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April 17, 2018 Analyst: Rohan Mandora [email protected] (+91-9737065666)/Ankit Choudhary [email protected] Page 1 of 13
Before reading this report, you must refer to the disclaimer on the last page.
DCB Bank Absolute : ADD
Relative : EQUALWEIGHT
4QFY18Results: Est. (↑), Target (↑), Rating () Regular Coverage 9.1% ATR in 11Months
Strong quarter; retain ADD on limited upside Financials
© 2018Equirus All rights reserved Rating Information
Price (Rs) 190
Target Price (Rs) 205
Target Date 31st Mar’19
Target Set On 16thApril’18
Implied yrs of growth (ERE) 20
Fair Value (ERE) 202
Fair Value (DDM) NA
Ind Benchmark BANKEX
Model Portfolio Position -
Stock Information
Market Cap (Rs mn) 58,582
Free Float (%) 85.00 %
52 Wk H/L (Rs) 213/154.9
Avg Daily Volume (1yr) 2,025,605
Avg Daily Value (1yr) 375
Equity Cap (Rs Mn) 3,081
Face Value (Rs) 10
Bloomberg Code DCBB IN
Ownership Recent 3M 12M %
Promoters 15.0 % 0.0 % -1.2 %
DII 24.9 % 1.1 % 7.9 %
FII 21.3 % 0.1 % -2.2 %
Public 38.7 % -0.7 % -4.5 %
Price % 1M% 3M% 12M%
Absolute 16.5 % -1.9 % 5.8 %
Vs Industry 13.7 % 1.4 % -9.0 %
CUB 3.1 % 3.2 % 31.6 %
SIB 0.2 % -21.0 % 11.8 %
Consolidated Quarterly EPS forecast
Rs/Share 1Q 2Q 3Q 4Q
EPS (FY18) 2.2 1.9 1.9 2.2
EPS (FY19E) 2.4 2.5 2.7 2.8
DCB Bank (DCBB) posted a strong all-round 4QFY18 performance with a ~22% yoy PAT
growth (Rs 642mn, EE Rs 607mn), 29% yoy loan growth and better asset quality
(GNPA/NNPA improving to 1.8%/0.7% on lower slippages at 1.7%). While core fee income
grew by a strong 40% yoy, NIM (calc.) contracted 8bps qoq. In FY19E, we expect (i) DCBB
to maintain healthy loan growth of ~24% yoy as it gains incremental business from SOE
banks, (ii) NIMs to moderate further, in line with the trend seen in 2HFY18 (FY19E/FY20E
calc. NIM at 3.7%/3.6%), (iii) fee income to be marginally ahead of assets growth driven
by higher cross-selling and (iv) stable asset quality given a granular loan book. We raise
our FY19E/FY20E PAT by 6%/8% as we upgrade our fee estimates. Retain ADD with an
ERoE-based Mar’19 TP of Rs 205 (Rs 196 earlier) set at a 2.2x Mar’19 ABV of Rs 92. Core fee income growth robust, pricing pressure hurts NIM: Non-interest income
jumped 34% yoy driven by bancassurance, fx products for retail, SME/retail trade
products, and sale of PSL certificates. NII grew ~20% yoy to Rs 2.64bn. Pricing pressure
pulled down NIMs by ~31bps in 4QFY18 vs. 2QFY18; we expect NIMs to moderate
further in FY19E as competition intensifies from SFBs and NBFCs. Opex increased by
23% yoy in 4QFY18(FY18: 24%). However, with management guidance on the pace of
branch addition moderating to ~15/year in both FY19E/FY20E, we expect the C/I ratio
to improve to 57.6%/55.5%. We build in a ~18bps/9bps contraction in FY19E/FY20E
NIMs and a 25%/22% growth in fee income. Advances up ~29% yoy, cross Rs 200bn: DCBB’s loan growth was driven by CV/
corporate banking segments while the share of mortgages declined to 40% vs. 42% in
3QFY18 as the foreclosure rate was ~30-40% higher than last year. ~70% of current
advances with ticket sizes below Rs 30mn and management guides to keep the loan
book mix remaining broadly similar with a sustained focus on granular loans. Deposits
were up 24.5% yoy with the CASA ratio declining 134bps qoq to 24.3%. We build in
FY19E/FY20E loan growth of 24%/24%, but feel DCBB would need to raise capital in
FY20E to support growth. GNPL/NNPL ratios improve to 1.8%/0.7%: Overall, fresh slippages moderated to 1.7%
vs. 2.3% qoq. NPAs in gold loans/mortgages inched up to 2.6%/1.7% vs. 1.9%/1.6% in
3Q. GNPA ratios moderated by more than 20bps qoq in the corporate (2.4%), SME
(1.3%), CV (2.5%) and AIB (1.7%) segments. One NPA restructured loan worth Rs 90mn
was upgraded to standard restructured. Upgrades and recoveries were healthy at
Rs 667mn (Rs 669mn of total reduction in NPAs). We expect asset quality to remain
robust and considerably better that the systemic average. Risks: (1) A sharp increase in slippages, (2) other FIs offering unsecured loans and
top-up loans, leading to higher competition, and (3) a slowdown in the growth rate of
mortgage loans.
Revised Estimates % Change
FY19E FY20E FY19E FY20E
NII 11,778 14,037 -0.7% -1.9%
Provisions 1,726 2,128 9.2% 8.4%
PAT 3,195 4,048 6.1% 7.9%
EPS (Rs.) 10.4 13.1 5.8% 7.6%
Advances 252,175 312,697 2.0% 1.2%
Deposits 297,685 369,129 11.8% 13.7%
Consolidated Financials
Rs. Mn YE Mar FY18A FY19E FY20E FY21E
NII 9,954 11,778 14,037 17,221
Other Income 3,103 3,878 4,732 5,631
Total Income 13,057 15,656 18,769 22,852
Operating Exp 14,084 16,822 19,429 22,454
PPoP 5,250 6,641 8,355 10,812
Provisions 1,388 1,726 2,128 2,778
PAT 2,453 3,195 4,048 5,222
Loan and Advances
203,367 252,175 312,697 384,617
Deposits 240,069 297,685 369,129 457,721
Net Worth 28,078 30,917 34,501 39,259
NIM 3.8 % 3.7 % 3.6 % 3.6 %
Prov/Avg Loans 0.77 % 0.76 % 0.75 % 0.80 %
Rs Per Share FY18A FY19E FY20E FY21E
EPS 8.3 10.4 13.1 16.9
Adjusted EPS 8.3 10.4 13.1 16.9
Book Value 91.1 100.4 112.0 127.4
Adjusted BVPS 86.4 92.7 102.0 115.5
DPS 0.8 1.0 1.3 1.3
P/E (x) 23.0 18.3 14.5 11.2
Adj P/B (x) 2.2 2.1 1.9 1.6
ROE (%) 10.3 % 10.8% 12.4% 14.2%
RoA (%) 0.9 % 1.0% 1.0% 1.1%
DCB Bank Absolute – ADD Relative – EQUALWEIGHT 9.1% ATR in 11 Months
April 17, 2018 Analyst: Rohan Mandora [email protected] (+91-9737065666)/Ankit Choudhary [email protected] Page 2 of 13
Quarterly performance
Particulars
%Variation
Profit & Loss (Rs mn) 4QFY18 4QFY18E 4QFY17 3QFY18 4QFY18E 4QFY17 3QFY18
Net interest income (NII) 2,637 2,574 2,203 2,505 2.4% 19.7% 5.3%
Other income 849 771 633 749 10.1% 34.0% 13.2%
Total income 3,486 3,345 2,836 3,254 4.2% 22.9% 7.1%
Operating expenses 2,070 2,086 1,682 2,029 -0.8% 23.0% 2.0%
- Staff expenses 1,017 993 815 970 2.4% 24.7% 4.8%
- Other expenses 1,053 1,093 867 1,059 -3.7% 21.5% -0.5%
Operating profit 1,416 1,259 1,153 1,225 12.4% 22.8% 15.5%
Total provisions 388 381 339 343 1.8% 14.4% 13.3%
Profit before tax 1,028 878 814 883 17.1% 26.2% 16.4%
Tax 386 271 286 313 42.3% 35.1% 23.3%
Profit after tax 642 607 529 570 5.8% 21.5% 12.6%
Balance sheet (Rs mn) 4QFY18 4QFY18E 4QFY17 3QFY18 % change vsEst % change y-o-y % change q-o-q
Deposits 240,069 221,826 192,892 212,959 8.2% 24.5% 12.7%
Advances 203,367 197,720 158,176 185,952 2.9% 28.6% 9.4%
Investment 62,190 57,255 58,179 57,136
6.9% 8.8%
Gross NPL (Rs mn) 3,690
2,542 3,545
45.2% 4.1%
Net NPL (Rs mn) 1,467
1,184 1,615
23.9% -9.1%
Ratios (%) 4QFY18 4QFY18E 4QFY17 3QFY18
bp change y-o-y bp change q-o-q
Profitability ratios - Reported
Yield on Advances 11.4%
12.0% 11.3%
-62 16
Cost of Funds 6.3%
6.5% 6.4%
-20 -14
NIM 4.2%
4.2% 4.1%
-1 4
RoaA 0.9%
0.9% 0.9%
1 5
RoaE 10.2%
10.0% 9.3%
25 91
Asset Quality
Gross NPL ratio 1.79%
1.6% 1.89%
20 -10
Net NPL ratio 0.72%
0.8% 0.87%
-7 -15
Coverage ratio 75.7%
73.8% 73.4%
192 236
Business & Other Ratios
CASA 24.3%
24.3% 25.7%
2 -134
Cost-income ratio 59.4%
59.3% 62.3%
6 -296
Non int. inc / total income 24.3%
22.3% 23.0%
202 132
Credit deposit ratio 84.7%
82.0% 87.3%
271 -261
CAR 16.5%
13.8% 15.8%
271 70
Tier-I 12.7%
11.9% 12.5%
85 18
Source: Company, Equirus Securities
DCB Bank Absolute – ADD Relative – EQUALWEIGHT 9.1% ATR in 11 Months
April 17, 2018 Analyst: Rohan Mandora [email protected] (+91-9737065666)/Ankit Choudhary [email protected] Page 3 of 13
Exhibit 1:Provisioning coverage (excluding technical write-off) stood at 60.2%
Source: Company, Equirus Research
Exhibit 2:GNPL ratio inched up qoq for mortgages & gold loans and declined for others
Source: Company, Equirus Research
Exhibit 3: Share of mortgages slid to 40% (3Q: 42%); management expects to maintain a similar loan book going ahead
Source: Company, Equirus Research
Exhibit 4: NIMs for FY18 stood 4.16% vs. 4.04% in FY17
Source: Company, Equirus Research
0%
10%
20%
30%
40%
50%
60%
70%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
1Q
FY15
2Q
FY15
3Q
FY15
4Q
FY15
1Q
FY16
2Q
FY16
3Q
FY16
4Q
FY16
1Q
FY17
2Q
FY17
3Q
FY17
4Q
FY17
1Q
FY18
2Q
FY18
3Q
FY18
4Q
FY18
GNPA NNPA PCR (Computed) - RHS
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
Corporate SME + MSME Mortgages CV AIB Gold Loan Others
4QFY17 3QFY18 4QFY18
40.0%
17.0%
12.0% 2.0%
6.0%
18.0%
3.0% 2.0% Mortgages
Corporate Banking
SME + MSME
Gold loan
CV
AIIB
Construction Finance
Others
3.5%
3.7%
3.9%
4.1%
4.3%
4.5%
4.0%
7.0%
10.0%
13.0%
1Q
FY15
2Q
FY15
3Q
FY15
4Q
FY15
1Q
FY16
2Q
FY16
3Q
FY16
4Q
FY16
1Q
FY17
2Q
FY17
3Q
FY17
4Q
FY17
1Q
FY18
2Q
FY18
3Q
FY18
4Q
FY18
Yield On Advances Cost of Fund NIM - RHS
DCB Bank Absolute – ADD Relative – EQUALWEIGHT 9.1% ATR in 11 Months
April 17, 2018 Analyst: Rohan Mandora [email protected] (+91-9737065666)/Ankit Choudhary [email protected] Page 4 of 13
Exhibit 5: CASA ratio stood at 24.3%
Source: Company, Equirus Research
Exhibit 6: Slippage ratio moderated qoq to 1.7%
NPA Movement 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18
Opening Balance 1,492 1,688 1,792 1,861 2,064 2,243 2,349 1,974 2,313 2,554 2,279 2,542 2,853 3,158 3,545
Fresh Slippages 418 207 846 572 621 549 502 578 500 793 742 856 775 1,031 805
Addition to Existing NPAs 0 16 12 1 1 2 7 1 1 - 4 31 4 7 9
Deduction 222 119 789 370 443 445 884 240 260 1,068 483 576 474 651 669
Closing Balance 1,688 1,792 1,861 2,064 2,243 2,349 1,974 2,313 2,554 2,279 2,542 2,853 3,158 3,545 3,690
Slippage Ratio 2.0% 1.0% 3.4% 2.2% 2.3% 1.9% 1.7% 1.8% 1.4% 2.2% 2.0% 2.2% 1.9% 2.3% 1.7% Source: Company, Equirus Research
25.4%
23.4%
23.0% 23.4%
23.1%
24.3%
26.9%
24.3%
21%
23%
25%
27%
29%
1Q
FY15
2Q
FY15
3Q
FY15
4Q
FY15
1Q
FY16
2Q
FY16
3Q
FY16
4Q
FY16
1Q
FY17
2Q
FY17
3Q
FY17
4Q
FY17
1Q
FY18
2Q
FY18
3Q
FY18
4Q
FY18
CASA Ratio
DCB Bank Absolute – ADD Relative – EQUALWEIGHT 9.1% ATR in 11 Months
April 17, 2018 Analyst: Rohan Mandora [email protected] (+91-9737065666)/Ankit Choudhary [email protected] Page 5 of 13
Earnings call takeaways
Business Update
Key drivers of growth in fee income: Bancassurance, fx products for retail,
SME/retail trade products, sales of PSL certificates.
So far, the bank has trained more than 1,000 employees who are now certified for
cross-selling various insurance/MF products.
DCBB has not purchased any loan portfolio during FY18. Adjusting for rundown in
earlier buyout pools, organic loan growth is ~30-31%.
Management is not looking to grow corporate banking aggressively, with the segment
likely to constitute ~15-20% of its overall loan book.
While the focus would remain on mortgages, recent changes in mortgage credit
underwriting are leading to slower growth in the segment.
DCBB is offering 2W/car loans only to existing customers, with no dedicated staff to
market these products.
The foreclosure rate of mortgage loans has gone up by 30-40% vis-à-vis last year.
On retail term deposits, DCBB is seeing good traction in Suraksha FDs which offers
free life insurance cover up to the deposit amount with a cap of Rs 5mn.
Asset Quality
One NPA restructured LRD account worth Rs 90mn was upgraded to standard
restructured as the borrower had been regular on paying two loans. A delay in one of
the loans was due to cancellation of a lease agreement.
Increase in CV NPAs is due to the impact of GST and industry-specific issues.
Strong controls are in place for gold loans. Management is confident of no
frauds/operational losses in gold loans.
Guidances
FY19 exit quarter targets were retained with a C/I ratio of 55% and RoAs/RoEs of
1%/14%.
Long-term RoE target is at 17-18%.
Management remained cautious on NIMs and retained its FY19 guidance at ~3.75%.
DCBB plans to expand its branch network by ~15-20 in FY19/FY20 each.
Data Points
The ticket sizes for 70%+ of loans are below Rs 30mn.
Split of HL: LAP in mortgage is 70%:30%. Typically, HL borrowers take a top-up loan
in 2-3 years, thereby converting a HL into LAP.
~70-80% of CV loans are PSL-compliant. Within CVs, ~20% loans are refinanced.
O/S SRs: Rs 620mn.
Employee count: 5,790.
The bank did not amortize any MTM losses/provisions during the quarter.
Avg. opex/branch is Rs 6mn.
DCBB recorded Rs 20mn one-off expenses in the tax line.
Management expects to maintain the C/D ratio between 80-86%.
DCB Bank Absolute – ADD Relative – EQUALWEIGHT 9.1% ATR in 11 Months
April 17, 2018 Analyst: Rohan Mandora [email protected] (+91-9737065666)/Ankit Choudhary [email protected] Page 6 of 13
Exhibit 7: ROE-ROA Tree Analysis
Particulars (Rs mn) FY17A FY18A FY19E FY20E FY21E
Yield on Loans and Advances 11.5% 10.7% 10.9% 10.9% 10.9%
Yield on Investments 7.8% 7.0% 7.2% 7.2% 7.2%
Cost of Funds 7.0% 6.1% 6.7% 6.7% 6.7%
Net Interest Margin 3.9% 3.8% 3.7% 3.6% 3.6%
Advances (A) 158,176 203,367 252,175 312,697 384,617
Investments (B) 58,179 62,190 83,680 98,339 119,759
Cash In Hand &Bal with RBI (C) 8,583 11,364 13,378 16,451 20,252
Balances with Banks (D) 3,342 12,356 3,982 4,896 6,027
Int. Earning Assets (A+B+C+D) 228,280 289,276 353,215 432,383 530,655
Average Interest Earning Assets 204,871 258,778 321,245 392,799 481,519
NII/Avg Int Earning Assets 3.9% 3.8% 3.7% 3.6% 3.6%
Non Int Inc/Avg Int Earning Assets 1.2% 1.2% 1.2% 1.2% 1.2%
Tot. Inc/Avg Int Earning Assets 5.1% 5.0% 4.9% 4.8% 4.7%
Op. Costs/AvgInt Earning Assets 3.1% 3.0% 2.8% 2.7% 2.5%
PPI/Avg Int Earning Assets 2.0% 2.0% 2.1% 2.1% 2.2%
Provisions/Avg Int Earning Assets 0.5% 0.5% 0.5% 0.5% 0.6%
Taxes/Avg Int Earning Assets 0.5% 0.5% 0.5% 0.6% 0.6%
Return on Avg Int Earning Assets 1.0% 0.9% 1.0% 1.0% 1.1%
Extraordinary item 0.0% 0.0% 0.0% 0.0% 0.0%
Adj. Return on Avg Int Earning Assets 1.0% 0.9% 1.0% 1.0% 1.1%
Productivity (Avg Int Earning Assets/Avg Total Assets) 94.9% 95.4% 96.0% 96.4% 96.8%
Return on Average Total Assets 0.9% 0.9% 1.0% 1.0% 1.1%
Leverage (Average Total Assets/Average Equity) 11.7 11.4 11.3 12.5 13.5
Return on Average Equity 10.8% 10.3% 10.8% 12.4% 14.2%
Source: Company, Equirus Securities
DCB Bank Absolute – ADD Relative – EQUALWEIGHT 9.1% ATR in 11 Months
April 17, 2018 Analyst: Rohan Mandora [email protected] (+91-9737065666)/Ankit Choudhary [email protected] Page 7 of 13
Company snapshot How we differ from Consensus
Equirus Consensus % Diff Comment
EPS FY18E 10.4 10.4 0 %
We expect consensus to be updated
FY19E 13.1 13.2 -1 %
NII +
Other
Inc
FY18E 15,656 15,556 1 %
FY19E 18,769 18,774 0 %
PAT FY18E 3,195 3,201 0 %
FY19E 4,048 4,122 -2 %
Our key investment arguments: (1) Core PPOP growth to remain healthy. (2) Loan
growth to be above systemic trends at 24%. (3) C/I ratio to improve to 55.5% by FY20E.
(4) While there could be a marginal uptick in slippages, overall losses to be contained
owing to good quality of underlying collaterals.
Key Assumptions 2017A 2018A 2019E 2020E 2021E
Net Interest Income (Rs mn) 7,971 9,954 11,778 14,037 17,221
Net interest margin (%) 3.9% 3.8% 3.7% 3.6% 3.6%
Other Income (Rs mn) 2,488 3,103 3,878 4,732 5,631
Total Income (Rs mn) 10,459 13,057 15,656 18,769 22,852
Operating Expense (Rs mn) 6,277 7,807 9,015 10,414 12,040
Cost to Income Ratio (%) 60.0% 59.8% 57.6% 55.5% 52.7%
Credit Cost (%) 0.8% 0.8% 0.8% 0.8% 0.8%
PAT (Rsmn) 1,997 2,453 3,195 4,048 5,222
Advances Growth (%) 22.4% 28.6% 24.0% 24.0% 23.0%
Deposits Growth (%) 29.2% 24.5% 24.0% 24.0% 24.0%
Key risks: A substantial increase in slippages from the mortgage portfolio, overleveraging
of borrowers, and heightened competitive intensity leading to pricing pressures and delay
in productivity of new branches.
Sensitivity to Key Variables % Change % Impact on EPS
Net Interest Income 10 % 24.4%
Provisioning Costs 10 % -3.6%
Loans & Advances Growth 10 % 5.1%
ERoE Valuations & Assumptions
Rf Ke Term. Growth RoE in Terminal Yr
6.9 % 13.5 % 5.0 % 15.4 %
-
FY18E FY20-23E FY24-28E FY29-38E
PAT Growth 30.2 % 22.5 % 14.9 % 14.9 %
Dividend Payout 11.6 % 10.0 % 10.0 % 10.0 %
BV Growth
10.1% 14.8% 14.9% 14.9%
RoE 10.8 % 15.4 % 15.4 % 15.4 %
-
Years of strong growth
1 5 10 20
Valuation as on date (Rs)
66 129 145 181
Valuation as of Mar ‘19
75 112 165 205
Our TP of Rs 205 is based on an ERoE valuation assuming 20 years of growth, implying 20
years of high growth with an average RoE of 15.4% and cost of equity of 13.5%.
Company description:
DCB is a modern emerging new generation private sector bank. As on 31 Mar’18, it had a
distribution network of 318 branches across 19 states and 3 UTs, and 533 ATMs. Its
promoter – Aga Khan Fund for Economic Development (AKFED) – holds a 16.41% stake at
present.
Comparable valuation Mkt Cap
(Rs Mn)
Price
Target
Target
Date
FY19E
P/E P/B ABPS RoE Divi Yield
Company Reco. CMP FY18A FY19E FY20E FY18A FY19E FY20E FY19E FY18A FY19E FY20E FY18A FY19E FY20E
DCB Bank ADD 190 58,582 205 Mar ’19 23.0 18.3 14.5 2.2 2.1 1.9 92.7 10.3% 10.8% 12.4% 0.4% 0.5% 0.7%
City Union Bank ADD 180 119,784 175 Mar ’19 19.1 16.6 13.7 3.2 2.8 2.4 64.9 15.5% 16.0% 16.6% 0.2% 0.2% 0.2%
South Indian Bank LONG 25 45,492 39 Mar ’19 14.2 5.2 5.2 1.2 1.0 0.9 24.7 6.5% 12.3% 14.6% 1.8% 2.0% 2.2%
DCB Bank Absolute – ADD Relative – EQUALWEIGHT 9.1% ATR in 11 Months
April 17, 2018 Analyst: Rohan Mandora [email protected] (+91-9737065666)/Ankit Choudhary [email protected] Page 8 of 13
Consolidated quarterly earnings forecast and key drivers Rs in Mn 1Q18A 2Q18A 3Q18A 4Q18A 1Q19E 2Q19E 3Q19E 4Q19E 1Q20E 2Q20E 3Q20E 4Q20E FY18A FY19E FY20E FY21E
Interest Income 5,660 5,870 6,108 6,492 7,015 7,401 7,806 8,918 9,376 9,817 10,314 8,359 24,130 31,140 37,866 46,555 Interest Expense 3,329 3,389 3,603 3,855 4,240 4,537 4,757 5,827 6,109 6,405 6,715 4,600 14,176 19,362 23,829 29,334
Net Interest Income 2,332 2,481 2,505 2,637 2,775 2,863 3,049 3,090 3,267 3,412 3,599 3,759 9,954 11,778 14,037 17,221
Non Interest Income 858 653 749 849 901 933 933 1,112 1,121 1,163 1,261 1,187 3,103 3,878 4,732 5,631
Total Income 3,189 3,134 3,254 3,486 3,676 3,796 3,982 4,202 4,388 4,575 4,860 4,946 13,057 15,656 18,769 22,852
Operating and Other Expenses 1,825 1,890 2,029 2,070 2,155 2,220 2,275 2,365 2,462 2,567 2,676 2,710 7,807 9,015 10,414 12,040 Staff Cost 905 921 970 1,017 1,069 1,101 1,145 1,183 1,244 1,288 1,333 1,353 3,812 4,499 5,218 6,053 Other Operating Expenses 920 969 1,059 1,053 1,086 1,119 1,130 1,181 1,218 1,279 1,342 1,357 3,995 4,516 5,195 5,987 Pre-Provision Income 1,364 1,244 1,225 1,416 1,521 1,576 1,707 1,837 1,926 2,008 2,185 2,236 5,250 6,641 8,355 10,812 Provisions and Write-offs 355 302 343 388 404 390 427 505 475 484 530 640 1,388 1,726 2,128 2,778 PBT 1,009 942 883 1,028 1,117 1,186 1,280 1,333 1,451 1,524 1,655 1,596 3,862 4,916 6,227 8,033 TAX 357 353 313 386 391 415 448 466 508 534 579 559 1,408 1,720 2,179 2,812 Extraordinary 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 PAT 652 589 570 642 726 771 832 866 943 991 1,076 1,038 2,453 3,195 4,048 5,222 EPS (Qtrly) 2 2 2 2 2 3 3 3 3 3 3 3 8 10 13 17 Key Drivers - - - - - - - - - - - - - - - - YoA 11.7 % 11.4 % 11.3 % 11.4 % 10.9 % 10.9 % 10.9 % 10.9 % 10.9 % 10.9 % 10.9 % 10.9 % 10.7 % 10.9 % 10.9 % 10.9 % YoI 7.4 % 7.3 % 7.4 % 7.2% 7.4 % 7.4 % 7.4 % 7.4 % 7.4 % 7.4 % 7.4 % 7.4 % 7.0 % 7.2 % 7.2 % 7.2 % CoF 6.6 % 6.5 % 6.4 % 6.3 % 6.3 % 6.3 % 6.3 % 6.3 % 6.3 % 6.3 % 6.3 % 6.3 % 6.1 % 6.7 % 6.7 % 6.7 %
NIM 4.2 % 4.2 % 4.1 % 4.2% 3.7 % 3.7 % 3.7 % 3.6 % 3.6 % 3.6 % 3.6 % 3.6 % 3.8 % 3.7 % 3.6 % 3.6 %
C/I Ratio 57 % 60 % 62 % 59 % 59 % 58 % 57 % 56 % 56 % 56 % 55 % 55 % 60 % 58 % 55 % 53 % CD Ratio 84.9 % 84.6 % 87.3 % 84.7 % 85.6 % 86.4 % 87.3 % 84.7 % 85.6 % 86.4 % 87.3 % 84.7 % 84.7 % 84.7 % 84.7 % 84.0 % Non-Interest Income/ Total Income 26.9 % 20.8 % 23.0 % 24.3 % 24.5 % 24.6 % 23.4 % 26.5 % 25.5 % 25.4 % 25.9 % 24.0 % 23.8 % 24.8 % 25.2 % 24.6 % ROA 1.1 % 0.9 % 0.9 % 0.9 % 0.9 % 0.9 % 1.0 % 1.0 % 1.0 % 1.0 % 1.0 % 1.0 % 0.9 % 1.0 % 1.0 % 1.1 % ROE 10.7 % 8.8 % 9.3 % 10.2% 10.2 % 10.6 % 11.1 % 11.3 % 12.0 % 12.3 % 12.9 % 12.1 % 10.3 % 10.8 % 12.4 % 14.2 % Sequential Growth (%) - - - - - - - - - - - - - - - -
NII 5.9 % 6.4 % 0.9 % 5.3 % 5.2 % 3.2 % 6.5 % 1.3 % 5.7 % 4.4 % 5.5 % 4.4 % - - - -
TI 12% -2% 4% 7% 5% 3% 5% 6% 4% 4% 6% 2%
PPI 18.3 % -8.8 % -1.5 % 15.5 % 7.4 % 3.6 % 8.3 % 7.6 % 4.8 % 4.3 % 8.8 % 2.3 % - - - - Provisions and Write-offs 5 % -15 % 13 % 13 % 4 % -3 % 10 % 18 % -6 % 2 % 10 % 21 % - - - - PAT 23 % -10 % -3 % 13 % 13 % 6 % 8 % 4 % 9 % 5 % 9 % -4 % - - - - EPS 17 % -12 % -3 % 13 % 9 % 6 % 8 % 4 % 9 % 5 % 9 % -4 % - - - - Advances 3 % 7 % 7 % 9 % 6 % 6 % 6 % 3 % 6 % 6 % 6 % 3 % - - - -
Deposits -1 % 7 % 4 % 13 % 5 % 5 % 5 % 6 % 5 % 5 % 5 % 6 % - - - -
Total Business 5 % -1 % 7 % 6 % 6 % 6 % 6 % 6 % 5 % 6 % 6 % 8 % Yearly Growth (%) - - - - - - - - - - - - - - - - NII 32 % 30 % 20 % 20 % 19 % 15 % 22 % 17 % 18 % 19 % 18 % 22 % 25 % 18 % 19 % 23 % TI 34 % 24 % 19 % 23 % 15 % 21 % 22 % 21 % 19 % 21 % 22 % 18 % 25 % 20 % 20 % 22 % PPI 47 % 23 % 12 % 23 % 12 % 27 % 39 % 30 % 27 % 27 % 28 % 22 % 26 % 27 % 26 % 29 %
Provisions and Write-offs 73 % 14 % 12 % 14 % 14 % 29 % 25 % 30 % 18 % 24 % 24 % 27 % 24 % 24 % 23 % 31 %
PAT 39% 21% 11% 21% 11% 31% 46% 35% 30% 29% 29% 20% 23% 30% 27% 29%
EPS 32% 12% 3% 21% 7% 26% 41% 30% 30% 29% 29% 20% 18% 25% 27% 29% Advances 22 % 20 % 28 % 29 % 33 % 32 % 32 % 24 % 24 % 24 % 24 % 24 % 29 % 24 % 24 % 23 % Deposits 22 % 16 % 13 % 24 % 32 % 29 % 32 % 24 % 24 % 24 % 24 % 24 % 24 % 24 % 24 % 24 %
Total Business 22.1% 18.2% 19.3% 26.3% 32.4% 30.7% 31.6% 24.0% 24.0% 24.0% 24.0% 24.0% 26.3% 24.0% 24.0% 23.5%
DCB Bank Absolute – ADD Relative – EQUALWEIGHT 9.1% ATR in 11 Months
April 17, 2018 Analyst: Rohan Mandora [email protected] (+91-9737065666)/Ankit Choudhary [email protected] Page 9 of 13
Consolidated financials
P&L (Rs mn) FY18A FY19E FY20E FY21E
Balance Sheet (Rs mn) FY18A FY19E FY20E FY21E
Particulars FY18A FY19E FY20E FY21E
Interest Income 24,130 31,140 37,866 46,555 Capital 3,081 3,081 3,081 3,081 Asset Quality
Interest Expense 14,176 19,362 23,829 29,334 Reserves and Surplus 24,998 27,836 31,420 36,178 Gross NPA (Rs mn) 3,690 4,740 5,886 7,267
Net Interest Income 9,954 11,778 14,037 17,221 Deposits 240,069 297,685 369,129 457,721 Gross NPA (%) 1.8% 1.9% 1.9% 1.9%
% Growth 24.9% 18.3% 19.2% 22.7% Borrowings 19,267 20,836 22,563 24,462 Net NPA (Rs mn) 1,467 2,370 3,078 3,676
Treasury Income 593 500 500 500 Other Liab & Provisions 14,807 17,768 21,322 25,586 Net NPA (%) 0.7% 0.9% 1.0% 1.0%
Other Inc. 2,510 3,378 4,232 5,131 Total liabilities 302,221 367,207 447,515 547,028 % coverage of NPA 39.8% 50.0% 47.7% 49.4%
Total Income 13,057 15,656 18,769 22,852 Cash & Bal with RBI 11,364 13,378 16,451 20,252 Delinquencies (%) 1.9% 2.0% 2.0% 2.0%
Employees Expenses 3,812 4,499 5,218 6,053 Bal. with banks 12,356 3,982 4,896 6,027 Business Ratios
Other Op. Expenses 3,995 4,516 5,195 5,987 Investments 62,190 83,680 98,339 119,759 Credit / Deposit(%) 84.7% 84.7% 84.7% 84.0%
Operating Profit 5,250 6,641 8,355 10,812 Advances 203,367 252,175 312,697 384,617 Invest/ Deposit (%) 25.9% 28.1% 26.6% 26.2%
% Growth 25.5% 26.5% 25.8% 29.4% Fixed Assets 4,940 5,187 5,447 5,719 CASA (%) 24.3% 24.3% 24.3% 24.4%
Tax 1,408 1,720 2,179 2,812 Other Assets 8,004 8,805 9,685 10,654 RoaA (%) 0.9% 1.0% 1.0% 1.1%
Total Provisions 1,388 1,726 2,128 2,778
Total assets 302,221 367,207 447,515 547,028 RoE (%) 10.3% 10.8% 12.4% 14.2%
Net Profit 2,453 3,195 4,048 5,222 % Growth 25.7% 21.5% 21.9% 22.2% Dividend Yield (%) 0.1% 0.1% 0.1% 0.1%
% Growth 22.9% 30.2% 26.7% 29.0% Key assumptions CAR
Earnings Ratios Deposits RWA (Rs. bn) 207.6 247.4 297.9 356.1
Int Inc. / Avg.assets 8.9% 9.3% 9.3% 9.4% Avg deposit growth (%) 24.5% 24.0% 24.0% 24.0%
Tier I (%) 12.7% 11.8% 11.0% 10.5%
Int. Exp./ Avg assets 5.2% 5.8% 5.8% 5.9% Avg cost of deposits (%) 6.5% 6.7% 6.7% 6.7%
Tier II (%) 3.8% 3.1% 2.6% 2.2%
NIM (%) 3.8% 3.7% 3.6% 3.6% Advances Total CAR (%) 16.5% 15.0% 13.6% 12.7%
Int. exp/ Int earned 58.7% 62.2% 62.9% 63.0% Avg. adv growth (%) 28.6% 24.0% 24.0% 23.0% Per Share Data
Oth. Inc./ Tot. Inc. 23.8% 24.8% 25.2% 24.6% Avg yield on advances 10.7% 10.9% 10.9% 10.9% BVPS 91.1 100.4 112.0 127.4
Staff exp/Opex 48.8% 49.9% 50.1% 50.3% Investments Adj. BVPS, Rs. 86.4 92.7 102.0 115.5
Cost/ Income Ratio 59.8% 57.6% 55.5% 52.7% Avg. invest growth (%) 6.9% 34.6% 17.5% 21.8% Price/ Adj. BV 2.2 2.1 1.9 1.6
Prov./ Oper Profit 26.4% 26.0% 25.5% 25.7%
Avg. yield on invest (%) 7.0% 7.2% 7.2% 7.2%
EPS, Rs. 8.3 10.4 13.1 16.9
Prov./Avg. loans 0.8% 0.8% 0.8% 0.8%
P/E Ratio 23.0 18.3 14.5 11.2
1-yr forward P/E
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DCB Bank Absolute – ADD Relative – EQUALWEIGHT 9.1% ATR in 11 Months
April 17, 2018 Analyst: Rohan Mandora [email protected] (+91-9737065666)/Ankit Choudhary [email protected] Page 10 of 13
Historical consolidated financials
P&L (Rs mn) FY15A FY16A FY17A FY18A
Balance Sheet (Rs mn) FY15A FY16A FY17A FY18A
- FY15A FY16A FY17A FY18A
Interest Income 14,224 16,985 20,762 24,130 Capital 2,820 2,844 2,853 3,081 Asset Quality
Interest Expense 9,142 10,790 12,791 14,176 Reserves and Surplus 13,066 15,077 19,195 24,998 Gross NPA (Rs mn) 1,861 1,974 2,542 3,690
Net Interest Income 5,082 6,195 7,971 9,954 Deposits 126,091 149,260 192,892 240,069 Gross NPA (%) 1.8% 1.5% 1.6% 1.8%
% Growth 38.0% 21.9% 28.7% 24.9% Borrowings 11,638 11,479 12,758 19,267 Net NPA (Rs mn) 1,057 975 1,244 1,467
Treasury Income 353 568 558 593 Other Liabilities 7,708 12,525 12,765 14,807 Net NPA (%) 1.0% 0.8% 0.8% 0.7%
Other Inc. ExcTrery 1,304 1,637 1,930 2,510 Total liabilities 161,323 191,185 240,464 302,221 % coverage of NPA 58.4% 50.9% 50.0% 39.8%
Total Income 6,739 8,400 10,459 13,057 Cash &Bal with RBI 6,337 7,034 8,583 11,364 Delinquencies (%) 1.9% 1.9% 1.8% 1.9%
Employees Expenses 1,960 2,451 3,080 3,812 Bal. with bank 855 1,882 3,342 12,356 Business Ratios
Other Op. Expenses 2,005 2,458 3,197 3,995 Investments 39,622 43,333 58,179 62,190 Credit / Deposit(%) 83.0% 86.6% 82.0% 84.7%
Operating Profit 2,774 3,490 4,182 5,250 Advances 104,651 129,214 158,176 203,367 Investmnt / Deposit 31.4% 29.0% 30.2% 25.9%
% Growth 47.6% 25.8% 19.8% 25.5% Fixed Assets 2,367 2,480 4,886 4,940 CASA (%) 23.4% 23.4% 24.3% 24.3%
Tax 168 666 1,070 1,408 Other Assets 7,492 7,242 7,298 8,004 RoaA (%) 1.3% 1.1% 0.9% 0.9%
Total Provisions 694.2 879.1 1,114.9 1,388.0 Total assets 161,323 191,185 240,464 302,221 RoE (%) 14.5% 11.9% 10.8% 10.3%
Net Profit 1,911.8 1,945.2 1,996.6 2,453.4 % Growth 24.8% 18.5% 25.8% 25.7% Dividend Yield (%) 0.0% 0.0% 0.1% 0.1%
% Growth 26.3% 1.7% 2.6% 22.9% Key assumptions CAR
Earnings Ratios Deposits
RWA (Rs. bn) 106 134 173 208
Int Inc. / Avg.assets 9.8% 9.6% 9.6% 8.9%
Avg deposit growth (%) 22.1% 18.4% 29.2% 24.5%
Tier I (%) 14.2% 12.8% 11.9% 12.7%
Int Exp./ Avg. assets 6.3 % 6.1 % 5.9 % 5.2 % Avg cost of deposits (%) 7.3 % 7.3 % 6.9 % 6.5 % Tier II (%) 0.7% 1.3% 1.9% 3.8%
NIM (%) 3.7 % 3.7 % 3.9 % 3.8 % Advances Total CAR (%) 15.0% 14.1% 13.8% 16.5%
Int. exp/ Int earned 64.3 % 63.5 % 61.6 % 58.7 % Avg. advances growth 28.6 % 23.5 % 22.4 % 28.6 %
Per Share Data
Oth. Inc./ Tot. Inc 24.6 % 26.2 % 23.8 % 23.8 % Avg yield on advances 11.8% 11.6% 11.5% 10.7% BVPS 54.5 61.2 68.3 91.1
Staff exp/Opt. exp 49.4 % 49.9 % 49.1 % 48.8 % Investments Adj. BVPS, Rs. 50.8 57.8 63.9 86.4
Cost/ Income Ratio 58.8 % 58.4 % 60.0 % 59.8 % Avg. investment growth 9.0 % 9.4 % 34.3 % 6.9 % Price/ Adj. BV 3.7 3.3 3.0 2.2
Prov./ Op. Profit 25.0 % 25.2 % 26.7 % 26.4 %
Avg. YoI 6.9 % 7.4 % 7.8 % 7.0 %
EPS, Rs. 7.2 6.9 7.0 8.3
Prov./Avg. loans 0.7 % 0.8 % 0.8 % 0.8 %
P/E Ratio 26.5 27.7 27.1 23.0
DCB Bank Absolute – ADD Relative – EQUALWEIGHT 9.1% ATR in 11 Months
April 17, 2018 Analyst: Rohan Mandora [email protected] (+91-9737065666)/Ankit Choudhary [email protected] Page 11 of 13
Equirus Securities
Research Analysts Sector/Industry Email
Equity Sales E-mail
Abhishek Shindadkar IT Services [email protected] 91-22-43320643 Vishad Turakhia [email protected] 91-22-43320633
Ashutosh Tiwari Auto, Metals & Mining [email protected] 91-79-61909517 SubhamSinha [email protected] 91-22-43320631
Depesh Kashyap Mid-Caps [email protected] 91-79-61909528 Viral Desai [email protected] 91-22-43320635
Dhaval Dama FMCG, Mid-Caps [email protected] 91-79-61909518 Viraj Mehta [email protected] 91-22-43320634
Manoj Gori Consumer Durables [email protected] 91-79-61909523 Dealing Room E-mail
Maulik Patel Oil and Gas [email protected] 91-79-61909519 Ashish Shah [email protected] 91-22-43320662
Pranav Mehta Building Materials [email protected] 91-79-61909514 IleshSavla [email protected] 91-22-43320666
Praful Bohra Pharmaceuticals [email protected] 91-22-43320611 Manoj Kejriwal [email protected] 91-22-43320663
Rohan Mandora Banking & Financial Services [email protected] 91-79-61909529 Dharmesh Mehta [email protected] 91-22-43320661
Associates E-mail Compliance Officer E-mail
Ankit Choudhary [email protected] 91-79-61909533 Jay Soni [email protected] 91-79-61909561
Bharat Celly [email protected] 91-79-61909524 Corporate Communications E-mail
Harshit Patel [email protected] 91-79-61909522 Mahdokht Bharda [email protected] 91-22-43320647 Hetal Bhatia [email protected] 91-79-61909532
Meet Chande [email protected] 91-79-61909513
Nishant Bagrecha [email protected] 91-79-61909526
Ronak Soni [email protected] 91-79-61909525
Samkit Shah [email protected] 91-79-61909520
Shreepal Doshi [email protected] 91-79-61909541
Varun Baxi [email protected] 91-79-61909527
Vikas Jain [email protected] 91-79-61909531
Rating & Coverage Definitions: Absolute Rating • LONG : Over the investment horizon, ATR >= Ke for companies with Free Float market cap >Rs 5 billion and ATR >= 20% for rest of the companies • ADD: ATR >= 5% but less than Ke over investment horizon • REDUCE: ATR >= negative 10% but <5% over investment horizon • SHORT: ATR < negative 10% over investment horizon Relative Rating • OVERWEIGHT: Likely to outperform the benchmark by at least 5% over investment horizon • BENCHMARK: likely to perform in line with the benchmark • UNDERWEIGHT: likely to under-perform the benchmark by at least 5% over investment horizon Investment Horizon Investment Horizon is set at a minimum 3 months to maximum 18 months with target date falling on last day of a calendar quarter. Lite vs. Regular Coverage vs. Spot Coverage We aim to keep our rating and estimates updated at least once a quarter for Regular Coverage stocks. Generally, we would have access to the company and we would maintain detailed financial model for Regular coverage companies. We intend to publish updates on Lite coverage stocks only an opportunistic basis and subject to our ability to contact the management. Our rating and estimates for Lite coverage stocks may not be current. Spot coverage is meant for one-off coverage of a specific company and in such cases, earnings forecast and target price are optional. Spot coverage is meant to stimulate discussion rather than provide a research opinion.
Registered Office:
Equirus Securities Private Limited
Unit No. 1201, 12th Floor, C Wing, Marathon Futurex,
N M Joshi Marg, Lower Parel,
Mumbai-400013.
Tel. No: +91 – (0)22 – 4332 0600
Fax No: +91- (0)22 – 4332 0601
Corporate Office:
3rd floor, House No. 9,
Magnet Corporate Park, Near Zydus Hospital, B/H Intas Sola Bridge,
S.G. Highway Ahmedabad-380054
Gujarat
Tel. No: +91 (0)79 - 6190 9550
Fax No: +91 (0)79 – 6190 9560
DCB Bank Absolute – ADD Relative – EQUALWEIGHT 9.1% ATR in 11 Months
April 17, 2018 Analyst: Rohan Mandora [email protected] (+91-9737065666)/Ankit Choudhary [email protected] Page 12 of 13
© 2018Equirus Securities Private Limited. All rights reserved. For Private Circulation only. This report or any portion hereof may not
be reprinted, sold or redistributed without the written consent of Equirus Securities Private Limited
Analyst Certification
We, Rohan Mandora/Ankit Choudhary, author to this report, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject company or companies and its or
their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Disclosures
Equirus Securities Private Limited (ESPL) having Corporate Identification Number U65993MH2007PTC176044 is registered in India with Securities and Exchange Board of India (SEBI) as a trading member on the
Capital Market (Reg. No. INB231301731), Futures & Options Segment (Reg. No.INF231301731) of the National Stock Exchange of India Ltd. (NSE) and on Cash Segment (Reg. No.INB011301737) of Bombay Stock
Exchange Limited (BSE).ESPL is also registered with SEBI as Research Analyst under SEBI (Research Analyst) Regulations, 2014 (Reg. No. INH000001154), as a Portfolio Manager under SEBI (Portfolio Managers
Regulations, 1993 (Reg. No.INP000005216) and as a Depository Participant of the Central Depository Services (India) Limited (Reg. No.IN-DP-324-2017). There are no disciplinary actions taken by any regulatory
authority against ESPL. ESPL is a subsidiary of Equirus Capital Pvt. Ltd. (ECPL) which is registered with SEBI as Category I Merchant Banker and provides investment banking services including but not limited to
merchant banking services, private equity, mergers & acquisitions and structured finance.
As ESPL and its associates are engaged in various financial services business, it might have: - (a) received compensation (except in connection with the preparation of this report) from the subject company for
investment banking or merchant banking or brokerage services in the past twelve months;(b) managed or co-managed public offering of securities for the subject company in the past twelve months; or (c) have
received a mandate from the subject company; or (d) might have other financial, business or other interests in entities including the subject company (ies) mentioned in this Report. ESPL & its associates, their
directors and employees may from time to time have positions or options in the company and buy or sell the securities of the company (ies) mentioned herein. ESPL and its associates collectively do not own (in
their proprietary position) 1% or more of the equity securities of the subject company mentioned in the report as the last day of the month preceding the publication of the research report. ESPL or its Analyst or
Associates did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ESPL nor
Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or
brokerage service transactions. ESPL has not been engaged in market making activity for the subject company.
The Research Analyst engaged in preparation of this Report:-
(a) has not received any compensation from the subject company in the past twelve months; (b) has not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) has not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months; (d) has not received any compensation for products
or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months; (e) has not received any compensation or other benefits from the
subject company or third party in connection with the research report; (f) might have served as an officer, director or employee of the subject company; (g) is not engaged in market making activity for the
subject company.
This document is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution,
publication, availability or use would be contrary to law, regulation or which would subject ESPL and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein
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This document has been prepared solely for information purpose and does not constitute a solicitation to any person to buy, sell or subscribe any security. ESPL or its affiliates are not soliciting any action based
on this report. The information and opinions contained herein is from publicly available data or based on information obtained in good faith from sources believed to be reliable but ESPL provides no guarantee as
to its accuracy or completeness. The information contained herein is as on date of this report, and is subject to change or modification and any such changes could impact our interpretation of relevant
information contained herein. While we would endeavour to update the information herein on reasonable basis, ESPL and its affiliates, their directors and employees are under no obligation to update or keep the
information current. Also there may be regulatory, compliance, or other reasons that may prevent ESPL and its group companies from doing so. This document is prepared for assistance only and is not intended
to be and must not alone be taken as the basis for an investment decision. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an
investment in the securities of companies referred to in this document including the merits and risks involved. This document is intended for general circulation and does not take into account the specific
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consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. ESPL/its affiliates do and seek to do business with
companies covered in its research report. Thus, investors should be aware that the firm may have conflict of interest.
DCB Bank Absolute – ADD Relative – EQUALWEIGHT 9.1% ATR in 11 Months
April 17, 2018 Analyst: Rohan Mandora [email protected] (+91-9737065666)/Ankit Choudhary [email protected] Page 13 of 13
A graph of daily closing prices of securities is available at http://www.nseindia.com/ChartApp/install/charts/mainpage.jsp and www.bseindia.com (Choose a company from the list on the browser and select the
“three years” period in the price chart).
Disclosure of Interest statement for the subject Company Yes/No If Yes, nature of such interest
Research Analyst’ or Relatives’ financial interest No
Research Analyst’ or Relatives’ actual/beneficial ownership of 1% or more No
Research Analyst’ or Relatives’ material conflict of interest No
Disclaimer for U.S. Persons
ESPL/its affiliates are not a registered broker–dealer under the U.S. Securities Exchange Act of 1934, as amended (the“1934 act”) and under applicable state laws in the United States. In addition Equirus is not a
registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the “Acts”), and under appl icable state laws in the United States.
Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Equirus, including the products and services described herein are not available to or intended
for U.S. persons. The information contained in this Report is not intended for any person who is a resident of the United States of America or a resident of any jurisdiction, the laws of which imposes prohibition
on soliciting the securities business in that jurisdiction without going through the registration requirements and/ or prohibit the use of any information contained in this report. This Report and its respective
contents do not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. "U.S.
Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US
Persons" under certain rules.