22 November 2023 India | Strategy

JM Financial India Conference 2023

Reimagining the India Growth Story - Day 2
55+ companies presented on Day 2 of the conference today, including two unlisted players JMF Research
jmfinancial.research@jmfl.com | Tel: (91 22) 6630 3351
(Zepto and Swiggy) in the new age space. The co-founder of Zepto gave a fresh perspective
on the buying preference of the Indian consumer in the grocery space, and how the
company is focusing on operating excellence to cater to India's preferred way of grocery
shopping, which is high frequency and low ticket. Key takeaways from the companies who
presented at the conference today are included inside. The three day conference concludes
tomorrow with ~40 more companies scheduled to participate.

 Participation of new-age companies: Within the unlisted space we hosted two new-age
companies, Zepto and Swiggy, on the second day of the conference. The interaction with
both of them was quite notable, Zepto’s co-founder Aadit Pachila believes that the
buying pattern (grocery) of Indians is concentrated in ‘high frequency, low ticket’ items,
with a preference for fresh products. Proximity is one aspect that organised retail has not
managed to solve due to high movement cost and low storage space in Indian
households. This encourages consumers to shop more frequently from local options.
Through quick commerce, Zepto believes it can not only solve proximity in grocery but
also address the Indian consumer’s behaviour of top-up and high frequency purchases.

 Zepto’s focus on operating excellence: Zepto’s key focus has been on six sigma style
operating excellence. The procurement function is being run by best-in-class
professionals. Only one dark store (out of 300) has been shut down since inception; the
company has streamlined the process to such an extent that the product gets packed in
90 seconds in the dark store. Even with the lowest delivery cost in the industry the
utilisation rate of delivery partners is 15% higher than the industry benchmark.

 Expansion story of Corporate India intact: SAMIL in the auto ancillary space continues to
guide for higher capex of INR 45bn even as it is committed on its deleveraging path.
Gujarat Pipapav’s capex on the new liquid berth, at an estimated cost of INR 7.2bn, will
be completely funded through internal accruals and is expected to be operational from
2QFY26. Petronet LNG indicated that it will not reconsider its decision to set up the
Petchem capacity and is also taking risk mitigation steps to offset the cyclical nature of
the Petchem business. The management of Castrol expects its lubricants sales to outgrow
the industry even as competitive intensity increases. Industrial and Capital goods players
are guiding for strong order pipelines in segments like Data Centres, Metals, Commercial
& Residential realty, Pharma and Refinery space. Large banks are comfortably capitalised
and have no intention to raise additional capital; however, increase in risk weights would
exert upward pressure on lending rates.

 Corporate commentary on the external sector: Auto companies expect the luxury car
market to remain insulated from the global slowdown. Pricing headwinds across the
chemicals sector is expected to continue, North America is expected to be the last to
recover. However, Indian chemical players have become the preferred suppliers to
European companies after they moved out of China. Demand outlook in home textile
space is expected to remain strong; this sector has multiple tailwinds in the form of easing
cotton prices and government’s increased focus on the textile ecosystem while
announcement of Free Trade Agreements with UK/EU would be the greatest trigger for
the textile sector. Polycab is setting up a distribution network in its key export market for
JM Financial Research is also available on:
cables in USA; currently it is directly supplying to EPC contractors. The management Bloomberg - JMFR <GO>,
highlighted that demand for premium products (cables) is better than mid and lower Thomson Publisher & Reuters,
segments in the domestic market. S&P Capital IQ, FactSet and Visible Alpha
 On the concluding day of the three-day conference tomorrow, we will be hosting ~40
Please see Appendix I at the end of this
companies, starting with Zomato’s group meeting. Also lined up are companies across report for Important Disclosures and
Banking, Consumption, Auto, Cap Goods, Utilities, etc. Disclaimers and Research Analyst
Certification.

JM Financial Institutional Securities Limited

JM Financial India Conference 2023 22 November 2023

Index of Key Takeaways – Day 2

Company Page No Company Page No
Automobiles 3 Industrials 13
Mahindra & Mahindra Harsha Engineers International
Tata Motors PG Electroplast
Auto Ancillaries 3 Infrastructure 13
Minda Corporation Kalpataru Projects International
Samvardhana Motherson International KNR Constructions
BFSI 4 NCC
360 One WAM Welspun Enterprises
Nippon Life AMC Internet 15
ICICI Bank CarTrade Tech
Kotak Mahindra Bank Swiggy
State Bank of India Zaggle
One 97 Communication Zepto
MAS Financial Services Zomato
PNB Housing Finance Media 17
Satin Creditcare Saregama India
Building Materials 7 Metals and Mining 17
Polycab Jindal Steel & Power
Consumer 8 JSW Steel
Bajaj Consumer Vardhman Special Steels
Tata Consumer Products Oil and Gas 19
Trent Castrol India
Chemicals 9 Petronet LNG
Aarti Industries Ports and Logistics 20
Anupam Rasayan Gujarat Pipavav
Archean Chemicals JSW Infrastructure
PCBL Power & Utilities 21
UPL SJVN
Exchanges 11 Torrent Power
Central Depository Services Real Estate 22
Hotels 11 Brookfield India Real Estate Trust
Chalet Hotels Embassy Office Parks REIT
Healthcare 12 Sugar 22
Biocon Balrampur Chini
Orchid Pharma Textile 23
Sun Pharma Welspun India

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Here are the key takeaways from the conversations at JMF

Conference – Day 2
Automobiles

Mahindra & Mahindra | BUY | TP 1,725

 At the start of FY24, Tractor industry was expected to grow by 4-5%. However,
looking at the spread of monsoon, the company expects industry to be flattish in
FY24 owing to high base of FY23.

 Auto EBIT margin - Higher operating leverage (on volume ramp-up), softening
commodity prices and value engineering is expected to drive margins going ahead.
Advertisement during World Cup 2023 is expected to have one-time unfavourable
impact during 3Q.

 New booking run-rate remains strong at 51k units/month for PV business.

Cancellation rates are lower than 8%. Targeting to ramp-up production capacity to
49k units/month (excl. 5-door Thar) by FY24 end (from 42k units/month currently).

 New launch pipeline: EV launches are on track to start from Dec'25. Thar 5-door
and XUV300 refresh are expected in FY24.
 Currently E3W market share stands at 63% and is expected to decline once Bajaj
Auto launches its product on pan-India basis. However, E3W penetration currently
stands at 10% which provides significant growth opportunity going ahead.

 In the Tractor segment: Advertisement during World Cup 2023 is expected to have
one-time unfavourable impact during 3Q. Also, launch of OJA (lower HP segment)
may have an unfavourable impact on mix.

Tata Motors | BUY | TP 730

 Aims to position JLR as a luxury brand. Hence, ASPs are expected to grow higher.
Company's focus will shift from volumes to revenue growth.

 Although there are macro concerns in Europe, luxury segment remains largely
unaffected and demand remains steady at JLR. Order book remains full for the next
2 quarters and 77% of bookings are for premium models (Range Rover and
Defender).

 VME at JLR is expected to see a moderate increase. However, softening commodity

prices, receding inflationary pressure and richer mix is expected to support margins.

 Expect domestic CV segment to grow at high single-digit in FY24. The company

remains watchful on growth for FY25.

 Expect domestic PV segment to grow in single-digits in FY25. Demand in the entry-

segment remains muted and there has been increase in discounts in this segment.
SUV demand remains strong for recent launches and there are no discounts.

 On track to become net cash for domestic business in FY24 and for JLR in FY25.

 New launches - Curvv EV in 2025, Sierra EV in 2026. ICE variants for both these
models will be launched post EV launches.

 Sanand facility is expected to be operational by 1QFY25.

Auto Ancillaries

Minda Corporation | NR

 Order book remains robust. Won (lifetime) orders worth INR 65bn during 1HFY24
(INR 78bn during FY23).

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 Targeting USD 1bn revenue in the next 3 years. Expect to outperform the industry
by 10-15% over the medium-term. Key pillars of growth: 1) Higher content per
vehicle led by product portfolio expansion and premiumisation and 2) exports.

 Margins have increased from ~9% to 10-11% in the last 2 years. Targeting ~12%
margins in the medium-term.

 Expects robust growth in Vehicle Access Systems and Clusters segment led by
addition of new customers (4W OEMs) and premiumisation. The company has been
working on Wiring Harness segment and it is expected to deliver positive results
going ahead.

 Content per vehicle opportunity: There is a shift from mechanical locks (INR 400-
500/vehicle) to advanced safety locks (keyless locks) with content upto INR 4-
5k/vehicle. In the Clusters segment, content is expected to increase by 3-4x (from
INR 800-900/vehicle currently) with shift towards TFT clusters.

 Most components are EV agnostic. Current share of EV revenue stands at 5%.

Share of EV revenue in 2W business stands at 11% (higher than industry
penetration).

 Investment in Pricol: Awaiting CCI approval. The company believes that partnering
with Pricol is a win-win situation for both. And, it will help both the companies to
fend of global competition in instrument cluster segment.

Samvardhana Motherson International | BUY | TP 130

 Debt increase is by design considering execution of multiple acquisitions. The

company is on deleveraging path. It is working on reducing working capital as well.
Overall, Net debt / EBITDA is expected to decline during 2HFY24 to 1.6x vs. 1.9x at
the end of 2Q. This is after factoring in higher capex (INR 45bn).

 Both revenue and margin performance is expected to be better during 2HFY24.

 Acquisition pipeline remains robust. Announced 15 acquisitions since Sept’22 with

annual revenues of ~USD 2.6bn. Large part of these will get consolidated by
1HFY25. Full benefit of these acquisitions will be visible from 2HFY25.

 Historically, PV wiring harness content has grown at 5-7% CAGR. With the shift
towards EVs, content is expected to increase by 1.5-2x. Even for Mirrors business,
higher cameras, ADAS, mirror-less cameras etc. is driving higher content per vehicle.

 Witnessing robust growth opportunities in India. Announced 10 new plants across

automotive and non-automotive businesses. 3-4 units are expected to be
operational by FY24 end and the rest during 1HFY25. So the company expects
strong ramp-up during 2HFY25.

BFSI

Asset Management Companies

360 One WAM | NR

 As of Sep'23, the recurring revenues contributed to 76% of the overall revenue and
is expected to increase further as the company plans to add clients with surplus
between INR 50mn to 100mn (from current predominant mix of clients with surplus
250mn above). These new clients are the next level employees (CXOs) of the
existing corporate clients
 Cost to income ratio for the company has been higher due to investments in new
business initiatives (at 48% in 1H24) and the company expects to bring it down to
42-43% in the medium term

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 Growth in AUM was driven by higher flows in advisory business which takes time
for deployment and hence the revenue is expected to pick-up in second half of
FY24

 Company focuses on AIFs and advises clients with focus on conservation of capital
with inflation beating returns (9%-12%)

 The company is also planning on focusing on attracting foreign funds and LRS
(liberalized remittance schemes) funds and has hired a 20 member team from Bank
of Singapore.

Nippon Life AMC | BUY | TP 430

 Management expects minimal impact of HDFC merger as the HDFC bank channel
for Nippon AMC contributes to just 2% of distribution

 The company has focused on both active and passive schemes with total of 14.6
million unique investors. Nippon India Mutual Fund has emerged as one of the
largest ETF players with an AUM of INR 808bn with a market share of 14%

 Digital strategy of the company has contributed to an increase of 64% in digital

purchase transactions in 1H24

 The company remains focused on sustaining profitable growth via strong

distribution network, digital capabilities, consistent fund performance and risk
management

Banks

ICICI Bank | BUY | TP 1,155

 ICICI remains positive on the quality of its personal loan portfolio with 55-60%
belonging to existing customers, 80-85% are salaried and 75% customers are elite
corporate salaried customers.

 Mgmt. also highlighted that majority of their portfolio is organically built with
limited sourcing happening from fintechs with average portfolio ticket size of INR
0.5-0.6mn.

 NIMs are expected to compress from current levels although, at a slower pace
(implying largely stable NIMs for FY24 vs. FY23). NIMs are expected to bottom out
by 4Q24 supported by repricing.
 CASA stands at 41% as deposit growth remains challenging.

 Mgmt. mentioned that they are awaiting SEBI's approval over ICICI securities
transaction post which they will approach NCLT. Voting for which may happen in 3-
4 months.

 Retail slippages should remain low. Corporate recoveries/upgrades are expected to

be higher in coming quarters. Bank expects credit costs to remain consistent and is
not building any more contingent provision neither is expected to utilize existing
provision.

Kotak Mahindra Bank | BUY | TP 2,205

 Mgmt. expects banks strategy to remain consistent as the New CEO plans to join on
1st of Jan 2024. They also confirmed that the shareholders' approval is in place for
appointment of Uday Kotak as Non-Independent ED.

 Bank remains confident on its portfolio growth with it expected to grow overall
book in mid-teens. Growth is broadly expected to be 1.5-2X nominal GDP, as retail
book is expected to grow faster than wholesale book.

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 Mgmt. also highlighted on their recent majority stake sell in Kotak General
Insurance, which was on the back of poor performance by the subsidiary in the past
and remains optimistic that Zurich has the ability and strengths to scale the
business.

State Bank of India | BUY | TP 710

 Impact of RBI's circular: NBFC's exposure across banking industry stands at 14trn
and of that SBI's stands at INR 3.49trn. This would require additional risk weight of
INR 730bn from current INR 680bn (~30 bps impact). Whereas, additional risk
weight of INR 800bn on express credit card- unsecured (~40 bps impact).

 Mgmt. highlighted that they comfortably capitalized and have no intention of

raising capital as they look at various options viz. a) ploughing back profits of INR
480bn of the projected profits of INR 680bn for FY24 and b) raising AT1 bonds
(approval of INR200bn in place, INR 30bn raised by far and plan to raise INR 50bn
soon).

 SBI remains confident on garnering deposits and are comfortable at CASA of 41%,
as they are now focusing on partnering with autonomous bodies, schools, trusts,
etc. SBI also consciously plans to reduce bulk deposits.

 Mgmt. remains confident on asset quality of the wholesale book with PCR of
99.5%.

 Growth momentum across segments remains robust with SBI forecasting 14-15%
YoY.

Fintech

One 97 Communication | BUY | TP 1,325

 The company is set to benefit from its well-known brand name, network effect
benefits and expansion into untapped merchant lending model.

 Merchant lending is being built on fusion of marketplace and platform model with
small ticket size (Postpaid ATS of INR 7k and Merchant Loan ATS 1.8L). This is an
origination based model with origination fees of c.3.5% and additional incentive of
c.1.5% (depending on credit quality of the originated loans) while underwriting
done by lending partners.

 Recent RBI regulations on unsecured lending are expected to result in gradual slow-
down of PL growth to 30% YoY (from c.100% currently) as the company takes
actions to preserve asset quality. The management believes PL pricing to inch-up
going ahead and expects the lenders to pass it on to its customers.

 With the aim to increase AUM the company has launched new products (pocket
sound-box, Bluetooth sound-box) which will drive the growth in AUM.

NBFCs

MAS Financial Services | NR

 Multi-product company whose focus is on profitability first and growth later.

 65% of the portfolio is direct lending, while 35% is through NBFC partners.

 Recovery is 100% through banking channels, no cash.

 All loan products except 2W is cash flow based.

 On book consumer credit is INR 200-250cr, so impact on tier 1 if any, is marginal.

Cost of funds is not impacted as 90% of borrowings from banks is under PSL
category.

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PNB Housing Finance | BUY | TP 825

 PNB Housing targets 75:25 HL: non-HL for prime segment and 65:35 Salaried: SEMP
for affordable segment. Overall it targets 60 prime and 40 affordable

 Company has undrawn sanction of INR 25-30bn from NHB borrowings. Plans to
raise in the coming quarters.

 Company had BT outs of 22% 4-5 quarters back which has gone down to 17%.
Management does not expect any major change in this ratio from here on. BT ins
are similar to BT outs. Going forward BT ins would be higher on account of their
focus on affordable now.

 Cost /assets for prime is only 80-90bps while for affordable, it is 1.6-1.7%. So the
blended costs/assets stand at ~95bps. Overall incremental costs are only manpower
and branch from here on. Infrastructure is already well established.

 Affordable housing yield right now is lower at 11.6% as it wanted to initially build
its affordable book. Moving ahead, It'll head towards 13%+ in near term.

 Currently branch count stands at 100 affordable and 100 prime. It plans to increase
upto 160 affordable and 127 prime by Mar'24.

Satin Creditcare | BUY | TP 330

 Well diversified MFI. Growth guidance maintained at 25%+ for FY24.

 Management confident to sustain growth rate going forward, as states are still
under penetrated.

 Non-MFI portfolio which is currently 12%, to be increased to 25% in next 4-5 years.

 After COVID, rejection rate has increased from 30% to 50%. No ALM challenge
either, as lending tenure is 2 years and borrowing tenure is 3 years.

 Last mile tracking using in-house software. Data analytics capabilities and
technology prowess differentiates them from other players.

Building Materials

Polycab | NR

 Domestic demand for Wires and cables was stable in Oct & Nov’23, while export
demand in continues to remain resilient.
 Management expects W&C EBITDA margins to remain around 12-14% in near term
& 11-13% on sustainable basis.

 USA is a key export geography for Cables, where in company is directly supplying to
EPC contractors. Company is establishing its distribution network in USA.

 Consumer sentiment for FMEG products continues to remain subdued.

Management highlighted that demand for premium products is better; however,
Polycab’s product portfolio is more inclined towards mid and lower segment
products, where demand is subdued. Management expects margin for the segment
to improve gradually to 10% by FY26.

 Management is targeting 2x industry growth for FMEG segment and aims to be

among top 3 players within the sub segments. Within FMEG segment, management
is focusing on Switch & Switch gears and cross selling it with wires and cables.
 Company has guided for capex of INR 6-7bn each for FY24 & FY25. Of this, 2/3rd is
estimated to be for C&W capacity addition (including EHV) and 1/3rd for FMEG
product.

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Consumer

Bajaj Consumer | NR

 October month growth was strong in double-digits, which was as per expectation.
Urban continued to do well and registered a mid-single digit growth in 1HFY24.
Management is not particularly optimistic about rural demand improvement.

 In ADHO, larger packs have done well. However, struggle remains on the sachet
and the smaller packs, mainly in rural. As the rural improves, sachet should be taken
care off. ADHO should be contributing 40% of total sales in the next 3-4 years.

 The company continues to support the brand with strong media across TV, digital,
print and increased investments in visibility across the various channels. Digital
media support was provided in key HSM markets. The A&P spend in the year for
ADHO has been substantially higher than last year. Ad spends to remain in the
range of 16-18% of sales.

 There have been corrections in prices of major raw materials compared to last year.
Prices of LLP, RMO, and packing material except glass packing have seen some
reduction. The company continues to take steps to bring structural cost reduction in
material costs through a combination of optimization of specs, finding a vendor
base and development of alternate packing materials. Raw material prices are
expected to be range bound in the near term.

 The company has c.8.5 lac touchpoints which is expected to reach 10 lac in the next
few years.

 Key growth drivers for the domestic market: (1) strengthening and broad basing
hair oil; (2) having a more comprehensive range of Almond Drop extensions; and (3)
entering into the ethnic range, which started with Henna. Company is targeting
double digit volume growth for FY24.

Tata Consumer Products | BUY | TP 965

 Nourischo – Portfolio has been key outperformer for Tata Consumer. Company is
targeting INR 10bn in sales and breakeven at operating level in FY24. Innovation
and distribution expansion will be key drivers to scale up the business.

 Tata Sampann – Company has been able to reduce price premium vs. peers to 10-
15% (vs. 30-35% earlier) led by driving efficiencies in procurement and distribution
(reduction in freight cost with new processing facility in Lucknow).
 Salt business – Focus will be on gaining market share from unorganized segment
(c.50% of the market) and premiumisation. Led by strong innovation capabilities,
company has been able to increase share of premium products in this business to
6.5% (vs. <1% in FY20).

 International business – With scale up in Foods business, company has been able to
reduce dependence on international business to c.25% of sales vs. 1/3rd couple of
years back. The growth in this portfolio is likely to be in low to mid-single digit.
Focus is on improving margins led by building back gross margins (price hikes
implemented), rationalize costs (reduced headcount in UK) and drive efficiencies.

 Distribution – Management believes with 3.5mn outlet reach, the width is largely in
place and focus is now building depth (improve throughput per store).

Trent | NR
 Company’s strength lies in its differentiated approach in retailing – selling only own
branded products, through own stores (not in MBOs or marketplace) and ability to
incubate & nurture brands.

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 Company will continue to focus on incubating new formats (Utsa/samoh). Utsa has
25 stores and with format seeing some stabilization, idea will be to scale up store
network.

 Star Bazaar – Management is more confident about the format vs. earlier years and
store expansion will be one of the key focus area going ahead.

 Inventory management – Entire backend operation is done by the company and no

major activities (warehousing/transportation) is outsourced. Trent works on 24hr
replenishment cycle for majority of its stores. Slow moving inventory is liquidated
through EOSS, twice a year in the month of January and August.

Chemicals

Aarti Industries | NR

 The management highlighted that its EBITDA as a % of gross block is 22-23% and
aims to increase the same to 25-35% by FY25.

 The management stated that they will miss on their FY25 EBITDA expectations by 5-
15% as visibility remains dim. Further visibility on FY25 will only come by end of
CY24 as demand is remains tepid. The recovery will be driven by volume with over
30-40% volume improvement YoY.

 On chloro-toluene, the management highlighted that ground work for the plant has
been initiated. The total capex for the project is around INR 25bn and asset turns
are expected to be ~1.3-1.5x. The company aims to start commercialisation by mid
FY25 and bring all chlorine chemistries on stream by FY26. Overall the domestic
market is INR 17-18bn with the total import market of INR 20bn. These products
are used in Argo-Chemicals, Pharma Intermediates and Pigments and have 25-30%
Margins.

 The company aims to main a peak debt/equity ratio of 0.9x with debt levels peaking
out in FY26.

Anupam Rasayan | HOLD | TP 980

 The company reiterated that they have three main growth drivers 1) The
commercialisation of 10 new products every year on its existing base of ~90
products ; 2) Expansion of its LoIs, having signed LoIs worth INR 7.6bn in the last
three years. These LoIs are on a cost plus mark-up basis. The LoIs are expected to
ramp up to INR 3.5bn-INR 4bn revenue contribution per year and 3) The expansion
of its fluorination chemistries and capabilities. The company believes to have a
runway of USD 220-260mn of revenue potential only in Fluorination related
products. Over all the management commented that the overall pie of the
addressable fluorination market is USD 5bn.

 The company aims to bring inventory levels to 180 days from ~220-290 days. The
management commented that since it is often the single supplier to multiple clients
it tends to have slightly increased inventory days as they often end up holding
inventories for the same. The company aims to unwind inventory in a phased
manner soon.

 The management commented that despite having 100% wallet share with certain
clients, it believes that its position as a key supplier is not at risk as it has developed
strong relationships with clients. The products that ARIL produces are now part of
the pipeline for its clients and with a difficult situation in Europe and with China not
being a preferred option, ARIL believes that they will maintain wallet share.

 ARIL's stated that they are competitive at the low volume / high complexity product
segment and since a majority of their existing portfolio is in that category they see
reduced pressure from Chinese and other European players.

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Archean Chemicals | BUY | TP 665

 Bromine has seen good traction in offtake in the second half historically, and the
management expects H2FY24 to do well. Overall bromine volumes are expected to
better than those in FY23.

 The management reiterated that volume recovery for SoP is in progress. The
company has started doing trials and should ramp up its production from 8000-
9000 tons currently.

 The company signed a new 2 year contract with Sojitz, for Industrial Salt offtake, at
a 20% premium over historical USD 16-18/tn levels. While this is a small part of the
offtake this shows the pricing premium the company has. The company also
reiterated that they do not want to enter the consumer salt business.

 The Bromine Derivatives product pipeline is on stream with PTA and CBF products
coming on stream in Q4FY24 and BFR coming in Q1FY25. The company expects
70% capacity utilisation in FY26. At full capacity Asset-turns are expected to be 2-
3x. On the margin front the company said that 20-25% Margins on the bromine
derivatives is possible at market prices and if one includes the backward integration
benefits, margins will even higher.

 Overall the company aims for EBITDA Margins at ~ 35-40%. This will also be aided
by the new High-tension line which is coming from the power grid. Eventually at full
use, this should reduce power costs by 30-40%

 On the land lease front, the company has paid the land lease for the next year.
Structurally for the 30 year lease extension, the company has already completed 5
of the 6 stages in the regulatory process and expects to complete the process soon.
Since the land is unsurveyed, it is unlikely the company will face any issues in lease
renewals.

PCBL | BUY | TP 290

 The company has an existing capacity of 770,000 MT with an additional 20,000MT

of specialty blacks capacity expected to come on stream by end of the financial year.
With negligible additions in Europe and North America, PCBL believes that they are
well placed to capture market share especially in Europe. Europe is the largest
contributor to its export business with total export contributing to roughly 30% of
topline.

 Of the total INR 9bn capex, the company expects a total pay-back period of 5 years
with IRR of ~15% and ROCE of 18-20%. Asset-turns are expected to be around
1.5-2x

 The company aims to bring certain high grade super-conductive carbon blacks to
market next year. The company will as a result have to set up some additional
capacities in its existing lines. The company highlighted that Spec-Chem Blacks will
have ~2.5x margins over that of traditional Carbon-Blacks.

 The company highlighted that they recently received patents for Oxidised Carbon
Black, a product with roughly c.INR 100/Kg EBITDA margins. This should further
bolster its specialty blacks product portfolio.

UPL | BUY | TP 800

 The company and the agro-industry at large continue to face pricing headwinds.
The company believes that the North American market will be the last to recover.
Europe and LATAM destocking is done with Brazil expected to recover first. The
domestic India business should do well in Q3FY24 although certain products used in
chillies will see some impact.

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 Of the overall pesticide market, channel inventory is overall problematic in the

Herbicide segment. As a result overall capacity utilisation for UPL's plants is running
at 65%.

 The management believes that FY25 should fare better than the current year thanks
to newer inventory, introduction of newer products and increased pace of
contribution of specialised products.

 On its specialty chemicals segment, the company aims to introduce new chemistries
like Phosgenation and Cyanation soon with the intention to expand the business to
USD 500mn-1bn in the coming years.

 The cost reduction plans remain on track with estimated savings of USD
50mn/100mn in the H2FY24/FY25 respectively. This will primarily be from reduction
in employee costs.

Exchanges

Central Depository Services | HOLD | TP 1,360

 New opportunities: MCA has issued guidelines for companies with ~INR40mn share
capital or Turnover of ~INR400mn to get their shares dematerialised with deadline
ending for same in Sept'24. Company has identified 35,000 companies falling in
this criteria. Further, company (i.e. CDSL) charges ~INR15,000 as one time
processing fees and minimum of INR9,000 as annual charges.

 IRDAI’s decision to make dematerialization of insurance policy mandatory will likely

offer a revenue opportunity for the company. Insurance dematerialization will be
carried out through CDSL Insurance Repository Limited.

 Buoyant capital market conditions have positively impacted market participation

leading to higher transaction charges.

 Company informed about continuous investment in technology leading to increased

technology related expensed tracking newer regulations (i.e. T+1 settlement).

 Company bills annual issuer income on first month of every year based last year
average. Company informed about annual issuer income is revised every 5 year with
last revision being done in 2015.

Hotels

Chalet Hotels | BUY | TP 620

 The Indian hotel cycle is likely to go on for a while due to the demand-supply
mismatch and rising disposable incomes of the middle class. Thus, Chalet is
confident of achieving double digit ARR growth for the next two years.

 Chalet will pay INR 60 psf pm in lease rentals for the warm shell that Mindspace
REIT will provide for the Airoli hotel. Data centres and the Mindspace REIT business
park will be the key demand drivers for this hotel.

 At the Dukes resort currently only 30 rooms are operational. There is significant
renovation happening at this property at the moment. The revenue contribution for
this asset will come from FY25. This hotel presently has an yearly average ARR of
INR 8,000 to 9,000 with stable average occupancy of 75-80%. Chalet do not
expect home stays to be a threat to this resort.
 At its DIAL property which is set to open in FY26, Chalet expect to have more than
100% occupancy on certain days largely due to the airline customers.

 The capex yet to be spent on the under-construction assets stands at INR 18bn (INR
8bn on hotels). Most of this will be funded through internal accruals and debt it
likely to peak out in the next 12 months.
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Healthcare

Biocon | BUY | TP 340

 The company is primarily focusing on Viatris integration which should be completed

by the end of this fiscal, much ahead of their intended timelines. The company is
also committed to resolving regulatory challenges and getting biosimilar approvals;

 The existing biosimilars are performing well in the US and have gained healthy
market share - Pegfilgrastim (19%), Trastuzumab (12%) and Semglee (12%, actual
market share is higher). Shift from Humira to biosimilars is imminent and likely by
CY25 - the initial penetration of biosimilars has been admittedly slow for the entire
market. In Europe, the company has enough scope to improve its share as Viatris
had limited focus;

 The erosion in biosimilars has been 60-80% three years after launch and is in line
with management expectations. The pace of shift in biosimilars partly depends on
the innovator's strategy;

 The pipeline remains healthy (Aspart, Bevacizumab, Aflibercept, Ustekinumab,

Denosumab, etc.) and over the next few years- the company should have a wider
basket of biosimilars;

 The API business was impacted by competition, pricing pressures and inventory
destocking. The generic formulations, on the other hand, has performed well.

Orchid Pharma | NR

 The management is confident of delivering 20-25% Revenue CAGR over the next
few years (excl. PLI);

 The company is also guiding for 100-150bps EBITDAM improvement annually;

 The company has multiple growth levers: (1) capacity expansion; (2) new product
launches in regulated markets; (3) PLI for 7ACA and downstream products; (4) NCE
- Enmetazobactum; and (5) Cefiderocol, which will play out in the next 4-5 years;

 The company is at a land acquisition stage in Jammu (for PLI) and expects an update
by end of this fiscal;

 The company is now debt free. Post takeover, the company has taken several cost
initiatives to improve margins. Strategically, the company is backward integrating
and forward integrating its operations to become an integrated player in
cephalosporins.

Sun Pharma | BUY | TP 1,305

 The company reiterated their FY24 revenue guidance of high single digit;

 R&D guidance has been maintained at 7-8% which also factors in GLP-1 trials
(requires larger patient pool);

 The company's gross margins have been improving due to product mix primarily
driven by specialty;

 In India, the company expects to outperform IPM. SUNP is not focusing on trade
generics at present. Nidlegy could surprise positively and remains a promising drug.
Recently, the company has expanded its field force by 20% which has impacted
near-term productivity;
 Specialty is a key driver and is expected to grow faster than overall company
growth. Deuruxolitinib is expected to be a meaningful growth driver. SUNP is also
focusing on improving Winlevi volumes. The company does not expect an adverse

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impact of Stelara biosimilars on Ilumya's growth but continues to monitor Humira

biosimilars;

 The company is focusing on strengthening R&D capabilities. The Ilumya PsA trials
had been delayed, as indicated earlier. There is ample of opportunity in skin cancer,
skin care and eyecare. Given the strong cash balance, the company is looking for
acquisitions/ in-licensing deals to drive future growth;

Industrials

Harsha Engineers International | BUY | TP 460

 Witnessing healthy growth in domestic and US market while business is likely to be

impacted in China and European market due to slowdown.

 Initiated Phase-1 of greenfield capacity expansion plan with capex of c.INR 1bn.
New facility will be focusing on bronze bushings, large size steel bearing cages and
stamping components.

 Romania: Slowdown in demand for industrial products impacted Romania business,

along with continued fixed overheads impacting profitability. Romania is likely to
report negative bottom line in FY24.

 China: Demand for cages from key customer was lower than normal level due to
softening Chinese market. However demand is likely to improve from 3QFY24
onwards and reach to normal level by 4QFY24.

 Bronze Bushing revenue is likely to reach INR 400mn in FY24 vs. INR 250mn in
FY23.

PG Electroplast | NR

 PGEL is currently working with 60+ major brands across product categories such as
AC, washing machine and TV.

 Indian AC market is only 7% penetrated, which offers huge potential for growth
going forward.

 PLI scheme in AC segment would result in OEM looking for in-house

manufacturing, which can impact growth momentum for contract manufacturers.

 PGEL entered into 50:50 JV with Jaina group for manufacturing of TVs. PGEL
targets to manufacture 60-70mn TVs in FY25E in the JV.

 Outsourcing market accounts for 45-50% of total AC manufactured in India.

Infrastructure

Kalpataru Projects International | BUY | TP 750

 Guidance: Revenue growth: 25% to c.INR 180bn; EBITDA margin: 8-8.5%; PBT
margin: c.4.5%; order inflows: INR 250bn (consolidated). KPIL will continue to
invest in newer businesses and geographical diversifications which will build
capabilities but cap margin expansions.

 Support to Road BOT assets: KPIL infused INR 450mn in 1HFY24 and will infuse INR
450mn in 2HFY24 (INR 700mn in FY23) for principal repayment in BOT assets. Road
assets are PBT positive currently given the improvement in toll collections.
 Supply chain constraints: KPIL is seeing supply constraints emerging on the
substation side while on the transmission side situation is far better. The company
does not see labour supply to be a big challenge.

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 Domestic T&D pipeline remains strong: Project pipeline of c.INR 700bn of which
management expects at-least 50% to be bid out within FY24E

 Fasttel & LMG performance: Fasttel performance is improving and expects it to be

profitable in FY25E as legacy projects are likely to get completed in Mar-24. For
LMG, it expects the margins to be lower in FY24 as PY included execution of certain
high margin orders. Margins are likely to improve in FY25E.

KNR Constructions | BUY | TP 330

 FY24 guidance: Revenue: c.INR 41-42bn in FY24 (FY23: INR 37bn); Order inflows:
INR 30-40bn (YTD: nil).

 Irrigation: KNR expects to win three irrigation projects worth c.INR 15bn (L1 in 2
projects). Irrigation receivables moderated from INR 6.9bn in Aug-23 to INR 6.5bn
currently.

 Bid pipeline: Highways: INR 900bn but getting delayed; Railways: INR 32bn+ (tunnel
+ structural works); Mining : INR 120bn (12 year project); KNR is also bidding for
metro projects.

 Investments in HAMs: Pending equity commitment stands at INR 5.35bn to be

invested over FY24-27E.

 Monetization: KNR is in advance talks with Cube Highways to monetize 4 HAM

assets. Oddanchatram HAM asset which has received PCOD is targeted to be
monetized by Mar-24 while remaining 3 assets would be monetized post
completion of construction in FY26.

NCC | BUY | TP 195

 FY24 guidance maintained; likely to surpass revenue and order inflow guidance:
Revenue: 20% YoY growth; EBITDA margins: 10.2%; PAT margins to improve by
50bps YoY to 4.5%+. Consolidated order inflows: INR 260bn+ (YTD inflow: INR
204bn).

 Opportunities: NCC sees strong opportunities in Buildings, Electrical, Water Supply

(JJM), Irrigation verticals. It also sees smart metering also as a very big opportunity
with c.250mn to be installed across the country under the RDSS scheme. NCC has
already bagged 3 smart metering projects worth INR 80bn.

 Vizag deal update: NCC received INR 200mn of the INR 500mn tranche of Sept-23
(remainder INR 300mn to be received in Nov-23). Remaining tranches in Dec-23 and
Mar-24 of INR 500mn each are expected to be received on time.

 Equity commitment for smart metering projects stands at INR 4-5bn (NCC’s plans to
bring a 50% partner) to be invested over FY25-26.

 TAQA arbitration: NCC indicated that amicable settlement proceedings are going
on and the outcome is expected soon. It does not expect any big cash outflow.

Welspun Enterprises | NR

 The company is focusing on asset light model and targets to sell assets as soon as it
stabilizes and will reinvest money in other projects.

 It remains selective while bidding for projects, with visibility to generate targeted
returns (18-19% IRR). Recently sold five assets yielding an average IRR of c.19%.
 Water segment is a growth engine for the company and the margins are slightly
better than the road projects. Within the water segment, company has capabilities
in a) water & sewage treatment and b) water distribution projects.

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 It acquired Michigan Engineers, one of the India’s leading EPC player in the niche
segments of micro tunneling and pipeline rehabilitation which offers huge
opportunity going forward.

Internet

CarTrade Tech | BUY | TP 1,010

 CarTrade's competitive advantage stems from negligible customer acquisition costs,

with 80-90% organic growth. CarTrade is emerging as the preferred car search
platform, allowing users to conduct research on the app without requiring any
personal information.

 The parent company has invested heavily in building a brand value for OLX in India,
while the amount paid for acquisition by the company is comparatively minimal. The
acquisition includes a crucial 20-year brand license.

 OLX Classifieds business has historically grown at a CAGR of ~20%. On a

conservative basis, this can be the minimum expected growth going forward, with
further guidance awaited as synergies come into effect.

 Although Q3FY24 will be impacted by one time costs, expected synergies are
expected to flow in from the next calendar year.

 Initially, the strategy was to improve the unit economics of the OLX Transactions
business. However, on recognising that reducing marketing costs wouldn't make
the unit economics profitable, the Company took the bold step of shutting down
this business within a quarter of its acquisition.

 OLX business exclusively deals with used items, whereas CarWale involves ~85%
new auto transactions, creating a complimentary dynamic between the two
businesses. While OLX used car dealers are already monetized, this acquisition is
expected to enhance negotiation power for CarWale when setting prices with
dealers. OLX has a greater quantity of users, while Carwale attracts more quality
users who actively visit a dedicated car portal. In terms of number of used car
dealers, OLX has 8,000, whereas CarWale has 1,500.

Swiggy | NR

 MTU expansion to be a key lever of GOV growth, Food delivery profitable: Swiggy
mentioned that it expects its food delivery business growth to be driven an increase
in MTU base. The company believes many geographies and consumer segments are
still underserved that supply addition is also likely to be healthy. This should ensure
an increase in its MTU base. The company said that it had turned profitable after
factoring in all corporate costs attributable to the business (but excluding ESOPs) in
Mar'23 led by a sharp focus on innovation and strong execution.

 The company believes it has taken tremendous strides towards improving the end-
customer experience (basis industry-best NPS scores, repeat and retention rates),
restaurant partner experience and delivery partner experience.

 Peak of investments in Quick Commerce business over: Swiggy mentioned that it

had pioneered the Quick Commerce category 3 years back as it believed that it
offered a strong consumer proposition and considered it strategically important.
This led to the company making disproportionate investments in Instamart in the
past. Having reached a scale wherein Instamart is now one of the leading quick
commerce businesses globally, it believes the peak of investments in the business is
over and says that it has taken strong strides towards achieving profitability in the
business.

 New investments: Swiggy mentioned that the Dineout business (an acquired
business) was now fully integrated, and is now a leader in the dining out category.

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Further, the company claimed that its core strength is the ability to run low-
investment but high-value experiments.

Zaggle | NR

 Zaggle is a leading player in spend management in India. The Company interacts

and interfaces with Customers (i.e., businesses) and end Users (employees which
demands a robust technological capability to foster seamless interactions across
different channels among different stakeholders that engage on the company's
platform. The Company acquires users through the customers that significantly
reduces its user acquisition cost.

 Company charges a per user per month fee to the Customer for providing software
service and also earns a spend-based fees on the transactions carried out by the
users of Zaggle issued cards at offline or online merchants.

 Company has three major products: 1) Propel, a corporate SaaS platform for
channel rewards and incentives, employee rewards and recognition. 2) Save, which
offers expense management solution for business spend management facilitating
digitised employee reimbursements and tax benefits. 3) Zoyer, spend management
platform with embedded automated finance capabilities.

 Though company has many peers in each individual product, it is the only company
to provide integrated solution across all products. Company expects Zoyer business
to pick up from this year. Company has been working on use cases of creating a
single centralized system to manage all vendor related payments to drive efficiency
and automation.

 The company has more than 50mn prepaid cards issued in partnership with banking
partners and more than 2.27mn users served, as of Mar'23.

Zepto | NR

 Zepto mentioned that the buying pattern of Indians is concentrated in 'High

frequency, low ticket' items, with a preference for fresh products. Proximity is one
aspect that offline supermarkets have not managed to solve for due to high
movement costs and low storage space in Indian households. This encourages
consumers to shop more frequently from local options. Through Quick Commerce,
Zepto believes it can not only solve proximity in grocery but also address Indian
consumer behaviour of top up and high frequency purchases.
 Zepto's focus of Operating excellence: Zepto's key focus has been on six sigma style
operating excellence. Procurement function is being run by best-in-class
professionals, only one dark store (out of 300) has been shut down since inception,
they have streamlined the process to such an extent that product gets packed in 90
seconds in the dark store. Even with lowest delivery cost in the industry the
utilisation rate of delivery partners is 15% higher than the industry benchmark.

 Company's delivery partner structure is more similar to Domino's style than other
grocery delivery apps in which delivery partners work in fixed shifts. Company uses
mostly bicycles for delivery which helps in 30-40% cost saving as there is no fuel
cost.

Zomato | BUY | TP 155

 Gold program: Gold subscriber base for the company increased sharply to 3.8mn
users in 2QFY24 from 2mn is previous quarter. The Gold subscribers now contribute
c.40% to Zomato’s food delivery GOV vs. 33% 1QFY24. Going ahead, the
company expansion Gold subscriber base expansion to be relatively slower.

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 Food delivery profitability: Company continued to suggest 4-5% EBITDA as % of

GOV as the sustainable margin for the business. It noted that the expansion in the
margins was slower in 2Q due to sharp increase in fixed costs but expects there are
enough revenue as well as cost side levers to ensure that the sustainable margin
target is achieved over the medium term.

 Blinkit has significant growth runway: Blinkit has been seeing steady adoption since
its acquisition 5 quarters back. In cities where Blinkit has an overlapping presence
with Zomato’s food delivery business, the former’s GOV was 47% of the latter’s
GOV in those cities in 2QFY24. Company expects the adoption trends to remain
strong over the near to medium term on account of significant underpenetration.

 Blinkit to turn profitable by 1QFY25: Company continued to guide that its Blinkit
business will break-even by 1QFY25 supported by a mix of expansion in take-rates
and expectation of operating leverage at both store as well corporate level..

Media

Saregama India | BUY | TP 450

 Expect more streaming platforms expected to move behind paywall: Out of 9 key
music streaming platforms, 6 have moved behind the paywall as of now, and the
other 3 platforms should also transition from free to paid model in the near to
medium term.

 Impact of music OTT's transition to paywall transitory in nature: The transition of

music streaming platforms to paywall means 1) music labels will eventually move
away from the concept of minimum guarantees with streaming platforms (only
three platforms follow this model now) and 2) end consumers initially moving to
free platforms like Youtube and then eventually getting nudged to paid
subscriptions. While this could have near-term impact on revenue, over a slightly
longer period, the transition is likely to lead to a sharp improvement in yields per
stream for music labels. As per Saregama management estimates, this could lead to
150-300% improvement in revenue from music labels. We, therefore, expect the
current impact of transition to be transitory for music labels.

 Pocket Aces acquisition: While Saregama's retro music content positions it strongly
in the older demographic, the acquisition of Pocket Aces has granted the company
access to 100mn+ subscribers, mostly within the age bracket of 15-25 years, along
with 120+ influencers. The overnight expansion of follower base enhances
Saregama's ability to market and distribute content to a broader consumer base,
establishing it a preferred choice for producers.

 Guidance: Pocket Aces is anticipated to accelerate consolidated revenue growth to

28% in 3 years. Despite Pocket Aces yielding a lower margin, the management
reaffirmed its consolidated EBIDTA margin guidance of 32- 33%.

Metals and Mining

Jindal Steel & Power | BUY | TP 780

 Management informed about 2Q being seasonally weak quarter, with demand

expected to ramp-up from 3Q. Also company expects prices to increase tracking
increase in construction activities.

 Company informed about increase in import of steel in last 3-6 month due to
expiration of BIS import certificate.
 Company invests in projects with RoCE of 18-20% throughout cycle.

 Company plans to increase is steel making capacity from 9.6mtpa to 15.9mtpa by

FY26 driven by 6.3mtpa expansion of Angul plant.

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 Capex: Company intends to spend ~INR310bn over span of 3-4 years for increasing
its capacities of which company has incurred INR93bn till 2Q.

 Major projects: (i) Company has already commenced phase-I of pellet plant (capacity
of 6mtpa) and is likely to commence phase-II by 4QFY25 taking total capacity to
21mtpa (ii) On HSM (hot strip mills) company plans to commission plant by 3QFY24
(iii) Further company has increased its BF-II expansion plan from 4.25mtpa to
4.6mtpa (iv) Company plans to establish 200+kms of slurry pipeline of which is likely
to reduce transportation cost of iron ore and is likely to commence in 1QFY25.

 The company’s coal security is expected to improve post commencement of coal

blocks - Utkal C, Utkal B1, B2 and Gare Palma IV/6. Company has successfully
commenced production from Utkal C and Gare PalmaIV/6.

 Mines Capacity: Utkal C: 3.37mtpa; Gare Palma: 4mtpa; UtkalB1 and B2: 8mtpa
(Combined). Company expects captive consumption of coal to increase to 50%
going ahead.

JSW Steel | BUY | TP 830

 FY24 guidance: Sales volume 25mtpa

 Company plans to increase its capacity from 28.2mtpa to 37mtpa by FY25. Within
plants company plans to increase 5mtpa capacity in Vijay nagar and 1.5mtpa in
BPSL. Further over long term horizon company desires to increase its capacity to
50mtpa by FY31s through brownfield growth at Vijayanagar, Dolvi and BPSL.

 Capex: company plans to incur INR520bn capex for expansion which is likely to be
funded through internal accruals

 Company expects India's finished steel demand to increase to 132m tons by FY24
vs. 120m tons in FY23.

 Company informed about supplying 60% of steel for Mumbai-Ahmedabad bullet

train and has also supplied steel to Narendra Modi stadium.

 Company is targeting to increase share of VASP to >50%

 Company has 4 iron ore mines in Odisha and 9 mines in Karnataka. Company is in
process of bidding for newer mines and plans to increase its captive consumption to
42-45% and eventually to 60% in long term.

Vardhman Special Steels | NR

 Company started its business ~50 years ago in Faridabad with ~50,000 tons
capacity and has gradually ramped up its production capacity. During its journey
company has seen many downturns, however was able to get back on track post
announcement of partnership with Aaichi steel in 2019 granting access to Japanese
OEM's.

 Currently company has ~240ktpa rolled bars making capacity with plans to increase
it to ~300ktpa by FY26-28.

 Company is solely catering to Japanese OEM's in PV segment and does not supply
to Tata and Mahindra and Mahindra.

 Company procures ~6,000 tons/month scrap metal from Maruti's Gujarat plant and
recycles it into various finished products. Company is sole approved vendor for this
process.
 Company plans to invest ~INR3bn for expansion of rolling mill capacity with first
phase of investment to commence in Dec'23.

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 Company's current carbon footprint stood at 0.8 vs. 2.5-3/ ton earlier. Further,
company plans to reduce it to below 0.5 and is investing in solar power plant for
the same.

Oil and Gas

Castrol India | NR

 Management expects lubes consumption to grow 3-4% annually in India while it

aims to achieve annual volume growth of 6-8% in its core segment of lubricants.
Management expects rise in competition with growth in demand for lubricants in
India in the upcoming years.

 Management shared that company is continuously making diversification efforts: a)

launched Auto Care products (chain cleaner, stain remover etc.); b) operating 400
Castrol Auto service centres for cars; and c) entered into partnerships to offer key
mobility services.

 Management also highlighted few digital efforts to boost sales. Among them, their
propriety application “Castrol Fast Scan” helped them push their products to
mechanics and workshops by incentivising them on purchase of their products.

 Management said that it has first mover advantage in EV space as it supplies its EV
fluids products to major EV OEMs in India and +50% of the EV makers globally.

 Management also said that company has benefitted with its partnership with Jio-BP
which enables it to exclusively sell its lubricants at Jio-BP’s retail outlets.

Petronet LNG | HOLD | TP 210

 In regards to its recently approved INR207bn Petchem project of 750 KTPA of PDH
& 500 KTPA of PP plant including propane and ethane handling facility at Dahej:

o Reiterated dividend payout won’t be impacted due to this project as it involves

only 30% of equity contribution (out of project cost of INR 207bn) and that too
spread over the 4-year period, which seems not much significant given its
current strong cash position (of INR 78bn).

o Management clarified that the project cost of INR 207bn is higher (than earlier
guidance of INR 140bn) as it extensively includes all the soft costs like IDC
(interest during construction), working capital margin money, and possible USD
appreciation impact etc.
o Management didn’t share much detail around the fixed operating cost or
margin assumptions due to sensitivities of the project as various contracts with
customers, suppliers and various sourcing contracts, shipping contracts, etc. are
yet to be finalised. However, said IRR from this petchem project exceeds their
hurdle rate (Equity IRR) of 16%.

o Management said various risk mitigation steps are being taken to offset the
cyclical nature of Petchem business; like signing a take or pay contract (for
90% of its volume) with Deepak Phenolics Limited (DPL) for off take of 250
KTPA of Propylene and 11 KTPA of Hydrogen for a period of 15 years.

o Added that there is no rethinking on rolling back of petchem project capex as

of now.

o Re-iterated PLNG’s advantages and synergies in this project as : a) saving in

jetty cost b) saving in energy cost of INR 1.2bn p.a. as plant is located near its
regas plant; c) many utilities are common with Dahej regas terminal and hence
no additional cost needed for petchem project; d) 15 year tie-up with customer
for part of the volume.

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 Management expects Qatar long term LNG contract renegotiation (for extending
supply beyond 2028) is likely to happen soon; volume will remain same but pricing
will be negotiated. This will again be signed back to back with its off-takers, as was
the case earlier so that PLNG’s doesn’t take any volume/price risk.

 On recoverability of “Use or Pay” income of INR 12.7bn on account of lower

capacity utilization for regas service contracts, management said it is still pursuing
with the customers and hope some resolution is achieved soon.

 Dahej both tank is on target and should be completed by June 2024.

 Dahej jetty tender to be issued soon, construction timeline is 30-36 months.

 Management re-iterated that GAIL expects Kochi-Bangalore pipeline to be

operational by Nov’2024, which will connect to main gas pipeline grid and hence
boost Kochi utilization.

Ports and Logistics

Gujarat Pipavav | HOLD | TP 140

 Management is positive on renewal of concession agreement valid upto Sep’28.

Management expects agreement to renew for at least 20 years. It indicated
likelihood of visibility on policy front by end CY23 or early CY24.

 Currently royalty payments come to around 3-3.5% of revenue. While the

management did not rule out an increase in royalty rates for Gujarat based ports
(given the infrastructure is already developed), it does not see royalty rates
anywhere closer to major port terminals given a) the concessionaire has to maintain
the infrastructure (port, evacuation, marine including dredging), and b)
government's intent is more on investments and promotion of ports rather than
maximising revenue sharing.

 Capex of new liquid berth is estimated to be INR 7.2Bn, which will be funded
through internal accruals. New liquid berth would be operational from Q2FY26.

JSW Infrastructure | NR

 Company handled volumes 93 mn ton in FY23 and 49mn ton in 1HFY24, expect 2H
volumes to better by 7-8% YoY. 2H volumes are always better since Q2 is
impacted by rains.
 Volume mix to improve in favour of liquid and container from bulk currently over
medium term.

 The company acquired CTO license from Pristine with an intent to get into CTO
business. Further, the company will also be looking for inorganic opportunity in CTO
business.

 Received the letter of award for developing the port at Keni. Expect few more
approvals to follow. The Keni port is expected to commission over 4-5 years. The
company will initially will start with capacity of 35mn ton, which can be further
expanded to 65mn ton.

 Company’s UAE subsidiary has acquired Marine Oil transport Corp, along with its
Fujairah Branch at an acquisition cost of USD 187mn. The acquired company is in
business of Liquid storage tankages situated in Fujairah Oil Industry Zone with a
capacity of 465,000 CBM.
 The management has guided for capex of INR 30bn and INR 41bn for Jatadhar
phase I and Keni phase I respectively.

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JM Financial India Conference 2023 22 November 2023

Power & Utilities

SJVN | BUY | TP 67

 Capacity addition: The management has guided for 10GW capacity addition by
FY26 (1.5/5.2/3.3 GW in FY24/25/26) which comprises Hydro, Thermal and
Renewable projects.

 RE capacity addition: Company has 8 solar projects under construction and is

expecting to add 8 more in the next six months. Company plans to add 1.5GW
Renewable capacity every year.

 900 MW Arun-3 Hydropower project: The company is developing Arun-3 Hydro

Electric Project (4 x 225 MW) located on River Arun in Nepal. The Project is run-of
the-river scheme with 4 hours peaking and is designed to generate 3924 MU
energy annually in a 90% dependable year. Management expects it to get
commissioned in mid-FY25.

 1,320 MW Buxar thermal plant: The first unit of the plant is expected to get
commission in Jun'24.

 PSP projects: SJVNL is targeting a 5GW capacity (3.5 GW in Maharashtra) of PSP

projects over the next 7-8 years.

 Capex: The management has guided about INR 100bn capex for the year (INR
120bn for FY26E) out of which INR38bn was used in H1FY24.

 Renewable Energy Implementing Agency (REIA): The company is focusing on RE

business as REIA and is targeting bidding of 10GW of projects every year as per
bidding trajectory of MNRE. Recently, it has concluded the e- Reverse Auction for
supply of 1,500 MW Firm and Dispatchable Power from ISTS- connected (RE) power
projects with energy storage system under TBCB. The discovered tariff varied
between INR 4.38 /kWh to INR 4.39 /kWh. The company would get a trading
margin of INR 0.07 /kWh.

Torrent Power | HOLD | TP 685

 Business Focus: Currently, Renewable projects of 953 MW are under development.

The management is focusing on hybrid RE projects rather than plain vanilla
solar/wind because of moderate competition and better margins.

 New Renewables projects: Company signed 25 years PPA of 300 MW with TPLD
and 300 MW with SECI at INR 2.22/unit and INR 2.94/unit respectively. The 175
MW of projects are under development for sale in merchant market. C&I business is
growing, with 191 MW (13 MW commissioned) under development.

 Merchant Sales: The company expects merchant demand to remain elevated during
summer and peak winter. During 2QFY24, it sold 272 MU of electricity in merchant
market at an average tariff of INR 10-11/ kWh.

 T&D loss reduction: During 2QFY24, the company was able to reduce 2% of T&D
losses at SMK. It is targeting a similar reduction going forward over the next few
years.

 Ahmedabad license: The license for Ahmedabad which is expiring in FY25 will be
auto-renewed till FY2050 (next 25 years) as per the new regulation

 Generation from gas-fired plants: Company saw significant improvement in

generation from gas-fired power stations resulting in better PLFs- 1147.5 MW
Sugen (40%/7% in 2QFY24/2QFY23); 382.5 MW Unosugen (3%/0% in
2QFY24/2QFY23); 1200 MW Dgen (3%/0% in 2QFY24/2QFY23). Management
expects this trend to continue.

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JM Financial India Conference 2023 22 November 2023

Real Estate

Brookfield India Real Estate Trust | BUY | TP 280

 Demand for SEZ spaces are weaker and thus vacancies in this segment is higher.
Furthermore, there is significant difference in rentals in SEZ and Non-SEZ spaces,
which has negatively impacted demand for SEZ units.

 Occupancies have bottomed out and from Apr’24 it should start inching up.

 Management estimates once occupancies reach pre-Covid levels (c. 95%) it’s NOI
will increase from the current levels of INR 18bn to INR 21bn.

 BIRET estimates that for conversion of SEZ units to Non-SEZ ones, it will have to
surrender ~INR 600psf worth of tax benefits availed under SEZ concessions.

 Capital reductions of the SPVs will be completed in the next 12-15months and will
not change the tax neutral at each of these SPVs.

Embassy Office Parks REIT | BUY | TP 340

 Embassy REIT in their non-SEZ portfolio has an occupancy of 87%. Bangalore

continues to do well while its Pune and Noida assets remain a drag.

 Pune has been weak for Embassy because of its location in Hinjawadi (Western
Pune) which is an IT/IeS driven market. Most BFSI companies prefer eastern Pune
despite rentals being higher there.

 Embassy estimates that for conversion of SEZ units to Non-SEZ ones, it will have to
surrender ~INR 400psf worth of tax benefits availed under SEZ concessions.

 Post amendments in SEZ reforms, Embassy remain confident on easily getting area
at Manyata denotified and leased within 3-4 quarters.

 The demand for Embassy’s SEZ spaces is coming from existing tenants only. These
tenants are willing to pay non-SEZ rentals for these spaces because of the tax
benefits they are receiving.

Sugar

Balrampur Chini | BUY | TP 490

 ISMA released it preliminary projections for SS24, it expects sugar production of

33.7mn ton (before diversion) and domestic consumption of 27.5mn ton.

 Ethanol blending program trending well, OMCs floated tender of 8.25bn litres to
meet the blending target of 15% in ESY24 (Nov'23-Oct'24). Industry has submitted
bids for 5.65bn litres, of this 60% is sugar based and remaining grain based. The
OMCs are estimated to contract 3.65bn ltr for next 6 months. This implies diversion
of around 2.5mnt

 Sugar realisation (ex-mill) at around INR 41/kg currently. Similarly, international

prices remain strong due to limited supply from Brazil.

 The company is optimistic on cane visibility for next 2 years and guides for 11.5mnt
of crushing for FY24 and expects the gross recovery rate to improve by 10bps YoY.

 Currently the company is working of 4-5 varieties of cane. The variety 238, which
was impacted by red rot disease and led to lower recovery is expected to contribute
less than 10% in FY24 (as compared to over 90% in SS21).
 The company does not see any challenge on demand front to achieve 15%
blending level.

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JM Financial India Conference 2023 22 November 2023

Textile

Welspun India | BUY | TP 185

 FY24 Guidance: Revenue: 10-12% YoY growth; EBITDA: ~15%.

 Capex Guidance for FY24: INR3bn; company plans to incur maintenance capex of
~INR1-1.3bn in FY25.

 Company expects RoCE to reach 15-17% by FY25.

 Current utilization in advanced textile segment stands at ~50%.

 Company informed about ~15,511 touch points for its home textile products (large
part of them being MBO's) and is targeting it to increase it to 50k in coming 3-4
years. Also company is present in all stores of Dmart, IKEA and Home Centres.

 Domestically organised home textile market is expected to increase to ~INR80-90bn

vs. ~INR50-60bn in FY22 implying CAGR of 12%. Company expects to grow 3x of
domestic market growth, tapping on huge potential in unorganised market through
launch of diversified products across price ranges aided by shift from organised to
unorganised segment.

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JM Financial India Conference 2023 22 November 2023

Valuation Table
Coverage Universe 22-Nov-23 Price P/E based valuation

Mkt Cap 12M (%) EPS (Rs) EPS Gr (%) PE (x) PEG EV/EBITDA (x) ROE (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY22A FY23A FY24E FY25E 23-25 FY23A FY24E FY25E (x) FY22A FY23A FY24E FY25E FY22A FY23A FY24E FY25E
Airlines (Ashutosh Somani, ashutosh.somani@jmfl.com, +91-22-66303083) `
Indigo HOLD 1,005 2,604 2,460 -5.5 -159.8 -7.9 160.2 151.2 NA NA 16.3 17.2 NA NM NM 8.8 8.6 0.0 0.0 0.0 NA
Automobiles (Vivek Kumar, vivek.kumar@jmfl.com, +91-22-66303019)
Ashok Leyland* BUY 524 178 200 12.1 0.1 4.4 8.4 10.7 55.4 40.4 21.1 16.7 0.3 55.2 18.8 12.1 10.4 0.4 16.4 26.7 27.8
Bajaj Auto* BUY 1,664 5,752 5,450 -5.2 162.5 198.9 244.5 281.2 18.9 28.9 23.5 20.5 1.1 27.2 21.6 17.1 14.5 18.1 21.6 25.7 26.2
Eicher Motors* HOLD 1,050 3,834 3,650 -4.8 58.0 95.9 132.7 134.3 18.4 40.0 28.9 28.5 1.6 45.6 27.7 21.7 20.2 15.5 22.1 25.2 21.0
Hero MotoCorp* BUY 682 3,414 3,900 14.2 123.8 145.6 200.4 227.8 25.1 23.4 17.0 15.0 0.6 18.5 16.2 11.9 10.2 16.0 17.9 22.9 23.9
Mahindra & Mahindra* BUY 1,919 1,543 1,725 11.8 42.4 66.6 91.8 96.3 20.2 23.2 16.8 16.0 0.8 25.6 16.8 13.4 11.7 14.0 19.6 23.0 20.2
Maruti Suzuki* BUY 3,170 10,495 11,750 12.0 124.7 266.5 406.4 453.4 30.4 39.4 25.8 23.1 0.8 48.2 24.7 16.5 14.5 7.1 14.1 17.8 16.1
Tata Motors BUY 2,498 681 730 7.2 -28.2 2.2 31.8 45.2 358.2 NA 21.4 15.1 0.0 10.3 8.1 5.7 4.8 NA 1.8 24.0 27.1
TVS Motor* BUY 826 1,739 1,650 -5.1 19.4 31.4 43.6 56.0 33.6 55.4 39.9 31.0 0.9 42.9 31.8 24.1 19.3 20.5 27.4 30.0 30.1
Auto Ancillaries (Vivek Kumar, vivek.kumar@jmfl.com, +91-22-66303019), (Ronak Mehta, ronak.mehta@jmfl.com, +91-22-66303125)
Apollo Tyres BUY 267 421 475 12.9 10.1 17.0 29.6 31.0 34.9 24.7 14.2 13.6 0.4 12.7 9.7 7.0 6.4 5.6 8.8 13.8 12.9
Bharat Forge BUY 511 1,097 1,150 4.9 21.2 12.3 27.8 39.0 77.9 88.9 39.5 28.1 0.4 26.7 31.0 20.6 16.6 16.5 8.7 18.0 21.8
Ceat Ltd BUY 85 2,098 2,750 31.1 20.8 54.3 158.9 182.1 83.2 38.6 13.2 11.5 0.1 15.1 11.0 6.4 5.7 2.6 6.5 17.3 17.2
Motherson Sumi Wiring India BUY 261 59 70 18.4 1.5 1.1 1.4 1.8 27.8 53.6 41.0 32.9 1.2 25.2 33.5 26.5 21.8 52.2 39.8 43.6 45.0
Samvardhana Motherson International BUY 594 88 130 48.2 1.4 2.4 4.3 6.4 65.5 37.3 20.6 13.6 0.2 15.0 11.3 8.6 6.7 5.6 7.4 12.2 16.0
SJS Enterprises BUY 20 632 825 30.5 18.1 22.1 27.6 37.2 29.7 28.6 22.9 17.0 0.6 20.4 18.1 13.2 9.8 16.3 17.0 17.6 19.4
Sona BLW Precision Forgings BUY 339 578 700 21.1 5.5 6.8 9.2 12.7 37.1 85.6 62.5 45.6 1.2 60.6 48.6 35.0 26.4 19.6 18.4 21.7 25.0
Suprajit Engineering BUY 51 370 420 13.4 11.7 11.0 12.5 18.2 28.8 33.7 29.6 20.3 0.7 19.3 16.9 16.3 12.2 15.6 13.2 13.4 17.1
Uniparts India BUY 25 544 750 37.8 37.4 45.4 37.1 49.2 4.1 12.0 14.7 11.1 2.7 9.7 8.3 9.2 7.3 27.2 27.0 18.8 21.7
Building Materials (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
Century Plyboards* BUY 141 636 710 11.6 14.3 17.8 16.5 20.7 8.0 35.8 38.7 30.7 3.8 26.4 24.7 26.3 20.1 22.4 22.8 17.7 18.8
Cera Sanitaryware* HOLD 111 8,500 9,000 5.9 118.1 164.1 206.0 240.2 21.0 51.8 41.3 35.4 1.7 50.0 38.7 31.8 26.5 16.3 19.6 21.3 21.5
Greenply Industries* BUY 26 207 300 45.0 7.5 8.5 3.5 9.9 8.2 24.5 59.4 20.9 2.6 18.4 18.8 15.3 10.3 18.9 17.6 6.5 16.6
Greenlam Industries HOLD 76 596 430 -27.9 7.8 9.4 11.5 13.9 21.4 63.1 51.8 42.8 2.0 40.2 34.9 28.1 20.9 15.3 14.8 14.2 15.2
Greenpanel Industries BUY 42 340 420 23.4 19.0 20.2 16.0 16.8 -8.8 16.9 21.3 20.3 NA 11.2 9.3 13.5 12.6 26.5 22.6 15.4 14.5
Kajaria Ceramics BUY 201 1,261 1,490 18.2 23.7 22.2 30.9 39.0 32.6 56.8 40.8 32.4 1.0 32.4 33.7 24.9 20.1 18.9 15.8 19.9 22.4
Prince Pipes and Fittings BUY 76 685 900 31.4 22.4 19.1 19.3 26.2 17.2 35.9 35.4 26.2 1.5 18.4 29.8 20.8 15.7 21.4 16.0 14.9 18.0
Somany Ceramics BUY 28 657 880 33.9 20.9 13.4 27.3 38.3 69.0 49.0 24.1 17.2 0.2 15.8 17.5 13.2 10.2 12.8 7.5 14.0 17.6
Chemicals (Krishan Parwani, krishan.parwani@jmfl.com, +91-22-66303073)
Anupam Rasayan HOLD 101 938 980 4.4 15.1 16.9 17.8 25.5 23.0 55.6 52.8 36.8 1.6 32.7 24.2 23.0 18.5 9.1 8.8 7.3 8.7
Aether Industries BUY 118 887 1,130 27.4 8.8 10.5 12.1 18.1 31.3 84.7 73.5 49.1 1.6 67.3 58.8 50.1 33.7 38.8 16.0 9.4 10.6
Archean Chemical Industries BUY 64 518 665 28.3 19.6 34.6 28.9 44.6 13.6 15.0 17.9 11.6 0.9 12.3 8.7 11.5 7.1 NA 45.2 22.1 26.6
Clean Science and Technology BUY 143 1,349 1,790 32.8 21.5 27.8 23.4 32.5 8.1 48.5 57.5 41.5 5.1 46.9 34.8 40.4 28.5 34.9 33.2 22.0 24.3
Deepak Nitrite BUY 291 2,133 2,340 9.7 78.2 62.4 51.5 76.1 10.4 34.2 41.4 28.0 2.7 18.0 22.3 25.6 17.8 37.5 22.9 15.8 19.6
Fine Organic Industries SELL 130 4,240 3,185 -24.9 81.8 192.6 119.3 102.6 -27.0 22.0 35.5 41.3 NA 36.8 16.0 23.0 25.7 29.5 47.6 22.0 16.3
Galaxy Surfactants HOLD 100 2,824 2,650 -6.2 74.1 107.5 90.8 95.2 -5.9 26.3 31.1 29.7 NA 25.7 17.7 19.2 17.9 18.3 22.0 15.8 14.2
India Pesticides HOLD 34 295 200 -32.1 13.8 12.5 10.6 11.8 -2.8 23.6 27.9 25.0 NA 15.4 16.9 18.7 16.4 30.7 20.3 14.6 14.2
Navin Fluorine BUY 179 3,610 4,725 30.9 53.1 75.7 76.4 107.0 18.9 47.7 47.3 33.7 1.8 50.2 33.8 32.7 24.6 15.1 18.6 16.2 19.7
PCBL BUY 92 243 290 19.4 11.3 11.7 12.9 13.6 7.8 20.7 18.9 17.8 2.3 14.9 13.8 11.5 10.5 18.7 16.2 16.3 15.6
PI Industries BUY 554 3,649 4,295 17.7 55.5 80.4 100.0 113.3 18.7 45.4 36.5 32.2 1.7 46.8 33.9 26.8 22.5 14.7 18.4 19.1 18.0
SRF Limited BUY 692 2,333 3,040 30.3 63.8 73.0 59.0 77.3 2.9 32.0 39.6 30.2 10.3 22.6 20.5 22.7 17.9 24.5 22.9 15.7 17.8
Tatva Chintan Pharma Chem HOLD 34 1,473 1,405 -4.6 43.3 21.0 19.9 35.3 29.7 70.2 74.1 41.8 1.4 29.6 59.0 34.9 23.9 30.0 9.9 7.4 10.7
UPL Ltd. BUY 425 566 800 41.4 51.2 48.6 35.4 50.5 1.9 11.6 16.0 11.2 6.0 7.0 6.4 7.0 6.1 17.2 13.6 8.8 11.5
Consumer Durables (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
Bajaj Electricals* BUY 114 993 1,410 42.0 13.0 20.5 18.2 28.5 17.9 48.5 54.6 34.9 2.0 45.0 29.5 33.8 23.5 9.0 12.7 10.4 15.8
Crompton Greaves Consumer Electricals HOLD 185 289 320 10.7 9.3 7.5 7.2 9.6 13.0 38.6 40.0 30.2 2.3 24.9 24.8 24.2 19.4 27.0 18.6 16.7 20.3
Havells India* BUY 818 1,306 1,460 11.8 19.0 16.9 19.3 25.2 22.1 77.3 67.7 51.8 2.3 45.3 49.9 45.0 35.3 21.4 16.8 17.4 20.3
R R Kabel BUY 194 1,720 1,750 1.8 27.4 19.8 29.7 41.0 43.7 86.7 57.9 42.0 1.0 47.4 53.7 36.6 27.2 28.7 20.5 23.4 22.7
Stove Kraft BUY 17 501 600 19.7 17.2 10.8 18.2 25.4 53.1 46.3 27.5 19.8 0.4 18.0 17.8 13.1 10.5 16.9 9.3 14.2 17.7
TTK Prestige HOLD 108 781 760 -2.7 21.2 18.8 18.0 20.3 4.0 41.6 43.5 38.5 9.7 25.8 28.5 29.1 25.7 18.5 14.4 12.6 13.1
V-Guard Industries* BUY 125 288 350 21.7 5.3 4.4 6.4 8.6 39.9 65.6 44.8 33.5 0.8 36.7 40.2 27.1 21.7 17.4 12.5 16.3 19.3
Diversified Services (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
CMS Info Systems BUY 61 388 460 18.7 15.1 19.3 21.0 24.3 12.1 20.1 18.4 16.0 1.3 14.1 10.8 9.5 8.2 20.0 21.1 19.8 19.4

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JM Financial India Conference 2023 22 November 2023
Mkt Cap 12M (%) EPS (Rs) EPS Gr (%) PE (x) PEG EV/EBITDA (x) ROE (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY22A FY23A FY24E FY25E 23-25 FY23A FY24E FY25E (x) FY22A FY23A FY24E FY25E FY22A FY23A FY24E FY25E
Consumer Staples & Retail (Richard Liu, richard.liu@jmfl.com, +91-22-66303064), (Mehul Desai, mehul.desai@jmfl.com, +91-22-66303065)
Aditya Birla Fashion & Retail BUY 204 215 235 9.3 -1.2 -0.4 -2.6 0.8 NA NA NA NA NA 18.8 14.6 14.9 11.6 NA NA NA 1.7
Asian Paints HOLD 3,005 3,133 3,290 5.0 32.5 42.9 57.7 61.5 19.7 73.1 54.3 51.0 2.6 61.9 47.5 37.6 34.1 23.5 27.6 32.9 31.5
Avenue Supermarts Ltd BUY 2,498 3,838 4,500 17.2 23.2 34.6 39.6 50.0 20.3 NA 97.0 76.7 3.8 98.9 68.0 58.9 46.5 11.6 15.1 14.8 16.0
Bikaji Foods International Ltd BUY 134 535 565 5.6 3.1 5.2 8.3 10.1 39.3 NA 64.5 53.0 1.3 95.5 62.1 41.0 34.5 10.9 14.6 19.8 20.1
Britannia Industries BUY 1,131 4,694 4,925 4.9 63.3 80.8 93.9 103.4 13.2 58.1 50.0 45.4 3.4 52.0 40.3 34.9 31.5 50.0 63.9 59.6 56.6
Campus Activewear BUY 82 268 310 15.7 3.6 3.8 4.3 5.9 24.3 69.7 61.8 45.1 1.9 34.4 32.8 28.9 22.4 29.5 24.1 21.6 23.5
Colgate-Palmolive India HOLD 590 2,168 2,020 -6.8 38.5 38.8 46.7 50.6 14.2 55.9 46.4 42.9 3.0 37.1 37.5 31.7 29.2 72.1 61.2 78.4 89.2
Dabur HOLD 960 542 595 9.8 10.3 9.6 11.2 12.6 14.3 56.2 48.2 43.0 3.0 42.3 44.6 36.5 32.5 22.7 19.7 21.1 21.5
Devyani International BUY 217 180 210 16.7 1.5 2.4 1.6 2.3 -1.8 75.6 NA 78.4 NA 45.7 33.1 30.0 22.1 44.8 35.0 18.6 22.4
Go Fashion (India) BUY 68 1,260 1,340 6.4 6.6 15.3 18.4 26.6 31.8 82.3 68.3 47.4 1.5 54.4 31.4 25.3 19.8 10.6 17.2 17.5 20.7
Godrej Consumer Products BUY 1,032 1,009 1,115 10.5 17.1 17.0 19.1 23.1 16.5 59.3 52.8 43.7 2.7 41.3 40.0 34.9 30.1 16.7 13.7 13.4 14.6
Hindustan Unilever BUY 5,925 2,522 2,880 14.2 37.4 42.0 45.5 51.3 10.5 60.0 55.4 49.1 4.7 45.5 41.4 38.2 33.8 18.2 19.9 21.0 23.0
ITC BUY 5,484 440 545 23.9 12.4 15.4 16.6 18.4 9.3 28.6 26.4 23.9 2.6 24.8 19.9 18.4 16.5 24.8 29.1 30.0 32.2
Marico Ltd. BUY 689 533 600 12.6 9.5 10.1 11.5 12.7 12.3 52.8 46.4 41.9 3.4 40.4 37.6 32.7 29.3 37.3 36.4 36.8 36.6
Restaurant Brands Asia HOLD 55 112 125 11.7 -1.9 -1.5 -0.9 0.1 NA NA NA NA NA 55.5 32.5 21.4 14.7 NA NA NA 0.3
Sapphire Foods India BUY 89 1,390 1,520 9.4 7.3 36.6 12.8 20.1 -26.0 37.9 NA 69.2 NA 27.8 20.0 16.7 13.0 6.3 20.8 6.4 9.3
Tata Consumer Products BUY 862 928 965 4.0 10.5 11.9 15.2 17.8 22.3 78.2 61.2 52.3 2.3 49.4 45.6 36.4 32.6 6.5 7.0 8.5 9.6
Titan Company BUY 3,045 3,430 3,705 8.0 24.9 36.5 42.5 52.1 19.5 94.0 80.6 65.8 3.4 91.1 62.3 54.4 44.7 26.4 30.7 28.5 28.3
Westlife Development BUY 136 873 1,005 15.1 -0.1 7.2 8.5 11.1 24.6 NA NA 78.6 3.2 72.1 36.5 30.5 25.5 NA 21.7 21.8 24.4
Hotels (Sumit Kumar, sumit.kumar@jmfl.com, +91-22-66303089)
Chalet Hotels BUY 120 582 620 6.5 -3.8 6.9 12.2 17.0 57.3 84.6 47.7 34.2 0.6 146.7 32.4 23.8 18.9 NA 9.8 15.0 17.7
Indian Hotels Company BUY 592 417 450 7.9 -1.9 7.0 8.6 10.4 21.8 59.3 48.3 40.0 1.8 150.8 33.2 26.9 21.9 NA 13.3 14.4 15.3
Lemon Tree Hotels BUY 92 116 125 8.1 -1.1 1.4 1.7 2.7 36.8 79.9 69.8 42.7 1.2 95.7 25.5 21.8 16.6 NA 13.6 14.3 19.6
SAMHI Hotels BUY 36 163 290 77.8 -19.5 -16.4 -6.0 7.4 NA NA NA 22.1 NA 524.7 25.8 17.6 11.1 0.0 0.0 NA 13.8
Industrials (Ashish Shah, ashish.shah@jmfl.com, +91-22-66303085) (Sudhanshu Bansal, sudhanshu.bansal@jmfl.com, +91-22-66303128)
AIA Engineering BUY 323 3,425 3,910 14.2 65.7 111.9 119.4 122.8 4.7 30.6 28.7 27.9 5.9 44.1 25.8 23.0 22.8 13.8 20.2 18.3 16.4
Amber Enterprises BUY 110 3,269 3,215 -1.7 32.4 46.7 53.4 88.5 37.7 70.0 61.2 36.9 1.0 41.0 27.9 22.6 17.4 6.5 8.6 9.0 13.3
Bharat Electronics BUY 1,037 142 155 9.3 3.2 4.1 4.9 5.7 17.8 34.5 28.9 24.9 1.4 29.1 23.6 20.2 17.0 20.5 23.4 24.7 25.3
Bharat Heavy Electricals BUY 491 141 165 16.8 1.3 1.4 1.2 4.7 85.9 NA NA 29.8 0.3 63.4 66.8 82.6 25.1 1.7 1.8 1.5 6.0
Blue Star BUY 201 975 1,600 64.1 17.4 27.1 39.1 57.2 45.2 35.9 25.0 17.0 0.4 27.7 19.7 15.9 11.3 17.5 22.1 25.6 30.4
Cummins India HOLD 511 1,845 1,770 -4.1 28.2 41.3 48.9 56.3 16.8 44.7 37.7 32.8 1.9 56.0 39.5 33.1 28.1 16.8 22.3 23.5 23.8
Data Patterns (India) BUY 103 1,839 2,720 47.9 18.1 23.4 31.8 37.6 26.7 82.0 60.3 51.0 1.9 69.4 57.5 41.3 34.8 24.0 19.3 21.8 21.2
Dixon Technogies BUY 324 5,412 5,975 10.4 32.5 42.9 76.7 113.1 62.4 NA 70.6 47.8 0.8 84.0 62.7 40.4 28.2 21.9 22.4 30.5 33.6
Harsha Engineers International BUY 36 395 460 16.5 10.1 13.5 10.9 15.7 7.6 29.2 36.2 25.2 3.3 23.3 19.2 21.5 15.8 19.4 15.5 8.9 11.5
GMM Pfaudler BUY 69 1,539 1,800 17.0 30.2 40.3 56.5 71.7 33.4 38.2 27.3 21.4 0.6 21.4 17.1 13.9 11.6 28.3 27.2 28.1 28.4
Kirloskar Oil Engines BUY 77 530 630 18.8 10.7 20.6 24.4 31.2 23.0 25.7 21.7 17.0 0.7 28.8 16.9 13.9 10.9 7.5 13.3 14.5 16.8
MTAR Technologies BUY 68 2,200 2,575 17.1 19.8 33.6 34.2 61.7 35.5 65.4 64.3 35.6 1.0 72.0 44.7 39.6 23.9 12.2 18.1 15.6 23.2
Rolex Rings BUY 64 2,344 2,500 6.7 48.4 72.7 84.6 100.0 17.2 32.2 27.7 23.4 1.4 28.8 24.7 20.4 16.4 29.3 30.8 27.6 26.3
Schaeffler India HOLD 440 2,812 3,015 7.2 40.2 55.5 60.4 69.3 11.7 50.7 46.5 40.6 3.5 43.8 32.8 30.8 26.2 18.5 21.8 20.7 21.1
SKF India BUY 232 4,702 5,700 21.2 79.9 106.1 128.5 148.4 18.3 44.3 36.6 31.7 1.7 41.1 29.7 26.8 22.8 22.9 24.8 25.4 25.8
Techno Electric BUY 77 715 450 -37.1 15.3 8.6 18.5 24.0 66.9 83.1 38.7 29.8 0.4 48.5 91.3 45.5 32.7 9.7 4.9 9.9 12.0
Tega Industries BUY 67 1,008 1,145 13.6 17.6 27.7 29.0 34.8 12.1 36.4 34.7 28.9 2.4 36.6 25.0 22.1 18.6 17.3 20.6 17.0 17.4
Timken India BUY 220 2,927 3,600 23.0 43.5 51.2 63.9 80.1 25.1 57.1 45.8 36.5 1.5 42.9 38.6 30.8 24.5 21.8 20.9 21.2 21.8
Thermax SELL 311 2,613 1,800 -31.1 26.2 37.8 49.1 60.0 25.9 69.1 53.3 43.6 1.7 72.2 51.4 37.1 30.2 9.3 12.3 14.3 15.6
Voltas BUY 281 848 1,100 29.7 15.3 9.6 20.4 29.3 74.4 87.9 41.7 28.9 0.4 35.6 43.3 27.8 20.2 9.6 5.8 11.7 15.1
Infrastructure/Construction (Ashish Shah, ashish.shah@jmfl.com, +91-22-66303085)
Ahluwalia Contracts HOLD 54 807 865 7.2 23.2 29.0 35.1 49.2 30.3 27.8 23.0 16.4 0.5 19.4 15.8 12.9 9.4 16.2 17.1 17.6 20.7
Ashoka Buildcon BUY 40 141 170 20.5 16.4 11.5 9.8 13.6 8.8 12.3 14.4 10.4 1.2 7.9 9.0 8.5 6.2 16.2 10.6 7.6 9.2
GR Infraprojects BUY 103 1,067 1,365 27.9 79.0 88.1 75.9 83.6 -2.6 12.1 14.0 12.8 NA 8.3 8.4 9.0 8.0 19.2 17.8 13.2 12.7
HG Infra Engineering BUY 57 879 1,150 30.9 52.0 64.7 74.9 85.2 14.8 13.6 11.7 10.3 0.7 10.1 8.5 6.8 6.1 28.3 26.8 23.1 20.4
Kalpataru Projects International BUY 104 641 750 17.0 23.5 32.7 35.7 49.4 22.9 19.6 18.0 13.0 0.6 12.1 10.0 8.5 6.8 5.8 9.6 10.4 13.1
KEC International HOLD 153 597 650 8.9 14.2 6.8 17.9 35.0 126.2 87.1 33.3 17.0 0.1 19.9 21.9 13.1 9.2 10.5 4.8 11.6 19.7
KNR Constructions BUY 83 293 330 12.6 12.8 14.4 16.0 18.4 13.0 20.3 18.4 15.9 1.2 11.9 11.6 11.0 9.5 17.5 16.3 15.2 15.1
Larsen & Toubro BUY 4,333 3,082 3,380 9.7 61.0 73.5 99.6 122.5 29.1 41.9 30.9 25.2 0.9 28.6 24.5 20.4 17.2 10.8 12.0 15.4 17.8
NCC BUY 103 164 195 18.9 5.7 9.2 12.8 14.1 24.0 17.8 12.8 11.6 0.5 10.7 7.8 6.3 5.6 6.2 9.4 12.2 12.2
PNC Infratech BUY 84 326 460 41.0 19.2 23.8 25.0 28.7 9.7 13.7 13.0 11.4 1.2 9.7 8.8 8.2 7.2 15.8 16.8 15.1 15.0
PSP Projects BUY 28 772 900 16.6 45.1 36.9 47.9 55.3 22.4 20.9 16.1 14.0 0.6 10.5 11.9 9.3 7.7 26.6 17.9 19.7 19.1

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JM Financial India Conference 2023 22 November 2023

Mkt Cap 12M (%) EPS (Rs) EPS Gr (%) PE (x) PEG EV/EBITDA (x) ROE (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY22A FY23A FY24E FY25E 23-25 FY23A FY24E FY25E (x) FY22A FY23A FY24E FY25E FY22A FY23A FY24E FY25E
IT Services (Abhishek Kumar, abhishek.kumar@jmfl.com, +91-22-66303053)
Coforge BUY 347 5,634 5,730 1.7 107.4 133.9 152.3 214.1 26.4 42.1 37.0 26.3 1.0 31.1 24.6 22.0 16.8 25.5 28.4 27.7 31.7
HCL Tech HOLD 3,608 1,330 1,250 -6.0 49.6 54.7 57.9 65.7 9.6 24.3 23.0 20.2 2.1 16.7 15.0 14.1 12.8 21.8 23.3 24.0 26.9
Infosys HOLD 6,050 1,458 1,350 -7.4 52.4 57.6 59.0 64.2 5.6 25.3 24.7 22.7 4.1 18.8 16.8 15.8 14.6 29.2 32.0 30.4 31.3
LTI Mindtree HOLD 1,643 5,554 4,880 -12.1 133.1 149.0 161.9 194.7 14.3 37.3 34.3 28.5 2.0 30.0 25.8 22.5 18.8 36.6 28.6 26.3 26.2
Persistent Systems HOLD 507 6,594 5,720 -13.3 90.3 120.5 150.6 181.4 22.7 54.7 43.8 36.4 1.6 51.5 32.6 27.8 22.7 22.4 25.1 26.6 26.7
Tech Mahindra HOLD 1,186 1,215 1,120 -7.8 62.9 54.8 31.0 60.7 5.2 22.2 39.3 20.0 3.8 13.0 13.1 20.0 12.1 21.5 17.7 10.2 20.7
Tata Consultancy HOLD 12,917 3,530 3,500 -0.9 103.6 115.2 128.4 143.0 11.4 30.6 27.5 24.7 2.2 23.7 21.0 19.2 17.2 42.6 45.9 48.8 50.7
Wipro BUY 2,090 400 450 12.4 22.3 20.5 21.3 25.3 11.2 19.6 18.8 15.8 1.4 12.0 11.6 11.0 9.4 20.2 15.6 14.6 17.1
Internet (Swapnil Potdukhe, swapnil.potdukhe@jmfl.com, +91-22-62241876), (Sachin Dixit, sachin.dixit@jmfl.com, +91-22-66303078)
Affle (India) SELL 142 1,067 880 -17.6 16.2 18.4 21.9 27.4 21.9 58.0 48.7 39.0 1.8 64.3 47.4 36.5 28.3 27.9 18.6 18.1 18.8
CarTrade Tech BUY 37 779 1,010 29.6 -26.5 6.7 10.8 26.7 99.7 NA 72.0 29.1 0.3 -23.2 94.0 68.1 20.1 NA 1.7 2.7 6.3
Delhivery HOLD 283 386 380 -1.5 -17.0 -13.8 -2.4 2.4 NA NA NA NA NA -52.8 -58.4 132.0 39.3 NA NA NA 1.9
Easy Trip Planners HOLD 67 39 45 16.0 0.6 0.8 1.0 1.1 16.9 50.3 39.2 36.8 2.2 49.4 37.6 27.3 25.4 53.2 44.3 37.6 28.8
FSN E-Commerce Ventures BUY 491 172 210 22.2 0.8 0.1 0.5 1.1 273.9 NA NA NA NA 46.9 192.9 113.1 66.8 4.3 1.7 9.0 18.7
Info Edge India* HOLD 613 4,741 4,700 -0.9 689.2 31.8 61.8 69.7 48.0 NA 76.7 68.0 1.4 124.6 74.0 63.8 56.2 96.3 3.3 7.2 7.8
IndiaMART InterMESH BUY 158 2,580 3,300 27.9 48.4 46.2 52.3 68.7 21.9 55.8 49.3 37.6 1.7 43.1 50.4 39.3 29.6 17.1 14.4 14.7 17.2
Just Dial BUY 61 713 950 33.2 9.3 19.1 37.1 44.8 53.0 37.2 19.2 15.9 0.3 -742.9 23.3 8.4 4.7 3.0 4.5 8.3 9.1
PB Fintech BUY 370 821 1,010 23.0 -19.8 -10.0 2.0 8.3 NA NA NA 98.5 NA -32.8 -53.2 -194.6 162.7 NA NA 1.7 6.5
Route Mobile BUY 97 1,548 1,950 25.9 27.8 50.0 60.6 76.6 23.7 30.9 25.6 20.2 0.9 34.4 20.5 16.5 13.1 14.3 17.9 19.1 20.3
Zomato BUY 1,004 115 155 34.4 -2.1 -4.6 0.3 1.5 NA NA NA 78.8 NA -38.3 -20.6 1,636.5 59.5 NA NA 1.2 6.1
Metals & Mining (Ashutosh Somani, ashutosh.somani@jmfl.com, +91-22-66303083)
Hindalco Industries BUY 1,124 500 600 19.9 62.6 46.2 50.0 51.9 6.0 10.8 10.0 9.6 1.6 5.3 6.6 5.9 5.4 19.2 11.9 11.1 10.3
Hindustan Zinc BUY 1,266 300 325 8.5 23.1 24.9 21.5 24.9 0.1 12.0 13.9 12.0 88.5 6.7 7.3 7.9 6.8 29.3 44.5 67.5 69.1
Jindal Steel & Power BUY 665 652 780 19.7 81.5 44.3 49.7 72.4 27.8 14.7 13.1 9.0 0.3 5.0 7.6 7.0 5.2 24.7 12.2 12.3 15.6
JSW Steel BUY 1,879 768 830 8.0 88.6 14.7 40.5 49.5 83.4 52.3 19.0 15.5 0.2 6.2 13.4 9.0 7.7 37.6 5.3 13.9 14.9
Kirloskar Ferrous Industries BUY 73 525 600 14.2 25.0 28.5 36.0 51.6 34.6 18.4 14.6 10.2 0.3 13.8 10.9 8.5 6.4 25.1 20.5 21.5 24.8
NMDC HOLD 503 172 160 -6.6 32.0 14.7 19.1 19.0 13.9 11.7 9.0 9.0 0.6 3.6 7.2 6.5 6.0 28.9 14.9 23.0 20.3
SAIL SELL 369 89 95 6.4 30.5 4.6 2.0 6.2 15.2 19.2 43.9 14.5 1.0 2.5 8.3 8.1 5.4 25.3 3.5 1.5 4.6
Shyam Metalics and Energy Ltd BUY 114 448 520 16.0 67.6 33.6 27.1 69.6 43.9 13.3 16.5 6.4 0.1 4.3 7.6 8.3 4.0 36.4 13.2 9.2 20.4
Tata Steel BUY 1,541 126 150 18.9 34.4 7.1 4.1 12.2 31.1 17.8 30.9 10.4 0.3 3.3 7.1 9.1 6.1 44.7 8.0 4.8 13.5
Welspun Corp BUY 141 538 600 11.6 7.9 5.0 40.4 46.0 202.3 NA 13.3 11.7 0.1 30.0 31.6 10.0 7.7 4.8 2.9 20.3 19.4
Media (Abhishek Kumar, abhishek.kumar@jmfl.com, +91-22-66303053)
PVR INOX BUY 162 1,655 2,340 41.4 -80.0 -32.6 48.0 75.8 NA NA 34.5 21.8 NA 105.3 16.8 7.7 6.1 NA NA 6.2 9.0
Nazara Technologies HOLD 59 802 750 -6.5 4.5 8.9 11.7 14.4 27.1 89.9 68.8 55.6 2.0 47.7 44.5 36.2 17.2 3.4 5.5 5.8 6.0
Saregama India BUY 71 370 450 21.5 8.4 9.6 9.4 12.0 11.7 38.5 39.3 30.9 2.6 32.0 28.9 26.5 20.3 17.5 13.6 13.0 15.1
Zee Entertainment BUY 239 249 390 56.4 11.5 4.5 8.3 11.3 58.3 55.2 30.1 22.0 0.4 13.5 21.2 17.9 13.3 10.5 4.0 7.3 9.4
Oil & Gas (Dayanand Mittal, dayanand.mittal@jmfl.com, +91-22-66303063)
Bharat Petroleum BUY 872 402 400 -0.6 49.5 17.7 81.0 51.5 70.4 22.7 5.0 7.8 0.1 7.3 13.2 4.4 5.9 20.0 7.2 29.0 15.8
GAIL BUY 814 124 140 13.2 15.8 8.0 11.6 12.6 25.2 15.4 10.7 9.8 0.4 5.3 12.4 7.5 6.9 20.3 9.5 13.2 13.4
Gujarat Gas* BUY 293 426 550 29.2 18.7 22.2 21.1 24.5 5.1 21.2 22.3 19.2 3.7 15.9 12.9 13.5 11.5 25.4 24.1 19.3 19.6
Gujarat State Petro.* BUY 154 273 345 26.3 17.4 16.7 16.7 17.7 2.9 16.3 16.4 15.4 5.3 7.4 7.6 6.8 5.9 12.2 10.7 9.8 9.7
Hindustan Petro. BUY 433 306 280 -8.5 51.4 -49.2 84.4 66.3 NA NA 3.6 4.6 NA 8.6 -15.1 5.5 6.4 18.4 NA 32.0 20.3
Indraprastha Gas* BUY 273 390 500 28.3 18.8 20.6 24.3 26.6 13.5 18.9 16.0 14.6 1.1 13.4 13.0 10.7 9.3 20.5 20.6 21.9 20.3
Indian Oil HOLD 1,430 101 85 -16.3 17.8 6.9 22.9 14.8 46.2 14.6 4.4 6.8 0.1 5.6 9.3 5.4 6.9 20.5 7.2 22.0 13.2
Mahanagar Gas BUY 101 1,023 1,250 22.2 60.4 80.0 117.4 107.1 15.7 12.8 8.7 9.6 0.6 9.7 7.3 4.9 5.0 17.5 20.4 25.6 20.1
ONGC BUY 2,403 191 225 17.8 37.9 34.6 39.3 35.3 0.9 5.5 4.9 5.4 5.8 4.4 4.2 3.2 3.5 19.8 16.1 16.8 13.8
Oil India BUY 329 304 355 17.0 51.8 80.5 71.3 56.4 -16.3 3.8 4.3 5.4 NA 4.8 3.4 4.6 5.3 20.7 25.3 18.9 13.4
Petronet LNG* HOLD 294 196 210 7.0 22.3 21.6 22.9 24.9 7.3 9.1 8.6 7.9 1.1 4.5 4.7 4.1 3.6 26.7 22.8 22.0 21.6
Reliance Industries BUY 16,159 2,388 2,900 21.4 83.1 98.0 101.5 130.6 15.4 24.4 23.5 18.3 1.2 17.0 13.1 11.9 10.2 7.6 8.9 9.2 10.9

JM Financial Institutional Securities Limited Page 26

JM Financial India Conference 2023 22 November 2023

Mkt Cap 12M (%) EPS (Rs) EPS Gr (%) PE (x) PEG EV/EBITDA (x) ROE (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY22A FY23A FY24E FY25E 23-25 FY23A FY24E FY25E (x) FY22A FY23A FY24E FY25E FY22A FY23A FY24E FY25E
Pharmaceuticals (Jainil Shah, jainil.shah@jmfl.com, +91-22-66303155)
Alembic Pharmaceuticals BUY 143 728 915 25.6 35.2 17.4 26.7 39.8 51.1 41.8 27.2 18.3 0.4 16.4 21.0 16.2 11.3 13.4 7.1 11.5 15.5
Aster DM Healthcare BUY 169 337 335 -0.7 10.6 8.5 13.8 19.4 50.6 39.5 24.5 17.4 0.3 12.9 12.2 9.7 7.8 14.4 10.1 14.3 17.2
Biocon BUY 283 236 340 44.1 6.3 6.3 7.2 12.9 43.5 37.6 32.6 18.2 0.4 15.9 18.7 13.7 11.0 9.5 5.7 4.6 7.4
Cipla HOLD 1,027 1,272 1,155 -9.2 32.9 36.4 47.2 51.2 18.7 35.0 27.0 24.8 1.3 21.9 19.6 15.6 13.7 13.5 13.3 15.2 14.6
Dr Reddy's Labs BUY 945 5,665 6,055 6.9 174.0 238.2 319.9 320.9 16.1 23.8 17.7 17.7 1.1 20.1 13.8 11.0 10.2 15.8 18.7 20.9 17.8
Dr Lal Pathlabs BUY 225 2,696 2,575 -4.5 41.3 28.6 43.6 51.6 34.3 94.1 61.8 52.2 1.5 39.6 44.8 35.9 30.8 25.0 15.1 20.4 21.1
Global Health BUY 241 896 930 3.8 7.7 13.9 17.2 20.2 20.5 64.5 52.0 44.4 2.2 51.1 35.2 29.6 25.2 13.1 17.8 17.4 17.4
Ipca Laboratories BUY 277 1,090 1,055 -3.2 34.8 18.6 25.0 40.2 47.2 58.7 43.7 27.1 0.6 21.0 29.8 23.1 16.3 17.3 8.3 10.3 14.9
Jupiter Life Line Hospitals BUY 67 1,017 1,260 23.9 10.1 14.0 24.3 31.1 49.2 72.9 41.8 32.7 0.7 36.3 28.0 22.9 19.7 19.1 22.4 18.6 15.9
Krsnaa Diagnostics BUY 20 631 1,010 60.1 21.8 19.8 19.3 36.6 36.1 31.9 32.8 17.2 0.5 12.7 14.2 13.1 7.9 14.9 8.7 7.9 13.4
Lupin HOLD 555 1,219 1,175 -3.6 27.3 9.4 38.5 43.3 114.2 NA 31.7 28.1 0.2 25.3 32.4 16.7 14.7 9.6 3.5 13.3 13.4
Metropolis Healthcare BUY 83 1,620 1,635 1.0 38.8 27.9 27.9 37.9 16.4 58.0 58.1 42.8 2.6 24.4 28.6 28.2 22.6 24.9 15.2 13.7 16.8
Natco Pharma HOLD 143 800 875 9.4 24.5 39.2 58.6 72.8 36.3 20.4 13.6 11.0 0.3 53.9 14.5 9.8 7.4 10.7 15.7 20.2 21.4
Sun Pharma BUY 2,889 1,204 1,305 8.4 32.7 36.0 40.0 46.5 13.6 33.4 30.1 25.9 1.9 26.9 24.3 21.6 18.2 16.6 16.6 16.2 16.9
Torrent Pharmaceuticals HOLD 715 2,112 1,835 -13.1 37.3 36.8 47.5 61.2 29.0 57.4 44.4 34.5 1.2 30.8 26.8 22.0 18.7 21.4 20.5 23.7 25.3
Vijaya Diagnostics BUY 63 612 630 3.0 10.9 8.4 12.1 15.1 34.2 73.2 50.6 40.6 1.2 30.3 33.4 28.0 23.3 26.8 16.8 20.9 22.0
Zydus Lifesciences BUY 650 642 720 12.1 20.8 25.4 32.5 36.5 19.9 25.3 19.8 17.6 0.9 20.5 17.4 13.3 11.7 14.2 14.9 17.5 17.0
Ports & Logistics (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
Adani Ports and SEZ BUY 1,711 792 1,140 44.0 27.4 7.1 38.8 47.1 157.5 NA 20.4 16.8 0.1 21.1 63.4 13.4 11.1 16.8 0.0 17.1 18.0
Container Corporation* BUY 456 749 810 8.1 17.4 19.2 19.8 23.8 11.2 39.0 37.8 31.5 2.8 24.4 22.8 22.3 19.0 10.1 10.6 10.6 12.2
Gateway Distriparks BUY 53 106 100 -5.9 4.0 4.8 5.3 6.5 15.8 21.9 20.0 16.4 1.0 14.1 15.4 13.9 11.7 13.0 14.2 14.5 16.4
Gujarat Pipavav* HOLD 65 135 140 3.7 4.1 6.6 7.1 7.7 8.3 20.4 19.0 17.4 2.1 13.7 11.2 10.5 10.0 9.7 15.5 16.4 17.3
TVS Supply Chain Solutions BUY 92 210 290 38.4 -0.4 1.4 -1.1 3.1 48.6 NA NA 66.5 1.4 15.0 15.2 13.5 10.5 NA 6.4 NA 6.9
Real Estate (Sumit Kumar, sumit.kumar@jmfl.com, +91-22-66303089)
Brookfield India Real Estate Trust BUY 105 240 280 20.4 7.3 2.6 9.9 9.8 94.8 92.5 24.3 24.4 0.3 21.0 13.4 10.7 10.4 2.9 1.0 4.8 4.3
Embassy Office Parks REIT BUY 298 314 340 8.3 9.4 5.3 9.6 10.7 41.9 58.9 32.8 29.2 0.7 18.0 17.2 15.2 14.2 3.4 2.0 3.8 4.5
Nexus Select Trust BUY 193 128 145 17.3 0.1 2.6 4.5 5.1 39.0 48.8 28.4 25.3 0.6 32.6 18.7 15.0 13.7 0.6 20.6 6.4 4.1
Phoenix Mills BUY 397 2,222 2,270 2.1 13.3 40.9 43.8 61.0 22.1 54.4 50.7 36.4 1.6 59.9 29.9 23.8 17.0 4.1 9.8 8.9 11.3
Mindspace Business Parks REIT BUY 188 317 345 12.1 8.6 7.1 9.5 11.5 27.2 44.7 33.2 27.6 1.0 17.6 16.1 15.1 14.2 3.2 2.8 3.9 4.9
Sugar (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
Balrampur Chini* BUY 93 462 490 6.2 23.9 16.2 23.3 31.9 40.1 28.4 19.9 14.5 0.4 14.2 20.0 13.6 10.4 18.3 11.6 16.1 21.1
Telecom (Dayanand Mittal, dayanand.mittal@jmfl.com, +91-22-66303063)
Bharti Airtel BUY 5,677 970 1,125 16.0 6.4 15.1 23.6 36.8 56.4 64.4 41.2 26.3 0.5 12.6 11.0 9.5 8.3 5.7 11.9 16.1 21.3
Indus Towers HOLD 504 187 160 -14.3 23.6 9.4 20.0 22.8 55.9 19.9 9.3 8.2 0.1 3.6 5.6 3.9 3.3 33.5 11.7 24.3 25.1
Vodafone Idea SELL 657 14 6 -58.1 -8.8 -6.0 -5.4 -4.4 NA NA NA NA NA 14.5 15.9 16.2 14.3 0.0 0.0 0.0 0.0
Utilities (Sudhanshu Bansal, sudhanshu.bansal@jmfl.com, +91-22-66303128)
CESC BUY 132 100 100 0.0 10.2 10.1 10.8 12.3 10.6 9.9 9.2 8.1 0.8 6.9 7.4 6.7 6.1 12.9 12.1 12.2 12.8
Coal India BUY 2,047 332 360 8.5 28.5 46.6 37.4 41.9 -5.1 7.1 8.9 7.9 NA 6.8 4.3 5.1 4.3 44.1 57.2 36.7 34.2
JSW Energy BUY 688 418 500 19.6 10.5 8.3 9.5 14.5 32.3 50.5 43.8 28.9 0.9 20.9 25.7 16.9 13.1 10.8 7.5 8.1 11.4
NHPC BUY 547 54 58 6.1 3.8 4.2 4.5 5.3 12.2 12.9 12.2 10.3 0.8 16.5 14.4 12.5 11.2 11.1 11.8 11.8 13.1
NTPC BUY 2,460 254 270 6.4 17.5 17.7 23.1 28.4 26.8 14.4 11.0 8.9 0.3 10.6 9.1 8.4 7.3 13.0 12.1 14.5 16.1
Power Grid Corp. BUY 1,968 212 235 11.0 15.1 16.3 16.9 17.5 3.6 13.0 12.6 12.1 3.4 8.4 7.7 7.2 6.9 19.2 19.0 18.3 17.9
SJVN Ltd. BUY 319 81 67 -17.3 2.6 3.5 3.7 5.2 21.5 22.9 21.7 15.5 0.7 20.8 18.9 16.6 12.6 7.8 10.3 10.3 13.5
Suzlon Energy Ltd. BUY 525 37 37 -1.5 -0.3 0.1 0.7 1.3 207.6 NA 57.0 29.1 0.1 45.7 57.2 44.0 26.2 0.0 0.0 34.7 35.7
Tata Power HOLD 837 262 230 -12.1 5.4 10.4 13.4 16.8 26.9 25.1 19.6 15.6 0.6 17.1 14.7 13.5 12.0 7.3 11.2 13.3 13.9
Torrent Power HOLD 383 797 685 -14.0 28.8 44.1 105.6 117.8 63.6 18.1 7.5 6.8 0.1 12.6 9.9 5.1 4.6 13.7 20.2 39.3 33.3
Textiles and Others (Ashutosh Somani, ashutosh.somani@jmfl.com, +91-22-66303083)
Central Depository Services HOLD 180 1,719 1,360 -20.9 29.8 26.4 28.8 36.4 17.4 65.1 59.8 47.2 2.7 46.1 52.5 49.5 41.5 31.6 23.9 23.5 26.7
Gokaldas Exports BUY 56 922 1,160 25.7 17.0 26.0 24.2 37.0 19.2 35.4 38.0 24.9 1.3 27.9 20.3 19.7 13.0 21.1 20.2 15.3 19.0
Trident Limited BUY 190 37 38 1.8 1.6 0.9 0.9 1.2 16.8 42.9 40.0 31.5 1.9 13.4 21.2 19.0 16.1 23.2 11.0 10.8 12.4
Welspun India BUY 157 162 185 14.3 6.1 2.0 6.6 8.7 108.2 80.5 24.7 18.6 0.2 13.9 23.6 11.2 9.0 15.8 4.9 14.9 17.2

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JM Financial India Conference 2023 22 November 2023
EPS (Rs) PE (x) PEG P/BV (x) ROE (%)
Company Mkt Cap 12M (%) EPS Gr (%)
Rating (Rs bn) CMP (Rs) TP (Rs) upside FY22A FY23A FY24E FY25E 23-25 FY23A FY24E FY25E (x) FY22A FY23A FY24E FY25E FY22A FY23A FY24E FY25E
Banking & Financial Services*
NBFC (Sameer Bhise, sameer.bhise@jmfl.com, +91-22-66303489)
Aavas Financiers BUY 117 1,484 1,840 24.0 45.2 54.4 67.2 84.5 24.6 27.3 22.1 17.6 0.7 4.1 3.5 3.0 2.6 13.7 14.2 15.0 16.2
Aditya Birla Capital BUY 444 171 220 28.7 16.7 23.5 29.3 38.3 27.7 7.3 5.8 4.5 0.2 1.1 1.0 0.8 0.7 11.9 14.6 16.8 17.3
Aptus Value Housing Finance BUY 143 288 315 9.5 7.4 10.1 12.5 15.2 22.7 28.5 23.0 18.9 0.8 5.0 4.4 3.8 3.3 15.1 16.1 17.3 18.2
Bajaj Finance BUY 4,405 7,128 9,500 33.3 116.5 190.4 241.3 309.3 27.5 37.4 29.5 23.0 0.8 10.0 8.0 5.8 4.8 17.4 23.5 22.8 22.6
Cholamandalam Invest. & Fin HOLD 941 1,121 1,120 -0.1 26.1 32.4 43.6 53.4 28.3 34.6 25.7 21.0 0.7 7.9 6.5 4.8 4.0 20.2 20.5 21.7 20.8
Five-Star Business Finance BUY 234 800 840 4.9 15.6 20.7 27.7 35.9 31.7 38.6 28.9 22.3 0.7 6.3 5.4 4.6 3.9 15.0 15.0 17.0 18.7
Home First Finance Company BUY 81 915 1,095 19.7 21.2 25.9 33.0 41.8 27.0 35.3 27.7 21.9 0.8 5.2 4.5 4.0 3.4 12.6 13.5 14.9 16.4
LIC Housing Finance BUY 251 457 550 20.5 41.6 52.5 74.1 81.9 24.9 8.7 6.2 5.6 0.2 1.0 0.9 0.8 0.7 10.1 11.2 14.2 13.9
L&T Finance Holdings BUY 352 141 145 2.5 4.3 6.5 9.9 12.7 39.5 21.6 14.2 11.1 0.3 1.7 1.6 1.5 1.3 5.5 7.8 10.9 12.5
M&M Financial BUY 339 275 335 22.0 8.0 16.1 16.0 24.0 22.2 17.1 17.2 11.4 0.5 2.2 2.0 1.8 1.6 6.5 12.1 11.0 14.9
Piramal Enterprises BUY 218 915 1,250 36.6 83.8 417.7 72.8 61.0 -61.8 2.2 12.6 15.0 NA 0.6 0.5 0.7 0.7 5.6 13.3 5.3 4.4
PNB Housing Finance BUY 210 809 825 2.0 49.6 62.0 55.8 69.2 5.7 13.1 14.5 11.7 2.1 1.4 0.5 1.4 1.3 8.9 13.3 11.2 11.5
Poonawalla Fincorp BUY 278 362 480 32.6 4.9 8.9 29.9 19.9 49.2 40.6 12.1 18.2 0.4 4.7 0.5 3.1 2.7 9.1 13.3 13.5 15.7
Shriram Finance BUY 742 1,977 2,130 7.7 101.9 159.7 197.0 221.1 17.7 12.4 10.0 8.9 0.5 2.1 1.7 1.5 1.3 13.5 15.4 15.9 15.5
NBFC - MFI (Sameer Bhise, sameer.bhise@jmfl.com, +91-22-66303489)
CreditAccess Grameen BUY 269 1,689 1,550 -8.2 22.9 52.0 85.8 109.4 45.1 32.5 19.7 15.4 0.3 6.0 5.0 3.9 3.1 9.1 17.8 23.6 23.7
Fusion Micro Finance BUY 59 583 700 20.0 2.6 38.6 48.8 68.7 33.5 15.1 11.9 8.5 0.3 3.7 2.6 2.2 1.8 1.7 21.2 19.4 22.7
Satin Creditcare Network BUY 24 243 330 36.0 2.8 0.6 39.7 52.5 861.6 NA 6.1 4.6 0.0 1.2 1.3 1.1 0.9 1.4 0.3 21.5 21.2
Spandana Sphoorty Financial BUY 70 990 1,065 7.6 6.8 1.7 74.6 103.3 670.9 NA 13.3 9.6 0.0 2.4 2.5 2.1 1.8 1.6 0.4 16.0 18.9
Fintech (Sameer Bhise, sameer.bhise@jmfl.com, +91-22-66303489)
One 97 Communications BUY 579 912 1,325 0.5 -36.9 -28.0 -5.7 11.4 NM NM NM NM NM 4.2 4.4 4.6 4.3 -23.1 -13.1 -2.8 5.6
Small Finance Bank (Sameer Bhise, sameer.bhise@jmfl.com, +91-22-66303489)
AU Small Finance Bank HOLD 479 717 725 1.1 17.9 21.4 32.1 44.3 43.8 33.5 22.3 16.2 0.4 6.2 4.5 3.8 3.1 16.6 15.5 18.0 20.8
Equitas Small Finance Bank BUY 107 95 115 21.3 2.2 5.2 8.2 10.6 43.4 18.4 11.5 8.9 0.2 2.9 2.1 1.8 1.6 7.3 12.2 16.5 18.5
Ujjivan Small Finance Bank BUY 107 55 60 9.9 -2.4 5.6 6.9 8.2 20.9 9.7 7.9 6.6 0.3 3.8 2.8 2.1 1.7 NA 33.7 29.5 27.3
Private Sector Banks (Sameer Bhise, sameer.bhise@jmfl.com, +91-22-66303489)
AXIS Bank BUY 3,077 998 1,040 4.2 42.4 31.1 75.9 89.2 69.3 32.1 13.2 11.2 0.2 2.7 2.4 2.1 1.8 12.0 8.0 17.3 17.6
Bandhan Bank BUY 342 212 320 50.8 0.8 13.6 25.3 32.8 55.2 15.6 8.4 6.5 0.1 2.0 1.8 1.5 1.3 0.7 11.9 19.1 20.9
City Union Bank HOLD 110 149 150 0.8 10.3 12.7 14.5 16.0 12.4 11.8 10.3 9.3 0.8 1.7 1.5 1.3 1.1 12.2 13.4 13.5 13.1
DCB Bank HOLD 35 112 130 15.8 9.2 14.9 17.8 21.7 20.4 7.5 6.3 5.2 0.3 0.9 0.8 0.7 0.7 7.8 11.5 12.3 13.4
HDFC Bank BUY 11,479 1,513 1,850 22.3 66.7 79.1 80.9 101.5 13.3 19.1 18.7 14.9 1.1 3.5 3.0 2.6 2.3 16.7 17.0 17.0 16.3
ICICI Bank BUY 6,468 923 1,155 25.2 33.6 45.7 55.4 62.7 17.2 20.2 16.7 14.7 0.9 3.8 3.3 2.8 2.5 15.0 17.5 18.2 17.9
IndusInd Bank BUY 1,143 1,470 1,675 13.9 62.0 95.9 120.8 147.3 23.9 15.3 12.2 10.0 0.4 2.4 2.1 1.9 1.6 10.6 14.5 16.0 17.0
Kotak Mahindra Bank BUY 3,470 1,746 2,205 26.3 43.2 55.1 68.3 81.2 21.5 31.7 25.5 21.5 1.0 4.9 4.2 3.6 3.1 12.7 14.1 15.2 15.5
YES Bank HOLD 552 19 17 -14.1 0.4 0.2 0.4 0.8 76.1 77.0 52.0 24.8 0.3 1.6 1.5 1.5 1.4 3.2 2.0 2.7 5.3
SOE BANKS (Sameer Bhise, sameer.bhise@jmfl.com, +91-22-66303489)
Bank of Baroda BUY 1,007 195 235 20.7 14.0 27.3 31.0 33.8 11.4 7.1 6.3 5.8 0.5 1.3 1.1 1.0 0.8 9.7 16.5 16.3 15.5
Canara Bank BUY 716 395 395 0.1 38.8 58.5 76.6 85.6 21.0 6.8 5.2 4.6 0.2 1.3 1.1 0.9 0.8 13.0 17.1 19.4 18.6
Punjab National Bank HOLD 841 76 75 -1.8 3.1 2.3 5.9 10.4 114.1 33.5 12.9 7.3 0.1 1.0 0.9 0.9 0.8 4.0 2.8 6.9 11.5
State Bank of India BUY 4,988 559 710 27.0 35.5 56.3 64.7 72.9 13.8 9.9 8.6 7.7 0.6 2.0 1.7 1.5 1.3 13.0 18.1 17.9 17.5
Mkt Cap 12M (%) Embedded Value@ (INRbn) EV Gr (%) P/EV (x) PEG Embedded Value@ (INRbn) ROE$ (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside 23-25
FY22A FY23A FY24E FY25E FY23A FY24E FY25E (x) FY22A FY23A FY24E FY25E FY22A FY23A FY24E FY25E
Insurance (Sameer Bhise, sameer.bhise@jmfl.com, +91-22-66303489)
HDFC Life Insurance BUY 1,437 669 750 12.2 300.5 395.3 468.4 555.9 18.6 3.6 3.1 2.6 NA 300.5 395.3 468.4 555.9 16.6 19.7 18.1 18.1
ICICI Prudential Life BUY 804 558 665 19.2 316.3 356.3 412.6 477.3 15.7 2.2 1.9 1.7 NA 316.3 356.3 412.6 477.3 11.0 17.4 16.8 16.5
Life Insurance Corporation BUY 3,850 609 940 54.4 5,414.9 5,822.4 6,569.0 7,407.4 12.8 0.7 0.6 0.5 NA 5,414.9 5,822.4 6,569.0 7,407.4 11.9 10.9 11.1 11.1
SBI Life Insurance BUY 1,430 1,428 1,500 5.0 396.0 460.3 563.2 687.7 22.2 3.1 2.5 2.1 NA 396.0 460.3 563.2 687.7 16.4 22.9 21.8 21.5
ICICI Lombard General Insurance BUY 712 1,449 1,530 5.6 94.7 152.3 171.2 NA NA NA NA NA NA 94.7 152.3 171.2 NA 15.4 14.8 15.2 NA
Mkt Cap 12M (%) EPS P/E P/B PAT/ Avg AUM Price / AUM
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY22A FY23A FY24E FY25E FY23A FY24E FY25E FY22A FY23A FY24E FY25E FY23A FY24E FY25E FY23A FY24E FY25E
Asset Management (Sameer Bhise, sameer.bhise@jmfl.com, +91-22-66303489)
HDFC AMC BUY 609 2,854 3,150 10.4 65.3 66.7 79.8 96.3 43.1 36.1 29.9 11.1 10.1 9.3 8.5 0.34% 0.35% 0.35% 14.1% 11.3% 9.7%
Nippon Life India AMC# BUY 256 409 430 5.1 12.1 11.8 14.2 17.1 34.9 29.1 24.1 7.3 7.2 6.9 6.3 0.26% 0.27% 0.27% 9.0% 7.1% 6.1%
UTI AMC# BUY 99 779 950 22.0 42.1 34.6 50.7 57.5 22.8 15.6 13.8 2.8 2.6 2.4 2.3 0.20% 0.26% 0.25% 4.5% 3.7% 3.2%
*- Standalone Numbers, # - Consol Numbers, NP - Not Published, $ - Operating RoEV for Life Ins., @ - Book value for ICICI Lombard

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JM Financial India Conference 2023 22 November 2023

APPENDIX I

JM Financial Inst itut ional Secur ities Lim ited

Corporate Identity Number: U67100MH2017PLC296081
Member of BSE Ltd. and National Stock Exchange of India Ltd.
SEBI Registration Nos.: Stock Broker - INZ000163434, Research Analyst - INH000000610
Registered Office: 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025, India.
Board: +91 22 6630 3030 | Fax: +91 22 6630 3488 | Email: jmfinancial.research@jmfl.com | www.jmfl.com
Compliance Officer: Mr. Sahil Salastekar | Tel: +91 22 6224 1073 | Email: sahil.salastekar@jmfl.com
Grievance officer: Mr. Sahil Salastekar | Tel: +91 22 6224 1073 | Email: instcompliance@jmfl.com

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Definition of ratings
Rating Meaning
Buy Total expected returns of more than 10% for stocks with market capitalisation in excess of INR 200 billion and REITs* and more than
15% for all other stocks, over the next twelve months. Total expected return includes dividend yields.
Hold Price expected to move in the range of 10% downside to 10% upside from the current market price for stocks with market
capitalisation in excess of INR 200 billion and REITs* and in the range of 10% downside to 15% upside from the current market price
for all other stocks, over the next twelve months.
Sell Price expected to move downwards by more than 10% from the current market price over the next twelve months.
* REITs refers to Real Estate Investment Trusts.
Research Analyst(s) Certification
The Research Analyst(s), with respect to each issuer and its securities covered by them in this research report, certify that:
All of the views expressed in this research report accurately reflect his or her or their personal views about all of the issuers and their securities; and
No part of his or her or their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this research
report.
Important Disclosures
This research report has been prepared by JM Financial Institutional Securities Limited (JM Financial Institutional Securities) to provide information about the
company(ies) and sector(s), if any, covered in the report and may be distributed by it and/or its associates solely for the purpose of information of the select
recipient of this report. This report and/or any part thereof, may not be duplicated in any form and/or reproduced or redistributed without the prior written
consent of JM Financial Institutional Securities. This report has been prepared independent of the companies covered herein.
JM Financial Institutional Securities is registered with the Securities and Exchange Board of India (SEBI) as a Research Analyst and a Stock Broker having trading
memberships of the BSE Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE). No material disciplinary action has been taken by SEBI against JM Financial
Institutional Securities in the past two financial years which may impact the investment decision making of the investor. Registration granted by SEBI and
certification from the National Institute of Securities Market (NISM) in no way guarantee performance of JM Financial Institutional Securities or provide any
assurance of returns to investors.
JM Financial Institutional Securities renders stock broking services primarily to institutional investors and provides the research services to its institutional
clients/investors. JM Financial Institutional Securities and its associates are part of a multi-service, integrated investment banking, investment management,
brokerage and financing group. JM Financial Institutional Securities and/or its associates might have provided or may provide services in respect of managing
offerings of securities, corporate finance, investment banking, mergers & acquisitions, broking, financing or any other advisory services to the company(ies)
covered herein. JM Financial Institutional Securities and/or its associates might have received during the past twelve months or may receive compensation from
the company(ies) mentioned in this report for rendering any of the above services.
JM Financial Institutional Securities and/or its associates, their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell
the securities of the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) covered under this report or (c) act as an advisor or lender/borrower to,
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Neither JM Financial Institutional Securities nor its associates or the Research Analyst(s) named in this report or his/her relatives individually own one per cent or
more securities of the company(ies) covered under this report, at the relevant date as specified in the SEBI (Research Analysts) Regulations, 2014.
The Research Analyst(s) principally responsible for the preparation of this research report and their immediate relatives are prohibited from buying or selling debt
or equity securities, including but not limited to any option, right, warrant, future, long or short position issued by company(ies) covered under this report. The
Research Analyst(s) principally responsible for the preparation of this research report or their immediate relatives (as defined under SEBI (Research Analysts)
Regulations, 2014); (a) do not have any financial interest in the company(ies) covered under this report or (b) did not receive any compensation from the
company(ies) covered under this report, or from any third party, in connection with this report or (c) do not have any other material conflict of interest at the time
of publication of this report. Research Analyst(s) are not serving as an officer, director or employee of the company(ies) covered under this report.

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JM Financial India Conference 2023 22 November 2023
While reasonable care has been taken in the preparation of this report, it does not purport to be a complete description of the securities, markets or
developments referred to herein, and JM Financial Institutional Securities does not warrant its accuracy or completeness. JM Financial Institutional Securities may
not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. This
report is provided for information only and is not an investment advice and must not alone be taken as the basis for an investment decision.
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Securities may have also issued or may issue, research reports and/or recommendations based on the technical/quantitative analysis of the company(ies) covered
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views/recommendations expressed in such technical research reports could be inconsistent or even contrary to the views contained in this report.
The investment discussed or views expressed or recommendations/opinions given herein may not be suitable for all investors. The user assumes the entire risk of
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Any U.S. person who is recipient of this report that wishes further information regarding, or to effect any transaction in, any of the securities discussed in this
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information contained herein.

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