ireightForward_April2013

7/29/2019 ireightForward_April2013

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April 12, 2013Freight Forward

ICICI Securities Ltd|Retail Equity Research

Shipping Monthly Report April 2013

The Baltic Dry Index (BDI) gained significantly by 20% (on alower base) post Chinese New Year holidays to 910. However,rates are expected to remain weak due to poor offtake incargo. The Baltic Capesize Index remained flattish for themonth but the average index declined~9% on an MoM basis.Smaller size vessel indices showed vigour with BalticPanamax, Supramax and Handymax index gaining 18.8%,23.6% and 25.5%, respectively

The Clean Tanker Index (BCTI) remained flattish on an MoMbasis at around 691. However, the Dirty Tanker Index (BDTI)declined ~5.2% in March 2013. VLCC charter rates (TCY)turned positive albeit at a significantly lower level of 357.Suezmax and Aframax levels also convalesced to 6472 and9422 levels, up 43% and 19%, respectively, on an MoM basis LPG rates remained flattish for smaller segment vessels (up toMGC-TC 35000 cbm) but VLGC rates softened up to 2% MoM.LGC segment vessel rates firmed up ~1% MoM Utilisation levels for the offshore segment remained underpressure with drillship utilisation declining 2%, semi-sub 1%and jack-up remaining flattish

OutlookDry bulkersThe dry bulk segment continued to reel under pressure amid poor off-take

of iron-ore from China. As iron-ore prices remain relatively high, steelmills in China remain deterrent to restocking putting further pressure on

cargo demand. Chinese imports from top four major importers continue

to decline dashing hopes of revival anytime soon. Large vessel charter

rates persistently remain under pressure. However, the smaller segment

continues to do well due to grain cargo from Brazil. In the near term,

smaller vessel segment charter rates are expected to remain range bound

whereas larger vessel rates will continue to remain stressed. On the

capacity supply front, we see unprecedented capacity addition in the dry

bulk segment to the tune of 6.3 million dwt or 29 Capesize over the past

month for 2015 delivery, taking the total order book for dry bulk to 99

million dwt for 2015. This is expected to dash any hope of revival in the

dry bulk segment post 2015 if the cargo demand remains muted.TankerVLCC charter rates revived post plummeting in February 2013. The

recovery was muted on the back of exacerbating demand from the US

and lower production from Middle Eastern companies. However,

Suezmax and Aframax rates held steady due to stable demand from

Mediterranean and Caribbean region.LPG carriersVLGC rates snapped their gain and softened ~2% whereas the LGC

segment gained ~1% MoM. However, lower segment vessels rates

remained flattish. LPG carrier rates are expected to remain range bound in

the near term.Offshore vesselsDrill-ship utilisation in the offshore vessels segment declined 200 bps to89% whereas Jack-up and semi-sub rates remained flattish at 86% and

91%, respectively. Charter rates in the segment are expected to remain

flattish in the short to medium term.

ctorderweight

eight Index Movement March 2013

1M 6M 1Yr.

ty Tanker Index 661 -5 2 -19

an Tanker Index 691 0 8 8

tic Dry Index 910 20 19 -3

pesize Index 1,249 0 -23 -12

namax Index 1,176 19 177 12

pramax Index 944 24 14 -8

set Class CurrentChange (%)

eight Rates March 2013

VLCC

Suezmax

Aframax

Capesize

Panamax

Supramax

Handysize

alysts name

harat Chhoda

[email protected]

oumojeet Kr Banerjee

[email protected]


2/15

Page 2ICICI Securities Ltd|Retail Equity Research

The VLCC TCY rates recovered marginally in March 2013. VLCC demand

was muted due to a decline in tonnage-mile demand on account of

maintenance in US refineries and pick-up in domestic production. China is

expected to ramp up its refining capacity and is anticipated to be a prime

mover for crude demand in future. However, in the short-term, the VLCC

segment is expected to be in pain. Smaller vessels demand and supply

are well poised and rates are expected to be range bound. On thecapacity front, 3 million dwt was added to the global fleet in March 2013

taking the total order-book to 46.6 million dwt. Scrapping in the segment

remained slightly muted with ~0.6 million tonnes (MT) going for

scrapping in March 2013. Softening of crude demand coupled with fairly

strong addition of capacity acts as a double whammy for the segment

culling scope for any significant rate hike in the near term.

Exhibit 1:Tankers TCY (US$ per day)Asset class Nov-12 Dec-12 Jan-13 Feb-13 Mar-13

VLCC 11276 11630 5199 -1525 357

Suezmax 5600 5733 8678 4518 6472

Aframax 8927 7457 9200 7925 9422Source: Bloomberg, ICICIdirect.com Research

Exhibit 2:LPG T/C (US$ per day)Monthly Daily Monthly Daily

VLGC-TC 78,000 cbm 845,000 27,796 830,000 27,303

LGC-TC 57,000 cbm 905,000 29,770 915,000 30,099

MGC-TC 35,000 cbm 805,000 26,480 800,000 26,316

MGC-TC 30,000 cbm 610,000 20,066 610,000 20,066

MGC- TC 28,000 cbm 610,000 20,066 610,000 20,066

MGC- TC 24,000 cbm 840,000 27,632 840,000 27,632

Asset class

Feb-13 Mar-13

Source: Bloomberg, ICICIdirect.com Research

Exhibit 3:China's monthly iron ore inventory

30

50

71

91

111

Mar-10

Sep-10

Mar-11

Sep-11

Mar-12

Sep-12

Mar-13

mlntonnes


Category wise average tanker freightrates

26.7 23.3

15.9

-

5

10

15

20

2530

35

40

VLCC

Suezmax

Aframax

US$/dayThousand

s

Eight year average

LPG carrier rates for the segment VLGC declined ~2%on an MoM basis. However, LGC (57000 cbm)segment gained ~1% in March 2013. Other vesselcategories rates remained flattish on an MoM basis

Iron ore inventory in China continued itsdecline remaining below the critical levelof 70 MT for three straight months. Withiron ore price at around $136/tonne, steelplants are keeping away from restocking.Consequently, cargo offtake is mutedputting pressure on charter rates


3/15


Exhibit 4:Asia Pacific Iron Ore Index

0

100

200

300

400

500

600

Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13

Index


Exhibit 5:China iron ore import trend analysis

0

5

10

15

20

25

30

35

40

Oct-10

Feb-11

Jun-11

Oct-11

Feb-12

Jun-12

Oct-12

Feb-13

mlntonnes

Australia Brazil India S. Africa


Exhibit 6:Chinas monthly steel production

0

10

20

30

40

50

60

Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13

mlntonnes


The Asia Pacific Iron Ore Index declined 8% on an MoMbasis due to continued muted activity in the month

Chinese import of iron-ore from four majorimporters declined 14% on an MoM basisDuring the month, Australia saw the highestdecline in terms of absolute volume, followedby South Africa. Total Chinese imports frommajor importers remained at 56.4 MT against65.5 MT a month ago

Chinese monthly steel output declined ~3%MoM on the back of a slump in global demand


4/15


Exhibit 7:Coal Index

0

200

400

600

800

1000

1200

1400

Mar-11 Sep-11 Mar-12 Sep-12 Mar-13

Index

BWCOAL Index BPRCOAL Index


Exhibit 8:Weekly dry bulk indices movement

500

800

1100

1400

1700

2000

7-Mar-13 14-Mar-13 21-Mar-13 28-Mar-13

Index

Baltic Dry Index Baltic Capesize Index Baltic Panamax Index


Exhibit 9:Dry bulk indices

0

2000

4000

6000

8000

Mar-09

Sep-09

Mar-10

Sep-10

Mar-11

Sep-11

Mar-12

Sep-12

Mar-13

Index

BDI BCI BPI


Both the World Coal Index and Asia PacificCoal Index declined 6.2% and 7%, respectively,on an MoM basis

Rising from a low base, all three indices BDI,BCI and BPI showed a rebound in theirsegment on a week-on-week basis. The ratesimproved on an average by 6% on a WoWbasis for BDI and BPI.

BDI rates recovered in March 2013 to 910levels post recovery from New Year holidays.However, the demand situation still remainsmuted capping significant upsides

The Capesize index continues to sink down~9% MoM in March 2013

The Baltic Panamax Index (BPI) rates firmed upfurther by ~ 19% on a MoM basis

The Supramax index improved 23.6% MoMwhereas Handymax rates firmed up by ~25.5%on an MoM basis

In the dry bulk segment, around 106 milliondwt was added in CY12 and approximately 62million dwt is expected to join the world fleet in

the rest of CY13. As significant tonnageaddition is expected in the forthcoming months,rates are expected to remain subdued


5/15


Exhibit 10:International crude oil prices

0

20

40

60

80

100

120

140


$/barrel


Exhibit 11:Baltic clean and dirty tanker index

200

400

600

800

1000

1200

1400

Mar-10

Sep-10

Mar-11

Sep-11

Mar-12

Sep-12

Mar-13

Index

Baltic clean tanker index Baltic dirty tanker index


Exhibit 12:Tanker rates trend

-15000

0

15000

30000

45000


US$/day

VLCC Suezmax Aframax


Average crude price for March 2013 stood at$109.2 against an average price of$116.5/barrel in February 2013. Crude priceson an average declined ~6% for the month

The Baltic Clean Tanker Index remained flattishwhereas the Baltic Dirty Tanker Index declinedby 5.2% on MoM basis

Average VLCC TCY rates recovered marginallyto 357 levels in March 2013. However,Suezmax and Aframax rates recoveredsignificantly by ~43% and 19%, respectively,for March 2013

Tanker rates trend -Yearly average

-

10

2030

40

50

60

70

CY05

CY06

CY07

CY08

CY09

CY10

CY11

CY12

CY13

Thousands

US$/day

VLCC Suezmax

Aframax


Average TCY rates in the tanker segment on aYTD basis remain high compared to thecorresponding period in the previous year.

However, the average TCY rate is stillsignificantly lower than their historical highs


6/15


Exhibit 13:Offshore vessel utilisation levels90 89 90 89 91 8990 90 89 92 9187 85 86 85 86 8690

0

10

20

30

40

50

60

70

80

90

100

Oct-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-13

%uti

lisation

Drillship Semisub Jack up


Exhibit 14:BPR Asia Pacific Shipbuilding Index

0

200

400

600

800

1000

Mar-10

Sep-1

0

Mar-11

Sep-1

1

Mar-12

Sep-1

2

Mar-13

Index


Exhibit 15:Global order book size

Category wiseorder book

No ofvessels dwt (Mln) No of vessels dwt (Mln)

No ofvessels dwt (Mln)

No ofvessels dwt (Mln)

Tankers

VLCC 60 19 33 11 22 7 5 2

Suezmax 67 9.9 35 5 11 2 21 3

Aframax 35 3.9 12 1 23 3 0 0

Smaller 303 13.8 130 5 112 5 61 3

Total 465 46.6 210 23 168 16.5 87 8

Dry Bulk

Capesize 187 38.7 110 23 41 9 36 7

Post panamax 52 5.1 39 4 10 1 3 0

Panamax/Kamsarmax 359 28.5 232 18 101 8 26 2

Handy/Supramax 289 16.2 189 11 86 5 14 1handysize 312 10.5 174 6 95 3 43 2

Total 1199 99.0 744 62 333 25.7 122 12

To be delivered in

2013 2014 2015

Source: RS Platou, Bloomberg, ICICIdirect.com Research

Utilisation levels for drill ships declined 2% to89% whereas semi-subs and jack-ups remainedmostly flattish at 91% and 86%, respectively, inMarch 2013

Utilisation levels for drill ships, semi-sub and

jack-up remained flattish post their ramp up inJanuary 2013. However, average utilisationlevel for drill ship, semi-subs and Jack-upremains around 91%, 91% & 86%, respectively,for YTD CY13

Higher average utilisation of vessels in theoffshore segment provides stability to rates inthis segment

Average utilisation levels (%)

CY11 CY12 CY13

Drillship 80 87 91

Semisub 86 88 91

Jack up 80 84 86

The Shipbuilding index declined significantly by7.5% MoM. The Chinese government in anattempt to boost the segment has released aslew of measures to revive the sector rightfrom liberal credit facility to extending incentivefor scrapping


7/15


Exhibit 16:Order book & deliveries

0

50

100150

200

250

300

350400

450

500

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013#

Total Deliveries (Tankers & Drybulk) Total Neworders (Tankers & Drybulk)

Total Orderbook (Tankers & Drybulk)

Source: RS Platou, ICICIdirect.com Research

Years

Total Deliveries

(Tankers & Drybulk)

Total Neworders

(Tankers &

Drybulk)

Total Orderbook

(Tankers &

Drybulk)

2001 34 36 83

2002 37 41 75

2003 42 77 86

2004 46 65 124

2005 52 42 144

2006 51 120 1412007 60 214 219

2008 69 142 383

2009 96 45 469

2010 121 124 403

2011 141 38 370

2012 141 31 149

2013# 28 12 146 Deliveries, new orders & order book in million dwt # YTD

Source: RS Platou, ICICIdirect.com Research

The table shows the rise in total deliveries vis--vis declinein new orders and depletion of pending order book

Column B shows the trend of new orders during 2001-11.Average new orders during 2001-05 were ~52 million dwt,which got ramped up significantly to 159 million dwt over2006-08

Column A displays the trend of total deliveries over 2001-11. The average delivery during 2001-06 in the tanker anddry bulk segment was 43 million dwt, which increased

significantly to 97 million dwt in 2007-11 due to theenormous ordering that was done over 2006-08 (dottedbox)

However, subsequently with the global economic slump inlate 2008 and consequent decline in demand and daycharter rates, fresh enquiries and ordering declinedconsiderably. The shipbuilding industry is currently battlingdual issues of drying order book and delay/cancellations ofpending orders

On the deliveries front; 141 million dwt has been added tothe world fleet in CY12 with dry bulk absorbing 106 milliondwt and tankers 35 million dwt. For the rest of CY13, ~85million dwt is expected to join the global fleet. Of this, drybulk is expected to add 62 million dwt and tanker 23 million

dwt. For March 2013, 6.3 million dwt in the dry bulksegment and 3 million dwt in the tanker segment have beenadded to the world fleet

Cumulative new order to the tune of 12 million dwt wasrecorded in tankers and dry bulk till February 2013 withbreak-up of 6 million dwt in dry bulk and 6 million dwt intanker

Total pending order book (till CY15) is still strong with~146 million dwt yet to be delivered. The order book breakup at the end of February 2013 stands at 99.0 million dwtfor dry bulk carriers and 46.6 million dwt for tankers


8/15


Exhibit 17:GE Shipping price movement

0

100

200

300

400

500


|

0

2000

4000

6000

8000

10000

Index

GE Shipping BDI


0.00

100.00

200.00

300.00

400.00

500.00


|

0

500

1000

1500

2000

2500

Index

GE Shipping Dirty Tanker Index


Exhibit 18:Mercator Ltd price movement

0

20

40

60

80100

120


|

0

2000

4000

6000

8000

10000

Index

Mercator Lines BDI



9/15


0

20

40

60

80

100

120


|

0

500

1,000

1,500

2,000

2,500

Index

Mercator Lines Dirty Tanker Index


Exhibit 19:Shipping Corporation of India price movement

0

50

100

150

200

250


|

0

2000

4000

6000

8000

10000

Index

SCI BDI


0

50

100

150

200

250


|

0

500

1000

1500

2000

2500

Index

SCI Dirty Tanker Index



10/15


Exhibit 20:Aban Offshore price movement

0

300

600

900

1200

1500

1800


|

0

30

60

90

120

150

$perday

Aban Offshore Crude Oil Prices


Exhibit 21:Global Offshore price movement

0

50

100

150

200

250


|

0

30

60

90

120

150

$perday

Global Offshore Crude Oil Prices


Exhibit 22:Pipavav Defence & Offshore price movement

0

20

40

60

80

100

120


|

0

100

200

300

400

500

600

700

800

Index

Pipavav Defence & Offshore Shipbuilding Index

`



11/15


Exhibit 23:ABG Shipyard price movement

0

50

100

150

200

250

300

350400

450

500


|

0

100

200

300

400

500

600

700

800

Index

ABG Shipyard Shipbuilding Index


Exhibit 24:Bharati Shipyard price movement

0

100

200

300

400


|

0

100

200

300

400

500

600

700

800

Index

Bharati Shipyard Shipbuilding Index



12/15


Global Valuations

CY12E CY13E CY14E CY12E CY13E CY14E CY12E CY13E CY14E CY12E CY13E CY14E

Dry Bulk

Diana Shipping* USA 0.5 0.5 0.6 12.2 NA 64.7 5.7 11.3 8.1 4.7 -0.1 0.9DryShips* USA 0.2 0.2 0.2 NA 18.8 2.0 12.2 7.7 4.8 -4.0 0.5 7.2

Genco Shipping* USA 0.1 0.2 0.2 NA NA NA 23.0 18.3 10.1 -11.7 -11.9 -6.8

Mercator # India 0.2 0.2 0.2 23.5 10.1 5.5 5.0 4.3 3.8 0.8 2.0 3.5

Tanker

Frontline Ltd* Norway 2.0 2.0 1.9 118.7 - 23.1 NA NA NA 2.0 -1.3 5.9

Overseas Shipholding Group* USA 0.0 0.0 0.0 - - - 34.3 16.7 10.9 -12.9 -8.8 -2.8

Teekay Corp.* USA 1.7 1.8 2.0 - 206.1 30.1 12.6 11.5 10.5 -2.9 2.5 6.0

GE Shipping# India 0.6 0.6 0.6 8.1 11.9 7.1 6.1 5.6 4.8 7.8 5.3 8.0

SCI# India 0.4 0.4 0.4 - - - 282.4 26.2 30.2 -6.4 -0.4 -4.5

LPG/LNG

Exmar* Belgium 1.6 1.5 1.4 29.0 11.9 14.1 10.7 10.1 10.9 11.0 9.4 7.6

Varun Shipping# India NA NA NA NA NA NA NA NA NA NA NA NA

Offshore

Diamond Offshore* USA 2.2 2.1 1.8 15.4 14.0 9.6 7.7 7.0 5.1 15.2 17.0 19.9ENSCO* USA 1.2 1.1 1.0 11.5 8.7 7.5 8.9 7.0 6.4 10.6 14.1 13.3

Hercules Offshore* USA 1.1 1.1 1.0 - 20.6 13.1 11.0 5.0 4.6 -12.8 5.1 6.7

Transocean* USA 1.2 1.1 1.0 15.6 11.3 8.9 8.4 6.9 6.0 3.7 10.4 12.2

Aban Offshore# India 0.9 0.6 0.6 4.8 8.9 5.9 6.9 6.0 5.7 11.5 5.5 8.1

Global Offshore# India 0.6 0.5 0.4 6.2 2.8 3.1 7.1 4.6 5.8 9.0 17.1 13.5

Great Offshore# India 0.3 0.3 0.3 - - - 7.8 6.6 5.3 -4.0 -6.9 -6.4

SEAMEC# India NA NA NA NA NA NA NA NA NA NA NA NA

Shipbuilding

Daewoo Shipbuilding* South Korea 1.1 1.1 1.0 14.5 11.8 9.1 11.5 10.6 8.9 8.0 9.3 11.0

Hyundai Heavy Industries* South Korea 0.9 0.8 0.8 9.5 8.3 7.4 8.1 7.3 6.6 9.1 10.0 11.0

Keppel Corp. Ltd* Singapore 2.3 2.1 2.0 10.4 13.0 12.7 10.2 12.2 11.7 23.4 16.8 16.2

Samsung Heavy Industries* South Korea 1.6 1.4 1.2 10.0 9.9 9.0 6.4 6.4 6.0 20.6 16.3 15.5

Sembcorp Marine* Singapore 3.6 3.9 3.5 12.8 16.1 14.1 10.0 11.4 9.6 17.0 14.9 14.4

ABG Shipyard# India 1.6 1.3 1.3 10.3 10.8 13.2 4.4 4.3 4.5 15.3 12.7 9.8

Bharati Shipyard# India NA NA NA NA NA NA NA NA NA NA NA NA

Port and Terminal

DP World* Dubai 1.4 1.4 1.3 21.2 20 18 11.3 10.4 9.3 6.5 6.6 7.1

Adani Port*# India 4.6 3.7 3.0 22.4 15.8 13.0 16.1 12.6 10.9 23.0 26.0 24.1

Conglomerate

A P Moller - Maersk A/S* Denmark 1.0 0.9 0.8 10.8 9.7 7.7 4.0 3.7 3.4 9.7 9.9 10.7

China COSCO* China 1.4 1.4 1.3 NA NA 15.7 NA 27.6 12.9 -20.1 -3.1 8.0

Kawasaki Kisen*# Japan 0.5 0.5 0.5 43.8 14.7 7.9 8.2 7.2 6.1 1.2 3.1 6.2

Mitsui OSK Lines*# Japan 0.5 0.5 0.5 NA 163.1 21.4 17.7 12.8 10.8 -3.5 0.4 2.8

Nippon Yusen*# Japan 0.6 0.6 0.6 185.3 15.3 9.8 10.9 8.9 7.9 1.1 3.8 6.0

EV/EBITDA (x) ROE (%)

Company Country

P/BV (x) P/E (x)


# With regards to Indian companies and Mitsui, three year data represents FY12, FY13 and FY14 (financial year ending in March)


13/15


ICICIdirect.com coverage universe (Shipping)

CMP (|) TP (|) Rating Mcap (| Cr) FY12E FY13E FY14E FY12E FY13E FY14E FY12E FY13E FY14E FY12E FY13E FY14E FY12E FY13E FY14E

Aban Offshore 256 386 BUY 1,392.0 40.2 60.4 65.5 8.9 5.9 5.4 6.0 5.7 5.3 10.4 10.5 11.0 5.5 8.1 8.5

ABG Shipyard 325 349 HOLD 2,005.5 22.2 25.6 26.5 16.6 1 4.4 13.9 4.4 4.0 3.6 19.4 20.6 21.8 1 1.1 11.6 11.1

G.E Shipping 225 280 BUY 3,739.2 35.1 38.6 44.6 7.1 6.4 5.6 4.8 3.5 2.3 4.6 5.5 5.9 8.0 8.2 8.8

Global Offshore 60 85 BUY 142.8 21.8 19.8 21.1 2.8 3.1 2.9 4.6 5.8 5.6 9.0 8.7 8.3 17.1 13.5 12.6Pipavav Defence 75 89 BUY 5,944.3 0.3 0.4 0.6 260.8 187.5 130.5 19.1 16.4 15.3 8.5 8.5 8.8 1.1 1.4 2.0

Guj Pipavav port 50 59 BUY 2,221.8 1.8 2.2 2.8 25.2 20.6 16.4 12.3 10.6 9.2 7.1 7.0 7.2 6.8 7.7 8.9

SCI 43 48 BUY 2,496.7 1.7 -6.3 -3.6 28.3 -7.8 -13.5 18.1 14.9 11.2 -2.4 -2.0 -1.1 1.2 -4.5 -2.7

RoCE (%) RoE (%)EPS (|) P/E (x) EV/EBITDA (x)

Source: ICICIdirect.com Research


14/15


GlossaryTankersVLCC Very large crude carrier - capacity 300000 DWTSuezmax Capacity 120000 to 200000 DWTAframax Capacity 80000 and 120000 in DWTSmall Tankers Capacity 10000 to 60000 DWT

BulkersCapesize Capacity 80000 to 200000 DWTPanamax Capacity 60000 to 100000 DWTHandymax Capacity 40000 to 60000 DWTHandysize Capacity 10000 to 40000 DWT

OffshoreDrill ship Offshore drilling vessel capable to drill in water depths up to 6000 meter. (Deepwater drilling)Semi submersible rig Offshore drilling vessel capable to drill in water depths up to 2000 meter. (Deepwater drilling)Jack up rig Offshore drilling vessel capable to drill in water depths up to 350 meter. (Shallow water drilling)AHTS Anchor handling tag supply vessel used for positioning of jack up rigs.PSV Platform support vessel used for transport of men and material to oil platform and jack up rigs.

LPGVLGC Very large gas carrier capacity 70000+ CBMLGC Large sized gas carrier capacity 50000 - 70000 CBMMGC Mid sized gas carrier capacity 20000 - 50000 CBM

MiscellaneousDWT Dead weight tonneLDT Light displacement tonneTCY Time Charter Yield measures the operating profit of a ship on a daily basis.


15/15

RATING RATIONALEICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its

stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy,

Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the

analysts' valuation for a stock.

Sector view:

Over weight compared to index

Equal weight compared to index

Under weight compared to index

Index here refers to BSE 200

Pankaj Pandey Head - Research [email protected] Research Desk,ICICI Securities Limited,1st Floor, Akruti Trade Centre,

Road No. 7, MIDC

Andheri (East)

Mumbai 400 093

[email protected]

ANALYST CERTIFICATIONWe /I, Bharat Chhoda MBA (Finance), Soumojeet Kr Banerjee MBA (Finance), research analyst and the author of this report, hereby certify that all of the views expressed in this research report

accurately reflect our personal views about any and all of the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the

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