DOMESTIC:

IOC, BPCL keen to acquire GAIL; company wants to merge with

ONGC

Dilip Buildcon gets board approval to raise Rs600cr

BHEL bags Rs672cr order for 25 kV AC Mainline EMU Trains

Aditya Birla, Piramal-Bain, Shree make aggressive bids for

Binani Cement

Welspun Corp gets order for 57K MTs pipes for water project in

India

Tata Power arm wins coal mine in Russia

HCL technologies steps up focus on cyber security

Larsen & Toubro bags orders worth Rs3,355cr

McDonald's dispute: Singhvi writes to CPRL logistics partner to

resume supply

Cummins in talks to acquire Kirloskar Oil Engines in USD500mn

deal

Sun Pharma announces USFDA acceptance of new drug

application

Glenmark Pharmaceuticals receives ANDA approval for

Norethindrone Acetate and Ethinyl Estradiol Tablets

Coromandel International to acquire bio-pesticides biz of EID

Parry

Tata Steel said to seek USD5.1bn to help refinance debt

Dr.Reddy's launches anti-cancer injection in US market

Vedanta to buy majority stake in Japan's AvanStrate

DLF concludes stake sale in rental arm to GIC for Rs9,000cr

Aurobindo gets USFDA nod for deep vein thrombosis drug

Cairn India buys Japanese LCD Panel co for USD158mn

Kolte-Patil Developers to raise Rs193cr from KKR for Pune

township project

Lupin moves court fearing tax on pre-GST stock

SEBI directs Axis Bank to probe data leak

Star Cement gets Rs158cr as capital investment subsidy

Lupin gets USFDA nod for generic psoriasis treatment solution

Tata Global Beverages plans to sell 31.85% stake in Sri Lankan

plantation

Reliance Jio to buy out RCom's wireless assets

IOB to sell Rs600cr worth exposure in Bhushan Steel

ECONOMY:

GST collections dip for second month in Nov to Rs80,808cr

INDUSTRY:

Lok Sabha passes bill for GST cess hike on luxury cars to 25%

S&P puts Indian banks in 'Group 5' with Italy, Spain, UAE

TM

THE WEEKLY WRAP-UP 29th December 2017

The week that went by:

The truncated week was started on a positive

note with the indices hitting record highs. The

markets opened flat mid-week amidst the lack of

global and domestic cues. It however extended

the gains with the Sensex hitting fresh record

high. Amid the volatility ahead of December

expiry, the markets opened with mild gains. The

January series started off on a strong note backed

by positive Asian cues.

Weekly Sectoral Gainers & Losers in (%)

Price Performance (%)

Company 1M 3M 12M

Supreme Petrochem Ltd 4.7% 1.3% 96.1%

Shanthi Gears Ltd 14.7% 25.2% 47.1%

Hind Rectifiers Ltd 9.6% 18.8% 52.8%

KCP Ltd 8.6% 20.3% 65.8%

Harita Seating System Ltd 4.3% 26.2% 44.0%

Hester Biosciences Ltd 58.5% 75.2% 162.7%

Rallis India Ltd 8.0% 27.4% 38.8%

The Hi-Tech Gears Ltd 37.0% 65.2% 92.4%

Bharat Bijlee Ltd 15.2% 16.9% 70.7%

TNPL 16.4% 27.1% 34.4%

Triveni Turbines Ltd -2.7% 3.8% 12.3%

Siemens Ltd 3.2% 4.3% 13.4%

Hikal Ltd -2.6% 9.5% 10.9%

Aksh Optifibre Ltd 3.9% 54.5% 47.4%

GMM Pfaudler Ltd 30.6% 39.1% 55.9%

Alicon Castalloy Ltd 23.2% 29.3% 98.8%

Premier Explosives Ltd 6.8% 2.3% 30.1%

Gufic Biosciences Ltd 33.8% 55.7% 141.5%

Excel Industries Ltd -4.4% 50.2% 84.5%

Vesuvius India Ltd 18.9% 16.2% 30.6%

Munjal Showa Ltd 4.6% 10.6% 55.2%

Bharat Rasayan Ltd 10.1% 50.8% 138.5%

Alkyl Amines Chemicals Ltd 12.6% 54.0% 119.7%

Grauer and Weil (India) Ltd -3.5% 13.1% 119.5%

Texmaco Rails & Engineering Ltd -9.2% 13.0% 1.1%

Nagarjuna Agrichem Ltd 19.5% 28.5% 153.9%

Simplex Infrastructures Ltd 4.7% 30.2% 96.6%

Sadhana Nitrochem Ltd 38.3% 35.8% 242.0%

ITD Cementation India Ltd 2.2% 26.1% 46.4%

Westlife Development Ltd 1.4% 37.5% 99.1%

Federal Mogul Goetze (India) Ltd 1.4% 8.0% 7.8%

Cupid Limited 15.0% 10.0% -1.3%

Dynamatic Technologies Ltd 6.3% 1.0% -23.7%

Hitech Corporation Ltd 4.6% 4.0% 16.9%

NRB Bearings Ltd 13.3% 44.7% 61.4%

Kokuyo Camlin Ltd 5.2% 44.0% 67.3%

Timken India Ltd 2.2% 13.6% 45.4%

Indian Hume Pipe Co. Ltd -5.2% -7.5% 139.0%

Engineers India Ltd 8.2% 34.3% 19.3%

TRIL 34.2% 27.1% 25.7%

Gulshan Polyols Ltd 2.3% 7.2% 481.1%

Nesco 0.4% 1.1% 38.1%

Castrol India Ltd -4.0% 7.3% 2.3%

TM

*Castrol, Vesuvius, ITD Cementation– Dec Ending | Siemens—Sept ending|

Recommendations adjusted as per Corporate Actions

Company Reco Target Corp Action Adj Price Adj Tgt Price Appreciation

IHP Ltd 341 600 Bonus 1 : 1. 171 600 166%

Engineers India Ltd 211 200 Bonus 1 : 1. 106 250 90%

Transformers and Rectifiers (India) Ltd 300 450 Stock Split from Rs.FV 10 to Rs.FV 1. 30 55 40%

Gulshan Polyols Ltd 390 500 Stock Split from Rs.FV 5 to Rs.FV 1. 78 110 10%

Nesco Ltd 2397 3200 Stock Split from Rs.FV 10 to Rs.FV 2. 479 640 10%

Castrol India Ltd 447 550 Bonus 1 : 1 223 275 -14%

Coverage Universe Valuations

Company Reco Adj

Reco

CMP Tgt price Upside Mcap EPS PE(x) EV/EBITDA (x)

(Rs) (Rs) (Rs) (%) (Rs bn) FY17 FY18E FY17 FY18E FY17 FY18E

IHP Ltd BUY 171 454 600 32.2 22.0 18.4 25.5 24.7 17.8 44.0 47.6

Engineers India Ltd BUY 106 200 200 25.3 67.3 4.8 4.7 41.4 42.5 9.4 16.3

Transformers and Rectifiers (India) Ltd BUY 30 42 40 31.0 0.6 5.6 5.6 4.3 2.8 5.6 5.6

Gulshan Polyols Ltd BUY 78 86 110 27.9 4.0 5.9 6.4 14.5 13.4 8.6 7.5

Nesco Ltd BUY 479 528 640 21.2 7.4 120.2 137.5 4.4 3.8 17.4 14.5

Castrol India Ltd BUY 223 193 275 42.4 95.5 14.4 14.9 13.4 13.1 8.0 7.8

Coverage Universe Valuations

Company Reco Reco at CMP Tgt price Upside Mcap EPS PE(x) EV/EBITDA (x)

(Rs) (Rs) (Rs) (%) (Rs bn) FY17 FY18E FY17 FY18E FY17 FY18E

Supreme Petrochem Ltd BUY 77 382 500 30.9 36.9 18.6 19.9 20.5 19.2 12.1 11.4

Shanthi Gears Ltd BUY 107 163 200 22.4 13.3 2.8 3.1 59.3 53.0 37.4 32.9

Hind Rectifiers Ltd BUY 69 133 175 32.0 2.0 -4.5 0.5 -125.0 261.1 49.4 33.4

KCP Limited BUY 71 137 150 9.4 17.7 3.6 4.6 60.5 37.6 14.4 12.5

Harita Seating System Ltd BUY 266 958 1150 20.1 7.4 32.4 34.5 29.5 27.8 27.0 22.6

Hester Biosciences Ltd BUY 565 1866 2200 17.9 15.9 29.2 34.2 63.8 63.0 39.4 33.5

Rallis India Ltd BUY 181 265 300 13.4 51.5 15.3 11.2 29.7 23.6 19.6 16.5

The Hitech Gears Ltd BUY 298 565 600 6.2 10.6 10.9 11.1 52.0 51.8 21.7 19.1

Bharat Bijlee Ltd BUY 787 1296 2000 54.4 7.3 34.7 39.3 37.3 32.9 49.2 29.7

Tamil Nadu Newsprint & Papers Ltd BUY 224 446 450 1.0 30.9 38.2 36.6 11.7 12.2 24.5 23.3

Triveni Turbines Ltd BUY 92 134 175 30.6 0.4 3.5 3.6 38.1 37.0 27.0 25.4

Siemens Ltd BUY 1128 1237 1500 21.3 440.3 9.1 10.0 136.1 123.9 41.7 92.9

Hikal Ltd BUY 143 234 325 38.9 19.2 8.1 8.7 28.8 26.9 11.9 10.9

Aksh Optifibre Ltd BUY 15 35 45 28.6 5.7 3.4 5.5 10.3 6.4 6.7 4.8

GMM Pfaudler Ltd BUY 332 828 1000 20.8 12.1 19.3 21.1 42.9 39.3 29.4 26.9

Alicon Castalloy Ltd BUY 288 702 750 6.8 8.6 21.4 24.1 32.9 29.1 12.3 11.0

Premier Explosives Ltd BUY 350 436 600 37.7 3.9 16.6 15.3 26.3 28.5 14.8 12.0

Gufic Biosciences Ltd BUY 50 127 140 9.9 9.8 1.5 2.0 86.5 63.8 38.3 29.0

Excel Industries Ltd BUY 380 629 800 27.1 8.1 35.8 25.1 17.6 25.1 20.3 13.1

Vesuvius India Ltd BUY 1165 1391 1500 7.8 27.8 49.0 65.0 28.4 21.4 15.6 12.6

Munjal Showa Ltd BUY 191 285 300 5.3 11.4 14.1 15.1 20.2 18.9 12.0 11.5

Bharat Rasayan Ltd BUY 2747 4174 5000 19.8 17.5 128.1 141.2 32.6 29.6 17.1 15.4

Alkyl Amines Chemicals Ltd BUY 391 670 700 4.5 13.7 24.3 29.2 27.6 23.0 16.0 15.1

Grauer and Weil (India) Ltd BUY 45 70 80 13.6 16.0 2.3 2.3 31.2 30.1 17.7 17.3

Texmaco Rails & Engineering Ltd BUY 91 112 170 51.5 20.2 1.5 2.7 73.3 41.7 47.5 29.3

Nagarjuna Agrichem Ltd BUY 29 56 60 7.4 8.7 2.3 0.9 24.1 63.7 17.4 16.2

Simplex Infrastructures Ltd BUY 540 582 700 20.3 20.2 24.3 30.5 23.9 19.1 5.6 4.8

Sadhana Nitrochem Ltd BUY 67 94 100 6.3 0.9 2.5 5.5 38.2 17.0 13.3 10.6

ITD Cementation India Ltd BUY 158 215 225 4.5 33.4 4.8 2.9 44.9 73.7 16.0 22.5

Westlife Development Ltd BUY 266 330 425 28.8 51.3 -0.8 0.3 -422.8 966.1 113.0 68.3

Federal Mogul Goetze (India) Ltd BUY 540 531 750 41.3 29.5 12.9 15.7 41.0 33.7 16.9 15.3

Cupid Limited BUY 286 303 340 12.4 3.4 18.5 23.4 16.3 12.9 9.8 8.3

Dynamatic Technologies Ltd BUY 2160 2172 3000 38.1 13.8 23.0 30.4 52.7 67.7 11.2 11.1

Hitech Corporation Ltd BUY 175 181 230 27.4 3.1 6.9 7.2 25.4 24.2 9.7 8.5

NRB Bearings Ltd BUY 138 173 200 15.9 16.7 5.3 5.5 26.4 25.0 15.0 14.4

Kokuyo Camlin Ltd BUY 132 133 175 32.0 13.3 0.1 0.3 1401.2 529.0 65.0 56.0

Timken India Ltd BUY 883 884 1200 35.7 60.1 14.3 15.1 61.8 58.4 38.0 33.0

TM

Calls Closed

Company Reco Reco at Closed price Company Reco Reco at Closed price

(Rs) (Rs) (Rs) (Rs)

KEC International Ltd BUY 140 240 Mukand Engineers Ltd BUY 33 56

Rajoo Engineers Ltd BUY 15 30 Camlin Fine Chemicals Ltd BUY 111 87

Omkar Speciality Chemicals Ltd BUY 162 90 West Coast Paper Mills Ltd BUY 67 187

Navneet Education Ltd BUY 96 159 GEE Limited BUY 33 44.5

MM Forgings Limited BUY 607 856

*Omkar: Spin off

*Castrol, Vesuvius, ITD Cementation– Dec Ending | Siemens—Sept ending|

Recommendations adjusted as per Corporate Actions

Company Reco Target Corp Action Adj Price Adj Tgt Price Appreciation

IHP Ltd 341 600 Bonus 1 : 1. 171 600 166%

Engineers India Ltd 211 200 Bonus 1 : 1. 106 250 90%

Transformers and Rectifiers (India) Ltd 300 450 Stock Split from Rs.FV 10 to Rs.FV 1. 30 55 40%

Gulshan Polyols Ltd 390 500 Stock Split from Rs.FV 5 to Rs.FV 1. 78 110 10%

Nesco Ltd 2397 3200 Stock Split from Rs.FV 10 to Rs.FV 2. 479 640 10%

Castrol India Ltd 447 550 Bonus 1 : 1. 223 275 -14%

Coverage Performance Sheet

Company Reco at CLS Target Price (Rs) Appreciation

(Rs) (Rs) Target 1 Target 2 Target 3 Target 4 Target 5 Target 6 Target 7 (%)

Supreme Petrochem Ltd 77 382 120 150 200 275 350 500 - 396%

Shanthi Gears Ltd 107 163 150 200 - - - - - 53%

Hind Rectifiers Ltd 69 133 110 140 175 - - - - 92%

KCP Limited 71 137 105 150 - - - - - 93%

Harita Seating System Ltd 266 958 400 600 750 900 1150 260%

Hester Biosciences Ltd 565 1866 750 875 1150 1500 1750 2200 - 230%

Rallis India Ltd 181 265 260 300 - - - - - 46%

The Hitech Gears Ltd 298 565 450 600 - - - - - 90%

Bharat Bijlee Ltd 787 1296 1100 1500 2000 - - - - 65%

Tamil Nadu Newsprint & Papers Ltd 224 446 350 450 - - - - - 99%

Triveni Turbines Ltd 92 134 135 175 - - - - - 46%

Siemens Ltd 1128 1237 1500 - - - - - - 10%

Hikal Ltd 143 234 200 250 325 - - - - 64%

Aksh Optifibre Ltd 15 35 24 35 45 - - - - 133%

GMM Pfaudler Ltd 332 828 500 700 800 1000 - - - 149%

Alicon Castalloy Ltd 288 702 450 600 750 - - - - 144%

Premier Explosives Ltd 350 436 450 525 - - - - - 25%

Gufic Biosciences Ltd 50 127 75 100 140 - - - - 155%

Excel Industries Ltd 380 629 550 650 800 - - - - 66%

Vesuvius India Ltd 1165 1391 1500 - - - - - - 19%

Munjal Showa Ltd 191 285 250 300 - - - - - 49%

Bharat Rasayan Ltd 2747 4174 3500 4250 5000 - - - - 52%

Alkyl Amines Chemicals Ltd 391 670 550 700 - - - - - 71%

Grauer and Weil (India) Ltd 45 70 65 80 - - - - - 57%

Texmaco Rails & Engineering Ltd 91 112 125 170 - - - - - 23%

Nagarjuna Agrichem Ltd 29 56 45 60 - - - - - 93%

Simplex Infrastructures Ltd 540 582 700 - - - - - - 8%

Sadhana Nitrochem Ltd 67 94 100 - - - - - - 40%

ITD Cementation India Ltd 158 215 225 - - - - - - 36%

Westlife Development Ltd 266 330 350 425 - - - - - 24%

Federal Mogul Goetze (India) Ltd 540 531 750 - - - - - - -2%

Cupid Limited 286 303 340 - - - - - - 6%

Dynamatic Technologies Ltd 2160 2172 3000 - - - - - - 1%

Hitech Corporation Ltd 175 181 230 - - - - - - 3%

NRB Bearings Ltd 138 173 200 - - - - - - 25%

Kokuyo Camlin Ltd 132 133 175 - - - - - - 0%

Timken India Ltd 883 884 1200 - - - - - - 0%

Coverage News:

McDonald's dispute: Singhvi writes to CPRL logistics partner to resume

supply Justice G S Singhvi, the administrator on the CPRL board, has written to its logistics

partner Radhakrishna Foodland to resume supplies to the restaurant chain immediately

so that the outlets shut in East and North India can restart operations. McDonald's

estranged JV partner Vikram Bakshi said nearly all outlets of the food chain in East

India have been shut and several others in the north are on the brink of closure due to

discontinuation of supplies by its logistics partner. As the further development, CRPL

has partnered with a new logistics firm and gradually would open the closed stores.

Our comments: There are various chain reactions amidst of the battle, but any negatives on the North

and East front, stands to be a positive for Westlife Development, the only candidate

that could replace it in that domain. The developments need to be closely watched to

gauge the benefits that Westlife stands for.

Target Price Revision:

Hester Biosciences Ltd: We had initiated Buy on the stock with a target of Rs1500

which was achieved and further revised to Rs1750. The revised target has also been

breached and we further revise the target to Rs2200 over a 12 months horizon. We

recommended to book 10% profits in the same.

GMM Pfaudler Limited: We had initiated Buy call on the stock with the target

price of Rs500, Rs700 and Rs800. All of these have been achieved. We further revise

the target to Rs1000 over a 12 months horizon. We recommended to book 20% profits

in the same.

Bharat Rasayan Limited: We had initiated Buy on the stock with a target price of

Rs3500 which was achieved and revised to Rs4250. This has also been beached and we

further revise the target to Rs5000 over a 12 months horizon.

ECONOMY:

GST collections dip for second month in Nov to Rs80,808cr India's goods and services tax (GST) collections fell to the lowest since the tax regime

was put in place in what could further queer the pitch for the Centre to keep up with

the budgeted fiscal math for FY18. The decline is partly because of sharp cuts in the

tax on close to 200 items from November 15. Total collections in November added up

to Rs80,808cr, down from a provisional Rs83,346cr in October and a peak of over

Rs94,000cr in July.

Our comments:

As per market experts, the dip in collection in revenue for November is on expected

lines, as rates of over 175 items were reduced from November 15 and refunds to

exporters started recently. Further, even for December, there could be an impact of

opening credit claim for which the last date is December 27. From January onwards,

the collections should stabilise.

TM

Dispute of Mcdonalds and

CRPL continues

Target Price revisions

Drop in GST collections in

Nov

INDUSTRY:

Lok Sabha passes bill for GST cess hike on luxury cars to 25% The Lok Sabha approved a bill to raise the maximum cess levied on luxury cars from

15% to 25%, a move aimed at enhancing central funds to compensate states for

revenue loss due to the implementation of the goods and services tax (GST). Our comments:

The prices of luxury vehicles like Mercedes Benz came down by Rs3 lakh. After this

bill is passed, the benefit will accrue to respective states and the central kitty will also

see an increase.

S&P puts Indian banks in 'Group 5' with Italy, Spain, UAE The Indian banking sector has been classified under 'Group 5' along with countries

such as Italy, Spain, Ireland, the UAE and South Africa by rating agency Standard &

Poor's (S&P) on the basis of their economy and industry risk criteria.

Our comments:

Noting that the "low-income" Indian economy and the government's limited fiscal

flexibility constrain the country's economic resilience, S&P in its "Banking Industry

Country Risk Assessment: India", however, said the medium-term outlook for growth

remains healthy, which "provide sound development opportunities for Indian banks".

COMPANY:

BHEL bags Rs672cr order for 25 kV AC Mainline EMU Trains Bharat Heavy Electricals has secured a contract for 146 sets of IGBT-based 3 phase

electrics for 25 KV AC Mainline EMU (MEMU) trains. Valued at Rs672cr, the order

has been placed on BHEL by Rail Coach Factory (RCF), Kapurthala. BHEL's scope of

the work in the order envisages design, manufacture, supply, installation and

commissioning of IGBT-based propulsion system and other equipment for MEMU

trains of Indian Railways. The system and equipment to be deployed in the project will

be developed and produced by BHEL at its various manufacturing plants located at

Bengaluru, Bhopal and Jhansi.

Our comments:

Till date, BHEL has supplied 360 electric locomotives of various ratings to Indian

Railways apart from over 370 Diesel Electric Shunting Locomotives to various

industries.

Welspun Corp gets order for 57K MTs pipes for water project in India Welspun Corp announced that it has received an order from a customer in India for

supply of 57K MTs pipes for a water project in India. With the addition of this order,

the company has a current order book of 1074K MTs worth Rs64bn.

Our comments:

This is a boost to the order book of the company.

Tata Power arm wins coal mine in Russia Tata Power said its Russian subsidiary Far Eastern Natural Resources LLC has bagged

the mining licence for a thermal coal mine in Kamchatka province in Far East Russia.

The subsidiary participated in the financial auction process at Petropavlovsk,

Kamchatka today (on December 22, 2017) and was awarded a license at approximately

USD4.7mn as indicated by the company. The Kamchatka project site has been

declared as special economic zone and will qualify for various concessions including

protection against change of laws. It said the coal mine has high quality thermal coal

reserves of 380 million tonnes, which the company aims to deploy for its facilities in

Mundra and Trombay as also, sell in Far East Asian markets.

Our comments:

The company intends to carry out a detailed exploration and implement the project in a

phased manner to reach a stable throughput of 8-10 million tonnes per annum.

TM

Indian banks in Group5

ratings

Water project orders for

Welspun

Coal mine for Tata Power

Orders for BHEL

Cess on luxury cars

increased

COMPANY:

Larsen & Toubro bags orders worth Rs3,355cr Larsen & Toubro (L&T) said its construction arm has won orders worth Rs3,355cr.

The orders include design and construction of India International Convention & Expo

Centre (IICC) in the national capital. The business also secured a contract to construct

a major retail development in Navi Mumbai for IKEA. The construction for the

proposed development will start in early 2018. Another order is to construct "Viveka

Tirtha" Ramakrishna Mission Centre for Human Excellence at Kolkata.

Our comments:

Overall addition of orders is a booster to the business of the company.

Cummins in talks to acquire Kirloskar Oil Engines in USD500mn deal The Cummins Group is in talks to acquire a controlling stake in Kirloskar Oil Engines

Ltd in a deal valued at over USD500mn through one of its Indian subsidiaries. As per

sources, there have been initial rounds of discussions with several potential buyers,

including a few global private equity funds, but talks with Cummins are progressing

well.

Our comments:

The acquisition is a natural fit for Cummins which is largely present in the segment

and will consolidate its market position.

Sun Pharma announces USFDA acceptance of new drug application Sun Pharma announced that the US FDA has accepted a new drug application (NDA)

filed by its wholly owned subsidiary, for OTX-101 (cyclosporine A, ophthalmic

solution) 0.09%, a novel nanomicellar formulation of cyclosporine A 0.09% in a clear,

preservative-free aqueous solution. OTX-101 is now under review for approval by the

USFDA, marking an important developmental milestone for Sun Pharma’s Dry Eye

candidate.

Our comments:

According to some reports the Dry Eye drug market in US is close to USD1.8bn. This

is a positive development for Sun Pharma.

Coromandel International to acquire bio-pesticides biz of EID Parry Coromandel International is going to acquire bio-pesticides business of EID Parry for

Rs338cr. The company has signed a term sheet to acquire a bio-pesticides business of

EID Parry together with its wholly owned subsidiary Parry America, Inc, USA,

through a slump sale. The said transaction is subject to receipt of approval of the

shareholders and other relevant authorities.

Our comments:

Complementary market presence in both Indian and global markets provides

opportunity for both chemical and bio-pesticides to grow. Post-acquisition,

Coromandel will further strengthen its position in the crop protection segment.

Dr.Reddy's launches anti-cancer injection in US market Dr.Reddy's Laboratories has launched Melphalan Hydrochloride for Injection, a

therapeutic equivalent generic version of Alkeran (melphalan hydrochloride) for

injection, in the United States market. Alkeran brand and generic had US sales of

approximately USD107mn MAT (Moving Annual Turnover) for the most recent

twelve months ending October 2017.

Our comments:

This is an addition to the offerings of the company in the anticancer space.

TM

L&T bags orders

Cummins to acquire

Kirloskar Oil Engines

DRL launches anticancer

injection in the US

Coromandel to acquire

EID parry’s bio pesticide

biz

NDA approval for Sun

Pharma

COMPANY:

Lupin gets USFDA nod for generic psoriasis treatment solution Lupin Ltd has received final approval from the US health regulator for its generic

version of Dovonex scalp solution used in treatment of psoriasis of scalp. It is for

strength of 0.005% (scalp solution). It is the generic equivalent of Dovonex scalp

solution of Lep Pharmaceutical Products Ltd. It is used for topical treatment of chronic,

moderately severe psoriasis of the scalp.

Our comments:

As per the IMS data, the company said Calcipotriene topical solution had annual sales

of USD5.9mn in the US till October this year.

Tata Global Beverages plans to sell 31.85% stake in Sri Lankan

plantation Tata Global Beverages Ltd (TGBL) has agreed to sell its 31.85% stake in Watawala

plantations in Sri Lanka to Colombo-based Sunshine Holdings Plc. In line with its

strategy of focussing on packet tea businesses in key geographies, TGBL will sell its

stake in joint venture Estate Management Services Pvt. Ltd, the managing agent for the

Watawala plantations, for Rs120cr.

Our comments:

Apart from tea, Watawala plantations produce palm oil and dairy products. Over the

years, TGBL has been withdrawing from the plantations business. The management

was reviewing its investments in plantations, adding that a decision was soon to be

taken about the two Indian plantations in which the company was still invested.

Reliance Jio signs pact to buy most of RCom’s wireless assets Reliance Jio Infocomm Ltd will buy a majority of the wireless assets of Reliance

Communications Ltd (RCom) in a deal that will give the Reliance Jio access to 4G

spectrum. Both the companies, in separate statements, said that Jio has emerged as the

highest bidder and signed binding agreements with RCom for sale of wireless

spectrum, tower, optical fibre network and media convergence node assets. The

acquisition is subject to receipt of requisite approvals from government and regulatory

authorities, consent from all lenders, release of all encumbrances on the assets and

other conditions, it added

Our comments: The deal appears to be a win-win for both as Jio gets most of RCom’s assets, giving it

more firepower in its telecom business, while the Rcom will reduce its debt overhang

substantially.

Indian Overseas Bank to sell Rs600 crore worth exposure in Bhushan

Steel Indian Overseas Bank (IOB) is selling Rs600 crore worth exposure in debt-laden steel

firm Bhushan Steel Ltd. Assets Care and Reconstruction Enterprise Ltd (ACRE), an

asset reconstruction company sponsored by SSG Capital Management, Axis Bank Ltd

and Punjab National Bank, has emerged as the front runner for the debt purchase.

Our comments: Sale of loan will allow IOB to exit its exposure in Bhushan Steel swiftly. Eventually

the bank will have to bear the same loss if the haircut under the resolution plan is

higher than the value at which the loan was sold to ARC.

TM

USFDA nod for Lupin

TGBLs gradual exit from

plantation business

IOC to sell Bhushan’s

Exposure

Reliance Jio Buys

Rcom’s Wireless Assets

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