Torrent Pharmaceuticals (TORPHA) 1301

Transcription

1 Result Update Rating matrix Rating : Hold Target : 1365 Target Period : months Potential Upside : 5% What s Changed? Target Changed from 1200 to 1365 EPS FY18E Changed from 48.3 to 53.3 EPS FY19E Changed from 65.8 to 66.5 EPS FY20E Introduced at 79.6 Rating Unchanged Quarterly Performance Q2FY18 Q2FY17 YoY (%) Q1FY18 QoQ (%) Revenue 1, , , EBITDA EBITDA (%) bps bps Net Profit Key Financials ( crore) FY17 FY18E FY19E FY20E Revenues EBITDA Net Profit EPS ( ) Valuation summary FY17 FY18E FY19E FY20E PE (x) Target PE (x) EV to EBITDA (x) Price to book (x) RoNW (%) RoCE (%) Stock data Particular Amount Market Capitalisation crore Debt (FY17) 2510 crore Cash (FY17) 894 crore EV crore 52 week H/L ( ) 1575/1142 Equity capital 84.6 crore Face value 5 Price performance (%) 1M 3M 6M 1Y Torrent Pharma Alembic Pharma Glenmark Pharma Research Analyst Siddhant Khandekar siddhant.khandekar@icicisecurities.com Mitesh Shah mitesh.sha@icicisecurities.com Harshal Mehta harshal.mehta@icicisecurities.com November 7, 2017 Torrent Pharmaceuticals (TORPHA) 1301 Muted results; Unichem acquisition in focus Revenues came in flat YoY at 1429 crore, below I-direct estimate of 1542 crore mainly due to 21% YoY decline in the US to 255 crore (I-direct estimate: 281 crore) and 24% YoY decline in Brazil to 120 crore (I-direct estimate: 188 crore). Domestic business, on the other hand, grew 22% YoY to 607 crore (I-direct estimate: 546 crore) EBITDA margins were flat at 23% YoY (I-direct estimate: 21.0%). EBITDA remained flat YoY at 329 crore Net profit marginally fell 1% YoY to 204 crore and came in line with I-direct estimate of 206 crore Exports growth mainly driven by US (ex-gabilify) Despite being a late entrant in the US market, the company has built a healthy pipeline of 94 filed ANDAs of which 29 are pending final approvals. The US remains in good shape with exclusivity (shared) launches such as gcymbalta and gabilify, which have proven Torrent s capabilities. To expand its presence in non-oral segments like derma, injectable, oncology, the company acquired Zyg Pharma. Torrent has also entered into a number of collaborations. However, US contribution to total revenues is likely to decline from 23% in FY17 to ~16% by FY20, due to high base of gabilify. We expect the US base business to de-grow at 3% CAGR in FY17-20E to 1227 crore. The European franchisee is growing at a strong pace. A recovery in Brazil and Germany augurs well, going ahead. We expect Germany and Brazil sales to grow at a CAGR of 15% and 13% to 1226 crore and 1017 crore, respectively, in FY17-20E. India growth steady; acquires Unichem s domestic business Domestic branded formulations have grown at 17% CAGR in FY12-17, driven by chronic focus and Elder acquisition. The acquisition of Elder Pharma s branded portfolio has added new therapies like neutraceuticals, gynaecology and helped fill up portfolio gaps. The Unichem acquisition will bring ~ 900 crore of the branded portfolio. Chronic focus, diversified portfolio, nimble-footed approach Torrent has remained ahead of the curve when it comes to strategic decision making. In domestic formulations, it concentrated on high yielding chronic therapies like CVS and neuropathy when most Indian players were growing in anti-infectives (acute). It was one of the early entrants in the Brazilian markets. It acquired a marketing company in Germany in Just when it was witnessing a slowdown in domestic formulations, it acquired Elder s lucrative formulations business. US launches such as gabilify and gcymbalta have strengthened the US business and overall financial health. Strong margins and high return ratios are some of the major differentiators for Torrent. Unichem deal fairly priced but to strain balance sheet; maintain HOLD Post the Unichem acquisition, the domestic business contribution will increase to 45% from 37% in FY18E. The Unichem acquisition will catapult Torrent Pharma to the fifth position in the India pharma market (IMS) and increase its domestic market share from the current 2.4% to 3.4% in the IPM. The management expects the deal to be EPS accretive in three years. While the valuation of 4x and 3.4x on FY18E and FY19E Unichem estimates, respectively, is neither cheap nor expensive, the deal will certainly strain the balance sheet (D/E to go up from 0.4x to 1.0x). However, we believe this is a fair option for capital allocation given the blurred visibility in the exports space, especially US generics. Although we have not considered the deal financials for want of completion of deal, our hypothetical calculation has led to a valuation of ICICI Securities Ltd Retail Equity Research

2 Variance analysis Q2FY18 Q2FY18E Q2FY17 Q1FY18 YoY (%) QoQ (%) Comments Revenue 1, , , , Revenues beat vis-à-vis I-direct estimates mainly due to 9% decline in the US and 36% decline in Brazil Raw Material Expenses Employee Expenses Other Expenditure EBITDA YoY increase in raw material and employee cost was offset by lower other expenditure. Beat vis-à-vis I-direct estimates was mainly due to better-thanexpected gross margins and lower other expenses EBITDA (%) bps 141 bps Interest Depreciation Other Income PBT before EO & Forex EO PBT Tax PAT before MI MI Net Profit YoY decline in line with operational performance Key Metrics India Excluding GST impact like-to-like YoY growth was 27-28% Brazil YoY decline and miss-vis-à-vis I-direct cost was mainly due to one-off compensation payment and additional discount US YoY de-growth mainly on account of price erosion across portfolio. Miss vis-à-vis I-direct estimates was mainly due to steeper-than-expected price erosion in the base business Germany Change in estimates FY18E FY19E ( Crore) Old New % Change Old New % Change Comments Revenue 6, , , , EBITDA 1, , , , EBITDA Margin (%) bps bps Increased estimates mainly due to better-than-expected margins in Q2FY18 PAT , , EPS ( ) Changed largely in sync with EBITDA Assumptions Current Earlier ( crore) FY16 FY17 FY18E FY19E FY18E FY19E India 1, , , , , ,500.7 Brazil Reduction mainly due to lower than-expected sales in Q2FY18 US 2, , , , , ,274.8 Reduction mainly due to steeper-than-expected price erosion and delay in product launches Germany , ,064.0 ICICI Securities Ltd Retail Equity Research Page 2

3 Company Analysis Incorporated in 1959, the company is a mid-sized generic player with a strong presence in domestic and semi-regulated markets and a growing presence in regulated markets. It is also present in the Indian CRAMS space via supply agreement with Danish pharma major Novo Nordisk for the latter s insulin business in India. Also, there are chronic therapies like cardiovascular, neurology and diabetology along with women's healthcare and pain management post acquisition of Elder s selected domestic portfolio. In FY14, the company acquired Elder Pharma's domestic portfolio of 30 brands mainly in the women's healthcare, pain management and neutraceuticals business. Elder s premium calcium supplement brand Shelcal had a market share of ~30%. Torrent has acquired two brands from Novartis in Q1FY18, which further strengthens its domestic gynaecology portfolio. The company acquired Unichem s branded business of India and Nepal for a consideration of 3,600 crore. Unichem's India business comprises a portfolio of more than 120 brands in India and Nepal, a manufacturing plant at Sikkim catering to these markets with all employees engaged in the said business. The transaction is on an ongoing concern basis by way of a slump sale. Unichem India s business sales was ~ 840 crore in FY17. Torrent will fund the acquisition through a mix of internal accruals and borrowings. The deal is expected to close by end of More than 3,000 employees will be added to Torrent's employee pool. As per IMS MAT, with this deal, Torrent s domestic market share will increase to 3.4% from the current 2.4% making it the fifth largest drug maker in India. Unichem s top brands include Losar, Unienzyme, Ampoxin, Telsar and Vizylac. Torrent s existing key therapies market share in CVS, CNS, gastro-intestinal (GI) therapies will increase from 5.6% to 8.6%; 6.4% to 8.4%; and 3.1% and 3.9%, respectively The company has a significant presence in exports markets in countries like Brazil, Germany and lately in the US among others. Despite being a late entrant in the US, the company s US revenue increased to ~US$200 million in FY17 from just ~US$23 million in FY11 mainly due to limited competition products such as gabilify (Aripiprazole, CNS) in FY16 and gcymbalta (duloxetine; anti-depression) in FY14. Post acquisition of Zyg Pharma (from Mumbai based Encore Group), the company has also started filings in niche dermatological segment in the US. Chronic focus, increased US contributions, financial discipline, successful M&A/deal making track record, higher return ratios and higher dividend payouts are some of the USPs of Torrent Pharma. We expect sales to grow at a CAGR of 10% in FY17-20E to 7129 crore driven by India and the US. Exhibit 1: Revenues to grow at CAGR of 10% in FY17-20E ( crore) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, , % CAGR 4, , , % CAGR 5, , , ,729.6 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Revenues 2,226.5 ICICI Securities Ltd Retail Equity Research Page 3

4 ( crore) Indian branded formulations (without Unichem consolidation)- Indian branded formulations have grown at a CAGR of 17% in FY Acute: chronic & sub-chronic ratio is 23:77, respectively. As per AIOCD (MAT July, 2017), the company is ranked fifteenth in IPM with a market share of 2.3%. It is ranked third in cardiovascular and fourth in neurology therapies in IPM, as per AIOCD. We expect domestic branded formulations to grow at a CAGR of 14% in FY17-20E to 2917 crore. Exhibit 2: Indian branded formulations growth trend (without Unichem consolidation) ( crore) 3,500 3,000 2,500 2,000 1,500 1,000 1,034 1,176 1, % CAGR 1,829 1,976 2, % CAGR 2,604 2, FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E India US - Despite being a late entrant in the US market the company has built a healthy pipeline of 94 filed ANDAs of which 29 are pending for final approvals. The US remains in good shape with exclusivity (shared) launches such as gabilify and gcymbalta, which have proven Torrent s capabilities. To expand its presence in non-oral segments like derma, injectable, oncology, the company acquired Zyg Pharma. It has also entered a number of collaborations. US contribution to total revenues is likely to grow from 18% in FY15 to ~23% by FY19. We expect US sales to decline at 3% CAGR in FY17-20E to 1275 crore due to the high base of gabilify. Exhibit 3: US growth witnessing muted growth 3,200 2,800 2,400 2,000 1,600 1, , % CAGR -3.1% CAGR 1,347 1,033 1,116 1, FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E US Germany - In Germany, the company operates through marketing company Heumann Pharma. The German business is tender based. Germany (including other generic markets) has grown at a CAGR of 10% in FY Going ahead, we expect Germany to grow at a CAGR of 15% ICICI Securities Ltd Retail Equity Research Page 4

5 ( crore) (%) in FY17-20E mainly driven by new tenders and dossier income as well as tractions start coming from the OTC segment. Exhibit 4: EBITDA to grow at CAGR of 9% in FY17-20E 3,500 3, , ,500 2,000 1,500 1, , , , ,659 1, FY13 FY14 FY15 FY14 FY17 FY18E FY19E FY20E EBITDA EBITDA Margins (%) 10 Exhibit 5: Net profit to grow at CAGR of 9% in FY17-20E ( crore) 2,000 1,800 1,600 1,400 1,200 1, , ,347 1, FY12 FY13 FY14 FY15 FY14 FY17 FY18E FY19E Net Profit Net Profit Margins (%) (%) ICICI Securities Ltd Retail Equity Research Page 5

6 Exhibit 6: Return ratios to remain healthy (%) FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E RoNW (%) ROCE (%) Exhibit 7: Trends in quarterly financials Crore Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 YoY (%) QoQ (%) Net Sales OOI Revenues Total RM cost RM cost % Revenues bps 7 bps Gross Profit GPM (%) bps -7 bps Employee cost % sales bps 66 bps Other expenditure % of sales bps -214 bps Total Expenditure % of Revenues bps -141 bps EBITDA EBITDA Margins (%) bps 141 bps Depreciation Interest cost Other Income PBT before forex & EO Forex & EO PBT Tax Tax rate (%) PAT PAT after MI EPS ( ) SWOT Analysis Strengths - Chronic focus, high operating margins, high return ratios, strong emerging US pipeline and one of the highest dividend payout ratios Weakness - Brazilian market remains dicey due to frequent changes in regulations and pricing. Relatively late US entrant Opportunities - The US generics space Threats - Increased USFDA scrutiny across the globe regarding cgmp issues, pricing pressure due to client consolidation in the US. Political turmoil in Brazil ICICI Securities Ltd Retail Equity Research Page 6

7 Exhibit 8: Major Facilities Conference call highlights Torrent Unichem deal Torrent Pharma has entered into a definitive binding agreement with Unichem to acquire its branded business of India and Nepal for a consideration of 3600 crore Unichem s India business comprises 120 brands in India and Nepal, manufacturing plant at Sikkim and ~3000 employees The management has communicated that the deal will be cash accretive in first year and EPS accretive in third year of acquisition Torrent will fund the acquisition with a mix of debt and equity in the ratio of 70-75:30-25 With this deal, Torrent Pharma will achieve fifth position in India and market share will increase from the current 2.4% to 3.4% (as per IMS) The acquisition will add a brand of 200 crore and three brands of 50 crore to its existing portfolio. The top brands include Losar, Unienzyme, Ampoxin, Telsar (CVS) and Vizylac Unichem has ~9% of domestic business under price control while Torrent has ~13% of domestic portfolio under price control. On a combined basis ~11% total domestic portfolio is under price control Q2FY18 highlights: R&D spend during the quarter was at 107 crore vs 111 crore in Q2FY17. It guided for 6-8% of R&D spending on total revenue On the Brazilian business front, there was a one-time charge taken for a near expiry inventory and additional discount to distributors The company has 15 external collaborations for the development of products for US markets The company expects eight to 10 annual launches in the US In Q2FY18, US base business price erosion is ~15% Excluding GST, like-to-like domestic growth was 27-28% YoY The company has launched four products in Q1FY18. Due to manufacturing issues, Torrent has not launched five approved products. The company expects to launches majority of these products by end of f FY18 US business volume increased to 82 crore tablets in H1FY18 against 60 Location Segment Regulatory Approvals Type Indrad Facility Formulations & API USFDA, WHO, cgmp, MHRA Health, Safety (ISO ),Environment System( ISO ),Quality System Management (ISO )and Energy Management System (ISO ) Formulations-Oral Dosage Form, Injectables, Freeze Dried Sterile injection API-Multi Product, Versatile Facility, Upgraded to International Standards Pithampur Facility Formulations USFDA, HC-SC (Canada), MoH (Ukraine), TGA (Australia), MoH (Yemen), MoH (Tanzania) and MoH (UAE) Baddi Facility Formulations & API Bfarm (Germany), TGA (Australia), ANVISA (Brazil), Gulf Corporation Council (GCC) Health, Safety (OHSAS ) and Environment System (ISO ) certified Sikkim Facility Formulations & API WHO Approval Oral dosage forms Dahej Facility Formulations & API USFDA, EU Germany Cream, Ointments, Liquid, Lotions & Gels Tablets, Capsules and Liquid (General formulations), ICICI Securities Ltd Retail Equity Research Page 7

8 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 (x) Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Valuation Post the Unichem acquisition, the domestic business contribution will increase to 45% from 37% in FY18E. The Unichem acquisition will catapult Torrent Pharma to fifth position in the India pharma market (IMS) and increase its domestic market share from the current 2.4% to 3.4% in the IPM. The management expects the deal to be EPS accretive in three years. While the valuation of 4x and 3.4x on FY18E and FY19E Unichem estimates, respectively, is neither cheap nor expensive, the deal will certainly strain the balance sheet (D/E to go up from 0.4x to 1.0x). However, we believe this is a fair option for capital allocation given the blurred visibility in the exports space, especially US generics. Although we have not considered the deal financials for want of completion of deal, our hypothetical calculation has led to a valuation of Exhibit 9: Valuation Table ( ) Torrent FY20 EPS 79.6 Unichem FY20 EPS (Acquired business)* -3.8 Combine FY20 EPS 75.8 Multiple (X) 18.0 Target Price 1365, Based on assumptions Exhibit 10: One year forward PE Price 26.6x 6.7x 18.1x 12.4x 9.6x [ Exhibit 11: One year forward PE of company vs. BSE Healthcare Index % discount Torrent CNX Pharma Exhibit 12: Valuation Revenues Growth Adj. EPS Growth P/E EV/EBITDA RoNW RoCE ( crore) (%) ( ) (%) (x) (X) (%) (%) FY FY18E FY19E FY20E ICICI Securities Ltd Retail Equity Research Page 8

9 Recommendation history vs. Consensus ( ) 2,000 1,800 1,600 1,400 1,200 1, Jul-15 Sep-15 Dec-15 Feb-16 May-16 Jul-16 Oct-16 Dec-16 Mar-17 May Jul-17 (%) Source: Reuters, Company, ICICIdirect.com Research Price Idirect target Consensus Target Mean % Consensus with BUY Key events Date Event Nov-09 Starts new facility to manufacture human insulin for its partner Novo Nordisk Mar-10 Signs agreement with AstraZeneca to supply 18 finished dosage formulations for emerging markets Aug-10 Enters gynaecology segment in Indian market Apr-11 Enters oncology segment in the domestic market May-13 Announces bonus shares in the ratio of 1:1 Dec-13 Launches generic Cymbalta (Duloxerine) with 180 days exclusivity in the US market Dec-13 Announces acquisition of 30 brands of Elder Pharma for 2000 crore. The brands include big brands of Shelcal and Chymoral May-15 Seals deal to acquire 100% stake in Zyg Pharma Mar-16 Dahaj (Gujarat) plant receives Establishment inspection report (EIR) from USFDA May-17 Acquires women's healthcare brand Regestrone and marketing rights of Pregachieve from Novartis AG in India Top 10 Shareholders Rank Investor Name Latest Filing Date % O/S Position Position Change 1 Torrent Group 30-Jun m 0.0m 2 HDFC Asset Management Co., Ltd. 30-Jun m 0.4m 3 Lavender Investments, Ltd. 30-Jun m 0.0m 4 Franklin Templeton Asset Management (India) Pvt. Ltd. 30-Sep m -0.2m 5 UTI Asset Management Co. Ltd. 30-Jun m 0.1m 6 Aditya Birla Sun Life AMC Limited 30-Sep m 0.1m 7 The Vanguard Group, Inc. 30-Sep m 0.0m 8 Mirae Asset Global Investments (India) Pvt. Ltd. 30-Sep m 0.0m 9 Reliance Nippon Life Asset Management Limited 30-Sep m 0.1m 10 SBI Funds Management Pvt. Ltd. 30-Sep m 0.0m Source: Reuters, ICICIdirect.com Research Shareholding Pattern (in %) Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Promoter Others Recent Activity Buys Sells Investor name Value ($) Shares Investor name Value ($) Shares HDFC Asset Management Co., Ltd. 7.3m 0.4m Baron Capital Management, Inc m -0.7m Westwood International Advisors, Inc. 3.0m 0.1m Pictet Asset Management Ltd. -6.4m -0.3m Reliance Nippon Life Asset Management Limited 2.1m 0.1m Thomas White International, Ltd. -4.9m -0.2m Templeton Investment Counsel, L.L.C. 1.5m 0.1m HSBC Global Asset Management (Hong Kong) Limited -2.0m -0.1m UTI Asset Management Co. Ltd. 1.0m 0.1m Kotak Mahindra Asset Management Company Ltd. -1.2m -0.1m Source: Reuters, ICICIdirect.com Research ICICI Securities Ltd Retail Equity Research Page 9

10 Financial summary Profit and loss statement Crore (Year-end March) FY17 FY18E FY19E FY20E Revenues 5, , , ,729.6 Growth (%) Raw Material Expenses Employee Expenses Manufacturing & Other Expenses Total Operating Expenditure EBITDA 1, , , ,893.8 Growth (%) Depreciation Interest Other Income PBT Total Tax PAT before MI Adjusted PAT , ,346.9 Growth (%) EPS (Adjusted) Cash flow statement Crore (Year-end March) FY17 FY18E FY19E FY20E Profit/(Loss) after taxation Depreciation Add: Interest Paid Other operational Activities CF from operation 1, , , ,661.2 Purchase/sales of Fixed Assets (Inc)/Dec in Investments Long Term Provision Other Investing Activities CFfrom Investing Activities Inc / (Dec) in Equity Capital Inc / (Dec) in Loan Funds Dividend and dividend tax Other Financing Activities CF from Financing Activities Cash generation during the year Op bal Cash & Cash equivalents Adjustments Closing Cash/ Cash Equivalent ,098.1 Free Cash Flow , ,261.2 Balance sheet Crore (Year-end March) FY17 FY18E FY19E FY20E Equity Capital Reserve and Surplus 4, , , ,806.5 Total Shareholders funds 4, , , ,891.1 Total Debt 2, , , ,010.1 Deferred Tax Liability Minority Interest Other LT Liabitlies & LT Provision Total Liabilities 7, , , ,470.8 Gross Block - Fixed Assets 4, , , ,069.8 Accumulated Depreciation 1, , , ,316.4 Net Block 3, , , ,753.4 Capital WIP Total Fixed Assets 4, , , ,153.4 Goodwill on Consolidation Investments Deferred tax assets Other non-current assets Cash ,098.1 Debtors 1, , , ,076.5 Loans and Advances Inventory 1, , , ,661.2 Other current assets Total Current Assets 4, , , ,801.3 Creditors 2, , , ,595.7 Provisions & other current liability Total Current Liabilities 2, , , ,249.5 Net Current Assets 1, , , ,551.8 Application of Funds 7, , , ,470.8 Key ratios (Year-end March) FY17 FY18E FY19E FY20E Per share data ( ) Reported EPS BV per share Dividend per share Cash Per Share Operating Ratios (%) Gross Profit Margins EBITDA Margins PAT Margins Inventory days Debtor days Creditor days Asset Turnover EBITDA conversion Rate 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 ICICI Securities Ltd Retail Equity Research Page 10

11 ICICIdirect.com coverage universe (Healthcare) Company I-Direct CMP TP Rating M Cap EPS ( ) PE(x) RoCE (%) RoE (%) Code ( ) ( ) ( Cr) FY16 FY17E FY18E FY19E FY16 FY17E FY18E FY19E FY16 FY17E FY18E FY19E FY16 FY17E FY18E FY19E Ajanta Pharma AJAPHA ,300 Hold Alembic Pharma ALEMPHA Hold Apollo Hospitals APOHOS ,180 Hold Aurobindo Pharma AURPHA Hold Biocon BIOCON Hold Cadila Healthcare CADHEA Hold Cipla CIPLA Hold Divi's Lab DIVLAB ,090 Hold Dr Reddy's Labs DRREDD ,520 Hold Glenmark Pharma GLEPHA Hold Indoco Remedies INDREM Hold Ipca Laboratories IPCLAB Hold Jubilant Life JUBLIF Buy Lupin LUPIN ,105 Hold Natco Pharma NATPHA 955 1,190 Buy Sun Pharma SUNPHA Hold Syngene Int. SYNINT Buy Torrent Pharma TORPHA ,365 Hold Unichem Lab UNILAB Hold 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%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more; Pankaj Pandey Head Research pankaj.pandey@icicisecurities.com ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) Mumbai research@icicidirect.com ICICI Securities Ltd Retail Equity Research Page 12

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Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. ICICI Securities Ltd Retail Equity Research Page 13