december 4, 2015 rating matrix dr lal...

December 4, 2015

IPO Review

ICICI Securities Ltd | Retail Equity Research

Strong, sustainable business model… Dr Lal PathLabs (DLPL) is in the business of providing diagnostic & related healthcare tests and services in India. With a cumulative offering of 3,495 diagnostic and related healthcare tests & services, DLPL has proven capability in performing most diagnostic healthcare tests and services currently prescribed by Indian physicians. Its customers include individual patients, hospitals and other healthcare providers as well as corporate customers. DLCP has a pan-India presence with a strong network of 172 clinical laboratories (including a National Reference Laboratory in New Delhi), 1,554 patient service centres & over 7,000 pickup points.

Investment rationale Strong business model DLPL’s business model is a combination of (i) a hub and spoke model, which facilitates economies of scale and future growth scalability, (ii) an instrument leasing model that results in lower capital expenditure and (iii) a large network, which enhances its purchasing power with suppliers. Also, its centralised information technology platform fully integrates a large network through a common logistics and payments system, thereby allowing it to facilitate seamless sample collection and payments from patients and healthcare service providers. Robust financial performance Revenues have grown at a CAGR of 20.7% to | 662.5 in FY13-15 mainly due to growth in sample collections, which grew at 16.7% CAGR in the same period. The strong growth in sample collection was mainly due to network expansion and enlarged portfolio of diagnostics and related healthcare tests and services. Due to its strong business model, the company maintained robust EBITDA margins (~24% in FY15) with healthy return ratios (RoE-27.9%, RoCE-38.3%). Well poised to cash in on growing Indian diagnostic industry Evidence-based treatment is slowly becoming the norm for many doctors as correct diagnosis enables correct therapy and faster patient recoveries. Moreover, as literacy rates and disposable incomes rise, households increasingly demand better healthcare facilities and quality of care. This increase has also been boosted by the rise in urbanisation and increase in lifestyle-related diseases. Crisil expects healthcare delivery services to grow at 16-17% CAGR in FY15-18. We believe DLPL, with its pan-India presence and reputation for providing quality diagnostic healthcare services, is well positioned to take advantage of the growth of the Indian diagnostic healthcare services industry.

Key concern Low entry barriers and sensitivity of brand image. Priced at 46-47x on FY15 EPS of | 11.7 At the IPO price band of | 540-550, the stock is available at 46-47x on FY15 EPS of | 11.7. We recommend that investors SUBSCRIBE to the issue.

Dr Lal PathLabs Price band | 540-550

Rating matrix

Rating : Subscribe Issue Details Issue Details

Issue Opens 8-Dec-15

Issue Closes 10-Dec-15

Issue Size (| crore) 626-638

Price Band (|) 540-550

No. of Shares on Offer (crore) 1.2

QIB (%) 50.0

Non-Institutional (%) 15.0

Retail (%) 35.0 Objects of issue

The offer for sale is essentially to enhance company's visibility and brand and provide liquidity to its existing shareholders and holders of options granted by our Company.

Shareholding Pattern Pre-Offer Post-Offer

Promoters & Promoter Group 63.7 58.7

Institutions 32.2 23.2

Non-Institutions 1.9 1.9

Public - 14.0

Custodians 2.2 2.2

Financial Summary | crore FY11 FY12 FY13 FY14 FY15

Total Revenues 237.3 342.2 451.7 557.9 659.6

EBITDA 57.4 87.3 100.5 140.8 158.9

EBITDA Margins 24.2 25.5 22.2 25.2 24.1

PAT 29.5 45.2 55.6 80.3 95.0

EPS 3.6 5.6 6.9 9.9 11.7

Research Analyst

Siddhant Khandekar [email protected] Mitesh Shah [email protected]

Nandan Kamat [email protected]


Exhibit 1: Key Financials | crore FY11 FY12 FY13 FY14 FY15 H1FY16

Total Revenues 237.3 342.2 451.7 557.9 659.6 392.1

EBITDA 57.4 87.3 100.5 140.8 158.9 85.5

EBITDA Margins 24.2 25.5 22.2 25.2 24.1 21.8

PAT 29.5 45.2 55.6 80.3 95.0 33.3

EPS 3.6 5.6 6.9 9.9 11.7 4.1

RoE 31.8 38.9 34.3 34.7 27.9

RoCE 39.4 58.2 49.3 48.9 38.3

Source: RHP, ICICIdirect.com Research

Company Background

Incorporated in 1949 by Dr Major SK Lal, Dr Lal PathLabs (DLPL) is in the business of providing diagnostic and related healthcare tests and services in India. With a cumulative offering of 3,495 diagnostic and related healthcare tests and services, DLPL has proven capability in performing most diagnostic healthcare tests and services currently prescribed by physicians in India. The company’s customers include individual patients, hospitals and other healthcare providers as well as corporate customers. The diagnostic and related healthcare tests and services by DLPL include (i) routine clinical laboratory tests — such as blood chemistry analysis and blood cell counts; (ii) specialised testing services — such as histopathology (tissue) analysis, genetic marker-based tests, viral and bacterial cultures and infectious disease tests and (iii) preventive testing services — such as screenings for hypertension, heart disease and diabetes. The company performs these tests and services in its clinical laboratories using advanced computerised instruments. The company has built a national hub and spoke network that includes National Reference Laboratory in New Delhi, 171 other clinical laboratories, 1,554 patient service centres and more than 7,000 pickup points as of September 30, 2015. Under this model, specimens are collected across multiple locations within a region for delivery to a pre-designated clinical laboratory for centralised diagnostic testing, which provides economies of scale and offers a scalable platform for the continued growth of our business. DLPL has a pan-India presence, including large cities like New Delhi, Mumbai, Bengaluru, Chennai, Hyderabad and Kolkata. In FY15, the company has collected 2.18 crore samples across India. Exhibit 2: DLPL’s service network No. of Units FY13 FY14 FY15 H1FY16

Clinical Laboratories 131 146 164 172

Total Patient Service Centers 824 1,064 1,340 1,554

Owned Patient Service Centers 48 55 69 79

Franchise Patient Service Centers 776 1,009 1,271 1,475

Pick up Points 2,879 4,225 5,667 7,059



Exhibit 3: Geography wise revenue break-up (| crore) FY13 FY14 FY15 H1FY16

North 339.8 408.5 476.4 295.6

East 45.8 67.1 82.9 51.0

South 24.0 29.3 36.8 22.3

West 37.5 47.2 56.5 32.5

International 4.6 5.8 6.9 3.6

Total 451.6 557.9 659.6 405.0


Exhibit 4: Service network


Exhibit 5: Key events Year Event

2005, 2007 Investment by WestBridge I Investments Holdings.

2008 Acquisition of Paliwal Medicare Private Limited and Paliwal Diagnostics Private Limited.

2010 Establishment of our National Reference Laboratory.

2010, 2013 Investment pursuant to purchase of shares by Wagner Limited from WestBridge I Investment Holdings.

2013 Investment pursuant to purchase of shares by WestBridge Crossover Fund, LLC from WestBridge I Investment Holdings.

2013 Investment by SIH.

2014 Acquisition of APL Clinical Institute of Clinical Laboratory & Research Private Limited.

2015Amalgamation of Sanya Chemicals Private Limited, Amolak Diagnostics Private Limited, Medex Healthcare Private Limited, Medicave Diagnostic Centre Private Limited, Medicave Medical Systems Private Limited and our Company.



Indian diagnostics industry

The diagnostic industry is classified into imaging diagnostics and pathology testing services.

1) Pathology testing or in-vitro diagnosis involves reporting diagnostic information on the basis of collected samples (in the form of blood, urine and stool, among others) and then analysing the samples in a lab to arrive at useful clinical information

2) Imaging diagnostics, or radiology, involves procedures such as taking X-rays and ultrasounds, which help mark anatomical and physiological changes inside a patient’s body to help doctors diagnose the disease

In the spectrum of healthcare delivery services in India, diagnostic services play the role of an information intermediary, providing useful information for correct diagnosis and treatment of patients’ diseases. Diagnostic services would have a lower share in overall healthcare spends yet play a vital role in identifying problem areas and major illnesses. Crisil Research estimates the size of the diagnostics industry at around | 37700 crore in FY15. It expects the diagnostics industry to continue to grow at a CAGR of 16-17% over the next three years to over | 60000 crore by FY18. Major diagnostic healthcare service providers in India offer a wide range of healthcare tests and services. Crisil Research estimates that pathology testing has the larger share of the overall domestic diagnostics market. Pathology includes biochemistry, immunology, haematology, urine analysis, molecular diagnostics and microbiology, among others, whereas imaging diagnostics, or radiology, includes, for example, ultrasound, X-ray, CT scan, MRIs and positron emission tomography – computed tomography, or PET-CT. Exhibit 6: Break-up of pathology testing by services (FY15E)

Biochemistry, 39%

Immunology, 21%

Hematology, 18%

Others, 22%


Diagnostic centres in India can be classified into three types: hospital-based centres, diagnostic chains, standalone centres.


Exhibit 7: Diagnostic centres classification

Diagnostic Chains15%

Hospital based37%

Stand alone centers48%


Standalone centres Standalone centres make up 48% of the diagnostics industry. The absence of stringent regulations and low entry barriers has also helped small pathology labs and radiology centres to proliferate across the country. These labs typically carry out basic tests, which require minimal investments and space. Standalone radiology centres typically have a conventional X-ray and an ultrasound machine. Hospital-based diagnostic centres Usually, secondary and tertiary hospitals run their own pathology labs and radiology centres. However, some hospitals outsource the management of their diagnostic facilities to third-party service providers. Tertiary hospitals, which may not have the equipment to conduct advanced tests, may also send the samples to other laboratories. Given that equipment for advanced tests is expensive, many tertiary hospitals find them economically unviable due to a lack of testing volumes. For example, a hospital may have a machine to test whether a patient is HIV positive or not but to determine a virus count, the sample will have to be sent to a specialised pathology lab. Diagnostics chains Currently, some of the major diagnostics chains in India besides DLPL include Thyrocare, SRL Diagnostics and Metropolis, among others. These service providers have a pan-India presence and offer pathology and/or radiology services. Diagnostics chains adopt a hub-and-spoke model, which helps them increase their presence in the catchment area. Radiology centres for diagnostics chains are mainly present in major urban centres. They do not operate on the hub-and-spoke model, as tests are conducted within the radiology centre itself. Hub-and-spoke model of chain diagnostics centres The components of a hub-and-spoke model typically include a reference lab, satellite labs and collection centres.


Exhibit 8: Hub-and-spoke model es

Reference Lab

Satellite Labs Satellite Labs

CC CC CC CC

Source: RHP, ICICIdirect.com Research; CC: Collection Centres

Reference lab: The reference lab is located centrally, usually in a large metropolitan area, and also typically accumulates samples from satellite labs and collection centres across the country. The reference labs may be equipped to conduct both routine and specialised pathology and radiology tests. Sizes of laboratories may differ as per equipment installed and tests analysed or services offered, and may also include a work area, front office, back office and a sample collection area. Satellite labs: Satellite labs offer a limited range of services. They mainly act as feeders for reference labs. Satellite labs may be either owned or franchised by a diagnostic chain company. Collection centres: Collection centres are located in hospitals, nursing homes, pathology labs, doctors’ clinics, prime commercial properties and retail spaces, among other places. Collection centres may be company-owned or franchised. A franchisee usually pays a franchise fee, around | 30,000-50,000, to get the license to operate a collection centre for a satellite lab. Typically, the collection centres are mainly involved in the collection and forwarding of patient samples to a satellite or reference lab. However, the collection centres of certain chains may also be equipped to conduct some basic tests. The centres usually have basic equipment in the form of a refrigerator and a centrifuge and employ minimal staff, such as a receptionist, lab technician, attendants and delivery staff.


Investment Rationale Strong business model with centralised information technology DLPL’s business model is a combination of (i) a hub and spoke model, which facilitates economies of scale and future growth scalability, (ii) an instrument leasing model that results in lower capital expenditure and (iii) a large network, which enhances its purchasing power with suppliers. Exhibit 9: Increase in collection and patients volume (crore) FY13 FY14 FY15 CAGR % (FY13-15)

Sample Collection 1.6 1.9 2.2 16.7

Patients 0.8 0.9 1.0 13.4


Centralised information technology platform DLPL’s centralised information technology platform fully integrates a large network through a common logistics and payments system, thereby facilitating samples collection and payments from patients and healthcare service providers in a seamless manner. Similarly, its centralised technology platform gives healthcare providers convenient, online access to diagnostic results. Furthermore, the growth of its network is supported by the scalability of its technology platform, which readily can adapt to the increased data requirements of additional clinical laboratories and patient service centres. Robust financial performance Revenues grew at a CAGR of 20.7% to | 662.5 in FY13-15 mainly due to growth in sample collection at 16.7% CAGR over the same period. The strong growth in sample collection was mainly due to network expansion and enlarged portfolio of diagnostics and related healthcare tests and services. Due to its strong business model, the company has maintained robust EBITDA margins (~24% in FY15) with healthy return ratios (RoE-27.9%, RoCE-38.3%). Well poised to cash in on growing Indian diagnostic industry Evidence-based treatment is slowly becoming the norm for many doctors as a correct diagnosis enables correct therapy and faster patient recoveries. Moreover, as literacy rates and disposable incomes rise, households increasingly demand better healthcare facilities and quality of care. This increase has also been boosted by the rise in urbanisation and increase in lifestyle-related diseases such as cardiac diseases, diabetes, hypertension and cancer, among others. This has prompted many healthcare service providers to enhance their offerings in metropolitan areas and tier-I and tier-II cities. Crisil expects healthcare delivery services to grow at 16-17% CAGR in FY15-18. DLPL has built a national network consisting of one National Reference Laboratory in New Delhi, 171 other clinical laboratories and 1,554 patient service centres as of H1FY16. We believe that with DLPL’s pan-India presence including metropolitan areas like New Delhi, Mumbai, Bengaluru, Chennai, Hyderabad and Kolkata with its long operating history and reputation for providing quality diagnostic healthcare services is well positioned to take advantage of the growth of the Indian diagnostic healthcare services industry.


Financials Revenues increase at CAGR of 29.1% over FY11-15 Revenues grew at a CAGR of 29.1% in FY11-15 to | 659.6 crore mainly due to an increase in sample collection. The strong growth in sample collection was mainly due to network expansion and increase in the portfolio of diagnostic and related healthcare tests and services.

Exhibit 10: Revenue trend

237.3342.2

451.7557.9

659.6

0.0

200.0

400.0

600.0

800.0

FY11 FY12 FY13 FY14 FY15

| cr

ore

Total Revenues


Exhibit 11: Geographical revenue break-up

339.8 408.5 476.4

295.6

67.182.9

51.024.0

29.3

36.8

22.337.5

47.2

56.5

45.832.5

4.6

5.8

6.9

3.6

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

FY13 FY14 FY15 H1FY16

| cr

ore

North East South West International


Maintains robust EBITDA margin trend EBITDA margins have remained in a range of 22-25% in FY11-15. Excluding MTM losses pertaining to Esops, the EBIDTA margin increased ~320 bps to 27.7% during same period. Exhibit 12: EBITDA & PAT margins trend

24.121.824.2 25.5

22.2

25.2

12.5 13.2 12.314.4

14.4

8.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

FY11 FY12 FY13 FY14 FY15 H1FY16

%

EBITDA Margins PAT Margins

Source: RHP, ICICIdirect.com Research Net profit increases at 34% CAGR in FY11-15 Net profit grew at 33.9% CAGR over FY11-15 to | 95 crore mainly due to a strong operational performance.


Exhibit 13: Net profit trend

29.5

45.2

55.6

80.3

95.0

0.0

25.0

50.0

75.0

100.0


| cr

ore

PAT

Source: RHP, ICICIdirect.com Research Healthy return ratios Exhibit 14: Return ratios trend

27.934.734.3

38.931.8

38.3

48.949.3

58.2

39.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0


%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

%

RoE RoCE

Source: RHP, ICICIdirect.com Research Leverage free balance sheet with sustainable cash flows Due to its assets light model, the balance sheet is leverage free. Similarly, due to a low cash conversion cycle and a strong operational performance, the company has cumulatively generated | 246 crore of free cash flow by FY15.

Exhibit 15: Net debt/equity

0.0 -0.1 -0.1 -0.5 -0.5

-1.0


Net Debt/Equity


Exhibit 16: Free cash flow

16.0

40.5

61.7 65.3 62.7

0.0

20.0

40.0

60.0

80.0

100.0


| cr

ore

FCF



Key concerns Low entry barriers In the absence of governmental regulation, the diagnostic healthcare services industry in India is highly competitive and has low entry barriers. The laboratories through which it provides diagnostic healthcare services are “clinical establishments” under several state legislations as well as the Clinical Establishments (Registration and Regulation) Act, 2010 and the Clinical Establishments 24 (Central Government) Rules, 2012. These legislations provide for registration and regulation of clinical establishments in India and prescribe minimum standards and chargeable rates for facilities & services provided by them and penalties in case of any contravention with such laws and rules there under. Brand image The reputation of the brand is fundamental to all aspects of its business. The quality and reputation of diagnostic healthcare services can be adversely impacted if its staff or business partners make errors in the handling and labelling of patient samples and specimens, misuse or ineffectively use the complex medical equipment, inadequately extract samples and specimens from patients causing bodily harm or affecting its ability to properly conduct the required testing.

Valuations At the IPO price band of | 540-550, the stock is available at 46-47x on FY15 EPS of | 11.7. We recommend that investors SUBSCRIBE to the issue.

Objects of issue The offer for sale is essentially to enhance the company's visibility & brand and provide liquidity to its existing shareholders and holders of options granted by the company.


Financial summary

Profit and loss statement (| Crore) FY11 FY12 FY13 FY14 FY15Revenue from operations 237.3 342.2 451.7 557.9 659.6Growth (%) NA 44.2 32.0 23.5 18.2Raw Materials 60.9 76.2 97.3 117.7 139.2% of sales 25.7 22.3 21.5 21.1 21.1Employee expenses 37.8 53.8 93.8 101.6 134.4Other expenses 82.0 125.8 162.9 200.2 230.1Total expenses 180.6 255.7 354.0 419.4 503.6EBITDA 57.4 87.3 100.5 140.8 158.9Depreciation and amortisation e 13.6 19.8 20.4 27.2 28.2Interest Income -1.7 -1.5 -0.6 -5.8 -9.4Finance costs 0.8 2.5 0.4 0.2 0.4EBT 44.7 66.4 80.2 119.2 139.7Tax 15.2 21.3 24.6 38.9 44.7Tax rate (%) 33.9 32.0 30.6 32.7 32.0PAT before MI 29.5 45.2 55.6 80.3 95.0Owners of the Parent 29.1 44.7 55.1 79.6 94.2Minority Interest 0.4 0.5 0.5 0.7 0.8PAT 29.5 45.2 55.6 80.3 95.0Diluted EPS 3.6 5.6 6.8 9.9 11.7

Source: Company, ICICIdirect.com Research

Cash flow statement | Crore (| Crore) FY11 FY12 FY13 FY14 FY15Net profit before tax 44.7 66.4 80.2 119.2 139.7Depreciation / amortisation 13.6 19.8 20.4 27.2 28.2Net Increase in Current Assets -2.3 -10.4 -12.1 -15.1 -40.0Net Increase in Current Liabilities 2.5 10.4 9.2 5.6 7.9Other Operating Activities -16.7 -18.1 -9.7 -39.0 -37.9CF from operating activities 41.8 68.1 88.1 98.0 97.9(Purchase)/Sale of Fixed Assets -24.0 -20.9 -19.5 -32.3 -34.9(Purchase)/Sale of Investment -14.7 -20.0 -50.4 22.4 -30.1Other Investing Activities 0.1 2.1 4.6 6.3 10.5CF from investing activities -38.6 -38.8 -65.3 -3.6 -54.5Proceeds from issues of Shares -24.0 -6.6 0.0 0.0 10.5Inc/(dec) in loan funds 17.7 -19.6 0.4 0.0 -0.9(Payment) of Dividend and Div Tax -14.9 -9.7 -15.0 -9.7 -10.4Interest Paid -0.9 -2.5 -0.2 -0.5 -0.1Other Financing Activities 0.0 0.0 0.0 0.0 0.0CF from financing activities -22.2 -38.3 -14.8 -10.2 -0.8Net Cash flow -19.0 -9.0 8.0 84.2 42.5Opening Cash 41.5 22.5 13.4 21.5 105.7Closing Cash 22.5 13.4 21.5 105.7 148.2


Balance sheet | Crore (| Crore) FY11 FY12 FY13 FY14 FY15Liabilities & Share Holding FundsShare capital 5.1 5.0 5.0 80.3 81.3Reserves & surplus 87.8 111.0 157.0 151.2 259.8Minority Interest 0.7 1.1 1.6 1.8 2.3Non-Current LiabilitiesLong term borrowings 4.1 0.0 0.0 0.0 0.0Deferred tax liabilities (net) 0.3 0.2 0.2 0.0 0.0Trade payables 1.6 3.2 5.3 6.5 8.4Other long term liabilities 5.1 6.4 10.7 14.1 11.5Long term provisions 1.2 1.6 0.1 0.3 0.2Current LiabilitiesShort term borrowings 14.2 0.0 0.4 0.9 0.0Trade payables 16.9 22.7 31.4 32.8 34.2Other current liabilities 21.2 7.1 42.4 50.4 58.6Short term provisions 11.5 18.8 14.9 13.2 19.0Total 169.7 177.0 269.0 351.5 475.3AssetsNon-Current AssetsGoodwill on consolidation 18.2 18.2 27.9 41.6 41.6Fixed Assets 94.1 96.3 99.1 98.4 109.5Deferred tax assets (net) 2.3 2.9 12.9 19.6 25.4Long term loans and advances 8.4 15.2 8.6 18.8 13.9Other non-current assets 2.6 2.5 3.7 2.8 3.3Current AssetsCurrent Investments 1.0 4.8 54.8 8.6 37.9Inventories 7.8 6.2 8.6 11.7 14.3Trade receivables 9.7 14.3 19.8 25.2 31.0Cash and bank balances 22.5 13.4 21.5 105.7 148.2Short term loans and advances 2.4 2.8 11.7 15.9 45.7Other current assets 0.6 0.4 0.4 3.4 4.6Total 169.7 177.0 269.0 351.5 475.3


Key ratios Ratio Sheet FY11 FY12 FY13 FY14 FY15Per share data (|)Reported EPS 3.6 5.6 6.8 9.9 11.7Cash EPS 5.3 8.0 9.4 13.2 15.2BV per share 11.4 14.3 19.9 28.5 42.0Cash Per Share 2.8 1.7 2.6 13.0 18.2

Operating Ratios (%)Gross Profit Margins 74.3 77.7 78.5 78.9 78.9EBITDA Margins 24.2 25.5 22.2 25.2 24.1PAT Margins 12.5 13.2 12.3 14.4 14.4Inventory days 11.9 6.6 7.0 7.6 7.9Debtor days 14.9 15.3 16.0 16.5 17.1Creditor days 2.5 3.4 4.3 4.2 4.7EBITDA Conversion Rate 72.8 78.0 87.7 69.6 61.6

Return Ratios (%)RoE 31.8 38.9 34.3 34.7 27.9RoCE 39.4 58.2 49.3 48.9 38.3RoIC 28.0 44.8 32.8 36.6 30.2

Valuation Ratios (x)EV / Net Sales 0.4 0.3 0.3 0.2 0.3Market Cap / Sales 18.8 13.1 9.9 8.0 6.8Price to Book Value 48.1 38.5 27.6 19.3 13.1

Solvency RatiosDebt / EBITDA 0.3 0.0 0.0 0.0 0.0Debt / Equity 0.2 0.0 0.0 0.0 0.0Net Debt/ Equity 0.0 -0.1 -0.1 -0.5 -0.4Current Ratio 0.9 0.9 1.3 1.8 2.5Quick Ratio 0.7 0.7 1.2 1.6 2.4



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Pankaj Pandey Head – Research [email protected]

ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) Mumbai – 400 093

[email protected]


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Accordingly, neither ICICI Securities nor Research Analysts have any material conflict of interest at the time of publication of this report. It is confirmed that Siddhant Khandekar, CA INTER and Mitesh Shah, MS (finance), Nandan Kamat MBA, Research Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. ICICI Securities or its subsidiaries collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report. Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in this report. It is confirmed that Siddhant Khandekar, CA INTER and Mitesh Shah, MS (finance), Nandan Kamat MBA, Research Analysts do not serve as an officer, director or employee of the companies mentioned in the report. ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report. We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

december 4, 2015 rating matrix dr lal...

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