February 06, 2025

RESULT REPORT Q3 FY25 | Sector: Building Materials

Reco : BUY
Somany Ceramics Ltd CMP
Target Price
:
:
Rs 505
Rs 728
Potential
Benign performance as expected, lucrative Return
: +44.1%

valuations drive BUY rating! Stock data (as on Feb 6, 2025)

Nifty 23,603
Result Synopsis 52 Week h/l (Rs) 873 / 472
Market cap (Rs/USD mn) 21,117 / 241
Subdued demand scenario keeps Somany Ceramics Ltd (SOMC) performance under Outstanding Shares (mn) 41
pressure. Company’s tiles revenue grew marginally by 3.5%YoY to Rs5.46Bn wherein 6m Avg t/o (Rs mn): 45
volumes increased by 4.5%YoY & realizations remained flattish over similar period. Div yield (%): 0.5
However, volume and revenue numbers were marginally better than our estimates. Bloomberg code: SOMC IN
Operating margins for the quarter stood at 8.3% Vs est of 8.4% and as compared to NSE code: SOMANYCERA
9.6%/8.4% margins in Q3FY24/Q2FY25 respectively. Lower volume off-take and
reduction in ASP weighed on operating margins. Net profit degrew sharply largely due Stock performance
to higher tax rates which as %PBT came in at 39% Vs 31%/30% in Q3FY24/Q2FY25 SOMANYCERA Nifty
130
respectively. Bathware biz revenue increased by 9%YoY to Rs710Mn.

Management Guidance 110

Company maintained their guidance of mid to high-single digit growth and expect 90
margins to improve with better utilizations. Brand spends will continue to be ~2.5% of
70
sales.

Our View 50
Feb-24 Jun-24 Oct-24 Feb-25

We have revised our FY25E’s volume growth estimate lower owing to lackluster 1M 3M 1Y
performance in 9MFY25 due to lower demand and higher competitive intensity from Absolute return -20.5% -24.7% -31.2%
Morbi. We expect volumes to grow by 7%CAGR over FY24-FY27E. However, with
expected reduction in price, we believe tile revenue to grow by 6% CAGR over FY24- Shareholding pattern (As of Dec’24 end)
FY27E. We have also revised our margin expectation lower by ~100bps for coming 2- Promoter 55.0%
years to 9.5% in FY26E & FY27E. Hence, our EPS has been revised downwards by 17% FII+DII 25.2%
for both FY26E and FY27E to Rs30.5 and Rs36.4 respectively. At CMP, the stock Others 19.8%
trades at P/E(x) of 14x on FY27E EPS. Given the lucrative multiples, we maintain our
∆ in stance
BUY rating on the stock, with a revised target price of Rs728 by valuing the company
(1-Yr) New Old
at P/E(x) if 20x on FY27E EPS. Rating BUY BUY
Target Price 728 873
Result Highlights
∆ in earnings estimates
 Revenue for the quarter stood at Rs6.44Bn, a growth of 5%YoY. FY25E FY26E FY27E
EPS (New) 19.1 30.5 36.4
 EBITDA margins came in at 8.3% Vs 9.6%/8.4% in Q3FY24/Q2FY25 respectively.
EPS (Old) 27.6 36.9 43.6
Absolute EBITDA degrew by 9%YoY to Rs535Mn. % change -30.8% -17.4% -16.6%
 Net profit stood at Rs97Mn, a decline of 47% YoY (excluding exceptional
Financial Summary
gain/loss). The profit declined due to higher tax rate with came in at 39% Vs
(Rs mn) FY25E FY26E FY27E
31%/30% in Q3FY24/Q2FY25 respectively. Net Revenue 26,771 29,330 32,213
YoY Growth 3.3 9.6 9.8
 Tile volumes grew by 4.5%YoY while ASP remained flattish YoY & consequently
EBITDA 2,276 2,786 3,060
tile revenue increased marginally by 3.5%YoY. 8.5 9.5 9.5
EBITDA (%)
PAT 785 1,250 1,492
YoY Growth (21.1) 59.4 19.3
ROE 10.4 14.9 15.4
Exhibit 1: Actual vs estimates
EPS 19.1 30.5 36.4
Estimate % Variation P/E 26.4 16.6 13.9
Rs mn Actual Remarks BV/Share 191.7 219.1 252.3
YES Sec Consensus YES Sec Consensus
P/BV 2.6 2.3 2.0
Sales 6,449 6,107 6,391 5.6 0.9
Revenue
EBITDA 535 513 554 4.2 (3.5) above UDIT GAJIWALA
EBITDA estimates, Lead Analyst
8.3 8.4 8.7 -11 bps -38 bps margin in-
Margin (%)
line.  +91 22 6992 2934 / 35 / 36
Adjusted PAT 97 150 185 (35.5) (47.6)
Source: Company, YES Sec SHALIN DAMANI, Associate

For important information about YES Securities (India) Ltd. and other disclosures, refer to the end of this material. 1
 Somany Ceramics Ltd

 Share of Own/JV/outsourced in volume terms stood at 32%/33%/35% and 31%/37%/32%

in revenue terms respectively.
 Bathware revenue grew by 9%YoY to Rs710Mn.
 Utilization of tiles/sanitaryware/bathware came in at 86%/87%/109% respectively during
the quarter.

Exhibit 2: Quarterly Snapshot:

Q2 Q3 Q4 Q1 Q2 Q3 9M 9M
Rs mn % yoy % qoq % yoy
FY24 FY24 FY24 FY25 FY25 FY25 FY24 FY25
Revenue 6,552 6,121 7,375 5,786 6,663 6,449 5.3 (3.2) 18,538 18,898 1.9
Expenditure 5,910 5,531 6,581 5,296 6,103 5,914 6.9 (3.1) 16,800 17,314 3.1
- RM 2,934 2,728 3,561 2,485 3,228 2,921 7.1 (9.5) 8,419 8,633 2.5
- Staff Cost 822 794 867 868 891 894 12.6 0.3 2,377 2,653 11.6
- Power Cost 1,379 1,252 1,399 1,276 1,234 1,307 4.3 5.9 3,820 3,817
- Other Cost 775 757 754 668 750 792 4.6 5.6 2,185 2,210 1.2
Operating Profit 642 590 795 490 560 535 (9.4) (4.5) 1,738 1,584 (8.8)
OPM(%) 9.8 9.6 10.8 8.5 8.4 8.3 -135 bps -11 bps 9.4 8.4 -99 bps
Other Income 38 28 16 21 13 18 (35.2) 37.9 90 52 (42.0)
Depreciation 176 188 193 192 192 228 21.3 19.1 532 612 14.9
Interest 110 109 134 135 135 133 22.0 (1.6) 330 403 21.9
Exceptional - 13 33 - - (20) - - (53) (20) -
PBT 394 334 516 184 247 172 (48.6) (30.3) 913 602 (34.0)
Tax 98 100 177 61 74 75 (25.1) 2.3 257 210 (18.4)
PAT 296 234 339 123 173 97 (58.7) (44.2) 655 393 (40.1)
OCI - - 5 - (2) - - - - (2) -
Reported PAT 296 234 344 123 172 97 (58.7) (43.7) 655 391 (40.4)
Source: Company, YES Sec

Exhibit 3: Operational Numbers:

Q2 Q3 Q4 Q1 Q2 Q3 9M 9M
Particulars % yoy % qoq % yoy
FY24 FY24 FY24 FY25 FY25 FY25 FY24 FY25
Revenue (Rs mn)
Own 2,089 1,857 2,100 1,726 1,851 1,698 (8.5) (8.2) 6,054 5,275 (12.9)
JV 1,961 1,999 2,234 2,037 2,247 2,000 0.1 (11.0) 5,719 6,283 9.9
Other 1,664 1,419 1,780 1,210 1,584 1,761 24.0 11.2 4,338 4,554 5.0
Total Tile 5,714 5,275 6,115 4,972 5,681 5,459 3.5 (3.9) 16,110 16,112 0.0
Bathware 636 653 796 605 701 710 8.8 1.3 1,867 2,017 8.0
Others 176 153 183 181 233 231 51.5 (0.9) 471 645 37.1
Volume (msm)
Own 6.3 5.8 6.7 5.5 6.0 5.6 (4.3) (7.2) 18.6 17.1 (8.3)
JV 5.8 6.1 6.7 6.1 6.6 5.6 (9.0) (15.0) 17.2 18.3 6.2
Other 5.2 4.4 5.5 3.9 5.3 5.9 35.0 13.1 13.6 15.1 11.4
Total Tile 17.4 16.3 18.9 15.6 17.8 17.1 4.5 (4.1) 49.4 50.4 2.1
Realization (Rs)
Own 330 320 314 312 309 306 (4.4) (1.1) 325 309 (4.9)
JV 336 326 333 334 341 358 9.9 4.8 332 344 3.5
Other 321 323 325 309 302 296 (8.1) (1.7) 320 302 (5.7)
Blended Tile 329 323 324 320 319 320 (1.0) 0.2 326 319 (2.1)
Source: Company, YES Sec

For important information about YES Securities (India) Ltd. and other disclosures, refer to the end of this material. 2
 Somany Ceramics Ltd

KEY CON-CALL HIGHLIGHTS

 Management has maintained their guidance of mid to high single digit for FY25E and high
single to low double digit for FY26E with EBITDA margins to improve with increase in
capacity utilization.
 Tile exports declined from Rs200Bn in FY24 to ~Rs13-14Bn for FY25E which has put
pressure on Morbi. ~70% of Morbi’s domestic sales are to smaller builders who are extremely
price sensitive. Owing to deferred purchases in real estate, Morbi has seen negative growth
in the quarter which has resulted in some player to shut operations completely and some to
shut operations for the month.
 Gas price increased by 4% due to adverse dollar movement and increase in spot natural
prices. Prices should be impacted further by 1-2% as dollar moved from Rs84-85 to Rs87-88
in Q3FY25.
 Natural gas price for the company has remained fairly stable in Q3FY25 at Rs45. The same
was Rs44 in Q3FY24 and FY24. North/West/South gas prices also remained stable at
Rs43/49/51 respectively.
 Ceramic/PVT/GVT contributed 32%/28%/38% of sales. GVT contribution is expected to
cross 40% going ahead.
 Government/Private (builders)/Exports/Retail contributes 10-12%/7-8%/2-3%/77-80% to
sales respectively. Private sales are expected to increase by 2-3% as company has received
orders from builders that would be at a lower pricing. However, the same would be offset by
an increase in capacity utilization to cater to the orders.
 Capacity utilization for sanitaryware/faucets was 87%/109% respectively for Q3FY25. Small
capex is planned for sanitaryware to expand capacity within next 12-18 months. Fittings is
already in the process of expansion.
 Somany Max plant operated at a capacity utilization of 51% that is expected to increase in
Mar/Apr’25 with the new upcoming launches. At optimum capacity utilization plant can do
topline of Rs2.5Bn which is currently at 50% (~Rs1.25Bn). The plant is expected to be
profitable by next quarter.
 Company has added 134 net dealers and 46 showrooms in 9MFY25.
 Brand spends were 2.5% of sales and management plans to maintain the same ratio.
 One-off line balancing and advanced depreciation of some new machinery increased total
depreciation by Rs30-40Mn. The normalized run-rate would be Rs190-200Mn.
 Net debt was Rs2.99Bn of which ~78% was in 2 entities viz. Rs1.15Bn in Sudha Somany &
Rs1.2Bn in Somany Max. Asset turnover was at 2.3x.
 Somany has acquired 52% stake in Dura Build Care Pvt Ltd for Rs105Mn and will increase
the same to 100% in next 3-5 years. Dura Build Care is involved in the construction chemical
business that will strengthen Somany’s adhesive & grout portfolio. Dura Build Care’s
manufacturing facility is in Bahadurgarh itself.

For important information about YES Securities (India) Ltd. and other disclosures, refer to the end of this material. 3
 Somany Ceramics Ltd

QUARTERLY TRENDS

Exhibit 4: Tiles volume grew by 4.5%YoY… Exhibit 5: Tile revenue increased by 3.5%YoY…
msm Rs Mn
Own JV Other Own JV Other
20 7,000

6,000
16
5,000
12 4,000

8 3,000

2,000
4
1,000

0 0
Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25

Source: Company, YES Sec Source: Company, YES Sec

Exhibit 6: Blended ASP stood at Rs320/sqm… Exhibit 7: Tiles contributed to 85% of revenue…
Rs/sqm Rs Mn
Own JV Other Blended Tile Bathware Others
8,000
370

350
6,000
330

310 4,000

290
2,000
270

250 0
Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25

Source: Company, YES Sec Source: Company, YES Sec

Exhibit 8: Blended margin declined to 8.3%… Exhibit 9: Net profit stood at Rs97Mn…
Rs Mn Rs Mn
EBITDA Margin% % PAT Margin% %
1,000 12% 400 5%
350
10%
800 4%
300
8%
600 250 3%
6% 200
400 150 2%
4%
100
200 1%
2%
50
0 0% 0 0%
Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25

Source: Company, YES Sec Source: Company, YES Sec

For important information about YES Securities (India) Ltd. and other disclosures, refer to the end of this material. 4
 Somany Ceramics Ltd

FINANCIALS
Exhibit 10: Income Statement
Y/e 31 Mar (Rs mn) FY23 FY24 FY25E FY26E FY27E
Sales 24,785 25,914 26,771 29,330 32,213
COGS 10,694 11,979 12,260 13,324 14,845
GP 14,091 13,934 14,511 16,006 17,368
GP% 56.9 53.8 54.2 54.6 53.9
Employee Cost 3,012 3,244 3,568 3,996 4,476
Power & Fuel 6,523 5,219 5,375 5,537 5,703
Other Cost 2,669 2,939 3,292 3,687 4,129
EBITDA 1,887 2,533 2,276 2,786 3,060
EBITDA% 7.6 9.8 8.5 9.5 9.5
Finance Cost 404 465 503 465 390
Depreciation 679 725 787 814 841
Other Income 145 106 135 160 160
PBT 950 1,449 1,121 1,667 1,989
Tax 259 434 336 417 497
PAT 669 994 785 1,250 1,492
PAT% 2.7 3.8 2.9 4.3 4.6
EPS 16 24 19 30 36
Source: Company, YES Sec

Exhibit 11: Balance Sheet

Y/e 31 Mar (Rs mn) FY23 FY24 FY25E FY26E FY27E
Share Capital 85 82 82 82 82
Reserves 7,785 7,119 7,777 8,900 10,264
Non-current Liab 3,027 3,086 3,086 2,809 2,532
ST Borrowings 3,033 1,494 1,494 1,271 1,048
Payables 3,777 5,593 2,646 2,876 3,204
Other current Liab 1,197 1,205 1,205 1,205 1,205
Total Equity & Liab 20,111 19,838 17,548 18,401 19,594
Gross Block 12,660 14,488 14,988 15,488 15,988
Acc Dep 3,013 3,738 4,525 5,339 6,180
Net Block 9,647 10,750 10,463 10,149 9,808
CWIP 473 96 96 96 96
Other Noncurrent Assets 495 321 321 321 321
Inventory 3,915 3,466 1,640 1,782 1,985
Receivables 2,683 3,372 3,484 3,817 4,192
Cash & Bank 1,546 709 421 1,113 2,068
Other Current Assets 524 522 522 522 522
Total Assets 20,111 19,838 17,548 18,401 19,594
Source: Company, YES Sec

For important information about YES Securities (India) Ltd. and other disclosures, refer to the end of this material. 5
 Somany Ceramics Ltd

Exhibit 12: Cash Flow

Y/e 31 Mar (Rs mn) FY23 FY24 FY25E FY26E FY27E
PBT 929 1,428 1,121 1,667 1,989
Depreciation & Amortization 679 725 787 814 841
Finance cost 404 465 503 465 390
(Incr)/Decr in Working Capital (9) 168 (123) (25) (25)
Taxes (247) (340) (336) (417) (497)
Cash from ops. 1,646 3,934 842 2,284 2,473
(Incr)/ Decr in PP&E (1,765) (1,615) (500) (500) (500)
Cash Flow from Investing (909) (1,229) (500) (500) (500)
(Decr)/Incr in Borrowings 135 (1,563) - (500) (500)
Finance cost (385) (470) (503) (465) (390)
Cash Flow from Financing (214) (3,560) (630) (1,093) (1,018)
Incr/(Decr) in cash 523 (855) (288) 691 955
Cash and cash equivalents at beg of year 937 1,447 709 421 1,113
Cash and cash equivalents at end of year 1,460 592 421 1,113 2,068
Source: Company, YES Sec

Exhibit 13: Ratios

Key Ratios FY23 FY24 FY25E FY26E FY27E
Growth Matrix (%)
Revenue growth 18.3 4.6 3.3 9.6 9.8
EBITDA growth (8.6) 34.2 (10.2) 22.4 9.8
EBIT growth (13.2) 41.3 (15.2) 31.3 11.6
PAT growth (28.4) 48.6 (21.1) 59.4 19.3
Profitability ratios (%)
GP margin 56.9 53.8 54.2 54.6 53.9
EBITDA margin 7.6 9.8 8.5 9.5 9.5
EBIT margin 5.5 7.4 6.1 7.3 7.4
PAT margin 2.7 3.8 2.9 4.3 4.6
RoCE 12.9 18.1 15.3 18.8 19.3
RoE 8.8 13.2 10.4 14.9 15.4
Per share values
EPS 15.8 24.3 19.1 30.5 36.4
CEPS 31.7 41.9 38.3 50.4 56.9
BVPS 185.4 175.6 191.7 219.1 252.3
Valuation ratios (x)
P/E 31.0 23.8 26.4 16.6 13.9
P/CEPS 15.4 13.8 13.2 10.0 8.9
P/B 2.6 3.3 2.6 2.3 2.0
EV/EBITDA 12.8 10.4 10.4 8.1 6.9
Leverage ratios (x)
Debt/ Equity 0.6 0.5 0.4 0.3 0.2
Net debt/Equity 0.4 0.4 0.4 0.2 0.0
Net debt/EBITDA 1.8 1.0 1.3 0.6 0.1
Int coverage 3.4 4.1 3.2 4.6 6.1
NWC days
Receivables 40 47 47 47 47
Inventory 58 49 49 49 49
Payables 56 79 79 79 79
Source: Company, YES Sec

For important information about YES Securities (India) Ltd. and other disclosures, refer to the end of this material. 6
 Somany Ceramics Ltd

Exhibit 14: 1-year forward P/E (x) chart

(x) 12m fwd PE Average -1 Std. Dev.
100.0 +1 Std. Dev. -2 Std. Dev. +2 Std. Dev.
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
2019 2020 2021 2022 2023 2024 2025

Source: Company, YES Sec

Recommendation Tracker

SOMANYCERA Reco Nifty (RHS)

910 Buy 28,000

810 745
Buy
653 26,000
710
610 24,000
510
22,000
410
310 20,000
210
18,000
110
10 16,000
Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25

For important information about YES Securities (India) Ltd. and other disclosures, refer to the end of this material. 7
 Somany Ceramics Ltd
STANDARD DISCLAIMER:

YES Securities (India) Limited, Registered Address: 2nd Floor, North Side, YES BANK House, Off Western Express Highway,
Santacruz East, Mumbai - 400055. Maharashtra, India | Correspondence Add: 7th Floor, Urmi Estate Tower A, Ganpatrao
Kadam Marg, Opp. Peninsula Business Park, Lower Parel (West), Mumbai – 400 013, Maharashtra, India. | Website:
www.yesinvest.in | Email: [email protected]

Registration Nos.: CIN: U74992MH2013PLC240971 | SEBI Registration No.: NSE, BSE, MCX & NCDEX : INZ000185632 |
Member Code: BSE – 6538, NSE – 14914, MCX – 56355 & NCDEX – 1289 | CDSL & NSDL: IN-DP-653-2021 | RESEARCH
ANALYST: INH000002376 | INVESTMENT ADVISER: INA000007331 | Sponsor and Investment Manager to YSL Alternates
Alpha Plus Fund (Cat III AIF) and YES Wealth Maximiser AIF (Cat III AIF) SEBI Registration No.: IN/AIF3/20- 21/0818 | AMFI
ARN Code – 94338

Details of Compliance Officer: Aditya Goenka | Email: [email protected] / Contact No.: 022-65078127 | Grievances
Redressal Cell: [email protected] / [email protected]

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 Somany Ceramics Ltd
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reports, respectively, apply to all research distributed by a FINRA member firm, including research prepared by a foreign
broker-dealer under Rule 15a-6.

• Research reports prepared by a foreign broker-dealer and distributed by a U.S. broker-dealer are deemed to be third party
research reports, as reports produced by a person other than a FINRA member.

• Prior to distributing any third party research, a U.S. broker-dealer must assure that such report contains the required
disclosures under FINRA Rule 2241(h) or 2242(g)(3), as applicable.

This report is intended for distribution by YES Securities (India) Limited only to "Major Institutional Investors" as defined by
Rule 15a-6(b)(4) of the U.S. Securities and Exchange Act, 1934 (the Exchange Act) and interpretations thereof by U.S.
Securities and Exchange Commission (SEC) in reliance on Rule 15a 6(a)(2). As per Rule 15a-6(b)(4) of the Exchange Act, 1934,
"Major U.S. institutional investor” means a U.S. institutional investor with assets, or assets under management, in excess of
US$100 million, or a registered investment adviser with assets under management in excess of US$100 million. If the
recipient of this report is not a Major Institutional Investor as specified above, then it should not act upon this report and
return the same to the sender. Further, this report may not be copied, duplicated and/or transmitted onward to any U.S.
person or entity. Transactions in securities discussed in this research report should be effected through Brasil Plural Securities
LLC (BPS) or another U.S. registered broker dealer/Entity as informed by YES Securities (India) Limited from time to time.

[1]
Rule 15a-6 under the Securities Exchange Act of 1934 provides conditional exemptions from broker-dealer registration
for foreign broker-dealers that engage in certain specified activities involving U.S. investors. These activities include:

(a) Effecting unsolicited securities transactions;

(b) Providing research reports to major U.S. institutional investors, and effecting transactions in the subject securities
with or for those investors;

(c) Soliciting and effecting transactions with or for U.S. institutional investors or major U.S. institutional investors
through a “chaperoning broker-dealer”; and

(d) Soliciting and effecting transactions with or for registered broker-dealers, banks3 acting in a broker or dealer
capacity, certain international organizations, foreign persons temporarily present in the U.S., U.S. citizens resident
abroad, and foreign branches and agencies of U.S. persons.

In adopting Rule 15a-6, the SEC sought "to facilitate access to foreign markets by U.S. institutional investors through
foreign broker-dealers and the research that they provide, consistent with maintaining the safeguards afforded by
broker-dealer registration." [Rule 15a-6 Adopting Release at 54 FR 30013; see also Registration Requirements for
Foreign Broker-Dealers, Exchange Act Release No. 25801 (June 14, 1988), 53 FR 23645 (June 23, 1988)].

For important information about YES Securities (India) Ltd. and other disclosures, refer to the end of this material. 9
 Somany Ceramics Ltd
DISCLOSURE OF INTEREST

Name of the Research Analyst : Udit Gajiwala, Shalin Damani

The analyst hereby certifies that opinion expressed in this research report accurately reflect his or her personal opinion about
the subject securities and no part of his or her compensation was, is or will be directly or indirectly related to the specific
recommendation and opinion expressed in this research report.

Sr.
Particulars Yes/No
No.

1 Research Analyst or his/her relative’s or YSIL’s financial interest in the subject company(ies) No

Research Analyst or his/her relative or YSIL’s actual/beneficial ownership of 1% or more securities

2 of the subject company(ies) at the end of the month immediately preceding the date of publication No
of the research report
Research Analyst or his/her relative or YSIL has any other material conflict of interest at the time of
3 No
publication of the research report

4 Research Analyst has served as an officer, director or employee of the subject company(ies) No

5 YSIL has received any compensation from the subject company in the past twelve months No

YSIL has received any compensation for investment banking or merchant banking or brokerage
6 No
services from the subject company in the past twelve months
YSIL has received any compensation for products or services other than investment banking or
7 No
merchant banking or brokerage services from the subject company in the past twelve months
YSIL has received any compensation or other benefits from the subject company or third party in
8 No
connection with the research report
YSIL has managed or co-managed public offering of securities for the subject company in the past
9 No
twelve months

10 Research Analyst or YSIL has been engaged in market making activity for the subject company(ies) No

Since YSIL and its associates are engaged in various businesses in the financial services industry, they may have financial
interest or may have received compensation for investment banking or merchant banking or brokerage services or for any
other product or services of whatsoever nature from the subject company(ies) in the past twelve months or associates of
YSIL may have managed or co-managed public offering of securities in the past twelve months of the subject company(ies)
whose securities are discussed herein.

Associates of YSIL may have actual/beneficial ownership of 1% or more and/or other material conflict of interest in the
securities discussed herein.

RECOMMENDATION PARAMETERS FOR FUNDAMENTAL REPORTS

Analysts assign ratings to the stocks according to the expected upside/downside relative to the current market price and the
estimated target price. Depending on the expected returns, the recommendations are categorized as mentioned below. The
performance horizon is 12 to 18 months unless specified and the target price is defined as the analysts’ valuation for a stock.
No benchmark is applicable to the ratings mentioned in this report.

BUY: Upside greater than 20% over 12 months

ADD: Upside between 10% to 20% over 12 months

NEUTRAL: Upside between 0% to 10% over 12 months

REDUCE: Downside between 0% to -10% over 12 months

SELL: Downside greater than -10% over 12 months

NOT RATED / UNDER REVIEW

Digitally signed by UDIT Digitally signed by SHALIN

UDIT BHAVESH BHAVESH GAJIWALA SHALIN PANKAJ PANKAJ DAMANI
Analyst signature Analyst signature
GAJIWALA Date: 2025.02.06 22:34:34
+05'30'
DAMANI Date: 2025.02.06 22:34:57
+05'30'

ABOUT YES SECURITIES (INDIA) LIMITED

YES Securities (India) Limited (‘YSIL’) is a subsidiary of YES Bank Limited (‘YBL’). YSIL is a Securities and Exchange Board of
India (SEBI) registered Stock broker holding membership of National Stock Exchange (NSE), Bombay Stock Exchange (BSE),
Multi Commodity Exchange (MCX) & National Commodity & Derivatives Exchange (NCDEX). YSIL is also a SEBI-registered
Investment Adviser and Research Analyst. YSIL is also a Sponsor and Investment Manager of Alternate Investment Fund -
Category III (YSL Alternates) and AMFI registered Mutual Fund Distributor. The Company is also a registered Depository
Participant with CDSL and NSDL.

For important information about YES Securities (India) Ltd. and other disclosures, refer to the end of this material. 10