volume no. i issue no. 65 bosch ltd , 2016 - marketplace · pdf filebosch ltd, promoted by...
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BOSCHLTD NIFTY
One year Price Chart
Readying itself for next leg of growth
Bosch Ltd, promoted by Robert Bosch GmbH, is India’s leading auto
ancillary company. It is a dominant player in the diesel engine segment
with ~70% market share. In FY15, Bosch derived 88% & 12% of its
turnover from auto & non-auto segment respectively.
Investment Rationale
Pricing power to remain intact on the back of leadership position &
technological excellence: Bosch has a dominant ~70% market share in India for
diesel fuel injection products. It is the leading provider of groundbreaking
automotive technologies and services. Being a dominant player in fuel injection
(FI) segment, FI products contribute ~70% to the company’s revenue. Bosch
Group (parent) spends ~10% of its turnover every year on R&D. Further, Bosch
Group provides most of its technologies at a low royalty rate (1.6% of its
turnover) to the Indian arm (Bosch Ltd). Thus, Bosch Ltd, stands to benefit from
the technology leadership profile of its parent as implementation of new and
advanced technologies pick up ground in India. Hence, pricing power would be
maintained given its leadership in technology.
Early implementation of stricter emission norms to drive growth
ahead: In order to tackle air pollution, the government has announced to
upgrade to stricter fuel standards (BS VI) from 2020 (skipping BS V altogether).
BS VI was originally proposed to come in by 2024. Further, BS IV emission norms
would be applicable across India from April 2017. Therefore, Bosch emerges as
one of the main beneficiaries as it is a key supplier for fuel injection system for
vehicles. As per industry estimates, implementation of BS IV on pan-India basis
offers ~Rs 5,000 crores opportunity annually. Hence, we expect FI segment to
grow at a CAGR of 18.3% over FY15-FY18E. The commitment of government to
combat pollution would lead to content increase with common-rail in BS IV
(2017) and selective catalytic reduction (SCR) in BS VI (2020). Moreover, major
competitors such as Delphi and Denso do not have presence in India with SCR, a
key technology for BS VI. Going forward, this would boost realisations for Bosch.
Non-Auto business aids in providing revenue diversification: During
CY11-FY15, the non-auto business grew at a CAGR of 13.3%. While non-auto
business of Bosch Ltd contributes ~12% to the overall revenues, global non-auto
business’ contribution is ~32%. This business has a robust growth potential and
is expected to benefit from the pick up in the economic activity. We expect this
business to grow at a CAGR of 15.2% over FY15-FY18E.
Valuation: Bosch is in a sweet spot given its leadership position, technology
focus and unique positioning in the Indian auto industry. We expect revenue and
PAT to grow at a CAGR of 4.5% and 11.6% over FY15-FY18E. Further, we rate the
stock as ‘BUY’ assigning a forward P/E of 36.5x (given acceleration in growth
trajectory due to advanced emission norms) arriving at a target price of Rs.
22,083 which implies potential upside of ~10% for next 12 months.
Rating BUY CMP (Rs.) 20,082
Target (Rs.) 22,083
Potential Upside (%) 10
Duration Long Term
Face Value (Rs.) 10.0
52 week H/L (Rs.) 26,797/15,736
Adj. all time High (Rs.)
27,990
Decline from 52WH (%)
25.1
Rise from 52WL (%) 27.6
Beta 0.6
Mkt. Cap (Rs.Cr) 63,057
Market Data
Y/E FY15 (15 months)
FY16E FY17E FY18E
Revenue (Rs.Cr)
12,086 10,705 11,720 13,800
Adj. Profit (Rs.Cr)
1,366 1,188 1,505 1,900
EPS (Rs.) 434.9 378.4 479.2 605.0
P/E (x) 58.4 53.1 41.9 33.2
P/BV (x) 10.9 7.6 6.7 5.8
ROE (%) 20.0 15.2 17.0 18.7
Fiscal Year Ended
Apr 4th, 2016
BSE Code: 500530 NSE Code: BOSCHLTD Reuters Code: BOSH.NS Bloomberg Code: BOS:IN
Volume No. I Issue No. 65 Bosch Ltd
For private circulation only
Shareholding Pattern
Dec-15 Sep-15 Chg.
Promoters (%) 71.2 71.2 0.0
FII (%) 7.7 8.4 (0.7)
DII (%) 11.5 11.0 0.5
Others (%) 9.6 9.5 0.1
Bosch Ltd: Dominant player in the fuel injection segment
Bosch, promoted by Robert Bosch GmbH (holds 71.18% stake), is India’s leading auto ancillary
company. It is a dominant player in the diesel engine segment with ~70% market share. The
company has a broad-based product portfolio of diesel and gasoline fuel injection systems,
automotive aftermarket products, starter motors & generators, special purpose machines,
packaging machines, electric power tools, security systems etc. The automotive segment
contributes 88% to the overall revenues. The company also has one of the largest distribution
network of spare parts in the country, with aftermarket business accounting for ~20% of
revenues. Its key manufacturing facilities are located at Bengaluru, Nashik, Naganathapura,
Jaipur, Gangaikondan, Goa and Bidadi.
Segment-wise Revenue Mix
Business divisions of Bosch Ltd
Bosch’ Product Portfolio
Source: Company, In-house research
Source: Company, In-house research; *: Assuming shareholders nod for the sale of SG division
Automotives Products, 88%
Non-Auto, 12%
Bosch Ltd is a dominant
player in the diesel engine
segment with ~70% market
share.
For private circulation only
The Board has approved the
sale of its starter motor
&generators (SG) division to a
100% subsidiary of its parent
for Rs 486 crores. SG
constitutes ~10 % of Bosch Ltd
turnover and around 1% of
Bosch Ltd EBIT.
Diesel Systems Gasoline Systems Packaging Technology Power Tools
Automotive Starter Motors * Energy & Building Solns. Security Technology
Aftermarket & Generators & Thermo-technology
Business
Line
Segments
Products
Target Segment
Automotive
Gasoline Direct gasoline injection PV
Gasoline port injection
Diesel Common rail systems CV, PV, Tractors
Electric drives
Actuators All
Pumps & Valves
Electronics Electronic control units All
Mechatronic modules
Non-Automotive
Power tools
Surveying equipment, Range Finders Construction, Wood &
Metal working Impact wrenches, Drill Machines
Industrial equipment
Metal cutting machines
Industrial Assembly equipment
Packaging solutions
Form, fill & seal machines Pharmaceuticals, Food
Flow wrap machines
Security systems IP-based CCTV surveillance & Access Control
Systems
Hotels, Metro Rail,
Stadium
Fire Alarm & Intrusion systems
Cyclical recovery in CVs and PVs to drive strong growth
During FY11-15, automotive volumes (excluding 2Ws) grew at a CAGR of ~2%. Of late, there
has been a visible traction in the CV space (YTD FY16 growth was 9% YoY) aided by growing
demand from the infrastructure sector and the opening up of the mining sector. Going
forward, with meaningful recovery in overall capex cycle, CV segment in India is expected to
grow at a CAGR of ~14-17% over the next two years. With, CVs contributing about 50% to the
company’s revenues, demand recovery in the CV space coupled with BS-IV compliance on
pan-India basis by April 2017 bodes well for the company. Similarly, PV segment is expected to
grow at a CAGR of 11-13% over the next two years on the back of new product launches (PV
contributes nearly 15% to the overall revenues). While pressure on the tractor segment is
likely to continue in the near term, it may improve, going forward. After two consecutive
years of poor monsoon, it is predicted that India will receive normal rainfall this year. Besides,
government has recently taken several initiatives (crop insurance, enhanced allocation for
NREGA in Union Budget) to revive rural growth.
Engine parts constitute ~31%
of the total auto ancillary
demand.
For private circulation only
For private circulation only
Bosch caters to ~40% of Indian auto ancillary industry Bosch’s revenue growth is in sync with auto industry volumes
Source: ACMA, In-house research
Engine Parts, 31%
Drive Transmission
& Steering Parts, 19%
Body & Chassis,
12%
Suspension & Braking Parts,
12%
Equipments, 10%
Electrical Parts, 9%
Others, 7%
28.2
9.1-1.0 -5.8
5.0
39.613.9
6.0 1.010.0
-50.0
0.0
50.0
FY11 FY12 FY13 FY14 FY15
(%)
Automotive Industry Volume Growth (%)
Bosch Net Sales Growth (%)
Early implementation of stricter emission norms to drive growth ahead
In order to tackle air pollution, the government has announced to upgrade to stricter fuel
standards (BS VI). India will be the first country worldwide to skip one level of emission
legislation (BS V). Implementation of the BS V standard was earlier scheduled for 2019. BS VI,
originally proposed to come in by 2024 has been now advanced to 2020, instead. Further, BS
IV emission norms would be applicable across India from April 2017. Already, BS-IV is
applicable in almost all major cities including Delhi-NCR, Mumbai, Chennai, Kolkata and
Hyderabad.
Bosch emerges as one of the main beneficiaries as it is a key supplier for fuel injection system
for vehicles. Thus, implying incremental revenue opportunity for Bosch Ltd & we expect FI
segment to grow at a CAGR of 18.3% over FY15-FY18E. While almost all PVs sold in India are
already BS IV compliant, majority of the CVs are still running on BS III standard. Hence, the
incremental changes required in CV segment would give an impetus to company’s powertrain
business. As per industry estimates, implementation of BS IV on pan-India basis offers ~Rs
5,000 crores opportunity annually.
Nationwide rollout of BS Emission Norms in India: Timeline
Emission Norm Deadline
Bharat Stage I 2000
Bharat Stage II 2005
Bharat Stage III 2010
Bharat Stage IV 2017
Bharat Stage V Skipped
Bharat Stage VI 2020
Source: Ministry of Road Transport and Highways
The government has decided
to implement stricter emission
norms of Bharat Stage (BS) VI
from April 1, 2020, by skipping
BS V altogether.
Source: Company, In-house research
BS IV
Implementation BS III
Implementation
BS II
Implementation
Historically, it has been seen that whenever advanced emission norms are implemented
nation-wide, revenues rose sharply in that particular year. Generally, with each change in the
stage of an emission norm, there is an increase in content, leading to Bosch outperforming
the industry growth. In CY10, when BS III standard was implemented, Bosch’s revenues grew
~40% aided by a sharp recovery post the global financial crisis. Similarly, revenues grew ~25%
in CY05 when BS III standard was implemented.
Going forward, the government is planning to skip BS V standard by migrating directly to BS
VI from BS IV. This move would lead to content increase with common-rail in BS IV (2017)
and selective catalytic reduction (SCR) in BS VI (2020). The major competitors such as Delphi
and Denso do not have presence in India with SCR, a key technology for BS VI. Further, Bosch
sees opportunities in the Indian two-wheeler market as this segment is expected to be
covered under BS VI norms. Currently 2Ws in India are carburetor based & they too will be
required to shift to fuel injection systems.
Implementation of advanced emission norms augur well for Bosch’s sales growth
Source: Company, In-house research
Pricing power to remain intact on the back of leadership position & technological
excellence
Bosch has a dominant ~70% market share in India for diesel fuel injection products. It has
been the leading provider of groundbreaking automotive technologies and services for over
nine decades in India. Being a dominant player in fuel injection (FI) segment, FI products
contribute ~70% to the company’s revenue.
Bosch Ltd enjoys the benefits of its global parent’s strong technology dominance and,
thereby, has a higher new product acceptance rate among OEMs. Over years, Bosch Ltd has
imported newer technologies in the wake of emission changes, which have helped it to cater
to the Indian market. Bosch Ltd has generally followed the policy of importing the technology
and then gradually localising it as its acceptance increases in the market.
The Bosch Group enjoys a strong technological leadership in fuel injection systems and is a
trusted ancillary partner for most global auto manufactures. This is on account of the huge
R&D spend that is carried out by Bosch Global. In 2014, the Bosch Group spent ~5 billion
euros (around 10% of sales revenue) and filed 4,593 patents worldwide. Interestingly, Bosch
Group (parent) offers most of its technologies at a low royalty rate (~1.6% of its turnover) to
Bosch Ltd.
The major competitors of Bosch Global are Delphi & Denso Corp. Both these competitors
supply products in segments ranging from fuel injection systems to exhaust systems.
However, Bosch Global remains the leader in the space. More importantly, in India, both the
competitors have limited penetration.
EBITDA margins have remained steady above 15% for all years (except CY13) in the last 5
years. Given its leadership in technology, it is expected that pricing power would be
maintained going forward.
22% 23%28% 27%
13% 6% 5%
40%
20%6% 1% 10% 11% 9%
18%
CY0
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CY0
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CY0
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CY0
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CY0
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CY0
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CY0
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CY1
0
CY1
1
CY1
2
CY1
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FY1
5 (
Ad
j)
FY1
6E
FY1
7E
FY1
8E
For private circulation only
Bosch Group offers most of its
technologies at a low royalty
rate (~1.6% of its turnover) to
the Indian arm.
Bosch derives about 20% of
revenues from the automotive
aftermarket division
While non-auto business of
Bosch Ltd contributes ~12% to
the overall revenues, global non-
auto business’ contribution is
~32%.
Non-Auto business aids in providing revenue diversification
The revenue contribution of non-auto business to Bosch’s topline has risen from 10% in
CY11 to 12% in FY15. The non-auto business comprises of three verticals: Industrial
Technology, Consumer Goods (Power Tools & Household appliances) and Energy & Building
Technology. While non-auto business of Bosch Ltd contributes ~12% to the overall revenues,
global non-auto business’ contribution is ~32%. This business has a strong growth potential
and is expected to benefit from the pick up in the economic activity. We expect this business
to grow at a CAGR of 15.2% over FY15-FY18E.
Structure of Bosch’s non-auto business
Non-Auto’s contribution to the total revenues on the rise
Source: Company, In-house research; Note: FY15 is a 15 month period due to change in accounting year
Traction in Automotive aftermarket business augurs well
Bosch derives about 20% of revenues from the automotive aftermarket division. This
division is responsible for the supply, sales & distribution of all Bosch-branded automotive
parts in India and the SAARC region. The product range offered is the largest under one
brand in India and finds extensive application in 2Ws, 3Ws, cars, MUVs, LCVs, HCVs, buses,
tractors etc. The Bosch automotive aftermarket distribution network is the largest in India,
with over 1,000 authorized distributors, over 3,000 authorized workshops and direct
distribution reach beyond 60,000 semi-wholesale and retail points with presence in all the
key markets.
The products marketed by this division include diesel and gasoline fuel injection system &
components, alternators, starter motors, spark plugs, automotive filters, automotive
batteries, automotive belts, automotive software,2& 3 wheeler clutch plates etc.
Besides, it is responsible for Bosch service workshop concepts for vehicle service and
maintenance. It manages the largest independent service network in India with over 3,000
workshops/ service network comprising over 500 Bosch Car Service, 1,000 Bosch Diesel
Service Centers, 600 Electric Modules, 250 Express Car Service and 150 Express Bike Service
in India, covering ~1,200 cities. Hence, we expect this division to grow at a CAGR of 18% over
FY15-FY18E led by new products introduction, increased use of electronics coupled with
increased preference for authorised services.
11%12% 12% 12%
13% 13%
5%
8%
11%
14%
CY12 CY13 FY15 FY16E FY17E FY18E
For private circulation only
Non-Auto
Consumer
Goods
(Power Tools
Industrial
Technology
Energy &
Building
Technology
Industrial
Equipment
Packaging
Technology Security
Technology
Bosch
Energy &
Building
Solutions
Thermotech
nology
We expect top-line of the company to grow at a CAGR of 4.5% over FY15-FY18E.
Automotive Aftermarket revenues to grow at a CAGR of 18% during FY15-FY18E
Source: Company, In-house research; Note: FY15 is a 15 month period due to change in accounting year
Overall EBITDA margins to expand significantly, going forward
Engine parts are impacted the most by emission norm changes. We believe there is significant
scope of margin expansion in the coming years led by the implementation of advanced
emission norms (BS IV in 2017 & BS VI in 2020) across the country. The stricter norms would
lead to content increase with common-rail in BS IV (2017) and SCR in BS VI (2020). Given
limited competition in this space, we expect realisations to increase for Bosch. Further, the
sale of starter motor & generator division would provide fillip to the overall margins (this
division constitutes ~10% of Bosch Ltd turnover and merely 1% of Bosch Ltd EBIT). Thus, we
believe Bosch’s EBITDA margin to grow to 19.5% in FY18E from 16.4% in FY15.
Revenue and PAT to grow at a CAGR of 4.5% and 11.6% respectively over FY15-18E
During FY15-FY18E, we expect the top-line of the company to grow at a CAGR of 4.5% on the
back of regulation requirements (BS IV in 2017 & BS VI in 2020) which will lead to greater-
than-normal content increase. Further, we estimate 11.6% CAGR in Adjusted PAT over FY15-
18E mainly on account of EBITDA margin expansion. Moreover, we believe that the company
would report improvement in its ROE and ROCE on the back of healthy profitability coupled
with strong revenue growth. While ROE is likely to improve from 15.2% in FY16E to 18.7% in
FY18E, ROCE is projected to increase from 22.6% in FY16E to 27.1% in FY18E.
Revenue to grow at a CAGR of 4.5% over FY15-FY18E Return Ratios expected to improve
Source: Company, In-house research; *: FY15 is a 15 month period due to change in accounting year
16.4% 16.5%18.5% 19.5%
11.3% 11.1%12.8% 13.8%
0%
5%
10%
15%
20%
25%
- 2,000 4,000 6,000 8,000
10,000 12,000 14,000 16,000
FY15* FY16E FY17E FY18E
Rs.
Cro
res
Revenue EBITDA Margin (%) Adj. PAT Margin (%)
20.0%
15.2%17.0%
18.7%
28.9%
22.6%24.6%
27.1%
0%
5%
10%
15%
20%
25%
30%
35%
FY15* FY16E FY17E FY18E
ROE (%) ROCE (%)
For private circulation only
Key Risks:
1 Slowdown in CV space may affect the revenue growth.
2 Any delay in implementation of advanced emission norms.
3 Upward revision in royalty rates may impact margins.
1,917 1,965 2,024 2,327 2,746 3,323
500
1,500
2,500
3,500
CY12 CY13 FY15 FY16E FY17E FY18E
(Rs.
Cro
res)
Balance Sheet
Profit & Loss Account (Consolidated)
Y/E (Rs.Cr) FY15* FY16E FY17E FY18E
Total operating
Income 12,086 10,705 11,720 13,800
Raw Material cost 6,457 5,654 6,179 7,169
Employee Cost 1,663 1,375 1,505 1,772
Other operating
expenses 1,984 1,906 1,870 2,175
EBITDA 1,981 1,770 2,166 2,685
Depreciation 548 399 448 493
EBIT 1,433 1,372 1,719 2,192
Interest cost 14 5 2 2
Other income 565 399 464 563
Profit before tax 1,984 1,765 2,181 2,753
Tax 618 577 676 854
Profit after tax 1,366 1,188 1,505 1,900
Minority Interests - - - -
P/L from Associates - - - -
Adjusted PAT 1,366 1,188 1,505 1,900
E/oincome/ (Expense) (28) - - -
Reported Profit 1,338 1,188 1,505 1,900
Y/E (Rs.Cr) FY15* FY16 FY17E FY18E
Paid up capital 31 31 31 31
Reserves and
Surplus 7,316 8,224 9,390 10,883
Net worth 7,347 8,256 9,421 10,915
Minority Interest - - - -
Total Debt 56 35 15 15
Other non-current
liabilities 479 526 579 637
Total Liabilities 7,881 8,817 10,015 11,567
Total fixed assets
(inc CWIP) 1,244 1,345 1,497 1,605
Goodwill - - - -
Investments 2,890 2,890 2,890 2,890
Net Current
assets 3,112 3,925 4,946 6,364
Other non-current
assets 636 658 682 709
Total Assets 7,881 8,817 10,015 11,567
Cash Flow Statement
Profit & Loss Account
Profit & Loss Account (Consolidated)
Y/E (Rs.Cr) FY15* FY16E FY17E FY18E
Pretax profit 1,956 1,765 2,181 2,753
Depreciation 548 399 448 493
Chg in Working
Capital 132 (224) (130) (257)
Others (551) (394) (462) (561)
Tax paid (691) (577) (676) (854)
Cash flow from
operating activities 1,394 969 1,360 1,574
Capital expenditure (409) (500) (600) (600)
Chg in investments (446) - - -
Other investing
cashflow (325) 399 464 563
Cash flow from
investing activities (1,180) (101) (136) (37)
Equity
raised/(repaid) - - - -
Debt raised/(repaid) (28) (20) (20) -
Dividend paid (202) (280) (339) (406)
Other financing
activities (9) (5) (2) (2)
Cash flow from
financing activities (238) (305) (361) (409)
Net chg in cash (23) 563 863 1,129
* Change in accounting year, FY15 is a 15 month period
Note: Assuming company to receive shareholders approval for the sale of starter motors
& generators division. But, we haven’t included any Profit/Loss from the sale of this
division. Further, assuming the company to carve out this division by the end of June
2016.
Y/E FY15* FY16E FY7E FY18E
Valuation (x)
P/E 58.4 53.1 41.9 33.2
EV/EBITDA 39.4 34.3 27.6 21.8
EV/Net Sales 6.6 5.8 5.2 4.4
P/B 10.9 7.6 6.7 5.8
Per share data (Rs.)
EPS 434.9 378.4 479.2 605.0
DPS 85.0 74.0 89.7 107.5
BVPS
2,339.8
2,629.1
3,000.4
3,476.0
Growth (%)
Net Sales 37.9 (11.3) 9.5 17.8
EBITDA 53.7 (10.7) 22.4 24.0
Net Profit 54.4 (13.0) 26.6 26.3
Operating Ratios (%)
EBITDA Margin 16.4 16.5 18.5 19.5
EBIT Margin 11.9 12.8 14.7 15.9
PAT Margin 11.3 11.1 12.8 13.8
Return Ratios (%)
RoE 20.0 15.2 17.0 18.7
RoCE 28.9 22.6 24.6 27.1
Turnover Ratios (x)
Net Sales/GFA 2.6 2.1 2.0 2.1
Sales/Total Assets 1.2 1.0 0.9 1.0
Sales/Working Capital 10.0 7.8 7.4 7.6
Liquidity&Solvency Ratios (x)
Current Ratio 2.2 2.6 2.8 3.1
Net Debt/Equity (0.3) (0.3) (0.4) (0.4)
For private circulation only
Key Ratios
Rating Criteria
Large Cap. Return Mid/Small Cap. Return
Buy More than equal to 10% Buy More than equal to 15%
Hold Upside or downside is less than 10% Accumulate* Upside between 10% & 15%
Reduce Less than equal to -10% Hold Between 0% & 10%
Reduce/sell Less than 0%.
* To satisfy regulatory requirements, we attribute ‘Accumulate’ as Buy and ‘Reduce’ as Sell.
Disclaimer:
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Recipient shall not further distribute the report to a third party for a commercial consideration as this report is being furnished to the recipient solely for the purpose of information. Dion has taken steps to ensure that facts in this report are based on reliable information but cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this report. It is hereby confirmed that wherever Dion has employed a rating system in this report, the rating system has been clearly defined including the time horizon and benchmarks on which the rating is based. Descriptions of any company or companies or their securities mentioned herein are not intended to be complete and this report 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. Dion has not taken any steps to ensure that the securities referred to in this report are suitable for any particular investor. This report is not to be relied upon in substitution for the exercise of independent judgment. Opinions or estimates expressed are current opinions as of the original publication date appearing on this report and the information, including the opinions and estimates contained herein, are subject to change without notice. Dion is under no duty to update this report from time to time. Dion or its associates including employees engaged in preparation of this report and its directors 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 securities, changes in the currency rates, diminution in the NAVs, reduction in the dividend or income, etc. The investments or services contained or referred to in this report may not be suitable for all equally and it is recommended that an independent investment advisor be consulted. In addition, nothing in this report constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to individual circumstances or otherwise constitutes a personal recommendation of Dion. REGULATORY DISCLOSURES:
Dion is engaged in the business of developing software solutions for the global financial services industry across the entire
transaction lifecycle and inter-alia provides research and information services essential for business intelligence to global companies
and financial institutions. Dion is listed on BSE Limited (BSE) and is also registered under the SEBI (Research Analyst) Regulations,
2014 (SEBI Regulations) as a Research Analyst vide Registration No. INH100002771. Dion’s activities were neither suspended nor has
it defaulted with requirements under the Listing Agreement and / or SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 with the BSE in the last five years. Dion has not been debarred from doing business by BSE / SEBI or any other
authority.
In the context of the SEBI Regulations, we affirm that we are a SEBI registered Research Analyst and in the course of our business,
we issue research reports /research analysis etc that are prepared by our Research Analysts. We also affirm and undertake that no
disciplinary action has been taken against us or our Analysts in connection with our business activities.
In compliance with the above mentioned SEBI Regulations, the following additional disclosures are also provided which may be
considered by the reader before making an investment decision:
For private circulation only
1. Disclosures regarding Ownership
Dion confirms that:
(i) Dion/its associates have no financial interest or any other material conflict in relation to the subject company (ies)
covered herein at the time of publication of this report.
(ii) It/its associates have no actual / beneficial ownership of 1% or more securities of the subject company (ies) covered
herein at the end of the month immediately preceding the date of publication of this report.
Further, the Research Analyst confirms that:
(i) He, his associates and his relatives have no financial interest in the subject company (ies) covered herein, and they
have no other material conflict in the subject company at the time of publication of this report.
(ii) he, his associates and his relatives have no actual/beneficial ownership of 1% or more securities of the subject
company (ies) covered herein at the end of the month immediately preceding the date of publication of this report.
2. Disclosures regarding Compensation:
During the past 12 months, Dion or its Associates:
(a) Have not managed or co-managed public offering of securities for the subject company (b) Have not received any compensation
for investment banking or merchant banking or brokerage services from the subject company (c) Have not received any
compensation for products or services other than investment banking or merchant banking or brokerage services from the subject .
(d) Have not received any compensation or other benefits from the subject company or third party in connection with this report
3. Disclosure regarding the Research Analyst’s connection with the subject company:
It is affirmed that I, Rohit Joshi employed as Research Analyst by Dion and engaged in the preparation of this report have not served
as an officer, director or employee of the subject company
4. Disclosure regarding Market Making activity:
Neither Dion /its Research Analysts have engaged in market making activities for the subject company.
Copyright in this report vests exclusively with Dion. Dion Global Solutions Limited, Registered Office: 54, Janpath, New Delhi – 110001, India. CIN: L74899DL1994PLC058032, Website:
www.dionglobal.com. Scrip code with BSE: 526927. SEBI Registration No. INH100002771. Compliance Officer Details: Ms. Rinki Batra,
Tel.: 91-120-4894813, Fax No. 0120-4894854 or E-mail: [email protected]
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