20 May 2020
4QFY20 Results Update | Sector: Utilities
JSW Energy
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
JSW IN
1,640
66.8 / 0.9
80 / 35
-4/-19/-19
56
Healthy growth driven by better standalone perf
CMP: INR41
TP: INR64 (+57%)
Buy
Financials & Valuations (INR b)
Y/E MARCH
2020 2021E 2022E
Sales
EBITDA
Adj. PAT
EBITDA Margin (%)
Cons. Adj. EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
Ratios
Net D:E
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA(x)
Div. Yield (%)
FCF Yield (%)
8.0
0.6
5.6
2.5
29.4
9.5
0.6
5.5
6.1
36.6
7.8
0.5
4.8
6.1
38.1
0.8
7.1
7.8
39.3
0.7
6.0
7.2
46.5
0.6
7.1
7.7
38.1
82.7
29.6
8.3
35.7
5.1
20.0
71.0
77.6
27.3
7.0
35.2
4.3
-15.5
72.7
86.1
27.9
8.6
32.4
5.2
22.1
75.4
Shareholding pattern (%)
As On
Mar-20 Dec-19
Promoter
37.2
36.2
DII
27.8
26.7
FII
18.6
21.0
Others
16.3
16.1
FII Includes depository receipts
Mar-19
33.0
24.9
26.6
15.5
Kamalanga acquisition on hold; Sticking with cash in uncertain times
JSW Energy (JSWE)’s results reflected an improved performance in the S/A
business YoY, aided by lower interest costs on account of debt reduction. At
a consol level, EBITDA rose 21% in 4QFY20.
The acquisition of Kamalanga has been put on hold given the uncertainty
surrounding recovery in power demand. While we see prudence in JSWE
wanting to hold on to cash in the near term, if growth opportunities do not
emerge or dividend payout is not increased, concerns may arise over capital
allocation. Although, the recent fall in stock price implies the stock remains
attractive.
Maintain Buy
Healthy growth in S/A aided by debt reduction
JSWE 4QFY20 EBITDA increased 21% YoY to INR5.8b (our est.: INR5.6b) on
account of higher short-term sales and lower base of the previous year for
S/A (due to the timing effect in coal prices and tariff, in our view). Short-
term sales volume rose 30% YoY to 736MU. Interest cost declined 10% YoY
to INR2.5b given the debt reduction. PBT came in at INR0.9b (v/s INR0.1b in
4QFY19). For FY20, EBITDA/Adj. PAT was up 4%/20% YoY at INR29.6b/8.3b
respectively. FY20 PAT was aided by lower interest costs (INR1.4b decline).
Hydro generation was up 8% YoY, but EBITDA remained flat YoY due to the
impact of new CERC norms. EBITDA at Barmer was up 3% YoY to INR2.4b.
Reported PAT for 4QFY20 stood at INR1.1b (4QFY19: INR0.04b), supported
by lower taxes and interest costs, and was higher than our est. of INR0.2b
Net debt (incl. acceptances) reduced to INR98.5b (v/s INR113.8b in FY19).
Receivables, though, have stretched to 93 days (v/s 57 days in FY19).
Management commentary: Acquisition on hold
Given the uncertain situation due to lockdown, JSWE has put the acquisition
of the Kamalanga project on hold. As per mgmt., there is low visibility on
whether the transaction would happen.
JSWE is re-evaluating its plans for expansion in the Thermal Generation
space. The company noted it may focus more on additions within
Renewables instead.
The co. is focused on improving collections during this lockdown period.
JSWE noted its receivables have fallen ~15% from March levels.
Healthy cash flow generation, with large tied-up capacity; Maintain Buy
The Kamalanga acquisition has been put on hold given the uncertainty
around recovery in power demand. Furthermore, there has been no
progress on the Ind Barath acquisition. While we see prudence in JSWE
wanting to hold on to cash, if growth opportunities do not emerge or
dividend payout is not increased, concerns may arise over capital allocation.
However, with the recent fall in stock prices, JSWE remains attractive (FY21:
0.6x P/BV; 9.5x P/E).
We estimate 16% decline in PAT for FY21, building in lower merchant
volumes/realizations. However, strong FCF generation would continue,
aided by tied-up capacities. ~80% of JSWE’s 4.4GW capacity is under long-
term PPAs, which generate strong free cash flows. Furthermore, these tied-
up PPAs contribute ~95% to the company’s EBITDA.
Maintain Buy, with TP
of INR64/sh.
;
Aniket Mittal – Research Analyst (Aniket.Mittal@MotilalOswal.com); +91 22 6129 1572
13 February 2020
1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
JSW Energy
Quarterly performance (consolidated) – INR m
Y/E March
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
Margins (%)
Depreciation
Interest
Other Income
PBT before EO expense
Extra-Ord expense
PBT
Tax
Rate (%)
MI and Associates
Reported PAT
Adj PAT
YoY Change (%)
1Q
23,606
5.8
15,843
7,762
32.9
2,899
3,130
673
2,407
0
2,407
236
9.8
-121
2,292
2,292
5.5
FY19
2Q
3Q
24,308 24,217
18.6
21.5
15,694 16,830
8,613
7,387
35.4
30.5
2,933
2,933
3,083
2,948
1,370
701
3,967
2,208
0
0
3,967
2,208
1,125
638
28.3
28.9
-317
109
3,160
1,461
3,160
1,461
6.4
211.8
4Q
19,246
8.4
14,478
4,768
24.8
2,872
2,764
936
68
0
68
126
185.6
-97
39
39
-106.1
1Q
24,122
2.2
16,029
8,093
33.5
2,913
2,698
518
3,000
0
3,000
883
29.4
-327
2,444
2,444
6.6
FY20
2Q
3Q
21,186 19,486
-12.8
-19.5
11,838 13,106
9,348
6,380
44.1
32.7
2,943
2,932
2,722
2,611
1,133
676
4,816
1,513
0 -2,656
4,816
4,170
1,338
125
27.8
3.0
-51
103
3,530
3,941
3,530
1,285
11.7
-12.1
4Q
17,934
-6.8
12,186
5,748
32.1
2,893
2,480
542
917
0
917
26
2.8
-193
1,084
1,084
2,702
FY19
91,376
62,845
28,531
31.2
11,637
11,924
3,680
8,650
0
8,650
2,124
24.6
-426
6,951
6,951
40.2
FY20 vs Est
4QE
(%)
82,727 18,425
-3
-4.3
53,159 12,937
-6
29,569
5,487
5
35.7
29.8
11,681
2,922
-1
10,511
2,773
-11
2,870
473
15
10,247
266
245
-2,656
0
12,904
266
245
2,372
53
18.4
19.8
-468
60
10,999
152
611
8,343
152
611
20.0
294
Source: MOFSL, Company
FY20
Key performance parameters – Volume and realization
Standalone
Units
Realization
Fuel cost
Other cost
EBITDA
EBITDA
Barmer
Units
Realization
EBITDA
EBITDA
Hydro
Units
Realization
EBITDA
EBITDA
Consolidated
Realization
Fuel (ex-hydro)
1Q
MU
INR/kWh
INR/kWh
INR/kWh
INR/kWh
INR m
MU
INR/kWh
INR/kWh
INR m
MU
INR/kWh
INR/kWh
INR m
INR/kWh
INR/kWh
2,992
4.38
3.51
0.27
0.61
1,817
1,651
3.86
1.61
2,650
1,443
2.54
2.34
3,370
3.88
2.99
FY19
2Q
3Q
2,971
5.04
3.70
0.29
1.05
3,110
1,457
4.51
1.85
2,700
689
2.96
2.41
1,660
4.73
3.27
4Q
2,442
4.55
3.53
0.44
0.58
1,426
1,377
4.59
1.70
2,340
397
3.30
2.57
1,020
4.56
3.12
1Q
2,616
4.37
3.14
0.29
0.94
2,459
1,379
6.26
1.82
2,510
1,868
2.09
1.79
3,340
4.11
3.42
FY20
2Q
2,482
4.28
3.12
0.37
0.80
1,975
1,281
4.19
2.14
2,740
2,926
1.77
1.66
4,850
3.16
2.60
3Q
2,555
4.27
3.16
0.29
0.83
2,108
1,271
5.00
2.17
2,760
730
2.95
2.33
1,700
4.28
2.91
4Q
2,298
4.42
2.93
0.45
1.04
2,400
1,346
4.62
1.80
2,420
429
3.54
2.38
1,020
YoY
%
-5.9
-2.8
-17.1
3.6
78.8
68.3
-2.3
0.7
5.8
3.4
8.1
7.4
-7.5
0.0
QoQ
%
-10.1
3.5
-7.4
55.9
26.5
13.8
5.9
-7.7
-17.2
-12.3
-41.2
20.3
2.1
-40.0
2,464
4.87
3.85
0.33
0.69
1,690
1,531
4.18
1.46
2,240
2,675
2.03
1.86
4,980
3.64
3.33
4.40
-3.5
3.0
2.73
-12.3
-6.2
Source: Company, MOFSL
YoY
%
-4.9
QoQ
%
-2.7
Exhibit 1: Key performance parameters – Generation and PLF
Ratnagiri
Deemed PLF
Vijaynagar
Deemed PLF
Barmer
Deemed PLF
Hydro
Deemed PLF
Total
MU
%
MU
%
MU
%
MU
%
1Q
2,032
85.0
960
55.0
1,651
86.0
1,443
50.7
6,086
FY19
2Q
1,559
64.0
905
52.0
1,531
85.0
2,675
94.0
6,670
3Q
1,969
83.7
1,002
57.0
1,457
79.5
689
24.2
5,117
4Q
1,793
80.0
649
37.0
1,377
86.0
397
14.0
4,216
1Q
1,954
81.7
662
38.2
1,379
80.8
1,868
66.3
5,867
FY20
2Q
3Q
1,781
1,753
73.7
80.8
701
802
40.1
45.9
1,281
1,271
60.0
82.3
2,926
730
102.7
25.6
6,701
4,556
4Q
1,705
64.9
593
-8.6
-26.1
31.5
1,346
-2.3
5.9
56.9
429
8.1
-41.2
15.1
4,073
-3.4
-10.6
Source: MOFSL, Company
20 May 2020
2
 Motilal Oswal Financial Services
JSW Energy
Conference call takeaways
Kamalanga acquisition:
Given the ongoing uncertainty due to lockdown, the
acquisition of the GMR Kamalanga project has been put on hold. With the
growth trajectory seemingly bleak, there is low visibility on whether the
transaction would happen. Furthermore, the company is re-evaluating its
expansion plans within Thermal Generation. JSWE did not provide for
advances/guarantees, and no break fee was in place.
Ind Barath acquisition:
Due to lockdown, there has been no progress on the Ind
Barath acquisition. The proposal to the acquisition has been submitted to NCLT.
Lower O&M costs and better fuel costs have helped the company achieve better
profitability. This is the third consecutive year of decrease in O&M costs by the
company.
Net debt (incl. acceptances) for JSWE stood at INR89.5b for FY20. The company
expects a reset in interest rates may reduce its interest cost by 1%.
JSWE estimates capex for plant maintenance to be <INR1b. The company is
concentrating on reducing capex and O&M costs.
JSWE is re-evaluating its plans for expansion in the Thermal Generation space.
The company noted it may focus more on additions within Renewables instead.
The majority of its dues are from the Jodhpur DISCOM. However, JSWE is
focused on improving collections during the lockdown period. The co. noted its
overall receivables were down ~15%, with the overdues amount down ~25%
from March levels.
Fuel
Imp. coal
Imp. coal
Lignite
Hydro
Hydro
Capacity
LT. PPA (MW)
(MW) free
PPA Total
860
316
316
1,200
873
873
1,080
1,080 1,080
300
36
264
300
1,000 120
880 1,000
4,440 156 3,413 3,569
Open
(MW)
544
328
PLF (%)
FY19
FY20
FY21E
50.5
39.5
38.0
76.3
75.3
72.0
70.8
61.9
60.0
50.0
60.0
55.0
52.0
60.2
53.0
56.6
54.4
51.2
Source: MOFSL, Company
Exhibit 2: JSWE's portfolio of assets
S.N. Asset
1
2
3
4
5
Vijaynagar
Ratnagiri
RajWest
Baspa-II
K. Wangtoo
Location
State
Region
K'taka
SR
Maha. WR
Raj.
NR
HP
NR
HP
NR
FY18
53.3
64.0
72.5
50.9
52.2
56.1
872
Valuation and view
The Kamalanga acquisition has been put on hold given the uncertainty around
recovery in power demand. Furthermore, there has been no progress on the Ind
Barath acquisition. While we see prudence in JSWE wanting to hold on to cash, if
growth opportunities do not emerge or dividend payout is not increased,
concerns may arise over capital allocation. However, with the recent fall in stock
price, JSWE remains attractive (FY21: 0.6x P/BV; 9.5x P/E).
We estimate 16% decline in PAT for FY21, building in lower merchant
volumes/realizations. However, strong FCF generation would continue, aided by
tied-up capacities. ~80% of JSWE’s 4.4GW capacity is under long-term PPAs,
which generate strong free cash flows. Furthermore, these tied-up PPAs
contribute ~95% to the company’s EBITDA.
Maintain Buy, with TP of INR64/sh.
20 May 2020
3
 Motilal Oswal Financial Services
JSW Energy
Exhibit 3: SOTP Valuation
NPV of PPAs
Merchant capacity
Jaigarh Power Transco
JSW Steel
Total value
Less: Net Debt
Add: Advance to JSPL
Equity value
No. of shares (mn)
Value per share (INR/sh)
MW
3,569
872
FY20E
153,194
30,503
3,268
9,587
196,551
98,450
3,310
101,411
1,640
FY21E
146,206
30,503
3,268
9,587
189,564
84,703
3,310
104,860
1,640
64
Source: MOFSL, Company
20 May 2020
4
 Motilal Oswal Financial Services
JSW Energy
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
93,802
7.8
36,234
38.6
7,898
28,337
11,375
2,301
-342
18,921
5,150
27.2
276
13,771
13,837
22.2
2015
16,401
58,780
75,180
105,127
2,930
183,784
169,858
38,047
131,810
4,536
2,327
55,430
5,483
11,723
17,376
20,849
10,416
6,062
4,353
45,014
183,784
2016
98,245
4.7
40,261
41.0
8,543
31,719
14,981
2,351
1,500
20,589
5,563
27.0
553
15,026
12,974
-6.2
2016
16,268
80,773
97,041
166,607
4,341
268,002
204,963
8,443
196,520
3,206
9,369
69,834
6,358
29,063
4,327
30,086
17,386
16,874
513
52,448
268,001
2017
82,634
-15.9
33,244
40.2
9,692
23,552
16,848
2,170
0
8,875
2,690
30.3
-106
6,185
6,290
-51.5
2017
16,280
87,405
103,685
158,803
5,801
268,312
206,625
18,167
188,457
5,269
13,599
72,115
5,967
21,828
10,032
34,288
17,577
17,015
562
54,538
268,312
2018
80,490
-2.6
27,625
34.3
9,661
17,965
14,559
4,650
-4,179
3,876
2,532
65.3
564
1,344
4,959
-21.2
2018
16,401
94,697
111,097
136,452
4,280
251,789
210,352
27,977
182,376
2,935
20,782
54,718
5,355
11,512
6,479
31,372
15,420
14,107
1,313
39,298
251,789
2019
91,376
13.5
28,531
31.2
11,637
16,894
11,924
3,680
0
8,650
2,124
24.6
-426
6,526
6,951
40.2
2019
16,409
101,814
118,222
119,225
4,561
241,888
211,303
39,456
171,847
4,000
21,083
55,933
4,547
14,278
5,458
31,650
17,373
16,360
1,014
38,560
241,888
2020
82,727
-9.5
29,569
35.7
11,681
17,888
10,511
2,870
-2,656
12,904
2,372
18.4
-468
10,531
8,343
20.0
2020
16,419
100,037
116,456
107,898
3,705
227,821
211,866
51,137
160,729
3,913
10,990
69,088
6,396
21,032
9,448
32,213
23,298
22,321
977
45,791
227,821
2021E
77,578
-6.2
27,334
35.2
11,753
15,582
9,318
2,745
0
9,009
2,162
24.0
-200
6,847
7,047
-15.5
2021E
16,419
102,884
119,303
97,898
4,245
221,108
213,666
62,889
150,777
3,613
10,990
71,976
6,376
20,192
13,195
32,213
22,645
21,668
1,014
49,330
221,108
(INR m)
2022E
86,139
11.0
27,903
32.4
11,825
16,079
8,141
3,120
0
11,058
2,654
24.0
-200
8,404
8,604
22.1
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 m)
2022E
16,419
107,288
123,707
81,898
4,909
210,075
215,466
74,714
140,752
3,613
10,990
70,491
5,900
18,880
13,499
32,213
22,169
21,192
1,014
48,322
210,075
20 May 2020
5
 Motilal Oswal Financial Services
JSW Energy
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/EBITDA
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios (%)
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Leverage Ratios (%)
Net Debt/Equity (x)
2015
8.4
13.3
45.8
2.0
23.7
14.1
9.0
2.6
7.8
1.7
19.6
13.9
0.5
45.6
21.3
1.2
2015
36,234
-46
1,322
907
-4,489
33,929
-6,772
27,156
647
-47
876
-5,297
-8,124
-11,328
-3,820
0
-23,272
5,359
12,016
17,376
2016
7.9
13.1
59.2
2.0
25.3
8.8
5.3
1.2
6.9
2.9
15.1
12.6
0.4
108.0
23.6
1.7
2016
40,261
0
-4,902
3,006
-2,989
35,376
-349
35,027
883
-35,206
2,472
-32,201
2,768
-14,891
-4,102
0
-16,224
-13,049
17,376
4,327
2017
3.8
9.7
63.2
2.0
52.1
10.6
4.2
0.6
6.5
4.9
6.3
8.6
0.3
96.4
26.4
1.4
2017
33,244
0
6,929
740
-2,387
38,526
-3,715
34,811
810
0
-3,966
-6,871
-5,289
-16,796
-3,927
0
-25,949
5,706
4,327
10,033
2018
3.0
8.9
67.7
2.0
66.1
13.5
4.6
0.6
7.1
4.9
4.6
7.7
0.3
52.2
24.3
1.2
2018
27,625
0
11,796
1,472
-1,556
39,338
-1,208
38,131
2,701
0
-4,709
-3,216
-24,906
-14,318
-1,185
0
-39,676
-3,553
10,032
6,479
2019
4.2
11.3
72.1
2.0
47.2
9.6
3.6
0.6
6.3
4.9
6.1
7.5
0.4
57.0
18.2
1.0
2019
28,531
-9
-3,266
1,395
-2,007
24,644
-2,335
22,310
2,338
0
-494
-491
-13,503
-11,453
-43
0
-24,948
-794
6,479
5,685
2020
5.1
12.2
71.0
2.0
39.3
8.0
3.3
0.6
5.6
4.9
7.1
7.8
0.4
93
28
0.8
2020
29,569
0
-7,743
746
-1,751
20,820
-1,210
19,611
0
0
4,223
3,013
-7,070
-10,511
-1,968
-67
-19,616
4,217
5,458
9,676
2021E
4.3
11.5
72.7
2.0
46.5
9.5
3.6
0.6
5.5
4.9
6.0
7.2
0.4
95
30
0.7
2021E
27,334
0
207
0
-1,622
25,920
-1,500
24,420
0
0
2,745
1,245
-10,000
-9,318
-4,100
0
-23,418
3,747
9,448
13,195
2022E
5.2
12.5
75.4
2.0
38.1
7.8
3.3
0.5
4.8
4.9
7.1
7.7
0.4
80
25
0.6
Cash flow statement
Y/E Mar
EBITDA
FX gain/loss
WC
Others
Direct taxes (net)
CF from Op. Activity
(INR m)
2022E
27,903
0
1,312
0
-1,990
27,225
-1,800
25,425
0
0
3,120
1,320
-16,000
-8,141
-4,100
0
-28,241
304
13,195
13,499
Capex
FCFF
Interest income
Investments in subs/assoc.
Others
CF from Inv. Activity
Borrowings
Finance cost
Dividend
Others
CF from Fin. Activity
(Inc)/Dec in Cash
Opening balance
Closing balance (as per B/S)
20 May 2020
6
 Motilal Oswal Financial Services
JSW Energy
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
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.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL 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 MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL 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 MOFSL 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. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
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.
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 MOFSL & 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 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 MOFSL, 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 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, 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 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
20 May 2020
7
 Motilal Oswal Financial Services
JSW Energy
********************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- 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.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- 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)
- 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.
20 May 2020
8