Research Scorecard. May 2016

Transcription

1 Research Scorecard May 2016

2 Key pillars of our equity proposition Intensive Research Dedicated team for fundamental, derivative and technical research Total 34 fundamental research analysts covering 215 companies across sectors Customised research solutions for investing or trading using cash, equities or derivatives Strong service platform Dedicated equity advisors to guide you on the markets Online and mobile platforms for trading and account tracking Online reporting systems for tracking transactions, profitability, securities position and cash movement Innovative & flexible products Offer innovative and unique products to cater to every client s need Provide flexibility in product and service features Execution Margins Liquidity Institutional & Corporate Services Institutional services offered to our HNI clients Block deals VWAP trading Compliance reporting and monitoring services for employee accounts 2

3 Research Philosophy 3

4 Stock selection basis Fundamentals Financials of the company Growth prospects of the industry and company Momentum Stock price movement vis-à-vis market and historical averages Transaction volume Quality of management Competitive landscape Valuations Stock price vis-à-vis: vis: Peers Earnings quality Intrinsic value Technicals Chart based parameters Moving average price Trend reversals Historical cycles Patterns 4

5 Research catering to client needs Fundamentals Momentum Technicals Long term Investing Medium term Investing Short term Trading Intra day Trading High Low Absent 5

6 Research basket Long term Investing Three to five years perspective Equity model portfolio Twelve to 15 month perspective Detailed company reports Others Top Picks, Muhurat Picks and Annual & Mid-Strategy Picks Medium term Three months perspective Investing Techno Funda picks, Gladiator stocks Short term Trading Intra day Trading Seven to 30 days perspective Monthly and Weekly Calls Technical & Derivatives Stocks on the Move, Positional Derivatives and Volatility Insight One to three days perspective Daily Calls Technical, Momentum and Derivatives Intra-day Calls BTST, Margin and Derivatives 6

7 Research Performance Long Term Investing 7

8 Detailed Company Coverage Overall Basket Coverage: 215 companies Target achieved: 150 companies (69.8% strike rate) 8

9 Nano Nivesh 19 companies under coverage Company Initiation price CMP Fair Value Return ( ) ( ) ( ) (%) Atul Auto* Siyaram Silk Mills 1, D-Link India Wim Plast Butterfly Gandhimathi Appliances # Camlin Fine Sciences * Accelya Kale Apcotex Industries* Sonata Software Mastek ** NM NM CCL Products EPC Industrie Gandhi Special Tubes Pitti Laminations* MPS Ltd Control Print* Sagar Cement Emmbi Industries Majesco *Stock price adjusted for bonus & splits; #Initiation price revised downwards in line with new target price; ** Fair value is for the combined entity while CMP reflects the share price of listed services business; 9

10 Nano Nivesh Company nitiation price CMP Fair Value Return (%) Comment Date of initiation Atul Auto s (AAL) volumes registered ~34% CAGR in FY09-15 outperforming the domestic 3- W segment that has grown at ~7% CAGR in the same period. Its new petrol product launch can tap export & urban markets in India, thereby, continuing its growth momentum. The Atul Auto* Government of Gujarat has increased VAT on motor vehicles sold to dealers by 5% that is 14-Sep-12 likely to face some challenges in the near term. However, the long term story remains intact. Thus, we value AAL at 18x FY18E EPS and arrive at a target price of 620 Siyaram Silk Mills The initiation fair value has been achieved. We have upgraded the fair value (that was also achieved). Considering that the company is tapping newer opportunities for growth and spending aggressively on the promotion of its brands, we remain optimistic on its future prospects. Some of its peers in the branded apparel space (with similar fundamentals) are 13-Dec trading at significantly high multiples. We maintain BUY rating with a revised target price of 1385 (based on 10x FY18E EPS of 138) D-Link India Wim Plast The government s vision of pan-india internet connectivity, acquisition of team F1 & the latest development on domestic STB manufacturing augur well for D-Link. It is available at throwaway valuations of 12.6x FY17E EPS owing to recent correction. We expect revenue, EBITDA and PAT growth of 12.3%, 50.5% 5% and 60.2% YoYY to crore, 50.6 crore and 33.7 crore by FY17E, respectively, and value the stock at 21x FY17E EPS of 9.5 to arrive at a target price of 200. We maintain BUY The stock has run up substantially in the past 12 months and is richly valued at this price. We believe WPL may face a challenge to improve the EBITDA margin to the historical level (~18%) due to the entry into new product lines and higher proportion of trading revenue in the topline. We maintain our SELL rating on the stock (valuing 21x FY17E earnings ~20% premium to its histroical trend) with a target price of 1620/share 20-Mar-13 2-Apr-13 * Stock price adjusted for share split, 10

11 Nano Nivesh Company nitiation price CMP Fair Value Return (%) Comment Date of initiation Butterfly Our initiation fair value has been achieved. Post coming out of BIFR, BGAL recorded healthy revenue growth led by capacity expansion, government orders, entry into new markets & Gandhimathi addition of new SKUs. BGAL is trading at a discount to its peers (TTK Prestige, Hawkins 3-Mar-14 Appliances # Cookers). We recommend HOLD rating with a revised target price of 180 (based on 14x FY18E EPS of 12.85) Camlin Fine Sciences * Our initiation fair value has been achieved. Consequently, we have upgraded our target price to 110, which has also been achieved. While the bottomline growth of ~13% CAGR in FY15-17E appears modest, CFS next growth phase would hinge on its success in the Diphenol downstream segment foray and entry into blends business (forward integration for TBHQ/BHA business). Thus, we believe capacity utilisation of the same is the key to any further rerating 17-Jun-14 Accelya Kale Apcotex Industries* Sonata Software Accelya Kale (AKL) is well positioned to capture the rising outsourcing opportunity in the airline IT space, helped by its global parent, the Accelya group. AKL s strong financial performance (21% PAT CAGR during FY10-15), healthy balance sheet metrics (zero debt, asset-light), attractive dividend payout and its unique value proposition make it an attractive investment story In Q3FY16, Apcotex acquired a 100% stake in Omnova Solutions India Pvt Ltd (OSIPL)' in an all-cash deal. The enterprise value of this transaction was 36 crore. The company plans to spend 40 crore on the planned acquisition. Anticipating synergies from this acquisition coupled with decent H2FY16 performance, led us to revise the target price to 330 from 230. The same was achieved on June 1, However, we recommend HOLD on the stock Sonata Software (SSL) restructured its operations in 2012 to focus on the services business, select verticals (travel, retail) and complex products (cloud). This led to an improved financial performance ( 134 crore PAT in FY15 vs. 3 crore loss in FY12), healthy balance sheet metric and attractive dividend payout (50%). We revise our target price to 200 (12x FY17E EPS) given improving fundamentals and healthy cash ( 220 crore) 30-Jun Jul Sep-14 # Initiation price revised downwards inline with new target price, * Stock price adjusted for share split, *Adjusted for bonus 11

12 Nano Nivesh Company nitiation price CMP Fair Value Return (%) Comment Date of initiation Mastek is now trading ex-insurance business (Majesco), which listed in India and is currently Mastek ** NM NM trading at 320. The Majesco US subsidiary, which got listed on the NYSE, currently trades at Mcap/sales metric of ~1.6x and implies market cap of $ 170 million. Potentially, 70% of this could be reflected in the Majesco India entity and 13% in Mastek India. Our fair value assumes 17-Sep-14 target multiple of 2.5x on Mcap/sales, given deeper market expertise & cross-selling opportunities while current Mcap of services business is at 400 crore. Together, this translates to a fair value of 600 CCL Products Led by higher sales from increasing capacity utilisation levels at the Vietnam facility and increased sales volumes in FY17E, we expect net sales to grow at 14.5% CAGR in FY16-18E. We have modelled a marginal dip in margins to 20.8% by FY18E due to a high base created in FY16 on the back of benign commodity costs. We believe tax benefits in Vietnam would aid in 8-Oct % CAGR in profitability in FY16-18E. We value the stock at 22x its FY18E EPS of 12 to arrive at a target price of 265/share. We maintain our BUY recommendation EPC Industrie EPC Industrie (EPC) is a micro-irrigation system (MIS) and component manufacturer based out of Maharashtra. EPC was acquired by M&M in FY11 and has been well capitalised over the years. On the back of the government s thrust on augmenting MIS reach and strong parentage (M&M), we have built in sales CAGR of 20.0% in FY16-18E. We expect the company 27-Nov-14 to clock ~380 bps margin improvement over FY16-18E, albeit on a lower base. We value EPC at 200, i.e. 25x P/E (0.5x PEG) on FY18E EPS of 8/share. We assign a BUY rating on EPC Gandhi Special Tube Gandhi Special Tubes (GST) is a leading manufacturer of small diameter seamless & welded steel tubes, which find application in automotive, hydraulics, refrigeration (condenser tubes). It would be a key beneficiary of revival of domestic capex cycle (MHCV including tractors). Thus, we expect sales & PAT to grow at a CAGR of 17.5% and 21.2%, respectively, in FY16-6-Jan-15 18E. It is a debt free company and also provides ~4% dividend yield. We value GST at 315, i.e. 17x P/E (0.8x PEG) on FY18E EPS & assign BUY rating Pitti Laminations* In FY16, profitability was adversely impacted on account of subdued scrap prices, deferral of export orders (GE group company's) and muted demand scenario domestically. However, we believe the worst is behind us. We expect sales (domestic + exports) to grow at a CAGR of 13.2% in FY16-18E. On the PAT front, we expect Pitti to report PAT of 9.4 crore in FY18E vs. loss of 9.6 crore FY16. We have valued Pitti at 35 i.e. 10x P/E on FY18E EPS and assign a HOLD rating to the stock 13-Mar-15 ** Fair value is f or the combined entity while CMP reflects the share price of listed services business; *Stock price adjust for stock split 12

13 Nano Nivesh Company nitiation price CMP Fair Value Return (%) Comment Date of initiationiti Control Print* Control Print (CPL) is a leading coding & marking player domestically with manufacturing capability in printing machines, spare parts & associated consumables (ink). It has strong return ratios with RoE at 20%. With robust demand drivers in place & increasing the application of coders and markers, CPL is on a strong footing with robust prospects, going 28-Dec-15 forward. We expect sales & PAT to grow at a CAGR of 18.3% & 21.8%, respectively, in FY16-18E. We value CPL at 400, i.e. 16x P/E on FY18E EPS with BUY rating on the stock MPS Ltd Sagar Cement Emmbi Industries Majesco *Adjusted for bonus MPS Ltd underwent a restructuring post its acquisition by Adi BPO in Overall, MPS has the building blocks in place and is poised to capture incremental opportunities in the publishing outsourcing space, by leveraging its vast service offerings, sticky client relationships and flawless execution. We value MPS at , i.e x FY17E EPS of 48.4, given healthy balance sheet metrics and high dividend payout (~75%) Sagar Cement's (SCL) key markets are on the verge of a turnaround led by creation of Telangana and political stability in Andhra Pradesh. Andhra Pradesh & Telangana are planning to invest heavily in infrastructure projects. SCL s cement plant is in close proximity to these infra projects. The EBITDA growth is expected to be driven by healthy realisation, synergy benifits with BMM and lower freight cost. Thus, we assign an EV/EBITDA multiple of 6.5x in FY18E, arriving at a target price of 600/share Emmbi Industries (Emmbi) is a technical textile unit manufacturing synthetic packaging, flexi water tanks & agri products. With increasing demand for specialised, quality FIBCs, the government s focus on water conservation & its focus on increasing the share of value added products, Emmbi is on a firm footing with robust prospects. We expect sales & PAT to grow at a CAGR of 18.2% & 31.5%, respectively, in FY16-18E. We value Emmbi at 145, i.e. 14x P/E on FY18E EPS & maintain BUY rating on the stock. Majesco, demerged entity of Mastek, underwent a reorganisation in We believe Majesco is poised to capture incremental opportunities in the core insurance outsourcing space, by leveraging its product offerings, sticky client relationships and first-rate execution. Majesco s revenue could grow at 25% CAGR in FY15-18E while PAT could grow at 128% CAGR during FY16-18E with average 9.2% EBITDA margins. We value Majesco at , i.e. at FY17E sales 24-Mar Dec Dec Mar-16 13

14 Equity Model Portfolio (rejigged on January 21, 2016) Large Cap Earlier Name of the company Weightage(%) Auto 14.0 Tata Motor DVR 4.0 Bosch 3.0 Maruti 4.0 EICHER Motors 3.0 BFSI 23.0 HDFC Bank 8.0 Axis Bank 3.0 HDFC 8.0 Bajaj Finance 4.0 Capital Goods 5.0 L & T 5.0 Cement 3.0 UltraTech Cement 3.0 FMCG/Consumer 14.0 ITC 7.0 United Spirits 2.0 Asian Paints 5.0 IT 21.0 Infosys TCS 8.0 Wipro 3.0 Media 2.0 Zee Entertainment 2.0 Metal 2.0 Tata Steel 2.0 Oil & Gas 4.0 Reliance Industries 4.0 Pharma 12.0 Lupin 5.0 Dr Reddys 4.0 Aurobindo Pharma 3.0 Total 100 Now Name of the company Weightage(%) Auto 14.0 Tata Motor DVR 4.0 Bosch 3.0 Maruti 4.0 EICHER Motors 3.0 BFSI 23.0 HDFC Bank 8.0 Axis Bank 3.0 HDFC 8.0 Bajaj Finance 4.0 Capital Goods 4.0 L&T Cement 3.0 UltraTech Cement 3.0 FMCG/Consumer 15.0 ITC 7.0 Marico 3.0 Asian Paints 5.0 IT 21.0 Infosys 10.0 TCS 8.0 Wipro 3.0 Media 2.0 Zee Entertainment 2.0 Oil & Gas 4.0 Reliance Industries 4.0 Pharma 14.0 Lupin 6.0 Dr Reddys 5.0 Aurobindo Pharma 3.0 Total

15 Equity Model Portfolio (rejigged on January 21, 2016) Midcap Earlier Name of the company Weightage(%) Aviation 6 Interglobe Aviation 6 Auto 6 Bharat Forge 6 BFSI 6 Bajaj Finserve 6 Capital Goods 6 Bharat Electronics 6 Cement 6 Ramco Cement 6 Consumer 24 Symphony 6 Supreme Ind 6 Kansai Nerolac 6 Pidilite 6 FMCG 8 Nestle 8 Infrastructure 8 NBCC 8 Oil & Gas 6 Castrol 6 Logistics 6 Container Corporation of India 6 Pharma 12 Natco Pharma 6 Torrent Pharma 6 Textile 6 Arvind 6 Total 100 Now Name of the company Weightage(%) Aviation 6 Interglobe Aviation 6 Auto 6 Bharat Forge 6 BFSI 6 Bajaj Finserve 6 Capital Goods 6 Bharat Electronics 6 Cement 6 Ramco Cement 6 Consumer 30 Symphony 6 Supreme Ind 6 Kansai Nerolac 6 Pidilite 6 Rallis 6 FMCG 8 Nestle 8 Infrastructure 8 NBCC 8 Logistics 6 Container Corporation of India 6 Pharma 12 Natco Pharma 6 Torrent Pharma 6 Textile 6 Arvind 6 Total

16 Equity Model Portfolio (rejigged on January 21, 2016) Diversified (1/2) Earlier Now Name of the company Weightage(%) Auto 12 Tata Motor DVR 3 Bosch 2 Maruti 3 Eicher Motors 2 Bharat Forge 2 Consumer Discretionary 16 Symphony 2 Supreme Ind 2 Kansai Nerolac 2 Pidilite 2 United Spirits 1 Asian Paints 4 Arvind 2 Interglobe Aviation 2 BFSI 18 HDFC Bank 6 Axis Bank 2 HDFC 6 Bajaj Finance 3 Bajaj Finserve 2 Power, Infrastructure & Cement 13 L & T 4 UltraTech Cement 2 Ramco Cement 2 NBCC 2 Bharat Electronics 2 Container Corporation of India 2 Name of the company Weightage(%) Auto 12 Tata Motor DVR 3 Bosch 2 Maruti 3 Eicher Motors 2 Bharat Forge 2 Consumer Discretionary 16 Symphony 2 Supreme Ind 2 Kansai Nerolac 2 Pidilite 2 Asian Paints 4 Arvind 2 Interglobe Aviation 2 Rallis 2 BFSI 18 HDFC Bank 6 Axis Bank 2 HDFC 6 Bajaj Finance 3 Bajaj Finserve 2 Power, Infrastructure & Cement 13 L & T 3 UltraTech Cement 2 Ramco Cement 2 NBCC 2 Bharat Electronics 2 Container Corporation of India 2 # Indicative i diversified ifi d portfolio has 70% weightage to large cap and 30% to midcap 16

17 Equity Model Portfolio (rejigged on January 21, 2016) Diversified (2/2) Earlier Now Name of the company Weightage(%) FMCG 7 ITC 5 Nestle 2 Metals & Mining 1 Tata Steel 1 Oil and Gas 5 Reliance Industries 3 Castrol 2 Pharma 12 Lupin 4 Dr Reddys 3 Aurobindo Pharma 2 Natco Pharma 2 Torrent Pharma 2 IT 15 Infosys 7 TCS 6 Wipro 2 Media 1 Zee Entertainment 1 Total 100 Name of the company Weightage(%) FMCG 9 ITC 5 Nestle 2 Marico 2 Oil and Gas 3 Reliance Industries 3 Pharma 13 Lupin 4 Dr Reddys 4 Aurobindo Pharma 2 Natco Pharma 2 Torrent Pharma 2 IT 15 Infosys 7 TCS 6 Wipro 2 Media 1 Zee Entertainment 1 Total 100 # Indicative diversified portfolio has 70% weightage to large cap and 30% to midcap 17

18 Equity Model Portfolio Performance (return since inception) # All three portfolios continue to outperform their respective benchmark indices, indicating that our picks have been more consistent and stable vis-à-vis their respective indices on an average % Large Cap Midcap Diversified Portfolio Benchmark As on May 31, 2016 # includes the dividend yield 18

19 SIP in Model Portfolio Value as on May 31, ,500,000, 7,500,000 6,500,000 5,500,000 4,500,000 6,000,000 7,15 59,424,473 6,476, 6,000, ,783 7, 6,354, ,000,000,922,440 7,901, ,500,000 Largecap Midcap Divesified Investment Value of Investment in Portfolio Value if invested in Benchmark SIPs in all three portfolios (large cap, midcap and diversified portfolio) continue to outperform their SIPs in the respective index Assuming 1,00,000 invested as SIP at the end of every month Start date of SIP is June 30,

20 I-direct Top Picks Fundamental (Monthly) Recommended on June 5, 2015 What s in : Hero MotoCorp and Nestlé India What s out : Sun Pharmaceuticals (Exit) and Accelya Kale (booked profit) Company Recommended Price CMP Market Cap P/E (x) RoE ( ) ( ) ( crore) (FY18E) (%) ITC Symphony Ltd 2, Jet Airways NA Concor 1, Voltas Timken India Hero Motocorp 3, Nestle India 6,

21 Muhurat Picks Recommended in October, 2015 Recommended on October 29, 2015 Name of the company Market Cap ( crore) Reco price Exit price / CMP Return (%) Statust ITC Open Bajaj Finance Book Profit Blue Dart Open Kajaria Book Profit Syngene Open Symphony Book Profit PNC Infratech Book Profit 21

22 Yearly Strategy picks Fundamental Recommended on December 24, 2015 Scrip Name Reco Price Exit price/cmp Return (%) Target Status Ashoka Buildcon Exit Bajaj Finserv Open Greaves Cotton Open Jet Airways Open Jagran Prakashan Open Mahindra & Mahindra Open Somany Ceramics Book Profit VA Tech Wabag Open 22

23 Yearly Technical picks Technical Recommendations 2016 Rec. Date Stock Recommended Rec Price Target Stoploss % Profit/Loss Comment 14-Dec-15 Triveni Booked profit at Dec-15 TNPL Booked profit at Dec-15 SJVN Booked profit at Dec-15 Ramco Cement Booked profit at Dec-15 EIHotel Open 11-Dec-15 Sonata Software Square off position at Dec-15 Tata Motors Square off position at Dec-15 Ipca Labs Square off positions at Dec-15 ITC Booked 50% profit at 353 Recommendations: 9 Open: 1 Exit above cost: 0 Strike Rate: 63% Average return on positive calls: 26% Average return on negative calls: -16% 23

24 Research Performance Medium Term Investing 24

25 Techno Funda picks As on Date Performance Recommendations: 71 Open: 0 Strike Rate: 82% Average return on positive calls: 18.0% Average return on negative calls: -8.3% 25

26 Gladiator Stocks Performance till date Recommendations : 71 Open: 3 Exit at cost : 0 Strike Rate: 71% Average return on positive calls : 21% Average return on negative calls :-7.0% 26

27 Research Performance Short Term Trading 27

28 Stock on the Move Year till date Recommendations : 33 Open: 3 Exit at cost: 0 Strike Rate: 87% Average return on positive calls : 12% Average return on negative calls :-2.5% 28

29 Monthly Technical Sectoral May Performance Recommendations : 6 Open : 1 Exit at Cost: 0 Strike rate: 100% Average return on positive calls: 10% Average return on negative calls : 0% Performance (FY ) Recommendations : 10 Open : 1 Exit at cost: 0 Strike rate: 100% Average return on positive calls : 10% Average return on negative calls : 0% 29

30 Monthly Call May Performance Recommendations : 2 No Trade: 1 Open: 0 Strike Rate: 100% Average return on positive calls : 20% Average return on negative calls : 0% Performance (FY ) Recommendations : 5 No Trade: 2 Open: 0 Strike Rate: 100% Average return on positive calls : 13% Average return on negative calls : 0% 30

31 Weekly Call May Performance Recommendations: 7 No Trade: 1 Exit at cost : 1 Open : 0 Strike Rate: 80% Average return on positive calls : 5.0% Average return on negative calls : -5.0% Performance (FY ) Recommendations : 14 No Trade: 4 Exit at cost: 1 Open : 0 Strike rate: 67% Average return on positive calls : 4.5% Average return on negative calls : -3.0% 31

32 Weekly Technical Calls May Performance Recommendations : 3 Open: 1 Strike Rate: 50% Average return on positive calls : 2.0% Average return on negative calls : -3.5% Performance (FY ) Recommendations : 5 Open: 1 Exit at cost: 0 Strike Rate: 75% Average return on positive calls : 7.0% Average return on negative calls : -3.5% 32

33 Monthly Derivatives May Performance Recommendations: 4 Profits booked : 3 Open : 1 Strike Rate: 100% Average Return on calls: 6.5% Average profit per call : Performance (FY17) Recommendations: 8 Positive payoff : 7 Strike Rate: 100% Average Return on calls: 8% Average profit per call:

34 Quant Pick May Performance No. of Calls : 8 Positive payoff: 3 Open : 4 Strike rate: 75% Average return on positive calls: 7.5% Average return on negative calls: 9.3% Performance (FY17) Number of Calls recommended: 14 Positive payoff: 6 Open : 7 Exit in loss : 1 Strike rate: 86% Average return on calls: 5% 34

35 Volatility Insights May Performance No. of Calls : 5 Profits Booked : 2 Exit in loss : 3 Strike rate : 40% Average return on positive Calls : 4588 Average return on negative Calls : Performance (FY17) Number of strategies recommended: 10 Positive payoff: 4 Exit in loss : 6 Strike rate: 40% Average return on positive Calls : 4719 Average return on negative Calls :

36 Global Derivatives May Performance No. of Strategies: 4 Positive payoff : 2 Strike rate : 50% Average net premium captured : 25% Performance (FY17) Number of strategies recommended: 8 Positive payoff: 4 Strike rate: 50% Average net premium captured : 27% 36

37 Alpha Trader May Performance No. of Strategies: 3 Profits booked : 3 Strike rate : 100% Average profit per call : 5184 Performance (FY17) Number of strategies recommended: 5 Positive payoff: 5 Strike rate: 100% Average return on calls :

38 Weekly Derivative Calls May Performance Number of strategies recommended: 3 Positive payoff : 2 Open : 1 Strike rate: 100% Average returns on calls: 5350 Performance (FY17) Number of strategies recommended: 7 Positive payoff: 5 Exit in loss/stop loss Triggered: 1 Not Initiated : 1 Strike rate: 83% Net profit: Average profit on per call:

39 Positional Nifty strategies Performance (FY17) Recommendations: 5 Positive Payoffs : 3 Strike Rate: 60% Average points captured per call: 65 39

40 Currency Derivatives May Performance Recommendations: 42 Strike Rate: 79% Performance (FY17) Recommendations: 76 Strike Rate: 75% 40

41 Research Performance Intra Day Trading 41

42 Trading Calls May Performance Strike rate of 73% Trading Derivatives/Margin Calls Total calls 435 Positive Payoff 314 Open 2 Strike rate 73% 42

43 Disclaimer ANALYST CERTIFICATION We /I, Pankaj Pandey, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. Terms & conditions and other disclosures: ICICI Securities Limited is a Sebi registered Research Analyst having registration no. INH ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities is a wholly-owned owned subsidiary of ICICI Bank which is India s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. ( associates ), the details in respect of which are available on ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities. While we would endeavour to update the information herein on a reasonable basis, ICICI Securities is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances. This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice. ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months. 43

44 Disclaimer ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction. ICICI Securities or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the companies mentioned in the report in the past twelve months. ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation p of the research report. Accordingly, gy, neither ICICI Securities nor Research Analysts have any material conflict of interest at the time of publication of this report. It is confirmed that Pankaj Pandey, Research Analyst of this report has not received any compensation from the companies mentioned in the report in the preceding twelve months. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. ICICI Securities or its subsidiaries collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report. Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in this report. It is confirmed that Pankaj Pandey, Research Analyst do not serve as an officer, director or employee of the companies mentioned in the report. ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report. We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI CC Securities es and affiliates ates to any registration or licensing requirement e e within such jurisdiction. The securities es described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. 44

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