22 November 2020
Update | Sector: Automobiles
Motherson Sumi
BSE SENSEX
43,882
S&P CNX
12,859
CMP: INR140
TP: INR160 (+15%)
Buy
Vision 2025: Shaping up for the next phase of growth…
…led by new tech, markets and segments, industries and M&A
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
MSS IN
3,158
440.7 / 5.8
151 / 49
20/28/-2
1784
38.3
Financials Snapshot (INR b)
2020 2021E
Y/E March
Sales
635.4 592.7
EBITDA
52.0
45.7
Adj. PAT
11.7
5.5
EPS (INR)
3.7
1.7
EPS Gr. (%)
-27.5
-53.3
BV/Sh. (INR)
35.7
37.0
Ratios
Net D:E
0.5
0.5
RoE (%)
10.5
4.8
RoCE (%)
6.4
4.7
Payout (%)
47.2
31.5
Valuations
P/E (x)
37.7
80.7
P/BV (x)
3.9
3.8
Div. Yield (%)
1.1
0.4
FCF Yield (%)
7.2
0.9
Shareholding pattern (%)
As On
Sep-20 Jun-20
Promoter
61.7
61.7
DII
13.6
13.4
FII
16.0
15.6
Others
8.7
9.3
FII Includes depository receipts
Stock Performance (1-year)
Motherson Sumi
Sensex - Rebased
2022E
702.3
74.3
18.7
5.9
242.2
41.0
0.2
15.2
11.5
31.5
Motherson Sumi (MSS) has embarked on its next five-year plan - 'Vision 2025' -
with an ambitious (USD36b/40%) revenue/RoCE target, and additional focus on
diversifying into new industries (25% contribution by FY25). [Click here for
presentations of
Day 1
and
Day 2].
Vision 2025 focuses on expanding into nascent geographies, new technologies in
current products and addressing the broader mobility space (beyond PVs).
While organic growth would be broadly driven by content increase through new
technologies and expansion into new markets and segments, inorganic growth
would play an important part in attaining its strategic objectives in the Auto
business and ramp-up in new industries (Aerospace and Health/Medical
Technologies).
Funds for growth would come from: a) internal accruals as a large part of capex is
behind it, b) debt (not exceeding 2.5x net debt-to-EBITDA), and c) equity issue (if
required).
Operational turnaround at its greenfield plants (USA + Hungary) is sustainable. Plants
are operating near full capacity. Hungary has seen a sharp improvement in margin,
which is near high single-digits. SMP's (ex-greenfield) margin stands at 10%.
Vision 2025, along with ongoing restructuring of the group, will help the company
shape up for the next phase of growth. We believe MSS is the best proxy to a
global automotive recovery, which is supplemented by company-specific drivers
of earnings. Maintain Buy.
23.6
Vision 2025: Adding new engines for future growth keeping an eye on
3.4
RoCE
1.1
Vision 2025 has four pillars viz: a) USD36b revenue (v/s USD10b in FY20)
7.9
Sep-19
61.7
13.5
15.0
9.8
210
130
50
with 40% RoCE driven by organic and inorganic initiatives, b) 3CX10 (no
customer/component/country more than 10% of revenue) as it attained
3CX15 in its last five-year plan, c) 75% of revenue from Autos and 25% from
new divisions, and d) Dividend payout of 40% of consolidated PAT.
Auto business/new industries would contribute USD27b/USD9b to the
revenue target. New industries in focus are: a) Aerospace, b)
Health/Medical Technologies, c) Logistic Services and d) Information
Technology (expand from a captive supplier to external customers). In the
last five years, it has done a lot of ground work and seeded these
businesses.
Inorganic initiatives would play a large part (didn't quantify) in Vision 2025.
Funds for growth would come from: a) internal accruals as a large part of
capex is behind, b) Debt (not exceeding 2.5x net debt-to-EBITDA), and c)
Equity issue (if required).
Vision 2025 targets increase in content to up to 5-6% of a vehicle’s value
from the current max of 3-3.5%.
Jinesh Gandhi - Research analyst
(Jinesh@MotilalOswal.com)
Vipul Agrawal - Research analyst
(Vipul.Agrawal@MotilalOswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Motherson Sumi
Broader framework for attaining Vision 2025
For existing Auto businesses, the broader framework for growth is based on: a)
growth in current product lines, b) integration of new technology content within
the existing product segment, c) adjacent expansion, d) diversification into new
segments and markets, and e) M&As (in select businesses).
It would expand in nascent geographies like US, Japan and South Korea, which it
has so far knowingly stayed away from. The company would also be targeting a
much wider Mobility space from PVs to other Auto segments (including off-
highway vehicles).
For new industries, it laid down its approach to selecting products/segments
from the Aerospace and Health/Medical Technologies, which is based on: a)
aligning with MSS’ strength and capabilities and having synergies, b) scope to
add value, and c) future growth opportunities. While it has already started work
in both these businesses and identified products to address in Phase I, M&As
would play a very important part to scale-up the business as it is targeting its
presence across key markets.
M&As would be key in attaining its USD36b revenue target, though the
management didn’t offer any split between organic and inorganic targets.
Wiring Harness business: Content increase and ramp-up in non-PVs to drive
growth
MSS’ market share in the USD52b global Wiring Harness market is USD3b. Its
share in the USD5.3b Rolling Stock Wiring Harness market is just USD176m.
Global industry is estimated to grow at 6.7%. MSS’s growth would be driven by:
a) content increase (premiumization, EVs/Hybrids and other parts like SMART
junction boxes), b) build up other Auto segments like 2Ws and CVs, c) new
industries (Rolling Stock and Aerospace), and d) ramp-up in overseas market
(including China through JVs).
In Rolling Stock, it plans to grow with existing customers, expand to new
markets, and through M&As.
Vision Systems (SMR): New technologies and markets to drive growth
It plans to grow ahead of the market led by: a) increase in content (feature
increases, vertical integration, etc.), b) new technology (EcoMirror, camera
monitoring systems, etc.), c) new markets (South Africa, Russia, Turkey, Japan
etc.), and d) M&As. EcoMirror are premium lightweight products and have been
already launched in two new energy vehicles.
CMS have significantly high value than premium mirrors. MSS sees bigger
opportunity in cameras replacing external mirrors in Trucks. It has two/one
programs in CVs/PVs. The CMS market is pegged at USD1b by 2030.
New markets that SMR is targeting are: a) South Africa (EUR50m localization
opportunity; it is very close to finalize its first contract), b) Russia (EUR85m
market), c) Turkey (EUR60m market) and Japan (huge market and M&As are the
best way to increase its presence).
22 November 2020
2
 Motilal Oswal Financial Services
Motherson Sumi
Modules and Polymer products (SMP): Ramp-up in the nascent market to
drive growth
The management plans to grow ahead of the market by: a) further ramping-up
in the US (diversifying customer and increase footprint through M&A), b)
expand in China, East Europe, India and Africa, c) ramp-up in HCVs, d) increase
content through new products and technologies, e) transferring knowhow from
premium segment to mid and entry, and f) expand in adjacent areas (White
Goods, Healthcare and Telecom).
Operational turnaround at its greenfield plants (USA + Hungary) is sustainable.
Plants are operating near full capacity. Hungary has seen sharp improvement in
margin, which is near high single-digits. SMPs (ex-greenfield) margin is at 10%.
RoCE improvement at SMP would be driven by: a) increasing asset turns as the
investment cycle is over, b) driving operating efficiencies and vertical integration
(Wiring Harness, Leather Competency etc.), and c) low cost automation
(Industry 4.0, Material Handling, etc.).
Aerospace: Focus on Wiring Harness, composite parts, metal/structural
parts
The areas identified by MSS are Wiring Harnesses, cabin parts, detailed parts
and aero structures. In Phase I (FY20-23), it would focus on Wiring Harness,
composite parts and assembly, machined metal parts and small metallic
assembly.
It recently bagged a 'Make in India' high grade mission critical part for
Chandrayan-II launch. It would be single vendor for flex seals on multi-launch
vehicles.
It is putting up a Wiring Harness facility for Aerospace in Noida, which would be
ready by Apr-21.
It is actively engaging with Airbus and Boeing for a consolidation opportunity
and is evaluating M&As in the US, France, Germany and Canada.
Health/Medical Technologies: Targeted areas offer an USD1t opportunity
by 2025
MSS would focus on two segments in healthcare viz Medical (USD770b by 2025)
and Health Technologies (USD310b by 2025).
It would build the business on three fronts: a) continue to build a portfolio of
own products, b) build a large global medical device platform, and c) grow share
of Medical Technologies in contract manufacturing.
Based on under development projects at MSS, it would globally launch high
volume products over the next 18-24 months.
It is focused on building business in India, North America, EU and Asia. It would
look at M&As to build a large global medical technology platform.
Valuation and view
Vision 2025 lays down a roadmap for the next decade of growth for the
company. While the last decade marked MSS’ presence in the global automotive
supply chain, this decade may see it diversifying beyond Auto by leveraging its
strength and capabilities. Our estimates are yet to factor in Vision 2025,
particularly any material contribution from new industries.
3
22 November 2020
 Motilal Oswal Financial Services
Motherson Sumi
Our fundamental view on MSS remains intact. Stabilization of SMP’s greenfield
plant is critical in driving earnings recovery for MSS, which we estimate to
reflect from 2HFY21. Execution of a strong order book and limited capex at
SMPBV and the India business augurs well for MSS. Also, the company will
benefit from content increase in BS6 as well a good PV recovery.
Vision 2025 along with the ongoing restructuring of the group will shape the
next phase of growth for the company. We believe MSS is the best proxy to a
global automotive recovery, which is supplemented by company-specific
earnings drivers.
The stock trades at 23.6x FY22E and 18.5x FY23E consolidated EPS. We maintain
Buy
with a TP of ~INR160 (Mar’23E SoTP based).
Exhibit 1:
SoTP-based target price
SoTP: Fair value
INR share
Equity value
MSS (standalone)
PKC
SMRPBV
Target price (INR/share)
Upside (%)
Mar-23E TP
Upside (%)
Target P/E (x)
30
15
15
FY21E
39
7
5
51
-63.5
FY22E
71
18
38
126
-9.4
FY23E
87
24
49
160
14.8
160
14.8
Source: Company, MOFSL
Exhibit 2: MSS’ roadmap for Vision 2025 targets revenues of USD36b from USD10b in FY20
Source: Company, MOFSL
Exhibit 3: Aerospace: MSS’ focus areas align with its strength and capabilities
Source: Company, MOFSL
22 November 2020
4
 Motilal Oswal Financial Services
Motherson Sumi
Exhibit 4: Aerospace: MSS’ leveraging its strength and capabilities
Source: Company, MOFSL
Exhibit 5: Aerospace: Targeted approach with Phase I focusing on less complex products
Source: Company, MOFSL
Exhibit 6: Health/Medical Technology: MSS’ focus areas offer an USD1t opportunity by 2025
Source: Company, MOFSL
22 November 2020
5
 Motilal Oswal Financial Services
Motherson Sumi
Exhibit 7: MSS would focus on medical devices up to Class 2
Source: Company, MOFSL
Exhibit 8: Medical Technology offers an USD870b opportunity (including contract manufacturing)
Source: Company, MOFSL
22 November 2020
6
 Motilal Oswal Financial Services
Motherson Sumi
Stories in charts
Exhibit 1: SMRPBV order book trend (EUR b)
Orderbook
17.2
12.9
6.8
3.4
Start of Prodn
18.2
13.6
10.1
4.6
2.8
0.4
FY17
FY18
FY19
FY20
1HFY21
Source: Company, MOFSL
3.4
2.4
2.7
13.1
13.6
6.8
0.0
349
372
424
563
635
13.9
Book to bill (x)
Exhibit 2: Revenue and growth trend
Revenues (INR b)
32.8
12.8
635
18.5
593
-6.7
Growth (%)
2.2
702
Source: Company, MOFSL
Exhibit 3: Consolidated EBITDA and margin trend
EBITDA (INR b)
EBITDA Margin (%)
Exhibit 4: Consolidated PAT growth trend
PAT (INR b)
Growth (%)
242
9.0
9.6
9.8
10.6
9.1
8.4
53.5
8.2
52.0
7.7
45.7
74.3
9
FY15
Source: Company, MOFSL
13
FY16
16
FY17
17
FY18
16
FY19
12
FY20
13
49
25
6
-6
-27
30.2
35.5
41.7
51.2
-53
5
19
FY21E FY22E
Source: Company, MOFSL
Exhibit 5: FCF generation to improve
CFO
Capex
FCF
46
66
Exhibit 6: Trend in return profile
RoCE (%)
31.8
25.9
25.3
18.4
19.4
14.7
12.2
15.9
9.8
4.9
7.3
4.75.3
15.2
11.5
ROE (%)
37
18
42
20
1
14
45
29
-1
-28
-30
-27
18
60
38
26
7
-22
-19
17.0
-18
-19
-20
Source: Company, MOFSL
Source: Company, MOFSL
22 November 2020
7
 Motilal Oswal Financial Services
Motherson Sumi
Financials and valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
Raw Materials
Employees Cost
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Intrest Charges
Other Income
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill
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
Misc Expenditure
Appl. of Funds
E: MOFSL estimates
FY17
4,23,755
13.9
2,57,507
80,909
43,671
3,82,087
90.2
41,668
9.8
10,590
31,078
3,749
2,642
28,997
9,103
31.4
4,350
15,543
16,058
24.3
3.8
FY18
5,62,933
32.8
3,43,121
1,10,678
57,908
5,11,707
90.9
51,226
9.1
15,752
35,474
4,108
1,701
31,290
10,072
32.2
5,249
15,970
17,024
6.0
3.0
FY19
6,35,229
12.8
3,67,383
1,41,694
72,668
5,81,745
91.6
53,484
8.4
20,582
32,902
4,232
2,202
30,872
11,022
35.7
3,719
16,132
16,132
-5.2
2.5
FY20
6,35,369
0.0
3,62,715
1,50,769
69,872
5,83,355
91.8
52,014
8.2
27,780
24,234
5,986
2,307
20,554
8,184
39.8
669
11,700
11,700
-27.5
1.8
FY21E
5,92,697
-6.7
2,86,850
1,73,384
86,789
5,47,024
92.3
45,673
7.7
31,143
14,530
6,006
2,450
10,974
3,402
31.0
1,553
6,018
5,464
-53.3
0.9
FY22E
7,02,287
18.5
3,26,083
1,99,392
1,02,507
6,27,982
89.4
74,305
10.6
32,945
41,360
5,941
2,550
37,970
11,771
31.0
7,503
18,696
18,696
242.2
2.7
(INR m)
FY23E
7,69,678
9.6
3,34,279
2,29,300
1,19,011
6,82,590
88.7
87,088
11.3
34,792
52,295
6,162
2,550
48,683
15,092
31.0
9,709
23,882
23,882
27.7
3.1
(INR m)
FY23E
3,158
1,14,703
1,45,919
58,417
97,428
-5,030
2,96,735
3,03,206
1,98,381
1,04,825
24,060
8,154
1,614
2,47,345
48,500
69,587
1,13,864
15,393
2,01,550
1,44,836
53,522
3,192
45,795
1,12,287
2,96,735
FY17
1,404
53,265
82,727
22,322
1,01,418
-5,024
2,01,443
1,35,237
33,590
1,01,647
19,379
19,348
684
1,37,061
30,716
46,552
48,866
10,927
1,17,230
73,003
42,600
1,628
19,831
40,554
2,01,443
FY18
2,105
63,015
93,178
29,600
94,770
-6,266
2,11,282
1,74,332
51,138
1,23,194
22,646
25,849
2,467
1,33,905
40,132
56,236
27,816
9,722
1,57,430
90,640
65,168
1,622
-23,525
60,652
2,11,282
FY19
3,158
78,412
1,09,627
34,797
1,09,428
-6,123
2,47,730
1,91,445
71,720
1,19,725
22,118
10,463
2,389
1,57,377
46,635
61,663
35,469
13,610
1,79,449
1,06,613
70,371
2,465
-22,072
1,15,107
2,47,730
FY20
3,158
81,394
1,12,609
35,650
1,06,428
-5,030
2,49,659
2,39,371
99,500
1,39,870
24,060
8,154
1,614
1,63,943
51,566
51,784
48,789
11,804
2,00,270
1,03,091
94,374
2,805
-36,326
1,12,287
2,49,659
FY21E
3,158
85,519
1,16,735
38,204
1,03,428
-5,030
2,53,337
2,58,385
1,30,644
1,27,741
24,060
8,154
1,614
1,48,780
37,348
53,586
45,992
11,854
1,69,299
1,15,462
51,379
2,458
-20,519
1,12,287
2,53,337
FY22E
3,158
98,334
1,29,550
47,207
1,00,428
-5,030
2,72,156
2,78,240
1,63,588
1,14,651
24,060
8,154
1,614
2,00,659
44,254
63,494
78,865
14,045
1,89,269
1,29,317
57,039
2,912
11,390
1,12,287
2,72,156
22 November 2020
8
 Motilal Oswal Financial Services
Motherson Sumi
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share (Eco. Int. basis)
Return Ratios (%)
RoE
RoCE (post-tax)
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY17
5.1
26.2
0.9
23.6
27.4
5.3
0.9
8.0
0.6
5.5
25.3
14.7
20.0
3.1
2.1
26
40
63
1.2
8.3
0.6
FY18
5.4
29.5
1.5
34.6
25.9
4.7
0.9
9.0
1.1
2.8
19.4
12.2
16.7
3.2
2.7
26
36
59
0.9
8.6
0.7
FY19
5.1
34.7
1.5
34.2
27.3
4.0
1.1
11.9
1.1
4.8
15.9
9.8
11.9
3.3
2.6
27
35
61
0.9
7.8
0.7
FY20
3.7
35.7
1.5
47.2
37.7
3.9
1.1
12.0
1.1
10.1
10.5
6.4
7.5
2.7
2.5
30
30
59
0.8
4.0
0.5
FY21E
1.7
37.0
0.5
31.5
80.7
3.8
1.2
14.8
0.4
1.2
4.8
4.7
5.2
2.3
2.3
23
33
71
0.9
2.4
0.5
FY22E
5.9
41.0
1.6
31.5
23.6
3.4
1.0
8.7
1.1
11.0
15.2
11.5
15.0
2.5
2.6
23
33
67
1.1
7.0
0.2
FY23E
7.6
46.2
2.0
31.5
18.5
3.0
0.8
6.9
1.5
11.8
17.3
13.3
20.2
2.5
2.6
23
33
69
1.2
8.5
-0.1
(INR m)
FY23E
48,683
34,792
6,162
-15,092
593
75,139
1,500
76,639
-24,967
51,673
0
0
-24,967
0
-3,000
-6,162
-7,512
0
-16,674
34,998
78,865
1,13,864
FY17
31,801
10,591
3,324
-8,433
4,813
42,096
-4,099
37,997
-27,789
10,208
-39,675
203
-67,261
25,277
34,092
-3,471
-826
104
55,176
25,912
17,717
43,629
FY18
34,448
15,752
3,777
-10,048
-14,820
29,109
3,531
32,640
-30,308
2,332
-2,876
1,243
-31,941
0
-9,471
-3,944
-6,332
-2,467
-22,214
-21,515
48,866
27,351
FY19
32,003
20,582
3,878
-10,498
-958
45,007
-1,883
43,124
-26,853
16,271
-7,230
978
-33,105
0
8,147
-4,159
-6,395
81
-2,326
7,693
27,816
35,509
FY20
21,129
27,780
5,626
-10,776
16,202
59,959
3,561
63,521
-21,943
41,578
-1,210
753
-22,399
0
-6,214
-5,667
-12,794
-3,354
-28,029
13,092
35,469
48,561
FY21E
10,974
31,143
6,006
-3,402
-18,605
26,116
1,000
27,116
-19,014
8,102
0
0
-19,014
0
-3,000
-6,006
-1,893
0
-10,899
-2,797
48,789
45,992
FY22E
37,970
32,945
5,941
-11,771
965
66,050
1,500
67,550
-19,855
47,695
0
0
-19,855
0
-3,000
-5,941
-5,881
0
-14,822
32,873
45,992
78,865
22 November 2020
9
 Motilal Oswal Financial Services
Motherson Sumi
NOTES
22 November 2020
10
 Motilal Oswal Financial Services
Motherson Sumi
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”,
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Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
22 November 2020
11
 Motilal Oswal Financial Services
Motherson Sumi
********************************************************************************************************************************
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.
22 November 2020
12