N E W

YE A R
PIC K S
2 0 1 8 NCC
LTD.
THE
JAGRAN SOUTH
PRAKASHAN INDIAN
BANK
 December 26, 2017
PICKS

India Inc earnings on the cusp of recovery amid plentiful

domestic liquidity, but valuations weigh…
With the BJP winning both the state elections, focus would now shift to important economic events – Bank recap, Union
Budget, GST collection trends, economic growth data points, progress under insolvency code and interest rate trajectory.
Implementation of the earlier announced reform measures may be seen rather than more big bang fresh announcements.
Based on the outcome from these elections and the four more state elections due in the rst half of calendar 2018, the
Govt is likely to focus more on the rural and agriculture sector. Creation of jobs at an accelerated pace could be one
more focus area. The urban populace may not get anything major to rejoice in the near term.
VotE
Markets will watch out for earnings upgrade for companies following normalisation of economic conditions (post GST,
demonetisation, RERA related disruptions); also given the fact that global commodity cycle is on the upswing. While
condence about earnings growth is rising, current valuation levels could prevent a full-on bull run from these levels.

The recent PSU Bank recap announcement is likely to provide greater avenues for lending for banks and enable
banks to take bigger haircuts on stressed assets, push forward the resolution process and set the stage for a capex
cycle recovery in the medium term. This along with the Bharatmala and Housing for All initiatives by the Govt has
multi-fold implications and can materially revive the capex cycle along with potential acceleration in housing,
railways and defence ultimately having a multiplier impact on GDP.
With national elections due in May 2019, Govt has refocused on growth going by its recent actions of fuel tax cuts,
raising import duty on agri commodities, GST rate rationalisation, higher MSP hikes and bank recap plan. Though
coupled with near term pain of higher scal decit, these initiatives could put India on accelerated growth
trajectory FY19 onwards.
Biggest area of concerns would be worsening macros, delay in resumption of GDP growth and sustained interest rate rise in developed
economies.
Liquidity in the markets continue to be good especially from the domestic investors through Mutual fund route (both lumpsum and SIP). These
investors will keep investing as long as the markets do not fall sharply and then do not stay at low levels.
FIIs could re-evaluate investing in India in a big way only when ination comes under control, and economic growth starts picking momentum.
Globally the risk-on sentiment is alive. And a lot of the developed markets are witnessing “rational exuberance”. However there is some
uncertainty on the timing, pace and quantum of interest rate hikes to be conducted by the Central banks globally

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As far as the equity markets are concerned, the focus may slowly shift from liquidity to earnings. An issue for worry is whether the markets have
fully discounted all the India positives in advance and is going overboard on valuation just based on expected unending inows from
global/domestic sources.
Indian bond yields have hardened in recent months. Larger GoI spending on rural and infra, lower rabi output, state governments’ HRA
implementation and higher crude prices could all have a negative impact on ination and interest rates. This could take away some attraction
from equities in terms of valuation multiples.
Markets are awaiting resolution of rst large case under the Insolvency and Bankruptcy code, which is taking longer than expected. This could be
a positive trigger for both the lenders and the troubled sector/s.
While the largecaps have their own headwinds in different spheres, mid and small caps will keep throwing up surprises in stock moves based on
their small size/base, faster adjustment to emerging changes, nancial and operational restructuring, corporate announcements including
merger, demerger, hive-offs, turnaround, asset value unlocking etc.
Retail investors would do well to stick to their asset allocation plans, review their small and midcap holdings closely and bring down their return
expectations for the next few quarters.
The calendar year 2017 has been a great year for investors with the Nifty giving ~28% return. Investors would do well to moderate their
expectations for index returns in calendar 2018. We feel that investors would keep getting individual stock opportunities that could yield much
higher returns. Metals, Pharma, IT, Cement and infra are some sectors to watch out for in 2018.

We give below the picks for 2018

Jagran Prakashan South Indian Bank NCC Ltd

NEWS

RADIO
`
CMP : Rs. 170.45 CMP : Rs. 31.55 CMP : Rs. 132
TARGET PRICE : Rs.199-215 TARGET PRICE : Rs.38-41 TARGET PRICE : Rs.162-195

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Jagran Prakashan
Industry CMP Recommendation Add on Dips to band Target Time Horizon
Media Rs. 170.45 Buy at CMP and add on dips Rs. 170-154 Rs. 199-215 1 Year
Jagran Prakashan Ltd is India's leading media and communication group. It has a pan India
HDFC Scrip Code JAGPRAEQNR footprint with interests spanning across Print, OOH, Radio and Digital. The Company publishes
BSE Code 532705 approximately 10 newspaper titles in 5 different languages, sweeping across 13 states with over
NSE Code JAGRAN 400+ editions. Music Broadcast ltd, 70.5% subsidiary of the company, owns 39 radio stations
across India.
Bloomberg JAGP
CMP as on 22 Dec 17 170.45 Key highlights
Equity Capital (Rs Cr) 62.28
A E
Face Value (Rs) 2 AA
Equity Sh. Outstanding 31.14
Market Cap (Rs Cr) 5,222
Book Value (Rs) 65.6
Avg. 52 Week Volumes 237824 10 newspaper titles in Radio industry is Digital Advertising is the
52 Week High 208.5 5 different languages, expected to grow at an fastest growing vertical
sweeping across 13 excellent rate in the Indian M&E
52 Week Low 161 states with over 400+ industry
editions
Shareholding Pattern
Promoters 60.85
Institutions 24.53 Indian M&E industry has grown at an excellent pace though well below global average level –
which leaves ample room for growth.
Non Institutions 14.63
Besides traditional advertisers such as the FMCG and automobile industries its growth is also
Total 100
expected to be driven by ecommerce, payment banks, telecom services, financial
Fundamental Research Analyst: technology, content distribution platforms, and the social media sector. Election season is
Nisha Sankhala always good for print media and the upcoming 8 state elections will lead to higher advertising
nishaben.shankhala@hdfcsec.com spend which is likely to benefit the company.

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Jagran Prakashan
Radio industry is expected to grow at an excellent rate going forward due to an increase in listenership. It is rapidly becoming a medium of
choice of advertisers. Digital Advertising is the fastest growing vertical in the Indian M&E industry and going forward, we expect high growth on
the back of higher internet speed, low cost of bandwidth and Government’s push for ‘Digital India’.
We recommend Jagran Prakashan BUY at CMP of Rs. 170.45 (10x of FY20 EPS) and add on decline of Rs. 154 for the sequential Targets of Rs.199
(12.1x of FY20 EPS) and Rs.215 (13.1x of FY20 EPS).

We recommend Jagran Prakashan BUY at CMP of Rs. 170.45 (10x of FY20 EPS) and add on decline of Rs. 154
for the sequential Targets of Rs.199 (12.1x of FY20 EPS) and Rs.215 (13.1x of FY20 EPS).

Financial Summary (Consolidated)

(Rs Cr) FY16 FY17 FY18E FY19E FY20E
Sales 2079 2283 2477 2799 3135
EBITDA 640 681 667 795 912
Net Profit 307 349 356 435 510
EPS (Rs) 10.7 10.7 11.4 14.0 16.4
P/E 15.4 15.4 14.5 11.8 10.1
BV 49.6 65.6 78.2 89.0 101.6
P/BV 3.3 2.5 2.1 1.9 1.6
(Source: Company, HDFC sec)

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Jagran Prakashan
Income Statement Balance Sheet
Year ending March (Rs Cr) FY16 FY17 FY18E FY19E FY20E As at March (Rs mn) FY16 FY17 FY18E FY19E FY20E
Total Income 2129 2324 2502 2839 3185 Share Capital 65.4 65.4 62.3 62.3 62.3
Growth (%) 18.2 9.2 7.7 13.5 12.2 Reserves 1568 2095 2372 2709 3102
Operating Expenses 1488.8 1643.4 1835.4 2043.9 2272.5 Long Term Debt 259.2 50.2 65.3 68.5 69.9
EBITDA 640.4 680.8 666.6 795.1 912.4 Net Deferred Taxes 179.3 197.1 300.0 200.0 200.0
Depreciation 121.9 128.9 125.0 130.0 135.0 Long Term Provisions & Others 14.8 17.0 25.0 35.0 40.0
EBIT 519 552 542 665 777 Total Source of Funds 2120 2661 2835 3085 3484
Interest 54.5 35.0 18.3 24.8 26.7 Net Block 1422 1491 1789 2237 2796
PBT 464 517 523 640 751 Deferred Tax Assets (net) 34.5 26.9 30.0 50.0 60.0
Tax 157.2 167.5 167.5 204.9 240.2 Long Term Loans & Advances 90.3 559.5 490.6 510.2 561.7
RPAT 307 349 356 435 510 Total Non Current Assets 1547 2077 2310 2797 3417
Growth (%) 34.7 13.8 1.9 22.4 17.2 Current Investments 349.0 29.3 29.3 35.0 30.0
EPS 10.7 10.7 11.4 14.0 16.4 Inventories 66.9 93.5 101.8 107.4 111.7
Trade Receivables 448.0 515.8 542.9 613.5 687.1
Key Ratios (Consolidated) Short term Loans & Advances 54.2 43.4 80.2 120.4 180.5
Year ending March (Rs Cr) FY16 FY17 FY18E FY19E FY20E Cash & Equivalents 50.2 349.1 581.1 523.0 496.8
EBITDA Margin 30.8 29.8 26.9 28.4 29.1 Other Current Assets 38.3 53.4 58.7 81.6 121.6
APAT Margin 14.8 15.3 14.4 15.6 16.3 Total Current Assets 1154 1167 1352 1309 1321
RoE 20.8 18.4 15.5 16.7 17.2 Short-Term Borrowings 255.6 83.3 166.5 174.8 180.1
RoCE 24.5 20.7 19.1 21.6 22.3 Trade Payables 83.3 146.7 172.4 186.9 205.0
Net Debt/EBITDA (x) 0.2 -0.4 -0.6 -0.4 -0.3 Other Current Liab & Provisions 239.0 348.1 487.4 657.9 868.5
D/E 0.3 0.1 0.1 0.1 0.1 Total Current Liabilities 580.9 583.1 826.3 1019.7 1253.5
Interest Coverage 9.5 15.8 29.7 26.9 29.2 Total Application of Funds 2119 2661 2835 3086 3484
Dividend 0.0 3.0 2.4 3.0 3.6
Debtor days 79 82 80 80 80
Inventory days 14 13 15 14 13
Creditors days 48 82 85 83 82
EV/EBITDA 7.8 7.3 7.5 6.3 5.4
EV / Revenues 2.4 2.2 2.0 1.8 1.6
Dividend Yield (%) 0.0 1.8 1.4 1.8 2.2

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Jagran Prakashan
Cash Flow Statement
Year ending March (Rs Cr) FY16 FY17 FY18E FY19E FY20E
Reported PBT 464 517 523 640 751
Non-operating & EO items -244 175 -25 -40 -50
Interest Expenses 55 35 18 25 27
Depreciation 122 129 125 130 135
Working Capital Change -513 223 166 48 61
Tax Paid -157 -168 -167 -205 -240
OPERATING CASH FLOW ( a ) -273 912 640 599 683
Capex -649 -69 -298 -447 -559
Free Cash Flow -922 843 342 151 124
Investments 306 -462 66 -40 -62
Non-operating income 50 41 25 40 50
INVESTING CASH FLOW ( b ) -293 -489 -207 -447 -571
Debt Issuance / (Repaid) 147 -189 126 -87 6
Interest Expenses -55 -35 -18 -25 -27
FCFE -829 619 449 40 103
Share Capital Issuance 34 203 -229 0 0
Dividend -4 -102 -79 -98 -118
FINANCING CASH FLOW ( c ) 123 -123 -200 -210 -138
NET CASH FLOW (a+b+c) -443 299 232 -58 -26
Closing Cash 50 349 581 523 497
(Source: Company, HDFC sec)

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South Indian Bank

Industry CMP Recommendation Add on Dips to band Target Time Horizon
Bank Rs. 31.55 Buy at CMP and add on dips Rs. 31.55-29.5 Rs. 38-41 1 Year
South Indian Bank is a mid-sized bank in the private sector space, which operates network of
HDFC Scrip Code SOUBANEQNR about 851 branches and about 1,354 ATMs. The bank’s business is largely skewed towards the
BSE Code 532218 Southern state with half of its branches located in Kerala. The Bank's segments include Treasury,
NSE Code SOUTHBANK Corporate/Wholesale Banking, Retail banking and Other Banking Operations.
Bloomberg SIB
Key highlights
CMP as on 22 Dec 17 31.55
Equity Capital (Rs Cr) 180.58
Face Value (Rs) 1
Equity Sh. Outstanding 180.58
Market Cap (Rs Cr) 5,679
Book Value (Rs) 26.2 SIB has successfully Adopted a strategy to Technology banking
Avg. 52 Week Volumes 17015823 managed to keep a increase exposure in will provide significant
52 Week High (Rs) 33.5 tight leash on bad retail & SME– high uptick in terms of
52 Week Low (Rs) 16.8 assets yield segments costs, efficiency,
revenue and margins
Shareholding Pattern
Promoters 0 The bank is well capitalized with a CAR of 12.4% in FY17. Bank will use this capital to support
Institutions 50.17 growth plans and to enhance the business.
Non Institutions 49.83 While the whole Industry is under NPA pressure, SIB has successfully managed to keep a tight
Total 100 leash on bad assets. Watch list at the end of Q2FY18 has been reduced to “Zero”, and we do
not expect any incremental negative news on this front. Its GNPA at the end of Q2FY18 stood
Fundamental Research Analyst: at an elevated level of 3.54% vs 2.45% in FY17 and NNPA at 2.57% vs 1.45% in FY17. We expect
Devarsh Vakil
devarsh.vakil@hdfcsec.com that as per management guidance, the bank will take active measures in restructuring the
stressed assets.

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South Indian Bank

Bank has adopted a strategy to increase exposure in retail & SME– high yield segments. The change in stance was due to concern over asset
quality and slowdown in credit growth in large corporate segment.
Bank has set up a separate digital banking department for product development and process improvement of all technological products.
Technology banking will provide significant uptick in terms of costs, efficiency, revenue and margins. At CMP of Rs.31.5, SIB is trading at an
attractive valuation of 1x P/ABV of FY20. We recommend SIB a BUY at CMP and add on declines to Rs. 31.5-29.5 band for sequential targets of Rs.
38 (1.3x FY20E ABV) and Rs. 41 (1.4x FY20E ABV).

We recommend SIB a BUY at CMP and add on declines to Rs. 31.55-29.5 band for sequential targets of Rs. 38
(1.3x FY20E ABV) and Rs. 41 (1.4x FY20E ABV).

Financial Summary
(Rs Cr) FY16 FY17 FY18E FY19E FY20E
NII 394.1 522.9 568.3 791.1 1021.7
Growth % 7.2 32.7 8.7 39.2 29.2
PPOP 509.7 600.6 518.9 861.3 1107.5
PAT 333.3 392.8 337.3 568.5 731.0
Growth % 8.5 17.9 -14.1 68.5 28.6
BV 18.7 21.8 23.8 26.6 30.3
P/BV 1.7 1.4 1.3 1.2 1.0
(Source: Company, HDFC sec)

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South Indian Bank

Income Statement Balance Sheet
Year ending March (Rs Cr) FY16 FY17 FY18E FY19E FY20E As at March (Rs Cr) FY16 FY17 FY18E FY19E FY20E
Interest income 1309.24 1686.92 1935.72 2446.02 3583.43 Liabilities 63,522 74,366 82,424 92,921 1,07,627
Interest expended 915.10 1164.04 1367.43 1654.92 2561.69 Equity Capital 135.03 180.28 180.28 180.28 180.28
Net interest income 394.14 522.88 568.29 791.10 1021.74 Reserves & surplus 3706.89 4665.19 4872.682 5311.357 5912.5
Growth (%) 7.24 32.66 8.68 39.21 29.15 Networth 3,846 4,848 5,056 5,495 6,096
Other income 517.42 715.60 772.85 850.13 935.15 Deposits 55,721 66,117 72,729 82,184 95,333
Net Operating Income 911.56 1238.48 1341.14 1641.23 1956.89 Borrowings 2,615 1,958 2,909 3,339 4,085
Growth (%) 5.43 35.86 8.29 22.38 19.23 Other Current liabilities & provisions 1,341 1,442 1,730 1,903 2,113
Operating expenses 1147.84 1176.00 1293.60 1448.83 1593.72 Assets 63,522 74,366 82,424 92,921 1,07,627
Operating Profit 879.27 1215.00 1486.83 1883.68 2287.72 Cash and balances with RBI 2,476 3,078 2,909 3,287 3,813
Provisions and contingencies 369.62 614.37 967.92 1022.35 1180.22 Money at call and short notice 798 810 5,532 5,357 6,513
PBT 509.65 600.63 518.91 861.33 1107.50 Investments 14,744 19,430 16,000 18,080 20,973
Tax paid (provision) 176.40 207.80 181.62 292.85 376.55 Advances 41,086 46,389 52,884 60,711 70,425
PAT 333.25 392.83 337.29 568.48 730.95 Net fixed assets 487 656 695 730 767
Growth (%) 8.46 17.88 -14.14 68.54 28.58 Other assets 3,931 4,003 4,403 4,755 5,136

Key Ratios Key Ratios

Year ending March (Rs Cr) FY16 FY17 FY18E FY19E FY20E Year ending March (Rs Cr) FY16 FY17 FY18E FY19E FY20E
Calc. Yield on adv 11.1 10.2 10.9 11.0 11.0 PAT 8.4 17.9 -14.4 68.7 28.6
Calc. Cost of Fund 7.1 6.5 6.6 6.3 6.2 EPS 2.47 2.18 1.87 3.15 4.05
NIM 2.5 2.4 2.6 2.8 2.9 P/E 12.8 14.5 16.9 10.0 7.8
RoAE 8.97 9.04 6.82 10.78 12.62 Adj. BVPS 18.7 21.8 23.8 26.6 30.3
RoAA 0.54 0.57 0.43 0.65 0.73 P/ABV 1.7 1.4 1.3 1.2 1.0
GNPA 3.8 2.5 2.6 2.1 1.5 Dividend Yield (%) 1.6 1.3 1.9 1.9 1.9
NNPA 2.9 1.5 1.4 1.2 0.9 Cost-Income 56.6 49.2 46.5 43.5 41.1
Advances 9.9 12.9 14.0 14.8 16.0 Credit-Deposit 73.7 70.2 72.7 73.9 73.9
Borrowings 28.7 -25.1 48.6 14.8 22.3 CAR (%) 11.8 12.4 11.7 11.6 11.5
Deposit 6.9 18.7 10.0 13.0 16.0 PCR (%) 40.3 55.1 44 44 40
NII 10.5 11.0 19.8 23.7 18.7 CASA Ratio% 22.4 23.8 24.5 24.5 24.5
PPOP -0.3 38.2 22.4 26.7 21.4 (Source: Company, HDFC sec)

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NCC Ltd.
Industry CMP Recommendation Add on Dips to band Target Time Horizon
Infrastructure Rs. 132 Buy at CMP and add on dips Rs. 109-115 Rs. 162-195 1 Year
Established in 1978, as a partnership rm and converted into a limited company in 1990, NCC is
HDFCSec Scrip Code NAGCONEQNR among the top three construction companies in India in terms of revenues. NCC undertakes civil
BSE Code 500294 construction in segments such as buildings, water, roads, irrigation, power, electrical, railways,
NSE Code NCC metals, mining and has also a presence in the Middle East where it currently undertakes works in
roads, buildings and water segments. In India, it has operations in 25 out of 29 states. As a
Bloomberg NJCC IN
developer, NCC owns and operates two road projects both of which are operational. The
CMP (as on 22 Dec, 17) 132.45 company also has large land bank in Hyderabad, Bangalore, Vizag and Ranchi which it is
Equity Capital (Rs mn) 1111.9 developing through its urban infra subsidiary. NCC had an outstanding order book of ~Rs 219 bn
Face Value (Rs) 2 (3xTTM revenues) as of Q2FY18.
Equity Sh Outs. (mn) 555.9
Market Cap (Rs bn) 73.6 Key highlights
Book Value (Rs) 61.92
Avg. 52 Week Volumes 5,300,000
52 Week High 134.4
52 Week Low 75.1

NCC is among the top Pickup in government The government has

Shareholding Pattern % (Sep 2017) announced significant
three construction tendering has led to
Promoters 19.57 companies in India in NCC securing fresh infrastructure projects.
Institutions 45.61 terms of revenues orders worth Rs 149 These project could
Non Institutions 34.82 bn in 7MFY18 result in higher order
inflows in coming years
Total 100.00
Fundamental Research Analyst: Pickup in government tendering has led to NCC securing fresh orders worth Rs 149 bn in
Atul Karwa
atul.karwa@hdfcsec.com 7MFY18, most of which are short duration projects of 12-14 months. Additionally, the

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NCC Ltd.
company's 51:49 JV with BGR Mining won over Rs 250 bn mine development and operation order for Talai-Palli coal block from NTPC for 25 years
from FY20. Order-book to sales after stagnating in 2.1x-2.3x over FY16-FY17 has risen to 3.0x currently.
The government has announced significant plans for roads under Bharatmala road project, given incentives to affordable housing schemes and
budgetary support of $23 bn is expected over next 5 years for improvement in rural water supply & sanitation. Metro projects are coming up in
large cities and Government is investing in upgrading rail infrastructure and develop Eastern & Western Direct Freight corridors & High Speed
Railway. All these projects could result in higher order inflows for NCC in the coming years.
NCC Urban is monetising certain land parcels (has 311 acres across southern cities/Ranchi under development/yet to begin) and repaid part of
the debt taken from the parent during the current year. This is likely to bring down the consolidated debt of the company and reduce finance
expenses further.
With the crude prices stabilizing and inching up, capex cycle is expected to revive in the Gulf countries in the medium term.

We are positive on NCC due to the above but our estimates are conservative. It has strong Q2FY18-end
balance sheet with net D/E at 0.55x, concentrated focus on Infra EPC segment and well-diversified presence
across different sub-segments. We value NCC’s standalone business at 11x/13x FY20E EV/EBIDTA and
investments at book value.

SOTP Valuation
Particulars Segments Methodology Value (Rs mn) Value per share
NCC Standalone Construction business 11x/13x FY20 EV/EBIDTA 79838/98367 144/177
Investment in subsidiaries Book Value 10287 19
Total 64,407 162/195

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NCC Ltd.
Financial Summary
(Rs mn) FY16 FY17 FY18E FY19E FY20E
Net Revenues 83,252 78,921 75,634 89,938 1,02,256
EBITDA 7,376 6,852 6,920 8,104 9,265
APAT 2,402 2,255 2,987 2,477 2,728
Diluted EPS (Rs) 4.3 4.1 5.4 4.5 4.9
P/E (x) 30.7 32.7 24.6 29.7 27.0
EV / EBITDA (x) 12.2 12.9 13.1 11.5 10.3
RoE (%) 7.4 6.7 8.5 6.7 7.0
(Source: Company, HDFC sec)
STANDALONE FINANCIALS:
Income Statement Balance Sheet
Year ending March (Rs mn) FY17 FY18E FY19E FY20E As at March (Rs mn) FY17 FY18E FY19E FY20E
Net Revenues 78,921 75,634 89,938 1,02,256 SOURCES OF FUNDS
Growth (%) (5.2) (4.2) 18.9 13.7 Equity Capital 1,112 1,112 1,112 1,112
EBITDA 6,852 6,920 8,104 9,265 Reserves 33,311 34,608 36,822 39,288
EBITDA Margin (%) 8.7 9.15 9.0 9.1 Total Shareholders Funds 34,423 35,720 37,934 40,400
Depreciation 1,121 1,174 1,258 1,341 Total Debt 15,767 19,267 21,567 23,867
Other Income (Including EO Items) 1,401 1,051 897 628 Net Deferred Taxes, Other LT Liab, etc. (600) (600) (600) (600)
Interest 3,957 3,680 4,206 4,654 TOTAL SOURCES OF FUNDS 49,590 54,387 58,901 63,667
PBT 3,175 3,116 3,538 3,897 APPLICATION OF FUNDS
Tax (Incl Deferred) 417 843 1,061 1,169 Net Block & CWIP 6,416 6,503 6,445 6,303
Reported PAT 2,758 2,273 2,477 2,728 Investments, LT Loans & Advances 12,952 12,952 12,952 12,952
EO Items 503 (714) - - Total Non-current Assets 19,368 19,454 19,396 19,255
Adj. PAT 2,255 2,987 2,477 2,728 Inventories 15,258 15,675 18,737 21,215
APAT Growth (%) (6.1) 32.5 (17.1) 10.1 Debtors 23,501 21,758 24,640 26,614
Adjusted EPS (Rs) 4.1 5.4 4.5 4.9 Other Current Assets 28,713 31,497 35,729 37,821
Cash & Equivalents 1,095 1,920 1,764 1,792
Creditors 28,681 26,938 30,801 32,218
Other Current Liabilities & Provns 9,871 8,979 10,565 10,812
Net Current Assets 30,015 34,933 39,505 44,412
TOTAL APPLICATION OF FUNDS 49,590 54,387 58,901 63,667
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NCC Ltd.
Cash Flow Statement Key Ratios
Year ending March (Rs mn) FY17 FY18E FY19E FY20E Year ending March FY17 FY18E FY19E FY20E
Reported PBT 2,672 2,402 3,538 3,897 PROFITABILITY (%)
Non-operating & EO Items (599) (1,051) (897) (628) EBITDA Margin 8.7 9.1 9.0 9.1
Interest Expenses 3,957 3,680 4,206 4,654 APAT Margin 2.9 3.9 2.8 2.7
Depreciation 1,121 1,174 1,258 1,341 RoE 6.7 8.5 6.7 7.0
Working Capital Change (4,746) (3,885) (4,728) (4,879) EFFICIENCY
Tax Paid (436) (843) (1,061) (1,169) Asset Turnover (x) 5.8 5.0 5.6 5.9
OPERATING CASH FLOW ( a ) 1,968 1,478 2,315 3,216 Net D/E (x) 0.4 0.5 0.5 0.5
Capex (1,286) (1,261) (1,200) (1,200) PER SHARE DATA (Rs)
Investments 5,838 1,051 897 628 EPS 4.1 5.4 4.5 4.9
INVESTING CASH FLOW ( b ) 4,552 (210) (303) (572) CEPS 7.0 6.2 6.7 7.3
Debt Issuance/(Repaid) (3,068) 3,500 2,300 2,300 Dividend 0.6 0.6 0.6 0.6
Interest Expenses (4,083) (3,680) (4,206) (4,654) VALUATION
Share Capital Issuance - - - - P/E (x) 32.7 24.6 29.7 27.0
Dividend (402) (262) (262) (262) EV/EBITDA (x) 12.9 13.1 11.5 10.3
FINANCING CASH FLOW ( c ) (7,552) (442) (2,168) (2,616) Dividend Yield (%) 0.5 0.5 0.5 0.5
NET CASH FLOW (a+b+c) (1,032) 826 (156) 28
(Source: Company, HDFC sec)

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1 year price movement

Jagran Prakashan South Indian Bank

NCC Ltd

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Disclosure
Company Analyst Education Team Holding
JAGRAN PRAKASHAN NISHA SANKHALA MBA PCG NO
THE SOUTH INDIAN BANK DEVARSH VAKIL MBM PCG YES
NCC LTD ATUL KARWA MMS RETAIL RESEARCH No
HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Ofce Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042 Phone: (022) 3075 3400
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HDFC Securities Limited, SEBI Reg. No.: NSE-INB/F/E 231109431, BSE-INB/F 011109437, AMFI Reg. No. ARN: 13549, PFRDA Reg. No. POP: 04102015, IRDA Corporate Agent License No.: HDF
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