Initiating Coverage – Balkrishna Industries
ANS Research Desk “ARHAM Financial Centre, Harihar Chowk, Rajkot Gujarat Contact Information Telephone No: 0281-6699401 Email: [email protected] Date: 10/10/2011
Nifty 4940 Sensex 16415 Script Details Face Value ` ` ` ` 2 Market Cap ```` 1803 Cr 52 Weeks High/Low 186/109 Avg. Daily Volume 6-month 15527
Shareholding Pattern As On Jun 11 (%)
Promoters 54 Corporate Bodies & 32 Institutions
Public 14
Particulars FY11 FY12(E) FY13(E)
Consolidated Result (```` Crores)
Net Sales 2192 2505 2981 EBIDTA 387 460 566 Net Profit 194 207 237 EPS 20.13 21.48 24.61 B.V./Share 89.11 108.72 131.47 P/E 6.62 7.87 6.87 P/B.V. 1.50 1.55 1.29 E.V./EBIDTA 5.17 6.04 5.36 Div Yield 1.05 0.95 0.95 ROE (%) 25.34 22.43 21.93
Research Analyst: Pranav Mehta
Brief Description:
Balkrishna Industries is engaged in the manufacturing of OHT Specialized tyres which are mainly used in Agricultural applications, mining related applications etc. The company operates in a Niche market segment and, as such, does not have any pure-play competitor in the Indian domestic market.
Investment Rationale:
Lower Employee Cost compared to International peers Invested heavily in In-house R&D
Major expansion drive planned by the company to increase its market share both domestically and internationally
Price differential with International peers will allow the company to increase its prices without any negative consequences
Does not face too much Competition on the Domestic front as well as from Chinese companies
Recommendation: Accumulate Coverage Initiated on: 10th October, 2011
BSE Code: 502355 Bloomberg Code: BIL IN CMP ```` 168
Valuations & Target Price:
Particulars
Mcap/Net Sales
0.7 (expectation)
Net Sale Expected FY 13(E)
2981 Crores
Shares outstanding currently
96658595
Target Price (
`
`
`
`
)
215
Particulars
P/E
8.5 (expectation)
EPS FY 13(E)
24.61
Segment wise Breakup
Source: Company Presentation
Geographical Breakup
Source: Company
Company
Background:
Balkrishna Industries Limited
group
Mills, Balkrishna Tires and Balkrishna Synthetic. Balkrishna manufactures a wide range of Off Highway Tyre
Handling, Mining Vehicles, Construction & Earth Moving equipments. Balkrishna exports nearly 95% of its tyres under the BKT brand
export markets are located in Western Europe, North America and Australasia. Currently the company has 2 plants located in Bhiwadi and Chopanki in Rajasthan (installed capacity of
of 40000 tons).
tyres) is 75% i.e. (120000 tons) and it is currently carrying out upgrading and debottlenecking at its existing facilities which would result in the achievable capacity to increase to 14
variety
a new green
tons at a cost of nearl
expansion, achievable production capacity will reach 230000 MTPA. BKT has nearly 200 dealers of which 100 dealers are in Europe. range of over 1900 SKUs.
(Agriculture) and Earthmax (Off the road segment). (OHT) segment is an $11
Goodyear, Continental, Pirelli and Bridgestone (accounting for a com share of 55
65%
29% 6%
Agriculture OTR Others
47%
23% 16% 14%
Europe America Asia Others
Company Overview
Background:
Balkrishna Industries Limited (BKT) is the flagship company of Siyaram
group and was incorporated in 1961. It is the holding company of Balkrishna Paper Mills, Balkrishna Tires and Balkrishna Synthetic. Balkrishna manufactures a wide range of Off Highway Tyres (OHT) which is mainly used in Agriculture, Material Handling, Mining Vehicles, Construction & Earth Moving equipments.
alkrishna exports nearly 95% of its tyres under the BKT brand
export markets are located in Western Europe, North America and Australasia. Currently the company has 2 plants located in Bhiwadi and Chopanki in Rajasthan (installed capacity of 60000 tons each) and 1 plant in Aurangabad (installed capacity of 40000 tons). BKT’s current achievable capacity (capacity actually used to produce tyres) is 75% i.e. (120000 tons) and it is currently carrying out upgrading and debottlenecking at its existing facilities which would result in the achievable capacity to increase to 140000 tons. The actual capacity utilization is low
variety-low volume nature of the business. The company is also on track to establish a new green-field plant at Bhuj which would have an installed capacity of 120000 tons at a cost of nearly Rs. 1200 crores and would be completed by FY13
expansion, achievable production capacity will reach 230000 MTPA. BKT has nearly 200 dealers of which 100 dealers are in Europe. range of over 1900 SKUs. BKT is the main brand-name while sub
(Agriculture) and Earthmax (Off the road segment). Worldwide Off highway tyre (OHT) segment is an $11-12 billion industry with major players being Michelin, Goodyear, Continental, Pirelli and Bridgestone (accounting for a com
share of 55-60%). BKT’s market share is nearly 3.5%.
is the flagship company of Siyaram-Poddar company of Balkrishna Paper Mills, Balkrishna Tires and Balkrishna Synthetic. Balkrishna manufactures a wide mainly used in Agriculture, Material Handling, Mining Vehicles, Construction & Earth Moving equipments.
alkrishna exports nearly 95% of its tyres under the BKT brand-name. Its main export markets are located in Western Europe, North America and Australasia. Currently the company has 2 plants located in Bhiwadi and Chopanki in Rajasthan 60000 tons each) and 1 plant in Aurangabad (installed capacity BKT’s current achievable capacity (capacity actually used to produce tyres) is 75% i.e. (120000 tons) and it is currently carrying out upgrading and debottlenecking at its existing facilities which would result in the achievable capacity 0000 tons. The actual capacity utilization is low due to the high The company is also on track to establish field plant at Bhuj which would have an installed capacity of 120000 and would be completed by FY13. After the expansion, achievable production capacity will reach 230000 MTPA.
BKT has nearly 200 dealers of which 100 dealers are in Europe. It has a product e while sub-brands are Agrimax Worldwide Off highway tyre 12 billion industry with major players being Michelin, Goodyear, Continental, Pirelli and Bridgestone (accounting for a combined market
Sales Channel Breakup
The company has been in Net Profit between FY06
OEMs served by the company Operating Divisions: 1. 2. 3. 4. 80% 14% 6%
Distributors OEMs Off-take
The company has been able to grow at a CAGR of nearly
in Net Profit between FY06-FY11. Its ROE has averaged nearly 27% for last 5 years.
OEMs served by the company Volvo John Deere CNH BOMAG SAME Ferrari JCB Operating Divisions:
1. Agricultural Tyres: BKT sells its radial tyres for the Agricultural sector under the brand name of AGRIMAX. The tyres are used in Tractors, Trailers and Other farm equipments. In order to cater the expected growth in the agricultural sector in coming years, the company has be increasing its production capacity over last few quarters.
2. OTR/Construction/Industrial Tyres: BKT sells its Industrial steel radial OTR tyres under the brand name of EARTHMAX. These tyres are mainly used in Mining trucks, Loaders & Dozers, Dump trucks
other such construction related equipments.
3. ATV Tyres: BKT also manufactures tyres for All Terrain Construction vehicles which are equipped with puncture resistance features. Company is also capable of producing specifically designed tyres for SU
4. Lawn & Garden Tyres: BKT produces tyres for Golf Carts as well as Lawn and Garden tyres.
28.5% in Sales and 23.0% FY11. Its ROE has averaged nearly 27% for last 5 years.
BKT sells its radial tyres for the Agricultural sector under the brand name of AGRIMAX. The tyres are used in Tractors, Trailers and Other farm equipments. In order to cater the expected growth in the agricultural sector in coming years, the company has been increasing its production capacity over last few quarters.
BKT sells its Industrial steel radial OTR tyres under the brand name of EARTHMAX. These tyres are mainly used in Mining trucks, Loaders & Dozers, Dump trucks and in
BKT also manufactures tyres for All Terrain Construction vehicles which are equipped with puncture resistance features. Company is also capable of producing specifically designed tyres for SUVs.
Product Portfolio: Segment Type % of share in total sales Particulars
Agriculture 65 Tires for Tractors, Trailers, Farm Equipment which are specifically designed as per farm requirements
Tractor radial tires sold under brand “Agrimax”
OTR 29 Industrial, Construction & Earth Mover Tires
Tires for articulate dump trucks, loaders, underground mines Steel Radial OTR tire sold under brand name Earthmax
Others 6 Tires for Sports, Utility vehicles Tires for All Terrain Vehicles(ATV)
Source: Company’s Investor Presentation
The company manufactures a wide variety of tyres (1800 SKUs). It manufactures radial tyres under sub-brand names of Agrimax (for Agricultural use) and Earthmax (for OTR use). Radial tyres attract better margins compared to other types of tyres. The company’s in-house research team has successfully launched a number of new tyre types in the past and is expected to do so in the future as well. Company will also be enhancing its product portfolio through manufacturing of steel radial mining tyres and special puncture proof defense tyres.
Demand Drivers in Company’s Markets:
Market % of Total Sales Reasons
Europe 47 Large & Mechanized Farms Large Replacement Market
Americas 23 Growth in Agriculture & Mining Sector Large Farm-Equipments trends
Developing economies of Brazil, Argentina, Colombia, etc. Asia Pacific 17 Agriculture & Infrastructure is growing and will continue to grow
Users are moving from traditional to larger sized equipments Source: Company’s Investor Presentation
Currently Balkrishna Industries earns more than 90% of its revenue via exports mainly to Americas and European regions. Company gets nearly 80% of its total sales from the Replacement market while OEMs forms about 14% of the sales. The replacement cycle for agricultural tires is nearly 2-3 years while tires used in Mining & Construction have replacement cycle of 1-1.5 years. Agricultural sector throughout the world is undergoing a change and is expected to grow in the future as well helped by higher commodity prices. On the other hand Infrastructure growth, particularly in developing countries, is expected to keep the demand for tires high. BKT is planning to expand its presence in India through the development of its green field project and is planning to increase its market share. Moreover the company is also planning to expand into Russian and CIS markets as well.
Raw Material Composition
Source: Company Presentation
Demand and Supply of Natural Rubber is balanced synchronization
Natural Rubber
due to new plantations scheduled to occur between 2010 improved yields expected from the plantations.
48%
27%
6% 3% 16%
Rubber Carbon Black Fabric Bead Wire Chemicals
Demand and Supply of Natural Rubber is balanced internationally synchronization
Source: Michelin Tyres Annual
Natural Rubber production is expected to increase by around 40% by the year 2020 due to new plantations scheduled to occur between 2010
improved yields expected from the plantations.
internationally and not out of
Annual Presentation February 2011
production is expected to increase by around 40% by the year 2020 due to new plantations scheduled to occur between 2010-2020 by +1 million ha and
Trend in Rubber Prices (````/kg)
Source: Rubber board of India, ANRPC
The rubber prices have remained firm for past year and a half on the back of strong demand from emerging economies of India and China. Another reason for the high prices is the decrease in yield of rubber from major producing companies due to unpredictable climatic conditions. Most of the Rubber plantations were done in 1980s which have now aged thereby leading to a drop in yield production.
Indian Government had recently introduced a maximum ceiling of `20.46/kg which resulted in Rubber prices cooling off. India is facing higher prices mainly due to a wide gap between demand and supply and aggregated somewhat by speculation. New plantations done in between 2005-2008 would start affecting supplies by 2012 only which might lead to mild reduction in prices (Source: International Rubber Study Group (IRSG)). 0 5000 10000 15000 20000 25000
Investment Rationale
Lower Employee Cost and In-house R&D results in higher profit margins for the
company
Balkrishna has been investing in enhancing its engineering talent which has resulted in better products for its clients. The lead time for coming out with a new product is nearly 8-10 weeks and the company develops around 150 new tyre size every year. The company has shifted its focus towards Radial tyres and has developed in-house capabilities to manufacture Radial OTR and Agricultural OTR. Demand for radial tyres is more than the supply and the profit margins are also higher. In addition, the cheap labor available in the Indian markets also helps the company achieve greater profitability since company’s labor costs are about 30% cheaper than its international peers.
Company plans to increase its market share in India and also expand into other
regions
Balkrishna has increased its distributor network in Western countries and is planning to add more distributors going forward. Through its planned capacity expansion the company is also looking to improve its market share in India and wants to increase it from current 10% to 13% of its total sales. The company has also succeeded in keeping its selling & distribution costs lower through the direct distributor model.
Company’s Sales have shown good resilience during recession in its main markets
As can be observed from its financials, BKT has been able to steadily increase its Sales even during the times of Financial Crisis in its Western markets. Company witnessed customers shifting from International Premium brands to more cost effective brands like BKT in order to cut their cost. BKT mainly focuses on Replacement markets which proved to be a useful bet during the last recession of 2008. It has also benefitted immensely from shift in Agricultural growth both in the Indian and Western markets. The increasing need of improving agricultural productivity in order to feed the ever growing population will lead to increased demand of Farm Tractors and Other machinery which would ultimately lead to an increased demand of tyres.
Moreover, with the consumption of minerals far outstripping their supply, the Mining sector is also expected to grow with a decent rate in the near future thereby leading to increased demand for specialty tyres.
Market % of Total Sales Reasons
Europe 47 Large & Mechanized Farms Large Replacement Market
Americas 23 Growth in Agriculture & Mining Sector Large Farm-Equipments trends
Developing economies of Brazil, Argentina, Colombia, etc. Asia Pacific 17 Agriculture & Infrastructure is growing and will continue to grow
Users are moving from traditional to larger sized equipments
In India also the construction equipment industry is expected to grow significantly due to spending on Infrastructure construction and development. Management expects the industry to grow 5 fold from current USD 2.3 billion to USD 12-13 billion in coming 3-5 years. BKT is well placed in this space also since it has tie-ups with big players for the OTR segments.
Company has been able to pass raw material price increase to its customers and
has enough headroom to go for further price increase
The Average Rubber cost for the company is nearly$4700 per MT. BKT supplies tyres which are 30% cheaper to their International peers. This gives it ample room to increase its prices and pass on the higher raw material prices to its customers. The company has already taken a hike of about 15% for the current year and Management is confident of taking more hikes in the future if need arises.
Management expects prices of raw rubber to remain stable or fall in the coming
future which would help the company achieve higher margins
Management expects prices of rubber to correct in the near future since they believe that the rise in prices has not been supported by true fundamentals but rather by speculative activities. In addition to this the new rubber plantations done in between 2005-2008 would start supplying rubber by next year which might lead to further corrections in the rubber prices. Such price corrections in its major input raw material will definitely help the company reduce its costs and post better profitability in coming few quarters.
BKT will not face too much Competition on the domestic front as well as from
Chinese companies
BKT operates in a niche segment wherein Customization of products and Low volumes are the norm. The company has to give a greater number of choices to their customer which is evident from the fact that company has about 1900 SKU’s currently in order to cater to varied demands by customers. This customization proves to be a hindrance for most of the global and local tyre manufacturers who want volume growth and so prefer standardization in their products. Globally there are only few players who are pure play OHT tyre manufacturers while big companies like Michelin, Firestone and Goodyear produce OHT tyres as one of their many products. Domestically also tyre manufacturers have concentrated more on manufacturing Passenger Car tyres as well as Truck and Bus Tyres due to higher volume and growth prospects. The low volume growth prospects and high Customization has also kept away the Chinese tyre manufacturers from entering this segment and this may continue in the near future also due to the same reasons. Chinese manufacturers prefer high volume businesses wherein they can use their enhanced capacities to produce goods cheaply and the OHT segment might not be attractive to them.
Investment Risks
Higher Input prices may result into lower profitability
Although management expects the prices of its key raw materials to come down it is
quite possible that the reverse might actually occur if there is a sudden spurt in
demand from China and other developing countries. Moreover with interest rates at
near zero in U.S. and Western economies struggling with growth there may be a
further possibility of Quantitative easing by these economies. If this happens than
the extra money printed will flow to commodities, which happened earlier as well,
which may result into a rise in commodity prices. If this happens than there is every
possibility that company might face pressure on its profitability and margins.
However such a negative effect will affect all of its International peers which will
somewhat mitigate the risk for the company.
Currency fluctuations may result into losses and lower profitability
BKT has hedged its receivables position at an average of `45/$ and `64/Euro. So currently they are protected due to depreciation of Indian rupee against both these currencies. However going forward if Rupee appreciates significantly against Euro or Dollar, which according to us does not seem to be a great possibility due to negative domestic factors, the company may face mark to market losses on its hedged positions which may severely affect its financial results.
Slowdown in Global Economy is a serious concern
There is a very compelling case of the entire Global economy slowing down and the recent happenings in Europe, America and even BRIC countries has further strengthened this thinking. In such a scenario BKT might not be able to show good growth since its main markets are located in Europe and America.
Company’s concentration on Replacement demand may help it out under this situation but than also there may be a possibility of lower Sales growth.
Higher Profitability may draw interest of competitors in the future
Currently the company does not face much competition in its niche segment from domestic players due to high level of customization involved in the business and low volume growth. These requirements are one of the reasons that company has been able to command good prices, though well below the prices charged by its International Peers, for its products leading to higher margins and better profitability. However highly profitable industries with medium to low entry barriers always attract new entrants which lead to an overall decrease in margins for the whole industry. Right now there are no major players in the domestic markets but in future some new competitor may arise or some International peer may set shop in India due to cheap labor availability which might lead to a competitive threat for BKT.
Q1 FY12 RESULT HIGHLIGHTS
Source: ACE Equity, ANS Research
PROFIT & LOSS (Q1 FY2012) (STANDALONE RESULTS)
(In Crores) Particulars
Jun-2011 Jun-2010 % VAR
Net Sales 581.43 456.03 27.50 Other Income 0.55 0.49 12.24 Total Exp. 478.77 370.65 29.17 Op. Profit 106.22 87.47 21.44 Interest 3.30 3.35 1.49 Depreciation 19.91 17.90 11.23 PBT 83.01 66.22 25.35 Tax 26.90 21.85 23.11 PAT 56.11 44.37 26.46 Adjusted EPS 5.81 4.59 26..46 PBIDTM % 18.17 19.11 4.91 PATM% 9.60 9.70 0.98
FINANCIAL HIGHLIGHTS
Source: ACE Equity, ANS Research
Source: ACE Equity, ANS Research
PROFIT & LOSS (CONSOLIDATED RESULTS)
(IN CRORES)
Particulars Mar 13 (E) Mar 12 (E) Mar 11 Mar 10 Mar 09 Net Sales 2981.37 2505.36 2192.09 1563.73 1399.86 Total Exp. 2415.17 2044.43 1824.63 1179.21 1195.86 Other Income 22.36 21.67 20.42 30.03 7.12 EBIDTA 566.20 460.93 387.88 414.55 211.12 Depreciation 138.49 92.99 77.34 68.64 58.63 Interest 61.69 48.58 22.34 19.33 38.35 EBT 366.02 319.36 288.20 326.58 113.30 Tax 128.11 111.78 93.61 109.75 40.94 PAT/ Net Profit 237.91 207.59 194.60 216.84 74.05 Adjusted EPS 24.61 21.48 20.13 22.43 7.66
Div (%) 80 80 70 70 60
BALANCE SHEET (CONSOLIDATED RESULTS)
(IN CRORES) Particulars
Mar 13 (E) Mar 12 (E) Mar 11 Mar 10 Mar 09 Share Capital 19.33 19.33 19.33 19.33 19.33 Total Funds 1270.78 1050.90 861.35 681.38 478.12 Total Debts 1270 1000 621.48 477.73 482.6 Net Block 1799.65 1331.49 724.85 646.51 564.13 Net Current Assets 1043.35 862.29 643.66 439.80 365.71 Total Assets 2135.13 1794.22 1482.83 1159.12 960.74 Book Value/Share 131.47 108.72 89.11 70.49 49.46
Source: ACE Equity, ANS Research
CASH FLOW (CONSOLIDATED RESULTS)
(IN CRORES) Particulars
Mar 13 (E) Mar 12 (E) Mar 11 Mar 10 Mar 09
EBT 366.02 319.36 288.14 326.43 114.49
Depreciation 138.49 92.99 77.34 68.64 58.63
Working Capital Changes -153.51 -212.52 -164.85 -315.74 -324.75
Taxes -128.11 -111.78 -90.91 -106.76 -29.44
Cash From Operations 277.02 129.07 73.36 209.87 289.85 Capital Expenditure 515.0 515.0 230.61 141.92 132.81 Free Cash Flow -237.98 -385.93 -157.25 67.95 157.04 Cash From Investments -399.24 -409.26 -171.03 -196.38 -132.49 Cash From Financing 149.77 274.06 104.56 -19.79 -155.99 Net Cash Inflow/Outflow 27.55 -6.14 6.89 -6.30 1.36 Opening Cash & Cash Equity 6.11 12.25 10.30 11.70 5.37 Closing Cash & Cash Equiv. 33.67 6.11 12.25 5.37 11.7
Source: ACE Equity, ANS Research
IMPORTANT RATIOS
Particulars Mar 13 (E) Mar 12 (E) Mar 11 Mar 10 Mar 09
EBIDTA Margin (%) 18.85 18.24 17.63 25.33 15.08
Net Profit Margin (%) 7.92 8.21 8.80 13.61 5.26
D/E 1.00 0.95 0.72 0.70 1.01 Financial Leverage (X) 1.69 1.71 1.71 1.83 2.15 Current Ratio 8.92 8.88 4.95 6.46 7.40 Cash Ratio 0.18 0.04 0.05 0.04 0.14 ROANW (%) 20.50 21.71 25.23 37.40 16.54 ROACE (%) 21.93 22.43 25.34 33.71 17.48 P/E 6.87 7.87 6.62 5.70 3.55 P/B.V. 1.29 1.55 1.50 1.81 0.55 EV/Sales 0.96 1.05 0.87 1.09 0.52 EV/EBIDTA 5.36 6.04 5.17 4.44 3.60
Profit Plough back (%) 93.50 92.55 93.05 93.76 84.33 Total Asset Turnover (X) 1.52 1.53 1.66 1.48 1.46
Share Price Movement:
5 Years performance of Balkrishna Industries vs. Sensex
-
Indicates share price performance of Balkrishna Industries
-
Indicates share price performance of Sensex
We have not included NSE data because the stock got listed on NSE just last year
only. The big drop in share price of seen at extreme right corner of the chart is due to
the splitting of shares from face value of Rs.10 to Rs.2 done last year.
Outlook
Balkrishna Industries has shown a CAGR growth of 28.50% in Net Sales and 23% in
Net Profits between FY2006-2011 period. BKT is the only listed company in India
which solely focuses on Niche OTH and Agricultural tyre segment. The company is
being backed by a strong management team and has also given good returns to its
long term shareholders. Going forward, the major expansion of production capacity
being carried out at Gujarat will help the company increase its market share on both
domestic and international fronts.
The biggest worry for the company has been the record high levels of Raw Rubber
prices (its main input material) and this could dampen its margins if the prices
continue to remain firm in the coming future. Also any delay in operation
streamlining at its new Bhuj (Gujarat) plant may have a negative effect on its cash
flows.
Valuations
We have assumed that revenues are likely to grow by a CAGR of 16% over FY12
(E)-13(E) period and have kept the EBIDTA margins at 18.5% which are slightly less than
its historical average. For this we have used the CAGR modeling for forecasting the
company’s financial results.
At the current market price of
`
168 BKT trades at a trailing PE of 8.34.
We expect FY
12 (E) forward EPS to be
`
21.48 and FY 13 (E) forward EPS to be
`
24.61. So at CMP
BKT is trading at a one year forward PE of 7.82 and a two year forward PE of 6.82
respectively. From E.V./EBIDTA perspective the company is currently trading at
6.02 and 5.34 of forecasted expectations.
Recommendation
We think that the stock has potential to go to higher levels and our target price
comes to nearly
`
215 (using Mcap/Sales ratio of 0.7 for FY 13(E) Net Sales). Also
taking its historical PE multiple of nearly 8.5x for FY 13(E) EPS of 24.61 we get a
target price
`
210. Investors can accumulate this stock in between
`
160-165 levels
with atleast a 2 year perspective.
The stock has outperformed the general markets in last 3 years (from
`
26 on
March 2, 2009 to
`
169 currently) giving a return of nearly 6.5x. During the same
time Sensex has given a return of 1.88x. From October 2010 also, the stock has
given a positive return of 20% while Sensex has given a negative return of 19.49%.
Hence investors should remain cautious on the near term return performance of the
stock. However, the stock is a
good long term play
on the niche OTH and Agricultural
tyre segment and investors can hope to get good returns with a
minimum 2 years
perspective.
Disclaimer: The information being provided to you is compiled from sources we believe to be reliable. ANS Pvt. Ltd cannot and does not take any guarantees about the accuracy, reliability, validity or timeliness of the information and/or data provided/made available to you in this document. The views are purely indicative. Neither ANSPL nor any of its associates, subsidiaries, affiliates, directors, and/or officials become liable or have any kind of responsibility for any loss or damage that you may incur from any decisions taken by you based on our recommendations. None of the information contained herein constitutes a solicitation from ANSPL to Buy and/or Sell securities and/or any Future, Options or Other Financial Contracts. Clients may exercise their own caution and double check or verify the information contained in our recommendations.