The Growth Pitch!

DART Research Tel: +91 22 40969700 E-mail: [email protected]

February 01, 2021

February 01, 2021 2

Budget 2021-22

THE GROWTH PITCH! The budget proposals, announced today by the FM, put out a spending led growth plan for the Covid impacted economy. The proposals project a 14.4 % GDP growth for FY22 at USD 3.05 trillion (conv rate @ 73 for USD) which seem realistic given the 9.5% contraction that we saw in the covid hit FY21. The last six years of the Modi Govt have made the market realise the centre of left approach and hence the expectations were not too high – against that the growth focus has come out as a surprise and hence the positive market reactions. In particular the capital spending is proposed to be higher and in infra and healthcare that has got us and markets at large excited enough. We feel that the projections are realistic and the implementation remains key.

The big positive . Realistic assumptions for GDP at 14.4% for FY22 as well as key revenue heads. . No changes to the direct tax (read hike). . Significant budget hike to capital spending especially infra and healthcare. . Divestment target seems to be a spillover of underachieved FY21 target – hence no major supply overhang. . No impact seen of higher duties on petrol / diesel et al – to be adjusted against existing duties – net no impact.

What’s fallen short . Bank recap set at Rs. 200 bn – lower than our estimates (Rs. 300 bn) but it may have to be seen with the proposed ARC for stressed assets. . No hike in interest deduction for housing beyond affordable – real estate is a big driver of demand across raw materials and durables.

DART Preferred Picks Large Cap Mid Cap Small Cap , Alkem, , ACC, CG Consumer, , Asahi India Glass,Birla Corp, , , HCL Tech, Indian Hotel, KEC, Navin Fluorine, DCB Bank, KEI Ind., PNC Infra, HDFC Bank, HUL, ICICI Bank, OFSS, Relaxo, SRF, United Radico, Firstsource Solutions, V- M&M, NTPC, PI Industries, Sun Breweries, Escorts, Suven Pharma, Mart, Ramkrishna Forgings, Pharma, Titan, , Zee Entertainment, NRB Bearing, Poly Medicure UPL, L&T, IGL, Source: DART

February 01, 2021

Budget Impact Budget Impact Sector Why? (Gainer/Losers/Neutral) Government exuded confidence on doubling farmer’s income and in tandem with the same has sought to levy Agriculture Infrastructure and Development Cess on select imported commodities. The Cess collected will be used Agrochemicals Gainer for the improvement of agriculture infrastructure and other development activities. Government has also enhanced the Agriculture credit target to 1.65tn for FY21-22 with higher focus on ensuring increased credit flows to animal husbandry, dairy, and fisheries. Basic custom duty reduced and AIDC AlcoBev Neutral introduced. Net zero impact. Increased allocation towards agriculture, rural, and infrastructure, together with targeted 10% increase in agriculture credit for farmers and support of MSMEs will provide some support to Auto and Auto Aniciliary Gainers 2Ws, CVs and tractor demand. We prefer PVs,and CVs over 2Ws as channel inventory is low and witnessing strong recovery with pick- up in economic activities Rise in contribution towards capital expenditure a key positive for banking sector's growth prospects. Setting up of a bad bank to absorb stressed assets will help clean up the Banks Gainer banking system, though details on ownership structure and execution remains key. PSB privatization will be an important step in making the sector more resilient. Strong reiteration of infrastructure/capex push Capital Goods & Engineering Gainer is positive; Capex allocations maintained most areas, such as railways, defence. Cement & Building Materials Neutral Nothing specific in demand revival Custom duty increased 2.5% to 15% for compressors as part of aiding local sourcing; Consumer Durables Neutral Benefits for mobile parts and wires in the form of higher import duty Consumer Staples Increased investment in Agriculture, Fisheries, Consumer sector Gainers Animal Husbandry to grow spending power Palm crude oil duty increased from 15% to FMCG Neutral 17.5% Gold and Silver import duty reduced from Jewellery Gainers 12.5% to 10% Paints Gainers One Cr new budget houses development Promotes gas infrastructure which will increase Energy Gainers gas consumption.

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Budget Impact Sector Why? (Gainer/Losers/Neutral) 137% increase in health budget to Rs223bn vs 94bn YoY. Atmanirbhar swasth Bharat yojana to be launched with a total outlay of Rs64bn over 6 years. Healthcare infra spending will lead to Healthcare Positive diagnosis and treatment reaching out to interiors where accessibility is a challenge. Hospitals, diagnostic chains and medical devices/surgical manufacturers to get a boost Hotels Neutral No announcements. Higher budgetary allocation and reiteration of Infra and Construction Positive infrastructure push Tax benefit revoked for ULIPs, Increased FDI Insurance Losers limit to benefit unlisted players more thereby increasing competition intensity. Nothing material announced, except small sops IT Services Neutral for startups Media Neutral No announcements. Aims for universal water supply and household Pipes tap connections, budget allocation increased Gainer 4.5x to Rs 500bn. A new framework for consumers and Discoms Power & Utilities is +ve for sector; asset monetization pipeline Gainer can help power cos Increase in custom duty on cotton. No material Retail Neutral impact. Levy of custom duty on mobile phone parts to Telecom Neutral increase customers total cost of ownership.

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Budget at a Glance 2020-2021 2020-2021 2021-2022 2019-2020 Change Change Rs Cr Budget Revised Budget Actuals (%) (III/I) (%) (V/III) Estimates Estimates Estimates I II III IV V VI 1. Revenue Receipts 1684059 2020926 1555153 (7.7) 1788424 15.0 2. Tax Revenue (Net to Centre) 1356902 1635909 1344501 (0.9) 1545396 14.9 3. Non-Tax Revenue 327157 385017 210652 (35.6) 243028 15.4 4. Capital Receipts 1002271 1021304 1895152 89.1 1694812 (10.6) 5. Recovery of Loans 18316 14967 14497 (20.9) 13000 (10.3) 6. Other Receipts 50304 210000 32000 (36.4) 175000 446.9 7. Borrowings and Other 933651 796337 1848655 1506812 98.0 (18.5) Liabilities 8. Total Receipts (1+4) 2686330 3042230 3450305 28.4 3483236 1.0 9. Total Expenditure (10+13) 2686330 3042230 3450305 28.4 3483236 1.0 10. On Revenue Account of 2350604 2630145 3011142 2929000 28.1 (2.7) which 11. Interest Payments 612070 708203 692900 13.2 809701 16.9 12. Grants in Aid for creation 185641 206500 230376 219112 24.1 (4.9) of capital Assets 13. On Capital Account 335726 412085 439163 30.8 554236 26.2 14. Revenue Deficit (10-1) 666545 609219 1455989 118.4 1140576 (21.7) (3.3) (2.7) (7.5) (5.1) 15. Effective Revenue Deficit 480904 402719 1225613 921464

(14-12) (2.4) (1.8) (6.3) (4.1) 16. Fiscal Deficit 933651 796337 1848655 1506812

[9-(1+5+6)] (4.6) (3.5) (9.5) (6.8) 17. Primary Deficit (16-11) 321581 88134 1155755 697111 (1.6) (0.4) (5.9) (3.1) Source: DART Notes: (i) GDP for BE 2020-2021 has been projected at Rs 22287379 crore assuming 14.4 % growth over the estimated GDP of Rs 19481975 crore for 2020-2021 (RE). (ii) Individual items in this document may not sum up to the totals due to rounding off. (iii) Figures in parenthesis are as a percentage of GDP

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Receipts 2020-2021 2020-2021 2021-2022 2019-2020 Rs Cr Budget Revised Budget Actuals Estimates Estimates Estimates REVENUE RECEIPTS

1. Tax Revenue Gross Tax Revenue 2010059.33 2423020.00 1900279.83 2217059.27 Corporation Tax 556875.55 681000.00 446000.00 547000.00 Taxes on Income 492653.71 638000.00 459000.00 561000.00 Wealth Tax 19.81 ...... Customs 109282.54 138000.00 112000.00 136000.00 Union Excise Duties 240614.52 267000.00 361000.00 335000.00 Service Tax 6029.11 1020.00 1400.00 1000.00 Goods and Services Tax (GST)# 598748.90 690500.00 515100.00 630000.00 Taxes of Union Territories Less - NCCD transferred to the National Calamity 5835.19 7500.00 5779.83 7059.27 Contigency Fund/National Disaster Response Fund 2480.00 2930.00 5820.00 6100.00 Less - States’ share 650677.05 784180.87 549959.19 665562.74 Centre's Net Tax Revenue 1356902.28 1635909.13 1344500.64 1545396.53 2. Non-Tax Revenue Interest receipts 12348.98 11042.04 14004.66 11541.17 Dividends and Profits 186132.54 155395.47 96543.54 103538.42 Other Non Tax Revenue 126913.44 216277.23 98023.70 125417.67 Receipts of Union Territories 1761.81 2302.56 2080.63 2530.64 Total Non Tax Revenue 327156.77 385017.30 210652.53 243027.90 I. Total Revenue Receipts 1684059.05 2020926.43 1555153.17 1788424.43 3. Capital Receipts A. Non-debt Receipts 1. Recoveries of loans and advances 18316.15 14966.67 14497.00 13000.00 2. Miscellaneous Capital Receipts 50304.33 210000.00 32000.00 175000.00 Total B. Debt Receipts 68620.48 224966.67 46497.00 188000.00 1. Market Loans (Net) 473967.88 540869.62 1056788.18 917707.72 2. Market Loans for Repayments (including POLIF) 236032.12 239130.38 231211.82 287792.28 3. Market Loans for Buyback 0.00 30000.00 0.00 0.00 4. Market Loans for Switching 164821.53 270000.00 160000.00 180000.00 5. Less Payments for Switching (164803.30) (270000.00) (160000.00) (180000.00) 6. Market Loans (Gross) (1+2) * 710000.00 780000.00 1288000.00 1205500.00 7. Short Term/T-Bill Borrowings 150103.04 25000.00 225000.00 50000.00 8. External Loan (Net) 8682.32 4621.65 54522.23 1514.23 9. Securities issued against Small Savings (Net) 240000.00 240000.00 480573.89 391927.01 10. State Provident Fund (Net) 11635.33 18000.00 18000.00 20000.00 11. Other Receipts (Net)^ 44273.85 50848.54 39128.84 54280.18 12. Total Debt Receipts 933651.00 796337.00 1848655.00 1506812.00 II. Net Capital Receipts 997300.53 1074306.48 1912510.24 1623428.35 4. Draw-Down of Cash Balance 4970.35 (53002.81) (17358.14) 71382.86 Total Receipts (I+II) 2681359.58 3095232.91 3467663.41 3411852.78 * This excludes a borrowing of Rs 1,10,208 crore passed on to States as Loans on back to back basis in lieu of GST Compensation Cesses. # Includes GST Compensation Cess. ^ includes receipts from reserve funds, deposits and advances, etc.

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Budget Impact

Budget Sector Budget Key Takeaway Key Gainer/ Losers Impact Government exuded confidence on doubling farmer’s income and in tandem with the same has sought to levy Agriculture Infrastructure and Development Cess on select imported commodities. The Cess collected will be used for the improvement of Gainers: Dhanuka Agritech, PI Industries Agrochemicals Positive agriculture infrastructure and other development activities. Government has also and UPL enhanced the Agriculture credit target to 1.65tn for FY21-22 with higher focus on ensuring increased credit flows to animal husbandry, dairy, and fisheries. Basic Customs Duty on imported AlcoBev reduced from 150% to 50% and a levy of 100% AlcoBev None Neutral for AIDC introduced keeping the overall duty unchanged Increased allocation towards agriculture, rural, and infrastructure, together with targeted Maruti, Escorts, M&M, , Automobiles Positive 10% increase in agriculture credit for farmers and support of MSMEs will provide some Jamna Auto, JBM Auto, Ramkrishna support to 2Ws, CVs and tractor demand. Forgings Rise in contribution towards capital expenditure a key positive for banking sector's growth Improved capex prospects positive for prospects. Setting up of a bad bank to absorb stressed assets will help clean up the banking large Banks including SBI, ICICI, Axis, system, though details on ownership structure and execution remains key. PSB HDFC, especially as borrowers are privatization will be another step in making the sector more resilient. consolidating their banking Banks Positive relationships. Corporate banks, mainly PSBs will be beneficiaries of the bad bank set-up. Smaller PSBs like BoM/UCO with high CASA and low NNPA could be most likely candidates for privatization. Strong reiteration of infrastructure/capex push is positive; Capex allocations maintained Capital Goods Positive L&T, KEC In areas such as railways, defence Cement and Building Higher budgetary allocation to the infrastructure sector, especially, capital expenditure Neutral ACC and Birla Corp Material (up 26.2% to Rs5.5 tn) for roads, railways, urban Infrastructure, and metro. Positive - Increased investment in Agriculture development, Fisheries, anumal Gainer - HUL, , ITC, Nestle, Consumer Neutral husbandary; One Cr new budget houses development; Gold and Silver import duty ; Asian Paints, Berger; Titan; reduced from 12.5% to 10%; Negative - Palm crude oil duty increased from 15% to 17.5% Loser - HUL, GCPL Benefits for mobile parts and wires in the form of higher import duty;Custom duty Gainer: Dixon, Polycab, KEI, Consumer Durables Neutral increase in AC/Fridge compressors and LED drivers marginally negative Loser : , Blue star Neutral Promote gas infrastructure by laying pipelines, City Gas Distribution rights awarded and , Gujarat Gas, GAIL, Energy setting up of independent transport system operator to manage common carrier pipeline and Petronet LNG network.

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Budget Sector Budget Key Takeaway Key Gainer/ Losers Impact Apollo, Narayana Hrudalaya, Fortis, Healthcare Positive Higher allocation to healthcare spending and infrastructure from Rs94bn to Rs223bn YoY Max, Poly Medicure, Metropolis, Dr Lal Pathlabs, Thyrocare Hotels Neutral No announcements Higher budgetary allocation to the infrastructure sector, especially, capital expenditure Infra and Construction Positive HG Infra, PNC Infra, and PSP Projects. (up 26.2% to Rs5.5 tn) for roads, railways, urban Infrastructure, and metro. Rationalisation of taxation on ULIPs for policies with premiums above Rs. 250,000 may lead to lower preference of ULIPs among HNI customer base as tax benefit was one of key reasons for investment and impact APE growth since ULIP's constitute a large portion of IPRU to be impacted most given that its Insurance Negative the savings portfolio for life insurers. ULIP mix is high and customer base is Although the move to increase FDI limit to 74% from 49% may seem positive, it will have affluent followed by SBILIFE and MAXF. a neutral impact on large players who are already well capitalised but could help unlisted players who could strengthen their balance sheets. Tax holiday and capital gain exemption on investment in start-ups extended by one more IT Services Neutral Infoedge year till FY22. Media Neutral No announcements Pipes Neutral Water for all to propel demand for pipes and fittings. Astral PolyTechnik, Supreme Industries. Power & Utilities Positive Asset monetization pipeline can help power cos through InviTs PGCIL, NTPC Increase in custom duty on cotton to 10% from 0% is marginally negative. May lead to Retail Neutral marginal increase in costs of RM, if any No announcements. Increase in BCD on Cellular mobile parts (viz. Camera, PCB) etc of Telecom Neutral 2.5%. Increase the total costs of ownership for custimers. Source: DART

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Agrochemicals Overall Impact: Positive Key Proposal Budget Impact . Crop Insurance Scheme (Pradhan Mantri Fasal Bima Yojana) – Government has allocated Rs 160.0 bn towards the Pradhan Mantri Fasal Bima Yojana for FY21-22. . Interest Subsidy for Short Term Credit to Farmers: Under the scheme, interest subvention is provided to NABARD, Regional Rural Banks, Cooperative Banks, Public Sector Banks and scheduled Private Sector Banks for providing Short Term Credit to farmers at subsidized rate of interest. The Government . The government exuded confidence on doubling has budgeted a total spend of Rs 19.4bn farmer’s income and in tandem with the same has towards this scheme. sought to levy Agriculture Infrastructure and Development Cess on select imported commodities. . Pradhan Mantri Kisan Samman Nidhi (PM- The Cess collected will be used for the improvement Kisan): With a view to provide income support of agriculture infrastructure and other development to all farmer families across the country, to activities. Also, to provide adequate credit to the enable them to take care of expenses related farmers the agricultural credit target of Rs 16.5 lakh to agriculture and allied activities as well as crore has been targeted. The centre has disbursed a domestic needs, the Central Government has sum of Rs 628.0bn for wheat MSP in 2019-20 against implemented PM-Kisan. The Scheme aims to Rs 338.7bn in 2013-14, similarly for paddy, pulses provide a payment of Rs. 6000/year in three and cotton the amount has MSP amount being paid quarterly instalments of.Rs.2000 to the farmer out has increased multi-folds. We continue to remain families. Budget for FY21-22 is set at Rs positive on agricultural reforms, MSP hikes and low 650.0bn towards this scheme. per capita consumption (poised to increase with . Distribution of Pulses to State / Union higher farm incomes) of crop protection chemicals in Territories for Welfare Schemes: This scheme agriculture to drive agricultural production in India. is aimed towards disposing the huge stock of pulses procured under Price Support Scheme (PSS) during Kharif marketing season 2017-18 and Rabi Marketing season 2018-19 by offering a subsidy of Rs. 15/per kg over the issue price to State/UTs for utilization under various welfare schemes like Mid-Day Meal, Public Distribution System, ICDS etc. Budget for FY21-22 is set at Rs3.0bn towards this scheme.

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Overall Impact: Positive Key Proposal Budget Impact . Agriculture Credit Enhancement – Agriculture credit target has been enhanced to Rs 16.5 tn for FY22 with higher focus on ensuring increased credit flows to animal husbandry, dairy, and fisheries. . Agriculture Infrastructure and Development Cess on Import of certain items: An Agriculture Infrastructure and Development Cess (AIDC) has been proposed on import of specified goods. To ensure that imposition of cess does not lead to additional burden in most of these items on the consumer, the BCD rates has been lowered. This cess shall be used to finance the improvement of agriculture infrastructure and other development expenditure. . Fertilizer Subsidy: The difference between the concession rate (normative cost of production) and net market realization by the urea units is given as subsidy to urea manufacturing units. The budgetary allocation for fertilizer subsidy has been revised from Rs 713.09bn to Rs 1339.47bn in RE 2020-21 from BE 2020-21. Expenditure on account of fertilizer subsidy estimated at Rs 795.30 bn in BE 2021-22. . Imposition of Custom duty on Cotton: Budget 21-22 has introduced levy of custom duty of 5% on Cotton imports with additional Agriculture Infrastructure and development Cess at the rate of 5% which will help in creating a level playing field for farmers, MSME’s and other domestic manufacturers.

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Auto and Auto Ancillary Overall Impact: Positive Key Proposal Budget Impact . The government has increased allocation for . Increased Rural spend could help demand for agriculture & farmer welfare (+6%) along tractors, 2Ws and entry level cars, Positive for M&M, with 10% increase in agriculture credit target. Escorts, MSIL and 2Ws OEMs. . A new scheme will be launched with allocation . Positive for OEMs like Ashok Leyland, of Rs 180bn to support public bus transport and JBM Auto services. . Will aid demand for tippers and construction trucks . 16% increase in allocation for road and segment, slightly positive for Ashok Leyland, Escorts highway construction. and Tata Motors. . Increased custom duty on Specified auto parts . This will encourage the local manufacturing of these like ignition wiring sets, safety glass, parts of components. signal equipment from 7.5-10% to 15%. . Voluntary vehicle scrappage, Fitness test to be . A successful implementation of the scrappage plan required for 15 years old CV and 20 years old would be depend on the incentive structure, Positive PVs, The policy details for the same will be for CV players like Ashok Leyland and Tata Motors announced separately in coming days. . Reduced Customs duty from 10-12.5% to 7.5% . To some extent this will help to reduce the input cost on semis, flat, and long products of non-alloy, for Auto OEMs. Positive for the Auto sector as a alloy, and stainless steels. whole. . Increased custom duty on carbon black from . Carbon black contributes ~12% of RM cost for tyre. 5% to 7.5%. slightly negative for tyre manufacturers . Duties on parts of lithium ion battery & battery packs (other lithium ion cell) raised to 2.5% . This will encourage the local manufacturing of from nil duty currently. Duty on lithium ion cell lithium ion batteries in medium term long term increased to 5% from 0% which is used in Hybrid and EVs vehicles.

AlcoBev Overall Impact: Neutral Key Proposal Budget Impact . BCD on imported AlcoBev reduced from 150% . No impact to 50% and a levy of 100% for AIDC introduced keeping the overall duty unchanged

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Banks Overall Impact: Positive Key Proposal Budget Impact . Stressed Asset Resolution: An ARC/AMC . Positive for corporate banks, mainly PSBs as this may would be set up to consolidate stressed assets quicken the resolution process of stressed accounts, of banks and dispose them to AIF and other many of which are fully provided and help clean up potential investors bank's books. However, execution will remain key in terms of ownership structure, presence of professional management and time bound sale of assets. . Divestment in PSBs- propose to privatize two . Unconsolidated/unmerged PSBs including BoI, BoM, more PSBs other than IDBI. The required CBoI, UCO, IOB could be the most probable legislative amendments to be introduced the candidates for privatization. This may also have same day. linkages with proposal of corporates getting a banking licence. HR/union related issue could be a key constraint for any prospective buyer. These banks however already trade at a higher valuation multiple to other consolidated PSBs. . Improved scope for Small ticket stress . Postive for all banks, mainly mid-sized banks (DCB, resolution: 1) Special NCLT framework for CUBK) with higher exposure to the MSME sector. Will MSMEs to be introduced. improve borrower credit discipline. 2) Minimum loan size eligible for debt recovery under SARFAESI reduced from the existing level of Rs5 mn to Rs2 mn. . Amendments made to DICGC (Deposits . Will lower risk of run on deposits in case of trouble in Insurance and Credit guarantee scheme) : If a a bank and improve retail depositor confidence bank is temporarily unable to fulfil its obligations, the depositors of such a bank can get easy and time-bound access to their deposits to the extent of the deposit insurance cover (Rs0.5mn). . PSB Recapitalisation: Rs200 bn allocated for . The govt currently has Rs145 bn of residual recap of PSBs for FY22. unallocated capital for PSB recap approved by the parliament for FY21. Together, Rs345bn should be suffice to take care of minimum capital requirements of PSBs, especially as losses have come off with decline in incremental corporate stress and many PSBs are also raising equity directly from the market

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Chemicals Overall Impact: Positive Key Proposal Budget Impact Custom Duty Change . Certain chemicals like Bis-Phenol A, Epichlorohydrin, Chemicals Earlier Now Polycarbonates, Denatured Ethyl Alcohol and Carbon Ethanol for use in manufacture of Black saw an increase in basic customs duty. Naptha, 2.50% 5.00% excisable goods Caprolactum and Nylon Chips saw a decrease in customs duty. , SRF, Aarti Industries, Naphtha 4.00% 2.50% Atul Ltd are beneficiaries of the same. The Bis-phenol A Nil 7.50% implementation of PLI schemes in 13 sectors will Epichlorohydrin 2.50% 7.50% indirectly help Key starting material (KSM) Caprolactam 7.50% 5.00% manufacturers in the chemicals sector. Polycarbonates 5.00% 7.50% Nylon chips 7.50% 5.00% Carbon Black 5.00% 7.50%

Capital Goods and Engineering Overall Impact: Positive Key Proposal Budget Impact . NIP expanded from 6835 projects to 7400; . Positive for infra players like L&T, KEC Investments increased from Rs103trn to Rs111 trn . Annual Capex outlay increased by 25% to . Positive for infra players like L&T, KEC Rs5.5trn from Rs4.4trn . A new DFI set up to fund infrastructure with a . Positive for infra players like L&T, KEC size of Rs5trn in five years . Rail capex outlay maintained at last year levels . Positive for infra players like L&T, KEC

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Cement and Building Materials Overall Impact: (Positive/Negative/Neutral) Key Proposal Budget Impact . Rise of 26.2% (30.8% up in FY21RE) in capital expenditure to Rs5.5 tn (15.9% of total expenditure); of which, 47.0% will be spent on - Roads (up 17.6% which is 19.5% of total capex), - Railways (down 1.2% which is 19.3% of total capex), - Urban Development (up 150% which is 4.6% of total capex), - Metro (up 193% which is 3.4% of total capex), - Water (up 133% which is 0.1% of total capex). . Over and above Rs5.54 tn capex, centre will provide more than Rs2 tn to states and autonomous bodies for capex. . Increase in budgetary allocation to roads and highways by 16.0% to Rs1.18 tn (Rs1.08 tn capex, up 17.6% from FY21RE). . Neutral - Cement price hike and continuation of . Allocation to NHAI increased by 16.9% to demand recovery are key monitorables. Rs574 bn. . Award of 8,500 kms by Mar'22 and complete an additional 11,000 kms of national highway corridors

1. 3,500 kms of NH in TN (Rs1.03 tn) 2. 1,100 kms of NH in Kerala (Rs650 bn) 3. 675 kms of NH in WB (Rs250 bn) 4. 1,300 kms of NH in Assam (Rs340 bn) . Allocation of Pradhan Mantri Gram Sadak Yojna increased by 9.45% to Rs150 bn. . Allocation of Pradhan Mantri Awas Yojna decreased by 32.1% to Rs275 bn. . Allocation of Pradhan Mantri Krishi Sinchai Yojna increased by 45.7% to Rs115.9 bn.

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Cement and Building Materials Overall Impact: Neutral Key Proposal Budget Impact . Allocation of Jal Jeevan Mission increased by 4.5x to Rs 500bn. It aims at universal water supply in all 4,378 Urban Local Bodies with 2.86 crores household tap connections, as well as liquid waste management in 500 AMRUT cities. It will be implemented over 5 years, with an outlay of Rs2.87 tn. . NIP Pipeline expanded to 7,400 projects from 6,835 projects. NIP funding will be done by government and the financial sector. . Allocation to North East road sector . Neutral - Cement price hike and continuation of development scheme increased by 70.2% to demand recovery are key monitorables Rs7 bn. . AMRUT and Smart Cities Mission outlay increased by 39.6% to Rs137.5 bn . Imposition of Agriculture Infrastructure and Development Cess (AIDC) of Rs2.5/ 4 (per litre) on petrol/ diesel will be equally compensated by reduction in excise duty . Extension of additional home loan interest deduction of Rs1.5 lakh by 1 year till FY22 for purchase of affordable housing

Consumer Overall Impact: Neutral Key Proposal Budget Impact . This would boost rural income and help increase . Investments to support agriculture, animal demand for branded consumer products across husbandry, fisheries categories. . Customs duty on crude palm oil increased from . This would increase input prices of soaps and 15% to 17.5% detergents; but can be easily passed on . This would help reduce prices of gold jewellery and . Gold import duty reduced from 12.5% to 10% make it marginally more attractive . This would increase number of ‘pucca’ houses and . One Cr new budget houses to be developed intern give boost to paint sector

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Consumer Durables Overall Impact: Neutral Key Proposal Budget Impact . Increased customs duty on compressors of . This should increase costs for AC manufacturing refrigerators and air conditioners from 12.5% companies, such as Voltas and Blue Star by 75bps. to 15% However, this is part of the push to aiding local sourcing . Increased customs duty for inputs for . This is slightly negative for LED players as drivers are manufacturing LED driver or Metal Core PCB imported by them for LED lighting and lamps from 5% to 10% . Decreased duty on copper scrap from 5% to . This is positive for domestic wire players like Havells, 2.5% Polycab, KEI etc . Increased customs duty on copper, PVC, . This is positive for domestic wire players like Havells, rubber and othe insulated wires and cables Polycab, KEI etc from 7.5% to 10% . Increased customs duty on PCB Assembly of . Positive for Domestic player like Dixon mobile phones and parts for manufacturing mobile phones from Nil to 2.5%

Energy Overall Impact: (Positive/Negative/Neutral) Key Proposal Budget Impact . Add 100 more districts in next 3 years to the . Increase availability of clean and eco-friendly fuel to City Gas Distribution network. different locations. Will benefit gas importers and gas trasmission companies, as consumption of gas . A gas pipeline project will be taken up in Union will increase. And finally positive for end user CGD Territory of Jammu & Kashmir. companies. . An independent Gas Transport System . Independent Transport system operator will manage Operator will be set up for facilitation and a transparent digital system for booking pipeline coordination of booking of common carrier capacity to ease access to transport infrastructure, capacity in all-natural gas pipelines on a non- deepen local markets which will help increase share discriminatory open access basis. of natural gas to a target of 15% by 2030.

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Healthcare Overall Impact: (Positive/Negative/Neutral) Key Proposal Budget Impact . To set up viability Gap funding window for . Neutral to Positive setting up hospitals in the PPP mode under Ayushman Bharat . To expand Jan Aushadhi Kendra Scheme to all . Positive districts offering 2000 medicines and 300 surgicals by 2024. Have provided Rs69bn that includes Rs6.4bn for PMJAY . No. of medicines offered by Jan Aushadhi . Neutral to Negative for domestic pharma companies scheme will be increased from 900 to 2000 by Mar'24. . Number of surgicals offered under Jan . No. of surgicals will be increased from 154 to 300 by Aushadhi would be increased from 154 to 300 Mar'24. Positive for Poly Medicure as it has one of by Mar'24 the largest suppliies for surgical items. . Campaign against TB - Pneumoccal Vaccine. . Positive for Abbott, , Merck Efforts to eradicate TB by 2025 . PM Atmanirbhar Swasth Bharat Yojna with . Positive for Hospitals and diagnostics companies like total outlay of Rs64bn over the next 6 years Apollo, Fortis, Max, Metropolis, Dr Lal and Thyrocare . Rs35bn allocated for COVID-19 vaccines in . FY22

IT Services Overall Impact: Neutral Key Proposal Budget Impact . Tax holiday for start-ups extended by one . Neutral more year till FY22. . Capital gain exemption on investment in start- . Neutral ups extended by one more year till FY22

February 01, 2021 18

Infra and Construction Overall Impact: Positive Key Proposal Budget Impact . Rise of 26.2% (30.8% up in FY21RE) in capital expenditure to Rs5.5 tn (15.9% of total expenditure); of which, 47.0% will be spent on - Roads (up 17.6% which is 19.5% of total capex), - Railways (down 1.2% which is 19.3% of total capex), - Urban Development (up 149.9% which is 4.6% of total capex), - Metro (up 193% which is 3.4% of total capex), - Water (up 133% which is 0.1% of total capex). . Out of Rs5.54 tn capex, Rs440 bn have been kept for projects which show good progress on capex . Over and above Rs5.54 tn capex, centre will provide more than Rs2 tn to states and autonomous bodies for capex. . NHAI to start with sponsoring 1 InvIT having 5 operational road projects worth Rs50 bn, . Positive - New project awarding and execution are which will be followed by more monetization the parameters to watch. of NHAI operational toll projects . Debt Financing of InVITs and REITs by Foreign Portfolio Investors will be enabled by making suitable amendments in the relevant legislations. This will further ease access of finance to InVITS and REITs thus augmenting funds for infrastructure and real estate sectors. . Allocation to NHAI increased by 16.9% to Rs574 bn. . Award of 8,500 kms by Mar'22 and complete an additional 11,000 kms of national highway corridors 1. 3,500 kms of NH in TN (Rs1.03 tn) 2. 1,100 kms of NH in Kerala (Rs650 bn) 3. 675 kms of NH in WB (Rs250 bn) 4. 1,300 kms of NH in Assam (Rs340 bn) . Allocation of Pradhan Mantri Gram Sadak Yojna increased by 9.45% to Rs150 bn. . Allocation of Pradhan Mantri Awas Yojna decreased by 32.1% to Rs275 bn.

February 01, 2021 19

Infra and Construction Overall Impact: Positive Key Proposal Budget Impact . Allocation of Jal Jeevan Mission increased by 355% to Rs500.1 bn. It aims at universal water supply in all 4,378 Urban Local Bodies with 2.86 crores household tap connections, as well as liquid waste management in 500 AMRUT cities. It will be implemented over 5 years, with an outlay of Rs2.87 tn. . NIP Pipeline expanded to 7,400 projects from 6,835 projects. NIP funding will be done by government and the financial sector:- 1. Introduction of Bill to set up a Development . Positive - New project awarding and execution are Financial Institution (DFI) and provide a sum of the parameters to watch. Rs200 bn. Debt financing of InvITs and REITs by FPIs 2. National Monetization Pipeline of potential brownfield infrastructure assets will be launched. 3. Sharp Increase in Capital Budget . Allocation to North East road sector development scheme increased by 70.2% to Rs7 bn. . AMRUT and Smart Cities Mission outlay increased by 39.6% to Rs137.5 bn

February 01, 2021 20

Insurance Overall Impact: Negative Key Proposal Budget Impact . Tax rationalisation for ULIPs . IPRU to be impacted most followed by SBILIFE and Under the new proposal, those ULIP's with an MAXF. annual premium in excess of Rs 250,000 and o Tax benefit was one of key reasons for issued on or after 1 Feb 2021 will no longer be investment into ULIPs by HNIs exempt under section 10(10D). The death o Avg ULIP ticket size (9MFY21) is highest for IPRU benefit, however, will continue to be tax free. at 140K-180K followed by SBILIFE at 80K-90K Such ULIP policies will also be taxed capital while for HDFCLIFE was 55-65K. gains tax in the same way as mutual funds. o ULIP mix (APE basis) 9MFY21: IPRU: 48.2%, HDFCLIFE: 23%, SBILIFE: 62%. MAXF ULIP mix was 32% (H1FY21). o As of FY20, Retail first year premium above Rs. 125,000 was concentrated as 63.5% IPRU, 45.1% HDFCLIFE, 45.4% SBILIFE and 41% MAXF Per our estimate, the probable impact on APE could be 20-25% IPRU, 10-15% SBILIFE, 10-15% SBILIFE and 5-10% on HDFCLIFE. . Increased FDI limit to 74% from 49% . Neutral to negative for listed players. Proposal to amend the Insurance Act, 1938 to o The top 4 life insurers are adequately capitalised increase the permissible FDI limit in Insurance with solvency margins in excess of 200% vs companies to 74%. Under the proposed regulatory required 150%. Both IPRU and structure, the majority of the directors and key HDFCLIFE have raised debt in 9MFY21 to help managerial personnel will be Indian residents drive growth in capital intensive products - and at least 50% of the directors to be annuities, non-par and protection. independent. o The increased FDI limit will allow smaller players (unlisted) to raise more capital and thereby enable them to increase distribution and underwrite higher amount of capital intensive products. o This will lead to higher competitive intensity in the sector and we therefore see it as a negative for the listed peers (HDFCLIFE, IPRU, MAXF and SBILIFE) which have a cumulative market share (ex-LIC) of ~55%. . Disinvestment in LIC through IPO . Neutral to negative for private players (IPRU, The target receipts from disinvestment are Rs HDFCLIFE, SBILIFE and MAXF) 1,750bn.The bill to modify the LIC Act is to be o We believe that post IPO, LIC will look to ramp up tabled in the current parliamentary session. its market share through product diversification and ramping up distribution which could be negative for private players. o LIC's market share as of 9MFY21 (NBP basis) was ~60%.

February 01, 2021 21

Pipes Overall Impact: (Positive/Negative/Neutral) Key Proposal Budget Impact . The Jal Jeevan Mission (Urban) which aims at . Demand for piping will increase, as water security universal water supply in all 4,378 Urban Local and providing safe and adequate drinking water are Bodies with 2.86 crores household tap priorities for the government. Positive for organized connections, as well as liquid waste pipe manufacturers. management in 500 AMRUT cities will be launched. It will be implemented over 5 years, with an outlay of Rs. 2,87,000 crores.

Power Utilities Overall Impact: (Positive/Negative/Neutral) Key Proposal Budget Impact . Asset monetisation pipeline as a mode to raise . Positive for PGCIL and NTPC as they can monetise funds assets to use for further capex . Rs3.1trn to Discoms for infra creation and . This should help leakage and improve the finances smart meters over 5 years of distribution companies . Framework for consumer to choose from . Overall positive for the sector more than one distributor

Retail Overall Impact: (Positive/Negative/Neutral) Key Proposal Budget Impact . Increase in custom duty on cotton to 10% from . No material impact 0% is marginally negative. May lead to marginal increase in costs of RM, if any

Telecom Overall Impact: (Positive/Negative/Neutral) Key Proposal Budget Impact . Increase in BCD on Cellular mobile parts (viz. . No impact Camera, PCB) etc of 2.5%. Increase the total costs of ownership for custimers.

February 01, 2021 22

Annual Estimates

Agrochemicals Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A UPL Ltd 357,560 377,340 416,048 442,284 67,730 74,336 85,706 91,110 17,760 23,039 33,814 37,759 29.1 30.1 44.2 49.4 PI Industries 33,665 45,081 54,185 63,066 7,178 10,053 11,921 13,875 4,566 6,626 7,671 9,122 33.1 43.7 50.6 60.2 Rallis 22,518 23,250 25,486 28,131 2,594 3,021 3,296 3,662 1,760 2,103 2,248 2,458 9.0 10.8 11.6 12.6 Sharda Cropchem 20,030 22,356 24,591 27,050 2,818 4,052 4,402 4,910 1,647 1,998 2,231 2,620 18.3 22.1 24.7 29.1 Dhanuka Agritech 11,201 13,404 14,883 16,529 1,735 2,401 2,670 2,968 1,415 1,858 2,041 2,240 29.7 39.0 42.9 47.1 Source: DART

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A UPL Ltd 408 534 621 16 18.3 17.7 12.1 10.8 13.1 11.5 15.2 15.1 9.9 9.0 7.8 7.3 1.1 1.1 1.0 0.9 PI Industries 303 1,999 2,406 20 60.4 45.7 39.5 33.2 18.6 17.0 13.9 14.6 21.3 22.3 27.3 23.3 9.0 6.7 5.6 4.8 Rallis 53 272 216 (21) 30.0 25.1 23.5 21.5 13.1 14.2 13.9 13.9 20.1 17.2 14.5 12.9 2.3 2.3 2.1 1.9 Sharda Cropchem 25 281 436 55 15.4 12.7 11.4 9.7 12.3 13.5 13.7 14.5 8.8 6.1 7.1 6.1 1.3 1.1 1.0 0.9 Dhanuka Agritech 35 736 1035 41 24.8 18.9 17.2 15.6 21.0 23.8 21.8 20.2 9.4 7.1 5.7 5.7 3.1 2.6 2.4 2.1 Source: DART

February 01, 2021 23

AlcoBev Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A United Spirits 88,425 79,131 97,044 106,533 13,731 9,451 15,746 18,529 7,012 4,392 9,308 11,611 9.7 6.0 12.8 16.0 United Brew 65,046 43,187 70,488 75,838 8,754 4,107 12,644 13,814 4,281 1,255 7,199 8,138 16.2 4.7 27.2 30.8 Radico Khaitan 24,270 23,393 27,996 30,290 3,717 4,123 5,002 5,461 2,274 2,599 3,174 3,580 16.4 19.5 23.8 26.8 Source: DART

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A United Spirits 420 573 630 10 59.3 94.7 44.7 35.8 20.2 11.0 20.2 20.5 31.4 45.2 26.9 22.4 4.7 5.3 4.3 3.9 United Brew 344 1,283 1,476 15 79.3 270.4 47.1 41.7 12.8 3.7 20.4 20.5 38.9 82.5 26.8 24.3 5.2 7.9 4.8 4.5 Radico Khaitan 65 513 625 22 31.2 26.3 21.6 19.1 16.1 16.3 16.9 16.2 19.4 17.1 13.7 12.2 2.8 2.9 2.4 2.3 Source: DART

February 01, 2021 24

Auto and Auto Ancillary Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Ashok Leyland* 174,675 129,946 192,714 277,281 11,737 4,624 15,143 27,224 2,394 (3,511) 4,937 14,377 0.8 (1.2) 1.7 4.9 299,187 272,302 329,218 356,185 50,962 47,367 58,855 64,955 51,147 45,155 54,310 59,789 176.2 156.5 187.7 206.6 91,536 86,937 114,591 128,014 21,804 19,006 28,319 31,832 18,274 14,017 22,934 27,157 66.9 51.3 84.0 99.5 Escorts 57,610 61,500 69,701 76,861 6,758 9,136 9,368 10,664 4,948 6,908 7,278 8,430 53.6 68.3 72.0 83.4 Hero Motocorp* 288,361 282,246 335,137 361,630 39,580 36,438 47,137 51,692 29,557 27,025 35,110 38,624 148.0 135.3 175.8 193.4 Mahindra Mahindra* 448,655 421,411 502,480 570,886 63,506 64,476 74,367 85,633 7,397 27,954 45,038 53,795 20.6 28.3 36.2 43.3 Maruti Suzuki 756,106 697,050 852,251 940,135 73,026 60,146 101,755 120,757 56,506 50,910 80,658 94,242 187.1 168.5 267.0 312.0 SML ISUZU 11,542 6,541 10,352 13,755 119 (174) 437 844 (211) (485) (14) 315 (14.5) (33.5) (1.0) 21.8 TVS Motor 164,233 160,325 192,983 218,108 13,459 12,831 17,371 20,536 6,246 4,994 8,386 10,355 13.1 10.5 17.7 21.8 Amara Raja 68,395 63,995 74,372 81,902 10,988 10,367 12,123 13,514 6,611 5,767 7,054 8,015 38.7 33.8 41.3 46.9 * 163,270 158,729 177,729 197,016 19,155 19,541 21,982 24,820 4,764 2,608 4,635 6,636 8.3 4.6 7.3 10.5 Asahi India 26,432 22,693 28,367 32,722 4,347 3,411 4,973 5,868 1,537 661 1,958 2,841 6.3 2.7 8.1 11.7 Balkrishna Ind 47,825 54,616 61,077 67,512 12,494 16,549 18,262 20,321 9,450 10,866 12,019 13,494 48.9 56.2 62.2 69.8 * 80,558 64,124 80,495 96,603 11,147 7,729 15,537 20,061 4,287 1,735 7,283 10,339 9.2 3.7 15.6 22.2 CEAT 67,788 72,253 79,484 86,377 7,238 9,491 8,926 9,924 2,587 3,716 3,095 3,893 64.0 91.9 76.5 96.2 Exide Ind 98,567 97,195 111,789 122,480 13,650 13,206 15,516 17,382 8,254 7,347 9,011 10,127 9.7 8.6 10.6 11.9 Jamna Auto* 11,290 8,105 11,834 15,627 1,141 654 1,460 2,124 479 221 779 1,236 1.2 0.6 2.0 3.1 JBM Auto* 19,467 18,115 22,566 26,497 2,302 1,757 2,448 2,954 692 411 871 1,197 14.6 8.7 18.4 25.3 Lumax Auto Tech 11,409 9,768 12,204 14,310 910 686 1,045 1,243 498 277 511 623 7.3 4.1 7.5 9.1 Lumax Industries 16,016 13,449 16,716 19,148 1,578 847 1,588 1,857 719 47 612 816 76.9 5.0 65.5 87.3 Minda Corp 28,131 19,080 22,855 25,504 2,499 1,571 2,340 2,752 (1,998) 457 1,034 1,309 4.1 1.9 4.3 5.5 Ramkrishna Forg 11,118 11,455 16,162 19,960 2,037 1,959 3,135 3,992 96 (32) 754 1,382 2.9 (1.0) 23.6 43.3 Sandhar tech 19,434 16,318 19,108 22,114 1,964 1,683 2,095 2,445 570 370 674 919 9.5 6.2 11.2 15.3 Sterling Tools 3,642 2,957 3,801 4,885 614 469 655 884 290 156 303 479 8.1 4.3 8.4 13.3 Subros* 19,928 16,624 20,637 22,878 1,890 1,413 2,064 2,356 557 288 780 970 8.5 4.4 12.0 14.9 Suprajit Eng 15,628 14,082 16,280 18,679 2,187 1,719 2,315 2,830 1,314 819 1,241 1,606 9.4 5.9 8.9 11.5 Varroc Eng. 111,219 104,429 122,785 139,880 8,208 5,744 10,559 12,869 2 (3,408) 1,506 3,269 0.0 (25.2) 11.2 24.2 NRB Bearings 7,760 6,551 8,358 9,266 858 827 1,364 1,595 322 291 708 893 3.3 3.0 7.3 9.2 *Target Achieved. Will Review the rating and TP post Q3FY21 results February 01, 2021 25

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Ashok Leyland* 357 122 98 (19.7) 149.1 NA 72.3 24.8 3.1 -5.0 6.8 19.6 32.0 NA 25.6 14.1 2.0 2.7 1.9 1.3 Bajaj Auto 1,195 4,130 3,852 (6.7) 23.4 26.4 22.0 20.0 24.5 19.7 19.8 19.6 20.1 20.4 15.9 13.9 4.0 4.4 3.6 3.4 Eicher Motors 779 2,855 2,387 (16.4) 42.7 55.6 34.0 28.7 19.3 13.4 19.3 19.6 32.1 36.3 23.7 20.3 8.5 9.0 6.8 6.1 Escorts 155 1,264 1,334 5.6 23.6 18.5 17.6 15.2 15.2 15.8 12.9 13.0 22.5 15.3 14.3 12.1 2.7 2.5 2.2 2.0 Hero Motocorp* 669 3,349 3,288 (1.8) 22.6 24.7 19.0 17.3 21.9 17.8 20.7 20.7 15.6 16.6 12.5 11.1 2.3 2.4 2.0 1.8 Mahindra Mahindra* 941 793 715 (9.9) 38.4 28.0 21.9 18.3 7.4 9.7 11.3 12.3 14.7 14.5 12.5 10.7 2.1 2.2 1.9 1.6 Maruti Suzuki 2,234 7,395 8,425 13.9 39.5 43.9 27.7 23.7 11.9 10.1 14.7 15.5 25.7 30.3 17.4 14.1 3.0 3.2 2.6 2.4 SML ISUZU 8 538 392 (27.1) NA NA NA 24.7 -5.3 -13.5 -0.4 9.1 73.9 NA 19.7 9.7 0.7 1.2 0.8 0.6 TVS Motor 274 577 506 (12.3) 43.9 54.9 32.7 26.5 17.9 13.2 19.6 21.1 21.6 22.5 16.6 13.9 1.7 1.7 1.4 1.3 Amara Raja 159 932 845 (9.3) 24.1 27.6 22.6 19.9 18.9 14.9 16.2 16.2 12.1 12.8 10.8 9.5 2.3 2.5 2.1 1.9 Apollo Tyres* 123 215 167 (22.2) 25.8 47.1 29.4 20.5 4.8 2.5 4.1 5.7 9.8 9.1 8.2 7.0 0.8 0.8 0.7 0.6 Asahi India 68 280 292 4.3 44.3 103.0 34.8 24.0 12.0 4.8 13.5 17.3 19.6 24.4 16.4 13.3 2.6 3.0 2.4 2.1 Balkrishna Ind 316 1,637 1,536 (6.1) 33.5 29.1 26.3 23.4 19.5 19.9 18.9 18.4 25.7 19.1 16.9 14.8 6.6 5.8 5.2 4.7 Bharat Forge* 285 612 555 (9.4) 66.5 164.3 39.2 27.6 8.0 3.3 13.2 16.7 13.0 18.6 9.2 7.0 3.5 4.4 3.5 3.0 CEAT 59 1,459 1,444 (1.0) 22.8 15.9 19.1 15.2 8.1 12.2 9.3 10.8 11.0 8.3 9.0 7.8 0.9 0.8 0.7 0.7 Exide Ind 165 195 222 14.1 20.0 22.5 18.4 16.3 13.6 11.5 13.1 13.5 12.0 12.1 10.0 8.5 1.7 1.7 1.5 1.4 Jamna Auto* 26 64 62 (3.5) 53.4 115.9 32.8 20.7 9.3 4.2 13.9 19.6 23.8 40.6 18.0 12.3 2.3 3.2 2.2 1.6 JBM Auto* 18 383 380 (0.7) 26.2 44.1 20.8 15.1 10.2 5.7 11.4 14.0 10.5 14.0 10.1 8.2 0.9 1.0 0.8 0.7 Lumax Auto Tech 9 128 137 7.2 17.5 31.4 17.0 14.0 10.7 6.1 10.8 12.1 7.0 9.5 6.1 5.0 0.8 0.9 0.7 0.6 Lumax Industries 12 1,315 1,572 19.5 17.1 260.9 20.1 15.1 17.8 5.3 15.7 17.3 9.6 17.5 9.1 7.5 0.8 0.9 0.7 0.6 Minda Corp 21 91 77 (15.4) 22.0 47.4 20.9 16.5 9.6 4.1 8.5 9.7 8.4 13.3 8.9 7.6 0.7 1.1 0.9 0.8 Ramkrishna Forg 17 516 650 26.0 175.0 NA 21.9 11.9 0.9 -0.3 4.7 6.9 17.7 18.2 11.4 8.9 1.5 1.5 1.0 0.8 Sandhar tech 15 241 275 13.9 25.5 39.2 21.5 15.8 9.0 5.4 8.5 10.3 8.7 9.9 7.6 6.0 0.7 0.9 0.8 0.7 Sterling Tools 7 200 240 19.9 24.8 46.2 23.8 15.0 9.8 5.0 9.3 13.4 12.7 15.6 10.9 7.8 2.0 2.4 1.9 1.5 Subros* 22 336 297 (11.6) 39.4 76.2 28.1 22.6 7.8 3.8 9.6 11.0 11.7 15.9 10.5 8.7 1.1 1.3 1.1 1.0 Suprajit Eng 29 210 245 16.6 22.4 35.9 23.7 18.3 16.1 9.2 12.8 14.8 14.5 18.0 13.1 10.5 1.9 2.1 1.8 1.6 Varroc Eng. 58 429 484 12.9 NA NA 38.4 17.7 0.0 -12.0 5.6 11.4 10.9 15.2 7.8 6.1 0.5 0.6 0.5 0.4 *Target Achieved. Will Review the rating and TP post Q3FY21 results

February 01, 2021 26

BFSI NII (Rs mn) PPOP (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Axis Bank 232,153 303,741 344,651 377,444 234,382 262,733 296,170 324,734 16,273 71,351 155,381 194,017 5.8 23.3 50.8 63.4 254,495 300,473 329,441 361,885 196,914 211,791 233,754 262,697 5,462 15,801 53,622 100,067 1.2 3.4 11.6 21.6 130,009 250,899 284,350 308,447 93,598 187,622 205,778 222,231 22,358 15,344 76,519 96,498 (21.7) 9.3 46.5 58.6 16,659 18,914 20,780 23,903 12,324 13,905 14,928 17,554 3,672 3,943 6,883 8,953 5.0 5.3 9.3 12.1 DCB Bank 12,283 13,611 14,623 17,058 7,501 9,375 9,313 10,707 3,349 3,270 4,840 6,556 10.8 10.5 15.6 21.1 44,330 56,586 61,875 69,900 32,048 39,511 39,955 45,857 15,429 15,782 17,669 22,854 7.7 7.9 8.9 11.5 HDFC Bank 556,237 644,110 763,272 905,668 487,495 533,107 626,014 762,241 262,573 287,755 370,591 468,378 47.9 52.5 67.6 85.4 ICICI Bank 313,752 381,700 423,738 476,147 281,012 325,941 348,761 391,935 79,308 173,091 191,043 236,042 12.3 25.1 27.7 34.2 75,907 158,337 175,934 188,047 64,980 114,860 119,003 129,314 7,534 13,460 35,865 54,888 12.4 11.9 31.8 48.6 Indusind Bank 117,584 136,147 143,052 161,942 107,742 117,265 107,754 116,765 44,194 31,272 51,100 61,799 63.7 41.3 67.6 81.7 Kotak Bank 137,489 158,121 174,527 197,974 105,620 121,802 135,204 159,094 64,883 73,819 87,807 106,158 33.9 37.3 44.4 53.7 SBI 916,352 1,084,689 1,214,779 1,349,069 619,170 678,820 752,058 812,266 142,666 128,395 283,876 405,524 16.0 14.4 31.8 45.4

Mcap CMP TP Upside P/E (x) ROE (%) ROA (x) P/ABV (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Axis Bank 2170 714.5 840 17.6 124 31 14 11 2.1 7.6 14.3 15.6 0.2 0.7 1.5 1.6 2.7 2.3 2.0 1.7 Bank of Baroda 341 74 70 (5.4) 63 22 6 3 0.9 2.2 7.2 12.3 0.1 0.1 0.4 0.8 0.8 0.8 0.7 0.6 Canara Bank 234 143 135 (5.6) (7) 15 3 2 (5.9) 3.3 13.1 14.4 (0.3) 0.2 0.7 0.8 1.1 1.0 0.7 0.5 City Union Bank 127 173 200 15.7 35 32 19 14 7.2 7.2 11.7 13.6 0.8 0.8 1.3 1.4 2.8 2.8 2.4 2.0 DCB Bank 34 109 160 47.1 10 10 7 5 10.2 9.2 12.3 14.7 0.9 0.8 1.2 1.4 1.2 1.1 0.9 0.8 Federal Bank 154 77 90 16.8 10 10 9 7 11.1 10.3 10.5 12.3 0.9 0.8 0.9 1.0 1.2 1.1 1.0 0.9 HDFC Bank 8,140 1,479 1,750 18.3 31 28 22 17 16.4 15.8 17.7 19.1 1.9 1.8 2.0 2.1 4.8 4.3 3.7 3.1 ICICI Bank 4,170 609 640 5.1 50 24 22 18 7.2 11.3 12.2 13.4 0.8 1.5 1.5 1.7 3.8 3.1 2.8 2.4 Indian Bank 107 95 130 37.4 8 8 3 2 3.6 4.7 10.0 14.2 0.3 0.3 0.6 0.8 0.4 0.7 0.5 0.4 Indusind Bank 735 975 940 (3.5) 15 24 14 12 14.6 8.5 12.2 13.2 1.5 1.0 1.4 1.5 2.2 2.0 1.8 1.6 Kotak Bank 3,570 1,810 1,900 5.0 53 48 41 34 14.1 13.1 12.9 13.6 1.9 2.0 2.2 2.3 7.8 6.2 5.4 4.6 SBI 2,780 313 280 (10.6) 20 22 10 7 11.8 6.7 11.1 14.1 0.7 0.4 0.6 0.8 1.8 1.6 1.3 1.1

Source: DART February 01, 2021 27

Capital Goods Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Bluestar 53,602 40,101 49,151 57,014 2,828 2,286 3,490 4,048 1,432 836 2,050 2,318 14.9 8.7 21.4 24.1 CG Consumer Elect. 45,203 46,332 53,281 61,273 5,991 6,857 7,726 9,191 4,964 5,142 5,744 6,856 7.9 8.2 9.2 10.9 44,001 52,554 99,827 131,379 2,231 2,523 4,592 5,781 1,205 1,359 2,770 3,485 104.1 117.4 239.4 301.2 Havells 94,403 97,865 117,438 136,315 10,287 14,093 16,911 20,038 7,356 9,800 11,981 14,399 11.8 15.7 19.1 23.0 V-Guard 24,820 24,032 28,833 33,362 2,533 2,007 2,912 3,370 1,852 1,411 2,138 2,523 4.3 3.3 5.0 5.9 Polycab 88,300 93,635 107,699 123,464 11,350 12,284 14,343 16,708 7,656 8,514 10,140 11,982 51.4 57.2 68.1 80.4 Amber Enterprises 39,628 30,295 41,528 56,944 3,093 2,134 3,702 4,844 1,641 678 1,714 2,425 48.7 20.1 50.9 72.0 Orient Electric 20,618 19,302 23,163 26,329 1,764 1,850 2,211 2,770 786 966 1,156 1,522 3.7 4.6 5.4 7.2 Voltas 76,581 65,172 78,621 96,397 6,867 5,214 7,469 8,676 5,211 5,114 7,298 8,666 15.7 15.5 22.0 26.2 Source: DART

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Bluestar 75 780 730 (6) 52.3 89.7 36.6 32.3 20.4 10.7 20.8 19.1 27.1 24.4 15.9 13.3 1.4 1.9 1.5 1.3 CG Consumer. 259 414 500 21 52.6 50.8 45.5 38.1 38.7 32.7 30.5 29.0 43.8 37.8 33.2 27.3 5.8 5.6 4.9 4.3 Dixon Tech. 178 15,172 11,200 (26) 145.7 129.2 63.4 50.4 22.3 20.2 30.0 28.4 78.6 69.6 38.3 30.4 4.0 3.3 1.8 1.3 Havells 664 1061 1300 23 90.3 67.8 55.4 46.1 17.3 21.6 23.2 23.6 63.5 46.6 38.6 32.2 7.0 6.8 5.7 4.9 V-Guard 98 229 185 (19) 53.0 69.7 46.0 39.0 19.6 13.4 18.1 18.6 38.4 48.0 33.1 28.6 4.0 4.1 3.4 2.9 Polycab 187 1252 1350 8 24.3 21.9 18.4 15.5 22.9 20.4 20.6 20.7 16.3 14.6 12.0 10.0 2.2 2.0 1.7 1.5 Amber Enter 88 2621 2500 (5) 50.2 130.3 51.5 36.4 15.5 5.0 10.3 13.0 27.3 40.7 23.6 17.9 2.1 2.9 2.1 1.6 Orient Electric 58 271 290 7 73.2 59.5 49.8 37.8 23.6 25.2 26.3 29.5 33.1 31.3 26.5 21.0 2.8 3.0 2.5 2.2 Voltas 310 938 930 (1) 59.5 60.6 42.5 35.8 12.4 12.1 16.5 17.5 45.0 59.2 41.4 35.7 4.0 4.8 3.9 3.2 Source: DART

February 01, 2021 28

Cement and Building Material Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A ACC 156,567 139,288 159,801 181,409 20,959 25,229 29,237 33,196 12,594 13,820 16,687 18,562 67 74 89 99 Ambuja 116,679 111,959 124,738 132,956 21,489 26,060 28,486 30,548 15,285 17,210 17,814 19,554 8 9 9 10 Birla Corp 69,157 65,944 76,176 90,812 13,360 13,512 15,658 18,672 4,867 5,374 5,828 7,491 63 70 76 97 Dalmia Bharat 96,740 96,439 112,660 127,306 21,060 24,635 26,849 29,299 2,240 5,971 6,922 8,484 12 32 37 45 Heidelberg 21,696 20,331 23,685 25,432 5,278 5,078 6,055 6,572 2,681 2,457 3,182 3,298 12 11 14 15 JKLC 40,435 41,013 43,663 45,948 6,724 6,732 7,261 7,649 2,636 2,523 2,780 3,081 22 21 24 26 JKCE 54,638 60,384 69,461 77,119 11,815 13,952 15,750 17,364 5,785 6,651 7,268 8,843 75 86 94 114 119,040 122,775 133,923 147,436 36,745 39,285 42,526 46,530 15,755 21,421 22,191 23,589 437 594 615 654 The Ramco Cement 53,684 54,631 63,850 70,507 11,366 15,150 17,167 18,275 6,011 8,048 9,262 9,651 26 34 39 41 Ultratech Cement 424,211 438,169 478,704 517,290 92,472 112,193 119,966 129,704 36,458 53,598 59,453 67,112 126 186 206 233 Source: DART

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A ACC 317 1,685 2,007 19 25 23 19 17 12 11 13 13 13 11 9 8 2.0 2.3 2.0 1.7 Ambuja 518 261 261 0 34 30 29 26 7 8 9 9 16 15 13 11 4.4 4.6 4.2 3.9 Birla Corp 59 763 1,135 49 12 11 10 8 10 11 11 12 7 7 6 5 0.9 0.9 0.8 0.6 Dalmia Bharat 228 1,219 1,415 16 105 38 33 27 2 6 6 7 13 11 9 8 2.4 2.4 2.0 1.8 Heidelberg 51 224 236 6 19 21 16 15 22 18 21 19 9 10 8 8 2.3 2.5 2.1 2.0 JKLC 39 335 393 17 15 16 14 13 16 14 13 13 7 7 7 7 1.0 1.0 0.9 0.9 JKCE 151 2,165 2,240 3 29 25 23 19 25 19 18 18 15 12 11 10 2.8 2.5 2.2 2.0 Shree Cement 855 24,544 26,947 10 56 41 38 35 14 16 14 13 22 20 17 16 7.2 7.0 6.4 5.8 The Ramco Cement 199 836 953 14 33 25 21 20 13 15 15 14 20 15 13 12 3.7 3.6 3.1 2.8 Source: DART

February 01, 2021 29

Consumer Durables Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Kalpataru 79,040 83,028 95,453 105,058 8,600 9,133 10,500 11,556 4,390 4,697 5,372 6,268 28.8 30.8 35.2 41.1 KEC Inter 119,654 131,575 148,409 165,365 12,344 13,503 15,231 16,971 5,655 6,882 8,076 9,140 22.0 26.8 31.4 35.6 L&T 1,454,524 1,367,252 1,668,048 1,851,533 163,290 132,623 195,162 216,629 95,490 67,556 112,280 128,639 68.0 48.1 79.9 91.6 KEI Industries 48,843 41,992 50,669 58,163 4,960 4,499 5,095 5,812 2,551 2,419 2,737 3,033 28.5 27.0 30.6 33.9 Concor 64,738 62,878 76,510 87,718 16,183 10,716 14,098 16,692 10,232 7,748 11,242 13,842 16.8 12.7 18.5 22.7 NTPC 977,004 1,048,875 1,144,486 1,299,060 270,927 282,147 303,289 344,251 121,735 115,496 124,823 143,050 12.3 11.7 12.6 14.5 Power Grid 361,855 394,422 437,809 459,699 314,017 339,567 377,264 395,783 108,112 114,075 146,993 151,824 20.7 21.8 28.1 29.0 Source: DART

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Kalpataru 48 322 340 6 10.3 9.9 9.1 7.8 17.2 16.8 16.2 16.4 6.7 6.0 5.4 4.7 0.6 0.6 0.5 0.5 KEC Inter 95 368 440 20 16.7 11.7 9.9 8.8 21.6 22.4 22.1 21.1 9.3 7.4 6.4 5.7 0.8 0.6 0.5 0.5 L&T 2035 1450 1680 16 21.3 30.1 18.1 15.8 14.8 9.8 15.0 15.5 7.7 8.6 6.6 6.0 1.4 1.4 1.4 1.4 KEI Industries 43 473 580 23 16.6 17.5 15.4 13.9 22.3 14.9 14.7 14.2 8.7 9.1 8.1 7.1 0.9 1.0 0.8 0.7 Concor 277 454 400 (12) 34.2 45.2 31.1 25.3 10.0 7.4 9.9 11.2 20.3 30.0 22.7 18.8 5.4 5.6 4.6 4.0 NTPC 910 92 140 52 7.5 8.9 7.3 6.4 11.3 9.0 10.4 11.2 9.2 9.1 8.3 7.4 0.9 0.9 0.8 0.7 Source: DART

February 01, 2021 30

Consumer Staples Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Asian Paints 202,112 207,635 254,157 297,891 41,619 47,125 56,829 65,951 27,052 30,538 37,696 44,340 28.4 32.0 39.5 46.4 Bajaj Consumer 8,442 8,671 9,183 9,736 2,106 2,406 2,534 2,643 1,906 2,214 2,320 2,415 12.9 15.0 15.7 16.4 Bata 30,535 19,237 27,893 30,683 8,297 3,054 6,882 7,908 3,269 197 2,587 3,214 25.4 1.5 20.1 25.0 63,658 62,639 78,761 88,479 10,610 10,095 13,572 16,648 6,561 6,071 8,785 12,224 6.8 6.3 9.1 12.6 Britannia 115,996 134,087 148,921 166,101 18,432 24,963 25,622 28,485 13,762 19,479 19,817 21,854 57.9 80.9 82.3 90.8 Colgate Palmolive 45,251 47,819 51,521 55,295 12,017 14,442 14,876 16,427 8,165 9,809 10,049 11,130 30.0 36.1 36.9 40.9 Dabur India 87,036 95,569 101,119 111,005 17,924 20,095 20,906 23,099 15,449 16,612 17,337 19,041 8.2 9.4 9.8 10.8 26,549 29,262 32,391 34,658 6,905 8,853 9,799 10,139 3,030 4,258 4,576 4,975 6.7 9.4 10.1 11.0 GCPL 99,108 108,250 117,656 128,190 21,438 23,633 25,272 27,069 15,776 17,512 18,694 20,043 15.4 17.1 18.3 19.6 HUL 387,850 453,133 496,724 546,332 96,000 112,112 130,473 149,200 69,350 79,859 93,872 108,202 31.1 34.3 40.0 46.4 ITC 456,197 429,514 476,901 509,219 179,043 155,813 183,079 197,389 152,682 135,565 156,027 167,465 12.4 11.0 12.7 13.6 Jubilant Foodworks 38,858 32,174 45,726 51,144 8,771 7,772 11,661 13,129 3,203 2,153 4,804 5,644 20.9 16.3 36.4 42.8 Kansai Nerolac 52,800 47,520 56,031 61,202 8,045 8,107 10,135 11,673 5,210 4,735 6,116 7,189 9.4 8.7 11.2 13.2 Marico 73,150 78,407 85,121 91,988 14,690 16,519 17,328 18,007 10,210 11,880 12,702 13,416 8.1 9.2 9.8 10.4 Nestle 123,689 132,748 148,726 163,867 28,643 29,350 34,239 37,858 19,696 20,556 24,405 27,013 204.3 213.2 253.2 280.2 29,454 25,065 32,922 37,299 5,326 4,331 6,537 7,668 3,432 2,678 4,322 5,165 307.7 240.1 387.5 463.1 72,945 67,810 86,649 96,029 15,760 14,796 19,720 21,619 11,772 10,233 13,827 15,443 23.2 20.1 27.2 30.4 Relaxo Footwear 24,105 22,681 28,257 32,300 4,090 4,165 5,119 5,801 2,263 2,292 2,954 3,372 9.1 9.2 11.9 13.6 Titan 200,096 189,034 281,169 316,038 24,177 18,564 34,350 40,192 15,176 10,962 22,370 26,413 17.1 12.3 25.2 29.8 Source: DART

February 01, 2021 31

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Asian Paints 2,364 2,465 2,774 13 86.8 77.0 62.4 53.1 27.7 22.7 27.1 30.2 56.1 49.2 40.6 34.7 11.7 11.4 9.3 7.9 Bajaj Consumer 31 210 197 (6) 16.3 14.0 13.4 12.8 32.8 28.6 24.5 21.7 12.0 9.5 8.4 7.4 3.7 3.6 3.4 3.2 Bata 193 1,500 1,365 (9) 59.0 978.4 74.5 60.0 17.9 1.0 12.8 14.3 22.1 58.1 25.3 21.5 6.3 10.0 6.9 6.3 Berger Paints 682 702 655 (7) 102.6 112.1 77.5 55.7 25.7 21.5 27.1 31.9 64.5 66.7 49.3 39.9 10.7 10.9 8.7 7.7 Britannia 844 3,503 3,812 9 60.5 43.3 42.6 38.6 31.8 39.5 33.1 30.6 46.0 33.7 32.5 28.9 7.3 6.3 5.7 5.1 Colgate Palmolive 428 1,574 1,760 12 52.4 43.6 42.6 38.5 53.7 60.0 62.3 69.9 35.3 29.3 28.4 25.7 9.5 9.0 8.3 7.7 Dabur India 906 515 540 5 62.8 54.7 52.4 47.7 25.2 23.6 21.3 20.6 48.5 43.3 41.3 36.9 10.4 9.5 9.0 8.2 Emami 220 485 575 19 72.6 51.6 48.0 44.2 10.4 20.2 21.6 21.1 31.6 24.4 21.7 20.7 8.3 7.5 6.8 6.4 GCPL 762 745 751 1 48.3 43.5 40.7 38.0 20.8 21.8 22.3 22.5 36.6 32.8 30.4 28.2 7.7 7.0 6.5 5.9 HUL 4,845 2,239 2,535 13 71.9 65.2 56.0 48.2 88.4 94.7 98.4 101.5 49.6 42.3 36.2 31.5 12.5 10.7 9.8 8.9 ITC 2,621 215 187 (13) 17.3 19.5 16.9 15.8 25.0 22.6 27.5 28.9 12.8 14.4 12.0 10.6 5.7 6.1 5.5 5.1 Jubilant Food 337 2,555 2,566 0 122.4 156.6 70.2 59.7 25.6 17.3 32.2 29.4 39.3 43.5 28.4 24.7 8.7 10.5 7.4 6.6 Kansai Nerolac 313 580 555 (4) 61.4 66.8 51.6 43.9 14.5 12.1 14.4 15.5 38.5 37.2 29.7 25.5 5.9 6.6 5.6 5.1 Marico 542 420 440 5 52.0 45.6 42.7 40.4 33.9 37.0 33.5 31.4 36.6 32.2 30.4 29.0 7.4 6.9 6.4 5.9 Nestle 1,647 17,080 17,667 3 83.6 80.1 67.5 61.0 101.9 80.9 74.1 66.4 56.8 55.3 47.1 42.2 13.3 12.4 11.1 10.0 Page Industries 306 27,394 24,082 (12) 89.0 114.1 70.7 59.2 43.0 30.1 40.1 38.8 57.5 70.2 46.6 39.5 10.4 12.2 9.3 8.2 Pidilite Industries 864 1,701 1,672 (2) 73.4 84.4 62.5 56.0 26.4 20.1 22.7 20.2 53.8 57.0 42.4 38.1 11.8 12.7 10.0 9.0 Relaxo Footwear 206 830 747 (10) 91.0 89.8 69.7 61.0 19.0 16.8 18.6 18.1 50.4 49.2 39.8 34.8 8.5 9.1 7.3 6.4 Titan 1,281 1,443 1,428 (1) 84.4 116.9 57.3 48.5 23.3 14.8 25.4 24.6 53.8 70.0 37.8 32.1 6.4 6.8 4.6 4.1 Source: DART

February 01, 2021 32

Chemicals Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Aarti Industries 46,207 47,112 59,916 69,075 9,773 10,122 14,026 15,858 5,474 5,355 8,094 9,298 31.6 30.9 46.7 53.6 Atul Industries 40,098 37,657 45,619 53,234 9,020 9,489 11,051 12,856 6,665 6,712 7,388 8,344 224.5 226.1 248.9 281.1 Navin Fluorine 10,616 11,805 13,372 19,101 2,635 3,113 3,704 5,310 1,523 2,567 2,696 4,010 30.8 51.9 54.5 81.1 SRF 72,094 78,872 94,675 107,771 14,549 19,481 22,145 24,335 9,159 10,833 12,012 13,323 159.3 182.9 202.8 224.9 Vinati Organics 10,289 9,119 12,074 14,872 4,139 3,407 4,428 5,251 3,338 2,589 3,201 3,852 32.5 25.2 31.1 37.5 Sudarshan Chemicals 16,809 17,629 19,862 22,379 2,463 2,759 3,215 3,757 1,317 1,315 1,558 1,953 19.0 19.0 22.5 28.2 Source: DART

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Aarti Industries 204 1,170 1,547 32 37.0 37.9 25.0 21.8 19.5 16.0 20.2 19.9 22.2 21.4 15.5 13.7 4.4 4.3 3.4 3.0 Atul Industries 194 6,532 7,028 8 29.1 28.9 26.2 23.2 22.7 19.4 18.1 17.3 20.3 19.3 16.6 14.3 4.8 5.1 4.2 3.6 Navin Fluorine 116 2,346 3,115 33 76.2 45.2 43.1 28.9 12.3 17.1 15.9 20.5 45.2 38.5 32.6 22.4 10.9 9.8 8.7 6.1 SRF 316 5,490 6,008 9 34.5 30.0 27.1 24.4 20.2 20.1 18.9 18.0 21.6 16.1 14.3 13.0 4.4 4.0 3.3 2.9 Vinati Organics 127 1,233 1,011 (18) 38.0 48.9 39.6 32.9 28.6 19.2 21.2 22.4 30.4 36.9 28.4 23.9 12.3 13.9 10.5 8.5 Sudarshan Chemicals 35 504 621 23 26.5 26.5 22.4 17.9 22.5 20.4 21.1 22.6 16.2 14.4 12.4 10.6 2.1 2.0 1.8 1.6 Source: DART

February 01, 2021 33

Energy Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A 38,768 29,266 38,046 40,732 11,531 8,341 11,223 12,219 8,274 6,035 8,295 8,829 8.4 6.1 8.4 8.9 Gulf Oil Lubricant 16,435 15,120 17,691 19,460 2,865 2,503 3,157 3,638 2,025 1,653 2,190 2,522 40.4 33.2 43.7 50.6 Indraprastha Gas 64,853 50,479 63,631 69,974 15,196 12,095 16,172 19,358 11,365 8,953 12,227 14,092 16.2 12.8 17.5 20.1 29,721 23,845 29,590 33,575 10,528 9,575 11,706 13,566 7,935 6,670 8,511 9,545 80.3 67.5 86.2 96.6 Gujarat Gas 103,003 86,111 107,415 118,156 16,343 16,741 21,786 29,145 11,933 10,344 14,175 19,374 17.3 15.0 20.6 28.1 Gujarat State Petronet 23,686 20,573 25,182 26,456 15,749 14,154 17,451 18,334 11,087 8,748 11,859 12,643 19.7 15.5 21.0 22.4 Petronet LNG 354,520 300,747 339,844 390,821 39,895 46,715 53,680 60,547 26,976 30,093 35,679 40,444 18.0 20.1 23.8 27.0 GAIL 718,710 624,000 686,400 741,312 83,694 55,645 78,227 89,719 66,206 38,496 53,299 60,402 14.7 8.5 11.8 13.4 Source: DART

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Castrol India 125 127 140 11 15.1 20.7 15.1 14.2 65.3 48.9 76.6 82.4 9.0 12.5 9.3 8.5 3.2 4.3 3.3 3.1 Gulf Oil Lubricant 34 683 750 10 16.9 20.6 15.6 13.5 26.6 24.2 27.1 26.1 13.1 14.5 11.3 9.5 2.1 2.3 1.9 1.8 Indraprastha Gas 374 534 580 9 32.9 41.8 30.6 26.5 24.7 16.3 18.9 18.3 19.2 24.4 18.2 15.1 5.8 7.4 5.9 5.3 Mahanagar Gas 105 1,065 1,200 13 13.3 15.8 12.4 11.0 26.9 19.9 22.0 21.5 7.9 8.7 7.1 5.9 3.5 4.4 3.6 3.1 Gujarat Gas 247 359 430 20 20.7 23.9 17.4 12.8 43.4 27.5 29.1 30.2 13.8 13.4 10.3 7.6 2.4 2.9 2.3 2.1 Gujarat State Petronet 114 203 228 13 10.3 13.1 9.6 9.0 17.8 12.4 14.9 14.1 7.6 8.6 7.0 6.2 4.8 5.6 4.5 4.3 Petronet LNG 361 241 286 19 13.4 12.0 10.1 8.9 25.7 26.2 28.0 28.1 8.0 7.2 6.0 5.0 1.0 1.2 1.1 0.9 Source: DART

February 01, 2021 34

Healthcare Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Ajanta 25,879 27,214 30,983 35,033 6,833 7,972 8,906 10,345 4,677 5,656 6,400 7,524 53 65 73 85.8 Alkem 83,444 92,387 101,906 112,553 14,734 18,791 20,358 23,223 11,271 13,727 14,688 16,929 94 115 123 141.6 Cadila 142,531 152,865 167,452 181,955 27,834 32,113 34,175 37,784 15,402 18,598 20,099 23,156 15 18 20 22.6 Cipla 171,320 191,213 207,350 225,216 32,060 42,516 45,806 51,830 15,465 23,166 26,057 30,376 19 29 32 32.3 Divis Lab 53,944 69,657 81,092 93,685 18,222 27,002 31,323 37,038 13,765 19,256 22,167 26,421 52 73 84 100 Dr Reddys 178,890 190,424 218,482 251,321 45,232 44,591 52,985 61,917 21,733 25,629 30,205 35,953 131 154 182 216.3 IPCA 46,487 55,004 62,762 70,976 9,067 15,018 16,386 17,797 6,036 10,912 11,913 13,011 48 86 94 103 J B Chemicals 17,747 19,404 21,829 24,316 3,776 4,537 5,089 5,968 2,720 3,201 3,526 4,158 35 41 46 54 Laurus 28,317 43,178 50,018 56,670 5,645 13,700 14,950 17,269 2,553 8,544 9,733 11,784 24 16 18 22 Lupin 153,748 150,866 167,262 181,674 23,548 25,933 32,731 37,557 4,827 10,546 14,937 18,318 11 23 33 40.4 Poly medicure ltd 6,872 7,873 9,182 10,645 1,640 2,091 2,383 2,847 959 1,290 1,508 1,835 11 15 17 21 328,375 346,772 378,749 406,055 69,742 88,259 92,382 99,478 39,828 65,595 71,493 77,533 17 27 30 32.3 Suven 8,338 9,810 11,472 13,408 3,710 4,383 5,179 6,100 3,029 3,634 4,293 5,016 24 14 17 20 Syngene 20,119 22,749 26,212 29,883 6,035 6,453 7,864 9,285 3,408 3,497 4,495 5,554 9 9 11 14 Torrent Pharma 79,393 84,192 92,357 101,406 21,704 24,356 26,334 28,975 10,247 11,698 14,284 16,855 61 69 84 100 Source: DART

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Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Ajanta 151 1,746 1,771 1 28.7 21.4 19.7 18.1 19.3 20.1 19.6 19.7 22.4 18.8 16.3 13.6 6.0 5.7 5.0 4.4 Alkem 351 2,937 3290 12 93.0 43.3 30.6 24.9 19.4 20.7 19.2 19.3 21.3 16.4 14.7 12.5 3.7 3.3 3.0 2.7 Cadila 468 457 497 9 33.9 29.8 25.3 21.3 14.8 17.3 17.1 17.8 20.3 17.2 15.7 13.8 3.5 3.3 3.0 2.7 Cipla 650 806 900 12 42.3 26.6 24.4 20.9 10.1 14.6 14.0 14.4 20.7 14.6 13.3 11.2 3.8 3.4 3.1 2.9 Divis Lab 933 3,516 3,515 0 32.3 26.8 24.8 21.5 20.1 26.4 27.1 28.0 47.1 35.0 30.0 25.2 16.1 13.7 11.8 10.2 Dr Reddys 737 4,434 5200 17 27.5 22.5 21.1 18.3 14.7 15.8 16.5 17.0 16.2 17.0 14.0 11.6 4.1 3.9 3.4 2.9 IPCA 239 1,884 2369 26 32.7 27.1 23.9 20.4 17.9 26.7 23.5 21.1 26.3 15.4 13.5 11.9 5.1 4.3 3.8 3.4 J B Chemicals 76 988 1130 14 38.8 21.4 19.6 18.0 18.7 21.2 21.0 22.0 20.4 16.7 14.5 12.0 4.5 4.1 3.7 3.3 Laurus 188 351 426 21 40.3 35.3 28.9 24.5 15.3 38.9 31.3 28.1 24.6 14.3 12.7 10.5 4.5 4.3 3.7 3.3 Lupin 449 991 803 -19 28.1 25.1 22.8 19.3 3.7 8.2 10.9 12.4 19.7 16.8 12.9 10.8 2.9 3.0 2.7 2.5 Poly medicure ltd 46 517 620 20 49.9 21.7 19.0 15.7 23.5 27.4 27.3 28.0 26.9 22.2 19.3 15.8 6.2 5.7 4.9 4.2 Sun Pharma 1,423 593 711 20 63.1 49.6 43.1 36.2 9.2 13.2 12.5 12.3 15.9 14.5 13.3 11.7 3.5 4.1 3.8 3.5 Suven 118 465 462 -1 29.4 33.9 28.7 24.5 42.2 36.9 33.9 31.8 24.4 28.0 23.4 19.4 10.7 12.5 10.7 9.2 Syngene 226 564 640 13 66.2 64.5 50.2 40.6 16.4 15.2 17.2 18.3 38.0 35.1 28.1 23.0 11.6 10.3 8.9 7.8 Torrent Pharma 429 2,538 2863 13 44.4 35.4 30.3 24.9 21.5 22.7 24.1 24.2 21.4 18.7 16.7 14.7 5.2 4.9 4.5 4.1 Source: DART

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Hotel Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Indian Hotels 44,631 19,039 41,784 46,136 9,675 (2,917) 10,256 11,807 3,544 (7,090) 1,961 3,315 2.0 (6.9) 1.6 2.8 Lemon Tree 6,694 2,734 6,312 8,007 2,383 462 1,998 3,226 (69) (1,523) (727) (43) (0.1) (1.9) (0.9) (0.1) Source: DART

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Indian Hotels 145 122 133 9 61.2 (17.5) 73.8 43.6 5.4 (20.9) 5.4 8.5 18.7 (65.2) 18.2 15.4 3.2 7.6 3.5 3.1 Lemon Tree 33 41 37 (11) (474.5) (21.4) (44.8) (763.1) (0.8) (20.4) (11.5) (0.7) 28.3 534.7 38.5 22.7 4.9 11.9 5.2 4.1 Source: DART

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Infra & Constructions Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Ahluwalia Contracts 18,849 17,505 20,352 23,411 1,530 1,562 2,442 2,814 644 742 1,292 1,504 9.6 11.1 19.3 22.5 Dilip Buildcon 89,838 88,472 97,320 105,636 15,720 14,156 15,960 17,430 4,160 2,607 3,838 5,162 30.4 19.1 28.1 37.7 HG Infra 21,961 23,306 28,788 34,896 3,424 3,736 4,384 5,299 1,657 1,811 2,176 2,738 25.4 27.8 33.4 42.0 J Kumar Infra 29,705 23,132 33,047 41,560 4,289 2,851 4,628 5,827 1,836 461 1,684 2,412 24.3 6.1 22.3 31.9 KNR 22,442 27,140 31,909 37,644 4,871 5,321 5,742 6,776 2,018 2,470 2,748 3,403 14.4 17.6 19.5 24.2 NCC 82,188 76,509 86,070 95,826 10,302 9,275 10,476 11,811 2,616 2,529 3,167 3,995 4.3 4.1 5.2 6.6 PSP 14,993 13,064 15,920 17,837 1,910 1,469 2,071 2,320 1,293 944 1,359 1,544 35.9 26.2 37.8 42.9 PNC 48,779 49,377 60,442 71,992 7,643 6,833 8,364 10,021 3,515 3,231 4,482 5,599 13.7 12.6 17.5 21.8 Source: DART

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Ahluwalia Contracts 18.4 274 292 6 28.5 24.8 14.2 12.2 8.4 8.8 13.7 14.0 10.7 10.4 6.5 5.4 1.0 1.1 0.9 0.8 Dilip Buildcon 60.3 441 410 (7) 14.5 23.1 15.7 11.7 12.6 7.0 9.5 11.6 5.7 6.5 5.6 5.1 0.7 0.7 0.6 0.6 HG Infra 15.2 233 410 76 9.2 8.4 7.0 5.5 22.4 19.9 19.7 20.3 5.2 4.7 4.1 3.5 0.7 0.7 0.5 0.4 J Kumar Infra 11.3 150 162 8 6.2 24.6 6.7 4.7 10.5 2.5 8.7 11.3 3.1 4.2 2.8 2.3 0.4 0.5 0.3 0.3 KNR 56.9 405 387 (4) 28.2 23.0 20.7 16.7 13.4 14.3 13.8 14.9 12.1 10.7 9.8 8.1 2.5 2.1 1.8 1.5 NCC 40.2 67 47 (30) 15.6 16.2 12.9 10.2 5.3 4.9 5.7 6.8 5.5 6.1 5.1 4.5 0.5 0.5 0.5 0.4 PSP 15.2 423 558 32 11.8 16.1 11.2 9.9 31.2 19.1 23.0 21.5 7.3 9.1 6.0 4.9 1.0 1.2 1.0 0.9 Source: DART

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IT Services Net Sales (Rs mn) EBIT Margin (%) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Affle India 3,338 4,991 6,361 7,861 746 1,034 1,336 1,706 655 944 1,155 1,465 25.7 37.0 45.3 57.5 Coforge 41,839 46,514 53,941 60,697 5,468 5,956 6,716 7,764 4,441 4,491 5,264 6,169 72.1 75.7 85.3 100.0 Firstsource 40,986 48,412 56,864 62,916 4,437 5,488 6,440 7,178 3,397 4,299 5,197 5,913 4.9 6.2 7.5 8.5 HCL Tech 706,780 755,441 846,153 940,841 138,530 163,188 176,377 195,453 110,620 134,299 138,307 152,314 40.8 49.5 51.7 57.0 907,910 1,006,001 1,136,415 1,265,090 193,740 246,727 270,439 290,364 165,950 194,019 216,560 232,118 39.1 45.6 52.0 55.7 Intellect Design 13,509 14,827 16,740 19,025 59 2,526 2,962 3,855 160 2,116 2,312 2,931 1.3 16.0 17.4 22.1 L&T Infotech 108,786 123,705 144,291 168,041 17,561 23,581 25,917 29,867 15,199 18,755 20,982 24,032 86.4 106.7 119.3 136.7 77,643 79,537 91,421 102,969 8,144 13,685 15,824 16,527 6,309 10,665 12,263 12,891 38.3 64.7 74.4 78.2 88,436 97,607 111,524 126,532 14,190 15,732 17,925 19,829 11,851 12,358 14,441 16,024 63.5 66.2 77.3 85.8 MPS 3,317 4,256 4,842 5,276 636 880 916 1,021 599 664 762 868 32.2 36.7 42.1 48.0 NIIT Limited 8,892 8,740 10,240 12,009 253 713 885 1,295 13,275 1,110 1,376 1,852 93.8 7.8 9.7 13.1 Nucleus Soft 5,208 5,210 6,039 6,950 807 1,149 1,336 1,461 890 1,195 1,358 1,527 30.6 41.2 46.8 52.6 OFSS 48,613 51,170 55,852 62,996 21,223 24,486 25,831 29,310 14,622 17,770 18,715 20,953 170.4 206.6 217.6 243.6 Persistent 35,657 41,684 47,827 54,300 3,269 4,967 5,602 6,286 3,402 4,348 5,018 5,582 44.5 56.9 65.7 73.0 Ramco Systems 5,689 6,284 7,073 8,208 365 1,035 1,111 1,589 102 569 684 977 3.3 18.5 22.3 31.9 TCS 1,569,490 1,638,032 1,889,703 2,115,976 385,800 407,399 471,438 515,499 323,400 318,734 366,735 400,548 86.2 86.2 99.1 109.9 368,677 381,175 424,463 468,402 42,803 53,095 59,572 63,132 40,330 46,002 47,169 49,790 46.2 52.6 53.7 56.6 614,545 618,291 667,669 713,277 105,673 120,212 125,846 128,347 97,161 105,554 106,980 108,415 17.0 19.3 19.5 20.8 Source: DART

February 01, 2021 39

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Affle India 97 3,805 3,500 (8.0) 148.1 102.8 84.0 66.2 43.5 34.3 30.5 28.6 109.7 78.7 60.7 46.1 29.1 19.4 15.3 12.3 Coforge 150 2,428 2,200 (9.4) 33.7 32.1 28.5 24.3 19.9 17.6 18.3 18.9 19.5 17.6 15.1 12.7 3.6 3.2 2.8 2.5 Firstsource 62 89 120 35.0 18.2 14.4 11.9 10.4 12.4 15.0 17.0 18.2 10.8 8.7 7.1 6.2 1.5 1.3 1.1 1.0 HCL Tech 2,492 932 1,140 22.3 22.9 18.8 18.0 16.4 23.9 24.1 22.1 21.7 14.7 11.9 10.7 9.3 3.5 3.3 2.9 2.6 Infosys 4,806 1,153 1,500 30.1 29.5 25.3 22.2 20.7 25.5 28.2 28.9 28.3 23.1 18.3 16.3 14.9 5.3 4.8 4.2 3.8 Intellect Design 46 345 330 (4.3) 258.9 21.6 19.8 15.6 1.5 18.4 16.8 16.5 61.2 13.5 11.0 8.2 3.4 3.1 2.7 2.4 L&T Infotech 699 3,978 3,830 (3.7) 46.0 37.3 33.3 29.1 29.5 31.1 28.5 27.1 32.8 24.3 21.6 18.4 6.4 5.7 4.8 4.2 Mindtree 278 1,686 1,560 (7.5) 44.0 26.1 22.7 21.6 19.5 30.3 28.3 24.8 24.3 15.9 13.3 12.2 3.6 3.5 3.0 2.7 Mphasis 284 1,520 1,720 13.2 23.9 23.0 19.7 17.7 21.4 20.0 20.8 20.3 15.5 13.8 11.9 10.4 3.2 2.9 2.5 2.2 MPS 7 413 570 38.0 12.8 11.2 9.8 8.6 14.3 18.4 20.9 22.4 6.7 5.4 4.7 4.0 2.3 1.8 1.5 1.4 NIIT Limited 27 189 200 5.8 2.0 24.1 19.5 14.5 115.4 8.0 9.1 11.4 21.2 14.2 12.2 8.6 3.0 3.1 2.6 2.2 Nucleus Soft 15 527 650 23.4 17.2 12.8 11.3 10.0 16.6 19.8 19.5 19.0 10.2 6.8 5.3 4.1 2.9 2.9 2.5 2.2 OFSS 280 3,250 4,000 23.1 19.1 15.7 14.9 13.3 25.4 26.9 27.9 30.1 10.5 9.1 8.6 7.5 5.7 5.5 5.0 4.4 Persistent 118 1,543 1,530 (0.8) 34.7 27.1 23.5 21.1 14.4 17.1 17.4 16.9 21.0 15.0 13.1 11.5 3.3 2.8 2.5 2.2 Ramco Systems 20 653 600 (8.1) 196.6 35.2 29.3 20.5 1.7 9.0 9.8 12.5 20.2 12.0 11.2 8.6 3.5 3.2 2.8 2.4 TCS 11,480 3,150 3,300 4.8 36.5 36.6 31.8 28.7 37.3 36.4 37.3 37.1 27.2 25.0 21.5 19.3 7.3 7.0 6.1 5.4 Tech Mahindra 167 948 1,020 7.6 20.5 18.0 17.7 16.7 19.2 20.2 19.0 18.6 13.3 11.0 9.7 9.0 0.5 0.4 0.4 0.4 Wipro 2,210 423 390 (7.8) 24.8 21.9 21.6 20.4 17.3 18.8 18.0 17.8 15.8 13.6 12.7 11.8 3.6 3.6 3.3 3.1 Source: DART

February 01, 2021 40

Insurance Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A HDFC Life Ins 74,070 78,753 95,158 114,190 206,500 261,720 309,940 368,146 19,190 20,435 25,431 30,543 9.5 10.1 12.6 15.1 ICICI Prudential 73,810 57,103 75,808 87,645 230,300 283,440 330,265 385,315 16,050 15,328 18,481 22,023 11.2 10.7 12.9 15.3 MAX Financials 41,490 44,991 51,221 58,847 99,770 120,834 143,869 170,530 8,970 10,987 11,555 12,994 4.7 5.7 6.0 6.8 SBI Life 107,400 111,323 137,416 152,724 276,400 304,115 353,897 403,343 20,100 20,856 25,021 28,552 20.1 20.9 25.0 28.5 Source: DART

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A HDFC Life Ins 1,412 699 764 9 6.8 5.4 4.6 3.8 25.9 25.9 26.7 26.7 18.1 18.9 18.4 18.8 699 764 9 6.8 ICICI Prudential 704 490 556 13 3.1 2.5 2.1 1.8 21.7 26.8 24.4 25.1 15.2 16.7 16.5 16.7 490 556 13 3.1 MAX Financials 243 708 784 11 1.9 2.0 1.7 1.4 21.6 24.4 22.6 22.1 20.3 21.1 19.1 18.5 708 784 11 1.9 SBI Life 875 875 1021 17 3.2 2.9 2.5 2.2 18.7 18.7 18.2 18.7 20.5 18.4 19.2 16.6 875 1021 17 3.2 Source: DART

February 01, 2021 41

Media Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Sun TV 35,415 31,149 37,195 40,464 22,755 20,520 24,495 26,745 13,855 13,596 15,200 16,829 35.2 34.5 38.6 42.7 Zee Ent 81,667 70,804 84,024 92,342 23,121 16,421 21,968 25,451 5,618 7,560 14,557 17,109 18.2 11.1 15.2 17.8 Source: DART

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Sun TV 188 503 569 13 14.3 14.6 13.0 11.8 24.6 22.6 23.2 23.8 7.5 8.0 6.5 5.8 4.8 5.3 4.3 3.8 Zee Ent 211 227 247 9 12.5 20.4 15.0 12.8 19.1 11.1 14.1 15.1 9.3 12.8 9.4 7.7 2.7 3.1 2.6 2.4 Source: DART

Pipes Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Astral Poly Technik 25,779 24,647 27,553 33,923 4,429 4,017 5,157 6,438 2,496 2,176 2,858 3,644 16.5 14.4 18.9 24.1 Supreme Industries 55,115 56,660 61,428 66,631 8,346 8,790 9,626 10,877 4,630 5,955 6,460 7,277 36.4 46.9 50.8 57.3 Finolex Industries 29,860 24,955 30,166 37,464 4,481 3,361 4,207 5,448 3,242 2,318 2,972 3,795 26.1 18.7 23.9 30.6 Source: DART

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Astral Poly Technik 260 1,724 1,790 4 104.3 119.7 91.1 71.5 18.0 13.5 15.4 17.1 47.7 52.5 40.8 32.4 10.1 10.6 9.4 7.7 Supreme Industries 228 1,795 1,880 5 49.3 38.3 35.3 31.3 21.0 24.3 22.8 22.3 26.6 25.2 22.7 19.8 4.1 4.0 3.7 3.4 Finolex Industries 73 590 620 5 22.6 31.6 24.6 19.3 14.5 11.8 14.5 17.2 17.3 22.6 18.1 14.0 2.5 2.9 2.4 2.0 Source: DART

February 01, 2021 42

Retail Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Dmart 246,750 233,225 343,284 417,370 21,221 16,512 29,577 37,316 13,499 10,905 20,601 26,050 20.8 16.8 31.8 40.2 Vmart 16,620 11,129 20,770 24,471 2,137 1,425 2,981 3,633 493 -18 879 1,183 27.2 -1.0 48.4 65.1 Source: DART

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) (Rs Company (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A bn) Dmart 1,718 2,812 2,668 (5) 134.9 167.0 88.4 69.9 12.1 8.9 14.4 16.4 84.4 107.9 60.0 47.4 7.4 7.8 5.3 4.4 Vmart 45 2,469 3,048 23 90.9 -2,534.0 51.0 37.9 11.4 -0.4 17.6 19.8 23.3 34.2 16.3 13.2 2.7 4.0 2.2 1.8 Source: DART

Telecom Net Sales (Rs mn) EBITDA (Rs mn) PAT (Rs mn) EPS (Rs) Company FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Bharti Airtel 875,390 1,022,378 1,124,456 1,258,659 366,181 467,045 562,196 647,070 (321,831) (156,887) 83,559 161,062 (59.1) (28.8) 15.3 29.6 Indus Towes 255,651 257,111 262,069 268,159 125,867 129,786 133,552 136,618 54,376 48,682 52,242 55,381 20.2 18.1 19.4 20.6 Source: DART

Mcap CMP TP Upside P/E (x) ROE (%) EV/EBITDA(x) Mcap/Sales (x) Company (Rs bn) (Rs) (Rs) (%) FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A FY20A FY21E FY22E FY23A Bharti Airtel 3,017 579 663 14 NA NA 37.8 19.6 -43.3 -22.8 12.9 21.0 12.2 9.8 7.8 6.4 3.6 3.1 2.8 2.5 Indus Towes 428 240 268 12 11.9 13.3 12.4 11.7 30.7 29.1 32.7 34.1 6.4 6.3 6.1 5.8 4.1 4.0 3.9 3.8 Source: DART

February 01, 2021 43

February 01, 2021 45

DART RATING MATRIX Total Return Expectation (12 Months)

Buy > 20% Accumulate 10 to 20% Reduce 0 to 10% Sell < 0%

DART Team

Purvag Shah Managing Director [email protected] +9122 4096 9747

Amit Khurana, CFA Head of Equities [email protected] +9122 4096 9745 CONTACT DETAILS Equity Sales Designation E-mail Direct Lines Dinesh Bajaj VP - Equity Sales [email protected] +9122 4096 9709 Kapil Yadav VP - Equity Sales [email protected] +9122 4096 9735 Yomika Agarwal VP - Equity Sales [email protected] +9122 4096 9772 Jubbin Shah VP - Derivatives Sales [email protected] +9122 4096 9779 Ashwani Kandoi AVP - Equity Sales [email protected] +9122 4096 9725 Lekha Nahar AVP - Equity Sales [email protected] +9122 4096 9740 Equity Trading Designation E-mail P. Sridhar SVP and Head of Sales Trading [email protected] +9122 4096 9728 Chandrakant Ware VP - Sales Trading [email protected] +9122 4096 9707 Shirish Thakkar VP - Head Domestic Derivatives Sales Trading [email protected] +9122 4096 9702 Kartik Mehta Asia Head Derivatives [email protected] +9122 4096 9715 Dinesh Mehta Co- Head Asia Derivatives [email protected] +9122 4096 9765 Bhavin Mehta VP - Derivatives Strategist [email protected] +9122 4096 9705

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