Gladiator Stocks – Agri Input/Rural Consumption Thematic

Scrip I-Direct Code Action Target Stoploss UpsideHero MotoCorp HERHON Buy in the range of 3350-3410 3830.00 3150.00 13%Rallis India RALIND Buy in the range of 240-246 295.00 215.00 21%Time Frame: 6 Months

Research AnalystsDharmesh Shah dharmesh.shah@icicisecurities.com Pabitro Mukherjee pabitro.mukherjee@icicisecurities.comNitin Kunte CMT nitin kunte@icicisecurities com Vinayak Parmar vinayak parmar@icicisecurities comNitin Kunte, CMT nitin.kunte@icicisecurities.com Vinayak Parmar vinayak.parmar@icicisecurities.comDipesh Dagha dipesh.dagha@icicisecurities.com

May 11, 2017

Deal Team – At Your ServiceAgri input thematic: Budget allocation, monsoon forecast augur well...

In the backdrop of below normal monsoon forecasts i.e. 95% of long period average (LPA) made theprivate weather monitoring agency Skymet earlier in the year, the Indian Meteorological Department(IMD) overturned the ambiguity with near normal monsoon forecast (96% of LPA) for the upcomingmonsoon season 2017 According to senior officials at the IMD although there does exist neutral El Niñomonsoon season 2017. According to senior officials at the IMD, although there does exist neutral El Niñoconditions (30% probability) in the Pacific Ocean, positive dipole movement in the Indian Ocean isexpected to counter the Pacific move and result in normal rainfall in the upcoming monsoon season.Moreover, the spatial distribution of rainfall is expected to be healthy and widespread thereby benefitingthe whole of the Indian subcontinent Normal monsoons are significant more so domestically as 55%the whole of the Indian subcontinent. Normal monsoons are significant, more so domestically, as ~55%of the Indian population is still dependent on agriculture for livelihood amid ~45% irrigation penetrationpan-India. The monsoon forecast at 96% with an error of +-5% is comfortably ahead of the muted rainfallreceived in 2014 & 2015 wherein rainfall deficiency was to the tune of 12% (88% of LPA) & 14% (86% of

) f fLPA), respectively. This is likely to result in robust farm production and consequent increase in farmincome, which will boost rural demand, thereby benefiting sectors like farm mechanisation (tractors,tillers, pumps), agri input (fertiliser, seeds, agro chemicals), FMCG and consumer durables, amongothers.

In this edition of our agri input/ rural consumption thematic series, we are looking at Hero MotoCorp andRallis India.

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Hero MotoCorp (HERHON): Breakout from a major consolidation...

CMP | 3410 00 B i R | 3350 3410 T t | 3830 00 St l | 3150 00 U id 13%

Technical ViewHero MotoCorp is an Indian motorcycle and scooter manufacturer based out of New Delhi. The company is the largesttwo-wheeler manufacturer in India where it has a market share of about 46% in the two-wheeler category. The shareprice of Hero MotoCorp has been consolidating in the broad range of | 3400 and | 2900 for the last seven months

hil it b b d l f ti fl d h tl i t d b k t b th lid ti

Stock Data

CMP: | 3410.00 Buying Range: | 3350-3410 Target: | 3830.00 Stop loss: | 3150.00 Upside: 13%

52 Week High / Low 3740/2849.550 days EMA 3258

200 days EMA 3143while it absorbed a slew of negative news flow and has recently registered a breakout above the consolidation rangethus providing fresh entry opportunity for medium term investor to ride the next up move in the stock

Resolving past demonetisation high signals resumption of uptrendThe sharp decline post demonetisation of higher denomination currency notes saw the stock approach its long termvalue area placed around | 2850 region as it is the value of long term rising trend line drawn by joining major higherbottoms formed in 2013, 2015 and 2016, which also coincided with the 61.8% Fibonacci retracement of the entire2016 up move (| 2377 to | 3740) around 2900 region. After absorbing the major note ban blow the stock gradually

*Recommendation given on i-click to gain on May 11,2017 at 10:14 hrs

y

52 Week EMA 3116

Face Value (|) 2Market Capitallisation (| Cr.) 67723

2016 up move (| 2377 to | 3740) around 2900 region. After absorbing the major note ban blow the stock graduallyresumed up move by forming higher high higher low on weekly scale while moving close to the long term risingdemand line. The stock tested its pre-note ban high of | 3386 in March 2017 before once again losing groundfollowing the ban on sales of BS III vehicles. The stock did well to absorb the blow from ban on sales of BS III vehiclesas it took support at its rising 52 week moving average and long term demand line then placed around |3160 region.The stock maintained a higher high higher low on a weekly scale highlighting persistent demand at elevated levels.

In the current week, after the initial knew jerk reaction to quarterly results, the stock has again strengthened above itspre note ban high of | 3386 highlighting strong resilience and resulted in a breakout from the seven month corrective

Stock price vs. BSE Sensex

25 00026,00027,00028,00029,00030,00031,000

3,000

3,200

3,400

3,600

pre-note ban high of | 3386 highlighting strong resilience and resulted in a breakout from the seven month correctivephase prevalent since November 2016. We believe the stock has concluded a healthy corrective phase and is set toresume its primary uptrend. Going forward, we expect the 52 week EMA and the long term rising trend line currentplaced around | 3160 region to act as a strong base for the stock.

Momentum oscillator provide early signs of turnaroundAmong oscillators, the weekly MACD (E-12/26/9) is in a rising trend forming a higher high and higher low and is seensustaining above its nine period average It has recently ventured into positive territory signalling strength in the price

Price performance in last five years

24,00025,000

2,800

May

-16

Jun-

16Ju

l-16

Aug-

16Se

p-16

Oct-1

6No

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Hero Motocorp BSE Sensex

sustaining above its nine period average. It has recently ventured into positive territory signalling strength in the pricetrend and supports continuance of the upward momentum from a medium term perspective

ConclusionBased on the aforementioned technical observations, we believe the stock is attractively poised after concluding asecondary corrective phase and provides good entry opportunity from a medium term perspective. The measuringimplication of the seven months consolidation range (| 3386 to | 2900) added to the breakout point of | 3386 projectsupsides towards | 3870 region over the medium term.

0%9%

50%

-13%13%

-40%

60%

2012 2013 2014 2015 2016

Year

Source: Bloomberg, BSE, ICICIdirect.com Research

3

2012 2013 2014 2015 2016

Hero MotoCorp : Weekly Bar Chart

Measuring implication ofMeasuring implication ofrange breakout @ 3870

3386

3740Breakout from a consolidation signals resumption of up moveand offers fresh entry opportunity

2900

Base of the consolidation at the 52 weeksEMA and the long term trendline supportjoining lows since 2013

52 week EMA

Weekly MACD rising trend forming a higher high and higher low and has recently venturedinto positive territory signalling strength in the price trend

Source: Bloomberg, ICICIdirect.com Research

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Stock Data

Hero MotoCorp (HERHON): Fundamental view

Fundamental ViewStock Data Fundamental ViewMacroeconomic factors to drive growthThe two wheeler (2-W) industry witnessed a recovery in H1FY17 with domestic volumes up 17% YoY (HMCLdomestic volume growth 17%), primarily on account of the low base effect. Hero MotoCorp (HMCL) was expectinga better performance in H2FY17 vs. H1FY17 but demonetisation impacted its overall volumes. For H2FY17, HMCL’soverall volumes declined 9.3% YoY, thereby resulting in flattish growth for FY17. We believe the negative impact ofdemonetisation has largely faded away, in addition to the positive macro factors (expectation of normal monsoon,positive impact of Seventh Pay Commission and upcoming marriage season) is likely to drive 2 W demand going

Particular AmountMarket Capitalization (| Crore) |69156.1 CroreTotal Debt (FY17) (| Crore) |0croreCash & Investments (FY16) (| Crore) |4677.6CroreEV (| Crore) |64478.5crore52 week H/L (|) 3484 / 3295 positive impact of Seventh Pay Commission and upcoming marriage season) is likely to drive 2-W demand, going

forward, and is likely to benefit market leader HMCL, which enjoys a sizeable share of 37% as of FY17. We believeHMCL will also benefit from a rural demand recovery (supported by normal monsoon), as the company derives~45% of its volumes from rural areas. The management expects higher single digit volume growth for the 2-Windustry and expects HMCL to outpace industry growth in FY18E. Thus, we expect HMCL’s 2-W volumes to grow ata CAGR of 10.5% in FY7-19E, respectively.Key Metrics

52 week H/L (|) 3484 / 3295Equity capital (| crore) 39.9Face value (|) | 2

FY16 FY17E FY18E FY19EP/E ( ) 22 1 20 5 17 4 14 9 Product in place to capture up-trading trend

In FY17, the company introduced three new motorcycles – Splendor iSmart i10; Achiever and Glamour. The newproducts introduced in March 2017 (Glamour, new Maestro Edge, Duet etc) are likely to contribute meaningfully &supplement its growth in FY18E. Apart from that, the company is expected to launch six new products in FY18E.Despite increasing competitive intensity in the executive segment, HMCL has maintained its dominant share in thesub-segment. Success in the executive category is critical for any player to sustain or increase market share, giventhat it accounts for ~60% of motorcycle market & is dominated by HMCL with market share of ~66% in FY17. With

P/E (x) 22.1 20.5 17.4 14.9 Target P/E (x) 25.2 23.4 19.8 17.0 EV/EBITDA (x) 14.8 13.9 11.6 9.8 P/BV (x) 8.7 6.8 6.3 5.2 RoNW (%) 39.4 33.0 36.3 35.3 RoCE (%) 53.6 43.5 49.0 47.9

Glamour (fastest growing in the 125 cc category) in its armour, the company is well positioned to capture thegeneral trend of transition from lower 100-110 cc motorcycles to 125 cc variants.

Favourable factors to drive earnings growthThe long term structural drivers continue to exist in the form of government’s focus on doubling farm income,reducing replacement cycles and low finance penetration thereby driving the overall 2-W space. We believe HMCLbeing the market leader is well placed to capture this growth opportunity going forward Thus we expect earnings

Financial Highlights

| Crore FY16 FY17E FY18E FY19ENet Sales 28,599 28,475 33,486 38,789 EBITDA 4,447.0 4,634.8 5,526.7 6,413.9 Net Profit 3,132.4 3,377.1 3,985.1 4,648.4 being the market leader is well placed to capture this growth opportunity going forward. Thus, we expect earnings

to grow at 17% CAGR in FY17-19E, on the back of an improving demand scenario, strong margins owing to LEAP &operating leverage benefits. Hence, we remain positive on the stock from a long term perspective.Source: Company, ICICIdriect.com Research

EPS (|) 156.9 169.1 199.6 232.8

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Rallis India (RALIND):Bullish Cup and Handle pattern breakout...

CMP | 246 00 B i R | 240 246 T t | 295 00 St l | 215 00 U id 21%

Technical ViewRallis India is a market leader in the crop protection (agro-chemical i.e. pesticides) segment domestically. Under thecrop protection segment, it manufactures and markets insecticides, herbicides & fungicides. The share price of RallisIndia remains in a strong uptrend forming rising peaks and troughs on the long term charts. It generated superior

t f l t i t i t t b i th t Withi th t t l t d th t k

Stock Data

CMP: | 246.00 Buying Range: | 240-246 Target: | 295.00 Stop loss: | 215.00 Upside: 21%

52 Week High / Low 265.25/180.450 days EMA 242

200 days EMA 225 returns for long term investors on a consistent basis over the past many years. Within the structural uptrend, the stockhas witnessed periodic secondary corrections that have provided fresh entry opportunities. Recent developments onthe price front suggest that the stock has concluded an elongated corrective phase and is poised to embark upon itsnext major up move thereby providing a fresh entry opportunity to medium term investorsCup and Handle pattern breakout triggers bullish turnaroundThe stock entered a secondary corrective phase after hitting a high of | 289 in March 2015. The entire corrective priceaction over the past two years took the pictorial form of a well defined Cup & Handle pattern as highlighted in the

*Recommendation given on i-click to gain on May 11,2017 at 10:15 hrs

00 d ys 5

52 Week EMA 224

Face Value (|) 1Market Capitallisation (| Cr.) 4794

adjoining chart. A Cup & Handle formation is a bullish continuation price pattern having positive implication on theprice front upon resolution above the neckline of the pattern.The stock had registered a strong volume led breakout from 24 month bullish cup & handle pattern above | 230 inearly February 2017. After the strong breakout rally from | 188 to | 254 in just two months, the stock entered asideways consolidation mode and oscillated between the broad range of | 265 and | 235 in the last 14 weeks. Theentire consolidation over the last 14 weeks occurred above the breakout level of | 230 highlighting the change ofpolarity principle as per which a significant resistance once taken out reverses its role and acts as support for future

Stock price vs. BSE 500

10 50011,00011,50012,00012,50013,00013,500

190

210

230

250

price movement. We believe the 14 weeks consolidation above the previous breakout area has laid the platform forthe next up moveTime wise behaviour quantifies robust price structureThe sharp rebound from the December 2016 low of | 188 has seen the stock completely retraced its preceding 10weeks fall (| 242 to | 188) in almost 50% of the time ( five weeks), thus confirming a faster retracement. Fasterretracement of the last major falling segment confirms the bullish turnaround in price structure.Momentum oscillator confirms inherent strength in trend

Price performance in last five years

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170

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ay-1

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Rallis India BSE 500

Momentum oscillator confirms inherent strength in trend...Among oscillators, the weekly 14 period’s RSI during the last three months consolidation has worked off theoverbought condition developed after the sharp rally of January- February 2017 and is seen rebounding from a trendline support of its own signalling strength in the price trend and augurs well for continuance of the uptrendConclusionBased on the aforementioned technical observations, we believe the stock has concluded a healthy corrective phaseand is set to embark on a sustained up move. We expect the share price to head towards | 295 over the medium term

27%20%

28%

-17%8%

-50%

50%

2012 2013 2014 2015 2016

Year

being the price parity with the previous up move from | 206 to | 266 (266-206=60 points) added to the recent troughof | 235 (235+ 60=295) project upside towards | 295 levels in the medium term

Source: Bloomberg, BSE, ICICIdirect.com Research

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2012 2013 2014 2015 2016

Rallis India: Weekly Bar Chart

Price parity with previous

Consolidation above the 24 months bullish Cup & Handle breakout areasuggests accumulation and thus offers fresh entry opportunity

266

242

p y pup move @ 295

Neckline @ 230

206

235

242

142Strong volume at the breakout rally signals largerparticipation in the direction of trend

188

Weekly 14 period’s RSI rebounding from a trendline support of its own thusvalidates positive bias in the price

Source: Bloomberg, ICICIdirect.com Research

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Stock Data

Rallis India : Fundamental view

Fundamental ViewStock Data Fundamental ViewPresence across value chain; Metahelix feather in the capRallis is present across the agricultural value chain ranging from hybrid seeds (through its subsidiary Metahelix) toplant growth nutrients to organic manure & soil conditioners (through its subsidiary Zero Waste Agro Organics) tocrop protection (agro chemicals). On a consolidated basis, the company has clocked revenues of | 1659 crore inFY17. Under the crop protection segment, it manufactures and markets insecticides, herbicides & fungicides. Withmanufacturing facilities spread across four geographic locations domestically, the company has a capacity of 10,000tonne of technical grade pesticides and 30 000 tonne/litre of formulations per annum Rallis has a strong

Particular AmountMarket Capitalization | 4863 croreTotal Debt (FY17) | 52 croreCash and Investments (FY17) | 236 croreEV | 4678 crore52 week H/L 265 / 180 tonne of technical grade pesticides and ~30,000 tonne/litre of formulations per annum. Rallis has a strong

distribution network with ~2300 dealers and 40,000 retailers, thereby covering ~80% of Indian districts. Thecompany has got transformed from only an insecticide player to a total agro service solution provider.

IMD predicts normal monsoon at 96% of LPA; Rallis India to benefitIn the backdrop of below normal monsoon forecasts i.e. 95% of long period average (LPA) made by private weathermonitoring agency Skymet earlier in the year, the Indian Meteorological Department (IMD) cleared up the ambiguitywith near normal monsoon forecast (96% of LPA) for upcoming monsoon season 2017. According to senior officials

Key Metrics

FY16 FY17 FY18E FY19E

52 week H/L 265 / 180Equity capital | 19.5 croreFace value | 1

( ) p g gat the IMD, although there does exist neutral El Niño conditions (30% probability) in the Pacific Ocean, a positivedipole movement in the Indian Ocean is expected to counter the Pacific move and result in normal rainfall inmonsoon 2017. Moreover, the spatial distribution of rainfall is expected to be healthy and widespread therebybenefiting the whole of the Indian subcontinent. This is likely to result in robust farm production and consequentincrease in farm income, which will boost rural demand, thereby benefiting Rallis India.

Farmer centric Budget 2017-18; focused to double farm income by 2022f f

P/E 33.9 28.1 24.7 20.9 Target P/E 40.7 19.6 29.6 25.0 EV / EBITDA 21.5 17.8 15.0 12.9 P/BV 5.5 4.4 4.0 3.6 RoNW (%) 16.1 15.6 16.2 17.4 RoCE (%) 20.4 19.7 22.5 23.8

Union Budget 2017-18 delivered on its expectations with a clear focus on achieving its vision to double farm incomeby 2022. Due emphasis was given to both productivity and farm realisations. Total allocation towards agriculture &farmer welfare was increased 16% YoY to | 41,855 crore in FY18E. Notably, a sizable increase in allocation to theinsurance scheme to | 9000 crore (up 64% YoY) and irrigation scheme (PMKSY) to | 7377 crore (up 28% YoY) wasencouraging. Moreover, the government increased allocation towards subsidy under farm mechanisation to | 525crore in FY18E (vs. | 358 crore in FY17E). Furthermore, agricultural credit in 2017-18 was fixed at record levels of |10 lakh crore (up 11% YoY). This will boost farm productivity & consequent farm income thereby benefiting all agri-i t i i l di R lli I di

Financial Highlights

| Crore FY16 FY17 FY18E FY19ENet Sales 1,520.8 1,659.3 1,853.0 2,024.5 EBITDA 229.0 263.4 312.0 353.3 PAT 143 3 180 1 196 9 233 0 input companies, including Rallis India

Portfolio stock; healthy B/S & return ratios, retain BUY rating!Rallis is a portfolio stock with a presence across the agricultural value chain and good brand recall. Rallis has startedwitnessing traction in its CM business, which will provide the next leg of growth, going forward. Even the seedbusiness (Metahelix) is expected to report robust numbers primarily tracking sufficient seed supplies amid normalmonsoon forecast. Rallis is a debt-free company with robust return ratios (core RoICs in excess of 30%). Goingforward, on a consolidated basis, we expect revenues to grow at 10.5% CAGR in FY17-19E to | 2024.5 crore in

Source: Company, ICICIdriect.com Research

PAT 143.3 180.1 196.9 233.0 EPS (|) 7.4 9.3 10.1 12.0

forward, on a consolidated basis, we expect revenues to grow at 10.5% CAGR in FY17 19E to | 2024.5 crore inFY19E (| 1659.3 crore in FY17). We expect EBITDA, PAT to grow at a CAGR of 15.8%, 13.7%, respectively, in FY17-19E. We continue to value Rallis at | 300 i.e. 25x P/E on FY19 EPS of | 12.0 and assign BUY to the stock.

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Strategy Follow up

Open Recommendations:

Date Scrip Name Rec Price Target Stoploss CMPReturn till date

(%)(%)20-Mar-17 IDBI 75 98 66 79 5.3%11-Apr-17 Ashoka Buidcon 208 258 184 213 2.4%18-Apr-17 EIH Ltd 127 152 112 135 6.3%21-Apr-17 Cera Sanitaryware 2934 3680 2520 3024 3.1%21-Apr-17 VST Tillers 1880 2285 1660 2010 6.9%21-Apr-17 Monsanto 2570 3060 2280 2626 2 2%21-Apr-17 Monsanto 2570 3060 2280 2626 2.2%27-Apr-17 Nestle India 6520 7750 5875 6925 6.2%3-May-17 Cummins India 1070 1250 970 1047 -2.1%4-May-17 Vadilal Industries 930 1245 810 962 3.4%9-May-17 Larsen & Toubro 1705 2035 1540 1740 2.1%9-May-17 BGR Energy 173 210 152 180 4.0%11-May-17 Mcdowell 1985 2350 1755 2133 7 5%11 May 17 Mcdowell 1985 2350 1755 2133 7.5%

Summary Performance - Recommendations till date Open Recommendations 12

Total Recommendations 157 Yield on Positive recommendations 20.0%Closed Recommendations 145 Yield on Negative recommendations -8.0%

Positive Recommendations 110Strike Rate 76%Strike Rate 76%

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Notes…

• It is recommended to enter in a staggered manner within the prescribed range provided in the report

• Once the recommendation is executed, it is advisable to keep strict stop loss as provided in the report on closing basis.

• The recommendations are valid for six months and in case we intend to carry forward the position, it will be communicated through separate mail.

Trading portfolio allocationTrading portfolio allocation

• It is recommended to spread out the trading corpus in a proportionate manner between the various technical research products

• Please a oid allocati g the e ti e t adi g co p s to a si gle stock o a si gle p od ct • Please avoid allocating the entire trading corpus to a single stock or a single product segment

• Within each product segment it is advisable to allocate equal amount to each recommendationF l Th ‘D il C ll ’ d i 3 i d d i I i • For example: The ‘Daily Calls’ product carries 3 to 4 intraday recommendations. It is advisable to allocate equal amount to each recommendation

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Recommended product wise trading portfolio allocation

Duration

Daily Calls 8% 2-3% 3-4 Stocks 0.5-1% 2-3% Intraday

Number of CallsReturn Objective

Frontline Stocks Mid Cap StocksProduct Product wise

allocation

AllocationsMax allocation in

1 Stock

Stocks on the Move 6% 3-5% 7-10 Per Months 7-10% 10-15% 3 Months

Weekly Calls 8% 3-5% 1-2 Stocks 5-7% 7-10% 1 Week

Weekly Technicals 8% 3-5% 1-2 Stocks 5-7% 7-10% 1 Week

Monthly Call 15% 5% 2-3 Stocks 7-10% 10-15% 1 Month

Monthly Technical 15% 2-4% 5-8 Stocks 7-10% 10-15% 1 Month

Techno Funda 15% 5-10% 1-2 Stocks 10% and above 15% and above 6 Months

Gladiator Stocks 15% 5 10% 1 2 Stocks 15% and above 20% and above 6 MonthsGladiator Stocks 15% 5-10% 1-2 Stocks 15% and above 20% and above 6 Months

Cash 10% -100%

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Pankaj Pandey Head – Research pankaj.pandey@icicisecurities.com

ICICIdirect.com Research Desk,ICICI Securities Limited,1st Floor Akruti Trade Centre1st Floor, Akruti Trade Centre,Road No 7, MIDCAndheri (East)Mumbai – 400 093research@icicidirect.com

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DisclaimerANALYST CERTIFICATION

We /I Dharmesh Shah Dipesh Dagha Nitin Kunte Pabitro Mukherjee Vinayak Parmar Research Analysts authors and the names subscribed toWe /I, Dharmesh Shah, Dipesh Dagha, Nitin Kunte, Pabitro Mukherjee, Vinayak Parmar Research Analysts, authors and the names subscribed tothis report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) orsecurities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) orview(s) in this report.Terms & conditions and other disclosures:ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stockbrokering and distribution of financial products. ICICI Securities Limited is a SEBI registered Research Analyst with SEBI Registration Number –g p g y gINH000000990.ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India’s largest private sector bank and has its varioussubsidiaries 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.comICICI 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 ourInvestment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from

i i i fi i l i i h i i d i i f i h h lmaintaining a financial interest in the securities or derivatives of any companies that the analysts cover.The information and opinions in this section have been prepared by ICICI Securities and are subject to change without any notice. The report andinformation 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 ICICISecurities. While we would endeavour to update the information herein on reasonable basis, ICICI Securities is under no obligation to update orkeep 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 applicablerated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicableregulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or incertain other circumstances.The research recommendations are based on information obtained from public sources and sources believed to be reliable, but no independentverification has been made nor is its accuracy or completeness guaranteed. These research recommendations and information herein is solely forinformational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities orother financial instruments. ICICI Securities will not treat recipients as customers by virtue of their receiving these recommendations. Nothing inthis section constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriateto your specific circumstances. The securities discussed and opinions expressed herein may not be suitable for all investors, who must maketheir own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not betaken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks.The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securitiesaccepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of these recommendations. Past performance is notnecessarily a guide to future performance Investors are advised to see Risk Disclosure Document to understand the risks associated before

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necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated beforeinvesting in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are notpredictions and may be subject to change without notice.

DisclaimerICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have beenmandated by the subject company for any other assignment in the past twelve months.ICICI Sec ities o its associates ight ha e ecei ed a co pe satio f o the co pa ies e tio ed he ei d i g the pe iod p ecedi gICICI Securities or its associates might have received any compensation from the companies mentioned herein during the period precedingtwelve months from the date of these recommendations 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 merchantbanking or brokerage services from the companies mentioned herein in the past twelve months.ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICISecurities or its associates or its Analysts did not receive any compensation or other benefits from the companies mentioned in the report or thirdSecurities or its associates or its Analysts did not receive any compensation or other benefits from the companies mentioned in the report or thirdparty in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts and their relatives haveany material conflict of interest at the time of publication of this reports.It is confirmed that Dharmesh Shah, Dipesh Dagha, Nitin Kunte, Pabitro Mukherjee and Vinayak Parmar, Research Analysts giving theserecommendations have not received any compensation from the companies mentioned herein in the preceding twelve months.Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactionsICICI Securities or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the

/ i i d h i f h l d f h h di h bli i f h h d icompany/companies mentioned herein as of the last day of the month preceding the publication of these research recommendations.Since Associates (ICICI group companies) of ICICI Securities are engaged in various financial service businesses, they might have financialinterests or beneficial ownership in various companies including the subject company/companies mentioned herein.It is confirmed that Research Analysts do not serve as an officer, director or employee or advisory board member of the companies mentionedherein.ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented herein.Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned hereinNeither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned herein.We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysisactivities.This report or recommendations are not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of orlocated 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 securitiesdescribed herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession thisdocument may come are required to inform themselves of and to observe such restriction.

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