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27 th October 2008 ANSec Amit Nalin Securities Pvt. Ltd. Dabur India Ltd. CMP: Rs.65 CMP: Rs.65 Target: Rs.110 Target: Rs.110 Rated: Buy Rated: Buy
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Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Oct 11, 2020

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Page 1: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

27th October 2008

ANSec

Amit Nalin Securities Pvt. Ltd.

Dabur India Ltd.

CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy

Page 2: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecEquity Data

BSE Code 500096

NSE Code DABUR

Bloomberg DABUR.IN

Reuters DABUR.BO

NSE (avg vol) 191243

CMP 65

Equity 86.50

BV (Mar’07) 6.11

Market Cap 5622.5

Free Float 29.26%

52 Week H/L 133.5/60.0

Sensex Beta 0.5 Sh a r e H o l d i n g Pa t t e r n

Public10%

Foreign11%

Institutions11%

Promoters71%

Non Promoter

1%

405060708090

100110

Oct '07 Jan'08 A pr'08 Jul'08 Oct '08

Dabur Sensex

Page 3: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecFMCG SectorThe FMCG sector is the fourth largest sector of the economy, and is expected to grow at an average CAGR of 8.5% from USD 11.6bn in 2003 to USD 33.4bn in 2015.

India is one of the largest emerging markets with a population of over 1 billion. Its is also one of the largest economies in terms of purchasing power with a very strong base of middle class.

While the FMCG industry’s size is accorded to the large population base, in terms of per capita consumption and FMCG’s penetration levels, the industry lags its emerging market peers, offering huge potential for growth as income levels increase, and demographics show a growing middle class and youth population with a shift towards urbanization.

Around 45 percent of the population in India is below 20 years of age and the young population is set to rise further. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent demand with more money and a new mindset.

Consumer Profile 1999 2001 2006Population 846 1012 1087

Population < 25 years of age 480 546 565

Urbanization 26 28 31

Page 4: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecHistoryDabur, a company with more than a 100 year History, began with a pharmacy in 1884. Under the vision and management of the Burman family it has grown to its current commanding status in the industry by making available a whole range of personal care products based on the traditional science of Ayurveda.After de-merging its pharma business in 2003, the company has successfully transformed itself from a traditional Ayurvedic pharma products into a FMCG major. It has a range of products based on Ayuvedic like Chyavanprash, Amla etc but have now also developed a market for modern products like packaged juices and foods.The company has retained the legacy and traditional values associated with the brand, while acquiring a contemporary image which identifies well with the current generation’s preference for wellness solutions in the natural and herbal space based on ayurvedic healing without side-effects. The company's product portfolios primarily include personal care, healthcare, home care, and food. The company also provides classical and over the counter products, such as ayurveda-based solutions and has recently diversified into organized retail, operating a chain of beauty, health, and wellness retail outlets under the brand name of ‘new U'.

Page 5: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecInvestment RationaleDabur has a robust model for developing its products overseas. It has established market share in Africa and Middle East while maintaining margins around 14%. The growth potential in newer markets is higher than India. Thus, the international division grew 40% relative to Dabur India which recorded 15.6% growth vis-à-vis the industry growth of 14.5%

Dabur has a disciplined policy of maintaining or increasing ROE and ROCE and this is visible in its dividend policy and capex development.

Dabur has concentrated on North Indian markets with only 6% of its total sales coming from South India. This is highly unusual for a national brand owner like Dabur. The company has initiated marketing efforts in the south which should contribute to overall growth. It aspires to see that south will contribute 10% of its revenue.

The retail venture is a limited effort relative to the size of Dabur’s balance sheet. The concern’s enveloping this endeavor and the resultant impact on market capitalization far exceeds the impact of the venture upon consolidation.

Amongst FMCG companies Dabur has successfully maintained market share while earning one of the highest EBITDA in the industry. Consistent 12%-15% growth with high ROE makes Dabur distinctive as an investment in these turbulent times.

Page 6: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecValuation:The stock currently trades at 15.2X for 2009 and 12.5x and 10.4x its 2010 and 2011 expected EPS of Rs.5.19 and Rs.6.26 respectively.

The company’s low beta of 0.48 offers a safer investment avenue in these turbulent markets.

On a DCF computation, the Fair Value given the current conditions gives us a value of Rs.110 per share. The stock should trade 20X forward in average market conditions.

We believe that bear markets allow long term investors to invest in high quality brands and franchise businesses at attractive valuations. At current levels or lower Dabur’s stock can easily yield a 15% compounded return over 3 years.

Page 7: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecStrategic Business Units

Dabur

CCDConsumer Care

Division

IBDInternational Business

Division

CHDConsumer Healthcare

DivisionRetail

Page 8: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecStrategic Business Units

Sales (Rs./crs.) Q1FY09 Q1FY08 Growth% FY08 FY07 Growth %

CCD 458 417 10 1830 1599 14

CHD 39 31 25 155 147 5

IBD 108 77 40 376 299 25

Retail 1 0 - 0 0 -

Miscellaneous 6 5 20 36 35 2

Total 612 530 15 2398 2081 15

Page 9: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecConsumer Care DivisionThe consumer care division consist of a portfolio of 4 products categories:

Health Care: Share of 45% of CCD revenues. It comprises of Health supplements, oral care, digestives and confectionery.

Personal Care: Contributes to 35% of CCD sales and comprises of hair care, skin care and baby care.

Home Care: This segment became a part of the portfolio after the acquisition of Balsara and has a 6% share in CCD sales.

Foods: This segment contributes about 14% to CCD revenues. Its main products are juices and culinary additives.

Rs./crs. Q1FY09 Q1FY08Growth

% FY08 FY07Growth

%

Consumer Care Division

Health Supplements 63 53 19.1 349 300 16.3

Digestives & Confectionery 36 37 -2.4 144 130 10.8

Oral Care 87 82 5.5 361 314 15.0

Hair Care 151 131 14.8 522 455 14.7

Baby Oils and Skin Care 26 27 -5.3 104 100 4.0

Home Care 25 25 0.8 108 97 11.3

Foods 71 62 14.5 241 202 19.3

Total 458 417 9.8 1830 1599 14.4

Page 10: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecHealth CareOral Care

Dabur’s toothpaste portfolio grew by 27% with Meswak, Red and Babool growing by 40%, 23%, 30% respectively.

Health Supplements

Within this portfolio Glucose sales grew by 32% against the overall category growth of 9% and sales now exceed Rs.50crs.

Chyawanprash grew by 6% while the Chyawanprash market was petty much stagnant and as a result managed to cement its place as the leader with its 61% market share.

Dabur is also the leading player in Honey with sales exceeding Rs.100crs. and demonstrating growth of 26%.

Oral Care Market

13%

50%

21%

2%14%

Dabur Colgate HUL Anchor Others

Chyawanprash Market

61%12%

8%

9%10%

Dabur Baidyanath Zandu Emami Others

M k t S iz e D a b u r M k t S h a re2 8 0 0 c rs . 3 6 0 c rs . 1 3 %

M k t S iz e D a b u r M k t S h a r e6 0 0 c rs . 3 4 9 c r s . 5 8 %

Page 11: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecDigestives Market

32%

19%14%

13%

22%

Dabur Knoll Glaxo Pfizer Others

Digestives and Confectionery

The Digestive market in India is worth Rs.500crs. Dabur with sales of Rs.150crs. commands a 30% share.

Pudin Hara registered a 16% increase in sales while Hajmola sales grew by 9%.

Dabur’s candy portfolio consisting of Hajmola candy, and the three new flavors; Kachcha Aam, Natkhat Nimbu and Mint Masala registered a 22% increase.

M kt Size Dabur M kt Share500crs. 150crs. 30%

Page 12: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecPersonal Care

Hair Oils

Dabur managed to maintain its market share as the hair oil market grew 13%. The Amla franchise with sales of about Rs.250 crs. grew by an impressive 18%. The Anmol brand also performed well with a healthy 17.3% growth.

Shampoos

with its Vatika range of shampoos. Dabur increased its market share as the market grew 15% and the company’s range grew by 25%.

The hair care segment with sales of Rs.522crs. contributed 29% to FY08 revenues

Hair Oil Market

17%

33%6%3%

41%

Dabur Marico Bajaj Dey's Labs Others

Shampoo Market

6%13%

51%

4%

26%

Dabur CavinKare HUL L'Oreal P&G

Hair Care

M k t S iz e D a b u r M k t S h a re2 5 0 0 c rs . 4 2 0 c rs . 1 7 %

M k t S iz e D a b u r M k t S h a re1 8 0 0 c rs . 1 0 2 c rs . 6 %

Page 13: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecFoods & Home CareFruit Juices

51%34%

2%8% 5%

Dabur Tropicana Godrej XS Fresh Gold Others

Air Freshners

94%

6%

Dabur Others

Mosquito Repellant

91%

9%

Dabur Others

Foods

Dabur recorded a healthy 19% growth in the foods segment and with sales of Rs.241crs. enjoys a healthy 51% market share.

Home Care

The home care market is estimated to be worth Rs.2000crs. Dabur records a revenue of Rs.100crs through its presence in air fresheners and mosquito repellant cream category where it commands 94% and 91% market share respectively.

M kt Size Dabur M kt Share473crs. 241crs. 51%

Page 14: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecInternational Business DivisionThe International Business division manages Dabur’s business in Middle East and North Africa (MENA). The division contributes about 16% to Dabur’s annual revenues.

Sales have grown by 25.5% from Rs.299crs. to Rs.376crs. In FY08.The company has built its brand architecture in these regions with the Dabur and Vatika brands.

The company has divided its target markets into Focus, Potential and Opportunistic markets. While the initial focus of the company was to cater to the Indian population in the MENA region, the company now has moved towards identifying needs of consumers in these regions of localizing the products portfolio on offer.

Also the company is not relying on its portfolio of domestic products for international sales. The company has been proactive and in line with its innovation strategy, is launching products catering the specific needs of consumers in various target markets abroad. Its has launched of Vatika Olive and Vatika Cactus have helped the Vatika brand increase its revenues 90%. It has also outsourced Italian technology and developed intensive hair treatment masks under the Vatika Naturals Hamam Zaith brand.

Page 15: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecConsumer Health DivisionThis division comprises Dabur’s range of ayurvedic products which have use in health related issues. This division consist of the OTC market and the ethical brands and classical segment. The OTC forms about 57% of this market and the ethical and classical segment 43%. The OTC market in India is estimated at Rs.7500crs and the ethical at Rs.500crs.

The consumer health division is relatively small and contributes about 7.5% to Dabur’s annual revenue. However given the low levels of penetration, the company believes there is considerable scope in this business. The company also believes that the growing preference for herbal/ayurvedic healing without side-effects will lead to improved performance going forward.

Sales increased by 5.4% from Rs.147crs. in FY07 to Rs.155crs. In FY08. This division is currently in a consolidation phase. The company is following a two pronged approach to enhance growth in this segment. The first is to build upon the existing offerings by improving the products line. So far over 50% of the OTC portfolio has undergone extensive package up gradation. The second part involves the aggressive launch of new products across OTC categories.

In the first half of FY09 this division has grown 12% as effects of consolidation have started kicking in.

Page 16: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecRetailDabur has forayed into the retail segment through its wholly owned subsidiary H&B Stores Ltd. The company will run a chain of retail stores across India under the brand newU. The stores will retail the latest branded cosmetics, fragrances, skin, face, baby and family care along with fashion accessories and jewelry.

The stores are to be located at airports, business parks, high street markets and such specialized locations. The company launched its first store in March 2008, and there are 6 operational outlets. The company plans to have 12-13 operational by the end of FY09 and targeting 350 stores in the next 5 years.

The company has planned a equity investment of Rs.140crs. In this venture over the next 3 years. During FY09 the company will launch products under its private label, leveraging its expertise in ayuervedic and herbal products. While the venture will require investments in the initial years, the company expects the venture to reach optimal scale in about 2 years time.

Page 17: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecFinancial Performance - 5 years

2004 2005 2006 2007 2008ROE 37.2 42.8 43.1 59.0 54.1

Asst TO 3.0 2.8 3.1 3.2 3.3

Lev 1.5 1.5 1.2 1.3 1.2

NPM 8.4 10.4 11.5 13.9 14.1

Avg Receivables Days 29.9 18.0 14.7 19.3 24.3

Avg Inventory Days 111.1 92.8 87.8 82.0 86.1

Average Payable Days 24.2 24.8 28.5 30.4 40.5

Cash Conversion Cycle 116.8 86.0 73.9 71.0 69.9

Gross Margins 51.3 53.2 53.6 48.8 49.7

EBIDTA Margins 14.7 12.4 15.1 15.3 16.5

EBIT Margins 13.5 11.6 14.2 14.6 15.7

Page 18: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecDabur has achieved consistent growth in return on equity from 20% in 2003 to 54% in 2008. While the company has reduced leverage from 1.5 in 2003 to 1.2 in 2008, it has improved capital efficiency substantially, increasing the asset turnover from 2 times in 2003 to 3 times in 2008. Other than the improvement in capital efficiency the main driving force behind the improvement in ROE has been the increase in net profit margins from 6.7% in 2003 to 14.1% in 2008.

The average receivables days for the company has come down to 24 days and is in line with industry standards. The company’s average inventory turnover period at 86 days is also now in line with industry standards. The days payable period varies through the industry.

The company's cash conversion cycle has halved from 142 days in 2003 to 69 days in 2008 resulting in higher free cash flows for the company.

On the margin front Dabur has seen deterioration in gross margins in the past two years, however continual improvement in operational efficiency has seen EBIDTA margins improve from 12.3% in 2003 to 16.5% in 2008

Page 19: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecIncome StatementRs./crs. 2007 2008 2009e 2010e 2011e

Net Sales 2043.1 2361.1 2745.0 3225.3 3870.4

COGS 1045.3 1186.7 1388.9 1644.9 1973.9

Gross Profits 997.8 1174.3 1356.0 1580.4 1896.5

SG&A 582.8 672.9 789.2 911.2 1093.4

Other Expenses 71.8 97.8 109.4 129.0 154.8

Depreciation 34.3 36.4 42.7 51.0 60.0

Operating Profits 309.0 367.2 414.7 489.2 588.3

Interest 15.4 16.8 15.9 16.8 18.6

Other Income/Expenses 25.9 34.0 31.6 49.1 58.7

Earnings before Tax 319.5 384.4 430.4 521.5 628.4

Tax 37.3 50.7 60.3 73.0 88.0

Net Income 282.2 333.8 370.1 448.5 540.4

EPS 3.07 3.61 4.28 5.19 6.26

Page 20: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecBalance Sheet

Liabilities (Rs./crs) 2007 2008 2009e 2010e 2011e

Equity 86.3 86.4 86.4 86.4 86.4

Reserves 393.3 531.2 706.9 917.8 1177.5

Networth 479.6 617.6 793.3 1004.2 1263.9

Minority Interest 4.5 4.8 4.8 4.8 4.8

Debt 159.9 99.2 109.8 129.0 154.8

Total Liabilities 643.9 721.5 907.9 1138.0 1423.4

Assets (Rs./crs) 2007 2008 2009e 2010e 2011e

Net Block 347.4 417.6 476.6 630.5 680.7

Capital WIP 7.3 44.4 50.0 26.3 15.0

Investments 80.7 203.7 238.7 303.1 497.5

Net Current Assets 188.7 41.8 184.5 202.1 245.2

Misc Expenses Not w/o 19.8 14.0 8.1 2.2 0.0

Total Assets 643.9 721.5 907.9 1138.0 1423.4

Page 21: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSec

Amit Nalin Securities Pvt. Ltd.142/A, Mittal Tower,Nariman Point, Mumbai 400021

Phone no.: +91 22 4002 1601

Institutional Equity Desk – 91 22 4002 1605

Research Desk - +91 22 4002 1604

Email : [email protected]

Research Team:

Amit Dalal

Rujuta Dalal

Vinod Malviya

Moiz Tambawala

Amruta Vaidya

Thank You

Page 22: Dabur India Ltd.ansec.in/ansec/uploaded_files/ANSec_Research_Dabur_India.pdf · Dabur India Ltd. CMP: Rs.65CMP: Rs.65 Target: Rs.110Target: Rs.110 Rated: BuyRated: Buy. Amit Nalin

Amit Nalin Securities Pvt. Ltd.

ANSecDisclaimerThis document has been prepared by Amit Nalin Securities Pvt Ltd.

This document does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information contained herein is from publicly available data or other sources believed to be reliable. While we would endeavor to update the information herein on reasonable basis, Amit Nalin Securities, director and employees are under no obligation to update or keep the information current. Also, there may be regulatory, compliance, or other reasons that may prevent Amit Nalin Securities from doing so.

We do not represent that information contained herein is accurate or complete and it should not be relied upon as such. This document is prepared for assistance only and is not intended to be and must not alone betaken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved). The investment discussed or views expressed may not be suitable for all investors. This report is not directed 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, regulation or which would subject Amit Nalin Securities Pvt Ltd to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Reports based on technical analysis centers on studying charts of a stock's price movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match with a report on a company's fundamentals. Amit Nalin Securities Pvt Ltd may have used the information set forth herein before publication and may have positions in, may from time to time purchase or sell or may be materially interested in any of the securities mentioned or related securities. Any comments or statements made herein are those of the analyst and do not necessarily reflect those of Amit Nalin Securities.This Document is subject to changes without prior notice and is intended only for the person or entity to which it is addressed to and may contain confidential and/or privileged material and is not for any type of circulation. Any review, retransmission, or any other use isprohibited. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. Amit Nalin Securities will not treat recipients as customers by virtue of their receiving this report.

Disclosure of interest:Amit Nalin Securities have not received compensation from the company covered herein in the past twelve months for Issue Management, Capital Structure,Mergers & acquisitions, Buyback of shares and Other corporate advisory services.