CMP Target Price Stronger recovery; stepping up Rs 574 Rs

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Emkay

India Equity Research | Retail

October 29, 2021

Result Update

Westlife Development Refer to important disclosures at the end of this report

Stronger recovery; stepping up expansion pace

WLDL’s revenue recovery at 97% in Q2 was strong and ahead of our/street expectations

of 90%. EBITDA margins, however, came in lower at 12% vs. expectations of 13-14%, due

to higher other expenses, while gross margins were in line at 65%, despite RM inflation.

Sep’21 trends were even better at 103%. The recovery is strong, despite delayed opening

in Maharashtra, where WLDL has higher store salience of 40%+, led by continued traction

in the convenience channel (up ~7% QoQ) and 60-65% recovery in the dine-in channel.

WLDL presents strong medium-term growth prospects, driven by healthy traction for fried

chicken in southern markets (+10% contribution to store sales) and more aggression in

store openings. WLDL expects to double its network in the next 3-5 years.

Faster expansion, traction in fried chicken and margin gains improve our outlook slightly.

WLDL should also see more unlocking benefits with higher salience in the more-impacted

regions. Maintain Buy with a revised TP of Rs680 (34x Dec’23E EBITDA vs. 32x Sep’23E).

Relative price chart

Source: Bloomberg This report is solely produced by Emkay Global. The following person(s) are responsible for the production of the recommendation:

Ashit Desai

[email protected]

+91 22 6612 1340

Devanshu Bansal

[email protected]

+91 22 6612 1385

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Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 Oct-21

%Rs

Westlife Development (LHS) Rel to Nifty (RHS)

Strong recovery with Sep’21 sales surpassing pre-Covid level: WLDL reported a ~97%

recovery compared to pre-Covid levels, led by a ~95% recovery in per store revenues and

~2% growth in the store count. Growth recovery is strong, in our view, given delayed opening

in Maharashtra, where WLDL has a relatively higher store salience at 40%+. Post opening-

up, Sep’21 saw a healthy 103% recovery vs. Sep’19. Better recovery has been led by strong

70% growth in the convenience channel, while dine-in recovery was 60-65% (both compared

to Q2FY20 levels). WLDL highlighted its focus on menu-innovation, network expansion and

digital/omni channels to capitalize on the Covid-19-led accelerated shift toward organized

players. WLDL indicated that new innovations like fried chicken (currently rolled out in south

markets) are adding ~10% to store revenues (Rs5mn/store). It has raised its expansion

targets and now expects to double its store network in the next 3-5 years with a capital

investment of Rs8-10bn. Capex/store should remain at Rs30-35mn.

Margin miss in Q2 but Sep’21 trends encouraging: Despite an inflationary environment,

WLDL was able to maintain its gross margins at ~65% through changes in the product mix.

However, higher other expenses led to lower store EBITDA margins of 17.4% (vs. 20-21% in

H2FY21). Sep’21 margin trends were encouraging with store EBITDA margins at 22.4%.

WLDL maintained its guidance of low-to-mid teen Pre-IndAS EBITDA margin by FY23E.

Attractive valuations vs. peers; maintain Buy: We forecast healthy sales/EBITDA growth

of 10%/20% in FY20-24. The large penetration opportunity, increased pace of expansion and

margin gains keep us optimistic. Valuations at a discount to peers make it an attractive long-

term bet. Maintain Buy with a revised TP of Rs680 (vs. Rs630 earlier), based on rollover to

Dec’23E EBITDA and higher multiple of 34x Pre-IndAS EBITDA vs. 32x earlier, on improved

long-term EBIT growth outlook.

Please see our sector model portfolio (Emkay Alpha Portfolio): Consumer Goods & Retail (Page 8)

CMP Target Price

Rs 574 Rs 680 (▲) as of (October 28, 2021) 12 months

Rating Upside

BUY (■) 18.5 %

Change in Estimates

EPS Chg FY22E/FY23E (%) NA/

Target Price change (%) 7.9

Target Period (Months) 12

Previous Reco BUY

Emkay vs Consensus

EPS Estimates

FY22E FY23E

Emkay 0.1 4.4

Consensus (0.1) 5.3

Mean Consensus TP (12M) Rs 586

Stock Details

Bloomberg Code WLDL IN

Face Value (Rs) 2

Shares outstanding (mn) 156

52 Week H/L 684 / 361

M Cap (Rs bn/USD bn) 89 / 1.19

Daily Avg Volume (nos.) 1,82,498

Daily Avg Turnover (US$ mn) 1.4

Shareholding Pattern Sep '21

Promoters 57.1%

FIIs 11.0%

DIIs 22.0%

Public and Others 9.8%

Price Performance

(%) 1M 3M 6M 12M

Absolute 1 3 31 55

Rel. to Nifty 1 (9) 9 2

Financial Snapshot (Consolidated)

(Rs mn) FY20 FY21 FY22E FY23E FY24E

Revenue 15,473 9,856 14,040 18,978 22,370

EBITDA 2,194 615 2,086 3,483 4,246

EBITDA Margin (%) 14.2 6.2 14.9 18.4 19.0

APAT 94 (1,036) 23 688 1,020

EPS (Rs) 0.6 (6.6) 0.1 4.4 6.6

EPS (% chg) (36.4) (1,206.3) 0.0 2,864.0 48.4

ROE (%) 1.6 (19.6) 0.5 13.3 16.9

P/E (x) 954.9 (86.3) 3,850.1 129.9 87.5

EV/EBITDA (x) 44.4 157.9 46.8 27.8 22.6

P/BV (x) 15.5 18.6 18.5 16.2 13.6

Source: Company, Emkay Research

http://www.emkayglobal.com/

Westlife Development (WLDL IN) India Equity Research | Result Update


October 29, 2021 | 2

Story in Charts

Exhibit 1: Revenues saw ~97% recovery vs. ~53% last year, aided by strong growth in convenience sales and gradual dine-in recovery


Exhibit 2: 97% recovery was led by 95% recovery in average per-store sales and 2% store count growth, compared to Q2FY20


Exhibit 3: WLDL added 5 stores in Q2FY22 and indicated 25-30 additions in FY22E and higher 30-40 additions in FY23E


Exhibit 4: Convenience sales continued to see strong growth of ~70% compared to Q2FY20 and increased ~7% sequentially


Exhibit 5: Gross margins remained stable but higher other expenses led to lower EBITDA margins

Source: Emkay Research, Company, *Pre-IndAS116 margins

Exhibit 6: Head-office/employee costs remained stable but other expenses were higher in Q2FY22

Source: Emkay Research, Company

Exhibit 7: Traction in convenience channel continued in Q2FY22 with 70% growth over pre-Covid levels and despite better dine-in recovery


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Revenues (Rsbn), LHS YoY growth, % RHS

7.0 9.2 -6.9-54.0-40.0

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SSG, % Store Count growth, %

304 315 319 320 311 304 305 305 310

42 42 42 42 43 43 43 43 43

05101520253035404550

04080

120160200240280320360400

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Store Count (No.) City count (No.)- RHS

1.6

2.3

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MDS Drive-Thru Overall ConvenienceSales

Recovery Vs. Q2FY20 (x)

65.3 66.0 65.656.8

63.5 65.7 66.5 65.4 64.7

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Gross Margins- LHS EBITDA Margins RoM, RHS

34 34 37

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4235 35

4838

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Other Exp. (LHS) Employee (RHS) HO costs (RHS), % sales




October 29, 2021 | 3

Exhibit 8: Actual vs. Estimates (Q2FY22)

Rs mn Actual Estimates % variation Comment

Emkay Consensus Emkay Consensus

Revenues 3,854 3,561 3,636 8.2% 6.0% Revenue came in 6-8% higher than our/street estimates

EBITDA 457 455 496 0.6% -7.8% Higher other expenses led to lower margins

EBITDA Margin (%) 11.9% 12.8% 13.6% -91 -177

PAT -44 -26 57 70.5% -177.5% Revenue beat but lower margins led to lower PAT


Exhibit 9: Changes in estimates

Y/E, Mar (Rs mn) FY22E FY23E FY24E

Earlier Revised % Change Earlier Revised % Change Earlier Revised % Change

Revenues 14,040 14,040 0.0 18,978 18,978 0.0 22,208 22,370 0.7

EBITDA 2,142 2,086 -2.6 3,482 3,483 0.0 4,273 4,246 -0.6

EBITDA Margin (%) 15.3 14.9 -40 bps 18.3 18.4 0 bps 19.2 19.0 -30 bps

PAT 8 23 205.5 626 688 9.9 1,000 1,020 2.0

EPS (Rs) 0.0 0.1 205.5 4.0 4.4 9.9 6.4 6.6 2.0


Exhibit 10: Quarterly performance (consolidated)

Y/E, Mar (Rs mn) 2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 YoY (%) QoQ (%) FY21TD FY22TD YoY (%)

Revenue 2,095 3,251 3,576 2,592 3,854 84.0 48.7 3,034 6,446 112.5

Expenditure 2,053 2,750 3,077 2,541 3,397 65.5 33.7 3,414 5,938 73.9

Consumption of RM 764 1,115 1,198 896 1,360 77.9 51.7 1,170 2,256 92.8

as % of sales 36.5% 34.3% 33.5% 34.6% 35.3% 38.6% 35.0%

Employee Cost-Store 282 334 358 266 360 27.7 35.5 535 626 17.2

as % of sales 13.5% 10.3% 10.0% 10.3% 9.3% 17.6% 9.7%

Royalty 95 149 161 116 173 82.2 49.2 137 289 110.2

as % of sales 4.5% 4.6% 4.5% 4.5% 4.5% 4.5% 4.5%

Other expenditure 733 982 1,099 1,059 1,291 76.2 21.9 1,217 2,349 93.0

as % of sales 35.0% 30.2% 30.7% 40.8% 33.5% 40.1% 36.4%

HO Costs 179 170 261 204 214 19.1 4.7 355 418 17.5

as % of sales 23.4% 15.3% 21.8% 22.8% 15.7% 30.4% 18.5%

EBITDA 42 501 499 51 457 992.9 796.9 -380 508 -233.7

Depreciation 351 350 352 332 338 -3.8 1.8 704 670 -4.8

EBIT -310 151 147 -281 119 -138.5 -142.5 -1,084 -162 -85.1

Other Income 146 82 42 64 39 -73.1 -38.2 328 103 -68.6

Interest 217 210 204 203 204 -5.7 0.6 432 408 -5.7

PBT -380 23 -14 -420 -46 -88.0 -89.1 -1,188 -466 -60.8

Total Tax -109 0 19 -112 -15 -86.7 -87.1 -313 -127 -59.5

Adjusted PAT -271 22 -34 -308 -31 -88.5 -89.9 -876 -340 -61.2

Extra ordinary items 55 21 31 26 13 55 39

Reported PAT -325 1 -65 -334 -44 -86.4 -86.8 -931 -378 -59.4

Reported EPS (Rs) -2.1 0.0 -0.4 -2.1 -0.3 -86.4 -86.8 -6.0 -2.4 -59.4

Margins (%) (bps) (bps) (bps)

EBIDTA 2.0 15.4 14.0 2.0 11.9 990 990 -12.5 7.9 2,040

EBIT -14.8 4.6 4.1 -10.8 3.1 1,790 1,390 -35.7 -2.5 3,320

EBT -18.1 0.7 -0.4 -16.2 -1.2 1,700 1,500 -39.2 -7.2 3,190

PAT -15.8 0.0 -2.1 -13.1 -1.3 1,450 1,180 -27.3 -6.4 2,090

Effective Tax rate 28.8 1.8 -132.4 26.7 31.7 300 510 26.3 27.2 90





October 29, 2021 | 4

Exhibit 11: Peer comparison

Companies Price (Rs)

Mcap (Rs bn)

Reco Target

Price (Rs)

EPS (Rs) P/E (x) EV / EBITDA (x)

FY22E FY23E FY24E FY22E FY23E FY24E FY22E FY23E FY24E

ABFRL 256 216 Buy 250 -1.5 3.3 4.8 -175.1 76.8 53.2 22.4 13.0 10.8

Jubilant FoodWorks 3,725 499 Hold 3,900 38.3 54.0 66.8 97.3 68.9 55.7 42.3 33.0 27.4

Page Industries 37,520 420 Buy 37,500 432.5 618.4 730.0 86.8 60.7 51.4 58.4 42.0 35.6

Titan Company 2,375 2,184 Buy 2,770 26.3 36.2 44.8 90.2 65.7 53.0 59.6 44.0 35.6

Westlife Development 574 88 Buy 680 0.1 4.4 6.6 3850.1 129.9 87.5 46.0 27.3 22.2

TCNS Clothing 750 47 Buy 860 -4.3 17.0 26.1 -175.8 44.2 28.7 57.2 14.9 10.6


Exhibit 12: WLDL: Growth construct of the business from supply side

CAGR (%)

Particulars FY25E FY35E FY25-35E FY35E+

Mc-Donald's stores (#) 447 847 6.6 2.5

SSSG (%) 7.0 5.0

WLDL revenues (Rs bn) 26.4 98.3 14.1 7.6

EBITDA margin (%) 15.5 18.0 1.7 0.0

EBIT margin (%) 10.1 14.0 2.1 0.0

Total EBIT (Rs bn) 2.7 13.8 17.8 7.6


Exhibit 13: WLDL: Target EV/EBITDA multiple derived from a two-stage dividend growth model

Revenue CAGR [FY22E-25E] (%) 23

EBITDA CAGR [FY22E-25E] (%) 45

Net debt-to-EV (%) 0

Adj. beta vs Nifty (#) 0.76

Stage-1: FY25E-35E

EBITDA in Yr-0 [FY25E] (Rs) 4.1

EBITDA in Yr-1 (Rs bn) 4.8

EBITDA CAGR (%) 17.5

Years of growth [n] 10.0

Incremental RoIC (%) 30.0

WACC (%) 10.50

Tax rate (%) 25.2

Sustainable D&A-to-EBITDA (%) 25.0

Net debt to EV (%) 0

Implied FCFF ratio (%) 42

Revenues in FY35E (Rs bn) 132

Terminal stage: >FY35E

Terminal EBITDA growth (%) 7.5

Incremental RoIC (%) 30.0

Implied FCFF ratio (%) 75.0

Fair value EV/EBITDA in Mar'25E (x) 26.5

EV in Mar'25E (Rs bn) 127.8

Dec'22 NPV of FCFFs (Rs bn) 4.1

Dec'22E EV (Rs bn) 106.2

Adj. net debt (Rs bn) 0.3

Fair value of Equity in Dec'22E (x) 106

Dec'23E EBITDA (Rs bn) 3.1

Implied fair value EV/EBITDA in Dec'22E (x) 33.9

Target EV/EBITDA in Dec'22E (x) 33.9

Target market-cap in Dec'22E (Rs bn) 106

Target price in Dec'22E (Rs/share) 681

Source: Emkay Research




October 29, 2021 | 5

Key Financials (Consolidated)

Income Statement

Y/E Mar (Rs mn) FY20 FY21 FY22E FY23E FY24E

Revenue 15,473 9,856 14,040 18,978 22,370

Expenditure 13,279 9,241 11,954 15,495 18,124

EBITDA 2,194 615 2,086 3,483 4,246

Depreciation 1,442 1,546 1,476 1,788 2,014

EBIT 753 (931) 610 1,694 2,231

Other Income 135 447 150 150 173

Interest expenses 808 845 729 922 1,035

PBT 79 (1,329) 31 923 1,369

Tax (14) (293) 8 235 349

Extraordinary Items (166) 42 0 0 0

Minority Int./Income from Assoc. 0 0 0 0 0

Reported Net Income (73) (994) 23 688 1,020

Adjusted PAT 94 (1,036) 23 688 1,020

Balance Sheet


Equity share capital 311 312 311 311 311

Reserves & surplus 5,459 4,501 4,524 5,211 6,232

Net worth 5,770 4,812 4,835 5,523 6,543

Minority Interest 0 0 0 0 0

Loan Funds 9,659 9,680 9,738 9,909 10,310

Net deferred tax liability (214) (510) (510) (510) (510)

Total Liabilities 15,216 13,982 14,063 14,922 16,342

Net block 14,080 12,843 13,196 13,310 13,502

Investment 1,935 2,382 2,382 2,382 2,382

Current Assets 1,176 1,246 362 1,587 3,170

Cash & bank balance 30 110 (649) 339 1,717

Other Current Assets 223 114 131 150 173

Current liabilities & Provision 2,201 2,744 2,133 2,613 2,967

Net current assets (1,025) (1,498) (1,771) (1,026) 203

Misc. exp 0 0 0 0 0

Total Assets 15,216 13,982 14,063 14,922 16,342

Cash Flow


PBT (Ex-Other income) (NI+Dep) (222) (1,735) (119) 773 1,197

Other Non-Cash items 0 0 0 0 0

Chg in working cap 124 554 (486) 242 150

Operating Cashflow 2,015 1,206 1,592 3,490 4,047

Capital expenditure (1,285) (515) (1,130) (1,202) (1,506)

Free Cash Flow 730 691 462 2,288 2,540

Investments 469 (414) 0 0 0

Other Investing Cash Flow 0 0 0 0 0

Investing Cashflow (681) (482) (980) (1,052) (1,334)

Equity Capital Raised 0 0 0 0 0

Loans Taken / (Repaid) (502) 315 (500) (500) (300)

Dividend paid (incl tax) 0 0 0 0 0

Other Financing Cash Flow (746) (790) (740) (838) (954)

Financing Cashflow (1,396) (645) (1,371) (1,450) (1,334)

Net chg in cash (62) 80 (759) 988 1,379

Opening cash position 92 30 110 (649) 339

Closing cash position 30 110 (649) 339 1,717





October 29, 2021 | 6

Key Ratios

Profitability (%) FY20 FY21 FY22E FY23E FY24E

EBITDA Margin 14.2 6.2 14.9 18.4 19.0

EBIT Margin 4.9 (9.4) 4.3 8.9 10.0

Effective Tax Rate (18.0) 22.1 25.5 25.5 25.5

Net Margin 0.6 (10.5) 0.2 3.6 4.6

ROCE 7.6 (3.3) 5.4 12.7 15.4

ROE 1.6 (19.6) 0.5 13.3 16.9

RoIC 8.3 (7.7) 5.2 14.1 18.6

Per Share Data (Rs) FY20 FY21 FY22E FY23E FY24E

EPS 0.6 (6.6) 0.1 4.4 6.6

CEPS 9.9 3.3 9.6 15.9 19.5

BVPS 37.1 30.9 31.1 35.5 42.0

DPS 0.0 0.0 0.0 0.0 0.0

Valuations (x) FY20 FY21 FY22E FY23E FY24E

PER 954.9 (86.3) 3,850.1 129.9 87.5

P/CEPS 58.2 175.4 59.6 36.1 29.4

P/BV 15.5 18.6 18.5 16.2 13.6

EV / Sales 6.3 9.9 7.0 5.1 4.3

EV / EBITDA 44.4 157.9 46.8 27.8 22.6

Dividend Yield (%) 0.0 0.0 0.0 0.0 0.0

Gearing Ratio (x) FY20 FY21 FY22E FY23E FY24E

Net Debt/ Equity 1.4 1.6 1.7 1.4 1.0

Net Debt/EBIDTA 3.7 12.3 4.0 2.2 1.6

Working Cap Cycle (days) (24.9) (59.6) (29.2) (26.2) (24.7)

Growth (%) FY20 FY21 FY22E FY23E FY24E

Revenue 10.4 (36.3) 42.4 35.2 17.9

EBITDA 85.1 (72.0) 239.4 67.0 21.9

EBIT 133.4 (223.8) 0.0 177.9 31.7

PAT (149.5) 0.0 0.0 2,864.0 48.4

Quarterly (Rs mn) Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22

Revenue 2,095 3,251 3,576 2,592 3,854

EBITDA 42 501 499 51 457

EBITDA Margin (%) 2.0 15.4 14.0 2.0 11.9

PAT (325) 1 (65) (334) (44)

EPS (Rs) (2.1) - (0.4) (2.1) (0.3)


Shareholding Pattern (%) Sep-20 Dec-20 Mar-21 Jun-21 Sep-21

Promoters 59.1 59.1 58.0 56.4 57.1

FIIs 10.0 9.6 10.8 11.6 11.0

DIIs 19.4 20.5 20.8 20.9 22.0

Public and Others 11.5 10.9 10.4 11.2 9.8

Source: Capitaline




October 29, 2021 | 7

RECOMMENDATION HISTORY TABLE

Date Closing

Price TP

Period (months)

Rating Analyst

15-Aug-21 512 630 12m Buy Ashit Desai

28-Jun-21 489 630 12m Buy Ashit Desai

14-May-21 428 600 12m Buy Ashit Desai

17-Mar-21 508 600 12m Buy Ashit Desai


RECOMMENDATION HISTORY CHART

Source: Bloomberg, Company, Emkay Research

260

338

416

494

572

650

30

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18

30

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19

29

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28

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20

27

-Oct-

20

27

-Apr-

21

26

-Oct-

21

BUY Hold Sell Accumulate

Reduce Price Target Price




October 29, 2021 | 8

Emkay Alpha Portfolio – Consumer Goods & Retail

EAP sector portfolio

Company Name BSE200 Weight

EAP Weight

OW/UW (%)

OW/UW (bps)

EAP Weight (Normalised)

Consumer Goods & Retail 9.96 9.96 0% 0 100.00

Asian Paints 1.33 0.46 -66% -87 4.60

Berger Paints 0.17 0.00 -100% -17 0.00

Britannia Industries 0.42 0.50 19% 8 4.97

Colgate-Palmolive 0.19 0.21 6% 1 2.08

Dabur India 0.33 0.35 5% 2 3.48

Emami 0.10 0.10 -1% 0 1.03

Godrej Consumer Products 0.36 0.35 -4% -2 3.49

Hindustan Unilever 2.04 1.51 -26% -53 15.16

ITC 1.99 2.00 1% 1 20.08

Marico 0.28 0.31 10% 3 3.13

Nestle India 0.65 0.39 -40% -26 3.88

Pidilite Industries 0.34 0.00 -100% -34 0.00

Radico Khaitan 0.00 0.37 NA 37 3.76

United Breweries 0.11 0.52 372% 41 5.24

United Spirits 0.00 0.30 NA 30 3.05

Varun Beverages 0.11 0.18 55% 6 1.78

ABFRL 0.07 0.10 42% 3 1.03

Jubilant FoodWorks 0.28 0.25 -9% -3 2.51

Page Industries 0.20 0.45 121% 25 4.53

Titan Company 0.98 1.13 16% 15 11.38

TCNS Clothing 0.00 0.23 NA 23 2.35

Westlife Development 0.00 0.25 NA 25 2.47

Cash 0.00 0.00 NA 0 0.00


* Not under coverage: Equal Weight

High Conviction/Strong Over Weight High Conviction/Strong Under Weight

Sector portfolio NAV

Base Latest

1-Apr-19 28-Oct-20 28-Apr-21 28-Jul-21 27-Sep-21 27-Oct-21

EAP - Consumer Goods & Retail 100.0 103.8 120.6 132.7 148.8 149.0

BSE200 Neutral Weighted Portfolio (ETF) 100.0 100.5 116.0 125.9 141.0 135.6

*Performance measurement base date 1st April 2019


Price Performance (%)

1m 3m 6m 12m

EAP - Consumer Goods & Retail 0.2% 12.3% 23.6% 43.5%

BSE200 Neutral Weighted Portfolio (ETF) -3.8% 7.7% 16.9% 34.9%


NAV chart


Please see our model portfolio (Emkay Alpha Portfolio): Nifty

Please see our model portfolio (Emkay Alpha Portfolio): SMID

“Emkay Alpha Portfolio – SMID and Nifty are a supporting document to the Emkay Alpha

Portfolios Report and is updated on regular intervals”

75

92

109

126

143

160

Apr-19 Jul-19 Nov-19 Mar-20 Jul-20 Nov-20 Mar-21 Jun-21 Oct-21

NAV

EAP - Consumer Goods & Retail BSE200 Neutral Weighted Portfolio (ETF)

Analyst: Ashit Desai

Contact Details

[email protected]

+91 22 6612 1340

Sector

Consumer Goods & Retail

Analyst bio

Ashit Desai holds a PGDM and FRM (US

GARP) with 13 years of research

experience on the sell side. His team

currently covers 24 stocks in the Indian

Consumer and Retail space.


https://web3.emkayglobal.com/ResearchAccess/Upload/Nifty_Oct21.pdf

https://web3.emkayglobal.com/ResearchAccess/Upload/SMID_Oct21.pdf

https://web3.emkayglobal.com/ResearchAccess/Upload/SMID_Oct21.pdf

mailto:[email protected]



October 29, 2021 | 9

Emkay Rating Distribution

Ratings Expected Return within the next 12-18 months.

BUY Over 15%

HOLD Between -5% to 15%

SELL Below -5%

Completed Date: 29 Oct 2021 02:56:57 (SGT) Dissemination Date: 29 Oct 2021 02:57:57 (SGT)

Sources for all charts and tables are Emkay Research unless otherwise specified.

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October 29, 2021| 10

ANALYST CERTIFICATION BY EMKAY GLOBAL FINANCIAL SERVICES LIMITED (EGFSL) The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her compensation was, is, or will be, directly or indirectly, related to specific recommendations or views expressed in the report. The research analyst (s) primarily responsible of the content of this research report, in part or in whole, certifies that he or his associate1 does not serve as an officer, director or employee of the issuer or the new listing applicant (which includes in the case of a real estate investment trust, an officer of the management company of the real estate investment trust; and in the case of any other entity, an officer or its equivalent counterparty of the entity who is responsible for the management of the issuer or the new listing applicant). The research analyst(s) primarily responsible for the content of this research report or his associate does not have financial interests2 in relation to an issuer or a new listing applicant that the analyst reviews. EGFSL has procedures in place to eliminate, avoid and manage any potential conflicts of interests that may arise in connection with the production of research reports. The research analyst(s) responsible for this report operates as part of a separate and independent team to the investment banking function of the EGFSL and procedures are in place to ensure that confidential information held by either the research or investment banking function is handled appropriately. There is no direct link of EGFSL compensation to any specific investment banking function of the EGFSL. 1 An associate is defined as (i) the spouse, or any minor child (natural or adopted) or minor step-child, of the analyst; (ii) the trustee of a trust of which the analyst, his spouse, minor child (natural or adopted) or minor step-child, is a beneficiary or discretionary object; or (iii) another person accustomed or obliged to act in accordance with the directions or instructions of the analyst. 2 Financial interest is defined as interest that are commonly known financial interest, such as investment in the securities in respect of an issuer or a new listing applicant, or financial accommodation arrangement between the issuer or the new listing applicant and the firm or analysis. This term does not include commercial lending conducted at the arm’s length, or investments in any collective investment scheme other than an issuer or new listing applicant notwithstanding the fact that the scheme has investments in securities in respect of an issuer or a new listing applicant.

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Disclosures by Emkay Global Financial Services Limited (Research Entity) and its Research Analyst under SEBI (Research Analyst) Regulations, 2014 with reference to the subject company(s) covered in this report-: 1. EGFSL, its subsidiaries and/or other affiliates do not have a proprietary position in the securities recommended in this report as of October 29,

2021 2. EGFSL, and/or Research Analyst does not market make in equity securities of the issuer(s) or company(ies) mentioned in this Research Report Disclosure of previous investment recommendation produced: 3. EGFSL may have published other investment recommendations in respect of the same securities / instruments recommended in this research

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October 29, 2021| 11

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