NiveshDaily. From Research Desk. Economy Updates. Concall Updates. Result Preview

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1 NiveshDaily February 9, 2016 Daljeet S. Kohli Head of Research Tel: From Research Desk Economy Updates Economy grew at a healthy pace of 7.3%in Q3FY16; however, this is mystifying as it doesn t match with many other economic indicators Concall Updates Bajaj Auto Ltd Result Preview Nitin Spinners Ltd Rating: BUY Target: Rs 112 Allahabad Bank Rating: HOLD Target: Rs 88 Punjab National Bank Rating: HOLD Target: Rs 130 GAIL Rating: HOLD Target: Rs 363 Ashiana Housing Rating: BUY Target: Rs 290 Nesco Limited Rating: BUY Target: Rs 1,896 Dr Reddy s Lab Rating: HOLD Target: Rs 3,337 Aurobindo Pharma Rating: BUY Target: Rs 995 Jubilant Life Sciences Ltd Rating: BUY Target: Rs 494 Result Update Ipca Laboratories First Cut Analysis Atul Auto Ltd. Monthly Auto Numbers January 2016 IndiaNivesh Universe Valuation Sheet IndiaNivesh Research IndiaNivesh Securities Limited Research Analyst SEBI Registration No. INH & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai Tel: (022) IndiaNivesh Research is also available on Bloomberg INNS, Thomson First Call, Reuters and Factiva INDNIV.

2 Daljeet S. Kohli Head of Research Tel: Kaushal Patel Research Associate Tel: Economy Updates Economy grew at a healthy pace of 7.3%in Q3FY16;however, this is mystifying as it doesn t match with many other economic indicators Growth Rates at Constant Prices (at prices) GDP GVA Q3FY Q3FY Source: MOSPI; IndiaNivesh Research The Indian economy expanded by 7.3% in Q3FY16which was higher than6.6% growth in Q3FY15. This GDP growth was slightly ahead of market estimates of 7.1%. However, Gross Value Added (GVA) reported slower growth of 7.1% in Q3FY16as compared to6.7% in Q3FY15. This GVA growth was in line with market expectations of 7.1%. Growth Rates at Current Prices (at prices) GDP GVA Q3FY Q3FY Source: MOSPI; IndiaNivesh Research The growth in current prices was higher than the growth in constant prices due to inflation. In Q3FY16, nominal GDP growth stood at 9.2%which was higher than8.1% in Q3FY15. Growth Rates of GDP Constant Prices e ( ) Currenct Prices FY16E Q1FY Q2FY Q3FY Source: MOSPI; IndiaNivesh GDP forecast for FY16E was revised upwards to 7.6% from 7.2% estimated earlier on improved performance in manufacturing and farm sectors. At 7.6%, India would be growing at the fastest pace in the last five years. The previous high was recorded at 8.9% in FY11. The gross value added (GVA) for FY16 was seen at 7.3% as compared to 7.1% in FY15. Estimates of GVA by Economic Activity Agriculture and allied activities which has been affected by two consecutive drought years registered a negative growth of ( )1.0% as compared to2.0% growth in Q2FY16 and negative growth of ( )1.4% in Q3FY15.The crops including fruits and vegetables account for about 61.0% of GDP in agriculture, forestry and fishing sector. The remaining of this sector is based on the livestock products, forestry and fisheries, which is expected to register a combined growth of above 5.0% in FY16E. Manufacturing sector registered healthy growth of12.6% as compared to9.0% in Q2FY16 and 1.7% in Q3FY15. GVA from quasi corporate and unorganized segment (which has a share of around 25% in the manufacturing sector) has been estimated using IIP. However, IIP for manufacturing sector registered a growth rate of 3.9% during 9MFY16. Mining and quarrying sector reported 6.5% growth as compared to 5.0% in Q2FY16 and 9.1% in Q3FY15. Under services sector, Trade, hotels, transport and communication services registered growth of 10.1% as compared to 8.1% in Q2FY16 and 6.2% in Q3FY15. Meanwhile, financial, insurance, real estate & professional services grew 9.9% as compared to 11.6% in Q2FY16 and 10.2% in Q3FY15.

3 Gross Fixed capital formation (GFCF), a barometer for investments, continued to be lower at 31.6% (at constant prices of FY12) of GDP against 32.3% inq3fy15.the GFCF is expected to register growth rate of 5.3% at constant prices in FY16E. According the Central Statistics Office (CSO), the Gross Domestic Product (GDP) or economic growth was estimated at 7.3% in Q3FY16 as compared to 7.4% in Q2FY16 and 6.6% in Q3FY15. All components of the GDP, except agriculture, registered an increase during Q3FY16. India's Q3FY16 growth was faster than the 6.8% growth posted by China in the same quarter.as a result, India became the fastest growing major economy in the world theoretically. The GDP growth in nominal terms was at 9.2% in Q3FY16 while it was at 6.4% in Q2FY16 due to higher deflation and 8.7% in Q1FY16. GDP forecast for FY16E has been revised to 7.6% from 7.2% estimated earlier on improved performance in manufacturing and farm sectors. The gross value added (GVA) for FY16E is estimated at 7.3% as compared to 7.1% in FY15. In addition, CSO also revised the GDP growth estimates for Q1FY16 and Q2FY16 upwardsto 7.6% and 7.7% from earlier calculation of 7.0% and 7.4%, respectively. So, the first quarter growth saw a substantial upward revision of 60 bps. Our Take: The growth in Q3FY16was mainly fuelled by double digit growth in manufacturing sector (+12.6%). It was the highest in the last 11 quarters. It is expected to grow at 9.5% in FY16 as compared to 5.5% of growth in FY15. There is no doubt that the economy is recovering but it s hard to be definitive about the strength and breadth of the recovery. The situation on the ground doesn t quite mirror the growth described by the new estimates. It also doesn t match with other major economic indicators like auto sales, rail freight, PMI, IIP, unutilised capacities of factories, weak exports, low credit growth and tepid increase in corporate revenues. Therefore, this GDP number data looks difficult to correlate with other economic indicators as large parts of the economy have actually not started showing momentum. So, the doubt over the new numbers is unlikely to come to an end. Overall, this is mystifying. We believe that the government should stay away from the temptation to celebrate India s economic success based on this GDP data as there has been big question mark on the credibility of these numbers. We believe that the economy is still a couple of quarters away from meaningful recovery. GDP numbers are unlikely to influence the market or RBI s future rate cut stance. Industry Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Agriculture, forestry & fishing Mining & quarrying Manufacturing Electricity, gas,water supply& other utility services Construction Trade, hotels, transport, communication and broadcasting Financial, real estate & professional services Public administration, defence and Other Services GVA at Basic Price Source: MOSPI; IndiaNivesh; % CHANGE OVER PREVIOUS YEAR QUARTERLY ESTIMATE OF GVA AT BASIC PRICES (at prices) FY14 FY15 FY16

4 9M ESTIMATE OF GVA AT BASIC PRICES (at prices) Rs Bn in terms of % Industry FY14 FY15 FY16 FY14 FY15 FY16 Agriculture, forestry & fishing 11,671 11,704 11, Mining & quarrying 1,910 2,122 2, Manufacturing 11,587 12,181 13, Electricity, gas,water supply& other utility services 1,501 1,640 1, Construction 6,053 6,359 6, Trade, hotels, transport, communication and broadcasting 12,216 13,271 14, Financial, real estate & professional services 14,115 15,679 17, Public administration, defence and Other Services 8,225 9,293 9, GVA at Basic Price 67,278 72,249 77, Source: MOSPI; IndiaNivesh; % CHANGE OVER PREVIOUS YEAR Quarterly Estimates of Expenditures of GDP (at prices) FY14 FY15 FY16 Industry Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1. Private Final Consumption Expenditure (PFCE) Government Final Consumption Expenditure Gross Fixed Capital Formation (GFCF) Change in Stocks Valuables Exports Less Imports Discrepancies GDP at market prices Source: MOSPI; IndiaNivesh; RATES of GDP AT MARKET PRICES (%) 9M Estimates of Expenditures of GDP (at prices) Rs Bn in terms of % Industry FY14 FY15 FY16 FY14 FY15 FY16 1. Private Final Consumption Expenditure (PFCE) 40,753 43,247 45, Government Final Consumption Expenditure 7,461 8,788 9, Gross Fixed Capital Formation (GFCF) 23,931 25,049 26, Change in Stocks 1,188 1,425 1, Valuables 1,085 1,182 1, Exports 17,994 18,832 17, Less Imports 19,630 20,252 18, Discrepancies GDP at market prices 72,245 77,619 83, Source: MOSPI; IndiaNivesh; RATES of GDP AT MARKET PRICES (%) Growth in Agriculture, forestry & fishing Growth in Mining & quarrying Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q FY14 FY FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY14 FY15 FY16 Agriculture, forestry & fishing Mining & quarrying Source: MOSPI; IndiaNivesh Research Source: MOSPI; IndiaNivesh Research

5 Growth in Manufacturing Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY14 FY15 FY16 Manufacturing Growth in Electricity, gas, water supply & other utility services Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 7.5 FY14 FY15 FY16 Electricity, gas,water supply& other utility services 6.0 Source: MOSPI; IndiaNivesh Research Source: MOSPI; IndiaNivesh Research Growth in Construction Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY14 FY15 FY16 Construction 4.0 Growth in Trade, hotels, transport, communication and services related to broadcasting Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY14 FY15 FY16 Trade, hotels, transport, communication and broadcasting Source: MOSPI; IndiaNivesh Research Source: MOSPI; IndiaNivesh Research Growth in Financial, real estate & professional services Growth in Public administration, defence and Other Services Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY14 FY15 FY16 FY14 FY15 FY16 Financial, real estate & professional services Public administration, defence and Other Services Source: MOSPI; IndiaNivesh Research Source: MOSPI; IndiaNivesh Research

6 Bajaj Auto Ltd. Numbers above our estimates, Maintain BUY with target price of Rs.2,820 Q3FY16 Concall Update February 8, 2016 Current CMP : Rs.2,353 Rating : BUY Target : Rs.2,820 Previous Rating : BUY Target : Rs.2,820 STOCK INFO BSE NSE BAJAJ AUTO Bloomberg BAJA.BO Reuters BJAUT IN Sector Auto: 2/3 Wheelers Face Value (Re) 10 Equity Capital (Rs Mn) 2894 Mkt Cap (Rs Mn) 668,452 52w H/L (Rs) 2655/1914 Avg Daily Vol (Bse+Nse) SHAREHOLDING PATTERN % (as on Dec. 2015) Institutions Others, Incl Public Promoters Source: BSE STOCK PER. (%) 1m 3m 12m BAJAJ AUTO 7.2% 5.7% 3% SENSEX 5.0% 8.3% 16% Source: Capitaline, IndiaNivesh Research BAJAJ AUTO v/s SENSEX Bajaj Auto Sensex Source: Capitaline, IndiaNivesh Research Bajaj Auto Q3FY16 EBITDA and PAT were above our estimates. EBITDA was higher than our estimates on account of lower than expected other expenses (actual Rs mn vs our expectation of Rs mn) and lower than expected employee expenses (actual Rs.2302 mn vs our expectation of Rs mn). PAT was higher than our estimates due to higher than expected other income (actual Rs mn vs our expectation of Rs. 823 mn) due to profit on redemption of fixed maturity instruments. Revenue stood at Rs bn (down 1% YoY), in line with our expectation of Rs bn. EBITDA margin was down 64bps YOY to 21% due to higher other and employee expenses partially offset by lower raw material prices. Concall Update The company maintains it will be able to increase its market share to 22% in motorcycle segment by end of March from current 18 19%. This will be on back of increase in Avenger sales as the company plans to sell close to units of Avenger in Q4FY16 compared to close to units in Q3FY16 With the launch of CT100B and expected launch of V in March, the company expects to increase the motorcycle sales to in Q1FY17 from close to in Q3FY16 out of which would come from M1 segment (Platina,CT100,CT100B), from M3 (Avenger, Pulsar) and from V and M2 (Discover) segment Spare parts sales grew 11% YoY to Rs 6.7 bn for the quarter The company expects that close to new 3 wheeler permits will be issued in FY17. With India changing its accounting standards from GAAP to Ind AS from April 2016, company expects other income to increase because of accrual accounting of gains on fixed maturity plan (FMP) along with MTM losses/gain going to OCI (Other comprehensive Income) instead of P&L. The company has close to Rs 65 bn in FMP and 8% of interest will be realized in P&L each year as part of other income from next year. Daljeet S. Kohli, Head of Research Tel: daljeet.kohli@indianivesh.in Abhishek Jain, Research Analyst Tel: abhishek.jain@indianivesh.in Aman Vij, Research Analyst Tel: aman.vij@indianivesh.in IndiaNivesh Research On exports front, the company expects the dollar availability issue to continue for atleast few more months. The company has been able to increase its market share in Nigeria from 45 50% to 60% because of shrinkage of market due to Chinese players facing issues. The company maintains that exports will grow at CAGR of 12 15% on 3 year basis. Valuation and Outlook We expect momentum in domestic volumes to continue on the back of new launches like Pulsar RS200, Avenger, Platina, V and new CT100B. We expect realizations to improve going forward with the sales of Avenger increasing to 30,000 units per month and expected launch of 150 cc bike 'V' in March with price tag of close to Rs 60,000. At CMP of Rs 2353 the stock is trading at PE multiple of 16.7x FY17E EPS. We maintain BUY rating on the stock with target price of Rs (20x FY17E EPS). IndiaNivesh Securities Limited Research Analyst SEBI Registration No. INH & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai Tel: (022) IndiaNivesh Research is also available on Bloomberg INNS, Thomson First Call, Reuters and Factiva INDNIV.

7 Daljeet S. Kohli Head of Research Tel: Prerna Jhunjhunwala Research Analyst Tel: Result Preview Nitin Spinners Ltd Rating: BUY Target: 112 Particulars (Rs Mn) Q3FY16 Q2FY16 Q3FY15 QoQ (%) YoY(%) Net Sales EBITDA PAT EPS Margin (%) Bps Chg EBITDA PAT Source: Company, IndiaNivesh Research Nitin Spinners is likely to report standalone Q3FY16 results with net sales growth of 25.2% yoy. This growth is likely to be driven by volume growth of 13.6% and balance due to product mix improvement. EBITDA is likely to improve 213 bps yoy to reach 18% on account of decline in raw material prices and improvement in sales mix. We expect PAT to grow at meagre 3.8% yoy due to high interest and depreciation cost (on account of capacity expansion) and higher effective tax rate. Key things to watch: Volume growth and margin improvement Valuation: At CMP of Rs 67.5, the stock trades at PER of 6.6x, 6.3x and 4.0x its FY16E, FY17E and FY18E earnings. We maintain BUY rating on the stock with target price of Rs 112 per share.

8 Daljeet S. Kohli Head of Research Tel: Yogesh Hotwani Research Analyst Tel: Allahabad Bank Rating: HOLD Target: Rs 88 (Rs mn) Q3FY16E Q2FY16 Q3FY15A % QoQ % YoY Net Interest Income 15,941 16,215 16,071 (2) (1) Pre Provisioning Profit 11,241 11,588 10,747 (3) 5 Net Profit 2,576 1,771 1, EPS (Rs) Source: Company Filings, IndiaNivesh Research We expect lower advances growth of 6.4% yoy and Net Interest income to grow at muted rate of 1% yoy to Rs 15.9 bn. NIMs (Calc) is expected to decline by 10 bps to 3.1%. Non interest income to grow by 20% yoy to Rs 5.3 bn led by low base of Q3FY15. Operating profit to grow by 5% yoy to Rs 11.2 bn led by lower operating expense growth of 3% yoy. Despite lower Operating profit growth, Net profit is expected to grow by 57% yoy mainly due to 1) higher tax expense in Q3FY15 (62% tax rate) and 2) lower provisioning expense growth of 2% yoy to Rs 6.6 bn. We expect Gross and Net NPA to increase to 5.4% and 3.7% respectively from 5.3% and 3.6% in Q2FY15. Valuation At CMP of Rs53, ALBK is trading at P/ABV of 0.4x and 0.4x for FY16E and FY17E respectively. We have a hold rating on ALBK with target price of Rs 88. Key things to watch out for Fresh slippages and recoveries and upgradation. Any asset sale to ARC Punjab National Bank Rating: HOLD Target: Rs 130 (Rs mn) Q3FY16E Q2FY16 Q3FY15A % QoQ % YoY Net Interest Income 43,001 43,220 42,331 (1) 2 Pre Provisioning Profit 29,115 29,385 27,507 (1) 6 Net Profit 7,585 6,210 7, (2) EPS (Rs) (10) Source: Company Filings, IndiaNivesh Research PNB s loan growth is likely to remain muted as bank is under consolidation phase for some time and expect growth of 7% yoy. Net Interest Income is likely to increase by 2% yoy to Rs 43 bn with marginal decline in NIMs (Calc) by 8 bps qoq (down 25 bps yoy) to 3.11%. Non interest income is expected to increase by 9% yoy mainly due to high base of Q3FY15 (up 38% yoy in Q3FY15). Operating profit is expected to grow by 6% yoy to Rs 29.1 bn and Net Profit is expected to decline by 2% yoy mainly due to higher provisioning expense of Rs 17.8 bn for Q3FY16E. We expect asset quality pain to continue for PNB and expect Gross NPA of 6.5% and Net NPA of 4.01% respectively. Valuation At CMP of Rs94, PNB is trading at P/ABV of 0.7x and 0.6x for FY16E and FY17E respectively. We have a hold rating on PNB with target price of Rs 130. Key things to watch out for Fresh slippages and NPAs from restructured book Any traction in retail loan book as per new management s strategy

9 Daljeet S. Kohli Head of Research Tel: Abhishek Jain Research Analyst Tel: Harshraj Aggarwal Research Associate Tel: GAIL Rating: HOLD Target: Rs.363 Rs.mn Q3FY16e Q2FY16 Q3FY15 Q o Q % Y o Y % Revenue EBIDTA PAT EPS Margin % Margin % Margin % Basis Points (BPS) EBITDA % PAT % Source: Company Filings; IndiaNivesh Research GAIL should witness an improvement in earnings on QoQ basis. Q2FY16 earnings were impacted due to high operational loss in petrochemical business. We forecast transmission volume at 92 MMSCMD (vs 90 MMSCMD in Q3FY15) and trading volume at 75 MMSCMD (vs 74 MMSCMD in Q3FY15) for Q3FY16. We expect EBITDA margin to improve by 120 bps YoY and 182 bps QoQ on the back of better LPG and trading margin. RasGas has modified LNG price and linked its price to 3 months average of Brent crude till 2028, thereby new price will be lower by USD5.5/mmbtu. GAIL had been under stress as liquefied natural gas (LNG) procured via long term contract had turned out to be expensive than spot buys with no takers for the gas. Thus, reduction in LNG price would help GAIL to improve transmission, trading and petrochemical margin. However this benefit will accrue from next quarter onwards. We expect GAIL would not pay any subsidy in Q3FY16 for OMC s losses. Key points to watch out (1) Subsidy sharing (2) transmission volume (3) Petchem and trading business margin (4) LPG/LHC business performance Valuation At CMP of Rs. 344stock is trading at 12.32X FY17e EPS. We maintain hold rating on the stock with target price of Rs. 363 (based on 13xFY17E EPS).

10 Daljeet S. Kohli Head of Research Tel: Abhishek Jain Research Analyst Tel: Ashiana Housing Rating: BUY Target: 290 Consolidated Financials (Rs mn) Q3FY16E Q2FY16 Q3FY15 Q o Q Y o Y Net Sales % 8.8% EBIDTA % 170.9% Net Profit % 19.1% bps bps EBIDTA Margin % 28.5% 16.6% 9.6% 1,186 1,890 Net Margin % 27.2% 16.9% 20.9% 1, Source: Company Filings, IndiaNivesh Research We expect revenue de growth of 8.8% y/y due to expected delay in Ashiana Town Beta & Ashiana Dwarka projects to Q4FY16E. Revenue likely to berecognized in Q3FY16E from following projects: (I) Ashaiana Anantara, Jamshedpur Ph2 (2) (SA ~0.11 mn sq. ft.) (II) Gulmohar Gardens Jaipur (SA ~0.18 mn sq. ft.), and (III) Existing Inventory of Lavasa Pune, Anantara, etc. However, Q3FY16 results are not comparable on year overyear basis due to change in accounting policy from percentage completion to completed contract method. EBIDTA margin could expand by 1,890 bps y/y to 28.5% (v/s 9.6% in Q3FY15& 16.6% in Q2FY16) on back of revenue recognition from partnership projects which have higher margins. The company could report Net Profit of Rs. 89.1mn (v/s Rs mn in Q3FY15) due to higher EBITDA base. Key things to watch out: Projects Handed over in Q3FY16E Sales from existing Inventory of completed projects Commencement Certificate for new future projects Valuation: AT CMP Rs. 140, AHL is trading at FY16E and FY17E, EV/EBIDTA multiple of 3.8x and 2.4x respectively. We have a strong BUY rating on the stock with a SOTP based TP of Rs. 290 Nesco Limited Rating: BUY TP: 1,896 (Rs mn) Q3FY16E Q2FY16 Q3FY15 Q o Q Y o Y Net Sales % 20% EBIDTA % 25% Net Profit % 27% bps bps EBIDTA Margin % 77% 80% 74% Net Margin % 55% 55% 52% Source: Company Filings, IndiaNivesh Research We expect revenue growth of 54% y/y 5% Q/Qon back of following: (1) Steady revenues from Exhibition business & IT Buildings 1/2, and (2) Improvement in revenues growth trajectory from IT Building 3 due to 100% occupancy in Q1FY16 On year over year basis, EBIDTA margin is likely to contract by 1,794 bps y/y on account of higher revenue contribution from low margin Capital Goods Division in Q3FY16E. Key things to watch out for: Updates on construction of IT Building 4 Commencement of IT Building 3 Future order bookings from Exhibition business Valuation: AT CMP Rs. 1,662, Nesco is trading at 14.4X FY16E and 11.5x FY17E EV/EBIDTA estimates. We have BUY with a SOTP based TP of Rs. 1,896 on the stock.

11 Daljeet S. Kohli Head of Research Tel: Tushar Manudhane Research Analyst Tel: Dr Reddy s Lab Rating: HOLD Target: Rs 3,337 DRRD IN (Rs Mn) Q3FY16E Q3FY15 Q2FY16 Y y (%) Q q (%) SALES 38,502 38,431 39, (3.5) Operating Profit (EBIT) 7,706 7,420 8, (13.8) Adj Net Profit 6,565 5,502 7, (14.7) Forex (loss) gain/ other 244 (479) NA Rep Net Profit 6,565 5,746 7, (9.1) EPS (Rs.) (14.7) bps bps EBIT Margins (%) (239) Net Margins (%) (225) Dr. Reddy Laboratories (DRRD IN) is expected to show similar sales, compared on y y basis, to Rs38.5bn, led by US generics and domestic formulation. US generics sales are expected to grow by 10% y y to US$303mn for the quarter. DF sales are expected to outperform industry by growing at 16% y y for the quarter. Russia and ROW sales are expected to contract by 36% y y and 21% y y due to currency headwinds. EBIT margin is expected to improve by 71bps y y to 20% for the quarter. Adjusted PAT is expected to grow by 19.3% y y to Rs6.5bn for the quarter. Adjusted PAT is expected to grow at higher rate than EBIT due to higher tax outgo in 3QFY15. Key factors to watch: Progress on remediation measures and ANDA approvals, performance in PSAI segment, domestic formulation segment and US market. R&D spend would also be the key factor to watch. Valuation: At CMP of Rs3,071, the stock is trading at 20x FY16E EPS of Rs153.8 and 20.2x FY17E EPS of Rs We have HOLD rating with price target of Rs3337 based on 22x FY17E earnings Aurobindo Pharma Rating: BUY Target: 995 ARBP IN (Rs Mn) 3QFY16E 3QFY15 2QFY16 Y y (%) Q q (%) Sales 38,118 31,662 31, EBITDA 8,898 6,122 6, Net Profit (Adj.) 5,747 3,985 4, Forex (loss) Gain/other (202) 12 NA NA Net Profit Reported 5,747 3,844 4, Adj EPS (Rs.) bps bps EBITDA Margins (%) Net Margins (%) Aurobindo Pharma (ARBP IN) is expected to maintain sales momentum, led by US market and addition of recently acquired Actavis operations. We expect US sales to grow by 45% y y to US$276mn, led by increased share in existing products and partly by new product approvals. API sales are expected to grow at moderate rate due to higher captive consumption. EBITDA margin is expected to improve 401bps y y at 23.3% due to superior product mix. We expect Adjusted PAT to improve by 44.2% y y to Rs5.7bn for the quarter. Key factors to watch: Progress on turnaround of acquired Actavis operations and performance in US market. Valuation: At CMP of Rs747, the stock is trading at 19x FY16E EPS of 39.4 and 15x FY17E EPS of Rs49.7. We have BUY rating with price target of Rs995, based on 20x FY17E earnings

12 Jubilant Life Sciences Ltd Rating: BUY Target: Rs 494 JOL IN (Rs Mn) Q3FY16E Q3FY15 Q2FY16 Y y (%) Q q (%) Sales 15,130 14,303 14, EBITDA 3,242 1,853 3, Adj Net Profit 1,135 (110) 1,135 NA (0.0) Forex (loss) gain 23 Rep Net Profit 1,135 (110) 1,158 NA (2.0) Adj EPS 7.1 (0.7) 7.1 NA (0.0) bps bps EBITDA Margins (%) Net Margins (%) 7.5 (0.8) (35) We expect Jubilant Life Sciences (JOL IN) to show 5.8% y y increase in sales to Rs15.1bn, on account of increase in pharma segment sales. The life science ingredients sales are expected to remain muted due to subdued demand in China market. We expect EBITDA margin to improve by 837bps y y to 21.2% due to probable higher operating margin in pharmaceutical segment. Higher operating margin in pharmaceutical segment is expected due to new product launches and increased traction in existing products. As a result, adjusted PAT is expected to be Rs1.1bn against loss of Rs110mn in 3QFY15. Key factors to watch: Pricing & volume growth, EBITDA margins, pricing scenario in chemical business and update on Symtet capacity utilization. Valuation: At CMP of Rs366, the stock is trading at EV/EBITDA of 8x FY16E EV/ EBITDA and 6.6x FY17E EV/EBITDA. We have BUY rating with price target of Rs494.

13 Ipca Laboratories Though a muted quarter, outlook is improving over medium term Q3FY16 Result Updates February 09, 2016 Current CMP : Rs.647 Rating : HOLD Target : Rs.629 Previous Rating : HOLD Target : Rs.629 STOCK INFO Bse Nse IPCALAB Bloomberg IPCA IN Reuters IPCA.BO Sector Pharmaceutical Face Value (Rs) 2 Equity Capital (Rs mn) 252 Mkt Cap (Rs mn) 81,696 52w H(Rs) wLl(Rs) 560 Avg Daily Vol (Bse+Nse) 443,489 SHAREHOLDING PATTERN % (as on Dec. 2015) Promoters Public Source: BSE STOCK PER. (%) 1m 3m 12m IPCA Lab (5.0) (8.0) 5.3 Sensex (2.6) (7.5) (15.4) Source: Capitaline, IndiaNivesh Research IPCA Lab v/s SENSEX IPCA LABS LTD Source: Capitaline, IndiaNivesh Research Daljeet S. Kohli Head of Research Tel: daljeet.kohli@indianivesh.in Tushar Manudhane Research Analyst SENSEX Index Tel: tushar.manudhane@indianivesh.in IndiaNivesh Research Ipca Laboratories (IPCA IN) adjusted PAT was marginally below our estimates for the quarter. Sales growth remained adversely affected by decline in exports formulation. Domestic formulation (DF) sales have picked up in terms of growth post restructuring sub divisions of DF business in 1HFY16. We cut our FY16E and FY17E EPS estimates by 15.8% and 3.7% to Rs18.2 and Rs40.4 to factor reduction in institutional anti malaria (AM) business and moderate y y growth in API exports. We maintain our price target of Rs629. Though the financial performance was muted for the quarter, we remain positive on IPCA on the back of likely resumption of institutional anti malaria business for global fund over medium term and increased business expected from HCQ. The remediation measures are ongoing for clearing regulatory hurdle at its manufacturing facility. At CMP of Rs647, the stock is trading at 35.5x FY16E EPS of Rs18.2 and 16x FY17E EPS of Rs40.4. We maintain HOLD based on valuation. Rs.mn Q3FY16 Q3FY15 Q2FY16 Y y (%) Q q (%) INSL Est Variance(%) Revenue 6,743 7,341 7,386 (8.2) (8.7) 7,708 (12.5) EBIDTA 1,137 1, (6.1) ,138 (0.0) Adjusted PAT (7.8) (3.8) PAT (44.1) (26.8) 505 (54.0) Y y contraction in formulation exports continue to adversely impact earnings: Sales came in at Rs6.7bn, down 8.2% y y, for the quarter. This is the sixth consecutive quarter of y y contraction in sales for IPCA. This is largely due to contraction in exports formulation and domestic API business. Exports API grew at moderate rate of 3% y y for the quarter. The pick up in domestic formulation sales growth helped in offsetting decline in sales to some extent for the quarter. Gross margin improved 355bps y y to 66.4% due to superior product mix. EBITDA margin improved at lower rate on y y basis due to higher employee cost. Other expenses declined by 8% y y due to reduction in promotional expenses and freight cost for the quarter. R&D spent remains at 4% of net sales for 9MFY16. There has been write off of raw material cost related to institutional anti malaria business due to regulatory hurdle. Adjusting for the same, PAT is Rs485mn against reported PAT of Rs232mn. DF sales growth on improving path: DF sales at Rs3bn were up 10.7% y y for the quarter. The y y sales growth was muted for past two quarters due to restructuring exercise carried out in its anti malaria and anti biotic segment. This has led to rationalization of field force as well as re allocation of existing field force. The improvement in y y growth as a result of this exercise is visible in Q3FY16. The share of pain segment has improved by 2% and anti malaria as fallen by 2% as percentage of DF sales. We expect further pick up in growth in DF sales going forward. Though Institutional AM business was muted for quarter, it is expected to pick up in medium term: Institutional anti malaria business reduced from Rs820mn in 3QFY15 to Rs240mn in 3QFY16. This is due to no business from global fund for the quarter. Post clearance from WHO in 2QFY16, IPCA would now be able to get allocation from Global fund from 4QFY16. The value of procurement by Global fund would be lower due to fall in key raw material (Artemesnin) price. However, profitability may remain intact for IPCA. IPCA has also started shipment to various countries (Ex Global Fund). IndiaNivesh Securities Limited Research Analyst SEBI Registration No. INH & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai Tel: (022) IndiaNivesh Research is also available on Bloomberg INNS, Thomson First Call, Reuters and Factiva INDNIV.

14 Q3FY16 Result Update (contd...) Regulatory update: IPCA recently received warning letter from USFDA at its three manufacturing facilities Ratlam unit, Pithampur unit and Piparia unit. The warning letter was followed by import alert already issued by USFDA. During IPCA s meeting with USFDA after issuance of warning letter, USFDA has recommended third party audit of systems and review of protocols followed by IPCA for risk assessment. The outcome of the audit and review is then to be submitted to USFDA. IPCA guided for time span of 3 6 months for completion of exercise. IPCA then would invite USFDA for re inspection of its facilities. Valuation: We cut our FY16E and FY17E EPS estimates by 15.8% and 3.7% to Rs18.2 and Rs40.4 to factor reduction in institutional anti malaria (AM) business and moderate y y growth in API exports. We maintain our price target of Rs629. Though the financial performance was muted for the quarter, we remain positive on IPCA on the back of likely resumption of institutional anti malaria business for global fund over medium term and increased business expected from HCQ. The remediation measures are ongoing for clearing regulatory hurdle at its manufacturing facility. At CMP of Rs647, the stock is trading at 35.5x FY16E EPS of Rs18.2 and 16x FY17E EPS of Rs40.4. We maintain HOLD based on valuation. Quarterly results summary Particulars (Rs Mn except EPS) Q3FY16 Q3FY15 Y o Y (%) Q2FY16 Q o Q (%) 9MFY16 9MFY15 Y o Y (%) Net Sales 6,743 7,341 (8.2) 7,386 (8.7) 21,638 24,372 (11.2) Other operating income (7.4) Total Income 6,841 7,406 (7.6) 7,492 (8.7) 21,913 24,572 (10.8) Consumption of raw material 2,265 2,726 (16.9) 2,807 (19.3) 8,044 8,863 (9.2) Empoyee Cost 1,484 1, , ,528 4, Other Expenditure 1,955 2,125 (8.0) 2,230 (12.4) 6,040 6,734 (10.3) Total Expenditure 5,704 6,195 (7.9) 6,501 (12.3) 18,612 19,705 (5.5) EBITDA 1,137 1,211 (6.1) ,301 4,868 (32.2) Depreciation & Ammortization ,305 1, EBIT (12.9) ,995 3,672 (45.7) Other Income (23.0) 53 (5.9) (33.0) Interest Pre tax Profit (18.7) ,923 3,713 (48.2) Tax (39.9) ,048 (68.8) adj Net Profit (7.8) ,596 2,665 (40.1) Exceptional item (254) (112) NM (139) 82.6 (859) (183) NM Net Profit (Reported) (44.1) 317 (26.8) 738 2,482 (70.3) EPS (Dil) (7.8) (40.1) O/ Share ( In Million) Key ratios Particulars (%) Q3FY16 Q3FY15 Bps Q2FY16 Bps 9MFY16 9MFY15 Bps Gross Margins (81) EBITDA margin (472) Net Margin (356) Material cost/net Sales (355) 38.0 (441) Employee Cost/ Net Sales Other Expenditure/ Net Slaes (121) Tax Rate , Revenue mix Particulars (Rs mn) Q3FY16 Q3FY15 Y o Y (%) Q2FY16 Q o Q (%) 9MFY16 9MFY15 Y o Y (%) Domestic Formulation 3,084 2, ,308 (6.8) 9,572 8, Domestic API (24.8) 332 (16.3) 1,170 1,457 (19.7) Total Domestic Sales 3,362 3, ,640 (7.6) 10,742 10, Export Formulations 2,213 3,051 (27.5) 2,274 (2.7) 6,736 9,990 (32.6) Export API 1,168 1, ,472 (20.6) 4,161 3, Total Export Sales 3,381 4,185 (19.2) 3,746 (9.7) 10,896 13,918 (21.7) Net Sales 6,743 7,341 (8.2) 7,386 (8.7) 21,638 24,372 (11.2) (contd...) February 9,

15 Q3FY16 Result Update (contd...) DF sales growth reverses its downtrend Y y sales growth expected to pick up in medium term DF sales (Rs bn) Y y growth (%) Total sales (Rs bn) Y y growth (%) (4.7) (7.1) (9.9) (8.2) (15.8) (19.1) Q3FY14 Q4FY14 Q1FY15 Q2FY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 Q3FY14 Q4FY14 Q1FY15 Q2FY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 Source: Company filings, IndiaNivesh Research Source: Company filings, IndiaNivesh Research Sequential improvement in EBITDA margin EBITDA margin (%) Q3FY14 Q4FY14 Q1FY15 Q2FY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 Source: Company filings, IndiaNivesh Research (contd...) February 9,

16 Q3FY16 Result Update (contd...) Consolidated Financial Summary: Income statement Y E March (Rs m) FY13 FY14 FY15 FY16E FY17E Net sales 27,388 31,818 30,599 30,204 41,712 Growth % 19.1% 16.2% 3.8% 1.3% 38.1% Expenditure Raw Material 10,910 11,274 11,431 10,572 13,765 Employee cost 3,766 4,779 5,396 6,083 7,924 Other expenses 6,895 8,244 8,820 8,915 11,754 EBITDA 5,817 7,522 4,953 4,635 8,269 Growth % 20.3% 29.3% 34.2% 6.4% 78.4% EBITDA Margin % 21.2% 23.6% 16.2% 15.3% 19.8% Deprecaition 840 1,009 1,772 1,735 1,409 EBIT 4,977 6,513 3,181 2,900 6,860 EBIT Margin % 18.2% 20.5% 10.4% 9.6% 16.4% Other Income Interest PBT 5,247 7,012 3,535 3,191 7,544 Tax 1,300 1,517 1, ,448 Effective tax rate % 24.8% 21.6% 28.7% 28.0% 32.5% Extraordinary items (633) (721) 43 Less: Minority Interest Adjusted PAT 3,947 5,495 2,519 2,298 5,096 Growth% 18.5% 39.2% 54.2% 8.8% 121.8% PAT margin % 14.4% 17.3% 8.2% 7.6% 12.2% Reported PAT 3,314 4,774 2,561 2,298 5,096 Growth% 18.3% 44.0% 46.3% 10.3% 121.8% Source: Company filings, IndiaNivesh Research Balance sheet Y E March (Rs m) FY13 FY14 FY15 FY16E FY17E Share Capital Reserves & Surplus 15,446 19,564 22,081 23,896 27,871 Net Worth 15,699 19,816 22,333 24,149 28,123 Non Current Liabilities Long term borrowing 3,662 2,921 5,014 5,014 5,014 Deferred Tax liabilities 1,304 1,471 1,742 1,742 1,742 Other Loang Term Liabilities Long term Provisions ,092 4,541 6,965 6,965 6,965 Current Liabilities Short term borrowings 1,571 1,380 3,210 3,210 3,210 Trade payables 2,655 3,374 3,026 2,572 3,349 Other current liabilities 1,652 2,514 2,349 1,822 2,516 Short term provisions ,297 7,814 8,939 7,958 9,429 Total Liabilities 27,088 32,171 38,237 39,072 44,517 Assets Net Block 12,045 14,710 20,195 20,272 20,948 Non Current Investments Long term laons & Advances 977 1,338 1,289 1,289 1,289 Current Assets Inventories 7,335 8,385 9,170 8,087 11,169 Sundry Debtors 4,159 4,485 3,536 4,587 6,335 Cash & Banak Balances ,137 1,960 1,116 Other Current Assets Loans & Advances 1,311 1,617 1,625 1,510 2,086 13,848 15,836 15,935 16,692 21,461 Total assets 27,088 32,171 38,237 39,072 44,517 Source: Company filings, IndiaNivesh Research Cash Flow Y E March (Rs m) FY13 FY14 FY15 FY16E FY17E PBT 4,614 6,291 3,577 3,191 7,544 Depreciation 840 1,009 1,772 1,735 1,409 Interest Other non cash charges Changes in working capital (1,000) (1,048) (365) (915) (4,142) Tax (917) (1,302) (874) (894) (2,448) Cash flow fromoperations 3,869 5,271 4,366 3,406 2,626 Capital expenditure (2,286) (3,839) (6,915) (1,812) (2,086) Free Cash Flow 1,583 1,432 (2,549) 1, Other income Investments (448) (45) Cash flow from investments (2,634) (3,744) (6,915) (1,812) (2,086) Equity capital raised (440) Loans availed or (repaid) 445 (440) 3,759 Interest paid (318) (283) (256) (288) (263) Dividend paid (incl tax) (468) (661) (512) (483) (1,121) Cash flow from Financing (781) (1,384) 2,990 (770) (1,384) Net change in cash (844) Cash at the beginning of the year ,137 1,960 Adjust 1 21 Cash at the end of the year ,137 1,960 1,116 Source: Company filings, IndiaNivesh Research Key ratios Y E March FY13 FY14 FY15 FY16E FY17E EPS (Rs) Core EPS Reported Cash EPS (Rs) DPS (Rs) BVPS (Rs) ROCE 14.6% 17.1% 6.6% 5.9% 11.4% ROE 33.4% 35.4% 15.8% 13.2% 26.8% Inventories Days Sundry Debtors Days Trades Payable Days PER (x) P/BV (x) EV/EBITDA (x) Dividend Yield % 0.7% 1.1% 0.6% 0.6% 1.4% m cap/sales (x) net debt/equity (x) net debt/ebitda (x) Source: Company filings, IndiaNivesh Research (contd...) February 9,

17 Atul Auto Ltd. Margins above expectations Q3FY16 First Cut Analysis February 9, 2016 Current CMP : Rs.492 Rating UR Target : UR Previous Rating : HOLD Target : Rs.486 STOCK INFO Co. Name Atul Auto Ltd Bse Nse ATULAUTO Bloomberg ATA IN Reuters ATUL.BO Sector Auto Ancilliary Face Value (Re) 5 Equity Capital (Rs Mn) 110 Mkt Cap (Rs Mn) 10,794 52w H/L (Rs) 635/330 Avg Daily Vol (BSE+NSE) 55,004 SHAREHOLDING PATTERN % (as on Dec. 2015) Institutions Others, Incl Public Promoters Source: BSE STOCK PER. (%) 1m 3m 12m ATUL AUTO 10% 7% 10% SENSEX 3% 7% 14% Source: Capitaline, IndiaNivesh Research ATUL AUTO v/s SENSEX ATUL AUTO SENSEX Source: Capitaline, IndiaNivesh Research Atul Auto Q3FY16 numbers were above our expectation. Though revenue was in line with our expectations, EBITDA margins were above our expectation because of lower than expected raw material prices and lower other expenses. PAT was boosted further by lower than expected interest expense (actual Rs 1 mn vs our expectation of Rs 6 mn). Revenue increased by 9% YoY to Rs bn in line with our expectation of Rs bn. Average realization increased by 2% YoY to Rs. 119,906. Volume increased by 7% YoY in Q3FY16 to units. EBITDA margin expanded 388 bps YoY (up 122bps QoQ) to 16.6% due to lower commodity prices and lower other expenses. Raw Material cost (as % of sales) was down 404bps YoY to 71.8%. Other expenditure (as % of sales) was down 64 bps YoY to 5.6% and Employee expense (as % of sales) was up by 50 bps YoY to 6.4%. The much awaited CNG three wheeler Gemini range was recently introduced by the company which will further strengthen Atul Auto s market share and reach in new markets. With the introduction of CNG three wheelers, the company would be addressing complete spectrum and all section of the market as CNG not only helps in reducing pollution but also provides value for the owner. The company currently has wide network with 200 dealers and more than 120 secondary dealers. Atul Auto is planning a greenfield expansion to add a capacity of 60,000 units at Ahmedabad by FY18 at an estimated capex of Rs mn which will be funded mostly by internal accrual. The company has already incurred capex of Rs 400 mn till 31 Dec Rs.mn Q3FY16 Q2FY16 Q3FY15 Q o Q % Y o Y % INSL Q3FY16e Variance(%) Revenue EBIDTA PAT Source: Company Filings; IndiaNivesh Research Valuation and Outlook Daljeet S. Kohli, Head of Research Tel: daljeet.kohli@indianivesh.in We believe with further capacity addition and new petrol product launch, Atul can efficiently tap export markets along with urban markets in India and, thereby, continue the strong growth momentum. The entry into petrol segment, increasing capacity and overseas footprint could lead to faster growth in market share in the coming years. However we will wait for management commentary to know whether such high margins are sustainable and update on petrol and CNG version for domestic market before changing our estimates. Thus we will review our rating and target price post Q3FY16 concall. At CMP of Rs 492 the stock is trading at PE multiple of 18.2x FY17E EPS. Abhishek Jain, Research Analyst Tel: abhishek.jain@indianivesh.in Aman Vij, Research Analyst Tel: aman.vij@indianivesh.in IndiaNivesh Research IndiaNivesh Securities Limited Research Analyst SEBI Registration No. INH & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai Tel: (022) IndiaNivesh Research is also available on Bloomberg INNS, Thomson First Call, Reuters and Factiva INDNIV.

18 Q3FY16 First Cut Analysis (contd...) Quick Fundamentals (Rs. Mn) Q3FY16 Q2FY16 Q3FY15 QoQ % YoY % 9mFY16 9mFY15 YoY% Volume Revenue Other Operating Income (52) (45) Total Income Cost of Revenues Raw Materials Other Expenditure (2) Employee Expenses EBIDTA Depreciation (6) EBIT Interest Expense (91) (55) Other income (45) (78) PBT (before exceptional items) Exceptional Items PBT (after exceptional items) Provision for taxation PAT EPS (RS.) Margins % Basis Points (bps) bps EBITDA EBIT PBT (before exceptional items) PAT Source: Company Filings; IndiaNivesh Research EBITDA margin expanded 388 bps YoY to 16.6% EBITDA margin expanded 388 bps YoY (up 122bps QoQ) to 16.6% due to lower commodity prices and lower other expenses. Raw Material cost (as % of sales) was down 404bps YoY to 71.8%. Other expenditure (as % of sales) was down 64 bps YoY to 5.6% and Employee expense (as % of sales) was up by 50 bps YoY to 6.4%. Cost Analysis (% of Revenue) Q3FY16 Q2FY16 Q3FY15 bps QoQ bps YoY 9mFY16 9mFY15 bps YoY Raw Material (Adj.) 71.8% 73.6% 75.8% % 76.1% 307 Other Expenses 5.6% 5.0% 6.2% % 6.2% 47 Employee Expenses 6.4% 6.6% 5.9% % 6.6% 50 Source: Company Filings; IndiaNivesh Research Valuation We believe with further capacity addition and new petrol product launch, Atul can efficiently tap export markets along with urban markets in India and, thereby, continue the strong growth momentum. The entry into petrol segment, increasing capacity and overseas footprint could lead to faster growth in market share in the coming years. However we will wait for management commentary to know whether such high margins are sustainable and update on petrol and CNG version for domestic market before changing our estimates. Thus we will review our rating and target price post Q3FY16 concall. At CMP of Rs 492 the stock is trading at PE multiple of 18.2x FY17E EPS. Atul Auto Ltd. (contd...) February 9,

19 Q3FY16 First Cut Analysis (contd...) Consolidated Financials Income Statement Y E March (Rs m) FY13 FY14 FY15 FY16e FY17e Net sales 3,638 4,301 4,928 5,551 6,620 Y/Y Ch % COGS 3,094 3,650 4,132 4,624 5,461 SG&A EBITDA Y/Y Ch % EBITDA Margin % Depreciation EBIT EBIT Margin % Interest Other Income (Inc Forex) PBT Tax Effective tax rate % Reported PAT Y/Y Ch % Minority & Exceptional Adj. PAT (APAT) RPAT Margin % Y/Y Ch % Balance Sheet Y E March (Rs m) FY13 FY14 FY15 FY16e FY17e Share Capital Reserves & Surplus ,099 1,442 1,886 Net Worth ,211 1,554 1,998 Minority Long term + ST loans Others Total Liabilities ,216 1,559 2,003 Gross Block 2,316 2,420 2,742 3,192 3,842 Less Depreciation 1,835 1,887 1,943 2,006 2,079 Net Block ,186 1,763 Intangible Investments Deferred tax (net) Current Assets Sundry Debtors Cash & Bank Balance Loans & advances Inventories Current Liabilities Provisions Net Current Assets Total assets ,216 1,559 2,003 Cash Flow Y E March (Rs m) FY13 FY14 FY15 FY16e FY17e Operating Profit Depreciation Interest Exp Changes in Working Capital Cash Flow After Chang in WCapital Tax Others Cash flow from operations Capital expenditure (net) Free Cash Flow Other income Investments Cash flow from investments Long Term Debt (Decrease) Increase Dividend paid (incl tax) Share Issue / Repurchase & Others Cash flow from Financing Net change in cash Cash at the beginning of the year Cash at the end of the year Key Ratios Y E March FY13 FY14 FY15 FY16e FY17e Adj.EPS (Rs) Cash EPS (Rs) DPS (Rs) BVPS ROCE % ROE % ROIC % Du Point Analysis Net profit margin Asset turnover Financial leverage PER (x) 41.6x 36.4x 26.6x 23.6x 18.2x P/BV (x) 14.5x 11.4x 8.9x 6.9x 5.4x P/CEPS (x) 35.5x 30.8x 24.3x 20.7x 16.2x EV/EBITDA (x) 26.0x 22.8x 18.2x 14.9x 11.9x Dividend Yield % m cap/sales (x) 3.0x 2.5x 2.2x 1.9x 1.6x net debt/equity (x) 0.5x 0.5x 0.2x 0.2x 0.1x net debt/ebitda (x) 0.9x 1.0x 0.5x 0.4x 0.2x Debtors (Days) Creditors (Days) Inventory (Days) Cash Conversion Cycle (Days) Source: Company, IndiaNivesh Research Atul Auto Ltd. (contd...) February 9,