5 February 2021
3QFY21 Results Update | Sector: Utilities
NTPC
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)
NTPC IN
9,895
980.1 / 13.2
119 / 74
-5/-19/-36
2611
In-line numbers, partly aided by higher other income
CMP: INR99
TP: INR139 (+40%)
Buy
Financials & Valuations (INR b)
Y/E MARCH
2020 2021E
Sales
1,143 1,116
EBITDA
364.1 371.3
Adj. PAT
136.6 149.0
EBITDA Margin (%)
31.8 33.3
Cons. Adj. EPS (INR)
13.8 15.1
EPS Gr. (%)
19.2
9.1
BV/Sh. (INR)
120.1 126.9
Ratios
Net D:E
1.7
1.6
RoE (%)
11.9 12.2
RoCE (%)
6.5
7.3
Payout (%)
22.8 39.8
Valuations
P/E (x)
7.2
6.6
P/BV (x)
0.8
0.8
EV/EBITDA(x)
8.1
8.0
Div. Yield (%)
3.2
6.1
FCF Yield (%)
6.7 13.2
Shareholding pattern (%)
As On
Dec-20 Sep-20
Promoter
51.1
51.0
DII
33.6
35.0
FII
12.3
11.4
Others
3.0
2.6
FII Includes depository receipts
2022E
1,275
415.8
164.4
32.6
16.6
10.3
135.4
1.5
12.7
7.5
42.1
6.0
0.7
7.2
7.1
16.8
Steady growth led by capacity additions; valuations attractive
NTPC’s 3QFY21 results highlight steady growth in its regulated business,
partly aided by other income. S/A adj. PAT (excl. FC u/r) was up 16% YoY to
INR33.7b.
The co. has undertaken steps on the renewable front, with ~2GW of
renewable capacities expected to be commissioned in FY22. It has recently
been the lowest bidder in 1.4GW of renewable projects as well. With the
THDC and NEEPCO additions and a pickup in capitalization, we expect a 9%
earnings CAGR over FY20–23E. Maintain
Buy,
with TP of INR139 (DCF-
based).
Other income aids profitability
Adj. for one-offs, NTPC's S/A PAT (excl. FC u/r) was up 16% YoY to INR33.7b
(in-line), partly aided by higher-than-expected other income. Other income
rose 44% YoY to INR7.6b on the back of higher late-payment surcharge
(LPS) income.
LPS income stood at INR5.7b (v/s INR4.6b in the previous year) given the
increased profile of DISCOM overdues. However, the co. noted it has
lowered the LPS rate to 12% pa (v/s 18% pa earlier) for dues settled under
the
Atmanirbhar
scheme.
Profit from JVs was higher at INR2b, v/s INR0.8b in the previous year, led by
better availability at Meja.
PLF at coal-based plants was higher YoY at 64.3%. PLF incentives were also
higher YoY at INR760m (v/s INR90m).
Plant availability factors at coal-based plants rose YoY to 89.1% (v/s 88.3%
in the previous year) given better coal availability. Fixed Cost under-
recoveries (FC u/r) came in at ~INR700m (v/s recoveries of ~INR700m in the
previous year), led by under-recoveries at Kahalgaon.
The company commercialized 865MW in 3Q, led by the commercialization
of Lara (800MW).
NTPC has also approved an interim dividend of INR3/share.
Management commentary – overdues decline
Overdues decreased to INR167b in Dec and have declined further to
INR157b in Jan (v/s INR192b at the end of 2Q). The co. expects another
INR80b to flow in from tranche 2 of the Atmanirbhar scheme.
The FY21 commercialization target is set at 5.1GW, with a further 6GW in
FY22. The FY22 target includes the commissioning of 1.8GW of solar.
The co expects the issue at Kahalgaon to be resolved by end-March. It
expects overall FC u/r to come in at INR3.5–4b at the end of FY21. The co. is
also in touch with CERC to recover the INR0.8b impact due to high/low
demand season regulations.
Dec-19
54.1
30.6
12.8
2.5
;
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.
Aniket Mittal – Research Analyst
(Aniket.Mittal@MotilalOswal.com)
 Motilal Oswal Financial Services
NTPC
Valuations attractive; reiterate Buy
NTPC has undertaken steps on the renewable front and emerged as the lowest
bidder in 1.4GW of renewable projects as well. We expect capitalization to pick
up pace, and drive a regulated equity CAGR of 11% over FY20–23E and boost RoE
(+100bp accretion). Receivables, though, would remain the key monitorable; we
expect the situation to improve as power demand recovers and money from the
PFC-REC scheme flows through. The stock trades attractively at FY22E P/BV of
0.7x and dividend yield of ~7%. Maintain Buy, with DCF-based Target Price of
INR139/share.
Quarterly Performance (standalone) – INR b
Y/E March
Sales
Change (%)
EBITDA
Depreciation
Interest
Other income
Exceptional
PBT
Tax
PAT
Change (%)
Adj. PAT (excl. FC u/r)
Change (%)
1Q
247.0
8.0
69.6
20.5
15.7
3.3
0.0
36.7
10.7
26.0
0.6
27.1
-8.6
FY20
2Q
3Q
236.3 250.9
4.4
5.4
72.1
85.7
21.2
23.2
16.2
17.6
8.9
5.3
0.0
0.0
43.7
50.2
11.0
20.3
32.6
30.0
34.5
25.6
34.7
29.0
24.5
13.6
4Q
291.0
29.6
91.7
21.3
18.4
10.3
0.0
62.4
49.8
12.5
-71.2
33.0
3.9
1Q
242.6
-1.8
85.5
25.3
20.8
5.7
-8.0
37.0
12.3
24.7
-5.1
33.2
22.7
FY21
2Q
3Q
250.2 254.3
5.9
1.3
75.3
82.9
25.3
25.6
17.7
20.1
13.5
7.6
-5.6
0.0
40.1
44.8
5.1
11.7
35.0
33.2
7.4
10.7
41.6
33.7
19.7
16.1
FY20
4QE
291.2
0.1
79.9
26.7
22.5
4.7
0.0
35.3
4.2
31.1
148
30.2
-8.3
1,025
9.0
319.2
86.2
67.8
27.8
0.0
192.9
91.8
101.1
-13.9
123.7
7.8
FY21E
FY21 var.
3QE (%)
1,038
256.0
-1
1.3
2.0
323.5
84.6
-2
102.9
26.8
81.1
21.6
31.4
5.4
40
-13.6
0.0
157.3
41.7
7
33.3
10.1
124.0
31.6
5
22.6
5.5
138.7
32.0
5
12.1
10.4
Source: MOFSL, Company
Exhibit 1: Key Operating Parameters
Capacity
Installed
Commercial
Regulated Equity
Generation
Gross
Electricity sales
Availability
Coal
Gas
PLF
Coal
Gas
Fuel
Coal Received
o/w imported
% imported
Gas received
Per unit
Realization
Fuel cost
Fixed charge
1Q
GW
GW
INR b
b kWh
b kWh
%
%
%
%
mt
mt
%
mmscmd
INR/kWh
INR/kWh
INR/kWh
55.1
54.3
531.2
68
64
91.1
90.4
73.9
20.6
44.0
0.9
2.0
4.5
3.90
2.30
1.59
FY20
2Q
57.1
55.0
532.6
62
57
84.1
93.3
64.3
13.1
36.0
0.6
1.7
3.1
4.20
2.37
1.82
3Q
58.2
56.4
565.7
61
56
88.3
98.8
63.5
10.4
45.1
0.6
1.4
2.4
4.38
2.32
2.06
4Q
62.1
61.1
618.1
68
63
94.3
92.6
69.5
12.3
49.1
0.7
1.4
2.8
4.66
2.38
2.29
1Q
62.1
62.0
628.6
60
56
95.8
93.3
58.2
25.4
40.5
0.4
0.9
5.6
4.25
2.12
2.14
FY21
2Q
3Q
63.0
63.0
628.6
65
61
89.1
94.6
64.3
6.8
45.8
0.3
0.6
1.5
62.9
62.1
628.6
68
63
91.8
90.2
64.3
26.2
38.5
0.2
0.4
5.7
3.99
4.15
2.18
2.20
1.81
1.95
Source: MOFSL, Company
5 February 2021
2
 Motilal Oswal Financial Services
NTPC
Exhibit 2: NTPC Valuation
Rf. Nominal risk free rate
B. Beta
Km. Equity Risk premium
Cost of equity (Rf+Km x B)
DCFE
A. FY22-24
Case 1
(%)
(%)
(%)
INR m
248,682
Base
6.50
0.85
5.00
10.75
INR/sh.
25
(%)
(%)
(%)
INR m
214,065
7.00
0.85
5.00
11.25
INR/sh.
22
(%)
(%)
(%)
INR m
212,113
Case 2
7.50
0.85
5.00
11.75
INR/sh.
21
B. FY25-32
C. Terminal Value
Target price (A+B+C)
RoE
(%)
12.00
11.50
Re-Invst
(%)
10
10
Growth
(%)
1.2
1.2
691,347
549,021
70
55
150
665,704
492,161
67
50
139
641,204
442,390
65
45
131
Source: MOFSL, Company
Analyst meet takeaways
Overdues decreased to INR167b in Dec and have declined further to INR157b in
Jan (v/s INR192b at the end of 2Q). The co. expects another INR80b to flow in
from tranche 2 of the Atmanirbhar scheme.
The FY21 commercialization target is set at 5.1GW, with a further 6GW in FY22.
The FY22 target includes the commissioning of 1.8GW of solar.
The co expects the issue at Kahalgaon to be resolved by end-March. It expects
overall FC u/r to come in at INR3.5–4b at the end of FY21. The co. is also in
touch with CERC to recover the INR0.8b impact due to high/low demand season
regulations.
Coal production had been impacted due to a strike at the Pakri Barwadih mine
during the current financial year.
The co. is looking to install 2.64GW in Maharashtra and 4.75GW in Gujarat;
however, talks are in the initial stages. Furthermore, 735MW of projects could
be developed on EPC mode.
The co. at the parent level had capex of INR124b in 9MFY21, with another
INR89b capex by its group companies. At the parent level, the co. expects capex
of INR210b in FY21.
Valuation and view
13GW of thermal projects provide growth visibility
NTPC has ~13GW of thermal projects under execution, which provide visibility
for growth in regulated equity over the next three years.
While disruptions due to COVID would impact commercialization plans in FY21,
we expect them to come through over the next 12–18 months. Notably,
upcoming capacities are incremental units of plants commercialized over FY19–
20, and most resources have been mobilized.
We expect ~10.5GW of capacities to commercialize over FY21–23.
5 February 2021
3
 Motilal Oswal Financial Services
NTPC
Making in-roads into Renewable
NTPC has recently emerged as the lowest bidder for 1.4GW of projects, thereby
highlighting its focus on the Renewable sector.
Furthermore, 2.3GW of renewable projects (largely under the CPSU scheme) are
under construction and should get commissioned in FY22/FY23.
Higher coal availability bodes well
Subdued power demand, coupled with a production ramp-up at Coal India’s
mines, has led to an increase in coal stocks at power plants. This bodes well for
NTPC and would aid in reducing coal-related FC u/r.
For FY20, FC u/r stood at ~INR2.5b (v/s INR8b in FY19). Machine-related u/r may
occur from time to time, as would be the case in FY21, with Kahalgaon being
impacted due to a breach at the ash dyke embankment. However, on an overall
basis, the co. is better placed to manage fuel-related u/r given higher coal
availability.
Receivables may hold the key
Given the precarious financial position of public DISCOMs in the country and the
impact on their revenues during COVID, NTPC’s receivables from DISCOMs have
increased sharply (1H: ~INR270b). While NTPC is compensated for the stretch in
receivables, the ballooning of dues is a risk.
However, with power demand recovering and money from the
Atmanirbhar
scheme flowing through, we believe the receivables situation should improve.
RoE to improve as capitalization outpaces capex
With the pickup in capitalization, we expect a regulated equity CAGR of ~11%
over FY20–23E. We expect capitalization to outpace capex, which, along with
lower u/r, would improve RoE by ~100bp to ~13% by FY23. The stock trades
attractively at FY22E P/BV of 0.7x and dividend yield of 7%. Maintain Buy, with
DCF-based Target Price of INR139/share.
5 February 2021
4
 Motilal Oswal Financial Services
NTPC
Story in charts
Exhibit 3: New regulations lend visibility to earnings…
Normative RoEs
4.1
2.9
1.9
1.5
Exhibit 4: …with pace of commercialization picking up
NTPC - Net Commercial adds (GW)
5.3
4.7
15.5%
14.0%
15.5%
15.5%
FY05-09
FY10-14
FY15-19
FY20-24
FY17
FY18
FY19
FY20
FY21E
FY22E
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 5: While fixed cost u/r declines…
14.3
NTPC - FC u/r (INR b)
Exhibit 6: …overall earnings would witness 9% CAGR
Consol Adj. PAT (INR b)
9% CAGR
137
115
4.0
88
149
177
164
8.0
3.0
2.5
2.5
FY17
FY18
FY19
FY20
FY21E
FY22E
FY18
FY19
FY20
FY21E
FY22E
FY23E
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 7: Capitalization would outpace capex…
INR b
Capex
Capitalization
358
218
534
Exhibit 8: …leading to improvement in RoE
RoE (%)
11.3
10.7
11.9
12.2
12.7
12.9
314
194
95
189
83
192
232
243
188
198
182
285
294
10.0
10.6
8.7
181
256
233
127
FY15
FY16
FY17
FY18
FY19 FY20E FY21E FY22E FY23E
Source: MOFSL, Company
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21EFY22EFY23E
Source: MOFSL, Company
Exhibit 9: Dividend yield remains attractive
DPS
5.4
3.8
3.9
3.6
3.6
5.4
3.2
3.2
Div. Yield (%)
6.0
6.1
7.0
7.1
Exhibit 10: Stock trades at lower end of historical valuation
P/B (x)
3.0
2.0
1.0
0.0
0.6
Min (x)
Avg (x)
+1SD
1.6
1.0
Max (x)
-1SD
2.2
1.3
0.7
Source: MOFSL, Company
Source: MOFSL, Bloomberg
5 February 2021
5
 Motilal Oswal Financial Services
NTPC
Financials and valuations
Income Statement
Y/E March
Net Sales
Change (%)
Expenditure
EBITDA
Margin (%)
Depreciation
EBIT
Interest
Other Income
XO reported
Profit before Tax
Tax
Tax Rate (%)
Share of JVs
Minority int
PAT
Prior period
Adj. PAT
Change (%)
2016
727,055
-9.8
547,486
179,569
24.7
52,240
127,329
33,137
10,576
0
104,768
-1,628
-1.6
1,412
-204
108,012
-11,055
96,957
14.9
2016
82,455
809,511
891,965
8,928
1,120,194
14,094
2,035,181
1,632,140
587,180
1,044,959
815,497
148
543,886
79,592
101,740
57,370
202,075
103,110
369,310
68,266
301,044
174,577
2,035,181
2017
817,171
12.4
598,870
218,300
26.7
60,099
158,201
36,511
9,668
0
131,358
30,467
23.2
6,247
-57
107,196
-8,479
98,717
1.8
2017
82,455
895,926
978,380
8,033
1,137,551
14,849
2,138,812
1,170,879
125,562
1,045,317
868,957
78,023
492,677
65,861
89,995
33,015
6,133
297,674
346,162
55,859
290,303
146,515
2,138,812
2018
877,622
7.4
647,813
229,808
26.2
74,599
155,209
44,346
15,583
0
126,446
25,881
20.5
4,451
-425
105,440
-17,448
87,992
-10.9
2018
82,455
953,180
1,035,635
9,478
1,300,143
24,081
2,369,337
1,501,531
206,147
1,295,385
820,931
92,515
534,851
61,403
88,122
43,876
6,931
334,519
374,344
67,309
307,035
160,507
2,369,337
2019
906,369
3.3
707,282
199,086
22.0
76,881
122,205
52,609
17,953
0
87,550
-32,064
-36.6
6,721
-66
126,400
-11,786
114,614
30.3
2019
98,946
1,001,424
1,100,370
6,648
1,616,818
41,997
2,765,833
1,665,811
287,597
1,378,214
1,067,775
81,000
646,976
81,194
101,477
27,823
6,727
429,755
408,131
85,658
322,473
238,845
2,765,833
2020
1,143,361
26.1
779,275
364,086
31.8
103,562
260,524
81,169
29,085
0
208,441
93,475
44.8
4,054
3,018
116,002
20,607
136,609
19.2
2020
98,946
1,089,446
1,188,392
33,172
2,005,115
76,171
3,302,849
2,368,792
490,764
1,878,028
985,085
93,066
817,693
111,385
203,708
32,143
7,638
462,819
471,022
101,767
369,255
346,671
3,302,849
2021E
1,115,574
-2.4
744,263
371,311
33.3
118,992
252,319
96,378
26,150
-15,867
166,223
33,792
20.3
6,604
3,018
136,017
0
149,028
9.1
2021E
98,946
1,156,821
1,255,767
33,172
2,068,047
76,171
3,433,157
2,653,540
609,756
2,043,784
956,656
98,923
808,197
105,187
153,055
79,499
7,638
462,819
474,404
105,149
369,255
333,793
3,433,157
2022E
1,274,878
14.3
859,036
415,842
32.6
135,538
280,304
110,870
21,684
0
191,118
41,766
21.9
18,066
3,018
164,400
0
164,400
10.3
2022E
98,946
1,241,146
1,340,092
33,172
2,083,221
76,171
3,532,656
3,187,663
745,294
2,442,369
655,695
100,679
811,900
109,128
144,280
88,035
7,638
462,819
477,986
108,731
369,255
333,914
3,532,656
2023E
1,381,805
8.4
918,460
463,344
33.5
151,470
311,874
123,693
17,091
0
205,272
45,084
22.0
19,836
3,018
177,006
0
177,006
7.7
2023E
98,946
1,307,624
1,406,569
33,172
2,020,307
76,171
3,536,219
3,481,802
896,764
2,585,038
488,063
100,679
854,818
125,784
139,607
118,971
7,638
462,819
492,379
123,124
369,255
362,439
3,536,219
(INR m)
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Loans
Deferred Tax Liability
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Others
Current Liabilities
Payables
Other current liabilities
Net Working Capital
Application of Funds
Balance Sheet
(INR m)
5 February 2021
6
 Motilal Oswal Financial Services
NTPC
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/EBITDA
Dividend Yield (%)
Return Ratios (%)
EBITDA Margins (%)
Net Profit Margins (%)
RoE
RoIC (Post-tax)
RoCE (Post-tax)
Working Capital Ratios
Debtor (Days)
Inventory (Days)
Payable (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/EBITDA
Net Debt/Equity
2016
9.8
16.2
90.1
2.7
27.3
11.1
6.7
1.2
11.9
2.5
24.7
14.9
11.3
9.0
7.2
51
40
34
1.5
4.2
5.9
1.2
2017
10.0
16.9
98.9
3.8
38.3
9.9
5.9
1.0
9.5
3.9
26.7
13.1
10.6
10.5
6.6
40
29
25
1.4
4.6
5.1
1.1
2018
8.9
18.2
104.7
3.6
40.5
11.1
5.4
0.9
9.7
3.6
26.2
12.0
8.7
9.3
6.4
37
26
28
1.4
3.9
5.5
1.2
2019
11.6
20.5
111.2
5.4
46.3
8.6
4.8
0.9
12.9
5.4
22.0
13.9
10.7
6.3
6.7
41
33
34
1.6
2.7
8.0
1.4
2020
13.8
22.2
120.1
3.2
22.8
7.2
4.5
0.8
8.1
3.2
31.8
10.1
11.9
10.6
6.5
65
36
32
1.7
3.6
5.4
1.7
2021E
15.1
25.8
126.9
6.0
39.8
6.6
3.8
0.8
8.0
6.1
33.3
12.2
12.2
9.0
7.3
50
34
34
1.7
2.9
5.4
1.6
2022E
16.6
30.3
135.4
7.0
42.1
6.0
3.3
0.7
7.2
7.1
32.6
12.9
12.7
8.8
7.5
41
31
31
1.7
2.7
4.8
1.5
2023E
17.9
33.2
142.2
10.0
55.9
5.5
3.0
0.7
6.2
10.1
33.5
12.8
12.9
8.8
8.0
37
33
33
1.7
2.7
4.1
1.4
Y/E March
Profit/(Loss) before Tax
Interest
Depreciation
(Inc)/Dec in WC
Tax paid
others
CF from Operations
Capex
(Pur)/sale of Invest.
Acquisition in subs.
Int. & Div. Income
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
finance cost
Dividend (incl. tax)
Others
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
Cash Flow Statement
2016
101,035
41,090
61,534
-36,422
-14,584
1,452
154,106
-232,470
16,536
0
9,528
-16,514
-222,920
80,528
-33,513
1,252
-35,206
-104,021
161,390
57,369
-83,473
2017
137,606
35,691
60,099
-2,073
-26,263
-3,395
201,666
-243,451
3,436
-12,002
2,707
-8,262
-257,573
150,466
-43,269
0
31,552
-24,355
57,369
33,015
-75,645
2018
132,417
44,160
74,599
-58,298
19,257
-15,508
196,627
-187,559
0
-11,531
3,033
-42
-196,099
145,059
-48,669
0
10,333
10,861
33,015
43,876
-86,058
2019
83,719
52,431
76,881
-72,868
-30,390
53,898
163,671
-197,548
0
-40,574
1,079
343
-236,700
224,698
-107,672
2020
222,816
80,606
103,562
-63,198
-36,069
-61,885
245,832
-180,625
0
-122,650
58
344
-302,873
232,572
-133,992
-37,751
-787
60,043
3,002
27,823
30,825
2021E
169,809
96,378
118,992
60,233
-33,792
-26,150
385,471
-256,320
-5,857
26,150
-236,027
62,932
-96,378
-59,367
-92,814
56,631
30,825
87,456
2022E
206,166
110,870
135,538
8,416
-41,766
-21,684
397,541
-233,161
-1,756
21,684
-213,234
15,175
-110,870
-69,262
-164,957
19,350
87,456
106,806
2023E
222,090
123,693
151,470
2,410
-45,084
-17,091
437,488
-126,508
0
17,091
-109,417
-62,914
-123,693
-98,946
-285,553
42,518
106,806
149,325
(INR m)
-59,272
-778
56,976
-16,053
43,876
27,823
5 February 2021
7
 Motilal Oswal Financial Services
NTPC
NOTES
5 February 2021
8
 Motilal Oswal Financial Services
NTPC
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.
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 that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant
banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from
MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or
use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong
Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
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
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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
********************************************************************************************************************************
5 February 2021
9
 Motilal Oswal Financial Services
NTPC
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,
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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,
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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
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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.
5 February 2021
10