3 August 2020
Godrej Agrovet
1QFY21 Results Update | Sector: Mid cap
Godrej Agrovet
Buy
Estimate change
TP change
Rating change
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CMP: INR471
TP: INR540 (+15%)
Lower RM costs drive margin expansion
Operating performance beats expectations
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Financials & Valuations (INR b)
Y/E Mar
2020 2021E
Sales
68.3
66.5
EBITDA
4.1
5.5
PAT
2.5
3.0
EBITDA (%)
6.0
8.2
EPS (INR)
13.2
15.6
EPS Gr. (%)
5.7
17.7
BV/Sh. (INR)
96
104
Ratios
Net D/E
0.3
0.3
RoE (%)
14.6
15.6
RoCE (%)
11.8
12.8
Payout (%)
41.5
46.4
Valuations
P/E (x)
35.6
30.2
EV/EBITDA (x)
24.4
18.2
Div Yield (%)
1.2
1.3
FCF Yield (%)
(0.3)
1.7
GOAGRO IN
192
90.4 / 1.2
598 / 265
6/-10/9
75
GOAGRO’s 1QFY21 revenues declined; however, EBITDA margin expanded
due to lower RM costs, which led to 17% EBITDA growth. Consolidated
margin expansion was led by animal feed (AF), Astec and Godrej Tyson
Foods. This was partially offset by weak performance in palm oil, standalone
crop protection (CP) and dairy businesses.
We have increased our earnings estimate for FY21/FY22E by 14%/4% after
factoring in the beat to our estimates. We value the stock on SOTP basis to
arrive at a TP of INR540. Maintain
Buy.
Revenue declined 9% YoY to INR15.5b (v/s est. INR15.7b), mainly due to
AF/dairy businesses, which was offset by growth in palm oil, CP and Tyson
Foods. EBITDA margins expanded 230bp YoY to 10.7% (v/s est. 8.2%) due to
330bp gross margin expansion. This was offset by 70bp/30bp expansion in
employee/other expenses as % of sales. Adj. PAT grew 16% YoY to INR885m
(v/s est. INR700m).
AF business
revenue declined 15% YoY (to INR7.5b) owing to 17% volume
decline, which was offset by price increase/mix changes (+2% YoY). Volumes
across segments were impacted due to the extended lockdown in 1QFY21.
EBIT margins witnessed sharp 160bp expansion to 6.4% due to favorable
input prices. EBIT/kg grew 37% YoY to INR1.8/kg (+59% QoQ).
Palm oil business
grew 8% YoY to INR1.6b due to increase in prices of crude
palm oil and palm kernel oil. Lower arrival (down 12% to 123kMT) of Fresh
Fruit Bunches (FFBs) and lower yields (16% v/s 17% last year) led to EBIT
margin contraction of 460bp (to 4.1%).
CP business
grew 12% YoY (to INR3.2b) with EBIT margin contracting 50bp
(to 26.3%).
Sales in standalone CP
dipped 1% YoY (to INR2.1b) while EBIT
declined 19% YoY. Production disruption caused by the extended lockdown
resulted in lower-than-expected sales volume of higher-margin specialty
products, which dented profitability.
Astec:
Revenue/EBITDA grew
45%/302% due to strong volumes and higher realizations in the enterprise
sales segment.
Dairy business
declined 26% YoY and stood at INR2.4b with EBIT margin
contracting 70bp to 1.4%. Lower demand for milk and value-added products
during 1QFY21 led to decline in volumes, sales and margins.
Godrej Tyson Foods
revenue grew 22% YoY (to INR1.7b) with EBITDA margin
of 13% (v/s 4.7% last year). Favorable input prices supported profitability.
GOAGRO expects benefits from lower RM costs to moderate, and thus,
margin expansion witnessed in the AF segment is likely to reduce.
Yummiez
witnessed sharp uptick in volumes and sales, driven by increased
consumption of ready-to-cook products by households.
Yummiez
is
Astec, animal feed and Godrej Tyson Foods drive margin expansion
2022E
76.1
6.3
3.6
8.2
18.9
21.3
116
0.2
17.2
14.3
38.2
24.9
15.8
1.3
2.0
Shareholding pattern (%)
Jun-20 Mar-20 Jun-19
Promoter
70.1
70.1
69.0
DII
2.3
2.2
2.7
FII
3.5
3.5
3.3
Others
24.1
24.3
25.1
Note: FII includes depository receipts
Highlights from management commentary
Research Analyst: Sumant Kumar
(Sumant.Kumar@MotilalOswal.com)
Darshit Shah
(Darshit.Shah@motilaloswal.com) /
Yusuf Inamdar
(yusuf.inamdar@motilaloswal.com)
3 August 2020
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.
1
 Motilal Oswal Financial Services
Godrej Agrovet
garnering excellent customer response, which is reflected through its market
share gains, both in the vegetarian/non-vegetarian frozen food product
categories.
CRAMS constitutes 20% of Astec’s sales with the balance coming in from
enterprise sales. Management intends to take share of CRAMS in total revenue
to 50% in the coming years.
Valuation and view
In the near term, COVID-19 is likely to impact GOAGRO’s performance across
businesses (mainly animal feed and dairy), except in CP and palm oil. However,
once normalcy returns, performance is likely to improve.
GOAGRO's CP business is expected to be on strong footing due to (a) product
launches in the standalone CP segment, (b) strong performance in Astec owing
to its expertise in triazole chemistry, and (c) commencement of a new herbicide
plant in Astec.
In the AF segment, increase in chicken/milk prices should improve farm
profitability, thereby driving demand for broiler/cattle feed. Additionally, the
company is likely to benefit from lower RM prices (in the near term).
Volume growth is likely to return on higher arrival of FFBs and corrective steps
taken by the company to prevent pilferage of FFB to other mills. Additionally,
the new plant with improved technology should also ensure higher yields.
We have increased our earnings estimate for FY21/FY22E by 14%/4% after
factoring in the beat to our estimates. We value the stock on SOTP basis and
arrive at TP of INR540. Maintain
Buy.
FY20
2Q
3Q
4Q
18,511 17,827 14,930
16.5
22.6
7.3
17,314 16,821 14,448
1,197 1,006
482
6.5
5.6
3.2
375
371
384
125
108
82
113
93
159
811
621
175
0
0
-681
811
-213
-26.2
-16
1,040
1,040
10.4
5.6
621
168
27.1
-63
516
516
26.1
2.9
856
169
19.7
-58
746
228
-10.2
1.5
FY21
FY20
FY21
2QE
3QE
4QE
17,769 17,367 15,834 68,294 66,511
-4.0
-2.6
6.1
15.4
-2.6
16,275 16,057 14,820 64,189 61,034
1,493 1,311 1,014 4,104 5,477
8.4
7.5
6.4
6.0
8.2
370
370
375 1,481 1,481
130
128
125
416
511
96
79
128
468
386
1,090
892
641 2,675 3,871
0
0
0
-681
0
1,090
274
25.2
-16
831
831
-20.1
4.7
892
224
25.2
-67
734
734
42.3
4.2
641
161
25.2
-64
544
544
138.5
3.4
3,357
480
14.3
-185
3,062
2,544
5.7
3.7
3,871
998
25.8
-121
2,994
2,994
17.7
4.5
(INR M)
FY21
Var
1QE
(%)
15,660
-1
-8.0
14,369
1,292
28
8.2
390
115
92
879
0
879
221
25.2
-43
700
700
-7.8
4.5
26
Consolidated - Quarterly Earning Model
Y/E March
Gross Sales
YoY Change (%)
Total Expenditure
EBITDA
Margins (%)
Depreciation
Interest
Other Income
PBT before EO expense
Extra-Ord expense
PBT
Tax
Rate (%)
Minority Interest & Profit/Loss of
Asso. Cos.
Reported PAT
Adj PAT
YoY Change (%)
Margins (%)
1Q
17,026
14.7
15,607
1,419
8.3
351
102
102
1,068
0
1,068
356
33.3
-48
760
760
-5.3
4.5
1Q
15,542
-8.7
13,882
1,659
10.7
366
128
83
1,248
0
1,248
338
27.1
25
885
885
16.5
5.7
3 August 2020
2
 Motilal Oswal Financial Services
Godrej Agrovet
Key Performance Indicators
Y/E March
Segment Revenue Gr. (%)
Animal Feed (AF)
Palm Oil
Crop Protection
Dairy
Segment EBIT Margin (%)
Animal Feed
Palm Oil
Crop Protection
Dairy
AF Volumes (000'MT)
AF Realization (INR/kg)
Cost Break-up
RM Cost (% of sales)
Staff Cost (% of sales)
Other Cost (% of sales)
Gross Margins (%)
EBITDA Margins (%)
EBIT Margins (%)
1Q
20.0
-13.6
11.6
2.4
4.8
8.7
26.8
2.1
324
27.3
76.2
5.2
10.3
23.8
8.3
6.3
FY20
2Q
31.9
-11.2
7.0
2.2
4.6
12.2
19.8
-0.1
332
28.2
78.3
5.1
10.1
21.7
6.5
4.4
3Q
32.3
24.2
-5.4
2.7
3.5
19.4
17.5
-0.2
350
28.9
79.5
5.2
9.6
20.5
5.6
3.6
4Q
-0.1
4.9
38.1
5.0
3.8
6.5
19.3
-2.1
294
29.9
77.4
5.2
14.2
22.6
3.2
0.7
1Q
-15.5
8.2
11.9
-26.2
6.4
4.1
26.3
1.4
268
27.9
72.8
5.9
10.6
27.2
10.7
8.3
FY21
2QE
3QE
-14.7
15.0
19.6
-20.0
5.5
10.0
19.2
-1.0
289
27.7
77.0
5.3
9.2
23.0
8.4
6.3
-13.6
12.0
13.9
-10.0
4.2
17.5
17.1
-1.0
315
27.8
78.3
5.5
8.6
21.7
7.5
5.4
4QE
3.4
8.0
12.3
-5.0
4.8
5.0
20.2
-2.5
324
28.1
77.0
5.3
11.3
23.0
6.4
4.0
FY20
20.1
(0.9)
11.0
3.0
4.1
13.3
21.1
(0.0)
1,301
28.6
77.9
5.2
10.9
22.1
6.0
3.8
FY21
(10.3)
11.8
14.8
(15.7)
4.8
11.0
19.0
(0.3)
1,196
27.9
76.4
5.5
9.9
23.6
8.2
6.0
Key Exhibits
Exhibit 1: Consolidated revenue trend
Revenue (INRm)
19.1
8.8
11.4
16.4
14.7
16.5
Growth (%)
22.6
9.4
7.3
(8.7)
8.9
Exhibit 2: Consolidated EBITDA trend
EBITDA (INRm)
8.3
5.4
Margin (%)
10.7
6.9
6.5
5.6
3.2
1,393 1,407 1,010 749 1,419 1,197 1,006 482 1,659
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
FY21
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
FY21
FY19
FY20
FY19
FY20
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 3: Consolidated adj. PAT trend
Adj PAT (INRm)
16.7
8.7
Growth (%)
26.1
10.4
1.4
(5.3)
760
1Q
1,040
2Q
FY20
516
3Q
(10.2)
228
4Q
885
1Q
FY21
Source: Company, MOFSL
16.5
9.1
802
1Q
942
2Q
FY19
409
3Q
254
4Q
3 August 2020
3
 Motilal Oswal Financial Services
Godrej Agrovet
Exhibit 4: Animal Feed business
Particulars
Volume (MT)
Growth (%)
Revenue (INRm)
Growth (%)
EBIT (INRm)
Margin (%)
Growth (%)
3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21
2,88,138 3,00,609 3,04,220 3,04,223 3,24,261 3,31,806 3,24,035 3,32,301 3,50,290 2,94,215 2,67,749
19.0
15.9
12.5
10.4
6.5
9.2
8.0
(11.3)
(17.4)
6,470
6,827
7,373
7,115
7,660
8,821
8,850
9,387
10,130
8,811
7,480
16.2
16.3
18.4
29.2
20.0
31.9
32.3
(0.1)
(15.5)
389
488
361
225
237
461
424
431
350
332
481
6.0
7.1
4.9
3.2
3.1
5.2
4.8
4.6
3.5
3.8
6.4
(9.3)
(20.7)
(39.0)
(5.5)
17.2
91.1
47.5
(27.9)
13.5
Source: Company, MOFSL
3QFY18
1,559
4QFY18
1,872
1QFY19
2,567
(8.1)
762
29.7
6.8
2QFY19
3,192
23.1
808
25.3
24.7
3QFY19
2,305
47.9
411
17.8
14.6
4QFY19
1,811
(3.3)
331
18.3
(5.7)
1QFY20
2,866
11.6
768
26.8
0.8
2QFY20
3,416
7.0
678
19.8
(16.1)
3QFY20 4QFY20 1QFY21
2,180
2,501
3,208
(5.4)
38.1
11.9
381
483
844
17.5
19.3
26.3
(7.5)
46.1
10.0
Source: Company, MOFSL
3QFY20 4QFY20 1QFY21
912
670
2,082
(15.7)
48.2
(0.5)
185
59
604
20.3
8.8
29.0
(15.1)
(33.7)
(18.8)
Source: Company, MOFSL
3QFY20 4QFY20 1QFY21
2,250
1,805
1119
24.2
34.9
45.3
436
479
295
19.4
26.5
26.4
36.7
66.3
304.1
Source: Company, MOFSL
3QFY20 4QFY20 1QFY21
2,250
665
1,574
24.2
4.9
8.2
436
43
65
19.4
6.5
4.1
36.7 (4,009.1)
(48.9)
Source: Company, MOFSL
3QFY20 4QFY20 1QFY21
2,855
2,808
2,365
2.7
5.0
(26.2)
72
21
21
2.5
0.7
0.9
(59.8)
(83.5)
(84.8)
-7
-58
33
(0.2)
(2.1)
1.4
(106.0)
(254.0)
(50.2)
Source: Company, MOFSL
Exhibit 5: Consolidated crop protection
Particulars
Revenue (INRm)
Growth (%)
EBIT (INRm)
Margin (%)
Growth (%)
359
23.0
351
18.7
Exhibit 6: Standalone Crop Protection
Particulars
Revenue (INRm)
Growth (%)
EBIT (INRm)
Margin (%)
Growth (%)
3QFY18
816
4QFY18
588
240
29.4
56
9.5
1QFY19
1,913
(7.7)
702
36.7
13.8
2QFY19
2,048
25.3
592
28.9
15.6
3QFY19
1,082
32.6
218
20.1
(9.2)
4QFY19
452
(23.1)
89
19.7
58.9
1QFY20
2,093
9.4
744
35.5
6.0
2QFY20
2,002
(2.2)
550
27.5
(7.1)
Exhibit 7: Astec Life Sciences
Particulars
Revenue (INRm)
Growth (%)
EBITDA (INRm)
Margin (%)
Growth (%)
3QFY18
760
4QFY18
1,284
330
25.7
151
19.9
1QFY19
650
(13.6)
92
14.2
-
2QFY19
1,146
17.4
253
22.1
54.3
3QFY19
1,812
138.4
319
17.6
111.3
4QFY19
1,338
4.2
288
21.5
(12.7)
1QFY20
770
18.5
73
9.5
(20.7)
2QFY20
1,420
23.9
171
12.0
(32.4)
Exhibit 8: Palm oil business
Particulars
Revenue (INRm)
Growth (%)
EBIT (INRm)
Margin (%)
Growth (%)
3QFY18
1,356
4QFY18
517
40
7.7
253
18.7
1QFY19
1,683
28.5
358
21.3
67.5
2QFY19
2,665
(0.2)
458
17.2
(25.6)
3QFY19
1,812
33.6
319
17.6
26.0
4QFY19
634
22.5
-1
-0.2
NA
1QFY20
1,454
(13.6)
127
8.7
(64.6)
2QFY20
2,366
(11.2)
288
12.2
(37.2)
Exhibit 9: Dairy business
Particulars
Revenue (INRm)
Growth (%)
EBITDA (INRm)
Margin (%)
Growth (%)
EBIT (INRm)
Margin (%)
Growth (%)
3QFY18
2,825
143
5.1
90
3.2
4QFY18
2,742
42
1.5
-17
(0.6)
1QFY19
3,129
1.5
62
2.0
(12.7)
2
0.1
(83.9)
2QFY19
2,996
2.3
59
2.0
(37.9)
-4
(0.1)
NA
3QFY19
2,780
(1.6)
179
6.4
25.2
113
4.0
25.6
4QFY19
2,674
(2.5)
127
4.7
202.4
38
1.4
NA
1QFY20
3,204
2.4
138
4.3
122.6
66
2.1
3,220.0
2QFY20
3,063
2.2
91
3.0
54.2
-2
(0.1)
(52.6)
3 August 2020
4
 Motilal Oswal Financial Services
Godrej Agrovet
Management commentary highlights
Animal Feed
Extended lockdown impacted volumes across the animal feed segments –
volumes declined 17% YoY in 1QFY21.
Demand for animal proteins currently stands at 55-60% of Jan’20 level. There is
good demand being witnessed from an increasing number of milk farms.
High yielding cows (giving 25 liters milk per day) have higher nutritional needs
v/s normal cows (giving 10-15 liters milk per day). Thus, high yielding cows
require much higher quality animal feed.
Sequential improvement in volumes and favorable input prices are expected to
drive profits in the near-term.
Broiler/layer feed volume decline was higher than the decline seen in fish/cattle
feed volumes. However, shrimp feed volumes have grown over the previous year.
Greater emphasis on efficient working capital management and cash collections
is yielding results. This was witnessed in cash collection of INR2.24b in 1QFY21
(v/s collection of INR1.31b in 1QFY20). Crop protection segment’s performance
was impacted as the company took a conscious call to reduce the receivable for
its distributors.
The company launched new herbicides during the quarter– ‘Delete Aqua’ and
‘Impool-X’.
Production disruption caused by the extended lockdown resulted in lower-than-
expected sales volumes of higher margin specialty products. This adversely
impacted segment results in the current quarter.
Lost 20-25 days of production in the Jammu plant and also 15 days in May’20,
leading to lower profitability (as high margin products are produced there).
Lower FFB arrivals in the current quarter and lower yields (v/s in 1QFY20)
impacted segment profitability.
Prices of crude palm oil (CPO) is INR70,000/MT and palm kernel oil (PKO) is
touching INR80,000/MT. Further, palm oil prices are expected to increase. Price
of CPO for the quarter is INR64,000/MT.
The extended lockdown has adversely impacted (a) milk demand from the
institutional segment, and (b) out-of-home consumption of milk products.
Therefore, lower demand for milk and value-added products during 1QFY21 led
to decline in volumes, sales and margins.
20-25% milk sales come from institutions. Post lifting of the lockdown, demand
is returning to normalcy. Milk/chicken sales were 15-20%/45% compared to the
previous year.
Sales of sweets are picking-up. Opening of HORECA will support margins of the
milk business. HORECA/institutional sales account for 30% of the overall sales of
products across chicken, oil, dairy, etc.
Growth was driven by strong volumes and higher realizations in the enterprise
sales segment. Geographically, exports have grown faster than domestic sales.
Pharma segment currently contributes 5% of total sales. The company cannot
expand further due to bandwidth issues.
CRAMS constitute 20% of Astec’s sales with the balance coming from enterprise
sales. Management intends to take share of CRAMS in total revenue to 50% in
the coming years.
5
Crop Protection (standalone)
Vegetable Oil
Dairy
Astec LifeSciences
3 August 2020
 Motilal Oswal Financial Services
Godrej Agrovet
Asset turnover ratio stands at 1.5-1.7x. Similar asset turn can be expected from
the new herbicide capex in Astec LifeSciences.
Yummiez
segment witnessed sharp uptick in volumes and sales, driven by
increased consumption of ready-to-cook products by households. Products are
getting excellent customer response, which is reflected in its market share gains
from both vegetarian/non-vegetarian frozen food product categories.
Yummiez
posted record growth and benefitted from lower RM (soybean, corn,
etc.) prices.
In the near term, COVID-19 is likely to impact GOAGRO's performance across
businesses (mainly animal feed and dairy), except in CP and palm oil. However,
once normalcy returns, performance is likely to improve.
GOAGRO's CP business is expected to be on strong footing due to (a) product
launches in the standalone CP segment, (b) strong performance in Astec owing
to its expertise in triazole chemistry, and (c) commencement of a new herbicide
plant in Astec.
In the AF segment, increase in chicken/milk prices should improve farm
profitability, thereby driving demand for broiler/cattle feed. Additionally, the
company is likely to benefit from lower RM prices (in the near term).
Volume growth is likely to return on higher arrival of FFBs and corrective steps
taken by the company to prevent pilferage of FFB to other mills. Additionally,
the new plant with improved technology should also ensure higher yields.
We have increased our earnings estimate for FY21/FY22E by 14%/4% after
factoring in the beat to our estimates. We value the stock on SOTP basis and
arrive at TP of INR540. Maintain Buy.
EV/
Net Debt
EV (INRm)
EBITDA (x)
(INRm)
18.0
16.0
16.0
10.0
18.8
15.0
15.0
16.0
17.7
31,888
24,098
40,098
(14,459)
81,625
5,805
14,348
13,287
1,15,066
Equity
Value
(INRm)
31,888
24,098
40,098
(14,459)
77,685
15,776
5,701
14,348
13,287
1,26,798
GOAGRO's
share (%)
100%
100%
100%
100%
100%
57%
52%
51%
50%
Value
Value/
% Share
(INRm) share (INR)
31,888
24,098
40,098
(14,459)
77,685
9,063
2,959
7,318
6,644
166
125
209
(75)
405
47
15
38
35
540
471
15%
31%
23%
39%
-14%
75%
9%
3%
7%
6%
100%
Others
Valuation and view
Exhibit 10: Valuation
Particulars
Standalone:
Crop Protection
1,772
Palm Oil
1,506
Animal Feed
2,506
Unallocated expenses
(1,446)
Total
4,338
Subsidiaries:
Astec (mcap with 20% holdco disc)
Creamline Dairy
387
Godrej Tyson Foods Limited & Others
957
JV/ Associate:
ACI Godrej Agrovet Private Limited
830
Total
6,512
CMP
Upside
EBITDA
FY22E
(INRm)
3,940
104
Source: MOFSL
Exhibit 11: Change in estimates
Earnings Change
(INR m)
Revenue
EBITDA
Adj. PAT
FY21E
70,228
4,883
2,619
Old
FY22E
80,271
5,930
3,488
FY21E
66,511
5,477
2,994
New
FY22E
76,101
6,263
3,631
Change
FY21E
FY22E
-5%
-5%
12%
6%
14%
4%
Source: MOFSL
3 August 2020
6
 Motilal Oswal Financial Services
Godrej Agrovet
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 (%)
Profit from Associate & MI
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
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
FY16
37,550
13.4
34,585
92.1
2,965
7.9
524
2,441
977
627
2,091
946
3,037
754
24.8
-356
2,639
1,693
-2.5
4.5
FY16
926
6,906
7,832
2,323
13,757
1,458
25,369
12,139
564
11,575
1,949
638
2,140
14,930
6,665
4,545
420
3,299
5,862
3,349
2,312
202
9,067
25,369
FY17
49,264
31.2
44,884
91.1
4,380
8.9
747
3,633
863
590
3,360
200
3,560
1,018
28.6
55
2,487
2,287
35.1
4.6
FY17
1,851
8,237
10,088
2,541
6,641
1,663
20,933
14,109
1,329
12,779
1,949
504
1,755
15,157
7,381
5,219
538
2,019
11,212
8,408
2,496
308
3,946
20,933
FY18
52,059
5.7
47,629
91.5
4,430
8.5
859
3,571
453
318
3,436
121
3,557
1,207
33.9
57
2,292
2,172
-5.1
4.2
FY18
1,920
12,193
14,114
2,693
4,098
1,730
22,635
15,185
2,214
12,971
1,949
1,904
1,952
16,749
7,629
6,315
299
2,507
12,890
9,550
2,955
385
3,859
22,635
FY19
59,177
13.7
54,619
92.3
4,558
7.7
982
3,577
339
531
3,769
883
4,652
1,280
27.5
82
3,290
2,407
10.9
4.1
FY19
1,920
14,570
16,490
4,010
3,950
2,086
26,536
21,246
3,196
18,050
2,649
936
1,165
19,542
9,517
7,349
299
2,378
15,807
12,394
2,934
478
3,736
26,536
FY20
68,294
15.4
64,189
94.0
4,104
6.0
1,481
2,624
416
468
2,675
681
3,357
481
14.3
-185
3,062
2,544
5.7
3.7
FY20
1,920
16,461
18,381
3,825
6,185
1,751
30,142
23,812
4,677
19,136
2,649
1,532
1,292
22,392
9,436
8,539
508
3,910
16,859
12,885
3,467
507
5,533
30,142
FY21E
66,511
-2.6
61,034
91.8
5,477
8.2
1,481
3,995
511
386
3,870
0
3,870
998
25.78
-121
2,994
2,994
17.7
4.5
FY21E
1,920
18,067
19,987
3,869
6,185
1,751
31,792
26,288
6,158
20,130
2,649
1,556
1,292
22,188
9,197
8,382
619
3,991
16,024
12,207
3,326
491
6,165
31,792
(INR M)
FY22E
76,101
14.4
69,838
91.8
6,263
8.2
1,707
4,556
487
609
4,678
0
4,678
1,177
25.2
-130
3,631
3,631
21.3
4.8
(INR M)
FY22E
1,920
20,310
22,230
3,920
5,685
1,751
33,586
28,783
7,865
20,918
2,649
1,561
1,292
25,501
10,523
9,591
821
4,566
18,335
13,968
3,805
562
7,167
33,586
3 August 2020
7
 Motilal Oswal Financial Services
Godrej Agrovet
Financials and valuations
Ratios
Y/E March
Basic (INR)
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
Fixed Asset Turnover (x)
Asset Turnover (x)
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
FY16
8.8
11.5
40.8
2.1
18.8
FY17
11.9
15.8
52.5
4.5
41.9
39.5
29.8
9.0
2.0
22.6
1.0
36.6
23.8
13.2
11.3
3.1
1.5
65
44
33
2.5
2.5
1.6
FY16
3,364
524
885
-456
-1,024
3,293
-1,610
1,683
-1,223
460
581
-3,581
-4,223
39
4,168
-972
-452
0
2,784
244
175
419
25.5
15.7
12.9
3.5
2.4
55
39
62
1.4
4.2
0.6
FY17
3,727
747
715
-800
5,145
9,534
-561
8,973
-1,949
7,024
610
366
-974
8
-7,027
-861
0
0
-7,881
119
419
538
FY18
11.3
15.8
73.5
4.5
45.6
41.6
29.8
6.4
1.9
21.9
1.0
5.7
17.9
14.7
12.9
3.4
2.3
53
44
67
1.3
7.9
0.3
FY18
3,717
859
453
-837
-471
3,721
-183
3,538
-2,448
1,091
-131
51
-2,528
2
-2,571
-455
-1,045
2,818
-1,250
-240
538
299
FY19
12.5
17.6
85.9
4.5
31.6
37.6
26.7
5.5
1.7
21.5
1.0
9.0
15.7
15.4
12.2
2.8
2.2
59
45
76
1.2
10.6
0.2
FY19
4,773
982
339
-1,097
633
5,629
-1,152
4,477
-2,759
1,719
0
386
-2,372
0
-680
-354
-1,076
4
-2,105
0
299
299
FY20
13.2
21.0
95.7
5.5
41.5
35.6
22.5
4.9
1.5
24.4
1.2
-1.2
14.6
11.8
8.8
2.9
2.3
50
46
69
1.3
6.3
0.3
FY20
3,486
1,481
416
-969
-2,204
2,210
188
2,398
-2,634
-236
0
82
-2,552
0
2,311
-390
-1,076
-481
364
210
299
508
FY21E
15.6
23.3
104.1
6.0
46.4
30.2
20.2
4.5
1.5
18.2
1.3
7.8
15.6
12.8
10.8
2.5
2.1
50
46
67
1.4
7.8
0.3
FY21E
3,870
1,481
125
-998
-477
4,002
0
4,002
-2,500
1,502
0
551
-1,949
0
0
-511
-1,388
-44
-1,943
110
508
619
FY22E
18.9
27.8
115.8
6.0
38.2
24.9
16.9
4.1
1.3
15.8
1.3
9.6
17.2
14.3
11.7
2.6
2.3
50
46
67
1.4
9.4
0.2
(INR M)
FY22E
4,678
1,707
-122
-1,177
-748
4,338
0
4,338
-2,500
1,838
0
790
-1,710
0
-500
-487
-1,388
-52
-2,426
202
619
821
3 August 2020
8
 Motilal Oswal Financial Services
Godrej Agrovet
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 (%)
Profit from Associate & MI
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
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
33,118
6.7
30,059
90.8
3,059
9.2
370
2,690
655
137
2,172
364
2,536
605
23.9
-170
2,101
1,736
10.9
5.2
FY15
926
5,478
6,404
0
6,848
565
13,818
6,417
975
5,443
0
1,380
1,858
8,847
3,888
2,693
175
2,092
3,711
2,141
1,434
136
5,136
13,818
FY16
37,550
13.4
34,585
92.1
2,965
7.9
524
2,441
977
627
2,091
946
3,037
754
24.8
-356
2,639
1,693
-2.5
4.5
FY16
926
6,906
7,832
2,323
13,757
1,458
25,369
12,139
564
11,575
1,949
638
2,140
14,930
6,665
4,545
420
3,299
5,862
3,349
2,312
202
9,067
25,369
FY17
49,264
31.2
44,884
91.1
4,380
8.9
747
3,633
863
590
3,360
200
3,560
1,018
28.6
55
2,487
2,287
35.1
4.6
FY17
1,851
8,237
10,088
2,541
6,641
1,663
20,933
14,109
1,329
12,779
1,949
504
1,755
15,157
7,381
5,219
538
2,019
11,212
8,408
2,496
308
3,946
20,933
FY18
52,059
5.7
47,629
91.5
4,430
8.5
859
3,571
453
318
3,436
121
3,557
1,207
33.9
57
2,292
2,172
-5.1
4.2
FY18
1,920
12,193
14,114
2,693
4,098
1,730
22,635
15,185
2,214
12,971
1,949
1,904
1,952
16,749
7,629
6,315
299
2,507
12,890
9,550
2,955
385
3,859
22,635
FY19
59,177
13.7
54,619
92.3
4,558
7.7
982
3,577
339
531
3,769
883
4,652
1,280
27.5
82
3,290
2,407
10.9
4.1
FY19
1,920
14,570
16,490
4,010
3,950
2,086
26,536
21,246
3,196
18,050
2,649
936
1,165
19,542
9,517
7,349
299
2,378
15,807
12,394
2,934
478
3,736
26,536
FY20
68,294
15.4
64,189
94.0
4,104
6.0
1,481
2,624
416
468
2,675
681
3,357
481
14.3
-185
3,062
2,544
5.7
3.7
FY20
1,920
16,461
18,381
3,825
6,185
1,751
30,142
23,812
4,677
19,136
2,649
1,532
1,292
22,392
9,436
8,539
508
3,910
16,859
12,885
3,467
507
5,533
30,142
FY21E
66,956
-2.0
62,900
93.9
4,057
6.1
1,602
2,454
495
469
2,428
0
2,428
611
25.2
-208
2,025
2,025
-20.4
3.0
FY21E
1,920
17,214
19,134
3,759
6,185
1,751
30,829
26,288
6,279
20,009
2,649
1,556
1,292
22,090
10,340
8,438
634
2,678
16,767
12,925
3,348
495
5,323
30,829
(INR M)
FY22E
75,916
13.4
70,308
92.6
5,608
7.4
1,707
3,901
487
607
4,021
0
4,021
1,012
25.2
-233
3,242
3,242
60.1
4.3
(INR M)
FY22E
1,920
19,185
21,105
3,682
5,685
1,751
32,223
28,783
7,986
20,797
2,649
1,561
1,292
24,728
11,557
9,567
566
3,037
18,803
14,447
3,796
561
5,924
32,223
3 August 2020
9
 Motilal Oswal Financial Services
Godrej Agrovet
Financials and valuations
Ratios
Y/E March
Basic (INR)
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
Fixed Asset Turnover (x)
Asset Turnover (x)
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
9.0
11.0
33.4
3.7
39.3
FY16
8.8
11.5
40.8
2.1
18.8
FY17
11.9
15.8
52.5
4.5
41.9
32.4
24.4
7.3
1.7
18.9
1.2
36.6
30.0
17.5
22.4
5.2
2.4
43
30
24
2.4
4.1
1.0
FY15
2,706
370
620
-557
-1,552
1,587
-499
1,088
-1,094
-5
-131
-44
-1,269
0
566
-650
-706
0
-790
-970
1,146
175
23.8
13.2
11.3
3.1
1.5
65
44
33
2.5
2.5
1.6
FY16
3,364
524
885
-456
-1,024
3,293
-1,610
1,683
-1,223
460
581
-3,581
-4,223
39
4,168
-972
-452
0
2,784
244
175
419
25.5
15.7
12.9
3.5
2.4
55
39
62
1.4
4.2
0.6
FY17
3,727
747
715
-800
5,145
9,534
-561
8,973
-1,949
7,024
610
366
-974
8
-7,027
-861
0
0
-7,881
119
419
538
FY18
11.3
15.8
73.5
4.5
45.6
34.1
24.5
5.3
1.5
18.2
1.2
5.7
17.9
14.7
12.9
3.4
2.3
53
44
67
1.3
7.9
0.3
FY18
3,717
859
453
-837
-471
3,721
-183
3,538
-2,448
1,091
-131
51
-2,528
2
-2,571
-455
-1,045
2,818
-1,250
-240
538
299
FY19
12.5
17.6
85.9
4.5
31.6
30.8
21.9
4.5
1.4
17.9
1.2
9.0
15.7
15.4
12.2
2.8
2.2
59
45
76
1.2
10.6
0.2
FY19
4,773
982
339
-1,097
633
5,629
-1,152
4,477
-2,759
1,719
0
386
-2,372
0
-680
-354
-1,076
4
-2,105
0
299
299
FY20
13.2
21.0
95.7
5.5
41.5
29.1
18.4
4.0
1.2
20.4
1.4
-1.2
14.6
11.8
8.8
2.9
2.3
50
46
69
1.3
6.3
0.3
FY20
3,486
1,481
416
-969
-2,204
2,210
188
2,398
-2,634
-236
0
82
-2,552
0
2,311
-390
-1,076
-481
364
210
299
508
FY21E
10.5
18.9
99.6
5.5
62.8
36.6
20.4
3.9
1.2
20.6
1.4
6.3
10.8
8.8
6.8
2.5
2.2
56
46
70
1.3
5.0
0.3
FY21E
2,428
1,602
26
-611
270
3,716
0
3,716
-2,500
1,216
0
611
-1,889
0
0
-495
-1,272
66
-1,701
126
508
634
FY22E
16.9
25.8
109.9
5.5
39.2
22.9
15.0
3.5
1.1
14.8
1.4
7.0
16.1
12.9
10.4
2.6
2.4
56
46
69
1.3
8.0
0.2
(INR M)
FY22E
4,021
1,707
-121
-1,012
-746
3,850
0
3,850
-2,500
1,350
0
764
-1,736
0
-500
-487
-1,272
77
-2,182
-68
634
566
3 August 2020
10
 Motilal Oswal Financial Services
Godrej Agrovet
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
3 August 2020
11
 Motilal Oswal Financial Services
Godrej Agrovet
********************************************************************************************************************************
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.
3 August 2020
12