13 January 2021
3QFY21 Results Update | Sector: Utilities
CESC
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
CESC IN
133
90.6 / 1.2
784 / 366
3/-31/-26
276
CMP: INR684
TP: INR873 (+28%)
Buy
S/A improves as demand recovers
Dhariwal, DF performances continue to improve
Financials & Valuations (INR b)
Y/E MARCH
2020 2021E 2022E
Sales
EBITDA
Adj. PAT
EBITDA Margin (%)
Cons. Adj. EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
Ratios
Net D:E
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA(x)
Div. Yield (%)
7.0
0.9
6.0
2.9
7.0
0.9
6.3
6.6
7.1
0.8
6.0
6.9
Sep-19
49.9
23.3
17.8
9.0
1.3
14.0
9.4
20.5
1.2
13.0
9.0
46.3
1.0
12.1
8.7
48.8
110.1 106.6 110.8
35.4
13.0
32.1
97.7
10.0
34.1
13.0
32.0
97.3
-0.5
33.5
12.9
30.2
96.9
-0.4
CESC’s 3Q results highlight volume recovery in the S/A business. Volumes in
S/A were just 1% YoY lower (v/s 1H: -21% YoY). S/A PAT was up 3% YoY.
Consol. PAT, on the other hand, grew 21% YoY, partly led by profit at
Dhariwal and improved performance at Crescent & Surya.
Performances at Dhariwal and distribution franchises (DFs) would continue
to improve. Furthermore, the co. has declared an interim dividend of
INR45/sh, highlighting the co.’s willingness to return excess cash. Despite
factoring in the tightening of norms at Haldia and S/A, the stock trades
attractively at 7x FY22 P/E. Maintain Buy, with TP of INR873/sh.
S/A PAT rose 3% YoY to INR1.8b (broadly in line with our estimate of INR1.7b).
This was largely on account of just 1% YoY decline in sales volumes at 2.6BU.
Consolidated PAT, though, was up 21% YoY to INR3.2b in the quarter, led by
improved performances at Dhariwal and Crescent & Surya.
CESC has further declared an interim dividend of INR45/sh, indicating
payout ratios of ~50% (v/s 20–25% payout historically), significantly higher
than our est. of INR23/sh for FY21. This is a positive surprise and highlights
the co.’s willingness to return excess cash to shareholders. As per our
interaction with the co., receivables have declined to ~INR28b from INR33b
at the end of 1H. Further recovery is expected in 4Q.
CESC approved a proposal to consolidate all its distribution businesses (except
Kolkata) into a new wholly owned subsidiary. The co. further indicated plans to
increase its holding in NPCL to 72.7% from the current 49.6%.
Dhariwal reported profit of INR280m (v/s loss of ~INR150m in 3QFY20) on
account of a new PPA signing and the pass-through of higher coal cess in
tariff. Dhariwal had signed a 185MW PPA with Maharashtra in 3QFY20,
which had been extended up to Jan ’21.
Profits of Crescent & Surya rose to INR60m in 3QFY21 v/s loss of INR180m
in 3QFY20. The previous year was impacted by equipment-related issues.
DFs in Rajasthan reported profit of INR210m in 3QFY21 v/s profit of
INR270m in 3QFY20. The co.’s recently acquired Malegaon DF reported loss
of INR140m in 3QFY21.
Profits of Haldia improved to INR900m in 3QFY21 v/s INR830m in 3QFY20
on account of O&M savings.
Subdued power demand has impacted the profitability of CESC’s businesses
in the near term. However, the medium-term story remains intact. Dhariwal
has turned profitable, and the performances of DFs should continue to
improve as the co. gains a better understanding of the circles and leverages
from its experience in Kolkata.
S/A profitability improves; dividend of INR45/sh declared
722.7 774.9 824.5
New PPA, coal cess pass-through aids Dhariwal
Shareholding pattern (%)
As On
Sep-20 Jun-20
Promoter
49.9
49.9
DII
25.6
23.8
FII
16.1
17.9
Others
8.4
8.4
FII Includes depository receipts
Strong FCF generation; maintain Buy
;
Aniket Mittal – Research Analyst
(Aniket.Mittal@MotilalOswal.com)
13 February 2020
1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
CESC
CESC’s existing Distribution business is high RoE and delivers steady growth.
Generation assets have healthy FCF. The stock trades attractively at ~7x FY22E
P/E, even as earnings visibility at Dhariwal improves, despite factoring in the
tightening of norms at Haldia and S/A.
Untied generation capacity and scale-up of DFs have the potential to boost
earnings. We value the stock at 9x 1yr forward P/E. Maintain Buy, with TP of
INR873/sh.
Quarterly performance (standalone) – INR m
Y/E March
Sales
EBITDA
Change (%)
As of % Sales
Depreciation
Interest
Other Income
Regulatory (inc)/exp
PBT
Tax
Effective Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
1Q
23,590
4,420
-10.9
18.7
1,090
1,300
230
-500
2,760
590
21.4
2,170
2,170
17.9
FY20
2Q
3Q
22,460 16,480
4,630
2,770
-9.4
37.1
20.6
16.8
1,080
1,100
1,270
1,170
450
290
-480 -1,350
3,210
2,140
460
380
14.3
17.8
2,750
1,760
2,750
1,760
1.5
1.7
4Q
15,830
2,510
67.3
15.9
1,210
1,700
490
-2,970
3,060
560
18.3
2,500
2,500
-19.1
1Q
15,850
2,280
-48.4
14.4
1,170
1,360
340
-1,450
1,540
200
13.0
1,340
1,340
-38.2
FY21
2Q
3QE
19,890 16,590
3,380
2,990
-27.0
7.9
17.0
18.0
1,130
1,160
1,210
1,170
140
280
-810 -1,140
1,990
2,080
-290
260
-14.6
12.5
2,280
1,820
2,280
1,820
-17.1
3.4
FY20
4QE
22,637
10,324
311.3
45.6
1,223
1,608
584
3,400
4,677
1,682
36.0
2,995
2,995
19.8
78,359
14,328
5.5
18.3
4,477
5,442
1,459
-5,319
11,186
2,009
18.0
9,178
9,178
-2.0
FY21E
74,967
18,974
32.4
25.3
4,683
5,348
1,344
0
10,287
1,852
18.0
8,435
8,435
-8.1
FY21
3QE
16,007
4,101
48.1
25.6
1,151
1,150
290
0
2,091
376
18.0
1,715
1,715
-2.6
Var.
(%)
4
-27
1
2
-4
-1
6
6
Source: Company, MOFSL
Exhibit 1: Standalone – operating metrics
Units sold
change YoY
Realization
T&D loss
Gross generation
change YoY
Generation fuel cost
Power purchase
Power purchase cost
MU
%
INR/kWh
%
MU
%
INR/kWh
MU
INR/kWh
1QFY20
3,057
7.6
7.7
9.0
1,718
0.5
2.7
1,774
5.0
2QFY20
2,931
2.0
7.7
9.0
1,713
-1.1
2.7
1,657
5.1
3QFY20
2,188
3.5
7.5
9.0
1,224
-10.3
2.4
1,267
5.3
4QFY20
2,107
-8.0
7.5
8.5
1,483
-0.7
2.3
933
6.0
1QFY21
2,118
-30.7
7.5
8.5
1,329
-22.6
2.5
1,091
5.7
2QFY21
3QFY21
2,603
2,157
-11.2
-1.4
7.6
7.7
9.0
9.0
1,540
1,209
-10.1
-1.2
2.5
2.2
1,465
1,267
5.2
5.3
Source: Company, MOFSL
Exhibit 2: Consolidated PAT breakup – INR m
INR m
Standalone
Haldia
Dhariwal
Crescent & Surya
Rajasthan DFs
Malegaon
Noida
Others
Minority
Consolidated PAT
3QFY20
1,760
830
-150
-180
270
140
-40
40
2,670
3QFY21
1,820
900
280
60
210
-140
120
30
-40
3,240
Source: Company, MOFSL
13 January 2021
2
 Motilal Oswal Financial Services
CESC
Valuation and view
Subdued power demand, with the onset of COVID, had impacted volumes in the
Distribution and Generation businesses. Accordingly, profitability was impacted
amid lower efficiency gains and the lack of new tariff order approvals.
However, as volumes recover, performance in S/A is improving. Dhariwal has
turned profitable, and the performances of DFs should continue to improve as
the co. gains a better understanding of the circles and leverages from its
experience in Kolkata.
CESC’s generation assets generate healthy FCF. Its existing Distribution business
is high RoE and delivers steady growth.
Despite factoring in the tightening of norms at Haldia and S/A, the stock trades
attractively at ~7x FY22E P/E. Untied generation capacity and scale-up of DFs
have the potential to boost earnings. We value the stock at 9x 1yr forward P/E.
Maintain Buy, with TP of INR873/sh.
13 January 2021
3
 Motilal Oswal Financial Services
CESC
Financials and valuations
Income Statement
Y/E March
Net Sales
Change (%)
EBITDA
% of Net Sales
Depn. & Amortization
EBIT
Net Interest
Other income
EO expense
PBT after EO
Tax
Rate (%)
Reported PAT
Minority and Associates
Adjusted PAT
Change (%)
2016
121,242
9.6
29,792
24.6
7,665
22,128
14,943
2,637
40
9,781
3,130
32.0
6,651
-666
6,024
203.5
2017
83,634
-31.0
27,845
33.3
7,148
20,697
13,724
2,300
0
9,273
3,210
34.6
6,063
-710
5,354
-11.1
2018
102,749
22.9
29,991
29.2
7,515
22,477
13,030
2,520
0
11,967
3,562
29.8
8,405
-129
8,276
54.6
2019
106,641
3.8
33,867
31.8
7,638
26,230
13,247
2,043
0
15,025
3,737
24.9
11,288
552
11,840
43.1
2020
110,146
3.3
35,355
32.1
7,814
27,541
13,574
2,025
0
15,992
3,627
22.7
12,365
655
13,021
10.0
2021E
106,588
-3.2
34,124
32.0
8,084
26,040
12,345
1,532
0
15,227
2,670
17.5
12,557
400
12,957
-0.5
2022E
110,764
3.9
33,471
30.2
8,259
25,211
11,537
1,658
0
15,332
2,870
18.7
12,462
441
12,902
-0.4
(INR m)
2023E
115,106
3.9
34,249
29.8
8,927
25,322
10,659
1,780
0
16,443
3,092
18.8
13,351
485
13,836
7.2
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liability
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Goodwill
Investments
Curr. Assets
Inventories
Account Receivables
Cash and Bank Balance
Others
Curr. Liability & Prov.
Account Payables
Provisions & Others
Net Curr. Assets
Appl. of Funds
2016
1,332
104,705
106,037
10,920
148,676
38,307
303,939
253,136
10,071
243,065
5,049
22,500
3,537
93,781
6,967
14,132
17,894
54,788
63,993
5,951
58,041
29,789
303,939
2017
1,332
104,895
106,227
12,101
155,994
38,873
313,194
267,642
1,380
266,262
3,919
0
4,224
104,322
8,454
15,596
22,931
57,340
65,533
7,890
57,642
38,789
313,194
2018
1,332
82,870
84,202
694
145,778
36,410
267,083
268,271
29,736
238,535
2,166
0
6,673
82,499
5,826
15,374
17,003
44,296
62,791
6,907
55,884
19,708
267,083
2019
1,332
88,406
89,738
821
144,721
39,404
274,684
276,618
40,132
236,485
1,614
0
6,724
89,859
7,005
17,389
15,437
50,029
60,000
6,778
53,222
29,860
274,684
2020
1,332
94,942
96,274
858
139,909
40,053
277,094
286,327
50,462
235,866
1,468
0
6,703
99,685
7,184
18,818
18,060
55,623
66,627
6,568
60,058
33,058
277,094
2021E
1,332
101,904
103,236
920
131,638
40,053
275,848
293,997
58,546
235,452
1,468
0
7,165
98,732
6,553
21,844
9,913
60,424
66,968
6,477
60,492
31,764
275,848
2022E
1,332
108,512
109,844
978
123,105
40,053
273,980
301,672
66,805
234,867
1,468
0
7,664
97,813
6,672
17,474
13,243
60,424
67,831
6,838
60,993
29,982
273,980
(INR m)
2023E
1,332
115,364
116,696
1,032
113,324
40,053
271,105
309,350
75,732
233,618
1,468
0
8,200
96,537
6,882
17,982
11,249
60,424
68,718
7,121
61,597
27,819
271,105
13 January 2021
4
 Motilal Oswal Financial Services
CESC
Financials and valuations
Ratios
2016
Valuation (x)
P/E
Cash P/E
P/BV
EV/EBITDA
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE (post-tax)
RoIC (post-tax)
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Debtor (Days)
Leverage Ratio (x)
Net Debt/EBITDA
Debt/Equity
4.4
1.1
4.8
1.1
4.3
1.5
3.8
1.4
3.4
1.3
3.6
1.2
3.3
1.0
3.0
0.9
0.5
0.4
43
0.3
0.3
68
0.4
0.4
55
0.5
0.4
60
0.5
0.4
62
0.5
0.4
75
0.5
0.4
58
0.5
0.4
57
7.2
8.4
7.1
5.0
6.4
5.0
8.7
7.4
6.0
13.6
9.1
8.0
14.0
9.4
8.5
13.0
9.0
8.5
12.1
8.7
8.1
12.2
8.8
8.2
15.1
6.7
0.9
7.8
1.5
17.0
7.3
0.9
8.5
1.5
11.0
5.8
1.1
7.4
1.8
7.7
4.7
1.0
6.5
2.6
7.0
4.4
0.9
6.0
2.9
7.0
4.3
0.9
6.3
6.6
7.1
4.3
0.8
6.0
6.9
6.6
4.0
0.8
5.7
7.3
2017
2018
2019
2020
2021E
2022E
2023E
Cash Flow Statement
Y/E March
EBITDA
WC
Others
Direct taxes (net)
CF from Op. Activity
Capex
Interest income
Investments
Others
CF from Inv. Activity
Share capital
Borrowings
Finance cost
Dividend
Others
CF from Fin. Activity
(Inc)/Dec in Cash
Opening balance
Closing balance
2016
29,792
-5,805
4,128
-3,311
24,804
-12,675
329
-309
1,102
-11,554
117
6,390
-15,303
-3,009
-5
-11,809
1,441
16,453
17,894
2017
27,845
-918
3,081
-3,457
26,552
-14,720
375
-634
1,064
-13,915
158
8,622
-15,036
-1,599
256
-7,599
5,037
17,894
22,931
2018
29,991
-6,336
4,393
-3,727
24,321
-8,944
311
568
-7,695
-15,760
22
854
-13,828
-1,902
365
-14,490
-5,928
22,931
17,003
2019
33,867
-9,779
7,731
-3,168
22,939
-8,317
340
0
2,276
-5,702
0
-1,246
-13,336
-2,790
0
-17,373
-135
17,003
16,868
2020
35,355
1,580
2,185
-2,461
30,033
-7,410
315
0
5,339
-1,757
0
-4,892
-13,306
-3,188
86
-21,299
6,977
15,437
22,414
2021E
34,124
-6,853
0
-2,670
24,601
-7,670
0
0
1,532
-6,138
0
-8,270
-12,345
-5,995
0
-26,610
-8,147
18,060
9,913
2022E
33,471
5,112
0
-2,870
35,712
-7,674
0
0
1,658
-6,016
0
-8,534
-11,537
-6,295
0
-26,365
3,330
9,913
13,243
(INR m)
2023E
34,249
170
0
-3,092
31,327
-7,679
0
0
1,780
-5,899
0
-9,781
-10,659
-6,609
0
-27,049
-1,621
13,243
11,621
13 January 2021
5
 Motilal Oswal Financial Services
CESC
NOTES
13 January 2021
6
 Motilal Oswal Financial Services
CESC
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.
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This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
13 January 2021
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 Motilal Oswal Financial Services
CESC
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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
- 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.
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