Huhtamaki PPL Ltd. (HPPL)

Similar documents
CD Equisearch Pvt Ltd

Gillette India Ltd. Higher demand for the male grooming product to boost company s outlook. Investment Rationale. Net Sales (`bn)

Ambuja Cements NEUTRAL. Performance Highlights CMP. `184 Target Price - 2QCY2012 Result Update Cement. Quarterly results (Standalone)

Ambuja Cements NEUTRAL. Performance Highlights CMP. `155 Target Price - 1QCY2011 Result Update Cement. Investment Period - Key financials (Standalone)

Goodyear India ACCUMULATE. Performance Highlights. CMP Target Price `326 `374. 1QCY2012 Result Update Tyres. Key financials

ACC NEUTRAL. Performance Highlights. CMP `1,261 Target Price - 4QCY2012 Result Update Cement. Quarterly results (Standalone) Investment Period -

APOLLO TYRES LTD. October 19 th, CMP (Rs.) 194. Key Developments

Mahindra & Mahindra Ltd.

ITC Ltd. BUY CMP (Rs.) 304 Target (Rs.) 336 Potential Upside(%) 11% Valuation: Investment Rationale. For private circulation only

CCL Products BUY. Performance Update. CMP Target Price `278 `360. 3QFY2018 Result Update Coffee. Historical share price chart.

Advisory Desk. TVS Srichakra Ltd. BUY CMP. `355 Target Price `468. Investment rationale. Outlook and valuation. Investment Period 12 Months

Graphite India BUY. Performance Highlights CMP. `93 Target Price `124. 4QFY2012 Result Update Capital Goods. Investment Period 12 Months

CD Equisearch Pvt Ltd

BALKRISHNA INDUSTRIES LTD

KEI Industries BUY. Performance Update. Target Price. 3QFY2018 Result Update Cable. Historical share price chart. Key Financials

GAIL India NEUTRAL. Performance Highlights CMP. `363 Target Price - 2QFY2013 Result Update Oil & Gas. Investment Period -

GMM Pfaudler Limited BUY. Performance Update CMP. `945 Target Price ` QFY2019 Result Update Industrial Machinery. Investment Period 12 Months

KEI Industries BUY. Performance Update. CMP Target Price `433 `508. 4QFY2018 Result Update Cable. Historical share price chart.

Graphite India BUY. Performance Highlights. CMP Target Price `88 `109. 1QFY2012 Result Update Capital Goods

Matrimony.com Ltd BUY. Performance Update. Target Price `1,016. 4QFY2018 Result Update Cable. Historical share price chart.

Blue Star Ltd BUY. Performance Update. CMP Target Price `754 `867. 4QFY2018 Result Update Cons. Durable. 3-year price chart.

Goodyear India BUY. Company Update. CMP Target Price `515 `631. Company Update Tyres. 3-year Daily Price Chart. Key Financials

MRF BUY. Performance Highlights. CMP `9,407 Target Price `11,343. Company Update Automobile. Key financials

SpiceJet BUY. Performance Highlights CMP. `32 Target Price `43. 1QFY2013 Result Update Airlines. Investment Period 12 Months.

Parag Milk Foods BUY. Performance Update CMP. `256 Target Price `330. 2QFY2019 Result Update Dairy Products. Investment Period 12 Months

Garware Wall Ropes ACCUMULATE. Performance Highlights CMP. `550 Target Price `618. 2QFY2017 Result Update Textile. Investment Period 12 months

Sanofi India NEUTRAL. Performance Highlights. CMP `4,007 Target Price - 3QCY2017 Result Update Pharmaceutical. Investment Period 12 months

Sanofi India NEUTRAL. Performance Highlights. CMP `4,007 Target Price - 2QCY2017 Result Update Pharmaceutical. 3-year price chart.

Quick take. Aditya Birla Nuvo BUY. Deep Value. Valuation Methodology. Exhibit 1: ABNL s Business Structure

ITC ACCUMULATE. Performance Highlights CMP. `257 Target Price `284. 3QFY2017 Result Update FMCG. Investment Period 12 Months

Nestle India NEUTRAL. Performance Highlights. CMP `4,387 Target Price - 2QCY2012 Result Update FMCG. Quarterly results. Investment Period -

Century Plyboards Ltd

Nestlé India. Q4CY16 Result Update. Healthy Sales growth; higher provisions & CSR impacts bottom-line. Sector: FMCG CMP: ` 6,169. Recommendation: BUY

Reliance Communication

Cairn India ACCUMULATE. Performance Highlights. CMP Target Price `338 `382. 2QFY2013 Result Update Oil & Gas. Quarterly highlights (Consolidated)

Quick take. Ruchira Papers Ltd. BUY. Creating value through paper. Target Price. Investment Period 12 Months. 3 year daily price chart.

ACC BUY. Performance Highlights. CMP `1,397 Target Price `1,630. 3QCY2015 Result Update Cement

SpiceJet ACCUMULATE. Performance Highlights. 4QFY2010 Result Update I Aviation

Future Supply Chain Solutions Ltd

Parag Milk Foods BUY. Performance Update CMP. `324 Target Price `410. 1QFY2019 Result Update Dairy Products. Investment Period 12 Months

Amber Enterprises India Ltd

Ambuja Cements ACCUMULATE. Performance Highlights. CMP Target Price `207 `233. 3QCY2015 Result Update Cement. Quarterly results (Standalone)

Colgate-Palmolive ACCUMULATE. Performance Highlights. 4QFY2010 Result Update I FMCG

Huhtamaki PPL. Institutional Equities. Management Meet Update NOT RATED. CMP: Rs186 Sector: Packaging. 16 September 2014

Alembic BUY. Performance Highlights. Target Price. 1QFY2011 Result Update Pharmaceutical. Investment Period 12 months

Rallis India NEUTRAL. Performance Highlights CMP. `242 Target Price - 4QFY2017 Result Update Agrichemical. Investment Period - 3-year price chart

Mahindra & Mahindra Ltd.

Rallis India NEUTRAL. Performance Highlights CMP. `237 Target Price - 1QFY2018 Result Update Agrichemical. Investment Period - 3-year price chart

Rallis India NEUTRAL. Performance Highlights CMP. `215 Target Price - 3QFY2017 Result Update Agrichemical. Investment Period - 3-year price chart

Prakash Industries BUY. Performance Highlights. CMP Target Price `81 `124. 3QFY2011 Result Update Steel

Mahindra & Mahindra Ltd.

Asian Granito BUY. Performance Highlights CMP. `270 Target Price `351. Outlook and valuation. 3QFY2017 Result Update Ceramics

Hindustan Unilever Ltd.

NRB BEARINGS LTD CMP. 16 July 2018 INR 164. Target Price. Initiating Coverage (BUY) INR 200

Simplex Infrastructures

Maruti Suzuki India BUY. Performance Update. CMP `9,315 Target Price `10,820. 1QFY2019 Result Update Automobile. Historical share price chart

Sanofi India NEUTRAL. Performance Highlights. CMP `4,301 Target Price - 4QCY2016 Result Update Pharmaceutical. Investment Period - 3-year price chart

Nestlé India. Q2CY17 Result Update. Positives priced in; Downgrade to Hold. Sector: FMCG CMP: ` 6,786. Recommendation: HOLD

Mahindra & Mahindra BUY. CMP Target Price `860 `990. Company Update Automobile

Varroc Engineering Ltd.

TV Today Network BUY. Performance Update CMP. `323 Target Price `498. 3QFY2019 Result Update Media. Investment Period 12 Months

HFC NEUTRAL. Performance Highlights CMP. `678 Target Price - 1QFY2013 Result Update HFC. Investment Period - Key financials

Procter & Gamble Hygiene & Health Care

ACC Ltd. BUY CMP (Rs.) 1,471 Target (Rs.) 1,655 Potential Upside 13% For private circulation only. Volume No.. II Issue No. 172.

Navneet Education Ltd.

Bharat Dynamics Ltd SUBSCRIBE. Issue Open: Mar 13, 2018 Issue Close: Mar 15, IPO Note Defence. Key Financials

Hinduja Global Solutions Ltd.

SUN TV Network NEUTRAL. Performance Highlights CMP. `297 Target Price - 1QFY2013 Result Update Media. Investment Period -

Hindustan Media Ventures

Tech Mahindra ACCUMULATE. Performance Highlights. CMP Target Price `659 `693. 3QFY2012 Result Update IT. Key financials (Consolidated, Indian GAAP)

Avenue Supermarts Limited

Greenply Industries BUY. The plywood maker for growing India. Target Price. Initiating Coverage Plywood. 3-year price chart.

Sanofi India ACCUMULATE. Performance Highlights. CMP `4,410 Target Price `4,738. 1QCY2016 Result Update Pharmaceutical. 3-year price chart

Apollo Micro Systems Ltd

West Coast Paper Mills Ltd.

Company Overview. Financial Performance

Dewan Housing Finance

ULTRAMARINE & PIGMENTS LTD

EMMBI INDUSTRIES LTD. 27 April 2017 CMP INR 161. Initiating Coverage (BUY) Target Price INR 207

HT Media ACCUMULATE. Performance Highlights CMP. `102 Target Price `113. 3QFY2013 Result Update Media. Investment Period 12 months

CCL Products BUY. Brewing Steadily. CMP Target Price `300 `360. Initiating Coverage Coffee. January 4, year price chart

JK Lakshmi Cement BUY. Performance Highlights CMP. `63 Target Price `79. 4QFY2012 Result Update Cement. Investment Period 12 Months

NEUTRAL. Neogen Chemicals Ltd. Issue Open: April 24, 2019 Issue Close: April 26, IPO Note Specialty Chemicals

KNR CONSTRUCTIONS LTD

Tata Steel NEUTRAL. Performance Highlights CMP. `226 Target Price - 2QFY2016 Result Update Steel. Investment Period - 3-year price chart

Larsen & Toubro Ltd.

Aurobindo Pharma Ltd.

FY17 FY18 FY19E FY20E

Coal India ACCUMULATE. Performance Highlights CMP. `338 Target Price `380. Outlook and valuation. 2QFY2016 Result Update Mining

PROCTER & GAMBLE HYGIENE & HEALTH CARE LTD Result Update (PARENT BASIS): Q4 FY15

SHRIRAM TRANSPORT FINANCE COMPANY LTD

Company Overview. Financial Performance

Aster DM Healthcare Ltd

Indian Oil Corporation Ltd.

Apollo Hospitals Enterprise Ltd.

Maruti Suzuki India Ltd.

MRF BUY. Performance Highlights. CMP `40,703 Target Price `47,548. 1QSY2015 Result Update Tyre

Newgen Software Technologies Ltd

PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)

Punjab National Bank ACCUMULATE. Performance Highlights. CMP `1,115 Target Price `1,259. 3QFY2011 Result Update Banking.

Transcription:

(HPPL) Changing dynamics in the packaging industry to aid growth 3 July 2015 Initial Coverage Rating: Buy Equity research Containers & Packaging Coverage initiation Recommendation Buy Target price (INR) 278 CMP (INR) 242 Stop Loss(INR) 223 Duration Market data 6 months Market cap. (`cr) 1,759.3 Beta 0.8 52 week H/L (`) 259.9/131.6 All time High (`) 259.9 Decline from 52WH (%) 6.9 Rise from 52WL (%) 83.9 Share price performance Source: NSE Shareholding Pattern (%) Promoters 68.8 FII 1.5 DII 5.6 Others 24.2 * As of March 2015 Abhishek Das abhishek.das@muthootsecurities.com Investment Rationale Acquisition of PPIL to add HPPL s manufacturing capabilities: HPPL s takeover of Positive Packaging Industries Ltd. (PPIL) in January 2015 has increased the manufacturing capabilities of the company. HPPL s capacity before the acquisition stood at ~52,000 MT and is expected to be ~97,000 MT post the takeover. The augmented capacity would aid the company to improve its revenue base, which stood at ~`1,225 crore at the end of CY14. We expect the company s revenue to surpass `2,000 crore at the end of CY16E. Further, the acquisition would also aid HPPL in gaining further bargaining power, achieve better economies of scale, extend its customer network and would also help synergies in sourcing of inputs and upgradation in technology. Favourable economic conditions drive EBITDA growth in Q1CY15: Consistent inflation rate and better than expected monsoon rains triggered moderate increase in HPPL s revenues by 4.4% YoY in Q1CY15 to Rs. 283 Crore on standalone basis. EBITDA for the same period stood at Rs. 36.3 Crore grew at the rate of 31.3% YoY primarily due to fall in the operating expenses of the company. PAT rose to Rs. 18.3 Crore in Q1CY15 showing an increase of 11.1% on a YoY basis. The growth in the bottom-line was as a result of better operational performance and also due to increase in other income by 118% on a YoY basis offsetting the increase in depreciation, interest and tax expenses. NASP program proving as a key growth driver for HPPL: The creativity program of HPPL, NASP (New Applications, Structures and Products/Processes) is a major driver of growth for the Company. During CY14 the NASP sales contribution to the overall sales was around 29%, helping to drive growth. The NASP exercise creates new business, but as importantly, it also protects or even improves existing business share from a customer by creating improved packaging solutions, or improving cost competitiveness. CY13A CY14A CY15E CY16E Revenue (`cr) 1,085.5 1,225.3 1,990.5 2,073.8 EBITDA (`cr) 114.6 119.1 214.1 224.3 Net Profit (`cr) 56.2 66.6 129.8 137.4 EPS (`) 9.0 9.2 17.9 18.9 P/E (x) 27.0 26.4 13.6 12.8 P/BV (x) 0.6 0.4 0.4 0.3 EV/EBITDA (x) 15.6 15.0 8.3 8.1 ROCE (%) 12.4 10.5 17.3 14.8 ROE (%) 14.4 11.7 19.3 17.5 3 July 2015 1

HPPL is amongst the most prestigious flexible packaging companies in India. The company became a part of the Huhtamaki Packaging Worldwide in 1999 which is one of the top 10 consumer packaging companies in the world. Company snapshot Established in the year 1935, Huhtamaki PPL (then Paper Products Ltd.), is amongst the most prestigious flexible packaging companies in India. The company became a part of the Huhtamaki Packaging Worldwide in 1999, which is one of the top 10 consumer packaging companies in the world. PPL offers a wide portfolio of packaging solutions that include Flexible Packaging, Labelling Technologies and Specialised Cartons. And all this supported by the Packaging Machine Division to provide the customer with Total packaging solutions. The company is having three state of the art, fully integrated manufacturing facilities at Thane, Silvassa, Rudrapur and Hyderabad. HPPL renders services to the entire major fast moving consumer goods (where it derives almost 97% of its top-line) such as Soaps and Detergents, Shampoos, Noodles, Biscuits, Baby Foods, Chocolates, Coffee, Tea, Milk powder and Juices. Its top most clientele includes Unilever, Nestle, Cadbury, Britannia, Glaxo Smith Kline, Coca Cola, Perfetti, Dabur, Marico, P&G and Colgate Palmolive. Company s top 10 clients contribute ~60% of the revenues. Around 80% of HPPL s revenues originate from the domestic market, while exports account for the rest 20%. Consolidating its position as India's most prominent packaging institution, HPPL expanded its business into promising overseas markets with a view to benchmark itself with the global competition. Overseas, HPPL has presence across 4 continents (South Asia, Africa, Middle East, Europe and Central America) & provides service to over 50 customers worldwide. HPPL has its International Business Division (IBD) set up as a separate business group servicing large Multinational accounts across 4 continents and over 50 customers worldwide. Revenue to grow at a CAGR of ~30% during CY14-16E (` Crore) Acquisition of Positive Packaging boost its manufacturing capabilities With the acquisition, the company will gain hold of industrial and pharmaceutical product packaging thereby diversifying product coverage and strengthening its integrated capabilities. In July 2014, HPPL proposed to acquire Positive Packaging Ltd. for a sum of ~`794 Crore and completed the takeover deal in January 2015. Positive Packaging Industries has an annual turnover of approximately `1,000 crore and 6% market share. It is a privately owned flexible packaging company with nine manufacturing facilities in India and the UAE as well as significant business in Africa and other export markets. With the completion of the acquisition, Huhtamaki is looking forward to improving its flexible packaging manufacturing capabilities into Middle East and expects to double its sales in Africa. The benefits are likely to be reflected in its CY15 numbers. The current installed capacity of HPPL is 52000 MT and the utilisation rate is 75-80%. PPIL s total installed capacity stood at 45000 MT. After the completion of this acquisition, HPPL s total manufacturing capabilities will stand at ~97,000 MT, thereby increasing the utilisation rate of the company, henceforth impacting the revenues positively. 3 July 2015 2

It will also enable HPPL to gain further bargaining power with its customers, to achieve better economies of scale, to extend its customer network and would also help synergies in sourcing of inputs and upgradation in technology. We believe that along with the desired manufacturing capabilities, the company will gain hold of industrial and pharmaceutical product packaging thereby diversifying product coverage and strengthening its integrated capabilities. HPPL s installed capacity over the years (TPA) Flexible packaging industry: A key growth trigger PPL commands ~65% market share in the high-end flexible packaging industry in India, through reputed clientele like HLL, Colgate and Nestle etc. With the constant and increasing demand in the packaging industry, a wide spread of customers & a distributed product portfolio, PPL is quite confident to gain advantage from the projected growth rate of 15% per annum in the flexible packaging industry. Further, the government s bold decision to retain 51% Foreign Direct Investment in multibrand retailing will further boost the entire packaging industry to record a sustained growth in the coming years. Riding high on industrial growth HPPL being one of the largest players in India commanding ~10% of the total packaging market and close to 65% of the flexible packaging market share is a key beneficiary of the changing dynamics in the packaging industry. Ranked 11 th largest in the world, Indian packaging industry is among the fastest growing sectors spanning across almost every industry segment. It is currently valued at US$13 billion and is expected to grow to US $16.5 billion by 2016. The development in the packaging industry in India is mainly driven by the food and the pharmaceutical packaging sectors. Growing Indian middle class coupled with the growth in organized retailing in the country are propelling growth in the packaging industry. Another factor, which has provided substantial stimulus to the packaging machinery industry, is the rapid growth of exports, which requires superior packaging standards for the international market. With this the need for adopting better packaging methods, materials and machinery to ensure quality has become very important for Indian businesses. One of the most vital factors has been declining inflation trend in the country translating into declining prices of the food and beverages (constituting ~49% of the WPI). HPPL has surpassed the FMCG and Pharma industry growth rate over last three years growing at an average rate of 16.3% as compared to 14.8% growth in the former and ~11% growth in the latter. Moreover, India is striving to become a technology transfer driven country by rejuvenating the use of agricultural by-products for packaging. This will aid the packaging industry growth propelling the growth rate from current 15% annually to more than 20%. We believe that HPPL being one of the largest players in India commanding ~10% of the total packaging market and close to 65% of the flexible packaging market share is a key beneficiary of the changing dynamics in the packaging industry. 3 July 2015 32

Considerable EBITDA growth achieved in Q1CY15 on positive economic conditions On standalone basis, HPPL s topline showed a moderate increase of 4.4% on a YoY while stood at `36.3 Crore increasing by more than 31% as a result of decreasing stock pile-up and declining raw material prices. HPPL has reported a moderate growth of 4.4% YoY in its standalone revenue in Q1CY15 at `283 Crore. Since the company s 65% of revenues come from flexible packaging industry which mainly caters to the FMCG segment, favorable economic conditions like consistent inflation rate of ~5.1%, better monsoon rains than expected etc led to the aforementioned revenue growth. EBITDA for the period under review stood at `36.3 Crore showing a growth of 31.3% YoY mainly due to decrease in the stock pileup of the Company that declined by 44.7% and fall in expenses on raw materials by 1.7%. PAT was reported at `18.3 Crore in Q1CY15 showing an increase of 11.1% on a YoY basis. The growth in the bottom-line in Q1CY15 was as a result of an increase in other income by 118% on YoY basis offsetting the increase in depreciation, interest and tax expenses. Figure 1: Peer analysis Relative Price Chart HPPL* Essel Propack Uflex CMP (`) 242 132 125 M.Cap (`cr) 1,759.3 2,076.9 896.5 EPS (FY15) 9.2 9.0 35.3 BVPS (FY15)( `) 78.1 49.8 416.5 PAT Margin (%) 5.4 6.2 4.1 * CY14 Figure 2: Balance Sheet (Consolidated) (`crore) CY12A CY13A CY14A CY15E CY16E Share Capital 12.5 12.5 14.5 14.5 14.5 Reserve and surplus 342.4 378.3 552.9 657.9 770.5 Net Worth 355.0 390.8 567.5 672.4 785.0 Minority Interest 18.5 20.1 22.0 22.0 22.0 Long term borrowings 34.3 39.9 35.4 36.3 34.8 Deferred tax liability 0.7 1.0 5.5 18.9 83.3 Long-term provisions 1.5 1.3 1.4 1.4 1.5 Current Liabilities 194.0 209.4 248.3 391.3 456.8 Total Equity & Liabilities 603.9 662.5 880.1 1,142.4 1,383.5 Fixed Assets 227.9 223.2 261.7 286.1 288.5 Goodwill 19.6 19.6 19.6 19.6 19.6 Long term loans and advances 11.6 16.8 25.2 37.1 55.2 Deferred Tax Assets 0.0 0.0 0.0 0.0 0.0 Other non-current assets 3.5 4.3 0.3 0.3 0.3 Current Assets 341.4 398.7 573.5 799.3 1,019.9 Total Assets 603.9 662.5 880.1 1,142.4 1,383.5 Source: Company data; HPPL; In-house research 3 July 2015 42

Figure 3: Profit & Loss Account (Consolidated) (`crore) CY12A CY13A CY14A CY15E CY16E Net Sales 900.6 1,085.5 1,225.3 1,990.5 2,073.8 Expenses 810.9 970.9 1,106.3 1,776.4 1,849.5 EBITDA 89.7 114.6 119.1 214.1 224.3 Other Income 8.3 4.9 9.3 9.3 9.3 Depreciation 35.7 42.0 43.9 46.0 46.0 EBIT 62.3 77.4 84.4 177.3 187.6 Interest 0.6 3.8 3.1 3.1 3.1 Exceptional Item - 7.1 6.3 0.0 0.0 Profit Before Tax 61.7 80.7 87.6 174.2 184.5 Tax 16.6 22.9 19.1 44.4 47.0 Minority Interest (0.1) (1.6) (1.9) 0.0 0.0 Net Profit 45.1 56.2 66.6 129.8 137.4 Source: Company data; HPPL; In-house research Figure 4: Ratio Analysis (Consolidated) CY12A CY13A CY14A CY15E CY16E EBITDA Margin (%) 10.0 10.6 9.7 10.8 10.8 EBIT Margin (%) 6.9 7.1 6.9 8.9 9.0 NPM (%) 5.0 5.2 5.4 6.5 6.6 ROCE (%) 11.0 12.4 10.5 17.3 14.8 ROE (%) 12.7 14.4 11.7 19.3 17.5 EPS (`) 7.2 9.0 9.2 17.9 18.9 P/E (x) 33.7 27.0 26.4 13.6 12.8 BVPS(`) 56.6 62.3 78.1 92.5 108.0 P/BVPS (x) 0.7 0.6 0.4 0.4 0.3 EV/EBITDA (x) 20.0 15.6 15.0 8.3 8.1 Source: Company data; HPPL; In-house research Valuation and view Huhtamaki PPL Ltd. is one of the most prestigious flexible packaging companies in India and is continuously taking up new initiatives to expand its presence overseas to tap the vast potential in the global markets. With the recent acquisition of Positive Packaging Ltd., the manufacturing capabilities of HPPL are expected to increase considerably which in turn will increase the revenues for the Company. The Company is a market leader in the flexible packaging industry in India and has reputed clients like HLL, Colgate, Nestle, etc. It is expected that the projected growth rate of 15% in the flexible packaging industry will positively impact HPPL in the future. At a current CMP of `242, HPPL is currently trading at a P/E of 13.6x CY15E and 12.8x CY16E. Considering the company s strong fundamentals, we recommend BUY with a target price of `278, which implies potential upside of ~15% to the CMP from 6 months perspective. 3 July 2015 52

Disclaimer: 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. Muthoot Securities Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. 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. Muthoot Securities Limited 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. Muthoot Securities Limited 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 Muthoot Securities Limited endeavours 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. Muthoot Securities Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. This document disclaims any warranty of any kind imputed by the laws of any jurisdiction, whether express or implied, as to any matter what so ever relating to the service, including without limitation the implied warranties of merchantability, fitness for a particular purpose and non-infringement. Any disputes are subject to the jurisdiction only of the Courts of Republic of India at Cochin. Muthoot Securities Ltd shall not be liable for any misrepresentation, falsification and deception or for any lack of availability of services through website even if the same is advertised on the website. Neither Muthoot Securities Limited, 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. Disclosures: 1 Analyst ownership of the stock No 2 Broking relationship with company covered No Abhishek Das abhishek.das@muthootsecurities.com Kiran Kumar kiran.kumar@muthootsecurities.com Vinod E S vinod.es@muthootsecurities.com 3 July 2015 62