Retail

India I Equities Company Update

Change in Estimates  Target  Reco 

16 November 2024

Senco Gold (India)

Rating: Buy
One-time hit due to customs duty cut; maintaining a Buy Target Price (12-mth): Rs.1,401
Share Price: Rs.1,075
Though inventory loss kept PAT lower, Senco’s Q2 revenue was in line
with estimates. H1 revenue grew 18.5% y/y on 12% SSSG, strong festival
Key data SENCO IN
demand and more footfalls post-customs duty cut. Despite a Rs298m loss 52-week high / low Rs.1,544 / 668
on inventory valuation, EBITDA margin/PAT rose 118bps/60% y/y in H1. Sensex / Nifty 77,580 / 23,533
Gold jewellery grew 22% in value (higher gold prices) while diamond sales 3-m average volume $8.6m
were dull. Eight stores were added in H1 and 18-20 more are planned for Market cap Rs.84bn / $992.9m
FY25. Net debt rose to ~Rs11bn (from Rs9.5bn at end-FY24) because of Shares outstanding 78m
higher WC. With the good festival season, Oct saw record sales (Rs10bn+)
driven by 24-25% value growth and 12-15% SSSG, resulting in 15-18% ytd Shareholding pattern (%) Sept'24 Jun'24 Mar'24
growth. The company guided to 18-20% revenue growth in FY25 and 15- Promoters 67.5 68.5 68.5
18% PAT growth despite a Rs500m-600m one-time inventory impact. We .- of which, Pledged - - -
lower our FY25e/26e revenue 4.2% on average and PAT ~7% on average Free float 32.5 31.6 31.6
due to the customs duty impact. We introduce FY27e and retain our Buy - Foreign institutions 8.6 7.7 14.0
rating with a higher TP of Rs1,401, 32x FY27e P/E (earlier Rs1,277, 28x - Domestic institutions 9.6 10.5 7.5
- Public 14.4 13.4 10.0
FY26e P/E).

EBITDA/PAT hurt by customs duty loss. Q2 consol. revenue grew ~31% Estimates revision (%) FY25e FY26e
y/y to Rs15bn on 27% retail sales growth and 20% SSSG. Gold grew 30%/7% Sales (3.3) (5.1)
y/y by value/volume; diamonds 9% y/y by value, but volumes slipped 3% y/y. EBITDA (4.1) (4.3)
ATV grew 12% y/y on preference for higher-priced products, but ahead will be EPS (10.3) (4.0)
driven by daily wear. The gross margin rose 44bps y/y to 12.3%. The studded mix
was ~11% in Q2. EBITDA grew 31.5% y/y to Rs519m while the margin was flat Relative price performance
y/y at 3.5%, hit by customs duty-related losses. PAT grew 1.5% y/y to Rs121m. 1,600
1,400
More WC required. Inventory rose Rs4.4bn (vs end-FY24) on the rise in gold 1,200
prices, resulting in a Rs1.2bn rise in debt. Inventory hedging was 85% in Q2. The 1,000
company plans to raise Rs5bn through a QIP for WC required and stores added. 800
Old gold exchange contributed 34% y/y, 62% of which came from non-Senco 600

customers, indicating a shift from the unorganized to the organized segment. 400
Feb-24

Jul-24
Nov-23
Dec-23
Jan-24

Jun-24

Aug-24
Sep-24

Nov-24
Mar-24

May-24

Oct-24
Apr-24

Valuation. We retain our Buy at a TP of Rs1,401, 32x FY27e P/E. At the SENCO Sensex
CMP, the stock is valued at 35.4x/24.6x/18.7x FY25e/26e/27e P/E. Risks:
Source: Bloomberg
More working capital, higher regulatory requirements, keener competition.
Key financials (YE Mar) FY23 FY24 FY25e FY26e FY27e
Sales (Rs m) 40,774 52,414 62,340 74,598 89,917
Net profit (Rs m) 1,585 1,810 2,107 3,035 3,993
EPS (Rs) 22.9 26.1 30.4 43.8 57.6
P/E (x) - 29.5 35.4 24.6 18.7
EV / EBITDA (x) - 17.5 19.5 15.2 12.7 Vaishnavi Mandhaniya
P/BV (x) - 3.9 4.8 4.0 3.3 Research Analyst
RoE (%) 19.0 15.7 14.4 17.8 19.5 +9122 66266760
vaishnavimandhaniya@[Link]
RoCE (%) 10.7 9.2 9.2 11.1 12.5
Dividend yield (%) - 0.2 0.2 0.2 0.2 Shreya Baheti
Net debt / equity (x) 0.8 0.7 0.6 0.4 0.4 Research Associate
shreyabaheti@[Link]
Source: Company, Anand Rathi Research

Anand Rathi Share and Stock Brokers Limited (hereinafter “ARSSBL”) is a full-service brokerage and equities-research firm and the views expressed therein are solely of
ARSSBL and not of the companies which have been covered in the Research Report. This report is intended for the sole use of the Recipient. Disclosures and analyst
certifications are present in the Appendix.

Anand Rathi Research India Equities

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 16 November 2024 Senco Gold (India) - One-time hit due to customs duty cut; maintaining a Buy

Quick Glance – Financials and Valuations

Fig 1 – Income statement (Rs m) Fig 2 – Balance sheet (Rs m)
Year-end: Mar FY23 FY24 FY25e FY26e FY27e Year-end: Mar FY23 FY24 FY25e FY26e FY27e
Net revenues 40,774 52,414 62,340 74,598 89,917 Share capital 559 777 777 777 777
Growth (%) 15.4 28.5 18.9 19.7 20.5 Net worth 9,455 13,655 15,624 18,521 22,375
Direct costs 34,219 44,401 52,989 63,036 75,800 Debt (incl. Pref.) 11,793 14,983 14,983 14,983 14,983
SG&A 3,388 4,259 4,952 5,984 7,316 Minority interest
EBITDA 3,166 3,755 4,399 5,578 6,801 DTL / (Assets)* 1,918 2,400 2,400 2,400 2,400
EBITDA margins (%) 7.8 7.2 7.1 7.5 7.6 Capital employed 23,166 31,038 33,007 35,904 39,758
- Depreciation 456 601 699 753 804 Net tangible assets** 2,774 3,592 3,869 4,015 4,109
Other income 311 422 499 597 719 Net intangible assets 23 28 - - -
Interest expenses 861 1,081 1,336 1,321 1,321 Goodwill
PBT 2,162 2,495 2,863 4,101 5,396 CWIP (tang. & intang.) 131 15 15 15 15
Effective tax rate (%) 26.7 27.5 26.4 26.0 26.0 Investments (strategic) - - - - -
+ Associates / (Minorities) - - - - - Investments (financial) 1 1 1 1 1
Net income 1,585 1,810 2,107 3,035 3,993 Current assets (excl. cash) 21,569 27,848 29,828 34,230 41,225
Adjusted income 1,585 1,810 2,107 3,035 3,993 Cash 4,376 5,514 6,270 7,105 5,767
WANS 69.3 69.3 69.3 69.3 69.3 Current liabilities 5,708 5,960 6,977 9,463 11,360
FDEPS (Rs) 22.9 26.1 30.4 43.8 57.6 Working capital 15,862 21,889 22,851 24,768 29,865
FDEPS growth (%) 18.1 14.2 16.4 44.0 31.6 Capital deployed 23,166 31,038 33,007 35,904 39,758
Gross margins (%) 16.1 15.3 15.0 15.5 15.7 Contingent liabilities - - - - -
* including lease liabilities ** including right-to-use assets

Fig 3 – Cash-flow statement (Rs m) Fig 4 – Ratio analysis

Year-end: Mar FY23 FY24 FY25e FY26e FY27e Year-end: Mar FY23 FY24 FY25e FY26e FY27e
PBT 2,162 2,495 2,863 4,101 5,396 P/E (x) - 29.5 35.4 24.6 18.7
+ Non-cash items 1,140 1,355 2,035 2,074 2,125 EV / EBITDA (x) - 17.5 19.5 15.2 12.7
Oper. prof. before WC 3,302 3,850 4,898 6,175 7,521 EV / Sales (x) - 1.3 1.4 1.1 1.0
- Incr. / (decr.) in WC 3,492 6,081 963 1,916 5,097 P/B (x) - 3.9 4.8 4.0 3.3
Others incl. taxes 592 708 755 1,066 1,403 RoE (%) 19.0 15.7 14.4 17.8 19.5
Operating cash-flow (782) (2,938) 3,179 3,192 1,021 RoCE (%) - after tax 10.7 9.2 9.2 11.1 12.5
- Capex (tang. + intang.) 311 382 550 500 500 RoIC 13.3 11.4 11.5 14.1 15.3
Free cash-flow (1,093) (3,321) 2,629 2,692 521 DPS (Rs) 1.5 2.0 2.0 2.0 2.0
Acquisitions Dividend yield (%) - 0.2 0.2 0.2 0.2
- Div. (incl. buyback & taxes) 114 93 139 139 139 Div. payout (%) - incl. DDT 6.6 7.7 6.6 4.6 3.5
+ Equity raised 750 2,482 - - - Net debt / Equity (x) 0.8 0.7 0.6 0.4 0.4
+ Debt raised 3,142 3,212 - - - Receivables (days) 4 4 4 4 4
- Fin investments 1,906 731 - - - Inventory (days) 169 171 152 145 145
- Misc. (CFI + CFF) 780 1,460 1,734 1,719 1,719 Payables (days) 14 14 14 14 14
Net cash-flow (1) 90 757 834 (1,337) CFO: PAT (%) (49.3) (162.3) 150.9 105.2 25.6
Source: Company, Anand Rathi Research Source: Company, Anand Rathi Research

Fig 5 – Price movement Fig 6 – Q2 revenue grew ~31% y/y to Rs15bn

(Rs m)
(Rs) 18,000
1,600 16,522
16,000 15,005
1,400 14,039
14,000 13,396 13,054
1,200
12,000 11,466 11,373
1,000 10,072
10,000 9,111
800 8,139
8,000
600 6,000
400 4,000

200 2,000

0 -
Q1FY23

Q2FY23

Q3FY23

Q4FY23

Q1FY24

Q2FY24

Q3FY24

Q4FY24

Q1FY25

Q2FY25
Feb-24
Jul-23
Aug-23
Sep-23

Nov-23
Dec-23
Jan-24

Jun-24
Jul-24
Aug-24
Sep-24

Nov-24
Mar-24

May-24
Oct-23

Apr-24

Oct-24

Source: Bloomberg Source: Company

Anand Rathi Research 2

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 16 November 2024 Senco Gold (India) - One-time hit due to customs duty cut; maintaining a Buy

Financial highlights
Q2 consolidated revenue grew 30.9% y/y, 6.9% q/q, to Rs15bn. The gross
margin expanded 44bps y/y to 12.3% (but q/q was down 504bps).
Employee/other expenses grew 31.7%/39.6% y/y. EBITDA grew 31.5%
y/y to Rs519m (but q/q fell 52.2%), the margin coming flat y/y at 3.5% (but
q/q down 429bps). Depreciation/interest expense/other income were up
~35%/40%/35% y/y. PBT grew 17.7% y/y to Rs164m. The tax rate rose
to 25.9% (from 14.1% a year ago). PAT grew 1.5% y/y to Rs121m (but q/q
plunged 76.4%).

H1 FY25 revenue grew 18.5% y/y to Rs29bn. The gross margin expanded
251bps y/y to 14.7%. EBITDA grew 50.6% y/y to Rs1.6bn and the margin
expanded 118bps y/y to 5.5%. PAT grew 60% y/y to Rs634m. Net debt
was ~Rs11bn (vs. Rs9.5bn at end-FY24). Net working capital days were 161
(vs 141 a year back) on the back of 28-day y/y rise in inventory days to 182.
Receivables days were six (vs five a year ago) while payables days rose by
nine y/y to 27. H1 FY25 OCF/FCF were negative Rs826m/1bn (vs.
negative Rs1.4bn/1.6bn last year).

Fig 7 – Quarterly and half-yearly results

(Rs m) Q2 FY25 Q2 FY24 Y/Y (%) Q1 FY25 Q/Q (%) H1 FY25 H1 FY24 Y/Y (%)
Revenue 15,005 11,466 30.9 14,039 6.9 29,044 24,520 18.5
Gross margin (%) 12.3 11.8 44bps 17.3 -504 bps 14.7 12.2 251 bps
Employee expenses 333 253 31.7 340 -1.8 673 507 32.7
Other expenses 986 706 39.6 1,001 -1.5 1,987 1,413 40.6
EBITDA 519 395 31.5 1,087 -52.2 1,607 1,067 50.6
EBITDA margin, % 3.5 3.4 2bps 7.7 -429 bps 5.5 4.4 118 bps
Depreciation 178 133 34.6 181 -1.3 359 258 39.2
Interest expense 326 234 39.7 322 1.5 648 500 29.6
Other income 149 110 35.2 123 21.4 272 205 32.8
PBT 164 139 17.7 708 -76.9 872 514 69.7
Tax 42 20 116.8 195 -78.2 238 117 102.4
Tax rate (%) 25.9 14.1 1186 bps 27.6 -163bps 27.3 22.9 440 bps
PAT 121 119 1.5 513 -76.4 634 396 60.0
Source: Company

Anand Rathi Research 3

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 16 November 2024 Senco Gold (India) - One-time hit due to customs duty cut; maintaining a Buy

Other Highlights
◼ Demand. Q2 sales grew ~31% y/y, driven by 20% SSSG, despite the
seasonally weak quarter. The customs duty cut (at end-July) reduced gold
prices, prompting customers to advance purchases, boosting Q2
revenue growth. Growth was led by tier-2, -3, and -4 cities and towns,
along with semi-urban areas.
◼ Festival sales. October sales hit a record high, surpassing Rs10bn, with
3-4% volume growth, 24-25% y/y value growth and 12-15% SSSG.
YTD growth was 15-18%.
◼ Customs duty reduction curtailed Q2 profitability by ~Rs298m. The
total impact for FY25 is estimated at Rs500m-600m, of which the
balance ~Rs300m is expected to carry over to Q3.
◼ Average ticket sizes rose 12% y/y, because of demand for higher-
priced items, primarily wedding-related purchases in H1. In smaller
cities, ticket sizes averaged ~Rs70,000-100,000, while in metropolises
demand was either for daily-wear products ranging from Rs30,000 to
Rs50,000 or for high value jewellery of >Rs200,000.
◼ Store network. The company added three showrooms in Q2 (eight in
H1), incl. 1 COCO and two franchisees. Although fewer franchisees
were added in Q2, growth was driven by primary sales to franchisees and
their secondary sales. The company retains its FY25 expansion target of
18-20 stores, with 4-5 franchisees in the pipeline. 68-70% of these store
additions will be in the East, levering its strong market presence, 15-20%
in the North, and the rest in the South and West.
◼ Sennes aims to position itself as an aspirational yet affordable brand for
the upper middle class. Its stores feature lab-grown diamonds (LGDs)
and leather goods, with perfumes set to be launched in Q3 to enhance
the lifestyle appeal. The focus is on 30-50 cent LGD, as smaller sizes
(under 7-8 cents) offer limited economic benefits due to minimal price
differences with natural diamonds. LGDs also provide slightly higher
margins than natural diamonds. Currently operating six stores, Senco
plans to expand the network to 8-10 by FY25, progressing gradually as
Sennes is still in the investment phase.
◼ Balance sheet. Borrowings rose ~Rs2.4bn q/q, driven by a 4-5% gold
price increase and the inventory build-up for festival season. In Q2
FY25, inventory rose q/q to ~Rs29bn (from ~Rs25.9bn in Q1). Besides,
the company hedged 85% of its inventory in Q2, down from 95% in Q1.
◼ Outlook. Senco expects 18-20% y/y revenue growth in FY25, driven
by 10-12% SSSG and 6-7% store expansion. Gross margins are
projected at 15-16%, with plans to raise the studded mix from current
10-11% to 15% in the near term. Bottom-line growth is estimated at 15-
18% despite a one-time inventory valuation impact.

Anand Rathi Research 4

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 16 November 2024 Senco Gold (India) - One-time hit due to customs duty cut; maintaining a Buy

Fig 8 – 12.3% gross margin, Q2 Fig 9 – 3.5% EBITDA margin, Q2

(%) (Rsm) (%)
25.6 2,000 14.0
1,800 12.1
11.0 12.0
20.6 19.3 18.9 18.7 1,600
17.1 17.3 1,400 10.0
8.2
15.6 1,200 7.7 7.7
13.5 8.0
11.9 12.5 11.8 12.3 1,000
5.5 5.1 6.0
800
10.6
600 3.6 3.4 3.5 4.0
400
5.6 2.0
200
551 326 1,627 667 672 395 1,811 877 1,087 519
0 0.0
0.6

Q1FY23

Q2FY23

Q3FY23

Q4FY23

Q1FY24

Q2FY24

Q3FY24

Q4FY24

Q1FY25

Q2FY25
Q1FY23

Q2FY23

Q3FY23

Q4FY23

Q1FY24

Q2FY24

Q3FY24

Q4FY24

Q1FY25

Q2FY25
Gross margin (%) EBITDA EBITDA margin (RHS)

Source: Company Source: Company

Fig 10 – 0.8% PAT margin, Q2 Fig 11 – SSSG at 12%, H1 FY25

(Rsm) (%) (%)
1,200 9.0 30 27.0
7.7 8.0
1,000 25
6.6 7.0
19.0
800 6.0 20
5.0
600 15
3.7 4.0
3.2 12.0
2.8 10.0
400 2.2 3.0
2.1 10
2.0 7.0
200 1.0 1.0 0.8
1.0 5
226 88 1,034 260 277 119 1,093 322 513 121
0 0.0
0
Q1FY23

Q2FY23

Q3FY23

Q4FY23

Q1FY24

Q2FY24

Q3FY24

Q4FY24

Q1FY25

Q2FY25

H1 FY25
FY21

FY22

FY23

FY24

PAT PAT margin (RHS) SSSG (%)

Source: Company Note: Q1, Q2 and Q3 FY23 are vs. pre-Covid Source: Company

Fig 12 – 10.5% studded mix, H1 FY25 Fig 13 – Ended H1 with 167 stores
(%) (Nos)
12 11.4 180
167
160 159
11 136
10.5 140
10.0 127 70
66
10 120 112
100 61
9.0 57
9 52
8.0 80

8 60
93 97
40 75
60 70
7
20

6 0
FY23

FY24
FY21

FY22

H1 FY25
H1 FY25
FY21

FY22

FY23

FY24

Stud Ratio (%) COCO Franchisee

Source: Company Source: Company

Anand Rathi Research 5

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 16 November 2024 Senco Gold (India) - One-time hit due to customs duty cut; maintaining a Buy

Change in estimates
We lower our FY25e/26e revenue 4.2% on average.
Our FY25e/26e PAT is ~7% lower on average due to the customs duty impact.

Fig 16 – Estimate revisions

Old New Change (%)

FY25e FY26e FY25e FY26e FY25 FY26

Revenue 64,461 78,577 62,340 74,598 (3.3) (5.1)

EBITDA 4,588 5,828 4,399 5,578 (4.1) (4.3)
PAT 2,349 3,159 2,107 3,035 (10.3) (3.9)
EPS (Rs) 33.9 45.6 30.4 43.8 (10.3) (4.0)
Source: Anand Rathi Research

Anand Rathi Research 6

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 16 November 2024 Senco Gold (India) - One-time hit due to customs duty cut; maintaining a Buy

Valuation
We introduce FY27e and maintain our Buy recommendation at a higher 12-
mth TP of Rs1,401 based on 32x FY27e P/E (earlier Rs1,277, 28x FY26e
P/E). At the CMP, the stock trades at 35.4x/24.6x/18.7x FY25e/FY26e/
FY27e P/E and 19.5x/15.2x/12.7x EV/EBITDA.
Senco’s own stores and franchisees, location advantage in the east, focus on
light-weight jewellery, ability to meet shifts in consumer preferences, just-in-
time inventory, efficient operating model and an eight-decade legacy afford
it the keen edge over competitors.

Fig 17 – Valuation parameters

FY23 FY24 FY25e FY26e FY27e
P/E (x) - 29.5 35.4 24.6 18.7
EV / EBITDA (x) - 17.5 19.5 15.2 12.7
EV / Sales (x) - 1.3 1.4 1.1 1.0
RoE (%) 19.0 15.7 14.4 17.8 19.5
RoCE (%) 10.7 9.2 9.2 11.1 12.5
Source: Company, Anand Rathi Research

Risks
◼ More working capital required. Jewellery retailing requires more
working capital. The company’s inability to meet such requirements on
commercially-acceptable terms may curtail its business.
◼ Stricter regulated environment. The jewellery segment is subject to
certain approvals, permits and licenses in the ordinary course of
business. Failure to obtain, renew or comply with such requirements
may curb operations.
◼ Stiff competition. The company operates in highly competitive and
fragmented regions, where competition is based on market trends,
pricing and customer preferences.

Anand Rathi Research 7

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 Appendix
Analyst Certification
The views expressed in this Research Report accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the
compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s)
in this report. The research analysts are bound by stringent internal regulations and also legal and statutory requirements of the Securities and Exchange Board of
India (hereinafter “SEBI”) and the analysts’ compensation are completely delinked from all the other companies and/or entities of Anand Rathi, and have no bearing
whatsoever on any recommendation that they have given in the Research Report.

Important Disclosures on subject companies

Rating and Target Price History (as of 15 November 2024)
TP Share
1700
Senco Gold Date Rating (Rs) Price (Rs)
1500 1 18-Apr-24 Buy 1,277 968
1300
1100 1
900
700
500
300
100

Nov-24
Jul-24

Jul-24
Apr-24

Jun-24

Jun-24

Oct-24

Oct-24

Oct-24
May-24

May-24

May-24

Aug-24

Aug-24

Sep-24

Sep-24

Anand Rathi Ratings Definitions

Analysts’ ratings and the corresponding expected returns take into account our definitions of Large Caps, Mid Caps & Small Caps as described in the Ratings
Table below:
Ratings Guide (12 months)
Buy Hold Sell
Large Caps (Top 100 companies) >15% 0-15% <0%
Mid Caps (101st-250th company) >20% 0-20% <0%
Small Caps (251st company onwards) >25% 0-25% <0%

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 ARSSBL and its associates or employees may; (a) from time to time, have long or short positions in, and buy or sell the investments in/ security of company (ies) mentioned
herein or (b) be engaged in any other transaction involving such investments/ securities of company (ies) discussed herein or act as advisor or lender / borrower to such company
(ies) these and other activities of ARSSBL and its associates or employees may not be construed as potential conflict of interest with respect to any recommendation and related
information and opinions. Without limiting any of the foregoing, in no event shall ARSSBL and its associates or employees or any third party involved in, or related to computing
or compiling the information have any liability for any damages of any kind.
Details of Associates of ARSSBL and Brief History of Disciplinary action by regulatory authorities & its associates are available on our website i.e. [Link]
Disclaimers in respect of jurisdiction: This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any
locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject ARSSBL to any
registration or licensing requirement within such jurisdiction(s). No action has been or will be taken by ARSSBL in any jurisdiction (other than India), where any action for such
purpose(s) is required. Accordingly, this Report shall not be possessed, circulated and/or distributed in any such country or jurisdiction unless such action is in compliance with
all applicable laws and regulations of such country or jurisdiction. ARSSBL requires such recipient to inform himself about and to observe any restrictions at his own expense,
without any liability to ARSSBL. Any dispute arising out of this Report shall be subject to the exclusive jurisdiction of the Courts in India.
Statements on ownership and material conflicts of interest, compensation - ARSSBL and Associates
Answers to the Best of the knowledge and belief of ARSSBL/ its Associates/ Research Analyst who is preparing this report
Research analyst or research entity or his associate or his relative has any financial interest in the subject company and the nature of such financial interest. No
ARSSBL/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject company, at the end of No
the month immediately preceding the date of publication of the research report?
ARSSBL/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject company No
ARSSBL/its Associates/ Research Analyst/ his Relative have any other material conflict of interest at the time of publication of the research report? No
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation from the subject company in the past twelve months No
ARSSBL/its Associates/ Research Analyst/ his Relative have managed or co-managed public offering of securities for the subject company in the past twelve No
months
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation for investment banking or merchant banking or brokerage services from No
the subject company in the past twelve months
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation for products or services other than investment banking or merchant No
banking or brokerage services from the subject company in the past twelve months
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation or other benefits from the subject company or third party in connection No
with the research report
ARSSBL/its Associates/ Research Analyst/ his Relative have served as an officer, director or employee of the subject company. No
ARSSBL/its Associates/ Research Analyst/ his Relative has been engaged in market making activity for the subject company. No

Other Disclosures pertaining to distribution of research in the United States of America

Research report is a product of Anand Rathi Share and Stock Brokers Ltd. (hereinafter refer as ARSSBL) under Marco Polo Securities 15a6 chaperone service which is the
employer of the research analyst(s) who has prepared the research report. The research analyst(s) preparing the research report is/are resident outside the United States (U.S.)
and are not associated persons of any U.S. regulated broker-dealer and therefore the analyst(s) is/are not subject to supervision by a U.S. broker-dealer, and is/are not required
to satisfy the regulatory licensing requirements of FINRA or required to otherwise comply with U.S. rules or regulations regarding, among other things, communications with a
subject company, public appearances and trading securities held by a research analyst account.
Research reports are intended for distribution by only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the U.S. Securities and Exchange Act, 1934 (the Exchange
Act) and interpretations thereof by U.S. Securities and Exchange Commission (SEC) in reliance on Rule 15a 6(a)(2). If the recipient of this report is not a Major Institutional
Investor as specified above, then it should not act upon this report and return the same to the sender. Further, this report may not be copied, duplicated and/or transmitted onward
to any U.S. person, which is not the Major Institutional Investor. In reliance on the exemption from registration provided by Rule 15a-6 of the Exchange Act and interpretations
thereof by the SEC in order to conduct certain business with Major Institutional Investors, ARSSBL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Marco Polo Securities Inc. ("Marco Polo").
1. ARSSBL or its Affiliates may or may not have been beneficial owners of the securities mentioned in this report.
2. ARSSBL or its affiliates may have or not managed or co-managed a public offering of the securities mentioned in the report in the past 12 months.
3. ARSSBL or its affiliates may have or not received compensation for investment banking services from the issuer of these securities in the past 12 months and do not expect
to receive compensation for investment banking services from the issuer of these securities within the next three months.
4. However, one or more of ARSSBL or its Affiliates may, from time to time, have a long or short position in any of the securities mentioned herein and may buy or sell those
securities or options thereon, either on their own account or on behalf of their clients.
5. ARSSBL or its Affiliates may or may not, to the extent permitted by law, act upon or use the above material or the conclusions stated above, or the research or analysis on
which they are based before the material is published to recipients and from time to time, provide investment banking, investment management or other services for or solicit to
seek to obtain investment banking, or other securities business from, any entity referred to in this report.
© 2024. This report is strictly confidential and is being furnished to you solely for your information. All material presented in this report, unless specifically indicated otherwise, is
under copyright to ARSSBL. None of the material, its content, or any copy of such material or content, may be altered in any way, transmitted, copied or reproduced (in whole or
in part) or redistributed in any form to any other party, without the prior express written permission of ARSSBL. All trademarks, service marks and logos used in this report are
trademarks or service marks or registered trademarks or service marks of ARSSBL or its affiliates, unless specifically mentioned otherwise.
As of the publication of this report, ARSSBL does not make a market in the subject securities.
Additional information on recommended securities/instruments is available on request.
Compliance officer-Deepak Kedia, email id - deepakkedia@[Link], Contact no. +91 22 6281 7000
Grievance officer-Madhu Jain-email id- grievance@[Link], Contact no. +91 22 6281 7191
ARSSBL registered address: Express Zone, A Wing, 9th Floor, Western Express Highway, Diagonally Opposite Oberoi Mall, Malad (E), Mumbai – 400097.
Tel No: +91 22 6281 7000 | Fax No: +91 22 4001 3770 | CIN: U67120MH1991PLC064106.

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