Economy News OCTOBER 28, 2014
Transcription
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 [email protected] +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 [email protected] +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 [email protected] +91 22 6621 6301 Saday Sinha Banking, NBFC, Economy [email protected] +91 22 6621 6312 Ritwik Rai FMCG, Media [email protected] +91 22 6621 6310 Jayesh Kumar Economy [email protected] +91 22 6652 9172 Sanjeev Zarbade Capital Goods, Engineering [email protected] +91 22 6621 6305 Arun Agarwal Auto & Auto Ancillary [email protected] +91 22 6621 6143 Sumit Pokharna Oil and Gas [email protected] +91 22 6621 6313 K. Kathirvelu Production [email protected] +91 22 6621 6311 Teena Virmani Construction, Cement [email protected] +91 22 6621 6302 Ruchir Khare Capital Goods, Engineering [email protected] +91 22 6621 6448 Amit Agarwal Logistics, Transportation [email protected] +91 22 6621 6222 Technical Research Team Shrikant Chouhan [email protected] +91 22 6621 6360 Amol Athawale [email protected] +91 20 6620 3350 Derivatives Research Team Sahaj Agrawal [email protected] +91 79 6607 2231 Rahul Sharma [email protected] +91 22 6621 6198 Malay Gandhi [email protected] +91 22 6621 6350 Prashanth Lalu [email protected] +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. 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