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7/28/2019 HCL Tech - Q2FY12 Results Update_Jaypee Capital
1/16
7/28/2019 HCL Tech - Q2FY12 Results Update_Jaypee Capital
2/16
HCLTechnologiesLimited17January2012
Jaypee Research De
www.jaypeeindia.co
www.jaypeeusa.com
Service offerings:
Research & Advisory Execution Corporate Access & Events
Revenue growth has been flat this
quarter in $ terms however `depreciation has increased
profitability
Revenuehasbeenonconsistentrisesincepastsixquarters:
[Source:Company,JaypeeResearch]
$737.6
$803.8
$864.1 $914.5
$962.9$1,002.2$1,021.97.6%
9.0%7.5%
5.8%5.3%
4.1%
2.0%
0%
2%
4%
6%
8%
10%
$500
$600
$700
$800
$900
$1,000
$1,100
Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12
QoQ
growth
Revenue($mn)
$ Revenue
Revenue QoQ Gr.
34,254
37,08138,884
41,38242,995
11%
8%
5%
6%
4%
8%
13%
0%
2%
4%
6%
8%
10%
12%
14%
20,000
24,000
28,000
32,000
36,000
40,000
44,000
Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12
QoQgrowth
Re
venue(
mn)
` Revenue
Revenue QoQ Gr.
7/28/2019 HCL Tech - Q2FY12 Results Update_Jaypee Capital
3/16
HCLTechnologiesLimited17January2012
Jaypee Research De
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Service offerings:
Research & Advisory Execution Corporate Access & Events
Net Profit has however shown a
growth of 15%QoQprimarily due to
rupeedepreciation
Healthcare&
Life
sciences
vertical
has
shownthestrongestgrowthof100bps
QoQ, also, verticals like BFSI,
Manufacturing & Retail showed
marginalgrowth..
NetProfitgrowthhasbeenvolatile:
[Source:Company,JaypeeResearch]OverallBusinessThetableillustratesrevenuebyindustryverticals:
[Source:Company,JaypeeResearch]
3,418 3,311
3,9974,682
5,106 4,975
5,731
1%
3%
21%17%
9%
3%
15%
5%
0%
5%
10%
15%
20%
25%
100
1,100
2,100
3,100
4,100
5,100
6,100
Q4FY10Q1FY11Q2FY11Q3FY11Q4FY11Q1FY12Q2FY12
NetProfitGrowth
NetProfit(
mn)
` NetProfit
NetProfit QoQ Gr.
%Revenuebyindustryvertical Q2FY12 Q1FY12 Q2FY11 QoQ (bps) YoY(bps)
Financial
Services 25% 25.1% 24.7% 20 60
Manufacturing 30% 29.0% 27.1% 50 240
Telecom 8% 8.5% 10.3% 50 230
Retail&CPG 9% 8.5% 8.7% 30 10
MediaPublishing&Entertainment 6% 6.8% 6.6% 40 20
Healthcare&LifeSciences 9% 7.6% 8.0% 100 60
EnergyUtilitiesPublicSector 6% 8.0% 7.3% 160 90
Others 7% 6.6% 5.6% 30 130
Revenuebyindustryvertical(Rsmn) Q2FY12 Q1FY12 Q2FY11 QoQ YoY
FinancialServices 13,271 11675 9604.5 14% 38%
Manufacturing 15,474 13489 10537.7 15% 47%
Telecom 4,196 3954 4199.5 6% 0%
Retail&CPG 4,616 3954 3577.4 17% 29%
Media
Publishing
&
Entertainment 3,357
3163 2644.1 6% 27%
Healthcare&LifeSciences 4,511 3535 3266.3 28% 38%
EnergyUtilitiesPublicSector 3,357 3721 2799.7 10% 20%
Others 3,619 3070 2255.3 18% 60%
7/28/2019 HCL Tech - Q2FY12 Results Update_Jaypee Capital
4/16
HCLTechnologiesLimited17January2012
Jaypee Research De
www.jaypeeindia.co
www.jaypeeusa.com
Service offerings:
Research & Advisory Execution Corporate Access & Events
InfraManagementservicewitnessed
degrowththisquarter.HoweverCAS
showedagrowthof100bps,while
otherservicelinesshowedmarginal
improvement.
USremains
the
key
geography,
though
Emerging Markets (ROW) was the
fastest growing it has shown a de
growthof310bps.
Maximum growth is witnessed in manufacturing and healthcare and utilities
verticals.
Thefollowingtableillustratesrevenuebyserviceofferings:
[Source:Company,JaypeeResearch]Thecompany iswitnessingmaximumgrowth inEASandcustomapplications
whichareofADMinnature.BPOkeepsshrinking,thoughitisstabilizing.
Thefollowingtableillustratesrevenuebyvariousgeographies:
[Source:Company,JaypeeResearch]
%RevenuebyServiceOffering Q2FY12 Q1FY12 Q2 FY1 1 QoQ (bps) YoY(bps)
Enterpriseapplicationsservices 20% 19.8% 21.3% 50 100
EngineeringandR&Dservices 19% 18.6% 18.5% 30 40
Customapplications(industrysolutions) 33% 32.4% 31.8% 40 100
InfrastructureManagementservices 23% 24.6% 22.8% 120 60
BPOservices 5% 4.6% 5.6% 10 110
RevenuebyServiceOffering(Rsmn) Q2FY12 Q1FY12 Q2FY11 QoQ YoY
Enterpriseapplicationsservices 10648 9209 8282 16% 29%
EngineeringandR&Dservices 9914 8651 7194 15% 38%
Customapplications(industrysolutions) 17205 15070 12365 14% 39%
InfrastructureManagement
services 12274 11442 8866 7% 38%
BPOservices 2360 2140 2178 10% 8%
%Revenuebygeography Q2FY12 Q1FY12 Q2FY11 QoQ(bps) YoY(bps) Americas 59% 55.8% 57.1% 300 170
Europe 27% 26.6% 26.6% 20 20
RestoftheWorld 14% 17.5% 16.3% 310 190
Revenuebygeography Q2FY12 Q1FY12 Q2FY11 QoQ YoY Americas 30843 25954 22203 19% 39%
Europe 14058 12372 10343 14% 36%
RestoftheWorld 7553 8140 6338 7% 19%
7/28/2019 HCL Tech - Q2FY12 Results Update_Jaypee Capital
5/16
HCLTechnologiesLimited17January2012
Jaypee Research De
www.jaypeeindia.co
www.jaypeeusa.com
Service offerings:
Research & Advisory Execution Corporate Access & Events
Softwareserviceshavegrownby19%
YoY
Infrastructure Management has
grownby21%YoY
BusinessAnalysisSoftwareServices
[Source:Company,JaypeeResearch]Software Services business, which contributes 72% to the topline, keeps on
growing,especially inpastfourquarters,whereYoYgrowthhasbeengrowing
everyquarter.Q2FY12sawsoftwareservicesgrowby19%YoYand4%QoQ.
InfraServices
[Source:Company,JaypeeResearch]
$526.8
$575.7
$617.7$650.9
$679.0$709.4
$736.4
9%
9% 7%5% 4%
4% 4%
19%
28%
34%
35%
29%23%
19%
0%
5%
10%
15%
20%
25%
30%
35%
40%
$400
$450
$500
$550
$600
$650
$700
$750
$800
Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12SoftwareServicesRevenue($mn)
SoftwareServicesRevenue
Revenue QoQ Gr. YoYGr.
$165.3$180.0
$196.9$213.7
$236.2 $246.3 $239.1
9% 9% 9% 9%11%
4%
3%
54%47%
49%
41%43% 37%
21%
10%
0%
10%
20%
30%
40%
50%
60%
$0
$50
$100
$150
$200
$250
$300
Q4
FY10
Q1
FY11
Q2
FY11
Q3
FY11
Q4
FY11
Q1
FY12
Q2
FY12
RevenueGrowth
Infr
aServicesRevenue($mn)
InfraServicesRevenue
Revenue QoQ Gr. YoYGr.
7/28/2019 HCL Tech - Q2FY12 Results Update_Jaypee Capital
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HCLTechnologiesLimited17January2012
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Service offerings:
Research & Advisory Execution Corporate Access & Events
BPOisstilllaggingandhasdeclinedby
6%thisquarteronaYoYbasis
Infra Management service line has shown a degrowth this quarter primarily
duetorupeedepreciationwhichaffectedcontractssignedinIndia
BPOServices
[Source:Company,JaypeeResearch]The BPO business keeps on lagging. The company maintains that the
investmentswhich it isdoing in theBPObusinesswillstartshowing resultby
quarterending
March
12.
$45.5
$48.1
$49.5 $49.8$47.7
$46.5 $46.4
22%
18 %
14%
4%
5%
3%
6%
25%
20%
15%
10%
5%
0%
5%
10%
$0
$10
$20
$30
$40
$50
$60
Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12
BPOServicesRevenue($mn)
BPORevenue
Revenue QoQ Gr. YoYGr.
7/28/2019 HCL Tech - Q2FY12 Results Update_Jaypee Capital
7/16
HCLTechnologiesLimited17January2012
Jaypee Research De
www.jaypeeindia.co
www.jaypeeusa.com
Service offerings:
Research & Advisory Execution Corporate Access & Events
As seen in the charts, contribution of
Infra
Management
to
revenuealthough consistently increasing has
shown a decline this quarter, while
BPO is dropping. Similar trend is
witnessed in contribution to EBITDA
and EBIT, where BPO contribution is
negative,asitsmarginsarenegative.
Letsanalyzerevenueandprofitcontributionofvariousbusinesses:
71% 72 % 71% 71 % 71% 71 % 72 %
22% 22 % 23% 23 % 25% 25 % 23%
6% 6% 6% 5% 5% 5% 5%
0%
20%
40%
60%
80%
100%
Q4 FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12Revenuebybusinesssegments
RevenueContribution
Software Se rv. InfraServ. BPO
81 % 79% 76% 75% 74% 74% 76 %
23 % 24 % 25 % 26 % 26 % 26 % 24 %
4% 3% 2% 1% 1% 0% 1%
20 %
0%
20 %
40 %
60 %
80 %
100%
Q4 FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12EBITDAb
ybusinesssegments
EBITDAContribution
SoftwareSe rv. Infr aServ. BPO
7/28/2019 HCL Tech - Q2FY12 Results Update_Jaypee Capital
8/16
HCLTechnologiesLimited17January2012
Jaypee Research De
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www.jaypeeusa.com
Service offerings:
Research & Advisory Execution Corporate Access & Events
Margins have expanded in rupee
termsinQ2FY12
[Source:Company,JaypeeResearch]Software services is the most stable business,anda cashcow, whereas Infra
Managementwhichwaswitnessinggrowthhasshowndegrowththisquarter.
MarginsThefollowingchartillustratesconsolidatedmargins:
[Source:Company,JaypeeResearch]Margins have all expanded by approximately 150bps however PAT margins
haveincreasedmarginallyduetoforexloss.
84% 82% 79% 78% 77% 76% 79%
22% 25% 25% 25% 26% 26%24%
6% 7% 5% 3% 3% 2% 2%
20%
0%
20%
40%
60%
80%
100%
Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12
EBITbybusinesssegments
EBITContribution
SoftwareSe rv. Infr aServ. BPO
18.6%
16.3% 16.3%17.3%
18.5% 17.1% 18.5%
15.3%
12.9% 13.1%
14.4%15.5%
14.3%15.8%
10.0% 8.9%10.3%
11.3% 11.9%10.7%
10.9%
0%
5%
10%
15%
20%
Q4 FY10 Q 1FY11 Q 2FY11 Q 3FY11 Q 4FY11 Q 1FY12 Q2FY12
Margins
Margins
EBITDAMargin EBIT
Margin Net
Margin
7/28/2019 HCL Tech - Q2FY12 Results Update_Jaypee Capital
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HCLTechnologiesLimited17January2012
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Service offerings:
Research & Advisory Execution Corporate Access & Events
Margins of all businesses other than
BPObusinesshave shownamarginal
increase
[Source:Company,JaypeeResearch]
[Source:Company,JaypeeResearch]
15%
10%
5%
0%
5%
10%
15%
20%
25%
Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12EBITDAmargins
EBITDAMarginsofbusinesses
ConsolidatedIT Software
Serv. Infra
Serv. #REF! BPO
20 %
15 %
10 %
5%
0%
5%
10 %
15 %
20 %
Q4FY10 Q 1FY11 Q 2FY11 Q 3FY11 Q 4FY11 Q 1FY12 Q 2FY12EBITma
rgins
EBITMargins
ConsolidatedIT SoftwareServ. InfraServ. BPO
7/28/2019 HCL Tech - Q2FY12 Results Update_Jaypee Capital
10/16
HCLTechnologiesLimited17January2012
Jaypee Research De
www.jaypeeindia.co
www.jaypeeusa.com
Service offerings:
Research & Advisory Execution Corporate Access & Events
Number
ofclients
is
consistently
improving.
ClientDetailsThe
following
table
illustrates
client
matrix:
[Source:Company,JaypeeResearch]Letsanalyzecontributionbytopclients:
[Source:Company,JaypeeResearch]Revenuecontributionbytop10clientsis60%whiletherevenuesfromthetop
mostclienthasremainedflatonQoQbasis.Top5andTop10clientsaredriving
growthduetocrosssellandupsellstrategiesemployedbythecompany.
ClientMetrics Q2FY12 Q1FY12 Q2FY11
ActiveClientRelationships 516 480 434
NewClientRelationships 57 66 46
$100mn+clients 3 1 1
$50mn+clients 9 9 7
$40mn+clients 12 11 9
$30mn+clients 23 23 16
$20mn+clients 42 37 28
$10mn+clients 84 79 67
$5mn+
clients 144 135 113
$1mn+clients 362 349 312
Top5clients 16% 15.3% 16.8%
Top10clients 24% 24.1% 25.6%
Top20clients 34% 34.2% 36.6%
Repeatbusiness(consolidated) 94% 94.9% 94.3%
Clientsaccountingfor>5%oftherevenue 1 1 1
Dayssalesoutstanding(DSO) 55 53 61
%Contribution Q2FY12 Q1FY12 Q2FY11 QoQ(bps) YoY(bps) Top5clients 0.158 15.3% 16.8% 50 100
Top10clients 0.242 24.1% 25.6% 10 140
Top20clients 0.339 34.2% 36.6% 30 270
Rev.Contribution Q2FY12 Q1FY12 Q2FY11 QoQ YoY Top5clients 8287.7521 7116.4 6532.596 16% 27%
Top10clients 12693.899 11209.4 9954.432 13% 28%
Top20clients 17781.949 15907.1 14231.73 12% 25%
7/28/2019 HCL Tech - Q2FY12 Results Update_Jaypee Capital
11/16
HCLTechnologiesLimited17January2012
Jaypee Research De
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www.jaypeeusa.com
Service offerings:
Research & Advisory Execution Corporate Access & Events
We have a targetprice of `547 andmaintainourratingtoBUY.
EmployeeDetailsThe
company
had
the
headcount
of
56,624
in
software
services,
17,431
in
infra
servicesand11,021employees inBPOservicesbyendofQ2FY12.Grosshiring
figurewas7,804whilenethiring2,556forthequarter.
Utilizationremainedflatat69.6%,whileattritionreducedsignificantly.Attrition
inconsolidatedITserviceswasdownfrom15.9%inpreviousquarterto15.7%
whilethatinBPOwasalsodownfrom8.5%inpreviousquarterto6.1%.
Utilization remained relatively flat. However, attrition has reduced. Going
forwardweexpectutilizationandattritionbothtoremainflat.
ValuationWehavebuiltinthetaxrateof25%fromApril12,andhaveassumedtheUSD
`rateof49.5goingforward.
AtCMPof`425.4,thecompanyistradingat12.6xitsFY12Eearnings.Wevalue
HCLTechat14xitsFY13EEPSof`39.07toarriveatrevisedJune12targetprice
of`547.
WemaintainourBUYratingonthestock.
Ourinvestmenttheseshingesonfollowingarguments:
a) Thecompanyfeelsconfidentthatitcannotonlymaintaintheongoing
growthrate,butcanalsopreserve itsmargins.Itexudesconfidenceo
thecompanytoelevateitsmargins,whichcanhappenduetopresence
ofmarginleverslikelowutilization(thecompanyistryingtoreachthe
levelof75%frompresent70%levels),highSG&A(whichpresentlyisin
excessof15%ofSales),andhighinvestmentincapex/infrastructure.
b) The company is already paying tax @25%, and the incremental tax
whichtheyhave topay fromApril 12,whenSTPIbenefitends, isnot
much.Wehavebuilt25%taxrate.
7/28/2019 HCL Tech - Q2FY12 Results Update_Jaypee Capital
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HCLTechnologiesLimited17January2012
Jaypee Research De
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Service offerings:
Research & Advisory Execution Corporate Access & Events
ConsolidatedFinancials HCLTech
IncomeStatement BalanceSheet
Y/EJune(`mn) FY10 FY11 FY12E FY13E Y/EJune(` mn) FY10 FY11 FY12E FY13E
Revenue 125,650 160,342 210,420 243,144 Cashandcashequivalents 4,686 5,198 11,961 33,017
YoYGrowth 18.6% 27.6% 31.2% 15.6% AccountsReceivables 30,496 25,907 36,714 39,198DirectCost 81,957 109,140 142,484 163,457 Bankdeposits 11,913 10,785 10,041 10,041
SG&AExpenses 17,965 23,714 29,903 36,472 Investmentsecurities 7,820 6,426 108 108
EBITDA 25,728 27,488 38,033 43,216 OtherCurrentAssets 8,845 20,704 27,739 31,582
EBITDAMargin 20.5% 17.1% 18.1% 17.8% CurrentAssets 63,760 69,020 86,563 113,947Depreciation&amortization 5,009 4,974 5,288 5,796 PPE,net 18,486 22,165 26,119 28,323
EBIT(OperatingProfit) 20,719 22,514 32,745 37,420 Intangibleassets 43,122 41,878 47,521 47,521
EBITMargin 16.5% 14.0% 15.6% 15.4% Investments(longterm) 707 2,780 2,878 2,878Gain/(loss)fromforexhedging (4,757) (818) (1,437) (1,000) Othernoncurrentassets 9,640 10,392 11,607 11,607
Othernonoperatinginc./(exp.) (545) 257 326 NonCurrentAssets 71,955 77,215 88,125 90,329
PBT 15,417 21,953 31,634 36,420 TotalAssets 135,715 146,235 174,687 204,275
IncomeTaxes 2,404 4,854 7,971 9,105 CurrentLiabilities 31,329 33,763 40,397 43,574
Effectivetaxrate 15.6% 22.1% 25.2% 25.0% Longtermdebt 26,632 21,240 20,905 20,905MinorityInterest 12.0 1.0 3.0 0.0 Otherliabilities 7,386 6,887 9,163 10,433
Netincome 13,025 17,100 23,666 27,315 TotalLiabilities 65,347 61,890 70,466 74,912
YoYGrowth 2.0% 31.3% 38.4% 15.4% MinorityInterest Sharesoutstanding(mn) 689.5 696.4 699.2 699.2 Stockholders'equity 70,368 84,345 104,221 129,363
EPS(Rs)(FullyDiluted) 18.89 24.55 33.85 39.07 Totalliabilities&equity 135,715 146,235 174,687 204,275
DPS(Rs) 4.50 7.40 15.04 15.63 BVPS(Rs) 102.1 121.1 149.1 185.0
Cashflow FinancialRatios
Y/EJune(`mn) FY10 FY11 FY12E FY13E Y/EJune FY10 FY11 FY12E FY13ENetIncome 13,025 17,100 23,666 27,315 Profitability&Returnratios(%)
Depreciation&Amortization 3,894 4,974 5,040 5,796 Grossmargin 35% 32% 32% 33%
Changesinworkingcapital 1,380 (2,362) 2,917 2,453 EBITDAmargin 20% 17% 18% 18%
Otheroperatingcashflow (1,691) (357) 1,861 Netmargin 10% 11% 11% 11%
CashflowfromOperations 16,608 19,355 33,484 35,564 ROE 19% 20% 23% 21%
Capitalexpenditure (6,122) (7,782) (7,639) (8,000) ROA 10% 12% 14% 13%
(Inc.)/Dec.ininvestments (5,936) (43) 1,844 ROCE 13% 16% 19% 18%
Otherinvestingcashflow WorkingCapital&Liquidityratios
CashflowfromInvesting (12,059) (7,824) (5,795) (8,000) Receivables(days) 84 64 54 57
Issueofequity 1,035 581 206 Currentratio(x) 2.0 2.0 2.1 2.6
Issue/(repay)debt (3,302) (4,494) (877) Cashratio(x) 0.1 0.2 0.3 0.8
Dividendspaid+div.tax (3,099) (5,153) (10,518) (10,926) Turnover&Leverageratios(x)
Otherfinancing
cash
flow (180)
(63)
(23)
Gross
fixed
asset
turnover
1.8
2.1
2.5
2.7
CashflowfromFinancing (5,546) (9,130) (11,212) (10,926) DebttoEquityratio 0.4 0.3 0.2 0.2
Forextranslationeffect 404 568 (2,468) Valuationratios(x)
NetChangeincash&casheq (592) 2,970 14,009 16,638 EV/Sales 2.2 1.7 1.3 1.1
Beginningcash&casheq 2,042 1,450 4,420 18,429 EV/EBITDA 10.5 9.9 7.1 6.3
Closingcash&casheq 1,450 4,420 18,429 35,067 P/E 22.5 17.3 12.6 10.9
P/BV 4.2 3.5 2.9 2.3
[Source:Company,JaypeeResearchEstimates]
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Service Offerings:
Research & Advisory Execution Corporate Access & Events
FromJaypeeInstitutionalEquitiesDeskEquityResearchProducts
1. InitiatingCoverage Indepthanalysiscoupledwithdetailedexplanationofinvestmentrationale2. IPONote IndepthanalysisofanIPOwitharecommendationforthesame
3. ResultPreview Predictionofresultstobeannouncedwithaviewonmarginsforthestock4. ResultReview Analysisoftheresultsandviewonthestockaftertheresults5. EventUpdate Analysisofstock/sectorspecificeventwhichhasoccurredanditsimpact6. EconomicUpdate AnalysisofIIP,GDP,Inflationandsixcoreindustries7. CommodityOutlook Futureoutlookonbullion,basemetalsandenergyproducts
DerivativesResearchProducts1. PairTrades Identificationofstockpairsbasedoncointegrationandcorrelation2. NIFTYStrategies Strategiesbasedonmarketviewe.g.,straddle,skew,condoretc3. ArbitrageTrades CashFutureandSpecialSituationArbitrage4. NumeroMania MonthlyrepositoryoftradingstrategiesfromtheDerivativesDesk
DailyReports1. MorningGlance DailyupdateofglobalnewsbeforetheIndianmarketsopen2. PostMarketUpdate Dailymarketactionandkeystatisticsinanutshell3. CurrencyUpdate Analysisofthedomesticcurrencymarketwithanoutlookfortheday4. CommodityUpdate Snapshotofthecommoditymarketwithanoutlookfortheday5. DerivativesDaily DailyupdateoftheactivitiesintheDerivativessegment6. DerivativesWeekly Weeklyupdateoftheactivitiesinthe Derivativessegment7. RolloverAnalysis Dailyanalysisoftherollsduringtheexpiryweekeverymonth
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Service Offerings:
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Disclaimer:
Thisdocument
does
not
constitute
an
offer
or
solicitation
for
the
purchase
or
sale
of
any
financial
instrument
or
as
an
officialconfirmationofanytransaction.Thisdocumentissubjecttochangeswithoutpriornoticeandisintendedonlyfor
thepersonorentitytowhichitisaddressedandmaycontainconfidentialand/orprivilegedmaterialand isnotforany
typeofcirculation.Anyreview,retransmission,oranyotheruseisprohibited.
Theinformationcontainedhereinisfrompubliclyavailabledataorothersourcesbelievedtobereliable.Whilewewould
endeavor to update the information herein on reasonable basis,Jaypee Capital Services Limited, its subsidiaries and
associatedcompanies,theirdirectorsandemployeesareundernoobligationtoupdateorkeeptheinformationcurrent
Also, there may be regulatory, compliance, or other reasons that maypreventJaypee Capital Services Limited and
affiliatesfrom
doing
so.
We
do
not
represent
that
information
contained
herein
is
accurate
or
complete
and
it
should
no
berelieduponassuch.Thisdocument ispreparedforassistanceonlyand isnot intendedtobeandmustnotalonebe
takenasthebasisforaninvestmentdecision.Theuserassumestheentireriskofanyusemadeofthisinformation.Each
recipientofthisdocumentshouldmakesuchinvestigationsasitdeemsnecessarytoarriveatanindependentevaluation
ofaninvestmentinthesecuritiesofcompaniesreferredtointhisdocument(includingthemeritsandrisksinvolved).
Theinvestmentdiscussedorviewsexpressedmaynotbesuitableforallinvestors.Itdoesnothaveregardtothespecific
investment objectives,financial situation and theparticular needs of any specific Person/ Institutions etc.who may
receivethisreport.Investorsshouldseekfinancialadviceregardingtheappropriatenessofinvestinginanysecuritiesor
investmentstrategiesdiscussedorrecommendedinthisreportandshouldunderstandthatstatementsregardingfuture
prospectsmay
not
be
realized
and
there
is
substantial
risk
of
loss.
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Capital
Services
Limited
does
not
take
responsibilitythereof.Thisisfurtherclarifiedthatnokindofnegligence,misconductordefaultwhatsoeveronthepartof
JaypeeCapitalServicesLimitedcanbeattributed byanypersononthebasisof thisresearchpublicationoranypar
thereof.
Reports based on technical analysis centers on studying charts of a stock'spricemovement and trading volume, as
opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.AffiliatesofJaypeeCapitalServicesLimitedmayhaveissuedotherreportsthatareinconsistentwithand
reachdifferentconclusionsfrom,theinformationpresentedinthisreport.
Thisreportisnotdirectedorintendedfordistributionto,oruseby,anypersonorentitywhoisacitizenorresidentofor
locatedinanylocality,state,countryorotherjurisdiction,wheresuchdistribution,publication,availabilityorusewould
becontrarytolaw,regulationorwhichwouldsubjectJaypeeCapitalServicesLimitedandaffiliatestoanyregistrationor
licensingrequirementwithinsuchjurisdiction.Thesecuritiesdescribedhereinmayormaynotbeeligibleforsale inal
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jurisdictionsortoacertaincategoryofinvestors.Personsinwhosepossessionthisdocumentmaycomearerequiredto
inform themselves of, and to observe, such applicable restrictions. Though disseminated to all the customers
simultaneously,
not
all
customers
may
receive
this
report
at
the
same
time.
Jaypee
Capital
Services
Limited
will
not
trearecipientsascustomersbyvirtueoftheirreceivingthisreport.
Weandouraffiliates,officers,directors,andemployeeswillfrom time to timehave longorshortpositions in,actas
principalin,andbuyorsell,thesecuritiesorderivatives,ifany,referredtointhisresearch.
Oursalespeople,traders,andotherprofessionalsmayprovideoralorwrittenmarketcommentaryortradingstrategies
toourclientsandourproprietarytradingdesksthatreflectopinionsthatarecontrarytotheopinionsexpressed inthis
research.Ourassetmanagementarea,ourproprietary tradingdesksand investingbusinessesmaymake investmen
decisionsthatareinconsistentwiththerecommendationsorviewsexpressedinthisresearch.
Ourresearchpersonnelmayparticipateincompanyeventssuchassitevisitsandaregenerallyprohibitedfromaccepting
paymentbythecompanyofassociatedexpensesunlesspreapprovedbyauthorizedmembersofResearchManagement.
Trading insecurities,futures,optionsorotherfinancialinstrumentsentailssignificantriskandisnotappropriateforal
investors. Electronic trading also entails significant risk. Losses may exceed the principal invested, and the pas
performanceofasecurity,industry,sector,market,orfinancialproductdoesnotguaranteefutureresultsorreturns.
Jaypee refers toallofJaypeesworldwidebranchesandsubsidiaries.Jaypee International Inc. isamemberofBATS,
CBOT,
CME,
COMEX,
ECX,
EUREX,
ICE,
LME,
NASDAQ,
NYSE
LIFFE,
SGX,
TOCOM.
Jaypee
International
Inc.
is
also
amemberofFINRA,NFAandSIPCandisregulatedbySECandCFTCinUSA.JaypeeCapitalServicesLimitedisamemberof
USE,NSEandBSEand isregulatedbySEBI inIndia.IndianservicesareofferedthroughJaypeeCapitalServicesLimited
NotallservicesareavailablefromallJaypeeorganizationsorpersonnel.Kindlyconsultyourlocalofficefordetails.
RecommendationStructure:ABuyrecommendationimpliesanupsideof10%ormorefromthecurrentlevels.
ASellrecommendationimpliesadownsideof10%ormorefromthecurrentlevels.
ANeutralrecommendationimpliesanupside/downsideoflessthan10%fromthecurrentlevels.
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