RESULTS REVIEW 3QFY17 10 FEB 2017

Hero MotoCorp
BUY
INDUSTRY AUTOS Play on rural recovery
CMP (as on 09 Feb 2017) Rs 3,265 Hero Motocorps (HMCL) 3QFY17 EBITDA at Rs Highlights of the quarter
10.8bn (-4.5% YoY) was above estimates, led by
Target Price Rs 3,704 lower RM costs (control on vendor pricing) and leap Steady market share: HMCLs motorcycle market
Nifty 8,778 programme benefit. This, along with lower other share in 3Q increased sequentially to 50.5% (+70bps
Sensex 28,330 expenses (-8% YoY, -12% QoQ) resulted in a 131bps YoY), driven by strong volumes of CD Dawn,
KEY STOCK DATA YoY rise in EBITDA margin to 17%. APAT at Rs 7.7bn Splendor Plus and Achiever. In the scooter segment,
(-2.7% YoY) was above estimates, led by higher other market share remained stable at 14.2%. Currently,
Bloomberg HMCL IN
income. HMCLs dealer inventory stands at 6-7 weeks, slightly
No. of Shares (mn) 200
above the normal level of 5-5.5 weeks.
MCap (Rs bn) / ($ mn) 652 / 9,738 We anticipate a gradual 2W volume recovery in
6m avg traded value (Rs mn) 1,425 4QFY17, once the impact of demonetisation ebbs. Bleak exports outlook: Export volumes continue to
STOCK PERFORMANCE (%) The domestic 2W industry is expected to witness a
remain weak (-16% YoY at 43K). Headwinds in major
recovery in FY18, driven by rural growth. With ~50%
52 Week high / low Rs 3,740 / 2,438 countries viz Nigeria, Congo, Egypt, Colombia and
sales from rural markets, we believe HMCL is likely to
3M 6M 12M Nigeria are likely to continue for some more time.
benefit from improving market share in the economy
Absolute (%) 0.9 (4.3) 26.5
and executive segments, as well as in scooters. Near-term outlook: Expect a gradual recovery in 4Q
Relative (%) (3.1) (5.2) 8.6
SHAREHOLDING PATTERN (%)
We have revised FY17/18/19E earnings estimates by volumes, owing to an ebbing of the effect of the
-2% to +8% to factor in margins and weaker exports. demonetisation jolt and marriage season demand.
Promoters 34.64
Maintain BUY with a revised TP of Rs 3,704 (17x Dec- However, rise in commodity prices could put
FIs & Local MFs 15.26
18E Core EPS - Rs 207 + 1x cash-Rs 189). margins under pressure in 4Q.
FIIs 41.08
Public & Others 9.02 Financial Summary
Source : BSE
(Rs mn) 3QFY17 3QFY16 YoY (%) 2QFY17 QoQ (%) FY16 FY17E FY18E FY19E
Net Sales 63,646 72,235 (11.9) 77,963 (18.4) 285,993 292,130 340,874 383,045
EBITDA (adj.) 10,797 11,308 (4.5) 13,689 (21.1) 44,470 46,336 54,671 62,195
Abhishek Jain APAT 7,720 7,932 (2.7) 10,042 (23.1) 31,322 32,391 37,431 42,584
abhishekkumar.jain@hdfcsec.com Diluted EPS (Rs) 38.7 39.7 (2.7) 50.3 (23.1) 156.8 162.2 187.4 213.2
+91-22-6171-7320
P/E (x) 20.8 20.1 17.4 15.3
EV / EBITDA (x) 13.9 13.2 11.2 9.6
Sneha Prashant
sneha.prashant@hdfcsec.com RoE (%) 41.8 36.2 36.3 36.6
+91-22-6171-7336 Source: Company, HDFC sec Inst Research

HDFC securities Institutional Research is also available on Bloomberg HSLB <GO> & Thomson Reuters
 HERO MOTOCORP : RESULTS REVIEW 3QFY17

Quarterly Financials Snapshot: Standalone

Topline growth was (Rs mn) 3QFY17 3QFY16 YoY (%) 2QFY17 QoQ (%)
marginally above estimates Volumes (mn units) 1,473,548 1,690,198 (12.8) 1,823,498 (19.2)
as net ASP grew by ~1% YoY Net ASP 43,192 42,738 1.1 42,755 1.0
owing to better mix (higher Net Sales 63,646 72,235 (11.9) 77,963 (18.4)
share of premium Material Expenses 41,280 48,833 (15.5) 51,833 (20.4)
motorcycles). However, this Employee Expenses 3,743 3,431 9.1 3,575 4.7
was offset by lower spare Other Operating Expenses 7,826 8,663 (9.7) 8,867 (11.7)
parts sales (demonetisation EBITDA 10,797 11,308 (4.5) 13,689 (21.1)
impact) Depreciation 1,249 1,139 9.6 1,193 4.7
EBIT 9,549 10,169 (6.1) 12,496 (23.6)
Net revenue fell owing to 12% Other Income 1,319 902 46.3 1,524 (13.4)
decline in volumes, which was Interest Cost 15 12 23.6 16 (1.9)
impacted by the liquidity PBT 10,853 11,058 (1.9) 14,004 (22.5)
crunc, especially in rural Tax 3,133 3,126 0.2 3,962 (20.9)
areas. Relatively, scooter APAT 7,720 7,932 (2.7) 10,042 (23.1)
volumes were impacted more Adj EPS 38.7 39.7 (2.7) 50.3 (23.1)
(-34% YoY) as compared to Source: Company, HDFC sec Inst Research
the motorcycle segment (-9%
YoY) Margin Analysis: Standalone
3QFY17 3QFY16 YoY (bps) 2QFY17 QoQ (bps)
Material Expenses % Net Sales 64.9 67.6 (274) 66.5 (163)
Employee Expenses % Net Sales 5.9 4.7 113 4.6 130
Gross margin expansion of Other Operating Expenses % Net Sales 12.3 12.0 30 11.4 92
274bps YoY and operating EBITDA Margin (%) 17.0 15.7 131 17.6 (59)
leverage were instrumental in Tax Rate (%) 28.9 28.3 59 28.3 57
the EBITDA margin expanding APAT Margin (%) 12.1 11.0 115 12.9 (75)
by 131bps YoY to 17% Source: Company, HDFC sec Inst Research

The benefit from the leap

programme in 9MFY17 was
80bps (Rs 1.92bn)

Page | 2
 HERO MOTOCORP : RESULTS REVIEW 3QFY17

Volume Assumptions
We expect volumes to grow (in 000 units) FY15 FY16 FY17 FY18E FY19E
at a CAGR of 8% over FY16- Economy 1,110 1,168 1,215 1,372 1,482
19E. We believe the % YoY 6.9 5.2 4.0 13.0 8.0
Executive 4,464 4,367 4,323 4,863 5,252
governments increased
% YoY 5.6 (2.2) (1.0) 12.5 8.0
thrust on improving rural
Premium 106 69 69 80 100
income and better Rabi
% YoY (30.4) (35.1) 1.0 15.0 25.0
crops production will drive
Domestic Motorcycles 5,680 5,603 5,607 6,315 6,834
motorcycle demand in rural
% YoY 4.8 (1.3) 0.1 12.6 8.2
markets
Domestic Scooters 752 819 804 966 1,302
While the impact of % YoY 7.8 8.9 (1.8) 20.2 34.8
demonetisation remains an Exports 200 210 192 216 252
overhang, some of the % YoY 53.0 5.1 (8.8) 12.7 16.7
economic indicators are Total Volumes 6,632 6,632 6,602 7,497 8,388
encouraging. The latest data % YoY 6.2 0.0 (0.5) 13.6 11.9
Source: SIAM, HDFC sec Inst Research
shows Rabi sowing is 3%
above the five-year average
Net Realisations
and is up 6% y-o-y, which
(Rs/vehicle) FY15 FY16 FY17 FY18E FY19E
suggests that rural demand
Domestic 40,500 41,659 42,204 43,603 45,113
will pick up
% YoY 0.8 2.9 1.3 3.3 3.5
Exports 36,006 38,526 39,297 40,476 41,690
HMCL commenced
% YoY 1.1 7.0 2.0 3.0 3.0
commercial production in
Net ASP (incl spares) 41,565 43,122 44,247 45,466 45,664
the new manufacturing
% YoY 2.7 3.7 2.6 2.8 0.4
facility at Halol, Gujarat
Source: Company, HDFC sec Inst Research
(0.75mn capacity) in 3Q
Change In Estimates
We revised FY17/18/19E New Old % chg
earnings estimates by -2% to In Rs mn
FY17E FY18E FY19E FY17E FY18E FY19E FY17E FY18E FY19E
+8% to factor in margin
Net Sales 292,130 340,874 383,045 298,287 355,459 394,246 (2.1) (4.1) (2.8)
expansion and weaker
EBITDA 46,336 54,671 62,195 43,038 55,513 60,891 7.7 (1.5) 2.1
exports
Adj PAT 32,391 37,431 42,584 30,002 38,453 42,448 8.0 (2.7) 0.3
Adj EPS 162 187 213 150 193 213 8.0 (2.7) 0.3
Source: HDFC sec Inst Research

Page | 3
 HERO MOTOCORP : RESULTS REVIEW 3QFY17

GM Improves Owing To Lower RM prices EBITDA Margin Uptick Led By GM Expansion

The company has hiked prices Net ASP (YoY) RM/vehicle (YoY) EBITDA (Rs mn) EBITDA margin - RHS
by ~Rs 500 in order to 8.0% 15.0 18%
partially offset the impact of 6.0%
14.0
17%
rising input costs 13.0
4.0%
12.0 16%
2.0% 11.0
15%
0.0% 10.0
9.0 14%
-2.0%
Lower other expenses and 8.0
-4.0% 13%
7.0
gross margin expansion led to
-6.0% 6.0 12%
sharp improvement in EBIDTA
3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17
margins. However, 4Q
margins will be lower owing
to input cost pressure Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

Motorcycles Mix Favours Exec Segment Scooter Market Share Remained Stable
Ecomony Executive Premium Dom scooter vol (in '000) HMCL MS - RHS
There has been a shift in mix
1 1 1 1 1 1 300 22%
from the executive to 100 1 1 1
economy segment 250 20%
80
200 18%
60 79 79 77 76 77 76 73
80 79
150 16%
40
100 14%
HMCLs scooter market share 20
remained stable at 14.2% 21 20 19 20 22 23 23 24 27 50 12%
QoQ -
- 10%
3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17
Source: SIAM, HDFC sec Inst Research Source: Company, SIAM, HDFC sec Inst Research

Page | 4
 HERO MOTOCORP : RESULTS REVIEW 3QFY17

Exports Affected By Macro Headwinds HMCLs Motorcycle Market Share Improved

Export volume (in '000) % YoY - RHS Hero HMSI Bajaj TVS Others
We expect exports to be 80 150% 100
under pressure in 4QY17 too, 9 8 9 10 9 10 9 9 11
70 125% 7 6 6 7 7 6 7 8 5
owing to lack of dollar 80
17 15 18 18
60 100% 18 18 19 19 18
availability and macro
50 75% 60 16 17 14 15 13 14
concerns in key markets 15 14 15
40 50%
40
30 25%
20 0% 53 53 54 51 52 52 51 50 51
20
10 -25%
HMCLs domestic motorcycle -
- -50%
market share inched up

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17
2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17
marginally in 3QFY17

Source: Company, HDFC sec Inst Research Source: SIAM, HDFC sec Inst Research

HMCL: One-year Forward P/E Chart HMCL: One-year Forward EV/EBITDA Chart
P/E Mean P/E +1 SD -1 SD EV/EBITDA Mean EV/EBITDA
+1 SD -1 SD
24.0 16
Despite valuations being at
near median levels, we 22.0 14
believe there is still room for 20.0
an upside in the stock price 12
18.0
10
16.0

14.0 8

12.0 6
Feb-14

Feb-15

Feb-16

Feb-17
Aug-14

Aug-15

Aug-16
May-14

May-15

May-16
Nov-13

Nov-14

Nov-15

Nov-16

Feb-14

Feb-15

Feb-16

Feb-17
Aug-14

Aug-15

Aug-16
May-14

May-15

May-16
Nov-13

Nov-14

Nov-15

Nov-16
Source: Company, Bloomberg, HDFC sec Inst Research Source: Company, Bloomberg, HDFC sec Inst Research

Page | 5
 HERO MOTOCORP : RESULTS REVIEW 3QFY17

Peer Valuations
Mcap CMP Adj EPS (Rs/sh) P/E (x) EV/EBITDA (x) RoE (%)
Reco TP
(Rs bn) (Rs/sh) FY17E FY18E FY19E FY17E FY18E FY19E FY17E FY18E FY19E FY17E FY18E FY19E
Maruti Suzuki 1,860 6,157 BUY 6,428 188.8 242.3 312.2 32.6 25.4 19.7 17.6 14.7 11.0 24.2 22.7 24.8
Tata Motors 1,742 513 BUY 573 37.7 54.8 55.5 13.6 9.4 9.2 6.9 5.4 3.3 14.8 18.4 15.9
Bajaj Auto 806 2,784 BUY 3,400 135.2 159.8 176.2 20.6 17.4 15.8 14.8 11.8 10.3 30.0 31.5 30.0
M&M 763 1,292 BUY 1,450 62.0 75.8 86.4 20.8 17.0 14.9 12.5 10.6 8.4 15.7 17.3 17.5
Hero Motocorp 652 3,265 BUY 3,704 162.2 187.4 213.2 20.1 17.4 15.3 14.2 11.1 9.8 34.9 38.8 37.8
Eicher Motors 648 23,893 BUY 28,603 624.3 804.9 1,010.0 38.3 29.7 23.7 28.3 22.2 17.7 36.4 34.2 33.9
Ashok Leyland 271 95 BUY 100 3.9 5.3 6.9 24.5 17.9 13.9 13.3 10.5 8.6 19.1 23.4 26.5
Force Motors 56 4,233 BUY 4,952 136.5 193.3 256.6 31.0 21.9 16.5 19.6 12.9 9.7 10.7 14.4 16.6
SML Isuzu 18 1,249 BUY 1,432 45.6 61.2 82.0 27.4 20.4 15.2 16.2 12.6 9.6 19.1 21.1 23.9
Atul Auto 9 426 BUY 507 19.2 26.2 31.1 22.2 16.2 13.7 13.5 9.5 7.9 23.1 28.5 27.7
Source: Company, HDFC sec Inst Research

Page | 6
 HERO MOTOCORP : RESULTS REVIEW 3QFY17

Income Statement Standalone Balance Sheet Standalone

Year ending March (Rs mn) FY15 FY16 FY17E FY18E FY19E Year ending March (Rs mn) FY15 FY16 FY17E FY18E FY19E
Net Revenues 275,651 285,993 292,130 340,874 383,045 SOURCES OF FUNDS
Growth (%) 9.1 3.8 2.1 16.7 12.4 Share Capital - Equity 399 399 399 399 399
Material Expenses 197,539 193,149 193,682 228,386 257,406 Reserves 65,014 79,456 92,833 106,239 119,006
Employee Expenses 11,729 13,196 14,120 15,532 16,929 Total Shareholders Funds 65,413 79,855 93,233 106,639 119,405
Other Operating Expenses 31,163 35,178 37,992 42,286 46,514 Long Term Debt - - - - -
EBITDA 35,220 44,470 46,336 54,671 62,195 Short Term Debt - - - - -
EBITDA Margin (%) 12.8 15.5 15.9 16.0 16.2 Total Debt - - - - -
EBITDA Growth (%) (0.5) 26.3 4.2 18.0 13.8 Net Deferred Taxes (735) 2,278 2,278 2,278 2,278
Depreciation 5,400 4,414 5,265 6,542 6,768 Long Term Provisions & Others 7,997 8,832 10,673 13,429 31,384
EBIT 29,820 40,056 41,071 48,130 55,427 TOTAL SOURCES OF FUNDS 72,675 90,965 106,184 122,346 153,068
Other Income (Including EO APPLICATION OF FUNDS
3,435 2,568 3,081 3,389 3,728
Items) Net Block 29,127 41,275 51,010 66,468 73,700
Interest (1,381) (1,321) (1,469) (1,575) (1,680) CWIP 8,937 3,000 2,000 2,000 2,000
PBT 34,637 43,944 45,621 53,094 60,835 Investments 8,638 10,194 11,694 13,694 14,694
Tax (Incl Deferred) 9,432 12,622 13,230 15,663 18,250 LT Loans & Advances 10,034 13,919 10,225 11,931 13,407
RPAT 25,205 31,322 32,391 37,431 42,584 Total Non-current Assets 56,735 68,387 74,928 94,092 103,800
EO (Loss) / Profit (Net Of Tax) 1,550 - - - - Inventories 8,155 6,730 10,405 13,075 16,791
APAT 23,655 31,322 32,391 37,431 42,584 Debtors 13,896 12,828 12,806 14,942 15,742
APAT Growth (%) 12.2 32.4 3.4 15.6 13.8 Other Current Assets 1,200 1,532 1,632 1,732 1,782
Adjusted EPS (Rs) 118.5 156.8 162.2 187.4 213.2 Cash & Equivalents 24,496 34,338 40,500 37,821 56,307
EPS Growth (%) 12.2 32.4 3.4 15.6 13.8 Total Current Assets 47,747 55,428 65,342 67,570 90,622
Source: Company, HDFC sec Inst Research Creditors 28,419 27,669 28,283 32,933 34,283
Other Current Liabilities & Provns 3,388 5,181 5,802 6,383 7,071
Total Current Liabilities 31,807 32,850 34,086 39,316 41,354
Net Current Assets 15,940 22,578 31,257 28,254 49,268
TOTAL APPLICATION OF FUNDS 72,675 90,965 106,184 122,346 153,068
Source: Company, HDFC sec Inst Research

Page | 7
 HERO MOTOCORP : RESULTS REVIEW 3QFY17

Cash Flow Standalone Key Ratios Standalone

(Rs mn) FY15 FY16 FY17E FY18E FY19E FY15 FY16 FY17E FY18E FY19E
Reported PBT 34,637 43,944 45,621 53,094 60,835 PROFITABILITY (%)
Non-operating & EO items 1,550 - - - - GPM 28.3 32.5 33.7 33.0 32.8
Interest expenses 111 22 35 50 75 EBITDA Margin 12.8 15.5 15.9 16.0 16.2
APAT Margin 8.6 11.0 11.1 11.0 11.1
Depreciation 5,400 4,414 5,265 6,542 6,768
RoE 39.0 43.1 37.4 37.5 37.7
Working Capital Change (12,832) 154 3,020 1,373 13,951 RoIC (or Core RoCE) 37.6 43.5 35.4 33.2 34.1
Tax Paid (9,107) (9,609) (13,230) (15,663) (18,250) RoCE 37.2 41.8 36.2 36.3 36.6
OPERATING CASH FLOW ( a ) 19,758 38,925 40,711 45,396 63,379 EFFICIENCY
Capex (10,991) (10,625) (14,000) (22,000) (14,000) Tax Rate (%) 27.2 28.7 29.0 29.5 30.0
Free cash flow (FCF) 8,767 28,300 26,711 23,396 49,379 Fixed Asset Turnover (x) 3.4 2.9 2.6 2.5 2.6
Investments 9,347 (11,123) (12,500) (9,000) (9,000) Inventory (days) 10.8 8.6 13.0 14.0 16.0
Non-operating Income 79 - - - - Debtors (days) 18.4 16.4 16.0 16.0 15.0
INVESTING CASH FLOW ( b ) (1,565) (21,748) (26,500) (31,000) (23,000) Other Current Assets (days) 1.6 2.0 2.0 1.9 1.7
Payables (days) 37.6 35.3 35.3 35.3 32.7
Debt Issuance/(Repaid) (245) - - - -
Other Current Liab & Provns
Interest Expenses (111) (22) (35) (50) (75) 4.5 6.6 7.2 6.8 6.7
(days)
FCFE 8,412 28,278 26,676 23,346 49,304 Cash Conversion Cycle (days) (11.3) (15.0) (11.5) (10.2) (6.7)
Share Capital Issuance (0) - - - - Debt/EBITDA (x) - - - - -
Dividend (14,319) (16,880) (19,013) (24,025) (29,956) Net D/E (x) (0.4) (0.4) (0.4) (0.4) (0.5)
FINANCING CASH FLOW ( c ) (14,674) (16,902) (19,048) (24,075) (30,031) Interest Coverage (x) (21.6) (30.3) (28.0) (30.6) (33.0)
NET CASH FLOW (a+b+c) 3,518 276 (4,838) (9,679) 10,348 PER SHARE DATA (Rs)
EO Items, Others (1,550) - - - - EPS 118.5 156.8 162.2 187.4 213.2
CEPS 145.5 178.9 188.6 220.2 247.1
Closing Cash & Equivalents 24,496 34,338 40,500 37,821 56,307
Dividend 60.0 72.0 81.1 103.1 127.9
Source: Company, HDFC sec Inst Research
Book Value 327.6 399.9 466.9 534.0 597.9
VALUATION
P/E (x) 27.6 20.8 20.1 17.4 15.3
P/BV (x) 10.0 8.2 7.0 6.1 5.5
EV/EBITDA (x) 17.8 13.9 13.2 11.2 9.6
EV/Revenues (x) 2.3 2.2 2.1 1.8 1.6
OCF/EV (%) 3.1 6.3 6.7 7.4 10.6
FCF/EV (%) 1.4 4.6 4.4 3.8 8.3
FCFE/Mkt Cap (%) 1.3 4.3 4.1 3.6 7.6
Dividend Yield (%) 1.8 2.2 2.5 3.2 3.9
Source: Company, HDFC sec Inst Research

Page | 8
 HERO MOTOCORP : RESULTS REVIEW 3QFY17

RECOMMENDATION HISTORY
Date CMP Reco Target
Hero Motocorp TP 12-Feb-16 2,498 BUY 2,968
3,800 11-Mar-16 2,812 BUY 3,160
3,600 6-May-16 2,894 BUY 3,325
3,400 10-Aug-16 3,412 BUY 3,731
8-Oct-16 3,474 BUY 3,731
3,200
28-Oct-16 3,314 BUY 3,738
3,000
10-Feb-17 3,265 BUY 3,704
2,800
2,600
2,400
2,200 Rating Definitions
Dec-16
Oct-16
Aug-16
Apr-16

Nov-16

Jan-17
Feb-16

Sep-16

Feb-17
May-16

Jun-16

Jul-16
Mar-16

BUY : Where the stock is expected to deliver more than 10% returns over the next 12 month period
NEUTRAL : Where the stock is expected to deliver (-)10% to 10% returns over the next 12 month period
SELL : Where the stock is expected to deliver less than (-)10% returns over the next 12 month period

Page | 9
 HERO MOTOCORP : RESULTS REVIEW 3QFY17

Disclosure:
We, Abhishek Jain, MBA & Sneha Prashant, MBA 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.
Research Analyst or his/her relative or HDFC Securities Ltd. does not have any financial interest in the subject company. Also Research Analyst or his relative or HDFC Securities Ltd. or its
Associate may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of the Research Report. Further
Research Analyst or his relative or HDFC Securities Ltd. or its associate does not have any material conflict of interest.
Any holding in stock No

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HDFC 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.
HDFC 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 in the normal course of business.
HDFC Securities or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research
report. Accordingly, neither HDFC Securities nor Research Analysts 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. HDFC Securities may have issued other reports that are inconsistent with and reach
different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served
as an officer, director or employee of the subject company. We have not received any compensation/benefits from the subject company or third party in connection with the Research
Report. HDFC Securities Ltd. is a SEBI Registered Research Analyst having registration no. INH000002475

HDFC securities
Institutional Equities
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