30 October 2020
2QFY21 Results Update | Sector: Healthcare
Strides Pharma
Buy
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: INR673
TP: INR790 (+17%)
2Q – COVID-led aberration hurts performance
Prospects remain promising across markets
STR IN
90
60.3 / 0.9
765 / 271
-12/28/77
596
70.3
Financials & Valuations (INR b)
Y/E MARCH
2020 2021E 2022E
Sales
27.5 34.3 39.2
EBITDA
5.3
7.0
8.4
Adj. PAT
1.4
2.8
4.1
EBIT Margin (%)
13.1 14.4 15.6
Benefit of superior product mix offset by reduced operating leverage
Cons. Adj. EPS (INR)
15.2 31.7 45.8
EPS Gr. (%)
72.1 108.8 44.5
STR’s 2QFY21 revenues were up 11% at INR7.9b (our est.: INR8.3b).
BV/Sh. (INR)
282.6 312.1 346.8
EM sales were up 57% YoY to INR1.5b (19% of sales), US sales were up 7%
Ratios
YoY at INR4b (51% of sales), and Other Regulated Markets (OTR) sales were
Net D:E
0.3
0.3
0.2
up 7% YoY at INR2.4b (30% of sales).
RoE (%)
5.2 10.7 13.9
RoCE (%)
6.9 10.4 12.2
The gross margin (GM) expanded 290bp YoY to 61.1% on a superior product
Payout (%)
82.4 24.2 24.2
mix. However, the EBITDA margin was down 70bp YoY to 19.8% (our est.:
Valuations
20.2%) due lower operating leverage (employee cost / other expenses at
P/E (x)
45.1 21.6 15.0
+210bp YoY / +150bp YoY).
EV/EBITDA (x)
15.1 11.4
9.4
Div. Yield (%)
0.5
1.1
1.3
EBITDA was up 7% YoY to INR1.6b (our estimate: INR1.7b).
FCF Yield (%)
1.0
4.8
6.9
PBT before one-off expenses grew 4% YoY to INR804m.
EV/Sales (x)
2.9
2.3
2.0
STR reported exceptional gains of INR131m on gains on FX loans/derivatives,
Strides Pharma (STR)’s 2QFY21 performance came in below estimates due to
COVID-related a) disruptions at its manufacturing facilities and b) softness in
demand in the UK / select European countries. However, the outlook
remains positive, with normalcy back in manufacturing operations.
We cut our earnings estimate by 10.2%/4.9% for FY21/FY22, factoring in
COVID-related disruption in 2QFY21. We value STR on a 12M forward SOTP
basis – EV/EBITDA of 11x for Regulated segment, 6x for Emerging Markets
(EM) segment, and 7x for Institutional segment – to arrive at Target Price of
INR790. We remain positive on STR on the back of a healthy product
pipeline for the Regulated and Institutional segments and market share
gains in existing products. Maintain BUY.
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Sep-20 Jun-20 Sep-19
29.7
29.7
31.3
15.3
19.4
21.2
27.0
26.8
25.3
28.1
24.1
22.3
deferred considerations, and intra-group loans.
Adjusting for the same, PAT was down ~6% at INR493m (our est: INR706m).
Loss of INR300m in its associates in the Biotech and CHC segments led to
YoY decline in adj. PAT, despite YoY growth in PBT.
Sales / EBITDA / adj. PAT for 1HFY21 was up 12.5%/14%/21.7% YoY to
INR15.8b/INR3b/INR1b.
FII Includes depository receipts
Highlights from management commentary
STR experienced price erosion in base products for the first time. STR guided
for USD230m US sales over FY21 (USD104m for 1HFY21), led by market
share gains and new launches. STR has guided for 8+ ANDA launches for
FY21.
Growth prospects in OTR remain promising on the back of enhanced product
offerings as well as reach.
Net debt was INR13b at the end of 2QFY21.
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.
Tushar Manudhane - Research Analyst
(Tushar.Manudhane@MotilalOswal.com)
Bharat Hegde, CFA
(Bharat.Hegde@motilaloswal.com);
Hitakshi Chandrani
(Hitakshi.Chandrani@motilaloswal.com)
 Motilal Oswal Financial Services
Strides Pharma
Valuation and view
We cut our earnings estimate by 10.2%/4.9% for FY21/FY22, factoring in COVID-
related disruption in 2QFY21. With these issues largely resolved, we expect
recovery in 2HFY21, with market share gains for the base portfolio and new
launches.
We expect a 52% earnings CAGR over FY20–23, led by an 11% sales CAGR in the
US, 18% sales CAGR in OTR, and 34% sales CAGR in EM – supported by 240bp
margin expansion.
We roll our price target to INR790 on a 12M forward SOTP basis (EV/EBITDA of
11x for Regulated segment, 6x for EM segment, and 7x for Institutional
segment). Maintain Buy.
FY20
2Q
7,151
37.6
5,685
1,466
203.2
20.5
420
1,046
498.0
14.6
404
130
772
-845
1,617
74
4.6
213
1,331
524
NA
7.3
FY21E
2Q
3QE
7,936 8,716
11.0
19.0
6,363 6,885
1,572 1,830
7.2
1.2
19.8
21.0
528
530
1,044 1,300
-0.2
-5.3
13.2
14.9
369
380
129
145
804 1,065
-180
0
984 1,065
61
133
6.2
12.5
262
147
662
785
493
785
-5.9
2.4
6.2
9.0
FY20 FY21E
(INR m)
FY21 vs Est
2QE %
8,274 -4.1
15.7
6,603
1,671 -5.9
14
20.2
500
1,171 -10.9
12
14.2 -7.1
362
135
944 -14.8
0
944 4.2
109
11.5
130
706 -6.2
706 -30.2
Consolidated – Quarterly Earnings Model
Y/E March
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
YoY Change (%)
Margins (%)
Depreciation
EBIT
YoY Change (%)
Margins (%)
Interest
Other Income
PBT before EO expense
Extra-Ord expense
PBT after EO expense
Tax
Rate (%)
MI & (P)/L of Asso. Cos.
Rep. PAT from Continuing Ops.
Adj. PAT from Continuing Ops.
YoY Change (%)
Margins (%)
1Q
6,858
3.4
5,621
1,237
188.9
18.0
429
808
485.8
11.8
353
103
557
93
464
31
6.7
178
254
341
NA
5.0
3Q
7,324
28.5
5,516
1,808
150.6
24.7
435
1,374
210.2
18.8
396
122
1,100
-171
1,270
113
8.9
235
922
767
203.3
10.5
4Q
6,186
0.4
5,350
837
-9.4
13.5
453
384
-38.8
6.2
403
177
157
1,888
-1,731
-105
6.0
389
-2,016
-274
NA
-4.4
1Q
7,818
14.0
6,308
1,510
22.1
19.3
491
1,019
26.1
13.0
369
123
773
-488
1,261
33
2.6
192
1,036
560
64.1
7.2
4QE
9,803 27,520 34,272
58.5
26.3 24.5
7,689 22,172 27,246
2,113 5,347 7,026
152.5 109.3 31.5
21.6
19.4 20.5
545 1,737 2,094
1,568 3,610 4,931
308.9 161.2 36.7
16.0
13.1 14.4
401 1,557 1,519
152
531
548
1,319 2,584 3,961
0
965 -668
1,319 1,619 4,629
227
113
454
17.2
7.0
9.8
100 1,014
700
992
492 3,474
992 1,358 2,830
NA
72.1 108.2
10.1
4.9
8.3
34.7
8.5
Key Performance Indicators (Consolidated)
Y/E March
INR m
Regulated Market
US
Other Reg Markets
Emerging Markets
Africa
Institutional
Cost Break-up
RM Cost (% of Sales)
Staff Cost (% of Sales)
Other Cost (% of Sales)
Gross Margins(%)
EBITDA Margins(%)
EBIT Margins(%)
1Q
5,164
3,459
1,705
1,281
401
880
FY20
2Q
3Q
6,200
6,786
3,980
4,609
2,220
2,177
980
566
385
295
595
271
4Q
5,191
2,931
2,260
1,025
400
625
1Q
6,344
3,738
2,606
1,503
693
810
FY21E
2Q
3QE
6,433
7,159
4,047
4,655
2,386
2,504
1,538
1,557
836
767
702
790
FY20 FY21E
4QE
8,140 23,783 28,076
4,934 15,422 17,374
3,207 8,361 10,702
1,598 3,854 6,196
698 1,482 2,994
900 2,372 3,202
(INR m)
FY21
2QE
5,448
4,179
2,620
1,476
744
732
46.0
14.2
21.8
54.0
18.0
11.8
41.8
15.3
22.4
58.2
20.5
14.6
35.6
15.2
24.4
64.4
24.7
18.8
39.9
20.1
26.5
60.1
13.5
6.2
38.7
16.6
25.4
61.3
19.3
13.0
38.9
17.4
23.9
61.1
19.8
13.2
38.5
16.0
24.5
61.5
21.0
14.9
36.3
17.9
24.3
63.7
21.6
16.0
40.8
16.1
23.7
59.2
19.4
13.1
38.0
17.0
24.5
62.0
20.5
14.4
38.0
17.5
24.3
62.0
20.2
14.2
30 October 2020
2
 Motilal Oswal Financial Services
Strides Pharma
Conference call highlights
Strides Pharma has invested USD31m in Stelis to date, of its USD41m
commitment.
For the Stelis facility, 4/5 suits are fully commercialized and validated. It would
take 15–18 months before revenues start to pick up.
STR is building a vaccine facility that is expected to be completed by Jan’21. The
facility is expected to have 500m doses of vaccine and 300m doses of lyophilized
vaccine capacity. It is in discussion with vaccine developers in the advanced
stages of trials for licensing.
STR filed one ANDA and received approval for five new ANDAs in the US market.
STR filed eight products and is expected to file 10+ products in 2HFY21 in Other
Regulated Markets.
STR filed Meropenem in the EU and expects approval by May’21.
R&D spend was at INR280m for the quarter and formed 3.5% of sales for the
quarter.
The ETR expectation for FY21 is 10–12%
STR incurred capex of INR1.1b YTD, largely toward maintenance and on
expansion at the West Palm Beach facility.
Valuation and view
STR delivered 5% YoY growth in US sales for 1HFY21. After facing Ranitidine-led
headwinds in 2HFY20, STR was back on track within a short period of three months
(1QFY21). However, COVID-led disruption at its manufacturing facility led to some
moderation in the US sales run-rate in 2QFY21. Nevertheless, STR is expected to be
back on the growth path, with manufacturing operations now normalized. STR has a
healthy pipeline of 34 ANDAs pending approval. Furthermore, it received eight
ANDA approvals in 1HFY21, providing visibility for new launches in the coming
quarters. Considering new launches and market share gains in existing products, we
expect the business to post an 11% CAGR in sales to INR20.9b over FY20–23.
US – Market share gains / New launches to drive growth
STR reported a superior performance with 27% YoY gains in 1HFY21. Strong YoY
growth was seen despite a lower prescription rate / reduced footfall in pharmacies
due to a second wave of COVID in the UK and other select European countries.
However, the order book remains strong and supplies to Arrotex are also expected
to rebound in 2HFY21. It intends to file 10+ products in 2HFY21. Considering these
factors, we expect STR to report an 18.4% CAGR in sales to INR13.9b over FY20–23.
OTR – COVID-led moderation in near term; outlook intact
STR reported 34% YoY growth in the EM business, led by an increase in primary sales
in Africa and steady performance from the Institutional segment. STR is on track for
country-specific registrations for the Tenofovir-Lamivudine-Dolutagravir (TLD)
combination. Revival in the Africa business and new products in the anti-retroviral
(ARV) segment are expected to drive a 33% sales CAGR to INR3.5b over FY20–23.
Emerging Markets seeing revival
30 October 2020
3
 Motilal Oswal Financial Services
Strides Pharma
Valuation and view
We cut our earnings estimate by 10.2%/4.9% for FY21/FY22, factoring in COVID-
related disruption in 2QFY21. With these issues largely resolved, we expect
recovery in 2HFY21, with market share gains in the base portfolio and new
launches.
We expect a 52% earnings CAGR over FY20–23, led by an 11% sales CAGR in the
US, 18% sales CAGR in OTR, and 34% sales CAGR in EM – supported by 240bp
margin expansion.
We roll our price target to INR790 on a 12M forward SOTP basis (EV/EBITDA of
11x for Regulated segment, 6x for EM segment, 7x for Institutional segment).
Maintain Buy.
Exhibit 2: One-year forward P/B
Max (x)
-1SD
222.9
P/B (x)
10.9
8.3
5.7
3.1
0.5
1.0
3.2
4.9
1.5
2.2
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
8.0
Exhibit 1: One-year forward P/E
280.0
210.0
140.0
70.0
0.0
109.7
60.8
9.111.9
17.0
P/E (x)
Min (x)
Avg (x)
+1SD
Source: MOFSL, Company, Bloomberg
Source: MOFSL, Company, Bloomberg
30 October 2020
4
 Motilal Oswal Financial Services
Strides Pharma
Financials and valuations
Consolidated – Income Statement
Y/E March
Total Income from Operations
Change (%)
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
Reported PAT from Continuing Ops.
Adj. PAT from Continuing Ops.
Change (%)
Margin (%)
FY14
13,410
39.4
2,235
16.7
565
1,670
1,089
602
1,183
-266
918
409
44.5
6
-2,333
651
182.9
4.9
FY15
11,959
-10.8
2,288
19.1
640
1,648
474
386
1,560
-74
1,486
532
35.8
-6
16
1,007
54.7
8.4
FY16
28,622
139.3
4,140
14.5
1,313
2,827
1,682
921
2,067
-414
1,653
425
25.7
-88
1,317
1,624
61.3
5.7
FY17
34,834
21.7
6,428
18.5
1,872
4,557
2,269
1,686
3,973
-1,006
2,967
470
15.8
458
2,039
2,886
77.6
8.3
FY18
28,394
-18.5
3,965
14.0
1,540
2,425
1,962
941
1,403
-436
967
97
10.1
168
702
1,007
-65.1
3.5
FY19
21,784
-23.3
2,557
11.7
1,174
1,383
793
408
998
83
1,081
-269
-24.8
457
893
789
-21.6
3.6
FY20
27,520
26.3
5,347
19.4
1,737
3,610
1,557
531
2,584
-965
1,619
113
7.0
1,014
492
1,358
72.1
4.9
FY21E
34,272
24.5
7,026
20.5
2,094
4,931
1,519
548
3,961
668
4,629
454
9.8
700
3,475
2,836
108.8
8.3
FY22E
39,218
14.4
8,353
21.3
2,233
6,121
1,349
588
5,360
0
5,360
563
10.5
700
4,097
4,097
44.5
10.4
(INR m)
FY23E
42,222
7.7
9,204
21.8
2,346
6,858
1,281
633
6,210
0
6,210
714
11.5
700
4,796
4,796
17.1
11.4
Consolidated – Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
FY14
596
9,473
10,068
757
5,466
17
16,308
8,039
3,528
4,511
1,034
995
4,430
9,993
1,760
3,640
2,312
2,281
4,655
2,679
879
1,098
5,338
16,308
FY15
596
10,853
11,449
187
8,917
-54
20,500
9,437
3,792
5,645
1,368
1,712
6,300
9,668
2,077
3,900
1,469
2,223
4,194
2,065
1,268
861
5,474
20,500
FY16
894
25,685
26,579
502
35,418
-502
61,997
18,987
1,468
17,520
9,267
8,149
13,409
25,256
6,131
10,330
3,116
5,679
11,605
7,836
2,943
826
13,652
61,997
FY17
894
26,210
27,104
1,640
36,997
89
65,829
22,233
2,771
19,462
9,670
7,802
15,952
27,582
7,380
9,971
3,295
6,936
14,638
7,521
5,986
1,131
12,944
65,829
FY18
895
23,651
24,546
1,547
29,494
-615
54,971
26,233
4,311
21,922
9,147
3,220
8,159
21,721
5,520
8,822
3,033
4,346
9,220
7,121
1,364
736
12,501
54,971
FY19
895
25,592
26,487
1,530
37,609
327
65,952
28,184
5,485
22,699
13,776
4,530
8,740
28,322
8,742
9,872
5,167
4,543
12,137
8,890
1,447
1,801
16,185
65,952
FY20
896
24,379
25,274
672
21,865
-1,778
46,033
23,923
7,222
16,701
4,286
4,130
11,495
22,921
7,825
9,317
2,371
3,408
13,520
7,978
3,647
1,895
9,402
46,033
FY21E
896
27,013
27,909
672
20,365
-1,778
47,169
27,789
9,316
18,473
4,286
1,388
11,495
26,619
9,616
11,455
1,303
4,244
15,113
8,211
4,542
2,360
11,506
47,169
FY22E
896
30,119
31,015
672
19,365
-1,778
49,275
29,462
11,549
17,913
4,286
840
11,495
31,073
10,893
13,216
2,108
4,856
16,354
8,456
5,198
2,700
14,720
49,275
(INR m)
FY23E
896
33,755
34,651
672
18,366
-1,778
51,912
30,697
13,895
16,802
4,286
731
11,495
36,217
11,653
14,344
4,992
5,228
17,639
9,136
5,596
2,907
18,578
51,912
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
30 October 2020
5
 Motilal Oswal Financial Services
Strides Pharma
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)
Inventory (Days)
Debtor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY14
7.3
13.6
112.6
336.5
NA
94.1
50.4
6.1
4.8
28.8
49.1
-82.3
4.3
4.9
4.4
1.7
48
99
2.1
1.5
-0.1
FY15
11.3
18.4
128.0
71.9
NA
60.8
37.2
5.3
5.7
30.0
10.5
-17.6
9.4
7.3
10.8
1.3
63
119
2.3
3.5
0.1
FY16
18.2
32.8
297.2
2.8
19.8
37.7
20.9
2.3
3.3
22.6
0.4
-32.7
8.5
6.8
8.7
1.5
78
132
2.2
1.7
0.7
FY17
32.3
53.2
303.1
4.0
21.2
21.2
12.9
2.3
2.7
14.8
0.6
-43.2
10.8
8.3
10.1
1.6
77
104
1.9
2.0
0.7
FY18
11.3
28.5
274.5
5.3
68.1
60.8
24.0
2.5
3.1
22.1
0.8
-23.7
3.9
5.1
5.5
1.1
71
113
2.4
1.2
0.7
FY19
8.8
22.0
296.2
2.0
20.1
77.6
31.2
2.3
4.3
36.6
0.3
-28.7
3.1
3.8
3.9
0.8
146
165
2.3
1.7
0.9
FY20
15.2
34.6
282.6
3.7
82.4
45.1
19.8
2.4
2.9
15.1
0.5
6.5
5.2
6.9
8.9
1.2
104
124
1.7
2.3
0.3
FY21E
31.7
55.1
312.1
7.8
24.2
21.6
12.4
2.2
2.3
11.4
1.1
32.9
10.7
10.4
14.6
1.2
102
122
1.8
3.2
0.3
FY22E
45.8
70.8
346.8
9.2
24.2
15.0
9.7
2.0
2.0
9.4
1.3
47.6
13.9
12.2
16.2
1.3
101
123
1.9
4.5
0.2
FY23E
53.6
79.9
387.5
10.7
24.2
12.8
8.6
1.8
1.8
8.1
1.6
71.5
14.6
12.8
17.5
1.4
101
124
2.1
5.4
0.1
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
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
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Forex/ Sales of subsidiary
Closing Balance
Other balances with banks
Total cash and Cash equivalents
FY14
28,899
1,539
1,835
-1,259
-2,607
28,407
-2,717
-4,639
-7,356
47,935
-2,525
40,771
259
1,430
-2,192
-32,683
-33,185
4,869
1,320
-329
5,860
-3,549
2,312
FY15
9,920
640
163
-560
-959
9,205
834
-2,406
-1,572
4,515
-1,590
519
31
3,208
-381
-7,070
-4,213
-2,860
5,860
-16
2,984
-1,515
1,469
FY16
1,464
1,520
998
-770
-3,417
-206
732
-3,658
-2,925
286
-18,876
-22,248
12,264
18,789
-1,347
-251
29,439
7,924
2,984
200
11,107
-7,992
3,116
FY17
FY18
4,971
7,058
1,987
1,939
1,521
1,827
-586
-536
-3,413
-1,907
4,480
8,382
2,881
1,871
-6,746
-3,994
-3,865 -2,123
1,269 12,413
-1,390
-2,593
-6,867
5,826
165
39
5,962
-7,112
-2,370
-2,631
-376
-453
3,382 -10,157
-603 -2,460
11,107
5,151
-5,353
-129
5,151
2,562
-1,856
472
3,295
3,033
FY19
3,444
1,719
1,746
-558
-3,232
3,119
601
-3,164
-2,564
2,560
-881
-1,485
14
4,076
-1,995
-180
1,943
1,058
2,562
39
3,659
1,507
5,167
FY20
485
1,878
1,449
-450
-3,262
100
2,048
-1,463
585
13,090
1,435
13,062
5
-13,843
-1,708
-1,539
-17,094
-1,985
3,659
148
1,823
548
2,371
FY21E
4,629
2,094
970
-454
-3,172
4,068
4,068
-1,125
2,943
0
548
-577
0
-1,500
-1,519
-841
-4,559
-1,068
1,823
-
755
548
1,303
FY22E
5,360
2,233
761
-563
-2,409
5,381
5,381
-1,235
4,256
0
588
-537
0
-1,000
-1,349
-991
-4,040
804
755
-
1,559
548
2,108
(INR m)
FY23E
6,210
2,346
648
-714
-975
7,516
7,516
-1,565
6,391
0
633
-492
0
-999
-1,281
-1,160
-4,140
2,884
1,559
-
4,443
548
4,992
30 October 2020
6
 Motilal Oswal Financial Services
Strides Pharma
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
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.
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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,
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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. registered
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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
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5 Research Analyst has not served as director/officer/employee in the subject company
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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
********************************************************************************************************************************
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
30 October 2020
7
 Motilal Oswal Financial Services
Strides Pharma
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
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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)
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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
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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.
* 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.
-
30 October 2020
8