IEA Report

15th Mar 2017

CDSL : IPO Note "SUBSCRIBE" 15th Mar 2017
CDSL and NSDL are the only two share depositories in India. BSE currently owns 54.2% stake in CDSL and through the offer is selling its 30% stake
to cut down its holding to 24%. CDSL is being offered at P/b of 3.1times FY17E BV. The company provides sustainable Roe visibility of ~17% for
long term. We recommend SUBSCRIBE owing to following counts:
>>Niche business segment
>>Asset light business model
>>High operating leverage
>> Sustainable return ratios visibility
>>Attractive dividend yield (~2.7%) . ....................................................... ( Page : 2-4)

SUNPHARMA "BUY" 15th Mar 2017

Synergies from the Ranbaxy acquisitions are gaining momentum and the company is on track to achieve the targeted benefits. Lifting of import
ban from Mohali facility will improve US revenue. Sunpharma has further strengthened the branded ophthalmic pipeline through the acquisition
of Ocular Technologies. Though the company has maintained its guidance of 8-10% sales growth for FY17E, we are optimistic for stronger and
healthy growth in longer term. Next big trigger for the company can be Halol plant resolution.Considering above arguments we recommend
BUY rating on this stock with the target price of Rs. 795. We are analysing the financial viewpoint of mohali plant and will update as and more
clarity willl emerge. .................................... ( Page : 5-7)

JKIL "BUY" 10th Mar 2017

JKIL is the one of the best EPC Company with lower Debt to equity. Strong order book and execution of Mumbai metro projects boosted revenue
in Q3FY17and we expect it to continue. Earlier we had a concern related to execution of JNPT road project but now we have received clarification
from management and we expect healthy execution from JNPT projects in FY18 as the utility shifting work will complete in Q4FY17. However, still
we do not have clear view on higher level of debtors but we believe it will not affect working capital in bigger way. We expect 9%, 20% and 27%
revenue growth in FY17, FY18 & FY19 respectively based on the strong order book and Mumbai metro projects. So considering the clarification on
JNPT road projects and strong revenue growth going forward, we recommend BUY on the stock with unchanged target price of Rs.330.
..................................................... ( Page : 8-13)
"PART BOOK
RELIANCE 9th Mar 2017
PROFIT"
Today LTE enabled handsets are increasing at the rate of 8-9 mn/month. With its attractive plans and Only operator with pan-India sub-GHz LTE
spectrum, Jio is ready to en-cash this market opportunity. We expect ROE of 11% in FY17E. Reliance has rallied smartly recently and has crossed
our price target of Rs 1280. Short term investor may book profit at current levels. But for long term investors we raise out 18 months target to
Rs 1408 . .......................................................... ( Page : 14-17)

AVENUE SUPERMARTS LIMITED : IPO Note "SUBSCRIBE" 8th Mar 2017

D-Mart has NPM of 4.4% for FY17E which will further increase after debt repayment out of IPO proceeds. With ROE of 20 and P/B of 8.5 times
FY17E , The company is cheaply valued compared to its listed peers. None of the other listed supermarket/ retailers are having such light Balance
sheet with better Net Profit margins. D Mart has a well executed Business Model and is attractively placed in Retailing where the story in India is
sustainable growth for longer term. We recommended SUBSCRIBE. ........................... ( Page : 18 -20)

DHFL "BUY" 7th Mar 2017

DHFL has continuously performed well in its operating parameters with healthy AUM growth and stable assets quality. We expect the AUM
growth of 18%-19% going forward. Recently huge rate cut by banks has raised the concerns over the margin protection for Housing Finance
companies. However due to strategy of management for efficient liability mix and increasing share of non-core home loan portfolio, we expect
DHFL to maintain its NIM at 3% level. Improving operating efficiency has boosted the bottom line of the company and we expect this trend to
continue in FY18. Also the stake sale deal will further boost the earnings for the company with free from concern of stake dilution for next 2 to 3
years. We recommend BUY with target price of Rs 385. .............................. ( Page : 21-24)

Narnolia Securities Ltd IEA Edition No. - 973

 "SUBSCRIBE "
CDSL LTD 15th Mar 2017

IPO Note
Issue Detail Company Overview
Type 100% Book Building Central Depository Services (India) Limited (CDSL) is a subsidary of BSE India which was
Issue Size Rs.400 Crore incorported in 1999. It operates as a securities depository in India. They offers various services,
Offer Price *Rs (115 - 135)/Equity Share such as account opening, dematerialization, processing delivery and receipt instructions, account
statement, re-materialization, pledging, nomination, transmission of securities, change in address,
Min App Size Shares
bank account details and SMS services for depository participants
Issue Open 15-Mar-17
Issue Close 17-Mar-17 CDSL also offers facilities to issuers to credit securities to a shareholder's or applicant's demat
Shares Offer 3.5Cr accounts; KYC services in respect of investors in capital markets to capital market intermediaries;
Face Value Rs 10 and facilities to allow holding of insurance policies in electronic form to the holders of these
Axis Capital Ltd, Edelweiss insurance policies of various insurance companies
Lead Mgrs Capital Ltd, IDBI Capital
They provides other online services, such as e-voting, e-locker, national academy depository,
Market Services. electronic access to security information, electronic access to security information and execution
Listing NSE
of secured transaction, drafting and preparation of wills for succession, and mobile application and
Registrar Link Intime India Private Ltd transactions using secured texting. It serves investors through intermediaries, such as depository
Market Cap participants, issuer companies, registrar and transfer agents, beneficial owners, and clearing
1410.8
(Post Issue) members.

No of shares ( Post & Pre Issue) Company Strategies

No of Shares (Pre Issue) 104,500,000 > Company offers services to several sub-sectors like capital markets, mutual funds and insurance
companies. There were several client bases including DPs, corporates, stock exchanges, clearing
Offer for Sale 35,167,208 corporations, registrars and the investors. Company have a high stability of operating income from
Fresh Issue made the fixed annual charges collected from companies registered and transactionbased fees collected
from DPs.
No of Shares (Post Issue) 104500000 > Company main costs are employee wages and post employee benefits and software
development and maintenance costs. The employee benefits and software development and
maintenance costs. Company has high economies of scale leading to steady growth in profitability
Bid allocation pattern
QIB 50% Objects of the Issue:
Non-Institutional 15% Particulars
Retail 35% Achieve the benefits of listing the equity share on NSE
Enhance it's visibility and brand image and provide liquidity to it's existing shareholders.

Shareholder Selling Stake

Name of Shareholder Number of Equity Share (%)
BSE Limited 27,217,850 25%
State Bank of India 4,775,000 4.57%
Bank of Baroda 2,174,358 2.08%
The Calcutta StockExchange 1,000,000 0.96%
Total 35,167,208 32.61%
Recommendation
CDSL and NSDL are the only two share depositories in India. BSE currently owns 54.2% stake in CDSL and through the offer is selling its 30%
stake to cut down its holding to 24%. CDSL is being offered at P/b of 3.1times FY17E BV. The company provides sustainable Roe visibility of
~17% for long term. We recommend SUBSCRIBE owing to following counts:
>>Niche business segment
>>Asset light business model
>>High operating leverage
>> Sustainable return ratios visibility
>>Attractive dividend yield (~2.7%)
Narnolia Securities Ltd, 2
Please refer to the Disclaimers at the end of this Report.
 CDSL LTD

Top 10 shareholders
Shareholder Number of Equity Shares Percentage (%)
BSE Limited 52,297,850 50.05
State Bank of India 10,000,000 9.57
HDFC Bank Limited 7,500,000 7.18
Standard Chartered Bank 7,500,000 7.18
Canara Bank 6,744,600 6.45
Bank of India 5,820,000 5.57
Bank of Baroda 5,300,000 5.07
Life Insurance Corporation of India 4,336,750 4.15
Union Bank of India 2,000,000 1.91
Bank of Maharashtra 2,000,000 1.91
Total 103,499,200 99.04

CDSL Revenue streme

Competitive Risks
> There are two securities depositories in India . Company face significant competition for investor
accounts from competitor and Company expects such competition to continue. The securities depository
business competes closely with competitor for DPs, investor accounts and number of instruments on
systems.
> Company rely heavily on technological equipment and IT at our facilities and typically the supply and
maintenance of these systems and equipment is undertaken by third party contractors. Any interruptions
or malfunctions in the operation of IT systems could damage reputation and cause loss for the business

> Company involved in various criminal, civil, labour and tax-related litigations, which are at different
stages of adjudications before various fora. There is outstanding litigation against our Company,
Promoter, Group Companies and Directors which if determined adversely, could affect business and
results of operations.
> There is a shift in consumer preferences away from investing and trading in securities to other
products and services, it could significantly reduce demand for services and adversely affect business,
financial condition and results of operations

Narnolia Securities Ltd, 3

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

 CDSL LTD
Financials Snap Shot
INCOME STATEMENT RATIOS
31 March 31 March 31 March Half Yearly 31 March 31 March 31 March Half Yearly
2014 2015 2016 2017 2014 2015 2016 2017
Revenue (Net) 88.9 105.4 122.9 70.1 EPS 4.7 4.2 7.1 3.8
Other Income 33.9 21.8 16.6 17.5 Book Value Per share 33.8 35.3 39.4 43.2
Total Revenue 122.8 127.2 139.4 87.6 Valuation(x)
Employee Benefits Expense 17.5 19.2 21.6 10.8 P/E ( Upper Band ) 28.8 32.5 19.1 35.5
Other expenses 38.8 40.8 37.7 18.8 P/E ( Lower Band ) 24.5 27.7 16.3 30.2
Total Expenses 56.2 60.0 59.3 29.6 Price / Book Value 4.0 3.8 3.4 3.1
EBITDA 32.7 45.4 63.6 40.5 EV 1369.0 1344.4 1354.2 1353.3
Depreciation 5.0 6.2 4.2 1.7 EV/Sales 15.4 12.8 11.0 19.3
EBIT 27.7 39.2 59.4 38.8 EV/EBITDA 41.8 29.6 21.3 33.4
Finance Costs 0.0 0.0 0.0 0.0 Profitability Ratios
Profit before Tax 27.7 39.2 59.4 38.8 RoE 14% 12% 18% 9%
Current tax (MAT) 12.0 20.6 37.4 17.0 RoCE 8% 11% 14% 9%
Deferred Tax 0.7 -1.4 -2.3 -0.4 Liquidity Ratios
Total tax expense 12.7 19.2 35.1 16.6 Interest Coverage Ratio 0.0 0.0 0.0 0.0
PROFIT AFTER TAX 49.0 41.7 40.8 39.7 Current Ratio 5.7 3.0 4.6 6.1
Exceptional Item 0.0 -1.7 -33.1 0.0
PROFIT AFTER TAX 49.0 43.4 73.9 39.7

31 March 31 March 31 March Half Yearly 31 March 31 March 31 March Half Yearly
2014 2015 2016 2017 2014 2015 2016 2017
Share Capital 104.5 104.5 104.5 104.5 Profit before exceptional items and taxation 61.6 62.6 109.0 56.3
Reserves 248.9 264.9 307.6 346.6 Adjustments for
Net Worth 353.4 369.4 412.1 451.1 Depreciation 5.0 6.2 4.2 1.7
Minority Interest 13.57 14.305 14.082 14.803 Provision for doubtful debts 0.2 1.3 1.1 0.0
Other Long-term Liabilities 21.8 22.3 23.0 22.9 Bad debts written off 3.2 1.8 1.5 0.0
Non - current liabilities 21.8 22.3 23.0 22.9 Provision /for Gratuity
Write backand Leave encashment
for diminution in 0.0 0.3 0.4 0.4
Trade payables 5.5 7.1 7.3 8.9 the value of 0.2 (0.2) 0.3 (0.3)
Other current liabilities 33.9 48.2 17.5 49.7 Less: Net gain on sale of current investments (20.7) (9.9) (0.1) (8.3)
Short-term provisions 27.6 31.0 39.7 10.1 Dividend from mutual funds (3.7) (2.7) (2.7) (2.6)
Current liabilities 67.0 86.2 64.5 68.7 Interest on fixed deposits (3.5) (4.4) (5.5) (2.4)
Total Liabilities 455.7 492.3 513.7 557.6 Interest on bonds (5.7) (4.2) (7.2) (3.9)
Tangible assets 6.6 5.1 3.0 4.5 OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES
Intangible assets 3.0 1.6 0.6 0.8 Trade Receivables (1.0) (3.8) (8.7) (5.5)
Non-current Investments 44.7 211.7 193.6 113.5 Short-term loans and advances 0.2 0.2 (0.3) (1.8)
Long-term loans and advances13.7 13.2 14.3 14.3 Trade payables 0.4 1.6 0.2 1.6
Deferred Tax Assets 3.9 5.4 7.7 8.1 Other long term liabilities 0.2 0.6 0.7 (0.1)
Non-current assets 71.9 237.0 219.3 141.1 Other current liabilities 14.1 14.0 (30.3) 31.8
Current investments 330.7 177.5 216.8 327.1 Short-term provisions 0.0 (0.0) 2.8 0.3
Trade receivables 6.2 6.9 13.0 18.5 CASH GENERATED FROM OPERATIONS 50.3 63.6 65.4 67.5
Cash and bank balances 41.0 65.6 55.8 56.7 Taxes paid 14.6 20.4 36.6 16.0
Short-term loans and advances2.2 2.0 2.4 4.2 NET CASH FLOW FROM OPERATING ACTIVITIES 35.7 43.1 28.8 51.5
Other current assets 3.5 3.2 6.4 9.9 NET CASH FLOW FROM / (USED IN) INVESTING ACTIVITIES
(13.4) (19.4) 0.3 (19.2)
Current assets 383.6 255.3 294.4 416.4 NET CASH FLOW USED IN FINANCING ACTIVITIES (23.5) (23.5) (27.7) (31.4)
TOTAL Assets 455.6 492.3 513.7 557.6 NET INCREASE / (DECREASE) IN CASH (1.1) 0.2 1.4 0.9
Cash beginning of the period 1.6 0.9 1.0 2.0
Cash end of the period 0.5 1.1 2.4 2.9

Narnolia Securities Ltd 4.0

 BUY
SUN PHARMACEUTICAL INDUSTRIES LTD
15th March 2017

Company Update Recently USFDA has informed Sunpharma that it will lift the Import Alert
CMP 706 imposed on the Mohali (Punjab) manufacturing facility and remove the
facility from the Official Action Initiated (OAI) status. This Mohali facility is a
Target Price 795
part of Ranbaxy Laboratories Ltd. and USFDA has imposed ban on this
Previous Target Price 16% facility in 2013.Lift of ban will clear the path for Sun Pharma to supply
Upside approved products from the Mohali facility to the US market, subject to
Change from Previous normal US FDA regulatory requirements.US formulations business
contributes about 46% of its total sales.And by his Ranbaxy integration will
gaining momentum and and will help the company to achieve its revenue
Market Data guidance of Rs. 2000 Cr in FY18.
BSE Code 524715
News Update
NSE Symbol SUNPHARMA
52wk Range H/L 876/572 Sun Pharma opens first production unit in Egypt, total investment of USD
Mkt Capital (Rs Cr) 170561 12.5 million was inaugurated on 21 feb 2017, signalling growing bussines
ties between India and the key Middle East nation.
Av. Volume(,000) 330019
Nifty 9,087 On 17 Feb 2017, Sun Pharma gets European Medicines Agency nod for
Tobramycin.

Stock Performance Sun Pharma recalls 2.7 lakh bottles of antidepressant in US.The tablets
1M 3M 12M have been manufactured by Sun Pharma at its Halol plant in India.
Absolute 4.3 1.6 -20.5 Sun Pharma recalls anti-depressant drug Bupropion Hydrochloride.The
Rel.to Nifty 2.7 -6.6 -39.2 recall is classified as class-III, which means the products are unlikely to
cause any adverse health reactions, but violate FDA labelling or
manufacturing rules.
Share Holding Pattern-% Sun Pharma to sell Ohm Labs site at New Jersey
3QFY17 2QFY17 1QFY17
Promoters 54.4 55.0 55.0 Outlook

Public 45.6 45.0 45.0 Synergies from the Ranbaxy acquisitions are gaining momentum and the
company is on track to achieve the targeted benefits. Lifting of import ban
Others 0.0 0.00 0.00
from Mohali facility will improve US revenue. Sunpharma has further
Total 100.0 100.0 100.0
strengthened the branded ophthalmic pipeline through the acquisition of
Company Vs NIFTY Ocular Technologies. Though the company has maintained its guidance of
130 SUNPHARMA NIFTY 8-10% sales growth for FY17E, we are optimistic for stronger and healthy
120 growth in longer term. Next big trigger for the company can be Halol plant
110 resolution.Considering above arguments we recommend BUY rating on
100 this stock with the target price of Rs. 795. We are analysing the financial
90 viewpoint of mohali plant and will update as and more clarity willl emerge.
80
70 Rs,Cr
60 Financials 2012 2013 2014 2015 2016
50
Sales 8019 11300 16080 27433 27219
40
EBITDA 3204 4896 7002 8064 7431
Net Profit 2657 2983 3141 4541 3665
EPS 26 29 15 22 18
Aditya Gupta ROE 22% 20% 17% 17% 12%
aditya.gupta@narnolia.com
Narnolia Securities Ltd 5
Please refer to the Disclaimers at the end of this Report
 Segmental Revenue

Latest Events
16 Dec 2016- The necessary formalities for closure of acquisition transaction have been concluded and we have successfully
completed the acquisition of Ocular Technologies.
12 dec 2016- Sun Pharma, Moebius Medical ink pact to develop pain management product.Moebius Medical will conduct requisite
pre-clinical studies and will assume responsibility for product development and manufacturing through the end of Phase-II studies,
as per the pact
7 Dec 2016- Company has undergone an inspection by USFDA recently and post that the health regulator issued a Form-483
observation letter For Halol Plant. The company is in the process of responding to the letter.

Financial Performance

EBITDA EBITDA Margins

50% 46% 46% 46% 3000

44% 44% 44% 44% 44% 44%
45% 41%
2500
40%
31% 33%
35% 31% 2000
27% 28% 27%
30% 26%
25% 1500
20% 14%
1000
15%
10%
1175

1551

2001

1801

2180

1850

2520

1873
1242

1275

1275

1843

1733

2165

1934

2169

1768

500
892

5%
0% 0
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17

About the Company

Sun Pharmaceuticals (SUNP) is one of the fastest growing companies in India as well as globally. It has a highly impressive track
record of organic and inorganic growth. Various US acquisitions augment SUNPs pipeline with differentiated products, and SUNP
has turned around business in a highly profitable manner Taro/ TDPL/ Natcos brands/ etc. It has one of the highest margins/
return ratios amongst global peers. In Apr 14, SUNP announced its biggest M&A deal ever Ranbaxy (RBXY). SUNP currently is
the second largest player in the domestic market, while the merged entity will become the largest player. Its API business footprint
is strengthened through 11 world class API manufacturing facilities across the globe. Sun Pharma fosters excellence through
innovation supported by strong R&D capabilities comprising about 1800 scientists and R&D investments of over 7% of annual
revenues.

Narnolia Securities Ltd 6

Please refer to the Disclaimers at the end of this Report
 Financials Snap Shot
INCOME STATEMENT RATIOS
FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16
Revenue 11300 16080 27433 27219 EPS 29 15 22 18
Other Income 388 552 452 459 Book Value 145 89 128 152
Total Revenue 11688 16633 27885 27678 DPS 5 3 2 2
COGS 2,073 2,779 6,739 6,483 Payout (incl. Div. Tax.) 17% 19% 8% 10%
GPM 18% 17% 25% 24% Valuation(x)
Other Expenses 2,796 4,225 8,201 8,508 P/E 14 38 47 58
EBITDA 4896 7002 8064 7431 Price / Book Value 3 6 8 7
EBITDA Margin (%) 43% 44% 29% 27% Dividend Yield (%) 1% 1% 0% 0%
Depreciation 336 409 1295 1014 Profitability Ratios
EBIT 4,560 6,592 6,769 6,417 RoE 20% 17% 17% 12%
Interest 43 44 579 477 RoCE 30% 35% 24% 19%
PBT 4,905 7,101 6,642 6,399 Turnover Ratios
Tax 846 702 915 935 Asset Turnover (x) 1 1 1 1
Tax Rate (%) 17% 10% 14% 15% Debtors (No. of Days) 78 50 71 91
Reported PAT 2983 3141 4541 3665 Inventory (No. of Days) 83 71 75 86
Dividend Paid 512 606 363 363 Creditors (No. of Days) 34 30 42 47
No. of Shares 104 207 207 207 Net Debt/Equity (x) 0.0 0.0 0.1 0.1

BALANCE SHEET CASH FLOW STATEMENT

FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16
Share Capital 104 207 207 241 OP/(Loss) before Tax 4,315 4,581 6,403 6,765
Reserves and surplus 14,886 18,318 26,252 31,164 Depreciation 336 409 1,195 1,014
Shareholders' funds 14,990 18,525 26,459 31,404 Direct Taxes Paid 1,073 789 1,740 1,988
Long term Debt 115 49 1,368 3,117 Operating profit before working
4,475
capital changes
4,541 7,101 8,492
Total Borrowings 198 2,489 7,596 8,338 CF from Op. Activity 3,357 3,959 5,322 6,769
Non Current liabilities 1,001 2,886 2,817 2,365 Purchase of Non Current investments
(15,672) (28,265) (28,802) (40,089)
Long term provisions 787 2,602 2,532 2,080 Capital expenditure on fixed assets
(845) including
(906)capital
(2,366)
advances(3,382)
and capital
Short term Provisions 1,482 1,961 3,336 3,417 CF from Inv. Activity (2,635) (2,367) (2,671) (4,455)
Current liabilities 2,758 3,549 9,256 8,026 Repayment of Long Term Borrowings
(111) (89) (6,662) (9,076)
Total liabilities 20,583 29,371 49,028 54,220 Interest Paid 38 23 251 300
Net Fixed Assets 5,077 5,824 11,020 13,361 Divd Paid (incl Tax) 512 606 363 869
Non Current Investments 1,106 788 599 593 CF from Fin. Activity (665) 507 (1,087) (1,924)
Other non Current assets 8 0 55 96 Inc/(Dec) in Cash 57 2,099 1,563 390
Current assets 11,503 18,686 29,122 30,865 Add: Opening Balance 2,013 2,260 4,479 7,729
Total Assets 20,583 29,371 49,028 54,220 Closing Balance 2,069 4,359 7,286 8,120

Narnolia Securities Ltd 7

Please refer to the Disclaimers at the end of this Report

 BUY
J.Kumar Infraprojects Limited 9-Mar-17

Result Update JKIL has a strong order book of Rs. 9680 Cr at the end of the Q3FY17. It
CMP 248 gives revenue visibilities for approx. 6.5 years (based on TTM revenue),
Target Price 330 which is positive for the company. Earlier we had a concern regarding
Previous Target Price 33% execution timeline of JNPT road projects, but recently we have received
clarification from the management and now we are in a position to make a
Upside
clear view. The unexecuted portion of JNPT road projects stands at Rs. 980
Change from Previous
Cr (equivalent to ~10% of Order Book) and we expect healthy execution in
FY18 as the utility shifting work will be completed in Q4FY17. Mumbai metro
Market Data projects are continue to be a growth driver for the JKIL and we expect around
BSE Code 532940 Rs. 1275 Cr of revenue from 3 Mumbai metro projects in FY18 and Rs. 1770
NSE Symbol JKIL Cr in FY19. However, we are still not clear on the higher level of debtors, but
52wk Range H/L 328/105 we dont think it will impact working capital in the bigger way. We will update
Mkt Capital (Rs Cr) 1,880 on the same as and when any clarity emerge.
Av. Volume 94368
Nifty 8927 Growth Driver:- Mumbai Metro projects
Mumbai metro projects are continue to be a growth driver for the JKIL for
Stock Performance next 3-4 years. The unexecuted work on all 3 Mumbai metro projects
1Month 3 Month 1Year contributes nearly 67% to current order book. All the initial ground work is
Absolute 7.4 33.0 -15.9 completed and we expect full swing in execution and management is
confident to complete significant portion of line 2A and 7 by FY19.We expect
Rel.to Nifty 5.6 24.8 -35.1
Rs. 1275 Cr of revenue from 3 Mumbai metro projects in FY18, around
Rs.1000 Cr revenue from line 3 only in FY19 and Rs.770 Cr of revenue from
Share Holding Pattern-% line 2A & 7 in FY19. This will not only support the better revenue growth but
3QFY17 2QFY17 1QFY17 also strengthen the operating margin as the metro projects have better
Promoters 44% 44% 43% margin compare to normal road projects.
Public 56% 56% 57%
Others 0% 0% 0% Strong Order Pipeline :-
Total 100% 100% 100%
Around Rs. 10000 Cr of new metro projects in state of Maharashtra will be
bided out in next 1-2 years. JKIL will bid for the Mumbai metro line 2B and 4,
Company Vs NIFTY total of 10 packages of 500 Cr each, tunnel work of Mumbai- Pune
150 JKIL NIFTY expressway, Mumbai- Nasik expressway, Vijayawada and Bangalore metro
130 projects. But JKIL will go slow in terms of new order acquisition in order to
110 focus on execution.
90
Q3FY17 Result Highlights:-
70
JKIL reported robust revenue growth of ~19% YoY to Rs.369 Cr as against
50
Rs.310 Cr on account of work commencement on Mumbai metro projects.
30
10
EBITDA has clocked 10.8% of growth to Rs.63 Cr as against Rs.57 Cr in
corresponding period last year led by higher revenue growth.
Profit after Tax has grew by 10.8% to Rs. 27 Cr as against Rs. 24 Cr.
Sandip Jabuani Order book as on 31st Dec 2017 stands at Rs. 9700 Cr out of this 6850 Cr
sandip.jabuani@narnolia.com in metro ( including Delhi metro project).
Narnolia Securities Ltd 8
Please refer to the Disclaimers at the end of this Report
 Mangment/ Concall Highlights:-

Will Maintain top line of 1600 Cr in FY17 and Rs. 2000 Cr in FY18
Employee expense has gone during the quarter as the JKIL has started metro project in big way and full fledge revenue yet to
come
Preliminary work has completed on Mumbai metro project and work is in full swing
Debtors of 563 Cr at the end of the Q3FY17, but has come down to 440 Cr in Feb
Inventory at the end of Q3FY17: - 106 Cr of RM, 280 Cr of WIP
Protest by localized people against tree cutting but its awarding authority concern and it will not hamper execution.
Advances of 125 Cr has taken from line 3 & 7 and in month time advances will receive from line 2A
Payment cycle for Mumbai metro project is 45 days from date of bill raised
No significant revenue during the Q3FY17 from JNPT project due to utility work is going on
Mgt. expects 200-250 Cr of revenue from Mumbai metro, 200 Cr from other road and flyover projects
Pending work on Delhi metro is tune of 250 Cr at the end of the Q3FY17
Unexecuted portion of JNPT road project is 1050 Cr
Utility revenue of 30 Cr was booked from JNPT road project in Q3FY17
480 Cr of Debt as on 31st Dec 2016
FY18 Top line :- 1300-1400 Cr from Mumbai metro, 400 Cr from JNPT, 200 cr from others
Will maintain 17-18% EBITDA margin going forward
Debt FY17:- 350-400 Cr, FY18 :- 500-550 Cr
Current Working capital days is 174 and expect to bring down to 160 days
1000 Cr of revenue from Line 3, 700-800 Cr of revenue from line 2A &7 in FY19

View and Valuation::-

JKIL is the one of the best EPC Company with lower Debt to equity. Strong order book and execution of Mumbai metro projects
boosted revenue in Q3FY17and we expect it to continue. Earlier we had a concern related to execution of JNPT road project but
now we have received clarification from management and we expect healthy execution from JNPT projects in FY18 as the utility
shifting work will complete in Q4FY17. However, still we do not have clear view on higher level of debtors but we believe it will not
affect working capital in bigger way. We expect 9%, 20% and 27% revenue growth in FY17, FY18 & FY19 respectively based on
the strong order book and Mumbai metro projects. So considering the clarification on JNPT road projects and strong revenue
growth going forward, we recommend BUY on the stock with unchanged target price of Rs.330.

Mumbai Metro Projects Details

Metro projects Lenghts(Km) Value Strech Execution Period Type Agency Agency
Line 2A 18.6 1350 Dahisar to DN Nagar 30 Months Elevated DMRC
Line 3 9.2 5001 Dharavi - International Airport 54 Months Underground MMRD
Line 7 5.9 360 Andheri (E) - Dahisar (E) 30 Months Elevated MMRD

Narnolia Securities Ltd 9

Please refer to the Disclaimers at the end of this Report

 About the Company :-

J. Kumar Infraprojects Limited is engaged in construction activities. The Company designs and constructs roads, bridges, flyovers,
subways, over bridges, skywalks and railway terminus/stations, among others. The Company's offerings in civil construction
segment include office/commercial buildings, sports complexes and swimming pools. In Irrigation Projects segment, the Company
builds dams, canals, aqueducts and irrigation tanks, and spillways. The Company has approximately 20 hydraulic piling rigs, which
are used to build pile foundations for buildings and flyovers, marine structures and offshore platforms. Its Piling segment caters to
various real estate and infrastructure companies. The Company's projects include Underground Metro CC-24, Delhi Metro Tunnel,
Ahmedabad Metro, Balewadi Bridge and Dhankawadi Flyover. Its other projects include Kapurbawadi Flyover, Kherwadi Flyover,
Amarmahal Flyover, Amarmahal Flyover, Thakur Flyover, Bhivandi Flyover and Aurangabad Flyover.

JKIL

Transporation Eng. Civil Construction Irrigation Others

Roads Terminus/Stations Earthen Dams Micro Pillings

Flyover Buildings Minor Irrigation Tank Micro Tunneling
Bridges Sports Complexes Spillways Ready Mix Concrete
Skywalk Swiming Pools Canals
GradeSeparator Aqueducts
Pedstrain Subways
ROBs/RUBs
Strom water drainage

Key Clinets

Vidharbh Irrigation
DMRC,MEGA, UPRNN, MCX, Development,
PWDs, Indian Pimpari Irrigation HCC,HDIL, Punj
MSRDC, MMRD, M
railway Division, Bambla Lloyd, JSW, LANCO
CMG
Canal Division

Narnolia Securities Ltd 10

Please refer to the Disclaimers at the end of this Report

Quartely Performance 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY% QoQ%
Net Sales 296 297 393 355 322 299 390 391 303 363 21% 20%
Other Operating Income 5 7 10 9 9 11 13 13 7 6 -41% -2%
Net Sales 300 303 403 364 331 310 404 403 310 369 19% 19%
Change in Invenotry 5 17 7 26 18 12 (1) 32 6 23 1 3
RM Cost 169 156 240 218 196 171 247 246 190 220 28% 16%
COGS 173 173 246 244 215 183 247 279 195 243 33% 24%
Employee Expenses 17 18 23 17 18 21 24 19 22 31 49% 38%
Other Expenses 26 27 40 20 21 33 44 21 23 20 -39% -13%
Labour Exp 22 26 26 16 17 16 26 17 13 12 -25% -6%
Total Expenditure 238 244 335 296 271 253 341 335 253 306 21% 21%
EBITDA 62 60 68 67 60 57 63 68 56 63 11% 12%
Depreciation 12 12 13 12 13 13 13 13 13 14 12% 8%
EBIT 50 47 55 55 47 44 50 55 43 49 11% 13%
Intreset 18 18 23 19 16 13 14 18 17 15 21% -11%
PBT 35 31 38 38 34 34 45 43 32 40 15% 25%
Tax 15 7 10 12 12 11 16 13 9 13 24% 49%
PAT 20 24 27 26 22 24 29 30 23 27 11% 15%

Margin Profile 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY (+/-) QoQ (+/-)
Gross Margin 42.3% 43.0% 38.8% 33.0% 35.1% 40.9% 38.9% 30.9% 37.0% 34.2% (670 bps) (280 bps)
EBIDTA 20.8% 19.7% 16.9% 18.5% 18.1% 18.3% 15.7% 16.9% 18.2% 17.1% (120 bps) (110 bps)
EBIT 16.7% 15.6% 13.7% 15.1% 14.3% 14.2% 12.4% 13.6% 13.9% 13.2% (100 bps) (70 bps)
PAT 6.7% 7.9% 6.8% 7.1% 6.6% 7.7% 7.1% 7.3% 7.4% 7.2% (50 bps) (20 bps)

Growth YoY
Sales Growth 27% 11% -11% 8% 10% 2% 0% 11% -6% 19%
EBIDTA Growth 45% 19% -7% 11% -4% -5% -7% 1% -6% 11%
EBIT Growth 44% 14% -10% 9% -6% -7% -9% 0% -9% 11%
PAT Growth 15% 21% -13% 13% 8% 0% 5% 14% 5% 11%

Operating Matrix FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 YoY% Q3FY16 Q3FY17 YoY%
Opening Order Book 737 1219 1480 1266 2512 3661 3122 3024 -3% 3658 10000 173%
Revenue Booking 365 723 878 879 955 1146 1285 1328 3% 310 369 19%
Order Intake 847 984 664 2125 2104 607 1187 1518 28% 32 0 -100%
Closing Order Book 1219 1480 1266 2512 3661 3122 3024 3214 6% 3380 9700 187%

Strong revenue growth of 19% in Q3FY17 was on account of work commencement on Mumbai metro projects.
JKIL will slow and selective in terms of new order intake in order to focus on execution. Management has guided for Rs.2000 Cr
of new order inflow for the next year to maintain 10000 Cr + order book.

We anticipate healthy operating margin in range of 16-18%, margin depend on revenue mix (tunnel work has better margin comparatively)

Narnolia Securities Ltd 11

Please refer to the Disclaimers at the end of this Report

Robust Order book :-

Order Book Growth %

JKIL will go slow in terms

10,000

9,700
12000 2.5

8,646
10000 2 of new order intake to
8000 1.5 focus more on execution.
Avg. order intake will be in

3658.3
6000 1

3,380
2915.4

3,214
3198
3100

3024
4000 0.5 range of Rs.2000 Cr in
2000 0
order to maintain 10000
0 -0.5
Cr plus Order book

Quarterly Sales Trend :-

Sales Growth %

450 30%
393 390 391
400 355 369 25%
350 322 20%
296 297 299 303
300 15%
250 10%
200 5% Mumbai metro
150 0% projects will drive the
100 -5%
50 -10%
revenue growth going
- -15% ahead

Order Book Break up:-

Line 3

Line2 A

1,506 Line 7

449 Delhi Metro

324
NH-348 and Amra Marg
372 (JNPT Road )
4,852
Gavanphata interchange
284 (JNPT Road)
Karalphata interchange
254
(JNPT Road)
338 Kurla to Vakola flyover
1,301
Others

Healthy Debt to Equity position with strong Intreset covarge ratio:-

D/E Intreset Coverage Ratio

4.00
3.58 3.52
3.50 3.23
2.97
3.00 2.65
2.50 D/E will remain strong
2.00 in range of 0.25 to 0.38
1.50
1.00 0.80
0.55
0.33 0.42
0.50 0.25
-
FY12 FY13 FY14 FY15 FY16

Narnolia Securities Ltd 12

Please refer to the Disclaimers at the end of this Report

 Financials Snap Shot
INCOME STATEMENT RATIOS
FY16 FY17E FY18E FY19E FY16 FY17E FY18E FY19E
Revenue 1409 1537 1866 2372 EPS 14 15 17 25
Other Income 18 29 23 23 Book Value 170 182 195 216
Total Revenue 1426 1566 1889 2395 DPS 2.0 2.2 2.4 3.6
EBITDA 248 267 341 438 Payout (incl. Div. Tax.) 15% 15% 15% 15%
EBITDA Margin (%) 18% 17% 18% 18% Valuation(x)
Depreciation 51 60 89 85 P/E 20.2 20.1 21.5 18.6
EBIT 197 207 252 353 Price / Book Value 1.6 1.6 1.8 2.1
Interest 61 69 88 99 Dividend Yield 1% 1% 1% 1%
PBT 154 167 187 276 Profitability Ratios
Tax 51 55 62 91 RoE 8% 8% 8% 11%
Tax Rate (%) 33% 33% 33% 33% RoCE 12% 12% 12% 16%
Reported PAT 103 112 125 185 Turnover Ratios
Dividend Paid 15 16 18 27 Asset Turnover (x) 0.7 0.7 0.8 0.9
No. of Shares 8 8 8 8 Debtors (No. of Days) 77 102 102 102
Inventory (No. of Days) 126 100 100 100
Creditors (No. of Days) 30 30 30 30
Net Debt/Equity (x) 0.25 0.29 0.37 0.38

BALANCE SHEET CASH FLOW

FY16 FY17E FY18E FY19E FY16 FY17E FY18E FY19E
Share Capital 38 38 38 38 OP/(Loss) before Tax 154 167 187 276
Reserves 1245 1338 1441 1594 Depreciation 51 60 89 85
Net Worth 1283 1376 1479 1632 Direct Taxes Paid 43 55 62 91
Long term Debt 29 13 73 73 Op. befor WC Change 249 267 341 438
Short term Debt 294 380 470 550 CF from Op. Activity 64 164 141 161
Deferred Tax 17 17 17 17 Non Current investments 0 0 0 0
Total Capital Employed 1312 1389 1552 1705 Capex 55 75 300 60
Net Fixed Assets 497 512 724 698 CF from Inv. Activity (226) (122) (252) (38)
Capital WIP 68 68 68 68 Repayment of LTB (75) (16) 60 0
Debtors 296 430 522 664 Interest Paid 61 69 88 99
Cash & Bank Balances 174 185 116 113 Divd Paid (incl Tax) 16 20 22 33
Trade payables 114 124 151 192 CF from Fin. Activity 171 (18) 40 (52)
Total Provisions 25 25 29 63 Inc/(Dec) in Cash 9 23 (71) 71
Net Current Assets 762 827 896 1079 Add: Opening Balance 20 174 185 116
Total Assets 1965 2144 2477 2783 Closing Balance 29 197 114 187

Narnolia Securities Ltd 13

Please refer to the Disclaimers at the end of this Report

 Part Book Profit
RELIANCE INDUSTRIES LTD 9-Mar-17

Company Update Reliance Jio is well positioned to achieve more than 40% market share and
CMP 1288 caters to 85% of mobile data traffic in India today. As per the Jios
management estimates, EBITDA margin for Jio in FY18 will be more than
Target Price 1408
50%. Recently Jio has announced booster packages starting from Rs 11
Previous Target Price 1280 going up to Rs 301 to provide additional data to its users. Telecom sector is
Upside 9% rapidly shifting towards VOLTE technology after the launch of Jio. It is
Change from Previous 10% estimated that Data market in India will be Rs 3 lakh Cr. by 2020-21. On the
Petro-chemicals front, Reliance has commissioned the first phase of new
Paraxylene(PX) project at Jamnagar in Q3FY17 and with the
Market Data commissioning of this plant, PX capacity will be more than double from 2.0
BSE Code 500325 to 4.2 MTPA. Further management has guided for re-opening of its 1400
NSE Symbol RELIANCE retail outlets by March 2017, which will boost the revenue of petrochemicals
52wk Range H/L segment.
1327/925
Mkt Capital (Rs Cr) 423274 Outlook
Av. Volume(,000) 1253 Today LTE enabled handsets are increasing at the rate of 8-9 mn/month.
Nifty 8924 With its attractive plans and Only operator with pan-India sub-GHz LTE
spectrum, Jio is ready to en-cash this market opportunity. We expect ROE
of 11% in FY17E. Reliance has rallied smartly recently and has crossed our
Stock Performance price target of Rs 1280. Short term investor may book profit at current
1M 3M 12M levels. But for long term investors we raise out 18 months target to Rs 1408
Absolute 26.6 30.3 32.2
Rel.to Nifty 24.6 8.9 23.3 Corporate Highlights For The Quarter
Gross Refining Margin (GRM) of USD 10.8/bbl for the quarter
Share Holding Pattern-% In December 2016, RIL commissioned the first phase of new Paraxylene
3QFY17 2QFY17 1QFY17 project at Jamnagar
Promoters 46.5 46.7 46.7 Outstanding debt as on 31st December 2016 was Rs.194,381 cr
Public 53.5 53.3 53.3 compared to Rs. 180388 cr as on 31st March 2016.
Others 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
Company Vs NIFTY average exchange rate for the quarter.
140 RELIANCE NIFTY Reliance has operated 1,151 petroleum retail outlets in the country in
130
3QFY17.

120 Exports from India operations were higher by 4.0% at Rs. 38,038 crore
110 Rs,Cr
100
Financials 2012 2013 2014 2015 2016

90
Sales 358501 397062 434460 375435 276544
EBITDA 34508 33045 34799 37364 44257
80
Net Profit 19724 20879 22493 23566 27630
Jul-16
Feb-16

Sep-16

Feb-17
Jan-17
Dec-16
Jun-16

Aug-16
May-16

Oct-16
Nov-16
Apr-16
Mar-16

EPS 60 65 70 73 85
Aditya Gupta P/E 12.4 12.0 13.4 11.3 12.3
aditya.gupta@narnolia.com
Narnolia Securities Ltd 14
Please refer to the Disclaimers at the end of this Report
 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:

3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
GRM($/bbl) 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
Singapore GRM 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
Premium 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
Exchange rate 62 62 62 62 62 62 62 62 62 62 62 62 62
GRM(Rs/bbl) 472 472 472 472 472 472 472 472 472 472 472 472 472
Crude Refined(MT) 17 17 17 17 17 17 17 17 17 17 17 17 17
Crude Oil Price(USD/bbl) 111 111 111 111 111 111 111 111 111 111 111 111 111
Crude Revenue(Rs Cr/MMT) 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
Trend of Crude revenue 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
Narnolia Securities Ltd 15
Please refer to the Disclaimers at the end of this Report
 Refining Business
2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Refining Revenue 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
Refining EBIT 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
Refining EBIT Margin 3% 3% 4% 4% 4% 4% 9% 8% 9% 11% 13% 12% 10% 10%
Petrochemicals

2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Petrochemicals Revenue 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
Petrochemicals EBIT 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
Petrochemicals EBIT Margin 9% 8% 8% 7% 9% 9% 9% 11% 12% 14% 13% 14% 15% 14%
Exploration & Production

2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Oil and Gas Revenue 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
Oil and Gas EBIT 956 607 762 1,042 818 832 489 32 242 90 14 (312) (491) (295)
Oil and Gas EBIT Margin 36% 21% 27% 33% 27% 29% 19% 2% 12% 5% 1% -23% -37% -24%
Retail

2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Organized Retail Revenue 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
Organized Retail EBIT 70 38 24 81 99 133 104 111 117 147 131 148 162 231
Organized Retail EBIT Margin 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.

Narnolia Securities Ltd 16

Please refer to the Disclaimers at the end of this Report
 Financials Snap Shot
INCOME STATEMENT RATIOS
FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16
Revenue (Net of Excise Duty)
397062 434460 375435 276544 EPS 65 70 73 85
Other Income 7867 9001 8613 7612 Book Value 564 615 675 752
Total Revenue 404929 443461 384048 284156 DPS 9 10 10 12
COGS 332250 363022 294046 189054 Payout (incl. Div. Tax.) 14% 14% 14% 14%
GPM 84% 84% 78% 68% Valuation(x)
Other Expenses 26588 31067 37763 35509 P/E 12 13 11 12
EBITDA 33045 34799 37364 44257 Price / Book Value 1.4 1.5 1.2 1.4
EBITDA Margin (%) 8% 8% 10% 16% Dividend Yield (%) 1% 1% 1% 1%
Depreciation 11232 11201 11547 12916 Profitability Ratios
EBIT 21813 23598 25817 31341 RoE 11% 11% 11% 11%
Interest 3463 3836 3316 3608 RoCE 9% 8% 8% 8%
PBT 26217 28763 31114 35345 Turnover Ratios
Tax 5331 6215 7474 8264 Asset Turnover (x) 1.1 1.0 0.7 0.5
Tax Rate (%) 20% 22% 24% 23% Debtors (No. of Days) 9 8 5 6
Reported PAT 20879 22493 23566 27630 Inventory (No. of Days) 50 48 52 62
Dividend Paid 2949 3123 3268 3791 Creditors (No. of Days) 46 51 58 81
No. of Shares 323 323 324 324 Net Debt/Equity (x) 0.4 0.5 0.6 0.6

BALANCE SHEET CASH FLOW STATEMENT

FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16
Share Capital 2936 2940 2943 2948 OP/(Loss) before Tax 26217 28763 31114 35345
Reserves and surplus 179094 195730 215539 240695 Depreciation 13393 11201 11547 12916
Shareholders' funds 182030 198670 218482 243643 Direct Taxes Paid 4824 6213 6435 8264
Long term Debt 70960 101016 120777 142000 Operating profit before WCchanges
34373 38444 38994 52000
Total Borrowings 89322 133808 148742 165954 CF from Op. Activity 36918 43261 34374 104743
Non Current liabilities 12119 13025 23619 31439 Movement in Loans& Advances -2610 -426 -232 1917
Long term provisions 531 290 1554 1869 Capex -30726 -60087 -63364 -101199
Short term Provisions 4557 4446 5392 1636 CF from Inv. Activity -27650 -73070 -64898 -99282
Current liabilities 77912 82364 110588 161916 Repayment of LTB 19182 28215 29413 21223
Total liabilities 362357 428843 504486 606214 Interest Paid -4626 -5619 -6149 -3316
Net Fixed Assets 183439 232911 318523 419722 Divd Paid (incl Tax) -2949 -3123 -3268 -3790.9
Non Current Investments 13979 26867 25437 37005 CF from Fin. Activity 408 13713 8444 10105.1
Current investments 28869 33735 51014 39928 Inc/(Dec) in Cash 9676 -16096 -22080 15566.1
Current assets 155914 151069 136577 126587 Add: Opening Balance 40780 50456 34552 12545
Total Assets 362357 428843 504486 606214 Closing Balance 50456 34360 12472 28111.1

Narnolia Securities Ltd 17

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

 "SUBSCRIBE "
AVENUE SUPERMARTS LIMITED
8th Mar 2017

IPO Note
Issue Detail Company Overview
Type 100% Book Building Avenue Supermarts ( ASL ) operates stores under D-Mart brand, which is an emerging national
Issue Size Rs.1865 Crore supermarket chain. Company offer a wide range of products with a focus on the Foods, Non-Foods
Offer Price *Rs (295 - 299)/Equity Share (FMCG) and General Merchandise & Apparel product categories.
DMart opened its first store in Mumbai in 2002 and has since expanded its retail network to 118
Min App Size 50 Shares
stores as of January 31, 2017 with a retail footprint of 3.59mn sqft across 45 cities and 9 states and
Issue Open 8-Mar-17 one Union Territory. Company plan to deepen store network in southern and western India and
Issue Close 10-Mar-17 gradually expand network in other parts of India pursuant to cluster-focused expansion strategy.
Shares Offer 6.23Cr
Face Value Rs 10 For Fiscal 2016, Maharastra contributed a majority of Revenue from Sales (62.57%) followed by
Axis Capital Ltd, Edelweiss Gujarat (18.83%), Telangana (10.15%), Karnataka (6.14%) Andhra Pradesh (1.03%), Madhya Pradesh
Lead Mgrs (0.85%) and Chattisgarh (0.43%).
Capital Ltd, HDFC Bank Ltd
Listing BSE, NSE Company operate predominantly on an ownership model rather than on a rental model. Company
Registrar Karvy Computershare Pvt Ltd open new stores using a cluster approach on the basis of adjacencies and focusing on an efficient
supply chain, targeting densely-populated residential areas with a majority of lower-middle, middle
Market Cap
18655.7 and aspiring upper-middle class consumers
(Post Issue)

No of shares ( Post & Pre Issue) Company Strategies

No of Shares (Pre Issue) 561,542,680 > Company has benefitted from in-depth understanding of local needs and ability to respond
quickly to changing consumer preferences. This has been achieved in part due to our advanced IT
Offer for Sale
systems
Fresh Issue made 62393631 > Company business is consumer-driven . The strong promoter background and an experienced
senior management team have helped to offer high standards of customer service and a pleasant
No of Shares (Post Issue) 623936311
shopping experience at stores
> Company has a wide network of vendors and suppliers across the country. The companys
Bid allocation pattern sustained efforts to improve its strong supplier network, has led to an efficient supply and sale
QIB 50% cycle. The stores are supported by an appropriate combination of supplies from its distribution
Non-Institutional 15% centres located within a specified distance . ASL has 22 delivery centres and six packing centres,
Retail 35% which streamline and consolidate administrative and logistics functions.

> Company operates on an ownership model rather than on a rental model resulting in minimising
rental costs. It generally enters into a long term lease arrangements, where the lease period is
usually more than 30 years and the building is owned by the company.
Objects of the Issue:
Particulars Amount
Repayment or prepayment of a portion of loans and redemption or
earlier redemption of NCDs availed by the Company Rs. 1080 Cr.

Construction and purchase of fit outs for new stores Rs 366 Cr

General corporate purposes

Recommendation
D-Mart has NPM of 4.4% for FY17E which will further increase after debt repayment out of IPO proceeds. With ROE of 20 and P/B of 8.5
times FY17E , The company is cheaply valued compared to its listed peers. None of the other listed supermarket/ retailers are having such
light Balance sheet with better Net Profit margins. D Mart has a well executed Business Model and is attractively placed in Retailing where
the story in India is sustainable growth for longer term. We recommended SUBSCRIBE

Narnolia Securities Ltd, 18

Please refer to the Disclaimers at the end of this Report.
 AVENUE SUPERMARTS LIMITED

Company Presence In India

Competitive Risks
> One of the key strengths has been ASLs ability to offer its customers value retailing, daily low prices and,
consequently, greater daily savings. Company is unable to continue to offer daily low prices pursuant to EDLC/EDLP
pricing strategy, company risk losing distinct advantage and a substantial portion of customers which will adversely
affect business, financial condition and results of operations. Further, in case of shortages, suppliers may increase
prices of products beyond control due to which company may lose competitive advantage.

> The company currently function on a low inventory level model . It typically maintains inventory levels that are
sufficient for a few days of operation.Company has inability to maintain an optimal level of inventory in stores may
impact operations adversely.
> For the nine months period ended December 31, 2016, Maharashtra and Gujarat together contributed 76.9% of
total revenue. Furthermore, as of January 31, 2017, 19 out of 22 distribution centres are located in Maharashtra
and Gujarat. Any adverse development that affects the performance of the stores or distribution centres in these
two states could have a material adverse effect on the business, financial condition and results of operations.

> Company has inability to promptly identify changing consumer preferences. Customer preferences in the markets
where the company operates are difficult to predict while changes in those preferences or the introduction of new
products by competitors could put its products at a competitive disadvantage.

Narnolia Securities Ltd, 19

Please refer to the Disclaimers at the end of this Report.
 AVENUE SUPERMARTS LIMITED

Financials Snap Shot

INCOME STATEMENT RATIOS
31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March
2013 2014 2015 2016 2013 2014 2015 2016
Revenue (Net) 3,340.9 4,686.5 6,439.4 8,588.1 EPS 1.5 2.6 3.4 5.1
Other Income 14.3 15.8 18.3 18.0 Book Value Per share 12.7 15.3 19.2 24.4
Total Revenue 3,355.1 4,702.3 6,457.7 8,606.1 Valuation(x)
Purchase of stock-in-trade 2,937.9 4,086.5 5,648.5 7,439.9 P/E ( Upper Band ) 198.8 115.4 87.7 58.1
Changes in inventory stock in trade -80.5 -102.1 -161.3 -132.1 P/E ( Lower Band ) 196.2 113.9 86.5 57.3
Other Operational Costs 127.4 181.1 233.4 308.6 Price / Book Value 23.6 19.5 15.5 12.3
Employee Benefits Expense 68.7 87.3 134.1 148.6 EV 19026.9 19111.1 19374.4 19658.1
Other expenses 72.3 91.9 125.8 159.6 EV/Sales 5.7 4.1 3.0 2.3
Total Expenses 3,125.8 4,344.7 5,980.4 7,924.6 EV/EBITDA 88.5 55.9 42.2 29.6
EBITDA 215.0 341.8 459.0 663.5 Profitability Ratios
Depreciation 45.8 57.0 81.5 98.4 RoE 12% 17% 18% 21%
EBIT 169.2 284.8 377.5 565.1 RoCE 18% 26% 27% 32%
Finance Costs 42.6 55.7 72.4 90.8 Liquidity Ratios
Profit before Tax 140.9 244.9 323.3 492.2 Net Debt/Equity 0.470 0.478 0.595 0.598
Current tax (MAT) 40.2 77.1 106.5 162.1 Interest Coverage Ratio 4.0 5.1 5.2 6.2
MAT credit entitlement 7.0 6.4 4.4 9.4 Current Ratio 1.28 1.37 1.60 1.28
Total tax expense 47.2 83.5 110.9 171.5
Exceptional Item 0.0 0.0 0.0 0.0
PROFIT AFTER TAX 93.7 161.4 212.4 320.7
31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March
2013 2014 2015 2016 2013 2014 2015 2016
Share Capital 544.1 546.8 561.5 561.5 Net Profit/(loss) before tax 141.1 244.9 322.6 492.9
Reserves 245.5 408.8 637.7 958.9 Adjustments for:
Minority Interest 0.3 0.0 0.1 0.1 Depreciation and Amortisation 45.8 57.0 81.5 98.4
Net Worth 789.5 955.6 1199.2 1520.4 Finance Costs 42.6 55.7 72.4 90.8
Long-term borrowings 371.2 456.8 713.8 908.5 Loss on sale/discardment of fixed assets 0.5 0.6 1.4 0.8
Deferred tax liabilities 20.1 26.5 30.5 39.9 Expenses on increase of share capital/ ESOP0.0 0.1 0.1 0.0
Other long term liabilities 13.4 12.4 16.1 16.2 Provisions no longer required written back(0.4) (0.3) (0.2) 0.0
Long-term provisions 0.0 0.1 0.1 0.2 Sundry Balances written off 0.7 0.1 0.0 0.0
Non - current liabilities 404.7 495.9 760.5 964.7 Interest Income (0.3) (1.1) (0.5) (0.6)
Short-term borrowings 62.4 54.7 43.7 129.7 Profit on Sale of Current Investments (0.9) (1.0) (3.4) (2.5)
Trade payables 94.4 122.6 118.5 191.8 Operating Profit/ (Loss) before Working229.1
Capital Changes
355.9 474.0 679.9
Other current liabilities 134.6 170.1 215.0 277.0 Adjusted for:
Short-term provisions 6.2 8.8 17.8 16.5 Trade Payables 29.7 28.4 (3.9) 73.3
Current liabilities 297.5 356.2 395.0 615.0 Provisions (0.0) 0.2 1.7 1.3
Total Liabilities 1491.8 1807.6 2354.8 3100.1 Other Current Liabilities 4.3 6.6 10.9 22.6
Tangible assets 921.6 1168.1 1524.1 2089.2 Other long term Liabilities 2.0 (0.9) 3.6 0.1
Intangible assets 3.1 3.6 4.0 4.3 Trade Receivables (7.7) 3.7 2.5 (1.3)
Capital work-in-progress 118.1 88.8 98.1 81.7 Inventory (80.5) (102.1) (161.3) (132.1)
Non Current Investments 16.0 15.2 14.8 27.8 Loans and Advances (13.3) (18.5) (5.4) (32.1)
Long-term loans and advances 52.6 42.6 80.2 107.4 other current assets 0.0 (0.2) 0.1 (0.3)
Non-current assets 1111.4 1318.3 1721.1 2310.3 other non-current assets (0.0) 0.0 (0.2) (0.1)
Current investments 0.0 0.3 0.7 1.9 Cash generated from/ (used in) operations163.8 273.2 322.0 611.3
Inventories 276.2 378.3 539.6 671.7 Taxes paid 36.7 75.0 100.0 164.1
Trade receivables 13.3 9.5 7.1 8.4 Net cash generated from/ (used in) Operating
127.1 Activities
198.1 222.0 447.1
Cash and bank balances 61.6 55.4 38.0 35.1 Cash Flow from Investing Activities: (230.9) (270.2) (473.9) (658.3)
Short-term loans and advances 29.5 45.5 48.1 72.4 Net Cash in Financing Activities 117.5 65.2 234.5 208.2
Other current assets 0.1 0.3 0.2 0.4 Cash and Cash equivalents 13.7 (6.8) (17.4) (3.0)
Current assets 380.7 489.3 633.7 789.9 Cash and cash equivalents 47.7 61.4 54.6 37.2
TOTAL Assets 1492.1 1807.6 2354.8 3100.2 Cash and cash equivalents (Closing Balance)
61.4 54.6 37.2 34.2
Narnolia Securities Ltd 20
 BUY
DEWAN HOUSING FINANCE CORPORATION LTD. 7-Mar-17

Result Update Stake Sale deal will Significantly Contribute to Net Worth
CMP 324 Recently DHFL announced an agreement with its promoter to sell its 100% of
Target Price 385 share held in DHFL Pramerica Life Insurance (DPLI) (equivalent to 50% of
the paid-up capital of DPLI) to its wholly owned subsidiary DHFL Investment
Previous Target Price
Ltd (DIL). The fair market value for the shares proposed to be transferred is
Upside 19% ascertained in the range of Rs 1690 Cr to Rs 2020 Cr. To fund this
Change from Previous transaction, DIL will issue compulsorily convertible debentures (CCDs) to the
promoters entity (Wadhawan Global Capital). However this deal awaits for
the regulatory approval. If the deal is approved, it will significantly contribute
Market Data
to Capital of DHFL without any dilution with minimum increase of 25% in its
BSE Code 511072 net worth and hence company will not require capital for next 2 to 3 years.
NSE Symbol
DHFL
52wk Range H/L 339/163
3Q FY17 Result Highlight
Mkt Capital (Rs Cr) 10159
Av. Volume (,000) 281 DHFL posted 3Q FY17 PAT at Rs 244 Cr up 31% YoY owing to better NIMs
Nifty 8961 which improved by 11 bps YoY and was stable QoQ. NII growth was strong
at 21% YoY. Operating expenses were under control and grew by just 9%
YoY. C/I ratio improved to 26.5% against 29.5% a year back. AUM grew by
Stock Performance
19% YoY despite the challenging times during demonetization. Disbursement
1Month 1Year YTD
was muted to 10% growth YoY, however considering demonetization impact
Absolute 9.4 111.2 29.9 we had anticipated it even lower. Assets quality was stable with GNPA at 95
Rel.to Nifty 7.6 83.9 21.1 bps sequentially.

AUM Growth Impressive Despite Demonetization, Assets Quality Stable.

Share Holding Pattern-%
3QFY17 2QFY17 1QFY17 AUM of DHFL grew with healthy rate of 19% YoY despite the demonetization.
Promoters 39.3 39.3 34.9 This strong growth was mainly contributed by project loan which grew by 85%
YoY while Core home loan book grew by 11% YoY. The share of project loan
Public 60.7 60.7 65.1
in total portfolio increased to 12.5% against 8% a year back. Disbursements
Others - - -
grew by 10% YoY in 3Q FY17 despite demonetization. The management
Total 100 100 100 highlighted that the disbursements were down 12% MoM in November 2016
but recovered to pre-demonetization levels in December 2016. Management
Company Vs NIFTY is confident of continuing the same growth level going forward. Assets quality
200 was stable with GNPA at 95 Bps and provision coverage ratio at 101.5%
DHFL NIFTY
which resulted in almost nil NNPA.
180
Improving Margins and Cost Efficiency.
160
NIM of DHFL improved by 11 bps YoY to 3.06% backed by decline in cost of
140
fund by 50 bps. Change in liability mix with reduction in bank rate has
120 supported this decline in cost of fund.
100 Operating Expenses grew by 9% YoY led lower other expenses. Employee
expenses grew by 18% YoY. Thus the C/I ratio improved to 26.5% against
80
29.5% a year back. This decline in cost to income ratio has helped the
Dec-16
Jun-16

Oct-16
Nov-16
Jul-16
Apr-16
Feb-16

Sep-16

Feb-17
Mar-16

Jan-17
Aug-16
May-16

company to achieve the pre-provisioning profit of 27% YoY. C/I Ratio at

26.5% is still very high from its industry peers, so a lot of scope to improve
DEEPAK KUMAR further.
Deepak.kumar@narnolia.com
Narnolia Securities Ltd 21
Please refer to the Disclaimers at the end of this Report
 DHFL

Concall Highlights

>> Management is confident to protect the NIM going forward.

>> Project loan will continue to grow going forward. Share of project financing is expected to increase to 14-15%
over the next few quarters due to the strong pipeline.
>> Targeting the C/I ratio at 21%.
>> Collection dropped to 12% in the month of November. Collection for December month was as per pre-
demonetization period.
>> Yield on LAP-13.55%-13.75%. Yield on Project loan is 15.45%-16.2%. Yield on SME is >13%.
>> Will not raise equity in 2 to 3 years.
>> Disbursements were up 10% YoY primarily driven by home loans and LAP (up 15% YoY). Disbursements in
project financing were flat-to-marginally-negative on a YoY basis.
>> Not utilized the RBI dispensation scheme.

View & Valuation

DHFL has continuously performed well in its operating parameters with healthy AUM growth and stable assets
quality. We expect the AUM growth of 18%-19% going forward. Recently huge rate cut by banks has raised the
concerns over the margin protection for Housing Finance companies. However due to strategy of management for
efficient liability mix and increasing share of non-core home loan portfolio, we expect DHFL to maintain its NIM at 3%
level. Improving operating efficiency has boosted the bottom line of the company and we expect this trend to
continue in FY18. Also the stake sale deal will further boost the earnings for the company with free from concern of
stake dilution for next 2 to 3 years. We recommend BUY with target price of Rs 385.

Quarterly Performance (Rs in Cr)

Financials 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Interest Income 1,488 1,541 1,633 1,762 1,845 1,914 1,932 2,122 2,315
NII 355 365 399 405 425 436 456 491 514
Net Total Income 393 407 419 454 466 488 484 536 565
Operating Expense 126 121 126 132 137 155 136 140 150
PPP 267 286 293 322 328 333 348 396 416
Provisions 25 35 32 45 48 50 45 45 45
PBT 242 251 261 277 280 283 303 351 371
Net Profit 160 162 173 180 186 190 201 232 244

Profitability Metrix 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Yield% (Cal.) 11.67 11.25 11.18 11.48 11.46 11.30 10.92 11.53 12.06
Cost of Fund% (Cal.) 10.05 9.90 9.69 9.92 9.75 9.77 9.45 9.18 9.29
Spread% (Cal) 2.82 2.57 2.78 2.88 3.05 2.91 2.87 2.35 2.77
NIM% 2.77 2.89 2.96 2.86 2.87 2.96 2.91 3.05 3.07
C/I Ratio 32.18 29.73 29.97 29.03 29.46 31.76 28.11 26.09 26.48

Narnolia Securities Ltd 22

Please refer to the Disclaimers at the end of this Report

 DHFL
(Rs in Cr)
Assets Quality 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
GNPA% 0.77 0.84 0.8 0.81 0.84 0.93 0.98 0.96 0.95
NNPA% 0 0 0 0 0 0 0 0 0
PCR% 108.2 100.2 106.9 111 110.79 101.74 99.3 99.6 101.5

3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

AUM 52,637 56,884 60,002 62,837 65,962 69,524 72,012 75,223 78,296
On- Book 47,776 51,040 53,796 56,312 58,992 61,775 63,647 65,346 68,961
Off- Book 4,861 5,845 6,206 6,525 6,970 7,749 8,365 9,877 9,335

AUM MIX %
Disbursement Growth% YoY
Housing LAP/LRF Project Others
120 35%
32%
30% 31% 31%
100 6 8 9 10 12 13
17 16 16 16 25% 24%
26%
80 16 16 22%
20%
60 18%
15%
14%
76 74 12%
40 72 72 70 69 10% 10%

20 5%
0%
0
2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

NIM% Borrowing Mix %

3.10 Bank Money Market NHB Others
3.05 3.07
3.00
2.96 2.96 100 12 12 14 10 13
2.90 2.89 2.91
2.86 2.87 80
32 33 32 43
2.80 42
2.77 60
2.70 40
53 53 52 44
2.60 42
20

-
3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

Narnolia Securities Ltd 23

Please refer to the Disclaimers at the end of this Report

 DHFL

Financials Snap Shot

INCOME STATEMENT (Consolidated) RATIOS
FY13 FY14 FY15 FY16 Spreads Analysis (%) FY13 FY14 FY15 FY16
Interest Income 3,883 4,776 5,839 7,159 Yield on Loan Portfolio % 13.7 13.1 12.9 12.7
Interest Expenses 3,119 3,783 4,460 5,490 Cost Of Borrowing % 10.7 10.6 10.4 9.8
Net Interest Income 764 993 1,380 1,669 Spread % 3.0 2.5 2.5 2.9
Other Income 257 194 142 157 Profitability Ratios (%)
Total Net Income 1,021 1,187 1,522 1,827 NIM % 2.7 2.7 2.9 3.0
Employee Benefits Expense 141 176 196 228 ROA % 1.5 1.3 1.3 1.2
Other Expenses 216 195 252 298 ROE % 14.1 15.5 15.1 15.1
Total Oper. Expenses 365 382 474 550 EPS (Rs) 17.6 20.6 21.3 25.0
Pre Provisioning Profit 656 805 1,048 1,277 Cost to Income Ratio % 35.8 32.2 31.1 30.1
Provisions / Write offs (Net) 45 70 105 175 Asset-Liability Profile
Profit Before Tax 611 735 943 1,102 Loans/Borrowings (X) 1.1 1.0 1.0 1.0
Total Tax 159 206 322 373 Debt/Equity (x) 8.5 9.5 8.7 10.3
Profit After Tax 452 529 621 729 PCR % Specific 113 104 100 102
Gross NPAs (Rs cr) 263 394 473 568
Gross NPAs % 0.7 0.8 0.8 0.9
Net NPAs (Rs cr) 43 93 72 50
CRAR % 19.0 16.5 17.6 17.0

Loan Mix %
BALANCE SHEET Housing Loan 83 78 75 72
FY13 FY14 FY15 FY16 LAP 11 16 18 16
Share Capital 128 128 146 292 Project 6 6 6 10
Reserves 3,109 3,447 4,490 4,725 Others - - 1 2
Net Worth 3,237 3,575 4,636 5,017 Total AUM (Rs in Cr) 36,117 44,822 56,884 69,524
Long term Debt 26,565 32,295 36,889 45,119 Borrowing Mix %
Short term Debt 876 1,595 3,637 6,437 NCD 11 20 28 33
Total Borrowing 27,441 33,890 40,526 51,556 Bank 71 68 58 53
Long Term Provision 264 331 430 583 Others 18 12 14 14
Other Liability 4,862 6,063 9,046 10,697 Resource Mobilization (Rs in Cr) 32,058 39,487 48,921 61,104
Total Liability 35,803 43,859 54,638 67,853
Fixed Assets 438 988 985 781 About the Company
Non-current investments 191 307 611 720 DHFL was founded in 1984 and is promoted by Wadhawan Group.
Current investments 85 269 396 173 Focused on low and medium income group it operates mainly in tier
Loans/Advances 34,222 41,016 51,511 62,295 1 and tier 2 cities with its presence in 363 cities. It has total AUM of
Cash & Bank Balances 513 983 676 3,408 Rs 783 Billion .
Other Assets 356 297 460 476 Chairman & MD Kapil Wadhawan
Total Assets 35,803 43,859 54,638 67,853 CEO Harsil Mehta

24
Narnolia Securities Ltd

Please refer to the Disclaimers at the end of this Report

 Narnolia Securities Ltd
201 | 2nd Floor | Marble Arch Building | 236B-AJC Bose Road |
Kolkata-700 020 , Ph : 033-40501500
email: narnolia@narnolia.com, website
: www.narnolia.com

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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
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and/or employees may have interests/ positions, financial or otherwise, individually or
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