October 18, 2019 S tock TALESbsmedia.business-standard.com/_media/bs/data/...soft luggage,...

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Stock_____

TALES

October 18, 2019

ICIC

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Retail E

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October 18, 2019

CMP: | 465 Target: | 540 ( 16%) Target Period: 12 months

months

VIP Industries (VIPIND)

BUY

Balanced product portfolio to usher sustained growth

VIP Industries is one of Asia’s leading seller/manufacturer of various types

of luggage’s, backpacks, and handbags. Predominately into luggage space

(~75% of revenues), we believe VIP is well poised to capture high trajectory

growth opportunities in the ‘backpack’ (~18% of revenues) and ‘handbag’

(~7% of revenues) segments through its brands; ‘Skybags’ and ‘Caprese’.

Also, given its leadership position in the organised market (50%+ market

share), structural changes such as GST are expected to provide growth

impetus to its entry level brand, ‘Aristocrat’ (priced < | 3000). VIP Industries

appears well placed to play on the huge domestic luggage opportunity.

Backpacks segment acting as revenue growth catalyst

The backpacks industry is pegged at ~| 8000 crore and is growing at a much

faster clip than the luggage industry. Furthermore, the unorganised pie is

much larger as compared to luggage industry (~80% vs. 60%), which gives

immense opportunity to players like VIP to enhance its market share.

Backpacks currently contributes ~18% of the revenues for VIP and is

growing at a swift pace of 30%+ annually. We expect healthy trajectory to

sustain going forward owing to faster replacement cycle as compared to

luggage and shift from unbranded to branded products. We expect

backpacks category to contribute ~20% by FY21E.

Bangladesh facility to reduce dependence on china

China is the largest sourcing hub for soft luggage category, given the

abundant availability of labour. Labour cost in China has been on an uptrend

leading to input cost pressure. Also depreciating rupee (vs. dollar rate)

brings in high volatility to gross margins. To address the issue, company

over the years has reduced its dependency on sourcing soft luggage from

China by setting up a manufacturing plant in Bangladesh through its wholly

owned subsidiaries. VIP currently sources 70% from China (down from

~90%) with management expecting to take the share further down. The new

facility in Bangladesh will aid in partially replacing the traded goods with

manufactured goods, thus enabling better margins.

Valuation & Outlook

VIP has a capital efficient business model, generating 32%+ RoCE and

having virtually debt free status. Owing to its market leadership and strong

brand patronage among consumers, VIP’s business model has the inherent

ability to tide over tough market conditions and continue its profitable

growth journey. We expect VIP revenue’s to grow at a CAGR of 16% over

FY19-FY21E on a high base of FY19 (revenue growth of 27%). On the

profitability front, healthy EBITDA margins in Q1FY20 and reduction in

taxation rate for FY20 is expected to aid PAT growth. We model in 23% PAT

CAGR in FY19-21E and expect RoCE to improve by 230 bps to 35.0% in

FY21E. We ascribe BUY rating on the stock with a target price of | 540,

valuing at 35x FY21E EPS of | 15.4.

Key Financial Summary

Particulars

Particulars Amount

Market Capitalisation (| crore) 6,570.5

Total Debt (FY19) (| crore) 86.2

Cash (FY19) (| crore) 14.2

EV (| crore) 6,642.4

52 Week H / L 567 /342

Equity Capital (| crore) 28.3

Face Value (|) 2.0

Price Chart

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Research Analyst

Bharat Chhoda

[email protected]

Cheragh Sidhwa

[email protected]

| crore FY18 FY19 FY20E* FY21E CAGR (FY19-21E)

Net Sales 1,409.6 1,784.7 1,991.8 2,391.3 15.8%

EBITDA 193.4 224.7 253.0 310.9 17.6%

Adjusted PAT 126.8 145.3 141.7 218.3 22.6%

P/E (x) 51.8 45.2 46.4 30.1

EV/Sales (x) 4.6 3.7 3.3 2.7

EV/EBITDA (x) 33.5 29.6 26.0 21.0

RoCE (%) 38.8 32.4 33.3 34.7

RoE (%) 25.9 25.0 21.1 26.9

Source: ICICI Direct Research, Company. In Q1FY20, company reported and exceptional loss of | 48.0 crore pertaining to fire at Ghaziabad warehouse. Management has indicated that the loss is

adequately insured. We expect Adjusted PAT to be | 178.0 crore

ICICI Securities | Retail Research 2

ICICI Direct Research

Stock Tales | VIP Industries

Company Background

Incorporated in 1971, VIP is Asia’s leading manufacturer/seller of hard and

soft luggage, backpacks, suitcases, shoulder bags, office bags and duffel

trolleys. VIP has range of leading brands, positioned across entire price

range, catering to value, mid and premium price points. Apart from its

flagship brand, ‘VIP’, it has various other popular brands such as Alpha,

Aristocrat, Skybags, Carlton and Caprese. VIP has a robust distribution

network having 11000+ point of sales, comprising of 500+ exclusive

branded outlets. Hypermarket and e-commerce channels have been among

the fastest growing distribution vehicle for VIP in the recent times.

Exhibit 1: Product portfolio catering across segments

Value segment;

Luggage, backpacks

Positioned as youth centric

brand;

Luggage, backpacks

Company's flagship brand;

Luggage, backpacks

One of leading brands for

ladies handbags;

Handbags, accessories

Caters to young business

traveler in super-premium

category;

Luggage

Source: Company, ICICI Direct Research

VIP over the years has made sturdy inroads to fortify its presence in mid-

priced segments (| 3000- | 5000) in which the company has ~70% market

share. As for the other segments are concerned, the low priced SKU’s (< |

3000) were dominated by unorganised players, whereas the premium

segment (> | 5000) were catered by players such as Samsonite. Over the

last few quarters, VIP has outlined significant opportunities to capture the

segments in which it does not have a strong foothold through investments

in marketing spends and new trendy product launches.

Over the years, the company has consistently invested towards spreading

its product awareness and creating a brand value. While revenues increased

at a CAGR of ~13% during FY13-19, the advertising and promotional spends

increased by a CAGR of ~15%. In Q1FY20, the management had to tone

down its promotional spends in order to maintain the profitability. We

expect the company to increase its advertisement spends, amid the recent

corporate tax rate cut ahead of the upcoming wedding and festive season.

Exhibit 2: Advertisement spends as a percentage to sales

44.64 44.1

57.0662.97

70.776.78

89.53

99.36

5.2 5.0

5.96.0

5.8 6.0

6.4

5.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

0

20

40

60

80

100

120

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

%

| crore

Ad expenses % to sales





Investment Rationale

Organised Luggage Industry poised to gain market share

Luggage industry in India is gradually shifting from being a utility based

product to a fashion statement. Increasing fashion consciousness and

aspirational levels are driving robust demand towards branded players.

Previously there used to be one luggage per family of 4-5 people but

nowadays each one has his own luggage.

The recent implementation of GST has been instrumental in nudging the

buyers to shift from unorganised players to the branded ones. The luggage

and backpack industry is dominated by unorganised players having more

than 60% market share. Introduction of GST turned out to be a big boost for

players such as VIP and Samsonite as it is expected bring a level playing

field vis-à-vis the unorganised industry by reducing the possibility of tax

evasion. Furthermore, the government reduced the GST rate on luggage

from 28% to 18% in Q3FY18. We believe the shift is structural in nature with

robust revenue growth visible across all major luggage players, especially

in value category.

Exhibit 3: FY19 revenue growth vs. FY13-18 CAGR

Company FY13-18 FY19

Revenue CAGR Growth

VIP Industries 11% 29%

Safari Industries 26% 38%

Samsonite (India) 6% 18%

Source: Company, ICICI Direct Research. For Samsonite period of comparison in CY12-17 vs. CY18

Post implementation of GST, VIP’s entry level brand, ‘Aristocrat’, has

witnessed significant traction with the brand reporting growth as high as

70% in FY18. Robust growth can be also attributed to aggressive

investments in marketing spends to enhance the brand profile. The gross

margins for the Aristocrat brand is significantly lower as compared to

company’s average (lower by ~500 bps). To address the same, the

management has undertaken several efforts such as negotiating with the

Chinese suppliers and value engineering the products to bring down the

product cost. While the efforts would take some time to materialize, the

management is confident of sustaining healthy revenue trajectory driven by

market share gains mainly from unorganised players.

Company’s flagship brand ‘VIP’ yields healthy gross margins, however the

brand has struggled to maintain healthy revenue trajectory. Subsequently,

the revenue contribution from the VIP brand has declined from ~ 50% in

FY14 to ~ 40% in FY19. In a bid to revive the brand, the management has

undertaken several initiatives, such as; a) relaunched VIP brand with a new

logo, b) launched new trendy product lines, c) repositioned as a holiday

theme luggage, d) spent aggressively on promotional expenses (invested in

IPL and appointed new brand ambassadors). The efforts were visible as

management indicated that the brand performed relatively better in Q1FY20.




Backpacks to provide sustained impetus to revenue growth….

Backpacks has been one of the fastest growing category for VIP since its

inception (was launched in FY11). Backpacks are mainly marketed through

its youth oriented brand, Skybags (backpacks contribution increased from

~15% in FY14 to ~40% of Skybags brand revenue). As per our estimates,

revenues for backpacks have grown at a CAGR of 35% over the last five

years to ~| 330 crore in FY19. Subsequently, contribution to overall

revenues grew 2.5x to 18% in FY19. Company has sold over three million

backpacks in FY19 majorly through its Skybags brand.

The backpacks industry is pegged at ~| 8000 crore and is growing at faster

pace than the luggage industry. The unorganised pie is much larger as

compared to luggage industry (~80% vs. 60%), which gives immense

opportunity to players like VIP to enhance its market share gains.

Furthermore, unlike luggage, repeat purchases are more frequent in

backpacks resulting in better inventory turns. The growth is fuelled by

number of factors such as increase in workforce, higher enrollment of school

and college students and sale of 2W automobiles. We expect the backpack

segment to continue outpacing the luggage space on the back of favorable

tailwinds. As far as competition is concerned, VIP has an upper hand given

the robust distribution network across all channels.

Exhibit 4: Backpacks growth trend…

245

331

377

483

-

100

200

300

400

500

600

FY18 FY19 FY20E FY21E

| crore

Source: Company, ICICI Direct Research. The company does not publish segmental data. The numbers are based on

management interviews and our assumptions

Change in pricing strategy elevates revenue growth in

handbags….

VIP forayed into ladies handbag market in 2013 through its brand Caprese.

Though the brand did not yield satisfactory results at the beginning, change

in pricing profile (VIP introduced lower range products priced at | 1000) and

significant investment in branding and ad spends (roped in Alia Bhatt as

brand ambassador) have resulted in healthy traction in the brand in recent

times. The brand achieved turnover of ~ | 100 crore in FY18, translating into

CAGR of ~47%, albeit on a small base.

According to the management, Caprese has made quite inroads with the

brand capturing the third spot (in the price range in which it operates) in

India. The current market size for ladies handbag is pegged at ~| 5000 crore

and is expected to double in the next five years, on the back of increase

number of working women and healthy growth in e-commerce space (since

~40% of revenues are derived from e-commerce channel). We model in

30% CAGR for the handbags segment in FY19-21E. Handbags are high

margin yielding product category with gross margins ~500 bps superior

than company’s average margins.




Reduced dependency on China to improve margin profile

China over the years has turned out to be one of the largest sourcing hub

globally for the soft luggage category. Since manufacturing of soft luggage

is characterized as being labour intensive, majority of the players prefer

importing goods from China (given the abundant labour availability) rather

than producing it indigenously. Given the huge scale in which China

(supplier) operates, the bargaining power of the buyers gets restricted.

Labour cost in China have been on an uptrend in the recent times leading to

input cost pressure. Furthermore, since payment is made in dollar terms to

the Chinese suppliers, depreciating rupee (vs. dollar) negatively impacts the

gross margins for the company. To address the issues, company over the

years has reduced its dependency on sourcing soft luggage from China by

setting up a manufacturing plant in Bangladesh through its wholly owned

subsidiary.

Advantages of setting up manufacturing facility in Bangladesh are as

follows:

A) Shrinks over dependency on Chinese players in case of rising wage

inflation. The labour cost in Bangladesh is ~ 1/4th of that in China.

B) Better control over inventory sourcing, whereas currently the

company directly sources finished goods in which it has limited

control.

C) The new facility in Bangladesh will aid in partially replacing the

traded goods with manufactured goods, thus enabling better

margins.

D) GOI recently, hiked the import duty rates on luggage from 10% to

15%. Bangladesh however is exempted from the duty bracket.

Exhibit 5: Revenue trend for Bangladesh subsidiaries

1115.9

49

13.8

5

18.4 19.8

57

25.2 25.9

38.9 39.2

129.2

0

20

40

60

80

100

120

140

Q3FY17

Q4FY17

FY17

Q1FY18

Q2FY18

Q3FY18

Q4FY18

FY18

Q1FY19

Q2FY19

Q3FY19

Q4FY19

FY19


Exhibit 6: Average PAT margin for Bangladesh operations have always been

superior than standalone PAT margin of the company

0.0

5.0

10.0

15.0

20.0

25.0

Q3FY17

Q4FY17

FY17

Q1FY18

Q2FY18

Q3FY18

Q4FY18

FY18

Q1FY19

Q2FY19

Q3FY19

Q4FY19

FY19

Bangladesh PAT Margin (%) Standalone PAT Margin (%)

Source: Company, ICICI Direct Research. Disruption in production facilities resulted in weak performance in Q2FY18




Financials

Diverse product profile to enable capturing category growth

opportunity

We pencil in revenue CAGR of 16% in FY19-21E, with backpacks and

handbags category expected to continue to grow at a faster clip. We expect

share of revenue from backpacks to increase by ~ 200 bps by FY21E to

~20%. In the luggage space, repositioning of its flagship brand, ‘VIP’ and

healthy demand for entry level priced brand, ‘Aristocrat’ are expected to be

the key growth levers. The revenue growth trajectory is expected to

decelerate in FY20 owing to tough market conditions and muted air traffic

growth (discontinuation of Jet Airways services), however, VIP could be a

beneficiary as and when the market scenario improves. We expect growth

momentum to pick up pace from H2FY20 onwards.

Exhibit 7: Revenue trend

972.81047.7

1216.51275.2

1409.6

1784.7

1991.8

2391.3

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

FY14 FY15 FY16 FY17 FY18 FY19 FY20E FY21E

| crore





Launch of better margin products and sourcing from

Bangladesh to prop EBITDA margin

Q1 generally tends to be one of the strongest quarters in terms of revenue

(~30%) and profitability (~45%), since the peak travel season occurs in

April-June. Despite moderate revenue growth in Q1FY20 (9% YoY), VIP

clocked in one of its highest ever EBITDA margin of 19.1%.

Rupee depreciation and increase in custom duty hike (from 10% to 15%)

had impacted the gross margins negatively in Q3FY19 (down 430 bps YoY

to 46.7%) and Q4FY19 (down 710 bps YoY to 47.5%). Despite high cost

inventory, sustained efforts by the management translated into healthy

gross margin expansion of 290 bps QoQ to 50.4% in Q1FY20. The triggers

for improvement in margins were as follows; a) took gradual price increase,

b) better price negotiations with the Chinese dealers owing to US-China

trade war, c) deprecation of Yuan vs. dollar and c) launching of new products

at a better margin profile.

We expect EBITDA margins to remain range bound in FY20E to 12.7% owing

to certain existing high cost inventory and moderate revenue growth. We

model in 30 bps YoY EBITDA margin expansion to 13.0% in FY21E and

expect EBITDA to grow at a CAGR of 18% in FY19-21E. Increase in share of

Bangladesh imports and enhanced product mix to assist margin expansion.

Exhibit 8: EBITDA margin trend

80.3 77.5

107.9

131.8

193.4

224.7 253.0

310.9

8.37.4

8.9

10.3

13.7

12.6 12.7

13.0

0

2

4

6

8

10

12

14

16

0

50

100

150

200

250

300

350


%

| crore

EBITDA EBITDA Margin





Improved operational performance and lower tax to aid PAT

growth

PAT has grown at a superior 33% CAGR in FY15-19 to | 145.3 crore, led by

healthy revenue growth (15% CAGR) and robust EBITDA margin expansion

of 520 bps to 12.6%. The company follows an asset light business model

(Gross block asset T/O: 11.4x) with capex expected to be in the range of |

40-50 crore. Interest and depreciation component is likely to stay low, which

would lead to PBT growth being in sync with EBITDA growth. The recent cut

in corporate tax rate is a big positive for VIP Industries as it was hitherto a

full tax paying company. This would directly have a positive impact on

cashflow generation and return ratios. We expect PAT to grow at a CAGR of

23% in FY19-21E to | 218.3 crore.

Exhibit 9: PAT expected to be aided by lower tax rate

57.646.6

66.5

83.9

126.8

145.3141.7

218.3

0

50

100

150

200

250


| crore


Working capital to improve in FY20E

VIP has a capital efficient business model having stringent working capital

cycle and generating healthy return ratios (RoCE: 32%). For the last five

years, company on an average has had working capital requirements of

~20% of net sales with average payable days being 40, followed by

inventory and receivable days of 75 and 45 respectively. However, in FY19,

NWC/sales ratio bloated to 28% majorly owing to higher inventory days (up

from 82 to 108) and debtor days (up from 46 to 61). Higher receivable days

were on account of delay in collections from CSD, whereas high inventory

stocking in anticipation of strong demand resulted in high cost inventory in

the books. We expect working capital position to improve in FY20/FY21 with

gradual reduction in inventory level and collection of dues from CSD.

Exhibit 10: Working capital trend

79.0

86.2

80.9

82.0

107.9

95.0

92.0

38.7

44.8

34.6 45.7

61.1

50.0

49.0

41.5

48.2

41.6 5

5.0 65.1

56.0

55.0

76.3

82.9

73.9

72.7

103.8

89.0

86.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

FY15 FY16 FY17 FY18 FY19 FY20E FY21E

Inventory Days Debtor Days Creditor Days Cash cycle


In FY20E, the company reported an exceptional loss

worth | 48.5 crore, pertaining to fire accident in one

of its warehouses in Ghaziabad. Management has

indicated that the loss is adequately insured. We

expect Adjusted PAT to be | 178.0 crore




Exhibit 11: Return ratio trend

20.1

15.2

18.4 20.6

25.9 25.0

21.1

26.9

21.7

18.5

25.6

30.4

38.8

32.4 33.3 34.7

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

FY14 FY15 FY16 FY17 FY18 FY19 FY20E* FY21E

%

RoE RoCE


Exhibit 12: D/E ratio trend

0.1

0.1

0.0

0.0 0.0

0.1

0.1

0.1

0.0

0.0

0.0

0.1

0.1

0.1

0.1

0.1

0.2


(x)


Key Risks & concerns

Foreign currency volatility: Over the years VIP’s gross margins have

been volatile owing to its significant co-relation to foreign exchange

currency movements. VIP majorly imports its requirements of soft

luggage (~ 70% of its overall revenues) from China which imparts

volatility to its margin profile owing to fluctuation in exchange rate. VIP

deals with Chinese vendors in terms of USD. If USD/INR is weak while

USD/Yuan is relatively stronger, then VIP’s gross margins can be

negatively impacted in the short to medium term.

Stiff competition from other organized players: Post reduction in GST

from 28% to 18%, there has been strong growth in the value segment

with all players eyeing growth in the segment. Heightened competition

from other organized players can impact the revenue growth and

profitability of VIP Industries.




Financial Summary

Exhibit 13: Profit & loss statement

(Year-end March) FY18 FY19 FY20E FY21E

Net Sales 1,409.6 1,784.7 1,991.8 2,391.3

Growth (%) 10.5 26.6 11.6 20.1

Total Raw Material Cost 711.7 904.4 1,015.8 1,214.8

Gross Margins (%) 49.5 49.3 49.0 49.2

Employee Expenses 159.4 201.1 219.1 260.7

Other Expenses 345.2 454.5 503.9 605.0

Total Operating Expenditure 1,216.2 1,559.9 1,738.8 2,080.4

EBITDA 193.4 224.7 253.0 310.9

EBITDA Margin 13.7 12.6 12.7 13.0

Interest 0.3 1.5 0.8 0.5

Depreciation 12.9 16.6 22.2 26.6

Other Income 9.3 8.3 8.0 8.0

Exceptional Expense - - (48.5) -

PBT 189.5 214.9 189.4 291.8

Total Tax 62.8 69.7 47.7 73.5

Profit After Tax 126.8 145.3 141.7 218.3


Exhibit 14: Cash flow statement


Profit/(Loss) after taxation 126.8 145.3 141.7 218.3

Add: Depreciation 12.9 16.6 22.2 26.6

Net Increase in Current Assets -127.4 -330.9 33.7 -133.6

Net Increase in Current Liabilities 82.7 118.1 -20.9 55.1

CF from operating activities 94.9 -50.9 176.7 166.4

(Inc)/dec in Investments -3.1 69.9 -18.5 -10.0

(Inc)/dec in Fixed Assets -31.9 -57.7 -53.0 -44.3

Others -1.1 -6.0 -0.8 -0.8

CF from investing activities -36.2 6.3 -72.3 -55.1

Inc / (Dec) in Equity Capital 0.0 0.0 0.0 0.0

Inc / (Dec) in Loan 0.0 86.2 -41.2 -15.0

Others -45.5 -51.1 -52.9 -78.6

CF from financing activities -45.5 35.0 -94.0 -93.6

Net Cash flow 13.2 -9.6 10.4 17.7

Opening Cash 10.6 23.8 14.2 24.6

Closing Cash 23.8 14.2 24.6 42.3


Exhibit 15: Balance Sheet


Equity Capital 28.3 28.3 28.3 28.3

Reserve and Surplus 460.8 553.1 643.8 783.5

Total Shareholders funds 489.1 581.4 672.1 811.8

Total Debt - 86.2 45.0 30.0

Non Current Liabilities 0.7 2.6 0.7 0.7

Source of Funds 489.8 670.1 717.8 842.5

Gross block 99.4 155.9 205.9 245.9

Less: Accum depreciation 24.4 44.3 60.9 83.1

Net Fixed Assets 75.0 111.6 145.0 162.8

Capital WIP 2.7 5.7 3.0 3.0

Intangible assets 1.6 3.0 3.1 3.1

Investments 72.9 3.0 21.5 31.5

Inventory 316.5 527.4 518.4 602.7

Cash 23.8 14.2 24.6 42.3

Debtors 176.6 298.6 272.8 321.0

Loans & Advances & Other CA 90.5 88.5 89.5 90.6

Total Current Assets 607.4 928.7 905.4 1,056.7

Creditors 212.5 318.4 305.6 360.3

Provisions & Other CL 70.4 82.6 74.5 74.9

Total Current Liabilities 282.9 401.0 380.1 435.2

Net Current Assets 324.5 527.7 525.3 621.5

LT L& A, Other Assets 13.1 19.1 19.9 20.6

Other Assets 0.0 0.0 0.0 0.0

Application of Funds 489.8 670.1 717.8 842.5


Exhibit 16: Key ratios


Per share data (|)

EPS 9.0 10.3 10.0 15.4

Cash EPS 9.9 11.5 11.6 17.3

BV 34.6 41.1 47.6 57.5

DPS 3.1 3.8 3.6 5.6

Cash Per Share 1.7 1.0 1.7 3.0

Operating Ratios (%)

EBITDA margins 13.7 12.6 12.7 13.0

PBT margins 13.4 12.0 9.5 12.2

Net Profit margins 9.0 8.1 7.1 9.1

Inventory days 82.0 107.9 95.0 92.0

Debtor days 45.7 61.1 50.0 49.0

Creditor days 55.0 65.1 56.0 55.0

Return Ratios (%)

RoE 25.9 25.0 21.1 26.9

RoCE 38.8 32.4 33.3 34.7

Valuation Ratios (x)

P/E 51.8 45.2 46.4 30.1

EV / EBITDA 33.5 29.6 26.0 21.0

EV / Sales 4.6 3.7 3.3 2.7

Market Cap / Revenues 4.7 3.7 3.3 2.7

Price to Book Value 13.4 11.3 9.8 8.1

Solvency Ratios

Debt / Equity 0.0 0.1 0.1 0.0

Debt/EBITDA 0.0 0.4 0.2 0.1

Current Ratio 2.1 2.3 2.3 2.3

Quick Ratio 0.9 1.0 1.0 0.9





RATING RATIONALE

ICICI Direct endeavors to provide objective opinions and recommendations. ICICI Direct assigns ratings to its

stocks according to their notional target price vs. current market price and then categorizes them as Buy, Hold,

Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined as

the analysts' valuation for a stock

Buy: >15%

Hold: -5% to 15%;

Reduce: -15% to -5%;

Sell: <-15%

Pankaj Pandey Head – Research [email protected]

ICICI Direct Research Desk,

ICICI Securities Limited,

1st Floor, Akruti Trade Centre,

Road No 7, MIDC,

Andheri (East)

Mumbai – 400 093

[email protected]




ANALYST CERTIFICATION

I/We, Bharat Chhoda, MBA; Cheragh Sidhwa 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. It is also confirmed that above mentioned

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