Early festive season boosts volumes

INDIA
La Opala RG
Hold
7 November 2014
Early festive season boosts volumes
We maintain Hold on La Opala RG and believe the rally in the stock price captures
new capacity additions along with steady margin expansion leaving little room for
disappointment. While Q2FY15 results were ahead of expectations, we believe it
will be difficult to maintain these growth levels as the bulk of growth was due to
early festive season compared to last year. While we continue to like the strong
pricing power and healthy balance sheet, valuations at 30.8x FY17E PE leave no
upside for new buyers in the near term.
Net Sales
COGS
Employee Expenses
Admin & Other Exp
EBITDA
EBITDA margin (%)
Depreciation & Amm.
PBT
Tax
Adjusted PAT
Q1FY15
QoQ (%)
Q2FY15E
Var (%)
569
85
66
248
170
29.8
26
148
37
111
398
90
51
144
113
28.2
18
86
27
59
42.9
(5.4)
28.0
72.1
51.0
160 bps
419
86
59
167
107
25.6
19
88
27
61
35.8
(0.7)
11.0
48.7
58.6
429 bps
537
115
66
195
161
29.9
20
141
42
98
6.1
(25.8)
(0.7)
27.4
5.8
(8) bps
72.9
88.1
68.4
81.3
FY13
FY14
FY15E
FY16E
FY17E
Rs310 Diluted Shares O/S(mn)
55.5
Previous Rating
Hold Mkt Cap (Rsbn/USDmn)
23.5/383.1
6M
1Yr
LOG IN
31.6 146.4 278.7
Nifty
4.9
24.5
52 Wk H / L (Rs)
436.3/89.6
5 Year H / L (Rs)
436.3/4.8
Daily Vol. (3M NSE Avg.)
90824
32.0
Shareholding pattern (%)*
Jun-14
Mar-14
Dec-13
Sept-13
68.2
68.2
68.1
68.1
FIIs
5.7
5.5
4.9
3.8
DIIs
2.2
2.2
1.9
1.9
23.9
24.2
25.1
26.2
Promoter
Others
Source: BSE, *as on 5 November 2014
Revenue growth trend
50
42.9
40
31.2
30.3
(%)
30
22.4
19.4
20
13.6
7.3
10
Q2FY15
Q1FY15
Q4FY14
Q3FY14
Q4FY13
0
Source: Company, Centrum Research
Earning Revision
FY15E
FY16E
Particulars
(Rs mn)
New
Old
Old
Chg (%)
Sales
2,342
2,237
4.7
2,956
2,763
7.0
EBITDA
701
689
1.8
908
864
5.1
EBITDA Margin (%)
29.9
30.8
(86) bps
30.7
31.3
(56) bps
PAT-adj.
449
449
0.0
572
557
2.7
Chg (%) New
Source: Centrum Research Estimates
Centrum vs. Bloomberg Consensus*
Particulars
(Rs mn)
FY15E
Centrum
BBG
Sales
FY16E
Var (%) Centrum
BBG
Var (%)
2,342
2,218
5.6
2,956
2,680
10.3
EBITDA
701
651
7.7
908
794
14.4
PAT
449
409
9.9
572
509
12.5
BUY
SELL
HOLD
Target Price
(Rs)
Centrum
Target
Price
(Rs)
3
0
1
292
415
Bloomberg Consensus*
5.2
Variance
(%)
41.9
*as on 5 November 2014; Source: Bloomberg, Centrum Research Estimates
12.7
Source: Company, Centrum Research
Y/E Mar (Rsmn)
55.5
Previous Target
*as on 5 November 2014; Source: Bloomberg, Centrum Research
Maintain Hold: we have increased our revenue estimates factoring in high volume
growth in H1FY15 and further price hikes in FY16. Margins have been reduced
marginally on the back of higher A&P spends. We maintain Hold rating with a revised
target price of Rs415 (30x FY17E EPS; 0.8x FY17 PEG) capturing the upside from the
new capacity where the full benefits would flow in FY17E where as previously we
valued the company at 26x Sep’16. Key upside risks to our estimates are stronger than
expected volume growth and healthy margin expansion while downside risks are
removal of anti-dumping duty and delay in new capacity additions.
YoY (%)
LOG IN
2.1% Curr Shares O/S (mn)
1M
A&P spends to increase and mute margin expansion: While we believe there is little
incremental room for gross margin expansion, packaging cost which accounts for ~7%
of sales can marginally reduce further with the decline in crude prices. Management is
expected to spend ~13% (earlier guidance 11-12%) of revenues on A&P to gain
incremental market share from unorganized segments and invest the margin gains in
the business. With high volume growth and price hikes in FY16E, we expect operating
leverage to help the company expand margins despite high A&P spends.
Q2FY14
Rs424 Bloomberg Code
Price Performance (%)*
Focus on volume growth: Company is focusing on volume growth and has started
to export opalware products to create a base for expected capacity addition from
H2FY16. It is also focusing on e-commerce and has signed contracts with Flipkart
and Amazon which are expected to start from November end at pre-decided
discount pricing. New product designs from Dec’14 and plans to launch premium
designs in square plates from FY16 will further help the company boost volume
growth. Company is also considering the import of Borosilicate products from
Q4FY15 offering a potential of Rs300mn over 3 years.
Q2FY15
Rs415 Key Data
CMP*
Dowinside
Q2FY15 results highlights: La Opala posted healthy 43% YoY growth in revenues
on pre-festive season demand and early festive season compared to last year. Price
hike in the Diva brand further helped in ~4% price growth for the company as Diva
brand contributed 65% of revenues while exports were at 15%. Operating profit was
up 51% at Rs170mn with 160bps margin expansion on the back of gross margin
expansion of 766bps with improvement in plant efficiencies and 100% capacity
utilization. PAT was up by 59% at Rs111mn with healthy revenue growth.
Y/E Mar (Rs mn)
Target Price
Q2FY14
Earning Revision
Q1FY14
Consumer
AAnkit Kedia, ankit.kedia@centrum.co.in; 91 22 4215 9634
Revenue
YoY (%)
EBITDA
EBITDA (%)
Adj. PAT
YoY (%)
EPS (Rs)
RoE (%)
RoCE (%)
PE (x)
EV/EBITDA (x)
1,539
1,779
2,342
2,956
3,768
33.8
15.6
31.7
26.2
27.5
412
500
701
908
1,178
26.8
28.1
29.9
30.7
31.3
229
300
449
572
769
80.2
30.9
49.9
27.5
34.4
4.1
5.4
8.1
10.3
13.9
35.3
34.9
31.3
27.0
28.8
28.7
28.9
28.5
26.1
28.0
103.6
79.1
52.8
41.4
30.8
55.2
45.4
33.0
25.7
19.4
Source: Company, Centrum Research Estimates
Centrum Equity Research is available on Bloomberg, Thomson Reuters and FactSet
Valuation
Exhibit 1: Sensitivity Analysis
Gross Margins (%)
Sensitivity Analysis - FY16E EPS
Volume
Growth
-2%
-1%
Base
1%
2%
-2%
-1%
Base
1%
2%
41.3
42.4
43.5
44.7
45.8
43.1
44.2
45.4
46.5
47.6
44.9
46.1
47.7
48.4
49.5
46.7
47.9
49.1
50.2
51.4
48.5
49.7
50.9
52.1
53.2
Source: Centrum Research Estimates
Exhibit 2: Rolling forward EV/EBITDA chart
Exhibit 3: Rolling forward P/E chart
25
40
20
30
15
20
10
10
5
Mean
Mean - Std Dev
Oct-14
Apr-14
Oct-13
Apr-13
Oct-12
Apr-12
Oct-11
Apr-11
Oct-10
Apr-10
Oct-09
Oct-08
Oct-14
Apr-14
Oct-13
Apr-13
Oct-12
Apr-12
Oct-11
Apr-11
Oct-10
Apr-10
Oct-09
Apr-09
Oct-08
EV/EBITDA
Mean + Std Dev
Apr-09
0
0
P/E
Mean
Mean + Std Dev
Mean - Std Dev
Source: Bloomberg, Company, Centrum Research Estimates
Source: Bloomberg, Company, Centrum Research Estimates
Exhibit 4: Comparative Valuations
Company
Mkt Cap
(Rs mn)
CAGR FY14-FY16E (%)
Rev.
EBITDA Margin (%)
PE (x)
EBITDA
PAT
FY14
FY15E
FY16E
FY14
EV/EBITDA (x)
FY15E FY16E
FY14
FY15E FY16E
RoE (%)
FY14
Div Yield (%)
FY15E FY16E
FY14
FY15E FY16E
LA Opala RG*
23,549 28.97
34.8
38.2
28.1
29.9
30.7
79.1
52.8
41.4
45.4
33.0
25.7
34.9
31.3
27.0
0.2
0.3
0.4
Kajaria Ceramics
44,587
22.8
25.4
32.5
15.3
15.7
16.0
35.3
28.0
21.5
10.3
13.3
10.5
27.9
26.1
26.4
0.6
0.7
0.9
Havells India
180,852
12.0
19.9
26.2
9.6
10.3
11.0
40.5
31.7
25.4
15.0
19.4
16.1
28.7
30.5
30.7
1.0
1.1
1.4
Berger Paints
132,989
17.5
22.2
25.2
11.3
11.8
12.2
53.3
42.8
34.1
19.0
25.7
21.0
24.1
24.7
26.2
0.6
0.7
0.8
VIP Industries
16,174
12.1
28.5
19.3
8.5
9.3
11.2
28.1
27.9
19.6
18.0
16.3
11.9
21.2
19.3
25.2
1.5
1.8
2.5
TTK Prestige
45,333
17.7
22.8
21.9
12.6
12.8
13.7
40.1
35.5
27.2
21.7
22.8
17.7
22.8
20.1
22.1
0.5
0.6
0.8
Page Industries
98,624
27.7
27.1
29.0
21.4
21.1
21.2
64.0
49.3
38.5
29.5
31.4
24.6
61.2
58.4
56.2
0.7
0.9
1.1
Astral Polytechnik
40,474
26.8
25.8
36.7
14.5
13.9
14.3
52.4
39.2
28.1
17.7
21.3
16.5
27.7
25.9
27.9
0.1
0.2
0.4
Bajaj Electricals
28,817
16.3
117.5
NA
2.0
6.3
7.1
(539.8)
22.3
14.5
40.1
10.6
7.9
(0.7)
16.7
21.5
0.5
0.9
1.2
Whirlpool of India
68,035
18.6
30.5
40.8
8.0
9.2
9.7
55.3
35.4
27.9
11.7
20.7
16.5
18.1
22.8
23.1
0.0
0.0
0.0
Relaxo Footwear
31,211
19.4
21.1
28.7
12.2
12.3
12.5
47.5
37.2
28.7
13.3
NA
NA
26.7
25.2
26.8
0.1
0.2
0.2
Symphony
67,571
32.7
37.7
38.1
23.6
24.9
25.5
72.9
49.8
38.3
39.3
30.0
30.0
37.2
42.6
44.4
0.5
1.0
1.1
Source: Bloomberg consensus, *Centrum Broking
2
La Opala RG
Quarterly financials, Operating Metrics and Key Performance Indicators
Exhibit 5: Quarterly Financials
Y/E Mar (Rs mn)
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
Q4FY14
Q1FY15
Q2FY15
Total Income
502
399
322
398
570
489
419
569
COGS
Staff cost
Admin & other expenses
Power
A&P Expenses
Total Expenditure
100
54
58
74
69
356
73
53
61
67
29
283
87
46
39
47
21
240
90
51
42
54
48
286
123
62
57
70
91
403
96
59
77
72
46
351
86
59
70
59
38
312
85
66
68
75
105
399
EBITDA
Depreciation
EBIT
Interest
Other Income
Exceptional Item
PBT
Total tax
Reported PAT
Adj PAT
145
15
131
11
3
0
122
30
93
93
116
14
102
10
1
0
93
30
63
63
82
15
67
10
2
0
60
15
45
45
113
18
95
11
2
0
86
27
59
59
167
19
148
8
5
0
145
34
110
110
138
19
119
4
2
0
117
32
85
85
107
19
88
3
3
0
88
27
61
61
170
26
144
1
5
0
148
37
111
111
71.7
82.5
110.5
31.2
91.7
227.9
19.4
49.3
61.1
7.3
18.4
31.9
13.6
14.9
18.8
22.4
18.6
34.7
30.3
30.6
35.9
42.9
51.0
88.1
80.0
29.0
26.0
18.5
81.8
29.2
25.5
15.9
72.9
25.5
21.0
14.0
77.4
28.2
23.8
14.8
78.5
29.3
26.0
19.4
80.3
28.3
24.4
17.5
79.5
25.6
21.0
14.6
85.0
29.8
25.3
19.5
Growth %
Revenue
EBIDTA
Adj PAT
Margins %
Gross Margin
EBIDTA
EBIT
Adj PAT
Source: Company, Centrum Research
Exhibit 6: Assumptions
Assumptions
Volume Growth %
FY12
FY13
FY14
FY15E
FY16E
FY17E
18.5
30.0
14.0
26.0
24.0
25.0
Source: Company, Centrum Research Estimate
3
La Opala RG
Financials
Exhibit 7: Income Statement
Exhibit 9: Balance Sheet
Y/E March (Rs mn)
FY13
FY14
FY15E
FY16E
FY17E
Y/E March (Rs mn)
Net Sales
Growth (%)
Employee Cost
%of Sales
Material cost
%of Sales
Admin & other expenses
% of sales
EBIDTA
EBIDTA Margins (%)
Depreciation
Interest expenses
PBT for operations
Other income
Exceptional item
PBT
Provision for tax
Effective tax rate (%)
Net Profit
1,539
33.8
189
12.3
327
21.2
612
39.7
412
26.8
56
42
314
10
325
96
29.5
229
1,779
15.6
218
12.2
403
22.7
658
37.0
500
28.1
70
33
397
11
408
108
26.5
300
2,342
31.7
274
11.7
481
20.5
886
37.8
701
29.9
99
8
594
25
619
170
27.5
449
2,956
26.2
337
11.4
631
21.4
1,080
36.5
908
30.7
132
8
767
28
795
223
28.0
572
3,768
27.5
412
10.9
799
21.2
1,379
36.6
1,178
31.3
140
5
1,034
35
1,069
299
28.0
769
Share Capital
Preference Share Capital
Reserves & Surplus
Total Shareholders Funds
Source: Company, Centrum Research Estimates
Exhibit 8: Key Ratios
Y/E March
Growth ratios (%)
Revenues
EBIDTA
Adj Net Profit
Margin ratios (%)
EBIDTA Margins
PBIT Margins
PBT Margins
PAT Margins
Return Ratios (%)
ROCE
RoNW
RoIC
Turnover Ratios (Days)
Inventory period
Collection period
Payment period
Net Working Capital
Solvency Ratio
Debt-equity
Net Debt-equity
Current ratio
Interest coverage ratio
Dividend
Dividend (Rs)
Dividend yield (%)
Dividend Payout (%)
Per Share (Rs)
Basic (end pt) EPS - Rep
FDEPS (Adjusted)
Basic (end pt) EPS - Adj
FDEPS (Reported)
CEPS
Book Value
Valuations (x)
PER
P/BV
EV/EBIDTA
EV/Sales
M-cap/Sales
FY13
FY14
FY15E
FY16E
FY17E
33.8
53.4
80.2
15.6
21.3
30.9
31.7
40.2
49.9
26.2
29.5
27.5
27.5
29.8
34.4
26.8
23.1
21.1
14.9
28.1
24.2
22.9
16.8
29.9
25.7
26.4
19.2
30.7
26.2
26.9
19.4
31.3
27.6
28.4
20.4
28.7
35.3
26.7
28.9
34.9
28.1
28.5
31.3
31.5
26.1
27.0
27.4
28.0
28.8
33.5
73
44
56
70
58
44
34
76
75
45
50
79
100
45
50
103
100
45
50
104
0.3
0.2
1.9
8.5
0.1
0.1
2.9
13.1
0.0
(0.3)
2.4
75.3
0.0
(0.2)
2.8
96.9
0.0
(0.3)
3.5
207.7
0.7
0.2
19.0
1.0
0.2
20.7
1.3
0.3
18.8
1.6
0.4
18.2
2.3
0.5
19.0
4.3
4.1
4.3
4.1
5.4
14.0
5.7
5.4
5.7
5.4
7.0
18.5
8.1
8.1
8.1
8.1
9.9
34.0
10.3
10.3
10.3
10.3
12.7
42.5
13.9
13.9
13.9
13.9
16.4
53.7
103.6
30.5
55.2
14.8
14.7
79.1
23.1
45.4
12.7
12.7
52.8
12.6
33.0
9.9
9.7
41.4
10.1
25.7
7.9
7.7
30.8
8.0
19.4
6.1
6.0
FY13
FY14
FY15E
FY16E
FY17E
106
0
635
741
106
0
872
978
111
0
1,777
1,888
111
0
2,245
2,356
111
0
2,868
2,979
Loan Funds
Capital Reserve on Consolidation
Minority Interest
Deferred Tax Liabilities
Total Capital Employed
208
0
0
75
1,024
142
0
0
94
1,214
0
0
0
94
1,982
0
0
0
94
2,450
0
0
0
94
3,073
Fixed Asset
Gross Block
Less:- Accumulated Depreciation
Net Block
Capital WIP
Total fixed assets
Investments
989
351
639
9
647
75
1,114
383
731
22
753
1
1,314
481
833
50
883
500
1,764
613
1,151
50
1,201
300
1,864
753
1,111
50
1,161
300
Inventory
Debtors
Loans & advances
Other Current Assets
Cash & bank balances
Total current assets
308
186
68
24
8
594
283
215
81
24
91
695
481
289
117
24
95
1,006
810
364
148
24
112
1,458
1,032
465
188
24
543
2,252
292
302
1,024
235
460
1,214
407
599
1,982
508
950
2,450
640
1,613
3,073
FY13
FY14
FY15E
FY16E
FY17E
325
56
66
446
(40)
406
(86)
320
408
70
(16)
462
(75)
387
(90)
297
619
99
(17)
701
(136)
565
(170)
394
795
132
(20)
908
(334)
574
(223)
351
1,069
140
(30)
1,178
(231)
947
(299)
648
(224)
(74)
1
(297)
(138)
74
11
(53)
(228)
(499)
25
(702)
(450)
200
28
(223)
(100)
0
35
(65)
46
(36)
0
(28)
(19)
(66)
(33)
0
(62)
(161)
(142)
(8)
545
(84)
311
0
(8)
0
(104)
(112)
0
(5)
0
(146)
(151)
4
83
3
17
432
Current liabilities and provisions
Net current assets
Mis Expenses
Total
Source: Company, Centrum Research Estimates
Exhibit 10: Cash Flow
Y/E March (Rs mn)
CF from operations
Profit before tax
Depreciation & amortisation
Others
CF before WC changes
Working capital changes
Cash inflow from operations
Income tax paid
Cash from Operations
Cash from investing
Capex
Investments
Others
Cash from investing
Cash from financing
Borrowings/ repayments
Interest paid
Equity/ Share Capital
Dividend & Dividend Tax
Cash from financing
Net change in cash
Source: Company, Centrum Research Estimates
Source: Company, Centrum Research Estimates
4
La Opala RG
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 company’s securities at the time that the research report was published.
This report is for information purposes only and this document/material should not be construed as an offer to sell or the solicitation of an offer to buy,
purchase or subscribe to any securities, and neither this document nor anything contained herein shall form the basis of or be relied upon in connection
with any contract or commitment whatsoever. This document does not solicit any action based on the material contained herein. It is for the general
information of the clients of Centrum. Though disseminated to clients simultaneously, not all clients may receive this report at the same time. Centrum
will not treat recipients as clients by virtue of their receiving this report. It does not constitute a personal recommendation or take into account the
particular investment objectives, financial situations, or needs of individual clients. Similarly, this document does not have regard to the specific
investment objectives, financial situation/circumstances and the particular needs of any specific person who may receive this document. The securities
discussed in this report may not be suitable for all investors. The securities described herein may not be eligible for sale in all jurisdictions or to all
categories of investors. The countries in which the companies mentioned in this report are organized may have restrictions on investments, voting rights
or dealings in securities by nationals of other countries. The appropriateness of a particular investment or strategy will depend on an investor's
individual circumstances and objectives. Persons who may receive this document should consider and independently evaluate whether it is suitable for
his/ her/their particular circumstances and, if necessary, seek professional/financial advice. 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.
These projections and forecasts were not prepared with a view toward compliance with published guidelines or generally accented accounting
principles. No independent accountants have expressed an opinion or any other form of assurance on these projections or forecasts. You should not
regard the inclusion of the projections and forecasts described herein as a representation or warranty by or on behalf of the Company, Centrum, the
authors of this report or any other person that these projections or forecasts or their underlying assumptions will be achieved. For these reasons, you
should only consider the projections and forecasts described in this report after carefully evaluating all of the information in this report, including the
assumptions underlying such projections and forecasts.
The price and value of the investments referred to in this document/material and the income from them may go down as well as up, and investors may
realize losses on any investments. Past performance is not a guide for future performance. Future returns are not guaranteed and a loss of original capital
may occur. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to
change without notice. Centrum does not provide tax advice to its clients, and all investors are strongly advised to consult regarding any potential
investment. Centrum and its affiliates accept no liabilities for any loss or damage of any kind arising out of the use of this report. Foreign currencies
denominated securities are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of or income derived from
the investment. In addition, investors in securities such as ADRs, the value of which are influenced by foreign currencies effectively assume currency risk.
Certain transactions including those involving futures, options, and other derivatives as well as non-investment-grade securities give rise to substantial
risk and are not suitable for all investors. Please ensure that you have read and understood the current risk disclosure documents before entering into any
derivative transactions.
This report/document has been prepared by Centrum, based upon information available to the public and sources, believed to be reliable. No
representation or warranty, express or implied is made that it is accurate or complete. Centrum has reviewed the report and, in so far as it includes
current or historical information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The opinions expressed in
this document/material are subject to change without notice and have no obligation to tell you when opinions or information in this report change.
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
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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. Ankit Kedia, 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:
Tel: (022) 4215 9413; Email ID: compliance@centrum.co.in
Centrum Broking Limited
Registered Office Address
Bombay Mutual Building ,
Correspondence Address
Centrum House
2nd Floor,
Dr. D. N. Road,
Fort, Mumbai - 400 001
6th Floor, CST Road, Near Vidya Nagari Marg, Kalina,
Santacruz (E), Mumbai 400 098.
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Tel: (022) 4215 9000
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