Torrent Power
BSE SENSEX
41,559
S&P CNX
12,225
18 December 2019
Update | Sector: Utilities
CMP: INR270
TP: INR346 (+28%)
Buy
Low LNG prices keep UnoSugen up and running
Strong positioning, healthy balance sheet; Maintain Buy
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
We met Torrent Power (TPW) to get an update on the business outlook. Key
TPW IN
takeaways:
481
131.2 / 1.8
314 / 230
-9/7/-9
408
46.4
Plan to increase gas sourcing mix toward spot
Financials Snapshot (INR b)
Y/E Mar
2019 2020E 2021E
Net Sales
131.5 135.1 139.3
EBITDA
32.0
34.5
37.8
PAT
9.0
13.9
13.7
EPS (INR)
18.7
28.8
28.5
Gr. (%)
-4.6
54.1
-1.2
BV/Sh (INR)
186.6 209.5 231.9
RoE (%)
10.8
14.6
12.9
RoCE (%)
8.5
8.6
9.3
P/E (x)
14.6
9.5
9.6
P/BV (x)
1.5
1.3
1.2
Shareholding pattern (%)
As On
Sep-19 Jun-19 Sep-18
Promoter
53.6
53.6
53.6
DII
20.5
18.2
19.6
FII
7.5
7.9
5.8
Others
18.5
20.3
21.1
FII Includes depository receipts
Stock Performance (1-year)
Torrent Power
Sensex - Rebased
320
295
270
245
220
TPW has not tied-up new gas supplies for its UnoSugen PPA (effective from 1
st
Jul’19). Instead, the company is (a) making use of gas tied up for Sugen
(@USD6.5/mmbtu till Dec’20) and (b) buying from spot, as required.
While the Unosugen PPA has a ceiling on the cost of supply (INR5.6/kWh),
current spot contract prices provide significant cushion (Exhibit 2).
TPW believes that the natural gas market would remain oversupplied, and thus
it would increase sourcing from spot contracts. Longer-term contracts
(generally up to 1.5 years) could be entered, but pricing is done with reference
to Brent (slope of ~10-11%) and resulting in higher cost. According to our oil &
gas sector analyst, the glut in global gas supply is likely to continue, given (a)
increasing gas supply from the US and Qatar and (2) plateauing consumption in
China along with possible lower imports from Japan.
TPW has also contracted storage-cum-regasification capacity of 1mtpa at
Petronet LNG’s Dahej terminal for its imports. We note there is capacity in
place to increase offtake, if required. Of the 17.5mtpa capacity at the Dahej
terminal, only ~15.8 mtpa is contracted. Besides, another 5mtpa of capacity is
scheduled to come up in Mundra.
On the domestic front, TPW has participated in domestic gas allocation from
the KG-D6 basin and won supply for 0.25mmscmd.
Lower spot prices, along with sufficient tie-ups of gas contracts, provide
visibility for UnoSugen PPA. We note at current spot prices, cost of generation
is ~INR3.6/kWh versus max. fuel cost of INR4.5 (w/o impacting F/C recoveries).
Not participating in new renewable projects
TPW’s recent renewable projects have faced issues: (1) SECI-III (500MW) was
impacted by weak finances of an EPC contractor, land issues and is now past
the original COD. (2) SECI-V (115MW) has faced issues of land procurement. (3)
SECI-I project has been downsized to 50MW (from original 150MW).
Such projects though are cushioned by bank guarantees. The company has
encashed INR4b of guarantees for SECI-III given the delay. Further, INR1.8b of
investments made in SECI-I have been received back.
The company’s SECI-III and SECI-V projects though have not been terminated.
TPW has asked for an extension in timelines. Progress on SECI-III would depend
on the extension in timelines and a credible plan from the EPC contractor/cost
dynamics for appointing a new contractor.
Aniket Mittal
(aniket.mittal@motilaloswal.com); +9122 7198 5585
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.
 Motilal Oswal Financial Services
Torrent Power
Accordingly, TPW awaits clarity on these projects and is focused on executing its
current portfolio before further renewable expansion. The company’s MSEDCL
project (126MW) is on track and expected to commission in FY20. Given the
liquidity release (BG revoked, back down of SECI-I), TPW is funding this project
through its accruals.
Looking at T&D; strong positioning, healthy balance sheet are positives
TPW has participated in TBCB projects within transmission. However, the
company is yet to win awards and believes competitors have been aggressive in
bidding. From a distribution standpoint, the company does see possible
opportunities within Madhya Pradesh, Rajasthan and Orissa, and will look to
participate as and when they crop up. We believe TPW remains well poised to
capitalize on opportunities from distribution privatization.
Outlook for TPW’s gas plants has improved with low LNG prices, sourcing of
imported LNG and the offtake of UnoSugen PPA. This, along with continued
capitalization within regulated distribution, AT&C loss reduction in franchise
business and debt repayment, would drive earnings CAGR of 19% over FY19-22.
We maintain our
Buy
rating with a target price of INR346/share.
Exhibit 1: JKM LNG futures (USD/ mmbtu)
16
12
8
4
0
JKM LNG
~43% down over the past one year
Source: Bloomberg, MOFSL
Current spot contract prices
of USD5.5/mmbtu can rise
up to ~USD7.4/mmbtu w/o
impacting FC recoveries for
UnoSugen, providing
significant cushion.
Exhibit 2: Estimated cost of generation
Current
Gas price: landed India
Re-gasification, transportation
Gas price: landed plant
Variable cost of generation
Max. cost of supply for Uno Sugen
Fixed cost
Max. variable cost of gen. (w/o impacting FC recovery)
Implied Max. Gas price: landed India
USD/mmbtu
USD/mmbtu
USD/mmbtu
INR/kWh
INR/kWh
INR/kWh
INR/kWh
USD/mmbtu
5.5
1.5
7.0
3.6
5.6
1.1
4.5
7.4
Source: Company, MOFSL
18 December 2019
2
 Motilal Oswal Financial Services
Torrent Power
Exhibit 3: TPW: EBITDA and PAT
EBITDA - INR b
Adj. PAT - INR b
31
21
13
1
FY14
4
FY15
FY16
9
25
11
14
15
31
32
35
38
39
We expect EBITDA/PAT
CAGR of 7/19% over FY19-
22 on the back of offtake of
UnoSugen PPA and
continued capex in the
regulated distr. business.
9
4
FY17
FY18
9
FY19
FY20E*
FY21E
FY22E
Note: *FY20E PAT has been adjusted for INR2.8b of one-time MAT credit
Source: Company, MOFSL
Exhibit 4: TPW SOTP
FY21 basis
Regulated businesses
Distribution
Ahmedabad
Surat
Regulatory assets
Generation
Sabarmati
Sugen
UnoSugen
Others businesses
RE projects
Bhiwandi and Agra DFs
Sugen PPA efficiency earnings
Others
EV
Less: Net debt
MCap
No. of shares
Value per share
Reg. E
Equity INR m
48,705
20,660
7,089
9,330
4,515
7,110
EBITDA
INR m
6,901
8,006
2,603
RoE
%
Growth
%
Multiple
Equity
x
Value INR m
(RoE-g)/(CoE-g)
75,564
1.9
1.9
0.9
1.0
1.4
39,352
13,503
8,397
4,515
9,796
Norm.
Debt INR m
35,556
16,330
3,673
0
0
15,553
5,581
EV
INR m
116,701
55,682
17,177
8,397
4,515
25,349
5,581
16.0
16.0
6.0
6.0
14.0
15.5
0.0
0.0
8.0
6.5
6.0
55,205
52,037
15,618
239,562
73,375
166,188
481
346
Source: MOFSL, Company
18 December 2019
3
 Motilal Oswal Financial Services
Torrent Power
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 (%)
2015
103,960
19.8
20,799
20.0
7,205
13,594
9,623
3,662
-230
7,404
3,777
51.0
30
3,597
3,367
219.9
2016
117,158
12.7
30,616
26.1
9,157
21,459
11,308
2,819
-74
12,896
3,874
30.0
20
9,002
8,928
165.2
2017
100,536
-14.2
24,603
24.5
10,059
14,544
10,580
1,909
0
5,873
1,576
26.8
8
4,290
4,290
-52.0
2018
115,121
14.5
31,171
27.1
11,315
19,856
8,482
2,636
0
14,010
4,489
32.0
98
9,423
9,423
119.7
2019
131,510
14.2
31,995
24.3
12,265
19,730
8,989
1,896
0
12,636
3,598
28.5
49
8,989
8,989
-4.6
2020E
135,060
2.7
34,550
25.6
12,973
21,577
9,085
1,868
0
14,360
501
3.5
8
13,851
13,851
54.1
2021E
139,273
3.1
37,758
27.1
13,416
24,342
(INR Million)
2022E
141,381
1.5
38,850
27.5
13,759
25,091
8,709
2,141
0
17,774
4,088
23.0
8
13,678
13,678
-1.2
7,816
2,304
0
19,580
4,503
23.0
8
15,068
15,068
10.2
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
2015
4,725
60,832
65,557
93,547
8,579
167,990
186,848
36,065
150,782
2,330
0
43,112
2,597
8,924
23,732
7,860
28,338
28,338
0
14,775
167,987
2016
4,806
59,898
64,705
85,148
13,061
163,215
160,461
9,166
151,295
2,133
0
42,590
4,202
10,570
12,856
14,962
32,902
32,902
0
9,687
163,215
2017
4,806
64,115
68,921
87,681
13,363
170,255
187,266
19,226
168,040
3,321
0
36,625
3,694
9,751
9,336
13,845
37,731
37,731
0
-1,106
170,255
2018
4,806
72,389
77,195
92,981
14,799
185,334
209,170
30,463
178,707
3,925
0
43,258
4,549
11,305
9,982
17,423
40,556
40,556
0
2,702
185,334
2019
4,806
84,896
89,702
97,152
15,654
202,882
222,767
42,628
180,139
3,593
0
61,809
6,270
12,297
9,549
33,693
42,659
42,659
0
19,150
202,882
2020E
4,806
95,863
100,669
96,152
16,400
213,603
242,413
55,601
186,812
501
0
66,383
6,290
12,951
13,449
33,693
42,894
42,894
0
23,489
210,801
(INR Million)
2021E
4,806
106,657
111,463
89,152
17,324
218,329
247,421
69,017
178,404
10,961
0
69,312
6,487
13,355
15,777
33,693
43,148
43,148
0
26,163
215,527
2022E
4,806
118,841
123,648
77,152
18,341
219,539
261,449
82,776
178,673
3,851
0
77,490
6,585
13,557
23,655
33,693
43,275
43,275
0
34,214
216,737
18 December 2019
4
 Motilal Oswal Financial Services
Torrent Power
Financials and Valuations
Ratios
Y/E Mar
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Cash P/E
Price / Book Value
EV/Sales
EV/EBITDA
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios (%)
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Creditors (No. of Days)
Leverage Ratios (%)
Net Debt/Equity (x)
1.1
1.1
1.1
1.1
1.0
0.8
0.7
0.4
0.6
31
9
22
0.7
33
13
23
0.6
35
13
31
0.6
36
14
21
0.6
34
17
22
0.6
35
17
22
0.6
35
17
22
0.7
35
17
22
22.9
7.3
1.2
0.0
7.1
0.9
35.6
5.3
6.9
12.5
6.2
1.7
0.0
6.0
2.6
34.0
13.7
9.8
25.8
7.7
1.6
0.0
7.7
0.0
41.0
6.4
6.6
11.7
5.3
1.4
0.0
6.2
1.0
38.4
12.9
8.4
15.0
6.3
1.5
0.0
6.9
1.8
35.4
10.8
8.5
9.7
5.0
1.3
0.0
6.3
1.8
66.0
14.6
8.6
9.8
5.0
1.2
0.0
5.5
1.8
59.9
12.9
9.3
8.9
4.7
1.1
0.0
4.8
1.8
55.8
12.8
9.5
7.1
22.4
138.8
1.5
21.0
18.6
37.6
134.6
6.0
32.3
8.9
29.9
143.4
0.0
0.0
19.6
43.1
160.6
2.2
11.2
18.7
44.2
186.6
5.0
26.7
28.8
55.8
209.5
5.0
17.3
28.5
56.4
231.9
5.0
17.6
31.4
60.0
257.3
5.0
15.9
2015
2016
2017
2018
2019
2020E
2021E
2022E
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
Cash Flow Statement
2015
20,799
-847
3,759
-1,197
0
22,514
-12,575
9,939
0
1,630
-10,945
0
-1,190
-11,694
828
-12,055
-486
24,218
23,732
2016
30,616
-1,412
-534
-3,167
0
25,503
-16,349
9,155
0
1,599
-14,750
0
-8,055
-11,818
-1,757
-21,629
-10,876
23,732
12,856
2017
24,603
385
236
-1,056
0
24,168
-21,745
2,423
0
829
-20,916
0
2,442
-10,334
1,120
-6,771
-3,520
12,856
9,336
2018
31,171
586
-922
-3,200
0
27,635
-23,866
3,769
0
-9
-23,875
0
5,276
-8,285
-105
-3,114
646
9,336
9,982
2019
31,995
-161
-4,729
-2,859
0
24,246
-19,887
4,359
0
2,942
-16,944
0
4,175
-9,076
-1,265
-6,166
1,136
9,982
11,118
2020E
34,550
0
-438
-2,557
0
31,554
-16,554
15,001
0
1,868
-14,685
0
-1,000
-9,085
-2,884
-12,969
3,900
9,549
13,449
2021E
37,758
0
-346
-3,164
0
34,248
-15,468
18,780
0
2,141
-13,327
0
-7,000
-8,709
-2,884
-18,593
2,328
13,449
15,777
(INR Million)
2022E
38,850
0
-173
-3,486
0
35,191
-6,918
28,273
0
2,304
-4,614
0
-12,000
-7,816
-2,884
-22,700
7,878
15,777
23,655
18 December 2019
5
 Motilal Oswal Financial Services
Torrent Power
NOTES
18 December 2019
6
 Motilal Oswal Financial Services
Torrent Power
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30
days take appropriate measures to make the recommendation consistent with the investment rating legend.
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 Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, 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. MOFSL is a subsidiary
company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on www.motilaloswal.com. MOFSL
(erstwhile Motilal Oswal Securities Limited - 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), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its
stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member
of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance
products.
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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 MOFSL even though there might exist an inherent conflict of interest in
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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 MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity
and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
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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 MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
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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
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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 Financial Services Limited (MOFSL) 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 MOFSL 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
MOFSL , 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., MOFSL 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
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets services
license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and Paragraph 11 of First
Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in respect of any matter arising
from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of which some of whom may consist of
"accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the SFA”). Accordingly, if a Singapore person is not or ceases to be
such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and inform MOCMSPL.
Specific Disclosures
1 MOSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOSL has not received any compensation or other benefits from third party in connection with the research report
10 MOSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
The associates of MOFSL may have:
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financial interest in the subject company
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actual/beneficial ownership of 1% or more securities in the subject company
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received compensation/other benefits from the subject company in the past 12 months
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 Motilal Oswal Financial Services
Torrent Power
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 MOFSL even though there
might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
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acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
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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)
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received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider
demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not
considered in above disclosures.
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.
Terms & Conditions:
This report has been prepared by MOFSL 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 MOFSL. 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. MOFSL will not treat recipients as customers by virtue of their receiving this report.
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. MOFSL, 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 MOFSL. 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 MOFSL 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 MOFSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not
to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOFSL 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 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad(West), Mumbai-
400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412. AMFI:
ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration
No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.:
INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond,
NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. Private Equity is offered
through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory services is backed by proper research. Please read the Risk
Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee of the returns. Investment in securities market is subject to market risk,
read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law
Tribunal, Mumbai Bench.
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