India Equity Analytics for today - Buy Stocks of Divi’s Laboratories and Godrej Consumer

8/13/2019 India Equity Analytics for today - Buy Stocks of Divis Laboratories and Godrej Consumer

1/22

DIVISLAB : Good Growth Ahead "BUY" 19th Dec 2013

The company posted strong 2QFY4 results with net sales growing to Rs 566 Cr up by 19.7% YoY on the back of good growth coming from allbusiness segments. The generic API grew by 18% YoY to Rs 261 Cr for the quarter and CRAMS business segment grew by 20% YoY to Rs 271

Cr............................................. ( Page : 2-4)

IEA-EquityStrategy

19th Dec, 2013

UCO BANK : "BUY" 17th Dec 2013We have the reduce the target price of UCO bank from Rs.94 to Rs. 84 on account of banks unlikely to get benefit of western sanction againstIran. Late last month US and six other major powers have imposed sanction against Iran for its nuclear deal. In order to quality for waiversanction against Iran, India has cut back sharply on purchase of oil from Iran. UCO was the major beneficiary of current account deposits of India-Iran oil facilities. In our banking sector coverage universe, UCO banks cost of deposits were lowest at 6.1% whereas yield on loan was10.1% at the end of 2QFY14. After this development, banks margin would be impacted and accordingly UCO bank loses the valuation premium.

Although banks management is focusing on other area of growth like branch expansion and customer acquisition. We slightly tweak ourearnings and reduce our book value estimate from Rs.175.5 to Rs.168.8. Now our revised price target for the stock would be Rs.84 which is 0.5times of FY14E book value................ Pa e :16-20

TCS : "Positive commentary" "BUY" 18th Dec 2013

TCS on its management Interview to Media highlighted that; For earning and demand prospect, FY15 will be better than the ongoing fiscal onaccount of uptick in client spending in the US and Europe and growth in demand for technologies like cloud, mobility and Big Data.We maintain"BUY" view on the stock with a target price of Rs 2550. Taking the INR/USD (average value) at Rs60 for FY14E and Rs59.5 for FY15E, We upgradeEPS from Rs87.4 to Rs90.7 for FY14E and from Rs99.3 to Rs 102.4 for FY15E........................ ( Page : 14-15)

Godrej Consumer Product : " Strategy Shining" "BUY" 19th Dec 2013

Its strong 20%+ growth in the domestic household insecticides business is the key growth driver. We expect strong momentum to continue in

its international business led by Megasari and consolidation of Darling business. Despite some concerns related to higher leverage, lostdomestic focus and currency risk, we remain confident of achieving the 20%+ sales growth with strong PAT growth for FY14E & beyond............................................ ( Page : 9-10)

AXIS BANK : "Neutral" 19th Dec 2013Axis bank is trading at 1.6 times of one year forward book which is almost upper side of bear case valuation band. We are not seeing banksearnings better than expectation as banks has significant exposure in riskier sector like infrastructure and power as compare to its peers. Wehave taken banks valuation multiple in bear case scenario on account of non visibility of ROE improvement and expected muted earningsgrowth. We assume loan and deposits growth of 16% and 15% along with margin at 3.5%. Better than expected performance will lead price

erformance and valuation multi le............................... Pa e : 5 - 8

BANK OF INDIA : "BUY" 18th Dec 2013Bank of India is trading at 0.5 times of one year forward book which is the lowest in valuation band despite of performing better thanexpectation largely due to lower CAR and slower economic growth. With the capital infusion to the tune of Rs.1000 cr and improving sign of asset quality would re-rate the stock as it did previously in our view. The management guided fresh slippage in line with 2QFY and inch uphigher restructure asset for December quarter. We believe that current level is attractive entry point for the investor with time horizon morethan one year with price target of Rs.235.................................... ( Page : 11- 13)

email: [email protected], website : www.narnolia.com

Narnolia Securities Ltd, 402, 4th floor 7/1, Lords Sinha Road Kolkata 700071, Ph 033-32011233 Toll Free no : 1-800-345-4000

JLR VOLUME UPDATE : NOVEMBER 2013 16th Dec 2013

JLR wholly owned subsidiary of Tata Motors come up with November 2013 volume, the company for the month sold 37403 units up by 25%YoY. This total volume of JLR includes 6244 units of Jaguar and 31159 units of Land Rover. This months performance in particular is marked bystellar performance by Jaguar .................................................... ( Page : 21)

India Equity Analytics


2/22

BUY

1M 1yr YTDsolute 2.8 4.4 1.4l. to Nifty 0.1 -1.3 -14.6

Current 1QFY14 4QFY1omoters 52.1 52.2 52.2

15.8 14.9 14.0I 12.5 12.5 13.3

hers 19.5 20.5 20.5

Financials Rs, Cror2QFY14 1QFY14 (QoQ)-% 2QFY13 (YoY)-%

Revenue 567 517 9.7 474 19.6EBITDA 249 197 26.4 165 50.9PAT 205 174 17.8 117 75.2EBITDA Margin 43.9% 38.1% 580bps 34.8% 910bpsPAT Margin 36.2% 33.7% 250bps 24.7% 1150bps

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

ock Performance-%

are Holding Pattern-%

kt Capital (Rs, Cr)

fty 6217

-

esult UpdateMP 1186

ne Year Price vs Nifty

(Source: Company/Eastwind)

15631erage Daily Volume 5.43

About The Company :Divis Laboratories Limited is an India-based manufacturer of Active PharmaceuticalIngredients (APIs) and Intermediates. Divi is engaged in manufacture of generic APIs,custom synthesis of active ingredients for innovator companies and other specialtychemicals like peptides and nutraceuticals.

Investment Rationale :ange from Previous -

DIVISLABGood Growth Ahead

rget Price 1350evious Target Price

SE Symbol DIVISLAB

arket DataE Code 532488

14%side

The company have one more business segment Nutraceuticals relatively smaller andnewer as compared to other business segment can act as growth driver going forward. Themanagement of the company is quite optimistic for this business segment and has guidedthat this business at 40-50% CAGR (albeit on a low base) over the next 2-3 years.

2QFY14 Results Update.The company posted strong 2QFY4 results with net sales growing to Rs 566 Cr up by

19.7% YoY on the back of good growth coming from all business segments. The generic API grew by 18% YoY to Rs 261 Cr for the quarter and CRAMS business segment grew by20% YoY to Rs 271 Cr. The company derives almost 45-50% of revenues each fromCRAMS and generic API business while rest comes from Nutraceuticals.

The operating EBITDA for the quarter came at Rs 250 Cr and OPM at 43.9 %. Company2QFY14 EBITDA margins were higher than 34.8% reported in Q2FY13 on account of higher gross margins, lower power cost and forex loss in Q2FY13.The RM cost as % of netsales stands at 50% for the 2QFY14 while employee cost as % of net sales was 10 %.

Company is one of the few CRAMS (Contract Research and Manufacturing Services)players with a superior business mix comprising high-margin custom synthesis of APIs(Active Pharma Ingredients) and intermediates for innovator companies. The companycollaborates with innovators throughout the product development cycle. Postcommercialization, company is usually the key supplier of APIs and intermediates for theseproducts to the innovators. In 2012-13, the company added six products to its customsynthesis portfolio.The CRAMS business which contributes nearly 45%- 50% of the total revenues have fromRs 560 Cr in 2009 to Rs 1000 Cr translating CAGR of 15 %.The Generic API business

which contributes another 45-50 % to the total revenues is also well track after witnesssome pressure in FY10.As on FY13 this segment contributed Rs 1029 Cr to the totalrevenues and this segment to more revenues to the company in the light of upcomingpatent cliff of US and new launches .

wk Range H/L 1189/905

"BUY"19 th Dec' 13

Narnolia Securities Ltd,


3/22


mpany has capitalized Fixed assets to the tune of Rs120 Cr for H1 FY14. The companyll commercialize DSN SEZ by the end of the year and the FDA inspection post that. Thew DSN SEZ contribution will start in Q1 FY15E and full benefits will fructify only from Q2

Y15E.The existing DSN blocks contributed Rs125 Cr revenues in Q2 FY14 as against70.8 Cr in Q1 FY14.

anagement Guidancee management of the company after strong 2QFY14results expects that revenue to

ow by 15-20 % (15% guided earlier), with FY15E growth expected above 20%. Theanagement further indicated that this high level of OPM is not sustainable but reiteratedat 38% levels OPM is quite reachable . On Power shortage ,which declined the OPM in

QFY14 has been solved and will aid margin expansion going forward. The capex

idance stands at INR500-600m (apart from INR2b addition from CWIP) and tax rateidance remains between 23-24%.

ew & Valuatione company is not only the most profitable company in the CRAMS space, but also

atures among the most profitable companies in the Indian healthcare sector with EBIDTAargin of 35-40% backed by its strong chemistry skills and custom synthesis presence.Theck is currently trading at CMP of Rs 1186, strong 2QFY14 results ,optimistic

anagement guidance and better business model in comparison to its peers makes usnfident for the stock. We are positive for the stock and recommend BUY withrget price of Rs 1350.


DIVISLAB

ntinuede net profits for the 2QFY14 came at Rs 205 Cr and NPM came at 36.2%.The net profitso include forex gain of Rs 31 Cr. The company reports its forex gain under other

come headings and forex loss under its other expenditure head. The tax rate for thearter stands at 22%.

aphical Depiction

venue Break Up: 2QFY14



4/22

DIVISLAB

les and PAT Trend (Rs)


Net sales growing to Rs 566 Cr up by 19.7%YoY on the back of good growth coming fromall business segments.

2QFY14 EBITDA margins were higher than34.8% reported in Q2FY13 on account of higher gross margins, lower power cost andforex loss in Q2FY13.

PM %


PM %

The 2QFY14 PAT also include forex gain of Rs

31 Cr. The company reports its forex gain

under other income headings and forex loss

under its other expenditure head.





5/22

AXIS BANK

1286

13251247

36.3

1M 1yr YTDsolute 12.9 -5.2 -5.2l.to Nifty 12.6 -10.9 -10.9


I 40.7 4094.0 39.6I 8.8 8.5 10.0hers 16.6 16.6 17.0

Financials Rs, Cr 2011 2012 2013 2014E 2015E

NII 6566 8026 9666 12620 14710Total Income 11238 13513 16217 19715 21804PPP 6377 7413 9303 11238 12429Net Profit 3340 4224 5179 6343 6977EPS 81.4 102.2 110.7 135.2 149.1

kt Capital (Rs Cr)


ock Performance

erage Daily Volume

hange from Previous

xis Bank Vs Nifty


2066127fty 6217

ompany Update NEUTRALMP

rget Price

Ax is bank is tradi ng at 1.6 tim es of one year forw ard boo k whic h we believ e

that it is high er sid e of our bear cas e valu ation ban d. We hav e neith er seen

valuat ion band expansion nor did earnings lead price performanc e. Axi s bank has s ig nif ican t expos ure in infrastru cture and po wer (12.64% in 2QFY14) as

com pare to it s peer g roup . Ass e t qua l ity p ressure may pers i s t s in com ing

quar te r s which res t r i c t banks valuat ion m ult iple in th e range of 1.4 to 1.6

tim es of bo ok in our view. We adv ice our inves tor s to bo ok part profit at the

curren t level . Our valuat ion mult iples are based upon banks p resen t g rowth

p a ra m et er s , b e tt er t h an e x pe c te d p e rf o rm a n c e a n d v i s ib i li ty o f R OE

improv ement wi l l expand va lua t ion and mul t ip les .

39764

evious Target Price

arket Data

pside

1549/763

SE Code 532215SE Symbol AXISBANKwk Range H/L

Heal thy NII g rowth o n the back o f m arg in improvem ent and loan g rowth

Sequentially stable asset quality help to make lower provisionOn asset quality front, Axis bank reported 10 bps deterioration in GNPA onsequential basis to 1.4%. In absolute term GNPA increased by 10% QoQ andprovision increased by 12% QoQ. This led net NPA increased by 6% sequentially. Inpercentage term NPA stood at 0.4%, flat on QoQ basis. Provision coverage ratio(without technical write off) was improved by 100 bps to 69.3% and PCR at technicalwrite off was 89%. During quarter bank made loan loss provision of Rs.687 cr versus

Rs.712 cr in 1QFY14 and Rs.509 cr in 2QFY13. On sequential basis risky sector like power and infrastructure exposure remain flat at 12.64% from 12.67% in1QFY14.

Declined in cost income ratio led robust growth in operating profitOperating expenses increased by 12.1% YoY to Rs.1953 cr in which employee costand other operating cost increased by 11.4% and 12.5% respectively. Cost incomeratio declined by 440 bps to 41.5% from 44.9% in 2QFY13. Employee cost and other operating cost as a percentage of total assets remain flat at 0.2% and 0.4%

respectively. With the support of healthy NII, fee income and improvement of costincome, operating profit grew by 29% YoY and -3.3% in QoQ to Rs.2750 cr.Sequential declined of operating profit was due to gain of treasury income in1QFY14 which was absent in 2QFY14.

During 2QFY14, Axis bank reported NII growth of 26.2% YoY largely due to 50 bps

YoY improvement of margin and 577 bps YoY increased of credit deposits ratio and

17% increased in loan growth. Axis banks interest earnings assets increased by

20% YoY whereas interest bearing liabilities increased by 13% YoY. Total revenue

of the bank grew by 21.3% YoY to Rs.4703 cr. Non- interest income registered

growth of 14% YoY to Rs.1766 cr.

"NEUTRAL "19th Dec, 2013



6/22

n business growth parameters, banks total business grew by 12% YoY to Rs.4567 bnagainst Rs.4077 bn. Deposits grew by moderate pace with 8% YoY while current

posits and saving deposits grew by 9% and 18% respectively taking overall CASA ratio42.9%. Banks strategy to focus on retail deposits seem well is shaping as share of

ail deposits in term deposits increased continuously to 45.2% from 40.3% in21QFY13.an grew by 17% YoY to Rs.20130 bn. Incremental loan growth came from retail

vance and SME segment. Share of retail loan increased to 30.2% of overall loan from.7% in 2QFY13. Banks has decreased in share of risky sector (Power & Infrastructure)

posure to 12.64% from 13.63% in 2QFY13. Credit deposits ratio improved by 577 bpsY to 78.8% implying best utilization of excess liquidity in balance sheet.

quential declined of margin owing to flat loan yield

xis bank delivered good set of numbers during quarter but exposure to stress sector main at 12%+ level. Moreover Axis bank has higher exposure in small, mediumterprises and infra segment in comparison to peers. In challenging macro environmentd tight liquidity situation, Axis bank is more vulnerable among peers. At the currentce of Rs.1286, stock is trading at 1.6 times of one year forward book which is upper

de of bear case valuation band. We advice book part profit at current level. We valuenk at multiple of 1.4 to 1.6 times of one year forward book which implies Rs. pricenge of Rs.1247 to Rs.1325.

AXIS BANK


uring quarter bank reported 7 bps QoQ declined in NIM to 3.79% led by 500 bpsquentially declined of credit deposits ratio and almost flat of loan yield on QoQ basis.an yield during the quarter was 10.5% and cost of deposits declined from 7.4% to

1% sequentially.

luation & View

ealthy NII growth and controlled CI ratio along with stable margin help to boostprofit

ith the support of healthy NII growth and controlled operating expenses led net profit of

% YoY to Rs.1362 cr from Rs.1081 cr. Consequently ROA improved by 12 bps to 1.6%

d ROE declined to 15.3% from 17.5% in 2QFY13 largely due to operating leveraging.

odest deposits growth and strong traction in loan growth



7/22

AXIS BANK

Source: Eastwind/Company



uarterly Result 2QFY14 1QFY14 2QFY13 % YoY Gr % QoQ Grterest/discount on advances / bills 5394 5189 4736 13.9 4.0come on investments 2143 2015 1897 13.0 6.3

terest on balances with Reserve Bank of India 35 34 22 58.9 2.6

thers 37 39 32 14.9 -5.5otal Interest Income 7609 7278 6687 13.8 4.6ee Income 1432 1317 1343 6.6 8.7 ading Income 5 440 207 -97.6 -98.9iscellaneous Income 329 24 0 - 1270.2thers Income 1766 1781 1551 13.9 -0.9otal Income 9375 9059 8238 13.8 3.5terest Expended 4672 4413 4360 7.2 5.9II 2937 2865 2327 26.2 2.5ther Income 1766 1781 1551 13.9 -0.9otal Income 4703 4647 3877 21.3 1.2mployee 644 643 578 11.4 0.1ther Expenses 1309 1160 1164 12.5 12.9perating Expenses 1953 1803 1742 12.1 8.3PP( Rs Cr) 2750 2844 2136 28.8 -3.3ovisions 687 712 509 35.0 -3.5

BT 2062 2131 1626 26.8 -3.2ax 700 722 545 28.4 -3.1et Profit 1362 1409 1081 26.0 -3.3

alance Sheet Date ( Rs Bn)et Worth 362 349 252 43.6 3.7 eposits 2554 2384 2356 8.4 7.1oan 2013 1982 1721 16.9 1.6

sset qualtiy( Rs Cr)NPA 2734 2490 2191 24.8 9.8PA 838 790 654 28.1 6.1GNPA 1.4 1.3 1.3NPA 0.4 0.4 0.4


8/22

NANCIALS & ASSUPTION

AXIS BANK




ncome Statement 2011 2012 2013 2014E 2015Eterest Income 15155 21995 27183 33243 38426

terest Expense 8589 13969 17516 20622 23716II 6566 8026 9666 12620 14710hange (%) 31.2 22.2 20.4 30.6 16.6on Interest Income 4671 5487 6551 7095 7095otal Income 11238 13513 16217 19715 21804hange (%) 25.3 20.2 20.0 21.6 10.6perating Expenses 4860 6100 6914 8478 9376re Provision Profits 6377 7413 9303 11238 12429hange (%) 22.4 16.2 25.5 20.8 10.6rovisions 3033 3189 4124 2176 2461

BT 3345 4224 5179 9062 9967AT 3340 4224 5179 6343 6977hange (%) 34.8 26.5 22.6 22.5 10.0

alance Sheeteposits( Rs Cr) 189166 219988 252614 290506 334081hange (%) 34 16 15 15 15 which CASA Dep 77758 91412 112100 124917 143655

hange (%) 18 18 23 11 15orrowings( Rs Cr) 26268 34072 43951 51266 58956vestments( Rs Cr) 71788 92921 113738 129873 149354oans( Rs Cr) 142408 169760 196966 228481 265037hange (%) 36 19 16 16 16

aluationook Value 460 549 708 828 957MP 1404 1146 1304 1288 1288

BV 3.1 2.1 1.8 1.6 1.3


9/22

Godrej Consumer Product

840

96072514%32%

Godrej Consumer aims to grow 10 times in the next 10 years.Key updates;

1M 1yr YTDsolute -2.1 17.6 27.0l. to Nifty -4.8 11.5 8.8

Current 1QFY14 4QFY13omoters 63.3 63.3 63.5I 28.7 28.3 28.2I 1.2 1.2 1.2

hers 6.8 7.2 7.1

Financials Rs, C2QFY14 1QFY14 (QoQ)-% 2QFY13 (YoY)-%

Revenue 1961.7 1724.9 13.7% 1600.32 22.6%EBITDA 299.8 225.4 33.0% 248.96 20.4%PAT 195 133 46.6% 159.31 22.4%EBITDA Margin 15.3% 13.1% 210bps 15.6% (30bps)PAT Margin 9.9% 7.7% 220bps 10.0% (10bps)

kt Capital (Rs Cr)



ock Performance

The company does not see companys margins coming under pressure going ahead,due to heavy investments it has made in advertisements. We expect 15-15.5% EBITDAmargin for FY14E and 15.5-16% for FY15E.

ange from Previous

yr Forward P/B


120012fty 6217

Godrej Consumer's management is hopeful of seeing an uptick in the urban demand

and the rural demand is expected to be strong due to good harvest. We expect 20-22%(YoY) sales growth for 3QFY14.

" Strategy Shining"

MP

side

Key fac t s f rom recen t Managemen t Comment s :

rget Price

ompany update BUY

erage Daily Volume28593

evious Target Price

977/693

E Code 532424SE Symbol GODREJCP

arket Data

wk Range H/L

View and Valuations: Its strong 20%+ growth in the domestic household insecticidesbusiness is the key growth driver. We expect strong momentum to continue in itsinternational business led by Megasari and consolidation of Darling business. Despitesome concerns related to higher leverage, lost domestic focus and currency risk, weremain confident of achieving the 20%+ sales growth with strong PAT growth for FY14E& beyond. At a CMP of Rs840, stock trades at 5.7x FY15E P/BV. We retain BUY with a

price target of Rs 960.

On International revenue front, Godrej Consumer could see some threads in certainareas especially Indonesia (18% of sales) and Nigeria (13% of sales), Indonesia is goinginto election next year and in Nigeria, there have been wage hikes.

Demand Pickup scenario: On demand side scenario, we expect that the strongagricultural season leading to strong rural GDP growth would support to improvedemand environment very soon. Considering recent GDP growth and Current AccountDeficit (CAD) numbers, we are expecting that the economy is moving to track and urbandemand will see some picking up.Strong focus on driving growth with 10x10 strategy: Its strong focus on driving growthin the domestic and international market by expansion of products and distributionreach, we expect strong earning in near future. With launching new products indomestic as well as international mkt, Godrej CP will explore organic & inorganic growth.Along with its 3x3 strategy, it has 10x10 strategy also, which refers to 10x growth in 10yrs.Products strategy: The company continues to gain and enjoy market leader ship positionacross all three formats. The company is driving increase in penetration with launch of

"Goodknight Advanced colour play". The company has launched Goodknight aerosol andcoil in Nigeria.Recent developments: The Company has entered into an agreement on Oct 7, 2013, toacquire a 30% stake in Bhabani Blunt Hair Dressing Pvt Ltd, a premier hair saloncompany with one of the strongest consumer franchises in this space.

"BUY"19th Dec' 13



10/22

Godrej Consumer Product

egionwise margin:

uaterly snapshot:


nancials and Valuation



ly, 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14es Gr(YoY) 23% 36% 31% 39% 35% 26% 30% 23.9% 22.6%T Gr(YoY) -2.6% 68.3% 36.0% -45.5% 24.7% 3.1% 58.7% 1.8% 22.4%ITDA Margin 18.0% 20.1% 18.9% 14.5% 15.6% 16.8% 16.2% 13.1% 15.3%

T Margin 12.0% 13.9% 13.5% 12.1% 10.8% 11.3% 13.3% 9.0% 10.9%

gions 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14dia 18.9% 20.4% 20.2% 15.1% 17.6% 18% 16.7% 15.8% 18.9%donesia 19.4% 20.6% 20.7% 18% 19% 20% 19% 15% 17%rica 26.0% 31% 19.3% 19% 16% 20% 7% 13% 14%tin America 7.4% 9% 16.3% 3% 4% 8% 9% 3% 7%rope 11% 5% 10.5% 13% 9% 5% 13% 9% 10%

, in Cr FY10 FY11 FY12 FY13 FY14E FY15Eles 2041.2 3693.6 4866.16 6390.79 7823.32 9198.58her Operating Income 2.5 28.11 45.93 16.58 20.30 23.86

otal income from operations 2043.7 3721.71 4912.09 6407.37 7843.62 9222.44M Cost 619.59 1458.28 2174.67 2640.31 3176.67 3781.20urchases of stock-in-trade 367.16 294.12 356.11 451.03 552.13 649.19IP -40.45 -45.22 -212.26 -118.06 -183.50 -224.07

mployee Cost 151.81 284.51 391.91 590.68 723.08 850.19d Spend 132.8 352.85 449.86 660.35 902.02 1014.47her expenses 402.98 695.96 850.47 1196.46 1459.0 1689.7

otal expenses 1633.89 3040.5 4010.76 5420.77 6629.4 7760.7BITDA 409.81 681.21 901.33 986.6 1214.2 1461.7epreciation and Amortisation 23.6 49.92 64.44 77 94.3 102.1her Income 44.81 24.13 6.07 67.78 47.8 56.2

xceptional Item 0 41.14 200.17 96.12 78.4 92.2BIT 386.21 631.29 836.89 909.6 1119.9 1359.6terest 11.1 43.64 65.84 77.45 61.1 53.2

BT 419.92 652.92 977.29 996.05 1185.1 1454.9ax Exp 80.33 138.21 226.05 179.18 225.17 290.98AT 339.59 514.71 751.24 816.87 959.9 1163.9rowth-% (YoY)les 46.3% 81.0% 31.7% 31.3% 22.4% 17.6%

BITDA 95.2% 66.2% 32.3% 9.5% 23.1% 20.4%AT 97.0% 51.6% 46.0% 8.7% 17.5% 21.3%xpenses on Sales-%M Cost 30.3% 39.2% 44.3% 41.2% 40.5% 41.0%d Spend 6.5% 9.5% 9.2% 10.3% 11.5% 11.0%mployee Cost 7.4% 7.6% 8.0% 9.2% 9.2% 9.2%her expenses 19.7% 18.7% 17.3% 18.7% 18.6% 18.3%

ax rate 19.1% 21.2% 23.1% 18.0% 19.0% 20.0%argin-%

BITDA 20.1% 18.3% 18.3% 15.4% 15.5% 15.8%BIT 18.9% 17.0% 17.0% 14.2% 14.3% 14.7%AT 16.6% 13.8% 15.3% 12.7% 12.2% 12.6%

aluation:MP 261.0 365.0 559.0 836.0 840.0 840.0o of Share 30.8 32.4 34.0 34.0 34.0 34.0W 954.7 1725.2 2815.2 3313.0 4073.9 5038.8PS 11.0 15.9 22.1 24.0 28.2 34.2VPS 31.0 53.2 82.8 97.4 119.7 148.1oE-% 35.6% 29.8% 26.7% 24.7% 23.6% 23.1%v- Payout-% 30.6% 38.3% 22.6% 23.0% 20.7% 17.1%BV 8.4 6.9 6.8 8.6 7.0 5.7E 23.7 23.0 25.3 34.8 29.8 24.6


11/22

BANK OF INDIA

206

235-

14-

1M 1yr YTDsolute -14.5 -32.2 -32.2l.to Nifty -13.7 -37.1 -37.1

Current 1QFY14 4QFY1omoters 64.1 64.1 64.1I 13.2 13.6 13.5I 15.3 15.6 16.3hers 7.4 6.7 6.0

Financials Rs, Cr 2011 2012 2013 2014E 2015E

NII 7878 8313 9024 12110 11804Total Income 10519 11635 12790 16672 16366PPP 5398 6694 7458 9670 9492Net Profit 2542 2678 2749 3533 3269EPS 46.5 46.7 47.9 61.6 57.0

MP

evious Target Pricepsidehange from Previous

ANKINDIA Vs Nifty


2271804

fty

SE Symbol BANKINDIA

Most of banks especially PSUs are beaten down by the market on account of slower economic growth and stress in asset quality. But Bank of India has witnessed

improvement in asset quality in 2QFY14 as fresh slippages were down by 26%sequentially and 46% Year-on-year basis. Moreover bank reported reduction to thetune of Rs.1009 cr versus Rs.1338 cr in 1QFY14. Most of reduction was due tohigher recovery and up-gradation rather than write-off. Write-off came down sharplyfrom Rs.598 cr 1QFY14 to Rs.120 cr in 2QFY14.Inch up restructure guidance in 3QFY14

Shown Improving sign of asset quality with higher recovery and up-gradationrather than write-off

erage Daily Volume12260

arket Data



ock Performance

rget Price

Despite of improv ing fund amental f rom past two quarters , Bank of India is

tradi ng at 0.5 tim es of on e year forw ard boo k whi ch is the lowes t level in our

valuat ion param eters . We bel ieve that current level is a t t ract ive entry poi nt for the investor wi th t ime horizon m ore than one year. With the capi tal infusion of

Rs.1000 cr by GoI and imp rov ing sig n of asset quality wo uld re-rate the sto ck

in our v iew as i t p rev ious ly w i tnessed i . e . 0 .8 to 1 .2 t imes o f book . The

manag ement has guid ed fresh s l ippage of about Rs.1500 cr and restructu res

to the tun e of Rs.1000-1200 cr in 3QFY14 wh ich i s in line wit h 2QFY14. We

recomm end buy wi th p r ice t a rge t o f Rs . 235

ompany Update BUY

393/126

SE Code 532149

wk Range H/L

Capital infusion by GoI raise CAR ratio to 8.1% from 7.75%Bank has lower CAR to 7.75% at the end of 2QFY14 according to Basel 3 norm.Now Bank of India has approved to initiate process to raise further capital for issueof 4.63cr Equity Shares to GoI on Preferential basis at a price of Rs. 215.70 per share. This capital infusion is taking CAR ratio to 8.1% and government holding riseto 66.7% from 64.1%. Capital infusion to the tune of Rs.1000 cr diluting our FY14E

book value by 40 bps.

As far as restructure loan are concern, banks total restructure loan was about 5% of total loan asset and banks management expects Rs.1000-1200 cr of restructure inDecember quarter. In 2QFY14, bank sold about Rs.370 cr of bad loan to AssetReconstruction Company (ARC) for recovery and during quarters its plan to sellabout Rs.500 cr of bad loan to ARC.Sequentially improving PCR provide cushion on stress assetDespite of stable asset quality and lower slippage, Bank of India provided 24% more

provision in sequential basis which improved its provision coverage ratio(Without

technical write off) to 63.3% from 61% in preceding quarter same year. Higher

provision would provide cushion on stress asset without hurting profit going further.

6139

kt Capital (Rs Cr)

"BUY"18th Dec, 2013



12/22

BANK OF INDIA



arterly Result 2QFY14 1QFY14 2QFY13 % YoY Gr % QoQ Grerest/discount on advances / bills 6631 6190 5881 12.8 7.1

come on investments 2129 1885 1835 16.0 12.9erest on balances with Reserve Bank of India 479 465 289 65.6 2.9

hers 0 0 0 42.9 36.4tal Interest Income 9239 8541 8005 15.4 8.2hers Income 1100 1181 894 23.1 -6.8tal Income 10340 9722 8900 16.2 6.4erest on deposits 5966 5401 5154 15.8 10.5erest on RBI/Inter bank borrowings 414 296 536 -22.8 40.0hers 333 308 119 179.8 8.2erest Expended 6712 6004 5810 15.5 11.8I 2527 2537 2196 15.1 -0.4her Income 1100 1181 894 23.1 -6.8tal Income 3627 3718 3090 17.4 -2.4

mployee 897 963 700 28.2 -6.8

her Expenses 628 575 536 17.1 9.3

erating Expenses 1525 1537 1236 23.4 -0.8P( Rs Cr) 2102 2180 1854 13.4 -3.6ovisions 1232 695 1552 -20.6 77.4t Profit 622 964 302 106.0 -35.5

lance Sheet Datauity Capital 597 575 575 3.9 3.9serve & Surplus 25,686 21,774 21,774 18.0 18.0posits 432,282 332,695 332,695 29.9 29.9rrowings 41,751 29,434 29,434 41.8 41.8her liabilities and provisions 12,727 11,262 11,262 13.0 13.0tal Liability 513,042 395,739 395,739 29.6 29.6sh in hand 24,621 17,080 17,080 44.2 44.2sh and balances with reserve bank of india 34,658 19,198 19,198 80.5 80.5

vestment 107,413 90,147 90,147 19.2 19.2dvance 332,190 256,148 256,148 29.7 29.7 xed Assets 2,957 2,839 2,839 4.2 4.2hers Assets 11,203 10,327 10,327 8.5 8.5tal Assets 513,042 395,739 395,739 29.6 29.6

set QualityNPA 9873 8765 8898 11.0 12.6PA 6156 5947.3 5,228 17.7 3.5

NPA(%) 3.0 3.0 3.4PA(%) 1.9 2.0 2.0

R(%) Without technical write off 37.6 32.1 41.2


13/22

BANK OF INDIA




nancials & Assuption 2011 2012 2013 2014E 2015Eerest/discount on advances / bills 15570 20241 23139 29515 31171

come on investments 5195 7142 7261 8828 10152erest on balances with Reserve Bank of India 798 834 1257 1889 1889

hers 295 264 251 1 1tal Interest Income 21858 28481 31909 40233 43213hers Income 2642 3321 3766 4562 4562tal Income 24500 31802 35675 44795 47775erest on deposits 12218 17957 20238 25422 28709erest on RBI/Inter bank borrowings 813 1145 1489 1419 1419hers 950 1065 1158 1281 1281erest Expended 13981 20167 22885 28123 31410I 7878 8313 9024 12110 11804her Income 2642 3321 3766 4562 4562tal Income 10519 11635 12790 16672 16366

mployee 3492 3069 3131 4131 4055

her Expenses 1629 1871 2201 3965 3892erating Expenses 5121 4941 5332 7002 6874P( Rs Cr) 5398 6694 7458 9670 9492ovisions 2909 4016 4709 5254 5406t Profit 2542 2678 2749 3533 3269

46.0 5.3 2.7 28.5 -7.5y Balance Sheet Dataposits 299559 318216 381840 434075 503527posits Growth(%) 30 6 20 14 16rrowings 22021 32114 35368 36854 37953rrowings Growth(%) -2 46 10 4 3an 213708 248833 289367 347241 366720an Growth(%) 26 16 16 20 6

vestment 86677 86754 94613 110351 126904vestment Growth(%) 27 0 9 17 15

stwind Calculationeld on Advances 7.3 8.1 8.0 8.5 8.5eld on Investments 6.3 8.7 7.1 8.0 8.0eld on Funds 6.5 7.8 7.7 8.4 8.4st of deposits 4.1 5.6 5.2 5.7 5.6st of Borrowings 8.0 6.9 6.8 7.5 7.5st of fund 4.3 5.8 5.3 6.5 6.2

luationok Value 322.7 365.3 416.9 469.4 510.4

BV 1.5 1.0 0.7 0.4 0.4E 10.3 7.7 6.3 3.8 4.1


14/22

TCS

1M 1yr YTDsolute 16.6 71.8 72

l. to Nifty 12.3 64.7 64.3


16.14 16.14 14.96I 5.44 5.44 6.45hers 4.46 4.46 4.63

Financials2QFY14 1QFY14 (QoQ)-% 2QFY13 (YoY)-%

Revenue 20977.24 17987.07 16.6 15621.03 34.3EBITDA 6632.95 5144.12 28.9 4438.39 49.4PAT 4633.33 3839.5 20.7 3434.65 34.9EBITDA Margin 31.6% 28.6% 300bps 28.4% 320bpsPAT Margin 22.1% 21.3% 80bps 22.0% 10bps

1011877

E Symbol TCSwk Range H/L

Confident on IT spending: Despite furloughs impact, it remains confident of growth inthe medium term as clients were heading into their CY2014E budgeting cycle in a moreconfident position than in the past 2-3 yrs. Broadly US and Europe region will play a key

role for better demand enviromnment ahead, however domestic market could be out of race due to upcoming election.We continue to believe that TCS will be star performer in growth sense than otherpeers. Hence, we are maintaining 17% revenue growth in dollar term for FY14Ebecause of improved demand environment, while NASSCOM expects 12-14% for theIndustry. We continue to be positive on demand prospect for TCS.

"Positive commentary"

MP 2047rget Price 2550

ange from Previous 18%

arket DataE Code 532540

On the hiring front, TCS will hire about 25,000 college graduates who will join thefirm in the next fiscal. Besides, the firm will also be hiring across geographies like theUS and Europe to keep up with demand for services. During current fiscal year, TCS hasrecruited 45000 head counts so far.

Marginal Revenue growth impacted by seasonality: TCS management has indicated

that 3 rd quarter, FY14E will be slightly impacted by broad bases furloughs acrossIndustries and thin project based services. Revenue will be impacted mainly indeveloped market like US and Europe region. We expect that revenue growth could beseen at 3-3.5% for 3QFY14E.


ompany update Buy TCS on i t s managem ent Interview to Media high l ighted that

evious Target Price 2160side 25%

For earning and demand prospect, FY15 will be better than the ongoing fiscal onaccount of uptick in client spending in the US and Europe and growth in demand fortechnologies like cloud, mobility and Big Data. For next 3-5 years, momentum picking for social, mobile, analytics and cloud (SMAC)technologies could offer a "multi-billion dollar opportunity" in revenues for thecompany.

2258/1198kt Capital (Rs Crores) 400775 TCS Q3 analys t br ief ing key takeaways; Adv ersely imp acted by seasonal i ty but

no th ing u nexpec ted ,

Persistent Margin picture: The Company expects margins could be broadly stable. Thecompany would take a decision on reinvestment only after the Rupee stabilizes. Weexpect that company could maintain EBITDA margin at 30-31% during the 3rd quarter.

erage Daily Volume

year forward P/E

Rs, Cro


View and Valuation: We continue to remain positive on demand outlook and marginprofile. We continue to be positive on demand environment and companys strength oefficient deal execution. We advise that TCS now seem to be trading ahead of fundamentals; At a price of Rs 2047, it is trading at 22.6x FY14E earnings, We maintain"BUY" view on the stock with a target price of Rs 2550. Taking the INR/USD (averagevalue) at Rs60 for FY14E and Rs59.5 for FY15E, We upgrade EPS from Rs87.4 to Rs90.7for FY14E and from Rs99.3 to Rs 102.4 for FY15E. For FY14E and FY15E, we expect 17%and 20% revenue growth in USD term and retain positive stance as outperformancecontinues.

fty 6139

ock Performance

"BUY"18th Dec' 13



15/22


nancials


uarterly snapshot

TCS.


Cr FY10 FY11 FY12 FY13 FY14E FY15Et Sales-USD 6339 8187 10171 11569 13507.44 16202.45t Sales 30029.0 37325.1 48894.3 62989.5 81044.64 96404.56

mployee Cost 10879.6 13850.5 18571.9 24040.0 30796.96 37115.76erseas business expenses 4570.1 5497.7 6800.5 8701.9 10941.03 13978.66vices rendered by business associates and others 1262.0 1743.7 2391.3 3763.7 4862.68 6748.32eration and other expenses 4622.8 5054.3 6694.8 8443.9 10130.58 12532.59tal Expenses 21334.4 26146.2 34458.5 44949.6 56731.25 70375.33

ITDA 8694.6 11178.9 14435.8 18040.0 24313.39 26029.23preciation 601.8 686.2 860.9 1016.3 1268.47 1508.88

mortisation 59.1 49.1 57.1 63.7 57.54 76.73her Income 272.0 604.0 428.2 1178.2 405.22 1928.09IT 8033.7 10443.6 13517.9 16960.1 23044.92 24520.35erest Cost 16.1 26.5 22.2 48.5 48.53 48.53T 8289.6 11021.2 13923.8 18089.8 23401.61 26399.91x 1197.0 1830.8 3399.9 4014.0 5616.4 6336.0T 7092.7 9190.3 10524.0 14075.7 17785.2 20063.9T ((Reported PAT)) 7000.6 9068.6 10414.0 13917.4 17785.2 20063.9

owth-%es-USD 29.2% 24.2% 13.7% 16.8% 20.0%es 8.0% 24.3% 31.0% 28.8% 28.7% 19.0%ITDA 21.3% 28.6% 29.1% 25.0% 34.8% 7.1%

T 31.8% 29.6% 14.5% 33.7% 26.4% 12.8%rgin -%ITDA 29.0% 30.0% 29.5% 28.6% 30.0% 27.0%IT 26.8% 28.0% 27.6% 26.9% 28.4% 25.4%T 23.6% 24.6% 21.5% 22.3% 21.9% 20.8%penses on Sales-%

mployee Cost 36.2% 37.1% 38.0% 38.2% 38.0% 38.5%erseas business expenses 15.2% 14.7% 13.9% 13.8% 13.5% 14.5%vices rendered by business associates and others 4.2% 4.7% 4.9% 6.0% 6.0% 7.0%eration and other expenses 15.4% 13.5% 13.7% 13.4% 12.5% 13.0%x rate 14.4% 16.6% 24.4% 22.2% 24.0% 24.0%uation

MP 780.8 1182.5 1322.0 1563.0 2047.0 2047.0 of Share 195.7 195.7 195.7 196.0 196.0 196.0

W 18466.7 24504.8 29579.2 38645.7 49103.5 60901.0S 36.2 47.0 53.8 71.8 90.7 102.4

VPS 94.4 125.2 151.1 197.2 250.5 310.7E-% 38.4% 37.5% 35.6% 36.4% 36.2% 32.9%viden Payout ratio 28.1% 50.8% 37.5% 41.2% 41.2% 41.2%BV 8.3 9.4 8.7 7.9 8.2 6.6E 21.5 25.2 24.6 21.8 22.6 20.0

trly, 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14olume Growth 6.3% 3.2% 3.3% 5.3% 5.0% 1.3% 4.4% 6.1% 7.30%ales Growth, USD Term 4.7% 2.4% 2.4% 3.0% 4.6% 3.3% 3.1% 4.1% 5.4%ales Growth, INR Term 7.7% 13.5% 0.4% 12.1% 5.1% 2.9% 2.2% 9.5% 16.6%AT Growth, INR Term -5% 36% -7% 14% 4% 3% 2% 6% 21%BITDA Margin 29.1% 31.0% 29.6% 29.1% 28.4% 29.0% 28.1% 28.6% 31.6%AT Margin 19.8% 23.8% 22.0% 22.3% 22.0% 22.1% 22.0% 21.3% 22.1%


16/22

74

84-

14

1M 1yr YTDsolute 16.3 0.6 0.6l.to Nifty 14.1 -7.0 -7.0

Current 1QFY14 4QFY1omoters 69.3 69.3 69.3I 4.2 3.9 3.2I 12.4 12.5 13.0hers 14.2 14.3 14.6

Financials Rs, Cr

2011 2012 2013 2014E 2015ENII 3845 3902 4582 4721 5533Total Income 4770 4868 5534 6063 6875PPP 2695 2811 3357 4184 4744Net Profit 907 1109 618 1573 1977EPS 16.5 17.7 9.3 23.7 29.7

Strong performance in NII on account of lower cost of depositsock Performance During quarter UCO banks performance was better than expectation as banks N

grew by 55% YoY to Rs.1569 Cr aided by interest income growth of 5.92% andinterest expenses de-growth of 9.68%. On yearly basis credit deposits ratio declinedto 71.6% from 72.6% but loan and deposits growth of 15% and 16% supportedoverall business growth and hence margin expansion. Other income de-grew by1.6% YoY to Rs.209 cr largely due to lower treasury gain. Total income registeredgrowth of 45.1% YoY to 1779 cr.


Stable asset quality on sequentiallyIn absolute term GNPA was flat on QoQ basis and registered mere deterioration of 3% largely due to asset quality. During quarter banks reported fresh slippages wereRs.725 cr as against Rs.629 cr in 1QFY14. Out of Rs.725 cr, over Rs.400 cr slippages came from infra segment alone. In percentage term GNPA stood at 5.3%from 5.7% in 1QFY14. In absolute term provision increased by 6% QoQ taking netNPA increased to 7% QoQ. In absolute term NPA was 3.1% flat on sequential basis.Provision coverage ratio without technical write off stood at 46.6% as against 45.1%in 1QFY14 and 41.1% in 2QFY13.

CO Bank Vs Nifty



erage Daily Volume 2960821

fty 6154

SE Symbol UCOBANKwk Range H/L 86.65/46kt Capital (Rs Cr) 5561

UCO BANK

ompany Update BUY We hav e the reduce the target pric e of UCO ban k from Rs.94 to Rs. 84 on account o f banks un lik ely to get benefit of wes tern sanc tion again st Iran. Late

last month US and s ix other major powers have imp osed sanc t ion against I ran for its nuc lear deal. In ord er to qualit y for waiver sanc tion again st Iran, India has cu t back s harp ly on pu rchase o f o i l f rom I ran . UCO was the major benef ic iary o f cur ren t acco unt d epos i t s o f Ind ia -I ran o i l f ac i l i t i e s . In ou r bank ing sector cov erage univ erse, UCO banks cost of depo si ts were lowest at 6.1% whereas y ield on l oan w as 10.1% at the end of 2QFY14. Aft er this deve lopment , banks margin would be impacted and accord ingly UCO bank loses the va lua tion p remium . Al though banks management i s focus ing on o ther a rea o f g rowth l ike b ranch expans ion and c us tom er acqu is i t ion . We sl ig ht ly tweak our earnings and reduc e our book value est imate from Rs.175.5 to Rs.168.8. Now ou r revised pri ce target for the stoc k wou ld be Rs.84 whic h is 0 .5 t imes o f FY14E boo k valu e.

MP

rget Priceevious Target Pricepsidehange from Previous

arket DataSE Code 532205

"BUY"17th Dec, 2013



17/22

n balance sheet growth front, banks deposits grew by 16% YoY to Rs.1888 bnpported by current account deposits growth of 173% YoY and 12% rise in savingposits. CASA deposits registered the growth of 56% YoY to Rs.60096 cr. Inrcentage of total advances, CASA stood at 31.8% from 23.7% in 2QFY13. Growth inrrent deposits was on account of providing facilities to Indo Iran trade payments whichpresently covering 45% of oil imports from Iran and India export. Going forward 100%oil import from Iran is to be covered and further fertilizer import from Iran is also being

nsidered by Government. This facilities will generated almost about 17000-18000 cr asr management. Loan grew by 15% YoY to Rs.1352 bn.

argin improved due to higher declined of cost of deposits than loan yield

et interest margin of the bank improved by 11 bps YoY to 2.84% from 2.73% in 1QFY14e to 22% YoY declined cost of deposits to 6.09% from 7.44% in 2QFY13. Lower cost

as account of higher growth in low cost current deposits. Yield on loan (EW calculated)r the quarter stood at 10.1% from 10.1% in 1QFY14 and 10.9% in 2QFY13.anagement expects NIM of 3% at the end of year end on the back of current depositspport.

luation & Viewe have the reduce the target price of UCO bank from Rs.94 to Rs. 84 on account of nks unlikely to get benefit of western sanction against Iran. Late last month US and sixher major powers have imposed sanction against Iran for its nuclear deal. In order toality for waiver sanction against Iran, India has cut back sharply on purchase of oil fromn. UCO was the major beneficiary of current account deposits of India-Iran oil facilities.our banking sector coverage universe, UCO banks cost of deposits were lowest at

1% whereas yield on loan was 10.1% at the end of 2QFY14. After this development,nks margin would be impacted and accordingly UCO bank loses the valuationemium. Although banks management is focusing on other area of growth like branchpansion and customer acquisition. We slightly tweak our earnings and reduce our booklue estimate from Rs.175.5 to Rs.168.8. Now our revised price target for the stock

ould be Rs.84 which is 0.5 times of FY14E book value.


urrent deposits grew almost double led CASA improvement

UCO BANK

gher earnings on account of robust growth in NII, lower CI ratio and flatovisionset profit during the quarter registered growth of 286% YoY to Rs.400 cr largely due togher NII growth, lower cost income ratio and lower provision on account of stable asset

ality. Consequentially ROE and ROA improved to 17.4% and 0.88% from 4.5% and4% in 2QFY13 respectively.



18/22

UCO BANK

ndamental through graph

Source:Eastwind/Company




19/22

UCO BANK



arterly Result 2QFY14 1QFY14 2QFY13 % YoY % QoQ erest/discount on advances / bills 3396 3152 3230 5.1 7.7

come on investments 1026 968 897 14.4 5.9erest on balances with Reserve Bank of India 8 37 32 -73.7 -77.3

hers 14 49 37 -61.9 -71.6tal Interest Income 4444 4207 4196 5.9 5.6

hers Income 209 462 213 - 1.6 -54.7 tal Income 4653 4669 4409 5.6 -0.3

erest Expended 2875 2843 3183 -9.7 1.1I 1569 1364 1013 54.9 15.1

her Income 209 462 213 - 1.6 -54.7 tal Income 1779 1826 1226 45.1 -2.6

mployee 382 376 332 15.2 1.6her Expenses 230 185 180 27.7 24.2

erating Expenses 612 562 512 19.6 9.1P( Rs Cr) 1166 1264 714 63.4 -7.8

ovisions 759 741 597 27.1 2.3T 408 523 116 249.9 -22.1

x 7 12 13 -42.5 -39.0t Profit 400 511 104 285.9 -21.7

lance Sheetuity Capital 2576 2576 2488 3.5 0.0serve & Surplus 8195 7719 6644 23.3 6.2

t Worth 10770 10295 9132 17.9 4.6posits 188779 177050 162567 16.1 6.6

rrowings 6605 6462 6601 0.1 2.2her Liabilities & Provisions 6262 6566 4773 31.2 -4.6tal Liabilities 212416 200373 183073 16.0 6.0

sh & Balance with Bank 7081 7600 7585 -6.6 -6.8lance with bank & money at call 8045 8218 1957 311.1 -2.1

vestments 55193 52999 49589 11.3 4.1

dvances 135233 125141 118045 14.6 8.1xed Assets 977 926 815 19.9 5.5

her Assets 5887 5489 5082 15.8 7.2tal Assets 212416 200373 183073 16.0 6.0

set QualityNPA 7,376 7,178 5,888 25.3 2.8PA 4228 3939 3468 21.9 7.3

GNPA 5.3 5.7 5.0

NPA 3.1 3.1 2.9PCR(Without technical writeoff) 46.6 45.1 41.1


20/22

UCO BANK

Source: Company/Eastwind



come Statement 2011 2012 2013 2014E 2015Eterest Income 11371 14632 16752 20313 24333terest Expense 7526 10730 12170 15592 18800II 3845 3902 4582 4721 5533hange (%) 65.4 1.5 17.4 3.0 17.2on Interest Income 925 966 952 1342 1342otal Income 4770 4868 5534 6063 6875hange (%) 45.0 2.0 13.7 9.6 13.4perating Expenses 2075 2056 2177 1880 2131e Provision Profits 2695 2811 3357 4184 4744hange (%) 58.0 4.3 19.4 24.6 13.4ovisions 1788 1661 2710 2596 2548

BT 907 1150 647 1588 2196AT 907 1109 618 1573 1977hange (%) -10.4 22.3 -44.2 154.5 25.6

alance Sheeteposits( Rs Cr) 99071 115540 128283 153939 184727hange (%) 17 11 20 20 which CASA Dep 32031 34403 55733 67707 81249

hange (%) 6 7 62 21 20orrowings( Rs Cr) 5475 12901 9492 12315 14777vestments( Rs Cr) 42927 45771 52245 62692 75231

oans( Rs Cr) 99071 115540 128283 153939 184727hange (%) 20 17 11 20 20

atiovg. Yield on loans 8.6 9.9 10.0 10.0 10.0vg. Yield on Investments 6.6 7.1 7.1 7.5 7.5vg. Cost of Deposit 4.7 6.5 6.6 7.0 7.1vg. Cost of Borrowimgs 12.5 6.1 7.0 6.0 6.0

aluationook Value 135 137 146 169 183

MP 107 79 50.1 74.55 74.55BV 0.8 0.6 0.3 0.4 0.4


21/22

Earlier management said that company would invest 1.5 billion pounds for new technically-advanced aluminum vehicle architecture in forthcoming models. The first new model toutilize this innovative architecture will be an all-new mid-sized sports sedan from Jaguar.The product will be launched by 2015.


JLR wholly owned subsidiary of Tata Motors come up with November 2013 volume, thecompany for the month sold 37403 units up by 25% YoY. This total volume of JLR includes6244 units of Jaguar and 31159 units of Land Rover. This months performance in particular is

marked by stellar performance by Jaguar with volume growth of almost 55 % YoY while theLand Rover portfolio has grown by 20 % YoY.The new F type Jaguar is getting goodresponse.Company manage to sell 557 units of F-Type this month.


The Table shows the Performance of Land Rover Portfolio : Model Wise.



We continue to like Tata Motors, led by strong volume traction at JLR to continue over thecoming months as new Range Rover Sport get rolled out across more geographies, inaddition to continued traction from RR and F-Type, which in turn will boost realisation andmargin.

JLR VOLUME UPDATE : NOVEMBER 2013

The performance of JLR on Geography Wise has been Tabulated as under :

The various models under JLR portfolio have grown well for the company however JaguarXJmodel has done exceptionally well .The company has sold 6244 units of Jaguar for theNov2013.The Land Rover is also growing good for the company. The Range Rover Evoque hasgrown by 10% YoY to 10953 units for the month.

The Table shows the Performance of Jaguar Portfolio : Model Wise.

Strong Performance For The Month.

The volumes for JLR across geographies came relatively, good all the geographies havedone well except for UK where volume de grew by 1%YoY. The markets of china continuesto do well for the company. The Chinese market have grown over 40% YoY for the JLRfollowed by ROW markets.


Model Nov-13 Nov-12 Change % (YoY)UK 5231 5276 -1%North America 6657 4843 37%Europe 7300 6829 7%

China 9751 6879 42%Asia Pacific 1882 1428 32%All other markets 6582 4638 42%

Monthly Performance of JLR : Geography Wise

Model Nov-13 Nov-12 Change % (YoY)Defender 1615 1274 27%Freelander 4124 4517 -9%Discovery 3424 3683 -7%New Range Rover Sport 6833 0 NARange Rover Sport 106 4909 NARange Rover 2 1417 NARange Rover Evoque 10953 9919 10%New Range Rover 4102 143 NA

Monthly Performance of Land Rover: Model Wise

Model Nov-13 Nov-12 Change % (YoY)XF 3825 2743 39%

XJ 1628 1004 62%

XK 234 284 -18%

F-TYPE 557 NA

Monthly Performance of Jaguar : Model Wise


22/22

22

k Disclosure & Disclaimer: This report/message is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you.

nolia Securities Ltd. (Hereinafter referred as NSL) is not soliciting any action based upon it. This report/message is not for public distribution and has been furnished to you solely for your

rmation and should not be reproduced or redistributed to any other person in any from. The report/message is based upon publicly available information, findings of our research wing

st wind & information that we consider reliable, but we do not represent that it is accurate or complete and we do not provide any express or implied warranty of any kind, and also

e are subject to change without notice. The recipients of this report should rely on their own investigations, should use their own judgment for taking any investment decisions keeping

mind that past performance is not necessarily a guide to future performance & that the the value of any investment or income are subject to market and other risks. Further it will be safe

ssume that NSL and /or its Group or associate Companies, their Directors, affiliates and/or employees may have interests/ positions, financial or otherwise, individually or otherwise in

recommended/mentioned securities/mutual funds/ model funds and other investment products which may be added or disposed including & other mentioned in this report/message.

India Equity Analytics for today - Buy Stocks of Divi’s Laboratories and Godrej Consumer

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