You are on page 1of 6

Wealth Research

Andhra Sugars Ltd.


BUY
Stock Relative to Sector

Sector Relative to Market

Outperform

Date

Outperform

16th January 2012

Deep value stock, an ideal play on soaring Caustic Soda prices

Stock Information

Investment arguments
One of the strongest players in the caustic soda and sugar businesses: Andhra Sugar Ltd.
(ASL), is a diversified company engaged in the production of more than 15 products, of which
caustic soda and sugar account for more than 80% of consolidated sales (for H1FY2012,
caustic soda accounted for more than 50% of the consolidated revenue and around 93% of
the consolidated PBT). The company has rarely seen any labour unrest in the last 4 decades.
In addition, the company also has 55% stake in a listed entity, JOCIL, which is one of the most
efficient manufacturer of fatty acids and soaps, catering to prominent FMCG companies like
HUL, ITC, Clariant and Asian Paints. ASL has a consistent track record for 43 years of
distributing high dividends; dividends were Rs.5/per share for FY2010 and Rs.5.50/per share
for FY2011. At the current market price, the dividend-yield is 5.2%. ASLs strong performance
is backed by the companys competitive positioning in the domestic chlor-alkali industry,
which is attributable to its large scale chlor-alkali operations, decades of business
experience, lean cost structure (considering its access to power at competitive rates) and
relatively favorable demand-supply scenario in southern India.
Higher margin from caustic soda segment boosting the overall profitability: During
FY2011, performance of the caustic soda and chemical division was affected. While turnover
of caustic soda division increased by 6%, decline in realizations and steep increase in power
tariff affected the profitability of the segment. Sales realizations declined from Rs.22,682 per
tonne in FY2010 to Rs.18,461 per tonne in FY2011. However, domestic average price of
caustic soda has increased by 39% YoY in Q1FY2012, 63% YoY in Q2FY2012 and 54% YoY in
Q3FY2012, which has improved the segment EBDITA margins and the overall PAT margins for
ASL in the current year. In H1FY2012, caustic soda accounted for more than 50% of the
consolidated revenues and around 93% of the consolidated PBT. Going ahead, caustic soda
prices being firm in Q3FY2012, we expect higher revenue and contribution from caustic soda
segment. During FY2011, the 400 TPD Saggonda plant has been upgraded with energy
efficient technology, which will bring down the power cost going forward.
ASL sugar division to benefit from favourable dynamics in Andhra Pradesh: ASL has been
an efficient player in the sugar sector and has gradually diversified into chemicals and power
generation. Over the last few years, there has been a rise of 11.5% in the area covered under
sugarcane cultivation in Andhra Pradesh from 1.57 lakh hectare to 1.75 lakh hectare. The
presence of its sugar operations in the fertile West Godavari belt of AP has resulted in healthy
recovery rates of around 11% compared to 9.3% in UP, in a normal year of cane cultivation.
This makes the cost of producing sugar cheaper in AP compared to UP. We expect cane
cultivation to increase in the current season and cost of procurement to remain under control
providing more stability. We expect the sugar cycle to turnaround in the next 12 months;
hence the best strategy would be buy stocks before the spin of the cycle.
Rich assets and investments in listed and unlisted subsidiaries: The company holds rich
assets & investments with diversified stakes in various listed and unlisted entities holding
around 55% stake in the efficient caustic soda manufacturer, JOCIL Ltd. valued at Rs.50 crore
(Market Cap of Rs.90 crore), around 28.98% stake in Andhra Petro which is valued at Rs.58
crore, and holds 1 crore shares in unlisted entity Andhra Pradesh Gas Power Corporation Ltd.
(APGPCL), which is a gas based power generating company located at Vijjeswaram in West
Godavari District for availing power that is about half the cost of power sourced from the
state electricity board. Its value we believe would be close to the market capitalization of ASL.
Risk to our view:
Any natural calamity which will hamper the supply of sugarcane, and any adverse policy
change on import duty of caustic soda could impact the profitability of the company.
Valuation and recommendation
Total investments of ASL are higher than the current market cap of Rs.280 of the company.
Also, the value of investments and replacement cost of assets is estimated to be Rs.2,000
crore, which is 4 times the enterprise value (EV) of about Rs.480 crore. ASL is an investor
friendly company, for 43 years consistently rewarding its shareholders with higher dividends;
it gave a dividend of Rs.5.50/per share for FY2011. For FY2012, the dividend is expected to
be around Rs.6, with a dividend yield of 5.2% at the current market price. We believe the
present EV of ASL at Rs.480 crore, is 1/4th the total of Investments and replacements of
assets and it does not capture the real intrinsic value of the assets of the company. Also
ASLs promoter holding is extremely fragmented with 118 individuals holding 53.27% in the
company, so making it an easy takeover target. In case it becomes a target of M&A activity,
the stock can become a multi-bagger. At the CMP of Rs.116, the stock is trading at a PE of
1.9x FY2012E EPS of Rs.60. Hence, we recommend a buy on the stock, for a target price of
Rs.160, which translates to a PE of 2.7x FY2012E EPS (consolidated) of Rs.60.

CMP (Rs.)

116.10

MKT CAP (Rs. Cr)

314

52 WK H/L

130/84.55

Target Price (Rs.)

160

Performance Rel to BSE500


-1m (%)

5.2

-3m (%)

15.3

-12m (%)

5.0

Company Information
BSE Code

590062

NSE Code

ANDHRSUGAR

EPS CY12E (Rs.)

60

P/E FY12E

1.9

Free float (Rs. cr)

157

1 Year Return (%)

7.9%

Avg. Daily volume in lakh (12m)

0.01

Shareholding Pattern (%)

Promoters

Sept-11

QoQ Chg

53.27

-0.45

Institutions

0.81

-0.11

Non-promoter corp.

7.09

-0.38

37.06

0.91

1.77

0.03

Public
Foreign Institution

Price Performance

Source: Centrum Wealth, Bloomberg

(Figures in Rs. Cr.)

Y/E MAR

Net Sales

Growth %

EBIDTA

Growth (%)

Adj. PAT

Growth %

EPS (Rs.)

2009A

7584

31.8%

154.1

15.4%

54.7

41.8%

20.2

P/E
5.7

2010A

8491

12.0%

194.2

26.0%

76.8

40.3%

28.3

4.1

2011A

8483

-0.1%

146.5

-24.6%

57.3

-25.4%

21.1

5.5

2012E

1,353

59.5%

354.8

142.2%

162.6

183.7%

60.0

1.9

Source: Company, Centrum Wealth

Jabal Patel, VP Research


Navneet Damani, Research Analyst

Centrum Broking Pvt Ltd

Analysis

One of the strongest players in the caustic soda and sugar businesses
Andhra Sugar Ltd. (ASL), is a diversified company engaged in the production of more than 15 products, of which caustic
soda and sugar account for more than 80% of consolidated sales (for H1FY2012, caustic soda accounted for more than
50% of the consolidated revenue and around 93% of the consolidated PBT). The company has rarely seen any labour
unrest in the last 4 decades. In addition, the company also has 55% stake in listed entity, JOCIL which is one of the most
efficient manufacturer of fatty acids and soaps, catering to prominent FMCG companies, like HUL, ITC, Clariant, Asian
Paints. ASL has a consistent track record for last 43 years of distributing high dividends; dividends were Rs.5/per share
for FY2010 and Rs.5.50/per share for FY2011. At the current market price, the dividend-yield is 5.2%. ASLs strong
performance is backed by the companys competitive positioning in the domestic chlor-alkali industry, which may be
attributed to its large scale chlor-alkali operations, decades of business experience, lean cost structure (considering its
access to power at competitive rates) and relatively favorable demand-supply scenario in southern India.

Higher margin from caustic soda segment boosting the overall profitability
During FY2011, performance of the caustic soda and chemical division was affected. While turnover of caustic soda
division increased by 6%, decline in realizations and steep increase in the power tariff affected profitability of the
segment. Sales realizations declined from Rs.22,682 per tonne in FY2010 to Rs.18,461 per tonne in FY2011. However,
domestic average price of caustic soda has increased by 39% YoY in Q1FY2012, 63% YoY in Q2FY2012 and 54% YoY in
Q3FY2012, which has improved the segment EBDITA margins and the overall PAT margins for ASL in the current year.
In H1FY2012, caustic soda accounted for more than 50% of the consolidated revenues and around 93% of the
consolidated PBT. Going ahead, caustic soda prices being firm in Q3FY2012, we expect higher revenue and contribution
from the caustic soda segment. During FY2011, the 400 TPD Saggonda plant has been upgraded with energy efficient
technology, which will bring down the power cost going forward.
ASL: Segmental margin of Sugar and Caustic Soda business
Caustic Soda
1900

Caustic Soda

1600
1300
1000

1/12/11

1/10/11

1/8/11

1/6/11

1/4/11

1/2/11

1/12/10

1/10/10

1/8/10

1/6/10

1/4/10

1/2/10

1/12/09

1/8/09

1/10/09

1/6/09

1/4/09

700

Source: Bloomberg/ Centrum Wealth

ASL sugar division to benefit from favourable dynamics in Andhra Pradesh


ASL has been an efficient player in the sugar sector and has gradually diversified into chemicals and power generation.
Over the last few years, there has been a rise of 11.5% in the area covered under sugarcane cultivation in Andhra
Pradesh from 1.57 lakh hectare to 1.75 lakh hectare. The presence of its sugar operations in the fertile West Godavari
belt of AP has resulted in healthy recovery rates of around 11%, compared to 9.3% in UP, despite similar cane prices in
both the states in the range of Rs.220-240 per tonne. This makes the cost of sugar production cheaper in AP compared
to UP. In 2011 ASL has seen an increase in cane crushed compared to the previous year in view of better cane
cultivation by farmers. However, sugar sales realization was lower compared to FY2010 due to depressed selling price.
We expect cane cultivation to increase in the current season and cost of procurement to remain under control, providing
more stability. We expect the sugar cycle to turnaround in next 12 months; hence the best strategy would be buy stocks
before the spin of the cycle.
The AP State Government has announced a special grant of Rs.200 a tonne of cane for farmers under 9 cooperative
sugar factories. The government is also working on a comprehensive five-year package for the sugar cane sector. The
government would encourage factories to go for co-generation, chemicals production and other value added products
to enhance value for industries and farmers.
Stable and high margin caustic soda business offset the down cycles in sugar segment
(Rs. crore)

FY2008

FY2009

FY2010

FY2011

Segment Revenues
Sugar Business

154.0

170.0

196.5

82.05

Caustic Soda

225.5

255.9

252.3

255.6

Segment PBIT
Sugar Business

-9.2

22.2

31.7

-9

Caustic Soda

61.3

76.0

95.5

62.9

Segment Margin (%)

Sugar Business

-6.0

13.1

16.1

-11.0

Caustic Soda

27.2

29.7

37.8

24.6

Centrum Broking Pvt Ltd

Sugar business of Andhra Sugar shows cyclicality in nature and is impacted by government policies on quota, levy price,
exports quota and domestic sugar prices. While the sugar business reported a loss at the segmental level during the
downturn of the economy in FY2008 and again in FY2011, the business turns around at the peak of the sugar cycle with
two digit margins.
Whereas, caustic soda is a high-margin stable business, with decent growth in revenues over last 3-4 years with strong
growth in segment margins at the peak of the cycle. Even during the slow down in the economy in FY2008, ASLs
caustic soda business reported extremely well segment margins of 27%.
Availability of cheaper power through AP Gas & Power, which is around half the cost of power sourced from the state
electricity board, helps to bring down the cost of production of caustic soda. Hence, caustic soda business provides
stability the revenue stream, mitigating the risk from fluctuation in the sugar business.
ASL: Segmental Margin of Sugar and Caustic Soda business
Segmental Margin (%)
50.0
37.8

40.0
30.0
20.0

27.2

10.0

29.7

24.6
16.1

13.1

0.0
-10.0

FY2008
-6.0

FY2009

FY2010

FY2011
-11.0

-20.0
Sugar Business

Caustic Soda

Source: Company/ Centrum Wealth

ASL has chalked out an aggressive growth strategy for coming years:
The management has a conservative approach to business and does not resort to high leverage. The company has the
right strategy for expansion which does not put any undue stress on the balance sheet and internal cash generation is
the preferred source of financing expansion activities.

Due to the advantage of economies of scale and diversification, during FY2011, the 400 TPD Saggonda plant has
been upgraded with energy efficient technology, which will bring down the power cost going forward.
Consent for establishment of poly-aluminium chloride plant has been received and the plant commenced
production in June 2011. Chlorine, which is the main raw material for this plant, will be internally sourced.
The potassium carbonate plant at Tanuku commenced commercial production in FY2011. Potassium hydroxide kye,
the main raw material for this plant is being sourced internally from ASLs plant at Kovvur. It has varied applications
in bulk drugs/ pharma industry.
Environmental clearance for its planned expansion of the caustic potash plant, hydrochloric acid plant, sodium
hypo plant, mono-chloro acetic acid plant and single superphosphate plant are received.
Land has been purchased at the Jawaharlal Nehru Pharma City, Visakhapatnam, for the production of
pharmaceuticals. Feasibility studies are under progress to identify and take a decision for production of a suitable
pharma product at this site.
ASL proposes to set up a gas based power plant at Saggonda to meet power requirements for captive consumption.
Consent for operation has been received from the state pollution control board for operating a 6,000 TCD and a 9
MW captive power plant at sugar unit III, Bhimadole. This plant will be expanded to operate at 6,000 TCD in phases.
During FY2011, export orders were executed with multinational companies in the U.S., Germany and Mexico
indicating a good market potential for Aspirin abroad. Steps have been initiated to increase the capacity of the
Aspirin Plant from the present 1,000 MT to 2,000 MT per annum.

These projects are expected to strengthen the company's product range, accelerate growth and improve revenue
generation.

Financial Performance 5 fold jump in net profit in H1FY2012


The company posted a net profit of Rs.55.93 crore on revenue of Rs.848.34 crore during FY2011, on a consolidated
basis.

For H1FY2012, the company posted a robust set of numbers with net sales registering a 78.3% YoY increase to
Rs.375.8 crore.
Net profit has jumped 5 fold for H1FY2012 to Rs.47.81 crore compared to Rs.10.55 crore in H1FY2011 on the back
of improved off-take and realizations witnessed by the key divisions of the company (namely sugar, caustic soda,
caustic potash, sulphuric acid). Its EPS increased to Rs.17.64 in H1FY2012, as compared to Rs.3.89 posted during
the corresponding period last year.

The improved performance was attributable to the caustic soda and industrial chemicals division. The EBIT margins of
both these segments stood at 31% and 26%, respectively in H1FY2012, as compared to 17% and 17%, respectively
during H1FY2011.

Centrum Broking Pvt Ltd

Rich assets and investments in listed and unlisted subsidiaries


The company holds rich assets & investments with diversified stake in various listed and unlisted entities holding
around 55% stake in the efficient caustic soda manufacturer, JOCIL Ltd. valued at Rs.50 crore (Market Cap of Rs.90
crore), around 28.98% stake in Andhra Petro which is valued at Rs.58 crore, and holds 1 crore shares in unlisted entity
Andhra Pradesh Gas Power Corporation Ltd. (APGPCL), which is a gas based power generating company located at
Vijjeswaram in West Godavari District for availing power that is cheaper than power sourced from the state electricity
board. ASL also holds majority stake in unlisted subsidiaries like Andhra Farm Chemicals Corporation Limited (76.8%)
and Hindustan Allied Chemicals Limited (77.4%).

Total investments of ASL are higher than the current market cap of Rs.280 of the company. Also, the value of
investments and replacement cost of assets is estimated to be Rs.2,000 crore, which is 4 times the enterprise value
(EV) of about Rs.480 crore.
ASL is an investor friendly company, for 43 years consistently rewarding its shareholders with higher dividends; it
gave a dividend of Rs.5.50/per share for FY2011. For FY2012, the dividend is expected to be around Rs.6, with a
5.2% dividend yield at the current market price.

We believe the present enterprise value (EV) of ASL at Rs.480 crore, is 1/4th the total of Investments and replacements
of assets and it does not capture the real intrinsic value of the assets of the company. Also ASLs promoter holding is
extremely fragmented with 118 individuals holding 53.27% in the company, so making it an easy takeover target. In
case it becomes a target of M&A activity, the stock can become a multi-bagger. At the CMP of Rs.116, the stock is
trading at a PE of 1.9x FY2012E EPS of Rs.60. Hence, we recommend a buy on the stock, for a target price of Rs.160,
which translates to a PE of 2.7x FY2012E EPS (consolidated) of Rs.60.

Company Profile
Andhra Sugars Ltd. was incorporated in 1947. It is a part of the Andhra Sugar Group. ASL is a diversified company with
business interests in manufacture of Sugar, Chemicals and Oil. Its main product is Sugar, which is produced at plants in
West Godavari of AP. ASL is engaged in the manufacture and sale of sugar, organic and inorganic chemicals at plants
located at Tanuku, Kovvur, Taduvai, Saggonda and Bhimadole. The company generates wind power at Ramagiri in
Andhra Pradesh and at Annaikulam, Kurichampatti, Surandai and Kundadam in Tamil Nadu. It manufactures sugar at
three units, Sugar Unit-I Tanuku, Sugar Unit-II Taduvai and Sugar Unit-III Bhimadole. During the fiscal year ended March
31, 2011, the three sugar units crushed an aggregate 754,635 metric tonnes of cane. Molasses, which is a by-product
from the sugar plants is the raw material for its distillery located at Tanuku, producing industrial alcohol and ethanol. It
has inorganic chemical complexes at Kovvur and Saggonda manufacturing a range of inorganic chemicals. The company
is a manufacturer of caustic soda in southern India.

Centrum Broking Pvt Ltd

Disclaimer
Centrum Broking Pvt Limited (CBPL) is a full-service, Stock Broking Company and a member of The Stock Exchange, Mumbai (BSE), National Stock Exchange of India Ltd.
(NSE) and MCX-SX Stock Exchange Limited (MCX-SX). One of our group companies, Centrum Capital Ltd is an investment banker and an underwriter of securities. As a
group Centrum has Investment Banking, Advisory and other business relationships with a significant percentage of the companies covered by our Research Group. Our
research professionals provide important inputs into the Group's Investment Banking and other business selection processes.
Recipients of this report should assume that our Group is seeking or may seek or will seek Investment Banking, advisory, project finance or other businesses and may
receive commission, brokerage, fees or other compensation from the company or companies that are the subject of this material/report. Our Company and Group
companies and their officers, directors and employees, including the analysts and others involved in the preparation or issuance of this material and their dependants,
may on the date of this report or from, time to time have "long" or "short" positions in, act as principal in, and buy or sell the securities or derivatives thereof of companies
mentioned herein .CBPL or its affiliates do not own 1% or more in the equity of this company Our sales people, dealers, traders and other professionals may provide oral or
written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and
investing businesses may make investment decisions that are inconsistent with the recommendations expressed herein. We may have earlier issued or may issue in future
reports on the companies covered herein with recommendations/ information inconsistent or different those made in this report. In reviewing this document, you should
be aware that any or all of the foregoing, among other things, may give rise to or potential conflicts of interest. Mr. G Chokkalingam , group CIO of Centrum Group who is
not the author of this report but has reviewed this report holds the shares in this company which is less than 1% of the equity of the company which was acquired atleast
one month before the release of this report. We and our Group may rely on information barriers, such as "Chinese Walls" to control the flow of information contained in
one or more areas within us, or other areas, units, groups or affiliates of CPBL. CPBL and its affiliates do not make a market in the security of the company for which this
report or any report was written. Further, CPBL or its affiliates did not make a market in the subject companys securities at the time that the research report was
published.
This report is for information purposes only and this document/material should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or
subscribe to any securities, and neither this document nor anything contained herein shall form the basis of or be relied upon in connection with any contract or
commitment whatsoever. This document does not solicit any action based on the material contained herein. It is for the general information of the clients of CBPL. Though
disseminated to clients simultaneously, not all clients may receive this report at the same time. Centrum will not treat recipients as clients by virtue of their receiving
this report. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients.
Similarly, this document does not have regard to the specific investment objectives, financial situation/circumstances and the particular needs of any specific person who
may receive this document. The securities discussed in this report may not be suitable for all investors. The securities described herein may not be eligible for sale in all
jurisdictions or to all categories of investors. The countries in which the companies mentioned in this report are organized may have restrictions on investments, voting
rights or dealings in securities by nationals of other countries. The appropriateness of a particular investment or strategy will depend on an investor's individual
circumstances and objectives. Persons who may receive this document should consider and independently evaluate whether it is suitable for his/ her/their particular
circumstances and, if necessary, seek professional/financial advice. Any such person shall be responsible for conducting his/her/their own investigation and analysis of the
information contained or referred to in this document and of evaluating the merits and risks involved in the securities forming the subject matter of this document.
The projections and forecasts described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and
contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections and
forecasts were based will not materialize or will vary significantly from actual results, and such variances will likely increase over time. All projections and forecasts
described in this report have been prepared solely by the authors of this report independently of the Company. These projections and forecasts were not prepared with a
view toward compliance with published guidelines or generally accented accounting principles. No independent accountants have expressed an opinion or any other form
of assurance on these projections or forecasts. You should not regard the inclusion of the projections and forecasts described herein as a representation or warranty by or
on behalf of the Company, CBPL, Centrum group , 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. We do not provide tax
advice to our clients, and all investors are strongly advised to consult regarding any potential investment. CBPL and its affiliates accept no liabilities for any loss or
damage of any kind arising out of the use of this report. Foreign currencies denominated securities are subject to fluctuations in exchange rates that could have an
adverse effect on the value or price of or income derived from the investment. In addition, investors in securities such as ADRs, the value of which are influenced by
foreign currencies effectively assume currency risk. Certain transactions including those involving futures, options, and other derivatives as well as non-investment-grade
securities give rise to substantial risk and are not suitable for all investors. Please ensure that you have read and understood the current risk disclosure documents before
entering into any derivative transactions.
This report/document has been prepared by CBPL, based upon information available to the public and sources, believed to be reliable. No representation or warranty,
express or implied is made that it is accurate or complete. CBPL has reviewed the report and, in so far as it includes current or historical information, it is believed to be
reliable, although its accuracy and completeness cannot be guaranteed. The opinions expressed in this document/material are subject to change without notice and have
no obligation to tell you when opinions or information in this report change.
This report or recommendations or information contained herein do/does not constitute or purport to constitute investment advice in publicly accessible media and should
not be reproduced, transmitted or published by the recipient. The report is for the use and consumption of the recipient only. This publication may not be distributed to
the public used by the public media without the express written consent of CBPL. This report or any portion hereof may not be printed, sold or distributed without the
written consent of CBPL.
The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about,
and observe, any such restrictions. Neither CBPL nor its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect,
incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information.
This document does not constitute an offer or invitation to subscribe for or purchase or deal in any securities and neither this document nor anything contained herein
shall form the basis of any contract or commitment whatsoever. This document is strictly confidential and is being furnished to you solely for your information, may not be
distributed to the press or other media and may not be reproduced or redistributed to any other person. The distribution of this report in other jurisdictions may be
restricted by law and persons into whose possession this report comes should inform themselves about, and observe any such restrictions. By accepting this report, you
agree to be bound by the fore going limitations. No representation is made that this report is accurate or complete.
The opinions and projections expressed herein are entirely those of the author and are given as part of the normal research activity of CBPL 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.
CBPL and its affiliates have not managed or co-managed a public offering for the subject company in the preceding twelve months. CBPL and affiliates have not received
compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for service in respect of public
offerings, corporate finance, debt restructuring, investment banking or other advisory services in a merger/acquisition or some other sort of specific transaction.
As per the declarations given by them, Mr. Jabal Patel and Mr. Navneet Damani, research analysts and the author of this report and/or any of their family members do not
serve as an officer, director or any way connected to the company/companies mentioned in this report. Further, as declared by them, they have not received any
compensation from the above companies in the preceding twelve months. Our entire research professionals are our employees and are paid a salary. They do not have any
other material conflict of interest of the research analyst or member of which the research analyst knows of has reason to know at the time of publication of the research
report or at the time of the public appearance.
While we would endeavor to update the information herein on a reasonable basis, CBPL, its associated companies, their directors and employees are under no obligation
to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent Centrum from doing so.
Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or
Centrum policies, in circumstances where CBPL is acting in an advisory capacity to this company, or any certain other circumstances.

Centrum Broking Pvt Ltd

Member (NSE and BSE)


Regn No.:
CAPITAL MARKET SEBI REGN. NO.: BSE: INB011251130
CAPITAL MARKET SEBI REGN. NO.: NSE: INB231251134
DERIVATIVES SEBI REGN. NO.: NSE: INF231251134
(TRADING & CLEARING MEMBER)
CURRENCY DERIVATIVES SEBI REGN NO. : MCX-SX INE261251134
Distributor Mutual fund
ARN : 1833
Depository Participent (DP)
SEBI REGD NO. : CDSL : IN-DP-CDSL-20-99
PORTFOLIO MANAGER
SEBI REGN NO.: INP000000456

Website: www.centrum.co.in
Investor Grievance Email ID: investor.grievances@centrum.co.in
Compliance Officer Details:
Mr. Praveen Malik; Tel: (022) 42159703; Email ID: praveen.malik@centrum.co.in

Centrum Broking Pvt Ltd


REGD. OFFICE Address
Bombay Mutual Bldg.,
2nd Floor,
Dr. D.N. Road,
Fort,
Mumbai - 400 001

Correspondence Address
Centrum House
4th Floor, CST Road,
Near Vidya Nagari Marg,
Kalina, Santacruz (E)
Mumbai 400 098.
Tel: (022)4215 9000
Fax: +91 22 4215 9344

Centrum Broking Pvt Ltd