Top 100 Companies

CONTENTS Vol. 32 No.
07 MAR 6 - 19, 2017
Recommendations
Cover Story 132 14 Choice Scrip
16 Low Priced Scrip
18 Hot Chips
Regulars
08 Editors Keyboard
10 Company Index
12 Market View
20 Technicals
Creating Wealth Via Tech Route In The Days 138 Query Board
144 Letter to Editor
Of Disruptions And Tougher Competitions 146 Kerbside
24
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Analysis consisting of more than
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investmentInclusion Making
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44
Special Report
Managing Your Portfolio
Special Report In The Smartest Manner
130 The Best Of DSIJ Products Recommendations
4 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in
CONTENTS Interview
Vol. 32 No. 07 MAR 6 - 19, 2017
100 111 121

Kiran Mazumdar Shaw Sarv Saravanan Dinesh Garg
CMD, Biocon Senior Vice President and General Executive Vice President, Sales &
Marketing, TTK Prestige
101 Manager, Dell EMC
Ashishkumar Chauhan 112 122
MD & CEO, BSE Aditya Dhillon
N. H. Bhansali
103 CEO- Finance , Strategy & Business Head of Operation, Talwalkars
Ravinder Pal Singh Development, Emami Better Value Fitness
Head of IT and Innovation
113 123
Air Vistara
D D Mishra Sunil Mahale
104 Research Director, Gartner MD & Vice President, Nutanix
Prabal Basu Technologies India
Chairman & Managing Director, 114 124
Balmer Lawrie & Co. Sangram Kadam
Navneet Saraf
AVP and Head, KPIT Technologies
106 Director, Technocraft Industries (I)
Dinanath Dubhashi 116 125
MD, L&T Financial Holdings Glory Nelson Mallavarapu Apparao
Senior Vice President - IT, SpiceJet CMD, Centum Electronics
107
Adi Godrej 117 126
Chairman, Godrej Group Madhusudhan KM Nischal Puri
Chief Technology Ofcer, Mindtree Strategic Consultant Brands, Lux
108
Sandeep Bakhshi
118 Industries
Sanjay Sharma 127
MD & CEO, ICICI Prudential Life
Head - Technology, Innovation & Pramoud Rao
Insurance
Customer Fullment, RBL Bank MD, Zicom Electronics Security
110 Systems
Subrat Mohanty 119
Senior Executive Vice President & Chandrahas Panigrahi 128
Head-Strategy, Ops, Bs & T & CMO and Business Director, Acer Bhavin Turakhia
Health, HDFC Life. India CEO & Co-Founder, Zeta

As We Turn 31, We Wish To Stand
By Your Investment Decisions For
Several Such Profitable Years
A
s I write this piece of editorial, a sense of happiness, pride and excitement engulfs
my heart. The reason is not an impressive GDP number released in the last week
of February or markets continuing to climb higher but it is our 31st anniversary.
Yes, you read it right--your most favourite and preferred investment fortnightly
has been celebrating its 31st anniversary this February-March. Thirty-one years
back this journey of providing Indias stock market investors reliable, verified and well-
researched information was kicked off by Dalal Street Investment Journal from Indias
commercial capital. During the years passed by we have served millions of investors across the
length and breadth of the country and also across the geographical boundaries. Today, we have
earned the distinction of being the best and most trusted fortnightly investment publication.
And all these distinctions come to us just because of your continued support and standing by us
during all the seasons. Team Dalal Street Investment Journal remains grateful to all your
support and trust bestowed on us.
Meanwhile, a set of highly impressive GDP numbers were shared by the Central Statistical
Organisation data suggested that the gross domestic product of India in the third quarter of
FY17 grew by 7 per cent sweeping away all the apprehensions post the demonetisation move.
Markets took a clue from the numbers and climbed steep getting closer to 29000 mark. What
can be a better beginning of a fierce summer--a sweetened deal coming from the capital market
plunging millions in happiness. I am sure markets will take further positive clue from the
results of the five states legislative assembly elections which will come out during the second
week of March, just before the colourful festival of Holi.
I have been continuously over the past months emphasising on the fact that demonetisation has
been a short term disruption. This move by the government was meaninglessly criticised by
large number of economists and market experts who have mostly been speaking negatively
about the whole radical exercise. In your favourite fortnightly DSIJ (Volume 32, Issue No-4
Dated January 23-February 5), I had stated that, despite all the major financial institutions and
global multilateral agencies cutting Indias GDP target for FY17, the move by all the major
agencies was overdone and despite going through the demonetisation pain, India will be able to
achieve GDP growth in the range of 7-7.2 per cent which has turned out to be bang on the
target. It is disheartening to see economists and opposition only criticising the economic reform
agenda of the government and not talking about the positive steps which have benefited the
Indian economy immensely.

We have been through a long journey over transformation -- right from the reforms in 1991 to the advent of
technology which has changed the way business is done in the country. Technology has evolved over a period of
time from playing a nascent part to now defining the overall business dynamics of organisations which have built
upon the technology platforms and used technology to grow their business. On the wake of disruptions and
unexpected business threats from tech-based entities, technology and innovations have become the two major
tools for India Inc. to fight back the devils in their process of wealth creations.
Businesses have not only thrived on the usage of technology in their day-to-day operations, but have also built
around the technological eco-system. Though I support technology to the fullest but, at the same time, it comes at
a cost - it impacts the employment levels and, therefore, that is a negative aspect of technology too. In my view,
technology should be used to make ones product and services better, cutting down costs and eliminating
duplication of work. I feel technology should be used in the best way possible for a country like India where a vast
majority of people are still unemployed. Therefore, we as a nation should leverage technology to innovate the way
in which we can utilise the mass workforce the country has at its disposal for the welfare and well-being of one and
all. Our cover package this time is dedicated to the cause of talking about the companies and their efforts of wealth
creation even in the days and times of crisis. We have also spoken to a large number of industry captains to
understand what is happening within their companies, starting from business icons like Kiran Mazumdar Shaw,
Adi Godrej. I am sure you will find it an interesting read and the information shares by whos who of India Inc. will
also help you to form your investments decisions. As many as 150 wealth-creators crucial numbers also have been
shared with you in this edition which will guide you further, I am sure.
In this 31st edition of our offering, our focus shifts back to how a person should manage ones portfolio in the
smartest manner possible. Our research team has prepared a comprehensive report on how an investor should
effectively manage ones portfolio by following the cardinal rule of diversification of portfolio across asset classes,
in line with ones investment objective/horizons and risk appetite. I am confident that this report would go a long
way in helping our reader-investors in taking the right investment decisions at the right moment.
You will also find the best of DSIJ Product recommendations over the past years across all our product offerings.
For the entire landscape of our reader-investors, we have prepared an exhaustive report card of our top performing
recommendations. The report would certainly help all of you to gauge the performance of all our
recommendations and help us in our continuous endeavour to improve and build upon it in the coming years.
Have a safe summer as the mercury is rising and keep following us for all your investment needs.
Happy reading, happy investing!
V B PADODE
Editor-in-Chief
DSIJ.in MAR 6 - 19, 2017 I DALAL STREET INVESTMENT JOURNAL 9

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Chief Copy Editor Manoj Singh Gautam 8K Miles Software Services ........75 Geometric .......................................80 Omkar Speciality Chemicals .......87
Prakash Patil Gujarat Ambuja Exports ..............93 Persistent Systems .......................88
Marketing & Sales
Assistant Editor G M - Marketing & Sales A Gujarat Narmada Valley Fertilizers PI Industries ...................................53
Yogesh Supekar Farid Khan Accelya Kale Solutions .................75 & Chemicals ...................................94 Pidilite Industries .........................54
Research Adani Ports and Special Piramal Enterprises ......................55
Neerja Agarwal Mumbai: Economic Zone ..............................59 H Piramal Glass .................................56
(Sr. Manager Research) Nitin Zimur Agro Tech Foods ............................60 Havells India ..................................95 Polaris Consulting & Services .....88
(Sr. Manager - Sales) AIA Engineering ............................57 HCL Technologies ..........................96 Poly Medicure ................................89
Karan Bhojwani Ajanta Pharma ..............................50 HDFC Bank ......................................63 Polyplex Corporation ...................98
(Sr. Research Analyst) Bengaluru:
Alembic Pharmaceuticals ............51 Himadri Speciality Chemical .......91 Praj Industries ...............................93
Rashmi Wankhede N K Vishwanatha
Ashiana Housing ...........................79 Hinduja Global Solutions .............89 Precision Camshafts .....................83
(Research Analyst) (Sr. Manager - Sales)
Asian Star Company .....................94 Hindustan Petroleum Corp. .........69 Puravankara Projects ...................84
Bhagyashree Vivarekar Delhi: Avanti Feeds ..................................95 PVR ..................................................90
(Research Analyst- Editorial) Atul Verma I Quick Heal Technologies ..............81
Lohit Bharambe Senior Manager- Sales & Marketing) B ICRA .................................................78 R
(Sr. Research Associate) Bajaj Finserv ..................................96 India Tourism Development Ramco Systems ..............................84
Mutual Funds : Bajaj Holdings & Investment ......97 Corporation ....................................90 Rane Holdings ................................96
Abhishek Kumar Hemant Rustagi Balaji Amines .................................85 Indoco Remedies ...........................91 Reliance Power ..............................73
(Sr. Research Associate) Balkrishna Industries ...................86 Infosys .............................................92 Rolta India ......................................93
Tax:
Arshad Hippargi Jayesh Dadia Banco Products (India) .................90 ITC ....................................................93 RSWM ..............................................94
(Research Associate) Berger Paints India .......................74 Rupa & Company ..........................88
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Managing Director Bharat Petroleum Corporation ...99 Jindal Stainless .............................92 Sharda Cropchem ..........................77
Rajesh V Padode Bharti Infratel ................................54 JSW Energy ....................................93 Shemaroo Entertainment ............82
Biocon .............................................58 Just Dial ..........................................76 Shilpi Cable Technologies ............95
For Customer Service Bliss GVS Pharma ..........................80 Kalyani Steels ................................87 Shree Cement ................................96
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020-49072600 CRISIL ..............................................68 Marico .............................................67
Bengaluru Cummins India ...............................55 Marksans Pharma .........................85 T
Boston Financial Advisory Group, # 54, 3rd Floor, 13th Main, 17th Cross, Dabur India ....................................56 Maruti Suzuki India ......................86 Tata Consultancy Services ...........79
HSR Layout, Bengaluru - 560102 080-25724800/600 Dai-Ichi Karkaria ...........................96 Media Matrix Worldwide Ltd.......87 Tata Elxsi ........................................77
Dalmia Bharat ...............................89 Meghmani Organics ......................86 TeamLease Services .....................89
Delhi 8800978622 Dalmia Bharat ...............................90 Mindtree .........................................87 Tech Mahindra ...............................56
Dalmia Bharat Sugar & Ind. .........91 Motherson Sumi Systems ............96 Tide Water Oil Company (India) .57
To advertise, mail us on ads@dsij.in Divis Laboratories ........................92 Motherson Sumi Systems ............66 Titagarh Wagons ...........................99
Dr. Lal Pathlabs .............................92 MPS ..................................................77 Torrent Pharmaceuticals .............51
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Market Watch In domestic economic
data, Q3 GDP data
surprised on the upside as
UP Election Results May Impact it came in at 7 per cent

which defied expectations
Equity Markets Movement

thereby making India the
I
fastest growing major
economy in the world
ndian market continued its bull
run from the lows touched in
Strong rally has also been testimony to
the fact that Indian markets are back on
ahead of China
late December 2016 post the the global investors radars which has
cacophony surrounding the reflected in the inflow numbers. Auto sales numbers for the month of
negative impact of February also came in more-or-less in
demonetisation on the countrys Global markets too strengthened further, line with expectations. In one of the big
economy. The benchmark primarily led by the US equity markets developments, government made its
indices have delivered close to which are on one of the best bull run intention clear of implementing GST,
14 per cent in returns in the past two ever since the change of guard in the landmark taxation reform, from July
months. The stupendous rally has been Washington DC. Dow Jones and S&P 1, 2017.
aptly justified by the just released Q3 500 delivered returns of close to 2 per
GDP numbers which came in at 7 per cent. Other global markest also remained Going ahead, all the eyes would be on
cent, which was higher than the estimates upbeat during the past two weeks. Asian the outcome of assembly polls especially
of economists and market participants. markets were also high in spirits post that of Uttar Pradesh which will be a
factories data for the month of February referendum of sorts on the NDA
Indian market has also been supported by showed improvement in key markets like government and its economic policies.
strong global equity markets which have China and Japan. Among commodities, Among global events, FOMC meet in
on a continuous basis hit new highs on crude continued to hover between the mid-March will be keenly watched
the back of strong global cues and narrow range of USD 50-55 per barrel. alongside key economic data emanating
economic data. out of major global economies. DS
In domestic economic data, Q3 GDP 13th Feb 28th Feb Gain/Loss

Indian benchmark indices continued data surprised on the upside as it came in Indices
2017 2017 (%)
their strong upside momentum as both at 7 per cent which defied expectations
Dow Jones Ind 20,412.16 20,812.24 1.96
Sensex and Nifty generated returns of thereby making India the fastest growing
S&P 500 2,328.25 2,363.64 1.52
1.43 and 1 per cent, respectively, despite major economy in the world ahead of
market consolidating at higher levels. China. Eight core industries grew by 3.4 NASDAQ 5,763.96 5,825.44 1.07
Equity markets came close to kissing per cent in the month of January. FTSE 100 7,278.92 7,263.44 -0.21
distance of touching their all-time highs. Manufacturing PMI rose to 50.7 in DAX 11,774.43 11,834.41 0.51
In the previous months, the mid-caps and February from 50.4 in January, CAC 40 4,888.19 4,858.58 -0.61
small-caps outperformed the broader indicating of things getting back to Hang Seng 23,710.98 23,740.73 0.13
market indices as they delivered returns normalcy post the negative impact of
Nikkei 19,459.15 19,118.99 -1.75
in excess of 1.8 per cent. On the sectoral demonetisation.
front, metals, IT and realty were the Performance Of Indices Net Investment In Equity Markets (`/Cr)
biggest gainers for the period under 14th Feb 28th Feb Gain/Loss Date FIIs DIIs
review as they gave returns of 2.34, 2.07 Indices
2017 2017 (%)
14-02-2017 317.85 -3.2
and 1.55 per cent, respectively. On the SENSEX 28,339.31 28743.32 1.43
losing side, auto, power and FMCG 15-02-2017 -16.43 248.98
Nifty 8,792.30 8,879.60 0.99
stocks lost ground as they corrected by Mid-cap 13342.59 13552.22 1.57
16-02-2017 253.62 846.11
one percentage point. Small-Cap 13438.83 13690.81 1.88 17-02-2017 -196.37 -5631.99
Auto 21919.81 21486.06 -1.98 20-02-2017 8059.29 827.9
Looking at the fund flow movement, FIIs Bankex 23226.47 23482.44 1.10 21-02-2017 -- 1535.44
and DIIs swapped places as FIIs became FMCG 8876.01 8799.89 -0.86 22-02-2017 -1953.62 917.97
net buyers in the Indian equities for the IT 10165.9 10376.1 2.07 23-02-2017 251.59 -445.04
period as they pumped in close to Rs Metal 11621.09 11893.05 2.34 27-02-2017 688.02 263.79
7259 crore, as against DIIs pulling out Rs Power 2220.86 2195.78 -1.13 28-02-2017 -145.33 --
1440 crore from the domestic markets. Realty 1472.24 1495.06 1.55 Total 7258.62 -1440.04

Recommendations Equity
Supreme Industries
financial front, Supreme Industries top
MAY BE OF SOME 'SUPREME' RETURNS line increased 4.52 per cent to `4357
crore at the end of December 2016. The
companys bottom line also rose 8.22 per
cent to `397 crore in December 2016.
Supreme Industries total debt stands at

HERE IS WHY `413 crore at the end of FY16. The
companys debt to equity ratio stood at
Wide product mix 0.3x in FY16. Its interest coverage ratio of
Strong organic growth model 11.65x in FY16.
Firm future strategy The company has a large and diverse
S
production network that saves on freight
costs and time to market its products. Its
upreme Industries is one of the portfolio of several patented products &
largest plastic processors in brands with focus on value added
India, processing over 3 lakh products. Supreme Industries has
MT annually. The company has in-house design centre that enables it to
presence in the Indian plastic launch innovative products.
industry for over last 50 years under the
present management. It has a diversified Best of LAST ONE Year Supreme Industries has growth plans as it
revenue model with a large product Name of Reco CMP Gain will increase plant size from 25 to 28 by
portfolio across five verticals. Company Price (`) (`) (%) 2018-19 with a capex of `1500 crore. The
Techno Electric & Engg 217.00 372.00 71.43 company will kick off manufacturing at
Supreme Industries also has 29.99 per Rajasthan, Assam and southern India. It
Mahanagar Gas 518 874.00 68.73
cent stake in Supreme Petrochem. has plans to increase reach in existing
Arvind Ltd 285.00 380.00 33.33
Supreme Petrochem is one of the largest locations and capture market share in
single sites Polystrene (PS) producer Steel Authority of India 48.5 61.00 25.77 untapped locations. The company is also
accounting for 2 per cent of the global Reliance Industries 987 1238.00 25.43 to strengthen its channel partners and
capacity and it also owns 60 per cent of (Closing price as of Feb 28, 2017) increase the distribution network, which
the domestic installed capacity. It also at present consists of over 2800 channel
has capacity of Polystyrene (PS) 2.55 profit also increased 6.73 per cent to partners. Supreme Industries will also
lakh TPA, compounded polymers 30000 `282 crore in 9MFY17 as compared to the increase current export turnover of
TPA, EPS - normal & cup grade at 65000 same period of the previous fiscal year. around 2.50 per cent of total turnover,
TPA and XPS 1 lakh M3. significantly over next five years.
On segmental revenue front, Supreme
On nine-month financial front, Industries has earned 55 per cent from On valuation front, Supreme industries is
Supreme Industries revenue increased plastic piping, 23.38 per cent from trading at TTM PE of 31.59x against
4.59 per cent to `3180 crore in 9MFY17 packaging products, 7.42 per cent from industry peers such as Time Technoplast
as compared to the same period of the consumer products, 14.13 per cent from (15.61x) and Uflex (5.86x). At the same
previous financial year. The companys industrial products, 0.7 per cent from time, the industry PE is trading at 15.01x.
EBITDA too rose 3.41 per cent to `519 composite products in 9MFY17. On growth story, we recommend our
crore in 9MFY17 on a yearly basis. Its net On trailing twelve month (TTM) reader-investors to BUY the stock. DS
CMP
Monthly Stock Market Returns Shareholding Pattern Last Five Quarters - Consolidated (`/Cr)
BSE Code: 509930(`) 31/12/2016 Particulars Dec'16 Sep'16 June'16 Mar'16 Dec'15
CMP: `1002
FV: `2 Promoter 49.71 Total Income 1107.42 882.88 1189.34 1200.31 992.69
BSE Volume: 1063
Date:28/02/2017 FII 10.13 Other Income 0.40 1.56 0.60 -0.97 0.40
Operating Profit 185.18 134.90 201.72 214.27 155.40
DII 18.13
Interest 8.47 8.64 9.72 8.13 7.27
Others 22.03
Net Profit 90.18 57.62 101.55 98.34 76.31
Total 100 Equity 25.41 25.41 25.41 25.41 25.41

Atlanta
BUILD ON SUPER HIGHWAY Highways Authority of India (NHAI).

The company will work on six-laning of
road from 401.2 km to 494.41 km of
NH-8 in Gujarat in hybrid annuity mode
under NHDP Phase V from the NHAI.
HERE IS WHY
`1292 crore road project in Gujarat from the On financial front, Atlantas revenue
NHAI boosted almost three folds to `148 crore
in 9MFY17 as compared to the same
Positive ques from Micro economic period in the previous financial year. The
environment companys EBITDA too rose tremen-
dously from `13.33 crore in 9MFY16 to
Strong financial performance
`96.2 crore in 9MFY17. It has witnessed
I
turn around in profitability and posted
net profit of `60.86 crore in 9MFY17
ndia's infrastructure sectors against net loss of `9.81 crore in
capital expenditure in FY18 is 9MFY16.
budgeted to increase 10.7 per cent PRICED SCRIP
at `396135 crore. As much as On TTM basis, Atlantas top line
`64900 crore has been budgeted Best of LAST ONE Year decreased 14.58 per cent to `231 crore at
for roads that include construction Name of Reco CMP
the end of December, 2016. The
Gain
budgets for highways, rural and coastal Company Price (`) (`)
companys EBITDA increased more than
(%)
roads. Governments stance on three and half times to `119 crore in
developmental strategy will benefit V2 Retail 48.20 190.00 294.19 December, 2016. It posted net profit of
companies like Atlanta. There have been Manappuram Finance 35.20 97.00 175.57 `74 crore in December 2016 against
though anticipations over impact on Jasch Industries 31.30 55.00 75.72 net loss of `5.25 crore in December
construction and engineering sector due ADF Foods Ltd 83.70 145.00 73.24 2015.
to demonetisation drive. There may be National Aluminium Co. 41.95 69.00 64.48
short term pain but we can see gain in (Closing price as of Feb 28, 2017) Atlanata has total debt to equity at 2.4x
long-term also. in FY16. The companys interest
with approximately eight kilometre coverage ratio stands at 0.14x in FY16.
Atlanta is in the business of contracting waterfront, near Surat. On valuation front, Atlanatas PB ratio is
activities, such as construction and pegged at 1.74x against peers such as
development of infrastructure. The Its infrastructure development activities NELCO (13.05x), Brahmaputra Infra
company is involved in the business of include, construction of roads, highways, (0.63x), Noida Toll Bridge (0.51x). The
infrastructure development on engineer- bridges and runways on BOT and company has latest book value of
ing, procurement and construction DBFOT basis. The company is also `48.4. Due to negative TTM EPS, we
(EPC) basis and public private partner- involved in real estate development, cant evaluate PE ratio for the company.
ship (PPP) model on build, operate and tourism, infrastructure business segment At the same time industry PE of 19.19x.
transfer (BOT) and design, build, and mining of coal and lime stones. On astonishing financial performance in
finance, operate and transfer (DBFOT) FY17 till date and bagging new orders
basis. Atlanta is developing a tourism Atlanta has secured `1292-crore worth from NHAI, we recommend our
project spread over 4000 acres of land road project in Gujarat from the National reader-investors to BUY the stock. DS
CMP
Monthly Stock Market Returns Shareholding Pattern Last Five Quarters - Standalone (`/Cr)
(`) 31/12/2016 Particulars Dec'16 Sep'16 June'16 Mar'16 Dec'15
Promoter 70.86 Total Income 42.76 41.15 64.14 83.09 18.94
FII 0.06 Other Income 2.28 0.07 0.03 0.83 0.02
Operating Profit 31.91 23.48 43.20 23.19 3.79
BSE Code: 532759 DII 3.04
CMP: `84.20 FV: `2 Interest 5.83 6.96 7.26 8.82 3.72
BSE Volume: 291317 Date: 28/02/2017 Others 26.04
Net Profit 20.40 12.57 27.89 13.15 -1.21
Total 100 Equity 16.30 16.30 16.30 16.30 16.30

INDIA HOME LOAN CMP - `108
BSE CODE Volume Face Value

530979 48161 `10
I
ndia Home Loan offers retail home Scrips Movement
loan product for affordable housing
segment. JM Financial has equity of
24.5 per cent in the company. On financial
front, India Home Loans NII increased 11
per cent to `78.5 lakh in Q3FY17 as
compared to the same period of the
previous fiscal year. The companys other
income grew by 177 per cent to `6.3 lakh in
Q3FY17 on yearly basis on the account of
profit on redemption of mutual funds and
interest received on deposits. India Home Last Seven Days Volume Table
Loans revenue increased 34.89 per cent to (No. of Shares)
`3.95 crore in 9MFY17 as compared to
Days Volume
same period in previous financial year. We
believe that with experienced management 17-02-2017 26,982
on board, governments huge thrust on 20-02-2017 60,372
21-02-2017 26,765
affordable housing sector, the company will
22-02-2017 39,085
continue to command higher valuation in
23-02-2017 1,33,080
future. We continue to recommend BUY,
The scrips in this with a price target of `137 with a stop loss
27-02-2017 25,504
column have been of `100.
28-02-2017 48161
recommended
with a 15-day investment
horizon in mind and JINDAL STEEL & POWER CMP - `126
carry high risk. Therefore, BSE CODE Volume Face Value
investors are advised to 532286 4357732 `1
J
take into account their risk Scrips Movement indal Steel & Powers business segments
appetite before investing, include iron & steel, power and others.
as fundamentals may It has an installed steel-making
capacity of over 6.75 million tons per
or may not back the annum (MTPA); an installed power
recommendations. generation capacity of approximately 5060
megawatts, and pellet-making capacity of
over nine MTPA. On financial front, Jindal
Hot Chips of Last One Month Steel & Powers top line increased 9 per
cent to `14760 crore in 9MFY17 as
Reco. Peak Likely compared to same period in previous
Price After Gain
(`) Reco* (%) 4357732
Last Seven Days Volume Table
financial year. The companys EBITDA too
rose 22 per cent to `3140 crore in 9MFY17
(No. of Shares)
Issue No 5 ,Feb 6 - 19 , 2017 on yearly basis. Its EBITDA margin
Days Volume expanded by 200 basis points to 21 per cent
Rashtriya Chemicals & Fertilizers 57.85 64.00 10.63
NCC 83.00 88.00 6.02 17-02-2017 13,26,363 in 9MFY17 on yearly basis. Jindal Steel &
Issue No 6 ,Feb 20 - Mar 5, 2017
20-02-2017 65,16,836 Power posted net loss of `2441 crore in
21-02-2017 76,47,421 9MFY17 against net loss of `2449 crore in
RCI Industries & Technologies 241.00 244.00 1.24 22-02-2017 42,89,727 9MFY16. We recommend to BUY the
Sumeet Industries 34.05 35.40 3.96 23-02-2017 62,90,074 stock with a target price of 145 and with a
*Highest price after our recommendations 27-02-2017 57,45,192 stop loss of 115.
DS
28-02-2017 43,57,732
(Closing price as of Feb 28, 2017)

Technicals Equity
NIFTY Index Chart Analysis
Soon Nifty may head towards its all-time high, only if BJP gains UP
N
ifty after registering a fresh Roadmap for the next 15 trading sessions
52-week high, a record Ideas Nifty Levels Action to be Initiated Probable Targets
closure, retreated from the Close above 8970-9000 on the weekly chart
Resistance for the medium term 8970-9000 9120-9240
higher levels amid would give further momentum to the bulls.
February series F&O Support for the medium term 8800-8820
Close below 8800-8820 on the Daily chart
8700
expiry. However, the start of the last week would change the trend and trigger retreat.
of February was dull as investors
remained wary ahead of the UP state failed to sustain above these level on a a crucial support level for the Nifty. A
elections' outcome. Global markets, weekly time frame. Though an close below level of 8800-8820, may open
specifically the Asian peers also interesting pattern is unfolding on the up for correction up to level of 8700.
contributed to the fall ahead of Donald Nifty, the cup and handle pattern on the
Trump along with FED speakers address weekly chart, the formation of pattern Going forward, important event is the
to the Congress and the US economic started off during March 2015 when it hit outcome of election results which will
data due on February 28, 2017. the record high of 9119 level. Nifty gave be announced in the mid of March
an obvious correction from the multiple 2017. With this, Nifty may remain
Technically speaking, the correction resistances at 8980-8990 levels. The Daily volatile to tentative as long as there is no
depicted profit booking after five RSI too was quoting at 75 levels, which clarity on the outcome of elections.
consecutive weekly upbeats in the depicted an over-bought zone. Currently, However, the heavy weight defensives
benchmark indices. On the daily the Nifty is trading below its important from IT sector may continue to pull
chart, the Nifty Index formed a 'Doji' psychological mark of 8900. Going Nifty on the upside owing to the buyback
like candlestick pattern as on February forward, the zone of 8970-9000 is a optimism that the companies are carrying
22, 2017 and it was followed up with crucial resistance area, as we have with itself. Moreover, Pharma too is
another small negative candle with highlighted that Nifty has touched the expected to refrain markets from
long upper wick, suggesting tentativeness level of 8960-8980 numerous time in the witnessing a heavy fall after speedy
at higher level. However, DIIs have past two years or so, but has not managed approval by US FDA on Indian generic
been the constant buyers in the to close above this level. Hence, Nifty if drugs. However, as the long-term picture
markets. manages to close above the level of for Nifty remains strong and it hovers
8970-9000 on a weekly basis, its likely to above 8970-9000 on a closing basis,
Its for the fourth time that Nifty has scale up to levels of 9120-9240. Whereas, we may see Nifty heading to fresh all
touched the 8960-8980 levels, but it has on the downside the zone of 8800-8820 is time high.

Technicals Equity
STOCK RECOMMENDATIONS
MPHASIS .............................. BUY ................................. CMP `595

BSE Code : 526299 Target 1 ..... `621 | Target 2 ..... `650 | Stoploss....`555 (CLS)
Mphasis is currently trading at `595. Its 52-week
high/low stands at `621.75 / `414 which have been
made on June 27, 2016 and February 29, 2016.
Considering the weekly time frame, the stock has
been trading with higher tops and higher bottoms
since February 2015, but had witnessed a
consolidation from June, 2016. The stock formed
inverse head & shoulders like pattern though on
the top and recently reported a multiple resistance
breakout at 580 level. This suggests a bullish
continuation of up to 621 in the first place, followed
by 650 level. The 14-period RSI is quoting at 65
which suggests some more upside potential for the
stock. Going forward, the stock may witness some
volatility or a correction in the form of a pullback of
up to 580 level, but it will see a potential upside rally
from the said levels or from current levels. With this
we suggest, a BUY in the stock from CMP to `580
level for a target of `621 followed by `650 and a stop
loss of `555 which is just below the 50% retracement
level of the current upward rally.
DISH TV INDIA .............................. BUY ........................ CMP `96.25

BSE Code : 532839 Target 1 ..... `102 | Target 2 ..... `109 | Stoploss....`88(CLS)
The stock of Dish TV India is currently trading at
`96.25. Its 52 week high and low stands at `109.9/
`65.25 and have been made on August 01, 2016 and
February 29, 2016. Considering the weekly time
frame, its the second consecutive positive week for
the stock after it has broken out of consolidation with
multiple support at 80 level. the stock has given a
downward sloping trendline breakout at around 95
level with justifiable volumes. Last week, the stock
broke above its 50 days and 100 days EMA levels at 91
and 88 respectively. Moreover, the 14-period RSI is
quoting at 60 which means bullish for the stock. With
this, the stock may continue to move northwards and
hence we advise traders to initiate a long position in
this stock at `96.7-93.4 with a price target of `102
followed by `109, stop loss should be maintained at
levels of `88.
DS
(Closing price as of Feb 28, 2017)
*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
L&T Finance Holdings
LOOKING FOR UNLOCKING VALUE INVESTMENT

T
he short term jolt suffered by investors account for 28.6 per cent and term goals so as to drive efficiency to
the non-banking financial 22.9 per cent, respectively. In the lower cost-to-income ratio. The
services (NBFC) sector due Asia-Pacific, India is among the top five companys sell-down CoE is expected to
to demonetisation drive in countries in terms of HNIs. RBI has increase fees and balance portfolio risks.
the country have been put allowed 100 per cent foreign investment L&T Finance Holdings medium term
behind. This is reflected in the financial under the automatic route in other goal is to shift majority of capital to
numbers of the NBFC sector which give financial services. prioritised segments. The company is
confidence that NBFCs have grown also looking for unlocking value
within their space. The asset STRATEGY investment. Its long-term goal is to build
management industry in India is among L&T Finance Holdings has changed its strong structural capabilities for
the fastest growing in the world. The strategy and is working hard to deliver as sustainable profitable growth.
total AUM of the mutual fund industry per schedule. The company has three
clocked a CAGR of 12.4 per cent over stage strategy as transform, focus and MIND-BLOWING FINANCIAL
FY0716. There are 42 asset deliver. It has reoriented its strategy to PERFORMANCE
management companies operating in the focus on select products and deliver On the financial front, L&T Finance
country till FY16. The total AUM of steady improvement in RoE. L&T Holdings net sales increased 15.89 per
mutual fund industry was recorded at Finance Holdings is focusing on three cent to `6178 crore in 9MFY17, as
USD 206.8 billion. key lending businesses as rural, housing compared to the same period in previous
and wholesale. The company is focusing financial year. The companys operating
UNDERSTANDING BUSINESS on areas augmented by value creation in profit excluding other income too rose
L&T Finance Holdings is a non-banking the AMC space and fee income from 13.28 per cent to `4359 crore in 9MFY17
financial institution-core investment wealth management. It has set short on a yearly basis. Its net profit also
company. The company's segments
include retail and mid-market finance,
wholesale finance, housing, investment
management and other business. It
offers a range of financial products and
services across retail, corporate, housing
and infrastructure finance sectors, as well
as mutual fund products and investment
management services.
NBFC SECTOR
The countrys financial services sector
consists of the capital markets, insurance
sector and non-banking financial
companies (NBFCs). It is projected that
national savings in India will reach US$
1,272 billion by 2019. Over 95 per cent of
household savings in India are invested
in bank deposits and only 5 per cent in
other financial asset classes. This leaves a
big gap to be filled up by NBFCs in
future. The asset management industry
in India is amongst the fastest growing in
the world. Corporate investors
accounted for around 45.9 per cent of
total AUMs in India, while high
networth individuals (HNIs) and retail

How do you look at the overall state
of the economy? Keep faith in us, we have been
The economy is at the crossroads. The government
has done a lot in the last three years to kick start and
give push to the economy. First of all, as far as fiscal
delivering & will deliver
discipline is concerned, that is, so far as the rate of Dinanath Dubhashi
fiscal deficit is concerned that has been controlled by MD, L&T Financial Holdings
the government right away. Inflation has been
controlled and interest rates are down. Therefore,
these are good signs of the economy, but at the same
time, there are slowdowns because of
demonetisation. Farm income has just got beaten
down, but the last two years were easing. As the
government puts more curbs on cash and tries to
control black money, it is good for long term but for
the short term, it is very mixed. We hope that, after
the state elections are over then some of the reforms
may pick up further till the 2019 general elections
which actually the economy needs. Economy needs
big investment infrastructure, housing and farms
which will kick economy further.
Could you elaborate on how the

company has managed to outperform
in earnings, despite external risks
such as demonetisation?
Nine months back, we had launched our strategy.
We were company which was a subsidiary of L&T,
but not doing well despite belonging to such a big
group. After studying all the rights and wrongs, we
came forward with new strategy. The strategy simply
states that we will do the right business, i.e., not
continue in business where we are not good at. We
will have simple organisation structure which will fantastic in fee income and has witnessed 29 per cent as against total
help to cut costs and be able to do business better income growth of 13 per cent in Q3FY17.
and faster. We will have the right quality of people,
i.e. we will not put up too many people at the top, Doing good in profitable products, reduction of non-profitable products in
rather we will have people in the field who will do the books, big reduction in cost and increased fee income contributed big
business and collections. Well have right kind of results. Cost-to-income ratio of the company was lowest ever in the history
supervision. This three-stage strategy has been of the company. Most of the times, miracles happen when they are simple.
launched nine months back. We have stopped about Our results are very simple which are explainable, scalable and sustainable.
14 products which were loss-making for the
company. We are getting funds from infra, rural and What are the companys strategies to tap untapped
housing themes. The negative driver for the rural markets in upcoming quarters?
company has been reduced. The company has To tap more, we have changed our entire strategy. Rather than following
witnessed double impact, by getting more business everybody elses strategy to increase branch network to grow market share,
in good products and reducing loss-making we have reduced our branch network; instead, we are getting help of big
products yield more profitability. Because of the technology and telecommunication players to penetrate into untapped
simple structure organisation, the cost has been markets.
reducing substantially. So, if you take Q3FY17, our
income increased by 13 per cent and the nominal We are concentrating on less branch structure and penetrating through
cost was down by 5 per cent. If you take inflation of technology. We are entirely paperless and entire operations are handled by
6 per cent, we have grown 12 per cent. This is smart phones. For rural outreach, we are providing smart phones to
majorly contributing to profits. Last, but not the employees and operations are functioned through that only, i.e. data entry,
least, fee income, i. e. underwriting fees, advisory disbursement and collections etc. The company is following asset light
fees. We have launched specific products to model. It is following digital and data analytics and investing a lot in it. In
concentrate on fee income. The growth has been fact, money was saved last year was all invested into technology.

Analysis Equity
boosted 17.18 per cent to `726 crore in FY16. The companys EBITDA too rose L&T Finance Holdings Ltd.
9MFY17 as compared to the same period 16.87 per cent in FY12-FY16. Its BSE Code : 533519 CMP (`) 116.25
in the previous fiscal. bottomline also witnessed a CAGR Particulars Amonut (` cr)
growth of 13.5 per cent in the last five Net Sales 8136.00
L&T Finance Holdings has successfully financial years. % Change 16.80%
delivered ROE of 12.81 per cent in Operating Profit 5997.63
Q3FY17 against 9.29 per cent in FUTURE PROSPECTS % Change 15.59%
Q3FY16. The companys increased ROE L&T Finance Holdings will continue to Net Profit 964.49
trajectory stays in line with strategic plan shed its non-core product lines and % Change 17.49%
targets, despite the demonetization event focus on those where it has a competitive Equity 1754.95
and substantial voluntary provisions. advantage as it aims for an 18 per cent EPS (`) 4.67
FV (`) 10.00
ROE by 2020. The company is in a
CMP (`) 116.25
On the segmental revenue front, L&T transformational stage and would focus
P/E (x) 24.89
Finance Holdings has earned 25.52 per on lending in the areas of renewable
Dividend Yield (%) 0.69
cent from rural business, 30.34 per cent energy, real estate, two-wheelers and
Book Value (`) 44.46
from housing, 44.14 per cent from tractors. Simultaneously, it will look to
(Trailing Four Quarter Data)
wholesale business in Q3FY17. exit areas like cars, commercial vehicles
and construction equipments. It had as Mahindra & Mahindra Financial
On the asset quality front, L&T Finance accumulated various product lines in the Services (25.68x), Bajaj Finance (45.93x).
Holdings gross NPA stood at 4.85 per run-up to applying for a banking licence. At the same time, industry PE is trading
cent in Q3FY17 with contraction of 102 at 20.22x which is quite in line with the
basis points on a yearly basis. The L&T Finance Holdings is bullish on companys TTM PE. Its PB is also
companys net NPA also reduced by 79 affordable housing and renewable trading at an attractive 2.62x as
basis points to 3.1 per cent in Q3FY17, as energy, both areas in which it has a compared to peers such as Mahindra &
compared to the same period in the sizeable exposure. The governments Mahindra Financial Services (2.47x),
previous fiscal. thrust on affordable housing had the Bajaj Finance (7.54x). The company has
potential to be a game-changer. given 0.69 per cent dividend yield to its
CONSISTENT PERFORMANCE shareholders. On simple structure and
L&T Finance Holdings topline On the valuation front, L&T Finance new strategy implementation, we
increased at CAGR of 19.58 per cent in Holdings trailing 12-month (TTM) PE is recommend our reader investors to BUY
last five financial years ending with trading at 21.2x as against its peers such the stock. DS

Communication Feature
We are looking
for strategic
acquisitions in
the healthcare
space
Partha DeSarkar
CEO, Hinduja Global Solutions (HGS)
What will be impact of Trump presence and local hiring becoming an capabilities adjacent to what we currently
policies on BPOs and KPOs essential for BPM companies. I offer - primarily in the healthcare payer
going forward as there will be would like to call out that HGS has and provider segment. HGS is also open
significant onshore operations in the US, to acquiring companies that can add new
threat of outbound projects? with nine delivery centers employing capabilities in digital, analytics, robotics
The US has been a key market and over 4,000 locals supporting US-based and machine learning that are relevant to
partner for the Indian IT/ BPM industry, clients. our core businesses, and help us establish
with over 60% of its $100 billion-plus a differentiator.
exports revenue coming from the How is the company
US. Studies suggest that American managing visa issues in Can you give us broader idea
corporates save $18 billion annually on about your geographical
an average from offshoring of their various countries?
non-core activities. These savings HGS is not in the business of exporting segmental revenue break-up?
are reinvested in new business H1Bs from India to the US hence it The US has traditionally been HGS
opportunities, innovation and creating does not have any impact on our biggest geography in terms of revenue
lower prices for consumers. HGS business. About 42% of our revenues are origination, with American Fortune 500
expects this strategic trend to continue in delivered onshore in the US, Canada and companies forming a significant part of
future too, though there could some UK by over 7,600 local hires. In fact, we our clientele. If you look at the most
challenges like delayed decision-making are hiring about 1,500 people in North recent quarter of FY 2017 (October-
due to uncertainty of policies in the America (Canada and the US) in 2017 to December 2016), the US accounted for
short-term. cater to rising client demand and 68.4% of our total revenue, Canada
new wins. 10%, UK & Europe 7.4% and India
With the rise of protectionism in major 14.2%. Contribution of India-originated
economies like the US and Europe, and Is company planning for business has increased from single
the subsequent impact, it would also be acquisitions of small digits two years ago to over 14% in Q3
important for India-based BPM players FY 2017, primarily due to traction
to focus on local delivery in the buyer companies to grow in future? from the acquired India CRM business
markets. From a sales-focused set-up, I We are looking for strategic acquisitions and growth in HRO and the payroll
see stronger onshore/nearshore delivery in the healthcare space to acquire new business.

Customer-orientation
forms the nexus of all
our activities
K B Agarwala, MD, RUPA & Co.
How has Rupa managed to Seamless Briefs, which are very different Right now, the contribution is very
keep its leadership position in from the products already available in marginal - around 2% of our total
the knitted garments the market. We hope to keep on adding turnover, which we aim to take up to
to this series in the times to come. 10% in the next two to four years.
segments?
RUPA is one of the leading knitwear How has technology played a How was the Budget 2017-18
manufacturing companies, which has role in product design, quality for the textile industry and
become synonymous with innerwear in
India. The brand permeates into every maintenance and customer- especially the knitted
household in the country with quality orientation of Rupas products? garments segment?
and consistency being major drivers At RUPA, we are committed to bring the Budget 2017-18 is slated to have a positive
behind its popularity. Our commitment latest technology and emerging global impact on the textile industry, especially
towards providing international quality trends to India, so that we can serve our the knitwear segment. The industry is
within competitive pricing is what keeps consumers with superlative products that predicted to achieve $350-billion target,
us ahead in the league. Research & are unmatched in quality and comfort. set by the Central Government of India,
Development is another major factor We employ the state-of-the-art German with the high allocation of funds for
that affects our leadership position in the machines for knitting, and use the latest end-to-end logistics solutions and labour
knitwear category in India and abroad. Japanese and German machines for skilling, in the coming years.
stitching. For fabric cutting, weve
What kind of innovations in installed State of the Art CNC Cutters, What are your future plans
products has helped Rupa which guarantee higher precision at the and how do you propose to
same time minimise consumption.
grow over the years? implement them?
We have always been very innovative in Apart from India, which other Customer orientation forms the nexus of
terms of fabric quality and cut. A couple countries are your products all our activities at RUPA. As a result, our
of years ago, we introduced Air Vests, future plans centre around maximising
which uses American Pima Cotton. The exported? Any other markets the consumer experience with higher
cut and feel of the product has been that you are looking at? What quality products at an affordable pricing.
widely appreciated across all categories. is the contribution of exports We are also looking at further
More recently, we have launched to your companys revenue? upgradation, process control, and
Frontline FX Series. Under this portfolio expansion, in order to provide
collection, we have launched Vests and At present, our international periphery the best user experience to our
various types of Briefs, including comprises GCC, Africa and Asia Pacific. customers.

Expert Speak
Share Selection Using PE Multiple
T
he PE Multiple (Price to financial parameters. Business growth has a positive impact on value and is not
Earnings ratio) has been one of captured by any of these ratios. Similarly intangibles like quality of management,
the most popular approach to accounting quality, employee friendliness are not considered when we base our
equity valuation. PE ratio of a decision only on few standalone ratios. However since PE is widely used when we are
company is calculated by dividing the comparing companies across industry or on an overall bases, in this article we will
current price of the share with its earnings focus on selecting stocks using a PE ratio technique and analyze results of the last five
per share. Thus PE ratio indicates a years to see if this strategy works.
number which is unit of company
earnings that an investor is willing to pay For analysis we select all non-financial listed companies with continuous financial
and hence it should be used to compare if history of last five years and applied filter to select companies with positive PE ratio
stock is cheap or expensive verses other (thus eliminating all loss making companies). Then we selected companies with
stocks in the same industry. market capitalization of over 10,000 Crore as on 15 February between 2012-2017
(this was done to eliminate small companies with poor liquidity and marketability).
A lot can be said about the ratio but a We had 222 companies which qualified on all the parameters.
general understanding regarding PE ratio
is that a growing company would have a We calculated year on year return for each of these 222 companies and divided these
higher ratio as compared to low growth companies in 6 portfolios. The average and median values of stock returns within
company and hence PE ratio is each of these portfolios were calculated. Since a low PE stock in 2012 can become a
considered as a proxy to the growth rate high PE stock the next year we assumed a holding period of one year. And so every
of a firm. If we have to make a year the portfolio may have new set of companies.
comparison between two stocks lets
Table 1: Average Stock Returns Y-o-Y Portfolio Framed Based on PE
name them as company XYZ which is Portfolio Holding period 2012-13 2013-14 2014-15 2015-16 2016-17
trading at a price of `10 with PE multiple PE Ratio >100 -25% -21% 64% -27% 15%
of 30 and company ABC which is trading PE Ratio 50-100 8% -4% 100% -15% 10%
at `1,000 with PE multiple 5; by looking PE Ratio 30-50 13% 13% 78% -8% 18%
at the price levels we can be misguided in PE Ratio 20-30 19% 22% 85% -10% 38%
our conclusion, but when we compare PE PE Ratio 10-20 9% 11% 86% -11% 38%
of these two stocks we will reach the PE Ratio 0-10 16% 8% 73% -3% 50%
correct conclusion that company ABC is S&P BSE Sensex Y-o-Y return 7.0% 4.6% 42.9% -19.0% 19.5%
cheaper. PE multiple is a simple way of Table 2: Median Stock Returns Y-o-Y of Portfolios Framed Based on PE
comparing stocks and identifying which Median returns Y-o-Y
is cheaper if all other financial Portfolio Holding period 2012-13 2013-14 2014-15 2015-16 2016-17
parameters are similar. PE Ratio >100 -23% -21% 45% -29% 3%
PE Ratio 50-100 7% -7% 94% -18% 6%
Value investing and growth investing are PE Ratio 30-50 17% 6% 76% -9% 17%
two different schools of thoughts. Adam PE Ratio 20-30 17% 14% 67% -14% 31%
Smith, Ricardo, Aristotle- tried to define PE Ratio 10-20 4% 1% 68% -14% 34%
value but unfortunately there is no PE Ratio 0-10 -2% -5% 58% -4% 50%
universally accepted definition of value. S&P BSE Sensex Y-o-Y return 7% 5% 43% -19% 20%
Best portfolio of the year is indicated with Green color and the worst is highlighted in Red color.
When it comes to exploring value of
stocks the definition and methods of Data in table-1 (which has average returns across all six portfolios), indicates that the
arriving at value are debatable. portfolio which has shares of companies with PE ratios between 0-10 has performed
better that the S&P BSE Sensex Return across all the years and average returns in year
Value investing is understood as 2015-16 and 2016-17 were maximum as compared to all other portfolios. This finding
investing in stock which has attributes is also supported in table-2 which has median returns. The worst portfolio across all
like low price earnings ratio, low price to the years is the one with shares of companies with PE ratio greater than 100.
book value ratio, or a high dividend yield From this analysis we can conclude that companies with low PE as compared to their
ratio. All such characteristics are no Industry PE have a better chance to appreciate as these are relatively cheaper. While
guarantee that the investment decision analyzing companies with low PE, if retail investors can also look at growth rate of
would be value accretive but these ratios sales and Return on Equity (ROE), it would help them in identifying value stocks. DS
can be a strong indicator of value and
shares which qualify on these ratios Dr. Ruzbeh J Bodhanwala, Professor, FLAME University, ruzbeh.bodhanwala@flame.edu.in
should be analyzed further on other CA. Shernaz Bodhanwala, Asst. Professor, FLAME University, Shernaz.bodhanwala@flame.edu.in

Expert Speak
Avoid Investing Habits Th at Can Derail Your Financial Future
investors often end up paying a heavy Investors often treat tax saving
price over different time periods. investments differently from other
Investors must get rid of this habit investments and do not choose options
immediately and start following a as a part of their asset allocation. No
financial planning process. Th is will help wonder, they end up making abrupt
in ensuring that they practice asset decisions at the fag-end of the financial
allocation in the right manner and year. By doing so, they not only make
remain invested at all times during their wrong investment decisions but also fail
decided time horizon to get the best from their tax savings
Hemant Rustagi
Chief Executive Ofcer, Wiseinvest Advisors
I
n todays complex financial world, it Delaying the start of investment investments. Investors will do well by
is quite challenging for investors to process making tax saving investment a part of
build a portfolio to achieve their Many investors make the mistake of not their overall investment plan as that will
investment goals. However, on the starting their investment process early allow them to align these investments to
positive side, there are numerous thinking that they dont have enough their long-term investment goals.
effi cient investment options available and time on hand. Needless to say, they end
hence if they follow the right investment up compromising big time as every 10 Allowing emotions to drive their
process, they can achieve investment years of delay in investment process investment decisions
success on a consistent basis. So, it is all requires them to invest 3 times more to Investors are often guilty of allowing their
about inculcating right investing build the same corpus as they would have emotions to drive their investment
habits. Unfortunately, many investors built if they started investing 10 years decisions. As a result, they stay away from
suffer as they imbibe some bad investing ago. Th erefore, investors must start potentially best asset class like equity
habits that not only put their hard- investing as soon as they start working during market downturns and end up
earned money at risk but also result in and increase investment amount investing aggressively during rising
leaving a gap between what they set gradually. markets. While they suffer because of
out to achieve and what they actually wrong decisions, they suffer even more
achieve after their defined time horizon. Combining investment with because they refuse to make changes as
Here are some of those bad investing insurance that would mean booking a loss. In
habits and how investors can get rid In our country, there are millions of reality, if they take corrective action, they
of them: investors who have been investing can not only correct the mistake but give
heavily into traditional insurance themselves a chance to recover losses and
Not having a household budget products thinking that these are best make money in the long run.
Spending without any budget often suited for them as they get to achieve
results in having too little to invest. Its an both i.e. insurance and investment. Compromising long-term goals for
evil that can destroy the finances of a Th e fact remains that these products short-term gains
family. On the other hand, a household neither provide the kind of returns one It is common to see investors attempting
budget, if made practically and followed, would expect from long-term to time the market to take advantage of
can ensure reduction in wasteful investments nor the quantum of risk the emerging market situations. More
expenditure and help in directing money cover one may require. Th erefore, it is often than not, they end up making
towards achieving different investment important to separate insurance from wrong decisions and suffer in the
goals. investment and choose the right process. More importantly, they form
products. For example, a combination of certain mis-perceptions about an asset
Investing without a plan a term plan and mutual funds can be a class like equity and stay away from it. Its
Investing without a plan is like travelling much better option. important to stay committed to ones
without an itinerary. In other words, Investing to save taxes in a pre-decide asset allocation as that helps a
investment becomes directionless and haphazard manner great deal over time. DS

Powered
By Innovation
Himadri Speciality
Chemical Limited (HSCL) Is
One Of The Very Few
Integrated Speciality
Carbon Chemical Company
Anurag Choudhary, CEO, HSCL
HSCL is a leader in Coal Tar Pitch in India with a market share of over 70%.
Over the last few years we have diversified our product portfolio with higher
margin niche products. We take pride in informing you all that we are
suppliers of Special pitch with high precision for supplies to DRDO for use in
long warhead missiles and Anode material for lithium-ion batteries used in
electric vehicles, mobile phones, etc. The Company is in the right direction
with a clear focus on not only increasing its leadership in the Coal Tar Pitch
and Carbon black but also developing newer higher margin niche products
with a greater potential to grow in future. We shall continue our efforts to
achieve a profitable growth in the years to come.
H
SCL has leveraged its facilities of the Company are recognized for supplies to DRDO for use in
deep knowledge of one of by the Government of India. long warhead missiles.
the most versatile HSCL is Indias leading and ONLY n Third largest Carbon Black
substances Carbon, to vertically-integrated speciality Carbon producer in India. Carbon black is
create a world-class Company, with a diversified product used in ALL BLACK PRODUCTS
Integrated Speciality Carbon Company. portfolio: that we see around. The Company
Under the leadership of Mr. Anurag is now focussing on application-
Choudhary, CEO, the Group has gained n Largest producer of coal tar pitch oriented engineered speciality
market leadership in most of its key in India with more than 70% carbon black range with high value
products and forayed into niche higher market share. Coal tar Pitch is very addition for usage in newer areas
margin products and newer markets in critical raw material for aluminium and markets
the Speciality Carbon Space. and graphite production impacting n Anode material for lithium-ion
HSCL has nine Zero-Discharge purity of metal, power batteries used in electric vehicles,
state-of-the-art manufacturing facilities consumption and life of anodes. mobile phones, etc. Among very
across India and China. The Company n One of the three Global few producers globally and only
has a strong emphasis on Technological manufacturers of Zero QI pitch producer in India
Innovation and Research. The R&D n Special pitch with high precision

Being vertically integrated, HSCL has secured supplies of Raw Materials with Consistent Quality, giving Company a formidable
advantage of producing customized products with Superior Quality.
The Product portfolio of HSCL has established a strong foothold across 20 countries globally. These products are predominantly
used by the downstream industries of Auto, Aluminium, Infrastructure etc. and have a higher growth potential in the years to
come. The Company is also
supplying Anode material used
in the Lithium-ion battery of
Electric Vehicles. We strongly
believe that Electric vehicles
are a reality and there is a huge
potential for lithium-ion
battery demand to grow
globally. The market for
advanced carbon is expected to
grow at 48% CAGR over the
next 5 years
The Company has developed a

Strong Professional Team from
US, Europe, Japan, Korea,
China to strengthen its
business and its reach globally.
The strength of the business is

visible from the increasing volumes in the business for all our products coupled with the its focus on introducing Higher Margin
Speciality Chemical products to its portfolio.
Our increasing focus on speciality

chemical and growth in volumes is
reflected in Companys financial
performance (9M FY17 vs 9M FY16)
Even when difficult times for the metal

sector for last three years, HSCL
reduced its debt burden by `339 crs.
Being a Leader in the Industry, HSCL

has been instrumental in bringing
livelihood and cutting-edge technology
for its products to the State.
(` in Cr.) The Company has always focussed

strongly on CSR. Currently, its
undertaking drinking water project by
building infrastructure connecting 5
villages and benefitting more than
3,000 families. Its also building pukka
houses for below poverty line families
in its surroundings.
The Company continues to focus on

adding innovative and specialized
products to its portfolio aiming to
create the largest global producer of
Carbon Chemicals.
(` in Cr.)

Integration of
Securities and
Commodity
Markets: An
idea whose time
has come
Saurabh Chandra
Chairman, Multi Commodity Exchange of India
Integration of securities and commodities markets to be successful has to

provide a level playing field by creating a fair and just environment, so
that the animal spirits generated by competition can drive the commodity
markets to the next higher level.
T
he Union Budget 2017-18 Similarly, the setting up of an expert Exchange Board of India (SEBI) and
has provided a road map for committee to study and promote considerable progress in this regard has
achieving high economic creation of an operational and legal already taken place. More importantly,
growth, in a sustainable framework to integrate spot market and this integration is expected to clear the
manner. Since infrastructure derivatives market in the agricultural path for participation of new classes of
is a necessary condition for kick-starting sector is a major step to take the benefits investors such as financial institutions in
the investment and growth cycle of the of electronic trading for commodities to commodity derivatives market, which
economy, high allocative priority has all stakeholders. are so far barred from participating in
been given to infrastructure creation. this market. The Commodity Derivatives
The total budgetary allocation for A significant announcement in the Advisory Committee (CDAC) of SEBI
infrastructure development in 2017-18 at Union Budget is for integrating the has extensively deliberated on the issue
`3,96,135 crore, is 13.5 per cent higher different segments of the financial of entry of new participant categories in
than the current years allocation (budget markets. In his Budget speech, the the commodity derivatives market and
estimates). As for the impact of such Finance Minister announced that The decisions on the basis of its
allocation on commodity markets, commodities and securities derivative recommendations would help in the
higher expenditure on rural roads, markets will be further integrated by development of commodity markets.
transportation, housing, skill integrating the participants, brokers, and
development centres, etc. is expected to operational frameworks (Ref: Annex I There is a broad agreement on
channelize private investment in areas to Part A of Budget Speech). The strengthening the commodity derivatives
which are ancillary to commodity integration of the operational market by undertaking reforms to
derivatives market such as warehousing, frameworks between the two segments is broaden and deepen the market. An
quality testing and grading centres. being considered by the Securities and important consideration for potential

hedgers to minimise risk in an exchange instruments for investment will be investors. The appeal for this segment as
platform is the impact cost of trade, available to retail investors. an attractive investment proposition
which is a direct function of the liquidity arises from the benefits it provides for
on the exchange. Thus, a vibrant Banks have a special role to play in Indias portfolio diversification and a hedge
domestic market in commodity commodity markets. Their near- against inflation. It has been found that
derivatives can be created if access is universal presence places them in a over a long period, the risk-weighted
provided to a large variety of unique position to connect millions of returns (RAR) from investment in the
participants, who while participating in stakeholders of the commodity commodity derivatives market are better
the exchange-traded commodity ecosystem to the commodity derivatives than those in other comparable asset
derivatives market manage their risks, marketsa low risk, high reward classes. It has also been historically
inject liquidity, lower the impact cost and proposition. Many of these stakeholders experienced that commodities are less
make the market more attractive for are unable to trade in commodity volatile as an asset class compared with
potential hedgers. This is a virtuous cycle derivatives because they are unaware of other asset classes, while the returns are
which needs to be created and nurtured the modalities of such trading, or do not comparable, making commodity
to further develop Indias commodity have the wherewithal or knowledge for derivatives an attractive diversification
derivatives market. such trade. The example of several proposition for inclusion in investors
developing countries demonstrates that portfolios.
Entry of financial institutions banks can handhold their customers by
in commodity markets creating special products for financing Integration to the last mile
their margins, aggregating several small
To meet the abovementioned objective, borrowers or providing innovative Given the benefits of integrating the
financial institutions should to be solutions so that their customers can participants of the securities and
permitted to trade on Indias commodity manage risks arising out of commodity commodity markets, the Union Budgets
derivatives market. Currently, only price volatility. announcement to this effect has the
non-financial firms and individuals are potential to unleash a new wave of
permitted to take positions in Indias Entry of institutions such as FIIs/FPIs growth and development in the
commodity derivatives markets. and Alternative Investment Funds (AIFs) commodity derivatives market. At the
Financial institutions such as banks, can only strengthen the commodity same time, to maximise benefits, it is
mutual funds, pension funds, insurance derivatives market. Apart from providing desirable that the integration of
companies and foreign investors are not access to many investors who otherwise participants and practices of the two
allowed to trade in this market. The are unable to enter the market, markets be done in a manner that
participation of these entities is essential participation of these large institutions extends the benefits of the securities
not only for making the commodity would provide the much-needed depth market to the commodities market, so
derivatives market more robust and and liquidity, especially in far-month that the participants find it as attractive
inclusive, but also to provide the Indian contracts. Higher liquidity in far month to trade as in the securities market. For
investing public more options for contracts would attract hedging interest instance, gains made in the short run in
investment and undertake risk in Indias commodity derivatives market, the securities market are taxed at 15 per
mitigation measures. and make this risk management platform cent. However, this benefit is not
more efficient. Besides, large scale available to the gains made in
Take mutual funds, for instance. For a participation of institutions with deep commodity markets. Integration to be
growing economy like India, it is professional expertise would lead to successful has to provide a level playing
necessary to channelize public savings better price discovery, ultimately field by creating a fair and just
away from physical assets. The mutual increasing the robustness and public environment, so that the animal spirits
funds are already doing this by investing confidence in Indian traded prices. This generated by competition can drive the
in the equity and debt markets. By is an important step in making India a commodity markets to the next higher
playing the role of an intermediary price-maker in the global commodities level.
between financial markets and millions market.
of risk averse small savers who are
looking for safe investment instruments Opening investment The author is Chairman, Multi
with high returns, mutual funds have Commodity Exchange of India Ltd.,
opportunities to institutions
been able to channelize public savings and former Secretary to the Govt. Of
towards debt and equity markets. If the The commodity derivatives market India in the Ministry Of Petroleum
mutual funds are also allowed to trade in provides ample investment opportunities and Natural Gas and Department of
other regulated markets, such as the for all classes of investors. By opening the Industrial Policy & Promotion
exchange-traded commodity derivatives market to new investor classes, its
market, a larger bouquet of safe, benefits will be made available to a wider
(DIPP). Views are personal.
transparent and regulated market stakeholder group, including retail

Special Report
Managing Your
Portfolio In The
Smartest Manner
Peter Lynch- American investor, building up the portfolio. It will help you
mutual fund manager, and understand the type of investment you
Rashmi Wankhede philanthropist, once said: Know what are looking for and, accordingly, decide
believes while wealth you own, and know why you own it.
Portfolio management rests on the same
on the investment strategy for the same.
Knowing one's needs and goals, one can
accumulation theme that one must know which fruits allocate funds for different assets,
investors have in their baskets and their including cash, stocks, bonds,
depends on taking appetite for them. Portfolio management commodities, etc while creating the
the right investment is a long distance run and there are no
short cuts to it. James Morton rightly
portfolio. Asset allocation depends on
ones income, so the larger the income,
decisions at the right said: Most people who make lot of more asset classes and risks can be taken
money in the markets over the long term by investors.
moment, it also do not trade frequently. Investors should
equally depends on follow the same line of action while Investors should also check their
building up their portfolios and should tolerance to risk. If one remains calm in
managing portfolio focus on investing rather than trading. volatile markets and holds on to the
position, then he has high tolerance to
smartly. She finds out History suggests that one should start risk. If one gets anxious on such
early in working life to build up one's fluctuations, then he has low tolerance to
how an investor portfolio as there are less financial risk. If one cant bear such fluctuation
should effectively obligations at that time. It can fetch them and gets hyper on every dip, then such
huge returns over a period of time by investor should avoid investing in stocks
manage portfolios to getting advantage of the time value of and play safe by holding cash and debt
money. The first thing to build up a assets only.
make more of the portfolio is to determine your investment
investments made. profile. This exercise is useful to evaluate
your financial needs, time frame,
Before building up a portfolio, an
investor should set the financial goal for
tolerance to risk and objective behind creating the portfolio. There can be

different goals of individual investors, Allocation of asset- 5.Highly Aggressive- Investors who
such as retirement, education, home, etc. are willing to take substantial risk.
Depending on the goal, one should also BALANCEDPORTFOLIO Primary emphasis is on achieving
decide the time horizon for the portfolio Stocks Bonds Cash above-average portfolio appreciation
to achieve the financial goal. Also, one over time. These investors are willing to
needs to know one's expectations of 10%
assume a significant level of portfolio
return on investment that would be volatility and risk of principal loss. A
needed to achieve the objective. A typical portfolio will have exposure to
40%
reasonable time period is five years, various asset classes but will be heavily
which can make it possible for 50% weighted toward equities.
investment to bear sweet fruits.
Allocation of Assets-
After this step, we get five
HIGHLYAGGRESSIVEPORTFOLIO
types of investor profiles 3. Aggressive- Investors who are
willing to take a moderate level of risk. Stocks Bonds Cash
1. Conservative Primary emphasis is to strike a balance
2. Balanced between portfolio stability and portfolio
5%
15%
3. Aggressive appreciation. These investors are willing
4. Moderately Aggressive to assume a moderate level of volatility
5. Highly Aggressive and risk of principal loss. A typical
portfolio will largely include a balance of 80%
1. Conservative - Investors who are fixed income and equities.
predominately risk-averse belong to this
category. Primary focus is on portfolio Allocation of Assets- HOW TO GO ABOUT PORTION OF
stability and conservation of capital. AGGRESSIVEPORTFOLIO EQUITY PORTFOLIO?
Conservative investors are willing to Stocks Bonds Cash
achieve investment returns (adjusted for Once an investor knows his investor
inflation) that are low or, during some 5% profile, he can think of apportioning
years, negative, in exchange for low risk equities/stocks from different options
of principal loss and a high level of available in markets. Behind every stock
35%
liquidity. A typical portfolio will be is a company. Find out what it is doing,
heavily weighted toward cash and fixed 60%
advises Peter Lynch. We believe that
income investments. investors should invest in the industry
they know about. It will help them keep
Allocation of assets- track of the portfolio easily. For example,
CONSERVATIVEPORTFOLIO 4.Moderately Aggressive- Investors If one is fully aware about agro-industry
who are willing to take a fair amount of and the seasonal impact on agriculture
Stocks Bonds Cash
risk. Primary emphasis is on achieving production, its drivers and demand-
portfolio appreciation over time. These supply equation, then one can easily
25%
20%
investors are willing to assume a high level analyse fundamentals about a company
of portfolio volatility and risk of principal that caters to agriculture and its stock
loss. A typical portfolio will have exposure price movement. It will eventually help
to various asset classes but will be the investor to track such assets in
primarily weighted toward equities. portfolio and take informed decision
55% while managing one's assets. Investors
Allocation of Assets- can follow different sources like market
2. Balanced- Investors who are MODERATELYAGGRESSIVE related web portals, magazines,
somewhat risk-averse belong to this PORTFOLIO newspaper to get knowledge about
category. Primary focus is to achieve a Stocks Bonds Cash
markets and industry. Some investors
modest level of portfolio appreciation can also follow different technical tools
with minimal principal loss and volatility. 5% available for taking decision on the basis
These investors are willing to absorb 25%
of technical analysis.
some level of volatility and principal loss.
A typical portfolio will include mostly Recently Warren Buffet, legendary
cash and fixed income investments with 70%
investor said in his letter to shareholder
a modest allocation to equities. that investors should try to take

Special Report
advantage of the greed and fear cycle. The to manage risks associated with an

coming years can deliver market decline equities portfolio and get advantage of
that can affect all stocks in the portfolio. news runners.
In such panic situation, investors should
consider widespread fear as a friend and
go for bargain purchase. Secondly, DIVERSIFICATION Price is what
investors should consider personal fear as
enemy. This approach will help investors
Investors should also focus on
diversification of their portfolio. you pay. Value
to sit on a larger collection which will
eventually do well in the longer game.
Investors must select stocks across
broad spectrum of market is what you
categories. One should go for
BUILDING UP EQUITY PORTFOLIO
stocks of companies paying good
and regular dividends (high dividend
get
Building up equity portfolio is a
challenge that can fetch good returns if
yield) as well as stocks with long term
growth potential. If one is having high
Warren Buffet
stocks are picked up thoughtfully. risk appetite, then one can also include
Investors should have a mix of bouncers high growth stocks from small and
and star performers in portfolio. Ideally mid-caps. We should give 20 per cent
one should have 15-25 stocks in basket. weightage to small-caps, 25 per cent odd market conditions.
weightage to mid-caps, 30 per cent
In our definition, the 'star performers' are weightage should be given to fundamental
fundamentally sound companies that are strong companies with dividend yield of MONITORING OF PORTFOLIO
available at attractive valuations and have more than 5 and remaining gap can be After building up your portfolio you
the potential to give handsome returns. filled with bouncer stocks. should monitor it at least once a month,
On the other hand, bouncers are those depending on the financial objective of
stocks that perform beyond expectations, building up the portfolio. You should
led by positive macro-economic OPTIMUM COST check whether the asset allocation is in
parameters, news, favourable events or One should go for brokerage firm that line with your objective, and if is not,
policy changes. Such economic reports charges minimum brokerage and stop whether any reallocation of assets is
and other news can have short-lived paying extra commission and save your needed. One can follow Warren Buffet's
effect on some stocks. These companies hard-earned money. Investors should approach of adding same assets at
may not present stronger numbers as also avoid frequent buying and selling of bargain price and adding more assets.
compared to the star performers, but scrips in response to markets ups and This approach will help to maintain
they have the potential to perform well downs. One must have disciplined and a proper mix and match of assets and give
led by industry tailwinds. For example, patient approach while investing. This a desirable risk-reward ratio. Over the
the government emphasis on digitisation basic rule will help save brokerage cost time, rise and fall in financial markets
will present ample opportunities to and save cash losses when price of your could disturb your asset allocation but
companies like Sterlite Technologies, stock declines. monitoring it will help you to rebalance
TVS Electronics, etc. in future. The stocks your portfolio allocation.
of these companies had performed well
led by news on economic reforms. PROPER ASSET ALLOCATION TAX CONSIDERATION
Investors can have ~25% exposure to Investors should not allocate more than Investors with focus on tax gain over
bouncers with a six-month time frame 4% on any of the scrips. They should investment can have a portfolio
and the remaining 75% should be have investments upto 4% in one scrip to investment horizon of more than one
devoted to star performers with horizon gain advantage of diversification. It also year. Such investors can reduce exposure
of one year or more. This strategy helps gives their portfolio immunity against to bouncers and add companies with
higher dividend yield in portfolio.
The individual investor should Disciplined, regular and diversified

investment can turn one into a superstar
investor who sits on a gold mine. Our
act consistently as an investor and experience says long term investment
strategy always plays double hand and
not as a speculator. can give your portfolio the requisite push
to fulfil your dreams. With this we wish
- Ben Graham our investors happy investing. DS

Vivimed Labs Limited
Veernag Towers, Habsiguda, Hyderabad - 500007 Ph:+91 40 27176005
Manufacturers of active ingredients under specialty chemicals and API and FDF under
pharmaceutical segments Manufacturing locations at Jeedimetla, Kashipur, Haridwar,
Bollaram, Kolkota and Chennai in India and Spain and Mexico
VIVIMED LABS LIMITED

Healthcare
Active Pharmaceutical Finished Dosage Formulations Speciality Chemicals
Ingredients (API) (FDF)
19% of FY16 sales
19% of FY16 sales 54% of FY16 sales
Active Finished Dosage Jarcol Hair Dyes

Pharmaceutical Formulations Reversacol
Ingredients (API) (FDF) Photochromic
& Intermediates Regulated Market Dyes
to Semi-regulated Anti-Microbials
Pharmaceutical Market
Industry Imaging
Contract Chemicals
Finished Dosage Manufacturing
Formulations
Branded
(FDF)
Formulations
Photo Chromic
Dyes
Imaging Chemicals
1
UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER & 9 MONTHS ENDED 31'ST DEC'2016
Rs.in Lacs
Quarter Ended 9 Months Ended Previous Year
Sl. No. Particulars 31.12.2016 30.09.2016 31.12.2015 31.12.2016 31.12.2015 ended 31.03.2016
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
1 Income From Operations 36,311 29,929 33,188 1,03,099 1,00,639 1,35,644
2 Total Expenses 26,003 23,806 27,062 79,984 81,473 1,11,355
EBITDA 10,309 6,122 6,126 23,116 19,166 24,289
3 Depreciation 1,547 1,494 1,545 4,568 4,662 6,139
4 Finance Costs 1,734 1,494 1,922 4,749 5,706 8,157
5 Prot Before Tax 7,028 3,134 2,659 13,799 8,798 9,993
6 Tax Expenses 1,857 449 358 3,099 1,691 1,626
7 Net Prot after Tax 5,171 2,685 2,302 10,699 7,107 8,367
8 Paid up Equity Share Capital 1,620 1,620 1,620 1,620 1,620 1,620
9 Earnings per Share (before Extraordinary Items) (of Rs2/- each) (not annualised)
(a) Basic 6.38 3.31 2.84 13.21 8.77 10.33
(b) Diluted 6.19 3.22 2.76 12.81 8.51 10.02
The above nancials are extract of results published for the quarter ending 31st December, 2016 . Further details can be seen in BSE & NSE websites
as well as company website: vivimedlabs.com

Cover Story Methodology
Ranking
The Method and The Logic

Extensive research has led to the most coveted list of toppers. For the reflect on the financials of the company.
selection of Indias top 150 companies purpose of this study, we began with all
which have created wealth for their the listed companies of India. Since our THE EXCLUSIONS
promoters, shareholders and the society objective was to focus on companies
at large. We have applied a professional which have been super-achievers, a short We have deliberately left out certain
approach and method in this selection period study would not have been categories and companies from our study
process as explained below- justified. Therefore, we spread our period of Elite 100. These include-
of study over the past six years; we then
This years list marks Dalal Street narrowed down the list to include only - Banking and Non-Banking Finance
Investment Journals fifth year of ranking those companies which have been listed Companies: The reason for excluding
of India Inc. and presenting the DSIJ 150. for more than six years. banking and NBFCs from our study is
Ranking provides a universally accepted due to the difference in the nature of
benchmark of performance with an THE RATIONALE their business and the way they should
objective analysis. What is also important be evaluated. Moreover, we will come out
is that with time, experience and A long-term study of six years tends to with a special issue on banking in the
changing conditions, the way one ranks even out any aberration in the results of coming month wherein these companies
should also undergo modification. These any particular year and helps in will be comprehensively ranked.
years have made us a little wiser and we providing a fair idea of the long-term
have tweaked the methodology to make performance. A long-term study weeds THE PARAMETERS
it more robust, as will be explained in the out ups and downs which are a natural
following paragraphs. part of any business. Another reason why Broadly speaking we have sought to
a six-year period or long-term study analyse and rank companies based
The study has culminated in the selection makes more sense is that many on the following parameters:
of the top 150 corporates of India Inc. infrastructure companies such as power Growth
and is a result of a meticulously laid out and road construction, and even the Efficiency
process. What follows is a detailed strategies of the service sector and Safety
description of the various steps that have manufacturing companies, get executed
been followed in order to arrive at this over a longer period before they begin to
Wealth creation

Growth: The most important criterion big pain for many companies with the As table is self-explanatory for the
for determining a companys success is, servicing cost escalating over a period of weightage that we have assigned to arrive
naturally, the growth that it achieves over time. Therefore, we have used the at our final list and the rankings done
a period of time and also its capacity for debt-to-equity ratio to measure the safety thereafter. Accordingly, a higher weight
growth in the future. Growth for a of capital of the companys shareholders. has been assigned to the growth factor
company can be defined in many ways. It It actually reflects on how much of your in case of companies with a market
could include anything and everything money in terms of shareholder equity capitalisation of more than `10,000 crore,
that goes to define a corporation as a could come back to you in case of an the reason being that these companies
whole. The most important and critical eventuality after paying out the entire are far ahead on the safety curve. They
among these is the topline which is debt on the balance sheet. have been in the business for a greater
defined by the sales or revenues of the duration and have achieved critical mass
company. The next growth factor is the Wealth Creation: The ultimate by now. What is important in their case is
operating profit which defines the objective of any organisation is the growth factor which will propel them
operational performance of the company. maximising the shareholders return. into the next orbit. Safety and efficiency
Then comes the net profit which defines Obviously, then, this had to be one of the have been assigned an equal weightage
the eventual benefit to stakeholders criteria for our study. In order to for the same reasons as mentioned above.
either to be used this year in the form of evaluate companies on this front, we have On the other hand, growth and safety
dividend or can be invested to reap its looked at the movement in share prices have been weighted at an equal level in
benefit in the coming years. The capital between FY11 to H1 after adjusting for case of companies with a market cap of
employed by a company is an important splits and bonuses. The impact that this less than `10,000 crore but over `1,000
ingredient that helps it to grow. Of the has had on market capitalisation is crore. Shareholder returns carry the same
above, three reflect the profit and loss what has determined wealth creation weightage in both the categories.
(P&L) side and one captures the by these companies for their
balance-sheet character. In other words, shareholders. Based on all these factors, a final composite
the P&L pointers capture the financial ranking of companies in both the
health of the company at three different THE RANKING METHOD categories was arrived at. This gave us a list
levels, while the capital employed reflects After having laid out the data according of the top 50 companies in the first
the correct picture of growth in the to the various parameters as discussed category (market capitalisation in excess of
balance sheet. above, we then embarked on the final `10,000 crore), which is our Super 50
step of ranking these companies. club. The top 100 companies in the second
Efficiency: It is not only the growth Although all the parameters described category make up our Elite 100 group.
that matters but also how effectively and above play an important role for a
efficiently this is achieved. In fact, the company to excel, they differ by way of As mentioned at the outset of this
more efficiently an organisation uses its the importance of the quantum. We have exercise, it has been our perpetual
resources, the higher the value that it carefully measured this requirement and endeavour to research and provide the
creates for its stakeholders. Having said accordingly assigned weights to each of best of the best to our readers and patrons.
that, we have measured efficiency based the parameters. Even within that, We at DSIJ are committed to continue
on the following factors. companies in different stages of their improving upon our methodology and
Operating profit margins (OPM) evolution have been assigned weights research metrics to further strengthen the
Net profit margins (NPM) according to the requirement. This led us quality of the results. In the pages that
Return on capital employed (RoCE) to the creation of two broad categories. follow we bring to you the DSIJ list of
The OPM and the NPM together capture One, where we considered companies Super 50 and Elite 100 companies. We
the efficiency of a company at the with a market capitalisation in excess of hope this compilation helps you put a
operating and the net levels, respectively. `10,000 crore and second, where we finger on the truly valuable shining stars
The RoCE, on the other hand, indicates considered companies with a market of India Inc. Although these companies
how good a company is in utilising its capitalisation of less than `10,000 crore have performed superbly over the last six
funds. This is evaluated on relative basis but exceeding `1,000 crore. years and rightly deserve a place in
for the current year. Market cap DSIJ 150, these are not our
Market cap > recommendation. Nonetheless, these
Parameters between 10,000
Safety: Debt for a company is like a 10000 Crore companies can be looked at for
and 1,000 Crore
double-edged sword; if raised and Safety 0.2 0.4 investment after applying your own
utilised in an efficient manner it can Growth 0.5 0.4 judgement.
increase the shareholders return or else Efficiency 0.2 0.1 DS
can turn into a burden. Our recent Share price ( by Neerja Agarwal )
0.1 0.1
experience shows that debt has become a appreciation

Cover Story Super 50
Kansai Nerolac
RANK Ajanta Pharma RANK Paints
1 BSE CODE
FACE VALUE (`)
: 532331
: 2 2 BSE CODE
FACE VALUE (`)
: 500165
: 1
MARKET CAP(` Cr.) : 16059.15 MARKET CAP(` Cr.) : 17506.81
CMP (`) : 1744.45 CMP (`) : 348.30
Financial Snapshot Financial Snapshot

Shareholding Pattern Gross Sales (` Cr) Shareholding Pattern Gross Sales (` Cr)
Promoters : 73.77 1742.92 Promoters : 74.98 4650.89

Institutions : 12.43 PBIT (` Cr) Institutions : 14.72 PBIT (` Cr)
552.29 1069.54
Public Shareholding : 12.21 Public Shareholding : 8.67
Others : 1.59 Others : 1.63
TOTAL : 100 PAT (` Cr) TOTAL : 100 PAT (` Cr)

As on 31-Dec-16
401.41 As on 31-Dec-16
894.26
ROCE (%) ROCE (%)
5 Year CAGR (%) 5 Year CAGR (%)
50.70 53.54
Total Debt/Equity(x) Total Debt/Equity(x)
0.08 0.02
ROE (%) ROE (%)
43.40 45.86
Ajanta Pharma Limited is a specialty pharmaceutical company
engaged in the development, manufacture and commercialization Kansai Nerolac Paint Ltd is an India based industrial paint
of pharmaceutical products. Th e company focuses on manufacturing company. Th e company manufactures a
commercializing generic products and synergistic combination diversified range of products for every surface. Th e companys
products in the therapeutic areas of anti- malarial, cardiology, products range include decorative paints, automotive coatings,
dermatology, gastroenterology, musculoskeletal, ophthalmology general industrial coatings, high performance coatings and
and respiratory. Th e company has one segment of activity namely, powder coatings.
pharmaceuticals.
Share Price Performance ( Rebase to 100 ) Share Price Performance ( Rebase to 100 )
Data Souce : ACE Equity Marker Cap as on Jan 09, 2017 and CMP as on FEB 21, 2017

Alembic Torrent
RANK Pharmaceuticals RANK Pharmaceuticals
3 BSE CODE
FACE VALUE (`)
: 533573
: 2 4 BSE CODE
FACE VALUE (`)
: 500420
: 5
CMP (`) : 552.40 CMP (`) : 1261.70


939.88 2549.66

As on 31-Dec-16
719.59 As on 31-Dec-16
1722.41
ROCE (%) ROCE (%)
65.24 46.42
0.08 0.70
ROE (%) ROE (%)
59.07 55.18
Alembic Pharmaceuticals Ltd is an India based integrated Torrent Pharmaceuticals Limited is a pharmaceutical company
pharmaceutical company. Th e companys business is divided into based in India. Th e company has presence in cardiovascular (CV)
the following segments: active pharmaceutical ingredients, bulk and central nervous system (CNS), gastro-intestinal, diabetology,
pharma chemicals, formulations, herbal nutraceuticals, veterinary anti-infective and pain management segments. The Company
and contract/ collaborated research services. Th e company has operates only in one business segment viz. pharmaceuticals,
only one business segment, i.e., pharmaceutical business. comprising mainly manufacture of branded formulations

RANK Vakrangee RANK Eicher Motors

5 BSE CODE
FACE VALUE (`)
: 511431
: 1 6 BSE CODE
FACE VALUE (`)
: 505200
: 10
CMP (`) : 311.55 CMP (`) : 25040.85


663.62 2107.54

As on 31-Dec-16
394.75 As on 31-Dec-16
1451.94
ROCE (%) ROCE (%)
38.31 68.82
0.21 0.02
ROE (%) ROE (%)
31.38 48.56
Vakrangee Softwares Limited is an Indian system integrator and

service provider for end to end e-governance solutions.It also Eichers Motors Limited is an India based company which is
provides ITES solutions for industry. Th e company caters to the involved in automotive business. Th e company manufactures
following sectors- Government, telecommunication, BFSI, commercial vehicles. Th e range of products offered includes fully
utilities, transport & aviation, education, e-publishing, healthcare built up Trucks, Buses and Chassis. The company has only one
& lifesciences and retail & others.Th e company operates in only operating segment viz- automobile products.
one segment viz e-governance related activities.

RANK Britannia Industries RANK PI Industries
7 BSE CODE
FACE VALUE (`)
: 500825
: 2 8 BSE CODE
FACE VALUE (`)
: 523642
: 1
CMP (`) : 3245.70 CMP (`) : 866.50


1202.77 417.38

As on 31-Dec-16
805.93 As on 31-Dec-16
315.33
ROCE (%) ROCE (%)
73.03 35.75
0.08 0.13
ROE (%) ROE (%)
50.92 30.79
Britannia Industries is an Indian based company with business
PI Industries Ltd is an Indian company with business interest in
interests in bakery and diary products. Th eir products include
Agri inputs, Fine Chemicals (CRAMS - Contract Research and
Britannia Time Pass, Britannia Cookies, Tiger, Britannia cakes,
Manufacturing Services). Its agri inputs include insecticides,
Britannia Good day, Britannia acti mint , Britannia bourbon,
fungicides, herbicides, plant nutrients, seed treatment chemicals,
daily fresh dahi, Treat-Choco Decker, Britannia Top, Treat-
active ingredients, and seeds. Th e companys also offers contract
Chocoz, Nature Spice Cracker, Nutrichoice Health Starter Kit,
research and manufacturing services in the areas of fine
NutriChoice 5 Grain, NutriChoice SugarOut, NutriChoice
chemicals, agro chemicals, and pharma intermediates.
Digestive Biscuit and New Britannia Milk Bikis.

Tata Consultancy
RANK Services RANK Bharti Infratel
9 BSE CODE
FACE VALUE (`)
: 532540
: 1 10 BSE CODE
FACE VALUE (`)
: 534816
: 10
CMP (`) : 2408.15 CMP (`) : 309.20


31695.70 3840.50

As on 31-Dec-16
24374.94 As on 31-Dec-16
2382.00
ROCE (%) ROCE (%)
54.37 19.37
0.00 0.09
ROE (%) ROE (%)
43.89 7.26
Tata Consultancy Services Limited (TCS) is an Indian IT services,
business solutions and outsourcing company. Th e company offers Bharti Infratel Limited is a Public Company incorporated on 30
consulting led integrated portfolio of IT and IT related services. November 2006. It is classified as Indian Non-Government
The company serves the following industries-Banking and Company and is registered at Registrar of Companies, Delhi. Its
Financial Services, Energy Resources & utilities, Insurance, Life authorized share capital is Rs. 35,000,001,000.It is in involved in
sciences and Healthcare, Telecom, Retail and consumer products, Activities of providing Telecom Tower Infrastructure Sharing for
Manufacturing, Media and Information services, Travel telecommunication services.
hospitality& transportation.

RANK Shree Cement RANK Cummins India
11 BSE CODE
FACE VALUE (`)
: 500387
: 10 12 BSE CODE
FACE VALUE (`)
: 500480
: 2
CMP (`) : 15283.40 CMP (`) : 888.80


529.63 909.41

As on 31-Dec-16
454.90 As on 31-Dec-16
713.95
ROCE (%) ROCE (%)
8.00 28.30
0.14 0.00
ROE (%) ROE (%)
7.94 24.82
Cummins India Limited is a manufacturing company that

Shree Cement Limited is an India-based cement manufacturing manufactures diesel engines. Th e company caters to the Power
company. Th e company operates in two segments: cement and Generation, Industrial and Automotive Markets and also to the
power. Th e company sells cement under the brands of Shree growing market for gas and dual fuel engines. Th e company
Ultra, Bangur and Rockstrong. provides diesel and gas engines, products, packages, services and
solutions for up time of Cummins equipments.

RANK MRF RANK Tech Mahindra

13 BSE CODE
FACE VALUE (`)
: 500290
: 10 14 BSE CODE
FACE VALUE (`)
: 532755
: 5
CMP (`) : 50065.00 CMP (`) : 502.90


3814.64 4113.00

As on 31-Dec-16
2366.01 As on 31-Dec-16
3156.70
ROCE (%) ROCE (%)
48.41 28.96
0.36 0.08
ROE (%) ROE (%)
41.15 26.91
Tech Mahindra Ltd is an Indian Company with business interests

in the field of Information Technology(IT) services, in
MRF Ltd is an Indian company engaged in manufacturing and
partnership with British Telecommunication. Focused primarily
marketing of tyres for various vehicle. Th e companys products are
on telecommunication industry. Tech Mahindra is an integrated
Tyres, conveyor belts, pre treads, paints &coats and sports goods.
and business transformation consulting organization. It has
Th e company is dealing only in rubber segment.
expended its IT portfolio by acquiring Satyam Computer
Services.

RANK Natco Pharma RANK AIA Engineering
15 BSE CODE
FACE VALUE (`)
: 524816
: 2 16 BSE CODE
FACE VALUE (`)
: 532683
: 2
CMP (`) : 762.35 CMP (`) : 1505.05


229.53 606.92

As on 31-Dec-16
153.83 As on 31-Dec-16
424.13
ROCE (%) ROCE (%)
17.87 26.11
0.09 0.08
ROE (%) ROE (%)
15.83 32.05
Natco Pharma Limited is an Indian Pharmaceutical Enterprise. AIA engineering is an India based company. Th e company
Th e operations of the company are in four segments viz bulk specialized in the design, development, manufacture, installation
chemicals, formulations, job work and others. Th e products of the and servicing of high chromium wear, corrosion and abrasion
company are seggregated further into pharma and oncology( resistant castings used in the cement, mining and thermal power
haemotology and solid tumors). generation industries.

RANK Divis Laboratories RANK Biocon

17 BSE CODE
FACE VALUE (`)
: 532488
: 2 18 BSE CODE
FACE VALUE (`)
: 532523
: 5
CMP (`) : 748.00 CMP (`) : 1105.25


1381.37 1237.60

As on 31-Dec-16
1111.85 As on 31-Dec-16
970.50
ROCE (%) ROCE (%)
35.18 22.67
0.01 0.62
ROE (%) ROE (%)
28.00 27.83
Biocon Limited is a fully integrated global healthcare company

that delivers bio pharmaceutical solutions. Th e company offers a
Divis lab is Indian based pharma company which provides new
range of products from fermentation derived small molecules to
processes for the production of Active Pharma Ingredients (APIs)
recombinant proteins and antibodies. Th e company also offers
& Intermediates.
custom bio- manufacturing services to domestic and
international pharmaceutical companies.

Adani Ports & Special
RANK Maruti Suzuki India RANK Economic Zone
19 BSE CODE
FACE VALUE (`)
: 532500
: 5 20 BSE CODE
FACE VALUE (`)
: 532921
: 2
CMP (`) : 5989.00 CMP (`) : 297.65


6723.30 4255.90

As on 31-Dec-16
4630.90 As on 31-Dec-16
2829.94
ROCE (%) ROCE (%)
25.31 13.21
0.01 1.73
ROE (%) ROE (%)
18.03 22.95
Maruti Suzuki India Ltd is an Indian car passenger company. Th e
company has 15 brands and over 150 variants Maruti 800, people Adani Ports and Special Economic Zone Limited (APSEZ),is a
movers, Omni and Eeco, international brands Alto, Alto-K10, private port and special economic zone in India. Mundra Port
A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV provides cargo handling and other value-added port services. The
Grand Vitara, sedans SX4, Swift DZire and Kizashi. It has two company is primarily engaged in one business segment namely
manufacturing units located in Gurgaon and Manesar. The developing and operating and maintaining the port and port
company is also engaged in pre-owned car sales, fleet related infrastructure facilities including multi product SEZ.
management and car financing.

Sun Pharmaceutical
RANK Pidilite Industries RANK Industries
21 BSE CODE
FACE VALUE (`)
: 500331
: 1 22 BSE CODE
FACE VALUE (`)
: 524715
: 1
CMP (`) : 684.45 CMP (`) : 675.45


1091.76 7242.17

As on 31-Dec-16
756.38 As on 31-Dec-16
5830.38
ROCE (%) ROCE (%)
42.02 19.43
0.03 0.27
ROE (%) ROE (%)
27.33 20.47
Pidilite Industries Limited is a company dealing in consumer and

Sun Pharamceuticals Industries Limited is a speciality pharma
specialties chemicals in India. Th e companys business segment
company.Th e companys brands are mainly prescribed for chronic
include consumer and craftsmen and industry speciality. Th e
therapic areas like cardiology, psychiatry, neurology,
product of the company like favicol, favigum, favibond, cyclo carb
gastroenterology, diabetology,ophthalmology, orthopedics, etc.
clean, cyclo faster super penetrate, ranipol color run off, Dr. Fixit
The company has only one operating segment - pharmaceuticals.
and many more.

Zee Entertainment
RANK Havells India RANK Enterprises
23 BSE CODE
FACE VALUE (`)
: 517354
: 1 24 BSE CODE
FACE VALUE (`)
: 505537
: 1
CMP (`) : 425.90 CMP (`) : 520.80


1483.81 1594.00

As on 31-Dec-16
1208.91 As on 31-Dec-16
1028.90
ROCE (%) ROCE (%)
60.15 27.05
0.05 0.00
ROE (%) ROE (%)
28.50 30.74
Havells India Ltd. Is a India based electrical and power
distribution equipment manufacturing company. Th e companys Zee Entertainment Enterprises Limited is an integrated television,
products ranges from Industrial & Domestic Circuit Protection media and entertainment company. It a flagship company of
Switchgear, Cables & Wires, Motors, Fans, Power Capacitors, CFL ESSEL group. Th e company is involved in broadcasting and
Lamps, Luminaries for Domestic, Commercial & Industrial content development, production and its distribution through
applications, Modular Switches, the entire gamut of household, satellite, cable and internet. The Company has 23 channels that
commercial and industrial electrical needs. Th e company owns serve an array of content choices in India.
some global brands like Crabtree, Sylvania, Concord.

RANK Piramal Enterprises RANK Lupin

25 BSE CODE
FACE VALUE (`)
: 500302
: 2 26 BSE CODE
FACE VALUE (`)
: 500257
: 2
CMP (`) : 1878.55 CMP (`) : 1457.90


1832.95 3477.65

As on 31-Dec-16
790.99 As on 31-Dec-16
2279.45
ROCE (%) ROCE (%)
7.68 25.22
1.31 0.65
ROE (%) ROE (%)
8.98 28.09
Piramal Healthcare is a globally integrated healthcare company. Lupin Limited is an Indian Pharmaceutical company producing a
Th e companys portfolio of products spread across eleven therapy wide range of quality, affordable generic and branded
areas. The company has 2 divisions- consumer products and formulations and APIs Th e company focuses on Tuberculosis
vitamins & fine chemicals. It also has a business known as drugs, Cardiovascular(prils and statins), Diabetology, asthma,
Pharma Solutions that is into Contract Development and pediatrics, CNS, GI, anti-infective and NSAIDS therapy
Manufacturing . segments.

RANK Bajaj Finserv RANK HDFC Bank
27 BSE CODE
FACE VALUE (`)
: 532978
: 5 28 BSE CODE
FACE VALUE (`)
: 500180
: 2
CMP (`) : 3675.25 CMP (`) : 1377.15


6681.00 54862.23

As on 31-Dec-16
2774.56 As on 31-Dec-16
12817.33
ROCE (%) ROCE (%)
15.35 18.18
2.65 8.25
ROE (%) ROE (%)
6.21 18.26
HDFC Bank Ltd is a private banking company conducting its

Bajaj Finserv Ltd is a Indian company engaged in business of life
business in India. HDFC Bank offers a wide range of commercial
insurance, general insurance and consumer finance businesses.
and transactional banking services and treasury products to
Apart from financial services, BFS is also active in wind-energy
wholesale and retail customers. Th e bank has three key business
generation. Th e companys operating segment consist of general
segments namely Wholesale Banking Services, Retail Banking
insurance, Life Insurance, Investment & others, retail financing
Services and Treasury. The Bank at present has a network of 2000
and windmill.
branches spread in 996 cities across India.

RANK JSW Energy RANK Cadila Healthcare

29 BSE CODE
FACE VALUE (`)
: 533148
: 10 30 BSE CODE
FACE VALUE (`)
: 532321
: 1
CMP (`) : 60.85 CMP (`) : 447.80


3554.47 2172.30

As on 31-Dec-16
1446.19 As on 31-Dec-16
1552.60
ROCE (%) ROCE (%)
17.42 29.56
1.83 0.46
ROE (%) ROE (%)
12.24 37.09
JSW energy is an Indian based private power generation Cadila Healthcare limited is a global pharmaceutical company
company. Its a dynamic vertical of JSW group. The companys that discovers, develops, manufactures and markets a broad range
business segment include power generation, power trading, of healthcare products. Th e groups operations range from API to
power transmission, mining and equipment manufacturing. formulations, animal health products and cosmeceuticals.

Larsen & Toubro Cholamandalam
Infotech Invest. & Fin.Co.
RANK RANK
31 BSE CODE
FACE VALUE (`)
: 540005
: 1 32 BSE CODE
FACE VALUE (`)
: 511243
: 10
CMP (`) : 690.65 CMP (`) : 1016.10


1163.02 2927.40

As on 31-Dec-16
922.31 As on 31-Dec-16
574.65
ROCE (%) ROCE (%)
53.83 11.99
0.03 6.14
ROE (%) ROE (%)
50.04 17.96
Cholamandalam Investment & finance Company Ltd is an Indian

Larsen & Toubro Infotech Ltd is an Indian based company which financial services provider company. Its a flagship company of
carries on business as a global IT services and solutions provider Murugappa group. Th e company operates only in the finance
to the clients. Th e company has its registered offi ce in the State of services business segment. Th e company provide services in
Maharashtra. vehicle finance, corporate finance, home equity loan, investment
advisory services and securities.

Bajaj Holdings & Motherson Sumi
RANK Investment RANK Systems
33 BSE CODE
FACE VALUE (`)
: 500490
: 10 34 BSE CODE
FACE VALUE (`)
: 517334
: 1
CMP (`) : 2035.55 CMP (`) : 349.50


429.90 2610.40

As on 31-Dec-16
341.59 As on 31-Dec-16
1756.20
ROCE (%) ROCE (%)
3.00 27.46
0.00 1.50
ROE (%) ROE (%)
19.91 31.50
Bajaj Holdings & Investment Ltd (BHIL)is an Indian Non

Banking Finance Company(NBFC) belong to Bajaj Group. BHIL Motherson Sumi Systems Limited (MSSL) is the flagship
demerged from Bajaj auto limited and all the business and company of the Samvardhana Motherson Group. The Company
properties, assets, investment and liabilities of erstwhile Bajaj auto manufacturers automotive wiring harnesses and mirrors for
Ltd other than the manufacturing undertaking and the strategic passenger cars. It is also a supplier of plastic components and
business undertaking now remain with BHIL. The company modules to the automotive industry.
holds 30 % share in BAL and BFS.

RANK HCL Technologies RANK Marico
35 BSE CODE
FACE VALUE (`)
: 532281
: 2 36 BSE CODE
FACE VALUE (`)
: 531642
: 1
CMP (`) : 838.60 CMP (`) : 268.90


7042.95 1054.01

As on 31-Dec-16
5605.25 As on 31-Dec-16
736.62
ROCE (%) ROCE (%)
27.23 45.03
0.04 0.16
ROE (%) ROE (%)
23.50 28.47
HCL Technologies is a global IT service company. Its line of

Marico Ltd is a Indian company whose main business interest is
businesses include engineering and R&D services, enterprise
in Fast Moving Consumer Goods(FMCG) and branded services
transformation services, business process outsourcing, custom
in the area beauty and healthcare. Th eir brands include Parachute,
application services, enterprise application services and IT
Saffola, Hair&Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya
infrastructure management. Th e company delivers its services in
Skin Clinic, Aromatic, Fiancee, HairCode, Caivil, Hercules, Code
verticals like Financial Services, Manufacturing, Consumer
10 and Black Chic.
Services, Public Services and Healthcare.

Bharat Petroleum
RANK Corporation RANK CRISIL
37 BSE CODE
FACE VALUE (`)
: 500547
: 10 38 BSE CODE
FACE VALUE (`)
: 500092
: 1
CMP (`) : 679.35 CMP (`) : 2065.50


13725.98 405.70

As on 31-Dec-16
8463.98 As on 31-Dec-16
285.15
ROCE (%) ROCE (%)
26.21 47.61
1.04 0.00
ROE (%) ROE (%)
30.04 31.66
CRISIL Limited is global analytical company providing ratings,
research, and risk and policy advisory services. . Th e companys
Bharat petroleum corporation limited is Indian company with
core businesses include rating, global research and analytic s,
business interests in marketing , exploring and refining of crude
research, capital markets, infrastructure advisory and CRISIL risk
oil. They have four refineries. Their products include LPG, diesel,
solutions. Th e companys customers range from small enterprises
petrol, Bharat metal Cutting Gas, kerosene, aviation fuel,
to the largest corporations and financial institutions. Th e
bitumen, naphtha, Auto lubes, lubricants, grease and oil .
company also works with governments and policy-makers in
India and other emerging markets in the infrastructure domain.

Hindustan Petroleum
RANK Infosys RANK Corporation
39 BSE CODE
FACE VALUE (`)
: 500209
: 5 40 BSE CODE
FACE VALUE (`)
: 500104
: 10
CMP (`) : 999.70 CMP (`) : 543.45


18991.00 8701.40

As on 31-Dec-16
13681.00 As on 31-Dec-16
4846.91
ROCE (%) ROCE (%)
34.99 16.95
0.00 2.10
ROE (%) ROE (%)
30.01 22.61
Infosys Technologies Ltd is a global technology services company.
Infosys defines, designs and delivers technology-enabled business Hindustan Petroleum Corporation Limited(HPCL) is an Indian
solutions for Global 2000 companies. Their services include company. It is engaged in crude refining and marketing of
business and technology consulting, application services, systems finished petroleum products . Th eir products include refineries,
integration, product engineering, custom software development, ATF, bulk fuels & specialties, LPG-HP GAS, lubes- HP lubes,
maintenance, re-engineering, independent testing and validation retail, exploration & production, joint ventures, alternate energy.
services, IT infrastructure services and business process Th e company owns two coastal refineries
outsourcing.

Kotak Mahindra
RANK Bharat Electronics RANK Bank
41 BSE CODE
FACE VALUE (`)
: 500049
: 10 42 BSE CODE
FACE VALUE (`)
: 500247
: 5
CMP (`) : 1526.15 CMP (`) : 796.20


1867.62 23008.62

As on 31-Dec-16
1386.49 As on 31-Dec-16
3431.12
ROCE (%) ROCE (%)
21.30 13.01
0.00 5.39
ROE (%) ROE (%)
16.32 10.97
Bharat Electronics Limited (BEL) is an Indian company. Its
Kotak Mahindra Bank Ltd is a Indian commercial bank which
objective is to meet the manufacturing specialized electronic
offers personal finance solutions of every kind from savings
needs of all three Indian defense services ( Army, Navy and Air
accounts to credit cards, distribution of mutual funds to life
force).BEL offers products and services in a wide spectrum of
insurance products. The Bank offers transaction banking,
technology like Radars, Military Communications, Naval
operates lending verticals, manages IPOs and provides working
Systems, Electronic Warfare Systems, Telecommunications,
capital loans. The company is also in Wealth Management . Kotak
Sound and Vision Broadcasting, Opto-Electronics, Tank
Mahindra Bank has over 321 branches and 1335 ATMs
Electronics, Solar Photovoltaic Systems, Embedded Software.

RANK ITC RANK Sun TV Network
43 BSE CODE
FACE VALUE (`)
: 500875
: 1 44 BSE CODE
FACE VALUE (`)
: 532733
: 5
CMP (`) : 268.25 CMP (`) : 703.35


15516.18 1397.85

As on 31-Dec-16
10061.22 As on 31-Dec-16
920.16
ROCE (%) ROCE (%)
47.05 39.59
0.00 0.00
ROE (%) ROE (%)
30.98 25.17
ITC Ltd is an India-based private sector company. ITC has a

market presence in Cigarettes, Hotels, Paperboards & Specialty Sun TV Network Limited is an Indian television network that
Papers, Packaging, Agri-Business, Packaged Foods & provides Twenty TV channels and Forty Five FM Radio stations
Confectionery, Information Technology, Branded Apparel, in several Indian languages in infotainment covering movies,
Personal Care, Stationery, Safety Matches and other FMCG entertainment, music, documentary and news.
products.

RANK Dabur India RANK UPL

45 BSE CODE
FACE VALUE (`)
: 500096
: 1 46 BSE CODE
FACE VALUE (`)
: 512070
: 2
CMP (`) : 265.45 CMP (`) : 710.90


1605.26 2248.23

As on 31-Dec-16
1255.45 As on 31-Dec-16
1342.96
ROCE (%) ROCE (%)
34.60 22.29
0.20 0.62
ROE (%) ROE (%)
37.10 18.72
United Phosphorous Limited is a global generic crop protection,

Dabur India Limited (DIL) is an Ayurveda and natural health chemicals and seeds company. Th is company is engaged in the
care company. It is engaged in manufacturing and marketing of business of agrochemicals, industrial chemicals, chemical
fast moving consumer goods and Ayurveda products. Dabur intermediates and specialty chemicals. Th e Company also has a
operates in key consumer product categories like hair care, oral captive power plant. Th e Company offers a range of products that
care, health care, skin care, home care & foods. includes insecticides, fungicides, herbicides, fumigants and
rodenticides.

RANK Dalmia Bharat RANK Reliance Power
47 BSE CODE
FACE VALUE (`)
: 533309
: 2 48 BSE CODE
FACE VALUE (`)
: 532939
: 10
CMP (`) : 1895.35 CMP (`) : 43.95


1290.06 4142.06

As on 31-Dec-16
265.34 As on 31-Dec-16
1361.94
ROCE (%) ROCE (%)
10.56 7.60
2.24 1.64
ROE (%) ROE (%)
7.16 2.42
Reliance power limited is a part of the Reliance group which

Dalmia Bharat Enterprise Limited is an Indian company. The
develops, constructs and operates power projects domestically
company operate in four business segment: refactory,
and internationally. They have seven coal-fired projects, two
management services, cement and others. Th is company is
gas-fired projects and seven hydroelectric projects these are the
involved in manufacturing and selling of cement.
projects they have under development.

RANK Balkrishna Industries RANK Berger Paints India

49 BSE CODE
FACE VALUE (`)
: 502355
: 2 50 BSE CODE
FACE VALUE (`)
: 509480
: 1
CMP (`) : 1152.00 CMP (`) : 223.60


892.06 589.86

As on 31-Dec-16
575.95 As on 31-Dec-16
369.77
ROCE (%) ROCE (%)
19.11 31.72
0.69 0.25
ROE (%) ROE (%)
22.32 25.36
Balkrishna Industries Ltd is an Indian tyre manufacturing Berger Paints India Ltd is India based paint manufacture
company. Its a flagship company of Siyaram-Poddar Group. The company. Th e company manufactures and markets a range of
company operate only tyre business segment. BKT produces tyre decorative & industrial paint products under various product
for three different: agriculture and forestry tyre, industrial and brands. Th e products of the company include interior wall
OTR tyre and ATV and go kart tyre. coatings, exterior wall coatings and metal and wood paints.

Cover Story Elite 100
8K Miles Software
Nesco Services
BSE CODE : 505355 BSE CODE : 512161
RANK RANK
1 2
FACE VALUE (`) : 10 FACE VALUE (`) : 5
MARKET CAP(`/Cr.) : 2745.9 MARKET CAP(`/Cr.) : 2055.21
CMP (`) : 2257.25 CMP (`) : 602.8
Sales PBIT PAT ROCE Debt/ Sales PBIT PAT ROCE Debt/
(` Cr) (` Cr) (` Cr) (%) Equity (x) (` Cr) (` Cr) (` Cr) (%) Equity (x)
262.7 193.77 132.92 32.36 0 271.93 68.5 53.24 42.24 0.01
5 Year CAGR (%) Shareholding Pattern (%) 5 Year CAGR (%) Shareholding Pattern (%)
Promoters : 68.16 Promoters : 63.41
Institutions : 8.47 Institutions : 2.54
TOTAL : 100 TOTAL : 100

As on 31-Dec-16 As on 31-Dec-16
TV Today Network eClerx Services-

RANK RANK
3 4
CMP (`) : 266.15 CMP (`) : 1373.8
546.01 147.52 94.31 29.85 0 1314.32 477.52 363.25 52.92 0


Just Dial Dr. Lal Pathlabs

RANK RANK
5 6
CMP (`) : 459.75 CMP (`) : 997.45
690.83 197.99 141.85 29.44 0 791.32 201.21 133.23 47.43 0

Caplin Point Accelya Kale

Laboratories Solutions
RANK RANK
7 8
CMP (`) : 397.35 CMP (`) : 1553.05
238.73 60.39 45.77 55.41 0.02 340.98 128.46 83.02 112.58 0


Mindtree MPS
RANK RANK
9 10
CMP (`) : 475 CMP (`) : 674.7
4689.6 777.7 603.3 34.91 0.02 257.21 105.26 71.24 39.31 0

Tata Elxsi Sharda Cropchem

RANK RANK
11 12
CMP (`) : 1458.65 CMP (`) : 463.9
1075 236 154.81 70.84 0 1218.58 266.86 175.04 35.45 0
Public Shareholding : 37 Public Shareholding : 3.38


Persistent Systems Suven Life Sciences

RANK RANK
13 14
CMP (`) : 628.75 CMP (`) : 175.75
2312.33 395.72 297.36 25.93 0 500.28 97.66 66.74 14.55 0.14
Promoters : 36.21 Promoters : 60

Cigniti Technologies ICRA

RANK RANK
15 16
MARKET CAP(`/Cr.) : 1094.83 MARKET CAP(`/Cr.) : 4000
CMP (`) : 382.55 CMP (`) : 4054.05
594.84 90.07 49.68 24.09 0.32 341.15 118.55 76.43 25.91 0


Avanti Feeds Ashiana Housing
RANK RANK
17 18
CMP (`) : 594.55 CMP (`) : 183.1
2018.29 241.56 158.98 67.42 0.03 521.23 146.42 129.55 22.99 0.11

UFO Moviez India Nocil

RANK RANK
19 20
CMP (`) : 404.4 CMP (`) : 81.05
570.06 112.09 63.47 18.67 0.2 788.61 128.28 78.26 24.04 0.07


Sunteck Realty Geometric

RANK RANK
21 22
CMP (`) : 255.3 CMP (`) : 256.25
786.49 255.51 159.32 9.43 0.76 1233.5 194 130.6 38.82 0.12

BF Utilities Bliss GVS Pharma

RANK RANK
23 24
CMP (`) : 392.8 CMP (`) : 152.5
301.47 200.31 3.2 12.63 NMF* 549.5 166.39 100.15 31.99 0.32
NMF*
NMF* : Non meaningful


Poly Medicure FDC
RANK RANK
25 26
CMP (`) : 492.05 CMP (`) : 210.6
417.93 74.99 47.47 25.59 0.36 1028.47 221.39 156.62 22.25 0

Quick Heal
Zydus Wellness Technologies
RANK RANK
27 28
CMP (`) : 827.5 CMP (`) : 252.1
458.81 115.36 103.67 26.12 0 338.07 88.56 58.4 18.87 0
5 Year CAGR (%) Shareholding Pattern (%) TTM CAGR (%) Shareholding Pattern (%)


Shemaroo
TVS Srichakra Entertainment
RANK RANK
29 30
MARKET CAP(`/Cr.) : 2447 MARKET CAP(`/Cr.) : 1051.14
CMP (`) : 3104.25 CMP (`) : 408.95
2518.75 305.33 190.58 55.3 0.33 374.9 107.91 54.34 21.94 0.54

Eros International
NIIT Technologies Media
RANK RANK
31 32
CMP (`) : 425.75 CMP (`) : 197.4
2682.4 385.02 296.97 25.95 0.01 1582.68 338.96 224.52 16.29 0.24


Indoco Remedies Precision Camshafts
RANK RANK
33 34
CMP (`) : 266.6 CMP (`) : 154.5
1013.79 113.09 82.98 16.88 0.24 493.37 108.45 64.16 18.46 0.41

Kovai Medical Center

& Hospital Jindal Poly Films
RANK RANK
35 36
CMP (`) : 1105.35 CMP (`) : 326.9
465.31 79 40.62 25.01 0.91 7496.72 796.98 510.22 19.88 0.82


Tide Water Oil
Company (India) Garware-Wall Ropes
RANK RANK
37 38
CMP (`) : 6023.05 CMP (`) : 639.05
1219.76 146.17 90.41 27.59 0.01 829.2 95.86 61.9 25.57 0.09

Ramco Systems Excel Crop Care

RANK RANK
39 40
CMP (`) : 343 CMP (`) : 1790.95
447.7 51.76 38.79 8.83 0 980.58 86.33 60.05 20.91 0.05
NMF* NMF* Promoters : 55.11 Promoters : 64.96



Natco Pharma Marksans Pharma
RANK RANK
41 42
CMP (`) : 762.35 CMP (`) : 40.6
1179.43 229.52 153.82 17.87 0.08 893.33 117.01 82.74 23.16 0.19
TOTAL : 100 NMF* NMF*

TOTAL : 100
Jamna Auto
Balaji Amines Industries
RANK RANK
43 44
CMP (`) : 334.8 CMP (`) : 196.65
698.21 110.11 57.61 23.51 0.62 1363.45 119.71 71.5 46.17 0.07


Unichem Laboratories Meghmani Organics

RANK RANK
45 46
CMP (`) : 266.7 CMP (`) : 42.1
1350.19 140.56 108.4 14.95 0.04 1476.78 214.02 113.03 17.71 0.9

Fiem Industries Sagar Cements

RANK RANK
47 48
CMP (`) : 946.95 CMP (`) : 768.95
1093.01 95.15 57.33 26.07 0.54 862.42 94.44 46.1 13.25 0.79
Others : 4 Others : 27.1


KSB Pumps Alembic
RANK RANK
49 50
CMP (`) : 610 CMP (`) : 38.5
872.7 102.22 64.12 17.24 0 132.94 25.3 24.67 3.99 0
Public Shareholding : 10.51 Public Shareholding : 22

VIP Industries Kalyani Steels

RANK RANK
51 52
CMP (`) : 150.1 CMP (`) : 350.85
1234.25 98.34 66.46 28.49 0.04 1455.54 185.89 113.46 21.55 0.56


Nilkamal Rupa & Company

RANK RANK
53 54
CMP (`) : 1690.8 CMP (`) : 253.5
2140.01 189.92 115.23 25.91 0.17 1088.43 120.63 65.93 22.85 0.4
Institutions : 7.63 Institutions : 0

Polaris Consulting &

Camlin Fine Sciences Services
RANK RANK
55 56
CMP (`) : 97.8 CMP (`) : 183.55
504.23 74.46 35.82 22.86 1.02 2037.15 220.35 127.02 24.3 0


Bodal Chemicals TeamLease Services
RANK RANK
57 58
CMP (`) : 131.8 CMP (`) : 875.05
988.95 142.73 85.99 37.18 0.61 2504.92 38.36 24.8 15.99 0.06
Public Shareholding : 21 Public Shareholding : 6.53
NMF* NMF* TOTAL : 100 NMF* NMF*

TOTAL : 100
Hinduja Global
Solutions Dalmia Bharat
RANK RANK
59 60
CMP (`) : 612 CMP (`) : 1895.35
3328.21 196.02 101 10.5 0.71 7327.5 1290.06 265.34 10.55 2.23


Shilpi Cable Banco Products
Technologies (India)
BSE CODE : 533389
RANK RANK
BSE CODE : 500039
61
FACE VALUE (`) : 10
62
FACE VALUE (`) : 2
MARKET CAP(`/Cr.) : 2176.68
MARKET CAP(`/Cr.) : 1359.93
CMP (`) : 217.50 CMP (`) : 193.2
Financial Snapshot
Financial Snapshot
Sales PBIT PAT ROCE Debt/
Sales PBIT PAT ROCE Debt/
(` Cr) (` Cr) (` Cr) (%) Equity (x)
(` Cr) (` Cr) (` Cr) (%) Equity (x)
3895.53 301.89 165.64 25.38 0.91
1262.06 122.7 89.89 17.8 0.05
5 Year CAGR (%) Shareholding Pattern (%)

5 Year CAGR (%) Shareholding Pattern (%)
Promoters : 41.19
Promoters : 67.88
Institutions : 13.84
Institutions : 4.48
Public Shareholding : 6.21
Public Shareholding : 16.43
Others : 38.76
Others : 11.21
TOTAL : 100
As on 31-Dec-16
TOTAL : 100
As on 31-Dec-16
India Tourism
Development
Corporation PVR
RANK RANK
63 64
CMP (`) : 406.6 CMP (`) : 1274.3
459.08 28.03 17.56 9.2 0.01 1477.12 226.34 119.27 16.84 0.76
Institutions : 4 Institutions : 61.55


Piramal Glass KCP
RANK RANK
65 66
CMP (`) : 138.6 CMP (`) : 106.3
2164.07 334.61 179.75 19.61 2.29 1409.76 193.61 117.46 18.64 0.78

Zee Learn Finolex Cables

RANK RANK
67 68
CMP (`) : 44.85 CMP (`) : 444.9
151.33 35.06 15.08 5.64 1.55 2695.31 355.89 255.06 28.42 0.06
NMF* NMF*



Dalmia Bharat Sugar Sri Adhikari Brothers
& Industries Television Network
RANK RANK
69 70
CMP (`) : 171.1 CMP (`) : 291.55
1209.43 134.9 58.4 8.89 2.24 257.26 43.05 13.53 13.41 1.33
NMF* NMF*

Lloyd Electric &

Jindal Stainless Engineering
RANK RANK
71 72
CMP (`) : 52.15 CMP (`) : 327.85
7688.63 656.44 -384.79 6.07 -17.8 2767.2 170.62 41.94 10.45 1.24


Transport
Corporation Of India Praj Industries
RANK RANK
73 74
CMP (`) : 186.75 CMP (`) : 78.1
2521.41 147.11 82.12 16.07 0.65 1119.08 91 69.46 13.82 0.02

Gujarat Ambuja
Rolta India Exports
RANK RANK
75 76
CMP (`) : 62.95 CMP (`) : 111.5
3799.59 648.12 189.11 9.4 4.35 2776.44 132.68 103.65 11.14 0.36


NRB Bearings Navneet Education

RANK RANK
77 78
CMP (`) : 112.5 CMP (`) : 143.55
738.79 82.38 43.18 14.07 1.11 965.74 195.45 124.28 28.45 0.17

RSWM Asian Star Company

RANK RANK
79 80
CMP (`) : 409.6 CMP (`) : 690
2966.19 270.95 105.99 15.49 2.41 3300.83 115.35 72.55 6.86 1.6
NMF*



GATI Puravankara Projects
RANK RANK
81 82
CMP (`) : 121.8 CMP (`) : 49.25
1667.03 107.3 49.23 10.36 0.9 1550.7 359.14 67.38 8.29 1

Himadri Speciality Eveready Industries

Chemical (India)
RANK RANK
83 84
CMP (`) : 45.95 CMP (`) : 247.85
1322.37 82.34 -16.56 14.50 1.05 1393.93 98.45 50.6 11.5 0.3
NMF*
TOTAL : 100 NMF* NMF*
TOTAL : 100
NMF*
NMF* : Non meaningful NMF* : Non meaningful


Motherson Sumi
Agro Tech Foods Systems
RANK RANK
85 86
CMP (`) : 531.25 CMP (`) : 349.5
783.66 40.98 23.19 10.61 0.28 39110.2 2610.4 1756.2 27.45 1.49

Rane Holdings Dai-Ichi Karkaria

RANK RANK
87 88
CMP (`) : 862.45 CMP (`) : 490.4
2407.12 154.77 77.68 14.21 1 202.43 34.30 21.86 29.82 0.01


Sona Koyo Steering
Systems Bharat Electronics
RANK RANK
89 90
CMP (`) : 81.4 CMP (`) : 1526
1712.95 111.18 54.15 17.51 0.88 7924.51 1867.61 1386.48 21.30 0

Sundaram-Clayton Subros
RANK RANK
91 92
CMP (`) : 3382 CMP (`) : 200.05
13763.2 666.75 404.01 24.13 1.09 1487.43 68.11 23.94 9.32 1.16
Promoters : 74.99 Promoters : 40


Gujarat Narmada
Valley Fertilizers &
Chemicals Everest Industries
RANK RANK
93 94
CMP (`) : 274.10 CMP (`) : 187.5
4935.81 472.11 226.36 6.56 0.82 1301.38 69.58 34.44 11.38 0.73

Polyplex Corporation NIIT Ltd.

RANK RANK
95 96
CMP (`) : 361.3 CMP (`) : 73.6
3230.35 112.24 16.25 3.04 0.56 1006.85 31.19 3.75 3.31 0.24


Media Matrix
Worldwide Ltd Titagarh Wagons
RANK RANK
97 98
CMP (`) : 9.97 CMP (`) : 104.4
137.47 -20.69 -25.26 NMF 3.07 974.65 7.9 -28.08 0.97 0.34
Promoters : 60.71 NMF* Promoters : 45.92
Institutions : 0 Institutions : 24.66
NMF*
NMF*
NMF* : Non meaningful NMF* : Non meaningful
OCL India Sical Logistics

RANK RANK
99 100
CMP (`) : 899.85 CMP (`) : 241.55
3106.23 422.01 233.71 16.06 0.84 835.23 74.94 14.23 5.88 1.95


Interview
Kiran Mazumdar Shaw
CMD, Biocon
Technology
helps us in
building
diversified
portfolio, thus
creating wealth
How is Biocon using to develop a rich portfolio of novel biosimilars' portfolio have positioned
biologics and biosimilars, or follow-on Biocon among the first wave of companies
technology to stay versions of original biologics, with to be able to address the biosimilars
ahead of the curve? economical scalability and high opportunity in the developed markets.
productivity, coupled with high quality.
Since its inception, Biocon has been We have also set up state-of-the-art, Our biopharma strategy is balanced
leveraging technology to stay ahead of world class manufacturing facilities that between biosimilars on the one hand and
the curve. We entered the biopharma provide us with a global scale for novel programmes on the other. We have
space at a time when the prevailing producing these cutting-edge therapies. commercialised two path breaking
business ethos favoured low-risk We were, thus, the first to provide the monoclonal antibody drugs:
ventures based on generic drugs and benefits of high quality affordable Nimotuzumab for the treatment of head
pharma services. As a pioneering and alternatives to reference biologics for & neck cancer; and Itolizumab for
innovation-led biopharma enterprise, patients in India and other emerging psoriasis. Other exciting novel
Biocon was among the first entities in markets. Biocon is now the fourth largest programmes include our oral insulin
India to invest in developing insulin producer in the world. candidate, Insulin Tregopil, and fusion or
recombinant DNA and bio-processing bi-specific antibodies for treating various
technologies that could deliver By prudently leveraging technology, we aggressive cancers.
innovative and affordable biologics. have built among the largest and most
Biologics such as insulins and diversified portfolios of biosimilars,
monoclonal antibodies are a class of spanning monoclonal antibodies, generic
How has adoption of new
highly effective transformational insulin and insulin analogs,as well as technologies helped the
life-saving drugs, targeted at chronic other recombinant proteins. The portfolio
diseases like diabetes and cancer. Today, addresses many critical chronic diseases
pharmaceuticals industry
7 out of the 10 top selling drugs globally such as diabetes, cancer and autoimmune in the country to grow?
are biologics. At Biocon, we have built disorders. The clinical and regulatory
technological capabilities and expertise developments with respect to our Continue on pg no. 102 >>>

Interview
Ashishkumar Chauhan
MD & CEO, BSE
Technology
helps us to create
wealth
As technology is source, our data warehouse is on open technology expenses. Technology people
source and many of our critical systems are also a technology cost, not only cost
something which BSE is are now on open source, which has of hardware or software or network but
proud of, how much do reduced our total cost of ownership. also of the people who can actually
Today, large organisations like Google, effectively run it well. Our technology is
you spend on Facebook and Twitter are working not very generic, it is a very specific kind
technology as a primarily on open source technology and of software programming that happens
thats what motivated us to explore usage within it and scale and all of which are
percentage of revenue? on open source in our trading system. amongst the best in the world. Thats why
We spend close to 12-15 per cent of our we also need the best people in the world
total revenues on technology. Basically, to operate and modify these softwares
after employees' cost, technology cost is
Do you think in the next and all. Humans will remain important
the highest. So, if you put both the costs few years, companies for pretty long time in running of an
together, it would be close to 25-30 per action. Of course, large part of our orders
cent of our total revenues that go into our
will spend more on tech today are from the robots or from the
technology-related activities. So, if you than human resources-- computerised systems which are not
look from our total cost perspective, even run by humans. That is true with
because we have around 50 per cent
will tech have a final say our systems also. They run the system
margins, almost 50-60 per cent of our when it comes to doing and only when there is a problem you
total cost are basically technology- need people to solve it but still the
oriented. But that is also low on scale to
business? expertise that you require is of a very
what we operate because of the fact that Humans will continue to remain high calibre.
recently or during last three-four years important because ultimately everywhere
we have gone for open source in a big humans finally run the technology. So Continue on pg no. 102 >>>
way. So our trading system is on open humans running the technology are also

Interview
>>> Continue from pg no. 100
Over the past couple of decades, the affordable generic formulations we have Do you see spending on
adoption of disruptively innovative enabled easy access of drugs to patients
process engineering has helped the across the world, and have also helped technology equating to a
Indian pharma industry drastically bring the healthcare systems in these considerable percentage
down the prices of vaccines and countries to bring down their healthcare
life-saving drugs used to treat diseases spends. of revenue going up
such as HIV, TB and diabetes, globally. substantially, in the times
One in five generic drugs sold in the The adoption of latest technological
world today are of Indian origin and 'one advances, is enabling Indian medical to come?
in three' children are immunised with a device makers to target significant growth Globally, pharmaceutical R&D is
'Made in India vaccine. Pharmaceuticals prospects in this area. The Indian pharma witnessing a transition from small
is the second largest sector in India after industry is also eyeing the opportunity molecule chemical compounds to large
Information Technology in terms of its arising from technological advances in molecule biologics, along with the
recognised global stature and impact on cutting-edge areas, like stem cell therapy, implementation of a sophisticated
global healthcare. The industry has also 3D bio printing, immuno-oncology, etc. informatics and Big Data infrastructure.
created a global scale manufacturing Some companies are also leveraging the The cost of new drug development
sector, which has enabled the potential of genomics and Big Data continues to rise, with some estimates
development of specialised skills that analytics, while others are focusing on the saying that it takes over US$1 billion and
have provided India a competitive growth potential in the area of bio- upto 12 years to take a new chemical
advantage globally. markers and companion diagnostics, entity (NCE) from the lab to the market.
which is the future of new medicine that Going forward, R&D spending as a
The availability of high end scientific will personalise therapy and optimise the percentage of revenue is expected to
talent and expertise in Chemical benefits of biotech drugs. increase globally. However, there is
synthesis has enabled the Indian pharma To support these programmes, likely to be a difference in the rates of
industry to become a global provider of companies are increasing their R&D growth, with R&D spending in
generic pharmaceuticals, thus, earning spends, and innovation led companies Asian countries likely to grow faster
the reputation of the country being the like Biocon invest nearly 12-15% of their than that of North American and
Pharmacy of the World. By providing revenues in R&D. European. DS

In the coming future, can different areas. There are numerous second range.
brokers and everyone tries to be one up
we see Artificial on the other, and in doing so they tend to Our network systems are being
Intelligence playing innovate further and at the same time upgraded, our memories for the data
learn from other countries, other brokers storage systems are getting upgraded and
major role in the and so on and so forth. we are also trying to use radical
functioning of financial intelligence for new products. There are
many changes which are happening on a
markets? What are the new continuous basis to keep pace with the
In the current scheme of things, more technologies that market.
and more financial services industry is
turning towards Artificial Intelligence to
BSE is currently
do the jobs humans have done over the working on? How technology is
years. Especially this change is seen more helping BSE to create
towards the customer-facing side rather BSE is continuously trying to upgrade,
than from the exchange side. Exchanges update all its technology because our
wealth?
do make use of AI as it helps them in focus is always very high on high tech It is all about technology. Because of tech
monitoring and functioning of areas. So we will continue to invest in advancements, we are doing extremely
exchanges and at the same time make newer hardware and software and even well. Regular monitoring of tech-related
markets more efficient. Whereas, on the currently our response time is just six issues, giving clients legitimate
broker side, there has been lot of work micro seconds which is fastest in the advantages due to advancing
done on technological front be it use of world. But we are aware that other technologies, making deals faster,
AI, algorithms and robot-trading. So, people will be even faster after five years resolving accounts faster--all these are
effectively, its the brokers who innovate, and so we have also started trying to helping us to create wealth at the end of
much often expanding their horizon to modify our systems to get into nano the day. DS

Interview
Ravinder Pal Singh
Head of IT and Innovation, Air Vistara
Thoughtfulness,
innovations
beautifully align
with Vistaras tech
DNA
Can you tell us how ahead of the curve. industry?

technology is helping A few months back, I predicted a trend
in that successful airlines will
Vistara in achieving As the ways in which differentiate themselves from
cost-efficiencies and in business is conducted competitors by investing heavily in
Artificial Intelligence, and in particular,
improving operations? are going through a in bots, in Mobility Landscape and in
At Vistara, technology is viewed as one of period of evolution New Distribution capability (NDC). The
the key drivers for generating revenue airline distribution space is gradually
and optimising costs.
globally, how do you see making headway towards a more
the role of technology
Vistara is Indias first airline that is born Continue to pg no. 105 >>>
on Cloud (IT). We invest in commodity
evolve in the airline
platforms with equal zeal as in open
source platforms, depending on the
specific requirements. Vistaras core
values include thoughtfulness and
innovation that beautifully align with our
Blockchain technology will
tech DNA. Vistara is developing robust
technology systems to support enhance
our operational excellence and support
have an indirect impact on the
engineering, commercial and digital
marketing functions while synergising it ecosystem of airline industry
with the inward-facing functions such as
HR, Finance and Compliance. In
nutshell, use of Technology help us stay
commerce
Interview
Prabal Basu
Chairman & Managing Director, Balmer Lawrie & Co.
Innovation
breeds business
needs technological
innovations to be
sustained on a long
term basis.
As the ways to do that business needs technological profound impact across industries.
business is evolving innovations/developments to be Innovation leads the way to success in
sustained on a long term basis. this digital age. Innovation in business
across the globe: how do means doing something different,
see the role of smarter or better that will create a
How tech innovations positive impact in terms of value, quality
technology? can change companies or productivity by using emerging or
Technology in business is a growing proved technologies of the world.
necessity. As the years go by, the business
like yours which are into
world is leaning more and more towards diverse areas of The technology which has already
it, making it almost impossible to proved itself in last two decades is of
separate the two from each other. The
business operations? course the information technology (IT).
role of technology in business caused a Technology and Digital innovations have
tremendous growth in trade and
commerce. Business concepts and
models were revolutionized as a result of Business concepts and models
the introduction of technology. This is
because technology gave a new and
were revolutionized as a result of the
better dimension to do business in a introduction of technology. This is
more effective way. It provided a faster,
more convenient, and more efficient way because technology gave a new and
of performing business transactions.
better dimension to do business in a
Innovation breeds business, and since
technology paves the way for it, it is felt
more effective way.

growth aspirations. We are also looking solutions continue to increase the
It has dramatically changed the lives of into areas like digital marketing of our productivity, efficiency and effectiveness
the individuals and organisations. products and services to drive growth of business operations and
Currently online shopping, digital agenda of the Company. communication, business will continue
marketing, social networking, digital to rely and invest in its development and
communication and cloud computing etc implementation for success.
are the best examples of change which
Do you see companies
came through the wave of information like yours increasing How dependent is
technology. Accurate business
planning, effective marketing & sales,
their spending on Balmer Lawrie on the
systematic management, real time technology in coming use of technology in its
monitoring, instant customer support
and long term business growth cannot be
future? business operations?
achieved at the optimum level Absolutely! We have been and will
without IT. continue to invest more and more in Rather than being dependent we see this
R&D and technology to drive more as an opportunity for us to leverage
In a highly diversified conglomerate like competitive advantage for us in the Technology for growth. Whether
Balmer Lawrie, we see tremendous market place. It is impossible to attain pursuing new business models,
opportunities for technological long term business success without reengineering operating models, forging
innovations both in respect of IT and leveraging the benefits of technology, new alliances, connecting with
R&D / other technical areas. Our plan is especially in this digital age. The customers, or even managing talent/
to invest in these areas in the next couple companies have to bear a reasonable cost capability challenges, technology is an
of years to make this company attain its to achieve this success. As technology essential part of our strategy for growth. DS
>>> Continue from pg no. 103 innovations in Vistara? technology in the industry to give our
dynamic and nimble model where airlines We have incubated an Innovation team customers a seamless flying experience.
are in control, travel agents empowered, which works closely with the Tata Group We have technological solutions by such
and Global Distributions System provided Technology Innovation Office. The idea as Amadeus, TCS, SITA, SABRE and
with an opportunity to build new products behind this move is to tap into the MERLOT for various aspects of our
and services. I can also stick my neck out creativity and collective genius of our operations. Our GDS: Travelport,
and say that Blockchain technology, which employees and mobilise them to generate Amadeus, Abacus are also the best in the
relates to Bitcoin transactions, will have an innovative ideas for strengthening and industry and we have been the front
indirect impact on the ecosystem of airline streamlining processes. In Vistara we runners in this space to give a highly
industry commerce. Cloud and mobility operate with the understanding that modern edge to our airline.
are legacy, and modern, lean companies technologically innovative solutions do
have already adopted it. Blockchain not necessarily have to be tied to
technology can take the hassle out of airline expenditure, and that the company How does usage of
identity management and could culture can be sculpted in a way that
revolutionise identity management in helps technology help us! We are also
technology impact the
combination with Aadhar technology. In exploring the usage of Artificial end-user, i.e, Vistaras
my view blockchain has the ability to turn Intelligence, and some cool concepts in
airline miles into something much more the area of content redistribution and
customers?
pervasive and valuable outside the defined customer mapping. Despite being a start-up airline, we have a
boundaries of airlines and their limited good understanding of how technology
partners with whom passengers get to can be best leveraged to enhance
spend their miles. Imagine if your miles
What level of customer experience. In todays day and
were accrued in real-time, and there was technology is being used age, at every step in a customers journey
community-driven market place for you to with an airline, from the point at which
use them instead of the limited spend
by Vistara for its daily they search for tickets, till the point
options made available by individual operations and how is it wherein they land at their destination
airlines technology plays a crucial role. At Vistara,
helping the company? we have ensured that at each of these
We have laid a strong foundation of touchpoints, the technology at play is
What are the new or sophisticated and modern technological intuitively thoughtful, and aligns with the
upcoming technological tools, with a vision for long-term customers needs. This directly translates
sustainability. We have deployed the best into a smooth end-user experience. DS

Interview
Dinanath Dubhashi
MD, L&T Financial Holdings
Machines can do
work better, error-
free and more
efficiently than
people
L&T Finance Holdings thrust over digital and analytics. operations that is data entry, cheques
checking, call centres will all be done by
will start giving thrust to robots. You have to worry about job
Do you see spending on
technology investments generation, but the sector will do well.
tech and related entries
for digitisation of
increasing in next three Do you see layoffs due
processes and analytics.
to five years? By how to technology in future?
Can you take me As far as possible there will not be any
much percentage? layoffs. Rather people will be redeployed
through the companys
It is difficult to say now. We are investing over business and collections. Rather
plans on this front? `50 crore in the technology from FY18 than sitting idle, they can go to the field
There is major thrust for technology. Any itself. Technology itself is going to change and get business for the company that
process which is mechanical internally entire things in future. It will make easier machines cant do.
can be done by machines and I think it to customer approaches and we can take
should be done by machines only because faster decision to reduce turnaround
machines can only do it better than
As the ways to do
time. So, people will get loans faster, it
humans without any errors. It also saves business is evolving
will save the cost passed on to the profits
cost as machines require low cost and and get cheaper loans.
have better efficiency than people. That
across the globe, how do
does not mean we require less people, as
Can you comment on see the role of
they can be redeployed to other works
such as business, collections, thinking, Lakshmi robot in banking technology?
strategies, planning. But everyday job like Any repetitive job will have a
data entry, call centres, underwriting can
sector coming out? replacement and until we create jobs in
be done by machines. So, that is our Going forward couple of years, most other fields, we will have no worry. DS

Interview
Adi Godrej
Chairman, Godrej Group
Technology
enables efficiency
and increases
productivity
As the ways to do improve its business operations through doing business and
the continued improvement in its use of
business is evolving technology across its businesses. providing services to
across the globe, how do Do you see expenditure customers?
you see the role of on technology as a We certainly expect technological
technology? percentage of revenue innovations to help in ease of business,
providing services to customers and
I see the role of technology increasing going up in the coming leading to improved customer
considerably across businesses in the satisfaction.
future as it enables efficiency and
future for Godrej Group?
increased productivity. We see an absolute increase in
expenditure on technology but not
Is the Indian industry
How is Godrej Group necessarily as a percentage of revenue as ready to face the
we expect rapid growth in revenue too
focusing on adoption of challenges which come
new technology to carry Do you see tech with adopting new
out its business innovations making technologies?
I feel industries in India are adapting fast
operations? things easier for your to adopt new technologies to improve
The Godrej group is committed to company in terms of business performance. DS

Interview
Sandeep Bakhshi
Managing Director & CEO, ICICI Prudential Life Insurance
Imperative for
the industry to
stay invested in
technology
How do you see the The dematerialisation of life insurance with an application that is device
adoption of technology policies makes it easy for customers to agnostic. The sales process, right from
manage multiple policies via a single need analysis, recommending
in insurance sector account. It also makes for safe and appropriate products as per the
helping the industry to damage free policy storage. customers life stage requirements,
collecting documents, etc. are all carried
grow? What are the ways in out via our in-house-developed app,
While technology has always played a iNEO+.
significant role in industrys back-end which ICICI Pru is
processes, over the last few years, the life For customers it is a rich experience,
insurance industry has taken measures to
leveraging technology enabling them to make an informed
adopt technology at the customer- facing to grow? Has use of decision. Moreover, form-filling, e-KYC,
end. Technological developments have real-time decision on the policy and
given a boost to distribution and
technology helped the online payment facilities, make the
facilitated on-boarding of customers. company in ease of process of purchasing life insurance,
For a country like ours with its virtually paperless. What took days to get
population and geographical spread,
doing business and done earlier, is now done in a matter of
technology helps as the means to bridge providing customer minutes.
the geographical divide efficiently.
services? This has enhanced our distributor
Life insurance is also about customer For over three years now, we have been efficiencies on one hand and has also
service. The availability of the digital encouraging the use of the digital provided an efficient mechanism of
platform for managing policies offers platform for purchase and sale of scaling up distribution for the Company
convenience to customers. policies. Our distributors are equipped without relying on physical

infrastructure. We have seen a healthy Do you see expenditure We believe that it would be imperative
adoption and affinity by our sales system. on technology as a for the industry to stay invested in
92.3% of new business was initiated technology. It needs to provide
through digital platform for FY2016. percentage of revenue mechanisms to simplify and innovate, for
New business premium (Retail weighted going up in the coming products that are easily understood can
received premium) per employee has be easily purchased.
improved from `2.8 million per future? How will Digitisation of the economy would fasten
employee in FY2014 to `4.6 million in digitisation of economy the process of more customers
FY2016. interacting electronically for various
help insurance products and services. A simpler,
Each distributor is now also a service companies like yours? technology-aided platform would ensure
point, as he/she can help customers that insurance companies continue to
service their policies via the digital Technology is the key for keeping pace stay relevant with the new age customer.
platform. Enhanced convenience has with the changing trends in business and
resulted in higher acceptance at the the changing habits of customers. The Whats more the ultimate moment of
customers end as well. More than 50% of customers today are different from truth claims settlement, is also made
our renewal premiums were collected customers 10 years ago and the habits into a hassle free process thanks to the
electronically in FY2016. will keep changing with time. availability of online claim intimation. DS

Interview
Subrat Mohanty
Senior Executive Vice President & Head-Strategy, Ops, Bs & T & Health, HDFC Life.
Investments
in front-end to
help increase the
market size
How do you see the targeted marketing and so on. productivity. With digital we also intend
adoption of technology to integrate with non-traditional partners
and create new distribution avenues.
in insurance sector What are the ways in
helping the industry to which HDFC Life How your company is
grow? Insurance is leveraging using technology to
Technology is helping insurance industry technology to grow and market its financial
grow broadly on two fronts. One is reach,
where it is allowing products to be
compete with its rivals? services?
available to everyone through online Our vision is to be the leader in effective
presence. Second is new customer use of technology to meet the needs of These days information is abundant and
segments, that were untapped till the customers, employees and partners. We customers dont necessarily need to rely
recent past. In a country as large as follow a two speed IT execution on information dissemination by the
India, reaching the customers becomes strategy, where for programs such as company alone. It becomes important for
critical. Better reach is possible due to online and mobility, we enable rapid us to keep engaging with customers
internet and its widespread usage. development cycles. While our front-end online or offline and directly or
Technology is also changing some of is being transformed with initiatives such indirectly. Conversations with customers
the core functions in insurance that were as mobility, our backend is being today can be personalised and real-time.
untouched till now. We have moved from bolstered with capabilities such as robotic Traditional marketing medium is
an era of front-end technology adoption to process automation and artificial complementing the new media. We are
technology adoption across the value intelligence. This increases efficiency tracking our public messages faster to
chain. Savings from decrease in the multifold and reduces cost of operations. create effective campaigns. To showcase
processing and maintenance costs can now Mobility has seen more than 90% our achievement, we are ranked among
be invested at the front-end to help adaption which has decreased sales the top 10 in entire BFSI segment in most
increase the market through new products, related costs and is helping improve sales of the social media sites. DS

Interview
Sarv Saravanan
Senior Vice President and General Manager, Dell EMC
Significant
investments
in technology
upgradation is
the future
How has been the Do you see client of respondents are now expanding their
technology eco system spending in technology software development capabilities in order
to advance their digital business
evolving in the country rising in coming times? transformation.
with respect to adoption Yes, definitely, customers today have higher
expectations and demand service and
of technology? products that deliver the best results. This is
What are Dell EMCs
not possible without significant investment plans for India in the
There is a strong push on tech adoption in technology.
in the country, driven by both the private
coming future?
and public sectors. Government I would like to quote a survey that Dell 2017 ushers in a new phase for all of us at
initiatives like Smart Cities, Digital India Technologies undertook in association Dell Technologies. We begin a new year
have set the base for widespread tech with Vanson Bourne. 4,000 business as a combined company with
adoption across sectors. Policy leaders across 16 countries and 12 unparalleled prospects of collaboration,
frameworks are also being revised to industries were polled, to assess their innovation and immense value creation.
support and nurture innovations eg readiness for digital transformation. This The technology powerhouse that we are
Draft Software Policy 2016. At the same Digital Transformation Index throws light today has only one direction to go and
time, the biggest push for tech adoption on some of the biggest technology trends that is to grow. The R&D and Service
is coming from end customers who that organizations are undergoing today. It Delivery Centers in India will continue
expect service on demand. The eco was found that, 73% of the 4000 business to provide enormous value to Dell
system is falling into place with leaders surveyed are in agreement that a Technologies on behalf of our
government policy change and push, centralized technology strategy needs to be stakeholders, allowing us to leverage the
corporate interest and out of the box a priority for their business and 66% are amazing talent and unique IT ecosystem
innovation by Startups. Thanks to planning to invest in IT infrastructure and in India, extend support to local sales
Startups like NowFloats, SMEs also have digital skills leadership. So it comes as no efforts, and contribute to Dell
digital platform to grow their businesses. surprise that almost three in four i.e. 72% Technologies innovation. DS

Interview
N. H. Bhansali
CEO- Finance , Strategy & Business Development, Emami
Technology is
fuelling better
collaboration and
productivity of
people
Can you specifically tell productivity of people within and across achieve this, we will keep on staying
us how technology is functions and higher responsiveness to invested handsomely in this direction.
market needs.
helping your company
How will manufacturing
to cut down fixed cost to How much percentage of of FMCG products
increase margins? your topline goes to
Adoption of IT in companys value
benefit from adopting
chain has enabled management by
company's technological new technology going
exception, sharpened focus on innovations? forward?
improved stock availability, enhanced
order fulfilment and reduced cost of Emami is committed to creating an IT will enable manufacturing to be
managing complexity. Technology is IT-capable business environment adding perfectly in sync with the market
fuelling better collaboration and value to the companys performance. To demand and drive flexible
manufacturing with smaller batch sizes.
Technology is fuelling better How is Emami using
collaboration and productivity of technology to market its
product?
people within and across functions Emami is quite active in digital
and higher responsiveness to marketing, social media and web
presence. Some of the product launches
market needs. have been initiated with digital
marketing and social media. DS

Interview
D D Mishra
Research Director, Gartner
Technology-
driven creative
destruction of
organisations are
essential to their
success
The ways to do business and they have intertwined so much Do you see spends on
are evolving across the that it is difficult now to differentiate technology and related
the two.
globe, so how do see the entries increasing in next
role of technology? How tech innovations three to five years? By
Today, the way I see it is that every can change IT industry? how much percentage?
company is becoming a technology Technology and innovation led growth is Yes, of course. Technology spend will
company. Technology is no longer an becoming the key. Just take the example of continue to increase. In fact, the
important enabler but part of business the lock industry. Technology-driven surprising results came in our 2017 CIO
itself. Digital business is reshaping creative destruction of organisations are Survey. Compared to other regions, much
industries and redefining the role of IT. essential to their success. We need to higher percentage of Asia/Pacific
Every business will be a digital business, anticipate the headwinds generated by representatives indicated that their
and every leader needs to be a digital technological changes and drive changes organisation participates in a digital
leader. A significant shift is happening in within. If we fail to synchronise internal ecosystem. Even though absolute
the control of business over technology and external changes, possibility of spending levels differ regionally (North
and we will see more shift towards extension becomes stronger and we have America and Latin America at 16% and
business-driven technology procurement scores of examples. By 2020, organisations, 17% respectively, compared with APAC at
decisions. Gradually, the technology folks their value chain and their ecosystem must 22%), there is a global consensus among
are also seen playing bigger business roles become fully digitalised in a way that CIOs that they expect a 10% increase in
as the role of a digital officer is becoming extends well beyond mere automation of digital spending by 2018. Not only do
significant and more powerful. More and existing processes. With the rise of the APAC CIOs expect the largest growth in
more, we see that IT is becoming a broker. internet of everything, information will the average budget, but also non-APAC
Hence, the demarcation between business shape physical reality. This will unleash
and technology has already diminished new capabilities at an accelerated speed. Continue to pg no. 115 >>>

Interview
Sangram Kadam
AVP and Head, KPIT Technologies
Automation &
digital to contribute
heavily in our
revenues
How has been the organisations to transform from being management) continue to remain core,
low adopters of technologies to digital- enterprises are exploring new
technology ecosystem first enterprises. technologies such as cloud, big data, IoT
evolving in the country What has also emerged, as a result, is that (Internet of Things), virtual and
adoption of information technology and augmented reality to radically change the
with respect to adoption digital transformation no longer remain way customers engage.
of technology? a CIO-driven mandate. Technology has
progressed to meet larger, as well as The next two decades will be that of
I see a big shift in how both government strategic enterprise goals traversing exponential growth. Investments in
and corporates in India have moved finance, sales, human resources and technology to support digitisation will
forward to adopt technology. In the marketing functions. While accelerate to give Indian firms the
recent years, two forcesthe internet strengthening backend processes using opportunity to compete faster globally
and mobilityhave been central to this, ERP (enterprise resource management) and come out with more digital-based
and in some cases even leapfrogged and CRM (customer relationship business models.
To fully leverage the benefits of
Cloud, big data, IoT, virtual technology, businesses will need a

partner that is nimble and agile, and at
the same time brings the technological
and augmented reality to expertise and experience to drive
outcomes.
radically change the way
What role is KPIT
customers engage Technologies playing in the

Indian markets to help its legacy to newer technology platforms performance.
client when it comes to based on digital solutions. Automotive, which contributes
significantly to our revenues, is another
technology adoption? In the manufacturing space, we provide area where we are working with
In India, we have built good traction for IoT solutions for shop floor management customers on cutting-edge technologies
our IT and engineering services across to help customers enhance their in the domains of connected and
industries, led by our unique strength in productivity and deliver customer value. autonomous vehicles, remote monitoring
integrating IT and OT or operational Life sciences is an area where we have and diagnostics and ADAS (advanced
technology. When IT (Software-as-a- started partnerships. With growth of driver assistance systems)
Service and mobility) converges with OT social media and prospective subjects/ Our other area of business is products
(Smart Things, Predictive Analytics), it patients sharing their concerns related to and platforms for IT solutions. Over the
results in Intelligent Solutions Smart medical field in social platforms, life last few years, we have developed
Manufacturing, Smart Grids, etc. to give science companies are spending money products such as smart electric bus and
customers enhanced service and a new to monitor this data and reach out to ITS (intelligent transport systems),
revenue model where we predict outcomes people proactively, thus creating a trust which are in line with Government of
based on varying utilisation levels of relationship with patients. Indias smart cities, Digital India and
solutions within the enterprise. We are Make in India initiatives. Amongst the
working with various enterprises that are In the energy sector, we have a wind farm other products, we see good growth
at the cusp of adopting technologies to monitoring and action platform called potential in automotive diagnostics,
redefine their business outcomes as well as IntelliWind that visualises, analyses, AUTOSAR (Automotive Open System
those companies which are moving from predicts and diagnoses wind turbine Architecture) and infotainment. DS
>>> Continue from pg no. 113 and in Indian organisations have internal existing clients expand the use of smart
CIOs expect IT budget growth at a rate IoT (e.g.in its internal operations) machines, and more clients push into
that is half of their expected revenue experience. More than 15% have external more complex, transformational smart
growth. In comparison, on average, IoT (e.g. touching customers or suppliers) machine programmes.
APAC CIOs are growing their IT budget in both India and globally, where globally
at a rate roughly two-thirds of their this percentage of external IoT experience Another important area which is emerging
expected revenue growth rate. If we look is much higher compared to India and is Digital Twins. A digital twin is a dynamic
at service provider revenues, share of exceeds 25%. Hence IoT and related software model of a physical thing or
digital business-linked revenue is technologies is something which end- system that relies on sensor data to
gradually increasing. users and providers should keep an eye on. understand the state of the thing or system,
respond to changes, improve operations
Another technology which is becoming and add value. Digital twins include a
What will be new very important is smart machines. Smart combination of metadata, condition or
innovations to change machines will continue to grow and we state, event data, analytics. They will be
see that in the making. Gartner analysts widely used for repairing and servicing,
the way of working for have interviewed more than 40 service predict equipment failure, planning
various industries? providers, and 100% reported making manufacturing process, operate factories
some type of investments in smart- and perform enhanced product
We see significant work happening in IoT machine-enabled services. More than 10 development. Industries with high-value
and it is becoming mainstream now. have made investments of more than $50 assets (for example, transportation and
During the second half of 2016, we saw million. Consulting and service manufacturing) and industries with
significant client interests generated in Integration opportunities in smart mission-critical remits (for example,
execution and planning, which indicates machines is nearly $500 million globally aerospace and defence) instrument and
that it is no longer in the conceptual stage. today; most companies are still in the model complex things (for example, cars,
There may be some corrections to earlier experimental phase and implementing aircraft, spacecraft, machines and pumps).
hype but then we see 20 billion connected small initial projects, and very few are However, the degree of integration between
sensors and endpoints by 2020. IoT undertaking complex programmes. the digital model and the operation of the
architecture has entered into peak of However, this opportunity will grow at a physical thing varies greatly. These
inflated expectations in our Hype Cycle for five-year compounded annual growth industries can use digital twins to evolve
Enterprise Architecture for 2016. In our rate (CAGR) of more than 100% to reach from a traditional preventive maintenance
recent IoT backbone survey, we saw more nearly $29 billion in 2021 as more schedule to predictive, condition-based
than half of the customers both globally companies adopt smart machines, asset maintenance. DS

Interview
Glory Nelson
Senior Vice President - IT, SpiceJet
Technology is
used to handle
technology
disruptions
Can you specifically tell us feature about this application is that the contribution towards globalization of the
how technology is helping customer does not require carrying the world economy, the sector is highly
itinerary printouts nor has to Key-in the dynamic and characterised with cut-throat
SpiceJet in cutting down its PNR number to initiate Check in. competition. Aviation being a highly
cost and improve Customers can also avail a touchless customer centric industry, besides assuring
beacon based check-in to receive their enhanced customer satisfaction, reiterating
efficiency? What are the boarding pass on the smartphone. the value proposition of the services that
new technological one offers becomes critical to create the
In another use-case, we have desired brand ifferentiation. Thus it
initiatives undertaken by implemented self-service check in and becomes imperative for the industry to
SpiceJet in recent times bag tag printing from SITA CUSS kiosks keep itself adept to new innovations and
across Mumbai airport. The initiative will technologies. Summarising the Role of
which has impacted not only improve customer convenience Technology should bring in simplicity in
business operations? but will also ensure ease of operation by our complex business structure.
knocking off the long queues and
In a first-of-its-kind initiative by any decongesting the check-in counters.
airline in the country, we launched Smart
What are the future
Check-in facility using BLE (Bluetooth
Low Energy) and NFC (Near Field
As the ways to do business technologies which
Communication) technologies at the is evolving across the globe: SpiceJet is looking at in
Hyderabad Airport in close coordination
how do you see the role of order to improve upon
with GMR Hyderabad International
Airport Ltd. (GHIAL). This feature is technology in airline its rivals?
available for all SpiceJet customers who Spicejet is looking at IoT, AR, BOTS to
have booked their tickets through the
industry? improve customer experience and to
SpiceJet Mobile App. The most interesting While the airline industry has a huge reduce cost. DS

Interview
Madhusudhan KM
Chief Technology Officer, Mindtree
IT spend will
increase over
next 4-5 years
How has the technology technologies. NASSCOM is also industry verticals will look at
supporting this movement in a big way. transforming themselves using digital
ecosystem been One such example is the creation of an technologies. Therefore, there are several
evolving in the country IoT Centre of Excellence, launched at indications that IT spend will increase in
NASSCOMs startup warehouse in India over the next 4-5 years.
with respect to adoption Bangalore.
of technology? How in the true sense
The mainstream digital technologies are
Do you see Indian can India become a
Mobile, Cloud, Social, BigData & businesses increasing digital economy?
Analytics. All the leading IT service
players are well positioned and invested
their IT spending in the India is extremely well positioned to
in this space. The new technologies that times to come? become a digital economy with India
will power Digital transformation for stack in place, which is a combination of
enterprises are IoT, Cognitive Gartner recently predicted that IT Aadhaar, UPI, eKYC and Digilocker.
Computing, VR/AR, Blockchain & spending in India will reach USD 72.4 With the central theme being financial
Autonomic Computing. There is a huge billion in 2017. Another NASSCOM inclusion, and the intent to reach the
market opening up in these spaces not report indicates that the Government of grassroot level, India is positioned
just in US/Europe but also in India. India is committed to spend 1B USD on extremely well to become a digital
NASSCOM predicts that IoT market will Smart Cities. There were seven Indian economy. Post demonetisation, Paytms
touch USD 15 billion in India by 2020. firms that were featured in the Fortune traffic increased by 435%, app downloads
There are a number of interesting 500 list in 2016. This will definitely grew 200%, and there was 250% rise in
startups solving various enterprise increase by 2020. This means, all these overall transactions and transaction
problems using these emerging firms and other emerging firms across value. DS

Interview
Sanjay Sharma
Head - Technology, Innovation & Customer Fulfilment, RBL Bank
Banking
thriving with tech
innovations
As the ways to do initiatives, giving touch points to investing into artificial intelligence. We
business are evolving customers. Today, the banks are selling are not in a position to evaluate RoI for
technology related products. In the these kind of robotic investments in the
across the globe: what digital world, banks create products banking sector. RBL Bank is not
according to you is the using technology that has evolved. planning to launch robots in future.
Banking sector is trying to be more user
role of technology? friendly by launching robots with the
As time has evolved, the technology has
City Union Bank has help of artificial intelligence but success
become the peak enabler for the system. launched Lakshmi will be a prolonged affair.
Technology is evolving from the past 20
years. Earlier technology was the only
Robot, in Chennai There are various areas where banks are
support structure and was used for back branch. How it would focusing on vi check bond, machine and
office work. After that industry started big data. RBL Bank is focusing on
making use of evolved technology as
impact banking space various areas and technology based
some sort of enabler for improving and customers? products. We are the first bank to launch
efficiency. Today, it is the value generator. open banking and API banking which is
Most of the Fortune 500 companies The banking sector is thriving with the like open banking for the customers.
across the globe have not benefited from technology innovation and more recently There is interaction with the services of
physical work and have lost their the fintech world too. Banks are the ones other banks that we have interconnected
position; and only technology related who are exploring new areas and new with using the technology. Partnership
companies have been able to maintain products using the new emerging led, RBL Bank is focusing on innovation.
their position. Ola, Uber, Flipkart and technology. The bank like us, RBL Bank There are some technologies that will
other ecommerce companies are classic is using technology that emphasises on take time to mature and will evolve in
examples. In Banking industry, block chain, remittance products, and future.
technology has transitioned from its back one that is helpful in improving the
office status to customer centric supply chain. There are banks that are Continue to pg no. 120 >>>

Interview
Chandrahas Panigrahi
CMO and Business Director, Acer India
Fusion of
technologies is
blurring lines
between the
physical, digital
and biological
spheres
As the ways to do watches which facilitate more than half How is adoption of
of our work. Manual labour has been
business is evolving almost reduced to zero with the help of technology changing
across the globe, how do technology and very soon robots will dynamics of business in
replace the bare minimum work that was
you see the role of left for humans to do. this competitive
technology? environment?
Already, artificial intelligence (AI) is all
We are currently standing at the brim of around us, from self-driving cars and Remember the traditional office full of
technological revolution, which is going drones to virtual assistants and software clutter? Offices no longer look that way
to alter the way we live, work and relate that translate or invest. Impressive by the grace of technology. Heaps of files
to one another. Almost every day in our progress has been made in AI in recent have been replaced by a single device
lives, we come across some new years, driven by exponential increases in which can automatically store tonnes of
technology which affects our lives. Over computing power and by the availability information. Businesses no longer have
the years, mankind has witnessed of vast amounts of data, from software to depend on pure manual labour to get
industrial revolution which has changed used to discover new drugs to algorithms the job done. In this century, what we are
the course of how businesses functioned. used to predict our cultural interests. witnessing at the moment is automation
Now a fourth industrial revolution is Businesses have roped on to these or robotic process automation of jobs. It
building on the third, the digital evolving techniques which are going to first began from automation of tasks,
revolution that has been occurring since benefit them in the long run. We at Acer then the focus shifted to automation of
the middle of the last century. It is are constantly on the run for new data centre operations and, finally, to
characterised by a fusion of technologies innovation, making sure that our automating an entire process.
that is blurring the lines between the customers do not lose out on the latest
physical, digital and biological spheres. and most happening technology that is Mostly, technology is beneficial and
Few years back, computers used to be a being offered. businesses should try to counter the
big thing and today we have smart Continue on pg no. 120 >>>

Interview
Do you see spending on CAGR in last five years.

technology and related How do you think We are the
entities increasing in
next three to five years?
technology is helping
the bank to grow at a
first bank to
If yes, by what tremendous pace? launch open
percentage? RBL Bank has a network of more than
200 branches and 400 ATMs. We have banking and
The technology is helping every industry other channels such as mobile banking
including the financial industry also,
preparing them for the time to come. We
and internet banking. To become a
significant player from the technology
API banking
are spending a lot of money for creating
new products with the help of
perspective, one should have a strong
distribution network. Partnership led,
which is like
technology and innovation. As we go
forward, the spending percentage for
RBL Bank has a large partnership
network, which will help us to write open banking
technology will keep growing in future.
Though it will not increase in absolute
down the technology platforms and
extend world class services. RBL Bank is for the
terms. making optimum use of the evolved
technology, carving its own unparalleled
niche as the country navigates through
customers
RBL Bank is growing by unchartered territories.
more than 45 per cent
customers with the best of technological
negatives in order to find the beneficial Over the years, Acer has traversed innovations which would guarantee
impact in its adoption. Constant numerous, diverse horizons. Take sports, brand loyalty and, at the same time, not
improvement and having a well- for instance. The company has disappoint their expectations. DS
equipped tech team can change the established several successful and
future of a business. Neither technology path-breaking technology partnerships
nor the disruption that comes with it is with some of the biggest sporting events
an exogenous force over which humans and teams. The credit goes to Acer for Technology
have no control. All of us are responsible introducing the worlds first PC-based
for guiding its evolution, in the decisions
we make on a daily basis as citizens,
management system for a major
international sporting event, i.e. 13th
is beneficial
consumers, employees and investors. Asian Games in 1998. Acer has always
been a technology vendor that has been
and businesses
What is the focus area of ahead of the curve and has moved
beyond just being a computing-only should try to
Acer when it comes to
providing technologies
brand. Its brand philosophy of Breaking
barriers between people and technology counter the
and its strategy of progressive design is
to Indian entrepreneurs/ constantly bringing to life leading edge
engineering and design powered by R&D
negatives in
corporates?
Acer was one of the first few companies
that resonates with changing consumer
behaviours. For instance, Acer is
order to find
to realise the importance of transforming
itself into a Technology First business.
facilitating gamers with leading edge
technology that is proven and reliable, the beneficial
The basic premise of the company is to
create meaningful innovations beyond
mere creation of new technologies and
considerably improving their experience,
with their Predator series of laptops.
Recently, the worlds thinnest laptop,
impact in its
solutions that enable enterprises to do
more, do better and do faster in a simple
Swift 7 was released and along with it the
worlds thinnest convertible, Spin 3. We
adoption
but powerful manner. at Acer constantly strive to provide our

Interview
Dinesh Garg
Executive Vice President, Sales & Marketing, TTK Prestige
Savvy
companies with
customer-centric
innovations will
keep moving
forward
As the ways to do business How is TTK Prestige brands commitment to innovation and
is evolving across the focusing on adoption of ensures that the Indian homemaker will
benefit either from an aesthetic,
globe, how do you see the new technology to carry time saving and utility or health
role of technology? out its business operations? perspective.
The role of technology is an integral part Safety and health of our customers and
of any business. Consumers are incredibly durability of all our products is a core
What are the new
tech-savvy and are big on products and value at TTK Prestige. The brand heavily technologies TTK is
services that add value to their lives. invests in technology to come out with
Companies that fail to adapt to innovative and exciting products that can
planning?
technology and innovate consistently will add value to the lives of the consumers. The company is continuously looking out
be left behind. The savvy ones, along with Understanding the needs of the tech- for innovation in products, marketing,
continuous customer-centric innovations savvy and evolved Indian consumer is manufacturing and business process
will keep moving forward and reap paramount for a brand to stay relevant through future-ready technology. We
rewards. Companies have now got to these days. Despite being a company have factories across India in strategic
realise the importance of technology not steeped in history with a 61-year-old locations with state-of-the-art
only from a services and products legacy, TTK Prestige has understood the manufacturing capabilities and latest
perspective, but also from a customer needs of the modern consumer and has machinery meeting world standards. All
engagement point of view. Also, the evolved into a brand by placing the factories are in advanced automated
company needs to be superlative on emphasis on innovation. Products like stage and have won various international
business intelligence to ensure accurate the microwave pressure cooker, vacuum awards like TPM, Idea, just to name a
business processes, on-time data analysis, cleaner-cum-floor polisher, air fryer, few. New products would be in the space
real-time competition mappings to have Hobtop, Indias first convertible gas stove, of making the life of todays homemaker
an edge in todays highly competitive and the most recent Stunner 4 zone built- easier. Integration of apps with future
business environments. in induction cooktop demonstrate the kitchen appliances is on the cards. DS

Interview
Aditya Dhillon
Head of Operation, Talwalkars Better Value Fitness
There is going
to be significant
uptick in the
amount of tech
in the coming
years
As the ways to do How much technology Do you see more

business is evolving does a company like potential for the
across the globe, how do Talwalkars use for its usage of technology
you see the role of daily operations at the in the fitness
technology in fitness? gymnasium centres? industry?
Technology is impacting lives Talwalkars has been investing heavily in The ceiling on how much tech can
favourably across every industry, and this aspect of our business. We have impact fitness is unimaginable.
with increased focus on data, fitness made advances with a new updated Currently, advances in technology are
has experienced similar trends. From user-friendly website to allow a better happening so fast, it becomes difficult to
aggregator and experience sites like user experience. We have partnered with digest, understand and customise
Fitternity or Growfitter increasing every major e-wallet to ease transaction offerings to suit a brand or product. We
member service and easing the ability and capacity. We have developed feel there is going to be a significant
journey of fitness centre discovery member-based apps to help and monitor uptick in the amount of tech, not to
and experience, to a dependence on member workouts. We use beacons and mention how it is used, in the coming
online wallets and electronic payment push notifications to gauge member years. We, as market leaders, believe this
patterns, to wearable technology usage, tailor member communications gives us a front row seat to maximising
that is recording activity levels, sleep and have also invested in Growfitter, our member engagement, customising their
patterns and possibly medical online gym portal that aggregates and workout experiences and, finally, offer
information, we are seeing allows discovery of fitness centres, them not only better fitness, but also a
technology across all aspects of studios and alternate fitness models better, richer, deeper appreciation for a
our business. through their website and app. well-lived life. DS

Interview
Sunil Mahale
MD & Vice President, Nutanix Technologies India
Digital India
certainly boosted
cloud computing
industry
As the ways to do manage and monitor virtual offices across

business is evolving the world, IT is all-encompassing.
What will be new
across the globe, how do innovations to change
Do you see spends on
you see the role of the way of working for
technology and related
technology? various industries?
For any business to succeed, several factors
entries increasing in the
come into play, including accurate analysis, next three to five years? Every year futurists, analysts, and
right technology and vision. Research in consultants across the world do a deep
the last two decades shows organisations
By how much dive on the year gone by and then identify
that invest in technology to be innovative percentage? the top trends that will make the biggest
have proven their staying power, impact in the coming year. Fintech
consistently demonstrating their growth Technology is now an integral part in revolution, augmented reality, the cyber
with increased market share, financial running businesses, be it small, medium, battlefront, millennial power, online
figures and overall competitiveness. large as well as the government marketplaces have seen an upswing. 2016
departments. Today, even the smaller saw Fintech market revenues double and
Information technology enables organisations are realizing the need for the explosion of augmented reality with
organisations to access and analyse better operational efficiency with faster global Pokmon GO mania. Next year, we
specific data, provide tools that can solve speed, better total cost of ownership expect augmented reality to play a more
complex problems in a timely manner (TOC) and more flexibility to grow prominent role in B2B applications. On
and plan a scalable business without whenever the timing is right. We can the cyber battlefront, governments and
having to invest handsomely upfront. In expect an increase in technology spends, corporations would face increasing cyber
the modern digital age, when cloud however, one must remember that today security and cyber policy challenges.
computing plays a large part in enabling customers are better informed and they Lastly, Digital India has certainly given a
businesses to build a global presence, need value for their money. boost to the cloud computing industry. DS

Interview
Navneet Saraf
Director, Technocraft Industries (I)
New
technologies
are evolving
in construction
industry
What are the new material automation. We are reducing We have geographical segmental revenue of
projects your company cost and increasing yield because of these 40 per cent from the US, 25 per cent from
new products. Europe and 10 per cent from Australia. The
is getting in the stream company exports its goods to 10 different
of technology? Will you throw some continents and 40 different countries.
Technology is a very generic word. We light on the company's How is the industry
have four lines of businesses, term closure,
scaffolding system, engineering services
backward integration? heading into the future,
and textiles. In each of these businesses, In scaffolding and form work business,
we are doing initiatives that are very the basic raw material is steel tubes
considering the evolving
technological. The scaffolding and form which we make cartels that is our new technologies?
works businesses are the main divisions backward integration. We also do hot tip
where we have recently come up with galvanising. We also have forging unit. In the construction industry, various new
products for Indian markets. We have We have all types of backward technologies are evolving. We are coming
launched our own brand Mac in integration products right from steel to up with more automation. At the same
December. We have been developing and finished fabricated products for time, the industry is becoming labour
setting products in developed markets scaffolding framework. In our textile intensive and availability of skilled
such as US and Europe. We have business, we mainly make cotton yarn manpower is becoming very difficult.
synchronised and introduced them in the and have forward integrated to The industry is in need of technology
Indian market. They make construction garmenting. The garmenting business is which will help construct faster, leaner
faster, slap-cycle in buildings and increase having backward integration to yarn. and better quality with greater amount of
safety in the construction site and reduce safety. So, that is the direction where
costs. We are coming up with various industry is heading. The companys
automation products, including factory
Give your geographic products are aligned to these upcoming
automation, process automation and segmental business? technologies. DS

Interview
Mallavarapu Apparao
CMD, Centum Electronics
Invest more
in technology
to secure bigger
benefits
As the ways to do reduce costs. anything else, the big market

business is evolving opportunities in India that the world is
looking at, is a clear reason why Indian
across the globe: how do Is India ready to face the companies invest more in technologies
you see the role of challenges that comes and be ready to reap the benefits.
technology in along with adopting new
technologies? How has the way of
manufacturing of
doing business changed
electronics equipment? Yes. However, the challenges to
Manufacturing technology is not what it technology adoption that Indian
for Centum Electronics
used to be a decade ago. The advancement Industries generally face are high initial by adopting new
in technologies with increased automation investment, inadequate infrastructure,
and software, have reduced human no compelling business reason to
technologies?
intervention and facilitated in increased implement technology and lack of a At Centum, the mantra has always been
speed, precision, efficiency and flexibility skilled workforce. The stakeholders at the three Ts, Teamwork, Technology and
for manufacturing. The application of multiple levels, which is helping the Trust. Centums vision is to create value by
advanced technologies in manufacturing Indian Industries to be ready to face the contributing to the success of its
such as, micro-nanotechnology, MEMS challenge, are addressing these. The customers, by providing best in class
Sensors and cloud computing, are changing congenial investment opportunities electronics design and manufacturing
the face of manufacturing. Though there is provided in the form of increased FDI, solutions in high technology area.
a time lag in the application of latest improving efforts (though not at the Towards this, Centum continuously
manufacturing technology for Defense and desired speed) in infrastructure invests in technology and has established
Aerospace sectors for obvious reasons, the development by the government and its a world-class design and manufacturing
general trend has been to use the latest incentive schemes are helping Industries facility in the Aerospace SEZ in
technology to bring in more efficiency and address the challenges. More than Bangalore. DS

Interview
Nischal Puri
Strategic Consultant Brands, Lux Industries
Technology
won't lead to
retrenchment as
it has evolved
over the years
What are the new affordable. Besides the cost implication India varying from 10 Cr to 1000 Cr
technological innovations the technology has also reached optimal turnover have adopted various versions of
level of competence. ERP. This has led to better controls in
taking place in the apparel manufacturing operations besides
manufacturing of apparels? Another area where advanced technology reducing the manpower dependency and
has developed the sector is the quality and errors emerging out of it.
Apparel manufacturing over the last two features in the sewing machines. Machines
decades has witnessed substantial new with auto thread cutters with better
technology infusion. The technological electricity utilisation have led to a lower
How does the company
intervention can be broadly classified operational cost of the sewing machines. make use of technology
under two categories:
1. Product manufacturing technology Computer aided designing software is
in marketing and supply
2. Operational efficiency enhancing another technological intervention that chain management of
technology has witnessed substantial improvisation
In the former, technology has changed and higher efficiency. Better CAD
their products?
the face of the industry; innovation in systems have ensured better precision in Information technology intervention is
cutting of fabric is perhaps one of the fabric cutting, besides substantial savings one of the most important contributors
most critical one. Over the last two in fabric utilization leading to better in driving efficiencies in its operations
decades the automatic fabric cutting and quality of the garments and less wastage for the LUX group. All the depots and
fabric spreading technology have of the fabric. offices of the group are well connected
advanced and the important touch point with each other in SAP and also through
here is that the technology has become a On the operational efficiency enhancing video conferencing. Most of the dealer
bit less expensive. Global corporates have technology front, one of the most communication across the country
invested substantial research and significant technological intervention is happens through sophisticated software.
development dollars in making the auto the production related ERP systems. Over All these help the LUX group to reach its
cutters and auto spreaders more the last 10 years many organizations in stakeholders in real time. DS

Interview
Pramoud Rao
MD, Zicom Electronics Security Systems
Tech becomes the

key component
How is technology security against Fire, Intrusion, and technology solutions, improvement in
evolving with respect to CCTV etc. the adaptation of cloud the overall surveillance efficiency &
technology is further accelerating to the accuracy through innovative technology.
electronic security growth of electronic security seamlessly Currently the electronic security system
system? holistically. is closed to a billion dollar and growing.
In 1995 security systems were installed in

a standalone mode, a decade later 2015
What potential do you What are Zicom
security started getting involved in a see for security system Electronic Security
network more.
to grow in India? systems plans for the
Decades later in 2015 security systems Currently the market is growing at a domestic market when
are now moving towards the IOT steady rate on 20 %. Thanks to Nil duty
platform. CCTV systems now prevent on CKD/SKD of CCTV systems, the
coming up with new
crime rather than recording a crime, markets are showing exponential growth. technology solutions?
command stations are mushrooming A substantial shift to digital IP video
across the country providing 24x7 solutions, requirement for scalable Zicom is focusing on creating product &
services on the IOT platform under the
Electronic security system SaaS model. BFSI, Educational institutes,
housing complexes, smart cities will be
our focused area. With technology
is closed to a billion dollar and evolving everyday we are updating &
upgrading our go to market strategy to
growing.
remain relevant and continue with our
leadership. DS

Interview
Bhavin Turakhia
CEO & Co-Founder, Zeta
Technology at the
forefront to save
cost, manpower
and time in a bid to
add more value to
peoples lives
As the ways to do our technology to create an advanced, ways we process data and apply them to
business are evolving digital product suite that remedies the decision making. This decision making is
inefficiencies of the conventional way in done by higher-order thinking computer
across the globe: what which salaried professionals receive and programs with minimal or no human
according to you is the spend their tax benefits.It saves our intervention. The investment in
clients' cost, manpower and time. IoT(Internet of Things) and automation
role of technology? is steadily increasing, and this will play
Scientific knowledge has always been at an influential role in the future of IT.
the heart of business and industry. Even
How tech innovations
before the existence of technology as we can change the IT Do you see spending on
understand it today, progressive minds
were busy pushing the boundaries of what
industry? technology and related
was possible. With technology being a Its no surprise that India is the worlds
much more accessible means today, the largest sourcing destination for the IT
entries increasing in next
goal should always be to radically improve industry. It accounts for approximately three to five years? If yes,
existing ways of doing business and create 67 percent of the USD124-130 billion
new ones. Its this responsibility to add market. When you think about the
by what percentage?
more value to peoples lives that drives massive implications this has on the Forecasts by Gartner estimate that in
todays businesses. Zeta is on a mission to world economy, it must also be 2017, global IT spending will reach US$
make payments easy, inclusive and more noteworthy that technological 3.5 trillion. This forecast includes in its
valuable for corporations, professionals innovation here is continually driving net communication services, IT services,
and merchants everywhere in India. Our this engine. The more we innovate, devices, software and data centre
products are built around the idea that higher-order thinking through computer systems. It is estimated that in the next 3
spending and receiving money should be programs will become more advanced. years this industry would grow anywhere
seamless for everyone. Weve harnessed Today were getting very advanced in the between 1.5 to 2.9 percent. DS

Special Report
The Best Of DSIJ Products'
Recommendations
Consistence performance A habit
Country's most trusted and largest circulated investment fortnightly, Dalal Street The hard part is
Investment Journal had started its journey 31 years back from now to deliver unbiased,
effective and pricy research on stock markets to its valued reader-investors. As we discipline, patience,
celebrate yet another anniversary, we are here today to look back at our past
recommendations of stocks to remind you about the quantum of returns that those and judgment. Investors
have clocked since recommended.
need discipline to avoid
Risk appetite
If ones goes to a restaurant and looks for picking up food from a buffet, the person is
the many unattractive
lured by the variety of cuisines. From elaborate set of starters to main course to
desserts-all look interesting and yummy. The person who eats only knows his appetite
pitches that are thrown,
and choices. However, while selecting the right menu for oneself, one should be aware
of the appetite. Similarly, in a stock market an investor is lured by all types of stocks,
patience to wait for the
small-cap, penny stocks, mid-caps and large-caps. One should select the stocks based right pitch, and judgment
on how much downside risk he/she has the appetite for.
Considering the risks of the products, we design products that can best address the to know when it is time to
different risk appetites of the investors.
swing.
Investment horizon
Investment horizon has so much to do with an investor's level of patience and it - Seth Klaraman
emanates from risk appetite.
Weaving together the two factors mentioned above, we try to bridge gaps in our
offerings to the investors.
Value Tiny
Product FNI DSIJ Mid- Bridge Upstream Vriddhi
pick Treasure
Risk
Investment
High Moderate
Upto Upto
Low
Upto
High
Upto
Moderate Moderate Low
Upto Upto Upto
We should not judge
Horizon 6 Mths 1 Year 1 Year 1 Year 1 Year 2 Year 3 Year people by their peak of
Investment philosophies excellence; but by the
For companies it is important to keep innovating. As per Scott Belsky, co-founder of
Behance-its not about ideas. Its about making ideas happen. distance they have
Going by this old saying, we developed elaborate models following various investment
travelled from the point
philosophies so that it is easy for an investor to invest in various established investing
modules. We wanted to convert for the investors the technical jargons of investing into
where they started.
easily understandable products. The quantification of the ideas of various gurus,
choosing and picking up correct financial and subjective parameters and backtesting - Henry Ward Beecher
went into developing this products.
We purely believe that investment philosophies can be different but goal is to provide
investors with returns over their invested capitals.

Snapshot of returns on our various products
For the entire landscape of our investors, we provide this report card of our top performing recommendations.
DSIJ MAGAZINE FLASH NEWS INVESTMENT

Here we have sections like Low Price, Flash News is for high risk appetite
Choice Scrip and cover story investors and for a short-term
recommendations. Low price had duration. In this we provide two
recommendations on less than ` 100 fundamental recommendations
as the share price and while choice is with holding period of upto 6
a stock from BSE 500. The months. We were able to achieve
performance has been great across average annualised returns of
all our sections. We were able to ~68% on recommendations given
provide annualised returns greater over the last one year.
than 75%.
Recomm. Recomm. Exit Exit Annualized Recomm. Recomm. Exit Exit Annualized
Scrip Name Company Name
Price Date Price Date return % Price Date Price Date return %
Aro Granite Industries 52.0 06-Jul-16 68.5 14-Jul-16 1447.7 Universal Cables 73.45 05-Jan-17 97.25 16-Jan-17 1075.2
Ramco Industries 161.2 13-Sep-16 273.5 20-Oct-16 686.7 Ujaas Energy 43.4 08-Dec-16 50.2 15-Dec-16 817.0
Gufic BioSciences 50.7 21-Dec-16 60.8 04-Jan-17 521.9 Banco Products (India) 154 07-Jul-16 209.6 04-Aug-16 470.6
Rama Steel Tubes 111.7 30-Aug-16 135.1 15-Sep-16 477.9 Escorts 132 18-Mar-16 172.35 18-Apr-16 359.9
Bharat Financial Inclusion 730.6 13-Sep-16 920.7 03-Oct-16 474.8 Satin Creditcare Network 326.9 29-Dec-16 449.35 06-Feb-17 350.6
Surya Roshni 182.7 30-Aug-16 234.6 28-Sep-16 357.5 Shanthi Gears 101 26-May-16 118.05 16-Jun-16 293.4
Capital First 557.4 21-Jun-16 747.9 28-Jul-16 337.0 KEI Industries 120.6 15-Dec-16 168.15 03-Feb-17 287.8
Virinchi 61.9 22-Nov-16 88.5 17-Jan-17 280.1 Ugar Sugar Works 30.55 05-Jan-17 36.1 02-Feb-17 236.8
V2 Retail 48.2 11-May-16 84.8 25-Aug-16 261.5 Caplin Point Laboratories 341.2 15-Dec-16 429.15 25-Jan-17 229.5
VRL Logistics 275.6 08-Jun-16 348.2 21-Jul-16 223.6 Tata Chemicals 436.5 07-Jul-16 554.4 23-Aug-16 209.76
INVESTOR PRODUCTS
We have been launching investor products over last one year. We started with Value Pick followed by Tiny Treasure and Mid
Bridge. Keeping in view the interest of long term investors, our recent launches have been Upstream Pick based on contrarian
investment philosophies and another product, Vriddhi based on growth investing philosophies. Being recent launches, we
have not closed any position for the later product.
Product Company Recomm. Date Recomm. Price Closing date Closing price Annualized Returns %
Tiny Treasure *Bhageria Industries Ltd. 28-Jul-16 218.15 17-Aug-16 307 743
Mid Bridge Sudarshan Chemical Industries Ltd. 22-Dec-16 283.5 08-Feb-17 374 243
Tiny Treasure Jayant Agro Organics Ltd. 25-Aug-16 341.25 16-Nov-16 450 140
Value Pick *Caplin Point Laboratories Ltd. 11-May-16 931.6 03-Oct-16 1420 132
Value Pick Bosch Ltd. 10-Mar-16 17920 05-Aug-16 25000 97
Mid Bridge JM Financial 21-Jul-16 55.95 20-Feb-17 84 86
* Pre split price
We have closed 9 calls in Value Pick, Mid Bridge and Tiny Treasure and have been able to provide
annualised average returns of 165% in less than a year.
Its our constant endeavour to improve our offering and products to provide value to investors. We believe our journey has begun
and would like to travel far built on trust of our customers. Thanks for believing in us and being with us all these years. We are sure
you will continue to be with us, not just because we are the best but we are the most trusted.
(Compiled by DSIJ Research Unit)

Cover Story
Creating Wealth Via Tech Route In The Days

Of Disruptions And Tougher Competitions
Joydeep R Ray and Karan Bhojwani sniff around a number of
large conglomerates operating in India to understand how they
have been creating wealth while facing business threats from
unexpected quarters in these days of tech evolutions. While they
figure out the imminent threats, they also find spirit of India Inc.
remains unputdownable.
Meanwhile, Lohit Bharambe and Abhishek Kumar speak to

almost two dozens of captains of the country's various industries.

disruptively changing the way we Prabal Basu, Chairman & Managing
communicate, educate, medicate and Director of Balmer Lawrie & Co believes
eradicate. spending on technology means spending
on the key process of creating wealth.
Then comes this more human story when While interacting with DSIJ during an
Lata, a mother of two, a working woman exclusive encounter, Basu said, We have
proficient in the advertising field, needed been and will continue to invest more
to take her children to an animated and more in R&D and technology to
movie on their special day i.e. birthday, drive competitive advantage for us in the
because of her busy schedule she forgot market place. It is impossible to attain
to go to silver screen corridor to book long-term business success without
tickets. However, an hour prior to the leveraging the benefits of technology.
show, she managed to book the tickets,
but not by going to cinema hall Take the case of Mukesh Ambani
personally, but rather through an promoted Reliance Jio. Reliance Jio has
application in only a solitary snap. brought a kind of revolution in Indias
telecom sector. Beginning from its free
The above cases are only a couple of sim card offering and free data usage, it
instances which show how technological has enabled the Indian customers to
advances in the last 4-5 years have experience the 4G data usage. In the
changed the lives of people and also the month of September 2016, Mukesh
way companies operate. Other than these Ambani announced the hotly-
changes in our personal lives, technology anticipated launch of Reliance Jio
has also changed the face and the pace of Infocomms services, outlining a strategy
how we do business. Business processes that promised to transform Indias
have been modified and organisations are telecom business by offering free voice
now working much more efficiently than calls and mobile internet alongside an
ne of the most prominent faces of Indias ever. At the same time, technology has extensive variety of entertainment
pharmaceutical industry, Kiran opened a new way of communication, option.
Mazumdar Shaw, Chairman & Managing allowing businesses to communicate and
Director of Biocon, spends a significant collaborate beyond borders. Then comes Working on the fundamentals of being
chunk of her daily schedule to monitor a set of fresh challenges too. truly digital, the Jio connection,
technological evolutions within her
company. Looking at the recent
happenings around the world which
have not only cut the business calendars
In todays world, technology is playing
shorter, brought unexpected challenges
from not-so-much known quarters, she a transformational role in enabling
believes technological disruptions can
only be negated with the help of innovation, and driving change.
innovations and technological
advancements. This has become a regular Information technology, communication
practice in Biocons campuses as Shaw
believes to create wealth, companies like technology and biotechnology are
Biocon must increase their R&D spends.
Talking to DSIJ exclusively, the captain of rapidly and disruptively changing the
Biocon said, In todays world,
technology is playing a transformational way we communicate, educate, medicate
role in enabling innovation, and driving
change. Information technology, and eradicate
communication technology and
biotechnology are rapidly and

Cover Story
Changes are there in other sectors also.
We have been and will continue to One of the highest rated airlines, Air
Vistara since its birth has been
invest more and more in R&D and emphasising more and more on being
technologically armed on the wake of
technology to drive competitive unknown threats when it comes to doing
business. Ravinder Pal Singh, Head of IT
advantage for us in the market place. It & Innovation at Air Vistara told DSIJ,
Vistara is Indias first airline that is born
is impossible to attain long-term on Cloud. We invest in commodity
platforms with equal zeal as in open
business success without leveraging source platforms, depending on the
specific requirements. Vistaras core
the benefits of technology values include thoughtfulness and
innovation.
So doing business is now changing fast.

according to officials, takes 15 minutes to payments, etc. The payment system and The companies need to return invested
activate, with a Jio PoS application given banking has changed from the old school amount to their stake-holders, the
to merchants for faster sales. Besides, conventional technique to wallet and companies which are listed on the
officials say that more than 90 per cent of portable application method. Be that as it bourses also need to keep their retail
connections given are through biometric may, the innovation progression has not investors happy so that they can keep
verifications. ceased here as innovation is known for coming back to them for raising capital
its consistent advancement of process, as and when needed. During the process,
Even the banking sector is now bringing the banking and the whole payment companies are leaning more and more
in new technologies to ensure system is now approaching towards a on newer tech options which will move
continuation of its process in terms of major inflection point. The introduction things faster and better. Research
creating wealth even in future as the of BlockChain technology is emerging as Director of Gartner, D D Mishra has
business cycles getting shorter and a potentially disruptive force capable of been observing the developments very
disruptions in the shape of unexpected transforming the financial services closely. He talks about arrival of smart
competitions are arriving from industry by making transaction faster, machines while adding smart machines
unexpected competitors. Indian bankers cheaper, more secure and transparent. will continue to grow. Another
are now opening the door to Blockchain. important area which is emerging-digital
Sanjay Sharma, Head of Technology in
RBL Bank said, Banks are the ones who
are exploring new areas and new
products using new emerging
Banks are the ones which are
technologies. RBL Bank is using
technology that emphasises on exploring new areas and new products
Blockchain, remittance products and
one that is useful for improving supply using new emerging technologies. RBL
chain. We are the first bank to launch
open banking and API banking. While
taking a note that technology has been
Bank is using technology that
leading to further expenses by entities
like RBL Bank but also helping them to
emphasises on Blockchain, remittance
garner wealth thus benefitting the retail
investors and customers, Sharma said,
products and one that is useful for
As we go forward, the spending
percentage for technology will keep
improving supply chain. We are the
growing in future. first bank to launch open banking and
In the last couple of years or so, the
world has seen a gigantic turnaround in
API banking
the way people transfer money, make

Cover Story
twins. A digital twin is a dynamic
software model of a physical thing or
system that relies on sensor data to
Another important area which is
understand the state of the thing
or system, respond to changes, emerging-digital twins. A digital twin is a
improve operations and add value,
Mishra said. dynamic software model of a physical
Is India ready to face the new challenges, thing or system that relies on sensor
are our companies enough armed to face
the threats, newer competitions, data to understand the state of the thing
challengesAdi Godrej, Chairman of
multi-diversified Godrej Group says, I or system, respond to changes, improve
feel industries in India are adapting fast
to adopt new technologies to improve operations and add value
business performance. I see the role of
been gearing up to handle such issues.

I feel industries in India are adapting Indeed technology is changing the
way we consume services or products,
fast to adopt new technologies to but the companies are also changing
fast smartly and using technology
improve business performance. I see the only to negate these threats while also
keeping focus on wealth creation.
role of technology increasing Best summed up by Ashish Kumar
considerably across businesses in the Chauhan, CEO of Bombay Stock
Exchange. It is all about technology.
future as it enables efficiency and Because of tech advancements, we are
doing extremely well. Regular
increased productivity monitoring of tech related issues,
giving clients legitimate advantages
due to advancing technologies,
making deals faster, resolving
technology increasing considerably

across businesses in the future as it
Vistara is Indias first airline that is born
enables efficiency and increased
productivity. on Cloud. We invest in commodity platforms
Founder of e-commerce platform, with equal zeal as in open source platforms,
Shopclues, Sandeep Aggarwal believes
the government should also step in
helping the companies in such cases of
depending on the specific requirements.
battling the challenges out. Of all issues,
e-infrastructure issues are daunting as
Vistaras core values include thoughtfulness
this requires the government to step in.
Internet being the very backbone of
and innovation
e-commerce, it has become one of the
major hindrances for the growth of accounts fasterall these are actually
e-commerce in India with a dismally low As we speak to more and more helping us to create wealth end of the
internet penetration. Similarly lack of companies operating in India, mostly the day. Chauhan concluded. DS
technical knowledge and online listed ones, we smell one thing very
awareness simply add to the woes of the strongly that on the wake of recent (With inputs from Avalokita Pande
segment, Aggarwal opined. threats, India Inc. slowly but steadily has and Nikita Singh)

QueryBoard
Investment Horizon
Query-Specific
KWALITY ASHAPURA INTIMATES FASHION

I bought 500 shares of Kwality at `138 per share. I bought 850 shares of Ashapura Intimates Fashion
Should I hold or exit at current level? at `389. Should I hold or exit at current level?
- Sanjay - K R Santosh
HOLD HOLD
BSE/NSE Code 531882 / KWALITY BSE/NSE Code 535467 / AIFL
Face Value `1 Face Value `10
CMP `160.35 CMP `408
52-Week High `162.30 / Low `85.55 52-Week High `480.50/Low `231
Your Current 16 per cent Your Current 5 per cent
Profit/(Loss) Profit/(Loss)
K A
wality is engaged in the processing, manufacturing and shapura Intimates Fashion (AIFL) is engaged in the
trading of milk, milk products and dairy products. The division manufacture of various kinds of textile
company is an exporter of dairy products from India, products, including apparels. It offers a range of
exporting across continents, such as Asia, Africa and Australia, collection of lounge wear for men, women, kids and toddlers
and to over 30 countries, including Japan, Seychelles, under the Valentine Loungewear brand. On the financial front,
Bangladesh, Sri Lanka, Jordan, Nigeria and Morocco. On the AIFLs revenue increased 2.87 per cent to `36.2 crore in Q3FY17
financial front, Kwalitys revenue increased 8.5 per cent to as compared to same period in previous financial year. The
`4597 crore in 9MFY17 as compared to same period in previous companys operating profit too rose 27.13 per cent to `6.56 crore
financial year. The companys EBITDA too rose 13.9 per cent to in Q3FY17 on a yearly basis. Its net profit also increased 9.79 per
`307 crore in 9MFY17 on a yearly basis. Its EBITDA margin cent to `2.58 crore in Q3FY17 as compared to same period in
expanded by 31 basis points to 6.7 per cent in 9MFY17 as previous fiscal. AIFL has a pan-India presence with a network of
compared to same period in previous fiscal year. Kwalitys net 115 distributors and 10 carrying and forwarding agents catering
profit also increased 17.6 per cent to `129 crore in 9MFY17 on a to 14,000 points of sales. The companys products sold to
yearly basis. Kwality has begun commercial production at its new customers go through the centralised warehousing facility via
unit at Softa plant, Haryana, dedicated primarily for value-added carrier services. It hires professional services of independent
products. The unit will have milk handling capacity of 0.9 agents on a commission basis who work on a regular contract
million litres/day, primarily for value-added products such as basis, depending upon the product category.
Flavoured Milk, Paneer, Cheese, UHT milk, Cream in tetra AIFL currently has 30+ Exclusive Brand Outlets (EBOs) across
packs, Table-Butter, Yoghurts amongst others, with a total capital India. Its EBITDA margins are higher by 15 per cent to 20 per
outlay of approximately `400 crore. With this unit, the cent in the EBO model along with a lower credit period. It has
cumulative milk processing capacity of Kwality would reach 4.3 plans to open 100+ more EBOs on a PAN India basis in the next
million litres/day across its six plants. Owing to the companys two to three years. Owing to companys organic growth, we
organic growth, we recommend to HOLD the stock. recommend to HOLD 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
32 No.
No. 07
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

QueryBoard
Investment Horizon
Query-Specific
ABM KNOWLEDGEWARE DCW

I am holding 200 shares of ABM Knowledge Ware at Im holding 500 shares of DCW at `25, should I hold
`150, Should I hold? the stock or exit at CMP?
- Hemubha C. - Hemubha C.
HOLD HOLD
BSE/NSE Code 531161 / ABMKNO BSE/NSE Code 500117 / DCW
CMP `151 CMP `32.55
52-Week High `180/ Low `90 52-Week High `40.00/Low `19.20
Your Current NA Your Current 30 per cent
A D
BM Knowledgeware (ABM) is focused on providing CW has invested over `800 crore over the past four
e-governance solutions. The company has developed a years to manufacture speciality chemicals including
thorough insight in implementing and institutionalising iron oxide pigments used in paints, tiles and
e-governance in the Indian context, which is evident from the infrastructure, and chlorinated ponlyvinly chloride (CPVC),
various projects implemented by ABM so far. These solutions used in pipe manufacturing. It will manufacture red and yellow
and expertise have wider applicability in Commonwealth iron oxide pigments. It has developed red pigments in
countries due to similarities in administrative systems used in partnership with an MNC, Hunstman. Under the arrangement,
these countries. it will buy 30-40 per cent of the total production and the rest
will be sold by DCW in the domestic and overseas market. The
ABM MAINet Enterprise is an integrated suite of application yellow pigment is developed in-house.
products to manage the working of a municipal corporation.
ABM CARE is a browser-based system for complaint DCW has a capacity of 32,000 tonnes per annum of iron oxide
acceptance. ABM MOIS 2000 is a tool, which facilitates the task pigment and 12,000 tonnes per annum of CPVC. The
done by any government or semi-government organisation to contribution to the earnings will be much higher since
manage and work on a range of letters and cases/files every day. speciality chemicals command higher profitability and major
Its CRM solutions are web-based and serving power sector as a raw materials including chlorine and ammonia are obtained
dual channel service delivery model. ABM GRP is an enterprise through internal processes as byproducts thereby reducing
resource planning for government. input cost.
On financial front, its revenue for the Q3FY17 stood at `19.88 On financial front, Q3FY17 was good, mainly on the back of
crore as against `18.39 crore in the corresponding quarter last lower costs and better performance at EBIT level from caustic
year. Net profit rose 37.23 per cent to `5.75 crore in Q3FY17 as soda and PVC segment. Overall EBITDA stood at `38.54 crore,
against `4.19 crore in the corresponding quarter of the last year. up by 31 per cent and margins improved to 11.47 per cent from
The companys earnings growth was influenced by Y-o-Y 10.58 per cent. It ended the quarter with a net profit of `5.09
improvement in gross margins from 41.12 per cent to 47.41 per crore. For the nine months ended December 31, 2016, the
cent as well as better cost controls. As a result, operating company registered a 4.8 per cent growth in net profit of `15.14
margins (EBITDA margins) rose from 35.62 per cent to 42.76 crore whereas its topline marginally de-grew by 3.9 per cent at
per cent compared to the same period of the last year. Recently, `989 crore as against `1,028.9 crore same period of the last year.
the company has approved a strategic investment in Bangalore-
based security solutions provider InstaSafe Technologies Pvt. Recently, its management has reached settlement with the
Ltd as it looks at adding tech product to its portfolio. The workers union of the company factory at Sahupuram, Tamil
aggregate investment would be up to `15 crore over the next Nadu and lock out has been withdrawn from February 22,
12-15 months. The strategic stake in InstaSafe will add a 2017. The manufacturing operations also commence from
bouquet of technology product to an already array of ABM February, 2017. Considering the growth prospect and
portfolio of e government services. Hence, HOLD this stock for settlement with workers union of the company we recommend
long term. to HOLD this stock.

QueryBoard
Investment Horizon
Query-Specific
AMARA RAJA BATTERIES SPICEJET

Should I buy Amara Raja Batteries? If so at what Ive bought 3500 shares of Spicejet at `76, should I
price should I purchase? hold or exit at current level?
- Satish Pradhan - K. Ganesh Pai
BUY HOLD
BSE/NSE Code 500008 / AMARAJABAT BSE/NSE Code 500285 / SPICEJET
CMP `851.30 CMP `75.45
52-Week High `1077/Low `821.30 52-Week High `85.60/ Low `54.50
Your Current NA Your Current NA
A S
mara Raja Batteries Limited is a manufacturer of picejet is engaged in the business of scheduled air
lead-acid storage batteries for industrial and automotive transport services. Its geographical segments include India
applications in India. and others. It provides air transport services for the
carriage of passengers and cargo. The company is a low cost
On financial front, Amara Raja Batteries revenues were at `1,328 carrier (LCC) operating under the brand name of Spice Jet in
crore up by 9.6 per cent on YoY basis. The performance of the India. SpiceJet, with about 13 per cent domestic market share,
company was affected mainly due to the demonetisation process has 343 daily flights to 45 cities with 32 Boeing 737NG and 17
as it impacted the 2-W [(OEM) + replacement] and 4-W (OEM) Bombardier Q-400 planes.
segments though it managed its growth trajectory in the
replacement segment. Overall, Amara Raja reported increase in On financial front, Spice Jet reported a sharp drop in profit in
its market share in both 2-W and 4-W replacement spaces. the October-December period of financial year 2016-17. Net
profit declined 24.5 per cent to `181.1 crore from `239.9 crore
Its EBITDA margins contracted 362 bps YoY and 172 bps QoQ in the corresponding quarter last year. The profit for the
to 15.4 per cent. This was largely on account of higher input cost October-December 2016-17 quarter were impacted by
(average lead price in Q3FY17 was up 30.5 per cent YoY & 15.6 demonetisation and higher fuel prices. Revenue rose 12.5 per
per cent QoQ to `145 per kg) impacting gross margins that cent to `1,642.4 crore from 1,459.95 crore the year before.
declined 336 bps YoY and 87 bps QoQ. Amara Rajas PAT Earnings before interest, tax, depreciation, amortisation and
declined by 17.9 per cent YoY to `112 crore. rental lease (EBITDAR) dropped 20.7 per cent to `417.7 crore.
This was primarily due to higher jet fuel prices, which rose by
For the nine months ended December 31, 2016, the company 29.2 per cent and aircraft maintenance cost which increased by
registered a gross income of `4,491.48 crore as against `3,919 44.9 per cent. Still, it was the eighth straight quarter SpiceJet
crore and posted a profit of `379.30 crore as against `382.57 crore reported a profit after nearly shutting down in December 2014.
same period of the last year. Expansion of the four-wheeler
battery capacity is expected to be commissioned in the next In January 2017, Spice Jet entered into a deal with Boeing for
quarter. delivery of 205 aircraft valued at USD22bn, the largest
commercial aircraft deal in India. Of these, 155 aircraft are
Prices of lead, a key raw material for batteries, have jumped 30 orders of Boeing 737-8 MAX, with purchase rights for the
percent YoY & 15.6 per cent QoQ to `145/kg in Q3 of FY17 balance 50. The airlines expects the fuel-efficient MAX aircraft
against the average of the previous quarter. Battery makers need to help it save about 20 per cent fuel costs, higher than the
to raise prices by nearly 15% to offset higher lead prices. Whereas, savings from Neos. The company has included a clause that
the company has took a price hike in the range of 3-7 per cent allows it to convert the MAX order into wide-bodied planes
during the month of December, 2016. It has partly passed on the that can fly to Europe and beyond in the future. We believe, this
sharp increase in raw material cost i.e. lead, which is likely to imparts long-term visibility to business sustenance. Therefore
bolster its margins going forward. Moreover, with the effect of we recommend to HOLD this stock.
demonetisation fading and GST to improve its cost
competitiveness with unorganised players, we recommend to
BUY the stock on dips around `820-830.
(Closing price as of Mar 01, 2017)

Letter to Editor
Reader Writes
T
hanks for the encouraging words on my critical erroneous. Further, the comparison of reported increase in net
comments relating to the earlier issue. In the profit by 7.1% for 9M period is taken with a pinch of salt. In my
Editorial Remarks, you have very correctly view, *QoQ basis or YoY basis would be a better yardstick to
mentioned that the outcome of Assembly Elections reflect performance* as some cyclical/ seasonal preferences are
(in 5 States) would be crucial. It is apprehended always there, which get better appreciation when comparison is
that the markets may be impacted with high volatility, on made for corresponding periods.
positive or negative side, depending on the outcome and thus,
the *present time demands great caution in making investment The *Cover story*, Trump Stumped IT and Pharma is quite
decisions*. Your acceptance about Demonetisation taking a toll timely and thought provoking, *giving very balanced views* of
on certain sectors is a harsh reality and some of the contents the prevailing scenario. Quite many *doubts and fears got
under the Special Report, Q3 earnings: An Exhaustive clarified* and thanks to the team for making such nice effort
Analysis of Six key Sectors are also reflective of similar impact, and benefiting the Reader Investors of DSIJ.
although with the *hope that the impact may get diluted and we
may see the overall (Annual) earnings remaining in line with I look forward to see continuation of such powerful
expectations*. We value this optimism and hope to remain a coverage on matters of importance in forthcoming issues..
gainer by remaining invested. However, *whether the whole
exercise of Demonetization was worth the pains suffered*, by - Ajay Gupta
the Industry as well as the masses, is still a moot question and
everybody is under the awe of facing the wrath of IT Editors response: Dear Mr Gupta, thank you for yet again a
department. With reference to the Choice Scrip detail analysis of our last edition. The suggestions coming
recommendation (pp 10), I may hasten to submit that the data from you have been noted for future references and actions.
for Total Income for March 16 and Dec 15 Quarters appear Keep writing to us. Regards
Company Trail Your Wishes

I I
would like to request you guys to explain more on a will like to take this opportunity of your anniversary
company called Mandhana Industries.It hasnt disclosed celebrations to thank you for the wonderful job you have
the details for the past few quarters. Isnt it officially been doing towards the investing community in India.
supposed to disclose its results to the SEBI i.e make it Though there are several others tried to replicate your
public whatever state the company might be going model, none of them could survive during the ups and
through. In case its refraining from doing so will there be any downs of the markets. How fast 31 years have passed and you
legal actions against such companies.Please do reply. still manage to play by your quality deliveries. Happy Birthday,
DSIJ. Here is to many more.
- Raghuveer Kona
- Sumit Chatterjee
Editors response: Dear Mr Kona, thank you for writing to
us. While we agree with you that every listed company is Editors response: Dear Mr Chatterjee, thanks for all the
supposed to furnish and share its all financial information wishes--we really feel excited. Indeed it had been a tough
with SEBI, there also may be certain situations when the journey but being backed by reader-investors like you, we
companies skip abiding by the norms. You may feel free to sailed through comfortably. Be with us in our further
approach SEBI on this, in person or emails. Regards journey, we will not disappoint you. Regards

Reviews
In this issue, we have reviewed HCL Technologies and Coal India. We suggest investors to
Book Profit in HCL Technologies and Coal India
Change Scrips Movement
HCL TECHNOLOGIES BOOK PROFIT 16 Per Cent
CMP - `840
BSE CODE Reco. Price Volume Face Value

532281 `723 115922 `2
W
e had recommended HCL and Business Process Outsourcing
Technologies in the Analysis services.
section of issue no. 12 dated
May 16-29, 2016 when the scrip was On the financial front, HCL Technolo-
trading at `723. Our recommendation gies Q3FY17 result reported a revenue
was backed by factors such as attractive growth of 3 per cent QoQ in CC, the
valuation as compared to its peers and revenue growth was led by Engineer-
significant IT outsourcing deal with the ing and R&D services (18.6 per cent of EBIT margin improved 30bps QoQ to
Volvo Group by acquiring its external IT revenue) which grew at a strong pace 20.4 per cent amid slight improvement
business. of 7.1 per cent QoQ and infrastructure in utilisation.
management services (39.8 per cent
HCL Technologies is engaged in of revenue) grew at 2.1 per cent QoQ. After our recommendation, the share
computer programming, consultancy HCL Technologies key verticals fired price of HCL Technologies has got
and related activities. The company in Q3 with manufacturing (33.9 per boosted more than 15 per cent.
provides a range of software services, cent of revenue) growing at 8.3 per Going forward, there are certain
business process outsourcing services cent QoQ and financial services (24.3 risks like Cannibalisation of IMS
and information technology (IT) per cent of revenue) growing at 4.5 revenue because of cloud adoption,
infrastructure services. It operates per cent QoQ. This more than offset possible US Visa constraints and
through three segments viz. software the impact of QoQ decline in revenue currency risk. Hence, we recommend
services, IT Infrastructure services in case of the other verticals. Further, to Book Profit.
Change Scrips Movement

COAL INDIA BOOK PROFIT 5 Per Cent
CMP - `322
BSE CODE Reco. Price Volume Face Value

533278 `306 987811 `10
W
e had recommended Coal Coal Fines/Coke Fines, and Tar/Heavy
India in issue no. 14 dated Oil/Light Oil/Soft Pitch.
June 13-26, 2016 when the
scrip was trading at `306 in Choice On financial front, the company on
Scrip section. Our Recommendation consolidated basis reported a total
was backed by factors such as operating income of `20414.6 crore up
Government of India increased the 4.2 per cent YoY and 25.9 per cent QoQ.
appetite for Coal, Price hike by Coal On the back of healthy increase in
India, Capacity expansion and better e-auction volumes, realisations EBITDA The Board of Directors of the company
financials. came in at `3854.9 crore up by 419.2 per has approved the buyback of 1, 50,443
cent QoQ and down 21.3 per cent YoY. fully paid equity shares of face value of
Coal India Limited (CIL) is an India- Coal e-auction prices increased 17 per `1000 each for an aggregate amount not
based holding company. The Company is cent QoQ, making up for the modest exceeding `1,200.19 crore.
a coal mining company, which is FSA price increase.
engaged in the production and sale of After our recommendation, the
coal. The Company offers products, In a recent development, South Eastern share price of Coal India surged 8 per
including Coking Coal, Semi Coking Coalfield Limited (SECL), an arm of cent. Hence, we recommend to
Coal, Non-Coking Coal, Washed and state-run Coal India, had approved a Book Profit. DS
Beneficiated Coal, Middlings, Rejects, share buyback plan of `1,200.19 crore. (Prices as on Feb 28, 2017)

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
ON GST HIGHWAY
On February 27, Goods and
GATI Services Tax (GST) will be
BSE Code: 532345 implemented from July 1, as all
CMP: `130 states have agreed on the
implementation date. The
government plans to get the GST
Councils approval drafts at its March 4-5 meeting before
the second half of the budget session of the Parliament
begins on March 9. After much needed clarity on the GST
implementation date, this stock has witnessed renewed
interest among the HNIs. Hence, this stock can be looked
for short term gains. Gati may soon gain the much
expected momentum bringing in gain for the investors.
GO MANALI Manali
REAL REALTY
Manali Petrochemicals DLF
Petrochemicals is a chemicals BSE Code: 532868 The price
BSE Code: 500268 company CMP: `154 movement
CMP: `40.60 developing in this
innovative counter
products that find application in a over the recent past has been
variety of industries. The government very good with large volume. The
is likely to impose anti-dumping duty stock price is expected to see
of up to USD 135.40 per tonne on further up-move. As per market
imports of a chemical used in foam sources, reality major DLF is
making from Thailand. The move is likely to come out with some
aimed at protecting domestic players positive announcement in the
from cheap imports of Flexible near term. Hence, high risk
Slabstock Polypol from the South-East investors can bet on this stock
Asian Company. Therefore, the stock for the short term.
can be looked at for short-term
trading gain.
AND FINALLY.. TPL Plastech

BSE Code: 526582
CMP: `543
TPL Plastech since its inception in 1995, has grown steadily to
become the second largest manufacturer of drums, especially
Bulk Packaging i.e. 210 Ltr to 250 Ltr capacities. The portfolio
consists of a comprehensive range of narrow mouth, wide mouth
and open top drums ranging from 25 Ltr to 250 Ltr capacity.
The price movement in this stock over the recent past has been
very good; the stock price is expected to see further up-move in
the near term. If the buzzes on Dalal Street are to be believed,
TPL is expected to give a sound return soon. One can invest or
stay invested in it.
DS
(Closing price as of Mar 01, 2017)

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CONTENTS Vol. 32 No.

07 MAR 6 - 19, 2017

16 Low Priced Scrip

100 111 121

6 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

8 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

Happy reading, happy investing!

DSIJ.in MAR 6 - 19, 2017 I DALAL STREET INVESTMENT JOURNAL 9

Vol. 32. No. 07 MAR 6 - 19, 2017

DSIJ Private Limited

10 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

UP Election Results May Impact it came in at 7 per cent

Equity Markets Movement

In domestic economic data, Q3 GDP 13th Feb 28th Feb Gain/Loss

12 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

Supreme Industries total debt stands at

14 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

BUILD ON SUPER HIGHWAY Highways Authority of India (NHAI).

16 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

BSE CODE Volume Face Value

18 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

20 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

MPHASIS .............................. BUY ................................. CMP `595

DISH TV INDIA .............................. BUY ........................ CMP `96.25

22 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

LOOKING FOR UNLOCKING VALUE INVESTMENT

24 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

Could you elaborate on how the

DSIJ.in MAR 6 - 19, 2017 I DALAL STREET INVESTMENT JOURNAL 25

26 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

28 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

30 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

32 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

36 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

38 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

The Company has developed a

The strength of the business is

Our increasing focus on speciality

Even when difficult times for the metal

Being a Leader in the Industry, HSCL

(` in Cr.) The Company has always focussed

The Company continues to focus on

DSIJ.in MAR 6 - 19, 2017 I DALAL STREET INVESTMENT JOURNAL 39

Integration of securities and commodities markets to be successful has to

40 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

42 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

44 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

DSIJ.in MAR 6 - 19, 2017 I DALAL STREET INVESTMENT JOURNAL 45

The individual investor should Disciplined, regular and diversified

46 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

VIVIMED LABS LIMITED

Active Finished Dosage Jarcol Hair Dyes

DSIJ.in MAR 6 - 19, 2017 I DALAL STREET INVESTMENT JOURNAL 47

The Method and The Logic

48 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

DSIJ.in MAR 6 - 19, 2017 I DALAL STREET INVESTMENT JOURNAL 49

Financial Snapshot Financial Snapshot

Promoters : 73.77 1742.92 Promoters : 74.98 4650.89

Others : 1.59 Others : 1.63

TOTAL : 100 PAT (` Cr) TOTAL : 100 PAT (` Cr)

50 DALAL STREET INVESTMENT JOURNAL I MAR 6 - 19, 2017 DSIJ.in

Financial Snapshot Financial Snapshot

Promoters : 72.67 3184.78 Promoters : 71.24 6686.90

Others : 2.15 Others : 2.79