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PIDILITE INDUSTRIES
Adhesive growth: Ties that bind
India Equity Research| Consumer Goods
Pidilite (PIDI) is a high quality niche consumption play imbued with strong EDELWEISS 4D RATINGS
brand equity in under penetrated and high growth categories. The Absolute Rating BUY
company has sustained its dominant position (Fevicol, M-seal have ~70% Rating Relative to Sector Performer
market share) by virtue of direct reach to influencers/end users, Risk Rating Relative to Sector Medium
successful brand extensions, innovation spurred by robust R&D, out-of- Sector Relative to Market Overweight
the-box and catchy ads, acquisitions (ROFF, Mseal, Sargent Art, Hobby
Ideas), limited competition and widespread distribution. Key
MARKET DATA (R: PIDI.BO, B: PIDI IN)
risk/concerns are performance of its international portfolio (especially
CMP : INR 294
Brazil) and the Elastomer project. We expect 17% revenue CAGR with
Target Price : INR 357
robust 20% PAT CAGR over FY14-16E. We initiate coverage with ‘BUY’. 52-week range (INR) : 304 / 206
Share in issue (mn) : 509.8
Consumer business will continue to sizzle M cap (INR bn/USD mn) : 151 / 2,425
Robust growth across segments spurred PIDI’s consumer & bazaar products (CBP) and Avg. Daily Vol.BSE/NSE(‘000) : 280.0
industrial chemicals segments to post 19% and 14% CAGR, respectively, over FY08-13.
Though we expect the CBP business to maintain growth momentum, the industrial SHARE HOLDING PATTERN (%)
chemicals business may grow at a slower pace (11.5% CAGR) over FY14-16E due to the Current Q1FY14 Q4FY13
economic slowdown. Overseas business (has been a drag) margins are likely to improve Promoters * 70.1 70.1 70.1
riding sales pick up (Bangladesh, Thailand fastest growth engines), effective MF's, FI's & BK’s 5.3 5.4 5.6
management changes, price hikes and mix improvement. FII's 13.7 13.9 13.6
Others 10.9 10.6 10.7
Direct connect, distribution and innovation key strengths * Promoters pledged shares
(% of share in issue)
: Nil
Investment Rationale
Flagship brands to anchor growth
PIDI’s presence in niche, under-penetrated and high growth categories with limited
competition makes it a good play on Indian consumer goods spends. The niche presence
yields high gross margins, high barriers to entry, strong brand equity, mass acceptance and
superior growth opportunities.
Chart 1: Consumer & Bazaar product sales expected to grow at 19% CAGR over 14-16E
48,500
“We keep our eyes and ears
open to what customers want, 40,500
while our strong R&D gets us
exactly the right products" 32,500
(INR mn)
- M B Parekh, 24,500
Chairman & MD
16,500
8,500
FY14E
FY15E
FY16E
FY08
FY09
FY10
FY11
FY12
FY13
Source: Company, Edelweiss research
The adhesive & sealants segment, contributing 51% to total sales, houses strong brands like
Fevicol, M-seal and Fevistik under its umbrella. The company has near monopoly in this
segment with Fevicol and M-seal enjoying ~70% market share each in the adhesive and
sealants product categories, respectively. The category grew 18% YoY in FY13.
The second largest category, construction chemicals (contributing 20% to total sales), also
has strong brands, Dr. Fixit (largely used as waterproofing and repair solution) and Roff
(used as complete range of tile fixing solution) under its umbrella. This category grew 20%
YoY in FY13.
PIDI’s third largest category, art materials (contributing 10% to total sales), surged 35% YoY
in FY13. In art materials, the company has a host of brands like Hobby Ideas, Ranipal,
Motomax and Cyclo. Off late, the segment has seen significant growth on account of fresh
look at products, new product introductions, better communication and improved
distribution model.
Industrial products account for 19% of the company’s revenue. This segment has lower
margin vis-à-vis consumer and bazaar segment; it includes three sub-segments: (i) Industrial
adhesives: Being market leader, PIDI provides an extensive range of products catering to
packaging, cigarettes, stock labels, stickers, footwear, etc. (contributes 7% to company’s
revenue); (ii) Industrial resins: The company produces polymers and co-polymers for
industries like paints, non-woven and flocked fabrics and leather (contributes 6% to total
revenue); and (iii) Organic pigments and preparation: Pioneer in manufacturing Pigment
Violet 23 in India. Market leader in pigment dispersions for textile segment; the segment
contributes around 6% to total revenue.
Since the industrial segment caters to various industries (textiles, leather, footwear, ink,
packaging, etc.) its growth pattern largely mirrors IIP growth figures.
In the others category, PIDI manufactures a variety of special acetates. Currently, these
products are under test marketing with special focus on niche segments targeted at import
substitution.
10.0
5.0
FY08 FY09 FY10 FY11 FY12 FY13
Consumer & Bazaar Speciality Industrial Chemical
Source: Company, Edelweiss research
26.0
22.0
(%)
18.0
14.0
10.0
FY08 FY09 FY10 FY11 FY12 FY13
Consumer & Bazaar Speciality Industrial Chemical
Source: Company, Edelweiss research
80.0
60.0
(%)
40.0
20.0
0.0
FY08 FY09 FY10 FY11 FY12 FY13
Adhesives & Sealants Construction/Paint Chemical Art materials & others
Source: Company, Edelweiss research
80.0
60.0
(%)
40.0
20.0
0.0
FY08 FY09 FY10 FY11 FY12 FY13
Industrial resins Industrial adhesives Organic pigments and preparations
Source: Company, Edelweiss research
PIDI commands a premium over competitors riding strong brand—our channel checks
indicate that Fevicol commands a premium of 10% over its nearest competitor Jivanjor
(Jubilant Industries)—and it has created a huge entry barrier in the adhesive segment.
The company’s recent launches in the premium end—Marine Fevicol (for furniture in
constant touch with water), Speedex (fast adhesives) and fabric glue—are growing faster
than base adhesives.
The company operates in categories where presence of large multi nationals is limited,
which enables it to outpace small regional players (who lack financial strength, economies of
scale and have poor distribution network and weak brand image) with aggressive ads and
product extensions. Though PIDI leads most categories it is present in, Huntsman's brand
Araldite (epoxy resin segment) is ahead of the former’s Fevitite, although Huntsman’s white
glue brand, Carpenter, has not met with much success.
The Henkel Group has presence in this industry and poses competition in industrial specialty
segment. The Sika Group, based in Switzerland, with significant presence in construction
chemicals poses competition. Similarly in eastern part of India, Dendrite from the Kolkata-
based Chandra's Chemical Enterprise, also has significant presence but not at a national
level. Pidilite faces competition in art and stationery segment from the likes of Camlin, Faber
Castle.
In the construction chemicals category PIDI is not affected by entry of large paint players
(Asian Paints) as penetration levels are low. Though Asian Paints is posing competition by
providing one-stop solution to retail users Dr.Fixit continues to remain the market leader in
the construction chemical business due to its strong relationship with architects and
builders. In our view, new entrants will have limited presence in this space and will help
expand the nascent category.
4.4
(as % of sales)
3.8
3.2
2.6
2.0
FY08 FY09 FY10 FY11 FY12 FY13
Advertisements have created a pull for the white glue among retail consumers. This was the
first product in the category to generate sales not only from hardware stores, but also from
consumers who had a strong brand recall due to the creative and eye-catching television
commercials.
M-Seal and Steelgrip are also leading brands in the epoxy sealants and PVC insulation tape
categories, respectively. Roff is the second brand after Dr. Fixit in the construction chemicals
portfolio.
Dr. Fixit Institute of Structural Protection & Rehabilitation (DFI – SPR) is an initiative by
PIDI to develop the service life of civil structures in India. It is a non-profit organisation
operating as a knowledge centre to create awareness and skill development among
professionals about waterproofing, repair and rehabilitation via training programmes,
workshops and seminars.
PIDI in its endeavour to reach out to users launched Fevicol Furniture Book showcasing
samples of furniture designs, suitable for Indian homes, commercial spaces, offices,
showrooms, restaurants, farm houses, bungalows etc. The company has launched 31
successful volumes of this book riding high on numerous design variants, user-friendly
approach, easy to follow furniture diagrams and affordable price.
The company, under the aegis of its Arts, Stationery and Fabrics division, does the Fevicol
Science Project Challenge. It is an annual nationwide competition that identifies talent from
across schools. This contest encourages students to think about topics that are related to
their everyday life, futuristic concepts and make 3-D models of their interpretations of the
subject/topic. The 3-D modeling is to promote the “Learning by doing” attitude so that
young minds understand the theory as well as the actual working of concepts.
PIDI also introduced Fevistik Blue and Fevistik Purple in FY10. Unlike white glue, these
coloured sticks when applied appear coloured, but the colour disappears after a few
seconds, enabling young children to see and control the application of glue.
On similar lines, PIDI launched Fevicol SPEEDX, a premium white adhesive which is India’s
first fast-setting adhesive. This water-based adhesive is apt when time is of essence. It is
based on Nano Magnet Technology, which brings molecules closer very fast, resulting in an
exceptionally strong bond. It provides handling strength in just two hours against six to eight
hours taken by regular adhesives.
Similarly, in the construction chemicals segment several new products were launched under
Dr. Fixit brand—Dr. Fixit Low Energy Consumption systems (for high-end waterproofing
coupled with insulation for terraces and walls), Dr. Fixit Extensa (high-end puncture-proof
waterproof coating for roofs & basements) and Dr. Fixit Bathseal Kit (for comprehensive and
long lasting waterproofing for bathrooms).
Strong brand equity enables price hikes to offset raw material inflation
VAM and packaging materials (HDPE, LLP) are the key raw materials for PIDI, constituting
30-35% of raw material costs. VAM, a petrochemical produced from ethylene is a crude oil
derivative, which the company imports from Singapore (as imports are cheaper than captive
production). Hence, INR depreciation has a bearing on costs. The company tries to contain
COGS inflation by taking price hikes, which we believe, is not difficult due to its strong brand
equity and high market share.
Chart 7: Stable gross margin despite RM volatility due to high pricing power
58.0
53.0
48.0
(%)
43.0
38.0
33.0
FY08 FY09 FY10 FY11 FY12 FY13
Source: Company, Edelweiss research
6,000 20.0
5,000 15.0
(INR/barrel)
(%)
4,000 10.0
3,000 5.0
2,000 0.0
Q1FY10
Q2FY10
Q3FY10
Q4FY10
Q1FY11
Q2FY11
Q3FY11
Q4FY11
Q1FY12
Q2FY12
Q3FY12
Q4FY12
Q1FY13
Q2FY13
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Source: Company, Edelweiss research
0.48
0.46
(as % of sales)
0.44
0.42
0.40
FY10 FY11 FY12 FY13
Source: Company, Edelweiss research
The construction chemical category will be one of the faster growth drivers (Dr. Fixit and
ROFF) as it is a play on retail consumer’s discretionary income and in construction activity.
Its recent innovations like Fevicol Glue Drop, Dr Fixit Waterbar and smaller sized SKUs of
Fevikwik at INR 5 have done well. It has an extensive product portfolio across segments like
adhesives, sealants, fabric care, decorative paints, arts & stationery material and organic
pigments.
The company has a major research and development facility at Kondivita, Mumbai. Further,
the Pidilite Innovation Centre (company’s step-down subsidiary) was incorporated in
Singapore in December 2006 with the objective of undertaking R&D activities. The group’s
R&D team works closely with marketing and technical service teams to upgrade existing
products and develop new products to meet the continuously changing requirements. The
group has developed most of its products through strong in-house research and
development teams. The company aims to continuously develop new and innovative
products for consumers, craftsmen and industries.
Table 3: Major acquisition- Successful record of acquiring and integrating businesses and brands
Year Major Acquisition
2000 “M-Seal”, a brand of epoxy compounds was acquired.
2002 “Steelgrip”, a brand of PVC insulation tape was acquired.
2004 “Roff”, a brand of construction chemicals was acquired.
2005 Incorporated subsidiaries in Singapore, Brazil and Dubai to undertake its international operations.
Through its subsidiaries acquired Chemson, a Singapore based company manufacturing waterproof coating and
emulsion paints and Jupiter Chemicals LLC, a Dubai based company manufacturing construction chemicals
2006 “Tristar Colman” and “Fine Art”, brands, business and certain assets of canvas and student art colours and brushes
of drawing and painting, respectively, were acquired.
Bamco Limited, Thailand, a construction chemical company was acquired.
Pidilite USA Inc, Delaware, a subsidiary of the Company, acquired the business and assets of Sargent Art Inc. (the
makers of art material range of products) and Cyclo Industries LLC (the sellers of automotive maintenance
Established a research and development centre in Singapore.
2007 Pidilite Do Brazil Desenvolvimento De Negocios Ltda, a wholly-owned subsidiary of the Company, acquired Pulvitec
(adhesives, sealants and construction chemicals).
Acquired plant and machinery, patents, trademark and technology of Synthetic Elastomer (Polycholoroprene
Rubber) plant in June 2007.
2008 Acquired assets and business of branded sealants and adhesives from Hardcastle & Waud Manufacturing Co. Ltd
and associates (brands like Holdtite, Rustolene and Leakgaurd).
2010 Acquired the retail wood working brand of Henkel, i.e. Woodlok
2013 Acquired the adhesive business of Suparshva Adhesives; strong presence in Maharashtra with its products priced
at a discount to Fevicol; it has good brand equity at the lower end of the market with wood working intermediaries.
The slump sale agreement includes brands, know-how and other assets pertaining to the adhesive business (under
the “Falcofix” brand).
Source: Company, Edelweiss research
Management has no plans to enter any new line of business as of now, but is looking to
expand and strengthen its current portfolio.
“In terms of looking at the split of Rural markets continue to drive growth
the demand I think it is the The company does not intend to vacate the LUP space (INR5 pack) as it is highly popular in
smaller towns, the smaller rural areas (growing faster than urban). In this price segment volume leverage offsets input
population agglomerations, cost inflation.
which are seeing stronger growth
than the larger Tier-1 cities.”
- Sandeep Batra,
Director Finance
As PIDI imports 30-35% of its raw material including VAM (constituting ~10.5% of total
COGS) fluctuation in INR impacts the company’s margin.
As per our calculations, for a 10% INR depreciation (considering 35% of RM to be imported)
the EBITDA will decrease by 11.7% and the PAT will decrease by 16.7% keeping all other
variables constant. In order to mitigate this impact of INR depreciation (to maintain EBITDA
margin at 16.3% as in FY13) PIDI will have to take a price hike of 2%.
However, taking into account exports (constitute ~9% of total sales) the impact is lesser.
Taking into account export earnings, 10% INR depreciation leads to 6.2% decrease in EBITDA
and 8.9% fall in PAT.
Over the past two years the entire Consumer pack has seen re-rating due to sustained
robust performance (on a relative basis) despite macro-economic slowdown which has
affected most other sectors. PIDI has also been a party to this re-rating phenomenon.
Valuation
PIDI’s broad product portfolio provides a good play in the consumer and specialty chemicals
space by virtue of its strong presence in under-penetrated and high-growth categories. We
are enthused by the company’s strong earnings growth, increasing market share, robust
volume growth and pricing power. Its strong brand equity with undisputed leadership and
sustained high volume growth reinforces our belief in the company’s high growth potential.
However, we will closely monitor the performance of its international operations, raw
material inflation (mainly due to INR depreciation) and development in the Elastomer
project.
We assign a target multiple of 25x to FY16E EPS arriving at a target price of INR357, based
on our strong conviction of sustained dominant position in various categories it operates by
virtue of direct reach to influencers/end users, successful brand extensions, innovation
spurred by robust R&D, out-of-the-box ads, acquisitions (ROFF, Mseal, Sargent Art, Hobby
Ideas), limited competition and widespread distribution. We have valued the stock at a
discount to Asian Paints (owing to PIDI’s smaller size) and other single product MNC
companies like Colgate and GSK Consumer who are also clear leaders in the categories they
operate in.
‐
PIDI’s earnings are expected to grow at 20% CAGR over FY14 16E. Strong cash generation
and better visibility of its earnings over the next two years are an added attraction. We
expect current multiples to sustain due to strong earnings growth.
Hence, we initiate coverage on the stock with a ‘BUY’ recommendation. On relative return
basis, the stock is rated ‘Sector Performer’.
350
30x
280 25x
20x
210
(INR)
15x
140
10x
70
0
Nov-08
May-09
Nov-09
May-10
Nov-10
May-11
Nov-11
May-12
Nov-12
May-13
Nov-13
Key Risks
Economic slowdown
With urban areas contributing significantly to sales, a slowdown in economic growth may
negatively affect the company’s business. Slowdown is sharper in discretionary segment
against directly consumer related segments.
Strength Weakness
Opportunities Threats
Company Description
PIDI is the pioneer in consumer and specialties chemicals in India, with diverse product
range that includes adhesives and sealants, construction and paint chemicals, automotive
chemicals, art materials, industrial adhesives, industrial and textile resins and organic
pigments and preparations. Most of its products have been developed through strong in-
house R&D. The company is the market leader in adhesives and sealants, construction
chemicals, hobby colours and polymer emulsions in India. Brand Fevicol has become
synonymous with adhesives to Indian consumers and is ranked amongst the most trusted
brands in the country. Pidilite is also growing its international presence through acquisitions
and setting up manufacturing facilities and sales offices in important regions around the
world.
Pidilite faces limited competition as in most of its segments there are only a few large
companies with national presence. A large number of small size companies are active
regionally.
Business mix
Fig. 2: Consumer Bazaar dominates the business mix
Pidilite
Construction
Industrial resins (6%)
chemicals (20%)
Adhesive and sealants: The organised adhesive market in India is estimated at ~INR 10 bn
with Pidilite being a major player, garnering 70% market share. Pidilite has established
leadership position in adhesives and sealants segment with it contributing 51% to
company’s revenue. The company offers extensive range of products under this segment
used in woodworking, upholstery & flooring, footwear, automotive aftermarket, plumbing
and electrical and for decorative purposes. Brand Fevicol has become synonymous with
adhesives to millions in India and a huge entry barrier for other competing products. The
closest competitor is Jubilant Organosys with its Jivanjor brand. Huntsman's brand Araldite
is the leader in the epoxy resin segment, piping Pidilite's Fevitite into second place, although
its white glue brand, Carpenter, has not been successful. The company faces competition
from various local brands. This industry is expected to post 10-12% in the long term. Fevicol
is marketed in 54 countries worldwide. In India alone it is available at over 50,000 stores
across the country.
Construction chemicals: These are materials that are added to a building structure to
increase its life and provide stability and used during pre-construction and post-construction
stages. These include extensive range of products like waterproofing material, admixtures,
tile fixing solution, floor hardener, sealants, grouts, heat reduction coatings. Current market
size of this segment is estimated to be INR ~18 bn. It contributes ~20% to total revenue. This
segment has delivered 30-35% CAGR over the past five years and is expected to be the
company’s growth driver and post CAGR of more than 25%. Pidilite owns two well known
brands under this category viz., Dr. FIXIT and ROFF used for varied application in
waterproofing, sealing, flooring, concrete treatment & plastering. The Sika Group, based in
Switzerland, with significant presence in construction chemicals poses stiff competition.
Art Material and stationery: Pidilite has an extensive range of art material catering to
education, hobby and fine art segments. Products under this segment are complemented
with books, videos and training material to make them popular among the targeted end
user segment. The company’s position in this segment was strengthened with the
acquisition of Traistar Colman brand in India and The Sargent Art brand by its subsidiary in
the US. Various products manufactured under this product portfolio are tempera colours,
crayons, chalks, markers, poster paints, water colours, clay, fabric colours, glass colours,
ceramic colours, moulding putty, brushes, hobby kits, hobby books, etc. This segment
contributes around 10% to the company’s total revenue. This segment is expected to grow
at 10-12% in long term. This product range is dominated by competitiors Camlin and Faber
Castle.
Others: This includes a wide range of products like fabric care, car care and decorative
paints. Pidilite acquired Cyclo brand in June 2006; its product range includes maintenance,
performance and appearance products for DIY (Do-it-Yourself) and professional car care
segment. Cyclo products are sold in US and over 50 other countries. Ranipal has a good
market presence in the fabric care segment. Main competitor in fabric care segment is
Jyothy Lab’s Ujala.
Industrial adhesives: Being market leader, Pidilite provides extensive range of products
catering to packaging, cigarettes, stock labels, stickers, footwear, etc. This segment
contributes 7% to company’s revenue.
Industrial resins: It contributes 6% to total revenue. The company produces polymers and
co-polymers for industries like paints, non-woven and flocked fabrics and leather.
International business
Pidilite exports to more than 80 countries and has 14 overseas subsidiaries (four direct and
10 step-down subsidiaries) operating across various geographies in the world. The
company’s overseas subsidiaries, including US, Brazil, Thailand, Singapore, Dubai, Egypt and
Bangladesh, contribute ~11% to consolidated sales. However, most subsidiaries are loss
Manufacturing facilities: Pidilite has seventeen manufacturing facilities and Research &
Development facility at Kondivita, Mumbai for which it has obtained EMS (Environment
Management System)/OHSAS (Occupational Health & Safety Assessment System)
Certification. In FY13 the Company commissioned a manufacturing unit at Mahad for
producing PVC film. Apart from company owned plants, it contracts third party
manufacturers for a few of its products. Pidilite is the only manufacturer of VAM in India
with an installed capacity of 30,000 MT per annum. Due to the global demand-supply
situation it was unviable to manufacture in house and hence the plant remained shut during
FY13. The company has started manufacturing few speciality acetates at the plant which
have received positive feedback from the markets.
Awards:
• Fevicol was ranked as India’s 45th Most Trusted Brand in 2012 in Brand Equity’s Most
Trusted brands survey
• Fevicol was also ranked 3rd Most Trusted Brand in the Household Care Category
• Fevicol was ranked amongst the Most Trusted Brands list for 5 consecutive years
Mr. Sushilkumar K. Parekh: Mr. S.K. Parekh is the current Vice Chairman of the company
and is the promoter director. He has served as the non executive Vice Chairman since 1969
with a vast experience of more than 57 years in the industry. He is also a director of Parekh
Marketing, Pidichem, Fevicol, Kalva Marketing and Services, Ruchiket and Pargro
Investments.
Mr. Madhukar B. Parekh: After Mr. Balvant K. Parekh passed away Mr. M.B. Parekh was
made the Chairman of the company w.e.f. May 28, 2013. He is also Managing Director of
the company and has served as the Director of the company since 1972. He also serves as
the Managing Director of Vinyl Chemicals India and has been an Independent Non Executive
Director of Excel Industries since March 25, 2005. Mr. Parekh holds a Bachelor's Degree in
Chemical Engineering from UDCT and an M.S in Chemical Engineering from University of
Wisconsin, US. He has more than 38 years of experience in the industry.
Mr. Narendrakumar K. Parekh: Mr. N.K. Parekh is the Joint Managing Director and
Executive Director of the company. He is also a Director of Vinyl Chemicals (India), Fevicol
Company, Parkem Dyes and Chemicals and holds senior position in other companies as well.
He is a qualified Technologist for Dyes and Intermediates and a qualified Chemical Engineer
[B.Sc., B.Sc. (Tech), M.S.Chem Engg (U.S.A)] and has experience in the industry for over 44
years.
Mr. Apurva N. Parekh: Mr. A.N. Parekh is the Whole Time Director of the company since
July 2005. He is a promoter director of the company and has been working with PIDI since
1996. Mr. Parekh is a Chemical Engineer with qualification of B.S. Chem. Engg. (U.S.A.) and
has total business experience of 17 years.
Mr. Ajay B. Parekh: Mr. A. B. Parekh is the Whole Time Director of the company since 1985.
He is B.Chem (Engg.), Masters of Business Administration (U.S.A.). He is also the director of
Vacuum Forming, Ishijas Chemicals, Vapkon Finance & Investment and has experience of
over 25 years.
Mr. Sandeep Batra: Mr. Sandeep Batra, Director – Finance of the Company, was appointed
as a Wholetime Director with effect from 1 April 2007. Mr. Batra joined the ICI Group in
1988. He is a Chartered Accountant and has held a variety of finance, commercial and
business roles.
Financial Outlook
Revenue expected to post 17% CAGR over FY14-16E
With increased consumption and discretionary spending, recovery in real estate and
construction sector picking up, PIDI is set to achieve a top line CAGR of ~17% over FY14-16E.
50,000 20.0
40,000 15.0
(INR mn)
(%)
30,000 10.0
20,000 5.0
10,000 0.0
FY09 FY10 FY11 FY12 FY13 FY14E FY15E FY16E
Total revenues % growth YoY
Source: Company, Edelweiss research
9,600 16.0
7,200 12.0
(INR mn)
(%)
4,800 8.0
2,400 4.0
0 0.0
FY14E
FY15E
FY16E
FY08
FY09
FY10
FY11
FY12
FY13
6,400 11.2
4,800 8.4
(INR mn)
(%)
3,200 5.6
1,600 2.8
0 0.0
FY08 FY09 FY10 FY11 FY12 FY13 FY14E FY15E FY16E
PAT PAT margins
Source: Company, Edelweiss research
Financial Statements
Additional Data
Directors Data
Shri S K Parekh Promoter/ Vice Chairman/ Non-Executive Director Shri Bansi S Mehta Non Executive Director/ Independent Director
Shri M B Parekh Promoter/ Managing Director/ Executive Director Shri Ranjan Kapur Non Executive Director/ Independent Director
Shri N K Parekh Promoter/ Joint Managing Director/ Executive Director Shri Yash Mahajan Non Executive Director/ Independent Director
Shri A B Parekh Promoter/ Whole Time Director/ Executive Director Shri Bharat Puri Non Executive Director/ Independent Director
Shri A N Parekh Promoter/ Whole Time Director/ Executive Director Shri D Bhattacharya Non Executive Director/ Independent Director
Shri R M Gandhi Non Executive Director/ Independent Director Shri Sanjeev Aga Non Executive Director/ Independent Director
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*as per last available data
Bulk Deals
Data Acquired / Seller B/S Qty Traded Price
No Data Available
*in last one year
Insider Trades
Reporting Data Acquired / Seller B/S Qty Traded
No data available
*in last one year
ABSOLUTE RATING
Ratings Expected absolute returns over 12 months
Sector return is market cap weighted average return for the coverage universe
within the sector
SECTOR RATING
Ratings Criteria
Overweight (OW) Sector return > 1.25 x Nifty return
Edelweiss Securities Limited, Edelweiss House, off C.S.T. Road, Kalina, Mumbai – 400 098.
Board: (91-22) 4009 4400, Email: research@edelweissfin.com
Nischal Maheshwari Co-Head Institutional Equities & Head Research nischal.maheshwari@edelweissfin.com +91 22 4063 5476
Recent Research
Date Company Title Price (INR) Recos
Rating Distribution* 127 44 8 180 Buy appreciate more than 15% over a 12-month period
* 1 stocks under review
Hold appreciate up to 15% over a 12-month period
> 50bn Between 10bn and 50 bn < 10bn
Reduce depreciate more than 5% over a 12-month period
Market Cap (INR) 112 54 14
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