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Result Update

May 22, 2012


Rating matrix
Rating Target Target Period Potential Upside : : : : Hold | 21 12 months 10%

Alok Industries (ALOTEX)


| 19
WHATS CHANGED
PRICE TARGET ........................................................................... Changed from | 25 to | 21
FY13E 11,112 2,734 519 FY14E 13,418 3,166 739

Key Financials
(| Crore) Net Sales EBITDA Net Profit FY11 6,376 1,750 404 FY12E 8,901 2,559 381

EPS (FY13E) ............................................................................. Changed from | 7.2 to | 6.1 EPS (FY14E) ............................................................................................Introduced at | 8.2 RATING ....................................................................................... Changed from Buy to Hold

Valuation summary
FY11 PE (x) Target PE (x) EV to EBITDA(x) Price to book (x) RoNW (%) RoCE (%) 3.7 4.0 5.7 0.5 13.1 9.7 FY12E 4.1 4.5 4.5 0.4 10.4 12.6 FY13E 3.1 3.4 4.5 0.4 12.7 12.0 FY14E 2.3 2.5 3.9 0.4 15.5 12.9

And the dilution continues


Alok Industries (Alok) Q4FY12 numbers were broadly in line with our estimates with operating margins beating our estimates by over 200 bps. Alok reported one of the slowest growth in sales in over four years on the back of lower domestic sales. While exports grew 40.3% YoY (on the back of rupee depreciation) to | 814.9 crore, domestic sales grew only 10.3% YoY to | 1,780.5 crore. Going forward, we expect the companys revenues to grow at a lower pace as compared to the last four years as the company has not planned any major capacity addition and also due to the impact of a higher base. While we expect revenues to grow at a CAGR of 22.8% during FY12-14E, PAT is expected to increase at a CAGR of 39.3% on the back of savings in interest costs. Considering the delay in land monetisation and the ongoing dilution, we have downgraded Alok from BUY to HOLD. Real estate monetisation: A small beginning Alok has closed two deals (a) eight floors out of 20 floors of Peninsula Business Park, Lower Parel have been sold and the token consideration for the same has been received and (b) three floors out of eight in Ashford Centre, Lower Parel have been leased and the earnest money deposits have also been received. Dilution dilemma The Board has approved a preferential allotment of up to 2.75 crore equity shares and up to five crore warrants to promoters/promoter group company. In the past also, the promoters have diluted their stake to fund the capex requirements. While the CAGR in revenues and equity during FY07-12E has been ~45%, profits have only grown at a CAGR of 17.6% due to the burgeoning debt, which led to higher interest outgo.

Stock data
Market Capitalisation Debt (Dec-11) Cash (Dec-11) EV 52 week H/L (|) Equity capital Face value MF Holding (%) FII Holding (%) | 1507 crore | 11494 crore | 1578 crore | 11423 crore 29 / 16 | 826.3 crore | 10 11.3 15.2

Price movement
6,000 5,500 5,000 4,500 4,000 Jun-11 Aug-11 Nov-11 Feb-12 Nifty (L.H.S) Price (R.H.S) 35 30 25 20 15 May-12

Valuation
The stock is likely to witness a multiple re-rating when the company reduces its debt through land monetisation and, thereby, saves on interest expenses. We have valued the stock at | 21 (based on an average arrived at by assigning a multiple of 0.4x FY14E book value and 2.5x FY14E EPS). Considering the ongoing equity dilution and high debt levels, we remain cautious on Alok. Therefore, we have, downgraded Alok Industries from BUY to HOLD with a revised target price of | 21.
Exhibit 1: Financial Performance
(| Crore) Net Sales EBITDA Margin (%) Depreciation Interest Other Income Reported PAT EPS (|) Q4FY12 2,595.4 28.1 173.6 334.6 8.7 283.5 3.4 Q4FY12E 2,753.6 26.0 174.7 276.4 2.7 279.8 3.6 Q4FY11 2,195.9 25.4 160.0 166.7 24.3 159.5 2.0 Q3FY12 2,386.7 26.9 187.5 271.3 2.0 (36.6) (0.5) QoQ(Ch %) 8.7 117 bps (7.4) 23.3 330.8 LP LP YoY(Ch%) 18.2 266 bps 8.5 100.7 (64.4) 77.7 69.5

Analysts name
Bharat Chhoda bharat.chhoda@icicisecurities.com Dhvani Modi dhvani.bavishi@icicisecurities.com

Source: Company, ICICIdirect.com Research

Note: LP -Loss to Profit

ICICI Securities Ltd | Retail Equity Research

Q4FY12 Result Highlights Aloks Q4FY12 topline was marginally lower than our estimate. The company reported a topline of | 2,595.4 crore, up 18.2% YoY as against our estimate of | 2,753.6 crore The operational performance of the company came as a positive surprise. The operating margin increased by 266 bps YoY on the back of reduced other expenditure For nine months ended December 2011, Alok had provided for MTM on forex loans to the tune of | 358.1 crore. However, since the rupee appreciated in Q4FY12, the company wrote back provisions worth | 227.6 crore On the back of the write-back, the company reported a strong growth in PAT despite doubling of interest cost. Alok reported a PAT of | 283.5 crore, up 77.7% YoY (I-direct estimate: | 279.8 crore)

Exhibit 2: Topline growth slows down for first time in over four years
Alok reported the slowest ever topline growth for the first time in over four years. The woven fabric segment, garments segment and polyester yarn segment grew by 31.7%, 73.8% and 52.2% YoY, respectively. However, the yarn segment revenues de-grew by 66.9% YoY

3,000 2,500 2,000 | crore 1,500 1,000 500 1,471 1,099 1,452 1,609 2,196 1,645 2,128 2,387

2,595

Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Sales

Source: Company, ICICIdirect.com Research

Exhibit 3: Exports performance trend


900 800 700 600 500 400 300 200 100 0 41.3 608 436 41.7 606 595 37.0 581 602 36.6 770 815 45 40 32.3 31.4 35 30 26.5 25 20 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Exports As a % of Sales (RHS) %

While exports continued to grow in absolute terms, the share in the overall sales mix has been on the decline

39.7

740 34.8

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

| crore

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Exhibit 4: Polyester segment continues to gain share in revenue mix


100 90 80 70 60 50 40 30 20 10 2 16 16 5 32 12

26 17 15

13 26 14

17 25 12

60 37

44

45

49

Q4FY08 Apparel Fabric

Q4FY09 Home Textile

Q4FY10 POY & Texturising Yarn

Q4FY11 Cotton Spinning

Q4FY12 Garments

Source: Company, ICICIdirect.com Research

Exhibit 5: EBITDA margin trend


Despite the increasing share of the polyester segment, the operating margin rose by 276 bps on the back of reduced other expenditure

32 30 28
%

31.7 29.1 29.7 28.6 27.5 25.9 25.4 26.9 24.6 28.1

26 24 22
Q4FY10 Q1FY11 Q2FY11 Q3FY11

23.6

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Q4FY12

FY13E
Q3FY12 47.0 3.1 23.0

EBITDA Margin

Source: Company, ICICIdirect.com Research

Exhibit 6: Costs as a percentage of sales


Particulars Raw Material Cost Employee Cost Other Expenses Q1FY11 46.7 3.8 19.8 Q2FY11 52.2 3.1 16.1 Q3FY11 53.4 3.5 17.3 Q4FY11 56.9 2.6 15.1 Q1FY12 49.0 3.3 20.2 Q2FY12 45.8 2.9 19.6 Q4FY12 54.4 2.5 15.0

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

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FY14E

Alok had incurred a loss of | 36.6 crore in Q3FY12 due to MTM provisions made. Considering that the rupee appreciated in Q4FY12 over Q3FY12, the company wrote back provisions to the tune of | 227.6 crore, resulting in a strong PAT growth in Q4FY12

Exhibit 7: Net profit trend


300 250 200 | crore 150 100 50 0 -50 -100 Net Profit Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 (36.6) Q4FY12 95.3 46.5 79.8 89.8 159.5 74.4 283.5

57.8

Source: Company, ICICIdirect.com Research

Exhibit 8: Segmental analysis (Quarterly)


Q4FY12 Segment Cotton Spinning Raw Cotton Woven Fabric Knitted Fabric Home Textiles Terry Towel Polyester Chips POY & Texturising Garments Handkerchief Unit MT MT Lac Mtrs MT Pcs Pcs MT MT Pcs Pcs Volume 3,046 5,696 1,093 1,900 2,443,777 4,133,792 22,019 68,418 3,103,977 985,147 Value | crore 54.4 54.9 1,150.6 57.2 212.6 47.8 177.9 653.2 63.2 4.3 Realisation |/unit 178,668 96,439 10,529,326 301,249 870 116 80,773 95,474 203 44 502 21,597 808 1,986 2,969,185 5,078,779 5,834 47,024 1,967,923 2,097,735 Volume Q4FY11 Value | crore 12.5 353.7 913.2 67.8 212.8 37.2 53.9 480.7 32.9 4.8 Realisation |/unit 248,670 163,756 11,304,003 341,197 717 73 92,464 102,221 167 23 507.0 (73.6) 35.3 (4.3) (17.7) (18.6) 277.4 45.5 57.7 (53.0) 336.1 (84.5) 26.0 (15.5) (0.1) 28.7 229.7 35.9 91.9 (8.8) (28.2) (41.1) (6.9) (11.7) 21.3 58.1 (12.6) (6.6) 21.7 94.1 Volume % Change Value Realisation

Source: Company, ICICIdirect.com Research

Exhibit 9: Segmental analysis (Annual)


FY12 Segment Cotton Spinning Raw Cotton Woven Fabric Knitted Fabric Home Textiles Terry Towel Polyester Chips POY & Texturising Garments Handkerchief Unit MT MT Lac Mtrs MT Pcs Pcs MT MT Pcs Pcs Volume 6,870 10,742 3,446 8,305 10,471,091 17,154,176 85,183 230,979 8,383,584 5,922,151 Value | crore 145.6 117.7 3,669.6 268.2 916.5 160.0 666.9 2,284.5 191.2 20.8 Realisation |/unit 211,907 109,532 10,650,008 322,921 875 93 78,295 98,905 228 35 6,070 31,151 2,650 8,613 12,023,432 13,561,694 23,204 179,057 7,986,278 9,370,892 Volume FY11 Value | crore 103.5 429.8 2,718.8 241.6 889.5 93.7 145.3 1,542.8 138.0 21.4 Realisation |/unit 170,472 137,968 10,258,264 280,443 740 69 62,636 86,165 173 23 13.2 (65.5) 30.0 (3.6) (12.9) 26.5 267.1 29.0 5.0 (36.8) 40.7 (72.6) 35.0 11.0 3.0 70.8 358.9 48.1 38.5 (2.9) 24.3 (20.6) 3.8 15.1 18.3 35.0 25.0 14.8 31.9 53.7 Volume % Change Value Realisation

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

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Exhibit 10: Revised estimates


FY13E Particulars (| crore) Sales Operating Profit Margin (%) Net Profit EPS (|) Earlier 11,012.8 2,710.2 24.6 568.8 7.2 Revised 11,112.0 2,734.1 24.6 518.6 6.1 % Change 0.9 0.9 0 bps -8.8 -15.9 FY14E Introduced 13,417.7 3,166.3 23.6 738.9 8.2

Source: Company, ICICIdirect.com Research

Valuation
The stock is likely to witness a multiple re-rating when the company reduces its debt through land monetisation and, thereby, saves on interest expenses. We have valued the stock at | 21 (based on an average arrived at by assigning a multiple of 0.4x FY14E book value and 2.5x FY14E EPS). Considering the ongoing equity dilution and high debt levels, we remain cautious on Alok. Therefore, we have downgraded Alok Industries from BUY to HOLD with a revised target price of | 21.

ICICI Securities Ltd | Retail Equity Research

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Financial summary
Profit and loss statement
(Year-end March) Total operating Income Growth (%) Cost of Goods Sold Employee Expenses Selling Expenses Administrative Expenses Miscellaneous Expenses Total Operating Expenditure EBITDA Growth (%) Depreciation EBIT Interest Other Income PBT Total Tax PAT Growth (%) EPS (|) FY11 6,388.4 48.3 3,997.7 199.8 119.9 321.1 4,638.5 1,749.9 44.8 518.8 1,231.1 654.4 6.4 583.2 178.8 404.4 63.5 5.1 FY12E 8,900.9 39.6 5,401.4 267.3 185.0 488.1 6,341.8 2,559.1 46.2 713.4 1,845.6 1,149.6 65.7 640.5 260.0 380.5 (5.9) 4.6 FY13E 11,112.0 24.8 6,911.1 355.6 255.6 855.6 8,377.9 2,734.1 6.8 877.4 1,856.7 1,104.9 22.2 774.0 255.4 518.6 36.3 6.1 (| Crore) FY14E 13,417.7 20.8 8,332.7 496.5 348.9 1,073.4 10,251.4 3,166.3 15.8 974.7 2,191.6 1,118.2 29.5 1,102.9 363.9 738.9 42.5 8.2

Cash flow statement


(Year-end March) Profit before Tax Add: Depreciation (Inc)/dec in Current Assets Inc/(dec) in CL and Provisions Taxes Paid Others CF from operating activities (Inc)/dec in Investments (Inc)/dec in Fixed Assets Others CF from investing activities Issue/(Buy back) of Equity Inc/(dec) in loan funds Dividend paid & dividend tax Others CF from financing activities Net Cash flow Opening Cash Margin money deposits Closing Cash FY11 583.2 518.8 -1,018.6 517.3 -117.9 652.6 1,135.5 63.7 -1,857.1 -275.2 -2,068.6 1,144.3 -23.0 -751.9 369.4 -563.7 673.4 1,031.6 1,141.2 FY12E 640.5 713.4 -2,027.3 405.3 -260.0 1,149.6 621.5 -12.8 -1,156.0 0.0 -1,168.8 38.49 1,840.8 -24.8 -1,149.6 704.9 157.7 109.7 1,310.9 1,578.2 FY13E 774.0 877.4 -1,747.4 165.0 -193.5 1,104.9 980.4 -27.0 -431.1 0.0 -458.0 105.00 136.3 -34.2 -1,104.9 -897.8 -375.4 267.3 1,145.7 1,037.6 (| Crore) FY14E 1,102.9 974.7 -1,717.6 110.0 -275.7 1,118.2 1,312.5 -103.5 -249.9 0.0 -353.3 794.2 -36.2 -1,118.2 -360.2 599.0 -108.1 1,147.0 1,637.9

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

Balance sheet
(Year-end March) Liabilities Equity Capital Reserve and Surplus Total Shareholders funds Total Debt Deferred Tax Liability Minority Interest / Others Total Liabilities Assets Gross Block Less: Acc Depreciation Net Block Capital WIP Total Fixed Assets Investments Inventory Debtors Loans and Advances Other Current Assets Cash Total Current Assets Creditors Provisions Total Current Liabilities Net Current Assets Others Assets Application of Funds FY11 787.8 2,309.8 3,097.6 9,653.6 507.7 13,258.8 FY12E 826.3 2,828.2 3,654.5 11,494.3 637.7 15,786.5 FY13E 853.8 3,217.5 4,071.2 11,630.6 699.7 16,401.5 (| Crore) FY14E 903.8 3,864.1 4,767.8 12,424.9 787.9 17,980.6

Key ratios
(Year-end March) Per share data (|) EPS Cash EPS BV DPS Cash Per Share Operating Ratios EBITDA Margin (%) PBT Margin (%) PAT Margin (%) Inventory days Debtor days Creditor days Return Ratios (%) RoE RoCE RoIC Valuation Ratios (x) P/E EV / EBITDA EV / Net Sales Market Cap / Sales Price to Book Value Solvency Ratios Debt/EBITDA Debt / Equity Current Ratio Quick Ratio FY11 5.1 11.7 39.3 0.02 14.5 27.4 9.1 6.3 114.6 99.6 53.2 13.1 9.7 3.5 3.7 5.7 1.6 0.2 0.5 5.5 3.1 5.6 3.6 FY12E 4.6 13.2 44.2 0.03 19.1 28.8 7.2 4.3 127.8 94.9 54.8 10.4 12.6 2.8 4.1 4.5 1.3 0.2 0.4 4.5 3.1 5.7 3.5 FY13E 6.1 16.4 47.1 0.04 12.2 24.6 7.0 4.7 124.1 95.6 49.3 12.7 12.0 3.6 3.1 4.5 1.1 0.1 0.4 4.3 2.9 5.9 3.5 FY14E 8.2 19.0 52.8 0.04 18.1 23.6 8.2 5.5 125.0 98.6 43.8 15.5 12.9 4.8 2.3 3.9 0.9 0.1 0.4 3.9 2.6 6.9 4.1

9,014.3 1,587.1 7,427.2 1,061.2 8,488.4 167.2 2,002.6 1,740.2 727.5 1,141.2 5,611.6 862.8 145.3 1,008.1 4,603.5 (0.2) 13,258.8

10,317.4 2,300.6 8,016.8 914.2 8,931.0 179.9 3,115.3 2,314.2 1,068.1 1,578.2 8,075.9 1,335.1 70.0 1,405.1 6,670.7 4.9 15,786.5

10,967.4 3,177.9 7,789.4 695.2 8,484.6 206.9 3,778.1 2,911.3 1,555.7 1,037.6 9,282.6 1,500.1 75.0 1,575.1 7,707.5 2.4 16,401.5

11,467.4 4,152.7 7,314.7 445.1 7,759.8 310.4 4,595.6 3,622.8 1,744.3 1,637.9 11,600.5 1,610.1 80.0 1,690.1 9,910.4 17,980.6

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

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ICICIdirect.com coverage universe (Textiles)


Alok Industries Idirect Code ALOTEX MCap 1507 Sales (| Crore) CMP (|) Target (|) Upside (%) CMP (|) Target (|) MCap 3256 Upside (%) CMP (|) Target (|) MCap 820 Upside (%) CMP (|) Target (|) MCap 743 Upside (%) CMP (|) Target (|) MCap 314 Upside (%) CMP (|) Target (|) MCap 3406 Upside (%) CMP (|) Target (|) MCap 1113 Upside (%) CMP (|) Target (|) MCap 1352 Upside (%) Vardhman Textiles Idirect Code MAHSPI Rupa & Company Idirect Code RUPACO Page Industries Idirect Code PAGIND Lovable Lingerie Idirect Code LOVLIN Kewal Kiran Clothing Idirect Code KEWKIR JBF Industries Idirect Code JBFIND Bombay Rayon Fashions Idirect Code BOMRAY 19 21 10 242 244 1 114 120 6 603 611 1 314 350 11 3054 3106 2 140 Unrated 213 229 8 FY12E FY13E FY14E FY11 FY12E FY13E FY11 FY12E FY13E FY12E FY13E FY14E FY12E FY13E FY14E FY12E FY13E FY14E FY12E FY13E FY14E FY12E FY13E FY14E 8,900.9 11,112.0 13,417.7 2,254.8 2,666.4 3,386.3 6,465.6 7,040.1 8,183.1 301.9 364.9 436.6 145.7 175.4 209.9 686.0 892.0 1,099.6 728.1 835.0 948.6 4,640.7 5,318.6 6,242.2 EPS (|) 4.6 6.1 8.2 16.0 15.9 25.7 76.2 37.6 44.4 42.3 51.9 61.1 10.5 13.9 17.9 78.2 106.2 135.1 5.0 6.2 7.8 22.6 29.3 38.2 PE (x) 4.1 3.1 2.3 15.2 15.2 9.4 1.5 3.0 2.6 14.3 11.6 9.9 29.9 22.6 17.5 39.1 28.8 22.6 27.7 22.6 18.0 9.4 7.3 5.6 EV/EBITDA (x) 4.5 4.5 3.9 11.3 10.3 8.7 2.5 4.8 5.4 8.9 6.9 5.7 23.5 18.3 14.2 23.8 17.9 14.2 15.4 13.2 10.9 6.4 4.4 4.1 RoNW(%) 10.4 12.7 15.5 8.5 7.5 10.3 47.5 17.4 17.7 22.5 23.6 23.4 11.4 13.5 15.4 52.8 55.3 56.2 20.5 21.3 22.6 7.2 8.8 10.7 RoCE (%) 12.6 12.0 12.9 7.0 7.3 8.7 30.7 16.8 13.2 27.3 29.2 29.3 14.4 16.5 18.4 39.0 43.5 47.0 20.2 21.5 23.8 7.7 8.9 9.8

ICICI Securities Ltd | Retail Equity Research

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Exhibit 11: Recommendation History


35

30

25

20

15 Jun-11 Jul-11 Aug-11 Oct-11 Price Nov-11 Jan-12 Feb-12 Apr-12 May-12

Target Price

Source: Company, ICICIdirect.com Research

Exhibit 12: Recent Releases


Date 5-Jul-11 2-Aug-11 5-Oct-11 1-Nov-11 6-Jan-12 16-Feb-12 4-Apr-12 Event Q1FY12 Preview Q1FY12 Result Update Q2FY12 Preview Q2FY12 Result Update Q3FY12 Preview Q3FY12 Result Update Q4FY12 Preview CMP 26 24 18 21 18 22 21 Target Price 28 28 28 28 28 25 25 Rating HOLD BUY BUY BUY BUY BUY BUY

Source: Company, ICICIdirect.com Research

Exhibit 13: The road ahead...


16,000 12,000 | crore 8,000 11,112 8,901 6,376 2,559 2,734 4,000 FY11 6.1 5.1 4.6 13,418 6 | 3,166 3 739 FY14E EPS (RHS) 8.2 9

1,750

404

381

519

FY12E

FY13E

Net Sales

EBITDA

Net Profit

Source: Company, ICICIdirect.com Research

Exhibit 14: Shareholding pattern


Shareholding (%) Promoters FIIs DIIs Public Jun-11 29.4 20.7 11.7 38.3 Sep-11 30.0 17.0 11.7 41.4 Dec-11 30.0 20.8 11.7 37.6 Mar-12 31.8 15.2 11.3 41.8

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

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RATING RATIONALE

ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more; Pankaj Pandey Head Research pankaj.pandey@icicisecurities.com ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No. 7, MIDC, Andheri (East) Mumbai 400 093 research@icicidirect.com ANALYST CERTIFICATION
We /I, Bharat Chhoda MBA (FINANCE) Dhvani Modi MBA (FINANCE) 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 personal views about any and all of 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. Analysts aren't registered as research analysts by FINRA and might not be an associated person of the ICICI Securities Inc.

Disclosures:
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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 is 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 may 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. 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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 and its affiliates might have managed or co-managed a public offering for the subject company in the preceding twelve months. ICICI Securities and affiliates might have received 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 public offerings, corporate finance, investment banking or other advisory services in a merger or specific transaction. It is confirmed that Bharat Chhoda MBA (FINANCE) Dhvani Modi MBA (FINANCE) research analysts and the authors of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months. Our research professionals are paid in part based on the profitability of ICICI Securities, which include earnings from Investment Banking and other business. ICICI Securities or its subsidiaries collectively 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. It is confirmed that Bharat Chhoda MBA (FINANCE) Dhvani Modi MBA (FINANCE) advisory board member of the companies mentioned in the report. research analysts and the authors of this report or any of their family members does not serve as an officer, director or

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