Amara Raja Batteries (AMARAJ)
CMP: | 630 Target: | 590 (-6%) Target Period: 12 months REDUCE
July 23, 2019 Aftermarket helps deliver positive surprise… Amara Raja Batteries (ARBL) reported a decent set of Q1FY20 numbers. Revenues were at | 1,815 crore (up 2.0% YoY). Growth was driven by
healthy 2-W, 4-W aftermarket performance and industrial segment although Particulars OEM and telecom segments disappointed. EBITDA rose 26.8% YoY to | 279 crore with margins at 15.4%, down marginally by 5 bps QoQ. Savings in Particular | crore other expenses were negated by a jump in input costs despite softer lead Market Capitalization | 10761 Crore Total Debt (FY19) 46.8 prices. Consequent PAT rose 24.7% YoY to | 141 crore. Cash & Investments (FY19) 72.0 EV (FY19) | 10735.8 Crore
Result Update Result OEM pain to continue; margin profile seen steadying! 52 week H/L (|) 908 / 572 Equity capital 17.1 The incumbent business model of domestic battery manufacturers Face value (|) | 1 (including ARBL) remains largely dependent on aftermarket demand (~70% of automotive mix, with remaining ~30% constituted by OEM demand). A Key Highlights challenging business environment in the OEM space from Q3FY19 onwards has also hurt ARBL’s performance. This segment is expected to remain Revenue growth for Q1FY20 at 2% was higher than expectations subdued for upcoming quarters given the continued suppressed demand despite poor OEM volumes. Healthy sentiments. However, the aftermarket segment would lend topline support demand in the auto replacement courtesy robust OEM sales in the past three years. Simultaneously, segment and industrial segment performance on the industrial side would be dragged by weakness in the drove growth telecom space. Relatively benign lead prices (currently ~US$2,000/tonne) Margins held ground at 15.4% as savings in other expenses were would help keep a lid on input costs, thus imparting an element of stability offset by spike in raw material costs to the margin profile. We build in 6.6% CAGR in sales and ~130 bps improvement in EBITDA margins over FY19-21E. Weak OEM sentiment and threat of business disruption to weigh Maintain REDUCE with unchanged Lithium ion mega opportunity; technologies to co-exist! target price of | 590 per share As per ARBL’s FY19 annual report, lithium ion battery technology promises to be a US$42 billion opportunity if Niti Aayog’s target penetration by 2030 are to be met. However, the company contends that lead acid technology would continue to remain relevant even for electric vehicles given its need Research Analyst
for starter, lighting and ignition (SLI) applications. The company has Shashank Kanodia, CFA Research Equity Retail
developed lithium ion battery for telecom with commercialisation expected [email protected] – in 2019. It has also developed lithium ion solution for UPS with volume ramp Jaimin Desai up seen in 2020. The company has also started work on assembly of battery [email protected] packs for 2W, 3 W and e-rickshaws and remains open to partnerships for exploring further opportunities in this emerging technology.
Valuation & Outlook
We expect sales, PAT to grow at 6.6%, 9.3% CAGR, respectively, in FY19- Securities ICICI 21E. Our outlook on ARBL remains cautious given the continued slowdown in the auto OEM space and emergence of volatility in the business profile brought about by expected increase in usage of lithium ion technology going forward. We maintain our REDUCE rating on the stock with an unchanged target price of | 590 i.e. 17.5x P/E on FY21E EPS of | 33.8.
Key Financial Summary
Key Financials FY17 FY18 FY19 FY20E FY21E CAGR (FY19P-21E) Net Sales 5,317.2 6,059.2 6,793.1 7,019.0 7,717.4 6.6% EBITDA 849.9 883.2 951.8 1,077.0 1,180.3 11.4% EBITDA Margins (%) 16.0 14.6 14.0 15.3 15.3 Net Profit 478.5 471.3 483.5 530.5 577.3 9.3% EPS (|) 28.0 27.6 28.3 31.1 33.8 P/E 22.5 22.8 22.3 20.3 18.6 RoNW (%) 18.5 16.0 14.5 14.3 14.0 RoCE (%) 25.8 23.3 21.2 21.0 20.5
Source: ICICI Direct Research, Company Result Update | Amara Raja Batteries ICICI Direct Research
Exhibit 1: Variance Analysis Q1FY20 Q1FY20E Q1FY19 YoY (%) Q4FY19 QoQ (%) Comments Topline came in ahead of our estimates primarily Total Operating Income 1,815 1,658 1,779 2.0 1,567 15.8 tracking outperformance in the auto replacement market amid muted demand prospects in the auto OEM space
RM as a percentage of sales came in ahead of our Raw Material Expenses 1,226 1,088 1,272 -3.6 1,022 20.0 estimates at 67.6%, up 240 bps QoQ Employee Expenses 99 91 84 16.9 82 20.9 Other expenses came in lower at 11.6% of sales, down Other Expenses 211 224 202 4.3 221 -4.7 250 bps QoQ EBITDA 279 255 220 26.8 242 15.3 EBITDA margins came in at 15.4%, nearly flat QoQ. The EBITDA Margin (%) 15.4 15.4 12.4 300 bps 15.5 -7 bps costs constituents, however, surprised us and were not on expected lines Other Income 10 12 14 -25.4 6 61.9 Depreciation 73 75 63 16.5 68 7.3 Interest 3 1 1 94.0 2 56.2 Tax 72 64 57 28.0 59 22.7 Tax rate for the quarter was at ~34% Reported PAT 141 127 113 24.7 119 18.1 EPS (|) 8.2 7.4 6.6 24.7 7.0 18.1 PAT for the quarter was at | 141 crore, up 25% YoY Key Metrics Media sources indicate volume growth of ~7% of the quarter comprised by ~11% volume growth in the Sales (| crore) 1,815 1,658 1,779 2.0 1,567 15.8 industrial battery segment and ~5% volume growth in the automobile segment RM cost (% to net sales) 67.6 65.6 71.5 -394 bps 65.2 240 bps Other expenses (% to net sales) 11.6 13.5 11.4 25 bps 14.1 -250 bps Employee costs came in on expected lines at 5.4% of Employee Expense (% to net sales) 5.4 5.5 4.7 69 bps 5.2 -20 bps sales Source: Company, ICICI Direct Research
Exhibit 2: Change in estimates FY20E FY21E Comments (| Crore) Old New % Change Old New % Change
Increase in lead prices coupled with healthy demand traction in auto Revenue 6,202 7,019 13.2 6,744 7,717 14.4 replacement demand leads us to upgrade our sales estimates for FY20E, FY21E. We expect sales to grow at a CAGR of 6.6% in FY19-21E
EBITDA 1,016 1,077 6.0 1,115 1,180 5.9 EBITDA margins are expected to be steady at present levels of ~15.3% EBITDA Margin 16.4 15.3 -104 bps 16.5 15.3 -124 bps amid neutral outlook on lead metal prices, which are currently quoting at (%) ~US$2,000/tonne PAT 512 531 3.6 559 577 3.3
Upward revision of sales estimates amid flat EBITDA margin outlook leads EPS (|) 30.0 31.1 3.6 32.7 33.8 3.3 to marginal uptick in earnings estimates for FY20E, FY21E. We expect earnings to grow at a CAGR of 9.3% over FY19-21E
Source: Company, ICICI Direct Research
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Annual Report FY19 highlights Industry dynamics Indian lead acid battery (LAB) industry size is pegged at ~| 30,000 crore. It has been growing at 10-12% CAGR. It is constituted by 50% automotive and 50% industrial with share of organised segment pegged at 60%
Cyclical slowdown in automotive batteries is expected, going forward. However, the management expects ~12- 15% aftermarket growth for organised players
Automotive replacement segment offers better pricing power as it is B2C in nature and has a diffused consumer base. In a broader sense, automobile battery life span is in the range of 3-3.5 years
E-rickshaws are gaining traction as last mile rural connectivity and represents a good opportunity for lead acid players. Motive power and solar applications are new segments to drive industrial growth. Motive currently is 4% of industrial demand vs. 34% globally. India has 37% of Asia’s reserve power market but only 3.5% of motive power Lithium ion batteries (LIB) LIB would be a US$42 billion opportunity if NITI Aayog target of 40% private vehicle penetration and 100% intra city public vehicle penetration by 2030 is met, representing 9x of LAB opportunity
Cell manufacturing opportunity would be US$15 billion. LIB cost would be 30-40% of EV, placing emphasis on localisation
LIB & lead acid batteries (LAB) to co-exist. Contrary to general perceptions, electric cars have a 12v LAB as an auxiliary battery for starter, lighting and ignition (SLI) applications. Going forward, the LAB will continue to be relevant even in the EV world FY19 performance - automotive Outpaced OEM client growth in both OEM and aftermarket segments. The 2-W OEMs market share improved Double digit growth in aftermarket by filling product white spaces, reached production of 1 million units per line. The company also added two more lines for augmenting the production of automotive batteries
Export volumes rose 45% YoY FY19 performance - industrial Volume and value growth across all industrial verticals (telecom, UPS, railway, solar and power utility). Telecom market share improved but outlook remains bleak due to industry overcapacity and segment de growth
It won a contract for setting up large LAB storage facility in Africa. The work is to be completed in 2019 Developed lithium ion battery for telecom. Commercialisation is expected in 2019. Developed lithium ion solution for UPS; volume ramp up seen in 2020 Capacity ARBL announced the establishment of a new greenfield automotive battery plant with a capacity of 6.5 million units with a capital outlay of | 700 crore. The first phase of this new plant will be operational by end of FY20
Pilot facility commissioned for assembly of lithium ion packs for 2/3 W and e-rickshaws
Tubular home UPS batteries capacity increased from 1.1 million units to 1.5 million units The company plans to add three lines dedicated to 2-W segment totalling 5.1 million units Targeting greater utilisation of large VRLA capacity (currently caters to railways and telecom). Would add one more line to medium VRLA taking total capacity to 1.4 billion AH Others While telecom towers in India have been primarily using DG sets and LAB, the new operator in the telecom space opted for LIB. Sector experts indicate that ~95% of its owned towers operate on LIB, which are sourced primarily from China
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Financial story in charts
Exhibit 3: Topline trend
9,000 7,717 8,000 7,019 We expect sales to grow at CAGR of 6.6% over 6,793 7,000 FY19-21E driven by steady state automotive 6,059 6,000 5,317 aftermarket and industrial segment demand 4,618 5,000 4211
(| crore) (| 4,000 3,437 3,000 2,000 1,000 0 FY14 FY15 FY16 FY17 FY18 FY19P FY20E FY21E Total revenues
Source: Company, ICICI Direct Research
Exhibit 4: Profitability trend
800 10.6 12 700 9.8 9.0 10 600 7.5 7.8 7.1 7.6 8 We factor in 9.3% PAT CAGR at ARBL over FY19-21E 500 to | 577 crore 400 6 300 4 200 2 100 411 492 478 471 483 531 577 0 0 FY15 FY16 FY17 FY18 FY19 FY20E FY21E
PAT (| crore) PAT margin (%) (RHS)
Source: Company, ICICI Direct Research
Exhibit 5: Return ratio profile
45.0 36.6
36.0 32.6 32.5 Return ratios trend on a decline tracking muted sales 27.0 25.8 23.3 21.2 20.5 and PAT growth. It is, however, still at comfortable 21.0 (%) 27.2 23.2 level of ~20% as RoCE 18.0 23.3 18.5 14.0 9.0 16.0 14.5 14.3
0.0 FY14 FY15 FY16 FY17 FY18 FY19 FY20E FY21E
RoCE RoNW
Source: Company, ICICI Direct Research
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Exhibit 6: Valuation Summary Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE (| cr) (%) (|) (%) (x) (x) (%) (%) FY17 5317.2 15.1 28.0 -2.7 22.5 12.5 18.5 25.8 FY18 6059.2 14.0 27.6 -1.5 22.8 12.0 16.0 23.3 FY19 6793.1 12.1 28.3 2.6 22.3 11.0 14.5 21.2 FY20E 7019.0 3.3 31.1 9.7 20.3 9.7 14.3 21.0 FY21E 7717.4 9.9 33.8 8.8 18.6 8.7 14.0 20.5
Source: Bloomberg, ICICI Direct Research
Exhibit 7: ARBL currently trading at 18.6x its two-year forward expected EPS 1400
1200
1000
800
(|) 600
400
200
0
Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19
Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18
Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18
Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
Price 39x 34x 28x 23x 18x 12x 7x Source: Reuters, ICICI Direct Research
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Exhibit 8: Recommendation history vs. consensus 1,200 100.0
1,000 80.0 800 60.0
(|) 600 (%) 40.0 400
200 20.0
0 0.0 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19
Price Idirect target Consensus Target Mean % Consensus with BUY
Source: Reuters, ICICI Direct Research
Exhibit 9: Top 10 shareholders Rank Name Latest Filing Date % O/S Position (m) Change (m) 1 RNGalla Family Pvt. Ltd. 30-Jun-19 24.2 41.4 0.00 2 Panther ARBL Holdings L.P. 30-Jun-19 24.0 41.0 41.00 3 Nalanda Capital Pte Ltd 30-Jun-19 8.0 13.6 0.30 4 ICICI Prudential Asset Management Co. Ltd. 30-Jun-19 4.0 6.8 2.65 5 UTI Asset Management Co. Ltd. 30-Jun-19 2.4 4.1 1.12 6 Johnson Controls Mauritius Pvt. Ltd. 30-Jun-19 2.0 3.4 -41.00 7 Amara Raja Group 30-Jun-19 1.8 3.1 0.00 8 Wasatch Advisors, Inc. 31-Mar-19 1.6 2.8 0.02 9 ICICI Prudential Life Insurance Company Ltd. 30-Jun-19 1.1 1.8 1.85 10 L&T Investment Management Limited 30-Jun-19 1.0 1.8 0.52 Source: Reuters, ICICI Direct Research
Exhibit 10: Recent activity Buys Sells Investor name Value ($ mn) Shares (mn) Investor name Value ($ mn) Shares (mn) Panther ARBL Holdings L.P. 368.65 41.00 Johnson Controls Mauritius Pvt. Ltd. -368.65 -41.00 ICICI Prudential Asset Management Co. Ltd. 23.84 2.65 Franklin Templeton Asset Management (India) Pvt. Ltd. -7.06 -0.78 ICICI Prudential Life Insurance Company Ltd. 16.64 1.85 Fidelity Management & Research (Hong Kong) Limited -3.68 -0.35 UTI Asset Management Co. Ltd. 10.07 1.12 DNB Asset Management AS -3.06 -0.32 Kotak Mahindra Asset Management Company Ltd. 6.09 0.59 Principal Asset Management Private Limited -2.49 -0.26 Source: Reuters, ICICI Direct Research
Exhibit 11: Shareholding pattern (in %) Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Promoter 52.1 52.1 52.1 52.1 28.1 FII 20.3 20.4 20.7 19.4 26.7 DII 10.0 9.4 9.2 10.3 4.1 Others 17.7 18.1 18.1 18.2 41.2 Source: Company, ICICI Direct Research
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Financial Summary
Exhibit 12: Profit and loss statement | crore Exhibit 13: Cash flow statement | crore (Year-end March) FY18 FY19 FY20E FY21E (Year-end March) FY18 FY19 FY20E FY21E Total operating Income 6,059 6,793 7,019 7,717 Profit after Tax 471.3 483.5 530.5 577.3 Growth (%) 14.0 12.1 3.3 9.9 Add: Depreciation 230.3 261.2 310.2 347.3 Raw Material Expenses 4,116.3 4,644.1 4,722.0 5,188.6 (Inc)/dec in Current Assets -565.8 -106.3 -199.2 -231.9 Employee Expenses 309.0 345.2 384.5 443.5 Inc/(dec) in CL and Provisions 233.4 -90.5 85.5 98.3 Other Expenses 750.7 852.0 835.5 904.8 CF from operating activities 369.3 547.9 727.0 790.9 Total Operating Expenditure 5,175.9 5,841.4 5,942.0 6,537.0 (Inc)/dec in Investments 0.0 0.0 0.0 0.0 EBITDA 883.2 951.8 1,077.0 1,180.3 (Inc)/dec in Fixed Assets -427.6 -460.5 -450.0 -450.0 Growth (%) 3.9 7.8 13.2 9.6 Others 23.3 -37.1 136.3 -31.1 Depreciation 230.3 261.2 310.2 347.3 CF from investing activities (291.3) (491.6) (546.8) (590.1) Interest 5.1 7.0 4.7 4.7 Issue/(Buy back) of Equity 0.0 0.0 0.0 0.0 Exceptional Items 0.0 0.0 0.0 0.0 Inc/(dec) in loan funds 0.0 0.0 0.0 0.0 PBT 714.2 730.4 803.5 874.7 Dividend paid & dividend tax -85.3 -145.6 -154.2 -164.5 Total Tax 242.9 246.9 273.0 297.4 CF from financing activities (137.5) (95.8) (154.2) (164.5) PAT 471.3 483.5 530.5 577.3 Net Cash flow -59.6 -39.6 26.0 36.3 Growth (%) -1.5 2.6 9.7 8.8 Opening Cash 170.9 111.3 71.7 97.7 EPS (|) 27.6 28.3 31.1 33.8 Closing Cash 111.3 71.7 97.7 134.0 Source: Company, ICICI Direct Research Source: Company, ICICI Direct Research
Exhibit 14: Balance Sheet | crore Exhibit 15: Key ratios (Year-end March) FY18 FY19 FY20E FY21E (Year-end March) FY18 FY19 FY20E FY21E Liabilities Per share data (|) Equity Capital 17.1 17.1 17.1 17.1 EPS 27.6 28.3 31.1 33.8 Reserve and Surplus 2,920.3 3,318.2 3,694.5 4,107.3 Cash EPS 41.1 43.6 49.2 54.1 Total Shareholders funds 2,937.4 3,335.3 3,711.6 4,124.3 BV 172.0 195.3 217.3 241.5 Total Debt 58.4 46.8 46.8 46.8 DPS 4.2 7.1 7.5 8.0 Deferred Tax Liability 87.8 95.9 99.1 109.0 Cash Per Share 10.8 17.2 17.7 19.5 Total Liabilities 3,175.6 3,593.4 3,972.9 4,395.5 Operating Ratios (%) Assets EBITDA Margin 14.6 14.0 15.3 15.3 Gross Block 2,249.0 2,621.2 3,185.9 3,635.9 PBT / Net sales 10.8 10.2 10.9 10.8 Less: Acc Depreciation 550.9 812.1 1,127.9 1,475.2 PAT Margin 7.8 7.1 7.6 7.5 Net Block 1,698.2 1,809.1 2,058.0 2,160.7 Inventory days 63.2 57.0 60.0 60.0 Capital WIP 226.4 314.7 200.0 200.0 Debtor days 47.1 41.3 45.0 45.0 Total Fixed Assets 1,929.7 2,128.9 2,261.7 2,364.4 Creditor days 35.7 27.4 30.0 30.0 Investments 35.1 20.5 120.5 270.5 Return Ratios (%) Inventory 1,049.7 1,061.4 1,153.8 1,268.6 RoE 16.0 14.5 14.3 14.0 Debtors 782.5 768.6 865.4 951.5 RoCE 23.3 21.2 21.0 20.5 Loans and Advances 9.2 8.6 8.9 9.8 RoIC 23.9 22.7 22.5 22.9 Other Current Assets 65.0 184.4 293.4 303.2 Valuation Ratios (x) Cash 111.3 71.7 97.7 134.0 P/E 22.8 22.3 20.3 18.6 Total Current Assets 2,017.6 2,094.7 2,419.2 2,667.0 EV / EBITDA 12.0 11.0 9.7 8.7 Creditors 592.3 510.4 576.9 634.3 EV / Net Sales 1.8 1.5 1.5 1.3 Provisions 56.0 61.9 70.0 76.9 Market Cap / Sales 1.8 1.6 1.5 1.4 Other current liabilities 287.5 344.8 330.1 341.1 Price to Book Value 3.7 3.2 2.9 2.6 Total Current Liabilities 935.7 917.1 977.0 1,052.3 Solvency Ratios Net Current Assets 1,081.8 1,177.6 1,442.2 1,614.6 Debt/Equity 0.0 0.0 0.0 0.0 Other Non-Current Assets 74.7 66.8 144.2 144.2 Current Ratio 2.0 2.4 2.4 2.4 Application of Funds 3,175.6 3,593.4 3,972.9 4,395.5 Quick Ratio 1.0 1.2 1.2 1.2 Source: Company, ICICI Direct Research Source: Company, ICICI Direct Research
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Exhibit 16: ICICI Direct Research coverage universe (Auto & Auto Ancillary) Sector / Company CMP M Cap EPS (|) P/E (x) EV/EBITDA (x) RoCE (%) RoE (%) (|) TP(|) Rating (| Cr) FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E Amara Raja (AMARAJ) 630 590 Reduce 10761 28.3 31.1 33.8 22.3 20.3 18.6 11.0 9.7 8.7 21.2 21.0 20.5 14.5 14.3 14.0 Apollo Tyre (APOTYR) 175 180 Hold 10017 11.9 16.8 21.5 15.8 11.2 8.7 6.8 6.8 5.6 8.2 8.6 10.2 8.3 9.0 10.5 Ashok Leyland (ASHLEY) 79 100 Hold 23264 6.8 5.9 5.3 11.7 13.5 15.0 8.1 8.6 9.0 27.5 24.1 20.9 24.4 19.3 16.5 Bajaj Auto (BAAUTO) 2570 2800 Reduce 74364 161.6 173.0 190.8 18.9 17.6 16.0 14.3 12.3 10.7 21.0 21.0 28.0 19.9 20.4 20.0 Balkrishna Ind. (BALIND) 733 740 Hold 14170 40.5 40.9 45.3 19.2 19.0 17.2 11.8 10.6 9.1 20.4 19.0 19.3 16.7 19.0 19.3 Bharat Forge (BHAFOR) 437 535 Buy 32590 22.2 23.8 25.4 21.0 19.5 18.3 11.9 11.0 10.3 18.4 18.5 19.1 19.1 17.9 17.5 Bosch (MICO) 15151 15550 Reduce 46240 523.6 538.6 573.1 32.5 31.6 29.7 23.3 22.0 20.5 17.5 15.9 15.0 25.8 23.5 22.3 Eicher Motors (EICMOT) 17077 19000 Hold 46553 808.1 902.5 1032.7 23.2 20.8 18.2 16.6 14.5 12.0 32.5 29.5 28.5 24.8 22.6 21.4 Escorts (ESCORT) 495 600 Hold 6070 39.6 42.0 48.1 16.7 15.7 13.7 10.6 9.1 7.8 21.0 21.7 21.6 15.6 14.7 14.6 Exide Industries (EXIIND) 192 200 Reduce 16320 9.1 9.5 10.4 21.7 22.5 20.8 12.7 11.8 10.7 18.4 17.8 17.5 12.9 12.3 12.1 Hero Moto (HERHON) 2406 2700 Hold 48052 169.5 173.0 192.1 14.8 14.5 13.1 9.2 8.8 7.5 37.1 34.4 34.9 26.3 24.3 24.5 JK Tyre & Ind (JKIND) 75 100 Buy 1706 7.8 4.6 7.9 10.3 17.4 10.1 6.3 7.2 6.2 10.9 9.1 10.5 10.3 6.5 9.5 Mahindra CIE (MAHAUT) 195 230 Buy 7382 13.2 14.1 17.1 14.8 13.8 11.4 7.8 7.8 6.4 12.4 11.1 11.9 13.2 12.6 14.2 Maruti Suzuki (MARUTI) 5919 5815 Sell 178798 248.3 239.1 287.5 27.8 28.9 24.0 15.8 16.1 12.6 16.3 14.5 16.6 16.3 14.4 15.6 Motherson (MOTSUM) 111 125 Hold 35132 5.1 5.0 6.5 23.5 23.9 18.4 8.5 8.5 6.6 13.5 12.3 16.0 14.7 13.2 15.5 Tata Motors (TELCO) 157 185 Hold 46602 -84.6 18.8 26.3 -2.1 9.6 6.9 4.1 3.1 2.7 5.6 11.3 12.7 7.1 15.4 17.1 Wabco India (WABTVS) 6199 6510 Hold 11759 148.8 157.7 178.3 41.7 39.3 34.8 26.6 24.5 21.5 15.9 14.5 14.3 23.0 21.4 21.0
Source: Reuters, ICICI Direct Research
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Buy: >15% Hold: -5% to 15%; Reduce: -15% to -5%; Sell: <-15%
Pankaj Pandey Head – Research [email protected]
ICICI Direct Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) Mumbai – 400 093 [email protected]
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ANALYST CERTIFICATION
I/We, Shashank Kanodia, CFA, MBA (Capital Markets), and Jaimin Desai, CA, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. It is also confirmed that above mentioned Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months and do not serve as an officer, director or employee of the companies mentioned in the report.
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