reduced stock with price target of rs.66 of andhra bank’s - india equity analytics today

8/13/2019 Reduced Stock with Price Target of Rs.66 of Andhra Banks - India Equity Analytics today

1/21

ANDHRABANK: "REDUCE" 2nd Jan 2014

During quarter (3QFY14) Andhra Banksstock performance was ahead of fundamental in our view as there are multiple headwinds associate

with bank like earnings quality, impairment of asset, deposits cost etc. Asset quality of bank remained high at 5% and expected to remain aelevated level along with higher restructure asset. According to banksmanagement, restructure and non performing asset would consists 18%

of total asset in FY14 means 82% of assets has to service 100% of liability which itself challenging especially when bank with average earning

high cost of fund and downward trajectory of provision coverage ratio. ...................................... ( Page : 2-4)

IT Industry; from 2013 to 2014:"a year of innovation and transformation" 1st Jan 2014

2nd Jan, 201

Edition : 175

IEA-Equity

Strategy

31th Dec 2013

"HOLD"

Last week, V Balakrishnan a former CFO and member of Board director resigned from the company to turn entrepreneur of Private Equity spac

Currently, he is the head of Infosys business process outsourcing unit, the company's core banking software Finacle, its India business and

chairman of Infosys Lodestone. This was now the 8th senior and top level departure after the taking charges by Company founder Narayan

Murthy. At a CMP of Rs 3486, it trades at 19.2x FY14E and 16.7x FY15E earnings. We retain our BUYview on the stock with a target price o

tar et rice of Rs 3620............................... Pa e : 19- 20

DCB is currently trading at 1.3 times of one year forward book which is almost upper side of valuation band. We value the bank at Rs.62/shar

which is 1.4 times of one year forward book and 15 times of FY14E earnings. Valuation multiple is justified at present fundamental in our vie

but has potential to expand the multiple once visibility of ROE improvement clearly come to on the floor after 1-2 quarter......................................................... ( Page : 16-18)

J&K Bank is one of our prefer bank in mid cap private sector banking space. Currently bank is trading at 1 times of one year forward book and 4.

times of one forward earnings which we believe bank is still trading at attractive valuation post recent rally. We advice our investor to hold th

stock as bank is trading at lower valuation in comparison to private sector banks despite of having sound fundamental. We value bank a

Rs.1578/share which is 1.1 times of FY15s book and 5.2 times of FY15s earnings. ................................... ( Page : 13-15)

30th Dec 2013J&K BANK :

"BUY"RELIANCE : Good Growth Ahead

Reliance Industries Limited registered a turnover of Rs 197112 Cr for the half year ended 30th September 2013, up 4.7% YoY while it had mad

turnover of Rs 188,193 Cr in 1HFY13. The exports were higher by 19.3% YoY to Rs 134455 Cr for 1HFY14.. ( Page : 10-12)

With a cash-rich balance sheet and strong visibility over production growth of zinc, lead and silver over FY2013-15, we are positive on HZL.Th

Rampura Agucha underground mine project is operational via ramps (tunnel driven downward from the surface) and commercial production w

ramp up in Q3 and Q4 of FY14. The Kayad mine project will also commence commercial production in the current fiscal year. A cash-rich balanc

sheet, low cost of production and inexpensive valuations make HZL an attractive bet at the current price levels. But looking at the lower LM

prices for silver and lead we are neutral for this financial year.we Valuing the stock at this level, we recommend Neutral rating on HZL with

tar et rice of Rs.143 for FY14........................ Pa e : 7-9

Year 2014 promises to be bigger and stronger than the last two years, which were marked by bloodbath in global markets due to Euro-zon

crisis and falling consumer confidence in the US. Demand is set to pick up in sectors like BFSI, healthcare, retail and transportation globally in th

year ahead. FY 15E is going to be better that FY14E, which was better than FY13. It will be good for us as well as th

industry............................................ ( Page : 5-6)

DCB : "REDUCE" 27th Dec 2013

Infosys : Bala exit; a pros and cons? "BUY" 26th Dec , 2013

"Neutral"Hindustan Zinc LTD :

Narnolia Securities Ltd,

India Equity Analytics


2/21

64

66-

4

-

1M 1yr YTD

bsolute 0.5 -46.2 -46.2

el.to Nifty -1.4 -52.7 -52.7

Current 4QFY13 3QFY1

omoters 58.0 58.0 58.0

I 13.3 13.3 13.0

I 12.4 14.6 15.2

hers 16.4 14.1 13.8

Financials Rs, Cr

2011 2012 2013 2014E 2015E

NII 2195 3759 3757 4143 4694

Total Income 3159 4619 4804 5529 6081

PPP 1810 2815 2767 2765 3344

Net Profit 1046 1345 1289 1131 1433

EPS 22.6 24.0 23.0 19.2 24.3

kt Capital (Rs Cr)

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

(Source: Company/Eastwind)

ock Performance

wk Range H/L

hange from Previous

ndhra Bank Vs Nifty

hare Holding Pattern-%

1.09lac

fty 6304

MP

arget Price

Dur ing quar te r (3QFY14) Andhra Banks per fo rmance was ahead

fund amental in our view as there are mu lt iple headwind s assoc iated with ban

like earning s quality, impairm ent of asset, depos its cost etc. At the end 2QFY14, banksrestructu re acco unt co nsis ts of 10.6% of total ass et which w

go up 13% of total ass et in full year alon g with 5% of NPA acc ord ing to th

manag ement. This imp lies that 82% of total asset has to serv ice 100%

liabil i ty wh ich wo uld be real challeng es for the bank as per our view. In th

regards, we analyze trend of imp airment ass et, earning qu ality and cos t

dep os its and tweak ou r earnin gs estim ate and value bank at 0.4 tim es of boo

Banksvaluat ion m ay com e down to 0.3 t imes (histor ica l low) looking

banksown stress and fund amental. We have reduced rat ing on the stock w i

pr ice targ et of Rs.66.130/47.15

SE Code 532418

SE Symbol ANDHRABANK

ompany UPDATE REDUCE

ANDHRABANK

High impairment asset with downward trajectory of PCR

We observed that banksdeterioration in asset quality was much ahead of peegroup in term of fresh slippage and restructure assets. BanksGNPA and net NP

during the last quarter was 5.3% and 3.5% much above of industry average of 3.5

and 2.5% respectively. Asset quality trend is likely to remain at elevated level as p

management. Total restructure asset consist of 10.6% of total asset and anoth

Rs.3000 cr are in the pipeline means around 13% of total asset will go for restructu

and about 50% of fresh restructure slip into non performing asset. If the tren

continued then GNPA would be 5.5% which would itself alarming specially for t

bank because its provision coverage ratio without technical write off was low at 33%

Bank has been continuous downward trajectory of PCR which implying very lit

cushion for its future earnings.

Average quality of earnings asset and stress in other segment keep NIM at lo

During 2QFY14, banksadvance grew by 15% YoY and yield on advance declined

11.4% as against average run rate of 12%. We model 15% of advance growth w

11% of loan yield for FY14E and FY15E largely due to challenging econom

environment and present running trend. Earnings asset especially with loan a

investment yield have nothing extraordinary as far as we observed and are likely

remain at average quality. With average quality of earnings asset and stress in oth

segment would keep NIM at low.

verage Daily Volume

1473

evious Target Price

arket Data

pside

"REDUCE"2nd Jan, 2014



3/21

aluation Band

ANDHRABANK

Source:Company/Eastwind


ASA trend declined; high cost of deposits

ankslow cost of deposits (CASA) trend has been declining from 35% in FY07 to 24%

2QFY14. We observed that banks CASA ratio remained stick to 24% in last 7-8

arters. In rising interest rate scenario, cost of deposits could not be sustained at 7.5 to

% without adequate support of CASA. In term of deposits cost, Andhra bankscost ofeposits remain high at 7.7 %( 2QFY14) as compare to peers average of 7%. However

e model 7.5% of cost of deposits and 24% of CASA for FY14E and FY15E in line with

esent trend.

ew & Valuation

ndhra Banks stock performance during the quarter (3QFY14) was ahead of

ndamental in our view. There are multiple headwinds regarding the earnings and asset

uality which would erode the book value in FY14. At the end of 2QFY14, banks

structure account consists of 10.6% of total asset which will go up 13% of total asset in

l year along with 5% of NPA according to the management. This implies that 82% of

tal asset has to service 100% of liability which would be real challenges for the bank as

er our view. In the regards, we analyze trend of impairment asset, earning quality and

st of deposits and tweak our earnings estimate and value bank at 0.4 times of book.

anks valuation may come down to 0.3 times (historical low) looking at banks own

ress and fundamental. We have reduced rating on the stock with price target of Rs.66.



4/21

ANDHRABANK

Source: Eastwind/Company



ncome Statement 2011 2012 2013 2014E 2015E

terest Income 6373 11339 12910 15555 17818

terest Expense 4178 7579 9153 11412 13124

II 2195 3759 3757 4143 4694

hange (%) 34.9 71.3 -0.1 10.3 13.3

on Interest Income 965 860 1047 1387 1387

otal Income 3159 4619 4804 5529 6081

hange (%) 32.1 46.2 4.0 15.1 10.0

perating Expenses 1350 1804 2037 2765 2736

re Provision Profits 1810 2815 2767 2765 3344

hange (%) 40.5 55.5 -1.7 -0.1 21.0

rovisions 374 991 996 1215 1382

BT 1436 1824 1771 1549 1963

AT 1046 1345 1289 1131 1433

hange (%) 60.2 28.6 -4.1 -12.3 26.7

alance Sheet

eposits( Rs Cr) 77688 105851 123796 142365 163720

hange (%) 31 36 17 15 15

f which CASA Dep 22864 27947 31759 34168 39293

hange (%) 23 22 14 8 15

orrowings( Rs Cr) 5852 8241 11119 13225 15209

vestments( Rs Cr) 20881 29629 37632 43565 50100

oans( Rs Cr) 56114 83223 98373 113129 130099

hange (%) 27 48 18 15 15

atio

vg. Yield on loans 9.2 11.1 10.5 11.0 11.0

vg. Yield on Investments 5.7 6.7 6.6 7.0 7.0

vg. Cost of Deposit 4.9 6.6 6.9 7.51 7.51

vg. Cost of Borrowimgs 6.4 7.7 5.4 5.5 5.5

aluation

ook Value 91 134 151 166 190

MP 108 119 95 63.6 63.6

/BV 1.2 0.9 0.6 0.4 0.3


5/21

IT Industry; from 2013 to 2014

Favorable supply side scenario:

SMAC as new emerging opportunity:

fty and CNX IT Performance(2013); IT Industry with perception "I can do it better"

The year 2013 has proved a year of innovation and transformation for IT indust

across all verticals and geographies led by healthy demand environment and posit

factors for Industry, Indian IT Industry came to track with positive surprise a

opportunities. The resilient of $120bn plus IT Industry returned to higher grow

trajectory in 2013 and expecting to retain its momentum in the ensuring year fo

greater share of global multi-billion dollar IT Industry.

"a year of innovation and transformation"

Euro zone was a pleasant surprise in 2013 with no bad news surfacing from that part

the world. But that does not mean the sovereign debt problems have been solv

permanent. The attractiveness of Europe as a market is being reflected in the acquisit

activity within Tier-I IT (Valuesource, Equinox and C1 Group by Cognizant, Alti by TCS a

Infosys' acquisition of Lodestone).

Though attrition remained higher than last year, especially among the bellwethe

campus hiring and fresh offers declined during the year. However, utilization ra

especially on onsite and offshore are on increasing mode, it indicates favorable supp

side scenario for the industry.

Pleasant surprise from Euro zone:


With its top 4 bellwethers TCS, Infosys, Wipro and HCL- have been consolidated

presence in software service sector. Now, new players with expertise in new emerg

services have entered into the marathon race and performing well in all aspec

Indian IT Industry has been successful to maintain double-digit growth again in exp

as well as in the domestic markets.

INR Depreciation:

Factors behind the success story of IT Industry in 2013:

R/USD&CNX IT Performance(2013);

SMAC (social, mobile, analytics and cloud ) is throwing up huge opportunities as firm

want to optimise investments in current technology and drive growth by using digi

technologies and platforms. The digital forces of SMAC will reach mainstream status

2014 and create requirements, drive new purchasing and establish new competiti

realities.



013 has been a year of innovation and

transformation

The Indian IT governing body NASSCOM is expecting to clock 12-14% revenue growth

USD term for FY14E, while Industry had reported 10-12% range of growth in FY13

Now, we expect higher growth with stable margin trajectory for FY 15E than previo

years led by healthy demand scenario and offering new delivery platform like analytimobility, cloud, social media and emerging verticals such as healthcare and medic

devices.

NASSCOM on positive mood:

The Indian Rupee (INR) has depreciated against USD roughly by around 13-14% since J

1, 2013. The INR depreciation is favorable for all exporters and IT companies. As

thumb rule, a 1% change in value of the rupee against the US dollar has an impact of 3

40 bps on the operating margins of a company. During the 2QFY14, across the IT spac

companies reported healthy ramp up in operating margin.


59.5%

6.8%

59.5%

13%


6/21

- Govt mulls fresh incentives for IT companies,

-Software exports to grow 12-14% to clock $84-87 billion in FY14E,

-Domestic market to also grow 14% to $185 billion in FY14E,

-N.R. Narayana Murthy returns to Infosys as chairman,

-8 top executives quit Infosys in 6 months,

-Wipro hives off non-IT business as separate enterprise,

-Industry diversifies into offering new services & products,

-Campus hiring and fresh offers dip despite higher attrition,

-Thrust on providing IP-led solutions on multiple platforms,

e have seen a significant increase in global technology spending this year, creating

pportunities for the Indian software services sector to post double digit growth again in

port as well as in the domestic markets.

FY 15E is going to be better that FY14E

which was better than FY13. It will be

good for us as well as the industry

(Source: Company/Eastwi

ghlights of 2013: Performance of Our IT Coverage

oncerns:

owever, hardening of regulatory related to visa approval in USA, Canada and Australia

uld spoil the party. Even, the approval of Immigration Bill attached with higher visa fee,

age requirements and enhanced audit by US agencies could turn the growth story of

dian IT players adversely. If passed in its current form, the Bill could hurt the margins

the Indian IT export sector, which derives almost 55-60% of its revenues from USA.

014 and IT Industry: Another year of flawless ride

anks to playing a pivotal role of technology across transforming delivery of diverse

rvices in the government and private sector, the domestic market is also maturing and

one of the fastest in the developing countries.

(Source: Company/Eastwin

IT Industr ; from 2013 to 2014


ar 2014 promises to be bigger and stronger than the last two years, which were marked

bloodbath in global markets due to Euro-zone crisis and falling consumer confidence in

e US. Demand is set to pick up in sectors like BFSI, healthcare, retail and transportation

obally in the year ahead.

ew and Valuation;


CMP Upside

(31.12.13) % FY13 FY14E FY15E FY13 FY14E FY15E FY13 FY14E FY15

S 2170.95 BUY 2369.1 9.1% 71.82 90.74 102.37 30.23 23.92 21.21 36.42% 36.22% 32.95

FOSYS 3485.5 BUY 3982.7 14.3% 164.2 181.1 208.2 21.23 19.25 16.74 24.8% 23.0% 22.2

CLTECH 1263.1 BUY 1415.5 12.1% 58.10 71.87 83.49 21.74 17.57 15.13 30.72% 29.10% 26.39

PRO 559.05 NEUTRAL 469.97 25.0 25.15 27.4 22.32 22.23 20.40 21.7% 18.9% 17.8

CHM 1838.05 BUY 2329.5 26.7% 85.48 144.15 161.64 21.50 12.75 11.37 35.91% 38.31% 30.38MC 1632 BUY 1692.5 3.7% 75.27 101.56 110.07 21.68 16.07 14.83 24.10% 25.81% 22.92

TTECH 360.5 BUY 408.32 13.3% 36.28 44.03 53.38 9.94 8.19 6.75 20.0% 19.6% 19.3

IT 171.55 BUY 177.33 3.4% 10.80 13.07 15.95 15.88 13.13 10.75 20.10% 19.80% 19.75

XAWARE 131.75 BUY 140.59 6.7% 11.1 13.1 14.3 11.87 10.09 9.21 27.2% 27.0% 26%

RSISTENT 980.05 REDUCE 960.51 46.12 63.40 76.92 21.25 15.46 12.74 18.1% 20.5% 20.4

LERX 1068.5 BUY 1357.9 27.1% 64.25 71.61 83.65 16.63 14.92 12.77 43.8% 37.9% 34.4

TAELXSI 415.65 REDUCE 236.85 10.63 17.53 19.76 39.10 23.72 21.03 16.94% 23.55% 22.37

NSARTECH 355.85 BUY 439.43 23.5% 40.03 57.16 74.62 8.89 6.23 4.77 23.22% 26.07% 26.34

RoE-%mpany View Target

EPS-Rs P/E-x


7/21

Hindustan Zinc LTD.

133

143

NA8%

NA

500188 Revenue increased due to Depreciation in Rupee

56133

5613

6291

1M 1yr YTD

solute 4.3 -1.7 -3.4

l. to Nifty 0.0 9.2 11.3

2QFY14 1QFY14 4QFY13

omoters 64.9 64.9 64.9

1.8 1.5 1.5

31.4 31.5 2.0

hers 1.8 2.1 31.6

Investment Concern

Financials : Q2FY14 Y-o-Y % Q-o-Q % Q2FY13 Q1FY1

Net Revenue 3826 13.0 6.2 3387 360EBITDA 1883 28.2 25.3 1469 150

Depriciation 186 6.3 1.1 175 18

Tax 254 -6.3 -4.9 271 26

PAT 1640 6.5 -1.2 1540 166(In Cr

erage Daily Volume (Nos.)

E Code

HINDZINCE Symbol

wk Range H/L

kt Capital (Rs Crores)

143/94

fty

Hind Zinc reported net sales of Rs3559 Cr up by 24% YoY and 19% QoQ. The growth wa

mainly due to higher sales volume and improvement in realisation per tonne. The ne

realsation per tonne of zinc increased by 15% on YoY basis and 9% QoQ at Rs.131794. Th

net realization per tonne of Lead remained almost flat on YoY basis and increased by 5%

in QoQ basis. The increase in net realization per tone is due to depreciation in rupeeZincscost of production before royalty during the quarter was Rs.50522 , 8% higher i

Rupee and 3% lower in USD terms on YoY basis.

side

ange from Previous

MP

rget Price

evious Target Price

Mined metal production in Q2FY14 was 221k tonnes against 190k tonnes YoY basis

growth of 8.5% and 238k tonnes in Q1 FY14. The increase is due to higher production a

Rampura Agucha and restarting of Zawar mines. Integrated Refined Zinc production wa

at 195k tonnes in Q2FY14 against 153k tonnes in Q2FY13 increase of 28%. IntegrateLead Production was at 29k tonnes against 22k tonnes growth of 31% YoY basis. Silve

production was at 83 tonnes in Q2FY14 against 77 tonnes YoY basis. The increase i

Production of Zinc and lead was on account of improved utilization of smelter capacity.

ompany Update Neutral

arket Data

The cost of production benefited from higher production volume and operation

efficiencies, which were more than offset by rupee depreciation and over Rs 3000/M

decline in by-product credits On YoY basis. The Net Realization per tonne of Silve

slumped by 24% on YoY basis. This fall in realization was due to fall in price of silver in

LME as company adopts the import parity price. The CompanysEBIDTA zoomed by 28%

YoY basis at Rs 1,883 Cr and 30% QoQ basis. Net profit was up 7% to Rs. 1,640 Cr in Q2

The positive impact of higher EBITDA was partly offset by lower other income due t

mark-to-market losses on investments during the quarter.

HZLsrevenues are directly linked with the global market for products essentially, Zin

and Lead which are priced with reference to LME prices and Silver to LBMA (Londo

Bullion Metal Association) prices.

Disruptions in mining due to equipment failures, unexpected maintenance problems

non-availability of raw materials of appropriate price, quantity and quality for our energ

requirements, disruptions to or increased cost of transport services or strikes an

industrial actions or disputes.Lower than expected demand by galvanizing industries fo

zinc and industrial batteries, car batteries industries for lead would affect the compan

estimates.


ock Performance-%

are Holding Pattern-%

yr Forward P/B

Source - Comapany/EastWind Research

"Neutral"31st Dec' 13


0

0

0

0

0

0

0

0

0

0

Jan-07

Jul-07

Jan-08

Jul-08

Jan-09

Jul-09

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14


8/21

wer other income mutes PAT growth: LME Price/Ton

om the Management Corner :

utlook and valuation:

LME Price/Ton

LME Price/Ton

FY11 FY12 FY13 FY14E

9912 11405 12700 13577

979 1543 2032 1787

10891 12948 14732 15364

1023 1228 1070 1291

492 568 696 707

4417 5336 6218 6484

5496 6069 6482 7093

475 611 647 718

19 14 29 371059 1419 921 1097

4900 5526 6899 6967

21.8 20.7 21.4 18.5

8

terest Costet tax expense / (benefit)

AT

OE%

epriciation

Hindustan Zinc LTD.

L PERFORMANCE

et Revenue from Operation

her Income

tal Income

e other income declined by 48.7% yoy to 267cr due to mark to market losses booked

the company during the quarter while depreciation expenses also increased by 6.8%

y to 186cr. Consequently the adjusted net profit growth was muted at 10.5% yoy to

701cr (in-line with our estimate of 1,722cr).

ith a cash-rich balance sheet and strong visibility over production growth of zinc, lead

d silver over FY2013-15, we are positive on HZL.The Rampura Agucha underground

ne project is operational via ramps (tunnel driven downward from the surface) and

mmercial production will ramp up in Q3 and Q4 of FY14. The Kayad mine project will

so commence commercial production in the current fiscal year. A cash-rich balance

eet, low cost of production and inexpensive valuations make HZL an attractive bet at

e current price levels. But looking at the lower LME prices for silver and lead we are

utral for this financial year.we Valuing the stock at this level, we recommend Neutral

ting on HZL with a target price of Rs.143 for FY14.

olatile Desel Price and high Sulphuric acid price affecting the company,s PAT

versly.Company is tracking on 95% capacity utilization.Captive plants enjoy the lower

x rate and company enjoys zero tax from tax free geographycal areas. Smelting Plants

e improvised and management is confident that the smelting plants will maintain

eir stance for the coming quarters also.

wer, fuel & water

pairs

penditure

ITDA





0

200

400

600

800

10001200

1400

1600

1800

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Silver(rs/ounce)

0

20000

40000

60000

80000

100000

120000

140000160000

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Lead

90000

95000

100000

105000

110000

115000

120000

125000

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Zinc


9/21

FY10 FY11 FY12 FY13

are 423 845 845 845

serve & 17701 21688 26036 31431

tal equity 18124 22533 26881 32276

ng-term 0 0 0 0ort-term 60 0 0 0

ng-term 0 0 0 0

ade 478 475 410 484

ort-term 340 567 504 825

tal 20238 25053 29485 35465

tangibles 109 109 47 10

ngible 6071 7145 8466 8474

pital 1113 875 445 1082

ng-term 361 594 876 1898

ventories 452 762 798 1111

ade 152 209 332 403

sh and 928 5633 5255 6942

ort-term 96 158 233 373

tal 20238 25053 29485 35465

FY10 FY11 FY12 FY13

B 3.2 2.2 2.1 1.7

S 95.6 11.6 13.1 16.3

ebtor to 1.9 2.1 2.9 3.2

editors to 6.0 4.8 3.6 3.8

ventories 0.6 0.8 0.7 0.9

FY10 FY11 FY12 FY13

sh from 4001 4483 4553 4935anges In 77 -212 -61 -183

et Cash 4077 4272 4492 4752

sh From -3881 -3658 -3499 -3234

sh from -187 -363 -1242 -1257

et Cash 8 250 -248 262

Hindustan Zinc LTD.

ZinC Productions:


S PERFORMANCE

rading At :

ATIOS

ASH FLOWS



EBIDTA & Margin :


0

20

40

60

80

100

120

140

160

0

1000

2000

3000

4000

5000

6000

7000 NIFTY HINDZINC


10/21

BUY

1M 1yr YTD

bsolute 4 6 11

el. to Nifty 0.5 -1 -7


omoters 45.3 45.3 45.3

17.7 17.4 17.8

I 11.8 11.6 11.0

hers 25.2 25.7 25.9

Rs, Cro

2QFY14 1QFY14 (QoQ)-% 2QFY13 (YoY)-%

Revenue 103758 90336 14.9 87645 18.4

EBITDA 9909 9610 3.1 9818 0.9

PAT 5490 5352 2.6 5409 1.5

EBITDA Margin 9.6% 10.6% (110bps) 11.2% (170bps

PAT Margin 5.3% 5.9% (60bps) 6.2% (90bps)

Half Year ly Bus iness Performance

wk Range H/L 954/765

SE Symbol RELIANCE

OIL AND GAS (EXPLORATION & PRODUCTION) BUSINESS:

Company for half year ended earned Rs 2918 Cr from this business segment down 38.7% YoY mainly due to Fall in production from KG-D6 owing to geological complexand natural decline in the fields.The EBIT margin for the segment in 1HFY14 was 24.3% .

REFINING & MARKETING BUSINESS

hange from Previous -

18%pside

Yr Price Movement Vs Nifty


283929

verage Daily Volume 52019

fty 6313

Financials

Reliance Industries Limited registered a turnover of Rs 197112 Cr for the half year end30th September 2013, up 4.7% YoY while it had made turnover of Rs 188,193 Cr1HFY13.The exports were higher by 19.3% YoY to Rs 134455 Cr for 1HFY14.

Revenue from Refining and Marketing segment during 1HFY14 increased by 5.7% YoYRs 178,914 Cr, while EBIT was up 8.3% YoY at Rs 6,125 Cr. GRMs averaged $ 8.0/bduring 1H FY14 and the refineries achieved an average utilization rate of 112%. 1H FY

export of refined products was at 22.1 MMT as compared to 19.2 MMT in 1H FY13.

PETROCHEMICALS BUSINESS


Half Year ly Financial Perform ance

The operating EBITDA during 1HFY14 was Rs 14924 Cr up 2.3 % YoY on the backhigher margins in refining and petrochemicals business. The cost RM increased by 3 %Rs 162,094 from Rs 156,975 Cr due to higher crude prices. The employee cost for 1HFYwas Rs 1707 Cr largely flat on yearly basis. The other expenditure increased by 13.6% Yto Rs 13,101 Cr primarily due to higher expenses on account of power & fuel consumptand higher selling expenses on account of higher exports.

The profit after tax was higher by 9.4% at Rs 10,842 Cr as against Rs 9,912 Cr in tcorresponding period of the previous year. The other income for 1HFY14 stands Rs 4595 up 14 % YoY mainly due to higher investment income.

1HFY14 revenue from the Petrochemicals segment increased by 6.7% YoY to Rs 46,8Cr. Higher prices accounted for 7.4% growth in revenue. EBIT margin improved to 9.4%1H FY14 as compared to 8.0% a year ago. The production during 1HFY14 was 11 MTones verses 11.1 Mn Tonnes in 1HFY13.

RELIANCEGood Growth Ahead

ock Performance-%


kt Capital (Rs, Cr)

arket Data

SE Code 500325

Abou t the Company

Reliance Industries Limited (RIL) is a conglomerate with business in the energy amaterials value chain. The Company operates in three segments: petrochemicals, refini

and oil & gas.

ompany UpdateMP 878

arget Price 1040

evious Target Price -

"BUY" 30thDec' 13



11/21



RELIANCE

ontinued.

ew and Valuat ione stock is trading at Rs 878 and in light of half yearly performance, business outlook and

anagement commentary we recommend BUY for the stock with Target Price Rs

40.

QFY14 SEGMENTAL REVENUE BREAK UP

raphical Depict ion

e net addition to fixed assets for the half year ended 30th September 2013 was Rs,154 Cr including exchange rate difference capitalization. Capital expenditure wasncipally on account of ongoing expansions projects in the petrochemicals and refiningsiness at Jamnagar, Dahej, Silvassa and Hazira.

e Outstanding debt as on 30th September 2013 was Rs 83,982 Cr compared to Rs,427 Cr as on 31st March 2013. The company had cash and cash equivalents of Rs,540 Cr. These were in bank deposits, mutual funds, CDs and Government securities /nds. RIL is debt free on a net basis as at 30th September 2013.

anagement Commentary

e management of the company on their half yearly performance said that diversified andegrated petrochemicals business captured margins across segments and delivered nearcord profit levels even as the domestic economy slowed. The management further saidat optimal utilization of best-in-class refinery assets and inherent flexibility in sourcing,

oduct delivery contributed to healthy operating profits from our refining business .



12/21

BITDA & OPM %


AT & NPM %



The improved margin and higher volume

the petrochemical (petchem) business w

the major drivers of the profit in Q2FY2014

Despite a healthy revenue growth, O

remain flat due to a lower margin in

refining and exploration segments


RELIANCE

les Trend (Rs/Bn)

A better realisation with a weaker rupee aimproved volume were the key drivers of

sales growth of both petchem and refin

businesses.



13/21

J&K BANK

1411

15781420

12

11

1M 1yr YTD

bsolute 3.6 7.8 7.8

el.to Nifty -12.9 -0.8 -0.8


omoters 53.2 53.2 53.2

I 24.8 24.5 24.3

I 5.0 4.9 4.9

hers 17.1 17.4 17.7

Financials Rs, Cr2011 2012 2013 2014E 2015E

NII 1544 1838 2316 2595 3091

Total Income 1908 2172 2800 2979 3817

PPP 1149 1370 1811 1906 2443

Net Profit 615 803 1055 1128 1478

EPS 126.9 165.7 217.6 232.6 304.9

Strong balance sheet growth con t inued with margin expansion

J&K bank aggressively expanding its loan growth outside of the state and witness

20.3% growth whereas within state loan grew by 26.4% in 2QFY14. Manageme

guided loan growth of 20-25% in FY14 premium of industry average of 15

Deposits growth would be 17-18% in FY14 according to management. BanksCAS

ratio at the end of 2Q stood at 39% which keep cost of deposits at 6% of level, o

of the lowest in industry. Low cost and high yield asset helped bank to maintain N

at 4.33%. Banks management guided NIM 4%+ level in FY14.

Sustainable high return ratio makes a strong case to trade at premium

valuation

J&K bank has sustainable high return ratio like ROE of 23%+ and ROA of 1.5%

which help bank to maintain high valuation premium. Operating leverage (operati

cost to total asset) of the bank remains at 1.4 to 1.6 times in last few quarters wh

restrict cost income escalate beyond 36%. Capital adequacy ratio of 13.2

according to basel-II helps bank to maintain high growth trajectory with raising capi

in next few years.

Stable asset quality with lowest restructure asset comparison to peers

ompany Update HOLD

MP

arget Price

Jammu and Kas hm ir Bank (J&K Bank ) is one of our prefer bank in mid ca

private sector ban king s pace. Currently bank is trading at 1times of one ye

forw ard book and 4.6 times of one forw ard earnings wh ich w e believe bank st i l l t rading at at t ract ive valuat ion despi te of recent ra l ly . We advice o

inves tor to hold the stoc k as bank is trading at low er valuat ion pr emium

com pariso n to peers despite of havin g soun d fundamental. We value bank

Rs.1578/share which is 1.1 times o f FY15sbook and 5.2 times o f FY15

earnings. Look ing atbanksmetric s lik e Tier1 cap ital of 13.2%, GNPA of 1.7

PCR at 92% mak e it stron g for trading at premium valu ation as com pare

peers group.

evious Target Price

arket Data

pside

SE Code 532209

wk Range H/L

hange from Previous

&k Bank Vs Nifty


21053

fty 6314

verage Daily Volume

6841

1695/1130

SE Symbol J&KBANK

kt Capital (Rs Cr)



ock Performance

At the end of 2QFY14, bank reported GNPA of 1.7% and in absolute basis, GNP

grew by mere 4% QoQ despite of current phase of economy cycle. Restructure loa

declined by 70 bps to 3.6% of loans whereas fresh restructure was low at 70 bps

loan. Provision coverage ratio declined by 250 bps QoQ to 89% (without technic

write-off) made net NPA to 0.2% from 0.1% in 1QFY14.

"HOLD"30th Dec, 2013



14/21

J&K BANK

Source: Eastwind/Company



aterly Result (Rs. Cr) 2QFY14 1QFY14 2QFY13 % YoY Gr % QoQ Gr

erest/discount on advances / bills 1244 1184 1061 17.3 5.0

ome on investments 396 423 417 -5.0 -6.3

erest on balances with Reserve Bank of India 10 17 23 -57.4 -42.8

hers 0 0 0

tal Interest Income 1650 1624 1501 9.9 1.6

hers Income 99 92 91 9.4 7.9

tal Income 1749 1716 1592 9.9 1.9

erest Expended 968 969 948 2.1 -0.1

682 655 553 23.4 4.1

her Income 99 92 91 9.4 7.9

tal Income 781 747 644 21.4 4.6

ployee 177 176 143 23.6 0.6

her Expenses 108 90 78 38.7 19.4

erating Expenses 285 266 221 28.9 7.0

P( Rs Cr) 496 481 423 17.5 3.2

ovisions 56 36 33 69.7 53.7

T 441 445 390 13.1 -0.9

x 138 137 120 14.8 1.0

t Profit 303 308 270 12.3 -1.7

ance Sheet Data ( Rs Cr)

t Worth 5475 5173 4609 18.8 5.9

posits 61171 58601 54927 11.4 4.4rrowings 1346 758 922 45.9 77.7

vances 41121 39282 34272 20.0 4.7

estment 22316 21734 22521 -0.9 2.7

set Qaulity ( Rs Cr)

PA 709 665 709 0.0 6.5

PA 78 56 78 0.0 38.2

PA(%) 1.7 1.7 2.1

PA(%) 0.2 0.1 0.2R(%) 89 92 89


15/21

J&K BANK

Source: eastwind/Company



L 2010 2011 2012 2013 2014E 2015Eerest/discount on advances / bills 2342 2630 3394 4318 4959 5703

ome on investments 705 1066 1403 1723 1892 2085

erest on balances with Reserve Bank of India 11 17 39 97 53 53

hers 0 0 0 0 0 0

tal Interest Income 3057 3713 4836 6137 6904 7841

hers Income 416 365 334 484 383 727

tal Income 3473 4078 5170 6621 7287 8568

erest on deposits 1841 2069 2902 3741 4217 4639

erest on RBI/Inter bank borrowings 83 46 41 26 91 111

hers 14 54 54 54 0 0

erest Expended 1938 2169 2997 3821 4308 4750

1119 1544 1838 2316 2595 3091

Growth(%) 37.9 19.1 26.0 12.1 19.1

her Income 416 365 334 484 383 727

tal Income 1536 1908 2172 2800 2979 3817

ployee 366 524 521 652 633 811

her Expenses 211 235 281 337 440 563

erating Expenses 577 759 802 989 1072 1374

P( Rs Cr) 958 1149 1370 1811 1906 2443

ovisions 446 534 567 756 779 965

t Profit 512 615 803 1055 1128 1478

t Profit Grwoth(%) 20.1 30.6 31.4 6.9 31.1

y Balance sheet data

posits 37237 44676 53347 64221 70643 77707

posits Growth(%) 20.0 19.4 20.4 10.0 10.0

rrowings 1100 1105 1241 1075 1230 1500

rrowings Growth(%) 0.4 12.3 -13.4 14.4 22.0

an 23057 26194 33077 39200 45080 51843

an Growth(%) 13.6 26.3 18.5 15.0 15.0

estments 13956 19696 21624 25741 20124 22178

estments Growth(%) 41.1 9.8 19.0 -21.8 10.2

stwind Calculation

ld on Advances 10.2 10.0 10.3 11.0 11.0 11.0

ld on Investments 5.0 5.4 6.5 9.4 9.4 9.4

ld on Funds 7.7 7.5 8.3 8.9 10.6 10.6

st of deposits 4.9 4.6 5.4 5.8 6.0 6.0

st of Borrowings 8.8 9.1 7.7 7.4 7.4 7.4

st of fund 5.1 4.7 5.5 5.9 6.0 6.0

luation

ok Value 621 718 844 1003 1186 1441

BV 1.1 1.2 1.1 1.3 1.2 1.0

E 6.4 6.9 5.5 5.9 6.1 4.6


16/21

57.25

6262

8

-

1M 1yr YTD

bsolute 19.2 20.4 20.4

el.to Nifty 15.6 13.1 13.1


omoters 18.5 18.5 18.5

I 11.4 11.4 11.1

I 14.1 12.5 13.0

hers 56.1 57.7 57.5

Financials Rs, Cr2011 2012 2013 2014E 2015E

NII 189 228 284 127 190

Total Income 301 328 401 272 334

PPP 86 84 126 95 127

Net Profit 21 55 102 95 127

EPS 1.1 2.3 4.1 3.8 5.1

DCB

hange from Previous

CB Vs Nifty


2158026

fty 6279

Developm ent Credit Bank (DCB) cur rent ly trading at 1.3 times o f one ye

forw ard book whic h is now alm ost of higher side of our valuat ion range. W

valu e the bank at Rs.62/sh are at the high er side whi ch is 1.4 tim es of one yeforw ard book and 15 times of FY14Esearnings. Present valuat ion mult ip

jus t if ied on account of DCBscon sis tent improv ement in its return rat io an

management guided simi lar t rend of growth in FY14,however bank ci te

marg in could be com press ed by 25-30 bps . We cantrule out the valuat io

mu ltip le exp ans ion s but there is need to watch 1-2 qu arters mo re as per o

view

verage Daily Volume

1437

evious Target Price

arket Data

pside

Well capitalized and stable asset quality

Bank is well capitalized with tier 1 ratio of 13% means no need to raise money

short term. Banksmanagement guided loan and deposits growth of 25-27% and 3

32% in FY14 which seen possible looking at present scenario. Management is al

very focus on low ticket size loan (prefer less than 30 mn) on account of avoidilarge slippage. At the 2QFY14, bank reported slippage of Rs.21 cr which was 1.3

in annualized basis. Fresh slippage ratio remains in the range of 1.1-1.5 times in la

few quarters, so we believe bank would maintain similar trend in term of fre

slippage which restrict GNPA out of control. Provision coverage ratio at the end

2QFY14 stood at 84% (without technical write off) and management reiterate PCR

maintain above of 80%.

kt Capital (Rs Cr)



Potential to expand valuation multiple, need to watch growth trajectory 1

quarters more

On valuation front, DCB valuation could be expanded if visibility of RO

improvement is clearly seen. ROE improvement could be possible in two front- firreducing cost income ratio which will boost the profit and second loan grow

specially in high yield segment like SME and MSME. We observed that banksCo

Income ratio was higher at 66.2% at the end of 2QFY14. Cost income ratio wou

reduce to less than 65% in FY14 and would further reduce to 60% in FY15 accordi

to management. To reduce the cost, bank initiated to invest high yield segme

planning to maintain CASA at 30% in long run while in short term does not expe

below of 27% and escalating branch network. In FY13 bank opened 10 branches b

in 1HFY14, DCB opened 9 branches and will go upto 120-125 branches in FY14.

54.85/38

ock Performance

ompany Update Book Profit

MP

arget Price

SE Code 532772

SE Symbol DCB

wk Range H/L

"Book Profit"27th Dec,2013



17/21

DCB

Source: Company/Eastwind



uarterly Result( Rs Cr) 2QFY14 1QFY14 2QFY13 % YoY % QoQ

erest/discount on advances / bills 205.2 201.5 170.9 20.1 1.8

come on investments 57.9 56.7 47.6 21.8 2.1

erest on balances with Reserve Bank of India 5.5 2.3 1.1 378.2 142.4

hers 0.2 0.2 0.4 -45.6 -9.7

tal Interest Income 268.8 260.7 219.9 22.2 3.1

hers Income 27.3 45.1 27.5 -0.9 -39.5

tal Income 296.1 305.8 247.5 19.6 -3.2

erest Expended 177.6 177.6 153.0 16.1 0.0

91.3 83.1 67.0 36.3 9.8

her Income 27.3 45.1 27.5 -0.9 -39.5

tal Income 118.5 128.2 94.5 25.5 -7.6

mployee 38.8 37.7 34.1 13.9 2.9

her Expenses 39.6 39.2 33.9 16.8 1.1

erating Expenses 78.4 76.9 68.0 15.4 2.0

P( Rs Cr) 40.1 51.3 26.5 51.4 -21.8

ovisions 7.0 8.5 4.4 60.8 -17.4

T 33.1 42.8 22.1 49.5 -22.7

x 0.0 0.0 0.0

t Profit 33.1 42.8 22.1 49.5 -22.7

lance Sheet (Rs Cr)

t Worth 1079 1046 902 19.6 3.2

posits 8788 8320 7137 23.1 5.6

an 6677 6472 5671 17.7 3.2

set quality (Rs Cr)

NPA 235 226 226 4.0 4.0

A 57 54 38 50.0 5.6

GNPA 3.5 3.5 4

NPA 0.9 0.8 0.7


18/21

DCB

Source: Eastwind/ Company



come Statement 2010 2011 2012 2013 2014E 2015E

terest Income 459 536 717 916 1090 1279

terest Expense 317 347 489 632 963 1089

I 142 189 228 284 127 190

hange (%) -28.2 33.6 20.4 24.9 -55.3 49.1

on Interest Income 107 112 100 117 145 145

otal Income 249 301 328 401 272 334

hange (%) -21.6 21.2 8.9 22.4 -32.3 23.0

perating Expenses 201 215 244 275 177 207

e Provision Profits 48 86 84 126 95 127

hange (%) -36.5 79.9 -2.6 50.5 -24.5 33.5

ovisions 121 57 29 24 0 0

BT -73 29 55 102 95 127

AT -79 21 55 102 95 127

hange (%) -10.1 -127.2 157.1 85.3 -6.7 33.5

alance Sheet

eposits( Rs Cr) 4787 5610 6336 8364 9618 11061

hange (%) 3 17 13 32 15 15

which CASA Dep 1693 1975 2035 2272 2597 1825

hange (%) 17 17 3 12 14 -30

orrowings( Rs Cr) 504 861 1123 1526 1697 1952

vestments( Rs Cr) 2018 2295 2518 3359 2886 3318

ans( Rs Cr) 3460 4271 5284 6586 7903 9484

hange (%) 6 23 24 25 20 20

atio

vg. Yield on loans 10.4 9.4 10.1 10.8 9.7 9.7

vg. Yield on Investments 4.7 5.8 6.9 5.8 6.8 6.8

vg. Cost of Deposit 5.9 5.2 6.4 6.4 5.9 5.9

vg. Cost of Borrowimgs 6.8 6.4 7.2 6.4 6.0 6.0

aluation

ook Value 30 31 36 40 44 49

MP 32.2 45.9 45 45 57.3 57.3BV 1.1 1.5 1.3 1.1 1.3 1.2


19/21

Infosys

How do we see the impacts of this buzz?

1M 1yr YTD

solute 4.1 52.1 27.2

l. to Nifty -0.3 44.9 23.3


omoters 16.04 16.04 16.04

40.52 40.55 39.42

17.51 18.7 18.33

hers 25.93 24.71 26.21

Financials2QFY14 1QFY14 (QoQ)-% 2QFY13 (YoY)-%

Revenue 12965 11267 15.07 9858 31.5

EBITDA 2836.9 2664 6.49 2597 9.2

PAT 2406.9 2374 1.39 2369 1.6

EBITDA Margin 21.9% 23.6% (170bps) 26.3% (440bps

PAT Margin 18.6% 21.1% (250bps) 24.0% (540bps

(b) V Balakrsihnansresignation is not one night decision and not an affect of intern

hiccups. Post declaration of his resignation V Balakrishnan stated to media itwas m

long term plan and we were waiting for SEBI approval for my new Private Equity firm

Even, he sold 1,00,000 shares in the company for Rs 33 crore in the open market on

Nov 2013 (50,000 shares each held by his daughters), it indicates its earlier decisio

Therefore, we think Balas exit is a part of an ongoing strategy to reshuffle the t

management at Infosys.

(c) The top management conundrum has not been new to Infosys. Even, as Infosy

hyper-growth story played out over the course of three decades, powered by not just

seven cofounders but also several talented employees that came on later on. Even, mo

of company founders have churned out and company has been working for growth sto

and committing for strategy 3.0.

are Holding Pattern-%

year forward P/E

Rs, Cro



(d) Post Narayana Murthy, company has committed for future transformational chang

and next generation growth plan. Recently, the company has undertaken a clear shift

direction where it has been focusing on higher-margin businesses, a strategy that riv

TCS that has successfully implemented.

For near term, there could be some small sort of rally on the stock because of this kn

jerk and as the December quarter is generally expected to be a bit tepid for t

technology sector. Although, the street will forget all things after a good quart

earnings or a strong commentary on the business outlook. For long term, we do n

see any major pressure because of cos poster boy exit.

Bala exit; a pros and cons?

MP 3486

rget Price 3622

ompany update BUY Does Balakrishnan departure from Infosys would affect the companys bread a

butter?

Last week, V Balakrishnan a former CFO and member of Board director resigned fro

the company to turn entrepreneur of Private Equity space. Currently, he is the headInfosys business process outsourcing unit, the company's core banking softwa

Finacle, its India business and chairman of Infosys Lodestone. This was now the

senior and top level departure after the taking charges by Company founder Naraya

Murthy.arket Data

ock Performance

160944

(a) We think, there would not be any major impact on qualitative and quantitative sen

and company would not see any major gap between sales executives and clients. Ythe magnitude of the exits could create a leadership vacuum. However, very so

company will try to turn into smoothie organization structure.

evious Target Price 3390side 4%

E Code 500209

kt Capital (Rs Crores)

erage Daily Volume 1240448

fty 6268

E Symbol INFY

ange from Previous 7%

Behind the top-level departure, only one cause reflects on the picture that is the tus

of CEO post. Current CEO Shibulal is going to complete its tenure by next yea

Among the front-runner of this post, Balakrishnan was strong contender for the po

of CEO race.

wk Range H/L 3570/2190

"BUY"26th Dec' 13



20/21

onsidering the revised guidance by management and its growth priority than margin

ching up strategy, we are positive on the stock. At a CMP of Rs 3486, it trades at 19.2x

Y14E and 16.7x FY15E earnings. We retain our BUY view on the stock with a target

ice of target price of Rs 3622.

Infos s.

iew and Valuation:fosys seems to be on its way to rediscovering its past mojo with revenue momentum

cking, its past strategy of under-promising and over delivering - remember present

idance now factors flat gorwth in next 2 qtrs, and the NRN invisible hand in play.

rther announcement of strategic acquisitions, better utilization of cash balances, ramp-

p in sales investment ,better deal win, consistent client traction and revenue

omentum would help the company to bridge the gap with rivals such as TCS and HCL

ch.


nancials



s in Cr, FY10 FY11 FY12 FY13 FY14E FY15E

ales, INR 22742 27501 33734 40352 48659.6 55939.

mployee Cost 12085 14856 18340 22565 27736.0 32165.

Other expenses 2792 3677 4671 6254 7785.5 9230.0

otal Expenses 14877 18533 23011 28819 35521.5 41395.

BITDA 7865 8968 10723 11533 13138.1 14544.

epreciation 905 854 928 1099 1325.3 1523.5

Other Income 982 1211 1904 2365 2433.0 3356.4

BIT 7942 9325 11699 12799 14245.8 16377.

nterest Cost 0 0 0 0 0.0 0.0

BT 7942 9325 11699 12799 14245.8 16377.

ax 1681 2490 3367 3370 3846.4 4421.8

AT 6261 6835 8332 9429 10399.4 11955.

rowth-%

ales 4.8% 20.9% 22.7% 19.6% 20.6% 15.0%

BITDA 9.3% 14.0% 19.6% 7.6% 13.9% 10.7%

AT 4.6% 9.2% 21.9% 13.2% 10.3% 15.0%

Margin -%

BITDA 34.6% 32.6% 31.8% 28.6% 27.0% 26.0%

BIT 34.9% 33.9% 34.7% 31.7% 29.3% 29.3%

AT 27.5% 24.9% 24.7% 23.4% 21.4% 21.4%

xpenses on Sales-%

mployee Cost 53.1% 54.0% 54.4% 55.9% 57.0% 57.5%

Other expenses 12.3% 13.4% 13.8% 15.5% 16.0% 16.5%

ax rate 21.2% 26.7% 28.8% 26.3% 27.0% 27.0%

aluation

MP 2615.1 2765.1 2865.0 2400.0 3486 3486

o of Share 57.4 57.4 57.4 57.4 57.4 57.4

W 23049.0 25976.0 31332.0 37994.0 45236.1 53832.

PS 109.1 119.0 145.1 164.2 181.1 208.2

VPS 401.7 452.4 545.6 661.7 787.8 937.5

oE-% 27.2% 26.3% 26.6% 24.8% 23.0% 22.2%

ividen Payout ratio 25.1% 45.9% 24.0% 45.1% 23.8% 20.7%

/BV 6.5 6.1 5.3 3.6 4.4 3.7

/E 24.0 23.2 19.7 14.6 19.2 16.7


21/21

Narnolia Securities Ltd

402, 4th floor 7/ 1, Lord s Sinha Road Kolkata 700071, Ph

033-32011233 Toll Free no : 1-800-345-4000

email: [email protected],website : www.narnolia.com

Risk Disclosure & Disclaimer: This report/message is for the personal information of

the authorized recipient and does not construe to be any investment, legal or taxation

advice to you. Narnolia Securities Ltd. (Hereinafter referred as NSL) is not soliciting any

action based upon it. This report/message is not for public distribution and has been

furnished to you solely for your information and should not be reproduced or

redistributed to any other person in any from. The report/message is based upon publicly

available information, findings of our research wing East wind& information that we

consider reliable, but we do not represent that it is accurate or complete and we do not

provide any express or implied warranty of any kind, and also these are subject to changewithout notice. The recipients of this report should rely on their own investigations,

should use their own judgment for taking any investment decisions keeping in mind that

past performance is not necessarily a guide to future performance & that the the value of

any investment or income are subject to market and other risks. Further it will be safe to

assume that NSL and /or its Group or associate Companies, their Directors, affiliates

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

otherwise in the recommended/mentioned securities/mutual funds/ model funds and

other investment products which may be added or disposed including & other mentioned

in this report/message.

reduced stock with price target of rs.66 of andhra bank’s - india equity analytics today

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