Unnati- Investment

Management Research Group

MDI Gurgaon

Presented By: Aayush Chelawat

Varun Baxi
Anish Prakash Surana
 ABOUT US Sectors Tracked:
Total Assets Under Management: Rs. 28,32,613
1. Auto and Ancillaries
Mutual Funds: Diversified and MidCap funds
2. Banking, Financial Services & Insurance
Sectors covered: 11
3. Chemicals, Fertilizers, Agriculture & Sugar
Junior Security Analysts: 21
4. FMCG, Durables, Retail & Breweries
Senior Security Analysts: 11
5. Infrastructure, Construction & Real Estate
Investment Coordinators: 02
6. IT, ITeS, Telecom, Media & Education
Diversified Fund 7. Metals, Cement, Paper & Commodities
Stocks invested in: 30 8. Oil & Gas
Assets under management: Rs. 9. Pharmaceuticals & Healthcare
13,29,590 10. Power & Capital Goods
MidCap Fund 11. Shipping, Aviation, Transportation & Logistics
Stocks invested in: 38
Assets under management: Rs.
13,53,023 Unnati Diversified vs. NIFTY
200 Unnati Midcap vs. NIFTY MidCap 200
155 159
150 150 127
115
100 100

50 50

0 0

Nifty Midcap 50 NIFTY Unnati Diversified

Investment Philosophy

Basic Sector Screening

Opportunity Size Upside Potential of Industry

Differentiated Business Models

MOAT Competitive Advantage
Entry Barriers

Corporate Management Background

Business with Related Parties
Governance Compensation and Agent-Participant Relationship
Background Accounting Policies

Strong Track Record of Past

Management Dependency
Professional Management
Credentials
Investment Philosophy

Bright Strong Earnings Visibility

Ease in Understanding the Business

Future Predictability for next four to five years

Risk Non-self sustaining businesses

Seasonal Businesses

Aversion Subsidy Driven Business

Revenue Growth

Financials
RoE/RoCE
Cash Flows
Peer Comparison

Market Market Share

Leadership
Bargaining Power
Jamna Auto Industries Profit Variation
120
Market leader, 3rd Largest leaf spring
manufacturer globally. 100

CV segment is expected to grow at about 80

20% in FY17 leading to volume growth of
60
about 24% for JAI
40
Long term contract with almost all the OEMs
20
One of the major beneficiaries of GST. Which
will act as both the demand puller as well as 0
Y2010 Y2011 Y2012 Y2013 Y2014 Y2015
will reduce the cost of production thus giving
JAI a good opportunity to enter into the Operating Profit PAT
replacement market
Large product portfolio of springs ranging Chart Title
from springs of 3 kg to 350 Kg. Development 1400 45
and approval of a product usually takes 1200 40
9~12 months thus posing entry barrier. 35
1000
30
Capacity expansion from 180000 MT to 800 25
220000 MT.
600 20
Replacement market share expected to grow 400
15
and JAI has huge potential considering its 10
200
present share at 11~12%. 5
0 0
Company has given the guidance of raising Y2010 Y2011 Y2012 Y2013 Y2014 Y2015
the export volumes by 5x. Gross Sales ROCE RONW
 Jagran Prakashan 25

Robust growth in advertisement revenues: The radio 20

business has started contributing 13-15% of the total
advertisement revenue which is expected to grow robust in future.
The advertisement growth in media will show growth by 12-15% 15
CAGR in the coming years due to strong GDP growth of India. JPL
will be a strong beneficiary of this growth holding a leadership 10
position in diff. states mainly UP, Bihar,etc.
Radio Business to play a bigger role in future: After the
Phase III auctions, radio industry will be the next growth story in
the M&E industry. With 1st batch of Phase III radio auctions, their PE
presence has scaled up to 39 stations across the country thus,
giving them a nation-wide presence.
150
Keeping Profitability Margins Intact: The Company has
always had strong fundamentals and the management is very
120
clear about keeping the OP to be above 28% and targeting to
reach 33-35% in the next two years which is possible due to lower
90
costs and improving productivity.
Control over raw material costs: Main raw material for printing
60
is newsprint, its hold ~90-94% of total direct cost which is
continuously showing downward trend due to lower commodity
and petroleum input cost, significant correction in the raw material
cost along with stable cover prices give further boost to margins. Indexed Share Price Indexed Nifty
Indexed Nifty Media
 Cipla Ltd.
Medpro acquisition for South African market
Celeris Acquition for exposure in European Market
which is growing at 40% now for Cipla
Launched Jaagruti program to improve its
operational efficiency
22 ARVs in portfolio and a dozen more in the
development pipeline
Brought new R&D centre at Vikhroli, Mumbai
Increased focus on Northen European Market,
Africa, Yemen and Nepal
Invagen Acquisition
Peer Comparison
Entry into Consumer Healthcare Business and
Biologics Company
YoY share price Growth
Current P/E
(%)
Strategic focus and steps taken on improving
Sun Pharma -12.6% 38.52
pipeline and technology. It has over 200 formulation
development projects underway DRL -14.41% 23.67
Vast improvement in the operational and supply Cipla -0.3% 31.78
chain efficiency through Jagruti Program
Aurobindo Pharma -24.4% 29.17
Expected improvement in domestic market growth
by the introduction of new products in the future Torrent Pharma 47.1% 20.18
Strong two-quarter growth in the FY2016
 Student Awareness
Monthly newsletters and NAV sheet
Annual sector reports prepared by thorough research and sent to
the Unnati Alumni as well
Sector Presentations to whole MDI
Batch Presentation focusing on investment instruments and
benefits offered by mutual funds
General Awareness and Inquisitiveness increases amongst
students
Value Investing Conclaves
Finance-related Query solving sessions and Placement
preparations
Thank You !