Motilal Oswal Financial Services

12 April 2021

Update | Sector: Oil & Gas

Indigo

Neutral

BSE SENSEX

47,883

S&P CNX

14,311

CMP: INR1,589



Post-COVID recovery hits an air pocket

TP: INR1,530 (-4%)

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

12M Avg Val (INR M)

Free float (%)

INDIGO IN

384

611.5 / 8.1

1822 / 850



1/-3/-1

2950

25.2



2023E

422.3

103.0

36.8

95.6

132.7

-3.2

105.4

36.4

12.0

16.7

12.1

4.7

0.6

Financials & Valuations (INR b)

Y/E March

2021E 2022E

Sales

143.4 345.5

EBITDAR

3.8 78.9

-55.2 17.3

EPS (INR)

-143.5 45.1

BV/Sh (INR)

9.0 48.6

Ratios

Net D:E

21.3

-3.1

RoE (%)

-177.8 156.5

RoCE (%)

-17.7 19.6

Payout (%)

0.0 12.0

Valuations

P/E (x)

-11.1 35.5

P/BV (x)

178.5 32.9

Adj.EV/EBITDAR(x) 186.8

7.4

Div. Yield (%)

0.0

0.3



The recent spike in COVID-19 cases in India weighs heavily on the Aviation sector,

with flyers confidence tanking, leading to further delays in the recovery of

demand. Daily passenger demand dropped by ~13% to ~246,600 passengers in the

last week of Mar’21 (v/s the last week of Feb’21 – when the peak was recorded),

resulting in no MoM improvement in traffic (still down ~37% to pre-COVID levels).

In Apr’21, demand further fell by ~5% from the last week’s average of Mar’21 to

~233,000 passengers per day.

As per our airfare tracker, yields in Mar’21 increased by 2-5% MoM, but down 13-

14% QoQ in 4QFY21. This is despite the upward revisions in the floor of airfare

bands in Feb’21 by 10% and again in Mar’21 by 5%.

The aforementioned two anomalies are in line with our Jan’21 report (Deep-dive

analysis – airfares and passenger demand)

and could be answered with rapid

vaccination in the country, reviving confidence and thus demand. A spike in crude

oil prices during 4QFY21 has further added to the negative sentiment.

Currently, around one-third of total states in India have imposed further

lockdowns/restrictions

–

but operations in the sector have not been curbed. We

keep our assumptions unchanged for now, with estimates of traffic recovering to

pre-COVID levels by end of 3QFY22E. We reiterate our neutral stance on INDIGO –

with the possibility of further delays in the recovery to pre-COVID levels.

Non-metro routes are leading the recovery



Shareholding pattern (%)

As On

Promoter

DII

FII

Others

Dec-20 Sep-20 Dec-19

74.9

5.6

7.7

5.7

17.3

14.8

15.3

2.2

2.7

4.2

Yields to improve as more regional airports are connected



As per the recently concluded winter CY20-21 schedule (exhibit 6),

North

and East India is leading the recovery (back to 58-62% of pre-COVID levels),

while West and South lag behind (47-52% of pre-COVID levels). The share

of metro-to-metro routes has fallen to 20% (from 23% last year),

while the

share of connectivity to non-metro routes has increased (exhibit 5).

As highlighted in Exhibit 3-4, the percentage mix of flights and passengers

has moved away from dominant Western and Southern region to the North

and Eastern region of India.

Share of aircraft movement in the Western and

Southern region decreased to ~53% in FY21 v/s ~57% in FY20, while

passenger share fell to ~50% from ~56% respectively.

FII Includes depository receipts

Performance (1-year)

Interglobe Aviat

1,850

1,550

1,250

950

650

Sensex - Rebased

Swarnendu Bhushan- Research Analyst

(Swarnendu.Bhushan@MotilalOswal.com)

Sarfraz Bhimani - Research Analyst

(Sarfraz.Bhimani@MotilalOswal.com)

Airfares in India peaked at the end of Oct’20 (up ~50% v/s Jan’20), led by

imposition of airfare bands by MoCA as airline operations restarted after the

lifting of COVID-related lockdown norms. Since then, fares have failed to

sustain (as soon as passenger demand touched ~50% YoY in Nov’20).

That

said, airlines have formulated a plan to cope with falling yields and have

expanded their connectivity to Tier II, III and RCS routes in last 3 months.



INDIGO to start 22 new flights (Feb) 14 new flights under RCS (Mar)



SJET to launch 21 new routes (Jan) 24 new domestic routes (Feb)



In Jan’21, INDIGO had announced to set up seven new regional bases (at

Leh, Darbhanga, Kurnool, Agra, Bareily, Durgapur, and Rajkot).

These new

flights would aid better yields for the airline as it further diversifies the route

mix away from metro-to-metro routes (where the fares have already

peaked). Factoring in the aforementioned, our INDIGO model builds in yields

of INR3.9 for FY22-23E (at ~5% premium to FY16-20 average).

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.

3 September 2019

Indigo



For the summer schedule of CY21, the ministry has connected four new regional

airports (Bareily, Bilaspur, Kurnool and Rupasai). In the last week, it inaugurated

22 new routes under the RCS.

That said, only ~40% of the total RCS routes

awarded (in the last four years) has commenced operations, providing a huge

opportunity for the airlines.

Exhibit 2: …resulting in a 13% QoQ decline, despite MoCA

revising airfare floors upwards twice in 4QFY21

Quarterly average: forward ticketing prices (INR)

30 days

15 days

Exhibit 1: Airfares have failed to sustain and tanked at the

end of Mar’21…

Monthly average: forward ticketing prices (INR - thousand)

30 days

15 days

Jan-

Mar'20

Source: MOFSL

Apr-

Jun'20

Jul-

Sep'20

Oct-

Dec'20

Jan-

Apr-

Mar'21 Jun'td'21

Source: MOFSL

Exhibit 3: In FY21, there has been a clear YoY shift to

Northern and Eastern regions…

Aircraft movement share

3.8

26.0

13.0

32.0

25.3

FY20

4.3

28.5

13.5

31.5

22.2

FY21

Source: AAI, MOFSL

NORTH EAST

NORTHERN

EASTERN

SOUTHERN

WESTERN

Exhibit 4: …and away from Western and Southern regions

both for aircraft movement and passenger demand

Passenger Share

3.5

27.5

13.5

29.9

25.7

FY20

3.9

30.5

15.8

28.8

21.1

FY21

Source: AAI, MOFSL

NORTH EAST

NORTHERN

EASTERN

SOUTHERN

WESTERN

Exhibit 5: Post the lifting of COVID-related lockdown curbs,

share of traffic on non-metro routes have increased…

Routes (%) share - at

the end of winter schedule

FY20

Non-metros to

non-metros

Non-metros to

metros

Metros to non-

metros

Metros to metros

Exhibit 6: …with the recovery in demand, led by North and

East regions of India

Recovery in passenger demand (FY21 v/s FY20) - at

the end of winter schedule FY21

FY21

North

Source: Industry, MOFSL

East

South

West

Central

Source: Industry, MOFSL

12 April 2021

Indigo

Vaccines to boost travelers’ confidence around the globe



Governments around the globe are pacing their vaccination drive to revive the

economy from the impact of the COVID-19 pandemic. Despite various debates

around the efficacy of the vaccines, it has helped curb a patient’s admission to

the hospital and prevented death. The resultant increase in confidence is likely

to boost the economy, with the opening up of institutions, and travel demand.

To put this into perspective, around three months after the start of vaccinations

in the US (~32% of the US population has received at least one vaccine dose):

demand for domestic travel improved to 66% of pre-COVID levels (from 39% in

Jan’21). Demand for international travel is gradually improving (at 32% of pre-

COVID levels v/s 16% in Jan’21).

For now, tickets are mostly being sold to

leisure destinations in Latin America and the Caribbean.

Recovery of international traffic is still contingent on the situation in other

countries.

For India (refer Exhibit 9), only 16% of international inbound and

outbound passengers are from the US and Europe, while the majority are from

developing nations, where achieving 70% vaccination may take some more

time than developed nations, further delaying demand recovery in India

(refer

exhibit 15 – for estimated shortage in global production of vaccines for CY21).

The US recently allowed those who are fully vaccinated to travel freely

without tests and quarantine into the country.

It is looking to vaccinate ~70%

of its population as early as May-Jun’21. The same for Europe stands at Jul-

Aug’21. Even in India, ~5% of the population has been vaccinated, although the

high population may be a huge constraint in reaching the target.

Departure passengers ('000)

Exhibit 7: Domestic passenger demand remains flat MoM in Mar’21 (still down 37% from pre-COVID levels)

Passenger per flight

400

300

200

100

Source: MoCA, MOFSL

Exhibit 8: Vaccination has led to a spike in air travel demand

in the US on the back of increased confidence

US Domestic

US International

Exhibit 9: International travel in India may take time to

recover as passenger mix is more from developing nations

The Americas

Asia Pacific

13%

Africa and Middle East

Europe

13%

33%

51%

Outbound international

passenger

Source: DGCA, MOFSL

39%

16%

Jan'21

50%

20%

Feb'21

66%

32%

52%

Inbound international

passenger

Mar'21

Source: IATA, MOFSL

12 April 2021

Indigo

COVID update – spike in new cases and vaccination administered

Exhibit 1: Top six countries account for 55% of global cases

Share of daily cases by country

India

19%

Others

43%

Brazil

Poland

France

14%

Turkey

United 8%

States

Others,

26.4%

MH, 49.0%

CT, 7.6%

Exhibit 2: Six states account for ~74% of daily cases (In India)

Share of daily cases by state

DL, 3.7%

TN, 3.8%

UP, 4.1%

KA, 5.5%

Source: MOFSL, Covid19India.org

Exhibit 3: India: ~6% vaccine doses administered thus far

Vaccinations in India

Covishield

5% Covaxin

Exhibit 4: India State wise doses and population covered

Total Doses administered (mn)

9.0

8.0

Population (mn)

11.6%

14%

12%

10.8%

6.4%

7.0

9.1%

6.4% 6.8%

3.1%

5.2%

10%

6.0

5.0

4.0

3.0

2.7%

2.0

Unvaccinated

94%

Source: GOI, MOFSL

1.0

8.1

7.7

7.3

7.2

6.5

4.8

4.5

4.0

3.6

0.0

*assuming 1 dose per person Source: GOI, MOFSL

Exhibit 5: Global population vaccinated - while estimated…

Global Covid Vaccinations currently

Received

atleast one

dose

Unvaccinated

92%

Exhibit 6: …shortage of vaccine globally is 2b doses for CY21

Covid vaccine supply and demand (mn doses)

11,541

9,449

413

Vaccine Production

Forecasted

Demand for CY21

till date

production for CY21

(for 75%

vaccination)

Source: Airfinity, MOFSL

Exhibit 7: Case study: Israel witnesses decline in daily cases

Confirmed daily new COVID cases in Israel

11,934

9,078

177

Exhibit 8: …as ~56% of Israel completely vaccinated

% population administered with 1+ dose

% population administered with 2 doses

60.9%

55.9%

Source: JHU, MOFSL

12 April 2021

Indigo

Maintain neutral stance on INDIGO



We believe (in line with the opinion of various industry experts/airlines) the

permanent enforcement of fare bands could be a huge dampener for the

Aviation industry. India has a huge order book of over 500 planes coming in over

the next 3-4 years. With domestic air travel demand being extremely elastic to

rail journeys, Airlines will have to compete on fares to fill their seats.

Crude oil prices have seen a sharp increase to ~USD65/bbl. However, we don’t

expect prices to sustain above USD60/bbl as: a) production cuts from OPEC+

normalizes further (from ~8mnbopd currently), and b) oil production from US

increases (which is still down 1.8mnbopd YoY in Jan’21).

For every USD5/bbl

change in crude oil prices, INDIGO’s EPS changes by ~20%.

INDIGO’s plan to replace older CEO aircraft with NEO aircraft by Dec’22 would

result in fuel savings of ~15% and margin expansion. It has already replaced 12

CEO aircrafts and added 26 NEO aircrafts in 9MFY21, reducing the mix of CEO

aircrafts in its total fleet to ~39% v/s ~47% at the end of FY20.

Market share for INDIGO has declined to ~54% in Feb’21 from 60% in Jun-

Aug’20 (owing to slow start of operations by other players). We forecast its

market share to normalize at pre-COVID levels of 49-50% going forward as SJET

boosts operations (recently,

SJET signed a deal for SLB of 50 new aircrafts),

likely

privatization of Air India, and resumption in Jet airways’ operations.

INDIGO’s cash burn reduced to INR150m in 3QFY21 with improvement in

operational parameters (from ~INR300m in 1QFY21 amid the closure of airline

operations).

At the end of the quarter, INDIGO had total cash of INR183.7b (free

cash of INR74.5b; restricted cash of INR109.2b). We value INDIGO at 16x FY23

EPS of INR95 to arrive at a target price of INR1,530. Maintain Neutral.

Y/E March

Exhibit 9: Key assumptions

FY16

42,826

35,968

1,40,626

3.9

20,773

1,61,399

3.8

3.1

0.7

2.0

1.8

FY17

54,583

46,288

1,61,971

3.5

23,834

1,85,805

3.4

3.0

0.4

1.8

1.6

FY18

63,510

55,524

1,99,433

3.6

30,776

2,30,209

3.6

3.1

0.5

1.9

1.7

FY19

81,016

69,787

2,51,359

3.6

33,609

2,84,968

3.5

0.0

2.0

1.5

FY20

96,300

82,600

3,14,682

3.8

42,878

3,57,560

3.7

0.0

2.4

1.3

FY21E

45,621

-53

32,027

-61

1,18,500

3.7

24,885

1,43,385

3.1

4.4

-1.2

3.6

-0.4

FY22E

95,460

109

76,368

138

2,97,835

3.9

47,654

3,45,489

FY23E

1,09,813

93,341

3,64,031

3.9

58,245

4,22,276

ASK (millions)

YoY (%)

Load Factor (%)

RPK (millions)

YoY (%)

Revenue Calculation

Ticket Revenue (INRm)

Yield (INR/RPK)

Ancillary revenues (inc others)

Total Revenue (INR mn)

Spreads

RASK

CASK

RASK-CASK

CASK-ex fuel

RASK-CASK (ex-fuel)

3.6

3.8

3.4

0.2

0.4

2.4

2.3

1.2

1.5

Source: MOFSL

12 April 2021

Indigo

Financials and Valuation

Standalone - Income Statement

Y/E March

Total Income from Operations

YoY Chg (%)

EBITDAR

Margin (%)

Aircraft & Engine Lease Rentals

EBITDA

Margin (%)

Depreciation

EBIT

Int. and Finance Charges

Other Income

PBT

PBT after EO Exp.

Tax

Tax Rate (%)

Reported PAT

Change (%)

Margin (%)

FY16

1,61,399

15.9

56,176

34.8

26,122

30,055

18.6

5,031

25,024

1,349

4,614

28,290

8,392

29.7

19,897

52.1

12.3

FY17

1,85,805

15.1

52,687

28.4

31,254

21,433

11.5

4,573

16,861

3,308

7,891

21,443

4,852

22.6

16,592

-16.6

8.9

FY18

2,30,209

23.9

65,667

28.5

36,102

29,565

12.8

4,369

25,196

3,398

9,469

31,267

8,843

28.3

22,424

35.1

9.7

FY19

2,84,968

23.8

47,940

16.8

49,994

-2,055

-0.7

7,596

-9,651

5,090

13,248

-1,492

-3,052

204.5

1,560

-93.0

0.5

FY20

3,57,560

25.5

45,348

12.7

4,967

40,382

11.3

39,736

645

18,759

15,362

-2,751

-269

9.8

-2,482

-259.1

-0.7

FY21

1,43,385

-59.9

3,796

2.6

2,957

839

0.6

45,699

-44,859

21,500

11,181

-55,178

0.0

-55,178

2,123.6

-38.5

FY22E

3,45,489

141.0

78,926

22.8

3,818

75,108

21.7

45,823

29,285

21,500

15,370

23,155

5,828

25.2

17,327

-131.4

5.0

(INR M)

FY23E

4,22,276

22.2

1,03,034

24.4

4,393

98,641

23.4

45,848

52,794

21,500

17,826

49,119

12,363

25.2

36,756

112.1

8.7

Standalone - Balance Sheet

Y/E March

Equity Share Capital

Total Reserves

Net Worth

Total Loans

Capital Employed

Gross Block

Less: Accum. Deprn.

Net Fixed Assets

Total Investments

Curr. Assets, Loans&Adv.

Inventory

Account Receivables

Cash and Bank Balance

Loans and Advances

Curr. Liability & Prov.

Account Payables

Other Current Liabilities

Net Current Assets

Appl. of Funds

E: MOFSL Estimates

FY16

3,604

23,628

27,232

30,071

58,770

53,251

5,777

47,474

9,862

68,614

763

1,571

37,187

29,093

67,417

7,412

58,575

1,197

58,770

FY17

3,615

34,177

37,792

23,957

63,367

46,432

8,493

37,938

37,134

76,792

1,632

1,587

46,325

27,248

88,730

7,746

79,093

-11,938

63,367

FY18

3,844

66,930

70,774

22,414

96,883

57,906

12,862

45,043

63,440

1,02,516

1,832

2,263

65,806

32,614

1,14,410

10,002

1,01,407

-11,894

96,884

FY19

3,844

65,604

69,448

21,937

92,029

77,078

20,458

56,620

65,167

1,28,110

2,114

3,625

86,064

36,307

1,58,089

14,552

1,39,164

-29,979

92,029

FY20

3,848

54,776

58,624

1,59,257

2,17,881

2,27,976

60,194

1,67,782

94,994

1,56,416

2,861

2,596

1,08,294

42,665

2,02,603

15,655

1,67,465

-46,187

2,17,881

FY21

3,848

-402

3,446

1,59,257

1,62,703

2,29,010

1,05,893

1,23,117

94,994

1,05,256

1,279

1,041

85,827

17,109

1,60,923

6,999

1,53,924

-55,666

1,62,703

FY22E

3,848

14,843

18,691

1,59,257

1,77,948

2,29,217

1,51,716

77,502

94,994

2,63,365

2,443

2,508

2,17,189

41,225

2,57,963

13,366

2,43,557

5,401

1,77,948

(INR M)

FY23E

3,848

47,182

51,030

1,59,257

2,10,287

2,29,259

1,97,563

31,695

94,994

3,77,289

2,926

3,066

3,20,910

50,387

2,93,701

16,007

2,75,485

83,588

2,10,287

12 April 2021

Indigo

Financials and Valuation

Ratios

Y/E March

Basic (INR)

EPS

Cash EPS

BV/Share

DPS

Payout incl. tax (%)

Valuation (x)

P/E

Cash P/E

EV/Sales

Adj. EV/EBITDAR

Dividend Yield (%)

FCF Yield (%)

FCF per share

Return Ratios (%)

EBITDA Margins (%)

EBIT Margins (%)

Net Profit Margins (%)

RoE

RoCE

RoIC

Working Capital Ratios

Asset Turnover (x)

Inventory (Days)

Debtor (Days)

Creditor (Days)

Working Cap. Turnover (Days)

FY16

51.8

64.8

70.8

16.9

39.3

30.9

24.7

3.8

14.1

1.1

4.7

75.0

18.6

15.5

12.3

126.6

40.5

115.4

2.7

-81

FY17

43.2

55.1

98.3

32.0

89.0

37.1

29.1

3.2

15.4

2.0

8.3

133.1

11.5

9.1

8.9

51.0

31.4

-295.1

2.9

-114

FY18

58.3

69.7

184.1

6.0

12.4

27.4

23.0

2.5

12.6

0.4

5.6

89.5

12.8

10.9

9.7

41.3

31.0

-68.2

2.4

-123

FY19

4.1

23.8

180.7

5.0

148.1

394.3

67.2

1.9

18.8

0.3

4.1

65.1

-0.7

-3.4

0.5

2.2

-4.0

-21.9

3.1

-149

FY20

-6.5

96.9

152.5

0.0

-247.9

16.5

1.9

15.5

0.0

-11.1

-177.7

11.3

0.2

-0.7

-3.9

9.3

-2.5

1.6

-158

FY21

-143.5

-24.7

9.0

0.0

-11.1

-64.9

4.8

186.8

0.0

-2.0

-31.6

0.6

-31.3

-38.5

-177.8

-17.7

1,767.8

0.9

-360

FY22E

45.1

164.3

48.6

4.5

12.0

35.5

9.7

1.6

7.4

0.3

22.7

363.1

21.7

8.5

5.0

156.5

19.6

-28.7

1.9

-224

FY23E

95.6

214.9

132.7

9.6

12.0

16.7

7.4

1.1

4.7

0.6

18.2

290.9

23.4

12.5

8.7

105.4

36.4

-23.2

2.0

-205

Standalone - Cash Flow Statement

Y/E March

OP/(Loss) before Tax

Depreciation

Interest & Finance Charges

Direct Taxes Paid

(Inc)/Dec in WC

CF from Operations

CF from Operating incl EO

(Inc)/Dec in FA

Free Cash Flow

Others

CF from Investments

Interest Paid

Dividend Paid

CF from Fin. Activity

Inc/Dec of Cash

Opening Balance

Closing Balance

E: MOFSL Estimates

FY16

28,290

5,031

1,157

-5,761

3,081

31,797

31,157

-2,320

28,837

3,344

-1,598

-825

-13,437

-12,366

17,193

19,994

37,187

FY17

21,443

4,573

-4,583

-4,208

21,102

38,326

12,829

51,155

7,891

-6,553

-3,308

-14,769

-22,634

9,139

37,187

46,326

FY18

31,267

4,369

-6,070

-7,905

20,090

41,750

-7,356

34,395

9,469

-24,193

-3,398

-2,772

1,923

19,481

46,326

65,806

FY19

-1,492

7,596

-8,159

3,007

17,309

18,262

6,767

25,029

13,248

18,289

-5,090

-2,310

-16,293

20,257

65,806

86,063

FY20

-2,751

39,736

3,396

-8

92,472

1,32,845

-2,01,171

-68,325

15,362

-2,15,635

-18,759

1,05,020

22,231

86,063

1,08,294

FY21

-55,178

45,699

10,319

-98,149

-97,310

85,162

-12,148

11,181

96,343

-21,500

-22,467

1,08,294

85,827

FY22E

23,155

45,823

6,130

-5,828

73,801

1,43,080

-3,507

1,39,574

15,370

11,863

-21,500

-2,082

-23,582

1,31,362

85,827

2,17,189

(INR M)

FY23E

49,119

45,848

3,674

-12,363

28,994

1,15,271

-3,459

1,11,813

17,826

14,367

-21,500

-4,417

-25,917

1,03,722

2,17,189

3,20,910

12 April 2021

Indigo

NOTES

12 April 2021

Indigo

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

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the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a

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

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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.

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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

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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

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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

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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

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such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and inform MOCMSPL.

Specific Disclosures

1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.

2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company

3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months

4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report

5 Research Analyst has not served as director/officer/employee in the subject company

6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months

8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months

9 MOFSL has not received any compensation or other benefits from third party in connection with the research report

10 MOFSL has not engaged in market making activity for the subject company

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

The associates of MOFSL may have:

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

12 April 2021

Indigo

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.

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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.

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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,

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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

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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

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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.

12 April 2021