Chola Wealth Direct Broker Research reports

Background: Maruti is a subsidiary of Suzuki Motor. Maruti pays ~6.1% on sales as royalty to parent. Maruti is India's largest passenger car company, which primarily sells compact hatchbacks (75% of volumes), Utility vehicles and sedans. Its key models are Alto, Wagon R, Swift and Dzire, Baleno and Brezza. With its early-mover advantage in the Indian market, Maruti is a dominant player in the domestic passenger car market with a ~ 45% market share. Maruti has over 1200...

Background: Supreme Industries (SI) is a plastic product manufacturer and the largest plastic processor in India, processing over 0.28mn MT annually. Company has four business verticals i.e. Plastic Piping (52%), Packaging Products (21%), Industrial Products (19%) and Consumer Products (8%). SI has 22 manufacturing plants situated across India. Company enjoys a significant market share across its business verticals; Plastic Piping (9.48%), Industrial Products (15%) and Consumer Products (13%). Supreme Industries is the market leader in the Packaging Products segments like XLPE (50%), EPE Foam (36%), Cap Cell (30%) and Air Bubble Film (18%). SI's...

Background: Karur Vysya Bank (KVB) is one of the mid-sized banks in the private sector space, operates through a network of 706 branches and about 1,711 ATMs. KVB's business - 82% is concentrated in South India with about 73% of its branch footprint in Tamil Nadu and Andhra Pradesh. As of 3QFY17 the total business stood at INR 935bn. The bank is capitalized with a total CAR of 11.93% (Basel III). Gross NPAs were reported at 2.66% with provision...

Global Deposits grew by (5.2%YoY, 3.1% QoQ) to INR 1836bn driven by growth in domestic deposits (5.9%YoY, 3.4% QoQ) to INR 1782bn. Growth was largely driven by increase in CASA base (33.5% YoY, 19.3% QoQ) due to the impact of demonetization...

Background: HCL Tech is the 4th largest IT services exporter offering offshore IT Services. In 3QFY17: Revenue split, Americas: 61.9%, Europe: 29.6% & ROW: 8.5%. Service Mix: Application development & maintenance: 37.5%, Infrastructure Services: 39.8%, Engineering and R&D; services: 18.6% business process management: 4.0%. Managed services and fixed price contracts account for 63.2%, while time and material 36.8%. Major verticals are Manufacturing: 33.9%, Financial Services: 24.3%, Healthcare: 12.0%, Retail and CPG: 9.4%, Media: 8.9%, Public Services: 11.2% & others: 0.4%. Company has 8 clients in USD...

Background: Persistent Systems is one of the leading outsourced product development (OPD) companies in India. 3QFY17: Revenue share from Services business (71.6%) & the IP -led business (28.4%). The company has domain expertise in ISV (42.5%), Enterprise (29.1%) and IP Led (28.4%). Company has strong workforce of 9,389 employees. The company's business is spread across North America (86.6%), Europe (5.3%) and RoW (8.1%). Company earns revenue from global delivery centers (26.7% ), India (44.9%) and IP Led (28.4%). Total active clients stood at 654 including services and IP led business. Company's top client accounts 29.5% in...

Background: Asian Paints is the largest paint company in India with a market share of 50% within organised players and ranks among the top 10 decorative coating companies globally. It operates in 17 countries with 24 manufacturing facilities. Further, through subsidiaries - Berger International Limited, Apco Coatings, SCIB Paints and Taubmans it is also present in the international markets. Domestic operations however account for a predominant share of its profits. Asian Paints has ~28,000 dealers...

Background: Mindtree is mid-cap IT Company with FY16 revenues of INR 46.9bn. In 3QFY17: Revenue share by Geography mix: North America (68.7%), Europe (20.8%), India (3.1%) and ROW (7.4%). Revenue share by service mix: Application development & maintenance (39.9%), IMS (20.3%), Testing (12.6%), Consulting, package Implementation & IP led (17.7%) and Engineering services (9.5%). Revenue share by Vertical mix: BFSI (24.1%), retail CPG & Manufacturing (24.1%), Transport & Hospitality (15.1%), technology Media & Entertainment (36.7%). The company has 16,099 employees spread across 27 offices to cater to 348 clients, which includes...

Deposits grew (15.9%YoY, 4%QoQ) to INR 277.5bn in 3QFY17 supported by growth of CASA by 49.8%YoY due to the impact of demonetization. The current CASA ratio stands at 21.4% as against 17.3% at 2QFY17. Credit to Deposit ratio currently stands at 71% as...