Atul Auto Ltd

Buy

Target Price Rs 716 CMP Rs 465

Index Details With the VAT issue resolved and the twin impact of GST & demonetization
Sensex 32,633 behind us we expect Atul Auto Ltd. (Atul) sales volume numbers to gather
Nifty 10,230 pace. The strong performance of the H1FY18 (volume growth of 9.5%) lends
Industry 2/3 wheelers credence to the sustainability of the growth story and we expect volumes to
grow at a 12% CAGR over the period FY17-20. The key drivers of this growth
Scrip Details are:
MktCap (` cr) 1,058.8 i. The resurgence of 3 Wheelers as a cost-effective mode of transport for
BVPS (`) 68.3 last mile connectivity (for logistics) and passenger travel.
O/s Shares (Cr) 2.2 ii. Pan India expansion of its distribution franchise.
52 Week H/L 389.3/512 iii. Low cost spares
Div Yield (%) 0.91 iv. Availability of products across all categories and fuel variants.
FVPS (`) 5.0
Shareholding Pattern  Investment Rationale
Shareholders %
1. 3 Wheelers have a favourable pricing and performance vis a vis SCVs.
Promoters 52.7
Acquisition cost of SCVs is in the range of Rs 3.5-5.5 lakhs with
Public 47.3
mileage of 20-22 km/litre compared to 3 Wheelers cost of Rs 2-2.5
Total 100.0
lakhs with mileage of 35 km/litre.
Atul vs. Sensex
2. Geographic expansion through augmentation of pan-India dealer
network to 200 primary dealers and 120 sub-dealers.
3. Expected uptick in its EBITDA margins is expected to 14.6% from the
present 12.5% on account of thrust on exports. Atul’s bargaining
power with vendors is also expected to improve sourcing efficiencies
leading to improvement in margins.
4. It has competitive pricing of spare parts (5% less than competitors).
5. Company is undertaking a doubling of capacity (cost of 150 crore)
through internal accruals. This new capacity is expected to be
operational by FY20 coinciding with the peaking of utilization of the
existing facility.

Key Financials (Rs in Cr)

Net EPS EPS Growth RONW ROCE P/E EV/EBITDA
Y/E Mar EBITDA PAT
Sales (Rs) (%) (%) (%) (x) (x)
2017 475.3 59.5 37.8 17.0 -21.1 22.3 32.6 27.0 15.5
2018E 635.2 84.1 53.7 24.5 44.0 26.5 38.3 19.1 12.4
2019E 722.1 101.1 62.4 28.5 16.2 25.0 36.5 16.4 10.3
2020E 809.9 117.9 74.6 34.1 19.5 24.3 35.1 13.7 8.8

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 6. The company has been able to double its market share from 2.3% in
FY09 to 4.7% in FY16 and volume growth of the company will
enable it to capture further share.

In Q1FY18, Atul reported a healthy 24.3% growth in topline to Rs 128.8 crore

from Rs 103.7 crore reported in the same quarter of the previous year. The
EBIDTA margin increased 100 bps to 9% from 8%, mainly on account of a fall
in employee cost. The PAT stood at Rs 7.8 crore increasing 61.7% YoY on
account of strong operating performance.
During FY17, Atul’s net sales stood at Rs 475.3 crore registering a degrowth
of 10% YoY. The EBIDTA margin decreased 100 bps YoY to 13% while the
PAT decreased by 21.3% YoY to touch Rs 37.3 crore.

 Valuation
At the CMP of Rs 465 the stock is trading at 13.7X its estimated earnings of
FY20. We have assigned PE multiple of 21X on the FY20 EPS of Rs 34.1 to
arrive at the target price of Rs 716, representing a potential upside of 54%
over a period of 24 months.

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 TATA Motors Ltd
Buy

Target Price Rs 554 CMP Rs 436

Tata Motors is the leader in the Indian commercial vehicles space. It is also
Sensex 32,633
present in the passenger vehicles segment, although it is losing market
Nifty 10,230 share. Tata Motors has operations in the UK, South Korea, Thailand, Spain,
Industry Automobile South Africa, and Indonesia. The biggest of the subsidiaries — Jaguar Land
Rover (JLR), a business comprising two iconic British brands — was acquired
Scrip Details in 2008.
MktCap (` cr) 1,26,047.7
BVPS (`) 170.9  Investment Rationale
O/s Shares (Cr) 339.6
1. JLR’s plan to launch six products over the next 12-15 months appears to
52 Week H/L 563 / 357
be on track. This is post the recent launch of the all-new Discovery, which
FVPS (`) 2.0 is yet to fully ramp-up. In the past, volume growth has surged when JLR
Shareholding Pattern launched new models in white spaces (new segments). Over the next 12
Shareholders % months, JLR is slated to launch/ramp up three new models — RR Velar
Promoters 34.7 (coupe SUV), E-Pace (first compact SUV from Jaguar) and I-Pace (first
Public 65.3 electric car). In addition, the Range Rover and RR Sport are due for a mid-
Total 100.0 life refresh at CY17-end. We expect volume growth to improve from 7%
TATA Motors vs. Sensex over the past 12 months to 11-12% over the next 18 months
es
600.00 35000.00
2. JLR would be offering an electric variant (including hybrids) of all new JLR
500.00 30000.00 model lines from 2020
400.00 25000.00
20000.00
300.00
200.00
15000.00 3. JLR expects realized Fx hedge losses to remain at Q1 levels for
10000.00
100.00 5000.00 Q2/Q3FY18, and then start moderating substantially from Q4FY18. Based
0.00 0.00
on the current spot rates, hedge losses for FY19 would be negligible
13-Oct-16

13-Dec-16

13-Oct-17
13-Nov-16

13-Jan-17

13-Feb-17

13-Apr-17

13-May-17

13-Aug-17

13-Sep-17
13-Mar-17

13-Jun-17

13-Jul-17

4. JLR has revised its hedging policy from May 2017 to provide a cushion
Tata Motors SENSEX against any demand shocks. It now hedges up to 65% of 1-year forward
net Fx exposure (as against up to 85% earlier)

Key Financials (in Crs)

Y/E Mar Net Sales EBITDA Adj PAT EPS EPS RONW ROCE P/E EV/EBITDA
Growth (%) (%) (%)
(Rs) (x) (x)
2017 269,692.5 36,912.4 6,063.6 30.2 -32.1 15.9 11.5 15.6 4.4
2018E 288,358.9 35,392.0 5,161.0 20.7 -31.5 10.9 8.2 22.8 4.9
2019E 340,820.4 47,673.2 11,725.6 40.5 95.7 16.9 11.9 11.7 3.2
2020E 384,190.9 55,837.2 16,424.4 55.4 36.8 19.4 13.9 8.5 2.4

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 5. Management has considerably increased focus on turning around the
domestic business. It involves factors such as improving market share,
faster product introductions in the market, streamlining supply chain,
better asset/capacity utilization and rationalizing cost structure. The
company has set an aggressive target of regaining 5% market share in
both the CV and PV businesses over the next 1-2 years

6. It is targeting cost savings of INR15b in FY18, driving PAT break-even in

FY18. It expects to save INR3b from staff cost and INR1b from lower RM
cost on account of price renegotiation with vendors post GST,
improvement in efficiencies and fixed cost savings

For the quarter ended June 30, 2017, Tata Motors reported consolidated
revenues of Rs 59,818 crores as against Rs 66,165 crores for the corresponding
quarter last year registering a Y-o-Y De-growth of 9.6% and Q-o-Q de-growth of
24.0%. Consolidated revenues for the quarter are due to translation impact from
GBP to INR. Consolidated Profit after tax for the quarter was Rs.3,199 crores,
against Rs.2,260 crores for the corresponding quarter last year registering a Y-o-
Y growth of 41.6% and Q-o-Q de-growth of 26.2%. Consolidated Profit before tax
for the quarter includes one- time gain of Rs.3,609 crores (£437million) relating
to the changes made to the Jaguar Land Rover pension plans.

 Valuation
At the CMP of Rs 436 the stock is trading at 8.5X its estimated earnings of
FY20. We have assigned PE multiple of 10X on the FY20 EPS of Rs 55.4 to
arrive at the target price of Rs 554, representing a potential upside of 27%
over a period of 24 months

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 South Indian Bank Ltd
Buy

Target Price Rs 38.9 CMP Rs 32.3

Index Details South Indian Bank (SIB), among the mid-sized banks in the private sector
Sensex 32,633 space, operates a network of about 851 branches and about 1,354 ATMs. The
bank’s business is largely skewed towards the Southern state with half of its
Nifty 10,230
branches located in Kerala. SIB has established a strong brand recall among
Industry Banking the Keralite-NRI Diaspora.

Scrip Details  Investment Rationale

MktCap (` cr) 5,800
BVPS (`) 23.1 1. The bank has “Fully recognized” the watch list announced earlier which
O/s Shares (Cr) 180.4 explains the rise in GNPLs in the first and second quarter. The issues of
52 Week H/L 18.5/32.9 NPA recognition on large corporate segment is done away with and there
Div Yield (%) 1.2 are no accounts on the corporate watch list. Going forward, with
FVPS (`) 1.0 improving recoveries from defaulting accounts along with lower
Shareholding Pattern slippages, the NPAs of the bank is set to decline.
Shareholders % 2. With increasing efforts to control the operating costs, the bank expects
Promoters 0 to cut down its cost to income ratio further to the range of 41-43% by
Public 100 FY20 resulting into higher operating efficiency.
Total 100.0
3. Return ratios of the bank are set to improve on the back of a steady rise
SIB vs. Sensex
in profit after tax. The recent quarter witnessed one off adjustment that
35000 35 reduced PAT by 96% as the bank provided for reduction in the NAV of the
security receipts held for the NPAs sold to ARCs.
30000 30
25000 25
4. The bank has tied with SBI Life, Kotak Life and Max BUPA for Health
20000 20
insurance. This will help boost other opportunities for the bank.
15000 15
10000 10 5. In the coming years, the bank will aim to build a granular advance book
5000 5 which will help it to maintain the overall asset quality.
0 0

SENSEX SIB

Key Financials ( Rs in Cr)

Net Non P/E P/Adj BV
Interest Interest
Year Income Income PAT EPS Adj. BV ROE (%) ROA (%) (x) (x)
2017 1,675.5 715.6 392.5 2.2 23.1 9.0 0.6 14.8 1.4
2018E 2,091.4 829.9 454.8 2.5 23.3 9.2 0.6 12.8 1.4
2019E 2,449.0 974.3 601.3 3.3 25.2 11.4 0.7 9.7 1.3
2020E 2,901.7 1,143.7 824.9 4.6 27.8 14.3 0.8 7.1 1.2

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  Quarter Update

1. For the quarter ended September 2017, Advances staged a growth of 12%
YoY from Rs 44,428 crore in Q2FY17 to Rs 49,717 crore in Q2FY18.This
was mainly driven by a robust growth of 19% YoY in the MSME segment.
We expect the advances to grow at a CAGR of 17% to Rs 73,524 crore by
FY20.

2. Deposits of the bank grew 12% YOY from Rs 60,192 crore in Q2FY17 to Rs
67,142 crore in Q2FY18 with an increase of 12% in core deposits and 8%
in non core deposits. Core deposits amount to Rs 56,040 crore and non
crore deposits amount to Rs 11,102 crore. CASA ratio improved from
22.8% in Q2FY17 to 24.6% in Q2FY18. We expect the net interest income
to grow from Rs 1675.5 crore in FY17 to Rs 2901.1 crore in FY20 with an
improvement in the net interest margins from 2.6% in FY17 to 2.9% by
FY20.

3. Asset quality continues to stabilize with improvements in the recovery

trends. We expect the gap between net additions and recoveries to
narrow down in the coming years which will improve the GNPAs and
NNPAs. With the incremental provisioning made, provisioning coverage
towards the asset pool sold to ARC crossed 50% which would increase
the prospects of recovery.

4. South Indian Bank reported a 96-per cent drop in net profit at Rs 4.3 crore
in the second quarter of the current fiscal against Rs 111 crore in the
corresponding period of the previous fiscal, due to higher provisions. The
bank was required to absorb an exceptional provision of Rs 252.39 crore
during the quarter. Had the exceptional provision not been there, PAT
would have been Rs 169 crore for the current quarter. We expect the ROA
and ROE of the bank to improve to 0.8% and 14.3% by FY20 respectively.

 Valuation
At the current market price of Rs 32.35, the stock is trading at 1.2x FY20
P/ABV. We have assigned a multiple of 1.4x on ABV of FY20 of Rs 27.8 to
arrive at a target price of Rs 38.9, representing a potential upside of 21%.

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 Gujarat Gas Limited
BUY
Target Price Rs. 1476 CMP Rs.931

Index Details
Sensex 32633 Gujarat Gas Limited (formerly known as GSPC Distribution Networks
Nifty 10230 Limted), has emerged as India’s largest city gas distribution player with 18
City Gas Distribution (CGD) licenses spread across 22 districts in the State
Industry Gas & Oil
of Gujarat, Union Territory of Dadra Nagar Haveli and Thane GA, which
includes Palghar district of Maharastra.
Scrip Details
Mkt Cap (` cr) 12819.85 The company has an expanse of around 96,000 square kilometers of
BVPS (`) 119.50 licensed area and continues to hold the leadership position of being the
O/s Shares (Cr) 13.77 largest CGD in the country catering to more than 11 lakh customers, over
Av Vol 9985 12,750 commercial customers. GGL has a network of around 20,000
52 Week H/L 487 / 945 kilometres long natural gas pipeline and 252 CNG stations constituting
Div Yield (%) 0.32 ~21% of all the CNG stations in the country.
FVPS (`) 10
GGL provided 5.4 mmscmd of natural gas in FY17 to ~33% of all domestic
customers, ~54% of all the commercial customers and ~46% of all the
Shareholding Pattern
industrial customers in India.
Shareholders %
Promoters 60.89
 Investment Rationale
Public 39.11
Total 100.00 1. The strong network of infrastructure exclusivity between FY2028 to
FY2041 and marketing exclusivity from FY2017 to FY2021 in 20
GGL vs. Sensex geographical areas offers significant opportunity for the CGD business
with revenue visibility over the next 20 years.
35000 1000
30000 900

25000
800
700
2. Delhi – Mumbai Industrial Corridor (DMIC) is expected to boost
600
20000
500 industrial PNG volumes, as 62% of the state of Gujarat is expected to
15000 400
10000 300 fall within the DMIC corridor which would result in exponential increase
200
5000
0
100
0
in gas demand.

3. The total gas volumes are expected to grow at 19.4% CAGR to 9.1
SENSEX Gujarat gas mmscmd from 5.4 mmscmd in FY17.

 The industrial volume is expected to grow at 14.9% CAGR to 6.9

mmscmd in FY20.
Key Financials (` in Cr)
Net EPS Growth RONW ROCE P/E EV/EBITDA
Y/E Mar EBITDA PAT EPS
Sales (%) (%) (%) (x) (x)
2017 5092.6 743.3 219.5 15.9 (1.2) 13.3 12.9 58.6 19.9
2018E 6623.1 1361.7 564.1 40.9 157.2 18.5 20.2 22.8 10.8
2019E 8030.6 1808.5 871.9 63.3 54.8 22.5 26.2 14.7 7.7
2020E 9494.6 2068.4 1087.8 79.0 24.8 22.2 29.0 11.8 6.4

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  PNG domestic and commercial volumes are expected to ramp up
substantially, as currently the vintage markets are under penetrated
thereby giving significant growth opportunities. We expect the PNG
volumes to grow at 24.2% CAGR to 1.19 mmscmd by FY20.
 The lower penetration of CNG vehicles in Gujarat (~5%) in comparison
to Delhi (~13%) and Mumbai (~16%), represents a significant latent
potential. We expect the CNG stations to grow at a CAGR of 9% to 302
pumps in FY20 and the volumes to grow at 14.5% CAGR over the same
period to 1.6 mmscmd in FY20.

In Q1FY18, net sales grew by 20.7% YoY to Rs.1478 crore as compared to Rs.
1224.7 crore in Q1FY17. The increase in revenue was on back of 19.1% YoY
increase in volume to 6.1 mmscmd from 5.1 mmscmd in Q1FY17. EBIDTA
increased by 24.2% YoY to Rs. 269.8 crore in the quarter from Rs. 217.3 crore
in Q1FY17. However, the EBITDA margin declined by 230bps to 18.2%. The
PAT increased by 38% YoY to Rs. 104.4 crore on the back of strong volumes
uptake.

However, in the FY17 the net revenues declined by 16.8% YoY to Rs. 5118.9
crore and the EBIDTA declined by 0.3% YoY to Rs. 769.6 crore. The EBIDTA
margin improved by 250bps to 15%. The company reported a 16.1% YoY
growth in its PAT to Rs. 220.6 crore from Rs. 190 crore in FY16.

 Valuation
At the CMP of Rs.931, the stock is trading at 6.4X its estimated EV/EBITDA of
FY20. We have valued at an EV/EBITDA of 10X FY20 to arrive at a target price
of Rs. 1476, representing a potential upside of 58.6% over a period of 24
months.

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 Sunil Hitech Engineers Ltd
Buy

Target Price Rs 33.5 CMP Rs 12.7

Index Details Sunil Hitech Engineers Ltd (SHEL) is no novice when it comes to executing
Sensex 32633 the infrastructure business. Infact, not many are aware that Sunil Hitech has
Nifty 10230 successfully executed 46129 MW of power infrastructure.
Industry Infrastructure

As SHEL shift’s focus from power to roads, infrastructure projects, we

Scrip Details
believe that Sunil Hitech will be successful in executing the latter with equal
MktCap (` cr) 484.1
aplomb. However, the market is not valuing its full potential due to the recent
BVPS (`) 13.6 turbulence around the change in promoter ownership and consequent
O/s Shares (Cr) 37.9 concerns over the likely impact on its business prospects. To make matters
52 Week H/L 23.4/8.3 worse, the general apathy towards the infrastructure sector and declining
Div Yield (%) 0.6 profitability of the power segment had only accentuated matters further.
FVPS (`) 1.0
Shareholding Pattern However, we believe that the worst is behind us and redressal of the
Shareholders % problems stated above should improve business prospects significantly.
Promoters 35.4 Erstwhile promoters (parents of Mr. Sunil Gutte) have exited the company by
Public 64.6 selling their holdings in the open market.
Total 100.0
SHEL vs. Sensex The present promoters are consolidating their holding and infusing equity to
35000 25 the tune of Rs. ~107 crores (through warrants) and on fully exercising the
30000
25000
20 warrants the promoters holding, should improve to 48.5% from the current
20000 15 35.4%.
15000 10
10000
5
5000
0 0

SENSEX SHEL

Key Financials (Rs in cr)

EPS EV /
Net EPS Growth RONW ROCE P/E EBITDA
EBITDA Adj. PAT
Revenue
Y/E Mar (`) (%) (%) (%) (x) (x)
2017 2559.6 202.3 39.5 1.0 -94.3 8.0 16.8 12.2 4.5
2018E 2999.5 261.3 56.6 1.3 22.1 9.3 18.2 10.0 4.4
2019E 3684.9 347.6 81.3 1.5 18.0 10.5 19.2 8.4 4.1
2020E 4218.1 401.7 87.9 1.6 8.2 9.8 18.7 7.8 4.1

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  Investment Rationale

1. Order book of Rs 5018 crores as on 30th June,2017 (2x FY17

revenues) continues to remain robust and this should lead to
sustaining the strong revenue growth of 18.1% CAGR to Rs
4218.1 crore by FY20.

2. Margins are set to expand as the revenue share of the high

margin road business improves. We expect margins to improve
by ~160 bps to 9.5% by FY20.

3. Recently, the company won a HAM project for Rs 982 crores.

We believe that the high ROCE HAM projects would encourage
the management to up its bidding for further such projects as
the way forward. As per our calculations, the value per share of
the future cash profits from the project at WACC of 9.2% comes
to Rs 5.6.

4. Earnings are expected to grow at a CAGR of 30.6% to Rs 87.9

crores by FY20 with a healthy improvement in return ratios of
ROE and ROCE by 180 bps and 200bps to 9.8% and 18.7%
respectively. With ratios returning to industry levels, the
valuation is also expected to improve sharply.

In Q1FY18, SHEL Ltd reported a robust 23.5% growth in its standalone

topline to Rs 548.4 crore from Rs 444.0 crore reported in Q1FY17. The
EBIDTA margins declined by around 60 bps from 9.6% to 9.0% due to
increase in contract and site expenses. The total PAT stood at Rs 13.7
crore as against Rs 11.2 crore in Q1FY17 registering growth of 23.2%
YoY.

 Valuation
At the CMP of Rs 12.7 the stock is trading at 4.1x FY20 EV/EBIDTA. We
have valued each business separately using SOTP methods and have
arrived at a target price of Rs 33.5 over a period of 24 months.

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 Radico Khaitan Ltd.
BUY

Target Price ₹244 CMP ₹216

Index Details Radico Khaitan (RDCK) has transformed itself from a major spirits supplier to
Sensex 32633 a large branded products company in the IMFL (Indian Made Foreign Liquor)
Nifty 10230
space from 1998. IMFL accounted for 65% of its revenues in FY17. Its brands,
8PM whisky, Magic Moments vodka, Contessa rum and Old Admiral brandy,
Industry Liquor
are among the top selling brands in their category. Premium brands
accounted for 44% of its IMFL sales in FY17 and it launched six brands in the
Scrip Details last five years in premium categories. Its strong distribution network of
MktCap (` cr) 2875.24 55,000 retailers, across India, accounts for 90% of its revenues.

BVPS (`) 91.07 ❖ Investment Rationale

O/s Shares (Cr) 13.30
52 Week H/L 226/106 1. Favourable demographic characteristics of India with 66% of its 2016
Div Yield (%) 0.6 population within legal drinking age rising to 68% by 2021. Key growth
drivers will be rapid urbanization (40% by 2025) and changing
FVPS (`) 2.0
consumption pattern accepting higher quality and lifestyle products.
Shareholding Pattern
Shareholders % 2. In 2017-2021 the IMFL Industry expects 8% growth in by value. Blended
Promoters 40.5 Scotch and Single Malt Scotch are expected to lead with 13.2% growth
each. Vodka industry value growth will be 8.2%.
Public 59.5
Total 100.0 3. RDCK is focused on innovation and brand building, growing in the
RDCK vs. Sensex premium segments and improving its balance sheet by reducing debt.
We forecast a 32% increase in net worth and a 25% reduction in debt over
FY17-20.

4. At end of FY17, RDCK had a total debt of ₹799 crores RDCK intends to
repay the long-term debt of ₹103 crores from internal cash generation by
FY19. The savings in the interest costs will lead to PAT expansion by a
CAGR (FY17-20E) 23%.

5. In the past years, the Indian spirits industry has faced many obstacles
such as state government ban on liquor consumption, no price hikes in
government regulated markets and a ban on selling liquor close to
national highways. RDCK has managed to report a growth in revenues,
despite a fall in the industry growth momentum. The company reported a
revenue CAGR (FY14-17) of 5%.
Key Financials (in ₹ Crores)

EPS Growth ROE ROCE P/E EV/EBITDA

Y/E Mar Net Sales EBITDA PAT EPS
(%) (%) (%) (x) (x)
2017 1684 212 81 6.1 10.1 7.8 15.7 35.4 12.5
2018E 1726 243 103 7.7 27.3 9.2 18.0 28.0 11.8
2019E 1856 266 122 9.2 19.2 9.9 19.0 23.5 10.6
2020E 2039 298 148 11.1 21.3 10.9 19.5 19.5 9.3

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 RDCK reported a decline in net revenues by 4% YoY to ₹411 crores
in Q1FY18 as it was impacted by the ban on selling liquor near
national highways. The volumes declined by 5.8% YoY. However,
the net revenues increased by 4.6% QoQ, driven by an increase in
volumes by 8.9% QoQ, indicating the fading effect of
demonetisation.

The Adjusted EBITDA (for exceptional non-cash charge/ profit on

account of forex fluctuation related to ECBs) increased by 2.3%
YoY to ₹62 crores (₹61 crores in Q1FY17). The Adjusted EBITDAM
for 1QFY18 expanded by 92bps YoY to 15.1% led by RDCK’s focus
on its strong premium product portfolio and cost optimization
measures.

The PAT grew by 16.7% YoY to ₹26 crores in 1QFY18 as against ₹22
crores in 1QFY18. The Adjusted PAT remained stable YoY at ₹26
crores while Adjusted PATM increased by 28bps YoY to 6.2%. The
effective tax rate stood at 33% for this quarter.

❖ Valuation
At the current market price of ₹216, the stock is trading at a PE of
19.5x FY20 EPS of ₹11.1. We recommend a BUY with price target of
₹244. We arrived at the price target by applying 22 times PE
multiple to FY20 EPS.

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Disclosures and Disclaimer
Ventura Securities Limited (VSL) is a SEBI registered intermediary offering broking, depository and portfolio management services to clients. VSL is a member
of BSE and NSE. VSL is a depository participant of NSDL. VSL states that no disciplinary action whatsoever has been taken by SEBI against it in last five years
except administrative warning issued in connection with technical and venial lapses observed while inspection of books of accounts and records. Ventura
Guaranty Limited is the holding Company of VSL; Ventura Commodities Limited and Ventura Allied Services Private Limited are subsidiaries of VSL. Research
Analyst (RA) involved in the preparation of this research report and VSL, disclose that neither RA nor VSL nor its associates (i) have any financial interest in the
company which is the subject matter of this research report (ii) holds ownership of one percent or more in the securities of subject company (iii) have any
material conflict of interest at the time of publication of this research report (iv) have received any compensation from the subject company in the past twelve
months (v) have managed or co-managed public offering of securities for the subject company in past twelve months (vi) have received any compensation for
investment banking, merchant banking or brokerage services from the subject company in the past twelve months (vii) have received any compensation for
products or services from the subject company in the past twelve months (viii) have received any compensation or other benefits from the subject company or
third party in connection with the research report. RA involved in the preparation of this research report discloses that he / she has not served as an officer,
director or employee of the subject company. RA involved in the preparation of this research report and VSL discloses that they have not been engaged in the
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inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one
or more of the estimates on which the projections and forecasts were based will not materialize or will vary significantly from actual results, and such variances
will likely increase over time. All projections and forecasts described in this report have been prepared solely by the authors of this report independently for the
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price and value of the investments referred to in this document/material and the income from them may go down as well as up, and investors may realize losses
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company nor its directors or any other person accepts any liability whatsoever for any loss arising from any use of this document or its contents or otherwise
arising in connection therewith. The information contained herein is not intended for publication or distribution or circulation in any manner whatsoever and any
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Ventura Securities Limited

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