Vol. 34. No.

08 • MAR 18 - 31, 2019

38 Cover Story
DSIJ
26

Exclusive Interview with

Wealth-Creators Ashishkumar Chauhan
MD & CEO, BSE

Regulars
Recommendations 06 Editor’s Keyboard

10
Choice Scrip
12
Low Priced Scrip
14
Hot Chips
07
08
16
Company Index
Market View
Technicals
48 Super 50

20 Analysis
73
98
104
Elite 100
Query Board
Reviews
Ramco Cements
Cementing Future Growth 105 Kerbside
With High Capex Subscribers can access
the complete databank

32
consisting of more than
3500 companies on our
Special Report website www.DSIJ.in

Go For Gold In 2019! Communication Feature sections

are advertorials provided by the
company & carried on “as is” basis.

4 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Broader Market Participation
To Improve Further !
I
am extremely happy and excited to inform you that our current issue is the 33rd Anniversary Special
issue. Indeed, it has been glorious 33 years of helping investors in India create wealth for themselves.
These 33 years were full of challenges, victories, hits and misses, sweat, learnings and unlearnings,
technology upgradation and information sharing. While all these years were action-filled, at the heart,
we simply wanted our investors to make some money for themselves. Majority of them did, and that is
the only reason why we still do what we do best—guide investors with money-making ideas. I sincerely
thank all the investors, both old and new, for believing in us. Be assured of the best coming from our
side for years to come.

Coming back to the markets, we have been saying loud and clear that there is no major worry for the
markets and that the broader bullish undertone of the market is intact. I am delighted to share the
excitement of the revival in the market mood we are seeing in past couple of weeks. The stocks are
jumping anywhere between 10 to 20 per cent, and that too in no time!

I think it is nothing but a nice well-timed pre-market rally that we are all witnessing. The FIIs have
turned positive on the Indian markets and are participating via the ETFs and the block deals. Also, the
markets appear to be factoring in a NDA victory. The popularity of our Prime Minister Narendra Modi
is on the rise and there is no leader among the opposition ranks that matches his stature. In my view,
investors who are waiting for the election results may be at a loss as the market is in no mood to wait till
the election results to unleash itself.

The cover story in this issue talks about the top wealth
creators in the past few years and discusses the market
outlook for the remainder of the year. The outlook
remains positive and the broader market participation
can be expected to improve noticeably. Do not miss the
list of top 150 wealth creators. The list will help you in
your investment decisions.

In this Anniversary Special issue, we have Mr Ashish

Chauhan, MD & CEO of BSE, whom I consider a top
class regulator and a world class administrator,
contributing his views on what is happening at the Asia’s
oldest stock exchange. It is interesting to note what he
has to say to all the investors. Do let me know your
feedback on the inputs shared by Mr Chauhan.

What has gone unnoticed all these days is the way gold has been performing. In our special report, we
have reiterated the importance of gold in an individual’s portfolio. Gold is a precious asset and should be
a part of the overall portfolio of any investor. Do read our special story to understand the gold price
outlook for 2019. Looks like 2019 is going to be a year where we have both gold prices and equity prices
(Sensex) moving up.

The way to win in this market is by going long on quality stocks. We have said this before and we repeat
it today – the year 2019 is going to be a year for wealth creation. The financial assets should do well not
only in 2019, but in the coming three to five years. Remain invested, don’t attempt to time the market
and continue building a portfolio for the next five years. The broader market rally may be sustainable
this time around.

Wish you happy investing in the days ahead!

V B PADODE
Editor-in-Chief

6 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 facebook.com/DSIJin twitter.com/DSIJ

www.dsij.in/apps.aspx
enquiry@dsij.in linkedin.com/in/DalalStreetInvestmentJournal

Vol. 34. No. 08 • MAR 18 - 31, 2019

Founder & Editor-In-Chief

V B Padode
Subscription & Customer Service
Utkarsh Sawale, Mayank Dubey
Private Banks
Editors Compliances and Internal Audit I started reading your journal few weeks back. I really like all your stories.
Prakash Patil - Chief Copy Editor Arvind Manor The stocks are recommended with adequate background. Keep up the
Gayathri Udyawar - Copy Editor
Marketing & Sales good work. Based on your recommendation, I invested in Bandhan Bank
Deputy Editors Farid Khan - AVP which appeared in Choice Scrip in the Dec 24-Jan 6 issue. I want to know
Yogesh Supekar Mumbai:
Shashikant Singh Anand Chinchole - Manager
your outlook on the stock and the sector. - Ramasamy
Namit Kawa - Manager
Research
Neerja Agarwal - VP Delhi: Editor Responds: Thank you for writing to us. We appreciate your
Karan Bhojwani - Sr. Manager Lokesh Sharma - Sr. Manager feedback and support. It is our constant endeavour to help investors create
Dipendra Kumar - Manager
Apurva Joshi - Analyst wealth to the best of our abilities. The outlook is positive for private banks
Amir Shaikh - Senior Associate Domain Experts and for Bandhan Bank. Remain invested in a diversified portfolio for best
Nidhi Jani - Senior Associate Hemant Rustagi experience in the markets.
Graphics Jayesh Dadia
Vipin Bendale

Recommendations
DSIJ Private Limited Company/Scheme Reco. Price (`) Column Page No

Amararaja Batteries l Exit 744.05 QueryBoard 100

Managing Director Balkrishna Industries l Buy 934.00 Kerbside 105

Rajesh V Padode
Cadila Healthcare l Hold 327.10 QueryBoard 100
For Customer Service
020-49072626 OR  service@DSIJ.in CCL Products (India) Ltd l Buy 299.45 Choice Scrip 10
Mumbai Office
419-A, 4th Floor, Arun Chambers, Tardeo, Next to AC Market ICICI Securities l Hold 230.50 QueryBoard 99
Mumbai - 400034 022-43476012/16/17
IPCA LABORATORIES l Buy 923.55 Technicals 18
Pune Office
C-305, 3rd Floor, Trade Center, North Main Road, Near Axis Bank, Karnataka Bank l Buy 124.90 Hot Chips 14
Opposite Lane no. 6, Koregaon Park, Pune - 411001
020-49072600
LT Foods l Hold 37.25 QueryBoard 98
Delhi 8076878278 M&M Financial Services l Hold 443.65 Reviews 104

Music Broadcast Ltd. (MBL) l Buy 60.50 Low Priced Scrip 12

Navkar Corp l Hold 46.45 QueryBoard 98

To advertise, mail us on ads@dsij.in NTPC l Buy 151.10 Kerbside 105
Printer and Publisher: Nitin Sawant, Editor: V B Padode for DSIJ Pvt Ltd.
on behalf of Achievements Merchandise Pvt Ltd. Printed at RMOSS Prints PVR l Buy 1634.70 Kerbside 105
Pvt. Ltd., C/449, MIDC Pawane, TTC Area, Near Mayur Cold Storage,
Turbhe, Navi Mumbai -400708 and published from 419-A, 4th Floor,
Arun Chambers, Tardeo, Next to AC Market, Mumbai - 400034
Ramco Cements l Hold 689.10 Analysis 20
 All rights reserved.  While all efforts are made to ensure that the
information published is correct and up-to-date, Dalal Street Investment RELIANCE INDUSTRIES l Buy 1329.85 Technicals 18
Journal holds no responsibility for any errors that might occur. All
material contained herein is based on fundamental and technical analysis Tata Motors l Hold 189.20 QueryBoard 99
and other in-house methods, which though reliable, are not infallible. The
information given in the magazine is of an advisory nature. Readers are
advised to consult experts before taking any investment decision and Dalal Tata Sponge l Buy 764.15 Hot Chips 14
Street Journal holds no responsibility for any losses that may arise due to
investment decisions made on the basis of information given within the Torrent Pharmaceuticals l Buy 1845.60 Kerbside 105
magazine. No reproduction is permitted in whole or part without written
consent from Dalal Street Journal  All disputes are subject to the
exclusive jurisdiction of competent courts and forums in Mumbai only.
BP - Book Profit • BPP - Book Partial Profits • BL - Book Loss
 Dalal Street Investment Journal is a member of INS/ABCs.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 7

Market Watch
Markets Gain Momentum Ahead Of Elections
T
he announcement of the
schedule for 2019 Lok Sabha
polls ushered in new
excitement in the Indian
markets. Investors are eager to
shed the phase of uncertainty and move
into a stable government scenario. This
optimistic mood of the market
participants was evident in the uptick
seen in the benchmark indices during
this fortnight. The BSE Sensex and Nifty
outperformed their global peers, gaining
more than 2 per cent. Moreover, the
mid-caps and small-caps joined the party,
moving up by more than 4 and 7 per cent,
respectively.
Various pre-poll forecasts have indicated
that the BJP under Narendra Modi’s
leadership has a fair chance of winning
the general elections. Top psephologists
are of the opinion that although the
ruling BJP will lose seats, it will still
manage to form the next
government at the Centre.
These forecasts seem to have
net buyers, while the domestic
institutional investor (DIIs) were net
sellers. FIIs were net buyers to the tune of
Rs 20,464.09 crore, while DIIs were net
sellers with an outflow of Rs 8,378.3
crore during the fortnight.
On the global front, major economies
were still facing the uncertainties arising
from the US-China trade war. Both the
countries are back to square one, after all
the flurry of talks and posturing. The US
President Donald Trump’s economic
advisor Larry Kudlow said that the
scheduled US-China trade deal might
not happen at all and this news hit the
US indices badly. Major US indices, Dow
Jones Industrial, S&P 500 and the tech
index Nasdaq tanked 2.23 per cent, 1.78
per cent and 1.59 per cent, respectively,
during the fortnight. On the other hand,
the European indices were mixed, as the
UK’s FTSE 100 was down by 1 per cent,
while the German DAX remained
unchanged and the French CAC 40 was
up 0.29 per cent. Asian markets were also
mixed as Hang Seng dipped by 2.04 per
cent, followed by Japan’s Nikkei which
was down 1.87 per cent, while Shanghai
Composite was up 5.91 per cent during
the fortnight.
The most tracked commodity, crude oil,
saw an uptick following Saudi Arabia’s
decision to cut oil exports to reduce the
supply glut in the international oil
markets. However, the US supplies were
capping any significant gain in crude
prices. OPEC is slated to meet next week
on March 18 to review the level of crude
oil production.
Whatever be the election outcome,
market participants are in an upbeat
mood and ready to face any situation.
Traders and investors both seem to be
participating in the rally and with the FIIs
coming back, markets are expected to see
some exciting times, going ahead. DS

improved investor confidence

22nd Feb 08th Mar Gain/Loss
and have overtaken concerns Indices
2019 2019 (%)
about uncertainty and
Dow Jones Ind 26,031.81 25,450.24 -2.23%
valuation.
S&P 500 2,792.67 2,743.07 -1.78%
NASDAQ 7,527.54 7,408.14 -1.59%
The sectoral indices that FTSE 100 7,178.60 7,104.31 -1.03%
outperformed were led by the DAX 11,457.70 11,457.84 0.00%
Small-Cap index. The BSE CAC 40 5,215.85 5,231.22 0.29%
Small-Cap zoomed by 7.48 per Hang Seng 28,816.30 28,228.42 -2.04%
cent, followed by the power Nikkei 21,425.51 21,025.56 -1.87%
sector, with the BSE Power Shanghai 2,804.23 2,969.86 5.91%
index surging by 5.69 per cent.
The BSE Mid-Cap was up by 4.48 per Performance Of Indices Net Investment In Equity Markets (`/Cr)
cent, Auto was up by 3.89 per cent, while 22nd Feb 08th Mar Gain/Loss Date FIIs DIIs
Metal and Bankex were up more than 3 Indices 08-Mar-19 1074.1 -470.7
2019 2019 (%)
per cent during the fortnight. FMCG and Sensex 35,871.48 36,671.43 2.23% 07-Mar-19 1386.93 -925.46
Realty indices gained 2.23 per cent and Nifty 10,791.65 11,035.40 2.26% 06-Mar-19 -1869.56 -878.45
0.78 per cent, respectively. The BSE IT Mid-Cap 14,169.74 14,804.21 4.48% 05-Mar-19 4165.21 580.86
index was the only index in the red, down Small-Cap 13,517.71 14,529.06 7.48% 01-Mar-19 864.48 117.05
by 0.52 per cent. Auto 18,608.14 19,332.23 3.89%
28-Feb-19 -415.75 -5240.62
Bankex 30,091.92 31,086.39 3.30%
27-Feb-19 1662.5 66.81
What is most pleasing about the recent FMCG 11,344.28 11,597.56 2.23%
market rally is that the foreign 26-Feb-19 1801.69 -720.27
IT 15,110.63 15,032.21 -0.52%
institutional investors (FIIs) are back in Metal 10,669.97 11,025.33 3.33% 25-Feb-19 12132.1 -1746.4
hordes. The fortnight’s institutional Power 1814.02 1,917.27 5.69% 22-Feb-19 -337.61 838.88
trading data indicates that the FIIs were Realty 1,817.78 1,831.99 0.78% Total 20464.09 -8378.3

8 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

Recommendations Equity
It recently set up a 5,000 MT freeze dried
unit in Andhra Pradesh. This is likely to
CCL Products (India) Ltd propel sales growth. The new plant,
which is likely to commence operations
in Q1FY20, will have tax benefits for five

CONCOCT A BREW OF REFRESHING RETURNS WITH CCL years. It is at a proximity of 160 km from
the Chennai port, ensuring low logistical
costs. he strong order backlog is expected
to ensure nearly 50 per cent capacity
HERE IS WHY utilisation going forward. An upcoming
Steady and resilient margins capacity of 3,500 MT in Vietnam is
expected to lead to volume growth in
Robust business model FY21.

C
Sustainable growth prospects
CL Products (India) Ltd is
one of the largest instant
coffee manufacturers in the
world. Over the years, CCL
has effectively developed
more than 1,000 blends of coffee and is
capable of preparing blends specific to
customer requirements. The company
imports 85 per cent of its raw materials
Best of LAST ONE Year
for its India operations and exports 90
Name of Reco Exit/CMP Absolute Annual
per cent of finished products. As a result, Company Price Price (`) Gains Returns
fluctuations in exchange rate do not have (`) (%)
a material impact on its financials. Balkrishna Ind. 1079.8 1317.85
Tata Metaliks 667.8 826.2
On the consolidated financial front, total Colgate-Palmolive (I) 1051.65 1231
income from operations stood at PFC 122.6 147.6
`234.08 crore in Q3FY19 as against Symphony 1429.8 1672
`273.99 crore in Q3FY18, thereby falling
14.57 per cent. EBITDA plummeted to FY14-18. Over the last 10 years, CCL’s
`54.31 crore in Q3FY19 from `64.47 sales, EBITDA and net profit grew at a
crore in Q3FY18, posting a drop of 15.76 CAGR of 10 per cent, 18 per cent and 26
per cent. Net profit spiralled down to per cent, respectively, due to improving
`32.61 crore in Q3FY19 from `40.42 capacity utilization.
crore in Q3FY18, thereby sinking 19.32
per cent. EPS dropped to `2.45 in The company boasts a pass-through
Q3FY19 from `3.04 in Q3FY18, posting mechanism which safeguards it against
a fall of 19.41 per cent. the volatility in the prices of raw coffee,
thereby ensuring margin protection. It
Its ROE surged from 10 per cent in FY09 operates a business model which is
to an average of 22 per cent during difficult for its competitors to replicate.
Over the last 15 years, the company has
scaled up its coffee processing capacity by
approximately seven times. Its EBITDA
margins are resilient and stable because it
procures raw materials only upon
receiving orders. Despite green coffee
prices being at historical lows, CCL’s
margins are unlikely to take a hit in the
event of a recovery in green coffee prices.
Furthermore, over the last 10 years, the
company has relied modestly on leverage
to achieve growth, has refrained from
(%) diluting equity and has maintained
22.05 417.79 healthy return ratios.
37.93 89.89
17.5 77.78 The company has spent an additional
20.39 64.96 `700 million towards infrastructure
16.94 64.19 development for future expansions. At its
Indian operations, the company aspires
to increase its products in favour of small
packets vis-à-vis bulk. As such, it is
setting up a packaging capacity of 3K-5K
tonnes. The realisations awarded by small
packets are 5-10 per cent higher as
compared to bulk. It is also setting up
5,000 tonnes of agglomeration capacity
to improve the quality of coffee; thereby
fetching realisations which would be
higher by 5-10 per cent. Thus, we
recommend our reader-investors to BUY
this stock. DS

Note: The stocks recommended under this section are fundamentally strong stocks. However investors are advised to wait for the correct opportunity
to enter these stocks considering the market sentiment right now.
Monthly Stock Market Returns Shareholding Pattern Last Five Quarters (`/Cr)
15.00
BSE Code: 519600
CMP: `299.45 FV: `2 as of Dec. 2018 Dec-18 Sep-18 Jun-18 Mar-18 Dec-17
10.00
BSE Volume: 5,453 Total Income 234.08 290.76 294.45 320.88 273.99
5.00
Date: 12/03/2019 Promoters 45.28
Other Income 0.91 1.35 0.33 1.63 0.41
0.00
Public 54.72 Operating Profit 55.22 77.62 64.02 72.81 64.87
Apr-18

Feb-19
Sep-18

Nov-18
Jun-18

Dec-18
Jul-18
Mar-18

Mar-19
Oct-18
Aug-18

Jan-19
May-18

-5.00
Interest 3.03 3.29 2.40 2.11 1.85
Others --
-10.00 Net Profit 32.61 47.18 39.46 47.25 40.42
-15.00 Total 100 Equity 26.61 26.61 26.61 26.61 26.61

10 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

Recommendations Equity
as from the sectors of e-commerce and
Music Broadcast Ltd. (MBL) auto. MBL also witnessed an increase in
inventory utilisation of around 53 per

FINE-TUNE YOUR PORTFOLIO WITH MUSIC BROADCAST

cent in the Phase III markets. MBL
implemented price hikes as the
utilisation hit 60 per cent. In Q3FY19,
the government ads increased by 33 per
cent. We can certainly expect an upsurge
HERE IS WHY in the political and government spends
as well as increasing utilisation of the
Strong quarterly performance
new stations. Moving forward, there is a
Consistent double-digit growth potential scope for margin improvement
to as high as 45 per cent in matured
Positive growth prospects

M
usic Broadcast Ltd.
(MBL) owns and
operates FM radio
stations under the
Radio City brand name PRICED SCRIP
in 39 cities in India. It also operates
51 web radio stations in 10 languages. In Best of LAST ONE Year
addition, it operates a ‘Planet Radio City’ Name of Reco Exit/CMP Absolute
mobile app that plays various stations, Company Price Price (`) Gains
such as Radio City Freedom. It is a (`) (%)
subsidiary of Jagran Prakashan Limited. National Fert. 61.30 78.00 27.24
Gufic BioSci. 78.70 95.10 20.84
Despite making investments in new Jamna Auto Ind. 77.15 96.75 25.41
stations, the company has been delivering Virinchi 88.00 110.00 25.00
double digit growth in terms of revenue, Amines & Plasti. 68.00 81.00 19.12
EBITDA and PBT since FY16. Its PBT is
growing 3x faster than the revenue. The increase of 45 per cent. PBT margin was
company reported revenue of `87 crore reported at 28.7 per cent in Q3FY19 as
in Q3FY19 as against `76 crore in against 22.6 per cent in Q3FY18, thereby
Q3FY18, posting a growth of 14 per cent. posting a growth of 607 bps.
EBITDA stood at `29 crore in Q3FY19 in
comparison to `23 crore in Q3FY18, Thus, it is clear that the company has
thereby rising 23 per cent. As a result, showcased sustainable operating
EBITDA margin stood at 32.9 per cent in performance despite facing
Q3FY19 versus 30.6 per cent in Q3FY18, macroeconomic headwinds. Q3FY19 was
thereby increasing by 220 bps. The the highest-ever performing quarter for
margin was slightly pressured on account the company. The recovery in growth was
of higher A&P spends. Consequently, driven by 11 per cent rate hike in the
PBT rose to `25 crore in Q3FY19 from legacy markets, festive advertising and
`17 crore in Q3FY18, registering an contribution from the government as well
stations. The company is focused on
geographical expansion over multi-
frequency expansion. It boasts a healthy
balance sheet with `2 billion in net cash,
in addition to robust return ratios and
steady cash flows.
Recently, the company partnered with
Noida Metro Rail Corporation to
Annual
provide passengers with a distinctive
Returns in-transit entertainment experience.
(%) Through this initiative, the company is
350.22 exploring new avenues of entertainment
288.55 in emerging fields such as the next
254.10 generation mobility of hyperlocal
225.00 experiences. Previously, the company
167.88 had successfully partnered with
Lucknow Metro Rail Corporation to
offer specialised content across eight
Lucknow Metro stations. The
management commentary states that it
expects MBL’s revenues to grow at 11 per
cent CAGR over FY18-23 on the back of
50:50 blend of price increase and
utilisation. Also, its FCF generation is
forecasted to triple from `0.4-0.5 billion
p.a. in FY18 to `1.2-1.3 billion in FY23E.
EBITDA margins are likely to improve
on the back of enhanced utilisation and
improved pricing. By virtue of these
factors, we recommend our reader-
investors to BUY this stock.

Note: The stocks recommended under this section are fundamentally strong stocks. However investors are advised to wait for the correct DS

opportunity to enter these stocks considering the market sentiment right now.
Monthly Stock Market Returns Shareholding Pattern Last Five Quarters (`/Cr)
0 as of Dec. 2018 Particulars Dec'18 Sep'18 Jun'18 Mar'18 Dec'17
Oct-18
Aug-18
Apr-18

Feb-19

Apr-19
Sep-18

Jan-19
Nov-18
May-18

May-19
Jun-18

Dec-18

Jun-19
Jul-18

Jul-19
Mar-18

Mar-19

-20
Total Income 87.02 80.14 75.68 75.93 76.18
Promoters 73.65
Other Income 4.46 3.6 2.42 5.4 4.33
-40
Public 26.35 Operating Profit 33.06 30.16 28.48 32.76 27.65
-60
BSE Code: 540366
CMP: `60.50 FV: `2 Interest 1.37 1.38 1.38 3.37 3.92
BSE Volume: 2458 Others --
-80
Date: 12/03/2019 Net Profit 16.38 13.38 13.5 16.26 11.88
-100 Total 100 Equity 55.31 56.33 57.05 57.05 57.05

12 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

Recommendations Equity
KARNATAKA BANK CMP - `124.90

BSE CODE Volume Face Value Target Stoploss

532652 320970 `10 `140 `115 (CLS)

K
arnataka Bank provides personal Scrip’s Movement
and business banking products
130.00

and services in India. As of Febru- 125.00

ary 2019, the company operated through 120.00

a network of 838 branches. The Karna- 115.00

taka Bank Limited is headquartered in 110.00

Mangalore, India, and was founded in 105.00

1924. The company is a regional private 100.00

sector bank. It operates in four segments, 12-Feb 22-Feb

2019
06-Mar 12-Mar

namely treasury, corporate/wholesale

Last Seven Days’ Volume Table
banking, retail banking and other
banking operations. The company (No. of Shares)
maintained its loan growth momentum Days Volume
at 17 per cent YoY during Q3FY19 led by 01-Mar-19 1,11,461
corporate segment. However interest 05-Mar-19 1,62,685
income reversal restricted NII growth at 06-Mar-19 1,51,474
8 per cent YoY during Q3FY19. The gross 07-Mar-19 1,33,015
non-performing assets (GNPAs) 08-Mar-19 73,245
improved to 4.45 per cent during 11-Mar-19 3,38,222
Q3FY19 sequentially from 4.66 per cent. 12-Mar-19 3,20,970
Lower credit costs improved profitability the bank is likely to witness improvement
The scrips in this to `140 crore during Q3FY19. Given low on asset quality front. We recommend a
column have been stress in book at 2.1 per cent of advances, BUY.
recommended
TATA SPONGE CMP - `764.15
with a 15-day investment
horizon in mind and BSE CODE Volume Face Value Target Stoploss
513010 17520 `10 `870 `710 (CLS)
carry high risk. Therefore,

T
investors are advised to Scrip’s Movement he company produces sponge iron by
direct reduction method of iron ore
take into account their risk
780

and is engaged in generation of power

appetite before investing,
760
from waste heat. The company operates in
740

as fundamentals may two segments namely, manufacturing of

720
sponge iron and generation of power. The
or may not back the 700
company uses Tisco Direct Reduction (TDR)
recommendations. 680 technology for the manufacturing of sponge
660 iron. The company has two power plants with
12-Feb 22-Feb
2019
05-Mar 13-Mar
a cumulative generation capacity of 30
megawatts that generate power from waste
heat. The company’s total production capacity
is 3,60,450 metric tonnes of sponge iron from
Last Seven Days’ Volume Table approximately three kilns. The company has a
(No. of Shares)
total power generation capacity of 160 million
kilo-watt hours. The company registered a 22
Days Volume
per cent YoY sales growth on account of
05-Mar-19 12,189 higher sponge iron prices and debottleneck-
06-Mar-19 12,067 ing of existing capacity to increase volumes.
07-Mar-19 27,739 The sponge iron prices have fallen in recent
08-Mar-19 12,457
months due to soft international steel prices,
11-Mar-19 6,837
which put pressure on the stock. This has
12-Mar-19 13,168
provided some valuation comfort. We
13-Mar-19 17,520
(Closing price as of Mar 12, 2019) recommend a BUY on the scrip DS

14 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

Technicals Equity
NIFTY Index Chart Analysis
Nifty breaks out of multi-month consolidation; outlook positive if Nifty trades above 11,100

N
ifty broke out the four-month Roadmap for the next 15 trading sessions
consolidation with relatively Ideas Nifty Levels Action to be Initiated Probable Targets

low volumes. Finally, it closed
above the October 2018 highs.
After four months of sideways action, it
retraced more than 61.8 per cent of the
Sept-Oct 2018 fall. The fall occurred in
just 38 days and to retrace just 62 per cent
of the fall, it took 88 days. While the
Sensex and Nifty are moving in a flat
range, the Mid-cap and Small-cap indices
completed their 13-month correction and
are moving upwards. The overall market
breadth is positive for the last few weeks.
The advance-decline ratio improved to
4:1. Last week, stocks from the mid-cap
Resistance for the medium term 11200-11267
Trading above 11110 on the on monthly closing basis
11300 - 11400
would give further momentum to the bulls.
Close below 10850 on the weekly chart would change
Support for the medium term 10985 - 10850 10600 and lower
the trend and trigger a retreat.
broader market trends are improving the -DI, but it is still turning down on
with selective buying. the weekly chart. The Commodity
Channel Index, which indicates tops
Technically speaking, Nifty broke out of and bottoms much earlier than any
the four-month long sideways action. other indicator, reached the highs of
Now the question is whether or not this January 2018 on the weekly chart. The
breakout will sustain. As we mentioned price-earnings (PE) ratio, which is a
earlier, any such long consolidation fundamental factor and determines
breakout must have a faster follow-up the valuation of the market, is almost
retracement action with supporting at life-time highs. The derivative data

universe gained 5-30 per cent and from
the small-cap universe, almost 50 per
cent of the stocks rose between 5-40 per
cent. The small-caps and mid-caps have
outperformed the large-caps. One
expects this rally to extend to the
large-caps with higher gains. Still, the
participation among large-caps is limited.
At least nine stocks in Nifty touched
52-week high or reached near to that
level. 11 Nifty stocks rose by more than
10 per cent. These statistics show that the
volumes. Let us wait and see whether this
happen or not. The Nifty closed above
the upper Bollinger band, which shows
the overbought condition. Generally,
whenever the price moves above the
upper Bollinger band, it should then
move within the band. On the other
side, the stochastic oscillator is extremely
in overbought condition since last two
days. There is no divergence visible in the
RSI. It is still in the bullish zone. With
today’s breakout, ADX just moved above
like Put-Call ratio (PCR) is at 1.46, which
indicates the overbought condition.
With these technical pieces of evidence,
let us not bother about the major index
structure and better focus on
opportunities available in the broader
market. At the same time, wait for the
major indices to close previous day's
lows for a bearish view. As long as Nifty
trades above 11,100, be positive on the
overall market.

16 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

Technicals Equity
STOCK RECOMMENDATIONS

RELIANCE INDUSTRIES ................ BUY ................. CMP `1329.85

BSE Code : 500325 Target 1 .... `1410 | Target 2 ..... `1435 | Stoploss....`1233(CLS)
Reliance Industries is a diversified company engaged in
oil and gas, petroleum refining, marketing, digital
service and retail segments. It has reported the double-
digit growth for nine consecutive quarters. Meeting
most CANSLIM criteria, its price strength is 89 and EPS
strength is reasonably good at 74. The stock closed near
life-time high on Monday with reasonably good
volumes. It is meeting all Mark Minervini’s trade set-up
rules for accumulating the stock. The RSI is extremely
bullish as it is forming higher highs and higher lows.

Other momentum indicators also suggest that the rally

will continue further. The MACD is much above the
zero line and above the signal line for eight days.
Trading above all are the short and long term moving
averages. The ADX is turning up and above 23 with
correlation of -DI much below the +DI and ADX. The
indicator which shows the cycles is also showing that
the top is not yet done.

IPCA LABORATORIES .................. BUY ..................... CMP `923.55

BSE Code : 524494 Target 1 ..... `1000 | Target 2 ..... `1050 | Stoploss....`850 (CLS)
The stock closed at life-time high on Monday. Its price
strength is superior at 90. Huge accumulation is
happening in the stock, with volumes consistently
above the 50-week average. It is meeting 75 per cent of
Warren Buffett’s investment rules. Its revenue in quarter
ended December 31, 2018, grew by 10.3 per cent and
net profit rose by 51.7 per cent. Consistent EPS and
sales growth was seen since the last 7 quarters. The
total institutional holding increased by 0.28 in the
recent quarter.

Technically, it is looking very strong on all parameters.

The RSI is in a strong bullish zone and meeting the
Cardwell’s range shift rules. The MACD is above zero
line and signal line for the last three weeks. The ADX is
at a strong level, and -DI is much below the ADX and
+DI. The stock actually came out of the 9-week flat base
pattern. Among pharma stocks, this is one of the stocks
that made life-time highs. DS

(Closing price as of Mar 12, 2019)

*LEGEND: n EMA - Exponential Moving Average. n MACD - Moving Average Convergence Divergence n RMI - Relative Momentum Index
n ROC - Rate of Change n RSI - Relative Strength Index
Disclaimer : Above recommendations are based on various technical parameters and any fundamental input has not been considered for the recommendations. Follow strict stop loss for the recommendation.

18 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

Analysis
Ramco Cements
CEMENTING FUTURE GROWTH
WITH HIGH CAPEX
R
Ramco Cements enjoys a strong
presence is southern and eastern
India. The company has a high
presence in the retail segment and
enjoys premium position in the
southern market. The company
enjoys strong brand recognition
among IHB customers because of
its deep rural penetration in Tamil
Nadu and Kerala compared to its
competitors.
20 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019
Equity
Ramco Cements is the
flagship company of the
Ramco Group, a well
-respected business group
in South India. The
company is the country’s
fifth-largest cement
producer. Ramco Supergrade is
one of the most popular cement brands
in South India. The company also
produces ready mix concrete (RMC) and
dry mortar products and also operates
one of the largest wind farms in the
country.
The company’s main product is Portland
cement and is manufactured in the
company’s eight production facilities
that includes integrated cement plants
and grinding units with a current total
production capacity of 16.45MTPA (out
if which satellite grinding units capacity
is 4MTPA.)
Ramco Cements enjoys a strong
presence is southern and eastern India.
The company has a high presence in the
retail segment and enjoys premium
position in the southern market. The
company enjoys strong brand
recognition among IHB customers
because of its deep rural penetration in
Tamil Nadu and Kerala compared to its
competitors. The company’s brand is
considered a Tier-1 brand in Tamil Nadu
and Kerala, whereas it is considered a
Tier-2 brand in Andhra Pradesh. The
company has a new capacity coming up
in Kurnool district of Andhra Pradesh
which will take its grinding capacity to
18.65MT in South India.
Industry
India is the second-largest cement
producer in the world behind China.
India’s cement industry is a vital part of
the company’s economy and provides
employment to over a million people,
DSIJ.in
both directly or indirectly. Indian cement industry has
attracted huge investments both from Indian and foreign
investors ever since its decontrol in 1989.

The housing and real estate sector is the biggest demand driver
for the cement industry and accounts for about 65 per cent of
the total consumption in India. Public infrastructure is also a
key demand driver accounting for 20 per cent of total
consumption, followed by industrial development at 15 per
cent.

India’s cement production capacity stood at 502 million tonnes

per annum (MTPA) in 2018. The industry is currently
producing 280MT in order to meet the domestic demand and
5MT for exports requirement.

India’s cement industry is dominated by a few players with the

top 20 companies accounting for 70 per cent of the total
cement production in the country. 210 large cement plants
account for an installed capacity of 250 million MT and smaller
plants account for the rest. Of these large 210 plants, 77 are
located in Tamil Nadu, Andhra Pradesh and Rajasthan.

The government's initiatives like 'Housing for All' by 2022,

combined with opportunities in dedicated freight corridors,
ports and other infrastructure projects will aid cement demand
in the country. The cement industry is largely regional and its
growth prospects depend on consumption demand in key
micro-markets, as the addition of capacity pan-India makes it
difficult to predict national pricing trends.

The industry is expected to add about 65MT of capacity in the

next two years which underlines the importance of regional
leadership. The companies with strict cost discipline, healthy
balance sheets and judicious expansion plans stand to benefit.

Post Expansion Capacity Mix

1%
4% Tamil Nadu
Andhra Pradesh
9%
West Bengal
Odisha
47%
Karnataka
39%

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 21

Analysis
Growth Drivers
South India, from where Ramco
Cements gets 70 per cent of its volumes,
is expected to see an uptick in cement
demand aided by irrigation projects in
Telangana, Andhra Pradesh, Amravati
development, improved sand availability
in Tamil Nadu and Kerala. These
developments augur well for the
company.
The company recently announced one of
its biggest capital expenditure
programmes worth `3430 crore in a
greenfield cement unit in Andhra
Pradesh and in brownfield expansion
across two states over 24 months. These
capacity increases will take the total
production capacity of the company to
10MTPA in the state, making it the
largest cement producer in the state. The
capex will be funded by both internal
accruals and debt. When evaluated in the
context of demand in southern and
eastern regions, Ramco Cements’
capacity additions have been in the
regions which do not have concerns of
oversupply.
Over the next two years, the company
plans to add 4.5MT capacity, which
would take its total potential output to
21MT. Almost two-third of the total
capacity is integrated, meaning the plant
is involved in the entire cement value
chain, from mining to cement bagging.
For an integrated unit, the funds
required to put up a greenfield factory is
US$120 for each tonne of capacity. Of
the total 4.5MT capacity addition,
Ramco will add 2MT in the eastern
region and the balance in Andhra
Pradesh. The company is currently
supplying cement to Odisha via sea.
However, the company will commission
a new grinding unit in Odisha of 1 MT
which will help reduce freight costs.
Company Name Latest Market Cap
The India Cements Ltd. 2863.45
The Ramco Cements Ltd. 16233.60
Ultratech Cement Ltd. 106405.55
Data as of Mar 1, 2019
22 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019
Equity
The Ramco Cements Ltd.
The Pradhan Mantri Awas Yojana BSE Code : 500260 CMP - `689.10
(PMAY), the government’s low-cost
housing scheme, has seen only Particulars Amount (` Crore)
Net Sales 4784.49
approximately 15 per cent of the homes
being built in the southern and eastern % Change 8.63%
region. If this number were to increase, Operating Profit 1019.98
Ramco Cements would be in an % Change -9.10%
advantageous position. Net Profit 449.11
% Change -22.77%
The input costs like pet coke and diesel Equity 23.56
have reduced from their highs and the EPS (`) 19
company will also benefit from the axle FV (`) 1
load norms with more than 40 per cent P/E (x) 36.09
of the company’s volumes being
Dividend Yield (%) 0.43
despatched via roads. This is expected to
Book Value (`) 182.41
benefit Ramco by approximately `108/
tonne. The prices of cement are expected (Trailing Four Quarter Data) Data as of Mar 1, 2019
to improve in South India by `35-50 per
bag, which should lead to margin costs could hurt margins for the
improvement. The company has a clean company and industry. Inaccurate
balance sheet with a debt-equity ratio of estimation of demand and delay in the
0.3 having reduced its debt by 50 per cent beginning of private capex cycle could
in the last three years. lead to oversupply.
Challenges On March 1, Ramco Cements pledged 21
The cement industry will have to gear up lakh shares to the disappointment of
to meet new challenges in the future, shareholders. Also, if a new government
such as upgrading its technologies for comes to power in the upcoming general
carbon capture and storage. The GHG elections, any adverse policy change
emissions cannot be brought down to could hamper the company’s growth
targeted level by only making blended prospects.
cement.
Financials
Worldwide, the cement industry is facing On a standalone basis, Ramco Cements
challenges in conserving energy and reported a total income of `1216.99 crore
material resources. The cement for the quarter ended December 2018, up
companies are striving to increase energy 14.64 per cent from `1061.52 crore in the
efficiency and use of alternative raw corresponding quarter last year. This was
materials and fuels. In a modern cement on account of increased sales volume of
plant, 60 per cent of the CO2 emitted by 27.47 lakh tonnes compared 22.74 lakh
cement plants is due to limestone, 30 per tonnes a year ago. The company’s net
cent from combustion of fuels in the kiln profit for the quarter ended December
and the remaining 10 per cent from 2018 stood at `101.07 crore, as against
other downstream plant operations. `122.74 in the same period last year. The
EBITDA margin for the quarter came in
Any unexpected increase in raw material at 17.7 per cent, registering a decline of
Peer Comparison-Valuation
TTM PE(x) ROA (%) ROCE (%) EV/EBITDA (x) Total Debt/Equity(x)
43.10 0.64 5.42 10.27 0.61
36.09 7.87 16.26 15.97 0.28
57.56 4.48 11.52 18.97 0.74
DSIJ.in
 The industry is expected to add
about 65MT of capacity in the next
two years which underlines the
importance of regional leadership.
The companies with strict cost
discipline, healthy balance sheets
and judicious expansion plans stand
to benefit.

Peer Comparison- Historical Returns (%)

Company Name 1 3 6 1 Year 3 Years 5 Years
Month Months Months
Orient Cement 5.38 -4.98 -35.81 -53.64 -45.53 96.57
The India Cements 13.44 -1.44 -26.87 -41.20 32.47 66.94
The Ramco Cements 14.52 14.08 -0.01 -7.09 88.85 288.33
Ultratech Cement 11.40 -2.97 -13.33 -6.64 34.18 110.58
Data as of Mar 1,2019

460 bps YoY from 22.3 per cent.

On a QoQ basis, the company’s total income came in at

`1216.99 for the quarter ended December 2018, registering a
growth of 2.31 per cent from `1189.45 crore in the previous
quarter. The company’s net profit declined 11.54 per cent to
`101.07 crore in the quarter ended December 2018 from
`114.47 crore in the previous quarter.

On the annual front, the company reported consolidated sales

of `4456.48 crore in FY18 as against `4007.27 in FY17,
registering a growth of 11.20 per cent. The company’s
consolidated total income came in at `560.22 crore, down
14.36 per cent from `654.21 crore in FY17. The PBT came in at
`791.28 crore, down 7.65 per cent YoY from `856.91 crore.

Conclusion
Ramco Cements has strong presence in the southern region
and has a healthy balance sheet and a track record of good
operational efficiency. The government's initiatives like
'Housing for All' and increased infrastructure spending augur
well for the cement industry. The prices of cement are expected
to improve in South India by `35-50 per bag, which should
lead to margin improvement for the company.

Ramco Cements huge capacity addition in Andhra Pradesh

and deep rural penetration in Tamil Nadu and Kerala are
positive signs for growth to return. The recovery of PSU banks
after their NPA provisioning will help revive private capital
expenditure. By virtue of the above factors, we recommend a
HOLD.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 23

 Our research-backed recommendations have been our greatest strength

Our Call Tracker

over the past so many years. In fact, helping investors book profits has
been the very essence of our existence. Here is a detailed guide on the
recommendations readers to get a quick insight on what to do next.

CHOICE SCRIP
RECOMMENDATIONS UPDATE FOR THE LAST ONE YEAR
Recom. Recom. Exit Exit Return
Company Name
Date Price Date Price (%)
12-Oct-17 Time Technoplast 198.40 12-Oct-18 127.05 -35.96
26-Oct-17 Esab India 865.30 07-Sep-18 947.20 9.46
09-Nov-17 CCL Products India 319.65 09-Nov-18 290.00 -9.28
23-Nov-17 Bajaj Finance 1763.85 09-Apr-18 1933.60 9.62
07-Dec-17 Minda Industries 1103.85 23-May-18 1292.00 17.04
21-Dec-17 J B Chemicals & Pharmaceuticals 325.00 07-Sep-18 345.40 6.28
04-Jan-18 Kalpataru Power Transmissions 481.35 04-Jan-19 381.50 -20.74
18-Jan-18 IFB Industries 1460.10 18-Jan-19 889.00 -39.11
01-Feb-18 Eveready Industries India 415.10 01-Feb-19 216.70 -47.80
15-Feb-18 Essel Propack 139.66 15-Feb-19 105.55 -24.43
01-Mar-18 Colgate-Palmolive (India) 1051.65 21-May-18 1231.00 17.05
15-Mar-18 Escorts 854.20 29-May-18 940.45 10.10
28-Mar-18 Balkrishna Industries 1079.80 16-Apr-18 1317.85 22.05
12-Apr-18 Va Tech Wabag 508.20 Open -35.91
26-Apr-18 Blue Star 785.40 Open -15.65
10-May-18 Natco Pharma 797.75 Open -26.46
24-May-18 Tata Chemicals 717.20 06-Feb-19 595.00 -17.04
07-Jun-18 Tata Sponge Iron 1088.65 Open -29.98
21-Jun-18 Bajaj Auto 2833.80 03-Dec-18 2733.15 -3.55
05-Jul-18 KEI Industries 406.35 Open 3.61
18-Jul-18 Ashoka Buildcon 147.85 Open -5.48
02-Aug-18 Take Solutions 204.05 Open -33.10
16-Aug-18 Trent 363.00 Open -0.83
30-Aug-18 Finolex Industries 602.65 Open -9.81
12-Sep-18 Chambal Fertilisers & Chemicals 158.65 Open 6.02
27-Sep-18 ITD Cementation India 125.00 Open 6.28
11-Oct-18 V Mart Retail 2032.20 31-Oct-18 2400.60 18.13
25-Oct-18 Escorts 572.65 02-Nov-18 685.90 19.78
05-Nov-18 Crisil 1495.00 03-Jan-19 1645.00 10.03
22-Nov-18 Indian Hotels Company 134.30 12-Dec-18 148.00 10.20
06-Dec-18 Tech Mahindra 725.25 08-Feb-19 817.00 12.65
20-Dec-18 Bandhan Bank 556.00 Open -6.79
03-Jan-19 Godrej Consumer Products 807.65 Open -9.99
17-Jan-19 ITC 296.00 Open -0.27
31-Jan-19 Biocon 649.40 Open -3.59
14-Feb-19 Shoppers Stop 500.20 Open -4.72
28-Feb-19 Titan Company 1037.70 Open 3.59

24 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

Interview

 India is in a
sweet spot
to take advantage
of demographics
and technology
Ashishkumar Chauhan
MD & CEO, BSE

26 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 A champion administrator and a regulator at heart
is what it takes to lead the Asia’s oldest and one of
the largest & fastest stock exchanges in the world!

Stock exchanges and the indices are perceived to be the economic barometers of any country. There is no better
person than the man with many talents, who is heading the Asia’s oldest stock exchange and one of the world’s
biggest stock exchanges, to talk about the prospects for the Indian economy. The champion administrator that he is,
Mr. Ashish Chauhan is a regulator at heart, whose only aim is to facilitate wealth creation for the masses in India.
In this exclusive interview with Dalal Street Investment Journal, Ashish Chauhan talks at length on various topics
including the growth strategy that has worked for the BSE and the right approach that investors should adopt while
participating in the markets. With an open mind, Mr. Chauhan talks candidly about the hits and misses of the BSE and
the direction in which the oldest and the fastest stock exchange is headed in coming years.
With so many things happening at a scorching pace in the financial world, it is indeed remarkable to stay on top of all
the issues that can impact the financial well-being of so many investors. Indeed, the alacrity with which the
regulatory job is done at BSE is what allows millions of investors in India to repose their trust in the financial system.
With BSE comes the reputation and the legacy, with Ashish Chauhan comes the competence, vision, strategy and
execution. Investors can definitely listen to his advice and feel safe investing and trading on the BSE.

What steps were taken in
FY19 by the BSE management
to strengthen its position as an
exchange of choice in India
and expand across borders.
There were some attempts and
also some strategic alliances
that BSE has done
internationally?
BSE will continue to provide support on
technology and operations to any
exchange worldwide that wants to take
help from BSE or expertise that BSE has
developed. But our main focus is
basically to run incident-free, scandal-
free stock market and help India do
capital formation, create wealth and raise
funds for the companies and that will
continue to remain our focus.
What tools, i.e. data
analytics-based solutions,
are being used at BSE to
detect and mitigate potential
risks of market manipulation
and rumours?
First, we do a lot of investor awareness
seminars and almost 4,000 investor
seminars through television and
magazine like Dalal Street Investment
Journal, we inform investors the "do's
and dont's" of investments. Specifically,
the 'dont's' like don’t believe in tips, don’t
believe in whatsapp messages, don’t
believe in SMSes, study yourself, it is
your hard earned money, and ultimately
you are responsible for that.
We also ensure that the information
related to companies is tracked on a
real-time basis across the world. We use
social media platforms, information
coming out of them, websites of various
entities, including news, television
channels and many other areas to see
how the information about the
companies that is not reported on the
exchange is available. Through the use
artificial intelligence, questions are asked
automatically to the companies about
whether they are aware of any such
information and whether it is true or
not. So those companies have to then
clarify and whenever we ask a company,
usually we also put it on the website so
that everyone knows that we have asked
this to the company. So, we provide
education to investors, but we also keep
track of the company related news that is
not reported on the exchange but which
the company is supposed to report. We
have also created a website for the
companies to report their material
information and periodic information,
due to which the difference between the
time they report and the time it is
displayed has come down to less than a
second. It is available 24/7 so that
anytime a company wants to report any
good or bad information, it is available
to the market instantaneously. These are
the kind of steps we have taken as we
think ultimately information is very, very
important for the investors to take
correct decisions and timely information
on the exchange platform is what that
makes us much more robust. We have a
mobile application of BSE beta, which
has been downloaded more than a
million times and we have almost a
million visitors on the BSE website, so it
is 100 million page views. It is basically
like most other countries where we
provide these data for free. These are all
easy to see and even in the order book,

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 27

Interview
everything is provided so that they know
what is happening in the market and if
they want to buy or sell, at what rate they
may be able to do that.
Is it true that BSE
management is focusing on
development of indigenous
solutions? How is this
helping the BSE? Are these
tools developed in-house?
Most of the technology BSE uses has
been developed with the help of other
third party vendors like TCS and some
other vendors. But, broadly speaking,
BSE’s own employees are also involved.
BSE has a large IT team and IT
companies work under it as a part of the
subsidiaries. So, many a time, skills may
not be available readily or it may not
have the number of people required at a
point, so you may have to go outside. But
our endeavour is to make a largely open
source-related softwares which are easy
to maintain and operate and lower in
terms of licensing fees and maintenance
fees, etc.
Last time you had said you
are more of an IT company
running a stock exchange. Is
it still valid or has it
changed?
It still remains valid because the
technology has taken the forefront in the
entire financial markets, so we are going
to continue to be top-of-the-line in our
technology.
How has the product and
service diversification
worked for BSE in the last
one year?
Our mutual fund platform has become
very large now. Almost 20 per cent of the
net inflows into the MF industry and 40
per cent of the new customers in the
mutual fund industry are coming
through BSE. So that way, BSE Star MF
has become very large over the last one
year and has been well-accepted.
On the other side, the insurance
28 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019
distribution platform has not started
because we are still awaiting the approval
from the regulator IRDA for that
particular venture, so when the approval
comes, we will do that.
We have also launched commodities
derivatives trading in BSE. We are seeing
good traction in cotton trading. We have
gained substantial market share within
12 days of launch, so those are the kind
of successes BSE has got in recent times.
Even for the sovereign gold bonds, we
have started providing those facilities to
the investors. We have also started
providing bond distribution service to
the government. We have also become
largely corporate bond distribution with
almost 70 per cent market share this
year. So these are huge achievements
over the last one year.
In the coming year, we plan to launch
more commodities, both agriculture and
non-agriculture commodities. The
introduction of inter-operability of
clearing corporation could be a game
changer. It will allow trading on two
different exchanges, but settle with only
one clearing house and pay only one
margin and settle only once. We will
improve the ease of doing business
immensely. SEBI has announced June 1
to be the deadline, so those are the kind
of changes we are currently doing in our
technology.
How is the focus on
increasing market share of
derivative products paying
off for the BSE?
In currency derivatives, we have become
a large section in India. In the agriculture
commodities that we have launched,
cotton has again become very large. In
equity derivatives, we have not been
particularly successful.
Based on the volumes, value
of trades executed on the
trading platform, number of
active traders in the market,
the number of new listings
and the amount of capital
raised through such listings,
how will you evaluate BSE's
performance on these
parameters?
We have had almost the largest number
of brokers on the BSE platform compared
to any other exchange. We are now
almost 21,000-plus IFAs as BSE members
on the mutual fund side, which is also a
very large number on a direct basis and
almost 200,000 indirect people
distributing mutual fund product on the
BSE. So, we have seen a large uptick in the
last one year in terms of people who are
active and also new members wanting to
become members of the BSE because of
the recent success we have had.
BSE StAR MF platform has
turned out to be a huge
success. What triggered the
popularity of BSE MF StAR
platform? What goals have
you set for this platform?
Basically, when investors trade on stocks
or derivatives, the brokers usually decide.
The investors don’t decide. That is, if a
broker has kept some margin somewhere,
they decide to trade there. Similarly, if a
broker is connected to BSE Star MF
platform or BSE IPO, and he finds it
easier to do it that way, then he will push
his orders in the BSE Star MF. In equity
derivatives, we missed the bus. It was
allowed in 2002, but we were not there for
10 years, so it is becoming difficult to
bring back the volumes. But in terms of
MF, both the exchanges started it almost
at the same time. BSE started later there
also, but because of the superior
technology, BSE has been able to connect
to most brokers and most IFAs, giving
them comfort and providing services for
faster money movement, so because of
that, they prefer BSE.
What is your message to
investors, all of whom seem
to be lost since last one year?
Investment in stock market including
MF is basically a risk-based framework,
where ultimately you are investing into
partnership for a company. So, if the
DSIJ.in
We also ensure that the
information related to
companies is tracked on a
real-time basis across the
world. We use social media
platforms, information
coming out of them,
websites of various
entities, including news,
television channels and
many other areas to see
how the information about
the companies that is not
reported on the exchange
is available.
companies’ profits are expected to go up,
the prices would usually move up, or if
the profits go down, the prices would
move down. Sometimes, due to the
demand-supply of money or the
demand-supply of stocks, which moves
up or down very rapidly, then you can
see changes which are very rapid.
Otherwise overall, the stock market
investment is basically risk-based
investment and an investor should
understand its pitfalls or the risk
associated with investing in equities or
trading in derivatives. Derivatives are
highly liquid instruments and if you do
not know the details and if you do not
have the financial knowledge or
sufficient experience, it can basically
become very difficult to handle losses. So
overall, it is important to understand the
nuances of each productive trade and the
kind of risk profile you are carrying. If
you are investing in very illiquid stocks,
even if the company is doing well, the
stock may still not do well, but if you are
investing in a highly liquid company, but
if you are not able to make profit, then
you will not make much money. So there
are various ways in which you can lose
out and everyone should be aware of the
DSIJ.in
do's and dont's. After tremendous
amount of in-depth study, they may
want to invest for the long term rather
than for the short term because in the
short term, if you trade very frequently,
you end up paying a lot of brokerages
and exchange charges and a lot of taxes,
which may also lead to larger losses.
Do you belong to that camp
which suggests that the
margin money amount
should be increased to at
least twice the amount from
what it is currently. The
argument is if you take a
larger initial margin, then the
small time traders or the
small investors will shy away
from participating in
derivatives which is a
speculative activity.
Basically, the way it works in most of the
developed markets is those participating
in the derivatives markets have to get
themselves accredited. Only those net
worth investors who are accredited by
the regulator or such agencies can
MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL
participate in the derivatives market due
to their knowledge, their education and
financial wealth. Otherwise, usually it is
considered miss-selling in those
advanced markets. Even in the evolved
society which has become much richer
than India they have put restrictions
because most people don’t understand
derivatives and the concept of leverage
so well and end up losing money. So, in a
sense, the world has gone in the direction
that if you have higher risk, you have
different types of investors based on risk
profile and your education profile. You
may be allowed to invest or not be
allowed to invest, but if you still want to
participate in such risky products, it is
probably like not giving the knife in the
hand of a child. It is very similar to that.
And today, in the case of derivatives in
India, we are hugely not bad at the
ground level where so many people are
trading and potentially putting
themselves in grave difficulties. India has
to finally go through more safe approach
on selling derivatives to retail investors.
Please help us understand
why should investor should
29
Interview
prefer trading or investing
on the BSE rather than any
other stock exchange?
BSE is the oldest exchange in Asia and
one of the largest in the world. With BSE
comes the reputation.

Anytime you put buy or sell orders, BSE

does it much better. If you take the last
10-15 years, BSE has the least number of
brokers who have defaulted. Which
means investor’s money is not at risk as
much as it is with some other exchanges.
Also, BSE has the largest number of
stocks listed in the world and almost
three times larger than the nearest
exchange. So, basically, it gives you wider
choices and better information. If you go
to the BSE website, it is easier finding
information. It gives you trade
confirmation and order confirmation.
You can check your order details on the
BSE website if you want to check with
the real brokers if the prices are correct
or not. So, there are many advantages. Of
course, BSE’s technology is the fastest in
the world, so you get a faster response.
The scalability of the BSE is much better
than any other exchange and today BSE
is also allowing you to invest in bonds,
government bonds, gold bonds and
mutual funds. BSE is now the largest
mutual fund distribution platform in the
country. So, even in commodity trading,
equity trading, equity derivatives trading,
currency trading, BSE is now the largest
exchange in India. So there are many
pluses why you would like to trade on
the BSE. Also, the price differential
between the BSE and other exchange
would be minuscule, in most cases, 5-10
paise on either side, which means as a
retail investor, you are not trading in
lakhs and crores of shares. You are
trading in smaller number and you
should go for the exchange which is
highly regulated and does not have any
scandals and thus has better protection
and provides better services to the
investors and better information.
Lot more illiquid stocks are
seen on the BSE than other
exchanges. Investors do feel
these stocks are wealth
If you take the last 10-15 years, BSE has the least
number of brokers who have defaulted. Which
means investor’s money is not at risk as much as it
is with some other exchanges. Also, BSE has the
largest number of stocks listed in the world and
almost three times larger than the nearest
exchange. So, basically, it gives you wider choices
and better information. If you go to the BSE
website, it is easier finding information.
destructive. Your comments. stocks of Rs 500 crore put together.
This is a matter of past perception. The
largest number of stocks, especially in Many times, people create perceptions to
terms of value that has fallen, is actually bring down the competition, but the
available on both exchanges and actually investors need to be aware about where
traded on derivatives. If you take a they lost more money. You will realize
company that has fallen by 70 per cent in that you may have one or two anecdotal
one day or 50 per cent on another day or stories, but today you would have
30 per cent on another day, you’ll see smaller stocks which are inherently
these are larger stocks available on both illiquid, and liquidity is a function of the
the exchanges. So the amount of the size of the equity of the company. So, if
largest stocks that have gone down by the size of the equity itself is Rs 2 crore,
70-80 per cent are actually taking the you can’t be trading Rs 20 crore a day.
value, because it may have 100 stocks That’s why you consider them illiquid,
with a market cap of Rs 5 crore each. So, but if they have the growth potential,
the total market capitalisation becomes then you might like to invest. If they do
Rs 500 crore. Well, as you may have one not have the growth potential, you
stock with Rs 70,000 crore market cap should not invest. In terms of punitive
and it falls by 90 per cent, then the actions we have taken against promoters
investors wealth gets destroyed by Rs who have not complied, in the last one
63,000 crore, but it is several times larger year itself BSE has delisted more than
than say 20-30 per cent going down from 1100-1200 companies and the
Rs 500 crore. So, Rs 63,000 crore is many promoters’ shareholding not only in that

30 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

company but also other companies has
also been frozen.
So there are severe punitive actions being
taken by the BSE and the SEBI together.
Similarly, if a company’s price today is
say Rs 10, for it to go up to Rs 40 in BSE’s
excluded stocks which are considered
illiquid, it would take a minimum of one
or two years, but a Rs 10 large-cap stock
to go up to Rs 100, it would take one or
two days and then it can come down also
by that much in the same time frame. It
is basically because we get habituated to
think that way and this habit has been
created over a long period. But today,
BSE does not allow a fast price
movement in the smaller stocks.
However, in the larger stocks, fast price
movement is allowed because there are
no price bands on both the exchanges.
So, today, more wealth gets destroyed in
the larger stocks and that is what people
need to know and be aware of. At the
same time, people have 20-year-old and
30-year-old stories to tell.
How are lower circuits
helping investors? Many
investors believe they can't
exit when the lower circuits
are applied.
It is similar to going on a road having a
road divider. Otherwise, for every driver
it is a larger road if there is no road
divider. So, it is basically to ensure that
accidents don’t happen. If you allow free
movement of prices, then the prices will
move much more, including declines,
which is what we have seen in the larger
stocks. The circuit filter or price band in
the smaller stocks are much tougher and
that’s how the daily, weekly and monthly
kind of price bands work, so it doesn’t go
over a particular price. If you do not
know the company, if you haven’t studied
the company and do not trust the
company’s future, then please don’t get
involved in the company based on experts
or television or magazines or newspapers.
If you have trust and you are a long term
investor, then you can get involved in any
company, and specifically in small
companies. On the other side, look at the
derivatives. Many people trade in
DSIJ.in
derivatives also. Today, there are at least
one lakh incidents in a year where the
prices have moved up or down by 10
times in one day. Suppose yesterday it
started with Rs 10, today it might become
Re 1 in one day. One lakh such incidents
occured in last one year and no magazine
or no media wants to talk about it because
it is derivatives. Today, derivatives trade
30 times more than equity. Equities is 3
per cent of the market, out of which the
market cap of the small stocks is literally
150th part. So, effectively, we seem to give
more importance to 0.05 per cent of the
business, but 97 per cent of the business
which is derivatives where all these things
are happening, nobody seems to bother.
So that tells you the focus people have on
a particular situation, which is actually
not of that much relevance. The concern
which I have is why the so-called
investors are not asking you these
questions. So that tells you whether they
are investors or not.
They must be losing a lot of money in the
larger stocks or derivatives, but they are
not telling you. They might be also
neither traders nor investors, they might
be just story-tellers!
What is your feel and take on
the Indian economy? What is
your view of the economy 5
years down the line?
The Indian economy like any other
economy is going through a large
transformation. India has its own
particular uniqueness, so it will probably
change much faster than other countries.
Also, India has a larger opportunity to
grow faster because it has a much larger
youth population who learn newer
things who produce newer things and
also consume a lot of things. Whereas,
the countries which are becoming old
may not be able to consume much. That
is why, internationally, there is a worry
about the world slowing down in terms
of consumption, because we can produce
a lot, but if nobody consumes, then it
doesn’t make sense. So that is where
China is becoming old very soon and
suddenly and putting a huge break in the
overall inflation internationally and the
MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL
overall expectation of inflation. This is
because now the rate of demand for steel,
cement, food, petroleum oil, everything
has gone down because no one thinks
China can actually absorb most of it as
the youngsters are not there. Similarly,
Europe has become old and Japan has
become old and America is old.
Effectively, the only large economy that
is young is India and very technologically
oriented. So, in the next 5-10 years, India
is going to grow phenomenally as
compared to the rest of the world. That is
basically the story. At the same time, as
the world slows down, it will also have an
impact on the overall sentiments, but
India’s better days are ahead for the next
not only 5-10 years but 30-40-50 years.
The demographics and technology are
inter-playing and India is in a sweet spot
to take advantage of those things.
Any challenge you see that
could seriously hurt the
growth projections?
I think India has underestimated its
aspirations which are much lower. For
me, the future is going to unfold much
faster and the growth on any occasion
will be in excess of even higher double
digits. So, those are the days I think are
going to come, if not in 3-5 years, but
certainly in a 10-year horizon because of
the fact that the wealth that is being
created now is very rapid and sudden
due to changes in technologies. Creating
newer business which was not done
before or older business in the newer
way and the wealth that is created is
immense. That is why the next 50 years is
going to be very important for the
mankind in terms of the wealth creation,
but specifically for India, which lost out
on large wealth creation framework in
the industrial revolution. So, due to the
information revolution, India is very
well-placed and we are starting at a very
low base, so the percentage can be
higher. Therefore, a GDP of 15 trillion
dollar for China to grow at 10 per cent is
much tougher than India growing at 10
per cent on a 3 trillion dollar economy.
So, I have no doubt in my mind that
India’s better days are ahead of us for the
next 30-40 years. DS
31
 Special Report
Go For

Gold In
2019!
Gold is inching higher and
investors wonder if it will
outperform other asset classes.
Advait Dharmadhikari explains
why the outlook for gold in 2019
remains positive!

W
hile most of the investors were focused on equity Time and again the importance of asset allocation is discussed
markets and the political events in India that in financial literature. It is a known fact that the amount of
may impact equity returns, one asset class that is wealth that any investor would generate is a byproduct of asset
widely held by Indians managed to show an allocation in the long term. The outperformance of gold in 2018
impressive performance without making a lot of noise. shows the importance of being invested in the asset class.
Indeed, for any investor, getting the asset allocation right is not
Gold is up by 7.3 per cent in CY18 and is up by 1.82 per cent on only essential, but also the key to minimizing risks in
YTD basis in 2019. Gold outperformed equity yet again in 2018 investments. Smart investors have been taking exposure in the
as it did in 2008, 2010, 2011 and 2016. precious metal not expecting superior returns alone. The
intention is to create a portfolio that delivers on a risk-adjusted
basis. Gold can be an essential component of any portfolio that
Gold Outperformance Years needs to deliver returns on a risk-adjusted basis.
Year Gold Equity Says Sachin Surse, a seasoned investor, “ I always believed in
2019* 1.82 0.7 asset allocation strategy and have focused on getting it right
2018 7.3 5.9 from the beginning. At any given point of time, I am invested in
2016 12 3 gold, equity, real estate and debt. After equity, if there is any
2011 31.9 -24.6 other asset class that I am happy with, it is gold, as it has not
2010 24.1 17.9 disappointed me in terms of returns. And yes, it gives me the
2008 30.1 -51.8 much-needed diversification in the overall portfolio and the
*2019 performance is on YTD basis as on March 5, 2019 best part about gold is its liquidity.”

32 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

Special Report
Multi-asset class
investment approach can
lead to smoother returns
than investing in any
single asset class.
Domestic vs international gold prices and exchange rates
The exchange rates and gold price relation is always a
discussion point for investors. What matters for the investors is
to know what happens with gold prices when the Indian rupee
(INR) weakens and US dollar (USD) strengthens.
The below chart compares the domestic and international
prices of gold and also traces their movement along with the
34 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019
INR/USD exchange rate 2015 onwards. It is observed that the
local gold rate was at a discount to the international rate for 745
days and at a premium for 301 days. This means that local gold
prices were trading at a discount for more than twice the
number of days the price was at a premium to the international
rate. It can also be observed that when the rupee was weaker
against the dollar, the local price was at a discount to the
international price, and vice versa.
Demand for gold and a topsy-turvy year
In 2018, global gold demand rose 4.45 per cent on highest
central bank buying in 50 years. The gold demand in 2018
touched 4345.1 t (tonnes), up from 4159.9t in 2017. This is in
line with the five-year average of 4347.5t. The growth was
driven by central banks buying 651.5t, a multi-decade high. The
net purchases by the central banks jumped to their highest
levels since 1971, as several central banks turned to gold for
diversification.
The demand for gold as a reserve asset strengthened
substantially in 2018, rising by 74% compared to 2017, in
response to the geopolitical and macroeconomic environment.
This was led by a desire to de-dollarize foreign exchange
reserves in response to worsening geopolitical relations in some
parts of the world.
The gold ETF inflows registered a 67 per cent decline YoY, with
Europe being the only region to register net growth in 2018.
The annual jewellery demand remained largely flat, down by
just 1t from 2017. The Indian demand for jewellery remained
stable at 598t. The gains in the US, China and Russia were
broadly offset by losses in Middle East. Retail investments in
gold bars and gold coins registered a 4 per cent growth. The
demand for coins surged to reach a 5-year high of 236.4t. The
demand for gold bars remained steady at 781.6t, remaining in
the range of 700t-800t for the fifth successive year.
DSIJ.in
The usage of gold in technology saw marginal gains on the back
of healthy gains in the first nine months of 2018, but the last
three months witnessed a 5 per cent decline due to a
combination of slowdown of smartphone sales, the trade war
and increasing uncertainty regarding global economic growth.
The annual gold supply stood at 4490.2t. Gold mine production
increased 1 per cent to make a new record high of 3347t,
supported by a healthy production pipeline.
In December 2018, amid a sell-off in global stock markets and a
decline in the value of the dollar due to expectations of a
slowdown in US interest rate hikes, investors sought refuge in
gold. This resulted in the gold price ending the year near
US$1280/oz. (-1 per cent YoY). Under normal circumstances,
gold and dollar should share a perfectly inverse relationship, but
the domestic prices are different from international prices due
to factors like import restrictions, local demand-supply
dynamics, seasonal factors, purity requirements and
regulations.
Outlook for 2019
Many of the global factors seeded over the last two years and
the risks that became apparent in the late 2018 are expected to
carry over into 2019. This will lead to certain trends that will
play a crucial role in determining the demand for gold. The
interplay of these trends will determine gold’s short and long
term price behaviour. Increased market uncertainty combined
with expansion of protectionist economic policies would make
gold an attractive hedge. The upward trajectory of US interest
rates and the strength in dollar remain headwinds for gold;
however, these effects are expected to be limited as the Federal
Reserve has signaled more neutral stance, as a large part of the
growth seen in the US was due to tax cuts which are unlikely to
continue. The deterioration in credit markets of the US can be
seen with spreads widening by more than 70bps since January
2018 lows, while credit conditions for consumers are
tightening.
DSIJ.in
A few important global factors that make a positive case for
gold are expensive valuations in the financial markets and high
market volatility, political and economic instability in Europe,
potential higher inflation due to protectionist policies and an
increased likelihood of a global recession.
About 70 per cent of the gold’s global consumer demand comes
from emerging markets. India and China are two countries that
stand out as they have begun implementing the economic
changes necessary for growth and to secure their relevance in
the global landscape. China, with its Belt and Road initiative, is
focused on upgrading infrastructure, boosting commodity
markets and promoting regional economic development. India
has been rapidly modernising its economy, promoting fiscal
compliance and reducing barriers to commerce. Gold has an
unequivocal link to wealth and economic expansion and is
well-poised to benefit from these initiatives.
Gold has a dual nature: consumption and investment. The price
drivers of gold can be grouped into four categories, namely,
wealth and economic expansion, market risk and uncertainty,
opportunity cost and momentum. As a consumer good and
long-term savings vehicle, gold demand has been positively
correlated to economic growth. As a safe haven, its demand
historically has been high in times of heightened risk. In the
short and medium term, the level of rates or the relative
strength of currencies as well as investor expectations can either
enhance or dampen gold’s performance.
The use of gold across sectors like technology, energy, etc. is
changing rapidly. The position of gold as a commodity of choice
is expected to evolve over the coming decades. The
development of mobile apps for individuals to buy, sell and gift
gold is expected to develop rapidly in India and China. The
environmental and social factors and governance will play an
extremely crucial role in reshaping mining production
methods. The gold mining industry will also have to overcome
the challenge of producing similar levels of gold to match the
volumes it has historically delivered.
MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 35
Special Report
Extending Of Gold ETFs
The US physical gold-backed ETF industry continues
to experience an average 27.3 per cent AUM
growth per year in US$ terms since its inception 15
years ago. This has been driven by several factors,
including the rapid adoption of robo/self-directed
solutions, management fee compression, a wide Performance comparison (%)
range of options for exposures and ease of use Gold Silver Brent Crude Sensex
relative to other investment vehicles. 2018 7.3 -2.3 -19.5 5.9
YTD 1.82 -1.37 17.73 0.77

WORLD OFFICIAL GOLD HOLDINGS Alistair Hewitt

Director of Market Intelligence at the World Gold Council
International Financial Statistics, March 2019
Country Tonnes % of reserves
United States 8,133.5 75.0% Following the multi-decade high in gold
Germany 3,369.7 70.6%
Italy 2,451.8 66.9% reserves growth in 2018, central banks'
France 2,436.0 60.8% appetite remained healthy at the start of 2019.
Russia 2,119.2 18.9%
Mainland China 1,864.3 2.5% Gross purchases of 48 tonnes (T) and gross sales of
Switzerland 1,040.0 5.6% 13T led to global gold reserves rising by 35T on a
Japan 765.2 2.5%
Netherlands 612.5 65.7%
net basis in January, with sizeable increases from
India 607.0 6.4% nine central banks. This is the largest January
Source: International Monetary Fund's International Financial Statistics(IFS)
increase in gold reserves in our records (since
FinTech’s growing role in the gold industry 2002) and illustrates the recent strength in gold
The fin-tech community saw a heightened level of interest in 2018.
A wide variety of different digital investment platforms have been accumulation. Demand was concentrated amongst
launched worldwide and many are under development. These emerging market central banks with diversification
platforms seek to introduce new business models and disruptive
solutions to redefine the current gold industry value streams as being the key driver in the face of ongoing
well as potentially increase gold demand. geopolitical and economic uncertainty.
Block chain has rapidly gained traction in the fin-tech space Reserve, pointed out that the change in the prices of gold
and seeks to ensure integrity in the global supply chain. In the historically parallels the change in the general price level for
future, fintech gold solutions are expected to be a significant goods and services, meaning it has an inherent stability when
driver for the markets. For example, Safegold is a digital analyzed across decades or even centuries. The global factors and
platform in India that allows customers to buy, sell and receive industry dynamics point to a positive outlook for gold in 2019.
vaulted gold.
For investors, the trick is to get the portfolio balance right in
Conclusion terms asset allocation. Gold as an asset class cannot be ignored
In conclusion, gold is perceived to have intrinsic value which is by any type of investor.
why the world’s central banks, the International Monetary Fund
(IMF) and other financial institutions own over US$1tn worth In 10 out of 15 years since 2003, we find that both gold and
of gold. equity as an asset class has generated positive returns. It looks
like 2019 is going to be another year where both equity and
Dr. Alan Greenspan, the former chairman of the Federal gold will deliver positive returns. DS

36 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Cover Story
DSIJ

Wealth-Creators

Investors in equity markets are always looking to invest in the

‘Top Wealth Creators’. Shohini Nath and Yogesh Supekar
find out the top wealth creators in the previous years and share
some interesting insights on the market trends and wealth creators.
Also, the DSIJ Research Team shares a list of
“The Super 50 & Elite 100 companies” based on their
historical performance (growth) and fundamentals.

38 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Midcap revival is on the cards.
The relative valuation of
mid-caps versus large-caps
are at a historically low level,
with 7 DMAs at 2014 levels. Moreover, the
rolling one-year return difference between
mid-caps and large-caps are at a historical
extreme of -22% versus average of 4.4%. We

E
believe valuations are compelling at these
levels for a revival in the performance of
quity markets in 2018 have been extremely
tough on investors. Investors were frustrated mid-caps, particularly the quality
not only because the broader markets did not mid-caps which have also taken a
perform, but also because among the
large-caps, only a handful of stocks delivered substantial beating.
satisfactory results. There was hardly any
place to seek refuge in the markets in 2018 Elara Capital
and that has dampened the spirits of
investors a little bit.
delivered 25 per cent and more returns in one year is 1049. As
So far, the market story has been akin to that of CY2018. The many as 744 stocks have on an average generated returns in
large-caps are faring better than the mid-caps and small-caps, excess of 50 per cent, while the number of stocks that have
even though the latest trading sessions in the market are delivered more than 100 per cent returns on an average in one
showing signs of narrowing the performance gap between the calendar year is 392.
large-caps and mid/small-caps.
In the past ten years, the difficult years for investors have been
Index YTD Performance (%) 2011-12, 2013-14 and 2018-19. These are the years where the
BSE Midcap -4.1 number of stocks that gave positive returns were low. What is
BSE SmallCap -2.37 interesting to note is that in the immediate years following
BSE LargeCap 0.32 those difficult years, the number of stocks that gave positive
returns has drastically increased. This data makes us believe
Indeed, it is only a small number of stocks that are pushing the that 2019 may be a year where the broader markets perform
markets higher in 2019 so far. Will the narrative change in much better than they did in 2018. The broader market
2019? What are the chances of the broader markets starting to participation in 2019 will remain a key not only to individual
contribute and cheering the investors? To find answer to these investors' performance and their confidence, but also for the
questions, it would be useful to look at the market data for the improvement in the performance of mutual funds. With
last 10 years. improvement in the mutual fund performance, one can expect
more money to flow into equity MF schemes.
All Caps Multi-Year Market Performance
10-year market performance statistics (all stocks) Sensex Is The Most Expensive Market Globally
Year Positive closing 15% + 25% + 50% + 100% + Global indices P/E
2009-10 2364 2218 2097 1765 1057 S&P 500       ............................................................................................................................. 18.26
2010-11 1638 1306 1086 703 312
Nasdaq        .............................................................................................................................. 22.46
2011-12 358 240 185 102 45
2012-13 1798 1405 1177 707 286 DJIA           ................................................................................................................................ 16.35
2013-14 796 530 422 263 124 SENSEX    ................................................................................................................................. 26.98
2014-15 2111 1872 1726 1376 831
DAX             ............................................................................................................................... 14.43
2015-16  1739 1350 1142 782 407
2016-17 1311 965 785 451 201 CAC               .............................................................................................................................. 17.79
2017-18 2116 1827 1614 1164 601 FTSE             .............................................................................................................................. 17.07
2018-19 486 344 260 129 64
Hang Seng   ............................................................................................................................. 11.1
Nikkei            ............................................................................................................................ 15.93
If we look at the above table, we find that on an average, at least
Brazil               .......................................................................................................................... 18.55
1471 shares have given positive returns every year. The average
number of stocks that have delivered 15 per cent and more in Russia             ................ .......................................................................................................... 5.84
one year is 1205, while the average number of stocks that China             ............................................................................................................................   14.64

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 39

 Cover Story
What is your outlook on the
markets for 2019?
I am very bullish on the market outlook
in 2019. Firstly, the broader market has
bottomed out and the margin of safety is
high. Next, many variables are in favour.
Inflation is structurally weak and
another repo rate cut is on the cards. The
commodities are in a bear phase and are
unlikely to rise to alarming levels for 4-5
years. Rupee overvaluation has been
sharply reduced, so further depreciation
will only be gradual. Last quarter’s
Amar Ambani, President & Head of Research, Yes Securities
Next 3-4 Years Belong To
Financial Assets, Not Physical Assets
revenue growth was the highest seen in
five quarters and while the margins were
under pressure, we expect relief in the
coming quarters. Importantly, PSUs did
well and public sector banks reduced
their losses. Looking at the results of
ICICI Bank and Axis Bank, we also get
the feeling that the NPA cycle will see a
turnaround. Corporate deleveraging is
steadily taking place and the government
capex continues at a healthy pace.
Thirdly, political equations for upcoming
general election are getting clearer and
the market certainly likes that. Lastly, I
feel global equity markets will move up
and rub-off on emerging markets. The
dividend yield of Dow is better than the
global treasury yield. ECB’s policy stance
has also turned dovish. My Nifty target
for 2019 is 13,000.
Which sectors in your view
are ripe for investment in
2019?
I always prefer a bottom-up approach to
stock selection. Many sectors and themes
are looking attractive at this juncture. We
like construction, discretionary
consumption space, private banks (both
retail and corporate funding ones),
capital goods as a contra play and a host

Fastest Wealth Creators (1 Year) Fastest Wealth Creators (3 Year) Fastest Wealth Creators (5 Year)
1 Year Returns 3 Year CAGR 5 Years CAGR
Company Company Company
(Absolute) (%) (%) (%)
Coastal Corporation 1241.79 Sadhana Nitro Chem 236.76 Sadhana Nitro Chem 138.33
Vikas Proppant & Granite 566.13 Dolat Investments 209.82 Dolat Investments 113.65
Dolat Investments 542.86 Niyogin Fintech 203.79 Uniply Industries 109.58
Grandeur Products 226.21 Mangalam Organics 190.22 Medicamen Biotech 106.23
Sadhana Nitro Chem 209.03 Indiabulls Integrated Services 182.53 Nath Pulp & Paper Mills 104.53
Shriram Asset Management Co. 173.46 Kanchi Karpooram 168.38 Tasty Bite Eatables 102.15
Birla Cable 169.51 HEG 155.62 Olectra Greentech 99.81
GSS Infotech 167.4 Generic Engg. Const.& Projects 151.95 Mangalam Organics 97.48
KIC Metaliks 161.54 Indiabulls Ventures 146.92 Associated Alcohols & Breweries 96.53
IOL Chemicals & Pharmaceuticals 145.29 Olectra Greentech 138.57 KEI Industries 96.33
Ratnabhumi Developers 139.92 Vikas Proppant & Granite 133.17 Stylam Industries 95.68
Punjab Alkalies & Chemicals 129.32 Axtel Industries 118.97 Minda Industries 93.86
Mangalam Organics 125.52 NR Agarwal Industries 116.52 Tanfac Industries 93.57
Shree Global Tradefin 118.79 Phillips Carbon Black 113.72 Shivalik Bimetal Controls 92.35
Urgo Capital 118.06 Prime Securities 113.32 Ducon Infratechnologies 90.91
Scan Steels 115.6 Shivalik Bimetal Controls 112.76 Permanent Magnets 88.08
Merck 110.6 Apollo Tricoat Tubes 109.99 V2 Retail 84.94
Responsive Industries 99.79 SVP Global Ventures 109.19 Vidhi Specialty Food Ingredients 83.37
Astrazeneca Pharma India 95.45 Medicamen Biotech 108.15 NR Agarwal Industries 82.70
Arnold Holdings 94.53 Confidence Petroleum India 105.05 Arman Financial Services 81.84

40 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

of individual names like Reliance markets hereon?
Industries, Asian Paints, SBI, M&M, Last 10 years, both the US and Indian
among others. equity returns have been similar, if one Importantly, PSUs did
What are you advising your
considers low point of indices in
2008-09. In dollar terms, of course, India
well and public sector
clients at this juncture? has underperformed. Going forward, it's banks reduced their
difficult to say which market will
The first advice is to cut out the noise outperform. But its safe to say that both losses. Looking at the
around you. In the present times, there is
too much information thrown at you,
will rally.
results of ICICI Bank
most of which only confuses you further.
Our assessment is that the next 3-4 years
Should one invest in equity and Axis Bank, we
belong to financial assets and not
markets at this juncture and
what is the best way to
also get the feeling
physical assets. After the deep correction
in 2018, the time is ripe to allocate more participate in the markets? that the NPA cycle will
money to equities. If you have a higher
risk appetite and are willing to stay
I am bullish for a 3-4 year perspective.
Constructing a portfolio depends on
see a turnaround.
invested for three years, then do add lots many things that include risk appetite, Corporate deleveraging
of mid-cap flavour to your portfolio. For
investors in fixed income, go for accrual
return expectations, comfort, liquidity
needs and so on. Depending on these, a is steadily taking place
strategy at the shorter end of the curve. mix of direct equity which includes
midcaps, some diversified mutual funds
and the government
In your view, will Indian and midcap focused portfolio managers capex continues at a
would be best. An SIP is recommended
markets outperform global as well; sectoral funds are not. healthy pace.
Fastest Wealth Creators (10 Year) Fastest Wealth Creators (15 Year) Fastest Wealth Creators (20 Year)
10 Years CAGR 15 Years 20
Company Company Company
(%) CAGR (%) Years_CAGR
Westlife Development 109.97 Symphony 74.67 Westlife Development 64.54
Bajaj Finance 85.27 PI Industries 61.80 Havells India 45.45
Symphony 78.81 Vinati Organics 55.23 Marathon Nextgen Realty 45.41
Avanti Feeds 77.45 Arman Financial Services 54.53 Kotak Mahindra Bank 44.24
Astral Poly Technik 74.94 Borosil Glass Works 53.68 Eicher Motors 44
Safari Industries (India) 74.83 Mayur Uniquoters 52.96 Symphony 43.78
Relaxo Footwears 74.63 TTK Prestige 50.48 Vinati Organics 42.8
Ajanta Pharma 64.54 Bajaj Finance 49.22 UPL 41.82
La Opala RG 60.87 Manappuram Finance 48.82 Balkrishna Industries 41.27
Mayur Uniquoters 60.3 Bliss GVS Pharma 48.44 Phoenix Mills 41.06
Vinati Organics 58.87 Tasty Bite Eatables 47.84 PI Industries 41.04
PI Industries 58.44 Cera Sanitaryware 47.31 JSW Steel 40.79
Mangalam Organics 58.07 Safari Industries (India) 47.13 Motherson Sumi Systems 40.37
Sundaram-Clayton 57.26 JSW Steel 45.97 Shree Cement 40.26
Eicher Motors 56.93 Himadri Speciality Chemical 45.84 Bajaj Finance 40.17
Poly Medicure 56.84 Relaxo Footwears 45.49 Borosil Glass Works 39.28
Bharat Rasayan 56.19 Shilpa Medicare 44.77 CCL Products (India) 38.29
Vakrangee 55.08 KEI Industries 44.56 Ratnamani Metals & Tubes 36.24
Atul 54.77 Ganesh Benzoplast 44.30 Caplin Point Laboratories 36.23
TTK Prestige 54.18 Havells India 43.95 Gruh Finance 36.18

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 41

 Cover Story
TOP Sensex Wealth Creators
Company Name 1 Year (%) Company Name 3 Years CAGR (%) Company Name 5 Years CAGR (%)
Bajaj Finance 68.8 Bajaj Finance 63.39 Bajaj Finance 76.43
Axis Bank 39.22 Reliance Industries 35.84 Maruti Suzuki India 33.72
Reliance Industries 38.71 HDFC Bank 27.18 IndusInd Bank 29.48
Hindustan Unilever 31.49 Vedanta 26.88 Kotak Mahindra Bank 29.22
TCS 31.12 Hindustan Unilever 26.02 Yes Bank 27.72

Global Market Outlook growth in the global economy is expected

to taper off slightly. JP Morgan Chase
US

For 2019 estimates global growth to come in at 2.9

per cent as against 3 per cent in 2018.
The valuation gap between the emerging
markets and their developed
counterparts is expected to reduce in
2019. The year 2018 was more about US
leadership in economic growth relative to
other markets largely due to Trump’s
fiscal stimulus. The year 2018 proved to
be a challenging year for most asset
classes as investors were faced with
mounting uncertainties, including trade
war concerns, Chinese growth slowdown
and successive Fed rate hikes.
After delivering a second straight year of
growth exceeding the potential GDP gains
amid higher interest rates in 2018, the
The US economy delivered a robust
growth of 3.1 per cent in 2018. In 2019,
this growth is set to moderate to 1.8 per
Indian Markets have cent as fiscal, monetary and trade policies
underperformed on YTD Basis start tightening. December 2018 was the
worst month for the US equities in 50
Indices  YTD Returns (%) years. The current US expansion will
Sensex 0.52 become the longest expansion if it
Nifty 0.71 continues past July 2019. Trade war
Dow Jones  10.59 friction with China remains elevated, but
Nasdaq 13.68 it seems to be priced in by the markets.
Hang Seng 15.25 The IMF expects the US fiscal deficit to
Nikkei 11.06 touch 5 per cent of GDP due to Trump’s
Shanghai  23.89 fiscal stimulus in 2019, even though
FTSE 100 5.94 unemployment remains low. The Federal
CAC 40 12.97 Reserve, which has been increasing
DAX 9.83 interest rates, is expected to slow its pace
Data as on Mar 5, 2019 of rate hikes amid slowing growth and

Sectoral Wealth Creators

FMCG BANKS
Company Name Returns (%) Company Name Returns (%)
Coastal Corporation 1241.79 Axis Bank 33.64
1 The Indian Wood Products Company 66.85 1 RBL Bank 22.70
Year Dabur India 36.88 Year ICICI Bank 15.81
Tasty Bite Eatables 450.37 Indian Bank 198.12
3 Hindustan Foods 406.64 3 City Union Bank 161.26
Years VIP Industries 335.41 Years DCB Bank 150.82
Tasty Bite Eatables 3288.82 City Union Bank 391.46
5 Hindustan Foods 1220.89 5 Yes Bank 289.50
Years Chaman Lal Setia Exports 1155.17 Years IndusInd Bank 281.51

NBFCs IT
Company Name Returns (%) Company Name Returns (%)
Ugro Capital Ltd. 118.06 GSS Infotech 167.40
1 Arnold Holdings Ltd. 94.53 1 NIIT Technologies 51.99
Year Indianivesh Ltd. 90.76 Year Info Edge (India) 38.67
Muthoot Capital Services Ltd. 547.00 GSS Infotech 418.90
3 Bajaj Finance Ltd. 329.03 3 Mastek 229.56
Years CSL Finance Ltd. 302.78 Years Aptech 212.40
Arman Financial Services Ltd. 1894.74 Virinchi 888.44
5 Bajaj Finance Ltd. 1597.89 5 Zen Technologies 866.06
Years Capital Trust Ltd. 1186.46 Years Moschip Semiconductor Technology 846.12

42 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

inflation. The volatility is expected to
spill over from 2018 into 2019 and the
US equity markets are expected to deliver
mid-single digit returns, as per the
consensus. The peak of the economic
boost from the fiscal stimulus will be
seen in 2019. However, the stimulus will
start becoming a drag on the economy in
2020, which is when a recession is feared.
The trade war with China is expected to
cool off as an agreement between the two
countries looks likely.
Europe & Japan
Europe witnessed a significant slowdown
during the latter quarters of 2018 with
growth coming in at 0.2 per cent for the
quarter ended September 2018. The
outlook does not appear rosy as political
risks, muted earnings and economic
momentum continues to be negative.
Uncertainty looms large over how to
manage Italy’s mountain of debt. Italy
proposed a budget deficit of 2.4 per cent
which is three times the amount targeted
by the previous government. This led to a
budget conflict with the EU. How this
conflict plays out in 2019 remains to be
seen. UK equities are in for difficult times
as the country tries to negotiate an
orderly exit from the European Union.
The transient factors like drop in car
production due to change in
environmental regulation are expected to
see a reversal. This could lead to a
rebound in GDP from 2018 and into
2019.
Japanese growth could get a boost due to
reconstruction efforts following a natural
disaster in 2018, combined with
construction work for the 2020
Olympics. The tight labour market
could provide a boost to consumption as
capital expenditure activity and wages
see an increase. Decent corporate
fundamentals, cheap valuations and
political stability augur well for the
Japanese markets.
Emerging Markets
The growth momentum in China
continued to weaken towards the end of
2018 as the world’s second biggest
economy grapples with a slowdown. The
GDP growth came in at 6.8 per cent in
2018. However, China’s debt continues to
be more than 250 per cent of the GDP
and the slowing property construction,
poor demographics and trade war
remain some of the key risks. China
responded to downturns in the past with
massive fiscal and credit stimuli. This
time, the stimulus is unlikely to be as
large and as effective. However, the work
around the infrastructure focused Belt
and Road initiative might GDP growth is
expected to hover around 6 per cent in
2019.
The emerging markets were in the
doldrums in 2018 on the back of rising
interest rates, strengthening dollar and
lingering trade tensions. However, most
of these countries continued to maintain
fiscal discipline which has set them up
for exciting growth as these headwinds
subside. A decisive transition to a
quantitative tightening era could mean
the end of the era of "winner takes all” for
the US equities. The value looks set to
perform growth and emerging markets
should see gains at the expense of their
developed counterparts. The stark
valuation difference has led to Morgan
Stanley’s base case forecast showing an 8
per cent price return for the MSCI EM
index in 2019.
India’s economic growth is expected to
remain healthy at around 7.5 per cent in
2019, driven by household consumption
and some capital expenditure. The
general election results due to be held in
April and May could incentivize some
pre-election spending promises. Fiscal
discipline has largely been maintained by
the current government. The current
government’s re-election would cheer the
market as they can expect more reform-
oriented policies. A revival in corporate
earnings is widely expected, which would
augur well for the markets.
Outlook on currencies
The Fed rate hikes combined with the
strong growth has led to dollar
strengthening in 2018. The slower
growth forecast for the US could mean
slower pace of interest rate hikes by the
Federal Reserve, which could lead to
weakness in dollar. Morgan Stanley
estimates the dollar to be 15 per cent
overvalued against other major
currencies. The unusually bullish
sentiment about the dollar means that
the trend looks set to reverse. The
weakness in dollar could lead to strength
in euro and yen.
The rupee witnessed high volatility in
2018 with a yearly high and low of
`74.49 and `63.25 respectively. The

Consumer Durables Capital Goods

Company Name Returns (%) Company Name Returns (%)
Honeywell Automation India 28.19 GMM Pfaudler Ltd. 64.81
1 KDDL 17.93 1 Permanent Magnets Ltd. 64.31
Year TTK Prestige 15.17 Year Praj Industries Ltd. 61.20
IFB Industries 183.29 HEG Ltd. 1570.35
3 Bajaj Electricals 175.21 3 Axtel Industries Ltd. 949.92
Years Honeywell Automation India 160.72 Years Permanent Magnets Ltd. 737.11
Ducon Infratechnologies 2445.00 Permanent Magnets Ltd. 2273.88
5 Johnson Controls - Hitachi Air Conditioning India 1146.87 5 Yuken India Ltd. 1555.48
Years IFB Industries 1056.29 Years GMM Pfaudler Ltd. 1158.28

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 43

 Cover Story
Indian markets have
underperformed on YTD basis
so far. Will the performance
reverse for the remaining
part of the year?
With all the things happening globally,
be it trade wars, border tensions,
liquidity tightening or the interest rate
hikes, it is difficult to say whether the
market performance will reverse or not
in this year itself. After saying this, an
individual company's stock performance
is determined by the earnings growth
that it can deliver. So we believe in
bottom-up stock picking and investing
in businesses which can deliver a
sustainable earnings growth is where we
would like to put our money on.
What is your outlook on
small-caps for 2019? What is
your portfolio stance on
small-caps and mid-caps?
We have already seen a wide divergence
 The emerging markets were in
the doldrums in 2018 on the back
of rising interest rates,
strengthening dollar and lingering
trade tensions. However, most of
these countries continued to
maintain fiscal discipline which has
set them up for exciting growth as
these headwinds subside. 
44 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019
Raj Mehta, Fund Manager, PPFAS Mutual Fund
Bottom-Up Stock Picking Makes Sense,
More So In The Mid-Cap And Small-Cap Space
in performance of index versus the
broader market i.e. mid-cap and
small-cap stocks in 2018 and 2019 YTD.
The index has given decent returns due
to the performance of a select few stocks.
Mid-cap and small-cap stocks had gone
up too much for our liking in 2018 and
they needed a breather which they got in
2018. We believe the valuations in this
space are much better than what they
were in 2018, but still, there are select few
good quality companies that are at
expensive valuations. Bottom-up stock
picking makes sense, more so in the mid-
cap and small-cap space.
What are the key triggers to
be watched out for in the
current market scenario?
General elections are something which
everybody is waiting for. It does affect
the sentiments in the market, but the real
trigger for the market would be the
earnings growth, which has been eluding
the markets for 3-4 years now. The bad
news and provisioning seem to be
behind for the corporate and PSU banks
(more so for corporate banks) which had
struggled in the last few years. Also, there
biggest risk for the rupee in 2019 will be
crude oil price. Real rates remain high
at around 4 per cent and inflation is tepid
at 2.3 per cent. This has built in
expectation of a 50 bps rate cut in 2019.
Any major shift in the crude oil prices
could upset this expectation. The slower
rate hikes by the Federal Reserve would
make emerging markets more attractive
for the investors. If inflows into these
markets improve, it could augur well for
their currencies, including the rupee.
The rupee is currently at `70/USD.
has been no private sector capex for a
few years now. Once you see the capacity
utilisations going higher for the
companies, we could see the private
capex cycle reviving and it will lead to
another cycle of earnings growth for the
infra and capital goods space.
What portfolio strategy can
yield higher double-digit
returns in 2019?
There is no particular strategy that works
or does not work in the market. Patience
is the key for holding on to the stocks
you own and it is necessary to keep an
eye on the valuations that you pay for the
individual companies. If we keep the
basic tenets of investing intact, then there
is a lesser probability of going wrong.
Not going wrong is even more important
than missing some of the opportunities.
The portfolio strategy of not
compromising on either the quality of
business, quality of management or the
valuation that you pay for the company
can yield returns superior than the
market (not necessarily double digit).
Disclaimer: Views are personal
Interest rate outlook
The central banks of different economies
are in different stages of their policy cycle.
The US is expected to slow its pace of rate
hikes. The Bank of England’s policy
tightening cycle is expected to continue.
The European Central Bank is expected
to begin its policy tightening cycle
whereas the Bank of Japan is expected to
continue its policy easing cycle. China
and India could see monetary easing with
DSIJ.in
interest rates in India expected to come
down by 50 bps in 2019.
Crude oil
Crude oil prices continue to remain
volatile. Trade wars, Iran sanctions,
OPEC production targets and the US
pressure will continue to dictate oil
prices. Bullish forecasts by Exxon Mobil
Corp and Chevron Corp and the recently
released Permian basin projections point
to an increase in shale oil production in
the US. Crude inventories increased to
7.3 million barrels in the week ended
March 1, 2019, much higher than
consensus expectations. This should keep
oil prices benign, despite OPEC’s efforts
to withhold supply.
DSIJ.in
Conclusion :-
Looking at the global equity markets, we
find that the growth concerns exist.
Expect a slowdown in the GDP growth
in the US and even in China. With two of
the worlds foremost economies expected
to witness slowdown in growth, investors
can expect no great robustness in
earnings in these countries and hence the
expectations could be muted from these
markets. Having said that, global
investors have pumped in around $86
billion into emerging market stocks and
bonds in 2019 so far, according to the
data from Institute of International
Finance. If anything, this action goes to
show the risk-on mood of the global
investors.
MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL
The year 2019 could well be a year where
the rupee and the other emerging
currencies stabilise and gain against the
USD. The crude oil prices are not
expected to rise much even as the
geopolitical tensions are getting factored
in by the markets.
With earnings growth expected to
gain momentum in 2019 and the interest
rates expected to come down a little bit,
equity as an asset class is expected to
remain the top performer yet again.
Investors should note that Sensex is the
most expensive market globally and the
earnings will have to do a serious catch
up in order to remain attractive for the
global investors. DS
45
 Cover Story
All-embracing extensive research has led to
the selection of India’s top 150 companies
which have created wealth for their
promoters, shareholders and the society at
large. We have applied a professional
approach and method in this selection
process as explained below-
This year’s list marks Dalal Street
Investment Journal’s seventh year of
ranking of India Inc. and presenting the
DSIJ 150. Ranking provides a universally
accepted benchmark of performance
with an objective analysis. What is also
important is that with time, experience
and changing conditions, the way one
ranks should also undergo modification.
These years have made us a little wiser
and we have tweaked the methodology to
make it more robust, as will be explained
in the following paragraphs.
The study has culminated in the selection
46 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019
Methodology
of the top 150 corporates of India Inc.
and is a result of a meticulously laid out
process. What follows is a detailed
description of the various steps that have
been followed in order to arrive at this
most coveted list of toppers. For the
purpose of this study, we began with all
the listed companies of India. Since our
objective was to focus on companies
which have been super-achievers, a ‘short
period’ study would not have been
justified. Therefore, we spread our period
of study over the past five years; we then
narrowed down the list to include only
those companies which have been listed
for more than five years.
THE RATIONALE
A long-term study of five years tends to
even out any aberration in the results of
any particular year and helps in
providing a fair idea of the long-term
performance. A long-term study weeds
out ups and downs which are a natural
part of any business. Another reason why
a five-year period or long-term study
makes more sense is that many
infrastructure companies such as power
and road construction, and even the
strategies of the service sector and
manufacturing companies, get executed
over a longer period before they begin to
reflect on the financials of the company.
THE EXCLUSIONS
We have deliberately left out certain
categories and companies from our study
of Elite 100. These include- Banking and
Non-Banking Finance Companies: The
reason for excluding banking and NBFCs
from our study is due to the difference in
the nature of their business and the way
they should be evaluated. Moreover, we
will come out with a special issue on
banking in the coming month wherein
these companies will be comprehensively
ranked.
THE PARAMETERS
Broadly speaking we have sought to
DSIJ.in
analyse and rank companies based on
the following parameters:
— Growth
— Efficiency
— Safety
— Wealth creation
Growth: The most important criterion
for determining a company’s success is,
naturally, the growth that it achieves over
a period of time and also its capacity for
growth in the future. Growth for a
company can be defined in many ways. It
could include anything and everything
that goes to define a corporation as a
whole. The most important and critical
among these is the top-line which is
defined by the sales or revenues of the
company. The next growth factor is the
operating profit which defines the
operational performance of the company.
Then comes the net profit which defines
the eventual benefit to stakeholders
either to be used this year in the form of
dividend or can be invested to reap its
benefit in the coming years. These reflect
the profit and loss (P&L) side and
capture the financial health of the
company at three different levels.
Efficiency: It is not only the growth that
matters but also how effectively and
efficiently this is achieved. In fact, the
more efficiently an organisation uses its
resources, the higher the value that it
creates for its stakeholders. Having said
that, we have measured efficiency based
on the following factors.
 Operating profit margins (OPM)
 Net profit margins (NPM)
 Return on capital employed (RoCE)
The OPM and the NPM together capture
the efficiency of a company at the
operating and the net levels, respectively.
The RoCE, on the other hand, indicates
how good a company is in utilising its
funds. This is evaluated on a relative basis
for the current year.
Safety: Debt for a company is like a
double-edged sword; if raised and
utilised in an efficient manner, it can
increase the shareholders’ return or else
can turn into a burden. Therefore, we
DSIJ.in
have used the debt-to-equity ratio to
measure the safety of capital of the
company’s shareholders. It actually
reflects on how much of your money in
terms of shareholder equity could come
back to you in case of an eventuality after
paying out the entire debt on the balance
sheet.
Wealth Creation: The ultimate objective
of any organisation is maximising the
shareholder’s return. Obviously, then,
this had to be one of the criteria for our
study. In order to evaluate companies on
this front, we have looked at the
movement in share prices over last one
year after adjusting for splits and
bonuses. The impact that this has had on
market capitalisation is what has
determined wealth creation by these
companies for their shareholders. Last
year has particularly been turbulent with
companies seeing correction in market
prices due to corporate governance
issues, change in regulatory environment
and change in accounting standards.
THE RANKING METHOD
After having laid out the data according
to the various parameters as discussed
above, we then embarked on the final
step of ranking these companies.
Although all the parameters described
above play an important role for a
company to excel, they differ by way of
the importance of the quantum. We have
carefully measured this requirement and
accordingly assigned weights to each of
the parameters. Even within that,
companies in different stages of their
evolution have been assigned weights
according to the requirement. This led us
to the creation of two broad categories.
One, where we considered companies
with a market capitalisation in excess of
`10,000 crore and second, where we
considered companies with a market
capitalisation of less than `10,000 crore
but exceeding `1,000 crore. We have
carefully assigned appropriate weightage
to arrive at our final list and the rankings
done thereafter. Accordingly, a higher
weight has been assigned to the growth
factor in case of companies with a market
capitalisation of more than `10,000 crore,
MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL
the reason being that these companies
are far ahead on the safety curve. They
have been in the business for a greater
duration and have achieved critical mass
by now. What is important in their case
is the growth factor which will propel
them into the next orbit. Considering
that leverage plays a higher role for
companies with a market cap of less than
`10,000 crore, a higher weightage has
been assigned for the safety parameter
for Elite 100. With improvement in
technology and growth, we expect
companies to sweat their assets
efficiently. Super 50 are expected to lead
in the same to drive bottomline growth.
Hence, Super 50 companies have been
assigned a higher weightage for their
efficiency parameter in comparison to
the Elite 100 companies. On the other
hand, the wealth creation parameter
computed using shareholder returns
carries the same weightage in both the
categories.
Based on all these factors, a final
composite ranking of companies in both
the categories was arrived at. This gave us
a list of the top 50 companies in the first
category (market capitalisation in excess
of `10,000 crore), which is our ‘Super 50’
club. The top 100 companies in the
second category make up our ‘Elite 100’
group.
As mentioned at the outset of this
exercise, it has been our perpetual
endeavour to research and provide the
best of the best to our readers and
patrons. We at DSIJ are committed to
continue improving upon our
methodology and research metrics to
further strengthen the quality of the
results. In the pages that follow we bring
to you the DSIJ list of ‘Super 50’ and
‘Elite 100’ companies. We hope this
compilation helps you put a finger on the
truly ‘valuable’ shining stars of India Inc.
Although these companies have
performed superbly over the last five
years and rightly deserve a place in DSIJ
150, these are not our recommendation.
Nonetheless, these companies can be
looked at for investment after applying
your own judgement.
47
 Cover Story Super 50
Bajaj Holdings &
RANK Info Edge (India) RANK Investment
1 BSE CODE
FACE VALUE (`)
: 532777
: 10 2 BSE CODE
FACE VALUE (`)
: 500490
: 10
MARKET CAP(` Cr.) : 20862.9 MARKET CAP(` Cr.) : 34728.6
CMP (`) : 1798.9 CMP (`) : 3150.9
Info Edge (India) provides IT services and online classifieds for Bajaj Holdings & Investment is focused on earning income through
businesses. Its segments include Recruitment Solutions, 99acres, dividends, interest and gains on investments held. It invests in
Online Restaurant Discovery and Others. The Others segment equities based on its views of returns from public equity markets, as
includes Jeevansathi and Shiksha services. Furthermore, it is well as opportunities in the private equity space. It invests in equities
engaged in the business of Internet-based service delivery, normally with a five year holding horizon or even longer. Its other
operating in over four service verticals through web portals. It equities investment portfolio includes financial, technology/ pharma;
offers placement search services, resume sales services and real consumers/education; sugar; material/ metals/ oil and gas;
estate broking services. construction/ infra, telecoms and media. Its fixed income portfolio
includes government securities, CDs, CPs, corporate bonds, etc.

Financial Snapshot Financial Snapshot

Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)
72.9 25.3
Promoters : 41.2 Promoters : 46.4 25.8

Institutions : 47.5 50.7 Institutions : 19.2

Non-institutional Non-institutional
and others : 11.3 and others : 34.4 22.2
14.9
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

988.2 34.9 959.9 4.5

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

634.8 31.5 889.6 4.1

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

545.1 0.00 798.2 0.00

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

48 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 RANK Natco Pharma RANK Adani Transmission
3 BSE CODE
FACE VALUE (`)
: 524816
: 2 4 BSE CODE
FACE VALUE (`)
: 539254
: 10
MARKET CAP(` Cr.) : 12320.5 MARKET CAP(` Cr.) : 23563.4
CMP (`) : 575.5 CMP (`) : 196.1
Natco Pharma is engaged in developing, manufacturing and Adani Transmission operates as a power transmission company. It
marketing finished dosage formulations (FDFs) and active is engaged in transmission of electric energy and trading of castor
pharmaceutical ingredients (APIs). Its segments include APIs, oil. It owns, operates and maintains approximately 5,050 circuit
FDFs, job works, pharmacy and others. The Company’s product kilometers of transmission lines, with a total transformation
categories include Domestic Formulations, International capacity of over 12,000 MVA. It has four operational Transmission
Formulations, APIs and Blockbusters. Systems that primarily serve the Northern and Western regions of
India, and additional projects of approximately 1,700 circuit
kilometers.

Financial Snapshot Financial Snapshot

Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)

Promoters : 48.4 63.2 Promoters : 74.9 226.9

207.7
52.8
Institutions : 29.9 Institutions : 23.1

Non-institutional 31.1 Non-institutional

and others : 21.7 and others : 2.0 76.2

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

2202.0 35.3 3944.5 16.6

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

902.6 29.7 2357.3 32.0

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

695.2 0.06 1142.9 1.72

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 49

 Cover Story Super 50

RANK Mphasis RANK Infosys

5 BSE CODE
FACE VALUE (`)
: 526299
: 10 6 BSE CODE
FACE VALUE (`)
: 500209
: 5
MARKET CAP(` Cr.) : 18533.1 MARKET CAP(` Cr.) : 332716.6
CMP (`) : 1033.9 CMP (`) : 734.7
Mphasis is an IT solution provider in cloud and cognitive services. Infosys is engaged in consulting, technology, outsourcing and next-
Its segments include Banking, Capital Market, Insurance, IT, generation services. It provides business information technology
Communication, Entertainment and Emerging Industries. It offers services comprising application development and maintenance,
cloud computing, cognitive solutions, digital services, securing independent validation, infrastructure management, engineering
businesses, application services and infrastructure services. It serves services comprising product engineering, life cycle solutions and
various industries such as banking and capital market which business process management; consulting and systems integration
includes, retail banking, credit cards and payments, wealth services comprising consulting, enterprise solutions, systems
management and brokerage, corporate banking solutions and integration and advanced technologies.
investment banking technology.

Financial Snapshot Financial Snapshot

Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)

Promoters : 52.3 29.0 Promoters : 12.8

10.9
Institutions : 37.1 27.4 Institutions : 57.0

25.6 8.9
Non-institutional Non-institutional 8.4
and others : 10.6 and others : 13.1

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

6545.8 18.6 70522.0 30.4

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

1140.6 14.5 20341.0 24.1

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

837.5 0.07 16100.0 0.00

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

50 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 RANK Pidilite Industries RANK Eicher Motors
7 BSE CODE
FACE VALUE (`)
: 500331
: 1 8 BSE CODE
FACE VALUE (`)
: 505200
: 10
MARKET CAP(` Cr.) : 57287.3 MARKET CAP(` Cr.) : 56405.9
CMP (`) : 1142.6 CMP (`) : 20364.3
Pidilite Industries is engaged in the manufacture of adhesives and Eicher Motors is the parent of Royal Enfield. It is engaged in
glues, including rubber-based glues and adhesives. Its segments manufacturing automobile products and related components. Its
include Consumer & Bazaar Products, Industrial Products and business verticals include motorcycles, commercial vehicles and
Others. The Consumer & Bazaar Products segment includes personal utility vehicles. The Company, through its joint venture,
products, such as adhesives, sealants, art and craft material and Volvo Eicher Commercial Vehicles, designs, manufactures and
others, construction and paint chemicals. The Industrial Products markets trucks and buses.
segment covers products, such as industrial adhesives, synthetic
resins, organic pigments, pigment preparations and surfactants.

Financial Snapshot Financial Snapshot

Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)

Promoters : 69.8 21.5 21.1 Promoters : 49.3 43.3

38.3
Institutions : 19.5 Institutions : 37.0

Non-institutional Non-institutional
8.2
and others : 10.8 and others : 13.6
5.5
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

6218.8 37.7 9219.3 45.3

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

1369.8 27.4 2864.4 31.3

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

961.5 0.03 1923.2 0.02

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 51

 Cover Story Super 50
Larsen & Toubro
RANK Infotech RANK Aurobindo Pharma
9 BSE CODE
FACE VALUE (`)
: 540005
: 1 10 BSE CODE
FACE VALUE (`)
: 524804
: 1
MARKET CAP(` Cr.) : 31005.8 MARKET CAP(` Cr.) : 44681.3
CMP (`) : 1718.5 CMP (`) : 718.3
Larsen & Toubro Infotech is engaged in computer programming, Aurobindo Pharma is engaged in producing oral and injectable
consultancy and related activities. The Industrial Cluster segment generic formulations and active pharmaceutical ingredients. Its
consists of the business verticals of energy and process, consumer product portfolio is spread over seven therapeutic/product areas,
packaged goods, retail, pharmaceuticals, hi-tech and consumer including antibiotics, anti-retrovirals, cardiovascular, central
electronics, automotive and aerospace, plant equipment, utilities, nervous system, gastroenterologicals, anti-allergies and anti-
engineering and construction. The Services Cluster segment diabetics. It is engaged in developing a range of oncology and
consists of the business verticals of banking and financial services, hormonal products. It is also developing inhalation and
insurance, media and entertainment, travel and logistics. dermatology products, such as pressurized metered-dose inhaler. It
manufactures and sells nutritional supplements.

Financial Snapshot Financial Snapshot

Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)

Promoters : 74.8 Promoters : 51.9

12.4 19.9
11.8
Institutions : 15.2 Institutions : 34.5 18.9
10.4
Non-institutional Non-institutional
and others : 9.9 and others : 13.6
15.8
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

7306.5 41.6 16499.8 22.7

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

1457.2 33.1 3315.8 23.0

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

1112.4 0.00 2419.8 0.41

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

52 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Kotak Mahindra
RANK Bank RANK Maruti Suzuki India
11 BSE CODE
FACE VALUE (`)
: 500247
: 5 12 BSE CODE
FACE VALUE (`)
: 532500
: 5
MARKET CAP(` Cr.) : 248941.1 MARKET CAP(` Cr.) : 217046.0
CMP (`) : 1215.8 CMP (`) : 6955.2
Kotak Mahindra Bank operates in the segments of Treasury, BMU Maruti Suzuki India is engaged in the manufacture, purchase and
and Corporate Centre, which includes dealing in debt, equity, sale of motor vehicles, components and spare parts. Its other
money market, forex market, derivatives, investments and primary activities comprise facilitation of pre-owned car sales, fleet
dealership of Government securities and Balance Sheet management and car financing. Its geographical segments include
Management unit; Retail Banking, which includes lending and the domestic segment and the overseas segment. Its product
credit cards; Corporate/Wholesale Banking, which includes portfolio includes Alto 800, Alto K10, Wagon R, Celerio, Ritz, Swift,
wholesale borrowings and lending, and other related services; DZire, Ertiga, Omni, Eeco, Gypsy and Ciaz.
Vehicle Financing, which includes retail vehicle finance and
wholesale trade finance.

Financial Snapshot Financial Snapshot

Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)
30.5
Promoters : 30.0 25.1 Promoters : 56.2 28.5

Institutions : 49.0 Institutions : 36.1

21.6
Non-institutional 20.3 Non-institutional
and others : 21.0 and others : 7.7 13.3

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

25131.1 13.0 82041.1 28.3

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

29655.1 13.8 11349.4 19.4

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

6147.1 1.16 7717.4 0.00

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 53

 Cover Story Super 50

RANK Britannia Industries RANK Jubilant FoodWorks

13 BSE CODE
FACE VALUE (`)
: 500825
: 1 14 BSE CODE
FACE VALUE (`)
: 533155
: 10
MARKET CAP(` Cr.) : 74820.7 MARKET CAP(` Cr.) : 17403.4
CMP (`) : 3052.1 CMP (`) : 1269.2
Britannia Industries is engaged in the manufacture of biscuits, Jubilant FoodWorks is a food service company. It has the rights to
cakes and rusks. Its product brands under biscuits category include develop and operate Domino’s Pizza brand in India, Sri Lanka,
Good Day, Marie Gold, Tiger, Bourbon, Little Hearts etc. Its Bangladesh and Nepal. It has the rights to develop and operate
products under breads include Whole Wheat Breads, White Dunkin’ Donuts restaurants for India. Domino’s Pizza India
Sandwich Breads and Bread Assortment. Its products under dairy operates approximately 1,040 restaurants in India covering
category include Cheese, Fresh Dairy and Accompaniments. approximately 240 cities across the country.

Financial Snapshot Financial Snapshot

Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)
14.8
Promoters : 50.7 27.5 26.2 Promoters : 44.9

Institutions : 29.2 Institutions : 46.5 13.9

13.5
Non-institutional Non-institutional
and others : 20.1 and others : 8.5
9.2
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

9990.1 47.5 3018.4 34.2

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

1526.0 33.0 303.1 22.3

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

1004.1 0.06 196.2 0.00

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

54 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Hexaware
RANK Technologies RANK UPL
15 BSE CODE
FACE VALUE (`)
: 532129
: 2 16 BSE CODE
FACE VALUE (`)
: 512070
: 2
MARKET CAP(` Cr.) : 10546.1 MARKET CAP(` Cr.) : 41058.1
CMP (`) : 346.9 CMP (`) : 867.3
Hexaware Technologies is a provider of IT, BPO and consulting UPL provides crop protection solutions. It is engaged in the
services. It is engaged in computer programming, consultancy business of agrochemicals, industrial chemicals, chemical
services, IT consulting, software development and business process intermediates and specialty chemicals. The Agro activity segment
management. Its segments include Travel, Transportation, Banking, includes the manufacturing and marketing of conventional
Financial Services, Insurance, Healthcare, Manufacturing, agrochemical products, seeds and other agricultural related
Consumer and Others. Its business units provide offerings in the products. The Non-agro activity segment includes manufacturing
areas of Shrink IT and Grow Digital. and marketing of industrial chemical and other non-agricultural
related products.

Financial Snapshot Financial Snapshot

Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)

Promoters : 62.7 14.6 Promoters : 27.9

22.8
Institutions : 28.1 Institutions : 51.8
18.0
Non-institutional Non-institutional
and others : 9.2 and others : 12.0 12.9
7.5 7.1
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

3942.0 34.2 17506.0 21.5

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

641.8 27.5 3181.0 25.8

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

499.3 0.00 2123.0 0.72

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 55

 Cover Story Super 50
Tata Consultancy
RANK Services RANK HCL Technologies
17 BSE CODE
FACE VALUE (`)
: 532540
: 1 18 BSE CODE
FACE VALUE (`)
: 532281
: 2
MARKET CAP(` Cr.) : 775073.8 MARKET CAP(` Cr.) : 145940.5
CMP (`) : 2053.8 CMP (`) : 1060.3
Tata Consultancy Services is engaged in providing IT services, HCL Technologies is engaged in providing a range of software
digital and business solutions. The Company’s segments include development services, BPO services and IT infrastructure services.
banking, finance and insurance services; manufacturing; retail and The software services segment provides application development
consumer packaged goods; telecom, media and entertainment, and and maintenance, enterprise application, software as a service,
others, such as energy, resources and utilities, hi-tech, life science application services, engineering, and research and development
and healthcare, s-Governance, travel, transportation and services to global customers. The infrastructure management
hospitality. Its services portfolio consists of IT and assurance services segment involves managing customer’s IT assets. The BPO
services, business intelligence and performance management, services segment includes contact center and help desk services.
business process services, cloud services, connected marketing
solutions, consulting, engineering and industrial services, etc.
Financial Snapshot Financial Snapshot
Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)

Promoters : 72.1 10.8 Promoters : 60.0

12.0
Institutions : 23.5 Institutions : 36.5

Non-institutional 7.6 7.6 Non-institutional

and others : 4.4 and others : 3.5 8.4
7.6
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

123104.0 39.8 50569.0 31.4

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

34144.0 30.3 11080.0 25.1

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

25880.0 0.00 8709.0 0.02

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

56 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 RANK PI Industries RANK SRF
19 BSE CODE
FACE VALUE (`)
: 523642
: 1 20 BSE CODE
FACE VALUE (`)
: 503806
: 10
MARKET CAP(` Cr.) : 11582.2 MARKET CAP(` Cr.) : 12696.9
CMP (`) : 916.5 CMP (`) : 2255.3
PI Industries is engaged in the manufacturing and distribution of SRF is engaged in manufacturing of chemicals, polymers, technical
agrochemicals. It also manufactures plant nutrients, plant textiles and packaging films. Its segments include Technical Textiles
protection, specialty fertilizers and hybrid seeds. It offers Business, which includes nylon tire cord fabric, belting fabric,
insecticides under various brands, including Lepido, Dodger, Colt, coated fabric, polyester tire cord fabric and industrial yarns and its
Osheen, Colfos, Fosmite, Jumbo, Foratox, Carina, Maxima and research and development; Chemicals and Polymers Business,
Vibrant. It provides services in various areas including contract which includes refrigerant gases, pharmaceuticals, engineering
research, process development, analytical method development, plastics business, etc.
process safety data generation and process detailed engineering.

Financial Snapshot Financial Snapshot

Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)

Promoters : 51.4 Promoters : 52.3 29.8

18.2
Institutions : 32.4 Institutions : 28.5 23.4
14.5
Non-institutional Non-institutional
and others : 16.2 and others : 19.2

TOTAL : 100 5.7 TOTAL : 100 7.1

As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

2308.7 25.2 5684.9 11.5

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

472.7 20.8 705.6 13.7

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

367.5 0.04 461.7 0.88

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 57

 Cover Story Super 50

RANK Astral Poly Technik RANK DLF

21 BSE CODE
FACE VALUE (`)
: 532830
: 1 22 BSE CODE
FACE VALUE (`)
: 532868
: 2
MARKET CAP(` Cr.) : 13642.4 MARKET CAP(` Cr.) : 29211.9
CMP (`) : 1087.3 CMP (`) : 164.5
Astral Poly Technik is engaged in the production of plastic DLF is a real estate company primarily focused on the
products and manufacturing and trading of pipes, fittings and development and sale of residential real estate, which includes
adhesive solutions. Its product range includes pipe category for plotted developments, houses, villas, apartments of varying sizes
plumbing, industrial, drainage, fire protection, agriculture, and integrated townships, with a focus on the luxury residential
electrical conduit and ancillary, and adhesive category for developments. Its operations span various aspects of real estate
construction, maintenance, wood care and automotive. Its pipe development, from the identification and acquisition of land, to
manufacturing facilities offer products, such as chlorinated PVC planning, execution, construction and marketing of projects. It is
piping system, unplasticized PVC piping system, electrical conduit also engaged in the business of generation of power, provision of
pipes, cyanoacrylates, solvent cements, tile adhesives, silicone maintenance services, hospitality and recreational activities.
sealant, putty, etc.
Financial Snapshot Financial Snapshot
Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)

Promoters : 58.5 22.5 Promoters : 75.0

63.2
Institutions : 27.2 Institutions : 18.1
19.0 40.3
Non-institutional Non-institutional
and others : 14.4 and others : 7.0
16.1
-5.2
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

2138.9 23.9 6706.8 21.7

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

272.3 19.2 11566.2 14.5

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

178.3 0.19 4292.4 0.51

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

58 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 RANK Jubilant Life Sciences RANK The Ramco Cements
23 BSE CODE
FACE VALUE (`)
: 530019
: 1 24 BSE CODE
FACE VALUE (`)
: 500260
: 1
MARKET CAP(` Cr.) : 11975.6 MARKET CAP(` Cr.) : 14107.5
CMP (`) : 767.2 CMP (`) : 674.6
Jubilant Life Sciences is a pharmaceutical and life sciences The Ramco Cements manufactures cement, ready-mix concrete
company engaged in providing basic organic chemicals. The and dry mortar products. It operates in two segments: Cement and
Pharmaceuticals segment consists of generics, including active Power generation from Windmills. It is also engaged in the sale of
pharmaceuticals ingredients and solid dosage formulations; surplus electricity generated from its windmills and thermal power
specialty pharmaceuticals (sterile products), including plants. The principal product of the Company is Portland cement,
radiopharmaceuticals, allergy therapy products and contract which is manufactured in over eight production facilities that
manufacturing operations of sterile injectables; drug discovery include integrated cement plants and grinding units with a total
solutions, and Indian branded pharmaceuticals. The Life Sciences production capacity of approximately 16.45 million tons per
Ingredients segment includes specialty intermediates, life sciences annum. Its Dry Mix Division manufactures pre-mixed dry mortars,
chemicals and nutritional products. such as plasters, wall putty and tile adhesive.
Financial Snapshot Financial Snapshot
Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)
46.5
Promoters : 50.7 Promoters : 42.8
48.7
Institutions : 29.4 Institutions : 38.3

27.7
Non-institutional 20.4 Non-institutional
and others : 19.9 and others : 18.9
6.2
TOTAL : 100 TOTAL : 100 2.0
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

7557.8 15.2 4583.8 16.3

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

1143.4 16.9 852.1 14.2

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

634.4 0.85 560.2 0.28

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 59

 Cover Story Super 50

RANK Asian Paints RANK Titan Company

25 BSE CODE
FACE VALUE (`)
: 500820
: 1 26 BSE CODE
FACE VALUE (`)
: 500114
: 1
MARKET CAP(` Cr.) : 137927.8 MARKET CAP(` Cr.) : 93736.9
CMP (`) : 1402.5 CMP (`) : 1017.7
Asian Paints is engaged in the business of manufacturing, selling Titan Company operates across the segments of Watches, Jewellery,
and distribution of paints, coatings, products related to home decor, Eyewear and Others. The Company offers plain and studded gold
bath fittings and related services. Its business segments are Paints jewelry brands, such as Tanishq, GoldPlus, Zoya, and Mia. The
and Home Improvement. The Home Improvement segment Company’s watches and accessories are retailed through World of
includes its bath fittings business. It manufactures a range of paints Titan, Helios and Fastrack stores. It offers frames, contact lenses,
for decorative and industrial use. Its products include special and Sunglasses in brands, such as Eye+. The Company’s eyewear
effects, plain finishes and distempers for interior walls; textures brands are retailed through Titan Eye Plus stores. It also offers
finishes, plain finishes and design for exteriors for exterior walls; precision engineering component and sub-assemblies and machine
wall papers; wood finishes; metal finishes; water proofing solutions; building and automation solutions.
adhesives, painting tools and implements.
Financial Snapshot Financial Snapshot
Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)

Promoters : 52.8 13.6 Promoters : 52.9

12.9
10.7
Institutions : 26.2 Institutions : 26.8
10.2
Non-institutional Non-institutional 9.6
7.9
and others : 21.1 and others : 20.3

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

19983.4 36.6 16156.0 33.7

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

3134.8 25.6 1585.5 23.7

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

2051.7 0.06 1104.7 0.02

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

60 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 RANK Divis Laboratories RANK Sundram Fasteners
27 BSE CODE
FACE VALUE (`)
: 532488
: 2 28 BSE CODE
FACE VALUE (`)
: 500403
: 1
MARKET CAP(` Cr.) : 43426.7 MARKET CAP(` Cr.) : 10938.2
CMP (`) : 1639.0 CMP (`) : 510.6
Divi’s Laboratories has two manufacturing units and is among the Sundram Fasteners is engaged in manufacturing high tensile
top pharmaceutical companies in India. It is recognized as a fasteners, motor vehicle parts and accessories. Its product range
‘Reliable Supplier of generic APIs and a trustworthy custom includes cold extruded parts, powder metal parts, radiator caps,
manufacturer to Big Pharma. It is the leading manufacturer of gear shifters, hot forged parts, precision forged differential gears,
APIs, Intermediates and Registered starting materials offering high water pumps, oil pumps, fuel pumps, belt tensioners, rocker arm
quality products with the highest level of compliance and integrity assemblies, cam followers, bearing housings, hubs, shafts, tappets,
to over 95 countries. other engine components, and valve train parts. Its high tensile
fasteners product range includes standard fasteners and special
fasteners. Its powder metal parts product range includes bushes,
structural parts and iron powder.
Financial Snapshot Financial Snapshot
Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)
11.3 33.9
Promoters : 52.0 Promoters : 49.5

Institutions : 35.0 Institutions : 23.1 25.8

5.6
Non-institutional Non-institutional
and others : 13.0 3.2 and others : 27.3

TOTAL : 100 TOTAL : 100 7.6

As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

3912.8 21.7 3887.8 28.4

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

1233.7 15.5 591.4 28.1

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

877.0 0.01 388.2 0.46

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 61

 Cover Story Super 50

RANK HDFC Bank RANK Rajesh Exports

29 BSE CODE
FACE VALUE (`)
: 500180
: 2 30 BSE CODE
FACE VALUE (`)
: 531500
: 1
MARKET CAP(` Cr.) : 581461.7 MARKET CAP(` Cr.) : 16897.7
CMP (`) : 2091.6 CMP (`) : 568.0
HDFC Bank offers a range of banking services covering Rajesh Exports is engaged in the business of gold and gold
commercial and investment banking on the wholesale side and products. It is engaged in the manufacturing and marketing of
transactional/branch banking on the retail side. It also offers jewelry to consumers across the world. It offers gold medallions
financial services. The Treasury segment primarily consists of net and gold bullion. It is engaged in producing handmade jewelry,
interest earnings from the Bank’s investment portfolio, money casting jewelry, machine chains, stamped jewelry, studded jewelry,
market borrowing and lending, gains or losses on investment tube jewelry and electro-formed jewelry. It sells gold and diamond
operations and on account of trading in foreign exchange and jewelry in retail under the brand name of SHUBH Jewellers. It has
derivative contracts. combined capacity to manufacture approximately 350 tons of gold
jewelry and gold products per annum.

Financial Snapshot Financial Snapshot

Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)
20.6 59.2
Promoters : 26.5 Promoters : 54.0

Institutions : 54.9 19.0 Institutions : 24.2

18.0
Non-institutional Non-institutional
37.2
and others : 18.6 and others : 21.8

TOTAL : 100 TOTAL : 100 25.1

As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

85287.8 16.7 187686.1 13.7

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

72880.5 18.4 1878.3 19.4

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

18560.8 1.43 1265.8 1.22

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

62 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Kansai Nerolac
RANK Paints RANK Sun TV Network
31 BSE CODE
FACE VALUE (`)
: 500165
: 1 32 BSE CODE
FACE VALUE (`)
: 532733
: 5
MARKET CAP(` Cr.) : 24693.3 MARKET CAP(` Cr.) : 22642.1
CMP (`) : 451.9 CMP (`) : 595.1
Kansai Nerolac Paints offers a range of products, including Sun TV Network is engaged in producing and broadcasting
decorative, Automotive Coatings and Performance coatings. It has satellite television and radio software programming in the regional
coating solutions across the Decorative, Wood Coatings, General languages of South India. It operates television channels in
Industrial, High Performance Coatings, Powder Coatings, approximately four South Indian languages to viewers in India, Sri
Automotive and Auto Refinish market segments. It serves its Lanka, Singapore, Malaysia, UK, Europe, Middle East, US,
customers through four manufacturing facilities located in Australia, South Africa and Canada. Its satellite channels are Sun
Maharashtra, Haryana, Uttar Pradesh, Tamil Nadu and over TV, Surya TV, Gemini TV and Udaya TV. It is also into the business
hundred strategically located depots. of FM radio broadcasting. It has the license to operate an IPL
franchise Sun Risers Hyderabad.

Financial Snapshot Financial Snapshot

Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)
26.1
Promoters : 75.0 25.3 Promoters : 75.0 11.0
10.5
Institutions : 15.2 Institutions : 16.4

Non-institutional Non-institutional
8.9
and others : 9.8 and others : 8.6 7.4

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

5296.4 26.2 2963.0 38.9

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

787.0 17.3 1696.0 25.5

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

513.8 0.01 1112.7 0.00

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 63

 Cover Story Super 50

RANK Bajaj Finserv RANK Piramal Enterprises

33 BSE CODE
FACE VALUE (`)
: 532978
: 5 34 BSE CODE
FACE VALUE (`)
: 500302
: 2
MARKET CAP(` Cr.) : 97056.3 MARKET CAP(` Cr.) : 39039.5
CMP (`) : 6416.7 CMP (`) : 2315.1
Bajaj Finserv is engaged in promoting financial services like Piramal Enterprises is engaged in the business of pharmaceuticals,
finance, insurance and wealth management, through its including R&D, financial services and information management
investments in subsidiaries and JVs. It is also engaged in the through its subsidiaries. Its pharmaceutical business consists of
business of generating power through wind turbines. It focuses on manufacturing and sale of own and traded bulk drugs and
six categories: consumer lending, SME lending, commercial formulations. Its Healthcare segment includes pharma solutions,
lending, rural lending, fixed deposits and value-added services. critical care, consumer products and imaging. Its Financial Services
segment includes wholesale lending, alternative asset management
and investments in Shriram Group. DRG’s product and services
portfolio consists of data and analytics, research products and
global consulting services.
Financial Snapshot Financial Snapshot
Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)
68.4
Promoters : 58.4 54.4 Promoters : 50.0

Institutions : 14.6 Institutions : 31.8

Non-institutional Non-institutional
and others : 27.1 and others : 18.3
24.9
23.8
TOTAL : 100 18.6 TOTAL : 100 21.6
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

30601.0 14.6 10639.4 8.5

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

10861.6 23.3 4942.1 23.4

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

4339.9 3.01 4840.2 1.67

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

64 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 RANK Tech Mahindra RANK Dabur India
35 BSE CODE
FACE VALUE (`)
: 532755
: 5 36 BSE CODE
FACE VALUE (`)
: 500096
: 1
MARKET CAP(` Cr.) : 79367.4 MARKET CAP(` Cr.) : 79227.0
CMP (`) : 825.1 CMP (`) : 433.4
Tech Mahindra is engaged in the business of computer Dabur India is a fast-moving consumer goods company which
programming, consultancy and related services. Its segments operates in various product categories like hair care, oral care,
include IT Services and BPO. The telecom business provides healthcare, skin care, home care and foods. The Consumer Care
consulting-led integrated portfolio services to customers, which are Business unit includes healthcare, which consists of health
telecom equipment manufacturers, telecom service providers, IT supplements, digestives, OTC, ayurvedic ethical products, home
infrastructure services, and BPO, as well as enterprise services and personal care products. Its foods business consists of fruit-
(banking, financial services and insurance (BFSI), retail and based beverages and culinary pastes business. Its International
logistics, and manufacturing, among others) of IT and IT-enabled Business unit offers a range of hair, skin and oral care products in
services delivered through a network of various locations around the Middle East, Africa, South Asia, Europe and America.
the world.
Financial Snapshot Financial Snapshot
Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)

Promoters : 35.9 13.1 Promoters : 67.9 10.1 10.3

Institutions : 51.5 Institutions : 25.1

Non-institutional Non-institutional
and others : 12.6
6.7 and others : 7.0
5.4 2.1
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

30772.9 24.3 7748.3 28.0

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

5041.1 22.1 1745.9 26.3

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

3786.1 0.13 1357.5 0.17

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 65

 Cover Story Super 50

RANK Tata Chemicals RANK Mindtree

37 BSE CODE
FACE VALUE (`)
: 500770
: 10 38 BSE CODE
FACE VALUE (`)
: 532819
: 10
MARKET CAP(` Cr.) : 14875.2 MARKET CAP(` Cr.) : 15066.6
CMP (`) : 557.1 CMP (`) : 897.4
Tata Chemicals is a manufacturer of soda ash and sodium Mindtree is an international IT consulting and implementation
bicarbonate for diverse industries like glass, detergents, silicates, company that delivers business solutions through global software
textiles, food, pharmaceuticals, animal feed, mining and chemical development. It operates in five segments: Retail, CPG and
processing. It operates through four segments: Inorganic Manufacturing; Banking, Financial Services and Insurance;
Chemicals, which includes soda ash, salt, sodium bicarbonate, Technology, Media and Services; Travel and Hospitality, and
marine chemicals, caustic soda and cement; Fertilisers, which Others. It offers services in the areas of analytics and information
includes fertilizers and other traded products. management, application development and maintenance, business
process management, business technology consulting, cloud, digital
business’s, independent testing, etc.

Financial Snapshot Financial Snapshot

Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)
177.0 15.9
Promoters : 30.6 Promoters : 13.3

Institutions : 48.2 Institutions : 50.9

Non-institutional 48.7 Non-institutional

and others : 21.2 and others : 35.8 7.0
6.0
TOTAL : 100 -2.9 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

14432.3 22.2 5462.8 26.5

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

3566.5 27.9 759.2 21.5

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

2653.3 0.55 570.1 0.11

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

.
. Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

. 66 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 RANK Hindustan Unilever RANK United Breweries
39 BSE CODE
FACE VALUE (`)
: 500696
: 1 40 BSE CODE
FACE VALUE (`)
: 532478
: 1
MARKET CAP(` Cr.) : 390794.9 MARKET CAP(` Cr.) : 36439.0
CMP (`) : 1735.8 CMP (`) : 1333.4
Hindustan Unilever is engaged in the FMCG business comprising United Breweries is engaged in the manufacture and sale of beer,
of home, personal care, foods and refreshments. The Company’s including licensing of brands. It offers a range of brands like Kingfisher
segments are Soaps and Detergents, Personal Products, Beverages, Premium, Kingfisher Strong, Kingfisher Ultra, Kingfisher Ultra Max,
Packaged Foods and Others which includes exports, chemicals, Kingfisher Blue, Bullet, Cannon 10000, Kalyani Black Label, Ub
water business and infant care products. The Others segment also Export, Zingaro and London Pilsner. It has licensed its brands for
includes export sale of marine and leather products. manufacture and supply of beer at approximately three international
locations, such as the United Kingdom, Australia and New Zealand.
The Company operates through approximately 20 owned breweries
and approximately 8 contract breweries. It has a capacity to produce
approximately 20 million hectoliters of beer per annum.
Financial Snapshot Financial Snapshot
Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)

Promoters : 67.2 8.7 Promoters : 57.7

7.2
Institutions : 19.4 Institutions : 36.6 14.4 14.9

Non-institutional 4.2 Non-institutional

12.1
and others : 13.4 and others : 5.7

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

36243.0 102.5 12430.6 22.1

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

7332.0 74.8 655.5 15.7

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

5227.0 0.00 394.6 0.12

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 67

 Cover Story Super 50

RANK Varun Beverages RANK Ambuja Cements

41 BSE CODE
FACE VALUE (`)
: 540180
: 10 42 BSE CODE
FACE VALUE (`)
: 500425
: 2
MARKET CAP(` Cr.) : 14585.8 MARKET CAP(` Cr.) : 41301.4
CMP (`) : 793.0 CMP (`) : 214.5
Varun Beverages is engaged in manufacturing, selling, bottling and Ambuja Cements is engaged in the manufacture of clinkers and
distribution of beverages of Pepsi brand. It produces and distributes cement. It operates through Cement and cement-related products
a range of carbonated soft drinks, as well as a selection of non- segment. The Company’s product, Ambuja Plus Roof Special, is
carbonated beverages including packaged drinking water. In suited for constructing roofs and slabs. It also offers install rooftop
addition, it also franchises for Ole brand of PepsiCo products in Sri rainwater harvesting technology. Its products also include Ambuja
Lanka. It operates over 20 production facilities across India and Powercem, which caters the ready-mix sector; Ambuja Railcem,
over five production facilities in its international licensed which is designed for railways, and Ambuja Buildcem, which serves
territories. the requirements of the mass housing segment. It also co-owns two
brands in micro materials category called Alccofine and Dirk
Pozzocrete.
Financial Snapshot Financial Snapshot
Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)

Promoters : 73.6 41.6 Promoters : 63.5 24.8

38.0
Institutions : 18.8 Institutions : 28.8
17.5
Non-institutional Non-institutional
17.7
and others : 7.7 and others : 7.8
10.9
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

4516.2 12.1 25282.3 14.7

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

504.2 12.3 2983.9 9.5

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

212.7 1.50 1932.1 0.00

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

68 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Endurance
RANK Voltas RANK Technologies
43 BSE CODE
FACE VALUE (`)
: 500575
: 1 44 BSE CODE
FACE VALUE (`)
: 540153
: 10
MARKET CAP(` Cr.) : 17409.5 MARKET CAP(` Cr.) : 17848.0
CMP (`) : 542.3 CMP (`) : 1342.6
Voltas is an air-conditioning and engineering company. The Company is Endurance Technologies manufactures aluminium casting
engaged in room air conditioners, contract revenue, commercial (including alloy wheels), suspension, transmission and braking
refrigeration products and sale of services. Its segments include products. Its products include aluminium casting, which offers high
Electro-mechanical Projects and Services; Engineering Products and pressure die castings, low pressure die castings, gravity die castings,
Services; Unitary Cooling Products for Comfort and Commercial use, and alloy wheels; transmission which offers 2/3 wheeler clutch
and Others. It is engaged in the field of air-conditioning, refrigeration, as assemblies, continuous variable transmissions (CVTs), and friction
well as in the business of Electro-mechanical Projects as an engineering, plates; braking, which offers hydraulic disc brakes, tandem master
procurement and construction contractor. It is also engaged in the cylinder assemblies, etc.
business of engineering product services for mining, water management
and treatment, construction equipment and textile industry.
Financial Snapshot Financial Snapshot
Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)
22.4 23.6
Promoters : 30.3 Promoters : 82.5
17.5
Institutions : 47.9 Institutions : 15.1
14.0
Non-institutional Non-institutional
and others : 21.8 and others : 2.4
4.9 10.2
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

6427.9 21.6 6666.0 22.3

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

813.0 15.9 602.9 20.0

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

574.1 0.04 390.8 0.37

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 69

 Cover Story Super 50

RANK Torrent Power RANK Aarti Industries

45 BSE CODE
FACE VALUE (`)
: 532779
: 10 46 BSE CODE
FACE VALUE (`)
: 524208
: 5
MARKET CAP(` Cr.) : 11323.3 MARKET CAP(` Cr.) : 12493.4
CMP (`) : 242.2 CMP (`) : 1395.4
Torrent Power is an integrated utility engaged in the business of Aarti Industries is a manufacturer of specialty chemicals,
power generation, transmission and distribution. It is also engaged pharmaceuticals, home and personal care products. Its Speciality
in the business of cables manufacturing. It has an aggregate Chemicals segment serves polymer and additives; agrochemicals and
generating capacity of approximately 3,334 megawatts. Its intermediates; dyes, pigments, paints and printing inks; pharma
generation facilities include an approximately 1,147.5 MW SUGEN intermediates, and fuel additives, rubber chemicals and resins
Mega Power Plant near Surat; an over 382.5 MW UNOSUGEN markets. Its Pharmaceuticals segment serves active pharmaceutical
Power Plant near Surat; an approximately 1,200 MW DGEN Power ingredients, and intermediates for innovators and generic
Plant at Dahej SEZ near Bharuch; an approximately 422 MW companies. Its Home & Personal Care Chemicals segment serves
AMGEN Power Plant at Ahmedabad and more. non-ionic surfactants and concentrates for shampoo, hand wash and
dish wash markets. It is integrated across over 70 products.
Financial Snapshot Financial Snapshot
Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)
72.4 22.8
Promoters : 53.6 Promoters : 52.7

Institutions : 25.4 Institutions : 18.8

14.7
Non-institutional Non-institutional
and others : 21.1 23.1 and others : 28.5
7.8
TOTAL : 100 7.3 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

11527.8 13.9 3806.1 17.0

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

2249.2 13.3 560.6 23.5

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

952.1 1.23 346.1 1.32

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

70 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 RANK Tata Steel RANK Marico
47 BSE CODE
FACE VALUE (`)
: 500470
: 10 48 BSE CODE
FACE VALUE (`)
: 531642
: 1
MARKET CAP(` Cr.) : 57845.9 MARKET CAP(` Cr.) : 46793.8
CMP (`) : 505.9 CMP (`) : 339.2
Tata Steel is a diversified steel producer. It is engaged in the Marico is a consumer products company operating in the beauty
business of steel making, including raw material and finishing and wellness space. The Company’s principal products include
operations. The Company’s segments are Steel and Others. The edible oils and value-added hair oils. It offers various brands in the
Others business segment comprises tubes, bearings, refractories, categories of hair care, skin care, health foods, male grooming and
pigments, port operations and town services. Its products include fabric care. In India, the Company manufactures and markets
flat products, including hot rolled, cold rolled, metallic coated, products under various brands, such as Parachute, Parachute
direct rolled, tubes, pre-finished steels, packaging steels, Advansed, Nihar, Nihar Naturals, Saffola, Hair & Care, Revive,
electroplated steels, electrical steels and narrow strip. Mediker, Livon, Set-wet and Code 10.

Financial Snapshot Financial Snapshot

Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)

Promoters : 33.1 48.0 Promoters : 59.7

13.2
Institutions : 44.2 Institutions : 32.5 11.7
24.4
Non-institutional Non-institutional
7.8
and others : 21.6 and others : 7.8

TOTAL : 100 -3.4 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

133175.5 19.6 6333.1 41.8

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

26496.0 39.0 1133.3 34.1

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

17588.7 1.52 827.6 0.12

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 71

 Cover Story Super 50
Indian Oil
RANK Corporation RANK Shree Cement
49 BSE CODE
FACE VALUE (`)
: 530965
: 10 50 BSE CODE
FACE VALUE (`)
: 500387
: 10
MARKET CAP(` Cr.) : 131206.6 MARKET CAP(` Cr.) : 55639.6
CMP (`) : 140.9 CMP (`) : 16724.7
Indian Oil Corporation is engaged in the refining business. Its Shree Cement Ltd’s principal products/services are cement and
segments include Sale of Petroleum Products, Sale of clinker. The Company’s manufacturing operations are spread over
Petrochemicals and Other businesses. Its Other businesses segment North and East India across approximately six states. It has a
includes sale of gas, explosives and cryogenics, wind mill and solar cement production capacity of approximately 25.6 million tons per
power generation, and oil and gas exploration activities. Its business annum. Its total power generation capacity is approximately 610
interests span the entire hydrocarbon value-chain ranging from megawatts. It operates waste heat recovery plants (WHRP) of
refining, pipeline transportation and marketing of petroleum approximately 110 megawatts. The Company also operates a
products to exploration and production of crude oil and gas, separate trading division catering to third-party buyers and sellers.
marketing of natural gas and petrochemicals. It produces synthetic gypsum to replace use of natural gypsum in
cement manufacturing.
Financial Snapshot Financial Snapshot
Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%)
32.9
Promoters : 54.1 Promoters : 64.8
23.8 20.1
Institutions : 19.1 Institutions : 29.7

Non-institutional Non-institutional 15.2

and others : 26.8 and others : 5.5
-0.4 11.2
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-17

Gross Sales (` Cr) ROCE (%) Gross Sales (` Cr) ROCE (%)

515548.8 21.7 10159.6 18.4

Operating profit (` Cr) ROE (%) Operating profit (` Cr) ROE (%)

37380.0 20.1 1962.4 16.7

Net profit (` Cr) Total Debt/Equity(x) Net profit (` Cr) Total Debt/Equity(x)

21715.2 0.58 1384.2 0.38

Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

72 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

Cover Story Elite 100

National Peroxide Suven Life Sciences

BSE CODE : 500298 BSE CODE : 530239
RANK RANK
1 2
FACE VALUE (`) : 10 FACE VALUE (`) : 1
MARKET CAP(`/Cr.) : 1511.8 MARKET CAP(`/Cr.) : 3124.8
CMP (`) : 2560.9 CMP (`) : 239.4
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

311.2 147.5 95.8 16.7 10.9 625.3 200.2 123.7 26.1 17.2

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
25.2 104.6
24.5 Promoters : 70.8 96.2 Promoters : 60

Institutions : 0 Institutions : 8.5

Non-institutional 51.1 Non-institutional

and others : 29.2 and others : 31.5
4.4
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Unichem Laboratories Dr. Lal Pathlabs

BSE CODE : 506690 BSE CODE : 539524
RANK RANK
3 4
FACE VALUE (`) : 2 FACE VALUE (`) : 10
MARKET CAP(`/Cr.) : 1367.2 MARKET CAP(`/Cr.) : 8480.8
CMP (`) : 196.7 CMP (`) : 1012.5
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

1383.7 3249.4 2545.1 162.8 136 1056.9 262.2 171.8 37.8 25.3

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
107.8 111.1
Promoters : 50.6 Promoters : 56.9

Institutions : 8.4 21.7 Institutions : 25.1

21

Non-institutional Non-institutional
and others : 41 and others : 18
17.3
4.9 TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 73

Cover Story Elite 100

Nesco TTK Prestige

BSE CODE : 505355 BSE CODE : 517506
RANK RANK
6
: 2 : 10
5
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 3074.9 MARKET CAP(`/Cr.) : 9233.2
CMP (`) : 432.2 CMP (`) : 7638.6
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

321.9 243.5 178.7 26.2 19.3 1988.1 366.5 263.5 34.7 28.2

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
144.2
Promoters : 68.2 Promoters : 70.4
21.9
Institutions : 7.9 109.5 Institutions : 18.5
20.1
18.6 Non-institutional Non-institutional
and others : 23.9 and others : 11.1
70.6

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Akzo Nobel India TeamLease Services

BSE CODE : 500710 BSE CODE : 539658
RANK RANK
7 8
FACE VALUE (`) : 10 FACE VALUE (`) : 10
MARKET CAP(`/Cr.) : 7982.8 MARKET CAP(`/Cr.) : 4877.1
CMP (`) : 1713.8 CMP (`) : 2935.4
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

3041.7 487.3 400.1 42.3 34.8 3624.1 75.3 73.7 18.4 18.4

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
60.8
Promoters : 74.8 Promoters : 40.8
42.8 42.7
51.1
Institutions : 9.4 Institutions : 50

29.8 Non-institutional Non-institutional

and others : 15.9 and others : 9.2
24.1
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

74 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Hindustan Oil
Exploration Company Insecticides (India)
BSE CODE : 500186 BSE CODE : 532851
RANK RANK
10
: 10 : 10
9
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 1552.9 MARKET CAP(`/Cr.) : 1309.1
CMP (`) : 114.6 CMP (`) : 631.3
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

48.7 38.5 37.5 10.6 10.4 1106.4 134 84 19.7 16.6

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
173.4
Promoters : 0 Promoters : 68.8
49
Institutions : 10 Institutions : 16.3
92.9
Non-institutional Non-institutional
41.6
and others : 90 and others : 14.9
-12.2 39.2

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

HEG Greaves Cotton

BSE CODE : 509631 BSE CODE : 501455
RANK RANK
12
: 10 : 2
11
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 8363.2 MARKET CAP(`/Cr.) : 3151.5
CMP (`) : 2048.5 CMP (`) : 120.6
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

2952.6 1661.4 1081.3 86.5 75.6 1839.7 296 202.2 31.3 21.4

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
13.2 13.1
88 Promoters : 51.7
Promoters : 61
76.9
Institutions : 18.6 Institutions : 28.8

Non-institutional Non-institutional
and others : 20.4 and others : 19.5
14.9 -1.2
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 75

Cover Story Elite 100
Caplin Point
Sequent Scientific Laboratories
BSE CODE : 512529 BSE CODE : 524742
RANK RANK
14
: 2 : 2
13
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 1730.5 MARKET CAP(`/Cr.) : 2944.3
CMP (`) : 67.8 CMP (`) : 388.7
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

1270.1 477.4 430.8 40.7 54.2 539.8 189 144.6 64.1 49.4

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
136.7
Promoters : 57.4 53.7 Promoters : 69.1
51
Institutions : 13.5 Institutions : 7.1

Non-institutional Non-institutional
and others : 29.1 and others : 23.8
27.8
32.9
1 TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

JB Chemicals &
Thomas Cook (India) Pharmaceuticals
BSE CODE : 500413 BSE CODE : 506943
RANK RANK
15 16
FACE VALUE (`) : 1 FACE VALUE (`) : 2
MARKET CAP(`/Cr.) : 7942.4 MARKET CAP(`/Cr.) : 2673.1
CMP (`) : 206.8 CMP (`) : 323.3
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

11248.3 6223.1 6114.7 99.7 120.8 1414.3 197.4 138.7 13.7 9.9

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
22.6
207.1 Promoters : 67 20.6 Promoters : 56.1

160.1 Institutions : 20.2 Institutions : 21.3

Non-institutional Non-institutional
71.9 and others : 12.9 8.1 and others : 22.7

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

76 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 ISGEC Heavy
Engineering Care Ratings
BSE CODE : 533033 BSE CODE : 534804
RANK RANK
18
: 10 : 10
17
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 3455.4 MARKET CAP(`/Cr.) : 2833.3
CMP (`) : 4697.6 CMP (`) : 962.8
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

3825.9 285 168.4 18 12.8 332.7 233.1 162.3 41.7 29.3

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
9
Promoters : 62.3 Promoters : 0
6.6
44.4 Institutions : 9.1 5.8 Institutions : 67.5

37.2 Non-institutional Non-institutional

and others : 28.6 and others : 32.5

22 TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Symphony Persistent Systems

BSE CODE : 517385 BSE CODE : 533179
RANK RANK
19 20
FACE VALUE (`) : 2 FACE VALUE (`) : 10
MARKET CAP(`/Cr.) : 8925.1 MARKET CAP(`/Cr.) : 5312.8
CMP (`) : 1232.6 CMP (`) : 649.5
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

798.3 267 192.5 47.6 35.8 3033.7 429.3 323.1 21.3 16.2

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
18.3 16.1
Promoters : 75 Promoters : 30.5
16
Institutions : 15.2 Institutions : 43.1
10.6
Non-institutional Non-institutional
6.7
and others : 9.9 5.8 and others : 26.5

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 77

Cover Story Elite 100

Sharda Cropchem Just Dial

BSE CODE : 538666 BSE CODE : 535648
RANK RANK
22
: 10 : 10
21
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 3294 MARKET CAP(`/Cr.) : 3458.6
CMP (`) : 353.6 CMP (`) : 499.6
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

1713.4 302.4 190.8 26.7 18.2 781.8 193.9 143.2 20.6 15.9

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
14.1
Promoters : 74.8 Promoters : 33.8
21.3
Institutions : 21.6 Institutions : 49.4

16.7 Non-institutional Non-institutional

14.5 and others : 3.6 4.4 and others : 16.8
4.1

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Navin Fluorine
Shoppers Stop International
BSE CODE : 532638 BSE CODE : 532504
RANK RANK
23 24
FACE VALUE (`) : 5 FACE VALUE (`) : 2
MARKET CAP(`/Cr.) : 4230.1 MARKET CAP(`/Cr.) : 2968.9
CMP (`) : 481 CMP (`) : 585.8
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

4122.1 356.3 273.9 29.8 39.7 925.3 267.7 182.5 28.9 20.1

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
77.5 37.5
Promoters : 63.7 35.2 Promoters : 31

51.8 Institutions : 24.7 Institutions : 33.6

Non-institutional Non-institutional
and others : 11.7 and others : 35.4
15.5

0.8 TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

78 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Inox Leisure ICRA
BSE CODE : 532706 BSE CODE : 532835
RANK RANK
26
: 10 : 10
25
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 2904.2 MARKET CAP(`/Cr.) : 2871.4
CMP (`) : 277.6 CMP (`) : 2914.7
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

1348.1 127.1 114.7 13.9 17.8 308.9 156.9 101.2 26.1 16.9

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
78.9 12.3
Promoters : 51.9 Promoters : 51.9
10.1
Institutions : 33 Institutions : 37.9
49.6
Non-institutional Non-institutional
and others : 14.8 and others : 9.9
20.2 2.2
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Federal-Mogul Goetze
(India) Finolex Cables
BSE CODE : 505744 BSE CODE : 500144
RANK RANK
27 28
FACE VALUE (`) : 10 FACE VALUE (`) : 2
MARKET CAP(`/Cr.) : 2670.6 MARKET CAP(`/Cr.) : 6382.9
CMP (`) : 482.5 CMP (`) : 393.3
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

1359.8 162.1 96.2 22.8 14.6 2884.2 478.2 257.7 20.9 11.3

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
27.7
Promoters : 75 Promoters : 37.3
85.6
Institutions : 13.8 79.7 Institutions : 27
19

Non-institutional Non-institutional
and others : 11.2 and others : 35.7

45.5
1.7 TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 79

Cover Story Elite 100

Avanti Feeds NBCC (India)

BSE CODE : 512573 BSE CODE : 534309
RANK RANK
30
: 1 : 1
29
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 4712.1 MARKET CAP(`/Cr.) : 9909
CMP (`) : 331.5 CMP (`) : 52.8
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

3392.9 708.2 465.4 83.7 55.8 6941.6 644.2 371.6 35.2 20.3

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
Promoters : 43.8 Promoters : 70.6
59.4 60.7
Institutions : 34.1 14.7 Institutions : 15.5
14.3

Non-institutional Non-institutional
and others : 22.1 9.6 and others : 13.9
31.6
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Confidence Accelya Kale

Petroleum India Solutions
BSE CODE : 526829 BSE CODE : 532268
RANK RANK
31 32
FACE VALUE (`) : 1 FACE VALUE (`) : 10
MARKET CAP(`/Cr.) : 1121.4 MARKET CAP(`/Cr.) : 1380.5
CMP (`) : 39.9 CMP (`) : 914.5
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

615.1 50.9 26.6 16.8 12.8 381.4 138.8 89.2 77 49.5

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
94
Promoters : 51.6 4.8 Promoters : 74.7

Institutions : 6 Institutions : 6.9

Non-institutional Non-institutional
32.9 1.7
and others : 42.5 1.5 and others : 18.4
20.6

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

80 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Safari Industries Tata Investment
(India) Corporation
BSE CODE : 523025 BSE CODE : 501301
RANK RANK
34
: 2 : 10
33
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 1617.9 MARKET CAP(`/Cr.) : 4189.8
CMP (`) : 727.5 CMP (`) : 828.1
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

420.2 37 21.5 20 15.8 310.7 283.6 236.9 11 9.2

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
269.1
Promoters : 57.6 9.1 Promoters : 73

Institutions : 24.5 8.5 Institutions : 4.9

Non-institutional 7.8 Non-institutional

and others : 17.9 and others : 22.2
56.8
25.2
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Advanced Enzyme
NIIT Technologies Technologies
BSE CODE : 532541 BSE CODE : 540025
RANK RANK
35 36
FACE VALUE (`) : 10 FACE VALUE (`) : 2
MARKET CAP(`/Cr.) : 8188.8 MARKET CAP(`/Cr.) : 1682
CMP (`) : 1317.9 CMP (`) : 149.2
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

2991.4 413 308.7 23.5 18 395.7 147.4 93.6 25.8 18.3

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
45.3
Promoters : 30.6 Promoters : 67.3
37.2
6.7 6.7 Institutions : 56.1 Institutions : 11.7
6.4
Non-institutional Non-institutional
and others : 13.3 12.4 and others : 21

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 81

Cover Story Elite 100

Grindwell Norton VIP Industries

BSE CODE : 506076 BSE CODE : 507880
RANK RANK
38
: 5 : 2
37
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 6068 MARKET CAP(`/Cr.) : 5873.1
CMP (`) : 542.1 CMP (`) : 397
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

1453.8 229 150.9 24.3 16.1 1449.4 191.9 126.8 42.8 28.3

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
23.1
16.4 Promoters : 58.3 21.8 Promoters : 53.5
15.6
Institutions : 19.6 Institutions : 18.6

8.7 Non-institutional Non-institutional

and others : 22.1 10.1 and others : 27.9

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

TV Today Network Kajaria Ceramics

BSE CODE : 532515 BSE CODE : 500233
RANK RANK
39 40
FACE VALUE (`) : 5 FACE VALUE (`) : 1
MARKET CAP(`/Cr.) : 1959.9 MARKET CAP(`/Cr.) : 8828.9
CMP (`) : 322.4 CMP (`) : 538.1
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

720.9 187.1 118.9 29.3 19.1 2782.6 379.4 228.6 26.1 18.2

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
14.9
Promoters : 57.4 Promoters : 47.6
17.9
18
12.1
16.6 Institutions : 26.4 Institutions : 35.4

Non-institutional Non-institutional
8.3
and others : 16.2 and others : 17.1

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

82 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Triveni Turbine Hester Biosciences
BSE CODE : 533655 BSE CODE : 524669
RANK RANK
42
: 1 : 10
41
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 3360.8 MARKET CAP(`/Cr.) : 1132.5
CMP (`) : 101.3 CMP (`) : 1287.8
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

753.3 148.6 98.5 34.7 23 136.4 40.2 23.1 20.2 17.6

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
Promoters : 67.7 Promoters : 54.1
10.2 26
Institutions : 27.2 Institutions : 2.4
9.8

Non-institutional Non-institutional
9 19.3
and others : 5.1 and others : 43.5
17.9

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Balrampur Chini Mills Mishtann Foods

BSE CODE : 500038 BSE CODE : 539594
RANK RANK
43 44
FACE VALUE (`) : 1 FACE VALUE (`) : 1
MARKET CAP(`/Cr.) : 3072.5 MARKET CAP(`/Cr.) : 2237.5
CMP (`) : 127.2 CMP (`) : 44.8
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

4400.7 386.8 221.3 13 13.9 490.5 11.7 5.8 18.7 23.1

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
126.4 451.4
Promoters : 41 Promoters : 49.3
423.5
Institutions : 22.5 Institutions : 0

Non-institutional Non-institutional
and others : 36.5 and others : 50.7
30
12.4 218.1
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 83

Cover Story Elite 100

Kiri Industries Quess Corp

BSE CODE : 532967 BSE CODE : 539978
RANK RANK
46
: 10 : 10
45
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 1257 MARKET CAP(`/Cr.) : 10464.1
CMP (`) : 375.1 CMP (`) : 702.5
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

1135.2 148.5 126.7 10.6 11.2 6167.3 337.6 309.4 12.2 18.8

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
Promoters : 44.6 Promoters : 71.4
122.2 100.7
106.4 Institutions : 20.4 Institutions : 19.7

Non-institutional 72.6 Non-institutional

and others : 35 and others : 8.9
57.4
10.9
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

DCM Shriram Delta Corp

BSE CODE : 523367 BSE CODE : 532848
RANK RANK
47 48
FACE VALUE (`) : 2 FACE VALUE (`) : 1
MARKET CAP(`/Cr.) : 6403.8 MARKET CAP(`/Cr.) : 6746.4
CMP (`) : 367.2 CMP (`) : 233.2
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

7006.6 950.4 668.7 25.7 24 719.4 239.5 155.5 17 12

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
28.9
Promoters : 66.5 24.2 Promoters : 32.8
22.6
Institutions : 12.1 Institutions : 26.6

Non-institutional Non-institutional
12.2
and others : 21.4 and others : 40.6
6.5
2.1 TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

84 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Radico Khaitan Nocil
BSE CODE : 532497 BSE CODE : 500730
RANK RANK
50
: 2 : 10
49
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 5096.2 MARKET CAP(`/Cr.) : 2322.5
CMP (`) : 364.4 CMP (`) : 131.2
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

6270.4 255.9 123.5 14.2 11.2 989.3 255.9 169.9 25.9 17.4

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
63.4
65.8 Promoters : 40.4 Promoters : 33.8
48.6
Institutions : 28.7 Institutions : 11

Non-institutional Non-institutional
35.5
and others : 30.9 and others : 55.2
28.7
11.3
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Cyient Ajanta Pharma

BSE CODE : 532175 BSE CODE : 532331
RANK RANK
51 52
FACE VALUE (`) : 5 FACE VALUE (`) : 2
MARKET CAP(`/Cr.) : 7297.3 MARKET CAP(`/Cr.) : 8627.7
CMP (`) : 632.8 CMP (`) : 995.7
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

3917.5 577.1 418.7 22.7 18.4 2130.9 623 468.6 34.5 26

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
Promoters : 22.1 Promoters : 70.5
15.4 19
Institutions : 67 Institutions : 19.7
16.5
13.7
Non-institutional 15.1 Non-institutional
12.9
and others : 10.9 and others : 9.8

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 85

Cover Story Elite 100

Maithan Alloys DB Corp

BSE CODE : 590078 BSE CODE : 533151
RANK RANK
54
: 10 : 10
53
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 1436.4 MARKET CAP(`/Cr.) : 3131.7
CMP (`) : 475.3 CMP (`) : 178.9
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

1891 383.8 291.8 48.6 40.2 2328.5 495.2 324 27.1 18.5

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
125.4
Promoters : 75 5.8 Promoters : 71.6

84.1 Institutions : 3 Institutions : 20.6

Non-institutional Non-institutional
1.9
and others : 22 and others : 7.8
1.4
17
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Bajaj Consumer Care Infibeam Avenues

BSE CODE : 533229 BSE CODE : 539807
RANK RANK
55 56
FACE VALUE (`) : 1 FACE VALUE (`) : 1
MARKET CAP(`/Cr.) : 5182.4 MARKET CAP(`/Cr.) : 2401.5
CMP (`) : 349.3 CMP (`) : 36.3
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

828.5 271 211.1 53.4 42.8 839.3 121.6 88.8 6.7 5.3

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
Promoters : 66.9 251 Promoters : 38.2
9.1 218
8.8 Institutions : 29 Institutions : 4.8

Non-institutional Non-institutional
5.4 and others : 4.1 and others : 57
41.8
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

86 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Sheela Foam FDC
BSE CODE : 540203 BSE CODE : 531599
RANK RANK
58
: 5 : 1
57
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 6679.1 MARKET CAP(`/Cr.) : 2872.4
CMP (`) : 1353.1 CMP (`) : 161
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

2004.4 202.2 133.7 34.6 25.2 1083.1 242.5 174 19 13.7

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
48 6.5
5.9
Promoters : 85.7 Promoters : 69.1
38.3
Institutions : 11.7 Institutions : 14.1

Non-institutional Non-institutional
2.3
and others : 2.6 and others : 16.9
9.5
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Seshasayee Paper & Carborundum

Boards Universal
BSE CODE : 502450 BSE CODE : 513375
RANK RANK
59 60
FACE VALUE (`) : 10 FACE VALUE (`) : 1
MARKET CAP(`/Cr.) : 1169.9 MARKET CAP(`/Cr.) : 7229.9
CMP (`) : 871 CMP (`) : 360.2
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

1118.2 189 122.4 22.9 18.4 2395.2 315.6 204.9 19.6 14

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
56.3
Promoters : 42.7 21.2 Promoters : 42.4

Institutions : 19.4 14.7 Institutions : 28.9

32.7
Non-institutional Non-institutional
and others : 38 and others : 28.8

6.1 1.7
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 87

Cover Story Elite 100

CCL Products (India) Bliss GVS Pharma

BSE CODE : 519600 BSE CODE : 506197
RANK RANK
62
: 2 : 1
61
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 3718.1 MARKET CAP(`/Cr.) : 1840.7
CMP (`) : 276.1 CMP (`) : 175.3
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

1138 209.7 148.1 23 21.7 815.1 168.1 88.7 24.6 17.3

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
23.1
Promoters : 45.3 Promoters : 50.5
23.8
15.8 Institutions : 29.8 Institutions : 18.5
21.2
12.1
Non-institutional Non-institutional
17.4
and others : 25 and others : 31.1

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Mahindra CIE
Ashiana Housing Automotive
BSE CODE : 523716 BSE CODE : 532756
RANK RANK
63 64
FACE VALUE (`) : 2 FACE VALUE (`) : 10
MARKET CAP(`/Cr.) : 1166.3 MARKET CAP(`/Cr.) : 8912.8
CMP (`) : 112 CMP (`) : 232.4
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

321.3 62.6 38.2 7.3 5.1 6663 561.2 358.4 11.7 10.3

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
30.5
Promoters : 61 Promoters : 67.7
198.8
22.6 Institutions : 8.8 Institutions : 17

15 Non-institutional 116.1 Non-institutional

and others : 30.2 and others : 15.3
26.1
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

88 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Garware Technical BLS International
Fibres Services
BSE CODE : 509557 BSE CODE : 540073
RANK RANK
66
: 10 : 1
65
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 2297.7 MARKET CAP(`/Cr.) : 1060.4
CMP (`) : 1047.7 CMP (`) : 98.6
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

885.5 163.1 105.2 27 21.4 789.1 124.2 96.5 39.5 45.3

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
55.1
40.8 Promoters : 50.7 Promoters : 74.2
47.4
33 Institutions : 8.5 Institutions : 2.9

Non-institutional Non-institutional
and others : 40.8 and others : 22.8
6.5 19.6
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Quick Heal Westlife

Technologies Development
BSE CODE : 539678 BSE CODE : 505533
RANK RANK
67 68
FACE VALUE (`) : 10 FACE VALUE (`) : 2
MARKET CAP(`/Cr.) : 1541.6 MARKET CAP(`/Cr.) : 5510.6
CMP (`) : 202.1 CMP (`) : 345.8
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

318.3 123.4 83 17.8 12 1134.9 27.9 12.9 3.9 2.4

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
9.4 91.7
9.2 Promoters : 72.3 Promoters : 62.2

Institutions : 2.9 Institutions : 21.8

51.5
7 Non-institutional Non-institutional
and others : 24.8 and others : 16
11.3
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 89

Cover Story Elite 100
Multi Commodity
Exchange Of India Grauer & Weil (India)
BSE CODE : 534091 BSE CODE : 505710
RANK RANK
70
: 10 : 1
69
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 3453.6 MARKET CAP(`/Cr.) : 1124.5
CMP (`) : 663.7 CMP (`) : 45
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

259.8 147.2 108.4 10.7 7.9 557.6 93.2 63.8 27.4 19.5

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
Promoters : 0 20.4 Promoters : 69

Institutions : 69.1 15.7 Institutions : 0

Non-institutional Non-institutional
and others : 30.7 and others : 31
-6.5 4.8

-8.6 -8.3 TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Swan Energy Vakrangee

BSE CODE : 503310 BSE CODE : 511431
RANK RANK
71
: 1
72
FACE VALUE (`) : 1 FACE VALUE (`)
MARKET CAP(`/Cr.) : 2785.8 MARKET CAP(`/Cr.) : 4568.7
CMP (`) : 126.2 CMP (`) : 42.8
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

346.7 131.2 54.7 8.5 8 6502 1034.2 680.5 43.2 29.5

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
162.7 Promoters : 64.9 Promoters : 41.7
40.4
Institutions : 12.6 Institutions : 20.1
35.1
Non-institutional Non-institutional
and others : 22.5 30.2 and others : 38.2
33.9

1 TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

90 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Sonata Software Borosil Glass Works
BSE CODE : 532221 BSE CODE : 502219
RANK RANK
73 74
FACE VALUE (`) : 1 FACE VALUE (`) : 1
MARKET CAP(`/Cr.) : 3575.9 MARKET CAP(`/Cr.) : 1970.9
CMP (`) : 337 CMP (`) : 212.8
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

2453.9 265.2 192.1 39.8 30.9 635.8 81.3 47.7 9.6 6

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
Promoters : 28.2 42.1
24.7 25.4 Promoters : 72.9

Institutions : 23.1 Institutions : 2.6

Non-institutional Non-institutional
18
11.9 and others : 48.8 and others : 24.6
6.6
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Graphite India eClerx Services

BSE CODE : 509488 BSE CODE : 532927
RANK RANK
75 76
FACE VALUE (`) : 2 FACE VALUE (`) : 10
MARKET CAP(`/Cr.) : 8282.9 MARKET CAP(`/Cr.) : 4076.2
CMP (`) : 412.2 CMP (`) : 1005.1
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

3291.2 1481.1 1032 57.8 45 1365.1 380.7 289.9 31.4 24.3

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
12.9
67.9 Promoters : 65.2 Promoters : 50.6
58.2
Institutions : 16.7 Institutions : 41.2

Non-institutional Non-institutional
and others : 18.1 and others : 8.3
3.4 3.2
12.1
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 91

Cover Story Elite 100
Maharashtra
Aegis Logistics Seamless
BSE CODE : 500003 BSE CODE : 500265
RANK RANK
78
: 1 : 5
77
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 6890.4 MARKET CAP(`/Cr.) : 3143.6
CMP (`) : 196.2 CMP (`) : 470.6
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

4791 240 213.8 18.2 20.9 2180.9 299.8 166.2 10.2 7.3

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
32.8 26.6
Promoters : 60.6 Promoters : 61.8
25
Institutions : 14.6 Institutions : 10.8
13.6 14.5
Non-institutional Non-institutional
and others : 24.9 and others : 27.5
-1.2
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Techno Electric &

Engineering Company KNR Construction
BSE CODE : 542141 BSE CODE : 532942
RANK RANK
79 80
FACE VALUE (`) : 2 FACE VALUE (`) : 2
MARKET CAP(`/Cr.) : 2636.2 MARKET CAP(`/Cr.) : 2839.8
CMP (`) : 244.6 CMP (`) : 201.4
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

1294.4 289.9 200.3 26 21.2 2069.6 310.7 228.9 18.5 24.6

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
22.6
Promoters : 58.8 36.7 Promoters : 55.4
36.1

19.3 Institutions : 24.1 Institutions : 31.7

Non-institutional Non-institutional
16.3
and others : 17.2 and others : 12.9
23.3
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

92 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Ahluwalia Contracts
Zydus Wellness (India)
BSE CODE : 531335 BSE CODE : 532811
RANK RANK
82
: 10 : 2
81
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 7175.7 MARKET CAP(`/Cr.) : 1994.9
CMP (`) : 1260.2 CMP (`) : 282
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

503.2 151.4 136.5 23.3 21.9 1646.6 199.9 115.4 32.1 20.5

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
51.8
9.9 Promoters : 72.5 Promoters : 58
8.6
Institutions : 13.3 34.9 Institutions : 37.5

Non-institutional Non-institutional
4
and others : 14.2 14.4 and others : 4.6

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Lakshmi Machine
Dhampur Sugar Mills Works
BSE CODE : 500119 BSE CODE : 500252
RANK RANK
83 84
FACE VALUE (`) : 10 FACE VALUE (`) : 10
MARKET CAP(`/Cr.) : 1611.9 MARKET CAP(`/Cr.) : 6283
CMP (`) : 230.3 CMP (`) : 5707.7
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

3395.8 327.7 151.3 12.4 15.9 2643 303.1 214.6 18.3 13

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
141.8 3.2
Promoters : 49.1 2.9 Promoters : 30.8

Institutions : 2.7 Institutions : 20.5

Non-institutional Non-institutional
54 1.2
and others : 48.2 and others : 48.7

15.7
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 93

Cover Story Elite 100

Sunteck Realty Excel Industries

BSE CODE : 512179 BSE CODE : 500650
RANK RANK
86
: 1 : 5
85
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 5085.9 MARKET CAP(`/Cr.) : 1455.7
CMP (`) : 332.8 CMP (`) : 1039.7
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

888.3 434.8 229.7 14.6 10.4 611.1 113.9 73.9 22.3 15.7

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
10.7
Promoters : 67 42.4 Promoters : 52.4
35.9
Institutions : 27.7 Institutions : 8.5
5.9
Non-institutional Non-institutional
and others : 5.4 and others : 39.1
-1 7.6
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Jamna Auto
Force Motors Industries
BSE CODE : 500033 BSE CODE : 520051
RANK RANK
87 88
FACE VALUE (`) : 10 FACE VALUE (`) : 1
MARKET CAP(`/Cr.) : 2107.7 MARKET CAP(`/Cr.) : 2339
CMP (`) : 1376.1 CMP (`) : 52.4
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

3531.4 207.3 147.2 11.3 8.5 1757.3 206.5 125.3 46.3 33.1

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
30.2 73.5
Promoters : 61.9 Promoters : 47.9

Institutions : 7.9 50 Institutions : 12.8

17.2
Non-institutional Non-institutional
11.3 and others : 30.3 and others : 39.3
18.4

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

94 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Agro Tech Foods Polyplex Corporation
BSE CODE : 500215 BSE CODE : 524051
RANK RANK
90
: 10 : 10
89
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 1380.5 MARKET CAP(`/Cr.) : 1534.5
CMP (`) : 566.1 CMP (`) : 471.4
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

811.7 49.1 31.6 14.8 10.3 3588 353.3 284.1 10.8 11.7

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
54
Promoters : 51.8 Promoters : 50
1.5 Institutions : 11.5 Institutions : 7.1
36.6

Non-institutional Non-institutional
and others : 36.7 and others : 42.9
-4.6

TOTAL : 100 2.7 TOTAL : 100

-7.2
As on 31-Dec-18 As on 31-Dec-18

Praj Industries Sasken Technologies

BSE CODE : 522205 BSE CODE : 532663
RANK RANK
91 92
FACE VALUE (`) : 2 FACE VALUE (`) : 10
MARKET CAP(`/Cr.) : 2674 MARKET CAP(`/Cr.) : 1066.4
CMP (`) : 139.4 CMP (`) : 609.4
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

970.5 54.2 39.5 7.5 5.5 503 99.7 82.4 16.9 13.9

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
0.2 12.5
Promoters : 33.1 Promoters : 42.4

Institutions : 32.9 Institutions : 18.9

8.3
Non-institutional Non-institutional
and others : 34 and others : 38.7
2.4

-8.8 -8.6 TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 95

Cover Story Elite 100
Gujarat Narmada
Valley Fertilizers & Bombay Burmah
Chemicals Trading Corporation
BSE CODE : 500670 BSE CODE : 501425
RANK RANK
94
: 10 : 2
93
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 4259.3 MARKET CAP(`/Cr.) : 8489.5
CMP (`) : 256.2 CMP (`) : 1192.7
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

5916.6 1261.6 789.5 23.7 18.9 10315.8 1485.8 891.7 30.7 23.4

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
Promoters : 41.2 24.3 Promoters : 65.9
24.7 22
Institutions : 26.3 Institutions : 6.7
23.7
Non-institutional Non-institutional
22.4 and others : 32.5 8.7 and others : 27.4

TOTAL : 100 TOTAL : 100

As on 31-Dec-18 As on 31-Dec-18

Eveready Industries
(India) Deepak Nitrite
BSE CODE : 531508 BSE CODE : 506401
RANK RANK
95 96
FACE VALUE (`) : 5 FACE VALUE (`) : 2
MARKET CAP(`/Cr.) : 1427.2 MARKET CAP(`/Cr.) : 3184.8
CMP (`) : 197.6 CMP (`) : 226.6
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

1475.3 104.9 53.2 18.9 16.8 1676.2 158.3 79 9.5 9.7

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
Promoters : 44.4 67.5 Promoters : 44.6
40.6
Institutions : 33.9 Institutions : 25.3

Non-institutional Non-institutional
16.2 and others : 21.8 55.9 and others : 30.1
54.6
5
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

96 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 Tata Sponge Iron KRBL
BSE CODE : 513010 BSE CODE : 530813
RANK RANK
98
: 10 : 1
97
FACE VALUE (`) FACE VALUE (`)
MARKET CAP(`/Cr.) : 1103 MARKET CAP(`/Cr.) : 8624.7
CMP (`) : 714.1 CMP (`) : 343.1
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

816.6 213.5 140.9 23.1 15.2 3246.5 724.3 434.4 22.2 20.7

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
8.6 15.8
Promoters : 54.5 Promoters : 58.8
14.2
7
Institutions : 7.2 Institutions : 10.3

Non-institutional Non-institutional
and others : 38.3 and others : 30.9
-1.2 2.8
TOTAL : 100 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Poly Medicure NCC

BSE CODE : 531768 BSE CODE : 500294
RANK RANK
99 100
FACE VALUE (`) : 5 FACE VALUE (`) : 2
MARKET CAP(`/Cr.) : 1843.9 MARKET CAP(`/Cr.) : 5357.8
CMP (`) : 209 CMP (`) : 83.9
Financial Snapshot Financial Snapshot
Sales Operating Net profit ROCE ROE Sales Operating Net profit ROCE ROE
(` Cr) profit (` Cr) (` Cr) (%) (%) (` Cr) profit (` Cr) (` Cr) (%) (%)

521.7 107.1 69.4 25.4 22.7 8390.6 685.2 145.4 11.3 3.9

5 Year CAGR (%) Shareholding Pattern 5 Year CAGR (%) Shareholding Pattern
93.6
Promoters : 48.8 Promoters : 18.1

Institutions : 4.9 Institutions : 47.7

12.4
12 Non-institutional Non-institutional
and others : 46.3 and others : 34.2
10.2
TOTAL : 100 3 2.2 TOTAL : 100
As on 31-Dec-18 As on 31-Dec-18

Data Souce : ACE Equity Market Cap and CMP as on February 27, 2019.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 97

QueryBoard
Investment Horizon
Query-Specific

LT FOODS NAVKAR CORP

I have 300 Navkar Corp shares bought at `65.
I hold 300 shares of LT Foods bought at `70. Should Should I hold or exit?
I continue to hold or exit? - Sagar
- Vijaya S.

HOLD HOLD
BSE/NSE Code 532783 / DAAWAT BSE Code 539332 / NAVKARCORP
Face Value `1 Face Value `10
CMP `37.25 CMP `46.45
52-Week High `99.75 / Low `31.50 52-Week High `185.00 / Low `37.05
Your Current (46.78 per cent) Your Current (21.83 per cent)
Profit/(Loss) Profit/(Loss)

L N
T Foods is a specialty food company engaged in milling,
processing and marketing of branded Basmati rice and
manufacturing of rice food products. The company
operations include contract farming, storage, procurement,
processing, packaging and distribution. The company has a large
rice product portfolio including brown rice, white rice, steamed
rice, pot boiled rice, among others. The company owns some
famous brands, namely, Daawat, Gold Seal Indus Valley, Rozana
and 817 Elephant. LT Foods reported consolidated sales of
`1113.93 crore in Q3FY19, up by 20.06 per cent as against
`927.78 crore in the corresponding quarter last year. The net
profit for the company came in at `38.47 crore, up 2.39 per cent
as against `37.57 crore in the corresponding quarter last year. The
company’s PBT stood at `65.82 crore, up 16 per cent as against
`56.74 crore in the corresponding quarter last year. On the
annual front, the company reported sales of `3613.70 crore in
FY18 on a consolidated basis, up by 11.36 per cent as against
`3244.78 crore in FY17. The net profit for the company came in at
`136.42 crore in FY18 as against `117.52 crore in FY17, register-
ing a growth of 16.08 per cent. The PBT for the company stood at
`216.24 crore in FY18 as against `194.46 crore in FY17, register-
ing a growth of 11.2 per cent. We recommend a HOLD as the
company’s financials in the latest quarter showed recovery.
avkar Corporation is engaged in the business of container
freight station (CFS). The company enjoys a major
presence in the logistics space in western India. The
company’s principal product and service include cargo handling,
cargo storage, maintenance and repairs of containers. The
company has 3 CFSs with an aggregate installed capacity of
310,000 twenty-foot equivalent units (TEUs) per annum. The
company provides cold storage facilities at its CFS and custom
clearance services, handling and temporary storage of import/
export laden and empty containers. The company reported net
sales of `123.37 crore in Q3FY19, up by 42.69 per cent, as against
`86.46 crore in the corresponding quarter last year. The company
reported a net profit of `9.19 crore in Q3FY19, down 63.26 per
cent as against `25.02 crore in the corresponding quarter last year.
The PBT for the company came in at `15.68 crore in Q3FY19 as
against `31.54 crore in the corresponding quarter last year. On the
annual front, the company’s net sales came in at `428.27 crore for
FY18 as against `370.91 crore in FY17, registering a growth of
15.43 per cent. The net profit for the company jumped 13.66 per
cent to `100.92 crore as against `88.79 crore in FY17. We believe
that the company would witness improvement its performance in
the coming quarter which in turn would improve investors’
sentiments. Thus we recommend a HOLD.

Readers are requested to send only one query at a time so that more readers get a chance. For complaints regarding non-receipt of
dividend, bonus, rights and other matters, investors may write to www.investor.sebi.gov.in

Company Name: DEMOCRATIZING WEALTH CREATION

Vol. No. 34 No.08

Query:
Send in your queries:
DSIJ Pvt. Ltd.
C-101, 1st Floor, Trade Center,
Name: North Main Road, Near Axis Bank,
Opp. Lane No. 6, Koregaon Park,
Address:
Pune - 411001
E-mail: Email:editorial@DSIJ.in

98 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 ICICI SECURITIES
I have bought 225 shares of ICICI Securities at
`520 each in the IPO. Should I hold or sell?
Can I hold for one to two years?
- Ayush Mathur
HOLD
BSE/NSE Code 541179 / ISEC
Face Value `5
CMP `230.50
52-Week High `462.70 / Low `188.00
Your Current (55.67 per cent)
Profit/(Loss)
I T
CICI Securities Limited offers a range of financial services
including brokerage, financial product distribution and
investment banking and focuses on both retail and
institutional clients. The company’s segments include broking and
commission, which consists of equity, currency and derivative
brokerage services, distribution of third-party products, research,
and fees from financial planning. Another segment is the
advisory services, which consist of equity capital markets
services and financial advisory services that cater to corporate
clients, the government and financial sponsors. The investment
and trading segment consists of treasury and proprietary trading
activities.
On the financial front on a consolidated basis, the net sales stood
at `404.75, posting a drop of 18.04 per cent in Q3FY19 as against
`493.85 crore in the same quarter of the previous year. The profit
before interest depreciation and tax (PBIDT) came in at `170.43
crore in the quarter ending December 2018, showing a fall of 32.19
per cent from `251.34 crore in the same period of the previous
year. The profit after tax (PAT) for Q3FY19 was reported at
`101.17 crore, reflecting a drop of 34 per cent from `153.94 crore
in the corresponding period of the previous fiscal.
On the annual front, the company posted net sales of `1,859.33
crore in FY18, an increase of 32 per cent from `1,404.23 crore in
FY17. The PBIDT was reported at `919.66 crore, reflecting an
expansion of 62 per cent in FY18 from `566.46 crore reported in
FY17. The PAT stood at `557.73 crore in FY18, showing a rise of
65 per cent as compared to `338.59 crore in FY17.
On the valuation front, the company is trading at a P/E of 14.06 as
against the industry PE of 23.42x. The return on capital employed
(RoCE) for the company stood at 75.63 per cent and the return on
equity (ROE) stood at 84.26 per cent.
Looking at the above mentioned reasons, we would recommend
our reader-investors to HOLD and can exit at the level of `270.
DSIJ.in
TATA MOTORS
I have some shares of Tata Motors, but the stock
price is showing a downward trend and has declined
by 50 per cent. Please advice what to do at this
level. - Anil Kumar Jain
HOLD
BSE/NSE Code 500570 / TATAMOTORS
Face Value `2
CMP `189.20
52-Week High `372.40 / Low `141.90
Your Current --
Profit/(Loss)
ata Motors is an automobile company engaged mostly in
the business of automobile products consisting of all
types of commercial as well as passenger vehicles,
including financing of the vehicles sold by the company. The
company’s segments include automotive operations and all
other operations. The company’s automotive segments include
activities pertaining to the development, design, manufacture,
assembly and sale of vehicles, including vehicle financing, as
well as sale of related parts and accessories. In the automotive
segment, the company manufactures and sells passenger cars,
utility vehicles, light commercial vehicles, and medium and
heavy commercial vehicles.
On the financial front, on a consolidated basis, the net sales stood
at `76,264.69 crore in Q3FY19 as compared to `72,083.91 crore
in the same quarter of the previous year, witnessing a growth of
5.80 per cent. The PBIDT of the company in the third quarter of
FY19 came in at `6,040.64 crore as against `7,753.38 crore,
portraying a 22 per cent drop YoY. Also, the company posted a
net loss of `26,823.22 crore for the latest quarter ending
December 2018 as against a net profit of `961.42 crore in the
corresponding quarter of the previous year.
On the annual front, the company posted net sales of
`2,94,619.18 crore in FY18 as against `2,69,692.51 crore in
FY17, a rise of 9 per cent. The PBIDT came in at `35,415.27
crore as against `30,343.23 crore in FY17, thereby expanding by
17 per cent. The PAT in FY18 was reported at `6,813.10, an
increase of 12 per cent from `6,063.56 crore in FY17. On the
valuation front, the company is trading at a P/E of 56.75x as
against the industry PE of 15.68x. The return on capital
employed (RoCE) for the company stood at 9.87 per cent and
the return on equity (ROE) stood at 8.88 per cent.
We recommend a HOLD only if the investor-reader has a
holding capacity for a longer period of approximately 2-3 years,
as partial recovery is possible although full recovery is unlikely.
MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 99
QueryBoard
CADILA HEALTHCARE
I have some shares of Cadila which have fallen by
over 20 per cent. What should I do?
- Gayatri
HOLD
BSE/NSE Code 532321 / CADILAHC
Face Value `1
CMP `327.10
52-Week High `432.40 / Low `306.35
Your Current --
Profit/(Loss)
C A
adila Healthcare operates in areas of active
pharmaceutical ingredients (API) to formulations and
animal health products to cosmeceuticals. The company
has in-licensing alliances with global multinationals such as
Schering AG, Boehringer Ingelheim, Viatris, etc. Its product
range includes formulations that cater to various therapeutic
areas such as cardiovascular, gastrointestinal, respiratory, pain
management, CNS, anti-infectives, oncology, neurosciences,
dermatology and nephrology segments and consumer product
division-brands like Sugar Free, Nutralite and Everyuth.
On the consolidated financial front, the net sales have gone up
by 10.58 per cent to `3,516 crore in the quarter ending
December 2018 from `3,179 crore reported in the same quarter
of the previous fiscal. The profit before interest depreciation and
tax (PBIDT) came in at `839 crore in Q3FY19 as against
`858.6 crore in Q3FY18, displaying a fall of 2 per cent. In terms
of profit after tax (PAT), the company witnessed a drop of
almost 6 per cent as it stood at `513 crore in Q3FY19 as against
`545.4 crore in Q3FY18. The PAT margin has fallen to 14.34 per
cent in Q3FY19 from 16.73 per cent in Q3FY18.
On the annual front, the net sales shot up 27 per cent to
`11,904 crore in FY18 as against `9,376.5 crore in FY18. In
FY18, the PBIDT has gone up 45 per cent to `2,961.60 crore as
against `2,048.66 crore in FY17. The PAT jumped 18 per cent to
`1,747.60 crore in FY18 as compared to `1,483 crore reported
in FY 17. On the valuation front, the company is currently
trading at a PE multiple of 17.07x while the industry PE stood
at 22.10x. The ROCE stood at 18.41 per cent and the ROE was
at 22.26 per cent.
The company has a good return on equity (ROE) track record
in three years at 27.16 per cent. It also has a healthy dividend
payout of 19.72 per cent. After reviewing the company we
would recommend a HOLD keeping in mind the growth
trajectory of the company’s financials.
100 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019
Investment Horizon
Query-Specific
AMARARAJA BATTERIES
I bought 50 shares of Amararaja Batteries at `724.
Please advise whether I should hold or sell.
- Ramaswamy
EXIT
BSE/NSE Code 500008 / AMARAJABAT
Face Value `1
CMP `744.05
52-Week High `907.75 / Low `670.65
Your Current 2.76 per cent
Profit/(Loss)
mara Raja Batteries Limited is engaged in the
manufacture of lead acid storage batteries for industrial
and automotive purposes in India. The company’s
products are supplied to various user segments, such as telecom,
railways, power control, solar and uninterruptible power supply
(UPS) under industrial battery business and to automobile
original equipment manufacturers (OEMs), replacement
market and private label customers under automotive battery
business. The company also provides installation,
commissioning and maintenance services. The company’s
automotive and industrial battery brands include Amaron,
PowerZone, etc.
On the financial front, on a consolidated basis, the company
reported net sales of `1,694.66 crore in Q3FY19, an increase of
9.09 per cent from `1553.46 crore in the same quarter of the
previous year. The profit before interest depreciation and tax
(PBIDT) stood at `252.77 crore in the third quarter of fiscal year
2019 as against `134.45 crore reported in the same quarter of the
previous year, reflectiong a 4.63 per cent growth. The profit after
tax (PAT) in Q3FY19 stood at `130.89 crore as compared to
`134.45 crore in the corresponding quarter of the previous year
showing a marginal fall of 2 per cent. The PAT margin stood at
7.72 per cent in Q3FY19 as against 8.65 per cent in Q3FY18.
On the annual front, the net sales expanded by 14 per cent at
`6,059.15 crore in FY18 versus `5,317.15 crore in FY17. The
PBIDT stood at `949.60 in FY18, a growth of 6 per cent as
compared to `899.15 crore in FY17. The PAT however
marginally fell by 1 per cent to `471.32 crore in FY18 as against
`478.49 crore in FY17.
Currently, the 4-wheeler and 2-wheeler segments are
experiencing lacklustre demand due to rising cost of insurance
and increasing cost of new safety measures. Therefore, it would
be a good call to EXIT and book the profits now.
(Closing price as of Mar 07, 2019)
DSIJ.in
Trackpad
Mahindra CIE Announces Acquisition

T
he board of directors of Mahindra CIE Automotive has approved the acquisition
of 100 per cent of the issued and outstanding share capital of Aurangabad
Electricals and authorized the signing of a share purchase agreement. The
acquired firm’s revenues and PAT for FY18 were `651 crore and `34.4 crore,
respectively, while its long-term borrowings was at `88 crore.

Aurangabad Electricals caters to automotive aluminium die-cast components industry

and is a crucial supplier to a number of domestic and global two-wheeler and passenger
car OEMs and Tier-1 auto component companies.

For this acquisition, the company would pay `830 crore in cash. The said acquisition is
expected to be completed before April 10, 2019. The company’s management believes
that this acquisition would lead to the company’s entry into the automotive aluminium
die-casting segment and increase strength in the two-wheeler segment.
NBCC Secures Four Orders
From Raipur SMART City
S
Adani Enterprises Subsidiary Secures Two Road Projects tate-owned infrastructure

A
company, NBCC (India) secured
dani Transport, a wholly-owned subsidiary of Adani Enterprises, has received four orders from Raipur SMART
Letter of Awards for 2 hybrid annuity road projects (HAM) from National City Limited (RSCL). The company will
Highways Authority of India (NHAI) in the state of Telangana. charge project management consultancy
fees at the rate of 8 per cent on the actual
These projects include four laning of NH-363 from Mancherial to Repallewada under cost of work as per the terms of the
NHDP Phase-IV on HAM and also four laning of Suryapet to Khammam of NH365BB agreement.
under Bharatmala Pariyojana on HAM in the state of Telangana. These projects are
worth `1,356.9 crore and `1,566.3 crore, respectively. Three of the four orders are for the
commercial redevelopment of Ganj
Adani Enterprises consolidated net profit declined by 72 per cent to `80.09 crore in the Mandi, Shastri Mandi and Naveen
quarter ended December 2018 as against `286.97 crore YoY. This decline in profitability markets in Raipur. These projects have a
was on account of higher expenses. The company’s total income stood at `10,548.14 total estimated cost of `700 crore. The
crore in the quarter ended December 2018 as against `9,241.61 YoY, registering a other order is for the development of
growth of 11.43 per cent. Adani Enterprises has forayed into new sectors like two vacant lands in Raipur.
petrochemicals and technology earlier this year.
The company has a presence across
three main segments namely, Project
Management Consultancy (PMC), Real
PSP Projects Bags Orders Worth `601.21 Crore Estate Development and EPC
Contracting. The PMC segment

P
SP Projects has received work orders worth `601.21 from multiple clients. contributes 88 per cent to the company’s
The company will carry out the order for industrial, institutional, government revenues and has an order book of
and residential projects from various clients. A major chunk of order is received almost `85,000 crore. The company has
from Indian Institute of Management, Ahmedabad for Construction and won projects worth `8,311.68 crore for
Implementation Work of its Faculty Houses, Student Dormitories and Staff Houses the April-December 2018 period. The
New Academic Block, JSW School of Public Policy and Sports Complex for a contract company also made an entry into
value of `328 crore. The remaining orders have come in from other major clients like large-scale residential projects with the
Cadila Healthcare, MRF, Gujarat Cancer Society, Torrent Pharmaceuticals, CEPT Supreme Court handing over
University etc. incomplete projects of the private
builder, Amrapali Group to the
PSP Projects is an Ahmedabad-based multi-disciplinary construction firm which company.
provides its services ranging from planning and design for construction as well as
post-construction activities.

102 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

Standard Life To Liquidate 4.93 Per Cent Stake In HDFC Life

S
tandard Life will sell 4.93 per cent stake in HDFC Life Insurance for `3,570 crore
in order to comply with the public shareholding norm. Standard Life is the joint
venture partner in HDFC Life Insurance. Standard life holds 29.2 per cent whereas
HDFC holds 51.5 per cent.

Standard Life sold 7 crore shares which is 3.47 per cent of the total equity of HDFC Life
Insurance company on March 12 through an offer for sale. There is an option to offload
an additional 2.95 crore shares or 1.46 per cent of equity in case of oversubscription.
The floor price of `357.5 per share is at an 8.2 per cent discount to Monday’s closing
price of `389.8 per share.

As per SEBI’s minimum public shareholding norms, promoters of HDFC Life Insurance
Company need to reduce 5.71 per cent stake before November 2020. At present, the
combined shareholding of the joint venture partners stands at 80.71 per cent. Standard
Life’s stake in HDFC Life will drop to 24.27 per cent.
Future Retail To Focus On
Capacite Infra Secures Orders Worth `486 Crore Big Bazaar Expansion

C F
uture Retail plans to spend around
apacit’e Infraprojects has received an order from Municipal Corporation of `150-200 crore per year to expand
Greater Mumbai to redevelop Harilal Bhagwati Municipal General Hospital at Big Bazaar outlets in the Eastern
Borivali. The said order amounts to `486.81 crore. region. The region contributes nearly 25
per cent to the company’s total revenue,
Capacite’s order book (excluding MHADA) as on December 31, 2018, stood at `7,519 said a media report quoting top official.
crore. This strong order book gives revenue visibility for the next 4-5 years. The
residential segment contributes nearly 77 per cent to the order book, while the As on December 31, 2018, the
commercial & institutional segment contributes around 23 per cent. company’s Big Bazaar store count stood
at 286 across 144 cities covering 12.5mn
During the recent quarter Q3FY19, the company’s revenue grew by 22 per cent on YoY sq.ft. During the recent quarter, the
basis, whereas net profit increased marginally by 5.3 per cent on YoY basis. company has added 2 new stores of the
same with area addition of 0.14mn sq.ft.
Capacit’e Infraprojects Limited is a leading building construction company with
presence in MMR, NCR, Bengaluru, Hyderabad, Chennai, Kochi and Pune, with Big Bazaar operates large formats stores
specialisation in the construction of super high rise buildings. which contributed around 85 per cent
to the company’s total revenue with SSG
(Same Sales Growth) at 10.1 per cent in
DLF Plans To Reduce Debt Via QIP Of `3,000 Crore Q3FY19 vs 13.1 per cent in Q3FY18.
The revenue increased by 13 per cent on

D
LF plans to raise `3,000 crore by June by selling equity shares to qualified YoY basis, whereas PAT increased by 10
institutional investors (QIP). DLF is aiming to become a debt-free company. per cent YoY.
The company had announced plans to issue up to 17.3 crore shares via QIP to
raise funds and pre-pay debt. The proceeds from the QIP combined with an additional Future retail promoted by Kishor Biyani
infusion of `2,500 crore from promoters against the issue of warrants would aid in the operates in the various division through
reduction of debt which stood at `7,200 crore in December 2018. The company also its brands like Big Bazaar, a
intends to sell ready to move housing inventories worth `12,500 crore in the next 3-5 hypermarket format; Food Bazaar, a
years. DLF promoters K P Singh and family will pump in `2,250 crore into the company supermarket; fbb, a fashion destination;
in addition to the `9,000 crore already infused by them. The company made a Foodhall, a supermarket, and Easyday
preferential allotment of compulsorily convertible debentures (CCDs) and warrants convenient stores. In terms of home
against the infusion of funds. This infusion, however, would cause the promoter business, the company functions Home
shareholding to exceed the permissible limit of 75 per cent. The QIP will also allow the Town, a one-stop destination for home
company to maintain minimum public shareholding of 25 per cent in the public improvement, and eZone, a consumer
company. The promoters had sold their entire 40 per cent stake in rental arm DLF durables and electronics chain.
Cyber City Developers Ltd (DCCDL) for `11,900 crore and committed to invest this
amount in the company to cut net debt.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 103

Reviews
In this edition, we have reviewed Mahindra & Mahindra Financial Services and Tata Sponge Iron. We suggest our
reader-investors to HOLD in Mahindra & Mahindra Financial Services and Tata Sponge Iron.

Change Scrip’s Movement

M&M FINANCIAL SERVICES HOLD 12 Per Cent
CMP - `443.65
600
BSE CODE Reco. Price Face Value
500
532720 `504.35 `2

W
400

e had recommended small and medium enterprise (SME) 300

Mahindra & Mahindra loans, and various other financial
Financial Services in volume products. 200

33, issue No. 12, dated May 14–27, 2018, On the financial front, the net sales of the 100

under the ‘Special Report’ section. The
shares of the company were then trading
at `504.35. We had recommended the
stock looking at the attractive auto
finance market and a rise in demand for
vehicles.
Mahindra & Mahindra Financial
Services Limited is an NBFC. The
company serves the financing needs of
population residing in rural and
semi-urban areas of India. The company
provides several retail products and
services, such as financing vehicles for
commercial and personal use, tractors,
company has grown by 22.21 per cent to 0
`2,222 crore in Q3FY19 versus `1818 May- Jun-
18 18
Jul-
18
Aug-
18
Sep- Oct-
18 18
Nov-
18
Dec- Jan-
18 19
Feb-
19
crore in the same quarter of the previous
year. The PBDT of the company stood at
`1,529 crore in Q3FY19 and witnessed a FY18 was `4352.37, showing a growth
rise of 13.02 per cent YoY from of 24 per cent from `3523.52 crore in
`1,353.48 crore. The net profit has FY17. The company has witnessed a
however dropped by 19 per cent YoY to substantial 123 per cent increase in PAT
`318 crore in Q3FY19 versus `396.22 to `891 crore in FY18 as against
crore. `400.23 crore in the previous fiscal.
Since our recommendation, the share
In annual terms, the net sales have price has fallen by 12 per cent approxi-
increased by 16 per cent to `7,147 crore mately. The stock is likely to recover as
in FY18 as against `6173.91 crore in is evident from the financials. Hence, a
FY17. The PBDT of the company in HOLD is recommended.

Change 1200 Scrip’s Movement

TATA SPONGE IRON HOLD 32 Per Cent
CMP - `744.15
1100
BSE CODE Reco. Price Face Value
513010 `1,088.65 `10 1000

W
900
e had recommended Tata from its power plants is approximately
Sponge Iron in volume 33, 160 million kilowatt-hours. 800
issue no 14 dated June 11 - 24,
700
2018, in the ‘Cover Story‘ when the scrip On the financial front, the net sales of the
was trading at `1,088.65. Our company surged 21 per cent on a YoY 600
recommendation was based on high basis and stood at `260 crore in Q3FY19 Jun Jul- Aug Sep Oct Nov Dec Jan- Feb Ma
capacity utilisation, improving financials as against `214.47 crore. The profit before -18 18 -18 -18 -18 -18 -18 19 -19 r-19

of the company and favourable outlook
for the steel sector.
Tata Sponge Iron Limited is engaged in
the production of sponge iron by direct
reduction method of iron ore and
generation of power from waste heat. The
company operates mainly through two
segments, namely, manufacture of
sponge iron and generation of power.
The company manufactures sponge iron
by Tisco Direct Reduction technology.
interest, depreciation and tax stood at
`30.35 crore in Q3FY19, posting a 36 per
cent dip from `48.11 crore in Q3FY18.
The profit after tax (PAT) has fallen by 25
per cent and came in at `26.81 crore in
Q3FY19 as against `36 crore in the same
quarter of the previous year.
On the annual front, the net sales grew
44 per cent in FY18 to `800 crore as
compared to `557.31 crore in FY17. The
PBIDT exceeded 129 per cent to
crore in FY17. Also, the PAT went up
by 140 per cent to `140.88 crore in
FY18.
Since our recommendation, the stock of
the company has fallen by over 32 per
cent. However, the company we believe
would deliver substantial growth in the
upcoming quarters. Therefore, we would
like our investor-readers to HOLD the
stock. DS

The company’s total generation of power `225.76 crore in FY18 versus `98.71 (Closing price as of Mar 11, 2019)

104 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

Kerbside
The recommendations provided in this column are taken from various market
sources such as brokers, analysts, dealers and investment strategists, etc. These
recommendations may not be backed by strong fundamentals. Therefore we advise
readers to use their own discretion before investing in these recommendation

GOOD QUARTER
PVR owns and operates multiplexes across
PVR 19 states and UTs with a total of 748
BSE Code: 532689 screens. The company generates income
CMP: `1634.70 from the following segments: box office
(ticket revenue), food & beverages and
advertisements. The company’s revenues for Q3FY19 jumped 53 per
cent YoY to `857.3 crore, which is mainly attributed to higher
footfalls and improvement in occupancy rates on a YoY basis. The
advertisement revenue grew by 16 per cent YoY. Ad growth of 15 per
cent is achievable and management expects advertising to remain
strong in Q4. Our sources expect the Q4FY19 to be a good quarter.
Hence, one can accumulate this stock for some blockbuster gains in
the short-medium term.

RE- RATING The new

NTPC Central
BSE Code: 532555 Electricity
CMP: `151.10 Regulatory
Commission
(CERC) tariff regulations for the
period 2019-2024 as per one of
the leading broker’s report appears
to be dovish and accommodative,
which is a significant respite for
power companies. Within the space,
we like NTPC as the stock is likely
to witness a re-rating from the
brokerage house and, lately, the
volumes in the stock have seen a
spike, which indicates it is grabbing
a lot of attention of investors and
traders.
LOW BASE
Torrent
Pharmaceuticals
BSE Code: 500420
CMP: `1845.60
After having witnessed a
depressing performance on Dalal
Street for quite a long time, the
pharma stocks are once again
buzzing on the street. Some of the big brokers are indicating that
the listless days for this sector are coming to an end and the sector
could stage a recovery from a low base. In the pharma space, our
sources suggests that one stock they particularly like is Torrent
Pharma on the back of improving fundamentals and its positioning.
Also, the stock has seen jump in volumes and there is a buzz that
smart players are accumulating the stock. Risk-takers can go for
this scrip and hope to make some quick buck.

Balkrishna Industries

AND FINALLY.. BSE Code: 502355

CMP: `934

Balkrishna Industries is India’s leading player in the

global ‘Off-highway tyre (OHT)’ market. As per the
reports, the company is expecting healthy demand going
forward demand from farmers and also the government
focus on the agriculture sector. The company is working
on `2,000 crore expansion plan in India to meet the
increasing demand of its products globally. Additionally,
the stock is technically poised for an upmove in the near
term. Traders can take exposure in this scrip for some DS
trading gains.
(Closing price as of Mar 12, 2019)

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 105

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Exit Strategy

Equity MF—The Best Wealth It has always been a tough task for me as to when should I am
supposed to exit MFs. In the previous issue, your cover story
“When should you exit from your mutual fund” helped me in

Creating Asset Class that respect. Now looking forward for the next issue. Keep up
with the good work.

T
- Swati Gupta
he Indian equity markets might have got their
mojo back. This is reflected in the rise of the key Editor Responds: Thank you for writing to us. We understand
equity indices. They are up by 3 per cent to 10 exiting from a fund is as tough decision as entering the fund
per cent in a month till date. The overall market therefore we wanted to deal with this in most comprehensive
cap of the listed companies has increased by almost 5 per manner. Stay tuned for other insightful stories.
cent during this period. It has added `6.4 lakh crore of
market cap in the last seven trading sessions ending March
12, 2019. It is almost equivalent to total assets under
management (AUMs) of equity schemes at the end of
February 2019. Content
Such a rise in the equity markets has lifted the net asset
values of almost all the funds. This, we believe, will help in
Cover Story
halting the fall in the inflows in equity mutual funds that
we are witnessing currently. The month of February saw 15 Mutual Fund
MF Page
2
mutual fund inflows falling to `5,122 crore, hitting a
25-month low. Historically, equities remain one of the best Wealth-Creators
wealth creating asset classes in the long run. However, in
the short run, you may see some uncertainty or volatility
in returns. This should not make you shy away from
investing in equity funds. Our cover story this time shows Financial Planning MF Page
14
how equity MFs have created wealth for their investors.
But it demands discipline.

You should remain invested and should avoid trying to

Special Report MF Page
16
time the market. Studies have shown that common Are Mutual Funds Enough For
investors are not skilled enough to time the market and
moving between different funds. However, we at DSIJ have Portfolio Diversification?
developed a unique ranking method that you can use
actively and effectively to generate optimum returns by
switching funds at the appropriate time. From this issue,
we have also introduced 'risk' in our data bank that will
Knowledge Series MF Page
18
help you to figure out investment as per your risk appetite Understanding The 'Fact
(more on this on page no. 21).
Sheet' Of Mutual Fund
Hope you will use our ranking method to make profitable
investment decision.
MF Data Bank MF Page
21
Announcing Version 2.0 of
SHASHIKANT MF Ranking Methodology
DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 107
Cover Story
Mutual Fund
Wealth-Creators
H
ow many times you have experienced that, while having
your lunch or dinner in a restaurant, even if the starters
and main course were not so impressive, if the dessert
was awesome, you are more likely to assign a better rating to the
restaurant. This happens with most of us because the
conditioning of our brain is such that it is the last experience that
matters the most in your future decision making.
The same thing happens to your investment decision also. The
latest returns or performance of an asset class determines how
you view its future returns and whether you should invest or
avoid investing in it. The equity market and its corollary the
equity mutual funds have generated—most of them, if not all—
negative returns in the last one year. This has led many of you to
tighten your purse strings and moderate your investments in
mutual funds. Currently, the inflows into the equity funds are at
two-year low, which stands testimony to the slowdown.
However, if you overcome this bias, you can see the clear
picture and can make a rational investment decision.
The mutual funds have generated one of the best returns for
These are not our recommended list of schemes and the usual disclaimer of 'past returns may not be repeated in future' applies to these funds also.
108 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019
MF page - 02
their investors in the long run. For example, SBI Small Cap
Fund in the last five years ending December 2018 has generated
annualised return of almost 30%. What this means that if you
had invested `1 lakh at the start of 2014, it would have become
`3.69 lakh at the end of 2018, almost 3.7 times your original
investment. This despite the year 2018 being one of the worst
years for small-cap companies and mutual funds since 2008.
This fund alone had witnessed a fall of 16 per cent in 2018.
Therefore, we can see that mutual fund investments in the long
term generate wealth for their investors.
In the following pages, we are listing down the top 5 funds in
terms of returns from each major equity fund category, namely,
large-cap, mid-cap and small-cap. To arrive at this list, we have
considered the change in NAV in the last five years ending
December 2018. Our analysis of historical returns shows that
small-cap funds have generated the best returns in the last five
years, followed by the mid-cap and large-cap funds. This was
even after 2018 being a good year for the large-cap funds as, on
an average, these funds created positive returns.
DSIJ.in
Cover Story MF page - 04

Reliance Large Cap Fund

NAV (`)
08 Mar., 2019 33.58 AUM (` Cr.)
28 Feb., 2019 11694.5
14.93% S&P BSE 100 - TRI
Benchmark
Sailesh Raj Bhan
Fund Manager (s)
*Expected Rate of Return in Next One Year

TOP 3 Sectors The fund has consciously avoided momentum investing and
SECTOR % TO NET ASSETS overpaying for companies for short term gains. The emphasis on
Financial 35.48 right businesses along with right valuations with a medium term investment
Healthcare 11.26 horizon has been critical to fund's wealth creation journey.
Engineering 9.66
Sailesh Raj Bhan, Deputy CIO - Equity Investments, Reliance Mutual Fund
Comparative Performance Between
Fund & Benchmark 2014-01-02 / 2018-12-31 Average Rolling Returns (%)
2.2
18.00
Reliance Large Cap
S&P BSE 100 - TRI 16.87
2.0
17.00

15.85
1.8
16.00

1.6 15.00

1.4 14.00
13.02
1.2 13.00

1.0 12.00
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Return Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018

* Expected one year return is based on the assumption that current holdings remain constant.

SBI Blue Chip Fund

NAV (`)
08 Mar., 2019 37.28 AUM (` Cr.)
28 Feb., 2019 20395.5
16.01% S&P BSE 100 - TRI
Benchmark
Sohini Andani
Fund Manager (s)
*Expected Rate of Return in Next One Year

Comparative Performance Between TOP 3 Sectors

2014-01-02 / 2018-12-31
Fund & Benchmark SECTOR % TO NET ASSETS
Financial 34.97
SBI BLUE CHIP FUND
S&P BSE 100 - TRI FMCG 8.96
2.0
Automobile 8.35

1.8
Average Rolling Returns (%)
16.00
1.6 15.67
15.50 15.17

1.4 15.00

14.50

1.2 14.00
13.57
13.50

1.0 13.00

12.50
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018 Return Return

110 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 MF page - 05

ICICI Prudential Bluechip Fund

NAV (`)
08 Mar., 2019 40.55 AUM (` Cr.)
28 Feb., 2019 20100.8
15.17% NIFTY 100 - TRI
Benchmark
Anish Tawakley & Rajat Chandak
Fund Manager (s)
*Expected Rate of Return in Next One Year

TOP 3 Sectors
Bottom-up approach in stock picking coupled with
SECTOR % TO NET ASSETS
aggressive position in high conviction stocks have aided
Financial 29.47
the fund in terms of its performance.
Energy 15.73
Technology 9.41 Anish Tawakley, Head of Research, ICICI Prudential AMC
Comparative Performance Between
Fund & Benchmark 2014-01-02 / 2018-12-31 Average Rolling Returns (%)
2.0 ICICI Prudential Bluechip Fund
NIFTY 100 - TRI
15.00 14.64

1.8
14.50
13.88
14.00
1.6 13.50

13.00
1.4 12.51
12.50

1.2
12.00

11.50
1.0 11.00
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Return Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018

Aditya Birla Sun Life Focused Equity Fund

NAV (`)
08 Mar., 2019 56.64 AUM (` Cr.)
28 Feb., 2019 3944.4
17.58% NIFTY 50 - TRI
Benchmark
Mahesh Patil
Fund Manager (s)
*Expected Rate of Return in Next One Year

Comparative Performance Between TOP 3 Sectors

2014-01-02 / 2018-12-31
Fund & Benchmark SECTOR % TO NET ASSETS
Financial 38.48
2.0 Aditya Birla Sun Life Focused Equity Fund
NIFTY 50 - TRI Technology 11.95
Energy 11.61
1.8

Average Rolling Returns (%)

1.6
15.00
14.54
14.50
1.4
14.00 13.76

13.50

1.2 13.00

12.50 12.35

12.00
1.0
11.50

11.00
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018 Return Return

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 111

Cover Story MF page - 06

Motilal Oswal Focused 25 Fund

NAV (`)
08 Mar., 2019 20.66 AUM (` Cr.)
28 Feb., 2019 1031.9
15.05% NIFTY 50 - TRI Siddharth Bothra, Abhiroop Mukherjee &
*Expected Rate of Return in Next One Year Benchmark Gautam Sinha Roy Fund Manager (s)

TOP 3 Sectors We use both quantitative and qualitative screening to

narrow down on a core investment universe, which comply
SECTOR % TO NET ASSETS with our investment philosophy. From this universe we narrow down
Financial 47.96 on our top conviction ideas across sectors. We do not shy from backing
Technology 11.05 our top conviction ideas with adequate concentrated weights.
Automobile 8.64
Siddharth Bothra, Sr. VP & Fund Manager, MOAMC
Comparative Performance Between
Fund & Benchmark 2014-01-02 / 2018-12-31 Average Rolling Returns (%)
2.0 Motilal Oswal Focused 25 Fund
NIFTY 50 - TRI
15.50 15.17
14.88
15.00
1.8
14.50

1.6 14.00

13.50
1.4 12.93
13.00

12.50
1.2

12.00
1.0 11.50
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Return Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018

L&T Midcap Fund NAV (`)

08 Mar., 2019 129.49 AUM (` Cr.)
28 Feb., 2019 3732.9
16.22% Nifty Midcap 100 - TRI Soumendra Nath Lahiri & Vihang Naik
Benchmark Fund Manager (s)
*Expected Rate of Return in Next One Year

TOP 3 Sectors
Comparative Performance Between
Fund & Benchmark 2014-01-02 / 2018-12-31 SECTOR % TO NET ASSETS
Financial 18.46
L&T Mid Cap Fund
Construction 13.89
3.0 Nifty Midcap 100 - TRI
Healthcare 10.54

2.5 Average Rolling Returns (%)

25.00
24.41
24.50
2.0 23.86
24.00
23.50
23.00
1.5 22.50 22.11
22.00
21.50
1.0 21.00
20.50
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018 Return Return

112 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 MF page - 07

Kotak Emerging Equity Scheme

NAV (`)
08 Mar., 2019 37.36 AUM (` Cr.)
28 Feb., 2019 3535.2
14.26% Nifty Midcap 100 - TRI
Benchmark
Pankaj Tibrewal
Fund Manager (s)
*Expected Rate of Return in Next One Year

TOP 3 Sectors We believe that the key factor which has helped the fund generate
SECTOR % TO NET ASSETS superior performance has been our philosophy to invest in good
Financial 19.79
businesses run by competent and honest promoters, generating strong cash flows
and return on capital over longer periods of time.
Engineering 14.83
Pankaj Tibrewal
Chemicals 14.33 Sr. VP & Fund Manager (Equity), Kotak Mahindra AMC

Comparative Performance Between

Fund & Benchmark 2014-01-02 / 2018-12-31 Average Rolling Returns (%)
3.0 Kotak Emerging Equity Scheme
24.00
Nifty Midcap 100 - TRI 23.47
23.50

2.5
23.00
22.35
22.50
22.00
2.0 21.50
21.00 20.57
20.50
1.5
20.00
19.50
1.0 19.00
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Return Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018

Edelweiss Mid Cap Fund NAV (`)

08 Mar., 2019 25.78 AUM (` Cr.)
28 Feb., 2019 810.90
14.73% Nifty Midcap 100 - TRI
Benchmark
Harshad Patwardhan
Fund Manager (s)
*Expected Rate of Return in Next One Year

Our strategy for wealth creation involves investing in a portfolio of well

TOP 3 Sectors run businesses with large reinvestment potential. We focus on
SECTOR % TO NET ASSETS identifying growth businesses which are relatively under-recognized. This way
Financial 23.09 our investors benefit both from compounding of earnings as well as valuation
Services 13.29 re-rating of portfolio businesses.
Healthcare 11.73
Harshad Patwardhan, CIO - Equity of Edelweiss Asset Management Limited
Comparative Performance Between
Fund & Benchmark 2014-01-02 / 2018-12-31
Average Rolling Returns (%)
3.0
Edelweiss Mid Cap Fund
25.00
Nifty Midcap 100 - TRI 22.65
21.10

2.5 20.00 18.21

15.00
2.0

10.00

1.5
5.00

1.0 0.00
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Return Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 113

Cover Story MF page - 08

HDFC Mid-Cap Opportunities Fund

NAV (`)
08 Mar., 2019 52.93 AUM (` Cr.)
28 Feb., 2019 20538.8
17.50% Nifty Midcap 100 - TRI
Benchmark
Chirag Setalvad & Amar Kalkundrikar
Fund Manager (s)
*Expected Rate of Return in Next One Year

TOP 3 Sectors
Comparative Performance Between
Fund & Benchmark 2014-01-02 / 2018-12-31 SECTOR % TO NET ASSETS
Financial 22.65
HDFC MidCap Opportunities Fund
Engineering 10.72
Nifty Midcap 100 - TRI
Chemicals 9.63
2.5

Average Rolling Returns (%)

2.0 21.00
20.64
20.50
20.50

20.00
1.5
19.50

18.92
19.00

1.0 18.50

18.00
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018 Return Return

Franklin India Prima Fund

NAV (`)
08 Mar., 2019 927.31 AUM (` Cr.)
28 Feb., 2019 6491.2
14.35% Nifty Midcap 150 - TRI R. Janakiraman & Hari Shyamsunder
Benchmark Fund Manager (s)
*Expected Rate of Return in Next One Year

Comparative Performance Between TOP 3 Sectors

2014-01-02 / 2018-12-31
Fund & Benchmark SECTOR % TO NET ASSETS
Financial 19.18
Franklin India Prima Fund
Nifty Midcap 150 - TRI Engineering 11.66
2.5 Automobile 8.71

Average Rolling Returns (%)

2.0 21.00 20.68 20.62
20.50
20.00
19.50
1.5 19.00
18.50 18.15
18.00
17.50
1.0 17.00
16.50
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018 Return Return

114 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 MF page - 09

SBI Small Cap Fund

NAV (`)
08 Mar., 2019 50.40 AUM (` Cr.)
28 Feb., 2019 1604.5
8.23% S&P BSE Small-Cap - TRI
Benchmark
R. Srinivasan
Fund Manager (s)
*Expected Rate of Return in Next One Year

Comparative Performance Btw TOP 3 Sectors

2014-01-02 / 2018-12-31
Fund & Benchmark SECTOR % TO NET ASSETS
FMCG 19.96
SBI Small Cap Fund
S&P BSE Small-Cap - TRI Financial 15.19
4
Engineering 13.45

Average Rolling Returns (%)

3
32.00 31.45
31.00

30.00 29.36

2 29.00

28.00

27.00 26.73

26.00

1 25.00

24.00
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018 Return Return

Reliance Small Cap Fund

NAV (`)
08 Mar., 2019 39.16 AUM (` Cr.)
28 Feb., 2019 7244.9
15.33% S&P BSE Small-Cap - TRI Samir Rachh &
*Expected Rate of Return in Next One Year Benchmark Dhrumil Shah Fund Manager (s)
Most important thing which has worked for us is the support of our
TOP 3 Sectors investors. They stood by us even during bad times and kept long term
SECTOR % TO NET ASSETS outlook and faith- which enables us to take long term calls.
Engineering 14.31
Chemicals 13.40
Financial 12.64 Samir Rachh, Fund Manager, Reliance Mutual Fund
Comparative Performance Between
Fund & Benchmark 2014-01-02 / 2018-12-31
Average Rolling Returns (%)
Reliance Small Cap Fund
3.5 S&P BSE Small-Cap - TRI 27.50 27.04
27.00
3.0 26.50 26.29
26.00
2.5 25.50
25.00
2.0 24.50 24.23
24.00
1.5 23.50
23.00
1.0 22.50
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Return Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 115

Cover Story MF page - 10

DSP Small Cap Fund

NAV (`)
08 Mar., 2019 52.93 AUM (` Cr.)
28 Feb., 2019 5634.8
14.04% S&P BSE Small-Cap - TRI
Benchmark
Vinit Sambre & Resham Jain
Fund Manager (s)
*Expected Rate of Return in Next One Year

Comparative Performance Between TOP 3 Sectors

2014-01-02 / 2018-12-31
Fund & Benchmark SECTOR % TO NET ASSETS
Financial 17.37
DSP Small Cap Fund
3.5 S&P BSE Small-Cap - TRI Chemicals 15.88
Healthcare 12.37
3.0

Average Rolling Returns (%)

2.5 26.00 25.80

25.50

25.00
2.0
24.50

24.00
23.62
1.5 23.50 23.27

23.00

1.0 22.50

22.00
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018 Return Return

Franklin India Smaller Companies Fund

NAV (`)
08 Mar., 2019 52.85 AUM (` Cr.)
28 Feb., 2019 6777.2
15.91% Nifty Smallcap 250 - TRI
Benchmark
R. Janakiraman & Hari Shyamsunder
Fund Manager (s)
*Expected Rate of Return in Next One Year

Comparative Performance Between TOP 3 Sectors

2014-01-02 / 2018-12-31
Fund & Benchmark SECTOR % TO NET ASSETS
Financial 20.62
Franklin India Smaller Companies Fund
3.0
Nifty Smallcap 250 - TRI Construction 11.25
Chemicals 10.80

2.5
Average Rolling Returns (%)
23.00
22.44
2.0 22.50
22.00
21.45
21.50
21.00
1.5
20.50
20.06
20.00
19.50
1.0 19.00
18.50
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018 Return Return

116 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

 MF page - 11

Axis Small Cap Fund

NAV (`)
08 Mar., 2019 27.17 AUM (` Cr.)
28 Feb., 2019 222.8
9.37% Nifty Smallcap 100 - TRI
Benchmark
Anupam Tiwari
Fund Manager (s)
*Expected Rate of Return in Next One Year
The portfolio construction process is geared towards building a cross-sectional
TOP 3 Sectors compact portfolio with an aim to minimize the overall portfolio risk. Since our
SECTOR % TO NET ASSETS approach to investing is long term, the portfolio churn remains low. As stock holders,
Consumer Durable 11.02 we believe in remaining invested through a business cycle to reap the rewards of business
Financial 10.86 strategy. This has worked well for us as evidenced through our portfolio over the years.
Construction 9.89
Anupam Tiwari, Equity Fund Manager, Axis Mutual Fund
Comparative Performance Between
Fund & Benchmark 2014-01-02 / 2018-12-31
Average Rolling Returns (%)
Axis Small Cap Fund
22.00
Nifty Smallcap 100 - TRI 20.75
2.5
20.00 19.55

18.00
2.0 16.68
16.00

1.5 14.00

12.00

1.0 10.00
1-Year Average Rolling 3-Year Average Rolling 5-Year Rolling Return
Return Return
Jan 02 2014 Jan 01 2015 Jan 01 2016 Jan 02 2017 Jan 01 2018 Dec 31 2018

7
 Expert Speak
Focus On Tax
Efficiency Of Returns
H
aving an investment plan in place helps in
keeping investments on track during one’s
defined time horizon. Unfortunately, not many
investors follow this disciplined approach. In
fact, investors establish their investment styles
and strategies in different ways. On the one hand, there are
investors who begin investing with a clear strategy and
objectives, on the other hand, there are those who don’t really
plan and hence learn the ropes the hard way. However, an
important aspect of investment process that is often overlooked
by many investors in both the categories is the tax efficiency
of returns.
No wonder, traditional instruments like bank deposits, bonds,
debentures and small saving schemes remain the most favoured
options for millions of investors in our country, despite offering
lower returns as compared to market-linked products offered
by mutual funds. Tax inefficiency of returns, that is, interest is
taxed at one’s applicable tax rate, for most of these options
further makes a dent in what investors get to keep.
In reality, tax efficiency of returns has to be an essential element
of one’s investment strategy. In fact, tax efficiency becomes even
more important when one invests for the medium to long-term
investment goals such as children’s education, buying a house
and retirement planning.
One of the ways to improve pre-tax and post-tax returns is to
look beyond traditional investment options and invest in
tax-efficient options like mutual funds. On the capital gains
front, short term capital gains in equity and equity-oriented
hybrid funds, i.e. gains on an investment redeemed within 12
months are taxed at a flat rate of 15 per cent. However, long
term capital gain, i.e., gain on investments redeemed after 12
months are taxed @ 10 per cent. Similarly, the applicable DDT
for these funds is 10 per cent. As regards debt funds, while short
118 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019
MF page - 12
Hemant Rustagi
Chief Executive Officer, Wiseinvest Advisors
term capital gains are taxed at one’s applicable tax rate, long-
term capital gains, that is, gains on investments redeemed after
36 months are taxed at 20 per cent after indexation. The
applicable DDT for dividend option is 25 per cent (29.12 per
cent, including surcharge and cess).
It is important to consider these tax rules while selecting
option, that is, dividend, growth or dividend re-investment. For
investment in equity and equity-oriented funds to achieve
long-term goals like children’s education, their marriage and
one’s own retirement planning, the obvious choice would be
“growth option”. It allows investors to benefit from the power of
compounding as well as tax efficiency of returns.
Similarly, in case of debt funds too, the choice of option will
depend upon the time horizon. For a time horizon of less than
36 months, it would be prudent to opt for dividend payout or
dividend reinvestment, if the applicable tax rate is 30 per cent.
However, growth option will be a better bet for investors in tax
bracket of up to 20 per cent. Similarly, for an investment with a
time horizon of 36 months or more, growth option would be
ideal as one derives indexation benefit.
As is evident, investing with a clearly defined time horizon goes
a long way in letting one make the right choices. It is equally
important to minimize portfolio turnover to improve tax
efficiency of returns. This can be done by avoiding ad hoc
decisions based on the market moods. In other words, by
assessing the tax consequences before making abrupt changes
in the portfolio and resisting the temptation to sell investments
for reasons other than poor performance and changes in one’s
personal circumstances, the tax burden can be reduced. It also
pays to make the right selection of funds and options therein to
minimize the need to make changes in the portfolio in the short
term. Last, but not the least, by honoring one’s time
commitment, haphazard decisions can be avoided. DS
DSIJ.in
Financial Planning
How Recency Bias Affects
Your Portfolio Performance?
How To Avoid Recency Bias?
Prakash Lohana, CFPCM, CPFA, Ascent Financial Solutions Pvt.ltd
I
f I ask you to recall the names of 10 people you met this
month, whom would you recall? Chances are you will
recall the names of people whom you met most recently.
This is called the recency effect. Similarly, if I ask you for
an opinion about the behaviour or performance of your
colleagues or employees, most of the time, their recent
behaviour will influence your opinion. If one of your
colleagues was very polite and humble since the beginning of
your relationship but has not behaved well off late, your
opinion might turn negative. So your recent experience affects
your opinion the most and forms the recency bias. Events
which occur recently have maximum impact on your mind.
Recency bias is one of the most common biases affecting our
investment and other decisions in life. Here, events which have
happened recently or information which we have received
recently impacts our decisions to a greater extent.
When it comes to investing, people invest in an instrument
which has recently done well. Particularly, you will see that in
the stock market, maximum investment comes in when the
markets are peaking.
The chart above gives data from October 1999 to March 2017.
The red line shows Sensex levels, whereas the black line
indicates gross mutual fund investments. The chart clearly
shows that whenever markets are doing very well and going
high, investments in equity funds sharply rise and vice versa.
So, most of the times, people invest when the equity market is
very high and stay away when the markets have fallen sharply.
120 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019
MF Page - 14
This behaviour is universal and the reason behind it is the
recency effect. When markets go up and the returns of equity
mutual funds are very good in the recent past, investors look at
the recent past and start investing. Here, the subconscious
mind starts believing that this behaviour of the markets will
continue and they will make good returns, so investment at
these levels increase. Similarly, when the markets fall and the
recent past is not so good, people start believing that markets
will fall further and therefore avoid investing more money in
equity.
How the recency effect creates an illusion of
safety and an illusion of risk?
Actually, the recency effect creates an illusion of safety and also
an illusion of risk in the minds of investors.
Let me illustrate with a historical example.
In January 2008, when the Sensex touched the 21,000 level for
the first time, it was an all-time high. In the preceding year
(from Jan 2007 to Jan 2008), Sensex had moved up from the
14,000 level to 21,000 level, so it was a rise of around 50%. In
this month (Jan 2008), equity mutual funds had the highest net
inflow of `13,678 crore from the investors. Here, at this point,
the Sensex had gone up by around 50% in one year, but the
economy (corporate profitability) had not grown by even 20%
and no economy can grow by 50% in one year, so at this point,
markets were extremely overvalued and the risk-reward ratio
was unfavourable. But due to the recency effect, investors
started feeling very comfortable and forgot to consider the risk
DSIJ.in

of the overvalued market. On the contrary, they started
believing that this will continue, so here there is an illusion of
safety. There was no safety when Sensex was at 21,000 level, but
there was an illusion of safety. This behaviour of investing more
money at higher market levels created a bubble in the stock
market and we all know what happened next.
On the other side, when the markets started falling
immediately after this and saw the bottom, Sensex level in
March 2008 (when the Satyam fraud was exposed) of around
8,344, the net investment in equity mutual funds was around
`544 crore only, which was not even 10% of what was recorded
in January 2008. Here, the markets had fallen by around 61%,
so ideally there was hardly any risk because economic activity
in the country or corporate profitability had not fallen by even
5%, which shows that markets were undervalued and the
risk-reward ratio was favourable. But unfortunately, those
investors who were ready to buy equity at 21,000 Sensex level
found equity markets costly at 8,300 Sensex level and were not
ready to buy or hold. Isn't this a strange behaviour? Yes, but the
reason is that at the Sensex level of 8,300, there was no risk
actually, as whatever worst could have happened had already
happened. But as the recent past was negative, there was an
illusion of risk. There was no actual risk, but there was only the
illusion of risk.
Both of these behaviours were irrational. Those who invested
more money at 21,000 level in January 2008 had increased their
average purchase price, as a result of which they could not
make money for the next few years and saw negative returns in
the next one year. Similarly, those who were not investing or
redeeming their money from equity funds at 8,300 level in
March 2009 could not gain out of the rising market in 2009-10
because the fall was an opportunity to reduce their average
purchase price in equity, but they lost the opportunity. Ideally,
they should have behaved exactly opposite to their actual
behaviour. But the recency effect did not allow this.
Recency effect in real estate: The recency effect is not only
seen in equity investing but also in the real estate market. From
2005 onwards, real estate prices in India, and in particular,
Gujarat, started moving up. As a result, we saw that those who
invested in properties between 2005 to 2007 got good returns by
2009. At this time, the equity market had fallen sharply, so at this
point of time, real estate investment had given very good returns
and equity investment had not given good returns in the recent
past. As a result, investors started putting more and more money
into the real estate market and this behaviour was again
repeated, just as it happened in the stock market in 2007. By
2012, property prices went up sharply. Maximum investment
happened in 2012, and since then, property prices in most of the
regions have fallen or have remained stagnant for the last five
years. Those who bought properties in 2005 had multiplied their
money by four to five times by 2012. So, ideally, they should
Ascent Financial Solutions Pvt.ltd n Website: www.ascentsolutions.in
DSIJ.in
MF page - 15
have sold their properties and booked profit, but they behaved
exactly the opposite and bought more properties in 2011 and
2012. So, this increased their average purchase price, which
caused the prices to go up to the level of the prices in 2011-12.
Thereby, they lost the golden opportunity to book profits.
After demonetization, markets have gone up by around 15% to
20% in just 5 months and, as a result, in the recent past when the
market is very positive once again investors are investing in
equity. So be careful while taking your investment decisions and
try to avoid impulsive investing.
To conclude, the recency bias is the most common and frequent
bias affecting our investment decisions. So, to make rational
decisions, we have to learn how to keep our decisions free from the
recency effect. Following are a few suggestions which I recommend
you adapt to keep yourself away from the recency bias.
Read History: It is said that history repeats itself. So keep
tracking the history of the stock markets and investments. Every
few years, market cycles are repeated and investors make the same
type of mistakes. Every time when the market is high, the hopes
are at peak and due to the recency effect, investors believe it will
keep going high because this time it is different and markets will do
very good. Sir John Templeton had said that "The four most
dangerous words in investing are: 'this time it's different.'" My
advice to you is whenever someone says 'this time it is different',
please run away from there. Don't listen to him. Reading history
will help you to think from another perspective and get away from
the current market rises or falls and you will do things rationally.
Delay your decisions by 2 to 3 days: Whenever recency
effect is at peak, you will feel tempted to take your investment
decisions either buying at the peak of the market or selling at the
bottom of the market after it falls sharply. Try to postpone your
decision for three days. Let 72 hours pass and your emotions
will calm down and you will be able to act rationally.
Adopt right portfolio management strategies: Your
investment decisions (whether buying or selling) should not be
based on the current market events or news. It should be based on
long-term strategies like asset allocation and portfolio rebalancing.
Those who don't adopt strategies are actually following tactical
money managers.
Is this rational?: Whenever you find a situation where any
asset class—whether it is equity or real estate—is performing on
extreme sides (extremely good or extremely bad), before taking
any buying or selling decisions, just ask yourself "Is this rational?"
"Is the continuous rise in equity rational?" Meaning, is it supported
by the rise in profitability? Or, when the market falls sharply, try to
find if the profitability of the companies has also fallen to the same
extent. This is the essence of logical thinking and one mantra that
will lead you to rational and correct decisions.
MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 121
Special Report
Are Mutual Funds Enough For
Portfolio Diversification?
You may think that by investing in various MFs you are adequately
diversified, is it so? DSIJ explains what are the different asset classes and
how can you diversify your portfolio in the true sense.
M
ore and more investors have become increasingly
aware of investments in mutual funds in the last
few years and have increased their MF
investments. However, the recent decline in the
equity markets and paper downgrades in the debt markets have
led many retail investors to redeem their mutual fund
investments. The situation becomes scarier in the case of
investors who have invested in direct plans, where the rate of
redemption is higher than the regular plans. This is the first
serious decline in MF investments witnessed by many investors
who started investing after 2013, which shows the level of
confidence investors have in mutual funds.
But the problem starts with the MFDs (Mutual Fund
Distributors) or, for that matter, anyone who is selling mutual
funds to the investors. They try to convince their clients that
122 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019
MF page -16
mutual fund investments are one of the safest options as
compared to other asset classes. Here lies the gap between the
perception and the reality. First of all, investors should
understand that mutual funds are in no way a safe investment,
at least not as safe as your savings bank account or bank FDs
(fixed deposits). Any MF investment does carry some amount
of risk with it. If you are expecting great inflation-adjusted
returns from mutual funds, then you should be ready to inherit
a great amount of risk by default.
Many investors believe that since mutual fund schemes invest
in various companies, they are adequately diversified. But the
reality is altogether different. To understand this, let us first
take a look at the broad asset classes, apart from mutual funds.
These are real estate, alternative investments (including private
DSIJ.in

equity and angel investing) and commodities, including gold.
So, if we look at the broader asset categories, then you may not
be adequately diversified even if you have invested in various
equity mutual funds. This is because the MFs may have invested
only in equities. But why do we need to invest in different asset
classes? To understand this, let us check these broad asset
classes in brief and look at their performance.
Real Estate
Real estate is often held as a part of a larger portfolio and is
generally considered to be less liquid. Although the introduction
of REITs (Real Estate Investment Trusts), which are going to be
launched soon and will be traded in the secondary market, will
make them liquid, these are yet to be introduced in India. Real
estate goes well as part of your portfolio because it has several
traits that help in enhancing the returns of an overall larger
portfolio and/or reduce the overall portfolio risk.
Alternative Investment Fund
4
AIF (Alternative Investment Fund) can be viewed as any
investment that is not a traditional investment like equities,
fixed income or real estate. These include private equity, angel
investing, venture capital investing, hedge funds, etc. However,
these instruments usually involve big ticket investments.
Commodities
Commodity investment means investing in various types of
physical goods or products. This can be used as investment, or
many a time, it can also be used for hedging purpose, especially
by producers as well as end-users. The prices of these
commodities depend on their demand and supply in the
market. As far as commodities are concerned, they are not
meant for investing, rather they are meant for trading or
hedging, with the exception of gold and silver, which can be
used as investments.
As SEBI has a taken a positive stance and is likely to allow mutual
funds to invest in commodity derivatives, you can see a lot more
mutual fund schemes using them to enhance their returns or
minimize the risk. But, at the moment, we need to wait and
watch when SEBI allows it and how these would perform.
Understanding traits of various asset classes
Traits Mutual Real
Funds* Estate
Returns High High
Liquidity High Very Low^
volatility High Medium
Ease of understanding Average Low
Low investment amount Yes No
Periodical contribution availability Yes No
* Traits with respect to equity mutual funds.
^ In case of REITs, liquidity is high as they are tradable in secondary markets.
DSIJ.in
MF page - 17
Let's get practical
For most of us, if we invest in a few mutual fund schemes,
we feel we have a well-diversified portfolio. The reason
behind the same is that mutual funds not just invest in
stocks, but they also invest in corporate debt securities and
government securities. Some schemes also invest in gold.
As per the recent media reports, SEBI may allow mutual
funds to invest in commodity derivatives. This would increase
the spectrum of sub-asset classes in which mutual funds
can invest.
However, if you wish to invest in broader asset classes
individually and diversify your portfolio in the real sense, then
you need a really big-ticket size as the other asset classes require
huge investments.
For example, if you wish to invest in real estate (and not in
companies engaged in the business of real estate), then you need
big money to purchase property, be it residential or commercial.
To make investment in real estate a bit affordable, SEBI has
allowed retail participation in REITs. Still, the minimum
investment amount is `2 lakh.
For some investors, REITs would be one of the ways to diversify
their overall portfolio, but many investors may not be able to
afford the desired minimum investment amount of `2 lakh. In
case of AIF, an individual investor needs to invest a minimum
qualifying amount of `1 crore.
In the case of commodities, though the investment is not too
big, it calls for an expert knowledge as the returns from
investing in commodities can be very volatile and also each
commodity has its own market dynamics and cycle. The
minimum amount with which you can start investing in a
commodity is `5000. However, you have to pay the margin
money, which is generally 5-10% of the commodity product
and varies from product to product.
Summing up
Diversification plays an important role in generating returns
on your investment. The rationale behind diversification is that
any economic activity has different implications on different
asset classes. Hence, what's good for the equities may not be as
good for the commodities. To ensure your portfolio is
responsive no matter what the economy is doing, you may
Alternative Commodities
want to include most of the broader asset classes as part of
Investment Fund your holdings.
Very High Medium
Low Low
If we look at it in a practical manner, we find that some of the
High High
asset classes have a very high qualifying amount of investment
Very Low Low
and hence these are beyond the reach of a retail investor, which
deprives him the benefits of diversification. Therefore, mutual
No No
fund investing in different asset classes such as equity, debt or
No No
commodity is advisable. The actual investment should be made
in consultation with your financial advisor and should be based
on your risk profile and your financial plan. DS
MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 123

Knowledge Series
W
hen it comes to mutual funds, the 'fact sheet' is one
of the reports required to be published by the fund
houses every month. So, what does the fact sheet
mean for the investors? If we go by the bare definition of a fact
sheet, it is a paper giving useful information about a particular
issue, especially the one debated on a television/radio
programme. However, when it comes to mutual funds, fact
sheet means a document which gives you valuable information
about a particular mutual fund scheme.
If you have invested in a mutual fund, then you may have
definitely checked the fact sheet of the scheme on the AMC's
(Asset Management Company's) website. It is a review
statement which is prepared and uploaded by fund houses
every month on their respective websites. As per SEBI's
(Securities and Exchange Board of India's) regulations, it is
mandatory on the part of AMCs to do so. Fact sheet is one of
the most important documents for an investor, as it gives
detailed information pertaining to a particular fund. In fact,
you may also use the fact sheet to make investment decisions.
As you might have understood what a fact sheet means, now let
us understand what all things to look for in a fact sheet. This
will differ from category to category.
What to look in a fact sheet of equity funds?
First, you should read the equity market outlook and the
commentary given by the CIO (Chief Investment Officer)
124 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019
MF Page - 18
Understanding The
'Fact Sheet'
Of Mutual Fund
of the respective fund house. It will give you an overall
picture as to where the markets are heading, the fund
house's strategy and whether the strategy is in line with
your thinking.
The next thing you need to do is to look at the
investment portfolio of the fund. This will tell you the
companies in which the fund has invested and in what
proportion. You will also get to know the sectors towards
which the fund is inclined. Also, if you are invested in a
diversified equity fund which can invest across market-
caps with no restrictions, look at the extent to which it
has exposure to mid-cap and small-cap companies.
The fact sheet will also show you the most 'interesting'
part, that is, the returns. Don't get obsessed with the
monthly and quarterly returns and don't take decisions
on the same. Ideally, if you are investing in equity funds,
then your focus must always be on the long-term with
minimum time horizon of 5 years.
The fact sheet shows various statistical parameters such
as Sharpe ratio, standard deviation, beta, etc. of the fund,
which will help you understand the amount of risk the
fund manager is taking to generate returns.
You will also find the expense ratio of the fund. Generally,
the larger the fund's AUM (Assets Under Management),
DSIJ.in

This is the nineth article of the knowledge series sponsored by Sundaram Asset Management
Company, which will cover various topics important for your financial well-being.
the lower the expense ratio. Expense ratio is nothing but
the charge that gets deducted from the fund's NAV (Net
Asset Value), resulting in the reduction of returns.
Look at the stint of the fund management team. It is an
important thing to look for. More the stability, more it
justifies the returns generated. For instance, if the fund
manager has changed and the new fund manager has just
completed one year, then looking at the 3-year and 5-year
returns does not make sense.
What to look for in a fact sheet of debt funds?
The factors like debt market outlook, CIO's commentary
and the returns provided by the fund are important.
However, there are three things to look at in the fact sheet
of debt mutual funds. You should look at the debt
securities and instruments in the portfolio along with
their weightages and ensure that the fund is not too much
inclined towards low rated instruments or to a single
group of companies, which are inherently risky.
Another factor to look for in the debt fund is its average
maturity. Average maturity of a debt fund is the weighted
average maturity period of all the holdings in the
portfolio. Debt funds with higher average maturity are
more vulnerable to the rise in the interest rates as they
DSIJ.in
MF Page - 19
may lead to sharp fall in the NAV.
Also, look at the Macaulay duration of the overall
portfolio. The Macaulay duration of the fund is nothing
but the payback period of the debt securities or
instruments in the portfolio. It also measures the
sensitivity of the fund to interest changes. In a scenario
where the interest rates are rising, you must prefer short
duration funds and, conversely, you should go for long
duration funds if the interest rates are falling.
What to look for in a fact sheet of hybrid funds?
If you are invested in a balanced fund, be it conservative
or aggressive, then apart from the standard parameters,
take a look at the equity and debt mix. With the recent
recategorization of mutual funds by SEBI, there are
minimum limits set for the equity and debt portion. Even
then, the mix can be dynamic in nature, so have a closer
look at the historical returns over a longer period of time
to understand how the strategy works.
If you are invested in MIPs (Monthly Income Plans), they
promise you regular income, for which they must have
better liquidity to fulfil the same. So, look at the
companies in which the equity portion is invested along
with the debt securities. In the case of debt securities,
look at the things as explained in what to look for in the
debt funds section.
In case you are invested in an arbitrage funds, then
compare the returns from arbitrage funds with that of
interest that you can earn on FD of bank. Also, have a
closer look at the turnover ratio as a higher turnover ratio
means higher costs and, in turn, lower returns.
So, you are now well-equipped with the concept of the fact
sheet and you also understand what all things to look for in a
fact sheet. This will eventually help you while making decisions
pertaining to investing or exiting from a particular fund.
However, let it be understood that you should not just rely on
the fact sheets for making decisions. The decisions to enter or
exit any mutual fund must be based on the risk profile, financial
plan and any change in the fundamental attribute of the fund.
MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 125
MF Select
MF Page - 20

HDFC Small Cap Fund - Direct Plan (Growth)

Equity: Mid Cap 18.53%
Scheme Category *Expected Return In Next One Year

NIFTY Smallcap 100

`6311.85 Cr 46.52 0.87% (Total Returns Index)
Expense Ratio (%)
AUM (`Cr): 28 Feb., 2019 NAV (`) 08 Mar., 2019 28 Feb., 2019 Benchmark

1% will be charged for redemption Chirag Setalvad

within 365 days
Exit Load Fund Manager
Reason for recommendation TOP 10 Holdings
COMPANY NAME % TO NET ASSETS
The frontline equity market is currently trading at year high
and is already up by around 2 per cent year-to-date. NIIT Technologies Ltd 3.94
Nevertheless, the movement in the mid-cap and small-cap is Sonata Software 3.74
much higher and their indices are up by 9 per cent and 10 per Aurobindo Pharma 3.65
cent, respectively in last one month. One of the reasons for their Chambal Fertilizers & Chemicals 3.19
surge is, after being beaten down in the last one year, they are Balkrishna Industries 3.16
now fairly valued. In addition to that expectation of a stable Sharda Cropchem 3.09
government at the centre, after the election, is allowing NRB Bearing Ltd 2.75
investors to take risky bets. Indian Bank 2.52
Gujarat Fluorochemicals 2.23
In this situation, an investor with a stomach for volatility and
KEC International 2.09
who can take risk, can invest in HDFC Small Cap fund.
Though, we believe it bears a lower risk than its category. The immune to turbulence in any single company. Even the
fund has invested 66 per cent of its corpus in small-caps against weightage of the top three sectors is limited up to 42.75 per cent.
the category average of 76 per cent. The fund has invested in In terms of sector exposure, the fund is well-positioned to
mid-cap stocks more than its peers and hence is likely to be exploit the growth opportunities in the economy as 62 per cent
more stable. What is also good with the fund is that it is of the corpus is exposed to cyclical sectors compared to 57 per
well-diversified and was holding 70 stocks at the end of January cent of categories. Moreover, the presence of some chemical
31, 2019. Not a single company has more than 4 per cent companies along with mid-cap IT companies in the fund's
weightage in the overall corpus of the fund. Therefore, it is portfolio augurs well for the fund and its investors.
8.00%
Monthly Returns
6.00%

4.00%

2.00%

0.00%
Apr-18

Feb-19
Sep-18

Nov-18
Jun-18

Dec-18
Jul-18
Mar-18

Oct-18
Aug-18

Jan-19
May-18

-2.00%

-4.00%

-6.00%

-8.00%

-10.00%
This might not be top ranked fund, however, looking at risk-reward opportunity we recommend this fund. * Expected one year return is based on the assumption that current holdings remain constant.

126 DALAL STREET INVESTMENT JOURNAL I MAR 18 - 31, 2019 DSIJ.in

MF Data Bank
MF page -21

With Ranking

Announcing Version 2.0 of MF Ranking Methodology

I
t is almost one year now that we pioneered a way of
analysing mutual funds that predicts future returns of the
funds based on its underlying portfolio holding. This
future prediction is based on DSIJ's view on each stock
held by the mutual fund scheme and assumes that the
portfolio of the fund is not altered during the tenure. We are
happy to inform you all that this revolutionary way has
predicted the future returns with a fair amount of accuracy and
has been very well accepted by the industry and readers. Over
the period, we have tweaked and refined this model to make it
more accurate. In the short run, we have found that there is
high correlation between our expected returns assigned to the
fund and the actual returns generated by them. We leveraged
our legacy of more than 30 years in understanding the equity to
come out with such innovation. The need for such future-
looking rankings became obvious, especially after market
regulator SEBI came out with the categorisation and
rationalisation of schemes that made the existing rating systems
almost redundant. This is because all the ratings done were
based on past returns; however, with the SEBI circular, huge
churning in portfolio would have made these ratings irrelevant.
We are glad to launch the version 2.0 of our MF ranking with
this Anniversary Issue, wherein we are also introducing a 'risk'
parameter to guide the investor on the scheme's risk. Another
parameter that we will be shortly adding is the turnover of
stocks in the fund. This factor will give an idea of typically how
much the stock in a particular scheme changes during the
course of the year. Hence, version 2.0 ranking of our MF data
brings in three parameters, which together will provide the
much-needed insight into the expectation from a given fund.
First, the 'rank' will give you the potential return of the funds in
the next one year. Second, the 'risk' will give an idea of the
caution that the investor should take before investing in the
funds. Third, the 'turnover' will give you an idea of how much
the expected returns can change from its predicted value. The
larger the turnover, the larger the deviation one can expect.
of a fund in absolute terms. For example, a sectoral fund is
always termed as risky because of its concentrated portfolio.
However, in our analysis, we found that many of the FMCG
funds are more stable and carry lower risk than many of the
large-cap funds. Therefore, if you are a risk-averse investor, you
can always select funds that have consistently shown low risk,
even if it is from the small-cap category.
A fund that is assigned lower risk by us does not mean that it
will give lower returns going ahead. If it is a pure equity fund
and continues to maintain a lower risk portfolio, it is likely to
give better returns in the long term. This is because a fund that
falls less has to recover less to generate positive returns. For
instance, if fund that has fallen by 50% from, say, `100 to `50,
has to recover 100% before generating positive return.
Nonetheless, in the case of a fund whose value has fallen by
25% from `100 to `75, it will have to recover only by 33%
before giving positive returns.
We have bucketed risk in five categories in the following
manner. First, we used the underlying portfolio of the funds to
arrive at their composite risk factor. Once that was calculated,
we bucketed them in the following manner:
n Top 10% volatility score will be 'Low'
n Next 22.5% volatility score will be 'Moderately Low'
n Next 35% volatility score will be 'Moderate'
n Next 22.5% volatility score will be 'Moderately high'
n Next 10% volatility score will be 'High'

What is new about our 'risk' parameter?

Extending our expertise in equity to tame other important
aspect of mutual fund investment, namely, 'risk', we have done
our own assessment and assignment of risk to MF schemes.
Instead of depending on the movement of daily NAVs of MF
schemes, we are using the underlyings of the funds to arrive at
their risks. Going one step ahead and breaking from the league,
instead of analysing risk based on the fund's category, we have
assessed the standing of an individual fund's risk among total
equity-dedicated funds. The importance of such assessment for Risk and return go hand-in-hand. Therefore, by introducing the
an investor is that now he can choose investment based on his risk factor in our ranking, we have finally joined the missing
risk appetite. The problem with the existing system of grading piece necessary for any investor to take decision on mutual
fund's risk based on its category is that you cannot compare risk fund investment.

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 127

MF Data Bank
MF Page - 22

With Ranking

T
he following table lists top-ranked equity funds based on
DSIJ's proprietary research methodology. We have
evaluated each funds underlying portfolio of stocks and
ranked them based on their expected portfolio returns. This way
we are also able to rank newly launched funds that are not rated by
others due to their short duration of existence.
We evaluate all the equity funds based on the changed ratings
of their underlying stocks and the change in their prices. Therefore,
this list is quite dynamic and reflects the best possible return
potential of the funds for the next one year.
You can use this ranking to create your own mutual fund
portfolio. Depending on your risk profile, return expectations and
overall asset allocation, you can add the best performing fund
category to your portfolio. For clarity and to include more funds,
we have not included ‘Direct’ and ‘close-ended’ funds. You can visit
our website (www.dsij.in/mutual-fund) to know the latest ranking
of both ‘Direct’ and ‘Regular’ Funds along with equity-oriented
hybrid and close-ended funds.
This ranking can also be used for reviewing different holdings
in your fund portfolio. Hence, a consistently laggard performer of a
category can be looked at as 'Switch' or 'Exit' advice.
Key To Databank
Category Rank: Category wise ranking as on March 12th 2019
Scheme Name: This is the name of the mutual fund scheme
NAV (`): Net asset value per unit of a mutual fund or an exchange-traded fund
(ETF) on a specific date
AUM (`Crore): This is the total market value of financial assets held by the mutual
fund scheme on a specific date.
Weightage: Large-Cap: This is a percentage of total assets held by a fund in the
large-cap stocks as defined by AMFI for the current period.
Mid-Cap: This is a percentage of total assets held by a fund in mid-cap stocks as
defined by AMFI for the current period.
Small-Cap: This is a percentage of total assets held by a fund in small-cap stocks as
defined by AMFI for the current period.
Total No of Companies: This is a total number of securities held by a mutual fund
scheme at the end of a specific month.
Expenses Ratio: This is the latest expense ratio disclosed by the mutual fund scheme
Return_1Years: This is the past one-year return given by the scheme.
Expected 1-yr return: This is based on our analysis of the portfolio of mutual fund
scheme and their expected growth in the next one year, assuming the underlying
remains the same.
Current Rank: Rank as on March 12th 2019
Previous Rank of February 22nd 2019 is shown under bracket ()
Risk : Risk as on March 12, 2019

Expense Return 1Expected

Category Weightage (%) DSIJ Current
NAV AUM No of
Scheme Name Companies Ratio (%) 1 Years yr return Rank Risk
Rank (`) (` Cr)
Large Cap Mid Cap Small Cap (%) (%) (12 Mar 19)
Equity - Large Cap
1 Franklin India Bluechip Fund - Growth 457.78 7599 86.92 5.63 0.00 38 2.36 -9.04 15.72 75 (134) Moderate
2 Invesco India Largecap Fund 27.89 174 86.49 10.57 1.63 26 2.56 -1.79 15.36 93 (240) Moderate
3 HDFC Top 100 Fund - Regular Plan 478.04 15163 88.85 10.10 0.00 48 2.02 -4.86 15.34 94 (168) Moderately High
4 SBI Blue Chip Fund 37.84 20611 83.50 10.22 0.85 57 3.08 -14.96 15.05 107 (183) Moderately Low
5 DHFL Pramerica Large Cap Fund - Wealth Plan 33.61 362 90.05 2.62 0.44 30 2.15 -9.30 14.64 143 (210) Moderately Low
6 DHFL Pramerica Large Cap Fund 160.74 362 90.05 2.62 0.44 30 2.06 -3.75 14.64 143 (210) Moderately Low
7 Union Largecap Fund 10.41 240 98.45 0.10 0.00 65 2.54 -1.54 14.53 151 (309) Moderate
8 UTI Mastershare 118.76 5577 83.72 11.89 1.65 48 2.66 -2.70 14.52 153 (204) Moderate
9 Reliance Large Cap Fund 34.09 11694 80.64 13.70 5.49 46 2.83 -3.58 14.26 164 (153) Moderately High
10 Baroda Large Cap Fund 13.95 31 87.89 5.31 0.00 30 2.16 2.11 14.22 167 (333) Moderately Low
11 IDFC Large Cap Fund 31.50 392 88.94 1.47 8.84 38 2.26 -0.89 14.09 171 (330) Moderate
12 Kotak Bluechip Fund - Regular Plan 226.87 1330 82.01 14.76 0.67 56 2.44 -1.73 13.94 180 (223) Moderate
13 Tata Large Cap Fund - Regular Plan 210.98 732 92.73 4.36 1.57 25 0.25 2.67 13.87 183 (259) Moderate
Equity - Large & Mid Cap
1 IDFC Core Equity Fund 43.94 2826 54.14 35.19 6.99 71 2.57 -2.97 17.10 36 (142) Moderate
2 Reliance Vision Fund 507.00 2767 58.83 39.43 0.00 29 2.36 -1.38 15.90 67 (45) Moderately High
3 HDFC Growth Opportunities Fund - Regular Plan 110.15 1190 61.17 35.24 3.03 46 2.23 -0.92 15.69 77 (93) Moderately High
4 ICICI Prudential Large & Mid Cap Fund 315.22 2900 52.37 35.80 4.77 55 2.22 -2.15 15.28 98 (126) Moderately Low
5 UTI Core Equity Fund 60.96 878 52.62 35.55 7.85 58 2.29 -1.70 15.15 103 (104) Moderately High
6 Invesco India Growth Opportunities Fund 33.36 1075 59.86 35.61 0.40 42 2.68 -3.72 14.47 157 (120) Moderately High
7 Mirae Asset Emerging Bluechip Fund 51.56 6444 52.49 35.50 11.64 61 2.26 -2.89 14.35 161 (216) Moderately High
8 Canara Robeco Emerging Equities 91.72 4190 51.71 38.73 7.50 61 2.09 -1.75 14.14 170 (189) Moderate
9 Franklin India Equity Advantage Fund 78.61 2593 58.22 35.15 3.43 52 2.22 -0.94 13.99 178 (202) Moderately High
10 DSP Equity Opportunities Fund 214.63 5416 52.18 38.01 7.32 65 2.64 -7.78 13.94 180 (180) Moderate
Others - Index Funds/ETFs
1 Reliance CPSE ETF 25.97 7228 76.92 22.08 0.00 11 2.35 -16.22 20.94 5 (4) High
2 Reliance ETF PSU Bank BeES 332.50 166 81.57 15.89 2.49 12 2.35 -27.49 19.74 10 (19) Moderately High

() There are some blanks in the previous ranking column. This is because these funds were not in our last ranking as they have come into
existence recently.
** These funds are yet to complete one year

Mutual Fund SIPs accounts stood at 2.59 crore at the end of February 2019

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Expense Return 1Expected

Category Weightage (%) DSIJ Current
NAV AUM No of
Scheme Name Companies Ratio (%) 1 Years yr return Rank Risk
Rank (`) (` Cr)
Large Cap Mid Cap Small Cap (%) (%) (12 Mar 19)
3 Kotak PSU Bank ETF 300.06 63 80.88 15.96 2.51 12 2.50 -22.49 19.74 10 (19) Moderately High
4 ICICI Prudential Bharat 22 ETF 36.66 5179 88.90 10.20 0.78 22 2.46 -26.85 18.28 22 (56) Moderate
5 DSP Equal Nifty 50 Fund 9.87 120 99.56 0.00 0.00 50 2.64 -13.01 15.68 79 (177) Moderately High
6 ICICI Prudential Nifty Next 50 Index Fund 24.84 358 86.13 13.23 0.00 50 2.33 -4.59 15.58 81 (65) High
7 UTI Nifty Next 50 Index Fund 9.96 301 86.57 13.35 0.00 50 2.09 1.50 15.56 83 (65) High
8 UTI Nifty Next 50 Exchange Traded Fund 285.24 33 86.62 13.35 0.00 50 2.71 -9.09 15.56 83 (65) High
9 Reliance ETF Junior BeES 289.24 960 85.91 13.83 0.00 50 2.40 -1.40 15.51 88 (65) High
10 IDBI Nifty Junior Index Fund 21.17 48 85.62 13.78 0.00 50 1.94 -0.85 15.50 89 (63) High
11 LIC MF Exchange Traded Fund - Nifty 100 117.22 301 98.08 1.74 0.00 101 2.07 -1.26 14.79 114 (227) Moderate
12 ICICI Prudential Nifty ETF 116.41 1030 99.56 0.00 0.00 50 2.51 -4.31 14.68 120 (261) Moderate
13 ICICI Prudential Nifty Index Fund 107.55 373 99.41 0.00 0.00 50 2.08 -6.94 14.68 120 (261) Moderate
14 LIC MF Exchange Traded Fund - Sensex 385.74 360 99.91 0.00 0.00 31 2.06 -2.27 14.67 123 (281) Moderate
15 HDFC Nifty 50 ETF 1,159.75 268 99.89 0.00 0.00 50 2.55 -8.08 14.66 124 (263) Moderate
16 Reliance ETF Nifty BeES 1,170.30 1022 99.67 0.00 0.00 50 2.22 -0.04 14.66 124 (263) Moderate
17 Franklin India Index Fund - NSE Nifty Plan 88.29 250 98.16 0.00 0.00 50 2.37 0.00 14.66 124 (276) Moderate
18 SBI Nifty Index Fund 95.67 342 98.39 0.00 0.00 50 2.13 -5.49 14.66 124 (263) Moderate
19 Reliance Index Fund - Nifty Plan 18.65 135 99.77 0.00 0.00 50 1.97 -4.12 14.66 124 (263) Moderate
20 SBI ETF Nifty 50 113.75 42708 99.95 0.00 0.00 50 2.78 -10.55 14.66 124 (263) Moderate
Equity - Sectoral/Thematic
1 Reliance Power & Infra Fund 96.70 1338 26.36 12.64 60.04 37 2.28 -25.82 27.27 1 (1) High
2 ICICI Prudential Technology Fund 58.82 484 67.01 7.12 6.36 7 2.88 0.00 24.01 2 (145) High
3 ICICI Prudential India Opportunities Fund 10.48 1361 54.12 9.23 3.40 21 0.01 -21.59 21.40 4 (9) Low
4 Tata Digital India Fund 14.91 422 75.41 2.53 17.44 13 2.62 -18.97 20.38 7 (178) High
5 Invesco India Infrastructure Fund 16.56 37 34.47 27.25 35.48 28 2.42 0.00 19.78 9 (8) Moderate
6 ICICI Prudential Exports and Services Fund 55.41 819 58.25 5.17 9.81 19 2.62 -9.86 19.74 10 (10) Moderately Low
7 SBI PSU Fund 9.97 162 53.51 26.84 11.57 20 2.68 -13.09 19.39 14 (18) High
8 DSP Natural Resources and New Energy Fund 32.14 383 83.13 4.09 2.58 22 2.51 -4.19 19.35 15 (7) High
9 Invesco India PSU Equity Fund 16.75 60 60.64 22.47 16.25 17 2.01 -15.67 18.25 23 (16) High
10 ICICI Prudential Infrastructure Fund 49.66 1187 57.13 7.41 32.12 44 2.38 -17.08 17.70 27 (5) Moderately High
11 Franklin Asian Equity Fund 21.34 121 7.58 5.77 0.64 11 3.02 -25.49 17.63 29 (73) Low
12 IDFC Infrastructure Fund 14.76 867 35.31 15.60 43.13 40 2.24 -15.67 16.73 43 (11) High
13 UTI Transportation and Logistic Fund 97.65 1368 66.42 18.05 10.83 36 2.12 -5.07 16.59 47 (53) Moderate
14 Tata India Consumer Fund 17.25 1407 62.64 21.19 7.28 28 2.46 -23.93 16.24 52 (112) Moderately Low
15 Canara Robeco Infrastructure 43.89 111 60.02 13.02 22.87 28 0.23 -10.44 15.96 63 (40) Moderate
16 SBI Infrastructure Fund 14.64 491 44.35 4.22 47.62 24 2.26 -3.09 15.87 68 (40) High
17 SBI Technology Opportunities Fund 63.76 135 63.54 7.64 17.81 15 2.64 -9.72 15.73 74 (359) High
18 Reliance Banking Fund 268.23 2692 64.98 23.74 9.05 23 2.25 -20.20 15.65 80 (72) Moderately High
19 ICICI Prudential Banking and Financial Services 62.43 2639 59.81 15.52 19.34 31 2.70 -0.81 15.58 81 (85) Moderate
20 Franklin India Opportunities Fund 72.20 568 79.04 6.16 11.72 36 2.36 -15.21 15.55 85 (103) Moderately High
21 UTI Healthcare Fund 84.69 434 52.53 30.26 13.88 22 2.43 -8.96 15.46 90 (171) Moderate
22 Mahindra Rural Bharat & Consumption Yojana 10.14 64 35.91 33.67 15.95 30 2.24 -4.79 15.42 91 (160) Low
23 IDBI Banking & Financial Services Fund 10.03 161 63.26 11.82 7.75 19 2.23 -8.73 15.39 92 (193) Moderately High
24 Mirae Asset Great Consumer Fund 34.28 646 58.87 21.38 15.05 36 2.97 0.00 15.30 96 (147) Moderate
25 SBI Banking & Financial Services Fund 17.18 629 67.52 20.68 6.78 14 2.15 -7.08 14.96 109 (237) Moderate
26 BOI AXA Manufacturing & Infrastructure Fund 15.32 43 24.13 16.34 53.52 51 2.27 0.29 14.71 117 (29) High
27 UTI Banking & Financial Services Fund 95.30 653 77.93 11.40 9.63 25 2.04 2.67 14.68 120 (179) Moderate
28 UTI Infrastructure Fund 51.60 1267 56.79 18.80 23.07 43 2.13 -3.02 14.36 159 (43) Moderately High
29 Franklin India Technology Fund 160.48 246 55.15 6.50 9.29 15 2.16 -4.93 14.36 159 (347) High
30 Reliance Pharma Fund 150.06 2664 63.77 23.16 12.32 19 2.12 -4.69 14.30 163 (299) Moderate
31 HDFC Infrastructure Fund - Regular Plan 16.65 783 43.99 13.85 37.91 41 2.94 -1.34 14.25 166 (58) High
32 UTI India Lifestyle Fund 25.24 256 65.10 21.57 11.16 34 2.26 -7.59 14.00 177 (199) Moderately Low
33 Tata Infrastructure Fund - Regular Plan 53.93 504 48.02 28.59 22.35 36 2.19 -7.64 13.84 184 (25) Moderate
34 Reliance Quant Fund 25.08 26 82.39 15.85 0.00 30 2.38 -0.20 13.80 186 (350) Moderate
35 Baroda Banking and Financial Services Fund 21.64 38 80.78 12.75 0.00 13 2.53 -1.78 13.55 196 (288) Moderately Low
Equity - Focused
1 HDFC Focused 30 Fund - Regular Plan 75.54 426 70.94 8.67 17.08 25 2.34 -29.02 20.83 6 (14) Moderately High

Total amount collected through SIP during February 2019 was `8,095 crore

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 129

MF Data Bank
MF Page - 24

Expense Return 1Expected

Category Weightage (%) DSIJ Current
NAV AUM No of
Scheme Name Companies Ratio (%) 1 Years yr return Rank Risk
Rank (`) (` Cr)
Large Cap Mid Cap Small Cap (%) (%) (12 Mar 19)
2 ICICI Prudential Focused Equity Fund 29.54 612 88.19 4.13 0.00 18 2.28 -26.07 19.33 16 (36) Moderately High
3 IDBI Focused 30 Equity Fund 9.79 272 77.74 3.28 1.11 28 2.88 0.00 16.07 60 (149) Moderately High
4 Principal Focused Multicap Fund 61.86 299 73.90 12.91 11.57 30 2.13 4.49 14.26 164 (191) Moderate
5 Motilal Oswal Focused 25 Fund 20.90 1032 77.11 19.33 1.98 25 2.39 1.27 13.13 225 (245) Moderately High
6 DSP Focus Fund 22.31 2034 90.61 8.16 1.25 30 1.98 -3.72 12.91 239 (207) Moderately Low
Equity - Mid Cap
1 Invesco India Mid Cap Fund 48.36 276 9.39 71.22 14.93 43 2.78 -15.89 19.86 8 (15) Moderate
2 HDFC Mid-Cap Opportunities Fund - Regular Plan 53.82 20539 6.24 68.52 19.34 70 2.05 -8.19 16.11 58 (39) Moderate
3 BNP Paribas Mid Cap Fund 31.12 701 9.01 67.60 18.98 52 2.72 -11.24 15.84 69 (98) Moderately High
4 UTI Mid Cap Fund 99.64 3589 10.28 66.88 20.43 64 2.02 -17.51 15.78 71 (101) Moderately High
5 ICICI Prudential MidCap Fund 94.15 1513 8.21 65.36 23.64 66 2.21 -8.75 14.91 113 (136) Moderate
6 IDBI Midcap Fund 10.86 217 14.59 67.56 6.37 47 2.32 -15.31 14.54 150 (86) High
7 Reliance Growth Fund 1,088.26 6361 14.43 65.57 18.40 86 2.10 -3.49 13.92 182 (182) Moderately High
8 Motilal Oswal Midcap 30 Fund 24.65 1282 24.84 72.83 0.50 27 2.07 -4.71 13.52 198 (91) Moderately High
9 SBI Magnum Midcap Fund 72.90 3523 3.26 72.18 21.18 48 1.42 -1.82 13.34 209 (76) Moderate
10 Baroda Mid-Cap Fund 8.98 45 2.35 75.62 13.86 34 0.99 3.68 13.16 223 (218) Moderate
Equity - Small Cap
1 Invesco India Smallcap Fund 10.39 182 3.30 24.25 65.86 40 2.37 -25.74 22.00 3 (2) Moderately High
2 HDFC Small Cap Fund - Regular Plan 43.67 6312 8.79 16.55 67.83 72 2.17 -16.58 17.01 37 (30) High
3 HSBC Small Cap Equity Fund 49.47 755 0.00 20.79 75.76 69 2.00 -5.51 16.98 38 (22) High
4 Tata Small Cap Fund 10.40 241 0.00 3.70 65.57 26 2.32 -17.53 16.59 47 (26) Moderately Low
5 Franklin India Smaller Companies Fund 53.60 6777 16.34 12.80 64.52 75 2.66 -19.70 14.94 111 (78) Moderately High
6 Reliance Small Cap Fund 39.84 7245 12.24 7.94 76.12 116 2.70 -4.25 14.64 143 (90) High
7 ICICI Prudential Smallcap Fund 24.19 174 0.00 2.80 91.23 48 2.07 -12.11 14.43 158 (83) High
Hybrid - Aggressive
1 Reliance Equity Hybrid Fund 53.35 12283 68.08 6.32 5.57 56 2.79 -18.83 18.35 21 (38) Moderate
2 IDFC Hybrid Equity Fund 11.25 928 45.91 13.77 11.58 60 2.67 -5.86 16.72 44 (105) Low
3 Principal Hybrid Equity Fund 76.29 1638 56.41 9.34 10.61 68 2.18 -17.22 16.72 44 (117) Moderate
4 HDFC Hybrid Equity Fund - Regular Plan 52.45 21404 51.67 14.79 8.24 87 2.19 -14.26 16.50 50 (116) Moderate
5 Tata Hybrid Equity Fund - Regular Plan 205.75 4589 63.17 8.53 5.25 36 2.61 -18.65 16.37 51 () Moderate
6 Mirae Asset Hybrid Equity Fund 14.36 1495 59.10 10.09 5.17 64 2.01 -11.48 16.18 55 (143) Moderately Low
7 BOI AXA Mid & Small Cap Equity & Debt Fund 12.78 405 0.00 40.14 35.08 55 2.43 0.00 15.16 102 (35) Moderately Low
8 DHFL Pramerica Hybrid Equity Fund 66.22 184 67.85 5.36 1.45 31 1.99 -3.05 14.69 119 (184) Moderately Low
9 Franklin India Equity Hybrid Fund 117.22 1914 57.47 9.22 1.48 43 2.59 -22.46 14.48 156 (213) Moderate
10 Kotak Equity Hybrid - Regular Plan 23.85 1601 51.65 16.43 11.34 56 2.66 -6.28 14.04 175 (162) Moderate
Equity - Multi Cap
1 Invesco India Multicap Fund 46.12 730 46.49 26.76 23.69 41 2.44 -16.94 18.11 25 (42) Moderately High
2 Franklin India Equity Fund 583.57 11155 73.06 16.98 6.61 56 2.33 -9.82 16.83 42 (140) Moderately High
3 Parag Parikh Long Term Equity Fund 24.58 1619 42.14 10.52 12.96 25 0.01 -6.49 16.19 54 (235) Moderately Low
4 Principal Multi Cap Growth Fund 139.24 808 62.27 12.67 19.39 65 2.47 -7.91 16.16 56 (82) Moderately High
5 ICICI Prudential Multicap Fund 288.55 3103 72.51 11.12 8.62 67 0.85 -11.16 16.02 61 (71) Moderate
6 Mirae Asset India Equity Fund 49.46 10560 84.06 9.03 2.75 61 2.03 -15.60 15.80 70 (188) Moderate
7 IDFC Focused Equity Fund 35.77 1566 63.99 12.77 21.26 29 2.12 -23.70 15.75 72 (200) Moderate
8 Kotak Standard Multicap Fund - Regular Plan 34.12 21638 73.37 16.72 1.98 55 2.14 -12.72 15.52 87 (134) Moderate
9 HDFC Equity Fund - Regular Plan 645.85 20465 82.29 11.07 6.07 46 2.27 -0.15 15.12 105 (145) Moderately High
10 HSBC Multi Cap Equity Fund 84.57 553 66.58 15.20 18.01 52 2.59 -8.10 15.06 106 (121) High
11 Baroda Multi Cap Fund 94.84 741 63.15 27.78 3.99 45 2.46 -13.15 14.72 116 (248) Moderately Low
12 BNP Paribas Multi Cap Fund 44.98 743 68.47 7.66 18.10 44 2.05 1.93 14.59 148 (163) Moderate
13 Union Multi Cap 18.87 235 79.23 8.43 9.50 61 2.17 -1.73 14.50 154 (195) Moderately High
14 LIC MF Multi Cap Fund 45.01 262 75.30 9.63 5.48 54 2.47 10.82 13.73 191 (234) Moderate
15 Essel Multi Cap Fund 10.30 167 66.74 13.53 14.42 51 2.66 0.48 13.63 194 (310) Moderate
16 Tata Multicap Fund 10.19 1425 69.12 18.30 2.39 36 0.30 3.99 13.24 218 (257) Moderately Low
Equity - Value/Contra
1 ICICI Prudential Value Discovery Fund 141.82 15810 67.44 10.89 3.31 43 2.17 -1.21 19.64 13 (48) Moderately High
2 Quantum Long Term Equity Value Fund - Regular Plan 54.78 916 77.82 14.26 1.99 27 2.86 -22.65 19.21 18 (79) Moderately High
3 IDFC Sterling Value Fund 50.96 2873 13.88 38.27 40.92 78 2.14 -3.95 18.12 24 (23) Moderately High

Average Assets Under Management of Indian Mutual Fund Industry for the month of February 2019
stood at `24.24 lakh crore

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Expense Return 1Expected

Category Weightage (%) DSIJ Current
NAV AUM No of
Scheme Name Companies Ratio (%) 1 Years yr return Rank Risk
Rank (`) (` Cr)
Large Cap Mid Cap Small Cap (%) (%) (12 Mar 19)
4 Union Value Discovery Fund 10.46 148 73.52 8.26 16.78 60 2.67 0.00 18.02 26 (61) Moderate
5 Invesco India Contra Fund 47.03 3115 67.55 18.03 13.01 45 2.71 0.00 17.18 34 (53) Moderately High
6 HDFC Capital Builder Value Fund - Regular Plan 290.48 4157 65.63 9.19 21.20 59 2.57 -14.86 16.96 40 (75) Moderate
7 IDBI Long Term Value Fund 10.29 162 40.85 6.91 4.36 27 2.73 -18.40 16.84 41 (111) Moderate
8 SBI Contra Fund 107.64 1505 37.02 19.21 28.70 43 2.01 -10.66 15.31 95 (50) Moderately High
9 Indiabulls Value Discovery Fund 11.63 39 6.59 20.57 17.93 16 2.43 0.57 15.15 103 (21) High
Equity - ELSS
1 Quantum Tax Saving Fund - Regular Plan 54.23 74 77.59 14.32 1.99 27 2.75 -17.42 19.25 17 (77) Moderately High
2 IDFC Tax Advantage (ELSS) Fund 54.86 1710 46.95 21.65 24.35 72 2.85 -38.02 17.53 33 (57) Moderate
3 HDFC TaxSaver - Regular Plan 507.30 6799 83.44 7.03 5.79 43 2.00 -2.87 16.71 46 (62) Moderate
4 Principal Tax Savings Fund 203.66 371 63.36 13.11 20.38 64 2.85 0.00 16.13 57 (81) Moderately High
5 ICICI Prudential Long Term Equity Fund 366.21 5547 71.97 16.79 7.16 48 1.06 0.00 15.99 62 (102) Moderately Low
6 Invesco India Tax Plan 49.45 696 67.38 18.87 10.28 39 1.46 -0.34 15.75 72 (154) Moderate
7 Mirae Asset Tax Saver Fund 17.09 1381 75.35 14.44 8.58 57 2.61 -25.37 15.69 77 (196) Moderate
8 HSBC Tax Saver Equity Fund 35.87 157 60.78 15.91 22.17 40 2.16 -10.43 15.30 96 (73) Moderately High
9 Baroda ELSS 96 43.20 142 60.15 26.78 4.76 36 2.21 -0.77 15.21 100 (249) Moderately Low
10 UTI Long Term Equity Fund 85.36 1056 59.39 29.78 9.26 59 2.29 -1.51 15.05 107 (141) Moderately High
11 Indiabulls Tax Savings Fund 9.31 73 67.64 7.42 2.42 27 2.99 -14.49 14.93 112 (306) Moderate
12 Franklin India Taxshield 555.40 3666 78.27 13.55 3.44 53 2.02 -8.47 14.57 149 (215) Moderate
13 Reliance Tax Saver Fund 54.29 9614 61.50 19.88 18.48 52 1.97 -2.11 14.15 169 (88) Moderately High
14 Union Tax Saver Scheme 23.44 227 79.05 10.21 7.79 66 2.93 -4.24 13.84 184 (239) Moderate
15 DSP Tax Saver Fund 46.43 4740 72.27 14.62 11.57 69 2.33 -0.44 13.73 191 (233) Moderate
16 Motilal Oswal Long Term Equity Fund 16.79 1175 74.03 17.61 4.16 34 2.69 -4.20 13.70 193 (109) Moderately High
17 LIC MF Tax Plan 64.22 198 57.95 22.81 6.75 42 2.57 0.00 13.50 203 (231) Moderate
Hybrid - Equity Savings
1 Principal Equity Savings Fund (Growth Accum) 35.48 70 59.08 9.65 5.66 48 2.18 -11.92 17.60 30 () Moderately Low
2 Mirae Asset Equity Savings Fund 10.18 37 71.15 4.67 0.36 51 2.98 -14.86 17.17 35 (69) Low
3 HDFC Equity Savings Fund - Regular Plan 36.06 5979 63.39 10.62 5.71 154 2.14 -11.23 16.98 38 (94) Moderately Low
4 ICICI Prudential Equity Savings Fund 13.56 1921 66.95 8.73 4.19 68 2.44 -14.40 16.54 49 (155) Low
5 UTI Equity Savings Fund 10.05 342 61.49 13.41 3.40 67 2.44 -17.74 15.92 66 (167) Moderate
6 Tata Equity Savings Fund - Regular Plan - Growth 32.17 151 50.43 12.42 4.99 44 1.98 0.23 14.76 115 (212) Moderately Low
7 Reliance Equity Savings Fund 12.59 2015 56.66 8.59 6.02 71 2.40 -2.82 14.62 146 (132) Moderately Low
8 AXIS Equity Saver Fund 12.59 736 53.85 20.50 2.25 66 2.30 0.60 14.49 155 (253) Low
9 Union Equity Savings Fund 10.30 272 50.14 18.49 4.69 99 2.19 0.05 14.17 168 (324) Low
Hybrid - Dynamic Asset Allocation/Balanced Advantage
1 IDFC Dynamic Equity Fund 13.03 1147 56.37 18.53 6.90 65 0.78 -11.63 16.11 58 (168) Low
2 Tata Balanced Advantage Fund 10.08 669 59.03 11.09 0.00 42 2.24 -12.49 15.55 85 () Low
3 Kotak Balanced Advantage Fund 10.23 2485 49.26 14.35 5.43 146 2.93 -4.99 15.26 99 (95) Moderate
4 HDFC Balanced Advantage Fund - Regular Plan 192.39 37395 73.63 12.32 7.46 86 2.06 -11.20 15.19 101 (122) Moderately High
5 Union Balanced Advantage Fund 10.37 503 69.53 11.05 0.98 82 2.16 -10.01 14.70 118 (245) Low
6 Axis Dynamic Equity Fund 10.80 2339 54.39 12.16 2.85 105 2.27 -3.13 13.59 195 (320) Low
Solution Oriented
1 HDFC Retire. Savings Fund - Equity - Reg. Plan 16.68 606 42.62 13.65 25.09 60 0.54 -13.51 19.18 19 (44) Moderately Low
2 ICICI Prudential Child Care - Gift Fund 136.97 601 58.52 11.71 4.31 23 2.20 -18.56 17.69 28 (107) Moderately Low
3 Reliance Retir. Fund - Wealth Creation Scheme 12.98 1384 75.21 9.23 9.09 58 2.11 -16.13 17.55 31 (59) Moderate
4 HDFC Retire. Savings Fund - Hybrid Equity - Reg. Plan 16.35 228 37.36 9.98 23.22 55 2.81 -10.47 15.96 63 (150) Moderately Low
5 UTI CCF Investment Plan 36.58 263 69.64 17.28 6.86 63 1.82 0.00 15.96 63 (112) Moderately High
6 HDFC Childrens Gift Fund - Regular Plan 119.08 2531 43.33 17.71 12.68 63 1.97 -3.76 15.70 76 (137) Moderate
Hybrid - Multi Asset Allocation
1 ICICI Prudential Multi Asset Fund 261.35 10939 61.18 6.52 7.11 73 2.09 -16.30 17.54 32 (24) Low
Equity - Dividend Yield
1 ICICI Prudential Dividend Yield Equity Fund 16.26 178 49.73 15.62 28.73 32 0.49 -13.44 19.09 20 (51) Moderate
2 Templeton India Equity Income Fund 45.89 940 41.80 9.44 14.13 36 2.81 0.00 14.96 109 (255) Moderately Low
3 UTI Dividend Yield Fund 64.69 2455 65.89 21.50 11.12 55 2.88 0.00 14.53 151 (196) Moderate

All the NAV figures are for date March 12, 2019. Trailing returns are also calculated for the same date. AUM, weightage of a stocks, number
of companies and expense ratio are for the period ending Feb. 2019. All the raw data is provided by Dion Global Solutions Ltd

DSIJ.in MAR 18 - 31, 2019 I DALAL STREET INVESTMENT JOURNAL 131