MSFL - Metals _ Mining Q3FY12 Preview

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                                                                                                                                                                MSFL Research
                                                                                                                  Metals & Mining – Q3FY12 Preview
BSE Sensex & BSE Metal                                                                                            Problem of Plenty!!!!!
                                 BSE Sensex                           BSE Metal
110                                                                                                               Q2FY12 ended with many problems and almost all the problems have increased further in
100                                                                                                               Q3FY12. Companies have found it extremely tough to maintain their utilization levels and to
 90                                                                                                               manage the extremely volatile currency. However Q3FY12 numbers would be better than
 80
                                                                                                                  anticipated earlier as companies are able to hold on higher prices inspite of lull demand due to
                                                                                                                  rupee depreciation.
 70

 60                                                                                                               Stable realization lessen contraction of EBITDA/ton for ferrous players
 50                                                                                                               Inspite of lull demand, steel prices remained more or less stable during the quarter due to
                                                                                                                  ongoing mining crisis in Karnataka. Stable realizations will help companies to somewhat mitigate
                                                                     Aug-11




                                                                                                Nov-11
                                                   Jun-11
                                                            Jul-11




                                                                                                         Dec-11
                                          May-11




                                                                                       Oct-11
                                 Apr-11
                        Mar-11
      Jan-11

               Feb-11




                                                                              Sep-11




                                                                                                                  higher raw material prices. EBITDA/ton of ferrous players are expected to fall by ` 1000-1500/ton
                                                                                                                  during Q3FY12.
Relative Performance %
                                                            1M                   3M                      6M       LME and cost blues for Non Ferrous
BSE Sensex                                             -7.9                     -3.9                -17.3         Base Metals prices have significantly corrected during the quarter due to credit crisis in Europe
BSE Metals                                         -14.3                      -11.4                 -38.3         and credit tightening in China. Lower LME price would be somewhat mitigated by higher volume
Tata Steel                                         -18.7                      -13.7                 -43.4         however margins is set to fall for all companies due to higher input cost and adverse movement
JSW Steel                                          -15.6                        -2.3                -39.1         in currency.
SAIL                                                   -6.9                   -19.1                 -41.0         Mining segment would be better
JSPL                                               -14.0                        -3.3                -29.4         Mining segment is set to do better in this quarter due to higher production and favorable
Sesa Goa                                           -17.4                      -19.3                 -44.6         currency movement. CIL is set to increase its volume and firm prices will help the company to
Sterlite Inds                                      -17.4                      -17.0                 -46.8         deliver better numbers. Rupee depreciation will provide cushion for Sesa Goa and will help the
Hind Zinc                                              -8.3                       2.0               -15.4         company to somewhat offset impact of lower volume and realization.
Hindalco Inds                                      -17.0                        -9.6                -39.8
                                                                                                                  Outlook
NALCO                                                  -3.4                   -13.3                 -36.9
                                                                                                                  Slowing global economy has taken a serious toll on Metal and Mining companies and the
Adhunik Met’s                                          -1.8                   -14.3                 -54.4
                                                                                                                  conditions are expected to remain tepid at least in next two quarters. However except Tata Steel,
Prakash Inds                                       -19.1                      -42.8                 -57.3
                                                                                                                  all other Indian companies have been impacted by India specific issues. The shadow of global
Coal India                                             -6.8                     -7.4                -18.8
                                                                                                                  slowdown is yet to come in Indian metals and mining space. We believe that ongoing issues like
                                                                                                                  mining mess, policy paralysis and slowing economy are structural in nature and the condition are
                                                                                                                  going to remain stressed at least in next two quarters. Thus we continue to maintain our
                                                                                                                  negative stance on sector. However Inspite of directly exposed to Europe, Tata Steel remains our
                                                                                                                  prefer pick due to structurally changing business model.
                                                                                                                  Summary Financial (Q3FY12E)
                                                                                                                  ` (mln)         Net Sales    y-o-y    q-o-q   EBITDA      y-o-y    q-o-q     PAT      y-o-y    q-o-q
                                                                                                                  Tata Steel(C)    321,026    12.2%     -1.2%    20,659   -39.7%    -24.9%    2,428   -75.8%     14.3%
                                                                                                                  JSW Steel         84,351    41.4%      3.7%   11,232    10.5%     -19.4%    1,948   -33.2%    -129.1%
      Tanuj Rastogi
                                                                                                                  SAIL             114,656     2.9%      5.8%   14,561    -18.9%      9.7%    8,903   -19.6%     80.0%
      tanuj.rastogi@msflibg.in
                                                                                                                  JSPL              39,786    25.6%     -9.7%   19,045    19.1%      11.8%   10,962   15.3%      25.2%
      (+ 91 22 3094 7134)
                                                                                                                  Sesa Goa          20,758    -7.2%    164.7%    9,464    -23.1%    264.0%    6,354   -40.4%          -
                                                                                                                  Sterlite          97,780    17.9%     -3.5%   25,199    27.4%       1.5%   13,322   21.0%      33.5%
      Rohit Vaja                                                                                                  Hind Zinc         29,345    12.8%     13.1%   15,317      1.6%      4.6%   14,164     9.8%      5.3%
      rohit.vaja@msflibg.in                                                                                       Hindalco(s)       55,439    -6.3%    -10.9%    5,885    -20.5%    -12.1%    3,547   -22.9%     -29.4%
      (+ 91 281 2481313)                                                                                          NALCO             17,702    21.7%     11.8%    4,611    32.6%     202.2%    3,264   45.7%     134.3%
                                                                                                                  Adhunik Met        4,931    13.3%     10.1%    1,215    -17.1%     50.9%      93    -82.8%    -269.6%
      January 3, 2012                                                                                             Prakash Ind        4,683    22.5%      2.2%      766      7.0%     -0.3%     515     -5.1%      -6.0%
                                                                                                                  COAL India       159,572    25.7%     21.4%   42,962    27.3%      73.4%   38,381   46.2%      48.9%


                                                                                                    Institutional Business Group, MSFL
                                                       @p-sec, 306, Gresham Assurance House, 132, Mint Road, Fort, Mumbai – 400 001 India
                                                                                    Tel + 91 22 30947100 / 102 www.marwadionline.com
                                                         MSFL Research
Major Events of Q3FY12
Q3FY12 was very event full quarter for the Indian metal space. There were a lot of positive and negative
events that happened during the quarter. The following are the key events-

    Japanese Steel producers have settled coking coal contract at $ 235/ton for Q4FY12 down $ 50/ton
     q-o-q due to slowing global economy.
    The government introduced Mines & Minerals Development and Regulation (MMDR) Bill in the
     Parliament. The bill has proposed that non-coal mining companies should pay an amount equal to
     the royalty they pay to states or 100% royalty and coal mining companies should pay 26% of their
     net profit to the affected populace.
    Tata Steel has temporarily shut down part of its hot strip mill in South Wales and has cut 115 jobs at
     the plant due to poor demand within Britain.
    Moody’s Investors Service downgraded the rating on Tata Steel UK Holdings to negative based on
     weakening economic outlook in Europe and deteriorating condition in the European steel sector.
    The promoters of JSW Steel did not convert 17.5mln warrants because share was trading at steep
     discount from the conversion price of ` 1210.
    Jindal Power got environmental clearance for construction of 2,400 MW expansion project at
     Tamnar, Chhattisgarh and JSPL commissioned SMS Concast continuous billet caster in Raigarh
     during quarter.
    Mozambique approved JSPL to build a 2,640 MW coal-fired power plant at estimated to cost $ 3bln
     and expected to start in 2015.
    Jindal Shadeed Iron & Steel announced to start work on building a massive steel melting shop, with
     an envisaged investment of $ 400mln. The steel melting shop will have a capacity to produce 2 mt.
    Posco will have full operational control in the JV with sail in proposed ` 160bln capex to set up 3 mt
     plant in Jharkhand and the plant will be having Finex technology which will use iron ore directly to
     produce steel.
    The Afghan government has awarded the rights to develop three blocks of the huge Hajigak iron
     ore concession in central Afghanistan to a consortium led by the SAIL. The Hajigak resources
     contain an estimated 1.8 bt of iron ore.
    Sesa Goa, along with its subsidiary Sesa Resources, has bought around 1.5% stake in Cairn India for
     over ` 9360mln, taking its total holding in the oil producer to 20%.
    Sterlite Energy, part of Sterlite Industries, has decided not to go ahead with an earlier plan to
     expand its 4th unit of 660 MW of Talwandi Sabo power plant due to coal shortage issue and the
     project will now comprise 1,980 MW as originally planned.
    Hindalco’s subsidiary Novelis has acquired 31.2% stake in its Korean subsidiary it will increase
     novelis to 100% from 68%.
    CIL has reduced its FY12 target to 440 mt from earlier of 447 mt due to heavy rainfall and also has
     set production & off-take target of 464 mt for FY13.
    The board of directors of CIL has approved switching over of non-coking coal pricing from Useful
     Heat Value based grading system to Gross Caloric Value (GCV) based classification with effect from
     1st January 2012.
    Ministry of Environment and Forests has granted its final approval to IMFA for diversion of 149 ha of
     forest land in Utkal-C Coal Block in Angul District, Odisha for coal mining in favour of company's
     subsidiary Utkal Coal Limited.
    GOI has increased Export duty to 30% from 20% on both iron-ore fines and lumps effective from
     30th Dec 2011




                                                                                                       2
                                                                           MSFL Research
                          Q3FY12 Result Highlights:-
(in ` Mln)                Q3FY12P    Q3FY11       y-o-y   Q2FY12     Q-o-Q                    Comments
Tata Steel (S)
Net Sales                   76487      73247     4.42%     81422       -6% Realizations is expected to remain stable
EBITDA                      25186      28205   -10.71%     27698       -9% q-o-q, however volume to see a marginal
                                                                           dip. EBITDA Margin to go down due to
EBITDA Margin               32.9%      38.5%   -557bps     34.0%   -108bps
                                                                           higher raw material prices. PAT to take a hit
PAT                         13894      15135     -8.20%    14952       -7%
                                                                           due to absence of other income


Tata Steel (C)
Net Sales                  321026     286062    12.22%    325075       -1% Corus is heading towards rough time as
EBITDA                      20659      34246   -39.67%     27500      -25% Volumes & EBITDA/ton going to be lower
EBITDA Margin                6.4%      12.0%   -553 bps     8.5%   -202 bps (3.4mt & -$ 27/ton respectively) PAT to take
PAT                          2428      10030   -75.80%      2124       14% a hit due to absence of other income


JSW Steel (S)
Net Sales                   77121      57714    33.63%     76251        1% Inspite of severe disruption in production,
EBITDA                      10316      10002     3.14%     12961      -20% Sales volume would be slightly higher than
                                                                            previous quarters. EBITDA and PAT are
EBITDA Margin               13.4%      17.3%   -395 bps    17.0%   -362 bps
                                                                            going to plunge sharply due to higher
PAT                          2891       3823   -24.37%      1271      127%
                                                                            material cost


JSW Steel (C)
Net Sales                   84351      59648    41.41%     81339        4% US subsidiary will continue to make losses,
EBITDA                      11232      10164    10.51%     13938      -19% however recently started Chilean iron ore
EBITDA Margin               13.3%      17.0%   -372 bps    17.1%   -381 bps operation would provide some respite. (`
PAT                          1948       2917   -33.22%     -6693             460mln EBITDA from Chilean operations)


JSPL (C)
Net Sales                   39786      31682    25.58%     44066      -10% All units in JPL is up and running and
EBITDA                      19045      15987    19.13%     17038      12% merchant power realization would be better
                                                                           than Q2FY12. Pellet Sales in Standalone
EBITDA Margin               47.9%      50.5%   -259 bps    38.7%   920 bps
                                                                           business is set to increase. Contribution from
PAT                         10962       9511    15.26%      8754      25%
                                                                           overseas subsidiaries is set to gradually rise


SAIL (C)
Net Sales                  114656     111432     2.89%    108367        6% Sales and realization are expected to remain
EBITDA                      14561      17957   -18.91%     13271       10% almost flat sequentially. However higher raw
EBITDA Margin               12.7%      16.1%   -341 bps    12.2%     45 bps material cost will take a toll on margins and
PAT                          8903      11075   -19.61%      4946       80% profitability


Sterlite Industries (C)
Net Sales                   97780      82943    17.89%    101338       -4% Performance is going to be excellent yearly
EBITDA                      25199      19787    27.35%     24820       2% due to contribution from Zinc international
                                                                           & SEL. However sequentially performance is
EBITDA Margin               25.8%      23.9%    191 bps    24.5%   127 bps
                                                                           expected to remain quit due to stable
PAT                         13322      11011    20.99%      9978      34%
                                                                           realization across commodities

                                                                                                                      3
                                                                         MSFL Research
Sesa Goa (C)
Net Sales                  20758    22373     -7.22%      7841      165% Volumes are going to be lower due to ban
EBITDA                      9464    12306    -23.09%      2600      264% in Karnataka and environmental issues in
EBITDA Margin              45.6%    55.0%   -940 bps     33.2%   1244 bps GOA. However depreciation of rupee price
PAT                         6354    10653    -40.36%        13   49538% will provide respite.


Hindustan Zinc (C)
Net Sales                  29345    26015     12.80%     25935       13% Lower realizations in Zinc, Lead and Silver
EBITDA                     15317    15073      1.62%     14648        5% will be offset by higher production which
EBITDA Margin              52.2%    57.9%   -574 bps     56.5%   -428 bps would enable the company to report recent
PAT                        14164    12896      9.83%     13447        5% numbers.


Hindalco Industries (S)
Net Sales                  55439    59179     -6.32%     62205      -11% Sharp drop in LME prices will take a toll on
EBITDA                      5885     7401    -20.49%      6692      -12% the top line and higher energy cost will
EBITDA Margin              10.6%    12.5%   -189 bps     10.8%    -14 bps continue to hurt the company.
PAT                         3547     4603    -22.94%      5025      -29%


Novelis ($/mln)
Net Sales                   2592     2560      1.25%      2880      -10% Novelis’s Ad, EBITDA and volumes are
Ad. EBITDA                   245      234      4.62%       240        2% expected to be bit subdued sequentially due
EBITDA Margin               9.4%     9.1%     30 bps      8.3%    111 bps to seasonally effect
Ad. EBITDA/ton ($)           340      317      7.29%       393      -14%


Coal India (C)
Net Sales                 159572   126919     25.73%    131481       21% Volumes are set to recover in during the
EBITDA                    42,962   33,760     27.26%    24,773       73% quarter and EBITDA is set for a whooping
                                                                          jump due to higher realization. Provisioning
EBITDA Margin              26.9%    26.6%   32.36 bps    18.8%    808 bps
                                                                          for wage revision will continue during the
PAT                       38,381   26,261     46.15%    25,785       49%
                                                                          quarter.


NALCO (C)
Net Sales                 17,702   14,548     21.69%    15,837       12% The company will report excellent numbers
EBITDA                      4611     3477     32.61%      1526      202% due to higher Aluminum and Alumina
EBITDA Margin              26.0%    23.9%    214 bps      9.6%   1642 bps volume. However higher energy cost will be
PAT                         3264     2240     45.70%      1393      134% a damper.


Adhunik Metaliks (C)
Net Sales                   4931     4351     13.34%      4480       10% The company is going through a rough
EBITDA                      1215     1467    -17.12%       805       51% patch as both the business, Steel and Mining
                                                                          are struggling. The conditions are expected
EBITDA Margin              24.6%    33.7%   -905 bps     18.0%    667 bps
                                                                          to improve in coming quarters due to recent
PAT                           93      541    -82.76%       -55
                                                                           uptick in mineral prices.




                                                                                                                   4
                                                                                                                               MSFL Research
Prakash Industries (C)
Net Sales                                         4683              3823       22.50%               4581                    2%
                                                                                                                                    Higher iron ore price and subdued demand
EBITDA                                                766            716           6.99%                  769               0%
                                                                                                                                    will take a toll on company’s performance.
EBITDA Margin                                    16.4%              18.7%    -230 bps           16.8%                  -40 bps
PAT                                                   515            543       -5.14%                     548               -6%
                                              Source - MSFL Research, Companies

                                              Quarter at a Glance: Average Prices
Flat Steel Prices                                                                             Long Steel Prices
                                                Wo r ld Flat                                                                                    Wo r ld Long
             900                                                                                          800
                                                                                                                                                742              755
                                                794         809                                                                                          735             723
                                                                     784                                                                                                         699
             800
                      714                                                                                 700
                                                                             699                                     639               644
             700               667     675                                           673                                      602
                                                                                                          600




                                                                                              ( $/ ton)
( $/ ton)




             600
                                                                                                          500
             500
                                                                                                          400
             400

             300                                                                                          300

             200                                                                                          200
                     Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current                                       Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current
                                                                       Price                                                                                          Price

Indian Flat Prices                                                                            Indian Long Prices
                                                 Ind ian Flat                                                                                 Ind ian Long
             42000
                                                                                                          40000
                       40714                    40942                                                                                                    35250   35550   35550   35550
             41000                                          40446            40293                                    33500
                                                                                                          35000
                                                                                                                               30820   30895
             40000                                                   39651            39575
                                                                                                          30000
                               39029                                                                                                             25673
             39000                                                                                        25000
                                                                                              ( `/ton)
( `/ton)




             38000                                                                                        20000
             37000                     36445                                                              15000
             36000                                                                                        10000
             35000                                                                                         5000

             34000                                                                                              0
                      Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current                                        Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current
                                                                        Price                                                                                           Price

China HRC                                                                                     China Export HRC
                                                China HRC                                                                                    China E xport HRC
             4900
                                                            4775                                          740
             4800                                                    4754                                                                       720      714
                                                                                                          720
             4700                               4649                                                                                                             700
                                                                                                          700
             4600
                                                                                                          680
( Rmb/ton)




             4500
                                                                                              ( $/ ton)




                                                                                                          660                                                            645
             4400                      4303
                                                                                                          640
             4300      4201                                                  4224    4225                             619
                                                                                                                              611      615
             4200              4158                                                                       620                                                                    605
             4100                                                                                         600
             4000                                                                                         580
             3900                                                                                         560
             3800                                                                                         540
                     Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current                                       Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current
                                                                       Price                                                                                          Price


                                                                                                                                                                                       5
                                                                                                                   MSFL Research
LME Aluminum                                                                           LME Copper
                                             Aluminium                                                                          Co p per
            3000                                                                             12000
                                                2531     2618
                                      2365                        2430                                                             9629
            2500                                                                             10000                                         9163      8993
                               2120                                      2115                                            8614
                        1995                                                    2020
            2000                                                                                   8000           7278                                      7530   7600
                                                                                                           6635




                                                                                       ( $/ ton)
( $/ ton)




            1500                                                                                   6000

            1000                                                                                   4000

             500                                                                                   2000

                  0                                                                                   0
                       Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current                           Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current
                                                                         Price                                                                              Price

LME Zinc                                                                               LME Lead

                                              Zinc                                                                               Lea d
            3000                                                                                   3000
                                                                                                                                  2575     2531
                                                2414                                                                     2406                        2449
            2500                      2333               2271     2247                             2500
                               2043                                                                               2065                                      2009   2035
                       1842                                              1917   1845
            2000                                                                                   2000    1774
( $/ ton)




                                                                                       ( $/ ton)


            1500                                                                                   1500

            1000                                                                                   1000

             500                                                                                    500

               0                                                                                      0
                      Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current                            Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current
                                                                        Price                                                                               Price

Iron Ore (63 Fe)                                                                       Iron Ore (58 Fe)
                                             Ir o n Ore (63 fe)                                                                 Ir o n Ore (58 fe)
            200                                                                                    180
                                                178      175      176                                                                      154       154
            180                                                                                    160                             153
                                      159
            160        148                                                                         140                   128
                               137                                       141    139                                                                         124    125
            140                                                                                    120     109    107
                                                                                       ( $/ ton)




            120
( $/ ton)




                                                                                                   100
            100
                                                                                                    80
             80
                                                                                                    60
             60
             40                                                                                     40

             20                                                                                     20

              0                                                                                      0
                      Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current                            Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current
                                                                        Price                                                                               Price

                                             Source - Bloomberg, MSFL Research




                                                                                                                                                                         6
                                                                                                                           MSFL Research
Chinese Coke                                                                            Dollar Index
                                             Chinese Coke                                                                                 Do llar Index
            500                                                                            88               86
                                                                 490
            490                                           483                              86
            480                                                         475                84
                     467                                                                                              82
            470                                                                 465        82
                              458                                                                                                                                                80
( $/ ton)




            460                                                                            80                                      79                                   78
                                                                                                                                            78
            450                                 441                                        78
                                      436                                                                                                                      75
            440                                                                            76                                                          75
            430                                                                            74
            420                                                                            72
            410                                                                            70
            400                                                                            68
                    Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current                             Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current
                                                                      Price                                                                                Price

`/$                                                                                     Baltic Dry Index
                                             IN R Currency                                                                                Ba ltic DRY Index
   54                                                                           53.29
                                                                                           4000
                                                                                                              3415
   52                                                                   51.05              3500

   50                                                                                      3000
                                                                                                                         2360      2316
                                                                                           2500
   48
                  46.46    46.52                                                                                                                                       1928
                                                                45.88                      2000                                                                                 1738
   46                               44.86     45.24                                                                                                            1542
                                                      44.74                                                                                 1354       1379
                                                                                           1500
   44
                                                                                           1000
   42                                                                                          500

   40                                                                                                0
              Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current                                    Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current
                                                                Price                                                                                       Price

Scrap Prices                                                                            MCX Silver Prices
                                                 Scr ap                                                                                   MCX Silver
            500                                                                                     70000
                                                458       450    447     445    445
            450                                                                                                                                        57194   59132
                                                                                                    60000                                                              53821
            400                                                                                                                                                                49792
                                       353                                                                                                   48255
                     336      337                                                                   50000
            350
                                                                                                                                    40098
                                                                                        ( $/ ton)
( $/ ton)




            300                                                                                     40000
            250                                                                                                  29239     29988
                                                                                                    30000
            200
            150                                                                                     20000
            100
                                                                                                    10000
             50
              0                                                                                           0
                    Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current                                     Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Current
                                                                      Price                                                                                        Price

                                             Source - Bloomberg, MSFL Research




                                                                                                                                                                                      7
                                                                                          MSFL Research
MSFL Disclaimer:
All information/opinion contained/expressed herein above by MSFL has been based upon information available to the public and the
sources, we believe, to be reliable, but we do not make any representation or warranty as to its accuracy, completeness or correctness.
Neither MSFL nor any of its employees shall be in any way responsible for the contents. Opinions expressed are subject to change
without notice. This document does not have regard to the specific investment objectives, financial situation and the particular needs of
any specific person who may receive this document. This document is for the information of the addressees only and is not to be taken
in substitution for the exercise of judgement by the addressees. All information contained herein above must be construed solely as
statements of opinion of MSFL at a particular point of time based on the information as mentioned above and MSFL shall not be liable
for any losses incurred by users from any use of this publication or its contents.


Analyst declaration
We, Tanuj Rastogi & Rohit Vaja hereby certify that the views expressed in this report are purely our views taken in an unbiased manner
out of information available to the public and believing it to be reliable. No part of our compensation is or was or in future will be linked
to specific view/s or recommendation(s) expressed by us in this research report. All the views expressed herewith are our personal views
on all the aspects covered in this report.


MSFL Investment Rating
The ratings below have been prescribed on a potential returns basis with a timeline of up to 12 months. At times, the same may fall out
of the price range due to market price movements and/or volatility in the short term. The same shall be reviewed from time to time by
MSFL. The addressee(s) decision to buy or sell a security should be based upon his/her personal investment objectives and should be
made only after evaluating the stocks’ expected performance and associated risks.


Key ratings:


  Rating                                 Expected Return
  Buy                                         > 15%
  Accumulate                                 5 to 15%
  Hold                                       -5 to 5%
  Sell                                        < -5%
  Not Rated                                      -




                                      Marwadi Shares & Finance Limited
                Institutional Business Group, MSFL                         Registered Office
                @p-sec, 306, Gresham Assurance House                       Marwadi Financial Plaza, Nava Mava Main Road,
                132, Mint Road, Fort, Mumbai – 400 001                     Off 150 FT. Ring Road, Rajkot - 360 005
                Tel : + 91 22 30947100 / 102 Fax : +91 22 2269 0478        Tel : + 91 281 2481313 / 3011000




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