india equity analytics today:buy stock of tata steel ltd, v-guard industries ltd and infosys

8/12/2019 India Equity Analytics Today:Buy Stock of Tata Steel Ltd, V-Guard Industries Ltd and Infosys

1/21

"BOOK PROFIT" 14th Mar 2014

Recent rally in Axis Bank is fundamentally not justified but is the result of sentiment boost up lead by Modi effect. Opinion poll suggests BJP le

NDA would come to power after the general election. NDA prime ministerial candidate Narendra Modi is perceived by foreign investor as

decisive and development making leader. Market participates have hope for revival in economy and business growth opportunity to start agai

This would be result of diminishing NPA buffer and profitability boost up. We advice our clients to book part profi

....................................................................................... Pa e : 2- 4

"BUY" 14th Mar 2014

HCLTECH :"Retain confidence" "BUY" 12th Mar 2014

On performance front, it continues to be bullish on the rebid market and bullish on short-term to medium term, momentum on deals pipelin

also looking robust. Considering the increasing discretionary spends across the geographies like US and Europe, we expect healthy earning

performance ahead. ...................................................................... ( Page : 16- 17 )

On fundamental wise, we are not very impressed with bank but in recent market rally, PSB as well as private banks participated more than an

sector likely due to outcome of exit poll for the coming election. We believe bank would rally more because of trading at lower side despite o

index is running at all time high. But with this fundamental Bank of Baroda would trade in range of Rs.635 to Rs.700 depending upon sentimen

as per our view. .................................................................... ( Page : 18-20)

TATA STEEL Ltd :

At current market capitalization of Rs. 23444 Crores, the stock is trading at a forward P/B of just 0.9. Tata Steel is a blue chip stock and

available at a very cheap valuation. But if we look at its historical stock performance, in the past three years it had continued to trade betwee

0.6 to 1.9 P/B range.With the European crisis behind us, US economy getting stronger and better outlook for Indian economy on the expectatio

of stable government at the Center, We feel Tata Steel share price may have some more price appreciation left given the improvement i

financial performance and Outlook. We recommend Buy on the stock at a medium term target price of Rs.40

-

Addressing an Investor Con Call, Infosys management has expressed its cautious view on earnings outlook as well as clients spending for nea

term. They indicated that FY14E would be a year of lower earnings than NASSCOM guidance followed by FY13 and FY12. The companyskne

jerk has not associated with single factor; these are partly company specific and partly external factor

.......................................................................................................... Pa e : 5 - 6

BANKBARODA "BUY" 11th Mar 2014

Shakti Pumps (India) Ltd : "Turnarround Counter" "BUY" 13th Mar 2014

The company was the first to get 5 star rating for energy efficiency for its products from BEE. In addition to submersible pumps, company als

producing Vertical Multistage Centrifugal pumps, Pressure booster pumps, Open well pumps, End suction pumps etc. Recently compan

introduced pumps working with solar power. In next three years company incline to achieve sale revenue of Rs. 600 crore with the net margin o

9-10%. Company is planning to increase the Branch Network to 30 and Dealer network to 3 fold in coming few year. Further, Company hav

plans to register our presence in all BRICS, G20 and European Union and in other growing countries in coming years. On valuation front shakt

pump is available at a single digit PE and EV/EBIDTA of 5.6x/4.1x and 4.7x/3.8x of its FY14E/15E estimates. In a volatile market, a compan

available at single digit valuations certainly looks up for grabs .................................................................... ( Page : 13-15)

IEA-Equity

Strategy

14th Mar, 20

Edition : 225

V-Guard Industries Ltd: "Colling Gun..." "BUY" 14th Mar 2014

On recent interview management expect a sales growth of around 10% in 4QFY14 on back of strong sales growth of 12-12.5% in January anFebruary month of 2014. Last financial year for Q4 company had very low margins because of two reasons, higher ad spend and one-off items

As Vguard product portfolio consist of 65-70% summer facing in nature and we believe that the strong summer expectation in 2014 and lo

base of FY14 would lead a revenue growth of at least 18% in FY14E. ....................................................................... ( Page : 7-9)

Infosys: "Recovery delayed, but not denied" "BUY" 14th Mar 2014

AXIS BANK :

Narnolia Securities Ltd,

India Equity Analytics aily Fundamental Report on Indian Equities


2/21

AXIS BANK

1385

1340

1220

-310

1M 1yr YTD

bsolute 25.2 -1.9 -1.9

el.to Nifty 17.9 -11.1 -11.1

omoters 33.9 33.9 33.9

I 43.2 43.4 40.7

I 9.7 4.9 8.8

hers 13.2 17.8 16.6

Financials Rs, Cr

2011 2012 2013 2014E 2015E

NII 6566 8026 9666 12224 14775

Total Income 11238 13513 16217 19146 21697

PPP 6377 7413 9303 11206 12367

Net Profit 3340 4224 5179 5826 6934

EPS 81.4 102.2 110.7 124.2 148.2

fty 6493

kt Capital (Rs Cr)

(Source: Company/Eastwind)

ock Performance

verage Daily Volume

arget Price

evious Target Price

psidehange from Previous

xis Bank Vs Nifty

hare Holding Pattern-%

26.18 cr

532215

SE Symbol

Axis bankslow cost deposits CASA has grown faster than peers like ICICI ba

and is stable at 43% at the end of 3QFY14. Banksmanagement expects it to rea

at 46% in FY15E which would help to keep cost of deposits under control and hen

margin expansion. In loan growth parameter, Axis bank expects loan growth high

than industry growth by 2%. Incremental loan growth would come from SME aretail sector while corporate loan book is expected to remain sluggish. Bankscap

adequacy ratio is close to 17% in which tier -1 capital of 12.5% much healthier th

peers indicating no need to raise money for long tenure in near term. ROA at p

provisioning profit is at 3% indicating strong capability to delivered profit once ass

quality issue resolve.

Company Updated BOOK PART

MP

Stress loan (GNPA+ Restructure asset) is remained at 3.7% of advances but it mig

go up as bank has significant exposure in power (5.54%) and Infrastructure (7.33%

where slippage risk is relatively high in present economy scenario. Provisi

coverage ratio reported by bank is 78% with technical write off which would provid

some cushion on earnings. Axis bank still have 46% of loan exposure in larcorporate where profitability uncertain due to ongoing recession. Therefore on ass

quality front, bank would still have to face tough time as per our view.

We believe market sentiment in recent days are boosted up on the hope that BJ

led NDA would come to power after the general election and revive economy. T

domestic equity market is supported by opinion poll result which suggests BJP l

NDA coming to power after the forthcoming election. Over the last few months, t

estimated numbers of seat, the NDA may win has increased from 165-175 to 22

230 seats. The prime ministerial candidate of NPA Narendra Modi is known for h

development in Gujarat. Domestic as well as foreign investors are in hope that Indi

economy would come at track and business opportunity would start again. Banki

stocks are rallied more than other sectors in hoping of reducing fresh NPA creation

64823

In last one mon th, Ax is Bank has outp erformed Ban k Nifty and CNX Nifty b

6% and 18% resp ectiv ely and is now tr adin g at mo re than 1.7 tim es of FY14

boo k value whic h is above of our upper side of valuat ion band. We value ban

in the rang e of 1.5 to 1.7 tim es of bo ok low er than its peers grou p largely du

to some expo sure in stress sector special ly in infra and pow er com paniewh ere sli pp age risk are relatively hi gh . We value bank in the rang e of Rs.122

to Rs.1340 per shar e that imply ing bo ok val ue mul tipl e of 1.5 to 1.7 based o

curren t fundamental and return rat ios. The rise of stock pri ce is suppo rted b

opin ion poll result which su ggests B JP led NDA would com e in power. ND

prim e ministry c andid ate Narendra Modi is perceiv ed by foreign investor as

decis ive and development making leader and wo uld rescue econom y.

Domestic equity market boost-up by economy revival sentiment

Key positive trigger

Key negative trigger

AXISBANK

arket Data

SE Code

"BOOK PART

PROFIT "14th March, 2014



3/21

uarterly Result

AXIS BANK

Source: Eastwind/Company

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


arterly Result 3QFY14 2QFY14 3QFY13 % YoY Gr % QoQ Gr 3QFY14E Variation

erest/discount on advances / bills 5557 5394 4907 13.3 3.0 5748 3.4

ome on investments 2110 2143 2014 4.8 -1.5 2235 5.9erest on balances wi th Reserve Bank of India 49 35 25 97.7 39.4 35 -29.2

hers 73 37 19 277.1 95.6 38 -47.4

al Interest Income 7789 7609 6965 11.8 2.4 8056 3.4

hers Income 1644 1766 1615 1.8 -6.9 1774 7.9

al Income 4628 4703 4110 12.6 -1.6 4780 3.3

erest Expended 4805 4672 4470 7.5 2.8 5049 5.1

2984 2937 2495 19.6 1.6 3006 0.8

her Income 1644 1766 1615 1.8 -6.9 1774 7.9

al Income 4628 4703 4110 12.6 -1.6

4780 3.3

ployee 655 644 615 6.5 1.7 0

her Expenses 1358 1309 1134 19.8 3.8 0

erating Expenses 2013 1953 1749 15.1 3.1 2008 -0.3

P( Rs Cr) 2615 2750 2362 10.7 -4.9 2772 6.0

visions 202 687 387 -47.7 -70.5 752 271.4

T 2413 2062 1975 22.2 17.0 2020 -16.3

808 700 628 28.8 15.5 687 -15.0

t Profit 1604 1362 1347 19.1 17.7 1333 -16.9

ance Sheet Date

t Worth 37649 36224 27027 39.3 3.9 37558 -0.2

posits 262398 255365 244501 7.3 2.8 272935 4.0

n 211467 201303 179504 17.8 5.0 214892 1.6

et qualtiy( Rs Cr)

PA 3008 2734 2275 32.2 10.0 -

A 1003 838 679 47.8 19.7 -

NPA 1.4 1.4 1.3 -

PA 0.5 0.4 0.4 -


4/21

AXIS BANK

NANCIALS & ASSUPTION




ncome Statement 2011 2012 2013 2014E 2015E

terest Income 15155 21995 27183 31198 38490

terest Expense 8589 13969 17516 18974 23716II 6566 8026 9666 12224 14775

hange (%) 31.2 22.2 20.4 26.5 20.9

on Interest Income 4671 5487 6551 6922 6922

otal Income 11238 13513 16217 19146 21697

hange (%) 25.3 20.2 20.0 18.1 13.3

perating Expenses 4860 6100 6914 7940 9330

re Provision Profits 6377 7413 9303 11206 12367

hange (%) 22.4 16.2 25.5 20.5 10.4

rovisions 3033 3189 4124 2402 2461

BT 3345 4224 5179 8804 9906AT 3340 4224 5179 5826 6934

hange (%) 34.8 26.5 22.6 12.5 19.0

alance Sheet

eposits( Rs Cr) 189166 219988 252614 290506 334081

hange (%) 34 16 15 15 15

f which CASA Dep 77758 91412 112100 124917 143655

hange (%) 18 18 23 11 15

orrowings( Rs Cr) 26268 34072 43951 51266 58956

vestments( Rs Cr) 71788 92921 113738 129873 149354

oans( Rs Cr) 142408 169760 196966 228481 265037

hange (%) 36 19 16 16 16

aluation

ook Value 460 549 708 813 942

MP 1404 1146 1304 1174 1174

/BV 3.1 2.1 1.8 1.4 1.2


5/21

Infosys

Reasons behind the weak outlooks:

1M 1yr YTD

solute 4.5 30.4 53.1

l. to Nifty 0.8 21.6 49.4

Current 2QFY14 1QFY14

omoters 15.94 15.94 16.04

40.65 39.93 39.55

15.35 16.16 18.28

hers 28.06 27.97 26.13

Financials

3QFY14 2QFY14 (QoQ)-% 3QFY13 (YoY)-%

Revenue 13026 12965 0.47 10424 25.0

EBITDA 3258.9 2836.9 14.88 2677 21.7

PAT 2874.9 2406.9 19.44 2369 21.4

EBITDA Margin 25.0% 21.9% 310bps 25.7% (70bps)

PAT Margin 22.1% 18.6% 350bps 22.7% (60bps)

Key facts from Investors Con Call

evious Target Price 3910

side 12%

ange from Previous -4%

arket Data

erage Daily Volume

"Recovery delayed, but not denied"

MP 3358

rget Price 3760

ompany update BUY A gloomy outlook by Infosys; however, the best is yet to come.

Addressing an Investor Con Call, Infosys management has expressed its cautious view

earnings outlook as well as clients spending for near term. They indicated that FY1

would be a year of lower earnings than NASSCOM guidance followed by FY13 and FY1

The companys knee jerk has not associated with single factor; these are partly compa

specific and partly external factors. We expect, this adverse scenario would impact

earnings growth for next couple of quarters.

E Code 500209

E Symbol INFY

are Holding Pattern-%

wk Range H/L 3847/2190

kt Capital (Rs Crores)

fty 6493

year forward P/E

Rs, Cro


ock Performance

192799

View and Valuation:Infosys seems to be on its way to rediscovering its past mojo w

revenue momentum kicking, and the NRN invisible hand in play. Further announcement

strategic acquisitions, better utilization of cash balances, better deal win, consistent clie

traction and revenue momentum would help the company to bridge the gap with riva

such as TCS. At a CMP of Rs 3358, it trades at 16x FY15E earnings. We retain our BU

view on the stock with a target price of target price of Rs 3760 (revised from 3910).

Impact on Estimates: We expect that the recent developments of Infosys could advers

impact our sales guidance by 2-3% and earnings growth guidance by 3-4% for FY15E. W

downgrade our revenue growth guidance from 16.5% to 13.7%.

(3) Challenges with skill mis-matches: Infosys CEO anticipated order cancellation fro

some of its clients because of its skill mis-match issue. Infosys has also seen som

challenges with skill mis-matches betweenclientsneeds and what company could ha

provided; this has led to slowdown in ramp-ups.

The company might only be able to meet the lower end of its annual revenue grow

guidance of 11.5-12% for FY14E, and they are expecting weakness in client spendi

throughout the current quarter (4QFY14E).

Slowdown in client sentiment in 4QFY14E could be remain continue in the next coup

of the quarters of the next financial year. We expect that 1HFY15E could be a part

worrisome.

(1) Poor response from Retail and CPG verticals: In the retail segment (contributes 2

of sales) a sluggish sales over the last 2 months, severe winter, and aggressive discoun

by retailers have led to lesser profitability. In addition, this has led to capping of addition

spending in CY14. Some retail clients have specific issues leading to categorization

spends. We expect this is not specific for Infosys, it could be viral for the Industry growth

(2) Portfolio related concern in Manufacturing: Recently, Manufacturing segme

(contributes 22% of sales) has adversely impacted by the reduced PC sales and cap

spending in networking and this will have an impact on revenue growth in this segme

Revenue contribution from manufacturing segments stands larger than other peers.

1240448

"BUY"14th March' 14



6/21


e believe that strong demand environment across the industry would offer Infosys

eathing space to tide over reorganization-related challenges. Its strategies on sales

fectiveness and cost optimization initiative could turn the growth story as before.

ow, we are waiting for next earning outlook and guidance by management for FY15E.

nancials

(Source: Company/Eastwi

hy the best is yet to come?

ecent weak guidance given by Infosys management is not an episode of close out. The

mpany is working on various strategies to rediscovering its past sparkle days with

venue momentum kicking.

ready, company has initiated to work closely with clients and focused on building

lationship for deal intake. To maintain margin stability and increase productivity,

mpany is working efficiently on cost optimization initiative. However, the management

dicated that early signs of sales effectiveness initiative would start showing from

HFY15E.

Infos s.


s in Cr, FY10 FY11 FY12 FY13 FY14E FY15Eales, INR 22742 27501 33734 40352 50217.7 57222.3

mployee Cost 12085 14856 18340 22565 28373.0 32330.6

ther expenses 2792 3677 4671 6254 8034.8 9441.7

otal Expenses 14877 18533 23011 28819 36407.8 41772.3

BITDA 7865 8968 10723 11533 13809.9 15450.0

epreciation 905 854 928 1099 1367.7 1558.5

ther Income 982 1211 1904 2365 2566.1 2861.1

BIT 7942 9325 11699 12799 15008.3 16752.7

nterest Cost 0 0 0 0 0.0 0.0

BT 7942 9325 11699 12799 15008.3 16752.7

ax 1681 2490 3367 3370 4202.3 4690.7

AT 6261 6835 8332 9429 10806.0 12061.9

rowth-%ales 4.8% 20.9% 22.7% 19.6% 24.4% 13.9%

BITDA 9.3% 14.0% 19.6% 7.6% 19.7% 11.9%

AT 4.6% 9.2% 21.9% 13.2% 14.6% 11.6%

Margin -%

BITDA 34.6% 32.6% 31.8% 28.6% 27.5% 27.0%

BIT 34.9% 33.9% 34.7% 31.7% 29.9% 29.3%

AT 27.5% 24.9% 24.7% 23.4% 21.5% 21.1%

xpenses on Sales-%

mployee Cost 53.1% 54.0% 54.4% 55.9% 56.5% 56.5%

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

ax rate 21.2% 26.7% 28.8% 26.3% 28.0% 28.0%

aluation

MP 2615.1 2765.1 2865.0 2400.0 3358.0 3358.0o of Share 57.4 57.4 57.4 57.4 57.4 57.4

W 23049.0 25976.0 31332.0 37994.0 45642.7 54345.7

PS 109.1 119.0 145.1 164.2 188.2 210.1

VPS 401.7 452.4 545.6 661.7 794.9 946.5

oE-% 27.2% 26.3% 26.6% 24.8% 23.7% 22.2%

ividen Payout ratio 25.1% 45.9% 24.0% 45.1% 22.9% 20.6%

/BV 6.5 6.1 5.3 3.6 4.2 3.5

/E 24.0 23.2 19.7 14.6 17.8 16.0


7/21

- V-Guard Industries Ltd.

Key Points :

MP 453

rget Price 525evious 475

side 14%

10%

E Code 532953

E Symbol

1,349

59,460

fty 6,493

1M 1yr YTD

solute (4.5) (9.0) 5.0

l. to Nifty (5.6) (13.6) (6.7)

3QFY14 2QFY14 1QFY14

omoters 65.5 65.5 65.5

18.5 17.4 14.5

2.2 2.5 3.5

hers 13.8 14.5 16.4

About El Nino

In its update on Thursday, the Australian Bureau of Meteorology said factors that lead to an

Nino were now increasingly visible. "The tropical Pacific Ocean subsurface has warm

substantially over the past few weeks

Indian Met officials are treating the reports with caution, saying that though chances of an

Nino developing around mid-2014 are growing, predictions made at this stage suffer from l

accuracy.

US agency NOAA's Climate Prediction Center, which updated its forecast on Wednesday, s

temperature anomalies associated with El Nino had strongly increased since the end of Janua

Further, NOAA said there was a 50% chance of El Nino developing during the summer or autu

this year.

(Source: Times of India/ Eastwind Research)

El Nino'the boy' in Span

is an unusual warming

sea surface waters in east

and central equatorial Pac

associated with changes

wind patterns that imp

weather in many parts of

world. It generally has

adverse effect on the Ind

monsoon.

"Colling Gun..."

Buy

On recent interview management expect a sales growth of around 10% in 4QFY14 on bacstrong sales growth of 12-12.5% in January and February month of 2014.

Last financial year for Q4 company had very low margins because of two reasons, higher

spend and one-off items. From that level, we expect there would been improvement t

quarter and margin would be somewhere around 8.51%.

Company expect the ad spends in the current quarter are likely to be Rs. 11-12 crore (2.8

of expected revenue in 4QFY14E), compared to 14 crore (3.7% of 4QFY13 revenue) wh

should in our view aid in the margin expansion in current quarter.

The El Nio visibility in 2014 would be the another factor for the revenue growth

companies like Vgaurd. As Vguard product portfolio consist of 65-70% summer facing in nat

and we believe that the strong summer expectation in 2014 and low base of FY14 would lea

revenue growth of at least 18% in FY14E.

ompany update



arket Data

ange from Previous

yr Forward P/B

V-GUARD


erage Daily Volume

ock Performance-%


Forecast updates strengthen El Nino fears

"Buy"4th Mar' 14



8/21

EBITDA % and PAT % Q-o-Q

We expect margin to expand in 4QFY14E on back of lowered ad spends and non hoping of one-

f items which hit the p/l in past year of same quarter. However we restrict our EBITDA

pectation for FY14E to 8.9% against management guidance of 9-9.5% due to significantduction in copper prices both in dollar terms as well as in rupee terms as company value its

ventory on mark-to-market basis but apart from that there are no other issues we could see.

The El Nio visibility in 2014 would be the another factor for the revenue growth of companies

e Vgaurd. As Vguard product portfolio consist of 65-70% summer facing in nature and we

lieve that the strong summer expectation in 2014 and low base of FY14 would lead a revenue

owth of at least 18% in FY14E.

At the current CMP of Rs. 452, the stock is trading at a PE of 17.0x and 13.4x of FY14E and

15E. The company can post RoE of 24.0% and 24.1% & EPS of Rs. 26.4 and Rs. 33.6 FY14E and

15E. We believe that from current level the growth would pick pace expected acceleration of

owth momentum, given the strong outlook of summer going forward. We revised our rating touy from Hold with a revised price target of Rs. 525.

Revenue Q-o-Q

(Source: Company/ Eastwind Research)

siness segments, market size and existing competition in segment

urce: Company/ Eastwind Research)

V-Guard Industries Ltd.

rong Balance Sheet

otalDebt has been reduced significantly as on 3Q FY14 to Rs. 117.7 crore, compared to Rs. 157

ore as on 3Q FY13. Working capital loan reduced to Rs. 77.1 vrore from 134.0 crore and whereas

rm loan icreased to Rs. 40.6 crore from 22.9 crore.

Working capital cycle on a TTM basis improves by 9 days to 76 days. Mainly Led by 15 daysduction in debtors. Management has also guided for improvement in net working capital cycle

5- 10 days every year going forward. This will further improve its ROCE and ROE going forward.

Strong cash generation in 9M. FY14 Cash from operations at Rs. 90 crore in 9M FY14 as

mpared to Rs. 14.5 crore for full year FY13


utlook / Valuation

(Source: Company/ Eastwind Research)


Industry Size

(crore)

V-Guard

(Share FY13)

Production

Model Key Players

a bi l i se rs 2100 201 100% Ou ts ou rce d B lu eb ird , Ca pri , Lo gi cs ta t, Pre mi um, e ve re s t

C Cables 7000 289 100% In-House Havel ls , Finolex

Power Ca bl es 6000 64 100% In-Hous e Ha vel ls , Fi nol ex

o to r Pu mp s 2000 152 90% Ou ts o urce d Cro mp to n G re a ve s , Ki rl o sk ar, CR I, Te xmo

a te r H ea te rs 800 72 90% Ou ts o urce d A.O.Smi th ,R aco ld ,B aja j,Ve nu s,Cro mp to n

ns 5000 57 90% Outs ource d Crompton,Ba ja j El ectri ca ls ,Ha ve ll s, Ori ent

S 3500 42 100% Outsourced Numeric,APC,Emerson

gi ta l UPS 5500 73 100% Outs ource d Mi crote k, Lumi nous , Su-Ka m

l ar Wa te r He ater 300 26 100% I n-Hous e Ta ta BP-Sol ar


9/21


y financials

V-Guard Industries Ltd.

urce: Company/ Eastwind Research)


ARTICULAR 2010A 2011A 2012A 2013A 2014E 2015E

erformance

evenue 454 727 994 1360 1523 1752

ther Income 1 2 2 4 5 6

otal Income 456 728 996 1364 1528 1758

BITDA 50 73 94 110 136 158

BIT 43 65 84 99 119 141

EPRICIATION 7 8 10 11 12 15

NTREST COST 5 11 17 20 21 15

BT 40 55 69 82 102 132

AX 14 16 18 19 27 33

xtra Oridiniary Items NA NA NA NA NA NA

eported PAT 25 39 51 63 79 100

ividend (INR) 10 12 12 12 12 12PS 3.5 4.1 4.1 4.1 4.1 4.0

PS 8.5 13.1 17.0 21.1 26.4 33.6

eild %

BITDA % 11.1% 10.1% 9.4% 8.1% 8.9% 9.0%

PM % 5.6% 5.4% 5.1% 4.6% 5.2% 5.7%

arning Yeild % 9.6% 7.8% 9.2% 4.8% 5.8% 7.4%

ividend Yeild % 4.0% 2.4% 2.2% 0.9% 0.9% 0.9%

OE % 18.0% 22.7% 24.1% 24.1% 24.0% 24.1%

OCE% 13.8% 16.2% 21.2% 19.4% 22.1% 21.7%

osition

et Worth 141 172 211 261 328 416

otal Debt 81 139 109 165 125 115

apital Employed 222 311 320 427 453 531

o of Share (Adj) 3 3 3 3 3 3

MP 89 168 186 435 452 452

aluation

ook Value 47.4 57.6 70.6 87.6 109.9 139.5

/B 1.9 2.9 2.6 5.0 4.1 3.2

t/Coverage 8.4 5.7 4.9 4.9 5.6 9.4

/E 10.4 12.9 10.9 20.7 17.1 13.5


10/21

TATA STEEL Ltd.

336

401

44019%

-9%

500470

32710

22897

6493

1M 1yr YTD

solute -9.3 -4.5 -3.0

l. to Nifty -16.4 -14.7 -14.2

3QFY14 2QFY14 1QFY14 Critical Debt Level

omoters 31.4 31.4 31.4

16.1 13.6 13.2

25.4 26.1 26.3

hers 27.2 29.0 29.2

Financials : Q3FY14 Y-o-Y % Q-o-Q % Q3FY13 Q2FY1

Net Revenue 36736 14.4 0.2 32107 3664

Depriciation 1522 4.0 5.4 1463 144Interest Cost 1108 7.3 3.9 1032 106

EBIDTA% 10.9 290bps 80bps 7.0 10.

OPM% 6.8 430bps 70bps 2.4 6.

NPM% 1.4 370bps (110bps) -2.3 2.(In Cr

1

ange from Previous

Tata Steel is a blue chip stock and is available at a very cheap valuation. With th

European crisis behind us, US economy getting stronger and better outlook for India

economy on the expectation of stable government at the Center, We feel Tata Steel ma

have price appreciation. valuing the financial performance We recommend Buy on thstock at a medium term target price of Rs.401.

The consolidated EBITDA of Tata Steel came in at Rs. 4006.5 crore (EBITDA margin o

10.9%) , primarily on the back of operational efficiencies realized at its European divisio

while the ensuing consolidated PAT came in at Rs. 503.2 crore. The company incurre

capex to the tune of Rs.3900 crore in Q3FY14 and Rs.12300 crore in 9MFY14 wherei

majority of capex has been incurred for Kalinganagar project.

arket Data

Tata Steel reported a good set of Q3FY14 numbers, and positively surprised by th

EBITDA/tonne of Tata Steel Europe (TSE). The company reported a consolidated ne

income from operations of Rs. 36735.8 crore for the quarter, higher by 0.2% QoQ an

14.4% YoY.In Q3FY14, Tata Steel Indias Steel deliveries stood at 2.1 MT while TSdeliveries stood at 3.2 MT and South East Asia at 1.09MT. In Q3FY14, TSI reporte

EBITDA of Rs.2936 crore while TSE reported an EBITDA of Rs.860 crore. On a consolidate

basis, consolidated steel sales stood at 6.4 MT. EBITDA/tonne of Indian operations cam

in at Rs. 14183/tonne while that of European operations came in at US$ 43/tonne


esult Update BUY

MP

rget Price

evious Target Priceside

Source - Comapany/EastWind Research


Odisha Project could provide further upside in long-term: The Company aims to mak

value added steel products at the new facility in Odisha (3mtpa) where the blende

realizations could be potentially higher than existing products by 2015. We believe time

clearance for expansion of iron ore mine is critical for the plant. The company's Odish

plant is highly automated and will require fewer employees/ton compared to it

Jamshedpur facility.


E Symbol TATASTEEL

On the back of a consistent operational improvement at the companys Europea

operations We are positive on the stock in long run .However, on the back of ongoin

capacity expansion, the gross debt is expected to increase from 66074 crore (FY13) t

76919 crore (FY14E) and 77543 crore (FY15E).

In our view, unlike Karnataka and Goa, Odisha is very critical for the Indian steel industry

We estimate Odisha iron ore production in FY13 stood at 62MT (accounting for ~45% o

Indias production).

yr Forward P/B

erage Daily Volume (Nos.)

ock Performance-%

E Code


fty

"BUY"14th March' 14



11/21

ness Outlook

ATA Steel India

pee depreciation is helping to restore balance in the market

ta Steel Europe

mmendation

11

Europe Turnover and Realization

urrent market capitalization of Rs. 23444 Crores, the stock is trading at a forward P/B

st 0.9. Tata Steel is a blue chip stock and is available at a very cheap valuation. But ifook at its historical stock performance, in the past three years it had continued to

e between 0.6 to 1.9 P/B range. After bottoming out in August 2013 at a stock price of

under Rs. 200, Tata Steel stock have more than doubled in the past few months. Since

ary 2014, the stock had corrected slightly but still it is available at a low P/B (very

h closer to the lower end of its P/B range). With the European crisis behind us, US

omy getting stronger and better outlook for Indian economy on the expectation of

e government at the Center, We feel Tata Steel share price may have some more

appreciation left given the improvement in financial performance and Outlook. We

mmend Buy on the stock at a medium term target price of Rs.401.

e political uncertainty still continues in Thailand with no clear solution at sight.

owever, the business is focusing on customer relationships and service levels to drive

rformance.

Europian Steel Deliveries

Southeast Asia Steel Deliveries

e ministry of coal deallocated two of TATA coal blocks at pachmo and Kotre

santpur. Tata steel appealed in the high court for this concern and waiting for the

aring of high courts hearing on 26th march.ntiment has improved; though sectors like construction and auto continue to be

der pressure.

quid steel production improved further 1% QoQ to 3.91m tons. Sales volumes

wever declined 8% QoQ (+5.6% YoY) to 3.19m tons due to seasonal factors leading to

crease in inventories by 300kt to 2.6m tons.

perating leverage helping EBIDTA margin to improve.(EBIDTA /ton increased 72% to

.273.)

U steel demand expected to show signs of gradual recovery in Q4 (+3.3%) from a low

se and could translate into a recovery in end user sectors in 2014. TSE will ramp up

oduction from currently operating facilities. TSE expects to liquidate inventories in

QFY14 leading to sales volumes surpassing production.

Southeast Asia Turnover and Realization

TATA STEEL

Indian Turnover and Realization

uth East Asia Operation

onstruction sector outlook remains positive in the region, hence showing a positive

gnal for steel.


Indian Steel Deliveries


Indian Steel Deliveries



12/21

al Up & Downs

12

TATA STEEL

One year Stock Performance

One year LME Steel Price

nancials

ina's industrial output rose 8.6% in the first two months of 2014 from a

ar earlier, the National Bureau of Statistics said on Thursday, missing

arket expectations for a 9.5% rise.



13/21

V- Shakti Pumps (India) Ltd.

Key Points :

MP 76

rget Price 105

NA

side 38%

0%

E Code 531431

E Symbol

116

13,645

fty 6,518

1M 1yr YTD

solute 1.5 44.2 72.4

l. to Nifty (6.0) 31.5 57.8

3QFY14 2QFY14 1QFY14

omoters 45.0 44.9 44.9

0.0 0.0 0.0

9.9 10.5 10.5hers 45.2 44.7 44.7

"Turnarround Counter..."

Buy

38/88

ompany update

SHAKTIPUMP

The company was the first to get 5 star rating for energy efficiency for its products from B

In addition to submersible pumps, company also producing Vertical Multistage Centrifu

pumps, Pressure booster pumps, Open well pumps, End suction pumps etc. Recently compa

introduced pumps working with solar power.

In next three years company incline to achieve sale revenue of Rs. 600 crore with the

margin of 9-10%.

Company is planning to increase the Branch Network to 30 and Dealer network to 3 fold

coming few year. Further, Company have plans to register our presence in all BRICS, G20 a

European Union and in other growing countries in coming years.

On valuation front shakti pump is available at a single digit PE and EV/EBIDTA of 5.6x/4

and 4.7x/3.8x of its FY14E/15E estimates. In a volatile market, a company available at sindigit valuations certainly looks up for grabs.

Pledging of shares by promoters is the only reason for some concern.But ,since its finan

performance is improving quarter over quarter ,I dont expect much issues from t

angle.Moreover pledge is not with any NBFC but with one of its bankers - Axis Bank.

wk Range H/L


ange from Previous

evious Target Price

yr Forward P/B


ock Performance-%

arket Data

erage Daily Volume


Company Profile

Shakti is a manufacturer of stainless steel submersible pumps and motors ranging from 0.5 HP

255 HP used in domestic, industrial, irrigation, and fire-fighting and located at Pitham

Madhya Pradesh. Company is the first five star rated pump manufacturer in India. In addition

submersible pumps ,company also producing Vertical Multistage Centrifugal pumps, Press

booster pumps, Open well pumps, End suction pumps. The company is mainly focused on

export market and sup-plies its products to around 50 countries, such as US, UK, Turkey, Spa

Netherlands, Germany, France, Italy, Australia, Sri Lanka, etc. Nearly 58 per cent of its reven

are from exports. Of the balance 42 per cent of domestic revenues, 60 per cent come fr

supply to farmers, 20 per cent from domestic demand, 12 per cent from government institutio

and the balance 8 per cent from various industrial sectors.

Industry Structure and Development

The Indian pump industry is estimated to be Rs. 8000 crores in 2012-13. It is likely to grow at

and expected to reach Rs. 18000 crores by 2017-18. The market demand is driven

infrastructure based spending, urbanisation, growth in manufacturing activity, refurbishmen

upgradation and overall increase in the population, insufficient rains and falling water tables ha

led to demand for improvement in hydraulics and pump efficiency. The rising cost of oil positively influenced the demand for energy conservative pumps and pumps driven by renewa

energy sources. There will be strong demand for pumps from developing countries like China a

India due to industrialisation and investment in water and power segments. The develop

nations propose to repair and upgrade their old water infrastructure. This will lead to go

replacement demand for pumps in developed countries.

"Buy"13th Mar' 14



14/21

Shakti Pum s India Ltd.

asons of laggard performance :

current price of Rs. 75, the stock is trading at P/E of 5.5 x for FY14E and 5.0 x the FY15E.

corts could post EPS of Rs. 13.6 for FY14E and Rs. 18.7 for FY15E. Consideringmanagements

gressive expansion in production capacity and marketing network, I believe company can

liver good growth in coming years. Further, we expect the company to benefit immensely from

e subdued steel prices currently. We expect the benefit to flow in for the next coming quarters

well. We recommend a "Buyrating on stock with price target of Rs. 105

ving said that, there are reasons we believe this scrip may not perform as per the expectations

the bourses. First and foremost, one should note that Shakti is in a business domain that has

w entry barriers and the products can be easily manufactured. Currently, Shakti manufactures

ly steel sub-mersible pumps and though it positions itself as an energy-efficient pumpanufacturer, there are other players too who manufacture such energy-effi-cient pumps.

wever, the company is increas-ing its product line by adding boost-er pumps, mono-block, and

en well pumps to its portfolio. Shaktiis installing a new 65,000 unit per annum capacity for

oster pumps at a cost of Rs 35 crore, which is being funded through a combination of debt (Rs

crore) and internal accruals (Rs 10 crore). This expansion is expected to come on stream and

rt generat-ing revenues in coming periods

utlook :

s one of the fastest growing companies from this sector .From Rs.41 Cr sales in 2006 it reached

op line of Rs.210 Cr in 2013. Its export thrust and improvement in Indias rural economy is

pected to drive further growth .Company is targeting a turnover of Rs.600 Cr in next three years.


Revenue Q-Q (In Crores)

(Source: Eastwind Research)

(Source: Eastwind Research)

Operating Profit Q-Q (In Crores)

drive its domestic growth, Shakti has already strength-ened its marketing team and domestic

aler network to 650 from 192 just two years back. Though this renewed focus should help

nerate revenues for Shakti, the new product portfolio isnt a unique one and is already

anufactured across the country. Thus Shakti seems to be a late entrant in these products and

erefore one will have to wait and watch the kind of growth it posts in these segments. Besides,

ere is a huge unorganised market on the domestic front which firstly eats into the market share

ccording to the management,Shaktismarket share is 3 per cent in the overall pump industry i.e.

clud-ing the unorganised market) and sec-ondly, it reduces the pricing power of the organised

ayers, thus impacting realisations and margins. However, Most Governments are insisting on the

e of Star-rated pumps wherever it is subsidising their purchase on account of higher energy

ficiency. With labour getting scare and expensive, there is a greater preference among

riculturist to work with branded models that promise a higher uptime, circumventing the need

invest in submersible pump extraction, repair or replacement. The result is that the market

are of thecountrysunorganised sector has steadily declined from 95% to 80%; the performance

the organised sector growth over the unorganised provides the industry optimism.

luation :



15/21

urce: Eastwind Research) (Figures in crore)


Shakti Pum s India Ltd.

y financials :


PARTICULAR 2011A

9M 2012A 2013A 2014E 2015E 2016E

Performance

Revenue 135 192 209 270 338 422

Other Income 1 1 7 7 7 7

otal Income 136 193 215 277 344 429

BITDA 25 31 30 41 51 63

BIT 22 27 25 34 43 55

DEPRICIATION 3 4 5 7 7 8

NTREST COST 6 9 12 14 14 15

BT 17 18 20 26 36 47

AX 3 4 3 6 8 10

Reported PAT 13 14 17 21 28 37

Dividend 2 2 2 2 2 2PS 10.8 9.1 11.0 13.6 18.7 24.1

DPS 1.4 1.1 1.2 1.3 1.3 1.3

Yeild %

BITDA % 18.4% 16.0% 14.4% 15.0% 15.0% 15.0%

NPM % 9.9% 7.2% 7.8% 7.5% 8.3% 8.6%

arning Yeild % 20.6% 19.5% 25.5% 18.0% 24.6% 31.8%

Dividend Yeild % 2.6% 2.4% 2.7% 1.7% 1.7% 1.7%

ROE % 20.5% 15.9% 15.5% 16.3% 18.5% 19.5%

ROCE% 9.2% 8.2% 8.8% 10.0% 12.2% 13.7%

Position

Net Worth 65 87 109 128 154 189

otal Debt 81 83 82 80 80 80

Capital Employed 147 170 191 208 234 269

No of Share 1 2 2 2 2 2

CMP 52 47 43 76 76 76

Valuation

ook Value 52.6 57.3 71.3 83.7 101.1 123.9

/B 1.0 0.8 0.6 0.9 0.8 0.6

nt/Coverage 3.6 2.9 2.1 2.4 3.1 3.6/E 4.9 5.1 3.9 5.6 4.1 3.1


16/21

HCLTECH

1M 1yr YTD

solute 2.6 85.5 135

l. to Nifty -5 75.9 122.9


omoters 61.75 61.84 61.92

28.05 26.01 24.45

4.20 5.70 6.49

hers 6 6.45 7.14

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

8184 7961 2.8 6273.8 30

2125 2093 1.5 1417 50

1495 1416 5.6 965 54

26.0% 26.3% (30bps) 22.6% 340b

18.3% 17.8% 50bps 15.4% 290b

(2) Software-as-a-Service (SaaS): software that is owned, delivered and manag

remotely by one or more providers.

(3) Social Technologies:Technology that facilitates social interactions and is enabled

a communications capability, such as the Internet or mobile device.

101643 (1) Smart Computing: Consulting Solution for next-generation IT infrastructure

maximize workforce. The aggregation and management of Cloud services is execut

through HCL's proprietary MyCloud platform.


arket Data

E Code 532281

E Symbol HCLTECH

Key takeaways from recent Investors Conference in Mumbai:

Trump Card on rebid Market: HCL Tech Management expressed its optimistic tone f

rebid opportunity with a deal of $45bn for negotiation in CY14E. Most of rebid would

come from Infrastructures and traditional IT segments. Across the tier-1 IT space, HTech will be most beneficiary because of large exposures in Infrastructures space (36%

sales).ange from Previous 5.8%


5 major technological changes are expected to open up new opportunities for serv

providers:

EBITDA Margin

PAT Margin

"Retain confidence"

MP 1454

rget Price 1650

ompany update

Visionary approach to changing market dynamics:Forward looking statement from t

desk of BoD (Given on annual report 12-13) reveals 5 major strategies to compete mark

dynamics and company is focused for the same.

evious Target Price 1560

side 13%

Buy

Financials

ock Performance

year forward P/E

Rs, Cro



Looking for strategic partnership with CSC:HCLTech is looking an opportunity of strate

partnership to transformclientsservices from legacy to cloud based technologies. As p

IT based Gartner survey, clients are looking to retire, replace, and revise 80-85% of thapplications over the next 2 years. The company expects to acquire and quantify of th

opportunity with CSC (Nasdaq-listed IT services firm Computer Sciences Corporation, CS

View and Valuation:HCLtechsdecent level of utilization, focused on cost control a

utilization of new market opportunities through vendorsconsolidation would provide

new shape to the company in near future. On performance front, it continues to be bull

on the rebid market and bullish on short-term to medium term, momentum on de

pipeline also looking robust. Considering the increasing discretionary spends across t

geographies like US and Europe, we expect healthy earnings performance ahead. At

CMP of Rs 1454, stock trades at 17.4x of FY14E earnings, We retain BUY on the stock a

revised our target price from Rs 1560 to Rs1650.

(4) Mobility: Mobility offering services from mobile application development a

integration to mobile application services, to fully managed mobility includ

provisioning, hosting, and end-user support.

(5) Analytics:End-to-end life cycle of services including management and hosting

customer assets, consolidation and migration services, virtualization and design a

management of green data centers.

Revenue

EBITDA

PAT

erage Daily Volume 1193062


fty 6512

"BUY"12th Mar' 14



17/21



nancials;

HCLTECH

ealthy deal pipeline:uring the quarter, HCL Tech reported an addition of 15 transformational deals in the US

d Europe for the December quarter. These wins have been in the momentum markets

manufacturing and Financial Services as well as the emerging momentum markets of

e sciences & Healthcare and Public Services. Across the geographies, USA and Europemain best to drive deal wins during the quarter because of healthy scenario of demand

vironment.


s, Cr FY10 FY11 FY12 FY13 FY14E FY15E

Net Sales-USD 2704.6 3545.3 4151.5 4686.5 5464.6 6484.1

Net Sales 12136.3 15730.3 20830.6 25581.1 32787.8 39229.

aw Materials Cost 443.6 522.1 612.0 959.3 983.6 1176.9

mployee Cost 6253.7 8589.6 11104.6 12574.2 16066.0 19418.

Operation and other expenses 3498.5 4163.2 5418.8 6386.4 7213.3 8826.5

otal Expenses 10195.7 13274.9 17135.3 19919.9 24262.9 29421.

BITDA 1940.6 2455.4 3695.2 5661.2 8524.8 9807.2

Depreciation 418.1 459.7 549.2 636.8 742.5 881.0

Other Income 154.1 299.7 206.5 306.6 460.5 590.2

xtra Ordinery Items 0.0 0.0 0.0 44.5 -491.8 78.5

BIT 1522.5 1995.7 3146.0 5024.4 7782.3 8926.2

nterest Cost 204.1 142.6 142.6 105.6 79.2 59.4

BT 1472.4 2152.8 3209.8 5269.9 7671.8 9535.5

ax 213.4 488.5 782.7 1225.3 1841.2 2336.2

AT 1259.0 1664.3 2427.1 4044.6 5830.5 7199.3

Growth-%

ales-USD 24.1% 31.1% 17.1% 12.9% 16.6% 18.7%

ales 18.6% 29.6% 32.4% 22.8% 28.2% 19.6%

BITDA 5.9% 26.5% 50.5% 53.2% 50.6% 15.0%

AT -4.6% 32.2% 45.8% 66.6% 44.2% 23.5%

Margin -%

BITDA 16.0% 15.6% 17.7% 22.1% 26.0% 25.0%

BIT 12.5% 12.7% 15.1% 19.6% 23.7% 22.8%

AT 10.4% 10.6% 11.7% 15.8% 17.8% 18.4%

xpenses on Sales-%

mployee Cost 51.5% 54.6% 53.3% 49.2% 49.0% 49.5%

M Cost 3.7% 3.3% 2.9% 3.8% 3.0% 3.0%

Operation and other expenses 28.8% 26.5% 26.0% 25.0% 22.0% 22.5%

ax rate 14.5% 22.7% 24.4% 23.3% 24.0% 24.5%

Valuation

MP 364.9 493.5 490.0 759.5 1454.0 1454.0

No of Share 67.9 68.9 69.3 69.6 69.6 69.6NW 6288.8 7653.0 9837.9 13164.0 17854.4 23913.

PS 18.5 24.2 35.0 58.1 83.8 103.4

VPS 92.6 111.1 141.9 189.1 256.5 343.5

oE-% 20.0% 21.7% 24.7% 30.7% 32.7% 30.1%

Dividend Payout ratio 25.0% 31.5% 33.1% 20.0% 19.6% 15.8%

/BV 3.9 4.4 3.5 4.0 5.7 4.2

/E 19.7 20.4 14.0 13.1 17.4 14.1


18/21

BANKBARODA

651

700

624

812

1M 1yr YTD

bsolute 16.6 -8.3 -8.3

el.to Nifty 8.7 -21.4 -21.4


omoters 55.4 55.4 55.4

I 15.5 15.5 15.3

I 19.6 19.6 19.0

hers 9.5 9.5 10.3

Financials Rs, Cr

2011 2012 2013 2014E 2015E

NII 8802 10317 11315 12218 14122

Total Income 11611 13739 14946 16400 18304

PPP 6982 8581 8999 9206 10067

Net Profit 4242 5007 4481 4444 4819

EPS 108.3 121.8 106.4 105.5 114.4

hange from Previous

ANKBARODA Vs Nifty

hare Holding Pattern-%

18.25 Cr

fty 6537

2wk Range H/L

21627

Provisions were lower by 11.5% YoY on account of reversal of investme

depreciation to the tune of Rs.120 cr offset additional provision towards noperforming assets. But banks stress loan (slippage + Restructure) loans we

Rs.1275 cr which was almost in previous quarter. Lower provisions made 17%

PBT but at operating profit level, it was down by 2.6% YoY. Tax rate was higher d

to creation of DTL as per advice by RBI.

View & Valuation

On fundamental wise, we are not very impressed with bank but in recent market ra

PSB as well as private banks participated more than any sector likely due

outcome of exit poll for the coming election. We believe bank would rally mo

because of trading at lower side despite of index is running at all time high. But w

this fundamental Bank of Baroda would trade in range of Rs.625 to Rs.7

depending upon sentiment as per our view.

kt Capital (Rs Cr)


(Source: Company/Eastwind)

ock Performance

MP

NNUAL REPORT UPDATE

arget Price

evious Target Price

Profit inflated due to lower provisions led by reversal of investment

depreciation

Advance growth led by SME and retail

verage Daily Volume

At the curr ent pric e of Rs.651/share stoc k is trading at 0.77 tim es of FY14

boo k value which is now p remium over its peer grou p. We value bank at th

rang e of Rs.634 to Rs.790 im ply ing val uatio n mul tip le of 0.75 to 0.9 tim es

one year forward book. But upper side of book v alue mult ip le would b

pos sibl e only if the imp rovem ent of asset quality along with imp rovin g sign fund amentals . Bu t in its quarter ly result , banksperformanc e was mu ted

aroun d exc ept healthy loan and depos its growth . CASA grow th was remaine

mu ted in comp are to SBI and PNB. So cos t of depos its is un lik ely to so ften

near term whi le asset qual i ty was deter iorated higher in percentage a

compare to PNB and SBI . In the fo l low ing s ect ion we wi l l d iscuss th

fundamental improvement of bank dur ing q uar ter.

NII growth on the back of loan growth and margin expansion

esult update ADD

BanksNII grew by 7.6% YoY largely due to healthy loan growth and sequentia

margin improvement of 5 bps. Margin improve came from domestic push from 2.85

to 2.95 while international NIM remained stable at 1.18%. Cost of fund declined

14 bps quarterly due to lower borrowings as a percentage of percentage of NDTL.

Advances grew by 18% YoY largely came from SME and retail sector which grew

39% and 21% YoY respectively. Bank continued to be cautions while expanding

exposure towards large corporate owing to economy recession. Deposits grew

21.5% YoY, added by foreign currency non- resident deposits but CASA franchi

remained flat at 26%. So in CASA front we are not impressed and going forward co

of fund is unlike to be soften in our view.

arket Data

pside

773/429

SE Code 532134

SE Symbol BANKBARODA

"ADD"11h March. 2014



19/21

BANKBARODA




arterly Result (Rs Cr) 3QFY14 2QFY14 3QFY13 % YoY Gr % QoQ Gr 3QFY14E

erest/discount on advances / bills 7061 6832 6485 8.9 3.3 7173

ome on investments 2175 2220 1898 14.6 -2.0 2350

erest on balances with Reserve Bank of India 245 281 403 -39.2 -12.8 397

hers 209 140 58 258.2 50.1 173

tal Interest Income 9691 9473 8845 9.6 2.3 10092

hers Income 932 974 841 10.9 -4.3 1102

tal Income 10623 10447 9686 9.7 1.7 11194

erest Expended 6634 6579 6004 10.5 0.8 6792

3057 2895 2841 7.6 5.6 3300

her Income 932 974 841 10.9 -4.3 1102

tal Income 3989 3869 3681 8.4 3.1 4402

ployee 1056 1030 798 32.3 2.5 1189

her Expenses 736 714 627 17.3 3.1 792

erating Expenses 1792 1744 1426 25.7 2.7 1981

P( Rs Cr) 2197 2125 2256 -2.6 3.4 2421

ovisions 762 861 1029 -26.0 -11.5 897

ceptional Items 16 16 12 25.0 0.0 0

T 1436 1264 1227 17.0 13.6 1524x 372 80 203 83.7 364.7 457

t Profit 1048 1168 1012 3.6 -10.3 1067

ance Sheet Date( Rs Cr)

uity Capital 423 423 412 2.5 0.0

serve & Surplus 35232 35127 30966 13.8 0.3

t Worth 35654 35549 31379 13.6 0.3

tal Deposits 503772 484931 414733 21.5 3.9

rrowings 29304 28558 27899 5.0 2.6

her liabilities and provisions 18638 13995 14552 28.1 33.2

tal Liability 587368 563033 488563 20.2 4.3

sh in hand 16742 15681 17147 -2.4 6.8

sh and balances with RBI 87599 79980 58295 50.3 9.5

tal Investment 115210 111840 101848 13.1 3.0

vances 352446 339855 299318 17.7 3.7

ed Assets 2562 2498 2399 6.8 2.6

hers Assets 12809 13179 9557 34.0 -2.8

tal Assets 587368 563033 488563 20.2 4.3

set Quality

PA( Rs Cr) 11926 10888 7321

A(Rs Cr) 6624 6316 3363

GNPA 3.4 3.2 2.4

NPA 1.9 1.9 1.1

PCR (without technical writeoff) 44.5 42.0 54.1


20/21

BANKBARODA




ncome Statement 2011 2012 2013 2014E 2015E

terest Income 21886 29674 35197 39065 45206

terest Expense 13084 19357 23881 26847 31084

II 8802 10317 11315 12218 14122

hange (%) 48.2 17.2 9.7 8.0 15.6

on Interest Income 2809 3422 3631 4182 4182

otal Income 11611 13739 14946 16400 18304

hange (%) 32.8 18.3 8.8 9.7 11.6

perating Expenses 4630 5159 5947 7194 8237

re Provision Profits 6982 8581 8999 9206 10067

hange (%) 41.5 22.9 4.9 2.3 9.4

rovisions 1331 2555 4168 3559 4043

BT 5650 6026 4831 5647 6024

AT 4242 5007 4481 4444 4819

hange (%) 38.7 18.0 -10.5 -0.8 8.4

alance Sheet

eposits( Rs Cr) 305439 384871 473883 521272 573399

hange (%) 27 26 23 10 10

f which CASA Dep 87589 103524 119981 135531 149084

hange (%) 23 18 16 13 10

orrowings( Rs Cr) 22308 23573 26579 33273 36600

vestments( Rs Cr) 71261 83209 121394 122000 134200

oans( Rs Cr) 228676 287377 328186 367568 404325

hange (%) 31 26 14 12 10

atio

vg. Yield on loans 8.0 8.7 8.4 8.6 9.3

vg. Yield on Investments 7.0 7.8 6.4 7.3 8

vg. Cost of Deposit 4.3 5.1 5.2 5.2 5.4

vg. Cost of Borrowings 5.5 6.7 5.4 5.5 5.5

aluation

ook Value 536 668 759 846 929

MP 963 794 652 513 513/BV 1.8 1.2 0.9 0.61 0.6


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.

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