WWRR Vol.2.017

Strategy
India
Exhibit 13: We recommend mid-cap. stocks in automobiles & components, banks, capital goods, diversified financials and gas utilities
KIE mid-cap. model portfolio
Fair
Price Value Upside Mkt cap. EPS (Rs)
PER (X) PBR (X) RoE (%)
Company Sector Rating (Rs) (Rs) (%) (Rs bn) (US$ mn) 2019E 2020E 2021E 2019E 2020E 2021E 2019E 2020E 2021E 2019E 2020E 2021E
CESC Electric Utilities BUY 669 790 18 89 1,269 89 106 114 8 6 6 0.7 0.7 0.6 9 11 11
Cholamandalam Diversified Financials ADD 1,260 1,425 13 197 2,819 75 91 114 17 14 11 3.4 2.8 2.4 21 21 22
Escorts Automobiles & Components BUY 706 1,050 49 60 1,239 57 67 75 12 11 9 2.1 1.8 1.6 17 17 17
Equitas Holdings Banks BUY 125 160 28 43 611 4 8 11 28 15 11 1.8 1.6 1.4 6 11 13
Federal Bank Banks BUY 93 105 13 185 2,645 6 8 10 15 12 10 1.5 1.4 1.3 9 12 13
Jubilant Foodw orks Hotels & Restaurants BUY 1,252 1,370 9 165 2,365 24 33 43 51 38 29 12.4 9.5 7.3 28 29 29
Kalpataru Pow er Transmission Capital Goods BUY 392 540 38 60 862 30 36 42 13 11 9 1.9 1.7 1.4 16 16 17
Laurus Labs Pharmaceuticals BUY 380 460 21 40 578 15 28 33 25 14 11 2.5 2.1 1.8 10 17 16
Max Financial Services Insurance BUY 445 510 15 120 1,711 6 6 6 71 70 69 — — — 8 8 8
Mindtree IT Services ADD 865 1,080 25 142 2,032 45 55 63 19 16 14 4.4 3.7 3.2 25 26 25
Petronet LNG Gas Utilities BUY 224 280 25 336 4,813 16 18 21 14 12 11 3.2 2.9 2.6 23 24 25
Prestige Estates Projects Real Estate ADD 220 270 23 82 1,180 6 7 8 34 29 27 1.7 1.6 1.5 5 6 6
Sadbhav Engineering Capital Goods BUY 211 340 61 36 519 15 18 19 14 11 11 1.7 1.5 1.3 13 14 13
Shriram City Union Finance Diversified Financials ADD 1,575 1,875 19 104 1,488 142 158 189 11 10 8 1.8 1.6 1.4 16 16 16
Shriram Transport Diversified Financials BUY 1,240 1,450 17 281 4,027 107 124 143 12 10 9 1.9 1.7 1.5 17 17 17
Source: Companies, Kotak Institutional Equities estimates
KOTAK INSTITUTIONAL EQUITIES RESEARCH 9