Zero maintenance charges
Zero fees for demat account opening
Volume based brokerage

Stock Recommendation | UltraTech Cement - SELL - Target price : 2,760

Publish date: OCTOBER 22, 2018

High hopes versus grounded real(i)ty. UltraTech’s 2QFY19 earnings missed our estimate due to subdued realizations and higher costs. The company’s 1HFY19 EBITDA was flat yoy despite 26% yoy volume growth (aided by ramp-up of acquired capacity) due to 21% yoy decline in EBITDA/ton. Low industry utilization, large capacity additions and continued weakness in the real estate market can restrict material improvement in earnings over the next 1-2 years. Stock valuation at 16X/13X FY2019E/20E EBITDA is expensive, especially on the back of optimistic earnings estimates. We cut our estimates by 7-18% and revise TP to Rs2,760 (Rs2,950 earlier). Maintain SELL.

2QFY19 earnings —weak due to increase in energy costs, muted realizations

UltraTech’s earnings were below our estimates—the company reported revenues of Rs78.6 bn (+20% yoy, -9% qoq), EBITDA of Rs12.9 bn (-4% yoy, -20% qoq) and net-income of Rs3.9 bn (-9% yoy, -35% qoq), against our estimate of Rs78.3 bn, Rs14.4 bn and Rs4.8 bn, respectively. Cement volumes increased 20% yoy to 15.7 mn tons led by ramp-up of acquired assets of Jaiprakash—we note that last year (in 2QFY18), the company had just completed the acquisition of these assets which were operating at low utilization rates. EBITDA/ton was lowerthan- our-estimate and declined by 11% qoq to Rs824/ton (-20% yoy) due to subdued realization (+1% qoq) and rising cost pressures—total costs increased by 4% qoq to Rs4,180/ton (+5% yoy) due to an increase in energy costs (+7% qoq to Rs1,099/ton) and other costs (+20% qoq to Rs672/ton).

High hopes versus actual earnings—expect another year of disappointment

The consensus earnings estimate for FY2019E has been revised downwards by 21% over the past year—we expect another round of downgrades post 2Q/3QFY19 results; we have cut our FY2019E EBITDA estimate by 7% and EPS by 18% after 2QFY19 results. Cement prices in October 2018 were weak in most of the regions—all-India prices in are down by Rs5/bag qoq (- 2%) in October 2018 versus 2QFY19. While realizations are expected to be weak again (unless we see material price rise in November 2018), we expect costs to remain high in 3QFY19 due to lower INR/US$ (which will affect Fx related costs), imposition of busy season surcharge from the railways, etc. We also highlight that strong volume growth reported by companies in 1HFY19 is largely on the back of a low base, which will moderate from November 2018.

Low industry utilizations, large new capacities to restrict earnings improvement; Maintain SELL

We believe >78-80% industry utilization in commodities business is a must for meaningful improvement in industry profitability—or else high competitive intensity between firms will continue to depress operating margins. Given large capacity addition by domestic cement companies, we estimate industry utilization to remain close to 70% over the next two years. We cut our FY2019-20E EBITDA estimate by 2-7% and earnings by 7-18%. This results in a cut in our TP to Rs2,760 (from Rs2,950 earlier) as we value the stock at 10X March 2020E EBITDA. The stock is expensive at 16X/13X FY2019E/20E EBITDA and 35X/24X earnings.

Exhibit

Changes in our estimates
Exhibit 8 highlights key changes in our estimates.
We raise our cost estimates for energy costs, other expenses which results in 3-8% cut in our EBITDA/ton—we estimate EBITDA/ton of Rs938, Rs1,073 and Rs1,159 for FY2019E, FY2020E and FY2021E. This results in 2-7% cut in our EBITDA estimate to Rs66.4 bn, Rs81 bn and Rs93.4 bn for FY2019E, FY2020E and FY2021E. We reduce our EPS estimates by 7- 18% to Rs103.2, Rs147.7 and Rs187.3 for FY2019E, FY2020E and FY2021E.
Our fair value of Rs2,760/share is based on 10X March 2020E EBITDA.
Key highlights from 2QFY19 results
▶ Volumes—strong growth led by ramp-up of acquired assets. UltraTech’s domestic sales volumes increased by 21% yoy to 15.1 mn tons while export sales were flat yoy at 0.7 mn tons—total India volumes increased 20% yoy to 15.7 mn tons. We highlight that strong growth in volumes was led by ramp-up of acquired assets from Jaiprakash as plant utilization rates of these assets were very low in 2QFY18 after UltraTech completed acquisition in June 2017.
▶ The management highlighted that infrastructure development remains a key growth driver for cement volumes in CY2018 while there is also a pick-up in low cost housing and rural housing. The average industry capacity utilization is close to 70% now though utilization in 2QFY19 was only 65%, it being a seasonally weak period for cement offtake.
▶ Realizations increase by 1% qoq. UltraTech’s blended realizations increased by 1% qoq to Rs5,004/ton (flat yoy) in 2QFY19. As per the company, average cement prices were up 1% qoq in 2QFY19 led by ~3% increase in North, Central and South markets and marginal increase in East (~1% qoq). Cement prices declined by 2% qoq in West region.
Our channel checks indicated all-India retail cement prices increased by Rs3/bag (+1%) in 2QFY19 led by higher prices in North, Central and East markets. Per our checks, October 2018 cement prices are down by Rs5/bag or 2% qoq (Exhibit 5).
▶ Operating margin decline due to higher costs. UltraTech’s EBITDA/ton declined 11% qoq at Rs824/ton (-20% yoy, KIE: Rs916/ton) due to muted realizations and higher costs. During the quarter, overall cost/ton increased 4% qoq to Rs4,180/ton (+5% yoy)—cost increases were due to:
▫ Increase in energy costs by 7% qoq to Rs1,099/ton (+19% yoy). The company highlighted energy cost increase had an impact of ~3% due to INR/US$ depreciation, and higher consumption norms due to plant maintenance in the quarter (+2%).
▫ Increase in other expenses by 20% qoq to Rs672/ton (flat yoy). Other expenses increased due to the impact of an annual maintenance shutdown (+18%) as close to 60% of kiln capacity was shut for maintenance. The adverse operating leverage also impacted other expenses, on per unit basis.
▫ Net-debt increases by Rs5 bn due to higher working capital. Standalone net-debt increased to Rs125 bn in September 2018 from Rs120 bn in March 2018, due to an increase in working capital (+Rs15 bn) from inventory accumulation in the monsoon season. UltraTech’s leverage will increase if it acquires assets of Binani Cements and also completes the acquisition of Century Textiles. Management expects leverage to decline from 1QFY20 onwards.
Other highlights from the earnings call
▫ Acquisition of Binani Cement. Management highlighted that the case hearing pertaining to Binani Cement is complete and the order is reserved. The delay in the order is due to ongoing vacations at the court. Once court resumes over next week, the order can be passed as early as within 15 days.
▫ Update on new projects. The company has not yet started work on the Pali cement project in Rajasthan as it awaits the final order on the Binani assets that it intends to acquire. The company believes that the incremental capital benefit of a brownfield expansion is higher than the greenfield projects. We note that UltraTech’s board had earlier approved setting up of a 3.5 mtpa integrated plant in Pali, Rajasthan for an investment of Rs18.5 bn which was expected to be commissioned by June 2020.
The 4 mtpa cement plant in Bara, Uttar Pradesh is expected to be commissioned in June 2019 with a little delay on the part of contractors of the project.
▫ Revised axle load norms aided costs. Management stated that some benefit has started accruing from the increase in axle load norms. The movement through roads is high at 75%. Lead distance also declined by 4% qoq (-5% yoy) which aided 4% qoq decline in logistics costs despite the increase in diesel prices (+1% qoq).
▫ Regional plant utilization—highest in East, North. Among regions, the company’s plant utilizations are highest in the North (75 to 80%), East (80 to 85%) followed by South, West (65 to 70%) while Central region has plant utilization of close to 60%.
▫ Manufacturing costs to have peaked in 2QFY19, per management estimates. As per management, manufacturing costs are likely to have peaked in 2QFY19. Pet-coke prices have declined to

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

Our target prices are also on a 12-month horizon basis.

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 target price, 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 price target, if any, for this stock, because there is not a sufficient fundamental basis for determining an investment rating or target. The previous investment rating and price target, 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.

Disclosure/Disclaimer

Corporate Office

Kotak Securities Ltd.

27 BKC, Plot No. C-27, "G Block"

Bandra Kurla Complex, Bandra (E)

Mumbai 400 051, India

Tel: +91-22-43360000

Overseas Affiliates

Kotak Mahindra (UK) Ltd

8th Floor, Portsoken House

155-157 Minories

London EC3N 1LS

Tel: +44-20-7977-6900

Kotak Mahindra Inc

369 Lexington Avenue

28th Floor, New York

NY 10017, USA

Tel:+1 212 600 8856

Copyright 2018 Kotak Institutional Equities (Kotak Securities Limited). All rights reserved.

1. Note that the research analysts contributing to this report may not be registered/qualified as research analysts with FINRA; and

2. Such research analysts may not be associated persons of Kotak Mahindra Inc and therefore, may not be subject to NASD Rule 2711 restrictions on communications with a subject
company, public appearances and trading securities held by a research analyst account.

3. Any U.S. recipients of the research who wish to effect transactions in any security covered by the report should do so with or through Kotak Mahindra Inc and (ii) any transactions in
the securities covered by the research by U.S. recipients must be effected only through Kotak Mahindra Inc at vinay.goenka@kotak.com.

This report is distributed in Singapore by Kotak Mahindra (UK) Limited (Singapore Branch) to institutional investors, accredited investors or expert investors only as defined under the
Securities and Futures Act. Recipients of this analysis / report are to contact Kotak Mahindra (UK) Limited (Singapore Branch) (16 Raffles Quay, #35-02/03, Hong Leong Building, Singapore
048581) in respect of any matters arising from, or in connection with, this analysis / report. Kotak Mahindra (UK) Limited (Singapore Branch) is regulated by the Monetary Authority of
Singapore.

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). 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). We are 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/warning/deficiency 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 clients as well as our prospects.

This document is not for public distribution and has been furnished to you solely for your information and must not be reproduced or redistributed to any other person. Persons into whose possession this document may come are required to observe these restrictions.

This material is for the personal information of the authorized recipient, and we are not soliciting any action based upon it. This report is not to 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. It is for the general information of clients of Kotak Securities Ltd. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients.

We have reviewed the report, and in so far as it includes current or historical information, it is believed to be reliable though its accuracy or completeness cannot be guaranteed. Neither Kotak Securities Limited, nor any person connected with it, accepts any liability arising from the use of this document. The recipients of this material should rely on their own investigations and take their own professional advice. Price and value of the investments referred to in this material may go up or down. Past performance is not a guide for future performance. Certain transactions -including those involving futures, options and other derivatives as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. Reports based on technical analysis centers on studying charts of a stock's price movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match with a report on a company's fundamentals.

Opinions expressed are our current opinions as of the date appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.

Kotak Securities Limited has two independent equity research groups: Institutional Equities and Private Client Group. This report has been prepared by the Private Client Group. The views and opinions expressed in this document may or may not match or may be contrary with the views, estimates, rating, target price of the Institutional Equities Research Group of Kotak Securities Limited.

We and our affiliates/associates, officers, directors, and employees, Research Analyst(including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company (ies) discussed herein or act as advisor or lender / borrower to such company (ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of Research Report or at the time of public appearance. Kotak Securities Limited (KSL) may have proprietary long/short position in the above mentioned scrip(s) and therefore may be considered as interested. The views provided herein are general in nature and does not consider risk appetite or investment objective of particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with KSL. Kotak Securities Limited is also a Portfolio Manager. Portfolio Management Team (PMS) takes its investment decisions independent of the PCG research and accordingly PMS may have positions contrary to the PCG research recommendation. Kotak Securities Limited does not provide any promise or assurance of favourable view for a particular industry or sector or business group in any manner. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and take professional advice before investing.

The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.

No part of this material may be duplicated in any form and/or redistributed without Kotak Securities' prior written consent.
Details of Associates are available on 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: No

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: Yes

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.

"A graph of daily closing prices of securities is available at https://www.nseindia.com/ChartApp/install/charts/mainpage.jsp and http://economictimes.indiatimes.com/markets/stocks/stock-quotes. (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: NSE INB/INF/INE 230808130, BSE INB 010808153/INF 011133230, MSE INE 260808130/INB 260808135/INF 260808135, AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97. Our research should not be considered as an advertisement or advice, professional or otherwise. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and the like and take professional advice before investing. Investments in securities market are subject to market risks, read all the related documents carefully before investing. Derivatives are a sophisticated investment device. The investor is requested to take into consideration all the risk factors before actually trading in derivative contracts. Compliance Officer Details: Mr. Manoj Agarwal. Call: 022 - 4285 8484, or Email: ks.compliance@kotak.com.

In case you require any clarification or have any concern, kindly write to us at below email ids:

● Level 1: For Trading related queries, contact our customer service at 'service.securities@kotak.com' and for demat account related queries contact us at ks.demat@kotak.com or call us on: Toll free numbers 18002099191 / 1800222299, Offline Customers - 18002099292

● Level 2: If you do not receive a satisfactory response at Level 1 within 3 working days, you may write to us at ks.escalation@kotak.com or call us on 022-42858445 and if you feel you are 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 (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 CEO (Mr. Kamlesh Rao) 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
for the contents of the First Cut Notes.
For further disclosure please view https://kie.kotak.com/kinsite/index.php

Also read

Read full report Trade now

Read latest articles

Don't have an account? Click here to open an account

Click here to go back

About Us

Margin Segment

Account Type

Mutual Fund Topics

Share Market

Upcoming Ipos

Derivatives Topics

Trading Account Trending Topics

Download Neo Trading App

CUSTOMER CARE Chat with us
77389 88888WhatsApp Chat
(Just save this number and send us "Hi" on whatsapp.)

For Customer Service, dial 1800 209 9191
Write to us at service.securities@kotak.com for Trading Account and Demat Account-related queries

Call Centre Services: All Days: 8:00 am to 6:00 pm
Chat Services: All Days: 8:00 am to 8:00 pm
Call and Trade: Mon to Fri - 8.00 am to 5.30 pm

Connect with us

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary. Attention Investors Prevent Unauthorized Transactions in your demat / trading account --> Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors. Circular No.: NSDL/POLICY/2014/0094, NSE/INSP/27436, BSE - 20140901-21

Kindly note that as per NSE circulars nos: NSE/INVG/36333 dated November 17, 2017, NSE/INVG/37765 dated May 15.2018 and BSE circular nos: 20171117-18 dated November 17, 2017, 20180515-39 dated May 15.2018, trading in securities in which unsolicited messages are being circulated is restricted. The list of such stocks are available on the website of NSE & BSE. In case of any queries, request you to kindly get in touch with Customer Service on 18002099191/9292

Kotak securities Ltd. having composite licence no.CA0268 is a Corporate Agent of Kotak Mahindra Life Insurance Company Limited and Kotak Mahindra General Insurance Company Limited. We have taken reasonable measures to protect security and confidentiality of the Customer information.

The Stock Exchange, Mumbai is not in any manner answerable, responsible or liable to any person or persons for any acts of omission or commission, errors, mistakes and/or violation, actual or perceived, by us or our partners, agents, associates etc., of any of the Rules, Regulations, Bye-laws of the Stock Exchange, Mumbai, SEBI Act or any other laws in force from time to time.
The Stock Exchange, Mumbai is not answerable, responsible or liable for any information on this Website or for any services rendered by our employees, our servants, and us.

Please do not share your online trading password with anyone as this could weaken the security of your account and lead to unauthorized trades or losses. This cautionary note is as per Exchange circular dated 15th May, 2020.

Note: With a view to providing visibility of client-wise collateral as per SEBI regulations, respective clearing corporations have provided a web portal facility to allow clients to view their disaggregated collateral placed with Member and as reported by Trading Member/Clearing Member. For further information refer circulars: NCL ; NCCL

NSDL and CDSL have mapped Unique Client Codes (UCC) to demat accounts based on PAN, refer NSDL and CDSL circulars. Format for linking/delinking the UCC: NSDL: link | CDSL: link.

Clients are required to keep all their account related information up-to-date including details like email id, mobile number, address, bank details, demat details, income details etc. which will help the client to timely receive any information and to avail the various facilities relating to the Trading and Demat account. To update the details, client may get in touch with our designated customer service desk or approach the branch for assistance.

Introduction of Legal Entity Identifier(LEI) for Large Value Transactions: LEI is a 20-digit number used to uniquely identify parties to financial transactions worldwide. RBI has now decided to introduce the LEI system for all payment transactions of value ₹50 crore and above undertaken by entities (non-individuals) using Centralised Payment Systems viz. Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT). Such clients are required to provide the LEI number to us for updating it at KSL to avoid any disruptions in future payment when the threshold reaches to 50 crore and above. You may refer to the circular RBI NOTIFICATION. In case of any queries, get in touch with our designated customer service desk.

Investor Awareness regarding the revised guidelines on margin collection:-
Attention Investors :
1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020, notice no. 20200731-7 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020, notice no. 20200831-45 dated August 31, 2020 and other guidelines issued from time to time in this regard.
5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.
.......... Issued in the interest of Investors

Clients are hereby cautioned not to rely on unsolicited stock tips / investment advice circulated through bulk SMS, websites and social media platforms. Kindly exercise appropriate due diligence before dealing in the securities market.

Requirement of obtaining consent through OTP has been waived for off market transfer reason code “Implementation of Government / Regulatory Direction / Orders” Consent through OTP would continue to be required for all other reasons for any off-market transfers. Refer NSDL circular.

Covid-19 impact to clients:-
1. Applicable to clients on whose email id contract notes and other statements get bounced or who have opted for Physical contract notes/ other statements or Digital and Physical contract notes/ other statements :Due to the nationwide lockdown, we are unable send physical contract notes and other statements. To view them, log into www.kotaksecurities.com
2. Kindly update your email id with us to receive contract notes/various statements electronically to avoid any further inconvenience.
3. We are unable to issue the running account settlement payouts through cheque due to the lockdown. We request you to update your Bank account details to facilitate direct transfer to your linked bank account. You may approach our designated customer service desk or your branch to know the Bank details updation procedure.
4. Exchange advisory: Investors are advised to exercise caution while taking investment decisions in these unpredictable times. Clients are also encouraged to keep track of the underlying physical as well as international commodity markets. Clients are advised to undertake transactions after understanding the nature of the contractual relationship into which they are entering and the extent of its exposure to risk. Clients are further advised to follow sound risk management practices and not to be carried away by unfounded rumors, tips etc.

Under Interoperability, Kotak Securities has selected NSE Clearing Limited (NCL) as its designated clearing corporation for Cashand equity derivatives segment transactions and Indian Clearing Corporation Limited (ICCL) as its designated clearing corporation for currency derivatives segment transactions.

Important Update on PAN-Aadhaar linking: Kindly note that the deadline to link Aadhaar to PAN has been extended till 30th June, 2021. Read the notification here. In case of any queries, start instant Chat with our Customer Service team or WhatsApp 'Hi' on 77389 88888 or email us at kscustomer.communications@kotak.com.

Filling complaints on SCORES- Easy & Quick
a. Register on SCORES portal | b. Mandatory details for filling complaints on SCORES i. Name, PAN, Address, Mobile Number, E-mail ID | c. Benefits: i. Effective Communication ii. Speedy redressal of the grievances

© 2005 Kotak Securities Limited.
Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. Telephone No.: +22 43360000, Fax No.: +22 67132430.
Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. Telephone No: 42856825.
CIN: U99999MH1994PLC134051. SEBI Registration No: INZ000200137(Member of NSE, BSE, MSE, MCX & NCDEX), AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586.
NSDL/CDSL: IN-DP-629-2021

New To share Market?

Open Your Account Today!

Submit

Please Note

That by submitting the above mentioned details, you are authorising Kotak Securities & its sub-brokers & agents to call you and send promotional communication even though you may be registered under DNC.

Open An Account