Aban Offshore (ABALLO) 180

(1)

February 3, 2016

Result Update

Bleak outlook ahead…

• Aban Offshore reported a 25.9% QoQ decline in revenue to | 733.6

crore, below our estimate of | 872.8 crore. The average revenue per

rig per day declined 25.9%QoQ to | 44.3 lakh in Q3FY16, below our

estimate of | 52.7 lakh

• EBITDA at | 368 crore (declined 38.5%QoQ) came in below our

estimate of | 478.8 crore while the EBITDA margin at 50.2%

(contracted 1029 bps) also came in below our estimate of 54.9%

• The company reported a loss of | 86.2 crore that came in below our

profit estimate of | 53.4 crore. Higher-than-expected interest cost

(increased 4.7% QoQ) and lower other income QoQ also contributed

to the reported loss

Continued low crude price environment to weigh on rigs contract renewal

Low global crude oil prices have led to increased concerns over the lower

utilisation of rigs currently under marketing and that are due for renewals

in the near term horizon. During the current quarter, the contract ended

for DD3, DD6 and DD8, whereas, DD2, DD5, DD7, Aban 5 and Tahara

remained unutilised. Aban’s management was able to renegotiate

contract for DD2, DD4, Aban 2 and Aban 7 rigs but at a considerable

discount to the earlier contract day rates. On a positive note, the lifting of

economic sanctions against Iran on January 16, 2016 by the UN, EU and

partially by the US, has renewed hopes of swifter renegotiated contracts

for Aban’s DD6, Aban 6 (contract ends on February 2016) and Aban 8,

which are currently deployed in Iran, along with the recently contracted

DD2 and DD4, which provided some respite to the company. However,

renewal of unutilised assets will be very crucial for the profitability of the

company, going forward.

Renewal of loans /managing interest costs to be key

Aban has initiated discussion with its bondholders and recently gained

approval to extend the bond tenor of $87.5 million guaranteed by DD1 Pte

Ltd maturing in December 2015. It has been extended by two years in an

amortised repayment way, at ~$8 million per quarter that the company

proposes to pay from the cash generated by DD1. The capacity utilisation

of the rigs would be the key for future cash flows and will determine the

interest payments for the company, going forward. Renewal of loans at

lower costs in future will be crucial for the company next year.

Stark challenges remain in managing business

Although Iran post-sanction prospects offers improved cash flows to

Aban Offshore in the short term, its lower capacity utilisation of rigs (eight

under marketing and two up for renewal in the near term) and

renegotiation of rigs at lower day rates vs. earlier contractual prices,

would remain key challenges for the company. Servicing interest costs in

the current grim scenario of low crude prices will be important in the next

year or two. We have assumed lower than earlier renewal day rates and

asset utilisation for rigs for FY16E and FY17E. New contracts for assets

that are currently under marketing would be key to Aban’s operational

performance in the medium term. Lower prices and inability to renew

assets continue to remain key risks to earnings. We have a SELL

recommendation on the stock with a target price of | 145.

Aban Offshore (ABALLO)

| 180

Rating matrix

Rating : Sell Target : | 145 Target Period : 12 months Potential Upside : -19%

What’s changed?

Target Changed from | 223 to | 145 EPS FY16E Changed from | 73.1 to | 9.7 EPS FY17E Changed from | 85.9 to | 26.7 Rating Changed from Hold to Sell

Quarterly performance

Q3FY16 Q3FY15 YoY (%) Q2FY16 QoQ (%)

Revenue 733.6 1,003.2 -26.9 990.1 -25.9 EBITDA 368.0 584.6 -37.0 598.5 -38.5 EBITDA (%) 50.2 58.3 -811 bps 60.5 -1029 bps PAT -86.2 128.8 -166.9 122.2 -170.5

Key financials

| Crore FY14 FY15 FY16E FY17E

Revenues 3,936.4 4,040.8 3,363.3 3,414.8 EBITDA 2,202.0 2,378.9 1,853.1 1,944.3 Net Profit 391.2 540.6 84.6 181.3 EPS (|) 82.8 88.7 9.7 26.7

Valuation summary

FY14 FY15 FY16E FY17E

P/E 2.2 2.0 18.6 6.7 Target P/E 1.8 1.6 15.0 5.4 EV / EBITDA 7.0 6.3 8.0 7.2 P/BV 0.2 0.2 0.2 0.2 RoNW (%) 9.4 9.5 1.1 2.8 RoCE (%) 8.8 9.0 6.0 6.6 Stock data Particular Amount

Market Capitalization (| Crore) 1,039.6 Total Debt (FY15) (| Crore) 14,059.7 Cash and Investments (FY15) (| Crore) 115.4 EV (| Crore) 14,983.9

52 week H/L 519/176

Equity capital (| Crore) 11.6 Face value (|) 2.0 Price performance Return % 1M 3M 6M 12M Aban Offshore (13.7) (21.8) (39.5) (62.3) ONGC (6.2) (14.7) (24.1) (38.7) Oil India (8.0) (21.0) (21.2) (36.8) Cairn India (15.2) (26.8) (32.4) (52.7) Research Analyst Mayur Matani [email protected] Harshal Mehta [email protected]

(2)

Variance analysis

Q3FY16 Q3FY16E Q3FY15 YoY (%) Q2FY16 QoQ (%) Comments

Total Revenues 733.6 872.8 1,003.2 -26.9 990.1 -25.9

Declined due to lower utilisation of rigs as well as contract renegotiation of DD2, DD4 and Aban 7 at lower than estimated day rates

Raw materials costs 35.6 39.3 49.8 -28.5 44.0 -18.9 Employees Cost 119.0 145.2 138.3 -13.9 138.4 -14.0 Other Expenses 210.9 209.5 230.5 -8.5 209.2 0.8 Total Expenditure 365.6 394.0 418.6 -12.7 391.6 -6.6 EBITDA 368.0 478.8 584.6 -37.0 598.5 -38.5 EBITDA margins (%) 50.2 54.9 58.3 -811 bps 60.5 -1029 bps Depreciation 168.3 167.1 151.2 11.3 165.9 1.4 EBIT 199.8 311.7 433.4 -53.9 432.7 -53.8

Interest 252.5 244.4 279.9 -9.8 241.2 4.7 Increase in the libor rates led to the increased interest cost increased QoQ Other Income 3.9 9.0 13.3 -71.0 7.6 -49.2

Extra Ordinary Item 0.0 0.0 0.0 NA 0.0 NA PBT -48.9 76.3 166.8 -129.3 199.0 -124.6

Total Tax 37.3 22.9 38.0 -1.9 76.8 -51.5 Higher than estimated tax rate of 37.3% vs. 22.9% expected PAT -86.2 53.4 128.8 -166.9 122.2 -170.5

Key Metrics

Exchange Rate ($/|) 66.1 66.1 62.0 6.6 65.1 1.5 Revenue/rig/day (| lakh) 44.3 52.7 60.6 -26.9 59.8 -25.9

Declined due to lower utilisation of rigs as well as contract renegotiation of DD2, DD4 and Aban 7 at lower than estimated day rates

Source: Company, ICICIdirect.com Research

Change in estimates

(| Crore) Old New % Change Old New % Change Comments

Revenue 3,883.7 3,363.3 -13.4 4,018.9 3,414.8 -15.0 EBITDA 2,257.7 1,853.1 -17.9 2,278.5 1,944.3 -14.7

Change in estimates as the situation continues to remain uncertain on the rig utilisation front

EBITDA Margin (%) 58.1 55.1 -304 bps 56.7 56.9 25 bps

PAT 446.9 84.6 -81.1 523.1 181.3 -65.3 Decline in estimated PAT due to negative operating leverage EPS (|) 73.1 9.7 -86.8 85.9 26.7 -68.9

FY16E FY17E

Assumptions

FY14 FY15 FY16E FY17E FY16E FY17E

Exchange Rate ($/|) 63.0 63.0 65.4 67.0 64.9 65.0

Revenue/rig/day (| lakh) 59.9 61.5 58.3 60.4 58.3 60.4 Unchanged due to continued lower utilisation of fleets and lower day rates

Current Earlier

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Company Analysis

Continued low crude price environment to weigh on rig contract renewal

Low global crude oil prices have led to increased concerns over the lower

utilisation of rigs currently under marketing and that are due for renewal

in the near term horizon. During the current quarter, the contract ended

for DD3, DD6 and DD8, whereas, DD2, DD5, DD7, Aban 5 and Tahara

remained unutilised. The management was able to renegotiate contract

for DD2, DD4, Aban 2 and Aban 7 rigs but at a considerable discount to

earlier contract day rates. On a positive note, lifting of economic

sanctions against Iran on January 16, 2016 by the UN, EU and partially by

the US, has renewed hopes of swifter renegotiated contracts for Aban’s

DD6, Aban 6 (contract ends on February 2016) and Aban 8, which are

currently deployed in Iran, along with the recently contracted DD2 and

DD4, which provided some respite to the company.

However, the renewal of unutilised assets will be very crucial for the

profitability of the company, going forward. Due to the sharp decline in

crude oil prices, we assume lower renewal rates and asset utilisation for

rigs.

Exhibit 1: Topline performance trend

1027.8 1018.5 1003.2 991.4 981.5 990.1 733.6 3363.3 3414.8 4040.8 0 1000 2000 3000 4000 5000

Q1FY15 Q2FY15 Q3FY15 Q4FY15 FY15 Q1FY16 Q2FY16 Q3FY16 FY16E FY17E

| Crore

Exhibit 2: EBITDA performance trend

584.6 603.0 2378.9 586.0 598.5 368.0 1853.1 1944.3 58.3 60.8 58.9 59.7 60.5 50.2 55.1 56.9 0 500 1000 1500 2000 2500

Q3FY15 Q4FY15 FY15 Q1FY16 Q2FY16 Q3FY16 FY16E FY17E

| Crore 46.0 50.0 54.0 58.0 62.0 66.0 70.0 % EBITDA OPM

We expect EBITDA margins to stabilise at 55-57% in FY16E and FY17E

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Renewal of loans /managing interest costs to be key

Aban has initiated discussion with its bondholders and recently gained

approval to extend the bond tenor of $87.5 million guaranteed by DD1 Pte

Ltd maturing in December 2015. It has been extended by two years in an

amortised repayment way, with ~$8 million per quarter that the company

proposes to pay from cash generated by DD1. The capacity utilisation of

rigs would be the key for future cash flows and will determine the interest

payments for the company, going forward. Renewal of loans at lower

costs in future will be crucial for the company in the next year.

Exhibit 3: Trends in interest expense as percentage of EBITDA

296 287 ₂₇₅ 279 280 ₂₅₆ 233 241 253 560 632 ₆₀₂ 589 368 585 603 586 599 52.8 45.4 45.7 47.4 47.9 _42.5 39.8 40.3 68.6 0 100 200 300 400 500 600 700

Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16

| Cr ore 30 40 50 60 70 80 %

Interest EBITDA Interest exp as percentage of EBITDA

Exhibit 4: PAT performance trend

113.5 545.1 135.4 124.4 -88.7 88.7 187.3 130.0 13.0 _11.5 13.5 13.8 12.6 -12.1 2.6 5.5 -100 100 300 500 700

Q3FY15 Q4FY15 FY15 Q1FY16 Q2FY16 Q3FY16 FY16E FY17E

| Cro re -20.0 -10.0 0.0 10.0 20.0 % PAT NPM

Aban’s interest cost to EBITDA ratio has declined from 59.4% in FY13 to 45.9% in FY15

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Outlook & valuation

Although Iran post-sanctions prospects offers improved cash flows to

Aban Offshore in the short term, its lower capacity utilisation of rigs (eight

under marketing and two up for renewal in the near term) and

renegotiation of the rigs at lower day rates than earlier contractual prices,

would remain key challenges for the company. Servicing interest costs in

the current grim scenario of low crude prices will be important for the

next year or two. We have assumed lower than earlier renewal day rates

and asset utilisation for the rigs for FY16E and FY17E. New contracts for

assets which are currently under marketing would be key to Aban’s

operational performance in the medium term. Lower prices and inability

to renew assets continue to remain key risks to earnings. We have a SELL

recommendation on the stock with a target price of | 145.

Exhibit 5: Valuation

Net Worth (| crore) 5592.1

Number of Shares (crore) 5.8

Book Value Per Share (|) 968.2

Target Price to Book Multiple (x) 0.15

Target Price (|) 145

Source: ICICIdirect.com Research

Exhibit 6: Valuations Year Sales (| Crore) Sales Gr. (%) EPS (|) EPS Gr. (%) PE (x) EV/EBITDA (x) RoNW (%) RoCE (%) FY14 3,936.4 24.5 82.8 1,543.4 2.2 7.0 9.4 8.8 FY15 4,040.8 2.7 88.7 7.1 2.0 6.3 9.5 9.0 FY16E 3,363.3 (16.8) 9.7 (89.1) 18.6 8.0 1.1 6.0 FY17E 3,414.8 1.5 26.7 176.5 6.7 7.2 2.8 6.6 Source: Company, ICICIdirect.com Research

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Company snapshot Target Price: 145 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Ja n-10 Jul-10 Ja n-11 Jul-11 Ja n-12 Jul-12 Ja n-13 Jul-13 Ja n-14 Jul-14 Ja n-15 Jul-15 Ja n-16 Jul-16 Ja n-17

Source: Bloomberg, Company, ICICIdirect.com Research

Key events

Date Event

Oct-09 Hitech Drilling Services India Ltd merges with Aban Offshore

May-10 Aban Offshore's semisubmersible ship owned by one of its subsidiaries, which was engaged in contract at offshore Venezuela, sank leading to a probe by Venezuela Nov-10 Raises | 698 crore via QIPs

Mar-11 Enters into agreement with Petrolia ASA, Norway to sell its entire holding of 50% shares in Venture Drilling AS for a consideration of | 150 crore

Oct-12 Receives letter for deployment of jack-up rig Deep Driller 3 from Petronas Carigali Sdn. Bhd., for a firm period of three years. Estimated revenues from the deployment Jun-13 Aban Offshore receives letter of award (LoA) from ONGC for deployment of drillship Aban Ice for a firm period of thre years. The total value of the LOA is Jan-14 Aban Offshore receives deployment of jack-up rig Deep Driller 5 for a firm period of one year and an optional period of a year. Estimated revenues from the May-14 To consider long term funds through issue of FCCBs, ADRs, GDRs and issue of equity related securities, etc. to qualified institutional buyers

Oct-14 Secures an order from ONGC for | 1114 crore

Dec-14 Stock price declines due to sharp reduction in the crude oil prices

Oct-15 Deep Drilling 1 Pte. Ltd (DD1PL) proposes to its bondholders for extending the bond tenor of outstanding principal US$ 87.5 million, maturing in December 2015. Dec-15 Bondholders of DD1PL accept the proposal to amend bond agreement reached in 2011

Top 10 Shareholders Shareholding Pattern

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

1 India Offshore, Inc. 30-Sep-15 0.1 8.3 0.0 2 Aban Investments Pvt. Ltd. 30/Sep/15 0.1 5.7 0.0 3 Abraham (Reji) 30-Sep-15 0.1 5.6 0.0 4 Abraham (Deepa Reji) 30/Sep/15 0.1 4.0 0.0 5 Abraham (Saley) 30-Sep-15 0.0 2.2 0.0 6 ICICI Prudential Asset Management Co. Ltd. 30-Sep-15 0.0 1.5 0.0 7 Aban Ventures Pvt. Ltd. 30/Sep/15 0.0 1.0 0.0 8 Life Insurance Corporation of India 30-Sep-15 0.0 1.0 0.0 9 Dimensional Fund Advisors, L.P. 30/Nov/15 0.0 0.9 0.0 10 Mellon Capital Management Corporation 31-Dec-15 0.0 0.8 0.0

(in %) Sep-14 Dec-14 Mar-15 Jun-15 Sep-15

Promoter 45.7 45.7 46.5 47.0 47.0 FII 15.5 16.4 16.7 13.0 7.6 DII 12.3 9.9 8.8 8.9 6.3 Others 26.5 28.1 28.0 31.0 39.1

Source: Reuters, ICICIdirect.com Research

Recent Activity

Investor name Value (m) Shares (m) Investor name Value (m) Shares (m)

Metisq Capital Pty Ltd 0.26 0.06 Old Mutual Global Investors (UK) Limited -0.20 -0.06 AXA Investment Managers Asia (Singapore) Ltd. 0.01 0.00 Mellon Capital Management Corporation -0.14 -0.04

Nordea Funds Oy -0.13 -0.04

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.

Financial summary

Profit and loss statement | crore

(Year-end March) FY14 FY15 FY16E FY17E

Total operating Income 3,936.4 4,040.8 3,363.3 3,414.8 Growth (%) 7.2 2.7 -16.8 1.5 Raw materials costs 245.3 206.5 172.6 187.8 Employees Cost 495.7 567.6 517.2 500.6 Other Expenditure 993.3 887.9 820.4 782.0 Total Operating Expenditure 1734.3 1662.0 1510.2 1470.4 EBITDA 2,202.0 2,378.9 1,853.1 1,944.3 Growth (%) 10.9 8.0 -22.1 4.9 Depreciation 546.4 598.0 668.9 693.6 Interest 1140.6 1091.0 979.1 1011.8 Other Income 30.7 44.4 24.3 20.0 PBT 545.7 734.3 229.4 258.9 Total Tax 154.5 193.7 144.8 77.7 PAT 391.2 540.6 84.6 181.3 Growth (%) 104.4 38.2 -84.4 114.3 PAT (after JV share) 393.0 545.1 88.7 187.3 EPS (|) 82.8 88.7 9.7 26.7 Source: Company, ICICIdirect.com Research

Cash flow statement | crore

Profit after Tax 393.0 545.1 88.7 187.3 Add: Depreciation 546.4 598.0 668.9 693.6 (Inc)/dec in Current Assets 417.9 430.2 -599.5 -84.1 Inc/(dec) in CL and Provisions -55.6 -417.9 -430.2 599.5

Others 22.2 13.5 0.0 0.0

CF from operating activities 1,323.9 1,168.8 -272.0 1,396.2 (Inc)/dec in Investments -2.1 -4.8 0.0 0.0 (Inc)/dec in Fixed Assets -2,232.2 -1,186.0 -1,179.5 0.0 Others 752.9 279.5 22.6 0.0 CF from investing activities -1,481.4 -911.3 -1,156.9 0.0 Issue/(Buy back) of Equity 39.1 840.6 0.0 0.0 Inc/(dec) in loan funds 914.1 -501.2 -168.6 -800.0

Others 0.0 0.0 0.0 1.0

CF from financing activities 953.2 339.4 -168.6 -799.0 Net Cash flow 2.4 -25.6 -56.7 76.6 Opening Cash 138.6 141.0 115.4 58.7 Closing Cash 141.0 115.4 58.7 135.3 Source: Company, ICICIdirect.com Research

Balance sheet | crore

Source of Funds

Equity Capital 289.7 292.6 292.6 292.6 Reserve and Surplus 3,876.5 5,408.5 5,456.6 5,580.5 Total Shareholders funds 4,166.2 5,701.0 5,749.1 5,873.1 Total Debt 14,560.9 14,059.7 13,891.1 13,091.1 Deferred Tax Liability 60.9 74.4 74.4 74.4 Long term provisions 3.6 1.8 1.8 1.8 Total Liabilities 18,791.6 19,837.0 19,716.4 19,040.4 Assets

Gross Block 22,404.5 23,590.5 24,770.0 24,770.0 Less: Acc Depreciation 4,538.7 5,227.5 5,896.4 6,590.0 Net Block 17,865.8 18,363.0 18,873.6 18,180.0 Capital WIP 0.0 18.7 18.7 18.7 Total Fixed Assets 17,865.8 18,381.7 18,892.3 18,198.7 Investments 8.3 13.1 13.1 13.1 Inventory 379.0 378.7 322.5 308.7 Debtors 1,279.6 1,594.1 1,382.2 1,309.8 Loans and Advances 178.3 152.4 138.2 140.3 Other Current Assets 195.3 337.3 20.0 20.0 Cash 141.0 115.4 58.7 135.3 Total Current Assets 2,173.2 2,577.8 1,921.7 1,914.2 Current Liabilities 1,147.5 1,077.7 1,002.7 927.7 Provisions 108.3 57.9 107.9 157.9 Total CL and Provisions 1,255.8 1,135.6 1,110.6 1,085.6 Net Working Capital 917.4 1,442.2 811.1 828.6 Miscellaneous expense 0.0 0.0 0.0 0.0 Application of Funds 18,791.6 19,837.0 19,716.4 19,040.4 Source: Company, ICICIdirect.com Research

Key ratios

Per share data (|)

EPS 82.8 88.7 9.7 26.7

Cash EPS 215.5 197.1 130.5 151.5

BV 893.0 938.5 946.8 968.2

DPS 3.6 4.0 4.5 4.5

Cash Per Share 70.5 57.7 19.6 45.1 Operating Ratios (%)

EBITDA Margin 55.9 58.9 55.1 56.9 PBT / Total Operating income 13.9 18.2 6.8 7.6 PAT Margin 10.0 13.5 2.6 5.5 Inventory days 45.0 45.0 35.0 33.0 Debtor days 118.7 144.0 150.0 140.0 Creditor days 106.4 97.4 108.8 99.2 Return Ratios (%) RoE 9.4 9.5 1.1 2.8 RoCE 8.8 9.0 6.0 6.6 RoIC 2.1 2.8 0.5 1.0 Valuation Ratios (x) P/E 2.2 2.0 18.6 6.7 EV / EBITDA 7.0 6.3 8.0 7.2 EV / Net Sales 3.9 3.7 4.4 4.1 Market Cap / Sales 0.3 0.3 0.3 0.3 Price to Book Value 0.3 0.2 0.2 0.2 Solvency Ratios

Debt/EBITDA 6.6 5.9 7.5 6.7 Debt / Equity 3.5 2.5 2.4 2.2 Current Ratio 1.7 2.3 1.7 1.8 Quick Ratio 1.3 1.6 1.4 1.5 Source: Company, ICICIdirect.com Research

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ICICIdirect.com coverage universe (Oil & Gas)

CMP M Cap

(|) TP(|) Rating (| Cr) FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E Aban Offshore (ABALLO) 180 145 Sell 1,040 88.7 9.7 26.7 2.0 18.6 6.7 6.3 8.0 7.2 9.0 6.0 6.6 9.5 1.1 2.8 Cairn India (CAIIND) 121 128 Hold 22,950 23.9 8.0 6.4 5.1 15.1 18.9 2.6 6.7 7.5 10.1 -0.2 0.2 7.6 2.5 2.0 GAIL (India) (GAIL) 363 355 Buy 46,046 24.0 13.0 18.6 15.2 27.9 19.5 11.6 15.1 11.7 9.6 6.0 8.0 10.4 5.5 7.5 Gujarat Gas (GUJGAS) 550 520 Hold 7,572 32.2 16.3 33.5 17.1 33.8 16.4 9.6 13.0 8.9 16.6 10.8 17.1 22.3 10.5 18.3 Gulf Oil Lubricants (GULO) 531 519 Hold 2,632 15.6 18.9 20.9 34.0 28.1 25.5 20.6 17.3 16.0 30.9 33.5 33.1 41.4 38.6 34.1 Hindustan Petroleum (HINPET) 807 820 Hold 27,358 80.6 67.7 74.5 10.0 11.9 10.8 8.4 8.4 7.0 10.2 7.9 9.4 17.1 13.3 13.4 Indian Oil Corporation (INDOIL) 402 405 Hold 97,604 21.7 34.9 33.4 18.5 11.5 12.1 9.6 5.6 5.3 4.6 9.7 9.3 7.8 11.5 10.2 Indraprastha Gas (INDGAS) 563 547 Buy 7,882 31.3 31.4 36.0 18.0 18.0 15.6 9.8 9.2 8.0 28.7 26.7 25.5 20.9 18.1 17.9 Mangalore Refinery (MRPL) 65 61 Buy 11,392 -9.8 -1.4 7.5 -6.7 -45.4 8.6 -4.9 30.1 6.1 -17.9 0.3 16.8 -32.3 -5.2 22.5 Oil India Limited (OILIND) 352 430 Buy 21,160 41.7 43.1 39.7 8.4 8.2 8.9 5.1 4.3 4.2 9.4 10.1 9.4 11.7 11.4 10.1 ONGC (ONGC) 218 250 Hold 186,511 21.4 19.4 22.2 10.2 11.2 9.8 3.9 4.4 4.1 10.5 9.5 10.3 9.8 8.9 9.9 Petronet LNG (PETLNG) 255 225 Buy 19,125 11.8 13.1 15.8 21.7 19.5 16.2 14.9 12.4 10.0 13.5 15.6 17.8 15.5 15.4 16.1

RoCE (%) RoE (%) Sector / Company

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

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Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction;

Buy: >10%/15% for large caps/midcaps, respectively;

Hold: Up to +/-10%;

Sell: -10% or more;

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Head – Research

[email protected]

ICICIdirect.com Research Desk,

ICICI Securities Limited,

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Road No 7, MIDC,

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Mumbai – 400 093

[email protected]

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Disclaimer

ANALYST CERTIFICATION

We /I, Mayur Matani, MBA and Harshal Mehta, MTech 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) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.

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It is confirmed that Mayur Matani, MBA and Harshal Mehta, MTech, research analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

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