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INDIA
Hero MotoCorp
Buy
17 October 2014
Strong brand franchise helps maintain market share gains QoQ: Dealer
interaction revealed that brand franchise of Splendor and Passion models continued
to be strong (driven by low maintenance and better resale value vs. peers) and
Maestro in the scooter segment was also doing well. This was reflected in the
company’s ability to raise HMCL’s market share in the domestic motorcycle segment
to 52.1% compared to 51.8% in FY14 and 48.8% in 2QFY14.
Valuation & Risks: We continue to like HMCL given its ability to retain market share
and strong presence in the fast growing scooter segment and rural markets. We
retain Buy with TP of Rs3,230 (based on 16x September 2016E EPS). Key downside
risks are 1) Failure of new indigenous products launched by HMCL and 2) Higher
than expected success of Discover models of Bajaj Auto.
Y/E Mar (Rs mn)
2QFY15
2QFY14
YoY (%)
1QFY15
QoQ (%)
2QFY15E
Var (%)
69,153
9,348
13.5
750
49
8,549
1,935
10,484
2,851
7,634
57,262
8,327
14.5
2,869
30
5,428
1,155
6,583
1,769
4,814
20.8
12.3
(102) bps
70,368
9,472
13.5
2,915
30
6,527
1,128
7,655
2,027
5,628
(1.7)
(1.3)
6 bps
69,616
9,482
13.6
915
30
8,537
1,128
9,664
2,559
7,105
(0.7)
(1.4)
(10) bps
(18.1)
Net sales
Operating profit
OPM (%)
Dep.& amortisation
Interest
EBT
Other income
PBT
Provision for tax
PAT (Adj.)
57.5
59.3
58.6
31.0
37.0
35.6
199.7
Previous Target
Rs3,230 Diluted Shares O/S(mn)
199.7
Previous Rating
Buy Mkt Cap (Rsbn/USDbn)
Price Performance (%)*
558.9/9.1
52 Wk H / L (Rs)
3080/1907
3080/1187
1M
6M
1Yr
5 Year H / L (Rs)
HMCL IN
(1.1)
26.1
35.0
Daily Vol. (3M NSE Avg.)
NIFTY
(2.4)
14.8
28.8
481080
*as on 16 October 2014; Source: Bloomberg, Centrum Research
Shareholding pattern (%)*
Sept-14
Jun-14
Mar-14
Dec-13
Promoter
39.9
39.9
39.9
39.9
FIIs
34.3
34.3
30.8
30.6
8.4
7.7
8.0
8.5
17.3
18.1
21.3
21.0
Dom. Inst.
Public & Others
Source: BSE, *as on 16 October 2014
Trend in EBITDA and EBITDA margin
10.0
16
8.0
15
14
6.0
13
4.0
12
EBITDA ( RsBn)
2QFY15
1QFY15
4QFY14
3QFY14
2QFY14
1QFY14
10
4QFY13
11
-
3QFY13
2.0
EBITDA margin ( %, RHS)
Source: Company, Centrum Research
Centrum vs. Bloomberg Consensus*
FY15E
FY16E
Particulars
(Rs mn)
Centrum
BBG
Var(%)
Sales
290,144 285,369
1.7
332,864
324,739
2.5
EBITDA
40,942
39,446
3.8
48,340
47,587
1.6
PAT
30,017
27,741
8.2
37,430
34,204
9.4
BBG
Var(%) Centrum
*as on 19 October2
Bloomberg Consensus*
BUY
SELL
HOLD
Target Price
(Rs)
33
6
20
2,857
Centrum
Target
Price
(Rs)
Variance
(%)
3,230
13.1
*as on 16 October 2014; Source: Bloomberg, Centrum Research Estimates
0.1
71.6
8.5
7.4
Ajay Shethiya, [email protected]; 91 22 4215 9855
Source: Company, Centrum Research
Y/E Mar (Rsmn)
HMCL IN
16% Curr Shares O/S (mn)
2QFY13
HMCL’s cost saving plan continues: In 2QFY14, HMCL announced that it was
looking at savings of Rs15bn by FY17-18E. This plan is on track with the company
achieving savings of Rs600mn in 2QFY15. Further, it indicated that in FY15E, it can
achieve savings of Rs3-3.25bn through this cost saving program. Cost saving
initiatives covered logistics, raw material consolidation and e-bidding. Management
target is to improve margins by 250-300bps by FY17-FY18E. Though this seems a tall
order, it gives us confidence on the sustainability of current margins.
Rs2,799 Bloomberg Code
Upside
1QFY13
Results in-line: HMCL’s operating results were largely in line. Total income for the
quarter was largely in line at Rs69.2bn (up 20.8% but down 1.7% QoQ) compared to
our estimate of Rs69.6bn. EBITDA margin was also largely in line at 13.5% against
estimate of 13.6%. It is encouraging to note that the company has been able to
expand its gross margins on QoQ basis by 75bps despite slightly unfavourable
product mix. Despite in-line operating performance, reported PAT stood at Rs7.6bn,
higher by 7% vs. our estimate of Rs7.1bn due to higher than expected other income
and lower depreciation charge.
Rs3,230 Key Data
CMP*
4QFY12
We retain Buy with a TP of Rs3,230. Operating results were largely in line with
EBITDA margins at 13.5% vs. est. 13.6%. Despite weaker product mix, the company
managed to expand gross margins by 75bps QoQ. Other positives were market
share gains and grant of interim dividend. HMCL’s market share in the domestic
motorcycle segment stood at 52.1% compared to 51.8% in FY14 and 48.8% in
2QFY14. The company also announced an interim dividend of Rs 30/share. Dealer
interaction reveals that brand franchise of Splendor and Passion models continued
to remain strong. Further, HMCL indicated that its ongoing margin transformation
program can improve margins by 250-300bps by FY17-18E.
Target Price
3QFY12
Market share gains continue; retain Buy
2QFY12
Result Update
1QFY12
Automobiles
Revenue
YoY (%)
EBITDA
EBITDA (%)
Adj. PAT
RoE (%)
RoCE (%)
PE (x)
EV/EBITDA (x)
FY13
237,681
0.8
32,845
13.8
21,182
YoY (%) Fully DEPS (Rs)
(10.9)
106.1
45.6
45.8
26.4
15.9
FY14
252,755
6.3
35,401
14.0
21,091
(0.4)
105.6
39.8
39.8
26.5
14.6
FY15E
290,144
14.8
40,942
14.1
30,017
42.3
150.3
49.6
49.6
18.6
12.4
FY16E
332,864
14.7
48,340
14.5
37,430
24.7
187.4
53.1
53.0
14.9
10.3
FY17E
381,402
14.6
55,809
14.6
43,201
15.4
216.3
52.3
52.3
12.9
8.8
Source: Company, Centrum Research Estimates
Centrum Equity Research is available on Bloomberg, Thomson Reuters and FactSet
Valuation and Recommendations
Exhibit 1: Sensitivity Analysis: FY15E
% impact on EBITDA
margin
+20bps
+70bps
% change
Sensitivity to key variables
Sales Volumes
Realization
+1
+1
% impact on EPS
+2.0
+7.0
Source: Company, Centrum Research Estimates
Exhibit 2: Rolling forward EV/EBITDA chart
Exhibit 3: Rolling forward P/E chart
13
12
11
10
9
8
7
6
20
16
12
EV/EBITDA
Mean
P/E
Mean
Mean + Std Dev
Mean - Std Dev
Mean + Std Dev
Mean - Std Dev
Source: Bloomberg, Company, Centrum Research Estimates
Oct-14
Apr-14
Oct-13
Apr-13
Oct-12
Apr-12
Oct-11
Apr-11
Oct-10
Apr-10
Oct-14
Apr-14
Oct-13
Apr-13
Oct-12
Apr-12
Oct-11
Apr-11
Oct-10
Apr-10
8
Source: Bloomberg, Company, Centrum Research Estimates
Exhibit 4: Comparative Valuations
CAGR FY14-FY16E (%)
EBITDA Margin (%)
PE (x)
EV/EBITDA (x)
RoE (%)
Div Yield (%)
Mkt Cap
(Rs bn)
Rev.
EBITDA
PAT
FY14
FY15E
FY16E
FY14
Hero MotoCorp
558.9
14.8
16.9
33.2
14.0
14.1
14.5
26.5
18.6
14.9
14.6
12.4
10.3
39.8
49.6
53.1
2.3
3.2
4.0
Bajaj Auto
683.9
13.5
7.8
11.4
21.8
20.2
19.6
20.5
18.9
16.8
13.6
12.6
11.0
38.1
34.4
32.8
2.1
2.3
2.6
Company
FY15E FY16E
FY14
FY15E FY16E
FY14
FY15E FY16E
FY14
FY15E FY16E
Source: Companies, Centrum Research Estimates
2
Hero MotoCorp
Quarterly financials, Operating Metrics and Key Performance Indicators
Exhibit 5: Quarterly Financials
Y/E March (Rs mn)
3QFY13
4QFY13
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
Net Sales
61,876
61,458
61,595
57,262
68,768
65,130
70,368
69,153
Raw Materials
45,854
44,395
44,556
40,955
49,989
46,798
51,112
49,708
Employee Costs
1,982
2,259
2,215
2,290
2,439
2,357
2,678
2,850
Other Expenditure
6,253
6,306
5,672
5,690
7,360
7,033
7,107
7,248
EBITDA
7,787
8,498
9,152
8,327
8,980
8,942
9,472
9,348
Depreciation
2,832
2,655
2,744
2,869
2,732
2,728
2,915
750
30
31
30
30
30
29
30
49
Interest
Other Income
901
1,045
1,123
1,155
957
1,230
1,128
1,935
5,826
6,857
7,502
6,583
7,174
7,414
7,655
10,484
Tax
947
1,115
2,016
1,769
1,928
1,870
2,027
2,851
Tax rate (%)
16.3
16.3
26.9
26.9
26.9
25.2
26.5
27.2
4,879
5,742
5,486
4,814
5,247
5,544
5,628
7,634
PBT
Reported PAT
YoY Growth (%)
Revenue
2.6
1.8
(1.4)
10.4
11.1
6.0
14.2
20.8
EBITDA
(17.4)
(8.2)
(2.3)
15.8
15.3
5.2
3.5
12.3
PAT
(20.4)
(4.9)
(10.9)
9.3
7.5
(3.4)
2.6
58.6
12.6
13.8
14.9
14.5
13.1
13.7
13.5
13.5
7.9
9.3
8.9
8.4
7.6
8.5
8.0
11.0
15,73,135
15,27,351
15,59,282
14,16,211
1,680,940
15,89,462
17,15,254
16,92,523
Average Realizations (Rs/Vehicle)
39,333
40,238
39,502
40,433
40,910
40,976
41,025
40,858
Raw material costs (Rs/Vehicle)
29,148
29,067
28,575
28,919
29,739
29,443
29,798
29,369
Other Expenditure (Rs/Vehicle)
3,975
4,128
3,638
4,018
4,379
4,425
4,143
4,282
Employee costs (Rs/vehicle)
1,260
1,479
1,421
1,617
1,451
1,483
1,561
1,684
EBITDA (Rs/Vehicle)
4,950
5,564
5,869
5,880
5,342
5,626
5,522
5,523
Margin (%)
EBITDA
PAT
Key Drivers
Total volumes ( in units)
Per Vehicles basis (Rs.)
Source: Company, Centrum Research
Exhibit 6: Key Assumptions
Volumes ( in Units)
Motorcycle
Scooters
Total
YoY Change (%)
Motorcycle
Scooters
Total
FY13
FY14
FY15E
FY16E
FY17E
5,501,247
574,336
6,075,583
5,538,291
707,604
6,245,895
6,185,201
854,382
7,039,583
6,888,924
1,025,259
7,914,183
7,675,678
1,230,311
8,905,989
(4.3)
18.3
(2.6)
0.7
23.2
2.8
11.7
20.7
12.7
11.4
20.0
12.4
11.4
20.0
12.5
Source: Company, Centrum Research
3
Hero MotoCorp
Financials
Exhibit 7: Income Statement
Y/E March (Rs mn)
Sales Volume
% Growth
Net Sales
Raw Materials
% of sales
Personnel
% of sales
Manufact. & Other Exp.
% of sales
EBITDA
EBITDA Margin (%)
Depreciation and
Amortisation
EBIT
Interest Expenses
PBT from operations
Other Income
PBT
Tax-Total
Tax Rate (%) - Total
Reported PAT
Adjusted PAT
Exhibit 9: Balance Sheet
FY13
FY14
FY15E
FY16E
FY17E
6,075,583 6,245,895 7,039,583 7,914,183 8,905,989
(2.6)
2.8
12.7
12.4
12.5
237,681 252,755 290,144 332,864 381,402
175,035
183,288
209,678
240,443
275,987
73.6
72.5
72.3
72.2
72.4
8,209
9,300
10,416
11,666
13,066
3.5
3.7
3.6
3.5
3.4
21,592
24,766
29,107
32,415
36,541
9.1
9.8
10.0
9.7
9.6
32,845
35,401
40,942
48,340
55,809
13.8
14.0
14.1
14.5
14.6
11,418
11,074
5,008
3,308
3,808
21,427
119
21,308
3,984
25,292
4,110
16.3
21,182
21,182
24,327
118
24,209
4,464
28,673
7,582
26.4
21,091
21,091
35,934
94
35,840
4,999
40,840
10,823
26.5
30,017
30,017
45,032
107
44,925
5,999
50,925
13,495
26.5
37,430
37,430
52,001
123
51,878
6,899
58,777
15,576
26.5
43,201
43,201
Source: Company, Centrum Research Estimates
Exhibit 8: Key Ratios
Y/E March
Growth ratios (%)
Net sales & operating other income
EBITDA
Adjusted Nt Profit
Profitability Metrics (%)
EBITDA Margin
EBIT Margin
PAT Margin
Return Ratio (%)
ROE
ROcE
ROIC
Turnover Ratio days (days)
Inventory Period
Debtors Period
Net working capital
Solvency Ratio
Debt-equity (x)
Net Debt-equity (x)
Liquidity ratio (x)
Interest coverage ratio (%)
Dividend
Dividend per share
Dividend Payout (%)
Dividend Yield (%)
Per share (Rs)
Basic ( end point) EPS - reported
Basic ( end point) EPS - adjusted
FDEPS - Reported
FDEPS - Adjusted
CEPS
Book value
Valuation (x)
P/E
P/BV
EV/EBITDA
EV/Sales
Market Cap / Sales
FY13
FY14
FY15E
FY16E
FY17E
0.8
(9.2)
(10.9)
6.3
7.8
(0.4)
14.8
15.7
42.3
14.7
18.1
24.7
14.6
15.4
15.4
13.8
9.1
9.0
14.0
9.7
8.4
14.1
12.5
10.4
14.5
13.6
11.3
14.6
13.7
11.4
45.6
45.8
126.6
39.8
39.8
130.5
49.6
49.6
169.3
53.1
53.0
154.2
52.3
52.3
138.2
9.1
9.5
(21.5)
9.0
12.4
(24.1)
8.0
8.0
(28.5)
8.0
8.0
(30.3)
8.0
8.0
(30.6)
0.0
(76)
0.5
179.9
0.4
(75)
0.5
205.8
0.4
(81)
0.6
383.2
0.3
(80)
0.6
420.5
0.3
(79)
0.6
423.5
60.0
56.6
2.1
65.0
61.5
2.3
90.2
60.0
3.2
112.5
60.0
4.0
129.8
60.0
4.6
106
106
106
106
163
251
106
106
106
106
161
280
150
150
150
150
175
325
187
187
187
187
204
381
216
216
216
216
235
446
26.4
11.2
15.9
2.2
2.4
26.5
10.0
14.6
2.1
2.2
18.6
8.6
12.4
1.8
1.9
14.9
7.3
10.3
1.5
1.7
12.9
6.3
8.8
1.3
1.5
Y/E March (Rs mn)
Sources of Funds
Capital
Reserves & Surplus
Shareholders’ Funds
Def. pay creditsTax Liab.
Secured Loans
Unsecured Loans
Total Loan Funds
Deferred Tax Liabi. - Net
Total
Application of Funds
Gross Block
Accumulated Dep.
Capital WIP
Net Fixed Assets
Investments
Inventories
Sundry Debtors
Cash & Bank Balances
Loans and Advances
Tot. Curr. Assets, Loans & Adv.
Current Liab.
Provisions
Total Current Liab. & Prov.
Net Current Assets
Total assets
FY13
FY14
FY15E
FY16E
FY17E
399
49,663
50,062
3,022
3,022
1,324
54,408
399
55,599
55,999
245
245
(1,060)
55,183
399
64,545
64,945
245
245
(1,060)
64,129
399
75,701
76,100
245
245
(1,060)
75,285
399
88,576
88,975
245
245
(1,060)
88,160
66,851
(36,141)
621
31,331
36,238
6,368
6,650
1,810
14,020
22,480
27,610
14,399
42,008
(19,529)
54,408
69,089
(46,657)
8,541
30,974
40,888
6,696
9,206
1,175
10,976
21,356
28,787
15,943
44,730
(23,373)
55,183
86,089
(51,665)
500
34,925
42,888
6,725
6,725
10,255
12,470
29,450
28,787
21,071
49,858
(20,408)
64,129
98,089
(54,972)
500
43,617
47,888
7,715
7,715
13,025
14,306
35,046
32,706
26,275
58,981
(23,935)
75,285
110,089
(58,780)
500
51,809
52,888
8,840
8,840
17,239
16,392
42,471
37,521
30,326
67,847
(25,377)
88,160
FY13
FY14
FY15E
FY16E
FY17E
25,292
(4,869)
11,418
(3,927)
388
(3,263)
(4,198)
3,498
(1,086)
(8,588)
28,673
(9,966)
11,074
(2,556)
(328)
3,044
1,243
1,545
(66)
2,882
40,840
(10,823)
5,008
2,481
(29)
(1,494)
2,720
5,128
(2,720)
6,085
50,925
(13,495)
3,308
(990)
(990)
(1,836)
3,341
5,203
578
5,307
58,777
(15,576)
3,808
(1,125)
(1,125)
(2,086)
3,796
4,052
1,019
4,531
16,160
29,641
41,110
46,044
51,541
(4,505)
3,404
(10,717)
(4,649)
(8,959)
(2,000)
(12,000)
(5,000)
(12,000)
(5,000)
(17,000)
Source: Company, Centrum Research Estimates
Exhibit 10: Cash Flow
Y/E March (Rs mn)
Pre-tax profit
Total tax paid
Depreciation
Chg in debtors
Chg in inventory
Chg in loans & advances
Chg in creditors
Chg in provisions
Chg in other current liabilities
Net chg in working capital
Cash flow from operating
activities (a)
Capital expenditure
Chg in marketable securities
Cash flow from investing
activities (b)
Dividend (incl. tax)
Cash flow from financing
activities (c)
Net chg in cash (a+b+c)
(1,100)
(15,366)
(10,959)
(17,000)
(14,018)
(15,186)
(21,071)
(26,275)
(30,326)
(14,018)
(14,941)
(21,071)
(26,275)
(30,326)
1,042
(667)
9,080
2,770
4,214
Source: Company, Centrum Research Estimates
Source: Company, Centrum Research Estimates
4
Hero MotoCorp
Appendix A
Disclaimer
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should be aware that any or all of the foregoing, among other things, may give rise to or potential conflicts of interest. We and our Group may rely on
information barriers, such as "Chinese Walls" to control the flow of information contained in one or more areas within us, or other areas, units, groups or
affiliates of Centrum. Centrum or its affiliates do not make a market in the security of the company for which this report or any report was written.
Further, Centrum or its affiliates did not make a market in the subject company’s securities at the time that the research report was published.
This report is for information purposes only and this document/material should not be construed as an offer to sell or the solicitation of an offer to buy,
purchase or subscribe to any securities, and neither this document nor anything contained herein shall form the basis of or be relied upon in connection
with any contract or commitment whatsoever. This document does not solicit any action based on the material contained herein. It is for the general
information of the clients of Centrum. Though disseminated to clients simultaneously, not all clients may receive this report at the same time. Centrum
will not treat recipients as clients by virtue of their receiving this report. It does not constitute a personal recommendation or take into account the
particular investment objectives, financial situations, or needs of individual clients. Similarly, this document does not have regard to the specific
investment objectives, financial situation/circumstances and the particular needs of any specific person who may receive this document. The securities
discussed in this report may not be suitable for all investors. The securities described herein may not be eligible for sale in all jurisdictions or to all
categories of investors. The countries in which the companies mentioned in this report are organized may have restrictions on investments, voting rights
or dealings in securities by nationals of other countries. The appropriateness of a particular investment or strategy will depend on an investor's
individual circumstances and objectives. Persons who may receive this document should consider and independently evaluate whether it is suitable for
his/ her/their particular circumstances and, if necessary, seek professional/financial advice. Any such person shall be responsible for conducting
his/her/their own investigation and analysis of the information contained or referred to in this document and of evaluating the merits and risks involved
in the securities forming the subject matter of this document.
The projections and forecasts described in this report were based upon a number of estimates and assumptions and are inherently subject to significant
uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates
on which the projections and forecasts were based will not materialize or will vary significantly from actual results, and such variances will likely increase
over time. All projections and forecasts described in this report have been prepared solely by the authors of this report independently of the Company.
These projections and forecasts were not prepared with a view toward compliance with published guidelines or generally accepted accounting
principles. No independent accountants have expressed an opinion or any other form of assurance on these projections or forecasts. You should not
regard the inclusion of the projections and forecasts described herein as a representation or warranty by or on behalf of the Company, Centrum, the
authors of this report or any other person that these projections or forecasts or their underlying assumptions will be achieved. For these reasons, you
should only consider the projections and forecasts described in this report after carefully evaluating all of the information in this report, including the
assumptions underlying such projections and forecasts.
The price and value of the investments referred to in this document/material and the income from them may go down as well as up, and investors may
realize losses on any investments. Past performance is not a guide for future performance. Future returns are not guaranteed and a loss of original capital
may occur. 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. Centrum does not provide tax advice to its clients, and all investors are strongly advised to consult regarding any potential
investment. Centrum and its affiliates accept no liabilities for any loss or damage of any kind arising out of the use of this report. Foreign currencies
denominated securities are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of or income derived from
the investment. In addition, investors in securities such as ADRs, the value of which are influenced by foreign currencies effectively assume currency risk.
Certain transactions including those involving futures, options, and other derivatives as well as non-investment-grade securities give rise to substantial
risk and are not suitable for all investors. Please ensure that you have read and understood the current risk disclosure documents before entering into any
derivative transactions.
This report/document has been prepared by Centrum, based upon information available to the public and sources, believed to be reliable. No
representation or warranty, express or implied is made that it is accurate or complete. Centrum has reviewed the report and, in so far as it includes
current or historical information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The opinions expressed in
this document/material are subject to change without notice and have no obligation to tell you when opinions or information in this report change.
This report or recommendations or information contained herein do/does not constitute or purport to constitute investment advice in publicly accessible
media and should not be reproduced, transmitted or published by the recipient. The report is for the use and consumption of the recipient only. This
publication may not be distributed to the public used by the public media without the express written consent of Centrum. This report or any portion
hereof may not be printed, sold or distributed without the written consent of Centrum.
The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform
themselves about, and observe, any such restrictions. Neither Centrum nor 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 that may arise from or in connection with
the use of the information.
This document does not constitute an offer or invitation to subscribe for or purchase or deal in any securities and neither this document nor anything
contained herein shall form the basis of any contract or commitment whatsoever. This document is strictly confidential and is being furnished to you
solely for your information, may not be distributed to the press or other media and may not be reproduced or redistributed to any other person. The
distribution of this report in other jurisdictions may be restricted by law and persons into whose possession this report comes should inform themselves
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Hero MotoCorp
about, and observe any such restrictions. By accepting this report, you agree to be bound by the fore going limitations. No representation is made that
this report is accurate or complete.
The opinions and projections expressed herein are entirely those of the author and are given as part of the normal research activity of Centrum Broking
and are given as of this date and are subject to change without notice. Any opinion estimate or projection herein constitutes a view as of the date of this
report and there can be no assurance that future results or events will be consistent with any such opinions, estimate or projection.
This document has not been prepared by or in conjunction with or on behalf of or at the instigation of, or by arrangement with the company or any of its
directors or any other person. Information in this document must not be relied upon as having been authorized or approved by the company or its
directors or any other person. Any opinions and projections contained herein are entirely those of the authors. None of the company or its directors or
any other person accepts any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection
therewith.
Centrum and its affiliates have not managed or co-managed a public offering for the subject company in the preceding twelve months. Centrum and
affiliates have not received compensation from the companies mentioned in the report during the period preceding twelve months from the date of this
report for service in respect of public offerings, corporate finance, debt restructuring, investment banking or other advisory services in a
merger/acquisition or some other sort of specific transaction.
As per the declarations given by them, Mr. Ajay Shethiya, research analyst and and/or any of his family members do not serve as an officer, director or any
way connected to the company/companies mentioned in this report. Further, as declared by him, he has not received any compensation from the above
companies in the preceding twelve months. He does not hold any shares by him or through his relatives or in case if holds the shares then will not to do
any transactions in the said scrip for 30 days from the date of release such report. Our entire research professionals are our employees and are paid a
salary. They do not have any other material conflict of interest of the research analyst or member of which the research analyst knows of has reason to
know at the time of publication of the research report or at the time of the public appearance.
While we would endeavour to update the information herein on a reasonable basis, Centrum, its associated companies, their directors and employees are
under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent Centrum
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 Centrum policies, in circumstances where Centrum is acting in an advisory capacity to this company, or any certain other
circumstances.
This report is not directed to, 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 or regulation or which would subject
Centrum Broking Limited or its group companies to any registration or licensing requirement within such jurisdiction. Specifically, this document does
not constitute an offer to or solicitation to any U.S. person for the purchase or sale of any financial instrument or as an official confirmation of any
transaction to any U.S. person unless otherwise stated, this message should not be construed as official confirmation of any transaction. No part of this
document may be distributed in Canada or used by private customers in United Kingdom.
The information contained herein is not intended for publication or distribution or circulation in any manner whatsoever and any unauthorized reading,
dissemination, distribution or copying of this communication is prohibited unless otherwise expressly authorized. Please ensure that you have read “Risk
Disclosure Document for Capital Market and Derivatives Segments” as prescribed by Securities and Exchange Board of India before investing in Indian
Securities Market.
Rating Criteria
Rating
Buy
Hold
Sell
Market cap < Rs20bn
Upside > 25%
Upside between -25% to +25%
Downside > 25%
Market cap > Rs20bn but < 100bn
Upside > 20%
Upside between -20% to +20%
Downside > 20%
Market cap > Rs100bn
Upside > 15%
Upside between -15% to +15%
Downside > 15%
Member (NSE, BSE, MCX-SX), Depository Participant (CDSL) and SEBI registered Portfolio Manager
Registration Nos.
CAPITAL MARKET SEBI REGN. NO.: BSE: INB011454239, NSE: INB231454233
DERIVATIVES SEBI REGN. NO.: NSE: INF231454233 (TRADING & SELF CLEARING MEMBER)
CDSL DP ID: 12200. SEBI REGISTRATION NO.: IN-DP-CDSL-661-2012
PMS REGISTRATION NO.: INP000004383
MCX – SX (Currency Derivative segment) REGN. NO.: INE261454230
Website: www.centrum.co.in
Investor Grievance Email ID: [email protected]
Compliance Officer Details:
Tel: (022) 4215 9413; Email ID: [email protected]
Centrum Broking Limited
Registered Office Address
Bombay Mutual Building ,
Correspondence Address
Centrum House
2nd Floor,
Dr. D. N. Road,
Fort, Mumbai - 400 001
6th Floor, CST Road, Near Vidya Nagari Marg, Kalina,
Santacruz (E), Mumbai 400 098.
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Tel: (022) 4215 9000
Hero MotoCorp