DDev Plastiks Industries Ltd

Strategic shift towards high value products poised to drive growth

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TABLE OF CONTENTS

Summary 03

Bull and Bear 04

Band Charts 05

Peer Comp 06

DPIL’s Financial summary 08

SWOT Analysis 09

DPIL’s story 10

DPIL’s business model 13

Key Triggers 15

Business Quality Score 18

Key Management Personnel 19

Risk & Concerns 19

Annual Report Key Takeaways 20

Quarterly Financials 21

Financial Statement Analysis & Projections 22

Disclaimer 23

Our recent initiating coverage reports

Piramal Pharma Responsive Inds VIP Industries Gravita India HFCL Ltd

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DDev Plastiks Industries Ltd

BUY @ CMP INR 378 Target: INR 600 in 24 months Upside Potential: 59%

Strategic shift towards high value products poised to drive growth

Ddev Plastiks Industries Ltd (DPIL) (demerged from Kkalpana Industries since Specialty
Industry
Chemicals
April 1st 2021) is a proxy play on the fast growing electrification theme. Over 70%
of its revenues come from the manufacture of high margin polyethylene-based
(PE) products such as Sioplas/XLPE (used in high voltage cables and wires), and Scrip Details
HFFR compounds (improves fire performance of cables). Apart from this, it has Face Value (INR) 1.0
been involved over the last couple of decades in the manufacture of compounds Market Cap (INR Cr) 3,909
for PVC, filler material, master batches, footwear, and engineering plastics. Price (INR) 378
No of Sh O/S (Cr) 10.4
Over the period FY22-23, revenues were flat with low margins as the company
3M Avg Vol (000) 325.9
was majorly manufacturing Antifab, filler compounds, master batches and PVC
compounds, which typically yield low realizations given the extremely 52W H/L (INR) 415/160
fragmented nature of the market. Since Q4FY23, the profitability of the company Dividend Yield (%) 0.26
has seen a tremendous surge with margins expanding to 10% owing to the
strategic shift in the product mix in favor of the high margin Sioplas, XLPE and Shareholding (%) Mar 2024
Promoter 74.97
newly introduced HFFR compounds. With demand for high voltage products set
to increase, import substitute XLPE and HFFR demand is only set to grow
Institution 0.26
exponentially. By virtue of the fact that it is the largest XLPE manufacturer in the
country and one of the two HFFR compound manufacturers, DPIL is expected to Public 24.77
be one of the biggest beneficiaries. TOTAL 100.0

We expect revenues to grow at a CAGR of 15% to INR 3,705 crore by FY27 driven
Price Chart
by increasing contribution from XLPE/Sioplas and HFFR compounds (with
production of XLPE/Sioplas and HFFR, jointly increasing at CAGR of 15%) while 450 90000
DPIL Sensex
traditional product volumes are expected to remain stagnant. EBITDA and PAT 400 80000

are expected to grow at a CAGR of 16% and 18% to INR 400 crores and 297 crores 350 70000
300 60000
respectively. EBITDA and PAT margins are expected to sustain at 10.8% and 8.0%
250 50000
respectively owing to increasing contribution of high margin products. Despite 200 40000
capex of INR 300 crores over the forecast period, free cash flow generation is 150 30000

expected to be significantly higher than previous years. 100 20000

50 10000
0 0
Jan-23

Jan-24
Sep-22
Nov-22

May-23

Sep-23
Nov-23

May-24
Jul-22

Jul-23
Mar-23

Mar-24
Recognizing the improving quality of earnings and consequent return ratios,
there has been a significant re-rating of the stock. We believe that the stock can
re-rate further as the improved earnings is expected to sustain. We initiate with
a BUY for a price target of INR 600 (22X FY27) over 24 months, representing an
upside of 59%.

Key consolidated financial data (INR Cr, unless specified)

Net Net EBITDA Net EPS BVPS RoE RoIC P/E EV/EBITDA
EBITDA
Revenue Profit (%) (%) (₹) (₹) (%) (%) (X) (X)
FY23 2,503.75 105.6 104.1 6.4 4.2 10.0 47.5 21.1 27.2 40.0 26.3
FY24 2,431.24 258.2 181.7 10.6 7.5 17.5 63.4 27.5 37.6 22.9 16.1
FY25E 2,825.00 305.1 228.1 10.8 8.1 21.9 83.5 26.3 35.2 18.2 13.6
FY26E 3,185.73 344.06 255.9 10.8 8.0 24.6 106.0 23.2 33.3 16.3 11.9
FY27E 3,706.00 400.25 297.4 10.8 8.0 28.6 132.2 21.6 32.3 14.0 10.1

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Our Bull and Bear Case Scenarios

We have prepared likely Bull and Bear case scenarios for FY27 price, based on
revenue growth, net margins and P/E multiples.
• Bull Case: We have assumed revenue of INR 4,075 cr (19% 3-year CAGR) and
a net margin of 8.3% at a P/E of 24X, which will result in a Bull Case price target
of INR 642 per share (an upside of 70% from CMP).
• Bear Case: We have assumed revenue of INR 3,334 cr (11% 3-year CAGR) and
a net margin of 7.6% at a P/E of 18X, which will result in a Bear Case price target
of INR 435 per share (an upside of 15% from CMP).

Bull & Bear Case Scenario

Revenue of INR 4,075 cr, net margin of Bull Case Price

8.8% and 24X P/E INR 642 per share

Revenue of INR 3,705 cr, net margin of Target Price

8.0% and 22X P/E INR 600 per share

Current Price
INR 398 per share

per share
Revenue of INR 3,334 cr, net margin of Bear Case Price
7.6% and 18 X P/E INR 435 per share

Source: BSE & Ventura Research

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Strong growth outlook, improving profitability and healthy balance sheet to sustain valuation

P/E band chart

Adj Price 9.59x 11.49x 13.39x 15.29x 17.19x

460

410

360

310

260

210

160

110

60

10

PE and its standard deviation

25.0
P/E Average Upper SD1 Upper SD2 Lower SD1 Lower SD2

20.0

15.0

10.0

5.0

0.0

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 Valuation and comparable metrics of domestic and global companies
P/E Ratio EV/Sales EV/EBIDTA RoE (%) RoIC (%) Sales EBITDA Margin (%) Net Margin (%)
Company Name Mkt Cap Price PEG (x)
2025 2026 2027 2025 2026 2027 2025 2026 2027 2025 2026 2027 2025 2026 2027 2025 2026 2027 2025 2026 2027 2025 2026 2027
Ddev Plastiks 4,121.0 400.0 0.8 18.3 16.3 14.4 1.5 1.3 1.1 13.5 10.9 9.5 26.3 23.4 21.8 35.5 31.6 30.3 2,747.0 3,104.1 3,507.7 11.2 12.0 12.0 8.3 8.3 8.5
RR Kabel 19,766.4 1,752.1 1.1 47.0 35.3 30.0 2.5 2.1 1.8 31.5 23.8 20.1 19.1 20.8 20.6 22.9 27.3 28.3 7,950.6 9,384.6 10,716.6 8.0 8.8 9.1 5.3 6.0 6.1
KEI Industries 41,118.1 4,556.5 7.2 72.5 72.5 72.5 5.0 5.0 5.0 41.6 37.8 34.4 17.1 16.3 15.6 34.7 38.2 42.0 8,104.1 8,104.1 8,104.1 10.9 10.9 10.9 7.0 7.0 7.0
Finolex Cables 23,987.0 1,568.4 2.8 33.5 30.4 27.7 3.9 3.6 3.3 33.6 30.5 27.8 13.8 14.5 15.2 22.3 24.5 27.0 5,515.8 6,067.4 6,674.2 11.7 11.7 11.7 13.0 13.0 13.0
Polycab India 1,06,582.3 7,091.6 4.5 54.3 49.4 44.9 5.3 4.8 4.4 38.1 34.7 31.5 22.8 23.9 25.0 40.3 44.4 48.8 19,749.8 21,724.8 23,897.2 13.9 13.9 13.9 9.9 9.9 9.9
Supreme Industries 9,068.7 71.4 2.3 70.2 56.8 48.8 7.3 6.2 5.3 47.8 39.3 33.1 21.1 22.4 22.2 31.6 32.9 35.4 1,224.5 1,434.8 1,672.0 15.3 15.8 16.0 10.6 11.1 11.1
Time Technoplast 7,654.3 337.3 1.9 22.4 20.4 18.5 1.5 1.4 1.2 10.9 9.9 9.0 12.7 13.3 14.0 18.1 19.9 21.9 5,491.8 6,040.9 6,645.0 13.8 13.8 13.8 6.2 6.2 6.2
Bhansali Engineering 3,397.9 136.5 1.4 17.2 15.7 14.2 2.4 2.2 2.0 14.1 12.8 11.7 20.4 21.3 22.3 28.6 31.5 34.7 1,343.9 1,478.3 1,626.1 17.1 17.1 17.1 14.7 14.7 14.7
Apar Industries 33,520.9 8,345.1 3.1 36.9 33.6 30.5 1.9 1.7 1.6 19.9 18.1 16.5 22.3 23.4 24.5 41.8 46.0 50.6 17,649.7 19,414.6 21,356.1 9.5 9.5 9.5 5.1 5.1 5.1
Voltamp Transformers 11,442.2 11,309.8 2.8 33.8 30.8 28.0 6.4 5.8 5.3 32.1 29.2 26.5 23.8 24.9 26.1 26.5 29.1 32.0 1,777.8 1,955.6 2,151.2 19.9 19.9 19.9 19.0 19.0 19.0
ABB India 1,77,990.3 8,399.4 7.7 92.7 84.2 76.6 12.6 11.4 10.4 76.0 69.1 62.8 24.6 25.8 27.0 83.0 91.3 100.4 13,780.1 15,158.1 16,673.9 16.5 16.5 16.5 13.9 13.9 13.9
Siemens India 2,64,821.7 7,436.3 7.9 95.6 86.9 79.0 10.4 9.5 8.6 75.0 68.2 62.0 17.6 18.4 19.3 53.5 58.9 64.8 24,538.7 26,992.5 29,691.8 13.9 13.9 13.9 11.3 11.3 11.3
Transformers & Rectifiers 11,510.6 767.0 19.4 235.2 213.8 194.4 8.4 7.7 7.0 79.6 72.3 65.7 8.0 8.4 8.8 14.9 16.4 18.0 1,394.0 1,533.4 1,686.7 10.6 10.6 10.6 3.5 3.5 3.5
Global Peers
LyondellBasell 31,002.5 95.2 2.4 11.4 9.9 9.9 0.9 1.1 1.1 7.5 6.7 6.7 19.8 21.6 21.5 17.0 19.3 18.9 41,508.9 35,041.6 34,893.2 12.6 16.3 16.7 6.5 8.9 9.0
Sabic 58,836.1 19.6 0.6 38.1 17.7 14.6 1.5 1.4 1.4 9.2 6.8 6.5 3.5 7.3 8.7 5.7 10.5 11.7 37,709.5 40,302.0 42,296.0 16.0 20.6 21.3 4.1 8.2 9.5
Polyone Corp 3,996.4 43.8 1.0 19.1 16.4 14.6 1.7 1.6 1.4 10.4 9.5 8.1 9.0 10.3 10.0 8.9 10.2 11.6 3,214.9 3,384.3 3,572.0 16.4 17.0 17.7 6.5 7.2 7.6
Prysmian SpA 17,075.6 61.6 1.0 19.4 16.1 15.1 1.1 0.9 0.9 9.9 8.3 7.8 18.6 19.5 18.0 24.7 28.0 25.2 16,739.5 18,504.1 19,635.8 10.8 11.4 11.7 5.3 5.7 5.7
ABB 1,03,589.4 55.7 2.2 25.4 23.2 21.4 3.1 2.9 2.7 16.4 14.7 13.7 27.3 25.9 24.4 34.2 37.2 37.3 33,427.1 35,344.7 37,329.0 19.1 19.8 19.8 12.2 12.7 13.0
Siemens AG 1,43,871.6 179.8 1.5 16.2 14.8 13.7 2.1 1.9 1.7 11.6 10.2 9.1 15.9 16.1 16.1 13.3 15.2 17.1 85,157.0 89,467.0 94,631.1 17.8 18.8 19.2 10.4 10.9 11.1

Source: ACE Equity, Company Reports & Ventura Research

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 Strong revenue growth and margin expansion deserve re-rating in valuation
110

100
ABB India
90

80
FY27 RoIC (%)

70
Siemens
60
Apar
50 Polycab
Ddev Plastiks
40 Supreme Inds KEI Inds

30 Voltamp
Bhansali Engg
Finolex Cables
RR Kabel
20
Time Techno
10

0
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0
PEG ratio

20

RR Kabel

15
FY24-27 revenue CAGR (%)

Transformers & Ddev Plastiks

Rectifiers Siemens
ABB India
10 Polycab Bhansali Engg Voltamp

Finolex Cables Supreme Inds

Apar Time Techno

0 KEI Inds
7 9 11 13 15 17 19 21

(5)
FY27 EBITDA margin (%)

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DPIL’s Financial Summary

Fig in INR Cr (unless specified) FY22 FY23 FY24 FY25E FY26E FY27E FY28E FY29E FY30E
Revenue from operations 2,226.9 2,503.7 2,431.2 2,825.0 3,185.7 3,706.0 4,179.2 4,712.9 5,314.7
YoY Growth (%) 12.4 (2.9) 12.8 12.8 12.8 12.8 12.8 12.8
Raw Material Cost 1,936.3 2,149.1 1,955.9 2,260.0 2,548.6 2,964.8 3,343.4 3,770.3 4,251.7
RM Cost to Sales (%) 86.9 85.8 80.4 80.0 80.0 80.0 80.0 80.0 80.0
Employee Cost 33.1 35.2 38.9 45.2 51.0 59.3 66.9 75.4 85.0
Employee Cost to Sales (%) 1.5 1.4 1.6 1.6 1.6 1.6 1.6 1.6 1.6
Other Expenses 152.0 159.5 178.3 214.7 242.1 281.7 317.6 358.2 403.9
Other Expenses to Sales (%) 6.8 6.4 7.3 7.6 7.6 7.6 7.6 7.6 7.6
EBITDA 105.6 159.9 258.2 305.1 344.1 400.2 451.4 509.0 574.0
EBITDA Margin (%) 4.7 6.4 10.6 10.8 10.8 10.8 10.8 10.8 10.8
PAT 54.8 104.1 181.7 228.1 255.9 297.4 335.0 377.8 426.0
PAT Margin (%) 2.5 4.2 7.5 8.1 8.0 8.0 8.0 8.0 8.0
Net Profit 54.8 104.1 181.7 228.1 255.9 297.4 335.0 377.8 426.0
Net Margin (%) 2.5 4.2 7.5 8.1 8.0 8.0 8.0 8.0 8.0

Adjusted EPS 5.3 10.0 17.5 21.9 24.6 28.6 32.2 36.3 41.0
P/E (X) 75.9 40.0 22.9 18.2 16.3 14.0 12.4 11.0 9.8
Adjusted BVPS 37.7 47.5 63.4 83.5 106.0 132.2 161.6 194.8 232.3
P/BV (X) 10.6 8.4 6.3 4.8 3.8 3.0 2.5 2.1 1.7
Enterprise Value 4,283.0 4,208.8 4,149.3 4,159.4 4,091.3 4,023.1 3,919.5 3,795.2 3,647.2
EV/EBITDA (X) 40.6 26.3 16.1 13.6 11.9 10.1 8.7 7.5 6.4

Net Worth 391.9 494.3 659.9 868.5 1,102.5 1,374.4 1,680.9 2,026.3 2,415.9
Return on Equity (%) 14.0 21.1 27.5 26.3 23.2 21.6 19.9 18.6 17.6
Capital Employed 520.9 550.0 725.9 966.6 1,213.1 1,503.2 1,826.0 2,190.0 2,600.5
Return on Capital Employed (%) 13.1 19.9 25.2 23.6 21.2 19.9 18.5 17.4 16.5
Invested Capital 514.9 543.1 649.1 867.9 1,033.7 1,237.6 1,440.4 1,661.5 1,903.1
Return on Invested Capital (%) 18.3 27.2 37.6 35.2 33.3 32.3 31.3 30.6 30.2

Cash Flow from Operations 26.5 145.1 116.2 167.1 201.3 216.4 263.6 297.2 335.2
Cash Flow from Investing (18.0) (35.2) (17.9) (150.4) (101.9) (112.1) (119.0) (126.7) (135.1)
Cash Flow from Financing (10.0) (109.0) (28.5) 5.2 (18.7) (18.1) (24.5) (27.6) (31.2)
Net Cash Flow (1.5) 0.9 69.8 21.9 80.7 86.2 120.0 142.9 168.9
Free Cash Flow 37.3 141.3 111.2 19.3 106.5 112.4 153.8 180.9 211.8
FCF to Revenue (%) 1.7 5.6 4.6 0.7 3.3 3.0 3.7 3.8 4.0
FCF to EBITDA (%) 35.4 88.3 43.1 6.3 30.9 28.1 34.1 35.5 36.9
FCF to Net Profit (%) 68.2 135.7 61.2 8.5 41.6 37.8 45.9 47.9 49.7
FCF to Net Worth (%) 9.5 28.6 16.9 2.2 9.7 8.2 9.1 8.9 8.8

Total Debt 129 56 66 98 111 129 145 164 185

Net Debt 123 49 -11 -1 -69 -137 -240 -365 -513
Net Debt to Equity (X) 0.3 0.1 (0.0) (0.0) (0.1) (0.1) (0.1) (0.2) (0.2)
Net Debt to EBITDA (X) 1.2 0.3 (0.0) (0.0) (0.2) (0.3) (0.5) (0.7) (0.9)
Source: ACE Equity, Company Reports & Ventura Research

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 DPIL SWOT Analysis in a nutshell

DPIL Ltd

Investment
Growth Drivers Key Challenges New Trends
Themes

7X growth potential of HFFR

Trend towards high voltage Shakun Polymers and DPIL are
market to 200 KT by FY30 and
Volatility in raw material transmission cables to the only domestic HFFR
doubling of XLPE market by
prices. improve future outlook for manufacturers with firm capex
FY32 augurs well for future
XLPE compounds. plans to expand capacity.
growth.

Shift in product mix in favor of Any change in government

HFFR increasingly replacing Largest domestic
high margin products to policies that leads to
PVC in the manufacture of manufacturer of XLPE
improve profitability slowdown in electrifiation
cables. compounds.
substantially. capex.

Source: ACE Equity, Company Reports & Ventura Research

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 DPIL’s story
Increasing contribution from high realization
Revenue growth
products to drive revenue growth
• Strong revenue visibility given the focus on import Revenue YoY Growth (%)
substitute manufacturing and strong global tailwinds of
the electrification theme. 4,000 15
• Revenue set to increase at 15% CAGR over the forecast 3,500
period FY24-27 to INR 3,705 crore driven by - 3,000 10
• Sioplas/ XLPE production and HFFR revenue to primarily 2,500
drive revenue, growing at 15% CAGR over the forecasted
period.
2,000 5
• HFFR production expected to increase to increase to 1,500
6000 tonnes (CAGR of 64%). Capacity to be enhanced 1,000 0
to 20,000 tonnes by FY26 in 2 tranches. 500
• PVC compounds production is expected to increase to
28,600 tonnes (CAGR of 4%)
0 (5)

• Antifab’s revenue to remain in the same lines with

FY22 FY23 FY24 FY25E FY26E FY27E

almost 100% utilization. Installed Capacity

Antifab PVC Compounds
Domestic polymer compounding industry
• Polymer compounding is highly favored in the electrical Sioplas/XLPE/Semicons Engineering Products
industry due to its properties such as electrical HFFR
insulation, corrosion resistance, excellent heat
resistance, high tensile strength, durability, and low 300000

density. India's power requirement is projected to reach 250000

817 GW by 2030.
• The cable compounding industry in India has a size of 2.5
200000

lakh tonnes per annum (ltpa), with Ddev Plastiks holding 150000
approximately one-third of the market share. There is a 100000
direct correlation between the growth of the cable
industry and the demand for polymer compounds. 50000
• The Indian wires and cables market is expected to grow 0
at a rate of 12.5%, increasing in value from INR 74,800 FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E
crore in FY23 to INR 1,20,000 crore by FY27.
DPIL’s Capacity Utilization and Average Realization per kg
Capacity utilisation (MTPA) FY20 FY21 FY22 FY23 FY24 Average Realization per kg
Antifab installed capacity 50,000 50,000 36,000 36,000 20,500
% utilisation 48% 55% 96% 76% 111% 35-40
Production 24,000 27,500 34,560 27,360 22,755
PVC Compounds 40,000 44,000 44,000 44,000 44,000
% utilisation 84% 54% 42% 48% 57% 70-90
Production 33,600 23,760 18,480 21,120 25,080
Sioplas/XLPE/Semicons 1,28,500 1,28,500 1,42,500 1,42,500 1,53,500
Low Volt : 110-120
% utilisation 61% 53% 59% 65% 75%
High Volt : 240-250
Production 78,385 68,105 84,075 92,625 1,15,125
Engineering Products 14,500 14,500 14,500 14,500 14,500
% utilisation 20% 36% 23% 13% 12% 160-179
Production 2,900 5,220 3,335 1,885 1,740
HFFR - - - 2,000 5,000
% utilisation - - - 35% 27% 150
Production - - - 700 1,350
TOTAL 2,33,000 2,37,000 2,37,000 2,39,000 2,37,500
% utilisation 60% 52% 59% 60% 70% 147
Production 1,39,800 1,23,240 1,39,830 1,43,400 1,66,250
Source: ACE Equity, Company Reports & Ventura Research

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`

Margins set to improve Improved product mix and launch of new

products to drive margins
Profitability ratios are expected to improve due to EBITDA Net Profit
change in product mix in favor of high margin
Sioplas/XLPE and HFFR compounds.
EBITDA Margin (%) (RHS) Net Margin (%) (RHS)
500 12

Typical margin profile 400 10

Antifab: 3-5% 300

8
PVC compounds: 4-6% 6
Sioplas/ XLPE compounds: 8-12% 200
4
Engineering Plastic compounds: 10-15% 100 2
HFFR: 10-12%
0 0
FY22 FY23 FY24 FY25E FY26E FY27E

Operational efficiency to stablilize Working capital pressure to reduce

Working Capital
Payable Days Inventory Days • Disciplined inventory management and strategic
Receivable Days Net Working to Sales (%) (RHS)
location of facilities to drive operational
efficiency
100 20 • Proximity to suppliers and ports also helps keep
a tight control over inventory (around 30 days).
DPIL has also increased its share of imports from
50 10 the Middle East, where it gets an interest-free
credit period.

0 0
FY22 FY23 FY24 FY25E FY26E FY27E

Earnings growth and easing working capital to aid Earnings growth and lower NWC to
cash flows drive cash flows
CFO FCFF

Despite capex, DPIL is expected to report positive CFO to EBITDA (%) FCFF to Net Profit (%)
cash flows due to Strong earnings growth from the 250 150
product segment (XLPE and HFFR).
200
FCFF yield (FY27) at CMP is reasonable at 3% 150
100

100
50
50

0 0
FY22 FY23 FY24 FY25E FY26E FY27E

Source: ACE Equity, Company Reports & Ventura Research

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`

Return ratios are exepcted to follow

Return ratios are set to improve
the profitability
Net Worth Invested Capital Return ratios are expected to improve due to
RoE (%) RoIC (%) strong earnings growth driven by:
1,500 40
• Significant revenue growth across all
30
business verticals.
1,000 • Improving profit margins due to rising
20 revenue share of product verticals.
500
10

0 0
FY22 FY23 FY24 FY25E FY26E FY27E

Capex plan in place to enhance capacities Planned Capex Targets (INR cr)
140
DPIL is targeting to incur a capex of INR 300 cr over
2024-27 (INR 30 in 2024, INR 125 cr in 2025, INR 70 cr 120
in 2026 and INR 75 cr in 2027) towards
• Expansion of HFFR compounding capacity by 100

5,000 MTPA. 80
• Debottlenecking.
• New Greenfield Site at East & West. 60
• Expansion of HFFR compounding capacity by
15,000 MTPA. Building space for further 40

capacity for all compounds.

20
• Expansion of PE compounding capacity by
25,000 MTPA. 0
2024 2025E 2026E 2027E

Source: ACE Equity, Company Reports & Ventura Research

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`

DPIL’s Business Model

DPIL is one of the leading manufacturers of polymer compounds in India with a capacity of 2,37,500 MTPA (as
on March 31, 2024) with state of the art machinery, infrastructure, equipment, and R&D facilities.

The company has extensive range of products. While PVC compounds are primarily commoditized products
with a significant unorganized market presence, competitive intensity decreases higher up the value chain. The
company holds approximately 50% market share in Sioplas and about 33% in XLPE compounds. Key domestic
competitors include Shakun Polymers, Hanwha, Borealis Plastics, KLJ Group, BLS Polymers, and Plastiblends in
masterbatches, as well as Bhansali Engineering Polymers Ltd in engineering compounds. Strong R&D
Capabilities, inhouse technology and strong technical manpower acts as a moat for the company.

DPIL’s Business Process

Source: ACE Equity, Company Reports & Ventura Research

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Product segment Detail

Antifab/Filled Compounds/Master
Batches
• Widely utilized in the packaging industry, including
applications such as woven bags and cement bags.
• Ddev Plastiks is the leading organized player in a
highly fragmented, predominantly unorganized
market.
• Margins range between approximately 3-5%.

PVC Compounds

• Niche product with high margins.

• Widely used in the wire and cable industry, as well as
the construction industry.
• The global polymer compounding market is
projected to reach USD 115 billion by FY30.
• Margins range from approximately 4-6%.

Sioplas/XLPE Compounds/Semicons • A global leader in XLPE and EHV compounds since

1980.
• The sole provider in the country offering products
from 66kV to 132kV.
• Significant revenue contributor, holding about 50%
market share in Sioplas and around 33% in XLPE
compounds.
• Margins are approximately 8-12%.

Engineering Plastic Compounds

• Widely used in White Goods and FMEG Industry.

• High growth market with very limited players in India
• White Goods market is estimated to cross $21bnby
2025 expanding at aCAGR of 11%.
• Margins: 10-15%

Halogen Free Flame Retardant(HFFR)

• Amongst the two producers of HFFR in India.

• HFFR market expected to reach 2 lakh tonnes by
FY30. DPIL aims to cater to one third of this demand.
• Margins: 10-12%

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Key Developments

Approval for WTR (Water Tree Retardant) XLPE for 72 KV Application

DPIL has launched their 1st locally produced WTR XLPE (Water Tree Retardant XLPE) for the insulation of cables
up to 72 KV. This insulation material is highly effective in reducing the growth of electrical treeing caused by
water, making it a superior choice for insulation purposes. Reduced treeing results in better service life of the
cable resulting in better returns for electrical distribution companies. This product was primarily imported,
however, DPIL has introduced an exceptional version that has successfully passed a long-term test at a third-
party laboratory

XL HFFR (Cross Linkable HFFR) Compound for Solar / Photovoltaic Cable Application

DPIL has commercially launched cross linkable HFFR for major applications in Solar / Photovoltaic Cable

DPIL Triggers

Robust growth in the wires and cables industry bodes well for DPIL
The wires and cables industry registered ~11% CAGR over FY14-18, followed by flat growth over FY18-21. The
industry is expected to achieve ~13% CAGR by value over FY23-27. Government capex, robust real estate
market, shift to EVs and drive for renewable energy is expected to drive wire and cables industry growth. DPIL
holds a leading position in the PE compounds market, serving the low- and medium-voltage power cable
sector. This is bolstered by a diverse product range utilized in producing building wires, control and
instrumentation cables, and for the insulation and jacketing of wires within the wire and cable industry.

Shift in revenue mix towards value-added products

Ddev has cemented its position as a market leader in PVC compounds, but this segment is highly
commoditized, resulting in lower margins. To address this, they have shifted their focus to more value-added
products with higher profit margins. Following the demerger, Ddev reallocated its production capacities from
low voltage to medium and high voltage offerings. Currently, the company provides XLPE products up to 72KV
and is actively working towards expanding this range to 132KV. It plans to launch 220 KV in FY25. Going forward,
it plans to enter 440 KV as well.Higher voltage ratings transform these into niche products, yielding better
margins.

HFFR: A prospective lead forward

PVC Cables set to become a relic Planned HFFR capacity expansion
Polyvinyl chloride (PVC) was initially a popular choice (MTPA)
for wiring due to its excellent fire-resistant properties. 25000
However, many developed countries are now moving
away from PVC-insulated or sheathed wiring in favor of
20000

alternative Halogen-Free Flame Retardant (HFFR) 15000

compounds. This shift is primarily driven by
environmental considerations and health and safety
10000 20000

concerns. As a result, there is an increasing demand for 5000

materials that can replace PVC in schools, colleges, 5000
high-rise buildings, and commercial complexes. These
0
FY26( E)
FY23

new materials do not emit smoke or toxic fumes and are

free of halogens

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DPIL capitalizing on this opportunity

• The company forayed into the HFFR product segment in FY23 as they foresee an increase in demand in the
coming years. This product line is gradually going to replace PVC compounds and be used in home wiring
as well since they are much safer. In the event of a fire, the light transmission in HFFR is 90% vs 20-30% in
PVC cables allowing for safe evacuation. DPIL has forayed into producing Halogen Free Flame Retardant
(HFFR) compounds and production facilities have been expanded from 2000MT in FY23 to 5000 MT in
FY24. HFFR market is expected to grow 7X reaching 2 lakh tonnes by FY30. DPIL aims to cater to one third
of this increased demand. Shakun polymers, the only other player in HFFR, is expected to shift focus to
global market, thereby creating gap in the domestic market benefitting DPIL.

5 modern state-of-the-art manufacturing facilities

DPIL is the largest manufacture of polymer compounds in India with installed capacity of 2,37,500 MT. It has
5 modern state of art manufacturing plants situated in the state of West Bengal, Daman & Diu and Dadra &
Nagar Haveli, strategically located at both East & West coast of India results in lower freight costs.

Installed
Name of the Plant Products manufactured Capacity
(MTPA)
Anti fibrillation Compound 12000
Dhulagarh – West
Sioplas & Semicon 15000
Bengal
PVC Compound 6000
Silvasa - Dadra PVC Compounds Cables 38000
Plant 1 HFFR 5000
Silvasa - Dadra
Plant 2 Semicon Compounds 2500
Daman, Daman & EP Compounds 14500
Diu Anti fibrillation Compound 8500
Semicon 8400
Surangi, Dadra
Sioplas 92600
and Daman, UT
Peroxide 35000
Total 237500

Source: ACE Equity, Company Reports & Ventura Research

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Strong relationship with marquee customers – global and domestic

DPIL has established strong relationships with renowned clientele provide stability to revenues and drive
business going forward.

Domestic

Exports

Source: ACE Equity, Company Reports & Ventura Research

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Ventura Business Quality Score

Key Criteria Score Risk Comments
Management & Leadership
The management is of high quality. It has been able to deliver on its
Management Quality 9 Low
guidance; investor-friendly with timely updates on developments

The promoter holding in the company is 62.7%, which gives them

Promoters Holding Pledge 8 Low
controlling stake.

The average experience of the directors is >25 years with significant

Board of Directors Profile 8 Low
experience in their respective sectors and expert areas
Industry Consideration
The HFFR market is poised to grow 7x from ~28,000 MT as of today to
~2 lakh MT by FY30. It is expected to replace fast PVC House wiring
Industry Growth 8 Low
cables and the govt mandate has already come to use/replace in all
public places.

Regulatory Environment or Risk 8 Medium PVC materials are not directly regulated

Polymer compounds business runs on strong B2B relations, which

Entry Barriers / Competition 8 Low DPIL has established with Indian and overseas companies and it is a
strong entry barrier.
Business Prospects
India’s largest and leading manufacturer of XLPE compounds,
New Business / Client Potential 8 Low product portfolio further extended to High Voltage PE based Cable
Compounds and HFFR Compounds.

DPIL is expanding its product portfolio and also exploring

Business Diversification 8 Low
opportunities global market.
DPIL is establishing its presence in the polymer compounding
Market Share Potential 8 Low market by offering new products including HFFR and high volt XLPE
compounds.
New products launched generates better margins compared to
Margin Expansion Potential 8 Low existing polymer compounds. With the improving share of these
product segments, margins are expected to improve.

Strong revenue growth along with improving profit margins is

Earnings Growth 8 Low
expected to accelerate earnings growth.
Valuation and Risk

Improving cash flow is expected to improve balance sheet health in

Balance Sheet Strength 8 Low
the coming years

DPIL is incurring a capex of INR 300 cr, which will be largely funded
Debt Profile 8 Low
through internal accruals.

Despite capex, DPIL is expected to report positive FCF in the

FCF Generation 8 Low
forecasted period.
Despite its growth phase, DPIL has sustained a 5-10% dividend
Dividend Policy 8 Low
payout ratio.
Total Score
121 The overall risk profile of the company is good and we consider it a
Low
80.6% LOW-risk company for investments
Ventura Score (%)

Source: Company Reports & Ventura Research

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Management Team
Key Person Designation Details

Mr. Narrindra Suranna Chairman & MD Mr. Narindra Surana, born in 1961, is an Indian businessman,
philanthropist, and humanitarian. He graduated from Calcutta
University in 1984 with an L.L.B. degree and has been associated
with the company since its inception. With extensive
experience in the plastic industry, Mr. Surana's vision and
business acumen have driven the group to immense success.
His venture into the compounding sector has positioned the
company as one of India’s leading polymer compound
manufacturers, earning global recognition.

Director Mr. Ddev Surana is a dynamic business leader and the key
Mr. Ddev Surana
driving force behind Ddev Plastiks Industries Limited. He
graduated from Calcutta University and holds an MSc in
Management for Business Excellence from the University of
Warwick, UK, as well as an MBA (CAM) from the University of
Boston, USA. His key skills include project management, human
resources, administration, and information technology.
Mr. Rajesh Kothari Whole Time Director Born in 1964, Mr. Kothari graduated from Rajasthan University,
Ajmer, in 1985. With over 25 years of experience in marketing,
after-sales service, and market research, he began his career at
Kanoria Chemicals & Industries Limited in 1985. He has been
associated with the group since 1997 and currently serves on its
board as a Whole Time Director. As one of the key members, he
has significantly contributed to the group's substantial growth.
Mr. Arihant Bothra CFO Born in 1989, Mr. Arihant Bothra graduated from Calcutta
University in 2010. He is an associate member of the Institute of
Chartered Accountants of India and is currently pursuing his
CFO program at IIM Calcutta. With over a decade of experience,
Mr. Bothra's core competencies lie in finance, projects,
insurance, and systems, encompassing finance, accounting,
insurance, information systems, and project financing.

Source: Company Reports

Business risk

• The company faces competition from the unorganized sector and

imports in the plastic compounds market, this can adversely affect the
company’s pricing power and volumes and impact profitability.
• The company can fail to estimate future raw material costs due to price
volatility impacting the margins of the company.
• Heavy reliance on the cable and power segments, with any decline in
these sectors affecting margins and security.
• The company exports its products to various countries, exposing the
company to foreign exchange risk.

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Annual Report Takeaways

Board of Directors
Details of Board of Directors
Particular FY23 FY22
Mr. Narrindra Suranna CH & MD CH & MD
Mr. Rajesh Kothari WTD WTD
Mr. Ddev Surana WTD WTD
Mrs. Mamta Binani NEID NEID
Mr. Samir Kumar Dutta NEID NEID
Ms. Ramya Hariharan NEID NEID
Mr. Arihant Bothra CFO CFO
Mrs. Tanvi Goenka CS CS
Source: Annual Reports

Auditor’s qualifications and significant notes to accounts

In auditor’s opinion, to the best of their information and according to the
explanations given to them, the Company has, in all material respects, an
adequate internal financial controls system with reference to financial
statement and such internal financial controls with reference to financial
statement were operating effectively as at March 31, 2023, based on the
internal control with reference to financial statement criteria established by
the Company considering the essential components of internal control
stated in the Guidance Note issued by ICAI.

Related Party Transactions and Balances

DPIL Related Party
Particular FY23 FY22
Remuneration 2.1 -
Purchase of Goods 263.0 -
Sale of Goods 18.28 -
Other Receivables 6.91 5.08
Rent 1.06 1.07
Interest Expense - 3.32
Loan Given - 0.03
Interest Payable - 0.17
Source: Annual Reports

DPIL’s Contingent Liability

Particular FY23 FY22
Bank Guarantee 14.54 5.17
Capital Commitments 0.58 0.57
Letter of Credit 58.75 49.21
Total 73.87 54.95
Source: Annual Reports

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DPIL’s quarterly and annual performance

Fig in INR Cr (unless specified) FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 FY24 FY25E FY26E FY27E
Revenue from operations 2,226.9 537.1 644.7 654.7 667.2 2,503.7 638.1 642.3 553.5 597.3 2,431.2 2,825.0 3,185.7 3,706.0
YoY Growth (%) 6.2 14.1 22.6 7.2 12.4 18.8 (0.4) (15.5) (10.5) (2.9) 12.8 12.8 12.8
Raw Material Cost 1,936.3 473.8 572.5 563.1 539.8 2,149.1 536.5 531.9 444.4 443.1 1,955.9 2,260.0 2,548.6 2,964.8
RM Cost to Sales (%) 86.9 88.2 88.8 86.0 80.9 85.8 84.1 82.8 80.3 74.2 80.4 80.0 80.0 80.0
Employee Cost 33.1 7.9 7.7 9.9 9.7 35.2 8.8 9.4 10.6 10.1 38.9 45.2 51.0 59.3
Employee Cost to Sales (%) 1.5 1.5 1.2 1.5 1.4 1.4 1.4 1.5 1.9 1.7 1.6 1.6 1.6 1.6
Other Expenses 152.0 29.2 39.1 40.0 51.3 159.5 38.9 40.7 38.4 60.3 178.3 214.7 242.1 281.7
Other Expenses to Sales (%) 6.8 5.4 6.1 6.1 7.7 6.4 6.1 6.3 6.9 10.1 7.3 7.6 7.6 7.6
EBITDA 105.6 26.2 25.4 41.7 66.5 159.9 53.9 60.3 60.1 83.8 258.2 305.1 344.1 400.2
EBITDA Margin (%) 4.7 4.9 3.9 6.4 10.0 6.4 8.5 9.4 10.9 14.0 10.6 10.8 10.8 10.8
PAT 54.8 14.3 18.7 22.8 48.3 104.1 37.8 42.3 40.1 61.5 181.7 228.1 255.9 297.4
PAT Margin (%) 2.5 2.7 2.9 3.5 7.2 4.2 5.9 6.6 7.2 10.3 7.5 8.1 8.0 8.0
Net Profit 54.8 14.3 18.7 22.8 48.3 104.1 37.8 42.3 40.1 61.5 181.7 228.1 255.9 297.4
Net Margin (%) 2.5 2.7 2.9 3.5 7.2 4.2 5.9 6.6 7.2 10.3 7.5 8.1 8.0 8.0

Adjusted EPS 5.3 10.0 17.5 21.9 24.6 28.6

P/E (X) 75.9 40.0 22.9 18.2 16.3 14.0
Adjusted BVPS 37.7 47.5 63.4 83.5 106.0 132.2
P/BV (X) 10.6 8.4 6.3 4.8 3.8 3.0
Enterprise Value 4,283.0 4,208.8 4,149.3 4,159.4 4,091.3 4,023.1
EV/EBITDA (X) 40.6 26.3 16.1 13.6 11.9 10.1

Net Worth 391.9 494.3 659.9 868.5 1,102.5 1,374.4

Return on Equity (%) 14.0 21.1 27.5 26.3 23.2 21.6
Capital Employed 520.9 550.0 725.9 966.6 1,213.1 1,503.2
Return on Capital Employed (%) 13.1 19.9 25.2 23.6 21.2 19.9
Invested Capital 514.9 543.1 649.1 867.9 1,033.7 1,237.6
Return on Invested Capital (%) 18.3 27.2 37.6 35.2 33.3 32.3

Cash Flow from Operations 26.5 145.1 116.2 167.1 201.3 216.4
Cash Flow from Investing (18.0) (35.2) (17.9) (150.4) (101.9) (112.1)
Cash Flow from Financing (10.0) (109.0) (28.5) 5.2 (18.7) (18.1)
Net Cash Flow (1.5) 0.9 69.8 21.9 80.7 86.2
Free Cash Flow 37.3 141.3 111.2 19.3 106.5 112.4
FCF to Revenue (%) 1.7 5.6 4.6 0.7 3.3 3.0
FCF to EBITDA (%) 35.4 88.3 43.1 6.3 30.9 28.1
FCF to Net Profit (%) 68.2 135.7 61.2 8.5 41.6 37.8
FCF to Net Worth (%) 9.5 28.6 16.9 2.2 9.7 8.2

Total Debt 129 56 66 98 111 129

Net Debt 123 49 -11 -1 -69 -137
Net Debt to Equity (X) 0.3 0.1 (0.0) (0.0) (0.1) (0.1)
Net Debt to EBITDA (X) 1.2 0.3 (0.0) (0.0) (0.2) (0.3)
Source: ACE Equity, Company Reports & Ventura Research

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DPIL’s consolidated financials & projections

Fig in INR Cr (unless specified) FY22 FY23 FY24 FY25E FY26E FY27E Fig in INR Cr (unless specified) FY22 FY23 FY24 FY25E FY26E FY27E
Income Statement Per share data & Yields
Revenue 2,226.9 2,503.7 2,431.2 2,825.0 3,185.7 3,706.0 Adjusted EPS (INR) 5.3 10.0 17.5 21.9 24.6 28.6
YoY Growth (%) 12.4 (2.9) 16.2 12.8 16.3 Adjusted Cash EPS (INR) 6.4 11.2 18.8 21.9 24.6 28.6
Raw Material Cost 1,936.3 2,149.1 1,955.9 2,260.0 2,548.6 2,964.8 Adjusted BVPS (INR) 37.7 47.5 63.4 83.5 106.0 132.2
RM Cost to Sales (%) 86.9 85.8 80.4 80.0 80.0 80.0 Adjusted CFO per share (INR) 2.5 14.0 11.2 16.1 19.4 20.8
Employee Cost 33.1 35.2 38.9 45.2 51.0 59.3 CFO Yield (%) 0.6 3.5 2.8 4.0 4.8 5.2
Employee Cost to Sales (%) 1.5 1.4 1.6 1.6 1.6 1.6 Adjusted FCF per share (INR) 3.6 13.6 10.7 1.9 10.2 10.8
Other Expenses 152.0 159.5 178.3 214.7 242.1 281.7 FCF Yield (%) 0.9 3.4 2.7 0.5 2.6 2.7
Other Exp to Sales (%) 6.8 6.4 7.3 7.6 7.6 7.6
EBITDA 105.6 159.9 258.2 305.1 344.1 400.2 Solvency Ratio (X)
Margin (%) 4.7 6.4 10.6 10.8 10.8 10.8 Total Debt to Equity 0.3 0.1 0.1 0.1 0.1 0.1
YoY Growth (%) 51.5 61.5 18.2 12.8 16.3 Net Debt to Equity 0.3 0.1 (0.0) (0.0) (0.1) (0.1)
Depreciation & Amortization 11.5 12.1 14.2 0.0 0.0 0.0 Net Debt to EBITDA 1.2 0.3 (0.0) (0.0) (0.2) (0.3)
EBIT 94.0 147.8 244.0 305.1 344.1 400.2
Margin (%) 4.2 5.9 10.0 10.8 10.8 10.8 Return Ratios (%)
YoY Growth (%) 57.2 65.1 25.0 12.8 16.3 Return on Equity 14.0 21.1 27.5 26.3 23.2 21.6
Other Income 22.3 25.8 23.7 7.1 7.3 8.0 Return on Capital Employed 13.1 19.9 25.2 23.6 21.2 19.9
Bill discounting & other charges 40.8 33.2 23.1 7.4 9.4 10.8 Return on Invested Capital 18.3 27.2 37.6 35.2 33.3 32.3
Fin Charges Coverage (X) 2.3 4.4 10.6 41.3 36.6 37.2
Exceptional Item 0.0 0.0 0.0 0.0 0.0 0.0 Working Capital Ratios
PBT 75.6 140.4 244.6 304.8 341.9 397.4 Payable Days (Nos) 58 42 27 27 27 27
Margin (%) 3.4 5.6 10.1 10.8 10.7 10.7 Inventory Days (Nos) 45 32 31 31 31 31
YoY Growth (%) 85.7 74.3 24.6 12.2 16.2 Receivable Days (Nos) 57 53 60 60 60 60
Tax Expense 20.8 36.3 63.0 76.7 86.1 100.0 Net Working Capital Days (Nos) 45 42 63 63 63 63
Tax Rate (%) 27.5 25.8 25.7 25.2 25.2 25.2 Net Working Capital to Sales (%) 12.3 11.6 17.4 17.4 17.4 17.4
PAT 54.8 104.1 181.7 228.1 255.9 297.4
Margin (%) 2.5 4.2 7.5 8.1 8.0 8.0 Valuation (X)
YoY Growth (%) 90.0 74.5 25.5 12.2 16.2 P/E 75.9 40.0 22.9 18.2 16.3 14.0
Min Int/Sh of Assoc 0.0 0.0 0.0 0.0 0.0 0.0 P/BV 10.6 8.4 6.3 4.8 3.8 3.0
Net Profit 54.8 104.1 181.7 228.1 255.9 297.4 EV/EBITDA 40.6 26.3 16.1 13.6 11.9 10.1
Margin (%) 2.5 4.2 7.5 8.1 8.0 8.0 EV/Sales 1.9 1.7 1.7 1.5 1.3 1.1
YoY Growth (%) 90.0 74.5 25.5 12.2 16.2
Cash Flow Statement
Balance Sheet PBT 75.6 140.4 244.6 304.8 341.9 397.4
Share Capital 9.4 9.4 10.4 10.4 10.4 10.4 Adjustments 245.2 57.6 66.6 7.4 8.1 9.3
Total Reserves 382.5 484.8 649.5 858.1 1,092.1 1,364.1 Change in Working Capital (273.5) (16.6) (132.1) (68.4) (62.6) (90.4)
Shareholders Fund 391.9 494.3 659.9 868.5 1,102.5 1,374.4 Less: Tax Paid (20.8) (36.3) (63.0) (76.7) (86.1) (100.0)
Long Term Borrowings 0.0 0.0 0.0 0.0 0.0 0.0 Cash Flow from Operations 26.5 145.1 116.2 167.1 201.3 216.4
Deferred Tax Assets / Liabilities 23.8 24.1 22.7 22.7 22.7 22.7 Net Capital Expenditure (18.7) (28.5) (22.2) (153.3) (101.9) (112.1)
Other Long Term Liabilities 0.4 0.2 0.1 0.1 0.1 0.1 Change in Investments 0.7 (6.7) (2.2) 2.9 0.0 0.0
Long Term Trade Payables 0.0 0.0 0.0 0.0 0.0 0.0 Cash Flow from Investing (18.0) (35.2) (24.5) (150.4) (101.9) (112.1)
Long Term Provisions 2.9 3.3 3.6 3.6 3.6 3.6 Change in Borrowings 30.8 (73.6) 10.1 32.1 12.5 18.1
Total Liabilities 419.0 521.8 686.2 894.8 1,128.8 1,400.8 Less: Finance Cost (40.8) (33.2) (23.1) (7.4) (9.4) (10.8)
Net Block 207.2 225.3 230.7 384.0 485.8 597.9 Proceeds from Equity 0.0 0.0 0.0 0.0 0.0 0.0
Capital Work in Progress 2.5 0.7 2.9 0.0 0.0 0.0 Buyback of Shares 0.0 0.0 0.0 0.0 0.0 0.0
Intangible assets under development 0.0 0.0 0.0 0.0 0.0 0.0 Dividend Paid 0.0 (2.3) (15.5) (19.5) (21.9) (25.4)
Non Current Investments 0.0 0.0 0.0 0.0 0.0 0.0 Cash flow from Financing (10.0) (109.0) (28.5) 5.2 (18.7) (18.1)
Long Term Loans & Advances 2.7 1.3 0.0 0.0 0.0 0.0 Net Cash Flow (1.5) 0.9 63.3 21.9 80.7 86.2
Other Non Current Assets 5.9 13.7 13.2 13.2 14.5 15.9 Forex Effect 0.0 0.0 0.0 0.0 0.0 0.0
Net Current Assets 200.7 280.8 439.4 497.6 628.4 786.9 Opening Balance of Cash 0.1 6.1 7.0 70.3 92.2 172.9
Total Assets 419.0 521.8 686.2 894.8 1,128.8 1,400.8 Closing Balance of Cash 6.1 7.0 70.3 92.2 172.9 259.1
Source: Company Reports & Ventura Research

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offer to buy, purchase or subscribe to any securities, and neither this document nor anything contained herein shall form the basis of or be relied upon in connection
with any contract or commitment whatsoever. This document does not solicit any action based on the material contained herein. It is for the general information of the
clients / prospective clients of VSL. VSL will not treat recipients as clients by virtue of their receiving this report. It does not constitute a personal recommendation or
take into account the particular investment objectives, financial situations, or needs of clients / prospective clients. Similarly, this document does not have regard to
the specific investment objectives, financial situation/circumstances and the particular needs of any specific person who may receive this document. The securities
discussed in this report may not be suitable for all investors. The appropriateness of a particular investment or strategy will depend on an investor's individual
circumstances and objectives. Persons who may receive this document should consider and independently evaluate whether it is suitable for his/ her/their particular
circumstances and, if necessary, seek professional/financial advice. And such person shall be responsible for conducting his/her/their own investigation and analysis of
the information contained or referred to in this document and of evaluating the merits and risks involved in the securities forming the subject matter of this document.
The projections and forecasts described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties
and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections
and forecasts were based will not materialize or will vary significantly from actual results, and such variances will likely increase over time. All projections and forecasts
described in this report have been prepared solely by the authors of this report independently of the Company. These projections and forecasts were not prepared with
a view toward compliance with published guidelines or generally accepted accounting principles. No independent accountants have expressed an opinion or any other
form of assurance on these projections or forecasts. You should not regard the inclusion of the projections and forecasts described herein as a representation or
warranty by VSL, its associates, the authors of this report or any other person that these projections or forecasts or their underlying assumptions will be achieved. For
these reasons, you should only consider the projections and forecasts described in this report after carefully evaluating all of the information in this report, including
the assumptions underlying such projections and forecasts. The price and value of the investments referred to in this document/material and the income from them
may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for future performance. Future returns are not
guaranteed and a loss of original capital may occur. Actual results may differ materially from those set forth in projections. Forward-looking statements are not
predictions and may be subject to change without notice. We do not provide tax advice to our clients, and all investors are strongly advised to consult regarding any
potential investment. VSL, the RA involved in the preparation of this research report and its associates accept no liabilities for any loss or damage of any kind arising out
of the use of this report. This report/document has been prepared by VSL, based upon information available to the public and sources, believed to be reliable. No
representation or warranty, express or implied is made that it is accurate or complete. VSL has reviewed the report and, in so far as it includes current or historical
information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The opinions expressed in this document/material are subject
to change without notice and have no obligation to tell you when opinions or information in this report change. This report or recommendations or information
contained herein do/does not constitute or purport to constitute investment advice in publicly accessible media and should not be reproduced, transmitted or published
by the recipient. The report is for the use and consumption of the recipient only. This publication may not be distributed to the public used by the public media without
the express written consent of VSL. This report or any portion hereof may not be printed, sold or distributed without the written consent of VSL. This document does
not constitute an offer or invitation to subscribe for or purchase or deal in any securities and neither this document nor anything contained herein shall form the basis
of any contract or commitment whatsoever. This document is strictly confidential and is being furnished to you solely for your information, may not be distributed to
the press or other media and may not be reproduced or redistributed to any other person. The opinions and projections expressed herein are entirely those of the
author and are given as part of the normal research activity of VSL and are given as of this date and are subject to change without notice. Any opinion estimate or
projection herein constitutes a view as of the date of this report and there can be no assurance that future results or events will be consistent with any such opinions,
estimate or projection. This document has not been prepared by or in conjunction with or on behalf of or at the instigation of, or by arrangement with the company or
any of its directors or any other person. Information in this document must not be relied upon as having been authorized or approved by the company or its directors
or any other person. Any opinions and projections contained herein are entirely those of the authors. None of the company or its directors or any other person accepts
any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection therewith. The information contained herein
is not intended for publication or distribution or circulation in any manner whatsoever and any unauthorized reading, dissemination, distribution or copying of this
communication is prohibited unless otherwise expressly authorized. Please ensure that you have read “Risk Disclosure Document for Capital Market and Derivatives
Segments” as prescribed by Securities and Exchange Board of India before investing in Securities Market.

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23 | P a g e ( 2 5 t h J u n e 2 0 2 4 ) For any further query, please email us on research@venturasecurities.com