lower realizations resulted in revenue growth of 9% yoy. Management during the AGM

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1 2016EquirusAll rights reserved Rating Information Price (Rs) 1,922 Target Price (Rs) 2,147 Target Date 31stMar 17 Target Set On 31st July'16 Implied yrs of growth (DCF) 10 Fair Value (DCF) 1,509 Fair Value (DDM) 484 Ind Benchmark SPBSMIP Model Portfolio Position - Stock Information Market Cap (Rs Mn) 56,999 Free Float (%) 49.2 % 52 Wk H/L (Rs) 2299/1150 Avg Daily Volume (1yr) 45,655 Avg Daily Value (Rs Mn) 74 Equity Cap (Rs Mn) 297 Face Value (Rs) 10 Bloomberg Code ATLP IN Ownership Recent 3M 12M Promoters 50.8 % 0.1 % 0.1 % DII 13.6 % 0.1 % 1.4 % FII 6.9 % -0.1 % 1.1 % Public 28.7 % -0.1 % -2.7 % Price % 1M 3M 12M Absolute -5.2 % 6.7 % 51.2 % Vs Industry -9.5 % -4.6 % 48.1 % VINATIORGA 0.5 % 20.3 % -0.7 % AARTIIND 5.4 % 4.3 % 32.8 % Standalone Quarterly EPS forecast Rs/Share 1Q 2Q 3Q 4Q EPS (16A) EPS (17E) Atul Ltd Absolute : LONG Relative : Overweight 1QFY17 Result: Estimate( ), TP( ), Rating( ) Regular Coverage 19% ATR in 8 Months In-line operational performance driven by strong volume growth, revenues lower due to subdued realizations, Maintain LONG Chemicals Atul reported revenues of Rs. 6.4bn in 1QFY17 (adjusted for excise duty) which was 3% Change in Estimates lower than EE mainly on account of lower realizations. Volume growth during the quarter stood at 19% with the commencement of operations at facilities expanded Rs. Mn FY17E Chg (%) FY18E Chg (%) during FY16. Atul is incurring capex of Rs. 1bn during FY17 (Rs. 3.6bn in FY16). To Sales 29,411-4% 34,066-4% factor in lower realisations despite strong volume growth we lower our revenue growth EBITDA 5,424-4% 6,380-6% estimates by ~4.0% for FY17E/18E respectively. We retain our LONG rating on the stock with Mar 17 price target of Rs. 2,147 at 20x TTM EPS of Rs (previous Mar 17 TP EPS 107 0% 125-7% Rs. 2,145). Consolidated Financials Volume growth of 19% during 1QFY17, lower realizations lead to revenue growth of Rs. Mn YE Mar FY16A FY17E FY18E FY19E 9%: The management indicated that volume growth for 1QFY17 stood at 19%, while Sales 26,014 29,411 34,066 39,048 lower realizations resulted in revenue growth of 9% yoy. Management during the AGM EBITDA 4,636 5,424 6,380 7,580 indicated that colors segment which saw a significant decline in volumes during FY16 Depreciation ,040 has started looking up and remained optimistic of the business during FY17. Revenue Interest Expense growth remained subdued in Life science chemicals business with revenues declining by Other Income % yoy while revenues in Performance chemicals business increased by 11% yoy. Reported PAT 2,693 3,612 3,696 4,560 Capex in aromatics business completed and segment should reach revenues of Rs. Recurring PAT 2,694 3,184 3,696 4,975 10bn by FY18E: Atul has completed Rs. 0.6bn capex in FY16 for its aromatics division Total Equity 12,747 15,873 18,944 22,879 at Ankleshwar. Capacities for P-cresols have increased at its plant in Ankleshwar by Gross Debt 2,760 2,761 2,611 2,917 60% which would also result in increasing capacity of products like Manganese Cash ,494 4,140 Sulphate, Sodium Sulphite, Sodium Sulphate which are some of the byproducts coming Rs Per Share FY16A FY17E FY18E FY19E out of that plant. We believe that increase in capacity of P-cresols would gradually Earnings help the company in improving its margins in Performance chemicals business rough Book Value calculations indicate this segment to have the highest margins in the segment for the Dividends company. The management indicated that they should be on track to achieve Rs. 10bn FCFF of sales from this plant (currently ~Rs. 7bn as some portion is booked in Pharma sales), P/E (x) which we believe should be possible by FY18E. P/B (x) Focus on branded sales and dates business to contribute during FY18E: Management EV/EBITDA (x) indicated that they plan to increase sales of its branded products from ~Rs. 2bn in FY16 ROE (%) 23 % 22 % 21 % 22 % to Rs. 3bn during FY17. We believe that increase in branded sales to have positive Core ROIC (%) 18 % 19 % 20 % 22 % impact on margins. Atul had recently started sales of tissue cultured date plantations EBITDA Margin (%) 18 % 18 % 19 % 19 % from India and sounded optimistic of recording sales worth ~Rs. 0.45bn from the same Net Margin (%) 10 % 11 % 11 % 12 % during FY17E ( mn plants). The company has also launched its branded date foods under the name Date Delights with a couple of products launched in Gujarat, Rajasthan and is awaiting FSSAI approvals for launching further products during FY17E. August 1, 2016 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 1 of 10 Before reading this report, you must refer to the disclaimer on the last page.

2 Key takeaways from the AGM 1. Atul is currently working on 3 projects which are expected to be completed during FY17 with total capital outlay of Rs. 980mn. 2. The company will be financially prudent while reaching its long term growth target and wouldn t stretch the balance sheet. The company is building its capabilities around understanding the products that it manufactures. 3. Subsidiaries in Brazil, China, UK, and USA have strengthened and are likely to support the Indian business in the longer run. 4. The management keeps on talking price hikes in some products where it has pricing power. 10. Akzo Nobel JV it is still under the process of evaluation and will take another 5-6 months to finalize. The JV will buy Hydrogen & Chlorine from Atul ltd at market prices to manufacture MCA and will sell MCA to Atul and other customers. Atul is the largest consumer of MCA in India and hence it made significant sense for Akzo to enter into a JV with Atul to manufacture the same. 11. Demand for construction chemicals manufactured by the company increases significantly when crude prices are lower resulting in strong performance from the polymers business for the company. 12. Tax rate during 1QFY17 was lower on account of depreciation benefit arising out of power plants and also on R&D expenditure. 13. Export revenues grew by 28% during the current quarter. 5. Company is looking to improve its procurement, efficiencies in manufacturing and throughput to derive benefits out of scale in various businesses. The management believes that there is huge untapped potential both internal and external to improve for the company. 6. Colors business Huge market opportunity with global size of US$7-9bn where the company is operating. Segments where Rudolf is present has market size of Rs. 20bn while Indian market for Dyes is ~Rs. 36bn. To tap into the big opportunity the company is further strengthening its sales team in the segment. 7. Colors business The Company is a big supplier in B2B to giants like Huntsman and Dyestar. These companies had reduced procurement from Atul during FY16 resulting in poor performance of the division. Sales to Huntsman and Dyestar have picked up during FY17 and should result in better year for the colors business segment. 8. ARDP (dates business): The Company sold 300 plants during FY16 to Bangladesh and is on track to achieve sales of Rs mn during FY17. The company aims to sell around mn pieces of tissue cultured date plants during the year. 9. Management indicated that last year was profitable for Amal ltd, which posted profits of ~Rs. 40mn and FY17 is looking good for Amal ltd where they have increased capacities in products like Sulphur Di Oxide. August 1, 2016 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 2 of 10

3 Quarterly Results Table (Standalone) % Change RsMn 1QFY17 1QFY17E 4QFY16 1QFY16 1QFY17E 4QFY16 1QFY16 Net Sales 6,356 6,578 6,209 5,831-3% 2% 9% Marginally below EE Comments Raw materials 3,276 3,375 3,110 2,913-3% 5% 12% Power and Fuel Cost % 5% 2% Employee Cost % -6% 9% Other Expensitures % -15% -8% Total Expenditures 5,186 5,447 5,155 4,842-5% 1% 7% EBITDA 1,171 1,131 1, % 11% 18% Depreciation % 20% 45% Lower than expected operating expenditures led to beat EBIT % 9% 14% Interest % 10% 37% Other Income % -64% -37% PBT % -2% 7% Tax % -58% -47% Recurring PAT % 29% 32% Extraordinaries Reported PAT 1, % 97% 85% EPS (Rs) % 29% 32% Lower than expected operating expenditures and tax expense led to the beat EBITDA Margin 18.4% 17.2% 17.0% 17.0% 122 bps 145 bps 146 bps EBIT Margin 15.2% 14.6% 14.2% 14.5% 59 bps 98 bps 67 bps PBT Margin 14.9% 14.7% 15.7% 15.2% 25 bps -72 bps -22 bps PAT Margin 19.4% 10.0% 10.1% 11.4% 941 bps 932 bps 799 bps Tax Rate 15.2% 32.0% 35.7% 30.9% bps bps bps August 1, 2016 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 3 of 10

4 Company Snapshot How we differ from Consensus EPS Sales PAT Key Estimates: - Equirus Consensus % Diff Comment FY17E % We believe the additional capex will FY18E FY17E , ,540-1 % 0 % deliver strong revenues for the company, which will result in increase in profitability FY18E 34,066 33,615 1 % FY17E 3,612 3, % FY18E 3,696 3,716-1 % Segment FY13 FY14 FY15 FY16 FY17E FY18E FY19E Net Sales (RsMn) Standalone Crop Protection 3,850 4,360 3,460 3,816 3,892 4,282 4,796 Pharmaceuticals 3,140 3,060 3,720 3,906 4,140 4,637 5,240 Bulk Chemicals Colors 3,300 4,260 5,150 4,682 5,290 6,084 6,996 Floras 3,880 4,100 4,695 4,260 5,112 5,981 6,878 Polymers 4,680 6,330 6,899 6,209 7,140 8,284 9,505 EBIDTA 2,473 3,431 3,757 4,322 4,885 5,672 6,719 PAT 1,355 2,128 2,174 2,681 3,324 3,301 4,066 Risk to Our View Increasing crude oil, coal prices which are the key raw materials. Increasing competition from local & global players. Stricter environment norms. Key Triggers Growth in high margin segments & reducing losses in colors business Sensitivity to Key Variables % Change % Impact on EPS EBITDA Margin -1 % -7 % DCF Valuations & Assumptions Rf Beta Ke Term. Growth Debt/IC in Term. Yr 7.5 % % 3.0 % 13.4 % - FY17E FY18E FY19-21E FY22-26E FY27-31E Sales Growth 13 % 16 % 14 % 12 % 8 % NOPAT Margin 11 % 11 % 12 % 11 % 11 % IC Turnover RoIC 19.0 % 19.9 % 22.3 % 21.0 % 20.7 % Years of strong growth Valuation as on date (Rs) ,237 1,395 1,505 Valuation as of 31stMar' ,047 1,339 1,509 1,629 Based on DCF, assuming 10 years of 13% CAGR growth and 20% average ROIC, we derive current fair value of Rs. 1,395 and 31 st March 2017 fair value of Rs. 1,509. Company Description: Atul was originally promoted by Late Shri Kasturbhai Lalbhai in 1947 as Atul Products Ltd. as a step towards backward integration of their cotton textile business. It has one of the biggest integrated chemical complexes in Asia with well diversified portfolio of +850 products divided into Life Science Chemicals (~90 products) and Performance & Other Chemicals (~ 760 products) catering to the requirement of wide range of industries. It has manufacturing facilities located at Ankleshwar and Valsad in Gujarat & Tarapur in Maharashtra Comparable valuation Mkt Cap Price Target EPS P/E BPS P/B RoE Div Yield Company Reco. CMP Rs. Mn. Target Date FY16A FY17E FY18E FY16A FY17E FY18E FY16A FY17E FY16A FY17E FY18E FY16A FY17E Atul Limited LONG 1,922 56,999 2, st Mar % 22 % 21 % 0.2 % 0.3 % Vinati Organics Ltd LONG , st Dec' % 27% 31 % 0.8 % 0.9 % AARTIIND N R ,243 NR NR % - 16 % 1.5 % - August 1, 2016 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 4 of 10

5 Standalone Quarterly Earnings Forecast Rs in Mn 1Q16A 2Q16A 3Q16A 4Q16A 1Q17A 2Q17E 3Q17E 4Q17E 1Q18E 2Q18E 3Q18E 4Q18E FY16A FY17E FY18E FY19E Revenue 5,874 6,450 6,057 6,209 6,356 6,752 7,165 7,027 7,568 7,726 8,199 8,041 24,589 27,301 31,534 36,009 Raw materials 2,913 3,201 3,033 3,110 3,276 3,491 3,704 3,633 3,973 4,056 4,263 4,181 12,257 14,104 16,474 19,085 Power and Fuel Cost ,633 2,878 3,311 3,508 Employee Cost ,722 1,811 1,978 2,161 Other Expenses ,004 1,066 1,045 3,655 3,622 4,099 4,536 Selling and Admin Expenses EBITDA 984 1,246 1,038 1,054 1,171 1,202 1,275 1,237 1,324 1,375 1,500 1,472 4,322 4,885 5,672 6,719 Depreciation EBIT 843 1, ,002 1,075 1,037 1,104 1,155 1,280 1,252 3,705 4,080 4,792 5,759 Interest Other Income PBT 873 1, ,064 1,025 1,098 1,152 1,282 1,253 3,915 4,024 4,785 5,809 Tax ,250 1,128 1,483 1,743 Recurring PAT ,664 2,896 3,301 4,066 Extraordinary Reported PAT , ,746 3,324 3,301 4,066 EPS (Rs) Sequential Growth (%) Revenue -6 % 11 % -6 % 3 % 2% 6% 6% -2% 8% 2% 6% -2% Raw materials -10 % 10 % -5 % 3 % 5% 7% 6% -2% 9% 2% 5% -2% EBITDA 23 % 26 % -17 % 2 % 11% 3% 6% -3% 7% 4% 9% -2% EBIT 27 % 30 % -20 % 0 % 9% 4% 7% -4% 7% 5% 11% -2% Recurring PAT 36 % 34 % -25 % 3 % 29% -17% 8% -4% 9% 5% 11% -2% EPS 36 % 34 % -25 % 3 % 29% -17% 8% -4% 9% 5% 11% -2% Yearly Growth (%) Revenue -9 % -3 % -3 % 0 % 9% 5% 18% 13% 19% 14% 14% 14% -4% 11% 16% 14% EBITDA -5 % 28 % 10 % 31 % 18% -4% 23% 17% 13% 14% 18% 19% 15% 13% 16% 18% EBIT -7 % 32 % 10 % 33 % 14% -9% 22% 17% 14% 15% 19% 21% 16% 10% 17% 20% Recurring PAT 0 % 38 % 13 % 40 % 32% -18% 19% 11% -6% 19% 22% 24% 23% 9% 14% 23% EPS 0 % 38 % 13 % 40 % 32% -18% 19% 11% -6% 19% 22% 24% 23% 9% 14% 23% Margin (%) EBITDA 17 % 19 % 17 % 17 % 18% 18% 18% 18% 18% 18% 18% 18% 18% 18% 18% 19% EBIT 14 % 17 % 15 % 14 % 15% 15% 15% 15% 15% 15% 16% 16% 15% 15% 15% 16% PBT 15 % 18 % 14 % 16 % 15% 15% 15% 15% 15% 15% 16% 16% 16% 15% 15% 16% PAT 10 % 13 % 10 % 10 % 13% 10% 10% 10% 10% 10% 11% 11% 11% 11% 10% 11% August 1, 2016 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 5 of 10

6 Mar/09 Jun/09 Sep/09 Dec/09 Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 Mar/09 Jun/09 Sep/09 Dec/09 Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 Mar/09 Jun/09 Sep/09 Dec/09 Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 Consolidated Financials P&L (Rs Mn) FY16A FY17E FY18E FY19E Balance Sheet (Rs Mn) FY16A FY17E FY18E FY19E Cash Flow (Rs Mn) FY16A FY17E FY18E FY19E Revenue 26,014 29,411 34,066 39,048 Equity Capital PBT 4,009 4,464 5,386 6,562 Op. Expenditure 21,379 23,987 27,686 31,468 Reserve 12,450 15,576 18,647 22,582 Depreciation ,040 EBITDA 4,636 5,424 6,380 7,580 Networth 12,747 15,873 18,944 22,879 Others Depreciation ,040 Long Term Debt 2,760 2,739 2,589 2,894 Taxes Paid 1,119 1,280 1,691 2,003 EBIT 3,978 4,545 5,420 6,540 Def Tax Liability 1, Change in WC 174-1,086-1,154-1,315 Interest Expense Minority Interest Operating C/F 3,839 3,405 3,501 4,285 Other Income Account Payables 3,069 3,547 4,042 4,583 Capex -3,681-1,275-1,015-1,815 PBT 4,009 4,464 5,386 6,562 Other Curr Liabi 1,694 1,897 2,129 2,440 Change in Invest Tax 1,316 1,280 1,691 2,003 Total Liabilities & Equity 21,418 25,015 28,613 33,199 Others PAT bef. MI & Assoc. 2,693 3,184 3,696 4,560 Net Fixed Assets 7,498 8,718 8,758 8,718 Investing C/F -3,500-2,105-1,015-1,815 Minority Interest Capital WIP 1, Change in Debt Profit from Assoc Others 616 2,427 2,442 2,657 Change in Equity Recurring PAT 2,694 3,184 3,696 4,560 Inventory 4,348 4,956 5,740 6,579 Others ,130 Extraordinaires Account Receivables 4,348 4,956 5,787 6,686 Financing C/F Reported PAT 2,693 3,612 3,696 4,560 Other Current Assets 2,573 3,126 3,391 3,819 Net change in cash ,662 1,645 FDEPS (Rs) Cash ,494 4,140 RoE (%) 23 % 22 % 21 % 22 % DPS (Rs) Total Assets 21,418 25,015 28,613 33,199 RoIC (%) 19 % 19 % 19 % 20 % CEPS (Rs) Non-cash Working Capital 6,507 7,592 8,746 10,061 Core RoIC (%) 18 % 19 % 20 % 22 % FCFPS (Rs) Cash Conv Cycle Div Payout (%) 11 % 13 % 17 % 14 % BVPS (Rs) WC Turnover P/E EBITDAM (%) 18 % 18 % 19 % 19 % FA Turnover P/B PATM (%) 10 % 11 % 11 % 12 % Net D/E P/FCFF Tax Rate (%) 33 % 29 % 31 % 31 % Revenue/Capital Employed EV/EBITDA Sales Growth (%) -2 % 13 % 16 % 15 % Capital Employed/Equity EV/Sales FDEPS Growth (%) 19 % 18 % 16 % 23 % Dividend Yield (%) 0.2 % 0.3 % 0.4 % 0.4 % TTM P/E vs. 2 yr forward EPS growth TTM EV/EBITDA vs. 2 yr forward EBITDA growth TTM P/B vs. 2 yr forward RoE % 70,000 50% 2400 RoE 35% EPS Growth 3.5x % 17x 60,000 40% 10x 2000 EBITDA Growth 28% 50, % 8x x 12x 30% 21% 40, % x 1.5x 30,000 8x 20% 14% % x 20,000 4x % 4x 10% 400 7% 0.5x 10,000 2x 0 0% 1x - 0% 0 0% August 1, 2016 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 6 of 10

7 Historical Consolidated Financials P&L (Rs Mn) FY13A FY14A FY15A FY16A Balance Sheet (Rs Mn) FY13A FY14A FY15A FY16A Cash Flow (Rs Mn) FY13A FY14A FY15A FY16A Revenue 20,429 24,578 26,564 26,014 Equity Capital PBT 1,810 2,884 3,256 4,009 Op. Expenditure 17,937 20,940 22,551 21,379 Reserve 7,246 9,189 10,093 12,450 Depreciation EBITDA 2,491 3,637 4,013 4,636 Networth 7,542 9,486 10,390 12,747 Others Depreciation Long Term Debt 3,259 3,124 2,346 2,760 Taxes Paid ,119 EBIT 1,978 3,055 3,410 3,978 Def Tax Liability ,092 Change in WC , Interest Expense Minority Interest Operating C/F 1,471 1,464 3,063 3,839 Other Income Account Payables 2,916 3,230 2,722 3,069 Capex -1,136-1,156-1,776-3,681 PBT 1,810 2,884 3,256 4,009 Other Curr Liabi 1,589 1,877 1,901 1,694 Change in Invest Tax ,316 Total Liabilities & Equity 15,638 18,156 18,231 21,418 Others PAT bef. MI & Assoc. 1,227 2,004 2,262 2,693 Net Fixed Assets 5,061 5,494 5,137 7,498 Investing C/F -1,054-1,117-1,666-3,500 Minority Interest Capital WIP ,121 1,807 Change in Debt Profit from Assoc Others Change in Equity Recurring PAT 1,146 1,993 2,264 2,694 Inventory 3,665 4,342 4,153 4,348 Others Extraordinaires Account Receivables 3,517 4,371 4,424 4,348 Financing C/F , Reported PAT 1,199 2,192 2,407 2,693 Other Current Assets 1,920 2,312 2,397 2,573 Net change in cash EPS (Rs) Cash RoE (%) 16 % 23 % 23 % 23 % DPS (Rs) Total Assets 15,638 18,157 18,231 21,418 RoIC (%) 13 % 18 % 18 % 19 % CEPS (Rs) Non-cash Working Capital 4,597 5,918 6,351 6,507 Core RoIC (%) 13 % 19 % 19 % 18 % FCFPS (Rs) Cash Conv Cycle Div Payout (%) 17 % 12 % 10 % 11 % BVPS (Rs) WC Turnover P/E EBITDAM (%) 12 % 15 % 15 % 18 % FA Turnover P/B PATM (%) 6 % 8 % 9 % 10 % Net D/E P/FCFF Tax Rate (%) 32 % 31 % 31 % 33 % Revenue/Capital Employed EV/EBITDA Sales growth (%) 13 % 20 % 8 % -2 % Capital Employed/Equity EV/Sales FDEPS growth (%) 26 % 74 % 14 % 19 % Dividend Yield (%) 0.2 % 0.2 % 0.2 % 0.2 % August 1, 2016 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 7 of 10

8 Equirus Securities Pankaj Sharma Executive Director /41 Research Analysts Sector/Industry Equity Sales Abhishek Shindadkar IT Services Subham Sinha Anirvan Sarkar Banking & Financial Services Sweta Sheth Ashutosh Tiwari Auto, Metals & Mining Vishad Turakhia Devam Modi Power & Infrastructure Dhaval Dama FMCG, Mid-Caps Dealing Room Maulik Patel Oil and Gas Ashish Shah Nimish Mehta Pharma Ilesh Savla Umesh Raut Industrials Jigar Chokshi Associates Manoj Kejriwal Ankit Choudhary Sandip Amrutiya Manoj Gori Compliance Officer Meet Chande Smita Sharma Parva Soni Pranav Mehta Raj Kantawala Saylee Warade Vikas Jain Rating & Coverage Definitions: Absolute Rating LONG : Over the investment horizon, ATR >= Ke for companies with Free Float market cap >Rs 5 billion and ATR >= 20% for rest of the companies SHORT: ATR <= negative 5% over investment horizon TRADE: Stocks that do not meet the criteria for either LONG or SHORT Relative Rating OVERWEIGHT: Likely to outperform the benchmark by at least 5% over investment horizon BENCHMARK: likely to perform in line with the benchmark UNDERWEIGHT: likely to under-perform the benchmark by at least 5% over investment horizon Target Price and Investment Horizon Target Price is a point value for stocks with Absolute rating of LONG or SHORT and a range value for stocks rated TRADE. Investment Horizon is set at a minimum 3 months to maximum 15 months with target date falling on last day of a calendar quarter. Lite vs. Regular Coverage vs. Spot Coverage We aim to keep our rating and estimates updated at least once a quarter for Regular Coverage stocks. Generally, we would have access to the company and we would maintain detailed financial model for Regular coverage companies. We intend to publish updates on Lite coverage stocks only an opportunistic basis and subject to our ability to contact the management. Our rating and estimates for Lite coverage stocks may not be current. Spot coverage is meant for one-off coverage of a specific company and in such cases, earnings forecast and target price are optional. Spot coverage is meant to stimulate discussion rather than provide a research opinion. Registered Office: Equirus Securities Private Limited Unit No. 1201, 12th Floor, C Wing, Marathon Futurex, N M Joshi Marg, Lower Parel, Mumbai Tel. No: +91 (0) Fax No: +91- (0) Corporate Office: 3rd floor, House No. 9, Magnet Corporate Park, Near Zydus Hospital, B/H Intas Sola Bridge, S.G. Highway Ahmedabad Gujarat Tel. No: +91 (0) Fax No: +91 (0) August 1, 2016 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 8 of 10

9 2016 Equirus Securities Private Limited. All rights reserved. For Private Circulation only. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Equirus Securities Private Limited Analyst Certification I, DhavalDama, author to this report, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Disclaimers Equirus Securities Private Limited (ESPL) having Corporate Identification Number U65993MH2007PTC is registered in India with Securities and Exchange Board of India (SEBI) as a trading member on the Capital Market (Reg. No. INB ), Futures & Options Segment (Reg. No.INF ) of the National Stock Exchange of India Ltd. (NSE) and on Cash Segment (Reg. No.INB ) of Bombay Stock Exchange Limited (BSE).ESPL is also registered with SEBI as Research Analyst under SEBI (Research Analyst) Regulations, 2014 (Reg. No. INH ). There are no disciplinary actions that have been taken by any regulatory authority. ESPL is a subsidiary of Equirus Capital Pvt. Ltd. (ECPL) which is registered with SEBI as Category I Merchant Banker. ESPL/its affiliates provide investment banking services including but not limited to Private Equity, Mergers & Acquisitions, Structured Finance and Institutional Equities. ESPL/its affiliates might have, managed or co-managed public offering of securities of the subject company or have received a mandate from the subject company or might have received compensation from the subject company for investment banking or brokerage services in the past twelve months. 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This document is prepared for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document including the merits and risks involved. This document is intended for general circulation and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. ESPL and its group companies, employees, directors and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. ESPL/its affiliates do and seek to do business with companies covered in its research report. Thus, investors should be aware that the firm may have conflict of interest. Additional Disclaimer for U.S. Persons ESPL/its affiliates are not a registered broker dealer under the U.S. Securities Exchange Act of 1934, as amended (the 1934 act ) and under applicable state laws in the United States. In addition Equirus is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Equirus, including the products and services described herein are not available to or intended for U.S. persons. The information contained in this Report is not intended for any person who is a resident of the United States of America or a resident of any jurisdiction, the laws of which imposes prohibition on soliciting the securities business in that jurisdiction without going through the registration requirements and/or prohibit the use of any information contained in this website. This Report and its respective contents does not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. "U.S. Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US Persons" under certain rules. August 1, 2016 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 9 of 10

10 Disclosures Disclosure of Interest statement for the subject Company Yes/No If Yes, nature of such interest Analyst/ESPL/Associate/Relatives financial interest Analyst/ESPL/Associate/Relatives actual/beneficial ownership of 1% or more Analyst/ESPL/Associate/Relatives material conflict of interest Whether ECPL managed any public offering in past 12 months * Associate means individual who assist Analyst No No No No August 1, 2016 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 10 of 10