Research Team 30 October 2023

Diwali Picks 2023

CMP as on 30th Target Price PE/PB
Script Name Upside Potential Market Cap. (₹Bn.) Rationale/Description
Oct-2023 (12 Months) (FY25E)
The company has a total order book of approx. ₹ 35,000 million, with ₹ 22,000-23,000 million
expected to be delivered in the next 12 months. The company has done a capex of ₹ 500
Syrma SGS million in the Q1 FY24 and plans to spend ₹ 2,000-2,500 million in total for the year. Company
612 735 20% 108 36 can be a key player in the growing ESDM industry (especially in the ODM segment) if it grabs
Technology Ltd.
the opportunities available across end-user industries and executes well on the burgeoning
order inflows.
IDFC First has undergone the first phase of its transformation from an infra financier to a
granular retail lending bank. Investment in technology and building a scalable liability
IDFC First Bank Ltd. 83 114 37% 587 12 franchisee would keep costs high in the near term, despite strong granular loan growth. The
bank expects the credit card business to breakeven by FY25. 24-25% of the credit card mix are
revolvers. The bank expects to reach 13-15% ROE by FY25 and 1.4-1.6% ROA by FY25.
The company is re-entering Mumbai with a slum redevelopment project in Andheri West. This
project is a joint venture with the Trident Group, with DLFU investing Rs 4,000 million for a 51%
stake. The planned development spans 3-3.5 msf, with the first 0.9 msf to be launched within
DLF Ltd. 554 640 16% 1,370 40 12 months. For FY24, management expects pre-sales to surpass ₹ 1,20,000 million, driven by
significant inventory, upcoming launches, and strong demand. They plan to introduce msf of
projects valued at Rs 1,97,000 million, with the majority in Gurugram along with projects in
Chennai, Chandigarh , and Noida.
The company is expanding its product range, including valves and semi-cryogenic engines in the
defense and space sectors. MTAR expects to secure defense contracts shortly, enabling direct
MTAR Technologies
2,471 2,970 20% 76 32 supply to major OEMs and the Ministry of Defense. They are also considering new facilities in
Ltd. Europe and the US to enhance their supply chain and competitiveness. Their electrical and
harness system is undergoing certification and is expected to qualify by Q2 FY24.
TVS has been able to expand its presence beyond the South and currently has a significant
TVS Motor Company presence in all the regions, in terms of sales. The efforts taken over the years to improve its
1,609 1,850 15% 764 33 PAN-India dealer network have resulted in having a domestic presence. company is poised to
Ltd. outperform the industry on the back of new product launches in ICE & EV segments, higher
focus on exports and premiumization, operating leverage, benign input prices and price hikes.
M&M has been the dominant market leader in the domestic tractor market, commanding a
market share of 42.9% in Q1FY24 (41.2% in FY23). With its offerings across different brands of
Mahindra & Mahindra
1,497 1,770 18% 1,862 12 Mahindra, Swaraj, Trakstar and soon to be launched Oja and its well-entrenched sales and
Ltd. service network, it is expected to maintain its leadership position going forward as well. The
introduction of new range of OJA tractors is expected to boost its topline in the future.
 CMP: ₹612
Syrma SGS Technology Limited (SYRMA) Target: ₹735

Rationale: 52 Week Low / High 248 / 658

Avg. Daily Volume (3M) 1,007
No. of Shares O/S (Mn.) / Mkt. Cap (₹Mn.) 176.8 / 1,08,270
❑ Syrma SGS Technology (SYRMA) is a technology-focused engineering & design company specializing
Shareholding (Promoters/Institutional/Others) 47.2/ 19.8/ 33.0
in precision manufacturing for diverse end-use industries, including automotive, healthcare,
consumer products, Industrial, IT and Railways. The company provides integrated services and (In ₹ mn) FY-22 FY-23 FY-24E FY-25E
solutions to original equipment manufacturers (OEMs) from the initial product concept stage to Total Income 10,197 20,484 28,294 37,895
volume production through concept co-creation and product realization. EBITDA 965 1,912 2,829 4,282
❑ Product portfolio of the company consist of Printed circuit board, Radio Frequency identification EBITDA Margin 9.5% 9.3% 10.0% 11.3%
products, Electromagnetic and electromechanical parts, Motherboards, Memory products - DRAM PAT 541 1,231 1,837 2,948
modules, solid state, and USB drives etc. The company operates eleven manufacturing facilities in PAT Margin 5.3% 6.0% 6.5% 7.8%
North India and South India. The manufacturing facilities in Tamil Nadu are located in a special EPS (₹) 3.9 7.0 10.4 16.7
economic zone. Capex plans: The company has done a capex of Rs. 500 million in the Q1 FY24 and Debt/Equity 0.3 0.2 0.2 0.1
plans to spend ₹ 2,000-2,500 million in total for the year. P/B 14.6 7.0 6.3 5.3
❑ Acquistions: Company has acquired a 51% equity stake in Johari Digital Healthcare Limited (JDHL), a RoE 9.5% 8.0% 10.7% 14.6%
Jodhpur-based ODM design company in the medical devices business. The acquisition of JDHL is P/E 156.9 87.3 58.5 36.5
expected to be accretive to EBITDA and contribute 5-7% to the top-line growth of Syrma SGS. The Source: Company, Anand Rathi Research, Bloomberg. Note: Prices are as on 30-Oct-23
acquisition of JDHL is seen as a platform for growth in the medical devices business, with
expectations of sustained growth and 30%+ EBITDA margins.
Price Performance (Oct’22=100)
❑ Order book: The company has a total order book of approximately ₹ 35,000 million, with ₹ 22,000-
23,000 million expected to be delivered in the next 12 months. The order book as of June 30th is ₹ 240
35,000 million, with 25% in automotive, 40% in consumer, 8-9% in healthcare, 20-22% in industrial, 200
and 3-4% in IT and railways.
160
❑ We expect Syrma SGS to report revenue/EBITDA/PAT CAGR of 36%/50%/55% over FY23-25 mainly
backed by: (1) Increasing customer base with rising wallet share from existing customers, (2) focus 120
on technologies and innovation to increase product offerings, (3) entry into new business verticals 80
(aerospace & defence, medical) which will improve strong order book visibility, (4) highest capacity

Nov-22

Jul-23
Jul-23
Apr-23
May-23
May-23
Jun-23
Dec-22
Dec-22
Jan-23
Feb-23
Feb-23
Mar-23

Aug-23
Sep-23
Sep-23
Oct-22
Oct-22

Oct-23
in the industry; new capacity addition will give it an edge over peers. We assign a BUY rating on the
stock with a target price of ₹735 per share. SYRMA Nifty 500
 CMP: ₹83
IDFC First Bank Limited (IDFCFB) Target: ₹114

Rationale: 52 Week Low / High 52 / 101

Avg. Daily Volume (3M) 49,232
No. of Shares O/S (Mn.) / Mkt. Cap (₹Mn.) 6,722.45 / 5,87,110
❑ IDFC First Bank Ltd. (IDFCFB) was founded by merging erstwhile IDFC Bank (demerged from IDFC
Shareholding (Promoters/Institutional/Others) 37.5/ 33.2/ 29.3
Ltd) and Capital First in Dec 2018. Bank has transformed from infrastructure to retail banking in four
years since merger, increasing CASA ratio from 8.6% to 49.77% (March 31, 2023) and increased (In ₹ mn) FY-22 FY-23 FY-24E FY-25E
retail deposits from 27% to 76% of total deposits, and set up 809 branches and 925 ATMs. NIM 97,076 1,26,372 1,61,755 2,07,047
❑ V. Vaidyanathan – Best in-class execution track record- With over three decades of experience in Pre-provisioning profit 32,836 49,962 68,795 94,063
financial services in India, V. Vaidyanathan has seen India through multiple lenses – first as a banker PAT 1,323 28,850 34,115 48,172
(1990 – 2000, Citibank), (2000-2019, Head of ICICI Bank in retail division), as an entrepreneur NIM (%) 5.9% 6.2% 6.5% 6.7%
(2010-2019, Capital First), and now as an entrepreneur + banker (MD & CEO, IDFCFB). GNPA (%) 3.7 2.5 2.3 2.1
❑ The bank has achieved a collection efficiency of 99.5% in the current bucket, contributing to low Advance Growth (%) 17.2 28.8 28.0 26.0
SMA levels and improving asset quality. Gross NPA- Retail, Rural and SME as of Q2 FY24 stands at EPS (₹) 0.2 3.7 5.07 7.17
2.03% and Net NPA- Retail, Rural and SME as of Q2 FY24 stands at 0.73%. The company's asset CAR (%) 16.7 16.8 16.8 15.5
quality remains strong, with low NPAs and high collection percentages. Bank’s ability to raise P/BV 2.58 2.21 1.84 1.56
deposits remains strong and it sees no challenge in funding its aspired growth (25%) while also P/E 415.0 22.4 16.3 11.6
repaying high cost borrowings Source: Company, Anand Rathi Research, Bloomberg. Note: Prices are as on 30-Oct-23
❑ The company's fee-based businesses, such as tolls, credit cards, and third-party distribution, are
generating significant revenues. The company expects strong growth in these fee-based businesses
and believes that fee growth will outstrip balance sheet growth. Margins are expected to remain Price Performance (Oct’22=100)
stable as the cost of deposits repricing has peaked and the Indian system is tapering off. 200
❑ Bank is seeing strong performance on its NBFC book which is ~INR 150bn currently. More than 80% 170
of the book is rated A and above and rest is BBB and BB+. Only 1% of the book is BB and below
❑ Guidance: The bank expects the credit card business to breakeven by FY25. 24-25% of the credit 140

card mix are revolvers. The bank expects to reach 13-15% ROE by FY25 and 1.4-1.6% ROA by FY25. 110
❑ IDFC First has undergone the first phase of its transformation from an infra financier to a granular
80
retail lending bank. Investment in technology and building a scalable liability franchisee would keep

Jul-23
Jul-23
Apr-23
Apr-23
May-23
May-23
May-23
Jun-23
Jun-23
Nov-22
Nov-22
Dec-22
Dec-22

Feb-23
Feb-23
Mar-23
Mar-23

Aug-23
Aug-23
Jan-23
Jan-23
Oct-22
Oct-22
Oct-22
costs high in the near term, despite strong granular loan growth. We assign a BUY rating on the
stock with a target price of ₹114 per share. IDFCFIRSTB Nifty 500
 CMP: ₹ 554
DLF Limited (DLF) Target: ₹ 640

Rationale: 52 Week Low / High 336 / 577

Avg. Daily Volume (3M) 4,547.91
No. of Shares O/S (Mn.) / Mkt. Cap (₹Mn.) 2475.31/1,370,950
❑ DLF Limited, a leading domestic real estate developer with over 76 years of experience, has
Shareholding (Promoters/Institutional/Others) 74.1/ 21.2/ 4.7
completed 158 real estate projects, encompassing more than 340 msf. Notably, they've contributed
to iconic urban colonies in Delhi, including South Extension, Greater Kailash, Kailash Colony, and (In ₹ mn) FY-22 FY-23 FY-24E FY-25E
Haus Khas, as well as the creation of one of India's largest private townships, DLF City, in Gurgaon, Total Income 57,174 56,948 63,781 70,159
Haryana. EBITDA 17,438 17,255 19,134 21,399
❑ The company has a diverse portfolio encompassing residential developments, office spaces, retail, EBITDA Margin(%) 30.5 30.3 30.0 30.5
and additional ventures such as service management and hospitality. They hold the potential for PAT 15,004 20,340 22,777 33,880
215 million square feet of development and manage a rental portfolio of 42 msf. Their product PAT Margin(%) 26.2 35.7 35.7 48.3
pipeline includes 46 msf of upcoming projects, with an available pipeline valued at ₹ 56,250 million. EPS (₹) 6.1 8.2 9.2 13.7
❑ The company is re-entering Mumbai with a slum redevelopment project in Andheri West. This Debt/Equity 0.1 0.0 0.0 0.0
project is a joint venture with the Trident Group, with DLFU investing ₹ 4,000 million for a 51% P/B 3.8 3.7 3.4 3.2
stake. The planned development spans 3-3.5 msf, with the first 0.9 msf to be launched within 12 RoE 4.1% 5.4% 5.7% 7.5%
months. P/E 91.9 67.7 60.5 40.7
❑ For FY24, management expects pre-sales to surpass ₹ 1,20,000 million, driven by significant Source: Company, Anand Rathi Research, Bloomberg. Note: Prices are as on 30-Oct-23
inventory, upcoming launches, and strong demand. They plan to introduce 11.2 msf of projects
valued at ₹1,97,000 million, with the majority in Gurugram (7.7 msf, including ultra-luxury,
premium, and commercial segments), along with projects in Chennai (1.2 msf, luxury), Chandigarh Price Performance (Oct’22=100)
(1.8 msf, low-rise premium), and Noida (0.8 msf, commercial). 180

❑ The company has launched a project to create a new series of malls in various locations, with the 155
objective of expanding its retail footprint two-fold in the next 4-5 years. Concurrently, the company
130
is actively bolstering its sales, CRM and project execution teams.
❑ DLF's strong leadership in the Delhi-NCR region, a vast residential project pipeline, a significant 105
rental portfolio, ample land reserves with low carrying costs, and favorable market conditions
80
create a promising environment for substantial growth. We assign a BUY rating on the stock with a

Jul-23

Jul-23
Feb-23

Apr-23

May-23

May-23

Jun-23
Nov-22

Dec-22

Dec-22

Feb-23

Mar-23

Aug-23

Sep-23

Sep-23
Jan-23
Oct-22

Oct-22

Oct-23
target price of ₹640 per share.
DLF Nifty 500
MTAR Technologies Limited (MTARTECH) CMP: ₹2,471
Target: ₹2,970

52 Week Low / High 1472 / 2920

Rationale: Avg. Daily Volume (3M) 600.8
No. of Shares O/S (Mn.) / Mkt. Cap (₹Mn.) 30.8/76,010
❑ MTAR Technology is a leading precision engineering solutions company engaged in the manufacture Shareholding (Promoters/Institutional/Others) 39.1/ 32.9/ 28.0
of mission critical components with close tolerances (5-10 microns). The company serves customers
(In ₹ mn) FY-22 FY-23 FY-24E FY-25E
in the clean energy, nuclear, space and defence, sectors.
Total Income 3,220 5,738 8,464 12,104
❑ The company has continuously grown, contributing to India's nuclear, space, and defense programs,
EBITDA 944 1,540 2,370 3,450
as well as the global clean energy and aerospace sectors. They've also developed specialized import
EBITDA Margin (%) 29.3 26.8 28.0 28.5
substitutes like ball screws and water-lubricated bearings for their target industries. The company
PAT 609 1,034 1,565 2,410
has an order book of ₹ 10,780 million as of June 30,2023 and expects around ₹12,000 million
PAT Margin (%) 18.9 18.0 18.5 19.9
during the year. The management has maintained its FY24 order book target at ₹15,000 million.
EPS (₹) 19.8 33.6 50.9 78.3
❑ In the first quarter of FY24, the company achieved a 68% year-on-year revenue growth. During this
Debt/Equity 0.2 0.2 0.2 0.2
period, the company also reported EBIDTA margins of 22.6% and PAT margins of 13.3%. Looking P/B 14.6 12.3 10.6 8.7
ahead to FY24, the company has set revenue growth guidance in the range of 45% to 50% and aims RoE 11.7% 16.7% 21.7% 27.7%
to maintain EBIDTA margins at 28%. Their long-term goal is to become a ₹ 30,000 million revenue- P/E 125.1 73.6 48.6 31.6
based company by FY28.
Source: Company, Anand Rathi Research, Bloomberg. Note: Prices are as on 30-Oct-23
❑ The company is expanding its product range, including valves and semi-cryogenic engines in the
defense and space sectors. MTAR expects to secure defense contracts shortly, enabling direct
supply to major OEMs and the Ministry of Defense. They are also considering new facilities in Price Performance (Oct’22=100)
Europe and the US to enhance their supply chain and competitiveness. Their electrical and harness
200
system is undergoing certification and is expected to qualify by Q2 FY24.
❑ With a strong order book, new global aerospace and clean energy clients, and sustained growth 170

from its major clients, MTARTECH is poised to achieve its projected growth in FY24. The company’s 140
working capital has been affected by delayed payments from a key customer and a decrease in
110
payable days. However, the company is actively addressing this issue by reducing inventories and
enhancing payment terms. We assign a BUY rating on the stock with a target price of ₹2,970 per 80

Jul-23

Jul-23
Jun-23
Nov-22

Feb-23

Apr-23

May-23

May-23

Aug-23
Dec-22

Dec-22

Jan-23

Oct-23
Feb-23

Mar-23

Sep-23

Sep-23
Oct-22

Oct-22
share.
MTARTECH Nifty 500
 CMP: ₹1,609
TVS Motor Company Limited (TVSMOTOR) Target: ₹1,850

52 Week Low / High 968 / 1,617

Rationale: Avg. Daily Volume (3M) 1186
No. of Shares O/S (Mn.) / Mkt. Cap (₹Mn.) 475 / 7,64,580
❑ TVS Motors is among the largest two-wheeler manufacturers in India. It currently manufactures a Shareholding (Promoters/Institutional/Others) 50.2/ 41.6/ 8.2
wide range of 2-wheeler and 3- wheeler at its manufacturing facilities located at Hosur, Tamil Nadu;
Mysuru, Karnataka; and Nalagarh, Himachal Pradesh, with a total installed manufacturing capacity (In ₹ mn) FY-22 FY-23E FY-24E FY-25E
Total Income 2,07,905 2,63,781 3,03,348 3,48,850
of 55 lakh two-wheelers and 2 lakh three-wheelers per annum as on Mar’23.
EBITDA 19,617 26,747 32,899 40,137
❑ The company also set up a wholly-owned subsidiary in Indonesia i.e PT TVS Motor Company
EBITDA Margin 9.4% 10.1% 10.8% 11.5%
Indonesia for manufacturing motorcycles. In 2020, the company acquired 100% stake in The Norton
PAT 8,936 14,910 18,787 22,732
Motorcycle Co. Limited, UK. The company has a presence in all three categories of the two-wheeler
PAT Margin 4.3% 5.7% 6.2% 6.5%
industry, i.e., scooters, motorcycles, and mopeds.
EPS (₹) 18.8 31.3 39.5 47.8
❑ TVS has been able to expand its presence beyond the South and currently has a significant presence
Debt/Equity 0.33 0.37 0.22 0.22
in all the regions, in terms of sales. The efforts taken over the years to improve its PAN-India dealer
P/B 15.9 12.7 11.7 10.7
network have resulted in having a domestic presence across the categories, with scope for RoE 19.8 26.7 28.8 31.6
improvement in the west and north regions. P/E 85.5 51.4 40.7 33.1
❑ In FY23,it recorded higher growth in the motorcycle and scooter segments as compared to that of
Source: Company, Anand Rathi Research, Bloomberg. Note: Prices are as on 30-Oct-23
the industry led by its strong presence, new product launches and increasing market share, resulting
in the fourth and second-largest player in the respective domestic segments. its exports market
contributed around 28% of total revenue from 24% in FY19. Price Performance (Oct’22=100)
❑ During Q1FY24, company reported a healthy growth of 20.1% YoY to ₹72,179 million in Q1FY24. The 180
EBITDA of the company grew by 27% YoY to ₹7,638 million while profit after tax grew by 46% YoY to
155
₹4,677 million. The company is witnessing good demand in the urban market, while rural market
130
remained moderate. It aims to grow faster than the industry in domestic and exports market. The
company plans to launch new variants into its EV segment in coming years. 105
❑ We believe company is poised to outperform the industry on the back of new product launches in 80

Jun-23

Jul-23

Jul-23
Nov-22

Feb-23

Apr-23

May-23

May-23

Aug-23
Dec-22

Dec-22

Jan-23

Feb-23

Mar-23

Sep-23

Sep-23
Oct-22

Oct-22

Oct-23
ICE & EV segments, higher focus on exports and premiumization, operating leverage, benign input
prices and price hikes. company to report higher volume growth driven by a recovery in the
domestic 2W market and in exports. We assign BUY rating on the stock with a target price of
TVSMOTOR Nifty 500
₹1,850 per share.
 CMP: ₹1,497
Mahindra & Mahindra Limited (M&M) Target: ₹1,770

Rationale: 52 Week Low / High 1,123 / 1,670

Avg. Daily Volume (3M) 2840.86
No. of Shares O/S (Mn.) / Mkt. Cap (₹Mn.) 1243.5 /1,862,253
❑ Mahindra & Mahindra is the most diversified automobile company in India with presence across Shareholding (Promoters/Institutional/Others) 19.3 / 67.0 / 13.7
two-wheelers, three-wheelers, PVs, CVs, tractors and farm equipment. M&M has a strong position
in the domestic large UV and tractor markets, with a market share of ~43% in the latter. In terms of (In ₹ mn) FY-22 FY-23E FY-24E FY-25E
volumes, M&M is the world’s largest tractor manufacturer and among the top four PV Total Income 9,01,706 12,12,686 13,58,208 15,48,357
manufacturers in India. EBITDA 1,45,797 2,02,853 2,43,423 2,87,240
❑ Through its subsidiaries and Group companies, M&M is present in financial services, auto EBITDA Margin 16.2% 16.7% 17.9% 18.6%
components, hospitality, infrastructure, retail, logistics, steel trading and processing, IT businesses, PAT 72,530 1,13,745 1,30,807 1,51,736
agribusinesses, aerospace, consulting services, defence, energy and industrial equipment, etc. PAT Margin 8.0% 9.4% 9.6% 9.8%
❑ M&M has been the dominant market leader in the domestic tractor market, commanding a market EPS (₹) 59.2 92.4 106.3 123.3
share of 42.9% in Q1FY24 (41.2% in FY23). With its offerings across different brands of Mahindra, Debt/Equity 1.59 1.58 1.2 1.2
P/B 3.9 3.4 3.1 2.9
Swaraj, Trakstar and soon to be launched Oja and its well-entrenched sales and service network, it
RoE 16.4 22.1 21.4% 23.4%
is expected to maintain its leadership position going forward as well.
P/E 25.2 16.2 14.1 12.1
❑ M&M has unveiled its electric SUV – Thar.e, which would be developed as part of the born electric
range and would not be an electric conversion of the ICs Thar. It will be based on its new platform Source: Company, Anand Rathi Research, Bloomberg. Note: Prices are as on 30-Oct-23

called the INGLO platform. Thar.e will have a new Mahindra Logo as copper twin peak will be used
only on one EV – XUV400. The timeline to launch Thar.e is yet to be decided. Broadly, M&M has a
Price Performance (Oct’22=100)
healthy pipeline to introduce five products on the INGLO platform from Dec’24.
❑ In Q1FY24, on a consolidated basis, the company reported net profit of 60% YoY to ₹ 35084 million 140

led by 19% YoY rise in revenue from operations to ₹338,916 million in Q1FY24. EBITDA grew 44% 125
YoY to ₹73,142 million during the quarter.
110
❑ In Aug’23, the company launched seven new OJA tractor models, designed for the Indian market,
on compact and small utility platforms. The company also has plans to launch the OJA range in 95

North America, ASEAN, Brazil, Australia, South Africa, Europe, and the SAARC region. The 80

Jul-23

Jul-23
May-23

Jun-23
Nov-22

Dec-22

Dec-22

Apr-23

May-23

Aug-23
Jan-23

Feb-23

Feb-23

Mar-23

Sep-23

Sep-23
Oct-22

Oct-22

Oct-23
introduction of new range of OJA tractors is expected to boost its topline in the future. We believe
the company’s strategic approach with strong balance sheet will continue to leverage its
M&M Nifty 500
performance. We assign a BUY rating on the stock with a target price of ₹1,770 per share.
Disclaimer:

Analyst Certification

❑ The views expressed in this Research Report accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the compensation of the research analyst(s) was, is,
or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s) in this report. The research analysts are bound by stringent internal regulations and
also legal and statutory requirements of the Securities and Exchange Board of India (hereinafter “SEBI”) and the analysts’ compensation are completely delinked from all the other companies and/or
entities of Anand Rathi, and have no bearing whatsoever on any recommendation that they have given in the Research Report

Ratings Methodology

❑ Analysts’ ratings and the corresponding expected returns take into account our definitions of Large Caps, Mid-Caps & Small Caps as described in the Ratings Table below:

Ratings Guide (12 months) Buy Hold Sell

Large Caps (Top 100 companies) >15% 0%-15% Below 0%
Mid/Small Caps (101st-250th company) >20% 0%-20% Below 0%
Small Caps (251st company onwards) >25% 0%-25% Below 0%
Research Disclaimer and Disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014

Anand Rathi Share and Stock Brokers Ltd. (hereinafter refer as ARSSBL) (Research Entity, SEBI Regn No. INH000000834, Date of Regn. 29/06/2015) is a subsidiary of the Anand Rathi Financial Services Ltd.
ARSSBL is a corporate trading and clearing member of Bombay Stock Exchange Ltd (BSE), National Stock Exchange of India Ltd. (NSEIL), Metropolitan Stock Exchange of India Ltd. (MSE), and also depository
participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd. (CDSL), ARSSBL is engaged into the business of Stock Broking, Depository Participant, Mutual Fund distributor.

The research analysts, strategists, or research associates principally responsible for the preparation of Anand Rathi research have received compensation based upon various factors, including quality of
research, investor client feedback, stock picking, competitive factors and firm revenues.

General Disclaimer: - This Research Report (hereinafter called “Report”) is meant solely for use by the recipient and is not for circulation. This Report does not constitute a personal recommendation or take
into account the particular investment objectives, financial situations, or needs of individual clients. The recommendations, if any, made herein are expression of views and/or opinions and should not be
deemed or construed to be neither advice for the purpose of purchase or sale of any security, derivatives or any other security through ARSSBL nor any solicitation or offering of any investment /trading
opportunity on behalf of the issuer(s) of the respective security (ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the readers. No
action is solicited based upon the information provided herein. Recipients of this Report should rely on information/data arising out of their own investigations. Readers are advised to seek independent
professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. This Report has been prepared on the basis of publicly available
information, internally developed data and other sources believed by ARSSBL to be reliable.

ARSSBL or its directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information / opinions / views.
While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of ARSSBL shall be liable for any direct,
indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information / opinions / views contained in this Report. The price and
value of the investments referred to in this Report 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. ARSSBL does not provide tax advice to its clients, and all investors are strongly advised to consult with their tax advisers regarding taxation aspects of any potential investment.

Continued…
Contd…

Opinions expressed are our current opinions as of the date appearing on this Research only. We do not undertake to advise you as to any change of our views expressed in this Report. Research Report may
differ between ARSSBL’s RAs and/ or ARSSBL’s associate companies on account of differences in research methodology, personal judgment and difference in time horizons for which recommendations are
made. User should keep this risk in mind and not hold ARSSBL, its employees and associates responsible for any losses, damages of any type whatsoever.
ARSSBL and its associates or employees may; (a) from time to time, have long or short positions in, and buy or sell the investments in/ security of company (ies) mentioned herein or (b) be engaged in any
other transaction involving such investments/ securities of company (ies) discussed herein or act as advisor or lender / borrower to such company (ies) these and other activities of ARSSBL and its associates
or employees may not be construed as potential conflict of interest with respect to any recommendation and related information and opinions. Without limiting any of the foregoing, in no event shall ARSSBL
and its associates or employees or any third party involved in, or related to computing or compiling the information have any liability for any damages of any kind.
Details of Associates of ARSSBL and Brief History of Disciplinary action by regulatory authorities & its associates are available on our website i.e. www.rathionline.com

Disclaimers in respect of jurisdiction: This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or
other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject ARSSBL to any registration or licensing requirement within such
jurisdiction(s). No action has been or will be taken by ARSSBL in any jurisdiction (other than India), where any action for such purpose(s) is required. Accordingly, this Report shall not be possessed, circulated
and/or distributed in any such country or jurisdiction unless such action is in compliance with all applicable laws and regulations of such country or jurisdiction. ARSSBL requires such recipient to inform
himself about and to observe any restrictions at his own expense, without any liability to ARSSBL. Any dispute arising out of this Report shall be subject to the exclusive jurisdiction of the Courts in India.

Copyright: - This report is strictly confidential and is being furnished to you solely for your information. All material presented in this report, unless specifically indicated otherwise, is under copyright to
ARSSBL. None of the material, its content, or any copy of such material or content, may be altered in any way, transmitted, copied or reproduced (in whole or in part) or redistributed in any form to any other
party, without the prior express written permission of ARSSBL. All trademarks, service marks and logos used in this report are trademarks or service marks or registered trademarks or service marks of ARSSBL
or its affiliates, unless specifically mentioned otherwise.

Contd…
Contd.

❑ Statements on ownership and material conflicts of interest, compensation - ARSSBL and Associates
❑ Answers to the Best of the knowledge and belief of ARSSBL/ its Associates/ Research Analyst who is preparing this report

Answers to the Best of the knowledge

and belief of the ARSSBL/ its Associates/
Sr. No. Statement
Research Analyst who is preparing this
report

ARSSBL/its Associates/ Research Analyst/ his Relative have any financial interest in the subject company? Nature of Interest (if applicable), is given
1 NO
against the company’s name?.
ARSSBL/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject company, at
2 the end of the month immediately preceding the date of publication of the research report or date of the public appearance?. NO
ARSSBL/its Associates/ Research Analyst/ his Relative have any other material conflict of interest at the time of publication of the research report or at
3 NO
the time of public appearance?.
4 ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation from the subject company in the past twelve months. NO
ARSSBL/its Associates/ Research Analyst/ his Relative have managed or co-managed public offering of securities for the subject company in the past
5 NO
twelve months.
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation for investment banking or merchant banking or brokerage
6 NO
services from the subject company in the past twelve months.
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation for products or services other than investment banking or
7 merchant banking or brokerage services from the subject company in the past twelve months. NO
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation or other benefits from the subject company or third party in
8 NO
connection with the research report.
9 ARSSBL/its Associates/ Research Analyst/ his Relative have served as an officer, director or employee of the subject company. NO
10 ARSSBL/its Associates/ Research Analyst/ his Relative has been engaged in market making activity for the subject company. NO
Contd…

Other Disclosures pertaining to distribution of research in the United States of America

Research report is a product of Anand Rathi Share and Stock Brokers Ltd. (hereinafter refer as ARSSBL) under Marco Polo Securities 15a6 chaperone service which is the employer of the research analyst(s)
who has prepared the research report. The research analyst(s) preparing the research report is/are resident outside the United States (U.S.) and are not associated persons of any U.S. regulated broker-dealer
and therefore the analyst(s) is/are not subject to supervision by a U.S. broker-dealer, and is/are not required to satisfy the regulatory licensing requirements of FINRA or required to otherwise comply with
U.S. rules or regulations regarding, among other things, communications with a subject company, public appearances and trading securities held by a research analyst account.
Research reports are intended for distribution by only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the U.S. Securities and Exchange Act, 1934 (the Exchange Act) and interpretations
thereof by U.S. Securities and Exchange Commission (SEC) in reliance on Rule 15a 6(a)(2). If the recipient of this report is not a Major Institutional Investor as specified above, then it should not act upon this
report and return the same to the sender. Further, this report may not be copied, duplicated and/or transmitted onward to any U.S. person, which is not the Major Institutional Investor. In reliance on the
exemption from registration provided by Rule 15a-6 of the Exchange Act and interpretations thereof by the SEC in order to conduct certain business with Major Institutional Investors, ARSSBL has entered
into a chaperoning agreement with a U.S. registered broker dealer, Marco Polo Securities Inc. ("Marco Polo").
1. ARSSBL or its Affiliates may or may not have been beneficial owners of the securities mentioned in this report.
2. ARSSBL or its affiliates may have or not managed or co-managed a public offering of the securities mentioned in the report in the past 12 months.
3. ARSSBL or its affiliates may have or not received compensation for investment banking services from the issuer of these securities in the past 12 months and do not expect to receive compensation for
investment banking services from the issuer of these securities within the next three months.
4. However, one or more of ARSSBL or its Affiliates may, from time to time, have a long or short position in any of the securities mentioned herein and may buy or sell those securities or options thereon,
either on their own account or on behalf of their clients.
5. As of the publication of this report, ARSSBL does not make a market in the subject securities.
6. ARSSBL or its Affiliates may or may not, to the extent permitted by law, act upon or use the above material or the conclusions stated above, or the research or analysis on which they are based before the
material is published to recipients and from time to time, provide investment banking, investment management or other services for or solicit to seek to obtain investment banking, or other securities
business from, any entity referred to in this report.

❑ As of the publication of this report, ARSSBL does not make a market in the subject securities.
❑ Additional information on recommended securities/instruments is available on request.
❑ Compliance officer-Deepak Kedia, email id - deepakkedia@rathi.com, Contact no. +91 22 6281 7000.
❑ Grievance officer-Madhu Jain-email id- grievance@rathi.com, Contact no. +91 22 6281 7191
❑ ARSSBL registered address: Express Zone, A Wing, 9th Floor, Western Express Highway, Diagonally Opposite Oberoi Mall, Malad (E), Mumbai – 400097. Tel No: +91 22 6281 7000 | Fax No: +91 22 4001
3770 | CIN: U67120MH1991PLC064106.