11 August 2017
1QFY18 Results Update | Sector: Healthcare
Strides Shasun
Buy
BSE SENSEX
31,214
S&P CNX
9,711
CMP: INR876
TP: INR1,300(+48%)
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Maintain positive stance despite muted 1QFY18
Sales increased 10% YoY to INR8.4b in 1QFY18,
led by higher regulated market
formulation and API sales. EBITDA margin shrunk sharply from 16.8% in
1QFY17 to 10.4% in 1QFY18 due to pricing pressure in some products in the US
and an inferior product mix in anti-malaria. PAT thus declined to INR58m from
INR334m in the year-ago period.
Moderate revenue growth for the quarter…Regulated
market sales (50% of
total) rose 12% YoY, led by a niche portfolio in the US, increased product
offering and enhanced reach in Australia. However, growth was partly offset by
pricing pressure in legacy products in the US market. Emerging market sales
(32% of total) rose 7% YoY, led by Africa branded and institutional ARVs. API
sales (18% of total) were steady, with an increase of 11% YoY.
…but segment-specific levers on track:
STR has filed five ANDAs YTD and 29
are pending for approval. It maintained the guidance of 15-20 filings in FY18. In
Australia, STR is on track to increase distribution and also outsourcing from
India. Partners of STR are expected to receive approval for Sevelamer in the
near term, driving API sales. Based on this, STR remains confident of at least
20% YoY revenue growth in FY18, subject to product approvals.
Inspection update:
STR had four USFDA inspections in Q1FY18, of which, three
had zero 483. The Bangalore facility was issued 483 with three observations.
However, there has been product approval post inspection, indicating minimal
regulatory risk over the medium term.
Valuation view:
We remain positive on STR, given its R&D capabilities, vertical
integration, strong compliance culture and diversified presence. We continue
valuing STR on SOTP basis, and maintain
Buy
with TP of INR1,300.
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
STR IN
89.4
78.3 / 1.2
1259 / 849
-9/-36/-37
431
68.9
2019E
Financials & Valuations (INR b)
2017 2018E
Y/E Mar
34.8
43.9
Net Sales
6.4
8.3
EBITDA
2.9
4.2
PAT
32.3
47.4
EPS (INR)
108.2
46.9
Gr. (%)
303.3 341.1
BV/Sh (INR)
10.7
14.7
RoE (%)
7.8
9.2
RoCE (%)
27.2
18.5
P/E (x)
2.9
2.6
P/BV (x)
54.5
11.0
6.7
74.8
57.9
401.5
20.2
12.2
11.7
2.2
Estimate change
TP change
Rating change
Quarterly Performance (Consolidated)
Y/E March
Net Sales
YoY Cha nge (%)
Tota l Expendi ture
EBITDA
Ma rgi ns (%)
Depreci a ti on
Interes t
Other Income
PBT before EO expense
Extra -Ord expens e
PBT
Ta x
Ra te (%)
Mi nori ty Interes t & Profi t/Los s of As s o.
Reported PAT from Continuing Ops.
Adj. PAT from Continuing Ops.
YoY Cha nge (%)
Ma rgi ns (%)
1Q
7,895
28.8
6,573
1,323
16.8
424
559
208
547
60
487
88
18.1
65
334
383
260.9
4.9
FY17
2Q
3Q
9,535
9,335
33.3
7.6
7,338
8,101
1,434
1,997
15.0
21.4
468
475
617
538
658
202
1,008
1,185
0
805
1,008
152
15.1
114
741
741
106.9
7.8
380
78
20.6
1
300
940
59.6
10.1
4Q
8,884
-3.9
7,315
1,569
17.7
529
592
731
1,179
17
1,162
175
15.0
-7
994
1,009
471.5
11.4
1Q
8,418
6.6
7,545
873
10.4
511
640
361
82
58
24
-33
-136.9
0
58
194
-25.4
2.3
FY18
2QE
3QE
10,543
12,197
10.6
30.7
8,466
9,648
2,077
2,549
19.7
20.9
525
518
500
440
250
300
1,302
1,891
0
0
1,302
208
16.0
0
1,094
1,094
923.1
10.4
1,891
321
17.0
0
1,570
1,570
2,534.9
12.9
FY17
4QE
12,739
43.4
9,898
2,841
22.3
514
413
406
2,320
0
2,320
380
16.4
0
1,940
1,940
311.5
15.2
34,834
11.6
28,406
6,428
18.5
1,872
2,269
1,686
3,973
1,002
2,971
470
15.8
462
2,039
2,883
136.7
8.3
FY18E
43,898
26.0
35,557
8,340
19.0
2,068
1,993
1,317
5,596
58
5,538
876
15.8
0
4,662
4,711
63.4
10.7
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.
Tushar Manudhane
(Tushar.Manudhane@motilaloswal.com); +91 022 3010 2498
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Strides Shasun
Higher competition in some products in US and GST-led hiccups affected
overall performance
Sales grew at subdued rate of 10.8% YoY to INR8.4b for the quarter. Regulated
market, comprising US and Australia, continued to form majority of total sales for
the quarter. Within regulated market, the partnered products which constituted
bulk of North America sales faced intense competition due to increased pace of
approvals and increased pricing pressure, adversely affecting overall growth for the
quarter. Even India business growth was affected on account of GST.
Exhibit 1: YoY growth to revive in coming quarters
Total Sales (INR b)
141.1 149.2
172.1 175.3
YoY Growth (%)
Exhibit 2: Sales breakdown (1QFY18)
API
18%
28.8 33.3
6.1
7.2
8.7
9.2
7.6
9.5
7.6
9.3
-3.9
8.9
10.8
8.4
Emerging
market
32%
Regulated
market
50%
Source: MOSL, Company
Source: MOSL, Company
Wait continues for big approvals
Regulated market sales at INR4.1b grew 11.9% YoY for the quarter. STR’s own niche
portfolio saw good traction and increase in market share driving growth in US sales.
Even in Australia, STR continued to expand portfolio and increase reach, driving
overall regulated market sales. The sales growth was offset to some extent by price
cuts in partnered products. STR intends to continue to increase exposure to its own
product to minimize the adverse effects of partnered products.
Exhibit 3: Product approval to reverse downtrend of YoY growth in regulated market sales
Emerging Markets Sales (INR b)
23.9
35.7
52.4
YoY Growth (%)
8.8
16.6
16.5
12.8
-21.4
6.8
1.9
1QFY16
2.3
2QFY16
2.9
3QFY16
3.1
4QFY16
2.5
1QFY17
3.5
2QFY17
3.3
3QFY17
2.4
4QFY17
2.7
1QFY18
Source: MOSL, Company
STR’s recent approval would drive revenue growth to some extent in coming
quarters. STR is anticipating key approvals in course of Q2FY18, which would drive
considerable growth in regulated market business.
11 August 2017
2

Strides Shasun
Africa branded generics and ARVs drive emerging market sales
Emerging market sales, comprising India and Africa branded generics and
Institutional sales, grew 6.8% YoY to INR2.7b. The growth was largely driven by
strong growth in Africa branded business. The key brands in Africa continued to
show good strength and primary sales was on track with secondary sales. Recovery
in ARV business led Institutional business and thereby driving emerging market
business. However, Implementation of GST and inferior product mix in anti-malaria
affected emerging market growth for the quarter.
Exhibit 4: Growth to remain on uptrend
Emerging Markets Sales (INR b)
23.9
35.7
52.4
YoY Growth (%)
8.8
16.6
16.5
12.8
-21.4
6.8
1.9
1QFY16
2.3
2QFY16
2.9
3QFY16
3.1
4QFY16
2.5
1QFY17
3.5
2QFY17
3.3
3QFY17
2.4
4QFY17
2.7
1QFY18
Source: MOSL, Company
With successful completion of WHO regulatory inspection at Kenya facility (UCL),
STR remains in good stead of procuring business with regulatory approved local
manufacturing facility. STR continues to expand product portfolio in ARV as well as
anti-malaria and transfer existing institutional business to UCL. The supplies from
UCL are expected to commence from 2HFY18.
STR to file 15-20 ANDAs in FY18
STR spent INR373m towards product development during the quarter. STR
maintained its momentum of filing ANDAs with 5 filings in YTD. It maintained its
guidance of filing 15-20 ANDAs in FY18. STR has about 67 cumulative ANDA filings till
date. It received 6 new products, taking ANDAs pending for approval to 29. The
pending ANDAs comprises of 7 topicals, 3 modified release, 2 soft gelatin, 5 hard
gelatin and 11 tablets.
Exhibit 5: Quarterly R&D spend to remain stable
R&D Spend (INR m)
348
238
130
216
228
172
463
322
373
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
4QFY17
1QFY18
Source: MOSL, Company
11 August 2017
3

Strides Shasun
Other key highlights:
STR had four USFDA inspections in Q1FY18, out of which, three had Zero 483.
The Bangalore facility was issued 483 with 3 observations. However, there has
been product approval post inspection indicating minimal regulatory risk over
medium term
STR received key approvals from Competition Commission of India, stock
exchanges and SEBI for demerger of API business. STR is in process of seeking
clearance from National Company Law Tribunal, shareholder approval and
creditor approval.
JV with Vivimed has achieved closure.
Valuation and view
Though 1QFY18 performance was muted, we remain positive on STR on the back of
niche product pipeline pending for approval, ongoing aggressive ANDA filings, sound
compliance track record, vertical manufacturing integration and presence in
diversified markets to drive better performance going forward.
We believe STR is poised for strong improvement in return ratios. Including API
business, we expect 21.5% sales CAGR, 26% EBITDA CAGR, and 42% PAT CAGR over
FY17-20.
We value STR on sum-of-the-parts (SOTP), valuing the pharma business at 18x FY19E
earnings (industry average P/E multiple for midcap pharma) and Solara at an EV of
13x FY19E EBITDA to arrive at a price target of INR1,300. Maintain Buy on the stock.
11 August 2017
4

Strides Shasun
Financials and Valuations
Income Statement
Y/E Mar
Net Sales
Change (%)
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
Other Income
Extraordinary items
PBT
Tax
Tax Rate (%)
Min. Int. & Assoc. Share
Reported PAT
Adjusted PAT
Change (%)
2013
9,618
-62.3
1,006
10.5
309
697
795
342
7,001
7,246
112
1.5
11
7,123
230
-87.4
2013
588
19,675
20,263
15,945
0
0
18,240
4,976
13,264
2,415
1
15,378
4,423
4,832
1,658
4,465
10,762
9,363
1,399
4,616
37,198
2014
13,410
39.4
2,235
16.7
565
1,670
1,089
602
-266
918
409
44.5
6
503
3,487
1,416.5
2014
596
9,473
10,068
5,466
0
0
8,039
3,528
4,511
995
4,430
9,993
1,760
3,640
2,312
2,281
4,655
3,557
1,098
5,338
16,308
2015
11,959
-10.8
2,288
19.1
640
1,648
474
386
-74
1,486
532
35.8
-6
959
1,950
-44.1
2015
596
10,853
11,449
8,917
0
0
9,437
3,792
5,645
1,712
6,300
9,668
2,077
3,900
1,469
2,223
4,194
3,334
861
5,474
20,500
2016
28,622
139.3
4,139
14.5
1,313
2,827
1,682
921
-461
1,606
425
26.4
135
1,046
1,385
-29.0
2016
894
25,685
26,579
38,025
0
0
28,578
5,104
23,474
2,942
13,085
25,462
6,131
10,330
3,116
5,885
8,998
8,704
294
16,464
65,232
2017
34,834
21.7
6,428
18.5
1,872
4,557
2,269
1,686
-1,002
2,971
470
15.8
462
2,039
2,883
108.2
2017
894
26,210
27,104
42,232
0
0
32,901
6,976
25,925
2,045
15,897
27,335
7,380
9,971
3,295
6,690
9,340
8,910
430
17,995
71,531
2018E
43,898
26.0
8,341
19.0
2,068
6,273
1,993
1,317
-58
5,539
876
15.8
476
4,187
4,236
46.9
2018E
894
29,587
30,481
39,107
0
0
35,017
9,043
25,973
889
15,897
31,062
9,238
12,565
829
8,430
11,707
11,165
542
19,355
71,784
2019E
54,479
24.1
11,032
20.3
2,171
8,861
1,686
1,362
0
8,537
1,350
15.8
500
6,687
6,687
57.9
2019E
894
34,980
35,874
35,832
0
0
36,304
11,214
25,089
754
14,997
37,742
11,287
15,593
399
10,462
14,350
13,677
673
23,392
73,902
(INR Million)
2020E
62,414
14.6
12,857
20.6
2,247
10,610
1,527
1,311
0
10,393
1,644
15.8
525
8,225
8,225
23.0
2020E
894
41,613
42,507
32,057
0
0
37,515
13,462
24,053
759
14,997
43,664
12,875
17,865
939
11,986
16,383
15,612
771
27,281
76,760
Balance Sheet
Y/E Mar
Share Capital
Reserves
Net Worth
Debt
Deferred Tax
Total Capital Employed
Gross Fixed Assets
Less: Acc Depreciation
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Debtors
Cash & Bank
Loans & Adv, Others
Curr Liabs & Provns
Curr. Liabilities
Provisions
Net Current Assets
Total Assets
(INR Million)
11 August 2017
5

Strides Shasun
Financials and Valuations
Ratios
Y/E Mar
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Price / Book Value
EV/Sales
EV/EBITDA
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios (%)
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Creditors (No. of Days)
Leverage Ratios (%)
Net Debt/Equity (x)
2013
2.6
6.0
226.8
1.3
1.9
0.0
0.0
0.0
0.0
0.2
1.4
2.7
2.0
0.3
183
168
176
0.7
2013
1,006
11,106
-3,105
-888
-6,732
1,389
-3,331
-1,942
11,054
-151
7,572
89
-7,877
-1,976
-137
-9,900
-940
2,597
1,657
2014
7.3
13.6
112.7
336.8
-1,410.0
0.0
0.0
0.0
0.0
38.4
4.3
4.9
4.4
0.8
99
48
73
-0.1
2014
2,235
30,038
-2,607
-1,259
-31,124
-2,717
-4,639
-7,356
47,935
-6,739
36,556
259
1,430
-2,192
-32,683
-33,185
654
1,657
2,312
2015
11.3
18.4
128.1
72.0
43,880.3
77.7
6.8
7.2
37.5
8.2
9.4
7.3
10.8
0.6
119
63
63
0.1
2015
2,288
8,435
-959
-560
-8,371
834
-2,406
-1,572
4,515
427
2,536
31
3,208
-381
-7,070
-4,213
-843
2,312
1,469
2016
15.5
30.2
297.5
4.8
49.1
56.5
2.9
4.0
27.3
0.5
7.3
6.5
7.3
0.4
132
78
99
0.8
2016
4,139
1,113
-3,424
-770
-341
717
34
750
312
-28,911
-28,565
12,264
18,822
-1,347
-243
29,495
1,647
1,469
3,116
2017
32.3
53.2
303.3
3.7
19.3
27.2
2.9
3.4
18.2
0.4
10.7
7.8
8.0
0.5
104
77
78
0.9
2017
6,428
0
-1,352
-470
-1,002
3,604
-3,828
-224
-2,812
1,686
-4,954
0
4,206
-2,269
-408
1,529
179
3,116
3,295
2018E
47.4
70.5
341.1
7.5
19.3
18.5
2.6
2.7
14.0
0.9
14.7
9.2
10.1
0.6
104
77
78
0.7
2018E
8,341
-58
-3,826
-876
0
3,581
-960
2,621
0
1,317
357
0
-3,125
-1,993
-1,286
-6,404
-2,466
3,295
829
2019E
74.8
99.1
401.5
12.0
19.3
11.7
2.2
2.1
10.3
1.4
20.2
12.2
13.3
0.7
104
76
76
0.6
2019E
11,032
0
-4,467
-1,350
0
5,214
-1,152
4,062
900
1,362
1,110
0
-3,275
-1,686
-1,794
-6,755
-430
829
399
2020E
92.1
117.2
475.7
14.7
19.3
9.5
1.8
1.8
8.5
1.7
21.0
13.7
15.2
0.8
104
75
76
0.4
2020E
12,857
0
-3,350
-1,644
0
7,864
-1,216
6,648
0
1,311
95
0
-3,775
-1,527
-2,116
-7,419
540
399
939
Cash Flow Statement
Y/E Mar
Adjusted EBITDA
Non cash opr. exp (inc)
(Inc)/Dec in Wkg. Cap.
Tax Paid
Other operating activities
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free cash flows
(Pur)/Sale of Invt
Others
CF from Inv. Activity
Inc/(Dec) in Net Worth
Inc / (Dec) in Debt
Interest Paid
Divd Paid (incl Tax) & Others
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Opening Balance
Closing Balance
(INR Million)
11 August 2017
6

Strides Shasun
Corporate profile
Strides Shasun (STR) is a first generation, vertically
integrated global pharmaceuticals company, with
business interests in differentiated pharma and
branded generics. It sells formulations in regulated
markets (51% of FY17 sales), emerging markets
(18% of FY17 sales), and to global institutions (16%
of FY17 sales). The API business, which would soon
largely be a part of Solara, constituted 15% of FY17
sales.
Source: MOSL/Bloomberg
Company description
Exhibit 1: Sensex rebased
Exhibit 2: Shareholding pattern (%)
Jun-17
Promoter
DII
FII
Others
31.1
15.5
33.9
19.5
Mar-17
31.1
15.0
33.9
20.0
Jun-16
31.1
11.1
36.9
20.9
Source: Capitaline
Exhibit 3: Top holders
Holder Name
SBI BLUE CHIP FUND
MORGAN STANLEY MAURITIUS COMPANY
LIMITED
GOLDMAN SACHS (SINGAPORE) PTE.
DB INTERNATIONAL (ASIA) LTD
SHIVANAND SHANKAR MANKEKAR
% Holding
6.8
3.1
3.0
2.9
2.1
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Arun Kumar
Shashank Sinha
Badree Komandur
Manjula Ramamurthy
Designation
Chairman
Managing Director
Executive Director
Company Secretary
Exhibit 5: Directors
Name
Badree Komandur
Bharat D Shah
Homi Rustam Khusrokhan
Name
S Sridhar
Sangita Reddy
Deepak Vaidya
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Deloitte Haskins & Sells
Type
Statutory
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
Source: Capitaline
MOSL
forecast
48.1
74.8
92.1
Consensus
forecast
-
-
-
Variation (%)
-
-
-
Source: Bloomberg
11 August 2017
7

Disclosures:
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Securities Ltd. (MOSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock
broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed
public company, the details in respect of which are available on
www.motilaloswal.com.
MOSL is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock
Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Metropolitan Stock Exchange Of India Ltd. (MSE) for its stock broking activities & is Depository participant with Central Depository Services Limited
(CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Pending Regulatory Enquiries against Motilal Oswal Securities Limited by SEBI:
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 requested SEBI to provide all documents, records, investigation report relied upon by SEBI which were referred in Show Cause Notice and also sought personal
hearing. The matter is currently pending.
MOSL, it’s associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have beneficial ownership of 1% or more securities in
the subject company at the end of the month immediately preceding the date of publication of the Research Report.
MOSL and its associate company(ies), their directors and Research Analyst 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 associates of MOSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the
research report.
Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. MOSL and/or its associates may have received any compensation from the subject company in
the past 12 months.
In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have:
a)
managed or co-managed public offering of securities from subject company of this research report,
b)
received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
c)
received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
d)
Subject Company may have been a client of MOSL or its associates during twelve months preceding the date of distribution of the research report.
MOSL 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. To enhance transparency, MOSL 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. MOSL and / or its affiliates do and seek to do business including investment banking with
companies covered in its research reports. As a result, the recipients of this report should be aware that MOSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research
Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
Terms & Conditions:
This report has been prepared by MOSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any way, transmitted to,
copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOSL. The report is based on the facts, figures and information that are considered
true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not
been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice.
The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for the clients. Though
disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOSL will not treat recipients as customers by virtue of their receiving this 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.
Strides Shasun
Disclosure of Interest Statement
Analyst ownership of the stock
Strides Shasun
No
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and Technical Research. Proprietary
trading desk of MOSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOSL research activity and therefore it can have an independent view with regards to
subject company for which Research Team have expressed their views.
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 MOSL & 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 Hong 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:
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person
or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an offer document or solicitation of
offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or
appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document should make such investigations
as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to
determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative
products as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the
views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time
without any prior approval. MOSL, its associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities
mentioned in this document. They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities
functions as a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed therein. This document is
being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not
directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would
be contrary to law, regulation or which would subject MOSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to
certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees, agents or
representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information.
The
person accessing this information specifically agrees to exempt MOSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or
employees responsible for any such misuse and further agrees to hold MOSL 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.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring
Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id:
na@motilaloswal.com,
Contact No.:022-30801085.
Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;
MSE(F&O): INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset
Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth
management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities
Products. * Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
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