2QFY2016 Result Update | Tyres
November 9, 2015
TVS Srichakra
BUY
CMP
`2,803
Performance Update
Target Price
`3,240
Y/E March (` cr)
2QFY2016
2QFY2015
% chg (yoy) 1QFY2016
% chg (qoq)
Investment Period
12 Months
Total Income
522
491
6.5
504
3.7
EBITDA
82
51
62.0
83
(1.1)
Stock Info
EBITDA margin (%)
15.7
10.3
539
16.5
(77)
Adj PAT
49
26
86.9
49
(0.6)
Sector
Tyres
Source: Company, Angel Research
Market Cap (` cr)
2,146
TVS Srichakra (TVSSl) reported a good set of numbers for 2QFY2016. The
Beta
1.1
top-line grew by 6.5% yoy to `522cr. The EBITDA margin expanded by 539bp yoy
Net debt (` cr)
164
to 15.7%, mainly due to a 997bp yoy decline in raw material cost (owing to
52 Week High / Low
3,249 / 1,192
rubber prices declining by ~6% qoq). The company has reduced the debt
Avg. Daily Volume
5,010
significantly (from `176cr to `37cr) in 1HFY2016 and as a result its interest
Face Value (`)
10
expense has declined by 57.0% yoy to `4cr. Owing to better operational
BSE Sensex
26,265
performance and lower interest outgo, the net profit nearly doubled to `49cr from
Nifty
7,954
`26cr in the same quarter of the previous year.
Reuters Code
TVSC.BO
Steady two-wheeler (2W) sales and capacity expansion by top clients to
Bloomberg Code
SRTY IN
aid top-line growth: TVSSL’s key client Honda Motorcycle & Scooter India
(HMSI) continues to be the steady performer in comparison to its peers. HMSI has
set out aggressive plans to scale up its business in India with a view to become the
Shareholding Pattern (%)
largest subsidiary of its parent. HMSI has mentioned that capacity constraints had
Promoters
45.4
resulted in the company not being able to grow at a faster pace and has lined up
MF / Banks / Indian Fls
1.7
aggressive capex plans for the future. We expect capacity addition by major
FII / NRIs / OCBs
0.1
clients to result in good revenue visibility for TVSSL as it is a market leader in the
Indian Public / Others
52.8
2W OEM segment. Additionally, the company (TVSSL) wants to garner a larger
share in the high margin replacement market segment where it holds the number
three position. The strong growth experienced in 2W sales in the past year will
Abs.(%)
3m 1yr
3yr
result in better performance for the aftermarket segment of the company.
Sensex
(7.2)
(5.8)
39.6
Outlook and valuation: We expect TVSSL’s top-line to grow at a CAGR of 11.0%
TVSSL
(2.5)
131.4
828.0
over FY2015-17E to `2,338cr. We expect the operating margin to be at 15.0% in
FY2017E on the back of lower rubber prices and improvement in market share in
3 year price chart
the aftermarket segment. Consequently, the net profit is expected to be at `207cr in
FY2017E. At the current market price, the stock is trading at a PE of 10.4x its FY2017E
3,550
earnings. We have a Buy rating on the stock with a revised target price of `3,240
3,050
2,550
based on a target PE of 12.0x for FY2017E earnings.
2,050
1,550
Key financials
1,050
Y/E March (` cr)
FY2013
FY2014
FY2015E
FY2016E
FY2017E
550
Net sales
1,476
1,671
1,896
2,101
2,338
50
% chg
5.1
13.2
13.5
10.8
11.3
Net profit
36
47
104
190
207
% chg
(10.3)
33.0
118.8
83.4
8.6
EBITDA margin (%)
5.7
7.2
11.5
15.7
15.0
Source: Company, Angel Research
EPS (`)
46.6
61.9
135.6
248.6
270.0
P/E (x)
60.2
45.2
20.7
11.3
10.4
P/BV (x)
12.6
10.5
7.8
4.9
3.5
RoE (%)
22.8
25.3
43.3
53.4
39.6
RoCE (%)
13.3
17.7
33.7
45.1
38.7
Milan Desai
EV/Sales (x)
1.6
1.5
1.2
1.1
0.9
39357800 ext: 6846
EV/EBITDA (x)
27.3
20.2
10.6
6.7
6.0
[email protected]
Source: Company, Angel Research; Note: CMP as of November 6, 2015.
Please refer to important disclosures at the end of this report
1
TVS Srichakra | 2QFY2016 Result Update
Exhibit 1: 2QFY2016 performance
Y/E March (` cr)
2QFY2016
2QFY2015
% chg (yoy)
1QFY2016
% chg (qoq)
1HFY2016
1HFY2015
% chg
Net Sales
522
491
6.5
504
3.7
1,026
942
9.0
Net raw material
271
304
(10.7)
258
5.2
529
581
(8.8)
(% of Sales)
52.0
61.9
(997)
51.2
75
51.6
61.7
(1,005)
Staff Costs
46
43
6.1
51
(10.1)
97
79
23.5
(% of Sales)
8.8
8.8
(3)
10.1
(135)
9.5
8.3
111
Other Expenses
123
93
32.4
111
10.2
234
192
22.2
(% of Sales)
23.5
18.9
460
22.1
137
22.8
20.4
247
Total Expenditure
440
440
0.1
421
4.7
861
851
1.2
Operating Profit
82
51
62.0
83
(1.1)
165
91
82.1
OPM
15.7
10.3
539
16.5
(77)
16.1
9.6
647
Interest
4
8
(57.0)
5
(29.5)
9
18
(52.3)
Depreciation
10
7
41.6
10
0.4
20
14
48.2
Other Income
1
1
95.2
2
(43.8)
3
1
375.0
Exceptional Item
-
-
-
-
-
PBT
70
36
95.0
70
(0.6)
140
59
135.2
(% of Sales)
13.3
7.3
13.9
13.6
6.3
Tax
21
10
116.9
21
(0.5)
42
16
161.6
(% of PBT)
30.0
27.0
30.0
30.0
27.0
Reported PAT
49
26
86.9
49
(0.6)
98
43
125.5
Adjusted PAT
49
26
49
98
43
PATM
9.3
5.3
9.7
9.5
4.6
Equity capital (cr)
8
8
8
8
8
EPS (`)
63.5
34.0
86.9
63.9
(0.6)
127.5
56.5
125.5
Source: Company, Angel Research
Exhibit 2: Actual vs. Angel estimate (2QFY2016)
(` cr)
Actual (` cr)
Estimate (` cr)
% variation
Total Income
522
532
(1.8)
EBIDTA
82
86
(4.4)
EBIDTA margin
15.7
16.1
(43)
Adj. PAT
49
50
(2.2)
Source: Company, Angel Research
Top-line slightly below estimates, overall numbers in-line.
TVSSL’s top-line for 2QFY2016 grew by 6.5% yoy to `522cr, against our estimate
of `532cr. This is a positive considering that it is purely a 2-wheeler tyre
manufacturer and 2W sales have been lackluster in the current financial year. The
EBITDA margin has expanded by 539bp yoy to 15.7%, mainly due to 997bp yoy
decline in raw material cost (owing to rubber prices declining by ~6% qoq basis).
We had built in an EBITDA margin estimate of 16.1%. The company has reduced
the debt significantly (from `176cr to `37cr) in 1HFY2016 and as a result its
interest expense has declined by 57.0% yoy to `4cr. Owing to better operational
performance and lower interest outgo the net profit nearly doubled to `49cr from
`26cr in the same quarter of the previous year (against our estimate of `50cr).
November 9, 2015
2
TVS Srichakra | 2QFY2016 Result Update
Exhibit 3: Top-line maintaining good growth
Exhibit 4: Lower RM cost led to margin expansion
600
30.0
EBITDA margin (LHS)
RM cost/sales (RHS)
Revenue (LHS)
yoy growth (RHS)
500
18.0
16.5
15.7
80.0
66.2
21.0
16.0
66.9
64.7
61.9
70.0
61.4
13.8
400
18.5
20.0
57.6
14.0
60.0
17.2
300
14.7
17.9
12.0
50.0
12.8
56.1
11.2
11.7
10.0
52.0
40.0
200
10.0
51.2
10.3
8.0
30.0
6
.5
8.6
8.9
100
6.0
20.0
1.8
6.8
4.0
7.4
10.0
0
0.0
2.0
0.0
Source: Company, Angel Research
Source: Company, Angel Research
November 9, 2015
3
TVS Srichakra | 2QFY2016 Result Update
Investment rationale
Steady performance of HMSI coupled with capacity addition by major
clients to ensure revenue visibility
The 2W and 3W industry lost momentum in the past three quarters, after a good
showing over the previous few quarters. 2W sales have remained flat for the past
three quarters, posting a decline of 1.7% in 2QF2016. As far as OEMs are
concerned, TVSSL is a market leader with HMSI, Hero MotoCorp (HMCL), TVS
Motor Company (TVS), Bajaj Auto and India Yamaha Motor (Yamaha) featuring
among its major clients. HMSI and TVS along with Yamaha have been the only
manufacturers to post growth figures while HMCL and Bajaj Auto posted declines
of 8.5% yoy and 0.8% yoy, respectively. Subdued rainfall which has set back rural
consumption of 2Ws and early festive season last year have resulted in subdued
numbers for the current year. However, the October month numbers are
encouraging owing to the onset of the festive season. For the month of October,
HMSI has grown at 19% yoy while HMCL and TVS Motors have performed in-line
with the industry numbers.
Exhibit 5: 2W/3W production growth (yoy)
Exhibit 6: 2W sales growth by manufacturer (yoy)
2-wheeler
3-wheeler
35.0
Bajaj
HMCL
HMSIL
TVS
Yamaha
26.6
25.0
50.0
19.9
15.8
20.4
15.0
11.9
30.0
9.0
14.0
5.4
5.0
10.0
4.3
6.9
(0.5)
(1.0)
3.6
0.2
(5.0)
0.2
(1.7)
(10.0)
(11.8)(7.7)
(15.0)
(30.0)
2QFY14
4QFY14
2QFY15
4QFY15
2QFY16
3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16
Source: Company, Angel Research
Source: Company, Angel Research
In order to grow at a rapid pace in India, HMSI has set out aggressive plans to
strengthen its 2W operations in India. The company’s current capacity stands at
4.6mn units per year which it plans to expand to 6.4mn units over the next two
years. HMSI is positive on its growth prospects in India and has citied capacity
constraints faced by the company being the major reason behind its aggressive
capacity expansion plan. Along the same line, HMCL has also undertaken
expansion plans and its capacity is set to touch the 7.9mn units per year mark in
FY2017E from the present 7.7mn units per year.
Exhibit 7: Capex plans for major clients
Client
Current Capacity
Increase FY17E Capacity
Increase %
HMSI
4.6mn
1.8mn
6.4mn
39.1
HMCL
7.65mn
2.25mn
9.9mn
29.4
Source: Company, Angel Research
November 9, 2015
4
TVS Srichakra | 2QFY2016 Result Update
We believe that given its market leadership position in the OEM segment, TVSSL
stands to benefit from the expected increase in volume arising out of expansion
programs undertaken by its key clients.
Agreement with Michelin adds to revenue visibility
TVSSL has entered into an agreement with French Tyre major Michelin to
manufacture 2W bias tyres designed by Michelin at its Madurai facility. As per the
agreement, TVVSL would contract manufacture 2W bias tyres under the Michelin
brand name and it will also be manufacturing some tyres from its own range of
2W tyres. TVSSL is in the process of continuously expanding its capacity to 2.3 lakh
tyres per month by FY2016E which will aid in carrying out the agreement.
Although the terms of the agreement are not available, we believe that this is a
positive development for the company as it leads to better revenue visibility.
Higher share in Aftermarket segment to aid growth
The company is looking to focus on the aftermarket segment, which has higher
margins, with an aim to increase its market share. According to the Management,
the company ranks third in terms of market share in the aftermarket segment. The
company has been consistently growing in the aftermarket segment over the past
two years which has enabled it to consistently outperform the industry growth rate.
Stable rubber prices to help in sustaining margins
Natural Rubber(NR) has been trading at lower levels in the recent past leading to
tyre companies reporting all time high margins. NR prices are unlikely to increase
significantly tracing high global inventory levels and slowdown in demand from
China. Moreover, price of SBR (synthetic rubber) is expected to remain under
pressure tracing weakness in butadiene prices.
Despite of Thai government’s effort to shore up NR prices by restricting supply, NR
continues to show no signs of gaining strength and is likely to remain range bound
from current levels. NR currently trades at `111/kg in the domestic market; we
expect it to likely trade at the levels of ~`130/kg in the near future.
Exhibit 8: International vs. Domestic rubber price trend
230
Domestic Price
International Price
210
190
170
150
130
110
111
90
70
80
50
Source: Angel Research
November 9, 2015
5
TVS Srichakra | 2QFY2016 Result Update
Financial performance
On the back of better performance by HMSI and capacity addition undertaken by
major clients, we expect TVSSL to perform well. We expect its top-line to grow at a
CAGR of 11.0% over FY2015-17E to `2,338cr. The company is confident of
smooth revenue flow backed by strong growth in its major OEM consumer
segment and is also focusing on increasing its market share in the aftermarket
segment. Raw material cost continues to be at lower levels helping the company
maintain its margins in 2QFY2016. We expect the lower raw material cost
environment to prevail amidst pressure on NR and SBR. We expect the operating
margin to be at 15.7% and 15.0% in FY2016E and FY2017E, respectively.
Exhibit 9: Revenue to grow at 12.3% CAGR
Exhibit 10: EBITDA Margin to be at 15.0% in FY2017E
EBITDA (LHS)
EBITDA margin (RHS)
Revenue (LHS)
Revenue growth (RHS)
400
18
2,800
35.0
350
16
2,400
28.7
30.0
15.7
15.
0
14
300
2,000
25.0
12
250
8.9
11.5
1,600
20.0
10
13.2
200
7.2
13.5
8
1,200
10.8
15.0
5.7
150
11.
3
6
800
10.0
100
4
400
5.1
5.0
50
2
0
0.0
0
0
FY2012
FY2013
FY2014
FY2015
FY2016E FY2017E
FY2012
FY2013
FY2014
FY2015
FY2016E FY2017E
Source: Company, Angel Research
Source: Company, Angel Research
The company has significantly lowered its debt in 1HFY2016. We expect the
company to reduce its debt to `107cr in FY2017E, which will lower its interest
expense. Consequently, we expect the company to report a profit of `207cr in
FY2017E.
Outlook and valuation
We expect the top-line of the company to grow at a CAGR of 11.0% over
FY2015-17E to `2,338cr. We expect the operating margin to be at 15.0% in
FY2017E owing to lower rubber prices and improvement in market share in the
aftermarket segment. Consequently, the net profit is expected to be at `207cr in
FY2017E. At the current market price, the stock is trading at a PE of 10.4x its
FY2017E earnings. We have a Buy rating on the stock with a revised target price of
`3,240 based on a target PE of 12.0x for FY2017E earnings.
Exhibit 11: Relative valuation
Mcap
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/
Company
Year
(` cr)
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
Sales (x)
TVSSL
FY2017E
2,146
2,338
15.0
207
270.0
39.6
10.4
3.5
0.9
CEAT
FY2017E
4,107
6,597
13.7
453
111.9
18.5
9.0
1.7
0.7
Apollo tyres
FY2017E
8,081
12,689
16.0
968
19.0
14.1
8.3
1.1
0.8
MRF
SY2016E
16,329
14,488
21.1
1,611
3,797.9
21.2
10.1
1.9
1.0
Source: Company, Angel Research, Bloomberg
November 9, 2015
6
TVS Srichakra | 2QFY2016 Result Update
Exhibit 12: One-year forward PE band
4,000
Price (`)
5x
8x
11x
14
3,500
3,000
2,500
2,000
1,500
1,000
500
-
Source: Company, Angel Research
Key downside risks to our recommendation: Any rise in rubber prices, increase in
inflation, increasing competition, slowdown in 2W and 3W industry and lower-
than-expected demand in the replacement market, will have an adverse impact on
the company’s performance. The import duty on NR has been increased from 20%
or `30/kg to 25% or `30/kg. Further upward revision in the duty will have an
adverse impact on TVSSL’s profitability.
The Company
TVSSL is a part of the TVS Group. The company is a leading manufacturer of
two-wheeler and three-wheeler tyres and enjoys a market share of 25% (FY2011).
The company manufactures a complete range of two-wheeler and three-wheeler
tyres for the domestic market. For the export market, the company manufactures
industrial pneumatic tyres, farm and implements tyres, skid steer tyres,
multipurpose tyres and floatation tyres, among others. TVSSL’s manufacturing units
are located at Madurai, Tamil Nadu and Pantnagar, Uttarakhand rolling out
~250 lakh tyres per year. With a network of over 2,400 dealers and 34 depots
across the country, the company is a major supplier to TVS Motors, Hero
MotoCorp, HMSI, Bajaj Auto, LML, Piaggio, Atul Auto Ltd., Mahindra 2Wheelers
and India Yamaha Motor. The company also exports to the US, Europe, South
America, Africa and Australia.
November 9, 2015
7
TVS Srichakra | 2QFY2016 Result Update
Standalone Profit & Loss Statement
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016E
FY2017E
Total operating income
1,476
1,671
1,896
2,101
2,338
% chg
5.1
13.2
13.5
10.8
11.3
Net Raw Materials
1,011
1,104
1,123
1,097
1,245
% chg
7.1
9.2
1.7
(2.3)
13.4
Other Mfg costs
106
124
146
180
198
% chg
5.1
16.4
18.1
23.0
10.0
Personnel
113
125
164
194
213
% chg
17.4
10.5
31.5
18.0
10.0
Other
161
198
245
301
331
% chg
17.0
23.3
23.3
23.0
10.0
Total Expenditure
1,391
1,551
1,678
1,772
1,987
EBITDA
85
120
218
329
352
% chg
(32.1)
41.1
81.7
51.4
6.7
(% of Net Sales)
5.7
7.2
11.5
15.7
15.0
Depreciation& Amortisation
24
24
40
45
52
EBIT
61
96
178
284
300
% chg
(41.8)
58.5
85.0
60.0
5.4
(% of Net Sales)
4.1
5.8
9.4
13.6
12.9
Interest & other Charges
57
42
30
19
12
Other Income
44
1
4
6
8
(% of Net Sales)
3.0
0.1
0.1
0.2
0.2
Recurring PBT
3
55
148
266
287
% chg
(92.9)
1477.9
171.2
79.7
8.2
Exceptional Item
-
-
(12)
-
-
PBT (reported)
47
56
140
272
295
Tax
12
8
36
82
89
(% of PBT)
24.5
15.2
25.6
30.0
30.0
PAT (reported)
36
47
104
190
207
Extraordinary Expense/(Inc.)
-
-
-
-
-
ADJ. PAT
36
47
104
190
207
% chg
(10.3)
33.0
118.8
83.4
8.6
(% of Net Sales)
2.4
2.9
5.5
9.1
8.9
Basic EPS (`)
46.6
61.9
135.6
248.6
270.0
Fully Diluted EPS (`)
46.6
61.9
135.6
248.6
270.0
% chg
(10.3)
33.0
118.8
83.4
8.6
Dividend
6
12
26
26
31
Retained Earning
30
35
73
160
171
November 9, 2015
8
TVS Srichakra | 2QFY2016 Result Update
Standalone Balance Sheet
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016E
FY2017E
SOURCES OF FUNDS
Equity Share Capital
8
8
8
8
8
Reserves& Surplus
163
196
269
429
600
Shareholders’ Funds
171
204
276
436
607
Total Loans
233
304
205
133
107
Other Long Term Liabilities
29
10
15
30
30
Long Term Provisions
2
3
8
8
8
Deferred Tax Liability
23
22
23
23
23
Total Liabilities
458
541
527
630
774
APPLICATION OF FUNDS
Gross Block
303
370
446
531
611
Less: Acc. Depreciation
117
141
179
224
276
Net Block
185
229
267
307
335
Capital Work-in-Progress
31
20
18
20
20
Goodwill
-
-
-
-
-
Investments
19
19
32
32
32
Long Term Loans and advances
50
53
65
65
65
Other Non-current asset
8
12
7
7
7
Current Assets
525
505
411
515
669
Cash
45
8
9
25
125
Loans & Advances
40
24
25
27
31
Inventory
253
207
210
222
246
Debtors
186
266
167
240
267
Other current assets
-
-
-
-
-
Current liabilities
362
297
274
316
354
Net Current Assets
164
207
137
199
315
Misc. Exp. not written off
-
-
-
-
-
Total Assets
458
541
527
630
774
November 9, 2015
9
TVS Srichakra | 2QFY2016 Result Update
Standalone Cash Flow Statement
Y/E March (` cr)
FY2013 FY2014 FY2015 FY2016E
FY2017E
Profit before tax
47
56
140
272
295
Depreciation
24
24
40
45
52
Change in Working Capital
129
(81)
72
(46)
(16)
Less: Direct taxes paid
(12)
(8)
(37)
(82)
(89)
Others
4
25
27
(6)
(8)
Cash Flow from Operations
192
15
242
183
234
(Inc.)/Dec. in Fixed Assets
(19)
(57)
(74)
(86)
(80)
(Inc.)/Dec. in Investments
1
0
(13)
-
-
Interest received
(21)
(7)
(7)
-
-
Others
81
(7)
(1)
6
8
Cash Flow from Investing
42
(70)
(95)
(80)
(72)
Issue of Equity
-
0
-
-
-
Inc./(Dec.) in loans
(106)
71
(88)
(57)
(27)
Dividend Paid (Incl. Tax)
(7)
(14)
(31)
(30)
(36)
Others
(82)
(38)
(26)
-
-
Cash Flow from Financing
(195)
19
(145)
(87)
(63)
Inc./(Dec.) in Cash
39
(37)
1
16
100
Opening Cash balances
6
45
8
9
25
Closing Cash balances
45
8
9
25
125
November 9, 2015
10
TVS Srichakra | 2QFY2016 Result Update
Standalone Key Ratios
Y/E March
FY2013
FY2014
FY2015E
FY2016E
FY2017E
Valuation Ratio (x)
P/E (on FDEPS)
60.2
45.2
20.7
11.3
10.4
P/CEPS
35.8
30.2
14.9
9.1
8.3
P/BV
12.6
10.5
7.8
4.9
3.5
Dividend yield (%)
0.3
0.6
1.2
1.2
1.4
EV/Net sales
1.6
1.5
1.2
1.1
0.9
EV/EBITDA
27.3
20.2
10.6
6.7
6.0
EV / Total Assets
5.1
4.5
4.4
3.5
2.7
Per Share Data (`)
EPS (Basic)
46.6
61.9
135.6
248.6
270.0
EPS (fully diluted)
46.6
61.9
135.6
248.6
270.0
Cash EPS
78.2
92.9
187.6
307.6
337.8
DPS
7.5
16.0
33.8
33.8
40.0
Book Value
223.2
266.0
360.8
569.9
793.1
DuPont Analysis
EBIT margin
4.1
5.8
9.4
13.6
12.9
Tax retention ratio
0.8
0.8
0.7
0.7
0.7
Asset turnover (x)
4.1
3.4
4.0
3.8
3.9
ROIC (Post-tax)
12.6
16.5
28.3
36.0
35.1
Cost of Debt (Post Tax)
18.5
11.6
10.8
9.8
8.1
Leverage (x)
1.6
1.2
1.0
0.4
0.0
Operating ROE
3.2
22.2
45.3
46.1
36.4
Returns (%)
ROCE (Pre-tax)
13.3
17.7
33.7
45.1
38.7
Angel ROIC (Pre-tax)
16.7
19.5
38.1
51.4
50.2
ROE
20.9
23.3
37.6
43.6
34.0
Turnover ratios (x)
Asset TO (Gross Block)
4.9
4.9
4.6
4.3
4.1
Inventory / Net sales (days)
69
51
40
38
37
Receivables (days)
47
50
42
42
42
Payables (days)
85
77
62
65
65
WC cycle (ex-cash) (days)
29
44
25
30
30
Solvency ratios (x)
Net debt to equity
1.1
1.5
0.7
0.2
0.0
Net debt to EBITDA
2.0
2.3
0.8
0.2
(0.1)
Int. Coverage (EBIT/ Int.)
1.1
2.3
5.9
15.3
24.3
November 9, 2015
11
TVS Srichakra | 2QFY2016 Result Update
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange of India Limited. It is also registered as a Depository Participant with
CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is
a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates including its relatives/analyst do not hold any financial interest/beneficial
ownership of more than 1% in the company covered by Analyst. Angel or its associates/analyst has not received any compensation /
managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months. Angel/analyst
has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market making activity
of the company covered by Analyst.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies 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 report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Note: Please refer to the important ‘Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may
have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement
TVS Srichakra
1. Analyst ownership of the stock
No
2. Angel and its Group companies ownership of the stock
No
3. Angel and its Group companies' Directors ownership of the stock
No
4. Broking relationship with company covered
No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15)
November 9, 2015
12