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1 Sept 21, Essel Propack Ltd (EPL) No. of shares (m) Mkt cap (Rs crs/$m) 3514/524.4 Current price (Rs/$) 224/3.3 Price target (Rs/$) 298/ W H/L (Rs.) 234/132 Book Value (Rs/$) 64/1.0 Beta 0.6 Daily volume (avg. monthly) P/BV (FY17e/18e) 3.1/2.7 EV/EBITDA (FY17e/18e) 8.7/7.8 P/E (FY17e/18e) 17.1/14.2 EPS growth (FY16/F17e/18e) 31.6/13.6/20.3 OPM (FY16/17e/18e) 19.1/18.8/18.5 ROE (FY16/17e/18e) 20.6/19.5/20.3 ROCE(FY16/17e/18e) 13.0/14.1/15.7 D/E ratio (FY16/17e/18e) 0.7/0.5/0.4 BSE Code NSE Code ESSELPACK Bloomberg ESEL IN Reuters ESSL.BO Shareholding pattern % Promoters 57.0 MFs / Banks / FIs 4.1 Foreign 12.4 Govt. Holding 0.0 Public & Others 26.5 Total As on June 30, 2016 Recommendation BUY Phone: + 91 (33) E- mail: research@cdequi.com Company Brief Essel Propack Ltd is the largest specialty packaging company globally, manufacturing laminated plastic tubes catering to the FMCG and pharma space. It has its units operating in oral care, pharma and health, food and beauty and cosmetics market in various countries across the world. Highlights To augment its business, Essel Propack counts on the unceasing share of non oral care category of its revenue which is targeted to even the share of oral care in a couple of years. It managed to add spin to its AMESA business last quarter, improving its non oral care share to 50.3% shouldered by strong recovery in cosmetic and pharma category in the Indian market. To bolster its overseas presence, Essel continues to eye on Europe segment which has a huge scope of capacity expansion (acquired 100% stake in Essel Deutschland Germany recently). Q1FY17 didn t turn out well for Europe EBIT margin dipped to 2.4%, down by 350 bps on account of issues of inventory correction and slower pitch in by new customers. Recently, Essel innovated in laminated plastic tube for packaging premium hair colorant and developers which has a business opportunity of 2.5 billion tubes globally. Striving hard to capture a decent market in high revenue generating non oral care (3-5% share globally), it is ramping up manufacturing units in China and Colombia which would aid the margins for there is copious scope to add value in beauty and cosmetics category there. Revenue growth in Q1FY16 remained dozy (down by 5.7%) on account of slower off take from key customers outside India. Operations in America are expected to boost its capacity expansion plans, while the focus to grow China s non oral market remains puzzled. Favored by 28% reduction in interest expenses, the profit after tax grew 6% to Rs crs ($5.6m) last quarter as against Rs crs ($5.3m) in the same period previous year. The stock currently trades at 17.1 FY17e EPS of Rs and 14.2x FY18e EPS of Rs Beset by the edgy performance of the subsidiaries at the onset of this fiscal, profit grew by a puny 6% in Q1. However, palatable outcomes emanating from expansion in Europe and AMESA region would boost revenue by 12.3% and profits by 16.9% (CAGR) over the next two years. Essel s peppy introduction of value added products would pad the operating margins ( %). Increasing consumer preferences towards personal care, FMCG brands will present Essel an opportunity to grow its non oral share market. Weighing all odds, we assign buy rating on the stock with a target of Rs 298 based on 19x FY18e earnings (peg ratio: 1.1) over a period of 9-12 months. Consolidated (Figures in Rs crs) FY14 FY15 FY16 FY17e FY18e Income from operations Other Income EBITDA (other income included) Profit after EO EPS(Rs) EPS growth (%)

2 [ Company Profile Incorporated in 1982, Essel Propack is a part of the USD 2.4 billion Essel Group, with a turnover of over USD 320 million and is the largest specialty packaging company globally, manufacturing laminated plastic tubes catering to the FMCG and Pharma space. Essel Propack is a producer of plastic packaging material in the form of multilayer collapsible tubes and laminates used primarily for packaging of toothpaste, personal care, cosmetics, pharmaceuticals, household and industrial products. The Company offers specialized large diameter laminated tubes with features such as thermal timers, product authentication, child protection and aroma sensory. It provides packaging solutions for products in paste or cream or gel forms. EPL functions through 21 state of the art facilities in 11 countries, selling more than 6 billion tubes and continuing to grow every year. Holding oral care market share of 36% in volume terms globally, Essel Propack is the world s largest manufacturer of laminated tubes with units operating across countries such as USA, Mexico, Colombia, Poland, Germany, Egypt, Russia, China, Philippines and India. The company s product range also includes the plastic tubes where it manufactures products ranging from custom colored materials to high-end decoration tubes. The company has in-house injection molding facility that is engaged in high quality closures. EPL has gradually shifted its focus from oral to non care category to diversify its product portfolio. It has embarked on a mission to grow the non oral care share of revenue to 50% and to grow net profit at a CAGR of 20% in a couple of years. Source: Essel Propack Source: Essel Propack Source: Essel Propack Product Portfolio Laminated Tubes Laminated tubes offer products a competitive edge in the market and are used across the globe for packaging in personal care, food, pharma and industrial applications. With excellent barrier properties, laminated tubes are a cost effective solution to help increase a product s shelf life. Their smooth, flexible and soft exteriors enable high filling line speed during the packaging process. Their features include shoulder barriers for superior flavor and moisture retention, pin-hole orifices for low viscosity products and nozzle seals with an option of hot foil stamping. Laminated tubes allow for consistent quality and performance reliability. They are adaptable to a wide range of caps, i.e. fez / flower pot, stand-up, flip-top and custom designed. Laminated tubes can be customized into different varieties of coloured tubes and transparent tubes with polyester barrier for products with contact clarity. 2 2

3 Seamless Plastic Tubes Believed to be the most ideal packaging solution for the cosmetic industry, due to its high aesthetic value and easy adaptability to numerous decorative forms, the seamless plastic tube business is an exciting horizon for the packaging industry. Through constant innovation, Essel has been successfully manufacturing and delivering plastic tubes to new and emerging sectors. The acquisition of Arista Tubes, a leading manufacturer of plastic tubes in the United Kingdom, has helped Essel to absorb comprehensive and cutting-edge knowledge and experience in the sector. Caps & Closures Essel manufactures special caps and closures for products other than tubes, such as closures for hair care and personal care product bottles. The unique innovations have added a great amount of ease to the delivery of products. The company provides comprehensive one-stop solutions right from concept development and product design to the final product assembly. It uses rapid prototyping (SLS) technology to provide a replica of an actual closure before it starts production on a large scale. Laminates The laminates are composite materials made from linear low density polyethylene (LLDPE) that form the core barrier of the tube body. They help keep contents fresh and safe with multiple layers of foil. Customized Specialty Laminates - The facilities in China and India work proficiently with the creativity and innovation teams, customizing specialty laminates. Essel offer new web structures for aggressive products or simply provide a distinct visual element to the material. Aluminum Barrier Laminates (ABL) - ABL tubes have an aluminum foil barrier, which provides superior light, air and moisture barrier along with reduced flavor absorption. The material density offers a more durable tube and allows for additional dispensing of the products contents. Plastic Barrier Laminates (PBL)- PBL structures are a good option for packaging that needs to maintain its form and shape. It presents a more cosmetic look and is environmentally friendly. Special barriers can be provided such as EVOH (Ethylene Vinyl Alcohol Polymer) to offer strong chemical resistance. Standard material is offered in white or natural but specialty custom colours can also be developed. New Products 3 3

4 New Products Etain, a fully recyclable packaging tube, has been made using a percentage of recycled material with the aim of reducing the amount of virgin plastic in tube packaging. It contains up to 40% PCR HDPE plastic material; also the amount can be varied depending upon customer requirements and the nature of the product that is contained within the package. Etain tubes are typically used by FMCG companies for packaging various types of beauty and skin care, pharmaceutical and food products. Egnite is a high-luster laminate available in a variety of shades. Its metallic feel enhances its ability to offer a striking level of product differentiation. With material that provides a protective barrier and resilient bounce-back properties, it helps the tube maintain shape and form, while also creating a distinctive aesthetic effect with a surface so lustrous that it is reflective. It facilitates complex printing with novel colours and effects, changing the appearance for laminated tubes. Green Maple Leaf is an eco-friendly laminated tube that maintains the freshness of products while keeping in line with the commitment towards the environment and society. This fully-recyclable packaging solution helps prevent oxidization of contents with a proprietary oxygen-barrier coated core layer and an all-polyethylene (PE) film multilayer laminate. It is especially suited for cosmetics, toiletries and food products. The recyclable, all-plastic laminate helps in reducing a product s carbon footprint, making it the best eco-friendly choice to keep products fresh. Investment Thesis Packaging Industry Buttressed by development across consumer and industrial market that uses flexible films, improvements in manufacturing practices, and continued technological innovations, the packaging market has been able to grow and evolve thereby shaping the packaging industry trends. The Indian packaging industry which constitutes about 4% of the global packaging industry is expected to reach $72.6 billion in 2020 from $31.7 billion in 2015 (see chart). In the coming years, the packaging industry is anticipated to register 18% annual growth rate, with the flexible packaging and rigid packaging expected to grow annually at 25% and 15% respectively (Source: FICCI, Jan 2016). Source: Smithers Pira Source: FICCI Source: Industry ARC Rising per capita income and rising trends of sustainable packaging are accelerating the demand for squeeze tubes and laminated tubes. Consumer preference in emerging economies such as China, India, Brazil, and South Africa are gradually transitioning from traditional packaging to new innovative packaging. The reason behind this is the high disposable income. However, the market for laminated tube packaging is observed to mature in developed economies, such as Europe and North America. The Europe region formed the largest market for tube packaging, in terms of volume, having accounted for 12 billion tubes in Asia-Pacific formed the second-largest market, with a share of 27%. The Asia-Pacific region is projected to be the fastest-growing market for tube packaging from 2015 to The global market for tube packaging is projected to grow at a CAGR of 6.7% from 2015, to reach $8.6 billion by 2020 (Source: marketsandmarkets.com). 4 4

5 The market for tube packaging is driven by the growth in the flexible packaging industry (to grow at an annual rate of 3.4% during the period to US$248 billion). The increasing population with high disposable incomes has encouraged the end users to spend more on such type of packaging, which facilitate ease of use. The biggest end users of packaging, the food and beverages will help to drive the packaging demand, by growing at a CAGR of 25% in the period (Source: FICCI). Beside food & beverages, the pharmaceuticals is another major user of packaging which has become the major part of the drug delivery system. With the overall drug approvals given by the USFDA to Indian companies doubling in FY16, the Indian pharma market is expected to grow 13-15% annually in the period to $55 billion from $30 billion in Expansion plans The major suppliers of tubes and packaging for oral care makers and other consumer goods firm have restructured their operations and have shifted their focus to the high revenue generating non oral care tube market. At present, for Essel, the non oral care category accounts for 41.8% (41.2% in FY15) of the total revenues brought by the robust growth of 24.3% in the EAP region. With increasing operations in USA, China and Europe regions, Essel pegs an opportunity to have a 22 billion non oral tube market of over $2.5 billion in a couple of years. The manufacturing capabilities set up in Egypt, China and Colombia will cater to the FMCG and cosmetic brands in Middle East and other developed markets while in the emerging markets the pharma market will grow, which will help to drive the revenue upwards. Essel eyes huge growth in the hair care market in African regions and has introduced the latest plastic barrier laminate tube with inviseam technology, and high decor using its own elite printing platform. It has established the gateway to South America by opening a new modern factory at Colombia. This facility will have the capacity to manufacture 180 million tubes a year and help Essel expand its laminated tubes market to adjacent Andean markets of Ecuador, Peru, Bolivia, Chile etc., satisfying both export and local demand. Financials and Valuations The slow off take in the non oral care category in the Indian market along with the divestment of EPL s stake in Packaging India Pvt Ltd contracted the revenues by 6% last fiscal to Rs crs ($326.0m). On adjusted basis (excluding divestiture), the growth was seen at 3%-the lowest recorded in last five years. Lower realizations ensuing pass through to customers of the sharp reduction in the raw material prices muted the topline growth last year. The domestic sales were severely affected due to sluggishness in the FMCG sector and some export related issues in the pharma market. Source: EPL, CD Equisearch Source: EPL, CD Equisearch Source: EPL, CD Equisearch Though the operations in the AMESA region look a little wobbly, EAP and the Europe regions have managed to post robust numbers in FY16. The continuous focus to foray into niche oral care brands and increase the share of non oral care tube market in these regions have been reflected in the margins. In the EAP segment EBIT margin expanded by 301 bps to 15.9% in FY16 (12.9% in FY15) mainly due to improved operational efficiency and increasing non oral care sales. The steady ramp up in the manufacturing operations in China to cater to premium Chinese customers is expected to push up the margins in the next two years. 5 5

6 Source: EPL, CD Equisearch Source: EPL, CD Equisearch Source: EPL, CD Equisearch Also, strong market presence in America and Europe has enabled the company to tap the new generation (high luster, recyclable) laminated tubes to non oral care customers; the share of non oral care revenue in Americas segment jumped by 2.1% to 29.6% in FY16. Contributing nearly 20.5% to the overall sales, the Americas segment will be able to seize the export market with further capacity expansion in Columbia. High vulnerability in currency devaluation has led units in Russia and Mexico to pester the overall growth. However, improvement in the volumes, lower raw material prices and better product mix has helped the overall operating margin to expand by 226 bps to 19.1% last fiscal. Continuous repayment of its long term debt has improved its debt equity from 1.2 in FY15 to 0.7 in FY16. We expect the leverage to further improve and go down to levels of 0.4 in the next two years. Supported by the reduction in interest cost, the profit after tax (adjusted for extraordinary) grew by 31.6% to Rs crs ($27.0m) in FY16 as against Rs crs ($20.5m) in With FY15. Considering growing revenue the huge base size of Indo the non Count oral care needs markets to punch and increasing above its awareness weight among to stay customers competitive. about the superior barrier properties and decoration capability of the laminated tubes, the bottom-line is expected to grow at a CAGR of 16.9% Slowdown in sales is apparent: revenues in Q3 grew at lowest rate in atleast four quarters; over the next two years to Rs 205.3crs ($30.6m) and Rs crs ($36.8m) in FY17 and FY18 respectively. revneus projected to grow by 16.6% (annual) over the next two years (see chart). So value addition holds the key. It unvieled new categories of home textiles - fashion bedding, utility bedding and institutional bedding - in FY15. Better product mix partly showed up in jaw-dropping gains (+690 bps) in operating margins in 9MFY16; other factors which supported margins include higher capacity utilization, prudent raw material sourcing and benefits of operating leverage. Yet gains would be difficult to sustain not least due to increasing competition (Welspun India has recently ramped up its bed linen capacity by 12 mn meters to 72 mn meters and plans to further increase it to 90 mn meters by FY17) and base effect. Source: EPL, CD Equisearch Source: EPL, CD Equisearch Source: EPL, CD Equisearch The stock currently trades at 17.1 FY17e EPS of Rs and 14.2x FY18e EPS of Rs Beset by the edgy performance of the subsidiaries at the onset of this fiscal, profit grew by a puny 6% in Q1. However, palatable outcomes emanating from expansion in Europe and AMESA region would boost revenue by 12.3% and profits by 16.9%, CAGR over the next two years. Essel s peppy introduction of value added products would pad the operating margins ( %). Increasing consumer preferences towards personal care, FMCG brands will present Essel an opportunity to grow its non oral share market. Weighing all odds, we assign buy rating on the stock with a target of Rs 298 based on 19x FY18e earnings (peg ratio: 1.1) over a period of 9-12 months. Source: EPL, CD Equisearch Source: EPL, CD Equisearch Source: EPL, CD Equisearch 6 6

7 [ Risks and Concerns Raw material prices Increasing volatility in the prices of raw material such as polymer and aluminium foil (for manufacturing laminated tubes) enables the selling prices to be revised periodically to reflect the variation in the material costs. At present, raw material costs constitute 49% of EPL s revenues and sharp fluctuation in the crude oil prices may make the topline growth and margins highly vulnerable. Dependence on oral care market Being an essential consumer product and an item of daily use, oral care as a category still dominates EPL s product range albeit to a much lesser extent than before. However, it also tends to have a stable demand in an adverse economic environment which can affect the volume numbers globally. Though the share of the non oral share in the Indian and the American markets are increasing, regions like China and Europe nations are facing some pressure. Currency volatility The global nature of operations exposes the Company to multiple currencies; fluctuations in exchange rates could affect Essel s performance. Though the company has systematically hedged its trade and capital exposures using forward contracts, significant currency movement leads to revisions in prices of finished products-impact on raw material costs. Other factors Since a large portion of its revenue is derived from the FMCG sector, any slowdown in this sector due to higher inflation can hit the revenue growth. Rural distress, arising due to vagaries of monsoon can also fetter the company s revenue as it will have an impact on the demand of consumer goods. Moreover, the competitive environment for EPL can put pressure on volume growth and pricing. Cross Sectional Analysis Company Equity* CMP MCAP* Sales* Profit* OPM (%) NPM (%) Int Cov ROE (%) Mcap/Sales Essel Propack Huhtamaki Jindal Poly Uflex P/BV P/E *figures in crores; calculations on ttm basis Book value adjusted for goodwill & revaluation reserves wherever applicable Source: Company, CD Equisearch Source: Company, CD Equisearch Source: Company, CD Equisearch CY for Huhtamaki Note: All $ value figures in the write up are translated at current exchange rate 7 7

8 Financials Consolidated Quarterly Results Figures in Rs crs Q1FY17 Q1FY16 % chg FY16 FY15 % chg Income From Operations Other Income Total Income Total Expenditure EBITDA (other income included) Interest Depreciation PBT Tax PAT Minority Interest Share of Associate PAT after MI Extraordinary Item Net Profit EPS(Rs) Segment Result 8 Figures in Rs crs Q1FY17 Q1FY16 % chg FY16 FY15 % chg Segment Revenue AMESA EAP AMERICAS EUROPE Unallocated Inter segmental elimination Net Sales Segment EBIT AMESA EAP AMERICAS EUROPE Unallocated Inter segmental elimination Total Other Income Other expenses EBIT Finance Cost PBT

9 Consolidated Income Statement Figures in Rs crs FY14 FY15 FY16 FY17e FY18e Income From Operations Growth (%) Other Income Total Income Total Expenditure EBITDA (other income included) Interest Depreciation PBT Tax PAT Minority Interest Share of Associate PAT after MI Extraordinary Item Net Profit EPS (Rs) Segment Result Figures in Rs crs FY14 FY15 FY16 Segment Revenue AMESA EAP AMERICAS EUROPE Unallocated Inter segmental elimination Net Sales Segment EBIT AMESA EAP AMERICAS EUROPE Unallocated Inter segmental elimination Total Other Income Other expenses EBIT Finance Cost PBT

10 Consolidated Balance Sheet Figures in Rs crs FY14 FY15 FY16 FY17e FY18e Sources of Funds Share Capital Reserves Total Shareholders' Funds Minority Interest Long Term Debt Total Liabilities Application of Funds Gross Block Less: Accumulated Depreciation Net Block Capital Work in Progress Investments Current Assets, Loans & Advances Inventory Trade Receivables Cash and Bank Short term loans Other Assets Total CA & LA Current Liabilities Provisions-Short term Total Current Liabilities Net Current Assets Net Deferred Tax Net long term assets Total Assets

11 Key Financial Ratios FY14 FY15 FY16 FY17e FY18e Growth Ratios (%) Revenue EBITDA Net Profit EPS Margins (%) Operating Profit Margin Gross profit Margin Net Profit Margin Return (%) ROCE ROE Operating return on assets Valuations Market Cap/ Sales EV/EBITDA P/E P/BV Other Ratios Interest Coverage Debt Equity Current Ratio Dividend Payout Ratio Turnover Ratios Fixed Asset Turnover Total Asset Turnover Debtors Turnover Inventory Turnover Creditor Turnover WC Ratios Debtor Days Inventory Days Creditor Days Cash Conversion Cycle

12 Cumulative Financial Data Rs crs FY10-12 FY13-15 FY16-18 Income from operations Operating profit EBIT PBT PAT after MI & AP Dividends** OPM (%) NPM (%) Interest coverage Debt-equity* ROE (%) ROCE (%) Fixed asset turnover Debtors turnover Creditors turnover Inventory turnover Debtor days Inventory days Creditor days Cash Conversion Dividend payout ratio (%) FY10-12 implies three years ending FY12. *as on terminal year **includes CDT on subsidiary dividends Reliance on non-oral care segment by ramping up capacity expansion in India for laminated tubes in FY13 coupled with increasing revenues from US plastic units in period FY13-15, boosted income from operations by 34.4% to Rs 6281 crs ($937.2m) in the period FY13-15 compared to the period FY The operating margins were maintained at a stable rate of ~17% due to raw material price pass through effect. Relentless focus on reducing its financial leverage through enhanced capital productivity and improved cash generation helped EBIT to multiply 2.1 times in period FY13-15 from FY10-12, while the debt-equity ratio revamped to 1.2 from 1.8 in the same period. Optimistic approach by the company in scaling up its operations in China and US and expanding presence globally through acquisitions will help Essel to nearly double its profits in the period FY16-18 to Rs 633 crs ($94.4m) compared to Rs 323 crs ($48.3m) in the period FY Essel has been able to actualize its target of providing good return on its capital; ROE and ROCE is expected to jump to 20.2% and 14.0% respectively in the period FY

13 Financial Summary US dollar denominated FY14 FY15 FY16 FY17e FY18e Equity capital Shareholders' funds Total debt Net fixed assets (inc CWIP) Investments Net current assets Total assets Revenues EBITDA PBDT PBT Profit after minority & extraordinary items EPS ($) Book Value ($) Historical income statement figures translated at average rates; balance sheet at year end rates; projections (FY17&18) at current rates All dollar denominated figures are adjusted for extraordinary items

14 Recommendation Buttressed by development across consumer and industrial market that uses flexible films, improvements in manufacturing practices, and continued technological innovations, the packaging market has been able to grow and evolve thereby shaping the packaging industry trends. The Indian packaging industry which constitutes about 4% of the global packaging industry is expected to reach $72.6 billion in 2020 from $31.7 billion in In the coming years, the packaging industry is anticipated to register 18% annual growth rate, with the flexible packaging and rigid packaging expected to grow annually at 25% and 15% respectively (Source: FICCI, Jan 2016). To augment its business, Essel Propack counts on the unceasing share of non oral care category of its revenue which is targeted to even the share of oral care in a couple of years. It managed to add spin to its AMESA business last quarter, improving its non oral care share to 50.3% shouldered by strong recovery in cosmetic and pharma category in the Indian market. Essel eyes huge growth in the hair care market in African regions and has introduced the latest plastic barrier laminate tube with inviseam technology, and high decor using its own elite printing platform. It has established the gateway to South America by opening a new modern factory at Colombia. This facility will have the capacity to manufacture 180 million tubes a year and help Essel expand its laminated tubes market to adjacent Andean markets of Ecuador, Peru, Bolivia, Chile etc., satisfying both export and local demand. The slow off take in the non oral care category in the Indian market along with the divestment of EPL s stake in Packaging India Pvt Ltd contracted the revenues by 6% last fiscal to Rs crs ($326.0m). On adjusted basis (excluding divestiture), the growth was seen at 3%-the lowest recorded in last five years. Lower realizations ensuing pass through to customers of the sharp reduction in the raw material prices muted the topline growth last year. The domestic sales were severely affected due to sluggishness in the FMCG sector and some export related issues in the pharma market. Since a large portion of its revenue is derived from the FMCG sector, any slowdown in this sector due to higher inflation can hit the revenue growth. Rural distress, arising due to vagaries of monsoon can also fetter the company s revenue as it will have an impact on the demand of consumer goods. Moreover, the competitive environment for EPL can put pressure on volume growth and pricing. The stock currently trades at 17.1 FY17e EPS of Rs and 14.2x FY18e EPS of Rs Beset by the edgy performance of the subsidiaries at the onset of this fiscal, profit grew by a puny 6% in Q1. However, palatable outcomes emanating from expansion in Europe and AMESA region would boost revenue by 12.3% and profits by 16.9%, CAGR over the next two years. Essel s peppy introduction of value added products would pad the operating margins ( %). Increasing consumer preferences towards personal care, FMCG brands will present Essel an opportunity to grow its non oral share market. Weighing all odds, we assign buy rating on the stock with a target of Rs 298 based on 19x FY18e earnings (peg ratio: 1.1) over a period of 9-12 months

15 Disclosure& Disclaimer CD Equisearch Private Limited (hereinafter referred to as CD Equi ) is a Member registered with National Stock Exchange of India Limited, Bombay Stock Exchange Limited and Metropolitan Stock Exchange of India Limited (Formerly known as MCX Stock Exchange Limited). CD Equi is also registered as Depository Participant with CDSL and AMFI registered Mutual Fund Advisor. The associates of CD Equi are engaged in activities relating to NBFC-ND - Financing and Investment, Commodity Broking, Real Estate, etc. CD Equi is registered under SEBI (Research Analysts) Regulations, 2014 with SEBI Registration no INH Further, CD Equi hereby declares that No disciplinary action has been taken against CD Equi by any of the regulatory authorities. CD Equi/its associates/research analysts do not have any financial interest/beneficial interest of more than one percent/material conflict of interest in the subject company(s) (kindly disclose if otherwise). CD Equi/its associates/research analysts have not received any compensation from the subject company(s) during the past twelve months. CD Equi/its research analysts has not served as an officer, director or employee of company covered by analysts and has not been engaged in market making activity of the company covered by analysts. This document is solely for the personal information of the recipient and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved) and should consult their own advisors to determine the merits and risks of such an investment. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. CD Equi or any of its affiliates/group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. CD Equi has not independently verified all the information contained within this document. Accordingly, we cannot testify nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While, CD Equi endeavors to update on a reasonable basis the information discussed in this material, there may be regulatory compliance or other reasons that prevent us from doing so. This document is being supplied to you solely for your information and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Neither, CD Equi nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. CD Equisearch Private Limited (CIN: U67120WB1995PTC071521) Registered Office: 37, Shakespeare Sarani, 1st Floor, Kolkata ; Phone: +91(33) ; Fax: +91(33) Corporate Office: 10, Vasawani Mansion, 2nd Floor, Dinshaw Wachha Road, Churchgate, Mumbai Phone: +91(22) /0653; Fax: +91(22) 2283, 2276 Website: research@cdequi.com buy: >20% accumulate: >10% to 20% hold: -10% to 10% reduce: -20% to <-10% sell: <-20% 15 15