NIIT Technologies Limited BuyBack Note

Investment Norms: INR 10 Lakhs (Model Corpus) Maximum Stocks Open: 10 Target Investment Horizon: 6 Months Occasional hedging by buying options or shorting index futures. Investment rationale on every idea is provided. 10% in a particular Stock and 30% (max) in a Sector. Cash holding based on market direction call. Cash to be deployed in case of sharp market fall. Cash holding to earn notional interest income of 4% p.a. STOCKS RATIONALE NBCCCMP 53 TGT 77 NBCC is a big beneficiary of Infrastructure and housing for all (affordable housing) thrust by government in concurrence with improving rural and semi-urban economy. Its standing order book has swollen above INR 80,000 crore at an healthy annual run rate. For FY19 so far it has received INR 6,000 crore, worth of orders. In FY18 it registered a top line of around INR 7100 crore, net profit of INR 372 crore & cash profit of around INR 550 crore. Book to bill ratio stands at 11.5x and order book to sales at 8.5x which gives revenue visibility for next 10 years at constant top line based on FY18. It is insulated largely from rising input costs as primary business is Project Management Consultancy (PMC) driven by asset light business model. PMC contributes around 90% to top line & almost 100% to bottom after covering costs of other business forays. It has recently forayed into Real Estate with an eye on affordable housing, housing re-development projects and building of new townships. Strong financials and steady cash flow is an added advantage. Cash per share in books as of FY18 stands at Rs. 13.75. Topline CAGR stands at 15% and PAT at 10% for last five years. We expect execution to pick up steam on existing order book, delivering earnings CAGR of over 20% in next two years; which translates into an EPS of Rs.3.88 for FY20e. The stock is currently trading at a PER of 13.66x based on EPS estimate for FY20e. Rock solid debt free balance sheet, proven execution capability, return ratios in high teens, makes it a compelling buy in light of steep stock price correction. Valuing the company at a PER of 20x based on FY20e, per share price comes at INR 77.60, leaving a scope of 45% potential upside from current levels. We recommend accumulating NBCC. About the Company: NBCC is into Project Management Consultancy (PMC), Engineering Procurement & Construction (EPC) and Real Estate (RE). PMC being is chief revenue contributor. Company's PMC business segment includes management and consultancy services for a range of Civil Construction Projects including Residential and Commercial Complexes, Re-development of Colonies, Hospitals, Educational Institutions, Infrastructure Works for Security Personnel, Border Fencing as well as Infrastructure Projects such as Roads, Water Supply Systems, Storm Water Drainage Systems, Water Storage Solutions and Solid Waste Management Schemes at different towns all over India. Majorly orders comes from various ministries of Central & State Governments. Some of the mega projects done by NBCC are World Trade Centre at New Delhi and International Exhibition-cumConvention Centre at Pragati Maidan. Disclaimer: This document is STRICTLY for authorised recipients only and is prepared for information purposes only. The information provided herein, we believe, is from reliable sources. IndiaNivesh is not liable for the accuracy of the source data as well as the results of the calculations based on the same. We do not claim that the data provided herein is accurate and complete in all respects. This is not an offer or solicitation of any offer to buy or sell securities. No action is intended to be taken by the recipients based on this document. The recipients may take their decisions based on their own judgement and independent advice that they may receive before making any investment or disinvestment decisions. The recipients are advised not to take any decision only on the basis of this document. No portion of this document should be printed, reprinted, redistributed, reproduced, duplicated or sold. Disclaimer: This document has been prepared by IndiaNivesh Securities Limited (“INSL”), for use by the recipient as information only and is not for circulation or public distribution. INSL includes subsidiaries, group and associate companies, promoters, employees and affiliates. INSL researches, aggregates and faithfully reproduces information available in public domain and other sources, considered to be reliable and makes them available for the recipient, though its accuracy or completeness has not been verified by INSL independently and cannot be guaranteed. The third party research material included in this document does not represent the views of INSL and/or its officers, employees and the recipient must exercise independent judgement with regard to such content. This document has been published in accordance with the provisions of Regulation 18 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is not to be altered, transmitted, reproduced, copied, redistributed, uploaded or published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from INSL. This document is solely for information purpose and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. INSL does not take responsibility thereof. The research analysts of INSL have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is based on technical and derivative analysis center on studying charts of a stock’s price movement, outstanding positions and trading volume, as opposed to focusing on a company’s fundamentals and, as such, may not match with a report on a company’s fundamentals. Nothing in this document constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances. INSL does not accept any responsibility or whatever nature for the information, assurances, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this document only. The opinions are subject to change without any notice. INSL directors/employees and its clients may have holdings in the stocks mentioned in the document.This report is based / focused on fundamentals of the Company and forward-looking statements as such, may not match with a report on a company’s technical analysis reportEach of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report: Dharmesh KantFollowing table contains the disclosure of interest in order to adhere to utmost transparency in the matter: INSL, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. INSL reserves the right to make modifications and alternations to this statement, as may be required, from time to time.Research Analyst has not served as an officer, director or employee of Subject CompanyOne year Price history of the daily closing price of the securities covered in this note is available at www.nseindia.com and www.economictimes.indiatimes.com/markets/stocks/stock-quotes. (Choose name of company in the list browse companies and select 1 year in icon YTD in the price chart))

Monetary Policy: RBI surprises the market; keeps policy rate unchanged at 5.15%RBI TAKES A PAUSE, KEEPS REPO RATE UNCHANGED; AND MAINTAINS MONETARY POLICY STANCE “ACCOMMODATIVE”. GDP GROWTH ESTIMATES FOR FY20 HAVE BEEN SLASHED SHARPLY TO 5.0% FROM 6.1% IN OCT’19  RBI’s monetary policy committee (MPC) left the repo rate unchanged at 5.15%. All members voted in favour of keeping rates unchanged. This was the first pause after five consecutive rate cuts this year (135 bps reduction from Feb to Oct’19) as it expects the past monetary easing and measures taken by the government to gradually help in the economic revival. The MPC also decided to continue with its “accommodative” stance as long as it is necessary to revive economic growth, while ensuring that CPI inflation remains within the target. The MPC recognized that there is space for rate cuts in the future, but given the evolving growth-inflation dynamics, it decided to take a pause at this juncture and maintained that it is prudent to carefully monitor incoming data to gain clarity on the inflation outlook. Inflation has increased sharply in the last two months and may stay high for some time. However, core inflation is expected to remain below 4% as per RBI estimates. The MPC was of the view that the forthcoming union budget will provide better insight into further measures to be undertaken by the government and their impact on growth.The key highlights of the policy:  CPI inflation projection has been revised upwards to 5.1–4.7% for the second H2FY20 and 4.0–3.8 % for H1FY21, with risks broadly balanced. Real GDP growth for FY20 is revised downwards from 6.1% in the October policy to 5%, with a delay in demand revival being the key downside risk to the GDP. Real GDP growth in Q2 was weighed down by a sharp slowdown in gross fixed capital formation (GFCF), cushioned by a jump in government final consumption expenditure (GFCE). Excluding GFCE, GDP growth would have been at 3.1% as per RBI’s assessment. RBI expects stronger monetary policy rate transmission under its external benchmarking regime, which was introduced from October 1.View: RBI’s decision to not lower interest rate has come as a surprise and hereon the emphasis will be on transmission of earlier rate cuts. In the growth-inflation tradeoff, the RBI has clearly leaned towards keeping inflation in check. Revisedprojections of GDP and CPI inflation seem to be realistic. Bond markets had already factored in a rate cut and the yield on the 10-year government bond surged by ~12 basis points to hit 6.58% (one month high) after the monetary policy announcement. Investors in short & medium duration funds should continue to hold till the cycle of rate reduction is complete. We recommend investment in high-quality AAA oriented short-term and banking & PSU debt funds. Fresh investments in short to medium term is recommended with a 1-to-3 year investment horizon. Disclaimer: This document is STRICTLY for authorized recipients only and is prepared for information purposes only. The information provided herein, we believe, is from reliable sources. IndiaNivesh is not liable for the accuracy of the source data as well as the results of the calculations based on the same. We do not claim that the data provided herein is accurate and complete in all respects. This is not an offer or solicitation of any offer to buy or sell securities. No action is intended to be taken by the recipients based on this document. The recipients may take their decisions based on their own judgement and independent advice that they may receive before making any investment or disinvestment decisions. The recipients are advised not to take any decision only on the basis of this document. No portion of this document should be printed, reprinted, redistributed, reproduced, duplicated or sold)