AMIT NALIN SECURITIES PVT. LTD.
ANSec Research 27th July 2011
Investment Case:
Plastic industry grew by 16% during FY2010, whereas Supreme
Industries surpassed the industry growth rate by growing at 20%
during the same period. Anticipating the growing demand for plastic
products, Supreme’s management has layout a huge capex of Rs
1000 crore. The amount would be spent on various green field and
brown field projects during FY2010-2015. Capital requirement for
the capex will be met through internal accrual and debt. As per our
projection company will generate sufficient operating cash flow to
meet the capex requirement and the reliance on debt financing will
be less. This will improve company’s profit and margin.
Contribution from value added products in total sales increased
from 15% during FY2007 to 25% in FY2010. It is further expected
to increase to 30% in FY2011. The increased share of revenue from
value added products will improve company’s margin and ROE.
Supreme Industries has been very innovative with its large product
portfolio. They have been constantly improving their product
portfolio by introducing innovative products considering the
requirement of the market. During FY2010 company had launched
CPVC pipes and Aqua gold plumbing system which were well
accepted by the market. Supreme is setting up a pilot plant of LPG
composite gas cylinder with an annual capacity of 4 lakh tonnes.
The plant will be on stream by end of CY2011. Growing demand for
composite cylinder and its advantage over steel cylinder will further
enhance Supreme Industries growth rate.
Supreme Industries has developed a 11+2 level basement storied
commercial complex at Andheri East, Mumbai. The cost of the
complex was ~Rs 155 crore. The complex is accomplished with
modern amenities and has saleable area of 265000sqft. Out of
265000sqft company has already sold 40000sqft and realised Rs 60
crore. The management plans to sell the entire project for Rs 375
crore by end of CY2011. Proceeding from the sale of complex will
also be deployed towards the capex requirement.
AMIT NALIN SECURITIES PVT. LTD.
Supreme Industries CMP: `170 Fair Value: `210
AmitNalin Securities Pvt. Ltd.
Rs in Crs. 200906 201006 201106e 201206e 201306e
Net Sales 1654.9 2007.0 2408.4 2769.7 3268.2
EBIDTA 251.5 304.7 356.4 423.8 500.0
Net Profit 94.3 142.1 161.2 188.0 227.2
EPS 7.4 11.2 12.7 14.8 17.9
PE* - - 13.5 11.6 9.6
EV/EBIDTA - - 7.3 6.2 5.2
Mcap/Sales - - 0.9 0.8 0.7 *PE based on Standalone Profit
Bloomberg Code SI.IN
Reuters Code SUPI.BO
Market Cap 2200cr.
52 W High 182.00
52 W Low 110.00
Average Volume 88901
Price 170
Sensex 18400
Company Information
Stock Data
Share Holding Pattern
Promoters 49.62
Institutions 1.28
Foreign 8.11
Public 28.45
Analysts
Rujuta Dalal
Jitendra Kumar
Vinod Malviya
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BSE_SENSEX
Amit Nalin Securities Pvt. Ltd.
142/A, Mittal Tower, Nariman Point, Mumbai- 400021. Tel.: 40021601 Fax: 22854721 E-mail: [email protected]
Sensex vs Supreme’s Mcap
AMIT NALIN SECURITIES PVT. LTD.
Valuation (Amt in Crs.)
Standalone Value of SIL (DCF valuation) 2561
Current Mcap of Supreme Petrochem. 580
SIL's Share in Supreme Petrochem. (29.9% stake @30% discount) 121
Total Value of SIL 2682
Equity of SIL (face value of Rs 2) 25.4
Per share Value 211
Financial Analysis and Valuation
We have valued SIL on standalone basis using DCF method with
sales CAGR of 16% during FY2011-2013 and 13% during
FY2013-2015 and terminal growth of 3%. SIL’s management is
making constant effort to increase their share from value added
products. Considering this we expect EBIDTA margin to be stable
at 14-15%.
SIL has been very liberal with dividend payout. On an average of
last 5 years, company has paid out 35% of the net income in the
form of dividend. On account of high capital requirement for
capex we have considered flat payout of 30% over the next 2
years.
The debt has been calculated based on the amount of operating
cash generated by the company. As our projection company will
generate sufficient operating cash flow which will reduce reliance
on debt financing. This will improve company’s leverage and
profitability ratios.
The asset turnover is expected to come down on account of
aggressive capex plan. Lower asset turnover combined lower
leverage will also bring down company’s ROE.
SIL’s one year forward market multiple over the last 4-5 years has
been 15x (average). At current market price of Rs 170, SIL is
trading at 11.5x and 9.6x its FY2012 and FY2013 EPS of Rs 14.8
and 17.9 respectively. Considering the strong balance with lower
leverage, increasing demand for plastic products and lower
market multiple compare to its average multiple we recommend
buy on Supreme Industries with target price of Rs 210, an
upside potential of 24% from the current price of Rs 170.
Du Pont Analysis 200906 201006 201106e 201206e 201306e
Net Profit Margin (a) 0.0570 0.0708 0.0669 0.0679 0.0695
Leverage (b) 1.8179 1.5532 1.9570 1.8222 1.6457
Asset TO (c) 2.9010 3.3562 2.9015 2.5313 2.6418
ROE (a*b*c) 0.3006 0.3690 0.3801 0.3131 0.3023
Expected Dividend payout of
30% and reliance on debt will
be lower. Improving
companies leverage and
profitability ratios.
Average PE over the last 5
year is 15x and present PE
is 10x.
AMIT NALIN SECURITIES PVT. LTD.
Risk Elements:
The unorganized players have been the major threat for the
organized players. The unorganized players use recycled polymers
or plastic made of plastic bags. Thus, they are they are able to
offer low quality products at cheaper rate.
The prices of the raw material (polymers) are linked to
international crude oil prices. Volatility in the oil prices led to
fluctuation and volatility in polymer prices. Oil prices over the last 1
year have been very volatile which impact the plastic player
because they have to pile in inventory. Also, intense competition
from the unorganized segment doesn’t provide opportunity to pass
the rise in input cost to the end users.
Company’s EBIDTA margin has expanded over the last 4 years on
account of increase in revenue share from value added products.
Decrease in revenue share from value added products may bring
company’s EBIDTA margin.
Change in government policy for plastic industry may adversely
impact SIL.
AMIT NALIN SECURITIES PVT. LTD.
Capex Plan
Plastic Industry grew by 16% whereby SIL surpassed this growth
rate by growing at >20% during FY2010. The demand for plastic
products has increased substantially due to robust GDP growth,
growing consumerism, demand for attractive packaging and demand
from various industries, irrigation, and advantages of plastic over
steel products. Anticipating the growing demand for plastic products
management of SIL has layout a huge capex plan of Rs 1000 crore.
The amount will be spent on various green field and brown field
projects which will enhance the present capacity from 328650 MT to
595000 MT by FY2014-2015.
Divisions 2010-11 2011-12 2012-13 2013-14 2014-15
Industrial Molded Products 34700 37500 40000 46000 50000
Plastic Piping System 190000 207500 247500 300000 360000
Cross Laminated Film 17500 22500 22500 27500 27500
Protective Packaging Products 24600 27500 33000 36000 40000
Furniture 29320 40000 45000 48000 54000
Material Handling System 23030 28000 33000 36000 42000
Packaging Film 9500 9500 15500 15500 21500
Total Estimated Production Capacities 328650 372500 436500 509000 595000
Total Capex Budgeted (Crs) 273.35 204.6 159.5 200.2 155.65
Source: Company’s Presentation
We have projected sales CAGR of 16% during FY2011-2013. The
sales growth is projected based on 2x GDP growth rate and also in
line with the present industry growth rate. We believe SIL’s high
growth rate will eventually come down to industry growth rate or
1.5x GDP, so we have projected sales growth rate of 13% during
FY2013-2015. As per our projected cash flow, company will generate
sufficient operating cash to meet its capex requirement. This will
reduce its reliance on debt financing and improve company’s
profitability.
Industry growth has been
robust and SIL’s growth at
surpassed industry growth.
Sales expected to grow by
16% during FY2011-2013.
Projected Cash Flow (Rs in Crs.) 201106e 201206e 201306e 201406e 201506e
EBIT 292.3 345.7 406.8 452.0 507.8
Tax @ 35% 102.3 121.0 142.4 158.2 177.7
NOPAT 190.0 224.7 264.4 293.8 330.1
Depreciation 64.2 78.1 93.3 104.2 115.2
NOPAT + Dep. 254.1 302.8 357.7 398.0 445.3
Chg.in Working Capital 16.9 33.2 62.2 51.3 52.6
Operating Cash Flow 237.3 269.5 295.5 346.7 392.7
Capex 275.0 205.0 160.0 200.0 160.0
AMIT NALIN SECURITIES PVT. LTD.
Value added Products (VAP)
VAP are products having EBIDTA margin of more than 17%. SIL’s
revenue share from VAP has increased from 15% during FY2007 to
25% during FY2010. Increased revenue from VAP coupled with
closure of two losing making units has helped SIL to expand its
blended EBIDTA margin from 10% during FY2007 to 15% in FY2010.
The management expects the share of VAP to further increase to
30% by FY2013. SIL is also able to pass on the rising cost of input
materials to the end users. In our projection, we have estimated
EBIDTA margin of ~15% during FY2011-2013.
Divisions Share of VAP
(2009) Share of VAP
(2010)
Plastic Piping 12.76% 17.08%
Molded Furniture 22.00% 27.72%
Cross Laminated Films 100.00% 100.00%
Protective Packaging 30.00% 29.97%
Total 22.96% 25.26% Source: Company’s Presentation
Constant improvement of Products
Supreme Industries has been very innovative with its large product
portfolio. They have been constantly improving their product
portfolio by introducing innovative products considering the
requirement of the market. During FY2010, company had launched
CPVC pipes and Aqua gold plumbing system which were well
accepted by the market.
Supreme is setting up a pilot plant of LPG composite gas cylinder
with an annual capacity of 4 lakh tonnes at Halol Gujarat. The cost
of the total project is Rs 60 crore and the plant is expected to be on
stream by end of CY2011. Composite cylinder has multiple
advantages over steel cylinder. They are lighter in weight and
explosion proof. Deposit amount for composite cylinder is Rs 3000
whereas for present steel cylinder is ~Rs 1500. At present, there
are 17 crore cylinder in use and the incremental demand expected
by the management is 1 crore every year with an EBIDTA margin of
~15%.
Share of value added
products expected increase to
30% by FY2011.
Constant improvement in the
product portfolio.
AMIT NALIN SECURITIES PVT. LTD.
Cash flow from Real Estate Project
Supreme Industries has developed a 11 + 2 level basement
storied commercial complex at Andheri East, Mumbai. The
complex has facilities like health club, Conference Room, parking
of 350+ cars and 300+ 2 wheelers, DG back up, Green building
with gold rating from the USGBC, pocket terraces at different
levels, terrace garden, cafeteria, 6 high speed elevators and 2
service elevators. The project is ready for sale and was built with
an expenditure of Rs 155 crore. Total saleable area is 265000sqft,
out of which company has already sold 40000sqft and realised Rs
60 crore. Management plans to sell the entire project for Rs 375
crore by end of CY2011 and proceeding from the sale of complex
will be deployed towards the capex requirement. Considering the
current real estate market with high interest cost, we believe that
SIL won’t be able to sell the entire project by end of CY2011 and
the cash realization from the project will spread over the next
year.
Cash flow to be realized over
the next 2 years and would
be deployed for capex
requirement.
AMIT NALIN SECURITIES PVT. LTD.
Company Description
Supreme Industries (SIL), a Mumbai based firm, is one of the largest
plastic processor in India. It is engaged in processing of polymers
and resins into finished plastic products. SIL has 29.9% stake in
Supreme Petrochem and 100% stake in Supreme Industries
Overseas.
SIL has been in Indian Plastic Industry for over 44 years. It has 19
manufacturing facilities spread all over India and operates in four
divisions i.e. Plastic Pipes, Consumer Products (furniture), Industrial
Products, and Packaging Products. With presence in plastic industry
from 1967, SIL has established strong brand equity and captured
significant market share in all the four verticals. During FY2010, SIL
had 7.3%% market share in Plastic Pipes, 13% in Consumer
products, 18% in Industrial Products, and ~33% in Protective
Packaging Products.
SIL
Plastic Pipes
Consumer
Products
(furniture)
Industrial
Products
Packaging
Products
uPVC Pipes,
Injection Molded
fittings, Handmade fittings,
Polypropylene
Random,
Co-polymer Pipes &
Fittings,
HDPE Pipe Systems,
CPVC Pipes Systems,
LLDPE Tube
Inspection Chambers
Furniture
Mats
Industrial
Component
Material
Handling Products ( Crates, Pallets & Dustbins)
Specialty Films
Protective
Packaging products
Cross
Laminated films
Supreme Petrochem (SPL), a BSE & NSE listed company, is one of
the largest single site polystyrene accounting for 2% of world’s
capacity and 60% of India’s capacity. It is single largest exporter
of Polystyrene and caters to more than 90 countries. SPL has
technical collaboration with NOVA INC of USA with Buy Back
arrangement of EPS cup grade production.
Products Capacity (FY2010)
Polystyrene 272000 TPA
Compounded Polymers 33500 TPA
EPS 27700 TPA
XPS 150000 M3
AMIT NALIN SECURITIES PVT. LTD.
AmitNalin Securities Pvt. Ltd.
Management has layout a roadmap for SPL under which its
volume sales is expected to grow at a CAGR of 15.6% during
FY2011-2014. SPL will incur capex of Rs 125 crore to enhance its
present capacity of EPS, compounded polymers, and new power
gas project.
Product Details
Plastic Pipes: This segment contributed 44% in total revenue
and 34% in EBIDTA during FY2010. EBITDTA margin has
improved from ~10% during FY2007 to ~12% during FY2010.
The share of value added products in plastic pipes has increased
from 13% during FY2009 to 17% in FY2010. Demand for PVC
pipes is largely driven by micro irrigation, housing segment and
other infrastructure activities. Almost 50% of the demand for PVC
pipes comes from micro irrigation, 40% from housing segment
and the remaining from infrastructure activities.
SIL’s plastic pipe segment has registered sales CAGR of 25%
during FY2007-2010. This has been accomplished by introducing
new products as per the requirements of the customers. SIL
through its various programs has built strong brand equity. The
quality of product manufactured produced by SIL are
acknowledged as best in the market place. SIL is the only
company which has various systems required in the field of
Irrigation, water transportation, industrial usage, infrastructure
requirements, Borewell, requirement for building industry,
sewerage and rain water harvesting available under one roof.
Consumer Products (furniture and mats)
Consumer Products segment contributed 12% in total sales and
11% in EBIDTA during FY2010. SIL has second largest market
share in this segment and earns EBIDTA margin of 15%. Nilkamal
is the market leader in this segment. The target customers are
retail stores and exports. The products are offered through its
own 209 retail showrooms across India. The retail showrooms are
expected to increase from current 209 to 300 by end of CY2011.
Share of value added products (molded furniture) increased from
22% during FY2009 to 28% in FY2010. Mat is largely for export
purpose. During FY2010, demand was drastically hit due to
recession in the developed markets.
34
11 18
31
6
EBIDTA Contribution (FY2010)
Plastic
Pipes
Consumer
Products
Industrial
Products
Packaging
Other
44
12
20
24
Revene Contribution (FY2010)
Plastic
Pipes
Consumer
Products
Industrial
Products
Packaging
AMIT NALIN SECURITIES PVT. LTD.
Industrial Products
Industrial products contributed 20% in total sales and 18% in
EBIDTA during FY2010. SIL is a major player in industrial
products segment, manufacturing industrial component and
material handling with blended EBIDTA margin of ~14%. Demand
for industrial products is largely driven by auto sector and
consumer durables sector. SIL is the largest supplier of plastic
container to the soft drink industry. SIL has received various
orders from companies such as whirlpool, TATA Motors, TATA
chemicals and Maruti Suzuki etc.
Supreme is setting up a pilot plant of LPG composite gas cylinder
with an annual capacity of 4 lakh tonnes. The plant will be on
stream by end of CY2011. Growing demand for cylinder and its
advantage over steel cylinder will further enhance Supreme
Industries growth rate.
Packaging products
Packaging products contributed 24% in total sales and 31% in the
EBIDTA during FY2010. Products offered under packaging
portfolio are packaging films, protective packaging products,
cross laminated films with blended EBIDTA margin of ~19%. Key
categories under packaging products are Protective Packaging,
Specialty Films, and Cross Laminated Films. The demand for
packaging is driven by Electronics, Food Industry, Sports Goods,
Insulation, Construction, Agriculture, Grain Storage and
Tarpaulin. SIL is the only company to have the technology to
manufacture XF films under the brand name “Silpaulin”. The
share of value added products is 100% under cross laminated
films and 30% under protective packaging.
AMIT NALIN SECURITIES PVT. LTD.
Industry Overview
Indian plastic industry is highly unorganized with >50% of the revenue
contributed by small scale industries. The per capita consumption of
polymer by India is very low compare to other developed and emerging
markets. Due to low penetration and large untapped market, the sector
provides huge opportunities in the future. Plastic consumption in India
was 8 million tonnes in 2010, which is expected to double by 2018
providing huge opportunity for the plastic players.
Dynamics of the Industry
The entry barriers to the industry are very low, whereby new players
can enter the market easy and provide strong threat to the existing
players. Also, the capital requirement in entering the industry is very
low.
The bargaining power of the supplier is medium in the industry due to
increased capacity by most of the polymer supplier in India. Also there
are very few domestic supplier of polymer in India.
Almost 70% of the sector is unorganized so substitute low quality
goods are available at lower prices. This considerably increased the
bargaining power of the buyers in the sector.
Since entry barriers to the sector are low and high substitute products
building brand equity is very essential. Hence, most of the companies
in the organized segment have built strong brand equity through
various programs.
Opportunities
The industry is very labour intensive and availability of cheap labour in
India will boost up the prospect of the companies. This also gives
Indian companies competitive advantage over foreign players.
Strong GDP growth rate and growing consumerism in India coupled
with need for attractive packaging requirement are expected to keep
the demand for plastic at higher levels.
Strong GDP will increase the demand for Automobiles & FMCG,
governments spending on rural areas and irrigation facilities will also
increase, which would indirectly increase the demand for plastic
products.
Threats
The unorganized players have been the major threat for the organized
players. The unorganized players use recycled polymers or plastic
made of plastic bags. Thus, they are they are able to offer low quality
products at cheaper rate.
The prices of the raw material (polymers) are linked to international
crude oil prices. Volatility in the oil prices led to fluctuation and
volatility in polymer prices. Oil prices over the last 1 year have been
very volatile which impact the plastic player because they have to pile
in inventory. Also, intense competition from the unorganized segment
doesn’t provide opportunity to pass the rise in input cost to the end
users.
AMIT NALIN SECURITIES PVT. LTD.
Ratio analysis 200906 201006 201106e 201206e 201306e
Current ratio 1.8 1.7 1.6 1.6 1.6
ROE % 32.8 39.6 34.5 32.3 31.7
ROCE % 34.9 42.1 35.2 31.6 32.9
ROA % 16.5 23.8 19.4 17.2 18.4
Dividend Payout % 32.3 32.2 30.0 30.0 30.0
DE 1.4 0.9 1.0 0.8 0.6
Leverage 1.8 1.6 2.0 1.8 1.6
Asset TO 2.9 3.4 2.9 2.5 2.6
Fixed Asset TO 3.0 3.5 3.1 3.1 3.4
Interest coverage 3.6 7.2 6.6 6.1 7.1
Inventory TO 6.3 5.8 6.0 5.9 6.0
Creditors TO 7.0 7.2 6.8 6.5 6.6
Debtors TO 13.1 16.3 16.1 15.3 14.9
Inventory days 58.0 63.0 60.8 61.5 60.7
Creditors days 51.9 50.9 53.8 56.2 55.3
Debtors days 27.9 22.4 22.7 23.9 24.5
Cash Conversion cycle days 34.0 34.5 29.7 29.2 29.9
Free Cash Flow (Rs in Crs.) 200906 201006 201106e 201206e 201306e
EBIT 198.9 251.7 292.3 345.7 406.8
Tax @ 35% 69.6 88.1 102.3 121.0 142.4
NOPAT 129.3 163.6 190.0 224.7 264.4
Depreciation 52.6 52.9 64.2 78.1 93.3
NOPAT + Dep. 181.8 216.6 254.1 302.8 357.7
Chg. Working Capital 15.2 20.0 16.9 33.2 62.2
Operating Cash Flow 166.6 196.6 237.3 269.5 295.5
Capex 88.0 78.4 275.0 205.0 160.0
FCFF 78.6 118.2 -37.7 64.5 135.5
Net Debt -70.6 -45.9 110.0 31.2 -17.4
Interest Cost Adj. 36.3 22.7 28.8 36.7 37.2
FCFE -28.2 49.7 43.5 59.1 80.9
Free Cash Flow
Ratio
ROE is expected to come
down on account of lower
leverage and low Asset TO.
Aggressive capex plan will
bring down company’s
Asset TO in the short run.
Inventory days is expected
to be stable on growing
demand for plastic
products, whereas debtors
day is expected to improve
due to company’s strict
policy. Hence company’s
working capital will
improve.
With expected sales growth
of 16% and stable EBIDTA
margin of 14-15%,
company will generate
sufficient cash flow.
Market Multiples 201106e 201206e 201306e
PE* 13.5 11.6 9.6
PBV 4.2 3.4 2.8
EV/EBIDTA 7.3 6.2 5.2
Mcap/Sales 0.9 0.8 0.7 *PE based on standalone
AMIT NALIN SECURITIES PVT. LTD.
Rs In Crs. 200906 201006 201106e 201206e 201306e
Net Sales 1654.9 2007.0 2408.4 2769.7 3268.2
Other Income 13.6 16.1 24.1 27.7 32.7
Total Income 1668.6 2023.1 2432.5 2797.4 3300.9
Raw Materials 1054.2 1309.3 1589.6 1814.1 2140.7
Power & Fuel Cost 68.6 80.3 96.3 110.8 130.7
Employee Cost 61.5 71.6 91.5 105.2 124.2
Other Manufacturing Expenses 60.0 82.0 93.9 108.0 127.5
Selling and Administration Expenses 152.5 166.2 192.7 221.6 261.5
Total Expenditure 1414.4 1728.2 2076.1 2373.6 2800.9
EBIDTA 251.5 304.7 356.4 423.8 500.0
Interest 55.8 34.9 44.2 56.4 57.2
EBDT 195.6 269.8 312.2 367.3 442.9
Depreciation 52.6 52.9 64.2 78.1 93.3
Profit Before Tax 143.1 216.9 248.0 289.2 349.6
Tax 48.7 74.8 86.8 101.2 122.4
Standalone Profit 94.3 142.1 161.2 188.0 227.2
Income Statement
200906 201006 201106e 201206e 201306e
SOURCES OF FUNDS :
Share Capital 25.4 25.4 25.4 25.4 25.4
Reserves Total 278.7 388.7 494.3 617.4 766.3
Total Shareholders’ Funds 304.1 414.1 519.7 642.8 791.7
Total Debt 433.2 387.4 497.4 528.6 511.2
Total Liabilities 552.9 643.1 1017.0 1171.4 1302.8
APPLICATION OF FUNDS :
Gross Block 903.6 968.9 1243.9 1448.9 1608.9
Less: Accumulated Depreciation 359.3 403.3 467.5 545.6 638.9
Net Block 544.3 565.6 776.4 903.3 970.0
Investments 49.6 69.3 69.3 69.3 69.3
Current Assets
Inventories 245.5 290.6 337.2 387.8 457.6
Sundry Debtors 115.3 131.0 168.6 193.9 245.1
Cash and Bank 10.7 18.7 19.6 13.8 16.3
Loans and Advances 72.1 97.8 106.0 121.9 143.8
Total Current Assets 443.6 538.2 631.3 717.3 862.8
Less : Current Liabilities
Current Liabilities 192.1 253.6 315.5 362.8 428.1
Provisions 56.1 61.3 74.7 85.9 101.3
Total Current Liabilities 248.2 314.8 390.2 448.7 529.5
Net Current Assets 195.5 223.4 241.2 268.7 333.4
Total Assets 552.9 643.1 1017.0 1171.4 1302.8
Balance Sheet
Sales expected to grow @
16% during FY2011-2013.
EBIDTA margin of 14-15%.
Gross block to grow at
17% during FY2011-2013
on account of aggressive
capex plan.
AMIT NALIN SECURITIES PVT. LTD.
Disclaimer:
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internally developed data and other sources believed to be reliable. Whilst we are not soliciting any action
based upon this information, all care has been taken to ensure that the facts are accurate and opinions
given fair and reasonable. Neither Amit Nalin Securities Pvt. Ltd., nor any of its employees, shall be
responsible for the contents. The securities discussed and opinions expressed in this report may not be
suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. The recipient should independently evaluate
the investment risks. The value and return of investment may vary because of changes in interest rates,
foreign exchange rates or any other reason. Past performance is not necessarily a guide to future
performance. Actual results may differ materially from those set forth in projections.
Amit Nalin Securities Pvt. Ltd may have issued other reports that are inconsistent with and reach different
conclusion from the information presented in this report. Amit Nalin Securities Pvt. Ltd, its affiliates or
individuals connected therewith may have used the information before publication and may have positions
in, may trade in or otherwise may be materially interested in any of the securities mentioned therein.