arket strategym - kotak securities · due to the strong fii inflows , nifty-50 has given a strong...

Market Strategy December 2020

AUGUST 2, 2017

Kotak Securities – Private Client Group Please see the Disclosure/Disclaimer on the last page For Private Circulation 2


MARKET OUTLOOK FOR DECEMBER 2020

Major global markets rallied in November The month of November saw the US markets rallying as the US presidential election results pointed towards a split Congress and policy continuity. In addition to this, hopes of an early end to the pandemic also kept sentiments high as vaccines from Moderna and Pfizer+Germany’s BioNTech showed 95% rate of effectiveness. The US markets have risen ~ 13% in November. The outcome of the US elections was a major event for the market and as per the results the democrats will retain control of the House of Representatives and Republicans are seen keeping control of the US Senate. In our view, a split Congress will result in (1) consensus-based policies (stimulus, taxation), (2) no major shift in economic policies. Central banks in the US and EU indicated that they would continue to support low interest rates in view of the continued economic weakness caused by the pandemic. Amidst this, the US Dollar remained steady, which supported flows into emerging markets including India.

The BSE Sensex gained 11% in November on the back of continued economic recovery, higher than expected profit numbers and controlled pace of Covid infections. In addition, strong FII flows (USD 791 cr) aided by ample liquidity from global pool of low-yielding debt also propelled Indian equities to make fresh highs. The mid and small cap indices outperformed the frontline index in November. On the economy side, high frequency indicators are showing recovery but activity levels remain below pre-covid levels. Inflation has continued to remain high and above RBI’s comfort levels, thereby reducing further scope for rate cuts in the near-term. Demand revival is crucial to sustaining the green shoots in the economy. In fact, more money in the hands of urban poor, greater government spending on healthcare and rationalization of GST rates are the need of the hour. To attract investments, India should leverage the opportunities arising out of the geographical shifts in global supply chains. In this regard, the government extended the production-linked incentive (PLI) scheme to 10 sectors with incentives amounting to Rs1.46 lakh cr over the next five years to promote domestic manufacturing.

Earnings Outlook We expect net profits of the Nifty-50 Index to rise by 9.6% and 29.0% in FY21E and FY22E, respectively. We would clarify that FY21E estimates are not very relevant given the impact of Covid pandemic on domestic and global economy, which will result in a sharp decline in both volumes and profitability in many sectors. We would note that the modest rise in net profits in FY21E hides bigger decline in operating profits as FY20 profit was impacted negatively by large adventitious and inventory losses of the downstream oil companies and RIL. We expect a steep recovery in the net profits of the Nifty-50 Index in FY22E from the low levels of FY21E. We see a sharp recovery in net profits in FY22E for (1) automobiles, due to sharp recovery in volumes from FY21E levels, (2) banks, due to our assumption of lower provisions in the banking sector in FY22E (3) metals, on the back of our view of a recovery in metal prices and profitability and (4) the telecom sector led by our assumption of further increase in ARPUs. Our updated free float EPS for Nifty-50 stands at Rs.482 for FY21E and Rs.626 for FY22E.

Valuation and Outlook On a topdown basis, valuations for the Indian market appear to be quite stretched with the Nifty-50 Index trading at 20.9x FY22E net profits, which would put the market at the high end of the historical trading band (based on the past 20 years). On a bottom-up basis, most ‘quality’ non-financials stocks look fairly valued while ‘value’stocks look inexpensive but continue to lack triggers for the unlocking of value. Most banking and NBFC stocks have seen a significant re-rating over the past few weeks as the market (rightly or wrongly) has become more confident about the current level of provisions being adequate relative to eventual NPLs and

Sanjeev Zarbade [email protected]

+91 22 6218 6424



credit costs. In November, the Nifty Bank Index gained 24%. The recent run-up in banks stock prices has erased nearly all of the valuation comfort that one had earlier.

Although, valuations are a worry, the underlying structure of the market remains positive given the strong FII & domestic liquidity, expectations of earnings recovery and early vaccine availability. Due to the strong FII inflows, Nifty-50 has given a strong top-top breakout. If Nifty-50 sustains above 13,000 for few days it can attempt to test the one year Bloomberg consensus target of 13,850. On the downside 12,000 and 10,700 will be the two key support levels for Nfity-50 to keep in mind. With consistent up move every month, the pockets of opportunities are slowly dwindling down. Investors are front running all the positives of FY22 which means future returns could diminish to that extent.

Regarding Mid Cap valuations, the Nifty Mid Cap Index had touched Fw PE of 26x in Jan’18 after which it went through a more than 2 year correction to 12x in May’20. Since then it has smartly covered ground and now trades at 23.6x on 1 Yr Fw basis as compared to 22.5x of Nifty-50. From here on one needs to be very stock specific in the mid & small space. One needs to be careful and not get carried away as scope of making money from current levels is limited both in terms of returns and time horizon. One needs to be stock specific from hereon and add only those companies where one has double conviction and is willing to top up in case of any sharp correction.

Key Risks The biggest concern worldwide is the rich valuations at which equities are trading. Any delay in getting a proper vaccine and a stronger second wave could derail the expectation of a healthy recovery in CY21 and lead to de-rating in future. The pandemic-related job losses have aggravated social challenges, including income and gender inequality. The record fiscal and stimulus spending has increased sovereign debt and stretched governments' capacity to service debt. Any steep rise in inflation could be a big threat to global economies as it could lead to higher bond yields and de-rating of both bond and equity PE. It could also lead to pull back of fiscal spending program.

1-year performance of benchmark global indices (%)

Source: Bloomberg

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8.23 7.57

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(14.71)13.48

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DOW JONES INDUS. AVGNASDAQ COMPOSITE

S&P BSE SENSEX INDEXNifty 50

DAX INDEXCAC 40 INDEX

FTSE 100 INDEXNIKKEI 225

KOSPI INDEXHANG SENG INDEX

SHANGHAI SE COMPOSITESingap0re Straits Times Index

BRAZIL IBOVESPA INDEXMOEX Russia Index



Market performance – Sector wise (for the month of November 2020)

Source: Bloomberg

TOP INVESTMENT IDEAS Price (Rs) Fair Upside/ Mkt EPS (Rs) EPS growth

Rating 1st Value Downside cap. (%) P/E (x) RoE (%)

Company Dec 20 (Rs) (%) (Rs Cr) FY22E FY23E FY22E FY23E FY22E FY23E FY22E FY23E

HPCL BUY 212 260 22.6 32,200 33.0 35.0 -27.8 3.4 6.3 6.1 14.4 13.8

Tech Mahindra BUY 907 1,020 12.5 79,000 55.4 64.3 16.8 16.0 16.4 14.1 19.6 20.0

PNC Infratech * BUY 175 210 20.0 4,498 18.8 23.4 45.8 24.9 8.7 7.5 15.5 16.5

Sobha BUY 317 400 26.2 3,000 33.0 50.0 212.3 51.0 9.5 6.3 12.2 16.5

CESC BUY 592 800 35.1 7,800 105.0 113.0 16.0 7.7 5.6 5.2 9.9 9.9

HUL ADD 2,133 2,500 17.2 501,200 43.0 51.0 23.3 18.0 50.0 42.0 23.0 26.0

Guj Pipavav BUY 95 120 26.3 4,700 6.3 7.3 31.5 15.1 15.0 13.0 14.7 17.0

Source: Kotak Institutional Equities. For details refer to KIE India Daily report dated 1st December 2020; * PNC Inftatech is not covered by KIE team.

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BSE AUTOBSE BANKEX

BSE CAPITAL GOODSBSE CONSUMER DURABLES

BSE EnergyBSE FMCG

BSE HealthcareBSE Industrials

BSE METALBSE OIL & GAS

BSE REALTYBSE TelecomBSE Utilities

BSE IT



INTERNATIONAL MARKETS US Elections The outcome of the US elections is expected to see Democrats retaining control of the House of Representatives and Republicans keeping control of the US Senate. In our view, a split Congress will result in (1) consensus-based policies (stimulus, taxation), (2) no major shift in economic policies, especially related to immigration and trade (relations with China) and (3) a larger bipartisan foreign policy. Thus, we do not see any major risks arising from a radical policy shift. We expect the key forces of (1) de-globalization and (2) diversification of supply chains to remain intact and provide India opportunities in domestic manufacturing.

Outlook of key Central banks

Federal Reserve Federal Open Market Committee officials expressed concern about the pace of the economic recovery, noting that growth was still well off the pace before the coronavirus pandemic hit in March. During his post-meeting news conference, Fed Chairman Jerome Powell said he feels that the Fed still has plenty of policy “ammunition” and pledged that the committee is “strongly committed to using these powerful tools to support the economy.” There is scope for a significant fiscal package in excess of $1trn next year (equivalent to around 5% of GDP). This stimulus, when combined with a long-anticipated Covid-19 vaccine, can really lift the US economy and drive growth. Depending on how robust the recovery is, we could see Fed asset purchases slow or even stop during 2021.

ECB The ECB minutes painted a grim outlook, pointing out that the growth outlook could be ‘bumpier than previously projected’. The central bank is likely to cut borrowing costs for banks further, as well as adjusting its pandemic-related asset purchase program, The ECB president said that while the latest news on a vaccine looks encouraging, we could still face recurring cycles of accelerating viral spread and tightening restrictions until widespread immunity is achieved.

Weak US Dollar, a tailwind for emerging markets Among key macro factors, we expect a weak US dollar, which provide a further tailwind for regional equity markets. We expect a sustained pressure on the US dollar over the next few years given its large fiscal deficits, deeply negative real rates in the US, and an ongoing sharp recovery in the global economy. A weaker dollar is associated with positive FII portfolio inflows and equity performance and enhances total USD returns for USD-based investors.

US Dollar Index

Source: Bloomberg

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Covid Vaccine Update Promising developments on the vaccine front have sparked optimism that the pandemic’s end may be in sight. Massachusetts-based biotech company Moderna announced that its coronavirus vaccine was nearly 95% effective at preventing Covid-19. That news came a week after U.S.-based Pfizer and Germany’s BioNTech revealed similar positive results from trials of their own vaccine. However, while this is definitely a hugely positive development, challenges remain on their storage and distribution. This is because, these vaccines need to be stored at sub-zero temperatures and there is a huge shortage of availability of such cold storage facilities especially in rural areas. Nevertheless, availability of vaccine is huge sentiment booster for sectors like Hospitality, Tourism and Travel.

Risks to equity markets - Growth and policy rates Growth: While the base case view is a cyclical recovery as the global economy comes back from the pandemic, helped in large part by the expected approval of at least one of the several vaccines currently in Phase 3 trials (source: Bloomberg), growth forecasts will need to be cut if the Covid outbreak proves more persistent than expected, or the delivery of a vaccine is delayed, or if a vaccine is logistically hard to deploy. The recent surge in infections in Europe and the US which has resulted in downgrades to 4Q20 growth views is a timely reminder that investors must not be complacent about the economic outlook.

Rates: Bond yield spike would pressure valuations. The base case view is that policy rates would remain low for an extended period and US 10yr yields rise to a moderate extent as the market prices higher inflation expectations. Equity markets can do well in an environment of strong growth, low absolute yields and gradual increases in yields. But if bond yields rise much more or faster than anticipated, markets could become vulnerable, especially since they have become more sensitive to duration risk as the tech sector’s weight has risen.

Crude Oil prices Oil prices climbed to the highest in more than eight months, after data showed a surprise drop in U.S. crude inventories, extending a rally driven by hopes that a COVID-19 vaccine will boost fuel demand. A weaker dollar also propelled crude prices as a lower greenback makes oil less expensive for buyers holding other currencies. Additionally, expectations of OPEC+ extending its current output targets for Q1 2021 also helped push oil prices higher. From an Indian standpoint, higher crude prices will put upward pressure on inflation. This would mean no further rate cuts at least in the near-term.

Brent Crude oil (USD/Barrel)

Source: Bloomberg

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DOMESTIC ECONOMY

Update on economic developments

High frequency indicators shows some softening in most indicators We assess the pace of economic recovery by tracking key high-frequency indicators. Herein, we find that economic activity is still way below pre-covid levels and most economic indicators have softened in the recent week. However, we would be wary of jumping to any conclusion since there were more holidays in the month which may have weighed on the economic activity. (source:

Table – Snapshot of key high frequency indicators

Indicator Direction Comments

Movement Slightly low, but improving On weekly basis, daily average e-waybills continue to increase.

New Vehicle Registration Low but improving Cars and two-wheeler registrations were up sequentially in October, with car registrations close to October 2019 level.

Electricity Consumption Normal Consumed more electricity in past week, compared to a similar period in 2019.

Property Sale Normal Property sale registrations in Maharashtra were much higher in November as compared to April 2020.

New Job Postings Low but improving The Naukri JobSpeak index was relatively flat mom in October, but is still down 27% since the start of the pandemic.

Import Duty Collection Normal Daily import duty collection increased in October, and has been very strong in November MTD.

Petrochem Normal Petrol and diesel consumption increased in October. Petrol and diesel consumption was up yoy.

Source: Kotak Institutional Equities

External Trade – Trade deficit likely rose in October Preliminary estimates suggest that exports fell 5.4% in October to US$24.8 bn as against a rise of 6% last month. Weaker momentum in exports is likely an indication of weakening activity in regions, which are seeing a second wave of infections and are re-introducing lockdowns. Agri-related and textile exports rose 44% and 5%, respectively. Industry-led exports were supported by 22% growth in drugs and pharmaceuticals and 33% growth in ores and minerals.

October imports fell 11.5% to US$33.6 bn but registered a sequential growth of 10.9% as domestic economic activity continued to normalize. Consumption-related imports fared well supported by 36% growth in gold, 50% growth in pearls, precious and semi-precious stones and 16% growth in electronics. Industrial-led imports remain weak led by a 29% fall in imports of capital goods. Overall, October trade deficit stood at US$8.8 bn (US$2.7 bn in September).

In view of the clear mandate in US presidential elections, which could reasonably be expected to continue with its fiscal stimulus and low interest rates, risk to the INR has declined. In addition, range-bound oil prices along with sound domestic external vulnerability metrics should provide support to INR. We continue to see USD-INR in the range of 72-75 through the rest of FY21.

October GST (collected in November) collections at Rs1.05 lakh crores. Based on the PIB release, total GST collection was at Rs1.05 lakh crores for October (up 1% yoy) compared to Rs1.05 lakh crores in September. The October collections indicate some normalization in activity/demand (including festive demand) and impact of unlocking.



Improvement in GST collections is likely to persist into December given further normalization of economic activity led by a drop in active cases. While tax collections will improve going ahead, we continue to look at a shortfall of Rs5.3 lakh cr in total receipts, along with Covid-related expenditure of Rs3 lakh cr and expenditure cuts of around Rs1.7 lakh cr. Thus, we pencil in consolidated GFD/GDP at 13%.

GST collections (Rs lakh cr)

Source: PIB

GDP contracted by 7.5% in Q2FY21 Real GDP growth contracted by 7.5% in 2QFY21 led by slower pace of contraction in private consumption and in investment. Restocking following the lockdown led to a positive growth in inventory levels. Meanwhile, government spending, which was a growth driver in 1QFY21, contracted by 22.2% as government expenditure had to be in check to bridge the shortfall in tax collections. The external sector continued to contribute positively to growth as exports have almost recovered to last year’s levels, while imports fell by 17.2%. After 1HFY21, real GVA and real GDP have contracted 14.9% and 15.7%, respectively.

We expect the recovery to be gradual with growth likely to remain negative over the subsequent two quarters. We remain cautious about (1) increase in the pace of spread of infections recently which has led to re-imposition of restrictions/night-curfews in certain districts, (2) lockdowns in Europe and a spike in infection rate in the US likely keeping exports subdued over the next few months, and (3) likely loss of momentum in economic activity as the impact of pent-up and festive demand starts to subside.

Consumer Price inflation rose to 7-year high October CPI inflation rose to 7.61% as against a slightly downward revised print of 7.27% in September amid an increase in momentum despite favourable base effects. On the policy front, elevated inflation will make it challenging for the MPC members to continue to treat the recent high inflation readings as transient, given that recovery is gathering pace and inflation is becoming more generalized. Since our inflation trajectory suggests that headline inflation would remain above 5% despite the favourable base effects, we see limited scope for further rate cuts unless growth deteriorates significantly. We now expect CPI inflation to average 6.4% in FY21.

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POLICY AND REFORMS Push to drive domestic manufacturing extended to 10 sectors The government extended the production-linked incentive (PLI) scheme to 10 sectors with incentives amounting to Rs1.46 lakh crores over the next five years to promote domestic manufacturing. The sectors include automobiles and automobile components, pharmaceutical drugs, telecom and networking products, electronic goods/technology, food processing, textiles, etc. We note that these sectors are broadly part of the Rs 7.3 lakh cr basket of imports that we had considered eligible for import substitution/PLI schemes to promote indigenous production. The government’s push to domestic manufacturing through extension of the PLI scheme will likely complement its recent labor market reforms and corporate tax rates reduction. We reiterate that these schemes should be augmented with (1) faster and more streamlined approval systems (single-window clearance), (2) lower compliance and legal filings, (3) improvement in logistics (ports and road connectivity), and (4) trade agreements with DMs. We await the details of the individual schemes and the subsequent interest levels of the companies.

Snapshot of imports in the ten sectors

Rs crore Imports from World Imports from China Share (%)

Auto Components 24820 5110 20.6% Chemical Products 156220 59860 38.3% Electrical Equipment 105850 43800 41.4% Electronic Equipment 280320 115340 41.1% Metal Products 148920 27010 18.1% Plastic Products 49640 7300 14.7% Others 81030 29200 36.0% Total 846800 287620 34.0%

Source: Ministry of Commerce and Kotak Institutional Equities

Banks – Fresh draft guidelines The report by the RBI’s internal working group (not a final guideline), discussed several proposals and the key ones include: (a) Lock-in period for promoters, limits on shareholding in the long run which prescribes an upper limit of 26% from 15%, (b) eligibility criteria of promoters for bank licenses which allows large corporate/industrial houses and well run and large NBFCs, (c) raising the initial capital required, (d) nature of the corporate structure which includes (1) exiting NOFHC (Non-operating finance holding company) structure to collapse when there no other group entities, (2) banks licensed prior to 2013 to shift to a NOHFC structure within five years of achieving tax neutrality.

Relief for gas utilities PNGRB’s final gazette notification on ‘Access Code for City or Local Natural Gas Distribution Networks Regulations, 2020’ suggests that the existing CNG stations, as on the date of notification, operated by dealers and franchises of authorized CGD entities, including OMCs, will not be considered as third-party shippers for the purpose of allowing open access in the stations. This regulation will prohibit the OMCs from setting up their own dispending units in their existing network, that has been let out for CNG supplies on behalf of authorized CGD entities; it may also reduce the bargaining power of OMCs to negotiate trade discounts, which anyway have been passed on to end-consumers historically. This development removes a key overhang for IGL and MGL, which generate a substantial portion of profits by earning lucrative margins on the CNG segment, despite depending significantly on OMCs for last-mile access to end-consumers. The regulator seems to have incentivized the creation of new infrastructure



to foster competition instead of encouraging competition in the existing network, which could have benefited consumers by a plausible reduction in CNG margins and in turn, prices.

To be sure, open access will be provided for new CNG stations; however, OMCs may have limited fuel retail outlets with adequate available space to let out for CNG infrastructure in cities like Delhi and Mumbai. Further, the economics in these cities may not be compelling enough to set up a new outlet given high cost and limited availability of land—authorized CGD entities have struggled to add more outlets in these areas in recent years.



KEY SECTORAL OUTLOOK Automobiles During 2QFY21, auto industry reported sharp volumes recovery, except for the medium and heavy commercial vehicle (MHCV) segment. Passenger vehicle industry volumes increased yoy in 2QFY21 led by strong pent-up demand and inventory building by the automobile manufacturers’ ahead of the festive season. Scooter mix in two-wheeler volumes declined in 2QFY21 due to slowdown in urban areas. In October 2020, auto sector volumes recovery continued across segments. Certain manufacturer’s volume recovery suffered on account of supply chain and capacity constraints. Due to improving farm sentiments, tractor segment demand remains strong. MHCV segment continues to lag other segments in terms of recovery in volumes.

Banks and diversified financials (NBFCs) Most banks reported decline in slippages with most PSU banks reporting multi-quarter lows for net NPLs. However, banks made large provisions including contingency provisions for Covid-led potential bad loans. Credit off-take remained muted in 2QFY21 given low appetite for fresh loans in a highly uncertain period and stricter under-writing norms on part of the banks. Most NBFCs had a decent quarter amid a challenging environment as they reported improving NIMs. Borrowing costs for the top-tier NBFCs (Bajaj Finance, HDFC) have declined sharply from the highs of 3Q-4QFY19, but continue to remain elevated for second-tier NBFCs.

Construction materials Demand, after a recovery in September-October 2020, is sustaining the momentum in November 2020. South, where demand was worst-hit in April-August 2020, too is seeing recovery in October-November 2020 led by Andhra and Telangana. We expect industry volumes to decline by 8.5% yoy in FY21E. Historically, prices have remained muted in October-November whereas the hike in October 2020 followed by stability in November 2020 is an aberration. Spot variable costs bottomed in June 2020 and continue to see an increase in November 2020. Cost headwinds should hit from end-3QFY21 but price strength should partly offset the impact on margins.

Consumer Products The Fear of loss of jobs and income has made people circumspect even as things have started improving post unlock. Macro challenges continue to persist and companies are hopeful of a demand pickup by the end of this year or early next year. While the months of April and May continued to be weak, July/August/ September saw mid-single-digit growth. Managements of most companies indicated continued improvement in demand during the course of 2QFY21 and thereafter in October (getting into festive season). There is high demand for personal wash products, household care and select food items. Margin outlook is positive thanks to benign crude and other raw material prices (except dairy). Furthermore, low media intensity, strict control of overhead costs and Ind-AS 116 impact should help reported EBITDA margins, even as operating leverage will be a drag for most names. Rural is now growing faster than urban given (a) lower Covid-led disruption, (b) good harvest season and (c) government initiatives. Companies are taking initiatives to support distribution network – judicious deployment of credit to support trade and insurance for distributor partners, among others. They have further accelerated steps to drive digital adoption in the trade. Management commentary across the board suggests continued recovery in demand, buoyancy in rural consumption and comfort on profitability.



Construction Construction companies under our universe showed improved performance sequentially as the project across sites saw improved labour availability. Companies expect further improvement in the same in Q3FY21 with operating efficiency expected to reach near pre-Covid level by the end of FY21 (subject to Covid situation). There is positive outlook on order inflows based on pipeline of projects across sectors. Strong order inflows and robust pipeline of projects provide good visibility on future growth of the construction companies. The government has also announced certain positive measures which include 1) Rs6,000 cr equity infusion in the NIIF debt platform for boosting infra (as the government targets to create infra financing of Rs1.1 lakh cr by 2025), 2) relief for construction/infrastructure with relaxation of earnest money deposit and performance security requirements for government tenders, and 3) favourable measures by NHAI for boosting investments in HAM road projects.

Capital Goods 2QFY21 domestic revenues of industrial companies for the stocks under our coverage declined 26% yoy, but gained 82% sequentially as execution started to normalize led by improving labor availability and easing of supply chain challenges. Order inflows fell by 45% yoy, but increased 39% qoq and were dominated by infrastructure segment; cement, defense and hydro-carbon segments. Capital Goods and infrastructure stocks have seen some re-rating from the troughs over the past few months but their multiples are reasonable on a FY2023 basis as FY2021-22 revenues and earnings will still reflect bottom-of-the cycle conditions.

Consumer Durables

Most Consumer Durables companies in our coverage reported encouraging set of numbers. Swift recovery after lockdown helped notch good volume growth for Voltas. Higher share of inverter sales in revenue mix coupled with cost control on the marketing front aided margin expansion for the company. The recent government directive to ban import of ACs with refrigerants will tilt the scales in favour of domestic manufacturers. The festive season sales should further aid recovery process in the 3QFY21 results. However, we note that valuations in the sector are expensive and we would prefer buying on declines.

IT sector Notably, large retailers in the US and Europe increased investments in ecommerce to deal with an online surge during the pandemic. Large retailers in the US and Europe indicated good recovery in sales in September and October helped by a revocation of store closures and possible pent-up demand. Despite store re-openings, all companies indicated continued strong growth in digital/online sales channels.

Investments in omni-channel capabilities have received a boost with retailers offering an integrated phygital model. Investments are across technology areas and focused on improving customer experience. Cost take-outs continue and will help fund additional investments. New investments and cost take-outs can drive growth for IT services companies. Companies continue to focus on cost savings through various means. Companies indicated optimizing of supply chain and inventory placement to reduce logistics costs. Cost reduction ambition or budget constraints can drive new outsourcing deals for IT service providers. Walgreen Boots TCS deal is a good example. The company indicated that it has completed the transition of a majority of IT run and operational services to TCS, ahead of plan. Other recent examples include Kingfisher-TCS deal and John Lewis’ partnership with Wipro.



Metals and Mining Steel companies reported sequential improvement in EBITDA margin or EBITDA/tonne led by a combination of higher prices and muted cots (lower coking coal, overhead and operating leverage). We believe that recent hike in steel prices, improving domestic steel demand and lower coking coal costs suggest further expansion in EBITDA/tonne in 3QFY21. Coking coal prices are expected to remain soft on import curbs by China amid political tensions with Australia; these are expected to gradually increase with potential weather-related supply disruptions in 4QFY21.

Pharmaceuticals Pharma companies reported impressive Q2 numbers. Also management commentary suggested that the growth traction in the H2FY21 will be better in comparison to H1FY21. Indian companies are better placed to grab global opportunities and report strong growth ahead. Indian Pharma companies are amongst the most competitive ones globally and hold a meaningful market share in developed as well as other markets. Also Indian pharma companies have emerged strong despite pandemic, which indicates their core strength.

Real Estate Our coverage universe in the real estate sector beat our estimates in Q2FY21. Real estate companies saw sequential improvement in pre-sales and collections. Residential sales bounced back to pre-Covid run rate for Brigade Enterprises. Several real estate players showed improved sales in completed projects. Office portfolio remained relatively less impacted till now in terms of collections and rental payments. Malls segment showed sequential improvement, however rental waivers/discounts continued to impact earnings on yoy basis. Companies like Sunteck is increasing focus from high ticket sales to more affordable lower ticket size. There is positive commentary for Q3FY21 by Sobha based on strong recovery in sales and enquiries. The government has also announced positive major for the sector which includes, 1) increased allocation on PM Awas Yojana (PMAY) Urban by Rs18,000 cr and (2) Income tax relief for developers and home buyers.



EARNINGS OUTLOOK AND FUND BUYING Earnings momentum picking up 2QFY21 net profits of the Nifty-50 Index increased 16.4% yoy versus our expectation of 1.6% decline and EBITDA of the Nifth-50 Index increased 9.4% yoy versus our expectations of 2.5% decline. Almost all sectors performed well with most sectors beating our estimates. The better-than-expected results reflect (1) stronger-than-expected sales and volumes across sectors and (2) lower-than-expected costs as companies continue to maintain a tight control on costs.

We expect net profits of the Nifty-50 Index to grow 9.6% in FY21 and 29% in FY22 versus the 2.5% in FY21 and 33.6% in FY22 at the beginning of the 2QFY21 results season. The earnings upgrades reflect faster-than-expected recovery in most sectors and stronger-than-expected sales and profits across sectors in 2QFY21. We expect a further pickup in economic activity in 2HFY21 and FY22E as beleaguered ‘physical’ sectors see further normalization over the next 9-12 months. However, this assumes no resurgence in Covid-19 pandemic in India in the next few months.

Trend in Nifty EPS and growth (%)

Source: Kotak Institutional Equities estimates

Strong FII buying in November The month of November has seen large foreign portfolio inflows (FPIs) into many markets. After USD 250 cr inflows in October 2020, the November inflows have already touched USD 791 cr (as of Nov 26), thanks to FPIs raising weights on banks, energy and healthcare and trimmed weights on IT, NBFCs, materials and Telecom.

On the other hand, domestic mutual funds were net sellers in November to the tune of USD 304 cr. Systematic Investment Plans (SIP) flows have were steady, though a tad lower on a year-on-year basis. Considering this, there is a possibility of market correction in case the FII flows start reversing.

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Rs cr FY21 FY20 FY19 FY18 FY17

Total 55627 100080 92700 67190 43920 March 8640 8060 7120 4340 February 8510 8090 6430 4050 January 8530 8060 6640 4100 December 8520 8020 6220 3970 November 8270 7990 5890 3880 October 7800 8250 7990 5620 3430 September 7788 8260 7730 5520 3700 August 7792 8230 7660 5210 3500 July 7831 8320 7550 4950 3330 Jun 7917 8120 7550 4740 3310 May 8370 8180 7300 4580 3190 April 8640 8240 6690 4270 3120

Source: AMFI



VALUATIONS MSCI World Vs MSCI EM Index: Fw PE chart

Source: Bloomberg

MSCI India Premium over MSCI EM (on 1 Yr Fw PE basis)

Source: Bloomberg

Nifty-50 Vs Nifty Mid Cap 100 Index (1 Yr Fw PE)

Source: Bloomberg

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14

Jan-

15

Jun-

15

Nov

-15

Apr-1

6

Sep-

16

Feb-

17

Jul-1

7

Dec-

17

May

-18

Oct

-18

Mar

-19

Aug-

19

Jan-

20

Jun-

20

Nov

-20

MSCI World Fw PE MSCI EM Fw PE

10%

20%

30%

40%

50%

60%

70%

80%

Jan-

10

Jun-

10

Nov

-10

Apr-1

1

Sep-

11

Feb-

12

Jul-1

2

Dec-

12

May

-13

Oct

-13

Mar

-14

Aug-

14

Jan-

15

Jun-

15

Nov

-15

Apr-1

6

Sep-

16

Feb-

17

Jul-1

7

Dec-

17

May

-18

Oct

-18

Mar

-19

Aug-

19

Jan-

20

Jun-

20

Nov

-20

4.0

8.0

12.0

16.0

20.0

24.0

28.0

Nov

-05

May

-06

Nov

-06

May

-07

Nov

-07

May

-08

Nov

-08

May

-09

Nov

-09

May

-10

Nov

-10

May

-11

Nov

-11

May

-12

Nov

-12

May

-13

Nov

-13

May

-14

Nov

-14

May

-15

Nov

-15

May

-16

Nov

-16

May

-17

Nov

-17

May

-18

Nov

-18

May

-19

Nov

-19

May

-20

Nov

-20

Nifty Mid Cap 100-Fw PE Nifty 50-Fw PE

Both the Indices are trading in unchartered territories. On 1 Yr Fw basis the MSCI World Index trades at 20.7x

and MSCI EM Index trades at 14.9x. The

valuation premium of MSCI World over MSCI

EM is 39% as compared to 10 year average of ~30%. There is scope

for MSCI EM to outperform the MSCI

World Index due to steep undervaluation.

One 1 Yr Fw PE basis the MSCI Emerging Market

(EM) Index trades at 14.9x Vs MSCI India

which trades at 21.4x. The premium of MSCI India over MSCI EM in

term of valuations works to 44% as compared to

10 year average premium of ~40%. Relative

valuations at current levels seem appropriate

and in the mid range.

The Nifty Mid Cap 100 Index trades way above the Nifty-50 in terms of valuations. One 1 Yr Fw

PE basis the Mid Cap Index trades at 23.7x Vs Nfity-50 which trades at

21.4x. Mid Cap valuations seem to be in

a bubble phase. Even Nifty-50 is trading at new

high valuations in the last 15 years.

Our fair value of Rs.260 implies upside of 22.64% from current market price.

Rationale: • Normalized Q2FY21 results is below estimates due to lower marketing margins.

• Buyback of Rs2500 cr from open market may set a floor to the stock price.

• Buyback through stock exchange route will prohibit participation of promoters.

• BUY as inexpensive valuations and high dividend yield.

• Reiterate BUY with an unchanged fair value of Rs260.

Company update:

Positives:

• In Oct’20, diesel sales grew by 11.5% yoy above industry growth rates of 6.6%.

• Gross debt reduced to Rs34,604 cr in Q2FY21 end from Rs36,655 cr in Q1FY21.

• Mumbai & Vizag refinery expansion expected to commission by CY21 end.

• Normalized refining margins at US$2.7/bbl, at a premium to benchmarks.

Negatives:

• Normalized results below expectations led by lower realized marketing margins.

• In Q2FY21, marketing margins fell 35% sequentially.

` `

`

This is a synopsis of the Research report issued by Kotak Securities Limited. This is not a comprehensive report and before taking any investment decision we request you to refer the detailed report including disclaimers by clicking here: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Further, the recipient of this material should take their own professional advice before investing.

Disclaimer: http://bit.ly/2n5AxIE

Company Update

Current Market Price (CMP) Rs.212

Target Price Rs.260

HPCL (HPCL) – BUY

For detailed report dated 5th November 2020. Note: CMP & valuation may differ due to difference in datesClick here

https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamentalhttp://bit.ly/2n5AxIEhttps://www.kotaksecurities.com/ksweb/php/showpdf.php?q=NzIzNjJfMl9IUENMXzVOb3YyMF9Lb3Rha19JbnN0LnBkZg==

Our fair value of Rs.1020 implies upside of 12.5% from current market price.

Rationale: • Moving toward a full service model to create sustainable growth.

• Confident of scaling up few verticals beyond communication to US$100 cr.

• Measures underway to create a sustainable and profitable growth engine.

• We expect earnings to grow by 16.8% in FY22E and 16% in FY23E.

• TechM trades at inexpensive valuations.

Company update:

Positives:

• Well positioned to tap opportunities from cloud adoption by telecom sector.

• Aims to reach & sustain 15% EBIT margin (earnings before interest and tax) in FY22.

• Deals pipeline up 20% in the past six months, with 73 large deals in the pipeline.

• Large $14,300 cr addressable market. It expects to grow at 11.2% in four years.

• Expanding service penetration to the entire client base from ~30% currently.

Negatives:

• Revenue in US$ terms is expected to decline by 2.2% in FY21E.

` `

`



Company Update


Target Price Rs.1020

Tech Mahindra (TECHM) – BUY

For detailed report dated 1st December 2020. Note: CMP & valuation may differ due to difference in datesClick here

https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamentalhttp://bit.ly/2n5AxIEhttps://www.kotaksecurities.com/ksweb/php/showpdf.php?q=NzQwMDBfM19UZWNoTV8wMURlYzIwX0tvdGFrX0luc3QucGRm

Dated: 2nd December 2020

Our price target of Rs.210 offers upside of 20.0% from current market price.

Rationale: • Strong order book gives revenue growth visibility for the next 2-3 years.

• Management expects H2FY21 to be strong with normalcy in execution.

• We expect earnings (adjusted EPS) to grow at 45.8% in FY22 and 24.9% in FY23.

• Stock currently trades at attractive valuation at 9.3x FY22E earnings.

• We value stock on sum of the part (SOTP) basis and arrive at fair value of Rs210.

Company Update:

Positives:

• Order book at Rs15,800cr & targets new orders of Rs9,000-10,000 cr in FY21.

• PNC has strong balance sheet with net cash in hand (at standalone).

• PNC can meet equity requirement in projects through internal cash accruals.

• PNC expects pickup in execution and has upgraded FY21 revenue guidance.

Negatives:

• Q2 adj sales declined 1.6% YoY on labour supply issues and strong monsoon.

• Impact of Covid-19, slowdown in capex and delays in approvals are key risks.

` `

`



Company Update


Target Price Rs.210

PNC Infratech (PNC) – BUY


https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamentalhttp://bit.ly/2n5AxIEhttps://www.kotaksecurities.com/ksweb/php/showpdf.php?q=NzI5MTlfM19QTkNJbmZyYXRlY2hfMDROb3YyMF9Lb3Rha19QQ0dfMDAzOTQucGRm

Our price target of Rs.400 offers upside of 26.18% from current market price.

Rationale: • Sobha reported pick-up in residential real estate operations to pre-Covid levels.

• Management pointed to strong recovery in sales & enquiries in Q3FY21 so far.

• New project launches will likely help in maintaining sales momentum.

• CMP offers sufficient cushion on concerns over land bank valuation.

• Stock is currently trading at FY22E price to book value (P/B) of ~1.1x.

Company Update:

Positives:

• Sobha sold 8.9 lakh sq.ft. of area in Q2FY21 which was up 37% QoQ.

• Level of enquiries from customers have exceeded pre-Covid levels.

• Management remains confident of achieving positive operating cash flows.

• Sobha is in a much better position to gain market share across geographies.

Negatives:

• Revenues from contractual and manufacturing segment are expected to remainweak in the coming quarters.

` `

`



Company Update


Target Price Rs.400

Sobha – BUY


https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamentalhttp://bit.ly/2n5AxIEhttps://www.kotaksecurities.com/ksweb/php/showpdf.php?q=NzI0MDFfNF9Tb2JoYV8wOU5vdjIwX0tvdGFrX0luc3QucGRm

Our fair value of Rs 800 implies an upside of 35.1% from current market price.

Rationale: • Stability of regulated business and reducing losses from distribution circles.

• Subsidiary – Dhariwal reported improvement in performance.

• Expect earnings to grow by 16.0% in FY22E and 7.7% in FY23E.

• Valuations offer comfort at P/E of 5.5x on FY22E earnings.

Company Update:

Positives:

• Consolidated profits led by gains in operational performance in subsidiaries.

• Subsidiary – Haldia unit reported 21% yoy increase in profits.

• Distribution circles in Rajasthan reported significant improvement from losses.

• Dhariwal has tied up 270 MW under long term power purchase agreement.

Negatives:

• Decline in power sales by 10.9% yoy led to weak standalone performance.

• Malegaon distribution franchise reported loss of Rs40 cr.

• Revised earnings down to factor in lower profits from Noida.

` `

`



Company Update

Current Market Price (CMP) Rs. 592

Target Price Rs.800

CESC (CESC) - BUY

To read the detailed report dated 9th Nov 2020. Note: CMP and Valuation may differ due to difference in dates. Click here

https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamentalhttp://bit.ly/2n5AxIEhttps://www.kotaksecurities.com/ksweb/php/showpdf.php?q=NzMxMzFfM19DRVNDXzlOb3YyMF9Lb3Rha19JbnN0LnBkZg==

Our fair value of Rs.2500 offers an upside of 17.2% from the current market price.

Rationale: • HUVR reported numbers in line with expectations in Q2FY21.

• We expect earnings to grow by 23.3% in FY22 and by 18% in FY23.

• Stock is currently trading at valuation of 43.0x P/E FY23E EPS.

• We value HUVR on Discounted Cash Flow (DCF) based fair value of Rs 2500.

Company Update:

Positives:

• Q2FY21 revenues grew 16% YoY (organic 3%) led by volume growth of 1%.

• HUVR witnessed strong demand for health, hygiene and nutrition portfolio.

• Demand environment has improved with pick-up in economic activity.

• We expect consistent and all-round execution from HUVR.

Negatives:

• Weak demand for discretionary products & out-of-home consumption products

• Demand in metros/cities continues to be muted.

` `

`



Company Update


Target Price Rs.2500

Hindustan Unilever (HUVR) - ADD

For detailed report dated 21st October 2020. Note: CMP & valuation may differ due to difference in dates. Click here

https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamentalhttp://bit.ly/2n5AxIEhttps://www.kotaksecurities.com/ksweb/php/showpdf.php?q=NzE5MjRfMl9IaW5kdXN0YW5VbmlsZXZlcl8yMU9jdDIwX0tvdGFrX0luc3QucGRm

Our fair value of Rs 120 offers upside of 26.3% from the current market price.

Rationale: • Reported in-line Q2FY21 with operating profit of Rs103 crores, down 19% yoy.

• Recovery in key container volumes is expected from October onwards.

• We expect earnings to grow by 31.5% in FY22E & by 15.1% in FY23E.

• Stock is currently trading at valuation of 12.4x P/E FY23E EPS.

• We arrive at Sum of the Parts (SoTP) based Fair Value of Rs 120/share.

Company Update:

Positives:

• Cost control in Q2FY21 led to yoy decline in employee & other expenses.

• Container realizations have sustained yoy on US$ terms.

• 6% price increase from October 1 to aid margin recovery in H2FY21.

• GPPV expects strength seen in bulk volumes to sustain into 3Q.

Negatives:

• Q2FY21 volume decline of 16% was led by decline in container, liquid & Ro-Ro.

• We expect the earnings to decline by 20.5% in FY21E.

` `

`



Company Update


Target Price Rs.120

Gujarat Pipavav Port (GPPV) - BUY

For detailed report dated 12th November 2020. Note: CMP & valuation may differ due to difference in dates. Click here

https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamentalhttp://bit.ly/2n5AxIEhttps://www.kotaksecurities.com/ksweb/php/showpdf.php?q=NzIzNDBfMl9HdWphcmF0X1BpcGF2YXZfMTJOb3YyMF9Lb3Rha19JbnN0LnBkZg==



RATING SCALE (KOTAK SECURITIES – PRIVATE CLIENT GROUP) / KOTAK INSTITUTIONAL EQUITIES Definitions of ratings BUY – We expect the stock to deliver more than 15% returns over the next 12 months ADD – We expect the stock to deliver 5% - 15% returns over the next 12 months REDUCE – We expect the stock to deliver -5% - +5% returns over the next 12 months SELL – We expect the stock to deliver < -5% returns over the next 12 months NR – Not Rated. Kotak Securities is not assigning any rating or price target to the stock. The report has been prepared for information purposes only. SUBSCRIBE – We advise investor to subscribe to the IPO. RS – Rating Suspended. Kotak Securities has suspended the investment rating and price target for this stock, either because there is not a Sufficient fundamental basis for determining, or there are legal, regulatory or policy constraints around publishing, an investment rating or target. The previous investment rating and price target, if any, are no longer in effect for this stock and should not be relied upon. NA – Not Available or Not Applicable. The information is not available for display or is not applicable NM – Not Meaningful. The information is not meaningful and is therefore excluded. NOTE – Our target prices are with a 12-month perspective. Returns stated in the rating scale are our internal benchmark.

FUNDAMENTAL RESEARCH TEAM (PRIVATE CLIENT GROUP) Rusmik Oza Arun Agarwal Amit Agarwal, CFA Priyesh Babariya Head of Research Auto & Auto Ancillary Transportation, Paints, FMCG Research Associate [email protected] [email protected] [email protected] [email protected] +91 22 6218 6441 +91 22 6218 6443 +91 22 6218 6439 +91 22 6218 6433

Sanjeev Zarbade Jatin Damania Purvi Shah K. Kathirvelu Cap. Goods & Cons. Durables Metals & Mining, Midcap Pharmaceuticals Support Executive [email protected] [email protected] [email protected] [email protected] +91 22 6218 6424 +91 22 6218 6440 +91 22 6218 6432 +91 22 6218 6427

Sumit Pokharna Pankaj Kumar Krishna Nain Oil and Gas, Information Tech Midcap M&A, Corporate actions [email protected] [email protected] [email protected] +91 22 6218 6438 +91 22 6218 6434 +91 22 6218 7907

TECHNICAL RESEARCH TEAM (PRIVATE CLIENT GROUP) Shrikant Chouhan Amol Athawale Sayed Haider [email protected] [email protected] Research Associate +91 22 6218 5408 +91 20 6620 3350 [email protected] +91 22 62185498

DERIVATIVES RESEARCH TEAM (PRIVATE CLIENT GROUP) Sahaj Agrawal Malay Gandhi Prashanth Lalu Prasenjit Biswas, CMT, CFTe [email protected] [email protected] [email protected] [email protected] +91 79 6607 2231 +91 22 6218 6420 +91 22 6218 5497 +91 33 6625 9810

mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]



Disclosure/Disclaimer (Private Client Group) Kotak Securities Limited established in 1994, is a subsidiary of Kotak Mahindra Bank Limited. Kotak Securities is one of India's largest brokerage and distribution house. Kotak Securities Limited is a corporate trading and clearing member of BSE Limited (BSE), National Stock Exchange of India Limited (NSE), Metropolitan Stock Exchange of India Limited (MSE), National Commodity and Derivatives Exchange (NCDEX) and Multi Commodity Exchange (MCX). Our businesses include stock broking, services rendered in connection with distribution of primary market issues and financial products like mutual funds and fixed deposits, depository services and Portfolio Management. Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). Kotak Securities Limited is also registered with Insurance Regulatory and Development Authority as Corporate Agent for Kotak Mahindra Old Mutual Life Insurance Limited and is also a Mutual Fund Advisor registered with Association of Mutual Funds in India (AMFI). We are registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014. We hereby declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered in last five years. However SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise/warning/deficiency letters/ or levied minor penalty on KSL for certain operational deviations. We have not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has our certificate of registration been cancelled by SEBI at any point of time. We offer our research services to clients as well as our prospects. This document is not for public distribution and has been furnished to you solely for your information and must not be reproduced or redistributed to any other person. Persons into whose possession this document may come are required to observe these restrictions. This material is for the personal information of the authorized recipient, and we are not soliciting any action based upon it. This report is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It is for the general information of clients of Kotak Securities Ltd. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. We have reviewed the report, and in so far as it includes current or historical information, it is believed to be reliable though its accuracy or completeness cannot be guaranteed. Neither Kotak Securities Limited, nor any person connected with it, accepts any liability arising from the use of this document. The recipients of this material should rely on their own investigations and take their own professional advice. Price and value of the investments referred to in this material may go up or down. Past performance is not a guide for future performance. Certain transactions -including those involving futures, options and other derivatives as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. Reports based on technical analysis centers on studying charts of a stock's price movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match with a report on a company's fundamentals. Opinions expressed are our current opinions as of the date appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. Kotak Securities Limited has two independent equity research groups: Institutional Equities and Private Client Group. This report has been prepared by the Private Client Group. We and our affiliates/associates, officers, directors, and employees, Research Analyst(including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company (ies) discussed herein or act as advisor or lender / borrower to such company (ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of Research Report or at the time of public appearance. Kotak Securities Limited (KSL) may have proprietary long/short position in the above mentioned scrip(s) and therefore may be considered as interested. The views provided herein are general in nature and does not consider risk appetite or investment objective of particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with KSL. Kotak Securities Limited is also a Portfolio Manager. Portfolio Management Team (PMS) takes its investment decisions independent of the PCG research and accordingly PMS may have positions contrary to the PCG research recommendation. Kotak Securities Limited does not provide any promise or assurance of favourable view for a particular industry or sector or business group in any manner. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and take professional advice before investing. The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report. No part of this material may be duplicated in any form and/or redistributed without Kotak Securities' prior written consent. Details of Associates are available on www.kotak.com 1. “Note that the research analysts contributing to the research report may not be registered/qualified as research analysts with FINRA; and 2. Such research analysts may not be associated persons of Kotak Mahindra Inc and therefore, may not be subject to NASD Rule 2711 restrictions on communications

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Kotak Securities Limited has actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of publication of Research Report: No Subject company(ies) may have been client during twelve months preceding the date of distribution of the research report. "A graph of daily closing prices of securities is available at https://www.nseindia.com/ChartApp/install/charts/mainpage.jsp and http://economictimes.indiatimes.com/markets/stocks/stock-quotes. (Choose a company from the list on the browser and select the "three years" icon in the price chart)." Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051, Telephone No.: +22 43360000, Fax No.: +22 67132430. Website: www.kotak.com/www.kotaksecurities.com. Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. Telephone No: 42856825. SEBI Registration No: INZ000200137 (Member ID: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262), AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97. Our research should not be considered as an advertisement or advice, professional or otherwise. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and the like and take professional advice before investing. Investments in securities market are subject to market risks, read all the related documents carefully before investing. Derivatives are a sophisticated investment device. The investor is requested to take into consideration all the risk factors before actually trading in derivative contracts. Compliance Officer Details: Mr. Manoj Agarwal. Call: 022 - 4285 8484, or Email: [email protected]. In case you require any clarification or have any concern, kindly write to us at below email ids: Level 1: For Trading related queries, contact our customer service at '[email protected]' and for demat account related queries contact us at

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