the money navigator may 2016

8/17/2019 The Money Navigator May 2016

1/361st May-2016 to 31st May-2016 www.jhaveritrade

F o r P r i v a t e C i r c u l a t i o n O n l y

Issue ThemePg. 1

Tjhopg

Ipqf

Company AnalysisPg. 12-15

Open FuCalls Pg

We think that initial signs of recovery in earnings have started, but we have to wait for full recovery. According to onestimates, Nifty 50 companies (so far available for 13 companies ) aggregate net sales and net profit grew 4% an19% Y-o-Y respectively. As initial signs are positive, but full conclusion can only be drawn at the end of this monwhen all results will be out. Weexpectconsolidationphaseas markets have runsignificantly in anticipation.

OPENFUNDAMENTAL

CALLS

SI NS of HOPSIGNS of HOPEI NS of HOPSIGNS of HOPE

Good Monsoon

Sign of Earning Recovery

Rise ofCommodity

Prices Indian Firms Deleveraging

Fast


2/36

Call : 9925420000We would like to hear from you

Live Chart

Easy to Operate

Trade in EQUITYFUTURE / OPTION

Live PriceMovement

No Hid

Char

www.jhaveritrade.com | www.jetrade.in SMS JeTrade to : 9601336677

08049336177

Give Missed Call

Compatible with All Operating Systems

Trade Whenever & Whereve

Faster Smarter Simple

Jhaveri Securities Ltd. All Rights Reserved


3/36

www.jhaveritrade.com

From The MD’s Desk

The next trigger in the market Is the corporate earnings, which has already been started and it seems to have the old edge.The business confidence has started to improve and the guidance is also relatively better. It is true that the global problem

has not subsided meaningfully and the fear of hard landing is still looming. The Federal Reserve is also taking into account

the uncertain global situation and is clearly divided for raising the rates. Recently Fed kept the rates unchanged with some

hawkish comments but the chances of raising the rates in June clearly depend on the data of consumer spending and

unemploymentclaimsandsome experts do notsee anyrate hike duringthis fiscal.

The world market was expectingsomemore stimulus fromThe Bank of Japan whichdidn’t happen and the currencymarket

has started tobehaveviolently and created high volatility incurrencymarketand equity too.The riseofYen ofalmost 3%in a

day pushed the corporate world over to unwind their Yen carry trade positions and run for the cover. So this volatility seems

to be a temporary one for Indian market and any positive news from earnings front coupled with monsoon expectation may

revivethemarket towards uptrend.

Indianmarkethasdeclined from thepsychological level of 8000 andclosednear to its200DMA. There arecertain important

technical resistances towards the journey of 8100-8200 but we seem to be on track unless the important support of 7550-

7600 is decisivelybroken.

Kamlesh Jhaveri ( MD )

Jhaveri Securities Ltd.

Consolidation in market is expected


4/36


I s s u e T h e m e

Tjhopg

IpqfSigns of Hope

1

Is it too early to celebratemonsoon cheer ?

We know that Indian stock markets surged to over three-month highs on a troika of positive data points. 1) Themeteorological department forecast above average monsoon rains this year 2) Retail inflation eased 3) Factory output

rebounded. But economists sounded cautious as it may be too early to celebrate on the basis of these data points.

According to economist, while the prediction of normal monsoon rains, after two years of back-to-back droughts, is a big

positivehowever monsoon forecast havegone terriblywrong in the past. It is not about the quantum of the monsoon. It is the

distributionacrosstime andspacewhich iscritical.

They also believe that drawing implications from monsoon estimates for growth or prices will be premature at this juncture.

The translation of strong/weak monsoon into production gain/loss and income gain/loss feeding into rise/fall in aggregate

demandis too early tobefactored inright now.

Uncertain global cues may continueWe believe that it is combination of global cues that may happen the market going forward. The Bank of Japan surprised

world economy bydeclining toadoptmore stimulusandalso left unchangedthe0.1% negative rate.

Rising oil prices and a more stable Chinese economy may allow the US Federal Reserve to shift its focus back to the to the

homeas it signaled thatUS jobsand inflationdata would determine whether itwill hike interest rates inJuneornot.

Corporate Earnings set thecoursefor the marketEarnings reviewof theearly birds depict some trend as most of India’s topcompanies that have reported their March quarter

financial results have exceeded investors’ expectations, indicating that an earnings turnaround is gaining traction. Example

: Out of 76 BSE 500 companies that reported their earnings by Friday and for which comparable estimates are available

showed that 64.5%, or 49 of them, beat Bloomberg consensus estimates for net profit. For net sales , 48 or 63.2% of the

firms under thereview to beat estimates. Assuming that these trendsholdup across largersamples, India Incwill be happy.

After two years of stagnation, there is finally some visibility of the so-called green shoots of recovery. If the monsoon

conforms to predictions that it will be "super-normal" andwell-distributed, the boost to consumption will contribute to growth

accelerationandhelp broaden thecyclical expansion.

ConclusionThe domestic equity market showed a smart bounce throughout March, surging as much as 10% which revived hope of a

resumption of the last bull run that ended in March 2015. Weare neither in a euphoric zone and nor in overvalued zone. One

of the mostnoticeable thing ofcurrent phase ofmarket isnew IPOsand new listings. New companies needtocomebecause

when newcompaniescome in to themarket, they bringexcitement.Thenear term bigworry forthe market isBritish Exit from

European Union. We believe that current phase of market is consolidation as market has discounted some recovery in

earningsandgood hope ofmonsoon.

Southwest Monsoon - % departure from long period averageYear

% Departure

2010

2

2011

1.6

2012

-7.1

2013

5.6

2014

-11.9

2015

-14


5/36

www.jhaveritrade.com2

Pharmaceutical Sector Overview

Global pharmaceutical indust ry

Theglobalpharmaceutical market is estimatedto reach US$ 1.3 trillion by2018, growing at a CAGR of 4-7% (between 2014and 2018), an increase of US$ 290-320 billion. The growth of developed markets will be driven by the US, Japan and five

majorEuropeanmarkets (Germany, France, Italy, Spain andtheUK).Thecontributionof pharmergingmarkets in thegrowth

pie isexpectedto increaseoverthe next fiveyears;and account for nearly50% ofabsolutegrowth in2018.

Thekey growth drivers for the global pharmaceutical industry arethe following:

Risingshareof emerging economiesin globalGDP

Aging population and rising life expectancy.

Increasingaccesstomodern healthcare.

Improvinghealthcareawarenessand improvement in medical practices.

Indian pharmaceutical industryThe Indian pharmaceuticals market is the third largest in terms of volume and thirteenth largest in terms of value, as per a

reportby EquityMaster. Branded generics dominate thepharmaceuticalsmarket, constitutingnearly70 to80 percent of the

market. India is the largest provider of generic drugs globally with the Indian generics accounting for 20 per cent of global

exports in terms of volume. Of late, consolidation has become an important characteristic of the Indian pharmaceutical

marketas theindustry is highly fragmented.

India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and

engineerswhohave thepotential tosteer theindustryahead toan even higher level.

TheKey Segments in the Indian Pharmaceutical Industry areas follows: API Manufacturers / Traders( Bulk Drugs)

Formulation Manufacturers

ContractResearchandManufacturing ServicesCompanies(CRAMs)

Biotechnology Companies

612

30

5560

50

40

30

20

10

02005 2013 2015 2020E

Revenue of IndianPharmaceutical Sector

( US$ Billion )

Revenue share of IndianPharmaceutical Sub-Segments

in 2015

Generic Drugs

OTC Medicines

Patented Drugs

9%

21%

70%


6/36


S e c t o r U p d a t e


3

API Manufacturers / Traders ( Bulk Drugs)

TheglobalAPI industry is expected togrow ata CAGRof 9.4% from 2013-2018. TheglobalAPImarket iswitnessing goodgrowth. Thismomentumis expected tocontinueconsideringpatents expiring in theUSandEurope, growthin emerging

marketand increasingdemandforessentialdrugs.Strong growthin volumes isstill expected in thesemarkets as increasing

competition from genericswill lead tocost pressureson innovatorcompanies.

Indian bulk drug exports have shifted in favour of regulated markets. The share of regulated markets in Indian bulk drug

exports to rise about 51%by 2018-19 from 43%in 2008-09, drivenby Indianmanufacturers' betterprocess chemistryskills,

low manufacturing costs, a higher number of drug master filings (DMFs), the expected expansion of key generic markets

andcost reduction initiativesby largeglobal companies.

Formulation Manufacturers

The growth story of the domestic formulations market is expected to remain strong, led by a rise in life-related diseases,better healthcare diagnostic infrastructure adding to increasing disease detection rate, new product introductions, volume

growth driven by increasing penetration, and better access to healthcare. Domestic formulation sales are set to grow at a

CAGRof 12-14%between 2013-14 and2018-19, with themarketsize crossingUSD 20billion.

Contract Research and Manufacturing Services Companies (CRAMs) According to the global CRAMS market outlook to 2018, India and China present right prospects of market size by value of

CRAMS services globally. CRAMS as a segment constitutes of Contract Research Organization (CRO) & Contract

Manufacturing Organization(CMO),of whichCMO constitutesa majorportion (>60%)of theoverall business.

The Indian Contract Research and Manufacturing Services (CRAMS) players are expected to register a strong growth rate

of 18-20%CAGR to touch $18billionby 2018, from $7.6-7.8 billion in 2013. Factors likepatentcliff, favourable currency and

focus on new product development would drive growth forCRAMsplayers.Also, patented drugs, worth nearly $85 billion in

potentialannual sales in the U.S., are expected to go off patent between 2014 and 2020.This is likely to boost the prospects

of Indiancontract manufacturing segment (CMS) companies.

Biotechnology CompaniesThe Indian Biotechnology sector is presently divided into five segments based on the products and services offered.These

segments are Bio-Pharmaceuticals, Bio-Services, Bio-Agriculture, Bio-Industrial and Bio-Informatics. Bio-Pharma is the

largest sector contributing to 62% of the total revenue followed by Bio-Services, Bio-Agri and Bio-Industrial sectors which

contribute 18%, 15% and 4% respectively. Bio-Informatics is still at a nascent stage contributing to only 1% of the total

revenue.

India is among the top 12 biotech destinations in the world and ranks second inAsia, after China. The Indian biotechnology

industry has evolved over the last three decades and the sector's revenue has rapidly increased from USD 300 million in

2002-03 toUSD 4 billionin 2013-14.


7/36



4

Pharma export to continue witnessing high growth...

IndianPharmacompaniesare capitalizingon exportopportunities in regulatedandsemi-regulatedmarkets.

Theministry of Commerce targets to exports USD25billion worth of Pharmaceuticals in 2016.Indian drugs areexported

tomorethan200 countriesin the world,withthe USas the key market.

India is theworld's largest providerofgeneric medicines; thecountry'sgeneric drugsaccount for20% of globalgeneric

drugexports.

In termsof Value, exports ofpharmaceuticalproducts increasedat a CAGRof 26.1%toUSD 10.1 billionduringFY06-13.

TheAmericasaccountedfor around34%of IndianPharmaexports in FY13,followed byEurope(26%)andAsia(20%)

Exports toAfrica increased at a CAGR of 21% from FY09 to FY13,contributed mainly by export of anti-malarial and anti-

retroviraldrugs.

Quality issues raised by USFDA and releasing alternative drugs to cope FDC bans remain

criticalThe union health ministry banned 344 fixed dose combinations (FDC) in March 2016 under section 26 (A) of the drugs and

cosmetics act, 1940.A combination drug or FDC includes twoor more active pharmaceutical ingredients (API) combined in

a single-dosageform, manufacturedand distributed in fixedassets.

ThePharmasector is expected to reportgood growthforthe fourthquarter of 2015-16 despite regulatory concerns raisedby

USFDAand therecentbanon 344fixed dose combinations imposed by thegovernment.Theprice increase,volumegrowth

andnewproduct innovation arelikely todrive thedomesticPharmamarket.

According to various committees set up by the Health Ministry, India has a very large number of drug formulations, between

60,000 and 85,000. The authority given to state governments to clear FDCs has resulted in such a high number of

formulationsbecomingavailable in themarket. TheHealthMinistryarguesthat such massive drug consumptionduetoa

12

10

8

6

4

2

0FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14*

23

45 5

7

910

8

0.4 0.6 0.7 0.9 1.1 1.2 1.7 1.8

1.2

Exports ( USD Billion ) Imports ( USD Billion )

Indian Pharma Sector Trade Data

* - From April 2014 to Dec 2014


8/36


S e c t o r U p d a t e


5

combination of various drugs leads to the body getting immune to the medicine’s effect and also carries the risk of side-

effects onvital organssuchasthe kidneyor the liver.Thedomesticsales ofPharmacompaniesareexpected to fall byanestimated4.5% dueto threemajordevelopments:

Thegovernment’s decision toban344FDCdrugs

Pricerevision of existingdrugs underpricecontrol

Arevised 2015 list of drugs under price control

OutlookThe size of the Indian Pharma is expected to touch US$ 48 billion by FY2018 and US $55 billion by FY 2020 as against the

current size of US$18 billion. The government of India has released ‘Pharma Vision 2020’ aimed at making India a global

leader in end-to-end drug manufacture. Approval time for new facilities has been reduced to boost investments. The

government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic

drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies.The recentsharp decline in stocks of Indian healthcare companies reflects investors’ concerns about the likely impact on earnings.

Although, the picture for Pharma companies remains good in the medium term, a lot depends on their ability to get the US

sales growth back on track. Failing that, the effect of various recent headwinds witnessed may have a magnified effect on

their earningsandstockprices.

Preferred Stocks Ajanta Pharma Ltd.

APL is mainly into exports as well as domestic formulations. As of FY15, the exports: domestic formulation ratio was at

65:35. Domestic branded formulations constitute 32.7% of the total consolidated turnover (FY15). The focus on specialty

therapies and niche products led APL to post strong growth at a CAGR of 29.6% in FY11-15. APL is currently deriving

almost its entire export revenues from emerging regions like Africa (Franco Africa), Asia and LatAm having a presence inmore than 35 countries. Overall export formulations have grown at a CAGR of 31.4% in FY11-15 to ` 978.1 crore. The

company is entering into a stretchedphase of capex ` 700-800 crore spreadacross two-threeyears) to bolster thedomestic

business aswell asexports franchise, especially theUS.

Granules India Ltd.

The company intends to expand API capacities of Paracetamol, Metfomin and Guaifenecin by 25-30%, 3.5x and 2.7x,

respectively, which will support both its base and emerging businesses. In FY16, GIL has also increased its PFI capacity by

38-40% to 18,400MTPA. This debottlenecking is likely to support 16-18% PFI revenue CAGR over the next two years.The

company is coming up with a Greenfield multi-product API capacity at Vizag to support the growing need of internal

consumption and new filings. The company has invested heavily in R&D. With the acquisition of the Virginia facility in the

US, it now has two R&D centers - one in Vizag for developing normal ANDAs and one in Virginia for developing complex ANDAs.

CMP*(`)Company FV (`) P/E (x) P/BV (x) D/E Ratio(x)EBIDTA

(%)ROCE

(%)RONW

(%)CFO

(` in Cr.)

Granules India

Ajan ta Pharma

1

2

128

1498

25.68

35.19

5.93

15.68

1.18

0.14

16.04

34.42

18.58

55.98

23.1

43.2

145.33

279.42

CMP* as on 22/04/2016Source: Capitaline,


9/36

Wonderla Holidays Ltd.


“ Accumulate ” CMP : ` 382 TGT : ` 498Company Basics

BSE ID

NSE Symbol

Group

EQUITY (` in Cr.)

MKT.CAP(` in Cr.)

538268

WONDERLA

B

56.50

2182.90

Financial Basics

FV ( )

EPS ( ) (TTM)

P/E (x) (TTM)

P/BV (x) (TTM)

BETA

RONW (%)

`

`

10.00

10.41

37.11

5.51

0.6705

20.00

Investment Rationale

Share Holding Pattern

Holder's Name

Foreign

Institutions

Promoters

Govt. Holding

Public & Others

Non PromoterCorp. Hold.

% Holding

12.384.38

70.99

0.00

9.01

3.25

ROI : 30%

Valuations

WONDERLA is trading at ` 382.We recommend “Accumulate” withtarget price of ̀ 498, valuing stock30xFY18E EPS of `16.62.The stockcurrently trades at 32.47x of FY16E,27.93xof FY17E and 22.98x of FY18E.

Investment Horizon : 12 to 15 Months

Company OverviewWonderla Holidays is one of the largest operators of amusement parks in India, which

owns and operates two parks under the brand name “Wonderla”, situated at Kochi ,

Bangalore, Hyderabad. In FY16, it had a cumulative annual footfall of . Company has

also developed theWonderla Resort inBangalore, a Three Star leisureresort, next to its

amusementpark,comprisingof 84 luxuryrooms.

Investment rational

WHL is a key player in IndianAmusement Park IndustryWHL is the largest amusement park company in Indiawith over a decade of successful

and profitable operations. It owns and operates three amusement parks under the

brand name Wonderla in Kochi, Bengaluru, Hyderabad and is coming up with a fourth

park inChennai (to beoperational byFY2019).

WHL’s theme parks are a value-for-money weekend entertainment option for people.

Theticketcharges of `600-1,050perpersonforentertainmentof eight toninehours is a

value proposition compared with the`200-500 spent on watching a movie in a multiplex

(entertainment for2.5-3.0hours).

Thus, the value-for-money entertainment option and proximity to southern cities

provide WHL a great edge over the other theme and entertainment parks in the key

southern towns.

Wonderla’s Bangalore amusement park has been ranked No.1 in India while its Kochi

park has been ranked No.3. InAsia, Wonderla Bangalore is ranked No.7 and Wonderla

Kochi is rankedNo.13among thetop25 amusementparks.

WONH is one of the few parks in India which is profitable due to its operational

efficiencies, in-house ride manufacturing capability and relatively less capex

requirement for expansion. It has positioned as a “value” park which allowed it to grow

with lowercapex.


10/36


C o m p a n y A n a l y s i s

7


At tract ions and Innovations- key growth driver for Amusement Park Operator Visitor experience, higher footfalls, frequent visits and Per ticket revenue are largely depend on attraction offered by

operator in dry and water rides with innovation. WHL has more than decade experience as amusement park operator and

added various attractions time to time to attract new -age visitors, 2-3 attractions per year in various categories. Other big

operators in Banglore like NeeladriAmusement and WaterParks (45), Fun World (40) have lesser attractions as compared

toWHLandvery less park in Banglorewhereboth waterand land basedridesavailable.

Variousattractions launchedduring theyears :

FY14:

1)XDMAX: This isa virtual land ride wherevisitor experience 3D film with physicalandenvironmental effects.

2)MiniCocoCups : This isa ride is for kidswhich resembles like a set ofcup and saucer.

3)Fire Brigade andMagicPlane forkids andfamily respectively.

FY15:

JungleLagoon: TheCompany hasstarted a newwaterattraction at BangalorePark in FY15. Itsan large jungle-themed

waterattraction with special features like soft flooring,shallow water levelsandfive uniquewater slidesanda large

waterplay tree-houseto increase visitor experience.

FY16:

1)RECOIL& KORNETO: Thecompany hasintroduced RECOIL-India’s first ever reverse looping RollerCoaster ride

anda thrilling waterslideattractions—KORNETO.

Footfalls ( In Lacs ) ( Park + Resort )

FY10 FY11 FY12 FY13 FY14 FY15

30.00

25.00

20.00

15.00

10.00

5.00

0FY16

16.12

20.28 22.5923.40 22.91 23.40

23.87

Location Bangalore Kochi Hyderabad

Total No. of Rides

No. of Wet Rides

No. of Dry Rides

59

20

39

62

23

39

43

18

25

Source: Company


11/36


Ample of Land available to expand existing parks

Availability of Land is an important growth driver of Amusement park as parks require huge land at initial stage and forfurther development in existing place. Not only rides but peripheral infrastructure like resorts , restaurants and integrated

parks can be easily developed at existing land. Ample of land helps to create more revenue streams as Global Park

operatorsearns35-40%formnonticket revenue ascompared to India’s 18-20%.

WHL has huge land parcel available at Bangalore, Kochi and Hyderabad within the proximity of city area and is in free hold

mode. Company’s land acquiring process is in progress to develop new park in Chennai. This can help to increase visitor

experience and can be help to generate more non ticket revenue. Company’s Bangalore park has already a three star

leisureresort with occupancyrate of 40-45%andhasfive restaurant withinthepark.

Company has generated ` 10.12 Cr. in FY15 (v/s ` 6.56 Cr. in FY14 and ` 5.94 Cr. in FY13) from resortdivision at Bangalore

Parkandgenerated` 5.22 Cr. inFY15 from restaurant revenue ( v/s4.67 Cr. in FY14).

Other parks in Bangalore like NeeladriAmusement and Water Parks (30 Acres), Fun World (22 Acres ) , GRS Fantasy Park

(30Acres)have less land parcelavailable ascompared toBangalore

Location, Proximity and easy connectivity to CityProximity to city is another key element for higher footfalls and for popularity in amusement park. WHL’s Banglore park is

situated only 28 KMS away from Bangalore and between Bangalore & Mysore city. Bangalore park is also near to Railway

station ( 28 KMS ) and Majestic bus station. Company’s Kochi park is situated at Pallikara about 15 Kms away from Kochi

City Center and very near to airport , Railways station and bus station , only 20 Kms away from park. Company’s newly

opened Hyderabad Park is near to 28 KMS from city and closer to outer ring road. Surprisingly, WHL’ s 18-20% footfalls

are coming from other states like Tamilnadu, Andhra Pradesh and other near by states on strong popularity of the

amusementpark.


8

Location Bangalore Kochi Hyderabad

Total Land Available (In Acres)

Developed Land (In Acres)

Land Availability for fu ture development ( In Acres)

81.75

39.20

42.55

93.17

28.75

64.42

49.50

27.00

22.50

Year FY15

Footfalls - Region wise Break Up ('000)

FY16

Kerala ( Kochi)

Karnataka ( Bangalore )

Tamilnadu

Andhra Pradesh

Others

4.70%

76.00%

9.70%

5.20%

4.30%

5.90%

73.40%

11.20%

5.60%

3.90%

Source: Company

Source: Company


12/36




9

WHL has strong focus on non-ticket revenue and " In Park Spending”

The Indianamusementparks generate a major share 75-80%of their revenues from admission tickets which is significantlyhigher as compared to international parks (50% total revenue).The remaining revenue comes from non ticket revenue and

this includes sale of products (F&B, Merchandising ) and other services like restaurant revenue, shop revenue and room

rental collections. Indianparksareheavily dependedonadmissionfees.

Thenon-ticketing revenue segment constitutes only ~20% of WHL ’snet revenue, as compared with 50%contribution in the

case of international amusement parks. This indicates the huge existing opportunity to grow the top line through this key

segment.There isstrongpossibility of generating more revenue streams.

WHL focuses on “Integrated Parks” to reduce this dependency on ticket revenue. Globally, integrated parks are in favor

where amusement parks include other services like resort, F&B centers , retail centers and merchandising offerings. In

India integrated parksarerelatively newconcept andslowlygainingtraction in India.

In March 2012, WHL has established resort in itsBangalore As very fewparks in India have accommodation facility, totalcontribution fromaccommodation related revenues is only 2%.with risingdisposable incomes, the in-park spending can

increase significantlyover thenext fewyears.

Accommodation-related revenues contribute a meagre ~4% to Wonderla’s top line, compared with 35-37% contribution in

the revenue mix of a typical International Amusement Park. This displays the considerable value which can be potentially

tappedbypositioning of Parksasa holiday destination.

Revenue Composition : India Revenue Composition : Global

75-80%

2%

18-23%

35-37%

35-37%

32-35%

Revenue Stream ( % of Total Revenue)

Entry Fees

Resort and Other Rentals

Foods / Beverages / Merchandising

13.53 16.4

26.56

32.39

47.50

34

FY11 FY12 FY13 FY14 FY15 9MFY160

10

20

30

40

50

Non-Ticket Revenue ( Rs. in Cr.)

13.0211.99

22.51

11.41

18.54

14.7

Sales of Produc ts (Rs in Cr. )Sales of Services (Ex-Entry Fees) (Rs. in Cr.)

25

20

15

10

5

0FY13 FY14 FY15

Source: Company


13/36


WHL has started to focus on "OneDay Outing" to "Holiday Destination Park"

Globally, Positioning of Amusement Parks as a holiday destination, rather than as a “one-day outing”, encourages longerstayand generatessignificant revenue fromthehotel/resort.

Wonderla has already developed a three-star 84-room resort attached to its Bangalore park with the aim of creating India’s

first holiday destination park where families can come and relax, soak in the atmosphere, explore the park and city at a

leisurelypace andgain a trulycomplete andwholesomeentertainment experience.

As net spend on entertainment and leisure increases, industry models from U.S. and Europe will be replicated in India.

Parkswill market themselves asa holiday destinationandtherevenue mixwill also align itselfwith international peers.

“ WonderlaHyderabad”- next feather in Wonderla’s kitty'Wonderla', the third theme park from Wonderla Holidays in the country and the first in the State, is built in 50 acres of land

with an investment of Rs. 250 crore. It has 43 attractions, which include 25 land based and 18 water based rides.A reverse

looping roller coaster imported from Netherlands, and space themed flying theatre that is yet to be opened, would be the

major attractions. Management plans to launch a fourth park in Chennai at a cost of Rs. 300 Cr. , that wouldbe their biggest

themebasedamusementpark.

In-housemanufacturing brings cost efficiencyCompany as developed an in-house manufacturing facility in Kochi to manufacture/construct amusement rides and

attractions, apart from those being procured from manufacturers within and outside India. The in-house manufacturing

facility enables thecompany to implement innovative ideasandconcepts.

Inhouse manufacturing benefits WONH with certain cost efficiencies such as saving on import duties and other costs,

besides improving the efficiency in rides maintenance. Management indicated a cost saving of ~30% compared to

purchasingfroman outside vendor.

Strong operating experience- a key requirement as Operator WHL ’s management has rich operating experience in operating the park, which is the key requirement for success in this

industry. The first park was opened in Kochi in 2000 and the next one in Bangalore in 2005. Thus, promoters have over 14

years of rich and successful experience in park operations. Amusement parks operate for 365 days from 11am-7pm and

alcohol-based beveragesarenotallowed inside.

Strong competitive advantage- High entry barrier Development of large amusement parks typically require huge investment involving land acquisition, establishing of

infrastructure andrides,and regular investment in creation of newrides. Dueto itshighly capital intensive nature, achieving

the required footfall becomes highly critical, especially in newly developed parks, in order to break-even. ~250 Cr. capex is

required to established an amusement park .Companiesexisting parks of Wonderla at BangaloreandKochi aregenerating

sufficient revenue andhave witnessedsteadygrowthin footfallsover theyears.


10


14/36

11



Amusement Park Industry is st il l in nascent stage in India

The Global Parks industry earned total revenue of $28 billion in 2012, which is expected to touch $29.5 billion by 2015.There are more than 800 parks the world over, marking an attendance of over 600 million visitors each year. United States

is the largest market with more than 400 parks with an annual attendance of 300 million, followed by Europe with

approximately 250parksandattracting 165millionvisitorsa year.

Indian Amusement Park IndustryThe Indian Amusement Parks Industry is in its incipient stage. It is growing rapidly and witnessing robust development

year on year. Currently, against a 1.2billionpopulation, India hasabout 165parks.Theratio of “park-to-people” is very low

in India, especially compared to the developed markets. India currently constitutes only about 1.7% of the global parks

industry in termsof revenue.

Classification of Indian Amusement Parks IndustryThe 165 amusement parks currently operational in India can be broadly categorized as small, medium and large parks.

This essentially depends upon parameters such as capital investments, annual revenue, number of rides, land area, and

ticketprice,amongothers. Of thetotal operational parks,only 10%canbecategorizedas largeparks.

Key growth drivers are :

Increased Discretionary Spending

The share of discretionary spending in India (rent, fuel & power, furniture, medical care, transport & communication,

recreation & education) is seen increasing from 59%in 2010 to67%by 2020. Spending on recreation and leisureactivities

is also expected to rise significantly. Leisure spending is projected to almost double from ` 4,892 billion in 2014 to Rs.

8,983.5 billion in2024– a CAGRof 6.3%.

Strong Growth Potential

Growth prospects for the amusement park industry are strong, with a 15-18% CAGR projected over the next few years.

Positive demographicsof a country like India offers a substantial potential customerbase forthe industry.


Region

Global Market Share

US Latin America Canada Asia PacificEMEA

26%21%2%1%50%

No. of Parks Annual Visitors

~ 15

~ 50

~ 100

More than 0.5 million

Between 0.3 to 0.5 mil lion

Less than 0.3 million

Type

Large Parks

Medium Parks

Small Parks

Source: Company


15/36



Financial Analysis :

Revenues and earnings to grow at over 21%each over FY2015-18:With a steady improvement in the footfalls, the Hyderabad park getting operational, a strong growth in the non-ticket

revenues (F&B andproducts sales)andan 8-10% increase in theannual ticketprice,WHL’s revenues areexpected to grow

at a CAGR of 21% over FY2015-18. WHLhas an operating profit margin of about 45%, which is better than that of some of

themature international amusement park companies. The operating profitmargin is more or less expected to remain stable

in the comingyears (barring FY2017when the OPM isexpected todeclinedue toa higher operationalspending towards the

Hyderabadpark).

Stablebalance sheet, free cash flow positiveDespite an asset heavy model and a long pay-back period, WHL’sbalance sheet has remained in a comfortableposition for

the past few years. The debt/equity ratio has not gone up above 0.2x in the last four fiscals (remained at 0.03x in FY2015).

The free cash flows have remained positive and improved from Rs6.2 crore in FY2013 to Rs55 crore in FY2015, providing

visibility of better operating efficiencies of the company. The Hyderabad park (capital expenditure [capex] of Rs250 crore)

will be funded through a mix of internal accruals and Rs180 crore raised through an equity issuance. Thus, the balance

sheet isexpectedtoremainstable in the nearto medium term.

Key Concern :

A signif icant decline in foot fal ls:

Any significant decline in footfalls due to environment hurdles (heavy rains, flooding affecting the infrastructure)or epidemic

breakthroughs (such asswine flu) will significantly affect therevenue growth ofWHL.

Competition & Concentrated RevenueStream :

Any competition which forces the company to reduce ticket prices will have an adverse impact on its financials.

1000.00

800.00

600.00

400.00

200.00

0.00FY11 FY12 FY13 FY14 FY15

449.80 506.70

585.30681.00

796.90

Average Revenue Per FootFal l (Rs.)

FY14 FY15 FY16E FY17E FY18E

154182

220

266

322350

300

250

200

150

100

50

0

Net Revenue ( Rs. in Cr. )


16/36

13




FY 12

0.24

0.16

0.6

69.19

491.87

1.1

40.34

50.51

40.29

44.27

36.46

FY 13

0.2

0.25

0.61

59.55

399.57

1.06

21.34

46.67

38.08

40.51

31.44

FY 14

0.17

0.61

0.62

49.96

370.19

0.97

31.16

47.54

38.95

37.62

29.56

Debt-Equity Ratio (x)

Current Ratio (x)

Fixed Assets Ratio (x)

Inventory Ratio (x)

Debtors Ratio (x)

Total Asset Turnover Ratio (x)

Interest Cover Ratio (x)

PBIDTM (%)

APATM (%)

ROCE (%)

RONW (%)

FY 15

0.08

0.78

0.69

48.89

427.93

0.66

34.31

50.21

41.31

27.36

20

Consolidated Key Financials

FY 12

42

93.76

116.69

22.47

207.8

-17.04

5.95

22.99

139.68113.13

113.13

1.39

113.23

54.12

0

57.14

56.01

45.58

44.45

30.04

30.04

FY 13

42

119.95

142.44

20.97

242.03

-14.79

9.6

24.38

166.82137.85

137.85

1.52

137.97

67.57

11.99

64.33

61.87

52.49

50.03

33.59

33.58

FY 14

42

149.93

175.66

23.88

255.33

3.37

28.86

25.49

201.15153.63

153.63

2.41

153.6

73.91

17.42

73.03

71.11

59.83

57.91

39.89

39.91

Equity Paid Up

Networth

Capital Employed

Total Debt

Gross Block (Excl. Reval. Res.)

Net Working Capital ( Incl. Def. Tax)

Current Assets ( Incl. Def. Tax)

Current Liabilities and Provisions ( Incl. Def. Tax)

Total Assets/Liabilities (excl Reval & W.off)Gross Sales

Net Sales

Other Income

Value Of Output

Cost of Production

Selling Cost

PBIDT

PBDT

PBIT

PBT

PAT

Adjusted PAT

FY 15

56.5

356.44

373.61

15.13

269.52

-7.43

17.54

24.98

398.59181.87

181.87

10.25

182.45

87.36

18.77

91.32

89.13

75.13

72.94

50.63

51.09

Consolidated Key FinancialsKey Financials

Ratio Analysis

( ` in Cr


17/36www.jhaveritrade.com | www.jetrade.in

3DAYSFREE TRIAL

Open Trading cum Demataccount & get

For More Details Give Missed Call

08049336177

Register NowConditions Apply*

Get 10% Extra Benefit for Trade through Mob


18/36

15

Fundamental Stock Update


STOCK UPDATE

S e c t o r U p d a t e Financial Basics

FV (`)

EPS (`)

Book Value (`)

P/E (x)

P/BV (x)

52 Week High (`)

52 Week Low (`)

Equity ( ` in Cr.)

MKT.CAP(` in Cr.)


1.47

24.00

1.61

66.99

5.93

New DevelopmentsDemand is expected to remain good

After subdued demand and realization in the past few quarters, optimism started

setting in after the Budget. The government outlay to the infrastructure sector (40 per

cent of cementconsumption)andtherural economy bodeswell.

March is expected to remain good

Volume growth for many companies is expected to be higher in the March quarter, led

by demand pick-up in the north, west and central India, and price recovery. March

quarter results, while expected tobe better than that of theDecember quarter, maynot

fully reflect benefits of improved realizations as most price increases have come inMarch.Average sellingpricesare seen down six-eight percent year-on-year. This will

be eased bystrongvolumegrowth.

Valuations

we maintain Accumulate rating with a revised target price of ̀ 650 /share (i.e. at 10x

FY17E EV/EBITDA,$ 85/tonneonFY17E capacity (11.7MT).

CMP: ` 565 Target: ` 650 “ Accumulate ”JK Cements Ltd.

Foreign

Institutions

Non Prom.

Promoters

Public & Others

10.00

80.94

693.84

40.41

4.71

3454.90

2531.00

274.43

89769.25

Financial Basics

FV (`)

EPS (`)

Book Value (`)

P/E (x)

P/BV (x)

52 Week High (`)

52 Week Low (`)

Equity ( ` in Cr.)

MKT.CAP(` in Cr.)

Share Holding Pattern18.43

7.56

62.77

11.18

0.06

New Development

UltraTech cementing a stronger futureUltraTech’s definitive agreement with Jaiprakash Associates (JPA) to buy the latter ’s

21.2-million tonnes per annum (mtpa) cement capacities is positive for India’s largest

cement producer. This is a slight change compared to the February memorandum of

understanding (MoU) between the two companies, wherein UltraTech was to acquire

22.4 mtpa capacities. The new deal now leaves out JPA’s Karnataka-based 1.2-mtpa

plant,which is in closeproximity toUltraTech’sMalkhed plant.

Nevertheless, theenterprise value of ̀ 16,370 crore ($115 per tonne) is attractive and

lower than the $122 UltraTech had paid for JPA’s Gujarat-based assets. The

acquisition, which is likely to be completed in 12-15 months, will take UltraTech’s

overall capacity close to90mtpa.

Valuation

At the critical juncture demand recovery, UTCEM’s strong focus on growth and cost

efficiency make it most predictable play. Impact of JPA deal would be contingent on

paceof recoveryof the sector. It is a strongbet on the cycle upturn, and in our view, the

success in asset creation should overshadow any near-term concerns for long-term

investors. Wevalue UTCEMat` 3,850(13xFY18EEBITDA; USD220/ton).

CMP: ` 3172 Target: ` 3850 “ Buy”Ultratech Cement Ltd.

Foreign

Institutions

Non Prom.

Promoters

Public & Others

10.00

17.63

231.23

35.39

2.70

745.00

425.00

69.93

4363.63


19/36


STOCK UPDATE

Fundamental Stock Update

Financial Basics

FV (`)

EPS (`)

Book Value (`)

P/E (x)

P/BV (x)

52 Week High (`)

52 Week Low (`)

Equity ( ` in Cr.)

MKT.CAP(` in Cr.)


21.39

20.62

8.68

16.24

33.07

Management aims to double balance sheet in threeyearsDCB is embarking on aggressive branch expansion taking its total to 300+. The

management has guided at doubling the bank’s balance sheet in three to four years.

We estimate the credit book will grow at 22% CAGR in FY17-18E to ̀ 19157 Cr. The

bank is aiming to broadly maintain its current credit mix of 40% retail, 15-20% SME,

15%agricultureand20-25%corporatein thelong term.

Branch expansion strategy to keep cost-to-income ratio elevated

With a view of laying thefoundation forfuture endeavourandcounter competition from

MFI who have been awarded small bank licenses, DCB in Q2FY16 announced a shift

in its strategy from stable growth to aggressive expansion. With a lag in revenue

accretion until new branches achieve break even, we expect profitability to remainsubdued in FY17-18E.

Valuation

We remain positive on the bank given the strong growth in earnings and well

capitalized and healthy balance sheet. At CMP, DCB Bank is trading at 1.35x and

1.20x FY17E and FY18E Adj. BV and 12.71x and 9.95x FY17E and FY18E EPS

respectively. We recommend BUY with a target price of ` 135 (1.8x of FY18E P/Adj.

BV).

CMP: ` 92 Target: ` 135 “ Buy ”Development Credit Bank

Foreign

Institutions

Non Prom.

Promoters

Public & Others

5.00

6.68

85.94

39.92

3.10

375.00

192.25

36.34

1938.01

Financial Basics

FV (`)

EPS (`)

Book Value (`)

P/E (x)

P/BV (x)

52 Week High (`)

52 Week Low (`)

Equity ( ` in Cr.)

MKT.CAP(` in Cr.)


21.39

20.62

8.68

16.24

33.07

Eveready Industries enters consumer appliances segmentEIIL announced its entry into the small consumer appliances segment tapping a new

growth area. In April, EIIL will go national with 60 products which include fans, food

processors, induction cookers, irons, OTGs, water heaters and electric

kettles. Theproductswill be unveiled with a grand advertisement campaign coinciding

with Diwali. According to Management, the process of looking beyond batteries has

begun and byMay-end, EIILwill be in a position tosee how it can leverage its brand to

enter other growth areas.Part of the sales would come through the distribution

channels of lighting and flashlight products that EIIL is presently in. It will be an asset-

light model whereby products designed in-house will be sourced out to Chinese and

domesticvendors

Valuations

We expect 16%revenue CAGR and 190bp EBITDA margin expansion over FY16-18,

driving 39%PAT CAGR.We maintain Buywitha targetpriceof ` 335(37% upside).

CMP: ` 243 Target: ` 335 “ Buy”Eveready Industries Ltd

Foreign

Institutions

Non Prom.

Promoters

Public & Others

10.00

6.84

60.83

14.33

1.60

150.90

68.40

284.55

2788.58

16


20/36

17

Fundamental Stocks


OPENFUNDAMENTAL

CALLS

O

p e n F u n d a m e n t a l C a l l s

Automobi le

Banks

Cement

Finance

Infrastructure

Ashok Leyland

M & M

Maruti Suzuki

Company CurrentReco

CMP*( ` )52 Week

High (`) Low (`) 3M

Abs olute Ret urn (%)

6M 12M

FaceValue

MarketCap P/E Dividend Yield

%

P/BV

(`) (` in Cr) (x) (x)

Capital Goods

ICICI Bank

Bank of Baroda

City Union Bank

DCB B ank

Havells India

TD Power Sys.

Inox Wind

Carborundum Uni.

Thermax

J K Cements

UltraTech Cem.

Dewan Hsg. Fin.

Repco Home Fin

PTC India Fin

Larsen & Toubro

Adani Ports

Ashoka Bui ldcon

Gateway Dis tr.

Al lcargo Logist.

VRL Logisti cs

Logistics

Hold

Hold

Hold

Buy

Hold

Hold

Hold

Hold

Buy

Buy

Buy

Hold

Hold

Hold

Buy

Hold

Buy

Buy

Buy

Buy

Hold

Hold

Buy

106

1327

3728

253

158

95

95

343

238

271

192

768

610

3276

200

655

39

1266

232

142

290

158

401

112.90

1442.05

4790.00

338.00

216.30

105.55

150.90

354.00

350.95

482.50

211.00

1148.00

745.00

3454.90

267.85

785.00

60.60

1888.00

374.80

221.00

399.70

217.75

479.00

63.80

1091.25

3193.25

180.75

109.35

77.80

68.40

235.30

195.10

215.00

150.10

715.00

425.00

2531.00

140.30

551.00

29.70

1016.05

169.15

111.30

205.80

128.00

261.05

22%

13%

-9%

7%

22%

21%

30%

13%

-11%

-12%

12%

-9%

20%

19%

6%

4%

12%

14%

6%

-26%

-6%

-13%

1%

12%

6%

-15%

-12%

-9%

7%

8%

33%

-17%

-32%

9%

-11%

-7%

13%

-15%

-5%

-21%

-16%

-26%

-13%

-15%

-3%

-2%

57%

13%

5%

-18%

-9%

-1%

-19%

23%

-30%

-36%

7%

-19%

-4%

21%

-11%

8%

-28%

-25%

-27%

-16%

-19%

0%

NA

1

5

5

2

2

1

10

1

10

10

1

2

10

10

10

10

10

2

2

5

10

2

10

30152

82388

112614

147091

36371

5695

2699

21408

791

6013

3620

9153

4264

89909

5830

4094

2215

117924

48005

2662

3153

3976

3654

8.64

3.19

4.63

1.74

0.83

1.95

1.55

11.77

1.60

4.32

3.33

4.26

2.64

4.27

1.23

4.62

1.30

2.88

4.46

1.43

3.41

2.08

5.69

33.96

28.76

35.34

12.51

9.65

13.45

13.87

61.42

41.17

16.67

27.33

46.31

34.58

40.48

8.31

28.70

6.19

26.66

18.37

25.72

23.90

15.02

34.38

0.42

0.90

0.67

1.97

1.95

1.15

0.00

0.88

1.11

0.00

0.65

0.91

0.66

0.29

1.38

0.23

2.54

1.28

0.47

0.91

2.41

0.63

0.94


21/36

Fundamental Stocks


OPENFUNDAMENTAL

CALLS

Pharmaceuticals

Company

Current

Reco CMP*( ` )

52 Week

High (`) Low (`) 3M

Abs olute Ret urn (%)

6M 12M

FaceValue

MarketCap P/E Dividend Yield

%

P/BV

(`) (` in Cr) (x) (x)

(*CMP as on 25/04/2016)

Torrent Pharma.

Sun Pharma.Inds.

Granules India

Ahluwalia Con tr.

J Kumar Infra

Garware-Wall Rop

SRF

AYM Syntex

Ambika Cot ton

Radico Khaitan

Jamna Auto Inds.

Bharat Forge

Omkar Spl.Chem.

Sadbhav Engg.

Eveready Inds .

Inox Leisure

Prabhat Dairy

Infinite Comp

Liberty Shoes

T.V. Today Netw.

CARE

Century Ply.

Hitech Plast

Mold-Tek Pack.

Torrent Power

H P C L

Skipper

Buy

Hold

Buy

Buy

Hold

Buy

Buy

Buy

Buy

Hold

Buy

Buy

Hold

Buy

Hold

Buy

Buy

Hold

Buy

Hold

Hold

Buy

Hold

Buy

Buy

Hold

Buy

1423

809

131

293

282

366

1348

105

871

92

141

794

184

286

257

208

118

216

174

317

1056

179

165

150

236

861

149

1718.40

1010.00

164.40

320.00

448.50

436.50

1498.85

163.15

1149.00

130.70

156.20

1331.75

249.90

370.00

375.00

275.90

169.00

275.80

283.25

350.00

1619.50

225.00

221.40

166.75

252.70

990.95

219.90

1135.00

704.00

75.00

188.20

233.65

172.00

899.00

85.50

706.05

78.70

88.00

720.00

138.35

197.15

192.25

145.15

71.00

122.20

125.00

165.00

883.00

135.65

80.75

81.28

136.75

556.05

117.00

2%

0%

7%

7%

-18%

5%

19%

-17%

8%

-18%

-4%

-2%

-6%

-7%

2%

-4%

2%

0%

4%

9%

-9%

9%

-3%

7%

11%

9%

-12%

-10%

-9%

-11%

14%

-27%

4%

4%

-4%

-4%

-8%

25%

-14%

-22%

-6%

-14%

-15%

-17%

18%

-17%

25%

-24%

-2%

59%

23%

31%

8%

-3%

17%

-15%

45%

15%

-14%

95%

34%

NA

0%

2%

31%

-34%

24%

-7%

-14%

27%

NA

-19%

-30%

47%

-34%

-18%

51%

42%

47%

38%

NA

5

1

1

2

5

10

10

10

10

2

5

2

10

1

5

10

10

10

10

5

10

1

10

5

10

10

1

24075

194668

2842

1965

2137

801

7737

414

512

1217

1119

18491

379

4899

1868

2005

1153

837

297

1891

3105

3967

283

416

11326

29141

1520

15.15

44.22

26.39

30.68

21.28

19.08

20.66

8.88

10.63

15.80

18.99

26.58

11.84

34.96

38.47

32.95

49.39

8.29

17.47

23.85

41.40

28.48

26.63

19.83

11.60

22.30

17.04

9.67

7.60

6.09

5.83

1.71

2.58

3.41

2.42

1.58

1.42

5.69

5.37

2.25

3.19

2.99

2.83

1.80

1.06

2.04

4.20

8.09

10.23

2.22

3.29

1.73

2.14

4.47

0.79

0.37

0.36

0.00

0.60

0.82

0.74

0.09

1.61

0.87

0.78

0.94

0.82

0.25

0.00

0.00

0.04

0.00

0.86

0.47

7.38

1.12

0.48

1.33

0.63

2.85

0.88

Realty

Textiles

Miscellaneous


22/36

19

JSL Top Mutual Fund Picks


Scheme Name

NAV*

(Div)

NAV*

(growth)

1 Year

(%) Since Inc

Top Equity Diversified Funds

Top Balanced Funds

Mid Cap Funds

Conservative Funds

Dynamic Bond Funds

Launch

Date

3 Year

(%)

5 Year

(%)

4-Mar-15

16-May-00

5-Feb-03

11-Sep-09

4-Apr-08

29-Jul-15

27-May-99

8-Oct-9510-Feb-95

7-Feb-11

02-Dec-13

30-Mar-07

9-Jul-10

17-Mar-08

1-Jul-94

31-Mar-96

26-Dec-08

21-Jan-15

29-Dec-06

29-Dec-09

31-Oct-03

31-Oct-02

16-Dec-10

04-Oct-07

10-Oct-14

9.64

149.41

169.69

22.82

31.95

9.99

108.97

167.46564.35

19.67

14.71

26.54

30.97

34.34

97.86

12.13

37.06

10.99

34.70

29.91

63.28

180.80

16.72

21.13

10.63

NA

20.33

15.76

22.63

21.52

NA

16.96

20.6418.54

21.56

NA

30.15

34.14

28.40

30.80

22.29

20.49

NA

22.53

27.60

11.93

17.85

15.42

15.27

NA

NA

11.61

10.54

14.20

14.15

NA

10.42

15.1312.36

13.74

NA

18.49

23.07

19.39

18.06

14.04

13.1

NA

14.63

19.26

9.28

10.70

11.02

10.72

NA

-3.20

18.50

22.21

13.31

15.54

-0.13

15.17

16.4420.95

13.9

17.62

11.37

21.60

16.47

11.02

19.83

19.61

7.94

14.30

18.97

15.94

23.97

10.10

9.15

4.12

Top Saving Funds

*NAV as on 18/04/2016

9.64

23.59

33.44

18.46

16.37

9.99

22.94

71.04133.37

17.24

12.91

20.58

22.02

31.14

31.98

60.70

13.36

10.99

17.61

19.56

37.19

20.32

15.13

17.66

10.44

Launch Date NAV

(Growth) YTM (%) 3 Mon ths (%) 6 Mon ths (%) 1 y ear (%)

-4.65

-0.24

-2.18

-0.91

-2.47

NA

-0.34

-2.230.01

0.94

-7.43

0.96

3.77

-4.43

-6.09

1.95

-9.45

2.21

-2.50

-4.73

2.47

-6.48

0.48

-3.12

-1.22

14.13

9.02

15.62

14.24

6.87

4.25

8.33

6.36

7.90

5.86

9.21

6.87

M u t u a l F u n d P i c k s

DHFL Pramerica Diversifi ed Equity Fund

DSP BR Opportuni ties Fund

Kotak 50

Kotak Select Focus

Mirae Asset India Opportuniti es Fund

Mirae Asset Prudence Fund

DSP BR Balanced Fund

Tata Balanced FundBirla Sun Li fe Balanced'95 Fund

L&T India Prudence Fund

DHFL Pramerica Midcap Opportunities Fund

Kotak Emerging Equity Scheme

Mirae Asset Emerging Bluechip Fund

Religare Invesco Mid & Smallcap Fund

Tata Midcap Growth Fund

Tata India Tax Savings Fund - Div

IDFC Tax Advantage

Motilal Oswal Most Focused Long Term Fund

Religare Invesco Tax Plan

Axis Lon g Term Equ ity Fun d

Franklin India Dynamic Pe Ratio Fund

ICICI Prudential Dynamic Plan

Principal Smart Equity Fund

Religare Invesco Dynamic Equit y Fund

IDFC Dynamic Equity Fund

Ax is Dynamic Bond Fund

IDFC Dynamic Bond Fund

ICICI Pru Dynamic Bond Fund

Reliance Dynamic Bond Fund

27-Apr-11

1-Dec-08

12-Jun-09

15-Nov-04

15.39

17.96

17.09

20.30

8.13

7.71

8.59

8.37


23/36


Selected Macro Economic Indicators

45000

40000

35000

30000

25000

2000015000

10000

Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15

3570435704 32690 33068

3579435794

3220930937

Import & Export (in US $ Million)

2 3 8 8 4

2 1 9 9 8

2 1 2 7 4

2 1 2 7 2

2 3 1 4 3

2 1 4 0 8

Oct-15

2 2 2 6 3

2 1 7 2 0

Index of Industrial Production (%)12

10

8

6

4

2

0

-2

-4

2.48

3.01

2.51

4.24 4.34

6.26

3.84

-3.2 -1.34

9.81

Total Foreign Exchange Reserves (US $ Billion)

342.00

344.00

346.00

348.00

350.00

352.00

354.00351.48 351.83

347.20

15-Jan-16

347.56

22-Jan-16

349.15

29-Jan-16 5-Feb-16 12-Feb-16

346.78

26-Feb-16

29796

2 0 0 1 4

Nov-15

33961

2 2 2 9 7

Dec-15

28714

2 1 0 7 5

Jan-16

19-Feb-16

350.86 350.36

4-Mar-16

353.4

11-Mar-16

355.94

18-Mar-16

27280

2 0 7 3 9

Feb-16

Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16

-1.53

355.54

25-Mar-16

359.75

1-Apr-16

359.91

8-Apr-16

360.25

15-Apr-16

356.00

358.00

360.00

Mar-16

27790

2 2 7 1 9

1.99

Feb-16


24/36

21

Selected Macro Economic Indicators


M a c

r o E c o n o m i c I n d i c a t o r s

87

6

5

4

3

2

1

D e c - 1 4

J a n - 1 5

F e b - 1 5

M a r - 1 5

A p r - 1 5

M a y - 1 5

J u n - 1 5

J u l - 1 5

A u g - 1 5

S e p - 1 5

O c t - 1 5

N o v - 1 5

D e c - 1 5

J a n - 1

6

F e b - 1

6

5.865.11

5.375.17

5.79 5.74

4.37

6.10

4.35

5.14

6.72

6.326.32

Consumer Price Index (%)

Wholesale Price Index (%)

-2.17

-2.33 -2.43-2.2 -2.13

-3.79

-4.85-4.54

-3.81

-0.73

-1.99

-0.9

0

-1

-2

-3

-4

-5

-6

Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15

FII (in Billion) DII (in Billion)250

200

150

10050

0

-50

-100

-150

-200

117 11586

-58 -33

120

537

-169

-65

10367

-14

-71

85

-28

63

123

-122

Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16

5.91

Jan-16

-0.91

Feb-16

Feb-16 Mar-16

-55

105

-157

211

5.53

Mar-16

-0.85

69

-17

Apr-16


25/36


Differential Voting Right Shares

Meaning

The DVR share is equity shares with lower voting rights as compared to the ordinary equity shares holders. As ordinaryequity share holders can give same number of vote as the number of shares hold and take the part in the decision making

process of the company. But DVR share holders can not castthe samevoteas the shareshold.

Purposeof DVRHostileTakeover

A takeover which goes against the wishes of the target company's management and board of directors.

DVR prevents themajorharm of hostiletakeover.As more numberof sharesare availablepublicly, there is a strong

possibilityof hostiletakeover.

As the voting right is less, so it can prevent hostile takeover.

Dilution of Voting Right

As in ordinary shares inventor can cast as many as vote, the shares posses.

It will difficult for thecompany to take decision if there isdifference of opinion byvarious shareholdersby therevoting

right that caneffect thegrowth of thecompany.

DVRprevent dilution of VotingRight.

Strategic Investor and Fund Raising

Many biginvestorswant to investa huge amountof money forcapital appreciationandwant becomea part of companies

strategicdecision.These investorsarenotinterested in control of thecompany.

DVRwill help them to fulfill therepurpose.Through this company canraise huge amountof funds.

Global and Indian scenarioGlobally, issuing a DVRis nota new. Many international companies have already issuedDVR such as Google,Via come,

Roche , BMW , Samsung electronics and others , Berkshire Hathaway and others. Asper the Section 86 of the Companies Act, 1956 from 13/12/2000, the Indian company can issue DVRSshare for various corporate purposes. Tata Motors became

the first company which issued DVR in Indian capital market in 2008 after eight years of gap followed by Pantaloon Retail,

Jain Irrigation,Gujarat NRECoke.

Ordinary Share Holders

100 ordinary shares holds = 100 Voting Right( Applicable to all the company )

DVR Share Holders

100 DVR Holds = 1 voting right

Basic Difference


26/36

23

Differential Voting Right Shares


J S L C l a s s r o o m

Why should investors invest in DVR ?

Various DVRSissued by Indian companiesTataMotors

In November 2008, Tata Motors Limited issued 6.4 Cr. equity shares with differential voting rights as a part of its ` 4,145Cr. rights issue topayback theloan taken forthe acquisition ofJaguar-LandRover. Therightsissueportion comprising of

normal equity shares was priced at ` 340 per share whereas the DVRS with 1:10 voting rights were priced at ` 305 per

share, i.e., ata discountof10.29 per cent.

FutureRetail DVR

In February 2009, the company issued bonus equity shares with differential voting rights to the existing equity

shareholdersof thecompany in theratio ofonebonus DVRSforeverytenequitysharesheld.ThesebonusDVRS were

termedas ‘ClassB shares’.TenClassB sharesentitled theholders thereof tocast onevote.

ConclusionThe shares with inferior voting rights may be beneficial for the retail investors as these shares would not only be issued at a

discount to the prevailing market price of the normal equity shares but also provide better dividend yield. So the investors

interested in high dividedandcanwait forlong time forcapital appreciationcango forDVRS.

Advantages Disadvantages

High Divided : As Investors are not getting propervoting right, companies which are issuing DVR will givemore divided to DVR share holders as compared toordinary share holders.

For Example : Tata Motors gives 205% divided to DVRholders as compared to 200% to ordinary share holdersin FY12

Capital Appreciation : As the difference between theshare price of ordinary equity and DVR will be narrow ,

investors can sell their holdings and earn return on that.

Best instrument for Retail Investors : The investorswho are not interested in the voting or do not want totake part in the company’s decision making process cango for the DVR.

Avai lable at discount pr ice : Its available at discountprices as compared to ordinary shares.

Lack of Awareness : This is the new instrument for theinvestors so many investors are mot aware about it andits benefits and this leads to illiquidity in the stocks.

ROI is slow as compared to ordinary shares : Thelack of awareness and low liquidity will become hurdle totargeted price.


27/36

JSL Ideal Portfolio ( Small Cap )


Objective of Ideal Portfolio :

Theobjectiveof this portfolio is to generate long term capital appreciationby investing in concentrated portfolioof large capandgrowthoriented midcapcompanies. Thiswill help togeneratemeaningfulwealthforInvestors from EquityMarket.

Stock Selection Methodology : Based on various fundamental parameters andvaluationcheck along with certain themes

likeCyclical,BottomUp,Sector specific,PolicyInitiative/ push , Evergreen.

Key Risks : Macroeconomic / political conditionandsystematic risk, corporateperformance risk

Comparative Portfoli o Returns

Particulars Return Since Inception Particulars Return Since Inception

Notes : *CMP as on 25/04/2016., Price ** on recommendation and as on 01/01/2016 , Return since inception indicates

from 1st Jan -2016

Investment Horizon : 9-12 Months

Stock Weights Price** CMP* Target Potential UpsideSuggestions

Maruti Suzuki

KEC International

Bharat Forge

Ultratech Cement

Dewan Housing Finance

Sun Pharma

Inox Wind

Torrent Power

State Bank of India

Ax is Bank

VRL Logistics

Torrent Pharma

Ashoka Buidcon

Ah luwal i Cont racts

Everday Industries

Automobi le

Capital Goods

Casting and Forgins

Cement

Housing Finance

Pharma

Power

Power

PSU Bank

Public Bank

Logistics

Pharma

Infrastructure

Infrastructure

7%

5%

8%

7%

8%

7%

8%

8%

7%

7%

5%

8%

5%

5%

5%

Accumulate

Accumulate

Accumulate

Buy

Buy

Accumulate

Buy

Buy

Accumulate

Accumulate

Buy

Buy

Buy

Buy

Accumulate

4639

157

888

2824

236

815

360

181

228

450

432

1479

200

282

300

3734

126

796

3277

199

808

270

235

197

470

399

1426

142

291

255

5200

180

1200

3400

368

1041

488

280

325

620

457

1840

205

368

287

39%

43%

51%

4%

85%

29%

81%

0%

65%

32%

15%

29%

44%

26%

13%

Ideal Portfolio Return

Value Buy (100%)

CNX Small Cap

-6.34%

-15.43%

-9.34%

Nifty

Sensex

CNX Mid Cap

-1.84%

-1.36%

-2.75%

WeightsSector

Consumer Non-Durable


28/36

25

JSL Ideal Portfolio ( Diversified Equity )


I d e a l P o r t f o l i o

Objective : The aim is togenerate long termcapital appreciation from a portfoliothatis not partof the leading stocksby

market capitalization. The aim is to include and invests in companies that have immense growth potential as they areoperatingona smallerbase.

Stock Selection Methodology : Based on various valuation parameters and finding out early stage companies

based onsoundbusinessmodel andavailable at cheapvaluation

Key Risks :Small-cap stocks are not tracked closely by market/ equity analysts and that is why the real value of good small-cap stocks

can remain undiscovered for long. This makes investing in them risky. The risk associated with large cap funds also

associated with small cap ( see last page). Small companies are relatively weak in terms of governance, dividend policies

andprofessionalismof theboard.Thismakes them risky.

Stock Sector Weights CMP* Target Potential Upside

Diversified Equity Portfolio Allocation

Power

Pharmaceuticals

Banks

Infrastructure

Casting and Forgings

Housing Finance

Automobi le

Cement

Capital Goods

Consumer Non-Durable

Logistics

16%

15%

14%

10%

8%

8%

7%

7%

5%

5%

5%

Small Cap Portfolio Allocation

Textile

Computer - Hardware

Education

Food Processing

Pharmaceuticals

Printing and Stationery

Retail

Tyre

30%

10%

10%

10%

10%

10%

10%

10%

Notes : *CMP as on 23/04/2016.

Investment Horizon : 18 - 24 Months

Suggestions

AYM Syntex

Good Year

KPR Mills

KRBL

Garwale Wall Ropes

Smartlink Network

MPS

MT Educare

Shaily Engineering Plastics

Ambika Cotton Mil ls Ltd.

Textile

Tyre

Textile

Food Processing

Textile

IT- Hardware

Printing

Education

Capital Goods

Textile

10%

10%

10%

10%

10%

10%

10%

10%

10%

10%

106

507

857

215

365

103

689

173

607

871

223

868

1120

360

550

156

1150

220

890

1149

110%

71%

31%

67%

51%

51%

67%

27%

47%

32%

Accumulate

Accumulate

Accumulate

Accumulate

Accumulate

Accumulate

Accumulate

Accumulate

Accumulate

Accumulate


29/36

SRTRANSFIN ABAN

We have observed a double bottom formed on weekly charts. It’s avery strong bullish pattern. The stock has given breakout aboveneckline which is placed at 950 levels. The Directional moving indexhas given positive crossover and ADX has started rising on weeklycharts. We advise the stock to buy on every dip for a strong up movefromcurrent levels.

ICICI BANK

We have observed that stock has made lows in February and thenbounced back to test its 21 Day moving average at 100 Rs levels. Butagain stock given negative crossover in Stochastics and its ADX ismoving continuously above 40 levels suggests stock is weak andeveryriseshouldbe used topositionalsellthe stock.

We had observed a Rounding Top pattern on Monthly Charts. Arounding top represents a sell signal. The initial upwards trendbecomes exhausted as the demand for the stock dries up. Thereversal to the downward slope of the rounding top indicates thatdemand has tapered off and a surplus supply is present, basicallythere are more sellers than buyers. A rounding top represents abearish take onthe stock.

Wehaveobserveda Channel breakout onweeklycharts.The channelpattern consists of two parallel trend lines which serve as boundariesfor price action. The lower trend line serves as support and the upper trend line serves as resistance. Important note about channel is themore times thechannel’s trend lines arevalidated (pricetouches themandretracesto theoppositedirection), thestrongerthe pattern is.Thestock has given breakout above 210 levels.The pattern is confirmedwith rise involume.

SELL BTWN 220-230 TGT 170 SL 260

BANKINDIA

SELL BTWN 88-90 TGT 74 SL 98

BUY BTWN 210-220 TGT 300 SL 170BUY BTWN 1030-1050 TGT 1215 SL 950

Monthly Technical Picks - Equity



30/36

27

Monthly Technical Picks - Currency


M

o n t h l y T e c h n i c a l P i c k s GBP INR USD INR

We had said last month that Doji is formed and range for month is 94-98 for April month. On Monthly Chart, Stochastics was oversold lastmonth and the pair has made low of 93.70 and bounced back from93.70 to 98 levels. Moreover, Pair has been trading above its 50 daymoving average 94 and below is 21 Day moving average at 97.95,which shows that near to medium term trend is up. The short termmomentumisup andcangoto 99.50-100levels.

EUR INR

Pair has crossed 61.80 levels which was strong resistance till lastmonth on daily charts. The pair has given close above that level on

monthly closing basis. On weekly chart JPY INR pair is showingstrength and has strong support at 58.00 levels and on monthly chartJPY INR pair has strong support at 56.00 level. The upside targetremains 64.5-65 levels. The Pair is trading above its 21 Day Movingaverage (56.74) and50DayMoving average(57.42) levels.

EURINR has formed Bullish Candlestick pattern on Daily chartsindicating for upside movement. Moreover, Pair has been trading

above its 21 & 50 day moving average, which shows that near tomedium term trend is up. On broader basis, EURINR has been facingstrong resistance which comes at 76.30 level since last 3-4 weeks,which shows any close above this level, Pair could give good upsidemovement upto the level of 77.40-77.95. Meanwhile, Pair has goodsupport at 73.80 level which is a 100 week moving average, whichshowsthat short tomediumtermtrendis up.

Last Month, We had said that Pair is in strong uptrend in monthlychartsso will find support at 65 levelsand wecanexpect consolidationfor the pair between 65-67 in whole month. The pair has strongsupport at 66.30-66.00 levels and strong resistance at 67.10-67.30levels. The ADX had entered below 20 on daily and weekly charts sowe expect further consolidation between 66-68 levels for comingmonth till thereis breakoutoneitherside.

JPY INR


31/36

Monthly Technical Picks - Index


Nifty

The index opened at 7718, made a high of 7992, made a low of 7516 and closed the month at 7849. Last month we hadclearly mentioned that Nifty is in Uptrend above 7550 but it should face stiff resistance at 7700-7780 zone where supply is

expectedtocomeand if Nifty manages toclose above thiszoneonweeklyclosing basis, thennifty might head towards 7930

levels. The next crucial resistance is at 7970-8000 levels which is 50% retracement of fall from high of 9119 in Mar 2015 to

lowof 6825 inFeb 2016. Ifnifty manages toclose above thiszone for consecutively2 days thenNifty will beheading towards

8250 levels. Nifty is in uptrend and has strong support at 7700 levels. Stochastics indicator is suggesting positive

momentumtocontinue.We advisebuyondipsstrategyin largecapswith positional stop loss of 7700.

Bank NiftyThe index opened at 16099, made high of 17029, made a low of 15440 and closed the month at 16795. Last month we had

said that Banknifty should face stiff resistance at 16300-16400 zone where supply is expected to come and if Banknifty

manages to close above this zone on weeklyclosing basis, then it might head towards 17000-17500 levels. Banknifty made

high of 17029 level in April. Banknifty is in strong uptrend and buy on dips is recommended with positional stop loss of

16000. The crucial resistance remains at 17150 levels But Stochastics indicator is suggesting positive momentum to

continue.IfBankniftymanages tocloseabove that for2 consecutivedays, then thenext target remains 18000 levels.


32/36

Bullion

Bullion prices last week settled with gains where bullionpricesended with littlegains as traders were waited for further cluesfrom on interest rates from the Federal Reserve while Silver prices reached the 11 month top helped by optimism over Chinese growth, anda break above keychart resistance. Metal traders continued todigest relatively dovishcomments fromEuropean Central Bank president Mario Draghi regarding the likelihood of future easing measures from the central bank. Itcame after the ECB's Governing Council left its benchmark interest rate for the euro zone at a record-low of zero and itsdeposit rate unchanged at Minus0.4%. More critically, Draghi noted that the ECB could continue to hold interest rates atcomparative low levels beyond the expiration of a comprehensive €80 billion a month Quantitative Easing program inMarch, 2017. The decision came days before the start of the Federal Open Market Committee's (FOMC) two-day meetingon April 26-27. At the meeting, the Federal Reserve is widely expected to leave its benchmark Federal Funds Rate at atargeted range between 0.25 and 0.50%. Elsewhere, factory conditions in the U.S. remain soft as the PMI ManufacturingIndex flash reading for April fell 0.6 to 50.8, sharply below expectations of 52.0. The dollar remained higher against the yenon speculation the Bank of Japan was considering applying negative rates to its lending program for financial institutions,effectively starting to pay banks to borrow its cash. The precious metal lost momentum as the greenback began to climbfollowing inaction by theEuropean Central Bank (ECB)on Thursday. TheUS dollarbooked further gains, especiallyagainst

the yen, after rumors emerged on Friday that the Bank of Japan (BoJ) could add a negative loan rate to its arsenal nextweek. The BoJ has been charging lenders a 10-basis-point levy for parking cash, undermining profits in the financialindustry. Factory conditions in the U.S. remain soft as the PMI Manufacturing Index flash reading for April fell 0.6 to 50.8,sharply below expectations of 52.0. Nevertheless, April's flash reading represents its lowest level since the start of therecoveryof global financialmarkets. Gold demandin India improved this week as jewellery retailers reopenedstoresafterastrike, but the world's second biggest bullion market remained at a discount to the global benchmark as purchases acrossthe region were curbed by higher prices. Indian jewellers went on an indefinite strike since the start of March in protest overthe reintroduction of a sales tax on gold jewellery after four years. They started opening shops from last week. India's goldimports inMarchslumped 80.5 percent from a year agoto$973 million, thegovernment said.

Recommendation

BUYGOLD@ 28800 SL 28400 TGT 29500.BUYSILVER @39500 SL 38700 TGT 40800-41500

Energy

Last week crude oil prices ended with around 8.82 percent gains as prices notched their third straight week of gains asmarket sentiment turned more upbeat amid signs a persistent global supply glut may be easing. Strong gasolineconsumption in the United States, increasing signs of declining production around the world and oilfield outages haveunderpinned a return to investment in the sector. Traders also pointed to strong crude imports to China in March assupporting prices. Still, some warned that the oil market was still far from balancing supply and demand. Falling output,especially in the United States, where many producers have reeled from an up to 70 percent oil price rout since mid- 2014,has helped to lift the market. U.S.energy firms cut oilrigsfor a fifth week ina row to the lowest level since November2009, oilservices company Baker Hughes said. Despite the recent rally, oilmarkets remain oversupplied as between 1 millionand 2million barrels of crude are being pumped out of the ground every day in excess of demand, leaving storage tanks aroundthe world filled to the brimwithunsold fuel.Russia and SaudiArabia have since said they would consider producingmoreoilif they seesufficient demand. Natural gashadtheir best week of theyear gaining by 11.67 percent on signs that summer-liketemperatures in the East will help trim a supply glut. Above-normal temperatures across most of the lower 48 states will risein the South at the start of May, stoking demand for the power-plant fuel to run air conditioners. Preliminary pipeline datashows that stockpiles may increase by about 55 billion cubic feet this week, “way lower” than the year-earlier gain of 84

billion. Agas surplus to the five-year average has narrowed for two straight weeks from a four-year high on an unexpectedlychilly start toApril. Futures extended gains after the government’s midday Global Forecast System showedcooler weather late next week in the Midwest to the East followed by an unusually warm start to May in the South, adding both heating andcooling demand, according to Commodity Weather Group LLC. Gas inventories totaled 2.484 trillion cubic feet on April 15,48.5 percent above the fiveyear average, according to the U.S. Energy InformationAdministration. Inventories are on trackto reach an all-time high of 4.112 trillion by the end of October after the contiguous states experienced an unusually warmwinterand production rose toa record.

Recommendation

BUYCRUDEOIL @2800SL 2680TGT 2950-3080.BUYNATURAL GAS@ 138 SL 130 TGT 145-152

29

Monthly Technical Picks - Commodity


M o n t h l y T e c h n i c a l C o m m o d i t y


33/36

Balanced Funds


Balanced funds are a combination of equity and debt. Equity oriented Balanced Funds maintain at least 65% of exposure in

domestic equities and can invest upto 35% in debt securities depending upon the fund objective. In fact from the taxationperspective, the long term capital gains tax (Investments period of more than one year) is free for this category of Balanced

Funds.The dividendsearnedon these funds arealso taxfree.

There are many types of Hybrid or Balanced Funds like MIPs, Asset Allocation Funds and Capital Protection Funds. But

funds which are equity oriented with 65%-80% exposure in equity market but with some debt portfolio as well are called

Balanced Funds. They basically try to mix the benefits of both the worlds so as to provide a one-for-all solution to its

customers. It is quite a good choice for someone who wants to invest in equity market but is not too keen in taking risk on the

entireportfolio.BalancedFundsusuallyhave a good large capstockportfoliowith a mixture of good quality debt securities.

Why Balanced Funds?Good for first timers

Balanced funds are especially good for first time investors so that they avoid the market volatility by not opting for a 100%

equity fund andyetget thereturnof theequitymarkets with a hedging opportunity with thedebt portfolio. Some experts sayit

is very good fornew-to-equitieskind of investors.

Investing Cushion

When themarkets are in doldrums, balanced funds have alwayscreated a cushion as against equity funds when themarket

corrects. This can also be considered as a hedging technique as 35% of the portfolio is almost at all times in debt securities

which is unaffected by the equity market volatility. Therefore, by having lesser equity exposure, the risk is definitely under

control but the returns also do not match with that of the equity returns. For example when the market crashed in 2008, an

average well diversified equity fund fell about 53% whereas a balanced fund fell by about 42% only. So, it could save the

fund by about 11% on an average but when the markets recovered, the equity funds would recover much faster whereas

balanced fundswould have more consistent lower returns.

Equity Taxation with Lesser Risk

With debt long term capital gain taxation be

the money navigator may 2016

Documents