1 September 2020
Update
| Sector:
Capital Goods
Larsen & Toubro
BSE SENSEX
38,901
S&P CNX
11,470
CMP: INR955
TP: INR1,100(+15%)
Buy
E&A sale complete – is the delay a blessing in disguise?
E&A proceeds may easily take care of any COVID-19-led non-core funding risk
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
LT IN
1,402
1341 / 18.2
1554 / 661
1/-21/-32
5011
100.0
Financials Snapshot (INR b)
Y/E Mar
2020 2021E 2022E
Sales
1,455 1,419 1,631
EBITDA
163
156
189
PAT
89
69
93
EBITDA (%)
11.2
11.0
11.6
EPS (INR)
63.4
49.5
66.1
EPS Gr. (%)
10.5 -21.9
33.7
BV/Sh. (INR)
475
577
599
Ratios
Net D/E
1.9
1.6
1.7
RoE (%)
13.3
8.6
11.1
RoCE (%)
5.7
4.5
5.1
Payout (%)
26.5
30.0
30.0
Valuations
P/E (x)
15.1
19.3
14.4
P/BV (x)
2.0
1.7
1.6
EV/EBITDA (x)
18.9
20.2
17.3
Div Yield (%)
1.4
2.8
1.5
FCF Yield (%)
0.8
-1.1
-3.8
Shareholding pattern (%)
As On
Jun-20 Mar-20 Jun-19
Promoter
0.0
0.0
0.0
DII
36.0
37.9
37.3
FII
19.9
17.9
21.3
Others
44.0
44.2
41.4
FII Includes depository receipts
Stock Performance (1-year)
Larsen & Toubro
Sensex - Rebased
1,620
1,340
1,060
780
500
E&A proceeds fructify; expect after-tax cash inflow of USD1.4b:
L&T
announced the completion of the much-awaited E&A division sale to
Schneider. The deal was initially announced two years ago at EV of INR140b
and took time to achieve completion on account of the necessary approvals
needed and the fulfillment of other conditions. Barring the subsidiary in Saudi
Arabia – L&T Electrical & Automation Saudi Arabia Company Limited (LTEASA) –
for which local approvals are pending, E&A’s manufacturing facilities in India
and related subsidiaries in the UAE, Kuwait, Malaysia, and Indonesia are being
transferred to Schneider Electric. Note that Schneider Electric would use the
L&T brand for a specified period as the brand is highly popular and has a strong
recall in the Switchgear market. Adjusting for taxes and debt, the company is
likely to garner net cash inflow of USD1.4b as proceeds.
Likely nature of use of proceeds may have changed:
When the deal was
originally announced, and even until the days preceding the COVID-19
outbreak, we expected the proceeds to be utilized for buybacks or put toward
a one-time special dividend of INR70–80/sh. However, COVID-19 has posed
various challenges, including the risk of funding requirements in non-core
businesses such as L&T Finance and Hyderabad Metro. In light of this, as well
as given the uncertainties surrounding the local lockdowns and macro
environment risks, we do not expect any meaningful special dividend in the
near term. Instead, we expect L&T to use the liquidity firepower to mitigate
any troublesome risks that may emerge.
Better late than never – The delay may not be that bad:
The likely change in
the nature of use of the proceeds may be against the original expectation;
however, this has more to do with COVID-19-led risks than any change in the
management’s intention to return excess cash to shareholders. Also, despite
the long delay, proceeds of ~USD1.9b amid the pandemic further strengthen
the balance sheet – which is the primary risk for any company in the current
scenario. Owing to the proceeds, L&T is likely to maintain a strong liquidity
position and does not have to depend on debt on a net basis to support core
business execution.
Sufficient ammunition to fund any non-core funding risks:
The management
had already communicated that it may utilize part of the funds to restructure
the capital structure of the Hyderabad Metro by replacing external debt.
Thereafter, it may opt to divest the asset through the InvIT route as and when
the market for asset monetization turns conducive. Along with the
recapitalization of the Hyderabad Metro, the E&A sale’s proceeds could easily
take care of any funding risk in the L&T Finance business (given the impact of
COVID-19 and likely rise in NPAs for banks and NBFCs). We believe that even
after taking care of such funding requirements and the tax on the profits, the
Nilesh Bhaiya – Research Analyst
(Nilesh.Bhaiya@MotilalOswal.com)
Pratik Singh – Research Analyst
(Pratik.Singh@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
Larsen & Toubro
company would be left with net cash of ~INR50b from the proceeds. The timing
of such non-core funding risks may not be ascertainable. However, we believe:
a) Any likely funding in the non-core business would either happen over the next
few months or not at all. Either way, the overhang of funding risk is likely to be
over in the next three to six months. b) Incremental delay, coupled with the
subsequent opening up of the economy, may actually lower such risks.
Valuation and view:
We factor the E&A proceeds in our model. However,
instead of taking the benefit of other income on the entire proceeds, we limit
the benefit only to the extent of net proceeds of INR50b, thereby taking care of
any cash infusion risks in the non-core business. Once the overhang of such
requirements is over, we believe L&T is likely to be re-rated, even at a minor
improvement in the macro trends. Near-term macro risks (likely government
capex cut) may appear challenging, but current valuations are adequately
pricing-in such risks, in our view. On account of higher other income, we raise
our consol. EPS marginally by 1.6%/2.3% in FY21/FY22E. Maintain
Buy,
with TP
of INR1,100 on account of: (a) core business target P/E multiple of 16x v/s long
term average of 22x, and (b) contribution from four listed subsidiaries after
applying a 20% holding company discount. Adj. for valuation of subsidiaries, L&T
trades at FY22E PE of 12.7x.
1 September 2020
2
 Motilal Oswal Financial Services
Larsen & Toubro
Story in charts
Exhibit 1: Core E&C order inflows expected to gradually
recover after sharp decline in FY21E
Core E&C order inflow (INR b)
19.8
8.9
5.5
4.8
-15.4
YoY (%)
13.0
4.9
-22.3
Exhibit 2: Core E&C revenue expected to rise at 3.6% CAGR
over FY20–22E
Core E&C revenue (INR b)
11.3
8.2
7.3
1.4
YoY (%)
9.6
1.5
-5.5
13.6
1,137 1,362 1,152 1,207 1,274 1,387 1,455 1,131 1,278
719
729
811
877
941
1,031 1,046
988
1,123
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 3: Core E&C EBITDA estimated to rise at 3.5% CAGR
over FY20–22E
Core E&C EBITDA (INR b)
11.0
9.3
9.0
9.5
10.5
8.1
8.0
Core EBITDA margin (%)
Exhibit 4: Core E&C PAT expected to remain almost flat over
FY20–22E
Core E&C PAT (INR b)
46.1
YoY (%)
31.6
-22.3
7.3
8.0
25.3
19.0
-9.5
24.5
-30.9
79
67
73
83
99
84
84
72
90
35
24
31
45
53
48
60
47
61
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 5: Consolidated order inflow expected to remain flat
over FY20–22E
Order inflow (INR b)
22%
4%
-12%
7%
12%
9%
-16%
14%
YoY (%)
Exhibit 6: Consolidated revenue expected to rise at 6% CAGR
over FY20–22E
Consolidated revenue (INR b)
10.8
8.1
7.9
13.0
8.8
7.6
1,419
YoY (%)
14.9
-2.4
1,270 1,554 1,369 1,430 1,529 1,708 1,864 1,564 1,789
851
920 1,020 1,100 1,197 1,352 1,455
1,631
Source: MOFSL, Company
Source: MOFSL, Company
1 September 2020
3
 Motilal Oswal Financial Services
Larsen & Toubro
Exhibit 7: Consolidated EBITDA estimated to rise at 7.7%
CAGR, with margin expansion of 40bp over FY20–22E
12.6
Consolidated EBITDA (INR b)
12.3
11.3
10.3 10.1
EBITDA margin (%)
11.3
11.2
11.0
11.6
Exhibit 8: Consolidated PAT estimated to rise at 2.2% CAGR
over FY20–22E
Consolidated PAT (INR b)
43.0
13.1
-6.3
22.4
11.0
10.6
-21.9
59
72
80
89
69
93
YoY (%)
33.7
108
113
105
111
136
153
163
156
189
39
44
41
Source: MOFSL, Company
Source: MOFSL, Company
Valuation and view
Maintain Buy:
We factor the E&A proceeds in our model. However, instead of
taking the benefit of other income on the entire proceeds, we limit the benefit
only to the extent of net proceeds of INR50b, thereby taking care of any cash
infusion risks in the non-core business. Once the overhang of such requirements
is over, we believe L&T is likely to be re-rated, even at a minor improvement in
the macro trends. Near-term macro risks (likely government capex cut) may
appear challenging, but current valuations are adequately pricing-in such risks,
in our view. On account of higher other income, we raise our consol. EPS
marginally by 1.6%/2.3% in FY21/FY22E. Maintain
Buy,
with TP of INR1,100 on
account of: (a) core business target P/E multiple of 16x v/s long term average of
22x, and (b) contribution from four listed subsidiaries after applying a 20%
holding company discount. Adj. for valuation of subsidiaries, L&T trades at
FY22E PE of 12.7x.
Exhibit 9: Our SOTP-based TP stands at INR1,100
Business segment
Core E&C
IT & TS + MindTree
Finance Holdings
Development projects
Total
Mar’22E
700
316
48
35
1,100
Remarks
16x core E&C EPS
20% discount to current mkt cap
20% discount to current mkt cap
P/Inv based approach
Source: MOFSL, Company
1 September 2020
4
 Motilal Oswal Financial Services
Larsen & Toubro
Financials and valuations
Income Statement
Y/E March
Net Sales
Change (%)
EBITDA
Change (%)
Margin (%)
Depreciation
EBIT
Net Interest
Other Income
PBT
Tax
Rate (%)
Reported Profit (Before MI & AI)
Less: Minority Interest
Add: Profits of Associates
EO Adjustments
Adjusted PAT
Change (%)
Cons. Profit (Reported)
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deferred Tax Liability
Minority Interest
Capital Employed
Gross Fixed Assets
Less: Depreciation
Add: Capital WIP
Net Fixed Assets
Investments
Inventory
Debtors
Cash & Bank Balance
Loans & Advances
Other Current Assets
Current Assets
Current Liab. & Prov.
Net Current Assets
Capital Deployed
2017
10,93,118
7.2
1,11,305
6.4
10.2
23,699
87,606
13,387
13,441
87,659
20,066
22.9
68,808
4,443
-3,953
1,214
59,198
43.0
60,412
2018
11,96,832
9.5
1,35,714
21.9
11.3
19,287
1,16,427
15,385
14,120
1,15,162
31,989
27.8
84,403
6,346
-4,359
1,230
72,469
22.4
73,699
2019
13,52,203
13.0
1,53,296
13.0
11.3
19,230
1,34,066
18,026
18,365
1,34,406
40,671
30.3
1,02,376
13,115
-210
8,641
80,411
11.0
89,051
2020
14,54,524
7.6
1,63,290
6.5
11.2
24,623
1,38,667
27,967
23,609
1,34,310
32,632
24.3
1,08,223
13,453
720
6,546
88,945
10.6
95,490
2021E
14,19,023
-2.4
1,55,613
-4.7
11.0
25,579
1,30,034
38,847
25,817
1,17,004
32,690
27.9
1,87,661
15,631
800
1,03,347
69,483
-21.9
1,72,830
(INR m)
2022E
16,30,757
14.9
1,89,254
21.6
11.6
26,679
1,62,575
38,847
27,108
1,50,836
40,592
26.9
1,10,244
18,377
1,000
0
92,867
33.7
92,867
(INR m)
2022E
2,808
8,37,579
8,40,386
17,56,571
-23,935
1,29,216
27,02,239
5,75,180
1,50,904
33,111
4,57,387
2,00,475
64,429
4,40,304
3,16,787
25,095
7,70,993
29,63,772
9,19,396
20,44,376
27,02,239
2017
1,866
5,00,299
5,02,165
9,39,761
-11,252
35,636
14,66,310
1,71,779
38,375
1,67,374
3,00,778
1,97,530
41,397
2,79,696
55,725
19,547
4,88,977
16,05,954
6,37,950
9,68,004
14,66,312
2018
2,803
5,46,232
5,49,035
10,75,241
-21,170
52,014
16,55,120
2,19,694
57,939
1,58,481
3,20,236
1,53,113
48,478
3,31,170
80,327
23,536
5,74,595
19,23,256
7,41,486
11,81,771
16,55,120
2019
2,806
6,20,943
6,23,748
12,55,552
-31,078
68,261
19,16,483
2,62,141
74,024
1,63,017
3,51,134
2,11,203
64,139
3,70,382
1,17,262
24,890
6,14,870
21,94,782
8,40,637
13,54,146
19,16,483
2020
2,808
6,64,424
6,67,232
14,10,071
-23,935
95,208
21,48,576
5,35,180
98,646
33,111
4,69,645
2,00,475
57,467
4,07,315
1,51,178
22,383
6,87,673
23,52,974
8,74,518
14,78,457
21,48,576
2021E
2,808
8,06,930
8,09,738
15,75,071
-23,935
1,10,839
24,71,713
5,55,180
1,24,225
33,111
4,64,066
2,00,475
56,064
4,25,707
2,66,221
21,837
6,70,889
26,07,196
8,00,023
18,07,172
24,71,713
1 September 2020
5
 Motilal Oswal Financial Services
Larsen & Toubro
Financials and valuations
Ratios
Y/E March
Basic (INR)
Adjusted EPS
Growth (%)
Cons. EPS (Fully Diluted)
Growth (%)
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
Turnover Ratios
Debtors (Days)
Inventory (Days)
Asset Turnover (x)
Leverage Ratio
Current Ratio (x)
Debt/Equity (x)
Cash Flow Statement
Y/E March
PBT before EO Items
Add : Depreciation
Others
Less : Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from Investments
(Inc)/Dec in Net Worth
(Inc)/Dec in Debt
Others
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
2017
42.2
43.0
42.2
43.0
59.1
358.3
8.9
21.0
22.6
16.2
20.0
2.1
3.0
0.9
11.8
5.3
93.4
13.8
0.8
2.5
1.8
2018
51.7
22.4
51.7
22.4
65.5
391.7
15.9
30.8
18.5
14.6
17.2
2.0
2.7
1.7
13.2
5.7
101.0
14.8
0.7
2.6
1.8
2019
57.3
10.9
63.5
22.8
77.2
444.7
18.0
28.4
16.7
16.9
19.3
2.2
2.1
1.4
12.9
5.5
100.0
17.3
0.7
2.6
1.8
2020
63.4
10.5
68.0
7.1
85.6
475.3
18.0
26.5
15.1
15.2
18.9
2.1
2.0
1.4
13.3
5.7
102.2
14.4
0.7
2.7
1.9
2021E
49.5
-21.9
123.1
81.0
141.3
576.8
36.9
30.0
19.3
9.2
20.2
2.2
1.7
2.8
8.6
4.5
109.5
14.4
0.6
3.3
1.6
2022E
66.1
33.7
66.1
-46.3
85.2
598.6
19.8
30.0
14.4
15.3
17.3
2.0
1.6
1.5
11.1
5.1
98.6
14.4
0.6
3.2
1.7
(INR m)
2022E
1,50,836
26,679
1,000
-40,592
-6,953
1,30,970
-1,99,685
-68,715
0
0
0
1,81,500
0
-62,219
1,19,281
50,566
2,66,221
3,16,787
2017
87,659
23,699
-7,971
-32,017
43,459
1,14,830
-85,646
29,184
-66,536
-66,536
533
50,509
9,066
-20,931
39,178
1,826
53,899
55,725
2018
1,15,162
19,287
-10,696
-34,034
-34,165
55,554
-1,84,743
-1,29,189
54,449
54,449
495
1,27,683
-4,940
-23,898
99,341
24,600
55,725
80,325
2019
1,42,862
20,840
-11,636
-45,816
-23,921
82,329
-1,73,298
-90,969
-35,366
-35,366
113
1,78,653
10,978
-26,471
1,63,273
36,937
80,325
1,17,262
2020
1,43,142
24,623
-1,176
-40,465
-77,914
48,210
-32,925
15,285
-63,967
-63,967
176
1,41,259
-13,324
-45,513
82,597
33,915
1,17,262
1,51,178
2021E
1,17,004
25,579
1,04,147
-32,690
-50,323
1,63,717
-1,83,350
-19,633
0
0
0
1,65,000
0
-30,324
1,34,676
1,15,043
1,51,178
2,66,221
1 September 2020
6
 Motilal Oswal Financial Services
Larsen & Toubro
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.
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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
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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
1 September 2020
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 Motilal Oswal Financial Services
Larsen & Toubro
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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.
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