ADD

Ujjivan Small Finance Bank (UJJIVANS)

https://ultraviewer.et/en/own Banks SEPTEMBER 27, 2021
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UPDATE
Sector view: Attractive

Delayed recovery. Ujjivan’s business update indicates a steady decline in overdue loans CMP (`): 20
(~22% as of August 2021) helped by collections as well as restructuring of loans. Fair Value (`): 24
Attrition/HR-related challenges have likely amplified the Covid-led asset quality challenges.
BSE-30: 60,048
The bank has proffered credit cost guidance which conservatively captures the risks in
our view. On a positive note, retail deposits have increased in recent months despite the
turbulence post CEO exit. We cut estimates sharply for the current year, even as the
target multiple already captures the uncertainties. Retain ADD with Rs24 FV (unchanged).
Ujjivan Small Finance Bank
Stock data Forecasts/valuations 2021 2022E 2023E
CMP(Rs)/FV(Rs)/Rating 20/24/ADD EPS (Rs) (0.1) (2.3) 2.4
52-week range (Rs) (high-low) 45-18 EPS growth (%) (103.1) (3,778.5) 201.8
Mcap (bn) (Rs/US$) 35/0.5 P/E (X) (331.7) (8.6) 8.4
ADTV-3M (bn) (Rs/US$) 0.2/0.1 P/B (X) 1.3 1.5 1.2
Shareholding pattern (%) BVPS 15.9 13.7 16.7
Promoters 83.3 RoE (%) 0.3 (12.8) 14.2
FPIs/MFs/BFIs 4.0/0.0/0.0 Div. yield (%) 0.0 0.0 0.0
Price performance (%) 1M 3M 12M NII (Rs bn) 17 17 23
Absolute (2.2) (35.7) (36.4) PPOP (Rs bn) 8 7 10
Rel. to BSE-30 (9.5) (49.7) (100.7) Net profits (Rs bn) 0 (4) 4

August business update: gradual recovery with high credit cost guidance
Key takeaways from Ujjivan’s August business update: (1) Overall PAR book (i.e. total overdues)
declined to ~22% in August from ~31% in June 2021. Adjusting for fresh restructuring and
collections, the PAR book increased by ~2% during July-August. (2) The bank’s restructured
loans, apart from already overdue loans above, stood at 6% as of August. (3) Ujjivan has guided
for 7.5-8% credit costs in FY2022E. (4) Disbursements have started to gain pace, but are yet to
return to their pre-Covid run-rate. (5) Not much to read into the liability performance but growth
in retail/CASA deposits allays concerns of impact on retail deposits due to issues at the bank.
Asset quality headwinds aggravated by organizational issues
Ujjivan is going through a tough phase with twin after-effects of Covid as well as weakened
collection efforts. We suspect that lower headcount, especially the field force, would have
impacted collections during the crucial months of a second Covid wave. Our initial reading of
the situation at the time of the CEO’s resignation suggested an operational/HR issue more than
a serious concern on underwriting quality. However, even as the bank regains its footing,
recovery is likely to be delayed. In line with the guidance, we raise credit cost to 7.5% (from Abhijeet Sakhare
4.2%) for FY2022E which fairly captures the risk and probably provides the bank some
headroom to manage expectations; FY2023E credit cost is left unchanged at 2%, where we see
M B Mahesh, CFA
a positive surprise potential.
Delayed recovery to weigh on bank multiples; holdco play more attractive
We cut earnings sharply for FY2022E with marginal changes in FY2023/24E. We retain FV of Nischint Chawathe
Rs24, rolling over valuations to 1.3X September 2023 book and 8X earnings for RoE of 15-16%
over the medium-term. Our target multiple builds a higher-than-peers cost of equity due to
higher uncertainty during the organizational rebuilding and its impact on asset quality. We Ashlesh Sonje
would look to unwind this discount following a few quarters of improving asset quality/growth
as the bank re-establishes its ability to participate in the ensuing recovery.
Dipanjan Ghosh
We see better risk-reward at Ujjivan holdco which trades ~35% discount to SFB valuation. At
our Fair Value for the bank and 25% holdco discount, the holdco is valued at Rs215 i.e. c.40%
upside. Besides the share swap ratio which gets decided post a valuation exercise, we see Jatin Sangwan
limited regulatory risk with RBI willing to consider merger proposals while SEBI has also recently
tweaked the promoter lock-in requirement to 1.5 years from 3 years earlier.

kspcg.research@kotak.com
Contact: +91 22 6218 6427

For Private Circulation Only. FOR IMPORTANT INFORMATION ABOUT KOTAK SECURITIES’ RATING SYSTEM AND OTHER DISCLOSURES, REFER TO THE END OF THIS MATERIAL.
Banks Ujjivan Small Finance Bank

Exhibit 1: AUM growth has restarted; disbursements yet to normalize fully

March fiscal year-ends, 1QFY22, June 2021-August 2021 (Rs mn)

1QFY22 Jun-21 Jul-21 Aug-21

Microbanking 96,130 96,130 95,720 96,140
MSE 12,720 12,720 13,120 13,560
Housing 20,960 20,960 21,660 22,490
FIG 7,450 7,450 7,610 7,68 0
Others 3,110 3,110 3,260 3,460
AUM 140,370 140,370 141,370 143,340
Microbanking 7,98 0 2,540 6,450 7,490
MSE 1,060 430 8 70 910
Housing 1,120 640 990 1,060
FIG 1,950 1,050 650 450
Others 1,200 390 78 0 360
Disbursements 13,310 5,050 9,740 10,270

Source: Company, Kotak Institutional Equities

Exhibit 2: Retail deposits continue to improve Exhibit 3: Marginal improvement in CASA ratio
March fiscal year-ends, 3QFY19-1QFY22, August 2021 (%) March 2021 – August 2021 (%)

CASA Retail FD & RD Institutional TD + CD Retail deposits CASA (RHS)

100 60 25
20.5 20.8 21.2
20.3
80 48 20
52 48 49 49 49 47
57 58 56 55
64 63
60
36 15

40
36 33 30 30 31 50.0 51.3
33 24 47.5 47.6 10
33 30 32 32
26 26
20
16 18 21 20 21 12 5
10 11 10 12 12 14 14
0
3QFY19

4QFY19

1QFY20

2QFY20

3QFY20

4QFY20

1QFY21

2QFY21

3QFY21

4QFY21

1QFY22

Aug-21

0 0
Mar-21 Jun-21 Jul-21 Aug-21

Source: Company, Kotak Institutional Equities Source: Company, Kotak Institutional Equities

2 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Ujjivan Small Finance Bank Banks

Exhibit 4: Decline in PAR book is riven by restructuring as well as actual collections during July-
August
Movement in PAR book (%)

PAR book at June Restructuring Actual collections Increase in PAR PAR at August
35

28 5.7

5.2
21 2.2

30.8
14
22.1

Source: Company, Kotak Institutional Equities

Exhibit 5: Overdue plus restructured book has seen a decline to ~28% as of August 2021
Overdue loans across bucket, June-August 2021 (%)

1-30 dpd 31-60 dpd 61-90 dpd 90+ dpd Restructured

35 32.3%
1.5
27.7%
28
9.8
6.1

21
2.6

11.9
14 8 .6

1.5
7 3.1
9.8
5.1
0
Jun-21 Aug-21

Source: Company, Kotak Institutional Equities

KOTAK INSTITUTIONAL EQUITIES RESEARCH 3

Banks Ujjivan Small Finance Bank

Exhibit 6: Peak PAR book in Covid is nearly 3X of demonetization

PAR book (0+ dpd), March fiscal year-ends, 4QFY16-1QFY22 (%)

PAR>0
35
30.8

28 25.2 25.0
21.7
21
16.8 16.2

14 9.9
8 .8 14.9
6.7
5.4
7 4.0 3.3 3.3
2.4 1.6 1.8 1.6 2.1 2.0 1.8

Jul-21

Jul-21
4QFY17

1QFY18

4QFY18

1QFY19

3QFY19

4QFY19

2QFY20

3QFY20

2QFY21

3QFY21

1QFY22
2QFY18

3QFY18

2QFY19

1QFY20

4QFY20

1QFY21

4QFY21

Aug-21
Source: Company, Kotak Institutional Equities

Exhibit 7: Covid has been more severe and drawn out compared to demonetization
MFI loan book and credit cost (annualized), March fiscal year-ends, 4QFY16-1QFY22

(Rs bn) MFI loan book Credit cost (RHS) (%)

100 20

88 16

76 12

64 8

52 4

40 0
4QFY16

2QFY17

4QFY17
1QFY18

3QFY18
4QFY18

2QFY19
3QFY19

1QFY20
2QFY20

4QFY20
1QFY21

3QFY21

1QFY22
1QFY17

3QFY17

2QFY18

1QFY19

4QFY19

3QFY20

2QFY21

4QFY21

Notes:
(1) We have smoothened the credit cost over 3QFY21-4QFY21 by taking the average.

Source: Company, Kotak Institutional Equities

4 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Ujjivan Small Finance Bank Banks

Exhibit 8: Collections efficiency trends (excludes restructured loans)

Monthly collections, September 2020 – August 2021 (%)

Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21
Microbanking 8 3% 88% 8 9% 94% 92% 92% 94% 88% 71% 77% 93% 95%
MSE (secured) 8 1% 8 6% 88% 90% 90% 8 9% 90% 8 7% 75% 8 2% 8 7% 8 6%
MSE (unsecured) 62% 67% 67% 69% 66% 62% 63% 48 % 35% 40% 41% 33%
Affordable housing 92% 93% 94% 94% 94% 94% 96% 91% 8 7% 91% 93% 92%
Personal loan 79% 88% 88% 8 9% 91% 90% 91% 88% 8 6% 88% 88% 8 9%
Vehicle loan 92% 91% 96% 97% 97% 88% 99% 96% 8 6% 8 6% 92% 92%
FIG lending 100% 100% 100% 99% 98 % 98 % 98 % 98 % 98 % 98 % 99% 100%
Total 84% 88% 89% 94% 92% 92% 94% 89% 72% 78% 93% 95%

Source: Company, Kotak Institutional Equities

Exhibit 9: Ujjivan’s employee base has declined by ~10% since start of Covid
Indexed movement of number of employees, March fiscal year-ends, 2020-21 (#)

Ujjivan CAG Spandana Equitas AU Bandhan

140

120

100

80

60

40
4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22

Source: Company, Kotak Institutional Equities

KOTAK INSTITUTIONAL EQUITIES RESEARCH 5

Banks Ujjivan Small Finance Bank

Exhibit 10: Covid impact on asset quality for Ujjivan is similar to other peers
As of June 2021 (%)

1-30 30-60 60-90 Restructured 90+

45.0

36.0

27.0

18.0

9.0

-
Bandhan CAG Ujjivan Suryoday Spandana

Notes:
(1) There are possible overlaps between restructured loans and overdue loans.

Source: Company, Kotak Institutional Equities

Exhibit 11: Ujjivan FS: ~35% holding company discount

Holding company discount for Ujjivan FS versus Ujjivan SFB, December 2019-September 2021 (%)

70

56

42

28

14

-
Jun-20

Jun-21
Jul-21
Jul-20
Mar-20

Mar-21
Jan-20

Jan-21
Apr-20

Apr-21
Sep-20

Sep-21
May-20

Nov-20

May-21
Feb-20

Feb-21
Oct-20
Aug-20

Aug-21
Dec-19

Dec-20

Source: Company, Kotak Institutional Equities

6 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Ujjivan Small Finance Bank Banks

Exhibit 12: Valuation of holdco at KIE fair value and CMP

March fiscal year-ends, September 2023

At KIE FV At CMP
RGM based fair value per share for SFB (Rs) 24 20
Number of shares (mn) 1,728 1,728
RGM based fair value for SFB (Rs mn) 41,427 34,307
Adj. book value per share for SFB (Rs) 19 19
Target multiple for SFB (X) 1.3 1.1
Holding company's stake in SFB (%) 83 83
Fair value of holding company's stake in SFB (Rs mn) 34,517 28,585
Target holding company discount (%) 25.0 25.0
Fair value of holding company (Rs mn) 25,888 21,438
Holding company NOSH 121.2 121.2
Fair value per share of holding company (Rs) 214 177
Current market price of holding company (Rs) 152 152
Upside to current maret price (%) 41 16

Source: Company, Kotak Institutional Equities

Exhibit 13: Change in estimates for Ujjivan SFB

Old and new estimates, March fiscal year-ends, 2022-24E (Rs mn)

New estimates Old estimates Change (%)

2022E 2023E 2024E 2022E 2023E 2024E 2022E 2023E 2024E
AUM 174,755 216,8 96 260,38 1 172,626 211,999 254,749 1 2 2
AUM growth (%) 15 24 20 14 23 20
Net interest income 17,48 3 22,619 26,78 1 17,651 22,412 26,376 (1) 1 2
NIM (%) 8 .5 9.3 8 .7 8 .5 9.0 8 .6
Non-interest income 3,8 24 4,68 7 5,668 3,709 4,557 5,541 3 3 2
Operating cost 14,518 17,553 21,226 14,518 17,553 21,226 — — —
Provisions 11,98 9 3,917 2,8 64 6,669 3,8 46 2,8 00 80 2 2
Profit before tax (5,209) 5,8 16 8 ,329 164 5,550 7,8 60 NM 5 6
Tax (1,354) 1,512 2,165 43 1,443 2,044 NM 5 6
Profit after tax (3,8 55) 4,304 6,163 121 4,107 5,8 17 NM 5 6
ABVPS 13.7 16.7 20.3 15.2 18 .0 21.2 (10) (7) (4)

Source: Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 7

Banks Ujjivan Small Finance Bank

Exhibit 14: Ujjivan SFB: Key growth rates and ratios

March fiscal year-end, 2018-2024E (%)

2018 2019 2020 2021 2022E 2023E 2024E

Growth in key parameters
Profit and loss statement
Interest income 576.7 24.8 47.6 3.8 4.9 23.4 19.8
Interest expense 454.9 19.5 47.5 0.7 10.9 14.6 22.0
Net interest income 700.6 28 .5 47.6 5.8 1.1 29.4 18 .4
Other income 1,111.7 8 4.8 56.4 (3.5) 23.0 22.5 20.9
Fee income 648 .0 76.1 52.5 (26.5) 50.0 25.0 25.0
Net total income 733.0 35.0 49.0 4.3 4.5 — 18 .8
Provisioning expenses 6,915 (8 6.9) 321.3 367.3 50.0 (67.3) (26.9)
Operating expneses 48 6.0 53.7 31.4 (6.7) 18 .0 20.9 20.9
Staff expenses 610.4 43.9 38 .5 4.2 16.6 19.4 18 .7
Admin and other operating expenses 38 1.9 65.7 23.8 (19.8 ) 20.2 23.2 24.2
Depreciation expenses 711.2 46.5 19.8 5.7 10.5 10.1 14.9
PBT 8 8 3.3 2,933.0 73.7 (97.8 ) (5,208 .2) (211.6) 43.2
PAT 13,640.0 2,799.9 75.6 (97.6) (4,746.0) (211.6) 43.2
Balance sheet
Loans and advances 25.2 43.8 33.1 3.2 20.6 24.1 20.0
Investments (14.8 ) 23.9 57.0 5.0 (25.6) 53.6 69.8
Fixed assets 41.9 43.4 5.6 (6.6) (49.4) (15.2) (20.6)
Cash and bank balances (35.1) 121.2 22.7 91.9 (16.7) 30.0 24.1
Other assets (7.8 ) 34.5 15.3 56.2 — — —
Total assets 12.2 45.1 34.0 10.7 8 .7 26.4 25.0
Borrowings (38 .8 ) 8 .1 (5.1) (17.9) (38 .3) — —
Deposit 1,727.7 95.6 46.1 21.8 26.0 32.1 28 .6
Total liabilities 15.1 52.3 27.7 12.7 12.7 28 .1 25.9
Share capital — — 20.0 0.0 — — —
Reserves and surplus 17,150.0 2,502.8 601.3 2.5 (31.3) 46.4 46.0
Shareholders funds 0.5 11.9 8 4.5 1.0 (13.4) 15.7 19.7
Key ratios (%)
Cost of funds 8 .6 7.5 8 .1 6.9 6.8 6.4 6.1
Yield on loans 19.9 19.3 20.7 18 .2 17.2 17.4 16.8
Spread 8 .6 9.0 9.4 8 .1 7.6 8 .5 7.9
NIM 10.1 10.0 10.6 9.3 8 .5 9.3 8 .7
Cost-income ratio 67.1 76.5 67.4 60.3 68 .1 64.3 65.4
Operating expense / assets 7.3 8 .6 8 .2 6.3 6.8 7.0 6.7
ROA decomposition - % of avg. assets
Net interest income 9.6 9.5 10.2 8.9 8.2 9.0 8.5
Other income 1.2 1.8 2.0 1.6 1.8 1.9 1.8
Loan loss provisions 3.5 0.3 1.1 4.1 5.6 1.6 0.9
Operating expenses 7.3 8 .6 8 .2 6.3 6.8 7.0 6.7
Employees 4.0 4.5 4.5 3.9 4.1 4.2 3.9
Pre -tax pre extraordinary income 0.1 2.3 2.9 0.1 (2.4) 2.3 2.6
(1- tax rate) 77.6 74.2 75.0 8 1.4 74.0 74.0 74.0
ROA 0.1 1.7 2.2 0.0 (1.8) 1.7 2.0
Avg assets/avg equity 5.4 6.7 6.4 6.1 7.0 8 .3 8 .9
ROE 0.4 11.5 14.0 0.3 (12.8) 14.2 17.5

Source: Company, Kotak Institutional Equities estimates

8 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Ujjivan Small Finance Bank Banks

Exhibit 15: Ujjivan SFB: Summarized financial statements

March fiscal year-end, 2018-2024E (Rs mn)

2018 2019 2020 2021 2022E 2023E 2024E

Profit and loss statement
Interest income 14,679 18 ,316 27,036 28 ,061 29,438 36,315 43,48 8
Interest costs 6,069 7,252 10,700 10,775 11,955 13,696 16,707
Net interest income 8 ,610 11,064 16,336 17,28 6 17,48 3 22,619 26,78 1
Other income 1,115 2,060 3,222 3,108 3,8 24 4,68 7 5,668
Net fee income 792 1,395 2,127 1,563 2,344 2,930 3,662
Other income 323 665 1,095 1,546 1,48 1 1,757 2,005
Net total income 9,725 13,124 19,558 20,394 21,308 27,306 32,449
Provisioning expenses 3,108 406 1,710 7,991 11,98 9 3,917 2,8 64
Net income (post provisions) 6,617 12,718 17,8 48 12,403 9,319 23,38 9 29,58 5
Operating expneses 6,529 10,034 13,18 6 12,301 14,518 17,553 21,226
Staff expenses 3,604 5,18 8 7,18 5 7,48 8 8 ,734 10,427 12,372
Admin and other operating expenses 2,511 4,240 5,275 4,045 4,936 6,192 7,78 1
Depreciation expenses 414 606 726 768 8 49 934 1,073
PBT 88 2,68 4 4,662 102 (5,209) 5,8 16 8 ,329
Tax 20 692 1,163 19 (1,354) 1,512 2,165
PAT 69 1,992 3,499 83 (3,8 55) 4,304 6,163
Balance sheet
Loans and advances 73,362 105,525 140,436 144,940 174,755 216,8 96 260,38 1
Investments 12,325 15,266 23,961 25,165 18 ,722 28 ,752 48 ,8 06
Fixed assets 1,98 3 2,8 45 3,005 2,8 07 1,421 1,205 957
Cash and bank balances 4,948 10,945 13,433 25,775 21,462 27,908 34,624
Other assets 2,113 2,8 42 3,277 5,118 5,118 5,118 5,118
Total assets 94,732 137,422 18 4,112 203,8 05 221,478 279,8 79 349,8 8 7
Liabilities
Borrowings 38 ,529 41,661 39,533 32,473 20,036 20,036 20,036
Deposits 37,725 73,794 107,8 05 131,358 165,511 218 ,631 28 1,265
Other liabilities and provisions 2,009 3,771 4,8 98 7,78 6 7,78 6 8 ,951 10,348
Total liabilities 78 ,262 119,226 152,235 171,617 193,333 247,617 311,649
Share capital 14,400 14,400 17,28 2 17,28 3 17,28 3 17,28 3 17,28 3
Reserves and surplus 69 1,796 12,595 12,904 8 ,8 62 12,979 18 ,955
Shareholders funds 14,469 16,196 29,8 77 30,18 7 26,145 30,262 36,238
Preference capital 2,000 2,000 2,000 2,000 2,000 2,000 2,000

Source: Company, Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 9

Disclosures

Kotak Institutional Equities Research coverage universe

Distribution of ratings/investment banking relationships
Percentage of companies covered by Kotak Institutional
70%
Equities, within the specified category.

60%
Percentage of companies within each category for which Kotak
Institutional Equities and or its affiliates has provided
50%
investment banking services within the previous 12 months.

40% * The above categories are defined as follows: Buy = We expect

32.5% this stock to deliver more than 15% returns over the next 12
30% 27.4% months; Add = We expect this stock to deliver 5-15% returns
23.6% over the next 12 months; Reduce = We expect this stock to
deliver -5-+5% returns over the next 12 months; Sell = We
20% 16.5% expect this stock to deliver less than -5% returns over the next
12 months. Our target prices are also on a 12-month horizon
10% basis. These ratings are used illustratively to comply with
4.2% 4.2% 2.8% applicable regulations. As of 30/06/2021 Kotak Institutional
0.5%
Equities Investment Research had investment ratings on 212
0%
equity securities.
BUY ADD REDUCE SELL

Source: Kotak Institutional Equities As of June 30, 2021

Ratings and other definitions/identifiers

Definitions of ratings

BUY. We expect this stock to deliver more than 15% returns over the next 12 months.

ADD. We expect this stock to deliver 5-15% returns over the next 12 months.

REDUCE. We expect this stock to deliver -5-+5% returns over the next 12 months.

SELL. We expect this stock to deliver <-5% returns over the next 12 months.

Our Fair Value estimates are also on a 12-month horizon basis.

Our Ratings System does not take into account short-term volatility in stock prices related to movements in the market. Hence, a particular Rating may not
strictly be in accordance with the Rating System at all times.

Other definitions

Coverage view. The coverage view represents each analyst’s overall fundamental outlook on the Sector. The coverage view will consist of one of the following
designations: Attractive, Neutral, Cautious.

Other ratings/identifiers

NR = Not Rated. The investment rating and fair value, if any, have been suspended temporarily. Such suspension is in compliance with applicable regulation(s)
and/or Kotak Securities policies in circumstances when Kotak Securities or its affiliates is acting in an advisory capacity in a merger or strategic transaction
involving this company and in certain other circumstances.

CS = Coverage Suspended. Kotak Securities has suspended coverage of this company.

NC = Not Covered. Kotak Securities does not cover this company.

RS = Rating Suspended. Kotak Securities Research has suspended the investment rating and fair value, if any, for this stock, because there is not a sufficient
fundamental basis for determining an investment rating or fair value. The previous investment rating and fair value, if any, are no longer in effect for this stock
and should not be relied upon.

NA = Not Available or Not Applicable. The information is not available for display or is not applicable.

NM = Not Meaningful. The information is not meaningful and is therefore excluded.

10 KOTAK INSTITUTIONAL EQUITIES RESEARCH

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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. Kotak Securities Limited does not provide tax advise to its clients, and all investors are strongly advised to consult with their tax advisers regarding any potential investment.
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. The material is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied on as such. Opinions
expressed are our current opinions as of the date appearing on this material only. We endeavor to update on a reasonable basis the information discussed in this material, but regulatory,
compliance, or other reasons may prevent us from doing so. We and our affiliates, officers, directors, and employees, including persons involved in the preparation or issuance of this
material, may 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. Kotak
Securities Limited and its non US affiliates may, to the extent permissible under applicable laws, have acted on or used this research to the extent that it relates to non US issuers, prior to
or immediately following its publication. Foreign currency 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 affectively assume currency risk. In addition
options involve risks and are not suitable for all investors. Please ensure that you have read and understood the current derivatives risk disclosure document before entering into any
derivative transactions.
Kotak Securities Limited established in 1994, is a subsidiary of Kotak Mahindra Bank Limited. Kotak Securities is one of India's largest brokerage and distribution house.
Kotak Securities Limited is a corporate trading and clearing member of Bombay Stock Exchange Limited (BSE), National Stock Exchange of India Limited (NSE), Metropolitan Stock
Exchange of India Limited (MSE), National Commodity and Derivatives Exchange (NCDEX) and Multi Commodity Exchange(MCX). Our businesses include stock broking, services rendered
in connection with distribution of primary market issues and financial products like mutual funds and fixed deposits, depository services and Portfolio Management.
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). Kotak Securities Limited
is also registered with Insurance Regulatory and Development Authority as Corporate Agent for Kotak Mahindra Old Mutual Life Insurance Limited and is also a Mutual Fund Advisor
registered with Association of Mutual Funds in India (AMFI). Kotak Securities Limited is registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014.
We hereby declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered in last five years. However SEBI,
Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on KSL for certain operational
deviations. We have not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has our certificate of registration been cancelled by SEBI at any point
of time.
We offer our research services to primarily institutional investors and their employees, directors, fund managers, advisors who are registered with us
Details of Associates are available on website i.e. www.kotak.com
Research Analyst has served as an officer, director or employee of subject company(ies): No
We or our associates may have received compensation from the subject company(ies) in the past 12 months.
We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past 12 months. YES. Visit our website for more details
We or our associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company(ies) in the past 12 months. We or our
associates may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company(ies) in the
past 12 months. We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report.
Our associates may have financial interest in the subject company(ies).
Research Analyst or his/her relative's financial interest in the subject company(ies): No
Kotak Securities Limited has financial interest in the subject company(ies) at the end of the month immediately preceding the date of publication of Research Report: YES
Nature of Financial interest: Holding equity shares or derivatives of the subject company.
Our associates may have actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of publication of
Research Report.
Research Analyst or his/her relatives has actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of
publication of Research Report: No
Kotak Securities Limited has actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of publication of
Research Report: No
Subject company(ies) may have been client during twelve months preceding the date of distribution of the research report.
A graph of daily closing prices of securities is available at https://www.moneycontrol.com/india/stockpricequote/ and http://economictimes.indiatimes.com/markets/stocks/stock-quotes.
(Choose a company from the list on the browser and select the"three years" icon in the price chart).
Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051, Telephone No.: +22
43360000, Fax No.: +22 67132430. Website: www.kotak.com / www.kotaksecurities.com. Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg,
Malad (East), Mumbai 400097. Telephone No: 42856825. SEBI Registration No. INZ000200137(Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024;
MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97. Compliance Officer Details: Mr. Manoj Agarwal.
Call: 022 - 4285 8484, or Email: ks.compliance@kotak.com. Investments in securities market are subject to market risks, read all the related documents carefully before investing.
In case you require any clarification or have any concern, kindly write to us at below email ids:
Level 1: For Trading related queries, contact our customer service at ‘service.securities@kotak.com’ and for demat account related queries contact us at ks.demat@kotak.com or call us on:
Toll free numbers 18002099191 / 1860 266 9191
Level 2: If you do not receive a satisfactory response at Level 1 within 3 working days, you may write to us at ks.escalation@kotak.com or call us on 022-42858445 and if you feel you are
still unheard, write to our customer service HOD at ks.servicehead@kotak.com or call us on 022-42858208.
Level 3: If you still have not received a satisfactory response at Level 2 within 3 working days, you may contact our Compliance Officer (Name: Mr. Manoj Agarwal) at
ks.compliance@kotak.com or call on 91- (022) 4285 8484.
Level 4 : If you have not received a satisfactory response at Level 3 within 7 working days, you may also approach Managing Director / CEO (Mr. Jaideep Hansraj) at ceo.ks@kotak.com or
call on 91-(022) 4285 8301.
First Cut notes published on this site are for information purposes only. They represent early notations and responses by analysts to recent events. Data in the notes may not have been
verified by us and investors should not act upon any data or views in these notes. Most First Cut notes, but not necessarily all, will be followed by final research reports on the subject.
There could be variance between the First cut note and the final research note on any subject, in which case the contents of the final research note would prevail. We accept no liability
for the contents of the First Cut Notes.