Balaji Telefilms Ltd.

“Quarter’s Five Forces Report”

The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is making high growth strides. Proving its resilience to the world, the Indian M&E industry is on the cusp of a strong phase of growth. The entertainment industry continues to be dominated by the television segment, with the segment accounting for 44.24 per cent of revenue share in 2016, which is expected to grow further to 48.18 per cent by 2021.

Balajitelefilms limited is a leading content provider in the Indian entertainment industry and has been in business since 23 years.  It has its business diversified in television industry, motion pictures and digital media. The company occupies a dominant space in the television content creation space, with the No.1 show on Indian television to its credit and all of its shows among the Top 50 on television. Currently its producer of several leading serials on major channels like Star Plus, 9X, Sony TV, Zee TV and SUN TV network.

Competitive Forces and Balaji Telefilms Ltd

Threat of new entrants:

Television content production is a capital intensive business and requires reasonably high capital investment. There are also many regulatory requirement related to the content produced.Balaji telefilms limited already has around 250+ hour of premium original and exclusive content.  Also, production and distribution of motion pictures too need high investment. Making the barriers to enter production and distribution channel very high.

Threat of substitute:

In the current scenario there is threat to television shows from the digital media, younger generation shifting to online series rather than television shows. Making the threat of substitute high, althoughBalaji telefilms limited has diversified in digital media and launched ALTbalaji, the subscription based entertainment platform with six new shows and planning to add new shows every month, in order to mitigate the threat.

Bargaining power of buyers:

Balaji Telefilms limited sells it content to different broadcasters namely star TV, ZEE and Viacom. Since it is able to command higher TRP, hence, bargaining higher margin from broadcasters compared to its peers. Although due to some tie ups with certain broadcaster it has to sell and air its content on prime slot to that specific broadcaster. Therefore, making the bargaining power of buyers moderate.

Bargaining power of seller:

The suppliers in this case are the actors. Balaji Telefilms, being the largest entertainment software provider, evinces a lot of interest from aspiring actors who are eager to work with it. Thus the bargaining power of the aspiring actors is very low. However, once these aspirants become household names their demands increase resulting in higher salary costs to the company. Hence, the bargaining power is moderate.

Rivalry between existing players:

The rivalry between production houses is high and they try to poach each other’s actors, creative personnel and technicians. Since, Balaji telefilms is at leader’s position it easily attracts new talent and retention of current buyers and suppliers is easy.  Further, they plan to earn the Intellectual Property (IP) rights of all the content that they create as to own it. By this making the rivalry forces low.

By:- Sunaina Vaidya.

Eicher Motors Limited





Eicher Motors Limited

CIN No.: L34102DL198PLC129877

Regd. Office: 3rd floor, Select Citywalk

A-3, District Centre, Saket, New Delhi- 110017

Phone No.: +91-124-7102900



Name of the Company: Eicher Motors Limited

Listed on BSE and NSE


BSE Code: 505200

Market Cap: INR 74,492.67 Cr.

Revenue: INR 7939.45 Cr.

Profit: INR 1664.65 Cr.

Current Market Price on NSE: INR 27328.15

Current Market Price on BSE: INR 27350.10


Eicher Motors Limited(EML) is the flagship company of the Eicher group. EML is the leading player in the Indian Automotive space. It operates in 3 distinct business verticals- Motorcycles, Commercial Vehicles and Personal Utility Vehicles.EML owns the iconic Royal Enfieldmotorcycle business, which leads the premium motorcycle segment in India. The oldest motorcycle brand in continuousproduction world-wide, Royal Enfield has witnessed a huge surge in demand in the recent past and is charting its courseto be the leading player in the mid-sized motorcycle segment globally. EML’s joint venture with the Volvo group, VE

Commercial Vehicles Limited, designs, manufactures and markets reliable, fuel efficient trucks and buses; and is leadingthe path in driving modernization in commercial transportation in India and other developing markets. EML’s 50:50 strategic jointventure with USA-based Polaris Industries Inc. formed in 2012, Eicher Polaris Private Limited launched the Multix, a new3-in-1 vehicle purpose built for the independent businessman in June, 2015.


Product Portfolio

  • A division of EML, Royal Enfield has created the mid-size motorcycle segment in India. Royal Enfield’s product line-up includes
  1. Bullet
  2. Classic
  • Thunderbird
  1. Continental GT
  2. Himalayan
  3. Interceptor

Further in 2012 Royal Enfield launched Royal Enfield Gears.

In January 2018, Royal Enfield has setup its First Royal Enfield Garage Café in Goa. The Garage Cafe is a massive 120-seater cafe and also has a Royal Enfield motorcycle museum-and-exhibition area, an exclusive gear store, a motorcycle customization area and a service bay.



  • VE Commercial Vehicles Ltd. JV of EML and Volvo group deals in complete range of commercial vehicles which include
  1. Eicher Light to Medium Duty Trucks (5-15 tonne)
  2. Eicher Heavy Duty Trucks (16 tonne +)
  • Volvo Trucks including Mining and Tunnel Trippers
  1. Eicher Buses
  2. Euro-6 compliant enginemanufactured in VE Powertrain, the first engine plant in India producing Euro-6 compliant engine.
  3. Strategic supplier of drive line components and aggregates to Escorts, Mahindra, Voltas, Royal Enfield etc.
  • In 2012 EML signed a strategic JV agreement with Polaris Industries Inc. to design, manufacture and sell full new range of personal vehicle. In 2013, the JV company Eicher Polaris Private Limited set-up its manufacturing facility in Jaipur, Rajasthan. Its first vehicle was launched in 2015 named “MULTIX” which was India’s first personal utility vehicle which can be used as people carrier, cargo carrier and power generator.

Infrastructure Facility

  • Royal Enfield
  • Royal Enfield has 3 manufacturing plants in Chennai having total capacity of 8,25,000 units in F.Y. 2017-18 which will be 9,00,000 units in F.Y. 2018-19.
  • It has 2 Technology centres in Chennai and UK.
  • Presently total dealers in India are 761. They are planning to increase No. of dealers to 825 by March 2018.
  • It has 35 exclusive stores overseas.
  • VECV
  • In Pithampur it has
  • Commercial Vehicle Manufacturing Plant having capacity of 84,000 trucks and buses, and scalable up to 1,00,000 trucks and buses
  • VE Powertrain Facility having current capacity of 50,000 engines, scalable up to 1,00,000 engines and it has already started supplying Euro-6 compliant engine to Europe over 3,000 per month.
  • Eicher Engineering Component has production facilities at Thane, Dewas and SEZ, Pithampur for components and aggregates for VECV, Escorts, Mahindra, Royal Enfield etc.
  • In Baggad, MP it has bus body plant.
  • of dealers are 299 including 15 Company Owned Company Operated (COCO) outlets.
  • It has 22 distributors, 161 Eicher Genuine Parts Shoppe and 2,283 multi-brand parts retailers
  • It has 224 GPS enabled Vans and 29 Container Set up Sites.
  • In 10 Months of F.Y. 2017-18 export of Commercial Vehicle is 6723 units.
  • Eicher Polaris Private Ltd
  • It has manufacturing facility at Jaipur having capacity of 60,000 units per annum and which can be expanded up to 1,20,000 units equipped with robotic weld lines and in-house paint system.
  • It has 97 domestic stores and it is focusing on nearby International markets such as Nepal, Bangladesh and Sri Lanka.


Employee Details(As of December 2017)

Sr. No. Company Name No. of Employees
1 Eicher Motors Limited 2910 (excluding outsourced)
2 VE Commercial Vehicles Limited 4827 (permanent)
3 Eicher Polaris Private Limited 420+



Director Details

Eicher Motors Limited VE Commercial Vehicles Limited Eicher Polaris Private Limited
Ø  S. Sandilya

Non-executive Chairman

Ø  HakanKarlsson


Ø  Michael D. Dougherty


Ø  Siddhartha Lal

Managing Director & CEO

Ø  VinodAggarwal

Managing Director & CEO

Ø  PankajDubey

CEO & Whole Time Director

Ø  MJ Subbaiah

Independent Director

Ø  Siddhartha Lal

Eicher Nominated Director

Ø  Siddhartha Lal

Eicher Nominated Director

Ø  PrateekJalan

Independent Director

Ø  Jacques Michel

Volvo Nominated Director

Ø  Lalit Malik

Eicher Nominated Director

Ø  ManviSinha

Independent Director

Ø  Philippe Divry

Volvo Nominated Director

Ø  B Govindarajan

Eicher Nominated Director

  Ø  Raul Rai

Eicher Nominated Director

Ø  Michael Todd Speetzen

Polaris Nominated Director

  Ø  PrateekJalan

Independent Director

  Ø  Lila Poonawalla

Independent Director


Group Structure

List of Subsidiaries

Sr. No. Name of Subsidiary
1 VE Commercial Vehicles Ltd (VECV)
2 VECV Lanka (Private) Ltd
3 VECV South Africa (PTY) Ltd
4 Royal Enfield BrasilComercio de MotocicletasLtda
5 Royal Enfield North America Limited (RENA)
6 Royal Enfield Canada Limited
7 Eicher Group Foundation (Sec. 8 Company)


Joint Venture

  • Eicher Polaris Private Limited

Recent Updates

  • Eicher launched first ever Skyline Pro Electric buses in collaboration with KPIT’s Revolvo Technology.
  • In January 2018, Royal Enfield has setup its First Royal Enfield Garage Café in Goa. The Garage Cafe is a massive 120-seater cafe and also has a Royal Enfield motorcycle museum-and-exhibition area, an exclusive gear store, a motorcycle customization area and a service bay.
  • In April, 2017, Royal Enfield had opened a direct distribution subsidiary in Brazil, as well as its first exclusive store in Sao Paulo.
  • Royal Enfield will be launching the twin-cylinder new motorcycles Interceptor 650 and Continental GT 650cc in India in the summer of 2018.
  • Royal Enfield, a division of Eicher Motors, has started commercial production from its new manufacturing facility at Vallam Vadagal near Chennai. This plant will be Royal Enfield’s third facility.
  • Eicher announced its new range of light and medium (LMD) trucks in Indian market to meet the rapid transportation demand of the e-commerce industry. The company introduced 5 new variants in the Pro 1000 andPro 3000 series.
  • VE Commercial Vehicle (VECV) holds 100% equity in Eicher Engineering Solutions Inc., USA (EESI). EESI holds 100% equity in Eicher Engineering Solutions (Shanghai) Co. Ltd. and Eicher Engineering Solutions (Beijing) Co. Ltd. On March 17, 2017, VECV has disinvested 100% holding in EESI for $1.85 million. Accordingly, EESI and its wholly owned subsidiaries of Shanghai and Beijing have ceased to be subsidiaries of VECV, and in turn, have also ceased to be subsidiaries of Eicher Motors Limited.

By:- Piyush Jain

SWOT Analysis Report – “HAVELLS INDIA LTD”



                             “SWOT Analysis Report”

CATEGORY Electrical equipment
SECTOR Energy power and electrical equipment
TAGLINE Deeper into homes
USP One of the most trusted brand of electrical goods providing best quality at affordable prices and frequently comes up with new innovations.




SEGMENT Cables, motors, switchgears, reactive power solutions, heavy duty fans, professional lighting.
TARGETED GROUPS Construction companies, dealers, distributors.
POSITIONING A quality power of powerful, innovative, affordable and energy efficient electrical goods.




STRENGTH ·         The company has a strong distribution network (it has 7575 no. of dealers and 1702 dealers are added to it this year).

·         The company has a good acquisition history, it has acquired some of the prestigious Indian brands like of Standard Electrics, Crabtree, Promptech, and a latest acquisition of Lloyd.

·         It has a strong brand image.

·         The company is awards by various authorities like Shri Rajpal Singh Shekhawat, honourable minister of industries.

WEAKNESS ·         Power dependent segments will be affected with less or no power supply.

·         Electric goods are majorly required in infrastructure for example government’s construction activities, any slowdown or delay in such activities will affect the company.

OPPORTUNITIES ·         Focus of government on electrification and commitment to improve infrastructure and housing, the use of electrical goods is assured.

·         Emerging middle class people towards better standard of living, the company can expect growth in future.

·         By having a wider base of distribution network, company can introduce its products to new geographical areas.

·         GST is likely to be implemented in 2017-18, with this the company hopes to leverage its brand positioning and distribution network.

THREATS ·         Segments like cables and switchgears are dependent on industrial and infrastructure capital expenditure, any delay would affect the segmental revenue growth.

·         With the view of potential growth in electrical equipment industry, the number of players under the industry has increased; the increase in competition is likely to put pressure on existing players.

·         Downfall in economy will affect its growth by being a cyclic company.

By:- Kratika Bhatt.

MRF Ltd (MDA Report)


                     Madras Rubber Factory Ltd

Reg Off: New No. 114, Greams Road, Chennai, Tamil Nadu, India


Economy and Industry Overview

The year of 2016-17 started on a positive note with normal monsoon, relatively low inflation and a modest budgetary support to drive consumption growth. Expectation of higher Government spending on infrastructure also indirectly increased growth expectation. However demonetisation also impacted automobile industry and ultimately it was survived by trade and customers in smaller markets. Impact of demonetisation was however substantially recovered by the end January 2017.

The Indian tyre industry grew by 3.6% and in value it is estimated to be Rs. 55,000 Cr. in 2016-17.Tyre industry is directly affected by automobile sector. It majorly comprises of Commercial Vehicle segment consisting of Heavy, Light, Small Commercial Vehicles (H/L/SVC). The next largest segment is Passenger Vehicle consisting of Car, Sports Utility Vehicle (SUV), Motorcycle and Scooters.

Traditionally tyres are classified as Cross-ply (Bias) and Radial based on technology deployed in their manufacture. In India, the commercial tyre segment continues to be dominated by Cross-ply tyres due to road condition, loading capacity and higher cost of Radial tyre.

Tyre industry consist of three distinct markets namely Replacement, Institutional/ Original Equipment Manufacturer (OEM) and Exports. By value, Replacement Market accounts for approximately 60%, Institutional / OEM and Exports making up to 22% and 18% respectively. Of the total tyres produced in India, top 11 tyre companies account for more than 90% of the volume.

Tyre industry provides direct and indirect employment of more than million people, comprising of dealers re-traders and truck operators. This business, has historically transacted in cash and will face more difficulties as moving in modern methods for payments via NEFT, cheque etc. to reduce cash transaction.

The Indian Automotive sector registered a reasonable growth of 10.6% in sales in passenger Vehicle Industry. It is considered as positive sign even after various adverse factors such as Demonetisation, ban on diesel car in NCR and changeover in emission norms. There was huge demand noticed in Utility vehicles that resulted significant growth in passenger car segment. Apart from domestic sales, export sales also shown an increase of 16.2%.

The company has now entered its fourth decade of leadership in Indian tyre Industry and is also Fourteenth largest manufacturer worldwide. In past year there were various economic factor, favourable and unfavourable and made the year rather unpredictable. There were various unexpected economic reforms, changes in political environment, uncertain global market including events such as BREXIT. Growth of Indian tyre industry was also at moderate pace due to Impact of demonetisation and subdue realisations. Besides of these, Indian economy continued to be beacon of high growth among global market.

Opportunities and Threats

There was a positive impact on domestic industry on Heavy Commercial Vehicle (HCV)/ Medium Commercial Vehicle (MCV) segment which was due to non-availability of cheap Chinese tyres into country.

In the medium to long term duration, with the US International Trade Commission’s favourable ruling in the case of Chinese Tyre imports into the US, it is expected that Chinese exports to the US will revive and this will somewhat bring down the imports of cheap tyres into India. With increase in Global Natural Rubber prices, it can be said that prices of domestic tyre will be less than that of imported tyre. Apart from international decisions, HCV and MCV production boosted because of transition enforced by the Supreme Court Judgment on BS-III and BS-IV transition. However the same judgment will have positive impact on replacement segment later in the year.

Key Drivers

Natural rubber is primary raw material for tyre industry. It is totally dependent on environment factors rather than entirely importing from foreign countries. With normal monsoon during the previous year, risk of non-availability of natural rubber was however mitigated to some extent.

Segment wise and Product wise Performance

During the financial year 2016-17 Company’s turnover of Rs. 14,743 Cr. as against Rs. 22,162 Cr. for the previous 18 months period ended 31st March 2016. Across the board there was an overall increase in all segments adding up to a 10% increase in total tyre production. The same is analysed below:

Particular Increase over previous year
Heavy Commercial Vehicle 3%
Light Commercial Vehicle 11%
Passenger & Sports Utility Vehicle 5%
Motorcycle 12%
Scooter 22%
Farm Segment 5%


The outlook for the domestic tyre industry looks stable in the short to medium term due to favourable demand in both domestic and export markets. The issue of raw material cost escalation especially of natural rubber is there which will ultimately reduce the operational margins for a while in near future.

Recently a report shown lack of availability of natural rubber and forcing company to import the same, it will cost to company Rs. 27 extra as compare to domestic price.

However with good monsoon and investments in infrastructure segment will result increasing growth in GDP and will have positive benefits for tyre industry. The positive indication shown by the infrastructure and rural sectors in recent months will definitely have impact on tyre industry, both in Original Equipment and Replacement markets.

On account to increase overall revenue to achieve target of around Rs. 20,0000-Rs. 22,000 Cr by 2020-21, company plans to invest Rs. 800-1,000 Cr. every year on its existing products in relation to Automation and Research & Development, and Brown Field Areas of Gujarat. Also commitment is already made to invest Rs. 4000 Cr in Gujarat for the same purpose.

By:- Vishal Patel

JK papers Ltd Analysis


                       RATIOS REPORT JK PAPER LTD


  2015-16 2016-17 2016-17
Current ratio 0.75 1.03 0.86
Quick ratio 0.20 0.47 0.32
Cash ratio 0.03 0.33 0.06
Defensive interval ratio 26 62 80


Strong Cash flows from operating activities coupled with working capital optimization have improved the liquidity position of the company during the year. A close competitor’s, Emami papers ltd., ratios also stand in the same vicinity as the industry average with an exception of defensive interval ratio which stands at 80 because of a higher cash component. The following represents the detailed analysis:

Particulars As at April 1 ,2015 As at March 31st,2016 As at March 31st,2017
Current accounts 9.45 7.24 15.05
Cash on hand 0.31 0.49 0.46
Total 9.76 7.73 15.51


As one can see, the cash and cash equivalents have increased from 7.73 crores in 2016 to 15.51 crores in 2017 owing to an increase in the current accounts which has shown a positive impact on the quick ratio, cash ratio and defensive interval ratio.

Particulars As at April          1st  ,2015 As at March 31st,2016 As at March 31st,2017
Unclaimed Dividend account 0.18 0.15 0.12
Fixed Deposit with scheduled banks 7.41 6.76 11.76
Total 7.59 6.91 11.88


The company saw an increase in its bank balances from 6.91 crores in 2016 to 11.88 crores in 2017 because of fixed deposits with scheduled banks including 1.48 crores pledged with government authorities. This has affected the cash availability of the company further increasing the quick ratio, cash ratio and defensive interval ratio.

Particulars As at April   1st,2015 As at March 31st,2016 As at March 31st,2017
Investment in Liquid Funds 10.01 242.59
Total 10.01 242.59


The current investments segment has seen a major boost due to an investment done by the company in liquid funds at the book value of 242 crores. This has impacted the current ratio and the marketable securities aspect of quick ratio, cash ratio and defensive interval ratio.

Apart from the above, the current liabilities have not shown any significant change.

Particulars                     JK PAPER LTD. EMAMI PAPERS LTD.
  2015-16 2016-17 2016-17
Debt to Equity ratio 1.72 1.28 2.37
Debt to Assets ratio 0.54 0.48 0.64
Financial leverage Ratio 3.35 2.92 0.98
Interest Coverage Ratio 1.40 2.09 1.25



The company’s Debt to equity ratio strengthened from 1.72 to 1.28 with the borrowings decreasing from 1891.77 to 1697.70. The company also saw an equity infusion from 1102.10 crores to 1321.52 crores owing to conversion of FCCB Series 3 bonds. Also, an amount of 15.46 crores has been considered other equity on request of an FCCB holder. Also, Emami paper’s debt equity ratio stands at 2.37 due to an increase in the current maturities of long term debt.


As mentioned above, equity has increased to 1321.52 crores on account of a conversion of FCCB Bonds to equity thereby increasing the denominator of the financial leverage ratio. In contrast, average total assets (numerator) have not seen a significant change resulting in an overall decrease in the said ratio. Emami paper’s financial leverage is lower in comparison due to huge amounts in equity as well as total assets.



The interest coverage ratio has increased from 1.40 to 2.09 as a result of an increase in EBIT from 273.94 crores to 392.90 crores and a decrease in interest payments from 195.23 crores to 187.64 crores the details of which are represented below. During the year Company has managed the interest rate and currency exposures in an efficient manner with the optimum mix of forwards, options and swaps.

Particulars 2015-16 2016-17
Sundry 175.46 168.27
Interest on others 20.66 13.01
Net (gain) or loss on foreign currency transactions (0.89) 6.36
Total 195.23 187.64


The company (JK Paper Ltd.) selected to borrow 56 per cent of its total debt mobilized to fund the expansion in foreign exchange (over the conventional approach of mobilizing debt through rupees). Nearly 76 per cent of the forex debt was mobilized in Euros. The total delivered debt cost was lower than the prevailing Indian average. The company saved an aggregate Rs 260 crores in lower interest costs than if the debt had been mobilized in rupees.

Particulars           JK PAPER LTD. EMAMI PAPERS LTD.
  2015-16 2016-17 2016-17
Receivables turnover ratio 1.72 1.28 9.03
Inventory turnover ratio 0.54 0.48 3.84
Payable turnover ratio 6.49 7.09 9.06
Total Assets turnover Ratio 0.78 0.72 2.52
Fixed Assets Turnover Ratio 0.98 0.93 0.91
Working Capital turnover Ratio -13.46 -28.46 -16.69
Average Collection period 18 days 15 days 40 days
Inventory processing period 61 days 64 days 95 days
Payables Payments period 56 days 51 days 40 days
Cash conversion cycle 23 days 28 days 95 days



Better credit control measures have over the years reduced the receivable resulted in reduction in number of day’s receivables from 18 days of previous year to 15 days in current year in spite of higher sales volume. The company moderated receivables in quantum (5.4%) as a proportion of the capital employed from 23.3% in 2012-13. Emami papers saw greater receivables turnover on account of more sales and less receivables in comparison to JK Paper, thereby increasing the average collection period as well.


The ratio improved from -13.46 to -28.46 due to good management of cost of working capital funds by using optimum utilization of working capital limits in vendor financing, buyer’s credit facilities and Export packing credit facilities. Working capital cost was 300 bps lower than the prevailing market average.


The change in payables turnover ratio arises out of the change in average trade payables from 226.85 to 209.65. The payment period has deteriorated from 56 days in the previous year to 51 days in the current year which could be due to an increased foreign currency risks exposure.


The cash conversion cycle has increased from 23 days to 28 days mainly on account of a decrease in the payables payment period and an increase in the inventory processing period from 61 days to 64 days which represents the increased time the inventory needs to convert into sales. Emami paper has a greater cash conversion cycle mainly due to a higher inventory processing period as well as a higher collection period in comparison to JK Paper.

Particulars                    JK PAPER LTD.   EMAMI PAPERS LTD.
  2015-16 2016-17 2016-17
Net Profit Margin 2.37% 5.89% 2.28%
Gross Profit Margin 20.14% 23.63% 32.28%
Operating Profit Margin 10.68% 14.21% 6.28%
Pretax Margin 3.07% 7.43% 1.28%
Return on Assets (ROA) 4.62 1.72 0.06
Operating Returns on Assets 11.14 7.74 0.16
Return on Total Capital 0.09 0.13 0.05
Return on Equity 5.52% 12.32% 5.61%



The net profit margin has increased from 2.37% in 2016 to 5.89% in 2017 owing to an increase in other incomes from 10.50 to 26.45, the details of which are given below:

Particulars 2015-16 2016-17
Profit on sale of current investment 0.17 14.63
Others 10.33 11.82
Total 10.50 26.45



The gross profit margin has increased to 23.63% in the current year from 20.14% in the previous year mainly on account of a decrease in cost of goods sold on the back of elimination of import duty. As for Emami papers, the gross profit margin stands at 32.28% due to a higher cost of materials.


Return on equity has increased owing to an increase in equity due to FCCB Bond conversion and an increase in the net income as well. Following is the detailed DuPont Analysis of the same:

Particulars 2015-16 2016-17 Emami Papers Ltd.
Return on equity 5.52% 12.32% 5.61%
Tax Burden 77.33% 79.33% 178.55%
Interest Burden 28.73% 52.24% 20.30%
EBIT Margin 10.68% 14.21% 6.28%
Asset Turnover 73.71% 76.87% 65.06%
Financial Leverage Ratio 3.35 2.97 0.98


Return on Equity has increased on account of an increased tax burden that saw a growth from 28.73% in the previous year to 52.24% in the current year. The same is the case with Emami papers ltd. wherein the biggest contributor to Return on Equity is the tax burden that stands at 178.55%.


By- Shubhangi Thapliyal.


Let’s know about DOMINOS.



Jubilant FoodWorks Ltd.
Plot No. 1A, sector-16A, Noida- 201301
U.P., India

Name of the Company Jubilant FoodWorks Limited
Corporate Identification Number L74899UP1995PLC043677
Date of Registration 16th March 1995
BSE Code 533155
ISIN Number INE797F01012
Contact Number 0120 4090500
Contact Person Mona Aggarwal (CS & Compliance Officer)
Current market price 1790.20 INR

Jubilant foodWorks limited (company) is a Jubilant Bhartia Group Company. The company was incorporated in 1995 and initiated operations in 1996. The company got listed in February 2010. The Promoters are Mr. Shyam S. Bhatia, Mr. Hari S. Bhatia, Jubilant energy private limited, Jubilant consumer private limited (formerly jubilant fresh Pvt. Ltd.)
The company and its subsidiaries operate dominos pizza brand with exclusive rights for India, Nepal, Bangladesh & Sri Lanka. At present it operates in India and Sri Lanka. The company is having 1126 dominos pizza restaurants across 264 cities (as on F.Y. 2016-2017). The company has opened dominos restaurant in 29 new cities in 2017.
The company has one wholly-owned foreign subsidiary Jubilant Foodworks Lanka (Pvt.) Ltd. Which operates Domino`s Pizza business in Sri Lanka and having 23 restaurants.

The first domino`s pizza in India opened in new Delhi in 1996. India was the third largest market in 2013, behind US & UK. In 2014, India became Domino`s second largest market. Domino`s began accepting online orders in 2011, and online orders accounted for approximately 18-20% of total sales as of December 2013.

Product & segment:-

The company has the franchisee for two international brands under its roof. Domino`s pizza and Dunkin Donuts.
The company launched Dunkin Donuts in India in 2012 in Delhi and has 50 Dunkin donut restaurants. Dunkin` Donuts is a subsidiary of Dunkin` Brands and is the world`s leading baked goods and coffee chain, selling more than 1 billion cups of coffee a year and more than 3 million customers per day. The company has opened Dunkin donuts restaurant in 13 new cities in 2017.
Company has two distinct non competing segment one is home delivery of pizza`s market and all day part food & beverage market.

Recent updates:-
The company was headed by Ajay Kaul since 2005. Pratik Pota became the CEO from April 2017.
The company has created a new digital team to spearhead the technology and appointed Anand Thakur as Chief Digital Officer (CDO).


By:- Surya Samdani

Lets know about Talwalkars.

Author :  Akansha Mehta.

Talwalkars Better Value Fitness Ltd, popularly known as Talwalkars, is India’s largest chain of health clubs. It has 198 Health Clubs across 85 cities in India on a consolidated basis, with over 200,000 members. It provides various health calculating services such as body mass index, calorie burn calculator, heart rate calculator, ideal weight calculator, body fat calculator and basal metabolic rate among other. The first gym being set up in Mumbai in 1932 and now offers a diverse set of services including gyms, spas, aerobics and health counseling. At Talwalkars, they generate multiple fitness and wellness streams that extend beyond core gymming which comprise of value-added services like transform, reduce, uniform, nutrition, spa, massage, aerobics, yoga and dietary regimes etc.

Headquarter: Mumbai

CEO: Prashant Talwalkar (18 Jun 2009–)

Founder: Vishnu Talwalkar

Founded: 1932

Revenue: Rs 2860 million in INR (For F.Y-2016-17)

CIN: U92411MH2003PLC140134



The multiple health and fitness services are provided by the Company through five fitness centre formats of Talwalkars Premium/Large format Gyms, Talwalkars (formats mostly located in Metros), PWG (Power World Gyms at Colombo, Srilanka), HiFi (low cost format mostly located in non-metro locations) and Zorba Studios yoga studios chain). They have partnerships with -:

  1. Zorba-Zorba which offers customized programs and camps for corporate, where they teach aerobic exercises for weight loss, incorporating various techniques of yoga and zumba to manage stress and overall well-being.
  2. Power World Gyms Limited- This operates and manages the largest chain of gyms in Sri Lanka under the brand name “Power World”.
  3. Talwalkars David Lloyd Leisure Consulting provides consulting for leisure and sports clubs in high-end residential developments, gated community townships and corporate campuses.
  4. Talwalkars gym is a proud associate of Zumba Fitness. In addition to its many physical benefits, Zumba also has a positive effect on emotional well-being.
  5. Growfitter-: From Yoga to Kickboxing, Pilates to Zumba, Growfitter is one stop shop for all things fitness which is something to look forward.

Management and direction


Sr. No. Name of Executive Director Designation
1 Girish Talwalkar Executive Chairman
2 Madhukar Talwalkar Whole-time Director
3 Vinayak Gawande Whole-time Director
4 Prashant Talwalkar Managing Director & CEO
5 Anant Gawande Whole-time Director & CFO
6 Harsha Bhatkal Whole-time Director
7 Avanti Sankav Company Secretary

Subsidiaries and Associate Company

The Company has continued the process of expansion including acquiring operationally-efficient local gyms/fitness centers across India and abroad. The Company has following 7 subsidiaries

  1. Denovo Enterprises Private Limited with gym spread in northern and western region.
  2. Equinox Wellness Private Limited  with gym spread in Eastern India.
  3.  Aspire Fitness Private Limited with gym spread in Western India.
  4. Jyotsna Fitness Private Limited with gym spread in Western India
  5. Talwalkars Club Private Limited is a wholly-owned Subsidiary of the Company During the year the company acquired a controlling stake in following companies.
  6. Talwalkars Club Systems Private Limited is a wholly- owned Subsidiary of the Company, incorporated in March, 2016 to own, lease and manage recreational/ lifestyle clubs by providing all kinds of sports, games, recreational and hospitality facilities.
  7. Inshape Health and Fitnez Private Limited is a fitness centre service provider catering to the middle income and upper middle income group in Chennai.

Recent updates

Mergers and acquisitions
  • The company currently in the midst of undertaking significant capital expenditure towards the organic expansion of its fitness centres. The company in order to achieve better management and to have clear focus on business operations,  has decided to demerge gym business, thereby transferring gym business of Talwalkars Better Value Fitness to Talwalkars Lifestyles, in the interests of maximizing overall shareholder value.
  • The company is currently awaiting approvals from the Municipal Authority and is yet to commence construction for its club project. The proposed demerger is, however subject to final approval of lenders, creditors, other stakeholders and regulatory authorities
Other updates
  • Recently Talwalkars Better Value Fitness Limited has informed the Exchange regarding intimation of Mickey Mehta ups fitness quotient through strategic alliance with Talwalkars.
  • Fitness chain Talwalkars Better Value Fitness has announced plans to foray into South-East Asian countries through a tie-up with Snap Fitness Inc., one of the largest gym chains having operations in the U.S., Canada, Mexico, Australia, New Zealand, England, Egypt and India. As part of the expansion, Talwalkars will establish a wholly-owned subsidiary in Singapore to be the exclusive master franchise for Snap Fitness in Singapore, Malaysia, Vietnam, Thailand, Sri Lanka and Bangladesh.
  • On 16March-2017 Talwalkars, the health and fitness centre chain, has acquired 50 percent stake in Force Fitness.- Talwalkars, the health and fitness center chain, says the deal will cut the cost of setting up or acquiring a gym by 35-40 percent.
  • On 29March 2017 Talwalkars Better Value Fitness Limited, India’s largest fitness chain, has announced the opening of the 10 Zorba.

Mega Bailout Plan

Ayush Pathak,
B.Com,Financial Modeling,
Financial Analyst
S&P Hyderabad

There was a big announcement on October 25th about recapitalization of banks. Center announced a capital injection of Rs. 2.11 lakh crores. And with this news, I am motivated to write another blog on this describing why it is needed? Impacts of it, how it will work, etc..
So, let’s start with basic with a question,

What is capital injection?

Capital Injection is the supply of new money into the system (economy) or in a company or in an institution in the form of cash, equity or debt. This is generally done to make the financial condition of any sick company/companies better. Generally, capital injection is treated as the last option to make things better. It generally helps to unfreeze the credit instantly or fix the capital crunch problem. It may also have some bad impacts which are discussed later.
The last capital injection by a government into an economy, which I remember, is done by the US government in 2007-08 crises and they also treated this as very last option to unfreeze their credit system. Which now the US fed has started to unwind their balance sheet and reduce their debt.

Why Capital Injection in India? Are we in any crises?
The centre decided to do a bailout of Public Sector banks by injecting Rs. 2.11 lakh Crore or nearly 326 Billion USD, which is a huge amount, to treat the NPA problem of the Indian Banks.
Indian banks have nearly Rs. 8.29 lakh crores of NPAs and this is I think a severe threat to the Indian economy. Today, most banks are not able to lend further because of this huge NPA on their balance sheet. They are facing a problem of Capital Adequacy Ratio, which is defined as the percentage of bank’s capital to its risk-weighted assets like making a loan. According to Basel III, banks need to maintain the capital ratio of no less than 8%, but due to many defaults on the bank loans, the bank loses their capital and now the state came when banks are finding it difficult to maintain the minimum capital ratio and hence the credit seems to be frozen.
Let me tell you, in an economy, credit plays a very important role. Credit has an ability to create a modern economy and lack of credit can even destroy the economy. Credit helps shopkeepers to maintain their shelves, run their business and in many ways.
In India, we are facing a situation of lack of credit and the result of it can be seen in Indian GDP growth rate. From nearly 7-8% of growth we came down to 6-7% last year and then in the September quarter we grew by just 5.7%. Many say that demonetization and GST have pulled us down, but I think, it’s not only these two factors, we have a huge NPA problem as well which is pulling the growth down. And this needs to be dealt soon and in the best way possible. The government thinks Capital Injection is the best way to work.
I think, to handle a situation of dealing with a problem of NPAs, government and RBI should find some different way. As I first stated that capital injection should be the last option and this is mostly used at the time of crises. And I think we are not currently into a situation of “Crises”. So the answer to the question “Are we into Crises?” is “No, at least for now, we are not.”

How Government Plans to Do it?
To the best of my knowledge and understanding, the government has planned to buy Rs. 18000 Cr worth of shares through its budgetary allocation and then government issue bonds which might be called as ‘Banks Recapitalization Bonds’ for Rs 135000 Cr. which will further be used to buy more banks’ shares. So, in all government planned to inject 18000Cr. + 135000cr. that is 153000Cr. by itself.
The government bonds are yet not into a clear picture like how will they be issued, what will be the maturity? Or to whom they will be issued? Etc.. There is a belief that the bonds will be issued directly to the banks, so that banks can raise further capital from the market. Further capital is like 58000Cr Rs. which will sum up to total capital injection of 211000Cr Rs in the system.

What actually is done here?
This is actually a masterpiece idea of financial engineering. It is like, first, government give banks money and purchase their shares then Government Issue bonds which will certainly be bought by the banks. This means now banks give money to Government to buy more shares of banks. Banks will now have bonds of the government which can be used to issue new bonds in the market which has an underlying asset of government’s bonds.

Is it good to give Money to banks?
Well, we are giving money to someone whose sole job is to make money because it fails to make money. Perhaps, it doesn’t seem like a good idea but we are stuck in a jam. Indian banks seem frozen. So giving money to banks is like giving them a lifeline.
However, giving money to banks can only be fruitful if and only if, banks will book NPAs as their loss and clean out their balance sheet as soon as possible.
Banks have resisted themselves to clean their balance sheet till now because of the lack of capital they have. If they have booked losses earlier, they would have failed to maintain the minimum capital ratio requirement and therefore they have to call back their loans outstanding. Investors also would have lost trust in them and they would have also pulled their money out which further worsen their situation. But now as they are getting money from the government, they can book their losses and can clean up their balance sheet. It will not be any harm to the banks if they still resist or extend their loss booking as there is no such provision of it. However, the government can now force banks harder to book losses. So ultimately, it all depends on banks if the plan for government go successfully or not.

What Can Go Wrong?
I think, if banks do not book their loses and acted upon the capital injection which they were supposed to do, everything might go wrong. 2.11 lakh is not a small amount. It is a big capital injection and if this not used properly, it will result in hyperinflation problem.
I think, in India, there is always a huge demand for credit and if everyone starts getting it easily then it may cause a hyperinflation. We may say the greed of the bank may also increase and they go an extra mile to lend more. When the banks’ pockets are again full of money, they will lend it more and even to sub-prime customers and this may cause more default and increase in NPA.

What about the Bonds?
With the new capital injection of bonds, I seriously think that the yield of the fixed income securities will go up. With the capital injection, the short-term securities will be the first to react upon it and the yield on those will first increase. The long-term securities also will not remain unaffected. Even 10-year T-Bill of India will have its yield increased.
We will definitely be going to see some increase in inflation after the capital injection and which will increase the yield of every fixed income securities. We may soon find the RBI also increasing the rates to control the inflation. And now this could also lead to an end of low-interest rate cycle. There is also a potential threat to Indian fixed income securities as the yield of US T-Bill is also increasing. It reached near to 3%. This will further increase the yield of the Indian bonds.

What Problem the recapitalization bonds may cause?
The government bonds are issued to take a share into the banks. The government will have a certain percentage of ownership into the banks. When the government issues the bonds, it will certainly be bought by the banks and then the government will use that money to purchase shares of the banks. And with the help of the government bonds, banks will able to raise the further capital and issue more shares into the market.
Increase in the number of shares in the market will lead to lead to dilution in the EPS of the share. This means if you today have a share of a bank of EPS say 10Rs then after government’s purchase of the new shares it may come down to say 5Rs. So, the current holdings into the banks may get diluted with the increase in the share of government in the banks. The government is going to be an owner in the banks.

How Government describes this?
The government has a say in this as it will not be creating any problem and this is well planned financial structure. And hopefully, it should be well planned.
Previously, looking at the government’s figure about the disinvestments and all, the fiscal deficit target of 3.2% seems to be achievable. But with this new plan of government, I think this year, the fiscal deficit will going to increase. The government says it’s just shares in exchange for cash. The whole scene doesn’t look this. There are a lot of moving parts which have a lot of risks involved. The government has taken a huge risk by giving money to the banks. We may end up into hyperinflation, if not monitored properly. I think in near future the inflation is going to increase and fiscal deficit is going to widen up. This is an additional debt on the balance sheet of the government.

Well, I think that is pretty much about something which we can call “A mega-bailout”. I just recommend stay away from the long-term fixed income securities and expect inflation. Rates will be increased, yields will go up. So plan your investments accordingly as it may affect you as well.
Stay safe and keep learning.

What causes Inflation?

Ayush Pathak,
B.Com,Financial Modeling,
Financial Analyst
S&P Hyderabad

Commonly inflation is referred as rise in level of price in a particular period of time. The value of say 1 INR which can buy any particular good may not be able to buy the same quantity of good a year later. The Value of 1 INR is changed over a year time. This change in the value of currency of any country is called inflation.

Types of Inflation—
On a broader basis the inflation are of two types. They are as follows—

  • Demand- pull inflation—The demand pull inflation occurs when the demand of the commodities are rising rapidly than the supply of the commodities. This will let the price of the commodities go up and hence result in the demand- pull inflation.
  • Cost-push inflation—The cost push inflation occurs when the cost of production increases over time. When the cost of raw material increases the cost of production also increases and as a result the manufacturer has to increase the selling price to maintain the profit margins. This rise in the selling price is termed as the Cost- push inflation.

Another form of inflation are Hyperinflation and deflation—

The hyperinflation is the situation of inflation in which the rate of inflation goes out of control. For example the situation happened in Zimbabwe in 2008 when the inflation went over 1 billion percent but fortunately it last for a very few time.

The situation of hyperinflation mostly faced by the emerging economies and this situation leads to fail in monetary system of the country.

Deflation is the situation opposite to the hyperinflation. This type of scenario is also mostly faced by the emerging economies and in this situation the prices of the commodities fall uncontrollably. There can be many causes of deflation like increase in unemployment which leads of less expenditure by the people of the country that means less demand in the market for the goods leads to cut in labor cost with the decrease in the production which further worsen the situation of unemployment and this will turn down the tax collection by the government and the price of the goods and services keeps falling. The best example of the deflationary situation is the Great Depression of 1929 in US.

Both deflation and hyperinflation situation is difficult to control and may lead to abolish the monetary system of the country.

What Causes Inflation to change??

Inflation is majorly affected by the demand and supply of the goods and services. Other than demand and supply of the goods and services the inflation is also impacted by many other factors like change in monetary policies of the country, change in fiscal policies of the country, confidence of the investors on the local currencies, political little bit and many more.

The demand and supply of goods and services to affect the inflation is already been explained in Demand- pull inflation in which the rise in demand in comparison with the rise in supply will increase the inflation and vice-versa.

Another major cause of inflation to change is the change in the monetary policies of the country. A decrease in the lending rate will increase the supply of the currency in the market which means the INR will then be easily available to the borrowers at the lower cost. As a result more the money flow in the market the more will be the inflation. Whenever the availability of the currency increases it will straight away leads to increase in the inflation. On the other hand if the lending rates are increased that means now loans or money is available at higher cost of borrowing then the demand for the loans will reduce and this help to pull down the inflation.

Inflation also gets affected when the savings rate of term deposit rates are increased or decreased. When the term deposit rate is increased then it will attract many foreign investors to invest in the various securities of the country and this will strengthen the currency globally and hence reduce the inflation. The inflation may rise if the foreign investors pull out their money when the saving rates and the term deposit rates are reduced.

The confidence level of the various investors on the currency may also impact the inflation rate of the country. The confidence on the INR will make the investors to buy the INR and hold it which will make the INR strong globally. For the country like India which has a high imports a strong currency will help in reducing the cost of imports and will bring down the cost of goods and services which ultimately reduces the inflation. Therefore a strong and stable currency will attract the foreign investors to invest in India which increase the demand for the INR which in result helps in controlling the inflation.

Inflation can also be slightly affected by the fiscal policies of the nation. Increases in taxes will leaves with less money with the people and hence reduce their purchasing power of the buyers. This ultimately reduces the inflation on the other hand, taxes on customs and imports will increase the cost of imports/ this leads to the price hike of that goods and services.

Is Inflation necessary??

Many people say that inflation is the cause of price hike and this degrades the value of their investment of the period of time. So it’s better not to have inflation or to have a zero inflation country.

Well that’s not really true. Even world’s most developed nation USA also has an ideal inflation rate of 2% +/-1%. A minute inflation is necessary for every country. A minute inflation gives a cover from falling into the deflationary situation. So it’s better to have some rising price scenario then facing a difficult problem of deflation.