5 September 2020
1QFY21 Results Update | Sector: Metals
Nalco
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
NACL IN
1,933
67.7 / 1
49 / 24
9/4/-15
468
48.5
CMP: INR36
TP: INR42 (+16%)
Buy
LME recovery and lower costs to improve profitability
Cost reduction leads to better-than-expected profitability
Nalco (NACL) surprised with higher-than-expected EBITDA at INR1.29b (est.:
INR81m), led by cost reduction in the Aluminum business. However, it was
down 33% YoY due to lower prices and volumes.
We raise our FY21 EBITDA estimate by 67% to factor recovery in LME prices,
but maintain FY22 estimates. Maintain
Buy.
Financials & Valuations (INR b)
Y/E MARCH
2020 2021E 2022E
Sales
84.7 84.4 92.9
EBITDA
4.9 9.6 11.0
Adj. PAT
1.4 3.8
4.6
EBITDA Margin (%)
5.8 11.4 11.8
Cons. Adj. EPS (INR) 0.7 2.0
2.4
EPS Gr. (%)
-92.2
174.2 20.9
BV/Sh. (INR)
51.7 51.1 50.0
Ratios
Net D:E
-0.2 -0.2 -0.1
RoE (%)
1.4 3.8
4.7
RoCE (%)
2.0 5.3
6.6
Payout (%)
457.6 127.5 147.6
Valuations
P/E (x)
50.8 18.5 15.3
P/BV (x)
0.7 0.7
0.7
EV/EBITDA(x)
9.6 5.2
5.4
Div. Yield (%)
7.6 6.9
9.6
Shareholding pattern (%)
Jun-20 Mar-20 Jun-19
As On
Promoter
DII
FII
Others
51.5
13.8
9.0
25.6
51.5
14.2
11.3
23.0
52.0
19.0
11.0
18.0
EBITDA declines 40% YoY due to lower LME and volumes
Revenue declined 34% YoY (29% QoQ) to INR13.8b on a lower LME aluminum
price of USD1,493/t (-17% YoY; -12% QoQ) and lower aluminum volumes.
EBITDA at INR1.3b (-38% QoQ) came in above our estimate of INR81m despite
lower-than-expected volumes. We believe this was due to a reduction in fixed
cost and other discretionary costs as other expenses declined 49% YoY to
INR2.1b. Reported EBITDA still declined 40% YoY on lower alumina and
aluminum prices.
The company reported PAT of INR166m (our estimate: loss of INR472m).
Aluminum:
It reported positive EBIT at INR470m after four quarters (v/s
INR3m loss last year); revenue declined to INR9.3b (-37% YoY; -18% QoQ) on
lower LME prices/volumes due to the impact of COVID-19. Aluminum
production was at 98kt (-11% YoY; -3% QoQ). We estimate NACL’s aluminum
sales at 73kt, impacted by lockdown in 1QFY21. Derived realization declined
17% YoY (and 11% QoQ) to USD1,700/t on account of lower LME. Implied CoP
was down 13% QoQ to USD1,613/t (-20% YoY).
Alumina:
Revenue (incl. inter-segment) was at INR7.7b (-17% YoY; -34% QoQ)
and EBIT at INR415m (-73% YoY; -77% QoQ).
Valuation and view
FII Includes depository receipts
Aluminum LME prices have recovered to pre-COVID levels and turned positive
YoY. Alumina prices are also hovering near pre-COVID levels. Accordingly, we
have raised our LME aluminum estimate to USD1,675/t in FY21 (earlier
USD1,575/t) and USD1,750/t (earlier USD,1700/t) in FY22. With integrated
operations, NACL is best placed to benefit from recovery in prices.
We expect NACL to benefit from lower coal prices due to improved coal
availability in India and lower input commodity costs such as furnace oil, etc.
We maintain our positive stance on NACL considering its integrated business
model, high cash levels, and attractive dividend yield.
We value the stock at 5.5x FY22E EV/EBITDA to arrive at TP of INR42.
Buy.
Amit Murarka - Research analyst
(Amit.Murarka@motilaloswal.com)
Basant Joshi - Research analyst
(Basant.Joshi@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
Nalco
Quarterly performance
Y/E March
Net Sales
Change (YoY %)
EBITDA
Alumina-EBITDA (USD/t)
Aluminum - EBITDA (USD/t)
As % of Net Sales
Interest
Depreciation
Other Income
PBT (before EO Item)
Extra-ordinary Income
PBT (after EO Item)
Total Tax
% Tax
Reported PAT
Adjusted PAT
1Q
20,841
-29.9
2,144
106
62
10.3
16
1,264
614
1,477
0
1,477
499
33.8
978
978
FY20
FY21E
FY20 FY21E
FY21 vs Est
2Q
3Q
4Q
1Q
2QE
3QE
4QE
1QE (%)
23,636 20,884 19,359 13,806 24,017 22,712 23,894 84,718 84,430 17,848
-23
-22.3
-23.2
-30.0
-33.8
1.6
8.8
23.4
-26.3
-0.3
-14.4
322
343 2,084 1,291 2,741 2,607 2,962 4,892 9,601
81
1502
57
51
72
36
56
62
81
68
61
57
-157
-148
-10
118
129
125
85
-66
114
-149
1.4
1.6
10.8
9.3
11.4
11.5
12.4
5.8
11.4
0.5
16
17
8
18
13
15
14
57
61
12
1,343 1,341 1,351 1,359 1,355 1,357 1,356 5,298 5,426 1,346
1
566
482 1,064
333
452
386
532 2,726 1,703
553
-40
-472
-532 1,789
247 1,826 1,620 2,124 2,262 5,817
-725
-134
0
0
0
0
0
0
0
0
-472
-532 1,789
247 1,826 1,620 2,124 2,262 5,817
-725
-134
-188
-193
762
80
638
566
742
880 2,027
-253
-132
39.9
36.2
42.6
32.6
34.9
34.9
34.9
38.9
34.8
34.9
-7
-284
-340 1,028
166 1,188 1,054 1,382 1,382 3,790
-472
-135
-284
-340 1,028
166 1,188 1,054 1,382 1,382 3,790
-472
-135
(INR m)
Quarterly performance
Y/E March
Alumina Prodn. (kt)
CoP (USD/t)
Aluminum Prodn. (kt)
CoP (USD/t)
Aluminum Sales (kt)
Alumina Sales (kt)
Avg LME Aluminum (USD/ton)
NSR premiums (USD/ton)
Alumina NSR (USD/ton)
1Q
583
263
111
2,017
103
231
1,792
257
369
FY20
2Q
3Q
477
516
241
222
110
96
2,164 2,145
110
96
386
374
1,762 1,752
212
207
298
273
4Q
585
208
102
1,864
82
412
1,694
211
279
1QE
466
209
98
1,613
73
235
1,493
207
246
FY21E
2QE
3QE
596
516
214
218
103
100
1,781 1,676
113
120
400
327
1,700 1,750
210
215
270
280
4QE
585
219
106
1,880
106
384
1,750
215
300
FY20
2,161
230
418
2,053
391
1,403
1,750
222
305
FY21E
2,164
215
407
1,745
412
1,346
1,673
212
274
FY21
vs Est
1QE
(%)
466
0
190
100
-1
1,852
100
-27
277
-15
1,493
0
210
-2
247
-1
(INR m)
Exhibit 1: Alumina/Aluminum production volumes (kt)
Alumina
105
Aluminium
111 112 110 111 108 111 111 110
96
94
94
99
101 101
102
98
524 444 566 573 526 509 516 566 583 471 538 561 583 477 516 585 466
Source: MOFSL, Company
5 September 2020
2
 Motilal Oswal Financial Services
Nalco
Exhibit 2: Alumina/Aluminum realization (USD/t)
Alumina
1,860 1,751 1,906
2,126 2,305 2,318
Aluminium
2,075 2,049 1,974 1,959 1,905
2,392 2,380 2,561 2,266 2,288
1,700
257 266 277 323 290 314 413 405 548 535 476 394 369 298 273 279 246
Source: MOFSL, Company
Valuation and view
Aluminum LME prices have recovered to pre-COVID levels and turned positive
YoY. Alumina prices are also hovering near pre-COVID levels. Accordingly, we
have raised our LME aluminum estimate to USD1,675/t in FY21 (earlier
USD1,575/t) and USD1,750/t (earlier USD,1700/t) in FY22. With integrated
operations, NACL is best placed to benefit from recovery in prices.
We expect NACL to benefit from lower coal prices due to improved coal
availability in India and lower input commodity costs such as furnace oil, etc. We
maintain our positive stance on NACL considering its integrated business model,
high cash levels, and attractive dividend yield.
We value the stock at 5.5x FY22E EV/EBITDA to arrive at TP of INR42.
Buy.
FY19
29,561
4,414
35,772
FY20
4,892
7,134
20,355
FY21E
9,601
9,134
17,751
FY22E
10,997
5.5
60,485
13,634
7,799
81,917
42
Exhibit 3: Target price calculation
EBITDA
EV/EBITDA (x)
Target EV
add: CWIP
add: cash surplus
Equity Value
Target Price
Key Assumption
USD/INR rate
LME (USD/t)
69.9
2,033
70.9
1,750
74.3
75.0
1,673
1,750
Source: MOFSL, Company
5 September 2020
3
 Motilal Oswal Financial Services
Nalco
Financials and valuations
Income Statement
Y/E March
Net Sales
Change (%)
Total Expenses
EBITDA
% of Net Sales
Depn. & Amortization
EBIT
Net Interest
Other income
PBT before EO
EO income
PBT after EO
Tax
Rate (%)
Reported PAT
Adjusted PAT
Change (%)
2016
68,170
58,575
9,595
14.1
4,261
5,333
33
6,052
11,353
-535
10,818
4,015
37.1
6,803
7,139
2.6
2017
75,430
10.7
64,634
10,797
14.3
4,804
5,993
27
4,075
10,041
402
10,442
2,962
28.4
7,480
7,193
0.8
2018
95,094
26.1
78,311
16,783
17.6
4,804
11,979
20
3,008
14,968
5,421
20,388
6,964
34.2
13,424
9,855
37.0
2019
1,14,993
20.9
85,432
29,561
25.7
4,761
24,800
24
3,259
28,035
-636
27,399
10,075
36.8
17,324
17,726
79.9
2020
84,718
-26.3
79,826
4,892
5.8
5,298
-406
57
2,726
2,262
0
2,262
880
38.9
1,382
1,382
-92.2
2021E
84,430
-0.3
74,829
9,601
11.4
5,426
4,175
61
1,703
5,817
0
5,817
2,027
34.8
3,790
3,790
174.2
(INR m)
2022E
92,880
10.0
81,883
10,997
11.8
5,425
5,572
59
1,533
7,047
0
7,047
2,462
34.9
4,584
4,584
20.9
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Total Loans
Deferred Tax Liability
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventories
Account Receivables
Cash and Bank Balance
Others
Curr. Liability & Prov.
Account Payables
Provisions & Others
Net Curr. Assets
Appl. of Funds
2016
12,886
1,19,063
1,31,949
0
11,641
1,43,590
70,210
4,253
65,957
6,877
9,445
84,825
10,550
2,352
51,692
20,231
23,513
6,559
16,955
61,311
1,43,590
2017
9,665
92,387
1,02,052
511
12,456
1,15,018
80,489
9,044
71,444
5,660
389
67,517
11,559
1,843
35,084
19,031
29,992
8,641
21,351
37,525
1,15,018
2018
9,665
95,384
1,05,048
450
11,515
1,17,013
85,022
13,627
71,395
9,152
1,176
64,415
11,941
2,581
33,619
16,274
29,126
9,774
19,352
35,290
1,17,013
2019
9,328
95,517
1,04,845
668
11,307
1,16,820
91,155
18,297
72,858
8,827
1,758
68,027
12,100
2,405
35,772
17,750
34,650
13,069
21,581
33,377
1,16,820
2020
9,328
90,553
99,881
123
10,606
1,10,610
98,443
23,595
74,848
14,267
2,773
53,609
16,969
1,401
20,355
14,884
34,886
7,956
26,930
18,723
1,10,610
2021E
9,328
89,511
98,839
123
10,606
1,09,568
1,04,443
29,022
75,421
18,267
2,773
47,902
13,879
1,388
17,751
14,884
34,795
7,865
26,930
13,107
1,09,568
2022E
9,328
87,330
96,658
123
10,606
1,07,387
1,10,443
34,447
75,996
27,267
2,773
36,933
12,723
1,527
7,799
14,884
35,582
8,652
26,930
1,351
1,07,387
(INR m)
5 September 2020
4
 Motilal Oswal Financial Services
Nalco
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 (%)
Return Ratios (%)
EBITDA Margins (%)
Net Profit Margins (%)
RoE
RoCE (pre-tax)
RoIC (pre-tax)
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Debtor (Days)
Inventory (Days)
Payable (Days)
Leverage Ratio (x)
Current Ratio
2016
3.7
5.7
68.3
2.0
79.8
9.1
5.9
0.5
0.1
0.4
6.0
14.1
10.5
6.2
8.0
7.1
1.0
0.5
13
56
35
3.6
2017
3.7
6.4
52.8
2.8
110.4
9.0
5.3
0.6
0.4
2.8
8.4
14.3
9.5
7.2
7.9
8.0
0.9
0.7
9
56
42
2.3
2018
5.1
9.4
54.3
4.7
81.5
6.6
3.6
0.6
0.3
1.8
14.0
17.6
10.4
9.5
12.9
16.3
1.1
0.8
10
46
38
2.2
2019
9.2
11.4
54.2
5.8
103.5
3.7
2.9
0.6
0.2
0.9
17.2
25.7
15.4
16.9
24.0
34.6
1.3
1.0
8
38
41
2.0
2020
0.7
3.5
51.7
2.8
457.6
46.8
9.7
0.6
0.5
8.5
8.2
5.8
1.6
1.4
2.0
-0.6
0.9
0.8
6
73
34
1.5
2021E
2.0
4.8
51.1
2.5
127.5
18.5
7.6
0.7
0.6
5.2
6.9
11.4
4.5
3.8
5.3
5.8
0.8
0.8
6
60
34
1.4
2022E
2.4
5.2
50.0
3.5
147.6
15.3
7.0
0.7
0.6
5.4
9.6
11.8
4.9
4.7
6.6
7.9
0.8
0.9
6
50
34
1.0
Cash Flow Statement
Y/E March
Pre-tax profit
Depreciation
(Inc)/Dec in Wkg. Cap.
Tax paid
Others
CF from Op. Activity
(Inc)/Dec in FA + CWIP
Free Cash Flow to firm
(Pur)/Sale of Investments
Interest & div
CF from Inv. Activity
Equity raised/(repaid)
Int. Paid
Debt raised/(repaid)
Dividend (incl. tax)
Other financing activities
CF from Fin. Activity
(Inc)/Dec in Cash
Add: opening Balance
Closing Balance
2016
11,887
4,261
-11
-3,598
-3,732
8,808
-5,986
2,822
-8,555
4,769
-9,772
0
-12
0
-5,428
-5,440
-6,404
58,095
51,692
2017
9,639
4,804
1,217
-2,184
884
14,359
-7,781
6,578
10,178
2,795
5,191
-28,407
-4
511
-8,259
-36,159
-16,608
51,692
35,084
2018
20,388
4,804
-178
-4,825
-5,524
14,666
-8,374
6,292
1,718
1,522
-5,134
0
-1
-61
-10,934
-10,997
-1,465
35,084
33,619
2019
27,399
4,761
3,274
-10,209
-447
24,779
-7,680
17,099
1,272
1,089
-5,319
-5,074
0
218
-12,451
-17,308
2,153
33,619
35,772
2020
2,262
5,298
-9,071
-1,005
-971
-3,486
-8,578
-12,064
2,068
1,353
-5,158
0
-9
-579
-6,185
-6,773
-15,416
35,772
20,355
2021E
5,817
5,426
3,012
-2,027
61
12,289
-10,000
2,289
0
-10,000
0
-61
0
-4,832
-4,893
-2,604
20,355
17,751
(INR m)
2022E
7,047
5,425
1,804
-2,462
59
11,872
-15,000
-3,128
0
-15,000
0
-59
0
-6,765
-6,824
-9,952
17,751
7,799
5 September 2020
5
 Motilal Oswal Financial Services
Nalco
NOTES
5 September 2020
6
 Motilal Oswal Financial Services
Nalco
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
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 Motilal Oswal Financial Services
Nalco
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
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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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