Systematix

Institutional Equities

Elin Electronics 10 August 2023

New product launches to support growth revival in 2H

RESULT UPDATE Elin Electronics’ (ELIN) weak 1Q result was driven by all segments. After a likely
Sector: EMS Rating: BUY muted 2Q, management expects healthy revival in 2H on expectations of good
festive demand and strong product launch pipeline. Thus, for FY24, management
CMP: Rs 143 Target Price: 197
reiterated low-to-mid-teens revenue growth, with EBITDA margin reaching 7%. A
Stock Info Rs 2.25bn capex (1Q: Rs 416mn) will be to set up capacity for economy-mid
Sensex/Nifty 65,688/19,543 segment products, mainly in small appliances. Mixer grinder capacity for entry and
Bloomberg ELIN IN mid-range products is expected to be operational by Sep 2023. Backward
Equity shares (mn) 47.9 integration through PLI scheme for LED lighting could drive margins. We retain our
52-wk High/Low 232/118 estimates and expect 15%/29%/53% CAGR in revenue/EBITDA/PAT over FY23-25E,
Face value Rs 5 after a weak 11%/6%/-1% CAGR over FY20-23, with EBITDA margin expanding
M-Cap Rs 7bn/ USD 84mn 16sss0bps to 7.7%. RoIC too should expand 580bps to ~17% in FY25E. On
3-m avg turnover USD 0.9mn
expectation of a healthy revival in business performance, we maintain BUY on ELIN
Financial Snapshot (Rs mn) with an unchanged target price of Rs 197, based on 15x FY25E EPS of Rs 13.1.
Y/E Mar FY23 FY24E FY25E Healthy growth is essential for the scrip to get re-rated.
Net sales 10,755 12,368 14,223
Refer our Sector initiation note on EMS sector.
EBITDA 652 898 1,090
OPM (%) 6.1 7.3 7.7 Weak revenue and margins in 1Q: Revenue declined 14% YoY and 6% QoQ driven by
PAT (adj.) 269 495 628 weakness in all the segments. EBITDA margin expanded 57bps QoQ but remained
EPS (adj.) (Rs) 5.6 10.3 13.1 low at 3.9%. PAT rose 21% YoY and 136% QoQ on a low base. Softening in RM prices
PE (x) 25.5 13.8 10.9 impacted revenue despite healthy volume growth in few categories (motor, lighting).
P/B (x) 1.4 1.3 1.2 Low margin was due to negative operating leverage on low volumes and revenue.
EV/EBITDA (x) 9.8 7.1 5.8 Delay in new product launch (by a quarter) also impacted growth. Inventory buildup
RoE (%) 5.5 9.2 10.5
ahead of festive season led to rise in working capital days (76 days vs. 60-70 targeted).
RoCE (%) post tax 9.8 12.2 13.9
Net-D/E (x) (0.1) (0.1) (0.1) All segments drove weak results; recovery likely ahead: Lighting, Fans & Switches
revenue declined 18% YoY and 8% QoQ. Lighting segment grew 5% YoY while fans
Shareholding Pattern (%)
revenue hurt on lower offtake of fans due to unseasonal rains. Management expects
Jun'23 Mar'23 Dec'22
Promoter 33.0 33.0 32.9
8-10% growth in lighting revenue in FY24; newly launched (BLDC, TPW fans) and
- Pledged upcoming products will drive recovery in fans revenue. Continued weakness in
FII 1.5 2.8 6.2 kitchen and home care categories dragged small appliances revenue (down 15% YoY
DII 14.4 18.8 13.2 and 25% QoQ). Management expects growth to pick up in hair dryers and hair
Others 51.2 45.5 47.7 straighteners over the coming quarters. Lower offtake of fans hurt motors revenue
(down 10% YoY; volume flat). ELIN plans to manufacture AC ODU and Chimney soon.
Stock Performance (1-year)
288 Management guidance intact: 2Q is likely to be soft and a strong revival is expected
241
in 2H. Thus, for FY24, management expects low-to-mid-teen revenue growth, with
EBITDA margin gradually scaling up to 7% (better CU, superior mix etc.). Lighting
194
revenue is expected to rise 8-10%; new product launches (TPW and BLDC fans) will
147 drive fans growth. In small appliances, mixer grinder capacity expansion in Ghaziabad
100 for entry and mid-range products is expected to be operational by Sep 2023. Robust
traction in Personal Care should sustain, led by trimmers and, heated hairbrush. A
Jul-23
Jan-23

Apr-23
Mar-23
Dec-22

Aug-23
May-23

Jun-23

Rs 2.25bn capex (1Q: Rs 416mn) will be for economy-mid segment products.

ELIN Sensex
New product launches, EMS foray to drive growth: ELIN launched BLDC and TPW
fans in 1Q. It has a strong launch plan across categories (incl. AC ODU motor) over
Ashish Poddar next one year. EMS foray is also under consideration for which it has approached
ashishpoddar@systematixgroup.in
+91 22 6704 8039 existing clients for electronics assembly in existing categories (LED lighting, fans, AC,
Mixter Grinder etc.). Once stabilized, it will extend business to new clients and new
Pranay Shah
pranayshah@systematixgroup.in categories. Team is already in place to support manufacturing and sales. ELIN expects
revenues to start flowing in from 4QFY24 from the EMS business. (concall KTAs)
Shraddha Kapadia
shraddhakapadia@systematixgroup.in

Investors are advised to refer disclosures made at the end of the research report.

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10 August 2023 Elin Electronics

1QFY24 concall key highlights and outlook

1QFY24 results
• Revenue down 14% YoY and 6% QoQ
• EBITDA margin 3.9%, up 57bps QoQ
• PAT up 21% YoY and 136% QoQ
• Softening in RM prices impacted revenue despite healthy volume growth in few
categories (motor, lighting)
• Low margin was due to negative operating leverage on low volume/revenue
• New product launches are delayed by 1 quarter
Guidance remains intact:
• FY24: 2Q is likely to be soft; strong recovery likely in 2H
• Margins to gradually scale up to 6-7% and then increase further
• Increase in capacity utilisation, superior product mix, better RM sourcing and
automation should aid margin
Appointed SR Batliboi (EY unit) as statutory auditor
Capex: Rs 2.25bn for FY24
• In 1Q, incurred capex of Rs 416mn mainly on Trimmers and BLDC fans and Tools &
dies for new products
• Enhancing Setting up capacity for economy-mid segment
• New plant with better efficiency will also aid margin
• Asset turnover to increase to 4-4.5x and then will aim for 5x
New Product Launches
• Launched BLDC and TPW fans in 1Q
• Strong launch plans across categories (incl. AC ODU motor) over next one year
EMS foray
• Already does electronics assembly for lighting and fans for captive use
• Approaching existing clients for electronics assembly in existing categories (LED
lighting, fans, AC, Mixter Grinder etc.)
• Will extend to new clients and new categories going forward
• Building team to support manufacturing and sales
• Expect revenues from 4QFY24
Lighting, Fans & Switches: down 18% YoY and 8% QoQ
• Lighting up 5% YoY; expects 8-10% revenue growth in FY24
• Fans revenue hurt due to lower offtake of fans due to unseasonal rains
• Expect growth to return in 2H on the back of new product launches (TPW etc.)
Small Appliances: Rev down 15% YoY and 25% QoQ
• Kitchen and Home care revenue remained soft on weak macro and consumption

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10 August 2023 Elin Electronics

• Expect growth to pick up in hair dryers and hair straighteners in coming quarters
FHP: Rev down 10% YoY, up 17% QoQ
• Volume flat YoY; QoQ up 17% in mixer grinders and 42% in chimney motors
• Motors for fans impacted on lower offtake of fans due to unseasonal rains and
cooler weather conditions
• Plans manufacturing of AC ODU and Chimney soon
WC cycle: Normal range 60-70 days
• Inventory buildup ahead of festive season led to rise in WC days in 1Q (76 days)

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10 August 2023 Elin Electronics
Exhibit 1: Elin Electronics (Consolidated) – Quarterly results
(Rs mn) 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 YoY (%) QoQ (%)
Total Income 2,941 3,103 2,023 2,687 2,538 (14) (6)
Raw material costs 2,247 2,266 1,445 2,009 1,871 (17) (7)
Employee costs 356 320 276 342 348 (2) 2
Other expenses 226 204 169 248 221 (2) (11)
EBITDA 112 313 132 88 98 (12) 11
Depreciation 43 41 44 59 48 13 (17)
Finance costs 33 41 31 25 27 (17) 8
Other income 2 1 1 18 27 1,088 49
PBT 38 232 58 23 49 29 117
Tax 7 60 13 7 12 69 73
PAT (after JV/associate) 31 172 46 16 38 21 136
EPS (Rs) 0.8 4.2 1.0 0.3 0.8 3 136
As % Total Income YoY (bps) QoQ (bps)
Gross margin 23.6 27.0 28.5 25.2 26.3 269 104
Emp cost 12.1 10.3 13.6 12.7 13.7 159 99
Other exp 7.7 6.6 8.4 9.2 8.7 104 (52)
EBITDA margin 3.8 10.1 6.5 3.3 3.9 6 57
Dep 1.5 1.3 2.2 2.2 1.9 45 (27)
Interest 1.1 1.3 1.5 0.9 1.1 (4) 13
Other income 0.1 0.0 0.1 0.7 1.1 100 39
PBT 1.3 7.5 2.9 0.8 1.9 65 110
Effective tax rate 18.0 25.9 21.7 29.5 23.5 548 (603)
PAT margin 1.1 5.5 2.3 0.6 1.5 42 89
Segment Revenues YoY (%) QoQ (%)
Lighting, Fans and Switches 1,015 873 753 909 832 (18) (8)
Small Appliances 619 872 314 700 527 (15) (25)
FHP Motor 601 535 352 464 541 (10) 17
Other EMS 101 78 75 119 93 (8) (22)
Total EMS 2,336 2,358 1,494 2,192 1,993 (15) (9)
Precision Comp. & Others 596 673 488 496 539 (10) 9
Medical Diagnostics Cartridges 9 72 41 - 6 (33) na
Total Non-EMS 605 745 529 496 545 (10) 10
Segment Mix
Lighting, Fans and Switches 35 28 37 34 33
Small Appliances 21 28 16 26 21
FHP Motor 20 17 17 17 21
Other EMS 3 3 4 4 4
Total EMS 79 76 74 82 79
Precision Comp. & Others 20 22 24 18 21
Medical Diagnostics Cartridges 0 2 2 - 0
Total Non-EMS 21 24 26 18 21
Source: Company, Systematix Institutional Research

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10 August 2023 Elin Electronics
Exhibit 2: Elin - Revenue breakdown (Rs mn)
FY19 FY20 FY21 FY22 FY23 1QFY24

Lighting, Fans and Switches 3,161 2,928 2,558 3,325 3,551 831

Lighting 2,674 2,418 1,870 2,352 2,529 596

Flashlights 361 352 346 310 329 103

Fans 6 12 213 517 528 104

Switches 120 146 129 146 165 28

Small Appliances 2,296 1,939 1,934 2,551 2,505 526

Kitchen & Home Care 1,786 1,520 1,635 1,972 1,781 336

Personal Care 510 419 299 579 724 190

FHP Motor 1,021 1,191 1,844 2,369 1,952 541

Consumer Durables 1,696 1,396 415

Fans 530 349 76

Others 143 207 50

Other EMS 177 301 296 309 373 93

Total EMS 6,655 6,359 6,632 8,554 8,381 1,991

Precision Component/ Others 1,628 1,455 1,571 2,215 2,253 539

Medical Cartridges - 42 421 167 121 6

Total Non-EMS 1,628 1,497 1,992 2,382 2,374 545

Total Revenue 8,283 7,856 8,624 10,936 10,755 2,536

Source: Company, Systematix Institutional Research

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10 August 2023 Elin Electronics

Quarterly performance
Exhibit 3: Revenue mix trend - productwise Exhibit 4: Revenue mix trend - industrywise

100% 3 3 3 4 4 100%
3 4
24 19 20 22 24 18 21 24 19 21 24 18 21
26
75%
20 20 17 75%
22 17 17 21
50% 26
15 26 21 28 16 21
50%
25% 76 81 79 76 82 79
37 74
36 31 35 28 34 33
25%
0%
3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24
Lighting, Fans and Switches Small Appliances 0%
FHP Motor Precision Components & Others 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24
EMS Other Non EMS
Other EMS Medical Diagnostics Cartridges

Exhibit 5: Total Income - quarterly trend Exhibit 6: Expenses as % total income - quarterly trend
(Rs mn) (%) (%)
77 76.4 13.6 13.7 15
4,000
12.7
75.0 74.7
3,170 3,103
2,941 75 10.3 74.8 73.7 11
3,000 2,687 11.9 12.1
2,585 2,538 8.4
10.8
2,023 72 73.0 9.2 8.7 8
2,000 7.7
7.0 6.6 6.6 71.5
70 4
1,000
67 0
3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24
0
Raw material Employee (RHS) Others (RHS)
3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24

Exhibit 7: EBITDA, PAT & margin trend Exhibit 8: Earnings - quarterly trend
(Rs mn) (%) (Rs)
350 14 6

10.1
263 11 4.2
5
7.9
6.2 6.5 3.2
175 7
3
3.8 3.9
3.3
88 4 1.7
161

251
129

112

313
172

132
69

2
16

38
31

46

88

98

1.0 0.8
0.8
0 0 0.3
3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24
0
EBITDA PAT EBITDA margin (RHS) 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24

Source: Company, Systematix Institutional Research

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10 August 2023 Elin Electronics
Exhibit 9: Lighting, Fans and Switches - Revenue trend Exhibit 10: Small Appliances - Revenue trend
(Rs mn) (Rs mn)
1,200 938 872
1,015 834
973
921 909
873 700
900 832 704
753 619
527
600 469 399
314

300 235

0 0
3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24

Exhibit 11: FHP Motor - Revenue trend Exhibit 12: Precision Components & Others - Revenue trend
(Rs mn) (Rs mn)
700 645 800
601 673
566
535 541 609 596
590
525 464 600 539
488 496
352
350 400

175 200

0 0
3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24

Source: Company, Systematix Institutional Research

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10 August 2023 Elin Electronics

Annual performance
Exhibit 13: Segment-wise revenue mix
FY19 FY20 FY21 FY22 FY23 FY24E FY25E
Total revenue (Rs mn) 8,283 7,856 8,624 10,936 10,755 12,368 14,223
Revenue mix (%)
Lighting, Fans and Switches 38 37 30 30 33 33 33
Small Appliances 28 25 22 23 23 23 23
FHP Motor 12 15 21 22 18 18 18
Other EMS 2 4 3 3 3 3 3
Total EMS 80 81 77 78 78 78 78
Total Non-EMS 20 19 23 22 22 22 22
Source: Company

Exhibit 14: Revenue growth trend Exhibit 15: Gross, EBITDA and PAT margin trend
(Rs bn) (%) (%)
16 14.2
FY20-23 CAGR: 11% 35 29.5 10
12.4 27.6 25.9 26.9 27.1
FY23-25E CAGR: 15% 25.4
12 10.9 10.8 26 8
8.6 7.7 7.2 7.3 7.7
7.9 18 7.1 5
8 6.1
9 4.0 4.0 4.4 3
3.5 3.6
4 2.5
0 0
FY20 FY21 FY22 FY23 FY24E FY25E
0
Gross margin EBITDA margin (RHS) PAT margin (RHS)
FY20 FY21 FY22 FY23 FY24E FY25E

Exhibit 16: PAT growth trend Exhibit 17: NWC cycle trend
(Rs mn) (%) (Days)
FY20-23 CAGR: -1%

82
800 5 90
77

FY23-25E CAGR: 53%

67
67

66
66
67

66
66
59

600 4.4 4 68
49

48
4.0 4.0

43
43
44
42
42

43
42

42
40

3.6
37

400 3.5 3 45 33
32

2.5
200 1 23
275 348 391 269 495 628
0 0 0
FY20 FY21 FY22 FY23 FY24E FY25E Debtor Days Inventory Days Creditor Days Net-WC Days
PAT PAT margin (RHS) FY20 FY21 FY22 FY23 FY24E FY25E

Exhibit 18: RoIC, RoE trend Exhibit 19: Net-debt/Equity trend

(%) (x)
30 0.5 0.4
0.3
23 17 18 17 17 0.3 0.2
15
15 11
0.0 (0.1) (0.1)
8 12 13 13
9 11 (0.1)
(0.3)
0 5
FY20 FY21 FY22 FY23 FY24E FY25E (0.5)
RoE RoIC FY20 FY21 FY22 FY23 FY24E FY25E

Source: Company, Systematix Institutional Research

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10 August 2023 Elin Electronics

Valuation and View

ELIN is India’s leading fractional horsepower motor manufacturer and an EMS
company for lighting, fans, and small/ kitchen appliances. It serves under both OEM
and ODM business models and has an R&D facility at Ghaziabad. Three of its
manufacturing facilities are strategically located in Ghaziabad (Uttar Pradesh), Baddi
(Himachal Pradesh) and Verna (Goa). Its top 5 customers are Signify, Versuni, Philips
India, Havells, and IFB; Top 10 customers account for ~75% of its revenue share.
We retain our estimates and expect 15%/29%/53% CAGR in revenue/EBITDA/PAT
over FY23-25E, after a weak 11%/6%/-1% CAGR over FY20-23, with EBITDA margin
expanding 160bps to 7.7%. RoIC too should expand 580bps to ~17% in FY25E.
On expectation of a healthy revival in business performance, we maintain BUY on
ELIN with an unchanged target price of Rs 197, based on 15x FY25E EPS of Rs 13.1.
Healthy growth is essential for the scrip to get re-rated.
Exhibit 20: Change in estimates
Old estimates New estimates % Variance
(Rs mn)
FY24 FY25 FY24 FY25 FY24 FY25
Total Income 12,368 14,223 12,368 14,223 - -
EBITDA 898 1,090 898 1,090 - -
EBITDA margin (%) 7.3 7.7 7.3 7.7
PAT 495 628 495 628 - -
EPS 10.3 13.1 10.3 13.1 - -
Source: Systematix Institutional Research

Key Risks
• Demand slowdown in the key product categories
• Volatility in RM prices

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10 August 2023 Elin Electronics

FINANCIALS (CONSOLIDATED)
Profit & Loss Statement Balance Sheet
YE: Mar (Rs mn) FY21 FY22 FY23 FY24E FY25E YE: Mar (Rs mn) FY21 FY22 FY23 FY24E FY25E
Net revenues 8,624 10,938 10,755 12,368 14,223 Share capital 68 204 240 240 240
Growth (%) 10 27 (2) 15 15 Net worth 2,623 3,031 4,931 5,378 5,959
Direct costs 6,247 8,157 7,967 9,039 10,366 Total debt 1,140 1,025 784 714 644
Gross Margin (%) 27.6 25.4 25.9 26.9 27.1 Minority interest - - - - -
SG&A 1,712 1,991 2,136 2,432 2,768 DT Liability/(Asset) 78 92 104 114 124
EBITDA 665 790 652 898 1,090 Capital Employed 3,840 4,149 5,818 6,205 6,726
EBITDA margins (%) 7.7 7.2 6.1 7.3 7.7 Net tangible assets 1,606 1,876 2,313 2,449 2,552
- Depreciation 118 144 186 214 246 Net Intangible assets 7 4 11 11 11
Other income 25 9 23 49 57 Goodwill - - - - -
Interest Exp 97 127 131 74 64 CWIP 1 0 1 1 1
PBT 475 529 358 659 836 Investments (Strategic) - - - - -
Effective tax rate (%) 26.6 26.0 24.9 24.9 24.9 Investments (Financial) 136 12 265 465 665
+ Associates/(Minorities) - - - - - Current Assets 3,280 3,385 3,755 4,306 4,930
Net Income 348 391 269 495 628 Cash 54 49 997 718 561
Adjusted income 348 391 269 495 628 Current Liabilities 1,243 1,178 1,524 1,745 1,995
WANS 14 41 48 48 48 Working capital 2,037 2,207 2,231 2,561 2,935
FDEPS (Rs) 7 8 6 10 13 Capital Deployed 3,840 4,149 5,818 6,205 6,726
FDEPS growth (%) 27 12 (31) 84 27 Contingent Liabilities 74 89 - - -
Source: Company, Systematix Institutional Research Source: Company, Systematix Institutional Research

Cash Flow Ratios @ Rs 143

YE: Mar (Rs mn) FY21 FY22 FY23 FY24E FY25E YE: Mar FY21 FY22 FY23 FY24E FY25E
EBIT (incl. other income) 76 118 109 684 843 P/E (x) 19.7 17.5 25.5 13.8 10.9
+ Non-cash items 118 144 186 214 246 EV/EBITDA (x) 11.7 9.9 9.8 7.1 5.8
OCF before WC changes 194 261 295 898 1,090 EV/sales (x) 0.9 0.7 0.6 0.5 0.4
- Incr./(decr.) in WC 936 130 (66) 330 374 P/B (x) 0.7 1.9 1.4 1.3 1.2
Others including taxes (406) (381) (263) 155 199 RoE (%) 13.3 12.9 5.5 9.2 10.5
Operating cash-flow (336) 513 623 413 517 RoCE (%) 16.6 16.4 9.8 12.2 13.9
- Capex 197 424 513 350 350 ROIC 18.0 16.9 10.9 14.6 16.4
Free cash-flow (533) 89 111 63 167 DPS (Rs per share) - 1.0 1.0 1.0 1.0
Acquisitions Dividend yield (%) - 0.7 0.7 0.7 0.7
- Dividend - - - 48 48 Dividend payout (%) - 12.2 17.8 9.7 7.6
+ Equity raised - 136 35 - - Net debt/equity (x) 0.4 0.3 (0.1) (0.1) (0.1)
+ Debt raised 602 (114) (130) (70) (70) Receivables (days) 77 59 67 67 67
- Fin Investments (136) (130) 248 200 200 Inventory (days) 49 40 42 42 42
- Misc. Items (CFI + CFF) 248 247 (196) 24 6 Payables (days) 44 33 43 43 43
Net cash-flow (44) (7) (36) (279) (157) CFO:PAT% (97) 131 232 83 82
Source: Company, Systematix Institutional Research Source: Company, Systematix Institutional Research

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10 August 2023 Elin Electronics

Institutional Equities Team

Nikhil Khandelwal Managing Director +91-22-6704 8001 nikhil@systematixgroup.in
Equity Research
Analysts Industry Sectors Desk-Phone E-mail
Dhananjay Sinha Co Head of Equities & Head of Research - Strategy & Economics +91-22-6704 8095 dhananjaysinha@systematixgroup.in
Ashish Poddar Consumer Durables, EMS, Building Materials, Small-Mid Caps +91-22-6704 8039 ashishpoddar@systematixgroup.in
Himanshu Nayyar Consumer Staples & Discretionary +91-22-6704 8079 himanshunayyar@systematixgroup.in
Manjith Nair Banking, Insurance +91-22-6704 8065 manjithnair@systematixgroup.in
Pradeep Agrawal NBFCs & Diversified Financials +91-22-6704 8024 pradeepagrawal@systematixgroup.in
Pratik Tholiya Specialty & Agro Chem, Fertilisers, Sugar, Textiles and Select Midcaps +91-22-6704 8028 pratiktholiya@systematixgroup.in
Sameer Pardikar IT & ITES +91-22-6704 8041 sameerpardikar@systematixgroup.in
Sudeep Anand Oil & Gas, Logistics, Cement, Wagons +91-22-6704 8085 sudeepanand@systematixgroup.in
Vishal Manchanda Pharmaceuticals and Healthcare +91-22-6704 8064 vishalmanchanda@systematixgroup.in
Chetan Mahadik Consumer Staples & Discretionary +91-22-6704 8091 chetanmahadik@systematixgroup.in
Hena Vora NBFCs & Diversified Financials +91-22-6704 8045 henavora@systematixgroup.in
Pranay Shah Consumer Durables, EMS, Building Materials, Small-Mid Caps +91-22-6704 8017 pranayshah@systematixgroup.in
Pratik Oza Midcaps +91-22-6704 8036 pratikoza@systematixgroup.in
Pravin Mule NBFCs & Diversified Financials +91-22-6704 8034 pravinmule@systematixgroup.in
Prathmesh Kamath Oil & Gas, Logistics, Cement, Wagons +91-22-6704 8022 prathmeshkamath@systematixgroup.in
Purvi Mundhra Macro-Strategy +91-22-6704 8078 purvimundhra@systematixgroup.in
Rajesh Mudaliar Consumer Staples & Discretionary +91-22-6704 8084 rajeshmudaliar@systematixgroup.in
Shraddha Kapadia Consumer Durables, EMS, Building Materials, Small-Mid Caps +91-22-6704 8019 shraddhakapadia@systematixgroup.in
Shweta Dikshit Metals & Mining +91-22-6704 8042 shwetadikshit@systematixgroup.in
Vivek Mane Pharmaceuticals and Healthcare +91-22-6704 8046 vivekmane@systematixgroup.in
Yogeeta Rathod Midcaps +91-22-6704 8081 yogeetarathod@systematixgroup.in
Equity Sales & Trading
Name Desk-Phone E-mail
Vipul Sanghvi Co Head of Equities & Head of Sales +91-22-6704 8062 vipulsanghvi@systematixgroup.in
Jignesh Desai Sales +91-22-6704 8068 jigneshdesai@systematixgroup.in
Sidharth Agrawal Sales +91-22-6704 8090 sidharthagrawal@systematixgroup.in
Rahul Khandelwal Sales +91-22-6704 8033 rahul@systematixgroup.in
Chintan Shah Sales +91-22-6704 8061 chintanshah@systematixgroup.in
Pawan Sharma Director and Head - Sales Trading +91-22-6704 8067 pawansharma@systematixgroup.in
Mukesh Chaturvedi Vice President and Co Head - Sales Trading +91-22-6704 8074 mukeshchaturvedi@systematixgroup.in
Vinod Bhuwad Sales Trading +91-22-6704 8051 vinodbhuwad@systematixgroup.in
Rashmi Solanki Sales Trading +91-22-6704 8097 rashmisolanki@systematixgroup.in
Karan Damani Sales Trading +91-22-6704 8053 karandamani@systematixgroup.in
Vipul Chheda Dealer +91-22-6704 8087 vipulchheda@systematixgroup.in
Paras Shah Dealer +91-22-6704 8047 parasshah@systematixgroup.in
Rahul Singh Dealer +91-22-6704 8054 rahulsingh@systematixgroup.in
Corporate Access
Pearl Pillay Sr. Associate +91-22-6704 8088 pearlpillay@systematixgroup.in
Production
Madhu Narayanan Editor +91-22-6704 8071 madhunarayanan@systematixgroup.in
Mrunali Pagdhare Production +91-22-6704 8057 mrunalip@systematixgroup.in
Vijayendra Achrekar Production +91-22-6704 8089 vijayendraachrekar@systematixgroup.in
Operations
Sachin Malusare Vice President +91-22-6704 8055 sachinmalusare@systematixgroup.in
Jignesh Mistry Manager +91-22-6704 8049 jigneshmistry@systematixgroup.in
Sushant Chavan Manager +91-22-6704 8056 sushantchavan@systematixgroup.in

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10 August 2023 Elin Electronics

DISCLOSURES/APPENDIX

I. ANALYST CERTIFICATION
I, Ashish Poddar, Pranay Shah, Shraddha Kapadia; hereby certify that (1) views expressed in this research report accurately reflect my/our personal views about any or all of the subject
securities or issuers referred to in this research report, (2) no part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations or views
expressed in this research report by Systematix Shares and Stocks (India) Limited (SSSIL) or its group/associate companies, (3) reasonable care is taken to achieve and maintain
independence and objectivity in making any recommendations.

Disclosure of Interest Statement Update

Analyst holding in the stock No
Served as an officer, director or employee No

II. ISSUER SPECIFIC REGULATORY DISCLOSURES, unless specifically mentioned in point no. 9 below:

1. The research analyst(s), SSSIL, associates or relatives do not have any financial interest in the company(ies) covered in this report.

2. The research analyst(s), SSSIL, associates or relatives collectively do not hold more than 1% of the securities of the company(ies) covered in this report as of the end of the
month immediately preceding the distribution of the research report.

3. The research analyst(s), SSSIL, associates or relatives did not have any other material conflict of interest at the time of publication of this research report.
4. The research analyst, SSSIL and its associates have not received compensation for investment banking or merchant banking or brokerage services or any other products or
services from the company(ies) covered in this report in the past twelve months.
5. The research analyst, SSSIL or its associates have not managed or co-managed a private or public offering of securities for the company(ies) covered in this report in the previous
twelve months.
6. SSSIL or its associates have not received compensation or other benefits from the company(ies) covered in this report or from any third party in connection with this research
report.

7. The research analyst has not served as an officer, director or employee of the company(ies) covered in this research report.

8. The research analyst and SSSIL have not been engaged in market making activity for the company(ies) covered in this research report.

9. Details of SSSIL, research analyst and its associates pertaining to the companies covered in this research report:

Sr. Yes /
Particulars
No. No.
1 Whether compensation was received from the company(ies) covered in the research report in the past 12 months for investment banking transaction by SSSIL. No
2 Whether research analyst, SSSIL or its associates and relatives collectively hold more than 1% of the company(ies) covered in the research report. No
3 Whether compensation has been received by SSSIL or its associates from the company(ies) covered in the research report. No
Whether SSSIL or its affiliates have managed or co-managed a private or public offering of securities for the company(ies) covered in the research report in the
4 No
previous twelve months.
Whether research analyst, SSSIL or associates have received compensation for investment banking or merchant banking or brokerage services or any other
5 No
products or services from the company(ies) covered in the research report in the last twelve months.

10. There is no material disciplinary action taken by any regulatory authority that impacts the equity research analysis activities.

STOCK RATINGS
BUY (B): The stock's total return is expected to exceed 15% over the next 12 months.
HOLD (H): The stock's total return is expected to be within -15% to +15% over the next 12 months.
SELL (S): The stock's total return is expected to give negative returns of more than 15% over the next 12 months.
NOT RATED (NR): The analyst has no recommendation on the stock under review.

INDUSTRY VIEWS
ATTRACTIVE (AT): Fundamentals/valuations of the sector are expected to be attractive over the next 12-18 months.
NEUTRAL (NL): Fundamentals/valuations of the sector are expected to neither improve nor deteriorate over the next 12-18 months.
CAUTIOUS (CS): Fundamentals/valuations of the sector are expected to deteriorate over the next 12-18 months.

III. DISCLAIMER
The information and opinions contained herein have been compiled or arrived at based on the information obtained in good faith from sources believed to be reliable. Such information
has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy completeness or correctness.

This document is for information purposes only. This report is based on information that we consider reliable; we do not represent that it is accurate or complete and one should exercise
due caution while acting on it. Description of any company(ies) or its/their securities mentioned herein are not complete and this document is not and should not be construed as an
offer or solicitation of an offer to buy or sell any securities or other financial instruments. Past performance is not a guide for future performance, future returns are not guaranteed and
a loss of original capital may occur. All opinions, projections and estimates constitute the judgment of the author as on the date of the report and these, plus any other information
contained in the report, are subject to change without notice. Prices and availability of financial instruments are also subject to change without notice. This report is intended for
distribution to institutional investors.
This report is not directed to or intended for display, downloading, printing, reproducing or for distribution to or use by, any person or entity that is a citizen or resident or located in any
locality, state, country or other jurisdiction where such distribution, publication, reproduction, availability or use would be contrary to law or regulation or what would subject to SSSIL or
its affiliates to any registration or licensing requirement within such jurisdiction. If this report is inadvertently sent or has reached any individual in such country, especially USA, the same
may be ignored and brought to the attention of the sender. Neither this document nor any copy of it may be taken or transmitted into the United States (to U.S. persons), Canada, or
Japan or distributed, directly or indirectly, in the United States or Canada or distributed or redistributed in Japan or to any resident thereof. Any unauthorized use, duplication,

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10 August 2023 Elin Electronics
redistribution or disclosure of this report including, but not limited to, redistribution by electronic mail, posting of the report on a website or page, and/or providing to a third party a link,
is prohibited by law and will result in prosecution. The information contained in the report is intended solely for the recipient and may not be further distributed by the recipient to any
third party.
SSSIL generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any
companies that the analysts cover. Additionally, SSSIL generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of
any companies that they cover. Our salespeople, traders, and other professionals or affiliates may provide oral or written market commentary or trading strategies to our clients that
reflect opinions that are contrary to the opinions expressed herein. Our proprietary trading and investing businesses may make investment decisions that are inconsistent with the
recommendations expressed herein. The views expressed in this research report reflect the personal views of the analyst(s) about the subject securities or issues and no part of the
compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The
compensation of the analyst who prepared this document is determined exclusively by SSSIL; however, compensation may relate to the revenues of the Systematix Group as a whole, of
which investment banking, sales and trading are a part. Research analysts and sales persons of SSSIL may provide important inputs to its affiliated company(ies).
Foreign currencies denominated securities, wherever mentioned, are subject to exchange rate fluctuations which could have an adverse effect on their value or price or the income
derived from them. In addition, investors in securities such as ADRs, the values of which are influenced by foreign currencies, effectively assume currency risk. SSSIL, its directors, analysts
or employees do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments made or any action taken on the basis of this report
including but not restricted to fluctuation in the prices of shares and bonds, changes in the currency rates, diminution in the NAVs, reduction in the dividend or income, etc.

SSSIL and its affiliates, officers, directors, and employees subject to the information given in the disclosures may: (a) from time to time, have long or short positions in, and buy or sell, the
securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation (financial interest)
or act as a market maker in the financial instruments of the company (ies) discussed herein or act as advisor or lender / borrower to such company (ies) or have other potential material
conflict of interest with respect to any recommendation and related information and opinions. The views expressed are those of the analyst and the company may or may not subscribe
to the views expressed therein.
SSSIL, its affiliates and any third party involved in, or related to, computing or compiling the information hereby expressly disclaim all warranties of originality, accuracy, completeness,
merchantability or fitness for a particular purpose with respect to any of this information. Without limiting any of the foregoing, in no event shall SSSIL, any of its affiliates or any third
party involved in, or related to, computing or compiling the information have any liability for any damages of any kind. The company accepts no liability whatsoever for the actions of
third parties. The report may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the report refers to website material of the company, the
company has not reviewed the linked site. Accessing such website or following such link through the report or the website of the company shall be at your own risk and the company
shall have no liability arising out of, or in connection with, any such referenced website.
SSSIL will not be liable for any delay or any other interruption which may occur in presenting the data due to any technical glitch to present the data. In no event shall SSSIL be liable for
any damages, including without limitation, direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the data presented by SSSIL
through this presentation.

SSSIL or any of its other group companies or associates will not be responsible for any decisions taken on the basis of this report. Investors are advised to consult their investment
and tax consultants before taking any investment decisions based on this report.

Systematix Shares and Stocks (India) Limited:

Registered and Corporate address: The Capital, A-wing, No. 603 – 606, 6th Floor, Plot No. C-70, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051
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