Overall the Indian markets have been

fairly resilient given the challenging

environment on the growth front
faced by major global economies.
Specifically FY18 was a transitional
year for Indian markets amidst a
successful economic transformation
post demonetisation and GST. The
year ended with encouraging
corporate quarterly earnings with the
Sensex Profit after Tax (PAT) (ex-
banks) up a healthy ~15% YoY. This
marks Q4FY18 as the first quarter
staging double digit bottom line
growth since previous five quarters. It
is largely attributable to a robust
consumer demand depicted by
~24% YoY growth in automobile
sales volume, double digit volume Shilpa Kumar
growth in the FMCG pack and ~15% MD & CEO
YoY growth in cement sales volume. ICICI Securities Ltd.

The recent concerns about depreciating rupee and current account deficit
(CAD) (at record high levels) has caused some anxiety among investors.
The turbulence in the rupee due to sharp hike in crude oil prices is likely to
trigger a temporary shifting of liquidity in the global landscape. This in turn,
is also expected to cause volatility across asset classes.

Going into FY19, we expect the global liquidity allocation to focus back on
the core fundamentals of respective economies and assets classes across
the globe. In that respect, India is expected to stand taller as prominent
concerns on inflation, CAD and weaker currency will be on the mend.

Our house view on equity remains positive as equity benchmarks gained in

April, snapping their two month losing streak, amid expectations of
earnings pickup and positive global equities. We believe the broader
consolidation would make the market healthy by cooling off the overbought
situation. As for the recent rise in yields due to surge in crude oil prices and
higher state government borrowing has dented investor sentiment.
However, gross YTMs of most accrual funds or credit funds have risen
making them an ideal investment option.

The earnings seasons i.e. Q4FY18 was marred by losses at large public and
private sector banks, owing to increased provisioning following a RBI
directive. However, with much of the pain already recorded and IBC
resolutions underway, we expect incremental slippages to be contained
aiding moderate provisions. This, coupled with improving credit growth,
will enable profitability to improve in PSU and corporate banks over FY19-
20E. Therefore, going forward, with rebound in banking space amidst
forecast of normal monsoon 2018 and firm rural demand, we expect
corporate earnings to stage an impressive recovery, growing in excess of
20% CAGR over FY18-20E.

On the brighter side, India's GDP (gross domestic product) touched a better-
than-expected 7.7 per cent in the last quarter, outperforming China (6.8 per
cent in the corresponding quarter) by nearly a percentage point and
retaining India's rank as the world's fastest-growing economy. Addressing
the inflation concerns, RBI in its latest monetary policy meet had increased
the key benchmark rates by 25 bps, first rate hike in last 4 years. The primary
aim of the same is to control inflation with forward stance held as Neutral.
RBI has also maintained its domestic GDP growth projection for FY19E at
7.4% vs. 6.7% in FY18. GDP growth is projected in the range of 7.5-7.6% in
H1 and 7.3-7.4% in H2, with risks evenly balanced.

Improving sentiments, stable political environment and pickup in economic

activity would continue to attract investor towards equities, resulting in shift
in preference towards financial savings from physical savings. Moreover,
other asset classes including gold and real estate have shown signs of tiring
up. Even though markets have run up in the recent past, investors should
continue to increase exposure towards equities to create a balanced
portfolio in the long run. In an environment like this the importance of
systematic investments plans (SIPs) just cannot be ignored. While SIPs are
traditionally used to invest in mutual funds for those of you who prefer the
direct route to equity investments you can also start SEPs in stocks as well.

Through our website www.icicidirect.com and this magazine we want to

make an earnest attempt to partner with you in setting and achieving your
financial goals. Do walk into any of your Neighbourhood Financial
Superstore and talk to us.

ICICIdirect Money Manager 1 June 2018

The end of earning season is a good time to review individual's investment portfolio,
track projected returns and modify investment allocation if necessary. The annual
report along with the quarterly results gives details of market's performance, the
profits, cash flows, inventories and other key indicators. Analysis of quarterly
reports is examined by experts and coherent messages of the outcome are
conveyed to all the investors. This information helps the investor to take informed
decisions with regard to their investments in those companies.

In this edition of Money Manager we bring you a detailed analysis of the Fourth
Quarter results. On the sectoral front, in Q4FY18, overall auto volumes increased
23.9% YoY mainly due to low base & strong growth momentum across segments.
While the topline growth for the quarter was led by the commodity space and
consumer driven auto space, bottomline growth, on the other hand, witnessed a
divergence. Additionally, sectors like auto, capital goods, cement, FMCG, real estate,
media, metals and pharma reported positive performance; whereas, banking, oil
and gas, building material & telecom failed to show robust growth.

These quarterly reviews would give you a bird's eye view of the financial situation of
various sectors in our economy. ICICIdirect research has dissected the numbers and
come out with estimates for the ongoing financial year, which I am sure you will find
very useful.

We believe, this information helps the investor to take informed decisions with
regard to their investments in analyzed companies or sectors. We also bring to you
an interview with Jinesh Gopani, Head- Equities, Axis Mutual Fund. His insights into
Q4FY18 results, among others, are definitely worth a read.

The edition also offer comprehensive information and analysis on infrastructure

funds, which present good investment opportunity with high growth potential. We
welcome your comments and queries on personal finance or any other money-
related matter….please write to us at moneymanager@icicisecurities.com . Read
on, stay updated.

Your magazine is now also available on www.magzter.com, a

digital newsstand.
Editor & Publisher : Abhishake Mathur, CFA
Editorial Board : Sameer Chavan, CWM®, Pankaj Pandey
Editorial Team : Nithyakumar VP CFPCM, Sachin Jain, Research Team
Coordinating Editor : Namrata Lonkar

ICICIdirect Money Manager 2 June 2018

MD Desk ............................................................................................. 1
Editorial ............................................................................................... 2
Contents .............................................................................................. 3
News ................................................................................................... 4
Stock ideas: Bandhan Bank & Ashok Leyland ........................ 5
Flavour of the Month: Q4FY18 results special: Know who performed how
Quarterly financial results are a periodical review of the performance
of India Inc. The research team at ICICIdirect has analyzed the fourth
quarter results put out by different companies. Here we provide you
a report card of various sectors and what promise they hold for
investors in the near future. .................................................. 15
Tête-à-tête: In talk industry experts about current economic scenario
In an exclusive interview with Jinesh Gopani, Head- Equities, Axis
Mutual Fund and Nimesh Chandan, portfolio manager at Canara
Robeco Asset Management ................................................... 32
Ask Our Planner
Our financial expert answers your personal finance queries … 39
Mutual Fund Analysis
Which are the top performing mutual funds in current market
scenario? Check these top infrastructure funds recommended by our
research team. .......................................................................... 42
This month on iCommunity
Take a look at the latest activities on our unique information platform-
iCommunity (for June 2018)..................................................... 55
Equity Model Portfolio ............................................................................ 56
Quiz Time ................................................................................................. 60
Prime Numbers ....................................................................................... 61

ICICIdirect Money Manager 3 June 2018

 Information technology companies slam brakes on fresh investment

The information technology (IT) sector has put brakes on new investment to
conserve cash but has done so even as share buybacks and dividends have
become their preferred route to keep the stock markets happy. As a result, the
country's top IT companies have reported a decline in their assets for the first time
in many years. The combined assets of the top five -Tata Consultancy Services
(TCS), Infosys Technologies, Wipro, HCL Technologies and Tech Mahindra were
down one per cent to Rs 2,774 billion at the end of 2017-18, from Rs 2,801 bn a year
before.
Courtesy: Business Standard

Oil companies plan to add 25,000 petrol pumps

NEW DELHI: State oil companies plan to add an unprecedented 25,000 petrol
pumps in one shot, nearly half as much as operational today, across the country
after the government signaled them to do so, according to people familiar with the
matter. The oil ministry has also scrapped an official policy on petrol pump dealers'
appointment, giving fuel retailers such as Indian Oil, Hindustan Petroleum and
Bharat Petroleum the freedom to design their own rules for setting up filling
stations, according.
Courtesy: Economic Times

5G panel identifies 6000 Mhz spectrum as available for next gen service
The 5G committee of the telecom ministry has said that around 6000 Mhz of
spectrum can be made available without delay for the next generation mobile
service. If accepted, the panel's recommendation, which has been submitted to
the government, can lead to India's largest ever spectrum allocation for a service.
An expert member of the panel, Arogyaswami Paulraj told PTI in an interview that
initially the service will enhance mobile data speed in India by up to 50 per cent
compared to current levels. Paulraj is Professor Emeritus, Stanford University, and
a pioneer of MIMO wireless communications, a technology break through that
enables improved wireless performance. MIMO is now incorporated into all new
wireless systems, as per Stanford site.
Courtesy: Financial Express

'Incredible India' website revamped

The Centre has unveiled a revamped version of its 'Incredible India' website with an
aim to pitch the country as a 'must-visit' destination. The website, which has been
developed by Tech Mahindra, is mobile-ready and will provide more interactive
and personalised experience for the travellers. "With the help of Adobe solution
suite, the Ministry of Tourism will now be able to engage effectively with visitors
across web and social channels and measure engagement to deliver real time
personalised experiences for each visitor," an official statement said.
Courtesy: The Hindu

ICICIdirect Money Manager 4 June 2018


Ashok Leyland - Strong growth momentum to continue…
Company Background
Ashok Leyland (ALL) is one of
the few pure play major
commercial vehicle
manufacturers in India. ALL is
the second largest player
across various M&HCV
segments with an overall
market share of ~34%. At
present, trucks accounts for
>70% of its revenue, the
company over the years has
diversified into other
segments namely buses, LCV,
exports, defense & spares.
Investment Rationale
Favourable macro factors +
company initiative = double digit
growth
ALL saw a robust FY18
performance with volumes
growing ~21% (M&HCV-16%
& L C V- 3 7 % ) , r e v e n u e s
growing 30% & broadly
maintaining market share
(~40 bps increase). Going
ahead, the management
expects M&HCV total industry
volumes (TIV) to grow 10-
12% in FY19E on the back of
macro factors like 1) quantum
jump in infrastructure
spending & 2) GST led faster
ICICIdirect Money Manager
STOCK IDEAS
turnaround time and more
hub-spoke adoption leading to
higher fleet operator
profitability & shift to higher
tonnage trucks. In FY20E,
double digit growth will be
achieved on the back of pre-
buying ahead of BS-6
implementation in 2020 (where
price of vehicles will increase
in range of 6-8%). Post FY20E,
growth in the M&HCV industry
will sustain on the back of
scrappage policy wherein the
management expects
~2,00,000-2,50,000 vehicles
(~70% of TIV) to be replaced, if
the current proposal
(scrappage of >20-year
vehicle) is adopted. The benefit
of favourable macro factors
will be accentuated by new
launches like 41 tonne MAV
(4123), 25 tonne tipper (2532) &
introduction of LCV products
post FY20E to fill the white
space. We expect total M&HCV
& LCV volumes of ALL to grow
~12.5% & 21% in FY18-20E.
Focus on non-cyclical business to
yield positive outcome
The current business mix of
ALL is at: truck-72%, bus-7%,
5 June 2018

e x p o r t - 9 % , L C V- 7 % a n d
defence-3%. The defence
business has grown ~35%
while exports have grown 38%
in FY18. ALL is looking to de-
volatilise its business in the
next three to five years, by
growing higher margin
aftermarket (from 10% to 30%
of sales). The aftersales will be
aided by an increasing dealer
network (M&HCV- FY14-649 to
FY18-2894; LCV-FY14-300 to
FY18-465). In the defence
business, the company has
won 23 of 27 tenders in the last
two years. These tenders have
a revenue potential of ` 5000
crore in the next few years.
ICICIdirect Money Manager
STOCK IDEAS
Overall, we expect EBITDA
margins of 11.3%, 11.5% for
FY19E, FY20E, respectively.
Ahead of the curve
The management initiatives to
cut costs, reduce debt,
improve working capital cycle,
divest non-core assets and fill
product gaps have yielded
results in terms of meaningful
market share gain and
consistently strong financial
performance. Our earnings are
expected to grow at a CAGR of
32% in FY18-20E. We value the
stock on an SOTP basis, to
arrive at a target price of ` 180.
We have a BUY rating on the
stock
6 June 2018
 STOCK IDEAS

Key Financials
` crore FY17 FY18 FY19E FY20E
Net Sales 20019 26248 32886 39047
EBITDA 2203 2739 3715 4477
Net Profit 1223 1563 2245 2715
EPS 4.3 5.3 7.7 9.3

Valuations Summary
FY17 FY18 FY19E FY20E
P/E 27.1 27.2 19.0 15.7
Target P/E 41.8 33.7 23.4 19.4
EV / EBITDA 18.8 13.8 10.1 8.0
P/BV 6.8 6.0 4.9 4.1
RoNW 25.0 21.9 26.0 25.9
RoCE 23.9 28.5 34.9 35.4

Stock Data

Stock Data ` crore

Market Capitalization (` Crore) 41,551.6
Total Debt (FY18) (` Crore) 417.1
Cash and Cash Equivalent (FY18) (` Crore) 1,033.7
Enterprise Value (` Crore) 40,935.0
52 week H/L (`) 168/90
Equity Capital 292.7
Face Value `1

ICICIdirect Money Manager 7 June 2018


Key risks include:
Slowdown in the overall demand
environment might impact its
performance
Though, we believe the
domestic M&HCV industry has
multiple catalyst in terms of
growth over the next couple of
years, any slowdown in
demand due to regulatory
change or postponement of
demand (purchases) by the
fleet operators (due to rise in
interest & fuel cost in the near
term) might impact ALL's
ICICIdirect Money Manager
STOCK IDEAS
revenue growth going
forward.
Higher raw material cost + Intense
competition = could impact its
margin
We believe if ALL is unable to
pass on the rise in input cost to
its consumers its margins
might get impacted.
A d d i t i o n a l l y, t h e i n t e n s e
competition in the market,
might result into discounts &
offers which could impact its
overall market share and
margin.
8 June 2018
 STOCK IDEAS

ANALYST CERTIFICATION
We /I, Nishit Zota, MBA & Vidrum Mehta, MBA Research Analyst, authors and the names subscribed to this report, hereby certify that all of
the views expressed in this research report accurately
reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or
indirectly related to the specific recommendation(s) or view(s) in this report.
Terms & conditions and other disclosures:
ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock
brokering and distribution of financial products. ICICI Securities Limited is a Sebi registered Research Analyst with Sebi Registration
Number – INH000000990. ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India's largest private sector bank and has its
various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund
management, etc. (“associates”), the details in respect of which are available on www.icicibank.com.
ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in
India. We and our associates might have investment banking and other business relationship with a significant percentage of companies
covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their
relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.
The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report
and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way,
transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written
consent of ICICI Securities. While we would endeavour to update the information herein on a reasonable basis, ICICI Securities is under no
obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI
Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such
suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be
acting in an advisory capacity to this company, or in certain other circumstances.
This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has
been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall
not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
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Securities will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal,
accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The
securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment
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The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI
Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not
necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before
investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are
not predictions and may be subject to change without notice.
ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have
been mandated by the subject company for any other assignment in the past twelve months.
ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period
preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate
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ICICI Securities or its associates might have received any compensation for products or services other than investment banking or
merchant banking or brokerage services from the companies mentioned in the report in the past twelve months.
ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report.
ICICI Securities or its associates or its analysts did not receive any compensation or other benefits from the companies mentioned in the
report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts and
their relatives have any material conflict of interest at the time of publication of this report.
It is confirmed that Nishit Zota, MBA & Vidrum Mehta, MBA Research Analyst, of this report have not received any compensation from the
companies mentioned in the report in the preceding twelve months.
Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service
transactions.
ICICI Securities or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the
Company mentioned in the report as of the last day of the month preceding the publication of the research report.
Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial
ownership in various companies including the subject company/companies mentioned in this report.
It is confirmed that Nishit Zota, MBA & Vidrum Mehta, MBA Research Analyst, do not serve as an officer, director or employee of the
companies mentioned in the report.
ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in
this report.
Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report.
We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research
Analysis activities.
This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any
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described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this
document may come are required to inform themselves of and to observe such restriction.

ICICIdirect Money Manager 9 June 2018


Bandhan Bank - Best yields with lower cost of funds; unique model
Company Background
Bandhan started as Bandhan
Konnagar in 2001 as a non-
governmental organisation
(NGO) providing microfinance
services to socially and
economically disadvantaged
women in rural West Bengal.
Bandhan Financial Services
(BFSL) started its microfinance
business in 2006. The NGO
transferred its microfinance
business to BFSL in 2009. On
April 9, 2014, RBI granted an in-
principle approval to BFSL to
set up a scheduled commercial
bank in the private sector.
Upon receipt of the in-principle
approval, BFSL and Bandhan
Bank entered into a business
transfer agreement to transfer
all of BFSL's existing
microfinance business,
including all assets, liabilities,
accumulated profits and entire
infrastructure, along with a
wide consumer base to the
bank. By the time BFSL
transferred its microfinance
business to the bank, it was
ICICIdirect Money Manager
STOCK IDEAS
India's largest microfinance
company with AUM of ~` 8309
crore and ~70 lakh customers.
With historical strength in the
microfinance segment,
Bandhan Bank, which began
operations on August 23, 2015,
is now a commercial bank
focused on serving under-
banked and under-penetrated
markets in India.
Bandhan Bank is a unique
business model of high
yielding micro finance loan
portfolio (94% priority sector
fulfilment) and low cost
deposit franchise with 34.3%
CASA offered in the ambit of a
commercial bank. It was the
only MFI to receive a universal
banking licence from the RBI in
2014. Bandhan Bank, with 13-
14% market share, operates
936 branches and 2,764
dedicated doorstep services
centres servicing ~1.3 crore
customers in 33 states. East
and northeast (West Bengal,
B i h a r, A s s a m ) a r e i t s
stronghold. FY18 AUM was at `
10 June 2018

32340 crore a PAT at ` 1346
crore.
Investment Rationale
Consistent track record of quality
growth, banking adds positive leg
Bandhan MFI was one of the
few institutions to sail through
the AP crisis (2011),
demonetisation (2016), farm
loan waivers, etc. It has
demonstrated stellar growth at
~90% CAGR in those 10 years.
Even in the last five years,
advances grew at 51% CAGR.
In bank, AUM has grown from `
15,578.4 crore as of FY16 to `
32,340 crore as of FY18 while
customer base has increased
to ~1.3 crore. Micro credit
forms 86% of loan book while
retail, SME together are still
small. Asset quality is strong at
1.2% GNPA ratio. We expect
38% CAGR in loans to ` 61546
crore by FY20E.
Strong deposit franchisee in short
span, high CASA offers low CoF
Bandhan Bank has focused on
building a strong deposit base
and has grown from zero as of
August 23, 2015, to ` 33,869
crore in FY18. Current and
savings account deposit
ICICIdirect Money Manager
STOCK IDEAS
(CASA) was at ` 11,617 crore,
constituting 34.3% of deposits.
CASA provides stable low-cost
funding with CoF now at 6.7%.
We expect deposits growth at
~31% with CASA ratio ~36%.
Only 6% of deposits come
from MFI clients. Majority of
deposits come from bank
branch customers while 80%
of the same is retail.
Strong NIMs, low cost-to-income
lead to above par return ratios, BUY
Net interest margin (NIM) was
at 9.8% for FY18. With low cost
funds, we expect NIM to
sustain at ~9% even as the
bank starts building non-micro
loans. Along with higher NIM,
low operating cost at ~35% C/I
ratio remains its key
differentiator, high RoA driver.
Its opex to AUM ratio was at
4% for FY18. We expect high
RoA of 3.5-4%, RoE >20% to
sustain. With almost double
NIM, RoA vs. HDFC Bank &
lower C/I ratio, with no legacy
corporate portfolio pains, we
believe Bandhan Bank will
command higher premium to
HDFC Bank. At CMP of ` 490,
the stock is available at 4.4x
FY20E ABV of ` 111. On P/E
11 June 2018
 STOCK IDEAS

basis, it is available at 22.4x ABV, we arrive at a target price

FY20E earnings of ` 22 EPS. of ` 600. We initiate coverage
Valuing the bank at 5.4x FY20E with a BUY recommendation.
Key Financials
` Crore FY17 FY18E FY19E FY20E
NII 2,403 3,032 4,348 5,790
PPP 1,793 2,430 3,567 4,656
PAT 1,112 1,346 2,018 2,612

Valuations Summary
FY17 FY18E FY19E FY20E
P/E 48.3 43.4 29.0 22.4
Target P/E 59.1 53.2 35.5 27.4
P/ABV 12.2 6.3 5.3 4.4
Target P/ABV 15.0 7.8 6.6 5.4
P/BV 12.1 6.2 5.2 4.3
RoE (%) 28.6 19.5 19.6 21.1
RoA (%) 4.4 3.6 4.0 4.0

Stock Data

Market Capitalization (` Crore) 58,232

Networth 9,382
52 week H/L (`) 540 / 455
Equity Capital 1,193
Face Value 10.0
DII Holding (%) 1.9
FII Holding (%) 10.1

ICICIdirect Money Manager 12 June 2018


Key risks include:
Concentration risk as substantial
operations in eastern India
A substantial proportion of
Bandhan's branches & DSCs along
with a significant portion of its
deposits and advances are in East
and Northeast India and, in
particular, the states of West
Bengal, Bihar and Assam. As on
December 17, ~81% of loans,
69% of DSCs and 65% of
branches are from these regions.
Due to such concentration, the
success and profitability of the
overall operations may be
disproportionately exposed to
regional factors that include,
among others, increased
competition as more players enter
these geographies, general
economic conditions and other
developments including political
unrest, floods and other natural
calamities.
Continuity of management team and
skilled personnel
The company's performance is
highly dependent on the
continued services of its
management team. In particular,
this includes the efforts of its
Managing Director & CEO along
ICICIdirect Money Manager
STOCK IDEAS
with other experienced members
of its Board of Directors & senior
management. In accordance with
requirements prescribed by RBI,
the retirement age is 70 years for
the managing director, CEO and
whole-time directors of the Bank.
Bandhan's Managing Director is
57 years old. Any loss of a key
personnel or inability to replace
key personnel may restrict its
ability to grow and manage the
overall running of operations.
Reduction in promoter stake to 40% as
per RBI norms
As per RBI's new bank licensing
guidelines, Bandhan Bank's
promoter – Bandhan Financial
Holdings Ltd is required to reduce
its shareholding in the bank to
40% within the first three years of
commencement of operations,
ending in August 2018. As of
March 2018, the promoter holding
was at ~82.3%. The management
has indicated at continuous
engagement with the RBI for an
extension of the timeline.
Rejection of an extension on part
of the central bank could entail
huge equity supply and thereby
substantial dilution in
performance parameters.
13 June 2018
 STOCK IDEAS

ANALYST CERTIFICATION
We /I, Kajal Gandhi, CA, Vasant Lohiya, CA and Vishal Narnolia, MBA, Research Analysts, authors and the names subscribed to this report,
hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We
also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in
this report.
Terms & conditions and other disclosures:
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ICICIdirect Money Manager 14 June 2018

 FLAVOUR OF THE MONTH

Q4FY18 results special: Know who performed how

Quarterly financial results are a periodical review of the performance of India

Inc. Carrying forward the positive current from the last quarter, the
performance of Sensex companies was robust in Q4FY18. With forecast of
normal monsoon 2018 and firm rural demand amid a pick-up in industrial
activity, we expect Sensex to stage an impressive earnings recovery, growing
in excess of 20% CAGR over FY18-20E. The research team at ICICIdirect has
analyzed the fourth quarter results put out by different companies. While
sectors like auto, capital goods, cement, FMCG, real estate, media, metals
and pharma reported positive performance; banking, oil and gas, building
material & telecom failed to show robust growth. Here we provide you a
report card of various sectors and what promise they hold for investors in the
near future. ….
Large caps lead earnings recovery…
Ÿ Sensex companies (ex- operating leverage benefits
banking space) continued (up 250 bps) on account of
their positive momentum sweating of assets with
consequent increase in
with Q4FY18 the first quarter
EBITDA margins by 28 bps to
that was marked by double
19.1% in Q4FY18.. On a full
digit bottomline growth. It is
year basis, in FY18, sales
largely attributable to robust
increased 10.9% YoY resulting
consumer demand and
in bottomline growth of 10%
successful economic
YoY.
transformation post
demonetisation and GST. For Ÿ At a broader level (listed
S e n s e x c o m p a n i e s ( e x- universe), the earnings
banks), net sales in Q4FY18 seasons was marred by losses
are up healthy 15.7% YoY to at large public and private
Rs. 538,048 crore. Companies sector banks, owing to
continued to witness falling increased provisioning
gross margins (down 186 bps) following a RBI directive.
on account of a rise in However, with much of the
commodity prices, which was pain already recorded and IBC
more than compensated by (Insolvency and Bankruptcy

ICICIdirect Money Manager 15 June 2018


Code) resolutions underway,
we expect incremental
slippages to be contained
aiding moderate provisions.
This, coupled with improving
credit growth, will enable
profitability to improve in PSU
and corporate banks over
FY19-20E.
Ÿ On the sectoral front, in
Q4FY18, overall auto volumes
increased 23.9% YoY mainly
due to low base & strong
growth momentum across
segments. In the FMCG space,
double digit volume growth is
encouraging. This, coupled
Source: ICICIdirect Research
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
with ~15% volume growth in
the cement space, depicts
robust demand prospects
domestically. In the capital
goods space, robust execution
led to healthy double digit
growth in sales amid robust
build-up of order book. Going
forward, with forecast of normal
monsoon 2018 and firm rural
demand amid a pick-up in
industrial activity (increased
sales of M&HCV, cranes), we
expect Sensex to stage an
impressive earnings recovery,
growing in excess of 20%
CAGR over FY18-20E
16 June 2018

On a YoY basis, in Q4FY18, ex
banks, the Sensex topline
increased convincingly at
double digits at 15.7% YoY
(highest in recent past).
EBITDA growth, for the
quarter, came in at 17.3% YoY
thereby exceeding topline
growth primarily tracking 30
bps expansion in EBITDA
margins to 19.1%. The margin
Industry wise profit
movement and revenue
Topline growth for the quarter
was led by the commodity
space viz. oil & gas (up 32.2%
YoY) and consumer driven
auto space (up 19.0% YoY).
Pharma & telecom continued
their underperformance with
topline growth of -2.0% & -
10.5%, respectively. FMCG
performance looks muted (up
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
improvement was factoring in
lower overhead costs mainly
other expenses (250 bps),
which was partly compensated
by an increase in raw material
costs (190 bps) on account of
an increase in commodity
prices and higher employee
costs (up 30 bps YoY). PAT in
Q4FY18 was up a healthy
15.0% YoY
1.8% YoY) despite robust
growth at HUL (up 11.1% YoY)
primarily tracking de-growth at
ITC (down - 4.6% YoY). Tier-I IT
companies witnessed average
growth of 1.2% QoQ in
constant currency terms in
Q4FY18. Cross currency
provided strength of ~120-190
bps to dollar revenue growth to
2.9% sequentially
17 June 2018
 FLAVOUR OF THE MONTH

Industry wise aggregate revenue (Sensex companies) (Rs. crore)

Bottomline growth, on the telecom reported de-growth at

other hand, witnessed a t h e PAT l e v e l . Te l e c o m
divergence. Growth was led by operators continued to bleed
m e t a l s ( u p 1 2 9 % Yo Y ) in Q4 on account of continued
primarily tracking loss to profit price erosion (fresh round of
at Tata Steel, followed by the price cut by Jio in January
oil & gas space (up 24.1% YoY, 2018) and international IUC cut
upbeat crude price). IT & impact.
Industry wise aggregate net profit (Sensex companies) (Rs. crore)

Sector specific takeaways from due to low base of last year

quarter
Auto & auto ancillary
Overall auto volumes increased
23.9% YoY in Q4FY18 mainly
(impacted by demonetisation) &
strong growth momentum
across segments. In terms of
segments, 2-W reported healthy
growth of 25.2% YoY, driven by

ICICIdirect Money Manager 18 June 2018


both motorcycle & scooters (up
27.1% YoY & 24.1% YoY
respectively) supported by a
revival in rural sentiment in key
underpenetrated states. The 3-
W saw strong demand revival
as volumes grew 84.2% YoY,
led equally by domestic
(attributable to favourable
industry development) & export
market. On the flip side, PV
segment remained subdued, up
6.7% YoY. Thus, overall revenue
of I-direct auto universe [ex Tata
Motors (TML)] grew 25.3% YoY,
with OEM & ancillary revenue
growth was at ~23.7% YoY &
~27.7% YoY, respectively
The EBITDA margin of our
universe (ex-TML) increased,
as OEM margin expanded
while ancillary margin
contracted. We believe higher
volumes resulted into positive
operating leverage for OEMs.
This was partly offset by higher
input cost resulting into margin
expansion.
Among our coverage OEM
universe, the results of Ashok
Leyland & Hero were in line
with our estimates on the
operational front. MSIL
reported higher other expense
mainly due to a rise in freight
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
cost, expenses related to
participation in Auto Expo &
Swift model launch thereby
impacting its operating
margin. Eicher Motors took an
impairment loss of Rs. 187
crore towards winding down of
operations of Eicher Polaris.
TML disappointed with its
results. The management
lowered JLR EBIT margin
guidance to 4-7% over FY19-
21E
On the ancillary front, Apollo
Tyres & JK Tyre reported
healthy volume driven revenue
growth in their domestic
business & margin expansion
o n a Yo Y & Q o Q b a s i s .
However, Balkrishna Industries
reported strong volume driven
revenue growth. Its margins
were impacted due to higher
crude derivative price.
Among battery players, Exide
reported a strong operational
performance. However, Amara
Raja disappointed with its
results on all parameters. The
integration of PKC group
(revenue of Rs. 2,174 crore)
lifted Motherson Sumi's
revenue - up 35.8% YoY
(adjusted growth is at 17.3%
19 June 2018

YoY). However, a higher start-
up cost impacted its margins.
Bosch also reported a decent
performance led by healthy
growth in its automotive
segment
Banking
Q4FY18 has been one of the
worst quarters for the banking
industry in terms of asset
quality led by frauds, new NPA
framework introduced by RBI
(discarding past restructuring
formats), NPA divergences &
absence of any resolution in
large NCLT cases referred
earlier
Absolute GNPA (Gross Non-
Performing Advances) of PSU
banks increased 31% YoY
(15% QoQ) to Rs. 896601 crore
while that of private banks
increased 39% YoY to Rs.
127985 crore. GNPA ratio of
the industry is ~11.8% as on
FY18
Corporate based private banks
like Axis Bank witnessed
heightened NPA pressure
along with most PSU banks
Rise in slippages led to large
interest reversals, which
impacted NII growth of the
sector, at 1.3% YoY. For PSU
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
banks, NII declined 4.4% YoY.
This was despite healthy credit
growth of ~10% YoY
Pr o v i s i o n s i n Q 4 a l m o s t
doubled QoQ to Rs. 148276
crore. This was led by PSU
banks. Accordingly, the sector
reported highest quarterly loss
of Rs. 55648 crore with PSU
bank loss at Rs. 62681 crore.
Private Banks continued to
report a relatively healthy set of
numbers owing to their retail
orientation. They continue to
grab market share from PSU
banks. They managed to report
PAT of Rs. 7033 crore in Q4
Capital goods
On an overall basis, revenue
for capital goods companies
grew 10.8% YoY in Q4YF18
backed by robust execution
trends across all EPC
companies. EBITDA margins
were flattish YoY. Interest cost
also witnessed a sharp decline
of 18% YoY due to working
capital improvement and debt
repayment during the quarter
On the order inflow front, L&T
announced order wins in to the
tune of Rs. 49,600 crore with
strong order wins in the
domestic market. Strong
20 June 2018

tendering in the domestic
market helped L&T report 7%
YoY growth in order inflows for
FY18. Going ahead, the
company has guided for a 10-
12% order inflow growth for
FY19E
In the midcap space, KEC was
key performer as order inflows
for FY18 were at ~Rs. 15098
crore mark coupled with
strong revenue growth of
28.6% YoY along with an
improvement in the working
capital cycle
Bearing companies like SKF,
Timken and NRB reported
healthy performance with
topline growth of 10-25%
coupled with EBITDA growth of
20-55%. Strong performance
was mostly on account of
robust offtake from the auto
segment and recovery in
industrial segment of the
business
Cement: Healthy volume
growth, high energy costs
dent margins
Cement companies under our
coverage reported healthy
volume growth of 15.5% YoY
mainly led by higher
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
government spending and
b e t t e r s a n d a v a i l a b i l i t y.
Excluding UltraTech (that had
merged Jaypee) volume
growth was up 8.5% YoY. In
terms of regional performance,
regions like Rajasthan,
Himachal Pradesh and Gujarat
were impacted by sand & water
availability and RERA impact
while rest of the regions
witnessed healthy demand
from infrastructure and
individual house builders.
Realisation for the quarter was
up 4.8% YoY led by healthy
demand. Consequently, total
revenue of the sector increased
21.1% YoY toRs. 24,613 crore.
In terms of margins, higher
power cost (led by a sharp rise
in pet coke prices) and freight
cost (due to increase in diesel
prices, change in sales pattern
and strict adherence to
overloading in northern region)
have led to a fall in margins
(down from 17.5% in Q4FY17 to
17.3% in Q4FY18)
Cement realisation in our
coverage universe increased
4.8% YoY during the quarter
mainly due to change in sales
mix (from ex-factory to FOR),
low base and better pricing in
21 June 2018

the western & central region
EBITDA/t in our coverage
universe increased 3.6% YoY
to Rs. 823/t mainly due to low
base. Among the coverage
universe, JK Lakshmi and
Cement volumes & capacity utilization trends
Source: ICICIdirect research
Consumer Durables
I-direct CD universe (excluding
Lloyd's business in Havells)
recorded sales growth of
~13% YoY (12% QoQ) during
Q4 led by strong sales growth
of ~15% in the paint category
(volume were up ~12% YoY).
Under the piping segment,
Supreme Industries and Astral
Poly recorded sales growth of
~15% and ~11%, largely
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
Heildelberg reported an
increase of 45.2% YoY and
55.5% YoY mainly led by
operating leverage benefit and
low base in last year
driven by non-core business
(industrial and adhesive
segments, respectively)
However, lower-than-expected
volume growth of the piping
segment was mainly due to a
slow pick-up in demand from
agriculture and real estate
segment in Q4FY18. On the
other hand, untimely rains in
most parts of the country
coupled with pre-buying activity
in Q3FY18 (owing to a change in
22 June 2018

energy ratings) translated into
lower volume offtake in Q4FY18
for Voltas, Symphony and
Lloyds, respectively. As a result,
Symphony sales declined
~ 1 4 % Yo Y w h i l e Vo l t a s
recorded flattish sales during
Q4FY18
On the margin front, I-direct CD
universe recorded flattish
margin on a YoY basis at 15.5%
as inflationary pressure on raw
material (higher prices of crude
derivatives, copper YoY) had
kept gross margins under
check.
FMCG
FMCG companies witnessed
strong growth in the March
quarter led by robust volume
growth coupled with a
stabilising trade channel.
Aggressive advertisement and
promotions also aided growth.
Our coverage universe
reported 4.8% growth on a
comparable basis (net of
excise in base quarter). After
several quarters of stress in the
aftermath of demonetisation
a n d r o l l o u t o f G S T, t h e
consumer goods sector seems
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
to be back on the growth track
led by a pick-up in rural
consumption
We expect consumer demand
to remain resilient in urban
India as well. We believe
companies would continue to
witness strong volume growth
with the government's
increasing thrust on improving
rural income levels and
expected normal monsoon in
2018. In our coverage
universe, HUL, Nestlé, Varun
Beverages and Jyothy
Laboratories witnessed 10.8%,
10.6%, 24.5% & 16.7%
comparable sales growth,
respectively, led by robust
volume growth
Majority of the companies
reported strong double digit
growth in EBITDA led by a
favourable base, soft raw
material prices and
premiumisation. Most
companies in our universe
reported gross margin
expansion. Our coverage
universe has seen a 240 bps
expansion in operating
margins. Though inflation is
expected to go up on the back
of rising crude oil and higher
23 June 2018

minimum support prices (MSP)
announced by the Centre,
companies would be able to
mitigate the pressure through
calibrated price increases
Led by higher EBITDA, net
profit for our coverage
universe companies has seen
healthy growth of 14.8%.
FMCG behemoths HUL and ITC
have seen net profit growth of
Source: ICICdirect Research
Information Technology
Tier-I IT companies witnessed
average growth of 1.2% QoQ
in constant currency terms in
Q4FY18 while cross currency
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
17.9% & 9.9%, respectively. In
order to strengthen growth,
companies are focusing on
new products launches. We
believe FY19E would further
witness new product launches
in various segments.
Simultaneously, advertisement
spend in FY19E may go up with
companies investing in new
launches
provided strength of ~120-190
bps to dollar revenue growth to
2.9% QoQ
Analysing the growth drivers
for Tier-I IT companies in this
24 June 2018

quarter, Europe continued to
lead growth in the last three to
four quarters outpacing the
US, the largest contributor
among geographies. Among
verticals, growth in banking &
financial services (BFSI) is yet
to see a pick-up while energy
and manufacturing saw good
growth in the quarter. With
movement of the IT landscape
more towards digital &
emerging technologies, digital
forms ~22-30% of overall
revenues with healthy double
digit growth and continues to
inch up
Citing revenue outlook for
FY19E, Infosys and HCL Tech
guided for revenue guidance of
6-8% and 9.5-11.5% in CC
terms with organic growth
(~5% in FY19E) muted in HCL.
Going by management
c o m m e n t a r y, F Y 1 9 E i s
expected to better compared to
FY18 owing to an improvement
in BFSI segment and scaling up
of digital revenues
On the operating margin front, it
was a mixed bag performance
in Tier- I IT companies. Infosys'
EBIT margins expanded 40 bps
to 24.7% while Wipro IT
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
services margins declined 40
bps QoQ to 14.4% on account
of one-off. In terms of EBIT
margin trajectory, for FY19E,
TCS (26-28%) and HCL Tech
(19.5-20.5%) retained their
margin guidance while there
was disappointment as Infosys
lowered its EBIT margin range
to 22- 24% for FY19E
Infrastructure
Our construction universe
companies continue to benefit
from a strong set of opportunities
across verticals. Consequently,
the order book of our
construction companies
remained buoyant with strong
order inflows during the year.
However, on the financial front,
universe reported mixed set of
results. While NCC's topline grew
11.9% YoY to Rs. 2394.8 crore,
NBCC's topline fell 6.9% to Rs.
2184.2 crore. Consequently, the
topline of our construction
universe grew moderately by
3.2% YoY to Rs. 6227.2 crore.
On the operational front, there
was a 60 bps YoY expansion in
EBITDA margin to 10.4% on
account of exceptionally high
25 June 2018

margins for NCC. Despite
margin expansion, the
bottomline of our construction
universe fell 10.3% YoY to
Rs.273.7 crore owing to 56.1%
YoY PAT de-growth of Simplex
Infra
Our road universe players
have benefited from strong
awarding from NHAI & MoRTH.
Also, execution has picked up
p a c e . C o n s e q u e n t l y, t h e
topline of our road universe
grew 9.0% YoY to Rs. 3947.9
crore. Also, toll collections on a
like-to-like basis grew 16.0%
YoY to Rs. 614.9 crore in
Q4FY18. Furthermore, EBITDA
margins contracted 280 bps
YoY to 26.0%. However, the
bottomline of our road
universe reported significant
growth of 40.6% to Rs. 526.6
crore due to 231% YoY growth
in the PAT of PNC Infratech
Building materials
Our building material coverage
universe posted a weak
performance. The growth was
largely impacted by a delay in
implementation of e-way bill,
which slowed down the
anticipated shift from
unorganised to organised
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
segment. However, with the
interstate e-way bill in place
and passage of intrastate e-
way bill by July, 2018, we
expect this anticipated shift to
hasten and benefit organised
players. Overall, e-way bill
implementation would be a
key growth monitorable
ahead. While revenues grew
1.9% Rs. 2258.0 crore, EBITDA
margins contracted 160 bps
YoY to 13.6% amid rising input
costs while PAT de -grew
18.4% YoY to Rs. 157.8 crore
In Q4FY18, our tiles universe
reported moderate volume
growth of 3.7% YoY to 36.2
M S M . H o w e v e r, o n t h e
financial front, results were
disappointing. Revenues de-
grew 0.2% YoY to Rs. 1276.7
crore as realisations softened.
Further, with pressure of rising
fuel prices, EBITDA margins
contracted 100 bps YoY to
13.1%. Hence, PAT declined
significantly by 6.5% YoY. On
the positive side,
managements indicated that
realisations have bottomed out
in Q4FY18
In Q4FY18, our plywood
universe reported a mixed
26 June 2018

performance. While volume
performance was decent with
Century Ply & Greenply
reporting 8.7% and 5.3%
volume growth, respectively, a
significant drop in realisations
impacted topline. Consequently,
the topline of our plywood
universe grew moderately by
4.9% YoY to Rs. 981.3 crore. On
the operational front, EBITDA
margins declined 230 bps YoY to
14.3% amid stiff competition
and rising input costs.
Consequently, the bottomline
de-grew significantly by 30.1%
YoY to Rs. 68.4 crore
Real estate
Q4FY18A witnessed a gradual
improvement in the real estate
sector. Furthermore, new
launches are expected to pick
up from FY19E onwards. Our
real estate coverage universe
reported strong volume
performance with volume
growth of 15.6% QoQ to 15.9
lakh sq ft (lsf). Sobha's volumes
grew 8.8% QoQ to 10.16 lsf
while Mahindra Lifespace's
sales volumes grew 44.0%
QoQ to 3.6 lsf. However,
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
Oberoi's volumes de-grew
13.6% QoQ at 1.3 lakh sq ft,
given the absence of new
launches
Metals
For Q4FY18, the metals &
mining sector reported a
healthy performance primarily
driven by higher realisations.
The topline of the coverage
u n i v e r s e ( e x- C o a l I n d i a )
increased 16% YoY and 13%
QoQ, while the aggregate
sector EBITDA registered
growth of 19% YoY and 21%
QoQ. The corresponding
EBITDA margins was at 25.6%,
up 55 bps YoY and 185 bps
QoQ
The ferrous space reported
outperformance on the back of
healthy realisations. Tata Steel
reported a healthy Q4FY18
performance. The Indian
operations posted sales volume
of 3.03 million tonnes (MT)
while European operations
reported steel sales of 2.55 MT.
Domestic operations' (TSI)
EBITDA/tonne increased QoQ
to Rs. 15872/tonne. European
operations reported a healthy
27 June 2018

EBITDA/tonne of US$70/tonne
On the back of healthy prices of
non-ferrous metals and crude,
Vedanta reported a steady
performance for Q4FY18
wherein the top line increased
22.7% YoY and 13.4% QoQ to
Rs. 27630 crore. The
corresponding EBITDA margin
was at 28.4%
Graphite electrode majors
reported another upbeat
performance for Q4FY18
driven by higher realisations.
Graphite India reported sales
of Rs. 1212.2 crore. The
EBITDA came in at Rs. 668.6
crore (implying EBITDA margin
of 55.2%). HEG also reported a
robust performance. Net sales
were at Rs. 1295.5 crore (up
4 0 1 % Yo Y ) w i t h E B I T DA
margin of 73.6%
Oil & gas
The oil & gas sector reported a
steady performance in Q4FY18.
The results of upstream
companies were largely in line
with our estimates on the oil &
gas production and revenues
front, benefiting from higher
crude oil prices. While revenues
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
increased ~4% QoQ, EBITDA
declined ~9% QoQ and came in
below our estimates. The miss
on the operational front was
mainly on account of inflated
costs related to workover
operations, water injection,
repairs & maintenance and
d e c o m m i s s i o n i n g. G o i n g
forward, uncertainty looms
large with regard to subsidy
sharing and windfall taxes for
upstream oil companies
Oil marketing companies
reported a mixed performance
on the operational front with
core GRMs coming in below
our estimates. On the marketing
front, product sales growth
remained healthy at ~7% YoY
and flat QoQ, temporarily
overcoming the threats from
increased competition from
private players
Pharmaceuticals
Aided by a low base of Q4FY17,
the I-direct healthcare universe
reported strong double digit
profitability growth. Revenues
also grew in high single digits.
On the geographical front, the
challenging environment in US
28 June 2018

generic space continued to
impact overall US growth.
However, excluding US, Brazil
(country specific issues) most
other geographies have
reported strong growth on the
back of new launches and
favourable currency movement.
Domestic formulations also
grew in double digits, in line with
our estimates. Overall, I-direct
universe revenues were at Rs.
40,196 crore, up 7.4% YoY
Despite overall decent growth,
seven out of 19 companies
under coverage registered
negative or muted revenue
growth in Q4FY18 due to
continued pricing pressure in
the US.
Power
Regulated utilities reported a
muted performance in terms of
revenue and profitability. NTPC
reported ~4423 MW of
capacity addition in FY18 while
the target for FY19E seems
encouraging in terms of
capacity addition. On the
Q4FY18 performance, the
generation growth at 7.5% YoY
(PLFs of coal based stations
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
improved 210 bps to 79%) was
in line but EBIDTA was below
estimates on account of higher
other expenses leading to
flattish profitability
Power Grid also reported asset
capitalisation in FY18 that was
below expectations at Rs.
28,000 crore given some delay
in receipt of approvals which
impacted capitalisation.
Revenues and PAT grew below
estimates on account of lower
transmission revenues and
higher-than-expected other
expenses
Retail
A strong wedding season and
low base effect of
demonetisation resulted in
decent topline growth for the
retail sector in Q4FY18. On the
profitability front, lower
discounting days (preponing of
end of season sale in Q3FY18)
and efforts towards cost
optimisation, boosted the
EBITDA margins for the quarter.
Hence, revenues for our retail
coverage universe grew 10%
while EBITDA grew robustly by
54% YoY in Q4FY18
29 June 2018

Textiles
Softening of cotton prices by
~7% YoY to Rs. 113/kg, led to
improvement in margins for
textile players in Q4FY18.
EBITDA margins for Vardhman
Textiles recovered to 17.2% in
Q4FY18 (Q3FY8: 13.7%,
Q2FY18: 13.0% and Q1FY18:
14.1%). EBITDA margins for
Page, Siyaram and Rupa,
expanded 450 bps, 270 bps
and 550 bps, YoY, respectively
On the balance sheet front,
except for Page, stretching of
working capital days was
apparent in Q4FY18 on
account of issues related to
GST implementation.
Extension of credit period to
the dealers and distributors led
to higher receivable days. We
believe a gradual stabilisation
of trade channels will ease
working capital requirements
and generate healthy cash flow
from operations in FY19E
Logistics
Q4 continued to report a
strong quarter for surface
logistics players. The TCI pack,
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
w h i c h i n c l u d e s Tr a n s p o r t
Corporation of India (TCI) and TCI
Express (TCIEL), led the growth
in the I-direct surface logistics
universe.
Overall I-direct logistics universe
grew 12% YoY (up 6% QoQ) to
Rs. 3750 crore. TCI, TCIEL and
BlueDart aided the profitability
growth of the universe, which
led EBITDA, PAT for the universe
to grow 12% and -10% to Rs. 601
crore and Rs. 422 crore,
respectively
Media
The media sector performance
in Q4 was marked by strong
show by multiplexes and
broadcasting while segment like
print had a weak outing as it
continues to struggle in localised
ad growth.
Telecom operators
Telecom operators continue to
bleed in Q4 on account of
continued price erosion (fresh
round of price cut by Jio in
January 2018) and international
IUC cut impact. This led to
continued downward trend in
30 June 2018

ARPU that had an impact on
EBITDA and profitability.
In the tower space, Infratel
witnessed the impact of gross
exits of 9813 tenancies,
reflecting the pressure of
consolidation and exits of
marginal players. We also note
that there remains further risk of
tenancy exits as Vodafone-Idea
merger gets completed. Sterlite
Tech continued to report strong
ICICIdirect Money Manager
FLAVOUR OF THE MONTH
number, reporting ~19.7% YoY
growth in topline while
operating margins came in at
26% (200 bps better than our
expectations) because of
revenue mix skewed towards
product business. Sterlite
remains a key beneficiary of
4G/5G infrastructure backhaul
led by optical fiber demand
globally and in India.
31 June 2018
 Tête-à-tête

We believe India's fundamentals remain solid

India has been a stand-out investment opportunity for domestic and global
investors ever since 2013 when global events led to a significant deterioration on
the country's fiscal position. Since then a series of policy measures have made the
economy better position to manage global stresses, says Jinesh Gopani, Head-
Equities, Axis Mutual Fund. Domestically, the risks are rising inflation due to
higher energy and food prices and deterioration in current account deficit, adds
Nimesh Chandan, fund manager, Canara Robeco Asset Management.

Jinesh Gopani Nimesh Chandan

Q. What is your take on current which to some extent have

market situation? Do you see the
markets to remain within existing
range or do you see a break-out in
either direction?
A. Jinesh Gopani - We continue to
believe markets will remain
volatile for the remainder of the
y e a r. F P I ` s h a v e b e e n
consistent sellers in the market
been balanced out by domestic
investors. Midcap and small cap
stocks which saw a sustained
rally in the preceding years are
currently seeing a repricing of
earnings potential. What is
interesting to note is quality
companies (regardless of size)
that we have been tracking and
have significant investments in

ICICIdirect Money Manager 32 June 2018


have seen limited falls or have
been stand out performers
during this volatile period.
Companies that have
consistently reported healthy
growth and have matched
investor expectations have
been perceived as 'companies
to incrementally invest' in
during volatile market
conditions such as one that we
currently see ourselves in.
Nimesh Chandan - Currently
the market is expected to be
range bound. After a strong
rally last year, the markets can
take a breather for some time.
Rising interest rates globally,
depreciation in EM currencies
and trade wars are likely to
keep global equity markets
under pressure. Domestically,
we expect pressure from rising
inflation mainly due to rise in
energy and food prices.
Elections, both state and
central are likely to add to
volatility at the end of the year.
On the good news, we see
improvement in earnings
growth in FY19 and FY20.
Major reforms undertaken by
the Modi government are likely
to start showing results. We
ICICIdirect Money Manager
Tête-à-tête
believe this volatility will
provide an opportunity to add
quality companies to the
portfolio at reasonable
valuations.
Q. What are the key risks to Indian
markets that one should be
watchful about?
A. Jinesh Gopani - Globally,
markets have seen the return
of volatility after a sustained
period of a low volatility
environment. This has
reflected in the Indian markets
as well. Currently markets have
been focusing on short term
news flow on a wide variety of
aspects ranging from geo
political tensions, oil prices, US
interest rates, and more locally
domestic political moves
amongst others.
Crude prices have hit a new 5
year' high of US$80. USD-INR
depreciated to Rs 67.5/US$ in
May from Rs66.5/US$ in April.
This coupled with a
deteriorating rupee has seen
domestic oil prices move to
their all-time highest levels.
Rising oil prices have once
again raised fears of inflation
33 June 2018

and fiscal slippage. If oil related
excise duties are reduced, the
deficit might widen.
FPI's have been sellers in the
market for the better half of the
current calendar year in line
with the overall global shift
away from risk assets in a flight
to safety. However, domestic
institutional investors and
retail participation in equity
markets have minimized to
some extent the intensity of
the fall. Should this support
deteriorate, we should see
significant volatility in the
markets.
With that being said, India has
been a stand-out investment
opportunity for domestic and
global investors ever since
2013 when global events led to
a significant deterioration on
the country`s fiscal position.
Since then a series of policy
measures have made the
economy better position to
manage global stresses. We
believe India`s fundamentals
remain solid. The economy
continues to remain highly
dependent on domestic
consumption and hence will
remain insulated from external
ICICIdirect Money Manager
Tête-à-tête
shocks.
Nimesh Chandan - The risks to the
market from the international
front are rising interest rates,
depreciation in Emerging
market currencies and trade
wars. Domestically, the risks
are rising inflation due to
higher energy and food prices
and deterioration in Current
account deficit.
Q. How has the Q4FY18 earnings
season panned out in your opinion?
A . Jinesh Gopani - Midcap
companies in general have
underperformed market
expectations this quarter. This is
reflective of their performance
over the last month. However,
company results for Q4 FY18
have seen improvement across
sectors that we cover. The IT
sector results point to selective
opportunities within the space
on the back of an improved
global outlook. Consumer
focused companies within
banking (Retail Banks &
NBFC`s), consumer staples and
discretionary companies have
continued to match investor
expectations. Consensus NIFTY
34 June 2018

earnings also did not see
significant negative surprises
unlike earlier years, highlighting
that there is confidence in a
likely step-up in growth going
forward.
Nimesh Chandan - The Q4FY18
results were below
expectations mainly due to
the drag on profits from the
banking sector. Corporate
banks reported a significant
jump in the slippages and
provisions which were at an
all-time high this quarter.
Companies in the consumer
sectors performed better
than expectations. Metals
and Oil and Gas continued to
deliver good results.
Q. What are your expectations in
terms of earnings growth for FY19?
A. Jinesh Gopani - We continue to
believe in the India growth
story and see green shoots in
corporate earnings. We believe
that the corporate sector is at
the cusp of a significant
earnings recovery in the
coming quarters. The long
term opportunities and secular
growth prospects are clearly
visible in many of the themes
ICICIdirect Money Manager
Tête-à-tête
that we are currently looking at.
We expect profit growth our
investment universe to grow
18-20% on average in the next
4 quarters.
Nimesh Chandan - We expect
earnings of the Nifty-50 Index to
grow at 20% CAGR for the next
two years. This is likely to be led
by recovery in contribution from
the banking sector due to sharp
decline in loan-loss provisions. We
also expect general demand
recovery in domestic consumption
sectors such as automobiles and
staples. A weaker Indian Rupee is
likely to support realizations and
profitability in global commodity
and services sectors.
Q. What are the key sectors or
themes that you are looking at this
time?
A. Jinesh Gopani - We remain
bullish on the rural theme and
the consumption space.
Improving trend in real rural
wage growth is directly
encouraging for the rural
consumption outlook and
indirectly for the aggregate
demand and for the investment
cycle. We currently find select
35 June 2018

opportunities in the rural
housing, and finance cyclical
businesses spaces which are
likely to be direct beneficiaries.
We have been positive on B2C
as compared to B2B for the last
several quarters due to their
underlying fundamental
strengths and significant
market opportunities. The
consumption space continues
to remain attractive and the
recent fall has been a good
buying opportunity in select
mid and large cap names. The
consumption space offers
opportunities in companies
with high quality businesses,
stable cash flows and steady
growth metrics.
N i m e s h C h a n d a n - We a r e
positive on consumption
growth, especially rural
consumption. With the
forecast of normal monsoon
and rising farm incomes, we
expect rural spending to pick
up. Consumer companies are
also beneficiaries of
implementation of GST as it
leads to market moving from
unorganized to organized
players. With the rise in interest
rates too, the consumer
ICICIdirect Money Manager
Tête-à-tête
companies that are cash rich
will be better placed than
leveraged sectors.
We are currently underweight
on Utilities, Metals, Telecom
and Oil and Gas.
Q. Tell us something about your
stock-selection strategy. What kind
of stocks do you prefer and what do
you avoid?
A. Jinesh Gopani - We primarily
follow bottom-up stock
selection approach with a
minimum 2-3-year view on
stocks. Bias towards high
quality and growth with strong
fundamentals are the key look
outs us to select companies for
any of our portfolios. Having
said that, competitive
advantage, pricing power and
right to win are underlying
elements which one needs to
assess crucially, since ROE,
market share, leadership are
derivatives of this.
To elaborate more, growth
aspect can be a quantitative
measure, wherein industry
growth, market penetration
and company specific growth
(both sales and profit), is
36 June 2018

measured over cycles. Our
perception on these pointers is
critical in our evaluation
process.
While quality is assessed from
both quantitative and qualitative
perspective. Under the
quantitative aspects, we consider
Return on Equity (RoE), cash flow
quality, asset turnover, capital
allocation, etc. In qualitative
aspects corporate governance,
pedigree and stability of
management and value creation
for its stakeholders form the key
measures.
This framework is irrespective
of the size of the company.
Nimesh Chandan - We focus on the
fundamentals of companies. We
believe it is the quality of the
company's business and
management that creates or
destroys wealth for the investors
over the long term rather than
technical or quantitative aspects
of the market. Hence our
investment philosophy that “It is
companies and not stocks that
create wealth”
The objective for the investment
team is “to invest in robust
growth-oriented businesses
ICICIdirect Money Manager
Tête-à-tête
with competent management at
reasonable valuations”. We
have a three stage investment
research process which covers
both top-down and bottom-up
stock selection approach.
Through this process we try to
assess the quality of business
and management of the
company and prepare a range
of valuation that it should ideally
trade on.
We prefer companies that are
on a sustainable growth
t r a j e c t o r y, w h e r e c a p i t a l
intensity is low, deliver good
return on equity and have a
strong competitive positioning
Q. What is your advice for investors
at this point in terms of their overall
portfolio and asset allocation?
A. Jinesh Gopani - Volatility is a
friend of the long term investor.
While equity markets are
volatile in the short run, they
tend to follow earnings
performance in the long run.
The Indian economy as
highlighted above is the fastest
growing large economy in the
world. With revival in the
Indian corporate sector, the
37 June 2018

long term potential of equities
continues to look attractive.
Systematic investments offer a
prudent yet simple mechanism
for investors to ride the
volatility. SIP`s help ride the
downturns without investors
facing the risks associated with
timing the markets.
Asset allocation is essential for
portfolio construction keeping
in mind the investor risk
appetite and goals. Regardless
of market fluctuations investors
must stick to their targeted
asset allocations to generate
long term performance in line
with investor expectations.
ICICIdirect Money Manager
Tête-à-tête
Nimesh Chandan - Asset
allocation will depend on the
client's risk return profile.
Within equities, we expect this
year to be a volatile year due to
international as well as
domestic issues. With
acceleration in GDP growth
and improvement in earnings
growth for the next three years,
we expect the market to
provide healthy returns over
the next three years. Hence a
correction in the market can be
taken as an opportunity to
increase investment in
Equities. Investors can also
choose the SIP route to
increase equity allocation at
this point.
38 June 2018

Tax-planning is a crucial part of your personal finance
Q. I have taken an ICICI Prudential
Life Time Pension Plan taken in
2004 March. Total sum assured
was 1lk and I am paying 10000
premium yearly. Now it i getting
expire in 2019 and current value is
340000. Just want to know if I Opt
for taking full money on maturity, do
i need to pay income tax for the
whole money? if so what is the
percent of tax i need to pay? I am
working and i am already under
30% tax bracket.
- Uday
A. This is an unit linked pension
policy. For all pension policies,
on maturity, you would be able
to withdraw only a maximum
of 1/3rd of the maturity value as
lumpsum and the balance
amount has to be converted
into annuity. You would start
receiving regular pension from
such amount, depending on
the frequency opted by you.
The lumpsum amount of 1/3rd
withdrawn would be exempt
from tax. The pension you
would be receiving every year
would be added to your
income and taxed as per your
income slab.
ICICIdirect Money Manager
ASK OUR PLANNER
Q. What would be the amount
if I want to surrender my
policy ICICI Prudential Life
Stage Assure after completing 10
years. Is it the fund value OR Fund
value+GMA OR Fund value+GMA-
taxes. If taxes are there, what
would be its proportion? I have
taken my policy in Feb 2009.
- Sudhir Kumar
A. If you surrender the policy,
you would be receiving only
the fund value; the Guaranteed
Maturity Addition (GMA) will
not be paid. As you have taken
the policy in February, 2009,
the surrender value would not
be taxed, if the sum assured of
your policy was at least 5 times
the premium paid every year.
However, if it's not the case,
then you would have to pay tax
on the difference between the
fund value and the sum of
premiums paid, as per your
income slab. For such cases,
the insurance company would
deduct 1% TDS on the amount,
if the amount to be received
exceeds Rs.1 lakh in a financial
year.
39 June 2018

Q. I would like to know being an
NRI and if I surrender Pension
Policy of 40 lakhs corpus nearing
maturity of years and reinvest in
other ICICI fund or ulip directly if
available without getting the
surrender value back what are tax
implications and any option
available for saving the TDS on the
same. Alternately if I produce Tax
Residency Certificate and Form 10F
is the surrender value still taxable.
- Jeffry Fernandes
A. If you surrender a pension
policy, then the entire
surrender proceeds would be
added to your income and
taxed as per your income slab,
irrespective of how you utilize
the surrender proceeds.
However, if you are a NRI, no
tax will be deducted for
countries where DTAA benefit
is available as per Section 90 of
The Income Tax Act, 1961, and
if you have submitted complete
& valid Form 10F and Tax
residency certificate with the
insurance company. This
benefit is only available if the
DTAA treaty with the country of
your residence specifies that
the income is taxable in other
country and not in India. These
ICICIdirect Money Manager
ASK OUR PLANNER
forms should be submitted by
residents of only those
countries who have a NO TDS
agreement as per DTAA with
the country of their residence.
Please visit
https://www.iciciprulife.com/s
ervices/nri-corner/nri-tax-bene
fits-on-life-insurance.html for
further information.
Q. I have bought my first home with
home Loan from SBI and paying
EMI of Rs.20,000. The house I
reside in currently was bought 3
years back with home loan from
another bank, for which I pay EMI
of Rs. 26,000. I am claiming tax
benefits for the first home given for
rent for the past 7yrs. Now I want to
change this & claim Tax benefit for
the second home (self-occupied)
because I am paying higher EMI.
What should I do?
- Mangesh Manohar
A. You can claim deduction on
the interest on the home loan
taken for both the house
p r o p e r t i e s . Fo r t h e f i r s t
p r o p e r t y, y o u w o u l d b e
declaring rent and accordingly
the deduction would be loss on
house property, which is
limited to Rs.2 lakh. For the
second property, which is self-
occupied, the interest on
40 June 2018

house loan can be claimed
upto Rs.2 lakh separately.
Q . I recently moved to New
Zealand, where my employer
provides adequate medical
coverage. I have a family floater
plan in India that also covers my
parents. Can I remove my name
from the plan and let my parents
continue the policy? I'm the policy
proposer
- Shashi Bohra
A. Yes, you can remove your
name from the list of insured
persons in the plan and let your
parents only remain as insured.
You can choose to continue to
be the proposer and pay the
premiums or either of your
parents can become the
proposer. Any kind of such
changes can happen only
during the renewal of the
policy.
Q. Is it advisable for me to invest Rs.
5 lac in fixed annuities (with
guaranteed return of principal) that
was gifted to me in cash by my
parents? I am 40 years old. I need to
Do you also have similar queries to ask our experts? Write to
us at: moneymanager@icicisecurities.com.
ICICIdirect Money Manager
ASK OUR PLANNER
invest this lump sum for the goal of
my retirement. Please suggest
suitable options.
- Ramchandra G. Vartak
A. If you are looking to invest
this amount for your retirement,
you can choose the investment
avenue based on the time left
for retirement. If you have more
than 15 years to retire, you can
choose to invest into equity
oriented instruments like
mutual funds and post your
retirement, you can invest the
accumulated corpus into
annuity plans, to receive a fixed
annuity from the same.
Instead of investing the entire
amount in one go into equity
mutual funds, you can
consider investing the amount
into liquid funds and shift the
amount systematically into
equity funds every month over
next 1 to 2 years through
Systematic Transfer Plan
(STP).
41 June 2018

Investing in infrastructure funds
The year 2018 has been an
extremely volatile year so far
with profit booking being
witnessed in broader markets
along with a change in sectoral
performances compared to
earlier years. With sharp
deterioration in markets
sentiments due to global and
domestic factors, sectors like
infrastructure underperformed
in recent months.
We believe the recent correction
in infrastructure and related
stocks offers a good investment
o p p o r t u n i t y. Va r i o u s
infrastructure segments remain
well placed to offer a better
i n v e s t m e n t o p p o r t u n i t y.
Segments like roads, railways,
ports, oil & gas, defence and
housing have been key thrust
areas of the government. Policy
measures to create a favourable
environment for private
investment along with the
government's own huge
expenditure on the
infrastructure segment have
started to result in order inflows
and execution on the ground.
Tendering activity in infra and
capex segments is a lead
indicator of a pick-up in
ICICIdirect Money Manager
MUTUAL FUND ANALYSIS
economic activity. Tendering is
followed by actual awarding of
contracts, which later leads to
ground level execution. Large
scale tendering for mega infra
projects is beneficial for larger,
stronger companies that are
more typically found in the
organised space. While
tendering activity was
dominated by the government,
participation of private players
in tendering activity was very
limited in the last three to four
years due to high leverage and
an elevated interest rate
scenario along with uncertainty
over policy framework.
However, we believe private
investment could see an uptick
in investment possibly, going
forward, as there are early
signs of corporate balance
sheet repairs. Overall, we
believe execution activity
would be boosted over the
next few months as tendering
activity, which has already
picked up (and is highest since
2012), will ultimately translate
into action.
Furthermore, opening up of
various financing options like
InvITs, REITs along with Budget
42 June 2018

focus on promoting the bond
market for lower rated
companies will make the
business environment
conducive to private investment
in infrastructure.
In its Budget announcements,
the government has underlined
its commitment to provide a
continued thrust to the infra
space. Budgetary allocation to
roads, highways and transport
increased 16.3% YoY while that
to urban development
increased 11.2% YoY. Railways
received a bumper push, with
budgetary allocation increasing
32.7% YoY. Consequently,
allocation towards key
development related schemes
increased 14.1% YoY.
Over the past few years, the
government has been working
on providing the much needed
groundwork that can see the
infrastructure sector take off in
coming years. The removal of
sectoral bottlenecks like land
acquisition, environmental
approvals, allocation of mining
ICICIdirect Money Manager
MUTUAL FUND ANALYSIS
resources along with
measures for ease of doing
business may lead to timely
completion of infrastructure
projects. As infrastructure
projects involve high capital
expenditure, a sharp fall in
interest rates has significantly
added to the profitability of the
sector.
Infrastructure funds focusing
on specific companies
capitalising on growth potential
in the sector are offering good
investment options to
investors. Aggressive investors
may consider investing in the
recommended infrastructure
funds as a part of their thematic
allocation.
We recommend the following
funds: Aditya Birla SL
I n f r a s t r u c t u r e Fu n d , L & T
I n f r a s t r u c t u r e Fu n d a n d
Reliance Diversified Power
Sector Fund. Investors should
avoid allocating more than 10%
of their equity mutual fund
corpus in any sector or
thematic fund.
43 June 2018
 MUTUAL FUND ANALYSIS

Aditya Birla Sun Life Product Label:

This product is suitable for investors who are
Infrastructure Fund seeking:

· Long term capital growth

Fund Objective:
An open-ended growth scheme
with the objective of providing
for medium to long-term capital
appreciation by investing
predominantly in a diversified
portfolio of equity and equity
related securities of companies
that are participating in the
growth and development of
Infrastructure in India.
Key Information
NAV as on May 31, 2018 (|)
Inception Date
Fund Manager
Minimum Investment (|) Lumpsum
SIP
Expense Ratio (%)
Exit Load
Benchmark
Last declared Quarterly AAUM(| cr)
· Investments in equity and equity related
securities of companies that are participating
in the growth and development of
Investors understand that their principal will be at high risk
Performance:
The fund has managed to beat
the Nifty Infra TRI index, its
benchmark, across most time
horizons and since its
inception (as of May 31).
However, its performance
relative to peers has not been
as impressive over the last
three years. It has generated
34.3 CAGR of 8.9% and 18.9% in the
March 17, 2006
Vineet Maloo
last three years and five years
1000
1000
vs. 2.5% and 8.8% returns by
2.68 benchmark, respectively (as of
1% on or before 1Y, Nil after 1Y
NIFTY INFRA - TRI May 31).
689

Performance vs. Benchmark (CAGR Returns %)

18.9

20
10.6

15
8.9

8.8
5.3

10
3.5
2.5
4

5
0
1 Year 3 Year 5 Year Since
Inception
Fund Benchmark

ICICIdirect Money Manager 44 June 2018

 MUTUAL FUND ANALYSIS

Portfolio:
The fund has traditionally
invested heavily in financials
and industrials with these two
sectors regularly constituting
~50-55% of the portfolio.
However, over the last two to
three years, it has consistently
cut exposure to these sectors
while increasing allocation to
materials. The portfolio
displays a significant midcap
bias with the portfolio seeing
allocation of ~40% in large
caps and ~60% in midcap and
small cap stocks. At the stock
level, the fund tries to mitigate
this risk by diversifying heavily.
It currently holds 65 stocks
with the top 10 bets making up
around a third of the portfolio.

Top 10 Holdings Asset Type %

Honeywell Automation India Ltd. Domestic Equities 5.5
Carborundum Universal Ltd. Domestic Equities 4.3
Bharat Electronics Ltd. Domestic Equities 3.4
Clearing Corporation Of India Ltd. Cash & Cash Equivalents and Net Assets 3.4
PNC Infratech Ltd. Domestic Equities 3.3
Indraprastha Gas Ltd. Domestic Equities 3.1
Tata Steel Ltd. Domestic Equities 3.0
KEC International Ltd. Domestic Equities 2.7
NTPC Ltd. Domestic Equities 2.4
Hindalco Industries Ltd. Domestic Equities 2.2

Top 10 Sectors Asset Type %

Industrial Manufacturing Domestic Equities 22.2
Energy Domestic Equities 17.0
Construction Domestic Equities 15.3
Financial Services Domestic Equities 10.2
Metals Domestic Equities 8.8
Others Domestic Equities 7.4
Cement & Cement Products Domestic Equities 5.2
Automobile Domestic Equities 2.0
Others Domestic Equities 1.9
Consumer Goods Domestic Equities 1.9

ICICIdirect Money Manager 45 June 2018

 MUTUAL FUND ANALYSIS

Whats In %
JSW Steel Ltd. 0.5
The Ramco Cements Ltd. 0.3
ICICI Bank Ltd. 1.4

Whats out %
The India Cements Ltd. 1.1
Axis Bank Ltd. 1.3

Our View: can consider this fund from a

The fund has worked on
diversifying its portfolio by
moving away from highly
concentrated positions in
financials and industrials.
Having reduced exposure to
sectors such as consumer
discretionary and financials the
fund is now truer to the
infrastructure theme. Investors
three-year perspective.
You can view performance of
other schemes being managed
by the fund manager of this
scheme on the following link:
https://mutualfund.adityabirla
capital.com//media/bsl/files/re
sources/factsheets/2018/emp
ower-may-2018.pdf

Data as on May 31, 2018; Portfolio details as on April-2018

Source: ACE MF, ICICI Direct Research

ICICIdirect Money Manager 46 June 2018


L&T Infrastructure Fund
Fund Objective:
The scheme seeks to generate
capital appreciation by
investing predominantly in
equity and equity related
instruments of companies in
the infrastructure sector.
NAV as on May 31, 2018 (|)
Inception Date
Fund Manager
Minimum Investment (|)
Expense Ratio (%)
Exit Load
Benchmark
Last declared Quarterly AAUM(| cr)
Product Label:
Investors understand that their principal will be at high risk
Performance vs. Benchmark (CAGR Returns %)
30
13
20
10
0
-10
1 Year
The portfolio has undergone a
significant change in character
over the years. Till 2012, the
ICICIdirect Money Manager
MUTUAL FUND ANALYSIS
Performance:
The fund has been a top
quartile performer over the last
one year, three year and five-
year time frames (as on May
31), indicating its relative
outperformance over its peers.
Key Information
17.2
September 27, 2007 It has also comfortably and
Soumendra Nath Lahiri
Lumpsum
SIP
5000
500
consistently beaten the
2.10
1% on or before 1Y, Nil after 1Y benchmark Nifty Infra TRI by
NIFTY INFRA - TRI
2106 ~8% (one year), ~13% CAGR
(three years) and ~15% CAGR
This product is suitable for
investors who are seeking
(five years) (as of May 31).
• Long term capital appreciation
• Investment predominantly in
equity and equity -related
instruments of companies in the
24.1
16.1
8.8
5.3
5.2
2.5
-1.7
3 Year 5 Year Since
Inception
Fund Benchmark
holdings were dominated by
financial, energy and industrial
stocks. However, post 2012 it
47 June 2018

started shedding financial
stocks in favour of materials
sector and post 2015, the
holdings in financial stocks has
been cut, to a large extent. As a
result, now the fund truly
resembles an infrastructure
fund with the portfolio
predominantly comprising
Top 10 Holdings
Cash & Cash Equivalent
Larsen & Toubro Ltd.
Shree Cement Ltd.
The Ramco Cements Ltd.
Lakshmi Machine Works Ltd.
Bharti Airtel Ltd.
Grasim Industries Ltd.
Graphite India Ltd.
Carborundum Universal Ltd.
Hindustan Zinc Ltd.
Top 10 Sectors
Industrial Manufacturing
Cement & Cement Products
Construction
Metals
Telecom
Others
Energy
Others
Services
Consumer Goods
ICICIdirect Money Manager
MUTUAL FUND ANALYSIS
appropriate constituent
sectors, viz. industrials,
materials, energy and telecom.
Currently, there are 56 stocks in
the fund with the top 10
holdings making up close to
38% of the portfolio. The fund
also has ~8% of the portfolio in
cash currently.
Asset Type %
Cash & Cash Equivalents and Net 8.3
Assets
Domestic Equities 7.0
Domestic Equities 4.9
Domestic Equities 4.6
Domestic Equities 3.7
Domestic Equities 3.5
Domestic Equities 3.3
Domestic Equities 3.2
Domestic Equities 3.1
Domestic Equities 2.6
Asset Type %
Domestic Equities 28.1
Domestic Equities 20.9
Domestic Equities 17.2
Domestic Equities 8.3
Domestic Equities 6.7
Domestic Equities 4.0
Domestic Equities 3.3
Domestic Equities 1.9
Domestic Equities 0.8
Domestic Equities 0.2
48 June 2018
 MUTUAL FUND ANALYSIS

Whats In %
Grindwell Norton Ltd. 1.2

Whats out %
Hindustan Petroleum Corporation Ltd. 0.6
Jindal Steel & Power Ltd. 1.5

Our View:
The fund is on the aggressive
side with higher allocation to
midcaps than large caps.
However, the portfolio is well
constructed in terms of
diversification. Investors
looking for a true-blue infra
fund can consider L&T
Infrastructure Fund.
You can view performance of
other schemes being managed
by the fund manager of this
scheme on the following link:
https://www.ltfs.com/content/
dam/lnt-financial-services/lnt-
mutualfund/downloads/factsh
eets/201819/LT%20Factsheet
%20April%202018.pdf

Data as on May 31, 2018; Portfolio details as on April-2018

Source: ACE MF, ICICI Direct Research

ICICIdirect Money Manager 49 June 2018

 MUTUAL FUND ANALYSIS

Reliance Power & Infra Fund

Fund Objective: Performance:

The primary investment
objective of the scheme is to
generate long term capital
appreciation by investing
predominantly in equity and
equity related securities of
companies in the power sector.
NAV as on May 31, 2018 (|)
Key Information
Inception Date
Fund Manager
Minimum Investment (|)
The fund has outperformed its
benchmark BSE Power Index
strongly over the years. The
one year, three years and five-
year performance (as of May
31) is 9.7%, 14.2% CAGR and
109.4
18.1% CAGR, respectively
May 8, 2004
Sanjay Doshi compared to Nifty Infra Index'
Lumpsum 5000

Expense Ratio (%)

SIP 100
2.11 5.3%, 2.5% CAGR and 8.8%
Exit Load 1% on or Before 1Y, Nil After 1Y
Benchmark
Last declared Quarterly AAUM(| cr)
NIFTY INFRA - TRI
1944
CAGR. When compared to its
Product Label: category peers, the
This product is suitable for
investors who are seeking performance has picked up
• Long term capital growth over the last three years but
• Investment in equity and equity over five years time frame it
related securities of companies in
power sector has underperformed.
Investors understand that their principal will be at high risk

Performance vs. Benchmark (CAGR Returns %)

18.1

18.5
14.2

20
15
9.7

8.8

9
5.3

10
2.5

5
0
1 Year 3 Year 5 Year Since
Inception
Fund Benchmark

ICICIdirect Money Manager 50 June 2018


Portfolio
Industrials and utilities
consistently make up ~75-
80% of the scheme portfolio.
The scheme has taken outsized
positions on these sectors over
the years. In recent times,
exposure to materials has also
increased. It is now the third
largest holding in terms of
Top 10 Holdings
Larsen & Toubro Ltd.
KEC International Ltd.
GE Power India Ltd.
PTC India Ltd.
Jindal Stainless (Hisar) Ltd.
KSB Pumps Ltd.
Apar Industries Ltd.
Torrent Power Ltd.
NTPC Ltd.
Sterlite Technologies Ltd.
Top 10 Sectors
Energy
Industrial Manufacturing
Construction
Others
Telecom
Cement & Cement Products
Others
ICICIdirect Money Manager
MUTUAL FUND ANALYSIS
sectors. The fund likes to take
large bets on its top holdings,
with the top five stocks all
individually constituting ~5%
or more of the portfolio and the
top 10 stocks constituting
~52% of the portfolio. Overall,
the fund currently has 36
stocks in the portfolio and has a
pronounced midcap tilt.
Asset Type %
Domestic Equities 8.1
Domestic Equities 7.6
Domestic Equities 5.4
Domestic Equities 5.1
Domestic Equities 4.8
Domestic Equities 4.4
Domestic Equities 4.4
Domestic Equities 4.2
Domestic Equities 3.9
Domestic Equities 3.4
Asset Type %
Domestic Equities 37.1
Domestic Equities 36.2
Domestic Equities 14.0
Domestic Equities 4.8
Domestic Equities 1.6
Domestic Equities 1.5
Domestic Equities 0.4
51 June 2018
 MUTUAL FUND ANALYSIS

Whats out %
ICICI Bank Ltd. 1.3
Texmaco Rail & Engineering Ltd. 0.6

Whats In %
Bharat Electronics Ltd. 0.9
The India Cements Ltd. 0.9
Bharti Airtel Ltd. 1.6

Our View: You can view performance of

The fund is more suited to
s a v v y, e x p e r i e n c e d &
aggressive investors due to
factors like significant midcap
bias of ~80% and heavily
concentrated calls in terms of
stocks as well as sectors.
other schemes being managed
by the fund manager of this
scheme on the following link:
https://www.reliancemutual.c
om/InvestorServices/Factshee
tsDocuments/Fundamentals-
May-2018.pdf

Data as on May 31, 2018; Portfolio details as on April-2018

Source: ACE MF, ICICI Direct Research

ICICIdirect Money Manager 52 June 2018

 MUTUAL FUND ANALYSIS

Performance of other schemes managed by these fund managers:

1.Aditya Birla Sun Life Infrastructure Fund
Performance of other schemes managed by the fund manager - Vineet Maloo

Fund Name 1 Year 3 Years 5 Years

Top 3 Performing Schemes
Aditya Birla SL Intl. Equity Fund-A(G) 17.89 3.70 7.93
NIFTY 50 - TRI 11.71 10.73 13.80
Aditya Birla SL Intl. Equity Fund-B(G) 6.74 9.14 12.96
NIFTY 50 - TRI 11.71 10.73 13.80
Aditya Birla SL CPO Fund-Sr 30 4.13 -- --
CRISIL Hybrid 85+15 - Conservative Index 3.48 8.37 8.62
Bottom 3 Performing Schemes
Aditya Birla SL Balanced Advantage Fund(G)2.33 11.47 12.60
CRISIL Hybrid 50+50 - Moderate Index -- -- --
Aditya Birla SL Dividend Yield Fund(G) 1.53 7.34 13.86
NIFTY DIV OPPS 50 - TRI 11.17 13.34 12.22
Aditya Birla SL Infrastructure Fund(G) 0.87 9.50 18.46
NIFTY INFRA - TRI 1.52 2.26 8.21
Note : The schemes may or may not have been managed by the same
Fund Manager since its inception
Note : The concerned Fund Manager manages 10 other schemes of the
concerned Mutual Fund
2. L&T Infrastructure Fund
Performance of other schemes managed by the fund manager - Soumendra Nath Lahiri

Fund Name 1 Year 3 Years 5 Years

Top 3 Performing Schemes
L&T Emerging Businesses Fund-Reg(G) 12.91 24.28 --
S&P BSE Small-Cap - TRI 9.34 16.32 --
L&T Tax Advt Fund-Reg(G) 9.46 14.46 19.13
S&P BSE 200 - TRI 11.17 12.02 15.52
L&T Infrastructure Fund-Reg(G) 9.42 16.12 23.63
NIFTY INFRA - TRI 1.52 2.26 8.21
Bottom 3 Performing Schemes
L&T Dynamic Equity Fund-Reg(G) 7.12 5.63 15.16
S&P BSE 200 - TRI 11.17 12.02 15.52
L&T Large and Midcap Fund-Reg(G) 6.60 11.62 18.28
S&P BSE 200 - TRI 11.17 12.02 15.52
L&T Hybrid Equity Fund-Reg(G) 5.85 11.30 17.97
S&P BSE 200 - TRI 11.17 12.02 15.52
Note : The schemes may or may not have been managed by the
same Fund Manager since its inception
Note : The concerned Fund Manager manages 8 other schemes of
the concerned Mutual Fund

ICICIdirect Money Manager 53 June 2018

 MUTUAL FUND ANALYSIS

3. Reliance Power & Infra Fund

Performance of other schemes managed by the fund manager - Sanjay Doshi

Fund Name 1 Year 3 Years 5 Years

Top 3 Performing Schemes
Reliance Capital Builder Fund-II-B(G) 10.46 8.80 --
S&P BSE 200 9.70 10.54 13.93
Reliance Power & Infra Fund(G) 5.88 14.37 17.33
NIFTY INFRA - TRI 1.52 2.26 8.21

Note : The schemes may or may not have been managed by the
same Fund Manager since its inception
Note : The concerned Fund Manager manages 2 other schemes of
the concerned Mutual Fund

Performance of other schemes managed by the fund manager - Kinjal Desai

Fund Name 1 Year 3 Years 5 Years

Top 3 Performing Schemes
Reliance ETF Hang Seng BeES 26.71 7.75 12.97
NIFTY 50 - TRI 11.71 10.73 13.80
Reliance US Equity Opp Fund(G) 19.21 -- --
S&P BSE Sensex - TRI 13.51 10.77 13.93
Reliance Small Cap Fund(G) 14.36 22.58 34.92
S&P BSE Small-Cap - TRI 9.34 16.32 --
Bottom 3 Performing Schemes
Reliance Capital Builder Fund-IV-B(G) -- -- --
S&P BSE 200 9.70 10.54 13.93
Reliance Capital Builder Fund-IV-C(G) -- -- --
S&P BSE 200 9.70 10.54 13.93
Reliance Capital Builder Fund-IV-D(G) -- -- --
S&P BSE 200 9.70 10.54 13.93

Note : The schemes may or may not have been managed by the same Fund
Manager since its inception
Note : The concerned Fund Manager manages 49 other schemes of the
concerned Mutual Fund

Data as on May 31, 2018; Portfolio details as on April-2018

Source: ACE MF, ICICI Direct Research

ICICIdirect Money Manager 54 June 2018

 This month on iCommunity

Discussion
Your voice matters! Voice your opinions on: Will this monsoon affect your portfolio?
It is believed that normal monsoons for a third successive year are likely to
result in an increase in food grain production with a consequent rise in farm
income. This could boost rural demand, thereby benefiting sectors like farm
mechanization (tractors, tillers, and pumps), agricultural input (seeds, agro
chemicals), and FMCG and consumer durables, among others. So do you
subscribe to our view?

Share your thoughts on ICICIdirect's exclusive information platform -

iCommunity.
Join the discussions: http://community.icicidirect.com/service_forum

Q & A Session
Q & A Session with Travel Insurance Expert - ICICI Lombard
Below mentioned questions were asked during the event -
a) What types of casualties are covered in Travel Insurance? Can you
please elaborate?
b) What if I want to stay away longer than originally planned? Can I
extend my policy to cover me for the extra time I'm out of India, and
how do I make the necessary arrangements?
c) What kind of coverage do I need for a 4 family member visit to USA
for a period of 18 days?

What is iCommunity?
iCommunity is ICICIdirect's interactive platform where one can answer and get
answered as well. With extensive range of forums, events & discussions iCommunity
serves as an opportunity to learn more about financial world.

ICICIdirect Money Manager 55 June 2018

 EQUITY MODEL PORTFOLIO

Our indicative large-cap equity model portfolio is delivering an

impressive return (inclusive of dividends) of 131.8% till date (as on May
30, 2018) since its inception (June 21, 2011) vis-à-vis the benchmark
index (S&P BSE Sensex) return of 103.5% during the same period, an
outperformance of 28.3. This validates our thesis of selecting
companies with sound business fundamentals that forms the core
theme of our portfolio. We have revised stocks in our midcap portfolio.
It continues to outperform, delivering 343.7% (inclusive of dividends)
till date (as on May 30, 2018) vis-à-vis the benchmark index (CNX
Midcap) return of 145.6%, outperformance of 198.1. Our consistent
outperformance demonstrates our superior stock picking ability as
markets aligned to our view of favourable risk reward, good franchisee
vs. reward-at-any-risk businesses.
We have always suggested the SIP mode of investment and still find a
lot of merit in it as the preferred mode of deployment given the market
conditions and volatility associated since the inception of the portfolio.
We highlight that the SIP return of our portfolio has consistently
outperformed the indices.
Following the same pace and opportunities in the market, our latest
portfolio (large caps) remains overweight on BFSI sector – HDFC Bank
(10%), HDFC (9%), Axis Bank (6%) Bajaj Finance (6%) and SBI (6%). ITC
is the latest addition to the large-cap portfolio, given6% weightage.
Affirming our view on consumption demand, Dabur (5%) and Marico
(4%) continue to be part of our large cap portfolio.
We remain positive on auto, IT and pharma. However, please note that
the weightage for Tata Motor DVR, Maruti and EICHER Motor is revised.
We remain overweight to neutral on pure play defensives (IT, FMCG) as
secular earnings coupled with sector rotation could lead to
consolidation in near term valuations and offer stock specific
opportunities.
We continue to remain underweight on metals and oil & gas with our
only pick being Gail Ltd., which has a better risk reward opportunity.
Among individual names, we recommend TCS in the IT space, HDFC
and HDFC Bank in the BFSI space, ITC in consumer space and NBCC in
the infra space.

ICICIdirect Money Manager 56 June 2018

 EQUITY MODEL PORTFOLIO

Name of the company Model Portfolio

Largecap Midcap Diversified
(%) (%) (%)
Largecap Stocks
Tata Motor DVR 3.0 2.1
Maruti 6.0 4.2
EICHER Motors 4.0 2.8
Mahindra & Mahindra (M&M) 4.0 2.8
HDFC Bank 10.0 7.0
Axis Bank 6.0 4.2
HDFC 9.0 6.3
Bajaj Finance 6.0 4.2
SBI 6.0 4.2
L&T 6.0 4.2
UltraTech Cement 4.0 2.8
Dabur 5.0 3.5
Marico 4.0 2.8
ITC 6.0 4.2
Nestle 4.0 2.8
TCS 6.0 4.2
Hindustan Zinc 6.0 4.2
GAIL Ltd. 5.0 3.5
Largecap share in diversified 100.0 70.0

ICICIdirect Money Manager 57 June 2018

 EQUITY MODEL PORTFOLIO

Bharat Forge 6.0 1.8

Bajaj Finserve 8.0 2.4
J&K Bank 6.0 1.8
Indian Bank 6.0 1.8
Bharat Electronics 6.0 1.8
Kalpataru Power transmission 6.0 1.8
Ramco Cement 6.0 1.8
Symphony 6.0 1.8
Kansai Nerolac 6.0 1.8
Pidilite 6.0 1.8
Tata Chemicals 6.0 1.8
Bata 6.0 1.8
Graphite India 6.0 1.8
NBCC 8.0 2.4
Container Corporation of India 6.0 1.8
Arvind 6.0 1.8
Total 100.0 30.0
Midcap share in diversified 30

TOTAL 100 0 100.0

ICICI Securities has received an Investment Banking mandate from

Mahindra & Mahindra, ONGC and Indian Bank.

ICICIdirect Money Manager 58 June 2018

 EQUITY MODEL PORTFOLIO

Performance so far since inception*

Performance since inception

375 343.6897355
350
325
300
275
250
%

225
200 180.9073546
175 145.5595898
150 131.7698723 115.264005
125 103.4961191
100
75
50
25
0

Large Cap Midcap Diversified

Portfolio Benchmark

*Returns (in %) as on May 31, 2018

Value of Rs 1,00,000 invested via SIP at end of every month

8500000

12873125.37

8500000

12610227.83

8500000

12475289.95
8500000
11231288.81

7500000

6500000
|

5500000

4500000

3500000
Largecap Midcap Divesified
Investment Value of Investment in Portfolio Value if invested in Benchmark

ICICIdirect Money Manager 59 June 2018

 QUIZ TIME

Quiz Time
1. Q4FY18 has been one of the best quarters for the
banking industry in terms of asset. True/False
2. After several quarters of stress in the aftermath of
___________ and ____________, the consumer goods
sector seems to be back on the growth track.
3. The growth in building material sector was largely
impacted by a delay in implementation of
_____________
4. Improving credit growth may enable profitability to
improve in PSU and corporate banks over FY19-20E.
True/False
5. Q4 continued to report a _____________quarter for
surface logistics players.

Note: All the answers are in the stories that have appeared in
this edition of ICICIdirect Money Manager. You may send in
your answers at: moneymanager@icicisecurities.com. The
answers will be published in our next edition. The names of
the earliest all correct entries will be published too. So jog
your grey cells and be quick to send in your entries.

Correct answers for the May 2018 quiz are:

1. Even if an investor misses 1% of most critical
opportunity to time the market the overall return is less
than a simple buy and hold strategy.
2. With time, the volatility of returns on equity
investment decreases.
3. Select companies (stocks) with a clean balance sheet
& low debt levels in relation to equity.
4. ICICIdirect Research study shows that beyond 25
stocks, the additional diversification benefit starts to
decline. False
5. Over diversification runs the risk of complexity True

ICICIdirect Money Manager 60 June 2018

 PRIME NUMBERS

Equity Markets
Domestic Equity Indices
31-May-18 30-Apr-18 Change (%)
CNX Nifty 10736.0 10739.0 0.0%
CNX Midcap 18903.3 20290.3 -6.8%
S&P BSE Sensex 35322.4 35160.4 0.5%
S&P BSE 100 11040.8 11153.0 -1.0%
S&P BSE 200 4654.4 4723.5 -1.5%
S&P BSE 500 14765.7 15047.7 -1.9%

Global Equity Indices

31-May-18 30-Apr-18 Change (%)
Dow Jones 24,415.8 24,163.2 1.0%
S&P 500 2,705.3 2,648.1 2.2%
Nasdaq 7,442.1 7,066.3 5.3%
FTSE 7,678.2 7,509.3 2.2%
DAX 12,604.9 12,612.1 -0.1%
CAC 40 5,398.4 5,520.5 -2.2%
Nikkei 22,201.8 22,467.9 -1.2%
Hang Seng 30,468.6 30,808.5 -1.1%
Shanghai Composite 3,095.5 3,082.2 0.4%
Taiwan Weighted 10,875.0 10,657.9 2.0%
Straits Times 3,428.2 3,613.9 -5.1%

Sectoral Indices
31-May-18 30-Apr-18 Change (%)
S&P BSE Auto 24,471.6 25,833.8 -5.3%
S&P BSE Bankex 30,007.1 28,651.9 4.7%
S&P BSE FMCG 11,291.5 11,305.7 -0.1%
S&P BSE Healthcare 13,002.7 14,153.6 -8.1%
S&P BSE Metals 13612.1 14276.9 -4.7%
S&P BSE Oil & Gas 14,429.4 14,429.5 0.0%
S&P BSE Power 2,129.3 2,238.1 -4.9%
S&P BSE Realty 2,234.7 2,420.2 -7.7%
S&P BSE Teck 6,966.2 7,097.4 -1.8%

ICICIdirect Money Manager 61 June 2018

 PRIME NUMBERS

Volatility Index (VIX)

31-May-18 30-Apr-18
VIX 13.22 12.36

Debt Markets
Government Securities Yield May-18 Apr-18 Change (bps)
10 year 7.83 7.75 8
5 year 7.93 7.78 15
3 year 7.70 7.59 11
1 year 6.91 6.70 21

Corporate Bond Yields May-18 Apr-18 Change (bps)

AAA 10 year 8.58 8.59 -1
AAA 5 year 8.54 8.27 27
AAA 3 year 8.44 8.17 27
AAA 1 year 8.31 7.81 50
AA 10 year 9.02 9.05 -3
AA 5 year 8.97 8.78 19
AA 3 year 8.88 8.63 25
AA 1 year 8.69 8.20 49

Commercial Paper May-18 Apr-18 Change (bps)

12 Months 8.43 7.48 96
6 Months 8.08 7.33 76
3 Months 7.58 7.10 48
1 Month 0
Note : Data not available on Bloomberg for 1 month CP post 3/28/18

T-Bills Yields May-18 Apr-18 Change (bps)

91D TB 0
182D TB 0
364D TB 0
Note : Data not available on Bloomberg for 3,6 and 12 month Tbill post 3/28/18

ICICIdirect Money Manager 62 June 2018

 PRIME NUMBERS

10-year benchmark yields (%) across countries

Countries 31-May-18 30-Apr-18 Change in bps
US 2.859 2.953 (9)
UK 1.230 1.418 (19)
Japan 0.040 0.055 (2)
Spain 1.487 1.274 21
Germany 0.341 0.559 (22)
France 0.664 0.784 (12)
Italy 2.794 1.785 101
Brazil 11.456 9.835 162
China 3.638 3.648 (1)
India 7.826 7.767 6

MF Investment May-18 Apr-18 Fy18

Equity 13618 11293 24912
Debt -14085 20165 6079

FII Investment May-18 Apr-18 Fy18

Equity -9660 -13950 -15900
Debt -17750 -6209 -31700

Macro-economic Indicators
Consumer price index (CPI)
Items Weights(%) Feb-18 Mar-18 Apr-18
Food&bev. 45.86 3.46 3.08 3.00
Pan,tob& intox. 2.38 7.27 7.72 7.91
Cloth & Foot 6.53 4.93 4.91 5.11
Housing 10.07 8.28 8.31 8.50
Fuel & light 6.84 6.88 5.73 5.24
Misc. 28.31 3.85 4.16 4.96
CPI 100 4.44 4.28 4.58

Wholesale price index (WPI)

Month
Weights Feb-18 Mar-18 Apr-18
WPI 100.0 2.84 2.48 2.47
Primary Articles 22.6 2.37 0.79 0.24
Fuel & Power 13.2 4.08 3.81 4.70
Manufactured Goods 64.2 2.78 3.04 3.03
WPI numbers are based on new series with 2011-12 as the base year’

ICICIdirect Money Manager 63 June 2018

 PRIME NUMBERS

Index of industrial production (IIP) Sector-wise growth rate (%)

Categories Apr-18 Mar-18 Feb-18 Weight(%)
Mining -20.9 19.3 -3.9 -0.8
Manufacturing -11.0 6.7 -2.8 1.3
Electricity -1.9 15.1 -9.0 3.9
Overall -11.5 9.0 -3.6 1.2
*IIP numbers are based on new series with 2011-12 as the base year’
Currencies and Commodities
Currencies
31-May-18 27-Apr-18 Change (%) Status
USDINR 67.4 66.7 1.1% Depreciated
EURINR 78.8 80.5 -2.1% Appreciated
GBPINR 89.9 91.8 -2.1% Appreciated
AUDINR 51.1 50.4 1.5% Depreciated
CHFINR 68.3 67.3 1.6% Depreciated
JPYINR 0.6 0.6 1.5% Depreciated
CNYINR 10.5 10.5 -0.1% Appreciated
Commodities
30-May-18 30-Apr-18 Change (%)
Crude ($/barrel) 77.1 74.9 3.0%
Gold ($/ounce) 1,298.5 1,315.0 -1.3%

Mutual Funds: Category Average Returns

Equity Funds Returns (in %)
Tenure Diversified Funds Mid-cap & Large-cap ELSS (Tax-
Small-cap Funds savingfunds)
Funds
6 months -0.95 -3.03 1.47 -0.77
1 year 9.68 11.61 9.33 10.44
3 year 10.64 13.83 8.83 10.68
5 year 18.29 25.84 15.19 18.11
Returns as on May 31, 2018

Debt Funds Returns (in %)

Tenure Liquid Funds Debt ST Ultra ST Debt LT

6 months 6.50 3.27 5.23 0.12

1 year 6.46 4.98 6.03 2.73
3 year 6.90 7.32 7.34 6.74
Returns as on May 31, 2018

Sources for above data: Bloomberg, Reuters, CRISIL, MOSPI, ICICIdirect.com

Research

ICICIdirect Money Manager 64 June 2018

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