Uflex Ltd BUY -...

Uflex Ltd BUY

- 1 - Tuesday, 05th April 2016

This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.

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Target Price ` 402 CMP ` 174 FY18E EV/EBITDA 4.0X

Index Details Uflex Ltd (Uflex) is one of the largest fully integrated Indian flexible

packaging solution providers with a global offering. In our opinion at the

CMP of Rs 174 (0.4 P/BV) the stock is extremely undervalued. However,

we believe this is set to change and expect the stock to get re-rated as

the growth story unfolds. We recommend a buy on the stock with a

SOTP based valuation price of Rs 402 (4x FY18 EV/EBITDA)

representing an upside potential of 134% (over 18 months). At the CMP

the stock is trading at 2.6x its forward FY18 EV/EBITDA.

We are positive on the stock given that:

The Indian packaging industry is one of the fastest growing markets

and expected to become the fourth-largest packaging market in the

world. Within packaging, the flexible plastic segment is the fastest-

growing in India, clocking a CAGR of 16.6% during the last five

years. Uflex by virtue of its leadership position is best placed to

benefit from this opportunity.

Revenues are expected to grow at a CAGR of 7.4% from Rs 6,180 cr

in FY 15 to 7,655 cr in FY 18 while consolidated net earnings are

expected to grow at a CAGR of 23.5% to Rs 472.3 cr over the same

period. Its marquee client portfolio ensures repeat business for value

added products. Further the improving product mix - in favour of the

packaging business - should help Uflex improve margins

substantially. The EBITDA and PAT margins are expected to reach

14.3% (+250bps) and 6.2% (+210 bps) respectively by FY18.

Uflex has been at the forefront of innovation and in the past has

added several feathers to its cap viz 3D bags, flexi tubes, High

Barrier Laminate for Packaging Snacks etc. The Global Dupont

Packaging Innovation Silver Award 2015 for the premium shower

proof bag for building materials is testimony of its innovative DNA.

This product if embraced would be a potential game changer for

Uflex.

Sensex 25,400

Nifty 7,758

Industry Packaging

Scrip Details

MktCap (` cr) 1,258.3

BVPS (`) 416.5

O/s Shares (Cr) 7.2

AvVol 31,483

52 Week H/L 201.7/110.2

Div Yield (%) 1.6

FVPS (`) 10.0

Shareholding Pattern

Shareholders %

Promoters 47.6

Public 52.4

Total 100.0

Uflex vs. Sensex

22000

23000

24000

25000

26000

27000

28000

29000

30000

0

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Mar-

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May-1

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Dec-1

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-16

Feb

-16

Mar-

16

Uflex SENSEX (RHS)

Key Financials (` in Cr)

Y/E Mar Net

Sales EBITDA PAT

EPS

(`)

EPS

Growth (%)

RONW

(%)

ROCE

(%)

P/E

(x)

EV/EBITDA

(x)

2015 6,180.3 731.6 251.0 35.3 26.5 8.3 9.0 4.9 4.5 2016E 6,504.2 841.6 277.1 38.4 8.8 8.5 9.9 4.5 3.9 2017E 6,921.9 937.6 344.9 47.8 24.5 9.7 10.7 3.6 3.3 2018E 7,654.8 1093.1 472.3 65.4 36.9 11.8 12.3 2.7 2.6



Uflex is setting up a Rs 550 crore Asceptic Packaging Material Project

for packing liquids at Sanand, Gujarat. Global major Tetra Packaging

is the only player currently operating in this space in India. We believe

that Uflex’s foray into this segment should be well received by the end

user industry considering Uflex’s reputation for offering quality

products. Besides, having dual vendors always works well for the end

user industry.



Company Background

Uflex Limited (Uflex), with a presence in more than 140 countries, is one of the

largest fully integrated Indian flexible packaging solution providers.

Uflex has a vast production capacity for Polyester chips, Biaxially Oriented

Polyethylene Teraphthalate (BOPET) and Biaxially Oriented Polypropylene

(BOPP) films, Cast Polypropylene (CPP) films, Printing and Coating Inks,

adhesives, facilities for Holography, Metallization and PVDC coating, Gravure

Printing Cylinders, Gravure Printing, Lamination and Pouch formation.

The company has been conferred with the Global Dupont Packaging Innovation

Silver Award 2015 for the ‘Safe Pack Bag’ for packaging building materials.

‘

Business structure of Uflex Ltd

Source: Uflex Ltd, Ventura Research



Key Investment Highlights

Packaging business to drive revenue growth

We expect sales to grow at a CAGR of 7.4% from Rs 6,180 cr in FY 15 to 7,655

cr in FY18 driven by robust growth in the packaging product segment (CAGR of

13.7% to Rs 3,930 crore by FY18) which is expected to be the key focus area

for the company. The traditional film business, with its lower contribution margin,

is expected to post flat growth, at best, over the same period.

Revenue growth for Uflex

3,496

4,516

5,161

5,863 6,180

6,504 6,922

7,655

2,000

3,000

4,000

5,000

6,000

7,000

8,000

FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E

Net Sales

Rs in cr


Packaging segment revenue

59% 60% 58% 55% 51% 49%

41% 40% 42% 45% 49% 51%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY13 FY14 FY15 FY16E FY17E FY18E

Value share

Packaging Film Packaging product


share set to improve

83% 80% 79% 78% 77% 75%

17% 20% 21% 22% 23% 25%

0%

20%

40%

60%

80%

100%


Volume share

Packaging Film Packaging product




Rosy outlook for the packaging product business

We expect the packaging product segment volumes to rise significantly (CAGR

of 9.2%) on the back of new product launches and a continued improvement in

the existing product portfolio. In line with this volume growth, revenues are

expected to grow at a CAGR of 13.7% from 2,676 cr in FY15 to 3,930 cr in

FY18. EBITDA margins are also slated to improve by 100 bps per annum to

15% going forward (from the current 13%).

Our bullishness stems from the following :

The Indian flexible packaging market is the fastest growing market globally and

Uflex by virtue of its leadership position is best placed to benefit from this

upside.

Uflex’s revenue growth and margin expansion are expected to leapfrog on the

back of its innovative product portfolio. In particularly its foray into the aseptic

packaging business should help diversify revenue mix and accelerate growth.

Impressive portfolio of marquee clients provides good revenue visibility.

Uptick in volumes

30,000

40,000

50,000

60,000

70,000

80,000

90,000


Sales Volume

in MT


Revenue growth in the packaging product business

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

21.0%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500


Total Sales EBITDA margin (RHS)

Rs in cr




Fast paced growth of the flexible packaging industry puts Uflex in a sweet

spot.

The Indian packaging industry (valued at over USD 32 Bn in 2015) is one of the

fastest growing markets and is expected to become the fourth-largest packaging

market in the world. Within packaging, the flexible plastic packaging segment is

the fastest-growing, clocking a CAGR of 16.6% (during the last five years)

driven by strong growth of the Indian retail market and other end-users

(including the pharmaceutical and processed food industry). This stupendous

growth can be attributed to:

Changing lifestyle and consumer trends towards packaging food.

Increase in disposable income

Improving shelf life due to packaging

Rising population

India’s per capita annual packaging expenditure was US$20 in 2011, which is

significantly lower than the top 20 market average of US$347.6 representing a

huge latent potential. We expect the overall packaging industry in India to reach

~USD 73 Bn by 2020 driven by faster growth of the flexible packaging (25%

CAGR) and rigid packaging (15 % CAGR) segments.

Uflex with its innovation focus and leadership position is best placed to benefit

from it

Global penetration of packaging

Rest of world, 80%

Brazil15%

Russia7%

Others 32%

Indonesia18%

India27%Emerging

market, 20%

Source: PCI, Ventura Research



Innovative product to leapfrog revenue growth and margin expansion.

Uflex has been at the forefront of innovation and in the past has added several

feathers to its cap viz 3D bags, flexi tubes, High Barrier Laminate for Packaging

Snacks etc. This innovation has been the fulcrum of its growth story. Going forth

game changing innovations are expected to consolidate its leadership position

and create new business opportunities for the company.

Premium shower proof bag for building materials is a potential game

changer

Uflex won the Global Dupont Packaging Innovation Silver Award 2015 for the

‘Safe Pack Bag’ for packaging building materials. This nano technology based

innovation should find usage in retain packaging of cement and should help

eliminate high levels of wastages and consequent pollution.This could become a

potential game changer for Uflex should the industry embrace this innovative

product.

Besides the shower proof bag, Uflex’s flexi tubes division has several innovative

products to its credit viz Innolok™ Pouches, Slider Zipper Pouches (for powder

and granules), 4D Pouches, Centre sealed etc. These innovations have helped

Uflex win repeat orders from marquee clients.

The recent innovations with the value added features like the holographic effect,

lens on front panel, anti-counterfeiting, reverse printing, dual barrier etc are

expected to propel Uflex’s hold in the cosmetics and pharmaceutical markets

which provide it with premium pricing power (over the traditional markets). This

constant endeavor to add value has resulted in Uflex reporting higher EBITDA

margins ( ~20%) than its peers.

Foray into Asceptic packaging to drive the next leg of growth

Uflex is setting up a Rs 550 crore Asceptic Packaging Material Project for

packing liquids at Sanand, Gujarat. Global major Tetra Packaging is the only

player currently operating in this space in India. We believe that Uflex’s foray

into this segment should be well received by the end user industry considering

Uflex’s reputation for offering quality products. Besides having dual vendors

always works well for the end user industry.

The facility is expected to be operational by mid 2017 and has a capacity of

seven billion packs per year (for liquid products such as energy drinks, milk and

juices). We estimate that ~90% of the output will be consumed by the domestic

market and should enjoy high margins (20-25%) due to sparse competition.



Impressive portfolio of marquee clients provides good revenue visibility.

Stable operations of the film business

Intense global competition and a marked slowdown in European demand are

expected to lead to the packaging film business (contributing ~58% of the total

revenues and ~79% of the total volume) reporting muted growth. However

revenues are expected to grow at a dismal rate of 0.1% over the same period

due to muted pricing. With a current utilization of ~72% there is adequate

capacity to manage future growth and hence no major additions to its 3,37,000

tpa capacity are planned.

Marquee clients to drive future growth




The packaging film business is spread across different geographies to cater to

domestic and international demand.

Muted volume growth for packaging film business

215

220

225

230

235

240

245

250

255

260

265

FY13 FY14 FY15 FY16(E) FY17(E) FY18(E)

Packaging Film volume

'000 MT


Geographical diversification of manufacturing facilities


- 10 - Tuesday, 05th

April 2016


However margins set to expand While revenues are expected to decline due to a fall in the unit realizations,

margins are expected to improve due to a larger fall in the input crude prices

and improving working capital cycle. The prices of PET chips which were highly

volatile over the past few years are also expected to stabilize and as a result we

expect the EBITDA margin to improve by 300bps from 10.9% in FY15 to 13.9%

in FY18.

.

EBITDA per ton expected to improve significantly

5

8

10

13

15

18

20

23

25

2,900

3,000

3,100

3,200

3,300

3,400

3,500

3,600

3,700

3,800


Total Sales

Rs cr '000 Rs / ton


Wide variation in prices have had a serious impact on margins

40

50

60

70

80

90

100

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

PET CHIPS

Rs /kg



April 2016


Financial Performance

The company reported a marginal decline in its topline numbers during Q3

FY16. Net sales declined by 2.0% YoY to Rs 1,498 cr from 1,530 cr in Q3 FY15

due to a fall in raw material prices which was partially passed to the customers.

However EBITDA margins improved marginally by 0.8% YoY to Rs 186.8 cr led

by a decrease in raw material costs. The operating margin also improved by

40bps YoY to 12.5% from 12.1%. The PAT jumped by 38.4% YoY to Rs 78.6 cr

due on account of a lower provision for tax.

In FY15, Uflex’s net sales stood at Rs 6,180 cr, registering a growth of 5.4%

YoY. Its EBITDA rose by 7% YoY to Rs 731.6 cr, while margins improved

marginally by 10 bps YoY to 11.8%. PAT grew by 27.6% YoY to Rs 251 cr on

the back of a reduction in finance cost.

Consolidated Quarterly Financial Performance (Rs crores)

Description Q3FY16 Q3FY15 FY15 FY14

Net Sales 1498.1 1529.8 6180.3 5863.3

Growth (%) -2.07 5.41

Total expenditure 1311.3 1344.5 5448.7 5179.6

EBITDA 186.8 185.3 731.6 683.6

Margin (%) 12.5 12.1 11.8 11.7

Depreciation 71.7 70.6 279.4 267.1

EBIT (Ex. OI) 115.1 114.7 452.2 416.6

Non-Operating Income 11.7 3.5 16.6 28.6

EBIT 126.8 118.2 468.8 445.2

Margin (%) 8.5 7.7 7.6 7.6

Finance Cost 47.0 46.2 186.9 233.3

Exceptional Items 0.0 0.0 0.0 0.0

PBT 79.7 72.0 281.9 211.9

Margin (%) 5.3 4.7 4.6 3.6

Provision for Tax 1.2 15.3 30.9 15.1

Profit after Tax 78.6 56.8 251.0 196.7

Margin (%) 5.2 3.7 4.1 3.4



April 2016


Financial Outlook

With product innovation across different packaging products and an improving

product mix in favor of value added products (proof bags, aseptic packs), the

revenue growth trajectory should continue. We expect sales to grow at a CAGR

of 7.4% from Rs 6,180 cr in FY 15 to 7,655 cr in FY 18 while net consolidated

earnings are expected to grow at a CAGR of 23.5% to Rs 472.3 cr over the

same period. The EBITDA and PAT margins are expected to reach 14.3% and

6.2% respectively by FY18.

Strong business growth on the cards

0%

5%

10%

15%

20%

25%

30%

35%

-

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

8,000.0

9,000.0

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Net Sales EBITDA Margin (RHS) PAT Margin (RHS)

Rs in cr


Return ratios expected to improve

5%

10%

15%

20%

25%

30%

35%

40%


RoCE RoE


Working capital set to improve

20

30

40

50

60

70

80

90


Creditor days Debtor Days Inventory days

No of days


Improving solvency ratios

-

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

-

1

2

3

4

5

6

7


Interest coverage Debt Equity (RHS)

No of times No of times



April 2016


Valuation

Uflex’s stock quoting at a CMP of Rs 172 (0.4 P/BV) is extremely undervalued.

However we believe that Uflex’s business is on a firm wicket and given the

compelling fundamentals the stock warrants a re-rating. We believe that the re-

rating will pan out as the market takes cognizance of the growth triggers viz

i. Strong growth prospects of the packaging industry.

ii. Foray into aseptic packaging which is the next level of growth

iii. Strong revenue visibility given its marquee clients

iv. Concrete steps being taken to improve the overall profitability

v. Constant innovation through which it is unlocking new business

opportunities and consolidating its leadership position in the packaging

industry.

We have valued the company using the Sum of the parts (SOTP) methodology

and ascribe a value of Rs 402 per share. We have valued the films business at

an EV/EBITDA of 3.5X FY 18 and the packaging business at an EV/EBITDA of

4.6X FY18. This price objective represents a potential upside of 134% over the

next 18 months from the CMP of Rs 172. Based on above we recommend a

BUY.

We believe that further value unlocking could unfold post demerger of the two businesses. However we have not factored this in our valuation model and represents an upside tick to our estimates .

SOTP valuation table

Uflex SOTP Valuation Basis Multiple EV ( Rs in cr)

Film Business FY18E EBITDA - Rs 518 cr 3.5 X 1813.7

Packaging Business FY18E EBITDA - Rs 575 cr 4.6 X 2644.4

Total EV 4,458.2

Less: FY18 Debt (2,037.7)

Add: FY18 Cash 479.8

Market Capitalisation 2,900.3

No of shares outstanding 7.2

Total value per share 401.7

CMP 172.0

Potential upside 134%



April 2016


1- Yr Fwd P/B Band

0

50

100

150

200

250

300

Ma

r-12

Ma

r-13

Ma

r-14

Ma

r-15

Ma

r-16

CMP 0.1X 0.2X 0.3X 0.4X 0.5X


1- Yr Fwd P/E Band

0

50

100

150

200

250

300

Mar-

12

Mar-

13

Mar-

14

Mar-

15

Mar-

16

CMP 2X 3X 4X 5X 6X


1- Yr Fwd EV/EBITDA Band

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Ma

r-1

2

Ma

r-1

3

Ma

r-1

4

Ma

r-1

5

Ma

r-1

6

EV 3X 3.5X 4X 4.5X 5X



April 2016


Peer comparison ( Rs in crores)

Y/E March Sales EBITDA PAT

EBITDA

Margin (%)

PAT

Margin(%) ROE(%) P/E P/BV EV/EBITDA

Uflex Ltd

2015 6180.3 731.6 251.0 11.8 4.1 8.3 4.9 0.4 4.5

2016E 6504.2 841.6 277.1 12.9 4.3 8.5 4.5 0.4 3.9

2017E 6921.9 937.6 344.9 13.5 5.0 9.7 3.6 0.3 3.3

2018E 7654.8 1093.1 472.3 14.3 6.2 11.8 2.7 0.3 2.6

Cosmo Films (Films business)

2015 1646.8 104.0 27.7 6.3 1.7 7.5 16.0 1.2 8.7

2016E 1594.6 177.5 91.1 11.1 5.7 21.9 5.9 1.2 4.8

2017E 1760.0 199.6 106.1 11.3 6.0 21.5 5.0 1.0 4.2

2018E 2012.0 232.4 113.6 11.6 5.6 19.6 4.7 0.9 3.6

Essel Propack

2015 2394.6 390.8 145.0 16.3 6.1 19.5 13.9 2.5 6.8

2016E 2190.0 436.0 183.2 19.9 8.4 20.7 13.7 2.7 7.3

2017E 2396.2 491.4 221.4 20.5 9.2 21.2 11.3 2.3 6.5

2018E 2679.2 549.3 260.0 20.5 9.7 21.3 9.7 1.9 5.8

Huhtamaki PPL

2015 1311.6 119.8 68.5 9.1 5.2 14.4 19.7 2.3 10.4

2016E 2190.2 253.7 114.9 11.6 5.2 15.4 13.2 2.2 7.0

2017E 2415.0 287.9 143.6 11.9 5.9 17.2 12.2 2.0 6.2



April 2016


Financials and Projections

Y/E March, Fig in ` Cr FY15 FY16E FY17E FY18E Y/E March, Fig in ` Cr FY15 FY16E FY17E FY18E

Profit & Loss Statement Per Share Data (Rs)

Net Sales 6180.3 6504.2 6921.9 7654.8 Adj. EPS 35.3 38.4 47.8 65.4

% Chg. 5.2 6.4 10.6 Cash EPS 74.0 83.3 96.4 117.4

Total Expenditure 5448.7 5662.6 5984.4 6561.7 DPS 2.7 3.2 3.6 4.0

% Chg. 3.9 5.7 9.6 Book Value 416.5 451.1 494.5 555.1

EBDITA 731.6 841.6 937.6 1093.1 Capital, Liquidity, Returns Ratio

EBDITA Margin % 11.8 12.9 13.5 14.3 Debt / Equity (x) 0.7 0.7 0.6 0.5

Other Income 16.6 19.5 20.8 23.0 Current Ratio (x) 1.2 1.3 1.4 1.6

PBDIT 748.2 861.2 958.3 1116.1 ROE (%) 8.3 8.5 9.7 11.8

Depreciation 279.4 324.2 350.9 375.3 ROCE (%) 9.0 9.9 10.7 12.3

Interest 186.9 193.9 184.0 171.5 Dividend Yield (%) 1.6 1.8 2.1 2.3

Exceptional items 0.0 0.0 0.0 0.0 Valuation Ratio (x)

PBT 281.9 343.1 423.4 569.3 P/E 4.9 4.5 3.6 2.7

Tax Provisions 30.9 66.0 78.5 97.0 P/BV 0.4 0.4 0.3 0.3

Reported PAT 251.0 277.1 344.9 472.3 EV/Sales 0.5 0.5 0.4 0.4

Minority Interest -3.7 0.0 0.0 0.0 EV/EBIDTA 4.5 3.9 3.3 2.6

PAT 254.7 277.1 344.9 472.3 Efficiency Ratio (x)

PAT Margin (%) 4.1 4.3 5.0 6.2 Inventory (days) 39.0 40.9 41.2 41.6

Other opr Exp / Sales (%) 0.0 0.0 0.0 0.0 Debtors (days) 79.0 82.1 80.3 79.6

Tax Rate (%) 14.8 18.0 18.0 18.0 Creditors (days) 53.8 49.7 48.1 44.9

Balance Sheet Cash Flow Statement

Share Capital 72.2 72.2 72.2 72.2 Profit Before Tax 286.4 343.1 423.4 569.3

Reserves & Surplus 2935.5 3184.8 3498.4 3936.0 Depreciation 279.4 324.2 350.9 375.3

Minority Interest 0.7 0.7 0.7 0.7 Working Capital Changes -271.6 -157.3 -131.7 -207.7

Long Term Borrowings 1006.5 978.7 937.1 881.6 Others 209.4 131.7 107.3 68.6

Deferred Tax Liability 120.1 124.3 126.6 121.1 Operating Cash Flow 503.6 641.7 750.0 805.5

Other Non Current Liabilities 14.0 15.6 17.5 19.6 Capital Expenditure -200.0 -392.6 -350.0 -300.0

Total Liabilities 4149.0 4376.4 4652.5 5031.1 Other Investment Activities 0.4 0.4 0.4 0.4

Gross Block 4978.2 5403.2 5753.2 6053.2 Cash Flow from Investing -199.5 -392.2 -349.6 -299.6

Less: Acc. Depreciation -1738.3 -2062.5 -2413.5 -2788.8 Changes in Share Capital 0.0 0.0 0.0 0.0

Net Block 3239.8 3340.7 3339.7 3264.4 Changes in Borrowings -111.2 -50.0 -75.0 -100.0

Capital Work in Progress 32.4 0.0 0.0 0.0 Dividend and Interest -208.0 -221.6 -215.3 -206.3

Non Current Investments 139.9 140.0 140.2 140.3 Cash Flow from Financing -319.3 -271.6 -290.3 -306.3

Net Current Assets 575.0 725.7 994.2 1439.0 Net Change in Cash -15.2 -22.1 110.2 199.6

Long term Loans & Advances 161.8 169.9 178.4 187.3 Opening Cash Balance 207.4 192.2 170.0 280.2

Total Assets 4149.0 4376.3 4652.5 5031.2 Closing Cash Balance 192.2 170.0 280.2 479.8


April 2016


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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 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. And 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 accepted 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 VSL, its associates, 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. 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The opinions and projections expressed herein are entirely those of the author and are given as part of the normal research activity of VSL 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. 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 Securities Market. Ventura Securities Limited

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