15 February 2018 India Real Estate Company Update Phoenix Mills BUY Stable operations; Chennai Mall back on track Phoenix Mills (PHNX) s 3QFY18 profit increased 46% YoY as reduction in interest cost and improving operations across assets improved profitability. Consumption and trading density of its retail assets grew 8% and 6% YoY, respectively. While Kurla and Bangalore malls recorded consumption increases, Chennai and High Street Phoenix (HSP) saw muted consumption growth during the quarter. In HSP, 11% of leasable area became operations in Dec 17; Chennai consumption has stabilised on completion of category changes introduced in the mall. Rentals continued to improve across malls (10% YoY) and hotel revenues improved on higher room rents (+10% YoY) with rising occupancy. On growth, management is exploring various options (completed or land stage) for its retail platform, including the acquisition of a mall in Indore, which is awaiting legal clearance. Management also plans to execute growth projects outside the retail platform by utilising FSI available in Pune, HSP and Chennai. We expect market-leading malls to have a significant advantage over next 3-4 years as low competition will lead to improvement in consumption and rentals. We maintain BUY with a revised target price of INR650 (Mar 19). Consolidated profit +46% YoY: PHNX reported 3QFY18 profit of INR 652mn, +46% YoY, as decline in interest cost over last one year improved profitability. EBITDA was reported at INR 2.1bn (down 3% YoY) primarily on deconsolidation of Classic Mall. Adjusted for Classic mall, EBITDA was up 15% YoY. Standalone (HSP) margins declined to 62% (67% in 3QFY17) on lower leased area. Operations steady overall; HSP and Chennai are exceptions: Rents across malls saw a 10% increase YoY with Pune/Bangalore/Kurla/Chennai rentals growing 10%/13%/22%/15%, respectively. In addition Improving operating dynamics in Kurla give us visibility on a turnaround for the mall. Chennai recorded a 6% YoY improvement in consumption after five quarters of YoY decline in consumption. Management indicated the completion of category changes in the mall and expects consumption/rentals to improve post renewal of leasing space (46% of leasable area up for renewal in FY18). In HSP 11% of leasable area became operational in Dec 17 on completion of North Zone. HSP s rentals and consumption is expected to improve goingforward. Overall, the rentalsto-consumption ratio was 13.2% in 3QFY18 (12.9% in 3QFY17). St. Regis occupancy decline marginally to 76% (79% in 3QFY17) with higher ARR (+15% YoY). Courtyard (Agra) occupancy improved from 71% to 72%, but ARR declined marginally 3%. PHNX collected INR 239mn from its residential project. Abhishek Anand CFA abhishek.anand@jmfl.com Tel: (91 22) 66303067 Recommendation and Price Target Current Reco. BUY Previous Reco. BUY Current Price Target (12M) 650 Upside/(Downside) 7.5% Previous Price Target 560 Change 16.1% Key Data PHNX IN Current Market Price Market cap (bn) INR605 INR92.6/US$1.4 Free Float 47% Shares in issue (mn) 153.0 Diluted share (mn) 152.9 3-mon avg daily val (mn) INR86.5/US$1.4 52-week range 700/339 Sensex/Nifty 34,156/10,501 INR/US$ 64.1 Price Performance % 1M 6M 12M Absolute 1.6 18.8 73.3 Relative* 2.9 8.5 43.9 * To the BSE Sensex Maintain BUY; 83% NAV emanates from operational projects: Our NAV-based TP of INR 650 (Mar 19) is derived valuing retail assets on a lease basis assuming perpetual ownership (cap rate 8%, HSP/MC 39/43% of NAV); development projects on a DCF basis (12% of NAV); and strategic investments at 1x and hotels at 20x EBITDA (5% of NAV). With most capex/buybacks complete, cash flow deployment will be a key monitorable going forward. Key risk will be increase in interest rates leading to rise in cap rates and interest costs. Financial Summary (INR mn) Net Sales 17,795 18,246 17,477 22,888 25,749 Sales Growth (%) 7.6 2.5-4.2 31.0 12.5 EBITDA 7,869 8,469 8,158 10,853 10,982 EBITDA Margin (%) 44.2 46.4 46.7 47.4 42.6 Adjusted Net Profit 1,677 1,679 2,215 4,126 4,528 Diluted EPS (INR) 11.0 11.0 14.5 27.0 29.6 Diluted EPS Growth (%) 23.0 0.2 31.9 86.3 9.7 ROIC (%) 5.6 8.1 8.0 11.9 12.5 ROE (%) 9.1 8.0 9.8 16.5 16.1 P/E (x) 55.2 55.1 41.8 22.4 20.4 P/B (x) 4.6 4.2 3.9 21.4 21.8 EV/EBITDA (x) 16.6 15.0 15.9 11.5 10.9 Dividend Yield (%) 0.0 0.0 0.0 0.0 0.0 Source: Company data, JM Financial. Note: Valuations as of 14/Feb/2018 JM Financial Research is also available on: Bloomberg - JMFR <GO>, Thomson Publisher & Reuters S&P Capital IQ and FactSet Please see Appendix I at the end of this report for Important Disclosures and Disclaimers and Research Analyst Certification. JM Financial Institutional Securities Limited
Exhibit 1. EBITDA contribution (INR mn) - Deconsolidation of Chennai mall/py Kessaku recognition impacted EBITDA 2,250 19 22 30 308 Chennai deconsolidated 112 2,173 49 141 3QFY17 EBITDA Pune Kurla Bangalore Chennai HSP & Others Development Palladium 3QFY18 EBITDA Source: Company, Company, JM Financial Palladium Hotel s (St. Regis) occupancy improved from 69% in 2QFY17 to 72% in the last quarter. ARR for the quarter was up 10% YoY at INR 10,779. The company spent INR 1.1bn for a TDR purchase in One Bangalore West and Pune malls. Chennai Palladium Mall commenced operations in 3QFY18, with 70% leased area and H&M as its anchor tenant. Company has unutilised FSI in Pune (for office space -0.7msf), HSP (1-1.5msf) and Chennai (0.4msf). Exhibit 2. Valuation (INR mn) Total Value Stake Phoenix's Share INR /share % of Total High Street Phoenix 38,913 100% 38,913 254 39% PMC Kurla 6,116 100% 6,116 40 6% PMC Pune 12,377 100% 12,377 81 12% PMC Bangalore 23,080 70% 16,156 106 16% PMC Chennai 13,867 50% 6,935 45 7% PMC Chennai 2,780 29% 814 5 1% Retail 97,133 81,311 531 82% Hotel 4,866 32 5% Commercial 5,079 33 5% Residential 6,244 41 6% Other Investments 1,565 10 2% Total 99,065 650 100% JM Financial Institutional Securities Limited Page 2
Exhibit 3. Rental Trends (INR mn) Rentals 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 %YoY HSP 632 634 675 661 674 702 752 711 730 713 776 3% Pune Mkt City 251 255 263 266 263 284 324 330 338 332 357 10% Kurla Mkt City 253 247 231 223 230 230 232 235 266 271 284 22% Bangalore Mkt City 227 241 243 247 252 263 292 283 313 311 329 13% Chennai Mkt City 291 301 294 310 315 326 306 339 343 343 351 15% Total 1,654 1,678 1,706 1,707 1,734 1,805 1,906 1,898 1,990 1,970 2,097 10% Exhibit 4. Consumption Trends (INR mn) Consumption - INR mn 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 %YoY HSP 3,604 3,759 4,306 3,752 3,781 4,024 4,524 3,934 4,208 3,617 4,574 1% Pune Mkt City 2,116 2,168 2,333 2,042 2,208 2,188 2,812 2,422 2,747 2,495 2,969 6% Kurla Mkt City 1,390 1,544 1,581 1,442 1,565 1,678 1,929 1,784 2,052 1,801 2,320 20% Bangalore Mkt City 2,015 2,271 2,433 2,162 2,332 2,398 2,918 2,554 3,172 3,030 3,299 13% Chennai Mkt City 2,634 2,915 2,825 2,855 2,845 2,856 2,597 2,401 2,812 2,706 2,747 6% Total 11,759 12,657 13,478 12,253 12,731 13,144 14,780 13,095 14,991 13,649 15,909 8% Exhibit 5. Retailers gross spend on rentals; rent as a % of consumption rentals as a % of consumption 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 HSP 17.5% 16.9% 15.7% 17.6% 17.8% 17.4% 16.6% 18.1% 17.3% 19.7% 17.0% Pune Mkt City 11.9% 11.8% 11.3% 13.0% 11.9% 13.0% 11.5% 13.6% 12.3% 13.3% 12.0% Kurla Mkt City 18.2% 16.0% 14.6% 15.5% 14.7% 13.7% 12.0% 13.2% 13.0% 15.0% 12.2% Bangalore Mkt City 11.3% 10.6% 10.0% 11.4% 10.8% 11.0% 10.0% 11.1% 9.9% 10.3% 10.0% Chennai Mkt City 11.0% 10.3% 10.4% 10.9% 11.1% 11.4% 11.8% 14.1% 12.2% 12.7% 12.8% Total 14.1% 13.3% 12.7% 13.9% 13.6% 13.7% 12.9% 14.5% 13.3% 14.4% 13.2% Exhibit 6. Trading density (INR/sf/month) Trading Density 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 High Street Phoenix 2,550 2,712 3,033 2,656 2,819 2,842 3,108 2,809 3,114 2,765 3,381 Pune Market City 1,084 1,076 1,139 1,007 1,190 1,225 1,307 1,110 1,264 1,142 1,340 Kurla Market City 734 825 855 774 884 913 1,032 938 1,065 927 1,183 Bangalore Market City 1,216 1,354 1,403 1,229 1,350 1,375 1,599 1,454 1,810 1,686 1,767 Chennai Market City 1,462 1,625 1,592 1,610 1,603 1,617 1,636 1,357 1,551 1,498 1,540 Exhibit 7. EBITDA trend (INR mn) EBITDA 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 %YoY HSP 597 585 604 611 627 640 668 603 640 619 619-7% Pune Mkt City 237 262 241 223 247 258 293 275 308 306 312 6% Kurla Mkt City 137 133 203 110 167 152 253 223 243 230 231-9% Bangalore Mkt City 227 236 228 242 249 280 273 285 319 307 303 11% Chennai Mkt City 331 321 297 295 330 332 308 371 379 383 382 24% Total 1,529 1,537 1,573 1,481 1,620 1,662 1,795 1,757 1,889 1,845 1,847 3% JM Financial Institutional Securities Limited Page 3
Exhibit 8. St Regis performance (INR mn) Palladium 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 %YoY Room Revenue 159 159 244 283 214 239 307 309 272 274 323 5% F&B & Banqueting 235 244 327 283 255 274 320 329 290 279 357 12% Other Income 50 47 71 80 55 63 65 91 60 66 87 34% Total Income 444 450 642 646 524 576 692 729 622 620 767 11% EBITDA 143 117 227 247 168 179 250 310 223 207 287 15% EBITDA Margin (% of income) 32% 26% 35% 38% 32% 31% 36% 43% 36% 33% 37% Keys Operational 335 335 386 386 386 395 395 395 395 395 395 Occupancy % 63% 70% 78% 75% 61% 69% 79% 80% 72% 72% 76% ARR 8,340 8,497 9,978 10,705 9,957 9,671 10,666 11,798 10,779 10,622 12,217 15% RevPAR 5,254 5,948 7,783 8,029 6,074 6,673 8,426 9,438 7,761 7,648 9,285 10% Exhibit 9. Renewal Schedule for Malls Renewal schedule for Phoenix malls FY18 FY19 FY20 HSP 13% 18% 23% Bangalore 8% 3% 7% Chennai 46% 5% 2% Mumbai 9% 10% 7% Pune 4% 15% 13% Exhibit 10. Gross Debt trends (INR bn) 38 39 38 38 39 39 37 40 41 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 JM Financial Institutional Securities Limited Page 4
Exhibit 11. Consol P&L (INR mn) 3QFY17C 2QFY18C 3QFY18C %YoY %QoQ Income 4,367 3,706 4,166-5% 12% Expenditure 2,230 1,922 2,099-6% 9% COGS 839 701 700-16% 0% Other expenses 991 861 995 0% 16% Staff cost 400 360 403 1% 12% EBITDA 2,137 1,785 2,067-3% 16% Depreciation 489 510 485-1% -5% Other Income 112 149 106-6% -29% EBIT 1,760 1,424 1,689-4% 19% Interest 1,077 857 883-18% 3% PBT 684 567 806 18% 42% Taxes 54 267 218 303% -18% Profit before minority interest 630 300 588-7% 96% Minority Interest 191 5 45-76% 744% Share of associates loss -7-123 -109 1546% -11% PAT 445 418 652 46% 56% Adj Profit 445 418 652 46% 56% Basic EPS 2.91 2.73 4.26 46% 56% Exhibit 12. Consol P&L Margins as % of net revenues 3QFY17C 2QFY18C 3QFY18C %YoY %QoQ COGS 19% 19% 17% -240bps -210bps Other expenses 23% 23% 24% 119bps 65bps Staff Cost 9% 10% 10% 52bps -2bps Total expenses 51% 52% 50% -68bps -147bps Gross profit 81% 81% 83% 240bps 210bps EBITDA 49% 48% 50% 68bps 147bps Net profit 10% 11% 16% 546bps 440bps Tax rate 8% 47% 27% 1,912bps -2,006bps JM Financial Institutional Securities Limited Page 5
Exhibit 13. Standalone P&L (INR mn) 3QFY17S 2QFY18S 3QFY18S %YoY %QoQ Income 1,000 945 1,001 0% 6% Expenditure 332 326 382 15% 17% COGS 104 106 102-2% -4% Other expenses 183 182 227 24% 25% Staff cost 45 37 53 17% 41% EBITDA 668 619 619-7% 0% Depreciation 76 100 104 38% 4% Other Income -15 383 31-311% -92% EBIT 577 901 547-5% -39% Interest 223 196 175-21% -11% PBT 354 705 371 5% -47% Taxes -52 75 80-252% 6% - Current tax -42 75 80-289% 6% - Deferred tax -10 0 0-100% Profit 407 631 292-28% -54% PAT post extraordinary 57 631 292 414% -54% Adj Profit 407 631 292-28% -54% Basic EPS 0.4 4.1 1.9 412% -54% Exhibit 14. Standalone P&L Margins as % of net revenues 3QFY17S 2QFY18S 3QFY18S %YoY %QoQ COGS 10% 11% 10% -24bps -110bps Other expenses 18% 19% 23% 442bps 342bps Staff Cost 4% 4% 5% 78bps 132bps Total expenses 33% 34% 38% 496bps 364bps Gross profit 90% 89% 90% 24bps 110bps EBITDA 67% 66% 62% -496bps -364bps Net profit 9% 17% 7% -231bps -1,002bps Tax rate -15% 11% 21% 3,618bps 1,083bps JM Financial Institutional Securities Limited Page 6
Financial Tables (Consolidated) Income Statement (INR mn) Net Sales 17,795 18,246 17,477 22,888 25,749 Sales Growth 7.6% 2.5% -4.2% 31.0% 12.5% Other Operating Income 0 0 0 0 0 Total Revenue 17,795 18,246 17,477 22,888 25,749 Cost of Goods Sold/Op. Exp 4,725 4,404 4,218 5,524 6,215 Personnel Cost 1,244 1,403 1,343 1,759 1,979 Other Expenses 3,957 3,970 3,757 4,752 6,573 EBITDA 7,869 8,469 8,158 10,853 10,982 EBITDA Margin 44.2% 46.4% 46.7% 47.4% 42.6% EBITDA Growth 3.3% 7.6% -3.7% 33.0% 1.2% Depn. & Amort. 1,773 1,953 1,972 1,984 1,990 EBIT 6,096 6,516 6,186 8,868 8,992 Other Income 302 472 763 1,085 1,343 Finance Cost 4,425 4,230 3,899 3,725 3,202 PBT before Excep. & Forex 1,974 2,758 3,050 6,228 7,133 Excep. & Forex Inc./Loss(-) -387 0 0 0 0 PBT 1,587 2,758 3,050 6,228 7,133 Taxes 767 858 949 1,937 2,218 Extraordinary Inc./Loss(-) 0 0 0 0 0 Assoc. Profit/Min. Int.(-) -470 221-113 165 387 Reported Net Profit 1,289 1,679 2,215 4,126 4,528 Adjusted Net Profit 1,677 1,679 2,215 4,126 4,528 Net Margin 9.4% 9.2% 12.7% 18.0% 17.6% Diluted Share Cap. (mn) 152.9 152.9 152.9 152.9 152.9 Diluted EPS (INR) 11.0 11.0 14.5 27.0 29.6 Diluted EPS Growth 23.0% 0.2% 31.9% 86.3% 9.7% Total Dividend + Tax 0 0 0 0 0 Dividend Per Share (INR) 0.0 0.0 0.0 0.0 0.0 Cash Flow Statement (INR mn) Profit before Tax 1,974 2,758 3,050 6,228 7,133 Depn. & Amort. 1,773 1,953 1,972 1,984 1,990 Net Interest Exp. / Inc. (-) 4,727 4,702 4,663 4,810 4,545 Inc (-) / Dec in WCap. -1,914 5,832-799 646-298 Others -342-943 -1,527-2,170-2,687 Taxes Paid -1,678-858 -949-1,937-2,218 Operating Cash Flow 4,541 13,444 6,411 9,562 8,466 Capex -3,623-1,803-500 -150-150 Free Cash Flow 917 11,640 5,911 9,412 8,316 Inc (-) / Dec in Investments 0 0 0 0 0 Others -3,679-2,013-1,787 1,085 1,343 Investing Cash Flow -7,302-3,817-2,287 935 1,193 Inc / Dec (-) in Capital 2,761 0 0 0 0 Dividend + Tax thereon -722-442 -553-1,130-1,294 Inc / Dec (-) in Loans 5,974-2,646 0-3,000-6,000 Others -4,513-7,357-1,659-3,725-3,202 Financing Cash Flow 3,500-10,446-2,213-7,855-10,496 Inc / Dec (-) in Cash 739-818 1,912 2,642-837 Opening Cash Balance 920 1,631 812 2,724 5,365 Closing Cash Balance 1,659 812 2,724 5,365 4,528 Balance Sheet (INR mn) Shareholders Fund 20,194 21,871 23,533 26,529 29,762 Share Capital 306 306 306 306 306 Reserves & Surplus 19,888 21,565 23,226 26,223 29,456 Preference Share Capital 0 0 0 0 0 Minority Interest 4,786 2,797 7,609 8,005 8,631 Total Loans 36,233 33,542 33,542 30,542 24,542 Def. Tax Liab. / Assets (-) -2,513-2,416-2,416-2,416-2,416 Total - Equity & Liab. 58,700 55,795 62,268 62,660 60,520 Net Fixed Assets 45,465 45,316 43,844 42,010 40,169 Gross Fixed Assets 50,339 50,814 51,314 51,464 51,614 Intangible Assets 73 73 73 73 73 Less: Depn. & Amort. 6,896 8,849 10,821 12,805 14,795 Capital WIP 1,949 3,277 3,277 3,277 3,277 Investments 1,611 4,096 9,331 9,562 9,801 Current Assets 24,649 18,569 20,361 24,006 25,082 Inventories 13,240 9,455 9,576 9,406 10,582 Sundry Debtors 2,786 1,470 1,436 1,568 1,764 Cash & Bank Balances 1,630 812 2,724 5,365 4,528 Loans & Advances 881 429 411 564 635 Other Current Assets 6,112 6,403 6,213 7,103 7,573 Current Liab. & Prov. 13,026 12,186 11,268 12,918 14,533 Current Liabilities 1,267 1,116 1,069 1,254 1,411 Provisions & Others 11,759 11,071 10,199 11,663 13,122 Net Current Assets 11,623 6,383 9,093 11,089 10,550 Total Assets 58,700 55,795 62,268 62,660 60,520 Dupont Analysis Net Margin 9.4% 9.2% 12.7% 18.0% 17.6% Asset Turnover (x) 0.3 0.3 0.3 0.4 0.4 Leverage Factor (x) 3.1 2.7 2.6 2.5 2.2 RoE 9.1% 8.0% 9.8% 16.5% 16.1% Key Ratios BV/Share (INR) 132.0 143.0 153.9 28.3 27.7 ROIC 5.6% 8.1% 8.0% 11.9% 12.5% ROE 9.1% 8.0% 9.8% 16.5% 16.1% Net Debt/Equity (x) 1.7 1.4 1.3 0.9 0.6 P/E (x) 55.2 55.1 41.8 22.4 20.4 P/B (x) 4.6 4.2 3.9 21.4 21.8 EV/EBITDA (x) 16.6 15.0 15.9 11.5 10.9 EV/Sales (x) 7.3 7.0 7.4 5.4 4.7 Debtor days 57 29 30 25 25 Inventory days 272 189 200 150 150 Creditor days 47 42 42 38 35 JM Financial Institutional Securities Limited Page 7
History of Earnings Estimate and Target Price Date FY18E EPS (INR) % Chg. FY19E EPS (INR) % Chg. Target Price 10-Apr-15 430 % Chg. 29-May-15 430 0.0 14-Aug-15 30.3 430 0.0 20-Aug-15 29.1-4.0 430 0.0 6-Nov-15 29.1 0.0 430 0.0 11-Feb-16 29.5 1.4 430 0.0 17-May-16 24.3-17.6 425-1.2 12-Aug-16 24.3 0.0 425 0.0 26-Aug-16 24.5 0.8 435 2.4 19-Jan-17 18.4-24.9 29.5 440 1.1 11-May-17 17.6-4.3 29.7 0.7 460 4.5 11-Aug-17 17.3-1.7 29.1-2.0 540 17.4 14-Nov-17 16.7-3.5 27.9-4.1 560 3.7 Recommendation History Phoenix Mills 700 600 B B 500 B B B B B B BB B B 400 300 200 100 0 Jan-15 Jun-15 Nov-15 Apr-16 Sep-16 Feb-17 Jul-17 Dec-17 Target Price Phoenix Mills JM Financial Institutional Securities Limited Page 8
APPENDIX I JM Financial Institutional Securities Limited Corporate Identity Number: U65192MH1995PLC092522 Member of BSE Ltd. and National Stock Exchange of India Ltd. and Metropolitan Stock Exchange of India Ltd. SEBI Registration Nos.: BSE - INZ010012532, NSE - INZ230012536 and MSEI - INZ260012539, Research Analyst INH000000610 Registered Office: 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025, India. Board: +9122 6630 3030 Fax: +91 22 6630 3488 Email: jmfinancial.research@jmfl.com www.jmfl.com Compliance Officer: Mr. Sunny Shah Tel: +91 22 6630 3383 Email: sunny.shah@jmfl.com Definition of ratings Rating Meaning Buy Total expected returns of more than 15%. Total expected return includes dividend yields. Hold Price expected to move in the range of 10% downside to 15% upside from the current market price. Sell Price expected to move downwards by more than 10% Research Analyst(s) Certification The Research Analyst(s), with respect to each issuer and its securities covered by them in this research report, certify that: All of the views expressed in this research report accurately reflect his or her or their personal views about all of the issuers and their securities; and No part of his or her or their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this research report. Important Disclosures This research report has been prepared by JM Financial Institutional Securities Limited (JM Financial Institutional Securities) to provide information about the company(ies) and sector(s), if any, covered in the report and may be distributed by it and/or its associates solely for the purpose of information of the select recipient of this report. This report and/or any part thereof, may not be duplicated in any form and/or reproduced or redistributed without the prior written consent of JM Financial Institutional Securities. This report has been prepared independent of the companies covered herein. JM Financial Institutional Securities is registered with the Securities and Exchange Board of India (SEBI) as a Research Analyst, Merchant Banker and a Stock Broker having trading memberships of the BSE Ltd. (BSE), National Stock Exchange of India Ltd. (NSE) and Metropolitan Stock Exchange of India Ltd. (MSEI). No material disciplinary action has been taken by SEBI against JM Financial Institutional Securities in the past two financial years which may impact the investment decision making of the investor. JM Financial Institutional Securities provides a wide range of investment banking services to a diversified client base of corporates in the domestic and international markets. It also renders stock broking services primarily to institutional investors and provides the research services to its institutional clients/investors. JM Financial Institutional Securities and its associates are part of a multi-service, integrated investment banking, investment management, brokerage and financing group. JM Financial Institutional Securities and/or its associates might have provided or may provide services in respect of managing offerings of securities, corporate finance, investment banking, mergers & acquisitions, broking, financing or any other advisory services to the company(ies) covered herein. JM Financial Institutional Securities and/or its associates might have received during the past twelve months or may receive compensation from the company(ies) mentioned in this report for rendering any of the above services. JM Financial Institutional Securities and/or its associates, their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell the securities of the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) covered under this report or (c) act as an advisor or lender/borrower to, or may have any financial interest in, such company(ies) or (d) considering the nature of business/activities that JM Financial Institutional Securities is engaged in, it may have potential conflict of interest at the time of publication of this report on the subject company(ies). Neither JM Financial Institutional Securities nor its associates or the Research Analyst(s) named in this report or his/her relatives individually own one per cent or more securities of the company(ies) covered under this report, at the relevant date as specified in the SEBI (Research Analysts) Regulations, 2014. The Research Analyst(s) principally responsible for the preparation of this research report and members of their household are prohibited from buying or selling debt or equity securities, including but not limited to any option, right, warrant, future, long or short position issued by company(ies) covered under this report. The Research Analyst(s) principally responsible for the preparation of this research report or their relatives (as defined under SEBI (Research Analysts) Regulations, 2014); (a) do not have any financial interest in the company(ies) covered under this report or (b) did not receive any compensation from the company(ies) covered under this report, or from any third party, in connection with this report or (c) do not have any other material conflict of interest at the time of publication of this report. Research Analyst(s) are not serving as an officer, director or employee of the company(ies) covered under this report. While reasonable care has been taken in the preparation of this report, it does not purport to be a complete description of the securities, markets or developments referred to herein, and JM Financial Institutional Securities does not warrant its accuracy or completeness. JM Financial Institutional Securities may 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. This report is provided for information only and is not an investment advice and must not alone be taken as the basis for an investment decision. The investment discussed or views expressed or recommendations/opinions given herein may not be suitable for all investors. The user assumes the entire risk of any use made of this information. The information contained herein may be changed without notice and JM Financial Institutional Securities reserves the right to make modifications and alterations to this statement as they may deem fit from time to time. JM Financial Institutional Securities Limited Page 9
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