FUNDAMENTAL COVERAGE - ASAHI INDIA GLASS LIMITED… · FUNDAMENTAL COVERAGE - ASAHI INDIA GLASS...

9
Price ` 340 Fair Value 430 Upside 26% Div Yield 0.29% Tenure 1 Year Sensex 34082.71 Nifty 10476.70 Group/Index M.cap (` in cr) 8265 Equity (` In cr) 24.31 Expansions 52 wk H/L ` 438.55/196.55 Face Value ` 1.00 NSE code ASAHIINDIA BSE code 515030 RONW 28% P/E 56 P/BV 15.6 EV/EBIDTA 21.69 IN ` Strategic Investment EV (`in cr) 9574.66 BV (`in cr) 21.78 NW(`in cr) 529.59 EPS (TTM) 6.10 FY 20Est. Earnings 239.49 Equity Share Capital 24.31 1.00 24.31 EPS(FY20 Est.) 9.85 Estimated P/E Ratio 51 Estimated Price/share(Discounted for 2 years ) 430 Year End 201703 201603 201503 201403 Tax Rate % 33.65 42.25 25.55 31.00 Receivable days 34 41 43 51 Source: Google Div. Payout % 19.30 17.55 - - INVESTMENT RESEARCH FUNDAMENTAL COVERAGE - ASAHI INDIA GLASS LIMITED Dated : 07 th Feb. 2018 FV VALUATION (` In Cr except per share) BUY Investment Rationale Share Holding Pattern With its backward and forward integration across the glass value chain, AIS is uniquely positioned to meet the end-to-end glass solutions requirements. Increased frequency of new model launches along with value added features augurs very well for AIS going forward. Key Valuation Ratios Operational efficiency, strong clientele, recent acquisitions & expansions, cutting edge marketing efforts - help company to perform well Strong Customer Relationships The company has strong symbiotic relationships with most of the global and local OEMs in India. There is inherent “mutual trust” in these relationships which is backed by decades of strong and reliable performance for long-term mutual benefit. Company is a preferred choice of major automotive companies including Maruti Suzuki, Hyundai Motors, Mahindra & Mahindra, Tata Motors, Toyota Kirloskar, Honda Cars India, Volkswagen India, Ford India, Skoda Auto and Fiat India. AIS announced yet another major Greenfield expansion for its 5th automotive plant in Gujarat. This Greenfield project, with investments of up to Rs. 500 crores,in 2 phases, is being set up mainly to meet the requirements of Maruti Suzuki in Gujarat. In the first phase, the plant will have capacities to produce about 1 million laminated and 1.2 million tempered glass sets. Taloja plant refurbishment is already underway and shall be operational by Q3 of FY 2017-18. This latest furnace will not only increase capacity by approx. 60% but it will have the ability to make the highest grades of glass for the architectural market directly and for value added purposes like mirroring, hard coating, soft coating and high level processing. Most importantly, it will have the capability to make the highest standards of automotive raw glass giving 100% capability to make own automotive glass and will add to the Company’s ability to cater to diverse geographical regions as well as exports. Key Financial Data Company has agreed to make a strategic investment in Timex Group Precision Engineering Ltd. (TGPEL) (a 100% Subsidiary Company of Timex Nederland B.V.) by acquiring and/ or subscribing to equity shares of TGPEL by March, 2018, to be held through a proposed joint venture company, Scopfy Components Pvt. Ltd. which is being formed along with other investors. Towards this end, the Company has entered into Share Purchase Agreement on 30th November, 2017 to acquire equity shares from the promoters and other existing shareholders. This will not only help the company in securing supply chain integrity through backward integration, but also diversify its operations. The growth in the glass industry is characterized by the increasing use of processed and high-performance glass in the automotive and architectural sectors. The Indian customer has become more aware about the importance of glass in effectively addressing the concerns of safety and energy efficiency. Stock Details B / S&P BSE 500 Corporate Governance Transparency Ratio's No. of Equity Shares 54% 46% Promoter Others Page 1 www.rudrashares.com

Transcript of FUNDAMENTAL COVERAGE - ASAHI INDIA GLASS LIMITED… · FUNDAMENTAL COVERAGE - ASAHI INDIA GLASS...

Page 1: FUNDAMENTAL COVERAGE - ASAHI INDIA GLASS LIMITED… · FUNDAMENTAL COVERAGE - ASAHI INDIA GLASS LIMITED Dated : 07 th Feb. 2018 FV VALUATION (` In Cr except per share) BUY Investment

Price ` 340

Fair Value 430

Upside 26%

Div Yield 0.29%

Tenure 1 Year

Sensex 34082.71

Nifty 10476.70

Group/Index

M.cap (` in cr) 8265

Equity (` In cr) 24.31 Expansions

52 wk H/L ` 438.55/196.55

Face Value ` 1.00

NSE code ASAHIINDIA

BSE code 515030

RONW 28%

P/E 56

P/BV 15.6

EV/EBIDTA 21.69

IN `

Strategic Investment

EV (`in cr) 9574.66

BV (`in cr) 21.78

NW(`in cr) 529.59

EPS (TTM) 6.10

FY 20Est. Earnings 239.49

Equity Share Capital 24.31

1.00

24.31

EPS(FY20 Est.) 9.85

Estimated P/E Ratio 51

Estimated Price/share(Discounted for 2 years ) 430

Year End 201703 201603 201503 201403

Tax Rate % 33.65 42.25 25.55 31.00

Receivable days 34 41 43 51

Source: Google Div. Payout % 19.30 17.55 - -

INVESTMENT RESEARCH

FUNDAMENTAL COVERAGE - ASAHI INDIA GLASS LIMITEDDated : 07 th Feb. 2018

FV

VALUATION (` In Cr except per share)

BUY Investment Rationale

Share Holding Pattern

With its backward and forward integration across the glass value chain, AIS is

uniquely positioned to meet the end-to-end glass solutions requirements. Increased

frequency of new model launches along with value added features augurs very well

for AIS going forward.

Key Valuation Ratios

Operational efficiency, strong clientele, recent acquisitions & expansions, cuttingedge marketing efforts - help company to perform wellStrong Customer RelationshipsThe company has strong symbiotic relationships with most of the global and local OEMs in India.There is inherent “mutual trust” in these relationships which is backed by decades of strong andreliable performance for long-term mutual benefit. Company is a preferred choice of majorautomotive companies including Maruti Suzuki, Hyundai Motors, Mahindra & Mahindra, TataMotors, Toyota Kirloskar, Honda Cars India, Volkswagen India, Ford India, Skoda Auto andFiat India.

AIS announced yet another major Greenfield expansion for its 5th automotive plant in Gujarat.This Greenfield project, with investments of up to Rs. 500 crores,in 2 phases, is being set upmainly to meet the requirements of Maruti Suzuki in Gujarat. In the first phase, the plant willhave capacities to produce about 1 million laminated and 1.2 million tempered glass sets. Taloja plant refurbishment is already underway and shall be operational by Q3 of FY 2017-18. This latest furnace will not only increase capacity by approx. 60% but it will have the ability tomake the highest grades of glass for the architectural market directly and for value addedpurposes like mirroring, hard coating, soft coating and high level processing. Most importantly, itwill have the capability to make the highest standards of automotive raw glass giving 100%capability to make own automotive glass and will add to the Company’s ability to cater to diversegeographical regions as well as exports.

Key Financial Data

Company has agreed to make a strategic investment in Timex Group Precision Engineering Ltd.(TGPEL) (a 100% Subsidiary Company of Timex Nederland B.V.) by acquiring and/ or subscribingto equity shares of TGPEL by March, 2018, to be held through a proposed joint venture company,Scopfy Components Pvt. Ltd. which is being formed along with other investors. Towards this end,the Company has entered into Share Purchase Agreement on 30th November, 2017 to acquireequity shares from the promoters and other existing shareholders. This will not only help thecompany in securing supply chain integrity through backward integration, but also diversifyits operations.

The growth in the glass industry is characterized by the increasing use of processed

and high-performance glass in the automotive and architectural sectors. The Indian

customer has become more aware about the importance of glass in effectively

addressing the concerns of safety and energy efficiency.

Stock Details

B / S&P BSE

500

Corporate Governance Transparency Ratio's

No. of Equity Shares

54%46%

Promoter Others

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Roadmap ahead

Auto industry

Spending powerThe sheer size of India's youth combined with shifting preferences, improving education, technology andconnectivity is going to reveal a lot of spending power in the coming decades. The Government’sinitiatives towards favorable policies and executive reforms is further driving the positivity. DirectBenefit Transfer (subsidy reforms), Financial Inclusion, Digitization, Make in India, Ujjwala Yojana,Pradhan Mantri Awas Yojana and Uday Scheme are some of the signature initiatives. The subsequentimpact will bring about a strong momentum across the economy’s key segments. GST implementationwill further boost the tax collection and supply chain efficiencies in the medium to longer term.

The Indian economy is strongly evolving and gaining a bright spot in the globallandscape. The Government’s significant progress on important economicreforms have driven strong and sustainable growth for the future. This hashelped build a momentum for positive business climate. At AIS, the promisingeconomic prospects presents a good outlook for the business. The Company isgeared up for a fast-paced growth going ahead

India to power global growth in the next three yearsIndia has increased its heft globally and now contributes as much as US in PPPdollars to world GDP growth

Consumption boomWith the world's second biggest population (1.3 billion), including 440-millionmillennials (adults) and 390-million Generation Z (teens and children bornafter 2000), India is all set to witness a consumer boom over the next twodecades

GDPGlobal GDP growth was 3.1% between 2014 and 2015. Nearly half of this could be attributed to strongeconomic activities in China and other emerging economies. India’s contribution to global growth was

equal to that of the US but lower than China. The country’s growth in 2016-17 surpassed that of the G-20 Nations. By 2020, India is expected to become the second most important economy contributing toover 40% of global growth.USD 60.10 billion FDI inflows in FY 2016-17 – marking the highest inflow ina single year since liberalization

The auto industry is expected to grow at an average of 8-10% p.a. in India as the aspirations andpurchasing power of the young consumer increases. The key remains product quality and features.

Today’s youth expects global quality standards and features, but remains fiercely cost conscious. Thechallenge will be to deliver world quality value added products to young India at Indian prices. This is atough proposition but not impossible given the scale India offers. Almost all great success stories in Indiahave the ability to find local solutions to this difficult mandate. AIS thrives on “Quality of Japan at Cost ofIndia” duality.

At a global stage, the automotive industry is facing newer challenges from autonomous driving, ridesharing apps, electric vehicles, which are bigger than the traditional challenges like light weighting,emissions, safety, and fuel economy. The new challenges have the potential to alter the landscape of theindustry forever. Glass will continue to play a leading role in the cars of future. Demand for glass isexpected to remain healthy and with the introduction of new quality standards for all architectural glassproducts backed by sensible implementation of new regulations, it is expected steep rise in demand forglass especially value added products and integrated solutions. There is definite increased awareness ofthe advantages of using high performance glass for energy savings, noise mitigation, safety & securityand aesthetics

RUDRA SHARES &

STOCK BROKERS LTD.

The country is expected to rank amongst the world’s top three growing economies and amongst the topthree manufacturing destinations by 2020 (Make in India).

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` in crores

Q2 FY 18 Q1 FY 18 Q2 FY 17626.6 602.95 611.18 3.92% 2.52%

112.33 109.85 119.73 2.26% -6.18%

17.93% 18.22% 19.59% - -

60.65 57.91 64.66 4.73% -6.20%

9.68% 9.60% 10.58% - -

38.17 38.16 37.77 0.03% 1.06%

6.09% 6.33% 6.18% - -

1.57 1.57 1.55 0.00% 1.29%

Growth Drivers

OUTLOOK

Automotive Mission Plan 2016-26

] India to be among top three automakers in the world along with China and US

] Auto Component to grow from the current levels of Rs120 billion to Rs 593.5 –732 billion

] Generate 65 million jobs (both direct and indirect) by 2026

] OEM Domestic to touch 9.32 lakh and component market to 6.62 lakh by 2026

] BSV norms to be adopted by 2019 and BSVI norms to be implemented by 2023 for passenger vehicles

The impetus and driving force gained by long-term vision and successful execution of businessstrategies has helped AIS deliver meaningful results

The automotive sector continued its positive momentum during the year with demand picking upacross all segments

Increase in purchasing powerIndia has the world's 12th largest number of high-net-worth individuals, along with a growing workingpopulation and an expanding middle-class, that will drive the demand for automobiles and real-estate in thesemi-urban and urban areas

Expansions by app-cab aggregatorsThe app-cab aggregators are expanding their operations extensively, resulting in higher demand forpassenger vehicles.

Climatic conditions India’s hot and humid climatic conditions will continue to generate demand for high performance glasses inautomobiles and building.

Government’s ambitious plansThe real estate sector will see a turnaround with increasing demand for commercial and residentialsegment driven by Government’s Smart City Projects and impetus on the Affordable Housing.

Results Snapshot

PAT

RESULTS CORNER

PBT%

EBITDA

EBITDA %

PBT

% Change

(Q-O-Q)

Qu

art

erl

y &

Ye

arl

y

Re

sult

s A

na

lysi

s Quarter Ended

Revenue

Company's standalone revenue for Q2 came in at `626.6 crores, registering 2.52% increase as compared to

corresponding quarter of the previous year of ` 611 crores.

EBITDA for the quarter rose by 2.26% to ` 112.33 crores as compared to corresponding quarter of the year.

EBITDA margin for the quarter stood at 17.93%.Company reported net profit at `38.17 crore for the quarter registering marginal increase of 1% from the

corresponding quarter of the previous year. It had posted a net profit of `37.77 crore for the corresponding

period of last fiscal.EPS for the quarter stood at ` 1.57

Indian automotive industry to grow 3.5-4 times of the current value of USD 74 billion to USD 260 -300 billion by2026

Passenger vehicles likely to increase between 9.4 -13.4 million units from the current level of 3.2 million units

]

]

RUDRA SHARES &

STOCK BROKERS LTD.

PAT %

EPS

Particulars% Change

(Y-O-Y)

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Company Overview

AIS has design and development capability to come out with continuous innovations in glass

products. This allows AIS to be uniquely placed at the highest spectrum of value addition. With astring of New Product Development and successful launches, AIS has established a range of value-added product portfolio. This internal design and development with deep market insights enablesAIS to develop new products meeting the requirements, tastes and preference of India, withinternational quality and lower costs.

RUDRA SHARES &

STOCK BROKERS LTD.

Asahi India Glass Ltd. (AIS) is an integrated glass solutions company offering a wide range of international quality

glass that finds application across multiple industries. AIS operates in three business segments namely, Automotive,

Architectural and Consumer Glass. The Company is a dominant player in the glass industry with ten manufacturing

facilities and three warehouses cum sub-assembly units. All the locations are at globally optimal scale which enables

them to harness costs and other efficiencies. It is a preferred supplier to leading automotive OEMs and construction

companies in the Automotive and Architectural Glass segments.

Valuation Conclusion

There has been a positive momentum across the key growth sectors of the Indian economy combined withmoderate inflation, lower oil prices and reduced fiscal deficit. Demonetization did have a temporary slowdownand dent in growth sentiments, With GST implementation, a complete transparency in the taxation system canbe expected leading to a better business environment.

Estimating the share price of the company as per P/E valuation

We recommend to BUY this script for the target of ` 430 for next one year.

The strong performance is an indication of the accelerated turnaround that the Company has

been witnessing over the past 3 years. Moreover, Operational efficiency, strong clientele (JV

with Maruti Suzuki), recent acquisitions & expansions, strategic investments, cutting edge

marketing efforts & on the other end various growth drivers like increase in purchasing power

& the spending power of the people with government initiatives bodes well & would help

company to perform going forward.

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LTM 201709 201706 201703 201612

2407.10 626.60 602.95 597.05 580.49

441.50 112.33 109.85 120.57 98.73

96.70 20.77 22.03 25.34 28.59

344.80 91.56 87.82 95.23 70.14

14.70 5.26 1.63 6.51 1.27

130.10 30.91 29.91 34.71 34.59

214.60 60.65 57.91 60.52 35.55

66.10 22.48 19.75 9.29 14.57

148.50 38.17 38.16 51.23 20.98

(0.90) - - (0.17) (0.72)

149.40 38.17 38.16 51.40 21.70

6.10 1.57 1.57 2.11 0.86

Particulars 201403 201503 201603 201703 2018E 2019E 2020E

Sales 2138.14 2096.58 2207.37 2372.99 2573.26 2797.56 3064.36

Other operating Income 2.70 2.81 4.35 20.07 7.25 8.05 9.17

Total Inc. from operations 2140.84 2099.39 2211.72 2393.06 2580.51 2805.61 3073.53

Operating EBITA 87.29 194.00 283.34 321.98 355.46 399.22 454.16

Total Inc. from operations 2140.84 2099.39 2211.72 2393.06 2580.51 2805.61 3073.53

TOTAL EXPENDITURE 1910.66 1793.54 1818.76 1962.43 2112.15 2289.38 2498.78

EBITDA 230.18 305.85 392.96 430.63 468.36 516.23 574.75

Depreciation (142.89) (111.85) (109.62) (108.65) (112.90) (117.01) (120.59)

Goodwill amortization - - - - - - -

OTHER INCOME 3.70 16.74 2.64 9.50 12.56 14.87 18.91

Net financials

Interest income - - - - - - -

Interest expenses (162.98) (159.55) (143.92) (139.29) (116.08) (109.95) (104.40)

Net Financial Items (162.98) (159.55) (143.92) (139.29) (116.08) (109.95) (104.40)

Reported Pre-tax profit (71.99) 51.19 142.06 192.19 251.94 304.14 368.67

Reported Tax charge 22.32 (13.08) (60.02) (64.67) (88.18) (106.45) (129.04)

Reported Net profit (49.67) 38.11 82.04 127.52 163.76 197.69 239.64

Minorities (1.61) (1.90) (2.31) 0.15 0.15 0.15 0.15

P/L OF ASSOCIATE CO. 1.28 2.01 2.60 3.96 - - -

(46.78) 42.02 86.95 131.33 163.61 197.54 239.49

Extra Ordinary income - (2.62) (1.18) (1.05) - - -

Dividend Paid - - (24.31) (24.31) (24.38) (24.30) (24.43)

Retained earnings (46.78) 44.64 63.82 108.07 139.23 173.24 215.06

Reported EPS (1.92) 1.84 3.63 5.45 6.73 8.13 9.85DPS - originally declared - - 1 1 1 1 1

Opening Balance 24.31 24.31 24.31 24.31 24.31 24.31 24.31

Bought Back - - - - - - -

Closing Balance 24.31 24.31 24.31 24.31 24.31 24.31 24.31

FV 1.00 1.00 1.00 1.00 1.00 1.00 1.00

Wtd. Avg. no. of shares 24.31 24.31 24.31 24.31 24.31 24.31 24.31

Note:- The figures shown in the brackets means NEGATIVE.

473.08

Rep. NP after min. Int.

Rep.Net Income after

extra ordinary items(46.78)

RUDRA SHARES &

STOCK BROKERS LTD.

Op Income

EBITDA

Misc.Inc (Exp.)

355.46

194.00

Rep. profit before othrinc.,

fin.cost,tax & excp. Item

Rep. profit before othrinc.,

fin.cost,tax & excp. Item

EPS and Dividend

163.61 197.54 239.49

414.09Profit from ordinary act. Before

Fin.Cost ,TAX & Exp.Items 90.99

321.98

EPS

Income Statement and Estimates ( ` in Cr except per share)

87.29

368.02

87.29 283.34 399.22

Number Of Shares

331.48285.98210.74

132.3888.1344.64

454.16 399.22 355.46

321.98

Profit & Loss

454.16

Interest Exp

Net Inc(Reg)

Rep Net Inc

Quarterly Results (` in cr except per share)

194.00

283.34

Depreciation

Particulars

Taxes

Extraord. Items

Net Sales

EBT

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201403 201503 201603 201703 2018E 2019E 2020E

Equity & Liabilities

Shareholders' Fund

Share Capital 24.31 24.31 24.31 24.31 24.31 24.31 24.31

Reserves and Surplus 217.06 256.94 329.74 436.61 575.84 749.09 964.15

(3.62) (5.52) (7.83) (7.66) (7.51) (7.36) (7.21)

Total Shareholders' Fund 237.75 275.73 346.22 453.26 592.64 766.04 981.25

Non-Current Liabilities

Long-term Borrowings 409.80 811.04 671.79 781.90 769.69 760.21 748.25

Other LT Liabilities 15.66 198.48 208.81 205.67 198.63 194.77 192.47

Deferred Tax Liability 0.00 0.00 (50.14) 7.40 8.33 9.37 10.54

Long term Provisions 0.34 0.40 0.72 0.88 0.97 1.06 1.17

Total Non-Current Liab. 425.80 1009.92 831.18 995.85 977.62 965.41 952.42

Current Liabilities

Short term Borrowings 697.46 317.54 381.05 266.47 227.36 198.74 161.25

Trade Payables 487.49 285.66 289.11 372.72 394.82 432.06 476.40

Other current liability 454.51 355.62 339.16 276.75 258.05 232.87 215.15

Short term Provisions 10.37 15.99 34.69 36.69 40.36 44.39 48.83

Total current Liab. 1649.83 974.81 1044.01 952.63 920.59 908.06 901.63

Total Equity & Liab. 2313.38 2260.46 2221.41 2401.74 2490.85 2639.51 2835.30

Assets

Non-Current Assets

Fixed Assets

Tangible fixed Assets 1220.56 1184.10 1198.92 1281.05 1334.59 1383.11 1425.42

G/W On Consolidation - - - - - - -

Non-current Investment 14.30 16.40 19.13 23.40 26.96 31.05 37.27

Long term L&A 43.46 57.72 90.65 142.10 101.98 114.73 126.20

Other Non current Ass. - - - - - - -

Deferred tax receiv. 114.38 103.89 - - - - -

Total Non-Current Ass. 1392.70 1362.11 1308.70 1446.55 1463.53 1528.89 1588.89

Current Assets

Current Investments - - - - - - -

Inventories 490.39 513.44 518.87 583.75 634.81 695.79 777.60

Trade Receivables 332.00 267.29 266.06 241.34 270.95 308.62 362.68

Cash & cash Equi. 27.53 31.72 38.40 15.86 26.13 44.60 52.97

Short Term L&A 70.26 85.30 88.89 113.75 94.90 61.00 52.60

Other current Assets 0.50 0.60 0.49 0.49 0.52 0.56 0.61

Total current Assets 920.68 898.35 912.71 955.19 1027.31 1110.57 1246.46

Total Assets 2313.38 2260.46 2221.41 2401.74 2490.84 2639.47 2835.35

Cash & cash equivalents 27.53 31.72 38.40 15.86 26.13 44.60 52.97

Other int. bearing assets 14.30 16.40 19.13 23.40 26.96 31.05 37.27

Interest-bearing debt 1561.77 1484.20 1392.00 1325.12 1255.10 1191.82 1124.65

Net interest-bearing debt 1519.94 1436.08 1334.47 1285.86 1202.01 1116.16 1034.42

Net gearing (%) 639.30% 520.83% 385.44% 283.69% 202.82% 145.71% 105.42%

Tangible assets

Gross capex (93.82) (83.84) (125.53) (199.91) (166.44) (165.53) (162.90)

Sale of fixed assets 0.60 12.54 0.36 14.10 - - -

Net capex (93.22) (71.30) (125.17) (185.81) (166.44) (165.53) (162.90)

Depreciation tangibles (142.89) (111.85) (109.62) (108.65) (112.90) (117.01) (120.59)

Note:- The figures shown in the brackets means NEGATIVE.

Minority Interests

Investments

BALANCE SHEET

Particulars

RUDRA SHARES &

STOCK BROKERS LTD.

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201403 201503 201603 201703 2018E 2019E 2020E

Return on assets - 1.95% 3.93% 5.73% 6.69% 7.70% 8.75%

Return on equity - 17.39% 28.34% 33.12% 31.29% 29.08% 27.41%

ROCE - 11.46% 13.17% 14.46% 14.24% 15.22% 16.27%

EBIT Margin - 10.04% 12.93% 13.85% 14.26% 14.76% 15.39%

Pre tax margin - 2.44% 6.42% 8.03% 9.76% 10.84% 12.00%

Net Profit Margin - 2.13% 3.98% 5.53% 6.34% 7.04% 7.79%

Total asset turnover - 0.92 0.99 1.04 1.05 1.09 1.12

Fixed asset turnover - 1.75 1.86 1.93 1.97 2.06 2.19

Equity turnover - 8.18 7.11 5.99 4.93 4.13 3.52

Current Ratio - 0.92 0.87 1.00 1.12 1.22 1.38

Quick Ratio - 0.39 0.38 0.39 0.43 0.46 0.52

Cash Ratio - 0.03 0.04 0.02 0.03 0.05 0.06

Receivable Days - 52.10 44.01 38.70 36.23 37.70 39.86

Inventory Days - 87.26 85.18 84.09 86.18 86.55 87.49

Payable Days - 77.67 57.50 59.58 64.75 64.21 64.25

Conversion Cycle (Days) - 61.69 71.69 63.21 57.66 60.05 63.10

Financial Leverage Effect - 6.85 4.46 3.25 2.86 2.61 2.40

Debt to Capital - 0.84 0.80 0.75 0.68 0.61 0.53

Debt to Equity - 5.38 4.02 2.92 2.12 1.56 1.15

Note:- The figures shown in the brackets means NEGATIVE.

RUDRA SHARES &

STOCK BROKERS LTD.

RATIO ANALYSIS

Particulars

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Disclosures :

1) Business Activity :

2)

3)

4)

Sr. No. Yes/No

a) No

b) No

c) No

5)

Sr. No. Yes/No

a) No

b) No

c) No

6) Other Disclosures:

Yes/No

Sr. No.

a) No

b) No

c) No

RUDRA SHARES &

STOCK BROKERS LTD.

There has been no instance of any Disciplinary action, penalty etc. levied/passed by any regulation/administrative

agencies against RUDRA and its Directors. Pursuant to SEBI inspection of books and records of Rudra, as a Stock

Broker, SEBI has not issued any Administrative warning to Rudra.

Disclosures

Rudra or its associates have received any compensation from the subject company in the

past twelve months.

Disciplinary History :

Disclosures with regard to receipt of compensation :

The Research report is issued to the registered clients. The Research Report is based on the facts, figures and

information that are considered true, correct and reliable. The information is obtained from publicly available media

or other sources believed to be reliable. The report is prepared solely for informational purpose and does not

constitute an offer document or solicitation to buy or sell or subscribe for securities or other financial instruments

for clients.

Rudra or its research analysts, or his/her relative or associate has any direct or indirect

financial interest in the subject company.

Rudra Shares & Stock Brokers Limited is engaged in the business of providing broking services & distribution of

various financial products. RUDRA is also registered as a Research Analyst under SEBI(Research Analyst)

Regulations, 2014. SEBI Reg. No. INH100002524.

Disclosures & Disclaimers

Terms & Conditions of issuance of Research Report:

Disclosures with regard to ownership and material conflicts of interest :

Rudra or its research analysts, or his/her relative or associate has any other material

conflict of interest at time of publication of the research report.

Disclosures

Rudra or its research analysts, or his/her relative or associates have actual/beneficial

ownership of one per cent or more securities of the subject company.

Disclosures

The research analyst has served as an officer,director,employee of the subject company.

Rudra or its research analyst has been engaged in market making activity for the subject

company.

Rudra or its or associates have received any compensation from the subject company in the

past twelve months.

Rudra or its associates have received any compensation or other benefits from the subject

company or third party in connection with the research report .

Rudra or its associates have managed or co-managed public offering of securities for the

subject in the past twelve months.

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RUDRA SHARES & STOCK BROKERS LTD.

Phone: +91 – 512 – 67011001

RUDRA SHARES &

STOCK BROKERS LTD.

Disclaimers:

This Research Report (hereinafter called report) has been prepared and presented by RUDRA SHARES & STOCK BROKERS

LIMITED, which does not constitute any offer or advice to sell or does solicitation to buy any securities. The information presented in

this report, are for the intended recipients only. Further, the intended recipients are advised to exercise restraint in placing any

dependence on this report, as the sender, Rudra Shares & Stock Brokers Limited, neither guarantees the accuracy of any information

contained herein nor assumes any responsibility in relation to losses arising from the errors of fact, opinion or the dependence

placed on the same.

Despite the information in this document has been previewed on the basis of publicly available information, internal data , personal

views of the research analyst(s)and other reliable sources, believed to be true, we do not represent it as accurate, complete or

exhaustive. It should not be relied on as such, as this document is for general guidance only. Besides this, the research analyst(s) are

bound by stringent internal regulations and legal and statutory requirements of the Securities and Exchange Board of India( SEBI)

and the analysts' compensation was, is, or will be not directly or indirectly related with the other companies and/or entities of Rudra

Shares & Stock Brokers Ltd and have no bearing whatsoever on any recommendation, that they have given in the research report.

Rudra Shares & Stock Brokers Ltd or any of its affiliates/group companies shall not be in any way responsible for any such loss or

damage that may arise to any person from any inadvertent error in the information contained in this report. Rudra Shares & Stock

Brokers Ltd has not independently verified all the information, which has been obtained by the company for analysis purpose, from

publicly available media or other sources believed to be reliable. Accordingly, we neither testify nor make any representation or

warranty, express or implied, of the accuracy, contents or data contained within this document. Rudra Share & Stock Brokers Ltd

and its affiliates are engaged in investment advisory, stock broking, retail & HNI and other financial services. Details of affiliates are

available on our website i.e. www.rudrashares.com.

We hereby declare, that the information herein may change any time due to the volatile market conditions, therefore, it is advised to

use own discretion and judgment while entering into any transactions, whatsoever.

Individuals employed as research analyst by Rudra Shares & Stock Brokers Ltd or their associates are not allowed to deal or trade in

securities, within thirty days before and five days after the publication of a research report as prescribed under SEBI Research

Analyst Regulations.

Subject to the restrictions mentioned in above paragraph, we and our affiliates, officers, directors, employees and their relative may:

(a) from time to time, have long or short positions acting as a principal in, and buy or sell the securities or derivatives thereof, of

Company mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or profits.

Page 9 www.rudrashares.com