28 april 2020 results review 1qcy20 ambuja cements cement -1qcy20...ambuja cements page | 3 :...

28 April 2020 Results Review 1QCY20

Ambuja Cements

HSIE Research is also available on Bloomberg ERH HDF & Thomson Reuters

Robust performace

Ambuja reported a healthy 1QCY20 standalone result. While Rev declined 3%

YoY to Rs 28.3bn (on sales loss in late Mar, led by nationwide lockdown to

curb Covid-19 impact), robust realisation and flat opex drove EBITDA/APAT

up by 30/6% YoY to Rs 6.0/4.0bn resp. We expect continued lockdown post 1Q,

and slower ramp-up 3QCY20 onwards to pull down CY20E volumes by 15%

YoY. However, robust realisation base and falling energy costs should bolster

margin expansion. We maintain BUY with unchanged TP of Rs 210/sh.

Lower utilisation but NSR remains firm: Sales vol in 1QCY20 declined 10/12% YoY/QoQ to 5.8mn MT, mainly led by Covid-19 lockdown during

Mar end. Aided by its large presence in the north/Gujarat markets, its NSR

remained firm at Rs 4,909/MT (+7/2%YoY/QoQ).

Robust pricing, stable opex bolsters margin to Rs 1,047/MT: Ambuja’s 1QCY20 unitary opex rose 2% QoQ (flat YoY) to Rs 3,862/MT, led by lower

fuel costs, and increased production efficiencies. Its unitary input costs fell

4/8% YoY/QoQ. Even unitary freight cost fell 1/5% QoQ/YoY on supply

chain optimization and lower diesel prices. However, fixed costs per MT

rose 12/6% YoY/QoQ on lower utilisation, thus offsetting the benefits of

lower energy costs. Amid flat opex, robust NSR drove up unitary EBITDA

by 44% YoY to Rs 1,047/MT (its higher margin in Mar-qtr since 1QCY12)!

EBITDA/APAT up 30/7% YoY: Despite volume decline, strong margin buoyed EBITDA by 30% YoY. Below EBITDA, other income almost halved

as the planned dividend income from ACC on 27th Mar could not be

booked owing to delay in scheduled AGM. Eff tax rate remained flat

YoY/QoQ at 25%. Thus, APAT grew at slower pace of 6% YoY.

Maintain BUY: We model in 15% volume decline in CY20, owing to sales loss due to lockdown impact during 1Q/2QCY20 and slower sales pick-up

thereafter. Ambuja’s clinker/grinding expansions in north by 18/6% to

21/31mn MT is expected to be operational by 1QCY21E. This should drive

12% volume CAGR during CY20-22E, in our view. Sustenance of healthy

NSR in the north/Gujarat regions and falling energy costs should further

bolster EBITDA margin to ~Rs 990/MT in CY22E from ~Rs 900/MT in CY19

(already at 7-yr high). We maintain BUY on the stock, with a TP of Rs 210/sh

(SOTP based: we value standalone biz at 10x its Mar’22E EBITDA and

Ambuja’s 50% holding in ACC at 20% disc to our target Mcap for ACC). Our

TP implies replacement valuation of Rs 8.2bn/MT of capacity (similar to its

10-yr historical mean).

Financial Summary – Standalone

YE Dec (Rs mn) 1Q

CY20

1Q

CY19

YoY

(%)

4Q

CY19

QoQ

(%) CY19 CY20E CY21E CY22E

Net Sales 28,275 29,276 (3.4) 31,359 (9.8) 116,679 100,422 114,949 128,808

EBITDA 6,032 4,633 30.2 5,474 10.2 21,489 19,210 22,635 25,119

APAT 3,991 3,754 6.3 3,327 20.0 14,770 11,871 13,873 15,636

AEPS (Rs) 2.0 1.9 6.3 1.7 20.0 7.4 6.0 7.0 7.9

EV /EBITDA (x)

8.2 9.2 7.8 6.7

EV/MT (Rs bn)

5.99 5.66 5.65 5.38

P/E (x)

23.1 28.8 24.6 21.8

RoE (%)

6.8 5.3 6.0 6.5

Source: Company, HSIE Research

BUY

CMP (as on 27 Apr 2020) Rs 172

Target Price Rs 210

NIFTY 9,282

KEY

CHANGES OLD NEW

Rating Buy Buy

Price Target Rs 210 Rs 210

EPS % CY20 CY21E

- -

KEY STOCK DATA

Bloomberg code ACEM IN

No. of Shares (mn) 1,986

MCap (Rs bn) / ($ mn) 342/4,492

6m avg traded value (Rs mn) 766

52 Week high / low Rs 240/137

STOCK PERFORMANCE (%)

3M 6M 12M

Absolute (%) (20.1) (12.8) (23.8)

Relative (%) 2.8 6.3 (5.0)

SHAREHOLDING PATTERN (%)

Dec-19 Mar-20

Promoters 63.4 63.3

FIs & Local MFs 13.3 14.6

FPIs 16.4 15.4

Public & Others 7.0 6.9

Pledged Shares 0.0 0.0

Source : BSE

Rajesh Ravi

[email protected]

+91-22-6171-7352

Saurabh Dugar

[email protected]

+91-22-6171-7353

Page | 2

Ambuja Cements: Results Review 1QCY20

Quarterly standalone Financial Snapshot

Particulars (Rs mn) 1QCY20 1QCY19 YoY (%) 4QCY19 QoQ (%)

Net Sales 28,275 29,276 (3.4) 31,359 (9.8)

Raw Materials 4,272 4,337 (1.5) 5,547 (23.0)

Power and Fuel 5,622 7,099 (20.8) 6,692 (16.0)

Employee 1,722 1,671 3.0 1,690 1.9

Transport 5,665 6,596 (14.1) 6,463 (12.4)

Other Exp 4,964 4,941 0.5 5,493 (9.6)

EBITDA 6,032 4,633 30.2 5,474 10.2

EBITDA margin (%) 21.3 15.8 551 17.5 388

Depreciation 1,379 1,314 5.0 1,487 (7.2)

EBIT 4,653 3,319 40.2 3,987 16.7

Other Income (Including EO Items) 881 2,402 (63.3) 1,878 (53.1)

Interest Cost 231 175 31.9 237 (2.6)

PBT - Reported 5,304 5,546 (4.4) 5,629 (5.8)

Tax 1,313 1,276 2.9 1,080 21.6

Tax rate 24.8 23.0 175 19.2 557

RPAT 3,991 4,270 (6.5) 4,549 (12.3)

EO (Loss) / Profit (Net Of Tax) - 516 1,222

APAT 3,991 3,754 6.3 3,327 20.0

Adj PAT margin 14.1 12.8 129 10.6 351


Quarterly Performance Analysis

Particulars (% of Revenue) 1QCY20 1QCY19 YoY (%) 4QCY19 QoQ (%)

Sales vol (mn MT) 5.8 6.4 (9.6) 6.5 (11.9)

Rs/MT trend

NSR 4,909 4,596 6.8 4,795 2.4

Raw materials 742 681 8.9 848 (12.6)

Power & fuel 976 1,114 (12.4) 1,023 (4.6)

Employee 983 1,035 (5.0) 988 (0.5)

Freight (inward +outward) 299 262 14.0 258 15.7

Other Exp 862 776 11.1 840 2.6

Opex 3,862 3,869 (0.2) 3,958 (2.4)

EBITDA 1,047 727 44.0 837 25.1


Standalone Rev declined

3% YoY to Rs 28.3bn,

EBITDA/APAT grew

30/6% YoY to Rs 6.03/4.0bn

resp.

Sales vol declined 10/12%

YoY/QoQ to 5.8mn MT,

mainly led by Covid-19

shutdowns.

NSR rose 7/2%YoY/QoQ

owing to strong pricing in

tbe north/Gujarat region.

Unitary opex fell 2% QoQ

(flat YoY) to Rs 3,862/MT

led by lower fuel costs, and

increased production &

input cost efficiencies and

lower diesel prices.

Lower utilisation however

led to higher fixed costs

YoY/QoQ, thus moderating

the cost reduction.

Unitary EBITDA thus

buoyed 44/25% YoY/QoQ

to Rs 1,047/MT, despite

volume decline.

Other income fell 53% YoY

as there is no dividend

booked this year.

Page | 3


Operational Trends and Assumptions

Particulars CY16 CY17 CY18 CY19 CY20E CY21E CY22E

Cement Cap (mn MT) 29.6 29.6 29.6 29.6 31.4 31.4 31.4

Sales Volume (mn MT) 21.5 23.0 24.2 24.0 20.4 23.1 25.4

YoY change (%) (1.5) 7.0 5.2 (0.9) (14.7) 13.0 10.0

Utilisation (%) 72.7 77.8 81.8 81.1 65.2 73.7 81.0

(Rs/ MT trend)

NSR 4,283 4,550 4,697 4,870 4,914 4,978 5,071

YoY change (%) (1.3) 6.2 3.2 3.7 0.9 1.3 1.9

Raw material cost 619 655 696 722 735 757 782

Power and fuel cost 853 972 1,053 1,079 1,026 1,046 1,077

Transport cost 880 963 1,047 1,003 952 971 1,001

Employee cost 275 288 281 281 330 295 280

Other expenses 866 847 836 888 932 929 942

Total Opex 3,494 3,725 3,913 3,973 3,974 3,998 4,082

YoY change (%) (4.0) 6.6 5.1 1.5 0.0 0.6 2.1

EBITDA per MT 789 825 784 897 940 980 989


Page | 4


Long term op performance trends (TTM basis)

We have plotted Ambuja Cements’ operating metrics on trailing 12-month

(TTM) basis, to assess its long term performance trends

Demand disruption in peak month of Mar-20 drove

volume decline on TTM basis

… NSR remained firm owing to strong pricing in the

north/ Gujarat markets



Opex continues to moderate thus bolstering margin

expansion

Opex trends: Stable input and fixed costs, falling

logisitcs cost

Source: Company, HSIE Research Source: Company, HSIE Research

(6)

(4)

(2)

0

2

4

6

8

10

20

21

22

23

24

25

Ma

r-15

Jun

-15

Sep

-15

De

c-15

Ma

r-16

Jun

-16

Sep

-16

De

c-16

Ma

r-17

Jun

-17

Sep

-17

De

c-17

Ma

r-18

Jun

-18

Sep

-18

De

c-18

Ma

r-19

Jun

-19

Sep

-19

De

c-19

Ma

r-20

TTM Sales volume YoY - RHS

%mn MT %

(8)

(6)

(4)

(2)

0

2

4

6

8

3,800

4,000

4,200

4,400

4,600

4,800

5,000

5,200

Ma

r-15

Jun

-15

Sep

-15

De

c-15

Ma

r-16

Jun

-16

Sep

-16

De

c-16

Ma

r-17

Jun

-17

Sep

-17

De

c-17

Ma

r-18

Jun

-18

Sep

-18

De

c-18

Ma

r-19

Jun

-19

Sep

-19

De

c-19

Ma

r-20

TTM NSR YoY - RHSRs/MT %

(6)

(4)

(2)

0

2

4

6

8

3,200

3,300

3,400

3,500

3,600

3,700

3,800

3,900

4,000

4,100

Ma

r-15

Jun

-15

Sep

-15

De

c-15

Ma

r-16

Jun

-16

Sep

-16

De

c-16

Ma

r-17

Jun

-17

Sep

-17

De

c-17

Ma

r-18

Jun

-18

Sep

-18

De

c-18

Ma

r-19

Jun

-19

Sep

-19

De

c-19

Ma

r-20

TTM Opex/MT YoY - RHSmn MT %

3,500

3,600

3,700

3,800

3,900

4,000

4,100

500

750

1,000

1,250

1,500

1,750

2,000

Ma

r-15

Jun

-15

Sep

-15

De

c-15

Ma

r-16

Jun

-16

Sep

-16

De

c-16

Ma

r-17

Jun

-17

Sep

-17

De

c-17

Ma

r-18

Jun

-18

Sep

-18

De

c-18

Ma

r-19

Jun

-19

Sep

-19

De

c-19

Ma

r-20

Input costs Freight

Fixed expenses Total opex -RHSRs /MT Rs /MT

Page | 5


Long term performance trends (TTM basis) continued

Ambuja’s unitary EBITDA continues to firm up and

are currently at 7-yr high levels

Ambuja’s EBITDA and PAT margins expanded

further to their highest levels in last six years!

Source: Company, HSIE Research Source: Company, HSIE Research

Peer Set Comparison

Company Mcap

(Rs bn)

CMP

(Rs/sh) Reco TP

EV/EBITDA EV/MT (Rs bn) Net D:E (x) RoE (%)

FY20E FY21E FY22E FY20E FY21E FY22E FY20E FY21E FY22E FY20E FY21E FY22E

UltraTech Cement 923 3,361 BUY 4,850 12.1 13.0 10.7 9.96 9.49 8.85 0.5 0.4 0.2 10.7 8.3 10.2

Shree Cement 663 19,022 REDUCE 17,900 18.1 19.7 16.5 14.39 13.24 12.87 (0.3) (0.3) (0.3) 12.4 7.6 9.6

Ambuja Cements 342 172 BUY 210 8.2 9.2 7.8 5.99 5.66 5.65 (0.7) (0.7) (0.7) 6.8 5.3 6.0

ACC 214 1,140 BUY 1,440 7.0 9.6 7.8 5.27 5.42 5.48 (0.4) (0.4) (0.3) 11.6 8.4 10.6

Ramco Cements 124 524 BUY 670 12.8 13.3 9.7 7.80 7.49 6.75 0.4 0.4 0.3 12.1 10.2 12.7

Dalmia Bharat 103 534 BUY 930 7.1 9.0 6.9 5.41 4.64 3.92 0.4 0.4 0.4 2.0 (1.2) 0.5

JK Cement 85 1,104 BUY 1,355 9.9 10.1 9.3 6.74 6.81 7.21 0.9 0.9 1.0 14.9 11.8 13.9

Star Cement 32 77 BUY 100 7.7 8.2 7.1 5.32 5.63 5.96 (0.1) (0.0) 0.1 15.7 13.5 16.1

JK Lakshmi 24 201 BUY 370 5.3 6.6 5.6 2.93 3.07 2.70 0.6 0.7 0.6 13.8 9.3 11.4

Orient Cement 8.3 41 BUY 85 6.4 6.6 5.9 2.58 2.64 3.01 1.1 1.2 1.3 4.7 4.6 12.3

Deccan Cements 2.8 203 BUY 370 3.3 3.1 3.5 1.16 1.04 1.67 (0.1) (0.1) 0.2 9.9 7.9 11.8

Source: Company, HSIE Research, For ACC and Ambuja, the financial years are CY19/CY20E/CY21E resp

(30)

(20)

(10)

0

10

20

30

40

0

200

400

600

800

1,000

1,200

Ma

r-15

Jun

-15

Sep

-15

De

c-15

Ma

r-16

Jun

-16

Sep

-16

De

c-16

Ma

r-17

Jun

-17

Sep

-17

De

c-17

Ma

r-18

Jun

-18

Sep

-18

De

c-18

Ma

r-19

Jun

-19

Sep

-19

De

c-19

Ma

r-20

TTM EBITDA/MT YoY - RHSRs/MT %

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Ma

r-15

Jun

-15

Sep

-15

De

c-15

Ma

r-16

Jun

-16

Sep

-16

De

c-16

Ma

r-17

Jun

-17

Sep

-17

De

c-17

Ma

r-18

Jun

-18

Sep

-18

De

c-18

Ma

r-19

Jun

-19

Sep

-19

De

c-19

Ma

r-20

TTM OPM TTM NPM%

Page | 6


Financials Consolidated Income Statement YE Dec (Rs mn) CY17 CY18 CY19 CY20E CY21E CY22E

Revenues 104,559 113,568 116,679 100,422 114,949 128,808

Growth % 13.7 8.6 2.7 (13.9) 14.5 12.1

Raw Material 15,062 16,826 17,293 15,014 17,475 19,856

Power & Fuel 22,331 25,458 25,864 20,956 24,154 27,366

Freight Expense 22,123 25,314 24,022 19,463 22,433 25,416

Employee cost 6,614 6,796 6,726 6,743 6,812 7,112

Other Expenses 19,465 20,221 21,286 19,036 21,441 23,939

EBITDA 18,965 18,953 21,489 19,210 22,635 25,119

EBIDTA Margin (%) 18.1 16.7 18.4 19.1 19.7 19.5

EBITDA Growth % 11.9 (0.1) 13.4 (10.6) 17.8 11.0

Depreciation 5,729 5,481 5,438 6,122 7,116 7,516

EBIT 13,236 13,472 16,051 13,088 15,519 17,603

Other Income (Including EO Items) 4,037 6,529 4,265 3,640 3,878 4,146

Interest 1,072 823 835 900 900 900

PBT 16,200 19,178 19,481 15,828 18,497 20,849

Tax 3,696 4,269 4,195 3,957 4,624 5,212

Minority Int - - - - - -

RPAT 12,505 14,909 15,286 11,871 13,873 15,636

EO (Loss) / Profit (Net Of Tax) 446 2,779 516 - - -

APAT 12,059 12,129 14,770 11,871 13,873 15,636

APAT Growth (%) 29.1 0.6 21.8 (19.6) 16.9 12.7


Consolidated Balance Sheet

YE Dec (Rs mn) CY17 CY18 CY19 CY20E CY21E CY22E

SOURCES OF FUNDS

Share Capital 3,971 3,971 3,971 3,971 3,971 3,971

Reserves And Surplus 195,761 206,154 218,081 225,321 232,247 240,937

Total Equity 199,732 210,125 222,052 229,292 236,218 244,908

Minority Int - - - - - -

Long-term Debt 241 397 353 353 353 353

Short-term Debt - - - - - -

Total Debt 241 397 353 353 353 353

Deferred Tax Liability 4,584 3,722 2,161 2,161 2,161 2,161

Long-term Liab+ Provisions 89 84 365 419 482 554

TOTAL SOURCES OF FUNDS 204,646 214,328 224,930 232,224 239,214 247,976

APPLICATION OF FUNDS

Net Block 57,220 56,636 58,125 79,502 78,887 77,371

Capital WIP 3,979 6,100 11,087 1,087 3,087 7,087

Goodwill - - - - - -

Other Non-current Assets 11,604 13,590 14,572 13,376 19,841 20,468

Total Non-current Investments 118,447 118,138 117,890 117,890 117,890 117,890

Total Non-current Assets 191,250 194,464 201,674 211,856 219,704 222,816

Inventories 10,525 12,778 9,541 9,629 11,023 13,410

Debtors 3,080 4,703 5,132 4,127 4,724 5,293

Cash and Cash Equivalents 34,971 33,300 46,995 46,406 46,842 55,333

Other Current Assets 6,346 6,623 6,566 4,232 4,232 4,232

Total Current Assets 54,922 57,403 68,234 64,394 66,820 78,268

Creditors 10,289 11,095 9,360 8,254 9,448 10,587

Other Current Liabilities & Provns 31,237 26,445 35,618 35,772 37,863 42,521

Total Current Liabilities 41,526 37,540 44,978 44,026 47,311 53,108

Net Current Assets 13,396 19,863 23,256 20,369 19,509 25,160

TOTAL APPLICATION OF FUNDS 204,646 214,328 224,930 232,224 239,214 247,976


Page | 7


Consolidated Cash Flow YE Dec (Rs mn) CY17 CY18 CY19 CY20E CY21E CY22E

Reported PBT 16,191 15,061 19,480 15,828 18,497 20,849

Non-operating & EO Items (3,663) (3,230) (3,983) (3,640) (3,878) (4,146)

Interest Expenses 1,072 823 835 900 900 900

Depreciation 5,729 5,481 5,438 6,122 7,116 7,516

Working Capital Change 2,136 (6,166) 3,877 3,549 (5,106) 2,285

Tax Paid (3,101) (6,251) (808) (3,957) (4,624) (5,212)

OPERATING CASH FLOW ( a ) 18,364 5,719 24,840 18,802 12,905 22,191

Capex (5,427) (5,936) (11,114) (17,500) (8,500) (10,000)

Free Cash Flow (FCF) 12,938 (217) 13,726 1,302 4,405 12,191

Investments 580 503 239 - - -

Non-operating Income 2,888 2,890 3,495 3,640 3,878 4,146

Others

INVESTING CASH FLOW ( b ) (1,959) (2,543) (7,380) (13,860) (4,622) (5,854)

Debt Issuance/(Repaid) (27) 216 - - - -

Interest Expenses (1,143) (513) (558) (900) (900) (900)

FCFE 11,767 (515) 13,168 402 3,505 11,291

Share Capital Issuance - - - - - -

Dividend (6,357) (4,498) (3,320) (4,631) (6,946) (6,946)

FINANCING CASH FLOW ( c ) (7,527) (4,795) (3,879) (5,531) (7,846) (7,846)

NET CASH FLOW (a+b+c) 8,878 (1,620) 13,582 (589) 436 8,491

EO Items, Others

Closing Cash & Equivalents 34,664 33,351 46,881 46,406 46,842 55,333

Key Ratios

CY17 CY18 CY19 CY20E CY21E CY22E

PROFITABILITY %

EBITDA Margin 18.1 16.7 18.4 19.1 19.7 19.5

EBIT Margin 12.7 11.9 13.8 13.0 13.5 13.7

APAT Margin 11.5 10.7 12.7 11.8 12.1 12.1

RoE 6.1 5.9 6.8 5.3 6.0 6.5

RoIC 19.2 18.3 20.5 15.3 16.3 17.7

RoCE 6.4 6.4 7.1 5.5 6.2 6.7

EFFICIENCY

Tax Rate % 22.8 22.3 21.5 25.0 25.0 25.0

Fixed Asset Turnover (x) 1.6 1.6 1.5 1.1 1.0 1.1

Inventory (days) 37 41 30 35 35 38

Debtors (days) 11 15 16 15 15 15

Other Current Assets (days) 22 21 21 15 13 12

Payables (days) 36 36 29 30 30 30

Other Current Liab & Provns (days) 109 85 111 130 120 120

Cash Conversion Cycle (days) (75) (43) (74) (95) (87) (85)

Net Debt/EBITDA (x) (1.8) (1.7) (2.2) (2.4) (2.1) (2.2)

Net D/E (0.8) (0.7) (0.7) (0.7) (0.7) (0.7)

Interest Coverage 12.3 16.4 19.2 14.5 17.2 19.6

PER SHARE DATA (Rs)

EPS 6.1 6.1 7.4 6.0 7.0 7.9

CEPS 9.0 8.9 10.2 9.1 10.6 11.7

Dividend 3.6 1.5 1.5 2.0 3.0 3.0

Book Value 100.6 105.8 111.8 115.4 118.9 123.3

VALUATION

P/E (x) 28.3 28.2 23.1 28.8 24.6 21.8

P/Cash EPS (x) 18.7 16.8 16.5 19.0 16.3 14.8

P/BV (x) 1.7 1.6 1.5 1.5 1.4 1.4

EV/EBITDA (x) 9.9 10.1 8.2 9.2 7.8 6.7

EV/MT (Rs bn) 6.38 6.45 5.99 5.66 5.65 5.38

Dividend Yield (%) 2.1 0.9 0.9 1.2 1.7 1.7

OCF/EV (%) 9.7 3.0 14.0 10.6 7.3 13.2

FCFF/EV (%) 6.9 (0.1) 7.8 0.7 2.5 7.2

FCFE/M Cap (%) 3.4 (0.2) 3.9 0.1 1.0 3.3


Page | 8


Rating Criteria

BUY: >+15% return potential

ADD: +5% to +15% return potential

REDUCE: -10% to +5% return potential

SELL: >10% Downside return potential

Date CMP Reco Target

10-Apr-19 227 NEU 220

2-May-19 221 NEU 223

10-Jul-19 211 NEU 223

26-Jul-19 215 NEU 230

22-Sep-19 215 NEU 230

10-Oct-19 192 BUY 230

18-Oct-19 207 BUY 240

10-Jan-20 208 BUY 240

23-Feb-20 205 BUY 245

2-Mar-20 205 BUY 245

5-Mar-20 208 BUY 245

17-Apr-20 170 BUY 210

28-Apr-20 172 BUY 210

From 2nd March 2020, we have moved to new rating system

RECOMMENDATION HISTORY

100

120

140

160

180

200

220

240

Ap

r-1

9

Ma

y-1

9

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

No

v-1

9

Dec

-19

Jan

-20

Feb

-20

Ma

r-2

0

Ap

r-2

0

Ambuja Cements TP

Page | 9


Disclosure:

We, Rajesh Ravi, MBA & Saurabh Dugar, MBA, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research

report accurately reflect our views about the subject issuer(s) or securities. HSL has no material adverse disciplinary history as on the date of publication of this

report. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this

report.

Research Analyst or his/her relative or HDFC Securities Ltd. does not have any financial interest in the subject company. Also Research Analyst or his relative

or HDFC Securities Ltd. or its Associate may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding

the date of publication of the Research Report. Further Research Analyst or his relative or HDFC Securities Ltd. or its associate does not have any material

conflict of interest.

Any holding in stock –No

HDFC Securities Limited (HSL) is a SEBI Registered Research Analyst having registration no. INH000002475.

Disclaimer:

This report has been prepared by HDFC Securities Ltd and is solely for information of the recipient only. The report must not be used as a singular basis of any

investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor;

readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. Each recipient of this

document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in securities of the companies

referred to in this document (including merits and risks) and should consult their own advisors to determine merits and risks of such investment. The

information and opinions contained herein have been compiled or arrived at, based upon information obtained in good faith from sources believed to be

reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy,

completeness or correctness. All such information and opinions are subject to change without notice. Descriptions of any company or companies or their

securities mentioned herein are not intended to be complete. HSL is not obliged to update this report for such changes. HSL has the right to make changes and

modifications at any time.

This report is not directed to, or intended for display, downloading, printing, reproducing or for distribution to or use by, any person or entity who is a citizen

or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, reproduction, availability or use would be

contrary to law or regulation or what would subject HSL or its affiliates to any registration or licensing requirement within such jurisdiction.

If this report is inadvertently sent or has reached any person in such country, especially, United States of America, the same should be ignored and brought to

the attention of the sender. This document may not be reproduced, distributed or published in whole or in part, directly or indirectly, for any purposes or in

any manner.

Foreign currencies denominated securities, wherever mentioned, are subject to exchange rate fluctuations, which could have an adverse effect on their value or

price, or the income derived from them. In addition, investors in securities such as ADRs, the values of which are influenced by foreign currencies effectively

assume currency risk. It should not be considered to be taken as an offer to sell or a solicitation to buy any security.

This document is not, and should not, be construed as an offer or solicitation of an offer, to buy or sell any securities or other financial instruments. This report

should not be construed as an invitation or solicitation to do business with HSL. HSL may from time to time solicit from, or perform broking, or other services

for, any company mentioned in this mail and/or its attachments.

HSL and its affiliated company(ies), their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell the securities of

the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a

market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any

other potential conflict of interests with respect to any recommendation and other related information and opinions.

HSL, its directors, analysts or employees do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments

made or any action taken on basis of this report, including but not restricted to, fluctuation in the prices of shares and bonds, changes in the currency rates,

diminution in the NAVs, reduction in the dividend or income, etc.

HSL and other group companies, its directors, associates, employees may have various positions in any of the stocks, securities and financial instruments dealt

in the report, or may make sell or purchase or other deals in these securities from time to time or may deal in other securities of the companies / organizations

described in this report.

HSL or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject

company for any other assignment in the past twelve months.

HSL or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from t

date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage

services or other advisory service in a merger or specific transaction in the normal course of business.

HSL or its analysts 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 HSL 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. HSL may

have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.

Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of

the subject company. We have not received any compensation/benefits from the subject company or third party in connection with the Research Report.

HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg

(East), Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066 Compliance Officer: Binkle R. Oza Email: [email protected] Phone: (022)

3045 3600

HDFC Securities Limited, SEBI Reg. No.: NSE, BSE, MSEI, MCX: INZ000186937; AMFI Reg. No. ARN: 13549; PFRDA Reg. No. POP: 11092018; IRDA

Corporate Agent License No.: CA0062; SEBI Research Analyst Reg. No.: INH000002475; SEBI Investment Adviser Reg. No.: INA000011538; CIN -

U67120MH2000PLC152193

HDFC securities

Institutional Equities

Unit No. 1602, 16th Floor, Tower A, Peninsula Business Park,

Senapati Bapat Marg, Lower Parel, Mumbai - 400 013

Board: +91-22-6171-7330 www.hdfcsec.com
mailto:[email protected]

28 april 2020 results review 1qcy20 ambuja cements cement -1qcy20...ambuja cements page | 3 :...

Documents