ADD

Sun Pharmaceuticals (SUNP)

Pharmaceuticals AUGUST 14, 2019
RESULT
Coverage view: Neutral

Operationally in line, though specialty short on details. Adjusting for lower R&D Price (`): 439
and forex gains, SUNP’s EBITDA was in line with our estimates, with lower tax rate Fair Value (`): 460
driving a strong PAT outperformance. SG&A and R&D spends will likely be volatile
BSE-30: 36,958
reflecting promotional patterns, and initiation of pivotal trials for Ilumya in PsA and AS
in 2HFY20. Disclosure of US$94 mn specialty sales in 1QFY20 is broadly in line with our
estimates, though, it fell short of expectations with no leading indicators to help assess
the ramp in Ilumya. ADD with unchanged fair value of `460/share.
C o mpan y d ata an d valuatio n summary
Sun Pharmaceuticals
Stock data Forecasts/Valuations 2019 2020E 2021E
52-week range (Rs) (high,low) 679-345 EPS (Rs) 16.1 19.6 23.8
Market Cap. (Rs bn) 1,053.9 EPS growth (%) 6.3 21.2 21.5
Shareholding pattern (%) P/E (X) 27.2 22.5 18.5
Promoters 54.4 Sales (Rs bn) 290.7 332.6 361.5
FIIs 15.5 Net profits (Rs bn) 38.8 47.1 57.2
MFs 9.3 EBITDA (Rs bn) 63.1 76.0 89.1
Price performance (%) 1M 3M 12M EV/EBITDA (X) 15.2 12.2 9.8
Absolute 7.7 10.3 (22.1) ROE (%) 9.8 10.8 11.3
Rel. to BSE-30 12.9 11.8 (20.2) Div. Yield (%) 0.5 0.9 1.1

In line when adjusted for lower R&D and forex gains

SUNP’s 1QFY20 revenues were 2.2% ahead of our estimates. US was mixed with ex-Taro
revenues at ~$285 mn qoq (+US$18 mn vs KIE), even as Taro declined ~US$13 mn to ~US$130
mn (vs KIE: ~US$150 mn). Domestic formulations grew 7% yoy, in line with our estimates.
Developed markets RoW grew 63% yoy, helped by the consolidation of Pola Pharma in Japan,
as well as organic growth, driving much of the revenue outperformance, while EMs were flat on
constant currencies. Gross margins, at 70.7%, were 185bps lower than estimates, partially,
impacted by 300bps GM compression in Taro. SG&A and staff costs were broadly in line with
estimates though, R&D costs surprised positively, declining 26% yoy (-26% vs KIE), and driving
EBITDA margins higher at 23.8% (24% ex-forex). Adjusting for ~`680 mn forex gains, and
lower R&D costs, EBITDA was operationally in line with estimates. Sharply lower tax rate at 9%
resulted in PAT exceeding estimates by 31%. The management guided for lumpiness in R&D
costs as it has not yet finalized the protocol for pivotal trials for AS and PsA, and also guided to
quarterly volatility in Ilumya promotional spends (softer in 1Q and 3Q).
Global specialty business at US$94 mn in the quarter, in line with our estimates
As a part of its efforts to improve the visibility of its specialty business, SUNP split out sales of its
global specialty franchise, which stood at US$94 mn in 1QFY20, and validating our estimates of
~US$330 US specialty sales in FY2020, bulk of which are from Absorica and Levulan, with
Ilumya likely at US$5-6 mn (US$18-20 mn in FY2019, as per subsidiary AR). The numbers also
indicate limited ramp of Ilumya on net-sales basis, though, we note that the prescription run-
rate continues to improve. Surprisingly, the management refused to disclose any KPI’s for
Ilumya, taking a step backwards in our view, making it difficult to assess the success in winning
new patients, as well as converting patients from free access to paid prescriptions. The
management also provided R&D numbers for specialty business, which stood at 15% of sales in Chirag Talati, CFA
chirag.talati@kotak.com
1QFY20 (US$14 mn), though, we note that FY2019 had seen a sharp ~45% drop in specialty Mumbai: +91-22-4336-0871
R&D, given limited investments so far in label expansion trials for Ilumya. The management
Kumar Gaurav
guided to another delay in Cequa, and now expects a launch in 3QFY20, though, we believe, kumar.g@kotak.com
the value proposition and window of opportunity continues to diminish given the potential for Mumbai: +91-22-4336-0872
Restasis generics, and potentially aggressive promotion by Novartis to promote Xiidra.
ADD with a fair value of `460/share
While our concerns on the specialty pipeline persist, we believe these are now adequately
captured in the valuation. We marginally trim our estimates by 1-3%. ADD.
Kotak Institutional Equities Research
kotak.research@kotak.com
Mumbai: +91-22-4336-0000

For Private Circulation Only. FOR IMPORTANT INFORMATION ABOUT KOTAK SECURITIES’ RATING SYSTEM AND OTHER DISCLOSURES, REFER TO THE END OF THIS MATERIAL.
Pharmaceuticals Sun Pharmaceuticals

Exhibit 1: Sun Pharma – consolidated 1QFY20 interim results

March fiscal year-ends, (Rs mn)
(% chg.) yoy
1QFY20 1QFY20E 1QFY19 4QFY19 1QFY20E 1QFY19 4QFY19 FY2020E FY2019 (% chg.) FY2021E
Sales 83,744 81,933 72,242 71,639 2.2 15.9 16.9 332,555 290,659 14.4 361,541
Gross profit 59,166 59,401 51,173 53,251 (0.4) 15.6 11.1 236,037 211,969 11.4 259,038
Staff costs (15,404) (16,050) (14,330) (15,688) (4.0) 7.5 (1.8) (62,654) (59,671) 5.0 (66,414)
R&D (4,220) (5,750) (4,849) (5,670) (26.6) (13.0) (25.6) (20,773) (19,850) 4.7 (21,987)
SG&A (19,586) (19,620) (15,927) (21,726) (0.2) 23.0 (9.8) (76,649) (69,373) 10.5 (81,561)
EBITDA 19,956 17,982 16,067 10,168 11.0 24.2 96.3 75,960 63,076 20.4 89,076
Depreciation (4,571) (4,750) (4,016) (4,541) (3.8) 13.8 0.7 (19,629) (17,533) 12.0 (20,229)
Interest expense (1,041) (1,600) (1,309) (1,500) (35.0) (20.5) (30.6) (4,947) (5,553) (4,872)
Other income 2,130 2,500 1,998 2,815 (14.8) 6.6 (24.3) 9,420 10,255 10,569
Exceptionals — — — — — (12,144) —
Pretax profits 16,427 14,132 12,739 6,918 16.2 28.9 137.5 60,804 38,087 59.6 74,544
Tax (1,461) (2,261) (1,639) 288 (35.4) (10.9) (607.0) (8,349) (6,009) 38.9 (12,249)
Minority interest (1,092) (1,275) (1,275) (847) (14.4) (14.4) 28.8 (5,399) (5,424) (5,113)
Net income 13,875 10,595 9,825 6,359 31.0 41.2 118.2 47,057 26,654 76.5 57,181
Net income (adjusted) 13,875 10,595 9,825 6,359 31.0 41.2 118.2 47,057 38,798 21.3 57,181
EPS (Rs) 5.8 4.4 4.1 2.6 31.0 41.2 118.2 19.6 11.1 76.5 23.8
EPS adjusted (Rs) 5.8 4.4 4.1 2.6 31.0 41.2 118.2 19.6 16.1 21.3 23.8
Tax rate (%) 8.9 16.0 12.9 (4.2) 13.7 15.8 16.4

Divisional sales (11)

US (US $ mn) 424 425 380 443 (0.2) 11.6 (4.3) 1,648 1,526 8.0 1,759
- Taro US 131 153 123 143 (14.2) 7.1 (7.9) 527 536 508
- Ex-Taro US 293 267 257 300 9.6 13.7 (2.6) 1,121 990 1,252
Domestic formulations (Rs. mn) 23,140 23,242 21,520 11,010 (0.4) 7.5 110.2 94,465 73,480 28.6 103,133
RoW (Rs mn) 25,270 23,729 20,240 22,820 6.5 24.9 10.7 100,851 87,640 15.1 112,358
API 4,610 4,400 3,940 4,840 4.8 17.0 (4.8) 18,598 17,300 7.5 19,527

% margin
Gross margin 70.7 72.5 70.8 74.3 71.0 72.9 71.6
R&D 5.0 7.0 6.7 7.9 6.2 6.8 6.1
SG&A 41.8 43.5 41.9 52.2 41.9 44.4 40.9
EBITDA 23.8 21.9 22.2 14.2 22.8 21.7 24.6

Source: Company, Kotak Institutional Equities estimates

Exhibit 2: Significant DTC spends required to penetrate the Exhibit 3: Skyrizi launch mimicking Tremfya initial trends
crowded psoriasis market Quarters post launch (US$ mn)
DTC spend, calendar year-end 2017, US$ mn

2017 2018 Cosentyx Stelara Otezla

400 375 Taltz Trefmya Skyrizi
700
341
350
600
300
500
250
400
200
300
139
150 116
100 200
100 83 78
64
100
50
0
0
Q15

Q25
Q11
Q13

Q17
Q19
Q21
Q23

Q27
Q5
Q1
Q3

Q7
Q9

Humira Taltz Cosentyx Otezla

Note: Humira spend on psoriasis in CY2018: US$45 mn
Source: Industry data, Kotak Institutional Equities estimates
Source: Industry data

2 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Sun Pharmaceuticals Pharmaceuticals

Exhibit 4: FY2021 to be a cliff year for SUNP – further in-licensing deals critical to drive incremental growth beyond FY2022
March fiscal year-ends, 2013-22E (US$ mn)
2013 2014 2015 2016 2017 2018 2019 2020E 2021E 2022E
DUSA 55 72 111 105 130 93 94 98 102 106
Absorica 194 201 184 197 240 145 130 92 16
BromSite 4 25 32 38 46 48
Odomzo 4 12 17 27 40 49
Ilumya 13 32 145 177
Cequa 0 11 61 82
Yonsa 25 25 30 23
Xelpros 5 15 25 35
Key US brands 55 266 312 289 335 370 331 377 542 537
- as a % of US sales 4.9 16.4 13.9 14.0 16.3 27.3 21.7 22.9 30.8 29.9
- % growth 386 17 (7) 16 10 (10) 14 44 (1)

Source: Kotak Institutional Equities estimates

Exhibit 5: New product launches and specialty to drive US revenue growth

March fiscal year-ends, 2013-22E (Rs mn)

2015 2016 2017 2018 2019 2020E 2021E 2022E

Branded/specialty 312 289 335 370 331 377 542 537
Taro US 777 866 784 550 536 527 508 507
SUNP key opportunities 730 522 618 240 429 416 428 443
SUNP base business 425 390 318 195 230 328 281 307
Total US sales 2,244 2,066 2,056 1,354 1,526 1,648 1,759 1,794
yoy growth (%) 38.5 (7.9) (0.5) (34.1) 12.7 8.0 6.8 2.0
Branded/specialty 14 14 16 27 22 23 31 30
Taro US 35 42 38 41 35 32 29 28
SUNP key opportunities 33 25 30 18 28 25 24 25
SUNP base business 19 19 15 14 15 20 16 17

Source: Company, Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 3

Pharmaceuticals Sun Pharmaceuticals

Exhibit 6: Sun Pharma – we expect US to drive revenue growth

March fiscal year-ends, 2014-22E (Rs mn)
2014 2015 2016 2017 2018 2019 2020E 2021E 2022E
Domestic formulations 36,918 67,166 75,537 77,490 80,293 73,480 94,465 103,133 113,448
US (excluding Taro) 53,031 89,692 71,654 76,383 45,977 62,248 70,878 79,650 81,846
Taro (US) 40,465 47,506 56,634 52,487 35,502 37,286 36,511 35,190 35,114
RoW/EM 19,084 60,646 57,461 77,399 78,132 87,640 100,851 112,358 125,213
Total formulations 149,498 265,010 261,286 283,759 239,904 260,654 302,706 330,331 355,621
API 8,010 9,910 14,025 15,980 13,993 17,300 18,598 19,527 20,504
O thers 138 792 752 715 679 1,000 950 903 857
O ther income 740 1,469 5,256 13,142 4,235 3,796 3,500 3,700 4,000
Total 158,386 277,181 281,318 313,595 258,812 282,750 325,753 354,461 380,982
yoy growth, %
Domestic formulations 24 82 12 3 4 (8) 29 9 10
US (excluding Taro) 107 69 (20) 7 (40) 35 14 12 3
Taro 27 17 19 (7) (32) 5 (2) (4) (0)
RoW 5 218 (5) 35 1 12 15 11 11
Total formulations 42 77 (1) 9 (15) 9 16 9 8
API 6 24 42 14 (12) 24 8 5 5
Total 39 75 1 11 (17) 9 15 9 7
% of sales
Domestic formulations 23 24 27 25 31 26 29 29 30
US (excluding Taro) 33 32 25 24 18 22 22 22 21
Taro 26 17 20 17 14 13 11 10 9
RoW 12 22 20 25 30 31 31 32 33
Total formulations 94 96 93 90 93 92 93 93 93
API 5 4 5 5 5 6 6 6 5

Source: Company, Kotak Institutional Equities estimates

Exhibit 7: Specialty R&D dipped in FY2019 and 1QFY20, though, likely to increase post initiation of pivotal trials for Ilumya in PsA and AS
March fiscal year-ends, 2013-22E (Rs mn)

2013 2014 2015 2016 2017 2018 2019 2020E 2021E 2022E
US Sales (Rs mn) 60,568 97,844 137,198 135,170 137,588 87,466 106,482 114,191 121,920 124,335
- Generics 21,355 35,898 65,357 54,573 56,275 20,832 36,909 41,752 38,740 40,879
- Specialty 2,979 16,086 19,080 18,892 22,455 23,874 23,015 26,141 37,560 37,223
- Taro 36,234 45,861 52,760 61,704 58,858 42,760 46,558 46,299 45,619 46,233
Sales 112,999 160,784 275,390 287,953 315,784 264,895 290,659 332,555 361,541 388,357

R&D expenses (Rs mn) (7,042) (10,169) (18,373) (23,025) (21,459) (20,669) (19,850) (20,773) (21,987) (23,152)
- Generics (4,504) (6,821) (11,455) (12,168) (10,934) (9,816) (11,864) (12,474) (11,781) (12,128)
- Specialty — — (2,913) (6,238) (5,641) (6,304) (3,591) (4,574) (6,667) (7,663)
- Taro (2,538) (3,348) (4,005) (4,618) (4,884) (4,549) (4,395) (3,725) (3,539) (3,362)

R&D as a % of sales (6.2) (6.3) (6.7) (8.0) (6.8) (7.8) (6.8) (6.2) (6.1) (6.0)
- of which generics 64 67 62 53 51 47 60 60 54 52
- of which Specialty — — 16 27 26 31 18 22 30 33
- of which Taro 36 33 22 20 23 22 22 18 16 15

R&D as a % of US sales (11.6) (10.4) (13.4) (17.0) (15.6) (23.6) (18.6) (18.2) (18.0) (18.6)
Generics R&D as a % of US generics sales (21) (19) (18) (22) (19) (47) (32) (30) (30) (30)
Specialty R&D as a % of US specialty sales — — (15) (33) (25) (26) (16) (17) (18) (21)
Taro R&D as a % of Taro sales (7) (7) (8) (7) (8) (11) (9) (8) (8) (7)

R&D expenses (US$ mn) (130) (168) (301) (352) (321) (320) (286) (300) (317) (334)
- of which generics (83) (113) (187) (186) (163) (152) (171) (180) (170) (175)
- of which Specialty — — (48) (95) (84) (98) (52) (66) (96) (111)
- of which Taro (47) (55) (66) (71) (73) (70) (63) (54) (51) (49)

Source: Company, Kotak Institutional Equities estimates

4 KOTAK INSTITUTIONAL EQUITIES RESEARCH

Sun Pharmaceuticals Pharmaceuticals

Exhibit 8: Sun Pharma - consolidated profit and loss, balance sheet, cash model
March fiscal year-ends, 2014-22E (Rs mn)
2014 2015 2016 2017 2018 2019 2020E 2021E 2022E
Net revenues 160,784 275,390 287,953 315,784 264,895 290,659 332,555 361,541 388,357
Gross Profit 132,990 207,998 223,121 234,477 190,648 211,969 236,037 259,038 281,251
Staff costs (20,744) (45,026) (47,971) (49,023) (53,671) (59,671) (62,654) (66,414) (70,731)
R&D expenses (10,169) (18,373) (23,025) (21,459) (20,669) (19,850) (20,773) (21,987) (23,152)
Other expenses (30,141) (64,462) (63,630) (63,103) (60,227) (69,373) (76,649) (81,561) (88,538)
EBITDA 71,936 80,136 88,494 100,893 56,081 63,076 75,960 89,076 98,831
Depreciation & amortisation (4,094) (11,947) (10,135) (12,648) (14,998) (17,533) (19,629) (20,229) (20,829)
EBIT 72,923 68,189 78,359 88,245 41,083 45,543 56,331 68,847 78,002
Net Interest (442) (5,790) (4,769) (3,998) (5,176) (5,553) (4,947) (4,872) (4,797)
Other income 5,081 4,008 914 6,232 8,388 10,255 9,420 10,569 9,669
Exceptional items (25,174) (2,378) (6,852) — (9,505) (12,144) — — —
Profit before tax 72,481 63,904 74,486 90,578 44,062 50,231 60,804 74,544 82,874
Tax & Deferred Tax (7,908) (9,147) (9,349) (12,116) (8,452) (6,009) (8,349) (12,249) (15,342)
Less: minority interest (7,375) (9,363) (11,126) (8,819) (4,468) (5,424) (5,399) (5,113) (5,090)
Net Income (adjusted) 57,198 45,394 54,011 69,644 33,665 38,798 47,057 57,181 62,443
EPS adjusted (Rs) 27.6 18.9 22.4 28.9 14.0 16.1 19.6 23.8 26.0
Balance sheet
Equity 204,461 293,582 354,901 404,305 419,847 427,736 476,180 532,152 592,285
Total borrowings 24,890 75,963 83,381 80,910 97,518 98,934 97,434 95,934 94,434
Deferred tax liability 2,757 985 616 3,148 2,190 1,043 1,043 1,043 1,043
Other liabilities 35,493 92,561 80,263 112,321 118,846 89,689 99,055 102,254 105,654
Total liabilities 293,708 490,279 542,196 614,102 643,028 646,938 703,248 760,919 822,953
Net fixed assets 58,242 110,201 133,606 149,403 157,111 172,919 163,290 153,061 142,232
Investments 7,876 5,989 5,933 16,062 31,572 39,518 39,518 39,518 39,518
Cash 95,886 131,155 147,045 153,717 140,200 112,263 142,816 195,447 255,120
Other current assets 121,192 215,576 225,287 287,360 286,061 283,535 318,921 334,191 347,380
Total assets 293,708 490,279 542,196 614,102 643,028 646,938 703,248 760,919 822,953
Cashflow statement
Operating profit before working capital 45,410 71,765 84,923 95,485 48,621 57,789 80,434 94,773 103,703
Tax paid (7,889) (17,404) (19,885) (20,571) (7,417) (8,864) (8,349) (12,249) (15,342)
Change in working capital 2,071 1,796 2,656 (4,092) (2,123) (26,960) (26,020) (12,070) (9,790)
Capital expenditure (9,060) (23,419) (33,825) (36,929) (19,608) (32,128) (10,000) (10,000) (10,000)
Free cash flow 30,532 32,739 33,869 33,894 19,473 (10,164) 36,065 60,454 68,572
Margins and ratios
Gross profit margin (%) 82.7 75.5 77.5 74.3 72.0 72.9 71.0 71.6 72.4
EBITDA margin (%) 44.7 29.1 30.7 31.9 21.2 21.7 22.8 24.6 25.4
Tax rate (%) 10.9 14.3 12.6 13.4 19.2 12.0 13.7 16.4 18.5
RoAE (%) 19.1 20.2 16.3 20.5 5.8 6.7 10.8 11.8 11.7
RoACE (%) 52.4 31.4 25.9 24.6 9.4 9.9 11.0 12.8 14.1

Source: Company, Kotak Institutional Equities estimates

KOTAK INSTITUTIONAL EQUITIES RESEARCH 5

Disclosures

"Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which
the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views
about the subject companies and securities, and (2) no part of his or her compensation was, is, or will be, directly or
indirectly, related to the specific recommendations or views expressed in this report: Chirag Talati, Kumar Gaurav."

Kotak Institutional Equities Research coverage universe

Distribution of ratings/investment banking relationships
Percentage of companies covered by Kotak Institutional
70%
Equities, within the specified category.

60%
Percentage of companies within each category for which Kotak
Institutional Equities and or its affiliates has provided
50%
investment banking services within the previous 12 months.

40% * The above categories are defined as follows: Buy = We

expect this stock to deliver more than 15% returns over the
29.9% next 12 months; Add = We expect this stock to deliver 5-15%
30% 26.0%
23.5% returns over the next 12 months; Reduce = We expect this stock
20.6% to deliver -5-+5% returns over the next 12 months; Sell = We
20% expect this stock to deliver less than -5% returns over the next
12 months. Our target prices are also on a 12-month horizon
basis. These ratings are used illustratively to comply with
10%
3.4% 3.4% applicable regulations. As of 30/06/2019 Kotak Institutional
0.5% 0.0% Equities Investment Research had investment ratings on 204
0% equity securities.
BUY ADD REDUCE SELL

Source: Kotak Institutional Equities As of June 30, 2019

Ratings and other definitions/identifiers

Definitions of ratings

BUY. We expect this stock to deliver more than 15% returns over the next 12 months.

ADD. We expect this stock to deliver 5-15% returns over the next 12 months.

REDUCE. We expect this stock to deliver -5-+5% returns over the next 12 months.

SELL. We expect this stock to deliver <-5% returns over the next 12 months.

Our Fair Value estimates are also on a 12-month horizon basis.

Our Ratings System does not take into account short-term volatility in stock prices related to movements in the market. Hence, a particular Rating may not
strictly be in accordance with the Rating System at all times.

Other definitions

Coverage view. The coverage view represents each analyst’s overall fundamental outlook on the Sector. The coverage view will consist of one of the following
designations: Attractive, Neutral, Cautious.

Other ratings/identifiers

NR = Not Rated. The investment rating and fair value, if any, have been suspended temporarily. Such suspension is in compliance with applicable regulation(s)
and/or Kotak Securities policies in circumstances when Kotak Securities or its affiliates is acting in an advisory capacity in a merger or strategic transaction
involving this company and in certain other circumstances.

CS = Coverage Suspended. Kotak Securities has suspended coverage of this company.

NC = Not Covered. Kotak Securities does not cover this company.

RS = Rating Suspended. Kotak Securities Research has suspended the investment rating and fair value, if any, for this stock, because there is not a sufficient
fundamental basis for determining an investment rating or fair value. The previous investment rating and fair value, if any, are no longer in effect for this stock
and should not be relied upon.

NA = Not Available or Not Applicable. The information is not available for display or is not applicable.

NM = Not Meaningful. The information is not meaningful and is therefore excluded.

6 KOTAK INSTITUTIONAL EQUITIES RESEARCH

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This material should not be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. We are not
soliciting any action based on this material. It is for the general information of clients of Kotak Securities Limited. It does not constitute a personal recommendation or take into account the
particular investment objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, clients should consider whether it is
suitable for their particular circumstances and, if necessary, seek professional advice. The price and value of the investments referred to in this material and the income from them may go
down as well as up, and investors may realize losses on any investments. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original
capital may occur. Kotak Securities Limited does not provide tax advise to its clients, and all investors are strongly advised to consult with their tax advisers regarding any potential investment.
Certain transactions -including those involving futures, options, and other derivatives as well as non-investment-grade securities - give rise to substantial risk and are not suitable for all
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expressed are our current opinions as of the date appearing on this material only. We endeavor to update on a reasonable basis the information discussed in this material, but regulatory,
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material, may from time to time have "long" or "short" positions in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. Kotak
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Kotak Securities Limited established in 1994, is a subsidiary of Kotak Mahindra Bank Limited. Kotak Securities is one of India's largest brokerage and distribution house.
Kotak Securities Limited is a corporate trading and clearing member of Bombay Stock Exchange Limited (BSE), National Stock Exchange of India Limited (NSE), Metropolitan Stock
Exchange of India Limited (MSE), National Commodity and Derivatives Exchange (NCDEX) and Multi Commodity Exchange(MCX). Our businesses include stock broking, services rendered
in connection with distribution of primary market issues and financial products like mutual funds and fixed deposits, depository services and Portfolio Management.
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). Kotak Securities Limited
is also registered with Insurance Regulatory and Development Authority as Corporate Agent for Kotak Mahindra Old Mutual Life Insurance Limited and is also a Mutual Fund Advisor
registered with Association of Mutual Funds in India (AMFI). Kotak Securities Limited is registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014.
We hereby declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered in last five years. However SEBI,
Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on KSL for certain operational
deviations. We have not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has our certificate of registration been cancelled by SEBI at any point
of time.
We offer our research services to primarily institutional investors and their employees, directors, fund managers, advisors who are registered with us
Details of Associates are available on website i.e. www.kotak.com
Research Analyst has served as an officer, director or employee of subject company(ies): No
We or our associates may have received compensation from the subject company(ies) in the past 12 months.
We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past 12 months. YES. Visit our website for more details
We or our associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company(ies) in the past 12 months. We or our
associates may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company(ies) in the
past 12 months. We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report.
Our associates may have financial interest in the subject company(ies).
Research Analyst or his/her relative's financial interest in the subject company(ies): No
Kotak Securities Limited has financial interest in the subject company(ies) at the end of the month immediately preceding the date of publication of Research Report: Sun Pharmaceuticals
- YES
Nature of Financial interest: Holding equity shares or derivatives of the subject company.
Our associates may have actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of publication of
Research Report.
Research Analyst or his/her relatives has actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of
publication of Research Report: No
Kotak Securities Limited has actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of publication of
Research Report: No
Subject company(ies) may have been client during twelve months preceding the date of distribution of the research report.
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(Choose a company from the list on the browser and select the"three years" icon in the price chart).
Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051, Telephone No.: +22
43360000, Fax No.: +22 67132430. Website: www.kotak.com / www.kotaksecurities.com. Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg,
Malad (East), Mumbai 400097. Telephone No: 42856825. SEBI Registration No. INZ000200137(Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024;
MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97. Compliance Officer Details: Mr. Manoj Agarwal.
Call: 022 - 4285 8484, or Email: ks.compliance@kotak.com. Investments in securities market are subject to market risks, read all the related documents carefully before investing.
In case you require any clarification or have any concern, kindly write to us at below email ids:
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Toll free numbers 18002099191 / 1860 266 9191
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still unheard, write to our customer service HOD at ks.servicehead@kotak.com or call us on 022-42858208.
Level 3: If you still have not received a satisfactory response at Level 2 within 3 working days, you may contact our Compliance Officer (Name: Mr. Manoj Agarwal) at
ks.compliance@kotak.com or call on 91- (022) 4285 8484.
Level 4 : If you have not received a satisfactory response at Level 3 within 7 working days, you may also approach Managing Director / CEO (Mr. Jaideep Hansraj) at ceo.ks@kotak.com or
call on 91-(022) 4285 8301.
First Cut notes published on this site are for information purposes only. They represent early notations and responses by analysts to recent events. Data in the notes may not have been
verified by us and investors should not act upon any data or views in these notes. Most First Cut notes, but not necessarily all, will be followed by final research reports on the subject.
There could be variance between the First cut note and the final research note on any subject, in which case the contents of the final research note would prevail. We accept no liability
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