Jaypee IT Sector Update

8/6/2019 Jaypee IT Sector Update

1/17

IT Sector Review02 May 2011

Jaypee Research De

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Please refer to the disclaimer at the end of the report

Rating and Recommendations (`)

Co. Name CMP TP RECO

Infosys 2906 3300 BUY

TCS 1164 1315 BUY

Wipro 450 480 Neutral

HCL Tech 520 575 BUY

Patni Comp. 427 470 Neutral

Persistent 383 450 Neutral

Mindtree 368 410 Neutral

KPIT Cummins 164 183 Neutral

Valuation (on FY12E)

Co. Name P/E P/BV EV/ Sales

Infosys 20.7 4.9 4.7

TCS 21.1 7.5 4.9

Wipro 19.3 4.3 2.9

HCL Tech 21.0 4.1 2.3

Patni Comp. 11.8 1.6 0.9

Persistent 13.1 2.0 1.1

Mindtree 10.8 1.7 0.8

KPIT Cummins 14.4 2.3 0.9

Vijay Gautam

[email protected]

Krupa B Shah

[email protected]

Contact No:

+91 22 43542019

Q4FY11 results of Indian IT companies were slightly lower than ourexpectations. However, in wake of robust demand environment and

volume flow, outlook remains robust. The earnings season kick started

with Infosys reporting surprisingly lower numbers. Streets expectations

lowered for a while but were raised again with other large caps reporting

above average results. Large cap IT stocks have remained liquid, while

midcaps have remained subdued due to tepid results yet again.

Demand scenario: Apart from Infosys, which reported a decline in revenue

from US, all companies have reported growth in revenue from US. Infosys

result seems to be an aberration. Nevertheless, it has given a guidance of

18-20% growth for FY12, higher than 16-18% growth guidance it gave forFY11 initially. Demand scenario appears intact and robust.

High performing verticals: Since pent-up demand in BFSI is exhausting, we

expect BFSI growth rate to subside, but other verticals like retail, healthcare

and logistics and service lines like Infra Management, Testing and R&D

should propel growth. We expect Telecom vertical to remain subdued.

Margins: IT job market remains dynamic and there has been a battle for

talent. Employee remains a king and often wins salary negotiation rounds.

Also, the companies are working at high end of utilization. In absence of anylever, margins are expected to remain under pressure and margin recovery

looks remote possibility. After registering a margin fall of 120 bp in Q4FY11,

Infosys again guided for a fall of 300 bp and 100 bp for Q1FY12 and FY12.

Pricing: Pricing scenario is positive, as most companies expect 1-2 percent

rise in onsite billing rates and 2-4 percent in offshore billing rates. Our

meetings with Infosys, Wipro and Mindtree confirmed that they are

expecting positive movement in offshore billing rates.

High valuation: Large caps are trading at high multiples on back of goodgrowth and margins owing to large end-to-end servicing contracts, project

efficiencies and managing personnel cost. Midcaps keep trading at low

multiple given the growth and margin prospects. There is limited comfort in

terms of valuation as all positive factors already appear priced in. Due to

valuation factor, we remain NEUTRAL on the sector.

RESULT REVIEW Q4FY11 IT SECTOR NEUTRAL
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2/17


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Infosys

Infosys reported revenue of $1,602 mn (+1.1% QoQ, 23.6% YoY). Toplinegrew by 25.7% in FY12. EBIT margin declined by 120 bp to 29.0%. EPS stood at

`31.82 (+2.2% QoQ, +17.1% YoY). Cash and cash equivalents stands at

`166,660 mn. The company has 130,820 employees on board.

Revenue by Industry ($mn) Q4FY11 Q3FY11 Q4FY10 QoQ YoY

BFSI $572 $574 $451 -0.3% 26.8%

Banking & FS $457 $441 $351 3.6% 30.0%

Insurance $115 $133 $100 -13.4% 15.6%

Manufacturing $327 $311 $262 5.2% 24.8%

Telecom $191 $230 $198 -17.1% -3.9%

Retail $232 $198 $168 17.2% 37.9%

Energy & Utilities $93 $97 $75 -3.9% 23.6%

Transport & Logistics $34 $29 $23 17.9% 44.2%

Services $83 $79 $64 5.1% 31.2%

Others $70 $68 $54 3.4% 29.5%

Total $1,602 $1,585 $1,296 1.1% 23.6%

Revenue by Business ($mn) Q4FY11 Q3FY11 Q4FY10 QoQ YoY

ADM $610 $604 $513 1.1% 18.9%

Application Development $258 $247 $218 4.3% 18.5%

Application Maintenance $352 $357 $295 -1.2% 19.3%

Business Process Mgmt $90 $89 $80 1.1% 11.6%Consulting & Pkg. Impl. $407 $411 $337 -0.9% 20.8%

Infra Management $98 $95 $93 2.8% 4.7%

Product Engineering $38 $41 $23 -6.7% 64.8%

System Integration $98 $89 $58 10.1% 67.6%

Testing Services $117 $120 $86 -2.9% 36.7%

Others $58 $52 $40 10.3% 43.5%

Total services $1,515 $1,501 $1,231 1.0% 23.1%

Product revenues $87 $84 $65 3.0% 33.5%

Total $1,602 $1,585 $1,296 1.1% 23.6%

Revenue by geography ($mn) Q4FY11 Q3FY11 Q4FY10 QoQ YoY

North America 1,020$ 1,025$ 857$ -0.5% 19.1%Europe 354$ 346$ 292$ 2.5% 21.4%

India 43$ 35$ 18$ 24.0% 138.4%

Rest of the World 184$ 179$ 130$ 2.9% 42.2%

Total 1,602$ 1,585$ 1,296$ 1.1% 23.6%
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We value Infosys at 20x FY13E EPS and arrive at target price of`3,300.

Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11

EBIT margin 31.1% 30.1% 28.3% 30.2% 30.2% 29.0%

movement (bp) 76 (98) (178) 188 1 (122)

Utilization Q3 FY10 Q4 FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11

Incl. trainees 68.8% 69.3% 73.0% 74.3% 72.6% 68.4%

Excl. trainees 76.2% 77.1% 78.7% 81.2% 80.7% 75.4%

Client matrix Q4FY11 Q3FY11 Q4FY10

Number of active clients 620 612 575

$1mn+ clients 366 350 338

$10mn+ clients 126 121 97

$20mn+ clients 73 68 59

$50mn+ clients 28 29 26

$100mn+ clients 11 11 6

Top client contribution 4.7% 6.9% 4.6%

Top 5 client contribution 15.4% 15.4% 15.8%

Top 10 client contribution 24.9% 25.7% 25.8%

% Repeat business 97.0% 97.6% 95.4%

DSO 63 62 59

2.00%

-0.58%

1.13%

3.14%

1.39%0.73%0.74%

-2.63%

-4.06%

0.24%

2.61%

3.61%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%


QoQ Growth in Billing Rates

Onsite Offshore


4/17


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TCS

TCS reported revenue of $2.2 bn (+4.7% QoQ, +33.2% YoY). ). Operatingmargin declined by 6 bp to 28.0%. EPS stood at `13.41 (+11% QoQ). Cash and

cash equivalents stands at `47,401 mn and employee strength is 198,614.

Revenue by industry ($mn) Q4FY11 Q3FY11 Q4FY10 QoQ YoY

BFSI 994$ 956$ 748$ 4.0% 32.9%

Telecom 272$ 255$ 204$ 6.5% 33.2%

Retail & Distribution 247$ 234$ 207$ 5.7% 19.1%

Manufacturing 166$ 154$ 140$ 7.6% 18.7%

Hi-Tech 110$ 107$ 86$ 2.6% 27.9%

Life Science & Healthcare 117$ 111$ 103$ 4.7% 13.5%

Transportation 76$ 73$ 59$ 4.7% 29.4%

Energy & Utilities 94$ 94$ 56$ -0.1% 69.5%

Media and Entertainment 47$ 49$ 35$ -4.4% 33.2%

Others 121$ 109$ 47$ 10.9% 156.8%

Revenue by services ($mn) Q4FY11 Q3FY11 Q4FY10 QoQ YoY

ADM 1,044$ 965$ 802$ 8.2% 30.1%

Business Intelligence 119$ 114$ 91$ 4.7% 30.7%

Enterprise Solutions 227$ 206$ 170$ 10.1% 33.2%

Assurance Services 153$ 152$ 98$ 0.3% 56.1%

Engineering & Industrial Services 108$ 103$ 81$ 4.7% 33.2%

Infrastructure Services 211$ 225$ 140$ -6.3% 50.8%

Global Consulting 49$ 49$ 42$ 0.1% 17.2%

Asset Leveraged Solutions 81$ 86$ 67$ -5.8% 19.8%

BPO 254$ 244$ 194$ 3.8% 30.8%

Revenue by Geography ($mn) Q3FY11 Q2FY11 Q3FY10 QoQ YoY

North America 1,210$ 1,147$ 910$ 5.5% 32.9%

Latin America 81$ 66$ 74$ 21.6% 8.9%

UK 348$ 343$ 256$ 1.4% 35.8%

Continental Europe 209$ 199$ 169$ 4.7% 23.8%

India 207$ 197$ 150$ 4.7% 37.6%

Asia Pacific 148$ 148$ 94$ 0.1% 56.9%

Middle East and North Africa 43$ 43$ 32$ -0.5% 33.2%

Margins Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11

Operating Margin 27.3% 27.5% 27.1% 28.0% 28.1% 28.0%

Net Margin 23.5% 25.0% 22.4% 22.7% 24.1% 23.6%

Utilization Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11

Incl. trainees 77.2% 74.3% 74.8% 77.7% 77.1% 75.1%

Excl. trainees 81.1% 81.8% 82.6% 83.8% 83.8% 82.4%


5/17


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We value TCS at 21x FY13E EPS of`62.60 to arrive at target price of`1,315.

Wipro

Revenue for IT Services grew to $1,400 mn (+4.2%QoQ, +20.1% YoY). EBIT

margin for IT Services is 22.1%, flat for the quarter. EPS stood at `5.60 (-2.4%

QoQ). Cash and cash equivalents stands at `61,141 mn. The company has

283,153 employees on board.

Client matrix Q4 FY11 Q3 FY11 Q4 FY10

Active Clients 969 959 917

$1 mn+ clients 458 434 409$10 mn+ clients 143 139 118

$20 mn+ clients 81 76 63

$50 mn+ clients 27 25 23

$100 mn+ clients 8 9 7

Repeat Business 97.1% 97.6% 95.7%

Top client 7.4% 7.7% 8.2%

Top 5 clients 21.4% 21.9% 21.8%

Top 10 clients 29.6% 30.1% 30.2%


Technology 102.2$ 100.8$ 100.6$ 1.4% 1.6%

Telecom 121.8$ 110.2$ 95.9$ 10.5% 27.0%

Communication & Media 120.4$ 118.3$ 103.0$ 1.8% 16.9%

Financial Services 373.8$ 366.9$ 305.4$ 1.9% 22.4%

Manufacturing 210.0$ 200.3$ 173.2$ 4.9% 21.3%

Healthcare & Services 110.6$ 107.5$ 107.6$ 2.9% 2.7%

Retail & Transportation 218.4$ 207.0$ 172.0$ 5.5% 27.0%

Energy & Utilities 142.8$ 133.1$ 112.3$ 7.3% 27.1%


Infrastructure Services 302.4$ 287.6$ 252.7$ 5.1% 19.7%

Testing services 148.4$ 147.8$ 136.9$ 0.4% 8.4%

Package Implementation 186.2$ 177.4$ 148.6$ 5.0% 25.3%

BPO 137.2$ 125.0$ 127.5$ 9.8% 7.6%

Product Engineering 68.6$ 64.5$ 48.0$ 6.3% 43.0%

ADM 557.2$ 541.6$ 456.3$ 2.9% 22.1%Total 1,400.0$ 1,344.0$ 1,170.0$ 4.2% 19.7%

Consulting 43.4$ 41.7$ 31.6$ 4.2% 37.4%

R&D Business 182.0$ 181.4$ 31.6$ 0.3% 476.1%


6/17


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We value the stock at 18x FY13E EPS of`26.67 to arrive at price target of`480.


US 754.6$ 728.4$ 663.4$ 3.6% 13.7%

Europe 392.0$ 380.4$ 307.7$ 3.1% 27.4%

Japan 21.0$ 20.2$ 17.6$ 4.2% 19.7%

India & Middle East 127.4$ 119.6$ 103.0$ 6.5% 23.7%

APAC & Other EM 105.0$ 95.4$ 78.4$ 10.0% 33.9%

Margins Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11

Operating Margin 19.5% 19.2% 20.2% 18.1% 18.4% 17.9%

Net Margin 17.4% 17.4% 18.4% 16.7% 17.0% 16.7%

Utilization Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11

Incl. trainees 80.7% 79.3% 78.4% 78.0% 75.6% 76.1%

Excl. trainees 84.5% 83.0% 81.6% 82.4% 79.9% 79.1%

Attrition Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11Voluntary 13.4% 17.1% 23.0% 23.5% 21.7% 20.9%

Involuntary 3.6% 2.1% 1.4% 1.4% 2.2% 2.5%

BPO 15.0% 17.0% 16.0% 14.2% 14.2% 15.5%

Client Pyramid Q4FY11 Q3FY11 Q4FY10

Active Clients 904 880 845

New Clients 68 36 27


7/17


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HCL Tech

The company reported revenue of $915 mn (+5.8% QoQ, +33.5% YoY). EBITmargins increased by 130bp to 14.4%. EPS stood at `6.67 (+16.6% QoQ). Cash

and cash equivalents stands at `4,943 mn and employee strength is 73,420.

Revenue by Industry vertical ($mn) Q3FY11 Q2FY11 Q3FY10 QoQ YoY

Financial Services 239.6$ 213.4$ 174.7$ 12.3% 37.1%

Manufacturing 249.7$ 234.2$ 182.9$ 6.6% 36.5%

Telecom 94.2$ 93.3$ 79.5$ 0.9% 18.5%

Retail & CPG 79.6$ 79.5$ 51.4$ 0.1% 54.8%

Media Publishing & Entertainment 60.4$ 58.8$ 54.1$ 2.7% 11.5%

Healthcare & Life Sciences 73.2$ 72.6$ 51.4$ 0.8% 42.4%

Energy-Utilities-Public Sector 66.8$ 62.2$ 48.0$ 7.3% 39.2%

Others 51.2$ 50.1$ 43.2$ 2.2% 18.6%

Total 914.5$ 864.1$ 685.2$ 5.8% 33.5%


Enterprise applications services 195.7$ 184.1$ 146.6$ 6.3% 33.5%

Engineering and R&D services 161.9$ 159.9$ 130.2$ 1.3% 24.3%

Custom applications (industry solutions) 292.6$ 274.8$ 204.9$ 6.5% 42.8%

Infrastructure Management services 214.0$ 197.0$ 152.1$ 8.6% 40.7%

BPO services 49.4$ 48.4$ 52.1$ 2.1% -5.2%

Total 913.6$ 864.1$ 685.9$ 5.7% 33.2%


USA 496.6$ 493.4$ 407.7$ 0.6% 21.8%

Europe 246.9$ 229.9$ 182.9$ 7.4% 35.0%

Rest of the World 171.0$ 140.8$ 94.6$ 21.4% 80.9%

Total 914.5$ 864.1$ 685.2$ 5.8% 33.5%


EBIT Margin 16.6% 16.2% 15.3% 12.9% 13.1% 14.4%

Net Margin 9.8% 11.2% 10.0% 8.9% 10.3% 11.3%

Utilization Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11

Incl. trainees 76.4% 76.2% 72.9% 70.1% 70.1% 71.9%

Excl. trainees 77.9% 79.0% 77.0% 74.1% 75.0% 76.3%


8/17


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We value HCL Tech at 20x its FY12E EPS of`32.0 to arrive at target price of

`575.

Patni Computers

Revenues stood at $190.3 mn (+4% QoQ, +10.4% YoY). EBIT margin at 16.9%

was down by 120 bp QoQ. EPS stood at `8.75 (-33.3% QoQ). Employee

strength is 17,739.

Client Matrix Q3FY11 Q2FY11 Q3FY10

Active clients 453 434 404

$1 mn+ clients 324 312 281$10 mn+ clients 70 67 55

$20 mn+ clients 31 28 22



Top 5 clients 16.2% 16.8% 17.8%

Top 10 clients 25.2% 25.6% 25.8%

Top 20 clients 36.2% 36.6% 36.6%

Repeat Business 94.5% 94.3% 93.4%

DSO 55 61 84

Revenue by Industry ($mn) Q1CY11 Q4CY10 Q1CY10 QoQ YoY

Insurance 55.2$ 57.3$ 50.0$ -3.7% 10.4%

Manuf., Retail & Dist. 58.2$ 56.0$ 53.1$ 4.0% 9.7%Financial Services 21.1$ 21.0$ 20.2$ 0.4% 4.8%


Communication & Media 22.8$ 17.8$ 21.0$ 28.6% 8.6%

Total 190.3$ 183.0$ 172.3$ 4.0% 10.4%

Revenue by Business ($mn) Q1CY11 Q4CY10 Q1CY10 QoQ YoY

ADM 111.3$ 112.0$ 111.3$ -0.6% 0.0%

Packaged software 25.5$ 21.0$ 23.1$ 21.2% 10.4%


Infra Management 9.9$ 9.0$ 8.6$ 10.4% 14.9%

BPO 19.4$ 18.1$ 8.4$ 7.1% 129.9%

Total 190.3$ 183.0$ 172.3$ 4.0% 10.4%

Revenue by Geography ($mn) Q1CY11 Q4CY10 Q1CY10 QoQ YoY

Americas 148.4$ 149.7$ 137.5$ -0.8% 8.0%

Europe 27.8$ 20.7$ 23.1$ 34.4% 20.3%

Asia-Pacific 14.1$ 12.6$ 11.7$ 11.5% 20.2%


9/17


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We value Patni at 10.5x CY12E EPS of`44.4 to arrive at the target price of

`470.

Persistent SystemsRevenue has been $47.02 (+8.8% QoQ, +25.9% YoY). EBIT margins fell by 380

bp to stand at 15.7%. EPS stood at `8.28. Cash and cash equivalents stands at

`1,000 mn and employee strength is 6,370.

Margins Q4 CY09 Q1 CY10 Q2 CY10 Q3 CY10 Q4 CY10 Q1 CY11

Operating 19.5% 21.0% 18.8% 18.0% 18.1% 16.8%

Net 23.8% 19.3% 18.9% 16.1% 21.5% 13.9%

Q4 CY09 Q1 CY10 Q2 CY10 Q3 CY10 Q4 CY10 Q1 CY11

Utlization 77.4% 79.9% 75.0% 74.0% 72.4% 70.0%

Client Pyramid Q1 CY11 Q4 CY10 Q1 CY10

Active 299 297 260

New 14 19 9

$1-$5mn 67 71 65

$5-$10 mn 14 12 11

$10-$50 mn 12 13 13

$50 mn+ 3 3 3

%

Repeat business 95.8% 95.6% 92.5%

Top client 10.5% 11.5% 11.7%

Top 5 clients 33.7% 35.9% 36.4%

Top 10 clients 45.7% 48.8% 48.7%


Telecom 9.65$ 9.94$ 7.58$ -3% 27%

Infra & Systems 32.12$ 28.26$ 26.02$ 14% 23%

Life Sciences 5.25$ 5.01$ 3.73$ 5% 41%


North America 40.58$ 36.90$ 32.49$ 10.0% 24.9%Europe 2.74$ 2.29$ 2.39$ 19.5% 14.5%

Asia-Pacific 3.70$ 4.02$ 2.45$ -7.8% 51.2%


10/17


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We value the stock at 12x FY13E EPS of`37.5 to arrive at target price of`450.

Mindtree

Revenue was $86.26 mn (+1.2% QoQ, +15.9% YoY). EBIT margin improved to

9.1% (+50 bp QoQ, +160 bp YoY). EPS stood at `7.81 (+4.7% QoQ). Cash andcash equivalents stand at `459 mn and total mindtree minds are 9,547.

Margin Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11

EBIT margin 20.7% 22.7% 19.2% 20.2% 19.5% 15.7%

Net margin 19.1% 21.6% 17.8% 18.6% 17.9% 15.0%


Utilization 72.6% 76.5% 76.8% 72.9% 73.2% 73.0%


Attrition 10.8% 13.7% 16.3% 18.6% 21.5% 19.6%

Client Pyramid Q4 FY11 Q3 FY11 Q4 FY10

Total clients 229 207 195

> $3 mn 9 9 8

$1 mn - $3 mn 26 29 23

< $1 mn 194 169 164Top client 17.0% 14.4% 14.7%

Top 5 clients 39.0% 36.8% 41.5%

Top 10 clients 51.2% 48.0% 51.7%

Rev. by Business ($mn) Q4 FY11 Q3 FY11 Q4 FY10 QoQ YoY

IT Services 53.4$ 50.6$ 39.7$ 5.6% 34.6%

Prod. Engg/ R&D 32.9$ 34.7$ 34.8$ -5.3% -5.5%

Rev. by Geography ($mn) Q4 FY11 Q3 FY11 Q4 FY10 QoQ YoY

US 51.8$ 51.5$ 47.8$ 0.5% 8.3%

Europe 18.9$ 16.5$ 12.9$ 14.4% 47.1%

India 7.8$ 7.2$ 5.2$ 8.2% 48.1%

APAC & other EM 7.8$ 10.0$ 8.6$ -22.0% -8.6%


EBIT margin 28.3% 7.5% 8.5% 8.1% 8.6% 9.1%

Net margin 24.6% 3.4% 4.5% 6.0% 7.7% 8.1%


11/17


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We value the stock at 9.5x FY13 EPS of`43.20 to arrive at target price of

`410.

KPIT Cummins

Revenue was $67.92 mn (+12.5% QoQ, +59.2% YoY). Operating margin

declined by 720 bp YoY to 10.7%. EPS stood at `3.00 (-1.6% QoQ). Cash and

cash equivalents stand at `2,096 mn and employee strength is 6,514.

Client Matrix Q4 FY11 Q3 FY11 Q4 FY10

Active clients 277 269 258

New clients added 39 30 27$10 mn+ clients 6 5 5

$5-10 mn clients 8 9 8

$1-5 mn clients 53 49 47


12/17


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We value the stock at 13x FY13E EPS of`15.27 to arrive at target price of

`183.

Client Matrix Q4FY11 Q3FY11 Q4FY10

No. of active customers 155 152 141

No. of customers added 3 5 2No. of star customers 28 28 28

$1 mn+ clients 40 40 32

Top client (Cummins) 20.4% 24.1% 24.9%

Star Customers- Non Cummins 34.8% 35.2% 39.5%

Top 10 clients 51.2% 51.2% 48.5%

Repeat Business 90%+ 90%+ 90%+

Days of Debtors 65 64 66


13/17


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Jaypees Institutional Equities Desk

RESEARCH

Head of Equity Research Oil & Gas Automobiles

Abbas Merchant +91 22 4354 2010 Chirag Dhaifule +91 22 4354 2015 Gaurant Dadwal +91 22 4354 2018

Kavita Jaiswal +91 22 4354 2001

Information Technology Infrastructure

Vijay Gautam +91 22 4354 2019 Metals & Mining Amit Kumar +91 22 4354 2024

Krupa Shah +91 22 4354 2019 Rahul Singhvi +91 22 4354 2016

Sumit Poddar +91 22 4354 2016 Real Estate

Pharmaceuticals Hitendra Gupta +91 22 4354 2023

Divya Agarwal +91 22 4354 2011 Power & Shipping

Jyotsna Sawdekar +91 22 4354 2017 Economics

Cement Prasun Kumar +91 22 4354 2017 Prasad Shete +91 22 4354 2007

Jinal Joshi +91 22 4354 2012

Capital Goods Technical

FMCG Chirag Muchhala +91 22 4354 2007 Pranjal Shah +91 22 4062 1004

Sachin Bobade +91 22 4354 2013 Ruchika Dalmia +91 22 4354 2007

Quantitative

Media Telecom Raunak Chandra +91 22 4062 1016

Priyanka Jadhav +91 22 4354 2014 Archit Singhal +91 22 4354 2009 Vinit Jain +91 22 4062 1016

SALES

Sales (Asia) Sales Trading (Equity) Sales Trading (Derivatives)

Vishad Turakhia +91 22 4062 1012 Krishnakant Purohit +91 22 4062 1018 Premal Shah +91 22 4062 1004

Hitash Dang +91 22 4354 1017 Jaiprakash Kataria +91 22 4062 1003 Shirish Garodia +91 22 4062 1008

Rajat Vohra +91 22 4062 1011 Gaurav Shah +91 22 4062 1007 Ravi Agarwal +91 22 4062 1009

Gautam Trehan +91 22 4354 2025 Mahesh Bohra +91 22 4062 1005 Rahul Sanghvi +91 22 4062 1009

Yogesh Dhumal +91 22 4062 1002 Dhruval Gala +91 22 4062 1032

Sales (United States) Sumeet Ramchandani +91 22 4062 1052 Deep Shroff +91 22 4062 1032

Amit Bansal +1 405 269 1322 Jitendra Tolani +91 22 4062 1052 Deepak Purohit +91 22 4062 1099

Vishal Vadel +91 22 4062 1099


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Disclaimer:

This document does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as anofficial confirmation of any transaction. This document is subject to changes without prior notice and is intended only for

the person or entity to which it is addressed and may contain confidential and/or privileged material and is not for any

type of circulation. Any review, retransmission, or any other use is prohibited.

The information contained herein is from publicly available data or other sources believed to be reliable. While we would

endeavor to update the information herein on reasonable basis, Jaypee Capital Services Limited, its subsidiaries and

associated companies, their directors and employees are under no obligation to update or keep the information current.

Also, there may be regulatory, compliance, or other reasons that may prevent Jaypee Capital Services Limited and

affiliates from doing so. We do not represent that information contained herein is accurate or complete and it should not

be relied upon as such. This document is prepared for assistance only and is not intended to be and must not alone be

taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each

recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation

of an investment in the securities of companies referred to in this document (including the merits and risks involved).

The investment discussed or views expressed may not be suitable for all investors. It does not have regard to the specific

investment objectives, financial situation and the particular needs of any specific Person/ Institutions etc. who may

receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or

investment strategies discussed or recommended in this report and should understand that statements regarding future

prospects may not be realized and there is substantial risk of loss. Jaypee Capital Services Limited does not takeresponsibility thereof. This is further clarified that no kind of negligence, misconduct or default whatsoever on the part of

Jaypee Capital Services Limited can be attributed by any person on the basis of this research publication or any par

thereof.

Reports based on technical analysis centers on studying charts of a stock's price movement 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. Affiliates of Jaypee Capital Services Limited may have issued other reports that are inconsistent with and

reach different conclusions from, the information presented in this report.

This report is not directed 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, regulation or which would subject Jaypee Capital Services Limited and affiliates to any registration or

licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all

jurisdictions or to a certain category of investors. Persons in whose possession this document may come are required to


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inform themselves of, and to observe, such applicable restrictions. Though disseminated to all the customers

simultaneously, not all customers may receive this report at the same time. Jaypee Capital Services Limited will not treat

recipients as customers by virtue of their receiving this report.

We and our affiliates, officers, directors, and employees will from time to time have long or short positions in, act as

principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.

Our salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies

to our clients and our proprietary trading desks that reflect opinions that are contrary to the opinions expressed in this

research. Our asset management area, our proprietary trading desks and investing businesses may make investment

decisions that are inconsistent with the recommendations or views expressed in this research.

Our research personnel may participate in company events such as site visits and are generally prohibited from accepting

payment by the company of associated expenses unless pre-approved by authorized members of Research Management.

Trading in securities, futures, options or other financial instruments entails significant risk and is not appropriate for all

investors. Electronic trading also entails significant risk. Losses may exceed the principal invested, and the past

performance of a security, industry, sector, market, or financial product does not guarantee future results or returns.

Jaypee refers to all of Jaypees worldwide branches and subsidiaries. Only Jaypee International Inc. is a member of

FINRA, SIPC and NFA. Jaypee International Inc. is a US Broker-Dealer. Only Jaypee Capital Services Limited is a member of

SEBI - the regulatory body in India. Indian services are offered through Jaypee Capital Services Limited. Not all servicesare available from all Jaypee organizations or personnel. Kindly consult your local office for details.

Recommendation Structure:

A Buyrecommendation implies an upside of 10% or more from the current levels.

A Sellrecommendation implies a downside of 10% or more from the current levels.

A Neutralrecommendation implies an upside/downside of less than 10% from the current levels.


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Jaypee Offices Worldwide:

New York

150 Broadway

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New York, NY 10038

+1 212 537 6271

[email protected]

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