Motilal Oswal Financial Services

Piramal Enterprises

BSE SENSEX

50,030

S&P CNX

14,867

3 April 2021

Piramal Enterprises

Update | Sector: Healthcare

CMP: INR1,776

TP: INR2,210 (+24%)

Buy

Hemmo to step up peptide skills in CDMO segment



Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

12M Avg Val (INR M)

PIEL IN

212

401.4 / 5.5

2008 / 806

-6/8/13

2627



Financials & Valuations (INR b)

Y/E MARCH

2021E 2022E 2023E

Revenues

EBITDA

PAT

EPS (INR)

EPS Gr. (%)

BV/Sh. (INR)

Payout (%)

Valuations

P/E (x)

P/BV (x)

Div. Yield (%)

127.0 136.1 155.4

35.0 39.0 47.9

27.0 30.7 37.9

119.6 129.5 159.6

-588

1,507 1,591 1,695

14.9

1.2

2.3

13.8

1.1

2.5

Hemmo Pharmaceuticals’ acquisition by Piramal Pharma (PP) would add the

capability to develop and manufacture complex peptide APIs to the latter’s

portfolio.

It further complements services such as drug discovery solutions, process

development services, clinical trial-to-commercial supplies of APIs, and

formulations.

The valuation of 6x EV/FY21 sales (estimated at INR1.2b) is attractive as it is at a

~50% discount to leading CDMO players such as DIVI.

We raise the Pharma segment EBITDA of Piramal Enterprises (PIEL) by 5%/6% for

FY22/FY23E after factoring in the acquisition.

Accordingly, we raise PIEL’s SOTP-based target price to INR2,210. We remain

positive on PIEL on the back of superior execution in the Contract Development

and Manufacturing (CDMO), complex hospital generics (CHG), and India Consumer

Products (ICP) segments of Pharma and an enhanced retail-focused lending book.

Reiterate Buy.

Shareholding pattern (%)

As On

Promoter

DII

FII

Others

Dec-20

46.1

10.5

29.3

14.1

PP has entered an agreement to acquire a 100% stake in Hemmo

Pharmaceuticals (Hemmo) for an upfront consideration of INR7.7b and earn-

outs based on the achievement of milestones. Hemmo posted 20%+ YoY growth

11.2

in 11MFY21 on FY20 sales. This implies 11MFY21 sales at INR1.1b. PP has guided

1.1

to achieve 3x FY20 revenue over the next few years. The profitability of PP’s

3.1

overall Pharma segment would improve given the Hemmo business is at a

higher level than PP’s company-level margins in the Pharma segment.

Acquisition details

Sep-20 Dec-19

46.1

10.2

9.9

29.7

29.9

14.1

14.2

Hemmo leads addition of peptide-related chemistry skill set to PP’s

CDMO offerings

FII Includes depository receipts

Stock performance (one-year)

Piramal Enterp.

Sensex - Rebased

2,175

1,900

1,625

1,350

1,075

800

44 peptide molecules have been commercialized to date at the industry level.

However, the utilization of peptides as therapeutics has evolved over time and

continues to evolve with changes in drug development and treatment

paradigms. Accordingly, there are a huge number of peptide-based products

under clinical stages, which provides strong opportunity in the CDMO space. The

Peptide API industry is expected to grow 6–8% YoY over the next 3–4 years from

the current size of USD2b. Hemmo’s large knowledge base in development and

manufacturing would considerably support CDMO offerings by PP to its

customers globally.

Valuation and view

We believe that a) the enhanced offerings in services related to R&D as well as

commercial manufacturing, b) niche portfolio of hospital products, c) strong

brand portfolio, and d) expanding field force / distribution reach across India

would drive a 19% sales CAGR and 27% EBITDA CAGR in the Pharma business of

PIEL. We have raised the Pharma segment EBITDA of PIEL by 5%/6% for

FY22/FY23E after factoring in the acquisition.

Research Analyst:

Alpesh Mehta

(Alpesh.Mehta@MotilalOswal.com)

Tushar Manudhane

(Tushar.Manudhane@motilaloswal.com)

Piran Engineer

(Piran.Engineer@MotilalOswal.com) /

Nitin Aggarwal

(Nitin.Aggarwal@MotilalOswal.com)

8 August 2020

Investors are advised to refer through important disclosures made at the last page of the Research Report.

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Piramal Enterprises

Over the last 1–2 years, PIEL has curtailed disbursements in Wholesale Lending and

reduced exposure to its top 10 clients by over 25%. This cautious stance is likely to

continue over the next few quarters too, while the company looks to ramp up its

Retail Lending business. The DHFL acquisition is value-accretive and would offer a

ready platform to expand its Retail Lending products. While it is still early days, the

initial asset quality outcome, post the lifting of the moratorium on term loan EMIs,

has been positive. As the economic scenario gets better, asset quality is likely to

improve – this would have a second-order impact on availability and cost of debt

capital.

We value PIEL on an SOTP basis to arrive at target price of INR2,210. Reiterate Buy.

Exhibit 1: SOTP-based price target

Lending Business

Pharma Business

Shriram Group

Unallocated NW

Total Value

Current market cap.

Upside (%)

Value

(INR B)

211

191

524

424

23.7

Value

(USD B)

2.8

2.6

0.7

0.9

7.0

5.6

23.7

INR per

890

807

227

286

2,210

1,786

23.7

% To

Total

100

Rationale

1.0x PBV

Pharma EV/EBITDA 16x; EV of INR288b; 80% Stake; 20% Holdco dis

Based on our TP for SHTF and SCUF

1x PBV (Net of DTA, OCI and Shriram Group allocated NW)

Implied 1.3x Consolidated BV

Source: Company, MOFSL

Exhibit 2: CDMO companies command higher valuations v/s generic pharma companies

Divi's

Gland Pharma

Syngene

Mcap

(USDm)

13,084

5,508

3,050

Mcap

(USDm)

42,409

2,698

56,902

FY21E

47.6x

42.5x

60.7x

CY21E

40.7x

31.9x

151.1x

P/E (x)

FY22E

36.8x

33.8x

47.0x

P/E (x)

CY22E

35.8x

26.7x

105.8x

FY23E

28.4x

26.6x

36.0x

CY23E

31.0x

23.8x

68.7x

EV/EBITDA (x)

FY21E

FY22E

32.6x

25.6x

30.0x

24.0x

32.9x

26.0x

EV/EBITDA (x)

CY21E

CY22E

26.9x

23.4x

14.3x

13.3x

106.0x

73.6x

FY23E

20.0x

18.5x

20.9x

CY23E

20.6x

14.5x

52.9x

Lonza

Recipharm

Wuxi Pharma

EV/SALES (x)

FY21E

FY22E

FY23E

13.7x

11.0x

8.7x

10.9x

8.8x

7.1x

3.9x

3.3x

2.7x

EV/SALES (x)

CY21E

CY22E

CY23E

9.4x

8.5x

7.6x

3.1x

3.0x

47.6x

33.5x

23.9x

Source: MOFSL, Bloomberg

3 April 2021

Piramal Enterprises

About Hemmo Pharma



Hemmo Pharma is India’s first and largest manufacturer of synthetic peptides.

Hemmo has been in the business of peptides for 38 years now, catering to the

Pharmaceutical, Research, and Veterinary industries on a global level.

Particularly, it is ranked as the leading supplier of bulk oxytocin globally. Hemmo

has a team of 250+ well-trained and highly committed staff, including six PhDs,

100+ chemistry graduates and postgraduates, and four engineers. Additionally,

Hemmo has a world-class manufacturing facility with a large manufacturing

capacity, which has been inspected by the USFDA thrice, in addition to

inspections by other regulatory bodies.

Exhibit 3: Hemmo Pharma has 24 developed APIs and nine products under development

Developed Products

Product

Description

Abaloparatide



Parathyroid hormone-related protein (PTHrP) for treating osteoporosis

ACTH



Adrenocorticotropic hormone used in conditions of primary adrenal insufficiency

Atosiban



Inhibitor of oxytocin and vasopressin and used to halt premature labor

Bivalirudin



Anticoagulant to treat unstable angina and percutaneous coronary intervention

Buserelin



A GnRH analog used to treat hormone-dependent prostate cancer and endometriosis

Calcitonin



A 32 amino acid linear polypeptide hormone used in the treatment of osteoporosis

Carbetocin



Obstetric drug used to control postpartum hemorrhage, bleeding after giving birth

Cetrorelix



Synthetic decapeptide to treat hormone-sensitive cancers and benign gynecological disorders

Decapeptide



Polypeptide that acts as a basic fibroblast growth factor used in the treatment for vitiligo

Degarelix



A hormonal therapy used in the treatment of prostate cancer

Desmopressin



A vasopressin analog to treat nocturnal enuresis in children and diabetes insipidus

Eptifibatide



An antiplatelet drug used in the management of percutaneous coronary intervention

Glatiramer



Immunomodulator used in the treatment of multiple sclerosis

Gonadorelin



Gonadorelin used in the human and veterinary fields

Goserelin



Used in breast and prostate cancer treatments to suppress hormone production

Leuprolide



A GnRH analog used to treat prostatic and breast cancers, endometriosis, and precocious puberty

Linaclotide



Guanylate cyclase-C agonist used in the treatment of Irritable Bowel Syndrome

Octreotide



Used in the treatment of severe watery diarrhea associated with certain types of tumors

Oxytocin



Used in the late stage of pregnancy to induce labor and in pre-eclampsia

Somatostatin



Used in the treatment of giantism and acromegaly

Terlipressin



Prescribed for bleeding esophageal varices, septic shock, hepatorenal syndrome, and low blood pressure

Tetracosactide



A corticotrophin analog used to treat multiple sclerosis, ulcerative colitis, Crohn’s disease, etc.

Triptorelin



A GnRH used to treat hormone-responsive cancers, endometriosis, uterine fibroids, precocious puberty, etc.

Vasopressin



A neurohypophysial hormone used in the treatment of diabetes insipidus

Products Under Development

Product

Description

Glucagon



A peptide hormone used for hypoglycemia to raise the concentration of glucose in the bloodstream

Icatibant



A peptidomimetic drug for the symptomatic treatment of acute attacks of hereditary angioedema

Liraglutide



Peptide-1 receptor agonist that stimulates insulin secretion in the treatment of type 2 diabetes

Semaglutide



A glucagon-like peptide-1 that lowers the blood sugar level by increasing the production of insulin

Tesamorelin



A growth-hormone-releasing hormone used in the treatment of HIV-associated lipodystrophy

Histrelin



A GnRH indicated for the treatment of children with central precocious puberty

Lanreotide



Used in the treatment of acromegaly and polycystic liver disease

Plecanatide



A guanylate cyclase-C antagonist used to treat chronic idiopathic constipation (CIC) and Irritable Bowel Syndrome

Sincalide



8-amino acid C-terminal fragment of cholecystokinin used in the diagnosis of gallbladder and pancreatic disorders

Source: MOFSL, Company

Peptide API industry to reach USD3b by 2025



Global Peptide API is an estimated USD2b industry in 2020 and is growing at a

~8% CAGR. Peptides are biological molecules consisting of a chain of 2–50 amino

acids. Larger chains of more than 50 amino acids are called proteins.

Accordingly, peptides are complex chemistry between small molecules and large

molecules. The specificity and toxicity demonstrated by peptides are

3 April 2021

Piramal Enterprises



comparable with that of large molecules, driving considerable R&D in the

Peptide space.

Peptides are used in almost all therapeutic segments today, ranging from anti-

inflammatory to cancers. In the past decade, their use has increased in the

treatment of cancers, diabetes, and obesity.

Exhibit 5: NAM – biggest market for peptide API

Global peptide API market by geography (2018)

2.9

LATAM RoW

Asia Pacific

16%

Exhibit 4: Global Peptide API market to grow at ~8% CAGR

Global peptide API market size (USDb)

1.8

2.0

Europe

29%

2018

2020E

2025E

Source: MOFSL, Company



North

America

(NAM)

48%

Source: MOFSL, Company



The developed markets of North America and Europe account for 75% market

share of the global Peptide API markets.

In value terms, Europe, which accounts for 29% of global peptide API sales, is

expected to show the highest growth at a ~8% CAGR over 2018–25. In terms of

volume, APAC is expected to grow at a CAGR of 10.1%.

Corden Pharma, AmbioPharm, Lonza, Almac, Bachem, and CBL are among the

largest global players in the Peptide API market, while Hemmo Pharma, Neuland

Labs, and Solara Active APIs are some Indian companies with capabilities to

develop and manufacture peptide APIs.

Hemmo acquisition to synergize with CDMO business of PP



The acquisition of Hemmo Pharma allows PP to not only offer new services but

also add new clientele, and presents cross-selling opportunities for PP.

Hemmo Pharma has a mix of under-development and commercialized products.

Hemmo Pharma supplies to PPL’s current customers, and with the acquisition, it

provides PP with the opportunity to offer integrated projects – this could lead to

larger wallet share in customers and higher client retention.

With the added capability in peptides and the scope for more integrated

projects, PP expects revenues to grow 3x in the medium term. This would also

provide scope for margin expansion for PP as Hemmo’s current gross and

EBITDA margins are higher than those of PPL.

The emerging Biopharma industry forms the biggest client segment,

contributing 35% to total CDMO revenues in FY20. Generics contributed 32%

and Big Pharma contributed 25% to revenues. PP has a 500+ strong customer

base and boasts a 50%+ win rate in proposals. Client concentration is also very

low, with the Top 3 clients contributing just 15% to revenues and the Top 10

clients contributing 36% to revenues.

3 April 2021

Piramal Enterprises

Exhibit 6: US – biggest geography for PP in CDMO

CDMO Revenue break-up by geography (FY20)

Others

Japan

India

17%

45%

Europe

29%

Source: MOFSL, Company

Exhibit 7: Emerging Biopharma – the biggest client

CDMO Revenue break-up by clients (FY20)

Big Pharma

25%

Emerging

Biopharma

35%

Others

Generics

32%

Source: MOFSL, Company

CDMO segment performs well for PP despite COVID-led disruptions



CDMO revenues grew at a CAGR of 13% to reach INR31.5b over FY11–20. In

9MFY21, CDMO revenues grew 10% YoY to INR23b, despite COVID-related

decline in 1QFY21. Currently, commercial manufacturing contributes the most

to CDMO revenues (69%), followed by Development Services (27%), with Drug

Discovery Services forming a small portion of revenues.

~42% of PP’s CDMO order book is from integrated projects, which have grown

2.5x – to 33 in 9MFY21 from 13 in FY17. PP has a track record of executing 125+

integrated projects in CDMO.

95% of its sales in CDMO come from the US and Europe, with 90%+ repeat

business, which speaks volumes about client confidence in its capabilities and

project execution. It has 120+ molecules currently in the clinical trials phase and

the capability to manufacture 50+ APIs and 65+ FDFs across therapeutic areas.

3 April 2021

Piramal Enterprises

Financials and valuations

INCOME STATEMENT

Revenues

Change (%)

HealthCare

Financial Services

Info Mgmt

Others

EBITDA*

Change (%)

HealthCare

Financial Services #

Info Mgmt

EBIT*

Change (%)

HealthCare

Financial Services #

Info Mgmt

Unallocated Inc/(Exp)

Core PBT

Change (%)

Exceptional Items

Reported PBT

Taxes

Tax Rate (%)

PAT

Change (%)

Minority Interest

Share from Asso. Co

PAT Post MI

Change (%)

Dividend (Including Tax)

BALANCE SHEET

Y/E MARCH

Equity Share Capital

Reserves (Ex OCI)

Networth

OCI

Networth

Change (%)

Borrowings

Change (%)

Other liabilities

Change (%)

Total Liabilities

Loans+Investments

Change (%)

Goodwill

Fixed Assets

Other assets

Change (%)

Total Assets

FY16

63,815

24.6

34,670

17,397

11,559

188

13,726

57.8

3,266

8,185

2,276

11,172

92.6

1,151

8,159

1,862

-4,028

7,144

110.6

457

7,600

495

6.5

7,105

-73.6

1,942

9,047

-68.3

3,635

FY17

85,468

33.9

38,927

33,515

12,224

802

21,007

53.0

6,028

12,837

2,143

17,190

53.9

3,124

12,813

1,254

-3,988

13,202

84.8

-99

13,103

2,281

17.4

10,821

52.3

-3

1,699

12,523

38.4

4,348

FY18

106,394

24.5

43,220

49,816

12,092

1,266

29,611

41.0

8,001

19,933

1,677

24,838

44.5

4,244

19,897

697

-5,200

19,638

48.7

19,638

6,928

35.3

12,710

17.5

2,801

15,511

23.9

5,415

FY19

132,153

24.2

47,860

70,634

13,322

337

36,582

23.5

9,809

24,507

2,266

31,380

26.3

5,880

24,431

1,069

-6,605

24,775

26.2

-4,656

20,119

8,611

42.8

11,507

-9.5

3,194

14,701

-5.2

6,065

FY20

130,683

-1.1

54,189

76,494

17,889

-51.1

14,336

3,553

12,686

-59.6

9,208

3,478

-3,510

9,176

-63.0

9,176

19,604

213.7

-10,429

-190.6

4,896

-5,533

-137.6

3,500

FY21E

127,022

-2.8

53,593

73,429

35,041

95.9

10,719

24,322

29,663

133.8

5,341

24,322

490

30,153

228.6

30,153

7,538

25.0

22,614

-316.8

4,364

26,978

-587.6

9,442

FY22E

136,111

7.2

65,271

70,840

38,961

11.2

14,360

24,602

33,333

12.4

8,732

24,602

488

33,821

12.2

33,821

8,455

25.0

25,365

12.2

5,339

30,705

13.8

10,747

INR m

FY23E

155,443

14.2

75,538

79,905

47,884

22.9

17,374

30,511

42,006

26.0

11,496

30,511

488

42,494

25.6

42,494

10,623

25.0

31,870

25.6

5,981

37,851

23.3

13,248

INR m

FY23E

474

401,409

401,883

18,430

420,313

6.2

527,168

15.0

37,437

16.9

984,918

618,814

13.9

11,391

78,520

276,193

5.9

984,918

FY16

345

121,102

121,447

8,037

129,484

-3.6

162,788

126.5

17,526

26.0

309,798

198,500

57.9

54,854

23,949

32,495

22.2

309,798

FY17

345

133,609

133,954

14,872

148,826

14.9

304,510

87.1

29,058

65.8

482,394

325,163

63.8

54,272

54,251

48,707

49.9

482,394

FY18

424

243,287

243,711

21,977

265,688

78.5

441,608

45.0

20,708

-28.7

728,004

514,984

58.4

56,326

57,402

99,293

103.9

728,004

FY19

424

253,732

254,156

18,430

272,586

2.6

559,867

26.8

23,808

15.0

856,261

645,325

25.3

59,395

57,510

94,032

-5.3

856,261

FY20

451

286,835

287,286

18,430

305,716

12.2

419,562

-25.1

23,808

0.0

749,086

548,231

-15.0

11,391

57,935

131,529

39.9

749,086

FY21E

451

339,371

339,822

18,430

358,252

17.2

413,571

-1.4

27,197

14.2

799,020

497,268

-9.3

11,391

63,729

226,633

72.3

799,020

FY22E

474

376,806

377,280

18,430

395,710

10.5

458,407

10.8

32,013

17.7

886,130

543,134

9.2

11,391

70,739

260,866

15.1

886,130

3 April 2021

Piramal Enterprises

Financials and valuations

Profitability Ratios (%)

EBITDA Margin - IT

EBITDA Margin - Pharma

Core ROE

ROE

Valuations

Book Value (INR)

BV Growth (%)

Price-BV (x)

EPS (INR)

EPS Growth (%)

Price-Earnings (x)

DPS (INR)

Dividend Yield (%)

FY16

19.7

9.4

5.5

7.5

FY17

17.5

15.5

9.8

FY18

13.9

18.5

8.2

FY19

17.0

20.5

5.9

FY20

26.5

-2.0

FY21E

20.0

8.6

FY22E

22.0

8.6

FY23E

23.0

9.7

704

1.0

-68.3

776

10.3

38.4

1,148

47.9

0.7

1,198

4.3

-5.2

1,274

6.4

1.4

-25

-135.4

-72.8

0.7

1,507

18.3

1.2

120

-587.6

14.9

2.3

1,591

5.6

1.1

129

8.3

13.8

2.5

1,695

6.5

1.1

160

23.3

11.2

3.1

3 April 2021

Piramal Enterprises

NOTES

3 April 2021

Piramal Enterprises

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

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

********************************************************************************************************************************

3 April 2021

Piramal Enterprises

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,

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.

3 April 2021