VALUE INVEST

Target Price
Company Name NSE Symbol Sector CMP* (Rs.) Upside (%)
(Rs.)

Jain Irrigation Systems JISLJALEQS Industrials 52 80 55

K.P.R. Mill KPRMILL Consumer Discretionary 607 675 11

LT Foods DAAWAT Consumer Staples 28 44 55

Mahindra CIE Automotive MAHINDCIE Consumer Discretionary 228 321 41

Menon Bearings MENONBE Consumer Discretionary 75 115 53

MOIL MOIL Materials 154 223 45

Mphasis MPHASIS Information Technology 963 1247 29

NIIT Technologies NIITTECH Information Technology 1277 1612 26

Tata Elxsi TATAELXSI Information Technology 846 1159 37

Tata Sponge Iron TATASPONGE Materials 700 944 35

WEALTH MAXIMIZER
Target Price
Company Name NSE Symbol Sector CMP* (Rs.) Upside (%)
(Rs.)

Coal India COALINDIA Energy 245 291 19

GAIL (India) GAIL Utilities 337 418 24

Hindalco Industries HINDALCO Materials 192 269 40

Housing Development Finance HDFC Financials 2129 2394 12

Corp

ICICI Bank ICICIBANK Financials 412 450 9

Indiabulls Housing Finance IBULHSGFIN Financials 786 1075 37

Larsen & Toubro LT Industrials 1481 1700 15

Mahindra & Mahindra M&M Consumer Discretionary 640 813 27

State Bank of India SBIN Financials 342 385 13

Zee Entertainment Enterprises ZEE Consumer Discretionary 361 518 43

*As on May 23, 2019

Vivek Ranjan Misra

040 - 3321 6296
vivekr.misra@karvy.com

Karvy Stock Broking Research

is available on
Thomson Reuters &
Bloomberg (Code: KRVY<GO>)

2 ELECTIONS - MAY 2019

TIME FOR A PAUSE
Now back to fundamentals
Elections have dominated much of the market direction for a while with strong FII
flows of USD 7.4 Bn since March; while domestic institutions have been shy having
sold INR 110 Bn in the same period.
With elections out of the way, the market is likely to focus on fundamentals. There
are a few immediate worries for markets. The economy is facing a liquidity driven
slowdown caused by a credit crunch post the crisis in the NBFC sector, deposit
growth lagging credit growth, and FII outflows in 2018 and early 2019. Recent data
regarding auto sales and quarterly results of FMCG firms indicate some softness.
Recent IIP data which declined by 0.1% has been especially worrying. India has faced
an unexpected slowdown in consumer demand leading to an inventory build-up.
An Inventory correction, which we believe is under progress, can exaggerate the
extent of the slowdown in final demand.

Exhibit: India credit growth

35%
30%
25%
20%
15%
10%
5%
0%
Apr-94
Apr-95
Apr-96
Apr-97
Apr-98
Apr-99
Apr-00
Apr-01
Apr-02
Apr-03
Apr-04
Apr-05
Apr-06
Apr-07
Apr-08
Apr-09
Apr-10
Apr-11
Apr-12
Apr-13
Apr-14
Apr-15
Apr-16
Apr-17
Apr-18
Apr-19
-5%

Source: Karvy Research, Bloomberg

The Reserve Bank of India has acted to restore liquidity in the market with OMO as
well as two USD-INR swaps and the liquidity position has eased, but more action is
needed.

Exhibit: India banking system liquidity

4000
3000
2000
1000
0
-1000
-2000
-3000
-4000
-5000
-6000
2013 2014 2015 2016 2017 2018 2019
Source: Karvy Research, Bloomberg,

More then zero indicates a deficit in the banking system.

ELECTIONS - MAY 2019 3

 The new government faces constraints, having set a target of 3.4% of GDP for fiscal
deficit and with revenue targets likely to disappoint. Slowdown in growth rate of
government spending has been a factor in the slowdown of the economy. In the
first three quarters of FY2018-19, government spending grew by 9.2% compared to
16% in the same period of FY2017-18.
We do believe that the economy should recover in Q2FY2019-20. More importantly,
capex is likely to pickup, this is especially important for markets as this can drive
corporate earnings growth. However, capex spending probably slowed down in
Q4FY2018-19 and may be subdued for Q1FY2019-20 due to the liquidity crunch. It
is worthwhile to note that some companies were in a wait and watch mode due to
political uncertainty, which is out of the way now.

Reversal of underperformance:
Indian equities underperformed emerging markets by 10.2% in the first two
months, but since then have outperformed by 8.1%. While Indian equities have
underperformed in 2019, the recent trend indicates an outperformance.

Exhibit: India outperforming peers

180

160

140

120

100
Relative to EM Relative to AP x JP Relative to EM Asia Relative to AC World
80
Oct-16

Oct-18
Oct-13

Jul-14

Oct-17
Jul-15

Jul-16

Jul-18
Jul-13

Jul-17
Jan-14

Apr-14

Jan-15

Jan-16

Jan-19
Jan-18
Apr-15

Apr-16

Apr-19
Jan-17

Apr-18
Apr-17
Oct-14

Oct-15

Source: Bloomberg 2019, Karvy Research

The reason for the underperformance on the face of it is the lack of enthusiasm
among institutional investors. FII flows were weak; they pulled out USD 0.31 Bn until
mid February, since then, there has been a reversal. FIIs have invested USD 9.7 Bn
in Indian equities.

Exhibit: FII Inflow and returns

1500 90%

1000 60%

500 30%

0 0%

-500 -30%

-1000 -60%
2010
2000

2011
2001

2014
2004

2015

2016

2019
2018
2005

2006

2009
2008

2013

2017
2012
2003

2007
2002

FII Inflow (Rs. bn) Nifty returns %

Source: Bloomberg, Karvy Research

Domestic investors have been on the sidelines, having sold equities worth Rs. 95 Bn

4 ELECTIONS - MAY 2019

 Exhibit: FII and Domestic investors
8000

6000

4000

2000

Apr-07
Oct-07
Apr-08
Oct-08
Apr-09
Oct-09
Apr-10
Oct-10
Apr-11
Oct-11
Apr-12
Oct-12
Apr-13
Oct-13
Apr-14
Oct-14
Apr-15
Oct-15
Apr-16
Oct-16
Apr-17
Oct-17
Apr-18
Oct-18
Apr-19
-2000

FII flows Domestic flows

Source: Bloomberg, Karvy Research

The global economy remains fragile, with trade wars and crude oil prices being
major risks. Flattening of the US yield curve is bad news, however, the yield curve is
yet to invert, which typically acts as a warning sign of tough days ahead.

Exhibit: US yield curve 10 year – 2 year yield

4.0

3.0 20 bps
2.0

1.0

0.0

-1.0

-2.0

-3.0
1976

2010
1978

2000
1986

1988

1996

1998

2014
1982

1992

2004

2016

2018
2006

2008

2012
2002
1980

1990
1984

1994

Source: Bloomberg, Karvy Research

The fragility of the global economy is largely on account of a weak Chinese economy,
China announced earlier in the quarter that its growth rate for the year will be around
6.00 to 6.50%, the slowest pace in 30 years; however, China has announced steps
to stimulate the economy. Data from China has been unhelpful; exports in April 2019
fell by 3%. Chinese FAI growth for 2018 at 5.9% was at an 18 year low.
China contributes the most (about one-third) to global growth, and with a debt to
GDP ratio of 265%, the problems in China are structural in nature.

Exhibit: China FAI

60

50

40

30

20

10

0
1998 2001 2004 2007 2010 2013 2016 2019
Source: Bloomberg, Karvy Research

ELECTIONS - MAY 2019 5

 However, China has launched a sizable stimulus programme, both monetary (350
bps RRR cut since beginning of 2018) and fiscal as well. However, the incremental
impact of these measures may be lower than the past, but they appear to be having
impact. There appears to be stabilization in China’s growth prospects which were
in free fall.

Exhibit: China PMI now back above 50

54

52

50

48
Dec-11

Dec-12

Dec-13

Dec-14

Dec-15

Dec-16

Dec-17

Dec-18
Apr-11

Apr-12

Apr-13

Apr-14

Apr-15

Apr-16

Apr-17

Apr-18

Apr-19
Aug-11

Aug-12

Aug-13

Aug-14

Aug-15

Aug-16

Aug-17

Aug-18
Source: Bloomberg, Karvy Research

ECONOMIC GROWTH MAY PICK UP

Since the last crisis during the time of Since the last crisis during the time of the
taper tantrum, the Indian economy has made significant progress in achieving
macro stability. In November 2013, Consumer Price Inflation was 11.5% vs. 2.57%
now. The credit for lower inflation belongs to the RBI as well as policies of the central
government. Similarly, current account deficit was 5.1% of GDP in Oct-Dec 2012 vs.
2.33% of GDP in the last quarter. Fiscal deficit which was 4.6% of GDP in FY2013-14
has been reduced to 3.4% of GDP in FY2018-19.
The government has carried out a number of structural reforms including the
Insolvency and Bankruptcy code (IBC), implementation of the Goods and Services
Tax (GST), Real Estate (Regulation and Development) Act leading to establishment
of Real Estate Regulatory Authority (RERA) in states. Setting up of an inflation
targeting regime and formation of the Monetary Policy Committee or MPC deserve
notable mention as well.
Lastly, the problem of stressed assets has been tackled through the IBC and with
recapitalization of state owned banks; the banking sector is now in a position to
support growth.
As a result of the reforms, as well as corporate deleveraging, growth, especially
growth of corporate earnings has been sub-par. However, these reforms should
help in improving long term prospects of the Indian economy.
Indeed despite the current slowdown, we believe that underlying growth prospects
are improving. More importantly, capex is leading growth, and this should boost
corporate earnings. This should be supportive of markets over FY2019-20.

6 ELECTIONS - MAY 2019

INDIA’S VALUATION
PREMIUMS MAY PERSIST
India has historically traded at a premium, which persists now.
If we compare India’s premium to other emerging markets and Asia Pacific ex Japan,
the premium is now lower than historical average, this should recover as political
stability and resilient economy should help.

Exhibit: India’s relative valuation compared to EM

2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
Oct-09

Oct-14
Dec-08

Nov-11

Dec-13

Nov-16

Dec-18
Jan-11
Jun-11

Jan-16
Jun-16
May-09

May-14

May-19
Jul-08

Jul-13

Jul-18
Feb-08

Mar-10

Feb-13

Mar-15

Feb-18
Apr-07

Apr-12

Apr-17
Sep-07

Aug-10

Sep-12

Aug-15

Sep-17
India relative to EM Average
Source: Bloomberg, Karvy Research

Exhibit: India’s relative valuation to Asia Pacific ex Japan

2.2
2.0
1.8
1.6
1.4
1.2
1.0
0.8
May-11

May-16
Jul-10

Jul-15
Mar-07

Feb-10

Mar-12

Feb-15

Mar-17
Apr-09

Oct-11

Apr-14

Oct-16

Apr-19
Aug-07

Nov-08

Sep-09

Dec-10

Aug-12

Nov-13

Sep-14

Dec-15

Aug-17

Nov-18
Jan-08
Jun-08

Jan-13
Jun-13

Jan-18
Jun-18

India relative to AP x JP Average

Source: Bloomberg, Karvy Research

As corporate earnings pick up, Indian ROE is likely to rise, which may lead to a
persistence of the premium.

ELECTIONS - MAY 2019 7

 SECTOR PREFERENCES
Interest rate sensitive sectors are likely to do well, not only from a policy perspective,
but from an economic standpoint. The economy has been driven by personal
consumption, but the drivers for growth are changing. Capacity utilization remains
low at 75.9%, but has been rising. The rate of growth in fixed capital formation
remains strong at 10.6% for Q3FY2018-19 though this may slowdown for a couple
of quarters due to the liquidity crunch as well as companies being in wait and watch
mode ahead of the elections. Capex spending should rise, leading to a pickup in the
economy. Thus cyclical sectors like Capital goods, real estate, cement should gain.
We also expect credit demand to remain high, and along with the NPA issues having
peaked, banks should gain.
Also the conditions for mid and small caps to outperform are broadly in place. The
first is that markets should be in a risk on mode, and secondly that valuations should
be favorable compared to large caps. The markets should enter risk on mode later
this year, and valuations have become favorable.

REFORMS: CAN THEY ACCELERATE AFTER

ELECTIONS
The electoral cycle
1. In general, a government early on its term will take some time to understand
the economic situation, governance structure, and will take some time to plan,
consult stakeholders and build consensus. After this initial period (1 year), it
should be ready to carry out major initiatives.
2. While major reforms can generate growth, it happens with a lag. The initial
period after a reform leads to a churn where the economy or parts of it may be
negatively impacted. Over a period of time, the negatives fade away and the
positives kick in. The government has an incentive to carry out reforms early
in its term so that by the time of the next election, the economy experiences
positive impact. Later on in the final years of its term, the government would
be in an election (read populist) mode and would prefer initiatives which make
it popular among the electorate.
3. Later on the term, the government would be in an election (read populist
mode) and would prefer initiatives which make it popular among the electoral.
Any economic reforms, which may be unpopular would be avoided. The
government would be entering the election mode a couple of years before
the next round of elections are due
If an incumbent government is re-elected, it can hit the ground running and start
reforms very early in its term. Thus, we can expect a heavier reform agenda, with
the incumbent coming back to power.
Election Cycle

1 2-3 Economic
Reforms &
4-5 Govt. gets into
st nd rd th th

Year
Planning Year Initiative Year Election Mode

8 ELECTIONS - MAY 2019

 REFORM SCORECARD
Before moving on to reforms, we note that during the “taper tantrum” of 2013,
India was infamously dubbed as a part of “Fragile Five” on account of vulnerabilities
due to high fiscal deficit, high current account deficit and high inflation. Since
then, fiscal deficit at the central government level declined from 4.5% to 3.5%.The
consolidated (states + central) fiscal deficit of 7%indicates that fiscal consolidation
has further to go. Similarly, the current account deficit has declined substantially
from 5.08% September- December Quarter 2012 to 2.4% of GDP in the April- June
2018 on account of higher level of crude prices and rising non oil imports (especially
of electronics and capital goods). Consensus projects this number to rise to 2.7%
for the current fiscal year, which is manageable. Similarly, CPI which averaged 8% in
FY2013 has averaged 4.2% in FY2018-19. This indicates that India has made progress
in achieving macroeconomic stability.

Over the last four and a half years, the government has carried out a number of
reforms; we highlight the major ones below:
Firstly, Insolvency and Bankruptcy code or IBC, which received legislative approval
in May 2016. The act was in response to the stress in the banking system. We
believe that the act is currently passing through its initial hiccups with insolvency
professionals and courts going through the learning curve, as well as legal
precedents being established. However, the effectiveness of the new system
cannot be denied in dealing with non-performing loans, this new system will also
help in prevention of NPL buildup in the future. As a result of this reform, India’s
ranking on “resolving bankruptcy” part of “Ease of Doing Business” survey of the
World Bank has improved from 136 to 107 in the most recent survey.
Implementation of the Good and Services Tax is another long pending reform. While
the reforms were initially proposed by the Vijay Kelkar Committee in 2004, the
reform was not implemented on account of various reasons, including- failure to
arrive at a consensus between the states and centre, complexity of the reform. GST
was finally implemented on July 1, 2017. While initial implementation hiccups remain,
and firms complain of issues liking difficulty in filing, delay in refunds, indicating that
GST is still a work in progress, the gravity of the move cannot be denied. It will be a
while before the positives kick in, and impact on public finances can be felt. Other
countries where GST was implemented (usually called VAT) experienced a rise in
inflation in the initial period of implementation, which has not been the case in India,
which should be seen as a good sign.
Ujwal DISCOM Assurance Yojana (UDAY) was formulated to improve the
performance of State Discoms by energy efficiency and financial restructuring.
Over the years, states have progressed on energy efficiency metrics such as 1)
100% metering has been achieved at Feeder level on all India basis 2) 60%-63%
metering has been achieved at Distributor-Transformer (DT) level and 3) 88% of Un-
connected households are provided with electricity access. On Financial metrics 1)
states have issued Rs. 2.32 lakh crore of bonds and Rs. 2.69 lakh crore of bonds are
yet to be issued 2) Aggregate AT&C losses have come down to 22.65% 3) ACS-ARR
gap has been reduced to Rs. 0.32/Unit with 25 states opting for tariff revision.

ELECTIONS - MAY 2019 9

 Overall, further progress in ACS-ACR gap reduction and AT&C losses reduction are
critical for UDAY’s success and pace has to pickup in future. Nevertheless, UDAY
when fully implemented could push debt burden of states (UDAY bonds could be
~12% of total outstanding liabilities) by 3% of SGDP.
Divestment has picked up. Though there have been a few disappointments like the
aborted bid for privatization of Air India. Funds raised via divestment total Rs. 2.09
Tn compared to Rs. 990 Bn by UPA-II. The lack of a major privatization programme
(where government shareholding drops below 51%) is something we would like to
see a change in from the incumbent government.
Lastly, Demonetization remains a controversial step, as with many initiatives, there
was a short term negative impact. However, the long term impact of the move is
yet to be established.

The unfinished agenda

We believe the following are steps over the term of NDA’s 2014-2019 tenure
constitute the “unfinished agenda” and will inch closer to completion as the NDA
government has been re-elected.
Land reforms: While the old British era Land Acquisition Act had many flaws, the
new Land Acquisition Act of 2013 has been criticised for many provisions in the
act, which slowdown the process of land acquisition. NDA made an attempt early
in its term (2014-2015) to make amendments to the act to rectify the shortcomings
of the act; however, it had to abandon this on account of its lack of majority in the
Rajya Sabha. Attempts which may be revived now.
Labour laws: India’s labour laws are among the most restrictive and are often cited
as an impediment to industrialization. This is quite critical for the future as growth in
labour intensive manufacturing is important to move employment from agriculture
to manufacturing and services. While a few minor steps have been taken like fixed
term contracts, allowing states to make amendments, reducing bureaucracy like
type of labour inspections, much remains to be done. Re-election of the NDA is
likely to ignite hopes on this front.
Agriculture reforms: While this is largely within the domain of states, the central
government can play an important role by incentivizing reforms. The government
has enacted model Agriculture Produce and Livestock Marketing (APLM) Act in 2017,
which can be implemented by states, but it is a work in progress. It also rolled out
National Agriculture Market which is designed to connect all agricultural markets in
India to allow inter-state trading. The aim is to allow farmers to sell directly without
intermediaries, thus getting them better prices. Also investment in cold chain,
subsidy reform would help the state of agriculture in India.

10 ELECTIONS - MAY 2019

 INFRASTRUCTURE
Despite fiscal pressures, the government has increased spending on infrastructure,
which expanded from INR 1.9 Tn to INR 2.8 Tn in FY17. There are a number of initiatives
under progress, for instance “Bharatmala” is a centrally-sponsored and funded road
and highways project with a total investment for 83,677 km at an estimated cost of
INR 6.9 Tn. Similarly, Sagarmala is a project to improve the logistics sector using
potential of waterways and coastline, with an investment of INR 8.5 Tn for setting up
of new mega ports, modernization of India’s existing ports, etc.

Exhibit: Capex by Central government (Rs. 2.8 Trillion

3

2.80
2.68
2

1.97
1.88
1.67
1.59
1.57
1

1.22
0.38

1.19
0.29

1.13
0.90

0.79

0.78
0.61

0.59

0.64
0
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Total Capital Expenditure Infra Spending By Government
Source: Bloomberg, Karvy Research

In conclusion, we believe that the market can continue to perform well over the
next couple of years; we expect that Nifty should end the year 2019 in the range of
13,000 to 15,000.

ELECTIONS - MAY 2019 11

SECTOR
OUTLOOK
AGRICULTURE
India’s economic growth in financial year 2018 is expected to accelerate to 6.75% on
improved performance in both industry and services. India is the world’s 6th largest
economy by nominal GDP and the 3rd largest by purchasing power parity (PPP). The
sector is likely to grow at a rate of ~2% on a YoY basis.
In 2018-19, Government of India is targeting food grain production of 285 MnT. As
of September 2018, total area sown with kharif crops in India reached 105.78 Mn
Ha. Total agricultural exports from India grew at a CAGR of 16.45% over FY10-18 to
reach US$ 38 Bn in FY18. Between Apr 2018-Feb 2019 agriculture exports were US$
34 Bn.
According to the Department for Promotion of Industry and Internal Trade (DPIIT),
the Indian food processing industry has cumulatively attracted Foreign Direct
Investment (FDI) equity inflow of about US$ 8.57 Bn between April 2000 and
December 2018.

Some major investments and developments in agriculture are as

follows:
yy Investments worth Rs. 8,500 Cr (US$ 1.19 Bn) have been announced in India for
ethanol production.
yy The first mega food park in Rajasthan was inaugurated in March 2018.
yy Agrifood start-ups in India received funding of US$ 1.66 Bn between FY13-17 in
558 deals.
yy In 2017, agriculture sector in India witnessed 18 M&A deals worth US$ 251 Mn.
yy Sugar production in India has reached 27.35 MnT in 2018-19 sugar seasons, as of
March 15 2019, according to the Indian Sugar Mills Association (ISMA).
yy The Electronic National Agriculture Market (eNAM) was launched in April 2016
to create a unified national market for agricultural commodities by networking
existing APMCs. Up to May 2018, 9.87 Mn farmers, 109,725 traders were
registered on the e-NAM platform. 585 mandis in India have been linked while
415 additional mandis will be linked in 2018-19 and 2019-20.
yy Agriculture storage capacity in India increased at 4% CAGR between FY14-17 to
reach 131.8 Mn MT.
yy Coffee exports reached record 395,000 Tons in 2017-18.
yy Between FY14-18, 10,000 clusters were approved under the Paramparagat Krishi
Vikas Yojana (PKVY).
yy Between 2014-15 and 2017-18 (up to December 2017), capacity of 2.3 Mn MT was
added in godowns while steel silos with a capacity of 625,000 were also created
during the same period.

12 ELECTIONS - MAY 2019

 yy Around 100 Mn Soil Health Cards (SHCs) have been distributed in the country
during 2015-17 and a soil health mobile app has been launched to help Indian
farmers.

Way Ahead:
India is expected to achieve the ambitious goal of doubling farm income by 2022.
The agriculture sector in India is expected to generate better momentum in the
next few years due to increased investments in agricultural infrastructure such as
irrigation facilities, warehousing and cold storage. Furthermore, the growing use
of genetically modified crops will likely improve the yield for Indian farmers. India is
expected to be self-sufficient in pulses in the coming few years due to concerted
efforts of scientists to get early-maturing varieties of pulses and the increase in
minimum support price.
The government of India targets to increase the average income of a farmer
household at current prices to Rs. 219,724 by 2022-23 from Rs. 96,703 in 2015-16.
Going forward, the adoption of food safety and quality assurance mechanisms
such as Total Quality Management (TQM) including ISO 9000, ISO 22000, Hazard
Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP)
and Good Hygienic Practices (GHP) by the food processing industry will offer
several benefits.
The social aspects around agriculture have also been witnessing changing trends.
The increased feminization of agriculture is mainly due to increasing rural-urban
migration by men, rise of women-headed households and growth in the production
of cash crops which are labour intensive in nature. India also needs to improve
its management of agricultural practices on multiple fronts. Improvements in
agriculture performance has weak linkage in improving nutrition, the agriculture
sector can still improve through multiple ways: increasing incomes of farming
households, diversifying production of crops, empowering women, strengthening
agricultural diversity and productivity, and designing careful price and subsidy
policies that should encourage the production and consumption of nutrient rich
crops. Diversification of agricultural livelihoods through agri-allied sectors such
as animal husbandry, forestry and fisheries has enhanced livelihood opportunities,
strengthened resilience and led to considerable increase in labour force participation
in the sector.
We believe in the agri sector, PL, Rallis India, Avanti Feeds, Apex Frozen, KRBL, Jain
Irrigation will be the stocks to watch out for.
References: Agricultural and Processed Food Products Export Development Authority (APEDA), Department of Commerce and Industry,
Union Budget 2018–19, Press Information Bureau, Ministry of Statistics and Programme Implementation, Press Releases, Media Reports,
Ministry of Agriculture and Farmers Welfare, Crisil

ELECTIONS - MAY 2019 13

 AUTOMOBILES
Until now, uncertainty ahead of elections, higher insurance costs and liquidity
tightening in the market have been major concerns regarding the muted growth of
vehicle sales. With the election of a stable government, increase in infrastructure
projects such as tolls and flyovers is expected to improve automobile demand
especially for commercial vehicles. We also expect the liquidity situation to stabilize
which might help improve vehicle sales. Furthermore, we also expect increased
emphasis for electric vehicles which could be a game changer for the automobile
and the ancillary industry. In order to be able to promote electric vehicles effectively,
the government is likely to introduce special schemes and incentives for the same.
Also, better agricultural reforms should help improve tractor sales and also improve
spending in the rural economy.
However, in addition to elections, new emission norms also are likely to impact the
automobile industry dynamics.

Exhibit: Automobile Growth Trend

30%

20%

10%

0%
FY15 FY16 FY17 FY18 FY19

-10% PV CV 3W 2W
Source: Bloomberg, Karvy Research

CAPITAL GOODS
The Modi government’s focus on power sector led to a significant improvement in
energy deficit situation during its four years of tenure. India’s energy deficit, which
remained range bound between 8% and 10% between during 2011-13, improved in
FY14 to 4-4.5%, and subsequently contracted to 0.7% in FY17 and FY18.
The improvement could be attributed to rapid addition in thermal and non
conventional sources of capacity in the private sector, which led to increase in
electricity production. Also it indicates improvement in electricity evacuation and
power distribution infrastructure.
A world leader in renewable energy: The Narendra Modi government in India has
set an ambitious goal of reaching 175GW of clean energy generation by March
2022. Research shows that in June 2018, renewables accounted for 71GW of
India’s installed generating capacity. India’s renewables auctioned capacity has
also increased by 68% since 2017, and clean energy investments, mostly related

14 ELECTIONS - MAY 2019

 to solar power projects, added up to $7.4 billion in the first half of 2018. Renewable
energy installations surpassed those by coal power plants for the first time in 2017
and followed up in 2018.
We believe BJP 2.0 would be majorly focusing on completing the flagship projects
like Pradhan Mantri Gram Awas Yojana. Power for All, UDAY scheme, renewable
target of 175GW and on T&D sector for easy evacuation and distribution of power.
The market is viewing the ongoing recovery in investment cycle with high optimism.
With the crucial state elections and general elections just over there is a possibility
of awarding contracts as the government will be out of model code of conduct.
From our coverage, we believe the players like KEC, Kalpataru and Bajaj Electricals
are expected to immensely benefit through ruling party coming back to power. With
modi govt. the current flagship programmes like Saubhagya Scheme, Power for all
will boost the order flows in the market.

CEMENT
The domestic cement demand is likely to grow by 8% this fiscal which may push the
capacity utilization to 71% from 65% in FY18. The growth in demand will be driven
by likely 18-20 million tonnes per annum (MTPA) of additional production capacity
during the fiscal. The domestic cement production rose by around 13% between
April 2018 and February 2019 as compared to 6% YoY growth in FY18. For FY20, we
expect a demand growth of around 8%.
Cement manufacturers are poised to benefit from the continuing demand push, led
by the healthy growth expected across end-markets such as individual home building
and irrigation sectors with the thrust on Infrastructure by the central government
and various state governments. We expect the momentum to continue in FY20;
propelled by government-led spends in roads and affordable housing schemes.
Capacity utilizations are likely to rise but not to the extent that producers would
see any increase in pricing power, but due to various capacity additions. However,
cost pressures would reduce because of stabilizations in input costs, and with cost-
saving measures which could lead to a modest improvement in margins in FY20.

CONSUMER DISCRETIONARY
Companies focused on Urban India have managed to grow at double digits in recent
times while the ones focused on rural market have seen sluggish growth. Private
final consumption (PFCE - at current prices) stood at 10.6% over 2017-18 vs. historic
levels of ~ 12% in the three years prior. Extended winter, tight liquidity and the recent
monsoon forecast points to a slow growth in FY20. With India largely being agrarian,
the second term of the current govt. is expected to bring in a slew of initiatives to
ensure that rural to urban growth multiplier is back in the range of 1.5x.
We believe the key areas of focus for the new govt. will be on increasing agricultural
income (govt. targets doubling the same by 2022), and also increase the market
avenues to ensure income support. Additionally, completion and progress in
ELECTIONS - MAY 2019 15
 the irrigation projects would ensure better yield and lower cost for the farmers.
Additionally, the new govt. is expected to get funds from the RBI, which will increase
liquidity and lead to higher consumption in the medium to long term.
Rupee has historically appreciated in the run upto elections and tends to correct
itself post the results. However, the volatility in the rupee is expected to be lower
in the fiscal, which will also help discretionary companies to reduce raw material
costs and thereby pass on the benefits to customers thereby drive volumes in the
segment in the next few months.
Within our consumer discretionary portfolio, Raymond (good brand recall and urban
reach), and Relaxo (volume growth expected along with some margin benefits)
are significant beneficiaries should these stories play out. KPR could be negatively
impacted as a result of appreciation in rupee.

FMCG
Ahead of election result, Indian market posted best opening gain since 2014 Lok
Sabha election as the majority of exit poll predicted BJP-led NDA again coming to
power, which reflects a clear sign of investor confidence for the ruling party when
all three major indices Nifty, Sensex and Banknifty cheered the exit poll by recording
their all time high.
FMCG Sector at a Glance: Fast-moving consumer goods (FMCG) sector is the 4th
largest sector in the Indian economy with Household and Personal Care accounting
for 50% of FMCG sales in India. According to IBEF the Retail market in India is
expected to reach US$ 1.1 Tn by 2020 from US$ 840 Bn in 2017, with modern trade
expected to grow at 20-25% per annum.
Post Election Expectation: India’s Food and Beverages market plays an important
role for the economic growth but is slowing down since last few quarters. There
are so many reasons responsible for this like slackening demand, drop in private
final consumption and low IIP numbers. But if we look at the sector from a long term
point of view it looks pretty much positive for the investor. The ruling government
stated their intentions in budget 2019-20 in favor of farmers and middle class by
providing financial assistance and tax rebate which will amplify the demand for
branded products.
Government’s digital expansion also expected to play a key role in boosting the
demand for consumer goods. The launch of 4G network has promoted digital
India initiative on a large scale. According to IBEF, the Indian e-commerce market
is expected to grow to US$ 200 Bn by 2026 from US$ 38.5 Bn as of 2017 driven
by government’s spending on digital infrastructure. For that it will make one lakh
villages into Digital Villages by 2024 which should lead to a better supply chain
management benefiting food and food processing industry. Market research firm
Nielsen India expected FMCG sector to grow at 11-12% in FY19 against 13.8% in 2018
due to subdued demand across rural and urban areas.
High Government Exp. and Tax Exemptions to Boost Demand: As the total
expenditure for 2019-20 is budgeted at Rs. 2,784,200 crore an increase of 13.30%
from 2018-19 and tax exemption with annual income Rs. 5, 00,000, we expect a
higher demand in Indian FMCG sector.
16 ELECTIONS - MAY 2019
 INFRASTRUCTURE
Previous NDA government has outperformed all its predecessors in various metrics
in terms of infrastructure sector performance. It was clearly evident that through
strong policy support, set of reforms, NDA govt. worked on reducing bottlenecks
by pushing growth in the infrastructure sector. We believe, the NDA government’s
focus on improving the infrastructure standards in a proper and adequate manner
has provided many opportunities in the sector for various players. The past 5 years
trend has witnessed high budgetary allocation, rising infrastructure deals and
increasing private sector investments. The push is more evident in road sector.
An aggregate of 53814 kms (NHAI+ MoRTH) of road projects were awarded
during FY14- 9M FY19 and another 20000 kms target is set for FY20. Further to
add, an aggregate of 34257 kms of highways have been built so far in the current
government’s tenure. While the YTD new road project award has been bleak due to
challenges in achieving the Financial Closures for already awarded projects.

Exhibit: Road Orders from NHAI

8000
7000 2014 Elections
2009 Elections
6000
5000
4000

7397
6491
3000

1435
5058
1234

1116

4344

4335
2000
3359

3067
643

2105
FY07 1730

1000
0
FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

*9MFY19
Source: Bloomberg, Karvy Research

With rejuvenated energy, we believe, the authorities would start awarding new
projects from FY20 onwards. This time there is a greater optimism in the street
because
26,000 km of roads have been earmarked under Bharatmala Pariyojana with a cost
outlay of Rs. 6.9 Tn.
For now, construction companies’ revenue are driven by existing order books and
the share prices have cooled off a little due to weak order inflows. However, once
the ordering activity picks up, we believe share prices will make their northward
movement. Fresh orders post-elections will be the next trigger for investors. With
debt-equity around 0.8x, NHAI has cushion for 2-3 years of EPC/HAM ordering by
leveraging its balance sheet, even if budgetary allocation to NHAI remains stagnant.
That said, considering the infra growth centric governments we believe, the sector
would be back on fast track from the second half of FY20 as road capex is one of
the highest in terms of central and state government allocations.
The scenario this time is little different for construction companies as they have
relatively higher order books outstanding and leaner balance sheets and improved
working capital cycles vs. the situation before 2014 elections. Accounting for
these healthier factors coupled with the NDA government’s focus, we believe
infrastructure stocks too will return to the spotlight once the ordering activity picks
up. We are optimistic about companies like KNR Constructions, HG Infra, Ashoka
Buildcon and Timken India.

ELECTIONS - MAY 2019 17

 INSURANCE
Industry Trends:
Gross Direct Premium Income for general insurance sector is growing at 14.47%
with top 10 multi-line insurer covers 78.49% of market share out of 25 and multiline
insurer with consolidated diversified business portfolio will increase the market
share. GI industry is approximately at ~103% of combined ratio and will strive to
reach near ~98% in coming few years on account of consolidation of business lines
with ~18-20% RoE which will enhance industry leverage to increase underwriting
profit and dividend payments on account of release of provisional reserves(~1-2%
of combined ratio).
Life Insurance firms protection share (where growth seems to be structural) is rising
in VNB and has already reached >30% for most players due to high margin nature
and we see margin expansion when premium growth slows down with reduction in
volatility in VNB. Life Insurance sector’s market cap as a % of GDP is 3% in India vs.
4% globally. As a % of banks’ market cap, life insurance sector is at 20% in India vs.
>35% in other countries and we expect listed companies to report EV compounding
of 15%-20% over the next three years with growth of 8-9% in EV annually. Absolute
market cap for life insurance firms in India is at $83 Bn against that of markets of USA,
UK, and China at $915 Bn, $111 Bn and $540 Bn respectively and with most efficient
products world-wide and limited balance sheet risk, India insurance industry is
poised to grow faster.

Insurance sector Outlook:

With the implementation of ‘Prime Minister Shram-Yogi Maandhan’ scheme
as proposed in Feb 2019, 6 lakh organized labour with increment in 4% of PF
contribution will get additional ~Rs. 36 Cr of additional PF contribution for after
retirement pension funds and mobilization of these pensions fund management
will be hedged by non-par annuity policy floated by various private life insurance
players and govt. alike in coming years and will extend the benefits of ~8% interest
income to accumulate the benefits.
Government initiatives to fill 77% of underpenetrated tertiary health insurance gap
with PMJAY has reached 900,000 patients worth Rs.1210 Cr and will extend an
opportunity to Rs. 216 per capita premium for private insurers to capture ~82% of
NCD health insurance which is expected to increase penetration from 34% to 50%
in coming years to reach target of 40% of insured population.
After the liquidity crunch, the industry has seen upward trend and the exit poll result
has improved the market confidence in spite of global woes; In coming 2 years,
higher FDI inflows will increase the share of par life and pension plans as preferred
by policyholders to avail both protection and dividend benefits from company.
Agricultural output improvements in NDA-I with quality seeds and improving
NPK ratio has resulted in higher yield. NDA-II is also expected to pursue spending
especially in micro-irrigation and watershed program to target acreage. The
PMKSY scheme will result in lesser claim loss for the business and will bring higher
participation from crop insurers.

18 ELECTIONS - MAY 2019

 Extension of Bharatmala and Sagarmala Pariyojana in coming term will provide an
opportunity to insure Rs. 535,000 Cr of Public/Product liability projects and create
opportunity to insure $110 Bn of exports via Marine-Cargo by 2025 respectively .

Extension to PMJJBY and PMSBY will benefit the sector on personal accident cover
and the next term can expand the coverage of PMJDY to bring 60 Cr basic accounts
under micro insurance and unorganized sector pension schemes via these accounts.

INFORMATION TECHNOLOGY (IT)

Based on general belief that NDA is a pro-reform and pro-business government,
we expect broader market to react positively in the subsequent months of
announcement of formation of NDA government. While fundamentally speaking, a
formation of stable and pro-reform government should attract more foreign flows
and should result in INR appreciation, it should be negative for IT stocks. However,
historical data suggests that irrespective of the USDINR movement, NSE IT index
followed movement of Sensex. In the six months following NDA’s victory during
2014 election, USDINR depreciated 6% and NSE IT index returned 22% as opposed to
Nifty’s 16% return. Similarly, during 2009 election results, while USDINR appreciated
6% in the 6 months following election results, IT Index returned 7% vs. broader index
which gained 38% during the same period. However, broader market was recovering
from historical lows following great recession.
However, irrespective of the USDINR and index movement, we expect the new
government to continue with its focus on spending on cyber security, data
protection, AI, IoT and smart city related projects and digital India. We see big
opportunity for these new technologies in India, For instance, according to Statista,
AI market is expected to grow to $89.8 Bn globally by 2025. This should benefit
companies like Infy and TCS who are already handling some of the prestigious
projects of government of India.

Exhibit: NSE-IT vs. Sensex during past election results

40%
38.0%
30%

20%
22.0%
16.0% 16.0%
10%

0%
2009 2014
Sensex NSE IT

Source: Bloomberg, Karvy Research

ELECTIONS - MAY 2019 19

 METALS & MINING
During NDA 2.0, we expect there would be consistency in economic reforms policies
which in turn will be incentivizing companies to go for aggressive capex on which they
have been slow due to political uncertainty ahead of elections.
The NDA government has been a great advocator of minimum government and
maximum governance. It has been very aggressive on bringing about structural
changes in the economy to create an enabling economic environment. The government
brought about many policy changes such as National Company Law Tribunal, Goods
and Services Tax, opening of retail, defence and mining sectors, auctioning of mines.
In order to give big push to steel production and consumption, the government came
out with National Steel Policy 2017 which aims at achieving crude steel capacity of
300 mt and increased per capita consumption from existing about 66 kg to 160 kg by
2030-31. The government has come out with policies like priority to domestic steel in
government projects, anti-dumping duty till 2022 and is likely to implement Minimum
Import Price to safeguard the interest of domestic steel manufactures.
However, the process of Insolvency and Bankruptcy Code has been very time
consuming and industry would expect speedy resolution to issues. Although slow in
policy implementations, these measures have helped create enabling environment.
Investors would expect consistency in policies with more proactive approach towards
land and labour reforms and other well thought-out policies backed by suitable
infrastructure before announcing the implementation of the same.
The government’s Make-in-India policy is aimed at making India a manufacturing hub
and provided big push to infrastructure building by introducing projects like Sagarmala,
Bharatmala, Housing for All, affordable housing, building smart cities, dedicated freight
corridor, metro, etc. The government placed thrust on energy through Deen Dayal
Upadhyay Yojana. All these measures helped India emerge as the second largest
producer of steel in the world having left Japan behind. For three consecutive years
India retained the status of net exporter of steel. But with the onset of trade war, trade
diversion started taking place and counties like China, Japan and South Korea started
dumping their steel in India thereby making India net importer in H2FY19. As per March
2019 numbers, steel imports have grown by 4.5% whereas exports have fallen by 16%.
Industry would expect from the new government that it should come out with policies such
as Minimum Import Price to safeguard the interest of domestic steel manufactures. The
government has been very aggressive on capex and it would not be an exaggeration to
state that it was government capex which has been driving the economy. It is because
of General Elections that government spending got slowed down resulting into overall
slowdown in consumption and investment demand. Hopefully, with NDA government
assuming power, both government capex and private capex will scale up the economy
to greater economic heights.
Having said that steel being global commodity, the performance of this sector is also
linked with the performance of global economy. China which accounts for 51% of global
steel production and 75% of Asia’s steel production is one of the largest consumer of
steel. But Chinese economy has been slowing down. It also suffers from glut of steel
since 2014. Trade conflicts with USA have further aggravated the situation. The ongoing
trade conflicts appear to be protracted one which has the potential of engulfing global
economies. The Chinese government has resorted to monetary and fiscal stimulus

20 ELECTIONS - MAY 2019

 to arrest steeper slowdown in the economy. To address the steel glut situation and
emission concerns, the government has announced cutting down capacities.
From the universe of our coverage, we believe that Tata Steel Limited with presence
across entire value chain having self-sufficiency in Iron Ore procurement and about
30% of coking coal procurement from captive mines, is well positioned to enhance
its operating margins amidst rising iron ore and coking coal prices in international
markets. JSW Steel with greater exposure to domestic market and high value products
but with third party reliance on iron ore and overseas reliance on coking coal too may
be able to maintain its margins. As a matter of fact, steeper rise in iron ore prices in
international markets have proved to be a boon in disguise as it has helped domestic
steel manufacturers to beat competition from overseas suppliers.
Strong demand for steel will drive the demand for sponge iron as well benefiting Tata
Sponge Iron Limited on being the largest DRI based sponge iron manufacturers.
Robust demand for steel is likely to trigger the demand for manganese ore as well.
MOIL Limited with the status of largest producer of manganese ore and high grade
Ferro alloys will get benefited from increased demand.
GMDC Limited with the status of one of the largest merchant traders of lignite will get
benefited from off take in cement and energy demand.

OIL & GAS

The election of 2019 looks different from the 2014 elections, BJP had stormed to
power in 2014 in India, this time in 2019 it is playing on the defensive side.
According to infographics the prices of petrol increased by just 90 paisa per year
between 2014-18 in comparison to the whooping Rs. 4 per year in UPA’s 10 years.
According to IOCL, petrol prices witnessed just a 40-55 paise rise since March 10,
2019.
The return of the Narendra Modi-led National Democratic Alliance (NDA) government
and we expect to see policy continuity in India’s oil and gas sector over the coming
years. The government led by Modi had targeted deregulation of domestic oil
and gas and it also had seen partial success, going forward we hope to see more
progress in this area over the coming years as India seeks to attract more foreign
investment needed to push through developments across the industry.
The objectives of Modi’s government is to boost exploration and production,
targeted deregulation of the sector and increase access to and consumption of
clean energy sources such as natural gas and renewables as India strives to cut air
pollution and curb coal use.
Modi’s attempt to boost domestic oil, produce more gas, increase the use of biofuels
and curb energy imports have proved insufficient due to weak investor interest and
supply constraints. Also the government pledged to reduce the import of crude oil
by 10% by 2022 but the dependence has risen to 82% from 77% four years back.
Modi government got lucky as global crude prices stabilized in 2018 after a period
of continuous rise but moving forward as India’s Iran oil waiver by the US is ending
and as Lok Sabha elections are over, oil marketing companies (OMCs) are expected
to significantly increase fuel prices.

ELECTIONS - MAY 2019 21

 Last year, a trend was seen that during the Karnataka & Gujarat polls, petrol and
diesel prices remained unchanged despite rising global crude oil prices but after
polling was over there was hike period, resulting in an overall rise. However, it is
almost certain the Oil Marketing Companies (OMCs) will pass the buck on to
customers as soon as elections are over.
India along with seven other countries will now have to look at alternate countries
to fulfill oil demands as there will be no import from Iran due to US sanction. Trend
watchers from the oil sector say customers may have to deal with a daily hike after
formation of new government.
The government relies on the oil and gas sector as a source of revenue. As oil prices
fell in early 2016, the government imposed taxes on the production of petroleum
products which accounted for about 24% of government revenue for fiscal 2018.
Following the recent increase in oil prices, the government had to cut these taxes
to limit the impact of high prices on consumers in India. We expect the government
is unlikely to raise these taxes close to general elections in 2019 because the taxes
are ultimately passed on to end consumers but moving forward the prices may rise.
Also dividend payments and share buybacks by the oil companies will continue to
be a source of revenue for the government.
Oil companies’ shareholder returns will provide the Government of India with the
cash to meet its fiscal deficit target.
Even with an official opposition in place, it is unlikely that the reforms already
imposed would be reversed. It could, however, lead to more prolonged discussions
on reconciling India’s clean energy commitments with economic growth priorities
and appetite for coal to meet energy demand.

PHARMA
The Pharma industry has been plagued by headwinds in the last few years mainly
on account of government policy, directives in domestic formulations industry,
consolidation and regulatory overhang in the US markets.
Domestic formulations industry had taken a hit during the demonetization period as
well as the GST period where sales had shrunk. Sales collapsed post demonetization
while lower inventory in the system is the new norm of the industry. This has
impacted primary sales of the companies. A lot of Indian companies are increasing
the hygiene element and removing bonus so as to enhance the profitability of this
business.
In the US market, there had been consolidation of distributors which led to aggressive
price reduction on entire portfolios of generic companies. This forced many of
the big generic companies to withdraw products as it became unremunerative to
manufacture these products. The tide has ebbed now with single digit price erosion
coming back. Earlier the market scenario on pricing was product specific, driven by
competitive dynamics in the market. Due to withdrawal of many products, sanity is
returning on the pricing front.
In the last couple of years, the regulatory overhang has had an impact on the
approvals of the companies selling products in the US markets. Majority of the

22 ELECTIONS - MAY 2019

 Indian companies either received warning letter or import alert. This impacted the
approval process and scale up in US markets. Classic case has been Sun Pharma, Dr
Reddys Lab, Ipca Labs and Indoco Remedies.
Focus on other markets: Indian Pharma companies have started focusing on
emerging markets to derisk their revenues. Europe, CIS, South Africa, China, Brazil
and some other Asian markets are being tapped to increase the company’s revenue
base.
The next vehicle for revenue growth is expected to be Biosimilars in regulated
markets of US, Europe and semi regulated markets of Asia. Dr Reddys, Cadila and
Lupin have taken initiatives and would be able to scale revenues in the next phase
of growth. Specialty is another area of focus for some of the major companies like
Sun Pharma, Lupin and Dr Reddys. This will enable sustainable revenue traction with
improved profitability.
With the domestic industry getting push from Jan Aushadhi scheme and more
than 600 million people expected to be covered by health insurance by 2020,
the domestic industry should grow in double digits. With Biosimilars and specialty
emerging as the new growth engines, the longer term revenue growth for regulated
markets appears secure.

REAL ESTATE
Last 5 years have witnessed a plethora of reforms implemented by the government
especially in the real estate sector. Over the years, the Indian real estate sector has
suffered from a “trust deficit” between buyers and developers. Without a regulator,
malpractice by a few unscrupulous developers created a bad name for the industry.
Buyers also preferred completed or close to completion properties, keeping in mind
delays due to a lack of intent from developers or the government or both, resulting
in lower than potential demand.
However, implementation of the Real Estate (Regulation and Development)
Act (RERA) has removed inefficiencies from the system and has ensured timely
completion of developments, adding to buyers’ confidence. As of Dec-2018, 34000
projects have been registered under RERA.
The residential market was going through a dull phase till 2017 due to implementation
of RERA and GST. These initiatives resulted in a decline in residential sales & launches
across cities. The positive impact of these policy initiatives was seen in 2018 with
new launches and sales increasing 15% & 13% respectively.
The push given to affordable housing has been another key highlight of the present
government. Immediately after assuming charge, the government laid out a target
to provide a pucca house for every family by the time the nation completes 75 years
of independence.
To boost affordable housing and achieve the vision of Housing for All by 2022, the
government has undertaken several initiatives, such as Pradhan Mantri Awas Yojana
(PMAY) that aims to build 2 crore homes in urban and rural India by 2022 through
financial assistance by central government.

ELECTIONS - MAY 2019 23

 The financial assistance in the form of interest subsidy on home loan for affordable
housing is being provided through the Credit Linked Subsidy Scheme (CLSS). The
scheme was launched in 2016 and was extended twice till 2019. In the recent Budget,
the scheme was extended till 2020 which would drive the demand for affordable
housing in the near future.
As the industry started recovering on the back of trust brought in by RERA, push
for affordable housing, stable prices and low GST rates, a liquidity crisis in NBFCs
resulted in fund crunch for developer community. However, the government and
RBI have been proactive in addressing the liquidity crisis.
The government’s reforms have resulted in consolidation in real estate industry
wherein reputed players backed by execution track record stand to gain market
share from unorganized players. The current liquidity crisis will strengthen the
position of large developers having minimal dependency on external funding for
project completion.
Our interaction with the management of various listed companies suggests that
there are many opportunities to make distress purchase of land emerging from
current situation. If need be, developers having strong balance sheets can use
leverage and make acquisitions which would fuel the future growth of business.
As the incumbent government assumes charge for the second time, we expect it to
continue its policy measures towards achieving the mission laid out under Housing
for All. The RBI has been fairly successful in maintaining low level of inflation which
has resulted in improving affordability for home buyers. We expect the new
government to maintain fiscal discipline and make room for additional rate cuts
which would further improve the demand in the sector.

24 ELECTIONS - MAY 2019

Disclaimer
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