27 January 2021
3QFY21 Results Update | Sector: Cement
India Cements
Neutral
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)
CMP: INR166
TP: INR160 (-4%)
South India demand remains weak
ICEM IN
308
51.5 / 0.7
186 / 70
14/18/76
454
Weaker geographical mix to dent margins
Financial Snapshot (INR b)
Y/E MARCH
2021E 2022E 2023E
Sales
42.7
50.0
55.6
EBITDA
7.9
7.3
8.2
Adj. PAT
1.9
1.6
2.2
EBITDA Margin (%) 18.6
14.7
14.8
Adj. EPS (INR)
6.1
5.1
7.2
EPS Gr. (%)
785.5
-15.7
39.7
BV/Sh. (INR)
180.1 184.2 189.3
Ratios
Net D:E
0.6
0.5
0.5
RoE (%)
3.4
2.8
3.8
RoCE (%)
4.3
3.9
4.6
Payout (%)
11.9
19.6
28.1
Valuations
P/E (x)
27.3
32.4
23.2
P/BV (x)
0.9
0.9
0.9
EV/EBITDA(x)
10.6
11.3
9.8
EV/ton (USD)
70
69
68
Div. Yield (%)
0.4
0.6
1.2
India Cements (ICEM)’s 3QFY21 EBITDA was 10% below estimate, weighed
by a weaker sales mix. This is attributable to higher selling in non-trade and
faraway markets in the East and Central regions of India to offset weak
demand in its core market in South.
We reduce our FY21/FY22E EPS by 14%/7% as the company has guided for
the continuation of this strategy to support utilization – which would lower
average realization and increase freight cost. Maintain
Neutral.
Revenue/EBITDA at INR11.6b/INR2.2b was -3%/+67% YoY – 2%/10% below
our estimate. PAT was INR620m (est.: INR738m) v/s loss of INR68m in
3QFY20.
The miss in estimates was due to weak demand in its core market of South,
which led to the company selling more in the lower realization market of
East. Also, the share of trade sales fell to 51% (v/s 56% earlier). As a result,
while it could curtail volume decline to 11% YoY (2.38mt), realization
dropped 4% QoQ – leading to a 19% QoQ drop in EBITDA/t to INR905 (+88%
YoY).
Unitary cost was flat QoQ/YoY at INR3,976/t as an increase of 14%/8% QoQ
in power and fuel / freight cost was offset by better fixed cost absorption
and 19% QoQ decline in raw material cost.
9MFY21 rev / EBITDA / adj. PAT stood at INR29.9b/INR6.1b/INR1.5b, with
YoY change of -24%/+17%/+119%. Volumes were down 29% YoY to 5.91mt,
while EBITDA/t was up 66% YoY to INR1,024/t.
Capacity utilization has been low at 50% in 9MFY21, but improved
significantly from 35% in 1QFY21. South saw stable pricing last quarter and is
expected to remain stable in the near term.
Fixed cost is guided to sustain at INR1.5b/qtr, against INR1.95b/qtr in FY20,
due to cost reduction measures taken during the pandemic.
The company’s low-cost petcoke inventory would last up to Feb’21; thus, the
full impact of higher petcoke prices would be visible only in 1QFY22.
Gross debt stands at INR32.0b, down from INR35.0b in Mar’20. Cost of debt
stands at 8.39% p.a. v/s 9.18% p.a. in FY20.
Capex was INR0.7b in 9MFY21 and INR1.50b is guided for FY22. It is still
focused on deleveraging and improving utilization at existing capacities. The
planned expansion at Satna in Central would, thus, take time.
We expect ICEM’s market share loss in South to continue as key competitor
Ramco’s new capacities would get commissioned in three months.
We expect ICEM’s net debt to stay elevated at INR31b in FY22, implying net
debt/EBITDA of 4.3x – which remains a concern on the stock.
ICEM trades at 11.3x FY22E EV/EBITDA and USD69/t of EV/capacity. We
value it at 10x Sep’22 EV/EBITDA to arrive at TP of INR160. Maintain
Neutral.
1
3Q EBITDA up 67% YoY, but below estimate
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Highlights from management commentary
Dec-20 Sep-20 Dec-19
28.4
28.4
28.2
9.4
9.7
16.6
12.4
12.0
14.7
49.8
49.9
40.6
FII Includes depository receipts
Valuation and view
Amit Murarka - Research analyst
(Amit.Murarka@motilaloswal.com)
Basant Joshi - Research analyst
(Basant.Joshi@motilaloswal.com)
3 September 2019
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
India Cements
Quarterly Perf. (Standalone)
Y/E March
Sales Dispatches (m ton)
YoY Change (%)
Realization (INR/ton)
YoY Change (%)
QoQ Change (%)
Net Sales
YoY Change (%)
EBITDA
Margins (%)
Depreciation
Interest
Other Income
PBT before EO expense
Extra-Ord expense
PBT
Tax
Rate (%)
Reported PAT
Adj PAT
YoY Change (%)
Margins (%)
E: MOFSL Estimates
Per ton analysis
1Q
3.04
-1.1
4,828
9.1
851
324
1,240
1,058
559
4,033
795
FY20
3Q
2Q
2.67
2.67
-13.3
-9.9
4,671 4,468
3.6
0.4
866
869
327
325
1,251 1,150
1,021 1,039
655
603
4,119 3,985
552
483
4Q
2.65
-21
4,352
-7
681
292
1,275
1,090
758
4,097
255
1Q
1.43
-53.1
5,301
9.8
1,097
525
1,079
954
556
4,211
1,090
FY21
3Q
2Q
2.11
2.38
-21.0
-10.8
5,077 4,881
8.7
9.3
924
747
350
333
1,102 1,254
1,023 1,104
564
539
3,963 3,976
1,114
905
FY20
4QE
2.68
1
4,775
10
815
299
1,251
1,082
626
4,073
703
11.02
-11.4
4,589
1.4
818
318
1,230
1,052
641
4,058
531
FY21E
8.60
-22.0
4,966
8.2
870
358
1,187
1,052
575
4,042
924
FY21
3QE
2.39
-10.0
4,928
10.0
830
322
1,182
1,040
560
3,934
993
(INR m)
FY21 Var.
3QE (%)
2.39
-1
-10.0
4,928
-1
10.0
-2.9
11,797
-2
-1.0
2,378
-10
20.2
615
830 -17
50
983
0
983
-10
246
25.0
738
-16
738
-16
-1,187.7
6.3
1Q
3.04
-1
4,828
9.1
2.8
14,688
7.9
2,420
16.5
599
799
32
1,054
0
1,054
331
31.5
722
706
235.8
4.8
FY20
3Q
2Q
2.67
2.67
-13
-10
4,671
4,468
3.6
0.4
-3.3
-4.3
12,457 11,911
-10.2
-9.5
1,472
1,287
11.8
10.8
613
615
816
806
32
33
75
-101
0
0
75
-101
34
-48
44.8
46.9
41
-54
50
-68
250.0 -316.6
0.4
-0.6
4Q
2.65
-21
4,352
-7.3
-2.6
11,519
-26.3
675
5.9
642
924
180
-711
1,000
-1,711
-600
35.1
-1,111
-476
-208.6
-4.1
1Q
1.43
-53
5,301
9.8
21.8
7,570
-48.5
1,557
20.6
600
730
33
261
0
261
91
34.9
170
170
-76.0
2.2
FY21
3Q
2Q
2.11
2.38
-21
-11
5,077
4,881
8.7
9.3
-4.2
-3.9
10,697 11,603
-14.1
-2.6
2,347
2,152
21.9
18.5
601
605
705
685
57
26
1,098
889
0
0
1,098
889
384
268
34.9
30.2
714
620
714
620
1,327.2 -1,014.7
6.7
5.3
4QE
2.68 11.02
1 -11.4
4,775 4,589
9.7
1.4
-2.2
12,815 50,575
11.3 -10.1
1,886 5,852
14.7
11.6
643 2,469
778 3,345
131
277
596
316
0 1,000
596
-684
132
(329)
22.1
48.1
465
-355
465
212
-197.6 -69.5
3.6
0.4
FY20
FY21E
8.60
-22.0
4,966
8.2
42,686
-15.6
7,942
18.6
2,449
2,897
247
2,843
2,843
967
34.0
1,877
1,877
785.5
4.4
Sales Dispatches (m ton)
YoY Change (%)
Net Realizations
YoY (%)
RM Cost
Employee Expenses
Power, Oil & Fuel
Freight cost
Other Expenses
Total Exp
EBITDA
(INR/t)
Var.
(%)
-1
-10
3
6
6
-4
1
-9
27 January 2021
2
 Motilal Oswal Financial Services
India Cements
Conference call highlights
Operational highlights
Capacity utilization stood at 50% in 9MFY21 v/s 45%/35% in 1HFY21/1QFY21.
Sales volumes stood at 2.38mt v/s 2.67mt in 3QFY20.
In 3QFY21, the company sold 120kt/183kt of clinker/cement in East.
Revenue for shipping/windmill/RMC was INR73m/INR19m/INR276m, and
EBITDA stood at INR45m/INR19m/INR35m.
The trade sales mix stood at 51%, down from 56%/75% in 2QFY21/1QFY21.
Net plant realization was down 5% QoQ (up 11% YoY) on account of a lower
trade sales mix and higher sales in East.
Cost insights
Fixed cost is expected to sustain at INR1.5b per quarter, against INR1.95b per
quarter in FY20 – led by various fixed cost and variable cost reduction measures.
The company’s low-cost petcoke inventory would last up to Feb’21; thus,
4QFY21 would witness a marginal impact of rising petcoke prices, while 1QFY22
would see the full impact.
Freight cost was up on account of an increase in lead distance – as company the
sold higher volumes in East.
Fuel cost per calorie was up to INR1.32 in 3QFY21 from INR1.27 in 2QFY21.
Demand and pricing outlook
North and Central continue to witness strong demand and pricing, while West
has started catching up. Demand in East is growing at >10%, but pricing has
remained weaker on account of higher competitive intensity.
Demand in South has started picking up, while pricing has remained stable.
Although the region has an excess capacity overhang, this has been mitigated by
cement and clinker exports to East.
Higher realization, strong demand, and the scarcity of clinker and limestone in
East have led to increased clinker and cement imports to the region. This is in
turn expected to improve pricing in the region.
In 3QFY21, South witnessed stable pricing on a sequential basis; this is expected
to improve further in 4QFY21, led by strong rural and IHB demand – which
would gain further momentum on the back of a strong monsoon.
The Andhra Pradesh government consumes 500kt of cement per month, while
government demand in Telangana has remained tepid.
Debt and capex
Gross debt stands at INR32.0b, down from INR35.0b in Mar’20.
INR1.50b/INR5.0b worth of repayments is scheduled for 4QFY21/FY22.
Cost of debt stands at 8.39% p.a. v/s 9.18% p.a. in FY20.
Capex incurred in 9MFY21 stood at INR700m. The company has guided for capex
of INR1.50b in FY22, including a part of an INR1.0b outlay on 10MW WHRS at
Chilamkur.
The company is yet to take a call on capex for Satna and is focused on improving
utilization at existing capacities.
27 January 2021
3
 Motilal Oswal Financial Services
India Cements
Other highlights
The company has a captive power generation capacity of 170MW, including
120MW of thermal power, 5MW of wind power, 26MW of gas-based power,
and 8.5MW of WHRS (at Vishnupuram).
The Railways offer 15% concession on freight for the transfer of clinker from
South to East. The industry has petitioned to extend the benefits for the transfer
of cement.
Key exhibits
Exhibit 1: Volumes down 11% YoY, while realizations up 9% YoY
Realizations (INR/ton)
2.9
2.7
2.7
2.7
3.1
3.1
3.1
3.0
Volume (m ton)
3.3
3.0
2.7
2.7
2.6
2.1
1.4
2.4
Exhibit 2: Margins improve 7.75pp YoY
EBITDA (INR m)
EBITDA (%)
Exhibit 3: EBITDA/t (INR/t) up 88% YoY / down 19% QoQ
EBITDA (INR/Ton)
Source: Company, MOFSL
Source: Company, MOFSL
YoY (%)
9.3%
-14.0%
2.3%
9.0%
6.3%
-10.6%
-0.2%
87.6%
2QFY21
5,077
924
350
1,102
1023
564
3,963
1,114
QoQ (%)
-3.9%
-19.1%
-5.0%
13.8%
7.9%
-4.5%
0.3%
-18.7%
Exhibit 4: Key operating indicators (incl. other businesses)
INR/Ton
Net realization
Expenditure
RM Cost
Staff Cost
Energy Cost
Selling Exp.
Other Exp.
Total Exp.
EBITDA
3QFY21
4,881
747
333
1,254
1,104
539
3,976
905
3QFY20
4,468
869
325
1,150
1,039
603
3,985
483
27 January 2021
4
 Motilal Oswal Financial Services
India Cements
Valuation and view
With ~80% of its capacity in South, ICEM has good brand recall in the region.
Also, it is one of the most leveraged plays on price recovery in South. We note
that for every INR10/t price hike, EPS increases by ~5% for ICEM.
We expect ICEM’s market share loss in South to continue as key competitor
Ramco’s new capacities would be commissioned in three months.
The planned capacity expansion in the Satna cluster provides option value as it
would diversify the market mix in favor of the stronger market, i.e., Central.
We expect ICEM’s net debt to stay elevated at INR31b in FY22, implying net
debt/EBITDA of 4.3x, which remains a concern on the stock.
ICEM trades at 11.3x FY22E EV/EBITDA and USD69/t of EV/capacity. We value
the stock at 10x Sep’22 EV/EBITDA to arrive at Target Price of INR160. Maintain
Neutral.
27 January 2021
5
 Motilal Oswal Financial Services
India Cements
Story in charts
Exhibit 5: Capacity utilization to improve
Capacity (mt)
Despatch (mt)
78
65
70
62
70
69
54
6,648 7,754 8,610 6,928 6,379 5,852 7,942 7,346 8,220
FY15 FY16 FY17 FY18 FY19 FY20 FY21E FY22E FY23E
Source: Company, MOFSL
FY15
FY16
FY17
FY18
FY19
FY20 FY21E FY22E FY23E
Source: Company, MOFSL
65
Utilization (%)
15.0
71
16.1
Exhibit 6: EBITDA and margin trend
EBITDA (INR mn)
17.0
13.4
Margin (%)
18.6
11.3 11.6
14.7 14.8
Exhibit 7: Net debt profile
Net debt (INR b)
Net Debt/EBITDA
Exhibit 8: RoE/RoIC profile
6.0
5.7
4.8
4.7
RoE (%)
4.4
3.2
3.4
1.9
2.0
0.4
1.3
RoIC (%)
3.9
4.3
3.6
3.8
2.8
5.4
4.1
2.6
4.1
3.4
4.5
5.3
4.1 4.3
3.6
3.1
3.4
33
36
36
31
29
31
34
35
33
31
29
0.3
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 9: ICEM’s EV/EBITDA trend
EV/EBITDA(x)
20
15
10
5
0
Peak(x)
Avg(x)
Min(x)
Exhibit 10: ICEM EV/ton trend
120
90
60
30
0
EV/ton (US$)
Max
Avg
Min
Source: MOFSL, Company
Source: MOFSL, Company
27 January 2021
6
 Motilal Oswal Financial Services
India Cements
Financials and valuations
Standalone Income Statement
Y/E March
Net Sales
Change (%)
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income - Rec.
PBT bef. EO Exp.
EO Expense/(Income)
PBT after EO Exp.
Current Tax
Deferred Tax
Tax Rate (%)
Reported PAT
PAT Adj for EO items
Change (%)
Margin (%)
2016
48,114
8.8
7,754
16.1
2,195
5,560
3,825
221
1,956
32
1,924
625
0
32.5
1,299
1,321
1,024.8
2.7
2016
3,082
46,728
49,809
5,719
21,331
10,218
31,549
87,077
74,536
2,712
71,824
926
5,507
25,364
5,994
5,359
67
13,945
0
16,544
10,367
4,569
1,609
8,820
87,077
2017
50,795
5.6
8,610
17.0
2,571
6,040
3,605
165
2,600
0
2,600
867
0
33.3
1,734
1,734
31.3
3.4
2017
3,082
48,018
51,099
6,556
23,797
5,416
29,213
86,868
75,015
5,286
69,729
1,278
6,190
29,256
7,450
5,089
68
16,649
0
19,584
13,180
4,796
1,608
9,671
86,868
2018
51,692
1.8
6,928
13.4
2,559
4,369
3,402
194
1,161
0
1,161
179
-24
13.3
1,006
1,006
-42.0
1.9
2018
3,082
48,922
52,003
6,532
28,180
3,049
31,229
89,764
75,794
7,831
67,963
1,712
5,884
31,700
6,723
6,295
84
18,599
0
17,495
11,759
4,307
1,428
14,205
89,764
2019
56,280
8.9
6,379
11.3
2,513
3,866
3,242
310
934
0
934
325
-85
25.7
694
694
-31.0
1.2
2019
3,099
49,298
52,397
6,308
26,433
7,237
33,670
92,375
77,438
10,308
67,130
1,770
6,946
35,203
8,232
7,290
67
19,614
0
18,675
13,163
4,106
1,405
16,528
92,375
2020
50,575
-10.1
5,852
11.6
2,469
3,384
3,345
277
316
1,000
-684
69
-398
48.1
-355
212
-69.5
0.4
2020
3,099
51,050
54,149
5,910
23,750
11,581
35,331
95,391
81,024
12,766
68,258
1,958
7,369
36,939
8,263
7,163
66
21,447
0
19,134
13,342
4,566
1,225
17,805
95,391
2021E
42,686
-15.6
7,942
18.6
2,449
5,493
2,897
247
2,843
0
2,843
967
0
34.0
1,877
1,877
785.5
4.4
2021E
3,099
52,703
55,802
5,910
23,750
9,081
32,831
94,543
82,224
15,215
67,009
1,958
7,369
35,220
7,017
6,432
324
21,447
0
17,013
12,279
3,508
1,225
18,207
94,543
2022E
50,006
17.1
7,346
14.7
2,489
4,856
2,791
260
2,325
0
2,325
744
0
32.0
1,581
1,581
-15.7
3.2
2022E
3,099
53,973
57,073
5,910
23,750
9,081
32,831
95,814
83,724
17,704
66,020
1,958
7,369
38,406
7,535
6,850
1,573
22,447
0
17,940
13,015
3,699
1,225
20,466
95,814
(INR m)
2023E
55,613
11.2
8,220
14.8
2,534
5,686
2,791
261
3,156
0
3,156
947
0
30.0
2,209
2,209
39.7
4.0
2023E
3,099
55,560
58,661
5,910
23,750
9,081
32,831
97,403
85,224
20,238
64,986
1,958
7,369
42,902
8,380
7,618
3,456
23,447
0
19,814
14,475
4,114
1,225
23,088
97,403
Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Deferred Liabilities
Secured Loan
Unsecured Loan
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
Real Estate Projects WIP
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
(INR m)
27 January 2021
7
 Motilal Oswal Financial Services
India Cements
Financials and valuations
Ratios
Y/E March
Basic (INR)
Standalone EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
EV/Ton (US$)
Dividend Yield (%)
Return Ratios (%)
RoIC
RoE
RoCE
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Leverage Ratio (x)
Current Ratio
Debt/Equity
2016
4.3
11.4
161.6
0.0
0.0
2017
5.6
14.0
165.8
1.0
21.4
2018
3.3
11.6
168.8
0.8
29.5
50.8
14.3
1.0
1.6
11.9
69.10
0.5
4.8
3.1
5.2
0.6
45.5
36
1.5
0.6
2016
1,910
2,693
3,652
-55
767
8,966
204
9,169
-1,598
7,571
5
430
-1,162
0
3,463
-5,042
-2
-6,398
-7,979
28
39
67
4.7
3.4
5.1
0.6
53.5
32
1.5
0.6
2017
2,517
2,571
3,528
-637
112
8,090
30
8,121
-788
7,332
-683
-405
-1,876
0
16,880
-3,537
-370
-19,217
-6,243
1
67
68
4.4
2.0
4.8
0.6
47.5
43
1.8
0.6
2018
1,257
2,559
3,220
-384
-2,072
4,580
105
4,685
-1,902
2,783
344
-1,385
-2,942
0
9,583
-3,411
-371
-7,528
-1,727
16
68
84
2019
2.3
10.4
169.1
0.8
43.0
73.7
16.0
1.0
1.5
13.3
71.41
0.5
3.2
1.3
3.7
0.6
53.4
47
1.9
0.6
2019
853
2,513
3,074
-88
-3,069
3,283
-119
3,164
-1,712
1,452
-923
231
-2,404
18
5,424
-3,136
-336
-2,746
-776
-16
84
68
2020
0.7
8.6
174.7
0.6
-52.4
241.4
19.2
1.0
1.7
14.8
72.80
0.4
1.9
0.4
2.2
0.5
59.6
52
1.9
0.7
2020
282
2,469
3,050
-312
-1,269
4,220
-81
4,139
-1,365
2,774
-278
-1,759
-3,403
0
2,562
-3,000
-300
0
-738
-1
68
67
2021E
6.1
14.0
180.1
0.6
11.9
27.3
11.9
0.9
2.0
10.6
70.49
0.4
3.9
3.4
4.3
0.5
60.0
55
2.1
0.6
2021E
2,843
2,449
2,897
-967
-144
7,078
0
7,078
-1,200
5,878
0
0
-1,200
0
-2,500
-2,897
-224
0
-5,621
257
67
324
2022E
5.1
13.1
184.2
1.0
19.6
32.4
12.6
0.9
1.7
11.3
69.44
0.6
3.6
2.8
3.9
0.5
55.0
50
2.1
0.6
2022E
2,325
2,489
2,791
-744
-1,010
5,851
0
5,851
-1,500
4,351
0
0
-1,500
0
0
-2,791
-311
0
-3,102
1,250
324
1,573
2023E
7.2
15.3
189.3
2.0
28.1
23.2
10.9
0.9
1.5
9.8
67.86
1.2
4.3
3.8
4.6
0.6
55.0
50
2.2
0.6
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
(INR m)
2023E
3,156
2,534
2,791
-947
-739
6,795
0
6,795
-1,500
5,295
0
0
-1,500
0
0
-2,791
-622
0
-3,412
1,883
1,573
3,456
27 January 2021
8
 Motilal Oswal Financial Services
India Cements
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
*In case the recommendation given by the Research
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
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products.
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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
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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
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
Analyst is inconsistent with the investment rating legend for a continuous
period of 30 days, the Research Analyst shall within
27 January 2021
9
 Motilal Oswal Financial Services
India Cements
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)
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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
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considered in above disclosures.
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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
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Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
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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,
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* 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.
-
27 January 2021
10