COMPANY INITIATING REPORT

RETAIL EQUITY RESEARCH

JK Tyre & Industries Ltd.
Auto Ancillary
BSE CODE: 530007
Bloomberg CODE: JKI:IN
BUY
Rating as per Mid Cap 12 month investment period
NSE CODE: JKTYRE
CMP Rs179 TARGET Rs212 RETURN 18%
SENSEX: 31,191

06th June, 2017

Radialisation trend catching up fast… Company Data

Market Cap (cr) Rs4,070
JK Tyre & Industries Ltd (JK Tyre) has been in the business of manufacturing and selling
tyres since its inception in 1977. Further, JK Tyre derives ~86%/14% of its revenues from Enterprise Value (cr) Rs9,395
Indian/Mexican markets. It commands a dominant market share of 28% in truck tyre Outstanding Shares (cr) 22.7
segment.
Free Float 48%
 JK Tyre is the major beneficiary of the radialisation trend gaining pace in the truck and
Dividend Yield 1.4%
bus segment. Radials now account for 44% share as against a meagre 6% share in FY09.
 With an entry into the lucrative 2W space through the acquisition of Cavendish 52 week high Rs185
Industries Limited (CIL), JK Tyre has become a full-range tyre player. 52 week low Rs83
 India business is expected to grow at a CAGR of 10% over FY17-19E driven by 6m average volume (cr) 0.2
enhanced capacities & acquisition of CIL. Beta 1.5
 D/E ratio is expected to decline from 2.5x in FY17 to 1.6x by FY19E owing to strong free Face value Rs2
cash flow generation to the tune of Rs1747cr over FY18-19E.
Shareholding % Q2 FY17 Q3 FY17 Q4 FY17
 We initiate JK Tyre with a “BUY” rating valuing the stock at 9x FY19E EPS arriving at a
target price (TP) of Rs212. Promoters 52.3 52.3 52.3
FII’s 12.2 12.7 11.6
Rising CV radialisation bodes well for JK Tyre MFs/Insti 1.8 1.9 2.0
JK Tyre is well poised to benefit from the radialisation story in India as it is the largest Public 15.5 16.3 16.9
player with 28% market share in truck tyre segment. Notably, the radialisation levels have Others 18.2 16.8 17.2
increased from 6% in FY09 to 44% in FY16. Owing to benefits like better mileage &
Total 100.0 100.0 100.0
durability, radialisation trend in truck & bus segment is expected to catch up at a rapid pace
and is likely to reach around 77% by FY21E. JK Tyre’s share of radial tyres revenue has Price Performance 3mth 6mth 1 Year
increased from 46% in FY14 to 58% in FY16. With the completion of expansion project at its Absolute Return 44% 46% 107%
Chennai plant, the TBR/PCR capacity has increased to 2.3mn/10mn tyres per annum.
Absolute Sensex 7% 18% 16%
Further, CIL acquisition would expand its presence in truck radials segment with an
incremental capacity of 1.2mn tyres per annum. Thus, we expect India business (contributes Relative Return* 37% 28% 91%
86% to the consolidated revenues) to witness a CAGR of 10% over FY17-19E largely driven *over or under performance to benchmark index
by enhanced capacities coupled with rising radialisation levels.
Foray into two-wheeler segment has completed the portfolio
With the acquisition of CIL, JK Tyre has forayed into the fast-growing 2/3 wheeler category
(6.3mn tyres per annum). The entry into the 2Ws space not only helps JK Tyre in becoming a
full-range tyre maker but also allows the company in penetrating rural markets. JK Tyre has
launched premium 2 and 3-wheeler tyres under the brand ‘Blaze’. Notably, the product has
been received well in the market. Currently, 2W tyres contribute nearly 5% to the total
revenues & the company is targeting to double the contribution over the next 2 years.
Turnaround of Cavendish acquisition to drive growth ahead
Y.E Mar (Rs cr) FY17 FY18E FY19E
Within one year of acquisition, JK tyre has managed to turnaround CIL. CIL turned PBT
positive in Q4FY17 led by employee rationalisation & reduction in conversion costs. While Sales 7,689 8,794 9,880
TBR capacity for JK Tyre (excluding CIL) is being fully utilised, the utilisation level of TBR Growth (%) 11.5 14.4 12.4
capacity at CIL has improved to 70-80% since acquisition. More importantly, CIL acquisition EBITDA 1,132 1,231 1,463
has enhanced the domestic capacity by 55% to 1,770 tonnes per day. JK tyre got an access to
three factories located at Laksar (Haridwar) where the company would enjoy tax benefits up EBITDA Margin % 14.7 14.0 14.8
to 2020. PAT Adj. 306 351 535
Leverage ratio set to decline from FY18E onwards as no capex plans on the anvil Growth (%) -36.2 14.5 52.5
As domestic capacity has increased by 55% with the acquisition of CIL, JK Tyre has no major
Adj.EPS 13.5 15.5 23.6
capex lined up in the medium term. The debt/equity ratio rose from 1.5x in FY16 to 2.5x in
FY17 as the company has funded major part of CIL’s acquisition through debt. However, the Growth (%) -36.2 14.5 52.5
strong free cash flow generation to the tune of Rs1747cr over FY18-19E would help in P/E 13.3 11.6 7.6
improving the leverage ratio to 1.6x in FY19.
P/B 2.1 1.8 1.5
Valuations
Given JK Tyre’s dominant position in TBR segment coupled with robust brand equity, we EV/EBITDA 8.2 7.2 5.8
expect revenue to grow at a CAGR of ~13.4% over FY17-19E. However, PAT is expected to ROE (%) 16.5 16.7 21.7
grow at a CAGR of ~32% on account of low base effect. We initiate JK Tyre with a ‘BUY’
D/E 2.5 2.1 1.6
rating with a TP of Rs212 at 9.0x FY19E EPS.
Valuations
Our target price of Rs212 is based on 9x FY19E EPS.
Over the past three years, the stock has traded between
2-11x one-year forward earnings, whilst its three-year
average is ~7x. Our target multiple (9.0x) is at a
premium of 28% to JK Tyre’s past three year average PE
multiple. We are upbeat on the stock owing to several
factors: a) diversified product mix with a greater focus
on radialisation, b) holds dominant market share of 28%
in TBR space, c) capacity expansion & CIL acquisition to
drive volume growth, d) strong replacement demand
and e) poised to enter the growth phase with India
business expected to witness a healthy CAGR of 10%
over FY17-19E.
Peers like Apollo Tyres, at 12.2x/10.1x for
FY18E/FY19E and CEAT, at 17.9x/14.1x for
FY18E/FY19E, are valued far higher. Ceat enjoys a
premium multiple (valued at 13.0x FY19 EPS) over JK
Tyre as Ceat is relatively less leveraged (FY17 D/E ratio
of Ceat was 0.4x versus JK Tyre’s 2.5x). However, with
higher sales, better margin & return ratios profile, we
believe the steep discount to Ceat’s multiple is
unwarranted.
P/E one year forward
Investment Rationale
A well-diversified product portfolio
The company’s diverse product portfolio spans across
the entire range including truck & bus, passenger cars,
light trucks, agriculture & off-the road tyres. With the
latest acquisition of Cavendish Industries, JK Tyre has
forayed into two & three-wheeler space. This
acquisition not only helps JK tyre in becoming a full-
range tyre maker but also allows the company in
penetrating rural markets. It is the largest player in the
truck tyre segment with 28% market share. Notably,
truck & bus segment contributes the maximum 67% to
the total revenue followed by passenger car (15%), light
truck (12%), farm (4%) and OTR & others (2%)
segments. Notably, JK Tyre is a pioneer in the
implementation of radialisation in the tyre industry.
Over the past several years, JK Tyre has added clients to
its OEM portfolio across categories, showcasing its R&D
capabilities. The company is consistently investing in
upgrading its technological capabilities and R&D to
deliver high-quality, innovative and specialized
products across categories.
Comprehensive product portfolio

Source: Bloomberg, Geojit Research; Note: SD is Standard Deviation

Source: Company, Geojit Research

Peer comparison Revenue breakdown by product

Company Sales (cr) EBITDA Margin %
FY17 FY18E FY19E FY17 FY18E FY19E
JK Tyre 7,689 8,794 9,880 14.7 13.5 14.5
Apollo Tyre 13,180 15,310 17,701 14.0 13.5 14.0
Ceat 5,767 6,467 7,502 11.4 12.0 12.7

Company P/E ROE%

FY17 FY18E FY19E FY17 FY18E FY19E
JK Tyre 13.3 11.6 7.6 16.5 15.4 21.3
Apollo Tyre 11.5 12.2 10.1 16.3 13.4 14.5 Source: Company, Geojit Research
Ceat 20.0 17.9 14.1 16.7 16.1 17.6
Source: Bloomberg, Geojit Research;
Many first to its credit Consolidated revenue break up by market (%)
JK Tyre was the first player in India to launch radial
technology for entire range (passenger car, LCV, bus,
truck and tractors). Further, it was also the first
company to launch V-Rated eco-friendly tyres with high
performance.
Impressive customer base & extensive
distribution network
JK Tyre has global presence in 100 countries spread
across six continents. The company generates 35% of its Source: Company, Geojit Research
revenue from OEMs, 56% from replacement market and
Rising radialisation levels to help in sustaining
9% from exports. It has consistently added new
the leadership position
customers and supplies to most of the OEMs in truck,
JK Tyre is well poised to benefit from the radialisation
passenger car, truck, tractor & OTR categories. JK Tyre
story in India. JK Tyre is the largest player with 28%
is a partner to some of the renowned OEMs including
market share in truck tyre segment. The radialisation
Tata Motors, Ashok Leyland, M&M, Volvo Eicher,
levels have increased from 6% in FY09 to 44% in FY16.
Maruti Suzuki, General Motors, Volkswagen, BEML &
Further, radialisation in truck & bus segment is
Caterpillar India. The company has 143 JK Tyre selling
expected to increase at a rapid pace and is likely to
points which service the growing needs of about 4,000
touch around 77% by FY21E. JK Tyre’s share of radial
dealers (1,000 exclusive) across India. Further, the
tyres revenue has increased from 46% in FY14 to 58% in
company markets products through 25 ‘JK Tyre Truck
FY16. Notably, radial tyres enjoy better margins when
Wheels’ (fully equipped tyre service centre). Moreover,
compared to margins of bias tyres.
it has about 230 one stop retail & tyre care outlets called
JK Tyre commands leadership position in TBR space
‘JK Tyre Steel Wheels’ which generate significant
portion of PCR sales.
Diversified customer base

Source: Company, Geojit Research

Radialisation trend on the rise

Source: Company, Geojit Research

New products launched over the years

FY16 121
FY15 63
FY14 65
FY13 62
FY12 40
Source: Company, Geojit Research Source: Company, Geojit Research
Truck tyre demand to revive
JK Tyre is India’s largest player with 28% market share
in truck tyre segment. Importantly, during the past five
fiscals (FY11-16), demand for truck tyre has been almost
flat when compared to long-term average of 6-7%.
However, going forward, we expect truck tyre demand
to revive & register a CAGR of ~6% over FY16-19E on
account of four factors: (1) shift towards large trucks, (2)
government focus on infrastructure development, (3)
stricter vehicle scrappage policy & (4) shift to stricter
emission norms will drive the fleet demand.
India Truck tyre demand to witness a CAGR of 6% during
FY16-19E
Source: Industry, Geojit Research; Note: figures are in million units
Cavendish Acquisition – The next growth engine
In 2015, JK Tyre acquired Cavendish Industries Ltd
(CIL), a unit of Kesoram Industries, for Rs2,195cr.
Notably, since May, 2016, JK Tyre has started to
consolidate the financials of CIL (acquisition impact)
onto the overall financials of the company. The deal has
added a capacity to produce 10mn tyres a year and
hence the total manufacturing capacity in India will
increase to 27mn units a year. More importantly, this
acquisition has provided JK tyre an entry point into the
fast-growing 2/3 wheeler category. Interestingly, CIL
has a capacity of 6.3mn tyres per annum in this
category. The foray into the 2Ws space not only helps JK
Tyre in becoming a full-range tyre maker but also
allows the company in penetrating rural markets. JK
Tyre has launched premium two and three-wheeler
tyres under the brand ‘Blaze’. Notably, the product has
been received well in the market. Currently, 2W tyres
contribute nearly 5% to the total revenues & the
company is targeting to double the contribution over
the next two years. Further, this acquisition would
expand its presence in truck radials segment with an
incremental capacity of 1.2mn tyres.
…Turnaround of Cavendish to aid growth
The operations of CIL have turned around & it posted a
profit in its very first year of operations led by
employee rationalisation & reduction in conversion
costs. Notably, the utilisation levels of CIL’s units
manufacturing truck radials have gone up to 70-80%
since acquisition. JK tyre got an access to three factories
located at Laksar (Haridwar) where the company would
enjoy tax benefits up to 2020.
Chinese imports on the downtrend
Imports of the Chinese tyres have been severely hurt by
the demonetisation drive. Further, the government is
mulling to impose anti-dumping duty on imported
Chinese truck radial tyres. This can further improve
both volumes and realisations for Indian TBR players.
India revenue to grow at 10% CAGR over FY17-19E
Source: Company, Geojit Research
Mexican operations to witness an improving trend
In 2008, JK Tyre acquired Mexican tyre-maker Tornel in
order to gain free access to the North American markets.
Mexico business contributed 14% to the total
consolidated revenues in FY16. It has over 85% market
share in Light Commercial Vehicles (LCVs) bias, 88%
market share in truck bias and 8% market share in
passenger line radials. It also supplies farm and
industrial tyres. It has 3 manufacturing plants in Mexico
& the total capacity is around 8.3mn tyres p.a. in PCR,
truck bias and other tyres segments. Over the last 8
years, the capacity utilisation levels have increased from
40% to 70%. In FY16, JK Tyre has increased capacity in
PCR segment by 1.5mn tyres. We expect the Mexican
operations to register revenue CAGR of ~15% during
FY17-19E aided by enhanced capacity.
 Mexico revenue to grow at 15% CAGR over FY17-19E
Source: Company, Geojit Research
Financials
Enhanced capacity to aid JK Tyre’s overall
revenue growth
During FY12-16, JK Tyre posted flat revenue CAGR of
0.6% due to sluggish performance of the Indian
business. The Indian business registered a CAGR of just
1.8% over FY12-16 due to two major factors: a) decline
in M&HCV volumes during FY12-14 (recovery
witnessed from FY15 onwards) & b) lower TBR volumes
due to Chinese dumping. However, during FY17-19E,
we estimate overall revenue to witness a healthy CAGR
of 13% primarily driven by Indian business. We expect
India business (contributes 86% to the consolidated
revenues) to witness a CAGR of 10% over FY17-19E
largely driven by enhanced capacities (domestic
capacity has increased by 55% with CIL acquisition) &
rising radialisation levels. Further, truck tyre demand is
expected to pick-up owing to robust replacement
demand. Notably, truck & bus segment contributes the
maximum 67% to the total revenue. While we expect
M&HCV segment to grow at ~8% CAGR over FY16-
19E, we expect truck tyre demand to revive & register a
CAGR of ~6% over FY16-19E.
Overall revenue to grow at 13% CAGR during FY17-19E
Source: Company, Geojit Research
EBITDA margin to remain tepid
JK Tyre’s EBITDA margin has increased from 4.8% in
FY12 to 16.2% in FY16 on account of rising radialisation
level & lower natural rubber prices (account for ~50% of
the overall raw material costs). Notably, the average
rubber prices have declined from ~Rs210/kg in FY12 to
~Rs115/kg in FY16. Further, higher proportion of
revenues coming from value-added radial tyres has
supported the margins. While the radialisation levels is
expected to inch up to 67% in FY19E, any uptick in
natural rubber prices would arrest any gains in margins.
Interestingly, JK Tyre has been undertaking regular
price hikes (increased prices by ~6-9% in the last seven
months) to offset the higher raw material costs. Thus,
we expect EBITDA margins to hover around
14.0%/14.8% levels in FY18E/FY19E.
EBITDA margin to recover in FY19E
Source: Company, Geojit Research
PAT to grow at 32% CAGR over FY17-19E
In FY16, Adj. PAT stood at Rs480cr, reporting a growth
of ~33% CAGR over FY13-16. PAT margin improved by
190bps to 7.0% YoY in FY16. We expect Adj. PAT to
grow at a CAGR of ~32% over FY17-19E on account of
low base effect.
PAT to grow at 32% CAGR over FY17-19E
Source: Company, Geojit Research
Comfortable balance sheet
Barring FY13, JK Tyre has been generating strong Consolidated revenue break up by geography (%)
operating cash flows (OCF) over the years. During
FY12-16, OCF has grown at a CAGR of ~26%. Notably,
JK Tyre improved its solvency ratios significantly over
FY12-16. Net debt to equity ratio declined from 2.8x in
FY12 to 1.5x in FY16. However, the leverage ratio rose
to 2.5x in FY17 as the company has funded major part of
CIL’s acquisition through debt. With no major capex
plan on the anvil (domestic capacity has increased by Source: Company, Geojit Research
55% with CIL acquisition) coupled with strong free cash Key Risks:
flow generation to the tune of Rs1747cr over FY18-19E,  Any sharp increase in natural rubber prices
we expect leverage ratio to improve from the current could negatively impact the margins.
levels to 1.6x in FY19.
 High competition from China in the TBR
Return ratios trend segment.
 Weak demand in the M&HCV segment.

Source: Company, Geojit Research

JK Tyres: Business Overview

JK Tyre & Industries Ltd (JK Tyre) is one of the leading
tyre manufacturers in the country. The company
derives 86% & 14% of its revenues from India and
Mexico markets respectively. It commands leadership
position in the Indian truck and bus radial tyre segment,
with a market share of 28%. The product profile spans
the entire range including passenger cars, utility
vehicles, light trucks, truck & bus, agriculture & off-the
road tyres. With the acquisition of CIL, ATL forayed
into two-wheeler segment. Its key brands include JK
Tyre, Vikrant and Tornel. JK Tyre has 12 manufacturing
locations spread across India (9) & Mexico (3). It has a
total production capacity of 2,110 tonne per day.
 Consolidated Financials

Profit & Loss Account Balance Sheet

Y.E March (Rs cr) FY15A FY16A FY17A FY18E FY19E Y.E March (Rs cr) FY15A FY16A FY17A FY18E FY19E
Sales 7,384 6,898 7,689 8,794 9,880 Cash 191 139 295 228 257
% change -3.5% -6.6% 11.5% 14.4% 12.4% Accounts Receivable 1,435 1,403 1,795 1,937 2,176
EBITDA 931 1,117 1,132 1,231 1,463 Inventories 875 873 1,320 1,430 1,577
% change 6.8% 20.0% 1.4% 8.7% 18.8% Other Cur. Assets 460 336 650 719 793
Depreciation 158 216 291 312 317 Investments 140 160 79 79 79
EBIT 773 900 841 919 1,146 Gross Fixed Assets 4,828 6,089 8,390 8,665 8,815
Interest 257 252 440 419 380 Net Fixed Assets 2,701 3,747 5,788 5,752 5,585
Other Income 17 24 65 33 44 CWIP 830 106 326 150 100
PBT 532 672 466 533 810 Intangible Assets - - - - -
% change 22.7% 26.3% -30.7% 14.4% 51.8% Def. Tax (Net) (320) (508) (586) (586) (586)
Tax 162 203 155 178 270 Other Assets 271 288 371 371 371
Tax Rate (%) 30.4% 30.2% 33.3% 33.3% 33.3% Total Assets 6,584 6,544 10,038 10,080 10,351
Reported PAT 330 467 375 351 535 Current Liabilities 1,798 1,744 2,061 2,271 2,540
Adj.* (47) (13) 69 - - Provisions - - - - -
Adj. PAT 377 480 306 351 535 Debt Funds 2,975 2,660 5,376 4,926 4,476
% change 16.8% 27.5% -36.2% 14.5% 52.5% Other Liabilities 411 389 491 491 491
No. of shares (cr) 22.7 22.7 22.7 22.7 22.7 Equity Capital 45 45 45 45 45
Adj EPS (Rs) 16.6 21.2 13.5 15.5 23.6 Reserves & Surplus 1,356 1,706 1,919 2,195 2,642
% change 16.8% 27.5% -36.2% 14.5% 52.5% Shareholder’s Fund 1,401 1,751 1,965 2,240 2,687
DPS (Rs) 1.5 2.5 2.5 2.8 3.2 Minority Interest - - 145 151 157
Total Liabilities 6,584 6,544 10,038 10,080 10,351
BVPS (Rs) 61.8 77.2 86.6 98.8 118.5

Cash flow Ratios

Y.E March (Rs cr) FY15A FY16A FY17A FY18E FY19E Y.E March FY15A FY16A FY17A FY18E FY19E
Pre-tax profit. 486 669 536 535 811 Profitab. & Return
Depreciation 158 196 291 312 317 EBITDA margin (%) 12.6 16.2 14.7 14.0 14.8
Changes in W.C (51) (66) (837) (111) (191) EBIT margin (%) 10.5 13.1 10.9 10.5 11.6
Others 272 264 618 386 336 Net profit mgn.(%) 5.1 7.0 4.0 4.0 5.4
Tax paid (131) (160) (155) (178) (270) ROE (%) 30.1 30.5 16.5 16.7 21.7
C.F.O 734 903 454 944 1,004 ROCE (%) 19.3 21.0 15.2 12.9 16.3
Capital exp. (810) (559) (2,520) (100) (100) W.C & Liquidity
Change in inv. 10 3 81 - - Receivables (days) 65.6 68.2 81.0 75.3 75.3
Other invest.CF 0 50 65 33 44 Inventory (days) 52.6 59.7 79.2 73.8 73.7
C.F - investing (800) (506) (2,374) (67) (56) Payables (days) 59.6 60.3 67.6 64.6 65.2
Issue of equity - - - 0 - Current ratio (x) 1.6 1.6 2.0 1.9 1.9
Issue/repay debt - - 2,716 (450) (450) Quick ratio (x) 1.2 1.1 1.3 1.3 1.3
Dividends paid (24) (41) (68) (75) (88) Turnover &Levg.
Other finance.CF 23 (381) (572) (419) (380) Gross asset T.O (x) 1.5 1.2 1.0 1.0 1.1
C.F - Financing (1) (422) 2,076 (944) (919) Total asset T.O (x) 1.1 1.0 0.8 0.8 0.9
Chg. in cash (67) (25) 156 (68) 29 Adj. debt/equity (x) 2.1 1.5 2.5 2.1 1.6
Closing cash 191 139 295 228 257 Valuation ratios
EV/Sales (x) 0.9 1.0 1.2 1.0 0.9
EV/EBITDA (x) 7.4 5.9 8.2 7.2 5.8
P/E (x) 10.8 8.5 13.3 11.6 7.6
P/BV (x) 2.9 2.3 2.1 1.8 1.5
 Recommendation Summary Dates Rating Target
06-June-2017 BUY 212

Source: Bloomberg, Geojit BNP Paribas Research

Large Cap Stocks; Mid Cap and Small Cap;

Buy - Upside is 10% or more. Buy - Upside is 15% or more.
Hold - Upside or downside is less than 10%. Accumulate* - Upside between 10% - 15%.
Reduce - Downside is 10% or more. Hold - Absolute returns between
0% - 10%.
Reduce/Sell - Absolute returns less than
0%.
To satisfy regulatory requirements, we attribute
‘Accumulate’ as Buy and ‘Reduce’ as Sell.
The recommendations are based on 12 month horizon, unless otherwise specified. The investment ratings are on absolute positive/negative return basis. It is
possible that due to volatile price fluctuation in the near to medium term, there could be a temporary mismatch to rating.
* For reasons of valuations/return/lack of clarity/event we may revisit rating at appropriate time. Please note that the stock always carries the risk of being
upgraded to BUY or downgraded to a HOLD, REDUCE or SELL.
Geojit Financial Services Limited has outsourced the preparation of this research report to DION Global Solutions Limited whose relevant disclosures are
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Dion confirms that:

(i) It/its associates have no financial interest or any other material conflict in relation to the subject company (ies) covered herein at the time of publication of this report.

(ii) It/its associates have no actual / beneficial ownership of 1% or more securities of the subject company (ies) covered herein at the end of the month immediately
preceding the date of publication of this report.

Further, the Research Analyst confirms that:

(i) He, his associates and his relatives have no financial interest in the subject company (ies) covered herein, and they have no other material conflict in the subject
company at the time of publication of this report.

(ii) He, his associates and his relatives have no actual/beneficial ownership of 1% or more securities of the subject company (ies) covered herein at the end of the month
immediately preceding the date of publication of this report.

2. Disclosures regarding Compensation:

During the past 12 months, Dion or its Associates:

(a) Have not managed or co-managed public offering of securities for the subject company (b) Have not received any compensation for investment banking or merchant banking
or brokerage services from the subject company (c) Have not received any compensation for products or services other than investment banking or merchant banking or
brokerage services from the subject. (d) Have not received any compensation or other benefits from the subject company or third party in connection with this report

3. Disclosure regarding the Research Analyst’s connection with the subject company:

It is affirmed that I, Rohit Joshi employed as Research Analyst by Dion and engaged in the preparation of this report have not served as an officer, director or employee of the
subject company

4. Disclosure regarding Market Making activity:

Neither Dion /its Research Analysts have engaged in market making activities for the subject company.

Copyright in this report vests exclusively with Dion.

ROHIT JOSHI
Digitally signed by ROHIT JOSHI
DN: c=IN, o=Personal, cn=ROHIT JOSHI,
serialNumber=5180587d88e0e6997d180a4b21afe3b9c77d53632e69f1f2225fb732909332e0,
postalCode=226006, st=UTTAR PRADESH
Date: 2017.06.06 17:40:25 +05'30'

Geojit Financial Services Ltd. (formerly known as Geojit BNP Paribas Financial Services Ltd.), Registered Office: 34/659-P, Civil Line Road, Padivattom,
Kochi-682024, Kerala, India. Phone: +91 484-2901000, Fax: +91 484-2979695, Website: geojit.com. For investor queries: customercare@geojit.com, For
grievances: grievances@geojit.com, For compliance officer: compliance@geojit.com.

Corporate Identity Number: L67120KL1994PLC008403, SEBI Regn.Nos.: NSE: INB/INF/INE231337230 I BSE:INB011337236 & INF011337237 | MSEI:
INE261337230, INB261337233 & INF261337233, Research Entity SEBI Reg No: INH200000345, Investment Adviser SEBI Reg No: INA200002817, Portfolio
Manager:INP000003203, NSDL: IN-DP-NSDL-24-97, CDSL: IN-DP-CDSL-648-2012, ARN Regn.Nos:0098, IRDA Corporate Agent (Composite) No.: CA0226.
Research Entity SEBI Registration Number: INH200000345