Result Update
February 8, 2017
Jubilant Life Sciences (JUBLIF)
Rating matrix
Rating
Target
Target Period
Potential Upside
:
:
:
:
Buy
| 810
12-15 months
15%
Margins miss but radiopharma outlook solid…
What’s Changed?
Target
EPS FY17E
EPS FY18E
EPS FY19E
Rating
Changed from | 795 to | 810
Changed from | 43.9 to | 37.4
Changed from | 53.8 to | 53.9
Changed from | 66.3 to | 67.5
Unchanged
Quarterly Performance
Revenue
EBITDA
EBITDA (%)
Adj. Net Profit
Q3FY17
1,491.6
331.8
22.2
119.4
Q3FY16
1,400.6
305.8
21.8
121.8
YoY (%) Q2FY17 QoQ (%)
6.5 1,419.3
5.1
8.5
340.3
-2.5
41 bps
24.0 -173 bps
-2.0
144.6
-17.4
FY16
5802.3
1277.8
431.5
27.1
26.0
FY17E
5941.1
1419.7
596.5
37.4
37.4
FY18E
6678.2
1619.4
858.9
53.9
53.9
FY19E
7520.3
1869.5
1075.6
67.5
67.5
FY16
26.0
29.9
12.0
3.9
14.2
12.0
FY17E
18.8
21.6
10.3
3.3
17.3
14.2
FY18E
13.1
15.0
8.6
2.6
20.2
16.2
FY19E
10.4
12.0
6.9
2.1
20.4
18.3
Key Financials
(| crore)
Revenues
EBITDA
Net Profit
EPS (|)
Adjusted EPS (|)
Valuation summary
PE (x)
Target P/E (Diluted)
EV/EBITDA (x)
Price to book (x)
RoNW (%)
RoCE (%)
Stock data
Amount
| 11222 crore
| 4114 crore
| 649 crore
| 14686 crore
| 765/| 279
| 15.9 crore
|1
Particular
Market Capitalisation
Debt (FY16)
Cash (FY16)
EV
52 week H/L (|)
Equity capital
Face value
Price performance (%)
Jubilant Life Sciences
Divi's Labs
Aurobindo Pharma
1M
6.1
2.4
2.0
3M
20.1
-39.8
-3.0
| 704
6M
126.5
-36.2
-8.2
1Y
115.3
-32.0
-7.4
Research Analyst
Siddhant Khandekar
[email protected]
Mitesh Shah
[email protected]
ICICI Securities Ltd | Retail Equity Research
• Revenues increased 7% YoY to | 1492 crore (I-direct estimate:
| 1534 crore). Pharmaceutical segment grew 15% YoY to | 829 crore
(I-direct estimate: | 873 crore) while life science ingredients (LSI)
declined 3% YoY to | 663 crore (I-direct estimate: | 640 crore)
• EBITDA margins increased 40 bps YoY to 22.2%. However, margins
were below I-direct estimate of 25.5%, mainly due to lower-thanexpected EBITDA margins in the LSI segment. EBITDA increased 8%
YoY to | 332 crore (I-direct estimates: | 390 crore)
• Adjusted net profit declined 3% to | 118 crore (I-direct estimate:
| 181 crore) due to lower operational performance, one-off financial
cost and higher tax rate
Pharmaceuticals business segment getting back to normal
The pharmaceuticals business has grown at 7% CAGR in FY12-16 driven
by generics and specialty pharma. The margin scenario is returning to
normal on the back of generic launches in the US, launches in specialty
pharma and successful resolution of two CMO facilities. Recent long term
contract in the radiopharma business as well as approval for Rubyfill in
the US will strengthen the speciality sub-segment growth, which is likely
to grow at 20% CAGR in FY16-19E to | 2559 crore on the back of strong
growth in radiopharma business followed by CMO. However, steep price
erosion in the US is likely to impact near term generic segment growth.
Overall, we expect pharma segment to grow at 15% CAGR in FY16-19E to
| 4593 crore. We also expect margin expansion in the pharma space from
29.1% in FY16 to 32% by FY19E due to an improved product mix.
LSI segment mostly commoditised but offers stable returns
Life science ingredients (LSI) cater to more routine customers with
committed requirements. Due to the commodity nature, margins in this
segment are around 14-17%. The business has grown at 6% CAGR in
FY12-16. Of late, the company has adopted a calibrated approach. Hence,
the focus will shift to profitable products and defocus on less
lucrative/loss making sub-segments. We expect LSI to grow mere 1%
CAGR in FY16-19E to | 2820 crore. However, EBITDA margins are likely to
remain healthy at ~16%.
Debt no more a fear factor
In its pursuit to build capacity and create multiple revenue heads, the debt
situation had complicated over the years. With an improvement in
operational performance, the free cash flow (FCF) situation has improved
markedly. As the capex cycle moderates in the medium term, the
company expects to utilise maximum FCF for debt repayment. We expect
the company’s net D/E ratio to further go down to 0.3x by FY19E from
1.4x in FY16 and debt/EBITDA ratio to 1.5x from 3.5x in FY16.
Margin accretive businesses on faster track; maintain BUY
Despite the miss in EBITDA margins in Q3, we continue to expect margin
expansion through FY19 on the back of the tilt of product mix towards
margin accretive businesses, especially radiopharma and CMO. For
radiopharma, we expect contribution to the overall revenues to improve
from 12% in FY16 to 19% in FY19E. As far as LSI is concerned, we expect
product rationalisation exercise to persist. With improved visibility led by
an improvement in product approvals and a better segment mix we
expect continuous improvement in free cash flow generation. We have
ascribed a target price of | 810 based on 12x FY19E EPS of | 68.2.
Variance analysis
Q3FY17
1,491.6
Q3FY17E
1,533.5
Q3FY16
1,400.6
Q2FY17
1,419.3
Raw Material Expenses
523.0
490.7
515.6
489.2
1.4
6.9
Employee Expenses
Other Expenditure
309.2
244.9
322.0
225.4
281.7
210.9
301.4
211.2
9.7
16.1
2.6
15.9
82.8
1,159.8
331.8
22.2
104.9
1,143.1
390.4
25.5
86.6
1,094.8
305.8
21.8
77.2
1,079.0
340.3
24.0
98.2
72.7
5.1
-0.4
166.5
48.0
28.8
118.5
-1.3
80.0
72.0
3.0
0.0
241.4
60.4
25.0
181.1
0.0
88.6
74.7
2.9
0.2
145.2
23.6
16.2
121.6
0.0
80.0
72.0
4.9
-0.2
193.4
49.7
25.7
143.7
-1.1
Revenue
Power cost
Total Expenditure
EBITDA
EBITDA (%)
Interest
Depreciation
Other income
Exceptional Items
PBT after Exceptional Items
Tax
Tax Rate (%)
PAT before MI
MI
YoY (%) QoQ (%)
6.5
5.1
-4.4
7.2
5.9
7.5
8.5
-2.5
41 bps -173 bps
10.8
-2.7
79.6
PL
14.7
103.5
22.8
0.9
4.1
NA
-13.9
-3.5
-2.6
0.0
-17.5
NA
Adj. Net Profit
Key Metrics
Pharmaceuticals
119.4
181.1
121.8
144.6
-2.0
-17.4
829.0
873.4
718.4
807.0
15.4
2.7
Life Science Ingredients
663.0
640.0
683.0
613.0
-2.9
8.2
Comments
YoY growth mainly due to 15% growth in pharmaceutical business to | 829
crore, which was partly offset by 3% decline in LSI segment
YoY improvement of 175 bps in gross margins to 64.9% mainly due to better
product mix
Pharma business margins improved 140 bps YoY to 31.5% while LSI business
margins improved 70 bps to 14.9%. Miss vis-à-vis I-direct estimates was
mainly due to lower-than-expected LSI business margins
Included | 27 crore of one-off debt replacement cost
Lower growth vis-à-vis EBITDA mainly due to one-off financial cost and higher
tax rate. Miss vis-à-vis I-direct estimates was mainly due to lower than
expected operational performance, one-off financial cost and higher tax rate
YoY growth was mainly due to 26% growth in specialty segment (56% of
pharmaceutical sales), which was partly offset by mere 3% growth in generics
segment. Miss vis-à-vis I-direct estimate was mainly due to higher-thanexpected price erosion in the US
17% YoY decline in international business was largely offset by 10% growth in
domestic business
Source: Company, ICICIdirect.com Research
Change in estimates
(| Crore)
Revenue
Old
6,026.3
FY17E
New % Change
5,941.1
-1.4
Old
6,774.4
FY18E
New % Change
6,678.2
-1.4
EBITDA
EBITDA Margin (%)
1,530.7
25.4
1,419.7
23.9
-7.3
-150 bps
1,726.7
25.5
1,619.4
24.2
-6.2
-125 bps
688.4
43.2
596.5
37.4
-13.3
-13.3
857.3
53.8
858.9
53.9
0.2
0.2
PAT
EPS (|)
Changed mainly due to higher-than-expected price erosion in the US and lower LSI
margin estimates
In FY17, delta vis-a-vis EBITDA due to one-off financial charges in Q3FY17. In FY18
delta vis-à-vis EBITDA mainly due to reduction in Interest expenses
Source: Company, ICICIdirect.com Research
Assumptions
Pharmaceuticals
Life Science Ingredients
FY15
2,682.0
3,144.2
FY16
3,054.8
2,747.5
Current
FY17E
FY18E
3,370.3 3,897.4
2,557.7 2,685.5
Earlier
FY17E
FY18E
3,516.6 4,057.3
2,471.4 2,597.5
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Page 2
Company Analysis
Incorporated in 1978, Jubilant Life Sciences (JLS; formerly Jubilant
Organosys), is a mid-sized integrated chemicals turned pharmaceuticals
player. It started as a full fledged chemical company by entering the vinyl
acetate monomer (VAM) business in 1983. Broadly, the company
operates through two business segments - pharmaceuticals (46% of the
turnover) and life science ingredients (54% of turnover). The
pharmaceuticals segment consists of sub segments like 1) Generics- APIs
and formulations, 2) specialty pharma - radio pharma, allergy therapy
products and contract manufacturing (CMO) of sterile injectables, 3) drug
discovery and development solutions. EBITDA margins in the
pharmaceuticals segment are normally much higher due to the presence
of formulations and specialty pharma. The LSI segment consists of sub
segments such as 1) advanced intermediates and specialty ingredients, 2)
nutrition products and 3) life science chemicals. This segment caters to
more routine customers with committed requirements. Because of the
commodity nature, margins in this segment are relatively low.
Overall, we expect revenues to grow at a CAGR of 9% in FY16-19E to
| 7520 crore. The main drivers will by specialty pharma, CMO and
nutrition products.
Exhibit 1: Revenues to grow at CAGR of 9% in FY16-19E
8000
6.2% CAGR
(| crore)
6000
5163.7
5803.4
5826.3
FY14
FY15
5802.3
9.0% CAGR
6678.2
5941.1
7520.3
FY17E
FY19E
4303.1
4000
2000
0
FY12
FY13
FY16
FY18E
Revenues
Source: Company, ICICIdirect.com Research
Pharmaceuticals business has grown at a CAGR of 6% in FY12-16 driven
by generics and specialty pharma. Pricing pressure in the drug discovery
business and some formulations in the US have put consistent pressure
on the EBITDA margins of the pharma business. Also, expenses at the
US-based Spoken facility to address the USFDA warning letter and the
subsequent postponement of shipment have led to a further deterioration
in financials. However, the margin scenario is returning to normal on the
back of generic launches in US, launches in specialty pharma and
successful resolution of two CMO facilities. We expect the pharma
segment to grow at a CAGR of 15% to | 4793 crore in FY16-19E mainly on
account of robust growth in the speciality segments.
ICICI Securities Ltd | Retail Equity Research
Page 3
Exhibit 2: Pharma segment to grow at CAGR of 15% in FY16-19E
5000
Pharma segment revenue analysis (FY16)
Specialty
Pharma
43%
Formulations
23%
4000
(| crore)
Drug
Discovery APIs
CMO
3%
16%
15%
14.6% CAGR
3897.4
7% CAGR
2957.6
3000
2727.8
2682.0
FY14
FY15
3054.8
4593.2
3370.3
2175.1
2000
1000
0
Source: Company, ICICIdirect.com Research
FY12
FY13
FY16
FY16
FY18E
FY19E
Pharmaceuticals
Source: Company, ICICIdirect.com Research
Jubilant Life sciences (Jubilant) through one of its units Jubilant
DraxImage Inc. Montreal Canada, has received USFDA 505 (b) (2)
approval (new drug application) of Rubyfill (Rubidium 82 generator and
elution system). Rubyfill is used for nuclear cardiology diagnostic PET
(positron emission tomography) procedure to evaluate regional
myocardial perfusion in adult patients with suspected or existing coronary
artery disease. The product is expected to be launched in Q3FY17. As per
management estimates, the current US market size is US$76 million and
has the potential to grow to US$250 million annually in the next five
years. Currently, Italy based Bracco Diagnostics is selling Rubidium 82 in
the US under Cardiogen-82 brand.
Radiopharma segment (23% of pharma business) grew 44% in FY12-16 to
| 713 crore. Jubilant is the only listed Indian company, which has strong
exposure in the niche radiopharma segment. We believe Rubyfill 505 (b)
(2) approval would be a key milestone for the company in the US. In the
US, we expect the product to contribute US$7-10 million of revenues in
FY18, which is likely to grow to US$25-35 million over the next five years.
Apart from the US, the company has received approvals in Germany,
Switzerland and Canada. Jubilant has also recently signed long term
contracts with distribution networks in the US to supply all approved
radiopharma products over 39 months. The company has seven
approved products in the US and two pending approvals. We expect this
segment to grow at 25% CAGR in FY16-19E to | 1386 crore.
ICICI Securities Ltd | Retail Equity Research
Page 4
Exhibit 3: Radiopharma segment to grow at CAGR of 25%
1600.0
1400.0
1200.0
20%
1000.0
800.0
400.0
200.0
712.9
17%
508.9
600.0
23%
24%
819.8
35%
1385.5
30% 30%
27%
1065.8
25%
20%
15%
524.6
10%
238.09%
165.98%
5%
0%
0.0
FY12
FY13
FY14
FY15
Radiopharma
FY16
FY17E
FY18E
FY19E
Radiopharma as a % of total Pharma
Source: Company, ICICIdirect.com Research
Life science ingredients (LSI) cater to more routine customers with
committed requirements. Because of the commodity nature, margins in
this segment are around 15-16%. The business has grown at a CAGR of
7.7% in FY11-16. Of late, the company has adopted a calibrated
approach. Hence, the focus will shift to profitable products and defocus
on less lucrative/loss making sub-segments. We expect LSI to grow at a
CAGR of 1% in FY16-19E to | 2820 crore.
LSI segment revenue analysis (FY16)
Exhibit 4: LSI segment to grow at CAGR of 1%
4000
3076.0
3000
(| crore)
Speciality
intermediates
25%
Life Science
Chemicals
Nutritionals
64%
11%
3144.2
2747.5
2503.0
2557.7
2685.5
FY16
FY18E
2819.8
2103.0
2000
1000
Source: Company, ICICIdirect.com Research
0
FY12
FY13
FY14
FY15
FY16
FY19E
Life Science Ingredients
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Page 5
Exhibit 5: EBITDA to see improvement
2000
1500
(| crore)
30
1869.5
20.3
873.5
1000
22.0
1277.8
20.0
1030.5
1007.6
17.4
1619.4
24.2
23.9
1419.7
24.9 25
20
15
689.311.8
10
500
5
0
0
FY12
FY13
FY14
FY15
FY16
EBITDA
FY17E
FY18E
FY19E
EBITDA Margins (%)
Source: Company, ICICIdirect.com Research
(| crore)
Exhibit 6: Improvement in operating margins to improve net profit
1200
1100
1000
900
800
700
600
500
400
300
200
100
0
-100
-200
1075.6
35.6% CAGR
858.9
96.9% CAGR
596.5
152.7
109.0
FY13
FY14
14.6
FY12
431.5
FY15
-57.8
FY16
FY17E
FY18E
FY19E
Net Profit
Source: Company, ICICIdirect.com Research
Exhibit 7: Trends in return ratios
28
24
20
16
(%)
12
8
17.3
15.6
10.2
14.2
15.1
11.5
12.3
9.7
14.2
18.3
20.4
16.2
5.8
4
0
-4
12.0
20.2
FY12
FY13
FY14
-8
-0.4
FY15
FY16
RoCE (%)
FY17E
FY18E
FY19E
RONW (%)
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Page 6
Exhibit 8: Trends in quarterly financials
(| crore)
Q3FY14
Net Sales
1209.6
Other Operating Income
12.6
Total Operating Income
1222.2
Raw Material Expenses
456.1
% of revenues
37.3
Gross Profit
766.1
Gross Margins (%)
62.7
Power cost
85.5
% to revenues
7.0
Employee Expenses
244.0
% to revenues
20.0
Selling & Admin expenses 161.2
% to revenues
13.2
Total Expenditure
946.9
% to revenues
77.5
EBITDA
275.4
EBITDA Margins (%)
22.5
Depreciation
62.0
Interest
70.1
Other Income
3.5
PBT before EO
146.7
Less: Exceptional Items
47.1
PBT after EO
193.8
Total Tax
35.3
Tax Rate (%)
18.2
PAT
158.5
Minority Interest
6.5
Net Profit
152.0
EPS (|)
9.5
Q4FY14
1551.6
10.7
1562.3
694.9
44.5
867.4
55.5
96.4
6.2
283.7
18.2
241.5
15.5
1316.5
84.3
245.8
15.7
68.7
75.0
5.0
107.2
36.4
143.6
25.1
17.5
118.5
9.6
109.0
6.8
Q1FY15
1460.5
12.6
1473.1
719.2
48.8
753.9
51.2
98.9
6.7
272.2
18.5
237.2
16.1
1327.6
90.1
145.5
9.9
73.1
77.9
4.2
-1.3
-18.7
-20.0
25.1
-125.6
-45.0
4.6
-49.6
-3.1
Q2FY15
1362.1
9.0
1371.1
606.3
44.2
764.8
55.8
100.1
7.3
271.2
19.8
282.6
20.6
1260.1
91.9
111.0
8.1
69.2
96.0
26.4
-27.8
4.6
-23.1
25.1
-108.4
-48.2
6.5
-54.6
-3.4
Q3FY15
1430.3
15.2
1445.5
622.5
43.1
823.0
56.9
98.9
6.8
271.7
18.8
267.0
18.5
1260.2
87.2
185.3
12.8
79.5
96.1
6.1
15.8
-0.2
15.6
25.1
160.6
-9.5
6.5
-16.0
-1.0
Q4FY15
1523.3
13.3
1536.5
713.7
46.4
822.9
53.6
95.2
6.2
275.1
17.9
205.2
13.4
1289.1
83.9
247.4
16.1
66.2
85.4
5.8
101.7
-33.9
67.8
25.1
37.0
42.7
0.0
42.7
2.7
Q1FY16
1438.4
20.2
1458.6
537.0
36.8
921.6
63.2
102.1
7.0
272.7
18.7
208.8
14.3
1120.6
76.8
337.9
23.2
70.2
91.2
3.8
180.4
0.4
180.7
25.1
13.9
155.7
-1.6
157.3
9.9
Q2FY16
1444.7
18.3
1463.1
530.3
36.2
932.7
63.8
99.3
6.8
285.1
19.5
227.7
15.6
1142.5
78.1
320.6
21.9
75.1
97.4
4.5
152.5
2.3
154.8
25.1
16.2
129.8
0.0
129.8
8.1
Q3FY16
1337.0
42.4
1379.5
515.6
37.4
863.9
62.6
86.6
6.3
281.7
20.4
210.9
15.3
1094.8
79.4
284.7
20.6
74.7
88.6
2.9
124.2
-0.2
124.1
25.1
20.2
99.0
0.0
99.0
6.2
Q4FY16
1503.0
21.0
1524.0
568.5
37.3
955.5
62.7
78.7
5.2
288.4
18.9
260.5
17.1
1196.1
78.5
327.9
21.5
126.0
88.1
2.5
116.2
9.1
125.3
25.1
20.0
100.3
-0.4
100.7
6.3
Q1FY17
1420.0
18.6
1438.6
464.1
32.3
974.4
67.7
80.6
5.6
295.9
20.6
210.7
14.6
1051.4
73.1
387.2
26.9
71.5
82.8
4.3
237.2
0.1
237.3
25.1
10.6
212.2
2.4
209.8
13.2
Q2FY17
1420.0
25.8
1445.8
489.2
33.8
956.7
66.2
77.2
5.3
301.4
20.8
211.2
14.6
1079.0
74.6
366.8
25.4
72.0
80.0
4.9
219.7
0.2
219.9
25.1
11.4
194.8
-1.1
195.9
12.3
Q3FY17
1472.2
19.4
1491.6
523.0
35.1
968.6
64.9
82.8
5.6
309.2
20.7
244.9
16.4
1159.8
77.8
331.8
22.2
72.7
98.2
5.1
166.1
0.4
166.5
25.1
15.1
141.4
-1.3
142.7
9.0
YoY (%)
10.1
-54.2
8.1
1.4
-231 bps
12.1
231 bps
-4.4
-73 bps
9.7
30 bps
16.1
113 bps
5.9
-161 bps
16.6
161 bps
-2.7
10.8
79.6
33.7
34.2
0.0
-514.7
42.8
NA
44.2
Source: Company, ICICIdirect.com Research
SWOT Analysis
Strengths - Vertically integrated model. Proven capabilities in the CRAMS
space
Weakness - Too many revenue heads, struggling to cope up with margin
pressure and above all a huge debt burden. Commoditised nature of the
LSI segment
Opportunities - The US generics space. Incremental CRAMS orders
Threats - Leverage ratios are at alarming levels. Increased USFDA scrutiny
across the globe regarding cGMP issues, pricing pressure due to client
consolidation in the US, pricing probe by the Department of Justice (DoJ)
in the US, proposed tightening by the new regime by adapting to the
bidding process and imposition of border adjustment tax on imported
drugs in the US. The LSI business is witnessing headwinds in China
Conference call highlights
•
•
•
ICICI Securities Ltd | Retail Equity Research
The company has filed 85 ANDAs in the US till date of which 27
are pending approvals. The company plans to file eight ANDAs in
FY17 including niche and 505(b)(2) filings in Radiopharma
business
Rubyfill is on track for a US launch in Q4FY17
Cumulatively filed 894 filings across geographies (812: oral
dosage and 82: sterile products including JDI), of which 696
filings have been approved (622: oral dosage and 74: sterile
products) and rest are pending
Page 7
•
•
•
•
•
•
•
•
•
•
It has filed nine products in the US radiopharmaceuticals market,
out of which seven have been approved
The company has signed long term contracts in
radiopharmaceuticals business with distribution networks in the
US to supply products over a period of 39 months effective from
January 2017
The USFDA has successfully completed inspection at CMO
Montreal and Radiopharmaceuticals facilities
On the lifesciences segment front, the company has initiated price
increase of up to 15% for Beta Picoline, 3-Cyanopyridine and
Vitamin B3
The company successfully issued secured rated listed
redeemable NCDs of | 495 crore for cash at par on a private
placement basis. The net proceeds of the NCDs shall be mainly
used for refinancing of existing debt
The company has been working on MIBG 505(b) (2) for the past
18 months. It is currently in Phase II trial in the US. The USFDA
granted orphan drugs status to this drug
The company has seven NDAs in the pipeline at various stages, of
which two are under review by USFDA
R&D spend in Q3FY17 was | 67 crore (8.5% of pharmaceutical
segment). R&D charged to P&L was | 36 crore. It expects to
maintain current run rate of R&D spending (8% of sales), going
forward
The 9MFY17 capex for the company was at | 206 crore and has
guided for overall capex of | 300 crore in FY17
In the LSI segment, the company has initiated retrofitting and
capacity expansion for certain products. It plans to introduce new
products in the specialty intermediates business in FY18
Exhibit 9: Product pipeline as of Q3FY17
Region
US
Canada
Europe
ROW
Total
Filings
73
22
99
618
789
Oral Solids
Approved
49
19
96
458
596
Pending
24
3
3
160
193
Filings
12
14
12
44
82
Sterile Products
Approved
9
14
11
40
73
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Page 8
Pending
3
0
1
4
9
Valuation
Despite the miss in EBITDA margins in Q3, we continue to expect margin
expansion through FY19 on the back of a tilt of the product mix towards
margin accretive businesses, especially radiopharma and CMO. For
radiopharma, we expect contribution to the overall revenues to improve
from 12% in FY16 to 19% in FY19E. As far as LSI is concerned, we expect
product rationalisation exercise to persist. With improved visibility led by
an improvement in product approvals and better segment mix we expect
a continuous improvement in free cash flow generation. We have
ascribed a target price of | 810 based on 12x FY19E EPS of | 68.2.
900
800
700
600
500
Price
14.2x
9.5x
6.7x
Feb-17
Aug-16
Feb-16
Aug-15
Feb-15
Aug-14
Feb-14
Aug-13
Feb-13
Feb-12
12.3x
Aug-12
Aug-11
Feb-11
Feb-10
Aug-10
Aug-09
Feb-09
Aug-08
Feb-08
Aug-07
400
300
200
100
0
Feb-07
(|)
Exhibit 10: One year forward PE
2.0x
Source: Company, ICICIdirect.com Research
Exhibit 11: One year forward PE of company vs. CNX Pharma
45
49% Discount
40
35
(x)
30
25
20
15
10
5
Jubilant
Feb-17
Aug-16
Feb-16
Aug-15
Feb-15
Aug-14
Feb-14
Aug-13
Feb-13
Aug-12
Feb-12
Aug-11
Feb-11
Feb-10
Aug-10
Aug-09
Feb-09
Aug-08
Feb-08
Feb-07
Aug-07
0
CNX Pharma
[
Source: Company, ICICIdirect.com Research
Exhibit 12: Valuation
FY16
FY17E
FY18E
FY19E
Revenues
(| crore)
5802
5941
6678
7520
Growth
(%)
-0.4
2.4
12.4
12.6
Adj. EPS
(|)
26.0
37.4
53.9
67.5
Growth
(%)
LP
38.2
44.0
25.2
P/E EV/EBITDA
(x)
(X)
26.0
12.0
18.8
10.3
13.1
8.6
10.4
6.9
RoNW
(%)
14.2
17.3
20.2
20.4
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Page 9
RoCE
(%)
12.0
14.2
16.2
18.3
Recommendation history vs. Consensus
900
80.0
800
70.0
700
60.0
50.0
500
40.0
400
(%)
(|)
600
30.0
300
200
20.0
100
10.0
0
0.0
Oct-14
Dec-14
Mar-15
Price
May-15
Jul-15
Oct-15
Idirect target
Dec-15
Mar-16
Consensus Target Mean
May-16
Aug-16
Oct-16
% Consensus with BUY
Source: Reuters, ICICIdirect.com Research
Key events
Date
May-11
Event
Repays FCCB debt worth US$202 million including yield to maturity of US$60 million
Feb-13
Receives warning letter from USFDA for its Montreal facility
Jul-13
China imposes anti dumping duty margin of 24.6% to 57.4% for Pyridine imported from India
Dec-13
USFDA issues warning letter for Spokane facility
Feb-14
Jubilant receives establishment inspection report from USFDA for its Montreal facility
Mar-14
Sells hospitals business to Narayana Health for | 45 crore
May-14
IFC grants loan of US$200 million to company’s wholly-owned subsidiary Jubilant Pharma
Jun-15
US based Spokane facility (CMO) receives USFDA clearance
Oct-16
Receives USFDA 505 (b)(2) approval (new drug application) of Rubyfill Rubidium 82 Generator and Elution System
Jan-17
Signs long term contracts with distribution networks in the US for supply of approved radiopharma products over a period of 39 months
Source: Company, ICICIdirect.com Research
Top 10 Shareholders
Rank
1
2
3
4
5
6
7
8
9
10
Name
Jubilant Stock Holding Pvt. Ltd.
Jubilant Capital Pvt. Ltd.
Jubilant Securities Pvt. Ltd.
East Bridge Capital Management L.P.
Vam Holdings, Ltd.
Samena Capital Management LLP
Motilal Oswal Asset Management Company Ltd.
Jubilant Employees Welfare Trust
Nikita Resources Pvt. Ltd.
Citigroup Inc
Shareholding Pattern
Latest Filing date
30-Sep-16
30-Sep-16
30-Sep-16
30-Sep-16
30-Sep-16
30-Sep-16
31-Dec-16
15-Dec-16
30-Sep-16
30-Sep-16
% O/S Position (m) Change (m)
18.6
29.7m
0.0m
13.2
21.0m
0.0m
11.7
18.7m
0.0m
4.6
7.4m
1.1m
3.6
5.7m
0.0m
3.0
4.8m
0.0m
2.9
4.7m
0.0m
2.3
3.6m
-0.2m
2.2
3.5m
0.0m
2.0
3.1m
0.0m
(in %)
Promoter
Others
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
54.0
54.0
54.0
54.0
54.0
46.0
46.0
46.0
46.0
46.0
Source: Reuters, ICICIdirect.com Research
Recent Activity
Buys
Investor name
East Bridge Capital Management L.P.
Sankaraiah (R.)
Bang (Shyamsundar)
J.P. Morgan Asset Management (Hong Kong) Ltd.
Agarwal (Ashutosh)
Value ($)
10.2m
0.8m
0.4m
0.4m
0.2m
Shares
1.1m
0.1m
0.1m
0.0m
0.0m
Sells
Investor name
RAM Active Investments S.A.
Norges Bank Investment Management (NBIM)
Jubilant Employees Welfare Trust
Acadian Asset Management LLC
Dimensional Fund Advisors, L.P.
Value ($)
-2.5m
-3.3m
-1.5m
-0.6m
-0.7m
Shares
-0.5m
-0.4m
-0.2m
-0.1m
-0.1m
Source: Reuters, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Page 10
Financial summary
Profit and loss statement
| Crore
(Year-end March)
FY16
Revenues
5,802.3
Growth (%)
-0.4
Raw Material Expenses
2,126.3
Employee Expenses
1,126.7
Selling & Admin expenses
904.8
Power cost
366.7
Total Operating Expenditure
4,524.5
EBITDA
1,277.8
Growth (%)
85.4
Depreciation
346.0
Interest
378.6
Other Income
13.6
PBT before EO
566.9
Less: Exceptional Items
-17.5
Total Tax
152.9
Minority Interest
0.0
PAT
431.5
Growth (%)
LP
EPS
27.1
Adjusted PAT
414.0
EPS (Adjusted)
26.0
Source: Company, ICICIdirect.com Research
FY17E
5,941.1
2.4
2,041.0
1,244.7
898.4
337.3
4,521.4
1,419.7
11.1
288.9
329.8
19.9
820.8
-0.6
224.9
0.0
596.5
38.2
37.4
595.9
37.4
FY18E
6,678.2
12.4
2,313.5
1,402.4
942.1
400.7
5,058.8
1,619.4
14.1
297.6
204.8
13.2
1,130.2
0.0
271.2
0.0
858.9
44.0
53.9
858.9
53.9
FY17E
15.9
3,434.3
3,450.2
4,114.0
360.7
0.0
163.2
8,088.0
5,559.4
2,351.0
3,208.4
45.1
3,253.5
2,442.5
36.1
1,254.0
834.2
408.4
649.5
63.5
3,209.5
714.4
209.4
339.4
1,263.2
1,946.3
0.0
409.5
8,088.0
FY18E
15.9
4,237.3
4,253.2
3,414.0
401.4
0.0
175.2
8,243.8
5,659.4
2,547.7
3,111.7
45.1
3,156.8
2,441.7
36.1
1,398.8
930.4
408.4
766.4
63.5
3,567.4
796.8
209.4
443.4
1,449.6
2,117.7
0.0
491.4
8,243.8
Balance sheet
(Year-end March)
Equity Capital
Reserve and Surplus
Total Shareholders funds
Total Debt
Deferred Tax Liability
Minority Interest
Other Non CL & LT Provisions
Total Liabilities
Gross Block - Fixed Assets
Accumulated Depreciation
Net Block
Capital WIP
Total Fixed Assets
Total Intangible Assets
Investments
Inventory
Debtors
Loans and Advances
Cash
Other current Assets
Total Current Assets
Creditors
Provisions
Other Current Liabilities
Total Current Liabilities
Net Current Assets
Deferred Tax Assets
LT L & A, Other Non CA
Application of Funds
FY19E
7,520.3
12.6
2,556.9
1,616.9
1,063.4
413.6
5,650.8
1,869.5
15.4
306.3
162.8
14.8
1,415.2
0.0
339.6
0.0
1,075.6
25.2
67.5
1,075.6
67.5
| Crore
FY16
15.9
2,893.6
2,909.6
4,514.0
326.9
0.0
152.1
7,902.6
5,259.4
2,157.8
3,101.7
145.1
3,246.7
2,438.2
36.1
1,216.1
929.7
362.6
344.5
48.5
2,901.3
599.6
209.4
235.4
1,044.5
1,856.9
0.0
324.6
7,902.6
Source: Company, ICICIdirect.com Research
FY19E
15.9
5,256.9
5,272.8
2,714.0
452.3
0.0
188.2
8,627.4
5,759.4
2,747.9
3,011.5
45.1
3,056.6
2,435.6
36.1
1,575.1
1,047.7
408.4
1,068.7
63.5
4,163.5
897.3
209.4
547.4
1,654.1
2,509.4
0.0
589.7
8,627.4
Cash flow statement
(Year-end March)
Profit/(Loss) after taxation
Add: Depreciation
(Inc)/dec in Current Assets
Inc/(dec) in CL and Provisions
CF from operating activities
(Purchase)/Sale of FA
Deferred Tax Liability
Minority Interest
Investments
Other Investing Activities
CF from investing activities
Inc/(Dec) in Equity Capital
Proceeds/(Repayment) of/from Lo
Dividend & Dividend tax
Others
CF from financing activities
| Crore
FY16
431.5
346.0
-223.3
2.5
556.7
-496.7
88.9
0.0
3.4
-96.8
-501.3
0.0
397.8
-57.5
(97.2)
243.1
FY17E
596.5
288.9
-3.2
218.7
1,101.0
-300.0
33.7
0.0
0.0
-60.7
-327.0
0.0
-277.8
-55.9
54.2
-279.6
FY18E
858.9
297.6
-241.0
186.4
1,102.0
-200.0
40.7
0.0
0.0
-180.7
-340.0
0.0
-400.0
-55.9
0.0
-455.9
FY19E
1,075.6
306.3
-293.7
204.5
1,292.6
-200.0
50.9
0.0
0.0
-80.1
-229.2
0.0
-700.0
-55.9
0.0
-755.9
Net Cash flow
298.5
Opening Cash
394.3
Closing Cash
692.8
Free Cash Flow
60.0
Source: Company, ICICIdirect.com Research
494.4
344.5
838.9
801.0
306.0
649.5
955.5
902.0
307.5
766.4
1,073.9
1,092.6
FY16
FY17E
FY18E
FY19E
27.1
26.0
182.6
3.6
21.6
37.4
37.4
216.6
3.5
40.8
53.9
53.9
267.0
3.5
48.1
67.5
67.5
331.0
3.5
67.1
63.4
22.0
7.1
76.5
58.5
37.7
0.7
43.6
65.6
23.9
10.0
77.0
51.2
43.9
0.7
77.5
65.4
24.2
12.9
76.4
50.9
43.6
0.8
68.0
66.0
24.9
14.3
76.4
50.9
43.6
0.9
69.1
14.2
12.0
12.3
17.3
14.2
15.2
20.2
16.2
17.7
20.4
18.3
20.7
26.0
12.1
2.7
1.9
3.9
18.8
10.4
2.5
1.9
3.3
13.1
8.6
2.1
1.7
2.6
10.4
6.9
1.7
1.5
2.1
1.6
3.5
2.4
1.2
2.9
2.0
0.8
2.1
1.9
0.5
1.5
1.9
Key ratios
(Year-end March)
Per share data (|)
Reported EPS
Adjusted EPS
BV per share
Dividend per share
Cash Per Share
Operating Ratios (%)
Gross Profit Margins
EBITDA Margins
PAT Margins
Inventory days
Debtor days
Creditor days
Asset Turnover
EBITDA conversion Rate
Return Ratios (%)
RoE
RoCE
RoIC
Valuation Ratios (x)
P/E
EV / EBITDA
EV / Net Sales
Market Cap / Sales
Price to Book Value
Solvency Ratios
Debt / Equity
Debt / EBITDA
Current Ratio
Source: Company, ICICIdirect.com Research
.
ICICI Securities Ltd | Retail Equity Research
Page 11
ICICIdirect.com coverage universe (Healthcare)
Ajanta Pharma
AJAPHA 1744 1,960 Buy
15351.2
45.4
59.7
66.3
75.3
38.4
29.2
26.3
23.2
42.9
39.2
34.9
31.7
34.2
33.1
28.4
25.6
Apollo Hospitals
APOHOS 1257 1,440 Buy
17486.7
22.2
21.8
31.4
45.3
56.6
57.6
40.0
27.8
8.2
8.1
10.3
13.3
8.9
8.2
10.7
13.6
Alembic Pharma
TP Rating
(|)
700 1,100 Buy
ALEMPHA 556
615
Hold
M Cap
(| Cr)
PE(x)
RoCE (%)
RoE (%)
FY17E FY18E FY19E FY16 FY17E FY18E FY19E FY16 FY17E FY18E FY19E
I-Direct
Code
Aurobindo Pharma AURPHA
CMP
(|)
EPS (|)
FY16 FY17E FY18E FY19E FY16
Company
40964.8
33.9
41.0
48.1
54.9
20.6
17.1
14.6
12.7
23.3
24.3
24.1
24.0
28.1
25.8
23.5
21.5
10489.1
38.2
22.0
24.5
30.6
14.6
25.3
22.7
18.2
51.5
26.0
23.1
24.8
44.9
21.9
20.8
21.9
Biocon
BIOCON
1099 1,120 Buy
21970.0
23.1
32.6
34.4
44.2
47.5
33.6
31.9
24.8
9.1
13.0
13.7
16.5
11.4
14.4
13.7
15.4
Cadila Healthcare
Cipla
CADHEA
CIPLA
367
597
380
575
Hold
Hold
37607.2
48048.7
15.0
18.5
11.2
18.9
15.1
25.2
18.9
31.9
24.6
32.3
32.7
31.5
24.3
23.7
19.5
18.7
26.7
12.0
14.4
11.1
18.3
14.1
20.9
16.4
28.6
12.5
18.5
11.5
21.1
13.6
22.0
14.9
925
Buy
19538.5
41.8
44.6
51.8
Divi's Lab
DIVLAB
736
57.9
17.6
16.5
14.2
12.7
30.7
28.5
28.0
26.5
25.9
23.0
22.2
20.7
Dr Reddy's Labs
DRREDD
2974 2,930 Hold
50783.0 141.4 74.5 114.5 154.3
21.0
39.9
26.0
19.3
17.3
7.0
11.5
15.1
20.6
10.0
13.6
15.8
Glenmark Pharma
GLEPHA
858 1,155 Buy
27076.6
32.2
63.0
54.4
60.8
26.7
13.6
15.8
14.1
16.2
26.8
20.8
21.9
21.2
29.7
20.6
18.8
Indoco Remedies
INDREM
267
315
Buy
2457.7
9.4
8.9
14.2
18.5
28.4
30.1
18.7
14.4
12.9
9.7
14.9
18.1
14.8
12.6
17.4
19.2
Ipca Laboratories
IPCLAB
526
605
Buy
6635.0
10.0
15.1
25.4
33.3
52.5
34.9
20.7
15.8
5.7
9.9
12.6
14.8
5.5
7.8
11.9
13.8
Jubilant Life
JUBLIF
704
810
Buy
11221.9
26.0
37.4
53.9
67.5
27.1
18.8
13.1
10.4
12.0
14.2
16.2
18.3
14.2
17.3
20.2
20.4
Lupin
LUPIN
1468 1,890 Buy
66297.6
50.4
63.9
65.4
83.5
29.1
23.0
22.4
17.6
18.6
19.8
20.0
23.7
20.7
21.5
18.6
19.9
13694.5
Natco Pharma
NATPHA
786
750
Buy
8.5
12.8
13.1
15.0
92.5
61.3
60.1
52.3
16.0
19.9
17.5
17.8
11.9
15.6
14.0
14.1
Sun Pharma
SUNPHA
670
850
Buy 161145.3 23.4
30.4
32.3
39.1
28.6
22.0
20.7
17.1
18.6
19.8
18.4
19.0
18.0
19.5
17.7
18.2
Syngene Int.
SYNINT
526
570
Hold
15.5
16.9
20.5
51.3
36.7
33.7
27.7
13.2
17.8
18.1
20.7
21.0
23.2
20.6
20.4
Torrent Pharma
TORPHA
1286 1,475 Buy
Unichem Lab
UNILAB 277 285
Source: Company, ICICIdirect.com Research
Hold
10520.0
11.1
21754.9 107.8 55.7
62.2
77.6
11.9
23.1
20.7
16.6
46.7
21.0
23.8
26.5
53.8
23.0
21.5
22.3
2513.6
17.5
23.7
22.5
21.0
15.8
11.7
13.8
14.5
16.2
18.9
11.7
11.3
13.3
15.6
12.3
ICICI Securities Ltd | Retail Equity Research
13.2
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RATING RATIONALE
ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns
ratings to its stocks according to their notional target price vs. current market price and then categorises them
as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional
target price is defined as the analysts' valuation for a stock.
Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction;
Buy: >10%/15% for large caps/midcaps, respectively;
Hold: Up to +/-10%;
Sell: -10% or more;
Pankaj Pandey
Head – Research
[email protected]
ICICIdirect.com Research Desk,
ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No 7, MIDC,
Andheri (East)
Mumbai – 400 093
[email protected]
ICICI Securities Ltd | Retail Equity Research
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ANALYST CERTIFICATION
We /I, Siddhant Khandekar CA-INTER, Mitesh Shah MS (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.
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 is a wholly-owned 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.
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 recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior
written consent of ICICI Securities. While we would endeavour to update the information herein on a reasonable basis, ICICI Securities is under no obligation to update or keep the information current. Also,
there may be regulatory, compliance or other reasons that may prevent ICICI 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.
This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This
report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their
receiving this report. Nothing in this report constitutes investment, legal, accounting 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 must make their own investment decisions, based on their own investment objectives, financial
positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The
value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind
arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before
investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice.
ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in
the past twelve months.
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 or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the companies mentioned in
the report in the past twelve months.
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 interest at the time of publication of this report.
It is confirmed that Siddhant Khandekar CA-INTER, Mitesh Shah MS (Finance) Research Analysts of this report have not received any compensation from the companies mentioned in the report in the
preceding twelve months.
Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
ICICI Securities or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month
preceding the publication of the research report.
Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject
company/companies mentioned in this report.
It is confirmed that Siddhant Khandekar CA-INTER, Mitesh Shah MS (Finance) Research Analysts do not serve as an officer, director or employee of the companies mentioned in the report.
ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.
Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report.
We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities.
This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution,
publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities
described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to
observe such restriction.
report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their
receiving this report. Nothing in this report constitutes investment, legal, accounting 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 must make their own investment decisions, based on their own investment objectives, financial
positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The
value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind
arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before
investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to
change without notice.
ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in
the past twelve months.
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 or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the companies mentioned in
the report in the past twelve months.
ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities 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 have any material
conflict of interest at the time of publication of this report.
It is confirmed that Siddhant Khandekar CA-INTER Mitesh Shah MS (Finance), Research Analysts of this report have not received any compensation from the companies mentioned in the report in the
preceding twelve months.
Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
ICICI Securities Ltd | Retail Equity Research
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