MindTree Ltd MINLIM) - ICICI...
Transcript of MindTree Ltd MINLIM) - ICICI...
ICIC
I S
ecurit
ies –
Retail E
quit
y R
esearch
Result
Update
January 15, 2020
CMP: | 886 Target: | 945 (7%) Target Period: 12 months
MindTree Ltd (MINLIM)
HOLD
Margin expansion key positive…
The company reported 1.5% QoQ growth in dollar revenues driven by its
top client. However, revenues were below our estimates while growth in 6-
10 clients continued to decline in the quarter. The key positive in the quarter
was margin expansion of 262 bps mainly led by operational efficiency and
currency benefit. Key concern in the quarter was low digital growth at 13.5%
YoY, dip in TCV (down 19.1% YoY & 32.6% QoQ) leading to book to bill ratio
of 0.76x and increase in attrition to 17.2% (vs. 13.4% in Q3FY19).
Improvement in annuity business to provide revenue visibility
Revenue growth of 1.5% QoQ was driven by 4.8% QoQ growth in realisation
(led by projects entering steady state) offset by 3.1% dip in volumes (led by
furloughs). Top customer was the prime contributor to the growth as
revenues from it grew 13.9% QoQ. On the order book front, TCV in the
quarter declined significantly and book to bill dipped to 0.76x. We believe
this may be due to delay in deal closure and may improve in subsequent
quarters. In addition, the company is strategically transitioning from project
based work to annuity based work, which will provide better revenue
visibility and consistent growth. Further, to improve revenue the company
is cutting tail end clients and focusing on mining and scaling top clients. The
company has also set up large deals team to achieve the same. We believe
these changes will take time but will provide long term visibility to revenue
growth. Hence, we expect dollar revenues to increase at 9.0% CAGR in
FY19-22E.
Margins to be on growth trajectory
The company reported healthy margin growth in the current quarter led by
pyramid rationalisation, currency benefit and stable project cost. Going
forward, margins are expected to improve QoQ driven by factors such as
employee pyramid, offshoring, pricing, utilisation and annuity business.
Hence, we expect margins to improve 16.1% in FY21E and 16.4% in FY22E.
Valuation & Outlook
We believe the company’s strategy to increase annuity business will provide
long term visibility to revenues. In addition, the company’s aim to improve
margins via employee pyramid, offshoring, pricing, utilisation and annuity
business bodes well for the profit growth. Further, the company has
changed the forex hedging strategy to a three year period, which will
provide better PAT margin visibility. Based on these factors, we revise our
EPS and multiple upwards leading to a revised target price of | 945/share.
However, the recent run up in the stock prompts us to maintain HOLD rating
on the stock. Key things to watch out in coming quarters are: 1) attrition, 2)
deal TCV and 3) digital revenue growth.
Key Financial Summary
s
Key Financials FY18 FY19 FY20E FY21E FY22E CAGR (FY19-22E)
Net Sales 5,463 7,022 7,720 8,451 9,212 9.5%
EBITDA 741 1,065 1,061 1,361 1,511 12.4%
EBITDA Margins (%) 13.6 15.2 13.7 16.1 16.4
Net Profit 570 754 613 839 942 7.7%
EPS (|) 34.3 45.9 37.2 51.0 57.2
P/E 25.8 19.3 23.8 17.4 15.5
RoNW (%) 20.8 22.8 16.8 20.4 20.3
RoCE (%) 24.9 29.8 23.7 27.8 27.6
Source: Company, ICICI Direct Research
Particulars
Particular Amount
Market Capitalization (| Crore) 14,547.1
Total Debt (| Crore) 0.5
Cash and Investments (| Crore) 939.8
EV (| Crore) 13,607.8
52 week H/L 996 / 652
Equity capital 164.2
Face value | 10
Key Highlights
Top client growth, improvement in
deal TCV and digital revenues to be
key growth drivers
Levers visible to improve margins
from here on. Employee pyramid,
offshoring, pricing, utilisation and
annuity business to drive margins
Revise our EPS and multiple upwards
and arrive at a revised target price of
| 945/share
Research Analyst
Devang Bhatt
Deepti Tayal
ICICI Securities | Retail Research 2
ICICI Direct Research
Result Update | MindTree Ltd
Exhibit 1: Variance Analysis
Q3FY20 Q3FY20E Q3FY19 YoY (%) Q2FY20 QoQ (%) Comments
Revenue 1,965.3 1,968.7 1,787.2 10.0 1,914.3 2.7
US$ revenues grew 1.5% QoQ to $275 million led by
technology, media & services vertical
Employee expenses 1,253.5 1,273.7 1,114.2 12.5 1,264.7 -0.9
Gross Margin 711.8 694.9 673.0 5.8 649.6 9.6
Gross margin (%) 36.2 35.3 37.7 -144 bps 33.9 228 bps
SG&A expenses 405.5 409.5 389.7 4.1 401.4 1.0
EBITDA 306.3 285.5 283.3 8.1 248.2 23.4
EBITDA Margin (%) 15.6 14.5 15.9 -27 bps 13.0 262 bps
Adjusted EBITDA margins expanded 262 bps QoQ on
account of pyramid rationalisation (150 bps), currency
benefit (50 bps) and stability in project cost (70 bps)
Depreciation 69.9 72.8 41.0 70.5 70.7 -1.1
EBIT 236.4 212.6 242.3 -2.4 177.5 33.2
EBIT Margin (%) 12.0 10.8 13.6 -153 bps 9.3 276 bps
Other income 34.8 20.1 -20.0 -274.0 19.7 76.6
PBT 271.2 232.7 222.3 22.0 197.2 37.5
Tax paid 66.2 58.0 26.3 151.7 59.2 11.8
PAT 197.0 160.9 191.2 3.0 135.0 45.9PAT came in above our estimates on the back of
higher other income
Key Metrics
Closing employees 21,561 21,767 19,908 8.3 21,267 1.4
Attrition (%) 17.2 15.3 13.4 380 bps 16.5 70 bps
Attrition spiked sharply by 70 bps QoQ. However, the
management has indicated that attrition will stabilise
in coming quarters
Utilisation ex-trainees(%) 78.0 77.5 76.4 160 bps 79.0 -100 bps
Average $/| 71.4 71.2 71.1 0.5 70.6 1.1
Source: Company, ICICI Direct Research
Exhibit 2: Change in estimates
FY22E Comments
(| Crore) Old New % Change Old New % Change Introduced
Revenue 7,723 7,720 0.0 8,557 8,451 -1.2 9,212 Introduced FY22E in the quarter
EBITDA 1,004 1,061 5.6 1,284 1,361 6.0 1,511
EBITDA Margin (%) 13.0 13.7 74 bps 15.0 16.1 110 bps 16.4
We revise our margin estimates upwards
considering multiple levers available to the
company
PAT 553 613 10.8 752 839 11.6 942Upward revision in operating margins lead to
increase in PAT estimates
EPS (|) 33.7 37.2 10.4 45.8 51.0 11.3 57.2
FY20E FY21E
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 3
ICICI Direct Research
Result Update | MindTree Ltd
Conference Call Highlights
Revenue outlook: A few strategic things that MindTree is aiming at
is transitioning the company from project based to more annuity
base, which will give the company flexibility in utilisation and
pricing. This has also led to higher fixed cost projects (which
increased 280 bps to 58.7% in current quarter). Although this will
take time, it will provide stability to revenues. The company is also
focusing in client mining, scaling up the existing clients to US$50
million and cutting the tail end clients. The company has also set up
a large deal team to achieve the same. This gives us comfort on long
term growth trajectory in revenues
Margin walkthrough: In terms of margins, the company expects a
QoQ improvement in margins in coming quarters. MindTree aims to
do so through cut discretionary spend in SG&A, pyramid
rationalisation, improving utilisation & pricing and improving annuity
revenues
Key draggers in quarter: Pointers that were key draggers in this
quarter were 1) dip in total TCV by 32.6% QoQ, 2) increase in attrition
to 17.2% (vs. 13.4% in Q3FY19), 3) decline in top 6-10 and 4) poor
growth in digital revenues. On the same, the management said that
decline in total TCV was due to delay in deal closure. Increase in
attrition for last four to five quarters has been mainly due to the
leadership transition phase.The management indicated that attrition
is stabilising. We expect to see this improving in coming quarters
Order book: The company’s order book declined 32.6% QoQ to
US$207 million wherein TCV from new declined 34.7% YoY and
from renewals dipped 31.2% YoY. Delay in deal closure and change
in management could have led to a dip in TCV. We expect renewals
to gain momentum in coming quarters. The digital order book
declined 9.3% QoQ to US$127 million. Digital order book accounts
for 61% of overall order book. Dip in overall order book was due to
the timing difference. Hence, quarter to quarter volatility could be
there
Clientele details: Top customer contribution to overall revenues was
at 23.1% in the quarter and witnessed growth of 13.9% QoQ. Top 6-
10 customers dipped 2.6% QoQ while top 2-5 customers grew 4.8%
QoQ. The company has cut some of its tail clients. This has led to a
dip in overall clients from 343 to 320. Further, in line with the
company’s strategy to improve client mining, the company has
added one client in the US$25 million bucket
Employee update: With net hiring of 294 in Q3, employee strength
was at 21,561. Utilisation (ex-trainees) declined 100 bps QoQ to 78%
led by furloughs
ICICI Securities | Retail Research 4
ICICI Direct Research
Result Update | MindTree Ltd
Key Metrics
Exhibit 3: Geography wise break-up ES
Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20
Revenue by geography (%)
US 73.6 73.4 73.6 73.7 73.7 74.6
Europe 18.7 18.7 18.5 17.8 17.6 17.0
India 3.3 3.6 3.7 4.1 4.2 4.0
RoW 4.4 4.2 4.2 4.4 4.5 4.4
Growth QoQ (%)
US 3.3 1.8 4.5 1.0 2.6 2.8
Europe -5.1 2.1 3.1 -3.0 1.4 -1.9
India 8.6 11.3 7.1 11.7 5.1 -3.3
RoW 6.9 -2.6 4.2 5.6 4.9 -0.7
Source: Company, ICICI Direct Research
Exhibit 4: Industry wise break-up
Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20
Revenue by verticals (%)
Technology, Media & services 39.3 39.4 39.6 39.4 39.8 41.5
BFSI 22.4 21.7 21.8 21.6 21.6 21.3
Retail, CPG & Mfg 21.7 22.3 22.2 22.2 21.7 20.6
Travel & Hospitality 16.7 16.7 16.4 16.8 16.9 16.6
Growth QoQ (%)
Technology, Media & services 3.1 2.3 4.7 0.3 3.6 5.9
BFSI 2.5 -1.1 4.7 -0.1 2.6 0.1
Retail, CPG & Mfg -4.2 4.9 3.7 0.8 0.3 -3.6
Travel & Hospitality 7.8 2.1 2.3 3.3 3.2 -0.3
Source: Company, ICICI Direct Research
Exhibit 5: Service offerings break up
Q3FY19 Q2FY20 Q3FY20 QoQ YoY
Revenue by service offerings (%)
Interactive 22.1 23.8 22.3 -4.9 10.4
Data Science and Engineering services 10.9 11 12.1 11.7 21.5
Cloud Services 3.6 3 3.6 21.9 9.4
Others 0.2 0.2 0.2 1.5 9.4
Total Digtal 36.8 38.0 38.2 2.1 13.6
Test Engineering 19 18.7 17.7 -3.9 1.9
Package Solutions 8.3 7 6.5 -5.7 -14.3
Infrastructure Management & Tech Support 23.4 24.6 24.9 2.8 16.4
ADM and Product Engineering 12.5 11.7 12.7 10.2 11.2
Source: Company, ICICI Direct Research
Growth was driven by US
Technology, Media & services drove growth
Digital growth was subdued this quarter
ICICI Securities | Retail Research 5
ICICI Direct Research
Result Update | MindTree Ltd
Exhibit 6: Client & human resource matrix
Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20
Client metrics
$1 mn Clients 111 116 120 122 130 134
$10 mn Clients 21 21 23 23 21 22
$25 mn Clients 4 4 4 4 4 5
$50 mn Clients 1 1 1 1 1 1
$100 mn Clients 1 1 1 1 1 1
Headcount, Utilization & Attrition
Total Employees 19402 19908 20204 20935 21267 21561
Utilization (Excluding trainees) 76.5 76.4 77.1 77.9 79.0 78.0
Source: Company, ICICI Direct Research
Increase in attrition remains key risk for the
company
The company added 1 clients in US$25 million
bucket
ICICI Securities | Retail Research 6
ICICI Direct Research
Result Update | MindTree Ltd
Financial story in charts
Exhibit 7: Dollar revenues to increase 9.0% over FY19-22E
715 780847
242 246 252 262
1001
264 271 275
1092
1190
1297
22.5
9.08.6
20.7
19.517.4
15.818.3
9.4 10.0
9.4
9.0 9.0
9.0
0
10
20
30
40
50
0
300
600
900
1200
1500
FY16
FY17
FY18
Q1FY19
Q2FY19
Q3FY19
Q4FY19
FY19
Q1FY20
Q2FY20
Q3FY20
FY20E
FY21E
FY22E
%
$ m
illion
Dollar revenue Growth, YoY
Source: Company, ICICI Direct Research
Exhibit 8: Revise EBITDA margin estimates
17.6
13.5 13.614.1
15.415.9
15.2 15.2
10.0
13.0
15.6
13.7
16.1 16.4
7
10
13
16
19
FY16
FY17
FY18
Q1FY19
Q2FY19
Q3FY19
Q4FY19
FY19
Q1FY20
Q2FY20
Q3FY20
FY20E
FY21E
FY22E
%
EBITDA margin
Source: Company, ICICI Direct Research
Exhibit 9: PAT trend
553
419
570
158206 191 198
754
93135
197
613
839
50
200
350
500
650
800
950
FY16
FY17
FY18
Q1FY19
Q2FY19
Q3FY19
Q4FY19
FY19
Q1FY20
Q2FY20
Q3FY20
FY20E
FY21E
| crore
PAT
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 7
ICICI Direct Research
Result Update | MindTree Ltd
Exhibit 10: One year forward rolling price to earnings
0
400
800
1200
1600
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Jul-15
Jan-16
Jul-16
Jan-17
Jul-17
Jan-18
Jul-18
Jan-19
Jul-19
Jan-20
Price 25 20 15 10 5
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 8
ICICI Direct Research
Result Update | MindTree Ltd
Exhibit 11: Recommendation History vs. Consensus
20.0
40.0
60.0
80.0
100.0
200
400
600
800
1,000
1,200
1,400
Jan-20
Dec-19
Nov-19
Oct-19
Sep-1
9
Jul-19
Jun-19
May-19
Apr-19
Mar-19
Feb-19
Jan-19
Dec-18
Nov-18
Oct-18
Sep-1
8
Aug-18
Jul-18
Jun-18
May-18
Mar-18
Feb-18
Jan-18
Dec-17
Nov-17
Oct-17
Sep-1
7
Aug-17
Jul-17
Jun-17
May-17
Apr-17
Mar-17
Feb-17
Dec-16
(%
)
(|)
Price Idirect target Consensus Target Mean % Consensus with BUY
Source: Bloomberg, Company, ICICI Direct Research
Exhibit 12: Top 10 Shareholders
Rank Name Latest Filing Date % O/S Position (m) Change (m)
1 Larsen & Toubro Ltd 3-Jul-19 60.6% 99.7 0.9
2 Nalanda India Fund L 30-Jun-19 8.9% 14.6 0.0
3 Krishnakumar N 30-Jun-19 3.7% 6.1 0.0
4 Natarajan Krishnakum 14-Mar-18 3.7% 6.1 -0.3
5 Bagchi Subroto 30-Jun-19 3.1% 5.1 0.0
6 Vanguard Group 30-Nov-19 2.9% 4.7 0.0
7 Amansa Holdings Pvt 30-Jun-19 2.5% 4.1 -0.4
8 Uti Asset Management 30-Nov-19 2.5% 4.1 -0.5
9 Wgi Em Smaller Co Fu 30-Jun-19 1.9% 3.2 0.5
10 Mirae Asset Global I 31-Dec-19 1.8% 2.9 0.4
Source: Bloomberg, ICICI Direct Research
Exhibit 13: Shareholding Pattern
(in %) Jun-19 Sep-19 Dec-19
Promoter 13.32 73.76 73.64
FII 86.68 26.24 26.36
DII 0.00 0.00 0.00
Others 100.00 100.00 100.00
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 9
ICICI Direct Research
Result Update | MindTree Ltd
Financial summary
Exhibit 14: Profit and loss statement | crore
FY19 FY20E FY21E FY22E
Total Revenues 7,022 7,720 8,451 9,212
Growth (%) 28.5 9.9 9.5 9.0
COGS 4,421 5,041 5,349 5,812
Other Expenses 1,536 1,618 1,741 1,888
EBITDA 1,065 1,061 1,361 1,511
Growth (%) 43.8 (0.4) 28.3 11.0
Depreciation 164 278 304 332
Other Income 89 87 95 108
Interest paid 3 52 53 54
PBT before Exceptional Items 987 818 1,099 1,233
PBT 987 818 1,099 1,233
Growth (%) 32.9 (17.1) 34.4 12.3
Total Tax 233 205 259 291
PAT before MI 754 613 839 942
Minority Int & Pft. from associate - - - -
PAT 754 613 839 942
EPS - diluted 45.9 37.2 51.0 57.2
EPS (Growth %) 34.0 (19.0) 36.9 12.3
Source: Company, ICICI Direct Research
Exhibit 15: Cash flow statement | crore
FY19 FY20E FY21E FY22E
Net profit before Tax 987 818 1,099 1,233
Depreciation 164 278 304 332
(inc)/dec in Current Assets (366) (277) (237) (307)
(inc)/dec in current Liabilities 130 74 17 53
CF from operations 630 593 801 885
Other Investments (23) 87 95 108
(Purchase)/Sale of Fixed Assets (171) (309) (338) (368)
CF from investing Activities (193) (222) (243) (260)
Inc / (Dec) in Equity Capital 0 - - -
Inc / (Dec) in sec.loan Funds (300) - - -
Dividend & Dividend tax (218) (270) (369) (415)
Interest Paid on Loans (4) (52) (53) (54)
CF from Financial Activities (522) (322) (422) (469)
Cash generating during the year (72) 50 136 156
Opening cash balance 329 257 307 443
Exchange rate differences 13 - - -
Closing cash 256 307 443 599
Source: Company, ICICI Direct Research
Exhibit 16: Balance sheet | crore
FY19 FY20E FY21E FY22E
Equity 164 164 164 164
Reserves & Surplus 3,142 3,486 3,956 4,483
Networth 3,307 3,650 4,120 4,647
Minority Interest - - - -
Total Debt 1 1 1 1
Other long term liabilities 17 17 17 17
Source of funds 3,324 3,668 4,138 4,665
Net Block 376 407 440 477
CWIP 30 30 30 30
Other intangible assets&Goodwill 591 591 591 591
Other long term assets 415 475 555 635
Current investments 684 684 684 684
Debtors 1,336 1,452 1,609 1,733
Cash & Cash equivalents 256 307 443 599
Loans and advances 12 14 15 18
Other Current Assets(OCA) 480 639 718 898
Trade payables 213 231 253 276
Other Current liabilities 502 544 541 584
Provisions 140 154 152 138
Application of funds 3,324 3,667 4,138 4,665
Source: Company, ICICI Direct Research
Exhibit 17: Key ratios | crore
(Year-end March) FY19 FY20E FY21E FY22E
Per share data (|)
Adjusted EPS (Diluted) 45.9 37.2 51.0 57.2
BV per share 201.4 221.6 250.1 282.1
DPS 27.0 16.4 22.4 25.2
Cash per Share 15.6 18.6 26.9 36.4
Operating Ratios
EBITDA Margin (%) 15.2 13.7 16.1 16.4
PBT Margin (%) 14.1 10.6 13.0 13.4
PAT Margin (%) 10.7 7.9 9.9 10.2
Debtor days 69 69 69 69
Creditor days 11 11 11 11
Return Ratios (%)
RoE 22.8 16.8 20.4 20.3
RoCE 29.8 23.7 27.8 27.6
RoIC 38.2 29.6 35.4 35.2
Valuation Ratios (x)
P/E 19.3 23.8 17.4 15.5
EV / EBITDA 12.8 12.8 9.9 8.8
Price to Book Value 4.4 4.0 3.5 3.1
EV / Net Sales 1.9 1.8 1.6 1.4
Market Cap / Sales 2.1 1.9 1.7 1.6
Solvency Ratios
Debt/EBITDA 0.0 0.0 0.0 0.0
Debt / Equity 0.0 0.0 0.0 0.0
Current Ratio 2.1 2.3 2.5 2.7
Quick Ratio 2.1 2.3 2.5 2.7
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 10
ICICI Direct Research
Result Update | MindTree Ltd
Exhibit 18: ICICI Direct coverage universe (IT)
CMP M Cap
(|) TP(|) Rating (| Cr) FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E
HCL Tech (HCLTEC) 595 600 Hold 152,663 37.3 38.4 42.8 15.1 14.7 13.2 10.5 9.3 7.9 26.9 25.3 24.7 24.5 21.4 20.6
Infosys (INFTEC) 765 890 Buy 336,424 35.4 39.3 45.3 21.8 19.7 17.1 14.9 13.4 11.3 32.9 32.2 34.5 23.7 24.2 25.5
MindTree (MINCON) 886 945 Hold 14,547 45.9 37.2 51.0 19.3 23.8 17.4 12.8 12.8 9.9 29.8 23.7 27.8 22.8 16.8 20.4
L&T Intotech (LTINFO) 1,946 2,025 Buy 30,033 87.3 89.3 103.6 19.8 19.4 16.7 14.8 13.4 11.2 40.4 34.5 33.6 31.0 26.5 25.8
NIIT Tech (NIITEC) 1,807 1,415 Hold 8,931 65.7 73.6 83.2 22.1 20.3 17.7 12.4 10.6 9.2 25.2 23.5 23.8 19.5 19.2 19.2
TCS (TCS) 2,201 2,005 Hold 739,500 83.8 86.2 95.5 23.4 22.8 20.6 17.7 16.6 14.8 43.8 42.6 43.9 34.4 33.4 34.4
Tech M (TECMAH) 792 900 Buy 70,424 47.7 47.6 54.9 16.4 16.4 14.3 9.9 9.8 8.3 23.6 21.2 21.9 21.2 18.5 18.7
Wipro (WIPRO) 246 285 Buy 148,149 14.9 17.6 19.1 16.5 14.0 12.9 10.0 9.5 8.2 17.8 19.0 18.9 15.8 18.3 17.9
RoE (%)
Sector / Company
EPS (|) P/E (x) EV/EBITDA (x) RoCE (%)
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 11
ICICI Direct Research
Result Update | MindTree Ltd
RATING RATIONALE
ICICI Direct endeavors to provide objective opinions and recommendations. ICICI Direct assigns ratings to its
stocks according to their notional target price vs. current market price and then categorizes them as Buy, Hold,
Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined
as the analysts' valuation for a stock
Buy: >15%
Hold: -5% to 15%;
Reduce: -15% to -5%;
Sell: <-15%
Pankaj Pandey Head – Research [email protected]
ICICI Direct Research Desk,
ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No 7, MIDC,
Andheri (East)
Mumbai – 400 093
ICICI Securities | Retail Research 12
ICICI Direct Research
Result Update | MindTree Ltd
ANALYST CERTIFICATION
I/We, Devang Bhatt, PGDBM, Deepti Tayal, MBA, Research Analysts, authors and the names 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. It is also confirmed that above mentioned
Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months and do not serve as an officer, director or employee of the companies mentioned in the report.
Terms & conditions and other disclosures:
ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities Limited is a Sebi registered
Research Analyst with SEBI Registration Number – INH000000990. ICICI Securities Limited Sebi Registration is INZ000183631 for stock broker. ICICI Securities is a subsidiary of ICICI Bank which is India’s largest private sector bank
and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on
www.icicibank.com
ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship
with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the
securities or derivatives of any companies that the analysts cover.
Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding positions, trading volume etc as opposed to focusing on a company's fundamentals and, as
such, may not match with the recommendation in fundamental reports. Investors may visit icicidirect.com to view the Fundamental and Technical Research Reports.
Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.
ICICI Securities Limited has two independent equity research groups: Institutional Research and Retail Research. This report has been prepared by the Retail Research. The views and opinions expressed in this document may or may
not match or may be contrary with the views, estimates, rating, target price of the Institutional Research.
The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected
recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities. While we would
endeavour to update the information herein on a reasonable basis, ICICI Securities is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI
Securities 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 ICICI Securities policies, in
circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances.
This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein
is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers
simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting
and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who
must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient.
The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities
whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks
associated before investing in the securities markets. 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.
ICICI 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.
ICICI 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.
ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates 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 ICICI Securities nor Research Analysts and their relatives 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.
ICICI Securities or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of
the research report.
Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in this
report.
ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.
Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report.
We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities.
This report is not directed 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, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in
all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.