INVESTMENT IDEA

Va Tech Wabag Sep 18, 2017

Industry CMP Recommendation Add on dips to Target Time Horizon

Utilities / Infrastructure Rs. 636 Buy at CMP and add on Dips Rs. 585-636 Rs. 780 3 - 4 Quarters

Company Background

Va Tech Wabag is a multinational player in the water treatment industry with presence in India. WABAG's key
competences lie in the planning, completion and operation of drinking water and wastewater plants for both the
HDFC Scrip Code VATECH municipal and industrial sectors. It has 90 years of plant building experience. It divides its business into four
strategic business units namely Municipal Business Group, Industrial Water Business Group, Operations Business
BSE Code 533269
Group and Desalination Business Group.
NSE Code WABAG
It has presence in over 20 countries and offers a comprehensive range of technological solutions. The Group is
Bloomberg VATW headquartered in Chennai and has an envious record of completing more than 2,300 projects over the last 30
CMP as on 15 Sep17 636 years. It offers complete life cycle solutions including design, engineering, procurement, supply, installation,
construction and O&M (operational and maintenance) services. The company provides range of EPC and O&M
Equity Capital (Rs cr) 10.9
solutions for sewage treatment, processed & drinking water treatment, effluents treatment, sludge treatment,
Face Value (Rs) 2 desalination and reuse for institutional clients like municipal corporations and companies in the infrastructure
Equity O/S (cr) 54.6 sector such as power, steel and oil & gas companies. It is a technologyfocused player with R&D centers in Chennai,
India, Vienna in Austria and Winterthur in Switzerland respectively.
Market Cap (Rs Cr) 3471
Book Value (Rs) 182 Investment Rationale
Avg. 52 Week Vol 182133 Wabag has posted 13% revenue and 18% EBITDA cagr over FY14-17, while PAT has seen 12% cagr over the same
52 Week High (Rs) 749
period. Order book stood at Rs 8278cr as on Jun 2017, including framework contracts of Rs 866cr. Order book
consists of 72% of municipal contracts while the remaining is industrial one. While, domestic market contributes
52 Week Low (Rs) 450 ~58% of order book. The expertise developed in the water management industry enabled the company to fetch
high valued projects that ultimately adds value to the company.
Shareholding Pattern (%)
India, with low per capita water supply of 146 lts/day vs. in developed nations' 500 lts/day, leaves huge potential.
Promoters 24.7
Also, with rising stringent norms for waste-water treatment, the scope for Wabag is enormous, especially given
Institutions 55.1 that less than 30% of industrial waste-water is not treated before release.
Non Institutions 20.2
The company has made significant inroads in China, Saudi Arabia, Egypt, Spain and Turkey- key emerging
PCG Risk markets- clocking high growth in water and waste-water treatment. It is an attractive proposition due to
Yellow
Rating* continuous flow of new orders, excellent project execution track record, marquee client reference list, asset-light
* Refer Rating explanation
business model, strong balance sheet and limited options available in water space. Multiple domestic opportunities
through the Ganga Rejuvenation plan (~Rs 510 bn), Swachh Bharat Mission (Sewage and Solid waste management
Kushal Rughani ~Rs 500 bn) and creation of 100 smart cities (~Rs 480 bn) are key catalysts.
kushal.rughani@hdfcsec.com

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Key Highlights
Operates in 23 countries with legacy of
more than 90 years. The Debt/Equity ratio
remains under control at ~0.3x when
compared to other Water/Infrastructure
companies. Strong order book position
provides ~2x revenues visibility
company has guided ~Rs 4000cr order
inflow for FY18.
Domestic business contributes around
57% of total revenue, while activity wise,
EPC projects generates ~80% of the
revenues.
As on Jun 2017, order book stood at Rs
8278cr which includes framework orders
worth Rs 866cr.
Company is well poised to clinch business
deals from three major Government
schemes (i) Ganga Rejuvenation Plan; (ii)
Swachh Bharat Mission and (iii) 100
Smart Cities in the coming years.
In the coming years, we expect Orders
Inflow and working capital to ease which
would recede aiding rerating. Robust
Order Inflow and superior operating
performance would drive growth for the
company.
INVESTMENT IDEA
Va Tech Wabag Sep 18, 2017
Unmatched capability in water and wastewater projects
Wabag has the strongest portfolio of water treatment/waste water/desalination, etc., in India and unlike
most EPC peers has inhouse technology, which we believe is the key. Its strong technological
competence coupled with large talent pool impart it the resources to successfully execute complex water
projects. India, emerging markets hold humungous growth potential: India, with low per capita water
supply vs. developed nations provides huge potential opportunities. Also, with rising stringent norms for
wastewater treatment, the scope for Wabag is enormous, especially given that less than 30% of
industrial wastewater is not treated before release.
and The company has made significant inroads in China, Saudi Arabia, Egypt, Spain and Turkey key emerging
markets clocking high growth in water and wastewater treatment. Wabag has an assetlight business
model, which imparts it the capability to take on larger volume of projects and generate higher Return
Ratios. The company has identified critical areas which are mostly retained inhouse, while noncritical,
lowvalue add work is outsourced.
Active Player of Lucrative Water Management Space
Company had achieved order intake of Rs 703cr and its backlog stood at Rs 7409cr while including
framework contracts stood at Rs 8278cr. There are huge opportunities coming up in the markets such as
Middle East and South East Asia which have huge potential, with large projects coming up in the near
term. Despite its huge potential, the LATAM market is yet to pick up.
On the domestic front, India is expected to be the single largest market with massive opportunities likely
to come up from the Namami Gange and Wabag being a leading player in Indias water segment, most
likely to play an important role in water dynamics of the country. Though the scheme has been long
delayed, with the change of regime in the recently concluded elections in Uttar Pradesh, things are
expected to kick start soon.
The company is progressing well in the key projects being executed in the various geographies globally.
The progress of the major projects including Petronas RAPID Effluent Treatment Plant (ETP) in Malaysia,
AMAS Sewage Treatment Plant (STP) in Bahrain, Dangote projects in Nigeria, APGENCO projects in
Telangana & Andhra Pradesh in India and Polghawella Water Treatment Plant (WTP) in Sri Lanka are
being monitored closely.
In Mar 2017, Supreme Court ordered that all industrial units should have effluent treatment plant. Thus,
outlook for companies such as VA Tech Wabag, Ion Exchange, Voltas and Triveni Engineering got brighter.
The order, once implemented, is expected to boost earnings of all these companies though it would also
depend on the pace of implementing the directive. This directive action augurs well for the sector and
players like Wabag.
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Va Tech Wabag Sep 18, 2017

Wabag derives ~35% of its full year revenue in the fourth Quarter, though this has reduced over the past few years (47-48% earlier).

Va Tech Wabags has underperformed its peers on the back of deterioration in working capital and decline in orders inflow and order
intake. However, in the coming years, we expect both these headwinds to recede aiding rerating. Robust Order Inflow and superior
operating performance would drive growth for the company.

View & Valuation:

Water is a scarce natural resource. India is rapidly urbanizing and urban lifestyle demands substantially more use of water every day.
Society and environmentalists are increasingly demanding treatment of industrial effluents and solid waste. All these factors present large
business opportunities for companies like Va Tech Wabag. Consistent focus on faster project execution, bagging newer project and
concentration on international markets has enabled company to grow even in challenging times. We believe, various government schemes
offer an excellent opportunity for company to grow.

Va Tech Wabag is an Indian based MNCs operating in 23 countries with legacy of more than 90 years. The Debt/Equity ratio remains under
control at ~0.3x when compared to other Water/Infrastructure companies. Strong order book position provides ~2x revenues visibility
and company has guided ~Rs 4000cr order inflow for FY18. Consistent focus on faster project execution, bagging newer project and
concentration on international markets has enabled company to grow even in challenging times. We believe, various government schemes
offer an excellent opportunity for company to grow.

With ~2.3x Order book to revenue, Wabag offers strong revenue visibility. We expect revenues to grow at 17% CAGR over FY1719E
driven by faster execution. EBITDA margin expansion of 50bps over the next two years should lead to EBITDA CAGR of 19%. We expect
earnings to witness 41% CAGR FY1719E led by better operating performance and improvement in overseas operations.

At CMP of Rs 636, the stock is trading at 16x of its FY19E EPS and ~8x EV/EBITDA; We recommend investors to buy the stock between
Rs 585-636 with target of Rs. 780 over the next 4 quarters. We have valued the stock based upon ~20x FY19E earnings and 9.5x
EV/EBITDA.

Key Risks

Execution risk: The company outsources construction and depends on the sub-contractors for timely completion of projects. Any delays
by the latter could negatively impact Wabags margin.

Delay in Receivables: Over the last two years, companys receivables have been increasing. As on Mar 2017, It stood at Rs 2500cr,
+22% yoy. Thus, this has led to higher Working Capital Cycle for the company. Any further worsening in the same would remain key risk.

Delays in revival of international operations: It is reducing costs in its international operations by cutting workforce in highcost
locations and is instead focusing on domestic units. Any delays in revival of international business could impact margin improvement.

Lower than expected fund allocation from various schemes of Government can be a concern for municipal contracts.

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Va Tech Wabag Sep 18, 2017

BUSINESS BACKGROUND:

WABAG is India based multinational company and world leader in the water treatment area. WABAG's key competences, which are based
on over 90 years of plant building experience, lie in the planning, completion and operation of drinking water and wastewater plants for
both the municipal and industrial sectors. The company offers complete life cycle solutions including, conceptualization, and design,
engineering, supply, procurement, installation, construction and O&M services.

It divides its business into four strategic business units namely Municipal Business Group, Industrial Water Business Group, Operations
Business Group and Desalination Business Group. The WABAG Group has a workforce of around 2000 and is represented via companies
and offices in more than 22 countries. The Groups focus is on emerging markets viz. Asia, North Africa, Middle East, the Central and
Eastern Europe states.

Order Book Summary

Orders in hand Framework Order Book

Order (Jun17)
Rs 74108 mn Rs 8659 mn Rs 82777 mn

EPC O&M
81% 19%

Municipal Industrial Municipal Industrial

64.3% 35.7% 89% 11%

EPC: Engineering, Procurement & Construction

O&M: Operation & Maintenance

Source: Company, HDFC sec Research

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Va Tech Wabag Sep 18, 2017

Key Highlights

VA Tech has guided for FY18 revenues at Rs 38-40 bn (+~25%) and order inflow at Rs 43-45 bn (up 20-25%).

Management commented that executions on all projects are happening at a good pace and they look forward to another good year
in terms of overall growth. Management highlighted pick up in domestic ordering activity and opportunities in Saudi Arabia, Sri
Lanka, Philippines and Vietnam.

Q1 FY18 order inflow remained strong at ~Rs 7bn was down ~13% YoY (vs. Rs 8bn YoY). Order backlog at Rs 74bn was down 1%
YoY (India up 23%, International subsidiaries down 35%). Wabag booked one large repeat order from Bangalore Water Supply and
Sewerage Board (BWSSB) for 150 MLD Sewage Treatment Plant (STP) worth Rs 3.86bn.

Strong order pipeline: Management talked about strong order pipeline for the company both in the domestic as well as international
market, driven by expansion and greenfield projects in oil & gas industry. Domestic order pipeline highlighted: (a) desalination
plants in Chennai (Rs 20 bn), (b) 7 sewage treatment plants in Mumbai worth ~Rs 45bn, and (c) Namami Gange projects opportunity
worth Rs 200bn over the next 2-3 years.

Wabag has gross debt on books of Rs 4.5bn while net debt of Rs 1.5bn. The increase in debt was primarily because of fall in creditor
days as Wabag progresses on bigticket projects and makes payments to vendors. The company has seen improvement in
receivables and APGENCO receivables have reduced.

The next leg of order intake growth is expected from MEA and African countries where Wabag anticipates average ticket size of
~USD 100mn. India is also expected to be robust.

Industrial projects are better margin contracts than the municipal business. Outstanding order book in APGENCO was at Rs 3.4bn
(new orders received in Q1 worth Rs 1.4bn on account of expansion in scope).

Average execution order book for EPC period is ~24 months. O&M orders are on an average of 5 years.

Wabag does not expect any significant growth form the Europe cluster for the next few years. However, the company believes the
next leg of order intake growth is going to come from MEA and African countries where the company sees average ticket size of
USD 100mn. This should also aid margin expansion as these clusters are more profitable than the European clusters. Also, payment
terms are better. Revenue mix for the next 23 years is expected to be at 80:20 EPC and O&M.

In May 2017, Wabag had won repeat order of US$ 105mn from Dangote Group. The order id from Dangote Oil Refining company
in Nigeria. This was the second order for Wabag. Dangote is the largest industrial conglomerate in West Africa.

In Jul 2017, company had won an order of Rs 386cr from Bengaluru Water Supply and Sewage Board (BWSSB). Wabag will design
and build the plant and also post construction they will operate and maintain the plant for next 10 years.

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Va Tech Wabag Sep 18, 2017

Revenue Recognized for FY17

Project Details Revenue recognized [Rs cr]

APGENCO BOP with Water management 419
Petronas RAPID, Malaysia ETP 409
AMAS Bahrain 40 MLD STP 273
RIL Projects 189
Dangote Nigeria 129
Istanbul, Turkey O&M 124
UP Jal Nigam 97
OWSSB, Orissa 77
Barmer, Rajasthan 357
Polgahawela, Sri Lanka 63
Source: Company, HDFC sec Research

Order Book Break up

Key Contracts in Order book (Rs cr)

Petronas RAPID ETP, Malaysia 823
Dangote, Nigeria ETP & RWTP 694
Polgahawela Sri Lanka 671
Koyambedu, Chennai 574
Desal & STP Order, Saudi Arabia 520
Barmer, Rajasthan 247
AMAS, Bahrain 40 MLD STP 235
Pertamina, Indonesia 207
APGENCO BOP with Water Management 204
Libya STP* 611
Tobruk Desal Libya* 118
Alsaad Saudi* 136
Source: Company, HDFC sec Research, *Framework Contract

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Va Tech Wabag Sep 18, 2017

Share of domestic orders to increase

Over FY1719E we expect domestic orders to be the driver of growth in order inflows. Share of domestic orders or offshore portion of
international orders is expected to increase. Domestic orders have relatively higher EBITDA margins compared to international orders. In
the next two years, Namami Gange, Orissa, Mumbai, Madhya Pradesh, Chennai and Bengaluru will drive orders.

Regional market strategies

India: Target huge upcoming opportunities from the Namami Gange, Smart Cities and Swachh Bharat Mission. Enhance focus on industrial
projects. Speedily execute existing legacy projects and reduce focus on such projects that have been laggards to balance sheet.

Philippines: Target large-scale drinking water and wastewater treatment projects. Leverage local competencies with enhanced focus on
Industrial sector.

Malaysia & Indonesia: Enhance focus on industrial projects owing to dearth of municipal projects

Vietnam: Reduce costs and re-strategise to act more as a local player to compete in the highly competitive market having large number
of medium-sized players

Opportunities in Middle East: Large number of desalination plants and reuse plants are being planned in the region. Fall in oil prices is
driving companies to look east to award projects.

Industry Overview

Water, one of the most scare natural resource across the world; warrants for an immediate and efficacious solution. The world's water
reserves consist of around 3% of fresh water reserves and around 97% of saline water. Of these reserves, just 10 % can be exploited
economically. It is estimated that ~1.1 billion people lack access to clean drinking water and there is a water shortage in already 30
countries. With a static supply of water, there is a growing demand for water all over the world. By 2050, global water demand is projected
to increase by 55%, mainly due to growing demands from manufacturing, thermal electricity generation and domestic use.

Globally water usage opportunities are expected to increase with the maximum growth occurring in emerging economies. Domestically
also, the water demand is expected to increase to 1,500 Billion cubic metres in 2030, while the current supply of water is 740 Billion cubic
metres, which would result in a large gap between current supply and projected demand amounting to 50% of demand shortfall. The
company is an active participant of this market (with presence in 8 countries out of top 10 water markets), offering a complete range of
water solutions in form of drinking/sewage/industrial water treatment, Industrial Waste water treatment, desalination and recycling.

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Va Tech Wabag Sep 18, 2017

Uneven Water Distribution

Despite ample water reserves, the water distribution remains unequal. Regional imbalances in the per capita availability of water, with
over 60% of accessible fresh water supply in only 10 countries result in a water-scarce situation for emerging countries, such as China
and India, which comprise 40% of the global population, but have only 9% of total fresh water reserves. India has nearly 16% of the
worlds population, but only 3% of the worlds water reserves. Thus, India and China face more water stress creating a sense of urgency
for water waste management and solutions in coming years.

In India, as against the requirement of 140 litres per capita per day, urban India receives only 105 litres of water, while rural India fares
even worse. One in four rural families across India draws water from untreated taps and uncovered wells. Poor access to clean drinking
water and sanitation contribute to major health concerns, particularly in rural India.

Moreover, increasing urbanisation is aggravating Indias difficulties. Indias urban population is expected to reach close to 600 Million by
2031, twice as much as in 2011. The number of metropolitan cities with a population of 1 Million and above has increased from 35 in 2001
to 50 in 2011 and is likely to increase further to 87 by 2031. Clearly, this requires higher capacity of water treatment solutions.

Expecting a boost from Indian Government's Initiatives

The Municipal Business Group (MBG) continues to be at the forefront, both in terms of order book and sales turnover. The companys order
book consists of around 52% of domestic contracts, while 62% of overall book is formed of municipal contracts. In terms of revenues,
more than 25% of revenue is derived from domestic government contracts.

As for the Indian municipal market, company is well poised to clinch business deals from three major Government schemes (i) Ganga
Rejuvenation Plan; (ii) Swachh Bharat Mission and (iii) 100 Smart Cities in the coming years. MBG also envisages good business
opportunities for sewage treatment plants and water treatment plants in the form of funded jobs overseas.

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Va Tech Wabag Sep 18, 2017

Source: Company, HDFC sec Research

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Revenues to grow at 18%

EBITDA and PAT Trend
Revenue (Rs mn)
50000 5000
4500 EBITDA PAT
40000
4000
30000 3500
3000
20000 2500
2000
10000
1500
0 1000
FY14 FY15 FY16 FY17 FY18E FY19E 500
0
Source: Company, HDFC sec Research
FY14 FY15 FY16 FY17 FY18E FY19E

Source: Company, HDFC sec Research

EV/EBITDA TREND

20.0
18.0
17.2
16.0
15.1
14.0
12.0 11.7
10.0 9.7
8.0 7.9
6.0
4.0
2.0
0.0
FY15 FY16 FY17 FY18E FY19E

Source: Company, HDFC sec Research

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Order Book Composition as on Jun 2017 (%)

27 31

69
73

India Overseas Municipal Industrial

Source: Company, HDFC sec Research

Source: Company, HDFC sec Research

19

81

EPC O&M

Source: Company, HDFC sec Research

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Va Tech Wabag Sep 18, 2017

Income Statement (Consolidated)

Balance Sheet
(Rs Mn) FY15 FY16 FY17 FY18E FY19E
(Rs Mn) FY15 FY16 FY17 FY18E FY19E
Net Revenue 24352 25168 32193 37720 44850
SOURCE OF FUNDS
Growth (%) 8.8 3.4 27.9 17.2 18.9 Share Capital 109 109 109 109 109
Operating Expenses 22257 22789 29114 34016 40322 Reserves 8918 9092 9820 11200 13050
EBITDA 2095 2379 3079 3704 4528 Shareholders' Funds 9026 9201 9929 11310 13159
Growth (%) 11.1 13.6 29.4 20.3 22.3 Minority Interest 50 82 173 173 173
EBITDA Margin (%) 8.6 9.5 9.6 9.8 10.1 Long Term Debt 693 502 632 1117 1690
Depreciation 109 205 192 221 273 Net Deferred Taxes -199 -576 -753 -753 -753
EBIT 1986 2174 2887 3483 4255 Long Term Provisions & Others 2393 711 620 1022 1708
Minority Int + Excep 78 80 -575 -282 -228 Total Source of Funds 11963 10580 11302 12509 15977
Interest 392 471 527 590 654 APPLICATION OF FUNDS
PBT 1671 1713 1785 2610 3373 Net Block 1919 1090 1059 1174 1367
Tax 566 673 665 841 1079 Investment 27 355 20 20 20
RPAT 1101 905 1120 1708 2229 Long Term Loans & Advances 2362 2544 3280 3835 4434
Growth (%) -2.9 -17.8 23.8 52.5 30.5 Total Non Current Assets 4309 3988 4358 5028 5820
EPS 20.3 16.6 20.5 31.3 40.9 Inventories 470 977 385 672 762
Source: Company, HDFC sec Research
Trade Receivables 14807 16552 21222 23541 27402
Cash & Equivalents 3112 3633 2623 1989 3121
Other Current Assets 2752 2663 2917 3116 3331
Total Current Assets 21140 23825 27147 29318 34615
Trade Payables 8653 10737 13056 13839 15530
Other Current Liab & Provisions 4832 6525 7142 7928 9988
Total Current Liabilities 13486 17262 20198 21767 25518
Net Current Assets 7655 6573 6949 7550 9097
Total Application of Funds 11963 10580 11302 12509 15977
Source: Company, HDFC sec Research

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Key Ratios
Cash Flow Statement
Key Ratios (%) FY15 FY16E FY17E FY18E FY19E
(Rs Mln) FY15 FY16 FY17 FY18E FY19E
PROFITABILITY (%)
Reported PBT 1,671 1,713 1,785 2,610 3,373
EBITDA Margin 8.6 9.5 9.6 9.8 10.1
Interest Expenses 148 157 187 223 257
APAT Margin 4.5 3.6 3.5 4.5 5.0
Depreciation 109 205 192 221 273
RoE 12.6 9.9 11.7 16.1 18.2
Working Capital Change -1,664 1,695 -1,523 -1,745 -438
RoIC 25.5 26.4 32.6 32.5 34.1
Tax Paid -566 -673 -665 -841 -1,079
RoCE 17.3 18.4 23.8 26.4 28.0
OPERATING CASH FLOW ( a ) -170 3,017 -24 470 2,409
EFFICIENCY
Capex -769 -550 -800 -900 -1,300
Inventory (days) 6 10 8 7 6
Free Cash Flow -939 2,467 -824 -430 1,109
Debtors (days) 215 227 220 228 222
Investments -376 -509 -401 -555 -599
Payables (days) 167 188 175 172 168
INVESTING CASH FLOW ( b ) -1,067 -979 -1,201 -1,455 -1,899
Working Capital Cycle (days) 54 50 53 63 60
Debt Issuance / (Repaid) 848 -1,872 39 887 1,259
Debt/EBITDA (x) 0.8 0.8 0.8 0.8 0.7
Interest Expenses -148 -157 -187 -223 -257
D/E (x) 0.2 0.2 0.3 0.3 0.3
FCFE -238 437 -972 234 2,111
Interest Coverage (x) 5.3 5.1 5.8 6.3 6.9
Share Capital Issuance 208 0 39 14 0
PER SHARE DATA (Rs)
Dividend -262 -262 -262 -327 -380
EPS 20.3 16.6 20.5 31.3 40.9
FINANCING CASH FLOW ( c ) 647 -2,291 -371 351 622
CEPS 22.3 20.4 24.1 35.4 45.9
NET CASH FLOW (a+b+c) -590 -253 -1,596 -634 1,132
Dividend 4.0 4.0 4.0 5.0 5.8
Source: Company, HDFC sec Research
Book Value 166 169 182 207 241
VALUATION
P/E (x) 31.5 38.4 31.1 20.4 15.6
P/BV (x) 3.8 3.8 3.5 3.1 2.6
EV/EBITDA (x) 17.2 15.1 11.7 9.7 7.9
EV/Revenue (x) 1.5 1.4 1.1 1.0 0.8
Dividend Yield (%) 0.6 0.6 0.6 0.8 0.9
Source: Company, HDFC sec Research

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Rating Chart

R HIGH
E
T
U MEDIUM
R
N LOW
LOW MEDIUM HIGH
RISK

Ratings Explanation:

RATING Risk - Return BEAR CASE BASE CASE BULL CASE

IF RISKS MANIFEST
IF INVESTMENT
PRICE CAN FALL 15%
IF RISKS MANIFEST RATIONALE
LOW RISK - LOW & IF INVESTMENT
BLUE PRICE CAN FALL FRUCTFIES PRICE
RETURN STOCKS RATIONALE
20% OR MORE CAN RISE BY 20% OR
FRUCTFIES PRICE
MORE
CAN RISE BY 15%
IF RISKS MANIFEST
IF INVESTMENT
PRICE CAN FALL 20%
MEDIUM RISK - IF RISKS MANIFEST RATIONALE
& IF INVESTMENT
YELLOW HIGH RETURN PRICE CAN FALL FRUCTFIES PRICE
RATIONALE
STOCKS 35% OR MORE CAN RISE BY 35% OR
FRUCTFIES PRICE
MORE
CAN RISE BY 30%
IF RISKS MANIFEST
IF INVESTMENT
PRICE CAN FALL 30%
IF RISKS MANIFEST RATIONALE
HIGH RISK - HIGH & IF INVESTMENT
RED PRICE CAN FALL FRUCTFIES PRICE
RETURN STOCKS RATIONALE
50% OR MORE CAN RISE BY 50%
FRUCTFIES PRICE
OR MORE
CAN RISE BY 30%

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Recommendation History
Date Price Reco Target
Price History 29-Mar-16 532 BUY 650
800 18-Sep-17 636 BUY 780

700

600

500

400

300

May-17
Sep-16

Oct-16

Feb-17

Jul-17

Sep-17
Apr-17
Nov-16

Aug-17
Dec-16

Mar-17
Jan-17

Jun-17
Rating Definition:

Buy: Stock is expected to gain by 10% or more in the next 1 Year.

Sell: Stock is expected to decline by 10% or more in the next 1 Year.

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Disclosure:
I, Kushal Rughani, MBA, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. HSL has
no material adverse disciplinary history as on the date of publication of this report. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or
view(s) in this report.
Research Analyst or HDFC Securities Ltd. Does not have financial interest in the subject company. Also Research Analyst or his relative or HDFC Securities Ltd. or its Associate may have beneficial ownership of 1% or more
in the subject company at the end of the month immediately preceding the date of publication of the Research Report. Further Research Analyst or HDFC Securities Ltd. or its associate does not have material conflict of
interest.
Any holding in stock No
HDFC Securities Limited (HSL) is a SEBI Registered Research Analyst having registration no. INH000002475.

Disclaimer:
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