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Interaction with the CEO
the
18 June 2020
Tata Consumer – Takeaways from conversation with CEO
The Tata group is clearly focused on leveraging its brand and participating in India’s INR30t
consumption story. To realize its vision, the group has not only consolidated Tata Chemical’s
consumer business with Tata Consumer Products (TCP), but has also brought in a new CEO and
MD – Mr. Sunil D'Souza – to steer the company in the right direction. Post taking over the reins
of TCP in Apr’20, we interacted with Mr. D'Souza to learn his long-term views and plans for the
company. Key insights from the discussion highlighted below:
Tata Consumer
Products
Well placed to ride India’s INR30t consumption wave
Mr. Sunil D' Souza joined TCP in order to pursue a bigger role compared to his last
stint as CEO with Whirlpool India. He believes that TCP is well positioned to ride
India’s INR30t consumption wave as it has renewed its focus on the consumer
products’ space due to having (a) a portfolio of market leading and high growth
potential brands, (b) deep understanding of consumers, (c) wide distribution
network of over 2.5m retail outlets, and (d) the legacy of the Tata group.
In Mr. D’Souza’s view, TCP has the key ingredients to rank amongst the top FMCG
companies in India. TCP has (a) one of Tata’s biggest brands, (b) a passionate team,
(c) adequate resources at disposal, and (d) differentiated products. Thus, the focus is
to build TCP in this direction, which is also being supported by the company’s Board
of Directors. He further says that the company is aiming for double-digit revenue
growth along with margin expansion.
To evaluate inorganic acquisition from financial lens as well
The company currently has net cash of INR13b with expectation of free cash flow
generation of INR7-8b for FY21E. Thus, the cumulative cash balance is likely to reach
INR20b by end-FY21E. According to Mr. D’Souza, these funds would be deployed
toward organic/inorganic acquisitions in the adjacent category of the food and
beverages space (in the near term).
He further highlighted that the company is in the process of clearly defining
acquisition opportunities. Due to the COVID-19 crisis, many acquisition
opportunities are likely to come up; however, TCP plans to remain selective. An
acquisition would be considered only when the target company brings in a brand,
sourcing capability, technology or distribution to the table. Additionally, TCP would
also evaluate the financial angle of an acquisition – whether it is RoCE/RoE/margin
accretive – which in turn would create higher value for the company.
As an example, Mr. D’Souza cites TCP’s acquisition in FY20 of Dhunseri Tea for INR1b
(houses brands like
Lal Ghoda
and
Kala Ghoda)
– a prominent player in Rajasthan.
With this acquisition, TCP could enter into the Rajasthan market with its own
product, which was not the case earlier, he says.
Currently, TCP’s internal IRR hurdle rate for any new project is >20%.
Mr Sunil D'Souza
CEO & MD
Mr. D’Souza took over the
reins of Tata Consumer
Products (TCP) as MD & CEO
from Apr’20. Previously, he
has served as the MD of
Whirlpool India Limited. Mr.
D’Souza has worked with
PepsiCo Inc. for 15 years – his
last assignment was as
General Manager of the
VIMAPS region, Malaysia. He
has also worked with Coca
Cola, Standard Chartered Bank
and Brooke Bond Lipton India
(now HUL) in various
capacities. He holds a
Bachelor's degree in
Engineering and a Post-
Graduate diploma in
Management from IIM,
Kolkata.
Motilal Oswal values your
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Brokers Poll 2020 for India
Research, Sales and
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Near-term focus to set the platform right, which should unleash cost/revenue synergies
By setting the platform right, TCP has expanded its sales and distribution reach to 2.5m retail outlets (v/s 2m
pre-merger), which Mr. D’Souza believes would increase further as the distribution multiplier comes into play.
Retail outlet reach of the company is currently lower as compared to other FMCG companies, and thus,
provides enough room for an increase, he adds.
According to Mr. D’Souza, TCP is targeting to realize cost synergies of INR600-700m and the company is well on
track to achieve the same.
Sumant Kumar - Research Analyst
(Sumant.Kumar@motilaloswal.com); +91 22 6129 1569
Research Analyst: Darshit Shah
(Darshit.Shah@MotilalOswal.com); +91 22 6129 1546;
Yusuf Inamdar
(Yusuf.Inamdar@motilaloswal.com); +91 22 6129 1553
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
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the
Additionally, with the combined scale (Tata Chemicals and TCP), he believes the company would drive
efficiencies including superior terms of trade with channel partners, supply chain opportunities and proficiency
in areas such as marketing and packaging.
Growth levers for the future
Currently, the company has two strong legs in the India business –
Tata Tea
and
Tata Salt
– wherein TCP is
targeting double-digit growth, driven by cross-selling between Tata Chemicals and TCP’s distribution channel.
TCP is building its third leg of growth –
Tata Sampann
– which houses pulses and spices. The pulses and spices
category has a higher share of unbranded/unorganized players. Thus, Mr. D’Souza expects growth to come in by
grabbing market share from such players and increasing distribution reach.
He further believes that driving conversion from unbranded/unorganized items to branded products is built into
the DNA of the organization. The company has a proven track record of creating category-defining brands, like
Tata Tea
and
Tata Salt.
While the core categories still offer large headroom for growth, the company is
witnessing similar opportunities in the staples and packaged foods space too, where
Tata Sampann
is a mega
brand in the making, he adds.
According to Mr. D’Souza, the online channel can act as a key platform, which could initially be used to check
the acceptance of new products; consequently, these products can be sold through the existing channels, he
concurs.
Valuation and view
The Tata group is clearly focused on leveraging its brand and participating in India’s consumption story of
INR30t, for which it has merged Tata Chemical’s consumer business with TCP. The merger is in sync with the
Tata group’s focus to create a single FMCG-focused company. It also offers multiple synergies, including higher
outlet coverage, focused new product development, stronger cash flow generation and scale efficiencies.
Moreover, in the short-to-medium term, the new MD and CEO, Mr. Sunil D'Souza, has his plans clearly laid out –
his focus is on setting up the right sales and distribution channels and driving cost efficiencies. We value the
stock on SOTP basis to arrive at a target price of INR431. Maintain
Buy.
18 June 2020
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Exhibit 1:
Market skewed toward In-the-Kitchen Segment
Exhibit 2:
Rising affluence of households
the
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 3:
TCP’s product launch over long term
Source: Company, MOFSL
Exhibit 4:
TCP FY20 segment wise revenue mix (incl Tata
Chemicals consumer biz.)
Others, 10%
India
beverages,
35%
Exhibit 5:
TCP FY20 region wise revenue mix (incl Tata
Chemicals consumer biz.)
Others,
17%
India, 56%
International
beverages,
34%
USA, 16%
India foods,
21%
Source: Company, MOFSL
UK, 11%
Source: Company, MOFSL
18 June 2020
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Exhibit 6:
Revenue to grow at 9% CAGR over FY20-22
Revenue (INRb)
Growth (%)
32.9
8.0
10.1
the
Exhibit 7:
EBITDA margins to expand 130bp over FY20-22
EBITDA (INRb)
11.7
12.3
Margin (%)
13.4
10.8
14.0
14.8
3.3
(17.0)
79.9
FY15
66.4
FY16
2.2
0.5
6.4
9.7
9.9
67.8
FY17
68.2
FY18
72.5
FY19
96.4
104.0 114.5
7.7
FY15
6.5
FY16
7.9
FY17
8.4
FY18
7.9
FY19
12.9
14.5
16.9
FY20* FY21E* FY22E*
Source: Company, MOFSL
FY20* FY21E* FY22E*
Source: Company, MOFSL
Exhibit 8:
Adj PAT to grow at 18% CAGR over FY20-22
Adj PAT (INRb)
Growth (%)
66.4
34.5
17.3
(3.6)
3.8
FY15
(13.4)
3.3
FY16
3.8
FY17
5.2
FY18
(14.6)
4.4
FY19
7.3
8.5
10.3
15.7
Exhibit 9:
Operating cash flow trend
Operating CF - INR b
7.4
21.3
4.2
1.2
FY15
FY16
FY17
FY18
FY19 FY20* FY21E* FY22E*
Source: Company, MOFSL
10.8
7.5
10.7
3.6
2.6
FY20* FY21E* FY22E*
Source: Company, MOFSL
* Performance includes Tata Chemicals consumer business
Exhibit 10:
Valuation methodology
EV/EBITDA
India Tea (TCP Standalone)
Coffee India (ex-Starbucks) @57%
Coffee Overseas
Consumer (Salt & others)
Overseas tea (Tetley UK)
DCF
Starbucks JV
Price/Sales
NourishCo (JV with Pepsi) & others
Enterprise value
Less: Net debt
Market value (INR m)
No. of shares (m)
Target price (INR)
CMP (INR)
Upside (%)
EBITDA
5,404
606
2,334
5,413
2,053
Multiple (x)
26
10
10
28
10
EV
1,40,502
6,063
24,278
1,51,563
20,534
25,532
2,000
4
8,000
3,76,472
-21,099
3,97,571
922
431
369
17%
Source: MOFSL
18 June 2020
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Exhibit 11:
One year fwd P/E (x)
160.0
120.0
80.0
40.0
0.0
P/E (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
122.8
77.4
94.4
60.4
40.0
87.6
the
Exhibit 12:
One year fwd P/B (x)
16.0
12.0
8.0
4.0
0.0
7.8
P/B (x)
Min (x)
Avg (x)
+1SD
11.2
Max (x)
-1SD
14.9
9.5
4.5
7.0
Source: MOFSL
Source: MOFSL
18 June 2020
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the
Financials and valuations
Consolidated Income Statement
Y/E March
Net Sales
Change (%)
Gross Profit
Margin (%)
Other operating exp.
EBITDA
Margin (%)
Depreciation
Net Interest
Other income
PBT before EO
EO income/(exp.)
PBT after EO
Tax
Rate (%)
Reported PAT
Minority and Associates
Adjusted PAT
Change (%)
2015
79,934
3.3
41,561
52.0
33,812
7,749
9.7
1,331
819
700
6,299
-1,300
4,999
2,155
43.1
2,844
365
3,778
-3.6
2016
66,365
-17.0
30,149
45.4
23,606
6,543
9.9
1,168
1,169
820
5,026
-3,329
1,698
2,000
117.8
-302
-247
3,274
-13.4
2017
67,796
2.2
32,180
47.5
24,269
7,911
11.7
1,260
915
831
6,566
53
6,619
1,983
30.0
4,636
742
3,841
17.3
2018
68,154
0.5
31,160
45.7
22,771
8,389
12.3
1,160
428
942
7,743
-211
7,531
1,859
24.7
5,673
717
5,167
34.5
2019
72,515
6.4
32,439
44.7
24,580
7,859
10.8
1,226
525
1,571
7,680
-333
7,347
2,609
35.5
4,738
656
4,415
-14.6
2020*
96,374
32.9
42,267
43.9
29,346
12,922
13.4
2,417
779
1,116
10,842
-2,748
8,094
2,742
33.9
5,352
754
7,346
66.4
2021E*
1,04,040
8.0
45,309
43.5
30,782
14,527
14.0
2,503
769
1,060
12,316
0
12,316
3,448
28.0
8,867
365
8,502
15.7
(INR Million)
2022E*
1,14,512
10.1
49,669
43.4
32,778
16,891
14.8
2,577
769
1,113
14,659
0
14,659
4,105
28.0
10,554
240
10,314
21.3
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Goodwill & Intangibles
Investments
Curr. Assets
Inventories
Account Receivables
Cash and Bank Balance
Others
Curr. Liability & Prov.
Account Payables
Other liabilities
Provisions
Net Curr. Assets
Def. tax liability
Appl. of Funds
2015
618
54,297
54,915
8,762
13,240
76,918
23,904
13,608
10,296
459
38,921
6,178
38,710
16,253
6,161
5,485
10,811
16,624
7,594
4,089
4,942
22,086
1,022
76,918
2016
631
61,841
62,472
8,618
13,541
84,630
24,033
14,511
9,523
394
37,096
11,926
40,009
16,290
5,924
6,744
11,051
13,532
6,773
2,776
3,983
26,477
786
84,630
2017
631
62,024
62,655
9,195
7,866
79,716
23,711
13,650
10,060
632
34,979
13,534
36,309
14,530
5,925
7,412
8,444
14,345
7,378
3,389
3,578
21,965
1,454
79,716
2018
631
69,685
70,316
10,090
10,676
91,082
25,424
15,181
10,244
1,352
37,235
6,431
49,343
14,483
6,483
18,067
10,310
13,525
7,057
3,562
2,906
35,818
-3
91,082
2019
631
72,686
73,317
10,277
11,283
94,877
27,689
16,407
11,282
4,244
37,851
6,045
49,385
16,099
6,806
16,168
10,313
12,887
6,649
4,221
2,017
36,498
1,043
94,877
2020*
922
1,37,227
1,38,149
10,925
11,825
1,60,898
59,111
18,824
40,288
954
73,338
4,893
65,258
17,120
9,224
24,550
14,364
20,799
9,440
8,603
2,756
44,459
3,033
1,60,898
2021E*
922
1,42,412
1,43,333
10,929
11,825
1,66,087
60,611
21,326
39,285
954
73,338
4,532
73,144
21,378
9,896
27,506
14,364
22,132
10,773
8,603
2,756
51,011
3,033
1,66,087
(INR Million)
2022E*
922
1,49,077
1,49,998
10,933
9,325
1,70,256
62,611
23,903
38,708
954
73,338
4,297
79,210
23,530
10,892
30,424
14,364
23,217
11,858
8,603
2,756
55,993
3,033
1,70,256
18 June 2020
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the
Financials and valuations
Cash flow statement
Y/E March
EBITDA
Prov. & FX
WC
Others
Direct taxes (net)
CF from Op. Activity
Capex
FCFF
Interest/dividend
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)
2015
7,749
-492
-1,320
-71
-1,687
4,178
-1,792
2,386
611
-932
60
-2,053
-1,311
-820
-1,615
-178
-3,924
-1,798
7,283
5,485
2016
6,543
-132
-2,719
-190
-2,342
1,160
-1,545
-385
697
-509
4,273
2,917
-796
-663
-1,871
512
-2,818
1,259
5,485
6,744
2017
7,911
22
1,485
100
-2,106
7,412
-1,382
6,030
574
-280
2,503
1,415
-4,848
-615
-1,890
-805
-8,158
668
6,744
7,412
2018
8,389
-14
-1,389
-438
-2,992
3,556
-3,588
-32
485
373
10,133
7,403
2,160
-282
-2,118
-65
-304
10,655
7,412
18,067
2019
7,859
0
-2,347
-333
-2,609
2,571
-3,000
-429
1,571
0
0
-1,429
0
-525
-1,893
-623
-3,041
-1,899
18,067
16,168
2020*
12,922
0
-649
1,292
-2,742
10,822
-1,500
9,322
1,116
0
0
-384
0
-779
-2,986
1,709
-2,056
8,382
16,168
24,550
2021E*
14,527
0
-3,597
0
-3,448
7,482
-1,500
5,982
1,060
0
0
-440
0
-769
-3,318
0
-4,086
2,956
24,550
27,506
2022E*
16,891
0
-2,063
0
-4,105
10,723
-2,000
8,723
1,113
0
0
-887
-2,500
-769
-3,650
0
-6,918
2,918
27,506
30,424
Ratios
Y/E March
2015
2016
Basic (INR)
EPS
4.1
3.6
Cash EPS
5.5
4.8
BV/Share
59.6
67.8
DPS
2.3
2.3
Payout (%)
48.9
NA
Dividend yield (%)
1.5
1.9
Valuation (x)
P/E
90.0
103.9
Cash P/E
66.6
76.6
P/BV
6.2
5.4
EV/Sales
4.1
4.9
EV/EBITDA
41.9
49.6
Dividend Yield (%)
1.5
1.9
FCF per share
3.9
-0.6
Return Ratios (%)
RoE
6.7
5.6
RoCE
8.8
7.6
RoIC
9.7
8.2
Working Capital Ratios
Fixed Asset Turnover (x)
7.8
7.0
Asset Turnover (x)
1.0
0.8
Debtor (Days)
28
33
Creditor (Days)
35
37
Inventory (Days)
74
90
Leverage Ratio (x)
Debt/Equity
0.1
0.1
* Performance includes Tata Chemicals consumer business
2017
4.2
5.5
68.0
2.3
30.6
1.5
88.5
66.7
5.4
4.8
41.0
1.5
9.6
6.1
9.0
10.6
6.7
0.9
32
40
78
0.0
2018
5.6
6.9
76.3
2.4
26.1
0.9
65.8
53.7
4.8
4.8
38.7
0.9
-0.1
7.8
9.4
11.7
6.7
0.7
35
38
78
-0.1
2019
4.8
6.1
79.6
2.5
33.3
1.2
77.0
60.3
4.6
4.5
41.3
1.2
-0.7
6.1
8.6
9.8
6.4
0.8
34
33
81
-0.1
2020*
8.0
10.6
149.9
2.7
46.5
0.9
46.3
34.8
2.5
3.4
25.1
0.9
10.1
6.9
8.5
11.5
2.4
0.6
35
36
65
-0.1
2021E*
9.2
11.9
155.5
3.0
31.2
1.4
40.0
30.9
2.4
3.1
22.3
1.4
6.5
6.0
7.8
10.1
2.6
0.6
35
38
75
-0.1
2022E*
11.2
14.0
162.8
3.3
28.8
1.6
33.0
26.4
2.3
2.8
19.2
1.6
9.5
7.0
9.0
10.6
3.0
0.7
35
38
75
-0.1
18 June 2020
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NOTES
the
18 June 2020
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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
the
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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.
the
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