India | Agriculture Sector Update Farmer Channel … · Our channel checks reveal higher crop...
Transcript of India | Agriculture Sector Update Farmer Channel … · Our channel checks reveal higher crop...
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Elara Securities (India) Private Limited
Sumant Kumar•[email protected] • +91 22 6164 8503
Anuja Barve •[email protected]• +91 22 6164 8541
We interacted with 50 farmers across North, Central and
West India to assess sentiments and profitability across
crops. Our channel checks reveal higher crop yields over
2015-16 than in the past two years. However, pests,
unexpected rains and hailstorms remain key risks until
harvesting next month. Labour cost will rise by 20-30%
across pan-India (ex-South India), thereby hiking the cost
of cultivation by 12-15%. However, the benefits of
operating leverage on higher yield and MSP of produce
will raise farm incomes. Most farmers are likely to spend
on fertilizers, agrochemicals and seeds during the
upcoming Rabi season. Agrochemical companies, such as
Dhanuka Agritech, UPL, PI Industries, Insecticides India,
Rallis India and Bayer CropScience (Not Rated), would be
key beneficiaries in H2FY17. Among seeds firms, Kaveri
seeds (NR) & Monsanto India (NR) and among fertilisers,
Tata Chemicals, Coromandel International (NR) &
Chambal Fertilizers (NR) would also benefit.
Crop yield to improve; however risks persist
Farmers say yield across key Kharif crops, namely rice,
oilseeds, cotton, pulses and maize, is expected to improve
for 2015-16, barring the risk of pests, unexpected rains
and hailstorms during the upcoming harvesting month..
Our pan-India survey (ex-South India) underscores yield
across key crops, namely rice, oilseeds, cotton, pulses and
maize, is expected to improve for 2015-16. Rice yield is
likely to rise by 3% YoY to INR 2,461 per hectare. Cotton
yield may increase by ~10.5% YoY to INR 510 per hectare,
due to higher yield from Gujarat, Telangana and
Maharashtra. Farmers say cotton yield in Gujarat will be
higher due to lower rainfall in September. Soyabean yield
(60% of oilseeds in acreage terms) is likely to rise
significantly, led by Maharashtra & MP. Vegetable crops
in Uttar Pradesh (UP) and Bihar were affected by
Monsoon delay and unseasonal rainfall. Jowar and Bajra
yield in Rajasthan is likely to improve YoY. However,
Moong crop yield was hit by ~30-50% by excess rainfall.
Tur (Arhar) yield is likely to rise ~7% YoY.
Operational cost increase on rising labour cost
Our recent channel checks show cost of cultivation has
inched up by 12-15% YoY on a pan-India level over 2015-
16, driven by higher labour costs (30-36% of total cost of
cultivation for all major crops and 20-33% of farmer
revenue). Wages surged by 20-30% across India except in
Gujarat, due to migration to nearby cities in the
construction industry. Maharashtra and Punjab saw a
higher jump in labour cost of 30-40% YoY while UP, Bihar
and Rajasthan were up 20-25% YoY. Madhya Pradesh
(MP) saw labour cost rise by 10-15% YoY. Cost of tilling
the land with a plough in Rajasthan was up by 20% YoY
while Bihar jumped by 15-17% YoY.
Higher yield and rise in MSP to drive up farm income
Farm income is likely to improve across key crops, such as
rice, soyabean, maize, pulses and cotton. This is due to the
benefits of operating leverage on expected higher yield on
1) better rainfall, 2) lower cost of irrigation, 3) a decline in
fertilizer prices, 4) a 4-5% MSP hike across key crops, 5) a 12-
14% MSP increase in pulses, and 6) a shift towards more
profitable crops. We assume the labor cost for 2016E to
increase by ~10% and fixed cost and other operational
expenses by ~5%. We estimate farm income in paddy crops
(~37% of normal area of cultivation) at the EBITDA level in
2016 will jump by ~16% YoY to INR ~10,000 per hectare at
the pan-India level. An expected increase in yield, a MSP rise
of 4% YoY and the benefits of operating leverage (fixed cost
per hectare at ~INR17,000) are key reasons behind higher
income from paddy crops. Farm income in soyabean
(oilseeds) is likely to improve significantly to INR 6,700 per
hectare from an estimated loss of INR 360 per hectare over
2014-15. An expected increase in cotton prices by ~20%
YoY with a ~10% higher yield in Maharashtra and
Telangana (both states were hit by the drought in 2015) will
drive profit of cotton crop at the EBITDA level by 7.7x YoY to
~INR 20,000 per hectare (same as the 2014 levels). Maize
profitability is expected to grow ~9% YoY to INR 3,200 per
hectare. Profit from Tur (Arhar) is likely to rise only 5% to INR
9,800 per hectare on ~3% YoY lower prices. We expect
sugarcane profitability at the EBITDA level to decline ~7% to
~INR 53,000 per hectare on flat yield and prices.
Farm spending priority remains the Rabi season
Stagnating or falling farm incomes for the past two
drought-hit years have taken a toll on farmers. While a
majority are undecided about their spending priorities:
they remain largely committed to: 1) investments in
current agri activities & the upcoming Rabi crop season,
2) children’s education, and 3) surplus over discretionary
goods (tractors, personal vehicles & housing).
India | Agriculture 23 September 2016
Sector Update
Farmer Channel checks
Key Financials Company Rating Mcap CMP Target EV/EBITDA (x) P/E (x) ROE (%)
INR bn USD mn (INR) (INR) FY15 FY16 FY17E FY18E FY15 FY16 FY17E FY18E FY15 FY16 FY17E FY18E
Dhanuka Agritech Buy 36 533 711 823 27.1 25.5 20.0 16.0 33.5 33.1 28.0 22.2 28.8 24.2 24.5 26.3
Insecticides India Buy 11 163 525 604 12.6 13.8 10.6 8.5 19.8 27.6 18.5 13.9 20.4 11.2 13.5 15.9
PI Industries Accumulate 113 1,687 821 835 30.5 26.1 21.0 17.8 46.3 37.5 30.3 25.4 31.1 29.4 28.4 26.9
Rallis India Reduce 44 660 227 222 17.6 20.9 16.6 14.1 28.1 30.9 25.7 21.8 20.9 17.1 17.9 18.8
Tata Chemicals Buy 141 2,113 553 563 10.0 10.2 8.4 7.2 17.7 18.1 14.1 11.4 14.4 13.2 15.2 16.8
UPL Buy 347 5,198 684 759 13.5 12.0 9.9 8.8 26.3 25.2 18.5 15.9 23.8 21.8 24.8 23.6
Note: 1 USD = INR 66.7; Pricing as on 22 September 2016; Source: Company, Elara Securities Estimate
Farmer Channel checks
2 Elara Securities (India) Private Limited
Exhibit 1: Key takeaways from our farmer interactions
States Maharashtra Punjab & Haryana
Uttar Pradesh Bihar Madhya Pradesh Rajasthan Gujarat
Key crops Rice, Cotton, Coarse Cereals, Pulse, Oil seeds
Rice & Cotton Rice, Coarse cereals, Pulse, Oilseeds
Rice , Maize, Sugarcane
Rice, Cotton, Coarse cereals, Pulses, Oilseeds
Cotton, Coarse cereals, Pulses & Oilseeds
Cotton, soybean, cereals Pulses, Oilseeds
Cost of labour YoY (%)
30-40 30-40 20-25 20-25 10-15 20-25 No substantial increase in cost
Yield expectation
Positive for soyabean & rice, Lower yield for sugarcane
Positive for rice
Positive for rice, vegetable crops damaged on excess rainfall
Positive for rice, vegetable crops damaged on excess rainfall
Positive for soyabean
Better yield for bajra & jowar, moong crop affected by ~30-50% on higher rainfall
Cotton yield likely to be better
Spending priority
1. Investment for agricultural activities
2. Children’s education
1. Investment for agricultural activities
2. House
3. Four-wheelers
1. Investment for agricultural activities
2. Marriage and children’s education
1. Investment for agricultural activities
2. Marriage and children’s education
1. Investment for agricultural activities
2. Children’s education
1. Investment for agricultural activities
2. Investment for Rabi season
3. Marriage and education
1. Investment for agricultural activities
2. Investment for Rabi season
3. Buying tractors
Source: Elara Securities Research
Exhibit 2: Crop-wise sowing contribution for key states on a pan-India Level
Note: Rainfall as on 22 September 2016, Source: IMD, Ministry of Agriculture, Elara Securities Research
Tamil
Nadu
Kerala
Karnataka
Andhra
Pradesh
Maharashtra
Madhya Pradesh
Rajasthan
Gujarat
Uttar Pradesh
Punjab
Bihar
Orissa
JharkhandWest
Bengal
SikkimArunachalPradesh
Assam
Tripura
Meghalaya
Mizoram
Manipur
Nagaland
Goa
Pondicherry
Uttaranchal
Jammu
&
Kashmir
Haryana
HimachalPradesh
Delhi
Chhattisgarh
Telangana
15
9 8
2
Ric
e
Co
ars
e
ce
rea
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Pu
lse
s
Oils
ee
ds
(%) 8
4 5
Ric
e
Ma
ize
Su
garc
an
e
(%)
5 5 8
12
35
Ric
e
Co
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n
Co
ars
e
ce
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Pu
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s
Oils
ee
ds
(%)
7
4
Ric
e
Co
tto
n
(%)
Excess rainfall (20% or more)
Normal rainfall(-19% to -19%)
Deficient (-59% to -20%)
4
34
13
20 20
Ric
e
Co
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Co
ars
e
ce
rea
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Pu
lse
s
Oils
ee
ds
(%)
22
6 5
14
Co
tto
n
Co
ars
e
ce
rea
ls
Pu
lse
s
Oils
ee
ds
(%)
4
31
22
11
Co
tto
n
Co
ars
e
ce
rea
ls
Pu
lse
s
Oils
ee
ds
(%)
3
5
3
Ric
e
Co
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n
Co
ars
e
ce
rea
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(%)
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Exhibit 3: Rice - normal area - sowing Exhibit 4: Cotton - normal area - sowing
Source: Agriculture Ministry Source: Agriculture Ministry
Exhibit 5: Coarse cereals - normal area - sowing Exhibit 6: Oil seeds - normal area - sowing
Source: Agriculture Ministry Source: Agriculture Ministry
Exhibit 7: Maize - normal area - sowing Exhibit 8: Pulses - normal area - sowing
Source: Agriculture Ministry Source: Agriculture Ministry
Uttar Pradesh5.8
West Bengal 4.1
Odisha3.8
Chhattisgarh3.8 Bihar
3.1 Punjab
2.8
Assam2.1
Madhya Pradesh
1.8
Andhra Pradesh
1.6
Tamil Nadu1.6
Maharashtra 1.5
Jharkhand1.3
Haryana1.2
Karnataka1.1
Telangana1.1 Others
2.5
(mn hectares)
Maharashtra 4.1
Gujarat2.7
Telangana0.1
Karnataka0.6
Madhya Pradesh
0.6
Haryana0.6
Andhra Pradesh
0.6
Punjab0.5
Rajasthan0.4
Tamil Nadu0.1
Others1.6
(mn hectares)
Rajasthan6.3
Maharashtra2.6
Karnataka2.4
Uttar Pradesh1.8
Madhya Pradesh
1.6
Gujarat1.2
Haryana0.6
Telangana0.6
Tamil Nadu0.5
Other2.4
(mn hectares)
Madhya Pradesh
6.4
Maharashtra3.6
Gujarat2.5
Rajasthan2.0
Andhra Pradesh
1.2
Uttar Pradesh0.4
Telangana0.3
Karnataka 1.0
Others0.6
(mn hectares)
Karnataka1.2
Rajasthan1.0
Madheya pradesh
0.9
Maharashtra0.7
Uttar Pradesh0.7
Telangana0.5
Gujarat0.4
Jammu & Kashmir
0.3
Himachal Pradesh
0.3
Bihar 0.3
Jharkhand0.2
Tamil Nadu0.2
Other0.7
(mn hectares)
Rajasthan2.4
Maharashtra2.2
Karnataka1.3
Madhya Pradesh
1.3
Uttar Pradesh0.9
Telangana0.5
Odisha0.5
Gujarat0.5
Tamil Nadu0.2
Jharkhand0.3
Chhattisgarh0.2
Andhra Pradesh
0.3Other
0.3
(mn hectares)
Farmer Channel checks
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Kharif sowing reaches 100%
Pulses, coarse cereals, rice drive up sowing by 3.6%
Although cumulative rainfall was lower by 5% to long
period average (LPA) at 766.1mn hectares (mnh), up to 14
September 2016, sowing surged to ~100% of normal area
coverage as on 16 September, backed by normal rainfall
during the peak sowing period of July-August. Kharif crops
sowing in FY17 was higher by ~3.6% YoY to 105.9mnh as
on 16 September 2016, as per the Ministry of Agriculture.
Crop sowing was 4.4% higher than normal of
corresponding week at 101.5mnh. Rice sowing saw growth
of 2.8% YoY to 38.2mnh (38.0mnh as on 9 September),
pulses surged 28.9% YoY to 14.5mnh (14.4mnh as on 9
September) and sugarcane was down 7.7% YoY to 4.6mnh.
Sowing of coarse cereals rose 3.2% YoY to 18.9mnh,
oilseeds up 2.8% YoY to 18.8mnh while cotton sowing
lower by 11.3% YoY to 10.2mnh (10.2mnh as on 9
September).
Pulses sowing rises significantly in most states
Higher MSP coupled with better farm economics & lower
profitability in cotton on increased incidences of pest
attacks have encouraged farmers to shift to pulses. The
government has announced a bonus of INR 425 per
quintal for Kharif pulses, namely arhar (tur), urad and
moong to protect farmers from cheaper imports and
control price hikes. Pulses sowing as on 16 September
2016 was 133% of normal area coverage of 10.9mnh. It
surged 28.9% YoY to 14.5mnh. There was surplus of
4.0mnh compared to normal of corresponding week at
~10.6mnh. Higher sowing was reported from Karnataka
(1.8mnha, up 40.5% YoY), Rajasthan (3.3mnh, a surge of
27.9% YoY), Maharashtra (2.6mnh, an increase of 41.9%
YoY), Madhya Pradesh (2.1mnh, up 23.2% YoY),
Telangana (0.6mnh, a sharp rise of 76.8% YoY), Gujarat
(0.7mnh, surged by 72.0% YoY), Andhra Pradesh
(0.4mnh, up 53.9% YoY) and Jharkhand (0.4mnh, up
43.5% YoY). Lower sowing was reported only in Uttar
Pradesh (1.0mnh, down 7.4% YoY).
Higher rice sowing in most states
Rice sowing as on 16 September 2016 reached almost
97% of the normal coverage area of 39.2mnh. As on 16
September 2016, rice sowing was higher by 2.8% YoY to
38.2mnh. There was a surplus of 0.9mnh YoY compared
to normal of corresponding week at 37.3mnh. Higher
rice sowing was reported from West Bengal (4.2mnh, up
9.8% YoY), Haryana (1.3mnh up 5.6% YoY), Madhya
Pradesh (2.3mnh, up 11.7% YoY), Punjab (3.0mnh, an
increase of 1.2% YoY), Maharashtra (1.5mnh, a rise of
3.8% YoY), Telangana (0.6mnh, up 10.1% YoY),
Jharkhand (1.7mnh, an increase of 5.8% YoY), Bihar (flat
at 3.3mnh) and Tamil Nadu (0.3mnh, an increase of 0.6%
YoY). Less rice was sown in Assam (2.1mnh, a fall of 1.7%
YoY) and Karnataka (0.8mnh, a cut of 3.3% YoY).
Cotton sowing lower in almost all states
Cotton sowing as on 16 September 2016 was at 85% of
the normal area coverage of 12.0mnh. The shortage in
cotton sowing increased from 11.0% YoY as on 9
September 2016 to 11.3% YoY as on 16 September to
10.2mnh. However, the shortfall was at 1.6mnh (13.2%
lower) vs normal of corresponding week at ~11.8mnh. In
Madhya Pradesh, it increased 9.5% YoY to 0.6mnh.
Lower sowing was reported in Maharashtra (3.8mnh, a
drop of 0.5% YoY), Gujarat (2.4mnh, a dip of 13.8% YoY),
Telangana (1.2mnh, a cut of 26.5% YoY), Rajasthan
(0.4mnh, down by 5.3% YoY), Haryana (0.5mnh, a
decline of 14.3% YoY), Andhra Pradesh (0.4mnh, a drop
of 29.6% YoY), Punjab (0.3mnh, down 43.1% YoY) and
Karnataka (0.5mnh, a drop of 10.4% YoY).
Pests, Monsoon delay impact cotton sowing
The fear of infestation of White Fly in the north zone
(Punjab & Haryana) and Pink Boll Worm in the central &
south zones and a delay in the Monsoon were key
reasons for lower sowing acreage of cotton. While
cotton sowing has seen a major shift towards non-BT
cotton, with ~80.0% YoY growth to 1.7mnh, sowing
acreage improved from ~8.4% to ~17.0% of total area as
on 16 September 2016. Higher non-BT cotton sowing
was reported in Gujarat (increased from 5% as on 9
September 2016 to 20% as on 16 September 2016),
Maharashtra (from 10% to 15%), Karnataka (from 17.1%
to 35.0%), Haryana (from 10.2% to 26.9%), Rajasthan
(from 12.3% to 35.0%) and Punjab (from 1.3% to 5.1%).
However, BT cotton sowing, with a 19.6% YoY decline in
sowing acreage to 8.5mnh, fell from 91.6% to 83.0%.
Maize sowing rise continues by 9.0% YoY
Kharif maize sowing as on 16 September 2016 was
113% of the normal coverage area of 7.3mnh. Maize
sowing surged 9.0% YoY to 8.3mnh. There was surplus
of 0.9mnh compared to normal of corresponding week
at ~7.5mnh. Higher sowing was reported from
Karnataka (1.3mnha, up 21.5% YoY), Maharashtra
(0.9mnha, an increase of 21.7% YoY), Madhya Pradesh
(1.3mnha, a surge of 15.0% YoY), Bihar (0.4mnha, an
increase of 1.6% YoY), Telangana (0.6mnha, up 41.1%
YoY) and Gujarat (0.3mnha, up 7.6% YoY). Lower sowing
was reported in Uttar Pradesh (0.8mnha, a fall of ~4.6%
YoY), J&K (0.2mnha, down 4.0% YoY) and Rajasthan
(0.9mnha, down 4.0% YoY).
Coarse cereals up on higher sowing
Coarse cereals sowing as on 16 September 2016 reached
~94% of the normal coverage area of 20.0mnh. Coarse
cereals sowing surged 3.2% YoY to 18.9mnh. There was
surplus of 0.5mnh compared to normal of corresponding
week at ~18.3mnh. Higher sowing was reported from
Karnataka (2.2mnha, up 18.9% YoY), Maharashtra
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(2.4mnha, an increase of 12.7% YoY), Madhya Pradesh
(2.0mnha, up 10.6% YoY), Haryana (0.6mnha, up 15.4%
YoY), Telangana (0.6mnha, up 42.2% YoY) and Gujarat
(0.6mnha, an increase of 7.3% YoY). Lower sowing was
reported in Rajasthan (5.5mnha, a decline by 9.2% YoY)
and Uttar Pradesh (2.0mnha, down ~1.8% YoY) and
Tamil Nadu (0.2mnha, a fall of 20% YoY)
Oilseeds up in AP, Telangana, Karnataka,
Maharashtra & Gujarat
Oilseeds sowing as on 16 September 2016 reached
almost 103% of the normal coverage area of 18.3mnh. It
improved by 2.8% YoY to 18.8mnh. There was surplus of
0.7mnh compared to normal of corresponding week at
18.1mnh. Higher sowing was reported from Andhra
Pradesh (1.0mnha, a jump of 33.4 YoY), Telangana
(0.4mnha, up 17.3% YoY), Maharashtra (4.2mnha, a rise
of 5.8 %), Rajasthan (2.2mnha, up by 5.2% YoY),
Karnataka (up 25.6% YoY to 1.0mnha) and Gujarat
(2.5mnha, an increase of 6.2 %). Lower sowing was
reported in Madhya Pradesh (6.1mnha, a drop of 7.2 %),
and Uttar Pradesh (0.6mnha, a cut of 7.9% YoY).
Ground water levels improve across major reservoirs
As per the Central Water Commission (CWC), all-India live
storage available in 91 key reservoirs as on 15 September
2016 improved from 58.4% in the corresponding
previous year to 69% of total capacity of 157.8bn cubic
meters (bcm). Higher water levels were reported in the
eastern region (improved from 57% to 78%), western
(from 58% to 74%), central (from 77% to 87% vs 10-year
average of 70%) and Southern (from 34% to 42% vs 10-
year average of 75%). However, the northern region
remains low at 79% currently over the past year’s 87%.
According to CWC, out of 91 reservoirs, 56 reported
more than 80% of normal storage and 35 reported 80%
or below of normal storage. Out of 35 reservoirs, 18
have storage upto 50% of normal storage.
Farmer Channel checks
6 Elara Securities (India) Private Limited
Rainfall deficit of 4% at the pan-India level
Lower rainfall in Punjab, Haryana, Assam and Himachal
Pradesh broadened cumulative rainfall deficit to 4% to
813.1mm of LPA as on 22 September 2016. Excess
rainfall was reported in Rajasthan. Normal rainfall was in
Maharashtra, Andhra Pradesh, Madhya Pradesh, Tamil
Nadu, Gujarat, Uttar Pradesh, West Bengal, Odisha,
Karnataka, Telangana and Chhattisgarh. Punjab (down
25%), Haryana (26% lower), Himachal Pradesh (22%
lower) and Kerala (a fall of 32%) continue to be in the
deficit zone, reporting less rainfall as on 22 September
2016. The IMD had forecast "above normal" rainfall in the
country.
Exhibit 9: Rainfall during 1 June- 22 September 2016
Source: IMD
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Exhibit 10: Rainfall during 1 June- 30 September 2015
Source: IMD
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Exhibit 11: Rainfall during 1 June- 30 September 2014
Source: IMD
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Exhibit 12: Key pictures of farms from Bihar, Uttar Pradesh, Rajasthan, Punjab and Haryana
Source: Elara Securities Research
Farmer Channel checks
10 Elara Securities (India) Private Limited
Source: Elara Securities Research
Elara Securities (India) Private Limited
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Any clarifications / queries on the proposal as well as any future communication regarding the proposal should be addressed
to Elara Securities (India) Private Limited.
Elara Securities (India) Private Limited was incorporated in July 2007 as a subsidiary of Elara Capital (India) Private Limited.
Elara Securities (India) Private Limited is a SEBI registered Stock Broker in the Capital Market and Futures & Options Segments
of National Stock Exchange of India Limited (NSE) and in the Capital Market Segment of BSE Limited (BSE).
Elara Securities (India) Private Limited’s business, amongst other things, is to undertake all associated activities relating to its
broking business.
The activities of Elara Securities (India) Private Limited were neither suspended nor has it defaulted with any stock exchange
authority with whom it is registered in last five years. However, during the routine course of inspection and based on
observations, the exchanges have issued advise letters or levied minor penalties on Elara Securities (India) Private Limited for
minor operational deviations in certain cases. Elara Securities (India) Private Limited has not been debarred from doing
business by any Stock Exchange / SEBI or any other authorities; nor has the certificate of registration been cancelled by SEBI at
any point of time.
Elara Securities (India) Private Limited offers research services primarily to institutional investors and their employees, directors,
fund managers, advisors who are registered or proposed to be registered.
Elara Securities (India) Private Limited
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Details of Associates of Elara Securities (India) Private Limited are available on group company website www.elaracapital.com
Elara Securities (India) Private Limited is maintaining arms-length relationship with its associate entities.
Research Analyst or his/her relative(s) may have financial interest in the subject company. Elara Securities (India) Private
Limited does not have any financial interest in the subject company, whereas its associate entities may have financial interest.
Research Analyst or his/her relative does not have actual/beneficial ownership of 1% or more securities of the subject
company at the end of the month immediately preceding the date of publication of Research Report. Elara Securities (India)
Private Limited does not have actual/beneficial ownership of 1% or more securities of the subject company at the end of the
month immediately preceding the date of publication of Research Report. Associate entities of Elara Securities (India) Private
Limited may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month
immediately preceding the date of publication of Research Report. Research Analyst or his/her relative or Elara Securities
(India) Private Limited or its associate entities does not have any other material conflict of interest at the time of publication of
the Research Report.
Research Analyst or his/her relative(s) has not served as an officer, director or employee of the subject company.
Research analyst or Elara Securities (India) Private Limited have not received any compensation from the subject company in
the past twelve months. Associate entities of Elara Securities (India) Private Limited may have received compensation from the
subject company in the past twelve months. Research analyst or Elara Securities (India) Private Limited or its associate entities
have not managed or co-managed public offering of securities for the subject company in the past twelve months. Research
analyst or Elara Securities (India) Private Limited or its associates have not received any compensation for investment banking
or merchant banking or brokerage services from the subject company in the past twelve months. Research analyst or Elara
Securities (India) Private Limited or its associate entities may have received any compensation for products or services other
than investment banking or merchant banking or brokerage services from the subject company or third party in connection
with the Research Report in the past twelve months.
Disclaimerfor non U.S. Investors
The information contained in this note is of a general nature and is not intended to address the circumstances of any
particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.
No one should act on such information without appropriate professional advice after a thorough examination of the
particular situation.
Disclaimer for U.S. Investors
This material is based upon information that we consider to be reliable, but Elara Capital Inc. does not warrant its
completeness, accuracy or adequacy and it should not be relied upon as such.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument.
Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. Any opinions expressed
herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue.
Prices, values or income from any securities or investments mentioned in this report may fall against the interests of the
investor and the investor may get back less than the amount invested. Where an investment is described as being likely to
yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate.
Where an investment or security is denominated in a different currency to the investor’s currency of reference, changes in
rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. The
information contained in this report does not constitute advice on the tax consequences of making any particular
investment decision. This material does not take into account your particular investment objectives, financial situations or
needs and is not intended as a recommendation of particular securities, financial instruments or strategies to you. Before
acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances
and, if necessary, seek professional advice.
Certain statements in this report, including any financial projections, may constitute “forward-looking statements.” These
“forward-looking statements” are not guarantees of future performance and are based on numerous current assumptions
that are subject to significant uncertainties and contingencies. Actual future performance could differ materially from these
“forward-looking statements” and financial information.
Elara Securities (India) Private Limited
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India Elara Securities (India) Pvt. Ltd. Indiabulls Finance Centre, Tower 3, 21st Floor, Senapati Bapat Marg, Elphinstone Road (West) Mumbai – 400 013, India Tel : +91 22 6164 8500
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