S tock TALES - ICICI Directcontent.icicidirect.com/mailimages/IDirect_Hexaware... · 2019. 9....

Stock Tales are concise, holistic stock reports across wider spectrum of sectors. Updates will not be periodical but based on significant events or change in price.

Stock_____

TALES

September 25, 2019

ICIC

I S

ecurit

ies –

Retail E

quit

y R

esearch

Stock T

ale

s

September 25, 2019

CMP: | 389 Target: | 440 (13%) Target Period: 12 months

Hexaware Technologies (HEXTEC)

HOLD

Automation, cloud key growth drivers…

Hexaware is a provider of IT & BPO services with a major presence in

banking & financial services (42.8% of topline) followed by healthcare &

insurance (17.8%), manufacturing & consumer (15.3%) and travel & tourism

(11.1%). The company has a strategy of: i) Automate Everything, ii) Cloudify

Everything and iii) Transform Customer Experience. Hexaware believes this

strategy is highly differentiated and sets the stage for growth in the long

term. Based on its strategy, it has been able to grow its rupee revenue, PAT

at a CAGR of 14.7%, 18.3%, respectively, in CY16-18.

Healthy double digit organic growth over next few years

In the age of disruption, the company’s strategy of automating process is

helping its clients in not only saving cost but also improving customer

experience. In addition, migration to cloud is aiding its clients in gaining

scalability, flexibility and agility and have a better IT infrastructure. The

company’s lower presence in legacy infrastructure services coupled with

disrupting strategies is driving double digit revenue growth over the past

few years. Going forward, we expect this trend of double digit growth in

revenues to continue in coming years driven by its differentiated strategy.

Further, considering healthy deal wins in the past two quarters (~US$72

million) coupled with improving client win rate and client mining, we expect

it to register organic revenue growth of 13% in CY19E. Further, the

acquisition of Mobiquity will boost revenue growth to 19.5% YoY in CY19E.

Along with strong client relationships and execution capabilities, we expect

dollar revenues to increase at a CAGR of 17% in CY18-20E.

Offshoring, currency & operational efficiency to drive margins

Attrition remains a key concern for the company, which will have a bearing

on its utilisation and margins. However, the company is trying to maintain

its utilisation at optimum levels and curb attrition to keep revenue, margin

momentum intact. In addition, higher offshoring (due to drawdown in its top

client), lower subcontracting cost, higher organic growth and currency

tailwind would boost margins (~50 bps improvement in CY18-20E).

Valuation & Outlook

Hexaware is expected to register organic growth of 13.0% in CY19E, which

is industry leading growth. In addition, we expect higher offshoring (due to

drawdown in its top client), lower subcontracting cost, higher organic

growth and currency tailwind to boost margins. Consequently, the company

is expected to register rupee revenue and PAT CAGR of 19.9% and 16.9%

over CY18-20E, respectively. Considering the robust growth, we have a

HOLD rating on Hexaware and assign a P/E multiple of ~16x (PEG of 0.9)

leading to a target price of | 440/share.

Key Financial Summary s

(| Crore) CY16 CY17 CY18 CY19E CY20E CAGR (CY18-20E)

Net Sales 3,534.9 3,942.0 4,647.8 5,730.1 6,677.2 19.9%

EBITDA 574.7 655.2 733.8 920.5 1,089.8 21.9%

EBITDA Margins (%) 16.3 16.6 15.8 16.1 16.3

Net Profit 417.1 499.5 583.5 701.9 798.0 16.9%

EPS (|) 13.7 16.6 19.3 23.2 26.4

P/E (x) 28.1 23.2 19.8 16.5 14.5

RoE (%) 24.4 24.9 24.4 24.2 23.4

RoCE (%) 31.7 31.6 30.0 29.2 28.2

Source: Company, ICICI Direct Research

Particulars

Particular Amount

Market Capitalisation | 11754

Total Debt | 0 crore

Cash and Investments | 831 crore

EV | 10923 crore

52 week H/L 460 / 294

Equity Capital | 59 crore

Face Value | 2

Price Performance

Key Highlights

Healthy deal wins, improving client

wins, client mining, Mobiquity

acquisition to boost revenues in

CY18-20E

Expect margins to see improved

trajectory with presence of several

tailwinds

Research Analyst

Devang Bhatt

[email protected]

Deepti Tayal

[email protected]

2,000

7,000

12,000

17,000

0

200

400

600

Sep-

19

Jan-

19

Jun-

18

Oct-

17

Mar-

17

Aug-

16 Price (R.H.S) Nifty (L.H.S)

ICICI Securities | Retail Research 2

ICICI Direct Research

Stock Tales | Hexaware Technologies

Company Background

Hexaware is a provider of IT & BPO services with a major presence in

banking & financial services (42.8% of topline) followed by healthcare &

insurance (17.8%), manufacturing & consumer (15.3%) and travel & tourism

(11.1%).

Exhibit 1: Vertical wise split

Vertical split (in %) CY15 CY16 CY17 CY18

Banking and FinancialServices 37.3 40.8 43.5 42.8

Travel & Transportation 16.8 14.3 13.0 11.1

Healthcare & Insurance 16.3 16.7 16.2 17.8

Manufacturing & Consumer 29.6 28.2 13.6 15.3

Professional Services 0.0 0.0 13.7 13.0

Total 100.0 100.0 100.0 100.0


In geographical terms, major revenue contributor is Americas (76.7%)

followed by Europe (12.9%), Asia Pacific (10.4%).

Exhibit 2: Geography wise split

Geography concentration (in

%)

CY15 CY16 CY17 CY18

Americas 80.4 81.7 79.8 76.7

Europe 13 11.8 11.4 12.9

Asia Pacific 6.6 6.5 8.8 10.4

Total 100.0 100.0 100.0 100.0


From a service wise perspective, a majority of the company’s revenue is

from Application (35.9% of topline) followed by Digital Assurance (18.1% of

topline) and Infrastructure Management Services (IMS) (~15% of topline).

Exhibit 3: Service line break-up

Service wise split (in %) CY15 CY16 CY17 CY18

Application Development & Maintenance (ADM) 37.7 36.6 36.5 35.9

Enterprise Solutions 14.7 13.2 11.4 10.1

QATS /Digital Assurance 20.8 20.4 20.0 18.1

Business Intelligence & Analytics 14.8 15 13.8 13.8

Business Process Services (BPS) 5.4 6.5 7.0 7.2

Infrastructure Management Services (IMS) 6.6 8.3 11.3 14.9

Total 100.0 100.0 100.0 100.0


The company has a strategy of: i) Automate Everything, ii) Cloudify

Everything and iii) Transform Customer Experience. Hexaware believes this

strategy is highly differentiated and sets the stage for growth in the long

term. Based on its strategy, it has been able to grow its revenue, PAT at a

CAGR of 14.7%, 18.3%, respectively, in CY16-18.




Investment Rationale

New deal wins, client mining and automation to drive revenues

Under the strategy of Automate Everything and Cloudify Everything,

Hexaware helps its clients to automate its processes and migrate to cloud.

In the age of disruption, the company’s strategy of automating process is

helping its clients in not only saving cost but also improving customer

experience. In addition, migration to cloud is aiding its clients in gaining

scalability, flexibility and agility and have a better IT infrastructure. The

company’s lower presence in legacy infrastructure services coupled with

disrupting strategies is driving double digit revenue growth over the past

few years. This strategy works across verticals but has been particularly

beneficial for infrastructure management services (IMS) and business

process services (BPS). These verticals have grown at a CAGR of 52.1% and

19.5%, respectively, in CY16-18 and contributed ~48% of incremental

revenues during the same period. Further, the company has targeted

geographies that are less penetrated by peers, for example Asia Pacific

(Singapore, Hong Kong & Australia), which witnessed CAGR of 43.6% in

CY16-18. This strategy has enabled the company to grow at a CAGR of

14.7% in CY16-18. Going forward, we expect this trend of double digit

growth in revenues to continue over the coming years driven by its

differentiated strategy. Further, considering healthy deal wins in the past two

quarters (~US$72 million) coupled with improving client win rate and client

mining, we expect it to register organic revenue growth of 13% in CY19E.

This organic growth is after considering client specific issues in its top client

in the banking segment. Further, the acquisition of Mobiquity will boost

dollar revenue growth to 19.5% YoY in CY19E. Along with strong client

relationships and execution capabilities, we expect dollar revenues to

increase at a CAGR of 19.9% over CY18-20E.

Cost efficiency to drive margins

The company has been witnessing higher attrition over the past few quarters

due to a tightening of the labour market in the US, which has impacted its

revenues and margins. Attrition remains a key concern for the company,

which will have a bearing on its utilisation and margins. However, the

company is trying to maintain its utilisation at optimum level and curb

attrition to keep revenue and margin momentum intact. In addition, higher

offshoring (due to drawdown in its top client), lower subcontracting cost,

higher organic growth and currency tailwind would boost margins. Hence,

we expect margins to improve ~50 bps to 16.3% over CY18-20E.

Mobiquity acquisition a long term value driver

Hexaware acquired Mobiquity for US$182 million (~| 1274 crore).

Mobiquity had a revenue of US$70 million (~| 490 crore). This leads to a

valuation of EV/sales of 2.6x. The EBITDA margins are in low teens with zero

debt. Their top-20 customers account for 90% of revenue. Mobiquity is an

independent customer experience consulting firms that specialises in multi-

channel digital experiences using cloud technologies. The company

provides next-gen user interfaces, such as smart speakers and digital

assistants. Hexaware’s key customers are Amazon Web Services,

Rabobank, Philips, Wawa, Backbase and Otsuka. This acquisition

strengthens Hexaware’s two strategic offerings Cloudify Everything and

Transform Customer Experience. The company is seeing strong demand for

these capabilities. With this acquisition, Hexaware will be able to further

accelerate its contribution to their customers’ business growth. As on

Q2CY20, the company is witnessing large number of joint pipelines (that are

in early stages). There could be one or two transactions that could fructify.

We believe this acquisition will be a key growth driver for Hexaware in

coming years. However, in the near term, the acquisition will lead to lower

dividend payout, moderation of RoE & RoCE as Mobiquity has lower margins

compared to the company’s average.

CY19E expected to register 19.5% YoY growth in

dollar revenues

IMS and BPO have grown at a CAGR of 52.1% and

19.5%, respectively, in CY16-18 and contributed

~48% of incremental revenues in the same period

Mobiquity has marquee clients like Amazon Web

Services, Rabobank, Philipa, Wawa, Backbase and

Otsuka




Exhibit 4: Revenue, EBITDA margin vertical wise

Revenues (in | crore) CY15 CY16 CY17 CY18

Travel and Transport 524.0 506.5 514.2 515.7

BFS 1166.1 1441.4 1713.2 1986.9

Healthcare and Insurance 509.6 592.0 637.1 829.7

Professional services 0.0 0.0 542.1 604.0

Manufacturing and Consumer 923.8 995.0 535.4 711.5

Total 3123.5 3534.9 3942.0 4647.8

YoY growth 13.2% 11.5% 17.9%

EBITDA margins (in %) CY15 CY16 CY17 CY18

Travel and Transport 18.6 17.1 26.6 22.2

BFS 12.2 11.3 12.4 13.3

Healthcare and Insurance 21.1 21.5 18.9 16.6

Professional services 0.0 0.0 11.7 13.5

Manufacturing and Consumer 20.4 19.9 22.6 19.1

Overall EBITDA margins (%) 17.2 16.3 16.6 15.8


Exhibit 5: Revenue trend


Exhibit 6: EBITDA margin trend


3534.9

3942.0

4647.8

5730.1

6677.2

500.0

2000.0

3500.0

5000.0

6500.0

8000.0

CY16 CY17 CY18 CY19E CY20E

| crore

Revenue

16.3

16.6

15.8

16.1

16.3

15.3

15.6

15.9

16.2

16.5

16.8

CY16 CY17 CY18 CY19E CY20E

(%)

EBITDA margin




Analyst meet highlights

• Three pillars for long term growth: In his initial remarks, CEO R

Srikrishna said the three pillars for long term performance are

defined by culture, strategy and team. 1) Culture - Culture of

automation first with no fear of cannibalisation, focus on cross

skilling, bottom up innovation with client centric focus; 2) Strategy -

composition of automate everything, Cloudify everything and

transform customer experience and 3) Team - experienced

leadership team with segments expertise and strong track record

• Revenue viewpoint: Hexaware delivered strong organic growth of

12.5% CAGR over CY14-18 in dollar revenue. The company sounded

optimistic about maintaining similar organic growth rates with

acquisitions adding another ~2-3% to growth expectations.

Hexaware had capabilities of automation, cloud transformation

while Mobiquity acquisition helped Hexaware up its capability in

customer experience. Additionally, partnerships with vendors like

Pega, MS Dynamics and addition of ex-Capgemini Sandeep Dhar to

leadership team in customer experience would be positive

• Segments outlook: Among verticals, growth will be led by

manufacturing & consumer and professional services. Growth will

be weak in banking & financial services in the next two quarters

mainly on account of client specific concern though it is expected to

improve by the end of Q4CY19. Among service lines, IMS and BPO

are expected to continue their strong growth momentum while

enterprise solutions weak growth trajectory is anticipated to

improve only gradually based on the order book visibility

• Banking & financial services (BFS): Hexaware has a presence in buy

side, sell side and retail & corporate banking markets with full service

offerings on the buy side. Among verticals, BFS forms the major

proportion of revenues (42.8% of revenues in CY18) and has grown

at a healthy 16.3% CAGR in CY16-18 and 19% in CY14-18. However,

challenges in top clients in the segment and softness in capital

markets have resulted in tapering of growth in first half of CY19. This

would continue to impact in the next two quarters while it is

expected to bottom out by Q4 end. Further, slowdown in client

decision making, long gestation for deal closures and transitions

added pressure. Going ahead, the management expects growth in

CY20E mainly driven by new client acquisitions, healthy deal

pipeline, growth recovery in most accounts and renegotiation of

contracts due to Libor sunset

• Healthcare & Insurance (H&I): The segment has grown at the fastest

pace among verticals and reported growth of 17.2% CAGR during

CY16-18 and 15% during CY14-18. This was on the back of various

initiatives as new leadership team, partnership with Guidewire and

cloud transformation for insurance majors. Citing segment outlook,

the management indicated at focusing on enhancing partnership

offerings with Guidewire, expanding commercial & specialty

insurance and automation

Professional services: This segment (13% of topline) had suffered in

terms of revenue growth from H1CY17 mainly due to ramp down in

its large client. However, repositioning at large client, adoption of

managed services, Agile models and new client wins outside large

clients helped the company to improve its revenue share, which had

dropped to 12.3% of revenues in H1CY18 to 14.4% of topline in

H1CY19. This segment is now on growth trajectory and is expected




to sustain growth in coming quarters. In order to sustain growth, the

company has highlighted the following strategy 1) maximising

revenue from existing accounts, 2) expansion of client base and

delivery centres and 3) new solution and partnership across sub-

verticals

Exhibit 7: Turnaround of professional services segment


Infrastructure Management Services: IMS (~15% of topline) has

grown at 45% CAGR in CY15-18 mainly led by automation and

managed services deals. In the next few years, the company aims to

grow its IMS at 30% CAGR mainly led by non-linear growth, more

platform oriented approach and more platform centric digital

operations. This coupled with opportunity to gain market share is

expected to drive IMS revenues. The company believes that 32%

clients are likely to change its providers while 17% are likely to

automate/insource. In both these cases, the company may play the

role of disrupter to gain market share from incumbents. Further, the

company believes that automation and productivity gains has led to

smaller deal sizes, which, we believe, is favourable for mid-size

companies like Hexaware

Business Process Services: The BPO services was at a disadvantage

for the company due to absence of scale and risk perceptions

among customers. However, despite this the company has been

able to grow this business by 30% CAGR in CY14-18. Going forward,

the company is confident of growth in this segment due to its

reasonable scale, gaining market share from incumbents (led by

automation), development of domain specific automation

competency on scale platforms like Guidewire, SAP and Oracle and

increase penetration in BFS & ecommerce companies. The company

also plans to foray into new scalable services like customer

experience, digital content management and translation services

Enterprise Solution: This segment (10.1% of topline) performance

was impacted due to higher presence in legacy technology

(PeopleSoft was major portion of portfolio). However, the company

is trying to turn around this segment by 1) partnering with new age

technology providers like Workday, Pega and Appian, 2) Hiring new

talent & leadership (induction of lateral and senior talent across the

spectrum of services – BPM, WD, SAP leaders; and other senior

industry talent), 3) Significant recognition across multiple analysts

and product lines, 4) Widening the market reach - EU & APAC

geography and 5) New customer acquisition leveraging mindshare




and strong market position. We believe this will drive Enterprise

Solution over the coming years

On Baring PE and merger with NIIT Tech: The company denied any

merger with NIIT Tech due to absence of synergies and different life

cycle of PE funds associated with both companies. The company

has said it believes Baring PE fund is not looking for exit for at least

the next two years. Further, it believes that the holding of Baring PE

will not go below 51% in the near term

Client relationships: As per Whitelane Survey, Hexaware has been

rated as the top outsourcing service provider for four years in a row.

The glimpse of this is visible from the fact that number of clients in

US$1 million+ pocket has increased from 61 in CY14 to 99 in CY18

(and 120 in the recent quarter of Q2CY19)

Client concentration risk: The company said that client

concentration is restricting its organic growth to grow above 12% in

the near term. However, the company is working on the issue and

will diversify the risk in long term. The company’s top 10 clients

account for ~52% of topline

Presence in Europe: The company has a presence in the UK,

Belgium, Germany, Nordics and through Mobiquity acquisition the

company has presence in Netherlands. Hexaware plans to stay in

the current geographies in Europe. The company will leverage to

Mobiquity presence in Europe to grow. It believes healthcare &

insurance would gain traction in Europe

Key risk: High concentration of clients in top buckets (top five

constitutes 42% and top 10 constitutes 52% of revenue), higher

contribution from BFS client and unexpected exit by Baring PE could

act as risks




Financial Summary

Exhibit 8: Profit and loss statement | crore

(Year-end March) CY17 CY18 CY19E CY20E

Total operating Income 3,942 4,648 5,730 6,677

Growth (%) 11.5 17.9 23.3 16.5

COGS (employee expenses) 2,169 2,480 3,085 3,591

S,G&A expenses 1,118 1,434 1,725 1,996

Total Operating Expenditure 3,287 3,914 4,810 5,587

EBITDA 655 734 920 1,090

Growth (%) 14.0 12.0 25.4 18.4

Depreciation 63 65 76 126

Other Income less interest 49 58 12 9

PBT 641 727 856 973

Total Tax 141 143 154 175

Minority Interest 0 0 0 0

Exceptional Item 0 0 0 0

PAT before exceptional item 500 583 702 798

Growth (%) 19.8 16.8 20.3 13.7

Reported EPS (|) 16.8 19.7 23.6 26.8

PAT after exceptional item 500 583 702 798

Adjusted EPS (|) 16.6 19.3 23.2 26.4


Exhibit 9: Cash flow statement | crore


Profit before Tax 641 727 856 973

Add: Depreciation 63 65 76 126

(Inc)/dec in Current Assets (127) (305) (350) (306)

Inc/(dec) in CL and Provisions 37 204 244 151

Taxes paid (175) (143) (154) (175)

CF from operations 476 605 687 782

(Inc)/dec in Investments 2 (49) (4) (13)

(Inc)/dec in Fixed Assets (95) (66) (1,059) (494)

Others

CF from investing (94) (115) (1,064) (506)

Inc/(dec) in loan funds 0 0 0 0

Dividend paid & dividend tax (143) (251) (197) (279)

Others (137) 52 0 0

CF from financing (280) (199) (197) (279)

Net Cash flow 103 291 (573) (3)

Exchange difference (1) (0) 15 0

Opening Cash 413 515 805 247

Closing Cash 515 805 247 244


Exhibit 10: Balance sheet | crore


Liabilities

Equity Capital 59 59 59 59

Reserve and Surplus 1,948 2,332 2,838 3,356

Share Premium

Total Shareholders funds 2,007 2,392 2,897 3,416

Total debt 0 0 0 0

Other liabilities & Provisions 21 31 40 47

Total Liabilities 2,028 2,422 2,937 3,463

Assets

Net assets & CWIP 632 618 611 979

Goodwill 166 181 1,170 1,170

Other non current assets 294 348 428 499

Debtors 773 1,076 1,327 1,546

Other financial assets 71 20 25 29

Other Current Assets 61 60 74 86

Current Investments 19 10 0 0

Cash 515 805 247 244

Bank Balance 15 15 0 0

Trade Payable 220 330 407 474

OCL & Provisions 297 381 539 616

Application of Funds 2,028 2,422 2,937 3,463


Exhibit 11: Key ratios


Per share data (|)

Adjusted EPS (Diluted) 16.6 19.3 23.2 26.4

BV per share 67.5 80.6 97.2 114.6

DPS 4.8 8.4 6.6 9.4

Cash Per Share 17.8 27.6 8.3 8.2

Operating Ratios (%)

EBIT margins 15.0 14.4 14.7 14.4

PBT Margins 16.3 15.6 14.9 14.6

PAT Margin 12.7 12.6 12.2 12.0

Debtor days 50 63 63 63

Creditor days 20 26 26 26

Return Ratios (%)

RoE 24.9 24.4 24.2 23.4

RoCE 31.6 30.0 29.2 28.2

RoIC 48.4 48.9 33.6 29.9

Valuation Ratios (x)

P/E 23.2 19.8 16.5 14.5

EV / Net Sales 2.8 2.4 2.0 1.7

Market Cap / Sales 3.0 2.5 2.1 1.8

Solvency Ratios

Debt / EBITDA 0.0 0.0 0.0 0.0

Debt / Equity 0.0 0.0 0.0 0.0

Current Ratio 1.8 1.6 1.5 1.5

Quick Ratio 1.3 1.2 1.2 1.2





RATING RATIONALE

ICICI Direct endeavors to provide objective opinions and recommendations. ICICI Direct assigns ratings to its

stocks according to their notional target price vs. current market price and then categorizes them as Buy, Hold,

Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined

as the analysts' valuation for a stock

Buy: >15%

Hold: -5% to 15%;

Reduce: -15% to -5%;

Sell: <-15%

Pankaj Pandey Head – Research [email protected]

ICICI Direct Research Desk,

ICICI Securities Limited,

1st Floor, Akruti Trade Centre,

Road No 7, MIDC,

Andheri (East)

Mumbai – 400 093

[email protected]




ANALYST CERTIFICATION

I/We, Devang Bhatt, PGDBM, Deepti Tayal, MBA, 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. It is also confirmed that above mentioned

Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months and do not serve as an officer, director or employee of the companies mentioned in the 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 Limited Sebi Registration is INZ000183631 for stock broker. ICICI Securities is a 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.

Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding positions, trading volume etc as opposed to focusing on a company's fundamentals and, as

such, may not match with the recommendation in fundamental reports. Investors may visit icicidirect.com to view the Fundamental and Technical Research Reports.

Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.

ICICI Securities Limited has two independent equity research groups: Institutional Research and Retail Research. This report has been prepared by the Retail Research. The views and opinions expressed in this document may or may

not match or may be contrary with the views, estimates, rating, target price of the Institutional Research.

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 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.

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.

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.

Date post:	17-Oct-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

S tock TALES - ICICI Directcontent.icicidirect.com/mailimages/IDirect_Hexaware... · 2019. 9....

Documents