IPO Note

Transrail Lighting Limited

Rating: Subscribe for Long term
 December 19, 2024 to December 23,
Transrail Lighting Limited is a leading Indian Engineering, IPO Date
2024
Procurement, and Construction (EPC) company specializing
Listing Date December 27, 2024
in the power transmission and distribution sector. With over
four decades of experience, the company has established itself as Face Value ₹ 2 per share
a trusted and longstanding partner, delivering turnkey solutions
globally. Price Band ₹410 to ₹432 per share

Lot Size 34 Shares

The company's operations primarily revolve around:
1. Power Transmission and Distribution 1,94,19,259 shares
Total Issue Size
2. Integrated Manufacturing Facilities (aggregating up to ₹ 838 Cr)

92,59,259 shares
The company has a strong international footprint, with projects Fresh Issue
(aggregating up to ₹ 400 Cr)
executed across 58 countries in Asia, Africa, Europe and Central
America. 1,01,60,000 shares of ₹ 2
Offer for Sale
(aggregating up to ₹ 438 Cr)

Listing At BSE, NSE

Share Holding Pre Issue 12,49,96,767 shares

Share Holding Post Issue 13,42,56,026 shares

 Investor Category Shares Offered
QIB Shares Offered Not more than 50% of the Net Issue
Retail Shares Offered Not less than 35% of the Net Issue
NII (HNI) Shares Offered Not Less than 15% of the Net Issue

Objects of the issue:

Estimated Amount from Net Proceeds and the Pre-IPO Placement
Particulars
(₹ crores)
Funding incremental working capital requirements of the Company 250
Funding capital expenditure of the Company 91
General corporate purposes *
Total *
[*] To be finalized
Transrail Lighting Limited operates as an integrated Transmission & Distribution (T&D) company, specializing in end-to-end
turnkey solutions for power infrastructure projects. The company focuses on:

1. Power Transmission and Distribution (T&D): Design, manufacturing, testing, and supply of galvanized towers, conductors,
and monopoles, along with construction and commissioning of transmission lines up to 1200 kV.
2. Rural Electrification Projects: Executing electrification projects to improve power infrastructure in underserved regions.
3. Railway Electrification: Involvement in the electrification of railway infrastructure, including the construction of sub-stations
and signaling systems.
4. Civil Infrastructure: Construction of bridges, sub-stations, and infrastructure associated with energy projects.
5. Manufacturing: Backward integrated through in-house manufacturing capabilities of:
• Transmission Towers (110,000 TPA capacity)
• Conductors (60,000 TPA capacity)
• Mono Poles
6. Tower Testing Facilities: Operates state-of-the-art tower testing facilities capable of testing up to 1200 kV.
 The details of contribution to revenue from operations by each vertical is set out below:

For the three months period ended For the Financial Year ended For the Financial Year ended For the Financial Year ended
June 30, 2024 March 31, 2024 March 31, 2023 March 31, 2022
Vertical
Revenue of Revenue of Revenue of Revenue of
% of total % of total % of total
operations % of total revenue operations operations operations
revenue of revenue of revenue of
generated (₹ of operations generated (₹ generated (₹ generated (₹
operations operations operations
Crores) Crores) Crores) Crores)
Power transmission and
746 83.18 3,361 83.83 2,407 77.98 1,536 67.24
distribution

Civil construction 104 11.6 374 9.33 332 10.75 442 19.35

Railways 19 2.17 97 2.43 176 5.71 152 6.66

Poles and lighting 27 3.05 177 4.4 172 5.56 154 6.74

Total 897 100 4,009 100 3,086 100 2,284 100

• During the three-month period ended June 30, 2024, and the Financial Year ended March 31, 2024, the company successfully secured several
prominent projects. These include the construction of transmission lines in key international markets such as Bangladesh, Tanzania,
Cameroon, and India. The following table sets forth a vertical wise summary of their Order Book as of June 30, 2024:

Confirmed Unexecuted % of the Total Order Book

Business Vertical Number of Orders
Order Book (in ₹ Crores) Value

Power transmission and distribution 69 9,251 90.58

Civil construction 5 738 7.23
Railways 5 159 1.55
Poles and lighting 77 65 0.64
Total 156 10,213 100

• In addition to domestic projects, the company also undertakes export orders that are typically financed through multilateral funding
agencies. These agencies include global organizations like the World Bank, African Development Bank, and the Asian Development
Bank, which provide financial backing for such projects. Additionally, many export orders are supported by letters of credit,
ensuring payment security and mitigating the risk of defaults.
• As of June 30, 2024, 99.99% of the total unexecuted order book is attributed to such orders, reflecting a strong and secured pipeline
for future revenue generation.
 In INR crores

Particulars June 30, 2024 March 31, 2024 March 31, 2023 March 31, 2022

Revenue from Operation (including other operating Revenue) 916 4,077 3,152 2,350

Revenue growth N.A. 29.32% 34.13% 7.53%

EBITDA 120 478 294 206
EBITDA Margin 13.12% 11.71% 9.32% 8.75%
Profit After Tax 52 233 108 65
Profit After Tax Margin 5.57% 5.65% 3.39% 2.75%
Net Debt 515 533 480 412
Debt equity ratio 0.5 0.56 0.78 0.71
Net Debt to EBITDA 4.29* 1.12 1.63 2
Return on Capital Employed 6.02%* 24.33% 18.27% 14.94%
Working capital days 83 73 53 61
Working Capital Turnover Ratio 1.10* 5.03 6.83 5.97
Vertical wise order intake 944 4,383 6,484 3,426
Geography wise order intake 944 4,383 6,484 3,426
Vertical wise order book 10,213 10,100 9,619 5,908
Geography wise order book 10,213 10,100 9,619 5,908

* Not annualized
• The power transmission and distribution system in India has witnessed significant growth over the years. The total length of
domestic transmission lines increased from 413,407 CKM in the Financial Year (FY) ended March 31, 2019, to 485,544 CKM
in the FY ended March 31, 2024.

• To support the growing power generation base, the transmission sector is expected to see cumulative investments of
approximately ₹3.00 trillion during the period FY 2025-2029.

• In the distribution segment, investments are projected to range between ₹3-4 trillion over FY 2025-2029, compared to
~₹3.3 trillion between FY 2019-2024. This anticipated growth is driven by the Indian government’s focus on the
Revamped Distribution Sector Scheme, improving access to electricity, and ensuring 24x7 power supply for all.

• Internationally, a critical lack of access to electricity in regions like Africa has spurred both public and private investments into
the deployment of new transmission and distribution networks. As of now, approximately 43% of the total population in
Africa does not have access to electricity, highlighting the urgent need for substantial investments in electrical
infrastructure across the region.

• Additionally, in Latin America and the Caribbean, power sector investments are projected to rise to meet the growing electricity
demand and modernize grid infrastructure. The focus will be on expanding and upgrading existing transmission and
distribution networks to enhance reliability and efficiency.
• India's per capita electricity consumption has shown consistent growth, rising from 1,010 kWh in fiscal 2015 to 1,331 kWh in
fiscal 2023, at a CAGR of 3.5%. Energy requirements have also grown steadily, increasing from 1,069 billion units (BUs) in
fiscal 2015 to 1,512 BUs in fiscal 2023 at a CAGR of 4.4%. Despite this progress, India’s per capita electricity
consumption remains significantly lower than other major economies such as Brazil and China. Looking ahead,
between fiscals 2024 and 2029, per capita electricity consumption is expected to grow at a 5-7% CAGR, driven by
improving access to reliable and high-quality electricity, rising per capita incomes, greater penetration of electric
vehicles (EVs) and consumer durables, railway electrification, and intensified rural electrification. These factors are
anticipated to unlock latent demand, particularly in residential areas, contributing to long-term improvements in consumption.

• India will spend nearly Rs 143 lakh crore on infrastructure in seven fiscals through 2030, more than twice the ~Rs 67 lakh
crore spent in the previous seven starting fiscal 2017. Of the total, ~Rs 36.6 lakh crore will be green investments, marking a
5x rise compared with fiscals 2017-2023. While the lion's share will be by the government, the private sector is increasingly
focusing on the energy and transportation sectors. The biggest share in green investments, of ~Rs 30.3 lakh crore, will be in
renewable energy (RE), followed by Rs 6.3 lakh crore in transportation.

• The power sector is expected to witness a total capital expenditure of Rs. 1,410,428 crore during fiscal years 2020 to
2025, funded by both the central government and state governments. For the specific projects assigned to Central
Public Sector Undertakings (CPSUs) and private players, the estimated expenditure of Rs. 953,895 crore can be
broken down as follows: Rs. 326,811 crore for electricity generation projects, Rs. 323,034 crore for electricity
distribution projects, and Rs. 304,050 crore for electricity transmission projects.
• India's electricity requirement has risen at a CAGR of ~5.0% between fiscals 2018 and 2024, while power availability rose at ~5.1%
CAGR on the back of strong capacity additions, both in the generation and transmission segments. As a result, the energy deficit
declined to 0.5% in fiscal 2023 and further reduced to 0.3% in fiscal 2024 from 0.7% in fiscal 2018.

• Power demand is closely associated with a country’s GDP. Healthy economic growth leads to growth in power demand. India is
already the fastest-growing economy in the world, with average GDP growth of 5.8% over the past decade. The trickle-down effect of
government spending on infrastructure through the National Infrastructure Pipeline, expansion of the services industry, rapid
urbanization, and increased farm income from agriculture-related reforms are key macroeconomic factors that are expected to foster
power demand. Significant policy initiatives such as 24x7 power for all, Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) scheme to provide
electricity connections to all households, green energy corridor to facilitate evacuation of RE power, green city scheme to promote the
development of sustainable and eco-friendly cities, PLI scheme and low corporate tax rates among others are expected to further support power
demand in the country.

• Apart from macroeconomic factors, power demand would be further fueled by railway electrification, upcoming metro rail projects, growing
demand for charging infrastructure due to increased adoption of electric vehicles, higher demand from key infrastructure and manufacturing
sectors.

• Power demand maintained a strong growth momentum in fiscal 2023 logging a double-digit growth of ~10% albeit a moderate base of
fiscal 2022 due to extreme seasonal vagaries, sustained buoyancy in economic activities along with robust industries activities
accelerated power demand. GDP is expected to grow at 7.3% in fiscal 2024 supporting power demand despite a higher base of 7.2% in
fiscal 2023. Despite the high base of preceding three years, CRISIL MI&A-Consulting expects power demand to grow by 5.5-6.0% in the
next five years which will be supported by infrastructure-linked capex, strong economic fundamentals along with expansion of the
power footprint via strengthening of T&D infrastructure, coupled with major reforms initiated by the GoI for improving the overall
health of the power sector, particularly that of state distribution utilities, are expected to improve the quality of power supply, thereby
propelling power demand.
The EPC industry is highly competitive, with projects awarded through competitive bidding. Companies must meet pre-
qualification criteria based on project type, value, complexity, and location. Key factors influencing client decisions
include service quality, technical expertise, past performance, safety records, and company reputation. However,
price often becomes the decisive factor in tender awards, driving intense competition. Companies must balance
competitive pricing with profitability while maintaining high operational standards and technical capabilities to secure projects
successfully.

Total Revenue EPS (Basic) EPS NAV (₹ per Profit after tax
Name of the Company P/E (₹) RoNW (%)
(₹ in Crores) (₹) (Diluted) (₹) share) (₹ Crores)

Transrail Lighting Limited 4,009 N.A. 20 20 21.68% 87 233

KEC International Limited 19,914 92 13 13 8.50% 159 347
Kalpataru Projects International Limited 19,626 37 32 32 10.00% 316 516
Skipper Limited 3,282 76 8 7 9.10% 84 82
Patel Engineering Limited 4,544 16 4 4 9.56% 38 302
Bajel Projects Limited 1,169 703 0 0 0.80% 49 4

As on March 2024
• Order Book Risk
Their Order Book is subject to various risks, including cancellations, modifications, or delays by clients, which could lead to a
significant impact on the business operations and financial results. While they secure the orders through a competitive bidding
process, the uncertainty surrounding the execution of these contracts means that there is always a possibility of project cancellations
or delays. Such occurrences could directly affect their revenue, profitability, and growth trajectory. Any such cancellations,
modifications, or delays in the Order Book would impact their future prospects, reputation, and ability to secure new contracts.

• Dependence on Government and Public Sector Projects

A substantial portion of their business is dependent on tenders and contracts floated by government authorities, public
sector undertakings, and utilities. For the three months period ended June 30, 2024, approximately 70% of the revenue was
derived from these entities, and the average revenue for the Financial Years ended March 31, 2024, March 31, 2023, and March 31,
2022, from such sources was approximately 82%. This high dependency on government and public sector entities makes their
revenue streams vulnerable to changes in government policy, delays in the release of tenders, or the absence of tenders
altogether.

• Foreign Currency Fluctuation Risks

Given their international operations and procurement activities, they are exposed to foreign currency risks, particularly
related to the import of raw materials, foreign receivables, and trade receivables associated with their international projects.
Fluctuations in exchange rates may result in adverse financial effects, leading to increased costs of imported materials and lower-
than-expected revenues from foreign projects. These currency risks could negatively affect their financial condition, cash flows, and
overall profitability, especially if exchange rate movements are unfavorable or unpredictable.
• Contingent Liabilities
They have certain contingent liabilities that, if they materialize, could result in unexpected financial outflows. Although these
liabilities are not immediately recognized on the balance sheet, they represent a potential future obligation that may require
substantial financial resources. The impact of these contingent liabilities on their results of operations, financial condition, and cash
flows could be significant, depending on the circumstances and nature of the liabilities that eventually come to fruition.

• Concentration Risk
The business is substantially dependent on revenue generated from a limited number of top clients. A significant portion of their
revenue is derived from the top one, top five, and top ten clients, and any reduction in business from these key clients could
have a material adverse effect on their financial performance. The loss of a major client or a decline in demand from these clients
could result in reduced revenues and increased volatility in their financial results.
1. One of the Largest Power Distribution Companies in the Country
• Transrail Lighting is a prominent player in the power transmission and distribution (T&D) space, a critical component of India's energy
infrastructure. The company has a strong operational track record in executing complex and large-scale projects, positioning itself as a market
leader in this segment.

2. Strong Industry Tailwinds with Government Support

• The Indian government’s focus on expanding power infrastructure under initiatives like the Revamped Distribution Sector Scheme (RDSS) and
Green Energy Corridor ensures robust demand for T&D solutions. Globally, the African and South Asian regions are witnessing significant
investments in electrification projects, creating opportunities for the company. Transrail's strategic presence in emerging economies provides
access to a vast Total Addressable Market (TAM) in India and Africa.

3. Large Outstanding Order Book of ₹10,200 Crores

• As of June 30, 2024, the company has a robust unexecuted order book of ₹10,200 crores, providing ~2.5x revenue visibility compared to FY24
revenue. The order book is well-diversified across power transmission, railways, and civil infrastructure, reducing concentration risk and ensuring
steady revenue inflow.

4. Strong Export Order Pipeline and Global Presence

• Transrail Lighting has secured high-value export projects across Bangladesh, Tanzania, Cameroon, and other African nations. Around 99.99% of
export orders are either backed by multilateral funding agencies (World Bank, ADB, AfDB) or letters of credit, ensuring payment security and
reducing financial risk. The company's ability to deliver international projects showcases its technical expertise and global competitiveness.

5. Consistent Financial Performance and Improving Margins

• Transrail has demonstrated consistent revenue growth, achieving ₹4,076.5 Crores in FY24, with an EBITDA margin of 11.71%. The company’s
focus on operational efficiency and cost management has resulted in improving profitability, with ROCE (Return on Capital Employed) increasing
from 14.94% in FY22 to 24.33% in FY24.
 Particulars Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Sales 1,881 2,172 2,284 3,144 4,074
Expenses 1,603 1,888 2,091 2,807 3,514
Operating Profit 278 284 194 337 561
OPM % 15% 13% 8% 11% 14%
Other Income 22 19 73 45 52
Interest 146 138 139 189 246
Depreciation 32 34 38 46 50
Profit before tax 121 132 90 147 316
Tax % 15% 25% 28% 28% 27%
Net Profit 102 98 65 108 233
 Particulars Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Equity Capital 4 8 23 23 25
Reserves 435 560 640 749 1,114
Borrowings 346 429 477 605 643
Long term Borrowings 132 98 118 120 81
Short term Borrowings 215 331 351 485 563
Lease Liabilities - - 7 - -
Other Borrowings - - - - -
Other Liabilities 1,253 1,185 1,702 2,069 2,838
Non controlling int - - - - -
Trade Payables 797 843 1,071 1,308 1,662
Advance from Customers - - 426 505 875
Other liability items 456 342 205 257 301
Total Liabilities 2,038 2,182 2,842 3,445 4,621

Fixed Assets 321 317 334 379 374

CWIP 11 4 17 4 6
Investments - 3 3 3 5
Other Assets 1,705 1,858 2,487 3,059 4,236
Inventories 269 232 278 311 378
Trade receivables 480 491 640 645 1,026
Cash Equivalents 81 128 111 198 224
Loans n Advances 51 39 73 214 420
Other asset items 824 968 1,386 1,691 2,187
Total Assets 2,038 2,182 2,842 3,445 4,621
 Particulars Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Cash from Operating Activity 188 65 50 143 35
Profit from operations 150 185 197 168 347
Receivables -145 -60 -599 -386 -873
Inventory -48 35 -46 -33 -67
Payables 208 0 0 331 754
Other WC items -44 -132 534 -32 -160
Working capital changes -29 -156 -112 -120 -346
Interest paid 86 81 0 104 141
Direct taxes -32 -51 -35 -14 -110
Other operating items 0 6 0 4 7
Exceptional CF items 13 0 0 0 -3
Cash from Investing Activity -50 -3 -81 -105 -78
Fixed assets purchased -12 -27 -81 -54 -29
Fixed assets sold 0 3 5 2 2
Investments purchased 0 -3 0 0 0
Investments sold 0 0 0 0 0
Interest received 4 3 3 6 13
Redemp n Canc of Shares 0 0 0 0 3
Other investing items -42 22 -8 -59 -67
Cash from Financing Activity -146 5 0 29 28
Proceeds from shares 0 0 30 0 140
Proceeds from debentures 0 27 0 1 0
Proceeds from borrowings 12 108 103 255 98
Repayment of borrowings -77 -55 -63 -119 -60
Interest paid fin -82 -74 -65 -100 -140
Financial liabilities 0 -1 -6 -8 -10
Other financing items 2 0 0 0 0
Net Cash Flow -7 66 -32 67 -15
Subscribe for Long term

December December December Share December

Issue Open Issue Close Listing
19, 2024 23, 2024 24, 2024 Allotment 27, 2024
Disclosures and Disclaimers:
This report has been prepared by Pune E- Stock Broking Limited (here in after referred to as PESB) in the capacity of a Research Analyst registered with SEBI and distributed as per SEBI (Research
Analysts) Regulations 2014. This report is prepared and distributed by Research Analysts employed by PESB for information purposes only, and neither the information contained herein, nor any
opinion expressed should be construed or deemed to be construed as solicitation or as offering advice for the purposes of the purchase or sale of any security, investment, or derivatives. The
information and opinions contained in the report were considered by PESB to be valid when published. The report also contains information provided to PESB by third parties. Whilst PESB has taken
all reasonable steps to ensure that all the information in the report is correct, PESB does not offer any warranty as to the accuracy or completeness of such information. Any person placing reliance
on the report does so entirely at his or her own risk and PESB does not accept any liability as a result. Securities markets may be subject to rapid and unexpected price movements and past
performance is not necessarily an indication of future performance. Investors must undertake independent analysis with their own legal, tax, and financial advisors and reach their own conclusions
regarding investment in securities market and should understand that. Under no circumstances can it be used or considered as an offer to sell or as a solicitation of any offer to buy or sell the
securities mentioned within it. The information contained in the research reports may have been taken from trade and statistical services and other sources, which PESB believe is reliable. PESB or
any of its group/associate/affiliate companies do not guarantee that such information is accurate or complete and it should not be relied upon as such. Any information provided in the report reflects
analysis at this date and are subject to change without notice. PESB submits that no material disciplinary action has been taken on PESB by any regulatory authority impacting Research Analysis
activities.
PESB is a Member of National Stock Exchange of India Limited (NSE), BSE Ltd (Bombay Stock Exchange), Multi Commodity Exchange of India Limited (MCX), National Commodity and Derivatives
Exchange Limited (NCDEX), and has Depository Participant affiliation with Central Depositories Services (India) Limited (CDSL). It is a SEBI registered Portfolio Manager and SEBI registered
Research Analyst [SEBI Reg. No.: INB/F/E 231079832, INB/F/E 011079838, IN-DP-32-2015, AMFI Reg. No. ARN: 173556, SEBI Research Analyst Reg. No.: INH000018197, CIN -
L67120PN2007PLC130374.
Certifications: The Research Analyst(s), Shubham Mundada, who prepared this research report hereby certifies that the views expressed in this research report accurately reflect the research
analyst's personal views about all of the subject issuers and/or securities, that the analyst(s) have no known conflict of interest and no part of the research analyst’s compensation was, is, or will be,
directly or indirectly, related to the Specific views or recommendations contained in this research report.

Additional Disclosures of Interest:

The Research Analyst, PESB, or its associates or relatives of the research analyst does not have any Financial interest in the company (ies) covered in this report.
The Research Analyst, PESB or its associates or relatives of the research analyst affiliates do not hold more than 1% of the securities of the company (ies) covered in this report as of the end of the
month immediately preceding the distribution of the research report.
The Research Analyst, his/her associate, his/her relative, and PESB, do not have any other material conflict of interest at the time of publication of this research report.
The Research Analyst, PESB, and its associates have not received compensation for brokerage Services, investment banking, merchant banking or for any other products or services from the
Company (ies) covered in this report, in the past twelve months.
The Research Analyst, PESB or as associates have not managed or co-managed, in the previous twelve months, a private or public offering of securities for the company (ies) covered in this report.
The Research Analyst, PESB or its associates have not received compensation or other benefits from the company (ies) covered in this report or from any third party, in connection with the research
report.
The Research Analyst has not served as an Officer, Director, or employee of the company (ies) covered in the Research report.
The Research Analyst and PESB has not been engaged in market making activity for the company (ies) covered in the Research report.
Suitability and Risks
Disclosures and Disclaimers:
This report has been prepared by Pune E- Stock Broking Limited (here in after referred to as PESB) in the capacity of a Research Analyst registered with SEBI and distributed as per SEBI (Research
Analysts) Regulations 2014. This report is prepared and distributed by Research Analysts employed by PESB for information purposes only, and neither the information contained herein, nor any
opinion expressed should be construed or deemed to be construed as solicitation or as offering advice for the purposes of the purchase or sale of any security, investment, or derivatives. The
information and opinions contained in the report were considered by PESB to be valid when published. The report also contains information provided to PESB by third parties. Whilst PESB has taken
all reasonable steps to ensure that all the information in the report is correct, PESB does not offer any warranty as to the accuracy or completeness of such information. Any person placing reliance
on the report does so entirely at his or her own risk and PESB does not accept any liability as a result. Securities markets may be subject to rapid and unexpected price movements and past
performance is not necessarily an indication of future performance. Investors must undertake independent analysis with their own legal, tax, and financial advisors and reach their own conclusions
regarding investment in securities market and should understand that. Under no circumstances can it be used or considered as an offer to sell or as a solicitation of any offer to buy or sell the
securities mentioned within it. The information contained in the research reports may have been taken from trade and statistical services and other sources, which PESB believe is reliable. PESB or
any of its group/associate/affiliate companies do not guarantee that such information is accurate or complete and it should not be relied upon as such. Any information provided in the report reflects
analysis at this date and are subject to change without notice. PESB submits that no material disciplinary action has been taken on PESB by any regulatory authority impacting Research Analysis
activities.
PESB is a Member of National Stock Exchange of India Limited (NSE), BSE Ltd (Bombay Stock Exchange), Multi Commodity Exchange of India Limited (MCX), National Commodity and Derivatives
Exchange Limited (NCDEX), and has Depository Participant affiliation with Central Depositories Services (India) Limited (CDSL). It is a SEBI registered Portfolio Manager and SEBI registered
Research Analyst [SEBI Reg. No.: INB/F/E 231079832, INB/F/E 011079838, IN-DP-32-2015, AMFI Reg. No. ARN: 173556, SEBI Research Analyst Reg. No.: INH000018197, CIN -
L67120PN2007PLC130374.
Certifications: The Research Analyst(s), Shubham Mundada, who prepared this research report hereby certifies that the views expressed in this research report accurately reflect the research
analyst's personal views about all of the subject issuers and/or securities, that the analyst(s) have no known conflict of interest and no part of the research analyst’s compensation was, is, or will be,
directly or indirectly, related to the Specific views or recommendations contained in this research report.

Additional Disclosures of Interest:

The Research Analyst, PESB, or its associates or relatives of the research analyst does not have any Financial interest in the company (ies) covered in this report.
The Research Analyst, PESB or its associates or relatives of the research analyst affiliates do not hold more than 1% of the securities of the company (ies) covered in this report as of the end of the
month immediately preceding the distribution of the research report.
The Research Analyst, his/her associate, his/her relative, and PESB, do not have any other material conflict of interest at the time of publication of this research report.
The Research Analyst, PESB, and its associates have not received compensation for brokerage Services, investment banking, merchant banking or for any other products or services from the
Company (ies) covered in this report, in the past twelve months.
The Research Analyst, PESB or as associates have not managed or co-managed, in the previous twelve months, a private or public offering of securities for the company (ies) covered in this report.
The Research Analyst, PESB or its associates have not received compensation or other benefits from the company (ies) covered in this report or from any third party, in connection with the research
report.
The Research Analyst has not served as an Officer, Director, or employee of the company (ies) covered in the Research report.
The Research Analyst and PESB has not been engaged in market making activity for the company (ies) covered in the Research report.
Suitability and Risks