Studds Accessories Ltd Market leader in one of the largest 2W ancillary

Studds Accessories Ltd (Studds), incorporated in 1973, is a leading manufacturer of Dishant Jain
helmets in India. The company owns two brands: Studds and SMK. SMK, a premium Research Analyst
Dishant.Jain@edelweissfin.com
brand launched in 2016, is mainly targeted at the export market. Despite the sharp
slowdown in the demand for two-wheelers (2Ws) in FY20 and FY21, the demand for
helmets grew ~5% in FY20 and 8% in FY21. This was due to the strict implementation of
CMP: 1,610
regulations by state authorities across India, making it mandatory for 2W riders to wear
helmets. Target Price: 1,990
Going forward, we believe the laws related to helmets for 2W riders will continue to be
Rating: BUY
stringent. This, coupled with the introduction of regulations making helmet wearing
compulsory for pillion riders by an increasing number of states, would be the key growth Upside: 24%
driver for the helmet industry.
Given the scenario and considering Studds’ market leading position, we expect its top
line to expand at a CAGR of 18% during FY21–24E. Due to continuous cost control and
the trend of premiumisation, PAT is expected to increase at a CAGR of ~20–22% over this
period. Plus, low capex requirement and negative WCC would ensure the company’s
cash flows and ROCE remain strong, going forward, keeping valuation healthy.
Regulatory tailwinds to drive healthy growth in top line
In India, six 2W riders die every hour in road accident. To increase road safety and curb
the rising accidents, states have been implementing strict laws making helmets mandatory
for 2W riders since 2010. Also, to contain counterfeiting in the domestic helmet industry,
Central government imposed a ban on the sale of non-BIS helmets and duplicate helmets
from 2018. We believe stricter enforcement of law and rising awareness, coupled with the
trend of premiumisation, would drive growth in the domestic helmet industry. Studds,
being the market leader, stands to be the major beneficiary of this change. Therefore, we
expect the company’s top line to expand at a CAGR of 18% during FY21–24E.

Improvement in margins and strong cash flow to continue

The trend of premiumisation and aggressive cost control would enable Studds to maintain
a modest improvement in profitability. We estimate EBITDA to grow 19–20% and PAT to
expand at ~20–22% CAGR during FY21–24E. Also, the company has maintained its negative
WCC, resulting in a strong ROCE profile over the last 7–8 years. Going forward, we expect
margins to improve. This, coupled with low capex and negative working capital cycle
(WCC), would help Studds to maintain its strong ROCE.

Robust top line and ROCE visibility to keep valuation healthy

We believe the sharp rise in the share of the organised segment, rising demand for
premium helmets, the company’s focus on expanding export business and strict
implementation of compulsory pillion helmet rules across the country would bode well for
growth in top line. Meanwhile, improving margin profile, low capex requirement and
negative WCC would ensure strong cash flow and ROCE, thereby strengthening the
valuation. Hence, we have a BUY rating on the stock with a target price of INR 1,990 valuing
the company at 30x FY24E P/E.

Year to March FY20 FY21 FY22E FY23E FY24E

Revenues (INR Cr) 431 480 561 676 785
Rev growth (%) 10.8 11.2 17.1 20.5 16.1
EBITDA (INR Cr) 98 111 120 156 184
Adjusted PAT (INR Cr) 75 74 79 106 130
P/E (x) 43.3 43.9 41.1 30.6 25.0
Price/BV(x) 15.0 11.2 9.3 7.6 6.2
EV/EBITDA (x) 44.0 38.7 35.6 27.1 22.4
RoACE (%) 50.3 42.3 38.0 43.9 51.2
RoAE (%) 39.9 29.2 24.8 27.3 27.4
Date: January 17, 2022

Edelweiss Wealth Research 1

Date: December 13, 2021

Studds Accessories Ltd.
Investment Hypothesis

I. Significant increase in accident rates amid growth in demand for vehicles from
FY00 due to lack of stringent driving norms

With the growth in the middle class population, the demand for vehicles has increased post-FY00.
The 2W segment has particularly recorded one of the highest growth rates. Sales of 2Ws in the
domestic market increased 4x from 4mn units in FY00 to 15mn units in FY21.

In the last decade itself, before the sharp slowdown in demand during FY20 and FY21, 2W sales in
the domestic market grew ~2.2x from 9mn units in FY10 to 21mn in FY19.

Exhibit 1: Growth in middle class households boosts demand for 2Ws in the last two decades

Source: Bain & Company

Exhibit 2: Healthy growth in most years in the last decade – 2W population expands by more
than 2.5x during FY10–21
160

140

120

100
Units (in mn)

80

60

40

20

0
FY17
FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY18

FY19

FY20

FY21

Domestic sales Population

Source: SIAM and Edelweiss Wealth Research

Edelweiss Wealth Research 2

Studds Accessories Ltd.
Investment Hypothesis

Due to the poor condition of roads, lax licensing laws and minimal awareness regarding usage of
helmets (either no use or use of unsafe helmets), the number of fatalities from 2W accidents is
highest compared to other vehicle categories.

Exhibit 3: Drop in number of accidents in the last decade but increase in fatality rate
600

500
Nos (in 000s)

400

300

200

100

0
FY70

FY80

FY90

FY00

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19
Accidents Deaths
Source: Ministry of Road Transport and Highways (MORTH)

Exhibit 4: 2W tops in terms of proportion of deaths due to road mishaps

Bicycle, 2%
Truck/Lorry,
6%
Auto
Rickshaw,
6%

Two wheeler,
37%
Pedestrian,
17%

Car/Taxi/LMV,
21%

Source: MORTH

Edelweiss Wealth Research 3

Studds Accessories Ltd.
Investment Hypothesis

II. Rise in accidents prompts the Supreme Court to make it mandatory for OEMs
to provide a helmet for every 2W sold

In India, six 2W riders die every hour in road accident. Two-wheelers are highly popular in the
country, constituting ~80% of total vehicles on roads. However, a robust infrastructure in the form
of roads is missing. Due to these reasons, the number of road accidents involving 2Ws are also very
high. More than a third (37%) of those killed in road accidents in 2019 were 2W riders.

In 2010, to curb the rise in accidents, the Supreme Court jumped to action. It made helmets
mandatory for 2W riders and directed OEMs to compulsorily sell a BIS-certified helmet with every
sale of a 2W. While the Motor Vehicles (MV) Act, 1988 had made it mandatory for 2W riders to wear
helmets, implementation of the rule by local authorities was far from stringent. However, after the
ruling by the Supreme Court, implementation of norms across states became significantly stricter.

The regulatory framework related to helmets in India is based on two pillars: a) compulsory wearing
of helmets while driving a 2W which is governed by the MV Act, 1988; and b) the quality of the
material of the helmet that can withstand the impact in case of an accident, specified by the Bureau
of Indian Standards (BIS).

Driving a 2W without wearing a helmet is a punishable offence, inviting a fine of INR1000 under
Section 194D of the MV Act. Besides, non-compliance could result in suspension of driving license
for three months.

The Ministry of Road Transport & Highways issued a notification declaring the manufacture and sale
of non-ISI-marked helmets illegal. Also, according to the BIS Act, manufacturing, storing, selling or
importing non-ISI-marked helmets will attract a punishment of imprisonment of up to one year or
a fine of INR1–5lkh.

Exhibit 5: Regulatory framework governing helmet industry

Regulations

Motor Vehicle Act 1988 Bureau of Indian Standards

Act, 2016

Covers: 1) Development of
1) Prohibits driving vehicle benchmark of quality
under unsafe condition standards for a product

2) Makes the use of 2) Market surveillance for

protective product to find out
headgear/helmets while discrepancies between
driving 2W, as specified actual and published
by BIS norms, mandatory quality parameters

3) Generation of awareness
among consumers and
industry about quality
parameters

Source: Edelweiss Wealth Research

Edelweiss Wealth Research 4

Studds Accessories Ltd.
Investment Hypothesis

III. Increase in demand for helmets amid rising awareness and stricter
implementation of rules

The helmet industry in India has evolved over the past decade and continues to undergo rapid
transformation. In addition to the tough stance of local authorities and police towards offenders,
over the years, the government and private sector have also collaborated to bring awareness
regarding safety in 2W riders. Consequently, the demand for helmets in India more than doubled
from ~11mn units in FY12 to ~24mn units in FY21.

Despite the sharp slowdown in the demand for 2Ws in FY20 and FY21, the demand for helmets grew
~5% in FY20 and ~9% in FY21, mainly due to the regulatory push.

Restrictions on sale of non-BIS helmets bode well for organised players

BIS norms governing the manufacturing quality of helmets have been in existence since the early
2000s. In 2018, the Government of India passed a rule making the sale of non-BIS-marked helmets
and counterfeit helmets illegal. This was a significant step that benefited organised players.

Due to the rising awareness about safety and state governments laying stringent procedures to curb
the sale of non-BIS-marked or duplicate helmets, the share of the unorganised sector in the helmet
industry declined from ~55% in FY12 to ~30% in FY18. Nevertheless, we believe that as steps are
taken to curtail the sale of non-BIS-marked helmets, substantial opportunities for organised players
to expand presence are opening up.

Exhibit 6: Regulatory push towards enhancing safety significantly boosts helmet demand
35.0
`CAGR FY15-20 CAGR FY20-24
CAGR FY12-15
Unorganised: -1% Unorganised: -22%
30.0 Unorganised: -2%
Organised: 11% Organised: 15%
Organised: 12%
Overall:11% Overall:10%
Overall:6% Selling of no-BIS
25.0
Units (in mn)

helmets illegalised

20.0 Supreme Court ruling on

stricter implementation of
compulsory helmets for 2W
15.0
riders

10.0

5.0

0.0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E FY24E

Organised Un-organised
Source: MORTH, Company reports and Edelweiss Wealth Research

Edelweiss Wealth Research 5

Studds Accessories Ltd.
Investment Hypothesis

Brand loyalty gradually catching up in helmet industry

Studds, Vega and Steelbird are among the top three players in the domestic helmet industry,
controlling around half the market. Apart from these, Aerostar, Wrangler, Ergo, Aeron and Gliders
are the other organised players.

Exhibit 7: Studds dominates with strong presence in Northern and Western India

Studds,
26%

Others,
44%

Vega, 11%

Steelbird,
11%
Glider, 1%
Aaron, 1% Wrangler, Aerostar,
Ergo, 2% 2% 3%
Source: Company reports and Edelweiss Wealth Research

Helmets, a protective gear for a 2W rider, have become a symbol of stature, especially for premium
motorcycle or scooter riders. This has paved the way for brand consciousness and loyalty for
helmets among 2W riders.

Helmets priced above INR3,000 are classified premium. AGV, Bell, HJC, Revolt, and Arai are some of
the premium brands in the market, with helmets priced above INR15,000.

Edelweiss Wealth Research 6

Studds Accessories Ltd.
Investment Hypothesis

IV. Studds – A major beneficiary of surge in demand

With the rising demand for helmets driven by strict enforcement of law and increasing awareness,
the company’s top line grew more than 4x from INR115cr in FY13 to INR480cr in FY21. Another
factor that contributed to the growth was different state governments making the sale of BIS-
approved helmets mandatory, followed by a similar regulation by the Government of India in FY18.

Exhibit 8: Industry headwinds and market share gains fuel top-line growth
900 45%
` CAGR FY15-20 `CAGR FY21-24
800 Topline: 18% Topline: 18% 40%

700 35%

600 30%
INR cr

500 25%

400 20%

300 15%

200 10%

100 5%

0 0%
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E FY24E
Studds Topline (LHS) YoY growth (RHS)

Source: Company reports and Edelweiss Wealth Research

Going forward as well, we believe the sharp rise in the share of the organised segment, rising
demand for premium helmets, the company’s focus on expanding export business and strict
implementation of compulsory pillion helmet laws across the country would be the key growth
drivers in the helmet industry. Being a market leader, Studds would significantly benefit from these
factors in the near to medium term.

Exhibit 9: Strong presence, regulatory changes help improve Studds’ market share
27%
26%
25%
25%
23%
22%
21%
19%

16%
15%

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

Source: Company reports and Edelweiss Wealth Research

Edelweiss Wealth Research 7

Studds Accessories Ltd.
Investment Hypothesis

Strong presence likely to help in expanding market share

Studds has a dominating position in the industry, mainly due to its healthy presence across regions,
especially stronghold in the high volume northern and western markets. The northern and western
regions contribute more than 55% to the company’s top line.

Exhibit 10: Strong presence across regions helps Studds to dominate the industry

Studds
Others 20%
51% Steelbird
14%
Vegaa
6%
Vega
12%
Steelbird
11% West, North,
28% 35%
Studds Others
26% 60%

Others East, 14%

43%

Vega South,
Studds Studds
8% 25%
47% 22%
Steelbird
Vega 10%
Others
18%
50%

Source: Company reports and Edelweiss Wealth Research

Effective cost control leads to improvement in margin profile over last 7–8 years
Due to continuous cost control and a gradual change in mix owing to the trend of premiumisation,
Studds’ EBITDA margin improved significantly from 10% in FY13 to 23% in FY21.

Going forward, we believe that a change in mix driven by the rising trend of premiumisation and
the company’s focus on expanding exports would continue to boost margins.

Edelweiss Wealth Research 8

Studds Accessories Ltd.
Investment Hypothesis

Exhibit 11: Margins likely to continue improving driven by positive product mix

200 25%
CAGR FY15-20 CAGR FY21-24E
180 EBITDA: 33% EBITDA: 19%
Avg EBITDA Avg EBITDA
160 margin: 23%
margin: 16% 20%
140
INR cr

120

100 15%

80

60
10%
40

20

0 5%
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E FY24E

EBITDA (LHS) EBITDA margins (RHS)

Source: Company reports and Edelweiss Wealth Research

Lower capex requirement, negative WCC ensure strong ROCE

The company’s strong ROCE has been due company’s ability to maintain negative WCC, low capex
requirement and high margins.

With capex requirement not likely to increase significantly, anticipated improvement in margin
profile and WCC likely to remain negative, we expect ROCE and free cash flow (FCF) to continue
increasing, going forward.

Exhibit 12: Low capex and negative WCC to continue leading to strong ROCE
140 100%

120 90%

100 80%

70%
80
60%
60
INR cr

50%
40
40%
20
30%
0 20%
-20 10%

-40 0%
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E FY24E
FCF (LHS) ROCE (RHS)

Source: Company reports and Edelweiss Wealth Research

Edelweiss Wealth Research 9

Studds Accessories Ltd.
Outlook and Valuation

Valuation: Strong top line and ROCE visibility to keep valuation healthy

We believe the sharp rise in the share of the organised segment driven by regulations to restrict
the unorganised sector, rising demand for premium helmets, the company’s focus on expanding
export business and strict implementation of compulsory pillion helmet laws across the country
would result in top-line growth for the company.

Meanwhile an improving margin profile, coupled with low capex requirement and negative WCC,
would ensure robust cash flow and ROCE, thereby strengthening the valuation. Hence, we have a
BUY rating on the stock with a target price of INR 1,990 valuing the company at 30x FY24E P/E.

Edelweiss Wealth Research 10

Studds Accessories Ltd. Financials

Income statement (INR cr)

Year to March FY20 FY21 FY22E FY23E FY24E
Revenue (Inr CR) 431 480 561 676 785
Direct costs 187 200 247 291 338
Employee costs 46 56 66 74 86
Other expenses 146 169 195 230 263
Total operating expenses 333 369 442 521 601
EBITDA 98 111 120 156 184
Depreciation and amortisation 7 13 19 22 24
EBIT 91 97 101 134 160
Interest expenses 1 3 2 1 1
Other income 6 5 7 8 14
Profit before tax 95 98 105 141 173
Provision for tax 21 24 26 35 43
Core profit 75 74 79 106 130
Extraordinary items 0 0 0 0 0
Profit after tax 75 74 79 106 130
Minority Interest 0 0 0 0 0
Share from associates 0 0 0 0 0
Adjusted net profit 75 74 79 106 130
Equity shares outstanding (mn) 2 2 2 2 2
EPS (INR) basic 37.9 37.6 40.2 53.8 66.3
Diluted shares (Cr) 2.0 2.0 2.0 2.0 2.0
EPS (INR) fully diluted 37.9 37.6 40.2 53.8 66.3
Dividend per share 9.8 2.5 10.5 14.0 17.2
Dividend payout (%) 26.0 6.8 26.0 26.0 26.0

Common size metrics- as % of net revenues

Year to March FY20 FY21 FY22E FY23E FY24E
Operating expenses 77.3 77.0 78.7 77.0 76.5
Depreciation 1.7 2.8 3.3 3.3 3.1
Interest expenditure 0.2 0.7 0.4 0.2 0.1
EBITDA margins 22.7 23.0 21.3 23.0 23.5
Net profit margins 17.3 15.4 14.1 15.6 16.6

Growth metrics (%)

Year to March FY20 FY21 FY22E FY23E FY24E
Revenues 10.8 11.2 17.1 20.5 16.1
EBITDA 50.2 12.7 8.4 29.9 18.6
PBT 42.1 3.0 7.0 33.7 23.2
Net profit 75.7 (0.7) 7.0 33.7 23.2
EPS 75.7 (0.7) 7.0 33.7 23.2

Edelweiss Wealth Research 11

Studds Accessories Ltd. Financials

Balance sheet (INR cr)

As on 31st March FY20 FY21 FY22E FY23E FY24E
Equity share capital 10 10 10 10 10
Preference Share Capital 0 0 0 0 0
Reserves & surplus 206 280 339 417 514
Shareholders funds 216 290 349 427 523
Secured loans 28 16 0 0 0
Unsecured loans 12 12 0 0 0
Borrowings 40 28 18 8 8
Minority interest 0 0 0 0 0
Sources of funds 256 318 366 435 531
Gross block 180 308 378 428 458
Depreciation 24 37 56 78 102
Net block 156 270 322 350 355
Capital work in progress 86 6 0 0 0
Total fixed assets 243 276 322 350 355
Unrealised profit 0 0 0 0 0
Investments 2 0 0 0 0
Inventories 19 29 23 28 32
Sundry debtors 18 27 28 37 43
Cash and equivalents 52 76 81 121 213
Loans and advances 13 27 18 20 24
Other current assets 0 0 0 0 0
Total current assets 103 159 150 206 312
Sundry creditors and others 64 97 77 93 108
Provisions 8 5 5 5 5
Total CL & provisions 72 101 82 97 112
Net current assets 31 57 69 109 200
Net Deferred tax -7 -11 -11 -11 -11
Misc expenditure -13 -13 -13 -13 -13
Uses of funds 256 310 366 435 531
Book value per share (INR) 110 147 177 217 266

Cash flow statement (INR Cr)

Year to March FY20 FY21 FY22E FY23E FY24E
Net profit 75 74 79 106 130
Add: Depreciation 7 13 19 22 24
Add: Misc expenses written off 0 0 0 0 0
Add: Deferred tax -3 4 0 0 0
Add: Others 0 0 0 0 0
Gross cash flow 78 91 98 128 155
Less: Changes in W. C. 6 3 6 1 -1
Operating cash flow 72 88 92 127 156
Less: Capex 62 47 64 50 30
Free cash flow 10 42 28 77 126

Edelweiss Wealth Research 12

Studds Accessories Ltd. Financials

Ratios
Year to March FY20 FY21 FY22E FY23E FY24E
ROAE (%) 39.9 29.2 24.8 27.3 27.4
ROACE (%) 50.3 42.3 38.0 43.9 51.2
Debtors (days) 17 17 18 20 20
Current ratio 1.4 1.6 1.8 2.1 2.8
Debt/Equity 0.2 0.1 0.1 0.0 0.0
Inventory (days) 14 18 15 15 15
Payable (days) 51 61 50 50 50
Cash conversion cycle (days) (LHS) -21 -26 -17 -15 -15
Debt/EBITDA 0.4 0.3 0.1 0.0 0.0
Adjusted debt/Equity (0.1) (0.2) (0.2) (0.3) (0.4)

Valuation parameters
Year to March FY20 FY21 FY22E FY23E FY24E
Diluted EPS (INR) 37.9 37.6 40.2 53.8 66.3
Y-o-Y growth (%) 75.7 (0.7) 7.0 33.7 23.2
CEPS (INR) 41.6 44.4 49.8 65.0 78.6
Diluted P/E (x) 43.5 43.9 41.1 30.6 25.0
Price/BV(x) 15.0 11.2 9.3 7.6 6.2
EV/Sales (x) 7.5 6.8 5.8 4.8 4.1
EV/EBITDA (x) 33.2 29.3 27.1 20.8 17.7
Diluted shares O/S 2.0 2.0 2.0 2.0 2.0
Basic EPS 37.9 37.6 40.2 53.8 66.3
Basic PE (x) 43.5 43.9 41.1 30.6 25.0
Dividend yield (%) 0.4 0.1 0.5 0.6 0.8

Edelweiss Wealth Research 13

 Edelweiss Broking Limited, 1st Floor, Tower 3, Wing B, Kohinoor City Mall, Kohinoor City, Kirol Road, Kurla(W)
Board: (91-22) 4272 2200

Vinay Khattar
VINAY Digitally signed by
VINAY KHATTAR
Head Research
vinay.khattar@edelweissfin.com KHATTAR Date: 2022.01.17
19:40:18 +05'30'

Rating Expected to

Buy appreciate more than 15% over a 12-month period

Hold appreciate between 5-15% over a 12-month period

Reduce Return below 5% over a 12-month period

Edelweiss Wealth Research 14

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have proprietary long/short position in the above mentioned scrip(s) and therefore should be considered as interested. The vi ews provided herein are general in nature and do not
consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing. This should not be construed
as invitation or solicitation to do business with EBL.

EBL or its associates may have received compensation from the subject company in the past 12 months. EBL or its associates may have managed or co-managed public offering of
securities for the subject company in the past 12 months. EBL or its associates may have received compensation for investment banking or merchant banking or brokerage services from
the subject company in the past 12 months. EBL or its associates may have received any compensation for products or services other than investment banking or merchant banking or
brokerage services from the subject company in the past 12 months. EBL or its associates have not received any compensation or other benefits from the Subject Company or third party
in connection with the research report. Research analyst or his/her relative or EBL’s associates may have financial interest in the subject company. EBL, its associates, research analyst
and his/her relative may have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of
research report or at the time of public appearance.
Participants in foreign exchange transactions may incur risks arising from several factors, including the following: ( i) exchange rates can be volatile and are subject to large fluctuations;
( ii) the value of currencies may be affected by numerous market factors, including world and national economic, political and regulatory events, events in equity and debt markets and
changes in interest rates; and (iii) currencies may be subject to devaluation or government imposed exchange controls which could affect the value of the currency. Investors in securities
such as ADRs and Currency Derivatives, whose values are affected by the currency of an underlying security, effectively assume currency risk.

Research analyst has served as an officer, director or employee of subject Company: No

EBL has financial interest in the subject companies: No

EBL’s Associates may have actual / beneficial ownership of 1% or more securities of the subject company at the end of the month immediately precedin g the date of publication of
research report.
Research analyst or his/her relative has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of
publication of research report: No

EBL has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No
Subject company may have been client during twelve months preceding the date of distribution of the research report.

There were no instances of non-compliance by EBL on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years.
A graph of daily closing prices of the securities is also available at www.nseindia.com

Edelweiss Wealth Research 15

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Analyst Certification:
The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their
securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.

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Disclosures under the provisions of SEBI (Research Analysts) Regulations 2014 (Regulations)
Edelweiss Broking Limited ("EBL" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository
services and related activities. The business of EBL and its associates are organized around five broad business groups – Credit including Housing and SME Finance, Commodities,
Financial Markets, Asset Management and Life Insurance. There were no instances of non-compliance by EBL on any matter related to the capital markets, resulting in significant and
material disciplinary action during the last three years. This research report has been prepared and distributed by Edelweiss Broking Limited ("Edelweiss") in the capacity of a Research
Analyst as per Regulation 22(1) of SEBI (Research Analysts) Regulations 2014 having SEBI Registration No.INH000000172.

Edelweiss Wealth Research 16