2QFY2017 Result Update | Pharmaceutical
November 11, 2016
Cipla
REDUCE
CMP
`564
Performance Highlights
Target Price
`490
Y/E March (` cr)
2QFY2017 1QFY2017
% chg qoq 2QFY2016
% chg yoy
Investment Period
-
Net sales
3,672
3,500
4.9
3,379
8.7
Other income
106
119
(10.7)
107
(0.1)
Stock Info
Gross profit
2,342
2,129
10.0
2,171
7.9
Sector
Pharmaceutical
Operating profit
602
517
16.3bp
710
(15.3)bp
Market Cap (` cr)
45,378
Adj. Net profit
354
365
(3.0)
543
(34.7)
Net Debt (` cr)
563
Source: Company, Angel Research
Beta
0.6
52 Week High / Low
660/458
Cipla posted numbers lower than expected for 2QFY2017. The company posted
Avg. Daily Volume
169,642
sales of `3,672cr vs. `3,737cr expected, registering a yoy growth of 8.7%,
Face Value (`)
2
mainly aided by domestic formulations. Domestic formulation (`1,522cr) grew by
BSE Sensex
27,518
11.3% yoy, while exports (`2150cr) grew by 7.5% yoy. On the operating front,
Nifty
8,750
the EBITDA margin came in at 16.4% vs. 16.5% expected vs.
21.0% in
Reuters Code
CIPL.BO
2QFY2016, mainly on back of base effect. Consequently, the Adj. PAT came in
Bloomberg Code
[email protected]
at `354cr vs. `498cr expected vs. `543cr in 2QFY2016, a yoy de-growth of
34.7%. We maintain our Reduce rating on the stock.
Shareholding Pattern (%)
Results much lower than our expectations: Cipla posted numbers lower than
Promoters
36.7
expected during the quarter. The company posted sales of `3672cr vs. `3,737cr
MF / Banks / Indian Fls
20.3
expected, registering a yoy growth of
8.7%, mainly aided by domestic
FII / NRIs / OCBs
23.9
formulations. Domestic formulation (`1,522cr) grew by 11.3% yoy, while exports
Indian Public / Others
19.1
(`2150cr) grew by 7.5% yoy. On the operating front, the EBITDA margin came in
at 16.4% vs. 16.5% expected vs. 21.0% in 2QFY2016, mainly on back of base
Abs. (%)
3m 1yr
3yr
effect. Consequently, the Adj. PAT came in at `354cr vs. `498cr expected vs.
Sensex
(0.9)
6.9
33.2
`543cr in 2QFY2016, a yoy de-growth of 34.7%.
Cipla
7.8
(12.0)
(12.8)
Outlook and valuation: We expect the company to post a CAGR of 16.3% in
net sales to `18,089cr and EPS to record a CAGR of 20.4% to `27.2cr over
3-Year Daily Price Chart
FY2016-18E. We reiterate our Reduce stance on the stock.
800
Key financials (Consolidated)
700
600
Y/E March (` cr)
FY2015
FY2016
FY2017E
FY2018E
500
Net sales
11,681
13,372
15,378
18,089
400
% chg
19.8
14.5
15.0
17.6
300
200
Adj. Net profit
1,578
1,506
1,736
2,185
100
% chg
13.6
(4.5)
15.3
25.9
0
EPS (`)
19.6
18.8
21.6
27.2
EBITDA margin (%)
17.7
16.4
17.4
18.4
Source: Company, Angel Research
P/E (x)
23.8
24.9
21.6
17.2
RoE (%)
15.1
13.3
13.7
15.2
RoCE (%)
12.9
10.7
11.1
13.5
P/BV (x)
3.5
3.2
2.8
2.4
Sarabjit Kour Nangra
EV/Sales (x)
3.3
3.1
2.7
2.2
+91 22 3935 7600 Ext: 6806
EV/EBITDA (x)
18.6
18.8
15.3
12.0
[email protected]
Source: Company, Angel Research; Note: CMP as of November 10, 2016
Please refer to important disclosures at the end of this report
1
Cipla | 2QFY2017 Result Update
Exhibit 1: 2QFY2017 ( Consolidated) performance
Y/E March (` cr)
2QFY2017
1QFY2017
% chg QoQ
2QFY2016
% chg yoy 1HFY2017 1HFY2016
% chg yoy
Net sales
3,672
3,500
4.9
3,379
8.7
7,228
7,171
0.8
Other income
106.4
119.1
(10.7)
106.5
(0.1)
225.5
234.5
(3.8)
Total income
3,778
3,619
4.4
3,486
8.4
7,453
7,406
0.6
Gross profit
2342
2129
10.0
2171
7.9
4527
4719
(4.1)
Gross margin
63.8
60.8
64.2
62.6
65.8
Operating profit
602
517
16.3
710
(15.3)
1119
1687
(33.7)
OPM (%)
16.4
14.8
21.0
15.5
23.5
Interest
35.2
31.3
12.2
63.6
(44.8)
67
127
(47.7)
Depreciation
229
161
42.5
158
44.7
433
308
40.7
PBT
444
444
(0.1)
595
(25.4)
845
1487
(43.2)
Provision for taxation
72
71
1.5
40
79.5
127
282
(54.9)
PAT before extra-ordinary item
372
374
(0.5)
555
(33.0)
718
1205
(40.4)
Share of Profit /( loss ) of asso.
(17)
(8)
(3)
(24)
(12)
Extra-ordinary items/(income)
0
0
9
0
0
PAT after extra-ordinary item
354
365
(3.0)
543
(34.7)
693
1192
(41.8)
Adj. PAT
354
365
(3.0)
543
(34.7)
693
1192
(41.8)
EPS (`)
4.4
4.5
6.8
8.6
14.8
Source: Company, Angel Research
Exhibit 2: 2QFY2017 - Actual vs. Angel estimates
(` cr)
Actual
Estimates
Variance
Net sales
3,672
3,737
(1.7)
Other income
106
117
(8.8)
Operating profit
602
618
(2.6)
Tax
72
97
(25.7)
Net profit
354
498
(28.8)
Source: Company, Angel Research
Top-line growth lower than expectation
The company posted sales of `3672cr vs. `3,737cr expected, registering a yoy
growth of 8.7%, mainly aided by domestic formulations. Domestic formulation
(`1,522cr) grew by 11.3% yoy, while exports (`2150cr) grew by 7.5% yoy.
USA (US$98mn) posted a yoy de-growth of 25.8% excluding Nexium and Invagen
sales; the base business posted a yoy growth of 30%+. The company was the third
fastest-growing generics player in the US in 1QFY2017 and has 8 out of its 38
products ranked #1 in their respective segments. The company expects the US
portfolio to deliver robust growth on the back of its strong launch pipeline (~15
launches expected in the rest of FY2017) and enhanced focus on R&D.
South Africa (ZAR905mn) registered a growth of ~22% over the last year. The
company has a market share of ~5.3% in the private market and is the 3rd largest
generics player in South Africa with leadership in Respiratory, CNS, and Oncology
segments, where it commands a ~25-30% market share. Also, the company
posted a growth of 10% yoy in tender sales vs. last year.
November 11, 2016
2
Cipla | 2QFY2017 Result Update
Emerging market sales (US$113mn) posted an overall de-growth of ~11% yoy in
1QFY2017. Direct to market (DTM) sales declined by ~13% yoy owing to forex
volatility and complexity reduction initiatives, while there has been resurgence in
partnership-led markets (B2B) with 15% yoy growth.
Exhibit 3: Sales Trend
3,000
2,380
2,500
2,100
2,051
1,948
2,000
1,833
1,397
1,449
1,500
1,262
1,258
1,194
1,000
500
0
1QFY2016
2QFY2016
3QFY2016
4QFY2016
1QFY2017
Domestic
Export
Source: Company
Operating profit margin just in line with expectation
On the operating front, the EBITDA margin came in at 16.4% vs. 16.5% expected
vs. 21.0% in 2QFY2016, mainly on back of base effect. The employee expenses
during the quarter came in at `675.3cr, a yoy growth of 57.8%; while other
expenses during the quarter came in at `1065cr, a rise of 27.9% yoy.
Exhibit 4: OPM Trend
25.0
21.0
20.0
16.4
14.8
15.0
14.8
10.0
12.0
5.0
0.0
2QFY2016
3QFY2016
4QFY2016
1QFY2017
2QFY2017
Source: Company
Net profit lower than expectation
Consequently, the Adj. PAT came in at `354cr vs. `498cr expected vs. `543cr in
2QFY2016, a yoy de-growth of 34.7%.
November 11, 2016
3
Cipla | 2QFY2017 Result Update
Exhibit 5: Net Profit Trend
800
700
649
600
500
431
365
400
343
300
200
81
100
0
1QFY2016
2QFY2016
3QFY2016
4QFY2016
1QFY2017
Source: Company
Concall takeaways
R&D as % of sales for the quarter stood at 6.6%; it is expected to be at ~8% in
FY2017 as against ~6.5% in FY2016.
In USA, the company expects to file 15 ANDAs in FY2017.
DPCO and Fixed Dosage Combinations ban in domestic market expected to
impact by ~2-3% for FY2017.
Recommendation rationale
Export segment to be the growth driver: Cipla exports to more than 180 countries,
with growth coming through marketing alliances and distribution tie-ups in various
markets. Exports contributed 60% to the total turnover in FY2016, with Africa, US
and Latin America constituting more than ~60% of total exports. In the US, Cipla
has a strong product pipeline of 168 ANDAs, out of which, 90 are approved.
Another long term growth driver for the company is the launch of the CFC-free
inhalers in the regulated markets. CFC-free inhalers in Europe and US address a
potential market size of more than US$3bn.
During the quarter, the company strengthened its foothold in the US through the
acquisition of InvaGen Pharma and Exelan Pharma. The companies added a
pipeline of ~70 ANDAs of which 40 are approved (32 marketed) and 30 awaiting
approval. The company is likely to add over USD250mn in FY2017. The deal is
expected to conclude by December 2015. It will also provide manufacturing
capabilities in the US. Overall, we expect the company’s exports to grow at a
CAGR of 19.1% during FY2016-18E.
Increasing penetration in the domestic market: Cipla is one of the largest players
in the domestic formulation market with a market share of around 5.3%. Domestic
formulations contributed 40% to the company’s total turnover in FY2016. The
company is the market leader in key therapeutic areas such as respiratory care,
anti-viral and urological. Cipla’s distribution network in India consists of a field
force of around 7,000-8,000 employees. The company plans to increase its focus
on domestic markets with new therapies such as oncology and neuro-psychiatry in
the offing. The company plans to focus on growing its market share and sales by
November 11, 2016
4
Cipla | 2QFY2017 Result Update
increasing penetration in the Indian market, especially in rural areas, and plans to
expand its product portfolio by launching biosimilars, particularly relating to
the oncology, anti-asthmatic and anti-arthritis categories. Overall, we expect
the company’s domestic formulation business to post a CAGR of 14.0% over
FY2016-18E.
Valuation: We expect the company to post a CAGR of 16.3% in net sales to
`18,089cr and EPS to record a CAGR of 20.4% to `27.2 over FY2016-18E. The
growth in the top-line would be driven by domestic formulation sales and exports.
We maintain our Reduce stance on the stock.
Exhibit 6: Key assumptions
Key assumptions
FY2017E
FY2018E
Domestic growth (%)
13.0
15.0
Exports growth (%)
19.1
19.2
Growth in employee expenses (%)
15.0
15.0
Operating margins (excl tech. know-how fees) (%)
17.4
18.4
Source: Company, Angel Research
Exhibit 7: One-year forward PE band
800
700
600
500
400
300
200
100
-
Price
10x
15x
20x
25x
Source: Company, Angel Research
November 11, 2016
5
Cipla | 2QFY2017 Result Update
Exhibit 8: Recommendation Summary
Company
Reco
CMP Tgt. price Upside
FY2018E
FY16-18E
FY2018E
(`)
(`)
% PE (x) EV/Sales (x) EV/EBITDA (x) CAGR in EPS (%) RoCE (%) RoE (%)
Alembic Pharma
Neutral
655
-
-
21.6
2.9
13.5
(10.8)
27.5
25.3
Aurobindo Pharma Accumulate
790
877
10.9
16.7
2.7
11.6
18.1
22.5
26.1
Cadila Healthcare Neutral
401
-
-
20.9
3.2
14.7
13.4
22.7
25.7
Cipla
Neutral
564
-
-
20.7
2.6
14.3
20.4
13.5
15.2
Dr Reddy's
Neutral
3,274
-
-
22.9
2.9
13.2
1.7
16.2
15.9
Dishman Pharma Neutral
237
-
-
21.4
2.4
10.5
3.1
10.3
10.9
GSK Pharma*
Neutral
2,616
-
-
43.0
6.5
31.5
17.3
35.3
32.1
Indoco Remedies
Sell
295
240
(18.5)
18.4
2.2
11.8
33.2
19.1
20.1
Ipca labs
Neutral
593
-
-
30.1
2.1
13.6
36.5
8.8
9.4
Lupin
Buy
1,493
1,809
21.1
21.5
3.5
13.3
17.2
24.4
20.9
Sanofi India*
Neutral
4,265
-
-
24.8
2.7
17.8
22.2
24.9
28.8
Sun Pharma
Buy
667
944
41.5
20.3
4.0
12.9
22.0
33.1
18.9
Source: Company, Angel Research; Note: * December year ending
November 11, 2016
6
Cipla | 2QFY2017 Result Update
Company Background
Cipla is a leading pharmaceutical company in India with a strong presence in
both, export and domestic markets. On the exports front, where it follows the
partnership model, it has 5,700 product registrations in around 180 countries.
Cipla is a market leader in the domestic formulation market with ~5.3% market
share. The company is likely to continue on the growth trajectory owing to its entry
into the inhalers market in the EU and potential new long-term manufacturing
contracts with Global Innovators.
November 11, 2016
7
Cipla | 2QFY2017 Result Update
Profit & loss statement (Consolidated)
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016
FY2017E
FY2018E
Gross sales
8,196
9,902
11,861
13,587
15,615
18,368
Less: Excise duty
108.7
149.3
179.7
215.0
236.6
278.3
Net sales
8,087
9,753
11,681
13,372
15,378
18,089
Other operating income
193
348
348
306
306
306
Total operating income
8,279
10,100
12,029
13,678
15,684
18,395
% chg
17.9
22.0
19.1
13.7
14.7
17.3
Total expenditure
6,081
7,967
9,612
11,177
12,704
14,760
Net raw materials
2,953
3,875
4,556
5,118
5,736
6,747
Other mfg costs
641
827
993
1,142
1,313
1,510
Personnel
1,036
1,543
2,083
2,447
2,814
3,236
Other
1,451
1,722
1,981
2,470
2,841
3,267
EBITDA
2,005
1,786
2,069
2,195
2,675
3,329
% chg
35.0
(11.0)
15.9
6.1
21.8
24.5
(% of Net Sales)
24.8
18.3
17.7
16.4
17.4
18.4
Depreciation & amort.
330
373
457
542
676
732
EBIT
1,675
1,413
1,613
1,654
1,999
2,597
% chg
42.7
(15.6)
14.1
2.5
20.9
30.0
(% of Net Sales)
20.7
14.5
13.8
12.4
13.0
14.4
Interest & other charges
34
146
85
161
161
161
Other Income
235
266
266
209
209
209
(% of PBT)
11.4
14.1
12.4
10.4
8.9
7.1
Recurring PBT
2,069
1,881
2,141
2,007
2,352
2,951
% chg
39.3
(9.1)
13.8
(6.3)
17.2
25.5
Extraordinary exp./(Inc.)
(26.7)
-
-
-
-
-
PBT (reported)
2,095
1,881
2,141
2,007
2,352
2,951
Tax
544.3
463.4
535.3
439.6
588.0
737.7
(% of PBT)
26.0
24.6
25.0
21.9
25.0
25.0
PAT (reported)
1,551
1,417
1,606
1,567
1,764
2,213
Add: Share of earnings of asso.
(6)
(12)
(12)
(12)
(11)
(10)
Less: Minority interest (MI)
-
16
16
49
17
18
Prior period items
-
-
-
-
-
-
PAT after MI (reported)
1,545
1,388
1,578
1,506
1,736
2,185
ADJ. PAT
1,524
1,388
1,578
1,506
1,736
2,185
% chg
30.0
(8.9)
13.6
(4.5)
15.3
25.9
(% of Net Sales)
19.1
14.2
13.5
11.3
11.3
12.1
Basic EPS (`)
19.0
17.3
19.6
18.8
21.6
27.2
Fully Diluted EPS (`)
19.0
17.3
19.6
18.8
21.6
27.2
% chg
30.0
(8.9)
13.6
(4.5)
15.3
25.9
November 11, 2016
8
Cipla | 2QFY2017 Result Update
Balance sheet (Consolidated)
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016
FY2017E
FY2018E
SOURCES OF FUNDS
Equity share capital
161
161
161
161
161
161
Preference Capital
-
-
-
-
-
-
Reserves & surplus
8,858
9,890
10,629
11,697
13,245
15,241
Shareholders funds
9,019
10,050
10,801
11,857
13,405
15,402
Minority interest
-
50
180
270
270
270
Total loans
966.9
1,247.9
1,701.8
5,191.4
4,000.0
4,000.0
Other long term liabilities
30.0
32.6
32.6
32.6
32.6
32.6
Long Term Provisions
50.4
77.4
168.4
154.9
154.9
154.9
Deferred tax liability
280.5
309.0
284.6
366.4
366.4
366.4
Total liabilities
10,347
11,767
13,169
17,872
18,229
20,226
APPLICATION OF FUNDS
Gross block
5,318
6,183
6,868
8,100
8,800
9,500
Less: acc. depreciation
1,708
2,180
2,634
3,176
3,852
4,584
Net block
3,610
4,003
4,234
4,924
4,948
4,916
Capital work-in-progress
378
442
442
442
442
442
Goodwill
-
2,493
2,735
5,713
5,713
5,713
Investments
2,532
709
640
757
757
757
Long Term Loans and Adv.
363
301
419
715
475
559
Current assets
4,775
5,340
7,201
8,262
8,508
10,914
Cash
143
175
564
871
358
1,327
Loans & advances
573
596
701
958
923
1,085
Others
4,058
4,569
5,936
6,432
7,228
8,502
Current liabilities
1,311
1,634
2,501
2,939
2,614
3,075
Net current assets
3,464
3,706
4,700
5,322
5,894
7,839
Mis. Exp. not written off
-
112
-
-
-
-
Total assets
10,347
11,767
13,169
17,872
18,229
20,226
November 11, 2016
9
Cipla | 2QFY2017 Result Update
Cash flow statement (Consolidated)
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016
FY2017E FY2018E
Profit before tax
2,095
1,881
2,141
2,007
2,352
2,951
Depreciation
330
373
457
542
676
732
(Inc)/Dec in Working Capital
(667)
(149)
(722)
(611)
(846)
(1,060)
Direct taxes paid
518
431
537
632
-
-
Cash Flow from Operations
1,241
1,673
1,339
1,306
2,182
2,623
(Inc.)/Dec.in Fixed Assets
(698)
(930)
(684)
(1,232)
(700)
(700)
(Inc.)/Dec. in Investments
(1,263)
1,824
69
(117)
-
-
Other income
-
-
-
-
-
-
Cash Flow from Investing
(1,961)
894
(616)
(1,349)
(700)
(700)
Issue of Equity
-
-
-
-
-
-
Inc./(Dec.) in loans
957
311
545
3,476
(1,191)
-
Dividend Paid (Incl. Tax)
(188)
(188)
(188)
(188)
(188)
(188)
Others
4
(2,658)
(692)
(2,938)
410
(766)
Cash Flow from Financing
773
(2,535)
(335)
350
(969)
(954)
Inc./(Dec.) in Cash
53
32
389
307
513
969
Opening Cash balances
90
143
175
564
871
358
Closing Cash balances
143
175
564
871
358
1,327
November 11, 2016
10
Cipla | 2QFY2017 Result Update
Key Ratio
Y/E March
FY2013
FY2014
FY2015
FY2016
FY2017E
FY2018E
Valuation Ratio (x)
P/E (on FDEPS)
29.7
32.6
28.7
30.1
26.1
20.7
P/CEPS
24.1
25.7
22.3
22.1
18.8
15.5
P/BV
5.0
4.5
4.2
3.8
3.4
2.9
Dividend yield (%)
0.4
0.4
0.4
0.4
0.4
0.4
EV/Sales
5.7
4.7
4.0
3.7
3.2
2.6
EV/EBITDA
22.8
25.8
22.3
22.3
18.2
14.3
EV / Total Assets
4.4
3.9
3.5
2.7
2.7
2.4
Per Share Data (`)
EPS (Basic)
19.0
17.3
19.6
18.8
21.6
27.2
EPS (fully diluted)
19.0
17.3
19.6
18.8
21.6
27.2
Cash EPS
23.4
21.9
25.3
25.5
30.0
36.3
DPS
2.0
2.0
2.0
2.0
2.0
2.0
Book Value
112.3
125.2
134.5
147.7
166.9
191.8
Dupont Analysis
EBIT margin
20.7
14.5
13.8
12.4
13.0
14.4
Tax retention ratio
74.0
75.4
75.0
78.1
75.0
75.0
Asset turnover (x)
0.9
0.9
1.0
0.9
0.9
1.0
ROIC (Post-tax)
14.0
10.1
10.3
8.9
8.8
10.8
Cost of Debt (Post Tax)
5.0
9.9
4.3
3.7
2.6
3.0
Leverage (x)
0.0
0.1
0.0
0.0
1.0
2.0
Operating ROE
14.4
10.1
10.3
8.9
14.9
26.3
Returns (%)
ROCE (Pre-tax)
18.3
12.8
12.9
10.7
11.1
13.5
Angel ROIC (Pre-tax)
19.3
15.3
17.8
16.3
17.7
21.2
ROE
18.3
14.6
15.1
13.3
13.7
15.2
Turnover ratios (x)
Asset Turnover (Gross Block)
1.7
1.8
1.8
1.8
1.9
2.0
Inventory / Sales (days)
93
95
96
101
87
95
Receivables (days)
71
60
74
58
67
73
Payables (days)
46
41
55
74
43
44
WC cycle (ex-cash) (days)
131
124
116
115
116
120
Solvency ratios (x)
Net debt to equity
0.1
0.1
0.1
0.4
0.3
0.2
Net debt to EBITDA
0.4
0.6
0.5
2.0
1.4
0.8
Interest Coverage (EBIT/Int.)
-
-
-
-
-
-
November 11, 2016
11
Cipla | 2QFY2017 Result Update
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
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While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
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Disclosure of Interest Statement
Cipla
1. Financial interest of research analyst or Angel or his Associate or his relative
No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives
No
3. Served as an officer, director or employee of the company covered under Research
Yes
4. Broking relationship with company covered under Research
No
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15)
November 11, 2016
12