1 September 2016
1QFY17 Results Update | Sector: Others
MCX
Buy
BSE SENSEX
28,452
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
S&P CNX
8,786
MCX IN
51.0
50.5 / 0.7
1126/726
-7/5/-10
229.0
100
CMP: INR988
TP: INR1,200 (+21% )
Profit beat on lower costs
Revenue in line, lower costs drive profit beat:
MCX’s 1QFY17 revenue at INR582.3m grew 12.5% YoY and 4.7% QoQ; and
was in line with our estimate (INR595.6m). Revenue was a function of
volumes, at INR16t, up 17.7% YoY and 7.3% QoQ.
EBITDA was INR174.4m, above our estimate of INR147m, and EBITDA
margin of 29.9% was a 520bp beat. While staff expenses were above
estimate (INR143m v/s estimate of INR111m), ad, admin and other
expenses was well below estimate at INR159m, v/s estimate of INR222m.
Adjusted PAT (excluding exceptional items) was INR328m, above our
estimate of INR295m. PAT grew 21.1% QoQ and 30.5% YoY adjusted for the
exceptional items in previous quarters.
Silver-led volume uptick:
While Gold drive the volumes in the previous
quarter, this quarter’s driver of 7% volume growth was Silver. Volumes in Silver
grew 26.6% QoQ to INR2.43t
Salary base up, await clarity on the non-staff costs:
Lower non-staff costs
during the quarter drove EBITDA beat, more than offsetting higher staff costs.
However, we await clarity on any one-off impact during the quarter and likely
trajectory of non-staff costs going forward.
Some positive developments in recent months:
News articles indicating CME's
interest to own 15% stake, if true, would bring in a formidable global player that
would drive execution excellence to keep competition at bay. Additionally, SEBI
reportedly favors the chronology of new participants followed by exchanges. This
would give MCX an opportunity to further consolidate its position. Our base case of
INR500b average daily turnover (ADT) with 25% from options yields INR40 FY18
earnings. Our price target of INR1,200 discounts FY18E earnings by 30x. BUY.
FY16
2Q
563
8.8
109
318
65
71
12.7
338
409
99
24.2
310
23.5
6.1
14.8
9.2
18.5
FY17E
2Q
600
3.1
150
277
49
124
20.6
315
439
110
25.0
329
0.4
6.5
16.3
1.7
9.6
FY16
2,135
4.8
406
986
246
498
23.3
1,191
1,689
413
24.4
1,277
2.1
25.0
56.3
8.7
FY17E
2,400
12.4
595
1,031
198
577
24.0
1,325
1,902
487
25.6
1,414
238.2
27.7
68.5
21.6
Financials & Valuations (INR b)
Y/E March
3/16A 3/17E 3/18E
Sales
2.1
2.4
3.5
EBITDA
0.6
0.7
1.6
PAT
0.4
1.4
2.1
EPS (INR)
23.4
26.2
40.0
EPS Gr. (%)
-5.0
12.1
52.7
BV/Sh. (INR)
236.1 249.3 269.7
RoE (%
3.5
10.8
15.4
RoCE (%)
8.8
10.5
15.1
Payout (%)
0.0
69.3
60.5
P/E (x)
42.4
37.8
24.8
P/BV (x)
4.2
4.0
3.7
Estimate change
TP change
Rating change
Quarterly Performance
Sales
Q-o-Q Gr. (%)
Staff Costs
Other expenses
Depreciation
EBIT
Margins (%)
Other Income
PBT bef. Exceptional items
Tax
Rate (%)
PAT
Q-o-Q Gr. (%)
EPS (INR)
Total volumes (INR t)
Q-o-Q Gr. (%)
Y-o-Y Gr. (%)
E: MOSL Estimates
1Q
518
-1.8
90
282
63
83
16.1
300
382
131
34.3
251
-49.0
4.9
13.6
-3.5
15.4
(INR Million)
Est.
1QE
596
19.6
111
337
59
88
14.7
306
393
98
25.0
295
2.6
5.8
16.0
7.3
17.7
Var.
(%/bp)
(2.2)
-267bp
28.7
(21.5)
(17.2)
42.9
678bp
16.3
22.1
54.7
667bp
11.2
11.7
3Q
498
-11.6
100
264
64
70
14.0
276
346
110
31.8
236
-24.0
3.5
13.0
-12.0
-3.3
4Q
556
11.6
106
313
54
82
14.8
278
360
72
20.1
287
21.8
5.3
14.9
14.3
5.9
1Q
582
16.9
143
265
49
125
21.5
356
480
152
31.7
328
14.1
6.5
16.0
7.3
17.7
3Q
600
0.0
150
279
49
122
20.2
322
444
111
25.0
333
1.0
6.5
17.5
7.7
34.2
4Q
618
3.0
150
291
50
126
20.4
332
459
115
25.0
344
3.4
6.7
18.8
7.1
25.8
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Ashish Chopra
(Ashish.Chopra@MotilalOswal.com); +91 22 6129 1530
Sagar Lele
(Sagar.Lele@MotilalOswal.com); +91 22 6129 1531

MCX
Valuation and view
Market leadership in winner-takes-all business:
MCX has retained its market
leadership position, with a share of 80-90% over FY09-16. Even in the most
turbulent of months during FY13-14, when the parent’s existence was in deep
waters on issues of fraud around National Spot Exchange (NSEL), the exchange
managed to retain its share. Additionally, it has remained without a fulltime MD
& CEO since May 2014 when Mr Manoj Vaish resigned after just three months.
This is a reflection of the winner-takes-all nature of the business model.
Monopoly share in multiple commodities takes care of concentration risk:
MCX’s golden run in terms of volumes came at the time of significant run-up in
gold and silver prices in FY12 and FY13. That was also perceived to be a risk,
given that the share of volumes from these two commodities had exceeded
70%. However, presence in multiple commodities helps avert the concentration
risk, and this was evidenced in FY15, when action in oil prices drove energy to
exceed gold as the largest traded commodity at MCX by value.
All eyes on reforms, as SEBI-FMC merger is complete:
SEBI’s merger with FMC
is now complete, paving the way for much awaited reforms in the ecosystem.
The upside for MCX may yet be partly a function of reports around approvals to
competition and entry of a credible global exchange materializing. We don’t
expect these at one-go or immediately, but rather in a gradual, phased manner
over the course of the next calendar year. In the interim, reports suggest that
competitive intensity may take a while, given the regulatory norms. Meanwhile,
MCX could: [1] get a head start, and [2] strengthen itself with investment from
CME.
Volume reversal to pre-CTT levels is our base case:
Our base case assumes
return to pre-commodities transaction tax (CTT) average daily turnover of
INR450b-500b by FY18. This compares with current ADT of INR200b-250b.
Multiplier effect on operational earnings from operating leverage, Buy:
Given
the fixed nature of MCX’s cost base, increase in volumes would help improve its
EBITDA margin significantly. We assume FY18 to be the first full year with at
least one key reform, with ADT returning to pre-CTT levels. We assume this to
be split equally between futures and options. That drives our EBITDA margin
estimate of 47% in FY18 and earnings estimate of INR40/share. Our price target
is INR1,200, which discounts forward earnings by 30x.
Key triggers
Introduction of new products like Options / Indices
Introduction of new participants like Banks / FIs
High volatility in key commodities like Bullion / Crude
Key risk – increased competition from equity exchanges
One of the implications of FMC’s merger with SEBI is that stock exchanges will be
able to become universal exchanges, where equities, debt instruments and
currencies are traded under the same roof as commodity derivatives. Stock
exchanges already have depositories and clearing corporations that will cater to the
needs of commodity traders as well. If NSE enters the commodities segment, MCX
could see stiff competition, which may impair both market share and profit margins
1 September 2016
2

MCX
Exhibit 1: Volumes during the quarter increased 7.3% QoQ…
Volumes (INR t)
6.3
7.8
4.4
-3.5
-12.0
-20.8
11.8
1QFY15
12.5
2QFY15
13.5
3QFY15
14.1
4QFY15
13.6
1QFY16
14.8
2QFY16
13.0
3QFY16
14.9
4QFY16
16.0
1QFY17
QoQ (%)
9.2
14.3
7.3
Source: Company, MOSL
Exhibit 2: …driving 4.7% QoQ revenue growth
Revenue (INR m)
QoQ Growth (%)
8.8
5.6
(20.8)
5.3
1.9
(3.6)
(11.6)
11.6
4.7
474
1QFY15
500
2QFY15
527
3QFY15
537
4QFY15
518
1QFY16
563
2QFY16
498
3QFY16
556
4QFY16
582
1QFY17
Source: Company, MOSL
Exhibit 3: Lower SGA and higher volumes drove EBITDA expansion, despite uptick in staff
expenses
EBITDA (INR m)
52.3
38.6
26.5
15.3
72
1QFY15
132
2QFY15
204
3QFY15
281
4QFY15
146
1QFY16
136
2QFY16
134
3QFY16
137
4QFY16
174
1QFY17
28.2
24.1
26.9
24.6
29.9
EBITDA %
Source: Company, MOSL
1 September 2016
3

MCX
Exhibit 4: PAT driven by higher operating income and other income
PAT (INR m)
8.6
5.1
12.7
7.4
YoY (%)
5.6
-21.8
-45.0
-61.1
234
1QFY15
294
2QFY15
230
3QFY15
493
4QFY15
251
1QFY16
310
2QFY16
180
3QFY16
271
4QFY16
328
1QFY17
30.5
Source: Company, MOSL
Exhibit 5: Silver drove volumes during the quarter…
Gold (INR t)
2.8
3.1
3.0
3.3
2.5
3.2
2.7
4.1
4.0
2.4
2.5
2.0
Silver (INR t)
2.4
2.3
2.2
2.4
1.8
1.9
Source: Company, MOSL
Exhibit 6: …while volumes at crude remained the highest
Crude (INR t)
3.6
2.3
2.8
4.0
4.2
4.3
3.9
4.5
4.4
0.9
0.8
0.8
Copper (INR t)
1.3
1.2
1.0
1.1
1.0
1.2
Source: Company, MOSL
1 September 2016
4

MCX
Financials and Valuations
Income statement
Y/E March
Sales
Change (%)
Cost of Services
SG&A Expenses
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
EO Item (net)
PBT
Tax
Rate (%)
PAT
Net Income
Change (%)
FY11
3,689
28.4
264
1,507
1,918
52.0
247
0
784
-
2,455
727
29.6
1,728
1,728
(21.7)
FY12
5,262
42.6
1,036
879
3,347
63.6
272
0
1,027
142
3,960
1,098
27.7
2,862
2,862
65.6
FY13
4,992
(5.1)
1,072
987
2,932
58.7
307
0
1,427
-
4,051
1,065
26.3
2,986
2,986
4.4
FY14
3,197
(35.9)
935
1,014
1,248
39.0
343
11
1,202
-
2,097
569
27.1
1,528
1,528
(48.8)
FY15
2,038
(36.3)
733
616
689
33.8
259
14
1,285
-
1,701
450
26.5
1,251
1,251
(18.1)
FY16
2,135
4.8
779
804
553
25.9
246
0
1,191
667
831
413
49.7
418
418
(66.6)
FY17E
2,400
12.4
1,018
656
727
30.3
198
1
1,325
-
1,854
487
26.3
1,367
1,367
226.8
(INR Million)
FY18E
3,479
44.9
1,157
692
1,630
46.8
201
-
1,345
-
2,773
680
24.5
2,094
2,094
53.2
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
SGF
Loan & other long term liab.
Capital Employed
Net Block
CWIP
Other LT Assets
Investments
Curr. Assets
Current Investments
Debtors
Cash & Bank Balance
Loans & Advances
Other Current Assets
Current Liab. & Prov
Net Current Assets
Application of Funds
E: MOSL Estimates
FY11
510
7,975
8,485
127
8,612
1,953
0
-
-
13,044
8,236
489
3,310
897
113
6,385
6,659
8,612
FY12
508
9,461
9,969
432
10,401
1,369
1
1,907
2,208
13,274
9,294
514
3,124
283
59
8,358
4,916
10,401
FY13
510
11,058
11,567
569
12,136
2,044
-
531
1,481
13,802
9,201
69
3,475
530
525
5,721
8,080
12,136
FY14
510
10,931
11,441
1,720
449
13,610
1,735
-
281
132
15,267
10,766
90
3,417
676
319
3,805
11,462
13,610
FY15
510
11,512
12,022
1,871
343
14,236
1,552
-
281
132
16,278
12,795
107
2,655
456
265
4,007
12,271
14,236
FY16
510
11,529
12,039
1,879
282
14,201
3,528
-
281
132
14,227
8,511
42
5,003
268
404
3,967
10,260
14,201
FY17E
510
12,205
12,715
1,879
282
14,877
3,550
-
281
132
15,672
8,511
122
6,049
542
449
4,759
10,913
14,877
(INR Million)
FY18E
510
13,242
13,752
1,879
282
15,914
3,591
-
281
132
17,756
8,511
185
7,554
824
682
5,846
11,910
15,914
1 September 2016
5

MCX
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (Days)
Fixed Asset Turnover (x)
FY11
33.9
38.7
166.4
5.0
17.1
FY12
56.1
61.4
195.5
24.0
50.0
FY13
58.6
64.6
226.8
0.5
0.9
FY14
30.0
36.9
225.4
10.2
39.0
FY15E
24.6
29.6
235.8
10.2
48.5
FY16
23.4
13.0
236.1
-
-
FY17E
26.2
30.0
249.3
15.3
69.3
FY18E
40.0
43.9
269.7
20.4
60.5
29.2
25.6
20.3
10.6
6.0
0.6
17.6
16.1
11.5
7.3
5.1
2.8
16.9
15.3
13.0
7.6
4.4
0.1
33.0
26.9
29.1
11.4
4.4
1.2
40.3
33.4
51.2
17.3
4.2
1.2
42.4
76.0
67.3
17.4
4.2
-
37.8
33.0
52.1
15.1
4.0
1.8
24.8
22.5
22.0
10.0
3.7
2.4
22.4
16.7
(49.7)
48.4
27.0
31.0
24.8
(89.8)
35.7
31.2
27.7
26.5
(151.3)
5.1
27.3
13.3
12.8
(118.5)
10.3
18.1
10.7
10.4
(35.4)
19.1
11.4
3.5
8.8
(58.6)
7.2
11.7
10.8
10.5
72.5
18.5
12.7
15.4
15.1
19.4
16.8
Cash Flow Statement
Y/E March
CF from Operations
Cash for Working Capital
Net Operating CF
Net Purchase of FA
Free Cash Flow
Net Purchase of Invest.
Net Cash from Invest.
Proc. from equity issues
Proceeds from LTB/STB
Dividend Payments
Cash Flow from Fin.
Others
Net Cash Flow
Opening Cash Bal.
Add: Net Cash
Closing Cash Bal.
FY11
1,619
1,080
2,700
(286)
2,414
(2,042)
(2,328)
-
-
(238)
(238)
470
604
2,700
604
3,310
FY12
1,600
1,160
2,760
(200)
2,561
(2,723)
(2,923)
-
-
(296)
(296)
273
(186)
3,310
(186)
3,124
FY13
2,470
(1,941)
529
(462)
68
1,910
1,448
-
-
(2,134)
(2,134)
(156)
3,124
(156)
2,968
FY14
1,949
(1,565)
385
(59)
325
586
527
-
-
(1,133)
(1,133)
-
(221)
3,475
(221)
3,255
FY15E
469
503
972
(9)
963
(1,080)
(1,089)
-
-
-
-
-
(117)
3,417
(117)
3,300
FY16
512
22
533
(200)
333
5,367
5,167
-
-
-
-
5,701
2,655
5,701
8,356
(INR Million)
FY17E
577
393
970
(220)
750
944
724
-
-
(653)
(653)
1,041
5,003
1,041
6,044
FY18E
1,269
508
1,777
(242)
1,535
972
730
-
-
(1,002)
(1,002)
1,505
6,049
1,505
7,554
1 September 2016
6

MCX
Corporate profile
Company description
MCX, India’s largest and only listed exchange,
commenced operations on 10 November 2003. It is
an electronic commodity futures exchange, with a
scalable technology framework and disaster
recovery site (DRS) for end-to-end functioning of
systems and network. MCX had 84% market share
in terms of the value of commodities traded in the
futures market in FY15. MCX has a pan India
presence, with over 2,000 members, and
operations through 486,700+ terminals, across
1,879 cities and towns.
Exhibit 19: Sensex rebased
Exhibit 8: Shareholding pattern (%)
Jun-16
Mar-16
Promoter
Public
Others
Promoter
--
99.6
0.4
--
--
99.6
0.4
--
Dec-15
--
99.6
--
--
Exhibit 9: Top holders
Holder Name
Kotak Mahindra Bank Limited
Blackstone Gpv Capital Partners (Mauritius) Vi Fii Ltd.
Axis Mutual Fund (Holding Under Various Schemes
Jhunjhunwala Rakesh Radheshyam
Idfc Premier Equity Fund
%
Holding
15.0
4.8
4.6
3.9
3.7
Exhibit 10: Top management
Name
Satyananda Mishra
B Venkataramani
Mrugank Paranjape
Designation
Chairman
Managing Director & CEO
Managing Director & CEO
Exhibit 11: Directors
Name
Arun Nanda
G Anantharaman
Govinda Rao Marapalli
PRAVIN TRIPATHI
R Amalorpavanathan
M A K Prabhu
Madhu Jayakumar
Name
S K Mitra
Saurabh Chandra
Ajay Kumar
Amit Goela
Hemang Raja
Padma Raghunathan
*Independent
Exhibit 12: Auditors
Name
Joshi Apte & Co
Deloitte Haskins & Sells LLP
Type
Statutory
Statutory
Exhibit 13: MOSL forecast v/s consensus
EPS
(INR)
FY17
FY18
MOSL
forecast
26.2
40.0
Consensus
forecast
26.3
34.9
Variation
(%)
-0.4
14.5
1 September 2016
7

Disclosures
This document has been prepared by Motilal Oswal Securities Limited (hereinafter referred to as Most) to provide information about the company (ies) and/sector(s), if any, covered in the report and may be distributed by it and/or
MCX
its affiliated company(ies). This report is for personal information of the selected recipient/s and does not construe to be any investment, legal or taxation advice to you. This research report does not constitute an offer, invitation or
inducement to invest in securities or other investments and Motilal Oswal Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not for public distribution and has been furnished to
you solely for your general information and should not be reproduced or redistributed to any other person in any form. This report does not constitute a personal recommendation or take into account the particular investment
objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, investors should consider whether it is suitable for their particular circumstances and, if necessary, seek
professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide
for future performance, future returns are not guaranteed and a loss of original capital may occur.
MOSt and its affiliates are a full-service, integrated investment banking, investment management, brokerage and financing group. We and our affiliates have investment banking and other business relationships with a some
companies covered by our Research Department. Our research professionals may provide input into our investment banking and other business selection processes. Investors should assume that MOSt and/or its affiliates are
seeking or will seek investment banking or other business from the company or companies that are the subject of this material and that the research professionals who were involved in preparing this material may educate
investors on investments in such business . The research professionals responsible for the preparation of this document may interact with trading desk personnel, sales personnel and other parties for the purpose of gathering,
applying and interpreting information. Our research professionals are paid on twin parameters of performance & profitability of MOSt.
MOSt generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. Additionally,
MOSt generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of any companies that the analysts cover. Our salespeople, traders, and other professionals or
affiliates may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make
investment decisions that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing among other things, may give rise to real or potential
conflicts of interest. MOSt and its affiliated company(ies), their directors and employees and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives
thereof of companies mentioned herein. (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 company(ies)
discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the
same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the affiliates of MOSt even though
there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
Reports based on technical and derivative analysis center on studying charts company's price movement, outstanding positions 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 fundamental analysis. In addition MOST has different business segments / Divisions with independent research separated by Chinese walls catering to different set of customers having various
objectives, risk profiles, investment horizon, etc, and therefore may at times have different contrary views on stocks sectors and markets.
Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt MOSt or any of its affiliates or employees from,
any and all responsibility/liability arising from such misuse and agrees not to hold MOSt or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSt or any of its affiliates or employees free
and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The information contained herein is based on publicly available data or other
sources believed to be reliable. Any statements contained in this report attributed to a third party represent MOSt’s interpretation of the data, information and/or opinions provided by that third party either publicly or through a
subscription service, and such use and interpretation have not been reviewed by the third party. This Report is not intended to be a complete statement or summary of the securities, markets or developments referred to in the
document. While we would endeavor to update the information herein on reasonable basis, MOSt and/or its affiliates are under no obligation to update the information. Also there may be regulatory, compliance, or other reasons
that may prevent MOSt and/or its affiliates from doing so. MOSt or any of its affiliates or employees shall not be in any way responsible and liable for any loss or damage that may arise to any person from any inadvertent error in
the information contained in this report. MOSt or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation
the implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The recipients of this report should rely on their own investigations.
This report is intended for distribution to institutional investors. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision based on this report or
for any necessary explanation of its contents.
Most and it’s associates may have managed or co-managed public offering of securities, may have received compensation for investment banking or merchant banking or brokerage services, may have received any compensation
for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months.
Most and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
Subject Company may have been a client of Most or its associates during twelve months preceding the date of distribution of the research report
MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise of over 1 % at the end of the month immediately preceding the date of publication of the research in the securities mentioned in this
report. To enhance transparency, MOSt has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report.
Motilal Oswal Securities Limited is registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014. SEBI Reg. No. INH000000412
Pending Regulatory inspections against Motilal Oswal Securities Limited:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold inquiry and
adjudge violation of SEBI Regulations; MOSL replied to the Show Cause Notice whereby SEBI granted us an opportunity of Inspection of Documents. Since all the documents requested by us were not covered we have requested
to SEBI vide our letter dated June 23, 2015 to provide pending list of documents for inspection.
List of associate companies of Motilal Oswal Securities Limited -
Click here to access detailed report
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or
indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The research analysts, strategists, or research associates principally responsible for preparation of MOSt research
receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues
Disclosure of Interest Statement
Analyst ownership of the stock
Served as an officer, director or employee -
MCX
No
No
A graph of daily closing prices of securities is available at www.nseindia.com and http://economictimes.indiatimes.com/markets/stocks/stock-quotes
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or
which would subject MOSt & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures
Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412)
has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Kong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of
Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of
these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting
Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOSL is
not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in
the absence of specific exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services described herein are not available to or intended for U.S. persons.
This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This
document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors and will be
engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by
the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal
Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL, and
therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
For Singapore
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations and is a
subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors, as defined in the
Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time.
In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Varun Kumar
Varun.kumar@motilaloswal.com
Contact : (+65) 68189232
Office Address:21 (Suite 31),16 Collyer Quay,Singapore 04931
Kadambari Balachandran
kadambari.balachandran@motilaloswal.com
(+65) 68189233 / 65249115
1 September 2016
Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com
Motilal Oswal Securities Ltd
8