BSE SENSEX
51,325
S&P CNX
15,119
Gujarat Gas
CMP: INR479
18 February 2021
Update | Sector: Oil & Gas
TP: INR560 (+17%)
Buy
The Green Wave – upgrading the multiple
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
GUJGA IN
688
329.6 / 4.2
527 / 191
25/23/42
330
39.1
Financials Snapshot (INR b)
Y/E March
FY21E FY22E FY23E
Sales
96.6 141.6 163.8
EBITDA
20.4
21.9
24.7
PAT
12.3
13.7
16.0
EPS (INR)
17.8
19.9
23.3
EPS Gr. (%)
2.9
11.8
17.0
BV/Sh.(INR)
62.8
79.5
99.1
Ratios
Net D:E
0.4
0.2
0.1
RoE (%)
32.2
28.0
26.1
RoCE (%)
32.5
31.2
31.1
Payout (%)
16.0
16.0
16.0
Valuations
P/E (x)
27.8
24.8
21.2
P/BV (x)
7.9
6.2
5.0
EV/EBITDA (x)
16.8
15.1
12.8
Div. Yield (%)
0.6
0.6
0.8
FCF Yield (%)
3.1
4.8
4.8
Shareholding pattern (%)
As On
Dec-20 Sep-20 Dec-19
Promoter
60.9
60.9
60.9
DII
7.3
7.3
6.3
FII
9.0
9.1
11.1
Others
22.8
22.7
21.8
FII Includes depository receipts
Stock Performance (1-year)
Gujarat Gas
Sensex - Rebased
550
450
350
250
150
Gujarat Gas (GUJGA) has proved to be a clear outperformer since the curbing of
polluting fuels at Morbi – an impetus by the government toward the adoption of
greener fuel.
Since our upgrade in Dec’19, the stock is up 116% – it has outperformed the Nifty by
~95% – despite which the stock trades at 21x FY23E EPS currently.
Interestingly, we have upgraded our EPS every quarter since then (from INR12.3 to
INR19.9 for FY22E) on the back of better-than-expected volume growth.
CGDs have been a true consumption story and, as highlighted in Exhibit 1, the market
has always valued volume growth for these names. GUJGA has clocked volume
growth of ~8% QoQ each time since 1QFY20 – despite the COVID-led disruption
witnessed in 1HFY21. Over the past five years, the company has posted a volume
CAGR of ~11%; we build in the same volume growth over the next two years as well.
The Ceramic Association of Morbi expects growth of 25–30% in FY22 (v/s ~15% in
FY21) as 60 more industrial units are likely to be commissioned over Oct–Dec’21 and
the current units would undergo further expansions.
Also, we have been highlighting that any further pollution control measure or
impetus on growing gas consumption in India hereafter would benefit GUJGA
significantly (v/s the other two incumbents).
GUJGA would be the biggest beneficiary of any directive on Green Tax announced
by MoRHT (refer
to our report)
– as Gujarat has no government directive on the
use of CNG yet.
Once gas is included under GST, GUJGA would benefit from increased volume
offtake, as industrial consumers would be able to take input tax credits, thus
lowering their gas feedstock cost. GUJGA would be able to take tax credit on
opex and capex as well.
Factoring in all of the above, the stock demands an upgrade, thus closing the gap v/s
IGL (same volume growth potential of 10–12% over the medium term) – we value the
stock at 24x (from 22x earlier) to arrive at Target Price of INR560/share. Reiterate
Buy, with the possibility of further earnings upgrades going forward.
Green Tax – Industries to be the biggest beneficiary
Basic tenets remain the same
On 17
th
Feb, PM Modi stated that the government was committed to bringing
natural gas under the GST regime (article). We have discussed the topic in
detail in our report, ‘Inclusion
of natural gas in GST would be positive’.
Since 2014, the focus on gas has been increasing to tackle pollution in the
country – via increased CNG/PNG penetration and higher offtake from
industries (in line with an increase in the gas mix to 15% v/s 6–7% currently).
The implementation of GST would also reduce the various anomalies that
currently prevail, such as different states charging a different VAT on CNG. For
example, Delhi charges nil, Maharashtra charges 13.5%, and Gujarat charges
15% VAT.
Our study suggests an 18% GST rate could marginally benefit CNG.
However, it
may be marginally negative for PNG-domestic. It would also benefit industrial
consumers the most.
Swarnendu Bhushan- Research Analyst
(Swarnendu.Bhushan@MotilalOswal.com
Sarfraz Bhimani - Research Analyst
(Sarfraz.Bhimani@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
Gujarat Gas
Valuation and view – volume CAGR of 10% beyond FY22 as well
To emphasize, the input tax credit from GST would increase the competitive
advantage / aid margins for ceramic units that are seeing increased demand
from GCC and the US, while consumers are adopting the China+1 strategy.
Volume growth over the last couple of quarters has been a reflection of strong
export orders at Morbi. This has also resulted in the emergence of a new
ceramic cluster at Aniyari – a potential 0.5mmscmd market in the making.
GUJGA could also see the highest volume boost (2–3mmscmd in the short term)
from any directive by NGT to curb industrial pollution.
The company has commercialized ~90 new CNG stations in FY21’TD and plans to
add ~160 new CNG stations by the end of FY21. Despite having ~480 CNG
stations (v/s more than 560 for IGL), GUJGA’s CNG volumes are only one-third
that of IGL.
GUJGA has started taking ~0.7mmscmd of RIL’s KG Basin gas at an 8.5% slope to
Brent, further facilitating margin stability. Considering the management’s efforts
toward delivering volume growth and maintaining sustainable margins, we build
in volumes of 9.2mmscmd/12mmscmd/13.5mmscmd for FY21E/FY22E/FY23E.
Assuming ~11% volume growth potential in the medium term, GUJGA (at 21x
FY23E EPS) trades at a 30% discount to IGL SA (at 30x FY23E EPS).
In addition to volumes, the company could surprise on the EBITDA margin front
as well under the following two scenarios:
If NGT announces similar bans on dirty alternate fuels at other industrial clusters
in GUJGA’s operating areas
If CNG takes a larger pie in the total sales mix – as it is the most profitable
segment.
Exhibit 1: GUJGA trades at 30% discount to IGL
GUJGA has outperformed IGL for CY19, while the outperformance gap
350
has widened post COVID. Despite it GUJGA trades at 30% discount to IGL.
275
200
125
50
GUJGA
IGL
MAHGL
Daily price indexation chart
Morbi inflection
Source: Company, MOFSL
Exhibit 2: Ceramic (and allied product) exports were up ~2%
in FY21 (up to Nov), while imports were down ~26%...
USD mn
1,397
477
535
FY17
807
FY18
1,033
FY19
Exports
2,130
2,018
imports
Exhibit 3: …exports saw sharp recovery post lockdown, led by
demand in GCC countries and the US markets
240
USD mn
Exports
imports
1,299
1,322
180
120
812
FY20
564
419
60
0
FY20'till FY21'till
Nov
Nov
Source: Ministry of commerce, MOFSL
Source: Ministry of commerce, MOFSL
18 February 2021
2
 Motilal Oswal Financial Services
Gujarat Gas
Key assumption charts
Exhibit 4: PNG – I/C to boost volume growth
CNG (mmscmd)
PNG-household (mmscmd)
PNG-ind/comm (mmscmd)
6.2
4.4
0.5
1.3
FY18
6.5
7.4
4.6
0.5
1.4
FY19
0.6
1.5
FY20
7.3
3.6
0.6
1.2
0.7
1.6
0.8
1.9
FY16
FY17
FY18
FY19
FY20
FY21E FY22E FY23E
Source: Company, MOFSL
12.0
9.4
9.2
9.7
10.9
3.8
3.9
4.1
4.7
13.5
Exhibit 5: EBITDA/scm to normalize at ~INR5.0 in FY22/FY23E
EBITDA/scm (INR)
6.1
5.0
5.0
5.5
4.0
0.5
1.1
FY16
5.4
3.8
0.5
1.2
FY17
FY21E FY22E FY23E
Source: Company, MOFSL
Peer comparison charts – GUJGA at a discount to IGL
Exhibit 6: On FY23 PE, GUJGA trades at 21x v/s IGL at 30x
P/E (x)
165
155
117
67
37
29
24
60
79
51
21
FY19
38
32
30
2935 28
25
17
15
14
1421
FY20
FY21E FY22E FY23E
Source: Company, MOFSL
MAHGL
GUJGA
IGL
Exhibit 7: …with EV/EBITDA of 13x v/s IGL at 19x
EV/EBITDA (x)
MAHGL
GUJGA
IGL
4951
49
41
4035
36
31
13
95
22
18
15
25
22
11
25
17
11
9
21
15
9
19
13
FY16
FY17
FY18
FY16
FY17
FY18
FY19
FY20 FY21E FY22E FY23E
Source: Company, MOFSL
Exhibit 8: GUJGA has the best ROE profile…
ROE (%)
Exhibit 9: …with highest Free Cash Flow generation
FCF (INR b)
GUJGA
44
IGL
MAHGL
GUJGA
IGL
MAHGL
16
16
87
3
24
24
21 2123 21 2121
18
17
14
12
30
25
32
1921
28
22
19
26
1820
4
1
7
2 2
3 3
8
44 453
4
11
6
56
(1)
FY16 FY17 FY18 FY19 FY20 FY21E FY22E FY23E
Source: Company, MOFSL
FY16
FY17
FY18
FY19
FY20 FY21E FY22E FY23E
Source: Company, MOFSL
18 February 2021
3
 Motilal Oswal Financial Services
Gujarat Gas
Financials and Valuations
Standalone - Income Statement
Y/E March
Total Income from Operations
Change (%)
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Current Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
(INR M)
FY16
61,059
-32.2
7,264
11.9
2,457
4,808
2,475
445
2,779
-256
2,523
648
25.7
1,875
2,065
-53.5
3.4
FY17
50,926
-16.6
7,433
14.6
2,573
4,860
2,090
263
3,033
0
3,033
838
27.6
2,195
2,195
6.3
4.3
FY18
61,743
21.2
8,951
14.5
2,718
6,232
1,961
357
4,628
0
4,628
1,715
37.0
2,914
2,914
32.7
4.7
FY19
77,544
25.6
9,846
12.7
2,880
6,966
1,962
1,113
6,117
-179
5,939
1,768
29.8
4,170
4,296
47.4
5.5
FY20
1,03,003
32.8
16,343
15.9
3,180
13,163
1,922
837
12,078
0
12,078
145
1.2
11,933
11,933
177.8
11.6
FY21E
96,625
-6.2
20,438
21.2
3,357
17,081
1,432
754
16,403
0
16,403
4,129
25.2
12,275
12,275
2.9
12.7
FY22E
1,41,582
46.5
21,902
15.5
3,466
18,436
1,246
1,146
18,336
0
18,336
4,615
25.2
13,721
13,721
11.8
9.7
FY23E
1,63,751
15.7
24,746
15.1
3,599
21,147
1,084
1,385
21,447
0
21,447
5,398
25.2
16,049
16,049
17.0
9.8
Standalone - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Deferred Tax Liabilities
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
…of which cash
Bank balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
E: MOFSL Estimates
(INR M)
FY16
1,377
13,718
15,095
9,865
17,066
42,025
54,153
7,704
46,449
4,682
1,218
7,544
413
3,005
678
227
451
3,447
17,868
2,515
14,986
367
-10,324
42,025
FY17
1,377
15,072
16,449
9,849
22,987
49,285
59,393
10,376
49,017
5,071
683
8,714
417
3,475
608
175
433
4,214
14,199
3,140
10,660
399
-5,485
49,285
FY18
1,377
17,087
18,464
10,455
22,143
51,062
64,021
13,094
50,927
4,797
161
10,449
568
3,917
1,363
931
432
4,601
15,271
2,931
11,957
383
-4,822
51,062
FY19
1,377
20,463
21,840
10,816
20,892
53,547
68,861
15,974
52,887
4,902
160
13,326
694
5,103
3,092
944
2,148
4,437
17,727
3,523
13,724
480
-4,402
53,548
FY20
1,377
31,529
32,906
8,005
18,344
59,255
73,531
19,154
54,377
5,708
1,633
17,255
463
5,101
6,919
5,472
1,447
4,772
19,718
3,670
15,015
1,033
-2,464
59,255
FY21E
1,377
41,845
43,222
8,005
15,344
66,570
75,672
22,511
53,161
8,567
1,633
21,657
407
4,785
11,989
10,542
1,447
4,476
18,448
3,226
14,085
1,137
3,209
66,570
FY22E
1,377
53,376
54,753
8,005
12,344
75,102
78,386
25,977
52,408
10,853
1,633
37,164
639
7,012
22,954
21,507
1,447
6,559
26,957
5,068
20,638
1,250
10,207
75,102
FY23E
1,377
66,864
68,241
8,005
9,344
85,590
81,556
29,576
51,980
12,683
1,633
50,425
742
8,110
33,987
32,541
1,447
7,586
31,132
5,887
23,870
1,375
19,293
85,590
18 February 2021
4
 Motilal Oswal Financial Services
Gujarat Gas
Financials and Valuations
Ratios
Y/E March (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Working Cap. Turnover (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Debt/Equity
FY16
3.0
6.6
21.9
0.5
22.1
165.0
75.4
22.6
5.8
49.2
0.1
1.5
11.8
12.5
1.5
2
18
15
-66
0.4
1.9
1.1
FY17
3.2
6.9
23.9
0.6
22.6
155.2
71.5
20.7
7.1
48.9
0.1
3.2
13.9
14.3
1.0
3
25
23
-44
0.6
2.3
1.4
FY18
4.2
8.2
26.8
0.8
22.8
117.0
60.5
18.5
5.9
40.4
0.2
4.8
16.7
16.5
1.2
3
23
17
-37
0.7
3.2
1.2
FY19
6.2
10.4
31.7
1.0
19.9
79.3
47.5
15.6
4.6
36.4
0.2
6.5
21.3
19.4
1.4
3
24
17
-35
0.8
3.6
1.0
FY20
17.3
22.0
47.8
1.3
8.7
28.6
22.5
10.4
3.4
21.5
0.3
12.0
43.6
29.8
1.7
2
18
13
-33
0.9
6.8
0.6
FY21E
17.8
22.7
62.8
2.8
16.0
27.8
21.8
7.9
3.6
16.8
0.6
15.6
32.2
32.5
1.5
2
18
12
-33
1.2
11.9
0.4
FY22E
19.9
25.0
79.5
3.2
16.0
24.8
19.8
6.2
2.3
15.1
0.6
23.6
28.0
31.2
1.9
2
18
13
-33
1.4
14.8
0.2
FY23E
23.3
28.5
99.1
3.7
16.0
21.2
17.3
5.0
1.9
12.8
0.8
23.7
26.1
31.1
1.9
2
18
13
-33
1.6
19.5
0.1
Standalone - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
Others
CF from Operations
(Inc)/Dec in FA
Free Cash Flow
Others
CF from Investments
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
E: MOFSL Estimates
FY16
2,537
2,454
2,474
-576
-224
-295
6,371
-5,585
1,042
-35
3,752
-8,892
-2,518
-831
-12,241
-2,118
2,346
228
FY17
3,033
2,573
2,090
-489
-118
-80
7,010
-4,805
2,205
296
-4,509
176
-2,316
-414
-2,553
-52
228
176
FY18
4,628
2,718
1,961
-1,040
-231
-190
7,847
-4,555
3,292
198
-4,357
-248
-1,986
-499
-2,733
757
176
933
FY19
5,939
2,880
1,962
0
-288
-849
9,644
-5,376
4,447
-761
-6,137
-1,139
-1,947
-408
-3,494
13
933
945
FY20
12,078
3,180
1,922
-2,801
413
-571
14,220
-5,956
8,265
1,287
-4,668
-2,149
-1,864
-837
-5,025
4,527
945
5,472
FY21E
16,403
3,357
1,432
-4,129
-603
-754
15,707
-5,000
10,707
754
-4,246
-3,000
-1,432
-1,959
-6,391
5,070
5,472
10,542
FY22E
18,336
3,466
1,246
-4,615
3,968
-1,146
21,254
-5,000
16,254
1,146
-3,854
-3,000
-1,246
-2,190
-6,436
10,965
10,542
21,507
(INR M)
FY23E
21,447
3,599
1,084
-5,398
1,947
-1,385
21,294
-5,000
16,294
1,385
-3,615
-3,000
-1,084
-2,561
-6,646
11,033
21,507
32,541
18 February 2021
5
 Motilal Oswal Financial Services
Gujarat Gas
NOTES
18 February 2021
6
 Motilal Oswal Financial Services
Gujarat Gas
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30
days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations,
is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOFSL is a subsidiary
company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on www.motilaloswal.com. MOFSL
(erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of
India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its
stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member
of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance
products.
Details
of
associate
entities
of
Motilal
Oswal
Financial
Services
Limited
are
available
on
the
website
at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell
the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a
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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 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
********************************************************************************************************************************
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
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 Motilal Oswal Financial Services
Gujarat Gas
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
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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)
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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