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India I Equities
Daily
5 December 2014
Sensex: 28563
Nifty: 8564
10
9
8
7
Sensex
Nifty
Dow Jones
S & P 500
FTSE
Nikkei*
Hang Seng*
4 Dec14
1 Day
YTD
28563
8564
17900
2072
6679
17830
24058
0.4%
0.3%
-0.1%
-0.1%
-0.6%
-0.3%
1.0%
34.9%
35.9%
8.0%
12.1%
-1.0%
9.4%
3.2%
4 Dec 14
1 Day
Avg '14
649
2,964
22,310
2.1%
-5.4%
-30.0%
527
2,644
32,107
4 Dec 14*
MTD
YTD
653
576
77
753
689
151
136,724
121,892
16,430
2,684
2,734
-50
27,552
27,651
-99
823,596
812,799
10,104
200
294
-95
512
407
105
28,192
25,716
2,241
Volumes (US$m)
Cash BSE
Cash NSE
Derivatives (NSE)
Flows (US$m)
FII Cash
Buy
Sell
Net
FII - Derivatives
Buy
Sell
Net
DII Cash
Buy
Sell
Net
Others
5
4
3
WPI
Source: GoI
Non-core
Core
Oct-14
Oct-13
Oct-12
Oct-11
Oct-10
Oct-09
Oct-08
Oct-07
Oct-06
Oct-05
Oct-04
Oct-03
Oct-02
Oct-01
Oct-00
Oct-99
2
Oct-98
11
Markets
4 Dec 14
1 Day
YTD
69.3
1,203.7
572.5
61.9
1.2
119.9
7.4%
8.0%
352.2
-0.4%
-0.1%
-3.8%
0.0%
0.0%
-0.1%
-60.bps
0.bps
-1.9bps
-34.5%
-0.2%
-2.1%
-0.2%
11.0%
-12.2%
-135.bps
-85.7bps
17.9bps
Anand Rathi Shares and Stock Brokers Limited (hereinafter ARSSBL) is a full service brokerage and equities research firm and the views expressed therein are solely
of ARSSBL and not of the companies which have been covered in the Research Report. This report is intended for the sole use of the Recipient and is to be circulated
only within India and to no countries outside India. Disclosures and analyst certifications are present in Appendix.
Anand Rathi Research
India Equities
5 December 2014
Market Data
Large Caps
Mid Caps
Small Caps
(>US$1bn)
(US$250m-1bn)
(US$100m-250m)
Price Performance
Top-5 gainers
Company
Price Performance
CMP (INR)
1 wk (%)
1 Mth (%)
BERGER PAINTS
424
19.5
6.6
WOCKHARDT LTD
936
15.6
174
14.7
1 wk (%)
1 Mth (%)
378
54.4
62.7
SPICEJET LTD
23.5
505
34.1
52.7
TAKE SOLUTIONS
56
39.1
37.1
10.7
STRIDES ARCOLAB
911
23.8
36.7
SEQUENT SCIENTIF
536
27.5
19.0
556
26.6
38.7
70
26.0
78.0
1 Mth (%)
1096
13.6
17.7
ORIENTAL BANK OF
310
13.4
8.6
CMP (INR)
1 wk (%)
1 Mth (%)
681
(14.9)
(15.7)
1325
(8.6)
(2.0)
VEDANTA RESOURCE
CONTAINER CORP
GMR INFRASTRUCTU
Price Performance
Top-5 gainers
Company
CMP (INR)
Top-5 losers
Company
Top-5 gainers
Company
353
16.0
24.2
ZYDUS WELLNESS
801
14.8
27.7
ONMOBILE GLOBAL
CMP (INR)
1 wk (%)
1 Mth (%)
SUZLON ENERGY
13
(9.6)
(2.2)
ABAN OFFSHORE
543
(8.4)
(13.0)
Top-5 losers
Company
Top-5 losers
Company
CMP (INR)
1 wk (%)
21
39.6
1 Mth (%)
50.0
CMP (INR)
1 wk (%)
12
(22.3)
(56.4)
33
(11.8)
(30.2)
18
(8.5)
(15.0)
KAVERI SEED
844
(7.5)
(8.5)
RS SOFTWARE INDI
542
(10.4)
(15.9)
361
(6.7)
(11.0)
JK CEMENTS LTD
606
(6.7)
0.3
GUJARAT NATURAL
182
(8.7)
(10.9)
NATIONAL ALUMIN
58
(6.6)
1.0
85
(5.7)
(25.5)
15
(8.4)
0.7
FUTURE RETAIL LT
GAMMON INFRASTRU
Volume
Volume
Volume
Volume spurts
Company
Volume spurts
Company
Volume spurts
Company
CMP (INR)
1 wk avg
1/4 wk (%)
CMP (INR)
1 wk avg
1/4 wk (%)
CMP (INR)
1 wk avg
1/4 wk (%)
GUJARAT GAS CO
594
1,280,553
191.4
MOTILAL OSWAL
259
271,523
171.4
ICVL CHEMICALS L
195
1,518
282.9
OBEROI REALTY
258
1,115,807
171.7
505
547,895
150.6
TAKE SOLUTIONS
56
2,238,107
266.4
CROMPTON GREAVES
189
24,660,992
157.0
STRIDES ARCOLAB
911
1,177,743
141.8
TRIBHOVANDAS BHI
169
591,423
173.4
BERGER PAINTS
424
1,471,113
135.9
378
8,013,150
133.7
GOODYEAR INDIA
659
129,274
134.1
34,281
26,418
81.6
200
1,301,477
124.1
556
1,010,260
127.5
CMP (INR)
200D Avg
(%)
CMP (INR)
200D Avg
(%)
CMP (INR)
200D Avg
(%)
800
429
85.3
BOMBAY BURMAH TR
457
182
151.2
ICVL CHEMICALS L
195
53
263.3
641
2,403
359
1,465
78.8 #
64.4 #
CENTURY PLYBOARD
JK TYRE & IND LT
163
639
80
319
104.3
99.5
EXDON TRADING CO
VISAGAR POLYTEX
308
805
85
234
259.4
253.3
EICHER MOTORS
14,359
8,901
61.1 #
GATI LTD
269
138
95.7
KAMALAKSHI FINAN
439
126
245.7
ASHOK LEYLAND
55
34
60.8
KITEX GARMENTS
523.7
285.6
82.3
71
25
171.0
CMP (INR)
200D Avg
(%)
12
33
(63.4)
MRF LTD
Technicals
Above 200 DMA
Company
Technicals
NATIONAL BUILDIN
WHIRLPOOL OF IND
AJANTA PHARMA
CMP (INR)
200D Avg
(%)
142
250
(42.7)
Technicals
CMP (INR)
200D Avg
(%)
13
19
(27.7)
JAIPRAKASH ASSOC
30
52
(42.2)
PIPAVAV DEFENCE
35
47
(25.1)
SKIL INFRASTRUCT
29
54
(47.6)
VEDANTA RESOURCE
681
972
(30.0)
FUTURE RETAIL LT
85
113
(24.5)
KAPPAC PHARMA
262
421
(38.2)
18
26
(27.3)
JAYPEE INFRATECH
21
27
(22.6)
352
539
(34.6)
260
326
(20.2)
JAIPRAKASH POWER
13
17
(21.2)
FINANCIAL TECHNO
188
270
(30.5)
GMR INFRASTRUCTU
CAIRN INDIA
Source: Bloomberg
India Equities
Consumer
India I Equities
Company Update
Change in Estimates Target Reco
5 December 2014
Nestl India
Rating: Buy
Target Price: `7,124
Share Price: `6,325
NEST IN / NEST.BO
`6624 / `4536
28047 / 8390
US$1.2m
`609bn / US$10bn
96m
EBITDA margin steady. Higher raw material prices resulted in the gross
margin dropping 110bps. However, slightly lower staff costs and other
expenditure helped the company report a 70-bp higher EBITDA margin. On
completion of major capex, depreciation was up just 1% yoy. Repayment of
debt resulted in a 98% drop in interest cost. Other income also dropped, 19%
yoy. The effective income-tax rate was down 70bps yoy. Net profit was up
16% yoy.
Promoters
- of which, Pledged
Free Float
- Foreign Institutions
- Domestic Institutions
- Public
62.8
37.2
14.3
4.8
18.1
Revenues
EBITDA
PAT
62.8
37.2
14.5
5.1
17.7
62.8
37.2
13.7
5.3
18.3
CY14e
CY15e
2.6
(3.4)
1.2
0.0
1.2
2.2
NEST
5,000
Dec-14
Oct-14
Aug-14
Jun-14
Apr-14
4,500
Feb-14
Dec-13
Focus on nutrition, health and wellness. In its recent management meet, the
company was confident of building brands and a portfolio on the nutrition,
health and wellness platform to deliver long-term profitable growth.
Distribution expansion would drive volume growth and improve its marketing
drives. While innovation and renovation would create sub-categories, we
believe the margin would improve because of falling raw-material and crude-oil
prices and internal cost efficiencies.
Source: Bloomberg
Key financials (YE Dec)
CY12
CY13
CY14e
CY15e
CY16e
Sales (` m)
83,023
90,619
102,460
116,038
131,634
Net profit (` m)
11,006
11,340
13,364
15,584
18,158
114.2
117.6
138.6
161.6
188.3
9.6
3.0
17.8
16.6
16.5
PE (x)
55.4
53.8
45.6
39.1
33.6
PBV (x)
31.1
23.6
18.5
14.6
11.5
RoE (%)
67.2
49.9
45.4
41.7
38.3
RoCE (%)
49.0
35.7
35.9
39.0
40.8
0.8
0.8
0.9
0.9
1.0
75.2
39.0
3.9
(21.6)
(41.8)
EPS (`)
Growth (%)
Anand Rathi Shares and Stock Brokers Limited (hereinafter ARSSBL) is a full service brokerage and equities research firm and the views expressed therein are solely of
ARSSBL and not of the companies which have been covered in the Research Report. This report is intended for the sole use of the Recipient and is to be circulated only within
India and to no countries outside India. Disclosures and analyst certifications are present in Appendix.
Anand Rathi Research
India Equities
5 December 2014
Net sales
Sales growth (%)
- Oper. expenses
EBIDTA
EBITDA margins (%)
- Interest
- Depreciation
+ Other income
- Tax
Income tax rate
PAT
Extraordinary items
Minority Interest
Adjusted PAT
FDEPS (`/sh)
FDEPS Growth
CY12
CY13
CY14e
CY15e
CY16e
83,023
10.8
64,765
18,258
22.0
266
2,772
633
4,847
30.6
11,006
(327)
10,679
114.2
9.6
90,619
9.1
71,228
19,391
21.4
365
3,300
1,222
5,609
33.1
11,340
(169)
11,171
117.6
3.0
102,460
13.1
80,311
22,149
21.6
429
3,900
2,126
6,582
33.0
13,364
13,364
138.6
17.8
116,038
13.3
90,687
25,352
21.8
334
4,255
2,497
7,676
33.0
15,584
15,584
161.6
16.6
131,634
13.4
102,859
28,775
21.9
239
4,517
3,082
8,943
33.0
18,158
18,158
188.3
16.5
CY12
CY13
CY14e
964
17,020
17,984
20,752
1,621
40,357
35,484
4,903
4,903
(2,399)
2,370
40,357
15,101
(2.9)
203.3
964
22,723
23,688
23,829
2,155
49,671
36,640
9,755
9,755
(4,218)
7,494
49,671
8,735
(4.7)
268.0
964
29,883
30,847
19,079
2,155
52,080
35,740
15,755
15,755
(4,943)
5,529
52,080
(50)
(4.8)
342.3
CY15e
CY16e
964
964
38,699 49,975
39,663 50,939
14,329
9,579
2,155
2,155
56,146 62,673
34,985 33,968
20,755 25,755
20,755 25,755
(5,694) (6,564)
6,101
9,514
56,146 62,673
(10,372) (23,536)
(4.9)
(5.0)
433.7
550.7
Share capital
Reserves & surplus
Shareholders fund
Minority interest
Debt
Def Tax Liability
Capital employed
Fixed assets
Investments
of which, Liquid
Working capital
Cash
Capital deployed
Net Debt
W C turn (%)
Book Value (`/sh)
Year-end: Dec
Year-end: Dec
CY12
CY13
CY14e
CY15e
CY16e
11,006
2,772
13,778
2,635
16,937
(9,744)
7,194
(5,426)
594
32
2,394
3,513
5,907
11,340
3,300
14,640
2,815
17,949
(3,279)
14,669
(5,462)
759
(2,214)
7,753
5,907
13,661
13,364
3,900
17,264
725
17,990
(3,000)
14,990
(6,204)
(4,750)
(6,000)
(1,965)
7,494
5,529
15,584
4,255
19,839
751
20,590
(3,500)
17,090
(6,768)
(4,750)
(5,000)
572
5,529
6,101
18,158
4,517
22,675
870
23,545
(3,500)
20,045
(6,881)
(4,750)
(5,000)
3,414
6,101
9,514
Year-end: Dec
CY12
CY13
CY14e
CY15e
CY16e
P/E (x)
P/B (x)
EV/Sales (x)
EV/EBITDA (x)
RoAE (%)
RoACE (%)
Dividend yield (%)
Dividend payout (%)
RM to sales (%)
Ad spend to sales (%)
EBITDA growth (%)
EPS growth (%)
PAT margin (%)
FCF/EPS
OCF/Sales
55.4
31.1
7.5
34.0
67.2
49.0
0.8
42.5
45.5
4.3
17.6
9.6
13.3
65.4
20.4
53.8
23.6
6.8
32.0
49.9
35.7
0.8
41.2
45.5
4.4
6.2
3.0
12.5
129.4
19.8
45.6
18.5
6.1
28.0
45.4
35.9
0.9
39.7
45.2
4.4
14.2
17.8
13.0
112.2
17.6
39.1
14.6
5.3
24.5
41.7
39.0
0.9
37.1
45.0
4.4
14.5
16.6
13.4
109.7
17.7
33.6
11.5
4.7
21.5
38.3
40.8
1.0
32.4
44.9
4.4
13.5
16.5
13.8
110.4
17.9
Fig 5 PE band
(`)
7,000
Beverages
14%
6,000
36x
5,000
30x
4,000
24x
3,000
Chocolate &
confectionery
14%
18x
2,000
12x
Nestle
1,000
Prepared dishes
& Cooking aids
28%
Nov-14
Nov-13
Nov-12
Nov-11
Nov-10
Nov-09
Nov-08
Nov-07
Nov-06
Nov-05
Nov-04
Nov-03
Nov-02
Nov-01
Nov-00
Source: Company
5 December 2014
Result Highlights
Fig 7 Estimates vs Actuals
(` m)
3QCY14e
3QCY14
Change (%)
Net Sales
26,301
25,578
(2.7)
EBITDA
5,276
5,419
2.7
20.1
21.2
3,197
3,275
12.2
12.8
2.4
Source: Company
(%)
25
30,000
25,000
20
20,000
15
15,000
10
10,000
5
5,000
0
Revenues
Sept 14
Jun 14
Mar 14
Dec 13
Jun 13
Sept 13
Mar 13
Dec 12
Sept 12
Jun 12
Mar 12
Dec 11
Sept 11
June 11
Growth (RHS)
20
15
10
Sept 14
Jun 14
Mar 14
Dec 13
Sept 13
Jun 13
Mar 13
Dec 12
Sept 12
Jun 12
Mar 12
Dec 11
Sept 11
June 11
5 December 2014
18
12
Sept 14
Jun 14
Mar 14
Dec 13
Sept 13
Jun 13
Mar 13
Dec 12
Sept 12
Jun 12
Mar 12
Dec 11
Sept 11
June 11
-6
Domestic
Sept 14
Jun 14
Mar 14
Dec 13
Sept 13
Jun 13
Mar 13
Dec 12
Sept 12
Jun 12
Mar 12
Dec 11
Sept 11
June 11
-10
Exports
5 December 2014
6,000
BSE FMCG
5,000
Nestle
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Feb-14
Jan-14
Dec-13
Nov-13
4,000
Valuation
We have upgraded our recommendation on the stockfrom a Hold to a
Buy, with a revised target price of `7,300 (earlier `5,193). Our target price is
based on the target PE of 34x CY16e earnings (the mean PE of the past 14
years). We believe that, with better growth rates and return ratios, Nestl
India will prove ripe for a re-rating.
Fig 13 Mean PE and Standard deviation
70
60
+2SD
50
+1SD
40
Mean
30
20
-1SD
10
-2SD
Nov-14
Nov-13
Nov-12
Nov-11
Nov-10
Nov-09
Nov-08
Nov-07
Nov-06
Nov-05
Nov-04
Nov-03
Nov-02
Nov-01
Nov-00
Risks
Appendix
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.
Important Disclosures on subject companies
Rating and Target Price History (as of 4 December 2014)
7,300
Nestle
6,400
13
5,500
14
1012
9
4,600
15
11
3,700
4
2,800
2
1,900
6
5
8
7
Jul-14
Nov-14
Mar-14
Jul-13
Nov-13
Mar-13
Jul-12
Nov-12
Mar-12
Nov-11
Apr-11
Aug-11
Dec-10
Apr-10
Aug-10
Aug-09
Dec-09
Apr-09
Aug-08
Dec-08
Apr-08
Jan-08
1,000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Date
Rating
12-Dec-08 Hold
6-May-09
Sell
4-Mar-10
Sell
1-Apr-10
Sell
23-Apr-10
Sell
2-Nov-10
Sell
24-Feb-11
Buy
27-Jun-11
Buy
8-Nov-11
Buy
4-Jan-13
Buy
9-Apr-13
Buy
10-May-13
Buy
31-Oct-13
Hold
17-Feb-14 Hold
2-Apr-14
Hold
TP
(`)
1,495
1,520
2,003
2,075
2,416
2,905
4,096
4,550
5,100
5,634
5,106
5,582
5,750
5,380
5,193
Share
Price (`)
1,360
1,758
2,631
2,712
2,865
3,536
3,443
3,934
4,418
4,942
4,471
4,870
5,595
5,075
4,860
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, firm revenues and overall investment banking
revenues.
Anand Rathi Ratings Definitions
Analysts ratings and the corresponding expected returns take into account our definitions of Large Caps (>US$1bn) and Mid/Small Caps (<US$1bn) as described
in the Ratings Table below:
Ratings Guide
Large Caps (>US$1bn)
Mid/Small Caps (<US$1bn)
Buy
>15%
>25%
Hold
5-15%
5-25%
Sell
<5%
<5%
Hold
27%
0%
Sell
13%
0%
Other Disclosures
This report has been issued by ARSSBL which is a SEBI regulated entity, and which is in full compliance with all rules and regulations as are applicable to its
functioning and governance. The investors should note that ARSSBL is one of the companies comprising within ANAND RATHI group, and ANAND RATHI as a
group consists of various companies which may include (but is not limited to) its subsidiaries, its affiliates, its group companies who may hold positions, views,
stakes and may service the companies covered in this report independent of ARSSBL. Investors are cautioned to be aware that there could arise a potential
conflict of interest in the views held by ARSSBL and other companies of Anand Rathi who maybe affiliated, connected or catering to the companies mentioned in
the Research Report; even though, ARSSBL and Anand Rathi are fully complaint with all procedural and operational regulatory requirements. Thus, investors
should not use this as a sole basis for making their investment decision and should consider the recommendations mentioned in the Research Report bearing in
mind the aforementioned.
Further, the information herein has been obtained from various sources which we believe is reliable, and we do not guarantee its accuracy or completeness.
Neither the information nor any opinion expressed herein constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures
or other derivatives related to such securities (hereinafter referred to as Related Investments). ARSSBL and/or Anand Rathi may trade for their own accounts as
market maker / jobber and/or arbitrageur in any securities of the companies mentioned in the Research Report or in related investments, and may be on taking a
different position from the ones which haven been taken by the public orders. ARSSBL and/or Anand Rathi and its affiliates, directors, officers, and employees may
have a long or short position in any securities of the companies mentioned in the Research Report or in Related Investments. ARSSBL and/or Anand Rathi, may
from time to time, perform investment banking, investment management, financial advisory or any other services not explicitly mentioned herein, or solicit
investment banking or other business from, any entity and/or company mentioned in this Research Report; however, the same shall have no bearing whatsoever
on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the other
companies of Anand Rathi, even though there might exist an inherent conflict of interest.
Furthermore, this Research Report is prepared for private circulation and use only. It does not have regard to the specific investment objectives, financial situation
and the specific financial needs or objectives of any specific person who may receive this Research Report. Investors should seek financial advice regarding the
appropriateness of investing in any securities or investment strategies discussed or recommended in this Research Report, and, should understand that
statements regarding future prospects may or may not be realized, and we can not guarantee the same as analysis and valuation is a tool to enable investors to
make investment decisions but, is not an exact and/or a precise science. Investors should note that income from such securities, if any, may fluctuate and that
each security's price or value may rise or fall. Past performance is not necessarily a guide to future performance. Foreign currency rates of exchange may
adversely affect the value, price or income of any security or related investments mentioned in this report.
Technology
India I Equities
Company Update
5 December 2014
Rating: Buy
Target Price: `980
Share Price: `668
HGSL IN / HGSL.BO
`736 / `429
28047 / 8390
US$0.5m
`14bn / US$.23bn
20.6m
Sep 14
Jun 14
Mar14
Promoters
- of which, Pledged
Free Float
- Foreign Institutions
- Domestic Institutions
- Public
67.91
32.09
16.65
0.61
14.83
68.02
31.98
16.14
0.01
15.83
68.05
31.95
15.69
0.01
16.25
HGSL
650
600
Sensex
550
500
450
Dec-14
Oct-14
Nov-14
Sep-14
Jul-14
Aug-14
Jun-14
Apr-14
May-14
Mar-14
Jan-14
Feb-14
400
Dec-13
Source: Bloomberg
Key financials (YE Mar)
Sales (US$m)
Sales (`m)
FY13
FY14
FY15e
FY16e
366
412
465
528
FY17e
600
19,834
25,048
27,939
31,646
35,967
906
1,695
1,552
1,831
2,151
EPS (`)
44
82
75
89
104
Growth (%)
-15
87
-8
18
17
PE (x)
17.2
9.2
10.0
8.5
7.2
PBV (x)
1.3
1.1
1.0
0.9
0.8
RoE (%)
13
10
11
12
10
Anand Rathi Shares and Stock Brokers Limited (hereinafter ARSSBL) is a full service brokerage and equities research firm and the views expressed therein are solely of
ARSSBL and not of the companies which have been covered in the Research Report. This report is intended for the sole use of the Recipient and is to be circulated only within
India and to no countries outside India. Disclosures and analyst certifications are present in Appendix.
Anand Rathi Research
India Equities
5 December 2014
Hinduja Global Solutions SMAC helping BPM companies climb the value chain; Buy
Revenues (US$ m)
growth (%)
Revenues (`m)
growth (%)
Effective USD:INR
Cost of Revenues
SG&A
EBITDA
EBITDA margins (%)
D&A
EBIT
EBIT margins (%)
Other income
Tax
ETR (%)
Minority Interest
Net Profit
Net margins (%)
EPS (`)
EPS growth (%)
FY13
FY14
FY15e
FY16e
FY17e
366
12
19,834
28
54.1
(13,412)
(4,185)
2,237
11.3
(772)
1,465
7.4
333
(402)
-30
(53)
906
4.6
44
-15
412
12
25,048
26
60.8
(16,921)
(4,908)
3,219
12.9
(862)
2,357
9.4
340
(614)
-27
0
1,695
6.8
82
87
465
13
27,939
12
60.1
(18,934)
(5,655)
3,351
12.0
(1,029)
2,322
8.3
243
(595)
-28
0
1,552
5.6
75
-8
528
14
31,646
13
59.9
(21,412)
(6,192)
4,042
12.8
(1,219)
2,823
8.9
179
(765)
-29
0
1,831
5.8
89
18
600
14
35,967
14
59.9
(24,646)
(6,701)
4,620
12.8
(1,401)
3,219
8.9
152
(898)
-29
0
2,151
6.0
104
17
FY14
FY15e
FY16e
FY17e
1,534
2,359
(857)
280
(351)
1,431
2,483
3,611
(1,293)
620
(587)
2,351
2,341
3,370
(603)
(243)
211
89
(746)
2,078
2,823
4,042
(777)
(308)
190
94
(931)
2,310
3,219
4,620
(907)
(358)
236
98
(1,081)
2,608
(587)
(834)
1,518
931
(1,537)
(446)
(1,345)
(1,200)
224
(976)
(1,300)
179
(1,121)
(1,300)
152
(1,148)
(1,764)
(480)
(438)
(2,682)
9
877
(638)
(388)
(136)
(757)
(485)
(417)
(1,659)
(757)
(490)
(406)
(1,653)
(757)
(494)
(321)
(1,573)
Employees (EoP)
Rev/Employee (US$)
EBITDA/Employee (`)
FY15e
FY16e
FY17e
21,486
206
15,382
15,588
0
5,537
361
21,486
3,948
7,126
1,663
12,172
5,295
658
3,994
2,226
3,421
1,549
0
1,872
22,071
206
16,723
16,929
0
4,780
361
22,071
4,028
7,126
1,828
12,793
6,072
671
3,529
2,521
3,705
1,739
0
1,965
22,970
206
18,380
18,586
0
4,023
361
22,970
3,928
7,126
2,012
13,945
6,979
684
3,417
2,865
4,039
1,975
0
2,064
Year-end: Mar
Return Ratios
RoCE % (post-tax)
RoIC % (post-tax)
RoE %
Cash Ratios
CFO:Sales
Receivable days (incl. unbill)
Payable days
DuPont Analysis
RoE %
Operating eff. (EBIT mgn %)
Invest eff. (PBT/EBIT %)
Tax Burden % (PAT/PBT)
Total Asset turnover
Leverage % (Assets/Equity)
Valuation ratios
P/E (x)
P/B (x)
EV/EBITDA (x)
EV / Operating CF (x)
FY13
FY14
FY15e
FY16e
FY17e
6
8
8
9
11
13
8
10
10
9
11
11
10
12
12
7
82
17
9
78
22
7
78
23
7
78
23
7
78
23
8
7
93
67
107
156
13
9
98
73
127
146
10
8
92
72
131
142
11
9
92
71
145
134
12
9
95
71
160
127
17.2
1.3
7.7
12.1
9.2
1.1
5.4
7.4
10.0
1.0
5.2
8.3
8.5
0.9
4.3
7.5
7.2
0.8
3.7
6.6
Fig 6 Assumptions
FY13
FY14
FY15e
FY16e
FY17e
FY14
21,176
206
14,314
14,521
0
6,294
361
21,176
3,777
7,126
1,511
11,884
4,692
645
4,551
1,995
3,121
1,338
0
1,783
FY13
18,128
206
12,149
12,355
0
5,508
266
18,128
2,997
6,458
1,255
9,952
3,600
872
4,062
1,418
2,535
815
0
1,720
Sources of Funds
Share capital
Reserves & Surplus
S/Hs Equity
Minority Interest
Total Debt
Other LT Liabilities
Application of Funds
Net Fixed Assets
Intangible/Goodwill
Other LT Assets
Current Assets
Accounts Receivable
Unbilled Revenues
Cash & Investments
Other CAs
Current Liabilities
Accounts Payable
Unearned revenue
Other CLs
Year-end: Mar
Year-end: Mar
Year-end: Mar
Chg in Realization
No. of seats
US$:`
FY13
FY14
FY15e
FY16e
FY17e
NA
23,036
54.1
0
26,385
60.8
1
28,436
60.1
2
34,246
59.9
4
33,183
59.9
5 December 2014
Hinduja Global Solutions SMAC helping BPM companies climb the value chain; Buy
Factsheet
Fig 7 Revenue by delivery location
(%)
2QFY14
3QFY14
4QFY14
1QFY15
North America
28
29
25
27
27
Canada
23
23
23
19
18
Continental Europe
2QFY15
11
11
10
India
25
25
25
26
28
Philippines
15
15
17
17
17
2QFY14
3QFY14
4QFY14
1QFY15
Telecoms
34
32
31
29
29
Hi-Tech/PES(cons. elec)
17
16
15
15
13
30
30
32
35
36
Others
BFSI
2QFY15
Top-client
Top-5 clients
Top-10 clients
Top-20 clients
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
13
45
62
81
13
47
63
80
14
47
62
78
14
49
63
77
15
49
62
76
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
60
23
9
8
59
23
9
8
58
22
11
9
62
19
11
8
63
18
11
8
2QFY15
North America
Canada
Continental Europe
India
Source: Company, Anand Rathi Research
3QFY14
4QFY14
1QFY15
North America
10
10
10
10
Canada
12
11
12
10
Continental Europe
India
Philippines
Total
60
59
58
59
60
15
17
17
18
19
24,669
25,676
26,036
26,803
28,120
3QFY14
4QFY14
1QFY15
2QFY15
Active Clients
133
135
139
141
143
0.8
0.8
0.8
0.8
0.8
Appendix
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.
Important Disclosures on subject companies
Rating and Target Price History (as of 4 December 2014)
HGSL
700
Date
28-Oct-14
Rating
Buy
TP
(`)
980
Share
Price (`)
651
650
1
600
550
500
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Feb-14
Jan-14
450
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, firm revenues and overall investment banking
revenues.
Anand Rathi Ratings Definitions
Analysts ratings and the corresponding expected returns take into account our definitions of Large Caps (>US$1bn) and Mid/Small Caps (<US$1bn) as described
in the Ratings Table below:
Ratings Guide
Large Caps (>US$1bn)
Mid/Small Caps (<US$1bn)
Buy
>15%
>25%
Hold
5-15%
5-25%
Sell
<5%
<5%
Hold
27%
0%
Sell
13%
0%
Other Disclosures
This report has been issued by ARSSBL which is a SEBI regulated entity, and which is in full compliance with all rules and regulations as are applicable to its
functioning and governance. The investors should note that ARSSBL is one of the companies comprising within ANAND RATHI group, and ANAND RATHI as a
group consists of various companies which may include (but is not limited to) its subsidiaries, its affiliates, its group companies who may hold positions, views,
stakes and may service the companies covered in this report independent of ARSSBL. Investors are cautioned to be aware that there could arise a potential
conflict of interest in the views held by ARSSBL and other companies of Anand Rathi who maybe affiliated, connected or catering to the companies mentioned in
the Research Report; even though, ARSSBL and Anand Rathi are fully complaint with all procedural and operational regulatory requirements. Thus, investors
should not use this as a sole basis for making their investment decision and should consider the recommendations mentioned in the Research Report bearing in
mind the aforementioned.
Further, the information herein has been obtained from various sources which we believe is reliable, and we do not guarantee its accuracy or completeness.
Neither the information nor any opinion expressed herein constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures
or other derivatives related to such securities (hereinafter referred to as Related Investments). ARSSBL and/or Anand Rathi may trade for their own accounts as
market maker / jobber and/or arbitrageur in any securities of the companies mentioned in the Research Report or in related investments, and may be on taking a
different position from the ones which haven been taken by the public orders. ARSSBL and/or Anand Rathi and its affiliates, directors, officers, and employees may
have a long or short position in any securities of the companies mentioned in the Research Report or in Related Investments. ARSSBL and/or Anand Rathi, may
from time to time, perform investment banking, investment management, financial advisory or any other services not explicitly mentioned herein, or solicit
investment banking or other business from, any entity and/or company mentioned in this Research Report; however, the same shall have no bearing whatsoever
on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the other
companies of Anand Rathi, even though there might exist an inherent conflict of interest.
Furthermore, this Research Report is prepared for private circulation and use only. It does not have regard to the specific investment objectives, financial situation
and the specific financial needs or objectives of any specific person who may receive this Research Report. Investors should seek financial advice regarding the
appropriateness of investing in any securities or investment strategies discussed or recommended in this Research Report, and, should understand that
statements regarding future prospects may or may not be realized, and we can not guarantee the same as analysis and valuation is a tool to enable investors to
make investment decisions but, is not an exact and/or a precise science. Investors should note that income from such securities, if any, may fluctuate and that
each security's price or value may rise or fall. Past performance is not necessarily a guide to future performance. Foreign currency rates of exchange may
adversely affect the value, price or income of any security or related investments mentioned in this report.
BFSI
India I Equities
Visit note
5 December 2014
Rating: Non-rated
Target Price: n.a
Share Price: `73
FY10
FY11
FY12
FY13
FY14
396
601
571
856
943
341
444
495
555
585
EPS (`)
4.2
5.5
6.1
6.9
7.2
Growth (%)
17.6
30.3
11.4
12.2
5.4
PE (x)
17.3
13.3
11.9
10.6
10.1
PABV (x)
1.9
1.7
1.6
1.4
1.4
RoE (%)
11.5
13.7
13.8
13.9
13.7
RoA (%)
4.9
5.5
4.7
4.3
4.3
1.6
1.6
1.6
1.6
1.6
Sep 14
Jun 14
Mar 14
Promoters
- of which, Pledged
Free Float
- Foreign Institutions
- Domestic Institutions
- Public
66.3
33.7
0.5
0.5
32.7
66.9
33.1
0.5
0.3
32.3
66.8
33.1
0.2
0.3
32.6
TFCI
45
35
Bankex
25
Dec-14
Oct-14
Aug-14
15
Jun-14
`74 / `21
28563 / 8564
US$1.1m
`6bn / US$97m
80.7m
Apr-14
TFCI IN / TFCI.BO
Feb-14
Healthy credit appraisal in hotel finance drives stable asset quality. The
hotels sector has been recently under stress. However, led by the large
database at its disposal and its strong grasp of the mechanics of the hotels
sector, TFCI has developed a robust credit-appraisal system. As a result, the
NBFC has maintained sound asset quality, with GNPA at 0.2% (Mar14), and
a negligible restructuring book of about `0.3bn.
Key data
Dec-13
Source: Bloomberg
Anand Rathi Shares and Stock Brokers Limited (hereinafter ARSSBL) is a full service brokerage and equities research firm and the views expressed therein are solely of
ARSSBL and not of the companies which have been covered in the Research Report. This report is intended for the sole use of the Recipient and is to be circulated only within
India and to no countries outside India. Disclosures and analyst certifications are present in Appendix.
Anand Rathi Research
India Equities
7 December 2014
Year-end: Mar
FY10
FY11
FY12
FY13
FY14
396
15.2
147
544
14.0
83
461
17.4
0
461
120
341
17.6
4.2
1.2
601
51.7
213
814
49.7
126
688
49.3
688
244
444
30.3
5.5
1.2
571
(5.0)
199
771
(5.3)
140
631
(8.3)
631
136
495
11.4
6.1
1.2
856
49.8
83
939
21.8
154
784
24.3
60
724
169
555
12.2
6.9
1.2
943
10.1
122
1,065
13.4
178
887
13.0
46
841
256
585
5.4
7.2
1.2
FY10
FY11
FY12
FY13
FY14
Share capital
Reserves & surplus
Net worth
Borrowings
Current liab & prov
Total liabilities
807
2,262
3,069
3,894
322
7,286
807
2,594
3,401
4,808
677
8,891
807
2,966
3,773
7,586
590
11,959
807
3,393
4,200
8,094
1,626
13,920
807
3,558
4,365
8,621
439
13,425
Advances
Investments
Cash & bank bal
Fixed & other assets
Total assets
No. of shares (m)
Borrowing growth (%)
Loans growth (%)
5,856
752
324
354
7,285
80.7
8.4
27.7
7,938
530
86
337
8,891
80.7
23.5
35.6
10,383
988
281
307
11,959
80.7
57.8
30.8
11,634
1,808
108
370
13,920
80.7
6.7
12.0
11,729
1,349
237
110
13,425
80.7
6.5
0.8
NIM (%)
Other inc. / total inc. (%)
Cost-income (%)
Provision coverage (%)
Dividend payout (%)
Borrowings-loans (%)
Investment-deposit (%)
Gross NPA (%)
Net NPA (%)
BV (`)
Adj BV (`)
CAR (%)
RoE (%)
RoA (%)
Dividend yield (%)
FY11
FY12
FY13
FY14
6.2
27.1
15.2
100.0
28.4
66.5
n.a
2.6
38.0
38.0
58.2
11.5
4.9
1.6
8.0
26.2
15.5
100.0
21.8
60.6
n.a
0.4
42.1
42.1
50.7
13.7
5.5
1.6
5.7
25.9
18.1
100.0
19.6
73.1
n.a
0.5
46.7
46.7
40.5
13.8
4.7
1.6
6.8
8.8
16.5
100.0
17.4
69.5
n.a
0.1
52.0
52.0
37.2
13.9
4.3
1.6
7.1
11.5
16.7
100.0
16.6
73.4
n.a
0.2
54.1
54.1
39.9
13.7
4.3
1.6
FY10
Appendix
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.
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, firm revenues and overall investment banking revenues.
Anand Rathi Ratings Definitions
Analysts ratings and the corresponding expected returns take into account our definitions of Large Caps (>US$1bn) and Mid/Small Caps (<US$1bn) as described in the Ratings Table
below:
Ratings Guide
Large Caps (>US$1bn)
Mid/Small Caps (<US$1bn)
Buy
>15%
>25%
Hold
5-15%
5-25%
Sell
<5%
<5%
Hold
27%
0%
Sell
13%
0%
Other Disclosures
This report has been issued by ARSSBL which is a SEBI regulated entity, and which is in full compliance with all rules and regulations as are applicable to its functioning and governance.
The investors should note that ARSSBL is one of the companies comprising within ANAND RATHI group, and ANAND RATHI as a group consists of various companies which may
include (but is not limited to) its subsidiaries, its affiliates, its group companies who may hold positions, views, stakes and may service the companies covered in this report independent of
ARSSBL. Investors are cautioned to be aware that there could arise a potential conflict of interest in the views held by ARSSBL and other companies of Anand Rathi who maybe affiliated,
connected or catering to the companies mentioned in the Research Report; even though, ARSSBL and Anand Rathi are fully complaint with all procedural and operational regulatory
requirements. Thus, investors should not use this as a sole basis for making their investment decision and should consider the recommendations mentioned in the Research Report
bearing in mind the aforementioned.
Further, the information herein has been obtained from various sources which we believe is reliable, and we do not guarantee its accuracy or completeness. Neither the information nor
any opinion expressed herein constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities
(hereinafter referred to as Related Investments). ARSSBL and/or Anand Rathi may trade for their own accounts as market maker / jobber and/or arbitrageur in any securities of the
companies mentioned in the Research Report or in related investments, and may be on taking a different position from the ones which haven been taken by the public orders. ARSSBL
and/or Anand Rathi and its affiliates, directors, officers, and employees may have a long or short position in any securities of the companies mentioned in the Research Report or in
Related Investments. ARSSBL and/or Anand Rathi, may from time to time, perform investment banking, investment management, financial advisory or any other services not explicitly
mentioned herein, or solicit investment banking or other business from, any entity and/or company mentioned in this Research Report; however, the same shall have no bearing
whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the other companies of
Anand Rathi, even though there might exist an inherent conflict of interest.
Furthermore, this Research Report is prepared for private circulation and use only. It does not have regard to the specific investment objectives, financial situation and the specific
financial needs or objectives of any specific person who may receive this Research Report. Investors should seek financial advice regarding the appropriateness of investing in any
securities or investment strategies discussed or recommended in this Research Report, and, should understand that statements regarding future prospects may or may not be realized,
and we can not guarantee the same as analysis and valuation is a tool to enable investors to make investment decisions but, is not an exact and/or a precise science. Investors should
note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Past performance is not necessarily a guide to future performance.
Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investments mentioned in this report.
Other Disclosures pertaining to distribution of research in the United States of America
This material was produced by ARSSBL, solely for information purposes and for the use of the recipient. It is not to be reproduced under any circumstances and is not to be copied or
made available to any person other than the recipient. It is distributed in the United States of America by Enclave Capital LLC (19 West 44th Street, Suite 1700, New York, NY 10036) and
elsewhere in the world by ARSSBL or an authorized affiliate of ARSSBL (such entities and any other entity, directly or indirectly, controlled by ARSSBL, the Affiliates). This document
does not constitute an offer of, or an invitation by or on behalf of ARSSBL or its Affiliates or any other company to any person, to buy or sell any security. The information contained herein
has been obtained from published information and other sources, which ARSSBL or its Affiliates consider to be reliable. None of ARSSBL or its Affiliates accepts any liability or
responsibility whatsoever for the accuracy or completeness of any such information. All estimates, expressions of opinion and other subjective judgments contained herein are made as of
the date of this document. Emerging securities markets may be subject to risks significantly higher than more established markets. In particular, the political and economic environment,
company practices and market prices and volumes may be subject to significant variations. The ability to assess such risks may also be limited due to significantly lower information
quantity and quality. By accepting this document, you agree to be bound by all the foregoing provisions.
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.
Enclave Capital LLC is distributing this document in the United States of America. ARSSBL accepts responsibility for its contents. Any US customer wishing to effect transactions in any
securities referred to herein or options thereon should do so only by contacting a representative of Enclave Capital LLC.
2014 Anand Rathi Shares and Stock Brokers Limited. All rights reserved. This report or any portion thereof may not be reprinted, sold or redistributed without the prior written consent of
Anand Rathi Shares and Stock Brokers Limited.
Additional information on recommended securities/instruments is available on request.
Appendix
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.
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, firm revenues and overall investment banking revenues.
Anand Rathi Ratings Definitions
Analysts ratings and the corresponding expected returns take into account our definitions of Large Caps (>US$1bn) and Mid/Small Caps (<US$1bn) as described in the Ratings Table
below:
Ratings Guide
Large Caps (>US$1bn)
Mid/Small Caps (<US$1bn)
Buy
>15%
>25%
Hold
5-15%
5-25%
Sell
<5%
<5%
Hold
27%
0%
Sell
13%
0%
Other Disclosures
This report has been issued by ARSSBL which is a SEBI regulated entity, and which is in full compliance with all rules and regulations as are applicable to its functioning and governance.
The investors should note that ARSSBL is one of the companies comprising within ANAND RATHI group, and ANAND RATHI as a group consists of various companies which may
include (but is not limited to) its subsidiaries, its affiliates, its group companies who may hold positions, views, stakes and may service the companies covered in this report independent of
ARSSBL. Investors are cautioned to be aware that there could arise a potential conflict of interest in the views held by ARSSBL and other companies of Anand Rathi who maybe affiliated,
connected or catering to the companies mentioned in the Research Report; even though, ARSSBL and Anand Rathi are fully complaint with all procedural and operational regulatory
requirements. Thus, investors should not use this as a sole basis for making their investment decision and should consider the recommendations mentioned in the Research Report
bearing in mind the aforementioned.
Further, the information herein has been obtained from various sources which we believe is reliable, and we do not guarantee its accuracy or completeness. Neither the information nor
any opinion expressed herein constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities
(hereinafter referred to as Related Investments). ARSSBL and/or Anand Rathi may trade for their own accounts as market maker / jobber and/or arbitrageur in any securities of the
companies mentioned in the Research Report or in related investments, and may be on taking a different position from the ones which haven been taken by the public orders. ARSSBL
and/or Anand Rathi and its affiliates, directors, officers, and employees may have a long or short position in any securities of the companies mentioned in the Research Report or in
Related Investments. ARSSBL and/or Anand Rathi, may from time to time, perform investment banking, investment management, financial advisory or any other services not explicitly
mentioned herein, or solicit investment banking or other business from, any entity and/or company mentioned in this Research Report; however, the same shall have no bearing
whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the other companies of
Anand Rathi, even though there might exist an inherent conflict of interest.
Furthermore, this Research Report is prepared for private circulation and use only. It does not have regard to the specific investment objectives, financial situation and the specific
financial needs or objectives of any specific person who may receive this Research Report. Investors should seek financial advice regarding the appropriateness of investing in any
securities or investment strategies discussed or recommended in this Research Report, and, should understand that statements regarding future prospects may or may not be realized,
and we can not guarantee the same as analysis and valuation is a tool to enable investors to make investment decisions but, is not an exact and/or a precise science. Investors should
note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Past performance is not necessarily a guide to future performance.
Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investments mentioned in this report.
Other Disclosures pertaining to distribution of research in the United States of America
This material was produced by ARSSBL, solely for information purposes and for the use of the recipient. It is not to be reproduced under any circumstances and is not to be copied or
made available to any person other than the recipient. It is distributed in the United States of America by Enclave Capital LLC (19 West 44th Street, Suite 1700, New York, NY 10036) and
elsewhere in the world by ARSSBL or an authorized affiliate of ARSSBL (such entities and any other entity, directly or indirectly, controlled by ARSSBL, the Affiliates). This document
does not constitute an offer of, or an invitation by or on behalf of ARSSBL or its Affiliates or any other company to any person, to buy or sell any security. The information contained herein
has been obtained from published information and other sources, which ARSSBL or its Affiliates consider to be reliable. None of ARSSBL or its Affiliates accepts any liability or
responsibility whatsoever for the accuracy or completeness of any such information. All estimates, expressions of opinion and other subjective judgments contained herein are made as of
the date of this document. Emerging securities markets may be subject to risks significantly higher than more established markets. In particular, the political and economic environment,
company practices and market prices and volumes may be subject to significant variations. The ability to assess such risks may also be limited due to significantly lower information
quantity and quality. By accepting this document, you agree to be bound by all the foregoing provisions.
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.
Enclave Capital LLC is distributing this document in the United States of America. ARSSBL accepts responsibility for its contents. Any US customer wishing to effect transactions in any
securities referred to herein or options thereon should do so only by contacting a representative of Enclave Capital LLC.
2014 Anand Rathi Shares and Stock Brokers Limited. All rights reserved. This report or any portion thereof may not be reprinted, sold or redistributed without the prior written consent of
Anand Rathi Shares and Stock Brokers Limited.
Additional information on recommended securities/instruments is available on request.