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IEA Report

2nd Feb 2017


EICHERMOT "BUY" 2nd Feb 2017

Going forward, capacity addition in line with demand(RE), seventh pay commission payout, expectation of pre-buying on new emission norms,
improving infrastructure activities in the country and expanding footprints in the international markets will lead to higher volumes and margins for
the company. We expect Eicher Motors to report 35% RoE in FY17E. Considering the strong order book in the Royal Enfield and better traction
from commercial vehicle business, we recommend 'BUY' and upgrade our target price to Rs.26600 from our previous target price of Rs.26000.
................................................... ( PAGE : 2-4)

VGUARD "Neutral" 2nd Feb 2017


Demonetization had some impact on some product segment and sales growth of some of the products had come down from earlier quarters. Sales
in Tamil Nadu Region were affected due to the socioeconomic situation prevalent in the State and because of cyclone affecting many parts of
Chennai and suburban areas. But as per the management the business outlook remains positive considering upcoming summer season. We have
positive view on this stock in long term but considering demonetization impact and high valuation we maintain "NEUTRAL" rating on this stock.
............................................. ( Page : 5-8)

KEC "BUY" 1th Feb 2017


Revenue growth during the 9 months was in turmoil due to lower commodity price and demonetization. But the operating margin continuous to
accretive during the period. We expect 5% and 15% revenue growth in FY17E and FY18E based on the strong traction in Transmission and railway
business with strong operating margin. We anticipate boost in the bottom line on account of strong AR collection which will result into lower
interest cost going ahead. At current price of Rs. 148 stock is trading at 2.2x P/B and 5.8X of EV/EBITDA. Considering the strong operating margin
and healthy order book we are bullish on the stock. Hence, we upgrade our target price to Rs. 185 from Rs.165 and recommend to BUY.
....................................... ( Page : 8-13)

IOC "HOLD" 1th Feb 2017


Indian Oil Corporation has equipped with BS VI standard HSD and BS VI standard motor spirit and by October 2017, a new unit will go on stream at
the refinery, where only BS VI standard HSD and high quality motor spirit will be produced on a mass scale. This will help the company to provide
fuel to the nation as per the fuel standards provided by the government. In the month of December 2016, the International crude oil prices have
soared up which is offset by increasing the realization of petroleum products. Despite short term uncertainties, we are optimistic in the long term.
Considering above arguments we recommend HOLD rating in this stock while maintaining the previous target price of Rs. 410 .
..................................................... ( Page : 14-16)

NUCLEUS Under Review 1th Feb 2017

Nucleus Software started its journey of developing world class IT products for customers in the banking and financial services space helping the
banks in meeting the diverse challenges posted by global business environment and also helping the industry to cope with the ever changing
regulatory landscape. Recently we met the management which helped us to understand the business of the company in more depth. Newer
solutions are gaining good traction. Going forward, Management is hopeful that increased revenue from products and improved cost management
will help the company to improve margins. We are keeping eye on the stock but currently, we do not have any rating for the stock.
............................................................... ( Page : 17- 24)

BLUESTARCO "Part Book 31th Jan 2017


Profit"
The electro-mechanical projects business continuous to be adversely impacted and it is likely to be further affected due to the expected slowdown
in the real state sector after demonetization. The overall prospects of the Unitary-cooling products business continuous to be robust with the
addition of new product lines such as water purifiers and Air purifiers coupled with premium brand equity and distribution strength.The company
remains confident of sustaining its performance in the last quarter. On the other hand company is planning to invest Rs 450 crore in the next three
years. The air-conditioner maker is getting consumers focus after entering the residential air conditioner and water purifier segment. We raised
our target from Rs 535 to Rs 590 and recommend book part profit near to Rs 530 and keep 50% for booking profit at Rs 590.
................................................ ( Page : 25 - 28)
Narnolia Securities Ltd IEA Edition No.- 945
BUY
Eicher Motors Limited 2-Feb-17

Result Update .
Strong growth momentum maintained
CMP 24007
Target Price 26600 Eicher Motors net sales surged by 43%YoY to Rs.1835 crore in 3QFY17.
Previous Target Price 26000 Domestic two wheeler volumes grew by 37%YoY and Exports grew by 163%
Upside 11% YoY owing to the huge demand from Bangkok and Jakarta. The demand for
Royal Enfield motorcycles remain robust despite the demonetisation issue in
Change from Previous -
the country during 3QFY17. The company continues to have healthy order
book with a waiting period of 3 months. The investment in international
Market Data markets has also started giving results in terms of high volumes. Realization
BSE Code 505200 improved by 3%YoY due to increase in sales of 500cc vehicles. On the
commercial vehicle front, VECV reported 7% de-growth due to
NSE Symbol EICHERMOT demonetization issue in the country. From 1st April 2017, the BS-III
52wk Range H/L 26602/16657 compliant vehicles will not be sold in the country, so the management
Mkt Capital (Rs Cr) 65,310 expects pre-buying to happen in 4QFY17 because 8-10 percent of price
Av. Volume increase after the implementation of BS-IV norms.
4621
Nifty 8716
3QFY17 Result Update

Stock Performance Net revenue stood at Rs.1835 crore in 3QFY17, a growth of 43%YoY.
1Month 3Month 1Year Volumes grew by 39%YoY and Realization grew by 3.5%YoY.
Absolute 6.7 0.2 39.6 Gross Margin increased by 110 bps YoY to 47.2% majorly due to better
Rel.to Nifty 0.3 -3.1 22.7 product mix.
EBITDA Margin expanded by 350 bps YoY to 31.4% driven by benefit of
Share Holding Pattern-% operating leverage. .
3QFY17 2QFY17 1QFY17 PAT Margin increased by 110 bps YoY to 22.8% in 3QFY17.
Promoter 50.6 50.6 50.7
Public 49.4 49.4 49.3 Outlook and Valuation
Others -- -- --
Total 100.0 100.0 100.0 Going forward, capacity addition in line with demand(RE), seventh pay
commission payout, expectation of pre-buying on new emission norms,
improving infrastructure activities in the country and expanding footprints in
Company Vs NIFTY
the international markets will lead to higher volumes and margins for the
160
EICHERMOT NIFTY company. We expect Eicher Motors to report 35% RoE in FY17E.
150 Considering the strong order book in the Royal Enfield and better traction
140 from commercial vehicle business, we recommend 'BUY' and upgrade our
130
target price to Rs.26600 from our previous target price of Rs.26000.

120

110 Rs. In crore


100 Financials 3QFY17 2QFY17 3QFY16 QoQ YoY
90 Sales 1835 1755 1284 5% 43%
80 EBITDA 577 542 358 6% 61%
Jul-16
Feb-16

Sep-16
Jan-16

Jan-17
Dec-16
Jun-16

Aug-16
May-16

Oct-16

Nov-16
Apr-16
Mar-16

Net Profit 418 413 279 1% 50%


EBIDTA% 31% 31% 28%
Naveen Kumar Dubey PAT % 23% 24% 22%
naveen.dubey@narnolia.com
Narnolia Securities Ltd 2
Please refer to the Disclaimers at the end of this Report
EICHERMOT
Investment Arguments
Capacity addition in-line with demand- Considering the 3 months waiting period the company increased the capacity from
600000 units to 720000 units per annum looking at the demand scenario. We expect that the Eicher will enjoy the benefit of
operating leverage with increasing volumes going ahead.
Expanding footprints in export markets- 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. The investments are becoming fruitful in terms
of higher volumes from exports.
Seventh Pay commission payout- The payout will increase the income level and living standard, so we expect that the
demand for premium segment vehicles will surge and Eicher Motors will be one of the bigger beneficiaries of seventh pay.
BS-IV norms to drive CV demand- From 1st April 2017, the BS-III compliant vehicles will not be sold in the country, so
management expects demand for BS-III vehicles to surge in 4QFY17 because 8-10 percent of price increase after the
implementation of BS-IV norms.

Management Highlights
Management said that the out look for RE is strong backed by healthy order book.
Higher growth potential markets for exports are Latin America, Jakarta and Bangkok.
Production is 60000 units per month and average waiting period is 3 months for classic models.
Orgadam plant to be commissioned by the end of 2017.
Currently RE has 640 retail outlets covering around 400 cities.
Capex is Rs.600 crore for RE and Rs.400 crore for VECV towards setting up technical centers and capacity enhancement.
Spare parts stands around 5-6 percent of total revenue.
No BS-III compliant vehicles can not be sold after 1st April 2017.

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)

Royal Enfield
Eicher Polaris (50%) VECV (54.4%)
(100%)

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 3

Please refer to the Disclaimers at the end of this Report


EICHERMOT

Financials Snap Shot


INCOME STATEMENT RATIOS
CY13 CY14 FY16 FY17 CY13 CY14 FY16 FY17
Net Revenue 6810 8738 15689 6942 EPS 146 227 470 597
Other Income 95 107 112 222 Book Value 760 928 1275 1727
Total Revenue 6905 8846 15801 7165 DPS 35 59 117 148
COGS 4639 5766 10121 3657 Payout (incl. Div. Tax.) 24% 26% 25% 25%
GPM 32% 34% 35% 47% Valuation(x)
Other Expenses 925 1198 2063 745 P/E 34 66 41 42
EBITDA 713 1115 2447 2141 Price / Book Value 7 16 15 14
EBITDA Margin (%) 10% 13% 16% 31% Dividend Yield (%) 0.7% 0.4% 0.6% 0.6%
Depreciation 130 220 452 146 Profitability Ratios
EBIT 583 895 1996 1995 RoE 19% 24% 37% 35%
Interest 8 10 9 3 RoCE 27% 36% 58% 43%
PBT 671 993 2099 2213 Turnover Ratios
Tax 145 291 647 701 Asset Turnover (x) 1.3 1.4 1.9 0.9
Tax Rate (%) 22% 29% 31% 32% Debtors (No. of Days) 27 23 19 19
Reported PAT 394 615 1278 1618 Inventory (No. of Days) 41 41 37 37
Dividend Paid 95 159 318 402 Creditors (No. of Days) 64 63 58 58
No. of Shares 3 3 3 3 Net Debt/Equity (x) 0.04 0.00 0.00 0.00

BALANCE SHEET CASH FLOW


CY13 CY14 FY16 FY17 CY13 CY14 FY16 FY17
Share Capital 27 27 27 27 OP/(Loss) before Tax 671 993 2099 2213
Reserves 2028 2489 3437 4653 Depreciation 130 220 452 146
Net Worth 2055 2516 3464 4680 Direct Taxes Paid (150) (281) (634) (701)
Long term Debt 84 0 0 0 Op before WC 718 1126 2460 2469
Short term Debt 84 58 86 38 CF from Op. Activity 716 1047 2282 814
Deferred Tax 180 239 338 338 0 (150) (869) 0
Total Capital Employed 2139 2516 3464 4680 Capex (712) (972) (1070) (557)
Net Fixed Assets 2120 2728 3314 3724 CF from Inv. Activity (790) (1087) (1481) (732)
Capital WIP 125 236 118 118 Repayment of debt (1) 0 0 0
Debtors 513 562 834 369 Interest Paid (8) (10) (9) (3)
Cash & Bank Balances 683 380 476 596 Divd Paid (incl Tax) (88) (115) (486) (344)
Trade payables 1191 1513 2509 1110 CF from Fin. Activity (47) (162) (563) (454)
Total Provisions 170 265 99 53 Inc/(Dec) in Cash (121) (202) 238 (372)
Net Current Assets 1008 614 353 848 Add: Opening Balance 804 683 353 591
Total Assets 5337 6408 8479 7732 Closing Balance 683 481 591 220

Narnolia Securities Ltd 4

Please refer to the Disclaimers at the end of this Report


NEUTRAL
V-GUARD Industries Ltd. 2-Feb-17

Result Update 3QFY17_Performance Highlights:


CMP 205 Net Revenue from operations for the Third Quarter, ending December 31, 2016-
Target Price 206 17 fiscal, was Rs.460cr; an increase of 10.40% over corresponding period of' last
financial year (Rs.416cr). Profit after Tax for the Quarter, ending December 31,
Previous Target Price
2016-17 fiscal, was Rs. 28cr; showing an increase of 30% over corresponding
Upside 0% period of last financial year (Rs. 21cr). Pumps have driven growth for the quarter
Change from Previous - under review along with Fans and Solar Water Heaters.

Market Data 3QFY17 Concall Highlights:


BSE Code 532953
NSE Symbol In FY18 management expects 15% growth and 13-15% growth in next couple
VGUARD
of years.
52wk Range H/L 226/78.66
Mkt Capital (Rs Cr) 6,218 Tax rate for Q4FY17 will same as Q3FY17 i.e. 25% and for FY18 it will be
Av. Volume('000) 750 around 25-26%.
Nifty 8554 South market was affected by demonetization specially Kerala. As per the
management thing are coming back to normal in Q4FY17.
Stock Performance Total capex for Sikkim expansion plant is Rs 40cr for manufacturing Stabilizer
1Month 1Year YTD and Electric water heater and both are expected to commence in March 2017.
Absolute 20.9 121.7 11.3
Rel.to Nifty 15.3 107.1 11.6 Tax benefit in Himachal Pradesh plant will be till 2019 and in Sikkim plant will
be for 8 years.
Share Holding Pattern-% There is some price hike in Q3FY17 and management expects Fan, Pump and
3QFY17 2QFY17 1QFY17 Stabilizer price will increase by 3-7% and price of wire will be increase by 7-8% in
Promoter 65.4 65.5 65.7 coming quarters.
Public 34.6 34.5 34.3 Outlook and Valuation
Others -- -- --
Total 100.0 100.0 100.0 Demonetization had some impact on some product segment and sales growth of
some of the products had come down from earlier quarters. Sales in Tamil Nadu
Region were affected due to the socioeconomic situation prevalent in the State
Company Vs NIFTY
and because of cyclone affecting many parts of Chennai and suburban areas. But
220 VGUARD NIFTY as per the management the business outlook remains positive considering
200 upcoming summer season. We have positive view on this stock in long term but
180 considering demonetization impact and high valuation we maintain "NEUTRAL"
rating on this stock.
160
140
120 Rs in Cr
100 Financials FY13 FY14 FY15 FY16 FY17E
80
Sales(Cr) 1360 1518 1746 1837 2047
EBITDA 110 123 133 178 225
Net Profit 63 70 71 112 169
Bibha Kashyap EBIDTA% 8.1% 8.1% 7.6% 9.7% 11.0%
bibha.kashyap@narnolia.com PAT % 4.6% 4.6% 4.1% 6.1% 8.3%
Narnolia Securities Ltd 5

Please refer to the Disclaimers at the end of this Report


Product wise segmental performance:

Key developments:
A new manufacturing unit at Sikkim is being setup with an investment outlay of Rs 12.50cr (excluding land and building) with
built up area of 60,000 sq. ft. for increasing the capacity of Stabilizer and the unit is expected to commence commercial
production in March, 2017.

Manufacturing unit for Electric water heater at Sikkim with an investment of Rs 25cr (excluding land) with built up area of 80000
sq. ft. is being set up and would commence commercial production in March, 2017.

Backward Integration:

Set up in-house PVC compounding unit at Chavadi, Coimbatore.

Unit expected to commence commercial production from August, 2016

Geography wise performance Copper Prices:

South(Cr) Non south(Cr) Copper price (Indian Rupee per Metric Ton)
1,600,000
356
347

400
340
314

1,400,000
309

306
302

300
296

350
291
291
289

271

1,200,000
250
243

300
217

1,000,000
250
193
167

167

800,000
155

154
149

200
140

134
129

125

125

125

1,199,891
1,323,078
1,334,270

1,219,040
1,272,040
1,231,624

1,153,332
1,026,405

1,068,264
1,303,774

1,088,589

600,000
107

150
965,400

960,237
946,938
950,208
96

400,000
100
200,000
50
-
-

Narnolia Securities Ltd 6

Please refer to the Disclaimers at the end of this Report


Total Debt(Cr): Expanding Geographic Presence
Working capital Term loan
100 100% South Non South
77 71 77 77 79%
80 66 78% 75%
80% 70% 67% 67% 66%
60 41 4438
38 36 34 3731 60%
31
40 2429 2429 26 24
20 13 9 8 7 7 33% 33% 34%
0 2 - 0 40% 30%
22% 25%
- 21%
20%

0%
FY11 FY12 FY13 FY14 FY15 FY16 9MFY17

Strong growth in distributor Network( Nos): In-house Manufacturing Vs. Outsourcing

South Non South In-House Outsourced

500 80%
408 60% 59% 60% 57% 60% 60%
400 328 60%
40% 41% 40% 43% 40% 40%
300 220 216 40%
187 208
200 167 20%
11095 134
10397
100 0%
0 FY11 FY12 FY13 FY14 FY15 FY16
FY11 FY12 FY13 FY14 FY15 FY16

Investment Arguments:

Company's Non- South market is growing fast so management is expecting 15% growth in FY17 and on a long run
company is expecting ~50% sales in the next 3-4 years.
Company's new manufacturing plant sikkim is having income tax & Excise duty exemption for next 8 years. And
having the potential to generate sales of 100 Cr per annum after a year.
Strong construction demand driven by Government ambitious target of housing for all by 2022 will require 111 million
housing units, and will lead to increased demand for electrical goods.
The solar water heater segment is expected grow at a healthy rate going forward as technological advancements
have brought down initial capital costs and considerably reduced the payback period.
Increasing market share across all product lines-Leadership position in its flagship product, voltage stabilizers, with
over 51% market share.
Company will be expanding to the north markets and expand their range in the Kitchen and home appliances range
to cater to a wider audience.

About the Company:


V-Guard Industries Limited is an India-based consumer electrical and electronics company. The company is engaged
in manufacturing, trading and selling a range of products, including voltage stabilizers, polyvinyl chloride (PVC), cables,
pumps and motors, electric water heaters, digital uninterruptible power supply (UPS), fans, ups, solar water heaters,
switchgears and induction cooktops. It operates in three segments: Electronic Products, Electrical / Electro Mechanical
Products and Others. Its manufacturing facilities are located at K.G. Chavady, Coimbatore, Tamil Nadu; at Kashipur,
Utharakhand; at Kala Amb, Himachal Pradesh and at SIPCOT Industrial growth center, Perundurai, Tamil Nadu.

Narnolia Securities Ltd 7

Please refer to the Disclaimers at the end of this Report


Financials Snap Shot
INCOME STATEMENT RATIOS
FY14 FY15 FY16 FY17E FY14 FY15 FY16 FY17E
Revenue 1518 1746 1837 2047 EPS 23 24 37 56
Other Income 5 4 7 11 Book Value 107 126 156 205
Total Revenue 1522 1750 1845 2058 DPS 8 10 15 10
COGS 1131 1290 1312 1390 Payout (incl. Div. Tax.) 32% 41% 41% 17%
GPM 1 1 1 1 Valuation(x)
Other Expenses 178 213 236 303 P/E 20 39 23 21
EBITDA 123 133 178 225 Price / Book Value 4 7 5 6
EBITDA Margin (%) 8% 8% 10% 11% Dividend Yield (%) 1.6% 1.1% 1.8% 0.8%
Depreciation 12 15 15 17 Profitability Ratios
EBIT 111 118 163 208 RoE 22% 19% 24% 27%
Interest 21 21 9 2 RoCE 32% 29% 34% 34%
PBT 94 101 161 217 Turnover Ratios
Tax 24 31 49 48 Asset Turnover (x) 2 2 3 2
Tax Rate (%) 26% 30% 31% 22% Debtors (No. of Days) 51 51 55 58
Reported PAT 70 71 112 169 Inventory (No. of Days) 82 74 57 70
Dividend Paid 23 29 46 29 Creditors (No. of Days) 42 40 30 28
No. of Shares 3 3 3 3 Net Debt/Equity (x) 0 0 0 0

BALANCE SHEET CASH FLOW STATEMENT


FY14 FY15 FY16 FY17E FY14 FY15 FY16 FY17E
Share Capital 30 30 30 30 OP/(Loss) before Tax 94 101 161 217
Reserves 289 348 441 587 Depreciation 12 15 15 17
Net Worth 318 378 471 617 Direct Taxes Paid (19) (31) (50) (48)
Long term Debt 31 21 6 0 OP before WC changes 132 140 192 236
Short term Debt 68 37 2 2 CF from Op. Activity 111 88 131 79
Deferred Tax 10 9 7 7
Total Capital Employed 349 399 476 617 CAPEX (33) (12) (15) (45)
Net Fixed Assets 170 164 161 189 CF from Inv. Activity (28) (15) (32) (45)
Capital WIP 3 1 0 0 Repayment of LTB (8) (9) (22) 0
Debtors 212 244 279 325 Interest Paid (24) (21) (7) (2)
Cash & Bank Balances 3 2 8 11 Divd Paid (incl Tax) (12) (16) (16) (29)
Trade payables 175 193 151 157 CF from Fin. Activity (93) (74) (94) (37)
Total Provisions 35 44 40 41 Inc/(Dec) in Cash (10) (1) 5 (2)
Net Current Assets 261 281 322 436 Add: Opening Balance 12 2 2 8
Total Assets 679 725 717 858 Closing Balance 2 2 7 5

8
Narnolia Securities Ltd

Please refer to the Disclaimers at the end of this Report


BUY
KEC International 31-Jan-17

Result Update
CMP 148 KEC has reported mix set of numbers in Q3FY17. Net income has come
Target Price 185 down by 6.5% YoY to Rs. 1965 Cr to Rs. 2101 Cr on back of
Previous Target Price 165 demonetization, delay in conversation of L1 orders into firm order and land
Upside 25% acquisition issue at Jammu and Kashmir project. But on the contrary
EBITDA margin has improved by 135 bps to 9.3%, which is the highest in
Change from Previous 12%
last 21 quarters. KEC faced some serious issue on logistic & subcontracting
front due to demonization in November and December but now situation is
Market Data under control and land acquisition issue has also been resolved.
BSE Code 532714 Management is confident to achieve 5% revenue growth in FY17E despite
NSE Symbol KEC 3% negative revenue growth during the 9 months of the current year and 10-
52wk Range H/L 156/97 15% revenue growth in FY18E.
Mkt Capital (Rs Cr) 3,809
Av. Volume 59620 Healthy Order Book:-
Nifty 8561
Current order book stands at Rs. 11175 Cr i.e. 1.3x of the trailing twelve
Stock Performance months revenue with Rs. 3800 Cr of orders in L1 position. Order intake
1Month 3 Month 1Year during the 9 months stood at Rs. 8634 Cr, up by 26% YoY. Management
Absolute 6.1 19.7 20.3 expects healthy orders from SEBs and railways which will provide robust
revenue visibility going ahead. Currently, SEA plant (Brazil) is running at
Rel.to Nifty 0.4 20.6 5.0
100% capacity utilization with 2 years orders in hand.
Share Holding Pattern-%
Operating Margin continues to be strong:-
3QFY17 2QFY17 1QFY17
Promoters 51% 51% 51% EBITDA margin in Q3FY17 has improved by 135 bps YoY to 9.3%. The
Public 49% 49% 49% Improvement in EBITDA margin was attributable to strong performance by
SAE (500 bps up YoY), railway business (negative in Q3FY16) and cable
business (negative in Q3FY16). Management is working on cost front in
cable business to improve margin and we expect margin improvement in
railway business as the revenue increase. Management has guided 9%
Company Vs NIFTY EBITDA margin in FY17 and improves further in FY18. KEC has bring down
140 KEC NIFTY account receivables days from 246 days in FY16 to 218 days at the end of
130 the Q3FY17 and we anticipate it to improve further based on retention
money release from Saudi project which result into improvement in bottom
120
line going forward.
110
In Rs. Cr.
100
Financials Q3FY16 Q2FY17 Q3FY17 YoY % QoQ %
90
Sales 2101 2121 1965 -7% -7%
80 EBITDA 167 185 182 9% -2%
Jul-16
Feb-16

Sep-16
Jan-16

Jan-17
Dec-16
Jun-16

Aug-16
May-16

Oct-16
Nov-16
Apr-16
Mar-16

Net Profit* 23 72 47 102% -35%


EBIDTA% 8.0% 8.7% 9.3% 130 bps 60 bps
Sandip Jabuani PAT 1.2% 3.1% 3.2% 200 bps 10 bps
* Net profit is excluding other comprehensive income
sandip.jabuani@narnolia.com
Narnolia Securities Ltd 9
Please refer to the Disclaimers at the end of this Report
Railway :- Strong Revenue growth driver
Management has cut down the revenue growth to 5% in FY17. But maintain the railway top line guidance of 450-500 Cr in FY17
and Rs.1000 Cr for the FY18E based on the huge opportunity in railway electrification project. Railway Ministry has set target to
award 2000 Km, 4000 Km and 6000 km of overhead electrification orders in FY17, FY18 and FY19 respectively. In railways, KEC
commands 20% market share, which may translate into approx.2400 Cr of expected new orders in FY18E. Railway ministrys
focus on execution helps contractor to execute project smoothly and timely. We expect improvement in EBITDA margin based on
incremental volume and speedy execution.

Result Highlights of Q3FY17

Net sales de grew by the 6.5% YoY to Rs. 1965 Cr in Q3FY17 as compared to Rs. 2101 Cr in Q3FY16
EBITDA margin has improved by 135 bsp to Rs. 182 Cr as against Rs 167 Cr on account of 10% plus margin in T&D and
improved performance of railway and SAE business.
KEC has reported 102% YoY growth in PAT with 200 bps improvement on back of higher EBITDA
During the quarter KEC has secured Rs.2706 Cr of new orders in Q3FY17 (up by 20% YoY) and Rs. 8634 Cr in 9 months of
FY17, which is up by 26% YoY
Order book as on 31st December stands at Rs.11175 Cr, ie. 1.3x of TTM revenue.

Managment / Concall Update

Demonetization, delay in conversation of L1 orders into firm order and land acquisition issue at Jammu and Kashmir project led
to de growth in revenue
Management has guided 5% and 10-15% revenue growth in FY17 and FY18 respectively.
EBITDA margin in FY17 will be 9% and it will improve further in FY18
EBITDA margin of SAE tower was 8-9% in Q3FY17
Faced some serious issue in logistic in November and December month due to demonization but now situation is under control.
Losses in Cable segment has come down significantly on YoY
Revenue loss of 50-60 Cr due to demonization
Maintain revenue guidance in railway segment of Rs. 450-500 Cr and Rs.1000 cr in FY18
Interest cost as % of sales will be 2.7% in FY18
Significant improvement in solar business from next year as the KEC is in L1 position of large project. EBITDA margin is slightly
below than normal margin but cash generating on PBT level
Expect to bring down AR collection days to 180 from 218 days based on the release of retention money from Saudi projects
Land acquisition issue at Jammu and Kashmir project has been resolved
Expect more orders from SEBs compare to PGCIL

Outlook and Valuation:-


Revenue growth during the 9 months was in turmoil due to lower commodity price and demonetization. But the operating margin
continuous to accretive during the period. We expect 5% and 15% revenue growth in FY17E and FY18E based on the strong
traction in Transmission and railway business with strong operating margin. We anticipate boost in the bottom line on account of
strong AR collection which will result into lower interest cost going ahead. At current price of Rs. 148 stock is trading at 2.2x P/B
and 5.8X of EV/EBITDA. Considering the strong operating margin and healthy order book we are bullish on the stock. Hence, we
upgrade our target price to Rs. 185 from Rs.165 and recommend to BUY.

Narnolia Securities Ltd 10

Please refer to the Disclaimers at the end of this Report


Quartely Performance 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY% QoQ%
Net Sales 2,140 2,021 2,491 1,903 1,998 2,076 2,530 1,763 2,098 1,935 -7% -8%
Other Operating Income 33 32 30 20 23 25 29 22 23 30 19% 27%
Net Sales 2,173 2,053 2,521 1,923 2,021 2,101 2,559 1,785 2,121 1,965 -7% -7%
Change in Invenotry 16 41 76 (13) (1) (39) 74 (49) 8 (11)
RM Cost 1,276 1,053 1,243 900 1,025 924 1,282 870 1,014 854 -8% -16%
COGS 1,292 1,094 1,318 887 1,024 885 1,356 821 1,022 843 -5% -18%
Employee Expenses 149 145 144 158 161 155 168 173 187 186 19% -1%
Other Expenses 225 225 275 203 260 243 279 215 238 243 0% 2%
Erection & Subcontracting 386 485 599 489 421 609 533 390 441 459 -25% 4%
Excise Duty 45 41 36 47 52 27% 11%
Total Expenditure 2,052 1,949 2,336 1,782 1,866 1,934 2,336 1,635 1,936 1,783 -8% -8%
EBITDA 121 105 185 141 155 167 223 150 185 182 9% -2%
Depreciation 22 23 22 29 21 31 22 29 31 30 -5% -4%
EBIT 99 82 162 112 134 136 201 121 154 152 12% -2%
Intreset 91 81 71 71 68 69 71 72 60 58 -16% -2%
PBT 9 136 100 44 69 69 132 54 100 101 46% 0%
Tax (12) 70 37 27 25 43 52 23 35 38 -11% 8%
PAT 20 66 63 17 44 26 80 31 65 63 139% -4%

Margin Profile YoY (+/-) QoQ (+/-)


Gross Margin 40.5% 46.7% 47.7% 53.9% 49.3% 57.0% 47.0% 54.0% 51.8% 57.1% 10 530
EBIDTA 5.6% 5.1% 7.3% 7.3% 7.7% 7.8% 8.7% 8.4% 8.7% 9.3% 150 60
EBIT 4.5% 4.0% 6.4% 5.8% 6.6% 6.7% 7.9% 6.8% 7.3% 7.7% 100 40
PAT 0.9% 3.2% 2.5% 0.9% 2.2% 1.8% 3.1% 1.7% 3.1% 3.2% 140 10

Order Book 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY% QoQ%
Transmission 7,356 6,921 7,131 7,903 7,207 7,028 7,087 7,334 7,442 8,054 15% 8%
SAE 931 876 951 948 1,086 937 1,134 1,769 1,510 1,342 43% -11%
Cables 279 263 570 632 592 469 472 104 216 224 -52% 4%
Railways 279 263 475 738 691 562 567 936 1,186 1,342 139% 13%
Water 466 438 380 316 - 281 189 208 216 112 -60% -48%
Solar 9 9 - - 296 75 38 52 183 101 34% -45%
Total 9,320 8,770 9,508 10,537 9,872 9,351 9,487 10,403 10,753 11,175 20% 4%

Order Intake
Transmission 583 1,478 1,909 2,375 1,024 1,595 1,370 1,469 1,738 1,651 4% -5%
SAE 231 485 421 123 181 247 206 678 465 298 20% -36%
Cables 253 412 393 309 181 270 206 198 279 244 -10% -13%
Railways - 48 84 278 90 90 56 424 528 460 412% -13%
Water - - - - - - - - - -
Solar 11 5 3 - 30 45 38 57 93 54 20% -42%
Total 1,078 2,428 2,811 3,085 1,506 2,246 1,877 2,825 3,103 2,706 20% -13%

Narnolia Securities Ltd

Please refer to the Disclaimers at the end of this Report 11


Segment Revenue 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY% QoQ%
Transmission-Rest 1,692 1,531 1,976 1,355 1,506 1,557 1,887 1,184 1,529 1,273 -18% -17%
Transmission SAE 184 214 222 187 201 177 266 255 261 227 28% -13%
Total Transmission 1,876 1,745 2,198 1,542 1,707 1,734 2,153 1,439 1,790 1,500 -13% -16%
Cables 237 254 217 259 262 230 292 245 228 278 21% 22%
Railway 29 22 58 45 34 81 50 70 66 105 30% 59%
Water 30 32 38 32 21 13 37 18 19 20 54% 5%
Solar 9 0 - 40 52 14 26 59 48% 127%
Total 2,172 2,053 2,520 1,878 2,024 2,098 2,584 1,786 2,129 1,962 -6% -8%

Order Book Order Intake

Order Book Book to bill Order Intake Growth YoY%


12,000 2.00 10000 0.3
1.80 9000
10,000 0.25
1.60 8000
8,000 1.40 7000 0.2
1.20 6000 0.15
6,000 1.00 5000
0.80 4000 0.1
4,000 0.60 3000 0.05
2,000 0.40 2000
0.20 0
1000
- - 0 -0.05
FY12 FY13 FY14 FY15 FY16 Till FY12 FY13 FY14 FY15 FY16 Till
Q3FY17 Q3FY17

Strong Growth in Railway Segment :- Margin Trend :-

Railway Order Book Growth YoY%


EBITDA M % PAT M %
1,600 160%
1342 140% 10%
1,400
1,186 120% 9%
1,200 8%
100%
1,000 936 7%
80%
800 738 691 60% 6%
562 567 40% 5%
600 475
20% 4%
400 279 263 3%
0%
200 2%
-20%
1%
- -40%
0%
2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

Narnolia Securities Ltd 12

Please refer to the Disclaimers at the end of this Report


About the Company :-

KEC International Limited is an India-based company, engaged in infrastructure engineering, procurement and construction
(EPC). The Company is also a manufacturer of power cables and telecom cables in India. The Company operates in four
business verticals, which include power transmission and distribution, cables, railways and water. The Company is also a provider
of turnkey solution in the railway infrastructure EPC space. The Company has powered infrastructure development across 50
countries in developed, developing and emerging economies of South Asia, the Middle East, Africa, Central Asia, the United
States and South East Asia. The Company has eight manufacturing facilities for lattice towers, monopoles, hardware and cables.

Power Transmission
Cabels Railways Water
& Distribution

Transmission Lines Substations Power Cabels


Civil & Track Work Water Resource
LT/HT/EHV
Managment
Lattice Distribution Platforms &
Network Telecom Cabel : Buildings
Towers/Poles
Optical Fiber and Water & Waste
Telecom/Tower/ Jelly filled Signalings Water Treatment
Hardware EPC/OPGE

Electrification

Supply EPC

Manufacturing Facilities

Tower Manufacturing
India, Brazil and Vadodara (Gujarat)
Mexico Mysore (Karnataka)
(SAE Annual Silvassa (Union
production capacity Territory)
100000 MTs)

Narnolia Securities Ltd 13

Please refer to the Disclaimers at the end of this Report


Financials Snap Shot
INCOME STATEMENT RATIOS
FY14 FY15 FY16 FY17E FY14 FY15 FY16 FY17E
Revenue 7902 8468 8516 8943 EPS 2.6 6.3 7.4 11.5
Other Income 14 146 10 10 Book Value 46.3 51.7 58.8 66.9
Total Revenue 7916 8614 8527 8954 DPS 0.6 0.7 2.2 3.4
EBITDA 493 512 679 760 Payout (incl. Div. Tax.) 23% 11% 30% 30%
EBITDA Margin (%) 6% 6% 8% 9% Valuation(x)
Depreciation 71 88 88 84 P/E 26.0 12.8 16.4 16.0
EBIT 423 424 592 676 Price / Book Value 1.5 1.5 2.1 2.8
Interest 263 309 277 274 Dividend Yield (%) 0.87% 0.88% 1.82% 1.86%
PBT 173 261 325 412 Profitability Ratios
Tax 88 100 133 144 RoE 6% 12% 13% 17%
Tax Rate (%) 1 0 0 0 RoCE 24% 20% 28% 31%
Reported PAT 67 161 192 268 Turnover Ratios
Dividend Paid 15 18 57 80 Asset Turnover (x) 1.1 1.1 1.0 1.1
No. of Shares 26 26 26 26 Debtors (No. of Days) 176 166 193 193
Inventory (No. of Days) 45 38 38 38
Creditors (No. of Days) 148 143 126 126
Net Debt/Equity (x) 0.51 0.55 0.40 0.35

BALANCE SHEET CASH FLOW


FY14 FY15 FY16 FY17E FY14 FY15 FY16 FY17E
Share Capital 51 51 51 51 OP/(Loss) before Tax 155 261 325 412
Reserves 1140 1278 1460 1648 Depreciation 71 88 88 84
Net Worth 1192 1330 1512 1700 Direct Taxes Paid 113 122 135 144
Long term Debt 603 737 602 602 Op. before WC Change 499 596 853 770
Short term Debt 1207 1308 1723 1723 CF from Op. Activity (9) 153 (51) 478
Deferred Tax 73 70 66 66 Capex 161 90 78 0
Total Capital Employed 1794 2067 2114 2302 CF from Inv. Activity (136) 125 18 0
Net Fixed Assets 992 881 860 860 Repayment of LTB 305 640 264 0
Capital WIP 18 16 12 0 Interest Paid 263 309 277 274
Debtors 3808 3853 4495 4729 Divd Paid (incl Tax) 15 17 58 80
Cash & Bank Balances 144 206 111 0 CF from Fin. Activity 132 (216) (63) (354)
Trade payables 3213 3325 2939 3087 Inc/(Dec) in Cash (14) 62 (96) 124
Total Provisions 125 122 114 114 Add: Opening Balance 146 132 194 111
Net Current Assets 1374 1668 2151 2187 Closing Balance 132 194 98 235
Total Assets 7411 7745 8138 8322

Narnolia Securities Ltd 14

Please refer to the Disclaimers at the end of this Report


Hold
INDIAN OIL CORPORATION LTD. 01-Feb-17

Company Update Indian Oil Corporation has reported revenue growth of 13% YoY to Rs.
CMP 370 93117 Cr as compared to Rs. 82676 Cr in the corresponding quarter of
Target Price 410 FY16. EBITDA margin has also improved by 190bps to 8% in 3QFY17.
Previous Target Price 410 The average GRM for period April to Dec 2016 is USD 7.36 per BBL as
compared to USD 5.83 per BBL in the same period of FY16. The increased
Upside 11%
GRM is the result of higher capacity utilization in Paradip refinery. During
Change from Previous - the quarter,Refinery throughput has increased from 14.42 MMT to
16.37MMT YoY and pipeline throughput has slightly declined from 20.49
Market Data MMT to 20.23 MMT YoY.
BSE Code 530965
Q3FY17_Result Update
NSE Symbol IOC
52wk Range H/L 392/172 Profit after tax has increased by 29% to Rs. 3995 Cr in 3QFY17 as
Mkt Capital (Rs Cr) 1,79,668 compared to Rs. 3096 Cr in the same quarter in FY16.
Av. Volume(,000) 311 Revenue from sale of Petroleum products has increased from Rs. 93261
Nifty 8,585 Cr to Rs. 111212 Cr in 3QFY17.
Revenue from sale of Petrochemicals has increased from Rs. 4205 Cr to
Stock Performance Rs. 4714 Cr in 3QFY17.
1M 3M 12M Revenue from Other business activities has increased from Rs. 2758 Cr
Absolute 15.4 90.2 85.3 to Rs. 2940 Cr in 3QFY17.
Rel.to Nifty 9.9 74.2 75.9 The effective tax rate for 3QFY17 is 35.5% and the company pays total
tax of Rs. 2196 Cr.

Share Holding Pattern-%


3QFY17 2QFY17 1QFY17 Outlook
Promoters 58.3 58.3 58.3
Public 41.7 41.7 41.7 Indian Oil Corporation has equipped with BS VI standard HSD and BS VI
Others standard motor spirit and by October 2017, a new unit will go on stream at
Total 100 100 100 the refinery, where only BS VI standard HSD and high quality motor spirit
will be produced on a mass scale. This will help the company to provide
fuel to the nation as per the fuel standards provided by the government. In
Company Vs NIFTY the month of December 2016, the International crude oil prices have
180 IOC NIFTY soared up which is offset by increasing the realization of petroleum
170
products. Despite short term uncertainties, we are optimistic in the long
160
term. Considering above arguments we recommend HOLD rating in this
150
140
stock while maintaining the previous target price of Rs. 410
130
120
Rs,Cr
110 Financials 2012 2013 2014 2015 2016
100
Sales 408924 461780 488345 449509 355927
90
80 EBITDA 19450 13800 17141 10550 23197
Jul-16
Feb-16

Sep-16
Jan-16

Jan-17
Dec-16
Jun-16

Aug-16

Net Profit 10914 4449 7086 4912 11219


May-16

Oct-16
Nov-16
Apr-16
Mar-16

EPS 45 18 29 20 46
Aditya Gupta P/E 5.8 15.4 9.7 18.2 8.5
aditya.gupta@narnolia.com
Narnolia Securities Ltd 15
Please refer to the Disclaimers at the end of this Report
Recent Events
30 Jan 2017- Odisha government has slapped a notice seeking withdrawal of fiscal incentives given to the PSU's Rs 34,555 crore
Paradip refinery in the state.As per the IOC management, the board had approved investments only in 2009 and the withdrawal of
the VAT concession will reduce by 2 per cent the rate of return it considered for working out the investment.
27 Dec 2017- IOC's Mathura refinery has despatched BS VI high-speed diesel (HSD) to two auto companies to test viability and
compatibility as part of its efforts to provide cleaner fuel for an eco-friendly environment. Though the government has set a very
stringent target of April 2017 for meeting BS IV and April 2020 for BS VI standard fuel quality, the Mathura refinery has completed
the target ahead of the set deadline
7 Dec 2017- IOC, BPCL, HPCL sign deal to set up India's biggest oil refinery. The three firms signed the pact for the 60-million tonne a
year refinery in Maharashtra with IOC as leader of the consortium

Gross Refining Margin

IOC GRM Singapore GRM

9.1 8.7 8.6 8 8.00 7.70


6.7 6.6 6.6 6.2 5.8 6.3 6.3 6.70
5.4 4.7 10.80 5.00 5.10
4.3 9.98
8.80
6.60 7.36
5.20 6.20 4.80 2.30
6.00
4.30
2.40 1.70 2.20 3.00
0.90

(2.00)
(4.80)
(7.70)

Business Model
Indian Oil Corporation Limited is an India-based oil company.
The Companys segments include Sale of Petroleum Products,
Sale of Petrochemicals and Other businesses, which consist of
sale of gas, explosives and cryogenics, wind mill and solar power
generation and oil and gas exploration activities.The Companys
subsidiaries include Indian Oil (Mauritius) Ltd, IOC Middle East
FZE, IOC Sweden AB, IOCL (USA) INC., Chennai Petroleum
Corporation Ltd and Lanka IOC PLC.It is the largest refining and
marketing company in India. It operates 8 refineries (incl BRPL)
with a capacity of 54.2mmtpa and has a 52% stake in CPCL
(11.5mmt refining capacity). The company controls a refining
capacity of 65.7 mmtpa. It has a pipeline network of >10,300km
(62mmtpa capacity), has 22,372 petrol/diesel outlets and has
interests in petrochemicals and upstream oil and gas. IOC is a
Public Sector Company with 78.9% Government stake.

Narnolia Securities Ltd 16


Please refer to the Disclaimers at the end of this Report
Financials Snap Shot
INCOME STATEMENT RATIOS
FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16
Net Revenue 461780 488345 449509 355927 EPS 18.32 29.19 20.23 46.21
Other Income 3512 3442 4204 2246 Book Value 260 280 283 313
Total Revenue 465291 491787 453713 358173 DPS 5 6 9 12
COGS 414541 432541 399121 289225 Payout (incl. Div. Tax.) 27% 21% 43% 26%
GPM 10% 11% 11% 19% Valuation(x)
Other Expenses 25655 31525 32175 35277 P/E 15 10 18 9
EBITDA 13800 17141 10550 23197 Price / Book Value 1.1 1.0 1.3 1.3
EBITDA Margin (%) 3% 4% 2% 7% Dividend Yield (%) 2% 2% 2% 3%
Depreciation 5692 6360 5219 5919 Profitability Ratios
EBIT 8108 10781 5331 17278 RoE 7% 10% 7% 15%
Interest 7119 5908 4175 3630 RoCE 9% 10% 5% 16%
PBT 4504 8232 5346 15894 Turnover Ratios
Tax 877 3,011 2,143 5,653 Asset Turnover (x) 4.92 4.42 3.84 2.77
Tax Rate (%) 19% 37% 40% 36% Debtors (No. of Days) 10 9 6 9
Reported PAT 4449 7086 4912 11219 Inventory (No. of Days) 53 54 41 43
Dividend Paid 1492 1850 2471 3437 Creditors (No. of Days) 27 30 26 26
No. of Shares 243 243 243 243 Net Debt/Equity (x) 0 1 1 0

BALANCE SHEET CASH FLOW STATEMENT


FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16
Share Capital 2428 2428 2428 2428 OP/(Loss) before Tax 4504 9978 7014 17259
Reserves and surplus 60608 65485 66404 73566 Depreciation 5710 6369 5190 5865
Shareholders' funds 63036 67913 68832.3 75994 Direct Taxes Paid 1169 1896 2344 3250
Long term Debt 35865 36796 30367 42367 OP before Wc 14961 20649 13425 26295
Total Borrowings 88933 58154 50850 71622 CF from Op. Activity 9340 24204 45976 27020
Non Current liabilities 18206 20592 22814 30112 Current investments 784 1120 587 629
Long term provisions 421 443 476 2476 Capex -4178 -8865 -4627 -4183
Short term Provisions 21913 26661 27601 29633 CF from Inv. Activity -9294 -18594 -10177 -13805
Current liabilities 72430 88071 82870 83614 Repayment of Debt 3958 14543 1268 -3309
Total liabilities 241725 266679 233743 241984 Interest Paid -7824 -6872 -5188 -4661
Net Fixed Assets 93927 110527 117088 128434 Divd Paid (incl Tax) -1492 -1850 -2609 -3590
Non Current Investments 3694 8566 8761 8667 CF from Fin. Activity 352 -3125 -38283 -12426
Other non Current assets 1282 1353 202 146 Inc/(Dec) in Cash 398 2485 -2483 789
Current assets 137383 141166 101086 94474 Add: Opening Balance 822 1220 3705 1225
Total Assets 241725 266679 233743 241984 Closing Balance 1220 3705 1221 2014

Narnolia Securities Ltd 17

Please refer to the Disclaimers at the end of this Report


Under Review
Nucleus Software Exports Ltd. 1st Feb 17

Company Update Nucleus Software Exports Limited : Product Software Company


CMP 258 Nucleus Software is a company with strong product focus and is the only Indian
Target Price company with product focus in the BFSI segment. The Banking segment of the
Previous Target Price Indian Financial technology software market accounts to 65-70% of the revenue.
This makes the company hopeful for the future and is working towards building a
Upside
great Product Company. Nucleus Software started its journey of developing
Change from Previous - world class IT products for customers in the banking and financial services space
helping the banks in meeting the diverse challenges posted by global business
Market Data environment and also helping the industry to cope with the ever changing
BSE Code 531209 regulatory landscape. Recently we met the management which helped us to
NSE Symbol understand the business of the company in more depth. Newer solutions are
NUCLEUS
gaining good traction. Going forward, Management is hopeful that increased
52wk Range H/L 303/145
revenue from products and improved cost management will help the company to
Mkt Capital (Rs Cr) 834 improve margins. We are keeping eye on the stock but currently, we do not have
Av. Volume(,000) 275 any rating for the stock.
Nifty 8,561

About the Company


Stock Performance
1M 3M 12M Nucleus Software is the leading provider of lending and transaction
Absolute 1.6 -1.4 22.8 banking products to the global financial services industry. Its software
Rel.to Nifty -3.9 -8.1 8.5 powers the operations of more than 150 companies in 50 countries,
supporting retail banking, corporate banking, cash management, internet
banking, automotive finance, and other business areas.
Share Holding Pattern-% It is known for its world-class expertise and innovation in lending and
3QFY17 2QFY17 1QFY17 transaction banking technology.
Promoters 60.6 60.6 60.6
It has two flagships products :
Public 39.4 39.4 39.4
FinnOne, 10 time winner - Worlds Best Selling Lending Solution.
Others - - - FinnAxia, an integrated global transaction banking solution used by
banks worldwide to offer efficient and innovative global payments and
Total 100.0 100.0 100.0
receivables, liquidity management and business internet banking
services.
Company Vs NIFTY
Continued R&D effort and investment enables Nucleus to maintain a
technology edge in rapidly evolving market and introduce new innovative
products & solutions. Nucleus Software is very strong on IPR and
generates 70% revenue from IPR led business & services.

Rs,Cr
Financials 2012 2013 2014 2015 2016
Sales 282 294 346 353 349
Net Profit 35 45 64 65 32
ROE 11% 13% 16% 15% 7%
P/B 0.6 0.7 1.8 1.3 1.4
BINEETA KUMARI Div Yield 4.02% 4.15% 2.76% 2.92% 2.59%
bineeta.kumari@narnolia.com
Narnolia Securities Ltd 11
Please refer to the Disclaimers at the end of this Report
NUCLEUS

Q3FY17 Result Highlights


Stable 3QFY17, saw upward movement of 25% over last three months.
The Company reported 93 Cr revenue for the quarter in comparison to Rs 87 Cr in the corrosponding Q3 of the previous year. Product
business for the quarter stood at Rs 72 Cr in 3QFY17 as compared to Rs 65 Cr in 3QFY16. EBITDA for the quarter was Rs 14 Cr as
comparison to Rs 7 Cr in 3QFY16. Net Profit stood at Rs 16 Cr in 3QFY17 in comparison to Rs 7 Cr in 3QFY16. Seen largely as a
beneficiary of demonetisation, the company saw upward movement of 25% over last three months. However, it saw a decline (-3%) in
revenue on a quarter-on-quarter (Q-o-Q) basis.

Business Highlights

>>Added 2 new customers and won 5 new product orders, during the quarter.
>>8 Product modules implementations were completed worldwide.
>>Won an order in the Middle East for latest product offering in Lending Analytics.
>>Won the third deal for cloud based FinnOne Neo lending solution deployment for a leading Non-Banking Finance company (NBFC) in
India.
>>Announced the availability of PaySe Digital Cash Solution in 3 new form factors : Smart watch, band, and micro SD card. By
increasing the form factors supported, beyond the original hardware wallet and Near Field Communication (NFC) card, PaySe has now
opened a range of new use cases for digital cash.
>>The global strength of employees stands at 1669 during the quarter.

Management Takeaways

>>The company has right mix of innovative products to monetise the cash crunch scenario. However it will take some time for the
benefits to trickle down to growth in revenue.

>>The products such as PaySe is getting good acceptance overall on a conceptual level and will contribute to growth going
forward.

>>Increased revenue from products and improved cost management will enable the company to see improved margins going
forward.

>>Newer Solutions are gaining good tarction. Cloud lending solution has gained the third customer since it was launched in the
middle of last year and newly launched lending analytics solution has gained its second customer.

>>The cash balance on the books of the company is approximately Rs 430 crore and the company is allocating a significant
amount towards acquisitions, and the company has formed a dedicated team for M&A.

>> In terms of foreign currency hedges, on Dec 31st the company had USD 4.8 million dollars of forward contracts
at an average rate of 69.05. There is a mark-to-market gain of Rs. 10.47 lakhs which is taken to
hedging reserve in the balance sheet.

>>On the product side, the Co. had the new version released of both origination and servicing of the lending product. Also they
added a couple of new lines of businesses, feature enrichment, which continues to maintain the innovative lead over the rest of
the competition risk market.

Narnolia Securities Ltd 19

Please refer to the Disclaimers at the end of this Report


NUCLEUS

Product Description
Lending :

>>FinnOne Neo : FinnOne Neo is the next-generation lending solution built on an advanced technology platform, designed to shape the
future of lending across Retail, Corporate and Islamic sectors. FinnOne Neo supports both cloud and on-premise deployments.

>>Lending Analytics : Lending Analytics solution focuses on the four key tenets of efficient end-to-end loan lifecycle management: Improved
Lead Generation, Faster On-boarding, Comprehensive Loan Servicing and Efficient Delinquency Management.

>>Lending Mobility : The mobile lending solution of Nucleus Software helps banks manage the end to end loan life cycle of their customers
on mobile. The solution is made up of modules for customer acquisition, loan servicing, loan operations and delinquency management.

Transaction Banking :

>>Integrated Transaction Banking Suite FinnAxia : FinnAxia, integrated global transaction banking suite, offers the capability to swiftly
address corporate customer's liquidity management needs and provides end-to-end solutions from Receivables, Payments and Liquidity
Management to Financial Supply Chain Management, with enhanced customer satisfaction.

New Product Launches


Created FinnOne Neo for Mutuals
FinnOne Neo for NBFCs
FinnOne NeoTM made available in the cloud
Launched PaySeTM, the worlds first offline digital cash solution
Launched FinnOne Axia 3.0
Launched Analytics products
Mobility Product : mApply

About PaySe (Innovative twist to the world)


Worlds first offline digital cash solution designed and created with an aim to democratize money.
Description of the product
A crypto coins or electronic coins on a device is created and these coins can be downloaded from our bank account via, as we
call, Palm ATM, which is a smart phone. Once coins are downloaded either on our device or on our card, we call PaySe card or
the device is call Purse, once coins are downloaded on Purse or on PaySe card then it is as good as cash and then we can
transact with others who have a similar device and we can use our card to make the payment.
Currently, PaySe gone live with two MFIs.
Narnolia Securities Ltd 20

Please refer to the Disclaimers at the end of this Report


NUCLEUS

About mApply
A new mobility product module, mApply, as part of the FinnOne Neo mobility suite, aimed at empowering banks in digitizing their complete
loan lifecycle. It enables bank customers to select the best offer and submit a paperless loan application within a minute. This process
can be easily completed on mobile without any need to visit the bank branch. mApply will not only send intimation of application
submission but also help the customers track their loan application though conditional and full approval phases.

Historical Journey

>>The journey started with humble beginnings small office


1986 space in Thyagraj Nagar, New Delhi.
>>First customer comes on board, a leading paper
manufacturer.

>>India witnesses a substantial increase in software demand.


>>A manufacturer of advanced display systems and a flagship
1987 company, part of a huge enterprise comes on board as a
customer.

>>The company witnesses a huge breakthrough An exclusive


1988 relationship with a leading multinational bank begins

>>The company expands operations to Mumbai and Chennai.


1989 >>The teams strength grows from pillar to post with 120
members

>>Nucleus Software goes global with its entry into Singapore


1994

>>Nucleus Software goes public. The IPO was oversubscribed


1995 by four times.
>>The company identifies the core needs of the Indian banker
and develops products & solutions accordingly.

>>The company started focused product development to cater


1996
to the dynamic needs of the customers

>>Indias second largest private sector bank chooses Nucleus


Software product to revolutionize automobile sector. They got
1998 their 1st client in 1998 : HDFCBANK in FinnOne.

Narnolia Securities Ltd 21

Please refer to the Disclaimers at the end of this Report


NUCLEUS

1999 >>Nucleus Software opens its first office in US

>>The flagship product, FinnOne goes live in 37 countries


2000 across three continents.

>>Nucleus Software expands operations in Thailand and UK.


2001

>>The company is awarded 75th rank in the listing of the Top


250 Fastest Growing technology companies in Asia Pacific by
2002 Deloitte and Touche Tohmatsu.
>>Nucleus Software ranked amongst the Top 5 product
companies by NASSCOM.

2004 >>Nucleus Software establishes a new offshore development


center in Pune.

2005 >>Nucleus Software establishes its foothold in Manila and Los-


Angeles.

2007 >>Nucleus Softwares flagship product FinnOneTM is ranked


Worlds No. 1 Selling Lending Software Product by IBS
Publishing.

2008 >>Nucleus Software is ranked amongst Indias Top 15 Exciting


Emerging Companies to work for by NASSCOM.

>>Nucleus Software's FinnOne powers a major auto finance


2009 firm in India.
>>One of the leading Nigerian bank goes live on Nucleus
Software's FinnOne banking solution.

>>Nucleus Software partners with a leading bank in Turkey.


>>Nucleus Software wins Gold shield for Excellence in
2011
Financial Reporting, 2010 by Institute of Chartered
Accountants of India (ICAI).

Narnolia Securities Ltd 22

Please refer to the Disclaimers at the end of this Report


NUCLEUS

>>Nucleus Software launches its flagship product, FinnOne


on mobile delivering a combination of functionally rich, highly
flexible, secure and scalable solution.
2013
>>Nucleus Software wins the NASSCOM Corporate award for
Excellence in Diversity and Inclusion 2013 under the category
of Best IT services & Product Company

>>Nucleus Software launches FinnOne Neo End-to-End


Loan Lifecycle Management.
2014 >>International Banking Systems (IBS), UK awards Nucleus
Softwares flagship product FinnOne as the Global No. 1
Best Selling Lending Banking System for the 6th consecutive
year.
>>Nucleus Software launches FinnAxia A game changing
transaction banking product suite.

>>Launched PaySe, worlds first offline digital cash solution


2015
designed and created with an aim to democratize money.

>>Recognized as one of the five most significant mobile


2016 banking solution vendors by Forrester Research, Inc. in The
Forrester Wave.
>>Won the Model Bank Vendor 2016" award by Celent

Exchange Rate
The operating currency of the Parent Company is Indian Rupees. Majority of Company's expense (excluding expenses by Nucleus Software
Solutions Pte Ltd , Singapore and our Japan and USA Subsidiaries) are also incurred in rupees. However, 80% of the Company's revenue are in
foreign currency. With revenues being earned in foreign currencies, and costs being in Indian rupees, adverse fluctuations of exchange rate
could impact the profitability of the business.
Company seek to reduce the effect of exchange rate fluctuations on operating results by taking foreign exchange forward contracts to cover a
portion of outstanding accounts receivable and limited hedging against appreciation of the Rupee. We are also considering "options" for
reducing the risk

The Way Forward

Developing a customer-centric business model,simplifying business and operating models, enabling innovation, and proactively managing
risk, regulations and capital are some of the key elements, which, if handled carefully, can help banks win customers and generate long-term
growth. As a pioneer in providing solutions to the banking and financial services industry, Nucleus Software is committed to helping their
customers achieve this and do much more.

Narnolia Securities Ltd 23

Please refer to the Disclaimers at the end of this Report


NUCLEUS

Net Sales & PAT


Net Sales PAT

120

100 93 96 93
86 90
85 85
80

60

40

20 14 14 15
7 11
7 5
-
1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

EBITDAM% & PATM%

PAT % EBIDTA %
18.0% 25.0%
15.9%
15.2%
16.0% 14.3%
14.0% 20.0%
12.1%
20.0%
12.0%
15.0%
10.0% 8.0% 8.1% 15.4%
14.9%
8.0%
5.4% 10.0%
6.0% 10.4%
4.0% 5.0%
6.9%
2.0% 5.2%
0.0% 2.2% 0.0%
1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

Revenue by geography segment % 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
INDIA 15% 16% 22% 24% 25% 26% 28%
FAR EAST 15% 16% 17% 18% 17% 15% 16%
SOUTH EAST ASIA 24% 25% 20% 21% 23% 22% 20%
EUROPE /U.K. 18% 10% 10% 10% 11% 13% 13%
AMERICAS 0% 0%
MIDDLE EAST 16% 16% 17% 16% 14% 14% 14%
AFRICA 5% 4% 3% 4% 3% 2% 2%
AUSTRALIA 7% 10% 7% 4% 5% 6% 5%
REST OF THE WORLD 1% 2% 3% 3% 2% 2% 2%
Total 100% 100% 100% 100% 100% 100% 100%

Order Book Rs Cr 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17


PRODUCTS 293 285 302 315 325 299 301
PROJECTS & SERVICES 54 63 41 47 45 36 45
TOTAL 347 348 343 361 370 335 345

Client Concentration 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17


Revenue From Top 3 Clients 34% 32% 35% 35%
Revenue From Top 5 Clients 45% 47% 43% 40% 41% 45% 45%
Revenue From Top 10 Clients 56% 56% 60% 59%
Narnolia Securities Ltd 24

Please refer to the Disclaimers at the end of this Report


NUCLEUS

Financials Snap Shot


INCOME STATEMENT RATIOS
FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16
Revenue 294 346 353 349 EPS 14 20 20 10
Other Income 314 371 386 397 Book Value 108 123 135 141
Total Revenue 608 717 740 745 DPS 2.9 3.5 3.5 5.8
COGS 0 5 0 0 Payout (incl. Div. Tax.) 21% 18% 18% 58%
GPM Valuation(x)
Other Expenses 84 93 86 91 P/E 5 11 9 19
EBITDA 46 67 66 31 Price / Book Value 1 2 1 1
EBITDA Margin (%) 16% 19% 19% 9% Dividend Yield (%) 90.3% 108.4% 108.4% 180.6%
Depreciation 6 8 12 12 Profitability Ratios
EBIT 40 59 54 19 RoE 13% 16% 15% 7%
Interest 0 1 1 1 RoCE 13% 17% 15% 11%
PBT 60 83 87 44 Turnover Ratios
Tax 15 19 22 11 Asset Turnover (x) 0.0 0.0 0.1 0.0
Tax Rate (%) 25% 23% 25% 26% Debtors (No. of Days) 87 44 87 90
Reported PAT 45 64 65 32 Inventory (No. of Days)
Dividend Paid 9 11 11 19 Creditors (No. of Days) 31 25 27 29
No. of Shares 3 3 3 3 Net Debt/Equity (x) 0 0 0 0

BALANCE SHEET CASH FLOW STATEMENT


FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16
Share Capital 32 32 32 32 OP/(Loss) before Tax FY13 FY14 FY15 FY16
Reserves 318 365 406 425 Depreciation 60 83 87 44
Net Worth 350 397 438 457 Direct Taxes Paid 6 8 12 12
Long term Debt 0 0 0 0 O.profit befo. WC changes -13 -15 -14 -10
Short term Debt 0 0 0 1 CF from Op. Activity 50 70 69 36
Deferred Tax 0 0 0 0 Capital expenditure 75 66 40 45
Capital Employed 350 397 438 457 CF from Inv. Activity 1 5 0 0
Net Fixed Assets 51 62 59 52 Repayment of LT Borrow. -8 -19 -9 -6
Capital WIP 0 1 1 1 Interest Paid -66 -57 -17 -5
Debtors 70 42 85 86 Divd Paid (incl Tax) 0 0 0 0
Cash & Bank Balances 112 99 181 124 CF from Fin. Activity -9 -10 -23 -36
Trade payables 25 24 26 28 Inc/(Dec) in Cash -9 -10 -23 -36
Total Provisions 28 43 26 8 Add: Opening Balance -1 -1 0 5
Net Current Assets 380 398 408 374 Closing Balance 21 20 21 19
Total Assets 459 513 556 581

Narnolia Securities Ltd 25

Please refer to the Disclaimers at the end of this Report


Part book profit
BLUE STAR LTD. 31-Jan-17

Result Update Q3FY17_Result Highlights


CMP 521
Target Price 590 The Company has reported a Total Operating Income of Rs 899 cr for the
Previous Target Price 535 quarter ended Dec 30, 2016 on a consolidated basis as compared to Rs 777
cr in the same period last year representing a growth of 16%. EBITDA Rs 41
Upside 13% cr As compare to 35 cr in the same period last year. Financial Expenses for
Change from Previous - the quarter declined by 22% to Rs 8.75 crores from Rs 11.27 crores in
Q3FY16, mainly due to reduced cost of borrowings.

Market Data
Key Highlights
BSE Code 500067
NSE Symbol The electro-mechanical projects business continuous to be adversely
BLUESTARCO
impacted and it is likely to be further affected due to the expected slowdown
52wk Range H/L 581/306 in the real state sector after demonetization.
Mkt Capital (Rs Cr) 4,975
Av. Volume 10854 The overall prospects of the Unitary-cooling products business continuous
Nifty 8633 to be robust with the addition of new product lines such as water purifiers
and Air purifiers coupled with premium brand equity and distribution
strength.
Stock Performance
1Month 3 Month 1Year The company remains confident of sustaining its performance in the last
Absolute 12.4 55.8 8.0 quarter.
Rel.to Nifty 6.8 41.2 8.3
Outlook and Valuation

Share Holding Pattern-% The electro-mechanical projects business continuous to be adversely


3QFY17 2QFY17 1QFY17 impacted and it is likely to be further affected due to the expected slowdown
in the real state sector after demonetization. The overall prospects of the
Promoter 39.09 39.12 39.04
Unitary-cooling products business continuous to be robust with the addition
Public 60.91 60.88 60.96
of new product lines such as water purifiers and Air purifiers coupled with
Others -- -- -- premium brand equity and distribution strength.The company remains
Total 100 100 100 confident of sustaining its performance in the last quarter. On the other hand
Company Vs NIFTY company is planning to invest Rs 450 crore in the next three years. The air-
conditioner maker is getting consumers focus after entering the residential
160 BLUESTARCO NIFTY air conditioner and water purifier segment. We raised our target from Rs 535
150 to Rs 590 and recommend book part profit near to Rs 530 and keep 50% for
140 booking profit at Rs 590.
130
120
110
100 Rs 'Cr
90 Financials FY13 FY14 FY15 FY16 FY17E
80
Sales 2924 2934 3182 3770 4161
EBITDA 90 150 167 216 245
Net Profit 39 78 54 109 147
Bibha Kashyap EBIDTA% 3.1% 5.1% 5.3% 5.7% 5.9%
bibha.kashyap@narnolia.com PAT% 1% 3% 2% 3% 4%

Narnolia Securities Ltd 26


Investment Arguments :

The wide product range including state-of-the-art inverter split air conditioners, enhanced distribution reach and
premium brand equity will further strenghten the performance of the product business.
The electro-mechanical projects business has been showing signs of improvement in some markets and application
segments.
With additional product lines being added to the Companys portfolio such as water purifiers, Blue Star expects air
coolers and air purifiers, to sustain its growth momentum in FY17 as well.
Substantial repayment of debt would be constrained by working capital needs as the company expects strong
growth in FY17.
The companys Room-Air conditioning (RAC) business has been outgrowing the industry by 10% points over the
last few quarters, resulting in the company consistently increasing its market share.

Order book :

Order book(Cr) Book to bill


1.17

1.12
1.09

2500 1.4
1.07

1.04
1.02

0.97

0.97
0.97

0.95
0.95
0.94

0.93
0.92
0.92
0.92
0.90

0.89
0.89
1.2
0.87

2000
1
1500 0.8
1000 0.6
0.4

1,776
2162
1678
1614

1676
1628

1438
1744
1737

1572
1492
1412
1388
1493
1604

1628
1628

1794
2019

1848

1412

1478

1605

1840
500
0.2
0 0
3QFY12

2QFY13
3QFY13

1QFY14
2QFY14
3QFY14

1QFY15
2QFY15

4QFY15
1QFY16

1QFY17

3QFY17
1QFY12

4QFY13

4QFY14

3QFY16

2QFY17
2QFY12

4QFY12

3QFY15

2QFY16

3QFY16
4QFY16
1QFY13

Trend of Gross Margin and EBITDA Margin(%):

Gross Margin % EBIDTA %

35% 8%
30% 6%
25% 4%
20% 2%
15% 0%
10% -2%
5% -4%
0% -6%
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
3QFY15
4QFY15
1QFY16

3QFY17
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17

Narnolia Securities Ltd 27

Please refer to the Disclaimers at the end of this Report


Recent management commentaries:

The electro-mechanical projects business continuous to be adversely impacted and it is likely to be further affected
due to the expected slowdown in the real state sector after demonetization.
Company has increased market share in room air conditioner business and commercial refrigeration products like
water coolers and deep freezers.
The company remains confident of sustaining its performance in the last quarter.
The overall prospects of the Unitary-cooling products business continuous to be robust with the addition of new
product lines such as water purifiers and Air purifiers coupled with premium brand equity and distribution strength.

Segment wise performance

The Electro-Mechanical Projects and Packaged Air Conditioning Systems business, accounting for 62% of the total
revenues in the quarter, increased by 21% to Rs 554.55 crores from Rs 458.30 crores propelled by Government
infrastructure-related projects. Segment Results registered a marginal increase of 12% to Rs 28.70 crores. While the
revenue and profitability are in line with the expectations during the quarter, poor inflows of orders and escalating input
costs continue to be matter of concern.
The Unitary Products revenues in the quarter increased by 34% to Rs 318.41 crores from Rs 237.66 crore mainly due
to enhanced penetration and higher channel productivity. However, Segment Results grew 10% to Rs 14.54 crores
over the same period owing to significant investments in marketing and product development in the new businesses
such as water purifiers and Air purifiers.

The Professional Electronics and Industrial Systems business revenues increased by 42% to Rs 53.51 crores, while
Segment Results registered an increase of 15% to Rs 7.32 crores on account of changes in the business mix.

Segment wise Revenue(Cr)

Electro Mechanical Projects & Packaged Air-conditioning systems


Cooling Products
Professional Electronics & Industrial Equipment
744

800
327 556

546

700
540

320 516
292 533
505
335 484
481
283 463

459
454
355453

238 439

600
419
396

396
396
382

376

374
368

367

357
349
342
342

334
328

500
70 307

12 246

400
37 205

37 196
43 169
34 169
52 164
59 157

47 156

42 155

300
200
67

60

46
33

32
31

26

25

11
18

100
9

2
9

Narnolia Securities Ltd 28

Please refer to the Disclaimers at the end of this Report


Financials Snap Shot
INCOME STATEMENT RATIOS
FY14 FY15 FY16 FY17E FY14 FY15 FY16 FY17E
Revenue 2934 3182 3770 4161 EPS 8.6 6.0 12.1 16.4
Other Income 18 8 17 20 Book Value 51.2 50.7 73.7 63.3
Total Revenue 2952 3190 3787 4182 DPS 2.3 4.7 7.6 7.6
COGS 2087 2214 2607 2953 Payout (incl. Div. Tax.) 0.3 0.8 0.6 0.5
GPM 1 1 1 1 Valuation(x)
Other Expenses 450 533 600 646 P/E 23.3 51.1 28.1 25.4
EBITDA 150 167 216 245 Price / Book Value 3.9 6.1 4.6 6.6
EBITDA Margin (%) 5% 5% 6% 6% Dividend Yield (%) 1% 2% 2% 2%
Depreciation 38 43 60 53 Profitability Ratios
EBIT 113 124 156 193 RoE 17% 12% 16% 26%
Interest 54 49 43 29 RoCE 24% 26% 23% 33%
PBT 76 43 135 184 Turnover Ratios
Tax 2 -8 27 37 Asset Turnover (x) 1.3 1.5 1.5 1.6
Tax Rate (%) 3% -19% 20% 20% Debtors (No. of Days) 95.9 82.3 80.5 80.5
Reported PAT 78 54 109 147 Inventory (No. of Days) 81.5 78.9 75.6 70.0
Dividend Paid 21 42 68 68 Creditors (No. of Days) 103.2 101.5 105.9 103.5
No. of Shares 9 9 9 9 Net Debt/Equity (x) 0.0 0.1 0.0 0.0

BALANCE SHEET CASH FLOW STATEMENT


FY14 FY15 FY16 FY17E FY14 FY15 FY16 FY17E
Share Capital 18 18 18 18 OP/(Loss) before Tax 76 43 135 184
Reserves 443 438 472 551 Depreciation 38 43 60 53
Net Worth 461 456 663 569 Direct Taxes Paid -19 -26 -52 -37
Long term Debt 0 24 18 18 OP before WC changes 171 186 191 266
Short term Debt 494 373 345 343 CF from Op. Activity 67 215 242 177
Deferred Tax 2 1 2 2
Total Capital Employed 461 479 681 587 Capex -40 -60 -55 -64
Net Fixed Assets 271 279 285 296 CF from Inv. Activity 11 -49 -44 -79
Capital WIP 1 2 6 6 Repayment of LTB 0 25 0 0
Debtors 771 718 831 918 Interest Paid -54 -50 -43 -29
Cash & Bank Balances 68 44 54 53 Divd Paid (incl Tax) -27 -39 -107 -68
Trade payables 830 885 1094 1180 CF from Fin. Activity -26 -190 -205 -100
Total Provisions 73 88 46 44 Inc/(Dec) in Cash 52 -24 -7 -1
Net Current Assets 491 311 417 301 Add: Opening Balance 17 68 44 54
Total Assets 2336 2175 2590 2617 Closing Balance 68 44 54 53

Narnolia Securities Ltd 29

Please refer to the Disclaimers at the end of this Report


N arnolia Securities Ltd
201 | 2nd Floor | Marble Arch Bu ild ing | 236B-AJC Bose
Road | Kolkata-700 020 , Ph : 033-40501500
email: narnolia@narnolia.com,
w ebsite : w w w .narnolia.com

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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
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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
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