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Q2 Results Overview: A Cautious Economic Landscape
The second quarter (Q2) results have painted a picture of a cautious economic landscape. Several key observations have emerged from the analysis:
1. *Economic Froth Reduction*:
As the markets settle, we are witnessing the removal of some froth, leading to a more grounded economic outlook.
2. *FMCG Sector Slowdown*:
There is a noticeable slowdown in urban demand within the Fast-Moving Consumer Goods (FMCG) sector, highlighting the cautious spending behavior of consumers.
3. *Financial Concerns*:
Financial uncertainties remain a concern, impacting overall market sentiment and investor confidence.
4. *OEM Demand Pressure*:
Original Equipment Manufacturers (OEMs) are experiencing pressure from the demand side, reflecting the challenges in the supply chain and consumer demand.
5. *Chemical Sector Sluggishness*:
The chemical sector is facing sluggishness, with inventory piling up and slower movement of goods.
6. *Revenue Growth*:
Despite these challenges, revenue growth remains a visible common factor across various sectors, indicating resilience in some areas.
7. *Analyst and Investment Banker Sentiment*:
There have been more downgrades than upgrades by analysts and investment bankers, reflecting a cautious approach to market projections.
8. *Government Spending Slowdown*:
Some slowdown in government spending has been witnessed, which could have implications for economic growth and development projects.
9. *Primary Market Activity*:
The primary market supply has almost surpassed the Fiscal Year 2023 (FY23) levels, making India the second-largest primary market globally.
10. *Thematic Fund Investments*:
Investments in small, mid, and micro-sector thematic funds have seen a significant increase, indicating a shift in investor focus.
11. *Earnings vs. Benchmark Index*:
Earnings in these segments compared to benchmark indices have stretched significantly, suggesting potential overvaluation.
12. *High P/E Ratios*:
The percentage of stocks trading above 50/60 P/E ratios across the board has increased significantly compared to the last bull market.
13. *Investor Experience*:
A notable observation is that 3 out of 4 investors in this rally have not experienced a bear market or significant correction, raising concerns about profit booking and market awareness.
### Supporting the Cautious Tone
The market appears to be playing according to the expected script, where liquidity concerns have taken a backseat, and valuation worries have come to the forefront. This shift in focus underscores the need for cautious optimism as we navigate the current economic landscape.
1. *Valuation Over Liquidity*:
The concern has never been about the availability of liquidity; rather, it has been about the valuation of assets. Elevated P/E ratios and stretched earnings compared to benchmark indices indicate potential overvaluation, warranting a cautious approach.
2. *Market Dynamics*:
The market dynamics reflect a cautious sentiment, where more downgrades than upgrades by analysts and investment bankers signal a conservative outlook on growth and profitability.
3. *Primary Market Strength*:
The robust activity in the primary market, surpassing FY23 levels, suggests strong investor interest. However, this also highlights the need for careful consideration of valuations in the face of increasing supply.
4. *Investment Shifts*:
The significant increase in investments in small, mid, and micro-sector thematic funds reflects a strategic shift by investors seeking growth opportunities. This move underscores the importance of assessing valuations and potential returns in these sectors.
5. *Investor Awareness*:
With a large proportion of investors not having experienced a bear market, there is a heightened risk of over-enthusiasm and insufficient caution. This underscores the need for prudent investment strategies and awareness of market cycles.
6. *Economic Outlook*:
The cautious economic landscape, characterized by financial concerns, demand pressures, and sluggishness in certain sectors, calls for a balanced approach to investment and market participation.
*Personal Investment Strategy*:
While views may differ, I personally, as an investor, plan to focus on micro and small-cap investments. I believe in the potential of these sectors and will continue to buy with both hands over the next couple of months.
It’s Time to watch Q3 and act
Parag Gowaikar
In the fast-evolving world of financial services, banks are moving beyond traditional walls to create more open, flexible ecosystems. The concept of Composable Banking is at the heart of this transformation, allowing banks to break free from monolithic systems and embrace modular, flexible solutions that can adapt and scale quickly.
From Traditional Models to Open Banking
At the core of this shift is the move away from the Traditional Banking Model—where banks rely solely on their own products and channels—to a broader ecosystem that includes Marketplace and Platform Banking, Open Banking, and Embedded Finance. This means banks are no longer confined to offering only their products. Instead, they integrate third-party products and services, such as insurance, investment, and even non-financial services like travel and lifestyle options.
Composable Banking IT Stack
For banks to fully support these ecosystems, they need a flexible and scalable IT infrastructure. Enter the Composable IT Stack, which allows banks to manage different functional services, such as customer engagement, lending, payments, and more. This stack is modular and cloud-native, meaning that each service is independent and can be customized or updated without disrupting the entire system.
The stack also emphasizes core characteristics like:
Cloud-Native: Leveraging the capabilities of the cloud for scalability and flexibility.
Microservices-Based: Composed of self-contained services that work independently but communicate seamlessly.
Real-Time: Providing real-time access to data, ensuring instant responsiveness.
Extensible: Designed for growth, allowing new features and services to be added via APIs as needed.
The Benefits of Composability
With this approach, banks can innovate faster, integrating third-party solutions easily while maintaining control over their core banking data and technology. The use of APIs and modular components means that banks can offer highly personalized services, meet regulatory demands more efficiently, and respond quickly to changing market conditions.
In essence, the Composable Banking Stack is about delivering seamless experiences and bringing together the best of traditional banking and modern financial ecosystems. This allows financial institutions to not just survive, but thrive in the rapidly changing digital landscape.
Overview - Obesity is indeed a significant global health issue. The statistics highlights the alarming rise in obesity rates among both children and adults over the past few decades.
Addressing obesity requires a multifaceted approach, including promoting healthy eating habits, encouraging regular physical activity, and implementing policies that support healthier environments. It's also important to raise awareness about the risks associated with obesity and provide support for individuals trying to achieve and maintain a healthy weight.
Obesity Market Position of India-
Market Growth: The market for anti-obesity drugs in India is expected to grow significantly, with a projected market size of Rs 2,762.7 crore by 2028, and a compound annual growth rate (CAGR) of 10.6% from 2023 to 2028.
Health Implications: Obesity is a growing concern in India, with around 22% of the main population, 23% of the female population, and 11% of children being overweight. This indicates a larger population exposed to weight-related complications in the future.
Product Development: Several Indian pharmaceutical companies are actively involved in
developing anti-obesity drugs. These companies are focusing on research and development, strategic partnerships, and regulatory approvals to introduce innovative therapies targeting obesity.
Demand and Supply: Despite the official unavailability of some expensive weight-loss drugs like Ozempic, Mounjaro, and Wegovy in India, there is a high demand among affluent individuals. Celebrities and wealthy individuals are procuring these medications from other countries.
Market Trends: The anti-obesity drug market in India has seen a significant spurt after the launch of Novo Nordisk's semaglutide (anti-obesity drug) in 2022. The market has tripled in two years, growing at a 32% CAGR to reach Rs 474 crore in January 2024.
Regulatory Considerations: Anti-obesity drugs require a doctor's prescription and are not to be taken without medical supervision. These drugs are beneficial for weight reduction and can also help with heart, kidney, and liver issues.
Effectiveness of Obesity Medications-
The global market for obesity medications is projected to grow over 15 times by 2030. as their application extends beyond weight loss to the treatment of various diseases
The potential of these drugs to enhance longevity could revolutionize healthcare, presenting lucrative investment opportunities in medical technology. By 2035, with up to 7-9% of the population (US and ROW) using these medications, food and beverage brands will need to adapt by offering healthier options and reducing package sizes.
The Beginning & The Effect-
Healthcare Spending: Obese individuals spend more on healthcare annually, but lower obesity rates might not reduce overall healthcare costs due to increased life expectancy
Investment Opportunities: The medical technology sector, particularly cardiovascular devices, may benefit from increased longevity. The outlook for kidney dialysis and orthopedic devices is mixed.
Impact of Obesity Drugs: These drugs could significantly affect healthcare by preventing diseases linked to obesity and reducing the risk of diabetes, heart attacks, strokes, and cardiovascular deaths.
Clinical Trials and Costs: Expanding the use of obesity drugs will require more clinical trials and insurance reimbursement.
Disruption Potential: Obesity drugs have the potential to disrupt healthcare significantly if they impact longevity.
Food Habit Shift & Impact-
Fast food and pizza chains could face long-term challenges as consumers cut back on visits, with limited flexibility for those focusing on pizza or fried chicken. Analysts expect these chains to adapt over time.
Consumption of soft drinks, alcohol, and salty snacks is projected to decline by up to 4% by 2035. However, this may be balanced by the rise of low-sugar or alcohol-free options, smaller packaging, and slower obesity drug adoption especially in emerging markets like India.
Opportunity - As an investor, it's important to consider the future growth rate of obesity, the collective measures for managing it, and the increasing adoption of weight-loss drugs.
Drugs and Balances -
Wight loss Medicines - Oral/Injectable-eg. Semaglutide, Tirzepatide
Protein Balance - Whey Protein, Plant Based Protein powder
Vitamin Balance - Vitamin D3, B12, A, E, Omega 3
Focus on Fitness The fitness industry presents lucrative opportunities as it accelerates in response to these trends
Monitoring - Monitoring health at home using various kits can help you keep track of important health parameters like blood pressure and glucose levels
Food for Thought: Investors should aim to trim the excess from their portfolios and focus on building a healthier, more robust investment strategy
Sources and References*
India Anti-Obesity Drug Market Competitive Landscape - Edition 2024
https://www.morganstanley.com/ideas/obesity-drugs-food-industry
Anti-obesity drug market gaining traction in India - The Economic Times
https://www.morganstanley.com/ideas/obesity-drugs-market-expanded-opportunity
Al tools
Disclosure
Disclosure Disclosures as required under SEBI (Research Analyst) Regulations, 2014 Introduction: I am Parag Ashok Gowalkar. Research Analyst registered with SEBI having registration no. INH000014696. I provide research services on equity stocks listed on Indian stock exchanges. Business Activity: The research is based en fundamental analysis. I do thorough research and analysis on fundamentals of companies. As such, I undertake extensive scrutiny of major Company statistics like Balance Sheet, Profit & Loss Account, Key Financial Ratios (ROE, ROCE and Debt to Equity etc.), Quarterly, Half-yearly & Annual Results, Cash Flows, Annual Reports and Shareholding Pattern etc. The referential numbers and the figures in the calculation of the report are available in public domains. Each Company's Business Model, Future Projections and Competitive Advantages are thoroughly checked before recommending their stocks. Risks: Trading and investment in securities are subject to market risks. There are no assurances or guarantees that the objectives of any of trading/investment in securities will be achieved. The names of securities mentioned herein do not in any manner indicate their prospects or returns. The value of securities referred to herein may be adversely affected by the performance or otherwise of the respective issuer companies, changes in the market conditions, micro and macro factors and forces affecting capital markets like interest rate risk, credit risk, liquidity risk and reinvestment risk. Derivative products may also be affected by various risks including but not limited to counter party risk, market risk, valuation risk, liquidity risk and other risks Besides the price of the underlying asset, volatility, tenor and interest rates may affect the pricing of derivatives.
Disciplinary History
There is no disciplinary action which is/was running/initiated against me or my firm and there are Disclosure with regards to ownership and material conflicts of interest: 1. Neither I nor my associates/relatives have financial interest in the subject company. 2.
Neither I nor my relatives/associates have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document. 3. Neither I nor my relatives/associates have any other material conflict of interest at the time of publication of the document. Disclosure with regards to receipt of compensation: 1. Neither I nor my associates/relatives have received any compensation from the subject company in the past 12 months. 2. Neither I nor my associates/relatives have managed or co-managed public offering of securities for the subject company in the past 12 months. 3 Neither I nor my associates/relatives have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. 4. Neither I nor my associates/relatives have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. 5. Neither I nor my associates/relatives have received any compensation or other benefits from the subject company or third party in connection with the document. General Disclosures: 1. I have not served as an officer, director or employee of the subject company. 2. I am not engaged in market making activity for the subject company "Investments in Securities Market are subject to market risks Read all the related documents carefully before investing "Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors
Parag Ashok Gowalkar
SEBI Registered Research Analyst Reg. No. INH000014696
The "Finternet" is a blend of Finance and Internet. It refers to the combination of internet and digital technology in the financial services industry. This includes online banking, digital payments, blockchain technologies, and financial apps. In essence, it's about how the internet is transforming the way we handle money, manage assets, and interact with financial institutions.
Decentralization: Traditional banking systems are centralized. The Finternet, primarily through blockchain technology, enables decentralized systems. This removes middlemen, reduces costs, and improves transparency.
Example: Cryptocurrencies like Bitcoin operate on decentralized blockchain technology, allowing peer-to-peer transactions without needing a bank.
Access to Financial Services: Finternet provides greater access to financial services, especially in underserved regions. Mobile banking and cryptocurrencies enable financial transactions without physical bank branches.
Example: Mobile payment platforms like Paytm in India enable people to transfer money, pay bills, and shop online without a bank account.
Speed and Efficiency: Technologies like blockchain and AI speed up transactions, making them more efficient and reducing costs. Smart contracts can automate processes in finance, reducing human error.
Example: Smart contracts in Ethereum allow automatic execution of contracts when conditions are met, such as releasing funds for a project when milestones are achieved.
New Business Models: Fintech companies using advanced technology are creating new business models like peer-to-peer lending and robo-advisory.
Example: Lending platforms like Lending Club enable people to lend money directly to others, bypassing traditional banks.
Personalization and Data Analytics: AI and machine learning can tailor financial services based on individual data and preferences.
Example: Apps like Mint use AI to provide personalized budgeting and financial advice based on your spending habits.
Improved Security: Blockchain and other secure technologies can reduce fraud and offer more secure transactions. Biometric verification and two-factor authentication enhance security.
Example: Using fingerprints or facial recognition to access your mobile banking app ensures that only you can access your account.
Easier Access to Services: Mobile payments and digital wallets make transactions quick and easy, even without a bank account.
Example: Using Google Pay to split a bill at a restaurant with friends.
Financial Inclusion: People in remote areas can access financial services, apply for loans, or invest in markets, improving economic conditions.
Example: Farmers in rural India using microfinance apps to get small loans for agricultural activities.
Improved User Experience: Interaction with financial services becomes more user-friendly and personalized.
Example: Robo-advisors like Betterment provide customized investment strategies based on your financial goals.
Lower Costs for Services: The digital nature of Finternet reduces operational costs for financial institutions, leading to lower fees for services.
Example: Low-cost international money transfers using platforms like TransferWise.
Smart Financial Products: Participation in decentralized finance products, crowdfunding, and microfinance services democratizes financial opportunities.
Example: Investing in decentralized finance projects through platforms like Compound Finance.
Financial Literacy: Simplified financial processes help people understand financial concepts better, aided by automated tools and educational content.
Example: Using apps like e-learn Academy for learning about personal finance and investing.
Blockchain & Cryptocurrencies:
Decentralized Finance Platforms: Opportunities for creating decentralized lending, borrowing, and trading services.
NFTs: Expanding use cases in gaming, real estate, and intellectual property.
Fintech Innovations:
Digital Payments & Wallets: Developing new mobile wallets and payment systems.
Robo-Advisors: Starting businesses that provide AI-powered investment advice.
Artificial Intelligence & Machine Learning:
Predictive Analytics: Analyzing market trends to make informed investment decisions.
Fraud Detection: AI tools improving fraud detection and compliance.
Cybersecurity:
Blockchain Security Solutions: Developing better cybersecurity solutions for blockchain technology.
Biometric Authentication: Creating sophisticated biometric solutions for secure access.
(Regulatory Technology:
Building automated systems for regulatory compliance (KYC, AML, GDPR).
Financial Literacy & Education:
Education Tech for Finance: Creating online courses and platforms for financial education.
Financial Wellness Programs: Providing financial wellness services to companies.
Green Finance:
Sustainable Investment Platforms: Creating platforms for investing in eco-friendly initiatives.
Carbon Credit Markets: Enabling the trading of carbon credits through blockchain.
Leveraging Opportunities across Business
Businesses are leveraging the Finternet to innovate, streamline operations, and enhance customer experiences. Here are some ways they are doing this:
Example: Banks are offering online services such as opening accounts, applying for loans, and managing investments through user-friendly apps and websites. This reduces the need for physical branches and makes banking more accessible to customers.
Example: Companies like PayPal and Stripe facilitate online transactions for businesses, allowing them to accept payments from customers worldwide quickly and securely. This is essential for e-commerce and global trade.
Example: Financial institutions and startups are using blockchain technology to create decentralized financial services, such as smart contracts and decentralized exchanges. These innovations reduce costs, increase transparency, and offer new investment opportunities.
Example: AI is used for predictive analytics, personalized marketing, fraud detection, and customer service. Chatbots powered by AI provide instant support and can handle a large volume of inquiries efficiently.
Case: Banks use AI to analyze transaction data and detect fraudulent activities in real time, preventing financial losses.
Example: Fintech firms offer robo-advisors that use algorithms to manage investment portfolios. These services are cost-effective and accessible to individuals with varying levels of investment experience.
Platform: Companies like Wealthfront and Betterment use robo-advisors to provide personalized investment advice and portfolio management.
Example: Insurance Technology companies are leveraging digital platforms to offer on- demand insurance, usage-based policies, and seamless claims processing.
Company: Lemonade uses AI to provide quick insurance quotes and instant claim approvals, enhancing customer satisfaction.
Example: Decentralized Finance platforms offer financial services like lending, borrowing, and trading without traditional intermediaries. This democratizes access to financial services and creates new investment opportunities.
It’s a bright morning, and you’re strolling through your city, sipping on your favorite coffee. As you pass a bustling street, something catches your eye—a metro station under construction. At first, it seems like just another development project, but then a thought strikes you:
Who is behind all this?
Suddenly, this simple metro expansion isn’t just about transportation anymore—it’s an entire economic ecosystem fueling multiple industries. And just like that, you’ve taken your first step into understanding how the stock market works.
The Economics of a Pizza Party -
Let’s bring this even closer to your life. Imagine it’s a weekend, and you and your friends decide to celebrate by ordering a pizza. You tap your phone, place an order, and in no time, your cheesy delight arrives at your doorstep. But have you ever thought about the financial web behind this?
A simple pizza party is actually a business network in motion! If so much economic activity stems from a single order, imagine the investment opportunities hiding in plain sight.
The case of 26th January Parade in India -
Now, let’s take something even grander—the Republic Day Parade on 26th January. You watch in awe as tanks roll down Rajpath, fighter jets zoom across the sky, and vibrant cultural displays showcase India’s diversity. But have you considered the industries involved in making this event spectacular?
Scene 1: The Mighty March of Defense & Tech
As the parade begins, tanks, missiles, and cutting-edge aircraft roll down Rajpath (now Kartavya Path). Companies like Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL) are behind these machines of power. When you see the indigenous Tejas fighter jet or advanced radar systems, think of HAL and BEL as companies pushing India towards self-reliance in defense manufacturing.
Investment Angle: With India focusing on reducing defense imports and boosting local production, stocks in this sector could be a goldmine. A young investor might explore the long-term growth potential in government-backed defense companies and private sector suppliers.
Scene 2: The Cyber Warriors and Space Pioneers
As the parade continues, a float showcasing India’s advancements in cybersecurity and space technology appears. Organizations like ISRO, along with private players like Larsen & Toubro (L&T) and Bharat Dynamics, are making strides in satellite technology, missile defense, and AI-driven warfare.
Investment Angle: India’s push towards digital and space defense makes tech and cybersecurity firms attractive investments. The rise of AI-powered defense tools can also make IT companies like Tata Consultancy Services (TCS) and Infosys key players in the sector.
Scene 3: The “Make in India” Industrial Push
Another impressive sight—drones flying in formation, electric military vehicles rolling past, and cutting-edge robotics displayed. These are results of India’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, aimed at reducing reliance on foreign imports and fostering local industrial giants.
Investment Angle: Companies leading the charge in drone manufacturing (like ideaForge), electric vehicle (EV) technology, and industrial automation could see exponential growth in the coming years.
Scene 4: The Future of Defense & Investment Strategy
As the parade concludes with a breathtaking airshow by the Indian Air Force, young investors should take a step back and analyze what they just witnessed—not just as a patriotic spectacle but as a roadmap for future economic growth.
Key Takeaways for Investors:
Defense & Aerospace Stocks: India is set to become a global defense supplier. Investing in government-backed and private defense firms can be lucrative. Blog - The Hidden Clues to Wealth 5 Technology & Cybersecurity: With digital warfare and AI integration, tech giants will play a crucial role in India’s defense strategy.
Manufacturing & Infrastructure: Companies involved in industrial production, drone technology, and EVs could see significant policy-backed growth.
The next time you watch the Republic Day Parade, think about the businesses quietly profiting behind the scenes. Recognizing such patterns can help you spot smart investment opportunities.
Connecting the Dots: Your Journey into Investing
Most beginners study stocks by diving straight into balance sheets, earnings reports, and price charts. But what if we flipped the approach? What if, instead of numbers, we started by observing the world around us?
Here’s how you can start:
Navigate the Investing Journey –
Investing isn’t just about numbers on a screen—it’s about understanding how money moves in the real world. Every purchase, trend, and event has hidden investment clues. Let’s break it down.
Have you ever noticed investors like R.K. Damari discussing technical levels of a stock or index, or focusing on valuation indicators like the Price-to-Earnings (PE) ratio?
Then what they talk on – Broader Picture & Perspectives
As we progress on the path of becoming successful investors, our perspective on the market should go beyond the conventional approach, allowing us to see opportunities that others may overlook. While studding the opportunities in stock market, one should adopt a structured approach to cultivating ideas, thoroughly evaluating them from all angles with sharp observations, and diving deeper into critical analysis to identify potential companies worth consideration.
What Can I Avoid – When we are studying Markets we should know what to look for but we must know what to ignore. By filtering out market noise, focusing on genuine trends, and maintaining a structured analytical approach, one can navigate the stock market with confidence and precision.
Your Edge as a Young InvestorThe successful investors don’t just read reports—they see opportunities where others don’t. As a young investor, you have an advantage. You are immersed in emerging trends before they become mainstream. You see what’s gaining popularity before it hits financial news.
The stock market isn’t a mystery—it’s a real-world reflection of economic activity happening all around you. If you start viewing daily life as an investor, you’ll see opportunities everywhere.
Conclusion: Investing with Clarity and a Long-Term Vision
The stock market is about understanding the broader ecosystem, identifying emerging trends, and analyzing the shifts driven by government policies and industry evolution. Just like a simple pizza order involves an entire supply chain of farmers, logistics, manufacturers, and retailers, every investment opportunity is a result of interconnected forces at play.
By developing a habit of deep analysis, studying economic shifts, and observing realworld applications of market trends, investors can uncover valuable long-term opportunities. This approach not only helps in making informed decisions but also shields investors from the distractions of short-term market noise
True success in investing comes from maintaining a disciplined perspective—one that looks beyond daily fluctuations and focuses on sustainable growth. By continuously refining our thought process and staying committed to insightful research, we can navigate the market with confidence and clarity, positioning ourselves for long-term wealth creation.
So, next time you order a pizza, watch a parade, or pass a construction site—ask yourself: Who’s making money from this? Your journey into wealth creation starts there.
Reference Note - Explore blogs authored by Parag Gowaikar (SEBI Registered Research Analyst Reg. No. INH000014696), focusing on everyday topics –
Disclosure
Disclosure Disclosures as required under SEBI (Research Analyst) Regulations, 2014 Introduction: I am Parag Ashok Gowaikar, Research Analyst registered with SEBI having registration no. INH000014696. I provide research services on equity stocks listed on Indian stock exchanges. Business Activity: The research is based on fundamental analysis. I do thorough research and analysis on fundamentals of companies. As such, I undertake extensive scrutiny of major Company statistics like Balance Sheet, Profit & Loss Account, Key Financial Ratios (ROE, ROCE and Debt to Equity etc.), Quarterly, Half-yearly & Annual Results, Cash Flows, Annual Reports and Shareholding Pattern etc. The referential numbers and the figures in the calculation of the report are available in public domains. Each Company’s Business Model, Future Projections and Competitive Advantages are thoroughly checked before recommending their stocks. Risks: Trading and investment in securities are subject to market risks. There are no assurances or guarantees that the objectives of any of trading / investment in securities will be achieved. The names of securities mentioned herein do not in any manner indicate their prospects or returns. The value of securities referred to herein may be adversely affected by the performance or otherwise of the respective issuer companies, changes in the market conditions, micro and macro factors and forces affecting capital markets like interest rate risk, credit risk, liquidity risk and reinvestment risk. Derivative products may also be affected by various risks including but not limited to counter party risk, market risk, valuation risk, liquidity risk and other risks. Besides the price of the underlying asset, volatility, tenor and interest rates may affect the pricing of derivatives. Disciplinary History There is no disciplinary action which is / was running / initiated against me or my firm and there are Disclosure with regards to ownership and material conflicts of interest: 1. Neither I nor my associates / relatives have financial interest in the subject company. 2. Neither I nor my relatives / associates have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document. 3. Neither I nor my relatives /associates have any other material conflict of interest at the time of publication of the document. Disclosure with regards to receipt of compensation: 1. Neither I nor my associates / relatives have received any compensation from the subject company in the past 12 months. 2. Neither I nor my associates / relatives have managed or co-managed public offering of securities for the subject company in the past 12 months. 3. Neither I nor my associates / relatives have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. 4. Neither I nor my associates / relatives have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. 5. Neither I nor my associates / relatives have received any compensation or other benefits from the subject company or third party in connection with the document. General Disclosures: 1. I have not served as an officer, director or employee of the subject company. 2. I am not engaged in market making activity for the subject company. ❖ “Investments in Securities Market are subject to market risks. Read all the related documents carefully before investing”. ❖ “Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors”. Parag Ashok Gowaikar SEBI Registered Research Analyst Reg. No. INH000014696