Aster DM Healthcare Limited

Transcription

1 IPO Review Rating matrix Rating : Unrated Issue Details Issue Opens 12-Feb-18 Issue Closes 15-Feb-18 Issue Size ( crore) Price Band ( ) No. of Shares on Offer (crore) 1.3 Fresh issue ( crore) QIB (%) 50.0 Non-Institutional (%) 15.0 Retail (%) 35.0 Objects of the Issue The Offer comprises of the Fresh Issue and the Offer for Sale. Object of the fresh issue are as follows: 1. Repayment and/or pre-payment of debt 2. Purchase of medical equipment 3. General corporate purposes Shareholding Pattern Pre-Offer Post-Offer Promoters & Promoters Group Others Financial Summary ( crore) FY15 FY16 FY17 Total Revenues 3, , ,931.3 EBITDA EBITDA Margins Adj PAT Adj. EPS Research Analyst Siddhant Khandekar siddhant.khandekar@icicisecurities.com Mitesh Shah mitesh.sha@icicisecurities.com Harshal Mehta harshal.mehta@icicisecurities.com February 9, 2018 Price band Blended model focusing on Gulf and India Aster DM Healthcare Limited (Aster) is one of the largest private healthcare service providers which operate in multiple GCC (Gulf Cooperation Council) states and in India. The company has a diversified portfolio of healthcare facilities, consisting of 9 hospitals with a total capacity of 867 beds, 90 clinics and 206 retail pharmacies in the GCC states, 10 multi-specialty hospitals with a total capacity of 3887 beds and 7 clinics in India, and 1 clinic in the Philippines as of 1HFY18. It provides healthcare services in GCC states through various brands such as Aster, Medcare and Access. In India the company operates under the Aster, MIMS, Ramesh or Prime brands. Five of company s hospitals (four in GCC states and one in India) one clinic and one diagnostic centre in the GCC states have obtained JCI accreditation. Revenues in FY17 stood at 5931 crore with EBITDA margins of 5.6%. GCC states contribute ~84% of the total revenues. Key Strengths Aster DM Healthcare Limited Long standing presence in GCC and India with strong brand equity Aster is well placed to capitalise on the expected growth in healthcare sector in the GCC states due to its early mover advantage, strong brand presence using a targeted strategy of offering different brands to cater to diverse group of customers and existing track record. Further, the presence of pharmacies at multiple locations across various GCC states also enhances the visibility of the company s brands. The company s long-standing presence in the GCC states has helped it to gain an understanding of the respective markets and the regulatory environments and has contributed towards the success of GCC operations. Track record of operating and financial performance and growth The company has grown from 149 operating facilities in 5 countries, including 10 hospitals in FY13 to 323 operating facilities in 9 countries, including 19 hospitals in 1HFY18. The company has increased the bed capacity of hospitals from 1,419 beds in FY13 to 4,754 beds in FY17. The company s operational beds increased from 1,309 in FY13 to 3,584 in 1HFY18. The company s ARPOB in the GCC states increased from in FY13 to in FY17 and in 1HFY18 and the company s ARPOB in India increased from 8130 to and during the same period. The number of its clinics in GCC states increased from 41 in FY13 to 90 as of 1HFY18, and the number of retail pharmacies increased from 98 in FY13 to 206 in 1HFY18. Key concerns 1) The company s revenues are highly dependent on GCC states, 2) Foreign ownership restrictions in GCC states 3) Certain licenses in the GCC may be held to contravene legal requirements 4) Certain nominee arrangements lack certain provisions in GCC and 5) Growth depends on new facilities Priced at 37x FY17 EV/EBITDA At the upper band of 190 the stock is available at 36.6x EV/EBITDA (FY17 EBITDA at crore)

2 Exhibit 1: Key Financials (Year End March) FY15 FY16 FY17 1HFY18 Revenues ( crore) EBITDA ( crore) Net Profit ( crore) EPS ( ) P/E (x) NA NA EV/EBITDA (x) NA RoCE (%) NA RoE (x) NA NA Page 2

3 Company Background Aster DM Healthcare Limited (Aster) commenced its operations in 1987 as a single doctor clinic in Dubai established by Dr. Azad Moopen. The company was incorporated in 2008 in a reorganisation to facilitate the growth of operations, subsequent to which operations in the GCC states and India were consolidated. Aster is one of the largest private healthcare service providers which operate in multiple GCC states based on numbers of hospitals and clinics besides an emerging presence in India. The company currently operates in all of the GCC states, which comprise the United Arab Emirates, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain, Jordan (which is classified as a GCC state as part of the company s GCC operations), India and the Philippines. Its GCC operations are headquartered in Dubai, United Arab Emirates and Indian operations are headquartered in Kochi, Kerala. Aster operates in multiple segments of the healthcare industry, including hospitals, clinics and retail pharmacies and provide healthcare services to patients across economic segments in several GCC states through various brands such as Aster, Medcare and Access. Aster and other brands are widely recognised in the GCC states both by healthcare professionals and patients. The company has diversified portfolio of healthcare facilities, consisting of 9 hospitals, 90 clinics and 206 retail pharmacies in the GCC states, 10 multi-specialty hospitals and 7 clinics in India, and 1 clinic in the Philippines as of 1HFY18. According to the Frost & Sullivan Report, the company operates the largest chain of retail pharmacies in the UAE based on number of centres as of FY17. The company s hospitals in India are located in Kochi, Kolhapur, Kozhikode, Kottakkal, Bengaluru, Vijayawada, Guntur, Wayanad and Hyderabad and are generally operated under the Aster, MIMS, Ramesh or Prime brands. Its clinics in India are located at Kozhikode, Eluru and Bengaluru. It had 17,408 employees as of 1HFY18, including 1,417 full time doctors, 5,797 nurses, 1,752 paramedics and 8,442 other employees (including pharmacists). In addition, it had 891 fee for service doctors working across various specialities in hospitals in India. A majority of The company s hospitals and clinics provide secondary and tertiary healthcare services to patients. In addition to providing core medical, surgical and emergency services, some of the company s hospitals provide complex and advanced quaternary healthcare in various specialties, including cardiology, oncology, radiology, ophthalmology, neurosciences, paediatrics, gastroenterology, orthopaedics and critical care services. In all five of the company s hospitals, one clinic and one diagnostic centre have obtained Joint Commission International (JCI) accreditation. Of the total revenues from operations for 1HFY18, hospital segment accounted for 49.3%, clinic segment accounted for 25.9% and retail pharmacy segment accounted for 24.8%. The company s operations in India, which primarily consist of hospitals, accounted for 18.6% of total revenues from operations for 1HFY18. Page 3

4 Exhibit 2: geographies, segments and brands Source: Company presentation, ICICIdirect.com Research Exhibit 3: Hospitals It has nine hospitals in the GCC states (five in the UAE, two in Oman, one in Qatar and one in Saudi Arabia), with a total of 867 installed beds, and 10 hospitals in India, with a total of 3,887 installed beds as of September 30, In addition, Medcare Hospital in Sharjah, UAE and Aster Hospital in Doha, Qatar became operational in April 2017 and June 2017 respectively. Hospitals Locations Since Type of Hospitals Installed Bed capacity GCC states Medcare Hospital Dubai, UAE Operational 2007Multi-specialty 63 Al Raffah Hospital Muscat, Oman Operational 2009Multi-specialty 86 Al Raffah Hospital Sohar, Oman Operational 2010Multi-specialty 67 Medcare Orthopaedics and Spine HDubai, UAE Operational 2012Speciality 33 Aster Hospital Mankhool Dubai, UAE Operational 2015Multi-specialty 114 Medcare Women and Child Hospit Dubai, UAE Operational 2016Multi-specialty 101 Medcare Hospital Sharjah, UAE Operational 2017Multi-specialty 124 Sanad Hospital Riyadh, Kingdom of Saudi Increased intere Multi-specialty 218 Aster Hospital Arabia Doha, Qatar Operational 2017Multi-specialty 61 India Aster Aadhar Hospital Kolhapur, Maharashtra Acquired 2008, Multi-specialty 175 new facility MIMS Kozhikode Kozhikode, Kerala Acquired 2013 Multi-specialty 678 MIMS Kottakkal Kottakkal, Kerala Acquired 2013 Multi-specialty 229 Aster CMI Bengaluru, Karnataka Operated and m Multi-specialty 509 Aster Medcity Kochi, Kerala Operational 2014Multi-specialty 670 Prime Hospitals Ameerpet Hyderabad, Telangana Acquired 2014 Multi-specialty 158 DM WIMS Wayanad, Kerala Operated and m Multi-specialty 880 Dr. Ramesh - Guntur Guntur, Andhra Pradesh Acquired 2016 Multi-specialty 350 Dr. Ramesh Main Centre Vijaywada, Andhra Pradesh Acquired 2016 Multi-specialty 184 Dr. Ramesh Labbipet Vijaywada, Andhra Pradesh Acquired 2016 Multi-specialty 54 To meet the increasing demand, the company is in the process of building or expanding 10 hospitals which are expected to add a total of approximately 1,727 beds as set out in the table below. Page 4

5 Exhibit 4: Up coming Facilities Hospitals Locations Type Expected Completion Type of Hospital Planned Beds Stage GCC states Aster Hospital Dubai, UAE Greenfield 2018 Multi-specialty 117 Construction Aster Hospital Dubai, UAE Greenfield 2018 Multi-specialty 41 Construction Aster Hospital Sharjah, UAE Greenfield 2019 Multi-specialty 80 Design Medcare Hospital Dubai, UAE Greenfield 2020 Multi-specialty 48 Planning Sanad Hospital Riyadh, Saudi Arabia Expansion 2018 Multi-specialty 69 Construction India MIMS Kannur Kannur, Kerala Greenfield 2018 Multi-specialty 200 Construction MIMS Pantheerankavu Kozhikode, Kerala Expansion 2020 Multi-specialty 200 Initial Planning RSST Hospital Bengaluru, Karnataka O & M 2018 Multi-specialty 223 Initial Planning MIMS Kozhikode Kozhikode, Kerala Expansion 2020 Multi-specialty N/A Initial Planning Aster Capital Trivandrum, Kerala Greenfield 2021 Multi-specialty Phase I 510; Phase II 239 Acquired land Page 5

6 Key strengths Long standing presence in GCC and India with strong brand equity The company is one of the largest private healthcare service providers which operate in multiple GCC states based on numbers of hospitals and clinics, according to the Frost & Sullivan Report, and an emerging healthcare player in India. The company commenced operations in 1987 as a single doctor clinic in Dubai established by its founder, Dr. Azad Moopen. The management believes that it is well placed to capitalise on the expected growth in healthcare sector in the GCC states due to the its early mover advantage, strong brand presence using a targeted strategy of offering different brands to cater to diverse group of customers and existing track record. The company s Aster and Medcare brands address the needs of the upper and middle income segments in the GCC states respectively, while Access brand offers affordable healthcare services to blue collar expatriate workers and the lower income segment in the GCC states. Further, the presence of pharmacies at multiple locations across various GCC states also enhances the visibility of the company s brands. The company s long-standing presence in the GCC states has helped it to gain an understanding of the respective markets and the regulatory environments and has contributed towards the success of GCC operations. In India the company operate under Aster, MIMS, Ramesh, Prime, Aster Aadhar and Aster CMI brands. In FY15, it launched Aster Medcity in Kochi, Kerala, which is intended to be positioned as a destination for medical value travel from select markets including India and countries across the GCC states, the MENA region and South Asia. Well diversified portfolio to leverage multiple market opportunities The company has an established presence across multiple geographies, multiple healthcare delivery verticals and serves to multiple economic segments. It provides healthcare services in the UAE, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain, which comprise all of the GCC states and in the Indian cities of Kochi, Kolhapur, Kozhikode, Kottakkal, Bengaluru, Vijayawada, Guntur, Wayanad and Hyderabad. It clinic in Manila, Philippines commenced operations in August The company operates in multiple formats providing a wide range of services through diverse network of 9 hospitals, 90 clinics and 206 retail pharmacies in the GCC states, 10 multi-specialty hospitals and 7 clinics in India, and 1 clinic in the Philippines as of 1HFY18. Exhibit 5: Revenues based on Region and Business Segments cr FY15 FY16 FY17 1HFY18 Region GCC states India Other regions (Philippines) Total Business segments Hospitals Clinics Pharmacies Others Total The company s GCC operations encompass all levels of healthcare services from primary to tertiary and position it to be a one-stop destination for patients needs. In addition to providing core medical, surgical and emergency services, it also offers advanced surgical treatments in various specialties, including cardiology, oncology, Page 6

7 radiology, neurosciences, paediatrics, gastroenterology, orthopaedics and critical care services. As it healthcare network serves a diverse range of patient needs and is spread across a large region, it believes that this model and large ecosystem has enabled it to expand the company s reach and leverage market opportunities to gain access to a larger patient base and achieve synergies across verticals and geographies, while efficiently deploying resources. This has helped it to improve operational efficiencies, by allowing centralise certain key functions, such as finance, sourcing, distribution, branding and marketing. It is in the process of centralising information technology systems in order to deliver better healthcare services to patients. Provision of high quality healthcare service The company s focus on quality is evidenced by the quality certifications and accreditations that it facilities have obtained from various local and international accreditation agencies, which include accreditation from the JCI. Five of the company s hospitals, one clinic and one diagnostic centre in the GCC states, and Aster Medcity in Kochi, Kerala, have obtained such accreditation. JCI accreditation for Medcare Dubai hospital was obtained in only 8 months of its commissioning. It has received JCI accreditation for Medcare Orthopaedics and Spine Hospital in Dubai, Aster Hospital Mankhool in Dubai, Medcare Hospital in Dubai, Al Raffah Hospital in Sohar and Medinova Diagnostic Centre (the company s first central laboratory clinic in the GCC states) in Dubai. In the GCC states, Medcare Hospital and Aster pharmacy retail chain received quality and service awards, respectively, from the Dubai Department of Economic Development in Its multi-specialty hospital MIMS Hospital in Kozhikode received accreditation by the NABH in MIMS hospital in Kottakkal, Aster Aadhar hospital in Kolhapur, Aster Medcity in Kochi, and both Dr. Ramesh Hospitals in Vijayawada and Dr. Ramesh Hospital in Guntur have also received NABH accreditation. Sanad Hospital in Saudi Arabia has obtained an accreditation from the Saudi Central Board for Accreditation for Healthcare Institutions, or CBAHI. Ability to attract and retain high quality medical professionals The company s brand, long-standing presence, competitive compensation and incentives, investment in medical technology and advanced equipment, continuous expansion and reputation have helped the company to attract and retain well-known doctors and other health care professionals from an international and diverse talent pool for its facilities. In addition to attracting doctors and other medical professionals It has a track record in building long-term relationships with doctors and other medical and non-medical professionals through various incentive programs such as domestic and international conference travel policies and sponsored training and education assistance policy. Its operations in India enable it to source doctors, nurses and other medical professionals from India to its operations in the GCC states. As of 1HFY18, 60.74% of the company s doctors and 64.47% of non-medical professionals in the GCC states are of Indian nationality. Ability to capitalise market conditions, trends and opportunities The management believes that the company s ability to identify, adapt to and capitalise on market developments, as well as flexible business model have enabled it to stay at the forefront of market trends and develop a strong track record of achieving profitability and growth. For instance, the company s strong execution capability and flexibility is reflected in the turnaround of Sanad Hospital in Saudi Arabia during 2HFY18, as it shifted focus to serving private insurance and walk-in cash patients, in light of the Page 7

8 delay in collection of pending receivables from the government sector and the significant supply and demand gap in private healthcare. As a result, the combined number of inpatients and outpatients from private insurance and walk-in cash patients for Sanad Hospital increased from 2,816 and 94,283 respectively in FY16 to 5,370 and 120,383 respectively in FY17, and revenue from private insurance patients and walk-in cash patients increased to 50% in FY17 from 17% in FY16. The transition in the company s business in Saudi Arabia was further boosted by the rapid empanelment with key private insurers and a focused marketing campaign. The company also has a proven track record of identifying and capitalizing on emerging technology trends in the healthcare services industry. By tracking technological innovations and medical developments across the world, it continuously invests in medical technologies, facilities and equipment in order to offer high quality healthcare services to the patients and to expand and improve on its range of healthcare services. The company is at the forefront of market trends in the healthcare services industry and the provision of advanced treatment procedures and complex surgeries such as cardiothoracic surgeries, neuro surgeries, nephron surgeries and orthopaedic surgeries Track record of operating and financial performance and growth The company has grown from 149 operating facilities in 5 countries, including 10 hospitals in FY13 to 323 operating facilities in 9 countries, including 19 hospitals in 1HFY18. The company has increased the bed capacity of hospitals from 1,419 beds in FY13 to 4,754 beds in FY17. The company s operational beds increased from 1,309 in FY13 to 3,584 in 1HFY18. The company s ARPOB in the GCC states increased from in FY13 to in FY17 and in 1HFY18 and the company s ARPOB in India increased from 8130 to and during the same period. The number of its clinics in GCC states increased from 41 in FY13 to 90 as of 1HFY18, and the number of retail pharmacies increased from 98 in FY13 to 206 in 1HFY18. It assesses the likely profitability of hospitals before it constructs or acquires them. For example, the company s MIMS hospital commenced operations in 2001 with 200 beds and generated positive PAT in FY04. Aster Hospital Mankhool commenced operations in 2015 and achieved positive Adjusted EBITDA in 7 months after commencing operations. Exhibit 6: ARPOB ARPOB FY13 FY17 1HFY18 CAGR (%) FY13-17 GCC ( /per day) India ( /per day) Page 8

9 Financials Exhibit 7: Revenue ( crore) FY15 FY16 FY17 1HFY18 Revenues Exhibit 8: EBITDA & EBITDA Margins ( crore) (%) FY15 FY16 FY17 1HFY18 EBITDA EBITDA Margins (%) 0 Exhibit 9: EBITDA & EBITDA Margins ( crore) (%) FY15 FY16 FY17 1HFY18 EBITDA EBITDA Margins (%) 0 Page 9

10 Exhibit 10: Adj Net Profit ( crore) FY15 FY16 FY17 1HFY Net Profit Page 10

11 (%) Exhibit 11: Return Ratios FY13 FY14 FY15 FY16 FY RoCE (%) RoE (%) Key concerns The company s revenues are highly dependent on GCC states The company s operations are principally located in the GCC states, where it generated 83.95% and 81.36% of total revenue for FY17 and 1HFY18, respectively. The company s results of operations are, and are expected to continue to be, significantly affected by foreign ownership restrictions, financial, economic and political developments in or affecting the GCC states and, in particular, by the level of economic activity in the UAE. If the economy of the GCC states decline, or if Government intervention in the economy restricts or limits economic growth, this could have a material adverse effect on the company s business, financial condition and results of operations. Foreign ownership restrictions in GCC states The company s operations are principally located in the GCC states, where it generated 83.95% and 81.36% of total revenues for FY17 and 1HFY18, respectively. The company is subject to foreign ownership laws which provide that nationals must hold a majority of the shares of its subsidiaries incorporated in each of the UAE, Kuwait, Qatar and Jordan. In GCC states which restrict foreign ownership, it has typically entered into shareholder arrangements with local shareholders which are intended to provide with management control and a majority of the dividends or profits from its subsidiary notwithstanding minority legal shareholding; the local shareholder acts as nominee for the purpose of fulfilling foreign ownership requirements, is only entitled to an annual fee (irrespective of actual profits) and is not involved in the company s management. If it is unable to enforce rights as a beneficial shareholder as a result of a conflict between the shareholders agreement and the constitutional documents of the company and local laws provide that the constitutional documents prevail, the company s inability to enforce the shareholders agreement may adversely affect its business and results of operations Certain licenses in the GCC may be held to contravene legal requirements The licenses required for the operation of certain of medical facilities and pharmacies in the GCC states may be held to contravene legal requirements and there can be no assurance that the relevant authorities will continue to authorise such licenses, allow such licenses to be renewed or permit such licenses to be applied to additional medical facilities or pharmacies. The healthcare industry is highly regulated and any inability to hold the requisite Page 11

12 licenses for operations could have a material adverse effect on the business, financial condition and results of operations. Certain nominee arrangements lack certain provisions in GCC There are certain provisions commonly provided for under agreements similar to the UAE Agreements that protect interests of the foreign shareholder in a UAE registered company. These provisions are usually included in the constitutional documents of such companies (to the extent allowed under UAE law) as well as addressed under the UAE Agreements entered into between the foreign shareholder and the UAE shareholder, The constitutional documents of the UAE Trust Entities do not include similar provisions. As a result, there could be a material adverse effect on the company s business in the UAE, notably if the sponsor nominee encumbers the shares he holds or if its ability to repatriate the annual dividends is impeded, which in turn could have a material adverse effect on the company s cash flow. Growth depends on new facilities Aster is currently planning to construct, develop or expand five hospitals and a number of clinics and retail pharmacies in the GCC states and five hospitals in India. The company s ability to build and operate new hospitals, clinics and stand-alone retail pharmacies is subject to various factors that may involve delays or problems, including the failure to receive or renew regulatory approvals, constraints on human and capital resources, design, building and development risk, the unavailability of equipment or supplies or other reasons, events or circumstances. The company s projects may incur significant cost overruns and may not be completed on time or at all. Any delay in the completion of expansion projects may have a material adverse effect on growth strategy and, therefore, on business, financial condition and results of operations Page 12

13 Financial summary FY17/CY16 Profit and loss statement crore Mcap Revenue OPM (%) NPM (%) ROE (%) ROCE (%) P/S (x) PE (x) GSK Pharma Crore 20,886.9 Cash flow 2,926.5 statement Crore 62.1 (Year-end March) FY15 FY16 Pfizer FY17 1HFY18 7,621.8 (Year-end 1,966.3 March) FY FY FY HFY Revenues 3, , ,931.3 Abbott 3, ,948.1 Profit/(Loss) 2,902.6 after taxation Growth (%) 1, Sanofi 13.0 NA 9,327.3 Add: Depreciation 2,368.6 & Amortization Raw Material Expenses 1, , ,887.3 Novartis ,851.7 Net Increase in Current Assets , Employee Expenses 1, , ,054.5 Merck 1, ,812.7 Net Increase in Current Liabilities Other Manufacturing Expenses , ,657.3 Ajanta Pharma ,825.1 Others 1, Total Operating Expenditure 3, , ,599.2 FDC 2, ,327.3 CF from operating 1,051.0 activities EBITDA Eris * (Inc)/dec in Fixed Assets , Growth (%) NA (Inc)/dec in Investments Interest Source: Bloomberg, 89.3 RHP, ICICIdirect.com Others Research; * at the upper band 12.8 Objects 12.2 of issue 5.8 The 50.3 Depreciation Other Income PBT before Exceptional Items Offer comprises of CF the from Fresh investing Issue activities and the Offer for Sale Object -1,151.2of the fresh 36.6 issue 18.8are as follows: Inc / (Dec) in 1. Equity Repayment Capital or prepayment ,719.6 in full, or 7.8in part of certain loans Inc availed / (Dec) in by Debt the Company; Purchase of medical Less: Forex & Exceptional Items Dividend & Dividend Tax equipment for existing, recently set up and upcoming hospitals; 3. PBT Others , Purchase of interiors, furniture, and allied infrastructure for upcoming Total Tax CF from financing activities hospitals; and 4. General corporate purposes PAT before MI Net Cash flow Minority Interest Opening Cash PAT Closing Cash Adjusted PAT Source: Company RHP, ICICIdirect.com Research Growth (%) NA EPS EPS (Adjusted) Source: Company RHP, ICICIdirect.com Research Balance sheet Crore (Year-end March) FY15 FY16 FY17 1HFY18 Equity Capital Reserve and Surplus 1, , ,409.8 Total Shareholders fund 1, , ,813.0 Total Debt , , ,870.5 Deferred Tax Liability Minority Interest Other liabilities Source of Funds 3, , , ,526.1 Gross Block - Fixed Assets 2, , , ,064.7 Accumulated Depreciation ,099.1 Net Block 1, , , ,965.6 Capital WIP Net Fixed Assets 1, , , ,198.9 Net Intangible Assets Goodwill on Consolidation Investments Inventory Cash Debtors , , ,488.2 Loans & Advances & Other CA Total Current Assets 1, , , ,586.6 Creditors Provisions & Other CL Total Current Liabilities , , ,568.0 Net Current Assets , , ,018.6 LT L& A, Other Assets Deferred Tax Assets Application of Funds 3, , , ,526.1 Source: Company RHP, ICICIdirect.com Research Key ratios (Year-end March) FY15 FY16 FY17 1HFY18 Per share data ( ) EPS Cash EPS BV Cash Per Share Operating Ratios (%) Gross Margins EBITDA margins Net Profit margins Cash Conversion cycle NA Gross Assets Turnover NA Return Ratios (%) RoE NA NA RoCE NA RoIC NA Valuation Ratios (x) P/E NA NA EV / EBITDA NA EV / Revenues NA Market Cap / Revenues NA Price to Book Value NA Solvency Ratios Net Debt / Equity Net Debt / EBITDA NA Current Ratio Quick Ratio Source: Company, ICICIdirect.com Research Page 13

14 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 Page 14

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