Recommendation Subscribe BACKGROUND Price Band Rs. 570 Rs. 572 Incorporated in 2009, Indostar Capital Finance Limited (Indostar) is a Bidding Date 9 th 11 th May, 2018 Book Running Lead Manager Registrar Sector JM, Kotak, Morgan Stanley, Motilal Oswal, Nomura Minimum Retail Application- Detail at Cut off Price Link Intime NBFC Number of Shares 26 Minimum Application Money Rs. 14,872 Discount to retail No discount Financials (Rs Cr) FY16 FY17 Net Interest Income 275 332 Pre-Provision Profit 297 335 PAT 192 211 Lower Upper Valuations Band Band Market Cap (Rs in Cr) 5198 5213 EPS* 24.1 24.1 P/E ratio* 23.7 23.8 P/ABV* 1.9 1.9 RoE (%)* 10.9% 10.9% * 9MFY18 annualised numbers (post issue) Post Issue Shareholding Pattern Promoters 59.0% Others 41.0% Offer structure for different categories QIB (Including Mutual Fund) 50% Non-Institutional 15% Retail 35% Post Issue Equity (Rs. in cr) 90.9 Issue Size (Rs in cr) 1840 1844 Face Value per share (Rs) 10 Jehan Bhadha (+91 22 6273 8174) Research Analyst jehankersi.bhadha@nirmalbang.com professionally managed and institutionally owned, leading NBFC which is primarily engaged in providing structured term lending to corporates and loans to SME borrowers in India. The company has recently expanded their portfolio to offer Vehicle Finance and Housing Finance products. The Promoter of the company is Indostar Capital which is promoted by Indostar Everstone and Everstar Holdings Pte. Ltd. Details of the Issue: The public issue of Indostar consists of a fresh issue of equity shares aggregating up to Rs. 700 Cr and an offer for sale of Rs. 1,144 Cr. Objects of the Issue: The object of the issue is to augment the capital base to meet the NBFC s future capital requirements such as expansion and to comply with regulatory requirements for enhanced capital base. Investment Rationale: (a) Stable corporate book and on-boarding of industry leading personnel at senior and mid management level to pave way for strong growth in CV financing (b) Consistent track record of (i) growth (three year loan CAGR of 17%), (ii) stable asset quality (GNPA of 1.7%), (iii) optimum diversification of funding mix and (iv) robust capital base (c) Expansion of geographical footprint and sourcing platforms for products across India Valuation and Recommendation Indostar has demonstrated strong execution capabilities by initially building the corporate book (~77% of loans) and subsequently entering and successfully executing in SME financing (~23% of loans). Incremental growth is expected to be higher than previous years, driven mainly by CV financing followed by corporate, SME and housing finance. ROA is expected to be maintained in the 3.5-4.0% range going forward; combined with an increase in leverage from less than 3x currently to ~5x, we believe ROE is slated to increase and stabilize at higher levels compared to prior years. Indostar is being offered at trailing (Dec 2017) P/ABV of 1.9x & P/E of 23.8x on post diluted basis, leaving good scope for appreciation for investors and thus we recommend subscribing to the issue. Financial Snapshot FY15 FY16 FY17 9MFY18 -A Net Interest Income 207 275 332 381 YoY growth (%) 24% 32% 21% 15% Pre Provision Profit 229 297 335 345 YoY growth (%) 34% 29% 13% 3% PAT 149 192 211 219 YoY growth (%) 33% 29% 10% 4% P/E @ Rs.572 23.8 x P/Adj. BV @ Rs. 572 1.9 x 9MFY18-A: Annualised on post issue basis 1 P a g e
Business Overview Incorporated in 2009, Indostar Capital Finance Limited (Indostar) is a professionally managed and institutionally owned, leading NBFC which is primarily engaged in providing structured term lending to corporates and loans to SME borrowers in India. The company has recently expanded their portfolio to offer Vehicle Finance and Housing Finance products. The Promoter of the company is Indostar Capital which is promoted by Indostar Everstone and Everstar Holdings Pte. Ltd. Indostar operates 4 principal lines of businesses, namely: 1. Corporate Lending Lending to mid-to-large sized corporates in Manufacturing, Services and infrastructure industries, by way of senior secured debt, structured financing, promoter financing and special situation funding and Lending to real estate developers (~42% of total advances), mainly for financing project level construction of residential and commercial building projects and take-out of earlystage equity investors. 2. SME Lending The SME lending business, which Indostar commenced in 2015, primarily involves them extending secured loans for business purposes to small and medium size enterprises, including businessmen, traders, manufacturers and self-employed professionals. The property securing these loans is typically completed and largely self-occupied residential and commercial property. 3. Vehicle finance The Vehicle Finance business primarily involves providing financing for purchases of used or new commercial vehicles, passenger vehicles and two-wheelers. The company has commenced their vehicle finance business in November 2017. Vehicle finance operations involves a relatively larger sourcing team as compared to their other businesses as it is based on employees experience of working with customers with limited credit history and their ability to effectively assess risks with financing used vehicles. 4. Housing finance: The housing finance business comprises 2 business lines, namely: o Affordable housing finance, which commenced operations in September 2017, and o Retail housing finance, which is expected to commence operations by March 2018 Exhibit 1: Segment-wise metrics Parameter Corporate CV SME Home AUM Mix FY14 100% 0% 0% 0% AUM Mix 9MFY18 76.7% 0.3% 22.7% 0.3% Long-term Mix Projected 50.0% 25.0% 15.0% 10.0% Ticket Size (Rs Cr) 100-200cr 0.03 0.04 1.0 0.10-0.15 Yields 14.1% 16-17% 11.1% 12-13% Sourcing In-house In-house Mainly DSA In-house Tenure (Years) 3-5 3-4 Ongoing/W.Cap 10 Source: Company, NBRR 2 P a g e
Investment Rationale Highly professional and experienced management team incentivized via ESOPs Indostar has a highly professional and experienced management team which has led through changing regulatory and economic environment and consistently grown the business. Each member of the senior management team has over 20 years of experience in the finance/banking industry and possesses in-depth understanding of the specific industry, products and geographic regions they cover. Strong and experienced leadership has further enabled Indostar to attract capable and experienced top and mid level management employees. The senior and mid-level management team has been incentivized through ESOPs, thereby enabling a strong alignment of their interests in line with the company s performance. Many of Indostar s directors and key management personnel own sizeable shares of the company. The key addition to the management team has been that of Mr. R. Sridhar who joined the company as CEO in April 2017. He has three decades of experience in the financial services industry. He was previously associated with various entities forming part of the Shriram group, and held the position of MD of Shriram Transport between 2000-2012 and prior to that was the President at the company from 1994-2000. It was under his leadership that Shriram Transport underwent metamorphosis and experienced its golden period. Ownership by institutional investors ensures international corporate governance standards The promoter, Indostar Capital, which is part of the Everstone Group, is an India and Southeast Asia focused investor which was recognized as Private Equity Firm of the Year in India by Private Equity International for six consecutive years from 2011 to 2016, with approximately US$4.0 bn of assets under management. In addition to assisting the company with capital raising and obtaining strong credit ratings, the company also benefits from its relationship with the promoter with regards to access to best industry practices and international corporate governance standards. Well-established corporate lending business Indostar has established a strong corporate lending business, primarily providing secured loans to manufacturing and service companies by way of structured financing, promoter financing and special situation funding and to leading real estate developers for financing project level construction of residential properties and take-outs of early stage equity investors. Indostar has been able to scale up the book to Rs. 3,969 Cr as on Dec 2017, in a matter of seven years. The success of corporate lending business is underpinned on: (a) Experience and expertise in identifying and directly sourcing potential borrowers through our knowledge of local markets and customer centric approach, (b) (c) (d) Ability to offer customized solutions to address customers financial requirements, Ability to structure loan products to maximize returns, where initial fee accruals and average life of loans being less than the tenor of the loans have allowed the company to enjoy relatively higher internal rates of returns, Ensuring lending is done to borrowers with proven track record and strong cash flow and also obtaining sufficient collateral. 3 P a g e
Loan book mix shift towards Commercial Vehicle financing to create incremental value Indostar has been creating a robust launch pad to propel the company into the next phase of growth which will be led by CV (commercial vehicle) financing. Indostar initially established its corporate book and attained respectable size and cash flow generation post which it expanded into SME business (23% of loans). Over the course of last one year, Indostar has taken significant steps for expansion into CV financing. The company has made several top and mid management level recruitments with extensive industry experience in CV financing, Mr. R. Sridhar being one of the key recruits who held the position of MD of Shriram Transport between 2000-2012 and led the transformation of the company. Indostar has already commenced 56 branches as on Feb 2018 and expects to reach a network of 100 branches by June 2018. The branch network is built on a hub and spoke model. Indostar shall focus on used CVs having age between 5-12 years while targeting 2 nd and 3 rd cycle buyers and avoid 1 st time buyers to reduce risks. As per the company, the addressable market for used CVs stands at ~60-70 lac vehicles while the financing penetration stands at barely ~40%. The CV financing book is likely to form ~25% of overall mix in coming years. Resultantly, although the corporate book shall continue to grow at a healthy pace, its mix shall decline from 77% as on Dec 2017 to ~50% in the long term. SME and housing would form the balance ~25% of the book in the long term. As the total retail mix of Indostar moves from 23% as on Dec 2017 to ~50% in coming years, the valuations commanded by the company shall witness an expansion to that extent. Proven track record of delivering results Indostar has experienced growth since the commencement of operations in 2011 and has a proven track record of delivering results. The loan book has grown at a CAGR of 20% since FY14. Loan growth has come off in 9MFY18 due to prepayment by a few clients (worth ~Rs. 700cr) who infused equity in their businesses and replaced the company s loans. This is an aberration and should correct itself soon. Indostar has been able to maintain its ROA at an attractive level of ~4.0% over the years. Exhibit 2: Loan CAGR of 20% over FY14-9MFY18; Robust ROA maintained over the years 6000 5000 4000 3000 2000 4.2% 4.2% 2,572 3,375 4.4% 4,265 5,145 5,147 4.1% 3.8% 5.0% 4.5% 4.0% 3.5% 1000 FY14 FY15 FY16 FY17 9MFY18 3.0% Loan Book ROA Source: RHP, NBRR 4 P a g e
Expansion of geographical footprint and sourcing platform for products across India Indostar shall selectively expand its business operations in tier I, tier II and tier III cities in the northern, southern and western regions of India. It intends to grow its branches in 15 key states across India and expects to have approximately 130 branches by June 2018 out of which approximately 100 will be focused on vehicle finance business and remaining 30 for SME lending and housing finance business. Indostar will operate on a hub-and-spoke model in an effort to leverage common infrastructure and optimize operational efficiency. The branches would report to area corporate office, manned by sales and credit teams for each retail business, which will in turn report to the state level corporate office. The business will continue to be managed in a centralized way and the corporate headquarter will exercise overall control and supervision. This model would allow it to expand with lower marginal costs and increase profitability. High asset quality achieved through robust credit assessment and risk management framework Indostar actively monitors the performance of its loans and the quality of its loan portfolio is reflected by the company s low rates of GNPAs and NNPAs. Indostar has a robust and comprehensive credit assessment and risk management framework to identify, monitor and manage risks inherent in their corporate and retail lending operations. The corporate lending credit assessment and risk management framework comprises of a 4-stage framework, spanning across: (a) The Screening stage, where the credit and sourcing teams conduct an initial screening of their prospective borrowers; (b) The evaluation stage, where the credit team evaluates the prospective borrower s business and financing needs and investigates the prospective borrower s track record, market reputation and ability to repay any loans extended to it, before presenting the proposal to their corporate lending committee; (c) The approval stage, where the loan proposal is presented to the credit committee for final approval and loan disbursement; and (d) The sanction and monitoring stage, where their credit team regular monitors their loan portfolio to allow for early identification of problematic loans. Exhibit 3: Superior asset quality despite higher corporate mix 2.0% 1.6% 1.4% 1.7% 1.2% 0.8% 0.4% 0.0% 0.8% 1.4% 1.2% 0.6% 0.7% 0.5% 0.2% 0.2% FY14 FY15 FY16 FY17 9MFY18 GNPA NNPA Source: RHP 5 P a g e
Robust Capital Base A strong capital base is a pre-requisite for growth in the lending industry. In addition to a consistent financial performance, Indostar is well capitalised with a robust capital base to support continuous business growth within a strong risk management framework. As on Dec 2017, the Capital Adequacy Ratio stands at 31.6%, with a Tier I capital ratio at 31.3%, as compared to RBIs requirement of 15%. Fresh capital raised through IPO will further improve Capital Adequacy Ratio to 42.1% (based on Dec 2017 financials) which will support strong growth in coming years. Optimum diversification of borrowings has led to lower cost of funds Indostar has a well diversified funding profile that underpins its strong liquidity management system, strong credit rating and brand equity. Indostar has long-term relationships with lenders which include 14 public sector banks, 13 private sector banks, 21 mutual funds and 4 insurance companies and other financial institutions. Diversification of sources of funding has contributed to an overall reduction in cost of funds in recent years. Exhibit 4: Shift in funding mix towards low cost avenues 100% 80% 60% 40% 20% 0% 12% 24% 64% FY13 Banks NCD CP 34% 22% 44% Dec-17 Source: RHP Exhibit 5: Cost of funds have reduced faster than the decline in systemic rates Parameter FY15 FY16 FY17 9MFY18 Indostar - Cost of funds 11.8% 11.2% 10.3% 9.1% Reduction YoY 0.3% 0.6% 0.9% 1.2% RBI Repo Rate 7.5% 6.75% 6.25% 6.0% Reduction YoY 0.5% 0.75% 0.5% 0.25% Indostar Spreads 2.5% 3.3% 3.5% 4.2% Source: Company, NBRR 6 P a g e
Key Risk and Concerns Excessive focus on corporate credit raises concerns towards vulnerability of asset quality As of Dec 2017, 76.7% of advances consisted of corporate loans. Corporate loans are riskier vis-à-vis retail loans as ticket sizes range from Rs.100-200 Cr and thus a few bad loans could lead to an adverse impact on the company. Also there is a risk of an increase in NPAs in certain industries if the economy glides back from its recovery path. Exposure to real estate & high client concentration Real estate comprises of 42% mix of total advances and the top 5/10/20 borrowers comprise of 31%/56%/85% of the total corporate book exposure. This leaves Indostar prone to asset quality shocks, in case, any of its large client defaults. Vehicle finance and housing finance business yet to be proven Considering the limited credit history and nature of CV financing business, risk of NPA looms high in this business having high cyclicality. Also, the operational performance of housing finance business needs to be monitored closely owing to the highly competitive landscape. Rising bond yields may increase cost of funds With the interest rate cycle having reversed in recent months and inflation heading higher, bond yields have spiked in recent months. This could lead to an increase in cost of funds and have an adverse impact on NIMs and profitability of Indostar. 7 P a g e
Valuation and Recommendation Indostar has demonstrated strong execution capabilities by initially building the corporate book (~77% of loans) and subsequently entering and successfully executing in SME financing (~23% of loans). Incremental growth is expected to be higher than previous years, driven mainly by CV financing followed by corporate, SME and housing finance. ROA is expected to be maintained in the 3.5-4.0% range going forward; combined with an increase in leverage from less than 3x currently to ~5x, we believe ROE is slated to increase and stabilize at higher levels compared to prior years. Indostar is being offered at trailing (Dec 2017) P/ABV of 1.9x & P/E of 23.8x on post diluted basis, leaving good scope for appreciation for investors and thus we recommend subscribing to the issue. In coming years, Indostar expects the corporate and commercial vehicle segments to form 75-80% of its advances with SME and housing segments forming the balance. We thus compare Indostar with NBFCs having similar exposures. Exhibit 6: Peer Comparison as on FY18 (9MFY18 in case of Indostar) Shriram Transport Cholamandalam Invest. & Fin. L&T Finance Holdings Avg Indostar Loan Book (Rs Cr) 95,306 42,879 75,963 71,383 5,147 Loan CAGR FY15-18 13% 19% 20% 17% 17% Mix Corporate/Wholesale 2% 68% 77% Vehicles 95% 73% 12% 0.3% SME 13% 23% Housing 6% 11% 0.3% Other Retail 5% 6% 9% 0% Spread 5.4% 7.9% 4.1% 5.8% 4.2% NIM 7.7% 9.7% 2.7% 6.7% 6.9% Cost/Income 20.6% 41% 23% 28% 28% GNPA 9.2% 2.9% 5.5% 5.8% 1.7% NNPA 2.8% 1.7% 2.9% 2.5% 1.4% CAR 16.9% 18.4% 15.5% 16.9% 31.6% ROE FY16 12.0% 16.6% 9.8% 12.8% 13.6% ROE FY17 11.6% 18.1% 12.3% 14.0% 12.2% ROE FY18 13.1% 20.8% 15.0% 16.3% 10.9% ROA FY16 1.9% 2.3% 1.6% 1.9% 4.4% ROA FY17 1.8% 2.6% 1.6% 2.0% 4.1% ROA FY18 1.9% 3.0% 1.8% 2.3% 3.8% P/BV Trailing (x) 2.8 4.9 2.7 3.5 1.9 P/ABV Trailing (x) 3.4 5.7 3.1 4.1 1.9 Source: Companies, NBRR 8 P a g e
Financials (in Rs Crs) Profitability (Rs. Crs) FY14 FY15 FY16 FY17 9MFY18 9MFY18-A Balance Sheet (Rs. Crs) FY14 FY15 FY16 FY17 9MFY18 Interest earned 359 465 564 644 515 686 Borrowings 1,898 2,574 3,001 3,373 3,688 Interest expended 192 258 289 312 229 305 Other liab and prov 127 133 151 213 280 Net interest income 168 207 275 332 286 381 Total liab. 2,025 2,706 3,152 3,586 3,968 Non interest income 37 63 80 76 71 95 Equity capital 68 68 73 78 79 Total income 205 270 355 408 357 476 Reserves and surplus 1,067 1,217 1,468 1,824 1,998 Staff costs 25 28 39 48 57 75 Net worth 1,136 1,285 1,542 1,903 2,077 Other Op Exp 9 13 19 25 42 56 Total liab and equity 3,161 3,992 4,693 5,489 6,045 Total Op. exp. 34 41 58 73 98 131 Profit before prov 171 229 297 335 259 345 Cash and bank bal 468 486 360 65 75 Provisions 1 3 3 12 9 11 Investments 61 55 0 187 712 Profit before tax 169 226 293 323 250 333 Advances 2,572 3,375 4,265 5,145 5,147 Taxes 57 77 102 112 86 114 Fixed assets 1 1 4 9 26 Net profit 112 149 192 211 164 219 Other assets 50 67 55 67 67 Growth Ratios FY14 FY15 FY16 FY17 9MFY18 9MFY18-A Deferred Tax Asset 8 9 10 16 18 Advances growth 31% 26% 21% 0% Total assets 3,161 3,992 4,693 5,489 6,045 NII growth 24% 32% 21% 15% PPP growth 34% 29% 13% 3% Key Ratios FY14 FY15 FY16 FY17 9MFY18 PAT growth 33% 29% 10% 4% Yield Ratios Profitability Ratios FY14 FY15 FY16 FY17 9MFY18 9MFY18-A Yield on Advances 14.6% 14.3% 14.5% 13.8% 13.3% Cost / Income Ratio 16.8% 15.2% 16.4% 17.8% 27.6% 27.6% Cost of Borrowings 12.1% 11.8% 11.2% 10.3% 9.1% ROE 10.4% 12.3% 13.6% 12.2% 10.9% 10.9% Spread 2.5% 2.5% 3.3% 3.5% 4.2% ROA 4.2% 4.2% 4.4% 4.1% 3.8% 3.8% NIM 6.6% 6.0% 6.5% 6.8% 6.9% Valuation Ratios FY14 FY15 FY16 FY17 9MFY18 9MFY18-A Balance Sheet Ratios EPS 16.4 21.8 26.1 26.9-27.8 Gross NPA 0.8% 0.6% 0.2% 1.4% 1.7% Post Issue EPS 24.1 Net NPA 0.7% 0.5% 0.2% 1.2% 1.4% BVPS 166 188 210 243 264 270 CAR 41.5% 32.6% 34.2% 33.8% 31.6% Adjusted BVPS 164 185 209 235 255 260 Tier - 1 41.1% 32.3% 33.8% 33.4% 31.3% P/E 34.9 26.2 21.9 21.3-20.6 Post issue P/E 23.8 Tax rate 33.7% 34.1% 34.6% 34.7% 34.3% P/ABV 3.5 3.1 2.7 2.4 2.2 2.2 Number of employees 27 36 74 93 531 Post issue P/ABV 1.9 1.9 Number of branches 3 7 43 Source: Company, NBRR * 9MFY18-A denotes: annualised 9 P a g e
Disclosure: This Report is published by Nirmal Bang Securities Private Limited (hereinafter referred to as NBSPL ) for private circulation. NBSPL is a registered Research Analyst under SEBI (Research Analyst) Regulations, 2014 having Registration no. INH000001766. NBSPL is also a registered Stock Broker with National Stock Exchange of India Limited and BSE Limited in cash and derivatives segments. It is also a registered Portfolio Manager having registration no as INP000002981. NBSPL has other business divisions with independent research teams separated by Chinese walls, and therefore may, at times, have different or contrary views on stocks and markets. NBSPL or its associates have not been debarred / suspended by SEBI or any other regulatory authority for accessing / dealing in securities Market. NBSPL, its associates or analyst or his relatives do not hold any financial interest in the subject company. NBSPL or its associates or Analyst do not have any conflict or material conflict of interest at the time of publication of the research report with the subject company. NBSPL or its associates or Analyst or his relatives hold / do not hold beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of this research report. NBSPL or its associates / analyst has not received any compensation / managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months. NBSPL or its associates have not received any compensation or other benefits from the company covered by Analyst or third party in connection with the research report. Analyst has not served as an officer, director or employee of Subject Company and NBSPL / analyst has not been engaged in market making activity of the subject company. Analyst Certification: I/We Jehan Bhadha, the research analyst and author of this report, hereby certify that the views expressed in this research report accurately reflects my/our personal views about the subject securities, issuers, products, sectors or industries. It is also certified that no part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations or views in this research. The analyst(s) principally responsible for the preparation of this research report and has taken reasonable care to achieve and maintain independence and objectivity in making any recommendations P a g e 10
Disclaimer: This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. NBSPL is not soliciting any action based upon it. Nothing in this research shall be construed as a solicitation to buy or sell any security or product, or to engage in or refrain from engaging in any such transaction. In preparing this research, we did not take into account the investment objectives, financial situation and particular needs of the reader. This research has been prepared for the general use of the clients of NBSPL and must not be copied, either in whole or in part, or distributed or redistributed to any other person in any form. If you are not the intended recipient you must not use or disclose the information in this research in any way. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. NBSPL will not treat recipients as customers by virtue of their receiving this report. This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject NBSPL & its group companies to registration or licensing requirements within such jurisdictions. The report is based on the information obtained from sources believed to be reliable, but we do not make any representation or warranty that it is accurate, complete or up-to-date and it should not be relied upon as such. We accept no obligation to correct or update the information or opinions in it. NBSPL or any of its affiliates or employees 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. NBSPL or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The recipients of this report should rely on their own investigations. This information is subject to change without any prior notice. NBSPL reserves its absolute discretion and right to make or refrain from making modifications and alterations to this statement from time to time. Nevertheless, NBSPL is committed to providing independent and transparent recommendations to its clients and would be happy to provide information in response to specific client queries. Before making an investment decision on the basis of this research, the reader needs to consider, with or without the assistance of an adviser, whether the advice is appropriate in light of their particular investment needs, objectives and financial circumstances. There are risks involved in securities trading. The price of securities can and does fluctuate, and an individual security may even become valueless. International investors are reminded of the additional risks inherent in international investments, such as currency fluctuations and international stock market or economic conditions, which may adversely affect the value of the investment. Opinions expressed are subject to change without any notice. Neither the company nor the director or the employees of NBSPL accept any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of this research and/or further communication in relation to this research. Here it may be noted that neither NBSPL, nor its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profit that may arise from or in connection with the use of the information contained in this report. Copyright of this document vests exclusively with NBSPL. Our reports are also available on our website www.nirmalbang.com. Nirmal Bang Research (Division of Nirmal Bang Securities Pvt. Ltd.) B-2, 301/302, Marathon Innova, Opp. Peninsula Corporate Park, Off Ganpatrao Kadam Marg, Lower Parel (W), Mumbai-400013 Board No. : 91 22 3926 8000/8001 Fax. : 022 3926 8010 P a g e 11