Technology

India I Equities Company Update

Change in Estimates Target Reco

4 August 2020

KPIT Technologies Rating: Buy

Target Price: `90
Performance converging to peers, large deal ramp-up in H2; Buy Share Price: `68

KPIT revenues came at $65m, down 15.2%q/q (14% in CC), 10%y/y. Key data KPITTECH IN / KPIE.BO
The decline was mainly in AD-ADAS (down 27.7% q/q) and 52-week high / low `113 / 34

Diagnostics/Auto SAR (down 22% q/q). The EBIT margin was 6.7%, Sensex / Nifty 37662 / 11086
3-m average volume $0.5m
down 178bps q/q. Despite Q1FY21 capex being higher, at `332m (new
Market cap `19bn / $247.3m
facility and software), net cash was a high `3,938m, 21% of MCap.
Shares outstanding 274m
Capex for the rest of the year would come down sharply. With its in-line
Q1 performance and growth expected to be back in H2 as large deals
Shareholding pattern (%) Jun'20 Mar'20 Dec'19
ramp up and offshoring increases, margins may see a tailwind. We Promoters 41.8 41.7 41.6
raise our FY22e profit 5.2%, leading to a higher target of `90 (earlier - of which, Pledged 17.0 17.1 18.7
`85) at 13x FY22e EPS. Free float 58.2 58.4 58.4
- Foreign institutions 23.1 23.3 23.3
Revenue to stabilise in Q2. KPIT’s Q1 FY21 performance was better than
- Domestic institutions 12.5 12.6 11.8
LTTS’ (down 12.5%q/q, 12%y/y) and Tata Elxsi’s (down 11%q/q, up
- Public 22.6 22.4 23.3
2%y/y). Besides, it secured another large deal of over $60m through Tier-1
(Europe) after a $50m deal signed in Q4. Realisations dropped 10% q/q
largely on account of higher offshoring. Europe (39% of revenue, down Estimates revision (%) FY21e FY22e
19.3% q/q) was weak but expected to grow as the large deals ramp up from Sales($) (3.6) (2.6)
Q3. Two large deals in the last two quarters establish its competitiveness. EBITDA 8.7 6.0
PAT (1.0) 5.2
Offshoring, lower D&A to act as margin tailwinds. The EBITDA margin
was 13.4%, down 37bps q/q, 116bps y/y. LTTS (16%, down 309bps q/q) and
TataElxsi (23%, down 160bps q/q) also faced margin headwinds in Q1 FY21. Relative price performance
110
D&A was higher at `330m (up 12% q/q) on account of a new facility in
Germany but is expected to come down from Q3 as two facilities consolidate. 90
Sensex
Net profit was `240m, lower partly due to forex losses and partly to EBIT.
`
DSO was 72 (up six days q/q) as trade discounts were given to a few clients. 70

Money in operating accounts has reduced to 49% (81% in Q1 FY20), leading 50

to anticipation of higher other income. KPITTECH
30
Maintaining a Buy, at a higher TP of `90 (13x FY22e). The stock trades at
Aug-19
Sep-19

Nov-19
Dec-19
Jul-19

Jul-20
Feb-20
Mar-20
Oct-19

Jan-20

Apr-20
May-20
Jun-20

10.2x FY22e EPS and 11% FCF yield, attractive given the anticipated H2
FY21 recovery and better margin delivery. Risk: Dependence on one vertical. Source: Bloomberg

Key financials (YE Mar) FY18 FY19 FY20 FY21e FY22e

Sales (` m) 36,656 36,553 21,562 20,711 23,060
Net profit (` m) 2,529 2,536 1,483 1,349 1,811
EPS (`) 12.7 9.4 5.5 4.9 6.6
PE (x) 7.4 7.4 12.2 13.8 10.3
EV / EBITDA (x) 3.5 2.8 4.7 4.9 4.2
Mohit Jain
PBV (x) 1.0 1.9 1.8 1.6 1.5 Research Analyst
RoE (%) 14.9 18.3 15.2 12.4 15.2
RoCE (%) 11.9 18.5 13.3 9.9 11.4
Dividend yield (%) 3.5 3.6 1.5 2.5 3.9 Princy Bhansali
Net debt / equity (x) -0.2 -0.1 -0.4 -0.5 -0.5 Research Associate
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

4 August 2020 KPIT Technologies – Performance converging to peers, large deal ramp-up in H2; Buy

Quick Glance – Financials and Valuations

Fig 1 – Income statement (`m) Fig 2 – Balance sheet (` m)
Year-end: Mar FY18 FY19 FY20 FY21e FY22e Year-end: Mar FY18 FY19 FY20 FY21e FY22e
Revenues ($ m) 567.6 523.1 303.8 272.9 303.4 Share capital 379 2,685 2,689 2,689 2,689
Growth (%) 15 -8 -42 -10 11 Net worth 18,169 9,596 10,470 11,347 12,433
Net revenues 36,656 36,553 21,562 20,711 23,060 Debt 2,771 1,289 196 - -
Employee & direct costs 27,665 26,353 16,353 15,647 17,290 Minority interest 36 39 36 44 52
Gross profit 8,991 10,200 5,209 5,064 5,770 DTL/(Assets) -944 1 -387 -387 -387
Gross margins % 24.5 27.9 24.2 24.5 25.0 Capital employed 20,032 10,924 10,314 11,003 12,098
SG&A 5,037 5,186 2,238 2,183 2,415 Net tangible assets 3,096 3,261 4,277 3,669 2,952
EBITDA 3,954 5,014 2,971 2,881 3,355 Net intangible assets 1,171 - - - -
EBITDA margins (%) 10.8 13.7 13.8 13.9 14.6 Goodwill 4,275 942 988 1,431 1,867
- Depreciation 843 1,113 1,080 1,267 1,221 CWIP (tang. &intang.) 68 - 52 52 52
Other income 307 -237 131 234 295 Investments (strategic)
Interest expenses 104 210 198 174 133 Investments (financial) 1,185 - 93 93 93
PBT 3,314 3,455 1,823 1,675 2,297 Current assets (ex cash) 11,541 10,332 6,744 7,080 7,666
Effective tax rate (%) 21 23 19 19 21 Cash 5,049 2,207 3,810 5,428 6,457
+ Associates / (Minorities) -87 -132 -2 -8 -8 Current liabilities 6,353 5,818 5,650 6,749 6,988
Net income 2,529 2,536 1,483 1,349 1,811 Working capital 5,188 4,515 1,095 331 678
WANS 200 270 270 274 274 Capital deployed 20,032 10,924 10,314 11,003 12,098
FDEPS (` / sh) 12.7 9.4 5.5 4.9 6.6 Contingent liabilities 311 - - - -

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

Year-end: Mar FY18 FY19 FY20 FY21e FY22e Year-end: Mar FY18 FY19 FY20 FY21e FY22e
PBT 3,314 3,455 1,823 1,675 2,297 P/E (x) 7.4 7.4 12.2 13.8 10.3
+ Non-cash items 1,474 313 1,590 1,267 1,221 EV / EBITDA (x) 3.5 2.8 4.7 4.9 4.2
Oper. prof. before WC 4,788 3,768 3,413 2,941 3,518 EV / Sales (x) 0.4 0.5 0.7 0.6 0.5
- Incr./(decr.) in WC 128 -1,332 -1,300 302 578 P/B (x) 1.0 1.9 1.8 1.6 1.5
Others incl. taxes -586 -510 -825 688 -408 RoE (%) 14.9 18.3 15.2 12.4 15.2
Operating cash-flow 4,074 4,590 3,887 3,327 2,531 RoCE (%) - after tax 11.9 18.5 13.3 9.9 11.4
- Capex (tang. + intang.) 1,159 1,622 686 659 503 RoIC (%) - after tax 16.2 24.9 18.0 15.4 19.3
Free cash-flow 2,915 2,968 3,201 2,668 2,028 DPS (` / sh) 2.4 2.4 1.0 1.7 2.6
Acquisitions -48 - -233 -443 -436 Dividend yield (%) 3.5 3.6 1.5 2.5 3.9
- Div.(incl. buyback & taxes) 503 761 569 472 724 Dividend payout (%) - incl. DDT 22.1 30.0 21.2 40.8 46.6
+ Equity raised 5 - -0 - - Net debt / equity (x) -0.2 -0.1 -0.4 -0.5 -0.5
+ Debt raised -796 -1,482 -822 -196 - Receivables (days) 92 128 86 89 88
- Fin investments 382 -1,185 511 - - Inventory (days) - - - - -
- Misc. (CFI + CFF) 44 4,753 317 -60 -162 Payables (days) 18 25 17 17 15
Net cash-flow 1,147 -2,843 750 1,617 1,030 CFO : PAT % 155.7 172.1 261.8 245.1 139.1
Source: Company, AnandRathi Research Source: Company, AnandRathi Research

Fig 5 – Price movement Fig 6 – EBITDA margins

(`) 16%
120
15.2%
15%
100 14.6%

80 14% 13.8%
13.4% 13.4% 13.4%
60 13.0% 13.1%
13%

40
12%
20

0 11%
2QFY19

3QFY19

4QFY19

1QFY20

2QFY20

3QFY20

4QFY20

1QFY21
Jul-19

Feb-20

Jul-20
Apr-19

Apr-20
Oct-19
Nov-19
Dec-19
May-19
Jun-19

Aug-19
Sep-19

Jan-20

May-20
Jun-20
Mar-20

Source: Bloomberg Source: Company

Note - Q1, Q2, Q3FY19 figures are KPIT Engineering financials(before the split); Q4FY19’s are KPIT Tech’s financials after the hiving off from Birlasoft IT

Anand Rathi Research 2

4 August 2020 KPIT Technologies – Performance converging to peers, large deal ramp-up in H2; Buy

Result Highlights
Q1FY21 Results at a Glance

Fig 7 – Quarterly performance

Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q/Q growth, % Y/Y growth, %

Revenues ($ m) 73 77 77 77 65 -15.2% -10.3%

Growth Y/Y % 16% 15% 9% 8% -10%
Revenues (`m) 5,058 5,441 5,501 5,562 4,927 -11.4% -2.6%
Eff. exchange rate 69.5 70.5 71.6 72.3 75.5 4.5% 8.6%
Employees (EoP) 6,891 7,295 7,303 7,125 6,806
Revenue productivity ($ ‘000 / employee) 11.0 11.2 10.5 10.5 9.2 -13.1% -16.7%

Gross utilisation (IT services) 72.9% 73.0% 73.0% 73.0% 70.0% -300 bps -294 bps

CoR (excl. D&A) (3,805) (4,140) (4,180) (4,228) (3,726) -11.9% -2.1%
As % of revenues -75% -76% -76% -76% -76% 38 bps -39 bps
SG&A (514) (574) (584) (566) (539) -4.9% 4.8%
As % of revenues -10% -11% -11% -10% -11% -75 bps -77 bps
EBITDA 739 727 737 768 662 -13.8% -10.3%
EBITDA margins % 14.6% 13.4% 13.4% 13.8% 13.4% -37 bps -116 bps
EBIT 500 462 454 474 332 -29.9% -33.6%
EBIT margins % 9.9% 8.5% 8.2% 8.5% 6.7% -178 bps -315 bps
Other income (57) 51 76 60 10 -83.5% -117.5%
Forex gain / loss (69) 29 58 2 (15) -961.6% -78.0%
Interest expense (46) (59) (48) (45) (49) 9.7% 7.6%
PBT 398 454 482 489 293 -40.1% -26.4%
PBT margins % 7.9% 8.3% 8.8% 8.8% 5.9% -32.4% -24.4%
Taxes (88) (86) (72) (92) (51) -44.6% -42.4%
ETR % -22% -19% -15% -19% -17% 140 bps 481 bps
Net income 376 330 429 388 240 -38.1% -36.1%
NP margins % 7.4% 6.1% 7.8% 7.0% 4.9% -211 bps -256 bps
Note: CoR includes G&A employee costs as well
Source: Company, Anand Rathi Research

Fig 8 – Quarterly results(` m)

Year-end: Mar Q1FY21 % Q/Q % Y/Y FY20 FY21 % Y/Y
Sales ($ m) 65 (15.2) (10.3) 304 273 (10.2)
Sales 4,927 (11.4) (2.6) 21,562 20,711 (3.9)
EBITDA 662 (13.8) (10.3) 2,971 2,881 (3.0)
EBITDA margins (%) 13.4 -37 bps -116 bps 13.8 13.9 13 bps
EBIT 332 (29.9) (33.6) 1,890 1,614 (14.6)
EBIT margins (%) 6.7 -178 bps -315 bps 8.8 7.8 -97 bps
PBT 293 (40.1) (26.4) 1,823 1,675 (8.1)
Tax (51) (44.6) (42.4) (338) (317) (6.3)
Tax rate (%) (17.3) 140 bps 481 bps (18.6) (18.9) -38 bps
PAT (`m) 240 (38.1) (36.1) 1,523 1,349 (11.4)
Source: Company

Anand Rathi Research 3

4 August 2020 KPIT Technologies – Performance converging to peers, large deal ramp-up in H2; Buy

Conference-call takeaways
 The demand environment has turned better in Q1 FY21 than in Q4
FY20 as there is more certainty now.
 Clients have cut their spending with KPIT the least of its peers; thus
KPIT has gained market share.
 Apart from the large deal announced in Q1, KPIT won three deals
with OEMs and a few more with tier-1 companies.There are few other
large deals in the pipeline. KPIT is winning from vendor consolidation
based on its capability.
 KPIT has won three deals in China in the past one month.
 Depreciation in Q1 includes `125m on account of a lease. In Q2,
depreciation would increase and start reducing from Q3.
 Increase in DSO days was on account of extended payment terms to
two clients which will normalise in Q4.
 There are 700 employees in Germany,after consolidation of all
facilities. Many deals will be executed from the German centre.
 E-power train, ADAS and connected, will be growth drivers ahead.
 Payment of `170m was made during Q1 for earn-out payment for
MicroFuzzy (now KPIT owns 95% in it). For acquisition of the rest
5% in Microfuzzy, another ~`265m to be paid.
 1,200 people work outside India.
 Attrition for the quarter was 11%
Outlook
 Q2 revenue to be flat sequentially, with flat margins.
 In Q3, higher utilisation and offshoring will help margins, offset by
restoration in salaries. Q3 will see revenue growth and margin
expansion.In Q4, lower D&A, higher offshoring and operating
efficiency will shore up revenues and margins; EBITDA and PAT will
be higher.
 Capex to be `480m for FY21.
 ETR to be 18% for FY21.
 Payout to remain close to 25%.

Notes from the Q4 FY20 concall

 The company wishes to expand beyond its T-25 strategic
customers,incl. new-generation companies (Microsoft and Amazon) as
it expects some shocks from a few of these strategic customers given
the stress in the auto value-chain.
 The large dealof fiveyears, of $50m, that was in the pipeline has been
signed. The benefit will start flowing in in H2FY21.This requires
minimal additional capex and will be serviced through a dedicated
software centre in Munich and Pune.
 To contain costs, the company decided to expand the percentage of
variable pay by 10-15%, and has consolidated three facilities in India
and two in Germany. The variable pay will be payable at the year-end
depending on the company’s performance.
 It is not feeling pressure on pricing but has extended credit periods for

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4 August 2020 KPIT Technologies – Performance converging to peers, large deal ramp-up in H2; Buy

some clients.
 Consequent on volumes declining, Q1revenue will decline10-15% q/q,
but H2 will be better than H1.
Notes from the Q3 FY20 concall
 The demand environment is positive, with opportunities across
regions and verticals.
 The company added four strategic customers in the target T-25
customer base.
 It has large deals (five-year, of double-digit million dollars) in the
pipeline, giving it confidence of growth ahead, driven by passenger
cars.
 The margins were lower on account of higher increments given this
year to retain talent.
 Germany has 800 people, of which 25% are based at the client site.
 The tax rate was lower because of the cumulative impact of
consolidation of income of the Germany entities. The tax rate will
continue to be low (below 20%).
 The company maintains its FY20 revenue growth guidance of 16-18%
and expects margins to trend up by another 200-300bps in coming
years based on levers such as offshoring and utilisation.
Notes from the Q2 FY20 concall
 Promoter pledges are at peak levels and expected to come down gradually
to zero in the next two years. The proceeds of the pledges have been used
entirely to increase the promoters’ stake in the company.
 Due to OEMs’ focus on electric vehicles, traditional power-train is
also growing as OEMs offload past works to vendors. On connected
vehicles, one large programme was completed last year; hence, figures
appear negative.
 Due to the high wage hikes, attrition has come down by ~10
percentage points, y/y.
 Management expects utilisation to pick up gradually. At present, net
hiring is on the fresher side as KPIT attempts to reduce its
dependence on lateral hires. This trend may continue for two quarters;
the results will then show up in margins.
 Capex to hold at 2% of revenues.
 The company maintains its FY20 revenue growth guidance of 16-18%
and EBITDA margin guidance and demand for its servicesat 14-15%.
Notes from the Q1 FY20 concall
 KPIT had the highest deal wins in the quarter as demand for its
services is strong.
 Attrition was higher in the past, at 18%, but is now shrinking every
quarter. This is also on account of the sharper focus and growth.
 Dividend payout will increase gradually but not in a huge way as the
company needs cash and has retained earnings to support growth.
 Management talked of 16-18% CC revenue growth for FY20.
 The EBITDA margin would be 14-15%, according to the old
accounting, and 15-16% per reported figures.

Anand Rathi Research 5

4 August 2020 KPIT Technologies – Performance converging to peers, large deal ramp-up in H2; Buy

Notes from the Q4 FY19 concall

 The major chunk of the company’s work lies in power-train
(conventional and electrical), connectivity, autonomous (vision and
control systems) and diagnostics. Diagnostics was soft in the quarter,
especially in Europe. The company saw great traction in this space
and, hence, is confident of growth returning.
 Growth in Europe was hit by the delayed execution of large deals.
These revenues are expected to come in Q1 FY20. This region
currently has 700 employees.
 The company is looking at $500m revenue in the next 4-5 years.
Management guided to 16-18% CC revenue growth for FY20.
 FY20 margin of 14-15%, backed by operational efficiencies.
 ETR likely at ~22-23%

Anand Rathi Research 6

4 August 2020 KPIT Technologies – Performance converging to peers, large deal ramp-up in H2; Buy

Factsheet
Fig 9 – Revenue-split, by industry
(%) Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21
Passenger cars 73 76 76 76 78
Commercial vehicles 24 22 23 22 21
New mobility 1 1 1 1 1
Others 2 1 1 1 1
Source: Company

Fig 10 – Revenue-split, by services

(%) Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21
Power-train 35 37 33 33 37
AD-ADAS 21 20 25 26 22
Connected vehicles 15 13 13 10 13
Others 29 30 30 31 29
Source: Company

Fig 11 – Revenue-split, by region

(%) Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21
North America 42 44 40 40 42
Europe 37 36 41 41 39
APAC / RoW 21 20 19 19 18
Source: Company

Fig 12 – Client profiles (LTM)

% Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21
Top-25 81.2 84.4 84.0 82.6 85.7
Growth, Q/Q 8.8% 10.3% -1.0% -1.5% NA
Growth, Y/Y 24% 13% 15% 17% NA
Active clients 60 55 55 58 55
Revenue per active client ($m / quarter) 1.2 1.4 1.4 1.3 1.2
Source: Company

Fig 13 – Employee movement

(%) Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21
Employee movement
Employees (EoP) 6,891 7,295 7,303 7,125 6,806
Net Addition 277 404 8 -178 -319
Utilization % (blended, est) 73 73 73 73 70
Source: Company

Fig 14 – Revenue-split, by delivery type and billing

(%) Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21
Billing type
T&M 49 54 46 49 48
FP 51 46 54 51 52
Source: Company

Anand Rathi Research 7

4 August 2020 KPIT Technologies – Performance converging to peers, large deal ramp-up in H2; Buy

Fig 15 – Key verticals and horizontals growth y/y

(%) Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21
Verticals growth
Passenger cars 15 13 9 11 -4
Commercial vehicles 22 33 26 3 (23)
New mobility (33) 90 44 (11) 15
Others 17 (60) (79) (15) (80)
Horizontals growth
Power-train 23 58 40 12 (5)
AD-ADAS 91 8 19 45 (8)
Connected vehicles (23) (26) (28) (24) (24)
Others 7 9 2 (2) (12)
Source: Company

Anand Rathi Research 8

4 August 2020 KPIT Technologies – Performance converging to peers, large deal ramp-up in H2; Buy

Valuations
The stock quotes at 10.2x FY22e EPS of `6.6, which we find attractive
given that the company is likely to grow faster than the industry in the
medium term (14.3%overall revenue growth in FY20) and decline less than
peers in FY21. It is also expected to clock 11.2% growth in FY22 once the
auto industry recovers.
Its focus on its top-25 strategic clients (of its 55 active ones) and the
expansion of its business to newer new-gen companies and regions such as
China make us optimistic about its performance as China (the largest auto
market in the world and an important one for European auto) is resuming
economic activity Also, the company is confident of enjoying greater
profitability (15%) in the next few years by higher offshoring although this
target was delayed by a year due to FY21 being damaged by Covid-19. On
the higher utilisation (target 75%), we expect the margin to recover to
14.6% by FY22 after flat performance in FY21 despite weak sales.
The net cash balance was `3,938m, a significant stepping up from the
~`1,810m it reported a year earlier. Higher cash generation should take the
total to ~`5.5bn by end-FY21. The FCF yield is now 11.4%.
Considering these positives, we have assigned a target multiple of
13xFY22e EPS, with a target price of `90. We recommend a Buy.

Fig 16 –Change in estimates(`m)

FY21e FY22e
New Old Chg.% New Old Chg.%
Revenues ($m) 273 283 (3.6) 303 312 (2.6)
Revenues 20,711 20,774 (0.3) 23,060 22,861 0.9
EBITDA 2,881 2,650 8.7 3,355 3,165 6.0
EBITDA margins % 13.9% 12.8% 115 bps 14.6% 13.8% 70 bps
EBIT 1,614 1,475 9.5 2,135 1,990 7.3
EBIT margins % 7.8% 7.1% 70 bps 9.3% 8.7% 55 bps
PBT 1,675 1,701 (1.5) 2,297 2,178 5.5
Net profit 1,349 1,364 (1.0) 1,811 1,722 5.2
Source: Anand Rathi Research

Fig 17 – PE band
23

KPIT
20

17

14

11

5
Apr/14

Apr/15

Apr/16

Mar/17

Mar/18

Mar/19

Mar/20
Aug/13
Dec/13

Aug/14
Dec/14

Aug/15
Dec/15

Jul/16
Nov/16

Jul/17
Nov/17

Jul/18
Nov/18

Jul/19
Nov/19

Jul/20

Source: Bloomberg, Anand Rathi Research

Risk
 Dependence on one vertical.

Anand Rathi Research 9

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 4 August 2020)
TP Share
120 KPIT Date Rating (`) Price (`)
1 16-May-19 Buy 140 97
105 3 2 29-Jul-19 Buy 135 80
1
3 24-Oct-19 Buy 130 80
90 4 29-May-20 Buy 85 47
2

75

60
4
45

30
Apr-19

Jun-19

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20
May-19

Feb-20

Jun-20

Jul-20
Mar-20

Apr-20

May-20

Anand Rathi Ratings Definitions

Analysts’ ratings and the corresponding expected returns take into account our definitions of Large Caps (>US$1bn) and Mid/Small Caps (<US$1bn) as described
in the Ratings Table below:
Ratings Guide (12 months)
Buy Hold Sell
Large Caps (>US$1bn) >15% 5-15% <5%
Mid/Small Caps (<US$1bn) >25% 5-25% <5%

Research Disclaimer and Disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014
Anand Rathi Share and Stock Brokers Ltd. (hereinafter refer as ARSSBL) (Research Entity) is a subsidiary of Anand Rathi Financial Services Ltd. ARSSBL is a
corporate trading and clearing member of Bombay Stock Exchange Ltd, National Stock Exchange of India Ltd. (NSEIL), Multi Stock Exchange of India Ltd (MCX-
SX) and also depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd. ARSSBL is engaged in the business of
Stock Broking, Depository Participant and Mutual Fund distributor.
The research analysts, strategists, or research associates principally responsible for the preparation of Anand Rathi research have received compensation based
upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues.
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