ambit accounting thematic

7/31/2019 Ambit Accounting Thematic

1/18

Accounting quolity drives fl-investment retu rns H';,.j:Jr33.t'"Xt",3ffo2.b,.opiror.o-Along wilh everything else, occounting quoliry in lndiq s-eems to hqve our three sets of occounting checks*stogiotedolqlowtevel.Ouronolysisofthelqslfoury:":":Iconiolidoted occounts of the BsE500 (excl - Finonciolsl f"I]:,_-t" *o.nr. moniputorion checkscontinuing divergence in qccounling quolity within the stock mqrkel. :The silver lining is rhqr rhe relotiorr"t ip between gooa o;;Jritiig "iJ cosh pilferose checkspositive investment performorra" "e"-" to be tightening over lime. Source; Compo nv. *For eoch cotegorv ofAs one woutd expect, occounting quoliryvories by seclor (see toble on the risht) z::1ii"iz:i;:i:xfl:?i:;";il,':'with the usuol suspects like Reolty, Conglomerotes qnd Conslruciion bringingup the reor. More imporlontly, the chonge in o seclor's occounling ,.or., iu.-. Sectorbysectorqcc.ountilg.scores.iime seem lo hove o beoring on inveslmenl returns (see exhibit 6 on. poge .5). Sector ''!Llrtt,ff3illi;",lronicolly, this puls Reolfy componies in o nice position os, inspile of being theboltom of ihe closs on o blended bosis over FYOS-l'l , Reolty is one of the mosl Logistics 2otimproved seclors when it comes lo chonge in occounting score ocross FYOS-I 1. C&nenf' .:" ,'ii ',t' it6 .'liMedio componies ore olso in o similor posilion. Ferlilizers 19,,2 .,:.Similorly, occounling scores vory qcross morkel cop buckets (see toble below right T6lecom' :r .'' r:" 19o& Section 3). Whilst the "top 5Oi'stocks hove the best blended scores ocross FY08- Shipping 'l 85I I , the improvemenl in qccounling scores over FY08-1 I hos been the greolest in Ayt9.A!t ,. ]11the midcop bucket (bucket 3: the 100 stocks with mkt cop between $0.2-0.6bn). ChCinicoli'r I8O'Most importonlly, from on inveslors' perspeclive occounling scores hqve q cleqr .lnfroslruclure ".:impoct on srock level returns. Whilst rhis is not oppor"nl when you look oi the Utilifiis ' ' .. " '' 173BS|5OO os o whole, when you drill down to the seclor level the reloiionship is lnduslriols 174cfeor (see Exhibits below ond Seclion 5). ln foct, if you drill down furlher inlo o FMtG ': ,' ' ' . 173 :specific morket cop segmenl in o seclor (see Exhibit on lhe right), the link between Oil & Gos 172good occounting ond fositive investmenl performonce becomes even cleorer. Medis :: '171Exhibif l: lT compqnies - lmpoct of Exhibif.2: Lorge cop lT componies - Textiles 17Oii.orrrtirrg or, "f,rr" prii." lmpocl of qccoJnting on shqre Prices ;1 ' t 69

ffiAMBIT4i-urtr*l *t r.;:lk

4e/. iy=o.12'r5x+o.oo32 25o/o v=1.o662x+0.1322 1 Copitol Goods 1673w" ^ -l A R'?1o.ooa3 )ao/^ R'?=oeol -] ,.: phormq 166a I ' (}----- - 2Ov. 1 a rnqllrrqA 1:: .-a a . i ,,r" ,/r., Metols l6sB roor olt - - .{ ai:i Meri r, -l.r'.3 e .:^ *'5ffio,',J'"'n Aulo 163E* _,or. q.? ! *',o'," .aEH .;# -.5. Eg '"^ ^ ,/ I on'o 163i - ^^^. I E o,o,t".. ConsumeiDuroble ]58i1Z:']^t*"WRero, r53.-g-so./"I'f-u*l'n -4oo/" -2tr/, e/" 2e 4tr/" -lso/o te/. -s% e svo rory" Mining 152Avg chonge in occour$ing score (Fyo8-t t) Avg chonge in occounting score {FY08-l l) Miscellongous 152

s"-.;r Arnbit copitol reseorch source: Ambif copifol reseor, Conglomerole I 4lWhilsr our onolysis uses on on orroy of occounting rolios to detecl finonciol R.oli .136monipulolion by listed componies, the mosl powerful rolios ore: Averoqe 169rcFo/EBlTDAorlhe,,coshconversionrolio,,flucluoieswidelyocrosStimeondocrosscomponies. ltoppeorsiholwheneverpromolerswonl-t1 -t:rr"-1 profits Avg.occountingscoreby-cg!lrgtg](onddooQlP),workingcopitoldeleriorotesqndcoshconversionsuffers'r ,,olher Loons &'Advonces os q % of Networlh" seems to be the most BSE5o0 Buckel Avg' occounling scorewidely fovoured roule when il comes to pulling cosh oul of.the compony (lo Top50cos 175fund whotever else hos cought lhe promoters' foncy ouiside the lisied entity). N61ct 'lOO 174

. "Provisioning for doubifu! debtors os o o/o of gross deblors" olso Next'100 162flucluotes significontly ocross time ond widely ocross seclors ond componies., A Next 95 cos 161lowscoreonthismelriccombinedwithpoorcoshconversionisorguoblythedefining signoture of o dodgy sel of occounls. Y---'' "'- source: Ambif copifol reseorch

a^- t..*Lar ih^^ddh+ di


2/18

*nlrterCONTENTS

MgthOdO1ogy..................o.....................o..o..."'o"""""""""""""'3ACCOunting SCOfeS by SeCiOf .....o....................o...o......o....""""""5Accounling score by morket cop bucket"""'o""""""""""""""8Chonges in Accounting Quoliiy over Time o"""""""""""""""'9Accounli ng Quoliry qnd lnveslment PerformqflGG .................. I 0Diving deeper inlo lhe'Botlom 50' Compqnies""""""" """"12SOWhqi ShOUld lnVgSlOfS DO? ..................o.......o""""""""""'14AppendiX 1.........o.........................................."'o"""""""""""'I5Appendiy.2..........................................................""o""""""""17

Ambit Copiiol hrt Ltd


3/18

*nmnrr*nrrr ;i xark1: MethodologyUsing consolidoted finonciols for FY08, FYO9, FYl0 ond FYI 'l we hove colculoted,.u"i finonciol rotios for the BSESOO componies (excluding Finonciol Servicescomponies).Our doloset comprises 335 componies since we ore excluding:. 7S Finonciol Services componies (on the grounds thot the forensic occountingrotios used below do not do iustice to these componies) ond. 90 componies on the grounds thot they hove noi been listed for the durolionof the iorr-y.o, period thot our study focuses on or hove gone throughcorporole octions like chonge in yeor end, de-merger elc'Appendix 'l gives o full list of the excluded componies under lhese ihree heodings.lpp"ndi* Z'gives the nomes of the componies included in ihe study olong withlheir secloro I clossificotion.The occounting rolios thol we ore focusing on include:r CFO/EBITDA: This rotio is o check on o compony's obility lo converl EBIIDA(which con be relotively eosily monipuloted) into operoting cosh flow (which ismore difficult to monipulote). lf this rotio is delerioroting over time then iiroises concerns obout the compony's revenue recognition policy (os oggressiveEBITDA growth olongside poor growth in cFo moy imply revenuemonipuloi-ion vio-methods like chonnel stuffing). Whilsr on the foce of it thecompulolion of the rotio might seem simple, in reol terms il is not os thecomputotion of the rotio hos gone lhrough four loyers of filtering. To give onexomple, if both CFO ond EBITDA ore negolive the resultont rotio is positive.However our filter ensures thot the rotio turns negotive ond in the process thecompony gets Penolized.. Miscellqneous expenditure os q percentoge of revenues: This rotio is o

check on the compony's expendilure policy. lf this rotio is increosingconsisiently then it roises concerns over the outhenticity of such expense (osconsistent increose in miscelloneous expenses os o percentoge of revenuescould imply cosh pilferoge by the promoter). Given thot miscelloneousexpenses'oiso includes notionol items reloted to forex, we eliminoie themwhilst computing the figure of miscelloneous expenses'. Olher loqns ond qdvqnces qs o percenloge of nel worlh: This roiio is ocheck on lhe compony's cosh monqgemenl policy' lf this rotio is increosingconsislently then it roises concerns over the verocity of loqns given (os oconsistent increose in loons could imply diversion of cosh to seeminglyunreloted comPonies).. provision for doubtful debts qs o percenloge of gross debtors: This rotiois q check on the compony's provisioning policy. lf this rotio is consistentlyfolling then it roises the speclre of eornings being boosted through oggressiveprovisioning proctices.. Contingeni liobilities os o percenloge of nel worlh: This is o check on the.o*pon-y,, off-bolonce sheet liobilities. lf this rotio is increosing consistentlythen it roises concerns regording the slrength of the compony's bolonce sheetin the event the conting.nt liobitities moieriolize. Given thot coniingent liobilityolso includes genuine items like letler of credil, guorentees, bill discountingond cloims nof ocknowledged os debt, we eliminote them whilst computing lhefigure of contingent liobilitY.These rolios con be broodly divided inlo three groups -

revenue monipulotionchecks, expense monipulolion checks ond cosh pilferoge checks - see exhibit 3'

Ambit Copitol Pvt Ltd


4/18

*AI$FJIExhibir 3: Defining the three brood colegories of qccounling checks (lhis is nol onexhqustive lisi of the roiios RoliosCqlegol,Revenue recognilion checks&qryifryryse:':Cosh pilferoge checksSource; Ambil CoPilol reseorchThen for eqch of the four yeors between FY08-1 1 we colculote on occounting scorefor eoch compony bosed'on ihe obove rotios. The best comPony gets-o-score,of335 (os ihere ore di;";ilni"t in rhe list) ond the. worsl. o score of I i'e' thescore drops by 'l point for every compony o, *" go down lhe occounting quolityspeclrum.Occosionqlly, in exceplionol circumsionces, we olso ossign o '0' score if thecompony reports on in"rpli.obly bod rotio. For exomple, if the compony reporisnegotive CFb ond negotive EBITDA, we ossign o '0' score'Note thoi whilst colculoting scores we oscribe equol weightings to eoch of therotios since we do n"i*onir" moke the method ony more iudgmentol thon whotit olreody is.Once lhe scores for eoch yeor between FY08-11 ore colculoled, we tqke lheoveroge occounting ;;;;. 'oi."r, the four yeors io colculote the blendedoccounting score ocross FY08-1 1'All our finonciol doto ore sourced from Copitoline ond our shore price doto, fromBloomberg

CFO/EBITDA

ond os o % of net worlh

Co iiol M Ltd


5/18

#amnr2: Accounting Scores by Seclor

Exhibir 4: Accounling score ocross seclors sorled by blended occounting score (the higher lhe score, the better thesector; so Logistics is the best sector here)No of Blended Avg onnuol o/o chonge Shore price Oulperformoncecomponies in Accounling Score in occounling score performonce relqlive lo Sensexlhe seclor (Fy08-rl) (FY08-11) (Fr08-ll) (OVER FY08-ll)

LogislicsCemenlFerlilizersTelecomShippingAulo AncChemicolslnfrostruc'lureUtilitieslndustriolsFMCGOil& GosMedioTextilesITCopitol GoodsPhormoMetolsAuloAgroConsumer DurobleRetoilMiningMiscelloneousConslruclionConglomeroleReoltyAveroqe

4886

201198192'190't85t8Ir80178175174173172't71170169107166r65'r63r63158153152152148141136159

_5%1o/oa%ao/L/O9o/o$Yo5%o%8o/o

28o/o7o/o1o/olo/o4o/o3o/o2o/o

1Ao/o5%2Yo4Yo6o/c1%4o/n

1O"/oSa/o

11o/o1ZYo32Yo

-12o/oEO/-J lO

17o/o19"/o14o/o14o/o14o/o44%o21o/o

8%614%

6Yo5o/o'l5o/o

3Oo/o21%3AYo87o/o29o/o37Vo2OYo

7"/o12o/o-8YolSYo

OYo2a/o

21o/o-22o/o-16Yo

7o/o9Yo5a/o3Yo3o/o

33%1lYoao/-a /o3o/o

-5o/o-60/o4o/o

19YolOYo19%77o/o17o/o26Yo

9o/o-3Yo2/o

-'l 50/o8Y"

4%o3%6Yo

61314IO121419l2

89

292326l8

773I4

30l3IO14

Source: Ambit Copitol reseorch

Exhibit 5: "Shqre prices vs Blended occounting scores(FY08-l I )" for qll the seclors in the morkei50Yo4OYo3OYo

20YolOYo

Oo/o-1Oo/o1

-2oo/oBlended Accounling Score (FY08-1 1)

Exhibit 6: "Shqre pri(es vs ftg4qg in occouniing scores(FY08- t I )" for qll the seclors in the msrket@oILoIoELL-o)CLoI'L-o.oL-ctt

@oll-0)E"coU(,Io-(,Lo-c,rt

5OYo40o/o3Oo/o

2OYo

y=0.6041x+0.1349R2 = 0.0258

.,&

.t {b i' {r it rir-SYo

y= -0.0005x +O.2412* R2 = 0.0038

Avg onnuol chg in occtng score (FYO8-1 1)

Ambit Cop;iol hrt Ltd

Source: Compo ny, Ambit Copilol reseorchSource: Compony, Ambit Copito/ reseorch


6/18

*A*,lF]IAs one would expecl, occounting scores different ocross sectors. Moreover, osshown in Exhibit 6, the chonqe in lhese scores ocross iime hos o beoring on lheinvestment performonce of the sector. However, the obsolute level of o seclor'sblended occounting score does nol seem to hove o beoring on the sector'sinveslment performonce (see exhibir 5)'. Bosed on lhe blended occounting score (ocross FY08-l'l) Construclion,Conglomerqles snd Reohy emerge os the worsi 3 seclors wilh overogescores of 148, 141 ond 136 respectively (whereos lhe overoge sectorol scorefor the BSE$OO is 169). lnterestingly, the shore price performonce of theConstruction ond Reolty sectors olso reflecls this (underperformonce of 3% ond15% respectivelY).. Logistics, Cemenl ond Fertilizers emerge os the sec'tors with the strongesloccounting quolity with scores of 201 , 198 ond 192 respectively which is

-15o/o obove the BSE500 overoge score.Exhibif 7: Out qnd under performonce for the best 3 qnd bottom 3 seclors (figures in the loble qre obsolulerqlios/volues qnd nol scores)

CFO/ Chg inEBITDA Depreciotionrotio (7o) (bPs)

Best 3 sectors by iiiitorrtutperformoncri780/, 125 101 o.401 101 70/ 1.009501 133 2i o.ool 8Yc 7Y, -o.179001 2'l 201 1 .40/< 5o/. 20/, 1 .13r,;t,. :.'{*i'li,*,,, 'il98r,":, 2%fl},li.lr l2%,,'.1,- a%}:,.,.:,. ,,.llt:l'zWorst 3 3eclors bt.566,96riderper{orm:tnce

ConstruciionConglomeroleReolty

49o,:,So*.., erb;t Copifol reseorch Nofe; Cells with shoding denole outperformonce for fhe besf seclors ond u nderper{ormonce for lhe bofiom sectors.

. Reolty compon:es cqn spring o shqre price surprise going forword giventheir iubstontiol shore price underperformonce (15o/o over FY08-'11) ond thesignificont improvement in the occounting score (10% improvement over FY08-I I ).. Medio compqnies could surprise on the positive side given lhe 28o/oimprovement in this sector's occounling score over the FY08-.l1 (the highestomidst peers) ond shore price underperformonce relotive to the Sensex.. On the other hond Consumer Durqbles ond FMCG mqy disqppoint giventhese sectors' huge shore price oulperformonce relolive to the Sensex (77%ond 33% respeclively) coupled with only modesl improvements in theiroccounting scores (57o ond 0% respectively).

Exhibit 8 looks ot the experience (from on occounting perspective) of the fivesectors whose scores hove improved the mosl over FY08-11 - Mediq, ReolfiAgro, tnfrostruclure qnd Utilities - ond five seciors whose scores hovedeterioroted lhe mosl (or stognoted) over FY08-1,| - Telecom, IT, FMCG, CopitqlGoods ond Construclion.

Misc Exps os% of Rev

Other L&A/ ContingentNetworth liobility os %(Yol of nelworth

PDD("/r)

Growth inAudit fees/growth inrevenues

LogisticsCemenl

r006

Ambit Copitol Pvt Ltd


7/18

*nlnerExhibit 8: How the five besl qnd worslperspeclive) hove evolved over the four veqrsSectons showing the biggesl improvement in occounling quolity

performing seclors (from occounting

ffiimprovement|28%peronnum)initsoccountingscoreMedio

uriliries

!T'.'

Copircil Goods

(FY09 ond FYl0)infroslruclure hos olia. shir'\ilnliinprovemenl [9% ger onnum] in its occounling scor:.o*, the post foirr yeiirs. This improvemenl hos been moinly driven by betler coshln1{slruetrre generolion, modSl changd'in {epreiotion roie, folling miscelloneous expenses,-'-"--,,. ., . ina lower growlh in oudit fee relolive lo revenues ocross two yecrs (FY09 ondFY]0)Utilities hos olso shown improvement (8% per onnum) in ils occounting score overthe post four yeors. This improvemenl hos been. moinly driven by belier coshgenerolion, modesl chonge in depreciotion rote.,.folling miscelloneous exPenses,iower growih in oudit fee relotive lo revenues, folling contingent liobility ond rising

over the posl four yeors. This improvement hos been moinly driven by belter coshgenerotion ond modest chonge in depreciotion roie ocross oll lhe {our yeors.[eohy hos olso shown improvemenl (I07o per onnum] in its occounling- score overthe posf four yerlrs. This improvement hos been moinly driven by better coshoenerotion, rising provision for doubtful debts, folling olher loons os % of neiworlh,ind modesr chonge in depreciotion rote ocross lwo yeors (FYl O ond FYI I )-Agro hos olso shown improvement (10% per onnum) in iis occouniing score overth-e post four yeors. This improvemenl hos been moinly driven by betler coshgeneroiion, modesl chonge in depreciotio,n role,. folling miscelloneous exPenses,iolling contingenl liobility, rising provision {or doubtful debts, folling olher loons os% of networth ond lower growth in oudit fee relolive lo revenues ocross two yeors

for the BSE500).lT,s occountinj scores hove slognoied over lhe posl four yeors exoclly in-line withlhe morket o,rlrog. level (the FYoS-] 1 blended overoge score for lT is 169 vs I 69for the BSE500)Copirql,,Oqoa"i occlintittg siores, hove sfogryle.d over the prsl foui y.eors^BELOWrh;ti;"tJ."*"ge'bvr'[th" FYoS-]1 blended overoge scoie for copitol Goods isiOZ ," f 69 for th-e BSE5Ob). This de,teriorotion is driven by rising olher loqns os o/o"ii"f*"*ft, rising conJlnglnt liobility a? '\ of nelw-orih, folling provisions os. o/o ofioritt t a.Ufr oni t igi;igr"rrih in oudit fees relotive lo revenues over o period oflhree yeors (FYO9, fYt0 ond FYI 1).iin"tiu"tion,s occounling scores hove stognoled over ihe post four yeors WELLBELOW the morkel overoge level (the FYoS-] I blended overoge score forconstruction is 148 vs 169 for rhe BSE500). As highlighted in exhibil 7 on iheprevious poge, this sector fores very poorly on CFO/EBITDA (cosh conversion rotio

provisions on doubtful debts ocross two yeors (FY l0 ond FY'l 1)Sectors showing lhe biggesf deleriorqlion (or smoltest improvement) in occounting quolity

TelecomTelecom is lhe onlv secior whose occountinq scores fell over FY08-l I . This dromoiicd"t."i.r.ti." '" d.'r"" by rising olher loons os % of networth, rising miscelloneousexpenses, rising conlingenr liobility oso/ool nelworlh ond folling provisions os % ofdoubtful debts ocross two yeors ((FY08 ond FY09).fMCG,s occounlin-g scores hove stog:roled over lhe posl four yeors olbeit ol onFlltCG obove oversge level {the FYOS-I 1 blended overole score for FMCG is 173 vs 'l 69

ConslruclionZ,f onty ZZ.ilor this sector vs 6l% for the BSE500 os o whole) ond on "other loonsond oivonces,, (omounting lo 67o of nelworlh vs 2olo for BSE500 os o whole)

Source: Compony, Ambit Copitol reseorch'When we qnolyze lhe correlolion between the blended occounting score ond shoreprice performonce ocross sectors, we find thoi in more thon 5Oo/o of ihe sectors iniLr" gieSOO, lhere is o direci correloiion between shore price performonce qndblended occounting score (i... higher the score, higher the shore priceperformonce for thot porticulor seclor). This issue (regording the link betweenoccounting quolity ond shore prices) is explored furlher on in this note.ln light of this correlqlion between occounling scores ond shqre price performonceocro;s sectors, exhibit 8 obove becomes podiculorly relevonl os:. Some of the hottest seclors in terms of investmeni returns over ihe pqsl iwoyeors - lT, FMCG, etc -hove nol seen ony improvemeni in their occountingquolity over ihe Post four Yeors.' Some of the hqmmered seclors in terms of investment relurns over the posltwo yeors - Medio, Reoliy, lnfrostruclure, Utililies, etc - hove shown o strongimprovement in occounting quolity over the posi four yeors'

Ambit Copiiol h/t Ltd


8/18

3: Accounting score bY mqrket GqPbucketEXntil :r! ^.."",t 7o shore pricegr.k"r N - .,, ,n '"..ro. ''="".*('iiia-t t') - - - - in score (rYoa-iu perlormqnce (FY08-t 1-)Exhibit 9:

Bucket 1Bucket 2-Buckel 3

score by mqrket coP bucket

100,l1 l:'t 'l'' :*,.lo r. ,.ll1

60/or. rtl :lrl 'a l ::r, 2196

15%8%

::tloo,.:,',1, l .:r r|,, 1; ,,,' ,;1,.'{ I irf+t l,"l ',t' tit' ,, ,175162Source: Ambif CoPifol reseorch

Bosed on the morket copitolizotion of componies on December 8th, 201 1' we hoveiVlJ"a rhe BSE500 into four morkel cop buckels:Bucket 1 comprises the 50 lorgest componies by morket copBucket 2 consisls of rhe next I00 lorgest componies by morket copBucket 3 consisls of the next I00 lorgest componies by morket copBucket 4 comprises the bottom holf of the BSE500'

The 335 componies in our study ore splii ocross these four buckets in the monnershown in the toble below.Exhibir l0: Defin morket buckets # ol componies in buckelMorkel cqP rongeBuckelBucket 1 tl 62bn - (2,550bn (US$3.2bn -US$SObn) 50100

10085335

tsUckgl I \. I ozurr -,\'rv,Bu&ai*, t r .t30h! {15et .?!q} .'


9/18

*nMar4z Chqnges in Accounting Quqlityover Time!n this section we try to understond monogemenl's behovior with regords tomeeling onolysls' expectotions. Our onolysis suggests o high degree of correlotionbetween onolysl expeclotions (which is driven by morket irends i.e. bull ond beqrmorket) ond occounting quolity.

Exhibit 1l : Chqnges in Accounting quolity over time for the BSE500Frr0 FTI I

Revenue iionipulolionCFO/EBITDA rotio (%)beense MonipulolionConlingenl liobility os o % of networthProviiiiia:,for doubtful ai6,ro8.!&, q'X of illprg&brorsCosh PilferogeMisc expenses os % of revenueOther Loons & Adronces os % ofShore price performonce

4OYo

9Yo3.8%

2.8%1.4o/o45Yo

860/o

1Oq1o3:9%

3.2o/o

58o/o

'lSYo'4:loh

2.5o/o,1 .8lo/o168Yo

Eull

58o/o

13Yoi.7,v,e

2.7%

5o/oB.o,

Source; ,Ambif Copito/ reseorchAveroge CFO/EBITDA rotio of our universe (335 componies) increosed to 86%in FY09 lrom 4lo/o in FY08. However, it shorply delerioroted lo 58o/o in FY10 (oyeor choroclerized by heovy QIP ond IPO oction). Cleorly onolyst expectoiionsin FYIO were significontly higher reloiive to FY09 given the bull morketconditions prevolent from Morch 2OO9 lo Augusl 2OO9. This shorp drop inCFO/EBITDA in FY10 suggests thot to meei lhe streel's expectolion, componiesmight hove resorted to vorious types of oggressive revenue recognition (eg.chonnel stuffing) which whilst ensuring EBITDA grovrlh, odversely impoctsworking copilol hence lowers fhe CFO/EBITDA rotio.Coniingent liobilities (os o % of networth) increosed by 5Oo/o in FYl0. Agoin thismight be o ploy to boosl profitobilily in q bull morket yeor. Given thot thotlhere is no requiremenl to show ony provisions in P&L on contingent liobilities,componies might hove preferred to clossify octuol liobilities os conlingentliobilities ond thereby shore up both their Bolonce Sheet ond P&1.Miscelloneous expenses os % of revenues declined lrom 3.2o/o in FY09 lo 2.5o/oin FYl0. Agoin this might be o ploy lo boosl up profitobility.r Olher loons qnd odvonces os % of networth increosed from I .4o/o in FY08 to1.7o/o in FY09 ond hos since stoyed ot this level. Given thol since FY09, withthe exception of the period from Morch-July 2OO9, roising fresh equity copitolhos been difficult, promoters might hove been motivoted to siphon out coshfrom the listed entities to their own privoie componies using olher loon &odvonces.

Ambit Copitol Arl Lld


10/18


11/18

#nmnr{rL,-en o! sgrl.ln fioct it you toke this o dep further ond you look ot o specific size bucket within oseclor, fhe rekrtirxrship becomes even more striking - see lhe Exhibits below forlorge op lT sfocks"Therefore, ltre more you isolote fsc'lors such os sector ond the size of o comPony,lhe more cleorly 1., .on see the role of occounling quolity in driving shore prices.

Exhibir 16: "Shqre prices vs !!g4g in occountingscores (FY08-1f )" for lT Edibir 17: "Shqre prices vs Chqnqe in occounlingscores (FY08-f I )" lT (Lorge coPs)4Oo/o3Oo/o

= 2oo/oI8 loYolL OYop g -ro,z"76 -ror, -3OYo8- -4oo/og -soo/oo' -4oo/o -2oo/o oo/o 2oo/o 4o"/,

Avg chonge in occounling score (FY08-'l I )-15o/o -1Oo/o -SYo Oo/o 5o/o lOo/oAvg chonge in occounling score (FY08-1 1)

Oo/o

-5o/o

=coo58ecu,9


12/18

*nmnrComponies5z Diving deeper inlo the 'Bottom 50'

Exhibif I8: Bottom 50 componies by sectorSeclors # in worst 50 7o of worst -^---I:'^:l-"i# Probobiliry of compony in thor sector being in(A) 50 t"-o"1i".rtJ, ,", rhe,,bomom so- 1i/eyMiscelloneousReoltyITMeiolsConslruclionConglomerole'PhormoFMCGCopitol GoodsAgro ' :lRetoilTelecomUiilitiesOil & GqsMedioAuloConsumer DurobleMiningLogislicsCementFertilizersShippingAulo AncChemicolslnfroslruclurelndusiriolsTexliles

16Yo14o/o :lOYotttg% l

8o/og%,.lr,:.:r:r.;1 rl60/ols/s4o/o

,'AYo4Yo

.2o/o2/o204ao/1/O2o/o2Yo2YoO%o0o/oOYoo%OYoo%"O%o0%:Oo/o

8'754443222.:2111I,lII000000000

301429't813't02619237

86

1212,'

87344I86l3

141014

9

27o/olOo/o17Yo:22yo31Yo{t%12o/o11Yo

9o/o29o/o25o/ot'17,o6

$YolYo

13Yo14%330/,25o/o

Oo/oOo/oOo/oOo/oOo/oOo/oOo/oOo/oOo/o

Source; Ambit Copitol reseorch.Exhibii l9: Botiom 50 by morkel cop bucket

Buckets # in worst 50(A) 7o of worsl 50 Number of componiesin lhqt size bucket (B) Probobiliry of compony inthol buckel being in rhebollom 50 (A/B)Buckel IBucket 2Bucket 3Bucket 4

58

191850

1Oo/o160/o380/,36'/o

lOOo/"

50r00r00

85335

1O/o8o/o

199/o21.%15o/o

Source: Ambit Copitol reseorch.

Amb;l Copitol Pvt Lid


13/18

*nllsFMiscelloneqrs fincludes componies ocross sectors like sugor, poper, Horels,Avioiion ond TrudirB) ond Reohy ore the biggest contributors to the boftom50 list of componies.Thot being soid, since sectors which hove o lorge number of componies in lheBSE500 ore more likely ro hove o greoter presence in the bottom 50, o betterwoy lo gouge the occounlirg quolity of o seclor is to look ot the 'probobility ofo compony in thnt sector being the BsE500'. This probobility is colculoted bydividing the number of entronts (from the sector) in the bottom 50 by thenumber of componies from thot sector in the BSE500. From this perspective,the two worst ploced sectors ore Reolty (507o probobility of o compony in thisseclor being ronked omongsl "lvorsl 50" componies in lndio) ondGonglomero le (4oo/o probobilify).ln the cose of Reolry componies the weok occounting score seems ro be onoccount of revenue monipulotion (CFO/EBITDA is low ond growth in ouditfee is higher thon growth in revenues) ond expense monipulotion(contingent liobilities is high ond provision for doubtfu! debts is low).conglomerole componies'weok occounting scores oppeor ro be on occountof revenue monipulotion (cFo/EBlrDA is low ond growth in oudit fee ishigher thon growth in revenues) ond expense monipulotion (chonge indepreciotion rote ond provision for doubtful debts is low).The weok occounting performonce of Reolty stocks (worst in the sector) is dueto weok scores on the CFo/EBITDA metric. This is likely to be becouse of thefollowing reosons:. 9oo/o of lndion componies in the Reolty sector follow the 'percentoge ofcompletion' method of recognizing revenues - o method which con bemonipuloted by overstoting the percentoge of complelion.o These componies olso offer long credit periods. lf we onolyze ihe individuolrolios of componies we find thot Reolty componies seem to hove poor cosh

generotion due to high debtor doys.

Ambit Copilol Ad Ltd


14/18

*nMer7:SoWhstShouldlnvestorsDo?I nvestmerrl imPlkuli oltswhilsrthekeyconcludirrgmessogefromouronolysisiscleor_occountingquolityhos o cleor impoct on irw"dment returns -it. lft"f f"nge for investors is twofold:.Thereisnometricokintoour,BlendedAccouniing.score,ovoilobleinthe

open morker. ,r"... ,r.ri.L .ight;;iffi whot-the occounling scores oftheir Portfolio comPonies ore''Thereoreotherospectsofcorporotegovernoncedistinctfromoccounting(eg.promoter i*"grt'ilg.i.i.f 'ond in"rid",, troding in porticulor)' which driveinvestment retu#s' These ospects of corporote governonce ore even moreoPoque thol occounting'ln response io these chollenges focing our clients, we offer two types of services:

For clients who ore willing to shore their.portfolio composition with us, we conshore with th.- trr" iizniJ o."orniing scores of, these componies. Forcomponies receiving weok occounting scorls. we con highlight ihe underlyingdrivers of such scores. {Note: we .con do this only for the BSE500 (ex-iinoi"iol4 universe thot we hove onolysed')Whilstinourongoingpublishedreseorchwewillfocusonthebrooderospeclsof corporot. gor".nin[., io. .li.*s who ore interested in o deeper dive intosuch issues, we provide o bespoke ,.r.o.ii service. our bespoke reseorch otthe slock-specific level gives invesio"'i totp"h"nsive onolysis of thepromote/s integrity, b;oti "ornpo'ition ond compelence ond insider trodingpotterns.

clients wishing to ovoil of these seryices should conioct our soles teom or theouthor of ihis note'

Ambit Copitol PYt Lid


15/18

MBIT

Appendix IExhibit 20: list of componies excluded from our occounling themoticSN Componies Reoson for Exclusion SN Componies Reoson for ExclusionI 3M lndio

2 A2Z Moinlenonce3 Abbott lndio4 Adhunik Metol5 Allohobod Bonk6 Allcorgo Logisi.7 A,rnlek Auto8 Amtek lndio9 Andhro Bonk10 Aptechl1 Aquo Logistics'I 2 ARSS lnfroI3 Axis Bonk14 Boioi AutoI5 Boioi Corp16 Boioi Fin.I I Bolol Ftnserv18 Boioi Holdings19 Bolrompur Chini20 Bonk of Borodo2I Bonk of lndio22 Bonk of Moho

Yeor erd chonge in beiween lhe periodsNot lisled for eniire lenureYeor end chonge in between lhe periodsNot listed for eniire ienureBFSINot lisied for enlire lenureJune ending compony, bolonce sheed nol yelreodyJune ending compony, bolonce sheet not yetreodyBFSIYeor end chonge in belween lhe periodsNot listed for enlire tenureNol listed for enlire lenureBFSIDemergerNot listed for entire lenureBFSIBFSIBFSIYeor end chonge in behrean'lhe pririodsBFSIBFSIBFSIYeor end chongein belween the periodsNot listed for entire tenureBFSIYeor end chonge in beiween lhe periodsNol lisled for entire ienureNoi listed for entire ienureNol listed lor entire lenureBFSIBFSIBFSIYeor end chonge in between the periodsNoi listed for enlire lenureBrstBFSI

Not lisied for enlire lenureNoi listed for enlire lenureCorporote oction in 2010Nol listed for enlire lenureBFSIBFSIBFSIBFSINot listed for entire lenureBFSI

81 JSW ISPAT85 Jyothy Lob.86 Komoloko Bonk87 Kemrock Inds.88 KF Airlines89 Kiri lndus.90 K S Oils9l KotokMoh. Bonk92 Kirloskor Oil

106 MVL107 Netwrk.l S MediqI 08 NHPC LTd.l09 Oil lndio110 Omoxe11 1 OnMobile Globol1 12 Orbit Corpn.I l3 Orientol Bonk1 l4 Porsvnoth Devl.115 PersisienlSys1 16 Pfizer117 PipovovDefence1 18 Power Fin.Corpn.I l9 Prism Cemenl120 Prroneto Inds.121 PTC lndio Fin'122 Pvn. & Sind Bonk123 Punlob Notl.Bonk, r, Roin'- ' CommodiliesI25 Relionce Copitol'I 26 Relionce MedioI27 Relionce Power128 Religore Enlerp.,l29 Rurol Elec.Corp.

Doio nol lhere for FY I 1 os onnuol report is

23242526272829303r32333435363738394041

Boyer Crop Sci.BGR Energy Sys.Bh.re Circle Ser.BOC lndioBrigode Enlerpr.C Mohendro ExpCoirn lndioConoro BonkCenlrol SonkCity Union BonkClorionl ChemicoCool lndioCorporotion BonkCrisilD B CorpD B ReoltyDolmio Bhor.Ent.

Den NelworksDeno Eonk

nol reodyNot listed for enlire lenureBFSIYeor end chonge in between the periodsNot lisled for ealire lenureNoi listed for entire tenureYeor end chonge in belween lhe periodsBFSICosh flow for FYI0 is nol ovoiloble. Alsocompony hos done demergining exercise93 KSK EnergyVen. Noi listed for enlire lenure94 L&T Fin.Holdings BFSI

95 LIC Housing Fin. BFSI96 M&MFinonciol BFSI97 Mogmo Fincorp BFSI98 Mohindro Holidoy Not listed for enlire tenure99 Monoppurom Fin. BFSII00 Mox lndio BFSI'l 0l Mindlree Not listed for entire tenure'l 02 MOIL Not listed for entire tenure103 Motil.Oswol.Fin. BFSI104 MphosiS Yeor end chonge in between lhe periods,l05 Muthoot Finonce BFSI

Dolo not there {or FY1 1 os onnuol ieporl isnol reodyBFSINot listed ior enlire lenureNot listed for enlire lenureNot listed for enlire lenureNot lisled for enlire ienureNot listed for enlire lenureBFSINot lisied for enlire lenureNot listed for enlire lenureYeor end chonge in belween the periodsNol listed for enlire lenureBFSIThey chonged lhe yeor end from 30ih June2008 lo 31st Morch 2009Dolo nol there {or FYl 'l os onnuol report isnol reodyBFSIBFSIBFSIYeor end chonge in belween lhe periodsBFSIYeor end chonge in between the periodsNot listed for entire tenureBFSIBFSI

42 Dev.Credii Bonk43 Dewon Housing44 Dhonloxmi Bonk45 eClea Services46 Edelweiss.Fin.

Ambit Copltol P\.t Ltd


16/18

MBIT-EAReoson for Exclusion SN Componies Reoson for Exclusion5N Componies

174819505l52535455565758596061

62

Eicher MolorsEss Dee Alumin.Federol BonkF irstsour.Solu.Fortis Heolth.Future CopilolFuture VenluiesGreoves CottonGRUH FinonceGTLGTL lnfro.Gui Pipovov PortHDFCHothwoy CobleHDFC BonkHind. Unilever

Yeor end chonge in belween the periodsNot listed for enlire tenureBFSINot listed for eniire tenureNot listed for enlire ienureBFSIBFSIYeor end chonge in beiween the periodsBFSIYeor end chonge in belween lhe periodsDolE not lhere {or FYl 1 os onnuol repori isnol reodyNot listed for entire tenureBFSINot lisled for enlire tenureBFSIYeor end chonge in belween lhe periodsYeor end chonge from 31it Morch 09 to 30thSept 10BFSIBFStBFSINot listed for enlire lenureBFSIBFSI

Sh.Ashiovinoyok Not listed for enlire tenureSh.Gtobolrrod. 3:;:J:?'n*'for FYl l os onnuol report isSh.Renuko Sugor Yeor end chonge in belween the periodsShiv-Voni OilGos Yeor end chonge in belween the periodsShree Gon.Jew. Not listed for enlire ienureShrirom Trons. BFSISJVN Not listed {or entire tenure

r30r3l132133r34r35136137138139140141112143141145

SBT BFSI

63 HFCL64 IDFC65 roB66 lClCl Bonk67 ICRA68 lDBl Bqnk69 lFCl

146147148149150151152r53154155156'15715815916016r162163164165

SKS MicrofinonceSouth lnd.BonkSREI lnfro. Fin.St Bk of BikonerSt Bk of lndioSt Bk of MysoreStond.Chorl.PLCSuiono TowersSyndicote BonkTolo lnv.Corpn.Techno Etec.Time TechnoplostTitogorh WogonsTorrenl PowerTriven.Engg.lnd.Wl I BroodcoslUCO BonkUnion Bonk (l)United Bonk (l)Uniled breweriesVideocon Inds.Viloyo BonkVoll.Tronsform.WockhordlWyethYes BonkZylog SystemsSPARC

BFSIBFSIBFSIBFSIBFSIBFSIBFSIYeor end chonge from 30th June 07 to 30thSept 08BFSIBFSIorporole oction in FYl 0Not listed for enlire lenureNot listed for enlire tenureYeor end chonge in belween the periodsYeqr end chonge lrom 3lst Morch 06 to 30thSept 07Not lisied for entire tenureBFSIBFSIBFSIDoto not there for FYI I os onnuol reporl isnot reodyYeor end chonge in belween the periodsBFSINot lisled for enlire tenureYeqr end chonge in between the periodsYeor end chonge in belween the periodsBFSINot listed for entire tenureDemerger become effective from Feb'07

70 lL&FS Tronsporl Not listed for enlire lenure71 lndiobulls Fin. BFSI72 lndiosecurities BFSI73 lndiobulls Power Not listed for enlire lenure74 lndiolnfoline BFSI75 lndion Bonk BFSI76 lnduslnd Bonk BFSI77 ING Vysyo Bonk BFSI78 IRB lnfro.Devl' Not listed for enlire lenure79 IVRCL Assets Not listed for enlire lenure80 J&KBonk BFSI8-l Joypee lnfrolec. Not listed for enlire lenure82 JM Finonciol BFSI83 JSW Holdings BFSI

Source: Ambil Copitol reseorch

Ambit Cqp;i,rl h/t Ltd


17/18

*nMsrAppendix 2

HrLil 2l: Nome of the ies included in our themcrticStl Corqonies Ambit Sector SN Componies Ambit Sector SN Componies Ambit Seclor2 DrRedd/s Lobs Phormo 1'14 Mundro Porl lnfroslructure 226 Akzo Nobel Chemicols3 CPCt Oil & Gos 227 Ashok Leylond Aulo,f Adrt),u 8ir. Nuv. Conglomerote5 Roymond Textiles6 Mcer Boer (l) lT7 Jindd Sroin. Melols8 Finolex lnds. Chemicols9 Finolex Cobles lnduslriols10 Ponoceo Eiolec Phormo1l Roiesh Exporfs Retoil12 Shoppers St. Retoil13 Rd. lndl. lrrfio lnfroslructure14 NoidoTollbridg. lnfrostruclure15 Hexowore Tech. 1TI6 Alslom Proiects Copilol Goods17 CESC ' Utilities18 HTMediq Medio19 Bhorol Eleclron lnduslriols

I 15 Hind.Zinc Melols.l16 Rollis lndio Agro117 Grosim lnds118 BHELI 19 Toto Coffee FMCG12O Zydus Wellness FMCG

'124 Conloiner CorPn. Logisiics125 Geodesic lT126 Timken lndio Auio Anc127 ABB128 Toto Chemicols Chemicols129 NMDC Mining

Conglomerole 229 Kirl. BrothersCopitol Goods 23O Joi Boloii lnds. Melols231 AIA Engg.232 Essor Ports

228 HPCL Oil & GosCopilol GoodslnduslriolslnfroslruclureCopitol GoodsCopitol GoodsTelecom236 Wolchon. lnds. Copitol Goods237 Elecon Engg.Co Copilol Goods238 Tulip Telecom lT

Copitol Goods

'121 Jindol Poly Film Miscelloneous 233 HEG122 JSW Energy Utiliti* 234 Arevo T&D123 Bolmer Lowrie Miscelloneous 235 Rel. Comm

Copitol Goods 239 Gommon lndio Consiruction24O Piromol Heolth Phormo24'l Dredging Corpn. Shipping

23 Usho Mortin Metols24 Toto Comm Telecom25 MRPL Oil & Gos26 Engineers lndio Conslruclion27 Tech Mohindro lT28 Jubilonl Food. Retoil29 VlPlnds.30 GSFC31 TTK Preslige32 Tiion lnds. Retoil33 DCHoldings Medio34 JSW Steel Melols35 3i lnfotech lT36 Coslrol lndio Chemicols37 Hovells lndio Indusiriols

Consumer Duroble '141 Deepok Fert. FeriilizersFerlilizers 142 Bosch Aulo AncConsumer Duroble 143 Amoro Roio Bott, Aulo Anc

243 Gulf Oil Corpn. Chemicols244 Neweli Lignite Utilities246 Holel Leelo Ven. Miscelloneous247 M&M Aulo

MiscelloneousConglomerole

253 Sodbhov Engg. Conslruclion254 Peninsulo Lond Reohy255 Eleclrosl.Cosi.Miscelloneous 256 Hind.CoPPer

20 GMR lnfro.21 0NGc22 GNFC

38 Thermox39 Nestle lndio40 Fog Beorings41 RCF42 Bhorti Airlel

47 ACC48 EIH49 Poloris Finon

lnfroslructureOil & GosFeriilizers

Copitol GoodsFMCGAuio AncFertilizersTelecom

CemenlMiscelloneousIT

266 Sinlex lnds.267 Toto Globol268 JP Associoles269 Jei Airwoys

lndustriolsMelols

lnduslriolsFMCGConglomeroteMiscelloneous

'I 33 Cummins lndio Copilol Goods 245 Bhushon Sleel Metols130 DLFl3l Birlo Corpn. Cemenl132 HCL Technologies lT

144 AP Poper

]50 Tolo Elxsi lT.l51 Phoenix Mills ReoltY152 Sterlile lnds. Melols153 Oberoi Reolty ReohY154 Everesl Konlo lndustriols155 Mcleod Russel Agro]56 NllT Tech" lT157 Arvind Ltd Textiles'I 59 lnfosys lT160 Monsonlo lndio Agro161 Unichem l.obs. Phormo162 Toto Power Co. Utilities1 63 lnfolech EnlerP. lT164 Sun Phormo.lnds. Phormo165 Emomi FMCG166 BASF lndio Chemicols167 Gloxosmit Phormo Phormo168 Lok. Moch. Works lndustriols

Reolry 242 KEClnil.

134 Jogron Prokoshon MedioI35 MRF Aulo Anc136 Jindol Steel Melols 248 Uflex137 Bhorot Biilee Copitol Goods 249 Adoni EnlerP138 Ambuio Cem. Cement 25O Aurobindo Phormo Phormo139 Biocon Phormo 251 Monnet lsPol Melols140 Gui Fluorochem Chemicols 252 Blue Slor Miscelloneous

145 Dishmon Phormo. Phormo146 Ullom Golvo Melols147 Rollo lndio lT148 Novortis lndio Phormo149 Elgi Equipment Copitol Goods 261 Ronboxy Lobs

257 Himodri Chemicol Chemicols258 Kolpotoru Power CoPitol Goods259 Jyoli Slruclures Copitol Goods260 Orchid Chemicols PhormoPhormo262 lngersoll-Rond Copitol Goods263 Oplo Circuiis Miscelloneous264 HCL lnfosyslems lT

265 Modhucon Proi. Construction43 Heidelberg Cem. Cemenl44 Torrent Phormo. Phormo45 Notl. Aluminium Melols46 Whirlpool lndio consumer Duroble 158 Coromondel lnier Ferlilizers 27O Alok lnds. Texliles271 Vordhmon Textile Textiles272 Vokrongee Sofl. lT273 Escorts Aulo274 McNolly Bhorot Copilol Goods275 Glodyne Techno. lT276 Zuori lnds. Fertilizers277 Rodico Khoiton FMCG

278 Unitech Reolty279 Gui NRE Coke Mining

50 Century Textiles Conglomerole5l Abon Offshore Shipping52 Hero MolocorP Aulo53 Toto Steel Melols54 Hind.Oil Explor. Oil & Gos55 lndroproslho Gos Utilities56 GMDC Mining 280 Simplex lnfro Conslruclion


18/18

*nmPpSN Componies Ambit Sector SN Componies Ambit Sector SN Gomponies Ambit Seclor575859606l62636465666768697071727374757677787980818283848586878889909l9293949596

't69170

281282283284285286287288289290291

Britonnio lnds.Petronet LNGOrienl PoperMercoiorGui AlkoliesAlfo Lovol (l)UltrqTech Cem.Tinplote Co.SRFSupreme lnds.Hindolco lnds.Goiewoy Dislr.Greol OffshoreSeso GooGE Shipping CoSterlite Tech.Gui Gos ComponycMcPotni ComputerKonsoi NerolocPidilite lnds.Bhorol ForgeSun TV NetworkSuzlon EnergyBF UtilitiesProkosh lnds.tTc97 lndion Holels98 P&GHygiene99 Crompion GreovI00 Tolo Molors

l 0l SKF lndio1O2 Boto lndio103 ABG Shipyord.l04 Dobur lndio'I 05 Moruti Suzuki1 06 NTPC.l07 Orocle Fin.Serv.I08 Asion Poinis109 Modros Cemenl1 10 TCSI 11 Apollo Tyresll2 JBChem&Phorm

Gui.St.PetronetShree CementPower Grid CorpnExide lnds.GAIL (lndio)GloxoSmith C H LGommon lnfro.Colgote-Polm.Notl.Ferlilizerlndio Cemenisldeo CellulorBollorpur lnds.FDC

Oil & GosCementUtilitiesAulo AncOil & GosFMCGlnfroslruclu reFMCGFertilizersCemenlTelecomMiscelloneousPhormoFMCGOil & GosMiscelloneousShippingChemicolsCopitol GoodsCementMelolsTextileslndustriolsMelolsLogistics

ShippinsMiningShippinslnd uslrio lsUtililiesITIT

ChemicolsChemicolsAulo AncMedioCopitol GoodsUtilitiesMetolsFMCGMiscelloneousFMCGCopitol GoodsAuloAulo AncRetoillnfroslructureFMCGAuloUiilitiesIT

ChemicolsCemenlITAuto AncPhormo

JubilontBPCLJP Power Ven.Asohi lndio GlosJBF lnds.Strides ArcolobAvenlis PhormoBerger PoinlsBomboy DyeingNIITBolkrishno lndsDivi's Lob.WiproSiemensLupinNovo Bhorol VentT N NewsprintLonco lnfrolechSAILCodilo Heolth.VST lnds.VoltosUnited Phosp.KPIT lnfosys.Bilcorelnfo Edg.(lndio)sclSundrom Foslen.Thomos Cook (l)Koruluri GlobolNovneel PublicotWS Motor Co.Gillette lndioZee EntertoinmenGodrei ConsumerGlenmork PhormoMoiherson SumiRelionce lnds.Toio Tele. Moh.lpco Lobs.Blue Dorl Exp.Boioi ElectricolMMTCGVK Power lnfro.Proi lnds.EID PorryPolyplex CorpnCiploMoricoApollo HospitolsGrophite lndioKesorom lnds.CorborundumUni.

PhormoOil & GosUtilitiesAulo AncTextilesPhormoPhormoChemicolsTextilesIT

Aulo AncPhormoITCopilol GoodsPhormoConglomeroteMiscelloneousI nfrostruclu reMelolsPhormoFMCG

MiscelloneousChemicolsITMiscelloneousIT

ShippingAuto AncMiscelloneous

MiscelloneousMiscelloneousAuioFMCGMedioFMCGPhormoAulo AncOil & GosTelecomPhormoLogisticslnd uslrio lsMiscelloneouslnfroslructu reCopitol GoodsAgroMiscelloneousPhormoFMCGPhormolnduslriolsConglomerotelnduslriolsLogisticsFMCGMiscelloneous

Dish WRelionce lnfro.Ruchi Soyo lnds.Hind.Consiruct.Everonn Educol.Join lrrigotionLorsen & ToubroSobho DeveloperEro ln{ro Engg.Cox & KingsCORE Educotion292 TVRCL293 NCC294 Prestige Eslotes295 Bhoroti Shipyord296 Redington lndio297 Essor Oil298 Bomboy Royon299 Adoni Power

300 S Kumors Nolion301 Gitonloli Gems302 CCCL303 Joi Corp304 Boioi Hindusthon305 Tube lnvestments306 Purovonkor.Proi.3O7 Anonl Roi lnds.308 Poiel Engg.309 Provogue (lndio)3lO Puni Lloyd3]1 Ponioloon Retoil312 BEML LTd313 rocL314 Finonciol Tech.31 5 SpiceJet316 ICSA (lndio)317 Delto Corp318 Trenl319 STC320 Godrei lnds.32'l Mohindro Life.322 HMT323 Fres.Kobi Onco.324 MTNL325 REI Agro326 U B Holdings327 HDIL328 PTC lndio329 Kwolity Doiry330 Ansol Properties33] Subex332 Godrei Propert.333 KGN lndustries334 UW Softwore335 Sunteck Reohy

MedioUtilitiesFMCGConslruclionMiscelloneousAgroConslruclionReoltyConslruciionMiscelloneousITConstruclionConslructionReoliyI nfrostruclu reITOil & GosTextilesUtiliriesTextilesMiscelloneousConslruction

MiscelloneousAgroMiscelloneousReoltyReoltyConslructionRetoilConstruclionRetoilCopitol GoodsOil & GosITMiscelloneousIT'ConglomeroleRetoilMiscelloneousConglomeroieReoltylnd ustrio lsPhormoTelecomAgroConglomeroleReoltyMiscelloneousFMCGReohyITReoltyMiscelloneousMedioReoliy

17'l172't73174175't7 6't77178179't80r81182183184r85186187r88't 89'r 90191192193194195196197'r 9819920020120220320420520620720820921021'l2122132142't5216217218219220221222 Arshiyo lntl.223 Uniled Spirits224 Educomp Sol.

Source: Ambit Copitol reseorch

ambit accounting thematic

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