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Your success is AM
our success
Emkay ©

August 10, 2022

Day 1 of Confluence — our annual conference Nifty: 17,535
Refer to important disclosures at the end of this report Sensex: 58,817

The first day of our annual flagship conference saw a line-up of 55 companies from across India

Main track events and companies hosted on Day-1

This report is solely produced by Emkay Global. The following
Main track events Automobiles Broking person(s) are responsible for the production of the recommendation:

1. Dixon Technologies 5. Ashok Leyland 15. Angel One Sanjay Chawla

(Mr Atul Lall - Vice Chairman Head of Research and Strategist
& MD) 6. UNO Minda 16. 5paisa Capital [email protected]
+91 22 6624 2435
2. ICICI Lombard (Mr. Bhargav 7. Minda Corporation Building Materials
Dasgupta - MD & CEO) 8. Car Trade 17. Century Plyboards India Anish R Jobalia
[email protected]
3. Paytm (Mr. Madhur Deora - 9. Tata Motors 18. Stylam Industries +91 22 6624 2485
CFO)
10. Menon Bearings 19. Greenply Industries
Agri
Banks Capital Goods
1. Jubilant Ingrevia Ltd
11. Indusind Bank 20. Larsen & Toubro
2. Best Agrolife
12. HDFC Bank 21. Carborundum Universal
Asset Management
13. Paytm Cement
3. Nippon AMC
14. IDFC First Bank 22. Dalmia Bharat
4. Aditya Birla Sun Life AMC This document has not been fully edited in the interest of time

Emkay
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Pleaserefer totothe
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defined in the
as defined Securities
in the andand
Securities Futures Act,Act,
Futures Chapter 289289
Chapter of Singapore.
of Singapore.
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
©

Your success is our success

August 10, 2022

Day 1 of Confluence — our annual conference Nifty: 17,535

Refer to important disclosures at the end of this report Sensex: 58,817

Chemicals Insurance Metals Pharma

23. Meghmani Organics 30. Star Health and Allied 40. Jindal Stainless 50. Dr Reddy’s
Insurance
24. Meghmani Finechem 41. Vedanta Power
31. Max Financial
NBFC 51. Adani Green Energy
32. ICICI Prudential Life
Consumer Durables 42. HDFC Retail
Insurance
25. Dixon Technologies 43. PNB Housing 52. Ethos
IT
26. KEI Industries Oil & Gas
33. Tech Mahindra Real Estate
44. GAIL
34. Happiest Minds 53. Mahindra Lifespace Developers
Diversified 45. Petronet LNG
35. Infosys Telecom
27. Adani Enterprises Others
36. Wipro 54. HFCL
46. VIP Industries
37. Birlasoft
FMCG 47. CMS Info Systems Textiles
38. TCS
28. LT Foods 48. Control Print 55. Indocount
Logistics
29. ADF Foods 49. Gravita India
39. Adani Ports & SEZ

Emkay
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www.emkayglobal.comand andBloomberg
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EMKAY<GO>.Please
Pleaserefer totothe
thelast
lastpage
pageofofthe report ononRestrictions onon
Distribution.
Earnings at Risk
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This report is available
intended for '[email protected]' use andrefer
downloaded atthe8/11/2022
report Restrictions
10:45:05 Distribution.
AM In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors 2
defined in the
as defined Securities
in the andand
Securities Futures Act,Act,
Futures Chapter 289289
Chapter of Singapore.
of Singapore.
 Emkay
This report is intended for India
'[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
Equity Research | Specialty Chemicals
©
August 10, 2022
Conference Note

Jubilant Ingrevia Limited Refer to important disclosures at the end of this report
Your success is our success

Headwinds in the short term; long-term outlook intact CMP

Rs473
MCap (Rs bn)
75
TP & Rating
NOT RATED

Key takaways –
 The quarterly earnings were impacted by the double-whammy impact of increase in power & fuel costs as well as subdued demand in the Nutrition and Health solution
segment (on account of the spread of avian & swine flu in the EU and US regions).

 Expounding on the impact of power cost, Company highlighted that it took an EBITDA hit of Rs300-400mn during the quarter; however, coal prices have started easing
and are expected to further cool down post September, once the ban on supply of coal from Coal India is lifted.

 Sustainable EBITDA-margin trajectory: Specialty chemicals at 18-20%; Health and Nutrition segment at 18-20%; and Chemical Intermediates segment at 8-10%
(contingent on RM price trends).

 Management anticipates overall annual volume growth at around 20%, except for the Health and Nutrition segment.

 New products will be margin-accretive.

Financial Snapshot (Consolidated) Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY20 FY21 1m 3m 6m 12m following person(s) are responsible for the production of
Net Sales - 6,841 Absolute Returns -4.0 0.4 -19.4 -22.8 the recommendation:

EBITDA -2 1,042 Rel to Nifty -11.2 -6.6 -19.7 -28.4 Emkay Research
EBITDA Margin (%) - 15.2
APAT -2 635
EPS (Rs) 4.0
EPS (% chg) - -
ROE (%) - 6.6
P/E (x) - 118.9
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 3
 Emkay
This report is intended for '[email protected]'
India use and downloaded at 8/11/2022 10:45:05 AM
Equity Research | Agri Input & Chemicals
©
August 10, 2022
Conference Note

Best Agrolife Refer to important disclosures at the end of this report

Your success is our success

Changing their Product Mix to become profitable CMP

Rs969
MCap (Rs bn)
23
TP & Rating
NOT RATED

Key Meeting Takeaways

 Best Agro has been acquiring patents for its product mix. The company is creating this product mix on its own with the ideology that it will be more beneficial for
farmers in terms of attacking many problems together and would be less hazardous to nature as the dosage of each chemical in the mix is lesser as compared to
individual use.

 Best Agrolife is focusing more on B2C than B2B by growing its distributor network. The reason for focusing on the distributor network is because the company has
received advance payments for products, particularly Ronfen, which is receiving good feed back from the market. The company has a total of ~40 products, of which it
feels 20 can hit the spot and 20 can fail.

 Best Agrolife is aiming towards penetration and, during the course, is expecting that margin might become half. Gross margin in technical sales is around 15%.

 Expecting 20% EBIDTA and 30% revenue for the year and looking to double up market cap by 2025 with no major capex (to the tune of Rs100-150 crore) planned for
the next three years.

 The company has no risk management policy for forex exposures. It is net of an importer; and since there was no hedging done, so last quarter was in loss due to
currency movement.

Financial Snapshot (Standalone) Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY17 FY18 FY19 FY20 FY21 1m 3m 6m 12m following person(s) are responsible for the production of
Net Sales 992 1,292 6,630 6,899 9,055 Absolute Returns 3.9 5.9 -5.2 68.7 the recommendation:

EBITDA 10 -29 111 142 512 Rel to Nifty -3.9 -1.5 -5.5 56.5 Emkay Research
EBITDA Margin (%) 1.0 -2.3 1.7 2.1 5.7
APAT -1 -18 36 87 371
EPS (Rs) 1.5 3.7 15.7
EPS (% chg) - - - 139.5 325.2
ROE (%) - - 3.2 6.9 36.2
P/E (x) - - 629.6 262.9 61.8
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 4
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
India Equity Research | Insurance
©
August 10, 2022
Conference Note

Nippon Life AMC Refer to important disclosures at the end of this report
Your success is our success

Passive Funds – A key ingredient for growth CMP

Rs.305
MCap (Rs bn)
190
TP & Rating
NOT RATED

We hosted Mr. Saugata Chatterjee, Chief Business Officer and Mr. Abhishek Nalwaya, Head- Investor Relations
Key Meeting Takeaways
 The Management stated that the Retail and HNI investors participated in the flows however the volumes were down. The participation of investors in the Equity came
in a staggered manner. Going forward management expects Equity net sales to look positive.

 The company saw the highest volumes in ETFs across the industry. Management said that the HNI and treasury were the major contributors to the ETFs which are
growing well. The retail investors contributed ~15-20% in the ETFs.

 The Management mentioned that the company is increasing its digital presence and the company is taking strong efforts towards data analytics which as a result
would benefit the investors and the partners.

 With the industry struggling with SIP closures, the company has developed a model to predict the behaviour of the investors and will guide the distributor to take
corrective action in order prevent the SIP closure.

 The management stated that the company does not prefer to share the fee income with distributors in the way competition does. Management stated that they had
their own benchmarks and the company continues to maintain profitability.

 The Management believes that the NFO pressures would not be that severe as the buckets across the industry are full ( for top players ) and the acceptability to NFO
fever will reduce.

Financial Snapshot Price Performance (%)

(Rs mn) FY19 FY20 FY21 FY22 1m 3m 6m 12m This report is solely produced by Emkay Global. The

Total Revenue 16,499 11,932 14,193 15,356 Absolute Returns 6.2 3.7 -7.1 -23.2 following person(s) are responsible for the production of
the recommendation:
Rel to Nifty -1.7 -3.5 -7.4 -28.8
EBITDA 5,390 6,085 5,575 7,907
PAT 4,871 4,158 6,794 7,434
Avinash Singh
[email protected]
EPS 8.0 6.8 11.1 12.05 +91 22 6612 1327
Net Worth 25,700 25,931 31,003 34,778
Mahek Shah
ROE (%) 19.7% 16.1% 23.9% 22.6% [email protected]
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022) +91 22 6612 1218

Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 5
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
India Equity Research | Insurance
©
August 10, 2022
Conference Note

Aditya Birla Sun Life AMC Refer to important disclosures at the end of this report
Your success is our success

On right track amid volatility CMP

Rs437
MCap (Rs bn)
126
TP & Rating
NOT RATED

We hosted Parag Joglekar, CFO and Prakash Bhogale, Head - Investor Relations
Key Meeting-Takeaways
 A marginal increase in contribution from Equity was driven by a slight outflow in fixed income.

 Management stated that Company’s primary focus remains on customer acquisition. For the quarter ended June 2022, the company added around 2 lakh new folios,
taking the total number of folios to 8 million. Management mentioned that the company managed to add 2 lakh folios in spite of the challenges led by customer
sentiment and volatile markets.

 With the ‘increase in product per customer’ being the main agenda of the company, the management said that the company is constantly endeavouring to leverage the
bouquet of existing products with launch of new products focussed on building market share in the B-30 segment and to augment the SIP book.

 Management stated that the profit in Q1FY23 was on the lower side, in spite of a reasonably good operating performance. The lower profits were owing to the lower
other income, engendered by market fluctuations and MTM losses.

 Management said that the company is looking to launch a multi asset fund and has already filed related documents with the SEBI; post approval from the SEBI, the
fund shall be launched in September. Going forward, it will be a mix of promoting existing products and NFOs.

 Over coming years, Management expects Equity to contribute ~40% of the AUM mix, with the balance 60% coming from fixed income or debt.

Financial Snapshot Price Performance (%)

(Rs mn) FY19 FY20 FY21 FY22 1m 3m 6m 12m This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
Total Revenue 14,072 12,348 12,058 14,085 Absolute Returns 1.3 -12.6 -16.7 N.A the recommendation:
Rel to Nifty -6.3 -18.7 -17.0 N.A
PAT 4,468 4,944 5,263 6,728
Avinash Singh
EPS (Rs) 15.5 17.2 18.3 23.4 [email protected]
+91 22 6612 1327
Net Worth 12,206 13,169 17,046 21,965
Mahek Shah
AUM (Rs bn) - 2023 2592 2,782 [email protected]
+91 22 6612 1218
ROE (%) - 39.00% 34.80% 34.50%

Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 6
 Emkay
This report is intended for '[email protected]'
India use and downloaded at 8/11/2022 10:45:05 AM
Equity Research | Auto & Auto Ancillaries
©
August 10, 2022
Conference Note

Ashok Leyland Refer to important disclosures at the end of this report

Your success is our success

Key beneficiary of domestic MHCV sales upcycle CMP

Rs145
MCap (Rs bn)
426
TP & Rating
Rs178 | BUY

We hosted Mr. Gopal Mahadevan, Chief Financial Officer, and Mr. Balaji KM, Deputy Chief Financial Officer.
Key takeaways were:
 Cargo MHCV demand outlook remains positive due to favorable macro environment and government’s thrust on infra spending. Retail customers (small operators) are
gradually coming back to the market.
 Bus demand remains positive on re-opening of offices and educational institutions. The company has better market share in the bus segment.
 Q1 LCV sales have been impacted by semiconductor shortages. Improving supplies should support ramp-up in production volumes ahead.
 MHCV market share has improved as: 1) new products have been well-accepted, 2) network in north and east regions has improved, and 3) slight shift from CNG to
diesel vehicles. Management expects recent market share gains to sustain.
 The company has implemented multiple price increases. Discounts continue to be on the higher side, but retentions are improving.
 Softening of steel prices should reflect from Q2. However, commodity inflation pressure continues in castings, forgings, and tyres etc.
 Management aspires to operate at an EBITDA margin of 10-11%.
 Expected capex for FY23 is Rs7,500mn.
 Switch Mobility India has an order book of 600 e-buses related to BEST, BMTC, and other private orders. E-LCVs are expected to be introduced in Q4FY23. A gradual
shift is expected towards e-LCVs.
 Hinduja Leyland Finance: AUM size is at Rs307bn; Q1 disbursements stood at Rs34.8bn; PAT is Rs970mn; and NNPA is 2.3%. Management expects listing of this
entity soon.

This report is solely produced by Emkay Global. The

Financial Snapshot (Standalone) Price Performance (%) following person(s) are responsible for the production of
the recommendation:
(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 12m
Revenue 153,015 216,883 313,648 368,008 405,929 Absolute Returns 0.8 21.5 8.4 8.2 Raghunandhan N L
EBITDA 5,351 9,945 24,895 36,244 40,298 Rel to Nifty -6.7 13.0 8.0 0.4 [email protected]
+91 22 6624 2428
EBITDA Margin (%) 3.5 4.6 7.9 9.8 9.9
APAT (3,016) 310 11,918 20,499 23,636 Mumuksh Mandlesha
EPS (Rs) (1.0) 0.1 4.1 7.0 8.1 [email protected]
+91 22 6612 1334
EPS (% chg) (181.0) 0.0 3,744.4 72.0 15.3
ROE (%) (4.2) 0.4 15.5 23.7 23.7 Bhargava Perni
P/E (x) (141.3) 1,375.0 35.8 20.8 18.0 [email protected]
+91 22 6624 2429
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 7
 Emkay
This report is intended for '[email protected]'
India use and downloaded at 8/11/2022 10:45:05 AM
Equity Research | Auto & Auto Ancillaries
©
August 10, 2022
Conference Note

UNO Minda Refer to important disclosures at the end of this report

Your success is our success

EV parts business should drive medium-term growth CMP

Rs550
MCap (Rs bn)
314
TP & Rating
Rs600 | BUY

Key Meeting-Takeaways
 Revenue growth (excluding commodity inflation impact) ahead should be 1.5x of industry volume growth.
 In PVs, the increasing share of UVs will improve content/vehicle. The company is working on gaining share from Korean OEMs in segments such as switches,
acoustics, blow-molding, and alloy wheels.
 Annual order wins from EV OEMs stand at Rs9.8bn. Peak revenue is achieved from three years of commencement. The company caters to 6-7 selected new-age
E-2W OEMs. Products like chargers and smart plugs are witnessing faster penetration. Management reiterated that EV business revenue is expected to increase from
<Rs1bn in FY22 to Rs15-20bn in 5-6 years, catering to both domestic and overseas markets.
 EV transition is expected to negatively impact sales of few products such as air filters and CNG over the medium term. Currently, both the products are seeing robust
demand. To address higher demand, the company is using more outsourcing approach to limit investments.
 Sensor revenue stood at Rs830mn in Q1FY23 and is expected to reach over Rs5bn annual revenue in the next three years. Products such as tyre pressure
monitoring system could witness traction led by regulation.
 Management expects aftermarket to double over the next 4-5 years. Demand is led by new products addition (alloy wheels), increased distribution network, and shift
to single brand (Uno Minda). Moreover, the company is launching a campaign for Uno Minda brand to further accelerate growth. Aftermarket has 2-3% higher margins
than blended margins. Currently, Minda is the second largest player after Bosch and expects to reduce the gap over the next 4-5 years.
 Overseas markets’ focus is on expanding marketing network in countries such as Thailand and other markets.
 Higher aluminium prices and increased energy cost in the casting segment are impacting margins. The company expects pass-through of cost inflation ahead and
retain EBITDA margin target at 11-12% for FY23.
 ROCE’s target is 20% after three years of commencement of the plant. Blended ROCEs are expected to be lower during continuing growth capex.
Financial Snapshot (Consolidated) Price Performance (%) This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 12m the recommendation:
Revenue 63,737 83,130 1,04,318 1,25,034 1,43,950 Absolute Returns 7.4 25.4 7.1 53.7
Raghunandhan N L
EBITDA 7,250 8,854 11,286 15,585 18,076 Rel to Nifty -0.6 16.7 6.7 42.6
[email protected]
EBITDA Margin (%) 11.4 10.7 10.8 12.5 12.6 +91 22 6624 2428
APAT 2,052 3,558 5,336 8,166 9,869 Mumuksh Mandlesha
EPS (Rs) 3.7 6.2 9.3 14.3 17.3 [email protected]
EPS (% chg) 10.4 69.2 50.0 53.0 20.9 +91 22 6612 1334
ROE (%) 10.0 12.5 14.7 19.8 20.8 Bhargava Perni
P/E (x) 149.3 88.2 58.8 38.4 31.8 [email protected]
+91 22 6624 2429
Earnings at Risk
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)

Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 8
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
India Equity Research | Auto Ancillaries
©
August 10, 2022
Conference Note

Minda Corporation Refer to important disclosures at the end of this report

Your success is our success

Expect to outpace underlying industry ahead; EV parts to drive CMP MCap (Rs bn) TP & Rating
medium-term growth Rs241 58 NOT RATED

We hosted Mr. Anshul Saxena, Head- Strategy and M&A, and Ms. Pushpa, Investor Relations.
Key takeaways are:
 Outlook: Management expects to outpace the underlying auto industry’s growth by 10-12% in the next few years, led by increasing content per vehicle due to new
products, premiumization, and regulatory changes, across domestic and overseas markets. Profitability is likely to improve in the next three years, with an EBITDA
margin of 12%+ and ROCE of 25%+.
 Exports are expected to see a 25% CAGR, led by strong order book in both North America and Europe. Die-casting export revenue is expected to double in the next
three years. The company is also setting up a marketing team in Europe to explore sales opportunities for lock-sets, starters, and alternator motors.
 The aftermarket segment should witness a 20% CAGR for the next 3-5 years, led by new products in 2W/3Ws, increased distribution reach, and new customers
(overseas markets such as Latin America).
 EV revenue is expected to be Rs200-250mn in FY22, Rs1bn+ in FY23, and Rs2bn+ in FY24. The company has won orders from OEMs such as Bajaj Auto, TVS
Motors, Ola Electric, and Ampere. The company expects competition from both local players and imports (especially from China). Addressable market in E-2Ws is 4-
5x higher than ICEs.
 New product development has been the focus area, with aggressive efforts at the R&D center, collaborations (tie-ups/JVs), and investments in start-ups. Minda
should get PLI scheme incentives. So far, it has applied for incentives for 17 products under the scheme. The government may add more products to the scheme in
future.
 Minda is focusing on several products, including 2W/4W keyless solutions, telematics systems, digital clusters, sensors (side stand, rain/light, TPMS, etc.), 2W
advanced driver assistance systems, EV parts (power electronics, BMS, chargers, controllers), antennas, kinematics, die-casting parts (motor/battery housings), and
other engineering solutions.
 Current localization for wiring harness is 20% and the target is to take this to 50-60% in the next three years.
 New orders: The company has won lifetime orders of Rs25bn in Q1. Of this, 20% of orders relate to EVs and 90% of orders are power-train agnostic.
Financial Snapshot (Consolidated) Price Performance (%)
This report is solely produced by Emkay Global. The following
(Rs mn) FY18 FY19 FY20 FY21 FY22 1m 3m 6m 12m
person(s) are responsible for the production of the recommendation:
Net Sales 25,935 30,920 22,226 23,679 29,759 Absolute Returns 13.8 1.6 26.8 81.1
Raghunandhan N L
EBITDA 2,756 2,941 -876 1,793 2,956 Rel to Nifty 5.3 -5.5 26.4 68.0 [email protected]
EBITDA Margin (%) 10.6 9.5 -3.9 7.6 9.9 +91 22 6624 2428

APAT 1,442 1,575 -1,988 528 1674 Mumuksh Mandlesha

EPS (Rs) 6.0 6.6 2.2 7.0 [email protected]
+91 22 6612 1334
EPS (% chg) 57.8 9.2 - - 217.1
Bhargava Perni
ROE (%) 21.2 16.4 - 5.0 13.6 [email protected]
P/E (x) 40.0 36.6 - 109.3 34.5 +91 22 6624 2429
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 9
 Emkay
This report is intended for '[email protected]'
India Equity Researchuse and downloaded at 8/11/2022 10:45:05 AM
| Others
©
August 10, 2022
Conference Note

CarTrade Tech Refer to important disclosures at the end of this report

Your success is our success

Strong growth runway across businesses CMP

Rs631
MCap (Rs bn)
29
TP & Rating
NOT RATED

We hosted Ms. Aneesha Menon, Chief Financial Officer, and Mr. Vikram Alva, Chief Strategy Officer.
Key takeaways are:
 The company has been rated the No. 1 PV and 2W auto portal in India, based on relative online search popularity on Google Trends when compared to our key
competitors during April 2020 to June 2022.
 The company’s auction listings stand at an annualized level of 1.1mn. The company’s efforts would be to increase the listings going forward.
 The company has 180+ physical locations for Automalls and Absure. The company plans to have 200 Absure outlets by FY24 with more focus on each and every
center.
 ESOPs in Q1FY23 stood at Rs53mn and marginal increases can be seen going forward. FY23 ESOPs can be around Rs250-300mn.
 Average monthly unique visitors stand at 31mn, and share of organic unique visitors stands at 84.68%. To better monetize large unique visitors, the company is
evaluating more services to customers through both organic and inorganic routes.
 The company has cash reserves of Rs10bn for acquisitions. As of now, the company has not found anything meaningful. The company can look at opportunities in the
space of financing, EVs, product, and technology.
 OEM and dealer digital spending has been growing and this will be beneficial for growth of the new car business.
 The company expects the duopoly (Cartrade and Carwale) in the new car business to continue.

Financial Snapshot (Standalone) Price Performance (%)

This report is solely produced by Emkay Global. The following
(Rs mn) FY19 FY20 FY21 1m 3m 6m 12m
person(s) are responsible for the production of the recommendation:
Net Sales 2,432 2,983 2,497 Absolute Returns -6.1 3.7 -5.1 N/A
Raghunandhan N L
EBITDA 301 403 398 Rel to Nifty -13.0 -3.5 -5.4 N/A [email protected]
EBITDA Margin (%) 12.4 13.5 15.9 +91 22 6624 2428
APAT 36 115 776 Mumuksh Mandlesha
EPS (Rs) 48.4 63.4 254.0 [email protected]
+91 22 6612 1334
EPS (% chg) - 31.1 300.4
ROE (%) 0.3 1.0 5.5 Bhargava Perni
[email protected]
P/E (x) 13.0 9.9 2.5 +91 22 6624 2429
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 10
 Emkay
This report is intended for '[email protected]'
India use and downloaded at 8/11/2022 10:45:05 AM
Equity Research | Auto & Auto Ancillaries
©
August 10, 2022
Conference Note

Tata Motors Refer to important disclosures at the end of this report

Your success is our success

Improving supplies and strong order book to drive JLR growth; CMP MCap (Rs bn) TP & Rating
India business to sustain momentum Rs468 1,670 Rs530 | BUY

We hosted Mr. Dhiman Gupta, Vice President, Treasury and Investor relations.
Key takeaways were:
JLR
 Wholesale volumes are on track to improve to 90,000 in Q2 and are expected to progressively improve thereafter.
 Strong demand for the new Range Rover has pushed the order book to a new record at more than 200,000 units (New Range Rover: 62,000 units; Defender: 47,000
units; and New Range Rover Sport: 20,000 units). The order book increased by 32,000 units in Q1FY23.
 Higher volumes and cost savings should support margins ahead. The target remains at 5% EBIT margin and GBP1bn positive free cash flow in FY23. The cost-
savings program (Refocus) has led to savings of GBP250mn in Q1FY23, and full-year target stands at GBP1bn+. FY26 EBIT margin target remains at 10%.

India CV/PV businesses

 Cargo CV demand remains buoyant on account of improving fleet utilization, government thrust on infra spending, and freight rates. Passenger CV demand is robust
because of re-opening of offices/educational institutions, pickup in the tour and travels segment, and orders from state transport undertakings.
 PV demand is strong with an order book up to three months for ICEs and up to seven months for EVs.
 In E-PVs, market share stood at 88% in Q1FY23. Vehicles are now available in 90 cities. Over the medium term, we expect E-PV market share to be higher than the
existing ICE share.
 The recent reduction in commodity prices should support margins in H2FY23. India CV EBITDA margin is expected to improve to double digits on account of better
scale, cost savings, and favourable commodity prices.

Others
 Consolidated automotive debt stands at Rs607bn in June 2022 vs. Rs613bn in June 2021 and Rs487bn in March 2022. The target is to be near-zero net automotive
debt by FY24, as a result of working capital reduction, strong cash flow generation in JLR/India, and divestments, among others.
Financial Snapshot (Consolidated) Price Performance (%)
This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
(Rs mn) FY21 FY22 FY23E FY24E FY25E the recommendation:
1m 3m 6m 12m
Revenue 2,497,948 2,784,536 3,568,621 4,022,285 4,423,325 Absolute Returns 6.0 14.6 -5.0 56.1 Raghunandhan N L
EBITDA 305,553 248,132 389,606 481,629 531,520 Rel to Nifty -1.8 6.6 -5.3 44.8 [email protected]
EBITDA Margin (%) 12.2 8.9 10.9 12.0 12.0 +91 22 6624 2428

APAT (14,225) (107,188) 57,205 135,621 166,965 Mumuksh Mandlesha

EPS (Rs) (3.7) (28.0) 14.9 35.4 43.6 [email protected]
+91 22 6612 1334
EPS (% chg) 0.0 0.0 0.0 137.1 23.1
ROE (%) (2.4) (21.5) 12.1 23.9 23.5 Bhargava Perni
P/E (x) (126.0) (16.7) 31.3 13.2 10.7 [email protected]
+91 22 6624 2429
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 11
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
India Equity Research | Auto Ancillaries
©
August 10, 2022
Conference Note

Menon Bearings Refer to important disclosures at the end of this report

Your success is our success

Scaling towards Rs3bn revenue by FY24 CMP

Rs90
MCap (Rs bn)
5
TP & Rating
NOT RATED

We hosted Mr. Arun Aradhye, Chief Financial Officer

Key takeaways were:
 The company started operations in 1994. The company is into bi-metal bearings and aluminium castings, catering to auto and non-auto applications. The company
competes with Federal Moghul, Bimetal Bearings, and Kirloskar in India. The company has ~37% share of revenue from exports from 24+ countries such as USA,
Brazil, Mexico, Netherlands, Africa, and Japan.
 The company has outpaced the industry’s growth over the past 10 years and expects to increase sales from Rs2bn in FY22 to Rs3bn in FY24 and profits from
Rs245mn in FY22 to Rs400mn in FY24. EBITDA margin is expected to expand from 21% in FY22 to 23% in FY24. It has better return ratios than peers, as it makes
own machines that are used for manufacturing purposes and has avoided the low-margin PV segment.
 The company has a strong presence with share of business of 50%+ with Tata Motors, 80% with Sonalika, 100% with John Deere, 100% with Mahindra Tractors
(Spares), and 40% with Escorts, among others.
 FY22 Revenue mix: 49% OEM, 37% exports, 7% aftermarket, and 7% Others. The company caters to tractors (27%), HCV/MHCV (16%), brakes (16%), transmission
(7%), steering (15%), and electrical/generator/compressors (20%).
 FY22 Revenue mix for products: 25% aluminium casting and 75% bi-metal bearings, bushes and washers. Management expects both segments to see a revenue
CAGR of 20-25% over the next three years.
 Capacity stands at 4.5mn pieces, which is being expanded to 5.5mn pieces. Current utilization stands at 70-75%. Cumulative capex plan for the next three years is at
Rs300mn.
 The company caters to marine engines, construction equipment, commercial vehicles, and tractors, among others. Hence, it is less challenged by EV penetration,
which is expected to be more pronounced in other segments. The company would work towards product development for EVs.
 In the aftermarket segment, the company has built a strong network of 1,000+ distributors and 10,000+ retailers.

Financial Snapshot (Standalone) Price Performance (%)

This report is solely produced by Emkay Global. The following
(Rs mn) FY17 FY18 FY19 FY20 FY21 1m 3m 6m 12m
person(s) are responsible for the production of the recommendation:
Net Sales 1,236 1,457 1,740 1,391 1,495 Absolute Returns 11.0 10.7 -0.7 9.9
Raghunandhan N L
EBITDA 333 372 430 298 345 Rel to Nifty 2.7 3.0 -1.1 1.9 [email protected]
EBITDA Margin (%) 26.9 25.6 24.7 21.4 23.1 +91 22 6624 2428

APAT 191 211 253 144 188 Mumuksh Mandlesha

EPS (Rs) 3.4 3.8 4.5 2.6 3.4 [email protected]
+91 22 6612 1334
EPS (% chg) 10.3 20.0 -43.1 30.6
Bhargava Perni
ROE (%) 29.8 29.9 30.2 16.1 20.1 [email protected]
P/E (x) 26.4 24.0 20.0 35.1 26.9 +91 22 6624 2429
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 12
 Emkay
This report is intended for '[email protected]'
India Equity Research | use and downloaded at 8/11/2022 10:45:05 AM
Banking
©
August 10, 2022
Conference Note

IndusInd Bank Refer to important disclosures at the end of this report

Your success is our success

Growth, return ratios set to improve; MD’s term extension will CMP MCap (Rs bn) TP & Rating

be key monitorable Rs1051 814.3 Rs1275 | Buy

We hosted Indrajit Yadav, Head - Strategy & IR of IndusInd Bank, during our conference
Key Meeting-Takeaways
 Overall credit growth is accelerating, with continued strong traction in the corporate book and the rebounding retail growth. Within retail/consumer banking, the bank
plans to accelerate growth in its traditional growth segments (VF, MFI) recovering from the cyclical lows as well as to ramp up the used-vehicle, affordable-housing,
gold, tractor, SME and individual-MFI loan segments. The bank guides for better credit growth from the current 15-18%, in the next 3 years (PC6 cycle).

 Margins will remain range-bound at 4.1-4.25%, which the bank remains confident about maintaining, on the back of re-accelerating retail growth and re-pricing of the
book.

 The bank believes that both, asset quality and management issues, are largely behind in the MFI business The bank has been mainly following the JLG model, but
would now be looking at lending to individuals with higher ticket sizes, similar to other players, thereby supporting growth in the MFI business.

 C/I ratio should remain at around 43% as the bank continues to invest, but should gradually moderate as income growth accelerates. The bank has guided to credit
cost of 120-150bps.

 We believe IIB has largely recovered from the asset-quality shock and now plans to accelerate credit growth, backed by a better retail liability profile; thus, it could
drive scale with profitability (higher RoAs >1.7%) on a sustainable basis. We have a BUY rating on the stock, with a TP of Rs1,275 (1.7x Jun’24E ABV). That said, the
decision of the Board of the bank, on extending the current MD’s term (October 2022) and the RBI approval thereafter, will be keenly watched (Jan/Feb 2023).

Financial Snapshot (Standalone) Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 12m
following person(s) are responsible for the production of
Net income 2,00,864 2,24,085 2,49,599 2,86,895 3,35,735 Absolute Returns 23.8 14.7 12.0 2.0 the recommendation:

Net profit 28,363 48,046 67,374 83,582 1,02,313 Rel to Nifty 14.5 6.7 11.6 -5.4 Anand Dama
[email protected]
EPS (Rs) 36.7 62.0 86.9 107.8 132.0
+91 22 6624 2480
ABV (Rs) 538.6 589.1 657.7 744.2 849.9
Heet Khimawat
RoA (%) 0.8 1.3 1.6 1.7 1.8 [email protected]
RoE (%) 7.3 10.6 13.3 14.7 15.9 +91 22 6612 1275
PE (x) 28.6 16.9 12.1 9.7 8.0 Dixit Sankharva
P/ABV 2.0 1.8 1.6 1.4 1.2 [email protected]
+91 22 6612 1281
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 13
 Emkay
This report is intended for '[email protected]'
India Equity Research | use and downloaded at 8/11/2022 10:45:05 AM
Banking
©
August 10, 2022
Conference Note

HDFC Bank Refer to important disclosures at the end of this report

Your success is our success

Sustainable long-term RoA remains the focus CMP

Rs1461
MCap (Rs bn)
81,197.9
TP & Rating
Rs1800 | Buy

We hosted Mr. Bhavin Lakhpatwala and Mr. Ajit Shetty, SVP Finance and Head IR and Strategy
Key Meeting Takeaways
 HDFC Bank is working on changing its deposit mix towards more granular small-size term deposits (Rs15,000-20,000), which earlier used to be more inclined towards
CASA deposits. To achieve this, management has incentivized branch managers. The bank expects some challenges in growing deposits in deeper geographies,
which shall be a key focus area for the bank.
 In the long run, the bank expects margins to see an uptick, with share of retail/SME growing and leading to improved yields. In relation to the merger, management
does not expect any second order effects of the liquidity-squeeze coming up. The bank remains confident on grandfathering Rs1.15trn liabilities of HDFC Ltd., subject
to RBI’s approval.
 The bank has started integration of the customer data of HDFC Ltd. for risk profiling and experimenting the new models. Of HDFC Ltd.’s existing products, the bank
can carry out with home loans (75% of the HDFC Ltd.’s book). Almost 85% of the non-individual book can sit on the bank’s balance sheet, while the remaining 15% will
have to be sold off.
 On the provisions front, management has guided to continue with keeping counter-cyclical provisions. Better revenue growth and declining credit cost in the coming
quarters will aid profitability and, thus, sustain RoAs around 2%.
 Though the lack of clarity about the merger structure remains a near-term overhang, the mortgage business should be long-term RoE-accretive for the bank. Thus, we
retain our long-term Buy rating with a TP of Rs1,800 (valuing the core bank at 3x Jun’24E ABV) and a subs valuation of Rs78.

Financial Snapshot (Standalone) Price Performance (%)

(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 12m This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
Net income 9,00,843 10,15,195 11,46,506 14,02,191 16,86,318 Absolute Returns 4.6 11.0 0.0 -2.1
the recommendation:
Net profit 3,11,165 3,69,614 4,38,082 5,19,132 6,12,675 Rel to Nifty -3.1 3.2 -0.3 -9.1
Anand Dama
EPS (Rs) 56.6 66.8 78.9 93.5 110.3
[email protected]
ABV (Rs) 364.3 428.3 496.6 578.9 674.7 +91 22 6624 2480
RoA (%) 1.9 1.9 1.9 1.9 1.9 Heet Khimawat
RoE (%) 16.6 16.7 16.8 17.1 17.3 [email protected]
+91 22 6612 1275
PE (x) 29.1 20.7 17.5 14.8 12.5
P/ABV 3.8 3.2 2.8 2.4 2.1 Dixit Sankharva
[email protected]
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022) +91 22 6612 1281
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 14
 Emkay
This report is intended for '[email protected]'
India Equity Research | use and downloaded at 8/11/2022 10:45:05 AM
Banking
©
August 10, 2022
Conference Note

One 97 Communications (Paytm) Refer to important disclosures at the end of this report
Your success is our success

On course to turn operationally profitable CMP

Rs834
MCap (Rs bn)
541.3
TP & Rating
NR

We hosted Mr. Madhur Deora, President and Group CFO

Key Meeting Takeaways
• The company has created a high revenue-generating payments business despite rising share of UPI GMV and is building a strong loan distribution business, leading
to meaningful improvement in its contribution margin to 43%. With 28mn merchants and 75mn MTUs, the company plans to increase customer engagement and, thus,
improve revenue per customer. Sound box business has been a major success, taking out the early hesitance among merchants to accept digital payments.
• The company remains confident on turning EBIDTA (ex. ESOP) positive by September 2023, mainly led by improving net payment margins, scaling up the lending
business, and managing operational cost. Share of financial services business (which majorly constitutes lending) in operational revenue has increased to 16% from
6% last year and has brought down the operational drag.
• Paytm Postpaid customer share is just 4% of the company’s MTU and, thus, provides a long runway for growth. The company does not have any FLDG arrangement
and its healthy lending rates are mainly due to better sourcing payouts along with collection fee.
• Paytm favors the current regime of zero MDR on UPI as it has been a strong customer-acquisition engine for the industry. That said, any regulatory move to introduce
MDR on UPI, which looks remote, could bump up revenue for Paytm and would be welcomed. The company does not expect any MDR reduction on wallets but would
support any regulatory move.
• We believe improved visibility on operational profitability has fueled the recent upmove in the stock, after a free fall post the IPO. Currently, we do not have a rating on
the stock.

Financial Snapshot (Consolidated) Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY19 FY20 FY21 FY22 1m 3m 6m 12m
following person(s) are responsible for the production of
Revenue from op. 32,320 32,808 28,024 49,742 Absolute Returns 19.5 47.0 -11.0 NA the recommendation:

Contribution Profit (19,980) (2,377) 3,625 14,981 Rel to Nifty 10.6 37.7 -12.3 NA Anand Dama
Contri Margin (%) (61.8) (7.2) 12.9 30.1 [email protected]
+91 22 6624 2480
EBITDA (40,184) (23,745) (13,829) (20,501)
PAT (42,402) (28,864) (16,270) (23.505) Heet Khimawat
[email protected]
EPS (73.7) (47.8) (26.9) (36.2) +91 22 6612 1275
ROE (%) (73.0) (41.5) (22.3) (22.8)
Dixit Sankharva
P/B (x) 4.2 6.1 7.7 3.8 [email protected]
+91 22 6612 1281
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 15
 Emkay
This report is intended for '[email protected]'
India Equity Research | use and downloaded at 8/11/2022 10:45:05 AM
Banking
©
August 10, 2022
Conference Note

IDFC First Bank Refer to important disclosures at the end of this report
Your success is our success

On the path to recovery CMP

Rs45
MCap (Rs bn)
278
TP & Rating
NOT RATED

We hosted V. Vaidyanathan, MD & CEO and Saptarshi Bapari, IR − IDFC First Bank
Key Meeting-Takeaways
 Management guides for continued focus on increasing share of the secured retail portfolio and expects loan growth at 20-25%. The bank has issued +1mn credit cards
since Jan 2021, with the credit card book now at Rs23bn. For the bank, the focused growth segments shall be Home Loans, SME and LAP.
 CASA ratio remains stable at 50%, leading to lower CoF; the bank has thus been able to maintain industry-level high margins at 5.9%. Higher cost-to-income (C/I) ratio
remains an irritant, but should trend down to less than 50% from the current 75%, supported by faster growth in income at 30% and slower cost growth at 20%.
 The bank remains confident about the improving asset quality. One lumpy toll-based project (Rs7.8bn), which slipped during Covid wave-2, is expected to be resolved
within the next 2 years and thus help to improve GNPA ratio by 50bps. The bank guides to credit cost at <1.2% for FY23E, due to strong recoveries, and should thus
support profitability.
 Covid has caused a hiccup, but the bank’s long-term strategic focus remains on maintaining credit quality, bringing down C/I ratio and reaching an RoE range of 13-
15% over the next 3-4 years.
 We believe the bank has done well on the liability front, but sustaining the momentum in a rising-interest rate scenario as well as bringing down cost ratios will be a key
monitorable. Currently, we do not have a rating on the stock.

Financial Snapshot (Standalone) Price Performance (%)

(Rs mn) FY18 FY19 FY20 FY21 FY22 1m 3m 6m 12m This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
Net income 29,160 41,377 73,575 92,435 129,282 Absolute Returns 32.3 15.5 -4.5 -9.2
the recommendation:
Net profit 8,593 -19,442 -28,642 4,523 1,455 Rel to Nifty 22.4 7.5 -4.8 -15.8
Anand Dama
EPS (Rs) 2.5 -4.1 -6.0 0.8 0.2
[email protected]
ABV (Rs) 43.1 36.5 30.6 28.9 31.6 +91 22 6624 2480
RoA (%) 0.7 -1.3 -1.8 0.3 0.1 Heet Khimawat
RoE (%) 5.8 -11.6 -17.1 2.7 0.7 [email protected]
+91 22 6612 1275
PE (x) 17.7 -11.0 -7.5 56.0 190.8
P/ABV 1.0 1.2 1.5 1.5 1.4 Dixit Sankharva
[email protected]
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022) +91 22 6612 1281
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 16
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
India Equity Research | Insurance
©
August 10, 2022
Conference Note

Angel One Refer to important disclosures at the end of this report

Your success is our success

Super app in the making CMP

Rs1,288
MCap (Rs bn)
107
TP & Rating
NOT RATED

We hosted Mr. Vineet Agarwal, CFO, and Mr. Hitul Gutka, Head - Investor Relations
Key Meeting Takeaways
 Angel One shifted from a feet-on-street model to a tech-enabled platform business model. The company used to acquire 5-10k clients per month through its 3000+
sales development personnel. Now, it is on the verge of becoming a seamless one-stop shop for all broking and wealth management needs under a Super app. It has
already launched the iOS version and the Android version is expected in the next one month.

 The company has made a slew of top-notch tech talent by getting Silicon-valley experienced people on-board as Chief Tech Officer, Product and Tech Officer, etc. and
has a strong team of 60-70 techies to lead its digital transformation. The focus continues to remain on providing a smooth interface and ensuring continuous uptime.
The company plans to incur Rs0.8-1bn on capex during the year to expand its digital capabilities. Angel One has spent Rs250-300mn till date on development of the
Super app in the last 15-18 months.

 After migrating to a flat pricing structure, the company experienced growth in average daily orders in over 80% instances despite the index correcting by 5%.
Management is confident of the company’s business model and strongly believes that the engines will facilitate robust growth from target markets.

 The company generated a quarterly run-rate of 1.4mn additions in the last 4-5 quarters with a target breakeven of two quarters. The company continues to acquire
customers with profitable economics at the forefront. The company indicated FY23E performance to be slightly weak due to a high base in FY22. The company also
expects broking to contribute 60-70% to the business even after three years on a strong broking business outlook. About 10-15% of its customers contribute to 70-75%
of the broking business. The company plans to expand the reach of its Super app by adding new channels gradually like insurance, ETFs, bonds, etc. besides plans to
obtain a mutual fund license. The company also plans to increase the use of cohort-matching to acquire new customers through the use of AI and ML in its business
operations.
This report is solely produced by Emkay Global. The
Financial Snapshot Price Performance (%) following person(s) are responsible for the production of
the recommendation:
(Rs mn) FY19 FY20 FY21 FY22 1m 3m 6m 12M
Total Revenue 7,841 7,547 12,990 23,051 Absolute Returns -0.1 -11.3 -4.4 -0.5 Avinash Singh
PAT 798 823 2,969 6,247 Rel to Nifty -7.6 -17.5 -4.7 -7.7 [email protected]
+91 22 6612 1327
EPS 11.09 12.03 37.76 74.52
Net Worth 5,314 5,914 11,310 15,844 Mahek Shah
[email protected]
ADTO Market Share - Cash (%) - 6.7% 20.9% 21.2% +91 22 6612 1218
ADTO Market Share - F&O (%) - 14.0% 16.3% 13.9%
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 17
 Emkay
This report is intended for '[email protected]'
India Equity Research |use and downloaded at 8/11/2022 10:45:05 AM
Broking
©
August 10, 2022
Conference Note

5 Paisa Capital Refer to important disclosures at the end of this report

Your success is our success

Customer Quality in Focus CMP

Rs.279
MCap (Rs bn)
8
TP & Rating
NOT RATED

We hosted Mr. Prakash Gagdani, CEO

Key Meeting Takeaways
 Management said that customer-acquisition cost was higher during the quarter as the company planned on acquiring only quality customers. However, management is
working towards reducing the customer-acquisition cost and the company is positive that there is further scope to reduce acquisition costs.

 Management expects to see further improvement in customer experience and cost reduction in the coming quarters with further improvement in technology products.
The company continues to focus on growth, led by acquisition of quality customers, increased revenue, cost optimisation, and ultimately increase profits.

 Having acquired 2.28 lakh customers, management stated that having understood where the growth trajectory is exactly moving, it does not expect any downtrend
going forward and the effort will be to move both quantity and quality in the right direction.

 Management stated there was a temporary spike in the fixed cost-to-income ratio as the company has been investing in acquiring talent in the product and technology
space and has been upgrading infrastructure and software.

 The company saw an uptick in new accounts during the past 24 months; however, management said the new account addition would not always convert into revenue
growth.

Financial Snapshot Price Performance (%)

1m 3m 6m 1yr This report is solely produced by Emkay Global. The
(Rs mn) FY18 FY19 FY20 FY21 FY22
following person(s) are responsible for the production of
Absolute Returns 2.3 -12.9 -27.9 -45.6 the recommendation:
Total Revenue 197 607 1,081 1,938 2,975
Rel to Nifty -5.3 -19.0 -28.1 -49.5
Avinash Singh
APAT -253 -190 -79 147 138
[email protected]
+91 22 6612 1327
Networth 629 449 1,383 1,561 3,740
Mahek Shah
Net Profit Margin -128.7% -31.3% -7.3% 7.6% 4.6% [email protected]
+91 22 6612 1218
EPS -19.9 -14.9 -3.1 5.8 4.7

Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 18
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
India Equity Research | Building Materials
©
August 10, 2022
Conference Note

Century Plyboards (India) Ltd. Refer to important disclosures at the end of this report
Your success is our success

One-stop shop solutions wood panel company CMP

Rs611
MCap (Rs bn)
136
TP & Rating
NOT RATED

We hosted Mr. Nehal Shah – CSO and Head IR

Key meeting takeaways
 Management has guided for 15% volume growth and 20% value growth with 13-15% EBITDA margins for plywood, 15%+ volume and value growth with 14-16%
EBITDA margin for laminates, 20% volume and value growth with 25% EBITDA margin for MDF, and 10% volume and 20% value growth with 25% EBITDA margin for
particle board in FY23. Overall, it has guided for 20%+ value growth for FY23.
 Overall volumes remained robust in Q1 (flat QoQ vs. ~10% decline QoQ generally) despite being a seasonally weak quarter due to market share gains.
 Favorable demand supply dynamics led to robust margins in MDF and particle board.
 The company took price hike of 2% in premium plywood, 3% in Sainik, and 7% in Sainik MR. Full effect of price hikes is expected to be witnessed from Q2FY23.
 For particle board, the company is firm on its expansion plan. However, management is yet to take the decision in terms of size, which will be hopefully taken within 1-
1.5 months. It is contemplating 400CBM or 800CBM plant.
 The company is on track for capacity expansion, which is likely to drive double-digit growth across segments along with healthy margins. The biggest issue is land
availability.
 Margins are expected to improve going forward as Q1 had an impact of high ad spends in the plywood division (7% of sales) and payment to BCG in the laminates
division. Management has guided for plywood margin of 13-15% for FY23.

Financial Snapshot (Consolidated) Price Performance (%)

This report is solely produced by Emkay Global. The following
(Rs mn) FY17 FY18 FY19 FY20 FY21 1m 3m 6m 12m
person(s) are responsible for the production of the recommendation:
Net Sales 18,183 20,239 22,804 23,170 21,304 Absolute Returns 15.3 5.5 -4.3 46.5
Dharmesh Shah
EBITDA 3,120 3,311 3,016 2,797 3,237 Rel to Nifty 6.7 -1.9 -4.6 35.9 [email protected]
EBITDA Margin (%) 17.2 16.4 13.2 12.1 15.2 +91 22 6612 1255

APAT 1,904 1,633 1,502 1,470 1986 Harshal Milan Mehta

EPS (Rs) 8.6 7.4 6.8 6.6 8.9 [email protected]
+91 22 6624 2481
EPS (% chg) -14.2 -8.0 -2.1 35.1
ROE (%) 26.6 20.9 16.5 14.2 16.8
P/E (x) 71.3 83.2 90.4 92.4 68.4
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 19
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
India Equity Research | Building Materials
©
August 10, 2022
Conference Note

Stylam Industries Refer to important disclosures at the end of this report

Your success is our success

On a strong footing CMP

Rs1,126
MCap (Rs bn)
19
TP & Rating
NOT RATED

We hosted Mr. Jagdish Gupta – MD

Key meeting takeaways
 Management expects growth momentum to sustain and margins to expand as it uses low-price raw materials. Prices of key raw materials such as melamine, phenol,
and paper have softened.

 The company delivered robust performance in Q1 with revenue growth of 80% YoY/31% QoQ and EBITDA growth of 35% YoY/78% QoQ.

 Laminates volumes increased by 50% YoY, whereas realization increased 17% QoQ, leading to EBITDA margin increasing by 396bps QoQ to 15%. Laminates
realization increased 17% QoQ to Rs856/sheet in Q1FY23, driven by superior product mix and price hikes taken in the last six months. Going ahead, the company
plans to enhance the share of value-added products as well as expand the product range.

 The company has reached capacity utilization of ~80% in the laminates division. It has started modular expansion at existing facilities, which will increase capacity by
up to 40% at an investment of Rs400mn. It has, thus, put plywood expansion on hold and prioritized laminates expansion.

 The company has not witnessed any slowdown in export markets due to recession concerns. It is, thus, exploring newer markets such as South America apart from
increasing penetration in existing markets.

 Acrylic solid surface panel will have the opportunity for import substation as well as exports. The first line of acrylic solid surface is fully stabilized and the second line is
expected to be fully operational within 1-2 months.

Financial Snapshot Standalones) Price Performance (%)

This report is solely produced by Emkay Global. The following
(Rs mn) FY17 FY18 FY19 FY20 FY21 1m 3m 6m 12m
person(s) are responsible for the production of the recommendation:
Net Sales 2,944 3,391 4,606 4,622 4,759 Absolute Returns 28.2 11.0 17.6 -18.0
Dharmesh Shah
EBITDA 458 493 799 644 954 Rel to Nifty 18.7 3.2 17.2 -23.9 [email protected]
EBITDA Margin (%) 15.5 14.5 17.3 13.9 20.0 +91 22 6612 1255

APAT 197 195 390 283 552 Harshal Milan Mehta

EPS (Rs) 11.6 11.5 23.0 16.7 32.6 [email protected]
+91 22 6624 2481
EPS (% chg) -0.7 99.3 -27.5 95.5
ROE (%) 25.7 17.6 23.5 14.5 23.8
P/E (x) 97.0 97.7 49.0 67.5 34.5
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 20
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
India Equity Research | Building Materials
©
August 10, 2022
Conference Note

Greenply Industries Refer to important disclosures at the end of this report

Your success is our success

Entry into MDF to enable high growth CMP

Rs180
MCap (Rs bn)
22
TP & Rating
NOT RATED

-We hosted Mr. Manoj Tulsian – CEO and Jt. MD, Gautam Jain- AVP- Strategy and IR, Ekta Srivastava - Business Analyst
Key meeting takeaways
 Management has reiterated revenue guidance of 15% (10-12% volume growth), implying flat revenue growth for rest of FY23 due to capacity constraints. It has also
guided for EBITDA margin of 11-11.5%, although margin is likely to be soft in Q2 due to delay in cost pass-through. Price hike of ~2% became effective in June 2022.
The company is contemplating another price increase in the value segment.
 Management believes current margins in MDF (35%) are not sustainable; however, it is unlikely to go below 25% in the medium term. Sea freight rates are still higher
and, hence, MDF imports look difficult. Greenply will remain the only MDF plant in western India and 60% of the production is expected to be sold in western region.
Trial run for MDF plant is expected to commence by Q4FY23 and commercial production is likely to start by Q1FY24.
 For Gabon, order book is not a challenge; however, operations have faced external challenges since the onset of Covid. Demand outlook is robust in Europe. Gabon
has not seen timber price increase and it is expected to run at existing rate of Q1. Gabon’s operations revenue is expected to grow 25-30% YoY.
 The company launched Green Platinum in the premium segment in Q1FY23. Initial response for the product has been encouraging. The company plans to augment
the premium segment’s volumes by further introducing new premium products.
 Commercial production has started at Sandila, Lucknow. Civil construction work is going on in the Vadodara plant. The company expects some delays in machinery
imports due to logistics issues.

Financial Snapshot (Consolidated) Price Performance (%)

This report is solely produced by Emkay Global. The following
(Rs mn) FY17 FY18 FY19 FY20 FY21 1m 3m 6m 12m
person(s) are responsible for the production of the recommendation:
Net Sales 16,680 9,123 14,122 14,204 11,653 Absolute Returns 0.0 -11.5 -9.0 -4.4
Dharmesh Shah
EBITDA 2,449 588 1,440 1,052 1,143 Rel to Nifty -7.5 -17.6 -9.3 -11.3 [email protected]
EBITDA Margin (%) 14.7 6.4 10.2 7.4 9.8 +91 22 6612 1255

APAT 1,267 1,150 811 816 615 Harshal Milan Mehta

EPS (Rs) 10.3 9.4 6.6 6.6 5.0 [email protected]
+91 22 6624 2481
EPS (% chg) -9.2 -29.5 0.5 -24.6
ROE (%) 16.4 13.9 13.4 22.9 15.1
P/E (x) 17.4 19.2 27.2 27.0 35.9
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 21
 Emkay
This report is India
intended for
Equity '[email protected]'
Research useInfra
| Engineering & Capital Goods, and downloaded at 8/11/2022 10:45:05 AM
©
August 10, 2022
Conference Note

Larsen & Toubro Refer to important disclosures at the end of this report
Your success is our success

Better inflow expectation CMP

Rs 1,830
MCap (Rs bn)
2,571
TP & Rating
Rs 1,960 | BUY

We hosted Mr. P Ramakrishnan (VP-Corporate Accounts), Mr. Harish Barai (GM- Joint IR), and Ms. Shalmali Dange (Manager- IR)
Key Meeting Takeaways
 For the year FY23, the company has retained guidance of 12-15% growth for order inflow and revenue. Margin in the projects and manufacturing business portfolio is
expected to remain at around 9.5%. Given the recent correction in commodity, this looks likely.

 Order prospects for the remainder period of the year stands at Rs7.6 trillion. Up to June 30, 2022, order inflow (ex-services) being the key positive for the quarter,
stood at Rs280bn on better inflows in infrastructure, hydrocarbon, and defence segments.

 Basis the ‘Lakshya 2026’ plan launched, the chairman of the company is targeting to attain revenue of Rs 2.7 trillion by FY26 at group level. The group recorded
revenue of Rs1.56trn during FY2021-22, registering 15% yoy growth.

 L&T is currently exploring various divestment for Nabha Power/IDPL. It has already exited its hydro power plant.

 Hyderabad metro performance is expected to improve further. With the ridership at 285,000 per day in Q1FY23 vs. 55,000 per day in Q1FY22, coupled with a
confirmed government assistance of Rs. 30 billion (interest free) including a recently concluded debt refinancing, the company is optimistic towards the performance of
Hyderabad metro projects over the next two years.

Financial Snapshot (Consolidated) Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 12m
following person(s) are responsible for the production of
Revenue 13,59,790 15,65,212 17,94,956 20,11,958 21,47,874 Absolute Returns 8.4 12.8 -2.4 13.6 the recommendation:

EBITDA 1,56,251 1,82,173 2,21,503 2,50,049 2,71,120 Rel to Nifty 0.4 5.6 -3.9 5.3 Abhineet Anand
EBITDA Margin [email protected]
11.5 11.6 12.3 12.4 12.6 +91 22 6624 2466
(%)
APAT 69,014 85,744 1,09,477 1,26,426 1,37,535 Abhishek Mody
[email protected]
EPS (Rs) 49.1 61.0 77.9 90.0 97.9
+91 22 6624 2491
EPS (% chg) (22.4) 24.2 27.7 15.5 8.8
ROE (%) 9.7 10.8 12.7 13.3 13.1 Chinmay Kabra
[email protected]
P/E (x) 37.2 30.0 23.5 20.3 18.7
+91 22 6624 2453
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 22
 Emkay
This report is intended for '[email protected]'
India Equity Research |use and downloaded at 8/11/2022 10:45:05 AM
Cement
©
August 10, 2022
Conference Note

Dalmia Bharat Refer to important disclosures at the end of this report

Your success is our success

Timely project execution is key CMP

Rs1,603
MCap (Rs bn)
300
TP & Rating
Rs1,550 - Hold

We hosted Ms. Aditi Mittal – Head IR; Mr. Shobhit Saxena - Sr. Manager IR
Key meeting takeaways
 Dalmia is targeting to increase cement capacity from 37mt currently to 40/49mt by the end of FY23/24, respectively. It added 1.1mt of cement capacity and 2mt of
clinker capacity through debottlenecking in Q1FY23. Murli plant is likely to take 9-12 months to stabilize and is on track to achieve 60% utilization in FY23.
 Exit cement prices were below the average prices of Q1FY23 in the company’s key market (South and East). While prices have declined ~3% QoQ in Q1FY23. Prices
are quite promising in North/Central market and the company expects the trend to follow in South/East market. The company has witnessed higher growth in volumes
in south compared to east in Q1.
 Average fuel consumption cost increased from US$180/ton in Q4 to US$218/ton in Q1. On Kcal basis, it stood at Rs2.47 for Q1FY23 vs. Rs2.07 in Q4FY22. Spot
prices of petcoke are in the range of US$180-190/ton and benefit of the same is likely to be from Q3. Fuel cost is likely to be at US$170-180/ton in Q3FY23.
 The company incurred capex of Rs5.3bn in Q1; FY23 capex guidance stood at Rs30-35bn. Management believes entry of a new player is a positive sign and is likely
to increase attractiveness and consolidation in the sector.
 Acquisition of land is underway in the eastern region. The process is likely to complete in 1.5 years. Limestone extraction is likely to start in six months and the
company is expecting mining reserves, which can have mine life of at least 20 years.
 All plants are likely to have WHRS (except one kiln in south) capacity by the end of FY24. The company has 37MW WHRS capacity as of June 2022; while renewable
capacity is likely to increase to 171WM by the end of FY23 (vs. currently 104MW).

Financial Snapshot (Consolidated) Price Performance (%)

(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 12m This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
Revenue 1,05,220 1,12,860 1,32,118 1,49,551 1,71,201 Absolute Returns 11.8 12.3 -17.4 -17.4
the recommendation:
EBITDA 27,830 24,260 23,423 31,117 37,457 Rel to Nifty 3.5 5.2 -18.6 -23.4
EBITDA Margin (%) 26.4 21.5 17.7 20.8 21.9 Dharmesh Shah
[email protected]
APAT 8,640 7,630 7,553 13,025 17,572 +91 22 6612 1255
EPS (Rs) 46.2 40.8 40.4 69.6 93.9
EPS (% chg) 302.0 (11.7) (1.0) 72.4 34.9 Harshal Milan Mehta
[email protected]
ROE (%) 7.5 5.4 4.8 8.1 10.1 +91 22 6624 2481
P/E (x) 34.7 39.3 39.7 23.0 17.1
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 23
 Emkay
This report is intended for '[email protected]'
India use and downloaded at 8/11/2022 10:45:05 AM
Equity Research | Agri Input & Chemicals
©
August 10, 2022
Conference Note

Meghmani Organics Refer to important disclosures at the end of this report

Your success is our success

CMP MCap (Rs bn) TP & Rating

Rs122 31 NOT RATED

Key takeways –
 Meghmani Organics has commissioned two new plants in the agro division, thus doubling its capacity at Dahej. Phase 1 of the plant will be launched in the third
quarter. The company is expecting a topline of Rs600cr from this plant. Capex is around Rs310cr.

 Capital allocation criteria and focus is backward and forward integration of the new projects, resulting in better supply chain and cost-control management.
Management expects ROE of 16%+ from new projects and payback period of 4-5 years.

 Meghmani Organics is also foraying into titanium dioxide pigment with the acquisition of Kilburn Chemicals.

 Aspiring for 2025:

 Topline of the company is expected to be Rs4,500cr.

 Revenue from agrochem is expected to be Rs3,000cr.

 Revenue from the pigment division is expected at Rs1,500cr.

 EBITDA is likely to be at Rs765cr.

Financial Snapshot (Consolidated) Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY17 FY18 FY19 FY20 1m 3m 6m 12m following person(s) are responsible for the production of
Net Sales 14,196 17,996 20,879 21,912 Absolute Returns -7.3 -5.8 15.0 N/A the recommendation:

EBITDA 2,850 4,300 5,286 4,341 Rel to Nifty -14.2 -12.4 14.6 N/A Emkay Research
EBITDA Margin (%) 20.1 23.9 25.3 19.8
APAT 902 1,743 2,655 2413
EPS (Rs) 3.5 6.9 10.4 9.5
EPS (% chg) - 93.3 52.3 -9.1
ROE (%) 12.6 21.9 28.3 21.8
P/E (x) 34.5 17.8 11.7 12.9
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 24
 Emkay
This report is intended for India
'[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
Equity Research | Specialty Chemicals
©
August 10, 2022
Conference Note

Meghmani Finechem Refer to important disclosures at the end of this report

Your success is our success

Juggernaut of capex rolls on; future growth to be driven by CMP MCap (Rs bn) TP & Rating
Rs1,425 59 NOT RATED
derivatives
Key takeways –
 Commissioned its CPVC plant, with capacity of 30KTPA, on 18th July. Domestic demand stands at 160KTPA and is logging 13% CAGR, making MFL the sole CPVC
player in India. The only other domestic player that has announced to set up a CPVC plant (with 10KTPA capacity) in India is DCW.

 Company has 8% market share in Chlor-alkali in India.

 Current mix: Chlor-alkali/Derivatives is 75:25; by FY25, targets mix to be 50:50.

 Future growth will be driven by the derivatives segment.

 The ECH plant with capacity of 50KTPA was commissioned on 1st June. Domestic demand stands at 80KTPA and is expected to reach 100-120KTPA in the next 3
years. The global market for ECH is registering a CAGR of 4-5%.

 Sustainable long-term EBITDA margin will remain in the 26-30% range.

 Company has incurred Rs1.8bn capex for Chloro-Toluene chain products.

Financial Snapshot (Standalone) Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY18 FY19 FY20 FY21 FY22 1m 3m 6m 12m following person(s) are responsible for the production of
Net Sales 5,975 7,104 6,105 8,286 15,509 Absolute Returns 2.7 7.1 69.0 N/A the recommendation:

EBITDA 2,553 3,117 1,941 2,613 5,095 Rel to Nifty -5.0 -0.4 68.4 N/A Emkay Research
EBITDA Margin (%) 42.7 43.9 31.8 31.5 32.9
APAT 1,526 1,782 1,117 1,008 2528
EPS (Rs) 36.7 42.9 26.9 24.3 60.9
EPS (% chg) 129.3 16.8 -37.3 -9.7 150.7
ROE (%) 34.7 44.6 34.1 23.8 42.2
P/E (x) 38.8 33.2 53.0 58.7 23.4
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 25
 Emkay
This report is intended for '[email protected]'
India Equity Research | Consumeruse and downloaded at 8/11/2022 10:45:05 AM
Durable
©
August 10, 2022
Conference Note

Dixon Technologies (India) Ltd Refer to important disclosures at the end of this report
Your success is our success

On track to scale up CMP

Rs3,801
MCap (Rs bn)
22,819
TP & Rating
Rs3860|Hold

Key Takeaways:
 The Indian Electronics industry is expected to register 30% CAGR over FY21-26 to $280bn, with Dixon having presence in product segments constituting 60% of the
industry value. India’s market share in the global EMS industry will increase, from the current 1.8% to 8.1% by 2026. Also, the total Indian EMS industry is set to grow
from $14bn now to $81bn by FY26, implying a CAGR of 41%.

 Management focus is on revenue execution across the business segment, as the PLI Scheme has garnered considerable investment. To create customer stickiness,
the management is also enhancing offerings through product designs and solutions in both, the ODM and EMS businesses. Within the domestic electronics
manufacturing space, Dixon has been the key beneficiary of PLI, with customer wins in Mobile, IT Hardware, JV with Bharti in Telecom and JV in RAC PCBA.

 The company has completed considerable senior-level hiring from large MNC companies, to bring in experience on the R&D, product solutions, technology
advancement and product innovation fronts. Dixon’s R&D lab can be compared with the large brand’s in-house R&D capabilities.

 Management remains optimistic about both, medium- and long-term growth prospects across the business segments. Its large scale in key product segments
differentiates it from the competition; also, in the Lighting segment, it is cost-competitive with global manufacturers. The Electronic manufacturing industry has huge
export potential across product categories, as the PLI scheme has enabled EMS players to become cost competitive and benefit from the China+1 strategy being
adopted by brands.

 Dixon remains committed to benefit the most from the tailwinds in the electronics manufacturing sector, with clear focus on achieving an asset-light balance sheet,
superior return profile, working capital efficiencies and prudent capital allocation.

Financial Snapshot (Consolidated) Price Performance (%)

(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 12m This report is solely produced by Emkay Global. The
Revenue 64,482 106,971 159,901 222,652 272,151 following person(s) are responsible for the production of
Absolute Returns 5 5 (15) (10) the recommendation:
EBITDA 2,866 3,791 6,220 8,690 10,696
Rel to Nifty (3) (3) (15) (17)
EBITDA Margin (%) 4.4 3.5 3.9 3.9 3.9
Naval Seth
APAT 1,598 1,903 3,461 5,271 6,821
[email protected]
EPS (Rs) 26.9 32.1 58.3 88.8 114.9 +91 22 6624 2414
EPS (% chg) 32.6 19.1 81.9 52.3 29.4
ROE (%) 25.0 22.9 31.6 34.8 32.5
P/E (x) 141.1 118.4 65.1 42.8 33.0
EV/EBITDA (x) 78.6 60.0 36.7 26.0 20.7
P/BV (x) 30.6 24.3 17.9 12.7 9.3
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 26
 Emkay
This report is intended for '[email protected]'
India Equity Research | Consumeruse and downloaded at 8/11/2022 10:45:05 AM
Durable
©
August 10, 2022
Conference Note

KEI Industries Refer to important disclosures at the end of this report

Your success is our success

Growth outlook intact CMP

Rs1,355
MCap (Rs bn)
12682
TP & Rating
Rs1350|Buy

Key Takeaways:
 Growth is not a challenge. Management has maintained a 17% revenue CAGR guidance. The industry is growing at 12-14%. Management expects a 10-12% volume
CAGR. The target is to reach Rs100bn revenue in the next five years (2026) from existing products.

 Currently, in the cables division, volumes are similar to 2019. Real estate demand has improved in the past one year with a number of new projects, which were
absent in the past five years.

 The unorganised sector and other small industries are struggling as they do not have adequate capital. The unorganised sector is around 24% of the market share,
which will further reduce to 22%.

 Export market did not grow for the past two years due to COVID restrictions, only existing clients are giving business. The company will not expand to new markets.

 Growth is focussed with margin expansion and continued balance sheet improvement.

Financial Snapshot (Consolidated) Price Performance (%)

(Rs mn) FY20 FY21 FY22 FY23E FY24E 1m 3m 6m 12m This report is solely produced by Emkay Global. The
Revenue 48,878 41,815 57,266 66,212 77,701 following person(s) are responsible for the production of
Absolute Returns 14 20 34 93
EBITDA 4,971 4,605 5,888 7,098 9,005 the recommendation:

EBITDA Margin (%) 10.2 11.0 10.3 10.7 11.6

Rel to Nifty 6 12 33 79
APAT 2,563 2,734 3,760 4,715 6,005
Naval Seth
[email protected]
EPS (Rs) 28.6 30.4 41.8 52.5 66.8
+91 22 6624 2414
EPS (% chg) 25.0 6.3 37.5 25.4 27.4
ROE (%) 22.4 16.6 19.2 20.0 21.0
P/E (x) 48.3 45.5 33.0 26.4 20.7
EV/EBITDA (x) 25.2 27.2 21.0 17.3 13.6
P/BV (x) 8.2 7.0 5.8 4.8 4.0

Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 27
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
India Equity Research | Industrials
©
August 10, 2022
Conference Note

Adani Enterprises Refer to important disclosures at the end of this report

Your success is our success

Focus on incubating business lines CMP

Rs2,792
MCap (Rs bn)
3,183
TP & Rating
NOT RATED

We hosted Mr. D Balasubramanyam (Group IR Head) and Mr. Saurabh Shah (GM-F&A)
Key Meeting Takeaways
 Adani Enterprises Limited (AEL), the business incubation arm of the Adani Group, is venturing into a new business. The company is emphasizing on expanding into
the airports business, roads, green hydrogen, data, and digital sector, with the aim to scale these businesses and eventually bring their IPO in the market.

 The company is witnessing significant growth in its attractive incubation pipeline, comprising energy and utility. The company also announced partnership with ‘Total
Energies’ to set up a 2.5 million metric ton of green hydrogen ecosystem by FY2030. The company is focusing on bringing down the cost of production from estimated
USD2.2/kg in FY26 to USD1/kg by FY30.

 The company is expected to witness better growth opportunities with 1) passenger footfall reaching 85% of pre-covid levels, 2) the company currently owns eight
airports, of which seven are fully operational, and 3) focus on improving connectivity of tier 3 cities with tier 1 and 2 cities.

 The transaction of acquiring Macquarie Infra’s for Rs3,110cr, which is expected to be completed by September 2022, will give Adani control over four stretches of toll
roads in Andhra Pradesh and Gujarat. The company currently has 5,000 km worth of project and aims to scale it up to 12,000 km by FY26.

Financial Snapshot (Consolidated) Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY18 FY19 FY20 FY21 FY22 1m 3m 6m 12m
following person(s) are responsible for the production of
Net Sales 3,59,239 4,03,787 4,34,026 3,95,371 6,94,202 Absolute Returns 21.8 24.2 62.7 81.7 the recommendation:

EBITDA 17,591 12,730 21,546 22,462 37,132 Rel to Nifty 12.7 15.5 62.1 68.6 Abhineet Anand
[email protected]
EBITDA Margin (%) 4.9 3.2 5.0 5.7 5.3
+91 22 6624 2466
APAT 9,588 8,029 9,581 10,972 7750
Abhishek Mody
EPS (Rs) 8.4 7.0 8.4 9.6 6.8 [email protected]
EPS (% chg) -1.6 -16.3 19.3 14.5 -29.4 +91 22 6624 2491
ROE (%) 6.6 5.4 6.0 6.4 3.9 Chinmay Kabra
P/E (x) 331.9 396.4 332.2 290.1 410.7 [email protected]
+91 22 6624 2453
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 28
 Emkay
This report is intended for '[email protected]' use
India Equity Research | Packaged and downloaded at 8/11/2022 10:45:05 AM
Foods
©
August 10, 2022
Conference Note

LT Foods Refer to important disclosures at the end of this report

Your success is our success

Strong growth commentary led by expansion of existing product CMP MCap (Rs bn) TP & Rating
portfolio and strengthened distribution network Rs87 28 NOT RATED

 Key takeways –
 LT Foods saw 9% revenue growth on a three-year CAGR basis in Q1FY23 and targets to grow its revenue by 10-12% on a five-year CAGR basis, led by product
innovations, growth in HoReCa business and international business. Currently, basmati and other specialty rice contribute ~79% to the overall revenue, while organic
food and ingredient business/convenience and health business contribute ~13%/2%.

 Some of the product innovations include Ready-to-Heat food (Dawat Biryani), Brown Rice; which can be prepared within 15 minutes, which no competitor has been
able to replicate till now; Cuppa Rice and premium snack Kari Kari. HoReCa business currently contributes 10-15% to the overall business and has higher realizations
as compared to the other businesses.

 LT Foods has nine manufacturing facilities globally, including five in India, one in Europe, and one in Netherlands. The company also has three warehouses in different
parts of Europe, one packaging, and one warehousing facility in Netherlands. The company has also strengthened its distribution network with 1,300+ globally.

 LT Foods also expects to expand its EBITDA margin to 15-16%, led by higher contribution from convenience and health business, which has high-margin products and
strong growth in the organic food business. The company also expects to expand its ROCE margins to 23-24% by FY25 through the organic and inorganic route.

Financial Snapshot (Consolidated) Price Performance (%)

(Rs mn) FY17 FY18 FY19 FY20 FY21 1m 3m 6m 12m This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
Net Sales 32,448 36,137 38,904 41,351 46,444 Absolute Returns 10.9 6.0 23.9 18.9 the recommendation:
EBITDA 3,579 3,763 3,972 4,627 5,521 Rel to Nifty 2.6 -1.4 23.4 10.3
EBITDA Margin (%) 11.0 10.4 10.2 11.2 11.9 Emkay Research
APAT 1,174 1,347 1,283 1,875 2735
EPS (Rs) 3.7 4.2 4.0 5.9 8.6
EPS (% chg) 14.7 -4.7 46.1 45.9
ROE (%) 17.7 14.6 10.2 13.3 16.9
P/E (x) 23.6 20.6 21.6 14.8 10.1
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 29
 Emkay
This report is intended for '[email protected]' use
India Equity Research | Consumer and downloaded at 8/11/2022 10:45:05 AM
Goods
©
August 10, 2022
Conference Note

ADF Foods Refer to important disclosures at the end of this report

Your success is our success

Becoming aggressive in the processed foods space CMP

Rs712
MCap (Rs bn)
16
TP & Rating
NOT RATED

Key Takeaways
 ADF’s interests lie in exports of prepared ethnic-food manufacturing with 5 major brands − Ashoka, Truly India, Camel, Aeroplane, and Soul.

 The company’s current business mix is optimally balanced between processed foods and distribution, entailing revenue mix of 80:20, which is likely to endure in the
future.

 ADF has its own state-of-the-art manufacturing capabilities at Nadiad, Surat and Nashik, with total capacity of 28,000mn ton. It has plans for a large greenfield
expansion in Surat, at a total capex of Rs65cr, which could generate an asset turnover of 2.5x at peak utilization. Such capex is likely to be commissioned within 18-24
months; the sales would be supported by their past investments on the distribution front – the company has taken 2 warehouses on lease and acquired a company
(Vibrant) in USA (that operates in the Indian diaspora of New Jersey and Georgia).

 The company has recently acquired distributorship of some companies − like Patanjali for the UK and western European markets as well as a Malaysian Paratha
company (Kawan) for the US market; this will help ADF to enlarge its product basket, thereby improving its bargaining power with distributors.

 ADF is not only debt free, but also has cash of Rs100cr, some of which is likely to be used for inorganic growth.

 ADF plans to re-launch the 'Soul' brand for the large Indian processed food market through the e-commerce route. Another brand, 'Khansama', is in the planning
stage; both brands are set to be launched in the second half of FY23.

 Management is looking to double sales in 3 years and maintain its current EBITDA margins of 18%.

Financial Snapshot (Consolidated) Price Performance (%)

(Rs mn) FY18 FY19 FY20 FY21 FY22 1m 3m 6m 12m This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
Net Sales 2,009 2,314 2,852 3,698 4,212 Absolute Returns 0.6 -5.0 -13.6 -16.8 the recommendation:
EBITDA 190 289 524 683 665 Rel to Nifty -6.9 -11.6 -13.9 -22.8
EBITDA Margin (%) 9.5 12.5 18.4 18.5 15.8 Emkay Research
APAT 182 257 431 495 478
EPS (Rs) 8.3 11.7 19.6 22.5 21.8
EPS (% chg) 24.5 41.4 67.9 14.8 -3.5
ROE (%) 10.6 14.8 22.9 20.7 15.5
P/E (x) 86.1 60.9 36.3 31.6 32.7
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 30
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
India Equity Research | Insurance
©
August 10, 2022
Conference Note

Star Health Refer to important disclosures at the end of this report

Your success is our success

Profitable Growth on track CMP

Rs.696
MCap (Rs bn)
401
TP & Rating
Rs.945 | BUY

We hosted Mr. Nilesh Kambli , CFO.

Key Meeting Takeaways
 Star reported 98.2% combined ratio for Q1FY23, however management commentary remains positive on achieving the target of 63-65% claims ratio and 93-95%
combined ratio.

 Management is confident of delivering 20% retail health premium growth; while in group health, it will continue to be selective by reducing exposure in large corporates
and growing in the SME segment.

 Retail premium growth will likely be a combination of 8-9% ticket size increase (sum assured increase and pricing changes) and 10% volume growth.

 Star reported PAT of Rs2.1bn for Q1FY23, which was largely led by the Unexpired Risk Reserve decline driven by seasonality factors. Management stated that the
impact of ESOPs amounting to Rs1.85bn should concluded by November 2022. The conclusion of ESOP costs coupled with lower operating costs would further lift
profits.

 With RSM moving towards premium-based factors from the current claims-based factor, FY23 solvency should reach 200% levels, which will put the capital raise talks
to rest. Management stated that the convergence of solvency calculation on a premium-based factoring is likely to conclude by September 2022.

 Management said the company is exploring new partners to expand its distribution channel. The company recently partnered with CSC (A Government Initiative),
which will help the company to improve rural penetration. The company is targeting the mid and upper class customers.

Financial Snapshot Price Performance (%)

(Rs mn) FY21 FY22 FY23E FY24E FY25E This report is solely produced by Emkay Global. The
1m 3m 6m 1yr
GWP 93,490 1,14,635 1,33,115 1,62,464 1,96,687 following person(s) are responsible for the production of
Absolute Returns 30.2 -4.1 -10.0 N,A
Combined ratio (%) 114.8 117.9 95.8 95.0 94.1 the recommendation:
Rel to Nifty 20.5 -10.8 -10.3 N.A
U/W result -13,318 -20,616 2,705 2,665 5,302
Avinash Singh
Net profit -8,256 -10,407 7,180 9,722 13,401 [email protected]
RoE (%) -32.1 -25.6 14.3 16.5 19.3 +91 22 6612 1327
Solvency ratio (%) 223.0 167.0 199.8 212.0 209.7
Mahek Shah
EPS (Rs) -16.5 -18.7 12.5 16.8 23.2
[email protected]
P/E -42.1 -37.3 55,9 41.3 30.0 +91 22 6612 1218

Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 31
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
India Equity Research | Insurance
©
August 10, 2022
Conference Note

Max Financial Refer to important disclosures at the end of this report

Your success is our success

Growth to normalize CMP

Rs.795
MCap (Rs bn)
274
TP & Rating
Rs.1,060 | BUY

We hosted Amrit Singh, CFO and Ankur Gupta, Chief Manager – Financial Planning and Analysis
Key Meeting-Takeaways
 The Banca channel reported muted growth of 8% YoY for Q1FY23, largely on account of the impact of the Axis Bank-led open architecture. The management stated
that growth in this channel should normalise by Q3FY23, with a favourable base effect. However, management also noted that the counter share at Axis Bank is being
maintained and the company is making efforts to ensure the growth momentum in the channel picks up.

 Management expects costs to remain higher, on account of expansion on the distribution front; hence, margins could remain under pressure.

 With respect to protection, the management mentioned that margins for Q1FY23 were better than those in Q1FY22 and, given a smaller base, growth should bounce
back in Q2FY23, with normalcy catching up.

 Management stated that the company did not receive any formal communication from the regulator regarding the stake sale by Mitsui Sumitomo. However, both
shareholders − Mitsui Sumitomo and Axis − remain committed to closing the deal, as agreed.

 To counter the drop in the Axis Bank channel, several actions were taken, including increasing the workforce to 4,800, which the company expects to further increase
to 7,000 by end-FY23.

 Max Life signed up with the top 4-5 brokers. Management stated that the company took a cautious approach in picking up the brokers, the revenue from which is likely
to kick-in over Aug-Sep 2022. Max Life aims to grow its proprietary channel.

Financial Snapshot Price Performance (%)

(Rs bn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 1yr This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
APE 49.6 55.9 64.1 74.2 86.0 Absolute Returns -5.2 11.9 -7.4 -26.9 the recommendation:
VNB 12.5 15.3 16.9 20.3 24.0 Rel to Nifty -12.3 4.1 -7.8 -32.2
VNB Margin (%) 25.2 27.3 26.3 27.3 27.8 Avinash Singh
EV 118.3 141.7 169.3 202.0 240.6 [email protected]
Op. RoEV (%) 18.6 19.2 20.4 20.4 20.1 +91 22 6612 1327
EVPS (Rs) 281.2 336.8 392.6 468.4 557.8 Mahek Shah
EPS (Rs) 14.51 7.34 14.16 19.47 23.27 [email protected]
P/EV 2.8 2.4 2.0 1.7 1.4 +91 22 6612 1218
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)

Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 32
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
India Equity Research | Insurance
©
August 10, 2022
Conference Note

IPRU Life Refer to important disclosures at the end of this report

Your success is our success

Growth remains the Key CMP

Rs.570
MCap (Rs bn)
819
TP & Rating
Rs.670 | BUY

We hosted Mr. Dhiren Salian , Deputy CFO, and Mr. Dhiraj Chugha , Executive VP- Finance
Key Meeting Takeaways
 Management stated that the company focuses on maintaining a well-diversified product mix and focuses on acquisition of new partners and creation of new sources of
distribution with diversification of the distribution mix.

 Growth in ICICI Bank led distribution channel continued to decline on account of on-ground challenges on the retail protection side coupled with challenges on ULIPs,
driven by volatile markets. Growth of ICICI Bank channel would be reliant on revival in the protection business and market volatility.

 Management believes overall complexity will increase with the regulator expected to allow nine partnerships per bank from the current limit of three. However, to some
extent, it would be beneficial for public sector banks. At the most, a Banca partner would opt for 4 to 5 life insurers for distribution.

 Management said that if the regulator allows the life insurers to do health business, it would be interested to expand into the health segment as it believes that
mortality and morbidity go hand in hand. Moreover, with prior experience in the health segment, it will be easier for the company to enter into the health business.

 The protection business is driven by three factors, namely profile of the customer and process for onboarding the customer and pricing. Management stated that retail
protection had slowed down on account of tightening of the onboarding process, especially post covid, driven by the tightening of processes at the reinsurer level.
However, management believes the drop in retail protection has now stabilized.

Financial Snapshot Price Performance (%)

(Rs bn) FY21 FY22 FY23E FY24E FY25E This report is solely produced by Emkay Global. The
1m 3m 6m 1yr
APE 64.6 77.3 86.1 96.2 108.2 following person(s) are responsible for the production of
Absolute Returns 10.0 11.7 10.5 -12.5
VNB 16.2 21.6 25.3 28.9 33.0 the recommendation:
Rel to Nifty 1.8 3.9 10.1 -18.8
VNB Margin (%) 25.1 28.0 29.4 30.1 30.5
Avinash Singh
EV 291.1 316.3 357.2 406.2 462.7 [email protected]
Op. RoEV (%) 15.2 11.0 15.5 15.5 15.5 +91 22 6612 1327
EVPS (Rs.) 203 220 248 283 322
Mahek Shah
EPS (Rs.) 6.66 5.28 7.02 9.58 11.46
[email protected]
P/EV 2.8 2.6 2.3 2.0 1.8 +91 22 6612 1218
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)

Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 33
 Emkay
This report is intended for '[email protected]'
India use and downloaded at 8/11/2022 10:45:05 AM
Equity Research | Information Technology
©
August 10, 2022
Conference Note

Tech Mahindra Refer to important disclosures at the end of this report

Your success is our success

Confident to deliver guided margin trajectory CMP

Rs1,057
MCap (Rs bn)
1,028
TP & Rating
Rs 1,240 | BUY

We hosted Kaustubh Vaidya (Head FP&A & IR) and Bhairvi Selarka (Head IR) of Tech Mahindra
Key Meeting-Takeaways
 Management remains confident about sustaining revenue growth momentum in the near term, on the back of healthy demand, robust deal-intake and strong deal
pipeline. However, it remains watchful of macro uncertainties.

 The deal pipeline remains healthy across the CME and Enterprise segments. Management remains confident of sustaining deal wins in the range of USD700mn-
USD1bn on a quarterly basis.

 It believes EBITM has bottomed out in Q1 and expects 100-150bps sequential margin improvement in every quarter for the next three quarters, which would lead to an
exit quarter margin of ~14%.

 Despite impact of salary hike (-100bps) in Q2, management expects expansion in EBITM on sequential basis, buoyed by benefits accruing from higher utilization,
pricing, and lower large-deal transition & visa costs.

 The company indicated that it plans to leverage the 8-10% gap in its offshoring revenues versus the peer-set, to improve margins. It also listed pricing, increased
utilization, pyramid rationalization, and subcontracting cost optimization as other levers to drive margin improvement.

 Management expects the OCF/EBITDA ratio to be in the 90-110% range in coming quarters.

 Management indicated it will be extremely selective about M&A, and that focus is now on integration & driving synergies in the short term, with its acquired companies.

Financial Snapshot (Consolidated) Price Performance (%) This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 1yr the recommendation:
Revenue 3,78,551 4,46,460 5,26,429 5,85,169 6,52,009 Absolute Returns 4.4 -13.7 -27.0 -18,2
EBITDA 68,471 80,200 85,271 98,968 1,11,710 Rel to Nifty -3.4 -19,7 -27.3 -24.1 Dipesh Mehta
[email protected]
EBITDA Margin (%) 18.1 18.0 16.2 16.9 17.1 +91 22 6612 1253
APAT 44,281 55,660 52,395 61,602 70,637 Ayush Bansal
EPS (Rs) 50.7 63.2 59.5 69.9 80.2 [email protected]
EPS (% chg) 9.6 24.8 (5.9) 17.6 14.7 +91 22 6612 1344

ROE (%) 19.0 21.5 19.0 21.0 22.7 Ruchita Agarwal

[email protected]
P/E (x) 20.9 16.7 17.8 15.1 13.2 +91 22 6624 2450
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 34
 Emkay
This report is intended for '[email protected]'
India use and downloaded at 8/11/2022 10:45:05 AM
Equity Research | Information Technology
©
August 10, 2022
Conference Note

Happiest Minds Technologies Refer to important disclosures at the end of this report
Your success is our success

Targeting US$1bn revenue by 2031 CMP

Rs969
MCap (Rs bn)
142
TP & Rating
NOT RATED

We hosted Venkatraman Narayanan, MD & CFO and Sunil Gujjar, Head IR – Happiest Minds.
Key Takeaways:
 Based on robust growth and continued demand for its digital services, the company expects 25% revenue growth in FY23 and targets CAGR of 25% over the next five
years. It has guided to EBITDA margin range of 22-24% in the medium-to-long term.

 The company shared its 10-year vision of becoming a billion-dollar company by 2031, and plans to achieve this feat via a mix of organic and inorganic growth. The
company is actively looking at potential targets to close the capability gap.

 Company remains confident of global demand for technology, in spite of the gloomy macroeconomic situation in various countries, geopolitical conflicts, and supply-
chain constraints. It highlighted how, as per its past experience, technology-spends remain resilient even during an economic slowdown, as they contribute to higher
market shares, new business segments, cost efficiency and improvement in productivity.

 TTM attrition has inched up to 24.4% in Q1FY23 compared with 22.7% in Q4FY22, and management indicated that they expect attrition to trend downwards from the
second half of FY23. The company intends to operate on a hybrid model, which strikes a balance between work from home and office.

Financial Snapshot Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY19 FY20 FY21 FY22 1m 3m 6m 12m following person(s) are responsible for the production of
Revenue 5,904 6,982 7,734 10,936 Absolute Returns 16.8 -3.4 -11.2 -32.0 the recommendation:

EBITDA 537 1,019 2,153 2,887 Rel to Nifty 8.2 -10.2 -11.5 -36.9
Emkay Research
EBITDA Margin (%) 9.2 14.6 27.8 26.4
APAT 268 827 1,625 1,856
EPS (Rs) 4.8 16.3 11.5 12.7
EPS (% chg) 339.6 -29.5 10.4
ROE (%) 13.6 34.4 39.1 29.9
P/E (x) 201.9 59.5 84.3 76.2
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 35
 Emkay
This report is intended for '[email protected]'
India use and downloaded at 8/11/2022 10:45:05 AM
Equity Research | Information Technology
©
August 10, 2022
Conference Note

Infosys Refer to important disclosures at the end of this report

Your success is our success

Healthy deal pipeline offers good revenue visibility CMP

Rs1,619
MCap (Rs bn)
6,814
TP & Rating
Rs1,640 | BUY

We hosted Subhra Das, Principal - Investor Relations, Infosys

Key Meeting-Takeaways
 The company continues to gain market share, driven by its Cobalt cloud capabilities and differentiated digital value proposition. It is confident
about achieving its FY23 revenue guidance of 14-16%, implying a 1.4% to 2.6% CQGR over Q2-Q4.
 On account of the inflationary cost environment, Infosys expects FY23 EBITM to be at the lower end of the guided range of 21-23%.
 Deal pipeline consists of growth opportunities led by cloud & digital transformation and cost takeout opportunities driven by automation.
Infosys’ deal pipeline is robust, with its large deal pipeline being bigger than the past 3-6 months’.
 The company indicated that the demand environment has been healthy so far, with weakness seen in select pockets like mortgages and parts
of Retail. Management remains watchful of emerging macro situations and their impact on clients’ budgets. The company continues to invest
in cloud and digital capabilities, as it intends to capture the significant demand opportunities it is currently witnessing.
 The company plans to hire ~50,000 freshers in FY23.

This report is solely produced by Emkay Global. The

Financial Snapshot (Consolidated) Price Performance (%)
following person(s) are responsible for the production of
(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 12m the recommendation:

Revenue 10,04,730 12,16,410 14,31,834 16,29,275 18,31,678 Absolute Returns 5.6 3.0 -9.6 -4.7
Dipesh Mehta
EBITDA 2,78,900 3,14,920 3,43,524 4,08,990 4,67,052 Rel to Nifty -2.3 -4.2 -9.9 -11.5 [email protected]
EBITDA Margin (%) 27.8 25.9 24.0 25.1 25.5 +91 22 6612 1253
APAT 1,93,510 2,21,110 2,39,350 2,89,336 3,32,035 Ayush Bansal
EPS (Rs) 45.4 52.6 56.9 68.8 78.9 [email protected]
EPS (% chg) 16.2 15.8 8.2 20.9 14.8 +91 22 6612 1344
ROE (%) 27.1 29.0 29.7 31.7 31.9 Ruchita Agarwal
P/E (x) 35.7 30.8 28.5 23.5 20.5 [email protected]
+91 22 6624 2450
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 36
 Emkay
This report is intended for '[email protected]'
India use and downloaded at 8/11/2022 10:45:05 AM
Equity Research | Information Technology
©
August 10, 2022
Conference Note

Wipro Refer to important disclosures at the end of this report

Your success is our success

Margins bottom out in Q1; expects gradual improvement CMP MCap (Rs bn) TP & Rating
Rs436 2,390 Rs490 | BUY

We hosted Abhishek Jain, Head, Investor Relations – Wipro

Key Meeting-Takeaways
 Wipro has guided for Q2FY23 growth range of 3-5% QoQ CC (11.613.8% YoY CC) and expects double-digit growth in FY23, taking into account the strong, broad-
based demand environment as well as the robust deal intake and pipeline.

 Management indicated that EBITM has bottomed out in Q1 and is likely to gradually improve. However, it indicated that margin will remain lower than the long-term
margin target for a few quarters, as it makes conscious strategic investments. While the company will leverage efficiencies in Q2, it will see further investments, as it
promotes people and gives salary hikes.

 The company is rotating its portfolio, from legacy portfolio areas to high-growth focus areas. High-growth services like cloud, engineering and cyber security contribute
50% to bookings and are expected to further accelerate, going ahead. Order booking in cloud grew 35% YoY in Q1, while almost doubling in engineering.

 The company on-boarded 10,000 freshers in Q1 and plans to double fresher hiring in FY23 vs. FY22 (added ~19,000 freshers in FY22).

 Despite the macro uncertainties, management suggested that order booking, client conversations and pipeline remain strong and that there is no slowdown or pull-
back in spending. Overall, demand for IT services remains robust as well.

 The iCORE business line reported flat sequential growth, as the seasonal decline in the HPS business led to weakness in digital operations growth.

Financial Snapshot (Consolidated) Price Performance (%) This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 1yr the recommendation:
Revenue 619,430 790,934 894,181 1,008,320 1,122,321 Absolute Returns 2.4 -10.2 -25.2 -29
EBITDA 150,790 169,018 174,787 208,778 230,368 Rel to Nifty -5.2 -16.4 -25.5 -34.1 Dipesh Mehta
[email protected]
EBITDA Margin (%) 24.3 21.4 19.5 20.7 20.5 +91 22 6612 1253
APAT 107,946 122,191 118,415 143,417 161,234 Ayush Bansal
EPS (Rs) 19.7 22.3 21.6 26.2 29.4 [email protected]
EPS (% chg) 15.8 13.2 (3.1) 21.1 12.4 +91 22 6612 1344

ROE (%) 19.4 20.2 17.2 19.1 19.5 Ruchita Agarwal

[email protected]
P/E (x) 22.1 19.5 20.2 16.7 14.8 +91 22 6624 2450
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 37
 Emkay
This report is intended for '[email protected]'
India use and downloaded at 8/11/2022 10:45:05 AM
Equity Research | Information Technology
©
August 10, 2022
Conference Note

Birlasoft Refer to important disclosures at the end of this report

Your success is our success

Confident on sustaining growth momentum CMP

Rs344
MCap (Rs bn)
96
TP & Rating
Rs400 | BUY

We hosted Dharmender Kapoor, CEO and Chandrasekar Thyagarajan, CFO − Birlasoft

Key Meeting-Takeaways
 Management remains confident of sustaining revenue growth momentum throughout FY23, because of healthy demand, steady deal intake, and robust deals. It
expects FY23 revenue growth to be closer to the FY22 level.

 Management indicated that revenue normalization in Lifesciences is largely behind, and growth is likely to resume going ahead. Management expects ~USD0.5mn
incremental headwinds in Q2FY23.

 It targets delivering EBITDAM of over 15% in FY23. Revenue growth-led productivity, offshore shift, and pricing would support margins and negate headwinds from
wage hikes, backfilling costs, investments in digital capabilities, and micro verticals domain capabilities.

 Although attrition remains elevated currently, management expects it to start moderating in coming quarters. LTM attrition (adjusted for <6-month exits) stood at 27.9%
in Q1FY23 versus 29.4% in Q4FY22.

 As a part of its USD1bn revenue goal, the company is actively looking at M&As, preferably with scaled domain expertise/services capabilities with revenue size of
~USD150mn and total cash outgo of ~USD300-350mn.

 The company added 280 freshers in Q1FY23 and plans to add 500 more in Q2FY23.

Financial Snapshot (Consolidated) Price Performance (%) This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 1yr the recommendation:
Revenue 35,557 41,304 48,203 56,028 64,688 Absolute Returns -2.2 -10.7 -27.4 -18.2
EBITDA 5,292 6,401 7,227 8,709 10,055 Rel to Nifty -9.5 -17.0 -27.7 -24.1 Dipesh Mehta
[email protected]
EBITDA Margin (%) 14.9 15.5 15.0 15.5 15.5 +91 22 6612 1253
APAT 3,209 4,637 4,943 5,984 6,963 Ayush Bansal
EPS (Rs) 11.3 16.3 17.9 21.7 25.2 [email protected]
EPS (% chg) 40.6 44.8 9.6 21.1 16.4 +91 22 6612 1344

ROE (%) 15.8 19.5 19.7 22.6 22.5 Ruchita Agarwal

[email protected]
P/E (x) 30.5 21.0 19.2 15.9 13.6 +91 22 6624 2450
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 38
 Emkay
This report is intended for '[email protected]'
India use and downloaded at 8/11/2022 10:45:05 AM
Equity Research | Information Technology
©
August 10, 2022
Conference Note

TCS Refer to important disclosures at the end of this report

Your success is our success

Strong execution continues CMP

Rs3,374
MCap (Rs bn)
12,347
TP & Rating
Rs 3,200 | HOLD

We hosted Kedar Shirali, Vice President and Global Head - IR, TCS
Key Meeting-Takeaways
 The overall demand outlook remains healthy for the near term, with high visibility for project funding, greater cloud adoption and steady momentum in transformation
and optimization projects. Q1 saw broad-based growth across all services, led by Cloud, Consulting & Service Integration, Cognitive Business Operations and
Enterprise Application Services.

 TCS is seeing three distinct trends in operations transformation opportunities: 1) Clients are looking to leverage next-generation technologies to create a leaner, agile,
resilient and efficient operation and intend to plow back the savings into business transformation initiatives; 2) Growing incidents of multi-service integrated deals by
bringing in multiple elements of the operation stack − clients are able to not only drive greater accountability, but also take up transformation programs that are more
holistic in nature (six multi-service integrated deals in Q1); and 3) growing vendor consolidation opportunities – clients prefer to bring down the number of service
providers they work with to a few select partners who possess the right innovation capabilities and can scale up.

 While there are increasing conversations with CXOs about macro uncertainties, there has been no budget reprioritization in tech spends or any indication of demand
moderation. TCS continues to see a select uptick in pricing – COLA push-through; better rates in new deals.

 The company expects the attrition rate to start moderating in the second half of FY23. It is on track to add ~40,000 fresh graduates in FY23. Q1 is historically a soft
quarter for fresher hiring, and bulk of fresher additions usually happen in Q2 & Q3.

Financial Snapshot (Consolidated) Price Performance (%) This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 1yr the recommendation:
Revenue 16,41,770 19,17,540 21,91,970 24,80,271 27,88,887 Absolute Returns 2.8 -2.4 -10.9 0.7
EBITDA 4,53,280 5,30,570 5,88,173 6,77,330 7,61,680 Rel to Nifty -4.8 -9.2 -11.2 -6.6 Dipesh Mehta
[email protected]
EBITDA Margin (%) 27.6 27.7 26.8 27.3 27.3 +91 22 6612 1253
APAT 3,24,300 3,83,270 4,25,187 4,96,277 5,62,524 Ayush Bansal
[email protected]
EPS (Rs) 87.7 104.7 116.2 135.6 153.7 +91 22 6612 1344
EPS (% chg) 1.7 19.5 10.9 16.7 13.3
Ruchita Agarwal
ROE (%) 37.1 42.6 42.7 41.4 38.7 [email protected]
P/E (x) 38.5 32.2 29.0 24.9 21.9 +91 22 6624 2450

Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 39
 Emkay
This report is intended for '[email protected]' use
India Equity Research and downloaded at 8/11/2022 10:45:05 AM
| Ports
©
August 10, 2022
Conference Note

Adani Ports & Special Economic Zone Refer to important disclosures at the end of this report
Your success is our success

Important pillar in connectivity CMP

Rs802
MCap (Rs bn)
1,693
TP & Rating
NOT RATED

We hosted Mr. Subrat Tripathy (CEO Ports) and Mr. Chanranjit Singh (Head ESG and IR)
Key Meeting Takeaways
 As a part of the strategy, the company was looking for developed assets outside India as a result of which it entered into a consortium to acquire Haifa Ports, the
largest port of Israel. It handled 56% of Israel’s cargo volume i.e., 33 million metric ton in 2021.

 The company aims to evolve as India’s largest integrated transport utility company and the world’s largest private port company by 2030. APSEZ pioneered the
concept of Science-Based Targets Initiative (SBTi) in India, the third port company in the world to do so. Its aim is to achieve carbon neutrality by 2025, validating its
commitment to emission reduction targets to control global warming at 1.5°C and become carbon-positive by 2030.

 The company announced a capex plan of Rs23,000cr, which focuses on capex expansion in ports, logistics, marine business, tug business, and towage business.
Last year, the company started a new business, which is warehousing, and almost 25% of the capex plans go towards the new business.

 APSEZ continued to outperform the market during the year under review. It continued to focus on achieving east coast versus west coast parity. Cargo volumes on the
eastern ports grew by 84% and those on the west grew by 6%, improving the cargo ratio between the west coast and east coast to 62:38 (from 74:26 earlier).

Financial Snapshot (Consolidated) Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY18 FY19 FY20 FY21 FY22 1m 3m 6m 12m
following person(s) are responsible for the production of
Net Sales 1,13,230 1,09,254 1,18,731 1,25,496 1,59,340 Absolute Returns 12.0 -1.2 11.7 12.8 the recommendation:

EBITDA 69,902 65,226 58,760 79,692 84,737 Rel to Nifty 3.7 -8.1 11.3 4.6 Abhineet Anand
[email protected]
EBITDA Margin (%) 61.7 59.7 49.5 63.5 53.2
+91 22 6624 2466
APAT 37,641 40,451 38,224 49,971 50699
Abhishek Mody
EPS (Rs) 17.8 19.1 18.1 23.7 24.0 [email protected]
EPS (% chg) -3.1 7.5 -5.5 30.7 1.5 +91 22 6624 2491
ROE (%) 19.6 17.9 15.3 17.9 14.8 Chinmay Kabra
P/E (x) 45.0 41.9 44.3 33.9 33.4 [email protected]
+91 22 6624 2453
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 40
 Emkay
This report is intended for '[email protected]' use
India Equity Research | Metals and and downloaded at 8/11/2022 10:45:05 AM
Mining
©
August 10, 2022
Conference Note

Jindal Stainless Refer to important disclosures at the end of this report

Your success is our success

Merged entity to emerge stronger CMP

120
MCap (Rs bn)
63
TP & Rating
NOT RATED

Key Meeting Takeaways

 Management expects the industry to clock an overall CAGR of 9-10% over the next few years. Considerable usage is being seen on the infrastructure front due to
substitution.

 Demand has been good from the organized sector, which includes railways, auto, infra and process industries. Due to volatility in raw-material prices, the management
expects de-stocking in H1FY23, but demand to turn benign H2FY23 onwards.

 JSL's focus is on the 400 series products, which are seeing substantial demand in areas like autos, railways and infrastructure.

 JSL is catering to the US customers without cancellation of orders, despite export duty. Hence, US demand remains strong.

 JSL is undergoing capacity expansion at the Orissa plant and as well as in Jindal Stainless Hissar. All in all, JSL will have combined capacity of 2.9mn ton post
completion of the planned expansion.

 The management expects the entire transaction to be completed by FY23. The combined entity is expected to log total debt of ~Rs6,000cr.

 In FY24, the management largely expects EBITDA of Rs4,500cr, at EBITDA/ton of ~Rs18,000.

Financial Snapshot (Consolidated) Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY17 FY18 FY19 FY20 FY21 1m 3m 6m 12m following person(s) are responsible for the production of
Net Sales 92,787 1,16,377 1,35,573 1,29,509 1,21,885 Absolute Returns 16.3 -27.8 -43.1 -26.5 the recommendation:

EBITDA 11,584 13,052 11,143 10,895 14,126 Rel to Nifty 7.7 -32.8 -43.3 -31.8 Emkay Research
EBITDA Margin (%) 12.5 11.2 8.2 8.4 11.6
APAT 632 3,419 1,422 689 3567
EPS (Rs) 1.2 6.5 2.7 1.3 6.8
EPS (% chg) 441.4 -58.4 -51.6 418.0
ROE (%) 3.6 16.4 5.8 2.6 12.0
P/E (x) 100.0 18.5 44.4 91.7 17.7
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 41
 Emkay
This report is intended for '[email protected]' use
India Equity Research | Diversified and downloaded at 8/11/2022 10:45:05 AM
Metals
©
August 10, 2022
Conference Note

Vedanta Refer to important disclosures at the end of this report

Your success is our success

On Hedging and LME Pricing CMP

Rs257
MCap (Rs bn)
954
TP & Rating
NOT RATED

Key Meeting Takeaways

 They hedged according to LME pricing across all metals and commodities.

 Volumes hedged for Aluminium were 20%; zinc were 34%; oil and gas were 33% volume.

 The company has been getting good realised gains on hedging commodities.

On Costs and Discounts

 Cost of production is slightly higher than LME aluminium price.

 Costs are high in the quarter due to high power and alumina costs.

 It gives discounts of 2-3 % more to some dealers on commercial basis.

Divestment

 On Hindustan Zinc, Divestment Vedanta cannot acquire more than 5% in any year. If the government requests the company to participate in the acquisition beyond the
legal limit, the company will consider the same.

 On Balco divestments, there are no plans on Balco’s stake acquisition from the government nor there is any plan for divestment by the government.

 On BPCL: The government is re-thinking on the same. The company will look at it at the appropriate time.

Financial Snapshot (Consolidated) Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY18 FY19 FY20 FY21 FY22 1m 3m 6m 12m following person(s) are responsible for the production of
Net Sales 9,18,660 9,20,480 8,44,470 8,80,210 13,27,320 Absolute Returns 14.6 -28.8 -30.5 -18.3 the recommendation:

EBITDA 2,06,700 2,31,030 33,010 2,66,400 4,40,560 Rel to Nifty 6.1 -33.7 -30.7 -24.2 Emkay Research
EBITDA Margin (%) 22.5 25.1 3.9 30.3 33.2
APAT 85,517 68,848 1,25,660 1,21,286 192623
EPS (Rs) 23.0 18.5 33.8 32.6 51.8
EPS (% chg) 92.5 -19.5 82.5 -3.5 58.8
ROE (%) 13.8 11.0 21.5 20.7 30.2
P/E (x) 11.2 13.9 7.6 7.9 5.0
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 42
 Emkay
This report is intended for '[email protected]' use
India Equity Research and downloaded at 8/11/2022 10:45:05 AM
| NBFC
©
August 10, 2022
Conference Note

HDFC Limited Refer to important disclosures at the end of this report

Your success is our success

Ideal play for Indian housing demand CMP

Rs. 2390
MCap (Rs bn)
4,346
TP & Rating
NOT RATED

We hosted Mr. Conrad D’Souza (Member of Executive Management and Chief Investor Relations Officer)
Meeting takeaways
 There is a good pipeline in construction finance and LRD loans. Growth in the non-individual loan book is expected to accelerate over the next few quarters, with
double-digit growth for FY23 being very much on the cards.

 Credit costs are expected to normalize over the coming quarters and reach pre-Covid levels.

 HDFC Limited has received the RBI’s approval for merger and is now awaiting approval from CCI.

 NII growth is expected to improve over the coming quarters and, hence, NIM shall improve as well.

 Once the merger is complete, a very small amount of HDFC Ltd. book will not qualify for HDFC bank book. For example, loan against shares would not qualify.
However, these are very small amounts.

This report is solely produced by Emkay Global. The

following person(s) are responsible for the production of
Financial Snapshot (Standalone) Price Performance (%) the recommendation:

(Rs mn) FY18 FY19 FY20 FY21 FY22 1m 3m 6m 12m Manjith Nair
Net income 172,095 155,403 277,620 195,611 212,510 Absolute Returns 6.9 11.3 -0.9 -8.9 [email protected]
109,593 96,325 177,697 120,273 137,422 Rel to Nifty -1.1 3.5 -1.2 -15.5 +91 22 6612 1358
Net profit
EPS (Rs) 67.4 56.2 102.1 67.2 75.3 Rhave Shah
ABV (Rs) 381 451 495 608 659 [email protected]
+91 22 6612 1284
RoA (%) 3.0 2.2 3.6 2.2 2.3
RoE (%) 21.7 13.9 21.7 12.3 12.0 Nemin Doshi
PE (x) 35.5 42.5 23.4 35.6 31.7 [email protected]
+91 22 6612 1219
P/BV 6.3 5.3 4.8 3.9 3.6
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 43
 Emkay
This report is intended for '[email protected]' use
India Equity Research and downloaded at 8/11/2022 10:45:05 AM
| NBFC
©
August 10, 2022
Conference Note

PNB Housing Finance Ltd Refer to important disclosures at the end of this report
Your success is our success

Capital raise to aid business transformation CMP

Rs. 348
MCap (Rs bn)
59
TP & Rating
NOT RATED

We hosted Ms. Deepika Gupta ( Head – Investor Relations)

 The residential sector is witnessing increase in demand and PNB Housing will leverage this opportunity by maintaining focus on retail lending, expanding its affordable
home loan offering, and improving the portfolio’s credit quality.

 On the affordable housing front, the company expanded its footprint during Q1FY23 by opening 10 new locations, thus bringing the total to 34.

 On March 9, 2022, the Board approved capital raise of Rs25bn through a rights issue. Subsequently, PNB received RBI approval for capital infusion of Rs5bn in PNB
Housing, by way of the rights issue. Post SEBI approval for the said issue, the company will be able offer corporate loans, LAP, etc.

 The corporate book is expected to come down by ~Rs10bn in FY23, from the current levels of ~Rs60bn. The company targets a high single-digit retail AUM growth for
FY23 and is now highly focused on retail loans.

Financial Snapshot (Standalone) Price Performance (%)

This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
(Rs mn) FY18 FY19 FY20 FY21 FY22 1m 3m 6m 12m the recommendation:
Net income 19,521 23,181 26,106 24,836 20,803 Absolute Returns 4.1 0.1 -17.2 -50.6
-3.7 -6.9 -17.5 -54.2 Manjith Nair
Net profit 8,421 10,814 6,823 9,252 8,219 Rel to Nifty
[email protected]
EPS (Rs) 50.6 64.6 40.6 55.0 49.0 +91 22 6612 1358
ABV (Rs) 394 444 473 527 581
Rhave Shah
RoA (%) 1.6 1.5 0.8 1.2 1.2
[email protected]
RoE (%) 13.9 15.4 8.9 11.0 8.8 +91 22 6612 1284
PE (x) 6.9 5.4 8.6 6.3 7.1
Nemin Doshi
P/BV 0.9 0.8 0.7 0.7 0.6
[email protected]
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022) +91 22 6612 1219
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 44
 Emkay
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India Equity Research | Oil and downloaded at 8/11/2022 10:45:05 AM
& Gas
©
August 10, 2022
Conference Note

GAIL Refer to important disclosures at the end of this report

Your success is our success

Facing the Gazprom challenge CMP

Rs133
MCap (Rs bn)
584
TP & Rating
Rs180 | BUY

Key takeaways were:

 Gazprom supplies 2.5mmtpa or 8.5mmscmd of RLNG of the 14mmtpa of RLNG volumes for GAIL. Gazprom supply-disruptions started from late-May 2022 and, till
date, shortfall cargoes stand at eight. One cargo still came in June.

 The German entity of Gazprom was affected and hence unable to supply, declaring force majeure. The Gazprom situation is uncertain, as of now. GAIL is honoring its
own contracts with customers.

 Steps taken to mitigate the Gazprom shortfall include: 1) running at minimum supply or pay levels, 2) seeking arbitrage cargoes as ships are available with GAIL, and
3) swap US volumes in future.

 GAIL has also cut Pata (petchem plant) utilization to 50% currently. Profitability would be somewhat hit, but GAIL is taking steps to skirt this. The cut in utilization has
led to 5-6mmscmd decline in marketing and 7-7.5mmscmd decline in transmission volumes currently vs. Q1 average.

 GAIL has been scouting for more gas in the international market and looking at term LNG. Capex guidance for FY23 stood at Rs75bn.
 Of the new fertilizer plants, Gorakhpur has been commissioned, while Sindri and Barauni are in the pre-commissioning phase, with commencement expected by
September 2022, by when technical snags would be rectified. APM gas is part of internal consumption volumes. Hence, increased prices would affect GAIL’s margins.

Financial Snapshot (Standalone) Price Performance (%)

(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 12m This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
Revenue 5,67,302 9,16,265 13,71,848 13,50,099 12,58,186 Absolute Returns
the recommendation:
PBT 63,858 1,35,903 1,12,297 1,05,027 1,09,463 Rel to Nifty
PBT Margin (%) 11 15 8 8 9 Sabri Hazarika
[email protected]
APAT 48,902 1,03,640 83,998 78,560 81,879 +91 22 6612 1282
EPS (Rs) 11.0 23.3 19.2 17.9 18.7
EPS (% chg) -26.1 111.9 -19.0 -6.5 4.2 Harsh Maru
[email protected]
ROE (%) 10.5 18.6 14.2 12.4 12.1 +91 22 6612 1336
P/E (x) 12.1 5.7 7.0 7.4 7.1
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 45
 Emkay
This report is intended for '[email protected]' use
India Equity Research | Oil and downloaded at 8/11/2022 10:45:05 AM
& Gas
©
August 10, 2022
Conference Note

Petronet LNG Refer to important disclosures at the end of this report

Your success is our success

Navigating the high gas-price hurdle CMP

Rs211
MCap (Rs bn)
316
TP & Rating
Rs260 | BUY

Key takeaways were:

 Current capacity utilization at Dahej is at 87% and H1 is seasonally better, as the Dabhol terminal goes offline. PLNG expects full-year utilization to sustain around the
current levels for Dahej. Negotiations for the Qatargas contract extension are under way and PLNG is confident about receiving extension beyond 2028.
 The East coast FSRU would be developed post DFR and Board approval for this Rs17bn project. Negotiations with port authorities are near-conclusion. Regas
capacity of 3-4mmtpa is expected, with 30-40% of volumes being tied up and required to achieve ‘breakeven’. Opex is likely to be high due to time charter charges of
USD70-80k per day. Connectivity is likely to be with the JBHDPL pipeline, which likely has tariffs similar to those at Kochi.
 As spot prices are elevated, term suppliers are demanding high crude slopes. Hence, it is not the right time to enter contracts (the hurdle rate between oil and gas is
18%, although recent deals have actually happened at such levels). PLNG is looking at a term contract of 0.75-1mmtpa with Qatargas or other parties, for captive use
as well as sale.
 Kochi utilization is low due to high LNG prices. With the completion of pending 250km of the Coimbatore-Bangalore stretch of the Kochi-Bangalore pipeline, gas
connectivity to the grid will be developed, leading to swapping of volumes and better utilization rates. GAIL’s CMD has, however, assured project completion within a
year.
 Feasibility studies are under way and DFR is being prepared for the PDH PPU project, with a minimum IRR threshold of 16%. The project capacity is expected at
750ktpa, with production of propylene and polypropylene through import of propane from USA and done via the third jetty. It also plans to set up ethane (LoI from GAIL
and OPAL) and propane tanks.
 In CBG, PLNG is facing land-acquisition issues in Haryana. Four LNG stations are likely to be operational in the next six months, in partnership with IOCL. The
company typically adds 8-10 stations annually, with unit capex of Rs80mn each, albeit based on feedback from the first few stations.

Financial Snapshot (Standalone) Price Performance (%)

(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 12m This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
Revenue 2,60,229 4,31,686 5,26,369 5,15,997 5,41,965 Absolute Returns
the recommendation:
PBT 39,677 44,738 36,840 41,336 43,598 Rel to Nifty
PBT Margin (%) 15 10 7 8 8 Sabri Hazarika
[email protected]
APAT 29,494 33,524 27,556 30,919 32,611 +91 22 6612 1282
EPS (Rs) 19.7 22.3 18.4 20.6 21.7
EPS (% chg) 14.0 13.7 -17.8 12.2 5.5 Harsh Maru
[email protected]
ROE (%) 25.3 25.0 18.8 19.1 18.3 +91 22 6612 1336
P/E (x) 10.7 9.4 11.5 10.2 9.7
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 46
 Emkay
This report is intended for '[email protected]'
India Equity Researchuse and downloaded at 8/11/2022 10:45:05 AM
| Others
©
August 10, 2022
Conference Note

VIP Industries Refer to important disclosures at the end of this report

Your success is our success

Encouraging growth commentary, led by focus on handbags, CMP MCap (Rs bn) TP & Rating
exports, and value segment Rs599 85 NOT RATED

Key takeaways:
 VIP is targeting ~15% topline growth vs. FY20 (pre-covid) and 50%+ growth vs. FY22 in this year. Growth expectations are based on normalization of operations,
assortment expansion in ladies hand bags (LHB)/value segments (Aristocrat), focus on exports (white-labelling), and B2B sales.

 VIP lost market share, led by lower focus on the value segment, but it is increasing its pace of new innovations in the space under Aristocrat brand. VIP also has
strong plans to expand presence in the LHB space through assortment/distribution expansion under the brand Caprese. Expansion will be asset-light and through
FOFO stores and the modern trade channel

 VIP is also investing in building its leadership team and expanding its capacity through brownfield expansion. Capacity expansion within the same plant shall lead to
continued improvement in its asset turns. VIP’s focus on exports is based on increasing preference for large global retailers on China +1 sourcing. Supply-chain
challenges in the value format shall also lead to greater adoption on its value brand Aristocrat.

 Q1 performance was impacted due to loss of share in the bag packs category, as VIP could not launch the desired number of designs due to delay in India outsourcing
by 30 days. VIP is actively working to avoid such challenges going ahead. The company expects gross margins to sustain at 55%, led by price hikes, structural cost
savings, and normalization of commodity costs. VIP is targeting EBITDA margin of 18-20%.

Financial Snapshot (Consolidated) Price Performance (%)

This report is solely produced by Emkay Global. The following
(Rs mn) FY18 FY19 FY20 FY21 FY22 1m 3m 6m 12m
person(s) are responsible for the production of the recommendation:
Net Sales 14,096 17,847 17,144 6,186 12,895 Absolute Returns -5.9 -6.9 -9.2 48.5
Rel to Nifty -12.9 -13.4 -9.6 37.7 Emkay Research
EBITDA 1,955 2,271 2,480 -642 1,461
EBITDA Margin (%) 13.9 12.7 14.5 -10.4 11.3
APAT 1,268 1,452 1,470 -1,078 662
EPS (Rs) 9.0 10.3 10.4 4.7
EPS (% chg) 48.7 14.5 1.2 - -
ROE (%) 28.3 27.1 24.7 - 12.3
P/E (x) 66.8 58.4 57.7 - 128.0
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 47
 Emkay
This report is intended for '[email protected]'
India Equity Researchuse and downloaded at 8/11/2022 10:45:05 AM
| Others
©
August 10, 2022
Conference Note

CMS Info Systems Refer to important disclosures at the end of this report
Your success is our success

Leading player in a consolidating market CMP

Rs262
MCap (Rs bn)
40
TP & Rating
NOT RATED

We hosted Anush Raghavan (President − Cash Management Business), Puneet Kokru (Sr. Director) and Sumeet Bhansali (Senior
Manager – Business Analytics).
Key Meeting Takeaways

 The retail cash management segment is expected to see growth, especially in consumer-facing discretionary retail such as aviation, railways, large retail stores,
apparel, jewelry and footwear.

 IRR’s target for post-tax brown label ATMs is of high-teens. In its current estate of 5,000 brown label ATMs, almost 65-70% is from SBI.

 Company guides towards an ambitious revenue goal of ~18-19% CAGR and should achieve the targeted ~Rs25bn by FY25.

 First Demonetization, then GST followed by COVID, and now the higher interest-rate regime has led to strong consolidation in the industry; hence, the share-shift to
stronger, better-quality players.

 Capex of ~Rs2.3bn is planned for FY23, with target to increase the total addressable market.

Financial Snapshot (Standalone) Price Performance (%)

(Rs mn) FY17 FY18 FY19 FY20 FY21 1m 3m 6m 12m This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
Net Sales 7,834 7,419 9,030 11,621 11,309 Absolute Returns 7.6 1.5 -2.9 N/A the recommendation:
EBITDA 1,343 1,221 1,486 2,303 2,620 Rel to Nifty -0.4 -5.6 -3.2 N/A
EBITDA Margin (%) 17.1 16.5 16.5 19.8 23.2 Emkay Research
APAT 745 760 911 1,267 1511
EPS (Rs) 4.9 4.9 5.9 8.2 9.8
EPS (% chg) 2.0 19.8 39.1 19.3
ROE (%) 13.3 12.3 12.9 16.1 16.9
P/E (x) 54.1 53.0 44.2 31.8 26.7
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 48
 Emkay
This report is intended for Research
India Equity '[email protected]'
| Residential, Commercial use and downloaded at 8/11/2022 10:45:05 AM
Projects
©
August 10, 2022
Conference Note

Control Print Refer to important disclosures at the end of this report

Your success is our success

Consumables to drive EBITDA margin CMP

Rs468
MCap (Rs bn)
8
TP & Rating
NOT RATED

We hosted Mr. Shiva Kabra, Promoter and Joint MD, Mr. Jaideep Barve, CFO, and Mr. Vinay Pandit, IR
 Control Print is primarily manufactures Indian coding and marking printers, catering to ~2,600 strong customer base through two factories and ~700+ employees.
Printers were between 18% to 19%, consumables were 56-57%, spares and service were 22%-23%, and the balance was on the mark division. VAS forms the rest,
which will be the focus area going ahead. At present, it serves ~2,447 pin codes and 1,624 cities.

 The industry size is ~Rs1,600crore, of which the top four form ~Rs1,300 crore. Dominies forms ~31% market share, while the company has 19-20% share. Generally,
the sector is niche and grows at 1.5x of GDP in India. Globally, the sector grows at 4-5%.

 It has ~60% gross margins, while EBITDA margin stands at 23-24%. Employee cost forms ~18%, while ad and sales expenses form ~5% of the total cost.

 The company has the capability to cater to the various sectors and sub-sectors, various segments and sub segments, different products, and its variations across most
geographies. The company is very well focused on technology to improve its capabilities and scalability.

 At present, the company is a debt-free company with cash of Rs60cr. The company generates healthy FCF with no major capex plans.

 It has recently acquired Netherlands-based Markprint for €1.5mn and targets revenue of €10mn in the coming 3-4 years. Margins remain healthy. This company was
acquired for primarily for technological capability and marking its footprint into European countries. The acquisition gives Control Print complete access to Markprint’s
technology related to high-quality single pass printing for packaging and industrial applications and will expand its product offering and integrated solutions for
applications such as inventory control, branding, and traceability. High demand of such capability was seen in India too.


Financial
 Snapshot (Consolidated) Price Performance (%)
This report is solely produced by Emkay Global. The
(Rs mn) FY18 FY19 FY20 FY21 FY22 1m 3m 6m 12m following person(s) are responsible for the production of
Net Sales 1,738 1,746 1,949 2,037 2,562 Absolute Returns 4.5 6.5 27.2 33.2 the recommendation:

EBITDA 501 400 417 458 593 Rel to Nifty -3.3 -1.0 26.7 23.6 Emkay Research
EBITDA Margin (%) 28.8 22.9 21.4 22.5 23.2
APAT 344 263 299 306 375
EPS (Rs) 21.0 16.1 18.3 18.7 23.0
EPS (% chg) 93.4 -23.4 13.6 2.3 22.7
ROE (%) 24.5 15.2 16.3 15.2 16.3
P/E (x) 22.2 29.0 25.5 25.0 20.3
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 49
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
India Equity Research | Materials Recycling
©
August 10, 2022
Conference Note

Gravita India Refer to important disclosures at the end of this report

Your success is our success

Upbeat on growth CMP

Rs281
MCap (Rs bn)
19.4
TP & Rating
Rs430 | BUY

Key takeaways were:

 Company targets ~25% volume CAGR over FY23-26E, with 30-35% earnings CAGR, while EBITDA margins are expected to stabilize at ~9.5-10%. Current volume
run-rate is better than that in Q1FY23. The long-term normative EBITDA/ton guidance is Rs16-17k for lead, Rs17-18k for aluminium, and Rs12-13k for plastics.

 FY23 capex would be Rs700- 800mn. The Mundra peak volume ramp-up is expected within two years, besides savings in logistics costs. Also, post expansion,
volumes from the Chittoor plant are expected to increase by 9-11ktpa.

 Company plans to add rubber recycling verticals to its existing plants, with Ghana already operational. It continues to focus on increasing the share of VAP in its mix
(42% in FY22), while affirming that foreign operations will continue to garner 30-35% revenue share in future.

 Demand for recycled plastics, aluminium, and lead continues to be robust in the USA and EU, led by favorable regulations. Domestic scrap availability continues to
gather pace. GRAV plans to start a PET recycling plant in India, for the manufacture food grade resins that have premium pricing. GRAV evaluates projects with a
payback of less than 3 years and 7-8x revenue generation vis-à-vis capex invested. It enjoys asset turnover of ~8-9x.

 GRAV enjoys an advantage of setting up a plant in half the time as compared with a competitor, due to its in-house expertise developed by the turnkey business.
GRAV differentiates itself through its geographical presence across India and in Africa, besides its scrap-sourcing capability.

 GRAV is actively advocating GST on collection of scrap, through a reverse charge mechanism, in order to eliminate the current pricing differential between the
organised and unorganised sectors.

Financial Snapshot (Consolidated) Price Performance (%)

(Rs mn) FY21 FY22 FY23E FY24E FY25E 1m 3m 6m 12m This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
Revenue 14,097 22,159 28,510 33,471 42,407 Absolute Returns 12.1 -7.5 -25.5 45.1 the recommendation:
PBT 709 1,646 2,095 2,535 3,416 Rel to Nifty 3.8 -14.0 -25.8 34.6
PBT Margin (%) 5 7 7 8 8 Sabri Hazarika
[email protected]
APAT 525 1,394 1,707 1,979 2,628 +91 22 6612 1282
EPS (Rs) 7.6 20.2 24.7 28.7 38.1
EPS (% chg) 58.2 165.6 22.5 15.9 32.8 Harsh Maru
[email protected]
ROE (%) 23.0 45.3 39.2 33.7 33.7 +91 22 6612 1336
P/E (x) 36.9 13.9 11.4 9.8 7.4
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 50
 Emkay
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
India Equity Research | Pharmaceuticals
©
August 10, 2022
Conference Note

Dr. Reddy’s Lab Refer to important disclosures at the end of this report
Your success is our success

Maintains 25-25 guidance CMP

Rs4242
MCap (Rs bn)
706
TP & Rating
NOT RATED

The key takeaways of the conference are:

 North America: Sales for the quarter were impacted due to increased competition in Saboxone, Vescepa, and Vasopressin. Price erosion in the US is within normal
trends of the last few quarters. Estimated price erosion was 4-5% qoq. Management believes price erosion will continue at this level, but this will be offset by new
launches. Moreover, management believes price erosion of injectables and non-injectables is similar. On a long term basis, management expects the US business to
register a single-digit CAGR. Nevertheless, US remains a large market and will continue to contribute from the base business. While in years when there are high
value launches, there will be double-digit growth. Management expects gRevlimid to be launched in September 2022 and has exclusivity for two strengths.

 India: Currently, the company is in top-10 in IPM and aspires to be in the top-5. To achieve this, the company cannot rely only on organic growth and, thus, it will be
dependent on inorganic growth. Currently, the acute portfolio is around 70%.

 Investments: Incremental investments in the US will be on the lower side. US dedicated R&D is 20% of what it used to be five years ago. Incremental investments will
be towards non-US businesses, which management believes will grow in double digits. Acquisition preference will be over brands rather than companies. Management
expects R&D spends to be 9-10% of sales.
 Guidance: The company maintains double-digit revenue growth, 25% EBITDA margin, and 25% ROCE.

Financial Snapshot (Consolidated) Price Performance (%)

(Rs mn) FY18 FY19 FY20 FY21 FY22 1m 3m 6m 1yr This report is solely produced by Emkay Global. The
Revenue 1,42,810 1,53,851 1,74,600 1,89,722 2,14,390 Absolute Returns -3.3 8.8 -2.5 -10.7 following person(s) are responsible for the production of
the recommendation:
EBITDA 23,512 31,332 37,393 44,775 46,101 Rel to Nifty -10.5 1.2 -2.9 -17.1
EBITDA Margin Naman Bagrecha
16.5 20.4 21.4 23.6 21.5
(%) [email protected]
APAT 9,468 18,794 32,553 25,917 31,129 +91 22 66121235
EPS (Rs) 57.0 113.1 195.9 155.9 187.2
EPS (% chg) (26.8) 98.3 73.2 (20.4) 20.1
ROE (%) 7.6 14.1 22.1 15.8 17.1
P/E (x) 74.3 37.5 21.6 27.2 22.7
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 51
 Emkay
This report is intended for '[email protected]'
India Equity Researchuse and downloaded at 8/11/2022 10:45:05 AM
| Power
©
August 10, 2022
Conference Note

Adani Green Energy Refer to important disclosures at the end of this report
Your success is our success

Future source of energy CMP

Rs2,165
MCap (Rs bn)
3,430
TP & Rating
NOT RATED

We hosted Mr. Viral Raval (Lead IR ) and Mr. Arpit Mundra (IR)
Key Meeting Takeaways
 Abu Dhabi-based international holdings company is in the process of investing USD500mn as capital in Adani Green Energy Limited (AGEL). This will be a long-term
investment in India as the country is driving much innovation globally, especially in the green energy sector.

 5.8 GW of current operational capacity with the aim to reach 25 GW by 2025 and 45 GW by 2030.

 The company has under execution projects of ~11GW and ~3.2GW of near construction projects. Locked in growth of ~20GW.

 Purchasing from solar modules from China is still currently cheaper even after tariffs; purchasing from China is expected to continue for the next couple of years till full
backward integration for solar manufacturing is achieved in India.

 The sale of energy has increased by 72% to 9.426mn units, backed by robust addition of 1.940MW renewable capacity over the past one year along with improved
solar and green CUF.

 The company is targeting a capex figure of Rs20,000cr for the next four years i.e., Rs80,000cr, which will lead to 3-3.5 GW of greenfield being added annually and
approximately totalling to 13GW over the span of four years.

Financial Snapshot (Consolidated) Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY18 FY19 FY20 FY21 FY22 1m 3m 6m 12m
following person(s) are responsible for the production of
Net Sales 14,803 20,580 25,490 31,240 51,330 Absolute Returns 12.7 -24.7 12.3 137.8 the recommendation:

EBITDA 8,335 15,255 12,590 21,510 35,100 Rel to Nifty 4.3 -29.9 11.9 120.6 Abhineet Anand
[email protected]
EBITDA Margin (%) 56.3 74.1 49.4 68.9 68.4
+91 22 6624 2466
APAT -1,282 -4,737 1,790 2,949 4346
Abhishek Mody
EPS (Rs) 1.1 1.9 2.7 [email protected]
EPS (% chg) - - - 64.7 47.4 +91 22 6624 2491

ROE (%) - - 8.3 12.9 18.1 Chinmay Kabra

[email protected]
P/E (x) - - 1916.1 1163.1 789.1
+91 22 6624 2453
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 52
 Emkay
This report is intended for '[email protected]' use
India Equity Research and downloaded at 8/11/2022 10:45:05 AM
| Retail
©
August 10, 2022
Conference Note

Ethos Limited Refer to important disclosures at the end of this report

Your success is our success

Expects continuation of strong growth trends, led by structural CMP MCap (Rs bn) TP & Rating
tailwinds and differentiated capabilities Rs997 23 NOT RATED

Key takeaways:
 After delivering ~24% revenue growth in FY22 over FY20 (pre-Covid), Ethos expects strong growth trends to continue with 30-35% growth expected in FY23E. Growth
commentary was encouraging beyond FY23E as well, led by increasing HNI population, domestication of purchases, and Ethos’ omni-channel capabilities.

 Domestication of purchase expectations (vs. abroad) are based on improved product assortment in India and improving price parity vs. global destinations. Ethos
plans to grow faster than the industry, led by its pan-India retail presence, ahead-of-the-curve omni-capabilities, and differentiated post purchase services in terms of
warranty/insurance.

 Store expansion is expected to pick-up in H2FY22 from its store count of ~50 stores, led by entry into Tier-2 markets such as Indore, Pune, and Ahmedabad through
flagship stores. According to Ethos, flagship stores offer better unit metrics and offer its customers differentiated experience through better merchandising and store
events.

 Ethos signed exclusive distribution partnership with luxury watch brands – Jacob and Norqain, increasing its exclusive partnerships to 35 brands out of 50+ brands
retailed by Ethos. Exclusive brands and online-led billings contribute ~30% to its overall billings. Exclusive brands offer better gross margins, as Ethos gets distributor
margins in addition to retail margins for such sales.

 Q1 EBITDA margins (post-IndAS) improved by ~330bps to 15.6% vs. pre-Covid, led by ~150bps gross margin gains and rest contributed by operating leverage margin
gain. Gross margin gains were led by lower discounting trends in Q1, which the company expects to sustain in a strong demand environment. PAT for Q1 stood at
Rs128mn vs. Rs234mn in FY22.

Financial Snapshot (Consolidated) Price Performance (%)

1m 3m 6m 12M This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
Absolute Returns 28.2 NA NA NA the recommendation:
Rel to Nifty 18.7 NA NA NA
Emkay Research

Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 53
 Emkay
This report is intended for Research
India Equity '[email protected]'
| Residential, Commercial use and downloaded at 8/11/2022 10:45:05 AM
Projects
©
August 10, 2022
Conference Note

Mahindra Lifespace Developers Refer to important disclosures at the end of this report
Your success is our success

Strong demand outlook driven by the new launches CMP

Rs428
MCap (Rs bn)
66
TP & Rating
NOT RATED

We hosted Mr. Sumit Kasat, Senior General Manager, and Mr. Vimal Agarwal, CFO
Key Meeting Takeaways

 The company achieved sales of Rs. 602 crore, a 3-fold jump YoY and 85% QoQ in Q1FY23. Q1 tends to be a bit softer, but they have been able to grow very strong
on the back growth across the segments and strong launches in Bengaluru and Gurgaon. Eden in Bengaluru was India's first net-zero energy project which saw a
good traction along with new phase at Happinest Tathawade which has again done quite well.

 Recently, the company had launch Amansa, Nestalgia and Pimpri Pune. During Q1FY23, signed an agreement to acquire a land parcel in Pimpri having development
potential of ~2.14msft. Pune's work Biophilia-inspired homes, again has received great response, 250 units launched, more than 50% were sold within a month.

 The project at Alibaug is progressing at a very slow pace, don’t foresee much growth.

 The company acquired 11.5 acres of land parcel in Pune having a development potential of 2.1msf and GDV of Rs. 1700 crores. It has Rs. 5000 crore land deals in
pipeline at various stages. Mumbai and Pune regions are expected to account for 40% each and Bangalore 20% of the business development.

 The company would have maiden foray into society redevelopment during this year.

 The Development of Enterprise and Service Hubs (DESH) bill is expected to provide a significant upside to its Jaipur IC as Jaipur is strategically located for domestic
and exports perse. The DFCC and other infra projects will provide the growth opportunities further.

 Debt: The consolidated debt stands at Rs. 327 crores while cash & Bank is at Rs. 402 crores. Overall Consolidated cost of debt stood at 6.79%

Financial Snapshot (Consolidated) Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY18 FY19 FY20 FY21 FY22 1m 3m 6m 12m following person(s) are responsible for the production of
Net Sales 5,662 5,928 6,109 1,663 3,936 Absolute Returns 1.2 16.6 64.5 70.6 the recommendation:

EBITDA 574 258 -2,159 -935 -895 Rel to Nifty -6.3 8.4 63.9 58.3 Emkay Research
EBITDA Margin (%) 10.1 4.4 -35.3 -56.2 -22.7
APAT 983 1,190 -622 -718 683
EPS (Rs) 6.4 7.7 4.4
EPS (% chg) -3.8 21.0 - - -
ROE (%) 5.2 6.0 - - 4.0
P/E (x) 67.3 55.6 - - 96.9
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 54
 Emkay
This report is intended for '[email protected]'
India Equity Research | use and downloaded at 8/11/2022 10:45:05 AM
Telecom
©
August 10, 2022
Conference Note

HFCL Refer to important disclosures at the end of this report

Your success is our success

Strong growth prospects CMP

Rs75
MCap (Rs bn)
103
TP & Rating
NOT RATED

 HFCL is looking for growth opportunities from 5G rollout and expects telcos to expand their network with potential spend of ~Rs3.5trn over the next 3-4 years. HFCL is
well positioned to take advantage of this opportunity. Other opportunities include BSNL 4G network expansion, BharatNet project, and FTTH expansion.

 On the defence side, the government is focusing on procuring ~65% of its requirement locally. The defence business is still in field trial stage and will take a year for
approvals. Hence, no revenue is expected from defence in the current FY.

 Due to development of new products, HFCL’s FY23 target is to achieve revenue of Rs4.50bn and see significant growth in FY24. HFCL’s market share in this business
is ~25% and total domestic market size is ~Rs14bn. HFCL’s pricing is cheaper than competitors. Routers/switches/5g products will be launched gradually in this FY
and early next FY.

 HFCL added two new 100% subsidiaries in the US and has set up offices in Europe, US, and Middle East. FY23 target for exports is Rs7.5bn and HFCL has achieved
Rs1.9bn of revenue in Q1FY23.

 HFCL has 60% domestic market share in OFC currently. OFC proportion of exports was 15%/30% in FY22/Q1FY23. Prices for fiber corrected sharply last year from
$8/fkm to $4-5. In absolute terms this has an impact on revenue, but overall margins are intact since the impact passed on to the customer. Average cost of sourcing
fiber is ~Rs400/fkm. HFCL is the largest buyer of fiber, which helps in sourcing at better prices.

Financial Snapshot (Consolidated) Price Performance (%)

(Rs mn) FY17 FY18 FY19 FY20 FY21 1m 3m 6m 12m This report is solely produced by Emkay Global. The
following person(s) are responsible for the production of
Net Sales 21,314 32,274 47,378 38,389 44,230 Absolute Returns 28.7 9.7 -6.9 3.8 the recommendation:
EBITDA 1,869 2,814 4,154 4,930 5,455 Rel to Nifty 19.1 2.1 -7.2 -3.7
EBITDA Margin (%) 8.8 8.7 8.8 12.8 12.3 Naval Seth
[email protected]
APAT 1,206 1,693 2,217 2,272 2420 +91 22 6624 2414
EPS (Rs) 0.9 1.2 1.6 1.6 1.8
Pulkit Chawla
EPS (% chg) 40.4 31.0 2.5 6.5
[email protected]
ROE (%) 12.5 15.8 16.9 14.6 13.5 +91 22 6624 2458
P/E (x) 85.1 60.6 46.3 45.2 42.4
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 55
 Emkay
This report is intended for '[email protected]'
India Equity Researchuse and downloaded at 8/11/2022 10:45:05 AM
| Textile
©
August 10, 2022
Conference Note

Indo Count Refer to important disclosures at the end of this report

Your success is our success

Medium-term prospects remain positive CMP

Rs145
MCap (Rs bn)
29
TP & Rating
NOT RATED

We hosted Mr. KK Lalpuria (CEO)

Key Meeting Takeaways
 Acquisition of GHCL Limited makes the company one of the largest global home textile bed linen companies with an annual capacity of 153 million meters. The
company expects the consolidation synergies to reflect once volumes start to pick up.

 Indo Count is expanding its capacity from 90mn meters to 108mn meters in the current fiscal. It is also increasing its spindles capacity by 70,000 spindles in two
phases, 25,000 spindles in phase 1, followed by 45,000 spindles in phase 2. This is part of the integration process as GHCL was for home textile only.

 The company has highlighted that while there are short-term issues around demand and high cotton prices, medium-term positives include lower cotton future price,
better expectation of cotton harvest, China+1 strategy, and new FTAs.

 With FTA agreements being signed with Australia and UAE, the company is optimistic on the opportunities these agreements will provide to grow their market share in
these countries. The company expects positive expectation from the FTA with Europe and UK.

Financial Snapshot (Consolidated) Price Performance (%)

This report is solely produced by Emkay Global. The
(Rs mn) FY17 FY18 FY19 FY20 FY21 1m 3m 6m 12m
following person(s) are responsible for the production of
Net Sales 21,528 18,585 19,342 20,801 25,192 Absolute Returns 3.8 0.1 -31.3 -46.8 the recommendation:

EBITDA 3,235 1,625 1,557 848 3,730 Rel to Nifty -3.9 -6.9 -31.5 -50.7 Abhineet Anand
[email protected]
EBITDA Margin (%) 15.0 8.7 8.1 4.1 14.8
+91 22 6624 2466
APAT 2,330 1,263 602 1,536 2537
Abhishek Mody
EPS (Rs) 11.8 6.4 3.0 7.8 12.9 [email protected]
EPS (% chg) -45.8 -52.4 155.4 65.1 +91 22 6624 2491

ROE (%) 27.5 14.0 6.2 15.7 22.3 Chinmay Kabra

[email protected]
P/E (x) 12.3 22.7 47.7 18.7 11.3
+91 22 6624 2453
Source: Company, Emkay Research (Based on closing share price as on 8th Aug, 2022)
Earnings at Risk
Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM
as defined in the Securities and Futures Act, Chapter 289 of Singapore. 56
 This report is intended for '[email protected]' use and downloaded at 8/11/2022 10:45:05 AM

Emkay Rating Distribution

Ratings Expected Return within the next 12-18 months.

BUY Over 15%
HOLD Between -5% to 15%
SELL Below -5%

Completed Date: 11 Aug 2022 06:59:26 (SGT)

Dissemination Date: 11 Aug 2022 07:00:26 (SGT)

Sources for all charts and tables are Emkay Research unless otherwise specified.

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Earnings at Risk
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Digitally signed by SANJAY CHAWLA

SANJAY
DN: c=IN, o=EMKAY GLOBAL FINANCIAL
SERVICES LIMITED, ou=-,
2.5.4.20=0e110317a8bd3bd3f96249f6a4c
209160ecb5613fd9b5a6ec3cfa00ceb009
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CHAWLA
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c37ed0d9ea162f9fc49c24ac020da16b92

Earnings at Risk
3271eaebb, cn=SANJAY CHAWLA
Date: 2022.08.11 04:34:34 +05'30'

Emkay Research is also available on www.emkayglobal.com and Bloomberg EMKAY<GO>. Please refer to the last page of the report on Restrictions on Distribution. In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors
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