14 December 2020
Update | Sector:Maruti Suzuki
Automobiles
Maruti Suzuki
BSE SENSEX
S&P CNX
46,253
13,558
CMP: INR7,694
TP: INR8,150 (+6%)
Buy
Cautious optimism on demand outlook
Lower discounts, operating leverage and price hikes to dilute raw
material cost inflation
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
MSIL IN
302
2324.1 / 31.8
8007 / 4002
6/2/-6
8245
43.6
We met the management of Maruti Suzuki (MSIL) to get an update on the
evolving demand scenario, supply-side issues, cost headwinds, etc. The
management is cautiously optimistic about demand. However, cost headwinds
are material and the company is looking to dilute it through lower discounts,
operating leverage, and price rises.
Financials & valuations (INR b)
Y/E MARCH
FY20 FY21E FY22E
Sales
756
679
858
EBITDA
73.0
62.3 103.7
Adj. PAT
56.5
51.4
81.6
EBIT Margin (%)
5.0
4.5
8.1
Cons. Adj. EPS (INR) 188.0 171.4 273.8
EPS Gr. (%)
-25.8
-8.8
59.8
BV/Sh. (INR)
1,603 1,701 1,899
Ratios
RoE (%)
11.7
10.0
14.2
RoCE (%)
14.6
12.5
18.2
Payout (%)
52
43
27
Valuations
P/E (x)
40.9
44.9
28.1
P/BV (x)
4.8
4.5
4.1
Div. Yield (%)
1.0
0.8
0.8
FCF Yield (%)
0.0
1.8
2.6
Outlook cautiously optimistic; pent-up demand to be met by 3Q
Festive season (32 days) was strong, with some models sold out. Growth
was good across the industry.
There is optimism at this point due to strong festive sales and good
momentum post that. Dealer inventory is low (from 130k units at the end of
Mar’20 v/s 80k units at the end of Oct’20 and estimated 58k units or less
than two weeks at the end of Nov’20).
There is a reasonable case for optimism, but is a little early to call out, so it
is cautiously optimistic for the remainder of FY21.
Pent-up demand is almost over as reflected in new bookings (old bookings
are almost over now). In a media interview (link), Mr. Shashank Srivastava,
Executive Director, MSIL, said retail demand during Apr-Nov’20 declined
~15%. It expects pent-up demand to be fully met by 3QFY21 and expects 4Q
to be purely new demand. Hence, 4QFY21 is critical to see sustenance in
demand.
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Sep-20
56.4
16.8
21.9
5.0
Jun-20 Sep-19
56.3
56.2
17.1
15.0
21.5
5.2
23.4
5.3
Rural and first-time buyers still driving demand
FII Includes depository receipts
Stock Performance (1-year)
Maruti Suzuki
Sensex - Rebased
9,000
7,600
Demand recovery has been good and driven by: a) first-time buyers and
second car sales (due to the COVID-19 pandemic), b) pent-up demand, and
c) rural markets aided by government stimulus.
Retail demand has been strong in rural markets, led by hatchbacks. SUVs
continue to do very well.
Demand is driven by first-time buyers (~50% of total) and additional car
buyers (~28%), whereas replacement demand (~22%) continues to be weak.
SUV segment a focus area for MSIL; diesel demand strong in SUV
6,200
4,800
3,400
The fast growing SUV segment is very important for MSIL. It plans to grow in
the SUV segment by: a) bringing in more models, b) ushering in technology,
and c) filling the gaps from entry to mid-sized SUV segment. MSIL is
committed to opportunities in the SUV market and will launch many new
models in the coming years.
Diesel remains relevant in the SUV segment. MSIL is closely evaluating a re-
entry. As per the management, even under BS-VI there is good demand for
diesel SUVs.
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
Maruti Suzuki
Lack of diesel has led to some market share loss for Brezza in the compact SUV
segment. Hence, MSIL is closely evaluating this opportunity and its re-entry in
the above 1.5ltr diesel category.
Several positives and negatives for margin; volume growth is key
Commodity price inflation is quite significant in core commodities as well as
precious metals. While steel prices have already seen a sharp rise, MSIL expects
a further increase in steel prices. Precious metals like rhodium and palladium
are seeing a sharp increase.
Some of the costs saved in 1HFY21 would return due to: a) increase in
production, and b) normalization of marketing spends.
On the positive side, a) discounts are low, b) a price increase is planned in
Jan’21, and c) operating leverage would dilute the impact of the headwinds.
In a nutshell, sustained volume recovery is important for it to attain its targeted
EBIT margin of 8-10%.
CAFE norms compliance roadmap in place; Toyota alliance working on
future technologies
CAFE norms are applicable from 2023, but the industry has requested the
government to delay it.
Hybrid and CNG are two important means to meet CAFE norms. CNG share has
been rising (currently 11-12% from 7% last year) and a further increase would be
linked to the availability of CNG network.
The management expects hybrids to be a relevant transitory solution over the
next five years, post that it would be EVs. Hybrids would need government
support to lower prices and realize its potential. Currently, the Toyota alliance
focuses on hybrids, but EVs are also planned.
Other highlights
Semiconductor availability is not yet a problem for MSIL. With BOS being a
single source supplier of electronics, there could be some impact from a
disruption in the supply of semiconductors. The management expects some
clarity in the next couple of weeks.
Capacity would increase to 2.1-2.2m by Apr’21 as the third line of 250k units
would start operations. It has enough capacity to cater for any sharp increase in
demand.
Considering the very low inventory at the end of Nov’20 and further reduction in
Dec’20 due to semi-annual maintenance shutdowns, inventory replenishment
would drive wholesales in Jan’21.
Valuation and view
PVs in general and MSIL in particular has seen a much sharper than expected
recovery, driven by pent-up demand, increased preference for personal
mobility, and its strength in hatchbacks.
With a sharp increase in commodity prices and normalization of cost (from lows
of 1HFY21), it is critical volume recovery sustains for EBIT margin to recover to
8-9% (our estimate and management’s targeted range).
14 December 2020
2
 Motilal Oswal Financial Services
Maruti Suzuki
The long-term outlook for PVs is closely linked with the economic growth and
resultant job/income growth. Lackluster economic growth has led to anemic
growth in last 5 years (1.3% CAGR period) in domestic PV volumes. We are
building in ~7% CAGR in industry volumes over FY20-25E and ~8% CAGR for
MSIL.
We estimate 20% PAT CAGR over FY20-23E on the back of a strong recovery in
volumes and EBIT margin (420bp to 9.2% by FY23E).
The stock trades at 28.1x/23.6x FY22E/FY23E consolidated EPS (as against its
5/10 year average P/E of 29.9x/23.5x. Strong volume recovery in 2HFY21/FY22 is
critical to the stock’s performance from here on. Maintain
Buy,
with a TP of
INR8,150/share (~25x Mar’23E consolidated EPS), a 15% discount to its five-year
average P/E.
Exhibit 2: One-year forward P/B (x) band
Max (x)
-1SD
P/B (x)
5.0
4.0
26.4
19.1
9.2
3.0
20.1
2.0
Min (x)
Avg (x)
+1SD
3.9
3.3
2.7
2.2
2.2
Max (x)
-1SD
Exhibit 1: One-year forward P/E (x) band
54.0
42.0
30.0
18.0
6.0
11.9
P/E (x)
Min (x)
Avg (x)
+1SD
44.9
1.0
Source: MOFSL
Source: MOFSL
14 December 2020
3
 Motilal Oswal Financial Services
Maruti Suzuki
Story in charts: Expect 20% EPS CAGR over FY20–23E
Exhibit 1: Market share gains continue in most segments
FY16
Mini
Compact
Mid-size
UV
Domestic PV
79.8
42
25.2
25.6
46.8
FY17
67.8
46.2
54.8
32.8
38.2
47.4
FY18
71.3
52.2
61.8
30
38.8
50.1
FY19
72.3
56.4
57.9
25.8
38.2
51.2
FY20
79.0
57.4
61.9
25.8
31.4
51.2
FY21
YTD
83.8
52.6
61.6
18.9
27.4
48.2
FY15
FY16
FY17
FY18
FY19
FY20 FY21E FY22E FY23E
Source: Company, MOFSL
(16.1)
Exhibit 2: Trend in volume and growth over FY20–22E
Total volumes ('000 units)
11.9
10.6
9.8
13.4
4.7
(9.6)
Growth (%)
25.8
8.9
Compact - Sedan 58.1
Source: Company, MOFSL
Exhibit 3: MSIL to operate at low utilization
Capacity ('000 units)
109
84
102
90 93
76
86
Cap. Util (%) - RHS
86
Exhibit 4: Trend in product mix (INR)
Upto 400k
Price 600-800k
78
71
79
1
23
23
52
Price 400-600k
Price 800k and above
6
34
20
40
6
40
17
36
5
41
20
35
4
41
18
37
4
40
18
37
4
40
18
38
95 98 94 95
0
24
24
52
3
23
26
47
6
26
23
44
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21E FY22E
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 5: JPY-based royalty to reduce gradually
Royalty in JPY(% of sales)
Royalty in INR(% of sales)
Exhibit 6: Discounts to normalize in FY21
Discounts (INR/Car)
4.5
5.0
as a % of Realizations
4.9
3.9
3.2
3.5
3.9
4.3
3.5 3.5
4.7
0.0
0.8
2.2
2.8
3.3 3.3
3.8
5.1
5.6
5.7
5.3
5.6
5.1
4.5
3.3
2.7
Source: Company, MOFSL
Source: Company, MOFSL
14 December 2020
4
 Motilal Oswal Financial Services
Maruti Suzuki
Exhibit 7: Fixed cost as a percentage of sales
Fixed Cost as % Sales
10.3%
7.7%
8.6%
8.6%
9.7%
9.1%
9.3%
11.5%
12.2%
9.7%
Exhibit 8: EBITDA margin and EBITDA per car
EBITDA (INR '000/car)
13.4
15.4 15.2 15.4
12.6
9.7
9.2
12.1
13.2
EBITDA Margins (%)
10.1%
11.8
9.7
36
45
52
62
66
69
58
47
44
58
65
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 9: EPS (INR) and growth in EPS
EPS
40.5
33.5
44.4
36.6
7.3
19.0
-5.1
-25.8
82
94
126 182 249 267 253 188
171 274 326
-8.8
Growth (%) - RHS
59.8
Exhibit 10: Dividend payout (%) and cash balance (INR b)
Cash (INR b)
Dividend Payout (%)
51.6
42.5
26.8
37.5
15.5
37.1 37.6 38.8
24.5 23.7
11.7
77
15.2
106 134 193 276 342 357 358 411 485 552
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 11: FCF generation to recover from FY22 (INR b)
FCF conversion (FCF as % of PAT)
8.7
8.0
6.3
4.6
5.0
4.8
Capex (% of sales)
Exhibit 12: RoE v/s RoIC (%)
ROE
ROIC
84
79
65
56
26
18
20
5.5
60
4.5
4.3
4.1
4.2
18
74
67
13
40
80
24
51
85
109
94
100
26
0
19
13
27
21
14
15
15
18
16
12
10
Source: Company, MOFSL
Source: Company, MOFSL
14 December 2020
5
 Motilal Oswal Financial Services
Maruti Suzuki
Exhibit 13: Snapshot of revenue model
’000 units
A1/LCVs
Growth (%)
% of domestic volume
MPV (Vans)
Growth (%)
% of domestic volume
A2 (other hatchbacks)
Growth (%)
% of domestic volume
A3 (Dzire, Ciaz)
Growth (%)
% of domestic volume
UVs (Ertiga, Compact SUV)
Growth (%)
% of domestic volume
Total domestic
Growth (%)
% of total volume
Exports
Growth (%)
% of total volume
Total volumes
Growth (%)
ASP (INR ’000/unit)
Growth (%)
Net sales (INR b)
FY16
0
0.0
143
11.2
11.0
779
6.8
59.7
288
18.3
22.1
94
38.4
7.2
1,305
11.5
91.3
124
2
9
1,429
10.6
403
4.1
575
FY17
1
0.1
152
6.0
10.5
832
6.7
57.6
264
-8.4
18.3
196
107.3
13.6
1,445
10.7
92.1
124
0
8
1,569
9.8
434
7.7
680
FY18
10
0.6
155
2.1
9.4
936
12.5
56.6
299
13.1
18.1
254
29.6
15.3
1,654
14.5
92.9
126
2
7
1,780
13.4
448
3.3
798
FY19
24
138.0
1.4
179
15.1
10.2
987
5.5
56.3
300
0.3
17.1
264
4.1
15.1
1,754
6.1
94.2
109
-14
6
1,862
4.7
462
3.0
860
FY20
22
-8.8
1.5
118
-33.7
8.1
881
-10.8
60.3
204
-31.9
14.0
235
-10.9
16.1
1,460
-16.7
93.5
102
-6
7
1,563
-16.1
484
4.8
756
FY21E
24
8.0
1.8
100
-15.8
7.5
823
-6.5
61.8
166
-18.9
12.5
219
-6.9
16.5
1,331
-8.8
94.3
81
-21
6
1,412
-9.6
481
-0.7
679
FY22E
28
20.0
1.7
125
25.0
7.4
1,029
25.0
61.2
234
41.3
13.9
266
21.3
15.8
1,682
26.3
94.7
95
17
5
1,777
25.8
483
0.5
858
FY23E
31
10.0
1.7
135
8.0
7.3
1,116
8.5
60.8
267
14.2
14.6
287
7.9
15.6
1,836
9.2
94.9
99
4
5
1,935
8.9
0
0.0
0
Source: MOFSL, Company
14 December 2020
6
 Motilal Oswal Financial Services
Maruti Suzuki
Financials and valuations
Income Statement
Y/E March
Net Op. Income
Change (%)
EBITDA
Change (%)
EBITDA margin (%)
Depreciation
EBIT
EBIT margin (%)
Interest
Other Income
EO Expense
Def Revenue Exp./Others
PBT
Tax
Effective tax Rate (%)
PAT
Change (%)
% of Net Sales
Adj. PAT
Change (%)
FY17
680,348
18.2
103,517
16.5
15.2
26,021
77,496
11.4
894
23,001
0
0
99,603
26,101
26.2
73,502
37.0
11.0
73,502
37.0
FY18
797,627
17.2
123,122
18.9
15.4
27,579
95,543
12.0
3,457
20,455
2,507
0
110,034
32,816
29.8
77,218
5.1
9.9
78,977
7.4
FY19
860,203
7.8
107,993
-12.3
12.6
30,189
77,804
9.0
758
25,610
-2,000
0
104,656
29,650
28.3
75,006
-2.9
9.0
73,573
-6.8
FY20
756,106
-12.1
73,026
-32.4
9.7
35,257
37,769
5.0
1,329
34,208
0
0
70,648
14,142
20.0
56,506
-24.7
7.9
56,506
-23.2
FY21E
678,908
-10.2
62,299
-14.7
9.2
31,416
30,883
4.5
850
34,471
0
0
64,504
13,109
20.3
51,396
-9.0
8.0
51,396
-9.0
FY22E
858,163
26.4
103,695
66.4
12.1
34,436
69,258
8.1
750
36,261
0
0
104,770
23,138
22.1
81,632
58.8
10.0
81,632
58.8
(INR m)
FY23E
954,293
11.2
125,848
21.4
13.2
37,764
88,085
9.2
750
38,147
0
0
125,482
28,206
22.5
97,276
19.2
10.8
97,276
19.2
Balance Sheet
Y/E March
Sources of Funds
Share Capital
Reserves
Net Worth
Loans
Deferred Tax Liability
Capital Employed
Application of Funds
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Curr. Assets, Loans
Inventory
Sundry Debtors
Cash & Bank Balances
Loans & Advances
Others
Current Liab. & Prov.
Sundry Creditors
Others
Provisions
Net Current Assets
Appl. of Funds
E: MOFSL estimates
FY17
1,510
362,801
364,311
4,836
4,662
373,809
FY18
1,510
416,063
417,573
1,108
5,589
424,270
FY19
1,510
459,905
461,415
1,496
5,640
468,551
FY20
1,510
482,860
484,370
1,063
5,984
491,417
FY21E
1,510
512,397
513,908
1,063
5,984
520,955
FY22E
1,510
572,170
573,681
1,063
5,984
580,728
(INR m)
FY23E
1,510
633,015
634,526
1,063
5,984
641,573
186,595
53,668
132,927
12,523
284,810
77,392
32,622
11,992
138
978
31,662
133,843
83,673
42,328
7,842
-56,451
373,809
214,239
80,649
133,590
21,259
352,902
81,841
31,608
14,618
711
2,878
32,026
165,322
104,970
50,055
10,297
-83,481
424,270
263,293
109,215
154,078
16,001
365,150
89,815
33,257
23,104
1,789
5,126
26,539
156,493
96,330
51,069
9,094
-66,678
468,551
297,969
140,157
157,812
13,374
364,676
84,390
32,149
21,270
211
5,246
25,514
128,835
74,941
44,889
9,005
-44,445
491,417
330,343
171,573
158,770
10,000
364,676
126,876
29,760
13,020
53,336
5,246
25,514
139,368
87,421
44,889
7,058
-12,492
520,955
365,343
206,009
159,334
10,000
364,676
212,017
37,618
16,458
127,181
5,246
25,514
165,299
110,503
44,889
9,907
46,718
580,728
405,343
243,773
161,570
10,000
364,676
284,485
41,832
18,302
193,592
5,246
25,514
179,159
122,882
44,889
11,388
105,326
641,573
14 December 2020
7
 Motilal Oswal Financial Services
Maruti Suzuki
Financials and valuations
Ratios
Y/E March
Basic (INR)
Adjusted EPS
Consol. EPS
Cash EPS
Book Value per Share
DPS
Div. payout (%)
Valuation (x)
Consol. P/E
Cash P/E
EV/EBITDA
EV/Sales
P/BV
Dividend Yield (%)
FCF Yield (%)
Profitability ratios (%)
RoIC
RoE
RoCE
Turnover ratios
Debtors (Days)
Inventory (Days)
Creditors (Days)
Work. Cap. (Days)
Asset Turnover (x)
Leverage ratio
Net Debt/Equity (x)
FY17
243.3
248.6
334.8
1,206
75.0
37.1
30.9
23.0
19.7
3.1
6.4
1.0
3.0
60.0
20.2
26.9
6
21
65
-39
1.8
-0.7
FY18
261.4
266.7
358.0
1,382
80.0
37.6
28.8
21.5
16.0
2.5
5.6
1.0
3.4
84.1
18.5
27.3
7
17
70
-46
1.9
-0.8
FY19
243.6
253.3
353.2
1,527
80.0
38.8
30.4
21.8
18.1
2.4
5.0
1.0
0.8
64.7
16.3
22.1
10
16
59
-33
1.8
-0.8
FY20
187.1
188.0
304.7
1,603
80.0
51.6
40.9
25.3
26.8
2.7
4.8
1.0
0.0
26.5
11.7
14.6
11
17
51
-23
1.5
-0.7
FY21E
170.1
171.4
275.4
1,701
60.0
42.5
44.9
27.9
30.6
3.0
4.5
0.8
1.8
21.4
10.0
12.5
7
18
67
-42
1.3
-0.8
FY22E
270.2
273.8
387.8
1,899
60.0
26.8
28.1
19.8
17.7
2.3
4.1
0.8
2.6
56.3
14.2
18.2
7
18
68
-42
1.5
-0.8
FY23E
322.0
326.0
451.0
2,101
100.0
37.5
23.6
17.1
14.0
2.0
3.7
1.3
2.8
79.3
15.3
19.7
7
18
68
-42
1.5
-0.9
Cash Flow Statement
Y/E March
Profit before Tax
Interest
Depreciation
Direct Taxes Paid
(Inc.)/Dec. in WC
Other Items
CF from Oper. Activity
(Inc.)/Dec. in FA
Free Cash Flow
(Pur.)/Sale of Invest.
CF from Inv. Activity
Change in Net Worth
Inc./(Dec.) in Debt
Interest Paid
Dividends Paid
CF from Fin. Activity
Inc./(Dec.) in Cash
Add: Op. Balance
Closing Balance
E: MOFSL estimates
2017
99,603
894
26,021
-23,214
21,940
-22,451
102,793
-33,723
69,070
-58,056
-91,779
0
2,527
-1,095
-12,725
-11,293
-279
391
112
2018
110,034
3,457
27,579
-30,550
28,058
-20,728
117,850
-38,653
79,197
-44,168
-82,821
0
-3,728
-3,464
-27,268
-34,460
569
130
699
2019
104,656
758
30,189
-31,428
-13,196
-25,047
65,932
-47,000
18,932
11,617
-35,383
0
388
-732
-29,134
-29,478
1,071
699
1,770
2020
70,948
1,329
35,257
-14,357
-25,659
-33,467
34,051
-33,990
61
29,351
-4,639
0
-524
-1,342
-29,134
-31,000
-1,588
1,770
182
2021E
64,504
850
31,416
-13,109
21,172
-34,471
70,362
-29,000
41,362
34,471
5,471
0
0
-850
-21,859
-22,709
53,124
211
53,335
2022E
104,770
750
34,436
-23,138
14,636
-36,261
95,192
-35,000
60,192
36,261
1,261
0
0
-750
-21,859
-22,609
73,845
53,336
127,181
(INR m)
2023E
125,482
750
37,764
-28,206
7,802
-38,147
105,444
-40,000
65,444
38,147
-1,853
0
0
-750
-36,431
-37,181
66,411
127,181
193,592
14 December 2020
8
 Motilal Oswal Financial Services
Maruti Suzuki
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30
days take appropriate measures to make the recommendation consistent with the investment rating legend.
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
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Research Analyst views on Subject Company may vary based on Fundamental research and
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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
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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
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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
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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
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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
********************************************************************************************************************************
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
14 December 2020
9
 Motilal Oswal Financial Services
Maruti Suzuki
-
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.
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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
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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
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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.
14 December 2020
10