Economy News OCTOBER 28, 2014

OCTOBER 28, 2014
Economy News
Equity
 India is considering raising the import taxes on crude and refined
vegetable oils to protect local farmers and the refining industry, two
government sources said, as purchases by the world's top importer are
expected hit a record this year. (BS)
 India's GDP is likely to expand by 5.6% this fiscal as reforms gain
momentum and the growth is expected to accelerate as proposed
measures such as GST will give a boost to manufacturing sector, a World
Bank report said. (FE)
 The government will consider extending the incentives for raw sugar
exports after October 29 when leading cane growing states forecast their
sugar output for the new season beginning October, two sources said. (BS)
 The Supreme Court has refused to interfere with the Centre's decision to
de-control prices of 108 cardiac and diabetes drugs saying the issue can be
raised before the competent authority through representation. (ET)
Corporate News
1 Day 1 Mth 3 Mths
Indian Indices
SENSEX Index
NIFTY Index
BANKEX Index
BSET Index
BSETCG INDEX
BSEOIL INDEX
CNXMcap Index
BSESMCAP INDEX
26,753
7,992
18,949
10,102
15,246
10,642
11,475
10,643
(0.4)
(0.3)
0.5
(0.5)
0.7
(1.4)
(0.4)
(0.2)
0.5
0.3
6.1
(4.0)
6.0
(0.0)
1.6
1.3
2.9
3.1
8.8
2.8
(1.6)
(0.6)
6.7
6.8
World Indices
Dow Jones
Nasdaq
FTSE
NIKKEI
HANGSENG
16,818
4,486
6,363
15,389
23,143
0.1
0.0
(0.4)
0.6
(0.7)
(1.7)
(0.6)
(4.3)
(5.7)
(1.8)
(1.0)
0.9
(6.3)
(1.5)
(4.8)
Value traded (Rs cr)
 JSW Steel plans to raise capacity at its Bellary plant by 60% to 16 MMTPA
at an estimated investment Rs 300 Bn that will make the unit the largest
single-location steel facility. (ET)
 Vadodara-based Alembic Pharmaceuticals announced its entry into the
Algerian market by picking up 49 per cent equity in AdwiyaMami SARL
Algeria. (BS)
 Alstom announced that it has bagged a Euro 85 million order to supply 25
metro train systems for Kochi Metro Rail. The first train sets are likely to
be delivered by early 2016. (FC)
 Larsen and Toubro bags contract to build 'Statue of Unity' for Rs 29.8 Bn.
This huge construction work will be completed in four years. (ET)
 Travel firm Thomas Cook (India) has acquired
Brainhunter Systems Ltd for an undisclosed sum. (BS)
% Chg
27 Oct 14
Canada-based
 GAIL India Ltd is looking for a strategic partner for its Rs 31.08 Bn
floating LNG import terminal at Paradip in Odisha. (ET)
 Jindal Steel and Power Ltd said the CBI were investigating the granting
of a coal mining licence block to the company. (ET)
 Five trade unions that represent almost 90% of Coal India's (CIL)
workforce are likely to go on an indefinite strike from January in protest
against the government's "unilateral" decision to allot coal blocks to
private companies for commercial exploitation. (ET)
 Tata Power Company plans to complete work on a $1.8 bn thermal
power station in Vietnam three years early, government officials said, as
the two countries strive to showcase the economic ties between them.
(ET)
 The Union government named three prominent business persons and
their associates against whom it has started prosecution for allegedly
holding illegal bank accounts abroad. They include Pradip Burman of
Dabur group; Goa-based miner Timblo and its five directors, including
Radha S Timblo; and Rajkot-based realty and bullion trader Pankaj
Chimanlal Lodhya. (FC)
27 Oct 14
% Chg - Day
2,555
13,705
243,716
(0.4)
427.1
652.2
Cash BSE
Cash NSE
Derivatives
Net inflows (Rs cr)
23 Oct 14
% Chg
MTD
YTD
129
188
12
2
(3,458)
3,490
22,230
12,637
FII
Mutual Fund
FII open interest (Rs cr)
FII
FII
FII
FII
Index
Index
Stock
Stock
23 Oct 14
% Chg
15,643
72,255
45,580
2,916
8.6
(1.4)
1.3
0.1
Futures
Options
Futures
Options
Advances / Declines (BSE)
27 Oct 14
Advances
Declines
Unchanged
A
B
T
103
193
3
847
1,159
60
246
233
40
Total % total
1,196
1,585
103
Commodity
41
55
4
% Chg
27 Oct 14 1 Day 1 Mth 3 Mths
Crude (NYMEX) (US$/BBL) 80.6
Gold (US$/OZ)
1,229.7
Silver (US$/OZ)
17.2
(0.6)
(0.1)
(0.1)
(13.9)
1.3
(1.8)
(20.8)
(5.5)
(16.0)
Debt / forex market
27 Oct 14 1 Day 1 Mth 3 Mths
10 yr G-Sec yield %
Re/US$
8.3
61.3
8.4
61.3
8.4
61.5
8.7
60.1
Sensex
27,500
25,500
23,500
21,500
Source: ET = Economic Times, BS = Business Standard, FE = Financial Express,
BL = Business Line, ToI: Times of India, BSE = Bombay Stock Exchange
19,500
O ct-13
Jan-14
Apr-14
Jul-1 4
O ct-14
MORNING INSIGHT
October 28, 2014
KAJARIA CERAMICS LTD
RESULT UPDATE
Teena Virmani
teena.virmani@kotak.com
+91 22 6621 6302
PRICE: RS.610
TARGET PRICE: RS.648
RECOMMENDATION: ACCUMULATE
FY16E P/E: 21.5X
Revenues for Q2FY15 were in line with our estimates and were led by
improvement in volumes and realization. Operating margins, though
improved on yearly basis but were down sequentially due to higher raw
material cost as well as other expenditure. Net profit performance was thus
boosted by improvement in revenues but came slightly lower than our
estimates. We continue to remain positive on the company on account of
expected increase in volumes going forward. We believe that stock will
continue to trade at higher valuations on account of excellent earnings
visibility on volume expansion and margin improvement coupled with
demand revival. We maintain our estimates and value the company at 23x P/
E with a price target of Rs 648 on FY16 estimates. However due to limited
upside from the current levels, we maintain ACCUMULATE on the stock and
would advise investors to buy the stock on declines.
Summary table
(Rs mn)
Consolidated Financial highlights
FY14
FY15E
FY16E
(Rs mn)
Sales
18,400
Growth (%)
14.0
EBITDA
2,807
EBITDA margin (%) 15.3
PBT
1,992
Net profit
1,242
EPS(Rs)
16.4
Growth(%)
16.0
CEPS(Rs)
22.7
BVPS(Rs)
70.1
DPS (Rs)
3.5
ROE (%)
27.9
ROCE (%)
29.1
Net debt
1,877
NW capital (Days)
47.7
P/E (x)
37.1
P/BV (x)
8.7
EV/Sales (x)
2.6
EV/EBITDA (x)
17.2
21,995
20.0
3,409
15.5
2,515
1,649
20.8
26.0
28.3
92.7
3.5
26.0
29.3
1,339
45.0
29.4
6.6
2.3
14.6
26,373
20.0
4,272
16.2
3,400
2,254
28.4
37.0
36.6
117.0
3.5
27.0
32.0
422
45.0
21.5
5.2
1.9
11.4
Net Sales
Source: Company, Kotak Securities - Private
Client Research
Q2FY15
Q2FY14
YoY (%)
5377.0
4781.0
12.5
4598.4
4127.6
11.4
(Increase) / Decrease In Stocks
-217.6
-16.9
1087.2
Total Expenditure
Cost of Services & Raw Materials
1308.2
As % of sales
24.3%
22.7%
Purchase of Finished Goods
1223.5
1164.2
As % of sales
22.8%
24.4%
622.8
454.3
Operating & Manufacturing Expenses
As % of sales
11.6%
9.5%
Electricity, Power & Fuel Cost
1159.1
1011.3
As % of sales
21.6%
21.2%
Employee Cost
502.4
427.5
As % of sales
9.3%
8.9%
EBITDA
778.6
653.4
EBITDA %
14.5%
13.7%
Depreciation
EBIT
Interest
EBT(exc other income)
Other Income
135.4
117.4
643.2
536.0
84.1
114.0
559.1
422.0
48.8
22.1
PBT
607.9
444.1
Tax
192.9
152.5
Tax%
31.7%
34.3%
PAT
415.0
291.6
17.5
22.4
Consolidated Net Profit
397.5
269.2
NPM%
7.4%
5.6%
Equity Capital
151.2
147.2
Minority Interest
Face Value (In Rs)
2.00
2.00
Basic EPS before Extraordinary Items
5.26
3.66
19.2
20.0
32.5
36.9
42.3
47.7
43.8
Source: Company
Kotak Securities Limited has two independent equity research groups: Institutional Equities and Private Client Group. This report has been prepared by the Private Client Group. The views and opinions expressed in this document may or may not match or may be contrary with the views,
estimates, rating, target price of the Institutional Equities Research Group of Kotak Securities Limited.
Kotak Securities - Private Client Research
Please see the disclaimer on the last page
For Private Circulation
2
MORNING INSIGHT
October 28, 2014
Revenue growth in line with our estimates
Consolidated revenues reported a growth of 12.5% YoY led by 7% YoY improvement in volumes and 8.3% YoY improvement in average tile realizations. Sales from
own production increased by 18% YoY while sales from JVs improved by 20% YoY
with production ramp up. Proportion of sales from imports has gone up by 5.9% YoY
mainly led by volume improvement as average realizations in imports category have
declined.
Sales break up (Mn sq m)
16
3.02
12
8
4
Imports/outsourced
2.58
3.77
3.69
7.51
7.08
Q2FY15
Q2FY14
JV
Own manufacturing
0
Source: Company
Revenues (Rs mn)
6000
Imports/outsourced
1038.7
4500
980.4
JV
1250.5
Own manufacturing
1504.9
3000
1500
2833.4
2402.3
Q2FY15
Q2FY14
0
Source: Company
Average realizations from own production improved to Rs 377 per sq m, up 11.2%
YoY and realizations from JV plants improved to Rs 399 per sq m, up 18% YoY.
Capacity utilizations have also started improving from its plants with Soriso Ceramic
plant operating at 96% during Q2FY15, Jaxx vitrified, Cosa ceramics and Vennar
Ceramics operating at full capacity during Q2FY15. Company's capacity expansion
of 4.5Msm in Jaxx vitrified has commenced from 6th Sep,14 while expansion of
3MSM at Cosa ceramics has commenced from 29th Sep,14. Kajaria has also increased its stake in Jaxx Vitrified from 51% to 61% in Jun,14.
Kajaria Ceramics had acquired 51% stake in Taurus Tiles Pvt. Ltd. during Q1FY15. It
is putting up a 5 MSM polished vitrified tile capacity at Morbi (Gujarat). The production is expected to commence by December 2014.
Its foray into Sanitaryware division has also started production from Apr,14 and full
production is expected to start from Q4FY15. The Company has initiated putting up
a faucet plant of 1.50 million pieces facility at Gailpur (Rajasthan) at a cost of Rs.
500 mn. The civil work is in progress. The project is expected to commence operation in Q1FY16.
Kotak Securities - Private Client Research
Please see the disclaimer on the last page
For Private Circulation
3
MORNING INSIGHT
October 28, 2014
Thus, going forward, we expect the capacity expansion of the company to come
from 4.5MSM in Jaxx vitrified, 3 MSM in Cosa Ceramics, 5MSM from Taurus Tiles
during FY15. Company has also approved expansion of ceramic tiles capacity by
3MSM at Gailpur, Rajasthan and greenfield expansion of 5MSM in polished vitrified
tile at Rajasthan which is likely to aid volume growth from FY16 onwards. We maintain our estimates and expect revenues to grow at a CAGR of 20% between FY1416.
Operating margins came lower than estimates
Operating margins for the quarter stood at 14.5% as against 13.7% in Q1FY14 and
15.9% in Q1FY15. Yearly improvement in margins was mainly led by improvement
in tile realizations and more value added products in the sales. We expect margins
to be around 15.5% for FY15 and expect it to improve in FY16 to 16.2% due to
addition of more value added products.
Net profit performance impacted by lower than expected margins
Consolidated net profit growth stood at 47.7% YoY for the quarter and was led by
improvement in volumes and realizations and decline in interest outgo. We maintain
our estimates and expect net profits to grow at a CAGR of 34.3% between FY14-16.
We maintain ACCUMULATE
rating on Kajaria Ceramics with
a price target of Rs.648
Valuation and recommendation
Stock is currently trading at attractive valuations of 29.4x and 21.5x P/E on FY15 and
FY16 estimates. We maintain our estimates and value the company at 23x P/E with
a price target of Rs 648 on FY16 estimates. Owing to limited upside from current
levels, we maintain ACCUMULATE rating on the company and would advise investors to use declines to enter the stock with a long term.
Key risk to our recommendation would come from sharp hike in gas prices or rupee
depreciation or demand slowdown.
Kotak Securities - Private Client Research
Please see the disclaimer on the last page
For Private Circulation
4
MORNING INSIGHT
October 28, 2014
HINDUSTAN UNILEVER LTD
RESULT UPDATE
Ritwik Rai
ritwik.rai@kotak.com
+91 22 6621 6310
PRICE: RS.720
TARGET PRICE: RS.759
RECOMMENDATION: ACCUMULATE
FY16E P/E: 34.2X
Hindustan Unilever's 2QFY15 results missed estimates on account of phaseout of excise duties and miss on gross margins (higher consumption costs;
benefits of lower raw material prices likely in coming quarters). The
company's volume performance remains robust considering weakness in the
industry, and the company remains broadly on track to achieve our
estimates on an annual basis (we tweak our estimates1% down) , as gross
margins expand 2HFY15 onward. We continue to see HUL as an
outperformer within our coverage universe (valuations less demanding than
MNC peers); however, upside remains modest on our target price of Rs 759
(revised upward from Rs 746), and we would prefer to buy the stock on
declines. ACCUMULATE.
Results Summary
Rsmn, FY Ends Mar
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
% chg. y/y
% chg. q/q
Net Sales from Operations
68,926
72,234
70,941
77,163
76,393
10.8
-1.0
- Domestic/ HPC
52,420
55,749
54,072
59,130
58,005
10.7
-1.9
- Domestic/ Foods
12,175
11,996
12,751
13,652
13,322
9.4
-2.4
64,595
67,745
66,822
72,782
71,327
10.4
-2.0
2,877
2,633
2,536
2,926
3,329
15.7
13.8
1,454
1,856
1,583
1,456
1,738
19.5
19.4
- Domestic Sales/ Total
-Others
Other Operating Income
Expenses
58,073
59,966
60,166
63,998
63,973
10.2
0.0
34,699
36,601
37,308
39,896
39,590
14.1
-0.8
- Personnel Expenses
3,683
3,477
3,783
3,357
4,130
12.1
23.0
- A&P Expenses
9,540
9,295
8,403
9,449
9,251
-3.0
-2.1
- Raw Materials
- Other Expenses
10,151
10,593
10,671
11,296
11,003
8.4
-2.6
10,853
12,268
10,776
13,165
12,420
14.4
-5.7
Margin (%)
15.7
17.0
15.2
17.1
16.3
0.5ppt
-0.8ppt
Depreciation and Amortization
639
644
658
667
764
19.5
14.5
10,214
11,624
10,118
12,498
11,657
14.1%
-6.7
14.8
16.1
14.3
16.2
15.3
0.4ppt
-0.9ppt
1,510
1,427
1,506
2,021
1,978
31.0
-2.1
63
182
53
63
63
0.8
1.3
11,661
12,868
11,571
14,457
13,571
16.4
-6.1
334
230
660
396
487
45.6
22.8
11,995
13,098
12,231
14,853
14,058
17.2
-5.4
2,857
2,475
3,510
4,285
4,176
46.2
-2.5
9,138
10,623
8,721
10,569
9,882
8.1
-6.5
EBITDA
EBIT
Margin (%)
Other Income
Interest Expenses
Profit bef. Exceptional Items &Tax
Exceptional Items
PBT
Prov. For Tax
PAT
Source: Company Reports
 Hindustan Unilever's 2QFY15 results disappointed on the topline as well as bottom-line. Phasing out of excise duties has had an impact on our top-line assumptions, while bottom line disappointments relate with misses on gross margins
(higher consumption costs than expected).
 HUL reported 5% underlying volume growth in the quarter, in line with expectations. However, the company's reported net sales was 1.5% below our expectations, as higher excise duties cut into sales. The company's presentation clarifies
that excise duty phase-outs have had a 90 bps impact on net sales.
Kotak Securities Limited has two independent equity research groups: Institutional Equities and Private Client Group. This report has been prepared by the Private Client Group. The views and opinions expressed in this document may or may not match or may be contrary with the views,
estimates, rating, target price of the Institutional Equities Research Group of Kotak Securities Limited.
Kotak Securities - Private Client Research
Please see the disclaimer on the last page
For Private Circulation
5
MORNING INSIGHT
October 28, 2014
Summary table
(Rs mn)
FY14
FY15E
FY16E
Sales
274,083 305,989 343,584
Growth (%)
8.7
11.6
12.3
EBITDA
44,753 51,880 59,482
EBITDA margin (%) 16.3
17.0
17.3
PBT
48,003 55,383 64,123
Adj. PAT
36,394 39,423 45,583
Adj. EPS (Rs)
16.8
18.2
21.1
Growth (%)
9.8
8.3
15.6
CEPS (Rs)
18.0
19.6
22.5
BV (Rs/share)
15.2
17.1
21.3
Dividend / share (Rs) 13.0
14.0
14.5
ROE (%)
122.4
113.1
109.7
ROCE (%)
122.1
113.2
110.3
Net cash (debt)
25,197 32,830 43,537
NW Capital (Days)
-59
-59
-56
P/E (x)
42.8
39.5
34.2
P/BV (x)
47.6
42.1
33.8
EV/Sales (x)
5.6
5.0
4.4
EV/EBITDA (x)
34.2
29.4
25.5
Source: Company, Kotak Securities - Private
Client Research
 FMCG industry sales growth in the quarter came in at 4%, while industry volume
growth was negative, as per management.
 Further to the miss on the topline, HUL's gross margins disappointed with a 1.6
ppt decline. The management has attributed the decline in gross margins to
higher consumption costs as well as higher excise duties (30 bps impact).
 Advertising and promotion spends of the company witnessed a 3% y/y decline,
helping EBITDA margin to the extent of 1.7 ppt (y/y). Even so, the company's
reported margins have missed our estimates by 0.9 ppt. Reported EBITDA has
come in 6.5% below our estimates. The company believes that A&P spends in
the quarter were competitive.
 Depreciation and amortization expenses of the company, adjusted upward in
response to changes in the Companies' Act, have furthered the miss on operating profit. However, HUL's other income came in well ahead of expectations. As
a result, growth in PAT before exceptional items, 8%, has missed estimates by
6%.
Segment Financials
2QFY14 3QFY14 4QFY14 1QFY15 2QFY15
% y/y
% q/q
Segment Revenues, Rs mn
Soaps and Detergents
33,808
33,979
34,971
38,476
37,551
11.1
-2.4
Personal Products
19,503
23,039
19,833
21,596
21,427
9.9
-0.8
8,354
8,500
8,690
8,366
8,991
7.6
7.5
Beverages
Packaged Foods
3,980
3,728
4,197
5,438
4,513
13.4
-17.0
Others
3,049
2,766
2,958
3,029
3,618
18.7
19.4
Segment Profits, Rsmn
Soaps and Detergents
4,739
4,509
4,217
5,318
5,112
7.9
-3.9
Personal Products
4,449
6,592
4,958
5,967
5,223
17.4
-12.5
Beverages
1,417
1,373
1,630
1,363
1,557
9.9
14.3
133
-134
230
591
200
50.1
-66.2
46
-135
-251
-155
116
150.4
-174.9
Soaps and Detergents
14.0
13.3
12.1
13.8
13.6% -0.4ppt -0.2ppt
Personal Products
22.8
28.6
25.0
27.6
24.4%
1.6ppt -3.3ppt
Beverages
17.0
16.2
18.8
16.3
17.3%
0.4ppt
Packaged Foods
3.3
-3.6
5.5
10.9
4.4%
1.1ppt -6.4ppt
Others
1.5
-4.9
-8.5
-5.1
3.2%
1.7ppt
Packaged Foods
Others
Margins (%)
1.0ppt
8.3ppt
Source: Company Reports
 Soaps and detergents as well as personal products segment barely managed
double - digit revenue growth in the quarter. Management has indicated that
revenue growth in the personal products segment was affected by high base of
Pepsodent re-launch. Also, sales of Vaseline have been impacted by high base of
last year (early winter sell-in).The release says that the company continued to
register double-digit growth in key brands in Skin Care, Hair Care, and Color
Cosmetics. Excise duty phase-outs have largely impacted personal products segment, and the sales in the personal products segment need to be viewed in that
perspective, as per management.
 Sales growth in the soaps and detergent space was largely price-led, while sales
growth in the personal products segment was largely volume-led.
 Margins in the soaps and detergents segment declined 40 bps. While margins in
personal products segment have expanded 1.6 ppt, we note that this is against a
fairly easy base of 2QFY14.
Kotak Securities - Private Client Research
Please see the disclaimer on the last page
For Private Circulation
6
MORNING INSIGHT
October 28, 2014
Outlook and Investment View
 HUL management has indicated that the operating environment remains challenging with low market growth across categories.
 In these circumstances, and considering impact of excise duties, higher base in
several categories, we believe that HUL's topline performance remains strong
relative to the industry.
 HUL will likely begin to reap benefits of lower commodity prices from 3QFY15
onwards, which will provide a fresh lever of growth in operating profits.
 The company has indicated that it would be able to manage margin expansion,
even with rising excise duties, going forward.
 We tweak our estimates modestly to factor in lower topline growth on account
of higher excise duties, and favourable commodity prices going forward. The net
impact on our FY15/FY16 estimates is 1% downward revision.
Raw Material Prices Softening Towards Quarter - End
Source: Company Reports
We maintain ACCUMULATE
rating on Hindustan
Unilever Ltd with a price
target of Rs.759
 While HUL's valuations are expensive relative to history, high valuations of other
MNC FMCG continue to be even more demanding. Further, we believe that ITC
is likely to see stagnation in valuations on account of regulatory overhangs. On
these counts, we think that HUL remains well-placed to see sustenance and perhaps, strengthening of re-rating that the stock has witnessed.
 As such, while we would prefer HUL to other MNC FMCG companies in our
coverage universe, we would look to buy the stock into declines. Maintain ACCUMULATE, with a price target of Rs 759 (revised upward from Rs 746), or
36XFY16E PER.
Kotak Securities - Private Client Research
Please see the disclaimer on the last page
For Private Circulation
7
MORNING INSIGHT
Bulk deals
October 28, 2014
Trade details of bulk deals
Date
Scrip name
Name of client
Buy/
Sell
Quantity
of shares
Avg.
price
(Rs)
27-Oct
Adcc
27-Oct
Adcc
Swapnil Shivkumar Agrawal
B
84,000
50.3
Hem Sec Ltd
B
96,000
50.3
27-Oct
Adcc
Prateek Jain
B
150,000
50.3
27-Oct
Adcc
Hem Chand Jain
B
366,000
50.3
27-Oct
Frshtrp
Kokan Shuhabuddin Shahnaz
B
100,000
70.1
27-Oct
Hindbio
Sivaji Raju Chintalapati
B
81,009
1.9
27-Oct
Hindbio
Raj Kumar Pasricha
S
81,000
1.9
27-Oct
Hindhard
Hasina Kasambhai Shekh
S
12,427
163.1
27-Oct
Hindhard
Kasambhai Umarbhai Shekh
S
15,328
163.7
27-Oct
Iflpromot
Ankita Ashok Parasrampuria
B
300,000
4.0
27-Oct
Iflpromot
Yogesh Nandkishor Sharma HUF
B
350,000
4.0
27-Oct
Iflpromot
Samir Kishor Thakkar
S
650,000
4.0
27-Oct
Invicta
Europlus One Reality Pvt Ltd
B
25,000
4.5
27-Oct
Invicta
Euro Plus Capital Ltd
B
39,354
4.7
4.5
27-Oct
Invicta
Rt Super Technologies Pvt Ltd
B
25,000
27-Oct
Jayamel
Kreative Finsol Pvt Ltd
S
335,023
4.1
27-Oct
Piondist
Rajasthan Global Securities Ltd
B
99,103
29.8
27-Oct
Powerhouse
Siddharth Prakash Bihani
S
96,000
30.0
27-Oct
Powerhouse
Rachana Suresh Chokhani
B
96,000
30.0
27-Oct
Rajgases
Ravi Omprakash Agrawal
B
101,169
10.0
27-Oct
Rajgases
Uma . Danwar
S
40,000
10.0
27-Oct
Rajgases
Manoj Danwar
S
45,000
10.0
27-Oct
Seche
Silvercade Trading Pvt Ltd
S
534,500
8.0
27-Oct
Smstech
Sunil S Dadha
S
1,793,540
0.1
27-Oct
Tirin
Ketan Fatehchand
S
40,000
47.6
27-Oct
Tirin
Model Commercial Pvt Ltd
B
30,000
47.6
27-Oct
Vgcl
Hem Sec Ltd
B
204,000
19.3
27-Oct
Vgcl
Hem Chand Jain
B
324,000
19.3
Source: BSE
Gainers & Losers
Nifty Gainers & Losers
Price (Rs)
chg (%)
Index points
Volume (mn)
10.0
Gainers
BHEL
Kotak Mahindra
Indusind Bank
253
5.1
NA
1,085
2.2
NA
1.0
697
1.9
NA
1.2
Losers
Jindal Steel
153
(8.0)
NA
8.6
DLF Ltd
111
(7.9)
NA
20.8
Hindustan Unilever
720
(5.1)
NA
3.0
Source: Bloomberg
Kotak Securities - Private Client Research
Please see the disclaimer on the last page
For Private Circulation
8
MORNING INSIGHT
Forthcoming events
October 28, 2014
Company/Market
Date
Event
28-Oct
ABB, ING Vysya Bank, Jubilant, Lupin, Mangalam Cement, Nestle India, Ranbaxy,
SRF, Times Guarantee earnings expected
29-Oct
Concor, Dish TV, Dr Reddy, Elgi Equipment, Emami, Excel Crop, Grasim, Mphasis,
Orient Bank, Raymond, R Systems, SBT, Sesa Sterlite, Tata Elxsi, TCI Finance,
Tech Mahindra, Thomas Cook earnings expected
30-Oct
ACC, Alahabad Bank, Ambuja Cement, Andhra Bank, Balaji Tele, Bharti Airtel,
Castrol India, Ceat, Century Ply, EI Hotel, Glenmark, HCC, ICICI Bank, IDFC, IOB,
Jubilant Food, Maruti Suzuki, Onmobile earnings expected
31-Oct
Asian Tiles, Batliboi, Binny Mills, Cetury Enka, Century Tex, EIHA Hotels, Excel Ind,
GAIL, GDL, IDBI, ITC, JK Paper, KEC, Kirloskar Bros, Karnataka Bank, Lanco Ind,
M&M, Nippo Battery, NMDC, NTPC, PFC, Phoenix, PVR, Sundaram Finance,
Suzlon, TCI, Union Bank, Whirlpool earnings expected
Source: Bloomberg
Kotak Securities - Private Client Research
Please see the disclaimer on the last page
For Private Circulation
9
MORNING INSIGHT
October 28, 2014
Fundamental Research Team
Dipen Shah
IT
dipen.shah@kotak.com
+91 22 6621 6301
Saday Sinha
Banking, NBFC, Economy
saday.sinha@kotak.com
+91 22 6621 6312
Ritwik Rai
FMCG, Media
ritwik.rai@kotak.com
+91 22 6621 6310
Jayesh Kumar
Economy
kumar.jayesh@kotak.com
+91 22 6652 9172
Sanjeev Zarbade
Capital Goods, Engineering
sanjeev.zarbade@kotak.com
+91 22 6621 6305
Arun Agarwal
Auto & Auto Ancillary
arun.agarwal@kotak.com
+91 22 6621 6143
Sumit Pokharna
Oil and Gas
sumit.pokharna@kotak.com
+91 22 6621 6313
K. Kathirvelu
Production
k.kathirvelu@kotak.com
+91 22 6621 6311
Teena Virmani
Construction, Cement
teena.virmani@kotak.com
+91 22 6621 6302
Ruchir Khare
Capital Goods, Engineering
ruchir.khare@kotak.com
+91 22 6621 6448
Amit Agarwal
Logistics, Transportation
agarwal.amit@kotak.com
+91 22 6621 6222
Technical Research Team
Shrikant Chouhan
shrikant.chouhan@kotak.com
+91 22 6621 6360
Amol Athawale
amol.athawale@kotak.com
+91 20 6620 3350
Derivatives Research Team
Sahaj Agrawal
sahaj.agrawal@kotak.com
+91 79 6607 2231
Rahul Sharma
sharma.rahul@kotak.com
+91 22 6621 6198
Malay Gandhi
malay.gandhi@kotak.com
+91 22 6621 6350
Prashanth Lalu
prashanth.lalu@kotak.com
+91 22 6621 6110
Disclaimer
This document is not for public distribution and has been furnished to you solely for your information and must not be reproduced or redistributed to any other
person. Persons into whose possession this document may come are required to observe these restrictions.
This material is for the personal information of the authorized recipient, and we are not soliciting any action based upon it. This report is not to be construed
as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It is for the
general information of clients of Kotak Securities Ltd. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients.
We have reviewed the report, and in so far as it includes current or historical information, it is believed to be reliable though its accuracy or completeness
cannot be guaranteed. Neither Kotak Securities Limited, nor any person connected with it, accepts any liability arising from the use of this document. The
recipients of this material should rely on their own investigations and take their own professional advice. Price and value of the investments referred to in
this material may go up or down. Past performance is not a guide for future performance. Certain transactions -including those involving futures, options and
other derivatives as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. Reports based on technical
analysis centers on studying charts of a stock’s price movement and trading volume, as opposed to focusing on a company’s fundamentals and as such, may
not match with a report on a company’s fundamentals.
Opinions expressed are our current opinions as of the date appearing on this material only. While we endeavor to update on a reasonable basis the information
discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. Prospective investors and others are cautioned
that any forward-looking statements are not predictions and may be subject to change without notice. Our proprietary trading and investment businesses may
make investment decisions that are inconsistent with the recommendations expressed herein.
Kotak Securities Limited has two independent equity research groups: Institutional Equities and Private Client Group. This report has been
prepared by the Private Client Group . The views and opinions expressed in this document may or may not match or may be contrary with the
views, estimates, rating, target price of the Institutional Equities Research Group of Kotak Securities Limited.
We and our affiliates, officers, directors, and employees world wide may: (a) from time to time, have long or short positions in, and buy or sell the securities
thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or
act as a market maker in the financial instruments of the company (ies) discussed herein or act as advisor or lender / borrower to such company (ies) or have
other potential conflict of interest with respect to any recommendation and related information and opinions.
The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or
companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or
views expressed in this report.
No part of this material may be duplicated in any form and/or redistributed without Kotak Securities’ prior written consent.
Our research should not be considered as an advertisement or advice, professional or otherwise. The investor is requested to take into consideration all the
risk factors including their financial condition, suitability to risk return profile and the like and take professional advice before investing.
Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051, Telephone No.: +22 43360000, Fax No.: +22 67132430. Website: www.kotak.com. Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K
Vaidya Marg, Malad (East), Mumbai 400097. Telephone No: 66056825. SEBI Registration No: NSE INB/INF/INE 230808130, BSE INB 010808153/INF 011133230, OTC
INB 200808136, MCXSX INE 260808130/INB 260808135/INF 260808135, AMFI ARN 0164 and PMS INP000000258. NSDL: IN-DP-NSDL-23-97. CDSL: IN-DP-CDSL-1582001. Investments in securities are subject to market risk; please read the SEBI prescribed Combined Risk Disclosure Document prior to investing. Derivatives
are a sophisticated investment device. The investor is requested to take into consideration all the risk factors before actually trading in derivative contracts.
Compliance Officer Details: Mr. Sandeep Chordia. Call: 022 - 6605 6825, or Email: ks.compliance@kotak.com. In case you require any clarification or have any
concern, kindly write to us at below email ids: "For Trading Account Related queries: service.securities@kotak.com; "For Demat Account related queries:
ks.demat@kotak.com. Alternatively, you may feel free to contact our customer service desk at our toll free numbers 18002099191 or 1800222299. You may
also call at 30305757 by using your city STD code as a prefix. In case you wish to escalate your concern / query, please write to us at ks.escalation@kotak.com
and if you feel you are still unheard, write to our customer service HOD at ks.servicehead@kotak.com.
Kotak Securities - Private Client Research
Please see the disclaimer on the last page
For Private Circulation
10