phoenix mills phomil) - icici...

ICIC

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ecurit

ies –

Retail E

quit

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esearch

Result

Update

February 12, 2020

CMP: | 882 Target: | 1020 (16%) Target Period: 18 months

Phoenix Mills (PHOMIL)

BUY

Strong all-round performance...

Phoenix Mills’ (PML) topline grew 16.2% YoY to | 511.8 crore. Adjusting for

residential business (| 48.1 crore), core portfolio (retail, commercial &

hospitality) revenues grew 10.3% YoY to | 463.7 crore. EBITDA margins

expanded 20 bps YoY to 50.7%. RPAT grew 29.7% YoY to | 91.9 crore.

Adjusting for residential business PAT, core portfolio PAT grew at a strong

47.2% YoY to | 83.3 crore in Q3FY20.

Retail rental income grows 8% YoY in Q3FY20

PML reported retail rental income growth of 8% YoY to | 277.7 crore mainly

driven by PMC Bengaluru, PMC Pune, PMC Mumbai and HSP & Palladium.

Overall, operational malls reported strong overall consumption growth of

10% YoY to | 2,067.2 crore in Q3FY20 on the back of a festive October and

December, 2019. Consumption growth also remains strong at 8-12% YoY in

January, 2020, which is encouraging. On the trading density front, HSP &

Palladium, PMC Bengaluru, PMC Pune, PMC Mumbai reported 13%, 11%,

11%, 9% growth, respectively, in Q3FY20. HSP & Palladium recorded trading

density of | 3,620/sq ft per month, which is among the highest in India. PMC

Mumbai reported trading density at | 1,415/sq ft per month, thus closing the

gap with performance of other leading malls in the vicinity. We note that it

has grown 50% over the past three years, thus indicating the management’s

drive towards a strong operational improvement.

On the new malls front, Phoenix Palassio is ~85% leased out at an average

lease rate of | 105/sq ft per month. Fit-outs are in progress and the mall is

set to be operational in Q4FY20E. PMC Indore has achieved ~60% leasing

as of Q3FY20. The mall is expected to open 12-15 months after Palassio

commences operations. With this and with more than 16-24% space coming

up for renewals at several malls in FY21E, we expect retail rental income to

grow at a CAGR of 16.1% to | 2,088.7 crore in FY19-24E.

Fountainhead-Tower 2&3 to commence leasing in H1FY21E

Commercial business revenues grew 2.1% YoY to | 33.4 crore in Q3FY20.

PML leased Fountainhead-Tower 1 at an average lease rate of | 80/sq ft per

month. Operational commercial assets are near optimum occupancy while

PML has 0.96 msf office assets under development between Fountainhead-

Tower 2&3 & PMC Chennai. Structural work at Fountainhead-Tower 2&3 has

been completed while leasing is expected to commence in H1FY21E.

Addition of these assets would take the total office portfolio to ~3 msf.

Valuation & Outlook

We remain positive on PML given it is a quasi play on India’s consumption

story, quality of assets, healthy balance sheet & strategic expansion plans.

The company is well on track to strongly double its portfolio, going ahead.

We maintain BUY rating with an SoTP based target price of | 1,020/share.

Key Financial Summary

(| Crore) FY17 FY18 FY19 FY20E FY21E CAGR FY19-21E

Net Sales (| crore) 1,824.6 1,619.8 1,981.6 2,020.9 2,295.8 7.6%

EBITDA (| crore) 846.9 777.4 993.2 1,032.4 1,176.8 8.9%

EBITDA margin (%) 46.4 48.0 50.1 51.1 51.3

Adj. Net Profit (| crore) 167.9 242.2 372.9 324.4 392.5 2.6%

Adj. EPS (|) 11.0 15.8 24.4 21.2 25.6

P/E (x) 80.4 55.8 32.1 40.7 34.4

EV/EBITDA (x) 20.1 21.6 17.4 16.9 15.0

Price / Book (x) 6.3 4.7 3.9 3.5 3.2

RoCE (%) 11.0 8.8 9.6 8.2 8.7

RoE (%) 7.8 8.5 10.7 8.5 9.2

Source: Company, ICICI Direct Research

Particulars

Particular Amount (| crore)

Market Capitalization 13,507.1

Total Debt 4,546.9

Cash 284.2

EV 17,769.8

52 week H/L (|) 913 / 564

Equity capital 30.7

Face value | 2

Key Highlights

Rental income grew 8% YoY to

| 277.7 crore in Q2FY20

Fit-outs at PMC Lucknow (Phoenix

Palassio) are under way and the mall

is set to be operational in Q4FY20E

Expect rental income growth at

16.1% CAGR to | 2,088.7 crore in

FY19-24E

Maintain BUY with a target price of

| 1,020/share

Research Analyst

Bhupendra Tiwary, CFA

[email protected]

Harsh Pathak

[email protected]

ICICI Securities | Retail Research 2

ICICI Direct Research

Result Update | Phoenix Mills

Exhibit 1: Variance Analysis

Q3FY20 Q3FY20E Q3FY19 YoY (Chg %) Q2FY20 QoQ (Chg %) Comments

Income from Operation 511.8 479.5 440.4 16.2 415.1 23.3Core portfolio revenues grew 10.3% YoY to | 463.7

crore

Other Income 13.3 15.0 17.0 -21.8 19.5 -31.7

Total raw material Expenses 32.3 24.0 21.3 51.8 11.9 171.0

Employee cost 52.1 47.9 45.9 13.5 39.8 30.8

Other expenditure 129.0 119.9 110.5 16.8 110.2 17.1

EBITDA 259.3 239.7 222.5 16.6 210.8 23.0

EBITDA Margin (%) 50.7 50.0 50.5 15 bps 50.8 -11 bps

Depreciation 51.4 50.9 52.3 -1.6 50.9 1.0

Interest 88.9 87.8 91.7 -3.0 87.8 1.3

PBT 132.3 116.0 95.5 38.5 99.3 33.2

Taxes 35.8 34.8 17.5 104.5 35.0 2.2

Reported PAT 91.9 81.2 70.8 29.7 65.8 39.6Core portfolio PAT (excluding residential business)

grew at a strong 47.2% YoY to | 83.3 crore in Q3FY20


Exhibit 2: Change in estimates

FY19 FY20E FY21E

(| Crore) Old New % Change Old New % Change Comments

Revenue 1619.8 1981.6 2024.3 2020.9 -0.2 2,214.1 2295.8 3.7 We tweak our estimates

EBITDA 777.4 993.2 1038.7 1032.4 -0.6 1,149.6 1176.8 2.4

EBITDA Margin (%) 48.0 50.1 51.3 51.1 -22 bps 51.9 51.3 -64 bps

PAT 242.2 421.0 342.6 332.2 -3.0 379.4 392.5 3.5

EPS (|) 15.8 27.5 22.4 21.7 -3.0 24.7 25.6 3.5

FY18





Conference call Highlights

Management commentary: PML reported retail rental income growth of

8% YoY to | 277.7 crore mainly driven by PMC Bengaluru, PMC Pune,

PMC Mumbai and HSP & Palladium. Overall, operational malls reported

strong overall consumption growth of 10% YoY to | 2,067.2 crore in

Q3FY20 on the back of the festive months of October and December,

2019, which is encouraging. Overall consumption in Q3FY20 was driven

by multiplex/entertainment, cosmetics/footwear segments, which

reported 19%, 16% YoY growth, respectively, during the quarter. Also,

PML has seen strong consumption growth of 8-12% YoY in January,

2020. On the mall space renewals front, 21% space at HSP & Palladium

is under renewal in FY20E, of which 15-16% space is complete at MG

rate of ~20%, higher than the last transacted rate. Furthermore, 16-24%

space is coming up for renewal at several malls in FY21E. This could

help PML lease the spaces at higher rates, going ahead

Mall performance key highlights: Leading malls in PML’s portfolio

reported strong growth in trading density in Q3FY20 with HSP &

Palladium, PMC Bengaluru, PMC Pune, PMC Mumbai reporting 13%,

11%, 11%, 9% trading density growth, respectively, in Q3FY20. HSP &

Palladium recorded trading density of | 3,620/sq ft per month, which is

among the highest in India. PMC Bengaluru’s trading density was at

| 2,085/sq ft per month, thus being the first MarketCity to cross the

| 2,000/sq ft mark. PMC Mumbai reported trading density at | 1,415/sq

ft per month, thus closing the gap with other malls in the vicinity

Under-development retail assets: Fit-outs at PMC Lucknow (Phoenix

Palassio) are in progress. The mall has been ~85% leased out at an

average lease rate of | 105/sq ft per month It is set to be operational in

Q4FY20E. Palassio’s total cost is at ~| 720 crore (including land cost).

At PMC Indore, leasing has commenced and has achieved ~60% leasing

as of Q3FY20. The mall is expected to open 12-15 months after Palassio

commences operations. Furthermore, the company expects PMC

Hebbal (just launched) and PMC Wakad each to be ~40% pre-leased by

the next two quarters. Construction at all these retail assets is going as

per schedule. Furthermore, the management has stuck to its guidance

of adding 1 msf mall space to its portfolio every year post FY24E

Commercial portfolio: Commercial business revenues grew 2.1% YoY

to | 33.4 crore in Q3FY20. PML leased Fountainhead-Tower 1 at an

average lease rate of | 80/sq ft (ex. CAM) per month. The company has

0.96 msf office portfolio under development between Fountainhead –

Tower 2&3 (0.54 msf) and at Phoenix MarketCity, Chennai (0.42 msf).

Structural work at Fountainhead – Tower 2&3 is complete while the

leasing is expected to commence in H1FY21E. Overall, these assets are

expected to be ready for fit-outs in the next three quarters

Capex: PML incurred | 170 crore capex towards the under construction

assets (retail & commercial) in Q3FY20 (| 432 crore incurred in 9MFY20).

The company is expected to incur capex worth | 700-750 crore in FY21E

Residential business: PML clocked | 48.1 crore residential revenues in

Q3FY20. Cumulatively 1.28 msf is at OBW, Bangalore and 0.27 msf at

Kessaku as of Q3FY20. In order to increase traction at its residential

properties and to increase sales velocity, the company is taking several

marketing initiatives and expects sales activity to improve ahead

Hospitality portfolio: Hospitality business revenues grew 10.8% YoY to

| 108.5 crore in Q3FY20. On a positive note, The St Regis, Mumbai

reported 84% room occupancy and ARR of | 13,857 in Q3FY20, which

the management says is the life-time high ARR that the asset has

achieved. Furthermore, as per management, St. Regis has highest

RevPAR in its presence area, which is encouraging




Company Analysis

Exhibit 3: Retail income trend

Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20

YoY

Growth

(%)

QoQ

Growth

(%)

Avg Rental rate (|/ sq ft pm)

HSP & Palladium 403.0 392.0 406.0 383.0 413.0 2.5 7.8

PMC Mumbai 99.0 97.0 101.0 102.0 108.0 9.1 5.9

PMC Bangalore 124.0 118.0 124.0 126.0 138.0 11.3 9.5

PMC Chennai* 139.0 137.0 139.0 140.0 141.0 1.4 0.7

PMC Pune 123.0 116.0 125.0 124.0 136.0 10.6 9.7

Rental Income (| crore)

HSP & Palladium 88.6 86.8 88.1 87.9 94.6 6.8 7.6

PMC Mumbai 31.1 31.0 32.3 32.0 33.9 9.0 5.9

PMC Bangalore 36.1 34.7 35.9 36.0 40.0 10.8 11.1

PMC Chennai* 38.8 38.4 39.4 47.5 48.2 24.2 1.5

PMC Pune 41.6 40.6 43.2 42.7 45.8 10.1 7.3


Exhibit 4: Commercial portfolio

Office Location

Total

Area

(msf)

Area

Sold(msf)

Net Leasable

Area (msf)

Area

Leased

(msf)

Average

Rate

(|/sq ft.)

Operational

Phoenix Paragon Plaza Mumbai 0.41 0.12 0.29 0.21 117

The Centrium Mumbai 0.28 0.16 0.12 0.08 NA

Art Guild House Mumbai 0.80 0.20 0.60 0.55 101

Phoenix House Mumbai 0.10 - 0.10 0.07 NA

Fountainhead - Tower 1 Pune 0.17 - 0.17 0.16 74

Total Operational 1.76 0.48 1.28 1.07


Exhibit 5: Hospitality portfolio

Hotel Location Keys Occupancy

Avearge

room rate

per day (|)

Revenue from

Rooms Q3FY20

(| crore)

Total Revenues

Q3FY20

(| crore)

The St. Regis Mumbai 395 84% 13,857 42.2 96.2

Courtyard by Marriot Agra 193 77% 4,919 6.6 12.4


Exhibit 6: Residential portfolio

Project Location

Total Area

(msf)

Area

Launched

(msf)

Area Sold

(msf)

Sales Value (|

crore)

Collectionsin

Q3FY20

(| Crore)

Revenues Recognized

Cummulative (| crore)

OBW Bengaluru 2.2 1.61 1.28 1,230.6 14.2 1,230.6

Kessaku Bengaluru 0.99 0.52 0.27 367.2 28.5 367.2

Total 3.21 2.13 1.55 1,597.80 42.70 1,597.80

Source: ICICI Direct Research, Company




Exhibit 7: Under construction portfolio

Project Partnership/JV/OwnedDevelopment

Potential

Comments

PMC Wakad,

Pune

ISML - alliance with CPPIB (PML Stake:

51%)

1.6 msf

(1.1 msf retail)

All approvals received. Construction commenced in Feb 2019;

Excavation is complete at end of December 2019, foundation work

is on. Basement slabs are being cast

PMC Hebbal,

Bengaluru


51%)

1.8 msf

(1.2 msf retail)

All approvals received. Construction commenced in Feb 2019;

Excavation is complete at end of December 2019, foundation work

is on. Basement slabs are being cast

PMC Indore


51%) 1.0 msf retail All approvals received, construction commenced in June 2019

Palladium,

Ahmedabad 50:50 JV with BSafal group 0.7 msf retail

Construction in Progress. Excavation is complete and foundation

work is on

PMC Lucknow 100% Owned 0.9 msf retail Construction is complete. Fit-outs is in progress. Operations to

commence in Q4FY20E

Total6 msf

(4.9 msf retail)





Financial story through charts

Exhibit 8: Revenues trend

1,193

1,053

1,163

1,262

1,473

63

63

70

97

131

284

315

342

373

396

256

186

375

288

295

- 500 1,000 1,500 2,000 2,500

FY17

FY18

FY19

FY20E

FY21E

(| crore)Retail Commercial Hospitality Residential


Exhibit 9: EBITDA and EBITDA margin trend

847 777 993 1,032 1,177

46.4

48.0

50.1 51.1 51.3

40

44

48

52

56

60

-

250

500

750

1,000

1,250

FY17 FY18 FY19 FY20E FY21E

(%

)

(| crore)

EBITDA EBITDA Margin


Exhibit 10: PAT trend

168 242 421 332 393

9.2

15.0

21.2

16.4 17.1

-

4

8

12

16

20

24

50

150

250

350

450

FY17 FY18 FY19 FY20E FY21E

(%

)

(| crore)

Net Profit Net Profit Margin





Valuation & Outlook

We remain positive on PML given its quality of retail and commercial assets,

healthy balance sheet, strategic expansion plans ahead and quasi play on

India’s consumption story. We note that the company has reported strong

trading density growth in Q3FY20. Moreover, Phoenix Palassio is set to be

operational in Q4FY20E while ~85% area at the mall has been leased at

~105/sq ft per month, which implies rental yield of 15-16% from first year of

operations, which is encouraging. Furthermore, 16-24% retail space is

coming up for renewal in FY21E at leading assets in its portfolio, which

makes a case for a strong mark up in its rental rates. Taking cues from these

levers, we build in a strong increase in rental income, going ahead.

Accordingly, we expect rental income to increase at 16.1% CAGR to

| 2,088.7 crore in FY19-24E. We maintain BUY rating on the stock with an

SoTP based target price of | 1,020/share.

Exhibit 11: Valuation

Type ParametersGAV

(| crore)

Debt

(| crore)

NAV

(| crore)

PML Value

(| crore)

Value/ share (|/

share)

Retail Leasable area (msf)

Retail Operational 5.9 14522 3407 11115 8979 563

Retail under construction 4.5 4797 1231 3565 2221 139

Retail Total 10.4 19,319 4,639 14,680 11,201 702

Commercial Leasable area (msf)

Commercial Operational 1.0 1529 117 1412 1412 89

Commercial under construction 1.8 1226 0 1226 1120 70

Commercial Total 2.8 2,756 117 2,639 2,532 159

Hospitality No of keys

Hospitality Total 588 3,043 546 2,497 1,935 121

Residential Saleable area (msf)

Residential Total 3.7 897 165 732 578 36

Grand Total 17.0 26,014 20,548 16,246 1,018

Rounded Off target price 1,020





Exhibit 12: Recommendation History vs. Consensus

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

0

100

200

300

400

500

600

700

800

900

1,000

Feb-20Nov-19Aug-19May-19Feb-19Nov-18Aug-18May-18Mar-18Dec-17Sep-17Jun-17Mar-17

(%

)(|)

Price Idirect target Consensus Target Mean % Consensus with BUY

Source: Bloomberg, Company, ICICI Direct Research

Exhibit 13: Top 10 Shareholders

Rank NameLatest Filing

Date

% O/S Position (m) Change (m)

1 Ruia International H 30-Jun-19 32.17 49.3 0.0

2 Senior Advisory Serv 30-Jun-19 10.10 15.5 0.0

3 Radhakrishna Ramnara 30-Jun-19 7.61 11.7 0.0

4 Ashok Apparels Pvt L 30-Jun-19 6.30 9.7 0.0

5 Tt International Inv 30-Sep-19 5.35 8.2 1.1

6 Nordea Bank Apb 31-Dec-19 4.40 6.7 -0.2

7 Schroders Plc 30-Jun-19 3.30 5.1 0.2

8 Ruia Atul Ashokkumar 30-Jun-19 2.58 4.0 1.6

9 Fmr Llc 31-Dec-19 2.26 3.5 0.0

10 Na 30-Jun-19 2.19 3.4 1.2

Source: Reuters, ICICI Direct Research

Exhibit 14: Shareholding Pattern

(in %) Dec-18 Mar-19 Jun-19 Sep-19 Dec-19

Promoter 62.8 62.8 62.8 59.2 59.1

Public 37.2 37.2 37.3 40.8 40.9

Others 0.0 0.0 0.0 0.0 0.0

Total 100.0 100.0 100.0 100.0 100.0





Financial summary

Exhibit 15: Profit and loss statement | crore

| crore FY18 FY19 FY20E FY21E

Net Sales 1,619.8 1,981.6 2,020.9 2,295.8

Other Income 55.6 85.1 76.6 76.4

Total revenues 1,675.4 2,066.7 2,097.4 2,372.3

Raw Material Expenses 131.9 218.9 223.2 253.6

Employee Cost 147.3 161.5 164.7 187.1

Other Expenditure 563.2 608.0 600.6 678.3

Total Operating Expenditure 842.4 988.4 988.5 1,119.1

EBITDA 777.4 993.2 1,032.4 1,176.8

Interest 347.6 350.6 357.2 383.1

Depreciation 198.3 204.2 244.3 256.1

PBT 287.1 571.6 499.6 613.9

Tax 75.8 109.9 139.9 184.2

Reported PAT 242.2 421.0 332.2 392.5

EPS (|) 15.8 27.5 21.7 25.6


Exhibit 16: Cash flow statement | crore


Profit after Tax 242.2 421.0 332.2 392.5

Depreciation 198.3 204.2 244.3 256.1

Interest paid 347.7 350.6 357.2 383.1

Cash Flow before wc changes 793.1 1,005.6 1,101.1 1,253.2

Net Increase in Current Assets 175.9 (465.7) 2.8 (173.7)

Net Increase in Current Liabilities 569.6 (251.8) (88.1) 78.6

Net cash flow from op. activities 1,517.7 207.7 876.0 974.0

Purchase of Fixed Assets (1,501.5) (1,464.5) (755.4) (838.6)

(Purchase)/Sale of Investments (1,732.4) (1,234.4) - -

Net cash flow from inv. activities (1,824.9) (1,251.6) (725.7) (804.8)

Proceeds from Long Term Borrowings 1,635.6 420.5 791.7 473.1

Interest paid (351.6) (332.9) (357.2) (383.1)

Net cash flow from fin. activities 277.4 1,052.7 453.8 116.1

Net Cash flow (29.8) 8.8 604.0 285.2

Opening Cash 64.1 30.8 192.0 801.9

Closing Cash 40.6 39.6 801.9 1,087.2


Exhibit 17: Balance sheet | crore


Equity Capital 30.6 30.7 30.7 30.7

Reserves & Surplus 2,821.1 3,443.5 3,795.0 4,213.7

Networth 2,851.7 3,474.1 3,825.6 4,244.3

Total Debt 3,666.5 4,243.5 5,035.2 5,508.3

Other financial liabilities 190.2 176.4 387.6 377.4

Deferred Tax Liability 0.2 0.3 0.3 0.3

Source of Funds 7,175 9,118 10,529 11,482

Gross Block 6,324.2 7,370.4 7,404.0 7,533.8

Less: Accumulated Dep 1,030.3 1,221.5 1,472.0 1,728.2

Net Block 5,293.9 6,148.9 5,932.0 5,805.6

Capital WIP 502.5 896.0 1,617.8 2,326.5

Total Fixed Assets 5,796.4 7,044.9 7,549.8 8,132.2

Investments 497.8 472.2 472.2 472.2

Inventories 661.5 898.6 885.9 974.9

Trade Receivables 129.2 195.5 199.4 226.5

Loans & Advances 31.6 21.2 21.6 24.6

Cash & Bank Balances 40.6 192.0 801.9 1,087.2

Other Current Assets 250.3 285.8 291.4 345.9

Total Current Assets 1,444.4 1,865.9 2,473.0 2,932.0

Trade Payable 109.5 147.7 145.1 164.8

Provisions 104.3 63.0 110.7 119.5

Other Current Liabilities 1,108.7 787.3 442.9 503.2

Total Current Liabilities 1,322.4 998.0 698.8 787.6

Net Current Assets 121.9 867.9 1,774.3 2,144.4

Application of Funds 7,175 9,118 10,529 11,482


Exhibit 18: Key ratios


Per Share Data

Reported EPS 15.8 27.5 21.7 25.6

Cash EPS 28.8 40.8 37.6 42.4

BVPS 186.2 226.9 249.8 277.2

Operating Ratios

EBITDA / Net Sales 48.0 50.1 51.1 51.3

PAT / Net Sales 15.0 18.8 16.1 17.1

Return Ratios

RoE 8.5 10.7 8.5 9.2

RoCE 8.8 9.6 8.2 8.7

RoIC 10.7 11.5 11.3 13.3

Valuation Ratios

EV / EBITDA 21.6 17.4 16.9 15.0

P/E 55.8 32.1 40.7 34.4

EV / Net Sales 10.4 8.7 8.6 7.7

Market Cap / Sales 8.3 6.8 6.7 5.9

Price to Book Value 4.7 3.9 3.5 3.2

Turnover Ratios

Asset turnover 0.2 0.2 0.2 0.2

Gross Block Turnover 0.2 0.3 0.3 0.3

Solvency Ratios

Net Debt / Equity 1.2 1.1 1.0 1.0

Current Ratio 0.8 1.4 2.0 2.0

Quick Ratio 0.3 0.5 0.7 0.8





Exhibit 19: ICICI Direct coverage universe (Real Estate)

CMP M Cap

(|) TP(|) Rating (| Cr) FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E FY19 FY20E FY21E

Oberoi Realty (OBEREA) 520 580 Hold 18,907 22.5 16.4 24.9 22.2 30.5 20.0 14.2 18.8 14.6 2.4 2.2 2.0 10.1 6.9 7.9

The Phoenix Mills (PHOMIL) 882 1,020 Buy 13,507 24.4 21.2 25.6 32.1 40.7 34.4 17.4 16.9 15.0 3.9 3.5 3.2 10.7 8.5 9.2

Brigade Enterprises (BRIENT) 236 275 Buy 4,281 11.7 9.6 4.7 20.1 24.7 50.3 10.5 10.9 10.3 2.2 2.2 2.1 11.1 8.9 4.3

P/E (x)

Sector / Company

EPS (|) EV/EBITDA (x) P/B (x) RoE (%)





RATING RATIONALE

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

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

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

as the analysts' valuation for a stock

Buy: >15%

Hold: -5% to 15%;

Reduce: -15% to -5%;

Sell: <-15%

Pankaj Pandey Head – Research [email protected]

ICICI Direct Research Desk,

ICICI Securities Limited,

1st Floor, Akruti Trade Centre,

Road No 7, MIDC,

Andheri (East)

Mumbai – 400 093

[email protected]




ANALYST CERTIFICATION

I/We, Bhupendra Tiwary, CFA, MBA (Finance), Harsh Pathak, MBA (Finance), Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately

reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. It is also confirmed

that above mentioned Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months and do not serve as an officer, director or employee of the companies

mentioned in the report.

Terms & conditions and other disclosures:

ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities Limited is a Sebi registered

Research Analyst with SEBI Registration Number – INH000000990. ICICI Securities Limited Sebi Registration is INZ000183631 for stock broker. ICICI Securities is a subsidiary of ICICI Bank which is India’s largest private sector bank

and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on

www.icicibank.com

ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship

with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the

securities or derivatives of any companies that the analysts cover.

Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding positions, trading volume etc as opposed to focusing on a company's fundamentals and, as

such, may not match with the recommendation in fundamental reports. Investors may visit icicidirect.com to view the Fundamental and Technical Research Reports.

Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.

ICICI Securities Limited has two independent equity research groups: Institutional Research and Retail Research. This report has been prepared by the Retail Research. The views and opinions expressed in this document may or may

not match or may be contrary with the views, estimates, rating, target price of the Institutional Research.

The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected

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Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in

circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances.

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and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who

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ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or co-

managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction.

ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates or its analysts did not receive any compensation or other

benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts and their relatives have any material conflict of

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Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

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ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.

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