es Result Update Rating matrix Rating : Hold Target : 585 Target Period : 12 months Potential Upside : 6% What s changed? Target Changed from 515 to 585 EPS FY18E Changed from 16.7 to 17.0 EPS FY19E Changed from 19.0 to 20.2 Rating Unchanged Quarterly performance Q4FY17 Q4FY16 YoY (%) Q3FY17 QoQ (%) Revenue 591.4 544.0 8.7 640.2-7.6 EBITDA 56.6 56.2 0.7 75.7-25.3 EBITDA (%) 9.6 10.3-76 bps 11.8-226 bps PAT 35.9 28.2 27.3 37.7-4.8 Key financials ( crore) FY16 FY17E FY18E FY19E Net Sales 2,418 2,467 2,754 3,118 EBITDA 270 278 324 379 Net Profit 218 159 219 260 EPS ( ) 17.0 12.3 17.0 20.2 Valuation summary FY16 FY17E FY18E FY19E P/E 32.6 44.9 32.6 27.5 Target P/E 34.5 47.5 34.4 29.0 EV to EBITDA 25.1 23.8 20.7 17.6 Price to book 6.0 5.4 5.1 4.7 RONW (%) 18.5 12.0 15.8 17.0 ROCE (%) 16.5 16.1 18.4 20.0 Stock data Particular Amount Market Capitalisation ( Crore) 7,133.3 Debt (FY17) ( Crore) - Cash (FY17) ( Crore) 520.8 EV ( Crore) 6,612.5 52 week H/L 613 / 400 Equity Capital ( Crore) 64.3 Face Value ( ) 5 Price performance 1M 3M 6M 12M Bata India -0.7 13.4 31.3-3.8 Relaxo Footwear -5.2 9.7 17.4-2.3 Liberty Shoes 8.5 12.2 33.8-6.4 Research Analysts Bharat Chhoda bharat.chhoda@icicisecurities.com Cheragh Sidhwa cheragh.sidhwa@icicisecurities.com Green shoots visible in Q4FY17 May 18, 2017 Bata India (BATIND) 555 Bata reported decent revenue growth of 8.7% YoY to 591.4 crore, marginally below our estimate of 615.9 crore. Q4FY17 witnessed the commencement of a new range in men & ladies contemporary collection along with new range targeted towards youth On account of extension of the end of season sales period (EOSS), gross margins declined 220 bps YoY to 54.1% vs. estimated 53.5% while EBITDA margins contracted 76 bps YoY to 9.6% (I-direct estimate: 10.8%). The decline in EBITDA margins was stemmed by a fall in employee cost and other expenses as a percentage of sales (positive operating leverage). Absolute EBITDA was flat YoY at 56.6 crore vs. estimated 66.3 crore Despite flat EBITDA, PAT rose 27.2% YoY to 35.9 crore (I-direct estimate: 38.5 crore). Lower depreciation cost (down 20% YoY) and higher other income (up 21% YoY) aided PAT growth. Also, a higher tax base in Q4FY16 supported PAT growth The board has recommended a dividend of 3.5 per share New contemporary collection launched Q4FY17 witnessed the commencement of a new range in men and ladies contemporary collection along with a new range targeted towards youth. Bata also collaborated with fbb Colors Femina Miss India 2017. To lure today s young generation, the company is undergoing a process for a makeover in its product portfolio. Bata will bring in a young team of designers and communication specialists who will focus on casual fashion footwear. Bata has lined up new launches in youth-oriented space through its sub-brands like Power, Weinbrenner and Footin. The upcoming new brands will be more casual and stylish to attract the youth. Stepping up store expansion via franchisee route The management has indicated at expanding its business via a franchise model rather than opening company owned EBOs that have a long gestation period to break even due to relatively higher rentals & maintenance cost. Currently, Bata has 1265 stores, of which ~65 are franchise stores. The company is evaluating new locations and has currently identified 100 potential trade areas covering both malls, high street areas. Bata would also like to open more stores in tier II and tier III cities through the franchisee route. Hush Puppies has shown good traction in recent times. The management intends to open 20 exclusive Hush Puppies store every year. Signs of recovery visible; maintain HOLD FY17 turned out to be a lacklustre year for the company owing to sluggish consumer sentiments and negative impact of demonetisation. However, green shoots of recovery were visible in Q4FY17 as Bata reported high single digit revenue growth. The company s efforts have been in the right direction with increasing focus on youth and women centric designs. In addition, Bata s retail expansion via franchisee route in tier II and tier III cities augurs well. It is also doubling its advertising expenditure in FY18 for brand building purposes. With a gradual recovery in consumer sentiments, we expect Bata to register revenue CAGR of 12.4% in FY17-19E. We have revised our earnings estimates upwards for FY18E and FY19E. However, as the stock has already run-up ~15% since our last update, we continue to assign a HOLD recommendation to the stock with a target price of 585 (based on 29.0x FY19E EPS of 20.2). ICICI Securities Ltd Retail Equity Research
Variance analysis Q4FY17 Q4FY17E Q4FY16 YoY (%) Q3FY17 QoQ (%) Comments Revenue 591.4 615.9 544.0 8.7 640.8-7.7 High single digit revenue growth but below our estimates Raw Material Expense 271.4 286.2 237.6 14.2 303.9-10.7 Gross Margin (%) 54.1 53.5 56.3-221 bps 52.6 374 bps Employee Expense 71.8 64.6 68.0 5.6 65.8 9.1 Rental Expenses 94.1 91.1 88.1 6.8 89.9 4.7 Other Expenses 97.5 107.7 94.1 3.6 105.6-7.6 EBITDA 56.6 66.3 56.2 0.7 75.7-25.3 EBITDA Margin (%) 9.6 10.8 10.3-76 bps 11.8-225 bps Depreciation 16.6 17.5 20.6-19.4 16.2 2.5 Interest 1.6 0.6 0.5 220.0 0.5 201.9 Other Income 12.2 9.2 10.1 20.8 19.0-35.7 Exceptional Item 0.00 0.00 0.00 NA -21.67 NA PBT 50.6 57.5 45.2 11.9 56.3-10.1 Tax Outgo 14.70 19.0 17.0-13.5 18.6-20.9 PAT 35.9 38.5 28.2 27.3 37.7-4.8 Higher discounting owing to extended end of season sale impacting gross margins Lower depreciation cost and higher tax base in Q4FY16, supported PAT growth Change in estimates FY18E FY19E ( Crore) Old New % Change Old New % Change Comments Revenue 2,750.2 2,754.3 0.1 3,057.2 3,117.8 2.0 We have revised our estimates marginally upwards EBITDA 320.4 323.7 1.0 371.6 379.0 2.0 EBITDA Margin (%) 11.7 11.8 10 bps 12.2 12.2 0 bps PAT 214.3 219.1 2.2 244.7 259.8 6.2 EPS ( ) 16.7 17.0 2.1 19.0 20.2 6.4 ICICI Securities Ltd Retail Equity Research Page 2
Exhibit 1: Bata brands Company Analysis Revenues to grow at CAGR of 12.4% for FY17-19E Bata has adopted a strategy to design products based on various consumers. Other than its leather footwear, the company has started focusing on products catering to the youth, women and kids along with brand extensions in the accessories segment. Bata is lining up new launches in youth-oriented space through its sub-brands like Power, Weinbrenner and Footin. Upcoming new brands will be more casual and stylish to attract the youth. The company is also tapping into fast growing e-commerce by partnering with major players like Flipkart, Amazon, Myntra and Jabong besides its own portal. At the top of the product pyramid for Bata, it has placed the brand Hush Puppies. Hush Puppies has seen good growth over the years and sold over a million pairs in FY15, FY16. The brand has a presence through 68 exclusive brand stores and 37 shop-in-shops in premium departmental stores. The company is planning to position Hush Puppies as an international premium lifestyle brand, which will be more comfortable and contemporary fashion style. The company plans to open Hush Puppies and Footin stores thereby catering to family, women, men, youth and kids segments. The company is also aggressively focussing on children s footwear through the Bubblegummers brand. As per the company, this segment has huge potential with ~18% of India s population below 10 years of age. The company has also entered into an association with brand Disney to create a complete collection covering all types of footwear ranging from casual shoes, canvas shoes to ballerinas to everyday-wear sandals and chappals. For FY17, Bata reported marginal revenue growth of 2% YoY to 2467.1 crore owing to subdued consumer sentiments and demonetisation impacting the consumer discretionary spending. Going forward, we expect revenue growth to revive from FY18E onwards on account of an improved product mix and company following the dual strategy of driving SSSG and opening new stores in untapped locations via the franchisee roué. We expect revenues to grow at 12.4% CAGR YoY in FY17-19E. Exhibit 2: Revenue trend crore 3,500 3,000 2,500 2,000 1,500 1,000 987 1,092 1,258 1,543 1,842 2,065 2,694 2,418 2,467 2,754 3,118 500 - CY08 CY09 CY10 CY11 CY12 CY13 FY15 FY16 FY17E FY18E FY19E ; FY15 is for 15 months ICICI Securities Ltd Retail Equity Research Page 3
Focus on expansion via franchise stores Over the last three or four years, the company has clearly focused on closing down stores of ~1,000 sq ft and has been adding stores averaging ~3,000 sq ft. The stores added in 2016 have been larger in size and based on the global design with ample space for displaying the larger range of products. The management has indicated at expanding its business via franchise model rather than opening company owned EBOs that have a long gestation period to breakeven due to relatively higher rentals & maintenance cost. Bata currently has 1265 stores, of which ~65 are franchise stores. The company is evaluating new locations and has currently identified 100 potential trade areas covering both malls, high street areas. The company would also like to open more stores in tier II and tier III cities through the franchisee route. Hush Puppies has shown good traction in recent times. The management intends to open 20 exclusive Hush Puppies stores every year. Bata also plans to add five destination stores each year. Such destination stores will have very large retail space located on the outskirts of cities with all amenities like ample parking space, children s play area and food court. Also, the company will continue renovating existing stores and improving layouts with the objective of increasing same store sales growth for these stores. EBITDA margins to improve on back of higher share of premium brands For FY17, EBITDA margins stayed suppressed on account of stagnant revenue growth and higher fixed overheads like rent expense & employee cost, resulting in negative operating leverage. Operating margins stayed flattish YoY at 11.3% in FY17 while absolute EBITDA grew 2.8% YoY to 277.9 crore. However, we expect margins to stabilise in FY18E owing to a) revival in revenue growth, b) improved product mix (higher share of premium brands), c) promotional offers & discount schemes to boost online & offline sales and d) higher SSSG from existing stores. Exhibit 3: EBITDA margins to improve from FY18E onwards 400 20 ( crore) 350 300 250 200 150 100 50 9.2 91 11.9 129 13.3 168 15.5 15.5 239 285 16.2 334 335 270 278 324 379 12.4 11.812.2 11.2 11.3 15 10 (%) - CY08 CY09 CY10 CY11 CY12 CY13 FY15 FY16 FY17E FY18E FY19E 5 EBITDA EBITDA Margin ; FY15 is for 15 months ICICI Securities Ltd Retail Equity Research Page 4
PAT, return ratios to recover from FY18E onwards PAT for the year declined 27.4% YoY to 158.7 crore on account of subdued revenue growth and one-time exceptional expense of voluntary retirement scheme for the Faridabad unit, which was at 21.7 crore. Going forward, we expect a revival in PAT from FY18E onwards. We expect PAT to increase from 159 crore in FY17 crore to 260 crore in FY19E, translating to a CAGR of 27.9%. Simultaneously, return ratios are likely to pick up, going forward. We expect return on capital employed (RoCE) to increase from 16.1% in FY17 to 20% in FY19E. Exhibit 4: PAT margin to improve FY18E onwards Exhibit 5: return ratios to improve from FY18E onwards ( crore) 300 250 200 150 100 50-226 231 8.6 172 191 9.3 9.2 218 219 9.0 8.6 159 6.4 8.0 260 CY11 CY12 CY13 FY15 FY16 FY17E FY18E FY19E 8.3 15 10 5 (%) (%) 45 38 31 24 17 10 34 33 33 33 28 39 25 16 18 20 24 25 23 23 16 20 18 12 16 17 CY09 CY10 CY11 CY12 CY13 FY15 FY16 FY17E FY18E FY19E PAT PAT Margin RoE RoCE ICICI Securities Ltd Retail Equity Research Page 5
Valuation FY17 turned out to be a lacklustre year for Bata owing to sluggish consumer sentiments and negative impact of demonetisation. However, signs of green shoots were visible in Q4FY17 as the company reported high single digit revenue growth. Bata s efforts have been in the right direction with increasing focus on youth and women centric designs. In addition, its retail expansion via franchisee route in tier II and tier III cities augurs well. Bata is also doubling its advertising expenditure in FY18 for brand building purposes. With a gradual recovery in consumer sentiments, we expect it to register revenue CAGR of 12.4% in FY17-19E. We have revised our earnings estimates upwards for FY18E and FY19E. However, as the stock has already run-up ~15% since our last update, we continue to assign a HOLD recommendation to the stock with a target price of 585 (based on 29.0 FY19E EPS of 20.2). Exhibit 6: Valuations Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE ( cr) (%) ( ) (%) (x) (x) (%) (%) FY16 2418.5-10.2 17.0-5.5 32.6 25.1 18.5 16.5 FY17E 2467.1 2.0 12.3-27.4 44.9 23.8 12.0 16.1 FY18E 2754.3 11.6 17.0 38.0 32.6 20.7 15.8 18.4 FY19E 3117.8 13.2 20.2 18.6 27.5 17.6 17.0 20.0 ICICI Securities Ltd Retail Equity Research Page 6
Recommendation history vs. consensus estimate ( ) 950 850 750 650 550 450 350 250 May-15 Jul-15 Sep-15 Dec-15 Feb-16 May-16 Jul-16 Oct-16 Dec-16 Mar-17 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 May-17 (%) Price Idirect target Consensus Target Mean % Consensus with BUY Source: Bloomberg, Company, ICICIdirect.com Research Key events Date Event Jan-11 From the 10-12% topline growth, the company starts to report revenue growth in excess of 20% Sep-11 In Q3CY11, the company achieved a topline growth of 26.3% YoY. The operating margin too expanded from 12.8% (Q3CY10) to 14.5% (Q3CY11) Dec-11 After a series of margin expansions over the last five to seven years, the operating margin remains flat at 15.5% for CY11 May-12 The company continues to post robust topline growth. The PAT growth was even faster considering margin expansion Apr-13 The rate of topline growth comes down to low double digits and as margins remain flattish, pace of PAT growth starts to decline. PAT grows 6.8% in Q1CY13 Jul-13 Bata announces plans to open 100 stores each year thereby increasing the scope for revenue growth Jan-14 The company's growth rate slipped to higher single digits on the back of dampened consumer sentiment. Revenues grew ~9% in Q4CY13 and Q1CY14. Similarly, PAT growth slipped to the 2.5-3.5% range May-15 Announces stock split from face value 10 to 5 Aug-15 Ties up US footwear brand Caterpillar Sep-15 Bata stock split from face value 10 to 5 Dec-16 Lining up new launches in youth oriented space through its sub-brands like 'Power' and 'Weinbrenner' Mar-17 Extension of EOSS period impacts margin in Q4FY17 Top 10 Shareholders Rank Investor Name Latest Filing Date % O/S Position (m) Change (m) 1 Bata (BN) B.V. 31-Mar-17 52.96% 68.1 0.00 2 Life Insurance Corporation of India 31-Mar-17 6.52% 8.4 0.00 3 ICICI Prudential Asset Management Co. Ltd. 31-Mar-17 4.19% 5.4-0.15 4 Franklin Templeton Asset Management (India) Pvt. Ltd. 31-Mar-17 3.53% 4.5 0.00 5 Birla Sun Life Asset Management Company Ltd. 30-Apr-17 2.06% 2.6 0.00 6 Fidelity International Asset Management Company (Korea) 31-Mar-17 2.00% 2.6 0.00 7 FIL Investment Management (Singapore) Ltd. 30-Nov-16 2.00% 2.6 0.45 8 IDFC Asset Management Company Private Limited 31-Mar-17 1.21% 1.6 0.00 9 Kotak Mahindra Old Mutual Life Insurance, Ltd. 31-Mar-17 1.01% 1.3 1.30 10 Lombard Odier Darier Hentsch & Cie 31-Jan-17 0.98% 1.3 0.18 Source: Reuters, ICICIdirect.com Research Shareholding Pattern (in %) Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Promoter 53.0 53.0 53.0 53.0 53.0 FII 9.0 7.5 5.8 5.6 6.8 DII 18.7 20.3 21.8 22.8 21.3 Others 19.4 19.3 19.5 18.6 19.0 Recent Activity BUY SELL Investor Name Value Shares Investor Name Value Shares Kotak Mahindra Old Mutual Life Insurance, Ltd. 11.4 1.3 Axis Asset Management Company Limited -8.5-1.4 FIL Investment Management (Singapore) Ltd. 2.7 0.5 Baroda Pioneer Asset Management Company Limited -2.0-0.3 Kotak Mahindra Asset Management Company Ltd. 2.9 0.4 Schroder Investment Management Ltd. (SIM) -1.1-0.2 Manulife Asset Management (Asia) 2.3 0.3 ICICI Prudential Asset Management Co. Ltd. -1.3-0.2 Lombard Odier Darier Hentsch & Cie 1.2 0.2 Pioneer Investment Management Ltd. -0.6-0.1 Source: Reuters, ICICIdirect.com Research ICICI Securities Ltd Retail Equity Research Page 7
Financial summary ES Profit and loss statement Crore (Year-end March) FY16 FY17E FY18E FY19E Total operating Income 2,418.5 2,467.1 2,754.3 3,117.8 Growth (%) 2.0 11.6 13.2 Raw Material Expenses 1,155.9 1,152.8 1,320.6 1,488.6 Employee Expenses 262.5 272.7 311.2 367.9 Mfg, Admin & selling Exps 729.7 763.7 798.7 882.3 Total Operating Expenditure 2,148.1 2,189.2 2,430.6 2,738.8 EBITDA 270.3 277.9 323.7 379.0 Growth (%) 2.8 16.5 17.1 Depreciation 75.2 65.0 68.2 73.4 Interest 1.7 4.3 2.8 3.1 Other Income 30.1 46.6 64.7 68.6 Exceptional Item 74.7-21.7 0.0 0.0 PBT 298.2 233.5 317.5 371.1 Growth (%) -24.8 14.2 24.4 16.9 Total Tax 79.7 74.8 98.4 111.3 PAT 218.5 158.7 219.1 259.8 Growth (%) -27.4 38.0 18.6 EPS ( ) 17.0 12.3 17.0 20.2 Cash flow statement Crore (Year-end March) FY16 FY17E FY18E FY19E Profit before Tax 223.5 255.2 317.5 371.1 Add: Depreciation 75.2 65.0 68.2 73.4 (Inc)/dec in Current Assets 1.9-22.6-70.4-148.6 Inc/(dec) in CL and Provisions -51.6 22.5 10.0 71.0 Taxes Paid -79.7-74.8-98.4-111.3 Others -12.9-9.7-16.7-17.5 CF from operating activities 156.5 235.6 210.1 238.0 (Inc)/dec in Fixed Assets 24.8-114.1-102.0-134.3 Others 16.4 14.0 21.4 22.6 CF from investing activities 41.2-100.1-80.6-111.7 Issue/(Buy back) of Equity 0.0 0.0 0.0 0.0 Inc/(dec) in loan funds 0.0 0.0 0.0 0.0 Dividend paid & dividend tax -55.4-73.6-101.6-120.5 Others -1.7-4.3-1.8-2.1 CF from financing activities -57.1-77.9-103.4-122.7 Net Cash flow 140.5 57.6 26.1 3.7 Opening Cash -45.1 95.4 153.0 181.2 Deposits with maturity > 3 months 245.0 367.8 267.4 265.0 Closing Cash 340.5 520.8 448.6 451.8 Balance sheet Crore (Year-end March) FY16 FY17E FY18E FY19E Liabilities Equity Capital 64.3 64.3 64.3 64.3 Reserve and Surplus 1,118.6 1,261.0 1,321.1 1,460.4 Total Shareholders funds 1,182.9 1,325.3 1,385.4 1,524.6 Total Debt - - - - Deferred Tax Liability - - - - Minority Interest / Others - - - - Total Liabilities 1,182.9 1,325.3 1,385.4 1,524.6 Assets Net Block 307.7 271.6 362.3 425.9 Capital WIP 13.4 24.3 8.5 6.8 Total Fixed Assets 321.1 295.9 370.8 432.7 Investments 5.0 5.0 5.0 5.0 Inventory 678.8 705.4 802.1 918.3 Debtors 69.6 67.1 58.1 63.2 Loans and Advances 219.2 175.1 198.3 224.5 Other Current Assets 10.2 52.8 12.3 13.5 Cash 340.5 520.8 448.6 451.8 Total Current Assets 1,318.3 1,521.2 1,519.4 1,671.3 Current Liabilities 502.0 581.6 480.8 532.2 Provisions 61.4 4.3 115.1 134.7 Total Current Liabilities 563.4 585.9 595.9 666.9 Net Current Assets 754.9 935.3 923.5 1,004.4 Deferred Tax Assets 101.9 89.1 86.1 82.6 Application of Funds 1,182.9 1,325.3 1,385.4 1,524.6 Key ratios (Year-end March) FY16 FY17E FY18E FY19E Per share data ( ) EPS 17.0 12.3 17.0 20.2 Cash EPS 22.8 17.4 22.3 25.9 BV 92.0 103.1 107.8 118.6 DPS 3.5 4.9 6.8 8.1 Cash Per Share 26.5 40.5 34.9 35.2 Operating Ratios EBITDA Margin (%) 11.2 11.3 11.8 12.2 PBT Margin (%) 12.3 9.5 11.5 11.9 PAT Margin (%) 9.0 6.4 8.0 8.3 Inventory days 103.0 105.0 106.3 107.5 Debtor days 9.5 7.4 7.7 7.4 Creditor days 135.1 112.0 113.0 112.5 Return Ratios (%) RoE 18.5 12.0 15.8 17.0 RoCE 16.5 16.1 18.4 20.0 RoIC 26.1 19.8 23.5 24.3 Valuation Ratios (x) P/E 32.6 44.9 32.6 27.5 EV / EBITDA 25.1 23.8 20.7 17.6 EV / Net Sales 2.8 2.6 2.4 2.1 Market Cap / Sales 2.9 2.9 2.5 2.3 Price to Book Value 6.0 5.4 5.1 4.7 Solvency Ratios Debt/EBITDA 0.0 0.0 0.0 0.0 Debt / Equity 0.0 0.0 0.0 0.0 Current Ratio 2.3 2.6 2.5 2.5 Quick Ratio 1.1 1.4 1.2 1.1. ICICI Securities Ltd Retail Equity Research Page 8
ICICIdirect.com coverage universe (Retail) CMP M Cap EPS ( ) P/E (x) EV/EBITDA (x) RoCE (%) RoE (%) Sector / Company ( ) TP( ) Rating ( Cr) FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E FY18E Bata India (BATIND) 555 585 Hold 7,261 17.0 12.3 17.0 32.6 44.9 32.6 25.1 23.8 20.7 16.5 16.1 18.4 18.5 12.0 15.8 Shoppers Stop (SHOSTO) 335 350 Hold 2,786 0.3-4.5 0.8 1,240-80.2 434.2 20.2 20.7 17.3 4.3 2.1 3.7 0.5-7.7 1.4 Titan Company (TITIND) 480 510 Hold 42,596 8.0 8.6 12.0 60.4 55.9 40.0 44.6 34.6 28.5 23.4 25.6 27.9 20.1 17.7 22.2 ICICI Securities Ltd Retail Equity Research Page 9
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 400 093 research@icicidirect.com ICICI Securities Ltd Retail Equity Research Page 10
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