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)
Financials & Valuations (INR b)
Y/E Mar
2020 2021E
Sales
129.2 134.0
EBITDA
27.3
25.6
PAT
17.9
16.7
EBITDA (%)
21.1
19.1
EPS (INR)
7.4
6.8
EPS Gr. (%)
(6.9)
(7.2)
BV/Sh. (INR)
40.7
44.8
Ratios
Net D/E
(0.2)
(0.2)
RoE (%)
18.1
15.2
RoCE (%)
18.9
16.0
Payout (%)
42.1
40.0
Valuations
P/E (x)
17.7
19.0
P/BV (x)
3.2
2.9
EV/EBITDA (x)
11.0
11.6
Div Yield (%)
2.4
2.1
FCF Yield (%)
5.7
3.4
CMP: INR130
TP: INR150 (+16%)
Bharat Electronics
31 January 2021
3QFY21 Results Update | Sector: Capital Goods
Buy
Execution disappoints, but should catch up in 4Q
BHE IN
2,437
317.5 / 4.4
141 / 56
16/12/17
1506
EBITDA margin remains strong at 19%+
2022E
161.4
31.0
20.9
19.2
8.6
25.4
50.0
(0.2)
17.1
18.1
40.0
15.2
2.6
9.5
2.6
3.4
Bharat Electronics (BHE)’s 3QFY21 earnings were 21% below our est., with
revenue coming in 13% lower. The revenue miss was largely due to muted
execution (billing spillover likely in 4Q). EBITDA was up 24% YoY (13% below
our est.). The EBITDA margin expansion was largely attributable to the beat
on gross margins (lower RM cost). Adj. PAT grew a strong 22% YoY to
INR2.6b, but fell short of our expectation (21% miss) – as a follow-through of
the revenue miss.
Margins depend on the sales mix between deliverables and hence they tend
to be volatile on a quarterly basis. BHE’s current order book is strong at
INR548b, with an OB/rev ratio of 4.2x.
Revenue/EBITDA for 9MFY21 stood flat YoY, with PAT coming in 6% lower.
We trim our FY21E EPS by 4%, but maintain our FY22/FY23E earnings
estimate, given the company’s strong order book position and execution
track record. Our TP remains unchanged at INR150 (16x FY23E EPS, on par
with its long-term trading multiple). Maintain
Buy.
Revenue was broadly flat YoY at INR22.9b and 13% below our expectation.
EBITDA was up 24% YoY to INR4.4b and 13% below our expectation – as a
follow-through of the revenue miss.
The EBITDA margin came in at 19.2% (+360bp YoY).
Adj. PAT grew 22% YoY to INR2.6b and was 21% below our expectation.
The order book stood at INR548b, with an OB/rev ratio of 4.2x, providing
strong revenue visibility.
We estimate YTD order inflows at ~INR100b. Key orders won in the current
year include ventilators, advanced torpedo defense systems, smart city
projects, advanced composite communication systems, electronic warfare
systems, naval fire control systems, and 3D surveillance radars. We believe
the company is well-placed to meet its FY21E order inflow target of INR140–
150b, implying INR40–50b of order inflows in 4QFY21. Our FY21E order
inflow estimate stands at INR145b, at the mid-point of the guidance.
We forecast a revenue/EBITDA/PAT CAGR of 14%/15%/17% over FY21–23E.
We have built in a sufficient margin cushion as we assume an EBITDA margin
of 19.2%/19.3% by FY22E/FY23E (v/s 21.1% reported in FY20). Our TP
remains unchanged at INR150 (16x FY23E EPS, on par with its long-term
trading multiple). At CMP, the stock trades at FY22E/FY23E P/E of just
15x/14x – despite having RoE/RoCE of ~17%/18%, dividend yield of ~3%, and
FCF yield of 3.5–6%. Maintain
Buy.
Working capital deterioration is the key
risk to our rating.
Execution-led earnings disappointment; margins remain strong
Order book position remains strong
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Dec-20 Sep-20 Dec-19
51.1
51.1
55.3
31.3
31.6
25.3
10.3
9.6
12.2
7.3
7.7
7.2
FII Includes depository receipts
Valuation and view
Nilesh Bhaiya – Research Analyst
(Nilesh.Bhaiya@MotilalOswal.com)
Pratik Singh – Research Analyst
(Pratik.Singh@MotilalOswal.com)
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
Bharat Electronics
Quarterly Performance
Y/E March
Sales
Change (%)
EBITDA
Change (%)
As of % Sales
Depreciation
Interest
Other Income
PBT
Tax
Effective Tax Rate (%)
Reported PAT
Change (%)
Adj PAT
Change (%)
1Q
21,015
(0.0)
3,481
12.1
16.6
828
3
254
2,904
857
29.5
2,047
13.9
2,047
13.9
FY20
2Q
3Q
27,427 22,710
(18.9) (16.4)
5,447 3,547
(36.2) (53.8)
19.9
15.6
857
861
12
1
150
332
4,729 3,017
1,334
866
28.2
28.7
3,395 2,151
(40.6) (57.6)
3,395 2,151
(40.6) (57.6)
4Q
1Q
58,058 16,706
49.5 (20.5)
14,826 1,467
59.6 (57.9)
25.5
8.8
950
888
16
1
283
184
14,142
762
3,797
221
26.8
29.0
10,345
541
54.7 (73.6)
10,345
541
54.7 (73.6)
FY21E
FY20
FY21E
2Q
3Q
4Q
31,887 22,962 62,476 1,29,211 1,34,031
16.3
1.1
7.6
6.9
3.7
6,235 4,404 13,454 27,301 25,560
14.5
24.1
(9.2)
(4.6)
(6.4)
19.6
19.2
21.5
21.1
19.1
914
945 1,021
3,496
3,768
3
2
27
33
33
274
231
361
1,019
1,050
5,592 3,688 12,767 24,792 22,810
1,622 1,070 3,246
6,853
6,159
29.0
29.0
25.4
27.6
27.0
3,971 2,619 9,521 17,938 16,651
17.0
21.7
(8.0)
(6.9)
(7.2)
3,971 2,619 9,521 17,938 16,651
17.0
21.7
(8.0)
(6.9)
(7.2)
MOSL
3QE
26,300
15.8
5,089
43.5
19.3
950
9
300
4,430
1,116
25.2
3,314
54.1
3,314
54.1
(INR m)
Var
(%)
(13)
(13)
(17)
(21)
(21)
Exhibit 1: Revenue stood flat YoY in 3QFY21
Revenue (INR b)
Growth (% YoY)
Exhibit 2: EBITDA margin declined 30bp YoY to 19.6%
EBIDTA Margins (%)
Source: MOFSL, Company
Source: MOFSL, Company
31 January 2021
2
 Motilal Oswal Financial Services
Bharat Electronics
Story in charts
Exhibit 3: Strong order book position with healthy OB/rev
Order backlog (INR b)
4.5
4.9
4.0
4.4
4.1
4.0
OB/Rev (x)
171
163
100
Exhibit 4: Robust order inflow trend
Order inflow (INR b)
234
3.3
3.0
132
145
152
168
320
402
401
518
520
532
525
520
Exhibit 5: Estimate revenue CAGR of 14% over FY21–23E
Revenue (INR b)
17.5
7.1
73
86
103
121
19.9
17.1
6.9
129
Growth (%)
20.4
8.5
3.7
134
161
175
Exhibit 6: Factor in stable margins of ~19% over FY21–23E
EBITDA (INR b)
18.7
20.5
23.7
19.4
21.1
EBITDA margin (%)
19.1
19.2
19.3
13.7
17.6
20.0
28.6
27.3
25.6
31.0
33.9
Exhibit 7: Net working capital days trend
NWC (days)
117
118
97
106
110
110
Exhibit 8: BHE enjoys superior return ratios
RoE (%)
22.9
20.6
18.2
15.5
18.8
14.5
18.0
21.2
18.9
16.0
18.1
15.2
17.1
18.1
17.8
16.9
RoCE (%)
36
-18
FY16
FY17
FY18
FY19
FY20
FY21E FY22E FY23E
Exhibit 9: PAT growth expected at 17% CAGR over FY21–23E
PAT (INR b)
19
13
12.1
15
14
37.7
9.7
(9.6)
(7.2)
(6.9)
18
Growth (%)
21
17
25.4
23
Exhibit 10: BHE trades at one-year forward P/E of 16.8x,
above historical average of ~16x
35.0
27.0
19.0
11.0
3.0
15.7
10.9
7.1
P/E (x)
Min (x)
Avg (x)
+1SD
20.5
Max (x)
-1SD
28.0
16.8
18.4
Source: MOFSL, Company
Source: MOFSL
31 January 2021
3
 Motilal Oswal Financial Services
Bharat Electronics
Valuation and view
Best play in India’s Defense industry:
BHE is well-positioned to benefit from
rising defense expenditure, supported by (a) a strong manufacturing base and
execution track record, (b) its relationship with defense and government
agencies, (c) strategic collaboration with foreign technology partners for new
product development, (d) in-house R&D capabilities (R&D spend at > 9.0% of
revenues), and (e) an increased focus on exports to friendly countries.
Strong order book position provides robust revenue visibility:
BHE had a robust
order backlog of INR548b as of 9MFY21, translating to an OB/rev ratio of 4.2x.
This offers the company superior revenue visibility.
Maintain estimates:
We forecast a revenue/EBITDA/PAT CAGR of
14%/15%/17% over FY21–23E. We have built in a sufficient margin cushion as
we assume an EBITDA margin of 19.2%/19.3% by FY22E/FY23E (v/s 21.1%
reported in FY20).
Maintain Buy, with TP of INR150:
Given BHE’s current order backlog and
revenue visibility, we maintain our estimates with TP of INR150 (16x FY23E EPS,
on par with its long-term trading multiple). Maintain
Buy.
31 January 2021
4
 Motilal Oswal Financial Services
Bharat Electronics
Financials and valuations
Income Statement
Y/E March
Total Revenues
Change (%)
Raw Materials
Staff Cost
Other Expenses
EBITDA
% of Total Revenues
Depreciation
Interest
Other income
PBT
Tax
Rate (%)
Adjusted PAT
Reported PAT
Change (%)
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deferred Tax Liability
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventory
Debtors
Cash & Bank Balance
Loans & Advances
Other Assets
Current Liab. & Prov.
Current Liabilities
Provisions
Net Current Assets
Application of Funds
2018
1,03,223
19.9
60,257
17,723
5,246
19,997
19.4
2,510
13
2,004
19,478
5,486
28.2
13,992
13,992
-9.6
2018
2,437
75,512
77,949
334
-4,312
73,971
26,572
6,127
20,445
3,955
9,032
1,47,167
47,755
57,046
7,387
730
34,249
1,06,627
94,023
12,604
40,540
73,971
2019
1,20,846
17.1
67,002
18,791
6,433
28,621
23.7
3,162
122
1,695
27,032
7,759
28.7
19,273
19,273
37.7
2019
2,437
88,393
90,830
0
-4,712
86,118
34,595
9,288
25,307
2,751
10,193
1,61,672
44,548
53,692
8,840
729
53,864
1,13,804
1,00,008
13,796
47,868
86,118
2020
1,29,211
6.9
74,570
20,575
6,765
27,301
21.1
3,496
33
1,019
24,792
6,853
27.6
17,938
17,938
-6.9
2020
2,437
96,824
99,261
0
-4,974
94,287
42,815
12,784
30,030
1,994
12,233
1,89,879
39,628
40,055
15,562
400
94,235
1,39,850
1,25,091
14,759
50,029
94,287
2021E
1,34,031
3.7
80,419
21,097
6,956
25,560
19.1
3,768
33
1,050
22,810
6,159
27.0
16,651
16,651
-7.2
2021E
2,437
1,06,815
1,09,251
0
-4,974
1,04,277
47,815
16,552
31,263
1,994
12,233
2,00,586
41,106
41,549
19,766
415
97,750
1,41,798
1,26,489
15,310
58,787
1,04,277
2022E
1,61,370
20.4
97,629
24,729
8,039
30,974
19.2
4,542
33
1,500
27,899
7,022
25.2
20,876
20,876
25.4
2022E
2,437
1,19,340
1,21,777
0
-4,974
1,16,803
52,815
21,094
31,720
1,994
12,233
2,32,734
49,490
50,024
22,194
499
1,10,527
1,61,879
1,43,446
18,433
70,855
1,16,803
(INR m)
2023E
1,75,111
8.5
1,05,942
26,734
8,583
33,852
19.3
5,017
33
1,800
30,602
7,702
25.2
22,899
22,899
9.7
(INR m)
2023E
2,437
1,33,080
1,35,517
0
-4,974
1,30,543
57,815
26,112
31,703
1,994
12,233
2,50,681
53,704
54,284
31,807
542
1,10,344
1,66,069
1,46,066
20,002
84,612
1,30,543
31 January 2021
5
 Motilal Oswal Financial Services
Bharat Electronics
Financials and valuations
Ratios
Y/E March
Basic (INR)
Adj EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (Days)
Inventory (Days)
Asset Turnover (x)
Leverage Ratio
Net Debt/Equity (x)
Cash Flow Statement
Y/E March
PBT before EO Items
Depreciation
Interest & other
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from Investments
(Inc)/Dec in Networth
(Inc)/Dec in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
2018
5.7
6.8
32.0
2.0
35
22.6
19.2
15.5
3.1
4.1
1.5
18.0
18.2
32.4
202
169
3.8
(0.1)
2018
19,478
2,510
-1,434
6,512
-21,929
-7,885
-7,779
-15,665
-2,844
-10,623
-3,723
167
259
8,192
-12,006
-30,515
37,902
7,387
2019
7.9
9.2
37.3
2.1
27
16.4
14.1
10.8
2.6
3.5
1.6
21.2
22.9
30.8
162
135
3.4
(0.1)
2019
27,032
3,162
-69
7,669
-7,796
14,660
-7,054
7,606
132
-6,922
-333
0
489
5,463
-6,285
1,453
7,387
8,840
2020
7.4
8.8
40.7
3.1
42
17.7
14.8
11.0
2.4
3.2
2.4
18.1
18.9
26.7
113
112
2.9
(0.2)
2020
24,792
3,496
-292
5,684
3,013
25,325
-7,264
18,062
-731
-7,995
-250
-13
552
9,793
-10,608
6,722
8,840
15,562
2021E
6.8
8.4
44.8
2.7
40
19.0
15.5
11.6
2.2
2.9
2.1
15.2
16.0
23.6
113
112
2.8
(0.2)
2021E
22,810
3,768
33
6,159
-4,555
15,897
-5,000
10,897
0
-5,000
0
0
33
6,660
-6,693
4,204
15,562
19,766
2022E
8.6
10.4
50.0
3.4
40
15.2
12.5
9.5
1.8
2.6
2.6
17.1
18.1
26.3
113
112
3.0
(0.2)
2022E
27,899
4,542
33
7,022
-9,640
15,811
-5,000
10,811
0
-5,000
0
0
33
8,351
-8,383
2,428
19,766
22,194
2023E
9.4
11.5
55.6
3.8
40
13.8
11.4
8.4
1.6
2.3
2.9
16.9
17.8
26.2
113
112
3.0
(0.2)
(INR m)
2023E
30,602
5,017
33
7,702
-4,144
23,806
-5,000
18,806
0
-5,000
0
0
33
9,160
-9,192
9,613
22,194
31,807
31 January 2021
6
 Motilal Oswal Financial Services
Bharat Electronics
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
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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
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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
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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
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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 associates of MOFSL may have:
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financial interest in the subject company
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actual/beneficial ownership of 1% or more securities in the subject company
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received compensation/other benefits from the subject company in the past 12 months
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 Motilal Oswal Financial Services
Bharat Electronics
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.
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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)
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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
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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