Morning Insight

JUNE 25, 2020

% Chg News Highlights 24-Jun 1 Day 1 Mth 3 Mths  International Monetary Fund (IMF) projects sharp contraction of Indian Indices 4.5% in Indian economy in 2020; a historic low citing the SENSEX Index 34,869 (1.6) 13.7 22.2 unprecedented coronavirus pandemic that has nearly stalled all NIFTY Index 10,305 (1.6) 14.0 23.9 NSEBANK Index 21,427 (3.8) 24.0 25.3 economic activities, but said the country is expected to bounce back NIFTY 500 Index 8,496 (1.5) 14.6 33.5 in 2021 with a robust 6% growth rate. The COVID-19 pandemic has CNXMcap Index 14,810 (1.4) 20.8 38.5 had a more negative impact on activity in the first half of 2020 than BSESMCAP Index 13,140 (1.1) 16.6 33.2 anticipated, and the recovery is projected to be more gradual than World Indices previously forecast. In 2021, global growth is projected at 5.4 per Dow Jones 25,446 (2.7) 4.0 20.0 cent, as per the report. (ET) Nasdaq 9,909 (2.2) 6.3 34.2 FTSE 6,124 (3.1) 2.2 7.7  Checks on Chinese imports throw domestic industry into tizzy: The NIKKEI 22,379 (0.7) 7.9 14.5 sudden move of the customs authorities to carry out 100% checks Hangseng 24,782 (0.5) 8.0 5.3 of import consignments coming from China at the ports has thrown Shanghai 2,980 - 6.0 7.0 the domestic industry into a tizzy at a time when it’s still far from full Value traded (Rs cr) 24-Jun % Chg Da recovery from the impact of lockdown. Though such a move by the Cash BSE 7,588 (66.0) authorities would adversely affect several industrial sectors, but the Cash NSE 74,690 15.0 immediate pinch is being felt by the electronics player. (FE) Derivatives 22,55,548 63.1  Department for promotion of industry and internal trade (DPIIT) Net inflows (US$ mn) 23-Jun MTD YTD seeks views of e-commerce firms on mentioning 'country of origin' FII 17 2,796 (2,119) on each product: This move comes against the backdrop of calls to Mutual Fund 104.0 (253) 5,083 boycott Chinese goods following border clashes between and Nifty Gainers & Losers Price Chg Vol China in Ladakh. The government procurement portal GeM has 24-Jun (Rs) (%) (mn) made it mandatory for suppliers/sellers to specify the country of Gainers origin while registering new products on the portal. According to the Asian Paint 1,748 3.8 11.5 sources, mentioning the country of origin would help buyers take an ITC 192 3.4 54.7 informed decision while purchasing the item. (ET) Eicher Motors 18,450 3.1 0.3 Losers  Bharti Infratel has extended long stop date for Indus Towers deal till ICICI Bank 349 (7.1) 58.0 August 31. Board said that conditions precedent to be fulfilled for Indusind Bank 486 (6.6) 43.3 the Indus Tower merger to become effective cannot be completed Power Grid 178 (5.1) 18.5 by June 24. Each party retains the right to terminate and withdraw Advances / Declines (BSE) from the scheme. The uncertainty around Vodafone Idea’s financial 24-Jun A B T Total % total position has left the Indus Towers deal hanging in a limbo. (Mint) Advances 139 353 136 628 100 Declines 353 572 54 979 156  : CCI has approved acquisition of 9.99% stake in Unchanged 2 16 9 27 4 Jio Platforms by Facebook’s arm Jaadhu Holdings. (BQ) Commodity % Chg  Blackstone sells Embassy Office Parks REIT units for Rs 22.7 mn 24-Jun 1 Day 1 Mth 3 Mths and raised $300 mn to monetise part of its investment. Embassy Crude (US$/BBL) 40.0 (5.7) 12.5 42.7 Office Parks REIT is the country’s first Real Estate Investment Trust Gold (US$/OZ) 1,771.0 (0.9) 2.5 6.2 (Reit), which was launched last year by Embassy group and global Silver (US$/OZ) 18.0 (2.9) (0.2) 20.5 investment firm Blackstone. Post this deal, Blackstone stake will Debt / Forex Market* 24-Jun 1 Day 1 Mth 3 Mths come down by around 9% from around 55% shareholding earlier. 10 yr G-Sec yield % 6.3 1.0 2.0 (63.0) (BS) Re/US$ 75.7 (6.0) (12.0) (11.0) *Change, basis points  Page Industries on Covid-19 impact: Company’s manufacturing Nifty operations, in all 15 facilities, have resumed work on different dates 12,500 from May 4. The response from the market has been healthy. As 11,500 restrictions get lifted in the market, expect to get back the momentum and accelerate in the coming quarters. (BQ) 10,500 9,500  Fitch Ratings has revised the Outlook on Power Finance 8,500 Corporation, REC to Negative from Stable, and has affirmed the 7,500 Long-Term Foreign-Currency Issuer Default Rating at BBB-. (BQ) Jun-19 Oct-19 Feb-20 Jun-20 What’s Inside Source: NSE  Result Update: Finolex Industries Ltd

Source: ET = Economic Times, BS = Business Standard, FE = Financial Express, IE = Indian Express, BL = Business Line, BQ = BloombergQuint, ToI: Times of India, BSE = , MC = Moneycontrol

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. JUNE 25, 2020

Result Update FINOLEX INDUSTRIES LTD (FIL)

Stock Details PRICE RS.498 TARGET RS.536 ADD Market cap (Rs mn) : 61802 52-wk Hi/Lo (Rs) : 635 /283 Finolex Industries (FIL) reported weak Q4FY20 result led by a decline in Face Value (Rs) : 10 volume and lower margin in PVC resin business, however margin in the PVC 3M Avg. daily vol (mn) : 52,432 pipes business was better than our estimates. The company reported a Shares o/s (m) : 124 decline of 20.5%/29%/39% yoy in standalone net sales/EBITDA/PAT, Source: Moneycontrol, BSE respectively which in management’s view was on account of poor market Financial Summary condition. Y/E Mar (Rs mn) FY20 FY21E FY22E Revenue 29,860 28,349 32,920 Key Highlights Growth (%) -3.4 -5.1 16.1  EBITDA 4,481 4,124 5,164 FIL reported 20.5% yoy decline in net sales at Rs 7.7 bn (Vs our estimates of EBITDA margin (%) 15.0 14.5 15.7 Rs 9.6 bn) driven by 22.7% yoy decline in volume due to weak demand PAT 3,242 2,705 3,502 particularly on the agri side where the volume declined by 25% yoy as against EPS 26.1 21.8 28.2 11% yoy decline in the non agri category. Q4FY20 volume was also impacted EPS Growth (%) -7.3 -16.6 29.5 by Covid-19 led lockdown towards the end of the quarter. Realization BV (Rs/share) 156 167 186 increased by 3.3% yoy led by change in product mix. Dividend/share (Rs) 10.0 10.0 10.0 ROE (%) 14.5 13.5 16.0  EBITDA margin declined by 160 bps yoy in Q4FY20 to 13.6% (vs our ROCE (%) 15.5 15.1 18.8 estimates of 15.2%) due to 720 bps yoy decline in EBIT margin in PVC resin P/E (x) 19.1 22.8 17.6 business to 7.3%, offsetting 230 bps increase in EBIT margin of PVC pipes EV/EBITDA (x) 14.3 15.0 11.8 business. As per management, operating leverage factor impacted resin P/BV (x) 3.2 3.0 2.7 business’ margin as resin volume declined by 21.5% yoy. Source: Company, Kotak Securities - PCG  PVC-EDC delta has declined by 3.2% qoq to an average of USD 574 per tonne Shareholding Pattern (%) in Q4FY20. As per management, PVC-EDC delta has now improved to USD (%) Mar-20 Dec-19 Sep-19 640 per tonne, which augurs well for margins in resin business going ahead. Promoters 52.5 52.5 52.5 FII 2.3 2.3 2.9  As per management, the PVC pipes’ demand is good on agri side and has DII 13.0 11.8 10.0 not tapered off even during the monsoon season. The company expects Others 32.2 33.4 34.6 good demand to continue post monsoon as well. The management has Source: Moneycontrol, BSE indicated that the channel inventory is fully exhausted and it is now building Price Performance (%) up new inventory. As per management, the company has operated at the rate (%) 1M 3M 6M of 95-110% over the last year in terms of the number of days operated post Finolex Industries 22.0 32.0 -8.4 reopening, however this may not be able to compensate for volume lost Nifty 14.4 21.3 -14.4 during the lockdown. Source: Moneycontrol, BSE Outlook and valuation Price chart (Rs) We believe that, FIL would be a major beneficiary from government’s focus on 700 irrigation, providing piped water to all by 2024 and improvement in rural 600 consumption in the long term. We believe that the demand for the PVC pipes 500 from rural segment is expected to remain strong in the coming quarters based 400 on strong agri season, higher reservoir levels, normal monsoon forecast for the 300 current year and increased farm income which is also supported by various government schemes for boosting rural economy. We expect the margins in Oct-19 Apr-19 Apr-20 Feb-20 Jun-19 Jun-20 Dec-19 Aug-19 PVC resin business to remain weak in Q1FY21 due to lower operating leverage and may improve from Q2FY21 onwards based on expectation of improvement Source: Moneycontrol, BSE in the PVC-EDC spread.

We have cut our EPS estimates for FY21E/FY22E by 25%/15% to Rs 21.8/28.2 (Vs Rs 29.1/33.2), respectively by factoring in impact of volume lost during the

lockdown and lower operating leverage. The stock is presently trading at PE of

22.8x/17.6x on FY21E/FY22E EPS, respectively. The stock has moved up by 17% Pankaj Kumar since our last recommendation on 16th April 2020. We recommend ADD (Vs Buy [email protected] earlier) with revised target price of Rs 536 (vs Rs 514 earlier), valuing the stock +91 22 6218 6434 at 19x forward PE (average of 5 years Fwd), as we roll forward to Mar 22E.

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JUNE 25, 2020

Quarterly performance table Particulars Rs Mn Q4FY20 Q4FY19 YoY (%) Q3FY20 QoQ (%) Net Sales 7,661 9,642 -20.5% 6,994 9.5% Expenditure 6,620 8,178 -19.0% 5,610 18.0% RM Cost 5,009 6,419 -22.0% 4,252 17.8% Employee Cost 408 382 6.6% 336 21.3% Other Expenditure 1,203 1,376 -12.5% 1,021 17.8% EBITDA 1,041 1,465 -29.0% 1,384 -24.8% EBITDAM% 13.6% 15.2% 19.8% Other Income 10 122 -92.0% 67 -85.4% PBIDT 1,051 1,587 -33.8% 1,452 -27.6% Depreciation 189 177 6.8% 188 0.6% Interest 90 24 283.3% 18 410.2% PBT 771 1,387 -44.4% 1,246 -38.1% Tax 214 473 -54.7% 313 -31.6% PAT 557 914 -39.0% 933 -40.3% PATM% 7.3% 9.5% 13.3% Equity Capital 1,241 1,241 0.0% 1,241 0.0% EPS 4.5 7.4 -39.0% 7.5 -40.3% Source: Company

Decline in Q4FY20 volume due to weak demand Standalone net revenue for the quarter declined by 20.5% yoy to Rs 7.7 bn (Vs our estimates of Rs 9.6 bn) driven by 1) 22.7% yoy decline in volume (vs estimates of 1% yoy decline) in PVC pipes segment and 21.5% yoy decline in volume in resin segment (Vs estimates of 1% decline) and 2) realization growth of 3.3% yoy in pipes business while resin business witnessed 1.3% yoy decline. Realization in pipes business grew on account of better mix as the company reported relatively lower decline in volume (at 11%) in non agri segment as against 25% yoy decline in agri segment. The company reported 10.9% yoy volume decline in fittings, which is a high margin product. The company reported 9299 tonne (up 6% yoy) of CPVC volume in FY20, however this was lower than 10000 tonne of targeted volume for FY20. As per management, there was general weakness in demand in Q4FY20 which was further impacted by Covid-19 led lockdown towards the end of the quarter. The company has indicated strong demand on agri side post lockdown which is expected to continue post monsoon. But on the plumbing side there is uncertain outlook for demand due to weakness in real estate sector.

Volume Details In tonnes Q4FY20 Q4FY19 YoY (%) Q3FY20 QoQ (%) PVC Pipes & Fittings 62,464 80,771 -22.7% 52,815 18.3% Pipes 57,360 75,043 -23.6% 47,328 21.2% Fittings 5,104 5,728 -10.9% 5,487 -7.0% PVC Resins 60,100 76,549 -21.5% 59,154 1.6% Resins Internal 43,025 53,909 -20.2% 39,246 9.6% Resins External 17,075 22,640 -24.6% 19,908 -14.2% Source: Company

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EBITDA margins impacted by resin business Q4FY20 standalone EBITDA declined by 29% yoy to Rs 1.04 bn (Vs estimates of Rs 1.5 bn) with EBITDA margin declined by 160 bps yoy (below our estimates) due to 720 bps yoy decline in EBIT margin in PVC resin business (to 7.3%), which offset 230 bps improvement in EBIT margin of PVC pipes business. As per management, margin in the resin business took a hit due to lower operating leverage in the resin business. Resin business’ volume declined sharply by 21.5% yoy, negatively impacting operating leverage of the segment. This is likely to continue in Q1FY21 as well due to loss in production days on account of lockdown. The company indicated that PVC-EDC delta has declined by 3.2% qoq to average of USD 574 per tonne in Q4FY20. As per management, PVC-EDC delta has now improved to USD 640 per tonne, which augurs well for margin in resin business going ahead. In FY20, PVC-EDC spread was at USD 559 per tonne Vs 597 per tonne in FY19. As per management, average PVC prices was ~USD 883 per tonne (Vs USD 934/tonne in FY19) while average EDC was ~ USD 308 per tonne (Vs USD 411/tonne in FY19) and VCM was USD 758 per tonne (Vs USD 742/tonne in FY19) in FY20. In the PVC pipes business, average margin in Q4FY20 grew on yoy/qoq by 33%/22%, respectively to Rs 10.1 per kg which was highest in the last several quarters on better product mix as there was increased share of high realization plumbing pipes and fittings. PAT for the quarter declined by 39% yoy to Rs 557 mn (Vs estimates of Rs 1bn) due to lower EBITDA and higher interest cost. The debt at the end of the year increased to Rs 2.8 bn due to short term working capital and as on date it has reduced.

Segmental breakup Rs Mn Q4FY20 Q4FY19 YoY (%) Q3FY20 QoQ (%) Gross Sales 10658 13505 -21.1% 9615 10.8% PVC Pipes & Fittings 6322 7911 -20.1% 5535 14.2% PVC Resins 4336 5594 -22.5% 4080 6.3% EBIT 944 1422 -33.6% 1254 -24.7% PVC Pipes & Fittings 629 612 2.8% 436 44.4% PVC Resins 315 810 -61.1% 818 -61.5% EBIT Margins% 8.9% 10.5% 13.0% PVC Pipes & Fittings 10.0% 7.7% 7.9% PVC Resins 7.3% 14.5% 20.1% Source: Company

Margin trend PVC pipes and resin

25 Pipes & Fittings (LHS, Rs/kg) PVC Resin (RHS, Rs/kg)

20

15

10

5

0 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Source: Company

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Pipes business has positive demand outlook The management has maintained positive demand outlook in the longer run in the PVC pipes business. As per management, the PVC pipes’ demand is good on agri side and has not tapered off even during the monsoon season. The company expects good demand to continue post monsoon. The management has indicated that the channel inventory is fully exhausted and it is now building up new inventory. As per management, the company has operated at the rate of 95-110% over the last year in terms of number of days operated post reopening, however this may not be able to compensate for volume lost during the lockdown. Further the company believes that there is an opportunity to gain in market share for companies like FIL which has strong balance sheet and cash flows as companies with weak balance sheet and cash flows issues may find difficult to sail through in the current challenging macro environment.

Capex plans put on hold FIL has put on hold all of its capex plans for the next 6-9 months due to challenging economic environment on account of the Covid-19 pandemic. The company will reassess the situation once the situation improvements. As per management, the company can quickly built-up capacity for future demand. The company is presently not thinking of any greenfield capex or geographical diversification.

Forward PE (x)

35.0 Forward PE Avg Forward PE 30.0

25.0

20.0

15.0

10.0

5.0

0.0 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Source: Capitaline, Kotak Securities Private Client Group

Revision in estimates Particulars (Rs Mn) Previous Revised % Chg FY21E FY22E FY21E FY22E FY21E FY22E Revenue 33,878 37,507 28,349 32,920 -16.3 -12.2 EBITDA 5,180 5,820 4,124 5,164 -20.4 -11.3 EBITDA margin (%) 15.3 15.5 14.5 15.7 -80 bps 20 bps PAT 3,609 4,114 2,705 3,502 -25.0 -15.0 EPS (Rs) 29.1 33.2 21.8 28.2 -25.0 -15.0 Source: Kotak Securities Private Client Group

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Company Background Finolex Industries Ltd (formerly Finolex Pipes Ltd), was incorporated in 1981, and is a strong brand in Indian PVC pipes and fittings market. The company manufactures and sells PVC pipes, fittings and PVC resin. 85.5% of its revenue is contributed by PVC pipes and fittings and balance 14.5% is contributed by PVC resins in FY20. The company began its journey as a PVC pipes player and further diversified in manufacturing of PVC resin in 1994 as part of its backward integration strategy. Further, it commissioned 43 MW thermal power plant at Ratnagiri in 2009-10 to reduce its dependency on the grid for its power requirements. Presently, FIL is a strong player in terms of market share in agriculture pipes segment and has strong foothold in PVC resin business in India. FIL has three pipes manufacturing plants located in (Maharashtra), Ratnagiri (Maharashtra) and Masar (near Vadodara, Gujarat) with installed capacity of 370,000 tonne per annum. FIL has strong distribution network with over 850 dealers and 18,000+ retail touch points across country. (Source: Company)

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Financials: Standalone

Profit and Loss Statement (Rs mn) Balance sheet (Rs mn) (Year-end Mar) FY19 FY20 FY21E FY22E (Year-end Mar) FY19 FY20 FY21E FY22E Revenues 30,913 29,860 28,349 32,920 Paid - Up Equity Capital 1,241 1,241 1,241 1,241 % change yoy 12.9 -3.4 -5.1 16.1 Reserves 24,043 18,057 19,521 21,783 Direct Cost 19,098 19,288 18,227 21,067 Net worth 25,284 19,298 20,762 23,024 Employee Cost 1,344 1,456 1,456 1,601 Borrowings 906 2,827 1,327 1,027 Other Expenses 4,428 4,635 4,543 5,088 Net Deferred tax & others 853 737 737 737 Total Expenses 24,870 25,379 24,225 27,756 Total Liabilities 27,043 22,862 22,826 24,787 EBITDA 6,043 4,481 4,124 5,164 % change yoy 24.9 -25.9 -8.0 25.2 Depreciation 701 738 788 834 Gross Block 11,823 13,222 13,522 14,772 EBIT 5,342 3,743 3,335 4,330 Accumulated Depreciation 2,315 3,053 3,841 4,675 Other Income 416 308 386 443 Net block 9,509 10,169 9,681 10,097 Interest 123 119 85 66 Capital work in progress 902 73 73 73 Profit Before Tax 5,356 3,932 3,636 4,708 Investments 13,174 5,960 5,960 5,960 % change yoy 22.1 -26.6 -7.5 29.5 Inventories 6,205 8,578 8,144 9,457 Tax 1,858 690 931 1,205 Sundry debtors 743 732 777 902 as % of EBT 34.7 17.5 25.6 25.6 Cash and equivalents 291 573 1,212 1,931 PAT 3,498 3,242 2,705 3,502 Loans and advances & Others 3 9 9 9 % change yoy 17.2 -7.3 -16.6 29.5 Total current assets 7,850 10,952 11,202 13,359 Shares outstanding (mn) 124 124 124 124 Sundry creditors and others 2,838 2,334 2,216 2,573 EPS (Rs) 28.2 26.1 21.8 28.2 Provisions 230 297 297 297 DPS (Rs) 10.0 10.0 10.0 10.0 Total CL & provisions 4,392 4,292 4,090 4,701 CEPS(Rs) 33.8 32.1 28.2 34.9 Net current assets 3,458 6,660 7,112 8,658 BVPS(Rs) 203.7 155.5 167.3 185.5 Total Assets 27,043 22,862 22,826 24,787 Source: Company, Kotak Securities – Private Client Group Source: Company, Kotak Securities – Private Client Group

Cash flow Statement (Rs mn) Ratio Analysis (Year-end Mar) FY19 FY20 FY21E FY22E (Year-end Mar) FY19 FY20 FY21E FY22E Pre-Tax Profit 5,356 3,932 3,636 4,708 EBITDA margin (%) 19.5 15.0 14.5 15.7 Depreciation & Others 701 738 788 834 EBIT margin (%) 17.3 12.5 11.8 13.2 Change in WC 237 (2,468) 187 (827) Net profit margin (%) 11.3 10.9 9.5 10.6 Other operating activities (1,735) (571) (846) (1,140) EPS growth (%) 17.2 (7.3) (16.6) 29.5 Operating Cash Flow 4,559 1,631 3,765 3,575 Receivables (days) 9 9 10 10 Capex (1,366) (568) (300) (1,250) Inventory (days) 73 105 105 105 Free Cash Flow 3,193 1,062 3,465 2,325 Payable (days) 49 49 49 49 Change in Investments (1,342) (1,199) - - Cash Conversion Cycle (days) 37 74 76 75 Investment cash flow (2,709) (1,768) (300) (1,250) Equity Raised - 0 - - Asset Turnover (x) 1.1 1.2 1.3 1.4 Debt Raised/Repaid (101) 1,921 (1,500) (300) Net Debt/ Equity (x) 0.0 0.1 0.0 (0.0) Dividend (1,452) (1,452) (1,241) (1,241) RoCE (%) 19.5 15.5 15.1 18.8 Other financing activity (240) (50) (85) (66) RoE (%) 13.2 14.5 13.5 16.0 CF from Financing (1,793) 419 (2,826) (1,607) P/E (x) 17.7 19.1 22.8 17.6 Change in Cash 57 282 639 718 P/BV (x) 2.4 3.2 3.0 2.7 Opening Cash 234 291 573 1,212 EV/EBITDA (x) 10.3 14.3 15.0 11.8 Closing Cash 291 573 1,212 1,931 EV/Sales (x) 2.0 2.1 2.2 1.8 Source: Company, Kotak Securities – Private Client Group Source: Company, Kotak Securities – Private Client Group

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RATING SCALE (PRIVATE CLIENT GROUP) 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 Siddhesh Jain [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 6615 6273

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Disclosure/Disclaimer (Private Client Group) Kotak Securities Limited established in 1994, is a subsidiary of 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 (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 with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). 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Kotak Securities – Private Client Group Please see the Disclosure/Disclaimer on the last page For Private Circulation 9 JUNE 25, 2020

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Kotak Securities – Private Client Group Please see the Disclosure/Disclaimer on the last page For Private Circulation 10