Motilal Oswal Financial Services

19 October 2020

Results Update | Sector: Real Estate

Oberoi Realty

Estimate changes

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)

OBER IN

364

141.6 / 1.9

584 / 290

-13/-27/-31

188

CMP: INR389



TP: INR480(+23%)

Buy

Some recovery visible with arrival of festive season

For FY21, we have broadly maintained our estimates for commercial office

space and hospitality. However, we have lowered our estimates for retail

due to the delay in normal operation of malls. Moreover, we are enthused

by the pickup in residential segment, and thus, have revised our estimates

on the upside by 53% for FY21. Maintain

Buy

with a revised TP of INR480.

2QFY21 performance:

Revenue was down 35.7% YoY to INR3,161m (v/s est.

INR2,595m). EBITDA declined 12% YoY to INR1,865m YoY (v/s est.

INR983m). However, EBITDA margins expanded 1,570bp to 59.0% (v/s est.

37.9%). Adj. PAT was flat YoY at INR1,377m (v/s est. INR696m).

For 1HY21, revenue / EBITDA / adj. PAT declined 60%/45%/43% YoY.

Residential biz sees strong comeback:

Pre-sales volumes declined 7% YoY

to 0.13msf (+958% QoQ), largely driven by strong bookings in the Exquisite

and Enigma projects. Booking value was up 1% YoY to INR3,273m.

Collections stood at INR1,808m (v/s INR6,954m in 2QFY20 and INR858m in

1QFY21). Site visits have been strong over the last couple of months with

better conversion ratio. 2HFY21 looks promising as we move into the festive

season.

Office on steady footing:

Revenue/EBITDA declined 9%/12% YoY to

INR854m/INR791m, with EBITDA margin contracting 320bp to 92.6%.

Occupancy at Commerze II declined 260bp sequentially to 97.4% while the

same at Commerze I remained muted at 34% (same as 1QFY21).

Revival in Hospitality still sometime away:

Hospitality remained impacted

due to travel restrictions. Revenue declined 78% YoY to INR70m with

EBITDA loss of INR6m. Near-term outlook for the hospitality segment

remains challenging given the prevailing uncertainty around the timeline of

resumption of work-related travel.

(a) Sky City Phase II (Borivali) and Exquisite III (Goregaon) are expected to

be launched by end-FY21. (b) The company has aggressive plans to

monetize its annuity assets (commercial and retail) by bringing in a strategic

investor.

Re-leasing of vacant space in Commerz I and performance of Oberoi mall

due to normalization of operations (opening up of multiplexes) remain the

key triggers for annuity assets. Lack of clarity on return to normalcy of

work-related travel is likely to pose near-term challenges for the hospitality

segment.

Early festive cheer is visible in residential sales pickup in 2QFY21 (up 1%

YoY). OBER’s strong pipeline of project launches in 2HFY21 (Exquisite III, Sky

City Phase II and Thane (in case unified DCR is finalized)) augurs well for the

residential segment as we move into the festive season. We have upgraded

our estimates for FY21/22E by 53%/4% to bake in OBER’s aggressive launch

plans and strong demand dynamics in the residential segment. Maintain

Buy

with a PT of INR480.

Early festive cheer in residential; Commercial office steady



Financials & Valuations (INR b)

Y/E Mar

2020 2021E

22.4

13.7

Net Sales

10.5

7.3

EBITDA

46.8

52.8

EBITDAM %

6.9

5.5

NP (INR b)

19.0

15.0

EPS (INR)

-15.6

-20.7

EPS Gr. (%)

237

252

BV/Sh. (INR)

Ratios

0.1

Net D:E

8.3

6.1

RoE (%)

8.0

5.3

RoCE (%)

Valuations

P/E (x)

16.4

20.7

P/BV (x)

1.3

1.2

EV/EBITDA (x)

11.8

16.7

EV/Sales (x)

5.5

8.8

Shareholding pattern (%)

As On

Sep-20 Jun-20

Promoter

67.7

DII

4.7

4.4

FII

25.4

26.2

Others

2.2

1.7

FII Includes depository receipts

2022E

21.3

11.6

54.6

9.9

27.1

80.6

280

0.1

10.2

7.8

11.5

1.1

10.3

5.6



Sep-19

67.7

4.3

25.8

2.3

Key highlights from management commentary



Valuation and view



Alpesh Thacker – Research Analyst

(Alpesh.Thacker@MotilalOswal.com)

3 September 2019

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Investors are advised to refer through important disclosures made at the last page of the Research Report.

Oberoi Realty

Consolidated - Quarterly Earning Model

Y/E March

Net Sales

YoY Change (%)

Total Expenditure

EBITDA

Margins (%)

Depreciation

Interest

Other Income

PBT before EO expense

Extra-Ord expense

PBT

Tax

Rate (%)

Minority Interest & Profit/Loss of Asso. Cos.

Reported PAT

Adj PAT

YoY Change (%)

Margins (%)

E: MOFSL Estimates

6,033

-32.1

3,680

2,352

39.0

111

239

149

2,151

643

29.9

-12

1,521

-50.9

25.2

(INR M)

FY21E FY21E Variance

(%)

2QE

13,746 2,595

22%

-38.6 -47.2

6,488 1,613

7,257

983

90%

52.8 37.9 2114bp

487

120

759

210

399

6,409

746

6,409

746

1,647

215

25.7 28.9

-702 -166

5,464

696

5,465

696

98%

-20.7 -49.6

39.8 26.8

FY20

4,915 5,274

-17.0 -0.2

2,786 2,975

2,129 2,299

43.3 43.6

113 113

246 199

136

1,906 2,078

540 615

28.3 29.6

-15

-19

1,381 1,482

-35.4

7.5

28.1 28.1

6,155 1,180

7.3 -80.4

2,450 601

3,705 579

60.2 49.1

112 106

201 179

102

3,494 383

998 117

28.6 30.6

-14

-15

2,510 281

61.1 -81.5

40.8 23.8

FY21E

2Q 3QE

3,161 4,180

-35.7 -20.7

1,296 2,069

1,865 2,111

59.0 50.5

103 130

182 195

92 110

1,672 1,896

311 512

18.6 27.0

-16 -110

1,377 1,494

-0.2

0.8

43.6 35.7

FY20

4QE

5,224 22,376

-15.1 -13.4

2,522 11,891

2,702 10,485

51.7

46.9

149

449

203

885

108

478

2,458 9,630

707 2,796

28.8

29.0

-561

-59

2,312 6,893

-7.9 -15.6

44.3

30.8

Key highlights from management commentary



Residential real estate trends:

Branded Grade A developers are seeing strong

traction in demand due to (a) timely completion and delivery of projects, and (b)

product quality.

Early signs of demand pickup:

2QFY21 (barring few days of Sep’20 during

Shradh,

an inauspicious period) saw strong pickup in demand. Strong traction in

site visitations, better conversion ratio (visits/booking) and demand for larger

and ready-to-move-in homes are few of the visible trends. With the traction

continuing into Oct’20, 3QFY21 has started on a strong footing too, which can

fuel robust demand pickup in 2HFY21.

On launch of Sky City Phase II (Borivali):

Despite 34% of unsold inventory in

Phase I of Sky City , OBER has planned to launch Phase II in FY21, which is largely

on account of (a) availability of only higher floors in Phase I, (b) trying to meet

demand of consumers that prefer under construction projects with 3+ years of

waiting period ( as against 1+ year of waiting period for Phase I), and (c)

apartments in Phase I having a servant room, which might see demand during

the current COVID situation.

Residential project timelines:



Exquisite and Esquire: 100% complete and ready-to-move-in.



Sky City Phase I in Borivali – est. completion within 12-15 months.



Enigma and Eternia in Mulund – est. completion within 12-15 months.



Three Sixty west: Occupancy Certificate to be received within 45-60 days.

Labor strength is back to pre-COVID levels. This is largely driven by an inability of

many grade B developers with weaker financial position to start construction

activity due to liquidity constraints. Thus, most of the available labor is

channelized into projects by grade A developers, thus, mitigating the supply

shortage of labor.

19 October 2020

Oberoi Realty



On mall rental restructuring:

In line with industry norms, OBER has also given

50% waiver on the Minimum Guarantee (MG) rent for FY21 to retailers in

Oberoi Mall. For cinemas, they have been given the same deal (50% waiver for

FY21), but they are yet to accept it. Additionally, all leases expiring within one

year have been extended by 12 months. Most of the permissible area is

operational now. Festive season is expected to drive footfalls.

On issue of INR7b NCDs:

The NCDs were issued to lower the overall cost of

capital and extend debt maturity timeline for the portion of debt getting expired

within couple of years.

Key Exhibits

Exhibit 1: Pre sales volume down 7% in 2QFY21

Pre sales voulme (msf)

193%

38%

0.01

-3% 11% -16%

-42%

5% -12%

-95%

0.29 0.24 0.15 0.15 0.24 0.14 0.16 0.13

0.13

6.23 5.68 2.42 3.19 4.01 3.23 3.03 2.30

-7%

-41%

Growth YoY (%)

117%

61%

21%

-36% -43%

26%

-28%

-94%

3.27

0.24

Exhibit 2: Pre sales value grew 1% in 2QFY21

Pre sales Value (INRb)

Growth (%)

Source: MOFSL, Company

Exhibit 3: Occupancy trend at Westin, Mumbai

Westin Hotel Occupancy (%)

84% 81% 80% 84% 80% 78% 79%

62%

Exhibit 4: Occupancy trend across office portfolio

Commerz I

79% 78% 78%

77%

Commerz II

96% 97% 100% 100% 100% 97%

40%

63% 63% 64%

74% 77% 77%

51%

26%

34% 34%

Source: MOFSL, Company

Exhibit 5: Micro market wise pre sales trend

Goregaon

18%

22%

26%

32%

26%

1QFY20

13%

2QFY20

31%

3QFY20

22%

4QFY20

1QFY21

Borivali

13%

46%

Worli

Mulund

30%

39%

58%

33%

2QFY21

Source: MOFSL, Company

28%

14%

Andheri

20%

19%

28%

52%

19 October 2020

Oberoi Realty

Valuation and view

Consolidation in the industry creates medium-to-long term opportunity



Early festive cheer is visible in residential sales pickup in 2QFY21 (up 1% YoY) as

the company is seeing strong traction in site visits and better conversion ratio

(visits/booking). OBER’s strong pipeline of project launches in 2HFY21 (Exquisite

III, Sky City Phase II and Thane (in case unified DCR is finalized)) augurs well for

the residential segment as we move into the festive season. We have upgraded

our estimates for FY21/22E by 53%/4% to bake in the strong demand dynamics

in the residential segment.

Re-leasing of vacant space in Commerz I is likely to bring back traction in the

commercial office space in 2HFY21.

Performance of Oberoi mall largely hinges on its normal operations (permitting

Multiplexes and Family entertainment to operate), which is lower than

expected. We, thus, lower our estimates for the retail segment by 32% for FY21.

Lack of clarity on return to normalcy of work-related travel is likely to keep the

hospitality segment in midst of near-term challenges.

We expect residential business to pick momentum in 2HFY21, largely driven by

new launches and festive demand. Maintain

Buy

with a PT of INR480.

Story in charts

Exhibit 6: Expect revenue to decline 3% annually over

FY20-22E

Revenue from operations (INRb)

104%

55%

14%

-21%

11.1

FY17

12.7

FY18

25.8

FY19

-13%

22.4

FY20

-39%

FY21E

21.3

FY22E

5,698

FY17

6,753

FY18

11,554

FY19

10,480

FY20

7,258

FY21E

11,611

FY22E

13.7

Growth (%)

51.2%

Exhibit 7: EBITDA margin trend

EBITDA (INRm)

53.4%

44.7%

46.8%

EBITDA Margin (%)

52.8%

54.6%

Source: MOFSL, Company

Exhibit 8: Expect adj. PAT to grow 20% annually over

FY20-22E

Adj PAT (INRm)

78.1%

6,893

-15.6%

4,588

FY18

8,169

FY19

FY20

FY21E

Growth (%)

80.6%

Exhibit 9: RoE trend

RoE (%)

11.6%

8.7%

6.8%

7.8%

8.3%

6.1%

10.2%

21.2%

-13.1%

3,786

FY17

5,465

-20.7%

9,870

FY22E

FY16

FY17

FY18

FY19

FY20

FY21E

FY22E

Source: MOFSL, Company

19 October 2020

Oberoi Realty

Exhibit 10: Low net debt to equity ratio

Net Debt to Equity Ratio

0.3

0.1

0.0

0.1

FY16

FY17

FY18

FY19

FY20

FY21E

FY22E

Source: MOSL, Company

19 October 2020

Oberoi Realty

Financials and Valuations

Consolidated - Income Statement

Y/E March

Total Income from Operations

Change (%)

Total Expenditure

% of Sales

EBITDA

Margin (%)

Depreciation

EBIT

Int. and Finance Charges

Other Income

PBT bef. EO Exp.

EO Items

PBT after EO Exp.

Total Tax

Tax Rate (%)

Minority Interest/Profit from JV

Reported PAT

Adjusted PAT

Change (%)

Margin (%)

Consolidated - Balance Sheet

Y/E March

Equity Share Capital

Total Reserves

Net Worth

Minority Interest

Total Loans

Deferred Tax Liabilities

Capital Employed

Gross Block

Less: Accum. Deprn.

Net Fixed Assets

Goodwill on Consolidation

Capital WIP

Total Investments

Curr. Assets, Loans&Adv.

Inventory

Account Receivables

Cash and Bank Balance

Loans and Advances

Curr. Liability & Prov.

Account Payables

Other Current Liabilities

Provisions

Net Current Assets

Appl. of Funds

FY16

14,162

53.5

7,398

52.2

6,763

47.8

490

6,273

428

6,632

2,293

34.6

-16

4,356

37.4

30.8

FY17

11,138

-21.4

5,440

48.8

5,698

51.2

495

5,203

508

5,655

1,869

33.0

3,786

-13.1

34.0

FY18

12,654

13.6

5,902

46.6

6,753

53.4

491

6,262

302

6,495

1,907

29.4

4,588

21.2

36.3

FY19

25,825

104.1

14,271

55.3

11,554

44.7

440

11,113

194

856

11,776

3,607

30.6

8,169

78.1

31.6

FY20

22,376

-13.4

11,897

53.2

10,480

46.8

449

10,031

885

484

9,630

2,796

29.0

-59

6,893

-15.6

30.8

FY21E

13,746

-38.6

6,488

47.2

7,258

52.8

487

6,771

760

399

6,410

1,647

25.7

-702

5,465

-20.7

39.8

(INR M)

FY22E

21,265

54.7

9,654

45.4

11,611

54.6

723

10,888

809

617

10,696

2,749

25.7

-1,923

9,870

80.6

46.4

(INR M)

FY22E

3,636

97,993

1,01,629

12,939

284

1,14,852

20,324

3,569

16,755

11,365

18,062

85,357

58,025

1,748

6,445

19,138

16,687

697

15,949

68,670

1,14,853

FY16

3,393

50,018

53,411

4,734

-1,030

57,116

2,712

246

2,466

488

21,815

49,040

33,393

1,122

3,119

11,406

16,692

425

16,224

32,348

57,117

FY17

3,395

53,864

57,260

8,687

-997

64,949

10,432

983

9,450

1,095

18,243

54,809

37,664

1,058

3,458

12,630

18,648

541

18,017

36,161

64,949

FY18

3,396

57,528

60,924

16,941

-1,087

76,777

11,234

1,470

9,763

1,126

24,200

65,700

42,467

1,812

1,167

20,253

24,012

1,448

22,505

41,687

76,777

FY19

3,636

76,656

80,292

8,361

260

88,912

12,526

1,910

10,616

1,261

29,378

69,983

41,655

1,094

4,253

22,981

22,325

2,323

19,974

47,658

88,912

FY20

3,636

82,659

86,295

11,439

284

98,018

12,824

2,359

10,465

3,055

24,062

74,632

53,173

1,153

1,083

19,223

14,196

859

13,294

60,436

98,018

FY21E

3,636

88,123

91,759

11,939

284

1,03,983

15,824

2,846

12,978

6,252

18,062

75,351

52,837

1,130

3,515

17,870

8,661

468

8,166

66,690

1,03,983

19 October 2020

Oberoi Realty

Financials and Valuations

Ratios

Y/E March

Basic (INR)

EPS

Cash EPS

BV/Share

DPS

Payout (%)

Valuation (x)

P/E

Cash P/E

P/BV

EV/Sales

EV/EBITDA

Dividend Yield (%)

FCF per share

Return Ratios (%)

RoE

RoCE

RoIC

Working Capital Ratios

Fixed Asset Turnover (x)

Asset Turnover (x)

Leverage Ratio (x)

Net Debt/Equity

Consolidated - Cash Flow Statement

Y/E March

OP/(Loss) before Tax

Depreciation

Interest & Finance Charges

Direct Taxes Paid

(Inc)/Dec in WC

CF from Operations

Others

CF from Operating incl EO

(Inc)/Dec in FA

Free Cash Flow

(Pur)/Sale of Investments

Others

CF from Investments

Issue of Shares

Inc/(Dec) in Debt

Interest Paid

Dividend Paid

Others

CF from Fin. Activity

Inc/Dec of Cash

Opening Balance

Closing Balance

FY16

12.0

13.3

146.9

0.0

26.0

23.3

2.1

8.1

17.0

0.0

11.4

8.7

7.7

9.8

5.2

0.2

0.0

FY17

10.4

11.8

157.5

0.0

29.9

26.4

2.0

10.6

20.8

0.0

2.7

6.8

6.2

9.4

1.1

0.2

0.1

FY18

12.6

14.0

167.6

0.0

24.6

22.3

1.9

10.2

19.1

0.0

-7.7

7.8

6.4

9.6

1.1

0.2

0.3

FY19

22.5

23.7

220.8

0.0

13.8

13.1

1.4

4.5

10.1

0.0

-0.7

11.6

10.0

14.8

2.1

0.3

0.1

FY20

19.0

20.2

237.3

0.0

16.4

15.4

1.3

5.5

11.8

0.0

-14.0

8.3

8.0

11.5

1.7

0.2

0.1

FY21E

15.0

16.4

252.4

0.0

20.7

19.0

1.2

8.8

16.7

0.0

-10.2

6.1

5.3

6.9

0.9

0.1

FY22E

27.1

29.1

279.5

0.0

11.5

10.7

1.1

5.6

10.3

0.0

5.8

10.2

7.8

10.4

1.0

0.2

0.1

(INR M)

FY22E

10,696

723

192

-2,749

950

9,812

1,923

11,735

-9,613

2,122

617

-8,996

1,000

-809

191

2,930

3,515

6,445

FY16

6,632

490

332

-2,115

-659

4,680

-149

4,531

-398

4,133

140

-2,048

-2,307

3,258

-3,010

-683

-1,607

-2,042

182

2,937

3,119

FY17

5,623

495

-319

-1,825

-2,180

1,794

-56

1,738

-763

976

-4,071

-4,752

3,820

-527

3,353

339

3,119

3,458

FY18

6,495

491

-129

-2,108

-6,754

-2,005

-17

-2,022

-773

-2,795

-6,006

-6,779

8,306

-996

-818

6,510

-2,291

3,458

1,167

FY19

11,776

440

-251

-3,243

-6,997

1,725

-269

1,456

-1,707

-251

-5,053

-6,760

11,827

-1,103

-1,516

-819

8,389

3,085

1,167

4,253

FY20

9,689

449

885

-2,221

-11,205

-2,404

-416

-2,820

-2,261

-5,081

5,863

-857

2,745

-508

-1,711

-877

-3,095

-3,169

4,253

1,083

FY21E

6,410

487

361

-1,647

-3,822

1,788

702

2,490

-6,198

-3,707

6,000

399

201

500

-760

-260

2,431

1,083

3,515

19 October 2020

Oberoi Realty

NOTES

19 October 2020

Oberoi Realty

Explanation of Investment Rating

Investment Rating

Expected return (over 12-month)

BUY

>=15%

SELL

< - 10%

NEUTRAL

< - 10 % to 15%

UNDER REVIEW

Rating may undergo a change

NOT RATED

We have forward looking estimates for the stock but we refrain from assigning recommendation

*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within

following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.

Disclosures

The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).

Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the

Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial

products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are

available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a

registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and

National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National

Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance

Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.

Details of associate entities of Motilal Oswal Financial Services Limited are

available on the website at

http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf

MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and

buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other

compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have

any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the

specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even

though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report

MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report

should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific

merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the

website at

https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx

A graph of daily closing prices of securities is available at

www.nseindia.com, www.bseindia.com.

Research Analyst views on Subject Company may vary based on Fundamental

research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated

from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.

Regional Disclosures (outside India)

This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability

or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.

For Hong Kong:

This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong

Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst

Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of

research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity

to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these

securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not

located in Hong Kong & are not conducting Research Analysis in Hong Kong.

For U.S.

Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under

applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers

Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any

brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is

intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as

"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which

this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration

provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange

Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-

dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this

chaperoning agreement.

The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.

registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public

appearances and trading securities held by a research analyst account.

For Singapore

In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets

services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and

Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL

in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,

of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the

SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and

inform MOCMSPL.

Specific Disclosures

1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.

2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company

3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months

4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report

5 Research Analyst has not served as director/officer/employee in the subject company

6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months

8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months

9 MOFSL has not received any compensation or other benefits from third party in connection with the research report

10 MOFSL has not engaged in market making activity for the subject company

19 October 2020

Oberoi Realty

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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.

19 October 2020