Detailed Report | Sector: Cement
th
13 Annual Global Investor Conference
BSE Sensex
32,159
S&P CNX
10,093
Shree Cement
TP: INR22,360 (+19%)
Mr H M Bangur
MD and CEO
Shree Cements
CMP: INR18,800
Buy
CEO TRACK
Financials Snapshot (INR b)
2017 2018E 2019E
Y/E Mar
Net Sales
84.3
98.9 123.0
EBITDA
23.7
25.0
31.9
Net Profit
13.4
16.0
19.1
EPS (INR)
384.4 460.4 547.8
EPS Gr.(%)
5.4
19.8
19.0
BV/Sh. (INR)
2,210 2,622 3,121
RoE (%)
18.4
19.1
19.1
RoCE (%)
17.5
17.7
18.0
P/E (x)
48.9
40.8
34.3
P/BV (x)
8.5
7.2
6.0
EV/EBITDA(x)
26.5
24.4
18.7
EV/Ton(USD)
314
257
224
Slowing capacity addition to drive utilization improvement
Takeaways from CEO track; limestone resources – a constraint
We hosted Mr H M Bangur, MD and CEO of Shree Cement (SRCM), as part of ‘CEO Track’ at
our annual conference. Key takeaways:
Capacity addition will likely slow down from 5% over FY12-17 to sub-2% in the next
five years. This, coupled with stable demand, should drive utilization improvement in
the next 3-4 years.
Per capita cement consumption in India continues to be among the lowest in the
world, the improvement in which could drive structural growth in India’s cement
industry.
Limestone reserves in India are scarce and can support demand only for the next 6-7
years before getting fully utilized.
Import of cement does not pose a major threat for India due to the relatively cheap
price of delivered cement.
The company is likely to report growth at 1.5-2x that of industry average, led by
capacity addition ahead of industry.
SRCM will continue enjoying cost efficiency due to its capability to put up cement
plants at 30-40% lower cost than industry. Hence, it will not bid for any expensive
acquisition.
Given its relatively healthy balance sheet, the company is likely to reward investors
with a dividend payout.
Pace of capacity addition slowing down
Management expects capacity addition of ~50mt over the next five years, lesser
than +85-90mt over FY12-17. This translates into a capacity addition rate of 2% over
FY17-22, as against 5% over FY12-17. Demand growth over FY12-17 was sub-5% due
to weak demand from the housing and rural segments. This, coupled with higher
supply addition, led to flat utilization during that period.
With slowing supply addition and increasing demand, we expect industry utilization
to increase meaningfully over the next 3-4 years.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Abhishek Ghosh – Research analyst
(Abhishek.Ghosh@MotilalOswal.com); +91 22 3982 5436
Pradnya Ganar – Research analyst
(Pradnya.Ganar@motilaloswal.com); +91 22 3980 4322
September 2017
1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Shree Cement
13 Annual Global Investor Conference
Exhibit 2:
Demand CAGR was 4-5% over FY12-17, while it is
expected to be 6-7% over FY17-22E, leading to utilization
improvement
Demand (in mt)
Utilization (%)
th
Exhibit 1:
Supply grew at a CAGR of 5% from FY12-17, while
it is expected to grow at only 2% CAGR from FY17-22E
Supply (in mt)
85%
71%
68%
325
410
460
230
280
393
FY12
FY17
FY22E
Source: MOSL, Company
FY12
FY17
FY22E
Source: MOSL, DIPP
Per capita cement consumption continues to increase
Management expects demand over the medium-to-long term to be driven by an
increase in per capita consumption, which is substantially lower in India compared
to most other countries. According to industry reports, per capita consumption of
cement in India at ~200kg is significantly behind world average of 580kg. China and
Turkey lead, with per capita consumption of 1,780kg and 830kg, respectively.
The industry expects population to increase at a CAGR of 1-1.2% over the next few
years. This implies that if cement demand grows at 6-7% over the next five years,
then per capita consumption should also grow at a similar pace. Per capita
consumption of cement is likely to be 268kg/281kg if it grows at a CAGR of 6%/7%,
which would still be lower than the world average by 54%/51%. Hence, we do not
expect demand growth in India to saturate over the medium term. Instead, it would
continue growing sustainably at 5%+.
Exhibit 3:
Per capita consumption in India is low compared to other countries and world
average (in kg)
1780
830
660
580
470
355
280
209
India
China
Turkey
Vietnam
World
Russia
Brazil
USA
Source: MOSL, Company
September 2017
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Shree Cement
13 Annual Global Investor Conference
Exhibit 4:
6% CAGR in per capita consumption for cement in
India would result in 54% discount to world average
India’s per capita consumption of cement (in Kg)
580
th
Exhibit 5:
7% CAGR in per capita consumption for cement in
India would result in 52% discount to world average
India's per capita comsumption of cement (in Kg)
580
200
FY17
268
FY22E
World average
Source: MOSL, Company
200
FY17
281
FY22E
World average
Source: MOSL, Company
Limestone resources – a constraint; existing players at advantage
According to management, current limestone resources are expected to get
fully utilized over the next 6-7 years. To have access to higher limestone
reserves, the environment norms would have to be relaxed. Hence, players with
large limestone reserves with ability to meet growing demand are likely to be
the key beneficiaries.
The cost of bidding for new limestone mines has been increasing constantly,
putting new capacities at cost advantage compared to legacy assets. To justify
incremental flow of capital into these new capacities, pricing has to improve.
This will ensure that profitability of the existing players improves substantially.
Ambuja Cement
in Maharashtra
Dalmia
Bharat in
Rajasthan
Dalmia
Bharat in
Orissa
Dalmia Bharat
in Chattisgarh
Emami
Cement in
Rajasthan
Exhibit 6:
Limestone bid prices on a rise
Bid price by cement companies for limestone(INR/ton)
Shree
Cement in
Chattisgarh
Emami
Cement in
Rajasthan
19-Feb-16
28-Sep-16
5-Jan-17
12-Jan-17
12-Jan-17
2-May-17
3-Jul-17
Source: Company, MOSL
No threats from cement imports
Management does not expect any form of threat from cement imports as the
cost of delivered cement works out to be INR6/kg, which is at a significant
discount to other imported commodities (e.g. delivered cost is INR40/kg for
steel, INR400/kg for aluminum and INR140/kg for copper).
September 2017
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Shree Cement
13 Annual Global Investor Conference
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The scalability of cement imports is another challenge. This is because adjusted
for freight; the logistics for delivering cement to land-locked areas is extremely
difficult. Thus, while it may be a far possibility in coast-bound areas, it is
extremely difficult in land-locked areas due to the issues related to logistics.
400
Exhibit 7:
Delivered cost of cement much lower than other commodities
Delivered cost in INR/kg
140
40
Copper
Aluminium
Steel
6
Cement
Source: MOSL, Company
SRCM to outperform industry growth led by significant capacity addition
Management expects SRCM’s volumes to grow at 1.5-2x that of industry over
the next few years, led by its better capacity addition.
SRCM is likely to increase capacity from 29.3mt at end-FY17 to ~39.8mt by end-
FY19 while diversifying into the newer markets of south India. The company is
expected to add capacity at a 15% CAGR over FY17-19, far higher than industry,
which will likely result in market share gains.
Over FY13-17, the company exhibited volumes CAGR of 13% v/s industry
average of 5%, led by doubling of capacity. The trend is likely to continue as it
plans to increase capacity by ~34% over FY17-19.
Exhibit 8:
SRCM’s capacity to grow at CAGR of 15% over FY17-19
Capacity (in mt)
39.8
29.3
13.5
FY12
FY17
FY19E
Source: MOSL, Company
Continues to create capacities at 30-40% discount
Management believes that it is unlikely to acquire capacity at replacement cost,
as the company has the capability to put up cement plants at 30-40% lower cost
than industry. The cost efficiency of 30-40% emanates from its superior project
execution capabilities and standardization of plants. This trend is likely to
continue, going forward.
SRCM is the most cost-efficient player in the industry. Its superior execution
capability enables it to achieve RoIC of over ~50% (FY19E). The company’s gross-
4
September 2017

Shree Cement
13 Annual Global Investor Conference
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block-to-capacity (GB/capacity) – currently at ~USD53/tonne – has been
structurally trending downward, as the proportion of brownfield expansion has
increased. Its GB/capacity is at 28% discount to peers, which is also reflected in
its superior RoCE profile.
Exhibit 9:
Gross block to capacity of SRCM much lesser than large-cap average
90
70
50
30
10
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17E
Source: MOSL, Company
SHREE
Large Cap Avg
Strong cash generation to result in higher payouts
Given the stable cash flow generation potential over the next few years,
management believes that incremental cash generation could be returned to
shareholders in form of higher dividend payout. SRCM has cash of INR40b in its
books at end-FY17, which is likely to further increase to INR50b+ in FY19.
Exhibit 10:
Healthy balance sheet ensures higher payouts to shareholders (INR m)
Cash (LHS)
Dividend paid (RHS)
31,135
25,727
24,037
19,701
972
1006
41,536
5871
810
897
FY13
FY14
FY15
FY16
FY17
Source: MOSL, Company
Valuation and view
SRCM is the most cost-efficient cement producer in India. Its superior execution
capability enables it to achieve RoIC of over ~50% (FY19E). SRCM’s gross-block-
to-capacity (GB/capacity) – currently at ~USD53/tonne – has been structurally
trending downward, as the proportion of brownfield expansion has increased.
Its GB/capacity is at 28% discount to peers, which is also reflected in its superior
RoCE. We believe SRCM deserves to trade at premium valuations; we value the
cement business at 15x FY20E EV/EBITDA to arrive at a target price of
INR22,360. Maintain
Buy.
September 2017
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Shree Cement
13 Annual Global Investor Conference
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Financials and Valuations
Income Statement
Y/E Mar
Net Sales
Change (%)
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depriciation
EBIT
Int. and Finance Charges
Other Income - Rec.
PBT before EO Expense
EO Expense/(Income)
PBT after EO Expense
Tax
Tax Rate (%)
Reported PAT
Adj PAT for EO items
Change (%)
Margin (%)
Balance Sheet
Y/E Mar
Equity Share Capital
Other Reserves
Total Reserves
Net Worth
Deferred Liabilities
Secured Loan
Unsecured Laon
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Appl. of Funds
2013
55,671
16.5
40,293
72.4
15,378
27.6
4,356
11,022
1,931
2,114
11,205
11
11,194
1,155
10.3
10,040
10,049
77.2
18.1
2014
58,759
5.5
44,975
76.5
13,784
23.5
5,499
8,285
1,292
1,964
8,957
-154
9,111
1,238
13.6
7,872
7,739
-23.0
13.2
2015
64,399
9.6
51,097
79.3
13,302
20.7
9,248
4,054
1,206
1,515
4,363
355
4,008
-255
-6.4
4,263
4,640
-40.0
7.2
2016
72,382
12.4
54,746
75.6
17,637
24.4
10,658
6,979
1,021
7,119
13,076
240
12,837
364
2.8
12,472
12,705
173.8
17.6
2017
84,292
16.5
60,619
71.9
23,672
28.1
12,147
11,525
1,294
5,077
15,308
0
15,308
1,917
12.5
13,391
13,391
5.4
15.9
2018E
98,950
17.4
73,905
74.7
25,045
25.3
10,678
14,366
1,318
7,000
20,048
0
20,048
4,010
20.0
16,039
16,039
19.8
16.2
(INR Million)
2019E
2020E
122,966
149,818
24.3
21.8
91,041
109,391
74.0
73.0
31,925
40,428
26.0
27.0
15,961
15,512
15,964
24,916
1,108
706
9,000
11,000
23,856
35,210
0
0
23,856
35,210
4,771
7,042
20.0
20.0
19,085
28,168
19,085
19.0
15.5
28,168
47.6
18.8
2013
348
38,088
38,088
38,436
-938
11,274
0
11,274
48,773
56,895
40,242
16,653
2,500
22,033
19,478
5,305
3,147
3,694
7,333
11,891
10,841
1,050
7,587
48,773
2014
348
46,760
46,760
47,109
-1429
10,783
0
10,783
56,463
66,764
45,741
21,023
8,500
22,444
19,892
8,098
2,966
1,593
7,236
15,396
14,209
1,186
4,496
56,463
2015
348
52,416
52,416
52,764
-1952
8,200
0
8,200
59,012
85,764
54,989
29,154
6,000
16,626
26,246
9,189
4,764
3,075
9,219
19,015
18,135
880
7,231
59,012
2016
348
68,107
68,107
68,455
-3718
7,265
0
7,265
72,002
38,689
8,187
29,647
3,500
30,305
27,463
8,152
3,286
830
15,195
18,913
18,835
78
8,551
72,002
2017
348
76,633
76,633
76,981
-5077
12,925
0
12,925
84,829
46,297
20,306
25,991
7,104
40,426
33,063
13,145
3,351
1,110
15,456
21,755
21,674
81
11,308
84,829
2018E
348
90,994
90,994
91,343
-5277
11,425
0
11,425
97,490
55,401
30,984
24,417
10,000
40,426
46,868
14,910
5,422
15,149
11,386
24,221
23,043
1,177
22,647
97,490
(INR Million)
2019E
2020E
348
348
108,402
134,892
108,402
134,892
108,750
135,241
-5516
-5868
9,925
8,425
0
0
9,925
8,425
113,159
137,798
75,401
46,945
28,456
10,000
40,426
65,935
18,529
5,727
28,203
13,476
31,658
30,320
1,337
34,277
113,159
98,401
62,457
35,944
4,000
40,426
93,677
22,575
6,978
48,526
15,598
36,250
34,889
1,361
57,427
137,798
September 2017
6

Shree Cement
13 Annual Global Investor Conference
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Financials and Valuations
Ratios
Y/E Mar
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
EV (US$)
EV/ton (USD-Cap)
Dividend Yield (%)
Return Ratios (%)
RoIC
RoE
RoCE
Normalized RoE
Working Capital Ratios
Inventory (Days)
Debtor (Days)
Creditor (Days)
Working Capital Turnover (Days)
Leverage Ratio (x)
Current Ratio
Debt/Equity
Cash Flow Statement
Y/E Mar
Oper. P/L before Tax
Interest/Dividends Recd.
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
(inc)/dec in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from investments
Issue of Shares
(Inc)/Dec in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
2013
288.5
441.3
1,103.3
20.0
8.1
2014
222.2
427.5
1,352.3
22.0
11.4
2015
133.2
541.3
1,514.6
24.0
22.8
2016
364.7
863.8
1,965.0
24.0
8.1
51.5
21.8
9.6
9.1
35.8
9,281
364
0.1
61.1
30.6
25.2
33.5
35
19
71
50
1.6
0.3
32.2
18.1
16.5
22.0
50
17
88
28
1.3
0.2
15.1
9.3
10.0
19.2
52
24
103
41
1.4
0.2
19.2
21.0
20.0
32.1
41
15
95
43
1.5
0.1
2017
384.4
974.0
2,209.6
140.0
43.8
48.9
19.3
8.5
7.9
26.5
9,189
314
0.7
27.4
18.4
17.5
30.0
57
13
94
49
1.5
0.2
2018E
460.4
942.0
2,621.8
40.0
10.5
40.8
20.0
7.2
6.6
24.4
8,935
257
0.2
33.8
19.1
17.7
26.3
55
18
85
84
1.9
0.1
2019E
547.8
1,282.3
3,121.4
40.0
8.8
34.3
14.7
6.0
5.2
18.7
8,722
224
0.2
38.4
19.1
18.0
28.7
55
15
90
102
2.1
0.1
2020E
808.5
1,490.2
3,881.8
40.0
6.0
23.3
12.6
4.8
4.1
14.2
8,490
194
0.2
50.2
23.1
21.9
29.8
55
15
85
140
2.6
0.1
2013
15,368
2,114
-2,198
-5,957
9,326
-7,331
1,995
3,319
-4,012
1,867
-5,337
-1,931
-810
-6,211
-896
4,590
3,693
2014
13,938
1,964
-1,729
990
15,162
-15,869
-707
-411
-16,280
1,697
-491
-1,292
-897
-983
-2,101
3,694
1,592
2015
12,947
1,515
-268
-1,253
12,942
-14,879
-1,938
5,818
-9,062
2,364
-2,583
-1,206
-972
-2,398
1,482
1,593
3,075
2016
13,701
6,675
-1,221
-3,384
15,770
-6,268
9,502
-13,679
-19,947
5,266
-935
-758
-1,006
2,568
-1,609
3,075
1,706
2017
23,672
5,077
-3,241
-2,477
23,031
12,096
10,935
10,121
22,217
1,006
5,660
-1,294
-5,871
-499
314
830
1,145
2018E
25,045
7,000
-4,210
2,700
30,535
12,000
18,535
0
12,000
0
-1,500
-1,318
-1,677
-4,495
14,039
1,110
15,149
(INR Million)
2019E
2020E
31,925
40,428
9,000
11,000
-5,010
-7,394
1,423
-2,827
37,339
41,207
-20,000
-17,000
17,339
24,207
0
0
-20,000
-17,000
0
0
-1,500
-1,500
-1,108
-706
-1,677
-1,677
-4,285
-3,883
13,053
20,324
15,149
28,203
28,203
48,526
September 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
th
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
Shree Cement
13 Annual Global Investor Conference
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.
SRCM is likely to add grinding capacity by ~16mt over FY17-FY20 with ~43% of
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
incremental capacity would be added in east in Bihar,
seek to do business
WB/Jharkhand.
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
Odisha and
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
Additionally ~23% of the grinding capacity would be added in North to reduce
Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
Terms & Conditions:
freight cost while ~32% of the incremental capacity would be in South and West
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
markets. Hence over the next 2-3 years SRCM would have presence across all the
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.
markets as against the current exposure to North and East market. SRCM would
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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.
have total capacity of ~6-7mt in Bihar and adjoining market with capacity market
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
share of ~25- 30%.
report.
indirectly related to the specific recommendations and views expressed by research analyst(s) in this
This could bode really well for SRCM given the strong growth in
Disclosure of Interest Statement
Shree
strong
Bihar market on back of
Cement
push towards infrastructure and low cost housing.
Analyst ownership of the stock
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
Deserves premium valuations; reiterate Buy
SRCM is the most cost-efficient
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
player in the industry. Its superior execution capability enables it to achieve RoIC of
views.
Regional Disclosures (outside India)
over ~50% (FY19E). SRCM’s
or any jurisdiction, where such distribution, publication, availability use would be contrary to
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country
gross-block-to-capacity (GB/capacity)
or
– currently at
law,
regulation or which would subject MOSL & its group companies to registration or licensing requirements within such jurisdictions.
~USD53/tonne – has been structurally trending downward, as the proportion of
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)
brownfield expansion has increased. Its GB/capacity is at 28% discount to peers,
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which is also reflected in its superior RoCE profile
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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.
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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
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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
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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
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September 2017
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