Savita Oil Technologies Ltd (SOTL)

Techno Fundamental Note

HDFC Sec Scrip ID
SAVCHEEQNR

CMP: Rs.400.60
CMP
Rs.400.60

January 09, 2012

Target
Rs.451.00

Industry
Chemicals

Recommended Action
Buy on dips

Entry Band
Rs.401-393

Stop Loss Time Horizon

Rs.382.00 4-6 weeks

Company Background
Savita Oil Technologies Limited (SOTL) erstwhile Savita Chemicals Ltd. was incorporated in 1961 as a small manufacturing unit producing white mineral oil in Mumbai. Since then SOTL has expanded its product mix and today it specializes in manufacturing of petroleum derivatives - specialty products like transformer oil, liquid paraffin, petroleum Jelly, white mineral oil, automotive and other industrial lubricants. The products manufactured have wide industrial applications in pharmaceuticals, cosmetic, plastic, power, industrial and automotive. On 19th July 2011 SOTL completed 50 years since its formation. SOTL also operates wind power plants in Maharashtra, Karnataka and Tamil Nadu with a generation capacity of 43.2 MW (as of March 2011). The power generation capacity has grown at a CAGR of 111.6% for FY08- 11. During FY11 SOTL has generated 71.2 mn units of electricity as against 64 mn units in FY10. Windmills also provide additional income by way of carbon credits. For Automotive lubricants, SOTL had entered into a technical collaboration with Idemitsu Kosan, Japans largest Independent oil company to manufacture automotive and industrial lubricants, to supply majorly to automotive manufacturers like Honda, Toyota, etc. Idemitsu Lube India Private Limited has vide a Notice dated October 13, 2011 terminated the technical collaboration agreement for manufacturing and marketing of Idemitsu Products. This termination is to take effect after 180 days from the date of the Notice. However, SOTL has the right to manufacture and market the Idemitsu Products for a further period of 3 years at its discretion from the expiry of the said 180 days. The Technical Collaboration Agreement for Genuine Products with the same collaborators continues to remain in force. SOTL feels that termination of this agreement would only marginally impact the sales volume of the Company. This impact would not exceed 2% (Two percent) of the total sales volume as appearing in the audited accounts of SOTL for FY11. SOTL with its core competence is now expanding its presence in retail automotive lubricant business under its own brand SAVSOL. Its core strength has been transformer oil with its clientele like State Electricity Board (SEB) and almost all major power equipment manufacturers like ABB, BHEL, Crompton Greaves, NGEF, Areva T&D, Bharat Bijlee, TELK & others. It also sells white oil to the major FMCG players like HLL, J&J, Dabur, Marico, etc and Pharma companies like Pfizer, GSK and others. While transformer oil contributes to 40-45% of sales, the other two i.e. auto lubricants and white oil contributes the balance almost equally. A small portion comes from trading in base oils/greases. SOTL sells transformer oil under the brand Transol. Product Range
Product Description User Industries/Companies All the major players of Power Industry such as ABB, Areva T&D, BHEL, Crompton Greaves, SEBs, NTPC, Alstom, Bharat Bijlee etc. TRANSOL is regularly exported to Middle East, Far East, South East Asia and to the countries of African Continent and subcontinent, apart from reputed domestic customers Transformer Oil Used in cosmetics, Personal Care and pharmaceutical Industry. Major customers are Johnson & Johnson, Hindustan Unilever Limited, Dabur, Marico, Supreme Industries etc. It is regularly exported to Middle East, Far East, South East Asia, Europe and to the countries of African Continent and Liquid Paraffins & white oils subcontinent, apart from reputed domestic customers Tie-ups with OEMs, to supply automotive lubricants to Hero Honda, HMSI, Maruti Suzuki, TVS, Mahindra & Mahindra, Toyota, Honda, Hero etc. and for industrial lubricants to BHEL, BEML, Siemens, and Telcon etc. for Earthmoving & Construction Equipments. SOTL had a technical Automotive Lubricants collaboration with Idemitsu, Japans largest independent oil and Energy Company to manufacture Industrial Lubricants superior grade automotive and industrial lubricants.
(Source: Company)

Transol

Savonol

Savsol

Locations SOTL has its ultra modern manufacturing facilities strategically located at Turbhe, Navi Mumbai and Silvassa. Capacities at both the plants are almost the same and the total capacity as of March 2011 was 3.2 lac tonnes. R&D At the core of SOTL's sustained pioneering status lies a strong R&D base and a corporate culture that encourages experimental efforts to fulfil customer requirements. A team of highly competent scientists and most sophisticated equipments provide SOTL the flexibility to develop and deliver tailor-made products to suit individual customer's needs. Since the 1970s, Savita Group's R&D is one of the most competent Research Centres in Petroleum Specialities recognized by the Dept. of

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Science and Technology, Government of India. This focus on R&D has paid rich dividends in the form of 9 pioneering products ranging from Petroleum Sulphonates and White Oils to Telecom Cable Filling Compounds.

Investment Rationale
Recovered fast from the slowdown seen in FY09: Like most other industries/companies, SOTL also got impacted by the slowdown in FY09. In addition it also got affected by the Rupee dollar volatility as it imports almost all its raw materials. Given the need for stocking raw materials and the time to import, it got badly impacted by the volatility in raw material prices that could not be passed over to its customers. From H1FY10 onwards, however things stabilised on all fronts raw material price and Rupee dollar rates. This has resulted in sharp turnaround in performance for SOTL in FY10 and FY11 and unless such high volatility in raw material prices and rupee dollar rate returns, such a bad scenario is unlikely to be repeated. Continued investments being made in power sector offers growth in Transformer oil business: Transformer oil accounts for 40-45% of SOTLs revenues. The demand for transformer oils is determined by the development and growth of the power generation and transmission infrastructure in India. The state electricity boards (SEBs) and private players like ABB, Crompton, Alstom, BHEL, Bharat Bijlee are the customers for transformer oil. Its main competitor in this segment is Apar Industries. SOTL along with Apar hold ~70% market share in the domestic market (both holding almost equal share). Other competitors include Raj Petroleum, Sah Petroleum, Columbia, Panama and other unorganized players. Close to 60% of transformer oil sales goes to transformer manufacturers while the balance goes to SEBs. There are a few entry barriers for new players in this segment like raw materials are imported in large quantity, proximity to port, gaining confidence of customers, delivering small quantities to different locations of customers, etc. Planned expenditure on power generation is likely to rise 3 times from the current size in the next two years. For the 11th Plan Rs.6,586.3 bn is planned to be spent on transmission schemes, against Rs.3,402.4 bn in the 10th plan. Typically, out of the transmission and distribution (T&D) investments 65% goes towards transmission and 35 % towards distribution. Around 15% of the investment in Transmission system goes towards transformers. Power transformers account for around 70% of the transformers market where as the distribution transformers constitute around 30%. With increased focus on power related infrastructure, the transformers industry could see high growth rate in volume as well as value terms and this could be a major trigger for boost in SOTLs sales (although there has been a slowdown in transformer segment over the last few quarters due to the Government going slow on orders). Transformer oil is replaced in every 5-6 years, so the demand from replacement market would be uninterrupted. SOTL has shown constant growth of in terms of volumes in the past few years. Though in the recent past, the basic raw material i.e. Base oil, prices has gone up significantly, SOTL has managed to keep its average realization per unit in line with the increase in the input prices. For SOTL volumes have been the key growth driver in the past and we expect the trend to continue.
Particulars Sales volumes Sales (Rs.Cr.) Realisation/Ton Rs. Raw Material - Base oil Rs./ ton EBIDTA/Ton Rs. FY07 173423.0 878.9 50678.0 35291.6 2299.0 FY08 205122.0 982.7 47906.9 30476.6 4405.2 FY09 FY10 FY11 187400.0 249105.0 255035.0 1232.5 1270.5 1685.3 65768.0 51002.6 66081.1 47360.0 29062.5 40448.0 2123.3 5423.0 6294.4 (Source: Company, Capitaline Database)

Improving exports turnover leads to some derisking: SOTL is Indias largest exporter of Petroleum specialty products. Its products are exported to almost all the major countries across the globe. Its export turnover (FOB Value) is consistently increasing y-o-y. In FY06, exports accounted for 13% of SOTLs total turnover, which has grown significantly to 16% in FY09 and FY10. But in FY11 the proportion marginally dipped to 12%. It is continuously focusing on building long term supply arrangements for its multinational customers and expanding deliveries into newer territories. Hence, the exports contribution to total sales could increase over the next 2 years.

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101.0% 81.0% Rs.Cr. 61.0% 41.0% 21.0% 1.0%

Split of Sales
13.3% 15.9% 16.0% 15.9% 15.8% 12.2%

86.7%

84.1%

84.0%

84.1%

84.2%

87.8%

FY06

FY07

FY08 FY09 Period Domestic Exports

FY10

FY11

(Source: Company)

Strong financials & High dividend paying company SOTL has strong financials and this can be gauged from the growth in Sales and Net Profit over the last 5 years. It has reported CAGR of 21% growth in sales and Net Profit CAGR of 24.5%. Its return ratios have improved over a period of time and debt/equity ratio has been well under control.

0.24

45 35

0.16 25 0.08 15 0.00 FY07 FY08 FY09 Period Debt/Equity - LHS ROCE - RHS RONW - RHS
(Source: Company, Capitaline Database)

5 FY10 FY11

SOTL traditionally has been high dividend paying company. Its D/E ratio is low at 0.2:1 as of March 31, 2011. It is consistently rewarding its shareholders by paying rich dividends as from the last 7 years the dividend payout ratio has averaged at ~27%. A generous bonus of 2:3 was also given in FY07.
Year of Dividend 2005 2006 2007 2008 2009 2010 2011 PAT (Rs.Cr) Dividend Amt paid (Rs.Cr) 28.9 8.8 37.5 11.0 47.3 13.1 62.0 16.8 17.3 7.3 86.2 21.9 109.3 29.2 % of Dividend 100 125 90 115 50 150 200 Dividend Payout Ratio - % 18.6 18.3 28.9 28.4 45.5 25.4 26.7
(Source: Capitaline Database)

In FY11 SOTL rewarded a dividend of Rs.20 (including Rs.5 being golden jubilee special dividend), which works out to 5% of dividend yield base on CMP of Rs.400.60. Steady growth of lubricating oil business given the buoyancy in the auto market: SOTL accounts for a small proportion of the lubricants market where it competes with Castrol, Indian Oil, HP and BP but this business accounts for a steady revenue stream (about 25-30% of sales of SOTL) for the company. In technical collaboration

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with Japanese major Idemitsu, it used to manufacture and market Idemitsu lubricants and sell to Honda Siel, Toyota, M&M, Hero Honda, Kinetic and HMSI. Along with this, SOTL also has tie ups with other auto majors for supplying its branded lubricants. These auto companies are constantly posting good numbers year on year. With a double digit growth in twowheelers, four-wheelers and commercial vehicles the demand for auto lubricants is likely to keep rising. Hence, we expect a steadily growing demand for SOTLs lubricant products in the coming years. This is despite the recent termination of technical collaboration agreement with Idemitsu. Currently SOTL has more than 50 C&F depots across India with a network of 30,000+ retailers for delivering lubricants and has established a pan Indian presence as compared to other small players, which are concentrated in regional pockets. About 10% of lubricating oil sales comes from industrial segments (furnace, turbine, etc) while the balance comes from automobiles. SOTL has also started selling lubricant oil under its own brand Savsol. At the macro economic level, given that the basic consumption drivers for lubricants likely GDP growth of more than 8% in FY12, rapid growth in the industries and infrastructure service sectors, good monsoons all are in place this is expected to give a boost to the volume growth in the market. Demand for White Oil and Liquid Paraffin could grow given the sweet spot FMCG/Pharma companies are in: This segment accounts for 25-30% of SOTLs sales and the technology used in this has been developed by SOTL in house. SOTL is the market leader in liquid paraffin. FMCG players Hindustan Lever, Dabur, Marico, Johnson & Johnson and pharma companies like Pfizer and GSK ensure a good market for white oils/liquid paraffin. The main competitors are Raj Oil and Columbia. The products have wide applications in industries like polystyrene, pharmaceuticals and personal care. These oils are also used in agarbattis, baby oils, footwear, etc. Out of 25-30% of sales contributed by this segment to SOTLs sales 5-7% comes out of sales for industrial application and balance from FMCG/Pharma applications. More than 40% of the market share belongs to SOTL in this segment. The FMCG sector is set to grow to US$33.4 bn in 2015. Growth is also likely to come from consumer 'upgrading' in the matured product categories. The fast moving consumer goods (FMCG) segment, the fourth largest sector in the Indian economy, is expected to witness a steady growth of around 15% over the next few years. The FMCG sector, which was not majorily impacted by slowdown last year, could see increased demand from urban areas as the economy gains strength. With the FMCG sector being a major user of SOTLs products, this business is set to expand further.

Industry Overview
Structure and Development Petroleum Products This segment consists of Transformer Oils, White Oils/Liquid Paraffins and Lubricating Oils. The main raw material required for all these products is various grades of Base Oils, which is a refined fraction derived- from Crude Oil. The demand for Transformer Oils is determined by the development and growth of the power generation and transmission infrastructure within the country. The market for cosmetics, Pharmaceuticals and personal care products determines the demand for Liquid Paraffins and White Oils. Automotive, Industrial and Marine Applications constitute the three major sectors of the Indian lubricant industry. The general industrial and economic conditions decide the demand for lubricant products in these three sectors. The Petroleum Products segment is competitive with the presence of both domestic and multinational companies vying for a share of the market. The higher than expected growth, observed in both developed and emerging economies during FY11, has raised hopes for a sustained global recovery. However, the fear of emerging high Crude Oil prices is the biggest threat to this recovery. Some of other risks to global growth remain in the form of weak sovereign balance sheets, frail markets in the Euro area and geopolitical uncertainties in advanced economies. Lubricants Lubricant demand has recorded a CAGR of around 5 per cent over the past 5 years, due to high growth in the automobile and industrial sectors, resulting in high primary demand. In the lubricants industry, the top four players hold over 90% market share, which has resulted in a high level of concentration in the industry. The margins of companies have also been comfortable, barring a few occasions when raw material price movements have been volatile. Operating profits of the players has been consistently rising due to significant pricing power and strong marketing network. Lubricant Industry Segmentation The lubricant industry can be divided into two major categories i.e., Automotive & Industrial brand of lubricants. The industrial segment basically comprises of Core Sector industries like Defence, Railways, State Transport Undertakings, Steel Plants, Coal Mines, Fertilisers, Power Houses, Chemicals & Heavy Engineering Industries. In the industrial segment, the PSUs could successfully maintain their stronghold due to the reasons that the requirement is most end use specific, customer focussed, productivity linked & service oriented. Here, price, quality, performance track record, R&D infrastructure for technology upgradation and product development for end use specific application & after sales service play the most significant role & FMCG techniques of promotion and creating illusions takes a back seat.

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Risks and concerns

Since base oil is derived from crude oil, it is subjected to the volatility in crude oil prices. Though most contracts entered into by SOTL are with price variation clauses, any sharp volatility in oil prices in a short period of time could hit SOTLs margins. SOTL has a long working capital cycle for debtors of about 3-3.5 months and this could hamper free cash flow available with the company. SOTL imported raw materials worth Rs.907 cr in FY11 (while its exports were Rs.219 cr). Hence, depreciation in value of rupee vs the dollar could raise its costs and impact its margins. Further SOTL has borrowed Rs.51.7 cr as of Mar 2011 by way of foreign currency loans. Further at any point there are large creditors who have to be paid in foreign currency for import of raw materials. Though SOTL takes partial forward cover, it may be insufficient in case of large swings in the Rupee dollar rate. In Q2FY11, SOTL debited a sum of Rs.26.44 cr to the P&L account towards foreign exchange fluctuations. SEBs are large customers for SOTL. Deteriorating financial condition of SEBs could impact the orderflow and recoveries for SOTL.

Financial Performance
Particulars Net Sales Other Operating Income Total Operating Income Expenditure Raw Materials consumed Staff Cost Other Expenditure Total Opex Operating Profit OPM % Other Income Interest Exps Depreciation PBT PBTM % Tax Effective Tax Rate % PAT PATM % Equity Capital EPS Q2FY12 480.3 7.6 488.0 398.4 6.3 45.2 449.9 38.1 7.9% 2.1 1.3 5.8 33.1 6.9% 10.0 30.2% 23.1 4.8% 14.6 15.8 Q2FY11 368.3 4.8 373.1 274.1 5.9 44.7 324.7 48.4 13.1% 4.0 1.7 6.3 44.4 12.1% 14.4 32.4% 30.0 8.2% 14.6 20.6 % Chg 30.4% 57.4% 30.8% 45.3% 7.0% 1.1% 38.6% -21.4% -47.4% -22.5% -8.4% -25.6% -30.6% -23.1% 0.0% -23.1% Q1FY12 432.5 4.0 436.5 333.0 6.3 47.4 386.6 49.8 11.5% 2.2 1.8 5.7 44.6 10.3% 14.7 33.0% 29.9 6.9% 14.6 20.5 % Chg 11.1% 91.0% 11.8% 19.7% -0.2% -4.7% 16.4% -23.7% -4.5% -25.1% 1.8% -25.9% -32.1% -22.8% 0.0% -22.8% Q4FY11 426.0 6.8 432.8 328.0 6.4 46.5 380.8 52.0 12.2% 3.0 1.5 6.5 47.1 11.0% 14.4 30.6% 32.7 7.7% 14.6 22.4 % Chg 1.5% -41.2% 0.9% 1.5% -0.8% 2.0% 1.5% -4.2% -26.1% 18.2% -12.1% -5.2% 2.4% -8.5% 0.0% -8.5% Q3FY11 407.5 5.4 412.9 314.8 5.5 45.6 365.8 47.0 11.5% 2.9 1.5 6.5 41.9 10.3% 13.3 31.6% 28.7 7.0% 14.6 19.6

Rs.Cr. % Chg 4.5% 26.7% 4.8% 4.2% 15.9% 1.9% 4.1% 10.6% 3.8% -2.6% 0.0% 12.3% 8.4% 14.0% 0.0% 14.0% Rs.Cr. Q2FY12 471.3 18.1 0.7 490.1 25.9 10.2 36.1 1.3 1.7 33.1 339.7 95.5 13.0 448.1 Q2FY11 363.8 10.5 2.8 377.1 42.1 5.1 47.2 1.7 1.1 44.4 271.7 89.6 6.4 367.8 % Chg 29.5% 72.9% -74.6% 30.0% -38.4% 99.2% -23.5% -22.5% 59.8% -25.6% 25.0% 6.5% 101.7% 21.8% Q1FY12 428.6 9.3 0.8 438.7 44.1 3.9 48.0 1.8 1.7 44.6 377.2 76.8 -29.0 425.0 % Chg 10.0% 94.7% -7.7% 11.7% -41.3% 163.0% -24.8% -25.1% 3.0% -25.9% -9.9% 24.3% -144.7% 5.4% Q4FY11 430.6 3.5 1.7 435.8 51.5 -2.3 49.2 1.5 0.6 47.1 332.6 83.5 26.0 442.0 % Chg -0.5% 168.2% -54.1% 0.7% -14.3% -266.8% -2.4% 18.2% 159.4% -5.2% 13.4% -8.0% -211.6% -3.9% Q3FY11 409.9 4.2 1.7 415.7 47.2 -2.2 45.0 1.5 1.6 41.9 314.2 77.2 5.0 396.4 % Chg 5.1% -17.4% 1.8% 4.8% 9.0% 4.5% 9.3% -2.6% -59.7% 12.3% 5.9% 8.1% 423.2% 11.5%

(Source: Company)

Segmental Performance
Particulars Segment Revenue Petroleum Products Wind Power Other Unallocated Net Sales Segment Results Petroleum Products Wind Power Total Less: (a) Interest Other Unallocable exp / (income) PBT Segment Capital Employed Petroleum Products Wind Power Unallocated capital employed Total

(Source: Company)

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Peer Comparison
Company Apar Industries Castrol# SOTL
# = CY ending company

Sales 3028.3 2734.7 1526.5

OPM% PATM% FY11 6.2% 26.8% 11.9% 3.1% 17.9% 7.2%

EPS 29.5 19.8 74.9

Sales OPM% PATM% 6MFY12 1424.6 2212.3 912.8 2.7% 2.0% 23.2% 16.9% 9.6% 5.8%

EPS

FV

BV FY11

CMP

P/E P/BV D/E FY11 6MFY12FY11 FY11 10.9 4.4 13.6 10.3 11.0 1.8 0.3 0.0 0.2

7.91424.6 15.12212.3 36.3 912.8

26.4 115.2 3.9 40.0 412.2 20.8 218.9 400.6 5.3

(Source: Company, Capitaline Database)

SOTL has better profitability ratios compared to Apar and its earnings stream is less volatile. SOTL quotes at a discount to valuation given to Castrol as Castrol is an MNC, its brand has better recall/value, its working capital requirement is efficient, it has no debt and in profitability ratios are much healthier.

Conclusion
The significant power capacity addition and investment planned in the XI plan for the transmission segment illustrates the growth potential for companies like SOTL who generate their major revenues from sale of tranformer oil to power companies. Lubricating oils and other specialty oils are likely to contribute steadily both to the top-line and the bottom-line. With all the three sectors to which SOTL caters expected to do well we believe that SOTL could continue to sustain their performance in the near future. The company has planned a new grass root manufacturing facility at Silvassa with phase-I capacity of 70,000 tonnes with a capex of Rs.40-50 cr. The plant is expected to commission around April 2012. After touching a high of Rs.707 in July 2011, SOTL has corrected sharply to reflect the slowdown in growth, rising uncertainity globally, weakening Rupee etc. SOTL made a low of Rs.370 in Dec 2011. We feel that the correction in the stock is more than warranted and there is an opportunity to ride an upmove in the stock based on the short term improvement in sentiments and stability in the Rupee Dollar rate. Further the recent relaxation by the Ministry of Corporate Affairs for corporates has eased an accounting rule on foreign exchange losses, allowing these to be taken on the books over the period of foreign exchange loans. At the CMP, the stock is trading at 5.3x FY12E EPS of Rs.75.2. Given the decent outlook on its business, its consistent profitability, attractive dividend yield and high return ratios, we feel SOTL can get higher discounting in the near term. We feel investors could look to buy the stock in the Rs.401-393 band (5.3x - 5.2x FY12E EPS) for a target of Rs.451 (6.0x FY12E EPS) over 4-6 weeks.

Quick Financial Estimates

Particulars Operating Income PBIDT PBIDTM% PAT PATM% EPS PE (x) * Quick Estimates FY08 919.0 90.4 9.8% 62.0 6.7% 42.4 9.4 FY09 1150.8 39.8 3.5% 17.3 1.5% 11.8 33.9

Rs.Cr. FY10 FY11 FY12E 1167.4 1526.7 1860.0 135.1 160.5 176.7 11.6% 10.5% 9.5% 85.4 109.3 109.7 7.3% 7.2% 5.9% 56.7 74.9 75.2 7.1 5.3 5.3 (Source: Capitaline Database, Company)

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Technical View:

As seen from the weekly chart above, SOTL has taken support at 50% retracement level of previous big upmove, which comes at Rs.391 level (calculated on weekly closing basis). Over the last three weeks the stock has not closed below Rs.391 level. The stock is trading above its 200 week exponential moving average. The recent bottom of Rs.370.2 (formed in week ended December 23) happened to be in the 145th week (which is a Fibonacci number 144+1) from the previous bottom formed in March 2009. Hence this bottom should hold for some time. Its Stochastic is trading near its oversold region and also its RSI is in verge of giving breakout on the upper side giving bullish signals. On daily chart the stock is trading above downward sloping trend line. On monthly chart, the stock made a top at Rs.390 level in Dec 2007 and now in Dec 2011 / Jan 2012 it has taken support at around these levels. According to change of polarity principles the stock could take support from the previous top. The stock could face resistance around Rs.460, which is a 38.2% retracement level of the previous upmove (calculated on weekly closing basis) and bottom of previous small up move. The stock has good support around at Rs.380. One can look to buy SOTL at the CMP of Rs.400.60 for a target of Rs.460 over the next 2-4 weeks with a stop loss of Rs.382.

Analyst: Sneha Venkatraman (sneha.venkatraman@hdfcsec.com)

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Corporate Office: HDFC Securities Limited, I Think Techno Campus, Building B, Alpha, Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042 Fax: (022) 30753435 Website: www.hdfcsec.com Email: hdfcsecretailresearch@hdfcsec.com Disclaimer: This document has been prepared by HDFC Securities Limited and is meant for sole use by the recipient and not for circulation. This document is not to be reported or copied or made available to others. It should not be considered to be taken as an offer to sell or a solicitation to buy any security. The information contained herein is from sources believed reliable. We do not represent that it is accurate or complete and it should not be relied upon as such. We may have from time to time positions or options on, and buy and sell securities referred to herein. We may from time to time solicit from, or perform investment banking, or other services for, any company mentioned in this document. This report is intended for Retail Clients only and not for any other category of clients, including, but not limited to, Institutional Clients

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