Interglobe Aviation
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 (%)
Financials & Valuations (INR b)
Y/E March
2020 2021E
Sales
357.6 164.3
EBITDAR
104.0
8.8
NP
56.2 -49.5
EPS (INR)
146.2 -128.8
EPS Gr. (%)
NM -188.1
BV/Sh (INR)
152.5
23.7
Ratios
Net D:E
0.9
6.6
RoE (%)
87.7 -146.3
RoCE (%)
48.4 -14.1
Payout (%)
0.0
0.0
Valuations
P/E (x)
9.1 -10.3
P/BV (x)
8.7
55.9
Adj.EV/EBITDAR(x)
5.7
68.6
Div. Yield (%)
0.0
0.0
FCF Yield (%)
-2.8
-0.3
INDIGO IN
384
512.2 / 6.7
1541 / 765
3/23/-5
2917
25.1
30 October 2020
2QFY21 Results Update | Sector: Aviation
CMP: INR1,323
TP: INR1,350 (+2%)
Neutral
Volume recovery remains key to earnings
INDIGO reported better-than-estimated ASK/RPK growth in 2QFY21, while yield
was lower than estimates. This resulted in-line revenue for 2QFY21.
INDIGO’s cash burn reduced to INR250m in 2QFY21 (from ~INR300m as of 30
th
Jun’20) as the company undertook cost reduction initiatives for leasing, payroll
and other costs (like non-aircraft rentals, IT costs, etc.). Relatively smaller increase
in supplementary rentals to capacity with further reduction in employee cost and
huge forex gain led to beat on our EBITDA est. at INR2.1b.
Going forward, employee expenses are likely to increase (it stood at INR6.9b in
2QFY21, down ~40% YoY), as capacity ramp-up from here on.
For 3QFY21, INDIGO has given capacity guidance (ASK) at ~60% YoY. Currently, the
company is operating at ~58% of last year’s domestic capacity, with International
flights running at 20% capacity currently. Furthermore, capacity is expected to
reach ~80% by end-CY20 or early-CY21.
Nevertheless, as per daily passenger data published by MoCA, domestic passenger
demand stands at ~40% of the last year in Oct’20.
In lieu of the above, even INDIGO has highlighted headwinds over increase in PLFs
from current levels as more capacity is deployed in the domestic market. Delay in
recovery of PLFs could mean higher operating costs for airlines. This would also
pressurize yields (that are on the higher end since couple of quarters).
Despite the current state of uncertainty in the industry, INDIGO trades close to
pre-COVID levels (mere -10% v/s Feb’20 level). We continue to believe in various
pre-emptive measures that are undertaken by INDIGO to focus and strengthen
each of its business verticals and to come out strong from the current crisis.
We remain Neutral on the stock, and await further clarity on festive season
demand over Nov’20-Jan’21.
2022E
335.8
79.8
20.9
54.3
-142.1
71.4
-2.2
114.2
20.5
12.0
24.4
18.5
6.0
0.4
24.7
Cash burn at INR250m per day to reduce further
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Sep-20
74.9
7.7
14.8
2.7
Jun-20
74.9
7.6
14.8
2.8
Sep-19
74.9
5.4
15.5
4.3
FII Includes depository receipts
During 2QFY21, ASK was higher than our est. at 8.9b (v/s our est. of 7.3b,
-63% YoY). INDIGO gradually deployed capacities during 2QFY21, with
capacity at 47% YoY at end-Sep’20.
PLFs were in line with est. at 65%, thus RPK came in at 5.8b (v/s est. INR4.7b,
-71% YoY). Yield stood at INR3.83/RPK (+9% YoY, -15% QoQ).
Thus, revenue stood in line with est. at INR27.4b (-66% YoY). RASK was lower
YoY/QoQ, owing to lower PLFs, which tanked due to various state-led travel
advisories and imposition/extension of further lockdowns.
INDIGO reported EBITDA level profit of INR2.1b (v/s loss of INR5.8b as per
our est., INR0.2b in 2QFY20 and INR16.1b in 1QFY21).
Forex gains stood at INR5.1b.
Reported PAT came in at a loss of INR12b (v/s loss of INR18.2b as per our
est., INR10.7b in 2QFY21 and INR28.5b in 1QFY21).
Sarfraz Bhimani - Research Analyst
(Sarfraz.Bhimani@MotilalOswal.com)
Swarnendu Bhushan- Research Analyst
(Swarnendu.Bhushan@MotilalOswal.com)
3 September
research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P
1
Motilal Oswal
2019
Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
Indigo
Net aircraft addition stood at eight new planes during 2QFY21
Number of A320neo aircraft increased by eight to 116 planes and A321neo
aircraft increased by six to 24 planes. Simultaneously, number of A320ceo
aircraft declined by six to 117 planes during the quarter.
INDIGO will continue on its pre-COVID schedule of retiring A320ceo aircraft (i.e.
at a rate of 30-40 aircraft per year) - replacing all by Dec’22.
INDIGO is currently providing services to 59 domestic destinations and five
international destinations through air bubbles.
During the quarter, INDIGO monetized ~INR18b by completing the sale and
lease-back of four ATRs and three A320ceo aircraft (thus, the company now
owns 22 planes v/s 29 in the last quarter).
Net cash burn for 2QFY21 was INR5b (considering the daily cash burn and
factoring the monetization). Resulting cash at end-1HFY21 stood at INR179.3b
(Free cash: INR69.7b, restricted cash: INR109.6b).
During 1HFY21, INDIGO has generated additional liquidity of ~INR32-33b, out of
the total plan to generate additional liquidity of INR60b.The company has
reiterated that it would continue on various already planned measures to
complete the target. INDIGO also has additional credit from banks to the tune of
INR6b (approved for working capital requirements).
The ASK guidance is subject to support from government framework. Most
importantly, there has been a huge change in demand dynamics for corporate
travel. At the same time, confidence of (leisure) flyers remains weak owing to
the second wave/slow virus contamination.
In light of the company’s guidance, we have built in the following assumptions
for the next two quarters:
3QFY21E loss of ~INR6.9b - ASK of ~15.5b (at 60% YoY) with PLFs ~70%,
4QFY21E loss of ~INR2.1b - ASK of ~20.6b (at 80% YoY) with PLFs ~73%.
As per recent news articles, fare bands have been further extended for three
months, which were to end in Nov’20. We believe that (in line with the
company’s ideology) the permanent enforcement of fare bands could be a huge
dampener on the Aviation industry as a whole, weakening sentiment for the
regulated Aviation market.
Building on all of the aforementioned factors, we continue to believe long-term
demand and stability in the sector remain a key challenge; thus, we remain
cautious on the stock. The stock trades at 24.4x FY22E EPS of INR54.3 and 6.0x
FY22E adj. EV/EBITDAR.
We value the company at 16x (~33% premium to global peers) Sep’21 EPS to
arrive at a target price of INR1,350.
Maintain Neutral.
Our estimates are highly sensitive to: a) ticket yield, b) PLF, and, c) crude price
assumption; material change to any of these would impact our estimates.
Realized >50% targeted liquidity of INR50-60b during 1HFY21
Valuation and view
30 October 2020
2
 Motilal Oswal Financial Services
Indigo
Quarterly performance
Y/E March
Net Sales
YoY Change (%)
EBITDAR
Margins (%)
EBITDA
Margins (%)
Depreciation
Interest
Other Income
PBT
Rate (%)
Reported PAT
EPS
YoY Change (%)
E: MOFSL Estimates
1Q
94,201
44.7
26,522
28.2
25,234
26.8
9,009
4,842
3,670
15,053
20.3
12,005
31.2
4,215.7
(INR Million)
FY21 Var.
2QE vs est
28,453
-4%
-64.9
-5,114
NM
-18.0
-5,840
NM
-20.5
10,966
3%
5,097 10%
3,771 -24%
-18,132
NM
0.0
-18,132
NM
-47.2
NM
70.7
FY20
FY21
2Q
3Q
4Q
1Q
2Q
3Q
81,052 99,317 82,991
7,667 27,410 53,915
31.0
25.5
5.3
-91.9
-66.2
-45.7
911 18,042
-127 -15,443
2,806 7,246
1.1
18.2
-0.2 -201.4
10.2
13.4
-199 16,699 -1,353 -16,200
2,063 5,953
-0.2
16.8
-1.6 -211.3
7.5
11.0
10,287 10,377 10,063 10,964 11,264 11,264
4,235 4,805
4,877
5,097
5,625 5,625
4,347 3,986
3,359
3,768
2,878 3,986
-10,373 5,504 -12,934 -28,494 -11,948 -6,950
-2.7
10.9
32.5
0.0
0.0
0.0
-10,656 4,905 -8,735 -28,494 -11,948 -6,950
-27.7
12.8
-22.7
-74.1
-31.1
-18.1
63.4 157.0 -248.2 -337.4
12.1 -241.7
FY20
FY21E
4Q
75,318 3,57,560 1,64,310
-9.2
25.5
-54.0
14,223
45,348
8,832
18.9
12.7
5.4
12,500
40,382
4,317
16.6
11.3
2.6
12,207
39,736
45,699
5,948
18,759
22,296
3,598
15,362
14,230
-2,057
-2,751 -49,448
0.0
9.8
0.0
-2,057
-2,481 -49,448
-5.4
-6.5
-128.6
-76.5
-259.1 1,892.7
Exhibit 1: IndiGo – Key assumptions
Y/E March
Fleet and capacity
Fleet size (No)
ASK (millions)
YoY (%)
Load Factor
RPK (millions)
YoY (%)
Revenue Calculation
Ticket Revenue (INRm)
Yield (INR/RPK)
Ancillary revenues (inc others)
Total Revenue (INR mn)
Fuel Cost
Exchange rate (INR/USD)
Brent Price (USD/bbl)
ATF Prices (INR/ltr)
YoY (%)
Aircraft fuel expenses (INR m)
FY16
107
42,826
21%
84%
35,968
28%
1,40,626
3.9
20,773
1,61,399
65
47
48
-30%
47,793
FY17
131
54,583
27%
85%
46,288
29%
1,61,971
3.5
23,834
1,85,805
67
49
50
4%
63,415
FY18
159
63,510
16%
87%
55,524
20%
1,99,433
3.6
30,776
2,30,209
64
57
55
10%
77,601
FY19
217
81,016
28%
86%
69,787
26%
2,51,359
3.6
33,609
2,84,968
70
70
68
23%
1,19,428
FY20
262
96,300
19%
86%
82,600
18%
3,14,682
3.8
42,878
3,57,560
72
64
65
-4%
1,26,316
FY21E
283
47,120
-51%
70%
32,984
-60%
1,35,234
4.1
29,075
1,64,310
75
38
38
-42%
35,170
FY22E
285
95,460
103%
75%
71,595
117%
2,77,502
3.9
58,275
3,35,778
76
50
50
31%
93,569
FY23E
347
1,09,813
15%
85%
93,341
30%
3,61,791
3.9
68,740
4,30,531
76
50
55
11%
1,19,082
Source: Company, MOFSL
30 October 2020
3
 Motilal Oswal Financial Services
Indigo
Key exhibits
Exhibit 2: Total ASKs (b) stood at 8.9b…
Exhibit 3: …with YoY decrease at 63% in 2QFY21
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 4: Total RPKs (b) stood at 5.8b…
Exhibit 5: … with YoY decrease at 71.3% in 2QFY21
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 6: RASK stood to INR3.08 (-8% YoY) in 2QFY21…
Exhibit 7: … while CASK increased 10% YoY to INR3.48
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 8: Load factor stood at 65.2%
Exhibit 9: Fuel cost stood at INR0.73 in 2QFY21
Source: Company, MOFSL
Source: Company, MOFSL
30 October 2020
4
 Motilal Oswal Financial Services
Indigo
Financials and Valuation
Standalone - Income Statement
Y/E March
Total Income from Operations
YoY Chg (%)
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT
PBT after EO Exp.
Tax
Tax Rate (%)
Reported PAT
Change (%)
Margin (%)
FY16
1,61,399
15.9
30,055
18.6
5,031
25,024
1,349
4,614
28,290
28,290
8,392
29.7
19,897
52.1
12.3
FY17
1,85,805
15.1
70,654
38.0
4,573
66,082
3,308
7,891
70,665
70,665
4,852
6.9
65,813
230.8
35.4
FY18
2,30,209
23.9
91,955
39.9
4,369
87,587
3,398
9,469
93,657
93,657
8,843
9.4
84,814
28.9
36.8
FY19
2,84,968
23.8
-2,055
-0.7
7,596
-9,651
5,090
13,248
-1,492
-1,492
-3,052
204.5
1,560
-98.2
0.5
FY20
3,57,560
25.5
99,054
27.7
39,736
59,318
18,759
15,362
55,922
55,922
-269
-0.5
56,191
3,502.3
15.7
FY21E
1,64,310
-54.0
4,237
2.6
45,699
-41,462
22,296
14,230
-49,527
-49,527
0
0.0
-49,527
-188.1
-30.1
FY22E
3,35,778
104.4
74,800
22.3
45,823
28,978
20,767
19,673
27,884
27,884
7,018
25.2
20,865
-142.1
6.2
(INR Million)
FY23E
4,30,531
28.2
1,02,535
23.8
45,848
56,687
20,767
22,903
58,823
58,823
14,806
25.2
44,017
111.0
10.2
Standalone - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Deferred Tax Liabilities
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
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
Net Current Assets
Appl. of Funds
E: MOFSL Estimates
FY16
3,604
23,628
27,232
1,468
30,071
58,770
53,251
5,777
47,474
237
9,862
68,614
763
1,571
37,187
29,093
67,417
7,412
58,575
1,197
58,770
FY17
3,615
34,177
37,792
1,618
23,957
63,367
46,432
8,493
37,938
233
37,134
76,792
1,632
1,587
46,325
27,248
88,730
7,746
79,093
-11,938
63,367
FY18
3,844
66,930
70,774
3,695
22,414
96,883
57,906
12,862
45,043
294
63,440
1,02,516
1,832
2,263
65,806
32,614
1,14,410
10,002
1,01,407
-11,894
96,884
FY19
3,844
65,604
69,448
644
21,937
92,029
77,078
20,458
56,620
220
65,167
1,28,110
2,114
3,625
86,064
36,307
1,58,089
14,552
1,39,164
-29,979
92,029
FY20
3,848
54,776
58,624
0
1,59,257
2,17,881
2,27,976
60,194
1,67,782
1,293
94,994
1,56,416
2,861
2,596
1,08,294
42,665
2,02,603
15,655
1,67,465
-46,187
2,17,881
FY21E
3,848
5,249
9,097
0
1,59,257
1,68,354
2,29,010
1,05,893
1,23,117
259
94,994
1,21,463
1,756
1,193
98,909
19,606
1,71,479
9,605
1,61,874
-50,016
1,68,354
FY22E
3,848
23,607
27,455
0
1,59,257
1,86,712
2,29,217
1,51,716
77,502
52
94,994
2,66,299
2,889
2,438
2,20,906
40,066
2,52,134
15,806
2,35,074
14,165
1,86,712
(INR Million)
FY23E
3,848
62,335
66,183
0
1,59,257
2,25,440
2,29,259
1,97,563
31,695
10
94,994
4,30,601
3,640
3,126
3,72,464
51,372
3,31,861
19,913
3,09,303
98,740
2,25,440
30 October 2020
5
 Motilal Oswal Financial Services
Indigo
Financials and Valuation
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout incl. tax (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
Adj. EV/EBITDAR
EV/EBITDA
Dividend Yield (%)
FCF Yield (%)
Return Ratios (%)
RoE
RoCE
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Working Cap. Turnover (Days)
Leverage Ratio (x)
Net Debt / Equity
FY16
51.8
64.8
70.8
16.9
39.3
25.6
20.4
18.7
3.1
12.2
16.7
1.3
5.7
126.6
40.5
2.7
3
4
26
-81
-0.3
FY17
171.2
183.1
98.3
32.0
22.4
7.7
7.2
13.5
2.6
6.9
6.9
2.4
19.9
202.4
112.8
2.9
7
3
34
-114
-0.6
FY18
220.6
232.0
184.1
6.0
3.3
6.0
5.7
7.2
2.0
5.6
5.1
0.5
18.4
156.2
109.7
2.4
7
4
36
-123
-0.6
FY19
4.1
23.8
180.7
5.0
148.1
326.0
55.5
7.3
1.6
16.6
-216.3
0.4
4.0
2.2
-4.0
3.1
3
5
22
-149
-0.9
FY20
146.2
249.5
152.5
0.0
0.0
9.1
5.3
8.7
1.6
5.7
5.6
0.0
-2.8
87.7
48.4
1.6
4
3
23
-158
0.9
FY21E
-128.8
-10.0
23.7
0.0
0.0
-10.3
-132.8
55.9
3.5
68.6
134.3
0.0
-0.3
-146.3
-14.1
1.0
4
3
23
-331
6.6
FY22E
54.3
173.5
71.4
5.4
12.0
24.4
7.6
18.5
1.3
6.0
6.0
0.4
24.7
114.2
20.5
1.8
4
3
23
-225
-2.2
FY23E
114.5
233.8
172.2
11.5
12.0
11.6
5.7
7.7
0.7
3.1
2.9
0.9
30.4
94.0
38.6
1.9
3
10
17
-232
-3.2
Standalone - 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
CF from Investments
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
E: MOFSL Estimates
FY16
28,290
5,031
1,157
-5,761
3,081
31,797
31,157
-2,320
28,837
-2,623
-1,598
-10,241
-825
-13,437
-12,366
17,193
19,994
37,187
FY17
70,665
4,573
-4,583
-2,732
21,102
89,024
88,518
12,829
1,01,347
-27,273
-6,553
-6,114
-3,308
-14,769
-72,826
9,139
37,187
46,325
FY18
93,657
4,369
-6,070
-6,033
15,257
1,01,179
1,01,179
-7,356
93,824
-26,306
-24,193
-1,543
-3,398
-2,772
-57,505
19,481
46,325
65,806
FY19
-1,492
7,596
-8,159
3,007
12,476
13,429
13,429
6,767
20,196
-1,727
18,289
-477
-5,090
-2,310
-11,460
20,258
65,806
86,064
FY20
55,922
39,736
3,396
-8
87,639
1,86,685
1,86,685
-2,01,171
-14,486
-29,827
-2,15,635
1,37,320
-18,759
0
51,180
22,230
86,064
1,08,294
FY21E
-49,527
45,699
8,066
0
-89,026
-84,789
-84,789
83,469
-1,319
0
97,700
0
-22,296
0
-22,296
-9,385
1,08,294
98,909
(INR Million)
FY22E
27,884
45,823
1,094
-7,018
63,638
1,31,420
1,31,420
-5,822
1,25,598
0
13,851
0
-20,767
-2,507
-23,275
1,21,997
98,909
2,20,906
FY23E
58,823
45,848
-2,136
-14,806
36,420
1,24,149
1,24,149
30,562
1,54,711
0
53,465
0
-20,767
-5,290
-26,057
1,51,557
2,20,906
3,72,464
30 October 2020
6
 Motilal Oswal Financial Services
Indigo
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
30 October 2020
7
 Motilal Oswal Financial Services
Indigo
********************************************************************************************************************************
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.
30 October 2020
8