1. 5 GST Stocks-July-2016

2. VRL Logistics(VRL)
-Stro g retur ratio’s & robust busi ess odel

3. VRL Logistics Ltd - Investment Snapshot
(as on Jul 13, 2016)
Recommendation :- BUY
Maximum Portfolio Allocation :- 3%
Investment Phases & Buying Strategy
1st Phase (Now) of Accumulation :- 50%
Current Accumulation Range :- 310-320Rs
VRL is our special stock, which is a Good Investment under
current Market conditions. It has a presence in a space which
offers enormous potential and is also trading at reasonable
valuations which will deliver superior returns in the long run.
Core Investment Thesis :
VRL is a leading player in surface logistics and parcel services in
India with a fleet of about 4,074 vehicles including 3,701 goods
carriers and 373 passenger buses. Goods transportation (GT) is
its primary business and contributes ~79% to revenues while
revenue from passenger buses is ~18% while the rest is
contributed by others.
Current Market Price – Rs.314.00
Current Dividend Yield – 1.28%
Bloomberg Code –VRLL. IN
BSE / NSE Code -539118/VRLLOG
Market Cap (In Rs. Cr) - 2862
Equity Share Capital [Cr]– 85.54
Face Value – Rs.10
52 Week High / Low – Rs.479.00/
Rs.251.80
Pro oter’s Holdi g – 69.57%
Other Holdings - 30.43%

4. Company Snapshot
•VRL is a leading player in surface logistics and parcel services in India with a fleet of about 4,074 vehicles
including 3,701 goods carriers and 373 passenger buses.
•Goods transportation (GT) is its primary business and contributes ~79% to revenues while revenue from
passenger buses is ~18% while the rest is contributed by others.
• GT segment serves various industries and sectors (FMCG, textiles, furniture, pharmaceuticals, rubber,
plastics, metals, and automotive parts.
•V‘Ls large and diverse base of customers has enabled VRL to ensure that the company is not dependent on
any particular set of customers for revenues with no single customer contributing more than 1% of its
revenue from goods transport.

5. Goods Transportation Segment
•V‘Ls goods transportation division of the company is fast growing and covering new geographies within
the country. The division operates on a pan India basis and going by the number of branches, hubs and
franchisees, the company has significant coverage in the key markets of southern and western regions; and
some parts of north and east.
• VRL is currently covering 28 states, 4 union territories and more than 662 cities with the help of more than
1000 branches and franchisees; and 48 strategically located transhipment hubs.
•V‘Ls hubs are strategically located at key cities across India covering places like Mumbai, Pune, Bengaluru
and Delhi and the company is in a lookout for more locations to setup hubs and strengthen its network.

6. Segment Breakup-Goods Transport

7. Passenger Bus segment
VRL’s key Bus Routes
•VRL operates bus services in Karnataka, Maharashtra, Goa, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat,
and Rajasthan through its fleet of 123 Volvo multiaxle seater buses and 252 AC/non-AC buses.
• V‘Ls ai passe ger us routes pri aril o e t ities i Kar ataka. I i ter-state routes, the o pa s
services ply to Maharashtra, Gujarat, Goa, Telangana, Seemandhra, Tamil Nadu, and Rajasthan.
•VRL provides booking services through ecommerce portals such as www.vrlbus.in,www.makemytrip.com,
and www.redbus.co.into cater to more clients.

8. In-House Capabilities

9. Pan India Network
•V‘Ls Hub-and-Spoke model to aggregate small parcels and maximize capacity utilization of its vehicles.
• VRL has one of the largest widespread pan-India transportation network in 28 states and 4 union
territories.
•V‘Ls Operational infrastructure compromises of 733 branches & 291 agencies in 1024 locations. V‘Ls
Critical infrastructure facilities comprising of branches agencies godowns and transhipment hubs enables us
to cater diversified customer base spread across different geographical locations.

10. Standalone P&L

11. Standalone Balance Sheet

12. Snowman Logistics Ltd(SLL)
-End User Industry growth promises opportunity

13. Snowman Logistics Ltd– Investment Snapshot
(as on Jul 13, 2016)
Recommendation :- BUY
Maximum Portfolio Allocation :- 2%
Investment Phases & Buying Strategy
1st Phase (Now) of Accumulation :- 50%
Current Accumulation Range :- 80-85 Rs
Snowman Logistics is our special Stock which is a Good
Investment under current Market conditions. It has a presence
in a space which offers enormous potential and is a market
leader in the sector which will deliver multibagger returns in
the long run.
Core Investment Thesis :
The company is in the cold storage space and has a strong brand
which has been its strength. The company has good presence
Pan India. The company is also likely to benefit from fast growing
user industries which is likely to benefit the company. The
company has been consistently adding capacities which will drive
growth.
Current Market Price – Rs.82.00
Current Dividend Yield – 0.61%
Bloomberg / Reuters Code –SNLL. IN/
SNOW.NS
BSE / NSE Code – 538635/ SNOWMAN
Market Cap (In Rs. Cr) - 1368
Total Equity Shares [Mn]– 166.68
Face Value – Rs. 10
52 Week High / Low – Rs.46.00/
Rs.116.45
Pro oter’s Holdi g – 40.26%
FII - 2.73%
Mutual Funds - 5.30%
Other Holdings - 51.71%

14. Company Snapshot
•SLL was incorporated in 1998 as a trader of frozen marine products and has expanded its operations to
become the largest integrated temperature controlled logistics service provider.
• SLLs business is classified into warehousing, distribution and value added services with a Pan India
presence with 28 ware houses spread across 15 locations.
•SLL has installed capacity of 87,000 pallets for Temperature Controlled Warehousing and 3000 pallets for
ambient warehousing.
• For the distribution services, the company has 501 reefer vehicles connecting over 500 cities and towns .

15. Business Strategy
Dedicated Chamber:
The entire chamber capacity is sold on a dedicated basis while charging the rent irrespective of client using
capacity or not. This is usually for very large clients.
Guaranteed Space:
A certain number of pallets are guaranteed to the customer, which can be used whenever required. In a case
where customer fails to utilize its allotted capacity fully, Snowman can use this capacity for its pay-and-park
customers.
Pay & Park:
Under this model, customers pay for the capacity and store their products. This is for short term and small
clients.

16. Pan India Presence

17. Presence in entire value chain
•SLL is a leading integrated cold chain player in India with presence across the value chain of the industry
and offers high quality cold chain storage, distribution and value-added services.
• SLL has high-end equipment and handling mechanism, and uninterrupted power and fuel supply which has
enabled the company to enhance its market share.
•SLL charges its clients a premium based on high quality offering, pan India operations and presence across
the value chain.

18. Diversified revenue stream
•SLL offers cold chain logistic solutions for diverse industries such as seafood, poultry products, fruits and
vegetables, dairy products, ice-cream, retail, pharmaceuticals and some other niche segments.
• Serving diverse end products helps the company in countering demand volatility as most of the end
products that require cold storage have seasonal demand.
•SLL derives maximum revenues from the Poultry and Meat segment which contributes about 18% of its
revenues. Further, the top 5 segments contribute about 68% of revenues and cold storage facility is
mandatory which will keep demand growing at a steady pace.

19. Well diversified clientele
•SLL clients are from diverse industries such as FMCG, QSRs, poultry, seafood, dairy, food processing,
Confectionaries and pharmaceutical.
• SLLs key clients are Hindustan Unilever Ltd (HUL), Al-Karim Exports Private Ltd, McCain Foods India Pvt. Ltd
(McCain), Novozyme South Asia Pvt. Ltd (Novozyme), Ferrero India Pvt. Ltd (Ferrero), Graviss Foods Private
Ltd etc.
•SLL derives relatively low client concentration as its top 25 clients contribute ~40% to the o pa s total
revenues. Apart from this SLLs strong and diversified customer base helps the company in running at high
utilization throughout the year.

20. Standalone P&L

21. Standalone Balance Sheet

22. Lloyd Electric & Engineering Ltd
-Play on the consumer durable space

23. Lloyd Electric & Engineering Ltd– Investment Snapshot
(as on Jul 13, 2016)
Recommendation :- BUY
Maximum Portfolio Allocation :- 5%
Investment Phases & Buying Strategy
1st Phase (Now) of Accumulation :- 50%
Current Accumulation Range :- 240-250 Rs
Lloyd Electric is our special stock, which is a value stock and is a
Good Investment under current Market conditions. It has a
presence in a space which offers enormous potential and is also
trading at reasonable valuations which will deliver superior
returns in the long run.
Core Investment Thesis :
The company is predominantly in the air conditioner and LCD TV
and has established its reputation which has been its strength.
The company is also the major contract manufacturer of A s for
MNC s which sheds light on their technical prowess. The
company is also likely to benefit from capacity expansion in the
AC space which will drive its growth.
Current Market Price – Rs.242.00
Current Dividend Yield – 0.54%
Bloomberg / Reuters Code –LEE. IN/
LEEG.NS
BSE / NSE Code – 517518/LLOYDELENG
Market Cap (In Rs. Cr) - 874
Total Equity Shares [Mn]– 35.20
Face Value – Rs. 10/-
52 Week High / Low – Rs.328.90/
Rs.175.10
Pro oter’s Holdi g – 49.98%
FII - 9.15%
Mutual Funds - 0.00%
Other Holdings - 40.87%

24. Company Background
• Lloyd Electric & Engineering is one of the largest manufacturer of heat exchangers in India for the Heating
Ventilation Air conditioning and Refrigeration (HVAC&R) industry.
•Lloyd Electric & Engineering derives about 47% of its revenues from the consumer durables segment while
OEM packaged Air Conditioner and Heat Exchanger & components accounts for 23% and 30% respectively.
•Lloyd Electric & Engineering has a wide range of products comprising Window, Split & Package AC Systems,
Automobile Air Conditioning, Railway Air Conditioning, Telecom Precision Air Conditioning, Industrial Coils,
etc, with a market share of around 40%.
•Lloyd Electric & Engieering is an original equipment manufacturer (OEM) to major AC giants in India (viz;
Voltas, Samsung, LG, Whirlpool, Godrej and Onida) and exporters to leading brands in the rapidly growing
markets of Africa, Middle East, Europe and North America .

25. Railway Air Conditioning – Huge Opportunity
•Lloyd Electric & Engineering suppliers customized packaged AC solutions to Indian Railways including Metro
Rail which have been growing at the rate of 30% + during the last 5 years.
•Lloyd Electric & Engineering is having pan India Service network and presence at New Delhi, Mumbai,
Chennai, Bengalooru, Hyderabad, Lucknow, Jaipur, Guwahati and Kolkata for maintaining the AC package
unit installed on the rolling stocks.
•Lloyd Electric & Engineering has gained the reputation of being a Qualified Category I supplier for Indian
Railways, which have given the company the upper hand in bagging railway orders.
• With the ‘ail a Mi istr s thrust to ards oosti g the produ tio of AC oa h a d has o itted ~‘s.3
trillion for setting up or expanding metro and monorail systems in 20 cities, which would give Lloyd Electric
& Industries a huge opportunity to tap these new coaches.

26. •Lloyd Electric & Engineering at its Kala‐amb factory manufactures Window and Split Air Conditioners and is
an OEM supplier to various ulti‐ atio al companies in India.
•Lloyd Electric & Engineering has a state of the art assembly line for assembly and testing for window and
split Air Conditioners and also has backward integration facility for manufacturing heat exchanger coils,
tubing, capillary etc.
•Lloyd Electric & Engineering is an OEM supplier and it has successfully diversified into contract
manufacturing of ACs for clients such as Samsung, LG Electronics, Carrier, Haier, Voltas and Blue Star. Lloyd is
further expanding into the transport AC segment and has developed new models for the same.
•Lloyd Electric & Engineering is also I dia s leading manufacturer of fin and tube type heat exchangers for
AC s and refrigeration systems which gives the company backward integration and makes it an e d‐to‐e d
solutions provider within the AC industry.
OEM Supplier to MNC s

27. •Lloyd Electric & Engineering in H1FY16, the distribution network of Lloyd has increased to 7540 dealers; 8%
increase as compared to ~7000 dealers in FY15.
•Lloyd Electric & E gi eeri g s increase in distribution network will enable Lloyd to magnify its visibility in
under-penetrated consumer durable market. Lloyd as a brand has very less presence in Tier 1 cities which
consist of six metros and other 13 big cities
•Lloyd Electric & Engineering total revenue from tier 1 cities contribute only 22% of the total consumer
durables revenue and 78% of the total consumer durables revenue comes from Tier 2&3 cities.
•Lloyd Electric & Engineering brand awareness in Tier 2&3 cities is more than the Tier 1 cities. Lloyd is
planning to increase its brand awareness in tier 1 cities by spending around Rs.600 Mn in advertisement in
FY17E.
Growing Distribution Network

28. P&L

29. Balance Sheet

30. Exide Industries(EIL)
-Awakening to Competition

31. Exide Industries Ltd– Investment Snapshot
(as on Jul 13, 2016)
Recommendation :- BUY
Maximum Portfolio Allocation :- 5%
Investment Phases & Buying Strategy
1st Phase (Now) of Accumulation :- 50%
Current Accumulation Range :- 180-190 Rs
Exide Industries is our special stock, which is a Good Investment
under current Market conditions. It has a presence in a space
which offers enormous potential and is also trading at
reasonable valuations which will deliver superior returns in the
long run.
Core Investment Thesis :
The company is largest lead acid storage battery manufacturer
and seller for automotive, industrial, and submarine applications
in India and abroad .The company is also likely to benefit from
sustainable leadership and strong pricing power which will drive
its growth.
Current Market Price – Rs.183
Current Dividend Yield – 1.32%
Bloomberg / Reuters Code –EXID. IN/
EXID.NS
BSE / NSE Code – 500086/EXIDEIND
Market Cap (In Rs. Cr) - 15491
Equity Share Capital [Cr]– 85
Face Value – Rs. 1
Pro oter’s Holdi g – 45.99%
FII - 15.59%
DII - 17.26%
Other Holdings - 21.16%

32. Company Snapshot
•EIL is a largest lead acid storage battery manufacturer and seller for automotive, industrial, and submarine
applications in India and abroad.
• EIL sells automotive batteries in the domestic market under the brand name EXIDE, SF, SONIC, Standard
Furukawa, DYNEX, and INDEX and submarine batteries for defense applications.
•EIL sells its automotive batteries through a distribution network of dealer outlets primarily to car and two-
wheeler manufacturers.
•EIL is a leading supplier of batteries for motorcycles, passenger vehicles, commercial trucks and farm
equipment apart from providing industrial batteries, including lead acid storage batteries, valve regulated
lead acid batteries, and nickel-cadmium batteries.

33. Product Range

34. Presence across categories
•Within the carbon zinc batteries, EIIL offers popular batteries which are priced at INR8 per pc against
premium batteries priced at INR12.5 per pc.
• The Red coloured batteries from EIIL are premium category while Blue colored batteries are popular
category batteries.
•EIL also offers Yellow colored batteries which is placed in between Red and Blue and is used for scaling up to
Red which are premium batteries.

35. Technical Collaboration
•EIL continues to focus on technological up-gradation for efficiency improvements and cost reduction, which
will help the company to achieve their target of ~16% EBITDA margin in next couple of years.
• EIL is looking to improve its market position by launching new models at the lower end and taking share
from unorganized and organized entities.
•EIL also has agreements with Changing Noble Power Sourcing Company Limited, China for manufacture of
Deep Cycling E-bike batteries for electric bicycles and scooters.

36. Preferred Supplier
•The auto seg e t o tri utes % of EILs total re e ue, of hi h 30% is fro OEMs a d the rest fro the
high-margin replacement market. Being a preferred supplier to OEMs and a major player in the replacement
arket, EIL is e pe ted to apture I dia s stro g auto sales gro th.
• EIL being a preferred vendor for MSIL, the company has developed ISS battery for MSIL YC5 Project, New
generation ISS batteries for MSIL YP8-MC-YRA models, Dual Lid for MSIL.
•EILs good relatio ship ith its OEM pro ides further opportu it for repla e e t de a d for its atteries
as usually customers rely on one brand and use the same brand to replace their old batteries.

37. Replacement Market - Growth Driver
•EIL has 70% share in the Indian auto battery replacement segment (organized). EILs extensive reach and
strong after-sales service network help the company to maintain its leadership position in the replacement
market despite strong competition from the un-organized sector.
• The average life of a battery is 3-4 years for passenger vehicles and 1-2 years for commercial vehicles and
the company enjoys healthier margins in the replacement markets compared to the OEMs due to better
pricing power.
•With stricter pollution control and regulatory norms, especially with regard to recycling of toxic waste such
as lead, it may be difficult for small scale un-organized businesses to sustain their operations in the long run
which will benefit EIL and assure higher revenues from the replacement segment.

38. Extensive Distribution Network
•EIL has a pan India market presence through its extensive dealer network. Internationally it serves markets
in several countries in Asia, Africa, Europe, and North America.
•EIL has established a strong sales and distribution network comprising over 13,304 automotive, 9,500
industrial, and SF Sonic 2025 A authorized dealers spread across more than 202 cities in India to sell to retail
customers, for OEMs and aftermarket sales.
•EIL also has extensive sales and marketing staff of approximately 635 for automotive, 325 for industrial and
127 for SF Sonic who distributes its industrial products to OEMs and institutional clients.
•EIL has network of 206 Depot-cum-Service Stations spread across the Country. And aims to provide World
Class After Sales Service & Delivery System to its customers & Channel partners.

39. P&L

40. Balance Sheet

41. Inox Leisure Ltd(ILL)
-Capture the Multiplex Culture

42. Inox Leisure Ltd - Investment Snapshot
(as on Jul 13, 2016)
Recommendation :- BUY
Maximum Portfolio Allocation :- 3%
Investment Phases & Buying Strategy
1st Phase (Now) of Accumulation :- 50%
Current Accumulation Range :- 235-245Rs
ILL is our special stock, which is a Good Investment under
current Market conditions. It has a presence in a space which
offers enormous potential and is also trading at reasonable
valuations which will deliver superior returns in the long run.
Core Investment Thesis :
ILL is I dia s second largest multiplex operator with 107576 seats
and 413 screens across 57 cities accounting for about 23% of the
multiplex screens in India, is scripting a blockbuster growth story
through a mix of organic and inorganic growth.
Current Market Price – Rs.242.00
Current Dividend Yield – NA
Bloomberg Code –INOL. IN
BSE / NSE Code -532706/INOXLEISUR
Market Cap (In Rs. Cr) - 2326
Equity Share Capital [Cr]– 96.16
Face Value – Rs.10
52 Week High / Low – Rs.275.90/
Rs.170.75
Pro oter’s Holdi g – 48.70%
Other Holdings - 51.30%

43. Company Snapshot
•ILL with a 23% multiplex screen share is a formidable No. 2 player in the domestic arena and well poised to
ride on the increasing discretionary spends led by the consumption boom.
• ILL is planning to add 55-60 screens per annum for the next couple of years and has target of 557 screens
by 2018.
• In addition to its aggressive push in the northern region where it aims to challenge the dominance of PVR
Cinemas, ILL is leveraging on its strong brand and balance sheet to increase its presence in tier-II and tier-III
to s here the ultiple phe o e o is graduall at hi g the i dshare, i li e ith I dia s i lusi e
growth story.
•ILLs Satyam acquisition has been a strategic move for the company cementing its position in the northern
belt of the country and also helping it bridge the gap with the No. 1 player.

44. Increasing Multiplex Chain

45. Growing Box Office Collection
•ILL is likely to have strong screen addition over the next 24-30 months, with the screen count reaching 577
screens by 2018.
• ILLs Footfalls are expected to increase at a 21% compounded annual growth rate (CAGR) over FY2015-18 to
reach 7.2 crore footfalls by FY2018.
• ILLs gross box office collections are expected to grow by 25% in the medium term driven by increasing in
ticket prices due to high margin content.

46. Screen Additions - Growth Catalyst
•ILL has 372 screens in its kitty and is second largest player in Indian multiplex industry with market share of
23%. The company is planning to add 55-60 screens per annum for the next couple of years and has target of
577 screens by 2018.
• ILLs capex required for screen is Rs.20 mn and capex of Rs.1200 mn would be required per annum for the
addition of screens. Out of the 60 properties expected to come into stream in 2016, 40% is expected to be in
metros and 46% of screens are likely to be present in North & Western regions which will support the
growth of Average Ticket Prices.
•ILL expects its ATP to grow at CAGR of 4% for FY15-FY17E from Rs. 164 to Rs.176 on the back of net screen
additions in lucrative markets and locations. Net revenue per screen stood at Rs. 14.8 Mn at FY15 and is
expected to improve to Rs.16.1 Mn in FY17E, though it s still lower compared to PVR (Rs 17.6 Mn) which
provides scope of improvement for ILL.

47. Food & Beverage Revenue
•ILL expects the food and beverage (F&B) business to grow at a 30.4% CAGR over FY2015-18, led by the
o pa s increasing thrust on stepping up growth in the segment.
• The management has taken initiatives like changing the menu based on a movie, keeping in mind the taste
buds of guests; serving a larger menu spread; and providing on-seat delivery.
• ILL also provides a choice of international, Indian and city-centric special cuisines. In order to drive growth
in the F&B business and to speed up the transaction time to serve more guests, ILL has invested in
technology in concession counters (REFUEL). Guests standing in long queues can place their orders with
INOX representatives who carry the menu on their tablets. As a result of these initiatives the spending per
head (SPH) has increased to Rs55 in FY2015 from Rs41 in FY2011.

48. Advertising Revenue Trend
•ILL is taking several steps to improve its advertising revenues including focusing on high-value and long-term
deals, innovative transaction structures, expansion of the breadth and depth of marketing teams, and
optimisation of the advertisement rates.
• An increased screen presence gives multiplexes higher bargaining power with advertisers and drives higher
advertisement and other operating revenues per screen.
• With the screen count reaching close to 530 screens by FY2018, ILL is expected to further accelerate its
advertising growth with ILLs advertising revenue per screen likely to increase to Rs2.9 million by FY2018
from Rs2.3 million in FY2015.

49. New Screen Pipeline

50. Consolidated P&L(Rs.Mn)

51. Consolidated Balance Sheet(Rs.Mn)

52. Disclaimer for investors
This report is for private circulation and for the personal information of the authorized recipient only, and we
are not soliciting any action based upon it. This report is not to be construed as an offer to sell or the
solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be
illegal. It does not provide individually tailor-made investment advice and has been prepared without regard
to any specific investment objectives, financial situation, or any particular needs of any of the persons who
receive it. The research analyst who is primarily responsible for this report certifies that: (1) all of the views
expressed in this report accurately reflect his or her personal opinions about any and all of the subject
securities or issuers; and (2) no part of any of the research a al st s compensation was, is, or will be directly
or indirectly related to the specific recommendations or views expressed in this report. This report has been
prepared on the basis of information that is already available in publicly accessible media or developed
through analysis of Sublime Financial services pvt Limited makes every effort to use reliable, comprehensive
information, but we make no representation that it is accurate or complete. The views expressed are those
of the analyst and the Company may or may not subscribe to all the views expressed therein. Sublime
Financial services pvt Limited reserves the right to make modifications and alterations to this statements as
may be required from time to time without any prior approval. Sublime Financial services pvt Limited, its
affiliates, directors and employees may from time to time, effect or have effect an own account transaction
in or deal as agent in or for the securities mentioned in this report. The recipient should take this into
account before interpreting the report. All investors may not find the securities discussed in this report to be
suitable. Sublime Financial services pvt Limited recommends that investors independently evaluate particular
investments and strategies. Investors should seek the advice of a financial advisor with regard to the
appropriateness of investing in any securities / investment strategies recommended in this report. The
appropriateness of a particular investment or strategy will depend on an i estor s individual preference.
Past performance is not necessary a guide to future performance. Estimates of future prospects are based on
assumptions that may not be realized. The news items appearing in this are collected from various media
sources and we make no representations that it is complete or accurate

53. THANK YOU