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INDIA Automobiles

Swaraj Engines
Result Update 4 February 2014
Target Price CMP* Rs800 Key Data Rs601 Bloomberg Code 33% Curr Shares O/S (mn) Rs810 Diluted Shares O/S(mn) Buy Mkt Cap (Rsbn/USDmn) 52 Wk H / L (Rs) 1Yr 32.2 (0.7) 5 Year H / L (Rs) Daily Vol. (3M NSE Avg.)

Buy

Capacity addition encouraging; Maintain Buy


We continue to retain Buy on the stock with revised TP of Rs800. It is encouraging to note that the company has announced an increase in overall annual capacity to 105,000 units from current 75,000 units, a 40% increase at overall capex of Rs380mn over the next 12-18months. Though we expected capacity addition, the capex requirement per unit was significantly lower (almost half) than our estimates and will effectively lead to better than expected cash flows in FY16E. Interaction with tractor dealers, financiers and recent data point to agriculture/tractor sector continuing to show strength in the overall tractor industry. Capacity addition positive, surprisingly at half the expected capex: The Company has announced an increase of capacity to 105,000 units from current 75,000 units, a 40% increase at a capex of Rs380mn over the next 12-18months. Though we expected the capacity addition, the capex requirement per unit was significantly lower (almost half) than our estimates and will lead to better than expected cash flows in FY16E. We had assumed a capex per unit of Rs23,000 (in line with capex incurred in the past), but, the capex requirement announced for new capacity addition implies a capex per unit at Rs.12,700. This will effectively mean operating break-even of little over one year considering EBITDA/unit at Rs12,200 (YTDFY14). Market checks suggest underlying drivers for tractor demand intact: Our interaction with tractor dealers, financiers and recent data related to agriculture/tractor sector largely validate our view on tractor industry and make us believe that factors such as increasing use for non-farm (commercial) purposes, shortening of replacement cycle, rising rural income and shortage of labour will continue to support volume growth. Further, the current penetration level for tractors in India is much lower than in developed and other emerging economies. Hence, we expect the industry to grow at ~10-12% over FY15E-FY16E, in line with growth in FY10-13 (higher than the growth in the last decade). Operating performance disappoints: Overall 3QFY14 results were lower than our expectations with revenues/EBITDA/adjusted PAT lower by 14%/18%/17% respectively. EBITDA margin stood at 14.6% registering a YoY/QoQ drop 24bps/43bps respectively. While we were expecting the share of Swaraj Engines in Swaraj Brand of tractors at 82% (lower than 1HFY14 average of 85%), our back of envelope calculation suggests that this stood at 71-72% during the quarter leading to revenue miss. Valuations and risks: We continue to value the company at 11x FY16E EPS (mean+sd1) as we believe that strong earnings, return ratios and the ability to generate free cash flow with strong FCF yield at 6% (average for past 5 years) can lead to further re-rating of the stock. We retain Buy with target price of Rs800. Key risks to our thesis are: a) Dependence on a single customer i.e. Swaraj brand, and b) Drought in the forecasted period.
Y/E Mar (Rs mn) Net sales Operating profit OPM (%) Dep.& amortisation Interest EBT Other income PBT Provision for tax PAT ( Adjusted) PAT (Reported) Source: Company, Centrum Research Q3FY14 1,502 218 14.5 22 196 42 237 74 163 156 Q3FY13 1,246 184 14.8 21 1 162 36 198 60 138 138 YoY (%) 20.6 18.6 (24 bps) 5.7 21.1 20.0 Q2FY14 1,516 227 14.9 22 0 204 46 250 79 172 172 QoQ (%) (0.9) (3.8) (43 bps) 0.9 (4.3) (5.3) Q3FY14E 1,746 265 15.2 23 0 242 46 288 90 198 198 Var. (%) (14.0) (17.8) (68 bps) (2.6) (19.2) (17.7) (17.3) (21.3)

SWE IN 12.4 12.4 7.5/119 672/365.8 672/77.8 9021.9

Upside Previous Target Previous Rating Price Performance (%)* 1M SWE IN NIFTY (6.2) (4.3) 6M 25.7 4.7

*as on 03 February 2014; Source: Bloomberg, Centrum Research

Shareholding pattern (%)


Dec-13 Promoter FIIs Dom. Inst. Public & Others Source: BSE 50.6 1.9 10.6 36.9 Sep-13 50.6 1.9 10.4 37.0 Jun-13 50.6 1.5 10.6 37.4 Mar-13 50.6 1.5 10.9 37.0

Trend in EBITDA and EBITDA margin


250 200
(Rs mn)

17 16 15
(%)

150 100 50 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14

14 13

EBITDA

EBITDA margin (RHS)

Source: Company, Centrum Research

Earning Revision
Particulars (Rs mn) Sales EBITDA EBITDA Margin (%) PAT FY14E New 5,822 869 14.9 654 Old 5,905 899 15.2 675 Chg (%) (1.4) (3.4) (30 bp) (3.1) New 6,707 1,020 15.2 769 FY15E Old 6,803 1,047 15.4 788 Chg (%) (1.4) (2.6) (18 bp) (2.4)

Source: Centrum Research Estimates

Centrum vs. Bloomberg Consensus*


Particulars (Rs mn) Sales EBITDA PAT FY14E Centrum 5,822 869 654 BBG 5,856 906 664 Var (%) Centrum (0.6) (4.0) (1.5) 6,707 1,020 769 FY15E BBG 6,509 1,021 758 Var(%) 3.0 (0.1) 1.5

*as on 19 October2 013; Bloomberg Consensus


BUY 8 SELL 0 HOLD 1 Target Price (Rs) 707

Centrum Target Price (Rs) 800

Variance (%)

13.1

13.0

(9.4)

*as on 03 February 2014; Source: Bloomberg, Centrum Research

Ajay Shethiya, ajay.shethiya@centrum.co.in; 91 22 4215 9855

Y/E Mar (Rs mn) FY12 FY13 FY14E FY15E FY16E

Revenue 4,486 4,790 5,822 6,707 7,728

YoY (%) 24.4 6.8 21.5 15.2 15.2

EBITDA 697 714 869 1,020 1,187

EBITDA (%) 15.5 14.9 14.9 15.2 15.4

Adj. PAT 532 554 654 769 905

YoY (%) Adj. EPS (Rs) 21.1 4.1 18.1 17.6 17.6 42.8 44.6 52.7 61.9 72.8

RoE (%) 31.4 29.1 30.4 29.5 28.7

RoCE (%) 31.5 29.2 30.5 29.5 28.7

PE (x) 14.0 13.5 11.4 9.7 8.2

EV/EBITDA (x) 9.7 9.3 7.6 6.4 5.0

Source: Company, Centrum Research Estimates

Centrum Equity Research is available on Bloomberg, Thomson Reuters and FactSet

Valuation and Recommendations


We have valued the company at 11x FY16E EPS (mean+sd1) as we believe that strong earnings, return ratios and the ability to generate free cash flow with strong FCF yield at 6% ( average for past 5 years) can lead to further re-rating of the stock. We retain Buy with target price of Rs800. Key risks to our thesis are: a) Dependence on a single customer i.e. Swaraj brand, and b) Drought in the forecasted period. We are revising earnings estimates downwards for FY14E and FY15E to factor in lower than expected operating performance for 3QFY14 and continued pressure on the net realizations. While, we continue to maintain our volume assumptions for FY14E and FY15E, we revise our revenues lower by 1.4% each for FY14E and FY15E to factor in pressure on realizations on YTDFY14 basis. Exhibit 1: Sensitivity Analysis: FY15E
Sensitivity to key variables Change in volumes Change in realizations Source: Company, Centrum Research Estimates % change 5% 3% % impact on EBITDA margin 20bps 20bps % impact on EPS 4 4

Exhibit 2: 1 year forward EV/EBITDA chart


15 10 5 0

Exhibit 3: 1 year forward P/E chart


24 16 8 0

May-08

Sep-08

May-09

Sep-09

May-10

Sep-10

May-11

Sep-11

May-12

Sep-12

May-13

Sep-13

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

May-08

Sep-08

May-09

Sep-09

May-10

Sep-10

May-11

Sep-11

May-12

Sep-12

May-13

Sep-13
2.6 2.7 3.0

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

EV/EBITDA Mean + Std Dev

Mean Mean - Std Dev

P/E Mean + Std Dev

Mean Mean - Std Dev

Source: Bloomberg, Company, Centrum Research Estimates

Source: Bloomberg, Company, Centrum Research Estimates

Exhibit 4: Comparative Valuations


Company Swaraj Engines Kirloskar Oil Engines* Greaves Cotton* Mkt Cap (Rs mn) 7,464 23,138 14,933 CAGR FY13-FY15E (%) Rev. 18.3 2.1 7.7 EBITDA 19.5 (4.1) 9.2 PAT 17.9 2.0 9.7 EBITDA Margin (%) FY13 14.9 15.1 12.6 FY14E 15.2 12.7 12.4 FY15E 15.4 13.3 13.0 FY13 13.5 11.7 10.1 PE (x) FY14E FY15E 11.4 13.0 10.1 9.7 11.2 8.4 EV/EBITDA (x) FY13 9.3 5.7 6.1 FY14E FY15E 7.6 5.7 6.4 4.6 FY13 29.1 18.2 21.7 RoE (%) FY14E FY15E 30.4 14.6 18.8 29.5 15.5 19.9 Div Yield (%) FY13 5.5 3.1 2.6 FY14E FY15E 3.1 2.9 3.5

Source: Companies, Centrum Research Estimates, * - Bloomberg estimates

Swaraj Engines

Jan-14

Quarterly financials, Operating Metrics and Key Performance Indicators


Exhibit 5: Quarterly Financials
Y/E March (Rs mn) Net Sales Raw Materials Employee Costs Other Expenditure EBITDA Depreciation Interest Other Income PBT Tax Tax rate (%) Extra-ordinary item ( tax adjusted) Reported PAT Adjusted PAT YoY Growth (%) Revenue EBITDA PAT Margin (%) EBITDA PAT Key Drivers Engines sold ( in units) Per Engine basis (Rs.) Average Export Realizations (Rs/Vehicle) Raw material costs (Rs/Vehicle) Other Expenditure (Rs/Vehicle) Employee costs (Rs/vehicle) EBITDA (Rs/Vehicle) Source: Company, Centrum Research 82,941 62,435 3,468 4,295 12,743 84,316 64,707 3,761 2,983 12,866 84,620 63,959 3,829 3,871 12,961 81,482 62,193 3,787 3,480 12,023 83,691 63,284 4,063 4,340 12,005 82,753 63,353 3,475 3,492 12,433 82,006 61,734 3,679 4,333 12,259 81,047 61,910 3,815 3,556 11,765 14,274 14,014 14,389 15,288 13,686 17,783 18,484 18,530 15.4 11.3 15.3 11.6 15.3 11.5 14.8 11.0 14.3 12.2 15.0 11.4 14.9 11.3 14.5 10.9 21.5 22.4 21.2 7.6 1.2 1.2 17.7 22.4 18.8 6.6 1.4 (2.3) (3.3) (9.7) 3.9 24.5 22.6 22.8 24.5 21.5 22.6 20.6 18.6 18.7 Q4FY12 1,184 891 50 61 182 13 34 203 68 29.2 134 134 Q1FY13 1,182 907 53 42 180 14 0 31 197 60 30.2 137 137 Q2FY13 1,218 920 55 56 187 14 0 29 201 61 31.2 140 140 Q3FY13 1,246 951 58 53 184 21 1 36 198 60 32.2 138 138 Q4FY13 1,145 866 56 59 164 22 0 58 199 60 33.2 139 139 Q1FY14 1,472 1,127 62 62 221 21 0 47 247 79 34.2 168 168 Q2FY14 1,516 1,141 68 80 227 22 0 46 250 79 35.2 172 172 Q3FY14 1,502 1,147 71 66 218 22 42 237 74 36.2 (7.9) 156 163

Exhibit 6: Key Performance Indicators


Key Variable Engine Sales ( in units) Engine Realization ( Rs) Engine Revenues ( Rsmn) Component Revenues (Rsmn) Total (Rsmn) Other operating Income* (Rsmn) Total Operating income ( Rsmn) YoY Change (%) Engine Sales Engine Realization Total Operating income FY12 55,239 75,023 4,144 231 4,375 111 4,486 FY13 57,377 78,481 4,503 154 4,657 134 4,790 FY14E 71,147 77,304 5,500 161 5,661 160 5,822 FY15E 79,685 79,623 6,345 170 6,514 192 6,707 FY16E 89,247 82,012 7,319 178 7,497 231 7,728

16.5 7.8 24.4

3.9 4.6 6.8

24.0 (1.5) 21.5

12.0 3.0 15.2

12.0 3.0 15.2

Source: Centrum Research Estimates, * - Other operating income pertain to spare part sales

Swaraj Engines

Financials
Exhibit 7: Income Statement
Y/E March (Rsmn) Net Sales Raw Materials % of sales Personnel % of sales Manufact. & Other Exp. % of sales EBITDA EBITDA Margin (%) Depn..& Amortn EBIT Interest Expenses EBT Other Income PBT Tax-Total Tax Rate (%) - Total Reported PAT FY12 4,486 3,478 77.5 192 4.3 118 2.6 697 15.5 43 655 1 654 122 776 245 31.5 532 FY13 4,790 3,722 77.7 221 4.6 133 2.8 714 14.9 72 643 2 641 153 795 241 30.3 554 FY14E 5,822 4,548 78.1 261 4.5 144 2.5 869 14.9 82 787 1 786 176 962 308 32.0 654 FY15E 6,707 5,224 77.9 300 4.5 162 2.4 1,020 15.2 90 930 1 929 203 1,131 362 32.0 769 FY16E 7,728 6,012 77.8 345 4.5 183 2.4 1,187 15.4 109 1,078 1 1,077 253 1,331 426 32.0 905

Exhibit 9: Balance Sheet


Y/E March (Rsmn) Sources of funds Capital Reserves & Surplus Shareholders Funds Total Loan Funds Deferred Tax Liabi. - Net Total Application of funds Gross Block Accumulated Dep. Capital WIP Net Fixed Assets Investments Inventories Sundry Debtors Cash & Bank Balances Loans and Advances Total C A ,loans & Adv. Current Liabilities Provisions Total Current Liab. & Prov. Net Current Assets Miscellaneous Expend. Total assets FY12 124 1,739 1,863 0 32 1,895 960 (542) 87 505 811 334 119 697 167 1,317 525 214 739 578 1,895 FY13 124 1,813 1,937 0 63 2,001 1,415 (608) 25 832 742 393 93 807 143 1,436 500 508 1,008 427 2,001 FY14E 124 2,238 2,362 0 63 2,425 1,565 (690) 25 900 742 484 125 844 196 1,649 538 327 865 784 2,425 FY15E 124 2,737 2,861 0 63 2,924 1,715 (780) 405 1,340 742 557 145 946 226 1,874 654 377 1,031 843 2,924 FY16E 124 3,324 3,448 0 63 3,512 2,245 (889) 25 1,381 742 642 167 1,508 260 2,577 754 434 1,188 1,389 3,512

Source: Company, Centrum Research Estimates

Exhibit 8: Key Ratios


Y/E March Growth ratios (%) Net sales EBITDA Adjusted Net Profit Margin Ratio (%) EBITDA Margin EBIT Margin PAT Margin Return Ratio (%) ROE ROcE ROIC Turnover Ratio days (days) Inventory Period Debtors Period Net working capital Solvency Ratio (x) Debt-equity Net Debt-equity Liquidity ratio Interest coverage ratio Dividend Dividend per share Dividend Payout (%) Dividend Yield (%) Per share (Rs) Basic EPS - reported Basic EPS - adjusted FDEPS - Reported FDEPS - Adjusted CEPS Book value Valuation P/E P/BV EV/EBITDA EV/Sales Mcap/Sales FY12 24.4 14.9 21.1 15.5 14.6 11.9 31.4 31.5 37.4 24.6 8.8 (8.7) (0.4) 1.8 861.5 13.0 30.4 2.2 42.8 42.8 42.8 42.8 46.3 150.0 14.0 4.0 9.7 1.5 1.7 FY13 6.8 2.5 4.1 14.9 13.4 11.6 29.1 29.2 37.5 26.7 6.3 (25.8) (0.4) 1.4 427.7 33.0 74.0 5.5 44.6 44.6 44.6 44.6 50.3 156.0 13.5 3.9 9.3 1.4 1.6 FY14E 21.5 21.6 18.1 14.9 13.5 11.2 30.4 30.5 33.8 27.0 7.0 (3.3) (0.4) 1.9 786.7 15.8 30.0 2.6 52.7 52.7 52.7 52.7 59.3 190.2 11.4 3.2 7.6 1.1 1.3 FY15E 15.2 17.4 17.6 15.2 13.9 11.5 29.5 29.5 32.0 27.0 7.0 (5.0) (0.3) 1.8 929.6 18.6 30.0 3.1 61.9 61.9 61.9 61.9 69.2 230.4 9.7 2.6 6.4 1.0 1.1 FY16E 15.2 16.4 17.6 15.4 14.0 11.7 28.7 28.7 36.6 27.0 7.0 (5.0) (0.4) 2.2 1,078.3 21.9 30.0 3.6 72.8 72.8 72.8 72.8 81.6 277.6 8.2 2.2 5.0 0.8 1.0

Source: Company, Centrum Research Estimates

Exhibit 10: Cash Flow


Y/E March (Rsmn) Pre-tax profit Total tax paid Depreciation Chg in debtors Chg in inventory Chg in loans & advances Chg in provisions Chg in other current liabilities Net chg in working capital Cash flow from operating activities (a) Capital expenditure Chg in Trade investments Cash flow from investing activities (b) Dividend (incl. tax) Other financing activities Cash flow from financing activities (c) Net chg in cash (a+b+c) FY12 776 (232) 43 (39) 17 (83) 47 113 56 643 (284) (233) (517) (188) (4) (192) (65) FY13 795 (210) 72 27 (59) 24 295 (25) 261 918 (398) 70 (328) (480) (480) 110 FY14E 962 (308) 82 (33) (90) (54) (181) 38 (320) 416 (150) (150) (230) (230) 36 FY15E 1,131 (362) 90 (19) (74) (30) 50 116 43 903 (530) (530) (270) (270) 103 FY16E 1,331 (426) 109 (22) (85) (34) 57 99 15 1,029 (150) (150) (318) (318) 562

Source: Company, Centrum Research Estimates

Source: Company, Centrum Research Estimates

Swaraj Engines

Appendix A
Disclaimer
Centrum Broking Limited (Centrum) is a full-service, Stock Broking Company and a member of The Stock Exchange, Mumbai (BSE) and National Stock Exchange of India Ltd. (NSE). Our holding company, Centrum Capital Ltd, is an investment banker and an underwriter of securities. As a group Centrum has Investment Banking, Advisory and other business relationships with a significant percentage of the companies covered by our Research Group. Our research professionals provide important inputs into the Group's Investment Banking and other business selection processes. Recipients of this report should assume that our Group is seeking or may seek or will seek Investment Banking, advisory, project finance or other businesses and may receive commission, brokerage, fees or other compensation from the company or companies that are the subject of this material/report. Our Company and Group companies and their officers, directors and employees, including the analysts and others involved in the preparation or issuance of this material and their dependants, may on the date of this report or from, time to time have "long" or "short" positions in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. Centrum or its affiliates do not own 1% or more in the equity of this company Our sales people, dealers, traders and other professionals may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make investment decisions that are inconsistent with the recommendations expressed herein. We may have earlier issued or may issue in future reports on the companies covered herein with recommendations/ information inconsistent or different those made in this report. In reviewing this document, you should be aware that any or all of the foregoing, among other things, may give rise to or potential conflicts of interest. We and our Group may rely on information barriers, such as "Chinese Walls" to control the flow of information contained in one or more areas within us, or other areas, units, groups or affiliates of Centrum. Centrum or its affiliates do not make a market in the security of the company for which this report or any report was written. Further, Centrum or its affiliates did not make a market in the subject companys securities at the time that the research report was published. 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Any such person shall be responsible for conducting his/her/their own investigation and analysis of the information contained or referred to in this document and of evaluating the merits and risks involved in the securities forming the subject matter of this document. The projections and forecasts described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections and forecasts were based will not materialize or will vary significantly from actual results, and such variances will likely increase over time. All projections and forecasts described in this report have been prepared solely by the authors of this report independently of the Company. 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This report or recommendations or information contained herein do/does not constitute or purport to constitute investment advice in publicly accessible media and should not be reproduced, transmitted or published by the recipient. The report is for the use and consumption of the recipient only. This publication may not be distributed to the public used by the public media without the express written consent of Centrum. This report or any portion hereof may not be printed, sold or distributed without the written consent of Centrum. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Neither Centrum 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 profits that may arise from or in connection with the use of the information. This document does not constitute an offer or invitation to subscribe for or purchase or deal in any securities and neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever. This document is strictly confidential and is being furnished to you solely for your information, may not be distributed to the press or other media and may not be reproduced or redistributed to any other person. The distribution of this report in other jurisdictions may be restricted by law and persons into whose possession this report comes should inform themselves

Swaraj Engines

about, and observe any such restrictions. By accepting this report, you agree to be bound by the fore going limitations. No representation is made that this report is accurate or complete. The opinions and projections expressed herein are entirely those of the author and are given as part of the normal research activity of Centrum Broking and are given as of this date and are subject to change without notice. Any opinion estimate or projection herein constitutes a view as of the date of this report and there can be no assurance that future results or events will be consistent with any such opinions, estimate or projection. This document has not been prepared by or in conjunction with or on behalf of or at the instigation of, or by arrangement with the company or any of its directors or any other person. Information in this document must not be relied upon as having been authorized or approved by the company or its directors or any other person. Any opinions and projections contained herein are entirely those of the authors. None of the company or its directors or any other person accepts any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection therewith. Centrum and its affiliates have not managed or co-managed a public offering for the subject company in the preceding twelve months. Centrum and affiliates have not received compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for service in respect of public offerings, corporate finance, debt restructuring, investment banking or other advisory services in a merger/acquisition or some other sort of specific transaction. As per the declarations given by them, Mr. Ajay Shethiya, research analyst and and/or any of his family members do not serve as an officer, director or any way connected to the company/companies mentioned in this report. Further, as declared by him, he has not received any compensation from the above companies in the preceding twelve months. He does not hold any shares by him or through his relatives or in case if holds the shares then will not to do any transactions in the said scrip for 30 days from the date of release such report. Our entire research professionals are our employees and are paid a salary. They do not have any other material conflict of interest of the research analyst or member of which the research analyst knows of has reason to know at the time of publication of the research report or at the time of the public appearance. While we would endeavour to update the information herein on a reasonable basis, Centrum, its associated companies, their directors and employees are under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent Centrum from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or Centrum policies, in circumstances where Centrum is acting in an advisory capacity to this company, or any certain other circumstances. This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Centrum Broking Limited or its group companies to any registration or licensing requirement within such jurisdiction. Specifically, this document does not constitute an offer to or solicitation to any U.S. person for the purchase or sale of any financial instrument or as an official confirmation of any transaction to any U.S. person unless otherwise stated, this message should not be construed as official confirmation of any transaction. No part of this document may be distributed in Canada or used by private customers in United Kingdom. The information contained herein is not intended for publication or distribution or circulation in any manner whatsoever and any unauthorized reading, dissemination, distribution or copying of this communication is prohibited unless otherwise expressly authorized. Please ensure that you have read Risk Disclosure Document for Capital Market and Derivatives Segments as prescribed by Securities and Exchange Board of India before investing in Indian Securities Market. Rating Criteria

Rating Buy Hold Sell

Market cap < Rs20bn Upside > 25% Upside between -25% to +25% Downside > 25%

Market cap > Rs20bn but < 100bn Upside > 20% Upside between -20% to +20% Downside > 20%

Market cap > Rs100bn Upside > 15% Upside between -15% to +15% Downside > 15%

Member (NSE, BSE, MCX-SX), Depository Participant (CDSL) and SEBI registered Portfolio Manager Registration Nos. CAPITAL MARKET SEBI REGN. NO.: BSE: INB011454239, NSE: INB231454233 DERIVATIVES SEBI REGN. NO.: NSE: INF231454233 (TRADING & SELF CLEARING MEMBER) CDSL DP ID: 12200. SEBI REGISTRATION NO.: IN-DP-CDSL-661-2012 PMS REGISTRATION NO.: INP000004383 MCX SX (Currency Derivative segment) REGN. NO.: INE261454230 Website: www.centrum.co.in Investor Grievance Email ID: investor.grievances@centrum.co.in Compliance Officer Details: Mr. Ashok Devarajan; Tel: (022) 4215 9000; Email ID: compliance@centrum.co.in

Centrum Broking Limited


Registered Office Address Bombay Mutual Building , 2nd Floor, Dr. D. N. Road, Fort, Mumbai - 400 001 Correspondence Address Centrum House 6th Floor, CST Road, Near Vidya Nagari Marg, Kalina, Santacruz (E), Mumbai 400 098. Tel: (022) 4215 9000

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