Dish TV (DISHTV) - ICICI Direct

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Nov 15, 2016 ... Dish TV and Videocon D2H (Vd2h) have entered into an agreement for ... albeit at discount to Dish on EV/EBITDA basis, seem to be on the.
Event Update November 15, 2016

Dish TV (DISHTV)

Rating matrix Rating Target Target Period Potential Upside

: : : :

Hold | 90 12 months -1%

Announces merger with Videocon D2H ….

What’s changed? Target EPS FY17E EPS FY18E Rating

Key financials | Crore Net Sales EBITDA

FY15 2,773 733

FY16 3,051 1,025

FY17E 3,189 1,098

Net Profit EPS (|)

3 0.0

692 6.5

219 2.1

FY15 NM NM 14.6 NM NM NM

FY16 13.9 13.8 10.1 25.4 181.9 31.1

FY17E 44.1 43.6 9.4 16.1 36.6 30.5

Valuation summary P/E Target P/E EV / EBITDA P/BV RoNW RoCE

Dish TV and Videocon D2H (Vd2h) have entered into an agreement for amalgamation of Vd2h into Dish TV in consideration for new stock Unchanged issuance by Dish TV to the shareholders of Vd2h. Consequent to the Unchanged amalgamation, Vd2h, an India incorporated entity with ADS listed on Unchanged Nasdaq, will merge into Dish TV and the combined entity will be renamed Unchanged Dish TV Videocon Ltd. Dish TV Videocon will issue 85.78 crore (worth | 7500 crore as on November 11, closing price) fresh shares as consideration to FY18E shareholders of Vd2h wherein shareholders would get 2.02 shares in Dish 3,659 TV Videocon for every share in Vd2h. The implied valuation is at ~ 35% 1,299 premiums to Vd2h market cap (as on November 10, closing price). 346 However, on EV/EBITDA basis, valuation is at Vd2h’s annualised FY17 3.2 EV/EBITDA of 8.5x vs. Dish FY17E EV/EBITDA of 9.4x. The combined subscriber base would be 27.6 million, as of Q2FY17, largest in DTH space and the merged entity would have ~17% market FY18E share in C&S households in India. The merged entity’s proforma FY16 27.9 turnover and EBITDA stood at ~| 5916 crore & ~| 1814 crore 27.6 7.6 respectively, making it largest listed media company in India in terms of 10.2 turnover and operating profits. 36.6 40.2

Stock data Particular Market Capitalization Total Debt (FY16) Cash (FY16)

Amount (| crore) 9,651.7 1,156.4 339.2

EV 52 week H/L Equity capital Face value

10,386.9 109/ 65 106.6 1.0

Price performance Dish TV Hathway Cable

1M -11.3 2.1

3M -2.3 -0.5

| 91

6M -8.7 -14.9

12M -13.0 -32.0

Research Analysts Bhupendra Tiwary [email protected] Sneha Agarwal [email protected]

ICICI Securities Ltd | Retail Equity Research

Our view • We do believe the combined entity would benefit from cost savings resulting from synergies. For example, Vd2h has extensive distribution and service expertise, with set-top box sourcing and manufacturing advantages, while on the other hand Dish TV has been efficient in content sourcing. Consequently, we expect the merged entity to benefit from cost savings resulting from content costs (superior bargaining power), employee (scale & integration benefit), back office integration cost and lower interest cost. We believe that while the transponders of Dish and Vd2h are just five to six degrees apart, Transponder cost benefit on merged entity would be seen only over three to five years, given the operational challenges • We are also not enthused by the merged entity decision of maintaining the respective brands as it would lead to no synergy on marketing/sales costs and could also lead to delay in integration benefits • The valuations of Vd2h at ~35% premium to its market capitalisation, albeit at discount to Dish on EV/EBITDA basis, seem to be on the higher end • We highlight that Dish, in recent years, has seemed to have let go its grip on the leadership position by slipping both in terms of ARPU growth and market share in net addition. Therefore, this merger is a step in the right direction to improve its standing with superior scale play in the DTH industry with merger with ARPU efficient Vd2h. However, we also believe that integration and synergy benefits could take a couple of years to play out. We await the closure of the deal, before changing our stance on the company. We also remain wary of frequent changes in accounting practices by Dish TV and the prospect of the same getting accepted by the regulators. We, therefore, maintain our HOLD recommendation with TP of | 90.

Key highlights of transaction: •

Dish TV Videocon will issue 85.78 crore (worth | 7500 crore as on November 11 closing price) fresh shares as consideration to the Shareholders of Vd2h wherein the shareholders would get 2.02 shares in Dish TV Videocon for every share in Vd2h. Post the merger, Dish TV shareholders will have 55.4% stake while Videocon shareholders will own 44.6% of the merged entity. Dish TV promoter holding will be 36%. Videocon D2H promoters will have 28% while the remaining36% will be with the public.



Post the deal the merged entity will be the biggest listed media firm in India in terms of proforma FY16 turnover and EBITDA of ~| 5916 crore & ~| 1814 crore surpassing Zee Entertainment FY16 topline and EBITDA of | 5851 crore and | 1510 crore respectively.

Exhibit 1: Pre and post deal indicative shareholding

Source: Company, ICICIdirect.com Research

Exhibit 2: Dish Videocon combine to be largest listed media firm in terms of topline and EBITDA in India

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 2



The combined subscriber base would be 27.6 million, as of Q2FY17, largest in DTH space and the merged entity would have ~17% market share (in total cable & satellite (cable + DTH) market)

Exhibit 3: Merged entity to have 17% market share in C&S households in India

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research



Post the deal, Dish TV Videocon (merged entity) would continue to be listed on the NSE and BSE in India. As part of the Proposed Transaction, MergeCo shall institute a new GDR listing on the Luxembourg exchange. Consequently, holders of Vd2h ADRs will receive their new shares in the form of GDRs, unless they elect to receive and hold new shares directly



Post the completion of the deal, the current promoters of Dish TV shall continue as promoters of the merged entity. Furthermore, Dish TV promoters plan to acquire some of the Vd2h principals’ shares in Dish TV Videocon post the amalgamation.



Jawahar Goel, the current MD & Chairman of Dish TV, would continue to be the Chairman and MD of the merged entity. The Vd2h principals, however, shall have the right to nominate two directors on the Dish TV Videocon Board, one of whom shall be Vice Chairman and the other a Deputy Managing Director



As per the management, it would continue a multi-brand strategy (maintaining 3 brands of Zing, Dish TV & d2h, going forward



The deal is likely to be consummated by H2FY17 (post various regulatory approvals – from SEBI, MIB, High court, CCI & creditors)



Net debt for the combined entity as at September 2016 end was | 2161 crore (Dish net debt of | 625 crore and Vd2h net debt stood at | 1536 crore)

Page 3

Dish vs. Videocon D2H Exhibit 4: Dish TV vs. Videocon D2H Dish TV

Videocon D2H

FY15 2,781.6

FY16 3,059.9

H1FY17 1,557.9

FY15 2,337.7

FY16 2,855.9

Programing Cost

800.8

855.5

471.5

845.9

1,079.7

License Fees

288.8

217.5

112.3

249.0

334.3

Revenue

H1FY17 Comments 1,539.5 595.8 Dish has been efficient in terms of content cost

Selling and Distribution expenses

427.7

281.2

160.5

185.6

225.9

Administrative Expenses

118.0

153.0

69.5

68.8

70.5

124.7 36.1

Employee Expenses

101.8

122.9

74.5

102.3

120.7

63.8

Other Operating Cost

305.8

395.2

136.0

290.4

235.3

208.8

EBITDA

510.3

733.1

1,024.9

528.8

595.6

789.5

EBITDA Margin (%)

26.4

33.5

33.9

25.5

27.6

33.1 Dish enjoys a superior margins vis-à-vis Videocon

Key Metrics Net Subscribers (Mn)

12.9

14.5

15.1

10.2

11.9

12.5

ARPU (in |)

174

172

164

209

216

210 Videocon has relatively superior ARPU as Dish TV's dual brand startegy and presence of low cost Zing seemed to have led to customers resorting to downtrading of packs

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 4

Valuation We highlight that Dish, in the recent years, has seemed to have let go its grip on the leadership position by slipping both in terms of ARPU growth and market share in net addition. Therefore, this merger is a step in the right direction to improve its standing with superior scale play in the DTH industry with merger with ARPU efficient Vd2h. However, we also believe that integration and synergy benefits could take couple of years to play out. We await the closure of the deal, before changing our stance on the company. We also remain wary of frequent changes in accounting practices by Dish TV and the prospect of the same getting accepted by the regulators. We, therefore, maintain our HOLD recommendation with TP of | 90. Exhibit 5: DCF assumptions Particulars WACC Revenue CAGR over FY16E - FY22E PV of Cash Flow Till Terminal Year Terminal Growth Present Value of terminal cash flow PV of firm Less: Net Debt Total present value of the Equity (excluding current cash) Number of Equity Shares outstanding DCF - Target price (|)

Amount 12.6% 12.2% 3,758.7 3.0% 6,524.9 10,283.6 735.2 9,548.4 106.6 90

Source: Company, ICICIdirect.com Research

Exhibit 6: Valuations FY15 FY16 FY17E FY18E

Sales (| cr) 2,773.2 3,050.7 3,189.4 3,658.6

Growth (%) 28.0 10.0 4.5 14.7

EP S (|) 0.0 6.5 2.1 3.2

Growth (%) NA NA (68.4) 58.1

PE (x) NA NA 44.1 27.9

EV/EBITDA (x) 14.6 10.1 9.4 7.6

RoNW (%) NM 181.9 36.6 36.6

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 5

RoCE (%) 15.4 31.1 30.5 40.2

Recommendation History vs. consensus estimates 140

95.0

120

90.0

80

85.0

60

80.0

(%)

(|)

100

40 75.0

20 0

70.0 Nov-14

Jan-15

Mar-15 Price

Jun-15

Aug-15

Idirect target

Nov-15

Jan-16

Apr-16

Consensus Target Mean

Jun-16

Aug-16

Nov-16

% Consensus with BUY

Source: Bloomberg, Company, ICICIdirect.com Research

Key events Date Mar-11

Event Registers a very high churn of 1.94 million subscribers and records a churn rate of 2.3%

Jun-12

Sunset date for Phase I of digitisation. Dish TV able to add only 1.1 million net susbcribers

Mar-13

Sunset date for Phase II of digitisation. Dish TV able to add only 1.1 million net susbcribers

Jan-14

Dish TV starts offering all the Indiacast UTV (except ETV) channels on an a la carte basis

Mar-14

Dish TV issues disconnection notice to 10 channels distributed by IndiaCast UTV, including CNBC-TV18 and IBN7 and some ETV regional channels, claiming low popularity In a bid to provide customised local television channels to regional viewers of the state, Dish TV India rolls out a new brand Zing. The new brand will offer regional channels as the base while other segments can be added as per the needs of customers

Mar-14 Jul-14 Jan-15

Trai recommends license period extension to 20 years from 10 years, renewable for 10 years at once and license fees calulation as 8% of adjusted gross revenues vs. 10% of gross revenues paid currently Launches Zing in Tamil Nadu

Source: Company, ICICIdirect.com Research

Top 10 Shareholders No. 1 2 3 4 5 6 7 8 9 10

Shareholding Pattern

Name Essel Group Agrani Holdings Mauritius, Ltd. Baron Capital Management, Inc. Reliance Nippon Life Asset Management Limited Artisan Partners Limited Partnership Columbia Threadneedle Investments (US) Hasham Investment & Trading Co., Pvt. Ltd. Birla Sun Life Asset Management Company Ltd. Kotak Mahindra (UK) Ltd HDFC Asset Management Co., Ltd.

Latest Filing Date % O/S 31-Mar-16 59.78 31-Mar-16 3.30 31-Dec-14 1.65 30-Jun-16 1.50 31-Mar-16 1.07 31-May-16 1.07 31-Mar-16 1.00 30-Jun-16 0.98 31-Mar-16 0.77 31-May-16 0.76

Positionsition Change 637.2 0.0 35.2 0.0 17.6 7.1 15.9 0.0 11.5 4.7 11.5 0.0 10.7 0.0 10.5 0.1 8.2 8.1 8.1 6.2

(in %) Promoter FII DII Others

Sep-15 Dec-15 Mar-16 64.5 64.4 64.4 19.8 8.7 11.3 4.0 5.8 6.2 11.8 21.0 18.1

Jun-16 Sep-16 64.4 64.4 12.5 19.8 6.9 6.5 16.2 9.3

Source: Reuters, ICICIdirect.com Research

Recent Activity Buys Name Manning & Napier Advisors, LLC HDFC Asset Management Co., Ltd. Artisan Partners Limited Partnership Mirae Asset Global Investments (Hong Kong) Limited Banque Degroof Luxembourg S.A. Source: Reuters, ICICIdirect.com Research

Value +17.30M +4.86M +0.83M +0.67M +0.20M

ICICI Securities Ltd | Retail Equity Research

Shares +12.36M +3.30M +0.58M +0.43M +0.15M

Sells Name Macquarie Funds Management Hong Kong Ltd. Axis Asset Management Company Limited Tata Asset Management Limited L&T Investment Management Limited Reliance Nippon Life Asset Management Limited

Value -10.76M -6.23M -4.34M -2.17M -1.97M

Shares -7.44M -4.45M -3.00M -1.55M -1.41M

Page 6

Financial summary Profit and loss statement (Year-end March) Total operating Income Growth (%) Employee Expenses Administrative Expenses Programing Cost License Fees Commission Other Expenses Total Operating Expenditure EBITDA Growth (%) Depreciation Interest Other Income PBT Exceptional Items Prior Period Items Total Tax PAT Growth (%) EPS (|)

| Crore

Cash flow statement

FY15 2781.6 10.9 101.8 118.0 800.8 288.8 248.9 490.3 2048.5

FY16 3059.9 10.0 122.9 0.0 855.5 217.5 839.2 2035.0

FY17E 3194.2 4.4 148.1 83.4 957.3 230.0 677.3 2096.1

FY18E 3660.2 14.6 154.5 193.9 1068.3 263.4 681.2 2361.3

(Year-end March) Profit after Tax Add: Depreciation Add: Interest Paid (Inc)/dec in Current Assets Inc/(dec) in CL and Provisions Others CF from operating activities (Inc)/dec in Investments (Inc)/dec in Fixed Assets

733.1 NM 613.8 175.4 63.5 7.4 0.0 0.0 4.2 3.1 NM 0.0

1024.9 39.8 590.7 208.7 64.0 289.5 0.0 0.0 -402.9 692.4 NM 6.5

1098.1 7.1 653.8 212.6 49.0 280.6 0.0 0.0 61.8 218.8 -68.4 2.1

1298.9 18.3 709.8 132.8 60.0 516.2 0.0 0.0 170.4 345.9 58.1 3.2

Others

FY15

FY16E

FY17E

FY18E

106.6 -419.9 -313.4 1,483.9 18.3 1,188.8

106.6 274.1 380.7 1,156.4 63.5 1,600.6

106.6 491.3 597.9 956.4 63.5 1,617.8

106.6 837.2 943.8 606.4 63.5 1,613.7

CF from investing activities Issue/(Buy back) of Equity Inc/(dec) in loan funds Dividend paid & dividend tax Interest Paid Others CF from financing activities Net Cash flow Opening Cash Closing Cash

| Crore FY15 3.1 613.8 208.7 -136.9 396.0 (33.3) 1,051.5 0.0 -785.2

FY16E 692.4 590.7 212.6 60.6 361.3 (3.9) 1,913.7 -32.0 -1,059.7

FY17E 218.8 653.8 132.8 -15.6 106.3 79.8 1,176.0 -50.0 -900.0

FY18E 345.9 709.8 0.0 -69.4 359.7 132.8 1,478.8 -300.0 -800.0

-75.4

-376.8

0.0

0.0

-860.6 0.1 74.4 0.0 208.7 -388.1 -105.0 86.0 342.6 428.6

-1,468.6 0.0 -327.5 0.0 212.6 -419.7 -534.6 -89.4 428.6 339.2

-950.0 0.0 -200.0 0.0 132.8 -347.1 -414.2 -188.2 339.2 150.9

-1,100.0 0.0 -350.0 0.0 0.0 -132.8 -482.8 -104.0 150.9 46.9

FY15

FY16

FY17E

FY18E

0.0 5.8 -2.9 0.0 4.0

6.5 12.0 3.6 0.0 3.2

2.1 8.2 5.6 0.0 1.4

3.2 9.9 8.9 0.0 0.4

26.4 4.3

33.6 14.2

34.4 13.9

35.5 16.1

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

Balance sheet (Year-end March) Liabilities Equity Capital Reserve and Surplus Total Shareholders funds Total Debt Other Non Current Liabilities Total Liabilities

| Crore

Assets Gross Block

4,809.5

5,716.4

6,616.4

7,416.4

Less: Acc Depreciation Net Block Capital WIP Total Fixed Assets Net Intangible Assets Investments Inventory Debtors Loans and Advances Other Current Assets Cash Total Current Assets Creditors Provisions Total Current Liabilities Net Current Assets Other Non Current Assets Profit & Loss (Negative) Application of Funds

3,355.6 1,453.9 497.2 1,951.0 200.0 9.9 63.7 474.8 21.6 428.6 998.5 903.8 1,073.7 1,977.5 -979.0 16.7 0.0 1,188.8

3,946.3 1,770.1 650.0 2,420.1 232.0 12.6 72.5 400.1 24.3 339.2 848.5 1,106.4 1,232.4 2,338.8 -1,490.3 438.7 0.0 1,600.6

4,600.1 2,016.2 650.0 2,666.2 282.0 13.1 68.2 418.2 25.4 150.9 675.9 1,156.7 1,288.4 2,445.1 -1,769.2 438.7 0.0 1,617.8

5,309.9 2,106.5 650.0 2,756.5 582.0 15.1 70.4 479.8 29.2 46.9 641.3 1,326.9 1,478.0 2,804.8 -2,163.6 438.7 0.0 1,613.7

Key ratios (Year-end March) Per share data (|) EPS Cash EPS BV DPS Cash Per Share Operating Ratios (%) EBITDA Margin PBT / Total Operating income PAT Margin Inventory days Debtor days Creditor days Return Ratios (%) RoE RoCE RoIC Valuation Ratios (x) P/E EV / EBITDA EV / Net Sales Market Cap / Sales Price to Book Value Solvency Ratios Debt/EBITDA Debt / Equity Current Ratio Quick Ratio

0.1

22.7

6.9

9.5

1.3 8.4 16.7

1.5 8.7 27.5

1.5 7.8 27.5

1.5 7.0 27.5

NM NM NM

181.9 31.1 479.1

36.6 30.5 180.5

36.6 40.2 300.6

NM 14.6 3.9 0.0 0.0

NM 10.1 3.4 0.0 0.0

44.1 9.4 3.2 0.0 0.0

27.9 7.6 2.7 0.0 0.0

2.0 -4.7 0.3 0.3

1.1 3.0 0.2 0.2

0.9 1.6 0.2 0.2

0.5 0.6 0.2 0.2

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

.

ICICI Securities Ltd | Retail Equity Research

Page 7

ICICIdirect.com coverage universe (Media) EPS (|) P/E (x) EV/EBITDA (x) RoCE (%) CMP M Cap Sector / Company (|) TP(|) Rating (| Cr) FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E 370 455 Buy 6,795 16.1 21.3 25.2 22.9 17.4 14.7 12.8 9.4 7.9 29.9 31.8 DB Corp (DBCORP) 91 90 Hold 9,652 6.5 2.1 3.2 13.9 44.1 27.9 10.1 9.4 7.6 31.1 30.5 DISH TV (DISHTV) 705 790 Hold 3,361 21.0 15.5 22.5 33.6 45.6 31.3 21.6 21.7 15.3 14.5 12.6 ENIL (ENTNET) 167 225 Hold 1,560 22.9 22.1 28.0 7.3 7.5 6.0 4.9 6.2 4.8 14.0 12.0 Eros (EROINT) 75 80 Hold 1,743 7.2 6.6 7.3 10.4 11.4 10.3 6.6 4.6 3.6 10.7 12.3 HT Media (HTMED) 232 270 Hold 2,132 8.4 6.5 9.7 27.5 35.9 23.9 12.2 12.6 9.6 11.1 9.9 Inox Leisure (INOX) 179 220 Buy 5,853 13.6 12.5 14.7 13.2 14.3 12.2 10.2 8.4 6.7 23.9 26.7 Jagran Prakashan 1,120 1,375 Buy 5,233 25.4 24.6 32.6 44.0 45.5 34.3 16.6 14.5 11.6 15.6 14.9 PVR (PVRLIM) 489 560 Buy 19,263 23.2 27.0 31.1 21.1 18.1 15.7 10.1 9.1 7.9 36.1 39.5 Sun TV (SUNTV) 299 363 Buy 1,786 15.8 18.8 24.1 18.9 16.0 12.4 11.1 8.7 6.7 27.6 27.3 TV Today (TVTNET) 454 583 Buy 43,554 10.7 12.3 17.5 42.4 36.9 25.9 27.7 21.3 17.1 25.9 26.0 ZEE Ent. (ZEEENT) Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

RoE (%) FY18E FY16E FY17E FY18E 32.5 22.0 23.7 23.9 40.2 181.9 36.6 36.6 16.2 13.0 8.8 11.5 14.9 12.1 11.0 12.2 12.3 8.2 6.9 7.2 12.8 10.9 7.3 9.9 28.3 22.5 22.1 21.8 17.6 14.3 11.9 13.6 42.3 24.9 27.5 29.3 29.5 17.7 18.0 19.5 29.0 16.8 16.2 19.2

Page 8

RATING RATIONALE

ICICIdirect.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. Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more;

Pankaj Pandey

Head – Research

[email protected]

ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) Mumbai – 400 093 [email protected]

ICICI Securities Ltd | Retail Equity Research

Page 9

ANALYST CERTIFICATION We /I, Bhupendra Tiwary MBA, Sneha Agarwal, MBA Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about 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 specific recommendation(s) or view(s) in this report.

Terms & conditions and other disclosures: ICICI Securities Limited is a Sebi registered Research Analyst having registration no. INH000000990. ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com. ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities. While we would endeavour to update the information herein on a reasonable basis, ICICI Securitiesis is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances. This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. 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ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction. ICICI Securities or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the companies mentioned in the report in the past twelve months. ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts have any material conflict of interest at the time of publication of this report. It is confirmed that Bhupendra Tiwary MBA, Sneha Agarwal, MBA, Research Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. ICICI Securities or its subsidiaries collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report. Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in this report. It is confirmed that Bhupendra Tiwary MBA, MBA Sneha Agarwal, MBA, Research Analysts do not serve as an officer, director or employee of the companies mentioned in the report. ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report. We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities. 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 ICICI Securities and affiliates 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.

ICICI Securities Ltd | Retail Equity Research

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