bandhan bank - Choice

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Mar 13, 2018 - As of Dec'31, 2017, BBL operated in 33 States and Union. Territories in India ... opportunities in the gr
“SUBSCRIBE with CAUTION” To

BANDHAN BANK Aggressively Priced

13th

Mar 2018

Salient features of the IPO: • Bandhan Bank Ltd. (BBL), incorporated on December 23, 2014, is a Recommendation Kolkata based lender starting banking operations on Aug’23, 2015. In April 2014, the RBI had granted a banking license to Bandhan Financial Services along with the IDFC. Price Band (per share) • As of Dec’31, 2017, BBL operated in 33 States and Union Territories in India, reaching 11.99 million customers through 887 branches, 2,633 doorstep service centres and 430 ATMs, with 2.13 Face Value million of customers belonging to general banking business. Shares for fresh issue Valuation : At the higher price band of Rs375, BBL’s share is valued at P/ABV multiple of 4.9x (to its post issue FY18 annualized adjusted BVPS) which is at premium compared to industry average P/ABV Shares for OFS multiple of 3.2(x). Below are few key observations of the issue: • BBL strength lies in microfinance business which is transferred by Bandhan Financial Services Limited (BFSL), parent company of bank, when the BBL started banking operations. At that time BFSL was the largest micro financer with 6.77 million customers and 2,022 doorstep service centres (DSCs). • Currently, BBL is among the few institutions in India that combines both micro-banking and general banking with 2,633 DSCs catering to the microbanking customers and 887 branches catering to general banking customers as of Dec’31 2017. • Strong experience in the micro-finance provides an edge for BBL to make better strategies in order to adequately leverage the rising opportunities in the growing Indian retail banking market. Retail advance (micro + other retail loans) accounts for around 91% of advances by Dec’31, 2017. • BBL set a unique business model under which it continued to focus on high yielding micro finance through DSCs and is also garnering low cost deposits through its banking branches. Only 6% of deposits come from micro loan customers while it accounts for 88% of the loan book. DSCs, generally low overhead compared to banking branch, set deep in unbanked areas and every three to four DSCs linked to nearest branch and thereby customers of these DSCs automatically become customers of the associated bank branches, allowing them to open accounts and conduct their banking needs at the associated branch. • As CASA ratio of bank stands at 33.2% by Dec’31 2017, low cost of deposits and high yielding loan helped BBL to maintain NIM over 9% and DSCs & branches hub and spoke model kept C/I ratio at ~35%. • Since the micro loans consists ~88% of book, group based individual lending methodology adopted by BBL helps it to maintain stable assets quality with GNPA ratio at 1.7% and NNPA at 0.8%. However, the bank also escaped from disruption caused by demonetization as it got banking license and accepts old notes as repayment. While, the impact of demonetization had been severe on the businesses on other micro financers like Equitas and Ujjivan among others. • With CAR ratio at 24.9% by Dec’31 2017, the bank is remained well capitalized, further the fresh issue of Rs36,624 mn is likely to augment its capital base and CAR is likely to increase ~30%. • Though the bank has increased its network pan India, business is much more inclined towards the East & Northeast area with share of ~80% and ~56% of loan portfolio and branch network. Due to high exposure to some particular region, there is an unsystematic risk to business considering crisis in the southern state of Andhra Pradesh in 2010 led to significant pressure on micro-lenders. • BBL is expanding into the retail and SME segments which are not as high yielding as micro segment. With the continuity in fullfledged banking operations, margin of the bank is likely to tilt downward to industry average (NIM :~5%) going forward. • Issue is aggressively priced as BBL is demanding valuation of Rs4,47,301.9 mn valued at P/ABV at 4.9(x) to FY18 annualized adjusted BVPS, making it the 7th most valuable lender. Valuation is expensive compared to RBL Bank at 3.2x, Federal Bank at 1.7x and even higher to well managed banks like Yes Bank at 3.2x, Indusind Bank at 4.8x. Considering all these factors, we are of the view that the issue is aggressively priced factoring all fundamental positives and leaving limited space for further upside. Thus, we assign ‘Subscribe with Caution’ rating to the issue.

Subscribe with Caution Rs370-375 Rs10

97.7 mn 21.6 mn

Fresh issue size

Rs36,624 mn

Total Issue Size (on Higher Price Band)

Rs44,730.2 mn

Bidding Date

Mar 15, 2018 - Mar 19, 2018

MCAP on Higher Price Band

Rs4,47,301.9 mn

Book Running Lead Manager

Kotak Mahindra Capital Company Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, JM Financial Limited, J.P. Morgan India Private Limited

Registrar

Karvy Computershare Private Limited

Industry detail Allocation

Software Products

Qualified Institutional Investors (QIBs)

50%

Non Institutional Investors (NII) Retail Individual Investors (RII)

15% 35%

Pre and post issue shareholding pattern Pre - Issue Promoter and Promoter 89.6% Group Non- promoter 10.4% Total 100.0%

Post - Issue 82.3% 17.7% 100.0%

Retail Application Money at Higher Cut-Off Price per Lot Number of Shares per Lot Application Money

40 Rs15,000

Research Analyst Satish Kumar

Desk Phone - 022 - 6707 9999; Ext: 913 e mail: [email protected]

1 © CHOICE INSTITUTIONAL RESEARCH

About the issue: •

BBL is coming up with an initial public offering (IPO) with 97.7 mn shares as a fresh issue and 21.6 shares as offer for sale (OFS). Post issue promoter’s holding will reduce to 82.3% and non-promoter shareholding will increase to 17.7% .



The issue will open on 15th Mar 2018 and close on 19th Mar 2018.



Not more than 50% of the issue will be allocated to qualified institutional buyers. Further, not less than 15% of the issue will be available for non-institutional bidders and not less than 35% for retail investors.



Total issue size is Rs44,730.2 mn on higher price band out of which ~18% is OFS.



IPO is taken mainly to comply the RBI guidelines under which the entity which get the banking license to list the stock on exchanges within three years of getting the banking license. Post-listing promoter holding of 82% will have to be locked-in for one year as per market regulator SEBI regulations and thereby the bank is likely to miss another RBI requirement that of bringing down promoter holding to 40% within three years of listing.



World bank’s subsidiaries namely IFC and its arm IFC FIG are selling their 21.6 mn shares as OFS. Post issue, their shareholding will reduce to 2.7% compared to pre-issue holding of 4.94%.



Anchor book of the issue will open on 14th March 2018

Pre and post issue shareholding pattern Pre - Issue 89.6% 10.4% 100.0%

Promoter and Promoter Group Public Total

About the issue: •

Post – Issue 82.3% 17.7% 100.0%

Source: Choice Broking Research, Company data, RHP

The company will receive Rs36,624 mn as a fresh issue.

Objective of the offer To augment Bank’s Tier-I capital base to meet Bank’s future capital requirements

Source: Choice Broking Research, Company data, RHP

Unblocking of ASBA Account 23-Mar-2018

Offer Closes on 19-Mar-2018 Offer Opens on 15-Mar-2018

Finalization of Basis of Allotment 22-Mar-2018

Listing on Stock Exchanges 27-Mar-2018 Credit to Demat Accounts 26-Mar-2018

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Company Introduction: Bandhan Bank Ltd. (BBL) is incorporated on December 23, 2014, with a focus on serving under banked and underpenetrated markets in India. After getting banking licenses from RBI, the BBL, Kolkata based lender, began operations on August 23, 2015 and started offering a variety of asset and liability products and services designed for micro banking and general banking, as well as other banking products and services to generate non-interest income. At the time of starting banking operations, Bandhan Financial Services Limited (BFSL), the parent company of bank, transferred its entire microfinance business to BBL including a network of 2,022 doorstep service centres (DSCs) and 6.77 million micro loan customers which the bank has increased to 2,633 DSCs and 9.86 million micro loan customers as of Dec’31, 2017. On distribution network, BBL has 887 bank branches and 430 ATMs together serving over 2.13 million general banking customers. However the business of the bank is much more inclined towards the East and Northeast India, with West Bengal, Assam and Bihar together accounting for 56.4% and 57.6% of branches and DSCs as of Dec’ 31, 2017. Further, 29.1% of banking outlets were located in un banked rural areas. CASA ratio of the bank stood at 33.2% as on Dec’31 2017 with retail to deposits ratio standing at 85.1%. Due to high exposure to micro loan customers, 96.5% of gross advances were in priority sector lending (PSL), a way higher than RBI requirement, enabling the bank to generate additional stream of non-interest income by selling the PSL certificates to other banks.

BBL offers loans to individuals and micro, small and medium enterprises. The following table sets forth a breakdown of advances :Break-out of advances Micro loans Small enterprise loans SME loans Other retail loans Total

Mar 31' 2016 122,776.2 993.9 605.4 124,375.5

Dec 31' 2016 147,619.0 5,071.8 7,437.4 2,097.4 162,225.6

Mar 31' 2017 146,835.1 10,542.1 7,091.7 3,921.9 168,390.8

Dec 31' 2017 200,779.9 12,211.3 9,051.5 7,264.8 229,307.5

Source: Choice Broking Research, Company data, RHP

Micro Loans: Eastern region accounts for around 60% of the advances. Microloans are group-based individual loans, which are loans provided to individuals who form a group. Group based micro lending plays a key role for checking the NPA as other group members encourage the defaulting member to make timely payments. The bank extends microloans exclusively to women from low-income households, although loan proceeds may be used for business activities that are run by the woman’s family, including a husband. Women are a positive influence on loan repayment in their household because they are generally more risk averse, cooperate better in groups and are generally more accessible than their working husbands. Micro loan has a tenures of up to 2 years with a maximum loan amount of Rs150,000. BBL reach micro loan customers largely through extensive network of doorstep service centres, which are low overhead banking outlets located nearby customers. Given their low overhead, DSCs are a cost effective means of reaching micro loan customers, who generally are under banked.

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Company Introduction: Other retail loans: Retail lending business provides loan products targeted primarily at individuals for meeting their personal and business requirements, such as housing and mortgage loans, two wheeler loans, personal loans, loans against property, loans against term deposits and gold loans. Retail loans are sourced through branches.

Source: Choice Broking Research, Company data, RHP

BBL operate DSCs and branches on a hub and spoke model, whereby on average every three to four DSCs are linked to a corresponding bank branch in their area. Customers of these DSCs automatically become customers of the associated bank branches, allowing them to open accounts and conduct their banking needs at the associated branch. Through DSCs, the bank is able to provide personalized services in close proximity to customers. Moreover, this “hub and spoke” model provides with a low cost means of extending network deep into under banked areas in India, as DSCs have low overhead. For example, DSC employees use handheld devices connected via the Internet to core banking system to process loan applications, allowing to keep IT costs low compared to a bank branch, which requires full-fledged computer terminals. This low-cost model is demonstrated by operating cost-to- income ratio was 35.4% and 36.3% for the nine months ended Dec’31, 2017 and for FY 2017, respectively. On the liability front, the bank provides all types of deposits facility. The break-out of deposits is given below:

Source: Choice Broking Research, Company data, RHP

BBL has maintained a stable assets quality with GNPA and NNPA stood at 1.7% and 0.8% by Dec’31, 2017. Strong NPA position is largely driven by group-based individual lending model, focus on income generating loans made to women, strong systems to track loan utilization, monitor credit and ensure collection, and extensive risk management practices.

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Competitive Strengths: • • • • • •

Operating model focused on serving underbanked and underpenetrated markets Consistent track record of growing a quality asset and liability franchise Extensive, low cost distribution network Customer-centric approach Consistent financial performance and robust capital base Experienced and professional team, backed by strong independent board

Business Strategy: • • • •



Maintain focus on micro lending while expanding further into other retail and SME lending Continue to strengthen liability franchise Boost share of non-interest income Enhance digital platform to improve customer acquisition and retention and reduce costs Enhance retail banking systems and procedures to improve efficiency

Risk and Concerns: • •



Contracting margin Sensitivity of business to a particular area; eastern region of the country Increasing competition in micro as well as banking industry

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Peer Comparison and Valuation: Peer Comparison Companies Bandhan Bank Axis Bank Ltd. Bank Of Baroda HDFC Bank Ltd. ICICI Bank Ltd. Indian Bank IndusInd Bank Ltd. The Federal Bank Ltd. RBL Bank Ltd. DCB Bank Yes Bank Ltd. Average

Companies (Rs mn) Bandhan Bank Axis Bank Ltd. Bank Of Baroda HDFC Bank Ltd. ICICI Bank Ltd. Indian Bank IndusInd Bank Ltd. The Federal Bank Ltd. RBL Bank Ltd. DCB Bank Yes Bank Ltd. Average

100 CMP (Rs/s) 375 520 134 1851 297 282 1696 90 456 158 308 688.2

100.00 6M R% 5.5% -1.8% 3.6% 1.7% 3.6% 0.0% -19.3% -15.0% -17.4% -14.0% -1.5%

12M R% 2.0% -15.6% 33.1% 19.0% 0.1% 27.7% 6.1% -4.8% 1.2% 4.6% 9.2%

M Cap P/ABV (Rs mn) 447,301.9 4.9 1,333,716.6 2.5 310,409.0 1.5 4,795,440.6 4.9 1,907,413.8 2.4 135,346.3 1.0 1,017,069.1 4.8 176,578.2 1.7 190,189.5 3.2 48,525.0 1.9 707,539.9 3.2 1,467,258.8 3.2

PAT TTM ADV TTM Dep TTM NII TTM Gr Gr (%) Gr (%) Gr (%) (%) 5.6% -20% -141% 20% -8% 23% 24% 69.5% 47% 8.2% 27% -5.9%

76.2% 21% 14% 28% 10% 14% 39% 69.6% 94% 55.6% 86% 36.9%

45.2% 10% -3% 10% 11% 15% 52% 39.1% 80% 51.7% 59% 30.0%

20.3% 4% 14% 22% 8% 23% 26% 20.6% 46% 27.7% 34% 21.7%

NIM (%) 7.8% 3.6% 3.2% 4.3% 3.1% 2.9% 4.0% 3.3% 3.9% 4.1% 3.5% 3.5%

CAR (%) 32.0% 17.5% 11.6% 15.5% 17.7% 12.4% 15.8% 14.4% 15.0% 15.8% 18.4% 15.4%

RoE (%) 18.5% 5.6% 2.0% 16.5% 7.4% 8.0% 15.5% 8.4% 9.3% 8.7% 16.9% 9.4%

EPS (Rs)

Adj. BVPS (Rs)

NNPA

PAT TTM

9.85 14.4 3.6 64.4 12.1 30.1 56.8 5.0 14.1 7.6 17.2 23.8

76.60 209.7 90.0 379.5 125.6 272.2 356.2 53.8 142.2 81.9 94.9 197.9

1,841.2 117694.9 198521.5 27,736.6 238,102.5 48,986.0 5,922.0 11,566.8 3,578.4 1,614.7 15,950.8 169747.4

12,769.3 36,895.2 8,252.5 166,775.6 77,820.7 14,467.2 34,045.1 9,904.5 5,871.0 2,339.9 39,592.3 46,294.2

Source: Choice Broking Research, Company data, RHP

Below are few key observations of the issue: • • •



• •

• •

RoA (%) 3.3% 0.6% 0.1% 1.8% 1.0% 0.6% 1.7% 0.8% 1.1% 0.9% 1.7% 1.0%

C/I (%) 35.4% 45.3% 43.9% 41.3% 40.8% 42.3% 45.8% 51.3% 52.9% 59.8% 40.5% 45.1%

CASA (%) 33.2% 49.0% 40.6% 43.9% 50.4% 36.5% 42.9% 33.0% 24.0% 26.0% 38.0% 41.7%

GNPA (%) 1.1% 5.3% 11.3% 1.3% 7.8% 6.3% 1.2% 2.5% 1.6% 1.9% 1.7% 4.9%

NNPA (%) 0.8% 2.6% 5.0% 0.4% 4.2% 3.3% 0.5% 1.4% 1.0% 0.9% 0.9% 2.5%

Business Business No. of Net Worth Rs bn /Branch Shares

Share Capital

FV (Rs/s)

482.2 8,298.9 9,726.5 13,302.4 10,227.9 3,378.7 2,646.2 1,778.6 701.5 379.6 3,066.7 9,930.6

11,928 5128.2 4620.9 5180.2 12846.7 4802.9 5997.4 3,932.7 4175.4 3,079.0 4597.4 6,550.5

10 2 2 2 2 10 10 2 10 10 2 4.6

543.7 2,312.3 1,782.1 2,810.0 2,104.5 1,234.9 2,004.7 1,420.6 2,851.4 1,220.6 2,920.6 2,231.8

C/D (%) 90.7% 102.9% 69.7% 90.3% 97.7% 70.1% 87.1% 83.0% 91.8% 84.6% 94.1% 86.5%

93,602.3 655,476.5 406,371.1 1,010,625. 1,044,946. 179,735.4 219,566.1 117,355.9 62,942.9 26,835.8 234,157.8 633,527.3

1,193 2,564.1 2,310.5 2,590.1 6,423.4 480.3 599.7 1,966.4 417.5 307.9 2,298.7 2,822.1

BBL’s Adj BVPS, CAR, NIM, RoE, C/I, C/D number considered on annualized FY18 basis. Peers numbers considered latest reported basis .

BBL strength lies in microfinance business which is transferred by Bandhan Financial Services Limited (BFSL), parent company of bank, when the BBL started banking operations. At that time BFSL was the largest micro financer with 6.77 million customers and 2,022 doorstep service centres (DSCs). Strong experience in the micro-finance provides an edge for BBL to make better strategies in order to adequately leverage the rising opportunities in the growing Indian retail banking market. Retail advance (micro + other retail loans) accounts for around 91% of advances by Dec 31, 2017. BBL set a unique business model under which it continue to focus on high yielding micro finance through DSCs and is also garnering low cost deposits through its banking branches. Only 6% of deposits come from micro loan customers while it accounts for 88% of the loan book. DSCs, generally low overhead compared to banking branch, set deep in unbanked areas and every three to four DSCs linked to nearest branch and thereby customers of these DSCs automatically become customers of the associated bank branches, allowing them to open accounts and conduct their banking needs at the associated branch. Since the micro loans consists ~88% of book, group based individual lending methodology adopted by BBL helps it to maintain stable assets quality with GNPA ratio at 1.7% and NNPA at 0.8%. However, the bank also escaped from disruption caused by demonetization as it got banking license and accepts old notes as repayment. While, the impact of demonetization had been remained severe on the businesses on other micro financers like Equitas and Ujjivan among others. With CAR ratio at 24.9% by Dec’31 2017, the bank is remained well capitalized, further the fresh issue of Rs36,624 mn is likely to augment its capital base and CAR is likely to increase ~30%. Though the bank has increased its network pan India, business is much more inclined towards the Northeast area with share of 80.8% and 56.4% of loan portfolio and branch network as of Dec 31 2017. Due to high exposure to some particular region, there is an unsystematic risk to business considering crisis in the southern state of Andhra Pradesh in 2010 led to significant pressure on micro-lenders. Further ~90% of the loan book is unsecured. BBL is expanding into the retail and SME segments which are not as high yielding as micro segment. With the continuity in full-fledged banking operations, margin of the bank is likely to tilt downward to industry average (NIM :~5%) going forward. Issue is aggressively priced as BBL is demanding valuation of Rs4,47,301.9 mn valued at P/ABV at 4.9(x) to FY18 annualized adjusted BVPS, making it the 7th most valuable lender. Valuation is expensive compared to RBL Bank at 3.2x, Federal Bank at 1.7x and even higher to well managed banks like Yes Bank at 3.2x, Indusind Bank at 4.8x. Considering all these factors, we are of the view that the issue is aggressively priced factoring all fundamental positives and leaving limited space for further upside. Thus, we assign ‘Subscribe with Caution’ rating to the issue.

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Financial Statements (Rs mn) Profit And Loss Statement Interest Earned Growth (%) Interest Expended Growth (%) Net Interest Income

FY16 15,813.6 6,485.3 9,328.4

Other Income 1,498.9 % of Interest Income 9.5% Total Income 10,827.3 Growth (%) 13514.1% Operating & Other expenses 6,159.2 Pre-Prov. Operating Profit 4,668.1 Provisions and contigencies (incl NPA) 533.0 P&C % of Advances 0.4% Operating Profit before Tax 4,135.1 Growth (%) 17839.7% Pre-tax Margin % 38.2% Tax 1,382.6 % of PBT 33.4% Profit after tax (PAT) 2,752.5

FY17 39,087.1 147.2% 15,052.1 132.1% 24,035.0

9MFY18 34,517.0 -11.7% 12,828.7 -14.8% 21,688.3

FY18E 46,022.7 33.3% 17,104.9 33.3% 28,917.8

4,114.1 10.5% 28,149.1 160.0% 10,220.1 17,929.1 884.4 0.5% 17,044.7 312.2% 60.6% 5,925.2 34.8% 11,119.5

5,028.1 14.6% 26,716.4 -5.1% 9,453.4 17,263.0 2,651.3 1.2% 14,611.8 -14.3% 54.7% 5,034.8 34.5% 9,577.0

6,704.1 14.6% 35,621.8 33.3% 12,604.5 23,017.4 3,535.0 1.2% 19,482.3 33.3% 54.7% 6,713.0 34.5% 12,769.3

Balance Sheet FY16 FY17 Cash and balance with Reserve Bank of India…….. 8,102.9 60,120.7 Balances with banks and money at call and 23,631.1 short notice 13,529.3 Investments 37,580.3 55,164.9 Advances 124,375.5 168,390.7 Fixed assets 2,372.3 2,517.9 Other assets 1,502.9 2,637.4 TOTAL ASSETS 197,565.0 302,360.8

9MFY18 FY18E 12,587.1 16,782.8 11,332.0 36,911.8 72,911.6 97,215.5 229,307.5 305,743.3 2,329.8 3,106.4 3,724.5 4,966.0 332,192.6 464,725.8

Capital 10,951.4 10,951.4 10,951.4 11,928.0 Reserves and Surplus 22,393.6 33,513.1 43,090.1 81,929.8 Deposits 120,887.5 232,286.6 252,939.6 337,252.7 Borrowings 30,516.5 10,289.4 13,306.9 17,742.6 Other liabilities and provisions 12,816.0 15,320.4 11,904.5 15,872.7 TOTAL CAPITAL AND LIABILITIES…...…… 197,565.0 302,360.9 332,192.6 464,725.8

Financial Ratios FY16 FY17 9MFY18 FY18E Return / Profitability Ratios (%) Net interest margin 11.02% 10.44% 9.9% 7.8% Cost of funds 9.7% 7.9% 7.2% 7.2% Interest spread 9.0% 9.1% 8.5% 7.8% Restated EPS (Rs) 2.3 9.3 8.0 10.7 RoA 3.1% 4.5% 4.1% 3.3% RoE 16.0% 28.5% 25.6% 18.5% Operating ratios (%) Credit to Deposit 102.9% 72.5% 90.7% 90.7% Cost to income 56.9% 36.3% 35.4% 35.4% CASA (share) 21.6% 29.4% 33.2% 35.0% Opex/average assets 6.9% 4.1% 4.0% 3.3% Non interest income / Total income 13.8% 14.6% 18.8% 18.8% Capital adequacy (%) Tier-1 capital adequacy ratio 26.7% 24.8% 23.5% 30.7% Tier-2 capital adequacy ratio 2.3% 1.6% 1.4% 1.3% Total capital adequacy ratio (Basel III) 29.0% 26.4% 24.9% 32.0% Equity / Assets 16.9% 14.7% 16.3% 20.2% Loans / Assets 63.0% 55.7% 69.0% 65.8% Investments / Assets 19.0% 18.2% 21.9% 20.9% Asset Quality ratios (%) GNPA 0.2% 0.5% 1.7% 1.6% NNPA 0.1% 0.4% 0.8% 0.7% Provisions Coverage Ratio 45.5% 29.1% 52.3% 53.0% Slippage Ratio 0.2% 0.7% 1.6% 1.6% Per Share Data (Rs) Restated EPS (Rs) 2.31 9.32 8.03 10.71 BVPS 28.0 37.3 45.3 78.7 Adjusted BVPS 27.9 36.8 43.8 76.8 Valuation ratios (x) P/E (x) 162.5 40.2 46.7 35.0 P/BV (x) 13.4 10.1 8.3 4.8 P/ABV (x) 13.5 10.2 8.6 4.9 Growth ratios YoY (%) Advances 35.4% 41.4% 76.2% Deposits 92.2% 30.0% 45.2% Net interest income 157.7% 26.6% 20.3% PAT 304.0% 21.3% 14.8% Business ratios Profit per branch (Rs mn) 4.2 13.2 10.8 14.2 Source: Choice Broking Company data, RHP Business per branch (Rs mn) 373.9 477.0Research,543.7 714.4 Source: Company RHP

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Fundamental Research Team Email id

Name

Designation

Sunder Sanmukhani

Head-Fundamental Research

[email protected]

Contact No. 022 - 6707 9910

Satish Kumar

Research Analyst

[email protected]

022 - 6707 9913

Rajnath Yadav

Research Analyst

[email protected]

022 - 6707 9912

Aman Lamba

Research Associate

[email protected]

022 - 67079917

Dhruv Thakkar

Research Associate

[email protected]

022 - 67079916

Shrey Gandhi

Research Associate

[email protected]

022 - 67079914

Rahul Agarwal

Research Associate

[email protected]

022 - 67079915

12

Disclaimer This is solely for information of clients of Choice Broking and does not construe to be an investment advice. It is also not intended as an offer or solicitation for the purchase and sale of any financial instruments. Any action taken by you on the basis of the information contained herein is your responsibility alone and Choice Broking its subsidiaries or its employees or associates will not be liable in any manner for the consequences of such action taken by you. We have exercised due diligence in checking the correctness and authenticity of the information contained in this recommendation, but Choice Broking or any of its subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this recommendation or any action taken on basis of this information. This report is based on the fundamental analysis with a view to forecast future price. The Research analysts for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report. Choice Broking has based this document on information obtained from sources it believes to be reliable but which it has not independently verified; Choice Broking makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. The opinions contained within the report are based upon publicly available information at the time of publication and are subject to change without notice. The information and any disclosures provided herein are in summary form and have been prepared for informational purposes. The recommendations and suggested price levels are intended purely for stock market investment purposes. The recommendations are valid for the day of the report and will remain valid till the target period. The information and any disclosures provided herein may be considered confidential. Any use, distribution, modification, copying, forwarding or disclosure by any person is strictly prohibited. The information and any disclosures provided herein do not constitute a solicitation or offer to purchase or sell any security or other financial product or instrument. The current performance may be unaudited. Past performance does not guarantee future returns. There can be no assurance that investments will achieve any targeted rates of return, and there is no guarantee against the loss of your entire investment. POTENTIAL CONFLICT OF INTEREST DISCLOSURE (as on date of report) Disclosure of interest statement – • Analyst interest of the stock /Instrument(s): - No. • Firm interest of the stock / Instrument (s): - No.

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