, 2020 S tock TALES - ICICI Directcontent.icicidirect.com/...StockTales_Apr20.pdf · ICICI Direct ResearchStock Tales Company Background | Mishra Dhatu Nigam Mishra Dhatu Nigam (Midhani)

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TALES

April 23, 2020

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CMP: | 209 Target: | 256 (22%) Target Period: 12 -18 months

Mishra Dhatu Nigam (MISDHA)

BUY

On strong footing....

Mishra Dhatu Nigam (Midhani), a Mini Ratna (Category – I) company, is a

leading manufacturer of special steel, super alloys & titanium alloys catering

to niche end-user segment like space, defence, energy, etc. Within the

overall steel market, Midhani’s area of focus is on speciality steel (nickel

based alloys and speciality alloys). These alloys are used across end user

applications that require reduced weight, high strength & toughness and

high corrosion & oxidation resistance. Despite high cost when compared to

conventional steel & alloy grades, the select products are preferred for high-

end applications (space, defence, etc) where efficiency and precision is of

prime importance. Midhani is in the business of manufacturing these high-

value added products wherein majority of orders executed are import

substitute. Over the years, Midhani has acquired competence to develop

and manufacture customised alloys tailor-made to suit the specific

requirements of customers for their critical applications.

Healthy traction in Isro budget augurs well for Midhani….

During FY11-20, the government’s budget allocation to Isro has increased at

a healthy pace of 13% to | 13139 crore (Revised Budget of FY20). Of this, a

majority of increase is driven by a rise in Isro’s capital expenditure, which

has augured well for speciality steel supplier like Midhani. Over the last few

years, space segment has emerged as a key user industry that has aided the

company’s overall financial performance. Midhani’s space sector order book

has increased from | 108 crore in FY12 to | 1280 crore in FY19.

EBITDA margins on uptrend on higher space sector orders….

Typically, for Midhani, space sector orders are higher margin orders (at

EBITDA level space sector margin are 2x defence). Higher proportion of

space sector orders being executed has aided Midhani’s margin expansion.

The space sector contribution in aggregate topline has steadily increased

from 5% in FY16 to 55% in H1FY20. Generally, as the space sector

commands higher operating margins, the higher contribution by the same

has aided in margin expansion (from 25.8% in FY19 to 29.2% in 9MFY20).

Valuation & Outlook

On account of its high-end speciality product basket, Midhani distinguishes

itself from a normal steel producer. Hence, unlike a commodity company,

Midhani has not witnessed cyclicality in earnings wherein (since FY15) the

company has been able to consistently report 21%+ EBITDA margins and

17%+ RoCE. With a healthy proportion of space sector orders in the overall

order book, we expect overall EBITDA margins to remain firm in the ~30%

range for the next couple of years. Going forward, in FY19-22E, we expect

topline, EBITDA and PAT to grow at a CAGR of 12%, 18% and 19%,

respectively. We value the stock at 20x FY22E EPS and arrive at a target price

of | 256. We assign a BUY rating to the stock. Key risk to our call is any

notable slowdown in space contract order inflow/execution.

Key Financial Summary

s

(| crore) FY18 FY19 FY20E FY21E FY22E FY19-22E CAGR ( in %)

Total Operating incme 661.7 710.8 711.4 808.7 1,004.0 12

EBITDA 190.9 183.7 209.9 240.6 301.2 18

EBITDA Margin (%) 28.8 25.8 29.5 29.8 30.0

Net Profit 131.3 130.6 156.9 178.3 217.9 19

Diluted EPS (|) 7.0 7.0 8.4 9.5 11.6

P/E 30.3 30.4 25.3 22.3 18.2

RoE (%) 16.6 15.6 17.3 17.8 19.2

RoCE (%) 19.4 17.1 18.0 19.0 21.1

Source: Company, ICICI Direct Research

v

Particulars

Particulars Amount

Market Capitalisation (in | crore) 3,970.8

Debt in | crore (FY19) 106.7

Cash & Cash Eq. in | crore (FY19) 198.0

EV (in | crore) 3,879.5

52 Week H / L (|) |278/|109

Equity Capital (| crore) 187.3

Face Value (|) 10.0

Price Performance

Key Highlights

Healthy outstanding order book of |

1776 crore as on January 2020,

driven by strong traction witnessed

in space sector vertical

Recommend BUY on stock with

target price of | 256

Research Analyst

Dewang Sanghavi

[email protected]

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Midhani NSE500 Index (RHS)

ICICI Securities | Retail Research 2

ICICI Direct Research

Stock Tales | Mishra Dhatu Nigam

Company Background

Mishra Dhatu Nigam (Midhani) was established in 1973, with the aim of

achieving self-reliance in research, development and supply of critical alloys

and products of national security and strategic importance. Midhani is

engaged in manufacturing a wide range of special metals and alloys. The

company’s products have superior mechanical properties and better

workability, which are essential for special applications in aerospace, power

generation, nuclear, defence and other general engineering. In 2009,

Midhani was accorded Mini Ratna (Category – I) status by the Ministry of

Defence (MoD).

The company manufactures special steel like martensitic steel, ultra-high

strength steel, austenitic steel and precipitation hardening steel. The super

alloys division manufactures three kinds of super alloys – nickel based, iron

based and cobalt based. Midhani is also the sole manufacturer of titanium

alloys in India. The company has competence in developing and

manufacturing customised alloys tailor-made to suit the specific

requirements of customers for their critical applications. Midhani has several

certifications including ISO 9001:2008 – quality management system and

AS9001 C for manufacturing and supply of metals & alloy products. The

company’s research & development (R&D) laboratory is also accredited to

the National Accreditation Board for Testing and Calibration Laboratories.

Exhibit 1: Trend in revenue (| crore) & EBITDA margin (%)


Exhibit 2: Trend in sales volume (in tonnes)

Source: Company, ICICI Direct Research,

Exhibit 3: Trend in blended realisations (in | lakh/tonne)


647 717 773 662 711

20.8 21.1

24.0

28.8

25.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

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FY15 FY16 FY17 FY18 FY19

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(in

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rore)

4732

5205

6150

4477

3685

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(in

tonnes) 13.9

14.6

13.2

14.9

19.3

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5.0

10.0

15.0

20.0

25.0


(in

| lakhs p

er t

onne)




Investment Rationale

Healthy traction in Isro budget augurs well for Midhani….

During FY11-20, the government’s budget allocation to Isro increased at a

healthy pace of 13% to | 13139 crore (Revised Budget of FY20). Of this, a

majority of the increase is driven by a rise in Isro’s capital expenditure (as

depicted in Exhibit 4), auguring well for speciality steel supplier like Midhani.

Over the last few years, the space segment has emerged as a key user

industry, which has aided the company’s overall financial performance.

Midhani’s space sector order book has increased from | 108 crore in FY12

to | 1280 crore in FY19.

Exhibit 4: Budget allocation towards Isro on uptrend…


Generally, as the space sector commands higher operating margins, the

higher contribution by the same has aided in margin expansion (from 25.8%

in FY19 to 29.2% in 9MFY20). Majority of Midhani’s supplies to Isro within

the space sector are maraging steel (a nickel heavy alloy steel). Typically,

the orders for maraging steel are received on a nomination basis while

pricing is done by bilateral negotiation on a cost-plus basis. Generally,

Midhani commands healthy margin (above the blended average) in

maraging steel as there is a lengthy time period for joint development of

product with Isro. Hence, a higher share of maraging steel in aggregate

orders is likely to result in healthier operating margins.

Going forward, India Space Research Organisation (Isro) has slated 36

missions for the next two years. These will include milestone missions like

Chandrayaan-3 (moon lander mission) and an uncrewed mission for

Gaganyaan (human flight mission). During 2020-21, Isro has scheduled the

launch of several satellites including 10 earth observation satellites, three

communication satellites, two navigation satellites and three space science

satellites. Among rocket launches, Isro has scheduled launches of 10 PSLVs,

three GSLV MK II, and one GLSV MK III. In addition, two small satellite launch

vehicles are also planned for 2020-21. For 2019 and 2020, Isro has

successfully completed 11 out of the total targeted missions—four Earth

observation satellites, Chandrayaan-2, four PSLVs and one communications

and one space science satellite. One of the most anticipated upcoming

missions of the space agency, Gaganyaan, is scheduled for launch in 2022.

However, before that, Isro is likely to send two uncrewed missions — one

by the end of 2020 and another by mid-2021. The precursor missions are

supposed to carry a humanoid robot that will study the environment and

perform all tasks designated for humans to be conducted in orbit.

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FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 REFY20

(|

crore)

Main components of maraging steel are a) pure iron

(with nitrogen and oxygen concentration of less than

20 ppm) mainly imported, b) nickel 18%, c) cobalt

12% and d) Molybdenum ~5%.




Space sector contributes ~43% of total revenue in FY19…

In terms of key customers, space and defence sector are the two key

verticals accounting for a lion’s share of Midhani’s topline and order book.

Over the years, Midhani’s capability of supplying niche steel to defence

sector has been its key strength. Traditionally, the defence segment had

been the key customer of Midhani (that includes supplies for Akash missiles

and submarines). However, post FY15, with launches by Isro gaining

traction, there has been a higher contribution by the space segment. Over

the last two to three years, Midhani has witnessed healthy traction in space

sector orders, resulting in higher execution of the same. Space sector

contribution in aggregate topline has steadily increased from 5% in FY16, to

22% in FY17, 30% in FY18 and further to 43% in FY19. Generally, as the

space sector commands higher operating margins, the higher contribution

by the same has aided in margin expansion.

Exhibit 5: Execution of space segment orders has seen

increasing trend since FY16…


Exhibit 6: …subsequently resulting in higher share of

contribution of space segment in overall revenue…


Current order book ~2.5x FY19 topline…..

After registering a flattish trend in FY17 and FY18, Midhani’s order book

witnessed a remarkable increase in FY19 and 9MFY20, auguring well for the

company. Midhani’s order book was at | 651 crore at the end of FY17 and

| 569 crore at the end of FY18. However, since March 2018, on the back of

receipt of healthy orders from the space segment, Midhani’s order book

increased to | 1660 crore at the end of FY19 and further to | 1776 crore as

on January 2020. Currently, order book is ~2.5x FY19 topline, thereby

providing healthy revenue visibility (FY19 topline was at | 711 crore).

Exhibit 7: Upsurge in order book...

Source: Company, ICICI Direct Research, The Cumulative Order book as on January 2020 is |1776 crore.

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Order executed

Others Defence Space

12% 6% 12%

26%

84%

72% 58% 30%

5%

22%30%

43%

0%

20%

40%

60%

80%

100%

FY16 FY17 FY18 FY19

Share of topline


FY16 FY17 FY18 FY19

Space 325 60 114 1280

Defence 551 226 385 184

Others 33 35 137 380

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The rise in capability of Vikram Sarabhai Space

Centre (VSSC) has aided the upsurge in space sector

order book of Midhani. VSSC is a major space

research centre of Isro, focusing on rocket and space

vehicles for India's satellite programme

Notable portion of Midhani’s capex funded by its

customers, which augurs well for the company




Healthy traction in space sector order book….

Over the last few quarters, there has been a steady increase in Midhani’s

order book driven by strong traction in the space sector. As on January 1,

2020, Midhani’s order book was at | 1776 crore. Going forward also, strong

traction is expected in the company’s order book, which will ensure healthy

revenue visibility. Of the total order book, ~| 800 crore is a one-year cycle

order book while balance ~| 800-900 crore is two-year cycle order book.

Going forward, ~| 800-900 crore of order inflow is expected every year of

which ~| 300-400 crore worth of orders are expected from the space

vertical, ~| 250-300 crore worth of orders are expected from the defence

vertical while balance orders are likely to come from others segment.

Furthermore, over the next two to three years, the management expects the

current order book of ~| 1776 crore to normalise to ~| 900 crore. This

indicates swift execution of orders in the near term.

Well-placed to capitalise on growth opportunities….

In future, Midhani plans to grow (through both greenfield & brownfield route)

based on development of technology for customers & product. It also seeks

to enter new markets of oil & gas, mining, power, railways, chemicals,

fertilisers, etc. Also, with the aim to expand its geographical presence,

Midhani is in the process of setting up two new manufacturing facilities in

Rohtak (armoured products manufacturing plant) and Nellore (Aluminium

alloy plant). Of the two new plants, the Rohtak plant would be operational

first and is likely to be fully operational by September 2020. Midhani has also

entered into collaborations with Indian & international research institutions

to gain capabilities for developing advanced technology products that will

aid import substitution.

EBITDA margins to remain flattish at ~30%…

For 9MFY20, Midhani reported an EBITDA margin of 29.0% against an

EBITDA margin of 25.8% in FY19. The increase in EBITDA margin was

primarily driven by higher proportion of space sector orders executed in

9MFY20 compared to FY19. Space segment orders generally yield higher

operating margins compared to average margins, which aided margin

expansion for Midhani. Even for the outstanding order book of | 1776 crore,

a healthy ~70% of the order book is from the space sector (Isro). While there

is a healthy proportion of space sector orders in the overall order book, we

do not expect any notable uptick in margins because of Covid-19 related

concerns, which may lead to postponement of some orders. Hence, we

expect the company to witness a flattish trend in EBITDA margins.

Exhibit 8: Trend in EBITDA margin


28.8

25.8

29.5 29.8 30.0

20.0

25.0

30.0

35.0

FY18 FY19 FY20E FY21E FY22E

(in

%)




Covid-19 related issues to postpone order execution….

In view of the global outbreak of Coronavirus Disease (Covid-19), Midhani

had received directives from Department of Public Enterprise (DPE) to

operate with skeletal staff between March 23, 2020 and March 31, 2020. The

company being a central public sector enterprise is complying with the

above directives issued by DPE. The Covid-19 lockdown impacted the final

testing, certification and shipment of materials in March 2020, thereby

impacting Midhani’s Q4FY20 performance. Hence there would be some

postponed of orders, which would spill over. With the lockdown being

extended till May 4, 2020, we expect Midhani’s H1FY21E performance to

also be soft as post lifting of lockdown there is likely to be a gradual pick-up

in order execution.

On account of Covid-19 related issues, the topline is likely to be flattish YoY

for FY20 (vis-à-vis FY19), against 37% YoY growth till 9MFY20. In a normal

scenario, the company would have grown at a healthy pace (as witnessed

in 9MFY20). However, Covid -19 related concerns have slowed down its

growth trajectory. Furthermore, even though 70% of Midhani’s order book

is skewed towards the space sector (which is generally higher margin), we

expect blended EBITDA margins to remain flattish, on expectations of a

muted H1FY20.

Nalco-Midhani JV to set up high-end aluminium alloy plant

Nalco has entered into a pact with Midhani to incorporate a joint venture to

set up a high-end aluminium alloy plant. The plant is expected to be

operational in the next four to five years and is likely to have a capacity of

~60000 tonnes. The blended per tonne realisation is expected to be in the

range of ~| 400000 per tonne and is likely to cater to demand from railways,

defence, aerospace and auto sector. Currently ~30000-35000 tonnes is

imported in this category. By the time the plant gets commissioned, overall

demand is likely to go up to 130000 tonnes. With regard to funding, the

company may get a third party if it agrees to come for a small stake. It is also

exploring an option to fund through compulsory convertible debentures

(CCD)/normal debt from banks, in which case third party funding will not be

required.




Financial story in charts

Exhibit 9: Trend in total operating income (in | crore)

Source: Company, Reuters, ICICI Direct Research

Exhibit 10: Trend in EBITDA (in | crore)


Exhibit 11: Trend in net profit (in | crore)


662711 711

809

1004

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Exhibit 12: Valuation Matrix

Years Total Op Income Growth EPS Growth PE EV/EBITDA RoNW RoCE

(| cr) (%) (Rs) (%) (x) (x) (%) (%)

FY18 661.7 -14.4 7.0 3.9 30.3 20.4 16.6 19.4

FY19 710.8 7.4 7.0 -0.5 30.4 21.1 15.6 17.1

FY20E 711.4 0.1 8.4 20.2 25.3 18.2 17.3 18.0

FY21E 808.7 13.7 9.5 13.7 22.3 15.9 17.8 19.0

FY22E 1004.0 24.1 11.6 22.2 18.2 12.8 19.2 21.1


Exhibit 13: Top 10 Shareholders

Rank Name Latest Filing % O/S Position (m) Change (m)

1 Government of India 30-06-2019 74.0 138.6 0.0

2 HDFC Asset Management 31-12-2019 7.2 13.4 0.6

3 Life Insurance Corporation 30-06-2019 6.6 12.3 -1.7

4 Reliance Capital Trust 31-12-2019 3.3 6.1 0.0

5 Invesco India Asset 31-12-2019 2.9 5.4 0.3

6 New India Assurance 30-06-2019 1.3 2.4 0.0

7 General Insurance Co. 30-06-2019 1.1 2.1 0.0

8 Van Eck Associates 23-01-2020 0.1 0.2 0.0

9 Dimensional Fund Adv. 30-11-2019 0.0 0.0 0.0

10 ICICI Prudential Assets. 31-12-2019 0.0 0.0 0.0

Source: Reuters, ICICI Direct Research

Exhibit 14: Shareholding pattern





Financial summary

Exhibit 15: Profit and loss statement | crore


Exhibit 16: Cash flow statement | crore


Exhibit 17: Balance sheet | crore


Exhibit 18: Key ratios | crore


(Year-end March) FY19 FY20E FY21E FY22E

Total Operating Income 711 711 809 1,004

Growth (%) 7% 0% 14% 24%

EBITDA 184 210 241 301

Growth (%) -4% 14% 15% 25%

Interest & Finance Cost 6 5 5 5

Depreciation 23 27 30 39

Other Income 37 32 33 34

PBT before Exceptional Items 191 210 238 291

Less: Exceptional Items 0 0 0 0

PBT 191 210 238 291

Total Tax 60 53 60 73

PAT 131 157 178 218

Growth (%) -1% 20% 14% 22%

EPS 7.0 8.4 9.5 11.6


Profit/(Loss) after taxation 131 157 178 218

Add: Dep. & Amortization 23 27 30 39

Net (Inc) / dec.in Current Asset (281) (3) (126) (180)

Net Inc / (dec) in Current Liab. 95 43 78 95

CF from Operating Actv. (32) 224 161 173

(Inc)/dec in Investments - - - -

(Inc)/dec in Fixed Assets (214) (225) (200) (200)

Others - - - -

CF from Investing Actv. (214) (225) (200) (200)

Inc / (Dec) in Equity Capital - - - -

Inc / (Dec) in Loans 14 - - -

Dividend & Dividend Tax (85) (84) (84) (84)

Others 336 156 102 100

CF from Financing Actv. 264 72 18 16

Net Cash flow 18 71 (21) (11)

Opening Cash 180 198 269 248

Closing Cash 198 269 248 236


Equity Capital 187 187 187 187

Reserve and Surplus 647 720 814 948

Total Shareholders funds 835 907 1001 1135

Total Debt 107 107 107 107

Other Non-Current Liabilities 416 566 666 766

Deferred Tax Liability (net) 40 45 51 59

Source of Funds 1397 1625 1826 2067

Gross Block - Fixed Assets 499 674 749 974

Accumulated Depreciation 74 101 131 170

Net Block 425 573 618 804

Capital WIP 175 225 350 325

Net Fixed Assets 600 798 968 1129

Investments 2 2 2 2

Inventory 509 507 576 688

Cash 198 269 248 236

Debtors 352 341 388 440

Loans & Advances & Other CA 105 121 130 146

Total Current Assets 1164 1237 1342 1510

Creditors 129 117 133 165

Provisions & Other CL 299 353 415 478

Total Current Liabilities 427 470 548 643

Net Current Assets 736 767 793 866

Other Non-current assets 59 58 62 70

Application of Funds 1397 1625 1826 2067


Per share data (|)

EPS 7.0 8.4 9.5 11.6

BV 44.6 48.4 53.4 60.6

DPS 3.8 3.8 3.8 3.8

Cash Per Share 10.6 14.4 13.2 12.6

Operating Ratios (%)

EBITDA margins 25.8 29.5 29.8 30.0

PBT margins 26.9 29.5 29.5 29.0

Net Profit margins 18.4 22.1 22.0 21.7

Inventory days 261 260 260 250

Debtor days 181 175 175 160

Creditor days 66 60 60 60

Return Ratios (%)

RoE 15.6 17.3 17.8 19.2

RoCE 17.1 18.0 19.0 21.1

RoIC 21.6 24.6 24.5 26.1

Valuation Ratios (x)

P/E 30.4 25.3 22.3 18.2

EV / EBITDA 21.1 18.2 15.9 12.8

EV / Revenues 5.5 5.4 4.7 3.8

Market Cap / Revenues 5.6 5.6 4.9 4.0

Price to Book Value 4.8 4.4 4.0 3.5

Solvency Ratios

Debt / Equity 0.1 0.1 0.1 0.1

Debt/EBITDA 0.6 0.5 0.4 0.4

Current Ratio 2.7 2.6 2.4 2.3

Quick Ratio 1.5 1.6 1.4 1.3




Annexure

Exhibit 19: Overview of application of speciality steel

Select High Value Speciality

Steel Grades

Key End User Segment Application Area

Nickel Alloy

• Aeronautical

• Defence

• Auto Components

• Industrial Machinery

• Landing Gears

• Suspension Systems

• Braking Systems

• Crankshafts, Gears, Castings

High Strength Armour Grades

• Defence Vehicles for combat

• Armoured Vehicles

• SWAT Vehicles

• Ceilings

• Walls

• Doors

Martensitic Stainless Steel

• Aerospace

• Consumer Durables

• Medical

• Chemical

• Tools & Machineries

• Valve Parts

• Multi-purpose tools

• Surgical Instruments

• Shears

Ferritic Stainless Steel

• Aerospace

• Automotive

• Oil & Gas

• Chemical Plants

• Power Plants

• Processing Industries

• Exhaust Systems

• Automotive Exhaust Systems

• Heat Exchangers

• Furnace Combustion

Chamber

• Chemical and oil refinery

Asutenitic Stainless Steel

• Automotive

• Food Processing

• Chemical

• Pharmaceuticals

• Automotive Trim

• Food & Beverage Equipment

• Process Equipment

Precipitation Hardening Steel (PH)

• Aerospace

• Oil & Gas

• Power Plants

• Chemical Plants

• Exhaust Systems

• Oil Patch

• Pump Shafts

• Mechanical Seal





Exhibit 20: Overview of application of superalloys

Super Alloy Grades Key End User Segment Application Area

Nickel Based Super Alloy

• Aeronautical

• Power Plants

• Oil & Gas

• Chemical Plants

• Jet Engine components

• Air frames

• Gas turbines

• Combusters

• Heat exchanger tubing

• Pump Motor Shaft

• Cyrogenic tanks

Iron Based Super Alloy

• Processing Industries

• Chemical Plants

• Power Plants

• Industrial Machineries

• Oil & Gas

• Processing Equipment

• Pre & Super Heaters

• Steam boilers

• Piping applications

• Industrial furnaces

• Valves & Fittings

Nickel - Iron Based Super Alloy

• Aerospace

• Defence

• Electric Appliances

• Power



• Navigating Systems

• HV Transmission Lines

• Heaters

• Composite Moulds

• Electric Furnace

• Electronic Housings

Nickel - Chromium - Cobalt Alloy

• Aerospace

• Defence

• Power Plants

• Automotive

• Aerospace Fasteners

• High Temp Discs

• High Temp Springs

• Turbine Blades

• Exhaust re-heaters

Iron - Cobalt Alloy

Soft Magnetic Alloy

• Aerospace

• Defence



• Power Stations

• Electronic Instruments

• Electric Motor Parts

• Electronic Appliances

• Sonar Applications

• Ultrasonic Equipments


Exhibit 21: Overview of application of titanium alloys

Titanium Alloy Grades Key End User Segment Application Area

Nickel Based Super Alloy

• Aerospace

• Defence

• Marine Applications

• Power Plants

• Oil & Gas

• Chemical Plants

• Pharmaceuticals

• Medical

• Processing Industry

• Aircraft Engine parts

• Aerospace exhaust system

• Chemical desalination

• Process Equipment

• Marine components

• Steam turbine blades

• Structural forgings

• Cryogenic parts





RATING RATIONALE

ICICI Direct endeavors to provide objective opinions and recommendations. ICICI Direct assigns ratings to its

stocks according to their notional target price vs. current market price and then categorizes them as Buy, Hold,

Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined

as the analysts' valuation for a stock

Buy: >15%

Hold: -5% to 15%;

Reduce: -15% to -5%;

Sell: <-15%

Pankaj Pandey Head – Research [email protected]

ICICI Direct Research Desk,

ICICI Securities Limited,

1st Floor, Akruti Trade Centre,

Road No 7, MIDC,

Andheri (East)

Mumbai – 400 093

[email protected]




RATING RATIONALE

ICICI Direct endeavors to provide objective opinions and recommendations. ICICI Direct assigns ratings to its

stocks according to their notional target price vs. current market price and then categorizes them as Buy, Hold,

Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined

as the analysts' valuation for a stock

Buy: >15%

Hold: -5% to 15%;

Reduce: -15% to -5%;

Sell: <-15%

Pankaj Pandey Head – Research [email protected]

ICICI Direct Research Desk,

ICICI Securities Limited,

1st Floor, Akruti Trade Centre,

Road No 7, MIDC,

Andheri (East)

Mumbai – 400 093

[email protected]

ANALYST CERTIFICATION

I/We, Dewang Sanghavi MBA (Finance) Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s)

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Documents

, 2020 S tock TALES - ICICI Directcontent.icicidirect.com/...StockTales_Apr20.pdf · ICICI Direct ResearchStock Tales Company Background | Mishra Dhatu Nigam Mishra Dhatu Nigam (Midhani)