UltraTech Cement HOLD

Transcription

1 INDIA HOLD Result Update 26 April 2017 Cement Cost efficiencies moderate rising input cost impact UltraTech s (UTCEM) Q4FY17 standalone EBITDA dipped 7% YoY led by muted volume and price growth amid higher input costs, though the impact was moderated by steady operational efficiencies. Both demand and pricing has firmed up March 2017 onwards which should boost profitability in subsequent quarters. While we remain positive on cement demand recovery and on UTCEM s steady cost focus and prudent capacity expansion, we believe the same is currently factored in UTCEM s rich valuations. Hence we downgrade to HOLD with a revised TP of Rs3,830. Q4FY17 Muted volume & price growth: UTCEM s standalone revenue rose 3% YoY led by a 1% YoY (+20% QoQ) increase in the total volume and 2% higher NSR YoY. Cement demand remained impacted by the demonetisation impact during first half of the quarter, but recovered during the latter half of the quarter and demand has remained buoyant in April. Management highlighted good demand in southern (ex-tamil Nadu) and western regions, while demand suffered in the north market. Avg NSR dipped 2% QoQ (vs our est of flat NSR QoQ) due to weak pricing during Jan/Feb 2017, thus moderating YoY increase to 2%. White cement + Putty/ RMC sales accounted for 8%/7% of total revenue during the quarter as well as during FY17. Input cost inflation impact moderated by improving cost metrics: Operating costs per MT rose 5% YoY driven by rising fuel and diesel prices. UTCEM could moderate the impact through reduction in its power consumption rate, increased CPP efficiency, higher WHRS share, and by full utilisation of its split grinding units. Higher maintenance expense and packaging costs also led to rise in other expenses per MT. On QoQ basis, opex declined 1% (vs our estimates of no change) mainly driven by operating leverage gains on strong 20% QoQ volume growth and as the company reported lower employee cost QoQ (led by IndAS adjustment, change in actuarial assumptions, etc). Higher opex increase led to 8% YoY reduction in unitary EBITDA to Rs908/MT (5% lower vs our est Rs960). Subsequently, EBITDA/adj PAT cooled off 7%/10% YoY during the quarter. Estimates downgrade on delays in JPA s asset acquisition: The amalgamation of the JPA s 21.2 mn MT assets is delayed to Q2FY18 (as against earlier expectation of Mar/Apr 2017) owing to delays in receiving mines transfer approvals from various state governments. Further, UTCEM expects to ramp-up JPA s production to 60%/70% utilisation over the next 12/24 months. Factoring in the acquisition delays, we cut total our volume estimates for FY18/19 by 12%/2%. We model in 7% core volume growth during FY18/19 and 50%/60% JPA s asset utilisation during H2FY17/FY18 (vs 60%/70% earlier). Thus, we trim our FY18/19E EBITDA estimates by 11%/3% respectively. However, our FY18 PAT downgrade is lower at 5% owing to lower capital charges on delays in the acquisition process. UTCEM s greenfield expansion in Dhar, MP (3.5mn MT cement, 9MW of WHRS and 25MW CPP, Rs26bn capex) is expected to be completed by end FY19. Rich valuations: We continue to value UTCEM at 13x its FY19E EBITDA, leading to revised TP of Rs3,830 (earlier Rs3,890). Thus, we downgrade to HOLD from Buy. We continue to like UTCEM on account of its prudent capacity increase driven volume growth, and consistent cost improvement and hence, we recommend accumulating on dips. The stock has traded at mean multiples of 16x/ 11x EV/EBITDA (1-yr fwd) over the last 5yrs/10yrs, indicating significant valuation re-rating. While we factor in strong 5% NSR CAGR for next 2 years (vs 2%/5.5% in last 5-yr/10-yr) alongwith strong volume growth (on pretext of strong demand recovery), its RoCE would remain around 10% (similar to FY13-17 average). Hence, we restrict from expanding our valuation multiple from 13x currently until we see indications of stronger than estimated volume and price growth outlook. Y/E Mar (Rs mn) Q4FY17 Q4FY16 YoY (%) Q3FY17 QoQ (%) Q4FY17E Variance % Net Sales 65,953 64, , ,896 (1.4) Op. cost 53,171 50, , ,465 (0.5) EBITDA 12,782 13,771 (7.2) 11, ,431 (4.8) EBITDA margin (%) (213)bps 19.9 (47)bps 20.1 (70)bps Depreciation 3,357 3,515 (4.5) 3, , Interest 1,529 1, , , Other Income 2,401 1, , PBT 10,297 10,532 (2.2) 7, , Taxes Paid 3,276 2, , , Adjusted PAT 7,020 7,809 (10.1) 5, ,386 (5.0) Source: Company, Centrum Research Estimate, Standalone Financials Target Price Rs3,830 Key Data CMP* Rs4,230 Bloomberg Code UTCEM IN Downside 9% Curr Shares O/S (mn) Previous Target Rs3,890 Diluted Shares O/S(mn) Previous Rating Buy Mkt Cap (Rsbn/USDbn) /18.1 Price Performance (%)* 52 Wk H / L (Rs) 4275/3050 1M 6M 1Yr 5 Year H / L (Rs) 4275/ UTCEM IN Daily Vol. (3M NSE Avg.) NIFTY *as on 26 April 2017; Source: Bloomberg, Centrum Research Shareholding pattern (%)* Mar-17 Dec-16 Sep-16 Jun-16 Promoter FIIs Dom. Inst Public & Others Source: BSE, *as on 26 April 2017 Operational Trends Sales vol (mn MT) Rs/ MT trends Q4FY17 Q4FY16 YoY (%) Q3FY17 QoQ (%) NSR 4,687 4, ,782 (2.0) Raw materials Power & fuel (0.7) Freight 1,183 1, , Employee (21.2) Other Exp (4.8) Opex 3,779 3, ,833 (1.4) EBITDA (7.9) 949 (4.3) Source: Company, Centrum Research Earning Revisions summary Particulars (Rs bn) FY18E FY19E New Old Chg (%) New Old Chg (%) Sales (13.1) (4.1) EBITDA (11.1) (3.0) Ebitda margin (%) Adj PAT (4.7) (3.1) Source: Centrum Research Estimates Centrum vs. Bloomberg Consensus* Particulars (Rs bn) FY18E FY19E Centrum BBG Var (%) Centrum BBG Var (%) Net Sales (0.6) EBITDA PAT (7.4) Bloomberg Consensus* BUY SELL HOLD Target Price (Rs) Centrum Target Price (Rs) Variance (%) ,220 3,830 (9.2) Source: Bloomberg, Centrum Research Estimates; *as on 26 April 2017 Rajesh Kumar Ravi, rajesh.ravi@centrum.co.in; Vinay Menon, vinay.menon@centrum.co.in; Y/E Mar (Rs mn) Revenue YoY (%) EBITDA EBITDA (%) APAT YoY (%) DEPS Rs. RoE (%) RoCE (%) P/E (x) EV/EBITDA (x) FY15 2,29, , ,146 (1.7) FY16 2,41, , , FY17P 2,38,912 (0.9) 49, , FY18E 2,91, , , FY19E 3,62, , , , Standalone Financials In the interest of timeliness, this document is not edited. Centrum Equity Research is available on Bloomberg, Thomson Reuters and FactSet

2 Key operational highlights and other details from the concall UTCEM s standalone total sales volume rose 1% YoY (+20% QoQ) to 14.1mn MT. White cement/putty volume growth was flat YoY (+17% QoQ). Management highlighted that industry demand was flattish YoY in Q4FY17. As per the management, south market continued to drive industry s volume growth with most of the demand coming from AP/Telangana and Karnataka markets. This is followed by good demand in the eastern region. Even west markets witnessed demand recovery. The northern region (including the central region) witnessed weak demand during the quarter, as liquidity situation has not totally improved. The management highlighted pick-up in irrigation projects in south, and while road projects growth remained strong throughout India. It also sees some pick in demand from ports overhauling. It expects strong demand from ongoing Metro rail projects and coastal road projects in Mumbai. In south, it expects water shortage to impact retail/ rural demand in Tamil Nadu and Kerala markets. The management also expects affordable housing projects to boost cement demand H2FY18 onwards. Average petcoke cost for Q4 rose to USD85/MT vs USD78/MT in Q3FY17 and USD42/MT in Q4FY16. Prices have further increased in Q1FY18 to ~USD94/MT. The management has been able to mitigate the cost increase through 4% reduction in its power consumption rate YoY, 2% increase in CPP efficiency and 2% increase in WHRS power consumption. UTCEM increased sea transportation as well as increased utilisation of its split grinding units which help moderate the diesel price increase impact. Exhibit 1: Power &Fuel mix trends Power Mix Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 TPP + WHRS (% of total) N/A N/A Kiln Fuel Mix (%) Pet coke Imp coal N/A 11 Indigenous coal and others N/A 28 Energy costs (Rs/MT) QoQ (%) (4.1) 0.9 (9.4) (16.9) (0.4) YoY (%) (6.9) (10.6) (17.1) (27.1) (24.3) (18.9) (4.7) 22.6 Source: Company, Centrum Research Exhibit 2: Transport mix and logistics cost trend Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Mode Mix - Travel (%) Rail Road Sea Logistics cost (Rs/MT) 1,130 1,089 1,089 1,088 1,081 1,041 1,060 1,104 QoQ (%) (3.6) 0.0 (0.1) (0.6) (3.7) 3.9 YoY (%) (1.1) (0.4) (0.6) (4.3) (4.4) 1.2 Source: Company, Centrum Research Capex updates UTCEM s acquisition of JPA s 21.2mn MT plant is now expected to be completed during Q2FY18 (as against earlier expectations of end of FY17/ early Q1FY18). Out of this 21.2 mn MT, Bara unit of 4 mn MT will be commissioned in two phases: 2.5mn MT in FY18 and the rest in FY19. We have factored in 50%/60% capacity utilisation for JPA s assets during H2FY18/FY19. UTCEM s recently announced new expansion of 3.5mn MT at Dhar, MP is going as per plans (to be completed by Q4FY19). This will also have 9MW of WHRS and 25MW of CPP. The focus will be on market in the north-west parts of Maharashtra. Total capex envisaged is Rs26bn. Post these, UTCEM s India capacity will increase to 91mn MT. 2

3 Valuation and operational assumptions UTCEM s valuation has seen significant rerating over the last five years, as its mean EV/EBITDA multiple for FY13-17 expanded to 16x vs 11x over FY08-17 period. We believe this rerating has been on account of UTCEM s prudent capacity growth, market share gain and operational efficiencies improvements over the last 10 years. UTCEM prudently expanded its capacity over the last 10 years (both organic and inorganic) without stressing its balance sheet. Thus its market share has steadily grown from 9% in FY07 to 18% in FY17. The recent JPA s asset acquisition will further increase its market share in India to 22% in FY19E. UTCEM s steady invest in enhancing its operating costs metrics through CPPs/WHRS additions, split grinding units, process improvement, debottlenecking, etc has helped the company to offset impact of input cost inflation, lower utilisation (amid muted demand growth). Hence, its average EBITDA/MT during FY13-17 increased moderately to Rs970 vs Rs940 in the preceding five years. However, higher capital cost for incremental capacity expansion amid moderate unitary EBITDA expansion drove average RoCE during FY13-17 to almost halve to 10% vs 18% in the preceding five years. We already model in 17% volume CAGR for UTCEM (7% core volume CAGR) and 5% NSR CAGR for next two years (vs 2% NSR CAGR for the past five years), on the premise of strong demand and price outlook. Thus, we estimate RoCE to remain stable at ~10% in FY18-19 (similar to FY13-17 average). Hence, we maintain our valuation multiple at 13x EV/EBITDA and would upgrade it if the volume/price growth outlook further firms up (vs our current estimates). Post the recent run-up in the stock, we downgrade to HOLD (from Buy) with a revised TP of Rs3,830 (earlier Rs3,890). Exhibit 3: 1-yr forward EV/EBITDA chart Exhibit 4: 1-yr forward EV/MT chart Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 EV/EBITDA Mean EV/MT Mean Mean + 1 Std Dev Mean - 1 Std Dev Mean + 1 Std Dev Mean - 1 Std Dev Source: Bloomberg, Company, Centrum Research Estimates Source: Bloomberg, Company, Centrum Research Estimates Exhibit 5: Comparative Valuations Company Mkt Cap (Rs bn) CAGR FY17-19E (%) EBITDA margin (%) RoCE (%) RoE (%) EV/EBITDA (x) EV/MT(USD) Rev. EBITDA PAT FY17E FY18E FY19E FY17E FY18E FY19E FY17E FY18E FY19E FY17E FY18E FY19E FY17E FY18E FY19E 1, ACC Ambuja Cements Shree Cement , For ACC/ Ambuja FY17/18/19 = CY16/17/18 3

4 Exhibit 6: Key Operational Assumptions Particulars FY14 FY15 FY16 FY17E FY18E FY19E Total Cement capacity (mn MT) Total Sales Volume (mn MT) YoY change (%) Capacity utilisation (%) (Rs/ MT trend) Blended NSR 4,759 4,976 4,892 4,757 5,036 5,251 YoY change (%) (1.7) 4.6 (1.7) (2.8) Raw Materials Power & Fuel 970 1, Freight costs 1,075 1,171 1,204 1,164 1,194 1,224 Employee cost Other expense Total Opex 3,863 4,066 3,955 3,770 3,915 3,994 EBITDA per MT ,121 1,257 4

5 Exhibit 7: Quarterly financials trend (Standalone) Y/E Mar (Rs mn) Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Net Sales 60,069 55,878 57,305 64,023 62,325 54,589 56,091 65,953 Total Expenditure 48,537 46,059 46,154 50,252 48,100 43,041 44,956 53,171 Raw Materials 10,447 9,033 9,174 11,260 10,924 8,622 9,236 11,508 Power and Fuel 10,973 10,589 10,682 10,165 9,237 8,797 9,689 11,543 Employee 3,137 3,416 3,499 3,379 3,466 3,572 3,647 3,449 Transport 15,527 13,473 13,980 16,369 15,452 12,749 13,606 16,645 Others 8,454 9,548 8,821 9,079 9,021 9,301 8,779 10,027 EBITDA 11,532 9,820 11,151 13,771 14,225 11,548 11,135 12,782 Depreciation 2,852 3,352 3,259 3,515 3,027 3,139 3,156 3,357 EBIT 8,681 6,467 7,892 10,256 11,198 8,409 7,978 9,425 Interest 1,399 1,319 1,273 1,126 1,525 1,367 1,293 1,529 Other Income 1,177 1, ,402 1,504 1, ,401 PBT 8,459 6,485 7,511 10,532 11,177 8,767 7,655 10,297 Taxes 2,419 1,911 2,231 2,723 3,428 2,757 2,021 3,276 Exceptional expense/ (income) (39) (33) 105 (6) (173) (25) 44 (179) Reported PAT 6,001 4,541 5,385 7,803 7,576 5,986 5,678 6,842 Adjusted PAT 6,040 4,574 5,280 7,809 7,749 6,011 5,634 7,020 Adj EPS (Rs) YoY Growth (%) Sales volume (1.3) 1.1 Cement NSR 1.7 (1.4) (2.8) (10.4) (2.5) (2.8) (0.8) 1.9 Revenue (2.3) (2.1) 3.0 EBITDA (0.1) (7.2) PBT (5.9) (2.2) Adj PAT (3.4) (10.1) Margins (%) EBITDA EBIT PBT Adj PAT Operational Trend Cement & clinker Sales Vol (mn MT) Trends (Rs/mt) NSR 4,842 5,024 4,820 4,586 4,720 4,883 4,782 4,687 Raw material cost Power and fuel cost Employee cost Transport cost 1,251 1,211 1,176 1,173 1,170 1,140 1,160 1,183 Other expenses Operating cost 3,912 4,141 3,882 3,600 3,643 3,850 3,833 3,779 EBITDA per MT ,077 1, Source: Company, Centrum Research 5

6 Financials (Standalone) Exhibit 8: Income Statement Y/E March (Rsmn) FY15 FY16 FY17 FY18E FY19E Revenues 2,29,272 2,41,073 2,38,912 2,91,548 3,62,451 Materials cost 36,701 39,934 39,514 46,847 57,337 % of revenues Employee Cost 12,183 13,415 14,134 17,369 21,051 % of revenues Others 1,38,437 1,41,563 1,35,665 1,62,431 1,97,275 % of revenues EBITDA 41,951 46,161 49,600 64,901 86,788 EBIDTA Margins (%) Depreciation & Amortisation 11,331 12,890 12,679 16,146 20,645 EBIT 30,620 33,270 36,921 48,755 66,143 Interest expenses 5,477 5,053 5,714 14,000 13,000 PBT from operations 25,144 28,218 31,207 34,755 53,143 Other Income 3,718 2,352 6,600 6,606 6,745 Exceptional loss/(gain) 0 0 (333) 0 0 PBT 28,861 30,569 37,474 41,361 59,888 Taxes 8,715 8,823 11,482 12,698 18,565 Effective tax rate (%) Net Profit 20,146 21,746 25,992 28,663 41,323 Reported Net Profit 20,146 21,746 25,992 28,663 41,323 Adj Net Profit 20,146 21,746 26,325 28,663 41,323 Exhibit 9: Key Ratios Y/E March FY15 FY16 FY17P FY18E FY19E Growth ratios (%) Revenues (0.9) EBIDTA Adj Net Profit (1.7) Margin ratios (%) EBITDA Margin PBT from operations Margin Adj PAT Margin Return Ratios (%) RoE RoCE RoIC Turnover Ratios (days) Gross block turnover (x) Debtors Inventory Creditors Cash conversion cycle Solvency Ratio Net debt-equity (0.1) Debt-equity Interest coverage ratio Gross debt/ebitda Current Ratio Per Share (Rs) Adjusted EPS BVPS ,070.2 CEPS DPS Dividend payout % Valuations (x)(avg Mkt Cap) P/E (adjusted) P/BV EV/EBITDA EV/ton (USD $) Dividend yield % Yr Avg AOCF/EV yield % Exhibit 10: Balance Sheet Y/E March (Rsmn) FY15 FY16 FY17P FY18E FY19E Equity Share Capital 2,744 2,744 2,744 2,744 2,744 Reserves & surplus 1,85,833 2,04,617 2,27,398 2,52,850 2,90,962 Total Shareholders' Fund 1,88,577 2,07,361 2,30,142 2,55,594 2,93,706 Total Debt 74,142 76,607 62,404 1,89,258 1,49,119 Def tax liab. (net) 27,920 32,274 35,689 35,889 36,089 Total Liabilities 2,90,638 3,16,241 3,28,235 4,80,741 4,78,914 Gross Block 3,18,742 3,45,669 3,65,057 5,25,057 5,60,057 Less:- Accumulated Depreciation 1,09,266 1,20,341 1,33,020 1,49,166 1,69,811 Net Block 2,09,475 2,25,328 2,32,037 3,75,892 3,90,247 Capital WIP 20,737 14,156 8,784 20,000 10,000 Net Fixed assets 2,30,212 2,39,483 2,40,821 3,95,892 4,00,247 Investments 52,013 51,081 66,081 46,081 36,081 Inventories 27,515 24,260 22,776 28,755 36,742 Sundry Debtors 12,032 14,149 12,762 15,975 19,364 Cash & bank balances 2,006 22,352 24,118 39,448 36,781 Loans & Advances 28,078 26,699 28,146 33,548 39,721 Other Assets Total current assets 69,924 87,895 88,129 1,18,046 1,32,905 Trade payables 15,535 16,136 17,138 20,936 26,054 Other current liabilities 32,888 34,750 38,080 45,517 50,007 Provisions 13,088 11,332 11,578 12,824 14,257 Net current assets 8,413 25,677 21,333 38,769 42,587 Total 2,90,638 3,16,241 3,28,235 4,80,741 4,78,914 Exhibit 11: Cash Flow Y/E March (Rsmn) FY15 FY16 FY17P FY18E FY19E Op profit before WC changes 40,740 38,110 41,200 53,108 69,234 Working capital changes 91 5,196 6,036 (2,812) (7,298) Cash from Operations 40,830 43,306 47,236 50,296 61,936 Adj. OCF (OCF-Interest) 35,335 37,918 41,522 36,296 48,936 Net capex (25,929) (20,359) (14,017) (51,216) (25,000) Adj. FCF (AOCF-Capex) 9,407 17,560 27,505 (14,920) 23,936 Cash from investing (18,797) (17,323) (22,417) (24,610) (8,255) Cash from financing (22,668) (5,823) (23,053) (10,355) (56,348) Net change in cash (635) 20,161 1,766 15,330 (2,667) 6

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8 The opinions and projections expressed herein are entirely those of the author and are given as part of the normal research activity of Centrum Broking and are given as of this date and are subject to change without notice. Any opinion estimate or projection herein constitutes a view as of the date of this report and there can be no assurance that future results or events will be consistent with any such opinions, estimate or projection. This document has not been prepared by or in conjunction with or on behalf of or at the instigation of, or by arrangement with the company or any of its directors or any other person. Information in this document must not be relied upon as having been authorized or approved by the company or its directors or any other person. Any opinions and projections contained herein are entirely those of the authors. None of the company or its directors or any other person accepts any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection therewith. Centrum and its affiliates have not managed or co-managed a public offering for the subject company in the preceding twelve months. Centrum and affiliates have not received compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for service in respect of public offerings, corporate finance, debt restructuring, investment banking or other advisory services in a merger/acquisition or some other sort of specific transaction. As per the declarations given by them, Mr. Rajesh Kumar Ravi, & Mr. Vinay Menon, research analyst and and/or any of their family members do not serve as an officer, director or any way connected to the company/companies mentioned in this report. Further, as declared by them, they are not received any compensation from the above companies in the preceding twelve months. They do not hold any shares by them or through their relatives or in case if holds the shares then will not to do any transactions in the said scrip for 30 days from the date of release such report. Our entire research professionals are our employees and are paid a salary. They do not have any other material conflict of interest of the research analyst or member of which the research analyst knows of has reason to know at the time of publication of the research report or at the time of the public appearance. While we would endeavour to update the information herein on a reasonable basis, Centrum, its associated companies, their directors and employees are under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent Centrum from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or Centrum policies, in circumstances where Centrum is acting in an advisory capacity to this company, or any certain other circumstances. This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Centrum Broking Limited or its group companies to any registration or licensing requirement within such jurisdiction. Specifically, this document does not constitute an offer to or solicitation to any U.S. person for the purchase or sale of any financial instrument or as an official confirmation of any transaction to any U.S. person unless otherwise stated, this message should not be construed as official confirmation of any transaction. No part of this document may be distributed in Canada or used by private customers in United Kingdom. The information contained herein is not intended for publication or distribution or circulation in any manner whatsoever and any unauthorized reading, dissemination, distribution or copying of this communication is prohibited unless otherwise expressly authorized. Please ensure that you have read Risk Disclosure Document for Capital Market and Derivatives Segments as prescribed by Securities and Exchange Board of India before investing in Indian Securities Market. Ultratech Cement price chart Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Ultratech Cement Source: Bloomberg, Centrum Research 8

9 1 2 Business activities of Centrum Broking Limited (CBL) Details of Disciplinary History of CBL Disclosure of Interest Statement Centrum Broking Limited (hereinafter referred to as CBL ) is a registered member of NSE (Cash, F&O and Currency Derivatives Segments), MCX-SX (Currency Derivatives Segment) and BSE (Cash segment), Depository Participant of CDSL and a SEBI registered Portfolio Manager. CBL has not been debarred/ suspended by SEBI or any other regulatory authority from accessing /dealing in securities market. 3 Registration status of CBL: CBL is registered with SEBI as a Research Analyst (SEBI Registration No. INH ) 4 5 Whether Research analyst s or relatives have any financial interest in the subject company and nature of such financial interest Whether Research analyst or relatives have actual / beneficial ownership of 1% or more in securities of the subject company at the end of the month immediately preceding the date of publication of the document. Ultratech ACC Ambuja Cements Shree Cement 6 Whether the research analyst or his relatives has any other material conflict of interest Whether research analyst has received any compensation from the subject company in the past 12 months and nature of products / services for which such compensation is received Whether the Research Analyst has received any compensation or any other benefits from the subject company or third party in connection with the research report Whether Research Analysts has served as an officer, director or employee of the subject company Whether the Research Analyst has been engaged in market making activity of the subject company. Rating Criteria Rating Market cap < Rs20bn Market cap > Rs20bn but < 100bn Market cap > Rs100bn Buy Upside > 20% Upside > 15% Upside > 10% Hold Upside between -20% to +20% Upside between -15% to +15% Upside between -10% to +10% Sell Downside > 20% Downside > 15% Downside > 10% Member (NSE and BSE) Regn No.: CAPITAL MARKET SEBI REGN. NO.: BSE: INB CAPITAL MARKET SEBI REGN. NO.: NSE: INB DERIVATIVES SEBI REGN. NO.: NSE: INF (TRADING & CLEARING MEMBER) CURRENCY DERIVATIVES: MCX-SX INE CURRENCY DERIVATIVES:NSE (TM & SCM) NSE Depository Participant (DP) CDSL DP ID: SEBI REGD NO. : CDSL : IN-DP-CDSL PORTFOLIO MANAGER SEBI REGN NO.: INP Website: Investor Grievance ID: investor.grievances@centrum.co.in Compliance Officer Details: Kavita Ravichandran (022) ; ID: compliance@centrum.co.in Centrum Broking Ltd. (CIN :U67120MH1994PLC078125) Registered Office Address Bombay Mutual Building, 2nd Floor, Dr. D. N. Road, Fort, Mumbai Corporate Office & Correspondence Address Centrum House 6th Floor, CST Road, Near Vidya Nagari Marg, Kalina, Santacruz (E), Mumbai Tel: (022)