3 November 2020
2QFY21 Results Update | Sector: Utilities
JSW Energy
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)
JSW IN
1,640
96.3 / 1.3
80 / 35
1/12/-17
106
CMP: INR59
TP: INR73 (+25%)
Buy
Performance impacted by lower merchant sales
Cash flow generation healthy; Debt reduction continues
JSW Energy’s (JSWE) 2QFY21 results reflect the impact of lower merchant
sales volumes on the back of drop in power demand and merchant prices.
However, this was partly offset by operational efficiency measures. At
consolidated level, EBITDA was down 1% YoY to INR9.2b.
Net debt (excl. acceptances) continued reducing (by ~INR8.2b during the
quarter). Interest cost has also decreased 24% YoY. Further, FCF generation
is expected to be robust as ~80% of JSWE’s capacity is under long-term
PPAs.
Maintain Buy with TP of INR73/share.
S/A performance impacted by lower merchant sales
2QFY21 EBITDA was down 1% YoY to INR9.2b (v/s est. INR8.9b) on lower
merchant volumes, partly offset by operational efficiencies. Short-term
sales volumes were down 85% YoY to 110MUs. Interest cost fell 14%/24%
QoQ/YoY to INR2.1b (v/s est. INR2.4b) due to debt reduction and lower
borrowing costs. Reported PAT was flat YoY at INR3.5b (v/s est. INR3.4b).
Hydro generation was flat YoY while EBITDA was up 4% YoY at INR5.1b.
EBITDA at Barmer was down 9% YoY at INR2.5b.
Net debt (excl. acceptances) reduced to INR76.7b (v/s INR89.5b at end-
FY20). Receivables are elevated at INR21.8b but are 3% lower on YoY basis.
Management commentary highlights – Receivables have decreased
For the SECI 810 MW project, the company expects the PSA to be signed by
end-FY21. The project would be completed in 24 months post the PSA
signing and would be set up in Tamil Nadu (connectivity approvals have
been received). Solar capacity will be ~15-20% of the capacity mix.
The company plans to achieve ~10GW capacity over the next five years with
1-1.5GW capacity addition every year. Subsequently, JSWE expects the
share of renewables to increase from 35% to 65-70% in its capacity mix.
Healthy cash flow generation, with large tied-up capacity; Maintain Buy
JSWE has taken its first big step toward Renewables with the LOA for SECI’s
810MW blended project. However, with PSA yet to be signed, we do not
bake in the same in our numbers. We expect equity IRRs to be in the range
of 13-14% for the project, leading to possible marginal increase in our
valuation (~INR2-3/share), if successful.
~80% of JSWE’s 4.4GW capacity is under long-term PPAs, which generate
strong free cash flows. These tied-up PPAs contribute ~95% to the
company’s EBITDA. Further, interest cost savings and operational
efficiencies have helped to partly offset lower merchant volumes. We raise
our FY21/FY22E estimates by 12%/7% on account of these measures.
Maintain Buy and raise our TP to INR73/share
(earlier INR64/share),
broadly led by higher value of its stake in JSW Steel.
Financials & Valuations (INR b)
Y/E MARCH
2020 2021E 2022E
Sales
EBITDA
Adj. PAT
EBITDA Margin (%)
Cons. Adj. EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
Ratios
Net D:E
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA(x)
Div. Yield (%)
FCF Yield (%)
11.5
0.8
6.6
1.7
20.4
12.5
0.8
6.5
4.3
26.1
10.4
0.8
5.7
4.3
27.0
0.8
7.1
7.8
19.7
0.7
6.5
7.2
53.3
0.5
7.5
7.9
44.3
82.7
29.6
8.3
35.7
5.1
20.0
71.0
76.1
27.6
7.7
36.3
4.7
-7.9
73.1
84.7
28.7
9.2
33.8
5.6
20.3
76.2
Shareholding pattern (%)
As On
Sep-20 Jun-20
Promoter
74.9
74.9
DII
8.3
9.4
FII
5.9
6.8
Others
11.0
9.0
FII Includes depository receipts
Sep-19
74.9
9.0
6.7
9.5
;
Aniket Mittal – Research Analyst
(Aniket.Mittal@MotilalOswal.com)
13 February 2020
1
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.
 Motilal Oswal Financial Services
JSW Energy
Quarterly performance (consolidated) – INR m
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 (%)
MI and Associates
Reported PAT
Adj PAT
YoY Change (%)
1Q
24,122
2.2
16,029
8,093
33.5
2,913
2,698
518
3,000
0
3,000
883
29.4
-327
2,444
2,444
6.6
FY20
2Q
3Q
4Q
21,186 19,486 17,934
-12.8
-19.5
-6.8
11,838 13,106 12,186
9,348 6,380 5,748
44.1
32.7
32.1
2,943 2,932 2,893
2,722 2,611 2,480
1,133
676
542
4,816 1,513
917
0 -2,656
0
4,816 4,170
917
1,338
125
26
27.8
3.0
2.8
-51
103
-193
3,530 3,941 1,084
3,530 1,285 1,084
12
-12.1 2,702
1Q
18,052
-25.2
10,596
7,455
41.3
2,895
2,404
816
2,973
0
2,973
787
26.5
53
2,132
2,132
-13
FY21
2Q
3QE
4QE
19,386 18,833 19,800
-8.5
-3.3
10.4
10,148 12,791 14,894
9,238 6,042 4,905
47.7
32.1
24.8
2,916 2,950 2,992
2,072 2,157 2,052
610
624
598
4,860 1,559
460
0
0
0
4,860 1,559
460
1,364
374
-161
28.1
24.0
-35
-25
55
-283
3,521 1,130
904
3,521 1,130
904
0
-12.1
-17
FY20
82,727
53,159
29,569
35.7
11,681
10,511
2,870
10,247
-2,656
12,904
2,372
18.4
-468
10,999
8,343
20.0
FY21E
76,070
48,429
27,641
36.3
11,753
8,685
2,648
9,851
0
9,851
2,364
24.0
-200
7,687
7,687
-7.9
FY20
2QE
19,455
-8.2
10,510
8,946
46.0
2,961
2,362
836
4,459
0
4,459
1,115
25.0
-24
3,368
3,368
-5
vs Est
(%)
0
-3
3
-2
-12
-27
9
9
5
5
Source: MOFSL, Company
Exhibit 1: Key performance parameters – Generation and PLF
1Q
2,032
85.0
960
55.0
1,651
86.0
1,443
50.7
6,086
FY19
2Q
3Q
1,559 1,969
64.0
83.7
905 1,002
52.0
57.0
1,531 1,457
85.0
79.5
2,675
689
94.0
24.2
6,670 5,117
4Q
1,793
80.0
649
37.0
1,377
86.0
397
14.0
4,216
1Q
1,954
81.7
662
38.2
1,379
80.8
1,868
66.3
5,867
FY20
2Q
3Q
1,781 1,753
73.7
80.8
701
802
40.1
45.9
1,281 1,271
60.0
82.3
2,926
730
102.7
25.6
6,701 4,556
4Q
1,705
79.0
593
34.0
1,346
83.0
429
15.1
4,073
FY21
YoY QoQ
1Q
2Q
%
%
1,385 1,434
-19.5
3.5
73.0
59.0
405
559
-20.3 38.0
23.0
32.0
1,492 1,719
34.2 15.2
84.0
80.0
1,632 2,913
-0.4 78.5
57.3 102.0
4,914 6,625
-1.1 34.8
Source: MOFSL, Company
Ratnagiri
Deemed PLF
Vijaynagar
Deemed PLF
Barmer
Deemed PLF
Hydro
Deemed PLF
Total
MU
%
MU
%
MU
%
MU
%
Conference call takeaways
PSA for SECI’s 810MW hybrid project would be signed by end-FY21 and the
project should be completed after 24 months. The project will be set up in Tamil
Nadu and the company has received connectivity approvals. Solar capacity will
be ~15-20% of the capacity mix. PLFs for Solar would be 26-27%, while wind
would be 33-35%. The company expects to get near normative (mid- teens)
returns on the same.
The company plans to achieve ~10GW capacity over the next five years with 1-
1.5GW capacity addition every year. Subsequently, JSWE expects the share of
Renewables to increase from 35% to 65-70% in its capacity mix.
Spot merchant market is currently benign and tariffs are not viable. The
company does not see trend improvement in merchant prices in FY21.
Ind Barath (700MW) continues to see delays in approval process due to creditor
litigation.
Power supplied to group captive consumers has moved to a job works model,
leading to lower revenue as well as fuel costs.
PPA for Kutehr (240MW) would be signed in FY21.
JSW Steel's Dolvi would be completed by FY21; the PPA would also be signed
then.
2
3 November 2020
 Motilal Oswal Financial Services
JSW Energy
The company is identifying locations to set up solar parks or wind turbines. This
is because it is handy while bidding for SECI and evaluating JSW Group captive
opportunities. JSW Group will require 1-1.2GW of renewable capacity under
RPO in the future.
Exhibit 2: JSWE's portfolio of assets
S.N. Asset
1
2
3
4
5
Vijaynagar
Ratnagiri
RajWest
Baspa-II
K. Wangtoo
Location
State
Region
K'taka
SR
Maha.
WR
Raj.
NR
HP
NR
HP
NR
Fuel
Imp. coal
Imp. coal
Lignite
Hydro
Hydro
Capacity
(MW)
860
1,200
1,080
300
1,000
4,440
LT. PPA (MW)
free PPA
Total
316
316
873
873
1,080 1,080
36
264
300
120
880
1,000
156 3,413 3,569
Open
(MW)
544
328
FY18
53.3
64.0
72.5
50.9
52.2
56.1
PLF (%)
FY19
FY20
50.5
39.7
76.3
74.9
70.8
62.1
50.0
60.0
52.0
60.2
56.6
54.5
FY21E
38.0
72.0
60.0
50.0
50.0
50.4
872
Source: MOFSL, Company
Valuation and view
JSWE has taken its first big step toward renewables with the LOA for SECI’s
810MW blended project. However, with PSA yet to be signed, we are not baking
in the same in our numbers. We expect equity IRRs to range between 13-14%
for the project, leading to possible marginal increase in our valuations (~INR2-
3/share), if successful.
We estimate 8% decline in PAT for FY21, building in lower merchant
volumes/realizations. However, strong FCF generation would continue, aided by
tied-up capacities. ~80% of JSWE’s 4.4GW capacity is under long-term PPAs,
which generate strong free cash flows. Furthermore, these tied-up PPAs
contribute ~95% to the company’s EBITDA. Maintain Buy, with TP of
INR73/share.
Exhibit 3: SOTP Valuation
NPV of PPAs
Merchant capacity
Jaigarh Power Transco
JSW Steel
Total value
Less: Net Debt
Add: Advance to JSPL
Equity value
No. of shares (mn)
Value per share (INR/sh)
MW
3,569
872
FY20
157,983
30,503
2,853
17,454
208,791
98,083
2,610
113,318
1,640
FY21E
151,345
30,503
2,853
17,454
202,153
83,126
2,610
119,027
1,640
73
Source: MOFSL, Company
3 November 2020
3
 Motilal Oswal Financial Services
JSW Energy
Financials and Valuations
Income statement
Y/E March
Net Sales
Change (%)
EBITDA
% of Net Sales
Depn. & Amortization
EBIT
Net Interest
Other income
PBT after EO
Tax
Rate (%)
Reported PAT
Minority and Associates
Adjusted PAT
Change (%)
2016
98,245
4.7
40,261
41.0
8,543
31,719
14,981
2,351
20,589
5,563
27.0
15,026
553
12,974
-6.2
2017
82,634
-15.9
33,244
40.2
9,692
23,552
16,848
2,170
8,875
2,690
30.3
6,185
-106
6,290
-51.5
2018
80,490
-2.6
27,625
34.3
9,661
17,965
14,559
4,650
3,876
2,532
65.3
1,344
564
4,959
-21.2
2019
91,376
13.5
28,531
31.2
11,637
16,894
11,924
3,680
8,650
2,124
24.6
6,526
-426
6,951
40.2
2020
82,727
-9.5
29,569
35.7
11,681
17,888
10,511
2,870
12,904
2,372
18.4
10,531
-468
8,343
20.0
2021E
76,070
-8.0
27,641
36.3
11,753
15,888
8,685
2,648
9,851
2,364
24.0
7,487
-200
7,687
-7.9
2022E
84,739
11.4
28,673
33.8
11,825
16,848
7,942
2,996
11,903
2,857
24.0
9,046
-200
9,246
20.3
(INR m)
2023E
91,965
8.5
30,045
32.7
11,905
18,141
6,434
3,078
14,785
3,549
24.0
11,237
-200
11,437
23.7
Balance sheet
Share Capital
Reserves
Net Worth
Total Loans
Deferred Tax Liability
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventories
Account Receivables
Cash and Bank Balance
Others
Curr. Liability & Prov.
Account Payables
Provisions & Others
Net Curr. Assets
Appl. of Funds
2016
16,268
80,773
97,041
166,607
4,341
268,002
204,963
8,443
196,520
3,206
9,369
69,834
6,358
29,063
4,327
30,086
17,386
7,330
10,057
52,448
268,001
2017
16,280
87,405
103,685
158,803
5,801
268,312
206,625
18,167
188,457
5,269
13,599
72,115
5,967
21,828
10,032
34,288
17,577
5,877
11,700
54,538
268,312
2018
16,401
94,697
111,097
136,452
4,280
251,789
210,352
27,977
182,376
2,935
20,782
54,718
5,355
11,512
6,479
31,372
15,420
5,652
9,768
39,298
251,789
2019
16,409
101,814
118,222
119,225
4,561
241,888
211,303
39,456
171,847
4,000
21,083
55,933
4,547
14,278
5,458
31,650
17,373
4,719
12,654
38,560
241,888
2020
16,419
100,037
116,456
107,531
3,705
227,453
211,717
50,988
160,729
3,913
10,990
69,088
6,396
21,032
9,448
32,213
23,665
6,903
16,762
45,423
227,453
2021E
16,419
103,524
119,943
97,531
4,296
221,431
213,517
62,740
150,777
3,613
10,990
72,668
6,252
19,799
14,404
32,213
23,015
6,252
16,762
49,654
221,431
2022E
16,419
108,570
124,989
81,531
5,010
211,091
215,317
74,565
140,752
3,613
10,990
71,905
5,804
18,573
15,315
32,213
22,566
5,804
16,762
49,338
211,091
(INR m)
2023E
16,419
115,807
132,226
63,531
5,897
201,116
217,318
86,469
130,849
3,612
10,990
71,068
5,795
15,117
17,943
32,213
21,802
5,039
16,762
49,267
201,116
3 November 2020
4
 Motilal Oswal Financial Services
JSW Energy
Financials and Valuations
Ratios
2016
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/EBITDA
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE (post-tax)
RoIC (post-tax)
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Debtor (Days)
Inventory (Days)
Leverage Ratio (x)
Net Debt/EBITDA
Debt/Equity
7.9
13.1
59.2
2.0
25.3
8.8
5.3
1.2
6.9
2.9
15.1
12.6
11.5
0.5
0.4
108
24
4.0
1.7
2017
3.8
9.7
63.2
2.0
52.1
15.3
6.0
0.9
7.4
3.4
6.3
8.6
6.9
0.4
0.3
96
26
4.5
1.4
2018
3.0
8.9
67.7
2.0
66.1
19.4
6.6
0.9
8.2
3.4
4.6
7.7
2.8
0.4
0.3
52
24
4.7
1.2
2019
4.2
11.3
72.1
1.0
23.6
13.8
5.2
0.8
7.4
1.7
6.1
7.5
6.1
0.5
0.4
57
18
4.0
1.0
2020
5.1
12.2
71.0
1.0
19.7
11.5
4.8
0.8
6.6
1.7
7.1
7.8
7.3
0.5
0.4
93
28
3.3
0.8
2021E
4.7
11.9
73.1
2.5
53.3
12.5
4.9
0.8
6.5
4.3
6.5
7.2
6.3
0.5
0.3
95
30
3.0
0.7
2022E
5.6
12.8
76.2
2.5
44.3
10.4
4.6
0.8
5.7
4.3
7.5
7.9
7.1
0.6
0.4
80
25
2.3
0.5
2023E
7.0
14.2
80.6
2.5
35.8
8.4
4.1
0.7
4.7
4.3
8.9
8.6
8.2
0.7
0.5
60
23
1.5
0.3
Cash flow statement
EBITDA
FX gain/loss
WC
Others
Direct taxes (net)
CF from Op. Activity
Capex
FCFF
Interest income
Investments in subs/assoc.
Others
CF from Inv. Activity
Share capital
Borrowings
Finance cost
Dividend
Others
CF from Fin. Activity
(Inc)/Dec in Cash
Opening balance
Closing balance
2016
40,261
0
-4,902
3,006
-2,989
35,376
-349
35,027
883
-35,206
2,472
-32,201
0
2,768
-14,891
-4,102
0
-16,224
-13,049
17,376
4,327
2017
33,244
0
6,929
740
-2,387
38,526
-3,715
34,811
810
0
-3,966
-6,871
62
-5,289
-16,796
-3,927
0
-25,949
5,706
4,327
10,033
2018
27,625
0
11,796
1,472
-1,556
39,338
-1,208
38,131
2,701
0
-4,709
-3,216
733
-24,906
-14,318
-1,185
0
-39,676
-3,553
10,032
6,479
2019
28,531
-9
-3,266
1,395
-2,007
24,644
-2,335
22,310
2,338
0
-494
-491
51
-13,503
-11,453
-43
0
-24,948
-794
6,479
5,685
2020
29,569
0
-7,743
746
-1,751
20,820
-1,210
19,611
2,101
0
2,122
3,013
54
-7,070
-10,621
-1,979
0
-19,616
4,217
5,458
9,676
2021E
27,641
0
726
0
-1,773
26,594
-1,500
25,094
0
0
2,648
1,148
0
-10,000
-8,685
-4,100
0
-22,785
4,956
9,448
14,404
2022E
28,673
0
1,226
0
-2,142
27,756
-1,800
25,956
0
0
2,996
1,196
0
-16,000
-7,942
-4,100
0
-28,042
911
14,404
15,315
(INR m)
2023E
30,045
0
2,700
0
-2,661
30,084
-2,000
28,084
0
0
3,078
1,078
0
-18,000
-6,434
-4,100
0
-28,534
2,628
15,315
17,943
3 November 2020
5
 Motilal Oswal Financial Services
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NOTES
3 November 2020
6
 Motilal Oswal Financial Services
JSW Energy
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
3 November 2020
7
 Motilal Oswal Financial Services
JSW Energy
********************************************************************************************************************************
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.
3 November 2020
8