Lakshmi Vilas Bank Ltd. BUY - 1 of 23 - Tuesday 17 th March, 2015 This document is for private circulation, and must be read in conjunction with the disclaimer on the last page. STOCK POINTER Target Price `154 CMP `97 FY17E Adj. P/BV 1x Index Details Lakshmi Vilas Bank (LVB) is one of the oldest private sector banks in the country. Based in Tamilnadu, it has a strong regional base in southern India. The bank has business book of `33,705 crore as on Q3FY15. During the economic downturn in FY11-14, bank’s asset quality deteriorated substantially as its corporate portfolio (more than 7.5% of its lending book) took a significant hit due to NPAs which impacted profitability drastically. However, with the change in focus towards high yielding Retail and MSME lending along with significant recovery and upgradation of NPAs to standard asset category we expect a revival in the bank’ s return ratio over the forecasted period. Further, we expect margin expansion to be driven by increase in low cost CASA deposits. The following factors drive our optimism on the company’s prospects: Advances are expected to grow at a robust three year CAGR of 18% to `21,261 crore in FY17E on the back of a thrust on Retail and MSME banking. Further, the bank is in a good position to leverage its rural and sub urban presence to fund the next leg of growth. Its advance mix is expected to shift in favour of Retail & MSME lending by 200 bps to 23%. Deposits are expected to grow at a CAGR of 16% to `29,225 crore in FY17E, fuelled by the 475 bps increase in low cost CASA deposits to 19% over the forecasted period. Growth in Savings Accounts is expected to be much higher at a CAGR of ~23% vis-à-vis the 14% CAGR growth in Term Deposits. Owing to the increasing low cost CASA base along with the improved share of high yielding retail and MSME in the bank’s lending profile, we expect the PAT to grow at a 3 year CAGR of 54% to `222 crore. NII is expected to register a CAGR of ~21% to `853 crore during the same period. NIMs are expected to expand marginally by 20 bps to 3.08% by FY17E. Sensex 28,736 Nifty 8,723 BSE 100 8,845 Industry Bank Scrip Details Mkt Cap (` cr) 1736 BVPS (`) 81.5 O/s Shares (cr) 18.1 Av Vol (Lacs) 3.3 52 Week H/L 104/47 Div Yield (%) 0.8 FVPS (`) 10 Shareholding Pattern Shareholders % Promoters 9.6 DIIs 6.1 FIIs 10.9 Public 73.4 Total 100.0 LVB vs. Sensex Key Financials (` in Cr) Y/E Mar Net Interest Income Non Interest Income PAT EPS (`) Adj.BV (`) P/E (x) P/Adj. BV (x) ROA (%) ROE (%) 2014 486 218 60 6 89 15.7 1.0 0.3 6.2 2015E 573 248 118 12 112 7.9 0.8 0.5 10.6 2016E 718 263 176 18 131 5.3 0.7 0.7 13.9 2017E 853 296 222 23 152 4.2 0.6 0.7 15.2 0 5000 10000 15000 20000 25000 30000 35000 0 20 40 60 80 100 120 01-Jan-14 01-Feb-14 01-Mar-14 01-Apr-14 01-May-14 01-Jun-14 01-Jul-14 01-Aug-14 01-Sep-14 01-Oct-14 01-Nov-14 01-Dec-14 01-Jan-15 01-Feb-15 01-Mar-15 LVB SENSEX
23
Embed
Lakshmi Vilas Bank Ltd. - Moneycontrolchats.moneycontrol.com/plus/upload_pdf_file/Lakshmi Vilas Bank... · Lakshmi Vilas Bank Ltd. BUY ... We initiate coverage on Lakshmi Vilas Bank
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Lakshmi Vilas Bank Ltd.
BUY
- 1 of 23 - Tuesday 17th
March, 2015
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
ST
OC
K P
OIN
TE
R
Target Price `154 CMP `97 FY17E Adj. P/BV 1x
Index Details Lakshmi Vilas Bank (LVB) is one of the oldest private sector banks in the country. Based in Tamilnadu, it has a strong regional base in southern India. The bank has business book of `33,705 crore as on Q3FY15. During the economic downturn in FY11-14, bank’s asset quality deteriorated substantially as its corporate portfolio (more than 7.5% of its lending book) took a significant hit due to NPAs which impacted profitability drastically. However, with the change in focus towards high yielding Retail and MSME lending along with significant recovery and upgradation of NPAs to standard asset category we expect a revival in the bank’s return ratio over the forecasted period. Further, we expect margin expansion to be driven by increase in low cost CASA deposits.
The following factors drive our optimism on the company’s prospects: Advances are expected to grow at a robust three year CAGR
of 18% to `21,261 crore in FY17E on the back of a thrust on
Retail and MSME banking. Further, the bank is in a good
position to leverage its rural and sub urban presence to fund
the next leg of growth. Its advance mix is expected to shift in
favour of Retail & MSME lending by 200 bps to 23%.
Deposits are expected to grow at a CAGR of 16% to `29,225
crore in FY17E, fuelled by the 475 bps increase in low cost
CASA deposits to 19% over the forecasted period. Growth in
Savings Accounts is expected to be much higher at a CAGR
of ~23% vis-à-vis the 14% CAGR growth in Term Deposits.
Owing to the increasing low cost CASA base along with the
improved share of high yielding retail and MSME in the bank’s
lending profile, we expect the PAT to grow at a 3 year CAGR
of 54% to `222 crore. NII is expected to register a CAGR of
~21% to `853 crore during the same period. NIMs are expected
to expand marginally by 20 bps to 3.08% by FY17E.
Sensex 28,736
Nifty 8,723
BSE 100 8,845
Industry Bank
Scrip Details
Mkt Cap (` cr) 1736
BVPS (`) 81.5
O/s Shares (cr) 18.1
Av Vol (Lacs) 3.3
52 Week H/L 104/47
Div Yield (%) 0.8
FVPS (`) 10
Shareholding Pattern
Shareholders %
Promoters 9.6
DIIs 6.1
FIIs 10.9
Public 73.4
Total 100.0
LVB vs. Sensex
Key Financials (` in Cr)
Y/E Mar Net
Interest Income
Non Interest Income
PAT EPS
(`)
Adj.BV
(`) P/E (x)
P/Adj. BV (x)
ROA (%)
ROE (%)
2014 486 218 60 6 89 15.7 1.0 0.3 6.2
2015E 573 248 118 12 112 7.9 0.8 0.5 10.6
2016E 718 263 176 18 131 5.3 0.7 0.7 13.9
2017E 853 296 222 23 152 4.2 0.6 0.7 15.2
0
5000
10000
15000
20000
25000
30000
35000
0
20
40
60
80
100
120
01-J
an
-14
01-F
eb
-14
01-M
ar-
14
01-A
pr-
14
01-M
ay-1
4
01-J
un
-14
01-J
ul-
14
01-A
ug
-14
01-S
ep
-14
01-O
ct-
14
01-N
ov-1
4
01-D
ec-1
4
01-J
an
-15
01-F
eb
-15
01-M
ar-
15
LVB SENSEX
- 2 of 23 - Tuesday 17th
March, 2015
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
z The Bank is continuously striving towards improving its asset quality
which had peaked in FY14 (GNPA 4.2%). Commendably, its GNPA has
fallen to 3.4% in Q3FY15. Going forward, we expect Gross and Net
NPAs to improve significantly to 2% and 1.5%, respectively, over the
forecasted period. This is significantly more conservative than the
bank management’s own estimates of 1.5% and 1% of Gross and Net
NPAs, respectively.
We initiate coverage on Lakshmi Vilas Bank with a BUY and a target
price of `154. We have valued Lakshmi Vilas Bank based on our target
Price to Adjusted Book Value of 1x on FY17E book value. Our target
price implies an upside of 58% from the CMP. At the CMP of `97, the
bank is trading at 0.8x FY15, 0.7x FY16 and 0.6x FY17 of its Adj. P/BV.
Company Background
Lakshmi Vilas Bank was founded in 1926 by a group of seven progressive
businessmen of Karur, under the leadership of Shri V.S.N. Ramalinga Chettiar.
The bank received its banking license from the RBI in 1958 and became a
Scheduled Commercial Bank. As of Q3FY15, LVB has a wide presence through a
network of 1070 customer outlets, which include 400 branches and ~700 ATMs
with majority of branches concentrated in the Southern part of India, especially
Tamil Nadu. LVB’s major focus areas entail (i) retail banking; (ii) wholesale
banking; (iii) MSME banking and (iv) Agriculture lending. LVB also provides para-
banking services, including money transfers and the distribution of insurance and
mutual fund products.
- 3 of 23 - Tuesday 17th
March, 2015
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Key Investment Highlights
Retail & MSMEs to fund next leg of growth
LVB is embarking on its next leg of growth with a thrust on the Retail and MSMEs
segment. LVB will be leveraging its strength in rural and semi rural areas of
Southern India and we expect the loan book to grow at ~18% CAGR to `21,261
crore by FY17E. In the past, LVB grew its loan book by focusing on wholesale
lending, which helped the bank to achieve a CAGR of ~20% over FY09-14.
However, the economic slowdown had resulted in delinquencies leading to a
deterioration of its asset quality. The bank’s recent shift in focus onto MSME and
Retail should help it diversify its risk portfolio.
We expect a CAGR of 22.5% over FY15-17E in Retail segment, which will scale the
credit book to `7,974 crore by FY17E. The strong traction in the retail book is
expected to be driven by the personal loans (23.2% CAGR), gold loans (19.3%
CAGR) and home loans (18.6% CAGR) segments.
Within retail, gold loans and personal loans comprise 65% of retail advances. LVB
undertakes a considerable amount of secured lending with its LTV in the range of
60% to 80%. Further, LVB also has a tie up with HDFC and Ashok Leyland in order
to source home loans and CV financing through sales channels, respectively.
Advances to clock at a CAGR of 18%
Source: Lakshmi Vilas Bank, Ventura Research
0
5000
10000
15000
20000
25000
FY09 FY10 FY11 FY12 FY13 FY14 FY15E FY16E FY17E
` Crore
- 4 of 23 - Tuesday 17th
March, 2015
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
The bank has launched a ‘LAP’ product called Lakshmi Business Credit which has
shown good traction over FY12-14. It is expected to garner more growth over the
forecasted period with the management aggressively pitching this product to the
customers; it is expected to grow at a CAGR of ~18% - 20%.
Personal & Collateralized Loans amounts to `1,414 & `1,083 crore respectively in FY14
Source: Lakshmi Vilas Bank, Ventura Research
Source: ICICI Bank, Ventura Research
400 bps increase in share of Retail Segment by FY17E
Source: Lakshmi Vilas Bank, Ventura Research
38%
24%
23%
15%
34%
28%
21%
18%
FY 14 FY 17E
6.3%
0.9%2.4%
11.7%
20.8%
32.6%
25.0%
Housing
Auto Loan
Education Loans
Gold loans
Other Personal Loans
Personal Loans
Loans collateralised by Deposits
FY 14
We expect strong traction in personal loans, gold loans and loans collateralized by deposits which are expected to grow at a CAGR of 15%, 21% and 18% respectively over the forecasted period.
- 5 of 23 - Tuesday 17th
March, 2015
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
The MSME market is grossly under–penetrated with Banks & Institutional services
covering only 22%* of its finances. This provides LVB with a significant opportunity
to increase its loan book by leveraging its rural and sub-rural reach & market
expertise to provide them with term and working capital loans for shorter durations
(1 to 3 years). We expect the MSME segment to grow at a CAGR of 22.2% over
FY15-17E.
*Source: Annual Report-MSME-2013-14P
Given the weak global economy and sluggish corporate demand, corporate
business is expected to lag the retail & MSME segments. We expect the corporate
loan book to grow at a CAGR of 13.1% to Rs. 5,155 crore by FY17E.
Focus on CASA growth; 19% targeted by FY17E LVB’s CASA ratio at 14.2% in FY14 is relatively lower than other private sector
banks, largely owing to slower branch additions (7.5% CAGR FY09-FY14) and an
erstwhile focus on term deposits. However, now LVB has revamped its strategy
towards driving the low cost CASA deposits through branch expansion (added 125
branches in last two years) and hired a dedicated sales force of 500 employees with
an incentivized pay structure to mobilize CASA. Further, the increased focus
towards the MSME segment should augur well for CA mobilization and help
improve the CASA ratio steadily to ~19% by FY17E (Rs. 5,553 crore). Savings
deposits are expected to grow at a CAGR of ~22.3% to Rs. 3,163 crore by FY17E.
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
NIM expansion of 20 bps over the forecasted period is expected
Source: Lakshmi Vilas Bank, Ventura Research
LVB needs to catch up with industry on margins front
Source: Lakshmi Vilas Bank, Ventura Research
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.5
6.5
7.5
8.5
9.5
10.5
11.5
12.5
13.5
FY10 FY11 FY12 FY13 FY14 FY15E FY16E FY17E
(%)
Yield on advances Cost of Funds NIM % (RHS)
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
Q3 FY13
Q4 FY13
Q1 FY14
Q2 FY14
Q3 FY14
Q4 FY14
Q1 FY15
Q2 FY15
Q3 FY15
(%)
Yield on advances Cost of Funds NIM %(RHS)
7.4 7.2
8.78.2
7.27.9
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
City Union
Federal LVB KVB South Indian
Karnataka
(%)
Yield on Advances Cost of Fund NIM % (RHS)
Annually (FY14)
3.3 3.2
2.7
3.1
2.7
2.4
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
City Union
Federal LVB KVB South Indian
Karnataka
(%)
Yield on Advances Cost of Fund NIM % (RHS)
Quarterly (Q3FY15)
- 13 of 23 - Tuesday 17th
March, 2015
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Cost to Income Ratio to gradually improve
LVB’s operating model has largely remained cost-driven on the back of lower
operating efficiency and CASA per branch as compared to its peers. However, the
management is confident of its more cost effective branch model where in higher
business growth will drive the core income of the bank and incentivize branches in
mobilization of CASA deposits to drive economies of scale. Hence, we expect LVB
to improve its cost to income ratio from 56% in FY14 to 49.2% by FY17E on the
back of income growth outpacing operating expense growth.
Cost to Income Ratio is slightly on higher side, expected to come down to ~49% by FY17E
Source: Lakshmi Vilas Bank, Ventura Research
Expected reduction of 650 bps as income growth outpace opex growth
Source: Lakshmi Vilas Bank, Ventura Research
0%
10%
20%
30%
40%
50%
60%
70%
FY09 FY10 FY11 FY12 FY13 FY14 FY15E FY16E FY17E
(%)
44%
46%
48%
50%
52%
54%
56%
58%
60%
62%
Q2 FY13
Q3 FY13
Q4 FY13
Q1 FY14
Q2 FY14
Q3 FY14
Q4 FY14
Q1 FY15
Q2 FY15
Q3 FY15
(%)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
City Union Federal LVB KVB South Indian
Karnataka
(%) Annually (FY14)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
City Union Federal LVB KVB South Indian
Karnataka
(%) Quarterly (Q3FY15)
- 14 of 23 - Tuesday 17th
March, 2015
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Significant increase in return ratios on the back of improved earnings
Earnings growth along with lower provisioning cost and improvement in asset quality should drive profitability. Consequently, the ROA is expected to improve to 0.7% by FY17E from the levels of 0.3% in FY14. With an improvement in ROA and adequate CAR at 13.7% (including the recent capital infusion via rights issue in Q2FY15) the ROE is expected to increase from 6.2% in FY14 to ~15.2% by FY17E.
Adequately funded for the near term growth
After the recent round of capital infusion through rights issue of Rs. 4,200 crore in
Q2FY15, the bank is adequately funded to drive the next leg of growth. LVB`s
capital adequacy ratio deteriorated significantly in FY 14 with its Tier I ratio coming
down to 7.9% as internal accruals were not adequate enough to drive advances
growth during FY12-14. Further, a low specific coverage ratio and considerable
exposure towards riskier sectors (higher NPAs) have put further pressure on its
capitalization. However, after recent round of capital infusion along with prudent
approach towards lending to risky sectors should ensure that the bank’s risk
weighted assets remain within acceptable levels. Hence, in the near term its capital
adequacy ratio should suffice to drive an 18.2% CAGR growth in advances over
FY15E-17E.
Re-rating of Bank on cards as ROE to scale up
Source: Lakshmi Vilas Bank, Ventura Research
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
0.1 0.5 0.9 1.3 1.7 2.1 2.5 2.9 3.3
Karur Vysya Bank
South Indian Bank
Karnataka BankFederal Bank
ROA (%)
RO
E (
%)
City Union Bank
Lakshmi Vilas Bank
Re-rating on the cards as ROE to scale upto 15.2% by FY17E
- 15 of 23 - Tuesday 17th
March, 2015
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Recent round of right issue in Q2FY15 has boost up the Capital Adequacy Ratio
Source: Lakshmi Vilas Bank, Ventura Research
12.0 10.8
8.9 9.2 7.9
12.6 11.3 10.7
2.8
2.4 4.2 3.2
3.0
1.1
1.2 0.9
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
FY10 FY11 FY12 FY13 FY14 FY15E FY16E FY17E
(%)
Tier I Tier II
11.0 11.3 10.5 9.0 8.2 7.9 7.6
12.2 11.8
1.2 1.0 1.5
2.3 2.5 3.0 3.1
1.2 1.1
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Q3 FY13
Q4 FY13
Q1 FY14
Q2 FY14
Q3 FY14
Q4 FY14
Q1 FY15
Q2 FY15
Q3 FY15
(%)
Tier I Tier II
LVB is lagging its regional peers in terms of capitalization
Source: Lakshmi Vilas Bank, Ventura Research
14.5 14.5
7.9
11.6 10.9 10.8
0.6 0.6
3.0
1.2 1.6 2.5
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
City Union Federal LVB KVB South Indian
Karnataka
(%)
Tier I Tier II
Annually (FY14)
11.814.0
10.413.1
10.1 9.8
3.9 0.5
3.0
0.9
1.5 2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
City Union Federal LVB KVB South Indian
Karnataka
(%)
Tier I Tier II
Quarterly (Q3FY15)
- 16 of 23 - Tuesday 17th
March, 2015
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Financial Performance
Retail & MSME led the growth in advances: LVB’s Q3FY15 advances grew
(11.8% YoY, 5.1% QoQ) supported by better growth in MSME (12.1% QoQ) and
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Disclosures and Disclaimer Ventura Securities Limited (VSL) is a SEBI registered intermediary offering broking, depository and portfolio management services to clients. VSL is member of BSE, NSE and MCX-SX. VSL is a depository participant of NSDL. VSL states that no disciplinary action whatsoever has been taken by SEBI against it in last five years except administrative warning issued in connection with technical and venial lapses observed while inspection of books of accounts and records. Ventura Commodities Limited, Ventura Guaranty Limited, Ventura Insurance Brokers Limited and Ventura Allied Services Private Limited are associates of VSL. Research Analyst (RA) involved in the preparation of this research report and VSL disclose that neither RA nor VSL nor its associates (i) have any financial interest in the company which is the subject matter of this research report (ii) holds ownership of one percent or more in the securities of subject company (iii) have any material conflict of interest at the time of publication of this research report (iv) have received any compensation from the subject company in the past twelve months (v) have managed or co-managed public offering of securities for the subject company in past twelve months (vi) have received any compensation for investment banking merchant banking or brokerage services from the subject company in the past twelve months (vii) have received any compensation for product or services from the subject company in the past twelve months (viii) have received any compensation or other benefits from the subject company or third party in connection with the research report. RA involved in the preparation of this research report discloses that he / she has not served as an officer, director or employee of the subject company. RA involved in the preparation of this research report and VSL discloses that they have not been engaged in the market making activity for the subject company. Our sales people, dealers, traders and other professionals may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein. We may have earlier issued or may issue in future reports on the companies covered herein with recommendations/ information inconsistent or different those made in this report. In reviewing this document, you should be aware that any or all of the foregoing, among other things, may give rise to or potential conflicts of interest. We may rely on information barriers, such as "Chinese Walls" to control the flow of information contained in one or more areas within us, or other areas, units, groups or affiliates of VSL. This report is for information purposes only and this document/material should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this document nor anything contained herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This document does not solicit any action based on the material contained herein. It is for the general information of the clients / prospective clients of VSL. VSL will not treat recipients as clients by virtue of their receiving this report. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of clients / prospective clients. Similarly, this document does not have regard to the specific investment objectives, financial situation/circumstances and the particular needs of any specific person who may receive this document. The securities discussed in this report may not be suitable for all investors. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. Persons who may receive this document should consider and independently evaluate whether it is suitable for his/ her/their particular circumstances and, if necessary, seek professional/financial advice. And such person shall be responsible for conducting his/her/their own investigation and analysis of the information contained or referred to in this document and of evaluating the merits and risks involved in the securities forming the subject matter of this document. The projections and forecasts described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections and forecasts were based will not materialize or will vary significantly from actual results, and such variances will likely increase over time. All projections and forecasts described in this report have been prepared solely by the authors of this report independently of the Company. These projections and forecasts were not prepared with a view toward compliance with published guidelines or generally accepted accounting principles. No independent accountants have expressed an opinion or any other form of assurance on these projections or forecasts. You should not regard the inclusion of the projections and forecasts described herein as a representation or warranty by VSL, its associates, the authors of this report or any other person that these projections or forecasts or their underlying assumptions will be achieved. For these reasons, you should only consider the projections and forecasts described in this report after carefully evaluating all of the information in this report, including the assumptions underlying such projections and forecasts. The price and value of the investments referred to in this document/material and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for future performance. Future returns are not guaranteed and a loss of original capital may occur. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice. We do not provide tax advice to our clients, and all investors are strongly advised to consult regarding any potential investment. VSL, the RA involved in the preparation of this research report and its associates accept no liabilities for any loss or damage of any kind arising out of the use of this report. This report/document has been prepared by VSL, based upon information available to the public and sources, believed to be reliable. No representation or warranty, express or implied is made that it is accurate or complete. VSL has reviewed the report and, in so far as it includes current or historical information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The opinions expressed in this document/material are subject to change without notice and have no obligation to tell you when opinions or information in this report change. This report or recommendations or information contained herein do/does not constitute or purport to constitute investment advice in publicly accessible media and should not be reproduced, transmitted or published by the recipient. The report is for the use and consumption of the recipient only. This publication may not be distributed to the public used by the public media without the express written consent of VSL. This report or any portion hereof may not be printed, sold or distributed without the written consent of VSL. This document does not constitute an offer or invitation to subscribe for or purchase or deal in any securities and neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever. This document is strictly confidential and is being furnished to you solely for your information, may not be distributed to the press or other media and may not be reproduced or redistributed to any other person. The opinions and projections expressed herein are entirely those of the author and are given as part of the normal research activity of VSL and are given as of this date and are subject to change without notice. Any opinion estimate or projection herein constitutes a view as of the date of this report and there can be no assurance that future results or events will be consistent with any such opinions, estimate or projection. This document has not been prepared by or in conjunction with or on behalf of or at the instigation of, or by arrangement with the company or any of its directors or any other person. Information in this document must not be relied upon as having been authorized or approved by the company or its directors or any other person. Any opinions and projections contained herein are entirely those of the authors. None of the company or its directors or any other person accepts any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection therewith. The information contained herein is not intended for publication or distribution or circulation in any manner whatsoever and any unauthorized reading, dissemination, distribution or copying of this communication is prohibited unless otherwise expressly authorized. Please ensure that you have read “Risk Disclosure Document for Capital Market and Derivatives Segments” as prescribed by Securities and Exchange Board of India before investing in Securities Market. Ventura Securities Limited Corporate Office: C-112/116, Bldg No. 1, Kailash Industrial Complex, Park Site, Vikhroli (W), Mumbai – 400079