Promises what is deliverable

Deficit target realistic at 3.5%, cushion from excise duty & VDIS,
BUT Telecom auction proceeds, Pay Commission partial deferrals?

Allocations increased in Rural India, Road & Rail

Housing, ease of doing business
Off-Budget pending items: Banking system revival, GST

Beneficiaries: Interest rate sensitives (Banking, Auto, Realty), Rural allocation and Pay Commission award (farm inputs, Consumer durables), Infra
Losers: Cigarettes, Upstream oil, Wind equipment, Merchant IPPs, Telecom, Jewellery
Nandan Chakraborty

MD - Institutional Equity Research

nandan.chakraborty@axiscap.in
+91 22 4325 1107

Chirag Negandhi

MD - Institutional Equity Research

chirag.negandhi@axiscap.in
+91 22 4325 1106

Sachchidanand Shukla

SVP - Economist
sachchidanand.shukla@axiscap.in
+91 22 4325 1108

29 FEB 2016

Key things to watch for in this Budget

29 FEB 2016

UNION BUDGET FY17

Fiscal discipline versus increasing spend: Given anemic conditions and broken balance sheets, higher spend unlikely to have
kickstarted growth and instead increased vulnerability to global vagaries. Arithmetic realistic, but:
Question marks: Telecom spectrum auction proceeds, Pay commission partial deferrals
Cushions: Excise duty, esp. from oil, Disclosure scheme for black money

Over to RBI to cut rates

Allocations increased: Significant amounts in Rural (MNREGS, irrigation), Roads and Rail. Significant growth in Urban infra, Power

Other key positives

distribution. Defense flattish

Mass housing boosted with selective tax breaks. REITS and Infra Investment Trusts can finally take off now
Ease of doing business: Dispute resolution e.g. renegotiation of PPP contracts, less IT authority discretion, etc. No retro tax

Expectations partially met

Not done: Banking system revival, e.g. faster NPA resolution, creation of bad bank, etc.
With only marginal increase in service tax, the GST bill seems to be relegated
And what is a little irking to the middle class: Tax on provident fund withdrawals (prospective) clarifications awaited

Beneficiaries: Interest rate sensitives (Banking, Auto, Realty), Rural allocation and Pay Commission award (farm inputs,
Consumer durables), Infra (EPC cos)

Losers: Cigarettes, Upstream oil, Wind equipment, Merchant IPPs, Telecom, Jewellery

Top buys: Reliance Inds, Infosys, HDFC Bank, ICICI, L&T, Maruti, Aurobindo, Ashok Leyland, HPCL, DLF, Tata Power
2

29 FEB 2016

Top post-budget picks

UNION BUDGET FY17

Com p a nies

M kt ca p
(USD m n)

CM P
(Rs)

Ta rg et
P rice (Rs)

Up sid e
(% )

Reliance Inds

45,719

967

1,390

44

Petchem, refining expansions, Jio launch over FY17 to drive earnings,

valuations

Infosys Tech

36,348

1,084

1,432

32

Infosys strategy to drive differentiated growth from client mining, deal wins
and AiKiDo playing out. Multiple margin levers exist

HDFC Bank

35,873

973

1,364

40

High return ratios, consistent growth rates, superior retail franchise and no
capital requirements

ICICI Bank

16,127

190

285

50

Operational efficiencies, value unlocking, possible reduction in credit cost

and attractive valuations create a favorable risk reward proposition

L&T

14,679

1,079

1,528

42

Biggest beneficiary of 26% increase in Infra capex

Maruti Suzuki

14,303

3,243

4,505

39

Macro environment conducive for MSILs volume growth. Product cycle to aid
market share gains

Aurobindo Pharma

5,595

655

940

43

Strong revenue growth/ margin expansion visibility backed by ANDA

approvals in US

Ashok Leyland

3,640

88

117

34

MHCV upcycle coincides with its internal austerity measures

HPCL

3,403

688

1,030

50

Strong marketing margins and limited private competition in auto-fuel retail

DLF

2,319

89

143

61

REITs provide an alternative avenue for asset monetization and de-leveraging

Tata Power

2,265

57

83

45

Cost rationalization at UMPP and coal mining to sustain margins. Trading at

operating cash flow yield of 14%

Ra tiona le

Source: Axis Capital

29 FEB 2016

Fiscal math looks more realistic

UNION BUDGET FY17

(R s b n)
Gro ss T ax R ev enue

F Y16
BE

F Y16
RE

14 , 4 95

14 , 596

Corporation tax
Income tax

4,706
3,274

4,530
2,991

Excise duty

2,298

2,841

Customs duty
2,083
2,095
Service tax
2,098
2,100
Dev o l v ement to S tates
5, 296
5, 121
& Unio n T errito ries
Net tax rev enues
9, 198
9, 4 75
Non tax revenues (incl
2,217
2,586
dividend, interest, etc)
Non-debt capital receipts
803
442
(incl divestment)
No n p l an rev .
12, 060 12, 127
exp enditure
Interest
4,561
4,426
Defense
1,521
1,432
S ub sidies

Varianc e C hg Yo Y
16R E/
16R E/
16BE (% ) 15R E (% )

F Y17
BE

C hg Yo Y Ab s C hg Yo Y
F Y17BE/
F Y17BE v s.
F Y16 R E (% )
F Y16 R E

17

16, 309

12

1, 713

(4)
(9)

6
13

4,939
3,532

9
18

410
541

24

50

3,187

12

345

1
0

11
25

2,300
2,310

10
10

205
210

(3)

50

5, 768

13

64 7

10, 54 1

11

1, 066

17

31

3,229

25

643

(45)

(14)

671

52

229

1, 14 7

(3)
(6)

10
5

11
14

501
195

(0)

(3)

(74 )

(10)

1,006

51

13, 274
4,927
1,628

2, 4 38

2, 578

1,062

955

Pl an Exp enditure

4 , 653

4 , 772

5, 500

15

728

T o tal Exp enditure

17, 775

17, 854

19, 780

11

1, 926

Non plan capital

expenditure

Fiscal deficit
F isc al % o f GDP

(5,556)
(3. 9)

(5,351)
(3. 9)

2, 504

(5,339)
(3. 5)

C o mments
Bro adl y rev enues l o o k real istic and in sync with no m. GDP
gro wth
Income tax assumptions building in 7th pay comm award
New cesses (clean, Infra) & Sizeable buffer as, even with status quo,
incremental excise from auto fuels = ~Rs 580 bn
New cesses levied taking the effective rate to ~15.1%

Net rev enue gro wth in l ine with no m. GDP gro wth
Of the telecom receipts of ~ Rs 1 trn, spectrum auction proceeds
appear aggressive
Divestment fig of Rs 360 bn + 205 bn from strategic stake sale & SUUTI

Int cost still elevated needs to be pruned down

Desp ite sharp fal l in inp ut c o sts, F o o d & fertil iser sub sidies
l argel y fl at
Largely defence
Pl an c ap ex fl attish at R s 1. 4 trn & entire rise o wes to Pl an
rev enue exp
Pay c o mmissio n & Defenc e Pensio ns p ro v ided fo r b ut so me
deferral o f Pay C o mm award ie fo r al l o wnac es etc

Nominal GDP growth of ~11% hinges on WPI normalization and normal monsoon. Govt revenue spending
increase of just 9% YoY may continue to require hand of god (read low oil prices)
4

29 FEB 2016

Bond market rebellion likely to subside

UNION BUDGET FY17

System liquidity: Demand-supply dynamics
F Y17BE

Demand fo r funds

Net Mkt borrowing

3,000

2,589

2,900

1,800

1,944

2,138

1,000

MFs, PFs & FIIs

1,000

1,200

1,416

Availability for govt

5,460

5,733

6,454

(750)

(1,431)

(564)

(88)

(85)

(79)

0.4
0.0

2017

2,404

Insurance

Net differenc e

0.8

2,000

Bank SLR

Key assump tio ns

Net govt borr as % fiscal deficit

Seventh Pay Commission award impact

F Y17
(R s b n)
Salaries

F isc al

W/o Pay C o mm With Pay C o mm

imp ac t

% of

c hg F Y17 GDP

2,443

2,834

391

16

0.26%

1,240

2,960

172

139

0.11%

990

990

0.00%

Others

2,430

3,640

121

50

0.08%

Pension

1,426

1,763

337

24

0.22%

8, 529

12, 187

1, 021

24

0. 68%

Al l o wanc es
HRA
Travelling

T o tal

Source: Axis Capital

1.6
1.2

2016

S o urc e o f funds

4,000

2015

7,018

2014

7,164

2013

6,210

(%)

(Rs bn)

2009

Total govt requirement

5,000

2008

2,800

2007

2,600

2006

1,600

2005

State govt borrowings

2004

4,218

2003

4,564

2002

4,469

2001

Net Govt borrowings

Borrowing vs incr credit (RHS)

2012

F Y16 BE

2011

F Y15 R E

2010

Partic ul ars

Net borrowings contained at just <80% of fiscal deficit

29 FEB 2016

Infra: Increased allocations

UNION BUDGET FY17

Capex for key schemes
G rowth YoY (% )

Revised vs
(Rs b n)

FY15

FY16 B E

FY16 RE

B u d g eted

FY17 B E

FY16

FY17

Defence

820

946

814

(14)

863

(1)

Railways

643

984

975

(1)

1,210

52

24

61

84

93

11

100

52

Roads (MORTH)

274

429

443

550

61

24

Rural Roads (PMGSY)

142

143

183

28

190

29

Rural Housing (PMAY)

111

100

100

150

(10)

50

Urban Infra (AMRUT, Smart cities, Swachh

Bharat, Namami Gange)

43

132

75

(43)

172

75

129

Renewable Energy

20

25

40

57

45

104

13

10

67

55

59

449

34

45

45

30

33

(33)

2,154

2,894

2,778

(4)

3,365

29

21

34

29

Metro (Under Min. of Urban Development)

Urban T&D (Int. Power Development Scheme)

Rural Electrification (DDUGJY)
Tota l b u d g et a lloca tion
Growth (%)

21

Source: Budget documents

Increased budget allocation driven by roads, railway, urban infra and electrification projects
6

Sectoral impact: Summary

29 FEB 2016

UNION BUDGET FY17

Sector

Key budget measures

Impact

Allocation to irrigation tripled to Rs 170 bn in FY17 vs. Rs 53 bn in

FY16. Total irrigation allocation at Rs 865 bn over next 5 yrs (vs. Rs
500 bn earlier)
Agriculture

Higher farm income: Target to double farm income by 2022. Crop

insurance, interest subvention, MGNREGS allocation and 15% YoY
growth in agri-credit

Positive for all agri-input

companies

Rural infrastructure: Continued focus on rural roads (allocation up ~2x

from FY13/14 levels) and a common e-market platform to cover 585
APMCs across India

Autos

Pro rural measures to improve farm productivity and spur rural

income growth

Road (urban + rural) capex to increase by ~50% to Rs 1.3 trn

Positive: Ashok Leyland,

Tata Motors

Infra cess (wef 1st March 16) of 1-4% on PVs to increase cost of
ownership

Neutral: M&M

Defense outlay for MHCVs increased by >75%

Negative: Maruti

Deduction on R&D expenditure reduced: effect on M&M and TAMO

Sectoral impact: Summary

29 FEB 2016

UNION BUDGET FY17

Sector

Key budget measures

Impact

Recapitalization of PSU banks (Rs 250 bn provided, for now)

Roadmap for consolidation of weaker PSU banks and privatization of
IDBI Bank

Banking and Financial

Services

Addressing asset quality issues propose insolvency and bankruptcy

code and incentivize investment in ARCs. Boost financial position of
ARCs by allowing 100% FDI under automatic route, increase FPIs
investment to 100% in Security Receipts (SR), complete pass through of
income-tax to investors in SR
Exemption of tax on NPA provisions for NBFCs (up to 5% of income)
Encouraging affordable housing by increasing tax exemption on
interest paid

Positive for Corporate

Lenders and HFCs
Expect interest rate cut by
regulator
Small ticket-size HFCs to
benefit

49% FDI in insurance and pension sector via automatic route

Plan to list PSU general insurance companies divestment

Cement

Demand boost from ~50% increase in road and rural housing spending

Positive: Volume growth

Sectoral impact: Summary

29 FEB 2016

UNION BUDGET FY17

Sector

Key budget measures

Budgetary allocation towards capex up by 21%: Bulk of the increase in
railways (up 24%) and roads (up 24%)

Capital goods

Push on metro rail projects and urban infra : 5 new metro projects to be
awarded in FY17. Allocation for urban infra projects up by 129%
Defense capex the only disappointment: FY16 capex 14% below budget
allocation, and a paltry 6% increase in FY17 allocation
Wind equipment: Reduction in accelerated depreciation to 40% from
80% from FY18

FMCG

Excise duty on cigarettes hiked by weighted average ~10%. We estimate

ITC cigarette volume to decline by 5% in FY17
Increased investment on the rural side in the form of various schemes and
increased MNREGA investment to aid FMCG companies

Increased funds for Roads and Railways

Infrastructure

Sunset clause on tax breaks is not a major concern

Measures to revitalize PPP

Impact
Positive for L&T, ABB,
Siemens, etc. and EPC
companies
Negative for Inox Wind,
BEL: We cut our TP for
Inox Wind to Rs 296
(vs. Rs 370 earlier) and
BEL to Rs 1,178 (vs. Rs
1,326 earlier)
Negative for ITC. FY17
volume to decline by 5%
resulting in 4%/5% cut in
EPS/TP (PE of 23x vs. 24x)
Positive for all Consumer
companies

Positive for all EPC

companies

Sectoral impact: Summary

29 FEB 2016

UNION BUDGET FY17

Sector

Logistics

Key budget measures

Reintroduction of 70% abatement on service tax on Indian
Railways' haulage charges (effective service tax at 4.2% now
vs. 14% earlier)
Reduction in abatement rate to 60% vs. 70% earlier for
Container Train Operators - effective service tax increased to
5.6% (with input service credit) vs. 4.2% (without credit) earlier

Doubling of clean energy cess to Rs 400/t

Metals

Increase in import duty on aluminium to 7.5% vs.

5% currently
Cut in export duty on low grade iron ore to nil (currently at 10%
for fines and 30% for lumps). Duty on high-grade ore however
retained at 30%

Impact

Positive for Container Train

Operators like Concor and
Gateway Distriparks

Neutral for Coal India, as higher

cess will be passed on to
consumers
Neutral for Hindalco, Vedanta and
NALCO. Positive impact of higher
duty offset by increased coal cost
Marginally positive for Vedanta
(increases feasibility of iron ore
exports from Goa). No impact on
NMDC (high grade mines)

10

Sectoral impact: Summary

29 FEB 2016

UNION BUDGET FY17

Sector

Key budget measures

Change in cess rate for E&P companies from Rs 4,500/te (USD 9.4/bl)
to 20% ad-valorem (USD 9/bl at crude price of USD 45/bl)

No change in custom duty structure on crude and petroleum products

Oil & Gas

Pharma

FY17 budget provides for incremental revenue of Rs 210 bn from excise

duty for petrol/diesel. This is lower than estimated incremental revenue
of Rs 580 bn assuming flat excise duties. Thus, the government has kept
adequate buffer to reduce excise in future (if crude rises)

R&D exemption limit to be lowered from 200% to 150% from 1 April,

2017 to 31 March, 2020 and to 100% from 1 April, 2020

Clean Energy Cess on coal increased to Rs 400/ton from Rs 200/ton:

Encouraging structural shift to renewables
Power

Introduction of dispute resolution bill and guidelines for renegotiation

of PPP concession agreement could revive private investment in Infra
but the bill will need to be passed in both houses of Parliament

Impact
Negative: for upstream cos
due to weak crude
environment. Street was
expecting ~10% ad-valorem
duty. Upstream EPS estimates
cut by 15-20% and TP by
~10%
Positive for OMCs as customs
duty hike would have
impacted GRMs
Marginally negative for
companies with tax rates
higher than MAT

Negative for IPPs selling

power on merchant basis
such as Adani Power,
JSW Energy, JSPL etc.
Neutral for NTPC,
Tata Power as pass-through

11

Sectoral impact: Summary

29 FEB 2016

UNION BUDGET FY17

Sector

Key budget measures

Hurdle for REITs cleared: No DDT on dividend payment from SPV to REIT
Realty

Multiple impetus for affordable housing to both buyers and developers

Phasing out tax benefits on SEZs

Retail

Excise duty on branded readymade garments of retail sales price of

Rs1,000 or more to attract duty at 2% (with credit)/12.5% (without
credit). We expect this would be marginally negative for SHOP and
ARVND, as it will be passed on to consumers
1% (without input tax credit) or 12.5% (with input tax credit) on gold and
studded jewellery. Negative for jewellery companies like Titan

Impact
Positive: for annuity assets
owners (DLF, Phoenix,
Prestige, Oberoi).
Affordable housing sops
beneficial for developers
with strong execution track
record (Godrej, Prestige,
Sobha)

Negative for Jewellery

companies (Titan)
Marginally negative for
Apparel companies (SHOP
and ARVND)

12

Sectoral Impact Table of Contents

29 FEB 2016

UNION BUDGET FY17

Page

Agriculture

Auto

15-16

Capital Goods

17-18

Commodities

19-20

Financials

21-23

FMCG

Infrastructure

Oil & Gas

27

Pharmaceuticals

28

Power

29

Real Estate

Retail

32

Telecom

33

Axis Capital Valuation

14

24
25-26

30-31

34-40

13

29 FEB 2016

Agriculture

UNION BUDGET FY17

Item

Current status

Budget proposals

Impact

Irrigation

Budget allocation

Allocation to irrigation projects at Rs 170 bn (including

Positive especially for

irrigation companies;
also positive for entire
agri-input industry

Higher farm

Second successive

Farm income to double by 2022

MGNREGS allocation at Rs 385 bn (Rs 400 bn in FY16)

Positive for farm income,

and entire agri-input
industry

Allocation to rural road infrastructure under Pradhan

Robust rural infra will

facilitate trade of agriproduce across markets

income

Rural

infrastructure

Fertilizer

subsidy

of Rs 53 bn

year of poor
rainfall led to cash
flow issues for
farmers

Allocation to rural

road at Rs 183 bn
in FY16RE (Rs 90
bn during
FY13/14)

Rs 724 bn in

FY16RE

Rs 125 bn for Pradhan Mantri Krishi Sinchai Yojana) in

FY17 vs. Rs 53 bn in FY16
Total irrigation allocation at Rs 865 bn over next 5 yrs
(vs. Rs 500 bn earlier)
Long Term Irrigation Fund with corpus of Rs 200 bn

higher rural income and lower crop cultivation costs

Crop Insurance Scheme allocation at Rs 55 bn
Interest subvention of Rs 150 bn to reduce burden of
loan repayment
Agri credit target at Rs 9 tn (vs. Rs 8.5 tn in FY16)

Mantri Gram Sadak Yojana (PMGSY) at Rs 190 bn.

Including state contribution, total allocation at Rs 270 bn

APMC overhaul: Unified Agriculture Marketing Scheme
to create a common e-market to cover 585 APMCs.
Amendments in APMC Acts also encouraged
Despite sharp reduction in input costs, fertilizer subsidy

allocation remained flat at Rs 700 bn, giving adequate

buffer against any adverse movement

Positive for fertilizer

companies

Thrust on irrigation and improving farm income augurs well for agri-input industry
14

29 FEB 2016

Auto

UNION BUDGET FY17

Item

Current status

Budget proposals

Impact

Road construction

Allocation towards road

Increased allocation to

Positive for CV demand, esp.

tippers; Ashok Leyland is a
dominant player

Pro rural measures to

Slowdown in rural income

Allocation to MNREGA at

Positive for tractors (aids farm

mechanization) and 2Ws
(supports rural wages)

Infra cess (wef 1st

1% on small petrol (<4m length;

Negative for car/UV demand.

Likely to be passed on by
OEMs

improve farm
productivity,
income levels

March 16) on all

PVs

construction activity was

Rs 910 bn

lower crop prices,

MNREGA spend

Rs 1,333 bn (up ~50% YoY)

Rs 390 bn. Also announced a host

of measures to improve farm
productivity/income (irrigation
fund, crop insurance, etc)

<1,200cc); 2.5% on small diesel

(<4m length; <1,500cc); 4% on
SUVs/cars >4m. Taxis,
3Ws exempted

Pro-rural budget is positive for Autos, albeit expected. Infra cess was an unexpected dampener
15

29 FEB 2016

Auto

UNION BUDGET FY17

Item

Current status

Budget proposals

Impact

Defense outlay for

Current year spend was

MHCV procurement, outlay

Positive for players with

defense exposure, especially
Ashok Leyland

Weighted average

Expenditure eligible for

For FY17, R&D allowance

Negative for car OEMs for

Tata Motors/M&M, R&D is
~5%/3% of sales

MHCVs procurement

deduction on R&D
expenditure reduced

Rs 20.3 bn

125%/175%/200%
deduction

increased 75% YoY to Rs 35.5 bn

reduced to 100%/150%/150%
and to 100% from FY20

16

29 FEB 2016

Capital Goods

UNION BUDGET FY17

Item

Current status

Budget proposals

Impact

Road capex (Urban

Rs 906 bn in FY16

Increased by 47% to Rs 1.33 trn

Positive for EPC companies like

L&T, Sadbhav, etc.

Railway capex

Rs 975 bn in FY16

Increased by 24% to Rs 1,210

Positive for L&T, ABB, Siemens,

etc.

Metro capex

Rs 93 bn in FY16

Increased by 8% to Rs 100 bn

Positive for L&T, ABB, Siemens,

etc.

Defense outlay

Rs 814 bn in FY16

Modest increase of 6% to Rs 863

Negative for BEL, BEML etc.

Capex for urban

Rs 75 bn in FY16

Increased by 129% to Rs 172 bn

Positive for ABB, Siemens, VA

Tech, Schneider etc.

+ Rural + NHAI)

Infrastructure

boosted by higher NHAI capex

bn

bn after 14% shortfall in FY16

from budgeted estimates

Increased outlay for roads and railways positive for L&T, ABB, Siemens and EPC companies
17

29 FEB 2016

Capital Goods

UNION BUDGET FY17

Budgetary allocation towards key schemes
G rowth YoY (% )

Revised vs
(Rs b n)

FY15

FY16 B .E.

FY16 R.E.

B u d g eted

FY17 B .E.

FY16

FY17

Defence

820

946

814

(14)

863

(1)

Railways

643

984

975

(1)

1,210

52

24

61

84

93

11

100

52

Roads (MORTH)

274

429

443

550

61

24

Rural Roads (PMGSY)

142

143

183

28

190

29

Rural Housing (PMAY)

111

100

100

150

(10)

50

Urban Infra (AMRUT, Smart cities, Swachh

Bharat, Namami Gange)

43

132

75

(43)

172

75

129

Renewable Energy

20

25

40

57

45

104

13

10

67

55

59

449

34

45

45

30

33

(33)

2,154

2,894

2,778

(4)

3,365

29

21

34

29

Metro (Under Min. of Urban Development)

Urban T&D (Int. Power Development Scheme)

Rural Electrification (DDUGJY)
Tota l b u d g et a lloca tion
Growth (%)

21

Tota l ca p ita l exp end itu re inclu d ing centra l P SU ca p ex throu g h interna l a nd extra b u d g etory su p p ort
Roads (Urban + Rural)

450

999

906

Railways (incl. Metro)

704

1,068

Power (Genration, T&D)

599

635

Others

973
2,727

Tota l Ca p ex

(9)

1,333

101

47

1,068

1,310

52

23

697

10

783

16

12

1,178

989

(16)

1,185

20

3,880

3,660

(6)

4,611

34

26

Source: Budget documents

Increased budget allocation driven by roads, railway, urban infra and electrification projects
18

29 FEB 2016

Commodities

UNION BUDGET FY17

Sector

Cement

Item

Current status

Budget proposals

Impact

Infra spending

Additional push on

Positive: Industry to benefit

from volume growth. Demand
growth is currently impacted
by slowdown in housing
demand and subdued infra
spending

Clean environment

Rs 200/t

Rs 400/t

Marginally negative: Impact

of Rs 10-30/ton of cement

Excise duty on RMC

12.5%

Nil duty for RMC

Positive for cement companies

with large RMC capacity
(ACC, UltraTech and Prism)

cess on coal

(Ready Mixed
Concrete)

roads and rural

housing. Road capex
estimated to increase
47% to Rs 1.3 tn

manufactured at
construction site

Cement demand boost from ~50% increase in road and rural housing spending
19

29 FEB 2016

Commodities

UNION BUDGET FY17

Sector

Item

Current status

Budget proposals

Impact

Clean environment

Rs 200/t

Rs 400/t

Neutral for Coal India, as

higher cess will be passed on
to consumers. Low-grade
volumes could however see
some negative impact

Import duty on

5%

7.5%

Neutral for Hindalco, Vedanta

and NALCO. Positive impact
of higher import duty offset by
higher coal cost (due to
increased cess)

Export duty on

Export duty on low

Nil export duty on

Marginally positive for

Vedanta (increases feasibility
of iron ore exports from Goa
low grade ore). No impact
on NMDC (high grade mines)

cess on coal

aluminium

Metals

low-grade iron ore

grade iron ore (Fe <

58%) fines is 10%,
while for lumps it
is 30%

low-grade iron ore

Duty on high-grade
however retained
at 30%

Budget was somewhat a non-event as only marginal tariff changes for metals
20

29 FEB 2016

Financials

UNION BUDGET FY17

Sector

Item

Current status

Budget proposals

Impact

PSU bank

Rs 700 bn

Allocated Rs 250 bn for

Neutral: Govt has committed to

provide more capital as needed

reforms:
- Capital
infusion
- Consolidation
- Privatization

committed
over 4 years
At least 51%
holding in PSBs

recapitalization in FY17
Roadmap for consolidation
of weaker PSBs
Reduction of stake in IDBI
Bank below 50%

Positive: Renegotiation of PPAs

allowed, will reduce pressure on
power producers/ NPAs
Major positive for IDBI Bank

Asset quality

Insolvency and

Comprehensive code on

Positive for banks especially

corporate lenders

Asset

74% FDI allowed in

100% FDI under automatic

Positive for banks especially

corporate lenders
Incentivizes investments in
ARCs, which will help in
boosting their financial
positions (can buy out
more NPAs)

resolution

Bankruptcy code

Banks

Reconstruction
Companies (ARC)

ARCs
No 100%
automatic
investments in
Security Receipts
allowed for FPIs

resolution of financial firms

to be introduced
Will provide a specialized
resolution mechanism to deal
with bankruptcy situations
route allowed
Permitted FPIs to invest in SRs
up to 100% under automatic
route
Complete pass through of
income-tax to investors in SRs

Status quo on recapitalization; visible steps on resolving asset quality pain

21

29 FEB 2016

Financials

UNION BUDGET FY17

Sector

Item

Current status

Budget proposals

Impact

Exemption of tax on

NA

Deduction of 5% of income in

Positive
Exemption to boost
return ratios

Affordable housing

Interest benefit of

Additional interest benefit of

Positive
HFCs focused on
affordable housing
& small-ticket size
(LICHF, DHFL, Repco,
Gruh)

NPA provisions

NBFCs

Rs 200,000 for
self-occupied house

respect of provision for bad

debts

Rs 50,000 on loans up to
Rs 3.5 mn for first time home
buyers (house value
< Rs 5 mn)

22

29 FEB 2016

Financials

UNION BUDGET FY17

Sector

Item

Current status

Budget proposals

Impact

Listing of public sector

No listed public

PSU general insurance

Positive
Will help in disinvestment
targets and free up resources
for redeployment

Investment up to 49%

Allowed only with

Allowed under

Positive
Stake sale/capital raising by
insurers becomes less
cumbersome

Single premium

Service tax

Reduced service tax to

Neutral
Efficient pricing for single
premium policies as benefits
passed on and relatively small
share of business

general insurance
companies

Insurance

in Insurance
companies

annuity insurance
policies

general insurer

FIPB approval

@ 3.5% of the
premiums paid

cos. to be listed

automatic route

1.4% of the premiums

paid

PSU general insurance companies to go public

23

29 FEB 2016

FMCG

UNION BUDGET FY17

Item

Current status

Budget proposals

Impact

Excise duty on

Length-based

10% weighted average increase for

Negative for ITC and other cigarette

players. However, hike is lower
than >15% hike in past four years.
We estimate ITC cigarette volume to
decline by 5% (vs. earlier est. of flat
growth) in FY17

Investments in Rural

Various schemes

Allocations focused on rural infra, rurban

Positive for all Consumer companies

cigarettes

specific duty
structure of
excise for
cigarettes

are under
implementation

cigarettes portfolio of ITC

cluster development, doubling farmer

income by 2022 and increased MNREGA
investment (Rs 385 bn, highest ever)

Except cigarettes (ITC), Budget proposals positive for most consumer companies
24

29 FEB 2016

Infrastructure

UNION BUDGET FY17

Item

Current status

Budget proposals

Impact

Increased

FY16 RE

FY17 allocation up 35% (Rs 2,543 bn)

Road: Rs 1,333 bn (up 47%)
Rail: Rs 1,210 bn (up 24%)

Positive for EPC players with strong balance

sheets

allocation for
road & rail

allocation at
Rs 1,881 bn

Higher allocation signals govts

commitment for continued capex in
road and rail
10 AA

10 years of tax

No deduction available to units

Marginally negative for Mundra as it

takes away tax incentive for incremental
manufacturing capacity and may be a
dampener for SEZ land monetization
post FY20 (Note: SEZ is ~12% of our TP
for ADSEZ)

Revitalization

PPP fraught

Resolution of dispute bill to be

Positive for all BOT players

of PPP

exemption
(MAT
applicable)

with
uncertainty

commencing construction after 1 Apr 20

introduced in FY17
Guidelines for re-negotiating PPP
New credit rating system for
infra projects

25

29 FEB 2016

Infrastructure

UNION BUDGET FY17

Item

Current status

Budget proposals

Impact

80 IA

10 years of tax

No deductions if activity

No impact on BOT players/ Mundra. Current

operational/ under construction projects are out of
ambit of revised law.

exemption
(MAT
applicable)

commences post 1 Apr 17

BOT: For projects yet to be bid, companies will

factor in revised norms and bid accordingly
Mundra: Revised law to impact future capex
only. Note: Current utilization is ~50%, hence
no immediate capex likely

Higher budgetary allocation the key positive; sunset clause on tax breaks not a major concern
26

29 FEB 2016

Oil & Gas

UNION BUDGET FY17

Item

Current status

Budget proposals

Impact

Change in cess rate

E&P companies required to

Change in cess rate for

Negative for ONGC, Oil India

and Cairn

Import duties for

Import duty on crude is nil

No change in import duty

Negative for ONGC, Oil India

and Cairn
Positive for OMCs (BPCL, HPCL
and IOC) as imposition of custom
would have impacted GRMs

Excise duty on auto

At current excise rates,

Budget has provided for

Positive for OMCs, as

government has sufficient
headroom to reduce excise duty

Gas pricing for

No policy for gas pricing

Government is considering

Marginally positive for ONGC,

GSPC and RIL

for E&P companies

crude and
petroleum products

fuels

Deep/ Ultra-Deep
gas fields

pay cess at Rs 4,500/tonne

and 2.5% for petrol/diesel

government would mop up

additional Rs 580 bn

upstream companies to 20% advalorem

structure for oil and petroleum

products (expectation was 5%
duty on crude oil and similar
increase on products)

additional mop up of Rs 210 bn

Hence buffer of Rs 370 bn
available

calibrated pricing freedom for

Deep and Ultra-Deepwater gas
fields. Gas pricing will be linked
to imported LNG

Upstream prospects impacted due to higher cess; no customs duty is a huge positive for OMCs
27

29 FEB 2016

Pharmaceuticals

UNION BUDGET FY17

Item

Current status

Budget proposal

Impact

Benefits of deduction for

200%

To be restricted to 150% from

Marginally negative for

companies having tax rates
higher than MAT (Minimum
Alternate Tax). Eg: Lupin,
Aurobindo, IPCA

Opening of additional

137 existing stores

To open 3,000 additional

Marginally negative for

domestic pharma marketing
companies as may impact
prescription (Rx) volumes

Special provision for

Profit-linked deductions

No deduction shall be
available to units commencing
manufacture/ production of
articles/things and services
provided on or after
1 April, 2020

Marginally negative for

companies planning to set up
projects in SEZs for tax
exemption as sunset clause
imposed

expenditure on scientific
research

stores under Jan Aushadhi

Yojana during 2016-17

newly established SEZ

(Special Economic Zone)

available for units in SEZ for

profit derived from export of
articles or things or services

1 April, 2017 to 31 March,

2020 and to 100% from
1 April, 2020

stores

28

29 FEB 2016

Power

UNION BUDGET FY17

Item

Current status

Budget proposals

Impact

Clean environment

Rs 200/ton

Rs 400/ton

Negative for IPPs selling power

merchant basis such as
Adani Power, JSW Energy,
JSPL etc.

cess

Neutral for NTPC, Tata Power

Power T&D

~ Rs 55 bn spent on such

~Rs 85 bn to be spent

Positive for power gencos as

higher capex helps reduce T&D
losses and would raise buying
power of SEBs

Tax holiday under

Available for plants

No change

Neutral for NTPC, MHPC,

PGCIL; higher tax will be pass
through. Other IPPs under our
coverage have completed
capex

expenditure

Sec 80-IA

schemes in FY16

commissioned till Mar-17

Continuous coal cess hikes suggest govt intent to promote renewables

29

29 FEB 2016

Real Estate

UNION BUDGET FY17

Item

Current status

Budget proposals

Impact

Clearing tax hurdles

Issue of tax leakage still exists

DDT exemption on dividend

Positive: for all asset

Impetus to affordable

1% interest subvention on

Additional interest deduction of

Positive: for developers

for REITs

housing

making yields unattractive

home loans of up to Rs 2.5 mn

for homes up to Rs 4 mn

payment from SPV to REIT to

make yields more attractive for
investors

Rs 50,000 p.a. (over current

limit of Rs 0.2 mn) for loans up
to Rs 3.5 mn for 1st time buyers,
where ticket size up to Rs 5 mn
100% deduction of profits for
developers of low cost housing.
MAT will apply
Interest deduction period prior
to delivery of the property
increased from 3 to 5 years
Service tax exemption (5.6%
earlier) on construction of
affordable houses up to 60
sq.m under govt/ PPP schemes

owners such as DLF,

Phoenix, Prestige, Oberoi

with strong execution skills

who can undertake mass
housing projects
(Godrej Properties,
Prestige, Sobha, etc) as
well as peripheral land
owners who can now
partner with these
developers to monetize
their lands

30

29 FEB 2016

Real Estate

UNION BUDGET FY17

Item

Current status

Budget proposals

Impact

Phasing out tax

Both developers and unit

Units: No deductions to units in

Negative: Expect several

SEZs to be de-notified
going ahead

benefits on SEZs

Excise duty

exemption on Ready
Mix Concrete

holders enjoying tax

exemption for a period of 10
years out of a block of 15
years
(MAT applicable)

Excise duty applicable at

12.5%

SEZs commencing operations

on or after 1st Apr20

Developers: No deductions for

developers of SEZs if
construction commences on or
after 1st Apr17

No excise duty

Marginally positive: for all

developers

REITs to benefit annuity asset owners (DLF, Prestige, Phoenix, Oberoi, etc)
Affordable housing sops to incentivize developers with strong execution (Godrej, Prestige, etc)
31

29 FEB 2016

Retail

UNION BUDGET FY17

Item

Current status

Budget proposals

Impact

Excise duty rate for

Nil duty rate

Excise duty on branded readymade

Marginally negative for branded

readymade garment players like
SHOP and ARVND, as it will be
passed on to consumers

Jewellery

Nil duty rate

1% (without input tax credit) or 12.5%

Negative for jewellery players like

Titan Company. While it will be
passed on to the consumers, gap
between unorganized and organized
increases, given existing 10% custom
duty and 1% VAT in many states

Excise duty on

Attracts

Excise rate reduced to 6%

Marginally positive for footwear

players like BATA

Excise abatement

25% of retail

Abatement rate for retail sales price (RSP) for

Marginally positive for footwear

players like BATA

branded
readymade
garments

companies

rubber sheets &

resin rubber sheets
for soles and heels

for footwear

12.5%
excise rate

sales price

garments of retail sale price of Rs1,000 or

more will be charged at to 2% (without input
tax credit) or 12.5% (with input tax credit)

(with input tax credit) on gold and studded

jewellery

the purpose of RSP-based assessment of

excise duty for all categories of footwear
increased to 30%

Marginally positive for footwear companies and negative for jewellery & readymade garment manufacturers
32

29 FEB 2016

Telecom

UNION BUDGET FY17

Item

Current status

Budget proposals

Impact

Spectrum auctions

Realization was ~ Rs 1,100 bn in

Budgeted receipts at ~

Negative as this will add

Spectrum fee will be

An accounting clarification

March15 and ~ Rs 610 bn in

Feb14 auctions. Govt had eased
payment terms with upfront
payment being 25%/ 33% and
balance in 10 equal installments
after 2 years moratorium

Clarification on

amortization policy
for spectrum fee

transfer of right to
use spectrum

equipment namely
VoIP phones, media
gateways etc and
LTE Products

additional burden on leveraged

balance sheets of telecom
operators. Net debt: equity of
Bharti Airtel was 0.83x and
Idea Cellular was 1.5x as on
Q3FY16

allowed as deduction
under Section 35ABA

Services tax on

Specified telecom

Rs 990 bn imply govts

expected proceeds
from spectrum auctions
is too optimistic

Such transactions

Neutral as price of traded

10%

No major impact as capex will

would attract service

tax

Nil BCD (basis customs duty)

spectrum will factor in the

impact

be impacted only marginally

Govts expectation from spectrum auctions too optimistic

33

Axis Capital valuation

Note
1) * EPS & BV are for core business while target price includes value of investments
Source: Bloomberg, Axis Capital

29 FEB 2016

Axis Capital valuation

UNION BUDGET FY17

M cap
C M P V oI (Rs)*
TP U p si de
FDE P S (Rs)
Se ct or / C om p an y
(U SD m n )
(Rs)
FY 1 6 E
(Rs)
(% ) FY 1 5 FY 1 6 E FY 1 7 E
A u t os
Amara Raja Batteries
2,126
852
0
828
(3)
24
30
41
Ashok Leyland
3,640
88
0
117
34
1
4
7
Bajaj Auto
9,297 2,200
0 2,415
10
108
125
145
Balkrishna Industries
806
571
0
730
28
50
57
59
Bharat Forge
2,537
746
0
822
10
31
33
41
Eicher Motors
7,494 18,895
0 20,178
7
227
419
656
Exide Inds
1,589
128
0
140
9
6
7
8
Hero MotoCorp
7,288 2,500
0 2,667
7
128
161
177
Mah & Mah
11,126 1,227
326 1,287
5
47
57
74
Maruti Suzuki
14,303 3,243
0 4,505
39
131
174
214
Motherson Sumi
4,361
226
0
262
16
7
10
13
Suprajit Engg
246
128
0
174
36
4
7
10
Tata Motors
14,396
300
0
442
47
54
45
56
TVS Motor
1,857
268
0
282
5
8
10
18
A dj B V (I NR)
B an ki n g & Fi n Se r v
Axis Bank
13,044
375
0
NR
185
Bajaj Finance
4,663 5,927
0 6,500
10
941 1,367 1,700
Bajaj Finserv
3,742 1,610
0 1,950
21
Bank of Baroda
4,441
132
0
135
2
156
109
123
Canara Bank
1,257
159
0
200
26
373
349
377
Capital First
472
354
0
480
36
171
180
196
Cholamandalam Invst
1,464
642
0
760
18
162
207
230
Dewan Housing Finance
654
154
0
250
63
151
172
194
HDFC Bank
35,873
973
0 1,364
40
245
282
327
HDFC
24,480 1,062
554 1,430
35
143
165
192
ICICI Bank
16,127
190
84
285
50
108
118
133
IndusInd Bank
7,218
831
0 1,080
30
186
282
321
Kotak Mahindra Bank
16,871
630
138
700
11
174
123
136
Lakshmi Vilas Bank
231
88
0
112
27
71
84
93
LIC Housing
3,109
422
0
555
32
152
177
207
L&T Finance Holdings
1,304
51
0
70
37
35
35
38
Power Finance
2,976
154
0
210
36
220
253
288
PNB
2,044
71
0
100
40
157
122
130
Repco Home Finance
523
572
0
695
21
127
137
163
Rural Electrification
2,251
156
0
200
28
229
251
268
SBI
17,955
158
45
190
20
136
134
146
Shriram City Union Fin
1,415 1,470
0 1,550
5
606
626
665
Shriram Transport
2,664
804
0
950
18
390
415
432
South India Bank
328
17
0
23
38
23
23
25
Union Bank
1,074
107
0
140
31
219
196
221
Yes Bank
4,224
688
0
900
31
278
325
383

P E (x)
FY 1 5 FY 1 6 E FY 1 7 E
29
19
14
35
28
21
107
23
13
20
18
15
11
10
10
24
23
18
83
45
29
20
18
16
20
16
14
19
16
12
25
19
15
34
23
17
36
19
13
6
7
5
32
27
15
15
16
13
12
33
24
19
9
10
3
6
4
29
19
14
21
19
16
7
6
5
24
20
16
13
12
11
6
5
5
25
22
18
20
42
32
12
9
7
15
13
11
10
10
9
3
3
3
4
10
4
29
23
19
3
3
3
6
9
6
17
15
13
15
13
12
7
6
5
4
5
3
14
11
9

P B (x)
FY 1 5 FY 1 6 E FY 1 7 E
6 .1
4 .8
3 .9
8.6
6.9
5.3
4.9
4.1
3.3
6.0
5.3
4.9
2.4
2.0
1.6
5.0
4.3
3.6
20.4
13.6
9.5
2.7
2.4
2.2
7.6
6.3
5.7
3.0
2.6
2.3
4.1
3.6
3.1
9.0
7.2
5.5
6.4
5.0
3.8
1.8
1.4
1.1
7.7
6.3
4.7
2 .7
2 .4
2 .1
2.0
6.3
4.3
3.5
0.8
1.2
1.1
0.4
0.5
0.4
2.1
2.0
1.8
4.0
3.1
2.8
1.0
0.9
0.8
4.0
3.5
3.0
3.5
3.1
2.6
1.0
0.9
0.8
4.5
3.0
2.6
2.7
3.9
3.5
1.2
1.0
0.9
2.8
2.4
2.0
1.5
1.4
1.3
0.7
0.6
0.5
0.5
0.6
0.5
4.5
4.2
3.5
0.7
0.6
0.6
0.8
0.8
0.8
2.4
2.3
2.2
2.1
1.9
1.9
0.7
0.7
0.7
0.5
0.5
0.5
2.5
2.1
1.8

E V /E B I TDA (x)
FY 1 5 FY 1 6 E FY 1 7 E
15
10
8
20
16
12
27
13
8
13
11
10
7
6
5
13
12
10
47
20
16
12
10
9
14
10
9
12
10
9
13
9
7
12
9
7
21
12
9
3
4
3
21
17
10
-

RoE (% )
FY 1 5 FY 1 6 E FY 1 7 E
25
26
28
27
27
29
5
20
28
31
32
33
23
22
19
23
21
22
27
36
39
14
14
14
42
45
42
17
18
20
18
21
22
28
34
36
19
30
32
30
23
23
26
26
35
16
15
15
18
20
22
20
9
(5)
7
11
5
8
8
10
13
18
17
16
15
15
16
19
18
19
20
20
20
15
15
15
19
17
15
14
11
11
11
12
13
18
19
19
14
13
14
22
20
18
8
4
7
16
18
20
25
23
17
11
8
9
16
15
15
14
14
14
9
10
11
10
8
11
21
20
20

Di v Y i e l d (% )
FY 1 5 FY 1 6 E FY 1 7 E
1 .2
1 .7
2 .3
0.4
0.5
0.6
0.5
0.6
1.1
2.3
3.2
4.1
0.4
0.5
0.6
0.6
0.9
1.1
0.2
0.2
0.3
1.7
1.8
2.0
2.4
3.2
4.4
1.2
1.3
1.5
0.8
1.6
2.0
0.9
1.3
1.3
0.7
0.8
1.0
1.6
2.3
3.3
0.7
0.8
0.8
1 .6
1 .6
1 .9
1.2
0.3
0.4
0.5
2.4
1.5
7.2
3.2
6.3
0.6
1.0
1.3
0.5
0.7
0.9
1.8
2.3
2.6
0.8
1.0
1.2
1.4
1.5
1.6
2.6
2.9
3.2
0.5
0.6
0.7
0.2
0.1
0.1
2.3
2.3
2.5
1.2
1.3
1.4
1.6
3.9
4.2
5.9
8.7
9.7
5.6
3.1
4.2
0.3
0.3
0.4
6.9
8.0
9.6
2.2
2.2
2.8
1.1
1.4
1.7
1.5
1.7
1.9
3.5
4.1
4.7
5.6
4.7
5.6
1.3
1.5
1.7

Continued

35

29 FEB 2016

Axis Capital valuation

UNION BUDGET FY17

M cap
CM P V oI (Rs)*
Se ct or / Com p an y
(U SD m n )
(Rs)
FY 1 6 E
Ce m e n t
ACC
3,265 1,191
0
Ambuja Cem
4,259
188
0
Birla Corp
370
329
0
Dalmia Bharat
740
623
0
Grasim Inds
4,520 3,317
305
HeidelbergCement
212
64
0
India Cement
298
67
0
JK Cement
487
478
0
JK Lakshmi Cement
463
270
0
Kesoram Ind
136
85
0
Prism Cement
456
62
0
Ramco Cement
1,251
360
0
Shree Cement
5,126 10,078
0
UltraTech Cem
11,088 2,767
0
En gi n e e r i n g
ABB
3,142 1,015
0
AIA Engg
1,107
804
0
Alstom T&D
1,339
358
0
Bharat Electronics
3,606 1,029
0
BHEL
3,256
91
0
Carborundum Universal
468
170
0
Cummins
3,277
810
37
Inox Wind
706
218
0
L&T
14,679 1,079
0
Sadbhav Engg
523
209
108
Siemens
5,140
989
0
Thermax
1,308
752
0
VA Tech Wabag
358
450
0
Voltas
1,075
223
0

TP U p si de
(Rs)
(% )
1,175
175
425
820
3,475
66
101
519
315
153
70
425
8,118
2,607

(1)
(7)
29
32
5
3
52
9
17
80
13
18
(19)
(6)

1,213
840
355
1,178
121
203
1,005
296
1,528
280
945
1,050
605
257

19
4
(1)
14
33
19
24
36
42
34
(4)
40
35
15

FDEP S (Rs)
P E (x)
FY 1 5 FY 1 6 E FY 1 7 E FY 1 5 FY 1 6 E FY 1 7 E
60
46
20
45
39
51
26
30
24
8
6
8
23
30
23
24
17
40
14
20
8
1
21
44
550
30
14
191
253
324
16
12
9
1
1
6
101
124
11
0
7
12 1,319
10
6
18
1
37
27
395
13
15
(2)
18
18
15
(63)
(39)
10
8
(1)
0
5
136
14
10
20
26
36
18
14
128
92
351
79
110
29
76
91
128
36
30
22
49
30
24
11
14
24
94
72
43
46
38
42
18
21
19
6
7
12
59
53
30
49
52
65
21
20
16
7
(2)
6
13
15
4
8
12
42
23
14
25
28
32
31
28
24
13
18
25
16
12
9
35
47
59
31
23
18
7
8
11
14
12
9
7
18
22
147
56
44
19
28
35
39
27
21
21
21
30
22
22
15
10
10
13
22
22
17

P B (x)
FY 1 5 FY 1 6 E FY 1 7 E
3 .6
3 .4
2 .9
2.7
2.8
2.8
2.9
2.9
2.0
1.0
0.9
0.9
1.6
1.5
1.3
1.3
1.3
1.2
1.4
1.4
1.3
0.6
0.6
0.5
2.0
2.1
1.9
2.5
2.6
2.3
11.0
3.1
3.0
2.3
3.3
2.8
2.4
7.0
6.7
5.5
4.0
3.6
3.1
4 .2
3 .8
3 .4
7.7
7.2
6.5
3.6
3.2
2.9
7.0
6.4
5.4
3.1
2.8
2.5
0.7
0.7
0.7
2.9
2.8
2.4
7.8
7.0
6.2
3.5
2.7
2.1
2.5
2.1
1.8
2.4
2.4
2.2
8.0
6.9
6.4
4.2
3.8
3.4
2.7
2.5
2.2
3.5
3.1
2.7

EV /EB I TDA (x)

FY 1 5 FY 1 6 E FY 1 7 E
17
18
11
12
13
11
22
27
10
6
7
3
17
9
7
12
10
7
8
11
6
7
5
4
13
14
7
13
16
7
21
22
6
15
12
8
14
10
8
24
28
15
18
16
11
23
19
16
39
30
25
13
15
12
25
24
17
16
15
12
5
6
13
10
7
28
25
22
11
8
6
19
16
14
15
13
10
50
32
29
18
17
13
11
11
7
18
16
11

RoE (% )
Di v Y i e l d (% )
FY 1 5 FY 1 6 E FY 1 7 E FY 1 5 FY 1 6 E FY 1 7 E
9
11
15
1 .0
1 .1
1 .3
11
9
12
2.9
3.4
3.9
13
10
12
2.7
3.1
4.0
7
5
11
1.9
2.3
2.7
0
5
10
0.5
0.5
0.5
8
10
12
0.7
0.8
0.9
2
1
12
0.8
0
6
10
7
1
15
0.9
1.3
1.6
14
(2)
16
0.8
1.0
1.3
(251)
332
(39)
(6)
2
20
0.7
9
17
19
0.4
0.6
0.6
9
6
21
0.2
0.2
0.3
12
12
15
0.3
0.4
0.4
11
12
14
1 .3
1 .3
1 .5
8
10
16
0.4
0.4
1.0
23
16
16
1.0
1.0
1.2
12
13
19
0.5
0.5
0.5
16
15
17
1.1
1.7
2.3
6
(2)
5
2.2
2.2
3.3
7
13
18
0.7
0.9
0.9
26
25
26
1.9
1.9
2.3
33
25
26
8
10
11
1.6
1.3
1.4
10
10
13
0.3
0.4
0.5
6
13
15
0.7
1.2
1.2
11
15
17
0.7
1.0
1.2
13
12
16
0.7
0.7
1.1
17
15
17
1.0
1.0
1.0

Continued

36

29 FEB 2016

Axis Capital valuation

UNION BUDGET FY17

M cap
Se ct or / Com p an y
(U SD m n )
FM CG
Asian Paints
11,885
Berger Paints
2,274
Britannia Inds
4,832
Colgate Palmolive
3,264
Dabur
6,108
Emami
3,260
GlaxoSmithKline Consumer 3,426
Godrej Consumer
5,912
Hindustan Unilever
26,219
ITC
34,719
Marico
4,462
Jyothy Lab
680
Nestle
7,057
Tata Global Beverages
955
United Breweries
3,111
United Spirits
5,625
Zydus Wellness
367
I n fr ast r u ct u r e
Adani Enterprises
946
Adani Ports & SEZ
5,930
Ashoka Buildcon
483
Gujarat Pipavav Port
1,038
I T Se r vi ce s
eClerx Services
786
Firstsource Solutions
295
HCL Tech
16,727
Hexaware Technologies
1,030
Info Edge
1,243
Infosys Tech
36,348
Intellect Design
240
Just Dial
545
Mindtree
1,742
Mphasis
1,288
Oracle Financials
3,991
Persistent Systems
710
Redington
593
TCS
62,777
Tech Mahindra
5,862
Wipro
18,755

CM P V oI (Rs)*
(Rs)
FY 1 6 E

TP U p si de
(Rs)
(% )

849
225
2,759
822
238
984
5,579
1,189
830
296
237
257
5,012
104
806
2,651
644

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

800
205
3,275
825
260
850
6,070
1,360
800
360
190
300
5,500
142
700
3,250
780

(6)
(9)
19
0
9
(14)
9
14
(4)
22
(20)
17
10
37
(13)
23
21

59
196
177
147

0
0
0
7

70
266
226
110

19
36
28
(25)

1,320
30
812
234
705
1,084
163
537
1,422
420
3,222
608
102
2,182
415
520

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

1,375
50
950
252
739
1,432
305
870
1,411
442
3,400
700
186
2,475
526
585

4
67
17
8
5
32
87
62
(1)
5
6
15
83
13
27
13

FDEP S (Rs)
FY 1 5 FY 1 6 E FY 1 7 E
15
19
22
4
5
6
45
71
86
21
22
25
6
7
8
21
23
26
139
170
194
26
34
41
18
19
22
12
12
14
4
6
6
7
9
10
127
101
141
6
7
8
10
12
14
(47)
29
50
28
28
31
18
14
20
11
13
13
5
7
9
7
4
5
55
82
92
3
4
5
51
53
63
11
13
16
14
12
16
54
59
72
(8)
(3)
2
20
16
19
64
75
94
32
34
44
141
153
200
36
37
47
10
11
12
111
122
138
30
33
38
35
37
42

P E (x)
P B (x)
FY 1 5 FY 1 6 E FY 1 7 E FY 1 5 FY 1 6 E FY 1 7 E
40
40
3 3 2 2 .4
2 0 .1
1 8 .2
57
46
39
17.1
14.3
12.0
58
48
40
12.0
10.5
9.1
61
39
32
26.7
18.3
13.4
40
37
33
29.0
25.0
22.4
39
33
29
12.5
10.3
8.8
46
43
38
18.1
18.3
19.6
40
33
29
11.1
9.5
8.2
45
35
29
9.4
7.8
6.6
46
44
38
48.2
48.6
47.4
25
24
22
7.7
6.8
6.2
53
42
39
16.7
13.3
11.1
38
30
25
6.0
5.5
5.0
39
50
36
17.0
17.2
14.7
17
15
13
1.1
1.0
1.0
82
70
56
11.5
10.1
8.8
92
53
58.4
36.4
22.8
23
23
21
6.2
5.1
4.3
17
18
15
3 .3
2 .8
2 .4
3
4
3
0.3
0.5
0.4
18
15
15
3.8
3.1
2.6
34
27
20
2.1
1.6
1.5
20
38
28
4.0
3.6
3.2
19
17
15
5 .7
4 .7
4 .0
24
16
14
7.7
6.2
5.1
9
8
6
1.0
0.9
0.8
16
15
13
4.6
4.0
3.5
22
18
15
5.5
5.0
4.8
51
57
43
5.1
4.8
4.4
20
18
15
4.9
4.4
3.9
81
2.6
2.8
2.7
27
34
29
5.6
5.0
4.3
22
19
15
5.9
4.8
3.9
13
12
9
1.6
1.5
1.4
23
21
16
7.9
5.8
4.3
17
17
13
3.5
3.1
2.7
10
9
8
1.7
1.5
1.3
20
18
16
7.4
6.0
4.9
14
13
11
3.0
2.6
2.2
15
14
13
3.2
2.8
2.5

EV /EB I TDA (x)

FY 1 5 FY 1 6 E FY 1 7 E
29
25
21
36
28
25
33
27
23
38
25
21
27
23
21
31
26
22
41
32
27
31
23
20
30
25
22
33
31
26
17
16
14
36
28
26
33
24
18
22
28
21
10
10
8
35
30
26
56
38
29
22
21
17
14
13
11
7
11
12
15
12
10
15
9
9
17
18
16
14
13
10
16
11
9
7
6
4
12
11
9
14
12
10
40
48
35
15
12
10
39
18
22
17
16
13
10
10
9
7
15
14
10
12
11
8
8
7
6
15
13
11
9
9
7
13
12
10

RoE (% )
FY 1 5 FY 1 6 E FY 1 7 E
48
51
54
32
34
33
22
23
24
53
56
48
82
72
72
36
35
33
45
43
50
30
31
31
22
24
24
110
110
126
34
31
30
36
35
31
16
20
21
47
34
45
6
7
8
15
15
17
(37)
49
53
30
24
23
21
18
17
8
8
15
24
22
19
6
7
7
21
10
12
31
30
29
35
42
39
11
11
14
32
28
29
26
29
33
14
9
11
26
25
27
(6)
3
23
15
16
29
28
29
13
13
16
20
32
31
22
20
22
18
17
17
38
37
34
25
22
22
23
21
21

Di v Y i e l d (% )
FY 1 5 FY 1 6 E FY 1 7 E
1 .3
1 .5
1 .8
0.7
0.8
1.0
0.6
0.7
0.9
0.6
0.7
0.9
1.5
1.8
2.2
0.8
1.3
1.5
0.7
0.7
0.9
1.3
1.5
1.8
0.5
0.6
0.8
1.8
1.9
2.2
2.1
2.4
2.9
0.5
0.7
0.9
0.8
1.5
1.7
1.3
1.0
1.5
2.2
2.4
2.4
0.1
0.2
0.3
0.1
0.2
0.9
1.1
1.2
0 .8
1 .0
1 .1
2.8
2.8
4.8
0.7
0.8
0.7
0.9
1.3
1.3
3 .4
2 .4
2 .8
1.9
2.7
3.0
2.0
2.9
3.5
4.0
3.7
4.5
0.4
0.4
0.4
2.1
2.7
3.3
0.4
0.5
0.5
1.2
1.2
1.4
3.8
4.0
5.3
20.6
1.6
2.0
2.5
1.9
2.1
2.4
4.2
2.3
2.6
1.6
1.7
2.0
2.3
2.7
3.1

Continued

37

29 FEB 2016

Axis Capital valuation

UNION BUDGET FY17

Se ct or / Com p an y
Logi st i cs
Container Corp
Gateway Distriparks
Navkar Corp
M e di a
DB Corp
Dish TV
Hathway Cable
Jagran Prakashan
Siti Cable Network
UFO Moviez
Zee Ent
M e t al s / M i n i n g
Hindalco Inds
Hindustan Zinc
NALCO
NMDC
Vedanta
SAIL
Tata Steel
Oi l & Gas
Aban Offshore
BPCL
Cairn
GAIL
GSPL
Gulf Oil Lubricants
HPCL
Indian Oil
Indraprastha Gas
Oil India
ONGC
Petronet LNG
Reliance Inds

M cap
(U SD m n )

CM P V oI (Rs)*
(Rs)
FY 1 6 E

TP U p si de
(Rs)
(% )

3,299
374
315

1,159
236
151

0
0
0

1,160
295
255

824
1,054
364
712
350
153
5,227

307
68
30
149
35
388
373

0
0
0
0
0
0
0

380
95
46
178
45
730
400

2,070
9,884
1,234
4,709
3,067
2,111
3,533

69
160
33
81
71
35
249

23
0
0
0
0
0
0

90
155
38
93
95
42
225

134
8,128
3,235
5,641
1,040
332
3,403
13,020
1,038
2,717
24,248
2,568
45,719

157
770
118
305
126
458
688
367
508
310
194
234
967

0
0
0
0
0
0
0
0
0
0
0
0
0

225
1,010
140
400
170
600
1,030
480
580
345
195
250
1,390

FDEP S (Rs)
P E (x)
FY 1 5 FY 1 6 E FY 1 7 E FY 1 5 FY 1 6 E FY 1 7 E
21
25
21
0
54
45
53
22
26
22
25
17
12
13
14
20
18
69
8
7
12
19
22
13
303
29
22
24
17
17
21
18
18
14
40
0
3
5 2,290
23
14
53
(3)
(2)
(0)
19
10
10
13
15
15
12
27
(2)
1
2
29
21
88
19
26
34
21
15
12
7
10
10
13
36
37
28
9
8
8
31
13
5
8
4
9
6
(3)
19
16
15
8
10
10
16
5
3
2
7
12
14
14
16
9
8
5
9
10
34
20
5
7
4
14
11
20
5
(7)
(1)
8
(10)
11
(15)
(2)
23
14
11
11
44
92
3
16
2
52
10
31
66
86
87
12
9
9
18
44
13
13
3
9
9
31
23
19
24
13
16
13
34
8
8
10
17
15
13
31
16
20
22
29
23
21
50
81
114
122
9
6
6
31
13
49
58
27
7
6
14
31
32
34
16
16
15
11
42
38
31
7
8
10
0
21
21
13
9
9
15
7
10
12
13
23
19
18
44
73
82
97
13
12
10

P B (x)
FY 1 5 FY 1 6 E FY 1 7 E
2 .9
2 .6
2 .4
3.0
2.7
2.5
2.8
2.6
2.4
2.2
1.6
1.4
7 .5
6 .2
6 .8
4.4
3.9
3.5
14.1
2.1
2.3
2.2
4.2
3.6
3.1
13.1
6.2
3.1
2.2
1.9
1.7
10.1
8.5
7.1
1 .1
1 .0
0 .9
0.6
0.6
0.6
1.6
1.4
1.3
0.7
0.6
0.6
1.0
1.0
1.0
0.6
0.5
0.4
0.3
0.3
0.4
1.3
1.1
0.9
1 .4
1 .3
1 .1
0.2
0.2
0.2
2.5
2.1
1.8
0.4
0.4
0.4
1.3
1.3
1.2
2.0
1.8
1.6
12.1
9.5
7.6
1.5
1.2
1.0
1.3
1.1
1.0
3.4
2.9
2.5
0.9
0.8
0.8
0.9
0.9
0.8
3.1
2.7
2.4
1.4
1.3
1.2

EV /EB I TDA (x)

FY 1 5 FY 1 6 E FY 1 7 E
15
16
14
15
17
15
8
10
8
20
16
10
22
17
13
10
10
8
11
8
6
13
11
6
11
8
7
25
9
6
7
5
4
28
23
18
4
5
5
7
8
6
5
5
5
1
2
2
1
2
2
2
5
4
3
9
5
10
6
9
7
7
6
8
8
8
6
6
2
5
6
9
9
7
8
8
7
15
13
9
5
4
15
6
4
8
8
7
5
5
6
4
4
5
14
11
11
11
10
8

RoE (% )
Di v Y i e l d (% )
FY 1 5 FY 1 6 E FY 1 7 E FY 1 5 FY 1 6 E FY 1 7 E
15
11
12
1 .2
1 .0
1 .2
14
11
12
1.2
0.9
1.1
21
14
14
3.0
3.0
3.0
15
10
12
20
(1 )
49
0 .8
0 .8
0 .9
26
23
25
2.5
2.5
3.1
(1)
(192)
205
(26)
(15)
(2)
29
26
28
2.3
2.7
3.0
(74)
30
21
11
14
16
31
29
30
0.5
0.5
0.5
16
7
8
5 .0
4 .7
4 .1
12
5
7
1.3
1.3
1.3
20
15
13
2.7
3.7
3.7
10
5
4
6.4
4.4
4.4
21
11
10
10.5
11.7
7.4
17
4
5
6.7
6.7
8.1
4
(6)
(1)
5.7
5
(7)
(1)
4.0
1.6
1.6
12
13
12
2 .4
1 .8
1 .8
12
0
2
1.8
1.8
1.9
23
25
22
2.2
2.2
2.2
14
4
4
7.1
2.1
2.0
11
8
10
2.0
3.3
3.3
12
12
13
0.9
0.8
0.8
46
41
1.2
1.7
1.9
18
22
19
3.6
1.2
1.2
5
16
16
1.8
1.8
1.8
23
20
18
1.2
1.2
1.2
12
10
8
6.5
6.1
5.0
10
10
6
4.9
2.5
2.4
14
15
15
0.9
1.1
1.1
11
12
12
0.9
1.0
1.0

Continued

38

29 FEB 2016

Axis Capital valuation

UNION BUDGET FY17

M cap
Se ct or / Com p an y
(U SD m n )
P h ar m ace u t i cal s
Alembic Pharma
1,702
Alkem Labs
2,204
Aurobindo Pharma
5,595
Biocon
1,369
Cadila Healthcare
4,706
Cipla
6,041
Divi's Lab
3,685
Dr Reddys Lab
7,548
GlaxoSmithKline Pharma
3,903
Glenmark Pharma
3,033
IPCA
1,041
Lupin
11,527
Sun Pharma
30,048
Syngene Intl
1,140
P owe r U t i l i t i e s
Adani Power
1,339
KSK Energy Ventures
225
NHPC
3,265
NTPC
14,412
Power Grid
9,938
Tata Power
2,265
Re al Est at e
DLF
2,319
Godrej Properties
781
Oberoi Realty
1,144
Peninsula Land
68
Phoenix Mills
539
Prestige Estates
816
Puravankara Projects
157
Sobha Developers
342
Sunteck Realty
176

CM P V oI (Rs)*
(Rs)
FY 1 6 E

TP U p si de
(Rs)
(% )

618
1,263
655
469
315
515
951
3,031
3,156
736
565
1,752
855
390

0
0
0
0
0
0
0
0
0
0
0
0
14
0

560
1,550
940
650
340
640
1,240
2,920
2,450
800
680
1,880
790
360

(9)
23
43
39
8
24
30
(4)
(22)
9
20
7
(8)
(8)

28
36
20
120
130
57

0
0
0
0
0
7

25
39
20
157
162
83

(9)
7
(1)
31
25
45

89
268
231
17
241
149
45
239
192

0
0
0
0
0
0
0
0
0

143
335
314
25
326
218
58
335
254

61
25
36
50
35
46
28
40
32

FDEP S (Rs)
P E (x)
FY 1 5 FY 1 6 E FY 1 7 E FY 1 5 FY 1 6 E FY 1 7 E
35
33
22
15
42
27
41
15
23
39
67
77
33
19
16
28
35
47
24
19
14
20
21
26
23
22
18
11
15
15
28
21
20
17
22
29
31
23
18
33
41
50
29
23
19
137
156
146
22
19
21
50
44
72
63
71
44
30
28
57
25
26
13
20
13
34
28
43
17
54
47
75
33
37
23
20
20
34
43
42
25
9
11
14
45
35
27
14
11
10
(8)
(2)
3
8
(5)
(11)
(1)
2
2
2
9
8
8
10
10
11
12
12
11
10
12
14
13
11
9
1
4
6
54
12
8
23
21
16
3
4
5
27
23
19
10
14
14
28
19
19
10
13
17
24
18
14
(1)
0
2
139
11
9
8
13
27
30
18
9
10
12
17
15
13
6
3
5
8
13
9
24
15
24
10
16
10
11
22
33
18
9
6

P B (x)
FY 1 5 FY 1 6 E FY 1 7 E
7 .5
6 .5
5 .4
13.2
7.4
5.9
5.0
4.0
3.3
7.4
5.8
4.2
2.9
2.5
2.2
7.6
7.4
7.4
3.8
3.3
2.8
7.1
6.1
5.2
4.6
3.9
3.4
14.6
16.9
16.9
6.7
4.5
3.4
3.2
3.0
2.6
8.8
7.4
5.8
7.8
6.7
5.4
9.2
7.5
6.0
1 .3
1 .3
1 .2
1.4
1.5
1.3
0.5
0.5
0.5
0.7
0.7
0.7
1.2
1.2
1.1
1.8
1.6
1.4
1.2
1.2
1.1
1 .3
1 .2
1 .1
0.5
0.5
0.5
2.9
2.6
2.3
1.6
1.5
1.3
0.3
0.3
0.3
2.1
1.7
1.6
1.5
1.4
1.3
0.5
0.5
0.5
1.0
0.9
0.9
0.8
0.8
0.7

EV /EB I TDA (x)

FY 1 5 FY 1 6 E FY 1 7 E
23
22
16
30
11
16
32
16
14
16
13
10
14
13
10
19
14
15
18
14
12
21
18
15
15
12
13
46
66
37
19
15
9
15
19
10
21
24
15
25
25
17
28
22
17
10
9
9
10
8
6
29
17
9
8
8
8
10
10
10
11
9
8
8
7
6
15
12
10
13
10
10
32
20
12
16
12
10
60
20
10
10
8
9
10
9
7
7
6
7
10
7
17
10
7

RoE (% )
Di v Y i e l d (% )
FY 1 5 FY 1 6 E FY 1 7 E FY 1 5 FY 1 6 E FY 1 7 E
24
22
26
0 .7
0 .7
0 .7
36
64
28
0.6
0.7
0.9
16
24
22
0.3
0.4
0.5
36
35
35
0.7
0.7
0.7
13
12
13
1.1
1.1
1.1
30
36
36
3.8
3.8
4.2
13
15
17
0.4
0.4
0.4
27
28
29
2.1
2.1
2.1
23
22
18
0.6
0.7
0.7
22
22
39
1.6
2.0
2.0
27
21
30
0.3
0.4
0.4
12
7
17
0.2
0.1
0.3
30
22
28
0.4
0.4
0.4
21
17
24
0.2
0.2
0.2
23
23
25
1.5
0.2
0.4
8
10
12
1 .9
3 .7
4 .1
(37)
(14)
17
(6)
(16)
(1)
9
9
8
3.0
5.1
5.1
10
10
10
2.1
4.6
4.9
14
15
17
1.5
2.7
3.4
2
9
12
2.3
2.4
3.3
6
7
8
1 .0
1 .0
1 .4
2
2
3
1.4
1.5
2.1
10
14
14
7
9
10
0.3
0.4
0.6
(1)
0
3
0.1
1.8
8
6
9
0.7
0.7
1.1
10
9
10
0.9
1.2
1.3
6
4
5
4.3
3.0
4.5
10
6
9
1.6
1.0
1.6
6
9
12
0.1
0.1
0.1

Continued

39

29 FEB 2016

Axis Capital valuation

UNION BUDGET FY17

Se ct or / Com p an y
Re t ai l
Aditya Birla Nuvo
Bata India
Jubilant Foodworks
Page Industries
Shopper's Stop
Titan Inds
Westlife Devlp
Te l e com **
Bharti Airtel
Bharti Infratel
Idea Cellular
Reliance Com
M i sce l l an e ou s
Apollo Hospitals
Arvind
Astral Poly Technik
Coromandel Intl
Cox & Kings
EID Parry
Finolex Industries
Fortis Healthcare
Godrej Industries
Havells India
Kajaria Ceramics
Mahindra Holidays
Supreme Ind
TTK Prestige
Tube Invst
UPL
V-Guard Ind
Whirlpool of India

M cap
(U SD m n )

CM P V oI (Rs)*
(Rs)
FY 1 6 E

TP U p si de
(Rs)
(% )

1,351
858
957
1,611
413
4,101
488

711
457
996
9,892
339
316
215

0
UR
0
550
0 1,000
0 11,100
0
500
0
360
0
300

18,488
9,879
5,491
1,879

317
357
104
52

0
0
0
0

338
452
123
97

2,982
901
596
723
364
433
555
1,129
1,432
2,482
1,006
470
1,241
719
986
2,389
350
1,105

1,468
239
341
170
147
169
306
167
292
272
867
363
669
4,229
360
382
798
597

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

1,415
344
377
200
336
UR
326
200
441
290
917
520
674
3,600
575
500
1,060
680

FDEP S (Rs)
FY 1 5 FY 1 6 E FY 1 7 E
110
20
13
12
16
0
19
18
21
12
176
209
259
48
(4)
3
8
14
9
9
11
40
(2)
(0)
1
7
15
11
14
27
11
12
15
18
9
9
7
88
3
3
4
(4)
23
27
35
44
15
14
19
11
6
11
15
18
14
11
17
128
24
17
24
10
6
7
17
22
20
(3)
(1)
2
51
6
8
10
7
7
8
10
6
23
29
35
43
9
14
18
1
25
23
34
(15)
77
103
144
60
5
6
12
31
27
28
35
33
24
33
43
14
17
20
27

P E (x)
P B (x)
FY 1 5 FY 1 6 E FY 1 7 E FY 1 5 FY 1 6 E FY 1 7 E
37
42
4 4 1 2 .2
1 0 .1
8 .4
6
0.7
35
37
28
5.7
4.9
4.4
53
55
48
9.7
8.5
7.4
56
47
38
28.5
21.6
16.6
110
44
5.3
5.2
4.7
34
36
28
9.1
7.9
6.8
217
6.3
6.3
6.2
23
25
21
2 .4
2 .4
2 .3
21
28
22
2.0
2.0
1.8
34
29
24
4.0
4.1
4.2
12
12
15
1.6
1.4
1.3
18
19
12
0.4
0.4
0.4
63
55
42
6.4
5.9
5.3
16
17
12
2.3
2.1
1.8
53
32
23
6.5
5.6
4.7
12
16
10
2.2
1.5
1.3
6
9
6
1.0
0.9
0.8
18
2.2
46
18
14
4.8
4.4
3.9
87
1.6
1.7
1.6
47
36
30
3.0
2.9
2.7
37
34
26
7.2
6.5
5.9
38
30
25
9.3
7.6
6.2
39
26
20
4.4
4.0
3.5
26
29
20
7.0
6.5
5.5
55
41
29
7.6
6.5
5.3
78
62
30
5.1
4.9
4.4
14
13
11
2.8
2.4
2.1
34
24
19
6.3
5.2
4.3
36
30
22
8.4
6.6
5.1

EV /EB I TDA (x)

FY 1 5 FY 1 6 E FY 1 7 E
37
27
21
6
17
21
15
25
23
19
35
30
24
23
16
12
24
25
20
216
63
43
8
7
6
6
6
5
12
12
10
5
4
3
7
7
5
30
26
21
9
8
7
25
19
14
8
5
4
6
6
5
20
20
11
9
71
35
17
34
27
21
24
22
17
20
16
13
18
13
10
13
20
11
32
25
19
25
20
15
8
7
6
19
15
12
21
18
13

RoE (% )
FY 1 5 FY 1 6 E FY 1 7 E
29
25
26
12
18
14
17
20
16
16
58
52
49
(6)
5
11
29
23
26
(5)
(1)
3
11
10
11
10
7
8
11
14
17
16
13
9
2
2
3
11
11
13
15
12
16
16
19
23
18
11
14
18
11
13
13
10
26
29
(3)
(1)
2
7
8
9
21
20
24
29
28
28
11
16
19
29
23
30
15
17
20
7
8
15
21
19
21
20
24
25
26
24
26

Di v Y i e l d (% )
FY 1 5 FY 1 6 E FY 1 7 E
0 .6
0 .7
0 .9
1.0
0.6
0.8
0.9
0.7
0.8
1.0
0.7
0.9
1.3
1 .6
1 .7
1 .9
1.2
1.3
1.3
3.1
3.5
4.2
0.6
0.6
0.6
0.4
0.4
1.1
1.3
1.7
0.4
0.6
0.9
2.6
1.8
2.5
0.7
0.7
0.7
1.8
0.7
2.9
3.6
0.9
0.9
0.9
1.1
1.3
1.9
0.5
0.8
1.0
1.1
1.3
2.0
1.3
1.6
1.8
0.5
0.9
1.2
0.6
0.6
0.8
1.3
1.8
2.1
0.6
0.8
1.1
-

Source: Axis Capital, Bloomberg

40

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xiv. Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including but not
limited to loss of capital, revenue or profits that may arise from or in connection with the use of the information.
xv.
Copyright in this document vests exclusively with Axis Capital Limited.

Axis Capital Limited

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DEFINITION OF RATINGS
Ratings

Expected absolute returns over 12 months

BUY

More than 10%

HOLD

Between 10% and -10%

SELL

Less than -10%

ANALYST DISCLOSURES

1. The analyst(s) declares that neither he/ his relatives have a Beneficial or Actual ownership of > 1% of equity of subject company/ companies
2. The analyst(s) declares that he has no material conflict of interest with the subject company/ companies of this report

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