1 August 2020
1QFY21 Results Update | Sector: Healthcare
Laurus Labs
Estimate change
TP change
Rating change
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CMP: INR934
TP: INR1215 (+30%)
Metamorphosis underway
Buy
Sharp ramp-up in earnings led by FDF/API and higher operating leverage
Laurus Labs (LAURUS) delivered all-time high quarterly PAT at INR1.7b. It is
more than average of annual PAT over FY17-20. The company expects this
to be sustainable on the back of diversified portfolio, increased customer
base, addition of capacity for API/formulation and supported with better
operating leverage.
After a long wait, the efforts towards product development/building
manufacturing base are reflected in the phenomenal financial performance.
In fact, 1QFY21 redefines the earnings assessment over near to medium
term. Aligning with the new guidance, we raise our estimates to 2x our
previous estimates for FY21/FY22. Our target PE remains unchanged and
target price of INR1,215 at 17x 12M forward earnings factors just the
earnings upgrade. Sustainability of growth momentum in FY22 can drive
further re-rating. Reiterate Buy.
LAURUS’ 1QFY21 revenues grew at a robust rate of 77% YoY to INR9.7b
(est.: INR7.2b), led by Formulations (FDF; 36% of sales) revenue of
INR3.5b v/s INR1.1b YoY, Other API (14% of sales) revenue of INR1.3b v/s
INR440m YoY, 37% YoY growth in CDMO (10% of sales), and 19% YoY
growth in Anti-Viral API (35% of sales).
FDF sales growth was led by the execution of orders from Global Fund and
PEPFAR, and country-specific tenders in the ARV segment; increased
volumes of commercialized ANDAs; and (partly) the launch of HCQS in US.
CDMO sales growth was led by the commencement of the commercial
supply of four products, in addition to better traction in existing products.
The gross margin (GM) was up 410bp YoY to 54.2% on a superior product
mix.
The EBITDA margin expanded at a higher rate of 1,400bp YoY to 28.6%
(est.: 20%) on better GMs and controlled opex (as % of sales; employee
cost / other expenses down 310bp/620bp YoY).
EBITDA came in at INR2.8b (est.: INR1.7b), 3.5x YoY.
PAT grew almost 14x YoY to INR1.7b on strong sales growth, superior
margins, reduced interest outgo, and lower tax rate.
Based on growth visibility in Formulations as well as the API segment,
LAURUS is confident of sustaining the momentum in earnings.
HCQS sales reflected in Formulations/API are less than 5% of sales and GM
at the consolidated level.
Overall growth for the quarter was led largely by higher volume off-take.
Laurus has guided to clock revenues of INR13.5b in the ARV-API segment for
FY21, led by better off-take in Tenofovir, Lamivudine, and DTG and slower
decline in Efavirenz sales.
LAURUS would incur capex of INR3.5b for FY21 (spent INR910m in 1QFY21)
toward debottlenecking and brownfield expansions.
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
LAURUS IN
106
100.1 / 1.1
944 / 298
72/125/177
352
Financials & valuations (INR b)
Y/E MARCH
FY20 FY21E FY22E
Sales
28.3 41.4 47.1
EBITDA
5.6 11.5 12.7
Adj. PAT
2.6
6.9
7.5
EBIT Margin (%)
13.3 22.7 21.8
Cons. Adj. EPS (INR)
24.1 65.4 70.9
EPS Gr. (%)
132.6 170.9
8.5
BV/Sh. (INR)
172.5 231.3 295.1
Ratios
Net D:E
0.6
0.4
0.1
RoE (%)
15.1 32.4 27.0
RoCE (%)
12.3 23.7 21.7
Payout (%)
10.0 10.0 10.0
Valuations
P/E (x)
39.0 14.4 13.3
EV/EBITDA (x)
19.4
9.4
8.2
Div. Yield (%)
0.2
0.6
0.6
FCF Yield (%)
0.8
2.7
5.8
EV/Sales (x)
3.9
2.6
2.2
Strong beat on estimates
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Jun-20 Mar-20 Jun-19
32.1
32.0
32.8
8.8
31.6
32.2
16.1
11.3
12.4
43.0
25.1
22.6
Highlights from management commentary
FII includes depository receipts
Tushar Manudhane - Research Analyst
(Tushar.Manudhane@MotilalOswal.com)
Research Analyst: Hitakshi Chandrani
(Hitakshi.Chandrani@motilaloswal.com);
Bharat Hegde
(Bharat.Hegde@motilaloswal.com)
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
Laurus Labs
Valuation and view
LAURUS has shown strong improvement in performance, with PAT doubling to
INR2.5b in FY20 and coming in at INR1.7b in 1QFY21.
We expect 2.7x FY20 earnings for FY21, primarily led by a doubling of
formulation sales, 30% YoY growth in each API and CDMO segment supported
with ~780bp margin expansion. We double our earnings estimate to
INR65/INR71 for FY20/FY21 and value LAURUS at 17x 12M forward earnings to
arrive at TP of INR1,215.
We remain positive on Laurus on the back of superior execution across revenue
segments, resulting in expansion of ROE to 27% (from 15% in FY20) and
sufficient levers to sustain the earnings momentum over the medium term.
Reiterate
Buy.
(INR m)
FY20
Consolidated – Quarterly Earnings Model
Y/E March
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
YoY Change (%)
Margins (%)
Depreciation
EBIT
YoY Change (%)
Margins (%)
Interest
Other Income
PBT before EO expense
Extra-Ord expense
PBT
Tax
Rate (%)
Reported PAT
Adj PAT
YoY Change (%)
Margins (%)
1Q
5,506
2.1
4,705
801
-6.4
14.6
458
343
-27.6
6.2
225
45
162
0
162
43
26.4
119
119
-40.8
2.2
FY20
2Q
3Q
7,124 7,296
21.1
37.8
5,762 5,863
1,362 1,433
49.4
63.3
19.1
19.6
478
476
884
957
72.2 112.7
12.4
13.1
256
208
14
19
642
768
0
0
642
768
92
82
14.4
10.7
549
686
549
686
98.6 284.9
7.7
9.4
4Q
1Q
8,391 9,743
32.1
77.0
6,505 6,960
1,886 2,783
68.4 247.4
22.5
28.6
461
488
1,426 2,295
108.1 569.6
17.0
23.6
207
151
17
71
1,236 2,215
0
0
1,236 2,215
166
497
13.4
22.4
1,070 1,718
1,070 1,718
147.8 1,337.7
12.8
17.6
FY21E
FY21E
2QE
3QE
4QE
10,312 10,513 10,845 28,317 41,414
44.7
44.1
29.2
23.6
46.2
7,535 7,633 7,813 22,672 29,942
2,777 2,880 3,032 5,645 11,472
103.9 101.0
60.7
50.0 103.2
26.9
27.4
28.0
19.9
27.7
495
510
569 1,873 2,062
2,282 2,370 2,463 3,773 9,410
158.2 147.6
72.8
77.8 149.4
22.1
22.5
22.7
13.3
22.7
170
180
208
896
709
35
25
35
59
166
2,147 2,215 2,290 2,936 8,866
0
0
0
0
0
2,147 2,215 2,290 2,936 8,866
462
481
512
383 1,951
21.5
21.7
22.3
13.1
22.0
1,685 1,734 1,779 2,553 6,916
1,685 1,734 1,779 2,553 6,916
206.7 152.9
66.2 132.6 170.9
16.3
16.5
16.4
9.0
16.7
FY21
1QE
8,386
52.3
6,710
1,676
109
20.0
465
1,211
253
14.4
200
20
1,031
0
1,031
227
22.0
805
805
573
10
vs Est
(%)
16.2
3.7
66.0
89
63.1
114.7
114.7
119.0
113.5
113.5
Key performance Indicators (Consolidated)
Y/E March
FY20
INRm
1Q
2Q
3Q
API
3,720 4,666 3,584
YoY Change (%)
(19.3) (10.7) (19.6)
Custom Synthesis
730
850
780
YoY Change (%)
9.1
13.8
44.5
Formulation
1,060 1,599 2,921
YoY Change (%)
1978.4 7168.2 1429.3
Cost Break-up
RM Cost (% of Sales)
49.9
50.5
49.4
Staff Cost (% of Sales)
14.6
12.3
12.1
R&D Expenses(% of Sales)
7.6
5.4
5.5
Other Cost (% of Sales)
20.4
17.8
18.2
Gross Margins(%)
50.1
49.5
50.6
EBITDA Margins(%)
14.6
19.1
19.6
EBIT Margins(%)
6.2
12.4
13.1
4Q
4,239
(14.0)
1,480
38.5
2,673
847.9
49.8
10.5
5.5
16.8
50.2
22.5
17.0
1QE
5,220
40.3
1,000
40.3
3,520
232.1
45.8
11.5
4.3
14.2
54.2
28.6
23.6
FY21E
2QE
3QE
5,491 5,395
17.7
50.5
1,144 1,174
60.0
25.0
3,678 3,943
130.0
35.0
46.2
12.2
3.7
14.5
53.8
26.9
22.1
46.2
12.3
3.8
14.0
53.8
27.4
22.5
FY20
4QE
5,100
20.3
1,509
(1.9)
4,127
54.4
47.0
11.2
5.5
14.1
53.0
28.0
22.7
16,094
(14.5)
3,970
5.7
8,253
1411.5
49.9
12.2
6.0
18.0
50.1
19.9
13.3
FY21E
21,318
32.5
4,827
30.0
15,268
85.0
46.3
11.8
4.1
14.2
53.7
27.7
22.7
FY21
1QE
3,494
(5.5)
738
25.0
2,756
160.0
49.4
12.2
5.8
19.0
50.6
19.1
12.7
1 August 2020
2
 Motilal Oswal Financial Services
Laurus Labs
Other highlights from the call
Based on the USFDA approval for TLE 400 / TLE 600, it is in the process of getting
its products approved in ROW markets; thus, commercialization is expected in
the coming quarters.
Supported by a long-term partnership with a leading Generics player in the EU,
LAURUS has better visibility in the Formulations business from the EU market
over FY21 and beyond.
Laurus has maintained its market share in Pregabalin for the US market.
While cash flow expected to increase owing to such a strong performance, the
company intends to plow back cash for growth rather than debt reduction.
It plans to increase overall API manufacturing capacity by 20% over 12 months
and Formulations capacity by 80% over 15–18 months on the expectation of an
increase in demand.
Key exhibits
Exhibit 1: Revenue up 77% YoY, driven by Formulations
Revenue (INRb)
Growth (%)
77.0
5.9
9.2
5.3
10.5
6.4
13.4
2.1
7.1
5.5
21.1
7.3
8.4
9.7
Custom
Synthesis
10%
Source: MOFSL, Company
Onco-API
5%
Other APIs
14%
Source: MOFSL, Company
37.8
32.1
Exhibit 2: FDF sales share increases to 36% (19% in 1QFY20)
1QFY21
FDF
36%
Antiviral-
API
35%
5.4
9.7
Exhibit 3: API sales grow 40% YoY
API Revenue (INRb)
4.6
5.2
4.5
4.9
3.7
4.7
3.6
5.2
4.2
Exhibit 4: ARV-API sales grew 19% YoY
Anti-viral API sales (INR b)
4.0
4.2
3.4
3.6
2.8
3.2
2.1
3.4
2.7
Source: MOFSL, Company
Source: MOFSL, Company
1 August 2020
3
 Motilal Oswal Financial Services
Laurus Labs
Exhibit 5: Superior product mix, favorable currency drive
GM…
Gross Margin (%)
54.2
50.1
45.2
46.5
46.4
46.2
49.5
50.6
50.2
Exhibit 6: …controlled cost also drives EBITDA margin
EBITDA Margin (%)
28.6
15.9
16.6
22.5
15.5
17.6
19.1
14.6
19.6
Source: MOSL, Company
Source: MOSL, Company
Valuation and view
Strengthening momentum in FDF
Supported by strong product development capabilities, order procurement from
institutional agencies, and capacity building to support manufacturing in FDF,
LAURUS has aggressively ramped-up revenue in the FDF segment to INR3.5b for
1QFY21 from INR140m in 4QFY18. Revenue has been driven across segments (ARV /
Generic Formulations to the US and EU).
The company continues to add levers within the FDF segment.
In addition to DTG, LAURUS has received approval for TLE 400 / TLE 600 from
the USFDA and is in the process of obtaining regulatory approval in ROW
markets.
It has filed 26 ANDAs with the USFDA and received approval for 8 ANDAs (final
approval) and 5 ANDAs (tentative approval).
It has secured contract manufacturing opportunities with a leading Generics
player in the EU on a long-term basis, adding further growth visibility in the FDF
segment.
Accordingly, we expect a 44% CAGR in LAURUS’ FDF sales over FY20–22.
Customer additions, increased product offerings to drive growth in
Synthesis segment
Based on its strong chemistry-related capabilities, the company generated INR1b
(+37% YoY) in revenue in the Synthesis segment for 1QFY21 through contract
research and manufacturing services. It has integrated projects from the pre-clinical
to commercial stages from large global innovators. In addition to acquiring sizeable
business from Aspen in this segment, LAURUS has commenced the commercial
supply of two more products, offering better visibility for growth. We expect the
company to post a sales CAGR of 31% in the segment over FY20–22.
Positive API outlook
The API business posted a strong quarter with growth of 40% YoY. The ARV-API
business witnessed traction on account of Tenofovir, Lamivudine, and Dolutegravir.
The management alluded to stability in Efavirenz sales owing to market share gains.
The addition of new molecules is expected to drive a robust 46% CAGR in the Other
API segment. Accordingly, we expect the API business to have a 20% CAGR in the API
segment over FY20–22.
1 August 2020
4
 Motilal Oswal Financial Services
Laurus Labs
Return ratios on the path to strong recovery
We expect 2.7x FY20 earnings for FY21, primarily led by a doubling of
formulation sales, 30% YoY growth in each API and CDMO segment supported
with ~780bp margin expansion.
Accordingly, we expect RoE to improve to 32% in FY21 v/s 15.1% in FY20.
We double our earnings estimate to INR65/INR71 for FY20/FY21 and value
LAURUS at 17x 12M forward earnings to arrive at TP of INR1,215. Reiterate
Buy.
Exhibit 8: P/B chart
Max (x)
-1SD
P/B (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
Exhibit 7: P/E chart
60
45
30
P/E (x)
Min (x)
Avg (x)
+1SD
4.5
4
3.5
3
2.5
2
1.5
4.3
3.6
49.7
39.0
26.5
22.7
14.0
11.0
2.8
2.0
3.4
15
0
1.6
Source: MOFSL, Company, Bloomberg
Source: MOFSL, Company, Bloomberg
1 August 2020
5
 Motilal Oswal Financial Services
Laurus Labs
Financials and valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Preference Capital
Total Reserves
Net Worth
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
FY15
13,266
14.4
11,264
84.9
2,002
15.1
615
1,387
1,062
341
666
0
666
-15
-2.3
-2
683
683
-29.7
5.2
FY16
17,776
34.0
14,154
79.6
3,622
20.4
864
2,758
1,111
44
1,690
0
1,690
349
20.6
4
1,337
1,337
95.7
7.5
FY17
19,046
7.1
14,970
78.6
4,076
21.4
1,060
3,016
999
334
2,352
0
2,352
439
18.7
11
1,903
1,903
42.3
10.0
FY18
20,690
8.6
16,557
80.0
4,133
20.0
1,255
2,879
796
292
2,374
0
2,374
698
29.4
0
1,676
1,676
-11.9
8.1
FY19
22,919
10.8
19,155
83.6
3,764
16.4
1,642
2,122
882
162
1,402
-204
1,198
260
21.7
0
938
1,097
-34.5
4.8
FY20
28,317
23.6
22,672
80.1
5,645
19.9
1,873
3,773
896
59
2,936
0
2,936
383
13.1
0
2,553
2,553
132.6
9.0
FY21E
41,414
46.2
29,942
72.3
11,472
27.7
2,062
9,410
709
166
8,866
0
8,866
1,951
22.0
0
6,916
6,916
170.9
16.7
(INR m)
FY22E
47,144
13.8
34,415
73.0
12,729
27.0
2,458
10,271
829
189
9,630
0
9,630
2,128
22.1
0
7,502
7,502
8.5
15.9
(INR m)
FY22E
1,609
0
29,599
31,208
9,143
-739
39,611
28,766
11,175
17,591
97
1,927
34
34,836
14,307
12,014
4,944
3,571
14,874
9,345
4,583
945
19,962
39,611
FY15
155
666
6,419
7,241
8,211
113
15,565
9,865
1,855
8,010
0
1,097
74
9,757
4,755
2,851
589
1,562
3,373
2,308
922
143
6,383
15,565
FY16
158
666
7,744
8,568
10,277
-549
18,296
11,063
853
10,210
0
696
70
10,710
4,871
4,449
288
1,103
3,390
2,476
770
144
7,320
18,296
FY17
1,058
0
12,247
13,304
8,417
-699
21,023
14,088
1,886
12,202
97
1,433
34
12,069
5,090
5,676
41
1,262
4,812
2,631
1,988
193
7,257
21,023
FY18
1,060
0
13,766
14,826
9,649
-529
23,946
17,851
3,141
14,711
97
1,632
34
13,165
5,848
5,706
31
1,580
5,692
3,123
2,316
253
7,473
23,946
FY19
1,064
0
14,520
15,584
10,030
-534
25,081
20,976
4,783
16,193
97
1,096
34
15,357
6,819
7,099
30
1,408
7,697
4,883
2,449
365
7,660
25,081
FY20
1,609
0
16,629
18,238
10,123
-739
27,621
23,821
6,655
17,166
97
672
34
19,129
9,052
7,914
17
2,145
9,477
6,156
2,753
568
9,652
27,621
FY21E
1,609
0
22,850
24,459
10,143
-739
33,863
25,859
8,717
17,142
97
1,634
34
27,942
12,201
11,121
1,484
3,137
12,987
8,130
4,026
831
14,955
33,863
1 August 2020
6
 Motilal Oswal Financial Services
Laurus Labs
Financials and valuations
Ratios
Y/E March
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY15
6.5
12.3
68.5
0.0
0.0
145.8
76.7
13.8
8.1
53.6
0.0
-42.3
12.6
14.4
14.0
131
78
64
2.9
1.3
1.0
FY16
12.4
20.6
81.0
0.5
4.4
75.7
45.7
11.6
6.2
30.3
0.0
-13.6
16.9
13.0
14.6
100
91
51
3.2
2.5
1.2
FY17
17.8
27.8
125.8
1.5
10.0
53.0
33.9
7.5
5.7
26.5
0.2
5.2
17.4
13.4
13.5
98
109
50
2.5
3.0
0.6
FY18
15.8
27.7
140.2
0.0
0.0
59.4
34.0
6.7
5.3
26.4
0.0
-7.1
11.9
9.7
9.7
103
101
55
2.3
3.6
0.6
FY19
10.4
25.9
147.4
0.0
0.0
90.8
36.4
6.4
4.8
29.1
0.0
4.9
7.2
7.1
7.2
109
113
78
2.0
2.4
0.6
FY20
24.1
41.8
172.5
2.0
10.0
39.0
22.5
5.5
3.9
19.4
0.2
7.9
15.1
12.3
12.9
117
102
79
2.0
4.2
0.6
FY21E
65.4
84.9
231.3
5.5
10.0
14.4
11.1
4.1
2.6
9.4
0.6
25.4
32.4
23.7
25.5
108
98
72
2.2
13.3
0.4
FY22E
70.9
94.2
295.1
5.9
10.0
13.3
10.0
3.2
2.2
8.2
0.6
55.4
27.0
21.7
25.2
111
93
72
2.3
12.4
0.1
FY15
666
615
862
-168
-2,507
-531
-116
-647
-3,821
-4,468
-148
112
-3,858
2,944
2,745
-828
0
0
4,861
356
232
588
FY16
1,690
864
1,038
-333
-1,544
1,716
103
1,820
-3,262
-1,443
140
-34
-3,156
3
2,063
-1,033
0
2
1,035
-301
588
287
FY17
2,352
1,060
931
-501
-525
3,317
3
3,320
-2,774
546
-113
-143
-3,030
2,860
-2,387
-950
-59
-1
-537
-247
287
40
FY18
2,374
1,255
505
-698
-226
3,209
0
3,209
-3,962
-753
0
292
-3,670
3
1,278
-796
0
-34
451
-10
40
30
FY19
1,198
1,642
720
-260
-187
3,113
0
3,113
-2,589
523
0
162
-2,428
4
429
-882
0
-236
-685
0
30
29
FY20
2,936
1,873
837
-383
-2,005
3,257
0
3,257
-2,421
836
0
59
-2,362
545
139
-896
-256
-440
-908
-12
30
18
FY21E
8,866
2,062
544
-1,951
-3,837
5,684
0
5,684
-3,000
2,684
0
166
-2,834
0
20
-709
-694
0
-1,384
1,466
18
1,484
FY22E
9,630
2,458
641
-2,128
-1,546
9,055
0
9,055
-3,200
5,855
0
189
-3,011
0
-1,000
-829
-753
0
-2,582
3,461
1,484
4,944
1 August 2020
7
 Motilal Oswal Financial Services
Laurus Labs
NOTES
1 August 2020
8
 Motilal Oswal Financial Services
Laurus Labs
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
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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
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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.
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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
1 August 2020
9
 Motilal Oswal Financial Services
Laurus Labs
********************************************************************************************************************************
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
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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
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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
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Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
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no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
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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
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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.
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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
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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.
1 August 2020
10