Indo Count Industries
BSE SENSEX
34,951
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
S&P CNX
10,524
ICNT IN
Robust volumes without earnings vigor as currency/mix/RM cost haunt
197
Expect continued margin pressure
12.6 / 0.2
139 / 53
Operating performance disappointing:
ICNT’s revenue declined 1.4% YoY to
4/-24/-47
INR4,860m (our estimate: INR5,273m) in 2QFY19. EBITDA fell 30% YoY to
108
INR498m (our estimate: INR770m), with the margin contracting 420bp YoY
41.1
5 November 2018
2QFY19 Results Update | Sector: Textiles
CMP: INR64
TP: INR72(+13%)
Neutral
Financials & Valuations (INR b)
2018 2019E
Y/E Mar
Net Sales
19.6
20.5
EBITDA
2.6
2.5
PAT
1.3
1.1
EPS (INR)
6.4
5.8
Gr. (%)
-45.7
-9.5
BV/Sh (INR)
48.4
53.0
RoE (%)
14.0
11.4
RoCE (%)
11.9
10.3
P/E (x)
10.0
11.1
P/BV (x)
1.3
1.2
2020E
21.7
2.7
1.3
6.6
13.6
58.4
11.8
10.8
9.7
1.1
Estimate change
TP change
Rating change
to 10.2% (our estimate: 14.6%). Adj. PAT declined 39.4% YoY to INR218m
(our estimate: INR395m) in the quarter.
1HFY19 performance:
Revenue grew by 2% YoY to INR9,429m. EBITDA
declined 17% YoY to INR1,139m, with the margin contracting 270bp YoY to
12.1%. Adj. PAT declined 25% YoY to INR506m. In 2HFY19, we expect
revenue growth of 11% YoY, with margin contraction of 100bp.
Steady volume growth, but expect pressure on profitability:
ICNT delivered
volume growth of 9% YoY in 2QFY19 and 15% YoY in 1HFY19. The company
is well on track to meet its volumes guidance of 58-60m mtrs in FY19, with
30.2m mtrs already achieved in 1HFY19. However, revenue growth and
profitability were impacted in 1HFY19 on account of currency volatility
(hedged at exchange rate lower than realized translation), product mix
changes and raw material (RM) cost pressure. Going forward too, RM cost
pressure (cotton prices at INR46k/candy v/s expectation of MSP level prices
of 43-44k/candy) and currency volatility are likely to persist.
Valuation and view:
Due to the strong miss on earnings (45%) in 2QFY19
and the likely gross margins pressure in 2HFY19, we cut our
revenue/earnings estimates by 3%/24% for FY19 and by 5%/24% for FY20.
We also note that strong volumes have not translated into robust revenue
growth and operating performance. We value the stock at 11x FY20E EPS
(~10% discount to its five-year average P/E) on account of the continued
muted performance and likely pressure on margins. Our target price of
INR72 implies a 13% upside. Maintain
Neutral.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Sumant Kumar – Research Analyst
(Sumant.Kumar@motilaloswal.com); +91 22 3078 4702
Aksh Vashishth – Research Analyst
(Aksh.Vashishth@motilaloswal.com); +91 22 6129 1553
 Motilal Oswal Financial Services
Indo Count Industries
Results below estimates
ICNT’s revenue declined 1.4% YoY to INR4,860m (est. of INR5,273m) in 2QFY19.
EBITDA margin shrank 420bp YoY to 10.2% (est. of 14.6%), as other expenses
increased 400bp YoY to 24.1% of net sales, power and fuel cost increased 90bp
to 4.7% and employee cost increased 90bp to 6.5%. Gross margin improved
150bp to 45.4%.
EBITDA stood at INR498m (est. of INR770m), declining by 30% YoY.
Adj. PAT declined 39.4% YoY to INR218m (est. of INR395m) in 2QFY19.
Exhibit 1: Revenue trend
8%
0%
0%
Revenues (INR m)
0%
-12%
-15%
Growth (%)
-9%
-17%
6%
-1%
4,926
5,763
5,029
5,129
4,318
4,928
4,600
4,237
4,569
4,860
Source: MOSL, Company
Exhibit 2: EBITDA trend
EBITDA (INR m)
Margins (%)
Exhibit 3: PAT trend
PAT (INR m)
Growth (%)
1,103 1,164 1,020 901
653
711
693
596
641
498
603
627
562
488
320
359
364
268
288
218
Source: MOSL, Company
Source: MOSL, Company
Conference call take-away
Major markets of US and EU are showing signs of improvement, as evident by
the strong volume performance by the company (9% volume growth in 2QFY19
and 15% growth in 1HFY19).
The revenue was impacted on account of:
Lower government incentives
Lower forex realization – most of the hedging was undertaken at the
beginning of the financial year at the INR-USD exchange rate of 64
compared to the previous year when the exchange rate was higher. This had
an impact on topline in 1HFY19 to the tune of 2.4%.
Product mix change.
The hedging rate for 2HFY19 has been fixed at INR68/USD. In the coming year,
this rate is expected to improve by 5-7%.
5 November 2018
2
 Motilal Oswal Financial Services
Indo Count Industries
Gross debt stood at INR3,500m as on Sept’18 v/s INR3,710m as on Mar’18. Net
debt to equity stood at 0.37.
The company has spent INR300m so far in 1HFY19 as capex; it plans to spend
another INR350-400m in 2HFY19.
Cotton prices hover at INR46k/candy against the expectation of MSP level prices
of INR43-44k/candy. This is expected to result in gross margin pressure going
forward.
The share of fashion, utility and institution bedding has marginally improved to
14%.
Valuation and view
Due to the strong miss on earnings (45%) in 2QFY19 and the likely gross margins
pressure in 2HFY19, we cut our revenue/earnings estimates by 3%/24% for FY19 and
by 5%/24% for FY20. We also note that strong volumes have not translated into
robust revenue growth and operating performance. We value the stock at 11x FY20E
EPS (~10% discount to its five-year average P/E) on account of the continued muted
performance and likely pressure on margins. Our target price of INR72 implies a 13%
upside. Maintain
Neutral..
Exhibit 4: Price to earnings (one year forward)
P/E (x)
Avg (x)
Max (x)
Min (x)
+1SD
-1SD
35
31.6
28
21
14
7
0
0.3
0.3
16.2
8.3
Exhibit 5: Price to book (one year forward)
P/B (x)
Avg (x)
Min (x)
+1SD
6
4
2
3.2
1.6
-0.1
0.1
Max (x)
-1SD
5.5
8.4
0
-2
1.1
Source: MOSL, Company
Source: MOSL, Company
5 November 2018
3
 Motilal Oswal Financial Services
Indo Count Industries
Story in charts
Exhibit 6: Expect revenue CAGR of 5% over FY18-20
50.8
Revenue (INRm)
17,818 21,106
19.0
18.5
7.0
(13.3)
1,200
FY13
FY14
FY15
FY16
FY17
FY18
FY19E FY20E
FY13
1,892
FY14
3,136
FY15
4,645
FY16
4,285
FY17
2,622
FY18
2,467
2,681
FY19E FY20E
22,578
Growth (%)
21,660
12.6
5.4
9.9
Exhibit 7: Margins to contract 100bp over FY18-20
EBITDA (INRm)
22.0
17.6
19.0
13.4
12.0
12.4
Margin (%)
23.1
12,171 14,979
19,582 20,547
4.9
Source: MOSL, Company
Source: MOSL, Company
Exhibit 8: RoE to hover around 11.8%
RoCE (%)
31.4
45.1
27.3
45.8
47.7
31.5
14.6
14.0
FY13
FY14
FY15
FY16
FY17
FY18
11.4
11.8
11.9
10.3
10.8
23.9
RoE (%)
Exhibit 9: Free cash flow generation to pick up
Free Cash Flow (INRm)
1,510
1,351
791
22.5
23.5
853
354
448
-124
FY14
FY15
FY16
FY17
187
FY19E FY20E
FY13
FY18 FY19E FY20E
Source: MOSL, Company
Source: MOSL, Company
Exhibit 10: Share from bed linen on an uptrend
12%
22%
Bed Linen
3%
9%
18%
22%
Yarn
Consumer Goods
0%
0%
0%
0%
8%
10%
10%
8%
0%
8%
Exhibit 11: Surging towards becoming net debt free
Net Debt to Equity (x)
2.1
1.4
0.8
0.6
66%
69%
79%
92%
90%
90%
92%
92%
0.3
FY17
0.4
0.3
0.2
FY13
FY14
FY15
FY16
FY17
FY18
FY19E FY20E
FY13
FY14
FY15
FY16
FY18 FY19E FY20E
Source: MOSL, Company
Source: MOSL, Company
5 November 2018
4
 Motilal Oswal Financial Services
Indo Count Industries
Financials and Valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Current Tax
Deferred Tax
Tax Rate (%)
Less: Mionrity Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Deferred Liabilities
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Appl. of Funds
FY13
12,171
50.8
1,200
9.9
185
1,015
498
0
517
-157
361
14
52
18.2
2
293
421
502.5
3.5
FY14
14,979
23.1
1,892
12.6
196
1,696
499
0
1,197
0
1,197
12
81
7.8
4
1,100
1,100
161.0
7.3
FY15
17,818
19.0
3,136
17.6
160
2,977
650
0
2,326
-257
2,069
506
104
29.5
2
1,456
1,638
49.0
9.2
FY16
21,106
18.5
4,645
22.0
301
4,344
551
0
3,793
0
3,793
1,210
70
33.7
0
2,513
2,513
53.4
11.9
FY17
22,578
7.0
4,285
19.0
331
3,953
421
0
3,532
0
3,532
898
314
34.3
-1.9
2,322
2,322
-7.6
10.3
FY18
19,582
-13.3
2,622
13.4
331
2,291
347
0
1,944
0
1,944
668
22
35.5
-7.6
1,260
1,260
-45.7
6.4
FY19E
20,547
4.9
2,467
12.0
352
2,115
345
0
1,770
0
1,770
609
20
35.5
0
1,141
1,141
-9.5
5.6
FY20E
21,660
5.4
2,681
12.4
374
2,308
296
0
2,012
0
2,012
692
23
35.5
0
1,297
1,297
13.6
6.0
FY13
355
1,576
1,956
13
368
4,110
6,447
6,301
2,706
3,596
18
0
4,567
2,458
879
86
1,144
2,314
2,257
57
2,253
6,447
FY14
355
2,537
2,917
55
368
4,341
7,680
6,422
2,958
3,464
3
0
6,511
3,457
1,087
313
1,654
2,797
2,514
283
3,714
7,680
FY15
395
3,819
4,239
57
432
3,859
8,587
7,065
3,181
3,884
146
0
8,389
3,830
1,270
508
2,781
3,894
3,163
731
4,495
8,587
FY16
395
5,909
6,304
83
868
3,914
11,169
8,318
3,483
4,836
107
0
8,976
4,564
2,431
294
1,687
2,748
2,734
15
6,227
11,169
FY17
395
8,067
8,462
82
1,176
3,035
12,754
9,142
3,814
5,328
122
0
9,789
4,719
3,112
186
1,772
2,485
1,343
40
7,304
12,754
FY18
395
9,169
9,564
74
1,200
3,711
14,549
9,579
4,145
5,434
237
1
11,320
5,905
2,872
255
2,287
2,443
1,916
39
8,876
14,549
FY19E
395
10,072
10,467
74
1,200
2,854
14,595
10,329
4,496
5,832
187
1
11,296
5,460
3,265
167
2,404
2,722
2,167
41
8,574
14,595
FY20E
395
11,140
11,535
74
1,200
2,779
15,588
11,039
4,870
6,168
177
1
12,091
5,756
3,442
358
2,534
2,850
2,265
43
9,241
15,588
5 November 2018
5
 Motilal Oswal Financial Services
Indo Count Industries
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Debt/Equity
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(inc)/dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
(Inc)/Dec in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY13
2.4
3.4
11.0
0.0
0.0
FY14
6.2
7.3
16.4
0.0
0.0
10.3
8.8
3.9
1.1
8.8
0.0
22.5
14.6
13.9
1.9
74
26
112
2.1
FY13
338
185
497
0
-772
247
-60
187
0
187
1
-152
-151
0
476
-498
-1
2
-22
15
71
86
45.1
23.5
22.8
2.0
84
26
103
1.5
FY14
1,174
196
498
-231
-1,096
540
-198
342
13
354
-22
27
18
0
314
-499
-1
54
-133
227
86
313
FY15
8.3
9.1
21.5
0.0
0.0
7.7
7.0
3.0
0.9
5.1
0.0
45.8
27.3
27.4
2.1
78
26
122
0.9
FY15
2,025
160
649
-487
-158
2,188
174
2,362
-853
1,510
0
-175
-1,028
40
-528
-650
-1
-1
-1,139
195
313
508
FY16
12.7
14.3
31.9
0.0
0.0
5.0
4.5
2.0
0.8
3.5
0.0
47.7
31.4
30.8
1.9
79
42
95
0.6
FY16
3,889
188
546
-838
-2,116
1,669
-2
1,668
-1,220
448
0
17
-1,203
0
-9
-549
-96
-25
-679
-214
508
294
FY17
11.8
13.4
42.9
0.4
4.1
5.4
4.8
1.5
0.7
3.6
0.6
31.5
23.9
22.4
1.8
76
50
42
0.4
FY17
3,532
331
421
-898
-1,185
2,201
-509
1,692
-839
853
0
-2
-841
0
-879
-421
95
246
-959
-108
294
186
FY18
6.4
8.1
48.4
0.8
15.1
10.0
7.9
1.3
0.8
6.1
1.3
14.0
11.9
11.1
1.3
110
54
67
0.4
FY18
1,944
331
347
-691
-1,503
428
0
428
-552
-124
-1
49
-505
0
676
-347
-190
8
146
69
186
255
FY19E
5.8
7.6
53.0
1.0
20.8
11.1
8.5
1.2
0.7
6.2
1.6
11.4
10.3
9.6
1.4
97
58
70
0.3
FY19E
1,770
352
345
-629
214
2,051
0
2,051
-700
1,351
0
0
-700
0
-857
-345
-238
0
-1,439
-88
255
167
FY20E
6.6
8.5
58.4
1.0
17.7
9.7
7.6
1.1
0.7
5.6
1.6
11.8
10.8
10.2
1.4
97.0
58
70
0.2
FY20E
2,012
374
296
-715
-475
1,491
0
1,491
-700
791
0
0
-700
0
-75
-296
-229
0
-599
192
167
358
5 November 2018
6
 Motilal Oswal Financial Services
Indo Count Industries
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst becomes inconsistent with the investment rating legend, the Research Analyst shall within 28 days of the
inconsistency, take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Securities Ltd. (MOSL)* is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
products. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com.
MOSL is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of India Ltd.
(NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India (MCX) & National Commodity & Derivatives Exchange Ltd. (NCDEX) for its stock broking
activities & is Depository participant with Central Depository Services Limited (CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual
Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (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.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should
be aware that MOSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant
banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Securities Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from
MOSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Securities Limited (MOSL) is 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 MOSL 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 applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment
services provided by MOSL , including the products and services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to
"Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This
document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only
available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the
U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct
business with Institutional Investors based in the U.S., MOSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International
Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOSL has not received any compensation or other benefits from third party in connection with the research report
10 MOSL has not engaged in market making activity for the subject company
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 Motilal Oswal Financial Services
Indo Count Industries
The associates of MOSL may have:
-
financial interest in the subject company
-
actual/beneficial ownership of 1% or more securities in the subject company
-
received compensation/other benefits from the subject company in the past 12 months
-
other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever
on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of
MOSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
-
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
-
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)
-
received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
of MOSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature.
The information is obtained from publicly available media or other 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. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing
in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. 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), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report 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 MOSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all
jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither
the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue
or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOSL or any of its affiliates
or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or employees responsible for any such misuse
and further agrees to hold MOSL or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing
this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980
4263; www.motilaloswal.com. Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080
1000. Compliance Officer: Neeraj Agarwal, Email Id:
na@motilaloswal.com,
Contact No.:022-38281085.
Registration details: MOSL: SEBI Registration: INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412.
AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual
Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth management solutions. *Motilal Oswal Securities Ltd.
is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. *Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate
products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench. The existing registration no(s) of MOSL would be used until receipt of new MOFSL registration numbers.
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