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IEA Report

7th Dec 2016


"SUBSCRIBE"

Lauras Labs Ltd

7th Dec 2016

Company strategic and early investments in R&D and manufacturing infrastructure has enabled to become one of the leading suppliers of APIs in
the ARV therapeutic area to reap long term benefits on account of a robust business model, healthy balance sheet, strong business prospects in
terms of multiple levers in place for growth and ability of the management to leverage its capabilities in a bid to cultivate its business.
At the higher end of the price band of Rs 428, the IPO is valued at 12.6x EV/EBITDA and 34.1x P/E on FY16 basis. We believe the company is being
offered at upper band of its valuations. We maintain "SUBCRIBE" on this IPO. .......................................... ( Page : 2 -3)

ONGC

"BUY"

7th Dec 2016

ONGC is likely to achieve its annual target of 5.87MT crude production in FY17. The company has already crossed its daily production target of
16200 tonnes per day as compared to 15300 tonnes in Aug 2015. Recent upsurge in the crude oil prices will make onshore production viable. The
management has also guided that no subsidy has been decided by the government in FY17, thus benefits of higher crude would flow into the
company. Considering above arguments we recommend BUY on this stock with a target price of Rs. 365. ............................................... ( Page :
4 -6)

EICHERMOT

"NEUTRAL"

6th Dec 2016

Going forward, we expect capacity addition in line with demand(RE), seventh pay commission payout, expectation of pre-buying on new emission
norms and improving infrastructure activities in the country may be next growth drivers for the company. But in the near term we see some stress
in demand due to demonetisation and see some tapering of growth due to higher base in previous year. Presently, we are 'Neutral' on this stock
considering lateset demonetisation and confusion regarding the demand scenario, with a target price of Rs. 26000. Earlier, we recommended 'BUY'
on this stock at Rs.19753, and 'Booked Profit' at Rs.24777, an upside of 25%. ......... ( Page : 7-9)

SADBHAV

"BUY"

5th Dec 2016

Though the execution in Q2FY17 was slow due to heavy monsoon, we expect full fledged execution in H2FY17 will help SADBHAV to register robust
revenue growth. Reduced working capital from Irrigation project and repayment of loan from SIPL will strengthen companys balance sheet
position. SADBHAV is better placed to grab opportunities from upcoming government spending to boost infrastructure. We are keeping our
positive stance on stock. We maintain Buy rating for a target price of 315/- .......... ( Page :10 -13)

BANKBARODA

"BUY"

2nd Dec 2016

Focus of the management on profitability has resulted in steady quarter this time. BoB has shown a sign of improvement in its profitability. In the
clean up exercise, BoB has recognised huge stress assets in its balance sheet. Going forward we expect the stress assets to decline significantly thus
resulting in credit cost to decline. However BoB needs to come out of the consolidation of advances and should grow its loan portfolio to further
support the operating profitability. Strong capitalization of 12.9% CRAR (Tier 1 at 10.6%) will help the bank to grow further without any near term
dilution. We recommend BUY with the target price of Rs 188. ....... ( Page : 14-18)

ASIANPAINT

"NEUTRAL"

1st Dec 2016

Management remained silent on volume growth improvement (which indicates lower double digit volume growth going ahead) but did hint at
margin pressures. We do not see significant improvement in volume growth, margin risks (due to high input cost) and peak valuations (trades at
FY18 P/E of 45x) make the risk-reward unfavorable. We see downside risks to our estimates due to an unfavorable H2FY17 base with top line and
gross margins peaking out.It also expects paint companies to register flat growth in sales during Q3FY17 compared Q3FY16, following the
government's move to scrap old Rs 500 and 1,000 notes. While the month of October saw significant jump in sales during festive season,
November has seen a significant fall on account of the demonetization announcement.
While the paint industry is 80-85 per cent cash-driven with the paint retailers accepting only cash payments for the sales, is now shifting over to
digitized payments to keep the business going. We maintain Neutral rating with a target price of Rs.1015. ......................................................... (
Page : 19-20)

KEC

"HOLD"

30th Nov 2016

Efficient working capital management boosted earnings and strengthened balance sheet position and we expect it to continue going forward.
Considering the ramp up in execution of substation (T&D) project, healthy SAE order book & margin level and huge potential in railway business
will help KEC to perform better in H2FY17. But considering the current macroeconomic condition we recommend HOLD on the stock with
unchanged target price of Rs. 164/-. ................................................ ( Page : 21-22)
Narnolia Securities Ltd

IEA Edition No.-

899

Lauras Labs Ltd

"SUBSCRIBE"
7th Dec 2016

IPO Note
Issue Detail

Company Overview

Type
Issue Size

100% Book Building


Rs. 1350 Crore

Offer Price

*Rs (426 - 428)/Equity Share

Min App Size

35 Shares

Issue Open

6-Dec-16

Issue Close
Shares Offer
Face Value

Lead Mgrs

8-Dec-16
3.115
Rs 10
Citigroup Global Markets India
Pvt Ltd, Jefferies India Pvt Ltd ,
Kotak Mahindra Capital
Company Ltd.

Listing
Registrar

NSE,BSE

Laurus Labs Ltd was incorporated in 2005 which is Hyderabad based pharmaceutical company.
Laurus Labs is in the business of manufacturing generic active pharmaceutical ingredients (APIs) for
therapeutic areas of antiretrovirals (ARVs) and Hepatitis C. Company also manufacture APIs in
oncology and other therapeutic areas.
Company operate in four buisness : Generics - APIs , Generics - FDFs , Synthesis and Ingredients.
Generics -API business comprises the development , manufacture and sale of APIs and advanced
intermediates . Generics FDF business comprises the development and manufacturing oral solid
formulation. Synthesis business includes contact development and manufacturing services for
global pharmaceutical companies . Ingredients business comprises the manufacture & sale of
speciality ingredients for use in the nutraceutical and cosmeceutical sectors. Company has lunched
59 products . company's key customers Asper pharmacare Ltd , Auropharma , Cipla , Mylan , Natco ,
Strides shasun Ltd . Company owned 32 patents and had 150 pending patent application in several
countries . Company has three manufaturing facilities in visakhapatnam , andhra Pradesh. Company
sells its products in 32 countries in sub saharan africa , south east asis and Latin America.

Karvy Computershare Pvt Ltd

Market Cap
(Post Issue)

4527.8

No of shares ( Post & Pre Issue)


No of Shares (Pre Issue)
Offer for Sale

987,46,904
241,07,440

Fresh Issue made


No of Shares (Post Issue)

7042253
105789157

Bid allocation pattern

Company Strategies
> Company is a leading developer and manufacturer of generics APIs in select , high- growth
therapeutics areas of ARV and Hepatitis C.
> Company has strong R&D capabilities & process chemistry skills . Company is focused on
undertaking dedicated R&D in existing products where company believe there is significant growth
potential.
> Copany has maintained long standing relationship with multi national pharmaceutical companies .
Company cumulative revenue from such customers has grown year over year for the last three
financial years.
> Company experienced Promoters and Qualified Operational Personnel

Risk

QIB

50%

Non-Institutional

15%

Retail

35%

> Any manufacturing or quality control problems may subject us to regulatory action, damage our
reputation and have an adverse effect on business, results of operations, financial condition and
cash flows.
> Company derive a significant portion of revenue from a few customers, most of whom Company
do not have long term contractual arrangements with, and the loss of one or more such customers,
the deterioration of their financial condition or prospects, or a reduction in their demand for our
products could adversely affect business, results of operations, financial condition and cash flows

Objects of the Issue:


Particulars
Pre-payment of term loans
General corporate purposes.

Recommendation
Company strategic and early investments in R&D and manufacturing infrastructure has enabled to become one of the leading suppliers of
APIs in the ARV therapeutic area to reap long term benefits on account of a robust business model, healthy balance sheet, strong business
prospects in terms of multiple levers in place for growth and ability of the management to leverage its capabilities in a bid to cultivate its
business.
At the higher end of the price band of Rs 428, the IPO is valued at 12.6x EV/EBITDA and 34.1x P/E on FY16 basis. We believe the company is
being offered at upper band of its valuations. We maintain "SUBSCRIBE" on this IPO.

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

Lauras Labs Ltd


Financials
Yearly Profit & Loss Account (Consolidated Figure)

Figure in Rs (Crore)

30th Sept
2016
Total Income
EBITDA
PAT
EBITDA Margin
PAT Margin
No of Shares
Post Issue Diluted EPS
Price
P/E( At upper price band)
P/E( At lower price band)
EV/EBITDA( At upper price band), X
EV/EBITDA( At lower price band), X
ROE %

31 March
2016

31 March
2015

31 March
2014

942
209
75
22%
8%
10.57
14.21

1,791
380
133
21%
7%
10.57
12.55

1,361
234
68
17%
5%
10.57
6.47

1,169
218
97
19%
8%
10.57
9.20

Rs 426 - 428
34.1
33.9
12.85
12.80
16%

15.6%

9.5%

27.1%
Figure in Rs (Crore)

Balance Sheet
30th Sept
2016

31 March
2016

31 March
2015

31 March
2014

EQUITY AND LIABILITIES


Share capital
Reserves and surplus

Shareholders' funds
Long-term borrowings

Short-term borrowings

Total Borrowing
Deferred tax liability (net)
Long-term provisions
Other Long Term Liabilities

Non - current liabilities

830

99

82
769

82
640

78
281

929

852

722

358

283
576

461
481

304
432

188
312

859

942

735

500

60
8
38

45

10
5
45

12

7
44

4
0

106

96

60

16

308
354
25

249
145
20

231
133
7

227
164
7

687
2581

413
2303

371
1888

399
1273

Long-term loans and advances


Non current investment
Other non-current assets

1276
152
6
13.74

1155
129
7
9.06

911
94
7
13.97

615
69
0
14.53

Non-current assets

1447

1300

1026

698

521
533
14
39
26

487
445
28
30
13

475
285
59
31
12

328
195
23
25
4

1134
2581

1003
2303

862
1888

575
1273

Trade payables
Other current liabilities
Short-term provisions

Current liabilities
TOTAL Liabilities
Fixed assets

Inventory
Trade receivables
Cash and bank balances
Short-term loans and advances
Other Current Assets

Current assets
Total

Buy
OIL AND NATURAL GAS CORPORATION LTD.
Company Update
CMP

298

Target Price
Previous Target Price
Upside
Change from Previous

365
22%
-

Market Data
BSE Code
NSE Symbol
52wk Range H/L
Mkt Capital (Rs Cr)
Av. Volume(,000)
Nifty

500312
ONGC
299/187
254953
427
8163

Stock Performance
1M
Absolute
Rel.to Nifty

10.5
14.8

3M

12M

25.4
23.3

43.0
34.6

Promoters
Public
Others
Total

Q2FY17_Result Update

Profit after tax for 2QFY17 stands at Rs. 4976 Cr as compared to Rs.
4681 Cr in the same quarter of FY16.
Crude oil production in 2QFY17 is 6.392MMMT (de-growth of 2% on
YoY).

15 oil and gas discoveries notified till 2QFY17


EBITDA margin of the company has improved by 630bps to 49.5% in
2QFY17
LPG volume has increased from 0.29 MMT to 0.36 MMT in 2QFY17

1QFY17 4QFY16

68.93
31.07

68.93
31.07

68.93
31.07

100

100

100

Company Vs NIFTY
140

ONGC has posted revenue of Rs.18395 Cr in 2QFY17 as compared to


Rs.20512 Cr in 2QFY16 (de-growth of 10% on YoY). This de-growth was
led by unfavorable international crude oil prices till Nov.2016 but now we
expect turn around in the crude oil prices due to the decision taken by the
OPEC on 2nd Dec 2016 to cut down crude production by 1.2 million barrels
per day (bpd) to 32.5 million barrels per day for the first time in eight years
. According to management, every 1USD increase in the crude price will
help the company to generate additional revenue of Rs.1000 Cr and PAT
of Rs 425 Cr on the yearly basis. At the same time the company is on the
track to achieve its planned production volumes of 25.73 metric tonnes for
FY17.

Gas production in 2QFY17 is 5.807BCM as compared to 5.702 BCM in


2QFY116(increase of 1.84% on YoY)

Share Holding Pattern-%


2QFY17

07-Dec-16

ONGC

NIFTY

130
120

Outlook and Valuation

ONGC is likely to achieve its annual target of 5.87MT crude production in


FY17. The company has already crossed its daily production target of
16200 tonnes per day as compared to 15300 tonnes in Aug 2015. Recent
upsurge in the crude oil prices will make onshore production viable. The
management has also guided that no subsidy has been decided by the
government in FY17, thus benefits of higher crude would flow into the
company. Considering above arguments we recommend BUY on this
stock with a target price of Rs. 365.

110
100

Financials

2012

2013

2014

2015

90

Sales
EBITDA
Net Profit
EPS
P/E

147285
48491
28144
33
8.2

162403
43499
24220
28
11.0

174477
49725
26507
31
10.3

160890
42301
18334
21
14.3

Nov-16

Oct-16

Sep-16

Jul-16

Aug-16

Jun-16

Apr-16

May-16

Mar-16

Jan-16

Feb-16

Dec-15

Nov-15

80

Aditya Gupta

Rs,Cr
2016
131517
41261
14123
17
13.2

(Source: Company/Eastwind)

aditya.gupta@narnolia.com
Narnolia Securities Ltd,
Please refer to the Disclaimers at the end of this Report.

Management Speak/ Key take aways From Management Interview


ONGc has notified 7 more discoveries since last press release on 7th September,2O16.
ONGC to begin oil production from Ratna R-Series field in 2019.Production form the fields is targeted to start in 2019
with an output of 10,000 barrels per day

ONGC will invest USD 20 billion in next 5-7 years primarily in deepwater fields to augment gas production
Management is confident of volumes improving on back of project implementation
Subsidy

Subsidy Burden
16202
13796 13764

12622

13200

Government has decided


no subsidy for FY17, and
benefits will flow to the
company

13641
9458

1096

Operational Highlights

Volume Trend
Crude Oil (MMT)
7.0

6.5
6.2

6.0

6.5
6.2

6.5
6.3

6.5
6.2

6.4
6.0

6.4
5.7

6.6
6.0

Gas (BCM)
6.5
5.8

6.5
5.8

6.6
5.8

6.5
5.8

6.3
5.8

6.3
5.5

6.4
5.5

5.0
4.0
3.0
2.0
1.0
-

About the Company

Business Segment Overview

ONGC is Indias largest national oil & gas company, primarily


engaged in the exploration, development and production of crude
oil and natural gas in both India and abroad. ONGC, through its
wholly owned subsidiary ONGC Videsh Ltd, has presence across
14 countries in E&P activities. The company is also present in
downstream refining and marketing operations in India through
its subsidiary MRPL, which operates a refinery with an installed
capacity of 15 MMTPA.ONGC dominates Indias oil & gas
production with more than twothird share of the countrys
production of oil and oil equivalent gas. It contributes ~78% and
~73% to total oil and gas production, respectively, in India.
ONGC has 969 mmtoe of proved reserves and 1451 mmtoe of
2P reserves at FY13 end. Its total domestic production for FY13
aggregated 51.5 mmtoe.

Narnolia Securities Ltd,


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

Financials Snap Shot

FY13
Revenue (Net of Excise Duty)1,62,403
Other Income
5,491
Total Revenue
1,67,893
COGS
(1,120)
GPM
-1%
Other Expenses
1,06,755
EBITDA
43,499
EBITDA Margin (%)
27%
Depreciation
11,763
EBIT
31,735
Interest
484
PBT
36,742
Tax
12,752
Tax Rate (%)
35%
Reported PAT
24,220
Dividend Paid
9,509
No. of Shares
856

INCOME STATEMENT
FY14
FY15
1,74,477
1,61,212
6,894
5,925
1,81,371
1,67,137
(719)
1,723
0%
1%
1,16,169
1,04,795
49,725
42,342
28%
26%
16,581
18,033
33,144
24,309
624
2,864
39,413
27,370
12,760
9,697
32%
35%
26,507
18,334
9,509
9,259
856
856

RATIOS
FY16
1,31,498
7,023
1,38,521
725
1%
82,414
42,051
32%
18,009
24,042
2,157
22,718
8,417
37%
14,124
5,756
856

EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Price / Book Value
Dividend Yield (%)
Profitability Ratios
RoE
RoCE
Turnover Ratios
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Creditors (No. of Days)
Net Debt/Equity (x)

Souce: Eastwind/Company

Share Capital
Reserves and surplus
Shareholders' funds
Long term Debt
Total Borrowings
Non Current liabilities
Long term provisions
Short term Provisions
Current liabilities
Total liabilities
Net Fixed Assets
Non Current Investments
Other non Current assets
Current assets
Total Assets

FY13
4,278
1,48,250
1,52,528
8,843
11,527
14,849
161370
1,64,703
39,745
15,396
19,619
18,615
26,350
27,400
2,53,461

BALANCE SHEET
FY14
FY15
4,278
4,278
1,67,873
1,76,177
1,72,151
1,80,454
31,681
47,575
13,907
5,345
18,552
19,357
203832
228030
2,09,603
2,23,186
53,827
32,660
16,028
18,816
24,480
16,097
30,678
30,466
31,357
35,039
19,941
20,191
3,24,911
3,38,292

FY16
4,278
1,80,467
1,84,744
46,272
7,321
21,547
231016
2,36,529
32,508
9,687
25,784
33,886
40,937
15,227
3,56,211

FY13
28
178
11
39%

FY14

FY15

FY16

31
201
11
36%

21
211
11
51%

17
216
7
41%

11
2
4%

10
2
3%

14
1
4%

13
1
3%

16%
20%

15%
16%

10%
11%

8%
10%

0.64
35
29
42
0

0.54
34
31
64
0

0.48
43
24
69
0

0.37
27
28
94
0

Souce: Eastwind/Company

CASH FLOW STATEMENT


FY13
FY14
FY15
FY16
OP/(Loss) before Tax
36,742
39,413
27,370
22,718
Depreciation
12,094
16,581
18,033
18,009
Direct Taxes Paid
12,416
10,567
9,029
7,626
Operating profit before working
58,306
capital changes
59,570
54,535
46,960
CF from Op. Activity
39,874
53,270
33,950
52,777
Proceeds from sale of Current investments
(83)
Capital expenditure on fixed(17,961)
assets including
(14,939)
capital advances
(16,906)and capital
(11,324)
work-in
CF from Inv. Activity
(41,220)
(63,633)
(30,320)
(37,977)
Repayment of Long Term Borrowings
10,432
33,199
17,078
5,522
Interest Paid
(687)
(709)
(1,199)
(1,466)
Divd Paid (incl Tax)
11,002
9,762
9,495
5,920
CF from Fin. Activity
(6,927)
15,225
(10,641)
(6,223)
Inc/(Dec) in Cash
(8,273)
4,862
(7,010)
8,578
Add: Opening Balance
27,874
19,601
12,727
5,720
Closing Balance
19,601
24,463
5,717
14,298

Souce: Eastwind/Company

Narnolia Securities Ltd,


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

Souce: Eastwind/Company

NEUTRAL
6-Dec-16

Eicher Motors Limited


Result Update
CMP

22742

Target Price
Previous Target Price
Upside
Change from Previous

26000
14%
-

Market Data
BSE Code
NSE Symbol

505200

EICHERMOT

52wk Range H/L


Mkt Capital (Rs Cr)
Av. Volume
Nifty

26602/14818
61,855
7067
8087

1Year

YTD

-7.6
-2.9

38.9
36.9

34.7
32.9

Absolute
Rel.to Nifty

Gross Margin increased by 460 bps YoY to 48.1% majorly due to better product
mix and lower commodity cost.

Share Holding Pattern-%


2QFY17 1QFY17

Promoter
Public
Others
Total

50.6
49.4
-100.0

4QFY16

50.7
49.3
-100.0

54.9
45.1
-100.0

Company Vs NIFTY
160

EICHERMOT

2QFY17 Result Update


Revenue grew by 35% YoY to Rs.1755 crore in 1QFY17. The motorcycle sales
grew by 31%YoY and the commercial vehicle segment grew by 15% YoY.

Stock Performance
1Month

Eicher Motors have reported Rs.1755 crore of revenue, a growth of 35% YoY in
2QFY17. The motorcycle volumes clocked 33% growth YoY in 2QFY17 on
account of higher RE Classic 350 sales. The realization also improved by 3%
YoY, because of price hike during the quarter. The waiting period for Classic350'
models remain 3 months and for other models it is 14-15 days. The company has
scaled up the capacity to 675000 units in FY17, looking at the growing demand
for premium motorcycles. On commencement of Vallam Vadagal facility the total
production capacity will reach to 900000 units in FY19.This facility will commence
production in 3 phases starting from 2QFY18. Market share in top-20 cities in the
premium segment stands at 20%. The commercial Vehicle segment reported
sales of 3176 units, a degrowth of 13% YoY. The demand from fleet owners may
remain sluggish due to the cash crunch in the economy. CV segment market
share has improved from 11% to 13% in the current fiscal. The management has
stated that the business outlook continues to be strong in the long run for both RE
and VECV.

NIFTY

150
140
130

EBITDA Margin expanded by 390 bps YoY to 30.9% driven by benefit of operating
leverage. PAT Margin expanded by 170 bps YoY to 23.5%.
Outlook and Valuation
Going forward, we expect capacity addition in line with demand(RE), seventh
pay commission payout, expectation of pre-buying on new emission norms and
improving infrastructure activities in the country may be next growth drivers for the
company. But in the near term we see some stress in demand due to
demonetisation and see some tapering of growth due to higher base in previous
year. Presently, we are 'Neutral' on this stock considering lateset demonetisation
and confusion regarding the demand scenario, with a target price of Rs. 26000.
Earlier, we recommended 'BUY' on this stock at Rs.19753, and 'Booked Profit' at
Rs.24777, an upside of 25%.

120

Rs. In crore

110
100

Financials

2QFY17

1QFY17

2QFY16

QoQ

YoY

90

Sales
EBITDA
Net Profit
EBIDTA%
PAT %

1755
542
413
31%
24%

1556
470
376
30%
24%

1300
351
285
27%
22%

13%
15%
10%

35%
55%
45%

Oct-16

Nov-16

Sep-16

Jul-16

Aug-16

Jun-16

Apr-16

May-16

Feb-16

Mar-16

Jan-16

Dec-15

Nov-15

80

Naveen Kumar Dubey


naveen.dubey@narnolia.com

(Source: Company/Eastwind)

Narnolia Securities Ltd,

EICHERMOT
Investment Argument
>> The user segment has changed drastically for RE and 90% of the customers have bought these bikes for daily use. The
penetration in the premium segment is very low, so we assume that there is a lot of potential exist for Royal Enfield going ahead.
>> Royal Enfield's R&D centre in the UK is developing a 600-650cc twin-cylinder motorcycle, designed to serve cruiser riders of
the US and Europe. The bike is likely to be launched next year.
>> RE has expanded its footprint in the exports by opening up stores in the various export markets like; Latin America, Paris,
London, indonesia, bangkok and Madrid.
>> On the commercial vehicle front, the transportation sector has been affected mostly by the cash crunch and monthly run-rate
would be 10-20% lower in second half than the first of the current fiscal. We anticipate that this could be deferral of sales only in
near term, because around 80-85 percent commercial vehicles are financed.

Management Highlight
>> Management said that the out look for RE is strong backed by healthy order book.
>> CV space looks challenging going ahead due to cash cruch in the economy.
>> Higher growth potential international markets are Latin America and South East Asia.
>> Production is 50000 units per month and average waiting period is 3 months for classic models.
>> Currently RE dealer count is 500 and it will reach more than 600 by FY17.
>> Capex is Rs.600 crore for RE and Rs.400 crore for VECV towards setting up technical centers and capacity enhancement.
>> Multix- Plant in Jaipur, produced 650 units till december 2015. Target customers for Multix are Independent businessmen.
>> No plans for setting up plants in overseas market in near future.
>> The company plans to increase its capacity in the Pithampur facility from 5500 to 7500 units per month going forward.

About The Company


Incorporated in 1982, Eicher Motors Limited is the flagship company of the Eicher Group in India and a leading player of the Indian
automobile industry. The company is mainly engaged in the business of high end motorcycles (350cc & above) under the brand 'Royal
Enfield' and Commercial Vehicles business segment under 'Volvo Eicher Commercial Vehicles'.

EML Business Details

Eicher Motors Ltd.


(EML)

Eicher Polaris (50%)

Royal Enfield
(100%)

VECV (54.4%)

Key Risks
>> Company have plans to increase its capacity to 9 Lakh units per annum by the end of 2018. Rise in demand may increase the
waiting period for the bikes in short term, which is 3-4 months.
>> In the US market the company can face stiff competition from Harley Davidson.
>> Bajaj Auto's Avenger can be potential threat for Royal Enfield in Indian market.
Narnolia Securities Ltd,
Please refer to the Disclaimers at the end of this Report.

EICHERMOT

Financials Snap Shot

CY13
146
760
35
24%

RATIOS
CY14
FY16
227
470
928
1275
59
117
26%
25%

FY17
581
1715
145
25%

34
7
0.7%

66
16
0.4%

41
15
0.6%

43
15
0.6%

19%
27%

24%
36%

37%
58%

34%
42%

1.3
27
41
64
0.04

1.4
23
41
63
0.00

1.9
19
37
58
0.00

0.9
19
37
58
0.00

INCOME STATEMENT

CY13
Revenue (Net of Excise Duty)
6810
Other Income
95
Total Revenue
6905
COGS
4639
GPM
32%
Other Expenses
925
EBITDA
713
EBITDA Margin (%)
10%
Depreciation
130
EBIT
583
Interest
8
PBT
671
Tax
145
Tax Rate (%)
22%
Reported PAT
394
Dividend Paid
95
No. of Shares
3

CY14
8738
107
8846
5766
34%
1198
1115
13%
220
895
10
993
291
29%
615
159
3

FY16
15689
112
15801
10121
35%
2063
2447
16%
452
1996
9
2099
647
31%
1278
318
3

FY17
6778
203
6981
3561
47%
746
2082
31%
147
1935
3
2135
657
31%
1575
392
3

EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Price / Book Value
Dividend Yield (%)
Profitability Ratios
RoE
RoCE
Turnover Ratios
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Creditors (No. of Days)
Net Debt/Equity (x)

Souce: Eastwind/Company

Souce: Eastwind/Company

BALANCE SHEET

Share Capital
Reserves
Net Worth
Long term Debt
Short term Debt
Deferred Tax
Total Capital Employed
Net Fixed Assets
Capital WIP
Debtors
Cash & Bank Balances
Trade payables
Total Provisions
Net Current Assets
Total Assets

CY13
27
2028
2055
84
84
180
2139
2120
125
513
683
1191
170
1008
5337

CY14
27
2489
2516
0
58
239
2516
2728
236
562
380
1513
265
614
6408

FY16
27
3437
3464
0
86
338
3464
3314
118
834
476
2509
99
353
8479

CASH FLOW

FY17
27
4620
4648
0
37
338
4648
3724
118
360
596
1084
52
813
7663

CY13
CY14
FY16
FY17
OP/(Loss) before Tax
671
993
2099
2135
Depreciation
130
220
452
147
Direct Taxes Paid
(150)
(281)
(634)
(657)
Operating profit before working
718capital changes
1126
2460
2285
CF from Op. Activity
716
1047
2282
656
0
(150)
(869)
0
Capital expenditure on fixed assets
(712) including
(972)capital (1070)
advances and
(558)
capital work-in-p
CF from Inv. Activity
(790)
(1087)
(1481)
(593)
Repayment of Long Term Borrowings
(1)
0
0
0
Interest Paid
(8)
(10)
(9)
(3)
Divd Paid (incl Tax)
(88)
(115)
(486)
(335)
CF from Fin. Activity
(47)
(162)
(563)
(444)
Inc/(Dec) in Cash
(121)
(202)
238
(380)
Add: Opening Balance
804
683
353
591
Closing Balance
683
481
591
211

Souce: Eastwind/Company

Narnolia Securities Ltd,


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

Souce: Eastwind/Company

BUY
2-Dec-16

SADBHAV ENG.
Result Update
CMP

277
315
14%
-

Target Price
Previous Target Price
Upside
Change from Previous
Market Data
BSE Code

532710

NSE Symbol

SADBHAV
369/198
4,753
4923
8087

52wk Range H/L


Mkt Capital (Rs Cr)
Av. Volume
Nifty
Stock Performance
Absolute
Rel.to Nifty

1Month

3 Month

1Year

3.1
8.1

-4.3
3.9

-21.9
-23.5

Share Holding Pattern-%


4QFY16

Promoters
Public

3QFY16 4QFY15

47%
53%

47%
53%

47%
53%

Sadbhav reported subdued numbers for the Q2FY17 due to heavy monsoon
and project related issues. The company suffered Rs. 70 Cr of revenue loss
on Irrigation project in MP on account of heavy monsoon,Rs.30 Cr of
revenue loss on two road project in Karnataka due to Kaveri Water dispute
and around Rs. 35 Cr of revenue loss in BCCL (Mining) project because of
service tax related issues. Top line de grew by the 17.5% YoY to Rs. 616 Cr
as compared to Rs. 746 Cr in 2QFY16. EBITDA for the quarter stood at Rs.
65 Cr as against Rs. 81 Cr in 2QFY16, 19% down YoY with similar margin.
PAT de grew by 33% YoY to Rs. 19 Cr vs Rs.28 Cr in same period last year.
Higher 80 IA benefit led to NIL effective tax rate for the quarter and it will be
continue for the next 3 quarters based on higher revenue contribution from
road EPC and irrigation projects. Current order book stands at Rs. 9363 Cr
(including Orders won after September) which provides strong revenue
visibility going forward.

Highway & Road drives the revenue growth:Currently 5 EPC projects are under execution and another 4 HAM project
will come under execution by January. 4 out of 5 projects have achieved
financial closure and expecting to get appointment date by January, 2017.
The company has already started working on these projects before getting
appointment date and expects to book Rs.300 Cr (approx.) revenue in
Q4FY17.Irrigation projects in MP lost one and half month due to heavy
monsoon but now all the projects are on track and management is confident
to complete it quickly. Blocked working capital will be released and it will be
used to fund working capital requirements on ongoing EPC projects.
Management is in talk with BCCL to settle down services tax issues in
mining and expects Rs. 350 Cr of annual revenue from mining. EPC (Road
& Irrigation) dominated revenue in H2FY17 will boost the bottom line by way
of 80 IA tax benefit.
Outlook and Valuation

Company Vs NIFTY
120

SADBHAV

NIFTY

110
100
90
80

Though the execution in Q2FY17 was slow due to heavy monsoon, we


expect full fledged execution in H2FY17 will help SADBHAV to register
robust revenue growth. Reduced working capital from Irrigation project and
repayment of loan from SIPL will strengthen companys balance sheet
position. SADBHAV is better placed to grab opportunities from upcoming
government spending to boost infrastructure. We are keeping our positive
stance on stock. We maintain Buy rating for a target price of 315/-

70

In Rs. Cr

60
50
40

Sandip Jabuani

Financials

FY13

FY14

FY15

FY16

FY17E

Sales
EBITDA
Net Profit
EBIDTA%
P/E

2160
394
7
18.2%
313.2

2733
436
44
15.9%
53.1

3447
580
-175
16.8%
-15.2

3878
803
-47
20.7%
-56.9

4487
929
67
20.7%
75.1

(Source: Company/Eastwind)

sandip.jabuani@narnolia.com
Narnolia Securities Ltd,

10

Demonetization impact on execution: NOT A MATERIAL ONE


Demonetization will not have any material impact on Sadbhavs standalone working is concerned. In concall, management has
clarified that from the raw material procurement to wages of labour and other related expense are channelized directly through
banking system. Though this currency clean up drive will surely have impact on different economic activities with different degree
in near term moving forward, management has indicated that Sadbhavs BOT business will not be spared from this, as traffic
growth may hamper.

Concall Update : Current Order stands at 9363 Cr (3128 Cr received after September)
Maintain Order intake of Rs. 5000-7000 Cr in FY17
Revenue loss of Rs.100 Cr due to heavy monsoon and 30 Cr on BCCL services tax issue
Growth will led by highway & construction segment for the next 2-3 years
Debtors will come down (1000 cr approx. on standalone books)as the money release from EPC project
Loan outstanding to SIPL is Rs. 280 cr and mgmt expecting to come down below 100 Cr
Rs. 320 Cr of mobilization advance on HAM project yet to receive
Achieved financial closure of 4 HAM projects and expect to get appointment date in December and commencement of work in
January.
Maintain revenue guidance of Rs. 3600-3700 Cr for FY17
Services tax issue at BCCL project will settle down by December.
No impact of demonetization on execution of the project
Tax rate will be NIL for next 3 quarter because of higher revenue from road EPC project. (all EPC project is eligible for 80 IA
benefit)
Segmental Order Book
BOT

EPC

Irrigation

Minning

10,000
9,000
2,153

8,000
7,000

2,269

2,724

2,728

2,392

2,273

6,000
5,000
4,000
3,000

1,872
1,345

1,919

2,226

1,136

2,061
1,975

1,733
2,015

1,097

1,982

2,193

1,811

1,749

3,021

1,442

2,851

2,567

2QFY15

3QFY15

Order book
9,500

4QFY15

1,836

3,995

1,187

3,837

3,477

3,054

1,404

990

573

233

174

156

1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

1QFY15

1,276

4,430

2,000
1,000

1,902

1,644

Book to Bill

3.79

4.00
3.50

9,000
8,941

2.76

3.00
2.35

8,500
8,000

2.50
2.00

8,200

Maintain order Intake guidence of


Rs. 5000-7000 Cr

1.50

7,500
7,487
7,000

1.00
0.50

6,500

FY14

FY15

FY16

Narnolia Securities Ltd,


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

11

Segmental Revenue
BOT

EPC

Irrigation

Minning

Power Generation

1,200
1,000

1
1

800
2
600

1
68

400
200

31
132

100
132

100

461

428

204

168

160

470

374

407

424

402

1QFY15

2
90

449

300

280

201

189

138
72

35
147

199

166

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

111

33

1QFY17

2QFY17

Toll Collection

Toll Collection
250
200
150

155

139

139

147

1QFY15

2QFY15

3QFY15

165

162

1QFY16

2QFY16

214

200

208

4QFY16

1QFY17

Managment Expecting
toll revenue will grow
25-30% CAGR

173

100
50
4QFY15

3QFY16

EBITDA

2QFY17

EBITDA M

120

11%
11%

11%

11%

11%

11%

100
10%

11%

80
10%

10%

10%

60

10%
10%

9%

40

9%

20
72

60

78

96

89

81

74

81

87

65

1QFY15

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

9%

Narnolia Securities Ltd,


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

12

Financials Snap Shot

FY14
2.9
82.4
0.7
24%

RATIOS
FY15
FY16
-10.2
-2.7
89.6
104.8
0.8
0.8
-8%
-30%

FY17E
3.9
107.9
0.8
21%

53.1
1.9
0.45%

-15.2
1.7
0.53%

-56.9
1.5
0.53%

75.1
2.7
0.28%

4%
5%

-11%
4%

-3%
5%

4%
6%

0.3
76.9
29.0
51.8
3.88

0.3
72.4
30.2
50.1
4.07

0.2
77.4
18.9
37.5
4.49

0.3
77.0
18.9
38.0
4.25

INCOME STATEMENT

FY14
Revenue (Net of Excise Duty)2733
Other Income
30
Total Revenue
2762
COGS
2064
GPM
1
Other Expenses
153
EBITDA
436
EBITDA Margin (%)
16%
Depreciation
127
EBIT
309
Interest
449
PBT
-110
Tax
-14
Tax Rate (%)
13%
Reported PAT
44
Dividend Paid
11
No. of Shares
15

FY15
3447
44
3491
2576
1
164
580
17%
219
361
615
-210
34
-16%
-175
14
17

FY16
3878
45
3922
2730
1
192
803
21%
287
516
726
-165
17
-10%
-47
14
17

FY17E
4487
45
4532
0
0
0
929
21%
304
625
581
89
21
24%
67
0
0

EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Price / Book Value
Dividend Yield (%)
Profitability Ratios
RoE
RoCE
Turnover Ratios
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Creditors (No. of Days)
Net Debt/Equity (x)

Souce: Eastwind/Company

Share Capital
Reserves
Net Worth
Long term Debt
Short term Debt
Deferred Tax
Total Capital Employed
Net Fixed Assets
Capital WIP
Debtors
Cash & Bank Balances
Trade payables
Total Provisions
Net Current Assets
Total Assets

FY14
15
1235
1250
4848
468
36
6098
6007
1
576
128
388
174
548
7871

FY15
17
1520
1537
6256
411
24
7793
9598
1
684
205
473
271
760
11933

FY16
17
1781
1798
8069
601
23
9867
13527
0
822
126
399
357
477
15809

FY17E
17
1848
1865
7869
601
23
9734
11805
1
951
0
461
332
435
14132

Souce: Eastwind/Company

FY14
FY15
FY16E
FY17E
OP/(Loss) before Tax
26
-233
-165
89
Depreciation
130
223
287
304
Direct Taxes Paid
56
68
17
21
Operating profit before working
469capital changes
596
890
974
CF from Op. Activity
786
385
2130
657
0
0
20
0
Capital expenditure on fixed assets
225 including
158 capital 7300
advances and
1417
capital work-in-p
CF from Inv. Activity
(1441)
(1357)
9330
1417
Repayment of Long Term Borrowings
0
0
0
0
Interest Paid
455
615
726
581
Divd Paid (incl Tax)
11
13
14
0
CF from Fin. Activity
706
1037
1580
(781)
Inc/(Dec) in Cash
52
64
13041
1294
Add: Opening Balance
58
110
205
126
Closing Balance
110
174
13245
1420

Souce: Eastwind/Company
Souce: Eastwind/Company

Narnolia Securities Ltd,


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

13

BUY
2-Dec-16

BANK OF BARODA
Steady Quarter, Focus on Profitability

Result Update
CMP

162

Target Price
Previous Target Price
Upside
Change from Previous

188
16%

Market Data
BSE Code
NSE Symbol

532134
BANKBARODA
179/104.
37235

52wk Range H/L


Mkt Capital (Rs Cr)
Av. Volume (,000)
Nifty

1461
8192

Stock Performance
1Month

Absolute
Rel.to Nifty

9.6
13.0

3 Month

(3.4)
(7.8)

1Year

4.8
1.3

Share Holding Pattern-%


2QFY17

Promoters
Public
Others
Total

1QFY17 4QFY16

59.2
40.8

59.2
40.8

59.2
40.8

100.0

100.0

100.0

Company Vs NIFTY
120

BANKBARODA

NIFTY

115
110
105
100
95
90
85

Operating Profit grew by 15% YoY on the back of Net Interest Income
turning positive and registering the growth of 6% YoY. Operating expenses
grew by 12% YoY which led the C/I ratio to stable at 46% YoY. Other
income grew by 36% YoY backed by treasury income. Core fee income
picked up by 13% YoY.
NIM improved by 21 bps YoY to 2.29% largely led by improvement in both
domestic as well as overseas NIM of 16 bps and 13 bps YoY respectively.
This improvement in NIM was backed by decline in cost of fund which was
supported by healthy CASA and shedding of high cost of deposits.
Overseas NIM improved on the back of focus on high yielding assets.
Management has targeted the domestic NIM of 3% and overseas NIM more
than 1%.
Stress Assets Decline
Slippages were restricted to Rs 2861 Cr against Rs 6096 Cr on 1Q FY17
giving a sign of improvement from this quarter. Healthy recovery & upgradation has also helped to decline the net NPA at Rs 42949 Cr against Rs
42992 Cr QoQ. Recovery & Up-gradation increased by 8% QoQ. The GNPA
and NNPA of the bank stand at 11.35% and 5.46% against 11.15% and
5.73% in previous quarter. PCR improved to 63% against 60% QoQ.
Standard restructured assets now stands at Rs 13860 Cr which declined by
25 QoQ. This quarter management invoked an SDR of Rs 2370 Cr and
there was no 5/25 refinance. These all give us comfort on stress assets
which seems to improve further going forward. However management has
maintained their stance on the earlier guidance of GNPA at RS 45000 Cr to
Rs 50000 Cr in FY17.
Advances Consolidate
As the focus of the management is on profitability, balance sheet continues
to be on consolidation phase. Thus, resulting decline in advances by 15%
YoY. Domestic advances declined by 11% and overseas advances declined
by 22% YoY. As a strategy on overseas portfolio, management has shifted
focused towards higher yielding assets i,e. local credit and syndicated
loans. Buyers credit which comprise low yield will decline further. Corporate
portfolio declined by 10% YoY. Home loan portfolio increased by 12% YoY.
However the loan growth must pick up for the further improvement in
operating profitability.

80

DEEPAK KUMAR
Deepak.kumar@narnolia.com
Narnolia Securities Ltd,

14

BANKBARODA
Concall Highlights:
>> Deacceleration of international portfolio was due to shed in low yield assets.
>> Out of Rs 45000 Cr high cost of deposits, 90% is already shed and rest will be done in 3Q FY17.
>> International cost of deposits has gone up due to LIBOR effect.
>> Efforts are to remix the portfolio towards higher yielded assets in overseas market. Focus on local credit and syndicated
loans which gives yield of 3.6% as compared to 1.2% on buyers credit. Buyers credit are consistently deacreasing.
>> In 2 days following the demonitization BoB has collected Rs 11500 Cr of which Rs 9500 Cr has gone into CASA.
>> Management holds the earlier guidance of slippages. Target the NNPA of less than 2% in FY19-20.
>> Due RBI guidelines on ratings of corporate exposure of above Rs 100 Cr, management expects deceleration in capital.
>> Targeting domestic NIM of 3% and overseas NIM of 1%- 1.2%.
>> CASA target of 35%.
>> Target to grow at a CAGR of 12%-15% from FY14 numbers over the 3 years period.

(Rs in Crore)

Quarterly Performance

Financials
Interest Inc.
Interest Exp.
NII
Other Income
Total Income
Ope Exp.
PPP
Provisions
PBT
Tax
Net Profit

2QFY15
10826
7425
3401
992
4393
1990
2403
888
1515
411
1104

3QFY15
10718
7432
3286
1090
4376
2037
2339
1262
1077
743
334

4QFY15
10762
7590
3172
1295
4467
1774
2694
1818
876
278
598

1QFY16
11276
7817
3460
967
4427
2225
2202
600
1602
550
1052

2QFY16
11156
7912
3244
1144
4389
2051
2337
1892
445
321
124

3QFY16
10614
7909
2705
1113
3818
2114
1704
6165
-4460
-1118
-3342

4QFY16
11014
7684
3330
1775
5105
2533
2572
6858
-4285
-1055
-3230

1QFY17
10434
7062
3371
1444
4815
2146
2669
2004
665
242
424

2QFY17
10485
7059
3426
1561
4988
2297
2690
1796
894
342
552

YoY %
-6%
-11%
6%
36%
14%
12%
15%
-5%
101%
7%
344%

QoQ%
0%
0%
2%
8%
4%
7%
1%
-10%
34%
42%
30%

Profitability Metrix
Ratios

Yield On Advances
Cost of Deposits
NIM% (Overall)
NIM% (Domestic)
NIM% (Overseas)
NII Growth %
C/I Ratio
Other Inc./Net Inc. %
Tax %
PAT to Total Income%

2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 YoY(bps) QoQ(bps)
8.4
8.1
7.7
7.9
7.6
7.0
6.9
7.2
7.3
(0.35)
0.03
5.2
5.2
5.2
5.1
5.1
5.0
5.0
4.7
4.8
(0.26)
0.11
2.4
2.2
2.2
2.3
2.1
1.7
2.2
2.2
2.3
0.21
0.06
3.0
2.9
2.8
2.9
2.7
2.1
2.7
2.8
2.9
0.16
0.05
1.2
0.9
1.0
0.9
0.9
0.9
0.9
1.0
1.0
0.13
17.5
7.5
1.5
3.9
(4.6)
(17.7)
5.0
(2.6)
5.6
10.20
8.16
45.3
46.6
39.7
50.3
46.7
55.4
49.6
44.6
46.1
(0.69)
1.50
22.6
24.9
29.0
21.8
26.1
29.1
34.8
30.0
31.3
5.24
1.31
27.1
69.0
31.7
34.3
72.0
25.1
24.6
36.3
38.3
(33.78)
1.93
25.1
7.6
13.4
23.8
2.8
(87.5)
(63.3)
8.8
11.1
8.23
2.27
15
Narnolia Securities Ltd,
Please refer to the Disclaimers at the end of this Report.

BANKBARODA
Outlook & Valuation:
Focus of the management on profitability has resulted in steady quarter this time. BoB has shown a sign of improvement in its
profitability. In the clean up exercise, BoB has recognised huge stress assets in its balance sheet. Going forward we expect the
stress assets to decline significantly thus resulting in credit cost to decline. However BoB needs to come out of the
consolidation of advances and should grow its loan portfolio to further support the operating profitability. Strong capitalization of
12.9% CRAR (Tier 1 at 10.6%) will help the bank to grow further without any near term dilution. We recommend BUY with the
target price of Rs 188.
Other income Break Up
>>Commission, Exchange,
Brokerage
>>Incidental Charges
>>Other Miscellaneous
Income
>>FX
Profits (Treasury)
Total Fee-Based Income
Trading Gains
Recovery from PWO
Total Other Income

(Rs in Crore)

2QFY15
333
104
93
252
782
179
31
992

Yield On Advances

3QFY15
373
79
106
253
811
244
36
1090

4QFY15
429
100
101
244
874
360
61
1295

Cost of Deposits

1QFY16
346
79
94
278
797
157
13
967

2QFY16
361
95
131
253
841
224
79
1144

3QFY16
339
91
128
241
799
289
24
1112

NIM

4QFY16
454
116
111
481
1162
509
104
1775

1QFY17
339
106
139
264
848
557
39
1444

NII Growth %

10.0

20.0

8.0

15.0

6.0

10.0

4.0

5.0

2.0

(5.0)

2QFY17
372
148
155
273
948
546
68
1562

YoY%
3%
55%
18%
8%
13%
144%
-14%
37%

QoQ%
10%
40%
12%
3%
12%
-2%
74%
8%

C/I Ratio
60.0
50.0
40.0
30.0
20.0

(10.0)
(15.0)
(20.0)

Narnolia Securities Ltd,

10.0
-

BANKBARODA
Assets Quality Performance
GNPA (Rs)
GNPA %
NNPA (Rs)
NNPA %
Slippages (Rs)
Recovery & Upgradation
Gross Restr. Assets (Rs)
PCR %

2QFY15
13058
3.32
6705

3QFY15
15492
3.85
8291

4QFY15
16261
3.72
8069

1QFY16
17274
4.13
8470

2QFY16
23710
5.56
12798

3QFY16
38934
9.68
21806

4QFY16
40521
9.99
19406

1QFY17
42992
11.15
20783

2QFY17
42949
11.35
19342

YoY%
81%
1.04
51%

QoQ%
0%
0.02
-7%

1.74
1853
513
23371
65

2.11
2852
380
23100
62

1.89
1789
354
31572
65

2.07
1908
827
31257
65

3.08
6962
414
30170
58

5.67
15785
325
30716
53

5.06
5932
3200
29004
60

5.73
6096
2482
29809
60

5.46
2861
2687
28464
63

0.77
-59%
550%
-6%
0.08

-0.05
-53%
8%
-5%
0.05

Specific PCR %

GNPA %

NNPA %
70
60
50
40
30
20
10
-

12.00
10.00
8.00
6.00
4.00
2.00
-

Advances
Net Advances (Rs in Cr)
Advances Growth YoY %
>> Growth QoQ %

2QFY15
385766
13.51
1.05

3QFY15
393630
11.69
2.04

4QFY15
428065
7.82
8.75

1QFY16
408388
6.97
-4.60

2QFY16
414900
7.55
1.59

3QFY16
384272
-2.38
-7.38

4QFY16
383770
-10.35
-0.13

1QFY17
362766
-11.17
-5.47

2QFY17
354150
-14.64
-2.38

Advances Break Up %
>>Domestic
>>International

2QFY15
67.08
32.92

3QFY15
66.28
33.72

4QFY15
68.18
31.82

1QFY16
67.54
32.46

2QFY16
66.92
33.08

3QFY16
67.45
32.55

4QFY16
68.60
31.40

1QFY17
69.09
30.91

2QFY17
69.60
30.40

Deposits
Deposits (Rs in Cr)
>> Growth YoY %
>> Growth QoQ %
CASA % (Domestic)
CASA Growth YoY %
>> Growth QoQ %
Credit Deposit Ratio

2QFY15
566926
16.91
2.77
31.89
15.91
6.78
68.05

3QFY15
564600
12.07
-0.41
32.42
12.93
0.75
69.72

4QFY15
617560
8.55
9.38
33.01
11.25
9.27
69.32

1QFY16
593087
7.51
-3.96
31.89
10.76
-5.78
68.86

2QFY16
612458
8.03
3.27
31.95
4.11
0.37
67.74

3QFY16
589687
4.44
-3.72
29.97
-5.11
-8.17
65.17

4QFY16
574038
-7.05
-2.65
33.57
-7.14
6.93
66.85

1QFY17
562174
-5.21
-2.07
33.83
-1.16
0.29
64.53

2QFY17
567531
-7.34
0.95
34.23
1.72
3.29
62.40

Narnolia Securities Ltd,


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

17

BANKBARODA
Financials Snap Shot
(Rs in Crore) RATIOS
FY15
FY16 Business Ratios

INCOME STATEMENT (Consolidated)

FY13

FY13

FY14

FY15

FY16

26,611

28,657

31,669

30,700

Credit-Deposit(%)

69.3

69.8

69.3

66.9

Income on Investments

7,888

9,294

10,604

11,334

CASA % (Domestic)

30.4

31.8

33.0

33.6

Intt. on bal.with RBI & other inter-bank Funds

1,538

1,671

1,718

1,470

Efficiency Ratios

Interest / discount on advances / bills

Others

FY14

404

841

924

2,295

Employ. Cost as a % of Total Inco. (%)

22.0

23.5

22.6

26.4

Total Interest Income

36,442

40,463

44,915

45,799

Other Exp./Total Inco. (%)

16.3

17.7

20.8

24.2

Total Interest expended

24,486

27,604

30,547

32,107

Cost Income Ratio (%)

38.3

41.2

43.4

50.6

Net Interest Income

11,956

12,858

14,368

13,692

Spread Analysis As Calculated


Yield on Advances (%)

8.4

7.7

7.5

7.3

Yield on Investments (%)

7.3

7.3

8.1

9.0

7.5

6.8

6.6

6.8

Other Income

4,511

5,555

5,449

5,992

Total Income

16,466

18,414

19,818

19,684

6,306

7,592

8,604

9,962

Yield on Earning Assets (%)


Cost of Deposits (%)

5.2

4.8

4.7

4.9

Cost of Fund (%)

5.3

4.9

4.7

5.0

Total Operating Expenses


Pre Provisioning Profit

10,160

10,821

11,213

9,721

Provisions (other than tax) and Contingencies

4,965

4,825

5,230

15,954

Profit Before Tax

5,195

5,996

5,983

(6,233) Interest Spread (%)

2.3

1.9

1.9

1.9

444

1,065

2,151

(1,180) NIM (%)

2.4

2.1

2.0

2.0

4,804

5,001

3,912

(5,068)

RoE %

16.1

14.4

9.7

-15.3

RoA %

0.9

0.8

0.5

-0.8

67.2

68.2

68.0

70.1

Provisions/PPP (%)

95.6

80.5

87.4

-256.0

Other Income/Net Income (%)

27.4

30.2

27.5

30.4

Tax Rate (%)

8.6

17.8

35.9

18.9

Tax
Net Profit attributable to the group

Souce: Eastwind/Company

BALANCE SHEET (Consolidated)

Profitability Ratio

(Rs in Crore) Interest Expended / Interest Earned (%)

FY13

FY14

FY15

FY16

423

431

444

462

Reserves & Surplus

32859

37416

41574

42041

Deposits

482639

579997

629981

586690

Asset Quality Ratio

Borrowings

26553

36976

35502

33845

GNPA (%)

2.40

2.94

3.72

9.99

Other Liabilities & Provisions

16805

21136

26290

27947

GNPA(Rs)

7,983

11,876

16,261

40,521

Total Capital & Liabilities

559388

676114

733977

691179

NNPA (%)

1.28

1.52

1.89

5.06

NNPA (Rs)

4,192

6,035

8,069

19,406

68.24

Capital

Cash & Balances with Reserve Bank of India

14151

19445

23557

22811

PCR (%)

Balances with Banks and Money at Call & Short Notice73551

114911

128074

114188

Gross Restr. Assets (Rs)

Investments

125617

122113

130246

128894

Advances

333625

403715

435415

391486

Fixed Assets

2550

2849

2978

6359

Capital Adequacy Ratio (%)

Other Assets

9894

13081

13706

27441

Tier I Capital (%)

Total Assets

559388

676114

733977

691179

Tier II Capital (%)

65.45

64.99

60.06

22,553

31,572

29,004

13.3

12.3

12.6

13.2

10.1

9.3

9.9

10.8

3.2

3.0

2.7

2.4

Capital Adequacy Ratio

Souce: Eastwind/Company

Narnolia Securities Ltd,


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

Souce: Eastwind/Company

18

Narnolia Securities Ltd


201 | 2nd Floor | Marble Arch Building | 236B-AJC Bose
Road | Kolkata-700 020 , Ph : 033-40501500
email: narnolia@narnolia.com,
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 change
without 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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