Natco Pharma (NATPHA) 961

Transcription

1 Company Update Rating matrix Rating : Hold Target : 14 Target Period : 12 months Potential Upside : 8% What s Changed? Target Changed from 8 to 14 EPS FY15E Changed from 35.6 to 37.9 EPS FY16E Changed from 41.3 to 48.1 Rating Unchanged Quarterly Performance Q4FY14 Q4FY13 YoY (%) Q3FY14 QoQ (%) Revenue EBITDA EBITDA (%) bps bps Net Profit Key Financials ( crore) FY13 FY14E FY15E FY16E Revenues EBITDA Net Profit EPS ( ) Valuation summary FY13 FY14E FY15E FY16E PE (x) Target PE(x) EV to EBITDA (x) Price to book (x) RoNW (%) RoCE (%) Stock data Particular Amount Market Capitalisation 3178 crore Debt (FY14E) 244 crore Cash (FY14E) 11 crore EV 3411 crore 52 week H/L 878/442 Equity capital 33.8 crore Face value 1 Price performance (%) 1M 3M 6M 1Y Natco Pharma Unichem Labs Indoco Remedies Analyst Siddhant Khandekar siddhant.khandekar@icicisecurities.com Krishna Kiran Konduri krishna.konduri@icicisecurities.com All eyes on Copaxone launch June 18, 214 Natco Pharma (NATPHA) 961 Revenues witnessed marginal growth of 1% to crore, lower than I-direct estimate of 198 crore mainly due to 35% de-growth in the API business to 39.6 crore EBITDA margins declined ~2 bps to 2.3%, far lower than I-direct estimates of 25% mainly due to year-end provisions. EBITDA in absolute terms increased 9% to 37.3 crore (I-direct expectation: 49.5 crore) Net profit increased 112% to 24 crore (I-direct expectation: 29.8 crore) mainly due to forex gain of 1 crore, which was added in other income Focused approach to take on biggies in the US generics space Despite being a late entrant in the US market, it has carved out its own identity via tie-ups to tap a limited but niche products pipeline including five Para IVs and two limited competition products. Natco had earlier tried to pursue the route of retail pharmacies as a gateway for entry into the US market. Later on, it revisited the strategy and sold two pharmacies and currently owns and operates a single store. As per the revised and more feasible game plan, it plans to market products via tie-ups with established players in the generic space. We believe this is a bold step to make inroads in the Big Brother club. Till date, the company has filed 29 ANDAs, which includes FTF opportunities such as 1) Lenalidomide Capsules (anticancer), 2) Lanthanum Carbonate chewable tablets (hyperphosphatemia), 3) Oseltamavir Phosphate Capsules (antiinfectives), 4) Lapatinib Ditosylate tablets (anti-cancer). Besides these, it has also filed ANDAs for limited competition products such as 1) Glatiramer Acetate injection (multiple sclerosis) 2) Lansoprazole (antiulcerant; launched post approval) and 3) Budesonide (Crohn s disease). To market these products in the US market, Natco has signed agreements with MNCs as well as domestic players. Leading oncology player in domestic market Natco is a leading player in the domestic oncology segment with a product basket of ~18 products. Despite the product range, the growth has been flattish in this space as most sales are through institutional channels. The recent judgment for compulsory licensing can be considered a new avenue for more potential launches. Future bodes well due to niche fillings; maintain HOLD For our valuation purpose, we have opted for the SoTP methodology. We have valued the base business separately and assigned an NPV for some of the future launches as the FTF/Para IV status to some of them warrants future pipeline recognition. Similarly, we have calculated gcopaxone (Glatiramer Acetate) separately considering the likelihood of its launch anytime between now and September 215, post the approval from the USFDA. This is a unique case as the court verdict, to determine the validity of the patent which is due after of October, will also have a bearing on the valuation. Considering three scenarios of launches, we have assigned probabilities to each scenario to arrive at the valuation. Going by the company and Mylan s own assertion, we have assigned 75% probability of at risk launch by Mylan, anytime soon. Our target price of 14 includes base business value of 626 (13x FY16E EPS of 48.1) + 71 for NPV of other FTF/Para IVs for gcopaxone at 75% at risk launch probability. ICICI Securities Ltd Retail Equity Research

2 Variance analysis Q4FY14 Q4FY14E Q4FY13 Q3FY14 YoY (%) QoQ (%) Comments Revenue The lower-than-expected growth was on the back of 35% de-growth in the API business. However, export formulations witnessed robust growth of 11% to 51.7 crore Raw Material Expenses Employee Expenses Other Expenditure Total Operating Expenditure EBITDA The dip in margins was mainly due to year-end provisions EBITDA (%) bps -624 bps Interest Depreciation Other Income Includes forex gains of ~ 1 crore EO PBT Tax PAT before MI MI LP LP Net Profit Strong growth was on the back of forex gains Key Metrics APIs Domestic Oncology New product launches drove the growth Export Formulations Healthy growth in Lansoprazole led to growth in the export formulations business US Retail & Brazil Other Formulations Change in estimates FY15E FY16E ( Crore) Old New % Change Old New % Change Comments Revenue , We have increased revenues considering the management indication of Lansoprazole OTC launch in H2FY15. We expect the company to launch generic Glivec in the EU market and Doxil in the US market EBITDA EBITDA Margin (%) bps bps PAT EPS ( ) Assumptions Current Earlier Comments FY13 FY14E FY15E FY16E FY14E FY15E APIs Higher captive consumptions will limit API exports Dometic Oncology Exports formulations We have increased export sales in anticipation of the launch of Lansoprazole OTC in H2FY15. We also expect the company to launch gglivec in the EU market and gdoxil in the US market in FY16 US Retail Other Formulations ICICI Securities Ltd Retail Equity Research Page 2

3 Company Analysis Natco Pharma is a mid-sized pharmaceutical company with a presence across the pharma value chain. The company also has a retail business in the US. It owns six manufacturing facilities including four formulation facilities and two API facilities. The company s overall revenues grew at a CAGR of 1.5% in FY9-14. Natco is a leading domestic player in the oncology space. The company derives ~35-4% of sales from the oncology business (both APIs and formulations). NPL s product pipeline consists of drugs that are used for various types of cancer like blood cancer, breast cancer, brain cancer, ovarian cancer, lung cancer and prostate cancer. Currently, Natco is marketing ~18 products in the Indian market. On the export front, Natco exports products to the US, Canada and Europe regions. Despite being a late entrant in the US market, it has carved out its own identity via tie-ups to tap limited but niche products pipeline including five Para IVs and two limited competition products. The products, which have first to file status are Lenalidomide Capsules, Oseltamivir Phosphate capsules, Lanthanum Carbonate chewable tablets, Lapatinib Ditosylate tablets and Bendamustine Hydrochloride powder. The other limited competition products are Glatiramer Acetate Injection (Para IV) and Budesonide. Natco had earlier tried to pursue the route of retail pharmacies as a gateway for entry into the US market. Later on, it revisited the strategy and sold two pharmacies. Currently, the company owns and operates a single store. As per the revised and more feasible game plan, it plans to market products via tie-ups with established players in the generic space. Overall, we expect base business revenues to grow at a CAGR of 17.5% in FY14-16E to 12 crore. Exhibit 1: Revenues to grow at CAGR of 17.5% in FY14-16E ( crore) FY9 FY1 FY11 FY12 FY13 FY14E FY15E FY16E Revenues ICICI Securities Ltd Retail Equity Research Page 3

4 Exhibit 2: Domestic oncology business to grow at 15% CAGR in FY14-16E ( crore) FY9 FY1 FY11 FY12 FY13 FY14E FY15E FY16E Domestic Oncology Exhibit 3: New product launches expected to drive growth ( crore) FY9 FY1 FY11 FY12 FY13 FY14E FY15E FY16E Export Formulations Exhibit 4: EBITDA margins to improve on high margin products ( crore) FY9 FY1 FY11 FY12 FY13 FY14E FY15E FY16E EBITDA EBITDA Margins (%) Exhibit 5: Net profit to grow at CAGR of 25.8% in FY14-16E ( crore) FY9 FY1 FY11 FY12 FY13 FY14E FY15E FY16E Net Profit Lenalidomide Capsules Natco is the only first filer for the generic version of Celgene s Revlimid capsules. The annual sales of Revlimid in the US market are ~US$2. billion. The company has tied up with Watson Pharmaceuticals (now Actavis) to market the product in the US market. Revlimid is a blood cancer drug for treatment of patients with multiple myeloma. In the US and other select international markets, it has also got approval for the treatment of transfusion-dependent anaemia due to myelodysplastic syndromes (MDS). The drug obtained orphan drug status for the treatment of multiple myeloma and MDS in the US. The patent expiry of Revlimid will take place on July 24, 216. Considering the fact that Revlimid is distributed through the Rev-Assist Programme, we do not expect the company to launch the drug at-risk. We expect the company to launch the generic with 18 days exclusivity after patent expiry i.e. August 216. For our NPV calculation, we have assumed 5% price erosion during the exclusivity period and 9% price erosion during post exclusivity. We have assumed market share of ~4% and ~3% during the pre and post exclusivity period, respectively. For our base scenario, we have considered 25% probability of the launch and arrived at a present value of ~ 13 crore or ~ 39 per share. ICICI Securities Ltd Retail Equity Research Page 4

5 Lanthanum Carbonate Chewable tablets NPL has filed an ANDA with Para IV certification with the USFDA for Lanthanum Carbonate chewable tablets in October 28. The company is one of the four first filers on the drug. The drug is the generic version of Shire Plc s Fosrenol chewable tablets. Besides Natco, Barr, Mylan and Alkem Laboratories were the other companies sued by Shire Plc. The patents will expire in March 19, 216. Lanthanum carbonate is used as a phosphate binder. The drug is prescribed for the treatment of hyperphosphatemia, primarily in patients with chronic kidney diseases. The annual sales of Fosrenol chewable tablets in the US market are around US$1 million. Natco has tied up with Lupin for the product. For our calculation, we have assumed a price erosion of 6% for the first year of launch, 6% from the second year onwards and 4% and 2% market share in the first and second year of launch, respectively. We are assigning 25% probability of the launch and have arrived at a present value of the drug at 12.4 crore or 3.8 per share. Oseltamivir phosphate capsules Natco Pharma has filed ANDA with Paragraph IV certificate for Oseltamivir Phosphate Capsules. Natco is the first filer for the drug. Oseltamivir Phosphate capsules are generic versions of Tamiflu capsules, marketed by Roche Holding and innovated by Gilead Sciences. Oseltamivir Phosphate is used in the treatment of bird and swine-flu infections. In normal circumstances, annual sales of the drug in the US market are around US$4 million. The company has received tentative approval before 3 months of stay from the USFDA for the drug and is entitled to get 18 days exclusivity. The patent of Tamiflu capsules is set to expire on August 27, 215. The company tied up with Luxemburg based Alvogen for marketing and sales of Oseltamivir Phosphate in the US market. For our projections, we have assumed 5% price erosion in the exclusivity period and 8% in the post exclusivity period, obtaining 4% market share during exclusivity and 2% market share post exclusivity. In conjunction with 5% probability of launch, we have arrived at a present value of the drug at 61.7 crore or 18.3 per share. Lapatnib distosylate tablets Natco Pharma has filed ANDA with Paragraph IV certification with USFDA for the approval of Lapatnib ditosylate tablets. The drug is the generic version of GlaxoSmithKline s Tykerb tablets, which are used for the treatment of breast cancer. Natco has signed an agreement with Lupin to jointly market the product in the US market. Natco s ANDA is the first to file generic version of Tykerb and entitled for 18 days exclusivity. The annual sales of the drug in the US market are around US$9 million. The company has tied up with Lupin to market the drug in the US market. We are not expecting any at-risk launch by Natco/Lupin. For our projections, we have assumed 6% price erosion in the exclusivity period and 8% in the post exclusivity period, obtaining 4% market share during exclusivity and 2% market share post exclusivity. In conjunction with 25% probability of launch, we have arrived at a present value of the drug at 3.1 crore or.9 per share. ICICI Securities Ltd Retail Equity Research Page 5

6 Bendamustine Hydrochloride Powder Natco along with its marketing partner Breckenridge Pharmaceuticals has filed ANDA for Teva s Treanda powder. As the company was the first ANDA filer for the drug, it is entitled to 18 days of exclusivity. The annual sales of the drug in the US market were US$66 million. The patent is expected to expire in April 216. For our projections, we have assumed 4% price erosion in the exclusivity period and 8% in the post exclusivity period, obtaining 4% market share during the exclusivity and 2% market share post exclusivity. In conjunction with 25% probability of launch, we have arrived at a present value of the drug at 32 crore or 9.4/share. Glatiramer Acetate NPL entered into an exclusive licensing & supply agreement with Mylan Laboratories for Glatiramer Acetate in June 28. Under the agreement, Mylan has exclusive distribution rights for Glatiramer Acetate syringes in the US, Europe, Australia, New Zealand, Japan and Canada and includes an option to expand into additional territories. The drug is the generic version of Teva s Copaxone and is used in the treatment of multiple sclerosis. It had annual sales of US$3 billion in the US market. The patent of the drug expired on May 24, 214. However, the company is awaiting final approval for the product. Despite ongoing patent litigation, we expect Natco to launch the drug as soon as it gets approval for it. We estimate the NPV value of gcopaxone at 343. Exhibit 6: NPV of Copaxone US$ million unless mentioned Scenario 1 Scenario 2 Scenario 3 At risk launch Yes No No Scenario At risk launch & favourable decision No at risk launch & favourable court decision Launch post patent expiry Launch date Aug-14 Apr-15 Oct-15 Market size of Copaxone 2 & 4 mg (growth assumed 5%) Shift to 4 mg assumed 2% 4% 5% 4% 5% 5% Market size for 2 mg Assumptions Aug'14 to Mar'15 Apr'15 to Sep'15 Post Oct'15 (per year) Apr'15 to Sep'15 Post Oct'15 (per year) Post Oct'15 (per year) Players Price erosion (%) Market share (%) COGS for Mylan 4% 4% 4% Revenues for Natco US$ vs Revenue in crore PBT assumed (%) Tax rate Assumed terminal growth rate 3% 3% 3% Net present value per share ( ) Assumed probability 75% 25% % Share value ( ) Value per share of Copaxone ( ) 343 ICICI Securities Ltd Retail Equity Research Page 6

7 Exhibit 7: Trends in quarterly financials Crore Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 YoY (%) QoQ (%) Net sales Other operating income Revenues RM Cost % of Revenues Gross Profit Gross Profit Margin (%) Employee cost % of Revenues Other expenditure % of Revenues Total Expenditure % of Revenues EBITDA EBITDA Margins(%) Depreciation Interest cost Other income Exeptional items PBT Tax Tax rate (%) PAT PAT Margin (%) MI PAT after MI EPS ( ) SWOT Analysis Strengths - Focus on limited but niche opportunities, tie-ups with MNCs, larger Indian companies to share risks, focus on oncology in the domestic space, strong balance sheet. Weakness - Domestic oncology growth still flattish due to institutional focus. Opportunities - The US generics space. Threats - Increased USFDA scrutiny across the globe regarding cgmp issues and consolidation in the US pharmacy space. Strengthening of the rupee vis-à-vis US$. Possibility of bearing the litigation cost if Mylan loses gcopaxone litigation against Teva. Conference call highlights The management expects to get USFDA approval for Copaxone very soon. After the US launch, the company may look to launch in other geographies Update on Revlimid capsules: Recent feedback from the court hearings is positive for Natco The management expects to launch its first product under Dr Reddy s tie-up in H2FY16 NRC19 (Orphan drug molecule) is in the second phase of clinical studies. The company expect conclusion of this phase of studies by the end of CY14 ICICI Securities Ltd Retail Equity Research Page 7

8 Valuation For our valuation purpose, we have opted for the SoTP methodology. We have valued the base business separately and assigned NPV for some of the future launches as the FTF/Para IV status to some of them warrants future pipeline recognition. Similarly, we have calculated gcopaxone (Glatiramer Acetate) separately considering the likelihood of its launch anytime between now and September 215, post approval from the USFDA. This is a unique case as the court verdict, to determine the validity of the patent which is due after of October, will also have a bearing on the valuation. Considering the three scenarios of launches, we have assigned probabilities to each scenario to arrive at the valuation. Going by the company and Mylan s own assertion, we have assigned 75% probability of at risk launch by Mylan, anytime soon. Our target price of 14 includes base business value of 626 (13x FY16E EPS of 48.1) + 71 for NPV of other FTF/Para IVs for gcopaxone at 75% at risk launch probability. Exhibit 8: Valuation share Base Business (13x FY16E EPS of 48.1) 626 Copaxone NPV 343 Other Para IV Opportunities 71 Target Price 14 Exhibit 9: One year forward PE ( ) Mar-6 Sep-6 Mar-7 Sep-7 Mar-8 Sep-8 Mar-9 Sep-9 Mar-1 Sep-1 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 [ Price 19.2x 16.8x 15.6x 13.3x 7.3x Exhibit 1: Valuation Revenues Growth EPS Growth P/E EV/EBITDA RoNW RoCE ( crore) (%) ( ) (%) (x) (X) (%) (%) FY FY14E FY15E FY16E ICICI Securities Ltd Retail Equity Research Page 8

9 Company snapshot 1,2 Target Price: 14 1, Jan-8 Apr-8 Jul-8 Oct-8 Jan-9 Apr-9 Jul-9 Oct-9 Jan-1 Apr-1 Jul-1 Oct-1 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Source: Bloomberg, Company, ICICIdirect.com Research Key events Date Event Oct-8 Files first ANDA with Para IV certification with USFDA for Lanthanum Carbonate chewable tablets. Oct-1 Files ANDA with para IV certification with USFDA for the generic version of Celgene s Revlimid Capsules. Entitled to 18 days exclusivity Feb-11 Files ANDA with para IV certification for the generic version of Oseltamivir phosphate capsules. Entitled to 18 days exclusivity Jun-11 Enters into an alliance with Lupin to jointly market generic anti-cancer Lapatinib Ditosylate tablets in the US market Dec-11 Raises 67.5 crore through issue of 3,, shares in a QIP issue Mar-12 Indian Patent office grants India s first compulsory license to Natco Pharma to launch the generic version of Sorafenib Tosylate in India. Dec-12 Receives final approval for Lansoprazole DR capsules, a limited competition product in the US Jul-13 Wins patent litigation relating to Copaxone (Glatiramer Acetate) against Teva Pharma in US court of Appeals for the federal circuit Oct-13 Raises crore from CX securities (foreign institutional investor) by issuing 24 lakhs shares on a preference allotment basis Top 1 Shareholders Rank Name Latest Filing Date % O/S Position (m) Change (m) 1 Nannapaneni (V C) 31-Mar Time Cap Pharma Labs Pvt. Ltd. 31-Mar Natsoft Information Systems Pvt. Ltd. 31-Mar CX Securities, Ltd. 31-Mar ICICI Prudential Asset Management Co. Ltd. 3-Apr Shanghvi (Dilip S) 31-Mar Nannapaneni (Venkaiah Chowdary) HUF 31-Mar Nannapaneni (Durga Devi) 31-Mar SBI Funds Management Pvt. Ltd. 3-Apr Kantamani (Venkata Satya Swathi) 31-Mar Source: Reuters, ICICIdirect.com Research Shareholding Pattern (in %) Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Promoter FII DII Others Recent Activity Buys Sells Investor name Value Shares Investor name Value Shares Investment Professionals Ltd 6.75m.51m ICICI Prudential Asset Management Co. Ltd. -4.3m -.3m SBI Funds Management Pvt. Ltd. 4.89m.37m HSBC Global Asset Management (India) Private Limited -1.4m -.11m UTI Asset Management Co. Ltd..59m.4m Hamon Investment Group Pte. Ltd. -.8m -.8m BOI AXA Investment Managers Private Limited.14m.1m DSP BlackRock Investment Managers Pvt. Ltd. -.75m -.6m Neelima Sita Nannapaneni Trust.3m.m Natco Group Employees Welfare Trust -.51m -.6m Source: Reuters, ICICIdirect.com Research ICICI Securities Ltd Retail Equity Research Page 9

10 Financial summary Profit and loss statement Crore (Year-end March) FY13 FY14E FY15E FY16E Revenues ,2.4 Growth (%) Raw Material Expenses Employee Expenses Other expenses Total Operating Expenditure EBITDA Growth(%) Depreciation Interest Other Income PBT Taxation PAT before MI Minority Interest Less: Prior Period Items.... PAT Growth(%) EPS( ) Cash flow statement Crore (Year-end March) FY13 FY14E FY15E FY16E Profit after Tax Add: Depreciation (Inc)/dec in Current Assets Inc/(dec) in CL and Provisions CF from operating activities Other Investments 6.2. (Purchase)/Sale of Fixed Assets Deferred Tax Liability Minority Interest CF from investing activities Inc / (Dec) in Equity Capital Inc / (Dec) in Sec Loan Funds Inc / (Dec) in Unsec. Loan Funds Dividend & Dividend tax Inc/(dec) in Sec Pre Account CF from financing activities Net Cash flow Opening Cash Closing Cash Balance sheet Crore (Year-end March) FY13 FY14E FY15E FY16E Equity Capital Reserve and Surplus Total Shareholders funds Total Debt Deferred Tax Liability Minority Interest / Others Long Term Provisions Total Liabilities ,32.1 1,13.8 1,213.5 Gross Block Less: Acc Depreciation Net Block Capital WIP Total Fixed Assets Net Intangibles Investments Inventory Debtors Loans and Advances Cash Other Current Assets Total Current Assets Creditors Provisions Other Current Liabilities Total Current Liabilities Net Current Assets LT L & A & Other Non CA Application of Funds ,32. 1,13.8 1,213.5 Key ratios (Year-end March) FY13 FY14E FY15E FY16E Per share data ( ) EPS Cash EPS BV DPS Cash Per Share Operating Ratios (%) EBITDA Margin PBT / Total Operating income PAT Margin Inventory days Debtor days Creditor days Return Ratios (%) RoE RoCE RoIC Valuation Ratios (x) P/E EV / EBITDA EV / Net Sales Market Cap / Sales Price to Book Value Solvency Ratios Debt/EBITDA Debt / Equity Current Ratio Quick Ratio ICICI Securities Ltd Retail Equity Research Page 1

11 ICICIdirect.com coverage universe (Healthcare) I-Direct CMP TP Rating M Cap EPS ( ) PE(x) EV/EBITDA (x) RoCE (%) RoNW (%) Company Code ( ) ( ) ( Cr) FY14E FY15E FY16E FY14E FY15E FY16E FY14E FY15E FY16E FY14E FY15E FY16E FY14E FY15E FY16E Apollo Hospitals APOHOS HOLD 13, Aurobindo Pharma AURPHA HOLD 2, Biocon BIOCON HOLD 9, Cadila Healthcare CADHEA BUY 2, Cipla CIPLA HOLD 34, Divi's Laboratories DIVLAB BUY 17, Dr Reddy's Labs DRREDD BUY 4, Glenmark Pharma GLEPHA HOLD 15, Indoco Remedies INDREM HOLD 1, Ipca Laboratories IPCLAB BUY 1, Jubilant Life Sciences VAMORG HOLD 3, Lupin LUPIN BUY 44, Natco Pharma NATPHA HOLD 3, Sun Pharma SUNPHA BUY 131, Torrent Pharma TORPHA BUY 11, Unichem Laboratories UNILAB HOLD 1, ICICI Securities Ltd Retail Equity Research Page 11

12 RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Strong Buy: >15%/2% for large caps/midcaps, respectively, with high conviction; Buy: >1%/15% for large caps/midcaps, respectively; Hold: Up to +/-1%; Sell: -1% or more; Pankaj Pandey Head Research pankaj.pandey@icicisecurities.com ICICIdirect.com Research Desk, ICICI Securities Limited, 1 st Floor, Akruti Trade Centre, Road No. 7, MIDC, Andheri (East) Mumbai 4 93 research@icicidirect.com ANALYST CERTIFICATION We /I, Siddhant Khandekar CA INTER Krishna Kiran Konduri MBA FINANCE 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 personal views about any and all of 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. 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