Larsen & Toubro Limited India Equity Analytics 23-Jan-20 Result Update Industry Bloomberg BSE CODE Performance is likely to Bounce Back The views expressed above accurately reflect the personal views of the authors about the subject companies and its(their) securities. The authors have not and will not receive any compensation for providing a specific recommendation or view. Narnolia Financial Advisors Ltd. does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. RESEARCH ANALYST RATING BUY CMP Price Target Potential Upside 1331 1604 21% Rating Change Estimate Change Target Change STOCK INFO 52wk Range H/L Mkt Capital (Rs Cr) Free float (%) Avg. Vol 1M (,000) No. of Shares (Cr) Promoters Pledged % 1606/1202 186100 87% 2771 140 0% Please refer to the Disclaimers at www.narnolia.com Narnolia Financial Advisors Ltd. Eng. & Cons. LT IN 500510 3QFY20 Result Update Muted performance by Infrastructure business Infrastructure division of the company has posted revenue de growth of 5% YoY on account of some execution challenges and preservation of working capital. Execution was impacted as the projects in the Delhi has stopped for the 2 and half months due to environmental related issues, projects in Andhra Pradesh was under scanner and the Mumbai costal road projects stopped due to some technical issues and PIL. In some of the projects company has deliberately slow down the execution speed in order to balance the working capital requirement. Payments are delayed from the Central and State governments on account of liquidity crunch. Though the other segments like Hydrocarbon and Heavy engineering and services business has performed strong and reported strong numbers. Despite the revenue de growth in Infrastructure, EBITDA margin has expanded by 70 bps on account of job mix and realization of variation claims. EBITDA margin is also improved on the overall basis as the entire core Engineering business reported expansion in the margin in range of 70- 400 bps. Performance are expected to bounce back Work on the Mumbai costal road projects has started and expected to pick up in the Q4FY20. Execution was stopped for 2 and half month on Delhi projects in last quarter has started now and the new government in Andhra Pradesh has settle down and work has started on the projects. The growth in the Infrastructure business is expected to bounce back going ahead. Management is also confident to achieve the guided growth level and maintain revenue growth guidance at 10-12% for the FY20. Some of the big EPC projects are also deferred in the last quarter are expected to award in Q4FY20. Though the progress on the government founded projects are slow but the company is focused on the multi-lateral funded projects in the domestic market. Management is also seeing strong growth in the Hydrocarbon business. Capex cycle of the private sector is still muted but some projects in the airport sectors. Management is confident to achieve the guided order inflow guidance of 10% growth in FY20. View and Valuation Performance in the Q3FY20 was the one off for the company and it is expected to come back on the tract by the next quarter only. We expect execution is likely to improve on the back of work resumption on the key projects and management’s focus on the better cash flow project execution. Strong growth prospectus in hydrocarbon business and orders from the multi-lateral funding agencies are likely to support the order inflow, though the orders for the central and state government is running at the slow pace. Working capital continues to remain under pressure and key thing to look out. Considering the higher working capital requirement, we have marginally reduced our FY21 EPS estimates by 5%. We continue to remain positive on the stock and maintain our BUY rating with the target price of Rs 1604 per share on SoTP basis (Core E&C business at 23x FY21 EPS and Rs 395 per share for the Subsi business). • Revenue on consolidated basis was up by only 6% YoY, lower than our estimates mainly on account of muted performance by Infrastructure division. Revenue for the segment was down 5% YoY due to certain execution challenges and preservation of working capital level. • While the other divisions like Hydrocarbon and Heavy engineering has maintained its execution momentum and posted strong growth of 16% and16% respectively. • IT and Technology business has put up strong performance (up by 65% YoY) as the mindtree revenue has started consolidating from Q2FY20. Adjusting to Mindtree, LTI and LTTS has performed well and revenue was up by 15% YoY. • Financial services business growth was under pressure (up by only 9% YoY) on account of slowdown in realty business. • Despite the muted performance on the revenue front, EBITDA margin has expanded by 40 bps mainly on account of better margin on the core engineering business. • Slowdown in economic activity has resulted into negative growth (1.5%) in order inflow; Rs 41570 Cr. International business has reported order inflow of Rs 17900 Cr at growth of 55% YoY. FINANCIAL Net Sales EBITDA EBIT PAT EPS (Rs) EPS Gr. (%) ROE ROCE BV / Share P/B (X) P/E (x) EV/EBITDA FY19 FY20E 141007 16325 14241 8675 62 15% 14% 9% 445 3.1 22.4 16.0 148530 17985 15667 9977 71 15% 14% 9% 491 2.7 18.7 14.9 171082 21502 19313 10763 77 8% 14% 10% 544 2.4 17.3 13.0 FY21E Fig in Rs Cr
Transcript
Larsen & Toubro LimitedIndia Equity Analytics 23-Jan-20 Result Update
IndustryBloombergBSE CODE
Performance is likely to Bounce Back
The views expressed above accurately reflect the personal views of the authors about the subject companies and its(their) securities. The authors have not and will not receive any compensation for providing a specific recommendation or view. Narnolia Financial Advisors Ltd. does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.
RESEARCH ANALYST
RATING BUY
CMP
Price Target
Potential Upside
1331
1604
21%
Rating Change
Estimate Change
Target Change
STOCK INFO
52wk Range H/L
Mkt Capital (Rs Cr)
Free float (%)
Avg. Vol 1M (,000)
No. of Shares (Cr)
Promoters Pledged %
1606/1202
186100
87%
2771
140
0%
Please refer to the Disclaimers at www.narnolia.com Narnolia Financial Advisors Ltd.
Eng. & Cons.LT IN500510
3QFY20 Result Update
Muted performance by Infrastructure businessInfrastructure division of the company has posted revenue de growth of 5% YoY on account of some execution challenges and preservation of working capital. Execution was impacted as the projects in the Delhi has stopped for the 2 and half months due to environmental related issues, projects in Andhra Pradesh was under scanner and the Mumbai costal road projects stopped due to some technical issues and PIL. In some of the projects company has deliberately slow down the execution speed in order to balance the working capital requirement. Payments are delayed from the Central and State governments on account of liquidity crunch. Though the other segments like Hydrocarbon and Heavy engineering and services business has performed strong and reported strong numbers. Despite the revenue de growth in Infrastructure, EBITDA margin has expanded by 70 bps on account of job mix and realization of variation claims. EBITDA margin is also improved on the overall basis as the entire core Engineering business reported expansion in the margin in range of 70-400 bps.
Performance are expected to bounce back Work on the Mumbai costal road projects has started and expected to pick up in the Q4FY20. Execution was stopped for 2 and half month on Delhi projects in last quarter has started now and the new government in Andhra Pradesh has settle down and work has started on the projects. The growth in the Infrastructure business is expected to bounce back going ahead. Management is also confident to achieve the guided growth level and maintain revenue growth guidance at 10-12% for the FY20. Some of the big EPC projects are also deferred in the last quarter are expected to award in Q4FY20. Though the progress on the government founded projects are slow but the company is focused on the multi-lateral funded projects in the domestic market. Management is also seeing strong growth in the Hydrocarbon business. Capex cycle of the private sector is still muted but some projects in the airport sectors. Management is confident to achieve the guided order inflow guidance of 10% growth in FY20.
View and ValuationPerformance in the Q3FY20 was the one off for the company and it is expected to come back on the tract by the next quarter only. We expect execution is likely to improve on the back of work resumption on the key projects and management’s focus on the better cash flow project execution. Strong growth prospectus in hydrocarbon business and orders from the multi-lateral funding agencies are likely to support the order inflow, though the orders for the central and state government is running at the slow pace. Working capital continues to remain under pressure and key thing to look out. Considering the higher working capital requirement, we have marginally reduced our FY21 EPS estimates by 5%. We continue to remain positive on the stock and maintain our BUY rating with the target price of Rs 1604 per share on SoTP basis (Core E&C business at 23x FY21 EPS and Rs 395 per share for the Subsi business).
• Revenue on consolidated basis was up by only 6% YoY, lower than our estimates mainly
on account of muted performance by Infrastructure division. Revenue for the segment
was down 5% YoY due to certain execution challenges and preservation of working
capital level.
• While the other divisions like Hydrocarbon and Heavy engineering has maintained its
execution momentum and posted strong growth of 16% and16% respectively.
• IT and Technology business has put up strong performance (up by 65% YoY) as the
mindtree revenue has started consolidating from Q2FY20. Adjusting to Mindtree, LTI
and LTTS has performed well and revenue was up by 15% YoY.
• Financial services business growth was under pressure (up by only 9% YoY) on account
of slowdown in realty business.
• Despite the muted performance on the revenue front, EBITDA margin has expanded by
40 bps mainly on account of better margin on the core engineering business.
• Slowdown in economic activity has resulted into negative growth (1.5%) in order
inflow; Rs 41570 Cr. International business has reported order inflow of Rs 17900 Cr at
growth of 55% YoY.
FINANCIAL
Net Sales
EBITDA
EBIT
PAT
EPS (Rs)
EPS Gr. (%)
ROE
ROCE
BV / Share
P/B (X)
P/E (x)
EV/EBITDA
FY19 FY20E
141007
16325
14241
8675
62
15%
14%
9%
445
3.1
22.4
16.0
148530
17985
15667
9977
71
15%
14%
9%
491
2.7
18.7
14.9
171082
21502
19313
10763
77
8%
14%
10%
544
2.4
17.3
13.0
FY21E
Fig in Rs Cr
3QFY20 Results
LT
FINANCIALS
Net Sales
Other Income
COGS
Emp. Exp.
Sub-Cont.Exp.
Mfg Exp
Other Exp.
Total Exp.
EBITDA
Dep
EBIT
Intreset
Except. Item
PBT
Tax
PAT
3QFY19
34,234
589
12,840
4,445
1,976
3,661
1,522
30,483
3,751
405
3,346
534
-
3,401
1,126
2,042
4QFY19
43,303
611
17,099
4,489
1,967
3,664
1,546
38,024
5,279
435
4,844
507
-
4,948
1,234
3,216
1QFY20
29,636
384
9,958
4,552
2,079
2,859
1,746
26,317
3,319
461
2,857
587
94
2,655
795
1,361
YoY %
6%
-19%
-10%
38%
1%
-8%
40%
5%
10%
63%
3%
33%
NA
-5%
-37%
15%
QoQ%
3%
-20%
1%
0%
-1%
-3%
-6%
3%
2%
5%
2%
3%
NA
-2%
-10%
-7%
9MFY19
91,917
1,226
31,872
12,978
5,419
9,600
5,245
81,866
10,051
1,488
8,563
1,296
(295)
8,492
2,833
5,262
9MFY20
101,207
1,456
32,968
16,826
6,106
9,698
6,163
89,751
11,457
1,751
9,705
1,982
94
9,179
2,297
6,350
YoY %
10.1%
18.8%
3.4%
29.7%
12.7%
1.0%
17.5%
9.6%
14.0%
17.7%
13.3%
52.9%
NA
8.1%
-18.9%
20.7%
2QFY20
35,328
596
11,441
6,141
2,023
3,465
2,280
31,309
4,020
630
3,390
686
-
3,301
791
2,525
3QFY20
36,243
475
11,570
6,133
2,004
3,373
2,138
32,125
4,118
660
3,457
709
-
3,223
711
2,352
Narnolia Financial Advisors Ltd.
Muted Performance
Concall Highlights
• Management has maintained revenue guidance at 12-15% despite the muted performance in Q3FY20. Resumption of the
work on Mumbai Costal projects, Delhi projects and projects is Andhra Pradesh will support the growth going ahead.
• LT will focuses on the execution of better cash flow projects compared to state and central government projects.
• Private sector capex cycle is still muted and the new orders continue to drive by the public spending. Company mainly focuses
on the multi-lateral funded projects. Order pipeline is Rs 3 lakh Cr for the Q4FY20 .Of Rs 2.5lakh Cr domestic ordering
prospects, Rs 2.2 lakh Cr is from the infrastructure.
• Orde rInflow guidance has been maintained at 10-12% for FY20
• 50% of international order book is non-Middle East. Operations in Middle East have become a bit more challenging due to
localization efforts. That is one of the key reasons for L&T diversifying into new geographies
• Management is seeing some traction in Africa and Middle East as far as Infrastructure business is concerned.
• Policy is the big issue in the Defence business and hence no big orders for the private sector. Management does not expect
the P75 submarine orders (INR450bn) to be ordered in the near term.
• Margins are expected to remain stable, ex of services business.
• Working Capital is under stress, as the payment from central and state government has been delay on account of liquidity
issues. Current working capital is 23.5% of the sales
• Finance cost jumped 33% commensurate with debt levels and phased commencement of Hyderabad Metro. Borrowing cost
at the parent level is 7.5%.
• During the quarter company reported forex gain of Rs100 Cr (part of other expenses)
• Hyderabad Metro: Partial CoD of 30km in November 2017, 16km in September 2018 and 9km in March 2019. Total
commissioning of 57km to date. Management expects to complete the entire commissioning by year-end.
• Final claims are still pending in Development business and management will be in a better position to guide on margin towards
the end of the year.
Fig in Rs Cr
Narnolia Financial Advisors Ltd.
Revenue Mix (In Rs. Bn)
Infrastructure
Power
Heavy Engineering
Defence Engineering
E&A
Hydrocarbon
IT & TS
Financial Services
Develop. Projects
Others
Total
2QFY19
154
11
5
10
15
36
36
31
13
15
306
3QFY19
184
9
7
10
16
38
38
33
12
17
342
4QFY19
271
9
9
11
17
43
38
32
11
14
433
1QFY20
140
6
10
10
14
38
38
35
12
12
296
-5%
-23%
16%
NA
-9%
16%
63%
9%
4%
-21%
6%
QoQ (+/-)
4%
42%
14%
5%
-4%
2%
4%
3%
-15%
-17%
3%
YoY (+/-)
Order Book (In Rs.Bn)
Infrastructure
Power
Heavy Engineering
Defence engineering
E&A
Hydrocarbon
Others
Total
2QFY19
2,182
93
51
121
31
278
56
2,812
3QFY19
2,192
82
48
114
28
318
57
2,840
4QFY19
2,218
70
47
114
26
399
59
2,934
1QFY20
2,187
129
41
112
-
403
68
2,940
2%
123%
-37%
-19%
NA
44%
8%
8%
QoQ (+/-)
4%
21%
1%
-24%
NA
-11%
1%
1%
YoY (+/-)
LT
Order Inflow (In Rs.Bn)
Infrastructure
Hydracarbon
Power
Heavy Engineering
Defence Engineering
E&A
Services
Others
Total
-9%
5299%
-19%
-13%
NA
-25%
23%
-27%
-1%
QoQ (+/-)
9%
-40%
-14%
-14%
NA
-43%
-6%
-35%
-14%
2QFY19
234
25
13
13
16
27
81
12
421
3QFY19
219
1
5
5
16
78
81
17
422
4QFY19
306
10
13
10
19
89
102
16
565
1QFY20
175
67
2
4
-
34
85
20
387
YoY (+/-)
Margin Performance (%)
Infrastructure
Power
Heavy Engineering
Defence engineering
Electrical & Automation
Hydrocarbon
IT & Technology Services
Financial Services
Developmental Projects
Others
70
100
300
1,150
NA
390
(120)
NA
1,310
(2,530)
QoQ (+/-)
(100)
(80)
(140)
260
NA
(40)
150
NA
710
10
2QFY19
6.8
6.0
24.2
25.0
17.8
9.9
24.1
36.6
4.3
23.1
3QFY19
5.4
2.4
20.5
9.0
17.4
8.2
22.2
33.7
4.2
47.2
4QFY19
12.3
4.7
22.8
18.6
20.6
9.8
21.9
31.0
(3.6)
13.9
1QFY20
6.9
4.1
36.1
11.1
13.3
7.0
19.9
37.3
30.4
26.5
YoY (+/-)
2QFY20
168
5
7
10
15
43
59
34
15
16
353
3QFY20
174
7
8
11
14
44
61
36
12
13
362
2QFY20
2,153
152
30
121
-
515
61
3,032
3QFY20
2,236
184
31
92
-
459
61
3,063
2QFY20
184
63
5
5
-
101
106
19
483
3QFY20
200
37
4
4
-
58
100
12
416
2QFY20
7.1
4.2
24.9
17.9
-
12.5
19.5
-
10.2
21.8
3QFY20
6.1
3.4
23.5
20.5
-
12.1
21.0
-
17.3
21.9
Fig in Rs Cr
Fig in Rs Bn
Fig in Rs Bn
Narnolia Financial Advisors Ltd.
Exhibit: Order Book and Book to Bill Exhibit: Order Book Break Up (Q2FY20)
LT
Exhibit: Order Book Mix Exhibit: Order Inflow Mix
Exhibit: EBITDA and EBITDA margin trend Exhibit: PAT and PAT margin trend
Income Statement
Y/E March FY14 FY15 FY16 FY17 FY18 FY19 FY20E*
Revenue from Operation
Change (%)
EBITDA
Change (%)
Margin (%)
Depr & Amor.
EBIT
Int. & other fin. Cost
Other Income
EBT
Exp Item
Tax
Minority Int & P/L share of Ass.
Reported PAT
Adjusted PAT
Change (%)
Margin(%)
92,005
8%
11,336
6%
12.3%
2,623
8,713
2,851
1,007
7,217
(348)
2,253
203
4,765
4,417
-3%
4.8%
101,975
11%
10,465
-8%
10.3%
1,787
8,678
1,655
904
8,022
(94)
2,485
(631)
4,187
4,093
-7%
4.0%
110,011
8%
11,130
6%
10.1%
2,370
8,761
1,339
1,344
8,887
(121)
2,007
49
6,041
5,920
45%
5.4%
119,862
9%
13,571
22%
11.3%
1,929
11,643
1,539
1,412
11,639
(123)
3,199
199
7,370
7,247
22%
6.0%
141,007
18%
16,325
20%
11.6%
2,084
14,241
1,806
1,852
14,581
(295)
4,344
1,290
8,904
8,610
19%
6.1%
148,530
5%
17,985
10%
12.1%
2,319
15,667
2,697
2,067
14,332
94
3,556
1,242
9,977
10,070
17%
6.8%
171,082
15%
21,502
20%
12.6%
2,189
19,313
2,974
2,067
16,339
-
4,117
1,242
10,763
10,763
7%
6.3%
85,128
14%
10,730
9%
12.6%
1,446
9,284
3,138
982
7,483
(355)
2,608
(8)
4,902
4,547
-5%
5.3%
FY21E*
Balance Sheet
Y/E March FY14 FY15 FY16 FY17 FY18 FY19 FY20E
Share Capital
Reserves
Networth
Debt
Other Non Cur Liab
Total Capital Employed
Net Fixed Assets (incl CWIP)
Non Cur Investments
Other Non Cur Asst
Non Curr Assets
Inventory
Debtors
Cash & Bank
Other Curr Assets
Curr Assets
Creditors
Provisons
Other Curr Liab
Curr Liabilities
Net Curr Assets
Total Assets
186
41,022
41,208
68,607
1,479
109,815
24,933
-
48,012
76,785
5,981
22,254
5,109
59,320
92,665
22,057
1,677
33,000
56,734
35,932
171,122
186
43,994
44,180
76,121
1,383
120,301
28,089
-
55,926
87,274
4,854
26,025
5,390
69,604
105,873
27,004
2,304
40,829
70,136
35,737
194,726
187
50,030
50,217
83,875
1,536
134,092
28,576
-
57,592
90,340
4,140
28,689
5,306
82,057
120,192
30,295
2,668
38,532
71,495
48,697
212,182
280
55,377
55,657
92,247
1,583
147,904
30,462
-
74,304
108,815
4,848
34,654
8,033
87,191
134,726
37,795
2,484
48,201
88,479
46,246
245,053
281
62,094
62,375
103,345
1,223
165,719
33,287
-
74,395
112,150
6,414
37,038
11,726
111,798
166,976
42,995
3,037
59,330
105,362
61,614
279,134
281
68,537
68,818
114,507
1,223
183,325
33,125
-
83,063
120,657
6,756
39,014
13,978
115,932
175,681
45,289
3,199
56,473
104,960
70,720
296,338
281
76,071
76,352
124,047
1,223
200,399
32,649
-
95,025
132,143
7,782
44,938
11,612
131,161
195,493
52,165
3,685
63,335
119,185
76,308
327,637
185
37,526
37,712
69,303
4,983
107,015
44,440
-
37,338
83,914
5,527
26,385
4,097
49,239
85,248
20,850
2,927
30,208
53,985
31,263
169,162
Financial Details
Narnolia Financial Advisors Ltd.
FY21E
LT
Fig in Rs Cr
Fig in Rs Cr
*ex. E&A Business
Key Ratio
Y/E March FY14 FY15 FY16 FY17 FY18 FY19 FY20E
ROE
ROCE
Asset Turnover
Debtor Days
Inv Days
Payable Days
Int Coverage
P/E
Price / Book Value
EV/EBITDA
FCF per Share
Div Yield
12%
8%
0.54
88
24
88
3
31
4
17
(82)
1.0%
9%
7%
0.52
93
17
97
5
32
3
19
(91)
1.2%
12%
7%
0.52
95
14
101
7
23
3
19
39
0.9%
13%
8%
0.49
106
15
115
8
24
3
18
(92)
1.1%
14%
9%
0.51
96
17
111
8
22
3
16
(64)
1.1%
14%
9%
0.50
96
17
111
6
19
3
15
(31)
1.3%
14%
10%
0.52
96
17
111
6
17
2
13
(41)
1.4%
13%
9%
0.50
113
24
89
3
18
2
13
(152)
1.5%
FY21E
Cash Flow
Y/E March FY14 FY15 FY16 FY17 FY18 FY19 FY20E
PBT
(inc)/Dec in Working Capital
Non Cash Op Exp
Int Paid (+)
Tax Paid
others
CF from Op. Activities
(inc)/Dec in FA & CWIP
Free Cashflow
(Pur)/Sale of Inv
others
CF from Inv. Activities
inc/(dec) in NW
inc/(dec) in Debt
Int. Paid
Div Paid (inc tax)
others
CF from Fin. Activities
Inc(Dec) in Cash
Add: Opening Balance
Closing Balance
6,870
(900)
2,623
2,851
6,984
(2,149)
(669)
(6,929)
(7,598)
(966)
2,444
(5,463)
99
11,449
3,926
1,603
1,871
7,891
1,759
4,087
5,846
7,729
(2,165)
2,756
3,041
10,232
(1,039)
(3,229)
(5,264)
(8,493)
(124)
1,290
(4,132)
70
11,391
3,678
1,878
1,583
7,488
128
5,846
5,973
8,766
4,346
2,370
1,339
5,744
(1,181)
6,655
(2,977)
3,678
(9,768)
2,745
(9,796)
53
4,880
2,174
2,093
2,059
2,896
(245)
3,790
3,545
11,516
(3,416)
1,929
1,539
16,459
(1,855)
(10,031)
(2,877)
(12,908)
1,810
4,893
3,915
50
12,619
2,471
2,390
1,413
9,370
3,254
3,545
6,799
14,286
(2,392)
2,084
1,806
13,855
(1,688)
(4,717)
(4,283)
(8,999)
(4,242)
(2,497)
(10,999)
11
17,865
2,982
2,647
2,885
15,441
(275)
6,799
6,523
12,873
(5,105)
2,319
2,697
8,668
-
(2,136)
(2,157)
(4,293)
946
-
(1,211)
-
11,163
2,697
2,993
-
5,473
2,126
11,726
13,852
14,880
(15,302)
2,189
2,974
11,962
-
(3,990)
(1,713)
(5,703)
-
-
(1,713)
-
9,540
2,974
3,229
-
3,337
(2,366)
13,978
11,612
7,128
(8,932)
1,446
3,138
6,448
(527)
(7,143)
(6,967)
(14,110)
780
689
(5,510)
144
17,422
3,905
1,418
893
13,136
483
3,604
4,087
Financial Details
Narnolia Financial Advisors Ltd.
FY21E
LT
Fig in Rs Cr
Narnolia Financial Advisors Ltd. is a SEBI registered Research Analyst having SEBI Registration No. INH300006500. The Company/Analyst (s) does/do not have any holding in the stocks discussed but these stocks may have been recommended to clients in the past. Clients of Narnolia Financial Advisors Ltd. may be holding aforesaid stocks.
The stocks recommended are based on our analysis which 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.
Disclosures: Narnolia Financial Advisors Ltd. (NFAL) (FormerlyMicrosec Capital Ltd.) is a SEBI Registered Research Analyst having registration no. INH300006500. NFALis engaged in the business of providing Stock Broking, Depository Participant, Merchant Banking, Portfolio Management & distribution of various financial products. Details of associate entities of NFAL is available on the website at www.narnolia.com
No penalties have been levied on NFAL by any Regulatory/Statutory authority. NFAL, it’s associates, Research Analyst or their relative may have financial interest in the subject company. NFAL and/or its associates and/or Research Analyst may have beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of the Research Report. NFAL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (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.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of NFAL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report. Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. NFAL and/or its associates may have received compensation from the subject company in the past 12 months. In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, NFAL or any of its associates may have: a) managed or co-managed public offering of securities from subject company of this research report, b) received compensation for investment banking or merchant banking or brokerage services from subject company of this research report, c) received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report. d) Subject Company may have been a client of NFAL or its associates during 12 months preceding the date of distribution of the research report. NFAL and it’s associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report. NFAL and / or its affiliates may do and seek to do business including Investment Banking with companies covered in the research reports. As a result, the recipients of this report should be aware that NFAL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific Merchant Banking, Investment Banking or Brokerage service transactions. Research Analyst’s views on Subject Company may vary based on Fundamental research and Technical Research. Proprietary trading desk of NFAL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from NFAL research activity and therefore it can have an independent view with regards to subject company for which Research Team have expressed their views.
Analyst Certification The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Disclosure of Interest Statement-
A graph of daily closing prices of securities is available at www.nseindia.com, www.bseindia.com.
This report has been prepared by Narnolia Financial Advisors Ltd. (NFAL)and is meant for sole use by the recipient and not for public circulation. The report and information contained herein is strictly confidential 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 NFAL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for the clients. 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. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial risk and are not suitable for all investors.Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult his/her/its own advisors to determine the merits and risks of such an investment. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. NFAL will not treat recipients as customers by virtue of their receiving this report. Neither the Company, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits or lost opportunities that may arise from or in connection with the use of the information/report. The person accessing this information specifically agrees to exempt NFAL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold NFAL or any of its affiliates or employees responsible for any such misuse and further agrees to hold NFAL or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays.
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject NFAL & its group companies to registration or licensing requirements within such jurisdictions.
Analyst’s ownership of the stocks mentioned in the Report NIL
