IndusInd Bank (INDBA) 1125

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1 Result Update Rating matrix Rating : Buy Target : 1250 Target Period : 12 months Potential Upside : 11% What s Changed? Target Changed from 1060 to 1250 EPS FY17E Unchanged EPS FY18E Unchanged Rating Changed from Hold to Buy Quarterly Performance Q1FY17 Q1FY16 YoY (%) Q4FY16 QoQ (%) NII 1, , Other income PPP 1, , PAT Key Financials Crore FY15 FY16 FY17E FY18E NII 3, , , ,894.9 PPP 3, , , ,311.9 PAT 1, , , ,638.2 Valuation summary FY15 FY16 FY17E FY18E P/E Target P/E P/ABV Target P/ABV RoE RoA Stock data Market Capitalisation Crore GNPA (Q1FY17) 861 Crore NNPA (Q1FY17) 356 Crore NIM (%) (Q1FY17) week H/L 1148 /799 Net worth Crore Face Value 10 DII Holding (%) 11.8 FII Holding (%) 43.5 Price performance (%) Return % 1M 3M 6M 12M Yes Bank Axis Bank Indusind Bank Research Analyst Kajal Gandhi kajal.gandhi@icicisecurities.com Vasant Lohiya vasant.lohiya@icicisecurities.com Vishal Narnolia vishal.narnolia@icicisecurities.com Consistent performance on all fronts... July 12, 2016 IndusInd Bank (INDBA) 1125 IndusInd Bank reported yet another healthy quarter. The bank remains one of the few banks delivering consistently on the operational front. Operating profit increased higher than estimate at 34% YoY mainly led by 38% YoY rise in NII to 1356 crore Business traction stayed strong with loans increasing 29.7% YoY to crore. Deposit grew higher-than-expected at 31% YoY to crore mainly led by bulk deposits due to fall in market rates Retail book growth at 29% YoY to crore was a tad below the corporate book rise of 30% YoY to crore, which was aided by the diamond portfolio acquired in Q2FY16. The CF book may accelerate faster than corporate book, going ahead The asset quality was under control as expected. Total slippages incrementally was lower QoQ at 253 crore mainly led by lower slippages from the corporate segment at 94 crore vs. 106 crore in Q4FY16. The restructured book reduced from 0.53% to 0.49% Turnaround done successfully; growth ahead of industry to sustain After taking over in early 2008, the current management has transformed IndusInd Bank (IIB) from low and volatile B/S growth to steady and sustainable growth with strong profitability. We like the fact that the transformation has been a qualitative one (RoA up from 0.3% to 1.9% as on FY16) despite the turbulent economic scenario. The loans, deposits and PAT traction improved to 27%, 22% and 53% CAGR in FY08-16 from 12%, 13% and -35% in FY05-08, respectively. The loan and deposit grew 29.7% and 31% to crore and crore, respectively, as on Q1FY17. IIB s loan mix is 41.2% consumer finance (CF) (~80% of which is high vehicle financing) and 58.8% corporate banking (CB) (working capital in nature and well diversified across industries). We factor in 24.7% loan CAGR over FY16-18E to crore. NIMs improve sharply; believe healthy levels to stay on rising CF book IIB maintained calculated NIM of over 3.7% in the past while Q1FY17 NIM was at 3.97%. In the past six years, reported NIM improved from 1.7% to 3.8% as on FY16. Such a structural improvement was led by an improvement in CASA franchise (doubled to >30% in the past six years), helping keep CoF under control across various cycles. The impact of MCLR is seen as minimal with 72% of book being fixed. We expect calculated NIM to stay healthy at ~4% by FY18E on rising CF proportion. Diversified asset book enables superior asset quality IIB has fared well over the years in terms of asset quality with the GNPA ratio improving from 3.1% in FY08 to 1% by FY11 and maintained 0.91% now. Diversification led to a steady performance on the asset quality front. Concerns surrounding the CV portfolio (16% of loans) are receding. The book is witnessing healthy growth. Going ahead, we expect the GNPA ratio to rise to 1.1% at 1448 crore by FY18E. Consistency & strong visibility in earnings provide comfort; BUY IIB has continued to deliver a strong performance leading to continuous re-rating in multiple. Normalised return ratios of ~18% RoE, 2% RoA provide comfort. We largely maintain our estimates and expect PAT CAGR at 26% to 3638 crore by FY18E. However, we revise our target price higher to 1250 from 1060 earlier as we assign higher multiple of 3.2x FY18E ABV. Positive levers on the credit growth side, margin side and operating side (benefits of investing in technology) provide comfort. We have a BUY recommendation on the stock. ICICI Securities Ltd Retail Equity Research

2 Variance analysis Q1FY17 Q1FY17E Q1FY16 YoY (%) Q4FY16 QoQ (%) Comments NII 1,356 1, , NII traction was higher-than-expected largely due to higher-than-expected traction in loans and margins NIM (%) bps bps Margins continued with improving trajectory on a QoQ basis. Going ahead, the management expects margins to stay strong owing to decling system rates and 72% of assets being fixed rate Other Income Net Total Income 2,329 2,203 1, , Staff cost Other Operating Expenses PPP 1,234 1, , Provision PBT 1, Tax Outgo PAT Operating expenses were higher as the bank is investing in technology. The benefits would accrue by FY18E in terms of a decline in cost to income ratio from 47% levels currently During Q1FY17E, the bank made 35 crore (at 15% of loans) standard provision in related to exposure to food credit in Punjab Key Metrics GNPA Slippages were lower QoQ at 253 crore vs. 274 crore in Q4FY16. Sale to ARCs in Q1FY16 was 17 crore. Total sale to ARCs in FY16 was at 270 crore. Two accounts slipped from restructured book in Q1FY17 NNPA PCR was maintained at 59% Total Restructured assets Restructured loans as a percentage of total credit improved further to 0.49% of loans from 0.53% as on Q4FY16 Change in estimates FY17E FY18E ( Crore) Old New % Change Old New % Change Net Interest Income 5,678 5, ,895 6, Pre Provision Profit 5,186 5, ,312 6, NIM(%) (calculated) bps bps PAT 2,945 2, ,638 3, ABV per share ( ) Assumptions Current Earlier FY15 FY16 FY17E FY18E FY17E FY18E Credit growth (%) Deposit Growth (%) CASA ratio (%) NIM Calculated (%) Cost to income ratio (%) GNPA ( crore) , , , ,448.1 NNPA ( crore) Slippage ratio (%) Credit cost (%) ICICI Securities Ltd Retail Equity Research Page 2

3 Company Analysis Ideal loan book; better than industry growth to stay... IIB s total credit book as on FY16 was at crore. The credit traction has been strong at 27% CAGR in the past six years and way ahead of the industry, which grew at 18% CAGR. The composition/mix of the loan book is ideal with the consumer finance (CF) book and corporate banking book (CB book) accounting for 41.3% and 58.7%, respectively, as on FY16. Excluding ~ 4100 crore acquired diamond portfolio, the CF proportion is 43%. The bank has guided at maintaining 1:1 distribution of the total loan between CF and CB book, going ahead. Thus, CF book could witness higher traction led by CV financing. We expect advances growth to stay well above the system at 24.7% CAGR over FY16-18E to crore The CF book, amounting to crore as on Q1FY17, is well diversified (see exhibit 1) but remains largely vehicle finance focused (~80% of CF book). Going forward, we expect the CF book to be a major driver of overall loan book traction. We factor in 30% CAGR in the CF book over FY16-18E to crore. Exhibit 1: CV portfolio expected to witness further up tick in H2FY17E Consumer Finance Book crore FY13 FY14 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Comm. Vehicle 9,970 9,614 10,618 11,405 12,360 13,204 14,101 13,847 Utility Vehicle 1,789 2,050 2,017 2,043 2,037 2,041 2,058 2,097 Three Wheelers 2,121 1,932 1,843 1,860 1,938 2,019 2,045 2,133 Two Wheelers 1,919 2,512 2,808 2,829 2,857 3,034 3,045 3,076 Car loans 2,051 2,642 3,146 3,293 3,539 3,754 3,917 4,076 Equip. financing 2,708 2,854 2,816 2,827 2,861 3,036 3,244 3,435 Credit card ,008 1,204 1,258 Loan against prop. 1,401 2,473 3,705 4,032 4,331 4,759 5,248 5,585 Personal.others etc ,147 1,393 1,687 1,855 Total 22,401 24,785 28,412 30,007 31,956 34,249 36,549 38,591 YoY Growth IIB s CB book at crore as on Q1FY17 is largely inclined towards working capital finance. Further, the book is broadly diversified into three major categories (see exhibit 1) such as large corporate, mid-corporate and loans to small business. Again, in terms of sectors, the CB portfolio is well diversified among sectors. We expect the CB book to post a CAGR of 21% over FY16-18E to crore. During Q2FY16, traction in the mid-corporate segment looks higher at 58% YoY as the bank incorporated the gems & jewellery portfolio of 4100 crore that was acquired from RBS. IIB already has such a portfolio around 1500 crore. With this acquisition, the bank becomes one of the largest financiers in this segment across industry. During Q1FY17, the corporate book grew 30.4% YoY to crore led by mid-corporate segment. Exhibit 2: Break up of corporate book Corporate Banking Book crore FY13 FY14 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Large corporates 11,841 15,086 19,964 21,475 20,785 22,022 25,258 27,323 Mid corporates 6,484 9,693 11,455 11,885 16,135 16,042 16,624 17,119 Small business 3,595 5,538 8,957 8,876 9,419 9,854 9,988 10,645 Total 21,920 30,317 40,376 42,236 46,339 47,918 51,870 55,087 YoY Growth We expect the loan book traction to stay ahead of industry at 24.7% CAGR over FY16-18E. ICICI Securities Ltd Retail Equity Research Page 3

4 Exhibit 3: Overall advances growth expected to be ahead of industry crore FY13 FY14 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Total Advances YoY Growth We expect CASA CAGR of 27% over FY16-18E at crore and expect CASA ratio at 37.1% Impressive improvement in liability franchise IIB s deposits also witnessed a sharp traction of 22% CAGR in FY08-16 to crore. More notable is the improvement in quality of the liability franchise. The CASA ratio in the period has doubled to 35.2% of deposits currently owing to a rising branch presence (up from 210 in FY10 to over 1000 as on FY16), innovative services & SA deregulation in Q2FY12. Going ahead, we expect the deposit base to increase at 23% CAGR in FY15-17E to crore. We have built in a CASA CAGR of 27% in FY16-18E to crore and expect the CASA ratio at 37.1%. A major upside to our CASA ratio estimates could be the opening up of the agency business of the RBI, which would lead to a sharp increase in CA balances for the bank. Currently, it is restricted to only a few large banks. High growth in deposits of 31% YoY during Q1FY17 was largely led by bulk deposits due to decline in markets rates. In the last quarter, three months to 12 months CD rates have fallen in the range of bps. Exhibit 4: Deposit traction remains healthy Crore FY13 FY14 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Savings 7,033 9,915 12,944 14,016 15,046 16,125 17,246 19,091 Current 8,835 9,776 12,356 12,929 13,039 14,107 15,478 15,952 Term 38,249 40,811 48,835 50,748 52,755 56,191 60,276 66,725 Total Deposits 54,117 60,502 74,134 77,693 80,840 86,423 93, ,768 YoY Growth CASA Amount 15,868 19,691 25,300 26,945 28,085 30,232 32,724 35,043 CASA% Source: Company quarterly presentation, ICICIdirect.com Research Margins to stay among best in class IIB s FY16 calculated NIM of 3.97% is highest after HDFC Bank and Kotak Mahindra Bank. We expect calculated NIMs to improve further over FY16-18E owing to enhanced growth in the CF book led by CV financing and a further improvement in the CASA franchise. The high yielding nature of the loan book as well as healthy CASA franchise has enabled IIB to maintain such strong margins of ~ % for the past four years. In consumer financing, blended yields are ~15% while in the corporate space yields are at ~10-11%. In the past four or five years, strong growth in the CASA franchise has helped in managing to keep CoF (calculated) in the range of % across cycles. The management remains confident of maintaining quarterly NIMs at healthy levels. In a falling interest rate scenario, having ~72% of the loan book on fixed rate augurs well for IndusInd Bank s margins. ICICI Securities Ltd Retail Equity Research Page 4

5 Exhibit 5: Margins to stay healthy supported by improving CASA franchise and changing loan mix We have factored in calculated NIMs of ~4% for FY17E (%) FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E NIM (calculated) Yield on average assets (calculated) CoF(calculated) Source: Company quarterly presentation, ICICIdirect.com Research * YoA =yield on assets, CoF = cost of funds Diversified book enables superior asset quality; expect slight glitch The asset quality of IIB has fared well over the years. GNPA and NNPA ratios have declined from 3.1% and 2.3% in FY08 to 1% and 0.3% by FY11, respectively. They remain at these levels currently. The steady performance is owing to IIB s peculiar loan mix. The CB book mainly consists of loans towards working capital, which is less risky than term loans. Further, the CB book is well diversified with exposure to stressed sectors such as iron & steel, commercial real estate (CRE), power, etc, at lower levels of ~1-2%. Also, the asset quality has been manageable in the CF book, which constitutes the balance half. In absolute terms, GNPA and NNPA were at 861 crore and 356 crore, respectively, as on FY16. Restructured assets (RA) at 459 crore as on Q1FY17 account for only 0.5% of the total loan book, which is one of the lowest in the industry. During Q1FY17, total slippages were lower at 253 crore vs. 274 crore (slippage ratio at 1.1% vs. 1.6% in Q4FY16). This was led by a fall in slippages in both segments. We expect absolute GNPA and NNPA of 1448 crore and 708 crore, respectively, as on FY18E. Despite this, IIB s asset quality remains manageable and appears better than the system. Exhibit 6: Asset quality remains acceptable Credit cost is also expected to be in the guided range of bps over FY16-18E. We expect GNPA and NNPA ratios of 1.1% and 0.5%, respectively, by FY18E ( Crore) 1,600 1,400 1,200 1, , , FY11 FY12 FY13 FY14 FY15 Q1FY16Q2FY16Q3FY16 FY16 FY17E FY18E (%) GNPA NNPA GNPA ratio (RHS) NNPA ratio (RHS) Source: Company quarterly press release and annual report, ICICIdirect.com Research ICICI Securities Ltd Retail Equity Research Page 5

6 Fee income: well diversified & growing at strong pace IIB s other income constitutes ~40% of its operating income. In other income, the major component is the fee income that accounts for ~90%. Various sources of fee income include trade & remittances, forex income, distribution fees, general banking, processing fees & investment banking (IB). The bank also has a tie-up with HDFC Ltd for sourcing home loans on its behalf for which it gets commission of ~1% and additional 0.2% in insurance. The other income witnessed a strong CAGR of 35%. In that, the core fee income grew at 39% CAGR in the last four years to 2772 crore, as on FY16. The management expects fee income to increase at a higher pace than loan growth. We have factored in total other income CAGR of 19% to 4646 crore over FY16-18E. Exhibit 7: Core fee income trend continues to be strong at 30% YoY in Q1FY17 Other income break up ( Crore) FY11 FY12 FY13 FY14 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Core fee income ,239 1, Securities/FX tradingothers Break up of fee income ( Crore) FY11 FY12 FY13 FY14 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Trade & Remittances Foreing Exchange Income Distribution Fees General Banking Loan Processing Fees Investment Banking Total ,239 1, Source: Company quarterly presentation, ICICIdirect.com Research Exhibit 8: Expanding branch and ATM network The bank added 199 new branches in FY16. Under Planning Cycle III, over FY14-17, the bank plans to double its branch network to ~ FY11 FY12 FY13 FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Branches ATM Source: Company quarterly presentation, ICICIdirect.com Research ICICI Securities Ltd Retail Equity Research Page 6

7 Outlook and valuation In the past three or four years, IIB has traded at premium valuations compared to its private sector counterparts, except HDFC Bank and Kotak Mahindra Bank. This is due to a sustained and structural improvement in earnings (up 3x in the last four years) and best in class return ratios with RoE of ~18-19% and RoA of 1.6% in the past four years. Further, the major factor on the back of which the stock got re-rated from time to time was that such a strong performance has been accomplished in a strained economic environment wherein the banking system has been plagued by declining growth and increasing deterioration in asset quality. IIB, owing to its ideal mix of the loan book (niche presence in vehicle finance), improving CASA franchise and lower exposure to stressed sectors was able to ring fence itself from major systemic concerns and deliver strong results. IIB continued to deliver a strong performance relative to peers despite a weak economy in the past two or three years. This is clearly reflected in the continuous re-rating in its multiple. Normalised return ratios of ~18% RoE and 2% RoA provide comfort. We have factored in capital raised (~ 5100 crore) in June 2015, which was book value accretive by ~22%, while the RoE is declined by ~350 bps to 16%. We largely maintain our estimates. Going ahead, PAT CAGR is seen at 26% to 3638 crore by FY18E. However, we revise our target price higher to 1250 from 1060 earlier as we assign higher multiple of 3.2x FY18E ABV. Positive levers on the credit growth front, margin front and operating front (benefits of investing in technology) provide comfort. We recommend BUY. Exhibit 9: Valuation NII Growth PAT Growth P/E ABV P/ABV RoA RoE ( cr) (%) ( cr) (%) (x) ( ) (x) (%) (%) FY15 3, , FY16 4, , FY17E 5, , FY18E 6, , ICICI Securities Ltd Retail Equity Research Page 7

8 Company snapshot ( ) 1,400 1,300 1,200 1,100 1, Jun-14 Sep-14 Nov-14 Feb-15 Apr-15 Jul-15 Sep-15 Nov-15 Feb-16 Apr Jul-16 (%) Source: Bloomberg, Company, ICICIdirect.com Research Price Idirect target Consensus Target Mean % Consensus with BUY Key events Date FY04 Jan-07 Feb-08 Mar-09 Event Ashok Leyland Finance (ALF), an NBFC, merged with IndusInd Bank, which enabled it to have a niche presence in the vehicle financing space Aviva Life Insurance and IndusInd Bank announce their tie-up as bancassurance partners A new management team headed by Romesh Sobti inducted from ABN Amro Bank NV, leading to a sharp turnaround of the bank The new management focused on improving liability franchise as low cost CASA ratio improved from 15.7% in FY08 to 29.3% in FY13. On the lending side, it reduced exposure to risky segments like unsecured loans and focused on high yielding-relatively less risky segments like CV, car loans, UV, three-wheelers, LAP, etc. FY11 IndusInd Bank enters into an agreement with Deutsche Bank to acquire its credit card business in India FY11 IndusInd Bank signs an MoU with HDFC Ltd for home loans FY11 Planning Cycle I (FY08-FY11) successfully achieved; launches Planning Cycle II (FY11-14) Dec-11 Savings rate deregulation in Q3FY12 wherein IIB offers higher rates (6% above 1 lakh and 5.5% up to 1 lakh) FY13 Branch network touches 500 and launches Planning Cycle III (FY14-FY16) Apr-13 On April 1, 2013, the bank included in the Nifty 50 benchmark index May-13 IndusInd was the best performing stock in the banking industry as it rose from 45 in FY09 to all-time high of 523. Jul-13 RBI tightens liquidity by raising MSF rate by 3% and various other measures. IndusInd impacted due to its high reliance on wholesale deposits (50%) Sep-13 Arrival of new RBI Governor changes sentiment, eases a few of the tight liquidity measures due to which the stock of IndusInd bounces back Jun-15 Raises around 5000 crore via QIP (including allotment to promoters) Top 10 shareholders Shareholding Pattern Rank Name Latest Filing % OS Position (m) Change (m) (in %) Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 1 Hinduja Group 31-Mar % M -1.54M Promoter Prans Asset Management, Ltd. 31-Mar % 21.01M -1.25M FII Global Investments Limited 31-Mar % 11.71M M DII Icon Capital Limited 31-Mar % 9.59M -5.17M Others UTI Asset Management Co. Ltd. 31-May % 9.50M +0.10M 6 J.P. Morgan Asset Management (Hong Kong) Ltd. 31-May % 9.07M -0.00M 7 Goldman Sachs Asset Management International 31-Mar % 8.77M -0.54M 8 Franklin Advisers, Inc. 30-Apr % 8.55M 0 9 Franklin Templeton Investment Management Ltd. 31-Mar % 8.55M +8.55M 10 The Vanguard Group, Inc. 31-May % 8.12M +0.05M Source: Reuters, ICICIdirect.com Research Recent Activity Investor name Investor name Buys Value Shares Sells Value Shares Global Investments Limited M M Icon Capital Limited M -5.17M Franklin Templeton Investment Management Ltd M +8.55M Hinduja Group M -1.54M Macquarie Investment Management Ltd M +6.19M Prans Asset Management, Ltd M -1.25M Kotak Mahindra (UK) Ltd M +1.67M ICICI Prudential Life Insurance Company Ltd M -0.80M HDFC Asset Management Co., Ltd M +1.49M Goldman Sachs Asset Management International -7.84M -0.54M Source: Reuters, ICICIdirect.com Research ICICI Securities Ltd Retail Equity Research Page 8

9 Financial summary Profit and loss statement Crore (Year-end March) FY15 FY16 FY17E FY18E Interest Earned 9, , , ,827.1 Interest Expended Net Interest Income 3, , , ,894.9 Growth (%) Non Interest Income Fees and advisory Treasury Income Other income Net Income Employee cost Other operating Exp Operating Income Provisions PBT Taxes Net Profit 1, , , ,638.2 Growth (%) EPS ( ) Key ratios (Year-end March) FY15 FY16 FY17E FY18E Valuation No. of shares (crore) EPS ( ) DPS ( ) BV ( ) ABV ( ) P/E P/BV P/ABV Yields & Margins (%) Net Interest Margins Yield on assets Avg. cost on funds Yield on average advances Avg. Cost of Deposits Quality and Efficiency (%) Cost to income ratio Credit/Deposit ratio GNPA NNPA ROE ROA Balance sheet Crore (Year-end March) FY15 FY16 FY17E FY18E Sources of Funds Capital Reserves and Surplus Networth Deposits Borrowings Other Liabilities & Provisions Total 109, , , ,678.6 Application of Funds Fixed Assets Investments Advances Other Assets Cash with RBI & call money Total 109, , , ,678.6 Growth ratios (% growth) (Year-end March) FY15 FY16 FY17E FY18E Total assets Advances Deposit Total Income Net interest income Operating expenses Operating profit Net profit Net worth EPS ICICI Securities Ltd Retail Equity Research Page 9

10 ICICIdirect.com coverage universe (Banking) CMP M Cap EPS ( ) P/E (x) P/ABV (x) RoA (%) RoE (%) Sector / Company ( ) TP( ) Rating ( Cr) FY16 FY17E FY18E FY16 FY17E FY18E FY16 FY17E FY18E FY16 FY17E FY18E FY16 FY17E FY18E Bank of Baroda (BANBAR) Hold 37, Punjab National Bank (PUNBAN) Hold 24, State Bank of India (STABAN) Hold 167, Indian Bank (INDIBA) Hold 6, Axis Bank (AXIBAN) Hold 129, City Union Bank (CITUNI) Buy 7, DCB Bank (DCB) Hold 2, Federal Bank (FEDBAN) Hold 10, HDFC Bank (HDFBAN) 1,200 1,225 Buy 299, IndusInd Bank (INDBA) 1,124 1,250 Buy 66, Jammu & Kashmir Bk(JAMKAS) Hold 3, Kotak Mahindra Bank (KOTMAH) Hold 139, Yes Bank (YESBAN) 1, Hold 48, ICICI Securities Ltd Retail Equity Research Page 10

11 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 ICICI Securities Ltd Retail Equity Research Page 11

12 ANALYST CERTIFICATION We /I, Kajal Gandhi, CA, Vasant Lohiya, CA and Vishal Narnolia, MBA Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. Terms & conditions and other disclosures: ICICI Securities Limited is a Sebi registered Research Analyst having registration no. INH ICICI Securities Limited (ICICI Securities) is full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. 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