Vol. 35. No.

03 • JAN 06 - 19, 2020

28 Cover Story
33

Market Strategy For Budget

Recommendations

10 12 14 Regulars
06 Editor’s Keyboard
Choice Scrip Low Priced Scrip Hot Chips 07 Company Index
08 Market View

18
16 Technicals
Analysis 83 Query Board
KRBL Limited 86 Reviews
Nutritious to your Portfolio! 88 Kerbside

Subscribers can access

24
the complete databank
consisting of more than
Special Report 3500 companies on our
website www.DSIJ.in
Higher RoE – Communication Feature sections
Great But Not Always! are advertorials provided by the
company & carried on “as is” basis.

4 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in

DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 5
 Year 2020 Likely To Put A Smile
On Investors’ Faces
M any must be relieved that 2019 is behind us now as the mid-cap and small-cap
stocks continued to languish at low levels. What 2019 has taught us is to look at
fresh industries and companies with a new perspective. The new-age dynamic and
shorter business cycles should no longer limit our sight to traditional sectors only. Who
would have thought that wealth could be created in insurance and asset management stocks.

Another observation of 2019 was - winners kept on winning while losers kept on losing.
Corporate governance was another tricky affair that investors struggled to deal with in 2019.
In short, 2019 has made us smarter, cleaner, sharper and more realistically focussed as we
approach 2020 with a slew of new measures and ideas.

The IPO investors did well for themselves in 2019. The BSE IPO index gained 36 per cent
when Sensex gained merely 15 per cent in 2019. The median return stood at 42.6 per cent
over the IPO prices in 2019. I believe that IPOs will remain in limelight in 2020 as well. It is
estimated that IPOs, worth up to `50,000 will hit markets in 2020 and investors can expect a
repeat performance in 2020.

In this special issue, we bring to you a list of Top 1,000 companies, the rankings of which, is
based on their market capitalisation, revenue and profitability. Use it to study and cherry-pick
stocks that suit your portfolio style. In our cover story, we have recommended a tactical
strategy to play the budget. The story should help investors play profitably the most-awaited
annual event in the markets, the Budget.

Often RoE is discussed by analysts and investors alike. There are several myths surrounding
high RoE stocks versus low RoE stocks. In our special story on RoE, we have discussed in
detail the implications of buying a high RoE stock versus a low RoE stock. Investors will
benefit from the subtle finding presented in it.

Investors can let stock returns do the talking this season as 2020 promises to be a
constructive year. The government in my view has got its priorities aligned in the interest of
equity investors and the broader markets will chip-in in a quarter or two. There is a little
doubt in my mind that 2020 belongs to Emerging Markets (EM) even as the total wealth in
EM stocks and bonds now exceeds US$ 27 trillion. This is bigger than the economies of US
and Germany combined. Let me remind you that Indian equity market within the EMs
basket has the best earnings growth outlook.

Also, amongst the emerging markets, India witnessed highest foreign inflows so far in 2019.
Since January 2019, Foreign Portfolio Investors (FPIs) pumped in US$ 14.3 billion in India.
Taiwan saw nearly US $ 9.8 billion inflows, Indonesia saw an inflow of US$ 3.4 billion while,
South Korea saw US$ 1.1 billion of foreign inflows. The steady flow from overseas market is
expected to continue in 2020. 

So, gear up for some fascinating opportunities that markets have in store for you! Stay in
touch and we will guide you through the maze and pin-point the exact areas one needs to
focus on.

Happy Investing!

RAJESH V PADODE
Managing Director & Editor

6 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in

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Founder Graphics
Late V B Padode Vipin Bendale Debt-free companies
Managing Director & Editor Subscription & Customer Service
Utkarsh Sawale In your previous article on Debt-free companies, you talked about
Rajesh V Padode
the zero debt companies losing out on tax shield that companies which
Compliances and Internal Audit
Deputy Editors
Arvind Manor
employ debt enjoy. Can you further elaborate how debt free companies
Yogesh Supekar lose out on this advantage?
Shashikant Singh Marketing & Sales  - Akash Puri
Copy Editors Farid Khan - AVP
Juhi Shahab Mayank Dubey - AVP Digital
Editor Responds: In simple words, tax shield is the reduction in the taxable
Research Mumbai:
Anand Chinchole - Sr. Manager income of the company which is attained by claiming various allowable
Karan Bhojwani
Apurva Joshi Delhi:
deductions, such as the interest expense, depreciation or amortisation. These
Amir Shaikh Lokesh Sharma - Sr. Manager deductions reduce the taxable income for a given year or might defer taxes to
Nidhi Jani future. Since zero debt companies have no interest expense that can be
Henil Shah Domain Experts deducted, they miss out on this reduction of taxable income, thereby, paying
Pratik Shastri
Hemant Rustagi more taxes. Hope this helps you understand the concept. Keep writing to us
Vinayak Gangule
Jayesh Dadia and assist us with your feedback!

DSIJ Private Limited

Recommendations
For Customer Service Company/Scheme Reco. Price (`) Column Page No
020-49072626 OR  service@DSIJ.in AshokA Buildcon l Hold 102.95 QueryBoard 84

Mumbai Office Bandhan Bank l Hold 502.85 Reviews 86

419-A, 4th Floor, Arun Chambers, Tardeo, Next to AC Market Bata India Ltd l Buy 1745.45 Choice Scrip 10
Mumbai - 400034 022-43476012/16/17
Blue Star l Buy 828.15 Hot Chips 14
Pune Office
Cyient Ltd l Hold 433.05 QueryBoard 83
C-105, 1st Floor, Trade Center, North Main Road, Near Axis Bank,
Opposite Lane no. 6, Koregaon Park, Pune - 411001 ESAB India l Buy 1319.50 Kerbside 88
020-49072600
Filatex India Limited l Hold 40.40 Reviews 86
Delhi 8076878278 Housing & Urban Devp. Corp. l Buy 37.60 Low Priced Scrip 12
JUBILANT FOODWORKS l Buy 1652.60 Technicals 18
KRBL Limited l Buy 285.25 Analysis 20
To advertise, mail us on ads@dsij.in
Motilal Oswal Fin. Services l Buy 817.55 Kerbside 88
Printer and Publisher: Nitin Sawant, Editor: Rajesh V Padode for DSIJ Pvt
Ltd. on behalf of Achievements Merchandise Pvt Ltd. Printed at RMOSS NBCC l Hold 34.65 QueryBoard 84
Prints Pvt. Ltd., C/449, MIDC Pawane, TTC Area, Near Mayur Cold
Storage, Turbhe, Navi Mumbai -400708 and published from 419-A, 4th NESTLE INDIA l Buy 14789.95 Technicals 18
Floor, Arun Chambers, Tardeo, Next to AC Market, Mumbai - 400034
 All rights reserved.  While all efforts are made to ensure that the Oriental Aromatics Ltd l Buy 176.20 QueryBoard 83
information published is correct and up-to-date, Dalal Street Investment
Journal holds no responsibility for any errors that might occur. All Persistent Systems l Buy 705.60 Kerbside 88
material contained herein is based on fundamental and technical analysis
and other in-house methods, which though reliable, are not infallible. The Polycab India l Buy 993.25 Hot Chips 14
information given in the magazine is of an advisory nature. Readers are
advised to consult experts before taking any investment decision and Dalal Security & Intelligence Serv. l Buy 967.35 Kerbside 88
Street Journal holds no responsibility for any losses that may arise due to
investment decisions made on the basis of information given within the Thomas Cook l Hold 64.10 QueryBoard 85
magazine. No reproduction is permitted in whole or part without written
consent from Dalal Street Journal  All disputes are subject to the Ujjivan Small Finance Bank l Hold 53.10 QueryBoard 85
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 Dalal Street Investment Journal is a member of INS/ABCs. BP - Book Profit • BPP - Book Partial Profits • BL - Book Loss

DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 7

Market Watch
Stocks Bid Goodbye To 2019
With Better Performance!
T
he year 2019 was filled with
many hiccups on domestic
and global levels. On one
hand, investors were worried
about the depth of the
economic slowdown with trade war
tensions fuelling in, while on the other
hand, the governments intervened to
revive demand in the economy with tax
cuts and fiscal boosts. According to
investors, market breadth remains in
favour of advances. Professional and
private investors prepare to step into 2020
with mixed sentiments pondering over
the direction of the market for the year.
Benchmark indices were trading in
positive for consecutive sessions as US
President Donald Trump said that he
intends to hold a deal signing ceremony
with President Xi Jinping. Hence,
NASDAQ registered an increase of 1.49
per cent, S&P 500 also increased by 0.93
per cent and Dow Jones Industrial
Average (DJIA) registered a growth of
0.80 per cent. Along with a positive deal
outlook, Chinese manufacturing data
showed an improvement by supporting
the gain of Shanghai index by 1.86 per
cent and of Hang Seng by 2.95 per cent.
Following a pullback in Chinese
companies, despite more than expected
manufacturing data, Nikkei was dragged
down by 1.23 per cent. For the fortnight,
European indices were trading in
negative such as DAX was down by 1.18
per cent and CAC 40 went down by 0.16
per cent except FTSE, which was up by
0.90 per cent.
As for the domestic markets, before
entering into 2020, Sensex and Nifty
embedded positive sentiments amongst
investors as they increased by 1.51 per
cent and 1.67 per cent, respectively. The
domestic sectoral indices registered a
growth during the fortnight as Small-Cap
and Mid-Cap indices were up by 1.42 per
cent and 2.58 per cent, respectively. Metal
8 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020
index was up by 7.97 per cent after an
improvement in China and US economic
data, which is beneficial news for the
sector. Auto index increased by 4.16 per
cent while, FMCG and Power indices
were up by 0.73 per cent and 1.37 per
cent, respectively. During the fortnight,
IT index was also up by 2.58 per cent.
Realty index also performed well
increasing by 2.51 per cent with fiscal
boost announcement made by Union
Finance Minister Nirmala Sitharaman.
The government unveiled `102 lakh
crore national infrastructure pipelines in
accordance with the vision of the
government to make India a US$ 5
trillion economy by 2024-25.
Institutional trading data showed that
FIIs were net buyers to the tune of
`8,481.9 crore while DIIs were net sellers
with an outflow of `5,596.5 crore.
Performance Of Indices
16th Dec. 30th Dec. Gain/Loss
Indices
2019 2019 (%)
Sensex 40938.72 41558 1.51%
Nifty 12053.95 12255.85 1.67%
Mid-Cap 14762.39 14972.27 1.42%
Small-Cap 13305.79 13648.75 2.58%
Auto 17898.21 18642.95 4.16%
Bankex 36486.14 36866.83 1.04%
FMCG 11365.75 11448.3 0.73%
IT 15183.42 15575.06 2.58%
Metal 9649.23 10417.83 7.97%
Power 1888.62 1914.47 1.37%
Realty 2213.75 2269.29 2.51%
Benchmark indices were
trading in positive for
consecutive sessions as
US President Donald
Trump said that he
intends to hold a deal
signing ceremony with
President Xi Jinping
The gold prices surged in the month of
December as well. Gold is up by almost
2.45 per cent to `40,120 for 10 gram of 24
carat gold in the last few weeks and it is
up by 2.69 per cent since the beginning of
this month. The Brent crude oil, in the
last couple of weeks, was up by 1.01 per
cent. Crude oil prices rose higher after
the Energy Information Administration
posted an inventory draw of 5.5 million
barrels in its last weekly petroleum status
report for 2019. Since the beginning of
the month, Brent crude oil has gone up
by 8.33 per cent. In 2019, the rupee got
weakened by 2.25 per cent. On December
26, Rupee ended at the lowest level
against dollar since December 4, ending
at `71.31 per dollar. DS
16th Dec. 30th Dec. Gain/Loss
Indices
2019 2019 (%)
Dow Jones Ind 28,235.89 28462.14 0.80
S&P 500 3191.45 3221.29 0.93
NASDAQ 8,814.23 8945.99 1.49
FTSE 100 7,519.05 7587.05 0.90
DAX 13,407.66 13249.01 -1.18
CAC 40 5,991.66 5982.22 -0.16
Hang Seng 27,508.09 28,319.39 2.95
Nikkei 23,952.35 23,656.62 -1.23
Shanghai 2,984.39 3,040.02 1.86
Net Investment In Equity Markets (`/Cr)
Date FIIs DIIs
30 Dec 2019 757.73 201.32
27 Dec 2019 131.48 125.77
26 Dec 2019 -11.07 120.46
24 Dec 2019 2242.34 -345.22
23 Dec 2019 472.32 -1947.36
20 Dec 2019 836.43 -285.41
19 Dec 2019 1852.6 -493.95
18 Dec 2019 1212.97 -1267.57
17 Dec 2019 869.61 -908.16
16 Dec 2019 117.49 -796.38
Total 8481.9 -5596.5
DSIJ.in
DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 9
Recommendations Equity
management believes that it can capitalise
and get more share of the organised
market. The company is gradually
Bata India Ltd reducing the entry level footwear
production and replacing it with higher

STEP INTO BETTER RETURNS margin premium footwear. This has

resulted in better gross sales numbers and
a better PAT as well as PAT margin, since
the premium footwear are priced with
HERE IS WHY higher margin per pair.
Strong financial performance
Good growth prospects BIL has also decided to focus on
franchising after a 20-year gap. This
Focussed management two-year old initiative has added 160 plus

B
ata India Limited (BIL) has
the largest range of footwear
in the Indian market. The
parent company Bata is the
world’s leading shoemaker by
volumes. Despite being a household name
in Indian footwear, the brand always had
a problem of being local and meant
especially for the old generation. The
focus of the new BIL management has
been to reposition the brand so that, it
appeals to the young generation and they
willingly pay a premium for its products.
This is done with more investment on
advertisement, for example, the
‘surprisingly Bata’ ads campaign, more
focus on its wholesale channel, which
can be easily expanded, a special focus
on premiumisation of footwear. Bata has
launched an internationally-designed
‘Red Label’ collection of shoes in India.
Bringing in new designs to the market is
part of the attempt to cater to young
consumers who are more brand and
fashion-conscious. Interestingly, this all
is being funded through better gross
margin and also, through a tighter
control on non-direct costs like rent. This
could potentially create a virtuous cycle
wherein, a greater advertisement
Best of LAST ONE Year
Name of Reco Exit/CMP Absolute Annual
Company Price Price (`) Gains Returns
(`) (%) (%)
Balkrishna Ind. 1079.8 1317.85 22.05 417.79
Tata Metaliks 667.8 826.2 37.93 89.89
Colgate-Palmolive (I) 1051.65 1231 17.5 77.78
PFC 122.6 147.6 20.39 64.96
Symphony 1429.8 1672 16.94 64.19
spending could push up footfalls and that
coupled with premiumisation, would
drive revenue growth.
India still has lower footwear consumption
per head of 1.7, as compared to around 3 in
China. Moreover, the per-pair spent is also
on the lower side. The organised part of
this industry is approximately 40 per cent.
Of the organised part, BIL commands a
share of 15 per cent. The market is
extremely fragmented with the presence of
both domestic and foreign players. Bulk of
the market is in the value segment. The
stores by Q2FY20. To reach out to more
regions of India, the company also
stepped up the focus on entering new
towns through Franchise stores, thereby,
helping the management take Bata to
more than 45 new towns in this year,
with many more in the pipeline.
The Indian footwear industry has been
witnessing a change from a need-based
industry to fashion, style and fitness-
oriented industry and it has also got the
potential to increase its global market
share in footwear export. With changing
lifestyles and increasing affluence, the
domestic demand for footwear is
projected to grow exponentially and Bata
is poised to benefit from this change.
On a year-on-year consolidated basis, net
sales increased by 7.26 per cent to `721
crore in Q2FY20. EBITDA (excluding
other income) rose 113.86 per cent to
`185.35 crore and EBITDA margin was
25.67 per cent as against 12.88 per cent in
Q2FY19. Net profit in Q2FY20 jumped
from 29.97 per cent to `71.30 crore.
Currently, the company is trading at a PE
of 61x. Based on the strong financial
performance, good growth prospects and
focussed management plans, we
recommend our reader-investors to BUY
this stock. DS

CMP
Monthly Stock Market Returns Shareholding Pattern Last Five Quarters (`/Cr) (Standalone)
(`)
as of Dec. 2019 Sept-19 Jun-19 Mar-19 Dec-18 Sep-18
Total Income 721.96 882.14 679.39 778.70 673.07
Promoters 52.96
Other Income 17.75 16.93 27.93 13.74 14.90
Public 47.04 Operating Profit 203.10 259.90 122.43 177.37 102.24
Interest 30.77 31.35 0.59 0.93 1.13
Others --
BSE Code: 500043  Net Profit 71.37 100.73 88.27 103.18 55.66
CMP: `1,745.45 FV: `5 BSE Volume: 9335
Date: 01/01/2020 Total 100 Equity 64.26 64.26 64.26 64.26 64.26

10 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in

DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 11
Recommendations Equity
for funding housing and urban
Housing & Urban Development Corp. infrastructure in the country. HUDCO,
with its vast experience in providing

BUILD YOUR PORTFOLIO ON SOLID FOUNDATION

consultancy services and financial
assistance for implementation of
affordable housing projects could benefit
from this trend.

HERE IS WHY The requirement of housing is growing in

Low-risk loan portfolio
the context of rapid pace of urbanisation
and increasing level of migration from
Huge growth potential rural areas to urban areas for livelihood.
The fast-paced urbanisation in the
Consistent financial performance

H
ousing and Urban
Development Corporation
(HUDCO) is one of the
leading institutions in the
public sector supporting
the housing, housing-related
infrastructure and other infrastructure
development initiatives. With the various
flagship programme(s) of Government of
India in the Housing and Urban
development sector being in active
implementation mode, HUDCO’s role,
contribution and associated financial
strength would continue in the coming
years while, HUDCO would continue to
strengthen its position as a reliable
institution for country building initiatives.
Its ability to provide comprehensive
support for technical appraisal, taking up
site-inspections wherever required, and
providing loan assistance as viability gap
funding to States and their agencies make
it a unique institution.
HUDCO’s portfolio is less risky due to the
focus on government-sponsored and
social housing projects. The credit risks in
these exposures are relatively low, given
the guarantees and budgetary provisions
from Central/state governments for debt
servicing by the concerned entities.
HUDCO has restricted its fresh exposures
PRICED SCRIP
Best of LAST ONE Year
Name of Reco Exit/CMP Absolute Annual
Company Price Price (`) Gains Returns
(`) (%) (%)
National Fert. 61.30 78.00 27.24 350.22
Gufic BioSci. 78.70 95.10 20.84 288.55
Jamna Auto Ind. 77.15 96.75 25.41 254.10
Virinchi 88.00 110.00 25.00 225.00
Amines & Plasti. 68.00 81.00 19.12 167.88
to the private sector since 2013. Nearly 96
per cent of loan book is backed by
government.
The Union Budget 2019-20 has laid a
special focus on affordable housing and
infrastructure sectors. The government
intends to invest `100 lakh crore over the
next five years. Government of India has
taken several initiatives to boost affordable
housing and to revitalise the urban sector.
India has a huge gap of housing. The
Government of India’s ‘Housing for All’
initiative is expected to bring USD 1.3
trillion investments in the housing sector,
by 2025. There is a substantial opportunity
country, which is linked to the economic
progress of the country, has led the urban
areas to encounter some serious
challenges on the socio-economic front,
such as unemployment as well as
excess-load on existing infrastructure in
cities, like housing, sanitation,
transportation, health, education,
utilities, etc. With the current trend of
urbanisation, the number of Indians
living in urban areas is expected to reach
543 million by 2025. With an increasing
urbanisation, the demand for upgrading
the housing and urban development
needs in the country will increase,
providing a huge potential for business
operations of HUDCO.
On a consolidated basis, the gross sales
increased to `2,044 crore in Q2FY20 as
against `1,224 crore in Q2FY19 showing
a rise of around 67 per cent. EBITDA for
Q2FY20 was `1,996 crore as against
`1,100 crore in the same quarter last
year, showing a growth of 81 per cent.
PAT in the same period grew by 157 per
cent to `725 crore in Q2FY20 as against
`282 crore in Q2FY19. On YoY basis, the
company has shown sales, PAT
growth and consistent RoCE of around
8.4 per cent for the past 3 years.
By virtue of these factors, we
recommend our reader-investors to BUY
this stock. DS

CMP
Monthly Stock Market Returns Last Five Quarters (`/Cr) (Standalone)
Shareholding Pattern
BSE Code: 540530 (`) as of Dec. 2019 Particulars Sept-19 Jun-19 Mar-19 Dec-18 Sep-18
CMP: `37.60 FV: `10
BSE Volume: 220,735 Total Income 2044.73 1806.49 1474.75 1310.53 1224.38
Date: 01/01/2020 Promoters 89.81
Other Income 9.06 9.70 18.60 9.12 8.72
Public 10.19 Operating Profit 2005.17 1726.10 1332.51 1215.83 1108.90
Interest 1243.96 1209.49 921.79 680.13 685.32
Others --
Net Profit 725.84 335.68 236.37 328.26 282.14
Total 100 Equity 2001.90 2001.90 2001.90 2001.90 2001.90

12 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in

DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 13
Recommendations
BLUE STAR
BSE CODE Volume Face Value
500067 1,875 `2
B
lue Star is an air-conditioning and
commercial refrigeration
company, engaged in various
activities, such as electrical, plumbing
and fire-fighting services. The com-
pany's products include central air
conditioning, room air conditioners and
speciality cooling products. On the
consolidated quarterly front, the
revenue from operations for Q2FY20
was reported at `1,249.47 crore as
compared to `1,032.20 crore in Q2FY19,
a growth of 21.0 per cent. The EBITDA
(excluding other and financial income),
was reported at `73.58 crore in Q2FY20
as compared to `58.07 crore in Q2FY19.
Net profits saw a massive surge of
growth of 94.1 per cent in Q2FY20 to
`37.94 crore from `19.55 crore in the
same quarter for the previous fiscal year.
On the back of a healthy order book and
The scrips in this backed by the companies enhanced
column have been distribution reach, there has been an
recommended
with a 15-day investment POLYCAB INDIA
horizon in mind and BSE CODE Volume Face Value
carry high risk. Therefore,
P
542652 7,775 `10
investors are advised to Scrip’s Movement
take into account their risk
appetite before investing,
as fundamentals may
or may not back the
recommendations.
2019 2019 2019 2020 consolidated basis, for Q2FY20, the com-
Last Seven Days’ Volume Table
(No. of Shares)
Days Volume
Dec 23, 2019 15266
Dec 24, 2019 6557
Dec 26, 2019 7855
Dec 27, 2019 7094
Dec 30, 2019 33717
Dec 31, 2019 13317
Jan 01, 2020 7775
of new products within existing categories. Rising cash flows in coming years may lead
to an upward revision in capital expenditure along with a probability of higher share-
(Closing price as of Jan 01, 2020) holder returns through dividends. Hence, we recommend a BUY.
14 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020
Equity
CMP - `828.15
Target Stoploss
`890 `780(CLS)
Scrip’s Movement
2019 2019 2019 2020
Last Seven Days’ Volume Table
(No. of Shares)
Days Volume
Dec 23, 2019 857
Dec 24, 2019 977
Dec 26, 2019 785
Dec 27, 2019 975
Dec 30, 2019 2121
Dec 31, 2019 4580
Jan 01, 2020 1875
improvement in sales of cooling
products. We recommend a BUY for
Blue Star.
CMP - `993.25
Target Stoploss
`1,070 `940 (CLS)
olycab India is a dominant player in
India’s cables and wires market for
retail and institutional buyers. Polycab
got listed recently on BSE and NSE for the
first time ever, i.e., on April 16, 2019. Its IPO
of `1,345.3 crore was subscribed 52 times,
which is an overwhelming response
according to the management of the
company. Looking at the quarterly trends on
pany reported net sales of `2,241.94 crore, an
increase of 23.74 per cent as against the net
sales of `1,811.86 crore for Q2FY19. PBDT
also expanded by 54.49 per cent for the
Q2FY20 and was `271.44 crore, as compared
to `178 crore for Q2FY19. In Q2FY20, net
profit doubled to `195.41 crore when
compared to `92.55 crore in Q2FY19.
Polycab India is expected to maintain a
strong revenue growth trajectory led by
leveraging distribution strength and launch
DS
DSIJ.in
DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 15
Technicals
NIFTY Index Chart Analysis
Earnings improvement to boost sentiments of market
T
he Indian stock market closed
on a cautious note at the end
of 2019. In the last one year,
the benchmark index, Nifty
gained over 12 per cent in the
year but the broader market
underperformed. The Smallcap-100 index
lost about 9.53 per cent and the Midcap
index lost 4.32 per cent. BFSI and Realty
sectors are the outperformers and PSU
Banks, Media, Metals, Pharma and auto
sectors are the laggards in the past one
year.
The Nifty formed a bull candle with small
shadows like in 2010. The hanging man
kind of pattern formation in half-yearly
and monthly charts is indicating an
utmost caution for the near-term. The
divergence in all time frames and the
weaker indicator set-up is a warning sign
for the market. On the last day of the
decade and the year, Nifty fell by 87 points
and confirmed the prior day bearish
candle. It also added a distribution day.
Even on the weekly chart, after a Doji bar,
it is in process of forming a bearish
engulfing like pattern. As the last week’s
low is very near, just another 50 points
away, it better to be cautious on the long
positions. Only in case of closing above
the 12,295 levels, the uptrend will resume.
Before coming to a conclusion for an
intermediate top, we will try to analyse the
strength of the market with the help of
16 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020
Roadmap for the next 15 trading sessions
Ideas Nifty Levels
Trading above 12,294 on the on a weekly closing
Resistance for the medium-term 12,294
basis would give further momentum to the bulls.
Support for the medium term 12,118
Close below 12,118 on the weekly chart would
change the trend and trigger a retreat.
Directional Movement Indicator (DMI)
and the Average Directional Index
(ADX). In this indicator, the +DMI for
uptrend is indicated in the green line; and
-DMI for downtrend is indicated in the
red line. The blue line is the ADX that
measures the strength of the trend
irrespective of the direction. On the Nifty,
daily chart price has been making higher
highs and at the same time, the +DMI,
green line, indicate the direction of the
trend-making lower highs. This indicates
upside momentum is weakening as
evidenced by the divergence in higher
highs on prices and corresponding lower
highs on +DMI. At the same time, ADX
is also diverging from higher highs in
price, as it is making lower highs. Please
check the lower peaks the blue line has
been making. This is indicative of waning
strength in the trend. The last peak is, in
fact, below the threshold level of 25
indicating serious loss of trend strength.
The broader Nifty 500 index is also
similarly poised. Of course, negative
divergences on +DMI and ADX are as
much imprinted on the leading sector
Bank Nifty as well. In the coming days, if
Equity
Action to be Initiated Probable Targets
12,400-12,500
11,850
ADX makes a lower peak below 25, we
can expect a retracement in Bank Nifty as
well.
As we discussed earlier in this column,
the serious divergences in RSI and
MACD are still a presence in all the time
frames. These divergences are clearly
visible in monthly charts as well. The
Doji candle on a monthly chart is
another sign of tiredness of the
bulls and indecisiveness in the
market. Barring the yearly
chart, all other time frames
formed hanging man and doji
like candles and thereby, are the
clear signs of an intermediate
top in the market.
At this juncture, in any case,
Nifty closes below the last
week’s low of 12,119, means a
reasonable correction is offing.
The market mean average or a
magnet of the market, 20-DMA
is also placed at 12,100. The
recent base around 11,850 levels is
strongest support for now. This is the
level to be watched even for the medium-
term. For now, we cannot project more
than this level as earnings season and the
General Budget is at doorstep.
As there is no sign of improvement in
fundamentals of the economy as well as
no surprises on earnings front in the last
quarter, we are trading at historical high
Price-Earnings (PE) ratio. Only earnings
improvement and stimulus packages
related to various sectors in the budget
can boost the sentiment of the market.
For now, the approach to the market is
cautionary for any new acquisitions and
look for profit booking, partially.
DSIJ.in
DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 17
Technicals Equity
STOCK RECOMMENDATIONS

JUBILANT FOODWORKS ............... BUY ...................... CMP `1,652.60

BSE Code : 533155 Target 1 .... `1,740 | Target 2 ..... `1,765 | Stoploss....`1,570 (CLS)
Jubilant FoodWorks is India’s largest food service
company, which also operates Domino’s Pizza
restaurant chain with exclusive rights. The company
operates nearly 1,300 restaurants across the country.
Technically, the stock has decisively broken out of
6-week flat base pattern. Prior to the flat base, it has
broken a 60-week double bottom or a ‘W’ pattern. The
stock closed at a new lifetime high on Tuesday. The
leading indicator RSI has broken the flag pattern. It is
meeting the Mark Minervini’s trend template criteria
for a bullish set up. The 40, 30 and 10 weekly moving
averages are trending up in a sequence. The trend
strength indicator ADX is clearly trending up and above
31.46 means the stock is in a very strong bullish trend.
The stock is also meeting the CANSLIM characteristics.
Its price relative strength is as high as 91 and EPS
strength is at 85. Greater buyers demand (A-) indicates
the institutional investors’ interest in the stock. The institutional investors increased their stake in the company by 9.08 per cent in
the last quarter. Its Return on Equity (ROE) is at 24 per cent. It is a zero debt company at a decent valuation at current price. Buy
this at `1,652.60 with a stop-loss of `1,570. The target is open to `1,740-1,765.

NESTLE INDIA ................................ BUY ................ CMP `14,789.95

BSE Code : 500790
investors increased their stake in the company by 3.38 per cent in the September quarter. Its double digit growth in earnings and 44 per
cent return on equity made the stock fundamentally attractive. Buy this stock at `14,789.95 with a stop-loss of `13,980. The target is
placed at `15,600-15,800 in a short-term.
Target 1 ..... `15,600 | Target 2 ..... `15,800|Stoploss....`13,980 (CLS)
Nestle India is a subsidiary of Nestle SA, which is India’s
leading food processing company engaged in
manufacturing of milk products and other food products
like beverages and cereals. Currently, the stock is trading
just 2 per cent near to the lifetime highs. After reaching
the life time high of `15,146, it has formed a base at
`13,986 level. The current 10-week flat base pattern is a
consolidation phase in ongoing bullish trend. The stock is
meeting all trend setups including Minervini’s trend
template. The stock is trading above the 40, 30 and 10
weekly averages and the averages are trending up. ADX is
at 47.41, indicating that it is one of the strongest bullish
stocks in the current market. The stock is also meeting all
the CANSLIM criteria. Its price relative strength (RS) is at
89 and the EPS strength is at 80. The buyer demand shows
the institutional interest in the stock. The institutional
DS

*LEGEND: n EMA - Exponential Moving Average. n MACD - Moving Average Convergence Divergence n RMI - Relative Momentum Index
n ROC - Rate of Change n RSI - Relative Strength Index (Closing price as of Dec 31, 2019)
Disclaimer : Above recommendations are based on various technical parameters and any fundamental input has not been considered for the recommendations. Follow strict stop loss for the recommendation.

18 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in

DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 19
Analysis
KRBL Limited
NUTRITIOUS TO YOUR PORTFOLIO!
INTRODUCTION
KRBL Limited is a basmati rice
processing company engaged in seed
development, contact farming,
KRBL’s flagship procurement of paddy, storage,
processing, packaging, branding and
Basmati Rice brand marketing of basmati rice. KRBL’s
agri-business division which consists of
‘India Gate’ is rice, furfural, seed, bran, and bran oil,
etc. is a major contributor to the
considered as a company’s revenue stream. The energy
division comprises of power generated
market leader within from wind turbines, solar power plants
and husk-based power plants. KRBL
its industry space. offers its rice under a range of popular
20 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020
Equity
and commonly seen in household brand
names such as India Gate, Nur Jahan,
Telephone, Train, Unity, Lotus, Lion,
Doon, Aarati, Shubh Mangal, Al Wisam,
Al Bustan, Alhussam, Blue Bird, City
Palace, Necklace, Southern Girl, Taj
Mahal Tilla, and so on.
INDUSTRY OVERVIEW
The global economic growth is expected
to be at 3.5 per cent in 2019 and then,
might increase slightly to grow at 3.6 per
cent in 2020. Indian economy continues
to remain as one of the fastest growing
DSIJ.in

and possibly the least impacted
economy by the recent global turmoil.
Favourable macroeconomic
fundamentals and proactive policy
changes have relatively helped the
economy absorb the external shocks.
However, fiscal expansion remains the
key to accelerating growth inflation rate
witnessed in the past, which has
primarily been facilitated by favourable
supply side factors associated with food
and fuel and also coupled with a lower
demand as wage growth decelerated on
account of the negative output gap.
Having the second largest arable land in
the world, India is considered as the
largest producer of spices, pulses, milk,
tea, cashew, and jute, as well as the
second largest producer of wheat, rice,
fruits & vegetables, sugarcane, cotton
and oilseeds. In India, the total rice
production for 2018-19 is assumed to be
DSIJ.in
around 115.63 million tonnes, which is
2.87 million tonnes higher than the
production of 112.76 million tonnes in
2017-18. Wheat production in 2018-19 is
around 101.20 million tonnes, compared
to 99.87 million tonnes in the previous
year. Total agricultural exports from
India grew at a CAGR of 16.45 per cent
during FY10-18 to reach US$ 38.21
billion in FY18 and stood at US$ 39.13
billion in FY19.
Contributing by nearly 21 per cent to the
global rice production share, India is the
second largest rice producer globally,
after China. The global rice production in
2018-19, increased by 4.7 million tonnes
to 495.9 million tonnes, owing to the
larger crop forecast of China. Total
production of Kharif rice in India is
estimated to be at 99.24 million tonnes
higher by 1.74 million tonnes than the
previous year’s production of 97.50
million tonnes. To support the farmers,
the Indian government increased the
MSP of kharif crops in-line with the
rising cost of production. The support
price of common variety was raised from
`1,750 a quintal to `1,815 a quintal
whereas; the higher quality ‘Grade A’
variety raised from `1,770 a quintal to
`1,835 a quintal. Basmati rice is
considered as the finest variety of rice
produced in India and is grown only
once a year. Even though by volume,
Basmati rice contributes a very small
portion i.e. by 6-10 per cent of the total
rice production in India, it accounts for
around 60 per cent of India’s total rice
exports. Total Basmati rice export for
FY19 stood at 4.41 million tonnes
compared to 4.06 million tonnes in FY18,
registering an increase of 9 per cent. The
key factors are strong demand from Iran,
improvement in average realisations and
consecutively, increasing prices of paddy
over the last three years which has helped
to drive the growth.
AGRI-BUSINESS DIVISION
KRBL has emerged as one of the leading
players in the Indian agri-processing and
marketing industry. KRBL’s flagship
JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL
Contributing by nearly
21 per cent to the global
rice production share,
India is the second
largest rice producer
globally, after China. The
global rice production in
2018-19, increased by
4.7 million tonnes to
495.9 million tonnes,
owing to the larger crop
forecast of China.
Basmati Rice brand ‘India Gate’ is
considered as a market leader within its
industry space. During the year FY19, the
company reported a 13 per cent YoY
volume growth and 17 per cent YoY value
growth on the basis of a strong focus on
branding, customer engagement and
wide distribution network. In FY19,
India Gate brand saw an improvement in
its domestic sales. The division is further
divided into:
Consumer Pack Segment
KRBL’s consumer packaging segment
continued to grow in FY19. KRBL
continued its focus on premium pricing
strategy owing to its product quality
unlike its peers who focus on gaining
market share by lowering the prices.
Overall sales value in FY19 grew by 19
per cent compared to the previous year
and also when compared to 16 per cent
overall industry growth for the segment.
In the retail consumer segment, the
company focussed on creating a strong
brand presence for the Unity rice brand
during FY19.
Bulk Pack Segment
This segment is considered to be a
specially-crafted segment aimed for
21
Analysis
servicing the needs of the institutional
clients like hotels, restaurants and
caterers. Its major clientele include Taj
Hotels, Leela Palaces, Hotels and Resorts,
ITC Hotels, etc. For this segment, overall
sales value in FY19 grew by 22 per cent.
The company has been able to implement
appropriately strategised growth
rationale which proved to be effective as
the segment continued to grow post-GST
implementation as well. KRBL focusses
on providing product varieties without
hampering the product quality across
various pricing points.
Health Food Segment
With a focus on delivering innovative
and tailored solutions for its consumers,
KRBL which is an agri-products led
company launched its ‘Healthy Food’
segment a few years back. The segment
consists of products addressed towards
individual who are cautious of their
health and wish to include healthy foods
in their staple diet. This has helped the
company to tap a new customer segment
and has also enabled it to enhance offtake
in the packaged rice segment as
increasing number of consumers opt for
branded rice from established players
instead of purchasing it from the
unorganised sector. India Gate Basmati
Brown rice, India Gate Non-Basmati
Brown rice and India Gate Quinoa form
this segment.
FINANCIALS
On a consolidated basis for Q2FY20,
KRBL reported 28.52 per cent decrease
in net sales from `1,244.82 crore to
`889.84 crore in Q2FY19. Subsequently,
PBT also dropped by 34.31 per cent to
Peer Comparison (Standalone data)
Company Name Market Cap ROA (%)
Jubilant FoodWorks 21809.20 18.54
Varun Beverages 20437.72 5.80
Godrej Agrovet 9957.37 7.63
KRBL 6714.50 11.88
DFM Foods 1369.21 10.35
22 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020
Equity
KRBL Ltd.
BSE Code : 30813 CMP (`) 285.25
Particulars Amonut (` Crore) profit for FY19 registered a growth by 16
per cent to `503 crore when compared to
Net Sales 4239.75
`434.44 crore gained in FY18. For FY19,
% Change 16.23%
EPS stood at `21.37, a growth of 16 per
Operating Profit 854.64 cent. During FY19, the company
% Change 4.13% achieved a capacity utilisation of 52 per
Net Profit 495.26 cent and produced around 5.49 million
% Change 4.15% metric tonnes. For FY19, KRBL focussed
Equity 23.54 on debottlenecking its operations along
EPS (`) 21.03 with minimising costs.
FV (`) 1.00
P/E (x) 13.57
Dividend Yield (%) 0.71
OUTLOOK
Book Value (`) 123.44
Despite the recent budgetary measures
taken by the government of India to
Trailing Four Quarter Data Standalone Data
maintain a balance between fiscal
CMP as on 31 Dec, 2019
prudence and growth, some uncertain
`165.01 crore in Q2FY20 from `221.82 risks are still there in the economy. India
crore in Q2FY19. As a result, the needs to solidify its investment position
company’s net profit gained for Q2FY20, while maintaining fiscal deficit within the
lowered by 27.87 per cent to `113.39 targeted range. Hence, the need to
crore from 157.21 crore gained in remain steadfast on fiscal numbers has
Q2FY19. The drop in revenues was increased largely from the need to
mainly due to 32,000 metric tonnes of stimulate growth amid pressure to cut
the company’s stock stuck at the port taxes, increased budgetary allocations to
because there was a delay in getting the social sectors, and enhanced
LCs. Hence some orders had to be infrastructure spending that could
rescheduled from Q2FY20 to Q3FY20. pressure public finance. India has set to
With the delivery completed in October achieve a target of doubling farm income
2019, better result are expected in by 2022. It also planned to increase the
Q3FY20. average income of a farmer. The Indian
basmati rice industry is expected to
Despite the gloomy economic continue its upward growth momentum
conditions, FY19 proved to be a during 2019-20, with an expected
considerably favourable business growth of 4-5 per cent on a YoY basis.
environment for KRBL. Net sales grew Even though non-seasonal rains and
by 27 per cent to `4,120 crore in FY19 flooding created problems, Basmati rice
from `3,246.52 crore in FY18. The demand and revenues are expected to be
company reported a rise by 17 per cent positive.
YoY to `2,275 crore in domestic sales
whereas; export sales grew by 42 per cent KRBL intends to double its retail
YoY to `1,845 crore in FY19. The PBT presence in terms of value by 2021 along
expanded by 12 per cent to `733 crore in with exploring new geographical markets
FY19 from `655.01 crore in FY18. Net and locations for expansion. This will be
achieved post-revival and doubling of its
sales to focus more on active retailing in
order to reach out to more retail stores.
ROE (%) ROCE (%) Adjusted PE (x) EV/EBITDA(x) Adjusted EPS (`)
With continuing to expand its presence
27.37 41.77 58.99 28.34 24.46
in the e-commerce business as well,
13.61 13.92 43.26 17.68 12.13 KRBL's growth potential for the
15.52 21.91 47.04 25.45 10.83 foreseeable future looks positive and
20.14 20.88 15.81 10.84 21.38 confident. Hence, we recommend a
28.54 27.76 33.09 16.29 6.54 BUY. DS
DSIJ.in
DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 23
Special Report
Ratio analysis is a crucial step in equity
research. Return on Equity (RoE) is one
of the most popular ‘financial (return)
ratios’ that investors often track while
analysing the quality aspects of any
listed stock. Investors however, often
make a mistake of considering ‘RoE’
objectively, which may lead to poor
investment decision-making.
Anthony Fernandes explain how
best to interpret ‘RoE’ for investment
decision-making not before he explains
in detail how RoE is calculated!

Higher RoE –
Great But Not Always!
I
nvestors who have spent enough time in the market Financial ratios ideally
might confess that, each year teaches you a different are compared with
aspect about the equity markets. At times, market those of its major
rewards momentum investors more than the value competitors. The main RoE tells you what
investors while, in certain phases of the market, we have
seen value stocks do better than high beta stocks and
purpose of financial
ratio analysis is to
percentage of
momentum stocks. At times, we see stocks of certain sector do understand the profit you make
well and then, there is a sectoral rotation and different sector underlying causes of
stocks lead to different market rallies. divergence between a for every rupee of
For sure, the equity market is dynamic, and it is unprofitable to
company’s ratios and
those of the industry.
equity invested in
look at the markets objectively- a mistake most novice Such analysis is also your company.
investors make. On similar lines, a common mistake that most known as the cross-
investors can easily make is looking at the RoE data objectively. sectional analysis and
There is a tendency to give more importance to RoE, than is trend analysis.
required especially when the RoE is high for any stock under
consideration. Having said that, it is observed that very few RoE is one of the most important profitability ratios, often used
investors actually understand how to best interpret RoE as a in tandem with the Return on Invested Capital (ROIC) and
measure of profitability of the company. Return on Capital Employed (ROCE). It is perceived that the
negative RoE companies are to be avoided and the low RoE
What is RoE after all and why is it considered so important companies should be studied with extreme caution, even as the
that is almost religious to study company’s RoE before making preference should be given to those companies which have
any investment decision? more than 20 RoEs.

Return on Equity – RoE as a financial ratio calculates the amount of net profit
earned as a percentage of shareholders equity. RoE is one
To understand the concept of RoE, we first need to appreciate measure which tells us about how well the company has
the importance of financial ratios. utilised shareholders’ money.

24 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in

 We can say that RoE is a function of a company’s Return on
Definitions of Commonly Used Assets (RoA) and the financial leverage that the company is
operating with. Thus, for any company to reflect higher RoE, it
Profitability Ratios has to come from better usage of its assets as is reflected in RoA
Return on Sales (Net income/ Average Total Assets) or optimal use of its
Numerator Denominator leverage.
Gross profit margin Gross profit Revenue
Operating profit margin Operating income Revenue The company has to ensure that the return it generates from
investments is higher than the borrowing cost. As long as it is
EBT (Earnings Before
Pretax margin Revenue able to generate returns higher than the borrowing cost, the
Tax but after interest) company keeps adding value and contributing positively to the
Net profit margin Net income Revenue RoE. The moment, the borrowing cost is higher than the return
Return on Investment on investments, the RoE will be impacted negatively, and this is
Operating ROA Operating income Average total assets the precious reason why investors ought to track the leverage of
ROA Net income Average total assets any company that it intends to invest in.
Short- and long-term debt
Return on total capital EBIT It is quite possible that the company has stable leverage but it is
and equity
ROE Net income Average total equity
not able to improve its utilisation of assets, i.e., there might be
inefficiencies in the asset utilisation which may impact the RoE
Return on common Net income – Preferred
Average common equity negatively. As an investor, an ideal company for investment is
equity dividends the one that uses the leverage effectively and utilises the assets
efficiently.
Du Pont Analysis :
For those with curious minds, RoA can further be decomposed
The Decomposition of ROE just as RoE as below:-
As discussed earlier, RoE simply measures the return a RoE = Net Income/Average shareholders’ equity
company generates on its equity capital. For any long-term
investors, who decides to park his money in quality stocks, it is = Net income/Sales X Sales/Average total Assets X
always interesting to understand what drives the company’s Average Total Assets/Average Shareholders’ Equity
RoE. One of the most widely-used techniques to decompose
RoE and understand what drives the RoE is DuPont analysis. = Net profit margins X Total asset turnover X
The technique is famous by such name because it was Leverage
developed originally at that company. Decomposing RoE by
adopting DuPont analysis would involve expressing the basic The above equation reflects how the RoA is decomposed into
ratio of ‘net income /average shareholders’ equity’ as a product net profit margins and asset turnover ratios (efficiency
of component ratios. Each of these component ratios is an indicator). Leverage helps us understand the solvency of the
indicator of a distinct aspect of a company’s performance that company. The above equation helps us understand that the RoE
affects RoE and hence, it is feasible to evaluate how these is a function of profit margins, asset utilisation and leverage.
different aspects of performance influence the company’s
profitability as measured by RoE. In other words, decomposing To separate the effects of taxes and interest, we can further
RoE is useful in ascertaining the reasons for changes in RoE decompose the net profit margin and write:
over time for any given company as well as ascertaining the RoE = Net income / Average Shareholders’ equity
differences in RoE for different companies in a given time
period. DuPont analysis help investors and analysts understand = (Net income/EBT) x (EBT/ EBIT) X (EBIT/Sales) X
that the company’s overall profitability, measured by RoE, is a (Sales/Average Total Assets) X (Average Total
function of its efficiency, operating profitability, tax burden, Assets/Average shareholders’ equity)
interest burden and use of financial leverage.
= Tax burden X Interest burden X EBIT margin X
Total Asset Turnover X Leverage
DuPont Analysis Equation
RoE = Net Income / Average Shareholders’ equity Thus, we can say that RoE for any company will depend upon
the tax rate, interest rate burden, operating profitability,
= (Net Incomes/Average Total Assets) X efficiency of assets and leverage. This helps investor analyse
(Average Total Assets/Average shareholders’ equity) what factors of the company are driving the RoE, and which
area is a concern from the investment point of view.
= RoA X Leverage

DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 25

Special Report
Empirical evidence: ratio as it uses Net Operating Profit After Tax (NOPAT) as the
numerator.
High RoE vs Low RoE
If we take a look at the RoEs of BSE 500 companies and attempt One can argue that any
to understand the stock returns in 2019, we find that the higher true measure of NOPAT will exclude
RoE stocks on an average have generated slightly better returns profitability should reflect financing costs and
than those reflecting lower RoEs. The below table highlights the in the operations of the instead, use consistent
fact that those companies (127) with RoE greater than 20 on an business without being rules, across all
average have delivered 4 per cent returns on YTD basis while, impacted by the financing
companies and time
those companies between RoE of 20 and 10 have managed to decisions. However, we
deliver a negative 0.25 per cent return. The companies with even have seen that RoE is frames as well as adjusts
lower RoEs i.e between 10 and 0 have shown poor performance greatly influenced by the the impact of usual items
in 2019. The average returns for the companies (122) with RoEs leverage factor. Any and changing
between 10 and 0 have been 13 per cent negative. BSE 500 in the company with an average management
similar period has delivered 7 per cent returns while, BSE Sensex operational performance assumptions.
has generated close to 15 per cent returns. may boost RoE by simply
leveraging more. This may lead to higher riskiness of the firm
BSE 500: Stock performance & RoEs and as an investor, he or she may conclude higher RoE is better
profitability thus, ignoring the higher riskiness of the firm.
  No of Average YTD Average P/E
stocks Returns (per cent) Also, it is possible that an investor may find a quality company
RoE > 20 127 4.08 29.52 with superior operational capabilities with a lower leverage
RoE between 20 and 10 205 -0.25 31.16 reflecting a lower RoE. If an investor objectively decides to
RoE between 10 & 0 122 -13 83.09 invest using RoE data, the investor may miss on the quality
company with operational capabilities only because such
Out of 500 stocks that are constituents of BSE 500, we find that companies reflect lower RoE owing to lower leverage.
there are 127 stocks with RoEs greater than 20. When
compared to the set of companies with RoEs less than 20 but Another advantage that ROIC has over RoE as perceived by
higher than 10, we find that the average P/E for the stocks with several analysts, is the fact that ROIC is highly correlated with
RoEs greater than 20 is lower. Average P/E is higher for those enterprise value/invested capital. The correlation suggests that
set of stocks with lower RoEs as reflected in the table. the companies that improve their ROIC and not RoE, are more
likely to see their stock prices rise. The risk thus, for objectively
Stock performance & RoEs looking at RoE, is that an investor may mistakenly believe an
expensive stock to be of some value and that a value stocks may
  No of Average YTD Average
look extremely expensive and thus avoidable.
stocks Returns (per cent) P/E
RoE > 20 175 3.6 27
RoE between 20 and 10 267 -1.58 29 Conclusion
RoE between 10 & 0 168 -10.83 78
It is easy to calculate RoE and hence, it is popular among
When we attempt to identify the stock price performance for the investors. The simplicity of RoE can be misleading though. The
stocks with higher RoEs versus lower RoEs for listed stocks with biggest mistake that an investor can make is to look at the RoE
market capitalisation greater than `1,000 crore, we find that the data objectively and then make investing decisions.
average stock returns are higher for those stocks which have
higher RoEs. Again, we observe that the average P/E is higher for Though RoE data is quite useful, it does not provide the whole
those set of stocks that reflect lower RoEs and vice versa. picture. If an investor identifies that the RoE is lower for his
company when compared to its peers, the investor can use
Don’t get misled by high RoEs DuPont Analysis system to identify the weakness. The DuPont
analysis system will help investors significantly understand the
The problem with RoE is that investors are led to believe that drivers for the RoE. As is the case with other financial ratios,
the high RoE companies are actually highly profitable, which RoE can be used in conjunction with ROIC, ROCE and other
may not always be the case. Few analysts believe Return on financial ratios to get a holistic picture of the company.
Invested Capital (ROIC) is actually a better measure of
profitability, as it removes the impact of unusual one-time Investors can have a slightly positive bias towards high RoE
charges and hidden off-balance sheet items. The impact of stocks (20 per cent +) when compared to low RoE stocks
financial leverage is minimised to calculate the true profitability however, other fundamental aspects need to be observed
of a firm, in case of ROIC. Few believe that ROIC has a better minutely before making investing decisions.

26 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in

DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 27
Cover Story

Market Strategy
For Budget

The biggest annual event in the form of Budget is staring at us. Often, it is advised to
be cautious before a major market event. Yogesh Supekar and Geyatee
Deshpande discuss what could be the best market beating strategy with just one
month before the major event i.e Budget 2020!

28 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in


Come February 2020 and everyone
including the political class will be
focussing on the state of Indian economy
and start observing how the Finance
Minister tallies the balance sheet of one
of the largest and fastest growing
economies in the world! It could be a
frivolous experience for many bystanders
to understand how the revenues and
expenditure eventually match, however,
for investors, the Budget figures are a
serious business and the announcement
may actually impact their fortunes.
The upcoming Budget is a major event
because many believe that the Indian
economy needs serious intervention and
policy decisions to boost the economy.
All hopes for the economic growth are
now pinned on the government
decisions. The need of the hour is an
expansionary fiscal policy and Budget is
one event that will express the strategy
adopted by the government to boost the
economy. The year 2019 has been an
DSIJ.in
eye-opener for the current government
even as it is widely perceived that the
measures taken lately will help boost the
economic condition of the country. The
economic slowdown and the pain in the India’s first Budget was
various sectors have taken everyone
including the most optimistic ones by prepared on February
surprise. 18, 1860 by James
With the realisation that the economy is W. Mahalanobis.
in doldrums and positive intent shown
on behalf of the government to solve the
murky economic situation, investors are
betting on market-friendly
R K Shanmukham
announcement in the Budget. The Chetty, the first Finance
positive expectation this time around
persists because the finance minister has
Minister of independent
been saying that the government will India presented the
take any measures necessary to achieve
the US$ 5 trillion economy target by
Union Budget on
2025. November 26, 1947.
The noise made by the government has
given a lot of hope to the investors and
the upcoming Budget will communicate
Nirmala Sitharaman is
the true intention of the current the second woman to
government. After all, the Budgetary
decisions and policies will hint if ‘growth’
have presented the
is the focus or is it simply ‘welfare’ which Budget on July 5, 2019.
has been the Budgetary themes so far
under the leadership of Honourable
Prime Minister, Narendra Modi.
could be shifting from companies to
Budget expectation:- shareholders.
Investors want to know whether the
current government is serious of the There is a possibility of even increasing
economic growth or the narrative will the investment limits under Section 80 C
change this time around from welfare to and Section 80 D, even as the deduction
boosting private investments and for interest paid on housing loan under
providing tax incentives to boost the Section 24 could be enhanced.
consumption.
Tax benefits could be announced for the
Market participants are sensing that the first time for the middle-class home
tax incentives may be doled out to small buyers, where the focus could be on
and medium-enterprises but most resolving the liquidity crisis that is
importantly, the announcement that can impacting sectors such as real estate and
impact the pocket of millions of NBFCs.
taxpayers and indeed revive the
sentiment of consumers is ‘reducing the Aviation sector will be the point of
income tax slabs.’ There is a speculation discussion in the Budget and a 100 per
in the market that some constructive cent FDI announcement is on the cards
decision may be taken on long-term during the Budget session. Several steps
capital gains tax (LTCG). Few market to boost investor sentiment and revive
participants are expecting that the the animal spirits are expected from this
burden of dividend distribution tax Budget.
JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 29
Cover Story
Market Outlook 2020
Prasanna Pathak
Head-Equity & Fund Manager, Taurus Mutual Fund.
What is your outlook on equity markets for 2020?
Markets are setting record highs despite macro-economic and
other data points indicating an economic slowdown. This is
more to do with global liquidity and flows into emerging
markets including India. The market seems to be factoring in a
bottoming of earnings and growth, which will only be
validated in the next 2-3 quarters. Slew of measures like
corporate rate cuts, recap of PSU banks package for housing
sector, speedy recovery of NPA and resolution of NCLT cases,
further interest rate cuts by RBI etc should help. Divestments
of a few PSU's and large dividend from RBI should provide
some fiscal space to prop-up the economy. Further measures
to boost domestic consumption and benign global conditions/
liquidity would drive inflows in the markets. We expect
CY2020 to be a year of consolidation.
Do you expect FPIs to invest more in India in 2020?
Foreign Portfolio Investors (FPIs) have turned net buyers of
Indian equities in the last 2-3 months after being net sellers for
Amit Khurana
HCFA, Head of Equities, Dolat Capital
What is your outllook on private banks?
We remain positively biased for the private banks for the next
year. We expect them to gain market share from the challenges
faced by the NBFC lenders and stronger deposit raising
capabilities. Some of the private banks have also faced asset
quality issues since last year. We believe that most of the issues
are behind (lay in the past) now, and fairly well-discounted in
the valuations and sentiment. And some of the bigger accounts
are on the verge of achieving resolution. These factors will help
the private banks to outperform the sector and markets in our
view.
What is your outllook on mid-caps and small-caps?
Given the headwinds that a large number of corporates
continue to face on the earnings, balance sheet and demand;
we are not yet in a position to make a macro call on mid-caps
and small-caps. However, we do believe that some of the
sectors / stocks have bottomed out. Over the next few months,
we will look for signs of consolidation of their businesses and
core strengths. It will be the starting point of the next uptrend
to us for their earnings and valuations.
Which sectors may surprise positively in 2020?
It’s difficult to call out that at this stage. We feel that the
30 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020
quite some time. As explained above, it is a combination of
global liquidity and domestic factors. Slew of government
measures coupled with expectations of bottoming out of
earnings and growth, have led to positive sentiments on Indian
markets. Earnings recovery, better Fy21 outlook, further
measures from the government to boost the economy, may
lead to an improved FPI activity in India in 2020.
Which sectors have shown momentum in earnings
during FY20?
There have been positive surprises from corporate banking
space (private as well as PSU), cement, pharma, retail sectors
while metals, auto & auto ancillary were disappointing. Also,
the consumption segment, though robust for first half of FY20,
is showing signs of fatigue. We believe that the overall earnings
are in the process of bottoming out and we expect a further
improvement in the earnings in FY21.
bottoming out is in process – whether that takes one quarter or
two will determine our ability to call that out.
But we are keeping a watch on the Cement and Real Estate
(residential) to look for lead signals of recovery. In our view,
they will set the first visibility. We are also closely watching
the telecom space where the government supports and price
hike by players could significantly impact the earnings
positively. It was not very far ago that these players were facing
questions on their very existence and now, we are looking at
them in a very different light. This could be played out well in
the next year.
Which sectors may surprise negatively in 2020?
Not much in particular at this stage. We feel that most of the
sectors have bottomed out. If at all, we see only relative risks
from sectors / stocks which are of significant premium to
markets. Their performance will have to justify such levels, and
any disappointments from them could be a negative surprise.
The other perspective to this is the consumer demand that has
been severely impacted due to the muted income growth. Will
that continue to be the case – and if it does, it will imply a
sharp deceleration for a lot of related sectors – durables,
staples, autos, etc.
DSIJ.in
Market performance during Budget periods
A look at the data for Sensex performance for last 11 years, we find that Sensex has on an average managed to close in red on the
day of Budget. The average return is negative 0.6 per cent for Sensex on the day of Budget announcement. Running up to Budget
or what we call a pre-Budget market performance, we find that on an average, the Sensex has generated negative 1.63 returns in
one month prior to Budget. In the last two years, we find Sensex has gained in 2017 and in 2018, one month prior to the Budget
day. However, three months prior to Budget and six months prior to Budget, the Sensex has managed to deliver, on an average,
5.26 per cent and 7.46 per cent returns, respectively.

Immediately after the Budget day, in one month, the Sensex has generated 1.26 per cent returns while in three months and six
months after the Budget day, Sensex has delivered 3.6 per cent returns and 3.92 per cent returns, respectively.
Before Budget Day of Budget After Budget
Budget Date 6 Months 3 Months 1 Months Budget day return 1 Month 3 Months 6 Months
6th July 2009 35.87 33.3 -4.24 -5.83 10.47 20.76 26.05
26th Feb 2010 4.18 -2.52 -2.09 1.08 7.4 -0.25 10.94
28th Feb 2011 -0.97 -6.86 -3.11 0.69 6.28 2.48 -11.08
March 16,2012 -4.94 12.75 -3.79 -1.19 -1.8 -2.96 5.71
Feb 28,2013 6.98 9.67 -6.18 -1.52 -0.14 6.89 -4.59
07/10/14 22.23 11.7 -0.82 -0.28 -0.17 3.64 -18.19
Feb 28,2015 10.22 2.33 -0.67 0.48 -6.48 -6.32 -12.42
Feb 29,2016 -12.85 -11.96 -7.51 -0.66 8.25 15.88 21.31
02/01/17 0.49 0.95 5.69 1.76 2.45 6.31 15.75
Feb 01,2018 10.23 6.86 6.19 -0.16 -5.18 -2.08 4.5
July 05,2019 10.7 1.68 -1.42 -0.98 -7.12 -4.66 5.17
Average 7.46 5.26 -1.63 -0.6 1.26 3.6 3.92
All figures in per cent

Market strategy @ Budget 2020

As the world economy attempts to move towards sustainability
and India follows suit, one can expect government to focus on
green energy and electric vehicles. Energy stocks and select
automakers may be in demand running up to the Budget
announcement day. The housing finance companies and select
NBFCs will be in limelight as various sector-related
announcements are expected in the Budget even as the
government is expected to make announcements related to
easing of liquidity crisis in India.
The insurance companies and asset management companies
could be the biggest beneficiaries in case the income tax rate
slabs are cut and the investments limits are increased using
various sections for tax deductions. Expect a positive
momentum in these counters with Budget announcement in
view.
The government is likely to assume a GDP growth of 6-6.5 per
cent for FY21 and the earnings outlook is strong for the
coming year. The market recovery could be protracted
however, the markets may remain enthused on back of global
optimism and tax cut expectations. Financials, healthcare and
industrials can be expected to be in limelight, even as the
liquidity crisis gets a special attention.
Railways and fertiliser are other sectors that are always in focus
around Budget announcement month. Watch out for fertiliser
and railway stocks for some momentum. Agriculture stocks
will see above average traction as the sector is always in
limelight during Budget sessions.
Sensex is up by 15 per cent on YTD basis in 2019 while, the
broader markets underperformed with BSE Midcap down by 3
per cent and BSE Small-cap index down by 8 per cent in 2019.
Running upto Budget, there is a less likelihood that broader
markets will suddenly outperform the major indices. So, it may
be a good strategy to stock with winners and create long
positions in the sectors that may experience positive
announcements in the Budget.
Even though the positive expectations are built up in the Budget
this time around, investors and traders should take heed from
the fact that the government will have to improve its revenue
situation and hence, there will be a limitation in the
expansionary fiscal policy. By announcing corporate tax rate cut,
the revenue forgone is around `1.45 lakh crore. This will
influence the overall revenue collections of the government. It is
a well-known fact that the collections from direct taxes and GST
have been below estimates. To achieve the overall tax collection
target of `16.49 lakh crore is going to be a daunting task.
So play long in the market however, be nimble-footed and
book profits as soon as you get an opportunity near the Budget
day.

DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 31

Cover Story
Vinay Paharia
Chief Investment Officer, Union Asset Management Company Pvt. Ltd.
How do you see market performing in 2020?
Nifty Index currently trades at a price which is at a small
premium to its current fair value based on our internal
research. Small and Midcaps have also corrected significantly
from their previous peaks and are now trading at reasonable
valuations. Hence, we expect the market to deliver modest
returns, mainly driven by growth in fair value over the
medium-term. According to us, the driver of fair value growth
in the medium-term could be a) Government introducing
measures for structural economic reforms, b) Cyclical uptick in
economy along with improved capacity utilisation, which can
result in earnings growth getting a boost from operating
leverage, and c) Reduction in cost of equity led by
accommodative monetary policies – both locally and globally.
Which sector are you betting on to do well in 2020?
We expect Telecom, Utilities and Financial Services sectors to
outperform over the medium-term. The Telecom sector is
expected to benefit from recently announced sharp increase in
tariffs which has been implemented by the entire industry. We
expect this to improve the sector’s health and should hence,
reflect in its outperformance. Utilities sector includes
companies with regulated businesses, which normally generate
fixed returns on capital. We think the sector is deeply
undervalued and could be re-rated in the medium-term. The
financial services sector is a significant beneficiary of the
recently announced corporate tax reduction. Due to an increase
in its return on equity, we expect the fair valuation multiple for
the sector to rise, which could result in its outperformance.
On the other hand, we expect the Consumer Staples, Consumer
Discretionary and Materials sectors to underperform. The
After 2015-16, for the first time, the upcoming Budget will be presented on a
Saturday and the coming Budget will be the first one incorporating the
recommendations of the fifteenth Finance commission.
Conclusion
It is clear that the infra stocks, NBFC stock, Housing Finance
Companies (HFCs), financials, PSU banks, Fertiliser stocks
and Agriculture stocks may be in focus during the Budget
session. Prime Minister Narendra Modi wants India to
become a manufacturing and export hub for electronics and it
is on his top priority list to make India forex positive. So the
export oriented stocks may show some traction as the Budget
arrives.
32 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020
current weakness in consumer spending is likely to hit both
Consumer Staples and Discretionary sectors, where the
valuations are not supportive either. We expect the materials
sector to underperform due to an ongoing weakness in the
global economic growth and trade wars, which could reflect in
softness in end commodity prices. Also, most companies in the
sector find it difficult to generate respectable returns on equity
on a sustainable basis, which makes us wary of the sector.
What is your outlook on PSU banks for 2020?
PSU banks are essentially corporate lenders, which have
experienced significant pain over the past few years due to an
impact of credit costs. We think the cycle of rising credit cost is
behind us. Besides, most of the banks have undertaken a
significant repair of their balance sheets, making them ready for
the next growth cycle. The valuations in the space remain
attractive and hence, the overall outlook for PSU banks is
positive in the medium-term.
What are the key risks facing equity markets in
2020?
The key risks to markets are a) Slowing domestic and global
economy and b) Higher fiscal and current account deficit and
c) Rise in interest rates in developed markets.
What sought of returns can investors expect from
equity markets in 2020?
We expect Nifty Fair Value to grow at a modest pace over the
next five years. We expect the market’s return to track the
growth in its fair value. Thus, Investors can expect a modest
return from the market, albeit with a higher volatility.
While there are many reasons to be gung-ho about the Budget
day this time around, several rounds of tax cuts and
exemptions have made GST revenue deficit instead of being
revenue-neutral. Revenue has to come from somewhere and it
is the industry which will be taxed. Luxury items could be the
target this time and may be taxed at a higher rate.
Stay long on financials and consumer facing stocks along with
healthcare stocks for the pre-Budget period and beyond for
market beating returns. DS
DSIJ.in
Agriculture ........................................................... 38
Automobile .......................................................... 39
Auto Ancillary...................................................... 41
Banks..................................................................... 43
Cements................................................................ 46
Chemicals.............................................................. 47
Construction......................................................... 50
Consumer Durables............................................. 52
Electricals & Electronics..................................... 53
Engineering.......................................................... 54
Entertainment...................................................... 56
Fertilizer............................................................... 57
Finance.................................................................. 58
FMCG...................................................................... 62
Hospitality............................................................ 63
It............................................................................. 65
Metals.................................................................... 67
Petroleum............................................................. 68
Pharma................................................................. 70
Plastic Products................................................... 72
Power.................................................................... 74
Services................................................................. 75
Textile.................................................................... 78
Miscellaneous...................................................... 80

Methodology
We bring you the Vital Financial Data of Top 1,000 companies categorised by market capitalisation, as these are the stocks where
liquidity is more, and they represent a substantial portion of trade. These companies are then categorised in 24 sectors to provide you
an insight on the general margin trend of the financial performance for the first-half of FY20. All data has been sourced from Accord
Fintech Pvt Ltd (Ace Equity). The focus of financial data was more on the revenue and profitability as many companies do not
provide balance sheet on half-yearly basis. We hope that our readers get an overall perspective of the different sectors so that, they are
able to take stock and sectoral call effectively!
Compiled by - Amir Shaikh, Apurva Joshi, Geyatee Deshpande, Nidhi Jani, Pratik Shastri, Anthony Fernandes, Rishikesh Gaikwad

34 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in

Communication Feature
Can you please comment on the benefits
that Raymond Ltd and Raymond Lifestyle
will be having from the demerger?
Having embarked on a transformation journey
through Raymond re-imagined for value
creation, the demerger of Raymond Lifestyle
business will enable the demerged and the
resulting company to have a focussed strategy
and specialisation for a sustained growth.
Having said that, the demerger has three pillars
to it, that is, Strategic, Operational and
Financial.
Strategic: Positioning lifestyle as an
independent branded consumer business that
is scalable and having a focussed strategy and
specialisation for sustainable growth and
profitability.
Operational: The demerger will lead to
simplification of the group structure thereby,
creating operational efficiencies. This would
also lead to operating cash flows for repaying
further debt along with an improvement in the
ROCE from existing 18 per cent. As the new
company will be under the new low corporate
tax regime, it will bring tax efficiencies as well.
Financial: The demerger will lead to unlock the
shareholder value and will provide a choice to
investors of creating investor opportunities in
both the companies.
What are the key growth drivers for your
company?
Post the de-merger; both the companies will
have their independent growth paths. As we
have stated that after the demerger, lifestyle
business will have three businesses that are
Branded Textiles, Branded Apparel and
Garmenting.
36 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020
The demerger of the Lifestyle Business will
enable the Demerged and the Resulting Companies to
have focused strategy and specialization for sustained
growth and the ability to attract investors for better
access to capital.
Sanjay Bahl, Group CFO, Raymond Ltd.
Branded Textile: The key growth driver for this
segment will be asset-light franchise-led retail
network expansion across the country,
especially in tier 4 towns and below. This will be
coupled with our strong capabilities in product
innovations and differentiated offerings. The
focus will also be in enhancing the capacity and
capability of the tailoring ecosystem along with
scaling up our institutional business.
Branded Apparel: The growth will be driven by
our ongoing focus on sharpening the product
portfolio and enhancing the core proposition
as a full wardrobe solution provider. Ethnics
wear category is also a key growth driver as we
see a tremendous potential here. From the
channel perspective, the growth is driven by
addition of doors in MBO channel as well as
with EBO channel growth having an omni-
channel strategy.
Garmenting: With stabilisation of Ethiopian
operations, we are scaling up our Made-to-
Measure services across various brands in
international markets. We are also leveraging
the opportunity to increase the exports to
high-value markets of USA, Europe & Japan.
The existing Company will be predominantly a
real estate company with ~20 acres of project
under development and another ~80 acres
available for future monetisation. I am happy
to state that we have received a good traction
with 700+ flats, sold within 9 months of launch
and the project is expected to be cash flow
positive. For FMCG business, we see a high
potential with increased consumers spend in
the category as the business is on a growth
trajectory, and can possibly become an
attractive proposition for listing in the coming
years. The existing business is also well-
supported by stable and cash flow generating
B2B businesses of high value cotton shirting
and engineering business.
What is the land monetisation strategy
and what key challenges do you oversee
that Raymond Ltd, the real estate division
will have to overcome?
We have ~100 acres of land available with us
for monetisation, out of which, we have
commenced a residential project on the ~20
acres with over 70 per cent of the inventory of
2BHK apartments sold. We are expecting the
top-line of the overall 20 acre development to
be around `4,200 crore with 25 per cent + PAT
margins in 4-5 years. For the balance 80 acres
of land, we are open to all the options of
monetisation.
The overall real estate market has been quite
sluggish but having said that, our project is
located on the prime residential area of Thane
and with excellent connectivity and planned
infrastructure, we have received quite a
phenomenal response. However, the other
challenges include increased competition from
well-established players in Thane as well as an
increase in input prices and a few regulatory
changes.
What are your views on the current
economic condition in the country? How
deep of an impact will these have on the
long-term profitability of both the
businesses?
The market continues to remain sluggish as the
domestic consumption remains impacted, and
the consumer sentiments remain subdued and
we expect the balance as part of the fiscal to
remain modest. However, with strong
measures taken by the government, we believe
that from a long-term perspective, the
consumption story is still intact.
As far as Raymond is concerned, we are
94-year-old conglomerate and have witnessed
such tests in the past as well. I would like to
state here, that we have been taking the right
steps in our transformational journey and have
been mindful of the challenges. As an
organisation, our fundamentals are very strong
and as we are optimistic about the revival in the
economy, we are confident that the profitable
growth momentum at Raymond will continue.
DSIJ.in
Special Supplement
Economic Review For The First Half Of 2019 - 2020
Sector Sponsor
2017-18 due to the contribution by the dairy sector, which
witnessed an expansion of 72 per cent in exports from `1,955
crore in 2018 to `3,376 crore in 2019 and also pulses, which
increased by 22 per cent from `1,470 crore in 2018 to `1,795
crore in 2019. Overall, the export value of basmati rice and
poultry products saw a slight increase while that of non-
basmati rice, wheat and buffalo meat decreased.

The largest company in the sector in terms of market cap, Tata

Global Beverages reported a 4.71 per cent increase in its net
sales of `3,731.19 crore in H1FY20 from `3,563.46 crore in
H1FY19. The company’s net profit grew by 13.01 per cent YoY
to `292.34 crore in H1FY20 on aggressively expanding its
product portfolio. E.I.D. Parry (India) which is engaged in

Agriculture
manufacturing and marketing of sugar and bio-products
posted a significant growth in its profits for H1FY20. Kaveri
Seed Company reported the net sales of `732.90 crore for
H1FY20 which resulted in its net profit growing by 6 per cent to

I
n India, the agricultural sector has occupied nearly 43 per
cent of the country’s geographical area. India is one of the
largest producers of spices, pulses, milk, tea, cashew and
jute. Also, it is the second largest producer of wheat, rice, fruits
& vegetables, sugarcane, cotton and oilseeds. In the global
production of fruits and vegetables, India ranks second while, it
tops the list of the largest producer of mango and banana.
H1FY20 witnessed a huge disruption and damage to agriculture
due to untimely rainfalls and flooding in many areas, thus
indicating negative sentiments in the sector. According to
Economic Survey 2019, the growth rate and Gross Value Added
(GVA) by agriculture and allied sectors had performed better
from a negative 0.2 per cent in 2015 to 6.3 per cent in 2017 but
registered a slow down to 2.9 per cent in 2019. Exports of
agricultural commodities and processed food increased by 7
per cent in 2019 to `1.28 lakh crore, from `1.20 lakh crore in
`235.87 crore from `222.52 crore in H1FY19.
The government puts a lot of emphasis on developing the
agriculture sector when it is constantly affected by various
factors such as climate change, population growth, food security
concerns, etc. These challenges help the sector to have more
innovative approaches for crop yielding in order to get better
farming results. Currently, Artificial Intelligence (AI), which has
proved to be successful in other sectors, is being pondered upon
by the government as an important tool and also, leveraged this
technology in developing the sector. It signed an MOU with
IBM to use AI for crop selection and crop monitoring with the
use of satellite technology in monitoring the sector. Ban on
plastic bags and products in many states in the country and an
overall shift in the attitude towards using eco-friendly,
biodegradable materials has opened up a huge opportunity for
alternate products from agricultural sources. The demand
growth in agriculture sector is expected to pick up in H2FY20.

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Agriculture
Bombay Burmah Trading Corp. 6,971.61 116.72 -15.81 -26.77 117.47 -7.54 -14.77 -0.64 -109.79 52.64 -81.28
Goodricke Group 418.18 416.98 72.43 62.08 362.60 63.84 60.31 15.00 13.46 1.36 2.93
Kaveri Seed Company 3,015.99 732.90 244.57 235.87 657.08 211.38 222.52 11.54 15.70 -3.60 6.00
Nath Bio-Genes (India) 642.24 187.64 43.21 38.95 152.21 33.94 29.62 23.28 27.33 -3.18 31.49
VenkyS (India) 2,502.19 1,719.96 98.90 75.43 1,402.40 138.98 76.53 22.64 -28.84 72.35 -1.44
Aquaculture
Apex Frozen Foods 1,087.66 491.24 49.33 30.23 494.80 57.18 41.04 -0.72 -13.72 15.07 -26.32
Floriculture
Trescon 432.82 0.00 -0.39 1.29 16.40 1.98 1.44 -99.98 -119.75 100.12 -10.28
Solvent Extraction
Gujarat Ambuja Exports 1,557.76 1,919.80 100.94 37.23 1,580.46 171.94 86.19 21.47 -41.29 106.91 -56.80
Manorama Industries 368.33 95.34 24.49 15.23 37.69 14.56 8.76 152.98 68.18 50.42 73.82
Sugar
Avadh Sugar & Energy 537.49 915.66 118.58 20.62 1,076.04 96.28 17.43 -14.90 23.17 -30.91 18.26
Bajaj Hindusthan Sugar 715.28 3,082.03 149.87 -109.32 1,457.28 -75.17 -184.48 111.49 299.37 -206.08 40.74

38 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in

 Economic Review For The First Half Of 2019 - 2020

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Balrampur Chini Mills 3,853.30 1,805.47 330.42 204.40 2,017.53 270.50 164.50 -10.51 22.15 -26.74 24.26
Bannari Amman Sugars 1,474.67 699.36 93.33 28.23 480.45 83.82 33.73 45.57 11.36 30.72 -16.31
Dalmia Bharat Sugar & Industries 719.96 992.81 112.11 109.22 1,025.26 132.99 97.86 -3.17 -15.70 14.87 11.61
Dhampur Sugar Mills 1,451.90 1,631.01 148.16 60.52 1,267.19 162.66 60.08 28.71 -8.91 41.31 0.72
Dwarikesh Sugar Industries 553.61 554.87 54.67 24.66 640.91 64.90 38.83 -13.43 -15.77 2.79 -36.49
E.I.D. Parry (India) 3,554.94 8,802.95 820.37 378.02 9,201.01 678.62 91.68 -4.33 20.89 -20.86 312.33
Shree Renuka Sugars 1,520.04 2,281.20 -89.40 -195.00 1,886.60 -110.50 -453.90 20.92 19.10 -49.45 57.04
Triveni Engineering & Industries 1,690.99 1,873.35 268.88 141.22 1,394.36 132.98 60.96 34.35 102.20 -33.55 131.66
Uttam Sugar Mills 396.45 626.41 23.12 3.37 518.88 73.76 24.05 20.72 -68.66 285.15 -85.99
Tea/Coffee
CCL Products (India) 2,560.79 571.86 130.98 76.74 585.21 139.96 86.64 -2.28 -6.41 4.42 -11.43
Tata Coffee 1,711.75 947.90 158.26 74.97 878.09 125.03 67.27 7.95 26.58 -14.72 11.45
Tata Global Beverages 19,741.74 3,731.19 499.45 292.34 3,563.46 415.42 258.69 4.71 20.23 -12.91 13.01
CCL Products (India) 2,560.79 571.86 130.98 76.74 585.21 139.96 86.64 -2.28 -6.41 4.42 -11.43
Tata Coffee 1,711.75 947.90 158.26 74.97 878.09 125.03 67.27 7.95 26.58 -14.72 11.45
Tata Global Beverages 19,741.74 3,731.19 499.45 292.34 3,563.46 415.42 258.69 4.71 20.23 -12.91 13.01

The government’s effort to reduce

pollution is likely to act as a game-
changer for the auto industry in the
long-term as it is likely to shift to
electric vehicles.

Automobile with discounts, improvement in the availability of credit, and

revival in rural demand.

To analyse the financial performance of the industry, during the

T
first half of FY20, we have taken data of 14 companies from the
he automobile industry, which is one of the key auto industry. The aggregate sales of these companies in
industries driving India’s GDP, has been going through a H1FY20 dipped 11 per cent to `2,47,308 crore. The PV market
bumpy ride in recent times due to the weakening leader, Maruti reported nearly 18 per cent fall in its net sales to
demand. The auto sales in recent months have been under `36,705 crore in H1FY20. Hero MotoCorp, a market leader in
pressure as seen in the chart, due to various reasons, such as the the two-wheeler segment too reported nearly 13 per cent YoY
increased ownership cost, liquidity crunch amongst the NBFCs, fall in net sales to `15,601 crore. Also, commercial vehicle
weak rural demand, etc. maker Ashok Leyland and Tata Motors reported ~31 per cent
and 9 per cent YoY fall in net sales respectively. Out of these 14
However, in the above data, we can see that post turbulence companies, only Atul Auto and Bajaj Auto managed to post
time in the last few months; the industry is witnessing green marginal sales growth of 2 per cent and 0.4 per cent,
shots. This can be attributed to the recent festive season coupled respectively.

DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 39

Special Supplement
Economic Review For The First Half Of 2019 - 2020

Vehicle Registration
2W CV PV 3W

150

100

50

0
01/01/2019 03/01/2019 05/01/2019 07/01/2019 09/01/2019 11/01/2019

Data for August 2019 is not published by the FADA  Source: FADA, Base: 100

norm which would act as a cushion in short-term. However,

The industry, which has been witnessing a tough ride in the last
few months, has started to see some sign of demand revival in
the last two months, however, going forward, the industry has
another obstacle to clear i.e. new BS-6 norms, which is set to be
effective from April 1, 2020. Due to an enhanced safety and
environmental norms, the BS-6 compliant vehicles are likely to
be costlier than earlier vehicles. The transition to BS-6
compliant vehicles is expected to be smooth as this time, the
industry players have already started manufacturing vehicles
that are compliant to new norms.
Further, sufficient time and declining inventory are expected to
result in smooth transition to new BS-6 norms. Notably, there
might be some pre-buying before the implementation of BS-6
extended monsoon may dampen the rural demand in the near
term.
Meanwhile, the recently announced corporate tax cut is likely
to help company to either reward shareholders or pass on the
benefit to the customers which in turn, can lead to an
improvement in demand.
Going forward, normalized inventory level, better rabbi crop to
revive rural demand and improving liquidity situation are likely
to aid in short-terms for the auto industry. Further, the
government’s effort to reduce pollution is likely to act as a
game-changer for the auto industry in the long-term as it is
likely to shift to electric vehicles.

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Automobile Two & Three Wheelers
Atul Auto 548.58 319.92 38.32 28.95 313.79 37.76 25.23 1.95 1.48 0.46 14.74
Bajaj Auto 93,468.44 15,463.14 2,475.95 2,423.98 15,406.08 2,622.66 2,171.64 0.37 -5.59 6.32 11.62
Eicher Motors 60,214.81 4,574.39 1,155.90 995.31 4,955.92 1,538.89 1,001.00 -7.70 -24.89 22.88 -0.57
Hero MotoCorp 48,751.87 15,600.97 2,259.11 2,132.14 17,900.76 2,756.00 1,885.45 -12.85 -18.03 6.32 13.08
TVS Motor Company 21,880.14 8,816.46 737.74 397.31 9,147.17 734.64 357.92 -3.62 0.42 -4.02 11.01
Automobiles - Passenger Cars
Mahindra & Mahindra 65,699.00 23,998.77 3,013.72 3,526.42 26,508.48 3,476.59 2,870.42 -9.47 -13.31 4.44 22.85
Maruti Suzuki India 218,728.62 36,705.10 3,654.10 2,794.10 44,892.60 6,782.40 4,215.70 -18.24 -46.12 51.76 -33.72
Automobiles-Tractors
Escorts 7,564.83 2,746.85 269.14 192.09 2,909.64 343.03 222.21 -5.59 -21.54 20.32 -13.55
HMT 1,661.65 6.98 -8.08 16.88 7.85 -5.04 16.43 -11.08 -60.32 44.54 2.74
VST Tillers Tractors 931.95 300.56 18.44 17.92 290.13 21.18 23.57 3.59 -12.94 18.99 -23.97
Automobiles-Trucks/Lcv
Ashok Leyland 23,308.09 9,613.36 765.55 269.09 13,858.11 1,447.20 829.68 -30.63 -47.10 31.14 -67.57
Force Motors 1,444.58 1,557.45 108.07 34.50 1,771.89 154.27 80.62 -12.10 -29.95 25.47 -57.21
SML Isuzu 848.40 705.47 21.76 -1.16 748.04 41.02 12.37 -5.69 -46.95 77.78 -109.38
Tata Motors 50,413.11 126,898.94 9,902.45 -3,258.49 139,193.37 10,681.09 -3,263.94 -8.83 -7.29 -1.66 0.17

40 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in

 Economic Review For The First Half Of 2019 - 2020

Domestic Product (GDP), 25 per cent to its manufacturing

Sector Sponsor GDP.

The auto-components industry is expected to follow Original

Equipment Manufacturer (OEM) in adoption of electric vehicle
technologies. The global move towards the electric vehicles will
generate new opportunities for automotive suppliers.
A 100 per cent FDI allowed under automatic route for auto
component sector will be another boost to the sector, which is
currently suffering due to BSVI transition and NBFC crisis.
Domestic OEM supplies contribute to 55.97 per cent of the
industry turnover followed by exports (26.20 per cent) and
domestic aftermarket (17.82 per cent). The Indian auto
component industry aims to achieve US$ 200 billion in
revenues by 2026.

Policies such as Automotive Mission Plan 2016-26, Faster

Adoption & Manufacturing of Electric Hybrid Vehicles (FAME,
April 2015), NMEM 2020 are likely to infuse growth in the auto

Auto Ancillary
component sector of the country. Both domestic and export
markets are almost similar in terms of potential share by
different product types. For example, Engine & Exhaust
components, along with Body & Structural parts, are expected

O
ver the last decade, the automotive components
industry has registered a CAGR of 10.06 per cent while,
exports have grown at a CAGR of 8.34 per cent. Auto
components production may increase by 12-14 per cent due to
a robust growth in the domestic and export market. Indian tyre
industry expects a 7-9 per cent growth over FY19-23. The
capital expenditure by the domestic automotive component
manufacture is expected at around `24,000 crore over FY19 and
FY20.
The growth of global OEM sourcing from India & the increased
indigenisation of global OEMs is turning the country into a
preferable designing and manufacturing base. The Indian
auto-components industry is expected to register a turnover of
US$ 100 billion by 2020 backed by strong exports. The auto-
components industry accounted for 2.3 per cent of India’s Gross
to make up 50 per cent potential domestic sales as well as
exports in 2020.
We analysed the performance of 93 companies. The companies
that showed the high sales growth on YoY basis in H1FY20 over
the same period last year include JTEKT India Ltd (21.77 per
cent), Shanthi Gears Ltd (17.55 per cent), Motherson Sumi
Systems Ltd (9.49 per cent) and MRF Ltd (7.37 per cent). The
companies that showed the most decline in sales in the same
period include names like Maharashtra Scooters Ltd (-46.25 per
cent), Jamna Auto Industries Ltd (-40.31 per cent) and
Automotive Axles Ltd (-36.38 per cent). The transition to BSVI
norms increased insurance cost and NBFC crisis has affected
the auto sector in the recent past. This has resulted in muted or
declining sales in auto ancillary in H1FY20. Going forward
with a revival in the auto sector, auto ancillary sales would
bounce back.

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Auto Ancillary
Automobile Corp. of Goa 335.60 204.13 12.30 11.72 229.06 15.54 11.64 -10.89 -20.86 12.61 0.64
Automotive Axles 1,251.95 618.50 65.71 30.86 972.17 114.78 61.05 -36.38 -42.75 11.12 -49.45
Banco Products (India) 723.77 772.15 69.48 45.83 887.66 126.70 67.91 -13.01 -45.16 58.63 -32.51
Bosch 45,232.33 5,091.50 819.83 382.64 6,413.26 1,224.41 850.97 -20.61 -33.04 18.57 -55.03
Endurance Technologies 14,824.46 3,680.43 632.42 334.67 3,797.16 551.19 249.80 -3.07 14.74 -15.52 33.98
Enkei Wheels (India) 517.92 213.15 4.32 -11.03 250.32 13.54 -0.51 -14.85 -68.12 167.12 -2071.85
Federal-Mogul Goetze (India) 3,641.96 561.50 51.22 21.41 682.33 100.54 46.48 -17.71 -49.06 61.54 -53.94
Fiem Industries 556.73 730.91 80.97 29.97 754.85 75.86 27.38 -3.17 6.73 -9.28 9.47
Gabriel India 1,780.47 989.82 72.52 40.56 1,056.15 100.50 55.66 -6.28 -27.84 29.88 -27.12
GNA Axles 583.54 514.16 81.74 40.48 439.83 67.50 30.25 16.90 21.10 -3.46 33.82
Hi-Tech Gears 308.45 284.28 31.01 7.33 334.70 41.22 11.74 -15.06 -24.78 12.92 -37.59

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M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
India Nippon Electricals 814.26 250.20 33.10 34.83 259.07 39.41 27.29 -3.42 -16.01 14.99 27.63
IST 437.29 8.53 0.60 4.06 13.04 0.63 4.34 -34.56 -4.48 -31.49 -6.65
Jamna Auto Industries 1,854.85 662.87 64.83 26.77 1,110.56 143.31 75.53 -40.31 -54.76 31.94 -64.55
Jay Bharat Maruti 517.87 853.90 68.95 11.23 1,055.68 90.77 29.85 -19.11 -24.04 6.48 -62.39
JBM Auto 1,171.85 785.70 95.27 29.83 874.04 105.95 37.87 -10.11 -10.08 -0.03 -21.23
JTEKT India 2,024.30 792.01 63.66 15.95 650.43 64.32 27.27 21.77 -1.04 23.04 -41.51
LG Balakrishnan & Brothers 776.18 727.75 95.07 50.46 790.97 109.30 49.59 -7.99 -13.02 5.78 1.75
Lumax Auto Technologies 708.84 581.17 52.45 31.52 700.75 68.72 37.37 -17.06 -23.67 8.66 -15.66
Lumax Industries 1,193.00 831.05 80.92 29.96 1,013.98 81.29 35.85 -18.04 -0.46 -17.66 -16.42
Maharashtra Scooters 5,053.71 4.30 -3.16 70.59 8.00 -2.36 66.62 -46.25 -33.90 59.86 5.96
Minda Corporation 2,187.01 1,443.71 135.35 52.64 1,551.56 155.37 71.10 -6.95 -12.89 6.81 -25.96
Minda Industries 9,148.75 2,799.33 333.82 108.17 2,951.54 359.39 164.73 -5.16 -7.11 2.11 -34.33
Motherson Sumi Systems 46,342.68 32,716.73 2,403.24 774.07 29,880.43 2,540.20 1,051.26 9.49 -5.39 15.73 -26.37
Munjal Auto Industries 458.00 574.64 22.12 7.10 615.29 31.91 15.01 -6.61 -30.67 34.70 -52.68
Munjal Showa 500.14 740.13 37.60 27.20 908.04 54.85 36.39 -18.49 -31.44 18.88 -25.27
Precision Camshafts 377.57 223.31 47.15 25.77 192.36 37.90 14.25 16.09 24.43 -6.70 80.78
Pricol 454.08 636.92 40.72 -36.97 710.96 57.71 7.75 -10.41 -29.43 26.96 -577.39
Rane (Madras) 379.91 675.11 28.96 -21.03 794.13 64.73 10.90 -14.99 -55.26 90.01 -292.99
Rane Brake Lining 538.69 225.68 25.66 14.79 242.27 26.46 11.88 -6.85 -3.04 -3.93 24.43
Rico Auto Industries 618.93 727.98 58.77 9.89 710.36 82.09 31.71 2.48 -28.41 43.14 -68.81
Sandhar Technologies 1,417.49 902.05 89.35 34.84 1,030.00 107.76 47.94 -12.42 -17.08 5.62 -27.32
Shanthi Gears 747.98 142.66 25.55 17.81 121.36 22.49 17.50 17.55 13.61 3.47 1.77
Sharda Motor Industries 621.39 463.69 46.71 34.99 596.65 74.38 43.48 -22.28 -37.20 23.74 -19.53
Steel Strips Wheels 1,193.78 832.67 97.09 22.41 1,031.88 127.66 42.81 -19.31 -23.95 6.11 -47.65
Subros 1,582.62 1,068.72 99.18 55.00 1,095.72 116.30 42.74 -2.46 -14.72 14.37 28.69
Sundaram-Clayton 4,176.91 717.02 85.83 6.24 956.78 92.93 19.11 -25.06 -7.64 -18.86 -67.35
Suprajit Engineering 2,547.78 761.56 107.04 69.81 753.15 108.57 52.87 1.12 -1.41 2.57 32.04
Ucal Fuel Systems 296.10 278.80 50.19 21.31 314.37 55.32 20.93 -11.32 -9.27 -2.25 1.80
Varroc Engineering 5,612.88 5,573.31 491.34 117.16 5,928.08 528.45 181.12 -5.98 -7.02 1.12 -35.31
Wabco India 12,064.52 1,083.76 139.62 88.62 1,490.09 222.80 170.28 -27.27 -37.34 16.06 -47.96
Wheels India 1,479.49 1,305.11 89.68 40.29 1,542.07 108.44 40.68 -15.37 -17.30 2.34 -0.96
ZF Steering Gear (India) 364.84 162.95 -45.98 7.76 223.68 40.08 26.09 -27.15 -214.71 163.51 -70.25
Batteries
Amara Raja Batteries 12,162.70 3,510.26 571.46 359.76 3,531.72 456.88 233.26 -0.61 25.08 -20.54 54.23
Eveready Industries (India) 416.86 669.31 56.30 25.24 766.83 75.98 43.01 -12.72 -25.90 17.79 -41.33
Exide Industries 15,142.75 5,390.11 774.92 461.58 5,492.81 723.63 478.33 -1.87 7.09 -8.36 -3.50
HBL Power Systems 433.81 561.71 38.60 11.43 630.49 38.15 10.74 -10.91 1.19 -11.95 6.40
Bearings
Menon Bearings 310.18 74.20 14.54 7.67 92.28 22.67 14.52 -19.59 -35.86 25.36 -47.16
NRB Bearings 923.67 396.85 44.42 15.98 484.92 90.54 63.88 -18.16 -50.94 66.81 -74.98
Schaeffler India 14,260.05 2,288.99 343.78 188.66 1,036.11 177.39 127.29 120.92 93.80 14.00 48.21
SKF India 10,531.77 1,524.03 215.03 162.56 1,520.99 238.71 165.16 0.20 -9.92 11.23 -1.57
Timken India 6,744.49 838.92 184.81 100.29 797.22 129.72 66.19 5.23 42.47 -26.14 51.52
Castings/Forgings
Alicon Castalloy 513.61 532.60 61.89 14.44 602.36 69.33 26.11 -11.58 -10.73 -0.96 -44.70
Electrosteel Castings 495.30 1,210.64 178.34 48.30 1,052.74 164.67 -682.00 15.00 8.30 6.18 107.08
Gandhi Special Tubes 348.03 41.84 12.68 12.45 71.19 27.61 21.31 -41.23 -54.10 28.03 -41.56
Kirloskar Ferrous Industries 844.28 946.23 86.89 31.55 1,025.56 93.17 37.54 -7.74 -6.74 -1.07 -15.96
Nelcast 455.89 316.78 26.57 10.42 448.28 42.91 22.97 -29.33 -38.08 14.13 -54.62
Ratnamani Metals & Tubes 4,830.04 1,198.00 219.52 139.16 1,339.68 206.49 126.97 -10.58 6.31 -15.88 9.60
Srikalahasthi Pipes 788.97 818.18 119.77 69.28 734.00 84.39 50.55 11.47 41.93 -21.46 37.07

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 Economic Review For The First Half Of 2019 - 2020

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Welspun Corp 3,481.09 4,310.05 491.53 230.11 4,378.08 310.71 159.03 -1.55 58.20 -37.77 44.70
Cycles
Tube Investments of India 9,242.06 2,631.94 318.95 171.95 2,978.73 286.32 131.36 -11.64 11.40 -20.68 30.90
Diesel Engines
Cummins India 15,395.69 2,651.45 303.85 324.79 2,814.88 465.55 394.56 -5.81 -34.73 44.32 -17.68
Greaves Cotton 3,014.94 966.86 120.40 83.43 953.24 134.20 89.20 1.43 -10.28 13.05 -6.47
Swaraj Engines 1,319.27 428.10 57.36 42.31 481.55 76.75 48.43 -11.10 -25.26 18.95 -12.64
Fasteners
Sterling Tools 875.57 193.55 33.15 15.95 270.62 51.95 29.24 -28.48 -36.20 12.10 -45.45
Forgings
Bharat Forge 22,897.65 2,606.02 669.65 419.00 3,158.87 862.99 461.95 -17.50 -22.40 6.32 -9.30
Mahindra CIE Automotive 6,469.71 1,183.47 132.73 70.28 1,261.92 155.47 82.42 -6.22 -14.63 9.85 -14.73
MM Forgings 887.78 412.52 76.44 27.54 438.40 87.43 39.53 -5.90 -12.57 7.62 -30.32
Ramkrishna Forgings 1,094.09 639.91 119.45 14.19 871.95 184.35 60.50 -26.61 -35.21 13.27 -76.55
Lubricants
Castrol India 12,764.62 2,015.80 567.30 367.70 1,944.30 526.00 346.00 3.68 7.85 -3.87 6.27
Gulf Oil Lubricants India 4,182.42 861.96 153.60 110.71 807.57 135.92 80.42 6.73 13.01 -5.55 37.66
Panama Petrochem 354.19 529.89 29.66 16.03 596.33 42.20 21.20 -11.14 -29.73 26.44 -24.36
Savita Oil Technologies 1,188.87 1,078.42 87.32 53.41 1,115.46 73.08 36.43 -3.32 19.49 -19.09 46.61
Tide Water Oil Co. (India) 1,557.08 575.89 58.91 51.52 573.60 61.69 48.18 0.40 -4.51 10.23 6.93
Railways Wagons
Texmaco Rail & Engineering 850.91 867.99 72.71 18.22 648.50 49.20 19.31 33.85 47.80 8.38 -5.64
Titagarh Wagons 538.72 626.91 52.02 26.03 315.61 17.02 7.39 98.63 205.56 8.30 252.41
Tyres & Allied
Apollo Tyres 9,224.31 8,317.13 906.93 224.61 8,545.43 995.34 397.83 -2.67 -8.88 10.90 -43.54
Balkrishna Industries 18,581.65 2,264.67 535.32 467.00 2,687.87 690.23 452.56 -15.74 -22.44 23.64 3.19
Ceat 3,991.82 3,443.65 337.50 115.78 3,460.94 335.06 123.87 -0.50 0.73 9.80 -6.53
Goodyear India 2,263.40 944.36 91.91 64.04 1,023.95 85.30 53.52 -7.77 7.75 9.73 19.66
JK Tyre & Industries 1,772.86 4,730.34 535.98 184.31 4,933.28 587.90 115.67 -4.11 -8.83 11.33 59.34
MRF 26,768.78 8,357.07 1,143.57 488.88 7,783.71 1,176.32 523.78 7.37 -2.78 13.68 -6.66
TVS Srichakra 1,279.03 1,137.56 132.97 46.51 1,219.58 140.10 63.53 -6.73 -5.09 11.69 -26.79

Sector Sponsor
Banks
I
ndian banking system can be bifurcated in two main
streams such as private and public sector. At the current
juncture, we believe that a large portion of private banks
are much better placed in terms of asset quality and
performance across the board. The public sector banks are
expected to make a come-back to being a ‘leader’ in our
banking system after the recent consolidation by the
Government of India. After the completion of this
integration, only 12 PSU banks would remain in the
industry.

The performance of overall banking industry was good

owing to a decent Net Interest Income (NII) growth of

DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 43

Special Supplement
Economic Review For The First Half Of 2019 - 2020
nearly 9 per cent on YoY basis. However, after the recent change
in tax structure and corporate tax, the earnings of a few banks
took a toll on the account of Deferred Tax Assets (DTA).
Otherwise, the overall performance showed a positive
momentum.
In H1FY20, the overall interest income of banking sectors grew
by 15.20 per cent in comparison to the same period in the last
fiscal year. Banks such as IDFC First Bank, Bank of Baroda, AU
Small Finance Bank and Bandhan Bank reported interest
income growth more than 50 per cent for the first half of
current fiscal in comparison to last years. Restructuring in
select banking was one of the main reasons for the growth, as it
was seen in the recent numbers of IDFC First Bank after
merger with Capital First Ltd.
Private Banks led the growth of the industry with an average
total income increase of nearly 21 per cent, over the same
period last year. The PSU banks on the other hand, registered
just 9 per cent top-line growth. The average net profit here
though has a different trend. Looking at the average net profit
of the private banks, a growth of nearly 7.8 per cent was seen
during the first half of the year. The PSU banks on the other
hand, saw a sharp jump of 58 per cent for H1FY20, in
comparison to H1FY19. The PAT growth was due to a much
lower provisioning during the period under review.
The Net Interest Income (NII) of banking sector, which is the
difference between total interest income and interest
expenditure, registered a growth of 17.18 per cent for H1FY20.
Highest growth reported was by Bank of Baroda and United
Bank which was higher on account of PSU banks consolidation.
On the other hand, Corporation Bank, Lakshmi Vilas Bank and
Punjab & Sind Bank reported a negative NII growth of 12.86
per cent, 17.04 per cent and 18.17 per cent. The decline is due
The public sector banks are
expected to make a come-back
to being a ‘leader’ in our
banking system after the
recent consolidation by the
Government of India. After the
completion of this integration,
only 12 PSU banks would
remain in the industry.
44 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020
to the stress on asset quality, higher provisions and lower
advances. Stressed financial performance also impacted ratings
which were revised to negative outlook by rating agencies.
Talking on provisioning, out of 18 listed PSU banks, only 3
reported higher YoY provisions for the first half of this fiscal
year. The PSUs were helped largely by recapitalisation from the
government. The capital addition certainly helped the cause of
public banks which boosted the bottom line. Bank of Baroda
reported the highest provisioning due to an exposure to
crisis-hit NBFCs. The H1FY20 provision of the bank stood at
`7,494.04 crore, as compared to `4,595.18 crore for the same
period last year. Other banks to report higher provisions were
UCO Bank and Union Bank of India which reported 13 per
cent and 38 per cent higher provisioning during the first half of
current fiscal year. Major gainers in terms of PAT on account of
lower provisions were Punjab National Bank, Central Bank Of
India, United Bank of India, which reported a PAT growth of
126.72 per cent, 110 per cent, 118 per cent, respectively for the
first half of the current fiscal. In the case of private banks, RBL
Bank, IDFC First Bank, Yes Bank reported provisions more
than 100 per cent during the first half. This will hit the bottom
line of these players badly and even stock price would be down
more than 60 per cent from their highs of last year. The net
profit decline for RBL Banks, IDFC First Bank, Yes Bank was
584.7 per cent, 124 per cent and 19.20 per cent, respectively.
After a huge debacle in the recent history, recovery in the banks
was supposed to be led by credit growth and CASA deposit,
which lowers credit cost for the banks. Instead, there is a
marginal drop here, due to more safe and high return in term
deposits. The slow growth in CASA also shows that the trend
towards lower spending focus is more on saving than spending.
This was very much evident after looking at first quarter CASA
numbers of players such as ICIC Bank which saw CASA drop
to 45 per cent from 51 per cent for the same quarter in the last
fiscal. Other banking majors such as Axis Bank, Yes Bank and
HDFC Bank CASA declined to 41 per cent, 30 per cent and 40
per cent from 47 per cent, 35 per cent and 42 per cent,
respectively.
Outlook
Government of India continues to step in with fiscal stimulus
like slashing corporate tax, export incentives, capital infusion,
integration of public sector banks as the increase in Capex is
expected to yield returns for the sector. But this can come with
a lag-effect as the overall economic activity is slow. The efforts
for revival in the economy has way through banking system,
especially PSUs by more capital power, regional presence etc.
Hence outlook for the public banks is positive. Private Banks
will need more of operational efforts to continue growth
trajectory. Focus will continue to be on the CASA growth, retail
loan book and faster recovery corporate credit.
DSIJ.in
 Economic Review For The First Half Of 2019 - 2020

Private Sector Banks

H1FY20 H1FY19 % Change
M Cap
Company Name Interest Profit after Interest Profit after Interest Profit after
(` Cr.)
Earned Net NPA (%) tax Earned Net NPA (%) tax Earned (%) Net NPA (%) tax (%)
HDFC Bank 701525.01 55557.87 0.39 11913.15 46748.54 0.33 9607.17 18.84 0.06 24
ICICI Bank 351896.27 36545.36 2.29 2562.99 29827.99 5.43 789.33 22.52 -3.14 225
Kotak Mahindra Bank 322562.51 13401.48 0.75 3084.68 11290.60 1.26 2166.59 18.70 -0.51 42
Axis Bank 212664.49 30692.75 2.06 1258.00 26058.01 2.11 1490.70 17.79 -0.05 -16
IndusInd Bank 106081.33 14111.73 1.21 2815.87 10506.24 0.39 1955.97 34.32 0.82 44
Bandhan Bank 81188.06 4810.84 0.58 1672.94 3161.81 0.36 969.36 52.15 0.22 73
IDBI Bank 38563.91 10289.46 10.11 -7259.68 11115.44 13.21 -6012.38 -7.43 -3.10 NA
AU Small Finance Bank 24359.01 1990.82 1.29 362.26 1283.65 1.22 168.24 55.09 0.07 115
IDFC First Bank 21528.61 7811.28 1.30 -1296.86 4655.31 1.14 -188.14 67.79 0.16 NA
The Federal Bank 17452.35 6483.55 1.48 800.91 5432.30 1.28 528.75 19.35 0.20 51
City Union Bank 17276.91 2066.06 1.81 379.18 1815.99 1.71 329.64 13.77 0.10 15
RBL Bank 16856.07 4148.82 0.69 321.36 2827.65 0.64 394.58 46.72 0.05 -19
Yes Bank 12076.49 15202.42 1.86 -486.32 13809.27 0.81 2225.06 10.09 1.05 NA
DCB Bank 5237.99 1736.90 0.65 172.47 1437.09 0.79 142.94 20.86 -0.14 21
Karur Vysya Bank 4887.79 3030.04 4.98 136.25 2899.47 2.53 129.65 4.50 2.45 5
The Karnataka Bank 2051.73 3214.01 2.95 281.33 2860.25 2.64 275.10 12.37 0.31 2
The South Indian Bank 1826.01 3848.82 3.45 157.74 3350.42 1.45 93.17 14.88 2.00 69
The Jammu & Kashmir Bank 1673.36 4072.61 4.89 318.55 3274.65 5.06 100.88 24.37 -0.17 216
The Lakshmi Vilas Bank 589.25 1231.28 7.49 -594.43 1456.28 1.76 -256.18 -15.45 5.73 NA
Dhanlaxmi Bank 369.40 493.77 2.41 41.91 484.56 2.58 -32.84 1.90 -0.17 NA

Public Sector Banks
H1FY20 H1FY19 % Change
M Cap
Company Name Interest Profit after Interest Profit after Interest Profit after
(` Cr.)
Earned Net NPA (%) tax Earned Net NPA (%) tax Earned (%) Net NPA (%) tax (%)
State Bank Of India 298305.14 126950.20 3.01 5323.93 117606.66 3.71 -3930.98 7.94 -0.70 NA
Bank Of Baroda 47568.73 38219.30 3.33 1446.55 23718.22 4.72 953.64 61.14 -1.39 52
Punjab National Bank 43389.92 26378.36 6.56 1525.68 25439.45 7.81 -5472.36 3.69 -1.25 NA
Canara Bank 22840.27 24592.66 5.37 693.99 22483.30 6.33 581.03 9.38 -0.96 19
Bank Of India 22840.16 20990.31 5.61 508.99 19782.68 6.90 -1061.14 6.10 -1.29 NA
Union Bank Of India 18842.62 18310.99 6.85 -969.18 17239.63 6.57 268.57 6.21 0.28 NA
Corporation Bank 15255.20 7992.81 5.71 233.04 8161.16 8.33 187.98 -2.06 -2.62 24
Indian Overseas Bank 14737.50 8612.04 10.81 -2595.72 8532.34 13.99 -1406.70 0.93 -3.18 NA
UCO Bank 14616.49 7621.17 9.72 -1493.43 7211.50 8.94 -1770.32 5.68 0.78 NA
Central Bank Of India 10249.02 11604.52 7.73 252.40 11376.92 10.20 -2445.84 2.00 -2.47 NA
United Bank of India 7999.12 4814.29 8.67 228.87 4278.44 10.02 -1271.85 12.52 -1.35 NA
Bank Of Maharashtra 7582.99 5672.88 5.52 195.75 5428.73 11.76 -1092.00 4.50 -6.24 NA
Syndicate Bank 7487.59 10952.04 6.16 -729.41 10656.50 5.21 -2824.31 2.77 0.95 NA
Oriental Bank Of Commerce 7138.79 9797.45 5.93 238.58 8558.81 8.96 -291.47 14.47 -3.03 NA
Allahabad Bank 7108.48 8434.87 5.22 -1986.06 8599.05 8.92 -3767.08 -1.91 -3.70 NA
Indian Bank 6361.97 10445.25 3.75 723.93 9393.01 4.39 359.46 11.20 -0.64 101
Andhra Bank 5118.40 9920.36 5.73 121.75 9282.65 7.57 -973.93 6.87 -1.84 NA
Punjab & Sind Bank 1496.75 4084.60 7.22 -499.01 4384.78 7.51 -507.25 -6.85 -0.29 NA

DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 45

Special Supplement
Economic Review For The First Half Of 2019 - 2020

Infrastructure (22 per cent), Industrial & Commercial (12 per

cent) and Low-cost Housing (12 per cent). Looking at the price
trend during H1FY20, the price from North region was moving
in the range of `320-350. The price has continuously declined
from May 2019. Under South region, the price was moving in
the range of `370-340 and also declined since May 2019. Under
East region, prices declined sharply to `270 in September 2019
from `320 in May 2019. Under West and Central region, prices
were in a declining trend and moved in the range between
`360-320 and `320-270.

Looking at the margins front, in Q1FY20, margins were very

stable led by softening of input material prices, however in
Q2FY20, the scenario was different. Going ahead with the
weakening demand, margins would likely be under pressure.
In our analysis, we have considered 25 cement companies
according to their market capitalisation. During H1FY20, the

Cements
aggregate sales of these companies grew by 5 per cent YoY. The
aggregate operating profit of these companies grew by 33 per
cent YoY and the aggregate PAT grew by 63 per cent YoY.

C
During H1FY20, the cement major, Ultratech Cement reported
ement industry is one of the crucial industries for any 15 per cent YoY growth in terms of its revenue and 59 per cent
economy on which any country builds its YoY growth in the operating profit. PAT also jumped by 77 per
infrastructure. Indian cement industry is the second cent YoY. Shree Cement reported 3 per cent YoY growth in
largest cement producer in the world after China; ahead of the terms of its revenue and 59 per cent YoY growth in the
US and Japan, with a total installed capacity of ~480 Million operating profit. PAT jumped by 104 per cent YoY. Ambuja
Tonnes Per Annum (MTPA). India consumes nearly 7 per Cement reported 5 per cent YoY growth in terms of its revenue
cent of the global cement consumption. On the geographical and 10 per cent YoY growth in the operating profit. PAT also
front, cement industry comprises of South (33 per cent), grew by 27 per cent YoY.
North (22 per cent), East (19 per cent), West (13 per cent) and
Central (13 per cent). The Cement industry consists of 225 Going ahead, companies are likely to post double digit growth
plants owned by 65 players, out of which, 51 per cent capacity led by various capacity expansions. Also, government's recent
is dominated by the Top 5 players. steps like reduction in corporate tax as well as lowering of
interest rates are expected to stimulate the economy and drive
The cement industry is highly capital intensive, competitive infrastructure and affordable housing demand. However, tight
and cyclical in nature. Considering the oligopolistic nature of financial conditions faced by the NBFCs and moderation of
the cement industry, pricing control by large players stops new external demand were the key challenges faced by the economy.
players from entering into the industry. The major growth We expect the government’s thrust on infrastructure through
drivers of the cement industry are Housing (54 per cent), various government schemes would drive a growth story.
M Cap H1 FY20 H1 FY19 Change (%)
Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Cement & Construction Materials
ACC 27,247.93 8,068.93 1,314.72 795.61 7,472.84 1,116.80 574.21 7.98 17.72 -8.28 38.56
Ambuja Cements 38,541.37 13,899.49 2,480.81 1,518.20 13,294.68 2,251.51 1,192.75 4.55 10.18 -5.11 27.29
Anjani Portland Cement 360.70 214.19 48.20 26.03 207.18 24.61 9.27 3.38 95.86 -47.22 180.92
Deccan Cements 377.01 316.29 56.41 55.65 324.24 44.24 21.53 -2.45 27.51 -23.50 158.47
Everest Industries 383.25 717.78 39.15 18.68 729.51 60.97 38.07 -1.61 -35.79 53.23 -50.93
Heidelberg Cement India 4,000.85 1,111.39 280.47 137.18 1,026.06 235.92 101.20 8.32 18.88 -8.89 35.55
HIL 850.10 758.14 99.74 62.86 803.55 125.08 78.89 -5.65 -20.26 18.32 -20.32
Jaiprakash Associates 527.84 2,222.51 66.78 -320.49 3,594.70 404.81 -325.70 -38.17 -83.50 274.79 1.60
JK Cement 8,942.25 2,582.17 557.53 262.60 2,216.20 320.12 114.02 16.51 74.16 -33.10 130.32
JK Lakshmi Cement 3,219.45 1,977.36 318.45 85.31 1,774.88 185.50 21.56 11.41 71.67 -35.10 295.69
KCP 761.92 454.79 34.17 -3.84 561.60 67.22 31.43 -19.02 -49.16 59.30 -112.22

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 Economic Review For The First Half Of 2019 - 2020

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Mangalam Cement 723.40 622.41 112.51 47.95 542.11 20.62 -12.19 14.81 445.76 -78.96 493.21
NCL Industries 371.36 480.35 90.80 37.76 468.19 53.74 13.89 2.60 68.96 -39.28 171.79
Orient Cement 1,437.15 1,202.78 203.21 48.20 1,200.68 121.18 -0.73 0.17 67.69 -40.26 6693.57
Ramco Industries 1,597.20 473.01 54.43 47.27 491.38 61.78 47.90 -3.74 -11.90 9.26 -1.32
Sagar Cements 1,133.50 609.48 120.99 34.43 532.60 57.52 -2.19 14.43 110.34 -45.60 1672.15
Sanghi Industries 909.88 478.78 102.71 44.58 518.95 75.78 21.85 -7.74 35.53 -31.93 104.00
Shree Cement 73,385.90 5,838.12 1,746.33 672.08 5,656.50 1,094.94 328.81 3.21 59.49 -35.29 104.40
Shree Digvijay Cement 344.95 216.00 46.42 23.83 212.30 17.56 4.67 1.74 164.36 -61.51 410.24
Star Cement 3,650.00 843.32 176.49 129.23 880.18 200.41 129.69 -4.19 -11.94 8.80 -0.35
The India Cements 2,175.48 2,714.52 389.10 80.93 2,747.70 310.86 22.46 -1.21 25.17 -21.07 260.33
The Ramco Cements 17,660.01 2,700.56 654.53 360.12 2,403.42 497.43 239.45 12.36 31.58 -14.61 50.39
Udaipur Cement Works 341.93 368.58 67.15 17.01 243.80 11.61 -24.82 51.18 478.38 -73.86 168.53
Ultratech Cement 117,210.66 19,798.10 4,626.41 1,786.47 17,172.87 2,916.70 1,006.76 15.29 58.62 -27.32 77.45
Visaka Industries 375.27 581.23 66.99 36.29 596.72 84.96 44.28 -2.60 -21.15 23.53 -18.04

of these companies has also grown by 3.5 per cent in the first half
of FY20. Of this set of companies, the performance was mixed.
The revenue of 42 companies registered an impressive rise.
Among these, 19 companies delivered double-digit growth. In
H1FY20, the revenue of companies, such as UPL and Fairchem
Speciality, grew enormously. Both the companies reported a
respective rise by 87 per cent and 62 per cent. Similarly, EBITDA
of companies, such as Deepak Nitrite (219 per cent), Camlin Fine
Sciences (111 per cent), and Shalimar Paints (101 per cent), also
recorded humungous growth. Also, PAT of companies, such as
Deepak Nitrite (474 per cent), Supreme Petrochem (177 per cent),
and Godrej Industries (113 per cent), jumped exceptionally in
H1FY20.

Chemicals The revenue and EBITDA of the top company by market cap, that
is, Pidilite Industries, grew merely by 6.5 per cent and 8.7 per cent,
respectively, while PAT jumped by 31 per cent in the H1 of FY20.

G
lobally, India is the sixth-largest producer of chemicals,
placed only after the US, China, Germany, Japan, and
Korea, which also makes it the third-largest chemical
producer in Asia, in terms of output. The country ranks third
across the world in the production of agrochemicals and
contributes around 16 per cent to the global production of
dyestuff and dye intermediates. Basic chemicals and their related
products (petrochemicals, fertilizers, paints, varnishes, glass,
perfumes, toiletries, pharmaceuticals, etc.) constitute a
significant part of the Indian economy. Among the most
diversified industrial sectors, chemicals cover an array of more
than 80,000 commercial products. The chemical sector has
application across a number of industries, such as textiles,
papers, paints, soaps, detergents, and pharmaceuticals,
among others.
Top paints' company, Asian Paints, grew moderately with 12.6 per
cent growth in revenue, 27.3 per cent growth in EBITDA, and a
whopping 40.8 per cent growth in PAT in H1FY20 on a YoY basis.
Pesticides and agrochemicals' leading company, UPL, which
reported the highest growth in terms of revenue and EBITDA, as
compared to other companies from the segment, witnessed a huge
de-growth in PAT by 58.5 per cent YoY.
In H1FY20, the turnaround in some of the companies appeared
when they earned net profit against the net loss in H1FY19. The
net profit of Camlin Fine Sciences in H1FY20 was `23.9 crore
compared to the net loss of `2.5 crore in H1FY19. Similarly,
Fairchem Speciality earned a net profit of `90.4 crore in H1FY20
against the net loss of `28.8 crore in H1FY19. Of the 70
companies, only Shalimar Paints incurred a net loss, whereas, all
other companies have generated a net profit in H1FY20.

On the sectoral front, we have analysed 72 companies in the As per Crisil, the prospects of the domestic chemicals industry are
chemical sector according to their market cap. During H1FY20, intrinsically linked with the overall growth in the economy and
the overall revenue of these companies has increased by 10.7 per the export market. India is a net exporter in various segments,
cent, with EBITDA reporting a rise by 10.9 per cent. The net profit such as dyes and pigments, and Crisil expects this trend to

DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 47

Special Supplement
Economic Review For The First Half Of 2019 - 2020

continue. However, the slowdown in the global economy is likely
to hamper the overall growth potential for the chemicals sector.
Nevertheless, the recent trade war between the USA and China
and Brexit can have a significant positive impact on the Indian
chemicals sector's growth in the near future. The USA, EU, and
the UK markets are ripe for the disruption this year, as China has
been the single largest supplier to the USA and post-import duty
tariff regime, Indian companies would need to accept business
coming from the US with open hands. Further, Chinese buyers
are also seeking product sourcing from India due to their
environment-related problems. Several US and European
chemical manufacturers are looking at shifting their
manufacturing base from China and, as of now, India and
Vietnam are the two most sought-after destinations among them.
approved. Another initiative in this regard is to establish plastic
parks to facilitate state-of-art technology development and a
conducive ecosystem to produce specialised plastic products.
The recent Union budget, too, had a few announcements that
would positively impact chemicals in the future. The Indian
Government discussed its vision regarding farmers' income in the
budget session and stated that zero budget natural farming
(ZBNF) technique will double farmers’ income. It also announced
the formation of 10,000 farmer producer organizations (FPOs) to
boost agrochemical companies. The number of construction and
water chemical companies in India will continue to increase due
to the consistent focus on India’s infrastructure (the Indian
Government will invest `100 lakh crores in the next 5 years).

To support and push the chemical sector in India, the The industry has ambitious growth targets and it is estimated to
Government has taken up various favorable initiatives, facilitating grow at a CAGR of 9 per cent to reach a volume of US$304 billion
growth. These initiatives include the permission of 100 per cent by FY25. The growth is expected to be driven by the rising
FDI in the chemical sector under the automatic route, except for demand in the end-use segments for specialty chemicals and
some hazardous chemicals. Setting up PCPIRs, which are petrochemicals. The market size of the domestic agrochemical
investment regions for petroleum, chemicals, and petrochemicals, sector is anticipated to reach US$8.1 billion by FY25 and the
together with associated services, is also a government initiative specialty sector is foreseen to increase by about 10 per cent
to support this sector. Four such PCPIRs have already been annually to almost double the size by FY25.
M Cap H1 FY20 H1 FY19 Change (%)
Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Carbon Black
Phillips Carbon Black 1,963.79 1,774.51 242.20 141.71 1,661.68 332.24 205.51 6.79 -27.10 46.49 -31.04
Chemicals
Aarti Industries 14,486.73 2,105.15 475.45 279.55 2,378.00 429.99 212.20 -11.47 10.57 -19.94 31.74
Alkyl Amines Chemicals 2,157.84 501.20 116.86 88.99 396.28 86.17 44.08 26.48 35.61 -6.74 101.87
Apcotex Industries 764.19 270.79 24.99 14.98 310.15 37.52 21.35 -12.69 -33.38 31.06 -29.83
Atul 12,002.32 2,006.32 430.66 338.07 1,895.48 331.97 203.21 5.85 29.73 -18.41 66.36
Balaji Amines 1,171.13 461.80 82.74 54.67 476.72 103.46 64.80 -3.13 -20.03 21.13 -15.63
Bhansali Engg. Polymers 671.92 693.01 49.05 42.18 650.87 55.06 33.66 6.48 -10.93 19.54 25.32
Bodal Chemicals 680.16 679.99 74.71 47.70 744.93 136.62 84.34 -8.72 -45.32 66.93 -43.45
Camlin Fine Sciences 881.52 482.40 65.57 23.95 382.73 31.11 -2.51 26.04 110.77 -40.20 1055.83
Clariant Chemicals (India) 883.57 567.94 58.15 24.61 520.71 34.13 13.31 9.07 70.38 -35.98 84.90
DCW 362.57 670.00 99.26 3.36 672.64 76.40 -11.06 -0.39 29.92 -23.33 130.41
Deepak Nitrite 5,073.14 1,119.51 397.87 285.90 853.73 124.68 49.85 31.13 219.12 -58.91 473.51
Elantas Beck India 1,764.78 205.52 29.90 24.77 198.91 33.19 40.58 3.32 -9.92 14.70 -38.96
Fairchem Speciality 1,945.32 842.06 121.04 90.44 521.26 61.54 -28.85 61.54 96.69 -17.87 413.47
Fine Organic Industries 5,814.82 517.88 123.06 96.13 501.03 111.49 68.80 3.36 10.38 -6.36 39.73
Foseco India 833.34 170.48 26.41 17.88 181.90 25.91 16.36 -6.28 1.91 -8.04 9.32
GFL 871.66 1,464.66 358.08 12.40 2,839.23 633.40 615.24 -48.41 -43.47 -8.75 -97.98
GHCL 1,773.24 1,697.79 417.66 225.53 1,589.98 325.41 140.00 6.78 28.35 -16.80 61.09
GOCL Corporation 1,377.12 246.59 7.56 10.93 233.88 12.72 13.93 5.44 -40.61 77.53 -21.59
Godrej Industries 14,259.43 5,473.77 440.15 222.98 5,655.28 335.37 104.73 -3.21 31.24 -26.25 112.91
Grauer & Weil (India) 1,128.99 281.30 43.72 35.52 260.58 53.28 35.43 7.95 -17.94 31.56 0.25
Gujarat Alkalies & Chemicals 2,916.91 1,447.38 403.46 261.15 1,524.57 565.54 357.54 -5.06 -28.66 33.08 -26.96
Himadri Speciality Chemical 2,365.68 1,010.87 210.52 123.75 1,206.50 265.52 150.75 -16.21 -20.71 5.67 -17.91
IG Petrochemicals 414.19 514.49 38.64 12.48 675.19 155.96 80.70 -23.80 -75.22 207.52 -84.53
India Glycols 650.04 2,903.18 226.51 78.84 2,482.49 227.13 85.87 16.95 -0.27 17.27 -8.19
INEOS Styrolution India 1,255.61 880.32 39.15 19.17 1,163.48 48.93 23.90 -24.34 -19.99 -5.43 -19.80

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M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Jayant Agro-Organics 372.45 1,640.17 51.41 16.18 1,194.07 71.75 29.92 37.36 -28.35 91.71 -45.90
Jubilant Life Sciences 8,281.82 4,447.79 903.05 434.37 4,348.14 887.78 410.14 2.29 1.72 0.56 5.91
Manali Petrochemicals 292.40 348.42 35.33 21.04 360.69 52.79 32.74 -3.40 -33.07 44.33 -35.74
National Peroxide 909.81 111.40 23.74 19.94 234.36 148.36 98.59 -52.47 -84.00 197.11 -79.77
Navin Fluorine International 5,093.83 505.64 128.34 85.85 484.85 113.47 73.79 4.29 13.11 -7.80 16.35
Nocil 1,645.20 439.32 104.04 87.92 540.08 159.14 103.64 -18.66 -34.62 24.42 -15.17
Oriental Aromatics 574.97 415.87 64.32 44.67 346.77 57.38 28.22 19.93 12.09 6.99 58.29
Oriental Carbon & Chemicals 997.86 178.10 50.05 38.44 190.50 57.39 34.05 -6.51 -12.79 7.21 12.90
Paushak 759.02 70.32 21.17 17.53 62.86 17.56 22.05 11.87 20.56 -7.21 -20.50
Pidilite Industries 70,575.45 3,823.39 811.97 618.08 3,591.51 746.50 472.19 6.46 8.77 -2.13 30.90
Plastiblends India 462.22 320.60 35.18 20.81 311.18 34.81 16.57 3.02 1.07 1.93 25.56
Seya Industries 306.39 182.71 67.57 41.96 212.72 71.94 41.87 -14.11 -6.07 -8.55 0.22
SH Kelkar & Co 1,534.74 553.67 84.62 33.95 519.89 69.66 46.36 6.50 21.48 -12.33 -26.77
Sharda Cropchem 1,956.43 747.16 78.99 17.15 766.89 105.79 50.43 -2.57 -25.34 30.49 -65.99
Solar Industries (India) 9,564.80 1,126.59 231.28 160.44 1,135.58 235.52 127.90 -0.79 -1.80 1.03 25.44
Supreme Petrochem 1,470.69 1,439.58 97.49 77.07 1,599.83 51.14 27.83 -10.02 90.64 -52.80 176.96
Tata Chemicals 17,030.46 5,980.44 1,227.23 718.80 5,729.78 1,117.69 619.34 4.37 9.80 -4.94 16.06
Thirumalai Chemicals 667.57 558.66 52.20 22.03 621.78 141.95 84.40 -10.15 -63.23 144.33 -73.90
Transpek Industry 637.62 237.97 33.97 18.81 260.91 39.04 21.21 -8.79 -12.99 4.82 -11.32
Ultramarine & Pigments 510.27 150.69 36.59 33.28 151.18 35.48 33.01 -0.32 3.13 -3.35 0.82
Vikas Proppant & Granite 377.61 0.27 0.17 0.97 21.33 20.99 20.99 -98.72 -99.21 61.29 -95.38
Vinati Organics 9,801.81 535.80 220.03 192.37 517.57 186.98 129.28 3.52 17.67 -12.02 48.80
Dyes & Pigments
Bhageria Industries 422.69 209.83 50.69 34.17 234.89 72.55 46.06 -10.67 -30.13 27.85 -25.81
Kiri Industries 1,207.32 692.04 113.63 73.39 706.09 140.19 104.55 -1.99 -18.95 20.93 -29.80
Sudarshan Chemical Ind. 2,779.47 765.18 124.39 88.04 719.66 111.13 124.72 6.33 11.93 -5.01 -29.41
Vidhi Specialty Food Ingred. 299.67 105.50 23.81 16.18 110.21 23.20 14.86 -4.28 2.64 -6.74 8.90
Paints
Akzo Nobel India 8,790.87 1,353.51 176.18 106.40 1,429.49 137.65 80.26 -5.32 27.99 -26.02 32.57
Asian Paints 173,624.39 10,181.29 2,111.07 1,489.54 9,037.64 1,658.59 1,057.79 12.65 27.28 -11.49 40.82
Berger Paints India 49,930.63 3,315.11 556.30 372.87 2,973.07 433.82 251.72 11.50 28.23 -13.05 48.13
Kansai Nerolac Paints 28,010.35 2,706.99 461.95 341.29 2,669.80 415.40 261.83 1.39 11.21 -8.82 30.35
Shalimar Paints 441.73 167.14 0.17 -10.47 123.19 -18.72 -24.78 35.68 100.91 -15040.39 57.75
Pesticides & Agrochemicals
Astec Lifesciences 841.22 217.20 21.65 4.18 178.19 32.62 13.06 21.89 -33.62 83.62 -68.01
BASF India 4,338.74 3,688.08 157.81 10.52 3,302.68 162.58 33.83 11.67 -2.93 15.04 -68.90
Bayer CropScience 16,293.98 2,009.90 430.00 229.10 1,935.90 448.40 289.90 3.82 -4.10 8.27 -20.97
Bhagiradha Chem. & Ind. 317.35 189.41 19.19 10.12 183.33 21.83 7.73 3.32 -12.10 17.55 30.96
Bharat Rasayan 2,619.31 720.08 137.52 96.35 530.39 99.77 60.77 35.76 37.84 -1.50 58.55
Dhanuka Agritech 1,886.24 621.01 93.35 74.79 596.33 91.48 71.22 4.14 2.05 2.05 5.01
Excel Industries 1,026.08 370.33 81.23 65.48 398.05 131.35 82.00 -6.97 -38.16 50.44 -20.14
Insecticides (India) 969.94 861.47 135.15 84.75 777.27 124.78 76.97 10.83 8.31 2.33 10.11
Meghmani Organics 1,270.30 1,148.61 245.36 175.30 977.88 240.77 138.83 17.46 1.91 15.26 26.27
NACL Industries 434.10 492.71 26.48 7.68 504.37 26.20 6.40 -2.31 1.07 -3.34 20.00
PI Industries 20,202.44 1,661.50 343.30 223.60 1,328.60 252.70 176.10 25.06 35.85 -7.95 26.97
Punjab Chemicals & Crop 625.37 289.24 26.82 8.68 278.16 27.71 7.97 3.98 -3.21 7.43 8.91
Rallis India Ltd. 3,285.55 1,371.93 213.43 147.29 1,226.92 206.51 139.67 11.82 3.35 8.19 5.46
Shivalik Rasayan Ltd. 385.47 97.22 14.13 10.92 89.24 11.93 9.32 8.95 18.42 -8.00 17.24
UPL Ltd. 43,468.31 15,723.00 2,699.00 331.00 8,391.00 1,610.00 798.00 87.38 67.64 11.78 -58.52

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huge inventory level. Consequently, developers who were

heavily relied on debt for executing their projects are facing
severe issues. However, players with a strong balance sheet and
healthy cash holding are immune to this liquidity crisis and
may reap benefits from the current market condition.

To analyse the financial performance of the first half of FY20,

we have taken data of 57 companies from the construction
industry. The aggregate sales of these companies grew by nearly
8 per cent in the first half of FY20 on YoY to `1,42,076 crore.
Aggregate EBITDA of these companies improved 10 per cent
YoY with a marginal improvement in the margins. However,
Profit after Tax (PAT) of all these companies increased
marginally by 6 per cent YoY.

L&T, the mammoth in the engineering and construction

industry reported nearly 8 per cent YoY growth in net sales. On
the other hand, India’s largest listed real estate firm DLF
reported a 16.5 per cent fall in the net sales. Also, Godrej

Construction
Properties and Oberoi Realty reported nearly ~36 per cent and
26 per cent YoY decline in their net sales, respectively.

However, the new regulatory norm and tax regime are

R
expected to bring confidence amongst the buyers which in
ight from 2014, i.e since this new government came into turn, will boost demand.
power, the key area where they are focussing, is on the
improvement of infrastructure in the country. However, In contrast to the residential segment, the commercial segment
in the recent times, the construction activity in the country has has been witnessing a fall in the vacancy level which has
been muted owning to the various issues like land acquisition, resulted in an increase in the rent.
liquidity crunch as well as the Union Election in the first half of
FY20. The overall outlook for the infrastructure sector looks
promising as the government’s impetus for the sector is likely
Besides, being a cash-driven transaction industry, real estate to provide enormous opportunity for the industry players. The
has been facing challenges post demonetisation. Additionally, government is expected to invest almost `6.3 lakh crore under
the introduction of RERA and GST have also added to the pain Bharatmala, `2.05 lakh crore under smart cities mission, as well
of real estate players as these new reforms and tax regimes has as in other initiatives like Sagarmala, Housing for All, railways,
led to some confusion for the real estate players in the short- etc. are likely to be a game-changer in the coming years.
term. When the industry was recovering from these blows, the Furthermore, the government has given an approval to the
sector witnessed another shock of liquidity crunch triggered by National Highways Authority of India
IL & FS default. Due to the liquidity crisis, the NBFCs started (NHAI) to set up infrastructure investment trusts (InvITs) to
delaying loan disbursement and were unable to provide monetise highway assets. Through InvIT and ToT model,
funding assistance despite being already credit sanctioned. NHAI is planning to raise a fund of nearly `85,000 crore by
Further, amid slowing demand, the developers are sitting on a FY25E.
M Cap H1 FY20 H1 FY19 Change (%)
Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Construction - Real Estate
Ahluwalia Contracts (India) 1,946.32 734.09 77.45 30.44 843.08 110.00 59.34 -12.93 -29.59 23.67 -48.70
Ajmera Realty & Infra India 416.42 201.21 69.92 22.15 149.65 52.92 29.11 34.45 32.12 1.76 -23.91
Anant Raj 938.41 241.99 95.43 42.90 264.74 53.64 42.79 -8.59 77.91 -48.62 0.26
Arvind Smartspaces 306.12 69.94 21.61 5.67 72.21 13.92 2.98 -3.14 55.22 -37.60 90.59
Brigade Enterprises 4,393.94 1,443.99 372.51 82.93 1,525.01 398.32 149.03 -5.31 -6.48 1.25 -44.35
Capacite Infraprojects 1,208.81 816.55 136.84 63.60 840.60 119.67 45.74 -2.86 14.35 -15.05 39.06
Dilip Buildcon 5,436.60 4,097.28 733.49 182.92 4,060.02 714.15 338.11 0.92 2.71 -1.74 -45.90

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M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
DLF 56,127.69 3,046.70 590.02 330.40 3,646.38 967.92 65.14 -16.45 -39.04 37.07 407.22
Elpro International 745.71 81.05 20.53 9.81 28.12 19.36 87.75 188.17 6.08 171.67 -88.82
Godrej Properties 23,886.78 895.55 147.69 155.47 1,389.98 55.29 79.99 -35.57 167.12 -75.88 94.36
Indiabulls Real Estate 2,714.34 1,922.23 770.61 183.12 1,851.27 488.94 181.42 3.83 57.61 -34.12 0.94
JMC Projects (India) 1,605.17 1,845.61 201.86 74.64 1,422.33 148.35 56.66 29.76 36.07 -4.64 31.73
Kolte Patil Developers 1,912.81 777.57 227.00 116.21 601.60 178.04 87.44 29.25 27.50 1.37 32.90
Mahindra Lifespace Devp. 2,002.75 430.69 17.55 25.71 234.15 14.20 20.61 83.94 23.59 48.83 24.75
Marathon Nextgen Realty 350.06 31.15 23.54 10.43 11.78 -8.32 22.78 164.42 382.78 -193.51 -54.21
NBCC (India) 6,075.00 3,556.70 25.63 -40.08 3,259.82 113.27 149.01 9.11 -77.37 382.12 -126.90
Oberoi Realty 18,874.59 1,094.70 448.06 287.45 1,480.37 757.55 520.99 -26.05 -40.85 25.03 -44.83
Omaxe 2,874.28 604.16 106.31 22.99 625.05 81.02 19.33 -3.34 31.21 -26.34 18.93
Phoenix Mills 12,451.45 1,030.11 503.51 211.14 817.90 393.52 110.51 25.95 27.95 -1.57 91.05
Prestige Estate Projects 12,547.50 3,461.60 1,137.60 271.40 2,183.80 622.20 215.70 58.51 82.84 -13.30 25.82
PSP Projects 1,776.78 619.79 85.94 58.25 444.67 62.37 38.64 39.38 37.78 1.17 50.73
Puravankara 1,307.88 1,241.86 265.08 73.55 859.21 183.87 49.02 44.54 44.17 0.26 50.04
Sobha 3,761.59 1,960.60 484.90 157.60 1,256.40 270.80 114.00 56.05 79.06 -12.85 38.25
Sunteck Realty 6,237.64 309.35 102.26 65.31 391.39 189.57 129.03 -20.96 -46.06 46.52 -49.38
Welspun Enterprises 1,045.89 832.41 89.31 59.80 615.07 56.81 52.51 35.34 57.21 -13.91 13.88
Ceramics/Marble/Granite/Sanitaryware
Asian Granito India 670.80 668.94 63.47 26.12 521.23 38.48 8.19 28.34 64.95 -22.19 218.90
Cera Sanitaryware 3,462.29 594.58 76.81 49.11 611.68 80.86 48.65 -2.80 -5.01 2.34 0.93
HSIL 317.38 908.93 147.44 29.32 1,165.06 95.45 6.77 -21.98 54.47 -49.49 333.09
Kajaria Ceramics 8,185.15 1,414.67 211.20 143.45 1,382.33 205.72 96.00 2.34 2.66 -0.32 49.43
Somany Ceramics 903.11 817.81 75.10 15.98 774.21 57.85 14.21 5.63 29.82 -18.63 12.46
Ceramics/Marble/Granite/Sanitaryware
Asian Granito India 670.80 668.94 63.47 26.12 521.23 38.48 8.19 28.34 64.95 -22.19 218.90
Cera Sanitaryware 3,462.29 594.58 76.81 49.11 611.68 80.86 48.65 -2.80 -5.01 2.34 0.93
HSIL 317.38 908.93 147.44 29.32 1,165.06 95.45 6.77 -21.98 54.47 -49.49 333.09
Kajaria Ceramics 8,185.15 1,414.67 211.20 143.45 1,382.33 205.72 96.00 2.34 2.66 -0.32 49.43
Somany Ceramics 903.11 817.81 75.10 15.98 774.21 57.85 14.21 5.63 29.82 -18.63 12.46
Glass
Asahi India Glass 4,886.11 1,360.11 231.69 62.14 1,506.50 250.75 85.45 -9.72 -7.60 -2.29 -27.28
Borosil Glass Works 1,462.69 208.64 20.30 28.76 159.21 15.01 22.25 31.04 35.31 -3.15 29.24
Empire Industries 426.60 270.09 33.04 14.63 234.32 29.75 34.05 15.27 11.05 3.80 -57.02
Gujarat Borosil 481.20 101.72 7.88 -6.60 105.97 25.06 8.57 -4.01 -68.53 205.05 -177.02
Hindusthan National Glass & 320.60 1,183.00 122.89 -55.06 1,147.91 63.13 -44.01 3.06 94.66 -47.06 -25.11
Industries
La Opala RG 1,601.18 125.96 52.31 45.15 127.61 58.85 36.02 -1.29 -11.11 11.04 25.37
Saint-Gobain Sekurit India 454.16 71.48 8.08 5.75 79.37 12.41 7.01 -9.94 -34.89 38.32 -17.92
Laminates/Decoratives
Greenlam Industries 2,267.61 638.54 78.40 35.88 606.53 73.07 33.53 5.28 7.30 -1.89 7.03
Stylam Industries 400.14 230.81 34.97 14.22 216.32 35.57 15.18 6.70 -1.68 8.52 -6.29
Wood & Wood Products
Century Plyboards (India) 3,576.99 1,163.06 185.38 100.28 1,101.70 160.77 83.19 5.57 15.31 -8.45 20.55
Greenply Industries 1,979.21 650.94 70.70 38.62 853.19 87.53 38.08 -23.70 -19.22 -5.55 1.42

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crore in H1FY20, increasing by 15.35 per cent, from

`23,003.26 crore in H1FY19. The continued positive growth in
sales can be attributed to the huge untapped market in India for
appliances such as air conditioners, washing machines and
refrigerators. The bottom line on a whole expanded by 8.44 per
cent to `1,673.75 crore in H1FY20, as compared to `1,543.39
crore in the first half of the previous fiscal year. The companies

Consumer Durables
that contributed the highest to the aggregate revenue in H1FY20
is Voltas, bringing in `4,075.94 crore, followed by Whirlpool Of
India, which reported its net sales to be `3,367.66 crore and

T
then, by Blue Star which reported `2,824.92 crore in sales.
he consumer durables sector has been one of the Looking ahead, the Indian Appliances and Consumer
fastest-growing sectors in the recent times in a developing Electronics (ACE) market is expected to increase in 2022, by 9
country like India, where semi-urban and rural areas are per cent CAGR to reach `3.15 trillion (US$ 48.37 billion),
getting connected with better infrastructure. Over 65 per cent of however, despite the current economic slowdown, whether it
the total revenue in this sector is generated from the urban can continue its growth or not, yet remains to be seen. In
population and the increased rate of urbanisation that has led to recognition of the weak market sentiments, the government has
better electrification, increases the demand for these goods. This embarked a course of corrections, including reductions in
sector comprises of a wide-range of household and industrial corporate tax and the customs duty on import of TV panels
appliances ranging from air conditioners and televisions to (open cells). The Government of India has allowed 100 per cent
washing machines, refrigerators, laptops and personal Foreign Direct Investment (FDI) under the automatic route in
computers. The demand for products in this sector can be highly Electronics Systems Design & Manufacturing (ESDM) sector.
seasonal in nature. Many of these products which were once The National Electronic Policy, passed in February 2019,
considered as luxury goods are almost considered as necessities provided an impetus to Make in India (MII) and its efforts to
today, due to a rise in disposable income. However, during the become a global hub for ESDM. The policy offers significant
time of economic slowdown, which the country is currently support for the electronics sector with a focus on exports and
experiencing, the consumer durable sector can also be one of the aims to drive domestic manufacturing. These initiatives, along
hardest-hit sectors. To study the consumer durable sector, we with macro tailwinds such as rural electrification and the
have taken the performance of 18 companies of this sector into infrastructure push by the government, are expected to boost
consideration. The aggregate revenue produced was `26,534.5 the demand for consumer durables in the future.
M Cap H1 FY20 H1 FY19 Change (%)
Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Air Conditioners
Amber Enterprises India 3,388.05 1,389.07 110.43 53.17 828.36 63.85 27.12 67.69 72.97 -3.05 96.07
Blue Star 7,606.39 2,824.92 188.43 112.60 2,540.03 194.73 118.37 11.22 -3.24 14.93 -4.87
Johnson Con.-Hitachi Air Cond. Ind. 5,179.73 1,328.50 112.66 62.96 1,140.96 89.50 51.22 16.44 25.88 -7.50 22.92
Voltas 21,560.45 4,075.94 397.09 304.10 3,569.45 351.73 295.77 14.19 12.90 1.15 2.82
Consumer Durables - Domestic Appliances
Bajaj Electricals 3,462.43 2,389.62 98.75 -15.59 2,738.37 159.75 74.61 -12.74 -38.18 41.17 -120.90
Butterfly Gandhimathi App. 358.48 393.52 32.88 10.57 341.72 26.27 7.60 15.16 25.17 -7.99 39.11
Crompton Greaves Con. Ele. 15,229.07 2,422.63 321.57 233.87 2,241.72 291.18 181.18 8.07 10.44 -2.14 29.08
Hawkins Cookers 1,958.47 334.66 57.88 40.63 293.42 44.38 28.28 14.05 30.42 -12.55 43.67
IFB Industries 2,847.26 1,410.72 80.33 31.28 1,301.82 73.96 47.91 8.37 8.61 -0.23 -34.71
Symphony 8,025.82 564.00 101.00 91.00 369.00 60.00 51.00 52.85 68.33 -9.20 78.43
TTK Prestige 7,839.76 1,007.19 142.75 116.75 971.14 136.44 89.67 3.71 4.62 -0.87 30.20
Whirlpool Of India 30,892.02 3,367.66 444.19 315.67 2,832.58 351.80 242.34 18.89 26.26 -5.84 30.26
Consumer Durables - Electronics
Dixon Technologies (India) 4,528.78 2,548.90 115.64 66.62 1,331.53 58.97 29.19 91.43 96.10 -2.38 128.23
Honeywell Automation India 23,455.54 1,684.55 319.21 234.31 1,552.68 252.93 189.10 8.49 26.20 -14.03 23.91
IT - Hardware
Control Print 390.08 101.28 26.24 14.90 84.61 20.30 15.04 19.71 29.26 -7.39 -0.94
Tejas Networks 759.64 249.31 30.58 1.47 442.86 107.14 78.51 -43.70 -71.46 97.24 -98.13
Watches & Accessories
KDDL 357.78 311.10 36.17 -1.26 301.75 25.84 10.46 3.10 39.98 -26.35 -112.05
Timex Group India 304.87 130.93 3.31 0.70 121.26 8.45 6.02 7.97 -60.83 175.65 -88.37

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The total market size of electrical machinery in India is

anticipated to reach US$ 100 billion by 2022 from US$ 24
billion in 2013.

India’s top export market with nearly 15 per cent share is US,
followed by UAE, Germany, UK, Nigeria and Singapore. As for
imports, China contributes by nearly 45 per cent, including
power project imports. Germany, Japan, US, South Korea and
Italy are some other major countries from which significant
imports take place. Indian electrical equipment manufacturers
are continuing to expand their business operations globally
with the companies aggressively targeting exports. The
government plans to make the country, the perfect choice for
production of electrical equipment by reaching an output of
US$ 100 billion via balancing exports and imports.

Currently, the sector faces challenges both domestically and

internationally such as of low-capacity utilisations in the
Transmission & Distribution (T&D) segment and also growing

Electricals &
threat of low-cost imports.

Government of India has de-licensed the electrical machinery

industry and has allowed 100 per cent Foreign Direct
Investment (FDI) in the sector. It intends to set up the Electrical

Electronics
Equipment Skill Development Council (EESDC) to focus on
identifying critical manufacturing skills required for the
electrical machinery industry. The coming fiscal years are
expected to be important and watchful for the Indian electrical

T
equipment industry, as it is set to meet the required rapidly
he electrical equipment industry in India is diverse as it rising domestic demand and also, for establishing its presence
manufactures a wide-range of high and low technology as an important player in the global electrical equipment arena
products. Being extremely dependent on the power amidst the current economic headwinds.
sector, it directly employs nearly half million people and also
provides indirect employment to another one million people. We have considered 22 companies for our analysis. Finolex
To enable economic growth, India’s power sector plays an Cables, which is the largest company by market cap and also a
important role which is witnessing increasing in investments, dominant player in the sector, reported muted growth of 1.22
with a capacity addition target expected of 93 GW in the per cent in net sales of `1,523.50 crore for H1FY20, compared
thirteenth plan (2017–2022). Hence, the electrical equipment to net sales of `1,505.15 crore in H1FY19. The company
industry has a steady growth, which is a result of government’s declared 11.7 per cent gain in net profit of H1FY20 to `204.69
focus on capacity augmentation across generation, transmission crore from `183.25 crore in H1FY19. Havells posted a degrowth
and distribution. The electrical equipment sector plays a crucial of 8.67 per cent YoY in new profit for H1FY20 to `355.28 crore.
role in improving the power sector infrastructure.
M Cap H1 FY20 H1 FY19 Change (%)
Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Electric Equipment
ABB India 26,880.58 3,576.00 269.39 158.76 5,238.21 384.89 204.64 -31.73 -30.01 -2.46 -22.42
Apar Industries 1,489.41 3,810.63 246.52 75.15 3,380.23 217.99 57.62 12.73 13.09 -0.31 30.42
Artemis Electricals 355.73 39.05 5.43 3.97 50.65 9.19 5.36 -22.92 -40.86 30.34 -25.90
Bharat Bijlee 441.58 421.71 26.57 17.46 434.51 26.09 18.89 -2.95 1.84 -4.70 -7.57
CG Power & Ind. Solutions 674.38 3,315.31 131.33 -132.06 3,140.15 281.59 44.09 5.58 -53.36 126.37 -399.52
Finolex Cables 5,433.17 1,523.50 190.40 204.69 1,505.15 215.62 183.25 1.22 -11.70 14.63 11.70
GE T&D India 3,767.72 1,554.73 46.26 -77.71 2,155.73 236.32 133.53 -27.88 -80.42 268.43 -158.20
Havells India 40,101.45 4,942.29 509.72 355.28 4,787.33 574.76 389.02 3.24 -11.32 16.41 -8.67
Hind Rectifiers 338.40 151.53 23.13 12.72 102.69 9.66 3.68 47.57 139.43 -38.37 246.14

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M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Honda Siel Power Products 1,239.08 415.19 59.18 44.55 365.78 45.54 26.47 13.51 29.95 -12.65 68.30
Igarashi Motors India 1,254.75 269.65 43.11 14.19 236.20 49.27 28.51 14.16 -12.51 30.48 -50.22
Inox Wind 757.85 398.20 33.48 -59.54 867.11 120.98 11.67 -54.08 -72.33 65.94 -610.20
Schneider Electric Infra. 1,527.87 671.55 -5.93 -33.85 662.46 16.60 -19.52 1.37 -135.70 383.96 -73.39
Siemens 54,178.35 7,327.20 759.30 578.70 7,012.20 720.90 483.60 4.49 5.33 -0.79 19.67
Suzlon Energy 1,069.27 1,652.23 -324.55 -1,114.22 2,482.35 -409.10 -1,199.05 -33.44 20.67 16.10 7.07
TD Power Systems 423.79 229.02 11.31 4.40 170.69 0.66 -8.43 34.17 1603.61 -92.12 152.27
V-Guard Industries 9,056.10 1,318.70 148.69 109.77 1,232.47 96.32 72.58 7.00 54.37 -30.69 51.24
Voltamp Transformers 1,195.69 382.22 41.56 42.80 354.87 35.51 30.44 7.71 17.04 -7.97 40.60
Electrodes & Welding Equip.
Ador Welding 393.20 258.24 19.96 14.55 227.97 17.41 10.87 13.28 14.65 -1.19 33.85
Esab India 1,935.83 353.79 48.50 35.58 338.09 40.88 29.68 4.64 18.64 -11.80 19.88
Graphite India 5,955.05 1,849.00 435.00 407.00 4,310.00 3,076.00 2,070.00 -57.10 -85.86 203.36 -80.34
HEG 4,268.08 1,380.89 486.84 413.42 3,381.18 2,556.78 1,659.20 -59.16 -80.96 114.49 -75.08

Sector Sponsor by 2020. ER & D revenues projected to reach US$ 42 billion by

FY22F from US$ 28 billion in FY18.

Construction equipment sales are forecasted to advance to

110,815 by the year 2022. Construction equipment market
projected to reach US$ 7 billion by 2020 from US$ 4.2 billion in
2017. The market size of textile machinery stood at US$ 4.85
billion in 2018 and is expected to reach US$ 5.2 billion by 2021.

Material handling equipment has four categories: Storage and

handling equipment, engineered systems, industrial trucks and
bulk material handling. With around 50 units in the organised
sector, the material handling equipment industry is engaged in
the setting up of coal/ore/ash handling plants and
manufacturing associated equipment.
BHEL plans to foray into Ukraine. BHEL won the order for
Renovation and Modernisation (R&M) of three units of the
power plant, located in Chamba district of Himachal Pradesh.
The R&M of the other two units is under various stages of
execution. RITES have demonstrated its capacity to execute

Engineering
across segments and are simultaneously able to protect its
margins in the H1 of FY20. Action Construction Equipment
(ACE), which is currently present in 20 countries, is expecting
to touch Top 50 countries in the next two years. BEML Ltd, a

O
defence public sector, signed a Memorandum of Understanding
f all the industrial manufacturing sectors, the (MoU) with IRCON International Ltd to explore opportunities
engineering sector is more diverse as it includes many in the overseas market by synergising each other’s strengths for
different companies. It plays a significant role as it large infrastructure projects in the transportation sector. Praj
serves as an input for several other industries. This also means Industries inks pact with Brazilian ethanol maker Dedini. L&T
that this sector is affected by the vagarities in other sectors. The Technology Services Ltd (LTTS NSE -0.26 per cent) won a
overall global economic and the domestic economic health have multi-million dollar project from one of the world's top plastics,
major effects on this sector. The biggest determinant of a chemicals and refining manufacturers, to deliver the entire
company’s performance is the order book size. Increasing spectrum of Engineering, Procurement and Construction
industrialisation and economic development drives growth in Management (EPCM) services for the expansion of an existing
the capital goods market. Turnover of the capital goods industry site in Europe.
is forecasted to grow to US$ 115.17 billion by 2025. Engineering
research and design segment revenues is set to increase fourfold Rising competition is driving domestic players to focus on

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 Economic Review For The First Half Of 2019 - 2020

improving their capabilities, become more quality-conscious from 356.10 GW in FY19 to 479.42 GW in FY22P. The increase
and upgrade their technology base in-line with global in installed power capacity is expected to boost demand for
requirements. More than 2,500 firms in the engineering sector power generation and transmission equipment.
have ISO 9,000 accreditation. To enhance competitiveness in
India’s capital goods industry, the Department of Heavy We analysed the performance of 31 companies. The companies
Industry has approved 4 Centres of Excellence in textile that showed the highest sales growth on YoY basis in H1FY20,
machinery, machine tools, welding technology and smart over the same period last year, include RITES Ltd (67.55 per
pumps. cent), CMI FPE Ltd (43.92 per cent), GMM Pfaudler Ltd (38.44
per cent), HLE Glascoat Ltd (44.82 per cent), Ion Exchange
Government of India has also renewed its focus on the (India) Ltd (61.43 per cent), ISGEC Heavy Engineering Ltd
development of infrastructure of the country. With this, the (31.45 per cent), Kirloskar Industries Ltd (1348 per cent) and
demand for construction equipment and other machinery is KSB Ltd (26.82 per cent). The companies that showed the most
expected to rise significantly. decline in sales in the same period include names such as
Action Construction Equipments Ltd (-17.45 per cent), Bharat
The growing energy requirement will require enhancement of Heavy Electricals Limited (-15.40 per cent), Mauria Udyog
installed power capacity. As per the National Electricity Plan (-30.01 per cent), Skipper Ltd (-34.99 per cent) and Yuken India
2018, the total installed power capacity is projected to increase (-13.38 per cent).
M Cap H1 FY20 H1 FY19 Change (%)
Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Engineering
Engineers India 6,372.83 1,458.63 246.41 191.85 1,254.73 177.83 184.40 16.25 38.56 -16.10 4.04
Kennametal India 2,177.60 466.40 54.70 31.30 422.81 57.87 36.02 10.31 -5.48 16.70 -13.10
L&T Technology Services 15,481.52 2,749.60 555.90 410.30 2,418.30 424.90 389.90 13.70 30.83 -13.09 5.23
Rites 7,280.00 1,245.43 296.93 325.26 743.30 212.95 198.80 67.55 39.44 20.17 63.61
Engineering - Industrial Equipments
Action Construction Equipment 798.35 561.47 42.05 26.25 680.20 48.09 29.06 -17.45 -12.56 -5.60 -9.66
AIA Engineering 15,610.02 1,429.89 322.71 291.54 1,455.84 303.39 226.32 -1.78 6.37 -7.66 28.82
BEML 4,037.23 1,268.81 -82.51 -122.77 1,188.73 -92.17 -143.45 6.74 10.48 -19.23 14.42
Bharat Electronics 24,073.54 4,844.23 892.85 544.22 5,483.47 1,164.93 751.04 -11.66 -23.36 15.26 -27.54
Bharat Heavy Electricals 14,798.77 10,757.40 0.15 -97.67 12,715.37 528.02 340.75 -15.40 -99.97 297708.73 -128.66
CMI FPE 396.11 195.58 15.37 13.57 135.89 3.82 13.77 43.92 302.57 -64.25 -1.46
Disa India 685.08 117.90 18.94 15.41 112.67 13.47 11.10 4.64 40.61 -25.58 38.83
Elecon Engineering Company 394.94 537.54 71.75 9.32 624.25 65.69 55.60 -13.89 9.23 -21.17 -83.24
Forbes & Company 2,207.79 100.57 2.09 -6.01 113.68 12.33 4.88 -11.53 -83.05 421.92 -223.16
Genus Power Infrastructures 593.21 550.71 83.01 44.41 461.93 52.40 26.76 19.22 58.42 -24.75 65.94
GMM Pfaudler 2,729.75 266.35 50.63 32.68 192.40 31.36 18.90 38.44 61.47 -14.27 72.95
HLE Glascoat 522.42 80.47 10.25 5.79 55.57 5.75 2.91 44.82 78.31 -18.78 98.76
Ion Exchange (India) 1,136.67 701.19 51.47 42.48 434.37 21.84 22.95 61.43 135.67 -31.50 85.10
ISGEC Heavy Engineering 2,513.97 2,260.77 138.33 78.67 1,719.90 108.10 59.75 31.45 27.96 2.72 31.67
Kirloskar Brothers 1,094.26 955.00 50.00 15.80 944.30 52.60 38.10 1.13 -4.94 6.39 -58.53
Kirloskar Industries 581.11 29.98 22.55 32.75 2.07 -4.98 35.31 1348.31 552.81 -419.85 -7.25
Kirloskar Oil Engines 2,136.67 1,448.37 116.96 81.09 1,582.00 147.15 90.87 -8.45 -20.52 15.19 -10.76
KSB 2,273.82 591.10 63.90 43.50 466.10 48.50 32.60 26.82 31.75 -3.75 33.44
Mauria Udyog 437.83 440.00 14.11 -10.40 628.62 32.42 4.76 -30.01 -56.48 60.82 -318.58
Nesco 4,671.50 198.90 129.64 111.79 175.50 112.91 85.63 13.33 14.82 -1.30 30.56
Praj Industries 1,845.45 505.74 23.05 24.90 442.63 18.10 12.43 14.26 27.35 -10.28 100.32
Shriram Pistons & Rings Ltd 1,610.88 855.72 99.67 47.70 951.90 147.36 70.39 -10.10 -32.36 32.91 -32.23
Skipper 475.88 651.82 77.21 9.64 1,002.66 83.78 6.99 -34.99 -7.83 -29.47 37.86
Thermax 12,566.22 2,998.30 229.42 88.46 2,462.90 179.35 123.52 21.74 27.92 -4.83 -28.38
Triveni Turbine 3,024.52 460.96 96.62 73.19 389.00 75.37 49.48 18.50 28.19 -7.56 47.92
Yuken India 571.26 114.37 8.65 3.47 132.04 10.12 6.01 -13.38 -14.54 1.36 -42.28

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Special Supplement
Economic Review For The First Half Of 2019 - 2020

Also, DTH subscription is growing rapidly, driven by content

innovation and product offerings.

Print Media industry is a constantly evolving industry with a

rising focus on digital reading which is changing preference of
the readers. The print industry has seen a significant growth as
rising income level and growing lifestyles have driven growth in
the magazine segment. Animation & Gaming segment has seen
a growth of more than 20 per cent on account of HD animated
movies, kids’ genre TV channels and mobile gaming.

Under Radio industry, the cabinet has granted permission to

135 FM channels under Phase III. Besides, the Indian film
industry has grown considerably, led by digitisation. Online

Entertainment
video platforms like YouTube would capitalise on the massive
shifts in consumer behaviour.

To analyse Entertainment segment, we have analysed 9 major

T
companies. During H1FY20, the aggregate sales of these
he Indian Media and Entertainment (M&E) industry is companies grew by 9 per cent while the aggregate operating
one of the fastest growing industries, witnessing a strong profit of these companies grew by 99 per cent YoY. However,
growth phase, improving advertising revenues and aggregate PAT went down by 62 per cent YoY. The two major
backed by rising consumer demand. The industry comprises of contributors were PVR and Inox Leisure. PVR H1FY20
television, radio, print, films, digital advertising, music, OOH revenue and operating profit grew by 32 per cent and 128 per
(Out Of Home), Animation & VFX, gaming and theme parks. cent YoY, respectively whereas, the net profit declined by 24 per
cent YoY. Inox Leisure H1FY20 revenue, operating profit and
Indian television industry segment is into a shining phase led net profit grew by 30 per cent, 148 per cent and 27 per cent,
by increasing digitisation. In 2019, media industry has faced respectively on YoY basis.
many structural changes like new cable TV pricing regime,
which has interrupted India’s television broadcasting sector To analyse TV broadcasting segment, we have analysed 11
significantly. Also, usage of online platforms like Hotstar, major companies. During H1FY20, the aggregate sales of these
Netflix and Amazon prime has expanded significantly leading companies declined by 3 per cent whereas, the operating profit
into a jump in the number of subscribers. This would again and net profit grew by 1 per cent and 10 per cent on YoY basis.
going to rise at a significant pace led by easy availability of
internet and upcoming 5G data. We expect media and entertainment industry to grow at a
healthy pace led by the government initiatives like Make in
Looking at the advertising segment, in 2019, advertising spend India, Skill India and Digital India. Further, due to an
has jumped by around 11 per cent in India led by world cup, increasing digitisation and rising usage of internet over the last
elections, penetration of regional and launch of new channels. couple of years, we expect this to augur well for the industry.
M Cap H1 FY20 H1 FY19 Change (%)
Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Film Production, Distribution & Entertainment
Balaji Telefilms 486.94 277.98 -27.96 -52.92 242.51 -46.59 -42.47 14.62 39.99 -91.01 -24.60
Inox Leisure 3,863.34 1,012.95 317.86 62.14 780.25 128.29 48.96 29.82 147.77 -47.60 26.92
Jump Networks 560.79 18.14 -5.02 -6.42 36.15 1.02 1.02 -49.80 -591.19 110.22 -727.79
Media Matrix Worldwide 475.75 316.89 -0.75 -1.87 669.04 -0.77 96.75 -52.64 2.48 51.43 -101.93
Prime Focus 1,237.39 1,332.07 199.92 -49.81 1,214.15 130.48 -79.95 9.71 53.21 -28.39 37.70
PVR 9,341.46 1,853.57 596.66 65.60 1,404.82 261.22 86.57 31.94 128.41 -42.23 -24.22
Saregama India 753.50 271.01 23.01 16.94 249.70 -3.32 23.55 8.53 793.07 -115.66 -28.07
Shemaroo Entertainment 379.46 293.36 60.41 35.78 286.69 81.53 42.53 2.33 -25.90 38.10 -15.87
UFO Moviez India 361.05 251.04 55.07 2.87 267.61 61.48 14.10 -6.19 -10.43 4.73 -79.65
Printing & Stationery
Gala Global Products 428.24 68.40 4.30 2.06 53.55 3.51 2.07 27.72 22.53 4.24 -0.44
Kokuyo Camlin 732.22 339.75 25.34 6.94 347.49 27.88 9.51 -2.23 -9.11 7.58 -27.04

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 Economic Review For The First Half Of 2019 - 2020

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Printing And Publishing
DB Corp 2,317.18 1,138.43 273.90 169.30 1,214.47 260.34 143.76 -6.26 5.21 -10.90 17.77
Hindustan Media Ventures 515.96 410.68 54.82 60.24 432.30 27.71 26.25 -5.00 97.83 -51.98 129.49
HT Media 324.68 1,060.73 62.60 -169.55 1,055.18 16.52 -39.71 0.53 278.93 -73.47 -326.97
Jagran Prakashan 1,886.10 1,098.78 231.22 191.36 1,156.01 263.15 133.18 -4.95 -12.13 8.17 43.68
MPS 859.92 171.83 46.89 37.48 172.72 45.09 33.95 -0.52 3.99 -4.33 10.40
Navneet Education 2,016.35 1,041.76 263.20 189.93 933.43 243.75 155.21 11.61 7.98 3.36 22.37
Repro India 775.51 206.01 24.83 12.69 196.13 20.87 10.71 5.04 18.97 -11.71 18.49
S Chand And Co 308.13 87.90 -93.57 -97.34 68.28 -128.73 -105.99 28.74 27.31 -77.11 8.16
Sandesh 433.35 173.84 32.96 30.63 210.69 40.07 28.19 -17.49 -17.75 0.31 8.66
TV Broadcasting & Software Production
Den Networks 2,013.88 645.58 89.70 20.52 624.55 97.23 -52.55 3.37 -7.74 12.04 139.06
Dish TV India 2,428.66 1,819.48 1,056.51 -131.81 3,249.92 1,097.37 45.21 -44.01 -3.72 -41.85 -391.55
Entertainment Network (India) 1,156.72 247.98 61.07 4.04 244.13 55.69 18.39 1.58 9.66 -7.37 -78.00
GTPL Hathway 793.43 1,054.47 226.44 68.37 609.36 162.69 29.00 73.05 39.19 24.33 135.78
Music Broadcast 781.25 132.31 40.88 26.94 155.82 52.62 26.88 -15.09 -22.31 9.30 0.22
Network 18 Media & Invest. 2,617.37 2,797.45 123.56 -139.99 2,736.34 110.55 -150.57 2.23 11.77 -8.53 7.03
NXT Digital 768.78 20.78 -88.80 -81.35 94.17 -9.61 -34.34 -77.93 -823.98 97.61 -136.87
Sun TV Network 17,540.71 1,896.94 1,151.65 748.38 1,869.94 1,288.68 760.46 1.44 -10.63 13.51 -1.59
TV Today Network 1,443.80 425.66 109.13 74.74 345.17 108.19 70.49 23.32 0.87 22.25 6.03
TV18 Broadcast 3,617.30 2,692.47 182.55 47.78 2,653.41 147.12 18.28 1.47 24.08 -18.22 161.38
Zee Entertainment Enterprises . 28,526.35 4,130.13 1,411.81 940.75 3,747.89 1,198.06 710.04 10.20 17.84 -6.49 32.49

as a source of Nitrogen, is one of the highest consumed

fertilizers. Since the country is the world’s second-largest
consumer of urea, the Indian Government is working toward
increasing its production to achieve self-sufficiency and end
imports by 2022.
Out of the overall production of fertilizers, the country
produces only 9 to 11 per cent of DAP, which is the second
most widely-used fertilizer after urea.

FY20 commenced on a subdued note with a delay in the

monsoons, which has considerably affected/delayed the Kharif
season sowing. However, the monsoon witnessed after August

Fertilizer
2019 has been the wettest monsoon in 25 years and is set to
help farmers in expanding the area required for the Rabi crops,
which would boost yields. The country received monsoon rains
during the June-September season that were 10 per cent above

I
ndia is the second-largest consumer of fertilizers in the
world, with an annual consumption of more than 55
million metric tonnes. Fertilizers have played a key role in
the success of India's green revolution and subsequent self-
reliance in food-grain production. The increase in fertilizer
consumption has contributed significantly to the sustainable
production of food grains in the country. The Indian fertilizers
market is expected to rise at a CAGR of 11.9 per cent during the
forecast period of 2019-2024.
Among the various type of fertilizers used in India, urea, used
average and the rainfall continued during the period from
October to November, increasing soil moisture levels required
for sowing the crops. The rainfall also lifted the water level in
India's key reservoirs to 86 per cent of capacity, 25 per cent
more than the capacity a year ago and 22 per cent more than
that of a 10-year average, according to the government data.
Hence, the demand for fertilizers is expected to go up during
this Rabi season.
Accordingly, the Government has made provisions for the
higher stock of all fertilizers, including urea. As per the
Agriculture Ministry, the expected need for urea during the

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Special Supplement
Economic Review For The First Half Of 2019 - 2020
2019-20 Rabi season would be 17.4 million tonnes (mt), nearly Petrochemical Industries reported a jump of 24 per cent, 103
seven per cent more than 16.24 mt consumed in the per cent, and 50 per cent, respectively, in their PAT. Meanwhile,
corresponding period last year. While the assessed requirement Zuari Agro generated a net loss against the net profit in the
for di-ammonium phosphate for the coming Rabi season is corresponding period last year.
5.16 mt as compared to 4.6 mt used in the previous season, the
stocks of NPK complex fertilizer to be made available is 5.01 Although the fertilizer sector is expecting the demand for
mt, nearly 17 per cent more than what was consumed in the fertilizers to go slight up on account of a healthier monsoon this
last year's rabi season. The demand for potassic fertilizers, such year, the actual demand may be even higher than what is
as MOP is expected to be even higher. anticipated. The Fertiliser Association of India said in a note that
For sector analysis, we have assessed 10 companies in the there would be a modest 2-3 per cent growth in the demand for
fertilizer sector based on their market cap. The revenue of fertilizers this year. The government has allocated nearly
Chambal Fertilizers, Rashtriya Chemicals & Fertilizers, and `80,000 crore to meet the fertilizer subsidy, of which around
National Fertilizers grew by 37 per cent, 14 per cent, and 15 per `56,000 crore is for urea and the remaining nearly `26,000 crore
cent YoY, respectively, in H1FY20. The revenue of all other is for nutrient-based subsidy for non-urea nutrients.
companies de-grew in double digits in H1FY20 on a YoY basis.
EBITDA of companies, such as Chambal Fertilizers (130 per As per the Care Ratings, the softening of raw material prices
cent) and Southern Petrochemical Industries (50 per cent) and a stable rupee would augment the production, going
grew exceptionally. Zuari Agro incurred loss at the operating forward. With the commissioning of the Gandepan-III urea
level in H1FY20 against the operating profit in H1FY19. PAT plant and the Ramagundam urea plant coming on board
of companies also rose significantly. For example, Coromandel during Q3FY20, the production of urea is also poised to
International, Chambal Fertilizers, and Southern increase.
M Cap H1 FY20 H1 FY19 Change (%)
Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Chambal Fertilisers & Chemicals 6,122.42 6,404.82 1,002.73 611.19 4,676.46 436.58 300.39 36.96 129.68 -40.37 103.47
Coromandel International 15,340.04 6,988.72 908.29 566.05 7,536.75 880.17 456.51 -7.27 3.19 -10.14 24.00
Deepak Fertilisers & Petro. Corp. 827.80 2,272.94 236.14 36.40 3,994.92 263.15 56.77 -43.10 -10.26 -36.60 -35.88
Gujarat Narmada Valley Fertilizers 2,676.31 2,542.29 212.02 148.29 3,245.92 683.45 481.85 -21.68 -68.98 152.47 -69.22
Gujarat State Fertilizers & Chem. 2,769.42 4,058.10 231.18 119.25 4,442.19 431.45 294.99 -8.65 -46.42 70.49 -59.57
Mangalore Chemicals & Fertilizers 338.95 1,471.80 117.78 22.58 1,669.43 118.77 25.17 -11.84 -0.83 -11.10 -10.29
National Fertilizers 1,258.33 6,209.00 162.83 -39.43 5,405.10 358.28 113.65 14.87 -54.55 152.76 -134.69
Rashtriya Chemicals & Fertilizers 2,548.80 4,866.08 133.84 -12.76 4,264.97 189.94 40.79 14.09 -29.54 61.92 -131.28
Southern Petrochemical Industries 380.81 1,181.86 60.24 23.57 1,447.13 40.08 15.75 -18.33 50.30 -45.66 49.63
Zuari Agro Chemicals 393.87 3,119.23 -10.31 -368.41 4,450.04 248.99 3.79 -29.91 -104.14 1792.80 -9820.58

Sector Sponsor

Finance
T
he Non-Banking finance sector continues to face issues
regarding credit offtake, liquidity and negative
consumer sentiment. The sector which completely lost
its momentum after IF & FS crisis last year; saw an increasing
number of NBFCs going haywire. Dewan Housing Finance

58 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in

 Economic Review For The First Half Of 2019 - 2020
Corporation (DHFL) saga is something that every investor will
look at as a key learning before investing in the sector. The
challenges for NBFC space refuse to leave its back as low credit
availability has fractured credit growth and slowdown in the
industry and also, hampered asset quality.
Recently, Reserve Bank of India (RBI) published Financial
Stability Report (FSR), which also mentioned the high stress and
impacted asset quality in the sector. The stability report has
showed that NBFCs witnessed asset quality stress in their
financials during first-half of the current fiscal. The gross NPA
ratio of the NBFC sector increased to 6.3 per cent in September
2019 from 6.1 per cent in March 2019. Though, its net NPA ratio
remained steady at 3.4 per cent during the period under review.
Commenting on the risk asset ratio, the report added that the
Capital to Risk Assets Ratio (CRAR) of the sector stood at 19.5
per cent at the end of the H1FY20, which is lower than 20 per
cent, as of FY19-end. The liquidity crisis was largely due to
asset-liability mismatch in the shadow banking sector. RBI has
introduced the Liquidity Coverage Ratio (LCR) requirement
for all deposit-taking and non-deposit taking NBFCs with an
asset size of `5,000 crore and above. It pointed out that the new
regulation mandates NBFCs to maintain a minimum level of
high-quality liquid assets to cover an expected net cash
outflows in a stressed scenario.
The report also added that the NBFCs were the largest borrowers
in the country’s financial system with nearly `8,29,468 crore
gross payables and gross receivables of around `66,635 crore as
of first-end of the current fiscal. The fund raising breakup gives
that these net payables were obtained majorly from banks, nearly
49 per cent of the total borrowings. The remainder of funds was
obtained from 26 per cent of the mutual fund companies and
21.3 per cent from the insurance firms.
Overall in India, the finance sector is largely distributed over
segments such as asset management, housing finance,
investment services, credit & lending, stock broking etc. The
asset management companies have certainly been an
outperformer in the sector. Segment leaders, HDFC and
Reliance Nippon asset management companies have given
returns as high as 113 per cent and 128 per cent, since
December 2018. The optimism for the segment is due to a large
scope of growth in the segment coupled with a strong AUM
growth. The domestic AUM has grown at CAGR of 24 per cent
between FY14-19. For H1FY20, the top-line growth remained
slow. HDFC AMC grew at 5 per cent YoY for the first-half while
Reliance Nippons top-line declined by 20.35 per cent YoY
during the same period.
The housing finance companies reported 21 per cent YoY
growth in the total interest income for H1FY20 over the same
period in the last fiscal year. Aavas Financial and HUDCO are
the top gainers in terms of the top-line growth registering 38
DSIJ.in
per cent each. The robust performance was aided by a strong
momentum in disbursements which increased by 21 per cent
YoY. The troubled financiers such as India Bulls housing
finance, on expected lines, reported a decline across the board
with top-line down by 7 per cent for H1FY20 and net profit
declining by 28 per cent for the company.
The housing finance companies are further well-supported by
government and regulators, who are making efforts with an aim
to improve the market sentiments and demand in the housing
segment. The National Housing Board (NHB) had announced
regarding provision of an additional liquidity support of
`30,000 crore to HFCs for easing the flow of funds in the
housing sector. In addition to this, RBI has plans to double the
limit of bank lending to NBFCs & HFCs for on-lending to
housing from `10 lakh to `20 lakh per borrower for
classification as priority sector housing.
The shadow banking segment, Bajaj Finance, continues to be
the leader which reported 48 per cent top-line growth as well as
53 per cent top-line growth. Top ten companies in (terms of
market) reported the total interest income growth of 19 per
cent for H1FY20, when compared the same performance last
year. The small credit providers such as IDFC Ltd, Tata
Investment Corporation Ltd, Bajaj Holdings & Investment Ltd,
on the other hand, reported a high interest income drop up by
16 per cent. This was largely due to weak operating strategies.
Unlike these companies, Bajaj Finance provides loan in a very
less time. Further, its presence across the segments and
geographies gives an edge to it.
The term lending majors such as PFC, REC, MAS Financial
services, IFCI and Satin Credit Care, reported a strong top-line
growth of 13 per cent on YoY basis for the first half. Segments
growth is led by MAS Financial services, which grew by 28 per
cent over the same period last year. Segments NII grew by 22.38
per cent for the period under review. The gains were led by
IFCI, which reported healthy NII growth of 64.47 per cent for
the period. Advances in the sector grew by 2.91 per cent over
previous reported number at the end of March 2019. MAS
Financial reported highest growth in advances of 13.65 per cent
at the end of H1FY20. The capital infusion will be a key trigger
for the sector.
Outlook
The sector certainly needs a much-larger scope from the
demand and consumption pickup. The weak consumer demand
has hit the credit offtakes in the sector. The liquidity crisis has
further impacted the sentiment for the companies. We expect
the sector to remain under pressure for some more time, till the
initiatives from the regulators and government start yielding
returns. In H2FY20, we hope a growth to be seen in the
established players such as Bajaj Finance and Bajaj Finserve.
Select HFCs may come up with a few positive surprises such as
Canfin Homes, Repco homes finance etc.
JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 59
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Economic Review For The First Half Of 2019 - 2020

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA PAT
Margin
Finance - Asset Management
HDFC Asset Management Company 68,515.42 1,002.39 786.93 660.03 951.59 532.72 411.17 5.34 47.72 -28.69 60.52
Reliance Nippon Life Asset Mgmt. 21,341.82 625.34 299.71 262.33 785.11 278.83 225.07 -20.35 7.49 -25.90 16.55
Finance - Housing
Aavas Financiers 14,620.58 428.64 327.58 121.31 310.45 223.37 65.35 38.07 46.65 -5.85 85.64
Can Fin Homes 5,216.31 984.50 925.59 178.60 826.64 790.26 154.12 19.10 17.12 1.68 15.89
GIC Housing Finance 859.73 622.23 527.56 4.97 594.45 541.01 95.65 4.67 -2.49 7.34 -94.80
Housing & Urban Devp. Corp. 7,146.78 3,851.22 3,712.51 1,061.52 2,755.30 2,302.37 615.52 39.77 61.25 -13.32 72.46
Housing Development Finance Corp. 417,439.15 26,477.73 24,135.50 7,164.63 20,129.23 18,902.92 4,657.08 31.54 27.68 3.02 53.84
Indiabulls Housing Finance 12,709.64 7,304.53 6,441.52 1,492.21 7,870.66 7,243.95 2,083.60 -7.19 -11.08 4.37 -28.38
LIC Housing Finance 21,496.12 9,780.06 9,017.54 1,382.88 8,217.17 7,666.18 1,141.10 19.02 17.63 1.18 21.19
PNB Housing Finance 7,196.76 4,460.64 3,904.85 651.28 3,456.37 3,090.77 508.78 29.06 26.34 2.15 28.01
Repco Home Finance 1,988.83 659.84 610.01 162.95 577.79 533.63 127.48 14.20 14.31 -0.10 27.82
Finance - Investment
Bajaj Finserv 149,014.85 26,493.52 9,459.60 3,476.10 18,467.87 6,768.50 2,519.17 43.46 39.76 2.65 37.99
BF Investment 1,214.78 36.61 35.27 29.45 28.63 27.38 28.43 27.89 28.81 -0.71 3.60
Capital India Finance 754.80 53.69 35.32 18.30 18.18 5.98 3.32 195.38 490.44 -49.97 451.57
Capri Global Capital 3,506.20 351.88 252.87 76.64 239.19 147.98 51.58 47.12 70.88 -13.91 48.58
Centrum Capital 815.42 0.99 -23.73 7.60 8.32 -15.01 306.23 -88.09 -58.09 92.47 -97.52
Cholamandalam Financial Holdings 9,376.30 22.43 21.41 19.49 33.42 32.54 30.22 -32.88 -34.20 2.01 -35.51
IIFL Finance 4,553.37 2,311.47 1,559.52 360.03 3,600.23 2,506.98 651.21 -35.80 -37.79 3.21 -44.71
JM Financial 7,343.40 1,695.78 1,280.39 391.34 1,788.16 1,382.55 439.26 -5.17 -7.39 2.40 -10.91
JSW Holdings 2,446.86 97.35 94.53 85.02 83.12 80.26 68.94 17.12 17.78 -0.56 23.33
Kalyani Investment Company 735.55 18.02 16.63 17.38 0.00 -0.97 17.43 1810.80 -0.27
Max India 2,071.77 25.92 -6.98 -9.25 28.89 2.35 1.17 -10.28 -397.02 130.21 -890.60
Max Ventures And Industries 810.10 860.32 98.30 34.00 449.38 10.43 -12.45 91.45 842.94 -79.70 373.04
Nalwa Sons Investments 380.44 34.96 11.82 15.12 23.46 22.13 27.67 49.03 -46.60 179.08 -45.35
Niyogin Fintech 481.09 10.87 -9.23 -9.29 8.16 -3.32 -1.36 33.26 -178.38 52.13 -580.87
Pilani Investment & Industries Corp. 1,378.06 81.78 79.84 55.44 46.98 45.39 43.36 74.07 75.91 -1.05 27.86
Rane Holdings 1,183.99 1,124.30 74.42 -29.23 1,279.63 112.07 -2.59 -12.14 -33.60 32.32 -1030.60
Religare Enterprises 1,091.88 0.00 -112.02 -277.09 2.94 -15.77 -29.91 -100.00 -610.27 -826.27
Sundaram Finance Holdings 1,002.57 36.41 22.27 21.60 51.21 39.38 35.20 -28.91 -43.45 25.71 -38.65
Superspace Infrastructure 2,150.12 0.00 -0.06 0.15 0.00 -0.17 0.08 63.64 97.44
Finance - NBFC
Aditya Birla Capital 22,692.73 7,621.69 3,053.10 364.64 6,615.54 2,433.19 267.23 15.21 25.48 -8.18 36.45
Arman Financial Services 559.14 100.80 71.68 24.15 62.04 41.75 10.02 62.48 71.72 -5.38 141.12
Bajaj Finance 252,056.58 12,122.70 8,436.19 2,701.54 8,192.37 5,679.80 1,759.36 47.98 48.53 -0.37 53.55
Bajaj Holdings & Investment 38,203.17 196.23 134.84 92.85 234.07 201.79 135.83 -16.17 -33.18 25.46 -31.64
Balmer Lawrie Investments 920.96 0.00 -0.44 80.66 0.00 -0.40 72.54 -9.95 11.19
Bengal & Assam Company 1,456.10 101.15 96.30 68.05 26.96 23.83 21.34 275.14 304.18 -7.19 218.93
Central Depository Services (India) 2,351.77 111.07 47.16 56.97 98.43 58.57 52.18 12.83 -19.48 40.13 9.18
Cholamandalam Invest. & Finance 23,542.29 4,226.44 3,319.66 621.20 3,272.76 2,589.12 589.92 29.14 28.22 0.72 5.30
CreditAccess Grameen 11,071.35 767.33 541.73 196.71 595.18 433.32 145.68 28.92 25.02 3.12 35.03
Edelweiss Financial Services 10,682.89 4,902.24 2,748.47 202.46 5,085.50 3,159.42 535.69 -3.60 -13.01 10.81 -62.21
Equitas Holdings 3,487.96 8.74 6.33 4.79 8.49 6.38 5.41 2.93 -0.74 3.70 -11.53
Finkurve Financial Services 467.36 4.62 3.69 1.28 7.79 7.07 1.46 -40.74 -47.89 13.72 -12.37
IDFC 5,667.07 51.20 38.56 28.34 151.12 132.24 127.50 -66.12 -70.84 16.19 -77.77
Indostar Capital Finance 1,601.76 842.98 571.41 96.50 548.80 411.24 95.46 53.60 38.95 10.55 1.09

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M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA PAT
Margin
L&T Finance Holdings 22,895.81 7,205.85 5,155.97 723.93 6,287.34 4,495.89 1,098.95 14.61 14.68 -0.06 -34.13
Magma Fincorp 1,407.79 1,294.06 729.01 38.56 1,210.47 725.14 139.67 6.91 0.53 6.34 -72.40
Mahindra & Mahindra Financial Serv. 19,867.32 4,880.38 2,890.75 320.20 4,029.11 2,722.23 650.44 21.13 6.19 14.07 -50.77
Manappuram Finance 14,588.55 2,460.98 1,755.41 679.88 1,950.26 1,283.86 423.99 26.19 36.73 -7.71 60.35
Motilal Oswal Financial Services 10,711.98 1,227.24 570.01 274.35 1,328.54 440.64 106.68 -7.62 29.36 -28.59 157.17
Muthoot Capital Services 899.52 288.90 163.62 27.63 255.95 138.85 40.77 12.87 17.84 -4.21 -32.23
Muthoot Finance 30,064.84 3,993.71 3,189.78 1,387.95 3,272.51 2,545.74 975.39 22.04 25.30 -2.60 42.30
NBI Industrial Finance Company 375.25 3.99 3.50 3.51 6.26 5.38 4.91 -36.22 -34.99 -1.88 -28.52
Paisalo Digital 1,819.41 185.49 125.54 35.82 178.41 123.73 41.01 3.97 1.46 2.47 -12.65
PNB Gilts 504.03 384.01 371.25 43.24 159.33 151.24 -33.18 141.02 145.47 -1.81 230.35
Premier Capital Services 1,035.11 0.00 -0.02 -0.02 0.00 -0.08 0.13 73.81 -116.92
PTC India Financial Services 825.33 700.92 584.41 59.88 665.81 595.30 105.65 5.27 -1.83 7.23 -43.32
Reliance Capital 356.32 11,132.00 -491.00 -2,716.00 9,927.00 2,804.00 528.00 12.14 -117.51 740.40 -614.39
Shriram City Union Finance 9,099.82 2,982.70 1,870.64 550.68 2,916.62 1,699.09 478.85 2.27 10.10 -7.11 15.00
Shriram Transport Finance Company 26,235.59 8,271.39 6,123.95 1,399.30 7,670.44 5,525.81 1,182.48 7.83 10.82 -2.70 18.34
Sindhu Trade Links 327.15 437.14 61.42 23.21 557.26 84.26 35.78 -21.55 -27.10 7.61 -35.14
SREI Infrastructure Finance 398.44 3,026.64 2,489.48 98.04 3,135.74 2,604.62 250.73 -3.48 -4.42 0.98 -60.90
Summit Securities 466.76 13.61 12.32 12.27 11.38 10.43 10.43 19.60 18.14 1.24 17.62
Sundaram Finance 18,064.38 1,916.75 1,531.94 426.52 1,568.38 1,273.90 295.04 22.21 20.26 1.63 44.56
Tata Investment Corporation 4,050.91 110.20 100.09 96.09 131.54 121.31 113.78 -16.22 -17.49 1.54 -15.55
The Investment Trust of India 592.90 261.39 39.60 -3.81 273.35 57.55 19.10 -4.38 -31.18 38.96 -119.98
Ugro Capital 1,127.08 39.11 -3.30 -7.73 10.81 4.26 1.82 261.75 -177.42 567.24 -524.85
Vardhman Holdings 410.11 30.78 29.09 28.45 27.33 25.98 24.48 12.62 11.97 0.58 16.22
Finance - Others
BSE 2,173.77 221.03 -6.93 63.27 232.14 27.86 78.73 -4.79 -124.87 482.78 -19.64
Max Financial Services 14,208.54 8,634.55 135.61 118.60 7,871.17 229.14 157.61 9.70 -40.82 85.36 -24.75
Finance - Stock Broking
5Paisa Capital 451.21 46.09 4.55 -4.04 21.84 -13.96 -12.68 111.09 132.58 -747.95 68.17
Dolat Investments 1,140.48 52.81 39.15 33.77 53.78 36.88 22.61 -1.81 6.15 -7.50 49.31
East India Securities 389.80 31.80 26.08 22.72 19.49 13.73 17.57 63.19 89.96 -14.09 29.37
Geojit Financial Services 646.98 140.89 36.42 15.34 148.21 31.11 19.86 -4.94 17.07 -18.80 -22.76
ICICI Securities 11,724.34 803.54 409.31 248.89 893.96 441.37 268.04 -10.11 -7.26 -3.07 -7.14
Indiabulls Ventures 11,414.26 1,489.18 842.84 256.54 820.93 522.84 228.42 81.40 61.20 12.53 12.31
Multi Commodity Exchange Of India 5,908.42 179.60 74.96 115.63 143.97 47.81 43.26 24.75 56.79 -20.43 167.29
Finance Term Lending
IFCI 1,110.88 1,008.61 1,139.28 -1.68 1,074.62 32.73 -357.32 -6.14 3380.84 -97.30 99.53
MAS Financial Services 4,730.73 345.88 266.34 89.51 270.22 202.56 66.88 28.00 31.49 -2.66 33.84
Power Finance Corporation 29,344.50 15,603.16 14,472.21 2,540.02 14,434.58 13,364.45 2,728.38 8.10 8.29 -0.18 -6.90
REC 27,372.36 14,408.82 13,228.00 2,808.10 13,024.76 11,453.03 3,233.03 10.63 15.50 -4.22 -13.14
Satin Creditcare Network 1,007.20 718.65 449.42 95.18 700.48 441.33 73.63 2.59 1.83 0.75 29.27
Tourism Finance Corp. Of India 603.36 142.97 111.73 41.51 108.93 101.59 36.19 31.25 9.98 19.34 14.70
Ujjivan Financial Services 4,095.61 11.00 6.88 11.34 0.00 -3.63 -0.50 289.40 2358.76
Insurance
General Insurance Corp. of India 39,842.42 28,648.18 -3,814.24 -486.85 25,593.34 -2,721.22 1,285.26 11.94 -40.17 20.14 -137.88
HDFC Life Insurance Co 128,292.56 13,904.84 -2,782.95 733.31 11,778.83 -2,432.48 667.16 18.05 -14.41 -3.18 9.92
ICICI Lombard General Insurance Co 64,659.42 4,601.81 -111.48 617.72 4,066.91 -111.27 582.39 13.15 -0.19 -12.94 6.07
ICICI Prudential Life Insurance Co. 70,888.03 14,272.84 -2,068.39 586.80 13,039.02 -3,295.95 582.51 9.46% 37.24% -74.43% 0.74%
SBI Life Insurance Company 99,065.39 16,766.53 -5,205.81 501.74 12,416.07 -3,524.51 604.84 35.04% -47.70% 8.57% -17.05%
The New India Assurance Co. 22,783.60 11,263.26 -2,303.01 808.08 10,372.65 -1,947.86 963.83 8.59% -18.23% 8.16% -16.16%

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respectively. EBITDA of all these companies, increased by

nearly 13.2 per cent YoY in H1FY20 while, Profit after Tax
(PAT) surged by nearly 17.4 per cent YoY to `18,637 crore. In
terms of bottom-line growth, DFM foods and Godfrey Phillips
reported a strong PAT growth of nearly 86 per cent and 81 per
cent YoY in H1FY20, respectively.

During this challenging time, the players who have been

consistently expanding their presence (increasing distribution
network), focussing on new and innovative product launches
and spending on promotional activity, are likely to be winners

FMCG
going forward. Overall, nowadays, the companies are focussing
on increasing their direct reach, which would help them to
sustain their market position and scale-up operations in the

T
coming years. Also, e-commerce is likely to play a crucial role in
he Fast-Moving Consumer Goods (FMCG) industry in the FMCG growth story. Besides, the companies are focussing on
India has been registering a strong performance over the smaller packs of mid-premium and premium products to
last few years while scaling up their premium product, penetrate in rural India. Notably, the country’s relatively low per
which has helped FMCG companies to post stellar numbers. capita consumption and aspirations for premium products are
However, in the last few months, the whole industry has been likely to be the key triggers in the long-run. In the near-term,
hit due to the economic slowdown and severe monsoon, comparatively lower raw material prices and most of the
resulting in muted demand. Also, the liquidity crunch in the companies' cost efficiency initiative are likely to act as a cushion
country has hit the smaller companies and dealers, for margins, thereby, pushing profitability. Notably, the recent
consequently, impacting on the working capital of these corporate tax cut is likely to be a game-changer for all the
companies. However, benign few raw material prices have industry players, as this will result in higher profitability, which
helped companies to maintain their margins. in turn, can be utilised for the promotion and marketing of
products or the benefits that can be passed on to the end-users or
To analyse the performance of the FMCG industry, we have as reward to the shareholders (dividend, buyback, etc.).
taken financial performance of 42 companies into
consideration. The aggregate sales of all these companies grew However, the valuations of most of the FMCG companies are at
by nearly 8 per cent in the first half of FY20 to `1,11,722 crore. peak level, owning to the expected revival in the profitability,
In this H1FY20, Zydus Wellness and Hindustan Foods reported thus, we need to wisely select the investment opportunity that
stellar sales growth of 236 per cent and 97 per cent YoY lies in the FMCG universe.
M Cap H1 FY20 H1 FY19 Change (%)
Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Cigarettes/Tobacco
Godfrey Phillips India 6,709.56 1,578.96 340.67 230.19 1,257.83 214.88 127.12 25.53 58.54 -20.82 81.08
ITC 291,053.86 23,374.29 9,128.05 7,197.04 22,147.10 8,408.09 5,773.35 5.54 8.56 -2.78 24.66
VST Industries 6,476.42 652.27 211.59 152.00 574.16 187.01 118.37 13.60 13.14 0.41 28.41
Consumer Food
ADF Foods 610.99 122.67 18.07 18.47 114.52 22.94 16.35 7.12 -21.22 35.97 12.97
Agro Tech Foods 1,553.18 402.12 33.05 22.42 407.98 31.94 15.59 -1.44 3.48 -4.75 43.81
Avanti Feeds 7,819.14 2,157.80 265.84 228.16 1,794.79 204.20 144.79 20.23 30.19 -7.65 57.58
AVT Natural Products 465.23 176.85 25.31 13.74 148.12 11.52 8.29 19.40 119.62 -45.64 65.85
Britannia Industries 73,619.37 5,749.19 886.86 651.34 5,413.42 843.73 561.20 6.20 5.11 1.04 16.06
DFM Foods 1,418.32 263.58 32.31 22.40 217.03 27.46 12.06 21.45 17.66 3.22 85.74
Glaxosmithkline Con. Healthcare 35,102.71 2,539.41 676.21 593.39 2,379.13 583.96 475.93 6.74 15.80 -7.82 24.68
Godrej Agrovet 9,692.35 3,553.70 261.60 173.60 3,072.71 279.98 170.36 15.65 -6.56 23.78 1.90
Hatsun Agro Products 9,280.36 2,701.77 298.50 76.43 2,422.78 246.35 76.12 11.52 21.17 -7.97 0.40
Heritage Foods 1,581.94 1,540.90 32.07 29.86 1,260.97 -80.29 42.59 22.20 139.94 -405.92 -29.88
Hindustan Foods 912.36 191.19 15.94 7.42 96.92 9.19 4.93 97.26 73.43 13.74 50.44
IFB Agro Industries 369.67 967.39 25.95 17.84 924.35 39.02 23.33 4.66 -33.50 57.37 -23.56
Jubilant FoodWorks 21,091.29 1,928.32 454.06 150.71 1,736.42 289.60 152.35 11.05 56.79 -29.17 -1.08
KRBL 6,548.55 2,107.54 403.63 249.51 1,988.29 416.21 257.27 6.00 -3.02 9.30 -3.02
KSE 392.00 695.39 -11.26 -8.63 609.35 33.41 23.07 14.12 -133.71 438.57 -137.38

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 Economic Review For The First Half Of 2019 - 2020

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
LT Foods 671.67 1,951.92 223.46 93.67 1,767.78 188.88 77.80 10.42 18.31 -6.67 20.40
Marico 43,795.29 3,995.00 814.00 567.00 3,863.61 648.96 477.46 3.40 25.43 -17.56 18.75
Nestle India 140,761.64 6,003.80 1,435.00 901.12 5,455.64 1,341.89 819.06 10.05 6.94 2.91 10.02
Parag Milk Foods 1,162.04 1,269.77 112.33 56.00 1,122.91 117.86 58.70 13.08 -4.69 18.64 -4.59
Prabhat Dairy 793.62 136.78 -2.31 21.21 804.14 71.68 23.42 -82.99 -103.23 626.92 -9.42
Prataap Snacks 1,987.88 719.00 58.36 21.64 555.83 38.86 21.65 29.35 50.18 -13.87 -0.02
Tasty Bite Eatables 2,145.18 196.53 19.10 18.65 171.63 26.35 15.10 14.50 -27.52 57.98 23.50
Vadilal Industries 508.47 405.38 87.03 60.48 361.91 73.33 42.33 12.01 18.68 -5.62 42.86
Varun Beverages 20,063.87 4,232.07 1,006.25 442.93 3,219.52 747.55 324.77 31.45 34.61 -2.34 36.38
Waterbase 568.58 212.83 30.90 20.31 250.07 41.90 26.45 -14.89 -26.25 15.39 -23.23
Zydus Wellness 8,324.11 946.28 142.41 68.38 281.26 60.61 68.51 236.44 134.96 43.19 -0.19
Household & Personal Products
Bajaj Consumer Care 3,430.17 457.33 132.67 115.95 434.14 129.70 105.42 5.34 2.29 2.98 9.99
Colgate-Palmolive (India) 39,681.34 2,306.66 622.77 413.22 2,209.33 611.16 385.88 4.41 1.90 2.46 7.09
Dabur India 80,869.68 4,485.26 947.17 766.92 4,205.65 836.95 707.06 6.65 13.17 -5.76 8.47
Emami 13,801.90 1,308.69 327.12 136.96 1,242.40 312.91 109.63 5.34 4.54 0.76 24.93
Galaxy Surfactants 5,124.45 1,313.84 184.10 119.62 1,401.52 175.66 92.03 -6.26 4.80 -10.55 29.98
Gillette India 21,532.15 929.48 176.15 133.58 861.30 177.80 105.94 7.92 -0.93 8.93 26.09
Godrej Consumer Products 69,915.81 4,978.95 1,027.50 821.03 5,135.20 930.99 982.43 -3.04 10.37 -12.15 -16.43
Hindustan Unilever 421,077.59 19,966.00 5,090.00 3,603.00 18,721.00 4,270.00 3,054.00 6.65 19.20 -10.53 17.98
Jyothy Labs 5,456.72 875.85 144.61 89.13 832.97 134.15 77.72 5.15 7.80 -2.46 14.68
Orient Electric 4,163.08 1,002.99 65.98 23.79 810.68 43.64 18.93 23.72 51.18 -18.16 25.68
Procter & Gamble Hygiene 37,280.02 1,336.63 208.46 150.90 1,093.54 217.71 127.79 22.23 -4.25 27.65 18.08
Sheela Foam 6,266.88 1,011.52 132.68 97.46 1,037.50 92.95 56.95 -2.50 42.74 -31.70 71.13
VIP Industries Ltd. 5,887.28 976.45 191.32 68.00 919.59 147.26 96.16 6.18 29.92 -18.27 -29.28

I
ndia has a rich cultural, historical heritage, geographical
diversity and natural beauty spread across its lands, making
it an attractive destination for both domestic and foreign
tourists. The tourism industry is widely-touted as a multiplier,
driving growth in the Indian economy since it not only helps
bring in foreign exchange but contributes enormously to
employment. Additionally, it also encourages the development
of multiple-use infrastructure including hotels, resorts,
restaurants, transport infrastructure, aviation, roads, shipping,
railways and healthcare facilities.

Digitalisation has changed the face of the industry over the

years. The widespread use of the internet and improved
communications has put relatively unknown Indian tourist
destinations on the map. Tourists are now using various digital
tools to plan, book and organise various trips and this has

Hospitality
made it a pleasant experience than it was before. Digitalisation
has also led to the emergence of online players such as
MakeMyTrip, Airbnb, Oyo Rooms and initiatives like
CouchSurfing which offer better pricing, location and
convenience. These digital options have provided support to
the growth of domestic and outbound tourism in India.

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International hotel chains have a growing presence in the
country and are expected to increase their market share in the
Hospitality industry in India. It is estimated that international
hotel chains will enjoy a 50 per cent market share by 2022. A
good example of such a company is Marriott International,
which is looking to grow its footprint in India by adding 50
hotels that will provide 15,000 more rooms over the next five
years. According to the data released by the Department for
Promotion of Industry and Internal Trade (DPIIT), the tourism
sector attracted Foreign Direct Investments (FDI) of around
`75,000 crore between April 2000 and July 2019, contributing
2.97 per cent to the total FDI inflow in the country.
The Foreign Tourist Arrivals (FTA) from January 2019 to
November 2019 was 96,69,633 as compared to 93,66,478 in
January 2018 to November 2018, registering a growth of 3.2 per
cent. Majority of the foreign tourists came from Bangladesh
(19.34 per cent), followed by United States (14.64 per cent), UK
(9.23 per cent), Canada (4.03 per cent) and Australia (3.81 per
cent). The growth in FTAs on a YoY is muted and this can be
attributed to the global economic slowdown and various
geopolitical issues like the Hong Kong protest, the uncertainty
in Europe due to Brexit, US-China Trade war, etc.
To study the Hospitality sector, we have taken into
consideration the performance of 15 of the top companies in
this sector and compared their performance in H1FY20 with
that in H1FY19. On an average, the revenue reported by these
companies de-grew by 7 per cent from H1FY19 to H1FY20.
The bottom line fell on an average by 11 per cent from H1FY19
to H1FY20, clearly indicating the negative sentiment in the
industry. The companies which performed the best in terms of
growth in sales were- Lemon Tree Hotels, followed by
Wonderla Holidays and Mahindra Holidays and Resorts. On
the other hand, Hotel Leela Venture, Mac Charles (India) and
Oriental Hotels were among those that reported the largest
decline in sales volume. There were six companies on the list
that reported net losses in H1FY20, namely, Asian Hotels
(West), Lemon Tree Hotels, Oriental Hotels, Sayaji Hotels,
Speciality Restaurants and Thomas Cook (India).
The government is definitely doing its part to weather the
storm. Under Union Budget 2019-20, the government
introduced a Tax Refund for Tourists (TRT) scheme like in
countries such as Singapore to encourage tourists to spend
more in India and boost tourism. This scheme provides an
opportunity to the foreign tourists to purchase goods during
their stay in any country on payment of GST and obtain a
refund of the GST at the time of exit from the country. The
government has also launched several branding and marketing
initiatives such as Incredible India and Athiti Devo Bhava to
provide a driver to growth. A fresh category of visa - the
medical visa or M visa was launched for people seeking
speciality medical treatment in India for extended periods in
order to promote medical tourism in the country.
Additionally, the government plans to develop 17 sites into
world-class tourist destinations to boost travel and tourism in
the sector. Such steps taken by the government to boost
infrastructure and provide an incentive to tourist to spend are
expected to stimulate the demand and facilitate growth for the
tourism and hospitality industry as a whole.

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Amusement Parks/Recreation/Club
Wonderla Holidays 1,367.19 158.44 74.08 42.19 145.18 66.55 33.91 9.13 11.32 -1.96 24.42
Hotel, Resort & Restaurants
Asian Hotels (West) 419.44 208.24 69.02 -8.23 199.34 60.89 9.08 4.47 13.35 -7.84 -190.62
EIH Associated Hotels 929.43 92.64 2.53 6.85 94.37 7.15 2.42 -1.83 -64.56 177.01 183.61
EIH 7,813.35 577.30 37.92 33.90 668.43 84.89 36.67 -13.63 -55.33 93.35 -7.55
Hotel Leela Venture 373.29 64.45 -11.65 0.78 320.34 -28.28 -133.22 -79.88 58.80 51.16 100.59
India Tourism Development Corp. 2,705.17 142.97 3.78 1.50 159.14 8.00 16.81 -10.16 -52.76 90.19 -91.04
Lemon Tree Hotels 5,090.18 293.69 93.20 -4.63 256.55 70.83 8.01 14.48 31.57 -13.00 -157.76
Mac Charles (India) 471.45 26.00 11.04 1.89 40.95 18.07 12.31 -36.50 -38.89 3.91 -84.62
Mahindra Holidays & Resorts Ind. 3,053.71 484.09 82.59 36.05 443.93 50.04 28.19 9.05 65.05 -33.93 27.87
Oriental Hotels 590.27 134.78 9.09 -8.26 163.02 15.44 75.11 -17.32 -41.13 40.43 -111.00
Sayaji Hotels 404.75 89.27 14.76 -8.71 93.58 10.85 -2.86 -4.60 35.96 -29.84 -205.01
Speciality Restaurants 293.02 176.09 29.46 -5.81 164.32 1.24 -7.96 7.16 2275.81 -95.49 27.01
Taj GVK Hotels & Resorts 1,012.32 145.49 32.81 8.60 144.00 24.10 5.81 1.03 36.14 -25.79 48.02
The Indian Hotels Company 17,065.86 2,027.44 333.90 90.23 1,944.23 209.89 -31.94 4.28 59.08 -34.45 382.50
Travel Services
Thomas Cook (India) 2,596.86 4,017.55 93.44 -6.73 3,684.41 94.62 50.16 9.04 -1.25 10.43 -113.42

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 Economic Review For The First Half Of 2019 - 2020
IT
I
T industry in India is a key part of the country’s economy.
In the financial year 2019, this industry in India generated
annual revenue close to 180 billion US dollars, a significant
increase from the generated revenue ten years ago. A majority
of this revenue was generated in exports while domestic
revenue totaled to less than 50 billion USD for the mentioned
period. IT industry contributed around 7.7 per cent to the
country’s GDP. IT industry employs nearly 39.7 lakh people in
India. The industry is fuelling the growth of start-ups in India,
with the presence of around 5,300 tech start-ups in India.
BFSI is a key business vertical for the IT-BPM industry. A major
share of revenue of IT majors comes from the BFSI business
vertical. Adoption of new technologies is expected to accelerate
growth of the BFSI vertical. The need for undertaking
investments in IT will also be required for gaining competitive
advantage instead of solely reducing operational costs.
US have traditionally been the biggest importer of Indian IT
exports; over 62 per cent of Indian IT-BPM exports were
absorbed by the US. Non US-UK countries accounted for just
21 per cent of total Indian IT-BPM exports. Both US and UK
are the leading customer markets with a combined share of
nearly 80 per cent. However, there is a growing demand from
APAC, Latin America and Middle East Asia. Being the low cost
exporter of IT services, India is going to attract more markets in
other regions in the same manner as it tapped US markets.
India's IT and business services market is likely to grow by over
8 per cent to reach USD 13.1 billion by the year-end and
expand further to USD 14.3 billion by 2020, according to
research firm IDC.
DSIJ.in
Indian government's higher spending on the Digital India and
Smart Cities initiatives and the increased adoption of next-gen
technologies by organisations is driving growth in the IT
services market. The other emerging verticals which are
expected to adopt IT services and futuristic technologies more
aggressively in the next 3-5 years are the manufacturing, retail,
healthcare and education verticals. Additionally, a number of
technology start-ups offering niche solutions in artificial
intelligence, machine learning, Internet of Things (IoT),
blockchain, automation, etc have come up, which is further
driving adoption of IT services in the country.
IT-SEZs have been initiated with an aim to create zones that
lead to infrastructural development, exports and employment.
As of May, 2019, there were 273 approved SEZs across the
country. Software Technology Parks of India (STPI) has set up
57 centres across the country which provides single window
clearance and infrastructure facilities. Under STP scheme, STP
units can avail Excise Duty exemptions on procurement of
indigenously manufactured goods.
IT & ITeS is the leading sector in receipts of private equity (PE)
investments in India. PE investments in the sector stood at US$
3.6 billion in Q3 2019. Venture Capital (VC) investments in the
IT & ITeS sector stood at US$ 67.0 million during Q3 2019.
Baring Private Equity Asia (BPEA) is going to acquire a 30 per
cent stake in NIIT technologies Ltd for a consideration of
`2,627 crore (US$ 375.88 million).
Technologies, such as telemedicine, health, remote monitoring
solutions and clinical information systems, would continue to
boost demand for IT service across the globe. IT sophistication
in the utilities segment and the need for standardisation of the
process are expected to drive demand. Digitisation of content
and increased connectivity is leading to a rise in IT adoption by
media. RBI is executing a plan to reduce online transaction
costs to encourage digital banking in India. The rollout of Fifth
Generation (5G) wireless technology by telecommunication
companies is expected to bring at least US$ 10 billion global
business to Indian IT firms by 2019-25.
The companies that showed the highest sales growth on YoY
basis in H1FY20, over the same period last year, include
Mindtree (31 per cent), Mphasis (23 per cent), Zen
Technologies (557 per cent) and Infibeam avenues (41 per
cent). The companies that showed the most decline in sales in
the same period include names like Vakrangee Ltd (-78 per
cent), Birlasoft Ltd (26 per cent), Xchanging Solutions Ltd (-13
per cent).
IT majors like TCS, Infosys, Wipro, HCL Technologies, all
showed sales growth. TCS sales increased 8.48 per cent to
`77,149 crore in H1FY20 from `71,115 crore in H1FY19.
Infosys sales increased 23.85 per cent to `44,432 crore in
H1FY20 from `35,877 crore in H1FY19. Wipro and HCL also
showed sales growth on 9.04 per cent and 18.15 per cent in the
same period, respectively.
JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 65
Special Supplement
Economic Review For The First Half Of 2019 - 2020

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
BPO/ITeS
Allsec Technologies 429.57 146.43 40.00 25.36 131.73 13.79 10.08 11.16 190.07 -61.68 151.59
eClerx Services 2,055.17 711.19 142.88 83.51 707.84 160.18 130.08 0.47 -10.80 12.64 -35.80
Firstsource Solutions 2,788.15 1,964.69 298.13 158.56 1,873.85 260.95 181.41 4.85 14.25 -8.23 -12.59
Hinduja Global Solutions 1,292.44 2,581.06 315.51 89.58 2,259.45 150.74 85.08 14.23 109.31 -45.42 5.30
Info Edge (India) 31,021.70 629.38 200.28 76.00 524.54 166.78 141.09 19.99 20.09 -0.09 -46.13
Matrimony.Com 1,011.68 187.72 30.64 17.15 177.07 37.90 29.00 6.02 -19.16 31.15 -40.87
Vakrangee 4,317.08 278.63 -1.69 18.68 1,309.97 -5.37 15.07 -78.73 68.59 32.28 24.01
IT - Education
Aptech 635.11 123.08 24.76 14.05 102.38 17.44 11.79 20.22 41.97 -15.32 19.17
NIIT 1,577.05 446.84 45.62 1,300.22 442.72 37.68 -2.37 0.93 21.08 -16.64 55054.18
IT - Networking
D-Link (India) 343.51 372.07 23.64 17.36 346.56 18.49 8.61 7.36 27.83 -16.01 101.50
IT - Software
3I Infotech 320.10 576.27 54.04 16.00 515.61 37.09 14.92 11.76 45.70 -23.29 7.24
63 Moons Technologies 462.17 69.04 -55.84 -9.13 73.77 -46.28 36.00 -6.42 -20.64 22.43 -125.36
Accelya Solutions India 1,589.80 215.29 80.48 52.88 191.63 72.34 43.93 12.34 11.24 0.99 20.38
Birlasoft 1,982.31 1,550.61 162.69 82.63 2,092.71 267.98 170.20 -25.90 -39.29 22.05 -51.45
Brightcom Group 315.75 230.22 8.26 -24.11 228.88 8.43 -6.10 0.59 -2.01 2.65 -295.46
Cigniti Technologies 823.39 422.18 67.00 64.22 399.67 65.33 88.68 5.63 2.55 3.00 -27.58
Cyient 4,492.32 2,247.90 303.40 187.20 2,266.90 290.70 208.40 -0.84 4.37 -4.99 -10.17
Datamatics Global Services 417.36 586.90 69.10 41.47 540.71 63.02 44.04 8.54 9.64 -1.00 -5.83
HCL Technologies 152,195.91 33,954.00 7,829.00 4,941.00 28,738.00 6,700.00 4,965.00 18.15 16.85 1.11 -0.48
Infibeam Avenues 3,652.64 320.60 62.69 19.99 226.16 6.84 -18.41 41.76 816.52 -84.53 208.58
Infosys 310,561.05 44,432.00 10,791.00 7,839.00 35,877.00 9,747.00 8,819.00 23.85 10.71 11.86 -11.11
Intellect Design Arena 1,880.14 669.37 5.79 -9.82 679.22 50.47 77.72 -1.45 -88.53 758.85 -112.64
KPIT Technologies 2,438.51 1,049.85 135.54 67.74 0.00 0.00 0.00
Larsen & Toubro Infotech 30,790.32 5,055.60 923.50 716.10 4,486.90 897.90 761.50 12.67 2.85 9.55 -5.96
Majesco 1,082.68 498.73 49.04 28.81 471.90 45.40 41.35 5.69 8.02 -2.16 -30.33
Mastek 976.56 489.00 59.39 48.86 500.48 61.63 47.56 -2.29 -3.63 1.39 2.73
Mindtree 13,043.94 3,748.50 432.30 227.70 2,841.70 442.90 323.70 31.91 -2.39 35.14 -29.66
Mphasis 16,558.40 4,220.67 779.46 538.00 3,405.18 583.62 452.62 23.95 33.56 -7.19 18.87
Newgen Software Tech. 1,369.45 284.96 16.86 7.31 256.13 21.39 21.64 11.26 -21.20 41.18 -66.24
NIIT Technologies 10,043.80 2,001.20 330.10 214.90 1,732.30 295.60 207.10 15.52 11.67 3.45 3.77
Nucleus Software Exports 819.82 252.27 39.07 37.66 234.10 38.37 36.73 7.76 1.82 5.83 2.53
Onmobile Global 320.79 283.23 16.03 3.19 298.10 15.36 19.48 -4.99 4.36 -8.96 -83.62
Oracle Fin. Services Software 24,337.04 2,437.58 1,137.25 736.23 2,558.14 1,123.27 753.88 -4.71 1.24 -5.88 -2.34
Persistent Systems 5,109.39 1,716.71 241.84 168.54 1,544.44 245.90 165.38 11.15 -1.65 13.02 1.91
Quick Heal Technologies 840.75 154.84 61.61 49.65 161.64 69.55 44.15 -4.21 -11.41 8.13 12.47
Ramco Systems 518.19 288.95 55.09 10.44 257.11 47.44 10.85 12.38 16.14 -3.23 -3.79
Sasken Technologies 873.55 260.36 41.85 45.93 247.36 34.04 44.90 5.26 22.96 -14.40 2.29
Sonata Software 3,229.44 1,577.70 180.11 139.29 1,281.39 147.35 119.59 23.12 22.23 0.73 16.47
Subex 323.15 164.62 38.68 11.58 163.97 19.67 10.26 0.40 96.64 -48.95 12.87
Take Solutions 1,449.01 1,191.12 215.55 97.07 983.42 198.64 114.96 21.12 8.51 11.62 -15.57
Tanla Solutions 973.05 881.72 62.76 -121.03 404.24 40.50 10.12 118.12 54.97 40.75 -1296.54
Tata Consultancy Services 825,918.64 77,149.00 20,262.00 16,211.00 71,115.00 19,349.00 15,289.00 8.48 4.72 3.60 6.03
Tata Elxsi 5,079.27 747.54 140.21 98.60 784.82 213.24 152.68 -4.75 -34.25 44.86 -35.42
Tech Mahindra 74,401.35 17,722.90 2,815.00 2,067.80 16,906.13 2,975.65 1,980.54 4.83 -5.40 10.81 4.41
Wipro 142,939.82 29,916.60 6,042.70 4,965.40 27,437.60 4,940.00 3,730.20 9.04 22.32 -10.86 33.11
Xchanging Solutions 615.51 21.72 6.00 16.63 25.15 2.88 7.70 -13.64 108.33 -58.55 115.97
Zen Technologies Ltd. 419.75 96.51 44.82 29.83 14.68 -5.75 -6.76 557.55 879.93 -184.31 541.16
Zensar Technologies Ltd. 3,873.71 2,143.30 295.84 158.42 1,873.37 239.20 178.94 14.41 23.68 -7.50 -11.47

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 Economic Review For The First Half Of 2019 - 2020

Hindalco Industries, and Hindustan Copper. The segment's

average sales growth declined by 10 per cent in H1FY20.
Hindustan Copper reported the biggest drop in non-ferrous
metal manufacturers during the year. Its sales decline by
33 per cent over the period under review. However, it
operationally improved its performance, as its EBITDA margin
expanded by more than 800 basis points to 35 per cent for the
first half of the current fiscal. Other non-ferrous metal
companies, on the other hand, reported a decline in margins
during the same period. This was due to higher input costs.
Hindustan Zinc top-line growth weakened due to low volumes
in lead and silver.

The steel segment reported the revenue growth of just 4 per cent
in the first quarter of the current fiscal. The slow growth was due
to a decline by major players, such as Steel Authority Of India
(SAIL), JSW Steel, and Tata Steel, which reported a decline in

Metal
the range of 12 to 15 per cent for the period under review.
Talking about steel manufacturers, Tata steel posted weak
earnings for H1FY20 due to weak operating performance in the
turbulent European market and losses in domestic subsidiaries.

T
Its revenue declined by 13 per cent on a YoY basis for H1FY20
he metal sector's weak performance during H1FY20 is as compared to H1FY19. The EBITDA margin contracted to 13
predominantly driven by several major issues, such as per cent during this period from nearly 19 per cent during the
low realizations and macroeconomic sluggishness. same period in the last fiscal. JSW Steel earnings were also down
Overall, the sector reported the sales growth of just 1.20 per the wing to domestic realizations.
cent for the first half of the current fiscal compared to the same
period last year. The decline in the sector was led by a drop in Outlook
sales growth of key players, such as Usha Martin, Welspun The future of the metal sector depends on the Capex revival. The
Specialty Solutions, and Hindustan Copper. These companies economic slowdown and banking crisis has led to very slow to
saw a revenue de-growth up to 45 per cent during the period negligible expansion in the domestic and the international
under review. market. The domestic metal industry will keenly watch for the
steps taken by the government for industrial revival. For the
The metal sector is categorised in various sub-segments on the remaining part of the fiscal, auto sales will also be a major factor
basis of iron content and metal type. Ferrous metals (including for metal manufacturers. Hence, we can expect another weak
steel) and non-ferrous metals are the two main segments of the fiscal year for the metal industry. However, any positive changes
metal sector. In terms of the non-ferrous segment, Hindustan in price realizations can improve the performance of these
Zinc is the leader by market cap and is followed by Vedanta, companies.
M Cap H1 FY20 H1 FY19 Change (%)
Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Steel & Iron Products
APL Apollo Tubes 4,249.44 3,718.88 196.97 111.96 3,367.00 194.88 73.67 10.45 1.07 9.28 51.98
Beekay Steel Industries 431.03 381.38 70.77 49.32 524.52 98.55 61.20 -27.29 -28.19 1.25 -19.41
Gallantt Ispat 626.84 537.64 39.28 21.10 573.70 111.27 71.21 -6.29 -64.70 165.50 -70.37
Godawari Power & Ispat 774.14 1,661.72 340.15 109.86 1,524.47 388.04 124.17 9.00 -12.34 24.35 -11.52
Jindal Saw 2,279.85 4,934.06 670.62 449.00 4,621.51 587.65 195.35 6.76 14.12 -6.45 129.84
Jindal Stainless (Hisar) 1,606.72 4,118.01 478.37 166.23 4,362.51 481.42 140.99 -5.60 -0.63 -5.00 17.90
Jindal Stainless 1,819.82 6,237.10 630.89 118.75 6,228.17 606.12 54.41 0.14 4.09 -3.79 118.25
JSW Steel 65,095.75 37,384.00 6,447.00 3,578.00 42,071.00 10,011.00 4,407.00 -11.14 -35.60 37.98 -18.81
Kalyani Steels 1,081.94 646.66 106.03 81.77 710.56 103.83 56.59 -8.99 2.13 -10.89 44.50
Maharashtra Seamless 2,507.80 1,478.41 319.79 287.72 1,310.47 271.66 188.84 12.82 17.72 -4.16 52.36
Mishra Dhatu Nigam 2,938.43 302.36 90.29 58.84 221.18 55.89 33.36 36.70 61.55 -15.38 76.40
Monnet Ispat & Energy 679.44 1,437.53 -24.66 -246.68 852.77 23.57 -3,249.30 68.57 -204.62 261.12 92.41
Mukand 396.64 1,469.38 60.96 -73.55 1,813.36 88.67 -41.70 -18.97 -31.25 17.86 -76.38

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Special Supplement
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M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Pennar Industries 393.35 1,117.78 96.15 40.13 980.41 73.56 27.05 14.01 30.71 -12.77 48.35
Prakash Industries 835.77 1,587.72 181.70 70.14 1,935.73 430.29 299.41 -17.98 -57.77 94.24 -76.57
Sarda Energy & Minerals 756.31 1,105.58 197.65 122.17 1,214.35 255.29 85.23 -8.96 -22.58 17.59 43.34
Shankara Building Products 699.76 1,272.40 57.90 18.27 1,429.11 79.95 28.59 -10.97 -27.59 22.95 -36.10
Steel Authority Of India 17,513.43 28,947.45 2,741.66 -274.00 32,625.23 4,941.48 1,094.12 -11.27 -44.52 59.92 -125.04
Sunflag Iron & Steel Co. 553.27 953.04 69.89 25.24 1,167.29 153.90 77.49 -18.35 -54.59 79.79 -67.43
Supershakti Metaliks 412.60 263.20 9.88 6.03 255.58 13.09 6.03 2.98 -24.51 36.42 0.07
Tata Steel BSL 3,242.05 8,887.37 1,253.16 -142.63 10,485.57 2,004.81 2,165.01 -15.24 -37.49 35.60 -106.59
Tata Steel 56,328.71 70,526.29 9,196.46 4,651.92 81,376.89 15,387.18 4,942.30 -13.33 -40.23 45.01 -5.88
Technocraft Ind.(India) 707.07 603.83 89.86 55.68 558.02 87.86 61.94 8.21 2.28 5.80 -10.10
Tinplate Company Of India 1,521.34 1,099.70 55.90 21.46 1,226.56 40.48 14.81 -10.34 38.10 -35.08 44.88
Usha Martin 824.33 1,097.90 112.31 -96.37 2,014.82 287.59 40.21 -45.51 -60.95 39.53 -339.67
Welspun Specialty Solutions 493.90 162.32 -18.78 -18.85 240.52 -17.38 4.63 -32.51 -8.06 37.54 -507.13
Steel/Sponge Iron/Pig Iron
Jindal Steel & Power 16,682.36 20,038.69 3,814.58 -486.71 19,784.05 4,483.93 389.06 1.29 -14.93 19.06 -225.10
Tata Metaliks 1,752.78 1,010.41 86.01 43.44 1,014.94 151.65 78.39 -0.45 -43.28 75.53 -44.58
Tata Steel Long Products 1,781.90 1,482.38 -17.67 -282.87 477.15 90.06 73.19 210.67 -119.62 1683.43 -486.49
Aluminium & Alum. Pro.
National Aluminium Co. 8,078.12 4,447.63 246.52 69.43 6,014.24 1,862.02 1,197.05 -26.05 -86.76 458.57 -94.20
Metal - Non Ferrous
Gravita India 318.61 592.03 35.62 16.31 597.67 36.92 18.36 -0.94 -3.51 2.66 -11.18
Hindalco Industries 48,289.87 20,019.65 1,509.44 100.58 21,426.23 2,416.02 722.15 -6.56 -37.52 49.55 -86.07
Hindustan Copper 3,594.47 591.72 208.37 40.79 891.02 241.77 70.60 -33.59 -13.81 -22.95 -42.22
Hindustan Zinc 89,534.51 9,498.00 4,594.00 3,846.00 10,087.00 5,047.00 3,733.00 -5.84 -8.98 3.45 3.03
Vedanta 55,999.53 43,332.00 9,621.00 4,675.00 44,911.00 11,492.00 4,148.00 -3.52 -16.28 15.25 12.70

I
ndia is the third largest energy and oil consumer in the world
after China and US, as well as the fourth largest importer of
Liquefied Natural Gas (LNG). India's current refining
capacity stands at 249 Million Metric Tonne Per Annum
(MMTPA), comprising of 23 refineries, out of which, 18 is under
public sector, 3 under private sector and 2 in a joint venture. At
present, about 16,788 km natural gas pipeline is operational and
around 12,672 km gas pipelines are under-development.

Fall in the output was expected, considering the 2019 trend seen
in the economy. The domestic crude oil production dipped 5.9
per cent to 19.1 MMT in April-October and natural gas output
dropped 4.3 per cent to 18,180 MMSCM, in the same period.
The development comes at a time when the total consumption
of petroleum products in India inched up only 1.4 per cent YoY
to 105.7 MMT in the April-September period. Consumption of
natural gas increased 2.8 per cent to 31,815 MMSCM. Due to
the muted consumption and fall in global oil prices, the value of
crude oil and petroleum products in April-September, fell 8.7 per

Petroleum
cent to USD 61.1 billion. In the month of April, the crude oil prices
were hovering high at USD 66.30 per barrel. Over the next 3
months, the price dipped to USD 51.16 per barrel. Again in
mid-September, the price surged to USD 61.2 per barrel and
slipped to USD 53.1 per barrel in October. Since then till date, it

68 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in

 Economic Review For The First Half Of 2019 - 2020

has been rising and has gone above USD 60 per barrel level.
In our analysis, we have taken up 20 companies from this sector
ranked as per their market capitalisation. On an overall basis,
the companies delivered mixed performance in H1FY20, as
compared to H1FY19. Of these, the revenue of Indraprastha
Gas, Confidence Petroleum, Mahanagar Gas and Gujarat State
Petronet grew in double digits. Revenue of these companies has
grown by 20.9 per cent, 27.8 per cent, 17.6 per cent and 16.03
per cent, respectively on YoY basis. Meanwhile, the revenue of
Mangalore Refinery and Asian Oilfield de-grew by 22.8 per
cent and 26.1 per cent, respectively, on YoY basis. EBITDA of
Tamil Nadu Petroproducts, Mahanagar Gas, Indraprastha Gas
and Linde India grew by 31.6 per cent, 27.3 per cent, 24.5 per
cent and 31.5 per cent, respectively. However, companies like
Chennai Petroleum and Mangalore Refinery generated losses at
an operating level in H1FY20 as against the operating profit in
H1FY19. PAT of Linde India grew exceptionally by 631 per
cent YoY, and that of Indraprastha Gas and Mahanagar Gas
jumped by 65 per cent and 66.6 per cent YoY, respectively.
Chennai Petroleum and Mangalore Refinery incurred net loss
in H1FY20, as compared to the net profit earned in H1FY19.
The foreign investment in India’s oil and gas industry has been
on rise, especially in 2019. Some of the prominent investment
deals include French oil major-Total S.A signing a definitive
agreement to acquire 37.4 per cent stake in Adani Gas Limited
for about `5,700 crore. Another deal was ExxonMobil signing a
Memorandum of Understanding (MoU) with Indian Oil
Corporation to expand Liquefied Natural Gas (LNG) business
in India. This tie-up will focus on exploring new models of
delivering cost-effective natural gas in India, where it is
required to complement traditional pipelines. One of the
biggest investments seen in recent times was Saudi Aramco’s 20
per cent stake purchase in Reliance Industries’ oil-to-chemicals
(O2C) business at US$ 15 billion.
According to India’s Oil Minister, India will see a massive
investment of USD 118 billion in oil and gas exploration as well
as in setting up of natural gas infrastructure in the next few
years, as the country prepares to meet the needs of a fast
growing economy. As much as USD 58 billion will be invested
by 2023 in oil & gas exploration and production, while, another
USD 60 billion will be put in creation of natural gas
infrastructure such as pipelines, import terminals and city gas
distribution networks by 2024. Considering the investment
line-up, three rounds of bidding for exploration acreage under
the Open Acreage Licensing Policy (OLAP) and two rounds of
bidding under the Discovered Small Fields (DSF) policy, had
helped garner an estimated investment of USD 58 billion in
exploration and production of crude oil and natural gas by
2023. Also, emphasis is being given on the use of biofuels
generated from various types of agriculture residue, municipal
solid waste and use of compressed biogas produced from
biomass waste. It has a target to setup 5,000 compressed biogas
plants in different parts of the country.

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Oil Exploration
Asian Oilfield Services 393.50 74.76 12.64 0.01 101.20 13.08 2.17 -26.12 -3.40 -23.52 -99.45
Deep Industries 326.24 121.42 51.78 46.64 128.64 69.93 31.12 -5.61 -25.95 27.47 49.85
Hindustan Oil Exp. Co. 1,098.94 106.21 72.79 69.50 99.44 77.90 66.19 6.82 -6.57 14.32 5.00
Oil & Natural Gas Corp. 161,090.48 51,047.36 24,474.39 12,167.38 55,202.00 28,063.62 14,408.49 -7.53 -12.79 6.04 -15.55
Oil India 16,157.64 6,586.97 2,596.02 1,252.03 7,134.04 2,883.02 1,565.23 -7.67 -9.95 2.54 -20.01
Petrochemicals
Rain Industries 3,358.41 6,538.10 771.70 239.99 7,109.45 1,333.26 569.48 -8.04 -42.12 58.88 -57.86
Tamilnadu Petroproducts 305.00 683.10 60.51 39.93 608.98 45.98 28.75 12.17 31.60 -14.76 38.89
Refineries
Bharat Petroleum Corp. 103,484.20 160,916.22 4,554.76 2,783.57 165,315.75 6,294.67 3,511.97 -2.66 -27.64 34.52 -20.74
Chennai Petroleum Corp. 1,651.43 24,915.83 -234.85 -446.38 27,439.78 690.93 183.06 -9.20 -133.99 367.14 -343.84
Hindustan Petroleum Corp. 39,444.15 141,263.28 3,962.86 1,863.26 146,596.01 5,312.60 2,811.19 -3.64 -25.41 29.18 -33.72
Indian Oil Corp. 117,865.27 287,264.58 12,332.64 3,381.74 306,782.72 20,298.93 9,842.32 -6.36 -39.24 54.12 -65.64
Mangalore Ref. & Petro. 7,133.08 26,461.88 -938.38 -1,074.57 34,315.59 957.41 280.80 -22.89 -198.01 178.68 -482.68
Reliance Industries 960,991.56 325,105.00 43,467.00 21,414.00 297,990.00 41,769.00 19,023.00 9.10 4.07 4.84 12.57
Industrial Gases & Fuels
Confidence Petroleum India 724.29 556.85 66.36 29.12 435.43 57.31 28.81 27.88 15.79 10.45 1.07
GAIL (India) 53,264.78 36,352.52 3,821.65 2,351.78 36,573.91 5,171.17 3,222.21 -0.61 -26.10 34.49 -27.01
Indraprastha Gas 29,946.03 3,616.90 751.10 599.34 2,991.08 603.06 363.17 20.92 24.55 -2.91 65.03
Linde India 5,658.18 939.30 207.30 55.74 1,077.24 157.57 7.63 -12.80 31.56 -33.72 630.96
Petronet LNG 40,477.50 17,974.62 2,184.39 1,663.41 19,914.49 1,818.13 1,149.92 -9.74 20.14 -24.87 44.65
Gas Transmission/Marketing
Gujarat State Petronet 12,116.08 1,148.18 839.15 661.00 989.57 860.12 467.80 16.03 -2.44 18.93 41.30
Mahanagar Gas 10,315.36 1,692.74 550.24 440.86 1,439.21 432.41 264.62 17.62 27.25 -7.57 66.60

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Pharma
I
ndia is considered as the third largest pharmaceutical
industry in the world by volume. It is the source of 60,000
generic brands, across 60 therapeutic categories and
manufactures more than 500 different Active
Pharmaceutical Ingredients (APIs). This is accomplished with
the country being home to nearly 3,000 pharma companies
with a network of around 10,500 manufacturing facilities.
In India, the domestic pharmaceutical market's turnover has
reached US$ 18.12 billion in 2018, increasing by 9.4 per cent
from 2017, growing as a result of increased penetration of
health insurance and pharmacies. During H1FY20, the pharma
sector in India continued to be baffled by various regulatory
approvals, USFDA warnings and pricing issues globally.
Despite this, an improvement in exports to the US, which is a
key market for Indian drug manufacturers, drove the growth in
the overall exports from India. Exports of drugs and
pharmaceuticals to the US grew sharply by 23.8 per cent to US$
3.42 billion during the first six months of the fiscal year
2019-20. During the period from April-September, 2019, it was
the second highest growth in double digits in the past five years.
Nevertheless, the growth was around 2 per cent lower than the
growth registered in comparison to H1FY19 and H1FY18.
On a year-on-year basis, during April-September 2019, the
months of May, June and July witnessed 10 per cent growth in
drug and pharmaceutical exports. The month of August was
the only exception to the case with a decrease of 0.2 per cent,
whereas, the remaining two months registered a single-digit
growth. From 2018-19, India’s pharmaceutical exports were
worth US$ 19.13 billion, registering a growth of 10.72 per cent
over $17.28 billion in pharma exports of last year.
As per the Centre for Monitoring Indian Economy (CMIE), a
70 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020
growth in exports was on account of easing pricing pressure and
new drug launches. Whereas, companies continued to face
pricing pressure in the US generics market due to an increased
competition and higher Abbreviated New Drug Approvals
(ANDAs). The pressure though remained in low single digits as
channel and distribution partners in the US considered
consolidating. Such changes come at a time when the country’s
overall export in dollar terms has declined by nearly 2.6 per cent
during the first half of FY20. It grew by around 12.3 per cent in
H1FY19 when compared with H1FY18. Pharma companies are
directly affected with currency fluctuations. In the first quarter of
FY20, the Indian rupee depreciated by 3.76 per cent to `69.6 and
then, in the second quarter of FY20 to `70.34.
The Government of India unveiled 'Pharma Vision 2020', which
is aimed at making India a global leader in the end-to-end drug
manufacture. Also, the government has taken various steps to
reduce costs and bring down healthcare expenses. Fast
introduction of generic drugs into the market has remained in
focus and is expected to benefit the Indian pharmaceutical
companies in the future. Additionally, the thrust on the rural
health programmes, lifesaving drugs and preventive vaccines
also predicts well for the growth of the pharmaceutical
companies. To boost investments in the sector, 100 per cent
Foreign Direct Investment (FDI) is allowed under the automatic
route for greenfield pharma. And also, 100 per cent FDI is
allowed in brownfield pharma wherein, 74 per cent is allowed
under the automatic route and thereafter, through the
government approval route.
Looking ahead, a better growth in the domestic sales will
depend on the ability of pharma companies to align their
product portfolio towards chronic therapies for diseases such as
cardiovascular, anti-diabetes, anti-depressants and anti-cancers
that are currently increasing amongst the global and domestic
population.
Sun Pharma reported a 16.49 per cent increase in the net sales
to `16,497.71 crore for H1FY20, as compared to `14,161.80
crore for H1FY19. The net profit grew significantly as well, to be
`2,668.73 crore in H1FY20. As for Dr Reddy’s Laboratories,
cost control measures and divestment on non-core investments
enabled the pharma company to gain a net profit of `1,755.30
crore in H1FY20, clocking a growth of around 80 per cent YoY.
Its net sales also increased by 14.79 per cent from `7,554 crore
in H1FY19 to `8,671 crore in H1FY20. Post restoring issues
with distributors, Cipla reported a comparatively low growth of
5.46 per cent YoY in the net sales of `8,384.80 crore for
H1FY20. Cipla’s net profit for H1FY20 grew by 17.01 per cent
YoY to `951.09 crore due to a lack of major launches. On
account of missing the expected sales in its US market, Lupin
witnessed degrowth by 62.3 per cent YoY in its net profit of
`177.33 crore gained in H1FY20. Owing to domestic and
EMEA sales growth, the company’s net sales grew by 12.44 per
cent to `8,778.03 crore in H1FY20 from 7,806.99 crore in
H1FY19.
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 Economic Review For The First Half Of 2019 - 2020

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Hospital & Healthcare Services
Apollo Hospitals Enterprise 19,177.01 4,692.78 690.22 169.92 4,000.51 484.46 139.14 17.30 42.47 -17.66 22.12
Aster DM Healthcare 7,793.13 4,115.47 468.54 17.55 3,611.58 249.38 30.40 13.95 87.88 -39.35 -42.27
Dr. Lal Pathlabs 12,412.07 700.80 204.00 140.10 609.80 161.80 107.10 14.92 26.08 -8.85 30.81
Fortis Healthcare 9,871.08 2,350.48 326.78 196.07 2,181.94 72.21 -208.87 7.72 352.54 -76.20 193.87
Indraprastha Medical Corp. 366.69 419.84 45.22 26.45 389.55 40.94 14.16 7.77 10.45 -2.42 86.83
Kaya 439.08 202.07 26.85 -18.84 211.58 8.94 -1.44 -4.49 200.23 -68.19 -1213.10
Kovai Medical Center & Hospital 778.92 342.08 76.90 36.21 304.32 62.78 27.54 12.41 22.50 -8.24 31.48
Narayana Hrudayalaya 6,208.48 1,599.67 224.47 77.63 1,363.62 120.40 13.17 17.31 86.43 -37.08 489.39
Shalby 1,019.07 257.61 57.29 36.56 235.36 47.57 15.82 9.45 20.43 -9.12 131.06
Thyrocare Technologies 2,862.15 225.97 97.77 62.07 201.03 84.23 48.25 12.41 16.08 -3.16 28.64
Medical Equipment/Supplies/Accessories
Poly Medicure 1,853.19 315.58 77.30 47.21 278.12 65.79 28.08 13.47 17.48 -3.41 68.11
Pharmaceuticals & Drugs
Aarti Drugs 1,234.32 882.93 123.01 54.76 721.70 99.60 41.42 22.34 23.50 -0.94 32.21
Abbott India 27,901.82 2,053.69 378.31 295.27 1,824.64 305.36 220.08 12.55 23.89 -9.15 34.16
Advanced Enzyme Tech. 1,825.91 221.78 100.76 65.81 207.43 90.48 57.10 6.91 11.35 -3.98 15.26
Ajanta Pharma 8,335.20 1,254.70 346.02 230.99 1,055.10 323.71 231.18 18.92 6.89 11.25 -0.08
Alembic 1,425.14 49.63 4.53 37.14 78.08 14.60 36.26 -36.44 -68.97 104.86 2.43
Alembic Pharmaceuticals 10,285.43 2,189.78 570.44 369.45 1,989.59 453.33 290.35 10.06 25.83 -12.53 27.24
Alkem Laboratories 24,375.72 4,113.53 717.09 567.81 3,588.38 578.40 397.69 14.63 23.98 -7.54 42.78
Amrutanjan Health Care 1,244.35 119.40 10.02 7.70 97.82 6.13 5.26 22.07 63.49 -25.34 46.48
Anuh Pharma 322.60 159.05 12.30 8.88 167.62 15.37 12.65 -5.11 -20.00 18.61 -29.80
Astrazeneca Pharma India 6,646.25 413.04 69.12 35.93 322.80 24.04 15.53 27.96 187.49 -55.49 131.43
Aurobindo Pharma 26,935.60 11,045.07 2,286.62 1,270.43 9,001.67 1,697.33 1,066.38 22.70 34.72 -8.92 19.13
Bajaj Healthcare 303.24 192.24 17.98 6.52 189.07 19.12 6.25 1.68 -6.00 8.17 4.27
Biocon 34,746.00 3,038.10 840.30 498.80 2,444.80 577.40 516.40 24.27 45.53 -14.61 -3.41
Bliss GVS Pharma 1,534.82 421.66 74.43 64.23 433.76 82.16 80.65 -2.79 -9.42 7.31 -20.35
Cadila Healthcare 26,299.95 6,862.90 1,257.60 397.70 5,854.90 1,332.80 859.50 17.22 -5.64 24.23 -53.73
Caplin Point Laboratories 2,284.79 419.76 138.50 107.34 302.32 108.82 80.89 38.84 27.28 9.09 32.70
Cipla 38,227.28 8,384.80 1,814.14 951.09 7,950.89 1,428.59 812.81 5.46 26.99 -16.95 17.01
Dishman Carbogen Amcis 1,279.86 989.21 265.20 75.47 929.95 249.35 83.65 6.37 6.36 0.01 -9.78
Divis Laboratories 48,290.06 2,543.84 863.97 620.18 2,280.31 865.99 663.81 11.56 -0.23 11.82 -6.57
Dr. Reddys Laboratories 47,616.02 8,671.00 1,805.50 1,755.30 7,554.00 1,528.10 975.20 14.79 18.15 -2.85 79.99
Eris Lifesciences 6,301.84 559.09 214.36 176.77 514.95 189.24 157.07 8.57 13.27 -4.15 12.54
FDC 3,550.26 682.13 147.43 114.96 553.75 121.82 94.16 23.18 21.02 1.79 22.09
Glaxosmithkline Pharm. 27,486.13 1,670.12 359.72 616.25 1,551.96 305.53 189.36 7.61 17.74 -8.60 225.44
Glenmark Pharmaceuticals 9,796.88 5,137.92 792.32 364.82 4,746.95 786.99 646.99 8.24 0.68 7.51 -43.61
Granules India 3,125.97 1,294.81 262.22 153.54 1,034.10 173.13 84.40 25.21 51.46 -17.33 81.93
Gufic Biosciences 476.32 178.42 22.33 11.11 170.91 21.46 10.12 4.39 4.09 0.29 9.84
Hester Biosciences 1,241.28 83.80 28.64 18.49 80.80 30.51 19.62 3.70 -6.12 10.47 -5.74
Hikal 1,361.24 724.21 126.87 31.60 720.44 135.84 40.36 0.52 -6.60 7.63 -21.70
Indoco Remedies 1,678.06 544.64 54.89 9.51 453.16 23.38 -19.81 20.19 134.77 -48.81 148.01
IOL Chemicals & Pharma. 947.75 941.76 277.53 173.02 784.75 114.97 52.81 20.01 141.39 -50.29 227.63
Ipca Laboratories 14,560.19 2,223.57 456.60 328.07 1,851.75 286.80 185.26 20.08 59.21 -24.58 77.09
JB Chemicals & Pharma. 3,446.56 838.92 193.02 155.10 770.25 156.22 93.51 8.92 23.55 -11.85 65.87
Kappac Pharma 341.47 0.00 -0.01 -0.01 0.00 0.00 0.00 -166.67 -166.67
Laurus Labs 3,887.41 1,262.99 221.07 71.65 1,127.30 156.28 32.77 12.04 41.46 -20.80 118.65
Lincoln Pharmaceuticals 375.30 209.50 43.73 31.61 202.43 42.38 31.08 3.49 3.18 0.30 1.69
Lupin 34,305.42 8,778.03 1,591.25 177.33 7,806.99 1,076.61 470.43 12.44 47.80 -23.93 -62.30
Marksans Pharma 660.63 501.43 65.99 48.45 504.29 72.61 45.45 -0.57 -9.12 9.41 6.60

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M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Medicamen Biotech 441.51 66.64 10.72 7.12 65.25 8.35 6.78 2.13 28.30 -20.40 4.92
Morepen Laboratories 699.48 416.41 34.39 11.75 337.67 28.94 9.44 23.32 18.83 3.78 24.50
Natco Pharma 10,443.06 978.00 325.60 260.50 1,082.10 438.10 362.70 -9.62 -25.68 21.61 -28.18
Neuland Laboratories 545.27 367.23 43.40 14.19 322.70 23.63 4.81 13.80 83.70 -38.05 194.72
Panacea Biotec 795.95 45.80 -44.31 -78.31 213.69 -28.62 -134.32 -78.57 -54.82 86.16 41.70
Pfizer 19,045.70 1,111.46 330.41 267.06 1,032.05 259.88 187.64 7.69 27.14 -15.29 42.33
Piramal Enterprises 32,667.97 7,109.81 4,359.69 835.12 6,046.59 3,179.71 276.99 17.58 37.11 -14.24 201.50
Procter & Gamble Health 6,903.18 464.66 104.66 84.79 521.46 92.49 55.53 -10.89 13.16 -21.25 52.68
RPG Life Sciences 517.59 192.53 31.76 18.12 170.39 14.84 3.99 12.99 114.02 -47.20 354.14
Sanofi India 16,074.34 1,465.20 311.60 190.30 1,301.30 298.90 182.10 12.60 4.25 8.01 4.50
Sequent Scientific 1,759.71 562.24 75.60 39.76 486.88 50.25 19.98 15.48 50.45 -23.24 99.02
Shilpa Medicare 2,231.39 450.91 96.80 65.77 360.44 92.26 83.34 25.10 4.93 19.22 -21.08
SMS Pharmaceuticals 340.30 235.03 45.62 19.03 259.95 49.03 22.67 -9.58 -6.95 -2.83 -16.06
Solara Active Pharma Science 1,174.16 681.30 131.70 55.38 645.14 94.20 18.80 5.60 39.81 -24.46 194.57
Strides Pharma Science 3,256.14 1,400.89 267.51 197.47 1,396.09 180.38 9.12 0.34 48.30 -32.34 2065.24
Sun Pharmaceutical Industries 101,323.92 16,497.71 3,717.97 2,668.73 14,161.80 3,137.91 1,003.08 16.49 18.49 -1.68 166.05
Suven Life Sciences 3,850.29 473.30 200.57 129.50 281.18 82.65 56.85 68.32 142.68 -30.64 127.78
Torrent Pharmaceuticals 31,218.16 4,027.00 1,082.00 460.00 3,766.00 950.00 342.00 6.93 13.89 -6.11 34.50
TTK Healthcare 682.50 343.45 16.87 7.42 339.23 29.30 14.54 1.24 -42.42 75.82 -48.95
Unichem Laboratories 1,123.68 457.62 -53.93 -24.40 447.35 -36.84 -2.97 2.30 -46.41 30.13 -721.00
Valiant Organics 1,594.22 305.29 101.72 79.58 272.35 71.52 50.17 12.09 42.22 -21.18 58.61
Wockhardt 2,772.80 1,665.29 83.12 -131.12 2,133.39 56.54 -125.90 -21.94 47.01 -46.90 -4.15
Zota Health Care 464.80 46.97 2.27 1.65 43.27 5.84 4.12 8.56 -61.12 179.19 -59.94

products are majorly divided into Pipes & fittings, Films &
sheets, Wires & cables and Profiles.

The major contributor of plastic products is Pipes, which

accounts for 70 per cent of the total plastic products. The said
division is further likely to grow led by rising government
thrust on Infrastructure, Housing and Irrigation sector.
Another contributor of Plastic products is Furniture, which is
currently struggling due to slower demand. The plastic
processing sector comprises of over 50,000 units involved in the
manufacture of variety of items, gaining prominence in
different spheres of activity due to the increasing per capita
consumption. However, in spite of having a good growth

Plastic Products
potential, the industry faces many challenges in terms of
environmental hazards, lack of advanced technology, limited
infrastructure, etc.

T
he plastic industry has been one of the fastest growing
industries in the Indian economy. On the export front,
India is a major exporter of plastics globally. The entire
plastic industry can be divided into (A) Upstream sector:
Manufacturing of polymers and (B) Downstream sector:
Making plastic articles from polymers. The major end users of
plastic industry are Construction, Electrical and Electronics,
Packaging, Automotive, FMCG and Textile sector. Plastic
industry is rising in recent years as a result of rapid
urbanisation and expanding middle class group. Plastic
On the packaging front, plastic is widely used in the industries
like Pharma, Retail, Food and Beverages etc. Going ahead, the
growth in the packaging industry is directly related to the
growth in major industries like FMCG and pharma. The Indian
packaging industry, which constitutes about 3 per cent of the
global packaging industry, has been growing at an annual rate
of 13 per cent and is expected to touch US$ 32 billion by 2020.
In the current scenario, the flexible packaging is quite popular
and FMCG is the biggest consumer of flexible packaging with a
huge share of around 70 per cent. Flexible packaging is less
costly and occupies lesser space which makes it popular. Other

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 Economic Review For The First Half Of 2019 - 2020

packaging options like paper packaging are contributing
around 30 per cent to the overall packaging market.
The Indian plastics industry has a massive unrealised growth
potential indicated by very low usage of plastic, as compared to
the global standards. At the same time, in the coming decades,
the industry has to encourage reasonable development by
investing in technologies that protects the environment and
inspires growth, while balancing economic needs and financial
constraints. Also, the growing interest in green products,
healthier lifestyles and rising concerns on environment is
leading to a shift towards bio-plastics, which would be a
game-changer for the industry.
For the purpose of sector analysis, we have analysed 21
companies in the plastic sector according to their market cap.
During H1FY20, the aggregate sales of these companies
declined by 2 per cent YoY, and the aggregate operating profit
declined by 3 per cent YoY. However, aggregate PAT grew by 11
per cent YoY. Major PVC pipes maker, Astral Poly Technik
reported 16 per cent YoY growth in terms of its revenue and 34
per cent YoY growth as operating profit in H1FY20. PAT also
grew by 54 per cent YoY. The plastic major, Supreme Industries’
revenue increased by 2 per cent whereas, its operating profit
and PAT declined by 15 per cent and 14 per cent YoY,
respectively, in H1FY20.
Finolex Industries posted a jump in revenue by 11 per cent
YoY. However, operating profit and PAT declined by 36 per
cent and 3 per cent, respectively on YoY basis. Essel Propack
also posted healthy numbers with a jump in revenue and
operating profit by 3 per cent and 11 per cent, respectively on
YoY basis. PAT also jumped by 11 per cent YoY in H1FY20.
Kama Holdings delivered healthy numbers with a jump in
revenue, operating profit and PAT by 12 per cent, 13 per cent
and 4 per cent, respectively on YoY basis in H1FY20.
In the recent budget announcement, custom duty on certain
plastic products has been increased from 10 per cent to 15 per
cent. Also, Basic Customs duty on PVC increased from 7.5 per
cent to 10 per cent. This would help the domestic plastic
industry to grow further. Government initiatives to boost rural
infrastructure is pushing the demand for PVC extrusions in the
construction sector. Pipes market has grown by 12 per cent
CAGR since the last five years.
Going ahead, the linkage of plastic waste business with
recycling business could create various opportunities for the
recycling companies. Moreover, the current low level of per
capita consumption, increased growth in the end-user
industries, a higher penetration of plastics in various existing
applications and the ever-growing range of new applications,
could further propel the growth of plastics in India.

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Plastic Products
Apollo Pipes 463.16 213.81 24.90 15.64 185.37 20.06 13.30 15.34 24.12 -7.07 17.60
Astral Poly Technik 17,333.69 1,284.90 211.10 130.50 1,106.25 158.12 84.94 16.15 33.51 -13.00 53.64
Cosmo Films 444.11 1,096.93 117.21 56.48 1,048.97 82.35 20.22 4.57 42.33 -26.53 179.33
Essel Propack 5,329.54 1,360.37 261.08 101.30 1,318.83 236.27 90.87 3.15 10.50 -6.65 11.48
Finolex Industries 6,731.55 1,520.48 205.55 175.16 1,370.49 318.80 179.72 10.94 -35.52 72.07 -2.54
Garware Polyester 501.82 487.60 89.96 50.37 474.70 79.40 43.91 2.72 13.30 -9.34 14.71
Huhtamaki PPL 1,844.25 1,263.16 158.21 69.96 1,148.49 105.88 32.05 9.98 49.42 -26.39 118.28
Jai Corp 1,608.72 292.92 35.87 19.52 328.54 50.24 22.15 -10.84 -28.60 24.88 -11.87
Jain Irrigation Systems 416.95 3,279.60 209.03 -111.87 3,987.07 485.45 103.90 -17.74 -56.94 91.03 -207.67
Jindal Poly Films 1,010.37 1,653.04 238.60 222.33 1,863.56 233.89 43.39 -11.30 2.01 -13.05 412.40
Kama Holdings 3,287.83 21.03 20.76 20.23 18.76 18.40 19.39 12.12 12.84 -0.63 4.32
Kingfa Science & Tech. (India) 713.25 373.65 28.26 16.36 356.74 4.61 1.26 4.74 513.10 -82.92 1202.23
Mold-Tek Packaging 797.12 230.99 39.45 19.85 202.77 34.42 15.46 13.91 14.63 -0.62 28.39
Nilkamal 1,844.35 1,067.21 142.38 73.16 1,185.46 103.89 55.60 -9.98 37.06 -34.31 31.59
Polyplex Corporation 1,578.76 2,205.52 420.50 348.44 2,238.53 369.44 274.70 -1.47 13.82 -13.44 26.84
Responsive Industries 2,500.97 246.97 58.83 26.72 436.02 84.17 34.69 -43.36 -30.11 -18.95 -22.98
Shaily Engineering Plastics 496.98 168.17 27.74 10.36 175.43 28.33 11.49 -4.14 -2.06 -2.12 -9.78
Supreme Industries 14,291.79 2,707.73 340.17 203.23 2,661.88 398.15 235.11 1.72 -14.56 19.06 -13.56
Time Technoplast 1,138.65 1,738.69 247.29 84.62 1,608.96 228.02 76.95 8.06 8.45 -0.36 9.97
Uflex 1,393.32 3,850.42 549.21 187.13 3,920.65 507.30 188.19 -1.79 8.26 -9.29 -0.56
Wim Plast Ltd. 426.06 165.52 34.49 23.98 167.95 34.32 17.93 -1.45 0.50 -1.93 33.76

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(UMPPs) i.e. 4,000 MW Super Thermal Power Projects for

developing large capacity power projects providing growth
opportunities for various power companies.

The power sector is under a huge stress in spite of several

initiatives undertaken by the government. The issue pertains to
Distribution Companies (discoms) which are bearing losses or
reporting mere profits. As theft in electricity continues, the
discoms are unable to gain revenue to pay back to power
generating companies thus, increasing the stress. Along with
distribution reforms, a huge amount of technological
interventions are needed by the private sector, so as to bring in
people who have an expertise in running distribution
companies. A proper regulatory framework for fixing tariffs and
subsidy will boost the sector’s growth.

Investments in power sector are expected to grow over the next

Power
few years but with a shift away from conventional power
generation towards renewable power generation, transmission
and distribution. Government of India had been focussing on

P
ower sector in India is a diversified sector as it is a
crucial component of infrastructure and economic
growth. With the continuous economic and industrial
growth, there has been a continuous increase in electricity
demand. It is expected that the per capita electricity
consumption will increase at 5 per cent CAGR between FY19
and FY23 from 1,149 units in FY18 to approximately 1,450-
1,470 units by FY23.
The total installed capacity as of November 2019 in India
stood at 3,65,981 megawatts with maximum contribution by
the private sector (46.6 per cent) followed by state sector (28.5
per cent) and central sector (25.2 per cent). Thermal power
generation has increased by 4-5 per cent during H1FY20.
According to Ministry of Power, Government of India, the
electricity generation target of conventional sources for the
year 2019-20 has been fixed as 1,330 Billion Unit (BU) which
is a growth of around 6.46 per cent over actual conventional
generation of 1,249.337 BU for the previous year 2018-19.
Energy generation from conventional sources for 2019-20
considering till November 2019, has been about 6,51,509 BU.
The government had launched the Ultra Mega Power Projects
attaining ‘Power for all’, which has accelerated capacity addition
in the country. It is assumed that if the demand from the power
sector remains low and the industrial demand also remains low
then, there is a possibility of pressure on coal import volumes as
well. For the next fiscal year, the project orders flow looks
positive for power sector companies.
As we have considered 24 companies belonging to the power
sector for our analysis, the average growth in the net profit for
H1FY20, compared to net profit for H1FY20, is calculated to be
24.77 per cent. The sector reported a 23.98 per cent average
growth in net sales YoY. Among the power sector companies,
NTPC which has the largest market cap, reported a low growth
in sales by 4.43 per cent to `46,957.16 crore in H1FY20 from
`44,964.68 crore in H1FY19. Hence, the net profit decreased by
0.33 per cent YoY to `4,997.48 crore. With a growing emphasis
on renewable energy, the net sales of Adani Green Energy for
H1FY20 doubled to `1,348.96 crore from `920.81 crore.
Subsequently, the company reported a net profit of `3.49 crore
for H1FY20. Net sales of Tata Power for H1FY20 came in at
`15,444.54 crore growing by 4.04 per cent YoY. But the net
profit declined drastically with the company facing debt issues
and deleveraging its assets to repay debts.

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Power Generation/Distribution
Adani Green Energy 24,429.90 1,348.96 875.31 3.49 920.81 430.49 -262.22 46.50 103.33 -27.95 101.33
Adani Power 23,160.92 13,720.47 4,033.04 -259.51 11,011.22 3,489.13 -438.26 24.60 15.59 7.80 40.79
Adani Transmission 36,464.20 5,451.48 2,110.33 414.80 2,011.43 1,103.10 264.54 171.03 91.31 41.67 56.80
BF Utilities 1,213.09 12.99 2.31 2.39 12.27 1.67 9.38 5.82 38.80 -23.76 -74.52
CESC 9,697.21 4,605.00 1,005.00 492.00 4,379.00 993.00 453.00 5.16 1.21 3.91 8.61
Gujarat Industries Power Co. 1,032.29 686.06 268.83 137.09 690.65 272.63 -60.53 -0.66 -1.39 0.74 326.48
GVK Power & Infrastructure 634.84 16.90 2.65 35.52 6.27 3.31 28.41 169.54 -19.94 236.67 25.03
India Power Corporation 832.59 231.82 28.55 8.90 280.86 51.21 8.47 -17.46 -44.26 48.07 5.09

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 Economic Review For The First Half Of 2019 - 2020

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Indian Energy Exchange 4,244.72 128.00 102.65 88.41 133.83 109.17 84.56 -4.35 -5.97 1.71 4.55
Jaiprakash Power Ventures 863.42 1,787.42 533.23 -278.28 2,037.06 793.47 -84.60 -12.25 -32.80 30.57 -228.94
JSW Energy 11,455.46 4,530.72 1,744.05 559.55 4,791.32 1,637.57 501.38 -5.44 6.50 -11.21 11.60
Nava Bharat Ventures 1,182.41 1,480.93 574.98 221.57 1,509.11 619.01 255.86 -1.87 -7.11 5.65 -13.40
NHPC 24,208.53 5,026.72 3,184.30 2,021.74 4,624.01 2,887.06 1,755.43 8.71 10.30 -1.44 15.17
NLC India 7,369.97 3,513.55 1,057.07 841.61 3,369.79 753.17 285.01 4.27 40.35 -25.71 195.29
NTPC 115,321.07 46,957.16 12,798.57 4,997.48 44,964.68 11,547.19 5,014.16 4.43 10.84 -5.78 -0.33
Power Grid Corp. Of India 96,679.78 17,489.09 15,453.33 4,609.46 16,410.13 13,899.56 3,935.72 6.57 11.18 -4.14 17.12
PTC India 1,591.04 9,723.16 243.18 197.67 7,922.03 226.31 157.13 22.74 7.45 14.22 25.80
RattanIndia Power 581.73 1,107.76 390.66 -156.05 1,307.51 446.39 -2,410.05 -15.28 -12.48 -3.19 93.53
Ravindra Energy 370.85 85.29 -1.62 2.31 33.54 1.67 7.47 154.33 -197.36 361.22 -69.00
Reliance Infrastructure 702.18 11,289.20 1,524.36 633.86 13,367.45 2,559.48 -3,063.47 -15.55 -40.44 41.80 120.69
Reliance Power 950.94 4,095.14 1,820.79 79.22 4,567.88 2,205.59 489.23 -10.35 -17.45 8.60 -83.81
SJVN 9,785.19 1,671.17 1,397.42 1,040.44 1,366.12 1,315.46 723.50 22.33 6.23 15.15 43.81
Tata Power Company 14,903.30 15,444.54 4,009.11 172.45 14,845.14 2,799.85 1,484.11 4.04 43.19 -27.34 -88.38
Torrent Power 13,500.53 7,578.13 1,888.65 1,032.19 6,972.67 1,753.27 640.84 8.68% 7.72% 0.89% 61.07%

based mainly on human resources in a country.

India supports a rapidly growing population, which are looking

to migrate from the agriculture to the other sectors. Thus, there
is a plethora of cheap manpower available to the Indian Services
sector, which gives it a distant advantage over other countries.
Many foreign companies prefer to set up their companies in
India owing to the lower labour cost. As a result, this sector
attracts the highest FDI among all sectors in the country. The
sector as a whole, as brought in `435,763.68 crore of equity FDI
into the country from April 2000 to June 2019, contributing
17.63 per cent of FDI equity inflows during this time.

Within a short span of 72 years

since independence, the service
sector has grown massively and
Services now accounts for a lion’s share of 60
per cent of the county's GDP.

T
he service sector has been of the most dominant sectors
in India in recent years, contributing significantly to the
exports and attracting substantial Foreign Direct
Investment (FDI). The sector comprises of various sub-sectors
like trade, hotels and restaurants, transport, storage,
communication, financing, insurance, real estate, business
services, social and personal services. These sub-sectors employ
a total of 25 per cent of the Indian population. On the whole,
the service sector also requires less capital investment than the
other sectors, since it is more of a knowledge-intensive sector,
To study the financials, we have taken the Top 49 companies in
this sector and have compared their performance in H1FY20
with H1FY19. On the whole, this sector has provided a positive
growth in sales, operating profit and net profit. The aggregate
top line of the sector grew by 11 per cent to `99,850.53 crore in
H1FY20, from `89,946.89 crore in H1FY19. The aggregate
operating profit increased by 32.32 per cent to `10,063.04 crore
in H1FY20, from `7,604.51 crore in H1FY19. The bottom line of
the sector expanded by 87.72 per cent to `3,652.22 crore in
H1FY20, from `1,945.51 crore in the same period for the

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previous fiscal year.
In terms of individual sales, the company to have the highest
share is Reddington (India) at `24,014.02 crore, followed by
Adani Enterprises and MMTC with `19,025.56 crore and
`13,176.36 crore, receptively. The company which showcased
the highest growth in sales was Apollo Tricoat Tubes, which
reported sales of `205.38 crore in H1FY20, as compared to
`3.14 crore reported in H1FY19. The company was followed by
ABans Enterprise, which reported a sales growth of 290.26 per
cent to `271.39 crore in H1FY20, from `69.54 reported in
H1FY19. In terms of PAT, the companies that contributed the
most to the aggregate PAT were Adani Ports and Special
Economic Zone, that reported a net profit of `2,087.86 crore in
H1FY20, increasing by over 59.18 per cent over `1,311.63 crore
reported in H1FY19. Out of the 49 companies, there were 11,
which reported net losses for the second half of the fiscal year.
Reliance Naval Engineering, Arshiya and Shipping Corporation
of India were some of those that reported net losses. They
posted net losses of `676.2 crore, `185.82 crore and `95.9 crore,
respectively.
Government of India recognises the importance of promoting
the services industry and has taken steps in this regard. The
government has introduced the Services Exports from India
Scheme (SEIS), aimed at promoting export of services from
India by providing duty scrip credit for eligible exports.
Under this scheme, service providers in India would be
rewarded for all eligible export services from India. The
implementation of Goods and Services Tax (GST) will help
reduce cost in the long-run on account of the availability of
GST input credit, which will lead to a decrease in the price of
services. Thus, despite the economic slowdown, there was an
expansion in the services industry driven by a boost in capacity
and demand along with favourable public policies introduced
in the past.

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Trading
ABans Enterprises 396.73 271.39 -2.03 0.29 69.54 0.89 0.65 290.28 -328.93 270.48 -56.27
Adani Enterprises 22,964.03 19,025.56 1,149.26 456.51 17,108.38 920.65 22.37 11.21 24.83 -10.91 1940.72
Apollo Tricoat Tubes 877.19 205.38 21.50 13.11 3.14 0.07 1.62 6440.61 31988.06 -79.62 708.45
Black Rose Industries 519.18 119.61 16.49 10.53 98.23 9.62 5.15 21.76 71.36 -28.94 104.59
Effingo Textile & Trading 620.72 0.15 0.01 0.10 0.15 -0.01 0.10 0.00 266.67 -160.00 2.02
Future Consumer 4,418.43 2,169.29 74.88 -11.41 1,851.73 45.52 3.20 17.15 64.48 -28.78 -456.53
Grandeur Products 680.51 68.70 9.66 7.32 77.69 12.10 8.25 -11.57 -20.18 10.78 -11.26
Gujarat Gas 15,416.50 5,240.07 837.10 750.94 3,827.36 409.30 162.46 36.91 104.52 -33.06 362.23
India Motor Parts & Access. 728.33 260.26 16.49 24.85 250.22 17.88 17.52 4.01 -7.74 12.74 41.80
Kavit Industries 577.84 27.30 -0.25 1.83 18.30 -0.01 0.64 49.20 -4820.00 96.97 184.01
Maa Jagdambe Tradelinks 552.50 0.16 -0.18 -0.18 -0.01 -0.12 -0.13 2357.14 -49.17 1613.17 -42.19
Mishtann Foods 795.00 241.60 12.07 6.05 238.53 10.83 5.46 1.29 11.38 -9.06 10.82
MMTC 2,812.50 13,176.36 91.06 43.28 12,510.86 78.86 41.62 5.32 15.47 -8.79 3.99
Novartis India 1,669.47 227.09 -7.99 -4.43 244.68 -21.08 19.37 -7.19 62.10 -144.86 -122.87
Redington (India) 4,521.20 24,014.02 480.76 242.83 21,323.41 354.45 181.89 12.62 35.64 -16.97 33.50
Sat Industries 333.72 119.82 17.62 8.73 109.53 17.33 8.21 9.40 1.71 7.56 6.29
SIRCA Paints India 652.22 69.51 18.77 16.21 61.40 16.06 13.26 13.22 16.86 -3.12 22.18
Sreeleathers 421.35 95.56 22.95 16.61 87.15 19.44 18.94 9.65 18.08 -7.14 -12.32
Sundram Fasteners 9,766.77 1,712.17 313.75 164.18 1,972.58 365.60 216.40 -13.20 -14.18 1.14 -24.13
Sunrise Universal 866.63 14.55 0.05 0.05 6.34 -0.11 -0.08 129.32 148.57 -572.13 162.20
SVP Global Ventures 448.70 692.97 107.74 34.42 988.73 102.02 25.12 -29.91 5.61 -33.64 37.02
Triveni Enterprises 571.83 0.00 -0.11 0.06 0.00 -0.09 -0.02 -27.91 480.00
Uniphos Enterprises 439.53 0.00 -1.90 19.84 0.00 -1.05 20.24 -80.93 -1.98
Westlife Development 5,322.06 778.39 106.77 3.55 691.77 61.76 19.50 12.52 72.88 -34.91 -81.80
Ratings
Care Ratings 1,499.72 121.55 48.57 50.22 156.65 89.26 70.63 -22.40 -45.58 42.58 -28.90
CRISIL 13,361.48 831.55 210.99 143.49 856.64 229.93 159.34 -2.93 -8.24 5.78 -9.95
ICRA 2,723.19 154.67 41.06 39.67 159.73 55.26 52.02 -3.17 -25.70 30.32 -23.74
Courier Services
Blue Dart Express 5,193.69 1,586.62 105.23 18.58 1,530.69 84.76 43.39 3.65 24.15 -16.51 -57.18

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 Economic Review For The First Half Of 2019 - 2020

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Logistics
Aegis Logistics 5,881.33 3,772.97 73.90 28.16 2,442.72 175.15 116.69 54.46 -57.81 266.08 -75.87
Allcargo Logistics 2,379.56 3,688.46 270.63 127.55 3,362.25 226.97 112.63 9.70 19.24 -8.00 13.25
Arshiya 410.03 153.55 46.80 -185.82 142.50 11.49 -86.88 7.75 307.43 -73.55 -113.88
Container Corporation Of India 34,543.94 3,377.58 828.77 -94.19 3,390.55 894.36 588.42 -0.38 -7.33 7.50 -116.01
Future Supply Chain Solutions 2,098.73 611.30 121.23 12.19 504.10 70.89 39.22 21.27 71.02 -29.09 -68.93
Gateway Distriparks 1,089.46 694.00 188.49 80.53 207.65 41.06 18.34 234.22 359.06 -27.20 339.16
GATI 619.09 897.76 39.14 -8.52 923.24 44.22 8.22 -2.76 -11.49 9.86 -203.65
Maheshwari Logistics 338.59 397.91 27.80 11.90 494.36 23.97 7.29 -19.51 15.96 -30.59 63.35
Mahindra Logistics 2,768.23 1,751.45 77.84 29.98 1,855.54 74.47 43.40 -5.61 4.53 -9.70 -30.92
Navkar Corporation 407.91 266.99 82.88 21.52 229.12 76.67 33.44 16.53 8.10 7.80 -35.64
Snowman Logistics 683.39 120.46 31.34 -10.39 113.41 27.92 1.94 6.22 12.24 -5.37 -634.84
TCI Express 2,875.89 525.64 60.30 44.51 494.79 54.24 32.39 6.23 11.17 -4.44 37.42
Transport Corporation Of India 2,042.43 1,240.34 112.78 63.01 1,201.80 104.42 54.07 3.21 8.01 -4.44 16.53
VRL Logistics 2,391.84 1,063.46 161.96 62.18 1,045.46 114.30 44.82 1.72 41.71 -28.22 38.72
Port
Adani Ports and Spe. Eco. Zone 73,854.18 5,615.63 3,153.80 2,087.86 5,019.04 2,338.89 1,311.63 11.89 34.84 -17.02 59.18
Gujarat Pipavav Port 4,075.40 376.85 229.15 124.15 347.12 188.86 102.46 8.57 21.33 -10.52 21.17
Shipping
Dredging Corporation Of India 927.92 319.50 40.72 -21.46 288.23 -13.38 -76.31 10.85 404.36 -136.42 71.87
Reliance Naval and Engg. 353.31 46.88 6.68 -676.20 92.55 -10.82 -710.34 -49.35 161.74 -182.05 4.81
Seamec 1,201.46 174.07 79.93 66.82 94.27 15.49 4.02 84.65 416.01 -64.22 1562.19
Shipping Corporation Of India 2,880.97 1,931.30 288.23 -95.90 1,834.07 -6.90 -348.51 5.30 4277.25 -102.52 72.48
The Great Eastern Shipping 4,399.44 1,600.13 450.35 -72.89 1,620.70 273.12 -468.55 -1.27% 64.89% -40.12% 84.44%

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Sector Sponsor
Textile
T
extile Industry is one of the oldest industries in India
with the first cotton textile mill in Mumbai established
all the way back in 1854. India has a wide and far-
reaching segment in this industry ranging from the
unorganised hand-woven segment to the organised capital and
technology-intensive segment. Today, the textile and apparel
market has become a vital contributor to the Indian economy,
providing employment to more than 45 million people and
contributing 12 per cent to the total export earnings of the
country. This can be attributed to the abundant availability of
raw materials used for manufacturing apparel such as cotton,
silk, wool, etc. India is the largest producer of jute and cotton
and the second-largest producer of silk in the world. The high
abundance of raw material coupled with cheap labour cost,
makes the cost of manufacturing textile and apparel
significantly low as compared to competing industries. With a
strong population base and one of the largest Gen Y
populations in the world, the expanding middle class is also
boosting Indian consumption patterns. The size of the Indian
textile market is expected to touch US$ 223 billion by 2021,
growing at a CAGR of 10.14 per cent between 2009 and 21.
To study the textile industry, we have computed the
performance of 44 companies in this sector and have compared
their performance on a YoY basis from H1FY19 to H1FY20.
On an average, the sales for this sector increased marginally by
0.32 per cent, the EBITA on an average increased by 1.07 per
cent and the net profit increased by 9.58 per cent. Although the
highest growth in sales was reported by Indo Rama Synthetics
(India) at 47 per cent to `1,103.96 crore in H1FY20 from
`749.95 crore in H1FY19, it reported net losses for both the
periods under consideration. It had net losses of `74.16 crore in
78 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020
H1FY20 and losses of `61.82 crore in H1FY19. Vishal Fabrics
reported strong growth in the net sales as well which came in at
`626.64 crore in H1FY20 from `483.78 crore in H1FY19. The
company reported net profits of `16.61 crore in H1FY20 from
`8.45 crore for the same period in the previous corresponding
year, registering a massive growth of 93.94 per cent in net
profits. Among those companies that had a decline in net sales,
Swan Energy recorded the biggest drop of 82 per cent. The sales
reported by the company were `123.92 crore in H1FY20 from
`688.58 crore in H1FY19. The company reported a significant
drop in net profits as well with `2.82 crore reported in H1FY20,
a drop of 91.91 per cent from `34.85 crore in H1FY19. On a
whole, 4 companies out of 44, reported net losses in the first
half of the fiscal year, namely, Alok Industries, Indo Rama
Synthetics, Zodiac Clothing Company and Jaybharat Textiles
and Real Estate.
With the introduction of various international apparel giants
starting operations in India, the textile industry in India is
experiencing a significant increase in collaboration between
global majors and domestic companies. The textile industry
had `18,564.40 crore of FDI equity inflow from the period of
April 2000 to June 2019. Additionally, the proposed hike in FDI
limit in multi-brand retail will bring in more players, more
investment thereby, providing more options to consumers.
Exports in the Indian textiles and apparel industry are expected
to reach US$ 300 billion by 2024-25, resulting in a tripling of
Indian market share from 5 per cent to 15 per cent.
To bolster the performance of the industry, the government has
undertaken various schemes to drive the growth of the Textile
Industry. Under the Union Budget 2019-20, the government
allocated `700 crore (US$ 97.02 million) crore for Amended
Technology Upgradation Fund Scheme (ATUFS) which aims to
promote modernisation and upgradation of the textile industry
by providing credit at reduced rates. This scheme is estimated to
create employment for 35 lakh people and enable investments
worth `95,000 crore (US$ 14.17 billion) by 2022.
The government has allocated `159.08 crore (US$ 22.05 million)
towards schemes for power loom units and an additional `20
crore (US$ 2.77 million) for the Scheme for Integrated Textile
Parks. The National Handloom Development Programme will
get `456.80 crore (US$ 63.31 million) and the Integrated
Processing Development Scheme will get `3.50 crore (US$ 0.49
million). The Government of India has assigned 207
Harmonised System Nomenclature (HSN) to promote India’s
technical textile industry and further increase its market size to
`2 lakh crore (US$ 27.72 billion) by 2020-21.
All these efforts are expected to drive growth in the already
large textile industry for the years to come, despite the current
economic slowdown. The increased penetration of organised
retail, favourable demographics and rising income levels among
India's growing population is expected to continue to drive the
textile demand in the country. Thus, the overall prospects of the
textile sector look promising.
DSIJ.in
 Economic Review For The First Half Of 2019 - 2020

M Cap H1 FY20 H1 FY19 Change (%)

Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA EBITDA Margin PAT
Textile
Alok Industries 377.39 1,628.44 13.68 -220.11 1,682.56 -106.24 -2,564.33 -3.22 112.88 -851.63 91.42
Arvind 983.31 3,858.64 349.37 73.70 4,653.87 428.59 119.94 -17.09 -18.48 1.71 -38.55
Bombay Dyeing & Man. Co. 1,521.13 1,203.82 360.85 117.16 1,230.08 366.18 152.54 -2.13 -1.46 -0.69 -23.19
Cantabil Retail India 449.17 134.84 31.77 0.57 117.49 9.28 2.46 14.77 242.45 -66.49 -76.86
Century Enka 387.74 709.65 48.98 64.48 884.95 88.86 45.68 -19.81 -44.88 45.48 41.16
Cheviot Company 503.25 229.28 28.54 29.08 182.76 29.89 25.76 25.45 -4.50 31.37 12.89
Dollar Industries 787.50 476.85 50.27 26.55 486.43 64.45 33.34 -1.97 -21.99 25.67 -20.34
Garware Technical Fibres 2,546.52 464.75 84.32 75.86 506.09 104.29 64.30 -8.17 -19.15 13.58 17.98
Gloster 334.89 249.78 30.69 4.30 243.13 44.12 30.80 2.74 -30.44 47.69 -86.04
Gokaldas Exports 311.73 702.89 34.73 39.74 578.98 23.59 5.57 21.40 47.27 -17.57 613.43
Himatsingka Seide 1,213.98 1,283.31 269.05 79.33 1,248.55 236.71 97.30 2.78 13.66 -9.57 -18.47
Indo Count Industries 934.69 1,043.13 149.50 42.52 926.27 97.24 50.57 12.62 53.74 -26.75 -15.92
Jindal Worldwide 1,218.16 1,017.16 95.18 20.90 1,119.32 112.83 25.11 -9.13 -15.64 7.72 -16.78
Kewal Kiran Clothing 1,202.92 276.84 60.25 45.72 258.18 69.32 47.49 7.23 -13.08 23.37 -3.73
Kitex Garments 700.58 342.02 69.11 52.88 290.70 63.46 44.73 17.66 8.91 8.03 18.23
KPR Mill 4,531.48 1,708.98 347.16 201.37 1,664.69 318.84 164.70 2.66 8.88 -5.71 22.26
Lux Industries 3,204.86 614.91 89.14 62.04 539.38 80.77 40.13 14.00 10.37 3.29 54.60
Mayur Uniquoters 947.80 252.41 46.03 35.87 288.86 65.27 45.63 -12.62 -29.47 23.90 -21.38
Monte Carlo Fashions 556.34 212.74 17.85 0.65 206.73 28.04 13.17 2.91 -36.36 61.72 -95.06
Page Industries 24,860.48 1,610.36 335.67 225.18 1,506.02 332.10 217.07 6.93 1.07 5.79 3.74
PDS Multinational Fashions 836.10 3,207.40 51.92 35.80 2,911.44 15.62 22.15 10.17 232.46 -66.86 61.65
Pearl Global Industries 334.71 816.35 36.63 17.56 861.29 28.04 16.67 -5.22 30.63 -27.44 5.32
Ruby Mills 305.14 89.23 21.49 10.04 94.68 23.43 13.04 -5.75 -8.29 2.77 -23.05
Rupa & Company 1,466.04 467.01 64.75 44.66 431.05 69.76 38.37 8.34 -7.19 16.73 16.41
SP Apparels 542.63 463.70 41.55 42.21 381.55 60.85 27.50 21.53 -31.72 77.98 53.50
Swan Energy 2,603.78 123.92 10.79 2.82 688.58 38.08 34.85 -82.00 -71.66 -36.50 -91.92
TCNS Clothing Co 3,638.33 600.48 123.23 38.18 557.10 86.19 61.68 7.79 42.97 -24.61 -38.10
Vardhman Textiles 5,510.59 3,314.03 500.39 236.18 3,385.07 623.17 353.33 -2.10 -19.70 21.92 -33.16
Vishal Fabrics 1,097.83 626.64 47.69 16.61 483.78 24.59 8.45 29.53 93.90 -33.20 96.56
Voith Paper Fabrics India 355.03 55.95 14.96 11.68 52.68 13.99 11.09 6.21 6.94 -0.68 5.39
Welspun India 4,807.61 3,553.06 754.31 358.67 3,329.09 585.92 254.52 6.73 28.74 -17.10 40.92
Zodiac Clothing Company 385.27 94.76 -1.51 -12.81 100.12 -12.07 -10.50 -5.35 87.49 -656.54 -22.00
Textile - Machinery
Lakshmi Machine Works 3,492.65 863.73 23.18 31.49 1,407.98 147.21 90.11 -38.65 -84.25 289.55 -65.05
Stovec Industries 421.47 88.50 15.71 11.92 96.09 22.39 25.87 -7.90 -29.85 31.29 -53.92
Textile - Manmade Fibres
Ganesha Ecosphere 520.85 478.99 63.41 31.88 500.33 52.25 24.01 -4.26 21.36 -21.11 32.74
Indo Rama Synthetics (India) 693.26 1,103.96 4.46 -74.16 749.95 3.70 -61.82 47.20 20.54 22.12 -19.96
Textile - Spinning
Ambika Cotton Mills 481.56 311.39 53.05 25.58 338.16 64.67 33.72 -7.92 -17.97 12.25 -24.14
Filatex India 812.83 1,377.04 103.70 81.87 1,422.76 121.80 40.39 -3.21 -14.86 13.68 102.70
Jaybharat Textiles & Real Estate 765.68 18.06 0.20 -9.39 24.86 2.44 -7.15 -27.37 -91.96 803.02 -31.36
Rajapalayam Mills 565.97 191.33 27.05 8.92 199.73 36.54 27.27 -4.21 -25.97 29.40 -67.29
Sutlej Textiles & Industries 491.49 1,277.68 101.34 26.75 1,302.79 117.49 33.48 -1.93 -13.75 13.70 -20.10
Trident 3,490.73 2,626.11 546.37 260.34 2,522.70 456.59 168.36 4.10 19.66 -13.01 54.63
Textile - Weaving
Raymond 4,249.73 3,318.29 316.49 70.58 3,098.41 255.27 69.49 7.10 23.98 -13.62 1.57
Siyaram Silk Mills Ltd. 1,028.10 813.61 93.13 40.13 780.76 100.54 34.35 4.21 -7.37 12.50 16.83

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Economic Review For The First Half Of 2019 - 2020

Sector Sponsor Miscellaneous

H1 FY20 H1 FY19 Change (%)
M Cap EBITDA
Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA Margin PAT
Abrasives
Carborundum Universal 6,093.11 1,355.65 199.67 109.01 1,293.92 215.80 115.28 4.77 -7.47 13.23 -5.44
Grindwell Norton 6,421.76 803.66 135.09 95.17 797.92 140.04 84.28 0.72 -3.53 4.41 12.92
Wendt (India) 565.80 82.99 13.32 8.60 83.99 17.85 9.97 -1.19 -25.38 32.41 -13.74
Breweries & Distilleries
Associated Alcohols & Breweries 331.03 253.76 34.66 22.77 174.66 31.17 16.42 45.29 11.21 30.64 38.71
Globus Spirits 406.65 608.72 60.45 23.08 507.36 45.82 10.35 19.98 31.92 -9.05 122.96
GM Breweries 806.40 854.65 50.07 36.12 818.04 64.21 41.61 4.48 -22.02 33.98 -13.19
Radico Khaitan 4,253.22 5,197.13 185.83 133.35 4,021.37 182.88 96.91 29.24 1.61 27.19 37.60
Som Distilleries & Breweries 365.07 408.63 36.42 17.10 267.01 31.34 14.35 53.04 16.18 31.72 19.15
United Breweries 33,690.50 8,294.97 521.40 279.67 7,489.74 718.65 385.69 10.75 -27.45 52.65 -27.49
United Spirits 42,533.80 14,359.70 810.70 422.00 13,543.40 624.70 340.00 6.03 29.77 -18.30 24.12
Airlines
Hindustan Aeronautics 24,164.51 6,742.69 1,557.85 1,190.60 5,424.29 1,067.60 649.96 24.31 45.92 -14.81 83.18
Interglobe Aviation 50,835.44 17,525.26 2,458.91 134.86 12,697.29 -1,016.04 -624.34 38.02 342.01 -157.03 121.60
Spicejet 5,772.29 5,847.33 473.94 -200.91 4,116.68 -237.74 -427.43 42.04 299.35 -171.25 53.00
Diamond & Jewellery
Asian Star Company 1,213.32 1,621.62 67.65 39.15 1,984.13 100.77 67.44 -18.27 -32.86 21.73 -41.94
Goldiam International 324.74 194.78 21.79 20.02 195.51 9.95 18.55 -0.37 118.98 -54.50 7.95
PC Jeweller 932.21 2,473.34 289.03 87.95 4,058.29 454.19 235.65 -39.05 -36.36 -4.23 -62.68
Rajesh Exports 20,043.72 107,446.39 691.15 617.57 97,302.60 1,011.50 714.02 10.42 -31.67 61.61 -13.51
Renaissance Global 625.95 1,160.85 71.21 38.81 1,053.19 54.92 33.65 10.22 29.67 -15.00 15.35
Thangamayil Jewellery 456.18 886.44 53.63 24.65 751.13 39.68 17.38 18.01 35.16 -12.68 41.86
Titan Company 105,872.94 9,812.68 1,095.72 678.92 9,018.26 951.79 631.43 8.81 15.12 -5.48 7.52
Diversified
3M India 24,217.65 1,443.58 259.72 177.05 1,383.52 249.31 163.45 4.34 4.18 0.16 8.32
Andhra Sugars 770.11 567.06 166.01 99.73 473.60 144.09 79.29 19.73 15.21 3.92 25.78
Andrew Yule & Company 667.42 171.33 1.26 5.98 156.24 0.87 11.66 9.65 44.76 -24.25 -48.71
Balmer Lawrie & Company 2,192.27 812.87 78.93 66.38 906.00 96.90 73.31 -10.28 -18.54 10.14 -9.45
Birla Corporation 4,474.01 3,510.67 696.74 228.96 3,120.31 431.96 100.15 12.51 61.30 -30.25 128.62
Century Textiles & Industries 5,415.57 1,759.53 368.60 286.11 4,277.10 811.35 341.63 -58.86 -54.57 -9.45 -16.25
DCM Shriram 5,642.77 3,655.35 561.26 337.69 3,767.98 633.72 385.56 -2.99 -11.43 9.54 -12.42
Grasim Industries 48,433.74 37,291.20 9,271.22 2,762.49 33,651.70 7,399.92 339.41 10.82 25.29 -11.55 713.91
Kesoram Industries 748.60 1,653.97 146.33 -108.05 1,857.87 60.18 -159.65 -10.97 143.15 -63.39 32.32
Prism Johnson 3,012.59 2,821.85 267.67 56.78 2,832.96 261.20 77.24 -0.39 2.48 -2.80 -26.49
SRF 19,673.38 3,566.24 681.18 386.06 3,656.62 626.06 285.04 -2.47 8.80 -10.36 35.44
Surya Roshni 841.71 2,735.95 167.54 42.01 2,665.27 157.78 45.67 2.65 6.19 -3.33 -8.01
Texmaco Infra. & Holdings 565.14 6.58 0.97 4.68 8.16 3.94 6.05 -19.37 -75.49 229.03 -22.78
Educational Institutions
Zee Learn 616.32 291.36 106.57 51.02 239.19 75.46 38.17 21.81 41.22 -13.74 33.65
Cable
Finolex Cables 5,433.17 1,523.50 190.40 204.69 1,505.15 215.62 183.25 1.22 -11.70 14.63 11.70
HFCL 2,228.39 2,123.66 286.74 152.18 2,169.71 166.89 84.12 -2.12 71.81 -43.03 80.91
KEI Industries 3,699.74 2,311.52 236.15 121.98 1,880.69 186.98 73.55 22.91 26.30 -2.68 65.85

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 Economic Review For The First Half Of 2019 - 2020

H1 FY20 H1 FY19 Change (%)

M Cap EBITDA
Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA Margin PAT
Precision Wires India 353.62 796.43 39.91 16.30 874.22 49.00 22.04 -8.90 -18.56 11.86 -26.02
Sterlite Technologies 4,545.67 2,791.68 611.89 303.74 1,961.23 518.18 270.03 42.34 18.08 20.54 12.48
Universal Cables 549.57 801.61 84.10 38.82 639.24 81.27 33.77 25.40 3.49 21.17 14.97
Electronics - Components
Centum Electronics 457.99 423.55 38.26 11.18 439.54 1.86 -23.23 -3.64 1952.74 -95.31 148.15
Olectra Greentech 1,410.15 223.43 9.86 11.40 104.03 -2.71 -10.35 114.78 464.41 -158.94 210.23
Ferro & Silica Manganese
Indian Metals & Ferro Alloys 490.31 835.40 46.58 -22.41 807.30 131.25 50.23 3.48 -64.51 191.58 -144.61
Maithan Alloys 1,347.28 955.50 121.14 94.00 961.96 166.49 131.22 -0.67 -27.24 36.51 -28.37
Compressors / Pumps
Dynamatic Technologies 602.69 695.17 105.16 16.97 748.88 83.97 16.21 -7.17 25.24 -25.88 4.69
Elgi Equipments 4,019.99 911.38 74.58 27.92 865.27 82.79 41.85 5.33 -9.91 16.92 -33.27
Ingersoll-Rand (India) 2,157.83 362.55 53.50 41.78 340.30 54.14 43.17 6.54 -1.18 7.81 -3.22
Kirloskar Pneumatic Company 784.47 376.97 20.74 11.30 324.40 32.42 19.87 16.21 -36.03 81.65 -43.13
Shakti Pumps (India) 371.46 196.98 15.11 0.77 234.73 34.04 15.91 -16.08 -55.62 89.10 -95.17
WPIL 600.68 190.41 36.30 27.74 260.32 56.42 44.83 -26.85 -35.66 13.68 -38.13
Defence
Bharat Dynamics 5,531.43 1,151.05 269.41 172.00 1,154.40 189.53 110.16 -0.29 42.15 -29.85 56.15
Engineering
Engineers India 6,372.83 1,458.63 246.41 191.85 1,254.73 177.83 184.40 16.25 38.56 -16.10 4.04
Kennametal India 2,177.60 466.40 54.70 31.30 422.81 57.87 36.02 10.31 -5.48 16.70 -13.10
L&T Technology Services 15,481.52 2,749.60 555.90 410.30 2,418.30 424.90 389.90 13.70 30.83 -13.09 5.23
Rites 7,280.00 1,245.43 296.93 325.26 743.30 212.95 198.80 67.55 39.44 20.17 63.61
Engineering - Industrial Equipments
Action Construction Equipment 798.35 561.47 42.05 26.25 680.20 48.09 29.06 -17.45 -12.56 -5.60 -9.66
AIA Engineering 15,610.02 1,429.89 322.71 291.54 1,455.84 303.39 226.32 -1.78 6.37 -7.66 28.82
BEML 4,037.23 1,268.81 -82.51 -122.77 1,188.73 -92.17 -143.45 6.74 10.48 -19.23 14.42
Bharat Electronics 24,073.54 4,844.23 892.85 544.22 5,483.47 1,164.93 751.04 -11.66 -23.36 15.26 -27.54
Bharat Heavy Electricals 14,798.77 10,757.40 0.15 -97.67 12,715.37 528.02 340.75 -15.40 -99.97 297708.73 -128.66
CMI FPE 396.11 195.58 15.37 13.57 135.89 3.82 13.77 43.92 302.57 -64.25 -1.46
Disa India 685.08 117.90 18.94 15.41 112.67 13.47 11.10 4.64 40.61 -25.58 38.83
Elecon Engineering Company 394.94 537.54 71.75 9.32 624.25 65.69 55.60 -13.89 9.23 -21.17 -83.24
Forbes & Company 2,207.79 100.57 2.09 -6.01 113.68 12.33 4.88 -11.53 -83.05 421.92 -223.16
Genus Power Infrastructures 593.21 550.71 83.01 44.41 461.93 52.40 26.76 19.22 58.42 -24.75 65.94
GMM Pfaudler 2,729.75 266.35 50.63 32.68 192.40 31.36 18.90 38.44 61.47 -14.27 72.95
HLE Glascoat 522.42 80.47 10.25 5.79 55.57 5.75 2.91 44.82 78.31 -18.78 98.76
Ion Exchange (India) 1,136.67 701.19 51.47 42.48 434.37 21.84 22.95 61.43 135.67 -31.50 85.10
ISGEC Heavy Engineering 2,513.97 2,260.77 138.33 78.67 1,719.90 108.10 59.75 31.45 27.96 2.72 31.67
Kirloskar Brothers 1,094.26 955.00 50.00 15.80 944.30 52.60 38.10 1.13 -4.94 6.39 -58.53
Kirloskar Industries 581.11 29.98 22.55 32.75 2.07 -4.98 35.31 1348.31 552.81 -419.85 -7.25
Kirloskar Oil Engines 2,136.67 1,448.37 116.96 81.09 1,582.00 147.15 90.87 -8.45 -20.52 15.19 -10.76
KSB 2,273.82 591.10 63.90 43.50 466.10 48.50 32.60 26.82 31.75 -3.75 33.44
Mauria Udyog 437.83 440.00 14.11 -10.40 628.62 32.42 4.76 -30.01 -56.48 60.82 -318.58
Nesco 4,671.50 198.90 129.64 111.79 175.50 112.91 85.63 13.33 14.82 -1.30 30.56
Praj Industries 1,845.45 505.74 23.05 24.90 442.63 18.10 12.43 14.26 27.35 -10.28 100.32
Shriram Pistons & Rings Ltd 1,610.88 855.72 99.67 47.70 951.90 147.36 70.39 -10.10 -32.36 32.91 -32.23
Skipper 475.88 651.82 77.21 9.64 1,002.66 83.78 6.99 -34.99 -7.83 -29.47 37.86
Thermax 12,566.22 2,998.30 229.42 88.46 2,462.90 179.35 123.52 21.74 27.92 -4.83 -28.38
Triveni Turbine 3,024.52 460.96 96.62 73.19 389.00 75.37 49.48 18.50 28.19 -7.56 47.92
Yuken India 571.26 114.37 8.65 3.47 132.04 10.12 6.01 -13.38 -14.54 1.36 -42.28

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 Special Supplement
Economic Review For The First Half Of 2019 - 2020
H1 FY20 H1 FY19 Change (%)
M Cap EBITDA
Company Name (` Cr.) Sales EBITDA PAT Sales EBITDA PAT Sales EBITDA Margin PAT
Refractories
IFGL Refractories 467.07 470.44 50.40 26.09 456.22 60.35 29.18 3.12 -16.49 23.47 -10.59
Morganite Crucible (India) 437.91 62.17 9.62 6.92 61.87 10.57 9.03 0.49 -8.99 10.42 -23.38
Orient Refractories 2,794.44 367.21 66.05 48.28 360.79 59.91 44.27 1.78 10.25 -7.68 9.06
Vesuvius India 2,238.66 441.34 64.19 41.20 463.05 74.86 46.41 -4.69 -14.25 11.15 -11.23
Mining & Minerals
Coal India 121,837.14 45,321.62 10,223.56 8,154.88 46,458.93 9,646.69 6,870.45 -2.45 5.98 -7.95 18.69
Gujarat Mineral Devp. Corp. 1,976.37 769.27 141.27 134.48 938.79 330.22 -35.62 -18.06 -57.22 91.55 477.55
KIOCL Ltd 6,922.03 959.66 -4.67 20.71 818.60 13.22 45.90 17.23 -135.33 431.86 -54.88
MOIL 3,646.45 533.18 193.90 179.29 671.30 283.09 218.54 -20.57 -31.51 15.96 -17.96
NMDC 38,655.85 5,505.50 2,927.03 1,882.80 4,859.91 2,683.31 1,611.82 13.28 9.08 3.85 16.81
Orissa Minerals Devp.Company 779.73 0.00 -40.52 -33.90 0.00 -39.46 -21.35 -2.67 -58.78
Sandur Manganese & Iron Ores 547.88 334.51 127.68 79.19 371.79 140.58 86.61 -10.03 -9.18 -0.94 -8.57
Paper & Paper Products
Emami Paper Mills 461.31 727.31 85.32 2.10 789.89 124.17 37.44 -7.92 -31.29 34.00 -94.39
International Paper APPM 1,147.37 640.09 140.14 68.94 675.76 160.72 82.30 -5.28 -12.80 8.63 -16.23
JK Paper 2,239.63 1,502.82 484.60 269.07 1,580.05 404.18 204.71 -4.89 19.90 -20.67 31.44
Kuantum Papers 405.78 379.04 69.40 37.74 353.20 60.74 33.13 7.32 14.25 -6.07 13.91
NR Agarwal Industries 341.49 702.72 93.17 47.56 652.09 101.31 55.38 7.76 -8.03 17.18 -14.13
Orient Paper & Industries 568.66 308.44 36.36 19.58 322.24 64.57 48.38 -4.28 -43.69 70.00 -59.53
Satia Industries 826.50 428.34 91.34 51.50 366.66 78.35 42.80 16.82 16.58 0.21 20.31
Seshasayee Paper & Boards 1,057.02 578.32 134.33 85.56 606.05 129.39 77.22 -4.58 3.82 -8.08 10.80
Tamil Nadu Newsprint & Papers 1,141.97 1,727.95 353.24 98.68 1,931.01 263.61 31.21 -10.52 34.00 -33.22 216.18
West Coast Paper Mills 1,397.59 1,045.06 285.74 184.12 964.51 254.06 172.52 8.35 12.47 -3.66 6.72
Telecommunication - Equipment
AGC Networks 416.62 2,486.54 160.64 49.06 385.03 19.97 10.42 545.80 704.41 -19.72 370.83
Astra Microwave Products 724.07 139.01 29.19 13.41 98.03 0.73 3.36 41.80 3893.43 -96.45 299.46
GTL Infrastructure 505.08 704.08 133.66 -503.64 773.71 86.44 -495.11 -9.00 54.63 -41.15 -1.72
ITI 8,328.65 580.45 15.53 -53.85 472.23 -163.35 10.25 22.92 109.51 -1392.88 -625.37
Prabhat Technologies (India) 348.60 22.64 -5.85 -5.51 89.05 -3.50 -10.08 -74.58 -67.11 84.79 45.31
Telecommunication - Service Provider
Bharti Airtel 229,475.67 41,869.20 17,079.90 -25,630.90 40,502.50 12,857.90 400.20 3.37 32.84 -22.18 -6504.52
Bharti Infratel 47,312.98 3,393.70 1,838.30 1,099.70 3,417.20 1,535.30 702.20 -0.69 19.74 -17.06 56.61
Hathway Cable & Datacom 3,389.75 273.17 67.71 22.79 260.35 93.46 -8.53 4.92 -27.55 44.83 367.17
Mahanagar Telephone Nigam 597.87 781.67 -900.23 -2,002.84 936.46 -775.85 -1,802.43 -16.53 -16.03 28.06 -11.12
Tata Communications 11,140.65 8,441.38 1,659.30 127.38 7,980.50 1,185.56 -59.86 5.78 39.96 -24.42 312.80
Tata Teleservices (Maharashtra) 443.77 563.80 173.03 -2,563.30 656.29 79.76 -837.73 -14.09 116.94 -60.40 -205.98
Vodafone Idea 17,384.91 22,113.90 6,997.10 -55,983.40 13,552.70 1,120.80 -4,819.40 63.17 524.30 -73.86 -1061.63
Retailing
Aditya Birla Fashion and Retail 17,906.29 4,362.64 660.22 28.46 3,920.86 256.64 48.33 11.27 157.26 -56.75 -41.11
Avenue Supermarts 120,545.30 11,729.54 1,111.34 668.76 9,431.94 812.32 476.35 24.36 36.81 -9.10 40.39
Bata India 22,066.25 1,604.10 428.33 172.10 1,470.36 219.16 138.21 9.10 95.44 -44.18 24.52
Future Enterprises 969.00 2,420.82 719.59 3.40 2,231.62 612.86 -23.36 8.48 17.42 -7.61 114.55
Future Lifestyle Fashions 8,069.62 2,953.51 487.40 33.25 2,490.03 205.82 53.85 18.61 136.81 -49.91 -38.25
Future Retail 17,457.76 10,543.24 1,307.62 333.72 9,467.23 468.43 328.22 11.37 179.15 -60.11 1.68
Khadim India 312.22 438.89 35.43 1.83 416.05 35.37 16.00 5.49 0.16 5.32 -88.55
Shoppers Stop 3,007.06 1,677.75 275.39 -2.92 1,691.10 95.52 22.98 -0.79 188.29 -65.59 -112.72
SORIL Infra Resources 343.82 91.38 5.22 -3.32 67.40 12.80 7.71 35.59 -59.24 232.64 -143.08
Trent 18,652.43 1,585.19 296.72 96.23 1,206.53 130.17 71.26 31.38 127.95 -42.36 35.03
V2 Retail Ltd. 331.88 353.03 39.24 1.00 343.43 11.98 -7.30 2.80 227.64 -68.62 113.68
Vaibhav Global Ltd. 2,578.75 925.15 117.18 84.97 837.65 89.24 69.20 10.45 31.31 -15.89 22.78
V-Mart Retail Ltd. 2,940.01 767.21 69.11 -0.44 623.39 39.35 20.84 23.07 75.62 -29.92 -102.11

82 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in

QueryBoard
Investment Horizon
Query-Specific

ORIENTAL AROMATICS LTD (OAL) CYIENT LTD

I have purchased 80 shares of Oriental Aromatics
Ltd (OAL) at `204. Should I continue to hold or
accumulate at this level?
 - Bipin S
I hold 50 Shares of Cyient Ltd bought at an average
cost of `483. Can I accumulate or hold?
 - R Jayaramachandran

BUY HOLD
BSE/NSE Code 500078 /OAL BSE Code 532175 / CYIENT
Face Value `5 Face Value `5
CMP `176.20 CMP `433.05
52-Week High `309.85/ Low `165.00 52-Week High `692.30 / Low `380.00
Your Current (13.62 per cent) Your Current (10.35 per cent)
Profit/(Loss) Profit/(Loss)

C C
amphor & Allied Products Ltd is India’s largest
manufacturer of variety of terpene chemicals and other
speciality aroma chemicals. The company’s vast
product range includes synthetic camphor, terpineol, pine oils,
resins, astrolide, dihydromyrcenol, pharmaceuticals, soaps &
cosmetics, rubber & tyre, paints & varnishes and many more.
On the consolidated financial front, the net sales of the
company fell by 3.77 per cent to `204.16 crore in Q2FY20 from
`212.16 crore posted in Q2FY19. The Profit before Interest,
Depreciation and Taxes (PBIDT) came in at `28.84 crore in
Q2FY20, reducing by 18.43 per cent from `35.36 crore,
reported in the same quarter of the previous year. The Profit
after Tax (PAT) on the other hand, increased by 48.06 per cent
to `26.72 crore when compared to net profit of `17.98 crore
gained in Q2FY19. On the annual front, the company reported
net sales for FY19 at `754.69 crore, posting an increase of 49.14
per cent from `506.03 crore posted in FY18. The PBIDT came
in at `114.69 crore in FY19 as compared to `64.75 crore in
FY18, representing a 77.13 per cent growth. The PAT was
`57.14 crore in FY19, signifying a substantial growth of 128.74
per cent, as compared to `24.98 crore in FY18. On the basis of
improving financials and growth potential, we recommend our
investor-readers to BUY
yient is a company engaged in providing software-en-
abled engineering and Geographic Information System
(GIS) services. Its business segments include Data &
Network Operations (DNO), Engineering, Manufacturing,
Industrial Products (EMI) and Product Realisation (PR). On a
consolidated quarterly basis, net sales fell by 2.37 per cent to
`1158.9 crore in Q2FY20, from `1,187 crore in Q2FY19. PBT
reported for Q2FY20 was `125.4 crore, a decrease of 30.68 per
cent from `180.9 crore in Q2FY19. Net profit reported for
Q2FY20 was `98.5 crore, falling 22.5 per cent from `127.1 crore
in Q2FY19. On an annual basis, net sales grew by 17.87 per cent
to `4,617.5 crore in FY19 from `3,917.5 crore in FY18. PBT for
FY19 was reported at `619.8 crore, up by 14.54 per cent from
`541.1 crore in the previous fiscal year. Net profit grew by 18.36
per cent to `477.1 crore in FY19 from `403.1 crore in FY18.
Cyient has been struggling with stress in its service business
which saw a muted growth in the latest quarter owing to the
monsoon season, thus this sector indicates a pick-up growth in
Q4FY20, and is also expected to boost revenue. CYL’s cost
optimisation initiatives are bearing fruit and are expected to
strengthen margins in FY21 where the full benefits of improved
operational efficiency will be visible. Thus, we recommend a
HOLD.

Readers are requested to send only one query at a time so that more readers get a chance. For complaints regarding non-receipt of
dividend, bonus, rights and other matters, investors may write to www.investor.sebi.gov.in

Company Name: DEMOCRATIZING WEALTH CREATION

Vol. No. 35
31 No.
No.20
03
Query:
Send in your queries:
DSIJ Pvt.
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Name: North Main Road, Near Axis Bank,
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E-mail: Email:editorial@DSIJ.in

DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 83

 QueryBoard
ASHOKA BUILDCON
I have 25 shares of Ashok Buildcon bought in May
2019 for `118. Should I sell or hold?
 -Manas Jog
HOLD
NSE Code 533271 / ASHOKA
Face Value `5
CMP `102.95
52-Week High `155.00 / Low `89.50
Your Current (12.75 per cent)
Profit/(Loss)
A N
shoka Buildcon (ABL) is an infrastructure development
company engaged in construction and maintenance of
roads and supporting services to land support-operation
of toll roads. The company operates through three segments,
namely, construction and contract-related activities, Build,
Operate and Transfer (BOT) Projects and sale of goods. Its
construction and contract-related activities segment consist of the
execution of construction projects to provide solutions in civil
and electrical engineering to core/infrastructure sectors. Its BOT
activity relates to the execution of projects on a long-term basis
comprising developing, operating and maintaining the infrastruc-
ture facility. The sales of goods segment deal with the selling of
Ready Mix Concrete (RMC) and Plain Cement Concrete (PCC)
poles. The company has projects under construction in Tamil
Nadu, Karnataka, Odisha and West Bengal.
On a consolidated quarterly basis, net sales grew by 3.27 per cent
to `1,037.8 crore in Q2FY20 from `1,004.9 crore in Q2FY19.
PBT reported for Q2FY20 was `56.1 crore, up by 78.10 per cent
from `31.5 crore in the same quarter for the previous fiscal year.
Q2FY20 saw a net profit of `11.5 crore as against a net loss of
`3.7 crore in Q2FY19. On the annual front, net sales saw an
increase of 36.83 per cent to `4,930.12 crore in FY19 from `3,603
crore in FY18. The company reported an operating profit of
`130.62 crore in FY19, as against an operating loss of `34.94
crore in FY18. The company incurred a net loss of
`40.28 crore in FY19, as well since it reported a net loss of
`118.65 crore in FY18.
The company is well-positioned to exploit upcoming growth
opportunities offered by India’s roads sector, especially from
`600 billion-`700 billion bid pipelines expected to flow from
NHAI in the second half of FY20. The company also plans to
participate in the upcoming bids for the Ganga Expressway and
Defence Corridor in Uttar Pradesh. We can expect ABL’s
execution to pick-up pace owing to its healthy order book and
opportunities ahead. Thus, we recommend a HOLD.
84 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020
Investment Horizon
Query-Specific
NBCC
I have 480 shares bought at `96.3 of NBCC from last
2yrs. The share is continuously falling and trading
between 30-40. Should I continue accumulating or
start selling now? 
 - Ajit Nair
HOLD
BSE/NSE Code 534309 / NBCC
Face Value `1
CMP `34.65
52-Week High `68.35 / Low `28.55
Your Current (64 per cent)
Profit/(Loss)
BCC provides civil engineering construction services
and operates through three segments, namely, Project
Management Consultancy (PMC), Real Estate
Development, and Engineering, Procurement and Construc-
tion (EPC). The company offers management and consultancy
services for civil construction projects, including residential
and commercial complexes, re-development of government
colonies, education and medical institutions, infrastructure
project roads, water supply systems, storm-water systems and
water storage solutions.
On a consolidated quarterly basis, net sales reported for
Q2FY20 was `1,656.32 crore, down by 19.73 per cent from
`2,063.42 crore in Q2FY19. PBT was reported at `51.25 crore
in Q2FY20, decreasing by 56.25 per cent from `117.04 crore in
Q2FY19. The company reported a net loss of `90.91 crore in
Q2FY20 as against a net profit of `79.51 crore for the same
quarter in the previous fiscal year. This decrease in net profit
was largely on account of deferred tax since migrating to the
new tax regime. On the annual front, the net sales grew by
16.83 per cent to `9,806.38 crore in FY19 from `8,393.87 crore
in FY18. PBT decreased by 2.63 per cent to `568.9 crore in
FY19 from `584.24 crore in the previous fiscal year. Similarly,
net profit decreased by 1.03 per cent to `391.63 crore, from
`395.72 crore in FY18.
NBCC enjoys a strong order book position with a consolidated
order book of around 8,000 crore as of Q2FY20. The company
has also signed a MoU with the Andhra Pradesh government.
As per this, NBCC would sell land parcels in 30 districts on
behalf of the AP government and conduct infrastructure work
and monetisation of the land. With regards to its Amrapali
project, the Supreme Court as given the company the approval
for tenders worth `700 crore for the completion of 1,000
houses. On the basis of its strong order book and improving
order execution, the immediate outlook for the company looks
positive. Thus, we recommend a HOLD.
DSIJ.in
 THOMAS COOK
I hold 200 shares of Thomas Cook purchased at an
average price of `200. I am worried as its price has
suddenly come down to `65 last week. What should
I do? Please advice. - Meenakshi Gaur
HOLD
BSE/NSE Code 500413 / THOMASCOOK
Face Value `1
CMP `64.10
52-Week High `118.20 / Low `51.54
Your Current (67.95 per cent)
Profit/(Loss)
T U
homas Cook India (TCIL) is a company that provides
travel and travel related financial services. The services of
the company include foreign exchange, corporate travel,
insurance, passport services, gift cards, hotel bookings, flight
ticket bookings, tour packages and electronic business. The
company provides various insurance plans which include
overseas travel insurance, Asia travel insurance, senior citizen
travel insurance and student travel insurance.
On a consolidated quarterly basis, net sales were reported at
`1,700 crore in Q2FY20, an increase of 6.26 per cent over
`1,599.88 reported in Q2FY19. The company incurred an
operating loss of `3.42 crore in Q2FY20 similar to an operating
loss incurred of `11.86 crore in Q2FY19. Net profit reported for
Q2FY20 was `4.26 as against a net loss of `6.24 crore in
Q2FY19.
On an annual front, the company saw a decrease in net sales of
41.30 per cent in FY19 to `6,603.25 crore from `11,248.34 crore
in FY18. PBT fell by 98.19 per cent to `110.28 crore from
`6,090.83 crore in FY18. However, this drastic decrease was
mostly on account of an exceptional item amounting to
`5,826.56 crore (sale of stake in subsidiary), realised in the
previous fiscal year. Similarly, net profit fell by 98.55 per cent to
`88.83 crore in FY19 from `6,131.39 crore in FY18.
The collapse of the 178-year-old holiday major, Thomas Cook
(UK), led many to believe that TCIL was related to the UK-
based giant. However, TCIL has been a separate entity since
2012, since it was acquired by Fairfax Financial Holdings. Due
to this misconception, TCIL’s shares were affected despite the
company’s clarifications to the exchanges. TCIL’s revenue was
affected in the current fiscal year due to political unrest and
uncertainty in Hong Kong, haze and heat across Singapore and
Malaysian peninsula and poor-economic sentiment across
Europe due to Brexit. However, we can expect recovery as these
issues are resolved. Thus, we recommend a HOLD.
DSIJ.in
UJJIVAN SMALL FINANCE BANK
I bought 1,000 shares of Ujjivan Small Finance Bank
at `62 per share. Should I hold it? What will be the
future of this share?
 - Sreejesh A R
HOLD
BSE/NSE Code 542904 / UJJIVANSFB
Face Value `10
CMP `53.10
52-Week High `62.80 / Low `51.15
Your Current (14.35 per cent)
Profit/(Loss)
jjivan Small Finance Bank (USFB) is a small finance
bank which is promoted by Ujjivan Financial Services
(UFSL), an NBFC that began operations in 2005. UFSL,
after obtaining final approval from RBI on November 11, 2016,
to establish and carry on business as a small finance bank,
transferred its business undertaking, comprising of its lending
and financing business to USFB, which commenced its opera-
tions from February 1, 2017. USFB entered the capital market
with its Initial Public Offering (IPO). The IPO consists of a fresh
issue, aggregating up to `750 crore. By the end of FY19, USFB
spread across 24 states and union territories.
The gross loan book of the bank has surged from `6,383.98 crore
at the end of March 2017 to `11,048.59 crore at the end of March
2019 and doubled to `12,863.65 crore at the end of September
2019, showing a CAGR of 32 per cent. The growth was derived
from affordable housing loans and MSE, which grew at a CAGR
of 190 per cent and 224 per cent, respectively. The deposits base
has also increased from `206.41 crore, ending March 2017, to
`7,379.44, ending March 2019, and `10,129.85 crore, ending
September 2019. The share of retail deposits has increased from
3.15 per cent, ending March 2017, to 41.93 per cent, ending
September 2019. CASA to total deposits ratio has improved from
1.57 per cent, ending March 2017, to 10.63 per cent, ending
March 2019, and was 11.87 per cent, ending September 2019.
The bank has posted a net profit of `6.86 crore in FY2018 and
`199.22 crore in FY2019, while net profit stood at `187.11 crore
for H1 of FY 2020.The bank has a healthy capital adequacy ratio
of 18.84 per cent with a Tier I capital ratio of 18.16 per cent end
September 2019.
Its CASA profile remains low at about 12 per cent (9 per cent of
AUM) when compared against its peers’ range of 20-35 per cent
(12-25 per cent of AUM), mainly due to its early-stage strategy
focusing on MFI customers for liability. The bank has gradually
diversified into other products. Hence we recommend a HOLD.
(Closing price as of Jan 01, 2020)
JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 85
Reviews
In this edition, we have reviewed Bandhan Bank and Filatex India Limited. We suggest our reader-investors
to HOLD in Bandhan Bank and Filatex India Limited.

Change
BANDHAN BANK HOLD 9.55 Per Cent
CMP - `502.85

BSE CODE Reco. Price Face Value

541153 `556 `10

W
e had previously
recommended Bandhan Bank
in Volume 34, Issue No. 02,
dated December 24, 2018 – January 06,
2019 under the ‘Choice Scrip’ segment.
The stock was then trading at `556 and
was recommended based on its strong
balance sheet and increase in market
share in micro loans. Bandhan Bank
Limited is a commercial bank, which
offers a range of assets, liability products
and services designed for micro-banking,
general banking as well as other banking
products and services.
The net interest earned by the bank in
Q2FY20 grew by 67.55 per cent to
`2,692.27 crore from `1,605.27 crore in
Q2FY19. The total income in Q2FY20
was `3,050.55 crore, an increase of 66.14
per cent from `1,836.08 crore in
Q2FY19. For Q2FY20, the net profit
stood at `971.80 crore as compared to a
net profit of `487.65 crore in Q2FY19.
The GNPA ratio was 1.76 per cent and
1.29 per cent for Q2FY20 and Q2FY19,
respectively, while the CRAR ratio was
25.09 per cent and 32.59 per cent in
Q2FY20 and Q2FY19, respectively.
On the annual front, the net interest
earned by the bank in FY19 increased by
38.35 per cent to `6,644.05 crore from
`4,802.30 crore in FY18. The total
income earned by the bank in FY19 was
`7,707.10 crore, an increase of 39.91 per
cent from `5,508.48 crore earned in the
previous fiscal year. The net profit
increased by 45.03 per cent to
`1,957.50 crore in FY19 from `1,345.56
crore gained in FY18. The GNPA ratio
was 2.04 per cent and 1.25 per cent for
Q2FY20 and Q2FY19, respectively,
while the CRAR ratio was 29.20 per
cent and 31.48 per cent in FY19 and
FY18, respectively. Potential synergies
from the bank’s merger with Gruh
Finance will aid the bank’s growth.
Hence, we recommend a HOLD.

Change
FILATEX INDIA LIMITED HOLD 34.83 Per Cent
CMP - `40.40

BSE CODE Reco. Price Face Value

526227 `62 `2

W
e had previously
recommended Filatex India
Limited in Volume 34, Issue
No. 2, dated December 24, 2018 -
January 06, 2019, under the ‘Low Scrip’
segment. The stock was then trading at
`62 and was recommended based on the
company’s diversified product portfolio,
low operating cost and integrated
operations. Filatex India is engaged in
the manufacturing and trading of
synthetic yarn and textiles. It
manufactures polyester and
polypropylene multifilament yarn and
polyester chips.
On the quarterly front on standalone
in Q2FY19. The PBT reported for
Q2FY20 was `33.08 crore, up by 7.51 per
cent from `30.77 crore in Q2FY19. In
Q2FY20, the net profit also increased
significantly to `61.84 crore from
`20.25 crore, reported in Q2FY19 due to
an increase in the deferred tax.
On the annual front, the net sales in FY18.
increased by 45.56 per cent to
`2,874.09 crore in FY19 from `1,974.45 The company’s plan to increase the Draw
crore reported in the previous fiscal year. Texturised Yarn (DTY) capacity is
The PBT stood at `131.1 crore in FY19, underway and is set to commence by
thus increasing by 41.45 per cent as April 2020. It intends to set up a captive
compared to `92.67 crore reported in plant in Dahej (Gujarat) to reduce energy
FY18. cost; the work for which is proposed to
begin in Q3FY20. Hence, we DS

basis, the net sales fell by 5.30 per cent to The net profit grew by 42.24 per cent to recommend a HOLD.
`680.23 crore in Q2FY20 from `718.33 `84.97 crore in FY19 from `59.74 crore (* Closing price as of Jan 01, 2020)

86 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020 DSIJ.in

DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 87
Kerbside
The recommendations provided in this column are taken from various market
sources such as brokers, analysts, dealers and investment strategists, etc. These
recommendations may not be backed by strong fundamentals. Therefore we advise
readers to use their own discretion before investing in these recommendation
ANALYST RECOMMENDATION VOLUME SPIKE
This stock is
Persistent Systems being
BSE Code: 533179 recommended
CMP: `705.60 by one of the
top analyst of
a leading broking firm of the
country. Analyst expects that the
stock is likely to witness a
northward movement in the
coming days as the price structure
and technical parameters are in
favour of the counter. Additionally,
one of the Mutual Funds has
increased its stake in the company.
Hence, this stock deserves a place
in every portfolio.
88 DALAL STREET INVESTMENT JOURNAL I JAN 06 - 19, 2020
BRIGHT PROSPECT
Security & IntelligenceSecurity & Intelligence Services (SIS) is
Services a leading security services company in
BSE Code: 540673 India and Australia with leadership
CMP: `967.35 positions in cash logistics and facility
management services. The SIS group
has expanded its footprint not just across Indian states, but
also across a widespread network in Australia. The market of
Indian Facilities Management Services is estimated at Rs
58,500 crore and is slated to grow at a CAGR of 25 per cent,
much higher than the global trend. SIS with leadership position
in facility management is likely to get benefitted with the
growing demand. The prospect of stock looks bright, hence,
one can buy this stock.
ESAB India
ESAB is a
world leader
BSE Code: 500133 in the
CMP: `1319.50 production of
welding and
cutting
equipment and consumables. In
recent times, the stock has
witnessed a spike in the volume and
if sources are to believe, some
favourable announcement is likely
to be seen in the coming days. In the
anticipation of this favourable
announcement, smart investors
have started taking position in this
stock. Traders and Investors with
risk appetite can initiate a long position for a decent up move in the
stock price.
GOOD YIELDS
Brokerage Motilal Oswal Financial
Motilal Oswal Financial Services is a good story which can be
Services taken as a trading bet as well as a
BSE Code: 532892 medium to long-term play. The
CMP: `817.55 company’s focus on the high-profit
asset management and wealth
management business and the full-fledged broking service
business offer a good prospect for traders and investors. Also,
as per our sources in the coming quarter, the stock is expected
to deliver good results and HNIs, as some of the well-known
investors have already started accumulating this stock. The
stock is poised for an up move in the coming days. DS
(Closing price as of Jan 01, 2020)
DSIJ.in
DSIJ.in JAN 06 - 19, 2020 I DALAL STREET INVESTMENT JOURNAL 89
90 DALAL STREET INVESTMENT JOURNAL I JAN
DEC 26,
06 -2016
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- JAN 8, 2017 DSIJ.in
 MF Page - 01

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Time To Prioritise Best ELSS

Saving taxes is in itself quite a complicated exercise. ELSS is a

Your Financial Health good option, however, choosing a right ELSS further adds to
its complexity. But thanks to your cover story 'Top 5 ELSS

A
Mutual Funds'. This has helped me in choosing the right ELSS.
s the clock ticks down and you usher a new - Sujit Ghosh
decade, many of you are focussed on making
2020 better than 2019. Nonetheless, losing Editor Responds : Thank you for appreciating our story. ELSS
weight, stop smoking, better fitness, takes the top remains one of the best options under section 80C of Income Tax
priority while taking care of your financial health may take a Act. It scores on various fronts compared to other investment
backseat. However, if you focus on getting yourself
options under the same section. Nevertheless, you should never
financially healthy as a New Year’s resolution, it will not only
pay off in the year 2020 but even beyond that. wait for the last quarter of a financial year to start investing;
instead, it should be a throughout-the-year exercise.
Clearly, resolutions help move you closer to your goals. But
simply making resolutions might not be enough. Shaping up

Content
your finances has a similar challenge as any other New Year
resolution. Some of the research shows that people fail to
keep up their New Year resolution even till the end of
January and by the start of the February, New Year
resolutions become a distant memory.

Our cover story this time will help you to make your new
year far better than the year gone by, in terms of your
personal finance. It lists down some of the basic steps that
you should do in 2020 that will help you in making your Cover Story MF Page
2
finances much better. It is important to make it as a habit and
continue throughout the year. New Year Financial Resolutions
Retirement planning happens to be one of the most
important financial goals, which is being ignored by many
for various reasons. One of our special reports in this issue
has delved deep into the subject of retirement. It goes beyond
Financial Planning MF Page
7
retirement planning and talks about how much you should
withdraw from your retirement fund, so that you can outlive
your retirement corpus and not the other way round.
Special Report
Making financial resolution is one of the best means to
achieve financial success. It is not a destination but a journey Withdrawal Strategy
MF Page
08
and you should always be aware of that. Whether you keep a Post Retirement
journal or hire a financial planner, make sure that you make
better decisions next year.

SHASHIKANT
Expert Speak MF Page
11
DSIJ.in DEC 26, 2016
JAN 06
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2017 I DALAL STREET INVESTMENT JOURNAL 91
Cover Story
A
s we enter into yet another New Year, our
social media feeds would again be full of New
Year challenges and resolutions. Even the
fitness clubs would see a sudden hike in their
membership numbers. As the New Year
approaches, we do make a set of rules and
targets to achieve in the coming year, and make it a better year
than the year gone by. Although, we do it for our health and
lifestyle, it is also crucial to include your personal finances in
your new year's resolutions. The New Year is a good time to
review your financial situation, your personal budget and make
plans for the next year.
You can start this with the review of your spending trend in the
year 2019. What will help you in this, is your year-end financial
statements, such as the annual bank statements, 12-month
credit card summaries, etc. that will help you to figure out your
spending pattern. You can also take an appointment of your
financial advisor to review what worked in terms of your
financial and investment plan in the year 2019 and make
changes, if any, for the year ahead. If you don't have any
financial advisor, then finding a good financial advisor should
be one of your main New Year resolutions (if your pocket suits
you), since the days heading towards the New Year's Eve are
92 DALAL STREET INVESTMENT JOURNAL I JAN
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06 -2016
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MF page - 02
often spent on thinking about the things that happened in the
year gone by, and making resolutions for the next year. The
start of the year should be spent on writing down the
resolutions, or rather, making it a commitment.
To help you in making your finances in 2020 much better than
the year 2019, we are hereby listing out some of the basic things
that you should adhere to in 2020. If you follow these things
religiously then, it will make a big difference in your finances
and financial situation at the end of 2020.
Track your budget
This is one of the most basic things to start with. It has been
observed that most of the financial blunders happen due to
inefficient budgeting or in some cases, due to no budgeting at
all. So this year, make a resolution that you will have a budget in
place and thereby, follow it in a disciplined manner. However,
to make a proper budget, you need to know all the sources of
your income as well as expenses. Hence, start tracking down
your income as well as the spending. There are tons of mobile
apps available in the market which would help you to auto-
track the spending by reading your bank messages on every
transaction. Nevertheless, those who are concerned about their
privacy then, nothing is better than tracking it on your own in a
DSIJ.in
DSIJ.in DEC 26, 2016
JAN 06
- JAN
- 19,
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2017 I DALAL STREET INVESTMENT JOURNAL 93
Cover Story
disciplined way with the help of a spreadsheet (MS Excel,
Google sheet etc).
Using spread sheet, you can maintain your
budget in a more sophisticated way and
can also do your analysis to understand
various aspects of your budget. If you are
not well-versed with the spreadsheet, then
you can download any readymade
spreadsheet templates from the web which
would help you in maintaining your
budget.
Change your money habits
A habit makes and breaks a character. Similarly, money habits
either makes or breaks your financial character. So, it is
important to inculcate good money habits and get rid of those
that are deteriorating your wealth. Now you might think that
what do bad money habits include? Some of the common
examples are unnecessary use of credit cards, splurging on pets,
availing personal loan for going on a vacation, not maintaining
a budget, etc. So, this New Year take a resolution of inculcating
good money habits and avoid bad money habits which often
acts like a slow poison that will kill your financial happiness.
Avoid these bad money habits
 Making late payments. Means making Have a debt pay-off goal
payments on your bills post due date.
 Rolling over your credit card debt.
 Carrying a dozen of credit cards. At the most, is understandable. Apart from this, there is no need of debt at
having 2 credit cards is more than enough.
 Spending haphazardly without having a would wish to pay off this year. You also need to understand
proper budget in place.
 Paying for subscriptions like newspaper, video or child's higher education, medical emergency, buying a first
audio streaming services, etc. that you do not use desires. Say for instance, taking a loan for a vacation, excessive
frequently.
 Ignoring savings for retirement.
 Living paycheck to paycheck.
 Not building an emergency corpus.
 Only saving your surplus rather than investing.
 Not reviewing investments periodically. On have emergency fund at the first place. This is because when
the contrary, reviewing investments too often.
 Considering insurance as tax-saving instrument.
94 DALAL STREET INVESTMENT JOURNAL I JAN
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MF page - 04
Automate your finances
As a human being, we have a tendency to forget. Nonetheless,
we regret forgetting some of them not just personally but also
financially. So, in such a case, one can automate things right
from the payment of electricity bill to even SIP (Systematic
Investment Plan) investments towards your financial goals.
Today, there are a lot of Fintech companies that have
introduced their apps, which not only helps you to track your
expenses but also, help you to invest in mutual funds via the
same app. This has added to the convenience of the investor.
Automating your investments would help you to regret less on
any delayed or no payment. It will help you to sort out your
different payments which in turn, will help you to achieve your
desired financial goals.
Evaluate financial mistake from the year 2019
Mistakes are a part of our lives, no matter how perfect one tries
to be. One of the best examples is buying insurance policies that
you believe also acts as an investment. Though many a times, it
is being sold as an investment; you should remain alert and
stop mixing both. As it is rightly said, learn from the mistakes.
Hence, before moving further towards finalising your
resolutions for the New Year 2020, it is important to first
evaluate the financial mistakes that you have done in the
previous year. This will help you to avoid them in future. Not
just mistakes but also look at the things that you tried hard and
then set it as a benchmark and try to do better than that.
This is one such goal that would help you achieve other
financial goals. Debt is something that no one would like to
carry as a burden as it is like a 'Damocles Sword', which might
harm you anytime. Taking a debt in case of the utmost
emergency or for things like buying your first car or first home
all. All you need is just a proper financial planning. Hence, as a
resolution of 2020, try to set a figure (debt amount) that you
that there is a difference between a good loan and a bad loan.
Good loan is something that you take for some needs such as
home, etc. Bad loans are those that you take for fulfilling your
use of credit card to buy latest gadget, etc. Good loans usually
cost you less as they carry low interest rates when compared to
the bad loans and they are tax efficient. It is always wise to pay
off high interest-bearing debt as quickly as possible as it is
eating your surplus which can be put to more productive use.
Have emergency fund in place
Planning for emergencies often help you to overcome the cash
crunch at the time of income loss. There is a valid reason to
there is a loss of income, there are various mandatory expenses
that you need to incur which also include your EMIs. Having
an emergency fund in place will help you to keep the
DSIJ.in

investments safe, which you have made towards achieving your
financial needs, such as child's education, retirement, etc. Not
just that, but it also helps to ensure your Systematic Investment
Plan (SIP) commitment towards those goals to continue
further. So, this new year, build an emergency fund. If you
already have one, then ensure to review it.
How to calculate and build an emergency fund?
The emergency fund should include all the fixed expenses
which are mandatory on your part to incur. Expenses such as
rent, groceries, school fees, etc. which are mandatory in
nature and must be included in the emergency fund
calculation. On top of that, you must also include the
insurance premiums that you pay and the EMIs.
Next, you need to know how many months of expenses you
need to keep as the emergency fund. This usually depends
on the occupation that you are into. Why occupation? It's
because every occupation has a different level of job
security. For instance, if you are a government employee,
then the job security is high and you may only need to keep
3 months of your expenses in the emergency fund. However,
if you are someone in the sales job where there are high
chances of job loss, then you need to have as high as 9
months of expenses in the emergency fund.
Once you understand the number of months of expenses to
keep for the emergency fund, the next step would be to first,
add the fixed expenses and EMIs then, multiply by the
number of months. After this, add the insurance premiums
to the result amount. The reason behind adding the
insurance premiums later is that insurance premiums are
usually paid annually.
Now it's time to build the emergency. Let's assume that you
have to keep six months of your expenses in the emergency
fund. Of that, it is prudent to keep one month of expenses in
your savings bank account, 15 days of expenses as cash at
home and remaining to be parked equally in liquid funds
and ultra-short duration funds. The reason for keeping 15
days of expenses in cash is that, if there is an emergency
case and you are not able to access the ATM, then you should
have enough cash to bear the daily expenses until the ATM
becomes accessible. This issue may arise due to flood-like
conditions, where ATM is not assessable for many to
withdraw cash. At such times, having cash helps you to get
the daily needs.
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Identify and set your financial goals
To attain a complete financial freedom, it is important to first
identify and set your financial goals. Before doing so, it is
important to understand that not all goals are financial goals. A
goal can be termed as financial goal only when it can be
measured in monetary terms it is reasonable, can be achieved
and has tenure. Say for instance, 'buying a car' is a goal.
However, 'buying a car worth `7 lakh in 3 years' is a financial
goal. Not just that, you should also further segregate your
financial goals between your 'needs' and 'wants'. Child's
education, child's marriage, retirement, etc. are the examples of
financial goals that can be categorised as 'need'. However, going
to an international vacation, buying a farm house, owning a
luxurious car, etc. are the examples of 'wants'. So, this new year,
not just identify and set financial goals but also divide them
between needs and wants.
Needs Wants
Want is something which an individual
Need is an individual's basic requirement
desire to have with him/her. Though it is
that he/she needs for his/her survival.
not something that one needs to survive.
Needs are often limited. Wants can be unlimited.
Needs are something which is mandatory Wants are something which are
on your part to fulfil. discretionary in nature.
It is not possible to defer your needs to
Wants can be deferred to any future date.
any future date.
Wants are something that may change
Needs often remain constant over time.
over time.
The impact of non-fulfilment of needs may The impact of non-fulfilment of wants may
bring crisis in your life. only bring a little disappointment.
Examples of wants are discretionary
Examples of 'needs' are your fixed
expenses that you may need to incur in
expenses that you may need to either
enjoy your life or uplift your standard of
order to survive, like your child's
living, upgrading your car, upgrading
education, medical expenses, etc.
mobile phones every now and then, etc.
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Cover Story MF page - 06

Ensure rebalancing of your portfolio behalf. For instance, you cannot self-treat your illness; you need
Most of the people show enthusiasm while investing and also to go to a Doctor for that. Similarly, in the case of personal
dream of making a good amount of money. However, they just finance, hiring a financial advisor makes more sense. He will not
invest and leave it as it is, when it is recommended to rebalance just help you with his expertise but would also, guide you
it periodically, usually every year. Rebalancing your portfolio towards the right financial path. If you can afford, it is always
helps you to maintain your asset allocation strategy and also better to hire a fee-only financial planner. He is someone who is
tries to de-risk your portfolio. Technically, it accumulates those virtually free from any conflict of interest and advises you, on
assets which are not in favour now and book some profits in what is good for you. He will not just look at your financial goals
assets that were in favour. The following instance would make but also advises you on your cashflows, debt, risk management,
you understand as to why rebalancing is necessary. taxes, etc. So, this new year, make a commitment to yourself of
hiring a financial advisor.
Without Re-Balancing
S&P BSE 10Y
Year Sensex
Sov. Bond Idx
Gold End Value Guidelines for hiring a Financial Advisor
2010 70458.56 31042.82 12758.62 1,14,260.01
2011 53095.06 31825.45 18206.9 1,03,127.41
Do check whether the financial advisor is well-qualified
2012 66740.07 35236.48 21413.79 1,23,390.34 and holds a Certified Financial Planner CM certification.
2013 72731.44 35120.61 20413.79 1,28,265.85
2014 94473.7 40075.55 19315.17 1,53,864.42 Ask for the services that he provides and go in details of
2015 89726.28 42982.45 18168.28 1,50,877.00 each services to understand what you can actually expect
2016 91474.66 49137.76 19740.69 1,60,353.11
2017 1,17,001.55 48825.72 20460 1,86,287.27
from him.
2018 1,23,912.02 52082.26 21681.38 1,97,675.65
2019 1,42,773.62 56338.93 27041.38 2,26,153.94
Understanding the fee structure would help you to know
how much you would be paying. Do go deep and ask how
With Re-Balancing much you need to pay on your investments.
Year Sensex S&P BSE 10Y Gold End Value It is always prudent to trust a financial advisor who is
Sov. Bond Idx
2010 70458.56 31042.82 12758.62 1,14,260.01 regulated by the government. Go for the ones who are
2011 51661.36 35142.19 16305.21 1,03,108.77 registered under SEBI (Securities and Exchange Board of
2012 77764.13 34247.97 12127 1,24,139.10
2013 81169.97 37119.27 11834.19 1,30,123.43
India).
2014 1,01,413.43 44544.51 12312.05 1,58,270.00
2015 90190.04 50925.05 14887.22 1,56,002.32
Do ask the financial advisor for some sample reports, as
2016 95425.28 53502.79 16950.39 1,65,878.47 this will help you gauge his work.
2017 1,27,301.07 49447.53 17192.27 1,93,940.87
2018 1,23,237.37 62062.86 20551.84 2,05,852.06
2019 1,42,311.84 66802.89 25674.21 2,34,788.95 Conclusion
The above paragraphs clearly make you understand as to what
In the above table, we have assumed that you that are in the are the financial resolutions that you should make this year.
start of the year 2009, where you have invested `1 lakh. Out of Every new start does require an effort and patience to see its
this, in Sensex (Equity), you invested `60,000, in S&P BSE 10 results. So, do not get demotivated if something is not working as
Year Sovereign Bond Index (Debt) you invested `30,000 and in desired, despite putting all the efforts. Those things would surely
Gold, you had invested `10,000. So, as we can see from the reap you benefits in the long-run.
above table, the portfolio that was not rebalanced, ended-up
fetching you `2.26 lakh at the end of 2019, whereas the If you think you need that extra push to get things done, you can
rebalanced portfolio fetched you `2.35 lakh. You might feel think about hiring a competent financial advisor, who will help
that the difference is of mere 4 per cent. But it has helped you you in not only fixing your personal finances but also, would
to invest with a peace of mind and not worry about any guide you towards your financial freedom. The bottom-line is
volatility. Hence, there's no doubt that rebalancing your that you should make your New Year resolutions to sort out your
portfolio definitely prove out to be a better approach. finances in the year 2020. DS

Hire financial advisor

Not everyone is expert in every field. That's the reason we have
experts in various fields to take care of certain things on your

96 DALAL STREET INVESTMENT JOURNAL I JAN

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Financial Planning
Ambrish Agarwal
Director
Eastern Financiers Limited
Credit Risk Funds - Capitalising
on the Elevated Credit Spreads
O
ver the past year and a half, the liquidity concerns in
the financial sector, especially within the NBFCs
and HFCs, have pushed the credit spreads higher
across the credit ratings. While the concerns are
slowly receding, the credit spreads have continued to remain
elevated at higher levels across different credit ratings.
Higher Credit Risk, Higher Yields
Credit risk refers to the probability of an event where the
company might not service the principal and interest
obligations on time. The investors gauge the credit risk related
to the debt securities through credit ratings ranging from AAA
to D, wherein AAA reflects the highest level of safety
concerning the fulfilment of the debt obligations by the issuing
company.
As the level of credit risk reflected by credit rating increases, the
investors tend to expect fair compensation for the higher credit
risk, which is reflected by higher credit spreads. As such, an
AA-rated bond will generally be issued at a higher coupon rate
than an AAA-rated bond. As at the end of November 2019, the
credit spreads for AAA-rated 10-year bond is 0.60 per cent, as
against 3.06 per cent for a 10-year bond with credit rating A-
(Source – CRISIL). As such, debt funds, especially the credit
risk funds, have indeed emerged as an exciting investment
option with a potential for a higher tax-efficient and stable
returns.
Credit Risk Funds – a Targeted Debt Fund
Category capitalising on Varied Credit Risks
Credit Risk Funds are a special category of debt funds, which
aim to capitalise on the higher credit spreads on securities with
The writer is a Director, Eastern Financiers Limited n Email id : ambrish@easternfin.com n Website link : www.easternfin.com
DSIJ.in
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lower credit ratings. Such funds invest at least 65 per cent in
debt securities with a credit rating lower than the AAA credit
rating. In other words, such funds invest predominantly in AA
or below rated securities. Thus, credit risk funds allow the
investors to generate better returns than the market’s fairly
price, lower-rated securities with higher credit spreads.
Credit risk funds aim to generate returns primarily through
accrual income and by investing with the right time horizon.
Since the focus is not on specific events for generating returns,
the macro event-specific impact is generally low. As such,
credit risk funds aim to serve as an all-weather fund for the
investment portfolios. The investors may also be further
benefited by the returns getting topped up on account of
potential rating upgrades and consequently, reduced credit
spreads resulting in price appreciation.
Mitigation of Investment Risk
While the investment in lower-rated securities may attract a
word of caution for the investors, the higher credit risk is
generally mitigated by the fund managers after adequate
research and portfolio monitoring. Maintaining a well-
diversified portfolio with varying credit ratings and different
durations can be another way adopted by the fund managers to
mitigate the credit risk to some extent. Many fund houses also
set an internal limit for the single issuer and group exposures to
reduce the concentration risk on such funds.
Debt markets are also peculiar in terms of liquidity risk
associated with the redemption of the debt securities. While a
bond may be sufficiently liquid when the times are right, the
liquidity for such a bond may quickly dry up. As such, it may
get difficult for the investors to sell such holdings in the market
at a fair price if the ratings are downgraded. To manage the
liquidity risk, the credit risk funds may adopt a strategy to have
adequate exposure to high-quality papers to cater to sudden
redemption pressures.
Generating Tax Efficient Returns
The taxpayers are eligible for special tax rates on long-term
capital gains from debt funds, including credit risk funds, and
such tax efficiency makes these funds more attractive for the
investors. As per the provisions of the Income tax laws (as
amended upto Union Budget 2019), the investors must pay tax
at 20 per cent after availing the benefit of indexation instead of
regular tax rates applicable to the individual, if the investment
has been held for 3 years or more.
As such, the investors with moderate risk appetite may
consider investing in Credit Risk Funds to capitalise on the
present high yields in the debt markets, further helped with the
potential of capital appreciation, as and when higher credit
spreads steadily moderate.
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Special Report
Withdrawal Strategy
Post Retirement
F
or most of you, the difference between going for an
international vacation or looking for a local and
cheap outing in your retirement will totally depend
upon how soon you start saving. It is not the ‘timing’
that is more important while investing in any of your
financial goals, but it is actually the ‘time’ that you give to the
investment. Compounding, which according to the great Albert
Einstein is the eighth wonder of the world, plays a major role in
making your investment grow.
Therefore, if you think that you are quite young to worry about
the retirement, think again and look around, you may find
people who have insufficient amount for savings and are instead
cutting corners to meet their ends. Therefore, undoubtedly,
retirement planning should be your utmost financial goal. In
India, many of you believe that your children will take care of
you in your golden days. You should be clear that your children
are not your retirement fund. It will be a mistake to assume that
they will share your retirement burden. Hence, start saving now
and let your hard-earned money work harder for you.
The importance of the retirement planning is becoming even
more significant with the advancement of the medical field,
which is leading to an increased average life of an individual.
Hence, the earlier you know the amount you need at your
retirement, the less painful transition you will experience in
your golden years. It will help you in amassing enough
corpuses, so that you outlive your savings instead of the other
way round. More importantly, many of us are employed in a
private sector, which means you do not have choice for a
98 DALAL STREET INVESTMENT JOURNAL I JAN
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state-sponsored pension. This means you are on your own
when you are retired and hence, it is in your hand to design an
achievable path for your retirement fund.
What is the ideal amount you should withdraw
after retirement?
After understanding the importance of planning for the
retirement, carefully work towards creating your retirement
corpus based on the various assumptions and enjoy sitting at
the desired corpus at the time of your retirement.
Thankfully, now that you are sitting at the desired corpus, the
next question would be as to how much you should withdraw
every year from your corpus, so that you do not outlive your
retirement corpus.
Conventional wisdom says you can take 4 per cent from your
savings the first year of retirement, and then that amount plus
the amount of inflation for each year, without running out of
money for at least 3 decades. The idea of 4 per cent rule dates
back to 1990s, when California-based financial planner named
William P. Bengen proposed it in 1994. According to this rule, if
they withdraw 4 per cent of their nest eggs the first year of
retirement and adjust that amount for inflation thereafter, their
money would last at least 30 years.
For example, if you retire with `2 crore in your portfolio. In
your first year of retirement, you withdraw `8 lakh. (`2 crore x
0.04 equals=`8 lakh.) The following year, you withdraw the
DSIJ.in
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same amount, adjusted for inflation. Assuming 4 per cent
inflation, you should withdraw `8.32 lakh (`8 lakh x 1.04
equals=`8.32 lakh).
Then, `8.32 lakh figure might be more than 4 per cent of your
remaining portfolio, depending upon how the markets
fluctuated during your first year of retirement. Don't worry
about that—you need to calculate 4 per cent only once.
total 5000 cases to explain as to what will happen if a retiree
withdraws at 4 per cent withdrawal rate from portfolio
constituted of only equity mutual funds. The black line shows
the amount remaining even after a retiree dies. Besides, there
are some cases where the retiree will have corpus in excess of
`3 crore even after his demise.

Sanctity of 4 per cent

Mark Twain observed, “All generalisations are false, including
this one!” The value of our investments and the amount we
spend every year, is much dynamic, often due to the forces
outside our control. Moreover, these studies are based on the
historical returns of the US market and the study was done
more than 25 years back.

The rest of the story will try to identify how much money you
can spend each year in the retirement plan with a backdrop of The following table shows the result of simulation in case of a
the Indian context, along with the latest historical returns of different withdrawal rate. The average outcome means, out of all
different asset classes. the simulated lives, on an average, a retiree will have that amount
in his retirement corpus. Similarly, minimum outcome shows
The Study the worst case scenario whereas; maximum outcome shows the
To arrive at an appropriate level of withdrawal from your best case scenario. Therefore, if equity market has a good run
retirement corpus, we assume different scenarios where you then, you might leave more than`3 crore for your heir.
have invested in different asset classes and at different
proportions. We have also assumed that you will use mutual Portfolio Equity
fund as an investment tool. Therefore, all the exposure to equity Withdrawal Rate 2.00% 4.00% 6.00%
will assume that you have invested in large-cap dedicated fund. Probability of running out of money 0.00% 6.00% 73.50%
Similarly, all the debt returns is calculated based on the Average outcome (`) 1,69,00,578 66,23,701 11,46,302
assumption that you have invested in long duration debt funds. Minimum outcome  (`) 50,58,569 0 0
For example, cash component of your retirement fund is
Maximum outcome  (`) 6,68,68,019 3,75,53,105 1,39,18,834
assumed to have been invested in liquid funds. The historical
returns are calculated for the period during 2004-2019. To
calculate inflation, we have taken Consumer Price Index (CPI) Scenario 2
of the same period. During some of this period, we had double
digit inflation, such as in year 2013. Invested only in debt : If a retiree is a conservative
investor and do not believe in taking any risks; in his retirement
Once these historical returns are calculated, we work on days, he will invest only in debt funds. These investments show
different scenarios where a retiree has parked his investment. lower volatility in returns and almost no negative returns in the
We also assume that the retiree will have a life span of at least 78 duration of 3 to 5 years. At a 4 per cent withdrawal rate in
years, if he retires at the age of 60. However, most likely, we will almost 13 per cent of the cases, you might outlive your
live till the age of 85 or maximum of 95 years. After that, we ran retirement corpus. Below, there is a graphical representation of
a Monte Carlo Simulation 5,000 times to check different the simulated lives.
scenarios. We have further assumed that your retirement
corpus is `20 lakh.

Scenario 1
Invested only in stocks: This type of retiree is an
aggressive investor and has other backups too. He will only
invest in large-cap dedicated equity mutual fund. So if he
withdraws 4 per cent from his retirement corpus every year, in
94 per cent of cases, he can easily manage with this withdrawal.

The following graph shows the simulation of 3,000 cases out of

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The following graph shows different withdrawal rate and the The following graph shows different withdrawal rate and the
related information. related information:

Portfolio Debt Portfolio 50 % Equity 50% Debt

Withdrawal Rate 2.00% 4.00% 6.00% Withdrawal Rate 2.00% 4.00% 6.00%
Probability of running out of money 0.00% 13.13% 93.60% Probability of running out of money 0.00% 0.00% 60.70%
Average outcome (`) 99,00,173 21,61,897 15128 Average outcome (`) 2,02,29,670 92,52,427 7,24,011
Minimum outcome  (`) 45,99,339 0 0 Minimum outcome  (`) 82,38,446 41,26,828 0
Maximum outcome  (`) 2,26,50,953 51,95,886 14,50,797 Maximum outcome  (`) 5,25,90,167 2,16,45,112 43,06,070

Scenario 3
Invested in combination of debt and equity:
If a retiree is a moderate risk taking investor, he invests in a mix
of debt and equity. We have assumed that 50 per cent of his
retirement corpus goes into equity and rest 50 per cent into
debt. This type of asset allocation will help you to contain the
loss that a pure equity investor had suffered in the year 2008
and 2011; however, it also limits the exponential gain of 2009
and 2014. Nevertheless, the aim of retiree is not the wealth
maximisation and hence, can choose this asset allocation. At a 4
per cent withdrawal rate, there is not a single chance where you
outlive your retirement corpus. Below, there is a graphical
representation of the simulated lives.
Conclusion
It is important for all of you to be clear that these success rates
are based on returns history of only 15 years, which may be a
very short period. These 15 years include some of the black
swan events such as the period of 2008 that saw value of equity
falling by more than 50 per cent in a year.
Moreover, going forward, there is very low likelihood that we
will see inflation in double digit which was the case in 3 out of
15 year period of our study period.
Nonetheless, we have tried to overcome this with simulation of
more than 1,000 times that covers most of the likely scenarios.

Hence, our study clearly shows that if you are a retiree with
good health 4 per cent withdrawal rate with investment in mix
of equity and debt, it will help you to live comfortably during
your retirement without the fear of outliving your retirement
corpus. In other cases, there is a little chance of outliving your
retirement corpus. DS

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 Expert Speak
Make Your Mutual Fund
Portfolio Ready For 2020
T
he year 2019 turned out to be a mixed bag for mutual
fund investors. Although the benchmark indices like
Nifty and Sensex touched new all-time highs, mid and
small-cap segments of the market underperformed
their large-cap counterparts. The extreme polarisation in the
market resulted in a wide variance in performance of funds
depending upon the level of exposure to different market caps
as well as the different investment philosophies and strategies.
The encouraging part was that investors following disciplined
approach of investing through SIP continued their process
despite disappointing returns from some of the funds in their
portfolios.
Clearly, these are challenging times for investors. Considering
the equity as an asset class which has a tendency of testing
patience and perseverance of investors from time to time, the
level of success that one can achieve depends upon how he or
she handles such difficult periods. The right way to ensure
success in the long-run is to keep focus on investment goals
and continue the investment process through defined time
horizons.
The start of a new year can be a good time to take stock of your
mutual fund portfolio as that helps in reaffirming faith in one’s
investment strategy and philosophy. Here is what you need to
do to keep your investments on track in 2020.
 Keep your faith in equity as an asset class. If polarisation in
the market made some of your quality funds underperform
in 2019, you should continue to remain invested as the
market is likely to be more broad-based in 2020, than it was
in 2019. However, it is always a good idea to have a mix of
well-diversified and focussed funds in the portfolio.
 During the first 8-9 months of 2019, Exchange-traded
Funds (ETFs) outperformed actively managed funds and
that made investors wonder whether it makes sense to
invest in those funds. However, as the market became
broad-based in the last 3 months, actively managed funds
started performing better. In a market like ours’, there is an
ample scope for fund managers to generate alpha for you by
DSIJ.in
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Hemant Rustagi
Chief Executive Officer, Wiseinvest Advisors
picking quality stocks outside the major indices. Hence,
actively managed funds should remain the core of your
portfolio in 2020.
 Although the performance of mid and small-cap funds
disappointed investors in 2019, it is important not to reduce
exposure to both these segments haphazardly as they have
the potential to improve the overall portfolio returns in the
long-run. There is no doubt that the exposure to these
segments should be in-line with your risk profile and time
horizon. If you have continued investing in these funds
through the challenging times in 2019, you would benefit
once the market stabilises and becomes broad-based.
 Managing allocation to the three segments of the market,
that is, large, mid and small-caps can be quite tricky for
investors. If you face this challenge, investing in multi-cap
funds can be a good strategy. There are a number of funds
in this category that are true to the label and manage
allocation to different segments of the market quite
effectively.
 Continuing investment in a disciplined manner through
difficult period helps you in turning volatility to your
advantage. If you have been investing in equity and
equity-oriented funds through SIP without a defined time
horizon, you must do so now as that will not only allow you
to tackle volatility more efficiently but also help you benefit
from the true potential of this wonderful asset class.
 ELSS, as a category, proved its worth as an effective option
to save taxes under Section 80 C even in a challenging year
like 2019. If you have not yet included ELSS in your tax
saving portfolio, you must do so in 2020. Remember, ELSS
can be the best option if you intend to begin investing in
equity funds. In fact, aligning investment into ELSS to your
long-term goals can contribute significantly to your wealth
creation process over the longer-term.
 International funds, especially those investing in the US,
Asian and emerging markets performed quite well in 2019
and set an example for some global diversification in the
portfolio. Those investors, who are experienced and have
built a reasonably large portfolio, should consider investing
5-10 per cent in international funds. DS
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101
MF Select
MF page - 12

BNP Paribas Substantial Equity Hybrid Fund - Direct Plan (Growth)

Hybrid: Aggressive Hybrid 18.02%
Scheme Category *Expected Return In Next One Year

CRISIL Hybrid 35 + 65
`340 Cr 13.49 0.88% Aggressive
Expense Ratio (%)
AUM (`Cr): 30 Nov., 2019 NAV (`) 26 Dec., 2019 30 Nov., 2019 Benchmark

For units in excess of 10% of the investment,1% will be Karthikraj Lakshmanan and Mayank Prakash
charged for redemption within 365 days
Exit Load Fund Manager
Reason for recommendation TOP 10 Holdings
The year 2020 may turn out to be a good year for investors in COMPANY NAME % TO NET ASSETS
terms of both, equity and debt. After couple of years of HDFC Bank 7.12
underperformance, the broader markets may be ready for gain in ICICI Bank 5.43
the upcoming year. Moreover, the unexpected move by RBI to Glaxosmithkline Con. Healthcare 2.99
correct the steepening of the yield curve through US Fed Reserve Reliance Industries 2.74
style ‘operation twist’ will lead to rally in the bond prices. In such Infosys 2.66
case, it makes sense to invest in a fund that invests in both equity Inox Leisure 2.64
and debt. State Bank of India 2.51
Ultratech Cement 2.43
Therefore, our pick for the fortnight is an aggressive fund, BNP
Paribas Substantial Equity Hybrid Fund. This fund has generated Axis Bank 2.39
a return of more than 16 per cent in the last one year, which is Bharti Airtel 2.21
better than its benchmark and category and even most of the
equity dedicated funds. As of November 30, the fund held 75 per Going ahead, the presence of some of the strong and large private
cent of its assets in equity, 13.1 per cent in cash, and rest in debt. sector banks, such as HDFC Bank and ICICI Bank, with higher
Even in equity, the fund has major exposure to large cap stocks. weightage in the portfolio, are likely to generate better returns for
What is good about this young fund is that it is holding 13 per the fund. Moreover, the normalisation of the yield curve will help
cent in cash, which it can easily deploy in equity, once the the debt portion of the fund to perform. Hence, this fund is better
opportunity is spotted. Even in its debt exposure, most of the fund suited for a moderate risk taking investor with investment
is invested in AAA-rated or AA-rated papers. horizon of at least three years.

Monthly Returns

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MF QueryBoard
MF page - 13

I am currently holding four savings bank accounts of which three
are the regular bank accounts (my previous salary accounts) and
one is current salary account. For the first three bank accounts, I
need to adhere to their minimum balance requirements. So, I wish
to know how to calculate the minimum balance and whether I
can utilise my savings into something productive like investing in
mutual funds.
 - Ravindra Krishnamurthy
maintain the minimum MAB requirement, which is unproduc-
tive. Rather, it is better to close those saving bank accounts and
park those funds in liquid mutual funds or ultra-short duration
funds. Here, you may lose some of the liquidity easiness of
savings bank, however, will earn better returns.
I am a 50 year's old IT professional and would be retiring from the
service in the next 10 years. Currently, I feel that my retirement is

A
s you might know, maintaining your bank account comes
at a cost. This is the reason that there is a need to maintain
a minimum average balance in your regular savings bank
account. Failing to do so attracts a penalty charge. This penalty is
going to cost me more than what I might have accumulated. Hence, I
have chances of outliving the assets I hold for my retirement. Thus,
kindly guide me so that I can make my retirement more affordable.
 - Kailash Bijlani

usually charged to recover the cost for the bank to run its
day-to-day operations.
Nevertheless, there is a zero-balance saving account available
with almost all the banks, wherein you are waived from main-
taining a minimum Monthly Average Balance (MAB). Even the
corporate savings account like yours' is a zero-balance savings
account with no requirement of maintaining the MAB. These
accounts come with basic banking features and do have more
transaction limits and charges when compared with regular
savings bank account. However, salary account is an exception to
the same. Being a regular savings account holder, MAB is taken
into account to calculate interest and penalty.
How to calculate MAB?
The MAB is calculated by dividing the sum of the daily closing
balance on your account by the number of days in a particular
month. Usually, MAB requirement is anywhere between `1,000
to `10,000 on a regular savings bank account. This is decided by
the banks depending up on the region where you stay. To
understand it better, let us take an example. Let's assume that the
MAB requirement is `10,000.
Total Days Closing Balance (`)
Days
(A) (B)
First 5 days of the month 5 5000
6th to 10th day 5 12000
11th to 20th day 10 7000
21st to 24th day 4 9000
25th to 31st day 7 15000
Total 31  
Your MAB would be: Total daily closing balance (`2,96,000)
divided by the total number of days (31). Hence, your MAB
comes to be `9,548.39. So, as per this illustration, you were not
able to maintain `10,000 MAB.
To be able to maintain the minimum requirement of MAB,
avoid having too many savings bank accounts. As in your case,
you have three regular accounts which are not at all needed. So,
it is advisable to close two out of three regular savings bank
accounts. Else, most of the cash would get parked in them just to
R
etirement is said to be probably the most expensive financial
goals. This is due to the inflation effect that leads to such a
huge cost of maintaining the current lifestyle. If one seeks to
upgrade it then, the cost would be enormous. So, to answer your
query, we have listed down some ways below to make your
retirement more affordable so that you can really feel your golden
years to be 'golden' enough.
Delay your retirement : The average age when a person retires is at
the age of 60. However, if you are at a stage now where your
retirement is not so far away, you may consider delaying your
retirement. The benefit of delaying your retirement for 5 to 10 years
would help you to have that added time to accumulate for your
retirement. Further, if you don't want to delay your retirement at all
and get rid of your job as soon as you turn 60, then consider having
a part-time job which would give you joy. Say for instance, if you
love music and are somewhat trained, then you can start teaching
people for a fee. This would not just help you to pursue your hobby
but also to earn something out of it.
Move from current city : For your work or job, currently, you
(A) x (B) might be staying in a metro city or the like. However, such cities do
burn your pockets a lot as compared to some of the smaller cities.
in (`)
25000 So, in such a case, to make your retirement a more affordable affair,
60000 consider switching to a comparatively smaller city. Say for instance,
70000 currently, you are staying in a metro city like Mumbai then
36000 consider moving to cities like Pune, Satara, etc. This will help you
1,05,000 to curtail your cost of living. Not just that, it would also help you to
2,96,000
maintain your health as you might get some fresh air with low
pollution and population as compared to metro cities.
Health : Health is one of the major expenses that might pop up
during retirement. Though we might be medically advanced, but
such things increase the complexity of treatment. This in turn,
leads to huge costs due to the risks involved. Even the medical
insurance is costly. So, it is always better to plan in advance for such
an emergency. Also, the most important thing is to take proper care
of your health, which would help you to have minimum medical
expenses. Not just that but taking care of your health would also
help you to be at peace not just physically but also mentally. DS

Readers are requested to send only one query at a time so that more readers get a chance. Have questions relating to any aspect of
personal finance. Ask DSIJ at editorial@DSIJ.in and get your queries resolved.

DSIJ.in DEC 26, 2016

JAN 06
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MF Data Bank
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With Ranking

T
he following table lists top-ranked equity funds based on
DSIJ's proprietary research methodology. We have
evaluated each funds underlying portfolio of stocks and
ranked them based on their expected portfolio returns. In a similar
way we calculated the risk of a fund based on its constituents. This
helps us to ‘rank’ and assign ‘risk’ to newly launched funds also.
We continuously evaluate equity funds based on the changed
ratings of their underlying stocks and the change in their prices.
Therefore, this list is quite dynamic and reflects the best possible
return potential of the funds for the next one year.
You can use this ranking to create your own mutual fund
portfolio. Depending on your risk profile, return expectations and
overall asset allocation, you can add the best performing fund
category to your portfolio. For clarity and to include more funds,
we have not included ‘Direct’ and ‘close-ended’ funds. You can visit
our website (www.dsij.in/mutual-fund) to check the entire list
along with equity-oriented hybrid and close-ended funds.
This ranking can also be used for reviewing different holdings
in your fund portfolio. Hence, a consistently laggard performer of a
category can be looked at as 'Switch' or 'Exit' advice.
Key To Databank
Category Rank: Category wise ranking as on Dec 26th 2019
Scheme Name: This is the name of the mutual fund scheme
NAV (`): Net asset value per unit of a mutual fund or an exchange-traded fund
(ETF) on a specific date
AUM (`Crore): This is the total market value of financial assets held by the mutual
fund scheme on a specific date.
Weightage: Large-Cap: This is a percentage of total assets held by a fund in the
large-cap stocks as defined by AMFI for the current period.
Mid-Cap: This is a percentage of total assets held by a fund in mid-cap stocks as
defined by AMFI for the current period.
Small-Cap: This is a percentage of total assets held by a fund in small-cap stocks as
defined by AMFI for the current period.
Total No of Companies: This is a total number of securities held by a mutual fund
scheme at the end of a specific month.
Expenses Ratio: This is the latest expense ratio disclosed by the mutual fund scheme
Return_1Years: This is the past one-year return given by the scheme.
Expected 1-yr return: This is based on our analysis of the portfolio of mutual fund
scheme and their expected growth in the next one year, assuming the underlying
remains the same.
Current Rank: Rank as on Dec 26th 2019
Previous Rank of Dec 16th 2019 is shown under bracket ()
Risk : Risk as on Dec 26th 2019

Expense Return 1Expected

Category Weightage (%) DSIJ Current
NAV AUM No of
Scheme Name Companies Ratio (%) 1 Years yr return Rank Risk
Rank (`) (` Cr)
Large Cap Mid Cap Small Cap (%) (%) (26 Dec 19)
Equity - Large Cap#N/A
1 Tata Large Cap Fund - Reg. Plan 231.74 816 92.12 6.03 1.29 26 2.47 14.12 24.59 19 () Moderate
2 HDFC Top 100 Fund - Reg. Plan 499.31 18,748 92.42 7.08 0.00 53 1.73 9.61 17.76 84 (53) Moderately High
3 Mahindra Pragati Bluechip Yojana 10.83 97 83.99 10.35 0.00 26 2.67 ** 14.80 153 (130) Moderately Low
4 Aditya Birla Sun Life Frontline Equity Fund 232.94 21,255 83.62 9.52 1.54 63 1.77 9.75 14.01 185 (132) Moderate
5 Nippon India Large Cap Fund 35.50 13,010 80.75 14.19 4.63 46 1.82 8.66 13.99 186 (106) Moderately High
6 Essel Large Cap Equity Fund 24.23 100 83.72 7.72 3.34 44 2.35 13.69 13.68 192 (138) Moderately Low
7 Invesco India Largecap Fund 30.00 203 86.04 7.29 4.99 28 2.61 12.74 13.66 193 (196) Moderately Low
8 Franklin India Bluechip Fund - Growth 470.75 6,753 88.84 1.06 0.00 30 1.86 6.84 13.61 195 (123) Moderately High
9 DSP Top 100 Equity Fund 226.47 2,689 95.27 2.03 2.38 46 2.07 17.18 12.68 248 (235) Moderately High
10 Edelweiss Large Cap Fund 37.65 176 79.30 12.13 0.45 57 2.01 13.68 12.59 257 () Moderate
11 Mirae Asset Large Cap Fund 54.23 16,519 82.70 10.99 1.54 59 1.68 14.31 12.22 273 (187) Moderate
12 SBI Blue Chip Fund 41.59 23,484 82.85 9.58 0.86 52 1.66 13.63 12.12 278 () Moderate
Equity - Large & Mid Cap
1 UTI Core Equity Fund 60.95 867 52.65 35.79 8.48 59 2.44 1.69 19.39 60 (40) Moderate
2 ICICI Prudential Large & Mid Cap Fund 330.08 3,567 56.66 35.96 4.27 58 2.20 6.66 17.38 91 (72) Moderate
3 BOI AXA Large & Mid Cap Equity Fund 35.56 176 57.00 36.48 5.17 49 2.87 10.47 15.90 114 (133) Moderate
4 Franklin India Equity Advantage Fund 79.41 2,608 53.92 34.12 6.80 54 2.04 3.11 15.66 121 (89) Moderate
5 DSP Equity Opportunities Fund 232.69 5,623 59.47 36.10 3.25 62 1.85 12.90 15.34 129 (119) Moderately High
6 Motilal Oswal Large and Midcap Fund 10.60 330 49.39 40.36 5.82 21 2.43 0.00 15.25 135 (140) Moderately High
7 IDFC Core Equity Fund 45.40 2,831 51.48 35.90 10.56 66 1.97 4.37 15.09 143 (112) Moderate
8 Essel Large & Midcap Fund - Reg. Plan 15.69 105 42.49 35.06 19.85 46 2.42 10.21 14.86 150 (137) Moderately Low
9 SBI Large & Midcap Fund 226.64 2,808 42.45 37.88 16.78 54 2.10 8.12 14.40 165 () Moderate
10 HDFC Growth Opportunities Fund - Reg. Plan 115.50 1,374 61.07 36.68 1.00 46 2.45 7.60 14.39 166 (117) Moderately High
Others - Index Funds/ETFs
1 Nippon India CPSE ETF 22.93 11,269 87.34 12.42 0.00 10 0.01 -4.74 38.07 2 (2) Moderate
2 ICICI Prudential Bharat 22 ETF 34.10 9,620 88.92 10.17 0.90 22 0.01 -3.16 27.99 13 (13) Moderate
3 DSP Equal Nifty 50 Fund 9.92 109 99.83 0.00 0.00 50 0.88 5.06 25.53 16 (14) Moderately High

() There are some blanks in the previous ranking column. This is because these funds were not in our last ranking
** These funds are yet to complete one year

Individual investors now hold a lower share of industry assets, i.e. 53.7% in November 2019, compared with 54.0% in November 2018.

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Expense Return 1Expected

Category Weightage (%) DSIJ Current
NAV AUM No of
Scheme Name Companies Ratio (%) 1 Years yr return Rank Risk
Rank (`) (` Cr)
Large Cap Mid Cap Small Cap (%) (%) (26 Dec 19)
4 Nippon India ETF Nifty Midcap 150 62.22 192 1.81 95.17 2.74 149 0.31 ** 21.00 44 (44) Moderately High
5 ICICI Prudential Private Banks ETF 178.68 487 92.07 7.90 0.00 10 0.16 ** 20.61 48 (52) High
6 Motilal Oswal Nifty Midcap 150 Index Fund 10.88 27 1.87 93.70 2.55 150 1.03 ** 20.57 50 (51) Moderately High
7 Motilal Oswal Midcap 100 ETF 17.61 32 2.50 94.81 2.24 100 0.20 -3.37 18.80 67 (68) Moderately High
8 Kotak PSU Bank ETF 250.86 40 62.63 32.07 4.78 12 0.49 -17.54 18.01 81 (67) High
9 Nippon India ETF NV20 58.61 31 99.23 0.00 0.00 20 0.16 10.13 17.56 87 (45) Moderately Low
10 Nippon India ETF PSU Bank BeES 27.86 94 63.26 31.49 4.99 12 0.49 -17.42 17.41 89 (60) High
11 ICICI Prudential Midcap Select ETF 64.79 39 18.68 81.33 0.00 30 0.45 -2.75 17.02 96 (83) Moderately High
12 Aditya Birla Sun Life Banking ETF 322.31 140 96.18 3.45 0.00 12 0.17 ** 16.10 107 (105) High
13 Nippon India ETF Bank BeES 329.46 6,705 96.42 3.51 0.00 12 0.19 21.15 16.06 108 (109) High
14 SBI ETF Nifty Bank 326.49 4,178 96.57 3.42 0.00 12 0.20 21.20 16.02 109 () High
15 ICICI Prudential Bank ETF 323.50 602 95.13 3.38 0.00 12 0.16 ** 15.79 119 (104) High
16 ICICI Prudential Nifty Low Vol 30 ETF 91.92 82 97.51 0.00 0.00 30 0.42 6.44 14.80 153 (87) Moderately Low
17 ICICI Prudential S&P BSE 500 ETF 159.65 57 81.17 12.84 5.67 500 0.29 10.71 14.51 162 (115) Moderately High
18 ICICI Prudential Nifty Next 50 ETF 28.63 46 91.52 7.28 0.00 50 0.15 3.36 13.13 207 (170) Moderately High
19 ICICI Prudential Nifty Next 50 Index Fund 25.15 710 91.94 7.27 0.00 50 0.85 2.90 13.09 209 (175) Moderately High
20 UTI Nifty Next 50 Index Fund 10.12 569 92.89 7.31 0.00 50 0.77 3.23 13.07 210 (173) Moderately High
21 Mirae Asset Nifty 50 ETF 123.81 127 99.98 0.00 0.00 50 0.07 16.17 13.07 210 (151) Moderate
22 UTI Nifty Exchange Traded Fund 1,293.85 16,511 100.07 0.00 0.00 50 0.06 16.04 13.06 212 (152) Moderate
23 SBI ETF Nifty Next 50 291.54 420 92.72 7.29 0.00 50 0.15 3.85 13.05 213 () Moderately High
24 UTI Nifty Next 50 Exchange Traded Fund 291.83 377 92.71 7.29 0.00 50 0.14 4.17 13.05 213 (169) Moderately High
Equity - Sectoral/Thematic
1 Aditya Birla Sun Life MNC Fund - Gr 784.33 3,879 24.74 58.95 14.59 39 2.11 6.02 40.05 1 (1) Low
2 Nippon India Power & Infra Fund 92.37 1,292 33.60 13.59 49.21 36 2.34 -3.09 35.92 6 (5) Moderately High
3 UTI Healthcare Fund 84.62 401 60.40 27.04 11.22 23 2.52 2.18 34.26 8 (10) Moderately Low
4 IDFC Infrastructure Fund 13.64 789 36.58 19.58 43.05 42 2.36 -4.68 30.81 11 (11) High
5 Aditya Birla Sun Life Infrastructure Fund 29.12 497 30.51 27.83 38.46 49 2.62 -4.05 29.18 12 (12) Moderately High
6 HSBC Infrastructure Equity Fund 14.57 87 43.44 16.44 38.20 36 2.57 -14.20 24.56 20 (23) High
7 Taurus Ethical Fund 52.03 39 44.51 42.49 9.03 66 2.53 5.54 23.67 23 (20) Moderately Low
8 L&T Infrastructure Fund - Reg. Plan 15.11 1,704 32.26 28.96 36.32 50 2.20 -2.52 23.36 24 () Moderately High
9 Invesco India PSU Equity Fund 18.19 99 59.64 28.28 7.78 17 2.53 10.58 23.02 25 (27) Moderately High
10 ICICI Prudential Exports and Services Fund 57.86 693 63.46 23.49 9.55 24 2.58 7.93 21.46 33 (30) Moderate
11 BNP Paribas India Consumption Fund 12.82 453 59.91 23.77 9.09 33 2.37 19.90 21.45 34 () Moderate
12 UTI MNC Fund 195.85 2,204 56.75 31.52 9.63 40 2.11 -0.62 21.28 36 (45) Low
13 ICICI Prudential FMCG Fund - Growth 246.89 512 72.46 10.96 10.46 19 2.53 5.91 21.18 38 (42) Low
14 Kotak Infra. & Eco. Reform Fund - Reg. Plan 19.49 347 30.50 36.42 31.88 39 2.50 3.75 21.12 39 (48) Moderately High
15 ICICI Prudential Infrastructure Fund 49.33 1,110 55.03 8.24 34.87 51 2.32 2.32 21.09 40 (31) Moderately High
16 Invesco India Infrastructure Fund 17.23 41 31.06 29.03 38.16 27 2.49 6.69 21.05 42 (28) Moderate
17 Tata Infrastructure Fund - Reg. Plan 53.85 511 56.57 23.09 19.65 33 2.59 4.04 20.58 49 () Moderate
18 HDFC Infrastructure Fund - Reg. Plan 15.19 727 53.74 12.64 31.16 36 2.45 -2.86 20.01 54 (39) High
19 SBI Equity Minimum Variance Fund 10.28 49 100.14 0.00 0.00 50 0.70 0.00 19.64 57 () Moderate
20 Canara Robeco Infrastructure 44.05 111 48.85 20.51 27.67 32 2.60 3.65 19.61 58 (62) Moderately High
21 Franklin India Opportunities Fund 73.13 571 73.17 11.55 10.77 33 2.50 5.73 19.15 63 (56) Moderately High
22 Aditya Birla Sun Life Pharma & Healthcare Fund 10.48 173 48.73 29.01 18.73 23 2.71 0.00 18.40 72 (88) Moderately Low
23 Franklin Build India Fund 41.26 1,263 71.18 2.90 20.27 36 2.21 5.94 18.27 76 (66) High
24 ICICI Prudential India Opportunities Fund 10.49 2,206 67.59 18.99 5.45 34 1.99 ** 18.03 79 (58) Moderate
25 UTI Infrastructure Fund 52.89 1,281 57.55 21.64 19.36 40 2.30 7.71 17.98 82 (59) Moderately High
26 BOI AXA Manufacturing & Infrastructure Fund 14.76 43 24.59 34.19 38.35 51 2.54 2.36 17.65 85 (73) Moderately High
27 IDBI Healthcare Fund 10.54 33 46.18 34.50 4.73 21 2.72 ** 17.57 86 (113) Moderately Low
28 DSP Healthcare Fund 10.72 247 31.31 36.73 23.48 20 1.68 7.03 17.56 87 (81) Moderate
29 DSP Tiger Fund 91.01 1,064 60.21 13.37 24.50 60 2.19 7.69 17.19 94 (69) Moderately High
30 Tata India Consumer Fund 17.18 1,337 50.38 37.83 9.85 30 2.26 -1.62 17.01 97 () Low
31 ICICI Prudential Manufacture in India Fund 10.30 991 58.92 26.15 7.33 50 2.20 2.49 16.23 104 (99) Moderately Low
32 SBI Healthcare Opportunities Fund 117.68 944 47.24 31.36 16.88 20 2.34 0.44 16.13 105 () Moderately Low
33 ICICI Prudential Banking and Financial Services 69.38 3,632 63.11 19.23 13.85 30 2.00 16.25 15.96 110 (98) Moderately High

Institutional investors account for 46.3% of the assets, of which corporates are 90%.
The rest are Indian and foreign institutions and banks.

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Expense Return 1Expected

Category Weightage (%) DSIJ Current
NAV AUM No of
Scheme Name Companies Ratio (%) 1 Years yr return Rank Risk
Rank (`) (` Cr)
Large Cap Mid Cap Small Cap (%) (%) (26 Dec 19)
34 Mirae Asset Great Consumer Fund 37.05 952 52.88 31.63 14.34 37 2.24 9.97 15.94 111 (102) Moderate
Equity - Focused
1 HDFC Focused 30 Fund - Reg. Plan 77.09 512 79.63 5.76 12.03 28 2.70 4.55 16.27 102 (86) Moderately High
2 ICICI Prudential Focused Equity Fund 28.91 667 72.23 7.03 4.24 21 2.46 1.33 16.25 103 (80) Moderately Low
3 Franklin India Focused Equity Fund 41.91 8,994 72.24 4.30 12.29 28 1.82 11.50 15.82 117 (97) High
4 Nippon India Focused Equity Fund 47.15 4,281 64.85 21.34 9.50 29 2.09 7.45 15.35 128 (95) High
5 Aditya Birla Sun Life Focused Equity Fund 62.87 4,407 81.74 10.62 0.00 29 2.09 13.32 14.86 150 (115) Moderately Low
6 DSP Focus Fund 25.75 2,035 87.26 10.04 1.17 31 1.60 20.16 11.94 283 (242) Moderate
7 IDBI Focused 30 Equity Fund 10.27 196 92.89 4.16 0.00 30 2.55 8.56 11.57 299 (214) Moderately Low
8 Union Focused Fund 11.27 200 78.96 16.00 0.00 25 2.48 ** 11.31 312 (231) Moderate
Equity - Mid Cap
1 Taurus Discovery (Midcap) Fund 43.10 50 13.01 71.58 7.13 69 2.53 2.25 24.91 18 (21) Moderately Low
2 SBI Magnum Midcap Fund 70.26 3,533 4.89 65.88 26.31 46 2.02 ** 21.56 31 () Moderate
3 Aditya Birla Sun Life Midcap Fund 270.89 2,368 17.07 63.54 16.95 57 2.27 -3.23 20.17 53 (54) Moderately High
4 ICICI Prudential MidCap Fund 93.65 1,884 9.12 64.89 19.91 67 2.18 -0.15 19.38 61 (47) Moderate
5 BNP Paribas Mid Cap Fund 32.13 756 4.52 70.83 20.82 50 2.33 4.60 18.63 68 () Moderately High
6 PGIM India Midcap Opportunities Fund 17.73 130 3.14 67.32 27.59 47 2.51 2.07 18.30 74 () Moderately High
7 Invesco India Mid Cap Fund 49.30 645 11.93 66.89 16.32 44 2.51 3.75 18.12 77 (82) Moderate
8 Tata Mid Cap Growth Fund - Reg. Plan 139.74 768 13.32 66.62 13.86 41 2.52 7.17 17.91 83 () Moderately Low
9 Sundaram Mid Cap Fund 454.04 5,892 7.24 70.32 21.65 60 1.95 0.03 17.34 92 () Moderate
10 HDFC Mid-Cap Opportunities Fund - Reg. Plan 52.75 22,792 8.37 65.45 18.99 75 1.81 0.58 16.99 98 (90) Moderately High
Equity - Small Cap
1 Aditya Birla Sun Life Small Cap Fund 30.04 2,260 3.34 12.61 78.28 62 2.38 -11.39 32.38 10 (9) Moderately High
2 HSBC Small Cap Equity Fund 42.75 385 5.18 13.32 79.19 48 2.45 -10.75 27.54 14 (16) High
3 HDFC Small Cap Fund - Reg. Plan 38.03 9,034 4.77 15.56 69.03 73 1.94 -9.58 25.57 15 (15) Moderate
4 Sundaram Small Cap Fund 74.04 1,073 0.00 4.42 91.97 50 2.38 -6.73 22.58 27 () High
5 Kotak Small Cap Fund - Reg. Plan 71.41 1,326 5.79 25.33 68.19 59 2.17 4.42 21.82 29 (42) Moderate
6 Principal Small Cap Fund 10.13 159 16.07 9.90 64.19 62 2.48 ** 21.40 35 (37) Moderately High
7 Franklin India Smaller Companies Fund 49.07 6,953 15.19 10.12 67.02 73 1.86 -5.23 21.27 37 (32) Moderately High
8 IDBI Small Cap Fund 8.86 132 5.99 17.27 68.75 53 2.56 -5.04 21.09 40 (38) Moderately High
Hybrid - Aggressive
1 HDFC Hybrid Equity Fund - Reg. Plan 55.21 20,926 59.03 11.13 7.04 76 1.76 8.78 19.10 64 (36) Moderately High
2 BNP Paribas Substantial Equity Hybrid Fund 12.97 340 53.59 14.15 10.21 48 2.44 17.71 18.02 80 () Moderately Low
3 UTI Hybrid Equity Fund 167.17 4,760 56.77 19.43 6.35 76 1.90 2.93 16.82 99 (75) Moderately Low
4 ICICI Prudential Equity & Debt Fund 139.06 23,501 69.21 7.07 6.67 108 1.71 10.03 16.13 105 (76) Moderate
5 BOI AXA Mid & Small Cap Equity & Debt Fund 11.86 345 0.00 56.40 25.97 43 2.66 -4.35 15.30 130 (139) Moderately High
6 L&T Hybrid Equity Fund - Reg. Plan 27.18 7,895 66.32 15.07 3.87 72 1.80 7.55 14.70 157 () Moderately Low
7 Nippon India Equity Hybrid Fund 54.27 8,763 70.55 3.14 5.07 52 1.82 4.13 13.76 188 (129) Moderate
8 Principal Hybrid Equity Fund 77.00 1,511 68.90 7.38 3.94 54 2.12 3.54 13.37 202 (144) Moderately Low
9 Kotak Equity Hybrid Fund - Reg. Plan 26.61 1,461 53.36 14.97 11.87 53 2.13 14.97 13.26 204 (211) Moderate
10 Invesco India Equity & Bond Fund 11.06 422 45.73 33.43 1.37 45 2.48 11.09 12.89 236 (209) Moderately Low
11 DSP Equity & Bond Fund 163.43 6,253 64.95 15.37 5.51 73 1.82 15.74 12.85 241 (268) Moderate
12 Franklin India Equity Hybrid Fund 124.29 1,830 63.08 8.03 1.41 40 2.12 8.77 12.83 244 (202) Moderate
Equity - Multi Cap
1 Parag Parikh Long Term Equity Fund 26.70 2,480 44.64 9.59 11.28 21 2.11 16.15 21.62 30 (26) Moderate
2 Tata Multicap Fund 11.27 1,736 75.66 17.84 5.35 40 2.16 12.38 20.40 51 () Moderately Low
3 Taurus Starshare (Multi Cap) Fund 112.60 219 79.25 10.55 6.03 48 2.63 6.25 19.60 59 (55) Moderate
4 ICICI Prudential Multicap Fund 297.21 4,655 70.67 15.08 10.60 78 1.94 7.25 18.60 69 (50) Moderate
5 ITI Multi Cap Fund 11.23 66 59.69 16.61 17.24 90 2.59 ** 18.31 73 (63) Moderate
6 Franklin India Equity Fund 589.27 11,459 75.87 12.50 5.37 53 1.77 4.47 15.44 125 (91) Moderately High
7 L&T Equity Fund - Reg. Plan 83.77 2,697 74.70 17.23 6.00 62 2.11 6.63 15.30 130 () Moderate
8 HDFC Equity Fund - Reg. Plan 668.58 23,674 88.53 6.30 4.12 46 1.71 8.30 15.13 142 (84) Moderately High
9 SBI Magnum Multi Cap Fund 50.86 8,317 67.34 17.20 11.98 53 1.85 12.26 14.78 155 () Moderate
10 Nippon India Multi Cap Fund 96.82 10,379 57.72 23.74 17.71 48 1.95 2.72 13.70 191 (127) Moderately High
11 LIC MF Multi Cap Fund 50.86 299 67.47 19.27 5.15 53 2.59 15.56 13.18 206 (193) Moderately Low
12 DSP Equity Fund 42.70 3,176 73.57 18.86 6.88 50 1.74 19.25 12.86 238 (264) Moderate
13 Mahindra Mutual Fund Badhat Yojana 11.72 317 69.31 21.16 7.47 54 2.46 15.78 12.84 242 (205) Moderate

Equity-oriented schemes derive 87% of their assets from individual investors (Retail + HNI). Institutional investors
dominate liquid and money market schemes (85 ), debt oriented schemes (55%) and ETFs, FOFs (94%).

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Expense Return 1Expected

Category Weightage (%) DSIJ Current
NAV AUM No of
Scheme Name Companies Ratio (%) 1 Years yr return Rank Risk
Rank (`) (` Cr)
Large Cap Mid Cap Small Cap (%) (%) (26 Dec 19)
14 Shriram Multicap Fund 10.80 59 70.81 15.28 4.15 44 2.60 7.77 12.37 268 (238) Moderately Low
Equity - Value/Contra
1 Aditya Birla Sun Life Pure Value Fund 45.73 4,199 42.98 20.83 34.21 81 2.18 -10.25 25.26 17 (17) Moderate
2 HDFC Capital Builder Value Fund - Reg. Plan 284.02 4,564 68.67 7.17 21.11 60 2.03 1.04 24.26 21 (19) Moderately High
3 IDFC Sterling Value Fund 46.86 3,162 16.94 37.46 41.16 76 2.03 -6.54 24.02 22 (24) Moderately High
4 Quantum Long Term Eq. Value Fund - Reg. Plan 53.23 914 77.52 12.87 1.45 27 1.78 0.00 21.56 31 (22) Moderately Low
5 IDBI Long Term Value Fund 10.29 132 61.90 22.52 12.40 49 2.65 2.08 20.89 45 (41) Moderately High
6 Templeton India Value Fund 240.46 505 66.46 14.87 14.07 42 2.52 0.10 20.85 46 (29) High
7 ICICI Prudential Value Discovery Fund 141.70 15,188 67.45 15.51 3.34 46 1.84 1.88 17.20 93 (74) Moderate
Equity - ELSS
1 Aditya Birla Sun Life Tax Relief 96 32.21 9,998 47.32 40.24 10.32 43 1.97 6.41 37.15 3 (3) Moderately Low
2 Mahindra Kar Bachat Yojana 11.85 340 80.55 14.99 3.07 43 2.33 6.68 22.23 28 (35) Moderately Low
3 Quantum Tax Saving Fund - Reg. Plan 52.71 78 75.49 12.55 1.37 27 1.78 -0.05 21.02 43 (25) Moderately Low
4 Taurus Tax Shield 81.48 67 74.75 17.26 4.11 48 2.48 9.74 19.06 65 (65) Moderate
5 PGIM India Long Term Equity Fund 14.56 361 70.55 11.64 12.07 41 2.40 9.23 15.94 111 () Moderate
6 HDFC TaxSaver - Reg. Plan 515.27 7,449 83.77 8.04 4.05 48 1.97 4.92 15.43 126 (94) Moderately High
7 ICICI Prudential Long Term Equity Fund 390.29 6,630 69.57 9.22 13.66 55 2.13 9.83 15.28 133 (96) Moderate
8 IDFC Tax Advantage (ELSS) Fund 54.66 2,107 48.65 18.45 28.54 72 2.14 2.57 14.93 146 (110) Moderately High
9 L&T Tax Advantage Fund - Reg. Plan 55.32 3,396 64.38 24.06 9.47 62 2.03 6.01 14.92 147 () Moderate
10 Tata India Tax Savings Fund - Reg. Plan 19.23 2,063 79.47 11.42 6.70 35 2.09 15.43 14.87 149 () Moderate
11 SBI Magnum Tax Gain Scheme 93 143.06 7,376 73.34 11.44 10.15 62 1.86 5.78 14.67 159 () Moderate
12 UTI Long Term Equity Fund 91.51 1,283 60.27 26.62 10.03 67 2.20 11.30 14.48 163 (126) Moderately High
13 Essel Long Term Advantage Fund - Reg. Plan 14.82 59 53.08 23.09 20.88 44 2.25 9.03 14.30 171 (150) Moderately Low
14 HSBC Tax Saver Equity Fund 38.15 158 72.14 16.79 7.98 33 2.50 9.85 14.21 174 (179) Moderate
15 Principal Tax Savings Fund 207.06 407 75.36 14.95 6.21 60 2.53 3.95 13.93 187 (128) Moderate
Hybrid - Equity Savings
1 UTI Equity Savings Fund 10.39 252 66.12 10.18 0.69 48 1.51 4.76 18.30 74 (61) Moderately Low
2 Edelweiss Equity Savings Fund 14.46 116 49.29 15.36 2.62 61 1.74 7.19 12.86 238 (182) Moderately High
3 Principal Equity Savings Fund (Growth Accum) 36.99 50 69.84 4.55 1.14 43 2.68 5.70 11.95 282 (198) Moderately Low
4 AXIS Equity Saver Fund 13.45 813 60.19 10.90 1.25 62 2.35 9.17 11.85 287 (251) Low
5 HDFC Equity Savings Fund - Reg. Plan 37.48 4,503 71.43 6.46 5.03 103 1.97 6.29 11.84 288 (210) Moderately Low
6 DSP Equity Savings Fund 13.10 860 53.60 16.77 4.44 84 2.17 7.57 11.00 328 (280) Low
7 Tata Equity Savings Fund - Reg. Plan - Growth 34.02 139 58.71 6.52 0.77 38 2.30 8.04 10.71 342 () Moderately Low
8 Aditya Birla Sun Life Equity Savings Fund 13.93 738 39.18 31.99 6.02 52 2.46 7.98 10.67 345 (284) Moderately Low
9 Franklin India Equity Savings Fund 10.37 256 60.03 5.82 0.79 41 2.13 4.61 10.26 361 (300) Low
Hybrid - Dynamic Asset Allocation/Balanced Advantage
1 HDFC Balanced Advantage Fund - Reg. Plan 200.26 44,345 76.31 7.92 5.72 83 1.81 7.94 18.05 78 (57) Moderate
2 Tata Balanced Advantage Fund 10.79 1,088 61.83 11.32 0.44 64 2.26 0.00 13.73 190 () Moderately Low
3 Edelweiss Balanced Advantage Fund 24.56 1,482 56.11 12.92 3.23 62 2.11 8.53 11.80 290 () Low
4 Nippon India Balanced Advantage Fund 94.05 2,612 49.03 17.66 2.93 63 2.16 9.10 10.95 335 (233) Moderately Low
5 Shriram Balanced Advantage Fund 10.41 42 68.95 5.75 0.00 45 2.64 ** 10.68 344 (247) Moderately Low
6 Kotak Balanced Advantage Fund 11.22 3,246 53.91 15.60 3.27 115 2.09 12.98 10.42 356 (247) Low

Solution Oriented
1 Aditya Birla Sun Life Retire. Fund - The 30s Plan 10.33 120 44.63 38.63 10.56 44 2.65 ** 37.13 4 (3) Moderately Low
2 Aditya Birla Sun Life Bal Bhavishya Yojna - Wealth Plan 10.73 208 44.51 38.54 10.60 44 2.60 ** 36.57 5 (6) Moderately Low
3 Aditya Birla Sun Life Retire. Fund - The 40s Plan 10.35 76 37.02 29.28 8.14 46 2.49 ** 33.87 9 (8) Low
4 Tata Retire. Savings Fund - Moderate Plan - Reg. Plan 31.64 1,151 62.18 18.70 3.66 47 2.21 10.24 19.31 62 () Moderately Low
5 Tata Retire. Savings Fund - Progressive Plan - Reg. Plan 31.26 728 70.70 21.20 4.47 44 2.43 13.39 19.06 65 () Moderately Low
6 HDFC Retire. Savings Fund - Equity - Reg. Plan 17.11 825 46.51 12.49 25.11 58 2.53 6.19 17.04 95 (70) Moderately High
7 HDFC Childrens Gift Fund - Reg. Plan 124.68 3,063 49.18 12.34 11.69 64 2.13 8.63 15.92 113 (100) Moderately Low
Hybrid - Multi Asset Allocation
1 ICICI Prudential Multi Asset Fund 274.88 11,698 63.20 6.45 5.28 74 1.82 8.21 14.04 183 (118) Low
Equity - Dividend Yield
1 ICICI Prudential Dividend Yield Equity Fund 15.82 170 52.97 14.41 26.99 35 2.68 -2.04 22.95 26 (18) Moderately High
2 Templeton India Equity Income Fund 45.71 909 37.93 19.59 15.36 42 2.34 5.08 20.40 51 (34) Moderate
3 UTI Dividend Yield Fund 65.28 2,389 70.38 18.17 9.17 50 2.12 4.58 16.49 101 (78) Low

All the NAV figures are for date Dec 26, 2019. Trailing returns are also calculated for the same date. AUM, weightage of a stocks, number
of companies and expense ratio are for the period ending Nov. 2019. All the raw data is provided by Dion Global Solutions Ltd.

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