2 December 2020
C
orner
O
ffice
the
Interaction with the CEO
Preparing for a changing technological landscape
Loans to Group cos for working capital to improve treasury yield for BOS
We hosted an interaction with the senior management of Bosch Ltd (BOS) – Mr Soumitra
Bhattacharya (MD, Bosch Ltd & Regional President, Bosch Group India) and Mr Srini
Srinivasan (CFO & Executive Director, Bosch Ltd) – for an update on the business, to get an
insight into BOS’ level of preparedness for the technological disruption, and to discuss the
recent proposal of giving loans to group companies.
[Click here for the presentation]
Here are
the key highlights:
Bosch
Demand recovery better than originally estimated:
The
outlook has improved from
initial expectations as recovery has been better. After lowering its BS6 order book
size to ~INR185b in 1QFY21, from INR245b in 4QFY20 (pre-COVID), BOS expects this
number to have improved from 1Q levels.
Content increase to fully reflect in FY22:
FY22 would mark the first full year since
Mr Bhattacharya has been
the BS6 implementation, particularly for segments such as CV. Content per vehicle
associated with the Bosch
Group for more than 24 years.
in FY22 would increase in terms of value, with increasing volumes as well as
A Chartered Accountant by
normalization of the mix (CV volumes recovering).
Transformation underway:
BOS embarked on a restructuring exercise in 1QFY20 in
profession, over the years, he
has handled varied roles across
the wake of a change in the technological landscape. The management indicated
the group in India and
that the ongoing restructuring would be completed in 3QFY21, making Bosch a
overseas. He was CFO of Bosch
future-ready and fit company. The payback period for this restructuring cost is 5–6
India from 2011 till 2018 and in
years. Additionally, the company has undertaken cost-cutting initiatives on the
2016, took over the CEO role as
premise of zero-based thinking. This is part of its Lakshya 2.0 initiative.
well. Prior to Bosch, he has
EVs – BOS to supply all EV components:
Electrification would begin with 2W/3W;
served at the TATA Group – he
BOS also has the relevant solutions for e-2W (already supplying to Bajaj Chetak and
is a founding member of the
Tanishq brand for the Titan
TVS iQube) and e-3W. The entire gamut of electrification solutions are part of the
listed entity, although this may involve sourcing some components from the group
Company Ltd. He has also
worked at INDAL – the core
companies. It expects electrification (incl. hybrid) levels in India of up to 20% by
Aluminum business of the
2030. Furthermore, it is focused on electrifying the ecosystem through a)
ALCAN Group – and is also a
developing competency in battery manufacturing (not cells), b) its partnership with
founding member of its
Sun Mobility, which would be managed by the listed entity (although stake is taken
Electronics business.
by the parent), and c) exploring business models such as EaaS.
Loans to group companies:
It seeks shareholder approval for the resolution to give loans to its group
companies for their working capital requirements for tenure of one year; the aggregate amount would be
~INR15b (of ~INR65b cash by Mar’21). This resolution would be valid for five years. The loans would be backed
by an unconditional and irrevocable guarantee from the parent. Pricing would be at arms’ length – at or higher
than the quote from two banks – and result in higher yield for BOS than treasury investments. These group
companies are suppliers for Bosch Ltd in several areas.
Valuation and view:
The BS6 transition has led to further market share loss in CV as well as consistent decline in
stronghold PV diesel. Although, the 2W segment opportunity has opened up for BOS (one of the 3–4 players in
2W EFI). Valuations have corrected in line with muted earnings in the last four years and dilution in competitive
positioning. We expect BOS to outperform underlying industry volumes, barring the substantial divergence in
segmental trends, driven by an increase in content under BS6 as well as additional revenues from 2W EFI. The
stock trades at ~30.9x/26.7x FY22/FY23E EPS. We believe the stock price largely reflects all of the negatives, but
a re-rating catalyst may emerge within 2–3 quarters. We maintain Neutral, with TP of ~INR13,500 (~28x Dec’22E
EPS at 20% discount to 10-year LPA of 35x).
Mr Soumitra
Bhattacharya,
MD, Bosch Limited &
Regional President,
Bosch Group in India
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
C
orner
O
ffice
Exhibit 1:
P/E and P/B band
58.0
46.0
34.0
22.0
10.0
P/E (x)
Min (x)
Avg (x)
+1SD
the
54.2
45.8
36.0
26.3
Max (x)
-1SD
P/B (x)
10.0
8.0
6.0
4.0
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
8.7
33.0
6.9
5.5
4.1
2.9
3.7
17.1
2.0
Source: MOFSL
Source: MOFSL
Bosch | Key operating indicators
Exhibit 2:
Trend in sales
Net Sales (INR b)
10.4
0.3
7.6
12.0
3.4
-6.1
Growth (%)
15.5
Exhibit 3:
Segmental mix
Fuel Injection Equipment
Starters & Generators
Others
15
8
12
26
39
FY21E FY22E
FY15
(15m)
17
8
3
26
46
FY16
17
8
-
27
48
FY17
17
8
-
28
47
FY18
16
9
-
27
47
FY19
Injectors & Nozzles
Power tools
20
11
-
23
46
FY20
21
-
11
16
52
20
-
10
17
52
-18.6
FY15
(15m)
FY16
FY17
FY18
FY19
FY20
FY21E FY22E
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 4:
Gross margin v/s EBITDA margins
EBITDA Margins (%)
19.4
49.1
17.9
16.4
48.8
46.6
18.8
46.1
44.8
Gross Margins (%)
17.8
15.1
10.9
46.1
42.6
CY13 FY15 FY16
(15m)
FY17
FY18
FY19
44.0
14.2
Exhibit 5:
Trend in dividend payout
Dividend Payout (%)
63.7
14.0
45.4
35.8
24.8
24.0 21.0
26.8
23.4
25.0 25.0
FY20 FY21E FY22E
CY13 FY15 FY16 FY17 FY18 FY19 FY20 FY21E FY22E
(15m)
Source: Company, MOFSL
Source: Company, MOFSL
2 December 2020
2
 Motilal Oswal Financial Services
C
orner
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Exhibit 6:
FCF and net cash
CFO (INR b)
Capex (INR b)
FCF (INR b)
61
9.0
7.9
4.0
31.5
(7.5)
FY17
12.4
0.1
(2.4)
FY18
(2.7)
FY19
(5.6)
9.1
9.6
1,438
FY15
(15m)
1,945
FY16
1,792
FY17
2,330
FY18
1,793
FY19
2,128
FY20
2,209
2,593
the
Exhibit 7:
Cash would be ~78% of capital employed
Net Cash (INR/sh)
64
64
71
58
Net Cash (as % of Cap Employed)
68
68
72
5.3
(3.7)
3.9
(2.5)
(4.8)
(4.5)
CY13 FY15 FY16
(15m)
FY20 FY21E FY22E
FY21E FY22E
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 8:
EPS and EPS growth trend
EPS (INR)
65.2
42.5
11.5
(4.5)
460
FY17
2.1
15.0
(22.5)
470
FY18
540
FY19
419
FY20
(28.0)
302
430
Growth (%)
Exhibit 9:
Trend in return profile
RoIC (%)
30.4
19.9
27.7
21.2
17.9
15.8
25.2
RoE (%)
22.7
18.9
16.7
15.3
13.4
10.4
9.4
18.5
12.6
432
FY15
(15m)
482
FY16
FY21E FY22E
FY15
(15m)
FY16
FY17
FY18
FY19
FY20
FY21E
FY22E
Source: Company, MOFSL
Source: Company, MOFSL
2 December 2020
3
 Motilal Oswal Financial Services
C
orner
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the
Financials and valuations
Standalone – Income Statement
Y/E March
Income from Operations
Less: Excise Duty
Net Op. Revenues
Change (%)
EBITDA
Margin (%)
Depreciation
EBIT
Fin. charges
Other Income
PBT bef. EO Exp.
EO Income/(Exp)
PBT after EO Exp.
Current Tax
Deferred Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY17
1,12,426
8,074
1,04,352
7.6
19,604
18.8
4,562
15,042
272
6,174
20,945
3,711
24,656
6,904
340
29.4
17,412
14,442
-4.5
13.8
FY18
1,18,722
1,821
1,16,902
12.0
20,933
17.9
4,672
16,261
33
5,118
21,346
-939
20,407
7,016
-318
32.8
13,708
14,339
-0.7
12.3
FY19
1,20,850
0
1,20,850
3.4
21,541
17.8
4,021
17,520
133
5,953
23,340
0
23,340
7,051
355
31.7
15,934
15,934
11.1
13.2
FY20
98,416
0
98,416
-18.6
14,834
15.1
3,833
11,001
102
5,466
16,365
-8,616
7,749
3,324
-1,424
24.5
5,848
12,351
-22.5
12.5
FY21E
92,453
0
92,453
-6.1
10,057
10.9
3,500
6,557
100
5,385
11,842
-5,674
6,168
1,536
0
24.9
4,632
8,893
-28.0
9.6
(INR m)
FY22E
1,06,762
0
1,06,762
15.5
15,188
14.2
3,696
11,493
100
5,012
16,405
0
16,405
3,734
0
22.8
12,671
12,671
42.5
11.9
Standalone – Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
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
Provisions
Net Current Assets
Deferred Tax assets
Appl. of Funds
E: MOFSL Estimates
FY17
314
87,691
88,005
0
88,005
23,911
8,774
15,137
1,289
39,266
57,630
11,804
11,862
17,176
16,788
30,002
13,399
4,767
11,836
27,628
4,676
87,996
-9
FY18
305
99,508
99,813
0
99,813
26,261
13,086
13,175
3,132
52,404
65,658
12,258
16,156
18,878
18,366
39,461
20,231
6,670
12,560
26,197
4,905
99,813
0
FY19
295
90,967
91,262
0
91,262
28,991
17,338
11,653
6,546
40,538
63,764
14,443
15,675
12,527
21,118
35,834
15,885
9,200
10,749
27,929
4,596
91,262
0
FY20
295
92,399
92,694
0
92,694
34,629
21,271
13,358
4,932
40,415
69,928
11,159
14,131
22,560
22,079
40,506
16,050
8,277
16,180
29,422
4,567
92,694
0
FY21E
295
95,873
96,168
0
96,168
39,061
24,771
14,290
3,000
40,415
70,350
10,132
12,158
24,947
23,113
36,453
12,416
7,396
16,641
33,897
4,567
96,168
0
(INR m)
FY22E
295
1,05,376
1,05,671
0
1,05,671
43,061
28,467
14,594
3,500
40,415
83,342
11,700
14,040
36,249
21,352
40,747
13,799
8,541
18,407
42,595
4,567
1,05,671
0
2 December 2020
4
 Motilal Oswal Financial Services
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orner
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the
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoIC
RoE
RoCE
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Working Cap. Turnover (Days)
FY17
460
605
2,803
165
35.8
25.7
19.5
4.2
3.4
18.1
1.4
253.1
21.2
15.8
23.1
4.4
1.2
41
39
47
37
FY18
470
623
3,270
100
26.8
25.2
19.0
3.6
2.9
16.3
0.8
407.6
25.2
15.3
22.8
4.5
1.2
38
50
63
23
FY19
540
677
3,095
105
23.4
21.9
17.5
3.8
2.8
15.6
0.9
2.6
22.7
16.7
24.6
4.2
1.3
44
47
48
47
FY20
419
549
3,143
105
63.7
28.2
21.6
3.8
3.3
22.0
0.9
309.2
18.9
13.4
17.9
2.8
1.1
41
52
60
25
FY21E
302
420
3,261
33
25.0
44.1
31.6
4.1
4.0
36.5
0.2
133.4
10.4
9.4
12.6
2.4
1.0
40
48
49
35
FY22E
430
555
3,583
89
25.0
30.9
24.0
3.7
3.3
23.4
0.7
324.1
18.5
12.6
16.4
2.5
1.0
40
48
47
22
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
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
24,655
4,604
-2,762
-7,246
3,848
23,099
14,567
-6,621
7,946
10,468
8,613
12,460
-20,198
-500
-32
-5,967
0
-26,697
330
959
1,289
FY18
20,406
4,672
-2,720
-6,761
4,588
20,185
17,287
-4,846
12,441
-10,620
3,763
-11,703
0
0
-6
-3,295
55
-3,246
2,338
1,289
3,627
FY19
23,410
4,045
-2,769
-7,822
-6,888
9,976
5,931
-5,854
78
15,821
7,691
17,659
-21,569
0
-60
-3,679
0
-25,308
-1,717
3,627
1,910
FY20
10,069
4,445
-2,948
-4,612
10,206
17,160
13,361
-4,243
9,118
782
-5,267
-8,729
0
0
0
-3,731
-259
-3,990
642
1,910
2,552
FY21E
11,842
3,500
-5,285
-1,536
-2,088
6,434
6,434
-2,500
3,934
0
5,385
2,885
0
0
-100
-1,158
0
-1,258
8,060
2,552
10,613
(INR m)
FY22E
16,405
3,696
-4,912
-3,734
2,604
14,058
14,058
-4,500
9,558
0
5,012
512
0
0
-100
-3,168
0
-3,268
11,302
10,613
21,915
2 December 2020
5
 Motilal Oswal Financial Services
C
orner
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ffice
the
NOTES
2 December 2020
6
 Motilal Oswal Financial Services
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ffice
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 becomes inconsistent with the investment rating legend, the Research Analyst shall within 28 days of the
inconsistency, 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 Securities 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 Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com.
MOFSL 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 (MCX) & National Commodity & Derivatives Exchange Ltd. (NCDEX) for its stock broking
activities & is Depository participant with Central Depository Services Limited (CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual
Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities 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 Securities 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
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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 Securities 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.
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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
the
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The associates of MOFSL may have:
-
financial interest in the subject company
-
actual/beneficial ownership of 1% or more securities in the subject company
-
received compensation/other benefits from the subject company in the past 12 months
-
other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on
the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL
even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
-
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
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be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
-
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.: 022-3980
4263; www.motilaloswal.com. Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080
1000. Compliance Officer: Neeraj Agarwal, Email Id:
na@motilaloswal.com,
Contact No.:022-38281085.
Registration details: MOFSL: SEBI Registration: INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst:
INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers
PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth management solutions.
*Motilal
Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. *Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd.
offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products.
* MOFSL 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. The existing registration no(s) of MOFSL would be used until receipt of new MOFSL registration numbers.
the
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