Company Update

July 12, 2012

Rating matrix
Rating Target Target Period Potential Upside : : : : Strong Buy | 420 12 months 37%

Bharti Airtel (BHATE)

| 306
WHATS CHANGED
PRICE TARGET .................................................................................................... Unchanged

Key Financials
| Crore Net Sales EBITDA Net Profit EPS (|) FY11 59,467 19,960.8 6,046.8 15.9 FY12 71,450.8 23,657.3 4,259.4 11.2 FY13E 81,268.0 26,931.7 5,609.6 14.8 FY14E 90,104.4 30,690.3 8,106.4 21.4

EPS (FY13E) ........................................................................................................ Unchanged EPS (FY14E) ........................................................................................................ Unchanged RATING ............................................................................. Changed from Buy to Strong Buy

Case for a Strong Buy

Bharti Airtel is the market leader with ~30.1% revenue market share and strongest fundamentals in the industry. Falling capex intensity, repayment of debt and reduced interest expense thereon, margin expansion in the African business and high quality subscribers (first takers of 3G) led uptake in 3G services would drive EPS to almost double by FY14E. Spectrum pricing and other regulatory overhang may remain in the near term but it seems to be already priced in. Bharti with strongest fundamentals in the industry would be the last man standing after the outcome of ongoing regulatory proceedings. With a favourable riskreward ratio, we rate the stock as STRONG BUY with a target price of | 420 per share. Strong fundamentals; EPS to nearly double by FY14 Bharti is a dominant market leader in the industry with revenue market share of 30.1% in the industry and a subscriber market share of 19.8% (24.3% on VLR basis) indicating strong quality of subscribers. Total 91.4% of subscribers are active as per the visitor location register (VLR) data as against 74.6% of the industry. Also, the African business has started showing meaningful improvement in EBITDA margins. We expect revenues to grow at a CAGR of 12.3% in FY12-14E on the back of an increase in traffic in both domestic as well as African business. The company is past its peak capex cycle and on a consolidated level would be generating free cash flow in excess of | 10000 crore each year, which would be used to repay the debt. Led by an improving operational performance and reduction in interest outgo on account of debt repayment, we expect EPS to grow 1.9x to | 21.4 by FY14E from the FY12 EPS of | 11.2.

Valuation summary
P/E Target P/E EV / EBITDA P/BV RoNW (%) RoCE (%) FY11 19.2 26.4 8.8 2.4 12.4 8.6 FY12 27.3 37.5 7.7 2.3 8.4 8.4 FY13E 20.7 28.4 6.6 2.1 10.1 10.1 FY14E 14.3 19.7 5.4 1.8 12.8 12.3

Stock data
Market Capitalization (| Crore) Total Debt (FY12) (| Crore) Cash and Investments (FY12) (| Crore) EV (| Crore) 52 week H/L Equity capital Face value MF Holding (%) FII Holding (%) 116,286.2 69,023.2 3,843.2 181,466.2 441 / 282 | 1898.2 Crore |5 8.2 16.9

Price movement
6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 Jul-11 Oct-11 Jan-12 Apr-12 Nifty (L.H.S) Price (R.H.S) 500 450 400 350 300 250 200 150 100 50 Jul-12

Valuation
Using the DCF methodology for valuing Bharti and assuming a revenue CAGR of 7.9% in FY12-20E and a terminal growth of 3.0% thereon, we have arrived at a target price of | 420. The risk reward seems to be favourable at this point. We rate the stock as STRONG BUY.
Exhibit 1: Key Financials
(Year-end March) Net Sales (| crore) EBITDA (| crore) Net Profit (| crore) EPS (|) P/E (x) Price / Book (x) EV/EBITDA (x) RoCE (%) RoE (%) FY10 39,615.0 16,026.6 9,102.5 24.0 12.8 2.8 7.2 19.7 22.0 FY11 59,467.2 19,960.8 6,046.8 15.9 19.2 2.4 8.8 8.6 12.4 FY12 71,450.8 23,657.3 4,259.4 11.2 27.3 2.3 7.7 8.4 8.4 FY13E 81,268.0 26,931.7 5,609.6 14.8 20.7 2.1 6.6 10.1 10.1 FY14E 90,104.4 30,690.3 8,106.4 21.4 14.3 1.8 5.4 12.3 12.8

Analysts name
Karan Mittal karan.mittal@icicisecurities.com Anil Shenoy anil.shenoy@icicisecurities.com

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Dominant position Bharti is a dominant market leader in the industry with revenue market share of 30.1% in the industry and subscriber market share of 19.8% (24.3% on VLR basis) indicating strong quality of subscribers. Total 91.4% of subscribers are active as per the visitor location register (VLR) data as against 74.6% of the industry. These high-end subscribers will be the first to move on to 3G services. Consequently, the company also boasts of highest 3G subscribers in the country with ~8 million subscribers. The company also has the highest ARPU and MoU among listed players at | 189 and 431 minutes, respectively.
Exhibit 2: Strong market leader
35.0 33.0 31.0 29.0 27.0 25.0 23.0 21.0 19.0 17.0 15.0 32.7 33.9 33.3 33.1 33.3 32.7 32.8 33.3 32.2 32.0 31.1 31.8 30.9 30.5 30.1

31.2

24.6 25.0 25.1 24.3 24.3 23.7 23.0

22.1 21.7 21.0 20.4 20.1 20.0 19.9 19.8 19.8

Q109

Q309

Q110

Q310

Q111

Q311

Q112

Q312

Subscriber Market Share

Revenue Market Share

Source: Company, ICICIdirect.com Research

Exhibit 3: Key metrics - Assumptions

Bharti Airtel Subscribers ARPU MOU ARPM Traffic Unit millions | minutes Paisa Billion minutes FY11 162 201 456 44.1 792.1 FY12 181 188 431 43.6 888.5 FY13 204 191 440 43.3 1018.2 FY14 221 193 449 43.1 1146.5

Source: Company, ICICIdirect.com Research

Though the company has been marginally losing its revenue market share with the entrance of new operators in the industry, the market share still remains at a strong level of above 30%. With imminent consolidation in the industry, we expect Bharti to retain its market share subsequently. Going forward, though the ARPM would be pressurised by the competition among incumbents, we expect MoU and ARPU to improve significantly. This will drive revenues, going forward. We expect the Indian mobile business to grow at a CAGR of 12.9% in FY12-14E led by 13.6% growth in total minutes on the network and a marginal decline in the ARPM to 43 paisa. African operations to drive growth subsequently Though the improvement in African operations has been lower than expectations, the trend seems to be reversing in the last two quarters.

ICICI Securities Ltd | Retail Equity Research

Page 2

Exhibit 4: Improvement in African EBITDA margin

Financials of Africa Revenue EBITDA EBITDA Margin Units $ mn $ mn % Q1FY12 978.7 261.2 26.7 Q2FY12 1,030.2 270.4 26.2 Q3FY12 1,057.2 282.1 26.7 Q4FY12 1,071.0 297.9 27.8

Source: Company, ICICIdirect.com Research

While the ARPM in the African business is expected to reduce, going forward, owing to the competition in African markets, we expect the growth in MoU and the subscriber base to more than cover up for the slump in ARPM. We expect African revenues to grow at a CAGR of 15.5% in FY12-14E from | 19826.7 crore to | 26470.8 crore on the back of an increase in the subscriber base from 53.1 million to 70.0 million and growth in MoU from 123 to 134.
Exhibit 5: KPI assumptions
Key Metrics for Africa Subscriber base ARPU MoU ARPM Units Millions US$ Min US FY11 44.2 5.4 122 6.2 FY12 53.1 7.1 123 5.8 FY13E 61.6 6.8 126 5.4 FY14E 70.0 6.7 134 5.0

Source: Company, ICICIdirect.com Research

Exhibit 6: African operations - Revenue & EBITDA growth

30,000 25,000 20,000 | crore 15,000 10,000 5,000 0 13,083.4 FY11 19,826.7 FY12 Revenue 23,755.8 FY13 EBITDA margins 26,470.8 FY14 23.9 26.7 27.6 27.9 29 28 27 26 25 24 23 22 21 %

Source: Company, ICICIdirect.com Research

EPS to almost double by FY14E We expect revenues to post a CAGR of 12.3% from FY12-14E owing to strong KPIs and its leadership position in the domestic market. The EBITDA margin is expected to improve from 33.1% in FY12 to 34.1% in FY14 due to its operating leverage. The company is past its peak capex cycle. On a consolidated level, Bharti would be generating free cash flow in excess of | 10000 crore each year, which would be used to repay the debt. Led by an improving operational performance and reduction in interest outgo on account of debt repayment, we expect the EPS to grow 1.9x to | 21.4 by FY14E from FY12 EPS of | 11.2.

ICICI Securities Ltd | Retail Equity Research

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Exhibit 7: Improving revenue & EBITDA trend

100000.0 90000.0 80000.0 70000.0 60000.0 50000.0 40000.0 30000.0 20000.0 10000.0 0.0 34.1 33.6 33.1 33.1 34.2 34.0 33.8 33.6 33.4 33.2 33.0 32.8 32.6 32.4

Revenues are expected to grow at a CAGR of 12.3% in FY12-14E from | 71451 crore to | 90104 crore while the EBITDA margin is expected to increase from 33.1% to 34.1%

59467 19961 FY11

71451 23657 FY12 Revenue EBITDA

81268 26932 FY13

90104 30690 FY14

EBITDA Margins

Source: Company, ICICIdirect.com Research

Exhibit 8: PAT to improve on reduced interest outgo

9000 8000 7000 6000 5000 4000 3000 2000 1000 0 8106.4 6046.8 4259.4 2181.3 4348.6 5609.6 70000.0 60000.0 50000.0 40000.0 30000.0 3592.5 50681.9 FY14 PAT 20000.0 10000.0 0.0

Net debt is expected to reduce from | 65180.0 crore in interest outgo from | 3818.5 crore to | 3592.5 crore. PAT would grow at a CAGR of 38.0% from | 4259.4 crore to | 8106.4 crore

| crore

FY12 to | 50681.9 crore in FY14 leading to a reduction in

3818.5 65180.0 FY12 Net Debt

60090.9 FY11

60825.7 FY13 Interest

Source: Company, ICICIdirect.com Research

Exhibit 9: Capex intensity to decline

20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 30.0 25.3 19.7 18,075.9 16.6 15,000.0 25.0 20.0 15.0 16,000.0 10.0 5.0 0.0 FY12E Capex FY13E Capex Intensity FY14E %

The company is past its peak capex cycle and is expected to witness a decline in capex intensity from 25.3% in FY12 to 16.6% in FY14. The absolute capex is expected to decrease from | 18075.9 crore to ~| 15000 crore

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

| crore

Page 4

Regulatory overhang remains The industry has been marred by regulatory issues since 2010 when the first set of recommendations were issued by Trai for the new telecom policy. In the latest set of recommendations, several issues ranging from spectrum refarming, one time spectrum charges and high reserve prices for auction to spectrum liberalisation have been raised. Most of these issues have been widely opposed by industry participants. While several new operators like DB Etisalat, STel and Loop have already decided to shut shop after the Supreme Court cancelled their licenses, Uninor and SSTL have announced that they will not participate in auctions if the recommendation on high reserve price is accepted by the government. We believe even incumbents would shy away from participating if reserve prices are not rationalised. However, some of the media reports suggest that the EGoM may relax the recommendations considerably to aid industry growth. To factor in the financial impact on Bharti Airtel, we have assigned a 25% probability to the reserve price being kept at current levels, 50% probability to it being lowered by 50% and 25% probability to it being cut by 75%. Based on our analysis, the company may have to shell out ~ | 30700 crore (at the base price) as one-time spectrum fee and for retaining its spectrum as and when it comes up for renewal.
Exhibit 10: Estimated payout
(| Crore) Pan India Spectrum Fees (per MHz) Current At 50% Discount 900 MHz 1800 MHz 900 MHz 1800 MHz 7244.4 3622.2 3622.2 1811.1 Payout for Bharti Airtel Current At 50% Discount 11404.4 5702.2 Equal Equal 5068.8 2534.4 Probability Probability 2518.5 1259.2 6330.6 48253.1 54583.7 25% 3165.3 24126.6 27291.8 50% 30703.3 At 75% Discount 900 MHz 1800 MHz 1811.1 905.5 At 75% Discount 2851.1 Equal 1267.2 Probability 629.6 1582.6 12063.3 13645.9 25%

Entire Spectrum Above 4.4 MHz Above 6.2 MHz Estimated Payout on one time spectrum fees NPV of spectrum retention charges Total Payout Assigned Probability Estimated Payout

Source: Company, ICICIdirect.com Research

but Bharti Airtel would remain the last man standing We believe in such a scenario the company would raise tariffs to support high capital expenditure. We assume the ARPM will go up to 60 paisa, which would result in an MoU decline of about 25% from 431 currently to 323. Moreover, the tariff increase would also be supported by reduced competition since post these auctions most of the operators who were awarded licenses in 2008 would cease to exist.
Exhibit 11: Estimates after considering the payouts and increase in prices
(| Crore) Revenue EBITDA Depreciation Interest PBT PAT EPS (|) FY13 Current Estimates 81268.0 26931.7 14703.8 4348.6 7999.3 5609.6 14.8 After Payout 81161.7 29230.7 15453.8 6271.5 7545.4 5291.4 13.9 FY14 Current Estimates 90104.4 30690.3 15914.0 3592.5 11303.7 8106.4 21.4 After Payout 90368.1 33350.7 17414.0 5677.5 10305.4 7390.5 19.5

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

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Valuation
We believe at current valuations the stock looks attractive as most of the negatives seem to be already priced in. The stock has been subdued since the first set of recommendations was released in 2010. We believe once the auctions are conducted and there is more clarity on regulatory policy coupled with reduced competition, the company would get rerated. Currently, the stock is trading at a P/E of 14.3x, which is way below the last five years average PE of 21.2. We believe that as regulatory clarity starts emerging, the stock will start inching towards its long term average.
Exhibit 12: One year forward P/E chart
900 800 700 600 500 400 300 200 100 0 Apr-08 Price Sep-08 CLOSE Feb-09 Jul-09 PER 35 Dec-09 May-10 PER 29 Oct-10 PER 23 Mar-11 Aug-11 PER 17 Jan-12 PER 11

Source: Company, ICICIdirect.com Research

Using the DCF methodology for valuing Bharti and assuming a revenue CAGR of 7.9% in FY12-20E and a terminal growth of 3.0% thereon, we have arrived at a target price of | 420. The risk reward seems to be favourable at current valuations. We rate the stock as STRONG BUY.
Exhibit 13: DCF valuation
| in Crore
WACC Revenue CAGR over FY12-20E Present Value of Cash Flow till FY20E Terminal Growth Present Value of terminal cash flow PV of firm Less: Current Debt Total present value of the Equity Number of Equity Shares outstanding DCF - Target price (|) 10.7% 7.9% 90,105.9 3.0% 138,413.3 228,519.2 69,023.2 159,496.0 379.6 420

Source: Company, ICICIdirect.com Research

Exhibit 14: Valuation table

Sales (| cr) 59467.2 71450.8 81268.0 90104.4 Growth (%) 7.2 20.2 13.7 10.9 EPS (|) 15.9 11.2 14.8 21.4 Growth (%) 7.5 -29.6 31.7 44.5 PE (x) 19.2 27.3 20.7 14.3 EV/EBITDA (x) 8.8 7.7 6.6 5.4 RoNW (%) 12.4 8.4 10.1 12.8 RoCE (%) 8.6 8.4 10.1 12.3

FY11 FY12 FY13E FY14E

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 6

Financial summary
Profit and loss statement
(Year-end March) Total operating Income Growth (%) Employee Expenses Marketing Expenses Access Charges Network Operating License Fee Other Costs Total Operating Expenditure EBITDA Growth (%) Depreciation Interest Other Income Non Operating Expenses PBT MI / Profit from associates Total Tax PAT Growth (%) EPS (|) FY11 59,467.2 50.1 3,280.3 10,780.7 7,476.4 12,753.1 5,173.0 42.9 39,506.4 19,960.8 24.5 10,206.6 2,181.3 136.3 23.6 7,685.6 -140.2 1,779.0 6,046.8 -33.6 15.9 FY12 71,450.8 20.2 3,515.9 12,630.9 9,736.1 15,759.8 6,109.9 40.9 47,793.5 23,657.3 18.5 13,368.1 3,818.5 55.0 6,525.7 6.1 2,260.2 4,259.4 -29.6 11.2 FY13E 81,268.0 13.7 3,855.9 14,057.8 11,485.0 17,666.6 6,943.7 327.3 54,336.3 26,931.7 13.8 14,703.8 4,348.6 120.0 7,999.3 -10.1 2,399.8 5,609.6 31.7 14.8 (| Crore) FY14E 90,104.4 10.9 4,175.5 15,450.2 12,711.0 18,995.2 7,718.6 363.6 59,414.1 30,690.3 14.0 15,914.0 3,592.5 120.0 11,303.7 -24.2 3,221.6 8,106.4 44.5 21.4

Cash flow statement

(Year-end March) Profit after Tax Add: Depreciation (Inc)/dec in Current Assets Inc/(dec) in CL and Provisions Others CF from operating activities (Inc)/dec in Investments (Inc)/dec in Fixed Assets Others CF from investing activities Issue/(Buy back) of Equity Inc/(dec) in loan funds Dividend paid & dividend tax Inc/(dec) in Sec. premium Others CF from financing activities Net Cash flow Opening Cash Closing Cash FY11 6,046.8 10,206.6 -4,418.4 15,519.6 2,181.3 29,535.9 2,601.6 -93,109.7 6,142.1 -84,365.9 0.0 55,209.0 -442.8 0.0 -408.0 54,358.2 -471.9 1,429.4 957.5 FY12E 4,259.4 13,368.1 -1,337.4 1,032.0 3,818.5 21,140.5 -2,817.0 -18,075.9 -294.2 -21,187.1 0.0 7,352.4 -444.2 0.0 -5,789.2 1,119.0 1,072.5 957.5 2,030.0 FY13E 5,609.6 14,703.8 -667.7 862.2 4,348.6 24,856.5 0.0 -16,000.0 290.7 -15,709.3 0.0 -6,000.0 -444.2 0.0 -4,348.6 -10,792.8 -1,645.7 2,030.0 384.3 (| Crore) FY14E 8,106.4 15,914.0 -426.9 2,685.3 3,592.5 29,871.3 0.0 -15,000.0 -690.7 -15,690.7 0.0 -9,000.0 -444.2 0.0 -3,592.5 -13,036.7 1,143.8 384.3 1,528.1

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

Balance sheet
(Year-end March) Liabilities Equity Capital Reserve and Surplus Total Shareholders funds Total Debt Deferred Tax Liability Others Total Liabilities Assets Gross Block Less: Acc Depreciation Net Block Investments Inventory Debtors Loans and Advances Other Current Assets Cash Total Current Assets Creditors Provisions Other Current Liabilities Total Current Liabilities Net Current Assets Others Assets Application of Funds FY11 1,898.8 46,868.0 48,766.8 61,670.8 1,248.7 6,272.6 117,958.9 FY12 1,898.8 48,712.5 50,611.3 69,023.2 1,162.1 6,685.5 127,482.1 FY13E 1,898.8 53,877.9 55,776.7 63,023.2 1,162.1 6,675.4 126,637.4 (| Crore) FY14E 1,898.8 61,540.1 63,438.9 54,023.2 1,162.1 6,651.2 125,275.4

Key ratios
(Year-end March) Per share data (|) EPS Cash EPS BV DPS Cash Per Share Operating Ratios EBITDA Margin (%) PBT Margin (%) PAT Margin (%) Inventory days Debtor days Creditor days Return Ratios (%) RoE RoCE RoIC Valuation Ratios (x) P/E EV / EBITDA EV / Net Sales Market Cap / Sales Price to Book Value Solvency Ratios Debt/EBITDA Debt / Equity Current Ratio Quick Ratio FY11 15.9 42.8 128.5 1.0 2.5 33.6 12.9 10.2 0.8 21.1 113.2 12.4 8.6 8.2 19.2 8.8 3.0 2.0 2.4 3.1 1.3 0.4 0.3 FY12E 11.2 46.4 133.3 1.0 5.3 33.1 9.1 6.0 0.9 30.3 120.6 8.4 8.4 8.7 27.3 7.7 2.5 1.6 2.3 2.9 1.4 0.4 0.4 FY13E 14.8 53.5 146.9 1.0 1.0 33.1 9.8 6.9 0.7 29.5 107.0 10.1 10.1 10.2 20.7 6.6 2.2 1.4 2.1 2.3 1.1 0.4 0.4 FY14E 21.4 63.3 167.1 1.0 4.0 34.1 12.5 9.0 0.7 27.5 101.0 12.8 12.3 12.7 14.3 5.4 1.9 1.3 1.8 1.8 0.9 0.4 0.4

160,391.0 31,516.7 128,874.3 1,415.4 213.9 5,492.9 3,050.4 870.6 957.5 10,585.3 23,968.4 118.0 4,461.1 28,547.5 -17,962.2 5,631.4 117,958.9

178,466.9 44,884.8 133,582.1 3,524.2 130.8 6,373.5 3,262.1 1,198.8 2,030.0 12,995.1 23,265.0 129.0 6,185.5 29,579.5 -16,584.3 6,960.1 127,482.1

194,466.9 59,588.6 134,878.3 3,524.2 158.6 6,763.0 3,415.1 1,296.1 384.3 12,017.1 24,382.5 135.2 5,923.9 30,441.7 -18,424.5 6,659.4 126,637.4

209,466.9 75,502.6 133,964.3 3,524.2 162.3 6,814.4 3,613.0 1,470.1 1,528.1 13,587.9 25,483.4 141.3 7,502.2 33,126.9 -19,539.0 7,325.9 125,275.4

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

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ICICIdirect.com coverage universe (Telecom)

Sector / Company Telecom Bharti Airtel (BHATE) Idea Cellular (IDECEL) OnMobile (ONMGLO) Reliance Comm. (RELCOM) TTML (HUGTEL) Tulip Telecom (TULITS) CMP (|) 306 83 38 69 14 117 TP(|) Rating 420 85 UR 67 12 96 M Cap (| Cr) EPS (|) P/E (x) EV/EBITDA (x) RoCE (%) RoE (%) FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E 11.2 2.2 7.2 4.5 NM 21.4 14.8 3.9 8.0 2.5 NM 13.8 21.4 27.3 6.0 37.7 9.2 5.3 4.4 15.3 NM NM 15.1 5.5 20.7 21.2 4.7 27.9 NM 8.5 14.3 7.7 13.8 7.9 4.2 2.3 15.6 9.0 NM 15.3 7.8 4.1 6.6 6.0 1.0 8.2 13.8 4.7 5.4 8.4 4.8 8.0 0.5 5.8 7.3 2.3 57.4 NM 4.6 16.3 10.1 11.2 10.0 2.7 0.4 13.4 12.3 8.4 14.4 5.6 10.8 9.4 3.3 2.9 NM NM 13.3 21.3 10.1 9.0 9.6 1.6 NM 12.3 12.8 12.1 10.0 2.8 NM 12.0

Buy 116,286 Hold 27,268 UR 438 Hold 14,221 Sell 2,647 Sell 1,698

Source: Company, ICICIdirect.com Research

Exhibit 15: Recommendation History

500 450 400 350 300 250 200 150 100 50 0 Jul-11 Sep-11 Oct-11 Dec-11 Price Jan-12 Mar-12 Target Price Apr-12 Jun-12 Jul-12

Source: Reuters, ICICIdirect.com Research

Exhibit 16: Recent Releases

Date 4-Aug-11 5-Oct-11 4-Nov-11 6-Jan-12 9-Feb-12 4-Apr-12 3-May-12 5-Jul-12 Event Q1FY12 Result Update Q2FY12 Result Preview Q2FY12 Result Update Q3FY12 Result Preview Q3FY12 Result Update Q4FY12 Result Preview Q4FY12 Result Update Q1FY13 Result Preview CMP 422 370 398 344 350 337 318 327 Target Price 450 450 450 450 450 450 420 420 Rating HOLD BUY BUY BUY BUY BUY BUY BUY

Source: ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 8

RATING RATIONALE

ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: > 10%/ 15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more;

Pankaj Pandey

Head Research ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) Mumbai 400 093 research@icicidirect.com

pankaj.pandey@icicisecurities.com

ANALYST CERTIFICATION
We /I, Karan Mittal MBA, Anil Shenoy MBA research analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our personal views about any and all of the subject issuer(s) or securities. 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. Analysts aren't registered as research analysts by FINRA and might not be an associated person of the ICICI Securities Inc.

Disclosures:
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