FUNDAMENTALS VALUATION

Transcription

1 FUNDAMENTALS VALUATION SANWARIA AGRO OILS LIMITED 29 th June 2011

2 ANALYTICAL CONTACT Ms. Revati Kasture BUSINESS DEVELOPMENT CONTACTS MUMBAI Mr. P. N. Satheeskumar KOLKATA Mr. Sukanta Nag CHENNAI Mr. V Pradeep Kumar pradeep.kumar@careratings.com AHMEDABAD Mr. Mehul Pandya mehul.pandya@careratings.com NEW DELHI Ms. Swati Agrawal swati.agrawal@careratings.com BANGALORE Mr. G. Sundara Vathanan sundara.vathanan@careratings.com HYDERABAD Mr. Ashwini Kumar Jani ashwini.jani@careratings.com CARE EQUITY RESEARCH OFFERS Independent Research of equities on fundamentals or valuations or both IPO Grading White Label Research Valuation of companies for Institutional Investors, Asset Managers and Corporates Sector Write-ups for Offer Documents of securities

3 Analytical Power for Investment Decisions SANWARIA AGRO OILS LTD Sanwaria Agro Oils Limited Solvent Extraction Industry 29 th June 2011 Good Fundamentals; Fairly Priced CMP: Rs / CIV: Rs. 32 Sensex: CARE Research assigns 3 /5 on fundamental grade to Sanwaria Agro Oils Limited [SAOL] CARE Research assigns a fundamental grade of 3/5 to SAOL. This indicates Good Fundamentals. The grade draws strength from the uptrend in the soya oil and soya food products industry coupled with the expansion in capacity. The soya oil consumption in India has been increasing over last many years due to the perceived health benefits of soya oils over other regularly consumed edible oils. SAOL is a well established player in the soya oil extraction industry, with efficient procurement channel, warehousing capabilities and fairly good distribution network. The company also boasts of higher profit margins in the industry. CARE Equity Research believes the increased revenue share of branded refined oil, higher operating rates coupled with SOAL s venture into the value added soya products such as textured vegetable protein (TVP), diversification into other vegetable oils and vanaspati would help SOAL earn higher margins in the future. Valuations CARE Equity Research assigns valuation grade of 3/5 to SOAL based on the current Intrinsic Value (CIV) of Rs. 32 as against Current Market Price (CMP) of 34.3, indicating Fairly Priced at CMP. The valuation is arrived using justified P/BV multiple and verified by the P/S multiple. Financial Information Snapshot (Rs. Million) FY10 FY11 E FY12 P FY13 P Operating Income 11,168 15,718 20,518 25,222 EBITDA ,908 2,201 PAT ,146 1,121 Fully Diluted EPS* (Rs.) Dividend Per Share (Rs.) P/E (times) EV/EBITDA (times) * Calculated on Current Face Value of Rs. 1/- per share 1

4 SANWARIA AGRO OILS LTD FUNDAMENTAL GRADE Good Fundamentals 3 /5 Revenues and profitability affected by agricultural commodity cycles; however uptrend in edible oil consumption to augur well Since SOAL s revenue primarily comprises of sales of de-oiled cakes and soya oil (crude and refined), the company s revenues are heavily dependent on the soya production and prices which are in turn linked to the agricultural commodities cycle both domestic and international. Soya oil is currently in an uptrend; soya oil prices surged in FY11, with refined soya oil prices in March 2011 at Rs. 63,000/ tonne - around 50% higher y-o-y and crude soya oil prices at Rs 58,300/ tonne - around 45% higher y-o-y. Although, there may be a slight correction in prices, CARE Equity Research believes the prices are expected to be on the higher side for the next two years; above the average prices in FY11. Given, the current demand supply gap of around 9 million tonnes, and a relatively lower per capita consumption of edible oil at around 14.5 kgs per annum in India, as compared with the world average of 23.9 kgs per annum, demand for edible oil is expected to rise. After considering the capacity additions of around 15,700 TPD expected in the industry by 2013, there will still to be a substantial demand supply gap. The same is expected to augur well for SOAL s business. Comfortably placed on the soya procurement front; dedicated network of agents; also adequate warehousing capacity SAOL is based in the highest soybean growing state and the proximity of the plant to the mandis results in lower procurement costs. SOAL owns sourcing licenses at over 70 mandis in MP. The company also has dedicated agents at Mandis for the procurement of soya and other agricultural produce. The company has over the years built strong relationship with the farmers by making timely payment and also procuring other crops such as wheat and other food grains during the non-soya season, ensuring income round the year for the farmer and thereby ensuring purchase of soybean seeds at competitive prices. The company also has adequate warehousing capacity at its plants, which allows it to store the excess soybean and allows optimum utilization of processing capacity. 2

5 SANWARIA AGRO OILS LTD SAOL: Raw materials procurement network Source: Company and CARE Equity Research Source: Company and CARE Equity Research Efficient revamp in the distribution channel SAOL boasts of a very efficient distribution network. SOAL s distribution channel comprises of C&F agents who sell goods to distributors and retail outlets, who in turn cater to the final consumer. The company has a network of 5 C&F agents in Madhya Pradesh, with plans to add another 10 C&F agents, set up depots and add up to 150 new dealers and distributors in FY12. SOAL has a tie-up arrangement with big retailers like Hariyali Kisan Bazar, Vishal Retail Ltd, Reliance Fresh Ltd, Pantaloon Retail Ltd, ITC Choupals, etc. for the sale of its branded oil. With the company planning to expand into the value added soya products, and other vegetable oils, these tie ups with big retailers will help the SOAL reach the customer with ease. SAOL: Distribution system Source: Company and CARE Equity Research 3

6 SANWARIA AGRO OILS LTD SAOL: Network presence Source: Company and CARE Equity Research Expansion directed towards value added products and diversification SAOL mainly derives its revenues from soya oil and de-oiled cake, the base products in the soya oil chain. The future expansion is expected to be into value added products such as like Soy Flour, Textured Vegetable Protein (TVP), etc. These are high margin products in the soya value chain hence their addition in the product mix; coupled with improvement in the operating rates would help SAOL improve their overall margins in future. Going forward the company also plans to diversify into Mustard oil extraction, Palm oil refining and Basmati rice production. Given the seasonal nature of the soybean crop, such additions to the product portfolio will help SOAL stabilize revenues throughout the year. Mustard being a Rabi crop is perfect complement for Soya which is a Kharif crop. SAOL: Capacity trend Source: Company and CARE Equity Research 4

7 SANWARIA AGRO OILS LTD New capacity would however be subject to successful placement of fresh equity SOAL s expansion plans would require a capital expenditure of around Rs. 240 crores (around Rs 160 crores for plant & machinery). The company plans to finance the same through a mix of internal accruals, promoter capital and fresh equity issue. The internal accruals are expected to be around Rs. 40 crores. The balance of Rs 200 crores is expected to be through a fresh equity issue. Although, as per the discussion with the management the capital through the fresh issue should be raised in couple of months, CARE Equity Research feels any delay in the same would affect the expansion and thereby the growth in revenue and profitability. Also, per share valuation of the fresh issue is yet to be determined, and hence the true impact of dilution cannot be ascertained completely. SAOL: Capital Expenditure Capacity In TPD Rs. Mn SEP Refinery (Soya Oil) TVP Soya Flour Refinery (Other Veg Oil) Vanaspati Source: Company and CARE Equity Research Management succession not an issue SAOL s management is well experienced in the solvent extraction industry. SAOL s present chairman and promoter, Mr Ram Narayan Agarwal, has more than 45 years of experience in the solvent extraction industry. Though a non-executive director, he still guides the management of the company and oversees all the major decisions of the company. He is assisted by his four sons, who looks after day to day workings of the company and ensures smooth running of SAOL under the guidance of Mr. Ram Narayan Agarwal. CARE Equity Research believes that management succession is not a cause of concern with SAOL owing to the personal involvement of the four sons of Mr. Ram Narayan Agarwal. 5

8 SANWARIA AGRO OILS LTD In compliance with the listing agreement 49 The company has 12 Board of Directors, with 4 of them being Executive, 2 Non-Executive and 6 Non Executive and Independent Directors. The board has formed 3 sub committees for audit, remuneration and investor grievances. The audit board has 3 members, all Independent and Non-Executive, headed by Mr. Santosh Kumari Tiwari. The remuneration and investor grievances committee too has 3 members each and is again formed of Independent and Non Executive directors. As per the annual report the same is in compliance with the listing agreement of the stock exchanges. 6

9 SANWARIA AGRO OILS LTD VALUATION GRADE Fairly Priced 3/5 CARE Equity Research values Sanwaria Agro Oils Limited (SAOL) at Rs. 32 per share According to CARE Equity Research, the Current Intrinsic Value (CIV) of SAOL stands at Rs 32 per share. This translates into one year forward Enterprise Value (EV) of Rs. 1,655.4 crores. Thus, shares of SAOL are Fairly Priced at the current market price (CMP) of Rs 34.3 per share. The CIV is calculated based on Price to Book Value (P/BV) multiple methodology CARE Equity Research has arrived at CIV of SAOL at Rs.32 per share based on P/BV multiple considering the book-value of Rs crores at the end of FY12. The cost of equity (CoE) for SAOL stands at per cent based on adjusted beta of SAOL is likely to earn return on equity (RoE) of 33.4 per cent in FY12 and long term growth (LTG) is assumed to be 2.5 per cent. Thus the justified P/BV multiple is taken as RoE less LTG over CoE less LTG, which is 2.65 times. Thus, the P/BV multiple of 2.65 times is considered by CARE Equity Research to arrive at the CIV of Rs.32 for SAOL s shares. SAOL: Cost of Equity Item Value Basis Risk Free Rate 8.25% 10 year G-Sec yields Equity Risk Premium 6.00% Beta 0.99 Adjusted Beta Cost of Equity 14.17% Source: CARE Equity Research SAOL: Valuation of equity shares Item Value Return on Equity (RoE) Long term growth (LTG) 30.9% Cost of Equity (CoE) Long term growth (LTG) 11.67% Multiple 2.65 Adjusted Book Value per share (FY12) 12.1 CIV 32 Source: CARE Equity Research The CIV of Rs. 32 per share translates into P/E multiple of 11.4 times FY12P EPS and P/S of 0.64 times FY12P Sales The CIV of Rs. 32 per share translates into price-earnings (P/E) multiple of 11.4 times the FY12P EPS of Rs per share. Similarly, the CIV of Rs. 32 per share translates into a price - sales (P/S) multiple of

10 SANWARIA AGRO OILS LTD times the sales of Rs. 50 per share. We feel the same is justified as the current net profit margin of the SOAL is around 3.4% and the current trailing P/E of industry stands at 21 times resulting in a justified trailing P/S ratio of 0.71 times sales of Rs per share in FY11E. The one year forward P/S ratio is expected to be lower and hence SOAL shares would be fairly valued at a forward P/S multiple of 0.64 times. SOAL: One year forward rolling P/E multiple SOAL: One year forward rolling P/S multiple Source: CMIE and CARE Equity Research 8

11 SANWARIA AGRO OILS LTD SOAL: Peer Comparison (Rs. Mn) Sanwaria Agro Oils Gokul Refoils KS Oils Ruchi Soya Financial Statements FY09 FY10 FY09 FY10 FY09 FY10 FY09 FY10 Net Operating Income 11, , , , , , , ,228.7 EBITDA , , , , , ,641.6 EBIT , , , ,978.0 PAT , , ,777.0 Margins EBITDA 6.0% 6.1% 3.7% 4.0% 11.3% 11.3% 2.3% 3.2% EBIT 5.1% 4.8% 2.1% 2.8% 8.9% 7.5% 1.9% 2.8% PAT 3.4% 3.5% 1.1% 1.3% 5.2% 5.2% 0.8% 1.2% Per Share Data EPS BVPS (Tangible) Valuations Ratios (Trailing) P/E EV/ EBITDA P/BV Price /Sales Market Capitalisation Profitability Ratios ROCE 17.6% 12.6% 12.4% 10.3% ROE 31.6% 10.2% 18.3% 11.4% Note: Per share multiples are adjusted for stock splits and bonus Source: Company annual reports and CARE Equity Research 9

12 SANWARIA AGRO OILS LTD COMPANY BACKGROUND Company Overview Incorporated in 1991, SAOL is a Bhopal based company involved in the production of soya bean oil and other soya related products. The company has three facilities in Mandideep, Itarsi and Betul for soybean crushing and refining of soya oil. SAOL has grown from a capacity of 200 TPD in December 1993 to 2500 TPD in FY11. SAOL: Crushing Capacity SAOL: Refining Capacity FY08 FY09 FY FY08 FY09 FY10 Mandideep Itarsi Betul Mandideep Itarsi Betul Source: Company and CARE Equity Research Product Mix Current products mix primarily comprises of de-oiled cakes, crude oil and refined oil. The branded refined oil is sold under the brands Narmada, Sulabh and Sanwaria. SOAL also sells products like lecithin, acid oil, and other by-products obtained during the soya oil refining process. De-oiled cakes form the largest share in revenue both in quantity and value. Refined soya oil on the other hand is the next most important product in terms of value however lower in terms of quantity when compared with crude soya oil. Going forward the company is planning to enter into value added soya products like soya flour, soya milk, soya nugget, soya tofu and other high protein soya meals. 10

13 SANWARIA AGRO OILS LTD SAOL: Product Mix Soyabean Crude Oil De-Oiled Cake Soya Milk (Proposed) Tofu /Soya Paneer (Proposed) Refined Oil Lecithin Acid Water Oiled Sand Soya Flour (Proposed) Soya Nuggets (Proposed) Source: Company and CARE Equity Research Promoters SAOL is a centrally managed company and has a management well experienced in the business. SAOL s chairman Mr. Ram Narayan Agarwal has more than 45 years of experience in the edible oil industry. He is assisted by his four sons, Mr Anil Agarwal, Mr Ashok Agarwal, Mr Satish Agarwal and Mr. Gulab Chand Agarwal. SAOL s important decisions are still taken under the mentorship of Mr Ram Narayan Agarwal. SAOL: Group Structure Source: Company and CARE Equity Research 11

14 SANWARIA AGRO OILS LTD SNAPSHOT OF THE INDUSTRY Edible oil consumption in India is expected to continue to grow The domestic consumption of edible oils is expected to rise with rise in the disposable incomes and changing food habits of Indian consumers. The per capita edible oil consumption in India is around 14.5 kgs per annum, much lower when compared with the world average of 23.9 kgs per annum. The total edible oil consumption in India is around 17 million tonnes, with around 9 million tonnes of the demand currently being met by imports. Although a total of around 15,700 TPD of capacity expansion is expected in the edible oil industry by the end of 2013, the same would not be sufficient to meet the demand supply gap, which will continue to persist. Edible Oils: Capacity Expansion Projects Company Location Product Capacity Units Emami Biotech Ltd Krishnapatnam Palm Oil 1000 TPD Krishnapatnam Sunflower Oil 200 TPD Pipapav Palm Oil 1000 TPD Pipapav Sunflower Oil 300 TPD Jaiprakash Associates Ltd Rewa Mustard Oil 1.0 LTA Rewa Soya Oil 1.0 LTA Adani Wilmar Ltd Mundra Edible Oil 4000 TPD Liberty Oil Mills Ltd Bhuj Refined Oil 1200 TPD Nellore Refined Oil 1200 TPD Dakshina Refined Oil 1200 TPD Gokul Refoils & Solvents Ltd. MAH Edible Oil 1000 TPD AP Edible Oil 1000 TPD Ruchi Soya Industries Ltd Sanwaria Agro Oils Ltd Haldia, Kandla, Mumbai Mandideep, Itarsi Palm Oil Soya Oil Refined Oil 1.1 MTA TPD TPD Note: TPD Tonnes Per Day, MTA Million Tonnes per Annum, LTA Lakh Tonnes per Annum Source: CMIE and CARE Research Shifting focus to Soya bean oil Groundnut, mustard and soya are the three preferred oils used in India. While, mustard oil continues to be the widest consumed edible oil in India with a share of around 41 per cent, soya is the next most used source of edible oil around 27 per cent share, and there has been an increase the consumption of soya oil over the years. 12

15 SANWARIA AGRO OILS LTD This can also be seen from the shift share in production of soya in the oilseeds. The production of soya oilseeds is estimated to be around 9.5 million tonnes in FY11 as against 5.38 million tonnes in FY97. Shift in share of soybean in oilseeds production 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2% 1% 22% 37% 27% 28% 35% 23% (E) Castor Linseed Niger Safflower Sunflower Soybean Sesamum Rapeseed & Mustard Groundnut Source: Solvent Extractors Association of India [SEA] and CARE Research However, the increase in the production of soybean is mainly supported by the increase in area under production for the soybean seeds. The yield on the other hand hasn t improved as fast as production and it still remains highly volatile and cyclical in nature. SAOL: Soybean area under cultivation and yield Area (Million Hectare) Yield (Kg/Hectare) Source: Department of Agriculture and Co-operation, CARE Research 13

16 SANWARIA AGRO OILS LTD Soya bean: Industry characterized by high cyclicality in production and prices Akin to most agricultural commodities, both the production and prices of Soybean is highly cyclical in nature. The soya bean crop cycle is around 2-3 years and a trend reversal can generally be seen at the end of every two years. Soya bean prices peaked out in FY09 and then again decreased in FY10. In FY11, soya bean prices have increased another per cent. Soya-bean seeds: production and prices trend Mn Tonnes Rs. / Tonne FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Soybean production Soyabean seed prices Source: Solvent Extractors Association of India [SEA] and CARE Research Domestic prices closely linked to international prices India is one of the top producer of soybean and exporter of soybean meal. But due to the huge domestic market of vegetable oil, the country still imports a sizeable portion to meet the local demand. Since imports of vegetable oilseeds are banned in India, the imports are in the form of crude oil. India is the second largest importer of vegetable oils in the world market after China. 14

17 Mar/10 Apr/10 May/10 Jun/10 Jul/10 Aug/10 Sep/10 Oct/10 Nov/10 Dec/10 Jan/11 Feb/11 Mar/11 SANWARIA AGRO OILS LTD India: Soya Bean Oil Imports Soya Bean oil imports (Mn MT) Source: USDA and CARE Research With high dependency on imports, the domestic oil prices too are closely linked with international oil prices. Thus, a bumper domestic crop benefits the manufacturer because of its negligible effect on the global prices of oil. Also, a failed crop season exerts high pressure, due to the lesser pass on of the costs on account of no effect on global prices. Soya oil prices: Domestic and International Domestic prices International prices Source: CMIE and CARE Research 15

18 SANWARIA AGRO OILS LTD TVP: the road ahead Textured Vegetable Protein or TVP as a product is fast picking up in India. TVP is made from the de-oiled cake which is a left over after the oil is extracted from the soya seeds. The TVP trades around Rs 35,000 /tonne making it almost one half of the price of the Soya Refined oil. In soya bean oil extraction process, around 18 per cent of the weight of the seeds is extracted as oil and remaining 82 per cent is processed for de-oiled cake. Thus, the revenues from de-oiled cake and TVP are generally around 60 per cent of the total revenues of a soya bean oil manufacturer. TVP is also a very high margin and profitable business for a soya bean oil manufacturer. Most of the soya oil manufacturers are now foraying into TVP segment due to the high profitability and its increasing consumption trend in India. 16

19 SANWARIA AGRO OILS LTD FINANCIAL STATISTICS Income Statement (Rs Million) FY08 FY09 FY10 FY11 E FY12 P FY13 P Operating Income 9,381 11,114 11,168 15,718 20,518 25,222 EBITDA ,908 2,201 Depreciation and amortisation EBIT ,826 2,049 Interest PBT ,520 1,659 Ordinary PAT ,146 1,121 PAT ,146 1,121 Fully Diluted Earnings Per Share* (Rs.) Dividend, including tax * Calculated based on ordinary PAT on Current Face Value of Rs. 1/- per share Balance Sheet (Rs Million) FY08 FY09 FY10 FY11 E FY12 P FY13 P Tangible Net worth 742 1,045 1,408 1,908 4,953 6,061 Debt (incl. Preference Shares) 1,933 1,587 2,722 4,342 3,952 4,178 Deferred Liabilities / (Assets) Capital Employed 2,793 2,796 4,304 6,420 9,149 10,518 Net Fixed Assets, incl. Capital WIP, net of reval reserve ,517 2,373 Investments Loans and Advances Inventory 1, ,884 3,126 4,026 4,983 Receivables ,292 1,686 2,073 Cash and Cash Equivalents ,283 1,578 Current Assets, Loans and Advances 2,518 2,316 3,781 6,023 7,130 8,768 Less: Current Liabilities and Provisions Total Assets 2,793 2,796 4,304 6,420 9,149 10,518 Ratios based on Financials FY08 FY09 FY10 FY11 E FY12 P FY13 P Growth in Operating Income 110.6% 18.5% 0.5% 40.7% 30.5% 22.9% Growth in EBITDA 243.6% -7.4% 1.0% 7.3% 162.5% 15.4% Growth in PAT 254.5% -12.2% 2.0% 37.7% 114.4% -2.2% Growth in EPS 77.2% -56.1% 2.0% -31.2% 81.8% -2.2% EBITDA Margin 7.7% 6.0% 6.1% 4.6% 9.3% 8.7% PAT Margin 4.6% 3.4% 3.5% 3.4% 5.6% 4.4% RoCE 34.8% 22.0% 17.6% 12.5% 23.5% 20.8% RoE 78.5% 42.6% 31.6% 32.2% 33.4% 20.3% Net Debt-Equity (times) Interest Coverage (times) Current Ratio (times) Inventory Days Receivable Days Price / Earnings (P/E) Ratio Price / Book Value(P/BV) Ratio Enterprise Value (EV)/EBITDA Source: Company, CARE Equity Research 17

20 SANWARIA AGRO OILS LTD EXPLANATION OF GRADES CARE Equigrade Grid (CEG) Through CEG, CARE Equity Research addresses two critical factors considered by an investor while investing in a particular company s equity shares: 1. Fundamentals: Whether the company is fundamentally sound with respect to its business, its financial position, its management and its prospects. 2. Valuation: What is the Current Intrinsic Value (CIV) of the stock and how it compares vis-a-vis its Current Market Price (CMP) These factors are answered assigning quantitative grades to both these parameters. CEG is the snapshot of Fundamental Grade and Valuation Grade assigned by CARE Equity Research. Fundamental Grade This grade represents how sound the company is fundamentally, vis-à-vis other listed companies in India. This grade captures: 1. Business Fundamentals and Prospects 2. Financial Soundness 3. Management Quality 4. Corporate Governance Practices The grade is assigned on a five-point scale as under: CARE Fundamental Grade Evaluation 5/5 Strong Fundamentals 4/5 Very Good Fundamentals 3/5 Good Fundamentals 2/5 Modest Fundamentals 1/5 Weak Fundamentals Valuation Grade This grade represents the potential value in the company s equity share for the investor over a 1 year period. The Current Intrinsic Value (CIV) or the price arrived by CARE Equity Research on fundamental basis is compared with the current market price (CMP) of the stock and the grade is assigned based on the gap between CIV and CMP of the stock. 18

21 SANWARIA AGRO OILS LTD The grade is assigned on a five-point scale as under: CARE Valuation Grade 5/5 4/5 3/5 2/5 1/5 Evaluation Considerable Upside Potential (>25% upside from CMP) Moderate Upside Potential (10-25% upside from CMP) Fairly Priced (+/- 10% from CMP) Moderate Downside Potential (10-25% downside from CMP) Considerable Downside Potential (>25% downside from CMP) Grading determination is a matter of experienced and holistic judgment, based on relevant quantitative and qualitative factors of the company in relation to other listed companies. DISCLOSURES Each member of the team involved in the preparation of this grading report, hereby affirms that there exists no conflict of interest that can bias the grading recommendation of the company. This report has been sponsored by the company. DISLCLAIMER This report is prepared by CARE Research, a division of Credit Analysis & REsearch Limited [CARE]. CARE Research has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain or from sources considered reliable. However, neither the accuracy nor completeness of information contained in this report is guaranteed. CARE Research operates independently of ratings division and this report does not contain any confidential information obtained by ratings division, which they may have obtained in the regular course of operations. Opinions expressed herein are our current opinions as on the date of this report. CARE s valuation of the security is mainly based on company specific fundamental factors. Equity prices are affected by both fundamental factors as well as market factors such as liquidity, sentiment, broad market direction etc. The impact of market factors can distort the price of the security thereby deviating from the intrinsic value for extended period of time. This report should not be construed as recommendation to buy, sell or hold a security or any advice or any solicitation, whatsoever. It is also not a comment on the suitability of the investment to the reader. The subscriber / user assumes the entire risk of any use made of this report or data herein. CARE specifically states that it or any of its divisions or employees have no financial liabilities whatsoever to the subscribers / users of this report. This report is for personal information only of the authorised recipient in India only. This report or part of it should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person, especially outside India or published or copied for any purpose. Published by Credit Analysis & REsearch Ltd., 4th Floor Godrej Coliseum, Off Eastern Express Highway, Somaiya Hospital Road, Sion East, Mumbai CARE Research is not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this report and especially states that CARE (including all divisions) has no financial liability whatsoever to the user of this product. This report is for the information of the intended recipients only and no part of this report may be published or reproduced in any form or manner without prior written permission of CARE Research. 19

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