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India I Equities Company Update

Change in Estimates  Target  Reco 

25 October 2024

Craftsman Automation
Rating: Hold
Acquisition, new segment opportunities to drive value; retaining a Hold Target Price: Rs.6,500
Share Price: Rs.5,395
On less than-expected powertrain & industrial product margins,
Craftsman’s Q2 FY25 EBITDA fell 19% y/y to Rs1.92bn, missing our Key data CRAFTSMA IN
Rs2.18bn expectation. We are positive about the medium to long term due 52-week high / low Rs7121 / 3782
Sensex / Nifty 80085 / 24407
to fresh opportunities in import substitution, lightweighting and industrials
3-m average volume $5.7m
(heavy engines, off-highway, wind, capital goods; annual potential of over
Market cap Rs127bn / $1505.2m
$100m in the next 4-5 years), reasonably priced acquisitions (Sunbeam, Shares outstanding 24m
Frongberg) and capacity expansion (a 25% increase), which would drive
robust growth in powertrain/aluminium products. We introduce our FY27e,
Shareholding pattern (%) Sep'24 Jun'24 Mar'24
with 11%/22%/38% revenue/EBITDA/PAT growth. We retain our Hold at 48.7 48.7 55.0
Promoters
a higher Rs6,500 TP, 25x FY27e P/E (earlier Rs6,000, 30x FY26e). - of which, Pledged - - -
Free float 51.3 51.3 45.0
EBITDA below estimates. Q2 FY25 consolidated revenue grew 3% y/y to - Foreign institutions 16.6 15.8 12.6
Rs12.1bn, broadly in line with our Rs12.5bn estimate. EBITDA fell 19% to - Domestic institutions 21.5 21.5 16.0
Rs1.92bn, below our Rs2.18bn estimate due to lower-than-expected powertrain - Public 13.2 14.1 16.5
& industrial product margins. Powertrain sales grew 9% to Rs4.3bn. The EBIT
margin fell 490bps y/y, 230bps q/q, to 14.7%. Aluminium product sales
Estimates revision (%)
declined 1% y/y to Rs5.8bn. The EBIT margin fell 120bps y/y to 14%, but – includes acquisitions
FY25e FY26e

expanded 80bps q/q. DR Axion sales fell 13% to Rs3.1bn. Its EBIT expanded Sales 10.2 25.0
70bps y/y, 280 bps q/q, to 16%. Industrial & engineering sales grew 2% to EBITDA -4.5 5.1
Rs2bn. Its EBIT margin contracted notably to 0.3%. Overall, PAT fell 35% to EPS -20.5 -4.4
Rs617m (ARe Rs692m), below our estimate due to lower operating profit.
Relative price performance
Outlook. Expects revenues of >Rs70bn in FY26. Expects H2 revenue growth 7,000
performance similar to H1. Sustainable EBITDA margins are 17-18%. 6,000
5,000
Valuation. We expect robust 21%/27% revenue/PAT CAGRs over FY24-27 4,000
(incl. acquisitions). Our FY25e-26e EPS changes due to acquisitions (Sunbeam,
3,000
Frongberg) inclusions. We retain our Hold at a higher Rs6,500 TP, 25x P/E
2,000
FY27e (earlier Rs6,000, 30x FY26e). The multiple is lower as we have included
Feb-24
Nov-23
Dec-23
Jan-24

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

May-24
Oct-23

Apr-24

Oct-24
acquisition financials. Risks: Slower orders, less-than-expected industry volume
growth and acquisition-turnaround delays. CRAFTSMA Sensex

Source: Bloomberg
Key financials (YE Mar) - C FY23 FY24 FY25e FY26e FY27e
Sales (Rs m) 31,826 44,517 53,973 71,221 78,934
Net profit (Rs m) 2,484 3,045 2,548 4,518 6,242
EPS (Rs) 117.6 144.2 106.8 189.5 261.8
Growth (%) 52 23 -26 77 38 Mumuksh Mandlesha
Research Analyst
P/E (x) 45.9 37.4 50.5 28.5 20.6
EV / EBITDA (x) 18.3 14.6 15.1 11.2 9.1
P/BV (x) 8.3 6.9 3.8 3.4 2.9
Shagun Beria
RoE (%) 19.8 20.1 11.0 14.1 16.9 Research Associate
RoCE (%) 14.6 15.3 9.6 11.7 13.5
Dividend yield (%) 0.1 0.2 0.2 0.3 0.4
Net debt / equity (x) 0.8 0.9 0.6 0.6 0.5
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

25 October 2024 Craftsman Automation – Acquisition, new segment opportunities to drive value; retaining a Hold

Quick Glance – Financials and Valuations (consol.)

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 (Rs m) 31,826 44,517 53,973 71,221 78,934 Share capital 106 106 119 119 119
Growth (%) 43.6 39.9 21.2 32.0 10.8 Net worth 13,769 16,580 29,847 34,012 39,767
Raw material 16,294 23,713 30,225 39,884 43,414 Debt 11,527 15,464 18,964 21,964 19,464
Employee & other expenses 8,696 12,016 15,075 19,353 20,906 Minority interest 610 937 937 937 937
EBITDA 6,836 8,788 8,673 11,985 14,614 DTL / (Assets) 1,411 1,315 1,315 1,315 1,315
EBITDA margins (%) 21.5 19.7 16.1 16.8 18.5 Capital employed 27,317 34,296 51,063 58,228 61,483
- Depreciation 2,216 2,777 3,356 4,009 4,435 Net tangible assets 19,307 23,724 28,868 31,859 34,423
Other income 125 172 216 248 285 Net intangible assets 32 43 43 43 43
Interest expenses 1,202 1,745 2,054 2,442 2,472 Goodwill 1,900 1,900 1,900 1,900 1,900
PBT 3,543 4,438 3,478 5,781 7,992 CWIP (tang. & intang.) 966 1,786 1,786 1,786 1,786
Effective tax rates (%) 29 24 25 22 22 Investments (strategic) 34 45 9,045 9,045 9,045
+ Associates / (Minorities) -21 -320 -55 9 9 Investments (financial) - - - - -
Adjusted income 2,484 3,045 2,548 4,518 6,242 Current assets (excl. cash) 15,354 18,729 22,795 30,356 32,999
Extraordinary items - - - - - Cash 473 830 1,586 1,461 700
Net income 2,484 3,045 2,548 4,518 6,242 Current liabilities 10,750 12,762 14,960 18,222 19,413
WANS 21 21 24 24 24 Working capital 4,605 5,968 7,835 12,135 13,586
FDEPS (Rs) 117.6 144.2 106.8 189.5 261.8 Capital deployed 27,317 34,296 51,063 58,228 61,483

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 3,548 4,447 3,478 5,781 7,992 P/E (x) 45.9 37.4 50.5 28.5 20.6
+ Non-cash items 3,278 4,512 5,410 6,451 6,907 EV / EBITDA (x) 18.3 14.6 15.1 11.2 9.1
Oper. prof. before WC 6,826 8,959 8,888 12,233 14,899 EV / Sales (x) 3.9 2.9 2.4 1.9 1.7
- Incr. / (decr.) in WC -105 1,924 1,867 4,300 1,451 P/B (x) 8.3 6.9 3.8 3.4 2.9
Others incl. taxes 855 1,902 930 1,263 1,750 RoE (%) 19.8 20.1 11.0 14.1 16.9
Operating cash-flow 6,077 5,133 6,091 6,669 11,698 RoCE (%) - after tax 14.6 15.3 9.6 11.7 13.5
- Capex (tang. + intang.) 7,146 6,281 8,500 7,000 7,000 RoIC (%) - after tax 14.6 15.3 9.6 11.7 13.5
Free cash-flow -1,069 -1,148 -2,409 -331 4,698 DPS (Rs) 3.8 11.3 8.3 14.8 20.4
Acquisitions - - - - - Dividend yield (%) 0.1 0.2 0.2 0.3 0.4
- Div. (incl. buyback & taxes) 79 238 199 353 487 Dividend payout (%) 3.2 7.8 7.8 7.8 7.8
+ Equity raised - - 12,000 - - Net debt / equity (x) 0.8 0.9 0.6 0.6 0.5
+ Debt raised 2,042 3,938 3,500 3,000 -2,500 Receivables (days) 61 47 47 47 47
- Financial investments -67 -22 9,000 - - Inventory (days) 187 160 160 170 170
- Misc. (CFI + CFF) 921 2,217 3,136 2,442 2,472 Payables (days) 159 123 123 123 123
Net cash-flow 39 357 756 -125 -761 CFO : PAT (%) 245 169 239 148 187
*Note: Acquisitions numbers are not included, but is routed through investments. Acquisitions Source: Company, Anand Rathi Research
numbers to be factored post data availability. Source: Company, Anand Rathi Research

Fig 6 – Q2 FY25 revenue mix (consolidated)

Fig 5 – Price movement

Industrial &
(Rs) Engineering
7,000 16%

6,000
Powertrain
5,000 36%

4,000

3,000

2,000

1,000

0
Aluminium
Jun-21

Sep-21

Dec-21

Jun-22

Sep-22

Dec-22

Jul-23

Jan-24

Jul-24
Mar-21

Mar-22

Mar-23

Oct-23

Apr-24

Oct-24

products
48%
Source: Company
Source: Bloomberg

Anand Rathi Research 2

25 October 2024 Craftsman Automation – Acquisitions, new segment opportunities to drive value; retaining a Hold

Earnings call takeaways

◼ Expects consolidated revenues of >Rs70bn in FY26. Expects H2
FY25 revenue growth performance similar to H1 FY25. Sustainable
EBITDA margins are 17-18% (standalone 18-19%, Frongberg in high
single digits and Sunbeam at 8-10%).
◼ Bhiwadi plant (2W alloy wheels). Production started from Aug’24 with
30,000-tonne capacity (4m alloy wheels a year). 20% utilisation; 50-70%
expected by Q4 FY25. Expects revenue of ~Rs1bn in Q4 FY25; at high
utilisation it can generate Rs4bn-5bn revenues. Capex was Rs2.8bn
(Rs800m in H1 FY25) including land (Rs1.3bn) till now.
◼ Kothavadi (general industrial castings). Under trial production. Phase
1 dedicated to sectors like wind/tool castings and has orders of >Rs1bn
annually. Phase 2 will be for heavy engine cylinder blocks used for backup
power generators and has orders from two customers of more than Rs1bn
(execution from FY27; some machining orders would start from FY26).
The Frongberg plant would complement this plant to serve customers
globally. Capex was Rs1.26bn and would be Rs1.78bn for phase 1. MNCs
from neighbouring countries are receiving approval for FDI in India,
which would intensify competition ahead.
◼ Sunbeam. Acquisition completed by 9th Oct’24. Cost ~Rs7bn. Sale of 16
acres of Gurgaon land (~Rs3bn-4bn realization expected) would recover
additional payment. Labour settlement cost was Rs1.6bn and would be
done by Mar’25. Expects slightly positive EBITDA in Q4 FY25. FY26
revenue to be flat at Rs12bn and the EBITDA margin in high single digits.
Margin improvement to be driven by lower employee cost (labour
settlement; employee costs are a high ~Rs2.8bn) and closure of the
Gurgaon plant (shift to the Bhivadi plant). Expects large business potential
in exports due to reduced casting capacities in Europe. Sunbeam will bring
new customers in domestic/exports and add capability in lower tonnage
HPDC techology (Craftsman - high tonnage HPDC and DR Axion –
LPDC and GDC capabilities present). Unabsorbed depreciation to save
Rs1bn in taxes.
◼ Frongberg cost of acquisition increased to €10m as a customer wanted
to buy the foundry.
◼ H1 FY25 EBITDA (excl. new plant ramp-ups/M&A costs) declined 8-
10% y/y. M&A cost was Rs100m; pre-operative expenses were Rs200m
for new plants (total Rs300m or a 250bp margin impact in Q2 FY25).
◼ Industrial margins were lower due to weak profitability in old orders;
expects improvement from H2 FY25 with better profits in new orders.
Automated storage new orderbook was Rs2.5bn (about two years of
timeline) with much better profitability. H1 FY25 storage revenue at
Rs2.62bn with automated revenue share at 33%.
◼ Standalone debt expected at Rs16bn by FY26. No major debt for
subsidiaries.
◼ Expects FY25 capex (standalone) at Rs8.5bn (including Rs2bn
maintenance capex). Expects FY26 capex to be much lower.
◼ No large acquisitions expected ahead.
◼ Value additions broadly at ~60% in powertrain, ~40% in aluminium and
~30% in industrials.

Anand Rathi Research 3

25 October 2024 Craftsman Automation – Acquisitions, new segment opportunities to drive value; retaining a Hold

Result highlights
Fig 7 – Quarterly performance
(Rs m) Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Y/Y (%) Q/Q (%) FY25 YTD FY24 YTD Y/Y (%)
Revenue 11,791 11,297 11,053 11,512 12,140 3.0 5.5 23,651 22,167 6.7
Expenditure 9,416 9,095 8,984 9,539 10,212 8.5 7.1 19,750 17,650 11.9
as % of sales 79.9 82.3 81.3 82.9 84.1 83.5 79.6
Consumption of RM 6,270 6,010 5,984 6,484 6,752 7.7 4.1 13,236 11,719 12.9
as % of sales 53.2 54.4 54.1 56.3 55.6 56.0 52.9
Employee cost 722 763 730 738 832 15.2 12.7 1,571 1,392 12.8
as % of sales 6.1 6.9 6.6 6.4 6.9 6.6 6.3
Other expenditure 2,423 2,322 2,271 2,316 2,628 8.4 13.4 4,944 4,539 8.9
as % of sales 20.6 21.0 20.5 20.1 21.6 20.9 20.5
EBITDA 2,375 2,202 2,069 1,973 1,928 (18.8) (2.3) 3,901 4,517 (13.6)
Depreciation 668 703 723 725 762 13.9 5.0 1,486 1,351 10.0
EBIT 1,707 1,499 1,346 1,248 1,166 (31.7) (6.6) 2,415 3,166 (23.7)
Other income 47 35 53 48 64 36.4 33.1 113 84 33.8
Interest 416 442 464 492 413 (0.6) (15.9) 905 840 7.7
PBT 1,338 1,093 935 805 817 (38.9) 1.5 1,623 2,411 (32.7)
Total tax 296 279 233 212 205 (30.8) (3.6) 417 562 (25.8)
Minority interest -100 -84 -82 -63 0 (100.0) (100.0) (63) (163)
Share of profit from JV 2 1 3 2 4 66.7 122.2 6 4
Adj. PAT 945 731 623 532 617 (34.7) 16.0 1,149 1,690 (32.0)
Extraordinary items: Loss / (Gain) 0 0 0 0 0 - -
Reported PAT 945 731 623 532 617 (34.7) 16.0 1,149 1,690 (32.0)
Adj. EPS 44.8 34.6 29.5 22.3 25.9 (42.2) 16.0 48.1 80.0 (39.8)

Margins (%) (bps) (bps) (bps)

Gross 46.8 45.6 45.9 43.7 44.4 (244) 71 44.0 47.1 (309)
EBIDTA 20.1 19.9 18.7 17.1 15.9 (426) (126) 16.5 20.4 (388)
EBIT 14.5 13.6 12.2 10.8 9.6 (487) (124) 10.2 14.3 (407)
PAT 8.0 6.6 5.6 4.6 5.1 (294) 46 4.9 7.6 (277)
Effective tax rates 22.1 29.8 24.9 26.4 25.0 294 (132) 25.7 23.3 238
Source: Company

Anand Rathi Research 4

25 October 2024 Craftsman Automation – Acquisitions, new segment opportunities to drive value; retaining a Hold

Valuations
We are positive about the medium to long term due to fresh opportunities in
import substitution, lightweighting and industrial segments (heavy engines, off-
highway, wind, capital goods; annual potential of over $100m in the next 4-5
years), reasonably priced acquisitions (Sunbeam, Frongberg and more ahead)
and new capacity expansion (increase by 25%) driving robust growth in
powertrain and aluminium products. Industrial & Engineering growth would be
boosted by storage solutions and renewables.
We expect consolidated revenue (excl. acquisitions) to clock a 21% CAGR over
FY24-27, led by powertrain (a 16% CAGR), aluminium (11%), Sunbeam
(Rs13bn), Frongberg (Rs2.6bn) and industrial engineering (10%). Powertrain
growth would be driven by a ramp-up of the Kothavadi plant (phase 1 general
industry castings). The aluminium segment would be boosted by supply of 2W
alloy wheels from the Bhiwadi plant (4m wheel capacity with Rs4bn-5bn
revenue potential). The EBIT margin would improve to 13.3% in FY26 (from
11.4% in FY25), due to the ramp-up of the new plants, operating leverage and
lower losses for Sunbeam.
New opportunites. Heavy engines expected to reach >$100m annual revenues
for Craftsman in the next 4-5 years due to strong end-demand (AI data centres
driving generator demand; OEM engine manufacturers order-books are full and
double-digit revenue growth expected for them) and casting-supply constraints
in the USA/Europe/Brazil and de-risk from China expected to be major
opportunities ahead.
Revenue diversification (less EV exposure). With the company’s entry into
new product categories/end segments (industrial engines, body casting parts)
driven by acquisitions, the revenue share of EV-related segments would reduce;
hence, improve terminal growth for the company and drive better valuation
multiples.
Valuation. We expect 21%/27% revenue/PAT CAGRs over FY24-27 (incl.
acquisitions). We recommend a Hold at a Rs6,500 TP, 25x P/E on FY27e.

Fig 8 – Change in estimates

Introduction
Old Revised Change (%)

(Rs m) FY25e FY26e FY25e FY26e FY25 FY26 FY27e

Revenue 48,962 56,988 53,973 71,221 10.2 25.0 78,934

EBITDA 9,079 11,405 8,673 11,985 -4.5 5.1 14,614
% 18.5 20.0 16.1 16.8 18.5
Adj. PAT 3,204 4,728 2,548 4,518 -20.5 -4.4 6,242
EPS (Rs) 134.3 198.2 106.8 189.5 -20.5 -4.4 261.8
Source: Anand Rathi Research

Anand Rathi Research 5

25 October 2024 Craftsman Automation – Acquisitions, new segment opportunities to drive value; retaining a Hold

Fig 9 – Key assumptions

CAGR (%)
(Rsm) FY22 FY23 FY24 FY25e FY26e FY27e
FY24-27e
Powertrain 11,544 15,271 15,584 17,454 21,817 24,435 16
y/y % 42 32 2 12 25 12
Aluminium products 5,520 9,346 21,536 22,182 25,953 29,068 11
y/y % 67 69 130 3 17 12
Industrial & Engineering 5,107 7,209 7,398 8,137 8,951 9,846 10
y/y % 26 41 3 10 10 10
Sunbeam 5,000 12,000 12,960
y/y % 140 8
Frongberg 1,200 2,500 2,625
y/y % 108 5
Total revenues 22,170 31,826 44,517 53,973 71,221 78,934 21
y/y % 43 44 40 21 32 11

EBIT (Rsm) – includes other income

Powertrain 3,037 3,820 2,916 2,880 3,927 4,521 16
y/y % 38 26 (24) (1) 36 15
Aluminium products 95 773 3,220 3,106 3,763 4,360 11
y/y % 277 710 316 (4) 21 16
Industrial & Engineering 644 672 494 163 358 492 (0)
y/y % (19) 4 (27) (67) 120 38
Sunbeam (100) 600 907
y/y % 51
Frongberg 84 175 184
y/y % 108 5
Total EBIT 3,777 5,266 6,630 6,132 8,823 10,464 16
y/y % 25 39 26 (8) 44 19

EBIT %
Powertrain 26.3 25.0 18.7 16.5 18.0 18.5
Aluminium Products 1.7 8.3 15.0 14.0 14.5 15.0
Industrial & Engineering 12.6 9.3 6.7 2.0 4.0 5.0
Sunbeam (2.0) 5.0 7.0
Frongberg 7.0 7.0 7.0
Total 17.0 16.5 14.9 11.4 12.4 13.3
Source: Company, Anand Rathi Research

Fig 10 – Standard deviation of 1-year-forward P/E (average: 28x)

50

45 +2SD

40
+1SD
35

30
Mean
25

20
-1SD

15
Aug-24
Aug-21
Sep-21

Nov-21
Dec-21

Sep-22

Nov-22
Dec-22

Aug-23
Sep-23

Nov-23

Sep-24
Mar-21

Jun-21
Apr-21

Feb-22

Feb-23

Feb-24

Apr-24
May-24
Jul-21

Oct-21

Mar-22
Apr-22
May-22
Jun-22
Jul-22

Oct-22

Jan-23

Mar-23
May-23
Jun-23
Jul-23

Oct-23

Jan-24

Mar-24

Jun-24

Oct-24

Source: Bloomberg, Anand Rathi Research

Risks
◼ Slower order wins
◼ Less-than-expected industry volume growth
◼ Acquisition-turnaround delays.

Anand Rathi Research 6

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 24 October 2024)
TP Share
7,000 CRAFTSMA Date Rating (Rs) Price (Rs)
1 08-Jul-21 Buy 2,655 1,987
6,000 2 15-Jul-21 Buy 2,655 2,041
3 19-Oct-21 Buy 3,055 2,550
5,000 12 14 4 25-Jan-22 Buy 3,350 2,100
10 5 10-May-22 Buy 3,261 2,144
4,000 11 6 26-Jul-22 Buy 2,667 3,261
8 9 13
7 7 17-Oct-22 Buy 3,539 2,822
3,000 6 8 23-Jan-23 Buy 3,891 3,351
12 3 9 10-May-23 Buy 4,000 3,380
2,000 10 24-Jul-23 Buy 4,850 4,756
4 5 11 31-Oct-23 Hold 5,550 4,879
1,000 12 30-Jan-24 Hold 5,000 4,519
13 29-Apr-24 Hold 4,450 4,424
Nov-21

Nov-22

Nov-23
Jul-21

Jul-22

Jul-23

Jul-24
Mar-21

Jan-22
Mar-22

Jan-23
Mar-23

Jan-24
Mar-24
May-21

Sep-21

May-22

Sep-22

May-23

Sep-23

May-24

Sep-24
14 15-Aug-24 Hold 6,000 5,352

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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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. www.rathionline.com
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 - [email protected], Contact no. +91 22 6281 7000
Grievance officer-Madhu Jain-email id- [email protected], 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.