Cipla Accumulate

Pharmaceuticals | Q2FY24 Result Update

Show of strength across key markets CMP Rs 1,174

 Cipla’s Q2FY24 earnings beat estimates on account of better than expected Target / Upside Rs 1,334 / 14%
performance in US and SAGA markets while India was in line. NIFTY 19,047
 Revenues at Rs66.8bn (14.6% YoY, 5.5% QoQ) was above our estimate. Scrip Details
Strong US sales at US$229mn grew 27.9%/3.2% YoY/QoQ. Our estimates
Equity / FV Rs 1,614mn / Rs 2
suggest gRevlimid sales is at US$40mn in Q2. EBITDA at Rs17.3bn (+33.1%
YoY) and EBITDA margin at 26.0%, expanded 362bps/236bps YoY/QoQ. Ex Market Cap Rs 947bn
Revlimid, we believe base business margin was at ~23.6%. USD 11.5bn
 We upgrade our earnings estimates by 6.2%/4.9% in FY24E/FY25E assuming 52-week High/Low Rs 1,278/ 852
higher than expected US sales and operating margin. Rolling over to FY26, Avg. Volume (no) 18,62,900
we maintain Accumulate with the revised target price of Rs1,334.
Bloom Code CIPLA IN
US growth led by expanding Lanreotide market share & base business Price Performance 1M 3M 12M
US business grew 27.9%/3.2% YoY/ QoQ at US$229mn driven by traction in
Absolute (%) (1) 0 1
a)Lanreotide market share (at 20%) and b)core products led by improved
opportunities in US business backed by tapering price erosion. Considering the Rel to NIFTY (%) (1) 0 (10)
strong growth in this quarter the company has upgraded its US sales guidance
Result Update

to US$220-US$225mn as a new quarterly base. With key launches like gAdvair & Shareholding Pattern
Abraxane on hold but better traction in base business we expect US revenue CAGR Mar'23 Jun'23 Sep'23
of 9.4% over FY23-FY26E. Promoters 33.6 33.5 33.5
Continued traction in one India portfolio MF/Banks/FIs 22.1 24.3 24.2
Branded business continued its volume traction and market share expansion across FIIs 27.4 25.5 25.7
therapies and is expected to grow higher than the IPM going forward. The company Public / Others 16.9 16.7 16.6
is already growing above the IPM in therapies like respiratory and cardio. Supported
by the ramp-up of chronic therapies and new launches, we expect India revenue Valuation (x)
CAGR of 12% over FY23-26E. FY24E FY25E FY26E
Valuation P/E 23.6 21.2 19.5
With its strong India business franchise, and traction in differentiated key launches EV/EBITDA 14.4 12.7 11.4
in the US, we expect a net profit CAGR of 18.3% over FY23-26E. We introduce FY26 ROE (%) 16.3 16.3 15.6
earnings and maintain our Accumulate rating with a revised target price of Rs1,334
RoACE (%) 15.8 15.7 15.2
ascribing 22x FY26E P/E. Clearance of Indore plant and launch of Advair & Abraxane
could be an upside to our estimates. Key risks: Price erosion in the US, Compliance
issues on its facilities and adverse pricing regulations in India by NPPA. Estimates (Rs bn)
Q2FY24 Result (Rs Mn) FY24E FY25E FY26E
Particulars Q2FY24 Q2FY23 YoY (%) Q1FY24 QoQ (%) Revenue 258.9 276.4 298.5
Revenue 66,782 58,285 14.6 63,289 5.5 EBITDA 62.1 68.6 74.0
Total Expense 49,444 45,262 9.2 48,350 2.3 PAT 40.2 44.7 48.5
EBITDA 17,338 13,023 33.1 14,939 16.1 EPS (Rs.) 49.8 55.5 60.1
Depreciation 2,900 2,994 (3.1) 2,392 21.2
EBIT 14,437 10,030 43.9 12,547 15.1
Other Income 1,763 1,230 43.4 1,363 29.4
VP Research: Rashmi Shetty
Tel: +9122 40969724
Interest 258 256 1.0 164 57.4
E-mail: [email protected]
EBT 15,942 11,004 44.9 13,746 16.0
Tax 4,384 3,026 44.9 3,780 16.0
RPAT 11,309 7,889 43.4 9,957 13.6 Associate: Candice Pereira
Tel: +9122 40969633
APAT 11,309 7,889 43.4 9,957 13.6
E-mail: [email protected]
(bps) (bps)
Gross Margin (%) 65.4 62.9 243 64.7 71
EBITDA Margin (%) 26.0 22.3 362 23.6 236 Associate: Zain Gulam Hussain
NPM (%) 16.9 13.5 340 15.7 120 Tel: +9122 40969790
Tax Rate (%) 27.5 27.5 0 27.5 0 E-mail: [email protected]
EBIT Margin (%) 21.6 17.2 441 19.8 179

October 27, 2023

 Quarterly revenue mix
Particulars (Rs mn) Q2FY24 Q2FY23 YoY (%) Q1FY24 QoQ (%) H1FY24 H1FY23 YoY (%)
India 28,170 25,630 9.9 27,720 1.6 55,890 50,460 10.8
North America 18,870 14,320 31.8 18,220 3.6 37,090 26,310 41.0
SAGA 9,930 8,670 14.5 7,480 32.8 17,410 16,550 5.2
International Markets 7,340 7,630 (3.8) 7,790 (5.8) 15,130 14,830 2.0
Global APIs 1,470 1,530 (3.9) 1,360 8.1 2,830 2,880 (1.7)
Others 1,000 510 96.1 710 40.8 1,710 1,020 67.6
Total 66,780 58,290 14.6 63,280 5.5 1,30,060 1,12,050 16.1
Source: Company, DART

Actual vs DART estimates

Particulars (Rsmn) Q2FY24 Q2FY24E Variance (%) Comments
Revenue 66,782 64,053 4.3 Higher US sales led to slightly higher than estimates
EBITDA 17,338 15,052 15.2 Higher sales, better gross margin and lower opex led to beat on
EBITDA Margin (%) 26.0 23.5 246bps margin
PAT 11,309 10,101 12.0 Higher than expected operating performance led to beat on PAT
EPS (Rs) 14.0 12.5 12.0 estimates
Source: Company, DART

Change in estimates
FY24E FY25E
Particulars (Rs mn)
Old New Chg. (%) Old New Chg. (%)
Revenue 2,57,965 2,58,869 0.4 2,78,105 2,76,437 (0.6)
EBITDA 59,332 62,129 4.7 66,189 68,556 3.6
EBITDA Margin (%) 23.0 24.0 100bps 23.8 24.8 100bps
PAT 37,823 40,161 6.2 42,630 44,724 4.9
EPS (Rs) 46.9 49.8 6.2 52.8 55.4 4.9
Source: Company, DART

We upgrade our earnings estimates by 6.2%/4.9% in FY24E/FY25E assuming higher than

expected US sales and operating margin.

Annual revenue mix

Particulars (Rs mn) FY22 FY23E FY24E FY25E FY26E
India 98,280 98,690 1,10,533 1,23,797 1,38,652
% of Sales 45.2 43.4 43.2 45.2 46.9
% YoY 27.0 0.4 12.0 12.0 12.0
North America 44,310 59,090 73,662 76,165 77,382
% of Sales 37.1 45.9 50.6 50.8 49.3
% YoY 8.3 33.4 24.7 3.4 1.6
SAGA 36,770 31,660 30,723 29,346 31,958
% of Sales 16.9 13.9 12.0 10.7 10.8
% YoY 6.6 (13.9) (3.0) (4.5) 8.9
International Market 28,740 30,280 32,097 34,665 37,438
% of Sales 13.2 13.3 12.5 12.7 12.7
% YoY 1.2 5.4 6.0 8.0 8.0
APIs 7,600 5,680 5,964 6,262 6,575
% of Sales 3.5 2.5 2.3 2.3 2.2
% YoY (4.8) (25.3) 5.0 5.0 5.0
Others 1,930 2,130 3,089 3,397 3,737
% of Sales 0.9 0.9 1.2 1.2 1.3
% YoY (21.5) 10.4 45.0 10.0 10.0
Total sales 2,17,630 2,27,530 2,56,067 2,73,632 2,95,742
Source: Company, DART

October 27, 2023 2 Cipla

 Story in Charts

US growth led by traction in base business & Lanreotide market share

19,500 52.0 60
18,500
17,500 42.3 50
38.7
16,500 35.1 40
15,500 31.8
14,500 20.7 30
13,500 15.5
12,500 20
8.8
11,500 10
2.4
10,500
9,500 0
Q2FY22

Q3FY22

Q4FY22

Q1FY23

Q2FY23

Q3FY23

Q4FY23

Q1FY24

Q2FY24
US Sales (Rs mn) yoy (%) - RHS
Source: Company, DART

Momentum continues in India business

29,000 20.8 23
28,000 15.6 18
12.9 11.6
27,000 9.9 13
26,000 6.1
25,000 3.5 8
1.8
24,000 3
23,000
(2)
22,000 -8.4
21,000 (7)
20,000 (12)
Q2FY22

Q3FY22

Q4FY22

Q1FY23

Q2FY23

Q3FY23

Q4FY23

Q1FY24

Q2FY24
India Revenue (Rsm) yoy (%) - RHS
Source: Company, DART

Expect revenue CAGR of 9.5% over FY23-25E

3,10,000 13.6 15
12.5
2,90,000 11.8
13
2,70,000
11
2,50,000
8.1
2,30,000 9
6.9
2,10,000
7
1,90,000 4.5
5
1,70,000
1,50,000 3
FY21 FY22 FY23 FY24E FY25E FY26E
Total Sales (Rs mn) YoY growth (%) - RHS
Source: Company, DART

October 27, 2023 3 Cipla

 Strong US and India growth to drive expansion in EBITDA margin
85,000 26
24.8 24.8
75,000
24.0 25
65,000
24
55,000
22.3
22.1 23
45,000 21.8

35,000 22
FY21 FY22 FY23 FY24E FY25E FY26E
EBITDA (Rs mn) EBITDA (%) - RHS
Source: Company, DART

ROIC to expand over FY23-FY26E with improving profitability

24 22.9
23 22.2
22 21.0
21
20
19 18.3
17.5
18
16.7
17
16
15
14
FY21 FY22 FY23 FY24E FY25E FY26E

Source: Company, DART

One year forward P/E band

40

35

30

25

20

15

10
Apr-21
Apr-17

Apr-18

Apr-19

Apr-20

Apr-22

Apr-23
Oct-19

Jan-22
Oct-16

Oct-17

Oct-18

Oct-20

Oct-21

Oct-22

Oct-23
Jan-17

Jan-18

Jan-19

Jan-20

Jul-20

Jan-21

Jan-23
Jul-17

Jul-18

Jul-19

Jul-21

Jul-22

Jul-23

P/E (x) Mean +1SD +2SD -1SD -2SD

Source: Company, DART

October 27, 2023 4 Cipla

 Earning KTA’s
Guidance
 Raised EBITDA margin guidance from 23% to 24% for FY24.
 Upgraded guidance for US quarterly base sales to be around US$220-225mn for Q3FY24
versus earlier US$210-215mn
 On long term basis, India is expected to grow at 12% CAGR over five years.

US business
 Highest ever quarterly revenue at US$229mn with a strong double-digit quarterly growth
of 28% YoY for Q2FY24.
 Strong demand signals and BD&L deals drive growth in base business.
 gLanreotide market share has increased from 18%+ in Q1FY24 to 20% in Q2FY24, as per
IQVIA Aug’23
 gRevlimid sales were in-line with Q1FY24.
 Focus is to grow the core revenue, resolve the US FDA observations, maximize partnered
launches and also de-risk assets in order to accelerate new launches.
 Currently there are three complex products undergoing clinical trials, with filings targeted
in FY24 & FY25. Symbicort is one of them where clinical trials are expected to be
completed soon and filing is expected in Q1FY25.
 The company plans to launch one peptide product in FY24 (market size - ~US$300-400mn)
and three to four peptide products in FY25.
 The company is also planning to do some para IV filings in FY24-25.
 Management believes contribution from differentiated product pipeline is 70-75% of
total filings. Focus is more on reducing the number of filings and doing only differentiated
filings.
 gAdvair & gAbraxane progression during the quarter were as per expectation and expects
transfer process to be completed soon.
 In Long Island, New York, all of the Invagen facilities has completed cGMP inspection,
while unit 3 facility has received VAI, unit 2 has received no observation from USFDA.
 The company’s Indore facility has received OAI status, to which the company has already
taken corrective measures and have made satisfactory progress as on date.
 At Goa, the facility has received CAPA implementation and remediation exercise has been
completed. Cipla will soon submit requisite data to enable the re-inspection.
 The company will file some inhalation assets shortly.
 Certain products have seen better volume share, and for some products the company has
taken price hikes as well.
 gRevlimid has seen an increase in sales from Q4FY23 to Q1FY24, while sales for Q2FY24
was inline with Q1FY24.
 Pricing environment in the US changes QoQ, although trend is more or less the same and
don’t expect further acceleration.
 Symbicort filing is expected from multiple facilities by Q3FY24.
 For gAlbuterol, market shifts between three version of gAlbuterol, and depending upon
the market choice of variant, market share may vary. gAlbuterol’s current market share
is ~12%.
 The management has highlighted that the company has two inhaler plants, one in Indore
and the other one in the US.
 Goa plant capacity has increased as it is primarily focuses international market.

October 27, 2023 5 Cipla

  Gradual improvement in market share of gLanreotide is expected over a period of time.
 Market share of gLeuprolide is expected to gradually increase over a period of time,
currently its market share is close to 1%.

One India business –

 India formulation grew 10% YoY in Q2FY24, with continued momentum across Branded
Prescription, Trade Generics and Consumer Health, despite weaker anti-infective sales.
 Branded prescription business continue its market beating performance, grew by 11%YoY
driven by key therapies in chronic portfolio.
 The company retains leadership position in respiratory. Respiratory and cardiac therapies
are growing faster than the market. Margin in respiratory are far better as it is
manufactures in-house.
 Cipla has 22 brands with revenue more than Rs1bn, as per IQVIA MAT Sep’23.
 One India business’ focus is to recoup the growth in the wellness portfolio while
maintaining the market beating growth in Rx and Gx segment.
 Increase in chronic mix has led to better EBITDA margin.
 Pediatric, respiratory, urology, anti-infective & cardiac, expect to grow significantly higher
than market.
 Excluding tender income in Q2FY23 and acquisition in Q2FY24, core business growth in
both Rx & Gx is around 11%.
 In diabetes portfolio: Semaglutide is likely to go off patent earliest in India, Cipla will be
launching Oral solid and if required, will also produce injectables. Liraglutide is only
available in injectable form.
 Depending upon the number of players in Semaglutide, market share will vary.
 Trade generic:-
o Strong focus on on-ground commercial execution drives double-digit growth despite
weak seasonality.
o Trade generic margin was aided by declining in raw material prices.
o Continued focus on customer engagement leveraging both physical & digital
capabilities.
o 26 new products launched in H1FY24.
o 7 brands launched in past 12 months are with revenues above Rs500mn mark.
 Consumer health franchise’s quarterly performance was impacted by inconsistent
weather patterns, although core portfolio remains strong with five brands over Rs1bn
sales in last twelve months. Expect sales to bounce back in Q3FY24.
 Consumer health business saw robust traction in anchor as well as transitional brands.
 EBITDA is expected to sustain at mid-teens range in consumer health business.

SAGA business –
 South Africa Private Market business grew at 12% YoY in local currency terms driven by
traction in prescription business and OTC; Outpaced overall market by growing at 10% vs
market growth at 4%.
 SAGA business is focused towards private markets and select tender business with focus
on margin expansion.
 Growth in SAGA business was driven by performance in oncology, CNS & CVS & hospital
segment.
 Increase in private market mix in the overall revenue lead to better QoQ margins.

October 27, 2023 6 Cipla

  Six brands were launched across multiple therapies in Q2FY24.
 Broncol market revenue reached ZAR100mn+, Coryx set to be the next Cipla SA OTC brand
with MAT revenue ZAR100mn+.
 Broncol has captured 50% market share.
 The company is second in private market & targeting to achieve no 1 position.
 SAGA business is tender dependent and lumpy, management commented that QCIL will
be discontinued from Q3FY24.

Actor pharma acquisition –

 Expand Cipla’s reach to enhanced range of therapies and wider basket of product
portfolio.
 Growing faster than the market and believe to have potential for further growth.
 Focus on replicating the success of Mirren OTC brands by leveraging the existing
distribution channel.

Other highlights –
 Depreciation and amortization, include partial impairment of non-operational
manufacturing unit and impairment of acquisition cost of intangible in the form of
products in the US.
 Cash as on Sep’23 is Rs68.1bn, post payment of dividend.
 Combination of both volume and price has played a major role in gross margin
improvement.
 Improvement in EBITDA margin was also on account of decline in logistics expenses as air
cost has reduced by 8-9% and sea rates have reduced by 16-17%.
 As per management, three businesses are running ahead of internal estimates = US, India
& SAGA.
 PLI benefit for the quarter was higher than Q1FY24 and is included in other operating
income.

October 27, 2023 7 Cipla

 Financial Performance
Profit and Loss Account
(Rs Mn) FY23A FY24E FY25E FY26E
Revenue 2,27,531 2,58,869 2,76,437 2,98,550
Total Expense 1,77,262 1,96,740 2,07,881 2,24,509
COGS 82,523 91,640 96,753 1,04,492
Employees Cost 38,301 42,196 44,230 47,768
Other expenses 56,438 62,905 66,898 72,249
EBIDTA 50,270 62,129 68,556 74,040
Depreciation 11,721 11,487 11,972 12,529
EBIT 38,549 50,641 56,584 61,512
Interest 1,095 871 792 780
Other Income 4,755 5,705 5,934 6,171
Exc. / E.O. items (1,824) 0 0 0
EBT 40,384 55,475 61,725 66,902
Tax 12,029 14,978 16,666 18,064
RPAT 28,019 40,161 44,724 48,503
Minority Interest 336 336 336 336
Profit/Loss share of associates 0 0 0 0
APAT 29,300 40,161 44,724 48,503

Balance Sheet
(Rs Mn) FY23A FY24E FY25E FY26E
Sources of Funds
Equity Capital 1,614 1,614 1,614 1,614
Minority Interest 3,058 3,058 3,058 3,058
Reserves & Surplus 2,32,464 2,56,343 2,90,616 3,28,795
Net Worth 2,34,078 2,57,957 2,92,230 3,30,409
Total Debt 5,204 6,704 6,604 6,504
Net Deferred Tax Liability 6,401 6,401 6,401 6,401
Total Capital Employed 2,48,740 2,74,119 3,08,292 3,46,371

Applications of Funds
Net Block 91,007 86,519 81,547 76,018
CWIP 6,892 6,892 6,892 6,892
Investments 23,076 26,297 29,976 34,181
Current Assets, Loans & Advances 1,73,659 2,04,191 2,41,995 2,84,763
Inventories 51,564 58,666 62,648 67,659
Receivables 40,570 46,158 49,290 53,233
Cash and Bank Balances 15,646 25,301 46,727 70,059
Loans and Advances 985 985 985 985
Other Current Assets 33,995 39,094 44,958 51,701

Less: Current Liabilities & Provisions 45,893 49,780 52,118 55,484

Payables 33,026 36,656 38,731 41,829
Other Current Liabilities 12,867 13,124 13,387 13,654
sub total
Net Current Assets 1,27,765 1,54,412 1,89,877 2,29,280
Total Assets 2,48,740 2,74,119 3,08,292 3,46,371
E – Estimates

October 27, 2023 8 Cipla

 Important Ratios
Particulars FY23A FY24E FY25E FY26E
(A) Margins (%)
Gross Profit Margin 63.7 64.6 65.0 65.0
EBIDTA Margin 22.1 24.0 24.8 24.8
EBIT Margin 16.9 19.6 20.5 20.6
Tax rate 29.8 27.0 27.0 27.0
Net Profit Margin 12.3 15.5 16.2 16.2
(B) As Percentage of Net Sales (%)
COGS 36.3 35.4 35.0 35.0
Employee 16.8 16.3 16.0 16.0
Other 24.8 24.3 24.2 24.2
(C) Measure of Financial Status
Gross Debt / Equity 0.0 0.0 0.0 0.0
Interest Coverage 35.2 58.1 71.4 78.8
Inventory days 83 83 83 83
Debtors days 65 65 65 65
Average Cost of Debt 16.3 14.6 11.9 11.9
Payable days 53 52 51 51
Working Capital days 205 218 251 280
FA T/O 2.5 3.0 3.4 3.9
(D) Measures of Investment
AEPS (Rs) 36.3 49.8 55.5 60.1
CEPS (Rs) 50.9 64.0 70.3 75.7
DPS (Rs) 5.0 7.2 8.0 8.7
Dividend Payout (%) 13.8 14.4 14.4 14.4
BVPS (Rs) 290.3 319.9 362.4 409.7
RoANW (%) 12.7 16.3 16.3 15.6
RoACE (%) 13.2 15.8 15.7 15.2
RoAIC (%) 17.5 21.0 22.2 22.9
(E) Valuation Ratios
CMP (Rs) 1174 1174 1174 1174
P/E 32.3 23.6 21.2 19.5
Mcap (Rs Mn) 9,46,974 9,46,974 9,46,974 9,46,974
MCap/ Sales 4.2 3.7 3.4 3.2
EV 9,05,633 8,94,388 8,69,463 8,42,293
EV/Sales 4.0 3.5 3.1 2.8
EV/EBITDA 18.0 14.4 12.7 11.4
P/BV 4.0 3.7 3.2 2.9
Dividend Yield (%) 0.4 0.6 0.7 0.7
(F) Growth Rate (%)
Revenue 4.5 13.8 6.8 8.0
EBITDA 5.8 23.6 10.3 8.0
EBIT 4.2 31.4 11.7 8.7
PBT 15.6 37.4 11.3 8.4
APAT 1.1 37.1 11.4 8.4
EPS 1.1 37.1 11.4 8.4
E – Estimates

October 27, 2023 9 Cipla

 Cash Flow
Particulars FY23A FY24E FY25E FY26E
Profit before tax 35,629 49,770 55,792 60,731
Depreciation & w.o. 11,721 11,487 11,972 12,529
Net Interest Exp 1,095 871 792 780
Direct taxes paid (12,648) (14,978) (16,666) (18,064)
Change in Working Capital (17,239) (16,641) (13,790) (15,954)
Non Cash 0 0 0 0
(A) CF from Operating Activities 18,559 30,509 38,101 40,023
Capex {(Inc.)/ Dec. in Fixed Assets n WIP} (9,571) (7,000) (7,000) (7,000)
Free Cash Flow 8,988 23,509 31,101 33,023
(Inc)./ Dec. in Investments 0 0 0 0
Other 4,755 5,705 5,934 6,171
(B) CF from Investing Activities (4,817) (1,295) (1,066) (829)
Issue of Equity/ Preference 1 0 0 0
Inc./(Dec.) in Debt (3,038) 1,500 (100) (100)
Interest exp net (1,095) (871) (792) (780)
Dividend Paid (Incl. Tax) 0 0 0 0
Other (13,249) (20,189) (14,715) (14,982)
(C) CF from Financing (17,381) (19,560) (15,608) (15,862)
Net Change in Cash (3,639) 9,654 21,427 23,332
Opening Cash balances 19,285 15,646 25,301 46,727
Closing Cash balances 15,646 25,301 46,727 70,059
E – Estimates

Notes

October 27, 2023 10 Cipla

 DART RATING MATRIX
Total Return Expectation (12 Months)
Buy > 20%
Accumulate 10 to 20%
Reduce 0 to 10%
Sell < 0%

Rating and Target Price History

Month Rating TP (Rs.) Price (Rs.)

(Rs) CIPLA Target Price Nov-22 BUY 1,360 1,146
1,410 Jan-23 BUY 1,314 1,035
1,290 May-23 Accumulate 1,060 937
Jul-23 Accumulate 1,173 1,069
1,170 *Price as on recommendation date

1,050

930

810
Jul-23
Jan-23

Jun-23

Sep-23
Nov-22

Dec-22

Aug-23
Oct-22

Feb-23

Mar-23

Apr-23

Oct-23
May-23

DART Team
Purvag Shah Managing Director [email protected] +9122 4096 9747

Amit Khurana, CFA Head of Equities [email protected] +9122 4096 9745

CONTACT DETAILS
Equity Sales Designation E-mail Direct Lines
Dinesh Bajaj VP - Equity Sales [email protected] +9122 4096 9709
Kapil Yadav VP - Equity Sales [email protected] +9122 4096 9735
Jubbin Shah VP - Equity Sales [email protected] +9122 4096 9779
Girish Raj Sankunny VP - Equity Sales [email protected] +9122 4096 9625
Pratik Shroff AVP - Equity Sales [email protected] +9122 4096 9621
Equity Trading Designation E-mail
P. Sridhar SVP and Head of Sales Trading [email protected] +9122 4096 9728
Chandrakant Ware VP - Sales Trading [email protected] +9122 4096 9707
Shirish Thakkar VP - Head Domestic Derivatives Sales Trading [email protected] +9122 4096 9702
Kartik Mehta Asia Head Derivatives [email protected] +9122 4096 9715
Bhavin Mehta VP - Derivatives Strategist [email protected] +9122 4096 9705

Dolat Capital Market Private Limited.

Naman Midtown, A-1203, 12th Floor, Senapati Bapat Marg, Prabhadevi, Mumbai 400013
Analyst(s) Certification
The research analyst(s), with respect to each issuer and its securities covered by them in this research report, certify that: All of the views expressed in this research report
accurately reflect his or her or their personal views about all of the issuers and their securities; and No part of his or her or their compensation was, is, or will be directly or
indirectly related to the specific recommendations or views expressed in this research report.
I. Analyst(s) and Associate (S) holding in the Stock(s): (Nil)
II. Disclaimer:
This research report has been prepared by Dolat Capital Market Private Limited. to provide information about the company(ies) and sector(s), if any, covered in the report
and may be distributed by it and/or its affiliated company(ies) solely for the purpose of information of the select recipient of this report. This report and/or any part thereof,
may not be duplicated in any form and/or reproduced or redistributed without the prior written consent of Dolat Capital Market Private Limited. This report has been
prepared independent of the companies covered herein. Dolat Capital Market Private Limited. and its affiliated companies are part of a multi-service, integrated investment
banking, brokerage and financing group. Dolat Capital Market Private Limited. and/or its affiliated company(ies) might have provided or may provide services in respect of
managing offerings of securities, corporate finance, investment banking, mergers & acquisitions, financing or any other advisory services to the company(ies) covered
herein. Dolat Capital Market Private Limited. and/or its affiliated company(ies) might have received or may receive compensation from the company(ies) mentioned in this
report for rendering any of the above services. Research analysts and sales persons of Dolat Capital Market Private Limited. may provide important inputs to its affiliated
company(ies) associated with it. While reasonable care has been taken in the preparation of this report, it does not purport to be a complete description of the securities,
markets or developments referred to herein, and Dolat Capital Market Private Limited. does not warrant its accuracy or completeness. Dolat Capital Market Private Limited.
may 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. This report
is provided for information only and is not an investment advice and must not alone be taken as the basis for an investment decision. The investment discussed or views
expressed herein may not be suitable for all investors. The user assumes the entire risk of any use made of this information. The information contained herein may be
changed without notice and Dolat Capital Market Private Limited. reserves the right to make modifications and alterations to this statement as they may deem fit from time
to time. Dolat Capital Market Private Limited. and its affiliated company(ies), their directors and employees may; (a) from time to time, have a long or short position in, and
buy or sell the securities of the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or
may have any other potential conflict of interests with respect to any recommendation and other related information and opinions. This report is neither an offer nor
solicitation of an offer to buy and/or sell any securities mentioned herein and/or not an official confirmation of any transaction. 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 Dolat Capital Market Private Limited. and/or its affiliated company(ies) 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 a certain category of investors.
Persons in whose possession this report may come, are required to inform themselves of and to observe such restrictions.

For U.S. persons only: This research report is a product of Dolat Capital Market Private Limited, under Marco Polo Securities 15a-6 chaperone service, which is the employer
of the research analyst(s) who has prepared the research report. The research analyst(s) preparing the research report is/are resident outside the United States (U.S.) and
are not associated persons of any U.S. regulated broker-dealer and therefore the analyst(s) is/are not subject to supervision by a U.S. broker-dealer, and is/are not required
to satisfy the regulatory licensing requirements of FINRA or required to otherwise comply with U.S. rules or regulations regarding, among other things, communications
with a subject company, public appearances and trading securities held by a research analyst account.

Research reports are intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the U.S. Securities and Exchange Act, 1934 (the
Exchange Act) and interpretations thereof by U.S. Securities and Exchange Commission (SEC) in reliance on Rule 15a-6(a)(2). If the recipient of this report is not a Major
Institutional Investor as specified above, then it should not act upon this report and return the same to the sender. Further, this report may not be copied, duplicated and/or
transmitted onward to any U.S. person, which is not the Major Institutional Investor. In reliance on the exemption from registration provided by Rule 15a-6 of the Exchange
Act and interpretations thereof by the SEC in order to conduct certain business with Major Institutional Investors, Dolat Capital Market Private Limited has entered into a
chaperoning agreement with a U.S. registered broker-dealer, Marco Polo Securities Inc. ("Marco Polo"). Transactions in securities discussed in this research report should
be affected through Marco Polo or another U.S. registered broker dealer.

Dolat Capital Market Private Limited.

Corporate Identity Number: U65990GJ993PTC116741
Member: BSE Limited and National Stock Exchange of India Limited.
SEBI Registration No: BSE - INZ000274132, NSE - INZ000274132, Research: INH000000685
Regd. office: 1401-1409, Dalal Street Commercial, Block 53 (Bldg. No.53E) Zone-5, Road-5E, Gift City, Sector 9, Gandhinagar-382355 Gujarat, India.
Board: +9122 40969700 | Fax: +9122 22651278 | Email: [email protected] | www.dolatresearch.com

Our Research reports are also available on Reuters, Thomson Publishers, DowJones and Bloomberg (DCML <GO>)