2018-01-20 Dalal Street Investment Journal

CONTENTS Vol. 33 No.
04 • JAN 22 - FEB 4, 2018
42 Cover Story
Recommendations
09 Choice Scrip
How To Profit 10 Low Priced Scrip
From The Budget 11 Hot Chips
14 Analysis
06
Regulars
Editor’s Keyboard
HEG Limited 07 Company Index
Riding piggyback on demand for power and steel 08 Market View
12 Technicals
38
58 Call Tracker
62 Query Board
Special Report
65 Reviews
66 Kerbside
Subscribers can access
the complete databank
consisting of more than
3500 companies on our
website www.DSIJ.in
17
Communication Feature sections
Defence Sector are advertorials provided by the

company & carried on “as is” basis.
4 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

Bottom-Up Stock-Specific
Approach Highly Recommended
N
othing can get more exciting than equity markets in India awaiting announcement of the
Union Budget. While the upcoming Budget will be the last full-fledged budget of the Modi
government during the current term, I believe the Union budget to be presented on the first
day of the next month will be nothing but a positive budget for the economy. There are talks amongst
investors that the dividend distribution tax may be done away with in this budget, while the corporate
honchos are keeping their fingers crossed on the rationalisation of corporate taxes. Some fear that the
LTCG may be reintroduced or there may be some minor tweaks in the same to augment revenues for
the government.
One must understand the priorities of the current government to be able to correctly estimate the
announcements in the budget. In my view, the priority for the current government is ‘Economic
Growth’. Agriculture sector is a priority, so is employment generation. Even if Union Finance Minister
Arun Jaitley prefers to support agriculture sector, which he will, it will indirectly boost the overall
growth of the country as the agriculture sector has so far not contributed incrementally to India’s GDP
growth over the last four years. The provisioning of
funds for the agriculture sector in my view will be
crucial in this budget. Apart from the quantum of fund,
what I will be delighted to know is how the government
is going to ensure fair prices for the agriculture produce
of the farmers. Nothing can be more sweeter than the
agriculture sector contributing positively and
incrementally to India’s overall GDP growth. Expect
some big bang announcements for the agriculture sector.
This issue, we have a special feature covering CSR

(Corporate Social Responsibility) activities of corporates
extensively. Indeed, it is interesting to know how listed
companies are contributing to the social and economic
development of the society at large by their unique
initiatives and perspectives. Know what is CSR and how corporates are spending their money on
social causes. Learn everything about the most trending topic in our special issue.
In our cover story, we have extensively discussed various steps that may be taken by the current
government to improve the economic health of the country. Our expectations from Budget-2018 are
explained in detail. We have come up with four recommendation which we believe will generate
decent returns over a one year period for the investors. The markets, no doubt, will take direction from
the Budget announcements. However, investors who stick to the bottom-up approach will find
themselves safe and wealthy. My suggestion for investors with temperament for long term investing is
that they can find opportunities in the cement industry. Cement is safe investment over the long run,
as well as PSU banks. Investors will get a chance to rejig their portfolio in this budget and a lot will
depend on the announcements and incentives given to specific sectors. However, cement companies
and banks should not only form a part of your portfolio, but a higher allocation of 10 per cent to each
sector is highly recommended.
The markets are getting expensive, but many stocks are still not expensive. There are plenty of
opportunities for those who are willing to dig deeper into financials and valuations of the companies.
We are more than happy to assist our investors in this endeavour and I am sure we will come up with
some exciting opportunities in 2018 when it comes to identifying quality stocks with good growth
potential.
Stay Tuned, Stay Invested and Stay Wealthy !
V B PADODE
Editor-in-Chief

facebook.com/DSIJin twitter.com/DSIJ
Vol. 33. No. 04 • JAN 22 - FEB4, 2018
Founder & Editor-In-Chief Marketing & Sales enquiry@dsij.in

www.dsij.in/apps.aspx
linkedin.com/in/DalalStreetInvestmentJournal
V B Padode G M - Marketing & Sales
Chief Copy Editor Farid Khan
Prakash Patil
Assistant Editor
Yogesh Supekar
Mumbai:
Anand Chinchole
(Manager-Media Sales)
Sensex @ 35000
S
Delhi: ensex is at 35,000 and I do not know if I should celebrate or should worry that
Research Atul Verma
Neerja Agarwal (Sr. Manager - Sales & Marketing) markets may fall. Please guide.
(Asst. VP – Research) - Chetan Tupe
Lokesh Sharma
Shashikant (Sr. Manager - Media Sales)
(Asst. VP – Research) Bengaluru: Editor Responds: Sensex at 35,000 indicates record highs for the market—that is it! It
Karan Bhojwani N K Vishwanatha does not indicate that markets will fall from these levels. Most important thing for the
(Manager Research) (Sr. Manager - Sales) investors is to maintain a stock-specific approach to investing, wherein the whole idea is to
Bhagyashree Vivarekar Chennai: stick to fundamentally strong stocks. Don’t look at market (Sensex) per se, but look at
(Sr. Research Analyst) P V Bhaskar stocks that you want to include in your portfolio. You will be surprised that even at these
Apurva Joshi (Sr. Manager - Media Sales)
levels there are plenty of opportunities for investment.
(Sr. Research Associate) Mutual Funds :
Graphics Hemant Rustagi Think long term, stay diversified and ignore market levels.
Vipin Bendale Tax:
Jayesh Dadia
Subscription & Customer Service
Utkarsh Sawale
Arvind Manor
Recommendations
DSIJ Private Limited Company/Scheme Reco. Price (`) Column Page No
Managing Director Ambuja Cement l Buy 276.60 Cover Story 48
Rajesh V Padode
Bharat Forge l Buy 734.95 Kerbside 66
For Customer Service
Compucom Software l Hold 17.00 QueryBoard 63
020-49072626 OR  service@DSIJ.in
Mumbai Office
Dwarikesh Sugar l Hold 47.10 QueryBoard 64
419-A, 4th Floor, Arun Chambers, Tardeo, Next to AC Market Gati l Buy 147.90 Kerbside 66
Mumbai - 400034 022-43476012/16/17
HEG Limited l Hold 2923.50 Analysis 15
Pune Office
C-305, 3rd Floor, Trade Center, North Main Road, Near Axis Bank, Icici Prudential Life Insurance l Buy 419.00 Technicals 13
Opposite Lane no. 6, Koregaon Park, Pune - 411001
020-49072600 IFB Industries l Buy 1460.00 Choice Scrip 9
Bengaluru Kakatiya Cement l Buy 404.55 Technicals 13
Boston Financial Advisory Group, # 54,
3rd Floor, 13th Main, 17th Cross, HSR Layout,
Kesoram Industries l Hold 156.75 QueryBoard 64
Bengaluru - 560102 080-25724800/600 Kiri Industries l Hold 622.85 QueryBoard 63
Chennai 9445546165 Man Infra Construction l Buy 69.15 Hot Chips 11
Delhi 8800978622 Marksans Pharma l Buy 46.65 Hot Chips 11
To advertise, mail us on ads@dsij.in MIRC Electronics l Buy 50.70 Low Priced Scrip 10
Printer and Publisher: Nitin Sawant, Editor: V B Padode for DSIJ Pvt Ltd. Reliance Naval & EnGg. l Exit 53.25 Reviews 65
on behalf of Achievements Merchandise Pvt Ltd. Printed at Kala Jyothi
Process Pvt. Ltd. Plot No.: W-17&18, M.I.D.C. Industrial Area, Taloja,
Sil Investments l Buy 492.60 QueryBoard 62
Dist. Raigad, Navi Mmbai. - 410 206. and published from 419-A, 4th Sparc Systems l Exit 3.17 QueryBoard 62
Floor, Arun Chambers, Tardeo, Next to AC Market, Mumbai - 400034 
All rights reserved.  While all efforts are made to ensure that the Swelect Energy l Buy 481.00 Cover Story 49
information published is correct and up-to-date, Dalal Street Investment
Journal holds no responsibility for any errors that might occur. All Tata Sponge Iron l BP 1175.70 Reviews 65
material contained herein is based on fundamental and technical analysis
and other in-house methods, which though reliable, are not infallible. The Thomas Cook l Buy 258.00 Kerbside 66
information given in the magazine is of an advisory nature. Readers are
advised to consult experts before taking any investment decision and Dalal Titagarh Wagons l Buy 172.40 Kerbside 66
Street Journal holds no responsibility for any losses that may arise due to
investment decisions made on the basis of information given within the TPL Plastech l Buy 691.00 Cover Story 49
magazine. No reproduction is permitted in whole or part without written
consent from Dalal Street Journal  All disputes are subject to the ZEE Entertainment l Buy 614.20 Cover Story 48
exclusive jurisdiction of competent courts and forums in Mumbai only. 
Dalal Street Investment Journal is a member of INS/ABCs. BP - Book Profit • BPP - Book Partial Profits • BL - Book Loss
DSIJ.in JAN 22 - FEB 4, 2018 I DALAL STREET INVESTMENT JOURNAL 7

Market Watch The markets will be
keenly watching the
IT Stocks Help Sensex Touch Record Highs Budget as it is will set the
tone for the markets.
S
ensex managed to make record period under consideration, thus
Globally, the equity rally
highs this week and touched its continuing its dream run in 2018. BSE does not seem to have
all-time high at 34,963.69 on Small-cap index was up by 3.98 per cent.
Monday, i.e. January 15 It has paused and there are no
been an extremely bullish On the sectoral front. the previous two
two-week period for the equity markets weeks belonged to metal, realty and IT signs of panic yet in the
globally, with Dow Jones Industrial sectors. The Metal index was up by 6.86 markets in spite of high
Average (DJIA) index inching up by more per cent, followed by the Realty index,
than 4 per cent and S&P 500 index which was up 5.68 per cent and the IT equity valuations.
following suit. It was a not a relatively sector index, which gained 3.80 per cent.
great period for the global technology Bankex was not amongst the leaders Institutional investors were net buyers
giants as indicated by Nasdaq, which even as the index gained 2.87 per cent. in the market with FII buying into the
slipped by more than 2 per cent even as The FMCG index was up by 1.33 per Indian markets to the tune of Rs 480.29
most of the other global indices managed cent and the Power index remained flat, crore and DIIs buying stocks worth Rs
to close in the green. Hang Seng was the but managed to close in the green by 0.64 2573.70 crore.
only other global index which managed per cent. The auto companies saw some
to beat the DJIA index in the past profit-booking in the past couple of The past couple of weeks also saw
two-week period. Hang Seng was up by weeks, which pulled the index down by couple of IPOs garnering funds from
4.99 per cent. nearly 1.10 per cent even when all the investors, viz., Apollo Micro Systems
other sectoral indices closed in the green. and New Generation Power. Both the
The European indices closed in the green, The Mid-cap index gained 1.64 per cent. IPOs received good investor response.
While small-caps continue to surprise
with the price gains, the large-cap IT
companies such as TCS and Infosys
have helped push up the key benchmark
indices. DS
29th Dec 12th Jan Gain/Loss

Indices
2017 2018 (%)
Dow Jones Ind 24,719.22 25,803.19 4.39

S&P 500 2,673.61 2,786.24 4.21
NASDAQ 6,903.39 6,758.54 -2.10
FTSE 100 7,696.80 7,787.24 1.18
DAX 12,917.64 13,230.78 2.42
CAC 40 5,312.55 5,517.06 3.85
Hang Seng 29,919.15 31,412.54 4.99
Nikkei 22,783.98 23,653.82 3.82
Shanghai 3,307.17 3,428.94 3.68
with the CAC 40 leading the way, up by Performance Of Indices Net Investment In Equity Markets (`/Cr)
3.85 per cent, followed by DAX which 01st Jan 15th Jan Gain/Loss Date FIIs DIIs
was up by 2.42 per cent and FTSE which Indices
2018 2018 (%)
was up 1.18 per cent. Japanese indices, in 02-Jan 522.74 64.7
SENSEX 33812.75 34,843.51 3.05
line with the global indices, inched up by Nifty 10,435.55 10741.55 2.93
03-Jan 96.31 -269.2
3.82 per cent. Mid-Cap 17,835.83 18,128.88 1.64 04-Jan 212.05 325.24
Small-Cap 19,279.96 20,046.90 3.98 05-Jan 581.43 243.13
The major Indian benchmark indices Auto 26,542.64 26,250.43 -1.10 08-Jan 692.83 -206.3
underperformed their global peers Bankex 28,639.17 29,462.43 2.87 09-Jan -303.94 522.9
marginally in the past two weeks, with FMCG 10,664.49 10,806.70 1.33 10-Jan -572.26 600.24
Sensex and Nifty gaining by 3.05 per cent IT 11,216.18 11,642.81 3.80 11-Jan -623.63 770.02
and 2.93 per cent, respectively. The Metal 14,861.39 15,880.55 6.86 12-Jan -158.16 696.25
Small-cap index managed to outperform Power 2,400.41 2,415.77 0.64 15-Jan 32.92 -173.28
both the key benchmark indices for the Realty 2,617.74 2,766.51 5.68 Total 480.29 2,573.70

Recommendations Equity
IFB Industries On the financial front, the net sales of the
company increased by 37.20 per cent to
COOL COMPANY TO GROW WITH

`602.78 crore in the second quarter of
FY18, as against `439.35 crore in the
same quarter of the previous year. This
was on the back of healthy 41 per cent
YoY growth in the home appliances
division and 19 per cent YoY growth in
the fine blanking division. The company’s
HERE IS WHY PBDT increased 81.13 per cent to
Robust financials `63.56 crore in the second quarter of
FY18 on a yearly basis. The company’s
New product launches net profit also jumped by 105.45 per cent
Focus on domestic manufacturing to `36.57 crore in Q2FY18, as against a
I
net profit of `17.8 crore in the second
quarter of the previous year.
FB Industries, started its operations
in India in collaboration with On an annual basis, the company’s net
Hienrich Schmid AG of sales increased 15.97 per cent to
Switzerland in 1974. The company `1740.65 crore in FY2017 on a year-on-
operates in two divisions, fine year basis. The company’s PBDT
blanked components. and appliances. The increased 30.93 per cent to `105.44 crore
fine blanking division has manufacturing in FY17 as against `80.53 crore in the
facility located at Kolkata and Bangalore, Best of LAST ONE Year previous fiscal. The net profit of the
whereas the appliances division has a Name of Reco CMP Gain company rose 62.53 per cent to `50.97
manufacturing facility in Goa. Company Price (`) (`) (%) crore in FY17, as against `31.36 crore in
Hi Tech Pipes 133.00 371.00 178.95 the previous fiscal.
The fine blanking division mainly caters to Elgi Equipments 177.00 296.00 67.23
the automobile sector, covering both the Gillette India 4264.00 6667.00 56.36 On the valuation front, the company has
2-wheeler and 4-wheeler segments. IFB is Tata Sponge Iron 806.00 1175.00 45.78
a PE ratio of 96.70x as against its peer
strengthening the supply chain to cater to V-Guard Industries (70.90x). The
Aarti Industries 779.00 1122.00 44.03
the expected increase in automotive company’s return on equity (RoE) and
demand in the coming quarters. The (Closing price as of Jan 16, 2018) return on capital employed (RoCE) stood
company is also focusing on increasing its at 11.22 per cent and 14.80 per cent,
business in non-auto segments like increasing its capacity in top load washing respectively. The company, with a
electrical, railways, defence, etc. machines, while new product launches debt-to-equity ratio of 0.06x is virtually
would increase capex in the home debt-free. The Q2 results of the company
The appliances division includes products appliance segment. exceeded expectations and recorded
like washing machines, microwave ovens, highest quarterly growth in the last nine
dish washers, air conditioners, etc. for The company is also focusing on years on the back of increasing share of
domestic and industrial appliances localising manufacturing within India to domestic appliances, healthy operating
segment. The outlook for the appliances reduce on high import costs. This will leverage and prudent cost management.
division remains positive on the back of result in a significant portion of electronic Also, the company is introducing new
strong customer demand. Also, the controller imports being substituted by product range which would drive growth
company plans to launch new products localised production in the ongoing going forward. We recommend our
and reduce material costs. IFB is quarter itself. reader-investors to BUY the stock. DS
CMP
Monthly Stock Market Returns Shareholding Pattern Last Five Quarters - Standalone (`/Cr)
BSE Code: 505726 (`) December 2017 Particulars Sep '17 Jun '17 Mar '17 Dec '16 Sep '16
CMP: `1460 FV: `10
BSE Volume: 500 Promoters 74.96 Total Income 602.78 531.02 429.17 454.44 481.81
Date:16/01/2018
FII 25.04 Other Income 3.34 3.42 3.38 2.71 4.41
Operating Profit 64.66 24.34 13.25 32.53 38.56
DII 0
Interest 1.1 1.13 0.81 0.89 1.36
Other 0 Net Profit 36.57 7.38 2.68 15.58 19.18
Total 100 Equity 41.28 41.28 41.28 41.28 41.28

Recommendations Equity
MIRC Electronics and has recently tied up with Flipkart
and Amazon for making their products
available online.
RISING DEMAND TO FUEL FUTURE GROWTH On the financial front, the company’s
revenue increased by 29.13 per cent to
FY18, as against `155.73 crore in the
same quarter last fiscal. The PBIDT of
HERE IS WHY the company rose 158.54 per cent to
Turnaround in financials FY18, as against `7.26 crore in the same
Rising rural demand quarter of the previous fiscal. The net
profit of the company also increased to
Innovative product launches
M
`12.04 crore, as against a loss of `9.92
crore during the period under
IRC Electronics is in consideration.
the business of
manufacturing and On an annual basis, the company posted
marketing electronics PRICED SCRIP a drop in its revenue by 2.64 per cent to
goods under the brand `746.37 crore in FY17, as against
names Onida and IGO. It serves various `766.62 crore in the previous fiscal.
areas of consumer appliances such as Best of LAST ONE Year However, PBIDT of the company
LED televisions, air conditioners, Name of Reco CMP Gain recorded a significant increase from a
washing machines, microwave ovens, Company Price (`) (`) (%) negative `0.74 crore in FY16 to `34.55
DVD and home theatre systems, mobile Himadri Speciality Chemical 61.50 183.00 197.56 crore in FY17. The net loss of the
phones, projector systems etc. MIRC is Gujarat Ambuja Exports 92.25 261.50 183.47 company also declined to `5.68 crore in
currently working with about 4,000 Gufic Biosciences 50.70 124.00 144.58 FY17, as compared to a net loss of
dealers across India and plans to further Virinchi 61.45 136.00 121.32
`27.02 crore in FY16.
increase this number.
Purvankara 73.20 157.00 114.48
On the valuation front, the TTM PE of
(Closing price as of Jan 16, 2018)
The company's home appliances market the company stood at 64.71x, as against
is growing faster than other segments, the industry PE of 44.15x. Meanwhile, its
contributing 9 per cent to the revenues. has recently expanded its television peers Dixon Technologies and
The company has come up with 15 new product line-up with the launch of Onida Honeywell Automation posted a TTM
models of washing machines and is KY Super Thunder. PE of 93.16x and 76.14x, respectively.
targeting 6 per cent market share in this
segment, which has only 0.5 per cent Recently, the company has automated The stock is witnessing a turnaround in
penetration in rural markets and is its plant, which has helped the company financials due to rising rural demand
expected to grow at 10-12 per cent to focus on higher margin products, and innovative product launches. MIRC
during the year. The company has also which has resulted in good profitability in is targeting rural India with launch of
pioneered inverter ACs to grab market the last one year. The reduction in low cost LED entry level TVs, washing
share of the fast-growing AC market. manpower is said to have saved the machines, etc. The company is looking
company `15-20 crore. to grow at 20-25 per cent for the next
The company is looking at 60-65 per five years. We recommend our reader-
cent growth in LED TV sales in FY18, as The company has garnered about 15 per investors to BUY the stock.
compared to `308 crore sales in FY17. It cent of its revenues from modern retail DS
CMP
Monthly Stock Market Returns Shareholding Pattern Last Five Quarters - Standalone (`/Cr)
(`)
BSE Code: 500279 December 2017 Particulars Sep'17 Jun'17 Mar'17 Dec'16 Sep'16
CMP: `50.7 FV: `1
BSE Volume: 277589 Promoters 57.71 Total Income 201.09 215.54 210.35 139.05 155.73
Date: 16/01/2018 Other Income 0.5 2.16 3.64 0.36 1.6
FII 42.29
Operating Profit 19.27 11.9 18.71 -0.43 8.86
DII --
Interest 4.8 4.99 4.67 6.89 6.5
Public 0 Net Profit 12.04 4.5 12.23 -9.73 -9.92
Total 100 Equity 21.18 21.18 21.18 19.62 19.62

MARKSANS PHARMA CMP - `45.65
BSE CODE Volume Face Value

524404 1875650 `1
T
he company manufactures and sells Scrip’s Movement
generic pharmaceutical formulations
and is also engaged in providing
R&D and CRM services to pharma
companies across globe. The company
generated major revenue from therapeutics
like OTC (29%), prescription drugs (21%)
and pain management (17.5%) in FY17.
Further, the company generates nearly 83% 2017 2018
of its revenue from the US and the UK. At
the end of 2017, the company’s Goa unit,
which exports solid dosages and soft Last Seven Days’ Volume Table
gelatine capsules, received UK MHRA
(No. of Shares)
clearance. With this, the company is
mulling capacity expansion of the unit and Days Volume
starting a new facility in Navi Mumbai. It is 09-Jan-18 28,05,479
expected to file ANDAs and launch 6-12 10-Jan-18 37,22,656
products in the second half of FY18. The 11-Jan-18 49,39,541
company expects further penetration in 12-Jan-18 21,82,506
Europe and Australia. Going forward, 15-Jan-18 11,64,054
pharma sector is expected to improve after 16-Jan-18 22,84,729
17-Jan-18 18,75,650
the softening of the GST impact.
The scrips in this
column have been MAN INFRA CONSTRUCTION CMP - `69.15
recommended
BSE CODE Volume Face Value
with a 15-day investment 533169 157301
T
`2
horizon in mind and he civil construction company in which
Scrip’s Movement
carry high risk. Therefore, ace investor Rakesh Jhunjhunwala
investors are advised to holds a stake, is engaged in port
infrastructure as well as residential construc-
take into account their risk tion. The company generated its FY17 revenue
appetite before investing, from EPC (92%) and realty (8%). Its financial
as fundamentals may performance in FY17 was quite noteworthy,
with its revenue and PAT growing by 99.5%
or may not back the and 201%, respectively. Moreover, its TTM
recommendations. revenue and PAT are already 25% and 16.4%,
2017 2018
respectively, up to the September quarter
results. The company’s EPC order book stands
Hot Chips of Last One Month at `669 crore as on September 2017 quarter,
out of which 70% pertains to port infrastruc-
Reco. Peak Likely ture and the balance pertains to residential
Price After Gain
projects. The orders are expected to be
(`) Reco* (%) Last Seven Days’ Volume Table
executed within 12-18 months. The company
Issue No 2 ,Dec 25, 2017 - Jan 7,2018 (No. of Shares) has also bid for orders amounting to `2000
Goodricke Group 457.00 487.00 6.56 Days Volume crore. As per the mandate, the company has
Cupid 285.00 423.00 48.42 09-Jan-18 2,08,513 already registered all its projects under RERA.
Issue No 3 ,Jan 8 - 21, 2018
10-Jan-18 2,39,973 Considering the company’s Ghatkopar project
Bharti Infratel 379.00 379.00 0.00
11-Jan-18 1,56,651 in Mumbai, 30% of phase-I has been opened
12-Jan-18 2,35,777 for sale again and phase-II work is expected to
Advanced Enzyme Technologies 302.50 323.00 6.78 15-Jan-18 1,64,271 start in January 2018. The company’s D/E
*Highest price after our recommendations 16-Jan-18 1,37,350 stands at 0.5, while the interest coverage is 4.3,
17-Jan-18 1,57,301 which lends it financial stability.
(Closing price as of Jan 17, 2018) DS

Technicals Equity
NIFTY Index Chart Analysis
Nifty Breaches Resistance, Gradual Upside Visible
N
ifty has ultimately Roadmap for the next 15 trading sessions
succeeded in achieving our Ideas Nifty Levels Action to be Initiated Probable Targets
first target of 10700 before Close above 10780- 10900 on the daily chart on
the end of FY18. Resistance for the medium term 10780-10900 closing basis would give further momentum to the 11000-11200
bulls.
Admissible corporate
earnings so far have kept the Indian stock Close below 10600 on the weekly chart would
Support for the medium term 10600 10500-10400
change the trend and trigger a retreat.
markets going. Frontline Q3 earnings
have helped Indian benchmark indices FY18 is expected to remain subdued at witnessed correction for gap-filling from
hit all-time highs yet again, despite nearly 6.5%. Thereby, the markets the very next day and has bounced back
external hiccups from commodities front. witnessed slow momentum amid the recently with rising volumes, for 61.8%
Brent crude hit above its critical level of mixed macroeconomic numbers. The retracement level of the prior upward
USD 70/barrel recently, amid robust upcoming Union budget would also rally. With this, on the upside, we hold
global demand, production cut from decide the fate of the market, where the 10780, which is the upward sloping
OPEC and strong buying in oil futures. government has lowered its fiscal trendline level formed by joining Aug 2
Recently, the country reported its IIP borrowing requirement to `20,000 crore and Nov 6 points, as the immediate
data, i.e. the factory output, which hit its from `50,000 crore ahead of the budget. resistance level, while 10900 will act as
25-month high at 8.4% in November, the next resistance. Otherwise, we may
driven by the 10.2% rise in Technically, the major benchmark index, yet again see a retreat, where we hold
manufacturing. Further, Indian CPI rose Nifty, is seen in the doldrums, struggling 10660-10590 as immediate supports.
at its fastest pace in 17 months at 5.2% as at peak levels because of lack of This is the seventh consecutive weekly
forecasted, led by increasing prices of momentum, being in the overbought uptick for the Nifty, and hence on
vegetables and crude oil. The ever-rising zone. Though the momentum oscillators continuation, we hold 11000-11200 as
CPI would delay or even halt RBI’s RSI and stochastics above 70 depict our next medium-term resistances. On
monetary easing. The WPI too rose to tiredness, no indicator is yet giving sign the other hand, if the markets correct on
3.58% as against 2.10% in the of an immediate correction for now. In account of profit-booking, we hold
corresponding month of the previous fact, RSI still holds above its trendline 10500-10400 as the supports, where
year. The country also received its GDP level of 67. Talking of the daily 10400 may act as provisional trend
forecast, which looked quite optimistic movement, Nifty had seen a gap-up reversal.
after FY19; however, the second half of opening on January 15 and, thereafter, it

STOCK RECOMMENDATIONS
KAKATIYA CEMENT SUGAR & IND. ........... BUY ........ CMP `404.55
BSE Code : 500234 Target 1 ..... `448 | Target 2 ..... `469 | Stoploss....`380(CLS)
The stock of Kakatiya Cement is currently trading at

`404.55. Its 52-week high/low stand at `448.90/
`292.75, which were made on May 4, 2017, and
January 20, 2017, respectively. Considering the daily
time frame, the stock has formed a symmetric triangle
pattern with the starting point on July 1, 2016. The
stock has made multiple lower highs and higher lows
since then. In the last eight trading sessions, the stock
attempted upper trendline breakout four times, but it
failed to sustain the levels on a closing basis. Hence,
any significant breakout here onwards may give an
impulsive upside in the stock. Currently, the stock has
a breakout at `417 level. The volumes are justifiable
and the 14-period RSI is quoting in the range of 50-65.
The stock may gain momentum when the RSI hits
60-63. Hence, with expected momentum, we suggest a
BUY in the scrip above `417 on a closing basis.
ICICI PRUDENTIAL LIFE INSURANCE CO. .......... BUY ..... CMP `419.00
BSE Code : 540133 Target 1 ..... `460 | Target 2 ..... `475 | Stoploss....`390 (CLS)
The stock of ICICI Prudential is currently trading at
`419.00. Its 52-week high/low stand at `507.90/
`330, made on July 4, 2017 and January 16, 2017,
respectively. The stock was trading with lower tops
and lower bottoms until it broke its immediate
major resistance at `400 on January 8, 2017. With
this, the stock also gave its downward sloping
trendline breakout with rising volumes and
14-period RSI quoting at 68. After four consecutive
upbeats, the stock corrected up to 38.2%
retracement level and has recently bounced back.
Now, the stock has formed a kind of inverse head &
shoulders pattern, which has a breakout at
`420-422 levels. Once the stock breaches these levels
on a closing basis, it holds a potential upside of 45 to
55 points in the medium term. Rising volumes and
RSI trailing at 68 suggest momentum in the stock.
Hence, we suggest a Buy in the scrip above `420 DS
level
*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.

Analysis Equity
The company also possesses power
generating assets (thermal and hydel)
with a cumulative capacity pegged at 76.5
MW. Both the thermal power and hydel
power primarily caters to its graphite
electrode manufacturing needs and the
surplus power generated is sold in the
market through IEX and bi-partite power
purchase agreements with open access
consumers. This business registered a
turnover of `208 crore in FY17 as against
`200 crore in FY16, growing by 5 per
cent, due to improved power generation.
The hydro-power business is generating
stable income and costs are coming
down YoY and, as a matter of fact, 75-80
per cent costs are just interest on debt
which will decrease every year due to
HEG Limited repayment. This segment is expected to
be a major source of support to enhance
RIDING PIGGYBACK ON DEMAND

organisational profitability.
INDUSTRY OVERVIEW
FOR POWER AND STEEL

Steel Industry : World Steel Association
(WSA) reported a growth of 5.6 per cent
in world crude steel production to 1266
H
million tonnes for the first 9 months in
2017, as compared to the same period in
EG Limited, incorporated In addition to servicing large domestic 2016. WSA forecasts global steel demand
in 1977, is the second steel players, HEG supplies large to reach 1648 MT in 2018 from 1516 MT
largest graphite electrodes proportion of its production volume to in 2016.
(GE) producer in India the top 20 steel companies in the world.
and fourth largest in the The company exports approximately 60 India is now second largest steel pro-
world. GE is essential for making steel per cent of its production to about 30 ducer after China, overtaking Japan. The
through electric arc furnace (EAF) route. countries around the world. HEG’s easy availability of low-cost manpower
The company produces two grades of export prices are similar to those of and the presence of abundant iron ore
graphite electrodes-Ultra High Power Japanese and American companies' reserves makes India competitive in the
(UHP) and High Power (HP) -used in prices and these countries do not impose global steel landscape.
producing steel through the EAF route. any duty on import. HEG commissioned
The order booking share between HP its last capacity expansion way back in The outlook for the steel industry
and UHP is about 60 per cent and 40 per February 2012 wherein it installed a appears promising, especially due to the
cent respectively. This business segment capacity of 14,000 tonnes, incurring a government’s thrust to infrastructure
contributes 97 per cent to the company’s capex of `225 crore. creation and housing. To achieve steel
topline. capacity build-up of 300 MT by 2025,
India would need to invest USD 210
billion over the next decade. The
HEG has an integrated facility at Mandideep, government also imposed anti-dumping
duties on cold-rolled steel products from
Madhya Pradesh which has an installed Korea, Japan, China and Ukraine and
capacity of 80,000 MTPA and is the largest another six countries for 47 different
hot-rolled steel products. Also, the
manufacturing capacity of graphite electrode National Steel Policy 2017 enumerates
Indian government’s plan to enhance the
under single roof in the world. The plant also per capita steel production by over 2
has a co-generation power capacity of 77 MW. times from 61 kg in 2015 to over 160 kg
in 2031. The share of EAF will keep on

HEG Ltd. FINANCIALS
BSE Code 509631 CMP : `2923.50 On an annual basis, the company posted
Particulars Amonut (`Crore) 8.28 per cent increase in its revenue to
Net Sales 1115.53 `896.02 crore in FY17 from `827.54 crore
in FY16. However, the company
% Change 49.44%
registered a PBDT decrease of 51.88 per
Operating Profit 277.69 cent to `33.05 crore in FY17, as against
% Change 256.56% Other raw material includes power, PBDT of `68.68 crore in FY16. The
Net Profit 98.21 windup pitch, fuel oil, gases etc. How- company reported a loss of `50.11 crore
% Change -254.22% ever, the availability of needle coke in FY17 as against a loss of `15.15 crore
Equity 39.96 continues to pose challenges to the in FY16.
EPS (Rs.) 24.57 electrode makers in achieving higher
FV (Rs.) 10.00 capacity utilisation since needle coke is During Q2FY18, HEG reported net sales
finding an alternate usage in the industry of `409.54 crore, thus registering a
P/E (x) 111.03 to make lithium Ion batteries, thus growth of about 111.1 per cent on a YoY
Dividend Yield (%) 0.00 putting pressure on supply side. basis. Also, HEG’s EBITDA margin
Book Value (Rs) 244.45 improved significantly to 46.3 per cent in
(Trailing Four Quarter Data) n CMP As on 16-Jan-2018 According to Technavio’s market Q2FY18 as against 11.4 per cent reported
analysts, the global GE market is in Q1FY18. The company reported PAT
increasing due to its relatively more expected to reach around 2 million for the first time after reporting losses for
eco-friendliness and increased availabil- metric tonnes by 2020 in terms of seven consecutive quarters; it reported an
ity of scrap at lower costs. The total steel volume growth of 10.16 per cent CAGR impressive turnaround at the PAT level,
of EAF in India is just about 30 per cent during the period. Globally, the demand reporting a profit of `113.7 crore. This
of total steel as compared to 60 per cent for UHP graphite electrodes is antici- was due to higher capacity utilisation and
in the US and 44 per cent in western pated to account for around 67 per cent better realisations. HEG’s margins are
Europe. of the total graphite electrode market by likely to improve further before stabilis-
2020. Also, it takes a minimum of 18 to ing, backed by improvement in selling
Graphite electrode sector: Traditionally, 24 months for any growth in the capacity price of GE, utilisation rate and opera-
the global GE capacity has been about in the graphite electrode space. tional efficiency.
9,00,000 MTPA (ex-China) while
demand was only about 6,00,000 MTPA. Scenario in China bodes well: China VALUATION
This resulted in not so happy times for has been exporting approximately The company maintained a PE ratio of
the GE industry. However, in recent 115-120 MMT of finished steel to more 111.03x, as against its peer Graphite
years, global GE industry witnessed than 200 countries over the past couple India's 81.66x. The company has a
supply side restructuring as subdued GE of years, leading to reduced production negative return on equity of 5.54 per cent
prices led to closure of about 1,90,000 in these countries. However, the and a return on capital employed of 0.46
MTPA GE capacity. Since then, the crackdown on pollution by Chinese per cent. The company has a debt-to-
fortunes of the graphite electrode sector government last year led to closure of equity ratio of 0.78x and price-to-book
have been on the rise. The key triggers some identified highly polluting value of 11.16x. HEG has repaid `97
have been the consolidation of the industries. As a result, exports from crore debt in FY17 and is expected to
graphite electrode market globally; China over the first nine months of repay `150 crore debt in FY18. The
increase in steel production through EAF 2017 slumped by almost 30 per cent promoter’s stake in the company has
route (outside China), coupled with an to 60 million tonnes. The Chinese increased from 58.79 per cent in the June
increase in global steel prices and the exports of steel products were 5.1 million quarter to 61.04 per cent in the Septem-
closure of steel capacity in China. tonnes in September 17, lowest monthly ber quarter.
total since February 2014. Also, countries
Needle coke is the main raw material like India, US, Mexico have imposed CONCLUSION
which comprises 40-45 per cent in total import duty on electrode exports from Due to robust upstick in electrode prices,
raw material required for electrode. China. HEG has been one of the good wealth
creators for investors with the stock price
Peer Comparison surging over 1350 per cent in the last one
Stocks M cap P/E P/B 1 Yr 3 Yr 5 Yr Dividend year. However, considering the risk of
Returns Returns Returns Yield (%) volatility in raw material prices and steel
HEG 11,800.93 111.03 11.16 1350 131.41 66.58 0 production primarily through EAF route,
Graphite India 16,625.49 81.66 8.64 854.2 854.2 59.98 0.24
we recommend our reader-investors to
HOLD the stock for now. DS

Expert Speak Personal Finance
Sector & Thematic Funds: Look Before You Leap
and market values. They focus on Remember, there is always a risk that the
structural as well as cyclical factors market may take more time to recognize
that play an important role in the views of the fund house with regards to a
economy. particular theme which forms the basis
of launching a fund. Besides, there can
Here’s what you should know about be ambiguity in fund’s definition of a
sector & thematic funds theme. There is also a risk of a fund
A sector fund can be a great option for manager’s style becoming too
investors who understand a sector as well individualistic, which may be difficult to
as its future potential and seek follow if he decides to leave the fund.
Hemant Rustagi
Chief Executive Officer, Wiseinvest Advisors
M
diversification within that sector. Besides, Follow a strategy for investing in these
utual funds allow these funds can play a supporting role to funds
investors to invest in a diversified portfolio by allowing Broadly speaking, these funds should
equity market through investors to increase exposure to those constitute only a limited portion of one’s
a variety of funds. sectors that may be under-represented in portfolio. Simply put, if one has already
There are large-cap, the portfolio. built a well-diversified portfolio and
mid-cap, small cap, multi-cap, contra/ can withstand extreme volatilities, these
value fund, sector and thematic fund as Even for those who invest in stocks funds can contribute handsomely in
well as equity-linked savings schemes. directly, sector funds offer advantages improving the overall portfolio returns.
The mix of funds in the portfolio of an over individual stocks as the fund
investor should be in line with his/her manager tracks the industry/sector One can adopt different strategies to
capacity to take risk, experience of development for its investors. Since the reduce the risk generally associated
investing in market-linked products and performance of sector funds fluctuates with such funds. One such strategy is to
the size of the portfolio. depending on how their particular have a small exposure to 3-4 sectors/
sector/industries are performing in the themes. It is also advisable to review one’s
In the current market situation, some of market, a wrong selection of sector/s can portfolio to ensure that one is not
the sector and thematic funds usually adversely affect the overall portfolio investing in a sector/theme that already
catch investors’ fancy due to superlative return. Therefore, for a sector fund has a sizeable exposure through other
short and medium-term performance. investor, it is essential to have the funds. Besides, one should have the
Since sector funds ride on industry ability to withstand the short-term capacity to hold these funds for the
cycles, they have the potential to offer fluctuations in order to enhance longer term if required and must curb
attractive returns if the timing is right, long-term returns. the urge to switch from one sector/theme
albeit with higher level of volatility. At to another.
the same time, they do not provide Like sector funds, thematic funds also
downside risk protection available in carry a high degree of risk. However, they As a thumb rule, for someone who has a
diversified funds. are more diversified than sector funds as decent exposure to equity funds and is
they invest in sectors that are likely to conversant with the behavior of equity
Similarly, thematic funds look for trends benefit from a theme. In other words, market, around 10-15% of the portfolio
that are likely to result in outperformance thematic funds also are suitable for can be invested in sector and thematic
of certain sectors or companies. In other investors who have the experience of funds. The key is to select the funds
words, the key factors are those that can investing in equity and equity funds and carefully and monitor the progress over
make a difference to business profitability have higher risk appetite. the investment period. DS

Special Supplement
Corporate Social
Responsibility
Lijo Chacko
Vocations Avocations
From being a man-at-arms at the fore front of the
Indian Naval Army to becoming a harbinger of social
change- Lijo puts light on the tragedy of the commons
and the ways to overcome it through entrepreneurial
leadership. A contemplative piece from the dynamic
and extraordinary life experience of the ex-rank of
commander and the present day Executive Director of
Citizen Changemakers Foundation, his insightful
perspective on CSR is a fresh breeze.
I
n this era, where we as human beings are connected on elementary canons of everyday face to face civility and to seek
multiple levels, a global outlook will be immensely material gain” we may let our philosophical antennae tuned
beneficial for us in the field of social change where we try into the wellbeing of the humanity at large. If that tuning
to make the three broad stakeholders – corporates, requires one to spend some time on the ground, we should try
governments and NGOs/CSOs - collaborate. Whatever be the to do it. In this context I am reminded of a good friend, Sai Raj,
difficulty of engaging with and among each other we need to the MD of Synergy Navis, who at the end of our day’s visits to a
agree to work together for the greater good. Perspectives few NGOs sighed, “…and I thought I had problems”. Sure
gained from being part of two large movements: the right to enough because of that personal contact, he and his team are
food campaign and helping with public surveys of the rural physically working closely with Rainbow Homes in Pune since
employment guarantee scheme, both of which are national then.
level movements, has given me a fair understanding of the
perseverant hard work put in by NGOs/CSOs from various People in C-suites are measured against very tangible goals—
parts of the country and the fruits it has borne. The Indian shareholder value, profits, revenue growth, etc—and are
government has humongous resources available at it’s rewarded for achieving them. These become their strong
disposal and has machinery which can reach deep into personal drivers too. So, how does one hold maximizing profits
the country. as well as doing social good as goals at the same time in life?
But then such dichotomies exist in the world in several aspects
Even as we take cognizance of what Theodore Levitte wrote in of our lives and we have been managing it, so we could
the ‘50s, “… business has only two responsibilities – to obey the consciously strive to strike a balance here too. Perhaps to help

us achieve that balance Robert Frost advised that it is not out new things every day to survive, even in small
enough to do one’s work faithfully but that we should strive to businesses. Could one channel risk capital in this
make our vocations into our avocations: direction?
n How can one trigger social impact? What modifications
My objective in living is to unite need to be made to our current managerial paradigms?
My vocation and my avocation Could we endeavor to be globally impactful in the social
As my two eyes make one in sight. field where we could seamlessly bring entrepreneurial
For only where love and need are one leadership to large scale social transformations which is
And work is play for mortal stakes perhaps one effective way to engineer maximum social
Is the deed ever really done impact in the world?
For Heaven’s and the Future’s sakes. n Could we keep nature in the centre of things when we
start to work on a new idea or when trying to solve a new
We could perhaps use a few nudges to think on business problem/product?
n When trying to solve a social problem as part of CSR,
those lines of aligning to humanity at large: could the R&D departments/organisations be physically
close to the areas that we are trying to solve a problem
n Dr Tara Nair, a friend, in her essay on Binding Stakehold- of/in?
ers into Moral Communities, invites us to think on n Could we encourage social intrapreneurship in our
Corporate Social Performance (CSP) which could companies? Could such social enterprises/organisations
perhaps help businesses by exploring the underlying get enough of the CSR department’s ‘patient’ capital?
interaction among three dimensions: the principles (CSR
responsibilities - philosophical orientation), the processes Ela Bhat’s counsel, though a few years old, remains fresh in my
(corporate social responsiveness - institutional orienta- mind, “Poverty is violence, when you consume more than what
tion), and the policies (social issues management – orga- you require you operate in the realm of violence. Simplicity is
nizational orientation). ahimsa/non-violence.” We may at times feel proud that we are
n Should we try to leverage every bit of the branding which givers and hence at a higher standing, but one tribal tenet
can come our way while engaging in social activities? Or implores us to recognize the fact that if there are no potential
could we just stop trying to gain anything out of our takers, a potential giver cannot become an actual giver. Imagine
social engagements? having to live a life without having the chance/opportunity to
n Private equity and venture capital has always been give! The sooner we internalise this ancient wisdom, the easier
chasing the elite...people from top colleges/organisations it becomes for us to operate in the space of CSR with a clear
attract Risk capital. People like many of us with elite mind. When we reflect on why we are doing what we are doing
degrees and corporate standings may not be the real and how distant a space we came from, I wonder whether it is a
risk takers since we have the best fall back options. But higher design at play, or whether we all have in us an innate
there many real risk takers in remote areas or are working fount of empathy that could be channeled to touch other's lives
in tough conditions, without any backing trying to work and help build that of others with compassion.

Special Supplement
Corporate Social
Responsibility
Infosys Foundation:
Outreach For A Brighter Tomorrow
S
eventeen years before the Indian endowment for the establishment of a benefits of educational training,
Companies Act 2013 mandated a superior gravity fed water supply system vocational assistance, community
purse for CSR, Infosys had estab- that will improve sanitation and water development and, more importantly,
lished a foundation to reach out to the supply to more than 100 villages receive assistance to help conserve natural
underprivileged sections of society. A impacting 40,000 beneficiaries. The resources. Technical resources planned
reflection of the ethos since inception, Foundation consistently supports and for the upliftment include a well-stocked
the Infosys Foundation has contributed identifies sustainable projects that will library and advanced training.
immensely to the community with help beneficiaries over a long period
initiatives straddling five areas of activity. without having to rely on outside ARTS & CULTURE : While the Foundation
assistance. This is one such project that supports performing arts and artisans
CSR touches lives in ways difficult to will transform the way water supply is elsewhere, this initiative, in association
fully comprehend or quantify, and managed, in addition to empowering with Sahapedia, is aimed at creating a
demands the undivided attention of local communities to handle digital bridge between the masses and the
benefactors and sponsors. Infosys has development funds. rich cultural glory of India. This project is
closely worked with NGOs and civic aimed at collating and disseminating rich
authorities to reach out to the needy, With an aim to motivate researchers to content that reflects the glory of India
helping to restore smiles. Straddling perform cutting-edge research, as well as digitally. Ensuring the connect of the
activities across healthcare, education train them to raise awareness about future with the past heritage, culture and
support, destitute care, impetus to rural infectious diseases, the Foundation tradition of India is one of the objectives of
development and support to performing partnered with IISC Bangalore. The partner- this one-of-a-kind initiative that is
arts and heritage of India, the Founda- ship is to enhance infrastructure and destined to bring the cultural wealth of
tion is actively involved in CSR activities broaden research activities at the Centre for India to more than 10 lakhs users in a few
with material and financial inputs, in Infectious Diseases Research (CIDR) at the years from now.
addition to resource support. Some of the institute. The endowment will be used
latest milestones achieved includes towards research, training and creating SUSTAINABILITY : We saw a great
projects in the following categories: awareness about infectious diseases. opportunity to contribute to the global
fight against climate change while
EDUCATION : Aimed at arresting school The Foundation partners with non-gov- keeping the community at the heart of it.
dropout statistics that prevent ernment organizations (NGOs) to make An estimated 60 per cent of Indian
underprivileged sections of society from a difference among local communities households rely on traditional cooking
rising above the great divide, the and prioritizes projects by assessing their methods using firewood. This leads to
Foundation’s initiative in Assam in impact, and match funding requirement the gradual loss of forest cover on the one
association with Kalyan Ashram includes with availability of funds in our corpus. hand and indoor air pollution-related
an endowment for a hostel that will The Infosys Foundation takes pride in deaths on the other. Nearly a million
accommodate 100 students of needy working with all sections of the society deaths a year in India are attributed to
sections of Udalgiri district. The that were traditionally overlooked by the indoor air pollution from cooking.
partnership with Shishu Shiksha Samiti society at large. Infosys has undertaken large-scale
aims to help impart education through two projects where rural communities
schools that will positively impact 19 RURAL DEVELOPMENT : The received either high efficiency biomass
villages with a combined population of one Foundation has embarked on an cooking stoves or biogas units to replace
lakh residents. Women empowerment is ambitious development programme for traditional cooking. These clean-cooking
high on the agenda of the Foundation, and the upliftment of communities in the technologies produce very little or no
consequently, the Saraswati Smarak Samiti tribal belt of Jhabua–Alirajpur in Madhya smoke. They also eliminate or reduce the
receives funds for the establishment of a Pradesh. The Foundation has inked a pact firewood requirement, helping prevent
Seva Kendra that is aimed at making with Shivganga Samagra Gramvikas the loss of forest cover. Infosys projects
women self-reliant. Parishad through a grant for integrated are helping nearly 100,000 rural families,
development of the belt across various while reducing an estimated 650,000
HEALTHCARE : The Visakha Jilla Nava activities. More than 5,00,000 villagers tonnees of greenhouse gas emissions
Nirman Samithi (VJNNS) received an will directly and indirectly reap the over a 5-year period.

Special Supplement
Corporate Social
Responsibility
CSR Aims To Ensure That

Companies Conduct Their Business
In A Way That Is Ethical.
B
ack in April 2014, the Ministry of was announced to be launched on particular NGO/entity to carry out the
Corporate Affairs (MCA) had October 2 the same year, to be accom- CSR work as an Implementing Agency.
notified Section 135 and Schedule plished by 2019, on the 150th birth
VII of the Companies Act, 2013, which anniversary of Mahatma Gandhi. As the As per the spending pattern in these last
relate to corporate social responsibility first step towards “Swachh Bharat”, toilets three years analysed by Corporate Social
(CSR) that was to be effective from April in all schools, including separate toilets Focus, the first year saw a spend of
1, as part of the new Companies Act. The for girls, were to be built within one year. `5,000-plus crore, with a marginal
norms apply to companies with net profit We could give the chronology of the increase in the second year at around
of at least `5 crore or `1,000 crore events, as our CSR magazine (Corporate `7,500 crore, topping up to `8,200-plus
turnover or `500 crore net worth. These Social Focus) was launched on April 16, crore in the thrid year. As reported earlier,
companies will have to spend two per cent 2014, coinciding the year of mandatory PSUs continue to be the major spenders.
of their three-year average annual net CSR introduction. The magazine was Majority of spend was seen in the states
profit on CSR activities in each financial launched by Padmashree Rajashree Birla of Maharashtra (60%) and Gujarat
year, starting from FY15. “The rules had at the Global CSR Conference. (40%). The education sector followed by
been finalised after extensive consulta- healthcare have been the major areas of
tions with all stakeholders and provide for As announced, on Oct 2, 2014, the spend so far, followed by rural develop-
the manner in which CSR committee Swachh Bharat Abhiyaan was launched ment. Preservation of heritage structure
shall formulate and monitor the CSR with the PSUs joining in a full-fledged was ignored to a great extent. Promoting
policy, manner of undertaking CSR activi- execution mode. PSUs being the large local art and culture through heritage
ties, role of the board of directors therein spenders on CSR activity, the real conservation is directly linked to the
and format of disclosure of such activities execution began. Followed by a series of social well-being of the community, the
in the board’s report. Thus, mandatory initiatives directly/indirectly associated definitive reason being that it spawns a
CSR was born in India. with CSR, initiatives like the Pradhan- sense of identity among people, who
mantri Jan-Dhan Yojana (financial associate with the culture and share a
CSR aims to ensure that companies Inclusion), Skill India” movement, digital common history with it. The importance
conduct their business in a way that is infrastructure as a priority, Make in of engaging communities through CSR
ethical. This means taking account of India, ‘Saansad Adarsh Gram Yojana’, initiatives on art and culture is not being
their social, economic and environmen- Beti Bachao, Beti Padhao, each Member put forth systematically and corporates
tal impact and consideration of human of Parliament adopting and making one are not aware about the benefits of
rights. It can involve a range of activities, model village in his/her constituency by carrying out such programmes. There is
such as environmental protection and 2016, etc. immense potential for executing such
sustainability. In the first year (2014), apart from the successful programmes which can align a
PSUs, other companies were still on the corporate’s activity to its core business.
After the new government was sworn in, 'wait and watch' mode, some trying to
there was lull till about August 2014. The dilly-dally under the garb of forming the Measures for the benefits of armed forces
famous inspiring speech of Prime CSR Committee. The law had clearly veterans, war widows and their indepen-
Minister Modi on the Independence day specified one Independent Director on dents is another area of neglected spend.
from the ramparts of Red Fort actually the board of CSR Committee, apart from Kudos to our PM for his customary ritual
paved the way for a new beginning of the company's senior officials. The idea of spending Diwali with the armed forces.
mandatory CSR in India. Stressing on the was to ensure there was no favouritism However, not much is being done for the
need for cleanliness, “Swachh Bharat” on allocation of funds to any one forces under the CSR. Though many

corporates in their CSR policy framework late-career stage jobs are relatively more activity, as the idea of CSR is associated
have mentioned this as one of the areas in the private sector than in the public with doing social good and so this
earmarked for their spend, but anything sector, ex-servicemen are a useful concept of funding incubators as CSR is
worthwhile has seldom been done. resource. "Corporate India needs trained seen as alien. Secondly, many companies
Though there is a general perception that minds and personnel. Ex-servicemen fund start-ups and get returns on that
armed forces veterans and their depen- constitute a huge resource of trained and investment. But when they give as CSR
dents receive enough institutional and disciplined manpower. He said a grants to an incubator, which is nothing
government support and therefore, majority of ex-servicemen are "retired but diverting the funds to start-ups, they
private sector or anyone else need not but not tired". "Society owes debt and get no returns at all. The general myth is
bother. Besides, if an institution, corporate gratitude to the ex-servicemen. It is very that CSR funding in incubators is an
or individual does want to do something, important that segment of society come interesting option but may not be
they do not know how to go about it, as forward and absorb these extremely sustainable for building a start-up
the awareness level is almost nil. talented and trained men into jobs," ecosystem for the longer term. That is
Jaitley said. He added that ex-servicemen better done by capital that will look for
Arun Jaitley, Finance Minister and are best suited to run Corporate Social returns also, as it will ensure more
Minister of Corporate Affairs, during his Responsibility (CSR) programmes. competitive start-ups to build roots for
stint as Defence Minister had urged that Technology incubation have evoked little future. It is a different thing that CSR
the corporate sector should utilise the or practically no interest at all. There are funding is limited to approved academic
services of ex-servicemen as their multiple reasons for tepid corporate incubators, but companies are not aware
commitment to work and discipline is interest. One of the traditional reasons as which academic incubators are
without parallel. Since mid-career and being is that it is not looked at as CSR approved.
Prakash Reddy Editor-in-Chief, Corporate Social Focus – A CSR Magazine

Special Supplement
Corporate Social
Responsibility
Dabur Helps 22 Villages Achieve

‘Open Defecation-Free’ Status
N
ew Delhi, Jan 15, 2018: Moving them. “At Dabur, we believe that an organ-
forward on its mission to create a isation’s true worth lies beyond its
heathy India, the country’s largest business and it is best reflected by the
home-grown consumer products maker service it renders to the community and
Dabur India Ltd has helped 22 villages in the society. Businesses have a responsibil-
Uttar Pradesh and Himachal Pradesh ity to subserve larger societal goals as they
achieve ‘Open Defecation-Free’ (ODF) have the ability to contribute significantly
status. The company has targeted to nearly and impactfully to sustainable and
double the number of ODF villages under inclusive development. Since toilets are
its fold from 22 now to 41 by the end of constructed in the individual households,
FY2017-18. the maintenance of these toilets is the
responsibility of the individual household,
The 22 villages declared Open Defecation- making the project sustainable in the long
Free following sustained efforts by Dabur run,” Sudhakar said.
India Ltd include eight in Uttar Pradesh in the construction of toilets in their
and four in Himachal Pradesh. In all, the In addition to constructing household homes. Through village meetings with
company has helped construct toilets in toilets, Dabur and its CSR arm Sundesh, SHG and Kisan Club members, Dabur
over 3,000 households across these have also been organising several motivated the villagers towards changing
villages to achieve this feat. In addition, programmes and cleanliness awareness their habit of open defecation. “We
separate toilet blocks for boys and girls are drives across these villages to sensitise the motivate them to construct toilets in their
also being constructed in nearly 20 residents about keeping their surround- households with our financial support.
schools across five states: Uttar Pradesh, ings clean. However, in order to bring in a degree of
Himachal Pradesh, Uttarakhand, ownership, we do not sponsor the
Rajasthan and Assam. The ‘700 se 7 kadam’ initiative began with complete amount. Instead, we fund half
Dabur conducting a detailed survey of the cost of constructing the toilet, while
“As a company, Dabur is committed to its the villages to ascertain the status of the balance is to be borne by the individu-
motto of being dedicated to the health household toilets. As per the data al household.
and well-being of every household. The collected from these villages, it was
sanitation exercise in rural India, covering observed that nearly 50 per cent of Also, the financial support is given to the
both households and schools, is part of households in most villages did not have woman of the household through an
this mission. Our intention to make 41 individual toilets. Villagers were using account payee cheque. The financial
villages across Uttar Pradesh, Uttara- open spaces to defecate, which was support is given in two installments, with
khand and Himachal Pradesh Open Defe- posing a serious threat to their health, in the first cheque given after the pit is
cation-Free by the end of financial year addition to compromising the safety of constructed and the second instalment
2017-18 and we are well on track. Our women and girls. Due to the open after the entire construction is completed.
idea is to improve the overall hygiene defecation, the cases of diarrhea, cholera, The women are asked to submit their
standards in these villages and turn them typhoid and hepatitis A were also rising at identity card and bank account details,
into model villages, offering a variety of an alarming pace in these villages. Due to along with a request letter for construct-
services, from operating health posts to unavailability of toilets in houses, family ing the toilet.
vocational training programmes for the members, especially women
youth,” said A Sudhakar, CSR Head, and adolescent girls, had to wake up in To authenticate the request of the
Dabur India Ltd. the wee hours and head to the outskirts of beneficiary regarding unavailability of
the village to defecate. Their low income toilet and construction of new toilet in
Dabur had in 2016-17 constructed nearly was the biggest stumbling block in their household, construction activity is
1,254 household toilets under its mega constructing toilets in their households. monitored at every stage with photo-
initiative “700 se 7 kadam” that sought to graphic evidence. Finally, when the toilet
protect the dignity of women in the To address this issue, Dabur decided to is completed, a health and sanitation
hinterland by bringing toilets closer to financially support the poor households message is painted on the wall,” he said.

Special Supplement
Corporate Social
Responsibility

Special Supplement
Corporate Social
Responsibility
Karan Anand
Head - Relationships, Cox & Kings Ltd
Robust CSR Can Have A Positive

Impact In The Community
What is CSR in your view? What needs to be done, in your enhance brand.
CSR is a reflection of who we are and view, to achieve results on the
how we operate as a company. To us, ground when it comes to CSR What are the benefits of robust CSR
being socially responsible means striving spending? programme?
to embbed our values and ethics into All organisations have to balance limited A robust CSR programme has the ability
everything we do — from how we run resources and effort, so it is crucial to to have a positive impact in the commu-
our business, to how we treat our deploy yours to maximise the benefits. nity and it also encourages businesses to
employees, to how we impact the Many companies start with pet projects, act ethically and to consider the social
communities where we do business. philanthropy or propaganda, because and environmental impacts of their
At Cox & Kings Foundation, we these activities are quick and easy to business. If a company wants to
aim to bring about societal transforma- decide on and implement. But to integrate and drive CSR throughout the
tion through our CSR initiatives and achieve best results on the ground, organisation, it needs to align its social
also involve our employees in the the companies need to move toward responsibility strategies and goals with
process. CSR strategies that focus on truly organisational objectives. This will
co-creating value for the business and embbed CSR within the business
Is Corporate India responding society. Also, making smart partnering is culture to sustain the strategy over
positively to the mandate for CSR? strategic to getting the best results on the the long term.
While CSR issues have been gaining in ground.
prominence across countries, India is the Please tell us about your various
first country to have made CSR activity How is CSR in India different from CSR initiatives?
mandatory for large and profitable the CSR in the global context? Our philanthropic arm Cox & Kings
companies incorporated into law. The People in many countries are expecting Foundation is established to make the
mandate indicates that the government that corporations should meet the same world a better place by fostering a
has recognised the important role of high standards of social and environ- positive and holistic change. Established
companies in the development of the mental care, no matter where they in 2010, the Foundation is committed
country. However, we feel it is work in operate. At the same time, there is to bringing about societal transforma-
progress. Only a few big companies are increasing awareness of the limits of tion through financial support and by
visible and engaging in development government's legislative and regulatory engaging our employees to be a part
discussions, while many coming under initiatives to effectively capture all the of the solution. We work with select,
the bill are still missing in action. But to issues that CSR addresses. Businesses reputed NGOs to bring about
bring about sustainable and long term across the world including India are sustainable change in the fields of
development, companies need to work recognising that adopting an effective education, culture, animal welfare,
together with other development actors approach to CSR can reduce the risk of village development, social
to scale up innovative solutions to business disruptions, open up new empowerment, environment and
community problems. opportunities, drive innovation and healthcare.

Special Supplement
Corporate Social
Responsibility
George Alexander Muthoot

MD, Muthoot Finance Ltd
CSR Activities Create A Robust

Cycle Of Collaborative Growth
What is your definition of a robust an innate respect for the companies value to their customers and consumers.
CSR programme? through generations, resulting in deep
Currently, businesses are run in a very market penetration even in changing What is the role of the CSR
complex environment, wherein all the economic and cultural scenarios. committee?
stakeholders are very vocal about their Thus, CSR activities are favourable for all. The board of the company forms the CSR
expectations. This results in companies As businesses grow, the society gains. committee with the purpose of assisting
adopting a very robust CSR programme, And as the society flourishes, businesses the board in fulfilling its Corporate
thereby facilitating greater benefits to the gain – thereby creating a robust cycle of Social Responsibility. The CSR commit-
society at large. collaborative growth. tee plays a vital role in accomplishing the
following responsibilities:
A robust CSR programme involves What is business responsibility • Identifying various CSR activities that
forming a dedicated CSR team by the reporting? can be undertaken and prepare a
company, along with well-defined CSR A Business Responsibility Report detailed plan on the same
policy in place. Many times, to reach a divulges the details of responsible • Recommend the disbursements
wider audience and to create an impact at business practices by a listed company to required on the agreed CSR activities
the grassroot level, the companies also all its stakeholders. The report highlights • Successfully execute and examine the
partner with local NGOs or government the work done by the company from an CSR policy from time to time
initiatives. This facilitates both the environmental, social and governance • CSR committee regularly reports to the
company and all the stakeholders’ perspective. The report is significant as board on the CSR initiatives
feel-good factor of a positive social the companies’ access funds from the • The committee reviews and re-evalu-
impact and goodwill. The company public and it also has an element of ates the CSR activities annually and
board is actively involved with CSR public interest involved. Thus, the recommends any proposed changes to
committee while drafting CSR policies companies are obligated to make the board for approval
and executing CSR programmes. exhaustive disclosures on a regular basis • The CSR committee is also responsible
SEBI has outlined nine underlying for looking into the income accrued to
A robust CSR programme also aids in principles to assess compliance with the company by way of CSR activities.
developing a skilled and loyal workforce. these norms. According to these, The committee should ensure that it is
It facilitates in attracting and retaining businesses should carry out and manage credited back to the community or
good talent. The participation of themselves with moral values, transpar- CSR corpus
employees in CSR activities creates a ency and accountability. The company is • The committee can also form sub-
motivated environment among the work- responsible for providing safe and committees and delegate authority to
force, thereby leading to a sense of pride sustainable goods and services and also them as and when appropriate
in the company and its business. to promote employee well-being. The
With robust CSR programmes, corpo- company should encourage inclusive What are the CSR initiatives under-
rates have much to gain. The philan- growth and equitable development. Most taken by your company?
thropic and social contribution cultivates importantly, companies should provide The CSR activities of Muthoot Finance are

implemented through Muthoot M. George small-scale farming initiative aimed at Government ADW High School, Theni
Foundation, which was established in 1993 promoting pesticides-free organic
in the memory of our founder chairman vegetables. The programme encourages MUTHOOT FINANCE YMCA
late M. George Muthoot. The welfare individuals and families to cultivate CHANGE AGENT PROGRAMME
programmes organised by the foundation organic vegetables within the premises of Proper guidance and direction at a young
are aimed at providing assistance to their own homes age will help young minds find their true
deserving groups and individuals. potential. We launched this programme
HARITHATEERAM AROGYA with our focus on grooming young
As a strong proponent of corporate social GRAMAM PROJECT : Muthoot Finance children to develop their personalities
responsibility, Muthoot Finance has ‘Harithatheeram Arogya Gramam Project' and make them more confident. The
consciously embraced welfare initiatives became the catalyst for development in programme covered schools of Er-
that are aimed at furthering social good. the village of Chellanam. This project was nakulam district, Kerala
The objective is to ensure a positive social undertaken in order to develop the village
impetus through well-planned activities by giving educational assistance and CSR INITIATIVE ON GENERAL
backed by effective implementation. Our training for construction of rain water WELLNESS OF THE SOCIETY
initiatives help solve some of the harvesting systems, toilets etc MUTHOOT SNEHA SAMMANAM
persistent challenges in the areas of PROJECT: Muthoot M George Founda-
education, medicine, disaster manage- CSR INITIATIVES FOR EDUCATION tion launched ''Muthoot Sneha Sama-
ment and environment. SECTOR nam” to honour artists, writers and their
MUTHOOT M. GEORGE EXCEL- widows by providing financial assistance.
CSR INITIATIVES BY MUTHOOT LENCE AWARD: It is an initiative to The project selects artists who have made
ENVIRONMENT RESEARCH felicitate the top students of government their mark in their respective creative
FOUNDATION schools in Kerala, Andhra Pradesh, field and provide financial assistance as a
GARBAGE BINS TO RWAs IN DELHI Telangana and Karnataka. Students were gesture to honour their intelligentsia and
The careless treatment of garbage is a given cash award and a certificate signed contributions they have made in their
threat that Delhi has been dealing with by school authorities and the Chairman creative field
for a long time. In order to control this, of Muthoot M. George Foundation. The
Muthoot Finance distributed free programme aims at forming an equitable PAUL GEORGE MEMORIAL CRICK-
garbage bins to the Resident Welfare and sustainable society by uplifting the ET TOURNAMENT: Paul George
Associations (RWAs) in Delhi. The younger generation Memorial Cricket Tournament, the
activity helped to solve the problem and 11-day cricket tournament, has been
the garbage treatment has become WATER PURIFIER DISTRIBUTION: designed as a platform for the govern-
systematic now. Water distribution is a sensitive matter ment school students who have been
related to every establishment, but when unable to get an opportunity to showcase
HUMAN-ELEPHANT CONFLICT it comes to children, it has to be ensured their talent in cricket.
MITIGATION (HEC) IN ASSOCIA- that the water is safer. To keep the
TION WITH WWF : Urbanisation has students away from various diseases, the CSR INITIATIVE TO IMPROVE
led to fragmentation of natural habitats of Muthoot Group has distributed water QUALITY OF LIFE
elephants across the country. This leads to purifiers to the government schools in 'MUTHOOT SHAPE A SMILE'
straying of elephants into the areas of Trichy, Tamil Nadu PROJECT : We initiated this project to
human settlement, resulting in damage to bring back smiles to children suffering
human life and property. We have joined UMBRELLA DISTRIBUTION from cleft lip and palate deformity. We
hands with WWF India to mitigate this Prior to the monsoon season, free sponsored all treatment costs for children
increasing human-elephant conflict in umbrellas were distributed in a number and funded their surgeries, which were
regions like Assam, Arunachal Pradesh, of schools across Kerala. Attractive conducted at Kumaran Hospital, Chennai
West Bengal, Tamil Nadu, Kerala and umbrellas of superior quality were
Uttarakhand. Solar fences were placed in chosen for the project SNEHASRAYA PROJECT: Muthoot
the areas of conflict. Orientation camps Snehasraya is a mobile laboratory intended
and awareness meetings for anti-depreda- SCHOOL UNIFORM DISTRIBUTION for the prevention and early detection of
tion squads were conducted. Also, search The government schools are the game- kidney-related diseases, diabetes and
lights and early warning motion sensor changers in the life of students who come hypertension ailments. This mobile
alarms were provided to forest warden. from families with limited financial laboratory facilitates blood and urine tests
back-up. As the parents are struggling to and creates awareness among people about
MUTHOOT HARITHATHEERAM provide for the basic educational needs, the kidney diseases. At present, it operates
PROJECT : The 'Muthoot Haritha- Muthoot Group made an initiative by across Tamil Nadu and Kerala and exclusive
theeram project' is a revolutionary distributing uniforms to the students of the health camps are held in these states

Special Supplement
Corporate Social
Responsibility
Manappuram Foundation:
Aiming For The Gold Standard In CSR
T
he Manappuram Foundation is a to old age care, women empowerment, framework, and various professional
charitable trust set up in October environmental sustainability, coaching institutes. It also extends
2009 under the inspirational ecological balance, protection of national support to reputed colleges in Thrissur
leadership of its chief patron and heritage, measures for the benefit of district to upgrade their infrastructure.
Managing Trustee, V.P. Nandakumar. veterans of the armed forces, training,
Our express mandate is to drive forward promotion of rural sports, contributions Under the Healthcare theme, the
the CSR activities of the Kerala-based to technology incubators, rural develop- Foundation has been providing group
Manappuram Group of companies, and ment, etc. insurance benefits to BPL families,
especially its flagship Manappuram subsidized health check-ups and
Finance Ltd., India’s best known gold However, the Foundation has identified diagnostic services, pyschotherapy and
loan company. V.P. Nandakumar is the two main areas for focused attention: counselling services, ICU ambulances,
promoter and MD & CEO of this promotion of quality education and palliative care, old age care programmes,
company. upgrading the standards of healthcare personality development and life skills
among people inhabiting its area of training, fitness and Yoga centres, etc.
The Manappuram Foundation works with operation. In this context, the name Recently, the Foundation collaborated
the vision to create healthy, educated and “Manappuram” refers to a narrow strip of with a leading international NGO to
happy communities. The goal is to enrich land on the coast of Thrissur district in launch large-scale outreach programmes
people’s lives and make a visible difference Kerala sustained mostly by agriculture for diabetes awareness, detection and
in their day-to-day existence to open up a and fishing. Not surprisingly, the education. The effort will also lead to the
brighter future for them. Towards this activities of the Manappuram Founda- creation of a public gymnasium infra-
end, the Foundation’s strategy is to tion are predominantly focused on this structure for diabetes prevention and
collaborate with our internal as well as backward area. management. Incidentally, this campaign
external stakeholders to take forward recently won an entry into the Guinness
grassroots programmes in healthcare, ACTIVITIES UNDER CSR Book of World records for the sheer
education, empowerment of women and Under the Education theme, the numbers covered. It may be mentioned
livelihood projects and, thereby, make an Manappuram Foundation runs a fairly that Nandakumar’s exemplary thought
impact on the community at large. large ICSE school with two pre-schools, a leadership has been instrumental in
skill development institute under the conceptualizing such programmes with
In line with Nandakumar’s vision and National Skill Development Council national and global outreach.
experience, the Manappuram Founda-
tion essentially seeks to build upon the
inherent social relevance of its core
business of gold loans, which has long
Today, the Manappuram Foundation is widely
promoted inclusive growth by enabling
the common people to meet their credit acknowledged to have broken new ground and
requirements with ease, even as they
lacked access to formal channels of set new standards in how Corporate Social
finance.
Our CSR policy further encourages us to

Responsibility activities can be made truly
also take up a wide variety of projects,
programmes or activities pertaining
meaningful at the grassroots.
encouraging word-of-mouth publicity people as possible within our focus areas,
EVALUATING THE IMPACT generated by our CSR programmes create visible impact in the lives of the
A social audit is conducted periodically indicates how much our CSR activities people and the communities, and
to measure the impact of all major are appreciated at the grassroots. eventually make the programmes
projects and to make sure the activities self-sustaining.
are in line with the vision under the CSR. CSR SPENDS
The total CSR spend for FY2016-17 Today, the Manappuram Foundation is
Further, regular audits are conducted by amounted to `114.99 million. Manap- widely acknowledged to have broken
internal auditors and statutory auditors. puram Finance Ltd has consistently new ground and set new standards in
Beyond this, the direct feedback we get contributed 2 per cent of its net profit to how Corporate Social Responsibility
from the ground level—through our CSR and Nandakumar has committed to activities can be made truly meaningful
social and psychiatric counsellors, the deploy significant financial as well as at the grassroots. A measure of credit
ward members and office bearers of the human capital resources to our CSR must go to Nandakumar’s insistence all
Panchayats—provides us an opportunity activities in full compliance with the along that the Foundation operate with
to rectify shortcomings, if any. At the end regulatory norms. The Foundation’s standards of efficiency and accountability
of the day, the positivity and the endeavour now is to cover as many no less than the corporate sector.
Pavel Podder, CEO, Manappuram Foundation

Special Supplement
Corporate Social
Responsibility
CSR – Taking The Corporate From

An ‘Organisation’ To Being A
‘Socially Responsible Organisation’
C
SR can be defined as ‘a form of financial years. them an experience and let them enjoy the
corporate self-regulation integrated things they have never experienced in
into a business model that helps The CSR rules appear to widen the ambit their life. As part of our eco-friendly
companies to create an overall positive for compliance obligations to include the initiatives, Viviana has its own ‘Organic
impact on society. The efforts could be holding and subsidiary companies as well Waste Management’ plant for treating
philanthropic, environmental or ethical in as foreign companies whose branches or organic waste into manure. All the food
nature. It should be noted that CSR is not project offices in India fulfil the specified waste generated is converted into organic
charity or mere donations, it is a way of criteria.The rules specify that a company manure on a daily basis, which gets
conducting business by which corporate which does not satisfy the specified criteria distributed to customers free of cost and
entities visibly contribute to the social for a consecutive period of three financial also used for developing greenery around
good. years, implying that a company not the mall. The mall is India’s first mall to
satisfying any of the specified criteria in a install a 900KVA solar power plant at a
With change in time, rules have been subsequent financial year, would still need single site on its rooftop.
changed and so are organisations. It was to undertake CSR activities, unless it
on April 1, 2014, that the new Companies ceases to satisfy the specified criteria for a Third, and the most important one, is that
Act, 2013 came into force which made continuous period of three years. it helps the organisation to come closer to
India the first country to legally require its customers and employees. It gives an
companies to practice CSR activities and One must give a thought to why there is organisation a human touch that creates
“give back” to the society. As per the law, it such a requirement for CSR in today’s era? an emotional bond which helps them to
is mandatory for companies having an Why is it mandatory? First and foremost, connect with the organisation, thereby
annual turnover greater than `1,000 crore we has a human being has exploited nature creating a long lasting relation with its
or a net worth greater than `500 crore or to its maximum limits. The resources have stakeholders. Also, the process of
net profit greater than `5 crore, to spend started depleting rapidly with our ways to executing a CSR campaign helps an
2% of their 3-year average annual net create comfortable lives for ourselves. organisation to connect with its employees
profit on activities related to corporate Comfort, which has slowly and steadily and other stakeholders. We had a similar
social responsibility (CSR). started to cost us at grandeur scale. experience. Our Viviana Mall, which is
recognised as India’s first and only visually
A company needs to incorporate a report Second, the gap between the privileged impaired-friendly mall, has now become a
in its annual report mentioning a brief and the underprivileged has grown part of our ethos that even our employees
outline of the company's CSR policy, rapidly. This, in the long term, would be and retailers have consciously started
average net profit of the company for the the biggest threat to human civilisation, taking steps to give a better experience to a
last three financial years; prescribed CSR not just to a single country. Hence, there is visually impaired person. They participate
expenditure (2% of the amount of the a need to find ways to uplift the under- in our meetings to drive the campaign
net profit for the last three financial privileged. In the four years of our further to newer heights; they give
years); details of CSR spent during the operations, every year we have donated for suggestions and are at the forefront to
financial year and specify reasons in case the education of the girl child, regularly execute the same. Thus, CSR is taking
the company has failed to spend 2% of invited kids from backward areas of corporate from a mere ‘organisation’ to
the average net profit of the last three Maharashtra to visit the mall and given ‘socially responsible organisation’.
Ms. Rima Pradhan, Sr. Vice President, Marketing, Viviana Mall

Special Report Defence Sector
Enough Ammunition In The

Defence Sector For Steady Growth!
The defence sector is often considered as a sector which is yet to reach its true
potential in India, in spite of abundant opportunities. Nikita Singh explains how
the growth momentum is in place for the defence sector.
D
efence sector is one sector opportunity for import substitution only to tap the domestic market opportu-
which was never in the top when one realises the fact that the nities but also to cater to the global
list of investors only a few allocation for defence in the Union markets. This will be a win-win situation
years ago. But things have budget is USD 34.53 billion approx. for India as it not only attracts foreign
changed recently since the launch of Further, an interesting aspect of the investments, but it will also help boost
'Make in India' campaign. The defence defence budget is the fact that 31.1 per exports.
sector is buzzing with new policy cent of the budget is spent on capital
decisions and investors' expression of acquisitions. Adequate steps have been taken by the
interest in several projects. current government via its offset policy
As of now, the opening of the defence to ensure that an eco-system of suppliers
India has the third largest armed force in sector for private sector participation has is built up domestically. After many
the world and 60 per cent of its defence- allowed foreign original equipment years, investors are now eyeing a
related requirements are met by imports. manufacturers to enter into strategic favourable government policy that
One can only imagine the huge size of partnerships with Indian companies, not promises to promote self-reliance,

indigenisation, technological upgrada- Defence Policy
tion and economies of scale.
GROWTH DRIVERS
The amendments made in the Defence Critical projects have Few large projects Defense licensing
Procurement Procedure (DPP) in 2016 been moved to 'Buy & reserved exclusively for process has been
provides the much-needed impetus to Make' Indian category private sector in India streamlined
local defence manufacturing. To
encourage indigenous design, develop- Today, there is more clarity on the (original equipment manufacturer) to
ment and manufacturing of defence definition of indigenous content and it select Indian production agency augurs
equipment – buy Indian -IDDM provides investors more confidence while well for the private companies active in
(Indigenously Designed, Developed and investing in the sector. Provision for the defence sector in India.
Manufactured) policy will encourage maintenance TOT (transfer of technol-
indigenous design, development and ogy) to Indian industry partners and the Companies such as Bharat Electronics,
manufacturing of defence equipment. provisions to allow foreign OEM which is a leader in defence electronics in
India with more than 55 per cent market
share, are expected to be major beneficia-
ries in the coming year. Mahindra and
Mahindra, Godrej, Bharat Forge, Tata
group and L&T are some of the private
group that have strong defence capabilities.
INCENTIVES FOR THE SECTOR

There is tax incentive for the sector as
well as state-specific special incentive
packages are doled out for mega projects.
There are incentives for defence exports

in the form of export promotion of
capital goods scheme, duty remission
scheme and incentives as per ‘Merchan-
dise Exports from India Scheme (MEIS)’
under the new foreign trade policy. The
foreign trade policy provides guidelines
for engaging with Indian missions/
Haresh Mehta, Chief Institutional Trader, First Global

If we look at the global defence spending in the year 2018, it is expected to reach highest levels and would
record growth at around 3.3 per cent, which would be the fastest growth rate in a decade. However, India ranks
fourth since last two years in defence spending, after the US, China, and Russia. India's budget allocation on
defence spending is 57% for the army, 22% for air force, 14% for navy and 6% for DRDO
Looking at the current stock prices in this sector, many of the companies are trading at P/E multiples of 45 to
60. Currently, many companies from this sector had planned to do capex for expansion and innovation of
modern technology. However, the stock prices had ran up and the stocks became overpriced before the
execution of plans. Hence, make me neutral at these levels. I feel one should avoid these stocks in the current
scenario and wait for a reasonable correction in the stock prices.

Special Report Defence Sector
Anita Gandhi, Whole Time Director, Arihant Capital Markets

The private sector in India has less than 5% (which is about `5,000 crore annually) share of direct orders from
the Ministry of Defence for manufacturing and is gradually moving towards 10% in tandem with the 'Make In
India' initiative. At present, The government has raised the cap on FDI in defence from 26% to 49%. The FDI can
be increased to 74% through the approval route if the technology being brought in is needed by India.
With the exchange rate variation protection while bidding for contracts, the currency risk for the players in
the sector is expected to reduce. Higher licensing requirement from 20% to almost 80% for the end-user will
ensure safety provisions. The government is also working on various measures to attract more private players
in the segment.
For the defence industry, in the upcoming Union Budget 2018 , we expect more allocation to defence deals,
more focus on military modernisation and more involvement of private players
Defence Stocks Performance Indian companies are
W
allowed for tie-ups with a
alchandnagar industries, a heavy engineering products and foreign original
engineering procurement and construction major, has soared over equipment manufacturer
60 per cent. The company supplies components for nuclear (OEM) for transfer of
submarine, missiles and other defence equipments. Bharat Forge,
the world's largest forging company, has also jumped by over 50 per cent since technology (ToT) under
February 1, 2017. The company received its maiden order from Ministry of ‘Buy & Make (Indian)’
Defence in August last year to supply 1050 dual technology detection equipment category.
worth `2.02 billion. The order is to be executed within two years. Ashok Leyland,
the largest supplier of logistics vehicles embassies abroad for export promotion.
Company PE Returns(%) to the Indian Army, has also risen by Options are offered for export financing
Walchandnagar Industries - 61.20 over 36 per cent since the last budget. through line of credit and the new
Bharat Forge 43.63 50.26 Tata Power’s strategic engineering foreign trade policy promotes better use
Ashok Leyland 33.34 36.84 division (SED) division designs, of offset policy.
Premier Explosives Ltd 32.89 28.82 develops and produces strategic defence
Bharat Electronics 25.75 27.11 systems and is a prime contractor to the CONCLUSION
BEML 49.23 26.74 Ministry of Defence for indigenous The defence sector will continue to
Tata Power Company 17.87 21.99 defence production. The stock has remain in the limelight in the coming
Axiscades Engineering Tech. 193.65 16.97 soared 22 per cent in the period under years as the government intends to
Bharat Heavy Electricals 73.67 8.78 consideration. Recently, the Indian Navy promote the industry. The opportunity is
Reliance Naval and Engineering - -6.91 has also entered into a contract with huge for the private sector in India to tap
Returns from 1st Feb - 2017 to 15th Jan 2018 Tata Power SED in November 2017 and the latest policies are framed in such
under the 'Buy and Make' category. a way so as to promote indigenous
domestic defence industry. But on the
Navratna defence PSU Bharat Electronics Ltd (BEL) has more than `2500 crore ground, the situation is not rosy though
worth R&D programmes lined up for the next two years. The company stock has for the private companies as it may take
gawined by over 27 per cent since budget and expects radars, missile systems, time for the policies and budget outlay to
communication and network-centric systems, tank electronics, gun upgrades, translate into earnings for these compa-
electro-optic systems and electronic warfare and avionics system to drive growth nies. However, the momentum is in the
going forward. However, Reliance Naval and Engineering turned out to be an right direction and investors can
exception. The defence shipyard was floundering amidst high debt and the carefully look at the sector for investing
company's stock price declined by over 6 per cent in the last one year since budget. opportunities. DS

Cover Story
How To Profit From The Budget

How will the equity markets react to the Union Budget
2018? Yogesh Supekar and Tanay Loya find out the various
sectors that will be in focus in this budget even as the
DSIJ Research Team recommends buying four stocks,
keeping the Budget in mind.

d
C
s so a r e
l e ct io n
ome January and
a x co l e firs t
t
markets gear up for
the biggest
dire ct rin g t h scal
economic event of
Th e e n t d u rr en t fi
c
the year - Union
Budget. Indeed,
.2 p er t h e c u
there has been no
18 th s o f
n
other major
consistent trigger for the markets than
i n e m o c r o re .
the the Budget over the years.
n 6 la k h
at `6.5
Budget-2018 is by all means a major
event, not only for those tracking stock
markets, but also for all those whose lives
will be affected by what may be land and also earn employment with
announced on February 1 by none other retirement benefits.
than the Finance Minister of India Arun
Jaitley. According to Mustafa Nadeem, CEO,
Epic Research "Stocks related to agri-
There is consensus in the investing world
that the focus of the upcoming budget
will be on the rural economy and the
allied sectors that support the rural
economic growth. What is difficult to
fathom is which sectors and sub-sectors
Kotak Institutional Equities
The equity market has pinned high hopes on increased government spending on
will get support of government spending housing and rural economy, which will drive consumption demand in FY2019.
and by how much. There is also a Stocks in housing, infrastructure and ‘rural’ sectors have jumped sharply in the past
consensus in the market that the current few months in anticipation of higher government spending and subsequent
government will continue to focus on recovery in volumes, revenues and earnings. However, the government’s ability to
infrastructure and banking sectors and spend will depend on its fiscal position. The market’s optimism may be belied if
will take efforts to revive the overall GST revenues were to fail to pick up meaningfully from current levels.
sentiments in the economy.
Budget 2018 – Focus Areas The fact that the Union Finance Minister based products and irrigation-related
In 2017, the Union Budget presented by had his very first pre-budget meeting with businesses are already doing good and
Finance Minister Arun Jaitley was the agriculture groups goes to show the have seen some momentum built up in
focused on eight broad themes – farming intended focus of the government in the the last couple of weeks. The fertiliser
sector, youth, poor and unprivileged coming budget. The growth of agriculture space is doing good and has
health care, infrastructure, prudent fiscal sector in the last four years has been outperformed in recent times with
management, stronger institutions in lower than the growth recorded by the Chambal Fertilizer leading the pack and
financial sector, public services and sector during the tenure of the previous that is on our radar as well."
education . government. Investors should no doubt
focus on the sectoral announcement in Says Tejas Khoday, CEO and CoFounder,
The upcoming Union Budget 2018 may the budget session. It will be interesting to FYERS. "We expect the government to
continue to build on the same broader see if any major announcement will be increase the allocation to MGNREGA
themes, with special focus on made in the space of corporate farming, scheme. It is also very likely that food and
infrastructure sector, rural sector and the where the farmers will be able to generate fertilizer subsidies will increase."
banking industry. income in the form of rent for the leased
Global investors who already have
exposure to Indian equities and those
The government spending in India who are sitting on the sidelines waiting
for the announcement of policy decisions
will be keenly watching on the
reached its all-time high in the third observations specific to the
recapitalisation of banks. For investors, it
quarter of 2017 to `396,284 crore.

will be interesting to see if there will be
any announcement on the merger of the

Cover Story
financially weak PSU banks with the
strong ones. The banking stocks will be
closely tracked on the budget day.
Dinesh Thakkar, CMD, Tradebulls Beyond the banking sector

announcements, investors and credit
ratings agencies will be eyeing the fiscal
Which sectors will be in focus in the coming budget?
deficit target. There is a good chance that
Agriculture and rural initiatives will be a core focus and infrastructure (affordable the fiscal deficit target may be increased
housing), financial (private and PSU banks) and auto and auto ancillaries would to 3.5 per cent of the GDP from the
be in focus this coming budget. current year target of 3.2 per cent. The
increase in fiscal slippage will be closely
Do you expect any negatives for the market to be announced in the
analysed by the financial experts.
budget?
Reintroduction of long term capital gains (LTCG) on equities might be negative This year, there is an increasing
for the market. We don’t expect LTCG to be introduced because of the probability that the government will not
dependence of the government revenues in the equity markets, given the amount be able to maintain its fiscal deficit target
of dis-investments they will have this year, especially ahead of an election year. of 3.2 per cent as was announced in the
However, if it is introduced, there might be minor change so it won’t impact Union Budget 2017, even as the fiscal
equity flows in a big way. situation may turn grim in the upcoming
fiscal. The crude oil prices have already
touched $70 per barrel and it does look
like the crude oil prices may remain stiff
throughout 2018. The rising crude oil
prices will undercut government's efforts
Amar Ambani, to improve its balance of payments, thus

making it difficult to maintain fiscal
discipline.
Partner & Head of Research, IIFL Wealth Management Ltd.
Going forward, the government looks discernibly committed to meet the 3% Divestment of PSUs will thus become the
target for FY19, by increasing the tax revenue collections and controlling wasteful most important factor in the fiscal
expenditure, but even here, a slippage of say 3.1% instead of 3.0% would not management for the coming year.
weaken the government’s strides on the path of fiscal consolidation. The Investors will be keen to know the
government would like to signal lower rates and control its borrowings, and also divestment target for the next fiscal. The
meet the expectations of global rating agencies. credibly enough. We're at the details on how the government intends
lowest level of deficit in almost three decades, barring three or four occasions. The to divest its stake will keep investors,
market duly acknowledges this feat from which it gains commensurate especially institutional investors, excited.
confidence. So, it would not fret over a gap of 10 to 15 basis points. Previous year saw government
successfully and efficiently divesting its
stake through the ETF route.
With a full quarter of the fiscal year

still to go, the fiscal deficit target
Kaustubh Belapurkar, amount for the entire year has already
Head MF research, Morningstar India been exceeded by 12 per cent.
Equitable tax treatments for Fund of Funds – Fund of funds (FoF) are taxed as GST & Budget 2018
debt funds, irrespective of the asset class in which investments are made. For
The government has not been able to
instance, while equity funds enjoy beneficial taxation vis-à-vis debt fund, a fund
generate revenues as expected from the
of equity funds is taxed as a debt fund, thus making it relatively unattractive to
Goods and Services Tax (GST). The
equity investors. Similarly, global funds, whilst investing into global equities, get
monthly collections were reportedly
taxed as debt funds. The global funds can be useful diversification tool for
down to `80,000 crore (October &
investors, but the inferior tax treatment makes it relatively unattractive for
investors. November) which is much below the
figure of `95,000 crore collected in the
initial few months.

GST Collection (` '000 Cr.)
July 923
August
September
907
922 Anuj Puri, Chairman, ANAROCK Property Consultants
October 833 Tax rationalisation on REITs : Listing of REITs has been long pending in India
November 808 and as of now, the first REIT is yet to be listed. Simplification in taxation norms
may give an impetus to the listing that will benefit the entire real estate sector by the
On the direct taxes front, the situation is enhanced participation of type of investors.
much better, and it seems like the target
Higher income tax benefits for the first time home buyers : Presently, a
set for direct tax collection will be
first-time home buyer can claim an additional tax deduction of up to `50,000 in
achieved. However, the direct tax
each financial year under section 80EE of the Act, provided certain conditions are
collections may not be good enough to
fulfilled. This slab of additional tax exemption should be increased so as to revive
compensate for the deficit in the GST
demand by incentivising first time home buyers.
revenues.
Reduction in GST rates : Presently, under-construction properties are levied GST
It is a known fact that the GST revenues of 12%, which is significantly higher than the previous taxes. The government
have come down in the recent months as should strive to make GST a tax neutral proposition so as to help in reviving
large number of commodities were demand in the real estate sector. Clarity and transparency on input tax credit will
moved from the 28 per cent bracket to the also help in rationalising the taxes.
18 per cent bracket. In few cases, the
commodities have been moved to even
lower brackets. There were 178 items that
were moved from the 28 per cent tax slab
to the 18 per cent slab in November 2017.
At least six items were moved from the 18
per cent tax slab to the 5 per cent slab and
eight items were moved from the 12 per
B. J. Maheshwari,
cent slab to the 5 per cent slab. Six items
were moved from the 5 per cent slab to
Whole-time director and CS-cum-CCO, Dwarikesh Sugar Industries
zero per cent slab. These changes have led Tax Rate : In the Finance Bill 2017, the finance minister reduced the corporate tax
to the decline in the GST revenue for the rate from 30% to 25% for small domestic companies in case where the turnover/
government. In spite of such reduction in gross receipts were upto `50 crore.
tax rates on numerous products, there are  It is suggested that planned reduction in corporate tax rates may be
numerous other demands from accompanied with at least 1% rate cut each year may also be extended for all
entrepreneurs requesting reduction in the domestic companies effective from FY2018-19 to boost confidence among tax
GST rates on their products, such as paying industry. It would be appropriate to remove the levy of surcharge and
e-learning educational software. education cess on corporate and non-corporate taxpayers.
 Consistent with the reduction of rates of tax, the rate of DDT may also be
According to Surendra Shinde, CEO of reduced suitably so as to be competitive in terms of the comprehensive tax
Chanakya Net Study Pvt. Ltd, “The burden.
previous tax regime attracted a 6 per cent  Similarly, the income tax rates for unincorporated bodies, i.e. firms, limited
VAT on e-learning educational software liability partnerships (LLPs), etc., should also be reduced to 25% from the
products. In the current tax regime, the current 30%
GST rates on such products is 18 per
cent. Government should reduce the
GST rate on such educational products to
at least 5 per cent, if not lower.” Only time
will tell if the government will reduce the
GST rates for more such products in the
year 2018, which is also going to build up
the pitch for the 2019 Lok Sabha Kunal Bajaj, Founder & CEO, Clearfunds.com
elections.
Clearfunds would like to see tax laws changed to make it easier
As far as low GST revenue collection is
concerned, the ad hoc reduction in rates for wealthier Indians to give back to those who are most in need

Cover Story
Infrastructure, Rural
Ms. Nitasha Shankar, and Financial
Sr. Vice President and Head of Research at YES Securities (I) Ltd
Considering the government’s long term vision as well as the trend set through the
Sectors are likely to
earlier budgets, the focus will remain largely on housing, infrastructure and the rural
economy. Thus, companies catering to these areas will be the key beneficiaries. These
include those involved in construction, cement, building material (tiles, paints,
get attention in
pipes), housing finance, FMCG, consumer durables, among others. terms of priority in
Within infrastructure, areas such as housing, rural connectivity, digital connectivity,
metro projects, waterways, sanitation, urban and rural infrastructure, irrigation, and
rural electrification are likely to continue to be in focus, as was seen through the
Union Budget 2018
sharp rise in allocation towards the same in the previous budget. Within the real has not been the only reason. The
estate space, the focus is likely to be on measures towards boosting the affordable patchwork design of the whole GST
housing through various measures and schemes – including efforts taken to liquidate framework and the cumbersome
inventory in the system as well as providing platforms to raise capital for builders. compliance procedures have also had
some impact on the GST revenue
collection.
The comments on the GST

implementation in the budget will be
extremely important from the point of
George Alexander Muthoot, view of small traders and businessmen.
Any announcement indicating a road
Founder & CEO, Clearfunds.com map for reforming the GST will be
cheered by the investors. Incremental
We expect rural economy, infrastructure and affordable steps taken, if any, to resolve the
compliance issues will be closely watched
housing to have key impetus in the last full budget of the in the budget session.
current government. We also expect the TDS for NBFC TAXATION
interest should be raised from the current `5,000 Among the most pertinent and
unarguably the most important
(NBFC)/`10,000 (bank), especially as the limits were last announcements that corporate India will
be watching out for will be the “promise
set two decades ago in 1997. to rationalise corporate tax rates” and
“how the government will be prioritising
its expenditure”. These announcements
will send a signal to the market about the
government's long-term goals and its
strategy for economic revival. However,
Soumen Chatterjee,
the markets will cheer any kind of
rationalisation of corporate taxes, but the
industry captains will be keeping their
Head of Research, Guiness Securities fingers crossed. The corporate tax rate
was cut down to 29 per cent in the 2015
We don’t see LTCG coming in this budget; however, there budget for those companies with total
turnover of up to `5 crore. The tax rate
may be some probability of STCG tax definition being was reduced to 25 per cent for the newly
tweaked to make it three years, but that will only come with incorporated domestic firms in the 2016
budget. Now, corporate India will be
STT rates being rationalised and parity in tax treatment. expecting rationalisation of taxes for

bigger companies. The US has already
set the tone for economies across the
world to reduce taxes and India may
follow suit.
R.M. Vishakha, MD & CEO, IndiaFirst Life Insurance
For those who invest in equities, there
may some tweaks in the definition of 5% tax rates for term life insurance products : The government demonstrated a
Long-Term Capital Gains (LTCG) and hands-on approach to financial inclusion by launching PMJJBY, the GST-exempt
Short-Term Capital Gains (STCG) tax. insurance scheme. Reinforcing this intent will be lowered GST tax rates on term
As of now, the definition of long term is products, with the life insurance sector and the administration jointly working
any investment held for more than one towards enhanced pan-India penetration.
year. There is a possibility that the long Move to centralised tax regime : The core operations of most insurers happens
term could be termed as any investment out of one central hub. A large part of compliance and business challenges can be
held for more than three years and any addressed, if the current requirement of state-wise, decentralised registration
investment sold before three years to be could move towards centralisation, akin to the service tax regime.
considered as short term. The STCG tax
stands at 15 per cent currently.
Sensex returns over the last five years have been

uncertain during the one-month pre-budget and
post-budget periods.
Sensex Performance during Budget Period
Year Sensex returns Sensex returns Rajesh Bhatia, Global CFO, Uflex
One month One Month The Government of India has imposed anti-dumping duty on aluminium foil
post-Budget pre-Budget being imported from China–a country that accounts for almost 65-70% of the
2017 5.49% 3.00% global aluminium foil production. Uflex has recently operationalised its aseptic
2016 -8.12% 8.25% liquid packaging manufacturing plant at Sanand, Gujarat, reaffirming its
2015 -0.67% -6.48% commitment towards the government’s 'Make in India' initiative. One of the layers
2014 -0.83% 0.58% of the aseptic liquid packaging is aluminium foil, which imparts high barrier
2013 - 6.58% 0.30% properties required for protecting the liquid being packed and imports thereof are
subjected to the anti-dumping duty.
Ironically as it may sound, similar anti-dumping duty is not being levied on the
Conclusion:- import of finished aseptic liquid packaging from China, which also has a layer of
Investors have all the right reasons to aluminium foil and is, therefore, dealing a body blow to the manufacturers of
remain bullish on the markets when it aseptic liquid packaging in India, who are subjected to anti-dumping duty when
comes to one of the major economic they import aluminium foil from China. Aseptic liquid packaging manufacturers
events of the year 2018 . The Budget that in India are at a clear disadvantage despite huge investments made in the state-of-
will unfold in a couple of weeks from the art manufacturing plants. We urge the Government of India for instituting a
now is all set to be an expansionary one. level playing field by imposing similar anti-dumping duty on the aluminium
While the agriculture, banking and component of the aseptic liquid packaging being imported from China.
infrastructure sectors will remain in the
limelight throughout the budget session,
investors can expect the budget to boost
their sentiments.
While the government will attempt to

pacify farmers, small traders and
entreprenuers, investors can expect Anupam Arya, Director Fabriclore
higher budgetary allocation to the "If we wish to compete with mass-produced synthetics and highlight the varied
fertiliser sector and announcement of local produce of different states, naturally produced or obtained yarns need tax
some benefits to the first-time home relief. Usage of naturally, locally produced dyes, yarns, and processes applied or job
buyers. Without getting carried away by work availed towards completing natural fibres or naturally produced fabrics,
the Budget hoopla, investors can stick to should be tax exempt to stand a fighting chance against the synthetically produced,
their high conviction stocks in their core cheaper stuff."
portfolio.

Cover Story
Ambuja Cement ZEE Entertainment
CMP : `276.60 CMP : `614.20
BSE CODE : 500425 BSE CODE : 505537
Face Value : `2 Face Value : `1
BSE Volume : 157,039 BSE Volume : 114,999
A Z
mbuja Cements, set up in 1986, has grown ten-fold in ee Entertainment Enterprises Ltd is a part of the media
the last decade. With a cement capacity of over 18.5 industry in India. It owns multi-linguistic television
million tonnes, it is among the largest and the most channels under the Zee brand. It also distributes
profitable cement companies in India. The company also has feature films and manages live entertainment events. The
one of the lowest capital cost per tonne of cement in the company operates in the content and broadcasting segment
industry. Ambuja Cements was the first company in India to with operations in over 170 countries. It offers content in
introduce bulk cement movement by sea. An all-weather port multiple languages and offers about 38 international and over
of the company is situated at Muldwarka, Gujarat, which is 8 30 domestic channels. Recently, Zee announced the
kms from the company’s Ambujanagar plant and handles ships acquisition of 9X Media’s six music channels for `1.6 billion.
with 40,000 DWT. These six channels across four languages will allow Zee to
expand its portfolio from the current 33 channels to 39
Recently, the company was ranked 7th by the internationally channels.
renowned Dow Jones Sustainability Index in the construction
material category, making it the only Indian manufacturer to be On the financial front, the net sales of the company increased
awarded such a high rank. 5.99 per cent to `1351.47 crore in the second quarter of FY18,
as against `1275.08 crore in the same quarter last year. The
On the financial front, the net sales of the company increased company’s PBDT increased 11.51 per cent to `559.96 crore in
14.18 per cent to `2319.64 crore in the second quarter of FY18 the second quarter of FY18 on a yearly basis. The company’s
as against `2031.44 crore in the same quarter last year. The net profit also improved 5.89 per cent to `347.04 crore in Q2
company’s PBDT decreased 6 per cent to `476.25 crore in the FY18 as against a net profit of `327.74 crore in Q2 of the
second quarter of FY18 on a yearly basis. The company’s net previous fiscal.
profit also declined marginally 1.9 per cent to `272.42 crore in
Q2 FY18 as against a net profit of `277.02 crore in Q2 of the On the valuation front, the company maintained a PE ratio of
previous year. 39.56x as against its peer Sun TV Network (39.79x). The
company’s return on equity (RoE) and return on capital
On the valuation front, the company maintained a PE ratio of employed (RoCE) stood at 22.57 per cent and 28.61 per cent,
32.10x as against its peer ACC (40.71x). The company’s return respectively. The company has a debt-to-equity ratio of 0.29x.
on equity (RoE) and return on capital employed (RoCE) stood
at 6.69 per cent and 12.89 per cent, respectively. The company is We believe Zee’s efforts to widen TV genre/language presence;
virtually debt-free and has been maintaining a healthy dividend increased focus on movie/music production and events
payout of 48.97 per cent. business would allow it to sustain healthy earnings growth
over the next few years. Also, the media and entertainment
The Supreme Court, in December, lifted the ban on the use of industry is set to grow well in the coming years due to the
pet coke in cement production, which augurs well for the changing consumption pattern, increasing penetration of
company. Also, considering the continuous impetus to the television and digital media and higher surplus income with
infrastructure sector in the budget, we recommend our the consumers. Zee Entertainment’s stock stands to benefit
investors to BUY the stock. from this trend.
Last Five Quarters (`/Cr) Last Five Quarters (`/Cr)
Sept-17 June-17 Mar-17 Dec-16 Sept-16 Sept-17 June-17 Mar-17 Dec-16 Sept-16
Total Income 2319.64 3260.22 2922.4 2231.03 2299.24 Total Income 1351.47 1302.57 1198.9 1275.85 1275.08
Other Income 153.11 55.99 101.94 41.08 173.58 Other Income 57.04 382.3 69.14 -16.49 164.67
Operating Profit 507.5 707.01 496.03 370.16 481.6 Operating Profit 558.31 844.56 509.76 486.73 508.42
Interest 31.25 16.5 37.7 13.63 19.78 Interest -1.65 14.3 107.69 6.23 6.24
Net Profit 272.42 392.23 246.54 175.88 247.55 Net Profit 347.04 576.52 262.07 273.89 327.74
Equity 397.13 397.13 397.13 397.13 397.13 Equity 96.04 96.04 96.04 96.04 96.04

TPL Plastech Swelect Energy
CMP : `691 CMP : `481
BSE CODE : 526582 BSE CODE : 532051
Face Value : `10 Face Value : `10
BSE Volume : 193 BSE Volume : 2,009
T S
PL Plastech Ltd (TPL) is a subsidiary of Time welect Energy Systems is a solar products company and
Technoplast. The company commenced operations in a leading solar project implementer. The company has
1995 and has become the second largest manufacturer of a strong presence in global energy market for over
drums, especially bulk packaging. TPL also manufactures 30 years. With a manufacturing facility of 105 MW, the
polymer drums and pipes. The company has manufacturing company operates multiple revenue streams in the solar
facilities at 5 locations and has a current capacity of about photovoltaic space in terms of product sale, projects and
28,000 MT. The company employs over 280 personnel. power sale.
Time Technoplast Ltd. (TTL) acquired 75 per cent equity stake The acquisition of HHV ST solar modules and the expansion of
in the company in 2006. TPL has a huge client base catering to the Salem plant gives Swelect a distinct status as one of the very
more than 225 customers in chemical and petrochemical few companies in India to have total backward integration in
industry. TPL’s clients include Godrej Industries, Grasim, Gulf, the manufacturing process. This has given the company greater
Petrochem, L&T, Jubilant, Sanstar , UPL, Shapoorji Pallonji, market visibility as an EM.
NCC etc.
On the financial front, the net sales of the company increased
On the financial front, the net sales of the company increased 68.83 per cent to `47.24 crore in the second quarter of FY18, as
7.65 per cent to `45.47 crore in the second quarter of FY18, as against `27.98 crore in the same quarter last year. However, the
against `42.24 crore in the same quarter last year. The company’s company’s PBDT decreased 32.32 per cent to `7.79 crore in the
PBDT increased 22.01 per cent to `4.49 crore in the second second quarter of FY18 on a yearly basis. The company’s net
quarter of FY18 on a yearly basis. The company’s net profit also profit also declined from `7.71 crore in Q2FY17 to `3.63 crore
improved 12.59 per cent to `3.04 crore in Q2 FY18 as against a in Q2FY18.
net profit of `2.70 crore in the Q2 of the previous year.
On the valuation front, the company has a PE ratio of 17.70x.
On the valuation front, the company has a PE ratio of 49.40x. Also, with a debt-to-equity ratio of 0.10x, the company is
The company’s return on equity (RoE) and return on capital virtually debt-free. Swelect has been maintaining a healthy
employed (RoCE) stood at 19.68 per cent and 23.79 per cent, dividend payout of 24.84 per cent. The company is also
respectively. The company has a debt-to-equity ratio of 0.60x expected to give good quarterly numbers.
and a price-to-book value of 8.36x. TPL has been maintaining a
healthy dividend payout of 21.29 per cent. With the Central and state governments promoting renewable
energy and increased awareness for sustainable energy, the
Industrial packaging industry is largely dependent on future outlook for the renewable industry in general and
chemicals and pharmaceuticals; building and construction Swelect in particular looks positive.
industry; lubricants; and bulk food and beverages, all of which
are expected to be in favour in the upcoming budget. Also, with Also, Swelect, with its long term business visibility and brand
the government giving priority to water and sewerage recall in the market, is well-positioned to become a pioneer in
infrastructure development, we expect growth in the pipe the renewable energy market. We recommend our reader-
segment of the company. We recommend a BUY on the scrip. investors to BUY the scrip.
Last Five Quarters (`/Cr) Last Five Quarters (`/Cr)
Sept-17 June-17 Mar-17 Dec-16 Sept-16 Sept-17 June-17 Mar-17 Dec-16 Sept-16
Total Income 45.47 43.19 49.38 43.09 42.24 Total Income 42.34 42.66 78.74 28.23 27.98
Other Income 0 0 0.01 0 0.1 Other Income 9.46 10.11 13.02 9.55 12.2
Operating Profit 5.57 5.55 5.94 5.35 4.8 Operating Profit 9.21 13.61 22.14 10.07 12.92
Interest 1.08 1.09 1.06 1.11 1.12 Interest 1.41 1.36 1.33 1.31 1.41
Net Profit 3.04 2.43 3.34 2.5 2.7 Net Profit 3.63 7.3 13.01 4.79 7.71
Equity 7.8 7.8 7.8 7.8 7.8 Equity 10.11 10.11 10.11 10.11 10.11

MF Data Bank
DSIJ Mutual Fund Ranking:
The Unique, Forward-Looking Methodology,
To Make Your Investments Grow Fastest
T
he following table lists top-ranked equity funds based on Therefore, this list is quite dynamic and reflects the best return
DSIJ's proprietary research methodology. Having a potential of the funds in the next one year. We have not
pioneering legacy of more than 32 years in equity differentiated between different styles of investments and all the
research, we have deployed our research experience and funds are ranked based purely on their return potential. You
expertise on the listed companies to ascertain expected returns can use this ranking to create your own mutual fund portfolio.
on the underlying stocks of each equity fund. We have Depending on your risk profile, return expectations and overall
evaluated the underlying portfolio of stocks of each fund and asset allocation, you can add best performing funds in
ranked them based on their expected portfolio returns. This particular category to your portfolio.
helped us to rank the funds without getting biased about the
historical returns of the funds. This way we are also able to rank This ranking can also be used for reviewing different holdings
newly launched funds that are not rated by others due to their in your fund portfolio. Hence, a consistently laggared
short duration of existence. To make it more robust we have performer of a particular category can be looked at as 'Switch'
used `25 crore as minimum AUM to qualify for our ranking. or 'Exit'.
Every day, we evaluate all the equity funds based on changed All the relevant data, including the portfolio of equity funds,
ratings of the underlying stocks and change in their prices. has been sourced from insight.dionglobal.in
Rank AUM Expense Returns (%)

(17/01/18) Fund NAV (`) (` Cr) Category Ratio (%) 1 Month 6 Months 3 Years
1 Reliance ETF PSU Bank BeES (Growth) 394.05 193 Equity - Banking 0.49 -5.18 0.38 -5.44
2 Kotak PSU Bank ETF (Growth) 355.33 206 Equity - Banking 0.49 -5.14 0.43 -6.08
3 Reliance ETF Bank BeES (Growth) 2636.29 2,607 Equity - Banking 0.20 2.08 8.44 10.78
4 Kotak Banking ETF (Dividend) 264.98 3,899 Equity - Banking 0.20 2.08 8.43 11.29
5 SBI ETF Nifty Bank (Growth) 261.25 760 Equity - Banking - 2.08 6.97 -
6 LIC MF Banking & Financial Services Fund (Growth) 12.38 83 Equity - Banking 3.00 -0.78 3.84 -
7 Mahindra Kar Bachat Yojana (Growth) 12.49 277 Equity - Tax Planning 2.35 1.79 7.22 -
8 ICICI Prudential Banking and Financial Services (Gr.) 62.06 2,789 Equity - Banking 2.38 2.65 6.01 17.49
9 Invesco India PSU Equity Fund (Growth) 19.70 110 Equity - Others 2.69 -0.35 6.31 12.73
10 HDFC Premier Multicap Fund - Regular Plan (Gr.) 58.15 331 Equity - MultiCap 2.57 3.12 10.51 9.47
11 Sundaram Financial Services Opportunities Fund 40.34 163 Equity - Banking 2.89 2.30 5.09 10.52
(Gr.)
12 Sundaram Financial Services Opportunities Fund - 42.74 163 Equity - Banking 2.79 2.47 5.84 11.25
Institutional Plan (Growth)
13 Mahindra Mutual Fund Badhat Yojana (Growth) 11.40 224 Equity - MultiCap 2.61 2.32 9.48 -
14 Invesco India Dynamic Equity Fund (Growth) 28.79 738 Equity - LargeCap 2.44 1.59 7.95 11.64
15 LIC MF Growth Fund (Growth) 25.32 257 Equity - LargeCap 2.86 2.12 5.70 7.28
16 SBI PSU Fund (Growth) 12.53 235 Equity - Others 2.56 -1.06 6.19 7.00
17 L&T Tax Saver Fund (Growth) 39.70 31 Equity - Tax Planning 2.66 4.14 10.00 15.78
18 HDFC Large Cap Fund - Regular Plan (Growth) 113.59 1,327 Equity - LargeCap 2.20 1.96 6.36 8.16
19 Kotak Select Focus Fund - Regular Plan (Growth) 33.73 15,935 Equity - MultiCap 1.97 2.41 6.98 13.60
20 Invesco India Banking Fund (Growth) 53.58 127 Equity - Banking 2.66 2.27 7.40 15.26
21 Union Focussed Largecap Fund - Regular Plan 10.68 362 Equity - LargeCap 2.82 2.01 4.91 -
(Growth)
22 Aditya Birla Sun Life Banking And Financial Services 28.33 1,530 Equity - Banking 2.45 2.31 7.43 18.07
Fund (Growth)
Equity AUM, as a percentage of India’s market capitalization, remained at 5.1 per cent
at the end of CY17

23 SBI Pharma Fund (Growth) 131.61 1,089 Equity - Pharma 2.24 3.36 1.90 3.19
24 DHFL Pramerica Large Cap Fund - Wealth Plan 34.33 393 Equity - LargeCap 2.94 3.43 6.28 9.62
(Growth)
25 DHFL Pramerica Large Cap Fund (Growth) 164.27 393 Equity - LargeCap 2.52 3.41 6.16 9.49
26 Mahindra Mutual Fund Dhan Sanchay Yojana (Gr.) 11.21 332 Hybrid - Equity Oriented 2.54 0.71 3.56 -
27 ICICI Prudential Focused Bluechip Equity Fund - 44.74 15,653 Equity - LargeCap 2.16 2.73 11.16 13.01
Institutional Plan (Growth)
28 ICICI Prudential Focused Bluechip Equity Fund (Gr.) 41.06 15,653 Equity - LargeCap 2.11 2.65 10.61 11.93
29 Aditya Birla Sun Life Frontline Equity Fund (Growth) 224.34 19,936 Equity - LargeCap 2.11 3.32 7.72 11.56
30 Franklin India Taxshield (Growth) 565.35 3,417 Equity - Tax Planning 2.30 2.18 8.74 10.97
31 UTI Banking Sector Fund (Growth) 100.83 686 Equity - Banking 2.69 3.56 7.50 12.92
32 Reliance Banking Fund (Growth) 272.19 3,059 Equity - Banking 2.04 4.05 6.61 13.85
33 JM Basic Fund (Growth) 33.77 184 Equity - Others 3.00 2.75 12.22 17.38
34 Reliance CPSE ETF (Growth) 30.43 7,865 Equity - LargeCap 0.07 2.30 14.65 6.91
35 Franklin India Balanced Fund (Growth) 117.15 2,142 Hybrid - Equity Oriented 2.57 1.18 6.67 9.86
36 DSP BlackRock Equal Nifty 50 Fund (Growth) 10.26 144 Equity - LargeCap 0.92 3.19 0.00 -
37 Franklin India Flexi Cap Fund (Growth) 82.04 2,954 Equity - MultiCap 2.28 2.01 9.73 10.47
38 Aditya Birla Sun Life Top 100 Fund (Growth) 59.24 3,703 Equity - LargeCap 2.25 2.67 7.69 11.19
39 Kotak Mahindra 50 Unit Scheme - Regular Plan (Gr.) 228.16 1,407 Equity - LargeCap 2.16 3.31 7.13 10.31
40 IDBI Focused 30 Equity Fund (Growth) 10.21 311 Equity - LargeCap 3.26 1.69 0.00 -
41 Franklin India Bluechip Fund - Growth (Growth) 469.67 8,962 Equity - LargeCap 2.19 3.28 7.80 10.54
42 Franklin India Bluechip Fund - Dividend (Dividend) 41.76 8,962 Equity - LargeCap 2.19 -5.73 -1.61 -1.88
43 Essel Equity Fund (Growth) 23.17 184 Equity - MultiCap 2.92 1.82 5.67 12.25
44 UTI Master Equity Plan Unit Scheme (MEPUS) 108.88 1,927 Equity - Tax Planning 2.12 2.65 8.09 10.15
(Dividend)
45 IDFC Focused Equity Fund (Growth) 40.87 965 Equity - LargeCap 2.40 2.35 13.27 13.75
46 JM Multi Strategy Fund (Growth) 31.58 156 Equity - MultiCap 3.05 1.57 6.89 13.23
47 SBI Blue Chip Fund (Growth) 39.04 16,944 Equity - LargeCap 1.97 2.50 7.88 13.11
48 SBI Equity Savings Fund (Growth) 12.63 1,048 Hybrid - Equity Oriented 2.03 2.15 4.48 -
49 IDBI India Top 100 Equity Fund (Growth) 24.45 461 Equity - MultiCap 3.08 1.83 3.65 8.96
50 HDFC Infrastructure Fund - Regular Plan (Growth) 22.66 1,380 Equity - Infrastructure 2.28 5.84 12.86 10.57
51 Tata Banking and Financial Services Fund (Growth) 17.28 261 Equity - Banking 2.75 2.46 2.52 -
52 ICICI Prudential Top 100 Fund (Growth) 337.89 2,986 Equity - MultiCap 2.36 3.35 10.40 12.02
53 Invesco India Business Leaders Fund (Growth) 27.42 160 Equity - LargeCap 2.62 2.50 7.15 10.41
54 Baroda Pioneer Banking and Financial Services Fund 21.18 50 Equity - Banking 3.10 1.83 4.18 7.96
(Growth)
55 Canara Robeco Large Cap + Fund (Growth) 22.85 118 Equity - LargeCap 2.66 2.65 7.28 9.15
56 ICICI Prudential Select Large Cap Fund (Growth) 29.76 787 Equity - LargeCap 2.68 2.48 8.97 8.10
57 IDFC Equity Fund (Growth) 32.34 290 Equity - LargeCap 2.54 2.94 8.64 9.44
58 Franklin India High Growth Companies Fund (Gr.) 41.67 7,638 Equity - MultiCap 2.32 2.33 12.43 12.39
59 SBI Magnum Comma Fund (Growth) 43.36 357 Equity - Others 2.52 8.13 20.12 21.07
60 Kotak Taxsaver - Regular Plan (Growth) 43.15 721 Equity - Tax Planning 2.38 2.09 6.57 11.95
61 ICICI Prudential Equity Income Fund (Growth) 12.91 2,969 Hybrid - Equity Oriented 1.42 1.02 4.20 8.42
62 Tata Large Cap Fund - Regular Plan (Growth) 216.98 842 Equity - LargeCap 2.54 3.45 8.43 10.12
63 Principal Large Cap Fund (Growth) 62.88 331 Equity - LargeCap 2.55 3.00 7.91 10.48
64 HDFC Prudence Fund - Regular Plan (Growth) 528.74 36,395 Hybrid - Equity Oriented 2.26 3.27 8.14 11.56
65 Reliance Quant Plus Fund (Growth) 25.47 30 Equity - LargeCap 1.19 2.47 6.40 7.90
66 HDFC Growth Fund - Regular Plan (Growth) 192.08 1,217 Equity - MultiCap 2.29 3.64 10.69 12.54
67 Edelweiss Dynamic Equity Advantage Fund (Growth) 22.76 412 Hybrid - Equity Oriented 2.55 2.26 5.31 7.85
Equity AUM rises for 12th consecutive month in the month of December 2017,
total equity AUM is up 64 per cent in CY17

MF Data Bank
68 SBI Magnum Equity Fund (Growth) 96.51 2,171 Equity - LargeCap 2.09 2.14 5.40 9.21
69 L&T India Large Cap - Regular Plan (Growth) 26.38 400 Equity - LargeCap 2.50 3.32 6.68 8.58
70 Aditya Birla Sun Life India Reforms Fund (Growth) 20.83 146 Equity - MultiCap 2.67 0.67 10.97 13.54
71 Reliance Top 200 Fund (Growth) 33.80 6,381 Equity - LargeCap 1.99 3.68 11.16 12.11
72 Franklin India Opportunities Fund (Growth) 78.41 679 Equity - MultiCap 2.92 4.57 12.90 12.30
73 Aditya Birla Sun Life Index Fund (Growth) 104.65 181 Equity - LargeCap 0.75 3.36 7.77 7.98
74 JM Equity Fund (Growth) 65.22 5,941 Equity - LargeCap 2.39 2.64 4.74 5.73
75 JM Balanced Fund - Dividend (Dividend) 12.71 2,509 Hybrid - Equity Oriented - 2.32 4.36 -22.10
76 JM Balanced Fund (Growth) 45.45 2,509 Hybrid - Equity Oriented - 2.32 4.36 6.42
77 Franklin India Index Fund - NSE Nifty Plan (Growth) 84.57 257 Equity - LargeCap 1.07 3.44 7.87 8.09
78 SBI Nifty Index Fund (Growth) 91.02 259 Equity - LargeCap 0.62 3.48 8.18 8.17
79 HDFC Nifty ETF (Growth) 1093.62 367 Equity - LargeCap 0.05 3.55 8.58 -
80 UTI Nifty Index Fund (Growth) 68.74 669 Equity - LargeCap 0.20 3.54 8.53 8.84
81 Reliance Index Fund - Nifty Plan (Growth) 17.81 141 Equity - LargeCap 0.85 3.47 8.01 7.88
82 IDBI Nifty Index Fund (Growth) 19.74 217 Equity - LargeCap 2.00 3.36 7.30 7.18
83 Reliance ETF Nifty BeES (Growth) 1103.60 1,122 Equity - LargeCap 0.10 3.55 8.59 8.62
84 ICICI Prudential Nifty iWIN ETF (Growth) 109.87 1,228 Equity - LargeCap 0.05 3.55 8.53 8.22
85 IDFC Nifty Fund (Growth) 21.76 99 Equity - LargeCap 0.25 3.55 8.32 8.72
86 ICICI Prudential Nifty Index Fund (Growth) 102.71 304 Equity - LargeCap 0.91 3.45 7.95 8.30
87 HDFC Index Nifty Plan - Regular Plan (Growth) 95.80 298 Equity - LargeCap 0.30 3.49 8.37 8.80
88 SBI ETF Nifty 50 (Growth) 108.56 26,964 Equity - LargeCap - 3.55 8.58 -
89 UTI Nifty Exchange Traded Fund (Growth) 1104.45 4,869 Equity - LargeCap - 3.58 8.66 -
90 JM Core 11 Fund (Growth) 8.91 35 Equity - MultiCap 3.07 1.68 10.16 14.67
91 Kotak Nifty ETF (Growth) 108.23 685 Equity - LargeCap 0.10 3.54 8.54 8.30
92 DSP BlackRock Balanced Fund (Growth) 150.80 6,543 Hybrid - Equity Oriented 2.47 2.13 7.68 12.05
93 DHFL Pramerica Balanced Advantage Fund - Wealth 30.79 231 Hybrid - Equity Oriented 2.56 2.70 5.16 6.19
Plan (Growth)
94 DHFL Pramerica Balanced Advantage Fund (Growth) 68.07 231 Hybrid - Equity Oriented 2.57 2.69 5.18 6.19
95 Aditya Birla Sun Life International Equity - Plan B (Gr.) 19.01 103 Equity - Midcap 2.68 3.30 8.85 10.23
96 Canara Robeco Equity Diversified (Growth) 125.50 817 Equity - MultiCap 2.38 2.94 9.27 9.59
97 ICICI Prudential Dynamic Plan (Growth) 266.39 9,258 Equity - MultiCap 2.29 3.34 10.95 12.17
98 ICICI Prudential Dynamic Plan - Institutional Option 44.50 9,258 Equity - MultiCap 1.18 3.45 11.58 13.16
- I (Growth)
99 ICICI Prudential Dynamic Plan - Institutional Plan 26.16 9,258 Equity - MultiCap 1.18 3.45 11.58 13.16
(Growth)
100 HSBC Equity Fund (Growth) 205.66 670 Equity - LargeCap 2.46 3.51 7.28 10.79
101 LIC MF Exchange Traded Fund - Nifty 50 (Growth) 109.13 456 Equity - LargeCap 0.10 3.58 8.54 -
102 HDFC Top 200 Fund - Regular Plan (Growth) 470.06 15,775 Equity - LargeCap 2.08 3.60 8.39 10.12
103 Edelweiss Large Cap Advantage Fund - Plan B 33.91 159 Equity - MultiCap 1.30 3.31 8.84 9.97
(Growth)
104 Canara Robeco Balance (Growth) 149.09 1,391 Hybrid - Equity Oriented 2.46 2.02 6.67 10.18
105 Edelweiss Large Cap Advantage Fund - Plan C (Gr.) 33.47 159 Equity - MultiCap 1.30 3.29 8.83 9.96
106 Edelweiss Large Cap Advantage Fund (Growth) 33.74 159 Equity - MultiCap 1.30 3.32 8.85 9.97
107 Aditya Birla Sun Life Nifty ETF (Growth) 114.08 217 Equity - LargeCap 3.61 8.69 9.26
108 Motilal Oswal MOSt Focused Multicap 35 Fund (Gr.) 27.34 10,508 Equity - MultiCap 2.12 2.26 10.69 20.04
109 DSP BlackRock Tax Saver Fund (Growth) 48.72 3,571 Equity - Tax Planning 2.51 2.97 11.38 15.17
110 Aditya Birla Sun Life Balanced 95 Fund (Growth) 770.02 12,827 Hybrid - Equity Oriented 2.26 1.34 6.59 11.16
111 Tata Balanced Fund - Regular Plan (Growth) 212.05 6,565 Hybrid - Equity Oriented 2.11 3.09 4.85 9.27
112 ICICI Prudential Balanced Fund (Growth) 131.31 23,954 Hybrid - Equity Oriented 2.22 2.28 8.78 12.55
113 Canara Robeco Infrastructure (Growth) 53.17 156 Equity - Infrastructure 2.67 1.94 11.40 12.63
Mahindra Mutual Fund has proposed to change the name of Mahindra Mutual Fund Alp-Samay
Bachat Yojana to Mahindra Low Duration Bachat Yojana with effect from January 30, 2018.

114 L&T Dynamic Equity Fund - Regular Plan (Growth) 22.87 478 Hybrid - Equity Oriented 2.46 1.37 4.44 4.55
115 Tata Resources & Energy Fund (Growth) 16.14 53 Equity - Others 2.91 2.66 12.11 -
116 ICICI Prudential Exports and Other Services Fund 60.53 714 Equity - Others 2.70 3.79 14.12 13.00
(Growth)
117 Shriram Equity and Debt Opportunities Fund (Gr.) 16.13 4,326 Hybrid - Equity Oriented 2.30 1.70 5.23 6.90
118 ICICI Prudential Balanced Advantage Fund (Growth) 33.55 23,316 Hybrid - Equity Oriented 2.20 0.87 6.58 10.43
119 SBI Magnum Tax Gain Scheme 93 (Growth) 151.57 6,270 Equity - Tax Planning 2.00 4.35 9.30 10.99
120 Essel Long Term Advantage Fund - Regular Plan 14.52 39 Equity - Tax Planning 2.80 3.00 8.44 -
(Growth)
121 ICICI Prudential Nifty 100 iWIN ETF (Growth) 116.73 38 Equity - LargeCap 0.41 3.61 9.00 10.25
122 Franklin Build India Fund (Growth) 43.77 1,183 Equity - Infrastructure 2.66 1.84 13.54 15.19
123 Union Tax Saver Scheme (Growth) 24.80 188 Equity - Tax Planning 2.68 4.11 9.54 5.77
124 Sundaram Select Focus (Growth) 167.60 570 Equity - LargeCap 2.68 2.55 7.94 9.20
125 Motilal Oswal Most Focused Long Term Fund (Gr.) 18.22 738 Equity - Tax Planning 2.61 3.05 10.64 -
126 Aditya Birla Sun Life Advantage Fund (Growth) 442.82 5,190 Equity - MultiCap 2.28 0.68 9.60 15.35
127 L&T Equity Fund - Regular Plan (Growth) 85.81 2,916 Equity - MultiCap 2.05 5.68 11.74 11.44
128 DSP BlackRock Equity Fund (Growth) 39.60 2,514 Equity - MultiCap 2.39 3.41 12.33 11.76
129 LIC MF Exchange Traded Fund - Nifty 100 (Growth) 113.35 298 Equity - LargeCap 0.25 3.71 9.32 -
130 HDFC TaxSaver - Regular Plan (Growth) 557.62 7,124 Equity - Tax Planning 2.19 3.20 10.68 11.09
131 Franklin India Prima Plus (Growth) 605.70 11,908 Equity - MultiCap 2.21 3.75 9.83 12.14
132 Union Equity Fund (Growth) 19.26 208 Equity - MultiCap 2.67 3.05 8.14 5.40
133 Reliance Regular Savings Fund - Balanced (Growth) 56.26 10,498 Hybrid - Equity Oriented 1.98 3.00 8.63 12.85
134 Aditya Birla Sun Life Special Situations Fund (Gr.) 27.01 179 Equity - MultiCap 2.63 5.58 15.29 16.89
135 SBI Banking & Financial Services Fund (Growth) 15.65 484 Equity - Banking 2.47 3.76 8.55 -
136 UTI Infrastructure Fund (Growth) 59.52 1,693 Equity - Infrastructure 2.31 3.71 12.62 11.00
137 Kotak Balance - Regular Plan (Growth) 25.07 2,209 Hybrid - Equity Oriented 2.09 2.42 6.23 10.84
138 DSP BlackRock Focus 25 Fund (Growth) 23.24 3,047 Equity - LargeCap 2.47 2.93 7.40 10.99
139 Kotak Equity Savings Fund - Regular Plan (Growth) 13.35 1,335 Hybrid - Equity Oriented 2.03 1.11 5.10 8.71
140 DSP BlackRock Top 100 Equity Fund (Growth) 203.34 3,539 Equity - LargeCap 2.31 2.36 5.20 8.00
141 LIC MF Exchange Traded Fund - Sensex (Growth) 357.10 337 Equity - LargeCap 0.10 3.99 8.99 -
142 IDFC Balanced Fund (Growth) 11.79 1,226 Hybrid - Equity Oriented 2.22 2.49 5.31 -
143 Reliance Media & Entertainment Fund (Dividend) 24.96 96 Equity - Others 2.68 7.23 14.04 -1.27
144 Reliance Media & Entertainment Fund (Growth) 72.43 96 Equity - Others 2.68 7.23 14.05 9.39
145 Kotak Classic Equity - Regular Plan (Growth) 49.02 129 Equity - LargeCap 2.66 2.47 11.35 11.07
146 Canara Robeco Equity Tax Saver (Growth) 60.30 877 Equity - Tax Planning 2.36 3.04 8.77 8.95
147 Reliance NRI Equity Fund (Growth) 88.76 93 Equity - LargeCap 2.68 4.59 7.16 10.46
148 Kotak Opportunities Fund - Regular Plan (Growth) 119.56 2,158 Equity - MultiCap 2.10 2.81 7.40 13.81
149 Canara Robeco F.O.R.C.E Fund (Growth) 37.47 165 Equity - Others 2.78 3.68 9.91 13.78
150 LIC MF Mid Cap Fund (Growth) 15.36 263 Equity - MidCap 2.87 4.37 11.40 -
151 ICICI Prudential Infrastructure Fund (Growth) 57.47 1,753 Equity - Infrastructure 2.39 4.95 14.83 11.02
152 DHFL Pramerica Diversified Equity Fund (Growth) 13.79 91 Equity - LargeCap 2.70 4.23 7.65 -
153 ICICI Prudential MidCap Fund (Growth) 107.52 1,449 Equity - MidCap 2.43 5.46 17.95 15.37
154 ICICI Prudential Dividend Yield Equity Fund (Gr.) 18.81 247 Equity - MidCap 2.57 4.67 9.36 14.05
155 Quantum Long Term Equity Fund - Regular Plan 54.62 846 Equity - LargeCap 1.46 4.62 8.12 -
(Growth)
156 HDFC Balanced Fund - Regular Plan (Growth) 152.56 18,027 Hybrid - Equity Oriented 1.96 2.44 7.06 12.49
157 Quantum Tax Saving Fund - Regular Plan (Growth) 54.30 67 Equity - Tax Planning 1.46 4.97 8.53 -
158 UTI Mastershare (Growth) 117.84 4,824 Equity - LargeCap 2.32 3.88 9.26 9.29
159 SBI Magnum Multi Cap Fund (Growth) 49.02 3,748 Equity - MultiCap 2.04 3.38 12.17 16.17
160 Tata Dividend Yield Fund - Regular Plan (Growth) 79.52 329 Equity - MultiCap 2.74 5.49 5.60 11.74
For the year 2017, equity AUM is up 24 per cent, as against Nifty’s rise of 18 per cent

MF Data Bank
161 IDFC Sterling Equity Fund (Growth) 59.28 2,065 Equity - MidCap 2.12 5.37 18.46 17.34
162 Aditya Birla Sun Life Equity Fund (Growth) 736.09 7,959 Equity - MultiCap 2.21 3.29 8.98 15.49
163 Invesco India Growth Fund (Growth) 33.02 270 Equity - LargeCap 2.56 3.41 12.54 13.62
164 ICICI Prudential Long Term Equity Fund (Growth) 363.64 4,841 Equity - Tax Planning 2.32 3.46 10.73 10.59
165 ICICI Prudential Sensex iWIN ETF (Growth) 362.13 37 Equity - LargeCap 0.08 3.80 8.78 8.63
166 SBI ETF Sensex (Growth) 366.86 8,361 Equity - LargeCap 0.38 3.90 8.92 8.55
167 Reliance ETF Sensex (Growth) 362.76 41 Equity - LargeCap 0.06 3.91 8.92 8.77
168 HDFC Index Sensex Plan - Regular Plan (Growth) 304.73 106 Equity - LargeCap 0.30 3.83 8.68 8.52
169 Aditya Birla Sun Life India GenNext Fund (Growth) 81.67 721 Equity - Others 2.57 2.70 10.96 15.91
170 UTI Sensex Exchange Traded Fund (Growth) 358.39 1,576 Equity - LargeCap - 3.95 8.99 -
171 Principal Dividend Yield Fund (Growth) 55.16 140 Equity - MultiCap 2.65 4.17 16.35 14.39
172 HDFC Sensex ETF (Growth) 3577.62 55 Equity - LargeCap 0.05 3.90 8.97 -
173 HSBC Dynamic Fund (Growth) 17.95 47 Equity - LargeCap 2.68 3.14 6.50 9.55
174 DHFL Pramerica Long Term Equity Fund (Growth) 14.50 198 Equity - Tax Planning 2.40 3.35 9.52 -
175 BNP Paribas Dividend Yield Fund (Growth) 51.17 693 Equity - MultiCap 2.50 4.12 13.36 15.13
176 HDFC Core & Satellite Fund - Regular Plan (Growth) 86.90 658 Equity - MidCap 2.51 4.16 12.36 13.45
177 Reliance Equity Savings Fund (Growth) 12.74 1,738 Hybrid - Equity Oriented 2.00 1.66 4.91 -
178 IDFC Tax Advantage (ELSS) Fund (Growth) 60.93 798 Equity - Tax Planning 2.34 6.08 18.04 17.39
179 Principal Emerging Bluechip Fund (Growth) 114.32 1,625 Equity - MidCap 2.38 4.21 16.38 19.87
180 Baroda Pioneer Large Cap Fund (Growth) 14.30 30 Equity - LargeCap 3.18 3.32 5.85 7.50
181 HDFC Equity Savings Fund - Regular Plan (Growth) 35.34 4,812 Hybrid - Equity Oriented 2.17 1.65 4.41 10.73
182 Mirae Asset India Opportunities Fund (Growth) 48.97 6,123 Equity - LargeCap 2.44 3.61 11.70 15.31
183 Aditya Birla Sun Life Midcap Fund (Growth) 334.43 2,435 Equity - MidCap 2.28 3.57 11.14 17.26
184 Tata Equity P/E Fund - Regular Plan - Trigger Option 63.57 2,492 Equity - MidCap 2.24 4.01 7.07 11.15
A 5% (Dividend)
185 Tata Equity P/E Fund - Regular Plan (Growth) 141.92 2,492 Equity - MidCap 2.24 4.01 11.51 17.01
186 L&T India Prudence - Regular Plan (Growth) 26.84 8,313 Hybrid - Equity Oriented 2.00 3.04 6.83 12.60
187 Motilal Oswal MOSt Focused Dynamic Equity Fund (Gr.) 12.05 1,358 Hybrid - Equity Oriented 2.16 1.58 5.85 -
188 Reliance Regular Savings Fund - Equity (Growth) 78.45 3,373 Equity - MidCap 2.04 5.00 17.90 14.43
189 HDFC Childrens Gift Fund - Regular Plan (Growth) 118.35 2,021 Hybrid - Equity Oriented 2.19 2.99 9.24 12.42
190 Baroda Pioneer Growth Fund (Growth) 104.07 646 Equity - LargeCap 2.96 2.30 9.69 10.15
191 Mirae Asset Prudence Fund (Growth) 13.96 1,023 Hybrid - Equity Oriented 2.58 2.56 8.71 -
192 DSP BlackRock Natural Resources and New Energy 37.82 435 Equity - Others 3.14 4.59 20.51 27.82
Fund (Growth)
193 ICICI Prudential FMCG Fund - Dividend (Dividend) 79.85 350 Equity - FMCG 2.74 2.06 4.52 5.98
194 ICICI Prudential FMCG Fund - Growth (Growth) 221.93 350 Equity - FMCG 2.74 2.06 4.52 11.94
195 BNP Paribas Long Term Equity Fund (Growth) 39.76 621 Equity - Tax Planning 2.45 2.73 9.81 11.49
196 IDFC Dynamic Equity Fund (Growth) 12.89 495 Hybrid - Equity Oriented 2.52 1.75 6.74 6.77
197 IDFC Classic Equity Fund (Growth) 47.29 2,048 Equity - MultiCap 2.12 4.54 11.05 15.38
198 Taurus Bonanza Fund (Growth) 76.30 152 Equity - LargeCap 2.59 3.46 5.30 7.12
199 Reliance Vision Fund (Growth) 619.02 3,594 Equity - LargeCap 2.03 2.31 13.87 11.33
200 UTI Dividend Yield Fund (Growth) 64.43 2,810 Equity - MultiCap 2.12 4.39 9.90 9.01
201 DHFL Pramerica Tax Plan (Growth) 31.59 47 Equity - Tax Planning - 3.30 9.38 12.75
202 Tata Equity Opportunity Fund - Regular Plan (Div.) 35.43 1,340 Equity - MultiCap 2.38 0.10 5.22 1.54
203 Tata Equity Opportunity Fund - Regular Plan (Gr.) 204.96 1,340 Equity - MultiCap 2.38 4.22 9.54 11.87
204 Aditya Birla Sun Life Equity Savings Fund (Growth) 13.19 1,194 Hybrid - Equity Oriented 2.08 0.45 2.81 8.77
205 JM Tax Gain Fund (Growth) 16.76 34 Equity - Tax Planning - 1.57 10.81 12.87
206 ICICI Prudential Multicap Fund (Growth) 285.28 2,957 Equity - MultiCap 2.18 3.63 9.66 12.88
207 DSP BlackRock Opportunities Fund (Growth) 230.50 4,273 Equity - MultiCap 2.50 2.43 12.56 16.73
208 UTI CCP Advantage Fund (Growth) 38.16 221 Hybrid - Equity Oriented 2.87 2.38 11.51 12.38
209 L&T India Special Situations Fund - Regular Plan (Gr.) 52.34 1,208 Equity - MultiCap 2.23 5.77 12.10 13.76
Mutual Fund SIPs accounts stood at 1.88 CRORE! And the total amount collected through SIP
during December 2017 was `6,222 crore.

210 Reliance Equity Opportunities Fund (Growth) 99.96 10,397 Equity - MultiCap 1.98 5.58 16.06 9.87
211 HDFC Index Sensex Plus Plan - Regular Plan (Gr.) 474.52 127 Equity - LargeCap 1.00 3.51 8.98 8.87
212 Baroda Pioneer Balance Fund (Growth) 57.99 528 Hybrid - Equity Oriented 3.08 2.37 8.76 11.18
213 Axis Equity Fund (Growth) 25.42 1,945 Equity - LargeCap 2.11 2.46 10.76 8.87
214 UTI Long Term Equity Fund (Growth) 89.08 971 Equity - Tax Planning 2.58 2.90 9.56 11.08
215 IIFL India Growth Fund (Growth) 15.52 439 Equity - MultiCap 2.63 2.83 7.90 12.40
216 Baroda Pioneer ELSS 96 (Growth) 49.27 129 Equity - Tax Planning 3.05 2.82 10.42 -
217 UTI Growth Sector Fund - Pharma and Healthcare (Gr.) 90.55 364 Equity - Pharma 2.81 4.18 4.66 2.13
218 HDFC Equity Fund - Regular Plan (Growth) 663.12 21,691 Equity - MultiCap 2.10 4.53 11.87 11.51
219 UTI Equity Fund (Growth) 132.53 5,344 Equity - LargeCap 2.09 3.97 8.71 9.43
220 DSP BlackRock Small And Mid Cap Fund (Growth) 58.81 5,112 Equity - MidCap 2.45 4.40 13.16 17.46
221 DSP BlackRock Tiger Fund (Growth) 104.31 1,654 Equity - Infrastructure 2.43 3.96 15.66 14.55
222 Kotak Midcap Fund - Regular Plan (Growth) 84.00 807 Equity - MidCap 2.35 4.47 12.61 17.87
223 Axis Dynamic Equity Fund (Growth) 10.44 2,507 Hybrid - Equity Oriented 2.07 1.16 0.00 -
224 UTI Top 100 Fund (Growth) 66.61 967 Equity - MultiCap 2.42 4.38 10.65 11.00
225 Franklin Asian Equity Fund (Growth) 23.50 120 Equity - International Funds 2.96 8.50 16.62 14.57
226 LIC MF Infrastructure Fund (Growth) 15.72 74 Equity - Infrastructure 2.70 4.41 13.10 8.86
227 Kotak Emerging Equity Scheme - Regular Plan (Gr.) 42.01 2,809 Equity - Small Cap 2.07 4.01 13.05 18.41
228 Sundaram Diversified Equity Fund (Growth) 108.66 2,391 Equity - Tax Planning 2.38 4.06 9.82 14.21
229 UTI Balanced Fund (Growth) 176.49 4,524 Hybrid - Equity Oriented 2.33 3.88 9.13 11.80
230 Invesco India Infrastructure Fund (Growth) 19.33 49 Equity - Infrastructure 2.70 4.88 19.69 12.05
231 ICICI Prudential Value Discovery Fund (Growth) 149.05 17,568 Equity - MultiCap 2.12 4.67 9.98 10.26
232 Reliance Retirement Fund - Wealth Creation Scheme (Gr.) 14.13 1,053 Equity - MultiCap 2.26 4.45 12.84 -
233 IDBI Midcap Fund (Growth) 12.60 285 Equity - Midcap 3.16 5.18 12.20 -
234 HDFC Retirement Savings Fund - Equity - Regular Plan (Gr.) 17.64 350 Equity - Tax Planning 2.83 4.32 12.35 -
235 BNP Paribas Mid Cap Fund (Growth) 37.75 894 Equity - Midcap 2.36 2.86 14.46 17.55
236 L&T India Value Fund - Regular Plan (Growth) 39.58 6,464 Equity - Midcap 2.01 5.27 11.95 19.18
237 ICICI Prudential Child Care Plan - Gift Plan (Growth) 137.26 445 Hybrid - Equity Oriented 2.61 2.52 7.61 9.96
238 UTI Multi Cap Fund (Growth) 14.45 399 Equity - MultiCap 2.57 3.44 10.48 9.82
239 HDFC Capital Builder Fund - Regular Plan (Growth) 305.32 2,135 Equity - MultiCap 2.41 4.08 16.44 15.04
240 HDFC Long Term Advantage Fund - Regular Plan (Gr.) 356.43 1,576 Equity - Tax Planning 2.35 2.72 10.94 14.22
241 Sundaram Balanced Fund (Growth) 85.00 760 Hybrid - Equity Oriented 2.61 2.85 6.67 8.88
242 Sundaram Balanced Fund (Dividend) 15.90 760 Hybrid - Equity Oriented 2.61 2.03 1.64 2.84
243 Aditya Birla Sun Life Dividend Yield Plus (Growth) 187.49 1,111 Equity - MidCap 2.27 5.02 9.34 8.94
244 UTI Opportunities Fund (Growth) 60.33 4,479 Equity - LargeCap 2.12 4.04 11.05 6.97
245 Reliance Focused Large Cap Fund (Growth) 31.20 1,333 Equity - LargeCap 2.15 3.75 7.81 10.30
246 L&T Tax Advantage Fund - Regular Plan (Growth) 59.03 2,762 Equity - Tax Planning 2.07 5.74 14.52 16.42
247 BNP Paribas Equity Fund (Growth) 87.99 1,196 Equity - MultiCap 2.26 3.82 7.48 10.28
248 SBI Magnum Balanced Fund (Growth) 128.91 17,955 Hybrid - Equity Oriented 1.97 2.33 9.92 11.49
249 Parag Parikh Long Term Value Fund (Growth) 23.90 945 Equity - MultiCap 2.56 3.04 14.00 13.97
250 Tata India Tax Savings Fund - Regular Plan (Growth) 18.51 1,092 Equity - Tax Planning 2.46 3.28 12.87 17.65
251 Motilal Oswal MOSt Focused 25 Fund (Growth) 21.87 870 Equity - LargeCap 2.51 2.68 7.51 11.51
252 UTI Bluechip Flexicap Fund (Growth) 33.86 2,076 Equity - LargeCap 2.40 4.08 12.52 10.46
253 Tata Mid Cap Growth Fund - Regular Plan (Growth) 150.86 733 Equity - Midcap 2.58 3.77 15.01 15.69
254 HDFC Mid-Cap Opportunities Fund - Regular Plan (Gr.) 60.36 19,740 Equity - MidCap 2.20 4.36 12.74 17.92
255 BNP Paribas Focused 25 Equity Fund (Growth) 10.38 256 Equity - LargeCap - 1.77 0.00 -
256 Edelweiss ELSS Fund (Growth) 49.67 75 Equity - Tax Planning 2.68 4.06 12.41 12.01
257 Kotak Infrastructure & Economic Reform Fund - 23.95 440 Equity - Infrastructure 2.52 4.58 15.92 16.85
Regular Plan (Growth)
258 LIC MF Tax Plan (Growth) 66.46 150 Equity - Tax Planning 2.74 4.85 12.94 10.45
Average Assets Under Management (AAUM) of Indian Mutual Fund Industry for the month of
December 2017 stood at `22.61 lakh crore. Assets Under Management (AUM) as on
December 31, 2017 stood at `21.38 lakh crore.

MF Data Bank
259 Motilal Oswal MOSt Focused Midcap 30 Fund (Gr.) 27.32 1,454 Equity - Midcap 2.47 1.29 6.96 14.24
260 LIC MF ULIS 10 Yrs Regular Premium Uniform cover 18.10 258 Hybrid - Equity Oriented 2.65 3.44 9.26 -
(Quarterly Dividend Reinvestment)
261 LIC MF ULIS 5 Years Single Premium (Dividend) 18.10 258 Hybrid - Equity Oriented 2.65 3.44 9.26 7.35
262 LIC MF ULIS 10 Yrs Regular Premium Reducing 18.10 258 Hybrid - Equity Oriented 2.65 3.44 9.26 -
cover (Quarterly Dividend Reinvestment)
263 LIC MF ULIS 10 Yrs Single Premium (Dividend- 18.10 258 Hybrid - Equity Oriented 2.65 3.44 9.26 -
Reinvestment)
264 LIC MF ULIS 15 Yrs Regular Premium Reducing 18.10 258 Hybrid - Equity Oriented 2.65 3.44 9.26 -
cover (Quarterly Dividend Reinvestment)
265 LIC MF ULIS 15 Yrs Regular Premium Uniform cover 18.10 258 Hybrid - Equity Oriented 2.65 3.44 9.26 -
(Quarterly Dividend Reinvestment)
266 Mirae Asset Great Consumer Fund (Growth) 34.35 199 Equity - MultiCap 2.94 3.98 16.72 16.37
267 Sundaram Equity Multiplier Fund (Growth) 33.63 308 Equity - MultiCap 2.80 4.29 11.72 14.22
268 Mirae Asset Tax Saver Fund (Growth) 17.28 790 Equity - Tax Planning 2.56 4.31 14.57 -
269 Essel Midcap Fund - Regular Plan (Growth) 15.79 99 Equity - Midcap - 3.40 10.67 -
270 Principal Personal Taxsaver (Growth) 212.29 342 Equity - Tax Planning 2.53 4.73 11.38 11.34
271 Aditya Birla Sun Life Infrastructure Fund (Growth) 39.21 666 Equity - Infrastructure 2.69 2.89 13.65 13.82
272 IDBI Diversified Equity Fund (Growth) 21.94 481 Equity - Midcap 3.02 4.18 10.20 9.79
273 Indiabulls Blue Chip Fund (Growth) 20.53 976 Equity - LargeCap 2.62 3.69 9.09 11.73
274 UTI Wealth Builder Fund (Growth) 33.93 971 Equity - Others 2.57 2.33 5.71 5.84
275 LIC MF Equity Fund (Growth) 48.69 383 Equity - MultiCap 2.82 3.84 12.71 5.22
276 Reliance Tax Saver Fund (Growth) 68.97 10,157 Equity - Tax Planning 1.98 4.17 14.95 12.73
277 HDFC Retirement Savings Fund - Hybrid Equity - 16.30 146 Hybrid - Equity Oriented 2.93 3.52 8.52 -
278 BOI AXA Equity Fund (Growth) 39.52 103 Equity - MultiCap 3.00 6.15 16.72 11.89
279 BOI AXA Equity Fund - Eco Plan (Growth) 41.41 103 Equity - MultiCap 2.25 6.23 17.21 12.71
280 DSP BlackRock Equity Savings Fund (Growth) 12.39 1,368 Hybrid - Equity Oriented 2.48 0.25 4.14 -
281 HSBC Tax Saver Equity Fund (Growth) 40.16 190 Equity - Tax Planning 2.61 4.32 10.78 13.86
282 ICICI Prudential Nifty Next 50 Index Fund (Growth) 27.44 131 Equity - MultiCap 0.81 4.40 13.18 17.91
283 L&T Midcap Fund - Regular Plan (Growth) 152.98 1,732 Equity - Small Cap 2.22 4.64 14.28 21.88
284 Reliance ETF Junior BeES (Growth) 316.61 224 Equity - MultiCap 0.20 4.57 13.84 18.28
285 IDBI Nifty Junior Index Fund (Growth) 23.52 45 Equity - MultiCap 1.96 4.33 12.36 16.98
286 SBI Contra Fund (Growth) 123.97 1,881 Equity - MultiCap 2.12 4.76 13.16 11.94
287 Axis Multicap Fund (Growth) 10.15 2,304 Equity - MultiCap - 0.89 0.00 -
288 L&T Business Cycles Fund - Regular Plan (Growth) 17.80 1,038 Equity - MidCap 2.24 3.80 14.60 14.35
289 UTI Nifty Next 50 Exchange Traded Fund (Growth) 312.10 61 Equity - LargeCap - 4.53 0.00 -
290 BOI AXA Tax Advantage Fund - Eco Plan (Growth) 61.56 133 Equity - Tax Planning 2.23 6.76 24.14 17.16
291 BOI AXA Tax Advantage Fund (Growth) 58.89 133 Equity - Tax Planning 2.98 6.70 23.61 16.30
292 Reliance Diversified Power Sector Fund (Growth) 127.06 2,008 Equity - Others 2.11 9.71 23.49 18.66
293 Templeton India Equity Income Fund (Growth) 49.39 1,065 Equity - MultiCap 2.79 5.27 13.91 13.39
294 Canara Robeco Emerging Equities (Growth) 97.73 2,823 Equity - Small Cap 2.34 4.05 13.09 19.43
295 Edelweiss Equity Opportunities Fund (Growth) 31.57 299 Equity - LargeCap 2.57 4.30 13.63 11.70
296 BNP Paribas Balanced Fund - Regular Plan (Growth) 11.20 434 Hybrid - Equity Oriented 2.60 2.17 6.50 -
297 DHFL Pramerica Midcap Opportunities Fund (Gr.) 20.96 153 Equity - Midcap 2.63 4.43 10.32 11.50
298 ICICI Prudential Indo Asia Equity Fund - Institutional 30.45 193 Equity - MultiCap 2.25 4.57 15.52 14.85
Plan (Growth)
299 ICICI Prudential Indo Asia Equity Fund (Growth) 30.45 193 Equity - MultiCap 2.55 4.57 15.56 14.87
300 Edelweiss Equity Savings Advantage Fund (Growth) 13.13 199 Hybrid - Equity Oriented 1.50 1.30 5.55 7.76
301 Mirae Asset Emerging Bluechip Fund (Growth) 53.47 5,364 Equity - MidCap 2.45 4.09 13.59 22.85
302 Invesco India Contra Fund (Growth) 48.30 919 Equity - MultiCap 2.37 5.39 18.47 16.64
303 Tata India Pharma & HealthCare Fund (Growth) 8.99 125 Equity - Pharma 2.91 4.78 0.86 -
The Industry’s AUM had crossed the milestone of `10 Trillion (`10 Lakh Crore) for the first time in
May 2014 and in a short span of about three and half years, the AUM size has increased more than
two folds and stood at `21.38 Trillion (`21.38 Lakh Crore) as on 31st December, 2017.

304 HSBC India Opportunities Fund (Growth) 92.82 601 Equity - MultiCap 2.57 4.63 11.93 12.53
305 IDFC Premier Equity Fund (Growth) 98.34 6,082 Equity - MidCap 2.00 4.44 11.01 11.86
306 Axis Children's Gift Fund Compulsory Lock-in - 12.79 365 Hybrid - Equity Oriented 2.52 2.73 9.63 -
307 Axis Children's Gift Fund No Lock-in - Regular Plan (Gr.) 12.79 365 Hybrid - Equity Oriented 2.52 2.73 9.63 -
308 Principal Tax Savings Fund (Growth) 228.10 921 Equity - Tax Planning 2.55 5.43 16.25 17.44
309 Principal Growth Fund (Growth) 154.89 593 Equity - MultiCap 2.50 5.35 16.28 17.52
310 AXIS Equity Saver Fund (Growth) 11.82 876 Hybrid - Equity Oriented 2.41 0.93 4.32 -
311 UTI Transportation and Logistic Fund (Growth) 126.66 1,384 Equity - Others 2.48 3.94 12.05 14.21
312 Templeton India Growth Fund (Growth) 282.00 626 Equity - MultiCap 2.72 3.05 12.11 14.18
313 Reliance Pharma Fund (Growth) 143.10 1,794 Equity - Pharma 2.13 3.12 6.92 4.01
314 Taurus Starshare (Growth) 118.69 223 Equity - MultiCap 2.55 4.02 7.14 8.54
315 Reliance Mid & Small Cap Fund (Growth) 51.86 3,424 Equity - Small Cap 2.04 5.54 14.38 16.09
316 Axis Focused 25 Fund (Growth) 26.83 2,623 Equity - MultiCap 2.09 3.95 13.40 15.89
317 L&T Equity Savings Fund - Regular Plan (Growth) 17.40 132 Hybrid - Equity Oriented 2.05 1.81 5.59 7.36
318 Invesco India Tax Plan (Growth) 50.08 515 Equity - Tax Planning 2.47 3.90 13.48 13.63
319 Tata Retirement Savings Fund - Moderate Plan - 30.22 436 Hybrid - Equity Oriented 2.74 3.08 11.19 15.88
320 IDBI Prudence Fund (Growth) 12.20 455 Hybrid - Equity Oriented 3.09 2.86 7.13 -
321 Taurus Ethical Fund (Growth) 50.57 31 Equity - MultiCap 2.68 4.25 14.75 8.11
322 Tata Retirement Savings Fund - Progressive Plan - 29.84 364 Equity - MultiCap 2.74 3.82 14.08 16.99
323 DSP BlackRock Micro-Cap Fund (Growth) 72.15 6,467 Equity - Small Cap 2.39 6.66 16.38 24.05
324 SBI Magnum Midcap Fund (Growth) 86.80 4,081 Equity - Small Cap 2.03 5.10 10.84 16.63
325 Aditya Birla Sun Life Tax Plan (Growth) 40.16 650 Equity - Tax Planning 2.57 2.50 13.93 14.63
326 HDFC Small Cap Fund - Regular Plan (Growth) 47.24 1,783 Equity - Small Cap 2.46 7.86 23.07 21.67
327 Principal Balanced Fund (Growth) 77.71 871 Hybrid - Equity Oriented 2.74 3.54 12.97 15.53
328 Aditya Birla Sun Life Tax Relief 96 (Growth) 32.07 4,349 Equity - Tax Planning 2.28 2.49 14.05 15.23
329 Aditya Birla Sun Life Tax Savings Fund (Growth) 73.45 27 Equity - Tax Planning 2.70 2.41 13.91 14.90
330 SBI Infrastructure Fund (Growth) 17.25 638 Equity - Infrastructure 2.42 5.29 17.39 15.83
331 Franklin India Prima Fund (Growth) 1026.63 6,515 Equity - MidCap 2.30 4.69 13.66 16.16
332 Principal Equity Savings Fund (Growth Accum) (Gr.) 34.74 46 Hybrid - Equity Oriented 2.70 0.81 3.55 7.41
333 Principal Equity Savings Fund (Quarterly Dividend) 12.64 46 Hybrid - Equity Oriented 2.70 -0.93 -0.20 0.37
(Dividend)
334 Tata Infrastructure Fund - Regular Plan (Growth) 63.48 903 Equity - Infrastructure 2.58 5.44 15.91 13.66
335 DHFL Pramerica Equity Income Fund (Growth) 30.15 35 Hybrid - Equity Oriented 1.75 2.36 4.78 9.25
336 Sundaram Rural India Fund (Growth) 44.59 1,999 Equity - Others 2.37 3.09 9.47 19.34
337 IDBI Small Cap Fund (Growth) 11.37 235 Equity - Small Cap 2.99 5.67 13.25 -
338 Franklin India Smaller Companies Fund (Growth) 63.87 7,075 Equity - Small Cap 2.38 4.72 15.40 19.17
339 Union Small and Midcap Fund (Growth) 17.50 279 Equity - Small Cap 2.64 6.58 16.82 12.35
340 Axis Long Term Equity Fund (Growth) 42.24 16,108 Equity - Tax Planning 1.97 3.93 12.78 12.06
341 SBI Small & Midcap Fund (Growth) 64.09 888 Equity - Small Cap 2.33 6.74 40.83 29.90
342 SBI Emerging Businesses Fund (Growth) 137.93 2,234 Equity - Midcap 2.10 3.90 16.92 14.51
343 Aditya Birla Sun Life MNC Fund - Gr (Growth) 779.82 3,316 Equity - Others 2.15 2.89 13.84 13.33
344 IDFC Infrastructure Fund (Growth) 19.85 815 Equity - Infrastructure 2.43 4.70 20.34 20.25
345 Aditya Birla Sun Life MNC Fund - Div (Dividend) 175.54 3,316 Equity - Others 2.15 2.89 2.65 4.94
346 Edelweiss Economic Resurgence Fund (Growth) 14.98 34 Equity - MultiCap 2.65 4.52 17.72 -
347 SBI Magnum Multiplier Fund (Growth) 226.99 2,126 Equity - MultiCap 2.10 4.15 13.75 14.91
348 UTI Mid Cap Fund (Growth) 117.89 4,169 Equity - Midcap 2.30 5.02 16.87 15.20
349 LIC MF Balanced Fund (Growth) 102.24 305 Hybrid - Equity Oriented 2.86 3.42 9.22 5.32
350 LIC MF Balanced Fund (Dividend) 15.74 305 Hybrid - Equity Oriented 2.99 2.76 4.94 0.86
All the NAV figures are for date January 16, 2018. Trailing returns are also calculated for the same date. Returns of three years is
annualised. Blank in returns table shows data is not available for that period. AUM and Expense Ratio are for the period ending
November or December, depending upon for which data is available. All the data is powered by Dion Global Solutions Ltd

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 Perc
Company Name
Date Price Date Price Return
12-Apr-16 Great Eastern Shipping Company 328.40 08-Dec-16 376.05 14.51
26-Apr-16 Arvind 284.65 03-Oct-16 354.10 24.40
10-May-16 Hindustan Media Ventures 268.80 10-May-17 283.00 5.28
24-May-16 Gujarat State Petronet 131.05 19-Apr-17 179.80 37.20
08-Jun-16 Coal India 305.85 03-Mar-17 322.45 5.43
22-Jun-16 Reliance Industries 987.25 22-Feb-17 1207.65 22.32
07-Jul-16 Mahanagar Gas 517.50 30-Aug-16 641.25 23.91
19-Jul-16 Steel Authority of India (SAIL) 48.50 23-Jan-17 61.25 26.29
03-Aug-16 Crisil 2098.40 02-Aug-17 1844.35 -12.11
17-Aug-16 Rajesh Exports 435.35 03-Feb-17 498.50 14.51
30-Aug-16 Lupin 1509.50 01-Aug-17 1030.00 -31.77
13-Sep-16 Bharat Financial Inclusion 730.65 03-Oct-16 920.75 26.02
27-Sep-16 Bharat Electronics 128.21 23-Mar-17 154.10 20.20
12-Oct-16 Quess Corp 615.85 20-Apr-17 751.15 21.97
26-Oct-16 Equitas Holdings 176.70 26-Oct-17 146.10 -17.32
08-Nov-16 Muthoot Finance 359.05 15-Jun-17 480.55 33.84
22-Nov-16 Engineers India 138.12 05-Oct-17 149.20 8.02
07-Dec-16 Elgi Equipments 177.85 16-Jun-17 234.00 31.57
21-Dec-16 Gillette India 4264.35 07-Aug-17 5360.00 25.69
04-Jan-17 Power Grid Corporation of India 188.00 21-Nov-17 207.25 10.24
18-Jan-17 Oil India 337.30 03-Oct-17 351.70 4.27
01-Feb-17 IRB Infrastructure Developers 231.70 15-Dec-17 210.35 -9.21
15-Feb-17 Shriram Transport Finance Company 938.95 27-Oct-17 1153.95 22.90
01-Mar-17 Supreme Industries 1005.95 12-Sep-17 1165.00 15.81
15-Mar-17 Kajaria Ceramics 553.65 20-Sep-17 752.05 35.83
11-Apr-17 Aarti Industries 778.70 15-May-17 931.05 19.56
26-Apr-17 SJVN 35.05 04-Oct-17 35.20 0.43
10-May-17 Sadbhav Infrastructure Project 111.35 20-Nov-17 141.10 26.72
24-May-17 IDBI Bank 66.15 Open -9.83
07-Jun-17 Bajaj Holdings & Investment 2064.05 07-Aug-17 2546.00 23.35
20-Jun-17 Tata Motors 468.00 Open -9.87
06-Jul-17 Power Finance Corporation 122.60 27-Oct-17 147.60 20.39
19-Jul-17 Dredging Corporation Of India 624.65 09-Nov-17 711.90 13.97
03-Aug-17 TCPL Packaging 658.55 Open 6.45
17-Aug-17 Tata Metaliks 667.80 20-Nov-17 826.20 23.72
31-Aug-17 Tata Sponge Iron 815.25 10-Jan-18 1124.45 37.93
14-Sep-17 Symphony 1429.80 18-Dec-17 1672.00 16.94
12-Oct-17 Time Technoplast 198.40 Open 8.67
26-Oct-17 Esab India 865.30 Open -3.39
09-Nov-17 CCL Products India 319.65 Open -6.98
23-Nov-17 Bajaj Finance 1763.85 Open -4.32
07-Dec-17 Minda Industries 1103.85 Open 11.51
21-Dec-17 J B Chemicals & Pharmaceuticals 325.00 Open -1.38
04-Jan-18 Kalpataru Power Transmissions 481.35 Open 3.66

Trackpad
Barbeque Nation Hospitality
Receives IPO Nod India ’s IIP
P
opular dining chain Barbeque Nation Hospitality is buckling up to launch its
IPO as the company received the final nod of the market regulator Securities jumps to 8.4
per cent in
and Exchange Board of India to raise around `7 billion through initial public
offering.
November
The IPO is likely to comprise a fresh issue of shares worth `2 billion and an offer for
sale of up to 6,179,000 equity shares, as per the DRHP filed by the company.
Moreover, the offer will include a reservation of up to 1.5 lakh equity shares for the
2017
company’s employees. The company had filed its draft red herring prospectus
(DRHP) with SEBI in the month of August 2017.
F
The company is expected to utilise the funds raised through the IPO for setting up
new Barbeque Nation restaurants, repayment of loans and other corporate purposes. ollowing a year of economic
The company has charted a tremendous growth from just one restaurant in 2006-07 turbulence, the economy is
to over 81 restaurants in 2017. finally starting to show some
cues of recovery. According to the
The company has signed IIFL Holdings, Edelweiss Financial Services, Jefferies India recently released industrial production
and SBI Capital Markets as its book running lead managers to the issue. data, the country ’s Index of Industrial
Production stood at 8.4 per cent for
Continuing the IPO frenzy in the markets after an encouraging year 2017 for IPOs, November 2017.
the markets are set to welcome big IPOs of companies including Hindustan
Aeronautics Limited, Barbeque Nation Hospitality, IRCTC, Reliance General The whopping rise has come as a
Insurance Company and HG Infra Engineering, among others. surprise as India’s IIP stood at 2.20 per
cent for October 2017 and 4.10 per
cent for September 2017. Meanwhile,
inflation measured by the Consumer
India GDP To Grow At

Price Index rose to 5.21 per cent in
December 2017, as against 4.88 per
cent in November 2017. The growth in
7.3 Per Cent: World Bank

the index was largely driven by the
boom in manufacturing sector, which
increased to 10.2 per cent. However,
D
the growth in other sectors, including
espite the slowdown in the Indian economy, global institutions are bestowing mining and electricity, stood at 1.1 per
confidence in the hope of revival in the economy. International behemoths cent and 3.9 per cent, respectively, for
Morgan Stanley and World Bank are forecasting a growth rate of around 7.3 November 2017.
per cent for FY2018-19.
Under the ambit of manufacturing,
According to the global financial giant Morgan Stanley, the growth story of the Indian pharmaceutical sector, medical
economy is likely to remain strong in the medium term perspective on the back of chemicals and botanical products
improving corporate returns expectations and balance sheet fundamentals. posted the highest growth of 39.5 per
cent, while computers, electronic and
The financial major also added that the cyclical growth recovery and normalising optical products recorded growth of
food prices are also likely to promote a revival in headline inflation. 29.1 per cent. Other transport
equipments put up a growth of 22.6
Further, World Bank has also expressed that it is most likely that India will record a per cent.
higher growth rate than other major emerging market economies in the coming
decade. India’s strong private consumption and services is expected to be a key driving
force for the economy. On the contrary, World Bank’s projected a decelerating growth
rate for the Chinese economy. China's growth rate is expected to decline to 6.4 per
cent in 2018 from 6.8 per cent in 2017.

QueryBoard
Investment Horizon
Query-Specific
SIL INVESTMENTS SPARC SYSTEMS

I hold 300 shares of Sil Investments, bought at I bought shares of Sparc Systems. The scrip is
`357. Should I hold or sell the shares? trading at `3 now. Should I hold or sell?
- Vidyanand - Kartik Dalal
HOLD EXIT
BSE/NSE Code 521194 / SILINV BSE/NSE Code 531370
Face Value `10 Face Value `10
CMP `492.60 CMP `3.17
52-Week High `579.15 / Low `116 52-Week High `7.16 / Low `2.68
Your Current 37.98 per cent Your Current --
Profit/(Loss) Profit/(Loss)
S S
il Investments Limited is a non-banking financial company parc Systems develops electronic security systems,
engaged in providing commercial finance and investments. facsimile router on leased line with G3 capability,
Its commercial finance operations includes inter-corporate electronic detection and monitoring range of products,
deposits. The company has investments in companies including building management systems, remote surveillance, wireless
investments in shares, securities and real estate. The company’s systems, mobile ATMs, mobile banks, biometric systems,
subsidiaries include RTM Investment & Trading Co Ltd, SCM remote display systems, telematic systems for fleet
Investment & Trading Co Ltd, and SIL Properties Limited. On management/vehicle control and network access systems and
the financial front, the net sales of the company increased by GPS loggers. On the financial front, the company did not post
240.89 per cent to `35.18 crore in the second quarter of FY2018 any net sales for the second quarter of the fiscal year and even
as against `10.32 crore in the same quarter of the previous fiscal. for the same quarter in the previous fiscal. The EBIDT of the
The PBIDT of the company increased by 253.34 per cent to company was a negative `3 lakh for the second quarter of
`34.38 crore in the second quarter of FY2018 as against `9.73 FY2018. The EBIDT declined further from the levels of the
crore in the same quarter of the previous fiscal. The net profit of previous year. The net profit of the company increased to `3
the company increased by 258 per cent to `27.47 crore in the lakh in the second quarter of FY2018 as against a loss of `1 lakh
second quarter of FY2018 as against `7.67 crore in the same in the same quarter of the previous fiscal. On the annual front,
quarter of the previous fiscal. On the annual front, the company the company posted net sales of `7 lakh in FY2017 on a yearly
posted a 26.49 per cent increase in its net sales to `29.65 crore in basis. The company’s EBIDT was negative `5 lakh. The
FY2017 as against `23.44 crore in FY2016. The PBIDT of the company posted a loss of `3 lakh during FY2017. Most of the
company increased by 25.50 per cent to `26.33 crore in FY2017 financial figures of the company for FY2016 are negligible. The
as against `20.98 crore in the previous fiscal. The net profit of company is seemingly operating at a very diminutive level and
the company increased by 36.97 per cent to `17.19 crore in its operations do not inspire confidence.
FY2017 as against `12.55 crore in FY2016. We recommend the
readers to HOLD the stock. Hence, we recommend our reader-investors to EXIT the stock.
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.
Vol. No.
No. 31
33 No.
No. 04
17
Query:
Send in your queries:
DSIJ Pvt. Ltd.
C-305, 3rd 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

KIRI INDUSTRIES COMPUCOM SOFTWARE
I bought 500 shares of Compucom Software at the
I am holding 10 shares of Kiri Industries. What are price of `18. Kindly advise if I should hold it at the
your views on the stock? current level?
- S Girish - Darshit Bhatt
HOLD HOLD
BSE/NSE Code 532967 / KIRIINDUS BSE/NSE Code 532339 / COMPUSOFT
CMP `622.85 CMP `17.00
52-Week High `674.40 / Low `227.05 52-Week High `21.90 /Low `10.56
Your Current -- Your Current (5.55 per cent )
K C
iri Industries Limited is an India-based holding company ompucom Software Limited is engaged in the business
engaged in the business of manufacturing dyes, of offering learning solutions. Its segments include
intermediaries and basic chemicals. The company offers software and e-governance services, learning solutions
a range of reactive dyes, which include Kiractive P dyes, Kiraol and wind power generation.
VS dyes, Kiractive HE dyes, Kiractive ME dyes, Kirazol KR/KX
dyes and Kiractive KF dyes. The company provides software support and development and
e-governance services. Its e-governance practices include
The company also offers acid dyes and direct dyes. It produces public distribution systems (PDS), social security and
direct black 22 powder, and liquid form under direct dyes provident funds, co-operatives and traffic monitoring and
category. The company’s acid dyes include acid black 210, acid control. In the learning solutions segment, the company
black 194, acid blue 193, acid green 104, acid violet 90, acid red provides computer education and training services. Its wind
357, acid red 362 and acid orange 142. Its manufacturing unit is power generation segment generates electricity through the use
located at Vadodara, Gujarat and it operates in over 50 countries of wind power. The company also offers information and
across the world. On the financial front, the company posted a communication technologies (ICT)-enabled education in
1.43 per cent decline in its net sales in the second quarter of government and private schools. The system integration
FY2018 on a year-on-year basis. The PBIDT of the company practices in the company provide a structured information
recorded an increase of 9.78 per cent to `37.24 crore in the processing and delivery framework.
second quarter of FY18 as against `33.92 crore in the second
quarter of FY17. The net profit of the company increased by On the financial front, the net sales of the company slightly
20.62 per cent to `30.07 crore in the second quarter of FY18 as decreased by 2.86 per cent to `12.77 crore in the second
against `24.93 crore in the same quarter of the previous fiscal. quarter of FY2018 on a yearly basis. The PBIDT of the
company got reduced by 15.47 per cent to `7.55 crore in the
On the annual front, the net sales of the company increased by second quarter of FY2018 as compared to `8.93 crore in the
8.04 per cent to `964.83 crore in FY2017 as against `893.04 crore same quarter of the previous fiscal. The net profit of the
in FY2016. The PBIDT of the company increased by 47.26 per company also declined by 6.35 per cent to `3.02 crore in the
cent to `127.57 crore in FY2017 as compared to `86.63 crore in second quarter of FY2018 as against `3.23 crore in the same
FY2016. The net profit of the company increased tremendously quarter of the previous fiscal.
from `4.38 crore in FY2016 to `95.33 crore in FY2017. On the
valuation front, the company’s TTM PE stood at 17.53x against On the annual front, the net sales of the company declined
an industry PE of 22.45x. The company’s peers Shree Pushkar by 6.96 per cent to `51.88 crore in FY2017 as against
Chemicals and Sudarshan Chemicals posted TTM PE of 28.69x `55.76 crore in the previous fiscal. The PBIDT of the company
and 39.15x, respectively. Further, the company posted an ROE of decreased by 37.86 per cent to `16.82 crore in FY2017 as
44.68 per cent and ROCE of 18.53 per cent, respectively. compared to `27.07 crore in FY2016. The net profit of the
The stock is expected to chart a growth path in the coming company declined massively by 73.46 per cent to `1.85 crore in
quarters. FY2017 as against `6.97 crore in the previous fiscal.
We recommend our reader-investors to HOLD the stock. We recommend our reader-investors to HOLD the stock.

QueryBoard
Investment Horizon
Query-Specific
DWARIKESH SUGAR KESORAM INDUSTRIES

I have 500 shares of Dwarikesh Sugar bought at
`69. The scrip price is trading below `50, please I purchased shares of Kesoram at `153.81. The stock
suggest what I should do. is trading low. What should I do?
- Sharad - D Solanki
HOLD HOLD
BSE/NSE Code 532610 / DWARKESH BSE/NSE Code 502937 / KESORAMIND
CMP `47.10 CMP `156.75
52-Week High `80.50 / Low `37.81 52-Week High `173.40 / Low `119.60
Your Current (31.73 per cent) Your Current 1.91 per cent
D K
warikesh Sugar Industries Limited is primarily engaged esoram Industries Limited is engaged in the business of
in the manufacture of sugar and allied products. The cement and automobile tyre manufacturing. The
company also produces power and ethanol/industrial company products include tyres, tubes and cement. The
alcohol. The company’s segments include sugar, co-generation company markets its automobile tyres under the brand name
and distillery. The company has two manufacturing plants Birla Tyres and its cement under the brand name of Birla
located in Uttar Pradesh. The company’s 90 MW power plants at Shakti. The company operates through two cement
its manufacturing units use bagasse to generate power. The manufacturing plants with a total combined capacity of nearly
company’s sugar manufacturing units have a combined 7.25 million metric tonnes. The company has a subsidiary,
production capacity of approximately 21,500 tonnes of Cavendish Industries Limited. The company has set up its rayon
sugarcane per day. The company’s nearly 30 kilolitres per day yarn manufacturing unit in West Benga with installed capacity
(KLPD) distillery uses molasses to manufacture industrial of 4,635 metric tonnes per annum. The company also has two
alcohol, including rectified spirit and ethanol. cement manufacturing facilities located at Andhra Pradesh
with a production capacity of 1.2 million metric tonnes and 4.1
On the financial front, the company posted a 23.44 per cent million metric tonnes.
increase in its net sales to `316.55 crore in the second quarter of
FY2018 as against `256.45 crore in the same quarter of FY2017. On the financial front, the company posted a 15.12 per cent
However, the PBIDT of the company decreased by 23.52 per decline in its net sales to `840.58 crore in the second quarter of
cent to `34.67 crore in the second quarter of FY2018 as FY18 as against `990.28 crore in the same quarter of the
compared to `45.33 crore in the same quarter of the previous previous fiscal. The PBIDT of the company declined by 123 per
fiscal. The net profit of the company decreased by 18.15 per centcent to negative `5.56 crore in the second quarter of FY18 as
to `30.09 crore in the second quarter of FY2018 as against compared to `23.82 crore in the same quarter of the previous
`36.76 crore in the same quarter of the previous fiscal. On the fiscal. The net loss of the company massively widened to
annual front, the net sales of the company increased by 51.06 `139.59 crore in the second quarter of FY2018 as against a net
per cent to `1256.10 crore in FY2017 as against `831.51 crore in loss of `2.74 crore in the same quarter of the previous fiscal.
FY2016. The PBIDT of the company increased by over 150 per On the annual front, the net sales of the company declined by
cent to `271.36 crore in FY2017 as against `108.21 crore in the 7.41 per cent to `4,205 crore in FY2017 as against `4,542 crore
previous fiscal. The net profit of the company increased by in the previous fiscal. However EBIDT of the company posted
306.65 per cent to `158.47 crore in FY2017 as against `38.97 an increase of 96 per cent, which reduced the losses in the
crore in FY2016. second quarter of FY2018. The company posted an EBITD of
negative `9.60 crore in FY2017 as against negative `282.58 crore
The company has shown a tremendous progress on the financial in the previous fiscal. The company narrowed its net losses from
front and the scrip is likely to show growth on the bourses too. a net loss of `209.79 crore in FY2016 to a net loss of `124.13
On the valuation front, the company’s TTM PE stood at 4.90 x crore in FY2017.
against an industry PE of 6.98 x. The company’s peers Oudh
Sugar Mills and Uttam Sugar Mills posted TTM PE of 2.3 x and The company is showing a recovery trend and is expected to
4.09 x, respectively. We recommend the reader-investors to chart growth on the bourses too. We recommend the DS
HOLD the stock. reader-investors to HOLD the stock.

(Closing price as on Jan 17, 2018)

Reviews
In this edition, we have reviewed Reliance Naval and Engineering and Tata Sponge Iron. We suggest our reader-
investors to EXIT in Reliance Naval and Engineering and BOOK PROFIT in Tata Sponge Iron
Change Scrip’s Movement

RELIANCE NAVAL & ENGG. EXIT 10.94 Per Cent
CMP - `53.25
BSE CODE Reco. Price Face Value

533107 `63.50 `10
W
e had recommended Reliance Pipavav, Gujarat.
Naval and Engineering
Limited in volume 32, issue On the financial front, Reliance Naval
no. 13 dated May 29 - June 11, 2017, and Engineering Limited posted a 15.57
under the ‘Low Priced Scrip’ section per cent decline in its net sales to `83.29
when the scrip was trading at `63.50 per crore in the second quarter of FY2018 as
share. Our recommendation was based against `98.65 crore in the same quarter
on the growing market and good of FY2017. The PBIDT of the company
potential demand for ship repairs, dropped by 61.97 per cent to `4.37 crore PBIDT of the company increased by 114
new offiering by the government and in the second quarter of FY2018, as per cent to `22.23 crore in FY2017 as
strong financial performance of the against `11.49 crore in the same quarter against a negative `157.22 crore in
company. of the previous fiscal. The net loss of the FY2016. The net loss of the company
company increased by 29.56 per cent to declined by 0.99 per cent to `523.43 crore
Reliance Naval and Engineering Limited `150.67 crore in the second quarter of in FY2017 on a yearly basis.
is a defence company engaged in the FY18 as against the net loss of `116.29
business of shipbuilding and fabrication. crore in the same quarter of the previous After our recommendation, the share
The shipbuilding and fabrication fiscal. price of Reliance Naval and Engineering
segment of the company includes Limited declined by nearly 9 per cent.
shipbuilding, block manufacturing, ship On the annual front, the company’s net The stock has been earthbound of late
and rig repairs, fabrication at its Special sales increased by 69.44 per cent to and it is likely to remain flat in the near
Economic Zone (SEZ) and Export `519.46 crore in FY2017, as against term. Hence, we recommend our
Oriented Units (EOU) situated at `306.58 crore in the previous fiscal. The investors to EXIT.
Change
TATA SPONGE IRON BOOK PROFIT 46.98 Per Cent
CMP - `1175.70 Scrip’s Movement
BSE CODE Reco. Price Face Value

513010 ` 815.25 `10
W
e had recommended Tata On the financial front, the net sales of the
Sponge Iron Limited in company increased by 8.8 per cent to
volume 32, issue no. 20 dated `167.18 crore in the second quarter of
September 4-17, 2017, under the ‘Choice FY2018, as compared to `153.55 crore in
Scrip’ section when the scrip was trading the same quarter of FY2017. The PBIDT
at `806 per share. Our recommendation of the company increased by 103 per cent
was based on the expected improvement to `34.40 crore in the second quarter of
in domestic demand for steel due to FY2018 as compared to `16.94 crore in
infrastructure push and buoyant steel the same quarter of FY2017. The net company increased by 84.20 per cent to
prices. Tata Sponge Iron Limited, a profit of the company increased by 72 per `58.74 crore in FY2017 as against `31.89
subsidiary of Tata Steel, is engaged in the cent to `27.61 crore in the second quarter crore in the previous fiscal.
business of producing and marketing of FY2018 as against `16.05 crore in the After our recommendation, the share
sponge iron which is used in steel same quarter of FY2017. On the annual price of Tata Sponge Iron Limited
making. It also generates 26 MW power front, the company’s net sales declined by declined by over 43 per cent. The stock is
as a by-product, which it exports to its 2.82 per cent to `615.16 crore in FY2017 at its optimum growth level and the
parent company. The company also as against `633.04 crore in the previous growth momentum is expected to slow
produces power through waste heat fiscal The PBIDT of the company down in the near term. Hence, we
recovery boilers, enabling it to help increased by 157.24 per cent to `61.66 recommend the reader-investors to BOOK
reduce carbon emissions and earn carbon crore in FY2017 as compared to `23.97 PROFIT. DS
credits. crore in FY2016. The net profit of the (Closing price as on Jan 16, 2018)

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
WORST IS BEHIND
Wagon manufacturers had been
Titagarh Wagons battling low capacity utilisation and
BSE Code: 532966 consequently profitability issues
CMP: `172.40 since last few quarters as the last
sizeable wagon award from the
Indian Railways (IR) was in May
2016. However, the IR recently awarded a tender for 9,500
wagons. If the murmurs on Dalal Street are to be believed,
the worst is now behind for the wagon industry and this
could change the fortunes of the wagon manufacturers.
Titagarh Wagons is one stock which will benefit immensely
from this announcement. The stock could see good times
ahead
PICK UP IN DEMAND The company,

BUSINESS EXPANSION India’s leading
Bharat Forge which gets about Thomas Cook integrated travel
BSE Code: 500493 two-thirds of its BSE Code: 500413 and travel-related
CMP: `734.95 revenue from CMP: `258 financial services
overseas, expects company has
a strong pick-up in demand for trucks in strengthened its presence in North India
North America. The North America Class with the inauguration of a flagship store
8 truck orders increased sharply by 77 at Connaught Place. This expansion
per cent YoY in December to 37,200 augments Thomas Cook India’s total
units, and even on MoM basis, the truck number of outlets to 16 consumer access
orders surged 15 per cent. With its US centres with 6 owned branches and 10
truck sales growing rapidly and Gold Circle Partner (franchise) outlets in
expectations of strong improvement in Delhi and totally 42 consumer access
global capex cycle, Bharat Forge could be centres with 13 owned branches and 29
the stock to watch out for. The company’s Gold Circle Partner (franchise) outlets in
foray into defence and its potential in North India. Market gossip is doing the
the next couple of years could also be rounds that a strong rally is expected in
huge. An excellent buy. this counter in the very near term.
Gati
AND FINALLY.. BSE Code: 532345

CMP: `147.90
Gati today delivers across 99 per cent districts in India, with a strong
presence in Asia-Pacific region and SAARC countries as well. With an
integrated technological system network across air, rail and road
platforms, a nation-wide warehouse presence, complete e-commerce
logistics, integrated cold chain solutions and trading solutions, the
company is able to provide end-to-end supply chain solutions to
millions of customers. The price movement in this counter over the
recent past has been very good with large volumes. The stock price
is expected to see further upmove. Some HNIs and big market
punters have initiated long positions in the stock and are expecting
it to move in the northward direction.
DS
(Closing price as on Jan 17, 2018)

RNI NO 43837/1986. Postal Registration No. MCW/325/2018-20 License to post without prepayment WPP License No MR/TECH/WPP-111/West/2018
Posted at Mumbai Patrika Channel Sorting Office, Mumbai-400001 Date of posting Alternate Thursday & Friday. Published: Alternate Monday
68

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CONTENTS Vol. 33 No.

04 • JAN 22 - FEB 4, 2018

How To Profit 10 Low Priced Scrip

From The Budget 11 Hot Chips

Defence Sector are advertorials provided by the

4 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

This issue, we have a special feature covering CSR

Stay Tuned, Stay Invested and Stay Wealthy !

6 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

Vol. 33. No. 04 • JAN 22 - FEB4, 2018

Founder & Editor-In-Chief Marketing & Sales enquiry@dsij.in

DSIJ.in JAN 22 - FEB 4, 2018 I DALAL STREET INVESTMENT JOURNAL 7

29th Dec 12th Jan Gain/Loss

Dow Jones Ind 24,719.22 25,803.19 4.39

8 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

COOL COMPANY TO GROW WITH

DSIJ.in JAN 22 - FEB 4, 2018 I DALAL STREET INVESTMENT JOURNAL 9

10 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

BSE CODE Volume Face Value

DSIJ.in JAN 22 - FEB 4, 2018 I DALAL STREET INVESTMENT JOURNAL 11

12 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

The stock of Kakatiya Cement is currently trading at

DSIJ.in JAN 22 - FEB 4, 2018 I DALAL STREET INVESTMENT JOURNAL 13

RIDING PIGGYBACK ON DEMAND

FOR POWER AND STEEL

14 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

DSIJ.in JAN 22 - FEB 4, 2018 I DALAL STREET INVESTMENT JOURNAL 15

16 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

18 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

DSIJ.in JAN 22 - FEB 4, 2018 I DALAL STREET INVESTMENT JOURNAL 19

20 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

CSR Aims To Ensure That

22 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

Prakash Reddy Editor-in-Chief, Corporate Social Focus – A CSR Magazine

DSIJ.in JAN 22 - FEB 4, 2018 I DALAL STREET INVESTMENT JOURNAL 23

Dabur Helps 22 Villages Achieve

24 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

26 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

Robust CSR Can Have A Positive

30 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

George Alexander Muthoot

CSR Activities Create A Robust

32 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

DSIJ.in JAN 22 - FEB 4, 2018 I DALAL STREET INVESTMENT JOURNAL 33

Our CSR policy further encourages us to

Pavel Podder, CEO, Manappuram Foundation

DSIJ.in JAN 22 - FEB 4, 2018 I DALAL STREET INVESTMENT JOURNAL 35

CSR – Taking The Corporate From

Ms. Rima Pradhan, Sr. Vice President, Marketing, Viviana Mall

36 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

Enough Ammunition In The

38 DALAL STREET INVESTMENT JOURNAL I JAN 22 - FEB 4, 2018 DSIJ.in

INCENTIVES FOR THE SECTOR

There are incentives for defence exports

Haresh Mehta, Chief Institutional Trader, First Global

DSIJ.in JAN 22 - FEB 4, 2018 I DALAL STREET INVESTMENT JOURNAL 39

Anita Gandhi, Whole Time Director, Arihant Capital Markets

Defence Stocks Performance Indian companies are