
Financials
Interest Inc.
Interest Exp.
NII
Other Income
Total Income
Ope Exp.
PPP
Provisions
PBT
Tax
Net Profit
3QFY15
2668
2119
549
68
617
88
528
7
522
177
344
4QFY15
2800
2150
650
60
710
125
586
10
575
197
378
1QFY16
2917
2259
659
48
707
84
623
44
579
197
382
2QFY16
3026
2309
717
63
780
106
674
30
644
233
412
3QFY16
3102
2355
747
55
802
121
680
34
646
227
419
4QFY16
3206
2384
821
68
890
158
732
38
694
246
448
1QFY17
3326
2502
825
54
878
138
740
116
623
216
408
2QFY17
3428
2563
866
62
927
136
791
30
761
266
495
3QFY17
3513
2597
915
36
952
141
811
45
766
266
499
YoY %
13%
10%
23%
-34%
19%
16%
19%
31%
19%
17%
19%
QoQ%
2%
1%
6%
-41%
3%
3%
3%
49%
1%
0%
1%
Outlook & Valuation

LICHSGFIN has been reporting steady and consistent performance since last few quarters. This was the result of
strategy of management towards profitable growth segment. Assets quality remains one of the best in the industry.
LICHSGFIN has been able to report the 15% steady growth in its loan book. On the demand front the housing
industry looks optimistic on affordable segment. The implementation of 7th Pay Commission and recent
announcement of interest subvention scheme under affordable segment will boost the demand. Due to fall in G-Sec
Bond Yield we expect the cost of fund for LICHSGFIN to decline further. In the near term we estimate the NIM to
improve further. We expect the loan growth to remain healthy at 15%. Recent aggressive rate cut by banks may
further intensify the competition in housing finance space which can be a imminent risk factor for LICHSGFIN to
protect its spread. We estimate the RoE of 19% and recommend BUY with the target price of Rs 637.

LICHSGFIN
Concall Highlights:
>> Towards the end of December, there was improvement in enquiry and demand.
>> Launched a new products on affordable housing segment with a extremely competitive rate.
>> Strong growth in developer was due to lower base as well as the cases in pipeline which were sanctioned earlier.
There were completion of construction to a certain level after which company disbursed the amount.
>> Sanctions grew by 11% YoY for the 9 month basis. Total sanctions is Rs 25000 Cr during this period.
>> Incremental Cost of fund for the quarter is 7.83% and in the month of January till date incrental borrowing happend at
7.60%.
>> Rs 3700 Cr of NCDs carrying average cost of 9.4% will mature in Q4 FY17.
>> Disbursement in LAP segment is Rs 1600 Cr.
>> Management expects disbursement growth of 15% in individual loan segment in 4Q FY17.
>> Fee income declined due to waive off of processing fees in the month of Nov and Dec. But now the comapny has
increased the processing fees in all category of product.
Effeciency Ratio
C/I Ratio %
Empl. Exp/Oper Exp.%
Commission/Ope. Exp %
Tax Rate%
Provision/PPP (%)
PAT/Net Income %
3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY(+/-) QoQ(+/-)
14.3
17.5
11.8
13.6
15.1
17.7
15.7
14.7
14.8
(0.35)
0.08
41.2
28.6
37.9
34.1
35.6
24.9
49.4
43.4
43.7
8.16
0.32
32.7
39.1
32.6
39.6
34.3
45.7
29.6
32.8
33.4
(0.91)
0.64
34.0
34.3
34.0
36.1
35.2
35.5
34.6
35.0
34.8
(0.37)
(0.17)
1.3
1.8
7.1
4.5
5.1
5.1
15.7
3.8
5.6
55.9
53.2
54.1
52.8
52.2
50.4
46.4
53.4
52.5
0.22
(0.89)
Margins
Yield% (Cal.)
Cost of Fund% (Cal.)
Spread% (Cal)
NIM% (Rep.)
3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY(+/-) QoQ(+/-)
10.70
10.65
10.67
10.78
10.72
10.57
10.53
10.61
10.55
(0.17)
(0.06)
9.49
9.19
9.30
9.27
9.17
8.88
8.94
8.95
8.82
(0.35)
(0.13)
1.21
1.46
1.36
1.52
1.55
1.69
1.60
1.66
1.72
0.17
0.07
2.20
2.47
2.41
2.56
2.58
2.71
2.61
2.68
2.75
0.17
0.07
Yield% (Cal.)
Cost of Fund% (Cal.)
NIM% (Rep.)
C/I Ratio %
12.00
3.00
10.00
2.50
8.00
2.00
6.00
1.50
4.00
1.00
2.00
0.50
20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
-
Provision/PPP (%)
PAT/Net Income %
60.0
50.0
40.0
30.0
20.0
10.0
-
4
LICHSGFIN
3QFY15
Loan Portfolio Breakup

Individual Loan Portfolio
99,362
4QFY15
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
YoY %
QoQ%
100,782
102,382
104,688
106,803
110,716
111,829
114,718
116,753
9%
2%
LAP
4,848
5,322
6,388
7,502
11,015
11,852
12,716
14,125
88%
11%
Project/Developer loan portfolio
2,582
2,731
2,708
2,992
3,091
3,442
3,756
3,662
4,488
45%
23%
101,944
108,361
110,412
114,068
117,396
125,173
127,437
131,096
135,366
15%
3%
Total Loan portfolio
3QFY15
Disbursements Breakup
Individual+LAP
4QFY15
7,184
Project/Developer loan portfolio

Total Disbursement
9,550
1QFY16
2QFY16
5,942
3QFY16
7,944
8,067
354
640
478
368
1,129
219%
207%
8,421
13,216
7,542
9,123
9,684
15%
6%
Loan Growth % YoY
Borrowing Composition Breakup %
5.0
-
Non Convertible Debentures (NCD)
3QFY15
4QFY15
580
495
1QFY16
2QFY16
659
Bank
100.0
80.0
60.0
40.0
20.0
-
3QFY16
683
682
4QFY16
1QFY17
568
757
2QFY17
750
3QFY17
YoY %
QoQ%
759
11%
1%
-3%
-2%
(0.02)
(2.65)
(0.05)
12.13
(0.01)
(1.76)
(0.01)
3.53
317
234
360
369
374
270
356
368
361
0.57
0.33
9.74
0.31
118
0.46
0.24
8.83
0.22
142
0.60
0.36
10.00
0.33
113
0.60
0.33
10.58
0.32
114
0.58
0.32
10.23
0.32
116
0.45
0.20
9.42
0.22
144
0.59
0.35
8.63
0.28
124
0.57
0.32
9.34
0.28
124
0.56
0.32
7.58
0.27
128
GNPA% ( Individual)
Others
120.0
NNPA % ( Overall )
PCR% (Incl.Std Prov&others)
0.70
160
0.60
140
0.50
120
0.40
100
-2%
445
10.0
0.10
QoQ%
6%
8,389
15.0
0.20
YoY %
8,555
305
20.0
0.30
3QFY17
6,247
25.0
GNPA % ( Overall )
8,755
388
30.0
GNPA % ( Overall )
>> GNPA% ( Individual)
>> GNPA% ( projects)
NNPA % ( Overall )
PCR% (Incl.Std Prov&others)
2QFY17
9,938
20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
-
NNPA (Overall)Rs
7,064
448
Disbursement Growth 5 YoY
Assets Quality
1QFY17
12,576
7,632
35.0
GNPA (Overall) Rs
4QFY16
80
60
40
20
-

LICHSGFIN
Financials Snap Shot
INCOME STATEMENT
(Rs in Crore)
FY15
Interest Income
FY16
FY17E
FY18E
FY19E
RATIOS
Profitability Metrix (%)
FY15
FY16
FY17E
FY18E
FY19E
10,547
12,251
13,898
15,783
17,906
Int. Exp/Int.Earned (%)
78.8
76.0
74.2
73.4
73.0
Interest Expenses
8,310
9,307
10,317
11,581
13,063
Op. Profit/ Net Inc. (%)
84.4
85.2
84.1
84.9
84.9
Net Interest Income
2,236
2,944
3,581
4,203
4,843
PAT/Net Income (%)
55.4
52.2
50.5
52.0
52.0
148
159
128
133
153
ROA %
1.3
1.4
1.4
1.4
1.4
ROE %
18.0
19.5
19.3
19.8
19.6
EPS (Rs)
27.7
33.0
38.2
45.9
53.0
Fee Income
Income from Invest.
134
92
107
126
144
2,519
3,196
3,816
4,461
5,141
Empl. Benefits Expense
139
165
277
293
338
Op. Cost Metrix (%)
Commission&Brokerage
122
169
181
211
243
Cost to Inc. (%)
15.6
14.8
15.9
15.1
15.1
Advertisement Expenses
29
24
26
30
34
Empl./Ope. Expense %
35.5
34.7
45.7
43.5
43.6
Depreciation
10
10
10
10
10
Comm./Ope. Exp %
31.1
35.5
29.9
31.3
31.3
Net Income
Other Expenses
Operating Expenses
Pre Provisioning Profit
93
107
113
131
151
Other Exp./Ope. Exp %
23.6
22.5
18.7
19.4
19.4
392
474
606
675
775
Tax %
34.1
35.2
35.1
35.3
35.3
2,127
2,721
3,211
3,787
4,366
146
239
206
237
NII Gr. YoY %
17.8
31.6
21.6
17.3
15.2
2,119
2,575
2,971
3,580
4,129
Net Income Gr. YoY %
14.6
26.9
19.4
16.9
15.2
722
907
1,044
1,262
1,456
Op. Expense Gr. YoY%
14.2
21.0
27.7
11.4
14.8
1,398
1,667
1,927
2,318
2,673
Op. Pofit Gr. YoY %
14.6
28.0
18.0
17.9
15.3
5.9
19.5
15.6
20.3
15.3
Yield on Avg. Loan %
10.7
10.7
10.5
10.3
10.1
Cost Of Borrowing %
9.5
9.2
8.8
8.6
8.5
Spread %
1.3
1.5
1.7
1.7
1.6
NIM %
2.3
2.6
2.7
2.8
2.8
Gross NPAs (Rs cr)
495
568
749
828
952
Net NPAs (Rs cr)
234
270
317
331
381
Gross NPAs %
0.5
0.5
0.5
0.5
0.5
Net Provisions
PROFIT BEFORE TAX
TOTAL TAX
PROFIT AFTER TAX
Growth Ratio YOY (%)
PAT Gt. YoY %
BALANCE SHEET
(Rs in Crore)
FY15
FY16
FY17E
FY18E
FY19E
LIABILITY
Share Capital
Reserves and surplus
Shareholders' Fund
101
101
101
101
101
7,779
9,114
10,655
12,498
14,610
7,880
9,215
10,756
12,599
14,711
96,547
110,936
127,000
146,050
167,958
Provisions
1,072
1,269
1,453
1,671
1,922
Other Liability
7,131
9,168
10,495
12,069
13,880
112,630
130,587
149,705
172,390
198,470
Total Borrowing
Total LIABILITY
ASSETS
Investments
Advances
241
280
322
371
426
108,361
125,173
143,949
165,541
190,372
Spread Analysis (%)
Asset-Liability Profile
Net NPAs %
0.2
0.2
0.2
0.2
0.2
PCR %(Incl. Others)
142
144
145
150
150
1.1
1.1
1.1
1.1
1.1
BS Ratio %
Loans/Borrowings (X)
Fixed Assets
90
102
113
124
136
Debt/Equity (x)
12.3
12.0
11.8
11.6
11.4
Other Assets
945
1,044
1,097
1,151
1,209
CRAR
15.3
17.0
16.5
16.5
16.5
Cash Balance
2,993
3,987
4,224
5,202
6,326
Tier I
11.8
13.9
14.0
14.1
14.2
Total ASSETS
112,630
130,587
149,705
172,390
198,470
Tier II
3.5
3.2
2.5
2.4
2.3
Narnolia Securities
Ltd
6
BUY
NIIT TECHNOLOGIES LTD.
18th Jan 2017
Company Update
CMP
416
Target Price
480

Upside
Q3FY17 in line with expectations, Expect better Q4FY17. The company

reported flat 3QFY17 revenue at Rs 694 Cr as compared to Rs 693 Cr in
2QFY17. Revenue growth impacted by lower working days & furloughs;
Cutting back of expenses by one of the client in US and depreciation of
Pound and Euro. Operating margins expanded 23bps to 16.8% on the back
of increased revenues from Offshore (Insurance grew 2.1% sequentially).
Other Income stood at Rs 6 Cr during the quarter as compared to Rs 3 Cr in
2QFY17. Marginal increase in ETR to 25.3% from 24.9% in previous qtr due
to higher other income. The PAT grew by 6% to Rs 62 Cr as compared to
59 Cr in 2QFY17.
Market Data
BSE Code
532541
NSE Symbol
NIITTECH
587/370
2,555
198
8,398
52wk Range H/L

Mkt Capital (Rs Cr)
Av. Volume(,000)
Nifty
Stock Performance
1M
3M
12M
Absolute
-3.6
4.2
-12.0
Rel.to Nifty
-7.8
-0.8
-24.9

3QFY17
2QFY17 1QFY17
Promoters
30.7
30.7
30.8
Public
69.3
69.3
69.2
Others
Total
100.0
Company Vs NIFTY
Q3FY17_Keyt Highlights
>>Constant Currency revenues up 0.6% QoQ.

>>The company experienced strong growth in EMEA which expanded 4% in
constant currency, but due to depreciation of GBP and Euro, sequential
growth reported is 0.6%.
>>The quarter saw intake of USD 101 million of new business -USD 51
million from Europe, Middle East and Africa (EMEA), 38 million from the US
and 12 million from Rest of World (RoW).
>>$311 Mn of firm business executable over next 12 months
>>3 new customers were added during the quarter, 1 each in the US, EMEA
and APAC.
>>Head-count at the end of the quarter stood at 8,809 and attrition rate was
12.6%.
>>DSO days for the quarter stood at 69 days as compared to 73 days in
previous quarter.
>>Utilisation rate for the quarter was 80%.
100.0
100.0
Outlook & Valuation

The company has witnessed an expansion in margins every quarter and is
confident of reaching an exit margin of 17.5% by end of current fiscal.
Offshore revenues has started increasing, GIS business is also doing well,
BFSI segment seeing good traction in insurance business, Some softness
will be seen in BFS but will be picking up going forward. Also the Company
has started maintaining an intake of new businesses of over USD 100
million. There would be some impact of H1BVisa; Management is
concerned about it & looking forward how it pans out. The Company
continue to focus on its digital business which grew 31% over same period
last year. Considering above aspects & Managements positive outlook we
recommend BUY on the stock with the target price of Rs 480.
Financials
2013
2014
2015
2016
Rs,Cr
2017E
Sales
2021
213
21%
2.6
3.03%
2305
231
20%
2.2
2.02%
2372
114
9%
1.8
2.72%
2682
280
19%
1.6
2.01%
2855
256
14%
1.5
1.99%
Net Profit
ROE
P/B
Div Yield

NIITTECH
Management Takeaways
>>Revenue and Margin will expand in Q4FY17.
>>NITL business will be soft in Q4FY17.
>>Seeing strong traction in Insurance business.
>>Revenue started coming from GIS business. Revenue from GIS business stood 35 cr in 3Q as compared to 29 Cr in previous quarter.
>> The Company has clear focus on building its digital business which grew 31% over same period last year. It accounted for 19% of the
revenues.
>>Digital contribution remains 19% as previous quarter due to seasonality and on lo account of BFS.
>>On the H1BVisa issue, Mgt said they are concerned about it and looking forward how it pans out. 25% workforce of the company is working
on H1BVisa.
>>Utilization will be around 80%-82%.
>>Mgt is Confident of reaching an exit margin of 17.5% by end of current fiscal.
>>Management is more concerned about the falling sterling pound and euro than the US dollar.
EBITDA MARGIN %
EBITDA Margin
expanded 23bps to
16.8% on the back of
increased revenues from
Offshore.
Inorganic Revenue
Revenue (Cr)
INCESSANT
GIS
NITL
MORRIS
PROYECTA
1QFY16
22
23
46
46
14
2QFY16
35
31
53
41
15
3QFY16
35
27
43
42
13
4QFY16
41
39
41
40
14
1QFY17
49
27
37
40
13
2QFY17
55
29
36
35
13
3QFY17
53
35
35
35
14
Revenue Mix (%)

ONSITE
OFFSHORE
1QFY16
61%
39%
2QFY16
59%
41%
3QFY16
59%
41%
4QFY16
61%
39%
1QFY17
61%
39%
2QFY17
61%
39%
3QFY17
60%
40%
Revenue Concentration (%)

Top 5
Top 10
4%
7
%
%
DSO (DAYS )
1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

35%
32%
33%
31%
32%
32%
33%
46%
43%
45%
43%
45%
46%
44%
1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
92
89
90
80
78
73
69
NIITTECH
FY13
35
185
8.5
24%
RATIOS
FY14
FY15
38
19
221
225
9.0
9.5
24%
51%
FY16
46
270
9.5
21%
8
1.5
3.0%
11
1.8
2.2%
19
1.5
2.7%
11
1.9
1.9%
19%
25%
17%
22%
8%
18%
17%
22%
1.3
82
1
29
0.0
1.3
89
1
29
0.0
1.2
93
1
33
0.0
1.2
80
0
23
0.0
INCOME STATEMENT
Revenue
Other Income
Total Revenue
COGS
GPM
Other Expenses
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
PBT
Tax
Tax Rate (%)
Reported PAT
Dividend Paid
No. of Shares
FY13
2021
23
2044
112
94%
462
333
16%
57
276
5
293
75
26%
213
51
6
FY14
2305
30
2335
165
93%
492
354
15%
62
292
4
318
80
25%
231
55
6
Share Capital
Reserves
Net Worth
Long term Debt
Short term Debt
Deferred Tax
Capital Employed
Net Fixed Assets
Capital WIP
Debtors
Cash & Bank Balances
Trade payables
Total Provisions
Net Current Assets
Total Assets
FY13
60
1034
1111
6
0
0
1117
466
28
454
233
159
106
630
1539
FY14
61
1263
1343
5
0
0
1348
582
116
564
221
184
115
719
1801
FY15
2372
17
2390
98
96%
597
336
14%
92
244
6
256
54
21%
114
58
6
FY16
2682
21
2703
39
99%
629
476
18%
110
366
5
381
83
22%
280
58
6
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)
BALANCE SHEET
FY15
61
1296
1376
5
0
0
1381
678
116
606
269
216
181
623
1977
FY16
61
1530
1655
6
0
0
1662
837
1
590
336
165
219
775
2249
OP/(Loss) before Tax

Depreciation
Direct Taxes Paid
O.profit befo. WC changes
CF from Op. Activity
Capital expenditure
CF from Inv. Activity
Repayment of LT Borrow.
Interest Paid
Divd Paid (incl Tax)
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Opening Balance
Closing Balance

FY13
293
57
-72
355
235
-93
-113
0
-2
-57
-91
30
165
202
CASH FLOW STATEMENT

FY14
FY15
318
256
62
92
-104
-92
389
415
145
338
-140
-188
-100
-177
0
0
-1
-3
-55
-65
-53
-66
-7
14
202
217
217
224
FY16
381
110
-99
528
362
-161
-304
12
-3
-73
-73
-16
224
288
HOLD
RELIANCE INDUSTRIES LTD
17-Jan-17
Company Update
CMP
1076
Target Price
1140
1140
Upside
6%
0%
Market Data
BSE Code
500325
NSE Symbol
RELIANCE
1129/888
348783
496
8693
52wk Range H/L

Mkt Capital (Rs Cr)
Av. Volume(,000)
Nifty
Stock Performance
1M
3M
12M
Absolute
(2.1)
17.7
6.2
Rel.to Nifty
(0.2)
11.5
(10.4)

3QFY17
2QFY17 3QFY16
Promoters
46.5
46.7
46.7
Public
Others
53.5
53.3
53.3
Reliance has reported revenue growth of 16% YoY to Rs. 84189 Cr in

3QFY17 vs Rs. 72513 Cr in 3QFY16. EBITDA margin declined by 180 bps
to 13.7% in 3QFY17.PAT has increased from Rs. 7245 Cr to Rs. 7506 Cr
(growth of 4% YoY). Reliance has outperformed benchmark Singapore
complex by USD 4.1/bbl. The company has reported GRM of USD 10.8/bbl
in 3QFY17 vs USD 11.5 /bbl in same quarter of FY16. Reliance seems to
be in robust expansion mode and it came up with Jio Infotech with a rapid
growing speed of 6 Lakh new subscribers every day which positioned Jio
among fastest growing telecom company in India.
Outlook
In just 83 days of launch, Reliance Jio has achieved subscriber base of

50Mn and has targeted to acquire 100Mn subscribers by March 2017, while
maintaining the ARPU of Rs. 300 per month. As per the management, Jio
will be able to retain 30% of its subscribers post expiry of free trial offer on 1
April 2017. Jio will recognize revenue from April 2017. In 3QFY17, Reliance
commissioned the first phase of new Paraxylene(PX) project at Jamnagar
.With the commissioning of this plant, PX capacity will more than double
from 2.0 to 4.2 MTPA. Considering the future growth prospects, we
recommend Hold rating in this stock with a target price of Rs. 1140
Corporate Highlights For The Quarter (3Q FY17)

Gross Refining Margin (GRM) of USD 10.8/bbl for the quarter
In December 2016, RIL commissioned the first phase of new Paraxylene
project at Jamnagar
Outstanding debt as on 31st December 2016 was Rs.194,381 cr
compared to Rs. 180388 cr as on 31st March 2016.
The capital expenditure for 3Q FY 17 was Rs. 37,791 crore.
Interest cost was at Rs. 1,209 crore in 3QFY17 as against Rs. 945 crore
in corresponding period of FY16, increase is primarily on account of higher
average exchange rate for the quarter.
Company Vs NIFTY
120
RELIANCE
Reliance has operated 1,151 petroleum retail outlets in the country in

3QFY17.
NIFTY
115
110
Exports from India operations were higher by 4.0% at Rs. 38,038 crore
105
100
95
90
85
Jan-17
Dec-16
Oct-16
Nov-16
Sep-16
Jul-16
Aug-16
Jun-16
Apr-16
May-16
Feb-16
Mar-16
Jan-16
80
Aditya Gupta
Financials
2012
2013
2014
2015
Sales
EBITDA
Net Profit
EPS
P/E
358501
34508
19724
60
12.4
397062
33045
20879
65
12.0
434460
34799
22493
70
13.4
375435
37364
23566
73
11.3
Rs,Cr
2016
276544
44257
27630
85
12.3
aditya.gupta@narnolia.com
10
Petrochemical business
3Q FY17 revenue from the Petrochemicals segment increased by 17.8% YoY to Rs. 22,854 crore, primarily due to increase in
prices across polymers and polyester chain.Petrochemicals segment EBIT increased sharply by 25.5% to Rs. 3,301 crore,
supported by favorable product deltas and marginal volume growth.
E&P Business
3Q FY17 revenues for the Oil & Gas segment decreased by 31.0% YoY to Rs. 1,215 crore. The decline in revenue was led by
lower upstream production and lower domestic gas price realization. The unfavorable upstream price environment impacted
segment EBIT which was at Rs. (295) crore, as against Rs. 258 crore in the corresponding period of the previous year. Domestic
production (RIL share) was at 23.1 Bcfe, down 24% YoY. For the accounting quarter, upstream production (RIL Share) in US
Shale business was 41.4 Bcfe, down 19% YoY basis.
Organised Retail:
Revenues for 3Q FY17 grew by 47.2% Y-o-Y to Rs. 8,688 crore from Rs. 5,901 crore. The increase in turnover was led by growth
across all consumption baskets. The business delivered strong PBDIT of Rs. 333 crore in 3Q FY17 as against Rs.237 crore in the
corresponding period of the previous year. During the quarter, Reliance Retail added 111 stores across various store concepts.
Trends crossed a milestone of 300 stores during the quarter. At the end of the quarter, Reliance Retail operated 3,553 stores
across 686 cities with an area of over 13.25 million square feet.
Refining and Marketing:

During 3Q FY17, revenue from the Refining and Marketing segment increased by 7.5% YoY to Rs. 61,693 crore ($ 9.1 billion).
Segment EBIT was at Rs. 6,194 crore, down 4.3% YoY on account of lower volumes and decline in GRMs. GRM for 3Q FY17
stood at $ 10.8/bbl as against $ 11.5/bbl in 3Q FY16. Reliance GRM outperformed Singapore complex margins by $ 4.1/bbl.
Reliance Jamnagar refineries processed 17.8 MMT in 3Q FY17, marginally lower on QoQ. As at the end of the quarter, Reliance
operated 1,151 petroleum retail outlets in the country.
Digital service
During the quarter, Jio announced the launch of the Jio Happy New Year Offer (JNO) effective from 4th December 2016. Under
the JNO, all the Jio subscribers are entitled to certain special benefits, which comprise of Jios Data, Voice, Video and the full
bouquet of Jio applications and content, absolutely free, up to 31st March 2017.Till 31st Dec 2016 there were 72.4 million
subscribers on the network.Jio is the only operator in India to deploy pan-India LTE on a sub-GHz band, in addition to pan-India
1800MHz and 2300MHz spectrum band.
Key Operating Metrics:
GRM($/bbl)
Singapore GRM
Premium
Exchange rate
GRM(Rs/bbl)
Crude Refined(MT)
Crude Oil Price(USD/bbl)
Crude Revenue(Rs Cr/MMT)
Trend of Crude revenue
3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
7.6
7.6
7.6
7.6
7.6
7.6
7.6
7.6
7.6
7.6
7.6
7.6
7.6
4.3
4.3
4.3
4.3
4.3
4.3
4.3
4.3
4.3
4.3
4.3
4.3
4.3
3.3
3.3
3.3
3.3
3.3
3.3
3.3
3.3
3.3
3.3
3.3
3.3
3.3
62
62
62
62
62
62
62
62
62
62
62
62
62
472
472
472
472
472
472
472
472
472
472
472
472
472
17
17
17
17
17
17
17
17
17
17
17
17
17
111
111
111
111
111
111
111
111
111
111
111
111
111
230,691 230,691 230,691 230,691 230,691 230,691 230,691 230,691 230,691 230,691 230,691 230,691 230,691
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
11
Refining Business
Refining Revenue
Refining EBIT
Refining EBIT Margin
2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17
2QFY17 3QFY17
110,045 107,676
96,668
98,081 103,590
81,777
56,442
68,729
60,768
57,385 48,064
56,568
60,527 61,693
3,243
3,240
3,962
3,814
3,844
3,267
4,902
5,252
5,461
6,491
6,394
6,593
5,975 6,194
3%
3%
4%
4%
4%
4%
9%
8%
9%
11%
13%
12%
10% 10%
Petrochemicals
Petrochemicals Revenue
Petrochemicals EBIT
Petrochemicals EBIT Margin
2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
27,128 27,121 26,541 25,398 26,651 23,001 21,754 20,858 21,239 19,398 20,915 20,718 22,422 22,854
2,381
2,115 2,150 1,863
2,361 2,064 2,003 2,338 2,531 2,639 2,713 2,806
3,417 3,301
9%
8%
8%
7%
9%
9%
9%
11%
12%
14%
13%
14%
15% 14%
Exploration & Production
Oil and Gas Revenue

Oil and Gas EBIT
Oil and Gas EBIT Margin
2,682
2,926 2,798 3,178
3,002 2,841 2,513 2,057 2,067 1,765 1,638 1,340
1,327 1,215
956
607
762 1,042
818
832
489
32
242
90
14
(312)
(491) (295)
36%
21%
27%
33%
27%
29%
19%
2%
12%
5%
1%
-23%
-37% -24%
Retail
Organized Retail Revenue

Organized Retail EBIT
Organized Retail EBIT Margin
3,470
3,941
3,653
3,999
4,167
4,686
4,788
4,698
5,091
6,042 5,781
6,666
8,079 8,688
70
38
24
81
99
133
104
111
117
147
131
148
162 231
2%
1%
1%
2%
2%
3%
2%
2%
2%
2%
2%
2%
2% 3%
Investment Rationale
Massive Capex programme coming onstream: RIL has spent ~70% of the planned USD1850Cr capex (this number was
USD1650Cr earlier) on its four key projects (petcoke gasification, polyester expansion, off-gas cracker and ethane sourcing).
We believe that the three expansion projects: petcoke gasifier, refinery off-gas cracker, and ethane intake facilities will be
fully operational by FY17E.The companys massive capex programme will push future earnings.
Telecom launch in FY18: .The commercial launch will give us better visibility on execution, business outlook, and earnings.
About the Company
RIL is the largest private player in the refining, petrochemical and E&P sectors in India.The petrochemicals segment includes
production and marketing operations of petrochemical products which include, polyethylene, polypropylene, polyvinyl chloride, poly
butadiene rubber, polyester yarn, polyester fibre, purified terephthalic acid, paraxylene, ethylene glycol, olefins, aromatics, linear
alkyl benzene, butadiene, acrylonitrile, caustic soda and polyethylene terephthalate. The refining segment includes production and
marketing operations of the petroleum products. The oil and gas segment includes exploration, development and production of
crude oil and natural gas. RIL has made significant investments in US shale gas. In terms of EBIT, Refining contribute 60% and
Petrochemicals 30%. RIL is also expanding its presence in the areas of consumer retailing and telecom.

12

INCOME STATEMENT
FY13
FY14
FY15
FY16
Revenue (Net of Excise Duty)
397062 434460 375435 276544
EPS
Other Income
7867
9001
8613
7612
Book Value
Total Revenue
404929 443461 384048 284156
DPS
COGS
332250 363022 294046 189054
GPM
84%
84%
78%
68%
Valuation(x)
Other Expenses
26588
31067
37763
35509
P/E
EBITDA
33045
34799
37364
44257
Price / Book Value
EBITDA Margin (%)
8%
8%
10%
16%
Dividend Yield (%)
Depreciation
11232
11201
11547
12916
EBIT
21813
23598
25817
31341
RoE
Interest
3463
3836
3316
3608
RoCE
PBT
26217
28763
31114
35345
Turnover Ratios
Tax
5331
6215
7474
8264
Asset Turnover (x)
Tax Rate (%)
20%
22%
24%
23%
Reported PAT
20879
22493
23566
27630
Dividend Paid
2949
3123
3268
3791
No. of Shares
323
323
324
324
Net Debt/Equity (x)
Share Capital
Reserves and surplus
Shareholders' funds
Long term Debt
Total Borrowings
Non Current liabilities
Long term provisions
Short term Provisions
Current liabilities
Total liabilities
Net Fixed Assets
Non Current Investments
Current investments
Current assets
Total Assets
FY13
2936
179094
182030
70960
89322
12119
531
4557
77912
362357
183439
13979
28869
155914
362357
BALANCE SHEET
FY14
FY15
2940
2943
195730 215539
198670 218482
101016 120777
133808 148742
13025
23619
290
1554
4446
5392
82364 110588
428843 504486
232911 318523
26867
25437
33735
51014
151069 136577
428843 504486
FY16
2948
240695
243643
142000
165954
31439
1869
1636
161916
606214
419722
37005
39928
126587
606214
FY13
65
564
9
14%
RATIOS
FY14
FY15
70
73
615
675
10
10
14%
14%
FY16
85
752
12
14%
12
1.4
1%
13
1.5
1%
11
1.2
1%
12
1.4
1%
11%
9%
11%
8%
11%
8%
11%
8%
1.1
9
50
46
0.4
1.0
8
48
51
0.5
0.7
5
52
58
0.6
0.5
6
62
81
0.6
CASH FLOW STATEMENT

FY13
FY14
FY15
FY16
26217
28763
31114 35345
Depreciation
13393
11201
11547 12916
Direct Taxes Paid
4824
6213
6435
8264
Operating profit before WCchanges
34373
38444
38994 52000
36918
43261
34374 104743
Movement in Loans& Advances
-2610
-426
-232
1917
Capex
-30726 -60087 -63364 -101199
-27650 -73070 -64898 -99282
Repayment of LTB
19182
28215
29413 21223
Interest Paid
-4626
-5619
-6149
-3316
-2949
-3123
-3268
-3791
408
13713
8444 10105
Inc/(Dec) in Cash
9676 -16096 -22080 15566
40780
50456
34552 12545
Closing Balance
50456
34360
12472 28111

Please refer to the Disclaimers at the end of this Report.
13
BUY
BAJAJ CORP LTD
16th Jan. 2017
Company Update
Demonetization impacted volume growth, realization declined
CMP
385
Target Price
490
490
Upside
27%
NA
Market Data
BSE Code
533229
NSE Symbol
BAJAJCORP
438/340
52wk Range H/L

Mkt Capital (Rs Cr)
5,673
Av. Volume(,000)
62
Nifty
8,400
Stock Performance
1M
3M
12M
Absolute
7.3
-4.3
-4.5
Rel.to Nifty
4.5
-0.8
-15.6
Bajaj Almond Hair Oils volume for this quarter declined by 4% YoY due to
demonetization. Previous quarters volume growth for Almond Hair Oil was
1.6%. According to management rural demand is still struggling. We expect
that rural demand will take few more quarters to recover. Overall volume for
this quarter declined by 640 bps QoQ to 6.5%. Realization of Almond Hair
Oil declined by 85 bps QoQ and overall realization declined by 87 bps QoQ
. We expect realization to remain in pressure in 4QFY17 also but after that
company may increase prices to protect its margins.
Q3FY17_Result Update
BAJAJCORPs sales declined by 5% YoY to Rs 187 cr due to 4% decline in

volume of Bajaj Almond Oil. EBITDA declined by 10% YoY to Rs 61 cr led
by higher employee cost and other expenses. Employee cost increased by
256 bps YoY to 8.4% in this quarter. Other expenses increased by 275 bps
YoY to 17.5%. The company tried to manage margins by reducing
advertising and promotion expenses in this quarter. Ad and promotion
expenses declined by 90 bps YoY to 6.9% from 7.8%. EBITDA margin
declined by 182 bps YoY to 32.8% from 34.6%. PAT margin for this quarter
improved by 577 bps YoY to 30.9%. PAT grew by 17% YoY to Rs58 cr.
Outlook

3QFY17 2QFY17 1QFY1
Promoters
66.9
66.9 7 66.9
Public
33.1
33.1
33.1
Others
0.0
0.0
0.0
100.0
100.0
100.0
Total
Company Vs NIFTY
120
BAJAJCORP
NIFTY
115
110
105
BAJAJCORP 3QFY17 result was below than our expectation due to

demonetization. Major positive for this quarter remained international
business which contributed more than 5% in this quarter. Exports business
in this quarter grew by 72% although from a very low base. Company is
focusing on exports and its plan to enter in Russia, Indonesia and Egypt in
on the way. Companys modern trade volume grew by 27% YoY and
contributed 5.2% of the total sales in Q3FY17. We expect modern trade to
keep growing in strong pace. GST may be game changer for organized
FMCG players. Implementation of GST will lead to market share gain as
well as improvement in realization if company keeps some of its benefits.
BAJAJCORP has a strong balance sheet with approx. no debt and dividend
yield of approx. 3% which makes it very lucrative at this price. Considering
these positives and low valuation we still hold positive view on this stock
with a previous target price of Rs 490.
100
95
Financials
FY15
FY16
FY17E
FY18E
85
Sales
80
EBITDA
826
239
173
12
35%
876
274
196
13
41%
786
261
227
15
45%
786
243
223
15
42%
90
Net Profit
EPS
Rajeev Anand
ROE
in Rs Cr
FY19E
877
262
240
16
45%
rajeev.anand@narnolia.com
14
BAJAJCORP
Investment Rational
Strong Balance Sheet: BAJAJCORP has strong balance sheet with no long term debt and Rs 10 cr of short term loan. Secondly it
has cash and current investment of the worth of Rs 328 cr (as per FY16) in balance sheet which can be used for acquisition of the
new businesses going forward.
High Dividend Yield: The Company is giving dividend regularly and, at the present price, its dividend yield is approx. 3% which is
positive for a long term investor. It gives cash flows to the investor at regular period and a reason to hold company for long term.
Strong brand presence: Bajaj Almond Drop hair oil has strong presence in the light hair oil market with approx. 60% of market
share. In last eight years, it has continuously gained market share which shows strength of the brand. In recent six months of
FY17, it has lost 80 bps of market share but we need to see the yearly figure to make certain conclusion.
Strong expected growth in export business: The Company is strengthening its presence in international market. Currently in
1HFY17, exports contributed approx. 5% of its total revenue. Management guided that in next two years it will reach to double
digits.
GST: GST may be the game changer for the well established FMCG players. Implementation of GST will shift market share for
unorganized players to organized players. It will improve market share of the FMCG companies. So it may be one of the growth
drivers for BAJAJCORP going forward.
Q3FY17 Result Concall Highlights

The company has to increase direct reach but it will not cost much.
Due to demonetization, whole sale trade is impacted and there is no sign of it coming back in near term.
Management is looking for acquisition but Target Company is still not in the view.
27% rise in modern trade volume in this quarter. Modern trade contributed 5.2% of the total sales in Q3FY17.
Contribution from rural remained 42.5% in this quarter and in pre demonetization it was 43.6%.
New product launch will happen in 1QFY18.
Announced temporary incentive to channel partners.
Canteen trade reduced by13.5% in this quarter.
The company has reserve of LLP till March2018. It can go beyond this if volume will remain like that.
LLP prices remained Rs46/kg for this quarter and presently, it is trading at Rs 54/kg.
Volume growth in light hair oil 2.1%
International business grew by 72% YoY in this quarter and contributed more than 5% in this quarter.
Plans for entering in larger market Russia, Indonesia and Egypt is under way.
About The Company

BAJAJ CORP is engaged in the business activity of trading and manufacturing of cosmetics, toiletries and other personal care
products. It is a fast moving consumer goods (FMCG) company. The Company's products include Bajaj Kailash Parbat Thanda Tel,
Bajaj Almond Drops Hair Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Jasmine Hair Oil, Bajaj Nomark Oily Skin Face Wash, Bajaj Nomarks
Herbal Scrub Soap, Bajaj Nomark Oily Skin Cream, Bajaj Nomarks Neem Soap, Bajaj Nomarks Oil Control Soap and others. The
Company has approximately nine Factory, of which four units are situated in Himachal Pradesh , three units are situated in
Uttrakhand for manufacturing of various variants of hair oils and Nomarks and other unit is situated in Guwahati and one unit
Bangladesh.The company reaches consumers through 3.6mn retail outlets serviced by 7707 distributors and 11500 wholesalers.

15
BAJAJCORP
Almond Drops Hair Oil (ADHO) Volume Gr(%)YOY

8%
6%
ADHO Volume Gr(%)YOY
6%
4%
2%
2%
1%
2%
We expect volume to decline

by 1.6% for ADHO in FY17E.
0%
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
-2%
-4%
-4%
-4%
-6%
Net Sales and PAT (in cr.)

250
Net Sales(in cr)
PAT(in cr)
200
52
58
187
197
204
54
49
47
50
209
196
100
208
150
58
We expect Sales of Rs 786 cr

and PAT of Rs227 cr for
BAJAJCORP in FY17E. This
estimate can be negatively
affected if crude oil prices go
up sharply and rural demand
take longer to recover.
0
2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Prices of Light Liquid Paraffin(LLP) and Refined Oil

110
Light Liquid Paraffin(LLP) price(Rs/Kg)

93.76
90
Refined Oil price(Rs/kg)
86.21
82.02
73.15
70
59.51
58.82
83.97
75.97
54.7
46.41
50
43.91
46.37
30
10
-10
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
3QFY17

16
BAJAJCORP
Revenue
Other Income
Total Revenue
COGS
GPM
Other Expenses
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
PBT
Tax
Tax Rate (%)
Reported PAT
Dividend Paid
No. of Shares
FY16
876
29
905
298
66.0%
257
274
31%
0
269
0
297
54
18.1%
196
204
15
INCOME STATEMENT
FY17E
FY18E
786
786
51
47
837
833
274
282
65.2%
64.1%
191
191
261
243
33%
31%
5
6
256
237
1
0
306
283
62
60
20.1%
21.3%
227
223
212
202
15
15
Share Capital
Reserves
Net Worth
Long term Debt
Short term Debt
Deferred Tax
Capital Employed
Net Fixed Assets
Capital WIP
Debtors
Trade payables
Total Provisions
Net Current Assets
Total Assets
FY16
15
466
481
0
10
1
481
97
1
25
58
44
0
340
566
BALANCE SHEET
FY17E
FY18E
15
15
489
510
504
525
0
0
10
10
1
1
504
525
79
78
1
0
26
24
59
68
34
39
0
0
381
403
577
603
FY19E
877
49
926
325
63.0%
211
262
30%
6
256
0
305
65
21.3%
240
230
15
FY19E
15
520
534
0
10
1
534
78
0
19
40
43
0
412
621
EPS
Book Value
DPS
Valuation(x)
P/E
Price / Book Value
Dividend Yield (%)
RoE
RoCE
Turnover Ratios
Asset Turnover (x)
Net Debt/Equity (x)

Depreciation
Direct Taxes Paid
Oper. Prof. bef. WC chang.
Capital expenditure
Inc/(Dec) in Cash
Closing Balance

FY16
13.3
32.6
13.8
104%
RATIOS
FY17E
FY18E
15.4
15.1
34.2
35.6
14.4
13.7
94%
91%
FY19E
16.3
36.2
15.6
96%
29
11.8
3.6%
24
11.0
3.1%
25
10.5
3.1%
23
10.3
3.5%
41%
56%
45%
51%
42%
45%
45%
48%
1.5
11
61
18
0.0
1.4
12
65
16
0.0
1.3
11
62
18
0.0
1.4
8
55
18
0.0
FY16
297
5
-53
274
193
-17
6
-204
-194
5
4
9
CASH FLOW STATEMENT

FY17E
FY18E
306
283
5
6
-62
-60
312
289
240
237
-5
-6
-35
-26
-212
-202
-212
-202
-7
9
58
59
58
68
FY19E
305
6
-65
311
258
-6
-56
-230
-230
-28
68
40
17
BUY
INFOSYS LTD.
16th Jan 2017
Company Update
CMP
975
Target Price
1210
1285
Upside
32%
Market Data
BSE Code
500209
INFY
1278/900
223,987
3426
8,400
NSE Symbol
52wk Range H/L
Mkt Capital (Rs Cr)
Av. Volume(,000)
Nifty
Stock Performance
1M
3M
12M
Absolute
-0.4
7.6
-11.4
Rel.to Nifty
-3.7
3.5
-22.9

2QFY17
1QFY17 4QFY16
Promoters
12.8
12.8
12.8
Public
86.8
86.8
86.8
Others
0.49
0.49
0.49
100.0
100.0
100.0
Total
Infosys Q3 profit up 3% to Rs 3,708 cr, revises revenue guidance. INFY

lowered its full year dollar revenue guidance to 7.2-7.6% from 8.6-9% while
revenue guidance in constant currency revised to 8.4-8.8% from 8-9%. The
companys Q3FY17 revenue declined 0.2% sequentially in INR terms and
dollar revenue also slipped 1.4% to USD 2,531 million compared with
previous quarter, with volume growth of 0.2%. Its dollar revenue fell (down
0.3% QoQ) for first time in last seven quarters due to RBS deal cancellation
and seasonal weakness. The Company has crossed USD 10 billion revenue
mark in the calendar year 2016 and working hard towards achieving USD
20 billion revenue and 30% margin levels by 2020. INFY bottom line jumped
2.83% on a QoQ basis to Rs 3,708 crore from Rs 3,606 crore in the
sequential quarter ended September 30, 2016.
Q3FY17_Key Highlights
>>Financial services & insurance business during the quarter fell 0.8%
sequentially but grew 0.2% in constant currency despite RBS deal
cancellation.
>>Revenue from its manufacturing & hi-tech business declined 1.5% QoQ
as well as 0.5% in constant currency.
>>Retail, consumer packaged goods and logistics segment also reported
degrowth of 1.5% QoQ & 0.4% in constant currency, and energy, utilities,
communication & services business slipped 2.1% and 0.8% in constant
currency.
>>Other income grew by 7.9% sequentially to Rs 820 crore in 3QFY17.
>>It added 77 clients during the quarter. Also added 2 clients in USD 75
million revenue category, 9 clients in USD 10 million category and 1 client in
USD 25 million revenue category.
>>Total active clients at the end of 3QFY17 were at 1,152 that increased
from 1,136 clients in previous quarter.
>>It has reported highest ever utilization of 81.9% in Q3FY17.
>>Net headcount reduced by 66 in Q3FY17 against an increase of 2,779
employees in Q2FY17.
Outlook & Valuation
Company Vs NIFTY
In Q3, we saw continued momentum for software and services coming

together to drive new value for clients. Having hit the USD 10 billion mark in
annual revenue run rate, it has performed well and is optimistic about the
fourth quarter of the current fiscal .There would be some impact of the H1-B
depending on the nature of the policy that is enacted but "it is not something
Mgt is overly concerned about." The company presently is trading at 3.3
times FY17 earnings. With this we remain positive on the stock and
recommend 'BUY' with the target of 1210 at P/b of 3.3 times FY17 Book
Value.
Financials
2013
2014
2015
2016
Rs,Cr
2017E
Sales
40352
9429
24.8%
4.4
1.5%
50133
10656
23.9%
4.2
1.9%
53319
12372
24.4%
5.0
2.0%
62441
13678
23.7%
4.8
2.0%
66812
14362
21.5%
3.3
2.5%
Net Profit
ROE
P/B
Div Yield

18
INFY
Attrition Rate dropped 18.4% from 20% sequentially
The continued efforts of

Management to improve
employee engagement and
experience resulted in a
reduction in attrition.
Client Contribution to Revenues
The decline in Top Client was

due to due to RBS deal
cancellation and seasonal
weakness.
Management views on H1BVisa
Management says, it is too early to comment on it as they dont know what the policy is going to be. Depending on the nature of the
policy, it can have an impact from small impact to larger impact but longer-term they expect that the administration is going to be a
business friendly and innovation friendly administration, an entrepreneurial administration. Also added that Local hiring is a good idea,
and they are absolutely committed to that. They have been working on this and are committed to US jobs and to dramatically expanding
that and that is a good idea anyways so that the clients can get the best of both -- the local and the global business practices.
Management Takeaways
>>Mgt continue to focus sharply on the execution of strategy, as reflected in the growing embrace of AI-based automation, growth in
new software-led business, delivering innovation, both incremental & breakthrough and fostering a learning-led culture.
>>Manufacturing segment was weak due to lower billing days, which would bounce back in Q4 while retail continued to be volatile
and energy was relatively soft. Mgt expects most sectors to bounce back next year barring energy.
>>Downward steady pricing pressure is expected to remain, but optimistic on Q4FY17 and very optimistic about BFSI segment
growth.
>>Rupee depreciation gave a 30 bps advantage in margin terms for Q3FY17 and the management is keeping a close eye on
developments pertaining to the H1-B visa issue.
>>USD 20 billion is an aspirational target that Co. has but not only USD 20 billion, also 30% margin and 80,000 revenue per
employee because they want to elevate the way that they work so that it continues to be their aspiration and their endeavour.

19
INFY

INCOME STATEMENT
Revenue
Other Income
Total Revenue
COGS
GPM
Other Expenses
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
PBT
Tax
Tax Rate (%)
Reported PAT
Dividend Paid
No. of Shares
FY13
40352
2365
42717
FY14
50133
2664
52797
FY15
53319
3430
56749
FY16
62441
3128
65569
1557
11533
29%
1099
10434
0
12799
3370
26%
9429
3122
57
2119
13381
27%
1317
12064
0
14728
4072
28%
10656
3144
57
2478
14871
28%
1017
13854
0
17284
4911
28%
12372
4935
115
2497
17120
27%
1266
15854
0
18982
5301
28%
13678
9062
229
FY13
286
37708
37994
0
0
56
37994
8279
1140
7083
21832
189
4151
27244
46331
FY14
286
44244
44530
405
0
0
44935
9339
961
8351
25950
173
6814
31047
56966
EPS
Book Value
DPS
Valuation(x)
P/E
Price / Book Value
Dividend Yield (%)
RoE
RoCE
Turnover Ratios
Asset Turnover (x)
Net Debt/Equity (x)
FY13
164.2
661.6
54.4
33%
Share Capital
Reserves
Net Worth
Long term Debt
Short term Debt
Deferred Tax
Capital Employed
Net Fixed Assets
Capital WIP
Debtors
Trade payables
Total Provisions
Net Current Assets
Total Assets
FY16
1144
56682
57826
0
0
0
57826
14140
960
11330
32697
386
9328
34564
75141

Depreciation
Direct Taxes Paid
O.profit befo. WC changes
Capital expenditure
Repayment of LT Borrow.
Interest Paid
Inc/(Dec) in Cash
Closing Balance

FY16
59.6
252.1
39.5
66%
4
1.1
4
1.1
10
2.5
20
4.8
25%
27%
24%
27%
24%
27%
24%
27%
0.9
64
0.9
61
0.8
66
0.8
66
2
0.0
1
0.0
1
0.0
2
0.0
BALANCE SHEET
FY15
572
50164
50736
50
0
0
50786
12122
776
9713
30367
140
8493
31739
66289
RATIOS
FY14
FY15
185.6
107.7
775.5
441.8
54.8
43.0
30%
40%
FY13
12799
1099
-3293
-951
7373
-2095
-3020
-89
-438
-3210
1241
20591
21832
CASH FLOW STATEMENT

FY14
FY15
FY16
14728
17283
18979
1317
1017
1266
-3874
-6751
-5865
-556
-1337
-1105
9825
8353
9863
-2748
-2255
-2723
-2577
1088
-686
0
0
0
0
-3144
4118
21832
25950
0
-4935
4417
25950
30367
0
-6813
2330
30367
32697
20
BUY
MCX
16th Jan. 2017
Company Update
CMP
1190
Target Price
1470
Upside
24%
Market Data
BSE Code
534091
NSE Symbol
MCX
1420/726
6,071
374
8,400
52wk Range H/L

Mkt Capital (Rs Cr)
Av. Volume(,000)
Nifty
Stock Performance
1M
3M
12M
Absolute
-11.3
-9.7
32.4
Rel.to Nifty
-14.1
-6.2
21.3

3QFY17
2QFY17 1QFY17
Public
99.7
99.7
99.6
Others
0.3
0.4
0.4
100.0
100.0
100.0
Company Vs NIFTY
150
Q3FY17_Result Update
MCX sales for this quarter grew by 20% YoY led by increase it transaction
fees. EBITDA declined by 4% YoY due to one off employee (Rs 3.5 cr) and
Other expenses(Rs 1.75 cr). EBITDA margin declined by 712 bps YoY to
28.1% from 35.2%. Ad and promotion cost for this quarter declined by 394
bps YoY to 1% from 5%. The company has reported other income of Rs 31
cr in this quarter as against Rs 20 cr in Q3FY16. PAT margin for this quarter
improved by 1873 bps YoY led by strong other income number.PAT grew by
94% YoY to Rs 34 cr in this quarter.
Concall Highlights:
Promoters
Total
Result reported by mcx is largely inline to our estimates. Ebitda margin

disappointed us. EBITDA margin declined due to one off Rs 3.5cr employee
expenses provisioning of previous two quarters and one off other expenses
of approx. Rs1.75 cr. Average daily turnover is remained 21023 cr in this
quarter lower by approx. 16 percent to the previous quarter. Sales for this
quarter was largely inline to our estimates. Mcx will be key beneficiary of
launch of option trading in commodity market. For a longer term perspective
launch of option will have a very positive effect on company's volume. Mcx
has strong balance sheet with no debt . As market will mature, more trading
participants will be allowed to hedge and trade in commodity market which
will be positive for MCX as it has dominant market share. Earlier we had
BUY recommendation on MCX at the price of Rs 991 for the target price of
nd
Rs 1400 on 2 sept2016 and we booked profit in it on 30 Sept2016(up by
38%). Form our book profit price, now MCX has corrected much and
considering long term prospects of MCX, we are bullish on this stock. We
recommend to buy this stock with a target price of Rs 1470.
MCX
NIFTY
140
130
120
Post demonization some impact in volume. Bullion segment volume is

impacted. Turnover in this segment took some down turn.
The company will looking for launching new products in future segment .
Filed application for creating Clearing Corporation and expected to get
approval in 4-6 weeks. After approval, MCX will launch it in 1QFY18.
The company has launched contract on caster seeds.
At present there MCX has no plan to open an exchange in GIFT CITY. But
company is keeping close eye on latest developments.
The company is expecting bullion segment volume to come back.
Optional trading: After SEBI final guidelines, it will take 4 weeks to launch
options contracts in MCX.
110
100
90
Financials
2013
2014
2015
2016
Sales
524
315
113
59
26%
341
146
18
30
13%
222
88
61
25
10%
235
77
40
8
4%
EBITDA
80
Net Profit
EPS
Rajeev Anand
rajeev.anand@narnolia.com
ROE

Rs,Cr
2017E
269
91
61
30
12%
21
MCX
Average daily turnover(in cr.)
33500
Average daily turnover(in cr)
28500
23500
18500
13500
8500
3500
-1500
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
Net Sales and PAT(in cr.)

80
Net sales(in cr.)
PAT(in cr.)
70
60
50
38
40
34
33
31
27
30
18
20
69
65
63
61
57
61
10
0
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
Employee Cost (as % of Sales)

35%
Employee Cost (as % of Sales)
29%
30%
25%
20%
18%
18%
18%
2QFY16
3QFY16
4QFY16
23%
22%
1QFY17
2QFY17
15%
10%
5%
0%
3QFY17

22
MCX
PRODUCTS OFFERED
24 commodity futures
traded
Key among them:

Precious metals
Gold
Silver
Metal
Aluminium
Copper
Lead
Nickel
Zinc
Energy
Crude Oil
Natural Gas
Agricommodities
Cardamom
Cotton
Crude Palm Oil
Mentha Oil
SETTLEMENT
MARKET PARTICIPANTS
Physical Delivery
(Gold, Silver,Cardam
om, Cotton,Mentha
Oil)
Producers
Manufacturers
MSMEs
Consumers
Individuals
Traders
Algo traders
Brokers
SUBSIDIARY
Multi Commodity
Exchange Clearing
Corporation
Ltd.(MCXCCL)*
(100%)
* - MCXCCL has not commenced operations,. Its current paid-up capital is Rs. 6 crore. Application for Clearing
Corporation made to SEBI, it will get operational in FY 2017-18
View & Valuation

Average daily turnover is remained 21023 cr in this quarter lower by approx. 16 percent to the previous quarter. Sales for this
quarter was largely inline to our estimates. For a longer term perspective launch of option will have a very positive effect on
company's volume. Mcx has strong balance sheet with no debt . As market will mature, more trading participants will be allowed to
hedge and trade in commodity market which will be positive for MCX as it has dominant market share. Earlier we had BUY
nd
recommendation on MCX at the price of Rs 991 for the target price of Rs 1400 on 2 sept2016 and we booked profit in it on 30
Sept2016(up by 38%). Form our book profit price now MCX has corrected much and considering long term prospects of MCX, we
are bullish on this stock. We recommend to buy this stock with a target price of Rs 1470.
About The Company

MCX is Indias first listed exchange for clearing and settlement of commodity futures transactions, thereby providing a platform for
risk management.MCX offers trading in varied commodity futures contracts across segments including bullion, industrial metals,
energy and agricultural commodities. The Exchange focuses on providing commodity value chain participants with neutral, secure
and transparent trade mechanisms, and formulates quality parameters and trade regulations, in conformity with the regulatory
framework.The Exchange has an extensive national reach, with 49,000+ Authorised Persons with its presence in around 1500
cities and towns across India as on 31 September, 2016. MCX is Indias leading commodity derivatives exchange with a market
share of 89.2 per cent in terms of the value of commodity futures contracts traded H1 2016.
23
MCX
FY14
30.0
224.7
3.5
12%
RATIOS
FY15
FY16
24.6
8.3
236.2
236.7
12.0
7.8
49%
94%
FY17E
30.1
254.8
12.0
40%
20
2.6
0.6%
32
3.4
1.5%
106
3.7
0.9%
42
4.9
1.0%
13%
8%
10%
4%
4%
4%
12%
5%
0.2
5
0
7
0
0.1
10
0
37
0
0.1
17
0
16
0
0.1
7
0
29
0
INCOME STATEMENT
Revenue
Other Income
Total Revenue
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
PBT
Tax
Tax Rate (%)
PAT
Dividend Paid
No. of Shares
FY14
341
100
440
146
42.8%
34
111
106%
210
57
27%
153
18
5.10
FY15
222
110
333
88
39.4%
26
62
137%
170
45
26%
125
61
5.10
Share Capital
Reserves
Net Worth
Long term Debt
Short term Debt
Deferred Tax
Capital Employed
Net Fixed Assets
Capital WIP
Debtors
Trade payables
Provisions
Net Current Assets
Total Assets
FY14
51
1095
1146
0
0
15
1363
130
0
9
342
34
44
1154
1743
FY15
51
1154
1205
0
0
10
1426
114
0
11
266
10
73
1236
1827
FY16
235
98
333
77
32.6%
25
52
4%
84
41
49%
42
40
5.10
FY17E
269
138
407
91
33.9%
18
73
20%
210
57
27%
154
61
5.10
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
FY16
51
1156
1207
0
0
5
1423
140
0
4
500
19
47
1035
1820
FY17E
51
1249
1300
0
0
5
1516
170
0
5
380
26
47
1030
1938

Depreciation
Direct Taxes Paid
(Inc)/Dec in Wkg Cap
Capital expenditure
Interest Paid
Inc/(Dec) in Cash
Closing Balance

FY14
210
34
-38
-90
38
-6
53
-1
-113
-113
-22
75
53
CASH FLOW STATEMENT

FY15
FY16
FY17E
170
150
210
26
25
18
-41
-29
-57
21
52
24
70
104
197
-8
-21
-48
-68
-57
-256
-1
0
0
-18
-61
-61
-19
-61
-61
-18
-14
-121
53
35
500
35
21
379
24

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 18th January

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IEA Report

18th Jan 2017

18th Jan 2017

17th Jan 2017

16th Jan 2017

16th Jan 2017

16th Jan 2017

IEA Edition No.-

Steady and Consistent Performance

Previous Target Price

Change from Previous

52wk Range H/L

Share Holding Pattern-%

LICHSGFIN posted 3Q FY17 results largely as per our expectation. Net

Margins Improved but intense competition will limit spread improvement.

Stable Assets Quality

Outlook & Valuation

Narnolia Securities Ltd

Cost of Fund% (Cal.)

Loan Portfolio Breakup

Project/Developer loan portfolio

Total Loan portfolio

Project/Developer loan portfolio

Loan Growth % YoY

Borrowing Composition Breakup %

Non Convertible Debentures (NCD)

PCR% (Incl.Std Prov&others)

Disbursement Growth 5 YoY

Narnolia Securities Ltd

Int. Exp/Int.Earned (%)

Op. Profit/ Net Inc. (%)

Net Interest Income

PAT/Net Income (%)

Empl. Benefits Expense

Op. Cost Metrix (%)

Cost to Inc. (%)

Other Exp./Ope. Exp %

NII Gr. YoY %

Net Income Gr. YoY %

Op. Expense Gr. YoY%

Op. Pofit Gr. YoY %

Yield on Avg. Loan %

Gross NPAs (Rs cr)

Net NPAs (Rs cr)

Growth Ratio YOY (%)

PAT Gt. YoY %

Spread Analysis (%)

PCR %(Incl. Others)

NIIT TECHNOLOGIES LTD.

18th Jan 2017

Previous Target Price

Q3FY17 in line with expectations, Expect better Q4FY17. The company

52wk Range H/L

Share Holding Pattern-%

>>Constant Currency revenues up 0.6% QoQ.

Outlook & Valuation

Narnolia Securities Ltd

Revenue Mix (%)

Revenue Concentration (%)

1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

Financials Snap Shot

OP/(Loss) before Tax

Narnolia Securities Ltd

CASH FLOW STATEMENT