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  • Stock Recommendation | Zee Entertainment Enterprises - REDUCE - Target price : Rs 430

    Publish date: OCTOBER 11, 2018

    Odds mount. We downgrade Zee to REDUCE from ADD as (1) we expect a shift in ad spends to OTT from TV in the next 3-4 years, (2) competition in the OTT space is more ferocious than anticipated and it may be difficult for Zee to maintain its fair share in OTT market. We cut PE multiple to capture the medium-term risk to TV business and uncertainties in OTT. We now value Zee at 21X Sep-20E earnings (19X for core business and 2X for optionality that ZEE5 offers) versus 28X earlier; revise TP to ₹430 (₹600).

    The interest and investments of global companies in India’s OTT space are overwhelming and perhaps disproportionate relative to the monetization opportunity. At an industry level, we expect aggregate cash spends of ₹12-15 bn on digital video content (entertainment excl. sports and movies) over the next 18 months versus ₹70-75 bn/year on TV. Given this, we expect (1) talent scarcity and content cost inflation, (2) Netflix, Amazon and Jio may outspend others in content procurement, and (3) either digital subscription revenue picks up meaningfully to justify these investments (looks difficult) or else OTT players (including Netflix and/or Prime) opt for the advertising-led model, accelerating a shift of ad spends to OTT from TV.
    Three key attributes for success in OTT are (1) content, (2) product/technology and (3) capital. ZEE5 scores well on #1 but scores low on #2 and #3 relative to the competition. Further, Zee’s margin guidance compels it to invest judiciously. Meanwhile, less constrained peers are taking the long view, outspending Zee thanks to monetization avenues in associated businesses (telecom/ecommerce/global viewer base). Zee’s core strengths are (1) ability to produce content with cost efficiency and scale, and (2) strong audience-connect in the large Hindi-speaking and regional markets. We believe ZEE5 could better capitalize on these strengths and somewhat insulate itself from the irrational competition scenario if it found a JV partner with complementary attributes. Obvious names that come to mind are Flipkart, Hotstar, Airtel, Chinese internet players and AT&T-TWC.
    Zee’s historical premium valuation was predicated upon solid execution and sustained growth opportunities. Even as the core business performance is flawless, we turn cautious as (1) we expect OTT to start gaining ad revenue share from TV in 3-4 years, (2) the digital video ecosystem is crowded with heavyweights, and (3) ZEE5’s progress is short of our expectations and the aggression demanded by the competitive landscape. We incorporate 2Q and tweak our earnings to model higher investments in ZEE5. We cut TP to ₹430 (₹600 earlier), valuing it at 21X Sep-20E earnings (19X for core + 2X for optionality of ZEE5; 28X earlier). Despite limited downside after the recent correction in the stock price, we recommend REDUCE and prefer to stay on the sidelines until we see creditable progress in ZEE5 and/or any favorable change in the competitive landscape. Please refer to page 11 for 2Q results analysis and key takeaways.

    Competitive intensity higher than anticipated. The interest and investments of global players in the Indian OTT space are overwhelming and perhaps disproportionate relative to the monetization opportunity. Our earlier assessment was that Netflix and Amazon Prime will cater to the top 5-10%, leaving rest of the market for local players. The underlying hypothesis was that subscription opportunity in India is too small for these behemoths to focus. However, we note the following.
    Netflix and Amazon Prime video. Netflix’s spends on ‘Sacred Games’ were unprecedented in the Indian context and it is likely to step up investments in CY2019. We would not be surprised if it ramps up to produce two shows/month in India by mid-CY2019. Prime video is on a movie-buying spree in India (Exhibit 1) and paying top dollar. Additionally, it is also churning out originals at regular intervals. Clearly, Netflix and Prime have aspirations to cater to the broader market and not just a niche audience. We would not be surprised if they experiment with AVOD at some point or Netflix halves subscription price to become a broad-based product from a premium product.
    Jio and Hotstar. Jio is a savvy negotiator in B2B deals. Its bargaining power as a distributor will increase further as it forays in the fixed-line broadband and Pay-TV distribution. Separately, Jio is also augmenting content capabilities (24.9% stake purchase in Balaji Telefilms and 5% stake in Eros and operating control in Viacom18). We gather that Hotstar may resume its investments in originals soon encouraged by its success in sports (IPL).
    YouTube and Facebook. YouTube India has just begun original shows and Facebook may do so sooner than later. Both these companies have daily active user (DAU) base of about 200 mn, impressive engagement metrics and sizeable digital video ad revenue stream growing at 40-50%+ annually. Investments in content would further strengthen their positioning in the AVOD space.
    We see a possibility of elevated content investments disproportionate to OTT opportunity size (as we foresee today), by a number of players with deep pockets.
    Unstoppable traction in digital video consumption. We gather that aggregate videowatch time is growing in the vicinity of 100% yoy for players who are doing well. More importantly, MAUs, DAUs and engagement metrics are all trending in the right direction and ahead of expectations. Consumption trends may change faster than expectations, especially if the ecosystem evolution continues (fixed-line broadband proliferation and 5G implementation in the next 3-5 years).
    ZEE5 - ZEE5 app has been conceptualized and designed well keeping in mind nuances of Indian viewers and ecosystem constraints. However, the pace of implementation lags expectations and makes us wonder if ZEE5 has the right set of technology partners to compete against heavyweights. Separately, it looks like Prime video is gearing up to become a key destination for Indian films, a positioning that ZEE5 was eyeing.
    In a nutshell, Zee’s fortunes are not only dependent on ZEE5’s execution but also on strategy and execution of its heavyweight competition. Zee’s core strength is its understanding of the Indian mass market and ability to cost-efficiently produce content at scale. Even as this is an important competitive edge, it may not be sufficient in an irrational competitive environment. Zee’s listed status does not allow it the luxury of making huge investments akin its unlisted or pseudo-unlisted competitors.

    Our thoughts on Zee's movie strategy
    Zee stepped up investments in movies starting FY2017 after exiting sports broadcasting— largely towards purchase/advance for satellite rights of movies plus partly for purchase/advance of digital rights and partly towards w-cap for the movie production business. Over the past two years (FY2017-18), Zee has invested (cash outgo) about ₹22-25 bn in movies, much higher than previous years (annual run-rate was about ₹4-5 bn over FY2013-16). These investments were made with an objective to further strengthen its positioning in the movie genre on TV and to position ZEE5 as a key digital destination for Indian language films.
    We see two risks to this strategy-
    Amazon Prime video has spoilt the movie rights market. Our industry interactions suggest that Prime Video is on a movie-buying spree and paying top dollar for digital rights. We note that it has 54% share in top-25 Hindi movies released in the past 12 months (Exhibit 2). More importantly, it looks like Prime video’s recent buys are all exclusive rights for which it may have paid a huge premium; this corroborates with what we are hearing from industry participants. This has resulted in irrational inflation in cost of digital rights of movies. We believe this inflation can upset Zee’s strategy and compel it to either increase budget or buy fewer films than planned earlier.
    Hindi movie genre on TV looks susceptible to disruption from OTT. Our analysis of viewership composition of genres indicates that paid Hindi movie genre could be more vulnerable to disruption from OTT as compared to other sub-genres within the Hindi and regional entertainment space. We note that higher share of (1) male viewers, (2) NCCS A+B, (3) under-40 age group and (4) urban audience, makes a genre more vulnerable to shift of consumption to OTT. Further, theatrical window for digital release of a film is eight weeks whereas that for TV release is 12 weeks.
    As of now, most of the popular movies are behind the pay-wall and ad-free. Thus, there is no visible risk to ad spends garnered by the movie genre on TV. However, at some point if OTT platforms open up for advertising on blockbuster movies, it can lead to some shift of ad spends to OTT from TV. Subsequently, it can result in deflationary pressure on ad yields of movie channels and price of satellite rights. It is worth noting that price paid for satellite rights of movies is based on revenue potential estimated over five years (life of movie rights) and it assumes sustained growth in ad yield and consumption. Any change on the latter can deteriorate RoIs of movie rights purchased in the past.
    We note that Zee management has indicated moderation in movie capex in FY2019, essentially normalization following significant investments over the past two years. That said, it could also be due to inflation in purchase in digital rights of movies.

    Opportunities and optionality
    Nuances of Indian video ecosystem that favour local broadcasters
    Even as broadcasters globally have struggled to compete against Netflix, there are a number of nuances (detailed below) of Indian market that gives Indian broadcasters a better chance against next-gen media companies.
    Low Pay-TV ARPU and lack of price arbitrage. A key reason for early success of Netflix in most countries was the price arbitrage between cable TV bundle (US$80/month in US) and Netflix streaming membership (US$11/month). The dynamics are completely opposite in India and should work in favor of TV.
    Demographic and linguistic diversity. An average Indian family’s size is 4.25 individuals per household; Pay-TV bundle fulfills diverse content preferences of a household at a nominal price of `250-300/month (about `1/channel). We note that English accounts for less than 5% of content consumption on TV. Rest of the consumption is in Hindi, six popular regional languages and a few other smaller regional languages. In addition, content preferences vary significantly across the socioeconomic strata. It isn’t easy for a new entrant to disrupt the TV market or alter viewing preferences of audience so easily.
    Learning from mistakes of global players. As it is well-known, the biggest mistake US TV networks made was to license TV content to Netflix and that too long-term contracts that were not structured favorably. This shortsightedness and short-term profiteering of US broadcasters helped Netflix establish itself. Another mistake was not picking up the change in consumption patterns and not investing in their own OTT platforms on time. For example, Viacom’s content and viewer base was heavily skewed towards youth and yet it didn’t invest in OTT platform and instead used surplus cash for buybacks. We believe Indian broadcasters are unlikely to make these mistakes.
    That said, we do note that broadcasters (including Zee) are occasionally selling rights of select content other OTT platforms. For instance, Zee has licensed rights of a popular show of &TV to Netflix. It recently sold digital rights of its co-produced Hindi movie, ‘ Dhadak’ to Amazon prime video.
    Early investment and focus on digital relative to global peers. Even as OTT is still in its early days in India, several Indian broadcasters have invested in their own OTT platforms. Hotstar stands out at a global level in terms of its ability to handle large volumes of live-sports streaming.
    Other nuances of ecosystem. Even as the digital ecosystem is rapidly evolving, India significantly lags other nations on a few parameters that are essential for widespread consumption of OTT—(1) fixed-lined broadband penetration, (2) small share of LCD TV sets/smart TVs that enable streaming on large screen and (3) low penetration of smartphone. These nuances would allow OTT players some time to get their act together. While the above factors give local Indian broadcasters better chance to compete against the global players, we expect it to be partly offset by high competitive intensity. India is one of the few markets that is attracting serious competition from all quarters—Netflix to Jio to Youtube.
    Key inherent strengths of Zee for OTT
    Content library. Zee has a vast content library (about 250,000 hours as per FY2018 annual report). The management has indicated that its movie library has 4,100 titles that include about 3,000 dual rights (satellite + digital).
    Exposure to genres and markets that are less susceptible to disruption from OTT.
    Zee network has no/negligible exposure to genres such as sports, kids, music and English that are highly vulnerable to TV-to-OTT consumption shift. Contrarily, about 43% of Zee’s viewership comes from regional genres that relatively more immune to digital. It essentially makes Zee less vulnerable to TV-to-OTT shift as compared to its broadcasting peers, at least in the near term.
    Opportunities to consolidate its position in TV. Zee’s network viewership share has steadily increased over the past few years. It is about 19-20% at present as compared to 16-17% two years ago. Zee’ viewership share gain has been largely driven by regional markets. Zee has opportunity to further strengthen its market share, especially so as there is a possibility that its competition in the TV space may lose some focus from TV in the event of a TV-to-OTT shift.
    What can Zee do to de-risk ZEE5 from intense/irrational competition?
    We continue to believe that Zee has ingredients to be successful in the OTT space and emerge as a key OTT destination for Indian-language entertainment content for the massmarket audience. However, for this to play out, competitive intensity has to be benign. Increasingly we fear that competitive intensity could adversely change the dynamics for Zee. For instance, price of digital rights of movies is much higher than anticipated earlier, compelling Zee to increase its movie-buying budget or settle for fewer movies. We consider a few more scenarios that could play out. Essentially, what if—
    Hotstar raises funding and steps up investments in original content. At present, Hotstar’s investments (and cash burn) in sports make it difficult for it to adequately invest in original non-sports entertainment content. With none of the other broadcasters making serious investments in original entertainment content, there is an opportunity for ZEE5 to emerge as a #1 OTT on the back of its TV library and digital originals. However, this scenario can change if (1) Hotstar raises PE funding that allows it to step up investments in digital originals shows and/or (2) Hotstar gets a mandate from its new parent, Walt Disney, to invest more and especially in original content. In this case, ZEE5 will be compelled to further step up investments.
    Jio’s content and consolidation strategy. Jio has acquired minority stakes in Eros and Balaji and RIL owns TV18 group. At a consolidated level, RIL has decent content capabilities. It can further strengthen its content capabilities if it participates in a few more consolidation opportunities. In this case, Jio becomes a strong force from the content perspective.
    Strategy of other broadcasters. At present, most Indian broadcasters have refrained from licensing its content to Netflix and Amazon. However, one cannot rule out a scenario whereby some of the smaller/fragmented players license content/movie library rights to global OTTs or Jio. This can hurt Zee’s prospects.
    Thus, there are number of scenarios that can alter ZEE5’s prospects and compel the management to keep changing its strategy/investment plan depending on the competitive landscape. In our view, ZEE5 would be better-placed if it operates like a startup, has solid product/technology capabilities and excess supply of capital. This can be achieved if Zee considers a JV partnership or raises strategic investment. We detail our thoughts below
    JV partnership with Flipkart/Airtel. Flipkart’s key competitor, Amazon, and future competitor, Jio’s ecommerce arm, have luxury of bundling OTT services along with prime membership. At present, Flipkart has a loyalty program that allows its customers to use reward points to consume content on platforms such as Hotstar. We believe that any partnership of ZEE5 and Flipkart could be a win-win for both the companies in view of complementary attributes. Likewise, Airtel and ZEE5 can also consider a more strategic partnership beyond the extant B2B digital content deals.
    Hulu-like model with Hotstar. We believe Indian broadcasters would be best-placed to capitalize on opportunities that OTT has to offer if they were to co-own and operate a single platform (concept akin Hulu). We do note that Hulu’s success has been suboptimal so far due to varying priorities of its stakeholders. With the benefit of hindsight, Indian broadcasters can avoid mistakes made by the stakeholders of Hulu. If Zee and Star come together for OTT, its combined OTT platform can dominate the Indian OTT market. We note that both these companies have collaborated in the past (MediaPro distribution JV) and immensely benefited from it. Such an arrangement in OTT looks difficult as of now given (1) ongoing Fox-Disney merger and (2) Hotstar has made huge investments and established itself to some extent; it may prefer to stay solo.
    Strategic investments from PE or preferably Chinese internet players/AT&T-TWC.
    We believe ZEE5 can be a key local partner or OTT investment opportunity for a private equity firm or Chinese internet players interested in Indian OTT space. Although early days, we do note that Indian movies are gaining popularity in Chinese market. Given this, we would not be surprised if any of the Chinese tech firms invest in Indian OTT space. If any of the above three scenarios play out, it would strengthen ZEE5’s ability to compete and result in re-rating. We partially bake in this optionality by ascribing additional 2X PE multiple over our target PE multiple of 20X for the broadcasting business.
    Core broadcasting business on a strong footing, thanks to impressive and consistent execution
    Zee’s execution in the core broadcasting business continues to be impressive and consistent.
    Strong outperformance in ad revenue growth to continue-it is worth noting that Zee has surpassed Star to become #1 network in terms of viewership for the first time in 2QFY19 (Exhibit 4). We track weighted viewership share (Exhibit 5), which is a lead indicator of ad growth performance versus industry; it continues to trend in the right direction. We expect Zee to continue to deliver solid growth in advertising revenues for the next few quarters driven by buoyancy in the TV advertising environment and benefits of viewership share gains. We note that ad growth over the past four quarters was 20%+ yoy and we estimate 18.7% and 16.5% growth in ad revenues in FY2019E and FY2020E.
    Steady growth in domestic subscription revenues-Zee expects better growth trajectory for domestic subscription revenues in FY2019 (KIE 15%) as monetization benefits of phase-III digitization resume; it had not fully accrued due to pending implementation of tariff order. Additionally, Zee has gained network viewership share that helps in negotiations/renewals. We do note that Zee has renewed its digital content deal with Reliance Jio.

    Our thoughts on profitability
    We are not worried about profitability of the core broadcasting business given viewership trends and tailwinds on advertising and domestic subscription revenue front. Underlying EBITDA margin of core TV broadcasting business is 35-37% as visible in 2QFY19 results. Zee’s guidance of 30% EBITDA margin allows it to absorb EBITDA margin loss of 400 bps in ZEE5 (or absolute EBITDA loss of ₹3 bn or so). Assuming ZEE5’s revenue of about ₹1.2 bn in FY2019E, it allows the company to invest ₹4.2 bn in the digital platform (FY2019E). We note that this ~₹4 bn investment (operational costs of ZEE5) would be incremental to investments made in the traditional business. For instance, it does not include transfer pricing cost of TV content library of Zee Network. SG&A does not include allocation of corporate overheads. Marketing and promotional expense is also incremental to existing budget of ₹5-6 bn of the broadcasting business. Zee can always shift marketing expense from traditional medium to ZEE5, if needed.

    ▶ Ad revenues grew 22.7% yoy aided by low base and viewership share gains (2-yr CAGR at 12.3%). As per our estimate, outperformance over industry could be about 500-700 bps largely attributable to market share gains.
    ▶ Domestic subscription revenue growth at 26% yoy was (KIE 17.5%) was partly aided by catch-up revenues and benefits of phase III digitization. Zee management has raised full year domestic subscription revenue growth guidance to mid-teens from low-teens growth rate.
    ▶ EBITDA at Rs6.75 bn (+38% yoy) was 13% above our estimates led by higher than estimated domestic subscription revenues and syndicate sales. We note that base quarter EBITDA was impacted by one-time costs pertaining to corporate re-branding. 2QFY19 EBITDA is after factoring ZEE5 loses. EBITDA margin of 34.2% was up 320 bps yoy and best our estimates by 240 bps.
    ▶ Adjusted net profit was 6% above our estimates on account of higher taxes (ETR of 40.5%).
    Balance sheet improvement not up to expectations and guidance
    On 1QFY19 earnings conference call, Zee’s management acknowledged the feedback of minority investors around surplus cash invested in overseas funds. The management had indicated that surplus cash including investments in overseas funds would be brought back to India in due course of time and switching to low-risk liquid funds from high-yield securities starting 2QFY19. Given this, we were hopeful of some repatriation of surplus cash parked in overseas funds to India especially in view of sharp depreciation of rupee. However, there was no change in treasury management in 2Q. The management reiterated its intent to bring back surplus cash to India in due course in a calibrated manner. On the positive side, Zee management indicated that it expects to recover its investment in SGGD sometime in this month; it expects IRR of 11% on this investment as against original IRR of 17%.
    Inventory was broadly flat at Rs27.1 bn in the first half of FY2019. Other current assets increase to Rs13.8 bn from Rs10.2 bn in the first six months. The management attributed it to advances paid for movies and other content acquired for ZEE5. Zee management hinted at moderation of investments in movies in FY2019 as compared to FY2018. This potentially implies better cash generation in FY2019.
    ZEE5—headline MAU encouraging but we would wait for additional disclosures and for data to stabilize
    Zee management indicated that ZEE5 garnered MAUs of 41.3 mn in the month of September to become #2 digital entertainment platform as per Google analytics data. Its engagement metric was average daily time spent of 31 mins. Although these numbers are encouraging, we would wait for data to stabilize and for ZEE5 to share additional metrics such as DAUs, paid subscribers and daily video viewers used to derive average time spent. Further, we prefer disclosure of ZEE5 metrics as per App Annie, the most widely-used app analytics/database in the OTT space. Even better if Zee discloses metrics of competition as per App Annie allowing analyst/investors to better assess ZEE5’s positioning in competitive landscape. We present key metrics of OTT players in exhibit 9.
    We note that Zee management has indicated pick up in digital content production. It has launched about 29 shows of original content so far (less than 100 hours) and it plans to launch another 60 shows over the next 6-9 months. This target looks a bit aggressive to us. Separately, the management indicated that it intends to release 600 hours of original content (including re-cap part; first few mins of an episode) over the next 18 months. This target also looks fairly stretched to us.
    Renewal content deal with Jio
    We note that Zee had pulled out its content from JioTV in August 2018 as negotiations failed. This content deal has been renewed. There are two parts to this deal (1) Live TV. All 37 channels of Zee network would be available on Jio TV. Jio Prime users will have free access to this content through JioTV app and Reliance Jio would pay a certain amount to Zee for this content. In this case, the content consumption happens on Jio TV app but Zee would get consumption data/metrics from JioTV, (2) Original/premium content— The above deal does not cover premium/original content available on ZEE5. Jio subscribers would have to pay for this content. This is an app-in-app deal.

    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.

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    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

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