MOSL: Morning India (20/December/17)-1. Indraprastha Gas; 2. Teamlease Services; 3. Automobiles; 4. Aviation Monthly

​MOrning India (20/December/17): 1. Indraprastha Gas; 2. Teamlease Services; 3. Automobiles; 4. Aviation Monthly

Today’s top research idea

Teamlease Services: More ups than down; Valuation support vectors surmount risks; reiterate Buy

• In the backdrop of a limited listed history, lack of comparables to take cues from and the yet-developing understanding of underlying business dynamics, we add context and perspective to existing valuation metrics by analyzing PEG ratios, adjusting EV/EBITDA for growth, inverting the reporting by the ignoring pass-through component, cash generation and possibilities around capital allocation.
  
• The exercise leads us to believe that an extension of the time horizon coupled with a natural evolution of the business make a case for significant valuation triggers from current levels – in line with the benefits of a long-term growth story unfolding. On the downside, if current tax benefits are withdrawn, in our view, the impact on our fair value computation would be INR225 per share; insignificant compared to upside triggers.
  

Piping hot news

Reliance Jio among 5 telecom firms that under-reported revenue: CAG

• The Comptroller and Auditor General of India (CAG), in a report released on Tuesday, said non-compliance with licence conditions by five telecom operators led to a shortfall in payment of revenue share to the government to the tune of Rs2,578.83 crore.