2 March 2021
Company Update | Sector: Textiles
Trident
Buy
BSE SENSEX
50,297
S&P CNX
14,919
CMP: INR14
TP: INR19 (+36%)
Paper biz. to also drive growth hereafter!
Trident (TRID)’s Paper segment, which contributed 20%/55% to FY20 revenue/EBIT,
is expected to post a better performance in the upcoming quarter. It would be
supported by improving demand, led by the opening up of educational institutes and
corporate offices and the start of a new academic year. TRID is yet to recover to pre-
COVID levels, particularly on the margin front – it is weighed by lower demand and
prices. We interacted with the CEO of the Paper division of TRID – Mr Naveet Jindal
to get his perspective on the Paper industry and TRID’s Paper division. Against this
backdrop, in this note, we have highlighted the current demand situation and the
pricing scenario for the Paper industry. We have further detailed how it is expected
to move going forward. The following are the key insights:
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
Financials Snapshot (INR b)
Y/E MARCH
FY21E
Sales
45.5
EBITDA
8.3
Adj. PAT
3.4
EBITDA Margin(%)
11.0
Adj. EPS (INR)*
0.7
EPS Gr. (%)
5.6
BV/Sh. (INR)
6.8
Ratios
Net D:E
0.4
RoE (%)
10.6
RoCE (%)
8.2
Payout (%)
7.2
Valuations
P/E (x)
20.3
EV/EBITDA (x)
9.8
Div. Yield (%)
0.3
FCF Yield (%)
5.4
*Cons.
Shareholding pattern (%)
As On
Dec-20
Promoter
73.0
DII
0.9
FII
3.6
Others
22.5
Stock Performance (1-year)
20
15
10
5
0
Trident
TRID IN
4,978
71.1 / 1
17 / 3
-3/87/121
185
27.0
2022E
56.6
10.8
5.2
12.8
1.0
53.4
7.7
0.4
14.4
11.3
12.0
13.2
7.7
0.8
0.2
2023E
64.0
12.6
6.7
13.8
1.3
29.2
8.9
0.2
16.2
13.0
12.0
10.3
6.3
1.0
12.5
World’s largest wheat straw-based paper manufacturer
Sep-20
71.8
1.0
1.6
25.6
Dec-19
71.1
1.0
2.2
25.8
FII Includes depository receipts
Sensex - Rebased
TRID is the world’s largest manufacturer of wheat straw-based paper, with
annual capacity of 175,000mt.
The company uses wheat straw, an eco-friendly raw material, which is a
by-product of wheat. This facilitates easy procurement at attractive pricing
as Punjab is the highest wheat-producing state in the country.
TRID has 12% market share in India in the Copier segment; in NCR and the
North region, TRID has 30%+ market share. In Punjab, the company has
market share of 50%.
Wheat straw constitutes 65% of the RM for TRID – it is procured from
within a 100–150km radius. Avg cost of wheat straw (bone dry metric ton)
is INR4,550/mt.
Waste wood chips make up the remaining 35% of the RM. These are
generated by the Wood industry and procured from within a 150km
radius. The cost of wood chips stands at INR8,500/mt.
Cost of manufacturing wheat straw-based paper is lower v/s wood-based
paper manufacturing. This ensures a higher EBITDA margin of 35.7%
(FY20) v/s peers (JK Paper: 28.5%, TNPL: 18%, West Coast: 25%). For FY20,
EBITDA/mt for TRID stood at INR21,879 – v/s JK Paper at INR15,500, TNPL
at INR11,059, and West Coast at INR16,457.
TRID’s capacity utilization in the Paper segment stood at 86% in FY20, with
EBITDA/mt of INR21,879 (down 19% YoY, primarily due to price decline).
In 9MFY21, the Paper segment’s revenue/EBIT declined 31%/52% YoY on
account of 16% decline in sales volumes. This was weighed by lower
demand on account of the pandemic (lower demand for copier paper /
maplitho as offices / educational institutes were closed and lower demand
from government institutions) and 15% YoY decline in realization.
Capacity utilization for 9MFY21 stood at 74% for Paper; this was 87%/80%
in 3QFY21/2QFY21. In Jan’21, plants were operating at 91% capacity
utilization.
Sumant Kumar - Research Analyst
(Sumant.Kumar@motilaloswal.com)
Research Analyst: Darshit Shah
(Darshit.Shah@MotilalOswal.com) |
Yusuf Inamdar
(Yusuf.Inamdar@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
Trident
Demand and pricing recovery already underway
Capacity utilization in the industry:
During Apr–Sep’20, India’s Paper industry
was operating at 55–60% capacity. The same stood at 70–75% during Oct–
Dec’20. It is now operating at 95% capacity utilization.
Recent demand trends:
Packaging board consumption has exceeded pre-COIVD
demand levels on the back of higher e-commerce sales and consumption of
packaged foods. Around 30% of writing and printing (W&P) paper is consumed
by the Education sector (schools and colleges) in India, which has been impacted
by the pandemic. The new academic year in India starts in June; the industry is
expected to reach normal demand levels by this time.
Paper pulp prices have now begun to rise on demand revival and waste paper
shortage:
Recently, pulp prices have increased to USD650/mt from lows of
USD460–470/mt in Oct/Nov’20. Twelve months ago, pulp prices stood at
USD750/mt. For pulp manufactures globally, prices need to remain in the range
of USD550–575/mt to stay viable.
Thus, in India, paper prices increased 2–5% over Jan–Feb’21 on the back of an
increase in global pulp prices and demand revival.
As per industry sources, copier paper prices increased 2–3% and maplitho prices
3–5% over Jan–Feb’21. W&P paper price is further expected to increase by
INR1.5–2/kg in Mar’21.
For TRID, paper price pre-COVID stood at INR53–54/kg and declined 22–23% in
Mar’20. The company has increased paper prices by INR8–9/kg. It is taking new
orders at pre-COVID rates only, and intends to further raise prices by 1–1.5/kg.
Textiles and Paper segments to drive earnings momentum hereafter
In FY21, TRID’s Textiles division has aided performance on the back of demand
revival in the Home Textiles segment. The demand trend is expected to continue
in the coming quarters on six months of order book visibility.
However, performance in the Paper segment over the past three quarters was
impacted by the closure of educational institutes and corporate offices;
however, demand is expected to improve going forward on the gradual opening
up.
Thus, we expect the Paper segment’s revenue to grow 29%, with EBIT growth of
66% in FY22.
Valuation and view
Work-from-home in most of the big cities across the world has contributed to
demand revival in Home Textiles – with people spending more on home
improvement products as the home has become their primary workplace.
Demand revival was further supported by government stimulus, consumer focus
on health and hygiene, etc.
The company has seen a strong 2Q and 3Q for Home Textiles. This trend is
expected to continue in the coming quarters on account of order book visibility
for the next six months.
Additionally, TRID’s performance in 4QFY21 and FY22 would be aided by
improved demand visibility and higher prices in the Paper segment.
The management has unveiled its ‘VISION 2025’, wherein it targets revenue of
INR250b by CY25, with 12% PAT. The board has authorized its Strategy
2 March 2021
2
 Motilal Oswal Financial Services
Trident
Committee to examine various rapid growth strategies to achieve its vision. The
committee would explore various options, including (but not limited to) the
following: i) unlocking value for shareholders through restructuring existing
businesses, ii) capital allocation strategies to improve return ratios, iii)
expanding existing businesses / diversifying into new businesses through
organic/inorganic growth, and iv) penetrating new markets, undertaking
product development, e-commerce, and brand building. We await further
clarity on how the management would achieve this vision.
We value TRID at 14x FY23E EPS to arrive at TP of INR19. Maintain
Buy.
Exhibit 1: One-year forward P/E (x)
20
P/E (x)
Avg (x)
Max (x)
Min (x)
+1SD
18.7
-1SD
14.3
11.9
10
8.2
4.6
0
1.9
Source: MOFSL
Exhibit 2: Global v/s India’s Paper industry growth
Coated
Uncoated
Cream Wove
Copier & High Bright Maplitho
Packaging Board
Virgin Fiber Based
Recycled Fiber Based
Tissue
lndustrial incl. Kraft
Newsprint
Others
Total
Volume (MMT)
FY19
FY19
FY22-23
Global
India
25.5
0.8
0.8
4.6
4.8
53.9
2.1
2.2
2.5
2.6
4.7
6.1
45.4
1
1.3
3.7
4.7
35.8
0.2
0.4
174
5.7
8
44
2.6
2.2
36
0.6
0.7
414.6
19.2
22.9
FY19
Global
6.2
13
11
8.6
42
10.6
8.7
100
Share (%)
Projected growth
FY19
FY22-23
over FY19-23 (%)
India
Global
India
4.2
3.5
-3.9
-1.0
24
20.9
1.0
10.9
9.4
-2.8
0.6
13
11.5
1.2
24.5
26.4
6.5
5.2
5.9
1.3
8.0
19.3
20.5
6.2
1
1.5
4.1
15.4
29.7
34.9
2.2
8.9
13.5
9.6
-7.1
-4.1
3.1
3.1
-0.7
4.6
100
100
0.1
4.5
Source: JK Paper Presentation, MOFSL
2 March 2021
3
 Motilal Oswal Financial Services
Trident
Exhibit 3: MoM paper production trend in TRID
Paper Production (In 000'MT)
94%
93%
91% 95%
89%
85% 89%
83% 88%
83%
80%
Utilization (%)
82% 85%
66%
68%
72%
82%
94%
84% 84%
91%
86% 85%
69%
18%
Source: Company, MOFSL
Exhibit 4: Paper from Oct’20 reached pre-COVID levels for TRID
Volume (In 000 MT)
2019
2020
12.6
13.5
12.4
10.1
12.1
9.6
13.2
13.9
11.7
9.9
2.6
12.0
13.0
12.3
12.1
10.6
12.9
11.9
13.7
13.7
12.5
12.3
12.9
12.3
Jan
Feb
March
April
May
June
July
Aug
Sept
Oct
Nov
Dec
Source: Company, MOFSL
Exhibit 5: Copier constituted 55% of Paper segment sales in
FY20
Exhibit 6: Paper segment capacity utilization trend
Capacity (MT)
88.1
89.0
89.0
Production (MT)
89.0
86.0
Utilisation (%)
89.0
89.0
45%
55%
Copier
Non-Copier
77.0
FY16
FY17
FY18
FY19
FY20
FY21E FY22E FY23E
Source: Company, MOFSL
Source: Company, MOFSL
2 March 2021
4
 Motilal Oswal Financial Services
Trident
Exhibit 7: Revenue mix trend (%)
Yarn
21
46
19
49
Bed & Bath Linen
19
48
19
51
20
Paper
15
16
15
36
54
71
69
65
64
32
FY16
33
FY17
33
FY18
30
FY19
26
FY20
14
15
20
FY16
FY17
FY18
67
48
46
FY19
45
FY20
67
62
65
33
52
54
55
33
38
35
Exhibit 8: EBIT mix trend (%)
Textile
Paper
FY21E FY22E FY23E
Source: Company, MOFSL
FY21E FY22E FY23E
Note: Adj unallocable expenses in the ratio of sales
Source: Company, MOFSL
Exhibit 9: Paper segment revenue trend
Revenue (INRm)
16%
-2%
5%
-8%
9,966
FY19
9,219
FY20
6,997
-24%
Gr (%)
29%
Exhibit 10: Paper segment EBITDA trend
EBITDA (INRm)
41.4% 42.0%
32.4% 34.1%
35.7%
27.0%
Margin (%)
37.3%
10%
-3%
34.1%
7,958
FY16
8,724
FY17
8,579
FY18
9,057
9,510
2,581 2,975 3,549 4,184 3,293 1,891 3,086 3,547
FY16
FY17
FY18
FY19
FY20
FY21E FY22E FY23E
FY21E FY22E FY23E
Source: Company, MOFSL
Adj unallocable expenses in the ratio of sales
Source: Company, MOFSL
Exhibit 11: Paper segment EBITDA/mt trend
EBITDA/mt (INR)
21,879
14,036
-19%
16,743 19,101 22,788 26,865
FY16
FY17
FY18
FY19
FY20
-36%
19,813 22,777
Growth (%)
41%
14%
19%
18%
15%
Exhibit 12: Paper segment return matrix
Paper Capital Employed (INRm)
Paper EBIT (INRm)
Segment ROCE (%)
50%
36%
16%
24%
26%
57%
80%
67%
6%
FY21E FY22E FY23E
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
Adj unallocable expenses in the ratio of sales
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 13: EBITDA/mt of paper companies
EBITDA/mt
JK Paper
TNPL
West Coast Paper
Trident
FY16
8,596
13,917
5,956
16,743
FY17
10,731
14,737
10,435
19,101
FY18
12,327
8,168
12,620
22,788
FY19
16,637
10,430
16,703
26,865
FY20
15,500
11,059
16,457
21,879
5 year avg
12,758
11,662
12,434
21,475
Source: Company, MOFSL
2 March 2021
5
 Motilal Oswal Financial Services
Trident
Financials and valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Share of profit/(loss) of associates
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY16
36,657
-2.4
29,359
80.1
7,297
19.9
3,366
3,931
1,452
334
2,813
0
2,813
392
13.9
0
2,421
2,421
105.4
6.6
FY17
46,252
26.2
37,397
80.9
8,855
19.1
4,125
4,730
1,410
1,062
4,382
0
4,382
1,016
23.2
7
3,372
3,372
39.3
7.3
FY18
45,594
-1.4
37,402
82.0
8,192
18.0
4,041
4,151
1,182
621
3,590
-321
3,911
1,256
32.1
6
2,661
2,341
-30.6
5.1
FY19
52,486
15.1
41,931
79.9
10,555
20.1
3,640
6,915
1,185
434
6,165
666
5,499
1,784
32.4
2
3,718
4,383
87.3
8.4
FY20
47,277
-9.9
38,979
82.4
8,298
17.6
3,337
4,961
1,109
202
4,055
-192
4,246
813
19.2
-36
3,397
3,205
-26.9
6.8
FY21E
45,482
-3.8
37,134
81.6
8,348
18.4
3,330
5,018
636
200
4,582
-539
5,122
1,198
23.4
0
3,924
3,384
5.6
7.4
FY22E
56,589
24.4
45,837
81.0
10,752
19.0
3,529
7,223
738
453
6,937
0
6,937
1,746
25.2
0
5,191
5,191
53.4
9.2
(INR m)
FY23E
64,023
13.1
51,392
80.3
12,631
19.7
3,799
8,832
638
768
8,962
0
8,962
2,256
25.2
0
6,706
6,706
29.2
10.5
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Current Investments
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
FY16
5,094
19,267
24,361
34,427
1,582
60,369
70,389
23,415
46,974
571
1
723
17,025
9,065
2,513
819
4,627
4,924
2,237
2,539
148
12,101
60,369
FY17
4,979
20,416
25,395
28,498
2,952
56,844
69,188
27,540
41,648
1,232
49
1,054
16,107
7,747
3,751
1,326
3,282
3,196
1,730
1,259
207
12,911
56,844
FY18
4,978
22,284
27,262
28,192
3,401
58,855
70,603
31,581
39,022
1,766
109
1,152
19,693
9,226
4,604
1,666
4,197
2,777
1,690
947
139
16,916
58,855
FY19
4,981
24,749
29,730
24,360
4,079
58,169
72,387
35,221
37,166
1,318
669
1,982
21,095
10,121
6,577
257
4,141
3,392
1,866
1,333
193
17,703
58,169
FY20
4,979
25,235
30,214
19,518
3,366
53,098
74,677
38,558
36,119
1,408
0
1,276
18,960
9,164
2,754
3,379
3,664
4,666
2,023
2,430
213
14,294
53,098
FY21E
4,979
28,875
33,854
13,918
3,366
51,138
75,927
41,888
34,039
5,408
0
1,276
15,242
8,723
2,741
595
3,184
4,828
1,932
2,729
167
10,414
51,138
FY22E
4,979
33,441
38,420
15,518
3,366
57,304
80,927
45,417
35,510
7,408
0
1,276
19,181
10,853
3,411
957
3,961
6,072
2,469
3,395
208
13,109
57,304
(INR m)
FY23E
4,979
39,340
44,319
12,518
3,366
60,203
87,927
49,216
38,711
1,408
3,500
4,776
22,194
12,278
3,859
1,575
4,482
6,886
2,810
3,841
235
15,307
60,203
2 March 2021
6
 Motilal Oswal Financial Services
Trident
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/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY16
0.5
1.2
4.9
0.1
22.6
28.4
11.9
2.8
2.8
14.0
0.7
-1.2
10.4
6.8
6.4
0.5
0.6
191
25
47
3.5
2.7
1.4
FY17
0.7
1.5
5.1
0.2
27.1
20.4
9.2
2.7
2.1
10.8
1.1
1.7
13.6
7.9
6.5
0.7
0.8
127
30
28
5.0
3.4
1.1
FY18
0.5
1.3
5.5
0.1
33.8
29.4
10.8
2.5
2.1
11.6
1.1
0.5
8.9
5.9
5.2
0.6
0.8
148
37
27
7.1
3.5
1.0
FY19
0.9
1.6
6.0
0.0
4.8
15.7
8.6
2.3
1.8
8.8
0.2
1.0
15.4
9.1
8.6
0.7
0.9
152
46
28
6.2
5.8
0.8
FY20
0.6
1.3
6.1
0.0
6.4
21.4
10.5
2.3
1.8
10.2
0.3
1.2
10.7
8.0
7.9
0.6
0.9
156
21
34
4.1
4.5
0.5
FY21E
0.7
1.3
6.8
0.0
7.2
20.3
10.2
2.0
1.8
9.8
0.3
0.8
10.6
8.2
8.5
0.6
0.9
158
22
35
3.2
7.9
0.4
FY22E
1.0
1.8
7.7
0.1
12.0
13.2
7.9
1.8
1.5
7.7
0.8
0.0
14.4
11.3
11.8
0.7
1.0
154
22
35
3.2
9.8
0.4
FY23E
1.3
2.1
8.9
0.1
12.0
10.3
6.5
1.6
1.2
6.3
1.0
1.7
16.2
13.0
13.2
0.7
1.1
153
22
35
3.2
13.8
0.2
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY16
2,766
3,376
1,230
-600
-1,424
5,348
-60
5,288
-11,214
-5,926
-250
132
-11,332
611
7,809
-1,367
-360
0
6,694
649
170
819
FY17
4,388
4,125
1,300
-860
1,243
10,196
-200
9,996
-1,467
8,529
-193
-15
-1,675
87
-5,858
-1,398
-915
270
-7,814
507
819
1,326
FY18
3,590
4,041
1,095
-909
-3,017
4,799
-364
4,435
-2,019
2,416
-10
150
-1,879
0
-537
-1,224
-920
465
-2,217
339
1,326
1,666
FY19
5,499
3,640
1,185
-1,784
-2,195
6,345
0
6,345
-1,336
5,009
-831
0
-2,167
3
-3,832
-1,185
-180
-393
-5,586
-1,408
1,666
257
FY20
4,246
3,337
1,109
-813
675
8,554
0
8,554
-2,381
6,173
706
1,248
-427
-2
-4,842
-1,109
-218
1,165
-5,005
3,122
257
3,379
FY21E
5,122
3,330
636
-1,198
1,096
8,986
0
8,986
-5,250
3,736
0
0
-5,250
0
-5,600
-636
-283
0
-6,520
-2,784
3,379
595
FY22E
6,937
3,529
738
-1,746
-2,333
7,125
0
7,125
-7,000
125
0
0
-7,000
0
1,600
-738
-625
0
237
362
595
957
(INR m)
FY23E
8,962
3,799
638
-2,256
-1,580
9,564
0
9,564
-1,000
8,564
-3,500
0
-4,500
0
-3,000
-638
-807
0
-4,446
618
957
1,575
2 March 2021
7
 Motilal Oswal Financial Services
Trident
NOTES
2 March 2021
8
 Motilal Oswal Financial Services
Trident
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
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 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
-
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
2 March 2021
9
 Motilal Oswal Financial Services
Trident
other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific
recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there
might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
-
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
-
be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies)
discussed herein or act as an advisor or lender/borrower to such company(ies)
-
received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider
demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not
considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research
analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be
altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOFSL. The report is
based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from
publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made
as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not
constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers
simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or
in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be
used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal,
accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this
report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This
may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at
an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to
determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. Certain transactions -including those involving futures,
options, another derivative products as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied,
is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is
provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The
Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and
the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform
or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is
already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or
published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any
locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOFSL to any registration or
licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose
possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees, agents or representatives shall be
liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not
to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses,
costs, damages,
expenses that may be suffered by the person accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad(West), Mumbai-
400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412. AMFI:
ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration
No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.:
INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond,
NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. Private Equity is offered
through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory services is backed by proper research. Please read the Risk
Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee of the returns. Investment in securities market is subject to market risk,
read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law
Tribunal, Mumbai Bench.
-
2 March 2021
10