16 September 2020
1QFY21 Results Update | Sector: Metals
SAIL
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 (%)
CMP: INR38
SAIL IN
4,130
157.2 / 2.2
52 / 20
-6/14/8
1205
25.0
TP: INR42 (+10%)
Neutral
EBITDA seen to be improving, but leverage to remain high
Net debt/EBITDA remains discomforting at 5x
SAIL’s 1QFY21 result was weak, as expected, with EBITDA loss of ~INR4.0b
posted due to weak domestic demand and prices. The outlook, however, has
improved, with both demand and pricing recovering in the quarter.
We expect better volumes and pricing to drive a 30% CAGR in EBITDA over
FY20–22E. Net debt, however, is expected to remain elevated at INR467b in
FY22, implying 5x net debt/EBITDA. The stock also trades at 6.3x EV/EBITDA,
implying limited upside. Thus, we maintain
Neutral,
with TP of INR42.
Standalone revenue declined 44% QoQ to INR90.7b (our estimate: INR93.7b)
in 1QFY21 on 40% QoQ (32% YoY) decline in volumes to 2.2mt (in-line). This
was weighed by weak domestic demand due to country-wide lockdown in
1QFY21. Share of exports stood at ~24% of total volumes.
Derived realization declined 6% QoQ to INR40,534/t (our estimate:
INR42,194/t) on lower steel prices and an adverse product mix.
SAIL’s high fixed cost structure impacted margins adversely as negative
operating leverage inflated fixed cost (such as employee cost) by
~INR2,100/t and other expenses by ~INR2,000/t.
Lower realization, coupled with negative operating leverage, led to per ton
EBITDA loss of ~INR1,801 (est.: -524/t) v/s gains of INR5,218/t in 4QFY20.
As a result, SAIL reported EBITDA loss of INR4.0b v/s EBITDA of INR19.5b in
4QFY20 (our estimate: INR1.2b loss).
The company reported PBT loss of INR19.9b (our estimate: INR18.2b) and
PAT loss of INR12.7b (v/s adj. PAT of INR2.9b in 4QFY20).
SAIL registered sales of 1.58mt in Jul’20 (+50% YoY) and 1.43mt in Aug’20
(up 35% YoY). This resulted in decline of ~25% in finished steel inventory
levels to 1.23mt at Aug-end v/s 1.65mt in Jun’20.
Avg NSR stood at INR35,400/t in 1QFY21, lower by INR3,000/t QoQ. Average
NSR for 2QFY21 is expected to be higher by ~INR3,000/t QoQ.
SAIL guided for improvement in longs steel prices, led by demand
improvement post the monsoons.
In 2QFY21, raw material cost is likely to benefit from decline in coking coal
prices. Coking coal prices, which stood at INR12,500/t in Jun’20, declined to
INR10,800/t in Aug’20. Higher operating leverage should reduce the impact
of fixed cost on a per ton basis.
SAIL expects to sell 16.0mt of steel in FY21, targeting exports of 2.4mt. Over
Apr–Aug, it had already exported 1.0mt.
SAIL’s gross debt stood at INR544b at 1QFY21-end; however, it declined to
INR498b at Aug-end owing to improved sales and liquidation of inventory.
SAIL has sold 500kt of iron ore from its mines thus far in 2QFY21 (100kt in
1QFY21).
Financials & Valuations (INR b)
Y/E MARCH
2020 2021E 2022E
Sales
EBITDA
Adj. PAT
EBITDA Margin (%)
Cons. Adj. EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
Ratios
Net D:E
RoE (%)
RoCE (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA(x)
FCF Yield (%)
-80.7
0.4
12.1
10.9
0.4
7.8
6.7
0.3
6.3
1.3
-0.5
3.3
1.2
3.4
5.4
1.0
5.4
6.8
616.6 629.7 694.3
57.1
-1.9
9.3
-0.5
NA
83.3
14.4
13.2
3.5
NA
98.5
23.5
14.2
5.7
64.0
Negative operating leverage leads to EBITDA loss
100.5 103.5 108.7
Volumes improving on market share gains; NSR higher by 3000+/t QoQ
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Jun-20 Mar-20 Jun-19
75.0
75.0
75.0
14.2
14.6
15.4
2.8
2.9
3.9
8.0
7.5
5.7
FII Includes depository receipts
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
SAIL
Valuation and view
Y/E March
Sales (m tons)
Change (YoY %)
Realization (INR per ton)
Change (YoY %)
Net Sales
Change (%)
NSR to RM Spread (INR/t)
EBITDA
EBITDA per ton (INR)
Interest
Depreciation
Other Income
PBT (before EO Inc.)
EO Income(exp)
PBT (after EO Inc.)
Total Tax
% Tax
Reported PAT
Adjusted PAT
Change (YoY %)
1Q
3.2
-0.7
45,614
-6.2
1,48,200
-6.8
24,841
15,819
4,869
7,884
8,725
1,828
1,039
1,039
351
33.8
688
688
-90.5
We expect sales volumes to improve marginally by 1% in FY21, after factoring
10% volume growth for the remaining 9MFY21. We expect SAIL to post ~8%
volume growth to 15.6mt in FY22, implying a 4.5% CAGR over FY20–22.
With improved pricing, lower coking coal costs, and better operating leverage,
we expect SAIL to record EBITDA/t in excess of INR6,000/t in 2QFY21. We expect
volume recovery and pricing in 2HFY21 to be supported by demand recovery in
Infra and Construction post the monsoons.
Despite an expected reduction in net debt by INR69b to INR465b over FY20–
22E, net debt/EBITDA would stay elevated at ~6x in FY21 and 5x in FY22. This
remains a key concern as it makes the company vulnerable in the event of a
downcycle in steel prices.
We value the stock at 6.5x FY22E EV/EBITDA at INR42/sh. Maintain
Neutral.
Quarterly Performance (Standalone) – INR m
FY20
FY21E
FY20
FY21 FY21E vs Est
2Q
3Q
4Q
1Q
2QE
3QE
4QE
1QE (%)
3.1
4.1
3.7
2.2
4.4
4.0
3.8
14.2
14.4
2.2
1
-9.4
26.4
-9.4
-31.1
38.8
-3.0
2.0
0.8
1.1 -31.7
44,878 40,443 43,194 40,534 43,534 45,034 44,534 43,328 43,747 42,194
-4
-6.7
-17.3
-3.6
-11.1
-3.0
11.4
3.1
-8.7
1.0
-7.5
1,41,274 1,65,413 1,61,718 90,675 1,90,244 1,78,664 1,70,070 6,16,606 6,29,653 93,670
-3
-15.5
4.5
-12.6
-38.8
34.7
8.0
5.2
-7.9
2.1 -36.8
24,712 18,495 26,930 22,562 25,380 27,015 26,642 23,538 25,728 23,002
11,597
9,976 19,538 -4,028 28,670 31,546 26,924 56,930 83,112 -1,163
246
3,684
2,439
5,218 -1,801
6,561
7,952
7,050
4,000
5,774
-524
244
9,404
8,494
9,086
8,863
9,325
8,799
8,592 34,868 35,579 9,086
9,011
9,263 10,552
9,733
9,926 10,117 10,160 37,551 39,936 9,655
1,587
1,866
4,570
2,777
1,587
1,866
1,866
9,852
8,097 1,708
-5,230 -5,914
4,469 -19,847 11,006 14,497 10,038 -5,636 15,694 -18,196
9
37,342
37,342
-5,230 -5,914 41,812 -19,847 11,006 14,497 10,038 31,707 15,694 -18,196
9
-1,802 -1,618 14,560 -7,144
3,082
4,059
2,811 11,491
2,808 -5,095
34.5
27.4
34.8
36.0
28.0
28.0
28.0
36.2
17.9
28.0
-3,428 -4,296 27,252 -12,703
7,924 10,438
7,227 20,216 12,887 -13,101
-3
-3,428 -4,296
2,913 -12,703
7,924 10,438
7,227 -4,123 12,887 -13,101
-3
-159.5 -168.0
-42.2 -1,945.2 -331.1 -343.0
148.1 -116.9 -412.5
1QFY19
48,631
3.3
3.4
-12,793
77,031
22,229
36,861
25,764
-3,733
22,478
6,486
10,756
28,993
17,242
7,877
2QFY19
48,109
3.5
3.4
426
75,009
21,602
39,319
23,650
127
22,391
6,448
11,737
26,401
18,185
6,806
3QFY19
48,921
3.2
3.6
-21,273
83,810
21,397
36,860
25,782
-5,888
23,197
5,922
10,202
29,602
16,124
7,965
4QFY19
44,788
4.1
3.9
6,474
87,060
23,075
47,357
22,145
1,647
22,147
5,870
12,047
22,151
17,917
5,359
1QFY20
45,614
3.2
3.4
-13,786
81,277
20,461
36,084
15,819
-4,015
23,669
5,959
10,508
24,841
16,467
4,869
2QFY20
43,515
3.1
3.3
-10,341
73,822
19,591
35,182
11,597
-3,087
22,042
5,849
10,505
23,349
16,354
3,684
3QFY20
40,443
4.1
3.7
19,396
70,372
20,244
46,000
9,976
4QFY20
43,194
3.7
4.0
-5,767
66,658
27,518
42,750
19,538
1QFY21
40,534
2.2
2.3
-3,395
43,599
19,929
24,307
-4,028
Exhibit 1: Quarterly per ton trend
Avg. Rev. (INR/ton)
Volumes (m tons)
Sales
Prodn. (net of interplant transfer)
Expenditure (INR m)
Inc(-)/Dec in stock & captive cons.
Consumption of Raw Materials
Staff cost
Others
EBITDA
Costs per ton of production (INR)
Inc(-)/Dec in stock & captive cons.
Consumption of Raw Materials
Staff cost
Others
Gross Margins per ton of sales
Conversion cost per ton of prodn.
EBITDA per ton of sales
5,303
-1,444
-1,490
19,240
16,689
19,139
5,535
6,890
8,749
12,577
10,704
10,670
18,495
26,930
22,562
18,111
17,593
19,419
2,439
5,218
-1,801
Source: MOFSL, Company
16 September 2020
2
 Motilal Oswal Financial Services
SAIL
Conference call highlights
COVID-19 impacted the dispatch of steel in Apr’20 due to the absence of
domestic demand. However, volumes saw an uptick over Jul–Aug on improving
domestic steel demand, higher exports, and market share gains at the expense
of secondary steel producers. As a result, SAIL’s finished steel inventory, which
stood at 1.65mt in Jun’20, declined to 1.23mt at Aug-end.
In 1QFY21, SAIL sold 2.2mt of steel, of which exports stood at 0.5mt. Sales in
Jun’20 stood at INR1.28mt. SAIL registered sales of 1.58mt in Jul’20 (+50% YoY)
and 1.43mt in Aug’20 (up 35% YoY).
Avg NSR in 1QFY21 stood at INR35,400/t, lower by INR3,000/t QoQ. NSR for flats
stood at ~INR35,000/t, whereas longs NSR stood at INR42,150 (incl. rails). Longs
NSR excl. rails stood much lower at INR30,300/t due to a higher proportion of
semis.
Post hikes of INR2,500/t in Aug, NSR stood at INR37,600/t. This is expected to
increase further in Sep, led by hikes of INR1,000–1,200/t across product ranges
in the month. Average NSR for 2QFY21 is expected to be higher by ~INR3,000/t.
SAIL guided for improvement in longs steel prices, led by demand improvement
post the monsoons.
In 2QFY21, raw material cost is likely to benefit from decline in coking coal
prices. Coking coal prices, which stood at INR12,500/t in Jun’20, declined to
INR10,800/t in Aug’20. Higher operating leverage should reduce the impact of
fixed cost on a per ton basis.
SAIL expects to sell 16.0mt of steel in FY21, targeting exports of 2.4mt. Over
Apr–Aug, it had already exported 1.0mt.
SAIL maintained its capex guidance for FY21 at INR40.0b.
SAIL’s gross debt stood at INR544b at 1QFY21-end; however, it declined to
INR498b at Aug-end owing to improved sales and liquidation of inventory.
Receivables from the Railways remain in excess of INR50b (INR55b at FY20-end).
SAIL expects receivables from the Railways to remain elevated due to budgetary
constraints at the latter’s end; however, if the need arises, SAIL would realize
the receivables through the factoring of invoices.
SAIL has sold 500kt of iron ore from its mines thus far in 2QFY21 (100kt in
1QFY21). It still awaits clearances from the state govts of Odisha, Chhattisgarh,
and Jharkhand for the sale of 42mt of sub-grade iron ore lying in its iron ore
mines.
16 September 2020
3
 Motilal Oswal Financial Services
SAIL
Valuation and view
We expect sales volumes to improve marginally by 1% in FY21, after factoring
10% volume growth for the remaining 9MFY21. We expect SAIL to post ~8%
volume growth to 15.6mt in FY22, implying a 4.5% CAGR over FY20–22.
With improved pricing, lower coking coal costs, and better operating leverage,
we expect SAIL to record EBITDA/t in excess of INR6,000/t in 2QFY21. We expect
volume recovery and pricing in 2HFY21 to be supported by demand recovery in
Infra and Construction post the monsoons.
Despite an expected reduction in net debt by INR69b to INR465b over FY20–
22E, net debt/EBITDA would stay elevated at ~6x in FY21 and 5x in FY22. This
remains a key concern as it makes the company vulnerable in the event of a
downcycle in steel prices.
We value the stock at 6.5x FY22E EV/EBITDA at INR42/sh. Maintain
Neutral.
Exhibit 2: Target price calculation
YEAR
Sales (m tons)
EBITDA (INR per ton)
EBITDA
Target EV/EBITDA(x)
Target EV
less: Net Debt (INR m)
Equity value
Target price (INR/sh.)
2017
13.1
51
671
2018
14.1
3,705
52,176
2019
14.1
6,916
97,615
2022E
15.6
6,314
98,507
6.5
6,40,295
5,33,576 4,94,842 4,64,794
1,75,501
42
Source: MOFSL, Company
2020
14.2
4,012
57,097
2021E
14.4
5,786
83,279
4,10,168
4,50,632
4,48,823
16 September 2020
4
 Motilal Oswal Financial Services
SAIL
Story in charts
Exhibit 3: Volumes to grow at ~4.5% CAGR over FY20–22E
18
Exhibit 4: Realization seen improving in FY22
50,000
(mt)
12.1
13.1
14.1
14.1
14.2
14.4
15.6
(INR/t)
32,290 33,814
47,444
40,877
43,328 43,747 44,500
16
45,000
14
40,000
35,000
12
30,000
10
25,000
8
20,000
6
15,000
4
10,000
2
5,000
0
0
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 5: EBITDA to grow at ~32% CAGR over FY20–22E
120,000
Exhibit 6: Expect higher operating cashflows over FY21–22E
Operating CF - INR b
FCF (INR b) post finance cost and capex
107
40
62
22
72
31
0
-6
-48
FY16
23
97
EBITDA (Rs m)
6,896
3,693
380
-33,551
29
EBITDA per ton
5,774
6,303
100,000
80,000
4,000
60,000
40,000
20,000
51,999 97,341 56,930 83,112 98,340
0
-20,000
-40,000
-33
-58
FY17
FY18
FY19
-87
FY20
FY21E
FY22E
-60,000
-2,773
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 7: Net-debt to decline, but leverage remains high in
FY21E
Net Debt
Net Debt/EBITDA (RHS)
534
495
451
410
348
8.6
4.6
9.3
5.9
4.7
449
465
Exhibit 8: Returns ratios to improve over FY21–22E
RoE
RoCE (pre-tax)
6.8
3.4
0.3
-7.1
-9.9
FY16
FY17
FY18
FY19
FY20
FY21E
-0.5
5.4
FY16
FY17
FY18
FY19
FY20
FY21E
FY22E
FY22E
Source: Company, MOFSL
Source: Company, MOFSL
16 September 2020
5
 Motilal Oswal Financial Services
SAIL
Financials and valuations
Income Statement (Consolidated)
Y/E March
Net Sales
Change (%)
EBIDTA
Change (%)
EBITDA per ton (INR)
Depreciation
EBIT
Interest
Other income
PBT before EO
Extraordinary Item
PBT
Total Tax
Effective Rate (%)
Reported PAT
Change (%)
Share of Asso/JV
Minority Interest
Adjusted PAT
Change (%)
Balance Sheet (Consolidated)
Y/E March
Sources of Funds
Share Capital
Reserves and Surplus
Share holders fund
Loans
Deferred Tax Liability
Minority Interest
Capital Employed
Application of Funds
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventory
Sundry Debtors
Cash & Bank Balances
Other assets
Loans and Advances
Current Liabilities
Sundry Creditors
Other Current Liabilities
Provisions
Net Current Assets
Application of Funds
2016
3,90,984
-29,025
-159.2
-2,399
24,044
-53,069
23,005
5,290
-70,784
-70,784
-29,377
41.5
-41,406
-291.9
-359
-41,765
-293.5
2017
4,45,018
13.8
671
-102.3
51
26,816
-26,145
25,278
4,495
-46,929
-2,167
-49,096
-19,595
39.9
-29,501
-28.8
1,939
-26,259
-37.1
2018
5,75,600
29.3
52,176
7,677
3,705
30,660
21,516
28,228
4,152
-2,559
-5,556
-8,115
-2,452
30.2
-5,663
-80.8
2,849
1,063
-104.0
2019
6,69,736
16.4
97,615
87
6,916
33,853
63,762
31,549
4,945
37,158
-3,894
33,264
12,005
36.1
21,258
-475.4
2,229
25,976
2,344
2020
6,16,642
-7.9
57,097
-42
4,012
37,557
19,540
34,868
9,058
-6,270
37,342
31,073
11,809
38.0
19,264
-9.4
1,943
-1,944
-107
2021E
6,29,689
2.1
83,279
45.9
5,786
39,943
43,337
35,579
7,303
15,060
15,060
2,643
17.5
12,418
-35.5
1,943
14,361
-838.8
(INR m)
2022E
6,94,273
10.3
98,507
18.3
6,314
41,797
56,710
33,292
6,608
30,025
30,025
8,420
28.0
21,606
74.0
1,943
23,549
64.0
(INR m)
2022E
41,305
4,07,820
4,49,125
4,88,026
-21,075
0
9,16,076
12,51,328
5,22,725
7,28,603
47,533
32,404
2,37,765
66,574
23,232
1,00,356
8,502
76,085
1,88,087
64,731
1,07,527
9,16,067
2016
41,305
3,60,209
4,01,514
3,51,414
-16,698
7,36,230
7,74,222
3,14,793
4,59,428
2,49,272
22,790
1,47,082
31,514
3,456
77,630
5,151
39,904
1,60,970
59,221
4,739
7,36,230
2017
41,305
3,29,117
3,70,423
4,13,957
-38,488
0
7,45,892
8,41,918
3,38,915
5,03,003
2,32,754
24,755
1,57,361
29,347
3,788
81,395
5,263
52,258
1,74,303
65,213
-14,620
7,45,892
2018
41,305
3,28,161
3,69,467
4,54,087
-41,620
0
7,81,934
9,55,829
3,69,575
5,86,254
1,83,954
26,289
1,70,243
38,710
3,456
98,731
5,154
75,330
1,92,655
62,871
-14,563
7,81,934
2019
41,305
3,55,156
3,96,462
4,51,700
-28,668
0
8,19,494
10,17,173
4,03,428
6,13,745
1,60,136
29,748
1,95,103
44,975
2,877
98,091
6,180
72,321
1,92,930
66,110
15,865
8,19,494
2020
41,305
3,73,797
4,15,102
5,38,026
-20,222
0
9,32,907
11,31,328
4,40,985
6,90,343
87,533
32,404
2,38,363
88,447
4,450
1,00,356
7,150
63,331
1,88,087
64,731
1,22,617
9,32,897
2021E
41,305
3,86,215
4,27,520
5,38,026
-23,976
0
9,41,569
11,91,328
4,80,928
7,10,400
67,533
32,404
2,24,273
77,633
43,184
1,00,356
7,601
69,007
1,88,087
64,731
1,31,223
9,41,560
16 September 2020
6
 Motilal Oswal Financial Services
SAIL
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
Book Value per Share
Dividend Per Share
Valuation (x)
P/E
Cash PE
EV/EBITDA
EV/Sales
EV( USD/Ton)
Price to Book Value
Profitability Ratios (%)
EBITDA Margin
RoE
RoCE (pre-tax)
RoIC (pre-tax)
Turnover Ratios
Debtors (Days)
Inventory (Days)
Creditors (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
Cash Flow Statement
Y/E March
EBITDA
(Inc)/Dec in WC
Direct Taxes Paid
Other Items
CF from Oper. Activity
(Inc)/Dec in FA & CWIP
Free Cash Flows to Firm
Interest and Dividend
(Pur)/Sale of Invest.
CF from Inv. Activity
Issue of Shares
Inc / (Dec) in Debt
Interest Paid
Dividends Paid
CF from Finan. Activity
Inc / ( Dec) in Cash
Add: Opening Balance
Closing Balance
2016
-10.1
-4.2
97.2
2017
-6.4
-0.6
89.7
2018
0.3
6.1
89.4
2019
6.3
13.3
96.0
2020
-0.5
13.8
100.5
2021E
3.5
12.7
103.5
2022E
5.7
15.3
108.7
-3.8
-9.0
-17.4
1.3
1,018
0.4
-7.4
-9.9
-6.3
-11.7
29
137
35
0.5
0.9
-6.0
-58.5
845.3
1.3
1,052
0.4
0.2
-7.1
-2.9
-5.3
24
129
43
0.6
1.1
147.7
6.3
11.6
1.1
1,052
0.4
9.1
0.3
3.4
4.1
25
108
53
0.7
1.2
6.0
2.8
6.2
0.9
1,047
0.4
14.6
6.8
8.6
10.7
25
106
46
0.8
1.1
-80.7
2.8
12.1
1.1
1,183
0.4
9.3
-0.5
3.3
2.7
52
141
41
0.7
1.3
10.9
3.0
7.8
1.0
1,105
0.4
13.2
3.4
5.4
5.4
45
130
40
0.7
1.2
6.7
2.5
6.3
0.9
972
0.3
14.2
5.4
6.8
7.0
35
125
40
0.8
1.0
(INR m)
2022E
98,507
4,644
-6,419
96,732
-40,000
56,732
6,608
-33,392
-50,000
-33,292
-83,292
-19,953
43,184
23,232
2016
-29,025
57,506
3,060
8,886
40,428
-64,930
-24,502
-1,864
-1,373
-68,167
31,675
-23,005
-1,243
7,427
-20,312
23,768
3,456
2017
671
17,457
125
3,348
21,601
-54,267
-32,666
-38
16
-54,290
58,300
-25,278
33,021
333
3,456
3,788
2018
52,176
11,183
-1,371
-353
61,635
-66,045
-4,410
116
1,267
-64,662
31,210
-28,515
2,694
-333
3,788
3,456
2019
97,615
-26,646
22
1,161
72,152
-38,805
33,347
1,301
265
-37,239
-2,387
-33,104
-35,491
-579
3,456
2,877
2020
57,097
-1,06,582
-935
44,249
-6,171
-43,813
-49,984
1,464
62
-42,287
89,074
-36,538
-2,505
50,032
1,573
2,877
4,450
2021E
83,279
30,581
-6,849
1,07,011
-40,000
67,011
7,303
-32,697
-35,579
-35,579
38,734
4,450
43,184
16 September 2020
7
 Motilal Oswal Financial Services
SAIL
NOTES
16 September 2020
8
 Motilal Oswal Financial Services
SAIL
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 - MOFSL) 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
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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.
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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
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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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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
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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
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The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
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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
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Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
16 September 2020
9
 Motilal Oswal Financial Services
SAIL
********************************************************************************************************************************
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
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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
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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
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Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
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.
* MOFSL 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.
16 September 2020
10