Report By: [email protected] Bagaria – [email protected] Page 2 Source:...

1 | P a g e

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Report By:

Surbhi Bagaria – [email protected]

Source: Company, www.dynamiclevels.com

Piramal Enterprises Ltd - Transforming Consistently. Delivering value

Company Overview and Stock Price 3

Business Segments 4

FY 2016 Highlights 6

Evolution of Business Segments 7

Company Financials 9

Peer Comparison 13

Shareholding Pattern 14

Brands of PEL 15

Investment Rationale 16


Company’s Overview and Stock Price

Piramal Enterprises Ltd(PEL) is a leading Indian business conglomerate, with its presence in Healthcare, Financial Services and Information Management Sectors, across 100 countries and manufacturing bases in India, US, Europe and Canada.

PEL is among top 10 integrated global CDMO’s offering both APIs and Formulations.

Among the top providers of financing to real estate developers in India.

Among top 3 players in Inhalation Anesthesia globally.

Among top 7 OTC players in India.

Chart Hypothesis: Above is the weekly price chart of PEL for last 1 yr, in which we can see that it made a recent high of 2097 and has given correction of 10% from there and taken support of 1800 levels.

COMPANY PROFILE OF JUBILANT

Date of Incorporation 26-Apr-1947 Date of Listing 03-Nov-1994

Management Name Designation Ajay Piramal Chairman Nandini Piramal Executive Director Vijay Shah Executive Director Raghunath Mashelkar

Independent Director

Siddharth (Bobby) Mehta


S Ramadorai Independent Director N Vaghul Independent Director Keki Dadiseth Independent Director Gautam Banerjee Independent Director Deepak M Satwalekar


Goverdhan Mehta Independent Director Swati Piramal Vice Chairperson

Registered Office Address Piramal Tower,Ganpatrao Kadam

Marg,Lower Parel,400013,Mumbai, Maharashtra,India

Website http://www.piramal.com

BROAD INDUSTRY Diversified PE ratio 33 MARKET CAP

(RS. CR.) 32561.79

INDUSTRY Pharma, IT &

Financial Services % Pledge 0 FV/ML 42401

GROUP Piramal Ajay Group NSE CODE PEL 52 WEEK

HIGH/LOW (RS.) 2097/832

LTP (RS.) 1910 INST.INVESTORS

(%) 30.8

PROMOTERS (%)

51.58


Business Segments:

Healthcare:

Pharma Solutions (PPS):

Among the top integrated global Contract Development and

Manufacturing Organisations (CDMOs) offering both APIs and

Formulations

10 manufacturing facilities across the eastern and western

parts of the world

All key sites are periodically approved by USFDA

Address customers’ needs across the drug life cycle

Serve most of the top 7 global pharma companies

World’s leader in Antibody Drug Conjugates (ADCs)

Critical Care (PCC):

Among top three players in Inhalation Anesthesia segment globally

Only global company with all four generations of inhalation anesthetic products

Rapidly grew its global market share from 3% in FY2009 to 12% currently

Consumer Products (OTC):

Strong brand portfolio - include key brands such as Saridon, i-

pill and Lacto Calamine

Most brands are among the top two in their respective

markets

In India’s OTC market, the business has moved up from the

40th position in 2007 to 7th position currently

Reaching to 3,50,000 outlets across 1,500 towns with 20,000+

population

JV with Allergan is the India leader in ophthalmology


Financial Services: PEL’s Financial Services segment offers a complete suite of financial products to meet the diverse needs of its customers. The Company has created its unique positioning in the financial services space through its strong presence in the following sub-segments:

Wholesale Lending:

Lending to real estate developers and under special situation opportunities (in various sectors including renewables, cement, transportation, infrastructure, etc.)

Largely invested in Mumbai, Pune, Bengaluru, Chennai, NCR and Hyderabad

Entered 145 transactions with 81 leading developers

Entered into Construction Finance during FY2015

Managed by highly talented and experienced teams of 140 professionals, with a healthy mix of investing and operating experience

Strategic alliances with large reputed partners like APG and CPPIB

60% of the team is engaged in monitoring of assets

Alternative Asset Management:

Currently manages 7 funds, 3 third party mandates and 2 managed accounts

Invested in 57 projects across 7 cities with 25 leading developers

Information Management: PEL’s Information Management business is a global, market leading, decision support platform in the healthcare information services sector. Decision Resources Group: PEL's Information Management business provides indispensable insights and business oriented analytics, enabling customers to make informed investment and cost containment decisions in each phase of the product life cycle.

Portfolio is structured into three product categories - Data and Analytics, Research Products and Consulting Services.

Headquartered in the US, with presence in Canada, Europe, Hong Kong, Japan, China and India

Provider of gold standard solutions for healthcare customers, for more than two decades

Clients include most of the top 50 pharma companies Strong revenue visibility 75% of revenue is recurring in nature 97% revenue retention by value across entire customer base


FY 2016 Highlights:

Healthcare:

Pharma Solutions:

Recognised multiple times at world-class forums for good

performance in quality, reliability and compliance

Successfully integrated Coldstream acquisition - currently

investing in its capability & capacity expansion

Capacity expansion at Discovery Services and Grangemouth

completed

Critical Care:

Significantly improved Sevoflurane market share in UK (42%)

and Japan (56%)

Launched co-promotion of two of Cumberland’s branded

hospital products in the United States

Consumer Products:

Acquired “Little’s” - a baby care brand portfolio

Acquired five brands from Organon India & MSD - Include

leading brands like Naturolax, Lactobacil & Farizym

Entered an agreement to acquire four brands from Pfizer Ltd in

May 2016

Expanded distribution network to 1,500 towns from 481 towns

till last year

Financial Services

Loan Book grew by 174% to 13,048 Crores as on 31 Mar 2016 vs. 4,766 Crores as on 31 Mar 2015

Entry into Construction Finance enabled significant scale up in the loan book - Now 42% of the Real Estate loan book

Entered construction finance for commercial projects as well Special Situations loan book grew to 1,515 Crores as on 31 Mar

2016 vs. 425 Crores as on 31 Mar 2015 Among best-in-class NPA performance.

Information Management

Entry in payer market through acquisition of Adaptive Software

Entry in provider market through acquisition of HBI

Opened two offices in India - On target with 160+ positions on

boarded


Evolution of Pharma Solutions Business The Company has aggressively grown its Pharma Solutions business since 2003. With a series of acquisitions and organic growth initiatives, PEL created one of the top integrated CDMOs offering services both in APIs and Formulations. Now, its services comprise the entire drug-lifecycle, right from discovery to development and commercial manufacturing, to off-patent supplies of APIs and Formulations. Over the years, it has also added niche products including antibody drug conjugates and sterile injectables, among others.

Evolution of Information Management Business In June 2012, PEL entered into Information Management business through the acquisition of DRG. In 2008, DRG had 10 offices across 5 countries. The business has expanded significantly over years and now has 17 offices across 6 countries. Post the acquisition of DRG, the business was further strengthened through various organic and inorganic initiatives. Growth through acquisition is fundamental to such businesses and has been an essential component of DRG’s evolution. The Company has made few acquisitions over last few years that enabled it to expand its offerings and addressable market size. From providing services to the Lifesciences industry earlier, the Company now also caters to the provider and payer markets. PEL’s Information Management business, Decision Resources Group (DRG), is a market-leading decision-support platform in the healthcare information services space. DRG provides indispensable insights to life sciences companies as well as healthcare providers and payers through a variety of high value-added data and analytics, research reports, and knowledge-based services. These offerings enable customers to make informed investment, cost containment and strategic business decisions in their chosen markets. DRG’s products and services are built around proprietary data, algorithms, primary research and domain expertise. Most of its branded product lines have a leading market share in their respective niches.

Evolution of Financial Services Business Over the years, PEL has created a robust Financial Services portfolio. The total amount invested under financial services (includes on-balance sheet & off-balance sheet) has grown from `4,207 Crores in FY2012 to `26,348 Crores. The Company has correspondingly delivered a strong trend of income growth over last few years. The Company has also demonstrated a solid exit track record, with cumulative exits and repayments of `8,532 Crores. Every year, it has been consistently expanding its product portfolio to boost its growth and optimise the overall risk-return profile of its loan book. The total investments made by PEL under its Financial Services segment also include `4,583 Crores invested in various companies of Shriram Group.


Evolution of Consumer Products Business Post dissolution of JV with Boots, PEL independently started its Consumer Product Division in 2007. At that time, the business had only three brands in its portfolio, catering to just 24,000 outlets through a team of 80 people. It was ranked 40th among OTC companies in India. Since then, the business has grown significantly, both organically and inorganically. Growth of existing brands, launch of new products and acquisition of some of the top brands have boosted the Company’s revenue and business positioning in the industry. The business has grown at a CAGR of 21% over FY2008-2016 as against 12% CAGR reported by the addressable market. The ranking of the business jumped from 40th position in 2007 to 7th position currently. The Company now has 11 brands in its portfolio with most of them being No. 1 or No.2 in their respective categories, and six of them being among the top 100 OTC brands in India. It services 3,50,000 outlets on a weekly basis through a strong field force of 2,000 people. To leverage its India-wide distribution network, PEL is in a mode of rapidly adding more products – organically and inorganically. Apart from launching new brands, the Company has recently acquired 3 brand portfolios to scale up the business to achieve the target to be among the top 3 players by 2020.

Evolution of Critical Care Business The acquisition of ICI Limited in 2002 enabled PEL to enter into the business of Inhalation Anaesthesia. Since then, the Company made a few more value-accretive acquisitions until 2009. These acquisitions were critical in shaping the Company’s offerings, providing access to global markets and integrating state-of-the-art manufacturing capabilities. Since 2009, PCC has grown largely organically at a robust CAGR of 31% over FY2009-FY2016, taking its revenues from `132 Crores in FY2009 to `876 Crores in FY2016. The organic growth has resulted from entering into newer geographies, expanding into existing geographies, constantly achieving cost efficiencies and thereby improving market share. As a result, PCC’s market share has grown from 3% in FY2009 to 12% in FY2016. Its market share in the US increased from 20% in FY2011 to 30% in FY2016.


Company Financials

Jun-16 Mar-16 % Growth

Quarterly Quarterly (QoQ)

Net Sales/Income from operations 1,761.05 1,714.21 2.73%

Other Operating Income 15.17 19.3 -21.40%

Total Income From Operations 1,776.22 1,733.51 2.46%

Increase/Decrease in Stocks -30.92 19.25

Consumption of Raw Materials 307.55 314.26 -2.14%

Purchase of Traded Goods 31.71 46.48 -31.78%

Employees Cost 432.92 399.59 8.34%

R & D Expenses 24.28 39.77 -38.95%

Depreciation 76.77 90.05 -14.75%

Other Expenses 372.53 446.52 -16.57%

Total Expenditure 1,214.84 1,355.92 -10.40%

Operating Profit 561.38 377.59 48.67%

Other Income 53.01 39.18 35.30%

P/L Before Int., Excpt. Items & Tax 614.39 416.77 47.42%

Interest 395.4 303.88 30.12%

P/L Before Exceptional Items & Tax 218.99 112.89 93.99%

Exceptional Item -- 72.36

P/L Before Tax 218.99 185.25 18.21%

Tax 46.06 37.6 22.50%

PAT 172.93 147.65 17.12%

Minority Interest -- 0.07

Share Of P/L Of Associates 58 32.52 78.35%

Net Profit/(Loss) For the Period 230.93 180.24 28.12%

Equity Share Capital 34.51 34.51 0.00%

EPS (Rs.) 13.38 10.44 28.16%


Balance Sheet FY-16 FY-15 % Growth

EQUITIES AND LIABILITIES

SHAREHOLDERS FUNDS

Equity Share Capital 34.51 34.51

Total Share Capital 34.51 34.51

Reserves and Surplus 12,387.59 11,701.42 5.86%

Total Reserves and Surplus 12,387.59 11,701.42 5.86%

Total Share holders Funds 12,422.10 11,735.93 5.85%

Minority Interest 33.68 29.11 15.70%

Long Term Borrowings 7,581.20 3,787.48 100.16%

Deferred Tax Liabilities [Net] 0 2.61 -100.00%

Other Long Term Liabilities 49.7 7.66 548.83%

Long Term Provisions 312.71 121.17 158.08%

Total Non-Current Liabilities 7,943.61 3,918.92 102.70%

Short Term Borrowings 6,869.08 2,829.32 142.78%

Trade Payables 524.33 509.57

Other Current Liabilities 2,962.04 1,400.84 111.45%

Short Term Provisions 80.78 512.07 -84.22%

Total Current Liabilities 10,436.23 5,251.80 98.72%

Total Capital And Liabilities 30,835.62 20,935.76

Tangible Assets 1,344.05 1,146.98 17.18%

Intangible Assets 942.98 679 38.88%

Capital Work-In-Progress 297.99 239.53 24.41%

Intangible Assets Under Development 68.14 37.61 81.18%

Fixed Assets 2,653.16 2,103.12 26.15%

Non-Current Investments 14,172.84 6,820.88 107.79%

Deferred Tax Assets [Net] 14.06 29.48 -52.31%

Long Term Loans And Advances 3,010.43 1,542.19 95.20%

Other Non-Current Assets 522.25 278.85 87.29%

Total Non-Current Assets 26,086.82 16,013.77 62.90%

Current Investments 627.38 947.01 -33.75%

Inventories 735.44 674.94 8.96%

Trade Receivables 926.21 831.73 11.36%

Cash And Cash Equivalents 441.79 460.08 -3.98%

Short Term Loans And Advances 1,865.25 1,932.60 -3.48%

Other Current Assets 152.73 75.63 101.94%

Total Current Assets 4,748.80 4,921.99 -3.52%

Total Assets 30,835.62 20,935.76 47.29%


Ratios FY 2016 FY 2015 Growth %

PROFITABILITY RATIOS

PBDIT Margin (%) 31.99 22.24 43.84%

PBIT Margin (%) 27.03 16.58

PBT Margin (%) 13.52 59.25 -77.18%

Net Profit Margin (%) 11.96 52.51

NP After MI And SOA Margin (%) 14.38 55.63 -74.15%

Return on Networth / Equity (%) 7.65 24.28 -68.49%

Return on Capital Employed (%) 4.65 18.17 -74.41%

Return On Assets (%) 3.08 13.61

Long Term Debt / Equity (X) 0.61 0.32

Total Debt / Equity (X) 1.16 0.56

Asset Turnover Ratio (%) 21.43 24.46 -12.39%

LIQUIDITY RATIOS

Current Ratio (X) 0.45 0.93 -51.61%

Quick Ratio (X) 0.38 0.8 -52.50%

Inventory Turnover Ratio (X) 8.99 7.59 18.45%

Dividend Payout Ratio (NP) (%) 31.76 12.11 162.26%

Dividend Payout Ratio (CP) (%) 23.62 10.99 114.92%

Earning Retention Ratio (%) 68.24 87.89 -22.36%

Cash Earning Retention Ratio (%) 76.38 89.01 -14.19%

COVERAGE RATIOS

Interest Coverage Ratio (%) 1.9 1.66

Interest Coverage Ratio (Post Tax) (%) 1.79 0.98 82.65%

VALUATION RATIOS

Enterprise Value (Cr.) 31919.21 21180.43 50.70%

EV / Net Operating Revenue (X) 4.83 4.13 16.95%

EV / EBITDA (X) 15.09 18.58 -18.78%

MarketCap / Net Operating Revenue (X) 2.7 2.93 -7.85%

Retention Ratios (%) 68.23 87.88 -22.36%

Price / BV (X) 1.44 1.28 12.50%

Price / Net Operating Revenue (X) 2.7 2.93 -7.85%

Earnings Yield 0.05 0.19 -73.68%


Cash Flow Statement FY-16 FY-15

Net Profit/Loss Before Extraordinary Items And Tax 848.51 339.2

Net CashFlow From Operating Activities -6777.33 -2331.91

Net Cash Used In Investing Activities -876.78 6177.07

Net Cash Used From Financing Activities 7619.87 -3864.63

Foreign Exchange Gains / Losses 8.02 3.03

Adjustments On Amalgamation / Merger / Demerger And Others 1.52 13.21

Net Inc/Dec In Cash And Cash Equivalents -24.7 -3.23

Cash And Cash Equivalents Begin of Year 447.01 325.18

Cash And Cash Equivalents End Of Year 422.31 321.95


Peer Comparison:

Comparative Ratio Analysis

COMPANY NAME NPM(%) AVERAGE 3-YEARS

RONW(%) AVERAGE 3-YEARS

Piramal Enterprises 11.96 17.80 7.65 10.64

Sun Pharma. 20.62 21.58 15.01 16.57

Dr. Reddy's Labs 13.70 14.65 18.38 22.35

Lupin Ltd. 16.04 17.25 20.67 24.75

Aurobindo Pharma 14.23 13.87 28.08 29.97

Valuation

COMPANY NAME CURRENT PRICE(RS.)

P/E P/BV MCAP/REVENUES

Piramal Enterprises 1893.45 34.36 2.63 4.94

Sun Pharma. 770.50 39.31 5.90 6.56

Dr. Reddy's Labs 3189.75 25.29 4.65 3.47

Lupin Ltd. 1513.9 30.01 6.21 4.81

Aurobindo Pharma 858.45 25.3 7.12 3.61

Financial Comparision

COMPANY NAME REVENUES (RS CR.)

3- YEAR CAGR(%)

PBDIT (RS CR.)

3- YEAR CAGR(%) PAT (RS CR.)

3- YEAR CAGR(%)

Piramal Enterprises 6,609.89 23.34 848.51 -69.6 950.6 -61.04

Sun Pharma. 28,269.71 35.71 7,450.45 14.93 4,715.91 16.47

Dr. Reddy's Labs 15,697.80 9.67 3,137.20 12.22 2,151.40 12.1

Lupin Ltd. 14,208.47 13.78 3,433.03 21.25 2,270.69 19.97

Aurobindo Pharma 13,896.08 33.35 2,722.46 93.66 1,982.00 88.82

Proportionate Distribution (%)

Particulars Total Piramal Enterprises

Sun Pharma.

Dr. Reddy's Labs Lupin Ltd. Aurobindo Pharma (Rs Cr.)

Revenue 78,681.95 8.40% 35.93% 19.95% 18.06% 17.66%

PBDIT 17,591.65 4.82% 42.35% 17.83% 19.52% 15.48%

PAT 12,070.60 7.88% 39.07% 17.82% 18.81% 16.42%


Shareholding Pattern

Shareholding Pattern Jun-16 Mar-16 Dec-16

Promoter and Promoter Group (%) 51.57 51.57 0.37

Indian 51.57 51.57 0.37

Foreign NIL NIL NIL

Public Shareholding

Institutions (%) 30.80 30.47 30.64

Mutual Funds 0.29 0.38 0.10

Foreign Portfolio Investors 27.40 26.97 5.53

Financial Institutions/Banks (%) NIL NIL NIL

Insurance 0.71 0.72 0.84

Others NIL NIL 21.77

Non Institutions (%) 16.41 16.74 16.60

Overseas Depositories (holding DRs) (balancing figure) NIL NIL NIL

Others NIL NIL NIL

Total no. of shares (cr.) 17.26 17.26 17.26

Promoter Holding Pledged (%) NIL NIL NIL

Scheme Name Value (Rs. Cr)

Holding %

Aug-16 Jul-16 Jun-16

Birla Sun Life Equity Fund 27.4 0.94 0.93 0.96

Birla Sun Life Manufacturing Equity Fund 15.92 1.87 1.56 1.73

UTI Growth Sector Fund - Pharma and Healthcare 13.63 4.07 3.53 3.92

Edelweiss Absolute Return Fund 4.4 1.08 0.93 0.97

Edelweiss Diversified Growth Equity Top 100 (E.D.... 2.41 2.49 2.08 2.2

Edelweiss ELSS Fund 2.31 3.36 3 2.86

Taurus Tax Shield 2.14 3.63 3.19

BOI AXA Mid Cap Equity & Debt Fund 1.65 2.39 2.21

Taurus Discovery Fund 1.41 3.76 3.37 3.2

Motilal Oswal MOSt Shares Midcap 100 ETF 0.95 2.34 2.13 2.05

Taurus Bonanza Fund 0.68 2.66 2.35

LIC MF Balanced Fund 0.61 1.5 1.34 1.29

Shriram Equity and Debt Opportunities Fund 0.28 0.64 0.38 0.35

R* Shares Dividend Opportunities ETF 0.27 1.91 1.78 1.7

ICICI Prudential Midcap Select ETF 0.23 3.11 2.82

Edelweiss Prudent Advantage Fund 0.16 1.14 0.88 0.82

Taurus Infrastructure Fund 0.11 2.13 1.89 1.76

BOI AXA Regular Return Fund 0.11 0.27

Principal Index Fund - Midcap 0.07 2.35 2.12 2.04


Brands of PEL

The business has a strong brand portfolio with most of its brands among the top two in their respective markets. PEL’s six brands are among India’s top 100 OTC brands. Positioning of the major brands are as follows: 1. Saridon – India's largest-selling headache analgesic brand with over 14% of the market share and rated the largest oral analgesic brand by value. It is recognised as a ’Super Brand’ in the list of top 100 brands. Saridon is Piramal Consumer Product's first `100 Crore+ brand and is growing rapidly. 2. Lacto Calamine – Recognised as a ’Super Brand’, Lacto Calamine has strong footprints in the skincare market with its unique oil-control formulation. It is available in various formats, such as lotion, facewash, sunscreen and anti-aging cream. Being the oldest calamine brand in India, Lacto Calamine continues to be the largest brand among calamine skin lotions. 3. i-pill/i-know – i-pill was acquired from Cipla. It is the second-largest brand in the emergency contraceptive market. i-know is India's first ovulation strip and extends i-pill equity to other adjacent markets. 4. Polycrol – An antacid brand, which is a distinct leader in the Eastern region and among top three brands at an India level. Strong equity exists for the brand. It is going through a revamping exercise to target leadership beyond east. 5. Tetmosol – India's number one doctor-prescribed soap for skin-related disorders. It has experienced a healthy double-digit growth over last few years.


Investment Rationale:

PEL plans to become a Top 3 player in the OTC market by 2020: PEL’s Consumer Product business

developed a strategy in 2012 and has grown substantially over the last few years as a result of successful

execution of the same.

Evolution of Consumer Products Business: The ranking of the business jumped from 40th position in 2007

to 7th position currently. The Company now has 11 brands in its portfolio with most of them being No. 1 or

No.2 in their respective categories, and six of them being among the top 100 OTC brands in India. It

services 3,50,000 outlets on a weekly basis through a strong field force of 2,000 people.

To leverage its India-wide distribution network, PEL is in a mode of rapidly adding more products –

organically and inorganically. Apart from launching new brands, the Company has recently acquired 3

brand portfolios to scale up the business to achieve the target to be among the top 3 players by 2020.

Strong Brand Presence: Saridon continues to maintain number one rank in headache category. Lacto

Calamine and i-pill continue to sustain their demand in their respective categories by adapting a focused

geographical approach strategy. ‘Quikkool’ became a respected brand for mouth ulcer in less than a year

of launch. Caladryl doubled its distribution during the year.

Strong positioning in Wholesale Lending: PEL is one of the largest deployers of capital across all stages of

the life-cycle of residential real estate projects. During FY2016, it announced its intention to initiate

funding towards commercial spaces as well. PEL is also among the top providers of structured mezzanine

funding in India. Its exposure is well diversified across geographies as well as product types in India.

PEL is the only Indian company to have an integrated platform providing an exposure to the entire capital

stack across real estate.

Investments in Shriram Group: To strengthen its presence in the financial services industry, PEL aims at

being in a well-diversified play. Wholesale lending is done in-house and exposure to retail is through its

investments in the Shriram Group of Companies. PEL’s long-term partnership with Shriram diversifies its

exposure into the retail and SME customer segments through its lending business, life and general

insurance, distribution, broking and retail asset management.

Strong operating performance in Financial Services during the year: Income from Financial Services was

99% higher at 1,864 Crores for FY2016, from 937 Crores in FY2015. The growth was primarily driven by

increase in the size of loan book. Loan book grew by 174% to 13,048 Crores from 4,766 Crores in FY2015,

aided by entry into Construction Finance. Construction financing now constitutes 42% of the Real Estate

loan book. Asset quality continued to remain robust with a GNPA ratio of just 0.91%. Gross Assets under

Management grew to 8,717 Crores during the year. The Company exited almost 100% of corpus in all 3

vintage funds

We recommend BUY in Piramal Enterprises @ 1900-1910 with the Target of 2400 as Piramal

Enterprises is aiming at huge expansion. Piramal Enterprises has strong track record of

generating superior shareholder returns over the last 3 decades which was higher than the

benchmark indices.

https://www.dynamiclevels.com/en/piramal-enterprises-share-price


Disclaimer: Research Disclaimer and Disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014. Dynamic Equities Pvt. Ltd. is a member of National Stock Exchange of India Ltd. (NSEIL), Bombay Stock Exchange Ltd (BSE), Multi Stock Exchange of India Ltd (MCX-SX) and also a depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd.(CDSL). Dynamic is engaged in the business of Stock Broking, Depository Services, Investment Advisory Services and Portfolio Management Services. Dynamic Equities Pvt. Ltd. is holding company of Dynamic Commodities Pvt. Ltd. , a member of Multi Commodities Exchange (MCX) & National Commodity & Derivatives Exchange Ltd.(NCDEX). We hereby declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on for certain operational deviations. Answers to the Best of the knowledge and belief of Dynamic/ its Associates/ Research Analyst who prepared this report

DYANMIC/its Associates/ Research Analyst/ his Relative have any financial interest in the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have any other material conflict of interest at the time of publication of the research report or at the time of public appearance? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have managed or co-managed public offering of securities for the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation or other benefits from the Subject Company or third party in connection with the research report? No

DYANMIC/its Associates/ Research Analyst/ his Relative have served as an officer, director or employee of the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have been engaged in market making activity for the subject company? No

General Disclaimer: - This Research Report (hereinafter called “Report”) is meant solely for use by the recipient and is not for circulation. This Report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice for the purpose of purchase or sale of any security, derivatives or any other security through Dynamic nor any solicitation or offering of any investment /trading opportunity on behalf of the issuer(s) of the respective security (ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the readers. No action is solicited based upon the information provided herein. Recipients of this Report should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. This Report has been prepared on the basis of publicly available information, internally developed data and other sources believed by Dynamic to be reliable. Dynamic or its directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information / opinions / views. While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of Dynamic shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including loss profits arising in any way whatsoever from the information / opinions / views contained in this Report. The price and value of the investments referred to in this Report and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for future performance. Dynamic levels do not provide tax advice to its clients, and all investors are strongly advised to consult with their tax advisers regarding taxation aspects of any potential investment. Opinions expressed are our current opinions as of the date appearing on this Research only. We do not undertake to advise you as to any change of our views expressed in this Report. User should keep this risk in mind and not hold dynamic levels, its employees and associates responsible for any losses, damages of any type whatsoever. Dynamic and its associates or employees may; (a) from time to time, have long or short positions in, and buy or sell the investments in/ security of company (ies) mentioned herein and it may not be construed as potential conflict of interest with respect to any recommendation and related information and opinions. Without limiting any of the foregoing, in no event shall Dynamic and its associates or employees or any third party involved in, or related to computing or compiling the information have any liability for any damages of any kind. We and our affiliates/associates, officers, directors, and employees, Research Analyst(including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company (ies) discussed herein or act as advisor to such company (ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of Research Report. Dynamic may have proprietary long/short position in the above mentioned scrip(s) and therefore may be considered as interested. The views provided herein are general in nature and does not consider risk appetite or investment objective of particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with Dynamic. Dynamic Equities Pvt. Ltd. are also engaged in Proprietary Trading apart from Client Business.

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