Post on 05-Jun-2018
PCG RESEARCH INVESTMENT IDEA 31 MARCH 2017
MULTI COMMODITY EXCHANGE (MCX) (
Private Client Group - PCG RESEARCH P a g e | 1
Industry CMP Recommendation BUY on Dips to band Target Time Horizon
EXCHANGES Rs. 1204 BUY on declines Rs. 1150 - 1080 Rs. 1505 1 Year
HDFC Scrip Code MCXLTDEQNR
BSE Code 534091
NSE Code MCX
Bloomberg MCX
CMP as on 31 Mar 17 1204
Equity Capital (Rs mn)
510
Face Value (Rs) 10
Equity O/S (mn) 51
Market Cap (Rs mn) 61382
Book Value (Rs) 257
Avg. 52 Week Volumes
411813
52 Week High 1420
52 Week Low 814
Shareholding Pattern (%)
Promoters 15.0
Institutions 46.2
Non Institutions 39.8
Total 100.0
PCG Risk Rating* Red * Refer Rating explanation
Devarsh Vakil devarsh.vakil@hdfcsec.com
Multi Commodity Exchange of India (MCX) is engaged in Facilitating Trading, and Clearing and Settlement of
Commodity Derivatives. It operates as a commodity futures exchange. It offers its products in various
segments, such as Bullion, including Gold, Gold Mini, Gold Petal and Silver; Base Metals, including, Aluminum,
Copper, Lead, Nickel and Zinc; Energy, including Crude Oil, Brent Crude Oil and Natural Gas, and Agro
Commodities, including Cardamom, Cotton, Crude Palm Oil, Kapas and Mentha Oil. Its MCXCOMDEX is a real-
time commodity index based on commodity futures price of an exchange. Other commodity indices developed
by the Company include MCXAgri, MCXEnergy and MCXMetal. Its online trading platform is accessible to its
members through its trader workstation or computer-to-computer link (CTCL) using multiple connectivity
media, including point of presence (POP) connectivity, very small aperture terminal (VSATs) and the Internet.
Investment Rationale:
SEBI on its 1st anniversary as a regulator, allowed options trading in the commodity derivative segment. It
was a keenly discussed, awaited and a critical reform required to drive overall commodity derivative market
development. Options will help in attracting more hedgers and retail clients; bring more liquidity and depth in
the market.
The circular states that exchanges that are willing to start options trading could do so but after taking
approval from the regulator. However the circular has not mentioned (1) commodities that have been
allowed, (2) date for commencement of trading and (3) the pricing mechanism. SEBI said that detailed
guidelines will be issued in relation to this, shortly.
We expect options to start trading by Q4 FY18E and initially option contracts will commence trading in highly
liquid commodities like Crude, gold and silver. Currently Bullions and Energy constitute for ~70% of total
turnover.
Globally, option contracts constitute ~42% of the total contracts traded (both equities and commodities). If
we consider only commodities derivative market, options constitute only ~6% of the total traded volume.
This low contribution of options to overall volume is primarily because options are not traded in China. Dalian
commodity exchange (China), The Shanghai Futures (China) and CME group account for ~70% of the total
traded volume globally for commodities.
The Multi Commodities Exchange (MCX) has set its sights on strengthening its position in the agri
commodities segment and consolidating its presence in the non-agri segment.
PCG RESEARCH
Private Client Group - PCG RESEARCH P a g e | 2
It has plans to introduce many products that are not available for derivatives trading so far. The
products include robusta coffee, whose exports are rising. The MCX found a large number of people
interested in hedging the crop or consumers and exporters looking for hedging coffee procurement
price risks with the expansion of retail coffee chains.
The exchange is said to be exploring futures in tea but the issue is that there are several varieties and
grades and standardising contracts is not so easy. So, the move is likely to boost further MCX’s
positioning in terms of revenues and profitability.
As far as Non-Agri is concerned, company intends to consolidate its position with contracts in precious
metals and bullion, deliverable contracts in base metals and some more in the energy sector, all aimed
at increasing connectivity with the physical markets in metals & energy.
Multiple Positive Triggers to drive revenues and PAT
We expect options trading in commodities to start by Q1 FY18E
We have incorporated options volumes in our ADTV (Average Daily Trading Volume) estimates
and have assumed options ADTV to be ~50% of current futures turnover in 4QFY17E and will
gradually increase to ~75% by FY18E.
Total ADTV is expected to increase by 33/71% to Rs 292/500bn in FY17/18E respectively. We
have assumed ADTV to reach the pre-CTT level by FY18E and can cross that significantly in
subsequent years.
The realisation from options is only ~20% of futures realisation as the transaction charges in
options is levied on the premium turnover which is only ~2-3% of notional turnover.
We assume that options trading will boost ADTV by 11/43% while realisation will be impacted by
-9%/-34% in FY17/18E respectively.
Due to lower options realisation the blended realisations to fall 20.5% in FY18E offset by hike in
transaction charges.
This ADTV assumption isn’t contingent on successful forays of the company in any new
commodity areas, which can pose upside risks to our assumptions.
PCG RESEARCH
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MCX signed MoU with Singapore Diamond Exchange
In Feb 2017, Multi Commodity Exchange of India (MCX) and Singapore Diamond Investment Exchange
(SDiX), the world’s first and only commodity exchange trading in physically settled diamonds, have signed a
Memorandum of Understanding (MoU) for establishing areas of cooperation between the two exchanges. The
MoU is intended to facilitate cooperation between the two exchanges in areas such as knowledge sharing and
research, standardization of the product for Indian markets and enhancing transparency in pricing, as well as
to explore areas for further collaboration between the exchanges.
MCX Version 2.0; Recommend BUY with TP of Rs 1505
We expect MCX to post robust 41% EBITDA CAGR driven by revenue CAGR of 25% and EBITDA margin
expansion (48% in FY19E vs. 32.6% in FY16) over FY16-19E. Considering the asset-light nature of the
business, we expect RoE to expand to 15% in FY19E vs. 9.0% in FY16.
MCX had a decent run up after the hike in transaction charges and regulatory approvals (options trading).
MCX currently trades at 46.5x FY17E and 35.2x FY18E EPS. We still see significant value in MCX considering
its (1) Strong business franchise, (2) Recent top-level management rationalisation, (3) Favorable regulatory
environment and (4) Long term growth prospects. Since, Stock has run up a lot, we recommend investors to
BUY on MCX on declines to Rs 1080-1150 with target price of Rs 1505 implying a P/E of 38x FY19E EPS.
Key Risks
Competition from other exchanges (universal exchange)
Regulatory delays
Higher regulatory risks due to speculative nature of trades: i) Delay in implementation of proposed
policy measures; ii) Ban on trading in certain commodities; iii) Revision in open position limits, higher
margin requirement, CTT imposition etc.
Significant dependence on a few commodities: Top four commodities—gold, silver, crude oil and
copper—accounted for more than 85% of total volumes on MCX
Long‐term pricing pressure likely in commodities futures
PCG RESEARCH
Private Client Group - PCG RESEARCH P a g e | 4
Financial Summary (Standalone) Year Ending March (Rs
mn) Q3FY17 Q3FY16 YoY (%) Q2FY17 QoQ (%) FY15 FY16 FY17E FY18E FY19E
Net Revenues 686 570 20.4 652 5.1 2,225 2,349 2,832 3,556 4,478
EBITDA 193 205 -6.2 252 -23.5 876 767 930 1,528 2,147
APAT 339 236 43.9 376 -9.9 1,251 1,085 1,418 1,624 2,021
Diluted EPS (Rs) 6.7 4.6 43.9 7.4 -9.9 24.6 21.3 27.8 31.8 39.6
P/B (x) 5.1 5.1 4.8 4.6 4.2
P/E (x) 48.8 56.5 43.2 37.7 30.3
EV / EBITDA (x) 55.1 65.6 53.4 33.4 23.3
RoE (%) 10.7 9.0 11.5 12.4 14.5
Source: Company, HDFC sec Research
Quarterly Financials Snapshot
(Rs mn) Q3FY17 Q3FY16 YoY (%) Q2FY17 QoQ (%)
Operating income 686 570 20.4 652 5.1
Software service expenses 112 88 26.7 107 4.1
Employee Expenses 198 100 97.9 144 37.5
Other Operating Expenses 184 176 4.5 150 22.8
EBITDA 193 205 -6.2 252 -23.5
Interest Cost 0 0 NM 0 2.2
Depreciation 45 64 -29.9 42 6.2
Other Income 312 205 52.2 302 3.3
PBT 459 346 32.6 511 -10.1
Tax 119 110 8.5 134 -11.0
APAT 339 236 43.9 376 -9.9
E/o gains (adj for tax) 0 -56 NM 0 NM
RPAT 339 292 16.1 376 -9.9
Source: Company, HDFC sec Research
PCG RESEARCH
Private Client Group - PCG RESEARCH P a g e | 5
India’s Exchange Traded Commodity Derivatives (ETCD)
17.6
15.6 16.3
18.0 18.3
15.1
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
2Q
FY1
6
3Q
FY1
6
4Q
FY1
6
1Q
FY1
7
2Q
FY1
7
3Q
FY1
7
Trading value (Rs tn)
Source: Company, HDFC sec Research
Composition of India’s ETCD
31 29 36 36 35 29
28 29 30 29 29
31
24 23 21 22 23 31
17 18 13 13 13 9
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2Q
FY1
6
3Q
FY1
6
4Q
FY1
6
1Q
FY1
7
2Q
FY1
7
3Q
FY1
7
Bullion Energy Base Metals Agri
Source: Company, HDFC sec Research
Market Share of Key Commodity Exchanges
84 83 89 89 89 93
15 16 10 11 10 6
30%
40%
50%
60%
70%
80%
90%
100%
2Q
FY1
6
3Q
FY1
6
4Q
FY1
6
1Q
FY1
7
2Q
FY1
7
3QFY
17
MCX NCDEX Others
Source: Company, HDFC sec Research
PCG RESEARCH
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MCX: Quarterly Trading Value Analysis
150
170
190
210
230
250
270
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
2QFY
16
3QFY
16
4QFY
16
1QFY
17
2QFY
17
3QFY
17
Trading value (Rs tn): LHS ADTV (Rs bn): RHS
Source: Company, HDFC sec Research
MCX’s Traded Value: Sectoral Composition
37 35 40 40 39 30
33 35 34 32 33
34
29 28 24 25 26 34
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2Q
FY1
6
3Q
FY1
6
4Q
FY1
6
1Q
FY1
7
2Q
FY1
7
3Q
FY1
7
Bullion Energy Base Metals Agri
Source: Company, HDFC sec Research
MCX: Market Share
86
87
85
84
84
87
81
82
83
84
85
86
87
88
FY12 FY13 FY14 FY15 FY16 9M FY17
%
Source: Company, HDFC sec Research
PCG RESEARCH
Private Client Group - PCG RESEARCH P a g e | 7
Valuation – Global Exchanges
Country
M-Cap
(US$
mn)
Forward P/E (x) EPS growth (2-yr
CAGR)
PEG
(x)
Forward P/B (x) EV/EBITDA (x) ROE (%)
1-yr fwd 2-yr fwd 1-yr fwd 2-yr fwd 1-yr fwd 2-yr fwd 1-yr fwd 2-yr fwd
Emerging markets
MCX (HDFC Sec estimates) India 898 43.2 37.7 22.3 1.7 4.8 4.6 53.4 33.4 11.5 12.4
Bloomberg Consensus estimates
BM&F Bovespa SA Brazil 10,196 15.0 15.5 1.5 10.4 1.7 1.7 13.5 11.3 10.1 10.6
Bursa Malaysia Bhd Malaysia 1,070 22.2 20.9 7.6 2.8 6.1 5.7 9.8 9.2 25.0 26.0
Bolsa Mexicana Mexico 751 15.7 14.4 9.2 1.6 3.0 2.8 9.3 8.7 17.5 19.4
Multi Commodity Exchange India 898 42.0 29.9 37.5 0.8 4.4 4.0 47.5 28.1 10.9 14.1
EM average
23.7 20.2 14.0 3.9 3.8 3.5 20.0 14.3 15.9 17.5
Developed markets
CME Group USA 39,511 24.3 22.6 55.9 0.4 1.9 1.9 15.0 15.1 7.4 7.7
Hong Kong Exchanges Hong Kong 29,444 32.4 29.2 13.4 2.2 7.3 7.2 4.7 4.2 22.8 24.5
Intercontinental Exchange USA 33,787 18.8 17.2 0.6 29.3 2.2 2.5 13.3 11.9 10.6 11.2
Deutsche Boerse Germany 15,994 17.0 15.2 8.0 1.9 3.3 2.9 11.4 10.4 19.5 19.4
Nasdaq OMX USA 11,135 15.9 14.8 10.3 1.4 1.9 1.9 10.5 10.0 12.4 13.0
Japan Exchange Group Japan 8,103 22.5 21.8 2.9 7.4 3.6 3.2 12.3 12.1 14.8 14.0
Singapore Exchange Singapore 5,546 20.5 19.4 7.0 2.8 9.0 7.2 13.8 13.1 36.2 35.7
ASX Australia 7,215 21.1 20.0 5.2 3.9 2.5 2.5 13.8 13.2 11.8 12.2
CBOE Holdings USA 6,001 27.6 22.8 7.7 3.0 20.7 5.6 13.7 12.1 28.5 25.5
Hellenic Exchanges Greece 335 29.0 21.7 13.8 1.6 2.1 2.1 12.6 9.2 7.4 10.3
NZX Ltd New Zealand 201 18.6 16.6 31.7 0.5 3.9 4.1 9.5 9.0 21.1 23.5
Developed markets average
22.5 20.1 14.2 4.9 5.3 3.7 11.9 10.9 17.5 17.9
Global average
22.8 20.1 14.1 4.7 4.9 3.7 14.0 11.8 17.1 17.8
Source: Company, HDFC sec Research
PCG RESEARCH
Private Client Group - PCG RESEARCH P a g e | 8
Income Statement (Standalone)
YE March (Rs mn) FY15 FY16 FY17E FY18E FY19E
Net Revenues (Rs mn) 2,225 2,349 2,832 3,556 4,478
Growth (%) (34.7) 5.6 20.5 25.6 25.9
Software support charges 384 374 417 483 568
Employee Expenses 349 406 622 598 658
SG&A Expenses 228 307 326 345 366
Other Operating Expenses 388 497 537 602 739
EBITDA 876 767 930 1,528 2,147
EBITDA Margin (%) 39.4 32.6 32.8 43.0 48.0
EBITDA Growth (%) (39.9) (12.5) 21.3 64.3 40.6
Depreciation 259 246 190 317 328
EBIT 616 521 739 1,210 1,819
Other Income (Including EO Items) 1,098 311 1,231 1,038 995
Interest 14 0 0 0 0
PBT 1,701 831 1,970 2,248 2,815
Tax (Incl Deferred) 450 413 552 624 793
Minority Interest 0 0 0 0 0
RPAT 1,251 418 1,418 1,624 2,021
EO (Loss) / Profit (Net Of Tax) 0 (667) 0 0 0
APAT 1,251 1,085 1,418 1,624 2,021
APAT Growth (%) (18.1) (13.2) 30.7 14.5 24.5
Adjusted EPS (Rs) 24.5 21.3 27.8 31.8 39.6
EPS Growth (%) (18.1) (13.2) 30.7 14.5 24.5
Source: Company, HDFC sec Research
Balance Sheet (Standalone)
YE March (Rs mn) FY15 FY16 FY17E FY18E FY19E
SOURCES OF FUNDS
Share Capital - Equity 510 510 510 510 510
Reserves 11,512 11,529 12,190 12,955 13,927
Total Shareholders’ Funds 12,022 12,039 12,700 13,465 14,437
Settlement guarantee fund 1,871 1,879 1,973 2,072 2,175
Total Debt 0 0 0 0 0
Net Deferred Taxes (Net) 97 49 49 49 49
Long Term Provisions & Others 246 234 234 234 234
TOTAL SOURCES OF FUNDS 14,236 14,201 14,955 15,819 16,894
APPLICATION OF FUNDS
Net Block 1,451 1,401 1,352 3,489 3,384
Investments 132 2,230 2,230 2,229 2,230
LT Loans & Advances 382 310 325 341 358
Total Non-current Assets 1,965 3,941 3,907 6,059 5,973
Debtors 107 42 54 68 86
Other Current Assets 786 737 918 1,137 1,415
Cash & Equivalents 15,385 13,448 14,510 13,870 15,845
Total Current Assets 16,278 14,227 15,482 15,074 17,345
Trading margin from members 2,389 2,473 2,865 3,667 4,693
Other Current Liabilities & Provns 1,617 1,495 1,569 1,648 1,730
Total Current Liabilities 4,007 3,967 4,435 5,315 6,423
Net Current Assets 12,271 10,260 11,048 9,760 10,922
TOTAL APPLICATION OF FUNDS 14,236 14,201 14,955 15,819 16,895
Source: Company, HDFC sec Research
PCG RESEARCH
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Cash Flow (Standalone)
YE March (Rs mn) FY15 FY16 FY17E FY18E FY19E
Reported PBT 1,701 831 1,970 2,248 2,815
Non-operating & EO items (1,075) (927) (1,231) (1,038) (995)
Interest expenses 14 0 0 0 0
Depreciation 259 246 190 317 328
Working Capital Change 207 518 258 632 796
Tax Paid (409) (290) (552) (624) (793)
OPERATING CASH FLOW ( a ) 696 378 636 1,535 2,150
Capex (84) (202) (142) (2,453) (224)
Free cash flow (FCF) 613 175 494 (918) 1,926
Investments 1 (2,098) 0 0 0
Non-operating Income 310 92 1,231 1,038 995
INVESTING CASH FLOW ( b ) 227 (2,209) 1,089 (1,415) 772
Debt Issuance/(Repaid) 0 0 0 0 0
Interest Expenses (14) (0) 0 0 0
FCFE 599 175 494 (918) 1,926
Share Capital Issuance 0 0 0 0 0
Dividend (179) (614) (664) (760) (946)
FINANCING CASH FLOW ( c ) (193) (614) (664) (760) (946)
NET CASH FLOW (a+b+c) 731 (2,445) 1,061 (640) 1,975
EO Items, Others 536 509 0 0 0
Closing Cash & Equivalents 15,385 13,448 14,510 13,870 15,845
Source: Company, HDFC sec Research
Key Ratio (Standalone)
FY15 FY16 FY17E FY18E FY19E
PROFITABILITY (%)
GPM 82.7 84.1 85.3 86.4 87.3
EBITDA Margin 39.4 32.6 32.8 43.0 48.0
APAT Margin 56.2 46.2 50.1 45.7 45.1
RoE 10.7 9.0 11.5 12.4 14.5
RoIC (or Core RoCE) 42.5 22.0 28.1 21.7 26.4
RoCE 7.1 6.0 7.6 8.0 9.1
EFFICIENCY
Tax Rate (%) 28.0 30.8 30.5 30.0 30.0
Fixed Asset Turnover (x) 0.1 0.1 0.1 0.2 0.2
Debtors (days) 17 7 7 7 7
Other Current Assets (days) 118 104 110 110 110
Other Current Liab & Provns
(days) 590 463 447 420 378
Cash Conversion Cycle (days) (455) (353) (330) (303) (261)
Debt/EBITDA (x) (15) (14) (13) (7) (5)
Net D/E (x) (1) (1) (1) (1) (1)
Interest Coverage (x) 124 3,941 NM NM NM
PER SHARE DATA (Rs)
EPS 24.6 21.3 27.8 31.8 39.6
CEPS 29.7 26.1 31.5 38.1 46.1
Dividend 10.0 6.5 11.1 12.7 15.9
Book Value 235.7 236.1 249.0 264.0 283.1
VALUATION
P/E (x) 48.8 56.5 43.2 37.7 30.3
P/BV (x) 5.1 5.1 4.8 4.6 4.2
EV/EBITDA (x) 55.1 65.6 53.4 33.4 23.3
OCF/EV (%) 1.4 2.1 1.3 3.0 4.3
FCF/EV (%) 1.3 1.7 1.0 (1.8) 3.8
FCFE/Mkt Cap (%) 0.1 (0.2) 0.3 0.0 0.5
Dividend Yield (%) 0.8 0.5 0.9 1.1 1.3
Source: Company, HDFC sec Research
PCG RESEARCH
Private Client Group - PCG RESEARCH P a g e | 10
Rating Chart
R E T U R N
HIGH
MEDIUM
LOW
LOW MEDIUM HIGH
RISK
Ratings Explanation:
RATING Risk - Return BEAR CASE BASE CASE BULL CASE
BLUE LOW RISK - LOW RETURN STOCKS
IF RISKS MANIFEST PRICE CAN FALL 20% OR MORE
IF RISKS MANIFEST PRICE CAN FALL 15%
& IF INVESTMENT RATIONALE
FRUCTFIES PRICE CAN RISE BY 15%
IF INVESTMENT RATIONALE
FRUCTFIES PRICE CAN RISE BY 20% OR
MORE
YELLOW MEDIUM RISK - HIGH RETURN STOCKS
IF RISKS MANIFEST PRICE CAN FALL 35% OR MORE
IF RISKS MANIFEST PRICE CAN FALL 20%
& IF INVESTMENT RATIONALE
FRUCTFIES PRICE CAN RISE BY 30%
IF INVESTMENT RATIONALE
FRUCTFIES PRICE CAN RISE BY 35% OR
MORE
RED HIGH RISK - HIGH RETURN STOCKS
IF RISKS MANIFEST PRICE CAN FALL 50% OR MORE
IF RISKS MANIFEST PRICE CAN FALL 30%
& IF INVESTMENT RATIONALE
FRUCTFIES PRICE CAN RISE BY 30%
IF INVESTMENT RATIONALE
FRUCTFIES PRICE CAN RISE BY 50%
OR MORE
PCG RESEARCH
Private Client Group - PCG RESEARCH P a g e | 11
Price Chart
100
300
500
700
900
1100
1300
1500
Rating Definition:
Buy: Stock is expected to gain by 10% or more in the next 1 Year. Sell: Stock is expected to decline by 10% or more in the next 1 Year.
PCG RESEARCH
Private Client Group - PCG RESEARCH P a g e | 12
I, Devarsh Vakil, MBM, author and the name subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. Research Analyst or his/her relative or HDFC Securities Ltd. does not have any financial interest in the subject company. Also Research Analyst or his relative or HDFC Securities Ltd. or its Associate may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of the Research Report. Further Research Analyst or his relative or HDFC Securities Ltd. or its associate does not have any material conflict of interest. Any holding in stock – No Disclaimer: This report has been prepared by HDFC Securities Ltd and is meant for sole use by the recipient and not for circulation. The information and opinions contained herein have been compiled or arrived at, based upon information obtained in good faith from sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. This document is for information purposes only. Descriptions of any company or companies or their securities mentioned herein are not intended to be complete and this document is not, and should not be construed as an offer or solicitation of an offer, to buy or sell any securities or other financial instruments. 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In addition, investors in securities such as ADRs, the values of which are influenced by foreign currencies effectively assume currency risk. It should not be considered to be taken as an offer to sell or a solicitation to buy any security. HDFC Securities Ltd may from time to time solicit from, or perform broking, or other services for, any company mentioned in this mail and/or its attachments. HDFC Securities and its affiliated company(ies), their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell the securities of the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions. HDFC Securities Ltd, its directors, analysts or employees do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments made or any action taken on basis of this report, including but not restricted to, fluctuation in the prices of shares and bonds, changes in the currency rates, diminution in the NAVs, reduction in the dividend or income, etc. HDFC Securities Ltd and other group companies, its directors, associates, employees may have various positions in any of the stocks, securities and financial instruments dealt in the report, or may make sell or purchase or other deals in these securities from time to time or may deal in other securities of the companies / organizations described in this report. HDFC Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months. HDFC Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction in the normal course of business. HDFC Securities or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither HDFC Securities nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. HDFC Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report. HDFC Securities Ltd. is a SEBI Registered Research Analyst having registration no. INH000002475 HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042
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