Domestic recovery on track, focus shifts on developing new brands upgrade to LONG on fair valuations Personal Care

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1 Bajaj Corp Absolute : LONG Relative : Overweight 4QFY18 Result: Estimate ( ), TP ( ), Rating ( ) Regular Coverage 13% ATR in 14 Months Domestic recovery on track, focus shifts on developing new brands upgrade to LONG on fair valuations Personal Care 2018 Equirus All rights reserved Rating Information Price (Rs) 479 Target Price (Rs) 539 Target Date 30th Jun'19 Target Set On 26th Apr '18 Implied yrs of growth (DCF) 20 Fair Value (DCF) 475 Fair Value (DDM) 400 Ind Benchmark SPBSMIP Model Portfolio Position NA Stock Information Market Cap (Rs Mn) 70,586 Free Float (%) % 52 Wk H/L (Rs) 525/ Avg Daily Volume (1yr) 98,100 Avg Daily Value (Rs Mn) 42 Equity Cap (Rs Mn) 148 Face Value (Rs) 1 Bloomberg Code BJCOR IN Ownership Recent 3M 12M Promoters 66.9% 0.0% 0.0% DII 4.6% -0.4% -0.8% FII 25.1% 0.7% 2.2% Public 3.4% -0.4% -1.4% Price % 1M 3M 12M Absolute 4.2 % -3.5 % 20.2 % Vs Industry -1.5 % 2.4 % 6.5 % Emami 4.2 % -7.0 % 8.8 % Marico -3.1 % 3.9 % -1.3 % Standalone Quarterly EPS forecast Rs/Share 1Q 2Q 3Q 4Q EPS (18A) EPS (19E) Bajaj Corp s (BJCOR) 4QFY18 standalone revenues grew 8.3% yoy (10.1% on comparable tax basis) to Rs 2.2bn, in line with EE. Overall volumes were up 5.9% yoy but fell slightly short of EE. Post GST, the wholesale channel has shown sequential recovery whereas rural markets have picked up after muted three-quarter growth. We broadly maintain FY19/FY20 volume growth estimates at 8%/7% while building in a ~4% blended price hike taken in Apr 18 to counter rising LLP prices; FY19 EBIDTA estimates also remain largely unchanged. We feel BCJOR s recent steps to gradually reduce dependence on ADHO are in the right direction. With the recent stock price correction, we upgrade BJCOR to LONG (from ADD) with a Jun 19 TP of Rs 539 (Rs 546 earlier) set at a 31x TTM EPS of Rs Standalone revenues up 8.3%, rural markets recovering: 4Q standalone revenues were up 8.3% (~10.1% on comparable tax basis). Overall volumes grew by 5.9% yoy and domestic volumes by 6.9%. Despite an improving sales mix, gross margins were flat yoy on high RM cost inflation, especially in LLP prices. Standalone EBITDA margins stood at 32.4% while EBITDA grew 8.5% to Rs 718mn. With strong momentum in both rural and urban markets, ADHO volumes increased 7% yoy and achieved their highest-ever value/ volume market share of 61.3%/58.8% in the light hair oil category. Rural markets have shown signs of recovery after three quarters of weak growth and sluggish offtake. Focus on developing other new hair-oil brands to reduce dependence on ADHO: After continually investing to build a strong core, BJCOR has strengthened its management team, R&D and distribution structure. With core functions in place, it is focusing on developing new brands in the hair oil segment. New launches in the hair care (recent launch of jasmine coconut oil), revamp of amla hair oil brand and ramp-up in NOMARKS portfolio could reduce the currently-high ADHO dependence in the mid-to-long term. We believe these measures to diversify the product portfolio are in the right direction and would closely monitor the progress of new launches. The company also plans to launch one new product every quarter, indicating its focus to reduce dependence on ADHO. Valuations: Given a favorable volume growth base (FY18: 2%) and an uptick in demand, volume growth for BJCOR would likely inch up in FY19E. Due to the recent stock price correction, we upgrade our rating to LONG (from ADD) with a Jun 19 TP of Rs 539 set at 31x its TTM EPS of Rs Key risks: Lower-than-expected volume growth and continued increase in RM costs. Change in Estimates Rs. Mn FY19E Chg (%) FY20E Chg (%) Sales 9,462 0% 10,518-1% EBITDA 2,977 0% 3,303-3% EPS 17-1% 18-4% Consolidated Financials Rs. Mn YE Mar FY18A FY19E FY20E FY21E Sales 8,285 9,462 10,518 11,751 EBITDA 2,539 2,977 3,303 3,846 Depreciation Interest Expense Other Income Reported PAT 2,113 2,576 2,612 2,987 Recurring PAT 2,111 2,576 2,612 2,987 Total Equity 4,925 5,322 5,502 5,643 Gross Debt Cash 3,208 3,521 3,656 3,747 Rs Per Share FY18A FY19E FY20E FY21E Earnings Book Value Dividends FCFF P/E (x) P/B (x) EV/EBITDA (x) ROE (%) 43 % 50 % 48 % 54 % Core ROIC (%) 101 % 106 % 104 % 117 % EBITDA Margin (%) 31 % 31 % 31 % 33 % Net Margin (%) 25 % 27 % 25 % 25 % April 26, 2018 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 1 of 10 Before reading this report, you must refer to the disclaimer on the last page.

2 Earnings call takeaways 1. BJCOR registered a like to like growth of 10.1% during the quarter 2. Management indicated, post GST channel stabilization is under process and wholesale channel has witnessed recovery in sequential quarters 3. Rural LHO volume growth was at 5.3% vs. 0.7% in 3QFY Decrease in other income was mainly due to reporting of mark to market loss of treasury under IND-AS. 12. Brahmi Amla Ayurvedic hair has been doing well in the hindi speaking areas. 13. Despite increase in prices of key raw materials such as LLP, BJCOR has maintained its gross margins in 4QFY18 vs. 4QFY17 due to timely buying of LLP, value engineering and change in sales mix. 4. Bajaj NOMARKS did sales of Rs 240mn during FY18 5. BJCOR launched Bajaj coco Jasmine hair oil during 4QFY18 in Maharashtra. As per management Maharashtra, Andhra Pradesh and West Bengal are the biggest market for Jasmine hair oil. 6. BJCOR took a price hike of 6% in ADHO for SKUs of 100ml and above. These SKUs contribute ~33-35% of the total sales. 7. Modern trade contributes 7% of the total sales for BJCOR. Management indicated that MT is more profitable that GT despite higher discounts in MT. 8. BJCOR has taken corrective actions in International business which will yield results 2HFY19 onwards. 9. Management indicated that rural market is showing signs of recovery. 10. In near term the new products launches will be in the hair oil and skin care category. April 26, 2018 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 2 of 10

3 Quarterly performance, standalone Rs Mn 4QFY18 4QFY18E 3QFY18 4QFY17 % Change 4QFY18E 3QFY18 4QFY17 Comments Net Sales 2,216 2,257 2,081 2, % 6.5% 8.3% Sales in line with EE (Increase)/Decrease in stock in trade & WIP % % Raw Material Consumption % 7.1% 17.5% Purchase of Traded Goods % -75.6% -87.9% Employee Cost % 3.6% 31.1% Other Expenditure % 18.2% -32.6% Advertisement Expense % -11.1% 104.8% Total Expenditures 1,498 1,524 1,402 1, % 6.8% 8.3% EBITDA % 5.9% 8.5% In line with EE Depreciation % -3.5% 31.1% EBIT % 6.1% 8.0% Other Income % -80.9% -63.1% Interest expenses % 35.8% 42.3% PBT % 0.5% 5.4% Tax % 0.5% 6.0% Recurring PAT % 0.5% 5.2% Extraordinaries % Reported PAT % 1.0% 7.5% EPS (Rs) % 0.5% 5.2% PAT lower than EE due to lower than expected other income EBITDA Margin 32.4% 32.5% 32.6% 32.4% -9 bps -20 bps 4 bps In line with EE EBIT Margin 31.6% 31.9% 31.7% 31.7% -28 bps -11 bps -11 bps PBT Margin 31.8% 36.2% 33.7% 32.7% -436 bps -192 bps -90 bps PAT Margin 25.1% 28.5% 26.5% 25.3% -331 bps -137 bps -19 bps Tax Rate 21.4% 21.3% 21.4% 21.2% 6 bps 0 bps 12 bps April 26, 2018 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 3 of 10

4 Company Snapshot How we differ from Consensus EPS Sales PAT - Equirus Consensus % Diff Comment FY19E % We expect margins to remain under FY20E % pressure given the increase in prices of key raw materials FY19E 9,462 9,582-1 % FY20E 10,518 11,007-4 % FY19E 2,576 2,651-3 % FY20E 2,612 2, % Sensitivity to Key Variables % Change % Impact on EPS Raw Material Cost 1 % -3 % DCF Valuations & Assumptions Rf Beta Ke Term. Growth Debt/IC in Term. Yr 6.8 % % 3.0 % 5.4 % Key Estimates: Particulars FY16 FY17 FY18E FY19E FY20E FY21E ADHO Particulars Sales (Rs. Mn) FY11 7,297 7,346 FY12 7,575 FY13 8,491 FY14E 9,358 FY15E FY16E 10,363 NoMarks ADHO Revenue (Rs. Mn) (Rs Mn) 3, , , ,381 7, , EBITDA Nomark (Rs. Mn) Mn) 2,737-2,636-2,539-2, , , EBITDA (Rs Mn) 1,089 1,166 1,729 1,848 2,102 2,460 EBITDA Margin(%) 34.2% 33.1% 30.6% 31.5% 31.4% 32.7% EBITDA Margin (%) 30.3% 24.6% 28.5% 27.2% 26.2% 26.3% PAT PAT (Rs. Mn) Mn) 1,031 1,964 2,366 1,201 2,111 1,674 2,576 1,473 2,611 1,439 1,752 2,986 PAT Margin(%) 28.7% 24.6% 29.7% 25.4% 25.5% 27.6% 27.2% 21.7% 24.8% 18.0% 18.7% 25.4% Risk to Our View: Volatility of commodity prices could lead to fluctuations in raw material costs Increasing competitive intensity could lead to price wars, pressurizing margins going forward Economic slowdown & high inflation Key Triggers Stable raw material prices Increasing demand for premium products - FY19E FY20E FY21-28E FY29-33E FY34-38E Sales Growth 14 % 11 % 9 % 6 % 6 % NOPAT Margin 24 % 21 % 22 % 22 % 22 % IC Turnover RoIC % % % % % Years of strong growth Valuation as on date (Rs) Valuation as of Jun' Based on DCF, assuming 20 years of 9.4% CAGR growth and 115% average ROIC, we derive our current fair value of Rs 424 and a 30 Jun 19 fair value of Rs 475. Company Description: Headquartered in Udaipur, Bajaj Corp Ltd is one of India's leading FMCG companies with major brands in hair care category. Bajaj Corp has very strong brand heritage with brands that have been in the market for past 60 years. The company's principal product is Almond Drops, which is in the light hair oil segment. Recently Bajaj Corp, with the acquisition of NoMarks Brand, marked its entry into the Rs 85bn skin-care category. Comparable valuation EPS P/E BPS P/B RoE Div Yield Mkt Cap Price Target Company Reco. CMP Rs. Mn. Target Date FY18A FY19E FY20E FY18A FY19E FY20E FY18A FY19E FY18A FY19E FY20E FY18A FY19E Bajaj Corp LONG , th Jun' % 50 % 48 % 2.5 % 2.6 % Emami NR 1, ,886 NR NR % 39 % 45 % 0.6 % 0.4 % Marico ADD , st Mar' % 35 % 36 % 1.1 % 1.3 % April 26, 2018 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 4 of 10

5 Standalone Quarterly Earnings Forecast and Key Drivers Rs in Mn 1Q18A 2Q18A 3Q18A 4Q18A 1Q19E 2Q19E 3Q19E 4Q19E 1Q20E 2Q20E 3Q20E 4Q20E FY18A FY19E FY20E FY21E Revenue 1,974 2,041 2,081 2,216 2,267 2,384 2,311 2,500 2,520 2,657 2,568 2,773 8,312 9,462 10,518 11,751 (Increase)/Decrease in stock in trade & WIP, Purchase of traded goods Raw Material Consumption ,389 2,678 2,945 3,267 Employee Cost ,116 Other Expenditure ,058 1,148 1,266 1,382 Advertisement Expense ,182 1,285 1,438 1,494 EBITDA ,586 2,977 3,303 3,846 Depreciation EBIT ,518 2,913 3,231 3,774 Interest Other Income PBT ,750 3,371 3,731 4,267 Tax ,119 1,280 Recurring PAT ,163 2,576 2,612 2,987 Extraordinary Reported PAT ,166 2,576 2,612 2,987 EPS (Rs) Key Drivers ADHO Sales 1,835 1,891 1,839 2,009 2,042 2,125 2,067 2,257 2,250 2,342 2,278 2,488 7,575 8,491 9,358 10,363 ADHO Volume Growth -7% 6% 5% 7% 7% 7% 7% 7% 7% 7% 7% 7% 3% 7% 7% 7% Sequential Growth (%) Revenue -3 % 3 % 2 % 7 % 2 % 5 % -3 % 8 % 1 % 5 % -3 % 8 % (Increase)/Decrease in stock in trade & WIP, Purchase of traded -38 % 128 % -78 % 109 % 74 % 3 % -3 % 8 % 1 % 5 % -3 % 8 % goods EBITDA -8 % -4 % 16 % 6 % -2 % 7 % -3 % 10 % -3 % 8 % -4 % 13 % EBIT -9 % -4 % 16 % 6 % -2 % 7 % -3 % 10 % -3 % 8 % -4 % 13 % Recurring PAT 4 % -8 % 9 % 0 % 13 % 7 % -1 % -7 % -1 % 8 % -2 % 7 % EPS 4 % -8 % 9 % 0 % 13 % 7 % -1 % -7 % -1 % 8 % -2 % 7 % Yearly Growth (%) Revenue -3 % 4 % 11 % 8 % 15 % 17 % 11 % 13 % 11 % 11 % 11 % 11 % 5 % 14 % 11 % 12 % EBITDA -15 % -13 % 11 % 8 % 16 % 28 % 7 % 11 % 10 % 11 % 10 % 13 % -3 % 15 % 11 % 16 % EBIT 2 % -14 % 10 % 8 % 16 % 29 % 8 % 12 % 10 % 11 % 10 % 13 % -3 % 16 % 11 % 17 % Recurring PAT 5 % -22 % -5 % 5 % 14 % 32 % 20 % 12 % -2 % -1 % -3 % 12 % -10 % 19 % 1 % 14 % EPS 5 % -22 % -5 % 5 % 14 % 32 % 20 % 12 % -2 % -1 % -3 % 12 % -10 % 19 % 1 % 14 % Margin (%) EBITDA 31 % 29 % 33 % 32 % 31 % 31 % 32 % 32 % 31 % 31 % 31 % 32 % 31 % 31 % 31 % 33 % EBIT 30 % 28 % 32 % 32 % 30 % 31 % 31 % 31 % 30 % 31 % 30 % 32 % 30 % 31 % 31 % 32 % PBT 35 % 32 % 34 % 32 % 35 % 36 % 37 % 35 % 35 % 36 % 36 % 36 % 33 % 36 % 35 % 36 % PAT 28 % 25 % 27 % 25 % 28 % 28 % 29 % 25 % 24 % 25 % 25 % 25 % 26 % 27 % 25 % 25 % April 26, 2018 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 5 of 10

6 Jun/12 Dec/12 Jun/13 Dec/13 Jun/14 Dec/14 Jun/15 Dec/15 Jun/16 Dec/16 Jun/17 Dec/17 Jun/18 Dec/18 Jun/19 Jun/12 Dec/12 Jun/13 Dec/13 Jun/14 Dec/14 Jun/15 Dec/15 Jun/16 Dec/16 Jun/17 Dec/17 Jun/18 Dec/18 Jun/19 Jun/12 Dec/12 Jun/13 Dec/13 Jun/14 Dec/14 Jun/15 Dec/15 Jun/16 Dec/16 Jun/17 Dec/17 Jun/18 Dec/18 Jun/19 Consolidated Financials Bajaj Corp. Absolute LONG Relative Overweight 13% ATR in 14 Months P&L (Rs Mn) FY18A FY19E FY20E FY21E Balance Sheet (Rs Mn) FY18A FY19E FY20E FY21E Cash Flow (Rs Mn) FY18A FY19E FY20E FY21E Revenue 8,285 9,462 10,518 11,751 Equity Capital PBT 2,698 3,371 3,731 4,267 Op. Expenditure 5,746 6,485 7,216 7,905 Reserve 4,777 5,174 5,355 5,496 Depreciation EBITDA 2,539 2,977 3,303 3,846 Networth 4,925 5,322 5,502 5,643 Others Depreciation Long Term Debt Taxes Paid ,119 1,280 EBIT 2,465 2,913 3,231 3,774 Def Tax Liability Change in WC Interest Expense Minority Interest Operating C/F 2,037 2,593 2,667 3,040 Other Income Account Payables Capex PBT 2,698 3,371 3,731 4,267 Other Curr Liabi Change in Invest Tax ,119 1,280 Total Liabilities & Equity 6,075 6,484 6,650 6,882 Others PAT bef. MI & Assoc. 2,111 2,576 2,612 2,987 Net Fixed Assets 1,155 1,191 1,219 1,247 Investing C/F Minority Interest Capital WIP Change in Debt Profit from Assoc Others Change in Equity Recurring PAT 2,111 2,576 2,612 2,987 Inventory Others -2,075-2,173-2,431-2,846 Extraordinaires Account Receivables Financing C/F -2,146-2,179-2,433-2,849 Reported PAT 2,113 2,576 2,612 2,987 Other Current Assets Net change in cash FDEPS (Rs) Cash 3,208 3,521 3,656 3,747 RoE (%) 43 % 50 % 48 % 54 % DPS (Rs) Total Assets 6,075 6,484 6,650 6,882 RoIC (%) 42 % 49 % 47 % 52 % CEPS (Rs) Non-cash Working Capital Core RoIC (%) 101 % 106 % 104 % 117 % FCFPS (Rs) Cash Conv Cycle Div Payout (%) 98 % 85 % 93 % 95 % BVPS (Rs) WC Turnover P/E EBITDAM (%) 31 % 31 % 31 % 33 % FA Turnover P/B PATM (%) 25 % 27 % 25 % 25 % Net D/E P/FCFF Tax Rate (%) 22 % 24 % 30 % 30 % Revenue/Capital Employed EV/EBITDA Sales Growth (%) 4 % 14 % 11 % 12 % Capital Employed/Equity EV/Sales FDEPS Growth (%) -11 % 22 % 1 % 14 % Dividend Yield (%) 2.5 % 2.6 % 2.9 % 3.3 % TTM P/E vs. 2 yr forward EPS growth TTM EV/EBITDA vs. 2 yr forward EBITDA growth TTM P/B vs. 2 yr forward RoE EPS Growth 50% 40% 30% 20% 10% 0% 35x 30x 25x 20x 15x EBITDA Growth 50% 25x 40% 20x 30% 15x 20% 10x 10% 5x 0% -10% RoE 70% 15x 60% 50% 12x 40% 9x 30% 6x 20% 3x 10% 0% April 26, 2018 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 6 of 10

7 Historical Consolidated Financials Bajaj Corp. Absolute LONG Relative Overweight 13% ATR in 14 Months P&L (Rs Mn) FY15A FY16A FY17A FY18A Balance Sheet (Rs Mn) FY15A FY16A FY17A FY18A Cash Flow (Rs Mn) FY15A FY16A FY17A FY18A Revenue 8,256 7,997 7,969 8,285 Equity Capital PBT 2,188 2,503 2,966 2,698 Op. Expenditure 5,864 5,260 5,333 5,746 Reserve 4,738 4,663 4,794 4,777 Depreciation EBITDA 2,392 2,737 2,636 2,539 Networth 4,886 4,811 4,942 4,925 Others Depreciation Long Term Debt Taxes Paid EBIT 1,874 2,218 2,583 2,465 Def Tax Liability Change in WC Interest Expense Minority Interest Operating C/F 2,067 1,929 2,120 2,037 Other Income Account Payables Capex PBT 2,188 2,503 2,966 2,698 Other Curr Liabi Change in Invest Tax Total Liabilities & Equity 5,679 5,662 5,897 6,075 Others PAT bef. MI & Assoc. 1,727 1,964 2,366 2,111 Net Fixed Assets 1, ,186 1,155 Investing C/F Minority Interest Capital WIP Change in Debt Profit from Assoc Others Change in Equity Recurring PAT 1,727 1,964 2,366 2,111 Inventory Others -2,035-1,943-2,000-2,075 Extraordinaires Account Receivables Financing C/F -2,035-1,943-2,000-2,146 Reported PAT 1,727 1,964 2,173 2,113 Other Current Assets Net change in cash EPS (Rs) Cash 3,178 3,353 3,510 3,208 RoE (%) 34 % 41 % 49 % 43 % DPS (Rs) Total Assets 5,679 5,662 5,897 6,075 RoIC (%) 34 % 40 % 47 % 42 % CEPS (Rs) Non-cash Working Capital Core RoIC (%) 67 % 97 % 120 % 101 % FCFPS (Rs) Cash Conv Cycle Div Payout (%) 126 % 99 % 103 % 98 % BVPS (Rs) WC Turnover P/E EBITDAM (%) 29 % 34 % 33 % 31 % FA Turnover P/B PATM (%) 21 % 25 % 30 % 25 % Net D/E P/FCFF Tax Rate (%) 21 % 22 % 20 % 22 % Revenue/Capital Employed EV/EBITDA Sales growth (%) 23 % -3 % 0 % 4 % Capital Employed/Equity EV/Sales FDEPS growth (%) 16 % 14 % 20 % -11 % Dividend Yield (%) 2.6 % 2.3 % 2.4 % 2.5 % April 26, 2018 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 7 of 10

8 Equirus Securities Research Analysts Sector/Industry Equity Sales Abhishek Shindadkar IT Services VishadTurakhia Ashutosh Tiwari Auto, Metals & Mining SubhamSinha Depesh Kashyap Mid-Caps Viral Desai DhavalDama FMCG, Mid-Caps Viraj Mehta Manoj Gori Consumer Durables Dealing Room Maulik Patel Oil and Gas Ashish Shah Pranav Mehta Building Materials IleshSavla Praful Bohra Pharmaceuticals Manoj Kejriwal Rohan Mandora Banking & Financial Services Dharmesh Mehta Associates Compliance Officer Ankit Choudhary Jay Soni Bharat Celly Corporate Communications Harshit Patel MahdokhtBharda Hetal Bhatia Meet Chande NishantBagrecha RonakSoni Samkit Shah Shreepal Doshi Varun Baxi Vikas Jain Rating & Coverage Definitions: Absolute Rating LONG : Over the investment horizon, ATR >= Ke for companies with Free Float market cap >Rs 5 billion and ATR >= 20% for rest of the companies ADD: ATR >= 5% but less than Ke over investment horizon REDUCE: ATR >= negative 10% but <5% over investment horizon SHORT: ATR < negative 10% over investment horizon Relative Rating OVERWEIGHT: Likely to outperform the benchmark by at least 5% over investment horizon BENCHMARK: likely to perform in line with the benchmark UNDERWEIGHT: likely to under-perform the benchmark by at least 5% over investment horizon Investment Horizon Investment Horizon is set at a minimum 3 months to maximum 18 months with target date falling on last day of a calendar quarter. Lite vs. Regular Coverage vs. Spot Coverage We aim to keep our rating and estimates updated at least once a quarter for Regular Coverage stocks. Generally, we would have access to the company and we would maintain detailed financial model for Regular coverage companies. We intend to publish updates on Lite coverage stocks only an opportunistic basis and subject to our ability to contact the management. Our rating and estimates for Lite coverage stocks may not be current. Spot coverage is meant for one-off coverage of a specific company and in such cases, earnings forecast and target price are optional. Spot coverage is meant to stimulate discussion rather than provide a research opinion. Registered Office: Equirus Securities Private Limited Unit No. 1201, 12th Floor, C Wing, Marathon Futurex, N M Joshi Marg, Lower Parel, Mumbai Tel. No: +91 (0) Fax No: +91- (0) Corporate Office: 3rd floor, House No. 9, Magnet Corporate Park, Near Zydus Hospital, B/H Intas Sola Bridge, S.G. Highway Ahmedabad Gujarat Tel. No: +91 (0) Fax No: +91 (0) April 26, 2018 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 8 of 10

9 2018Equirus Securities Private Limited. All rights reserved. For Private Circulation only. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Equirus Securities Private Limited Analyst Certification I Dhaval Dama, author to this report, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Disclosures Equirus Securities Private Limited (ESPL) having Corporate Identification Number U65993MH2007PTC is registered in India with Securities and Exchange Board of India (SEBI) as a trading member on the Capital Market (Reg. No. INB ), Futures & Options Segment (Reg. No.INF ) of the National Stock Exchange of India Ltd. (NSE) and on Cash Segment (Reg. No.INB ) of Bombay Stock Exchange Limited (BSE).ESPL is also registered with SEBI as Research Analyst under SEBI (Research Analyst) Regulations, 2014 (Reg. No. INH ), as a Portfolio Manager under SEBI (Portfolio Managers Regulations, 1993 (Reg. No.INP ) and as a Depository Participant of the Central Depository Services (India) Limited (Reg. No.IN-DP ). There are no disciplinary actions taken by any regulatory authority against ESPL. ESPL is a subsidiary of Equirus Capital Pvt. Ltd. (ECPL) which is registered with SEBI as Category I Merchant Banker and provides investment banking services including but not limited to merchant banking services, private equity, mergers & acquisitions and structured finance. As ESPL and its associates are engaged in various financial services business, it might have: - (a) received compensation (except in connection with the preparation of this report) from the subject company for investment banking or merchant banking or brokerage services in the past twelve months;(b) managed or co-managed public offering of securities for the subject company in the past twelve months; or (c) have received a mandate from the subject company; or (d) might have other financial, business or other interests in entities including the subject company (ies) mentioned in this Report. ESPL & its associates, their directors and employees may from time to time have positions or options in the company and buy or sell the securities of the company (ies) mentioned herein. ESPL and its associates collectively do not own (in their proprietary position) 1% or more of the equity securities of the subject company mentioned in the report as the last day of the month preceding the publication of the research report. ESPL or its Analyst or Associates did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ESPL nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. ESPL has not been engaged in market making activity for the subject company. The Research Analyst engaged in preparation of this Report:- (a) has not received any compensation from the subject company in the past twelve months; (b) has not managed or co-managed public offering of securities for the subject company in the past twelve months; (c) has not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months; (d) has not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months; (e) has not received any compensation or other benefits from the subject company or third party in connection with the research report; (f) might have served as an officer, director or employee of the subject company; (g) is not engaged in market making activity for the subject company. This document is not directed 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, regulation or which would subject ESPL and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to a certain category of investors. Persons in whose possession of this document are required to inform themselves of, and to observe, such applicable restrictions. Please delete this document if you are not authorized to view the same. By reading this document you represent and warrant that you have full authority and all rights necessary to view and read this document without subjecting ESPL and affiliates to any registration or licensing requirement within such jurisdiction. This document has been prepared solely for information purpose and does not constitute a solicitation to any person to buy, sell or subscribe any security. ESPL or its affiliates are not soliciting any action based on this report. The information and opinions contained herein is from publicly available data or based on information obtained in good faith from sources believed to be reliable but ESPL provides no guarantee as to its accuracy or completeness. The information contained herein is as on date of this report, and is subject to change or modification and any such changes could impact our interpretation of relevant information contained herein. While we would endeavour to update the information herein on reasonable basis, ESPL and its affiliates, 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 ESPL and its group companies from doing so. This document is prepared for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document including the merits and risks involved. This document is intended for general circulation and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. ESPL and its group companies, employees, directors and agents accept no liability, and disclaim all responsibility, for the consequences of you or April 26, 2018 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 9 of 10

10 anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. ESPL/its affiliates do and seek to do business with companies covered in its research report. Thus, investors should be aware that the firm may have conflict of interest. A graph of daily closing prices of securities is available at and (Choose a company from the list on the browser and select the three years period in the price chart). Disclosure of Interest statement for the subject Company Yes/No If Yes, nature of such interest Research Analyst or Relatives financial interest Research Analyst or Relatives actual/beneficial ownership of 1% or more Research Analyst or Relatives material conflict of interest No No No Disclaimer for U.S. Persons ESPL/its affiliates are not a registered broker dealer under the U.S. Securities Exchange Act of 1934, as amended (the 1934 act ) and under applicable state laws in the United States. In addition Equirus is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the Acts ), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Equirus, including the products and services described herein are not available to or intended for U.S. persons. The information contained in this Report is not intended for any person who is a resident of the United States of America or a resident of any jurisdiction, the laws of which imposes prohibition on soliciting the securities business in that jurisdiction without going through the registration requirements and/ or prohibit the use of any information contained in this report. This Report and its respective contents do not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. "U.S. Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US Persons" under certain rules. April 26, 2018 Analyst: Dhaval Dama dhaval.dama@equirus.com ( / ) Page 10 of 10