5 May 2021
4QFY21 Results Update | Sector: Chemicals
Tata Chemicals
Downgrade to
Neutral
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Financials & Valuations (INR b)
Y/E Mar
2021 2022E
Sales
102.0 114.4
EBITDA
15.0
18.9
PAT
2.6
6.7
EBITDA (%)
14.7
16.6
EPS (INR)
10.1
26.1
EPS Gr. (%)
(68.2) 159.7
BV/Sh. (INR)
561
576
Ratios
Net D/E
0.3
0.2
RoE (%)
1.9
4.6
RoCE (%)
3.1
5.0
Valuations
P/E (x)
70.4
27.1
EV/EBITDA (x)
15.2
11.9
Div Yield (%)
1.4
1.6
FCF Yield (%)
(1.7)
4.7
TTCH IN
255
180.4 / 2.4
834 / 272
-6/113/100
2472
CMP: INR708
Too much optimism built in!
Downgrade to Neutral
TP: INR628 (-11%)
2023E
130.7
24.4
10.6
18.7
41.8
59.8
606
0.2
7.1
6.8
17.0
9.1
1.7
4.7
Tata Chemicals (TTCH)’s consolidated EBITDA came in below our estimates –
largely dragged down by North America (NA) and Europe – due to the
absence of operating leverage and one-time costs.
In the last six months, TTCH has rallied ~126%, whereas the Nifty has
appreciated by ~20%. This outperformance is largely attributable to its plans
to enter into the Energy Science biz. (EV cell manufacturing) – GOI has
announced the PLI incentive for the EV Battery business, but plans are yet to
be finalized (highlighted by the mgmt. during the 4QFY21 call).
These future plans have led to higher valuation multiples; TTCH currently
trades at EV/EBITDA of 11.9x/9.1x FY22/FY23E, implying a premium of
22%/27%/41% to its 3-/5-/10-year average one-year forward EV/EBITDA
multiple.
Execution risk persists in the Energy Science biz, coupled with the risk of
margin pressure due to increasing RM prices; particularly, energy costs in
soda ash pose a risk to near-term performance.
Based on these factors, we downgrade TTCH from Buy to
Neutral.
North America, UK drag down overall performance
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Mar-21 Dec-20 Mar-20
38.0
38.0
34.6
20.8
24.7
34.2
14.0
12.3
9.3
27.2
25.1
21.9
TTCH reported an overall revenue increase of 11% YoY to INR26.4b (v/s est.
INR25.2b) in 4QFY21. The EBITDA margin contracted 610bp YoY to 10.7%
(v/s est. 17%) due to gross margin contraction of 590bp. EBITDA fell 29%
YoY to INR2.8b (v/s est. INR4.3b). Adjusted PAT declined 94% YoY to
INR118m (v/s est. INR1,702m).
Higher gas price (net) of INR450m in 4QFY21, due to the Polar Vortex, was
reported as a one-off item – which impacted EBITDA in its North America
operations. Adjusted for the same, EBITDA was down 18% YoY to INR3.3b.
Revenue / EBITDA / Adjusted PAT declined 2%/23%/68% YoY in FY21.
India’s
standalone revenue grew 15% YoY to INR8.4b. The EBITDA margin
expanded 40bp YoY to 19.5%, and EBITDA grew 17% YoY to INR1.6b. Soda
ash / Salt volumes rose 16%/4% YoY and blended realization 4% YoY.
In
North America (NA),
revenue was largely in-line (+1% YoY) owing to a) 3%
YoY growth in volumes, as exports rose 20% YoY, whereas domestic
volumes declined 12% YoY, and b) currency benefit (+5% YoY). Realization,
on the other hand, fell 6% YoY (to USD192/mt). Reported EBITDA/mt
declined 17% YoY (to USD15), with EBITDA contracting 69% YoY (to
INR630m). This was attributable to (a) higher gas price due to the Polar
Vortex, (b) lower absorption of fixed costs due to lower production, (c)
certain fixed costs from 3QFY21 being carried forward to 4Q, and (d) higher
exports yielding lower margins.
Sumant Kumar
(Sumant.Kumar@motilaloswal.com)
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
Tata Chemicals
In
Europe,
revenue grew 5% YoY on currency benefit (+8% YoY) and improved
blended realization (2% YoY in GBP), offset by 5% decline in sales volumes.
EBITDA de-grew 63% YoY to INR190m on lower realization, higher freight costs,
and higher plant spend due to the floods in Jan’21.
Africa’s
soda ash volumes de-grew 9%, whereas realizations (in USD) grew 5%
YoY and the currency benefit was +5% YoY – leading to flat YoY revenue. EBITDA
was up 82% YoY to INR200m.
Rallis’
revenue was up 38% YoY on higher sales volumes in Crop Care, Seeds,
and the domestic and international businesses. EBITDA stood at INR200m v/s
loss of INR120m last year.
Highlights from management commentary
Soda Ash market:
Demand for soda ash has fully recovered, except for
container glass. While the Container Glass biz remains soft, it is expected to
bounce back fairly soon with the revival in tourism. Several expansion plans in
Soda Ash have been postponed for the next 3–4 years, in turn leading to an
increase in spot prices.
Soda ash royalty reduction:
In CY12, the US government increased the soda ash
royalty rate from 2% to 6%. However, the government recently slashed the rate
(for environmental purposes) from 6% to 2% once again for the next 10 years.
TTCH expects a USD7–10/mt impact on the soda ash pricing. Also, further clarity
is expected once the company has chalked out fresh mining plans.
Capex:
TTCH incurred capex of INR12.5b in FY21, of which (a) INR2.5b was put
toward NA operations, (b) INR2.7b toward Europe, (c) INR1.6b toward Rallis,
and (d) INR5.5b toward India standalone. Capex for FY22 would be at similar
levels.
In the last six months, TTCH has rallied ~126%, whereas the Nifty has
appreciated by ~20%. This outperformance is largely attributable to its plans to
enter into the Energy Science biz. (EV cell manufacturing) – GOI has announced
the PLI incentive for the EV Battery business, but plans are yet to be finalized
(highlighted by the mgmt. during the 4QFY21 call).
On a one-year forward basis, TTCH has historically traded at an avg. EV/EBITDA
of 9.7x/9.3x/8.4x in the last 3/5/10 years. It is now trading at 11.9x FY22
EV/EBITDA, thus implying a premium of 22%/27%/41%. Notably, TTCH’s past
multiples have factored in earnings from the Branded Consumer business (salt
and other consumer sales) – which commands a higher multiple than the
existing Chemicals business. Thus, the implied premium would widen further.
Execution risk persists in the Energy Science biz, coupled with the risk of margin
pressure due to increasing RM prices; particularly, energy costs in soda ash pose
a risk to near-term performance.
Factoring in the current quarter’s performance, we reduce our FY21/FY22
earnings estimates by 25%/6%.
Thus, in our view, optimism on the street around the Energy Science business’
performance is still a long way off. Moreover, near-term concerns of higher RM
prices pose a risk to earnings.
Thus, we downgrade TTCH from Buy to
Neutral,
arriving at SOTP-based TP of
INR628.
Valuation and view
5 May 2021
2
 Motilal Oswal Financial Services
Tata Chemicals
Consolidated - Quarterly Earnings Model
Y/E March
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
Margins (%)
Depreciation
Interest
Other Income
PBT before EO expense
Extra-Ord expense
PBT
Tax
Rate (%)
MI & Profit/Loss of Asso. Cos.
Reported PAT
Adj PAT
YoY Change (%)
Margins (%)
1Q
25,840
-5.8
20,691
5,149
19.9
1,627
941
869
3,450
44
3,406
1,116
32.8
756
1,535
1,579
-26.2
6.1
FY20
FY21
FY20
FY21
2Q
3Q
4Q
1Q
2Q
3Q
4Q
27,713 26,234 23,781 23,482 26,094 26,061 26,362 1,03,535 1,01,998
-6.4
2.1
-7.2
-9.1
-5.8
-0.7
10.9
-4.5
-1.5
22,106 21,499 19,779 19,884 22,231 21,342 23,535
84,076
86,992
5,607 4,735
4,002 3,598 3,863 4,719 2,827
19,492
15,006
20.2
18.0
16.8
15.3
14.8
18.1
10.7
18.8
14.7
1,658 1,641
1,739 1,899 1,924 1,854 1,916
6,665
7,593
869
755
855 1,179
836
809
850
3,419
3,674
901
586
756
587
686
427
645
3,111
2,344
3,981 2,925
2,163 1,107 1,787 2,483
707
12,519
6,084
0
208 -62,367
0
0
0
0 -62,115
0
3,981 2,717 64,531 1,107 1,787 2,483
707
74,634
6,084
212
676
193
358
571
538
511
2,197
1,978
5.3
24.9
0.3
32.3
31.9
21.7
72.3
2.9
32.5
916
580
123
616
512
337
78
2,375
1,542
2,853 1,462 64,215
133
705 1,609
118
70,063
2,564
2,853 1,670
1,847
133
705 1,609
118
7,948
2,564
-11.3
-19.6
-24.3
-91.6
-75.3
-3.7
-93.6
-7.7
-67.7
10.3
6.4
7.8
0.6
2.7
6.2
0.4
7.7
2.5
(INR m)
FY21
Var
4QE
%
25,181
5
5.9
20,911
4,271
-34
17.0
1,930
780
756
2,316
0
2,316
510
22.0
104
1,702
1,702
-93
-7.8
6.8
Key Performance Indicators
Y/E March
Consolidated
Sales Volume (000'MT)
North America
Europe
Africa
EBITDA/MT
North America (USD)
Europe (GBP)
Africa (USD)
Cost Break-up
RM Cost (% of sales)
Staff Cost (% of sales)
Power and Fuel Cost (% of sales)
Freight and Distribution Cost (% of sales)
Other Cost (% of sales)
Gross Margins (%)
EBITDA Margins (%)
EBIT Margins (%)
1Q
539
92
63
50.5
21.9
45.7
17.4
13.3
13.6
15.4
20.3
82.6
19.9
13.6
FY20
2Q
570
104
74
46.6
49.2
52.2
23.2
12.2
12.3
14.1
18.0
76.8
20.2
14.2
3Q
569
97
40
45.7
49.6
-32.0
19.7
13.5
14.3
14.5
20.0
80.3
18.0
11.8
4Q
551
101
75
52.2
56.0
20.7
15.1
14.3
16.0
16.2
21.6
84.9
16.8
9.5
1Q
387
92
57
11.9
32.3
23.1
25.2
14.3
12.1
13.3
19.7
74.8
15.3
7.2
FY21
2Q
475
94
51
26.9
51.4
15.7
27.6
13.5
12.5
13.6
17.9
72.4
14.8
7.4
3Q
474
98
56
44.7
47.8
62.2
20.4
13.6
14.8
14.3
18.7
79.6
18.1
11.0
4Q
FY20
FY21
566
2,229 1,902
96
394
380
68
252
232
15.0
20.4
39.6
21.0
13.5
16.6
15.8
22.4
79.0
10.7
3.5
49.0
39.7
29.9
19.0
13.3
14.0
15.0
19.9
81.0
18.8
12.4
24.7
38.0
35.8
23.5
13.7
14.1
14.3
19.7
76.5
14.7
7.3
5 May 2021
3
 Motilal Oswal Financial Services
Tata Chemicals
Key exhibits
Exhibit 1: Consolidated revenue trend
12% 10%
0%
0%
-6% -6%
Revenue (INRm)
2%
-7% -9% -6%
Growth (%)
-1%
11%
16.0% 17.4%
Exhibit 2: Consolidated EBITDA trend
EBITDA (INRm)
19.9% 20.2%
18.0% 16.8%
Margin (%)
15.3% 14.8%
18.1%
10.7%
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 3: Consolidated adj. PAT trend
Adj. PAT (INRm)
-11%
-20%
-24%
Growth (%)
-4%
1,609
-21%
-57%
-26%
133
2,442
1,579
2,853
1,670
1,847
-92%
-75%
705
118
-94%
2,076
Source: Company, MOFSL
Exhibit 4: Consolidated segmental revenue
INR m
Revenue
Basic Chemistry Products
Specialty Products
Less : Inter segment revenue
Add : Unallocated
Total Revenue
4QFY20
19,987
3,776
9
28
23,781
3QFY21
19,866
6,183
43
55
26,061
4QFY21
21,113
5,196
14
67
26,362
%YoY
5.6%
37.6%
10.9%
%QoQ
6.3%
-16.0%
1.2%
Source: Company, MOFSL
Exhibit 5: Consolidated segmental EBIT
INR m
EBIT
Basic Chemistry Products
Margin %
Specialty Products
Margin %
Total EBIT
Less : Finance Cost
Less : Unallocated (Income)/Expense
PBT
4QFY20
3,544
17.7%
-368
-9.7%
3,176
855
158
2,163
3QFY21
2,981
15.0%
380
6.2%
3,362
809
70
2,483
4QFY21
1,672
7.9%
-126
-2.4%
1,546
850
-11
707
%YoY
-52.8%
-65.8%
-51.3%
-67.3%
%QoQ
-43.9%
-133.0%
-54.0%
-71.5%
Source: Company, MOFSL
5 May 2021
4
 Motilal Oswal Financial Services
Tata Chemicals
Exhibit 6: Standalone operational performance trend
INR m
Soda Ash Sales Volume ('000MT)
Sodium Bicarbonate Sales Vol. ('000MT)
Salt Sales Volume ('000MT)
Realization - Basic Chemistry Products (INR/MT)
Net Sales
EBITDA
EBITDA (%)
PBT
PAT
1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 %YoY %QoQ
163
154
158
159
118
151
168
184 16%
10%
27
27
29
27
21
25
30
31 15%
3%
237
258
271
290
298
295
319
302
4%
-5%
16,576 15,865 15,922 14,777 14,007 14,363 14,790 15,315
4%
4%
7,190
7,080
7,590
7,340
6,280
7,170
8,120
8,410 15%
4%
1,890
1,940
1,950
1,400
1,560
1,160
1,750
1,640 17%
-6%
26.3% 27.4% 25.7% 19.1% 24.8% 16.2% 21.6% 19.5%
2,563
2,123
1,671 63,791
1,423
1,658
1,477
1,582 -98%
7%
2,056
2,114
1,371
1,179
1,088
1,351
1,156
1,196
1%
3%
Source: Company, MOFSL
Exhibit 7: North America operational performance trend
INR m
Soda ash Utilization (%)
Sales Volume ('000MT)
Realization (INR/MT)
Realization (USD/MT)
EBITDA/MT (USD)
Net Sales
EBITDA
EBITDA (%)
PBT
PAT
1QFY20
88%
539
15,677
226
50
8,450
1,890
22.4%
910
470
2QFY20
91%
570
15,544
222
47
8,860
1,860
21.0%
860
460
3QFY20
94%
569
15,325
218
46
8,720
1,830
21.0%
790
400
4QFY20
91%
551
14,519
205
52
8,000
2,040
25.5%
920
790
1QFY21
60%
387
15,995
211
12
6,190
350
5.7%
-1,190
-1,070
2QFY21
72%
475
14,968
199
27
7,110
960
13.5%
-260
-440
3QFY21
79%
474
15,654
210
45
7,420
1,580
21.3%
350
190
4QFY21
87%
566
14,258
192
15
8,070
630
7.8%
-600
-660
%YoY
3%
-2%
-6%
-71%
1%
-69%
-165%
-184%
%QoQ
19%
-9%
-8%
-66%
9%
-60%
-271%
-447%
Source: Company, MOFSL
Exhibit 8: Europe operational performance trend
INR m
Sales Volume ('000MT)
Realization (INR/MT)
Realization (GBP/MT)
EBITDA/MT (GBP)
Net Sales
EBITDA
EBITDA (%)
PBT
PAT
1QFY20
92
33,370
373
22
3,070
180
5.9%
-150
-150
2QFY20
104
32,404
368
49
3,370
450
13.4%
80
80
3QFY20
97
35,876
402
50
3,480
430
12.4%
80
80
4QFY20
101
36,139
401
56
3,650
510
14.0%
130
130
1QFY21
92
34,348
365
32
3,160
280
8.9%
-150
-150
2QFY21
94
35,851
377
51
3,370
460
13.6%
20
20
3QFY21
98
38,163
398
48
3,740
450
12.0%
20
20
4QFY21
96
39,896
411
20
3,830
190
5.0%
-280
-440
%YoY
-5%
10%
2%
-64%
5%
-63%
%QoQ
-2%
5%
3%
-57%
2%
-58%
Source: Company, MOFSL
Exhibit 9: Africa operational performance trend
INR m
Soda ash Utilization (%)
Sales Volume ('000MT)
Realization (INR/MT)
Realization (USD/MT)
EBITDA/MT (USD)
Net Sales
EBITDA
EBITDA (%)
PBT
PAT
1QFY20
90%
63
20,000
288
46
1,260
200
15.9%
90
90
2QFY20
66%
74
18,919
270
52
1,400
270
19.3%
160
160
3QFY20
72%
40
20,500
291
-32
820
-90
-11.0%
-20
-20
4QFY20
71%
75
15,333
216
21
1,150
110
9.6%
-40
-40
1QFY21
65%
57
17,544
231
23
1,000
100
10.0%
-20
-20
2QFY21
74%
51
17,843
238
16
910
60
6.6%
-50
-50
3QFY21
80%
56
19,107
256
62
1,070
260
24.3%
180
180
4QFY21
%YoY
%QoQ
81%
68
-9%
21%
16,912
10%
-11%
228
5%
-11%
40
92%
-36%
1,150
0%
7%
200
82%
-23%
17.4%
100
-350%
-44%
100
-350%
-44%
Source: Company, MOFSL
5 May 2021
5
 Motilal Oswal Financial Services
Tata Chemicals
Exhibit 10: Soda ash volume trend
Source: Company, MOFSL
Exhibit 11: One-year fwd EV/EBITDA (x)
16.0
12.0
8.0
4.0
0.0
EV/EBITDA (x)
Avg (x)
Max (x)
Min (x)
+1SD
-1SD
13.6
8.4
5.8
10.2
6.6
10.2
Source: MOFSL
Exhibit 12: One-year fwd PE (x)
P/E (x)
20.0
14.0
8.0
2.0
Avg (x)
Max (x)
Min (x)
+1SD
-1SD
22.2
20.5
11.6
7.4
2.7
3.1
Source: MOFSL
5 May 2021
6
 Motilal Oswal Financial Services
Tata Chemicals
Conference call highlights
Demand:
TTCH witnessed a strong resurgence in demand across product
segments. The company faced marginal delay of 10–15 days in the supply chain
due to regional lockdowns across the country.
The Detergent and Glass segments reported sharp demand recovery. Container
glass demand recovery remains challenged, but is expected to bounce back
soon.
Margins:
TCNA exports saw a price reduction of USD5, but prices are expected
to move in-line with spot prices, which saw sharp rebound of ~USD25. The
company’s contract prices are expected to reset to market prices (spot prices),
roughly by end of 4QFY22.
US operations:
Profits were muted due to a one-off impact of INR450m in US
operations – caused by the Polar Vortex, which led to the freezing of oil wells,
leading to a sharp rise in gas prices.
UK operations:
Despite steady business, the UK saw soft demand for salt sales
due to strict lockdown. Softness in salt demand is expected to gradually reduce.
Two one-offs were reported in UK operations – a) a tax asset write-off of INR
165m re-financing cost and b) an impact of INR75m due to unseasonal floods.
Magadi:
Magadi margins contracted due to lower realizations. However, the
team at Magadi managed to reduce fixed cost significantly, thereby leading to
profitability.
Capex:
TTCH incurred capex of INR12.5b in FY21, of which (a) INR2.5b was put
toward NA operations, (b) INR2.7b toward Europe, (c) INR1.6b toward Rallis,
and (d) INR5.5b toward India standalone. Capex for FY22 would be at similar
levels.
Lithium-Ion:
There is currently no update on the Lithium-Ion business – the
entire business is under evaluation. The company has received licenses from
CSIR and ISRO, and R&D business operations are continuing. Furthermore, the
Battery Recycling business is reported under the performance material vertical,
and no additional investments are made in this segment.
Soda Ash market:
Demand for soda ash has fully recovered, except for
container glass. The Container Glass biz remains soft, but is expected to bounce
back fairly soon with the revival in tourism. Several expansion plans in Soda Ash
have been postponed for the next 3–4 years, in turn leading to an increase in
spot prices.
US:
Due to a sudden increase in gas prices, TCNA only produced soda ash to the
extent that it was hedged – to reduce the impact of the price increase –
resulting in production decline, despite good demand. An additional INR400m
rise in fixed cost was seen due to the under-absorption of fixed cost on account
of production being lower than sales. Also, certain fixed costs from 3QFY21 were
carried forward to 4Q, which thereby affected the US business performance.
US – export and domestic market:
US export sales have recovered, but prices
are at USD5/mt, lower than previous levels. US domestic soda ash sales were
down on a year-on-year basis – as one of the largest customers moved its
volumes from the domestic to export market, leading to reduced demand in the
Soda Ash business.
5 May 2021
7
 Motilal Oswal Financial Services
Tata Chemicals
Expansion plans:
New capacity in Mithapur and Rallis is expected to lead to 50-
70% growth in the topline on a consolidated basis by 2025.
Volume growth and price revision:
Volume growth is expected to return to
historical levels by end-FY22. Pricing has improved in the export market;
however, due to the annual nature of contractual agreements with customers,
TTCH would be unable to increase prices. Prices are expected to be revised post
the revision of contracts. US prices are expected to improve gradually by end-
FY22.
Soda ash royalty reduction:
In CY12, the US government increased the soda ash
royalty rate from 2% to 6%. However, the government recently slashed the rate
(for environmental purposes) from 6% to 2% once again for the next 10 years.
TTCH expects a USD7–10/mt impact on the soda ash pricing. Also, further clarity
is expected once the company has chalked out fresh mining plans.
Gross debt was INR69.3b as of FY21 v/s INR77b as of FY20. Net debt stood at
INR38.3b as of FY21 v/s INR40.4b as of FY20.
Valuation
In the last six months, TTCH has rallied ~126%, whereas the Nifty has
appreciated by ~20%. This outperformance is largely attributable to its plans to
enter into the Energy Science biz. (EV cell manufacturing) – GOI has announced
the PLI incentive for the EV Battery business, but plans are yet to be finalized
(highlighted by the mgmt. during the 4QFY21 call).
On a one-year forward basis, TTCH has historically traded at an avg. EV/EBITDA
of 9.7x/9.3x/8.4x in the last 3/5/10 years. It is now trading at 11.9x FY22
EV/EBITDA, thus implying a premium of 22%/27%/41%. Notably, TTCH’s past
multiples have factored in earnings from the Branded Consumer business (salt
and other consumer sales) – which commands a higher multiple than the
existing Chemicals business. Thus, the implied premium would widen further.
Execution risk persists in the Energy Science biz, coupled with the risk of margin
pressure due to increasing RM prices; particularly, energy costs in soda ash pose
a risk to near-term performance.
The company enters into quarterly/semi-annual/annual contracts with
customers for its soda ash operations – which formed 67%/73% of FY20
revenue/EBITDA in TTCH’s consolidated business. In North America and the UK,
TTCH enters into contracts wherein prices are set annually/semi-annually. In
India too, prices of major contracts are set annually/semi-annually. Energy cost
– which accounted for 14%/17.2% to revenue/cost in FY20 – surged in 4QFY21
on the back of natural gas / coal prices increasing 79% YoY (40% QoQ) / 13% YoY
(21% QoQ). Thus, higher volatility in RM prices could impact margins.
Factoring in the current quarter’s performance, we reduce our FY21/FY22
earnings estimates by 25%/6%.
Thus, in our view, optimism on the street around the Energy Science business’
performance is still a long way off. Moreover, near-term concerns of higher RM
prices pose a risk to earnings.
Thus, we downgrade TTCH from Buy to
Neutral,
arriving at SOTP-based TP of
INR628.
5 May 2021
8
 Motilal Oswal Financial Services
Tata Chemicals
Exhibit 13: Valuation methodology
Business
Commodity (INR m)
Inorganic Chemical India (Soda Ash & others) (Inc mfg Salt)
Tata Chemicals North America
Tata Chemicals Europe and Tata Chemicals Africa
Sub Total
Specialty and Consumer (INR m)
Rallis India Ltd (Tata Chemicals hold 50% ) (INR m)
Total EV (INR m)
Less: Debt (INR m)
Less: Minority Interest (INR m)
Less: Pension Liability (INR m)
Add: Cash & Liquid investment (INR m)
Add: Value of quoted Investment (INR m)
Target Mcap (INR m)
Outstanding share (m)
Target Price (INR)
Mcap
24,149
0.8
20% discount to Current
MCAP
Attributable
Mcap
56,202
0.8
22,481
1,95,755
62,297
8,526
14,665
30,324
19,319
1,59,910
255
628
Source: MOFSL
EV/EBITDA (x)
EV/EBITDA (x)
EV/EBITDA (x)
EBITDA
EBITDA
EBITDA
9,289
8,135
2,936
8
10
6
74,314
81,346
17,613
1,73,274
Methodology
Metrics
FY23
Multiple (x)
EV/ MCAP
(INR m)
Exhibit 14: Estimate change
Earnings Change
(INR m)
Revenue
EBITDA
Adj. PAT
FY22E
1,13,263
21,440
8,875
Old
FY23E
1,27,663
24,966
11,327
FY22E
1,14,409
18,946
6,658
New
FY23E
1,30,732
24,403
10,640
Change
FY22E
FY23E
1%
2%
-12%
-2%
-25%
-6%
Source: MOFSL
5 May 2021
9
 Motilal Oswal Financial Services
Tata Chemicals
Financials and valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
Total Expenditure
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT - Continuing Ops.
Adjusted PAT - Continuing Ops.
Change (%)
Margin (%)
Reported PAT - Discontinuing Ops.
Reported PAT
Adjusted PAT
FY16
1,52,202
-13.4
1,31,285
20,917
13.7
5,261
15,657
5,255
1,253
11,655
0
11,655
2,484
21.3
2,207
6,964
6,964
-12.5
4.6
742
7,706
7,706
FY17
1,03,461
-32.0
82,518
20,943
20.2
5,122
15,821
2,973
1,661
14,510
0
14,510
3,460
23.8
2,254
8,796
8,796
26.3
8.5
1,135
9,931
9,931
FY18
1,02,697
-0.7
80,790
21,907
21.3
5,180
16,727
3,256
1,595
15,066
643
15,709
601
3.8
2,202
12,906
12,263
39.4
11.9
11,425
24,331
23,687
FY19
1,03,367
0.7
85,563
17,805
17.2
5,685
12,120
3,537
4,095
12,677
703
13,381
2,744
20.5
1,317
9,319
8,615
-29.7
8.3
2,240
11,559
10,856
FY20
1,03,568
0.2
84,076
19,492
18.8
6,665
12,827
3,419
3,111
12,519
0
12,519
2,197
17.5
2,257
8,066
8,066
-6.4
7.8
61,997
70,063
70,063
FY21
1,01,998
-1.5
86,992
15,006
14.7
7,593
7,413
3,674
2,344
6,084
0
6,084
1,978
32.5
1,542
2,564
2,564
-68.2
2.5
0
2,564
2,564
FY22E
1,14,409
12.2
95,463
18,946
16.6
7,792
11,153
3,428
3,089
10,814
0
10,814
2,649
24.5
1,507
6,658
6,658
159.7
5.8
0
6,658
6,658
FY23E
1,30,732
14.3
1,06,329
24,403
18.7
8,242
16,161
3,252
3,399
16,308
0
16,308
3,995
24.5
1,672
10,640
10,640
59.8
8.1
0
10,640
10,640
(INR m)
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Lease liability
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
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
2,548
65,995
68,543
25,985
90,904
0
12,348
1,97,780
1,20,671
5,490
1,15,181
17,619
5,015
94
21,879
83,769
19,319
35,656
12,654
16,140
45,682
16,818
7,923
20,941
38,086
1,97,780
FY17
2,548
76,534
79,082
26,239
70,483
0
12,381
1,88,185
1,20,011
10,612
1,09,400
16,984
3,331
2,205
27,931
78,459
13,861
20,922
16,648
27,028
47,919
13,182
14,117
20,621
30,540
1,88,185
FY18
2,548
1,08,469
1,11,017
27,172
64,180
0
11,916
2,14,284
1,26,061
15,792
1,10,269
17,319
4,089
918
28,683
98,427
14,623
13,079
44,830
25,895
44,502
14,786
10,908
18,808
53,925
2,14,284
FY19
2,548
1,20,865
1,23,413
29,147
61,430
0
12,972
2,26,961
1,38,124
21,477
1,16,648
18,590
7,738
22,523
56,425
69,648
17,256
14,525
19,522
18,346
42,088
14,753
9,492
17,843
27,560
2,26,961
FY20
2,548
1,26,428
1,28,977
7,638
77,020
1,880
14,379
2,29,894
1,61,488
28,141
1,33,346
19,542
8,350
16,010
43,060
72,589
18,692
15,799
20,795
17,303
46,994
16,309
11,380
19,304
25,595
2,29,894
FY21
2,548
1,40,352
1,42,900
8,526
69,330
1,886
15,721
2,38,363
1,68,164
35,735
1,32,429
19,177
10,935
15,635
58,707
62,124
16,866
13,970
14,110
17,178
45,009
16,829
8,548
19,632
17,115
2,38,363
FY22E
2,548
1,44,207
1,46,755
8,526
67,800
1,880
15,721
2,40,682
1,78,164
43,527
1,34,637
19,177
8,500
15,635
58,707
71,004
18,619
16,613
16,323
19,449
51,343
19,308
11,441
20,594
19,661
2,40,682
FY23E
2,548
1,51,789
1,54,337
8,526
62,297
1,880
15,721
2,42,761
1,88,164
51,769
1,36,394
19,177
8,000
15,635
58,707
76,035
20,792
18,983
14,689
21,571
55,552
21,562
13,073
20,917
20,483
2,42,761
(INR m)
5 May 2021
10
 Motilal Oswal Financial Services
Tata Chemicals
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
Core 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
27.3
48.0
269.0
10.0
45.0
FY17
34.5
54.6
310.3
11.0
39.2
20.5
13.0
2.3
2.5
12.3
1.6
113.3
11.2
8.9
14.0
8.6
1.3
0.8
119
86
103
1.8
3.0
1.1
11.9
8.6
10.8
8.1
0.9
0.5
244
74
232
1.6
5.3
0.7
FY18
48.1
68.5
435.7
22.0
53.4
14.7
10.3
1.6
2.2
10.3
3.1
76.9
12.9
10.9
15.6
11.6
0.8
0.5
304
46
307
2.2
5.1
0.2
FY19
33.8
56.1
484.3
12.5
42.0
20.9
12.6
1.5
2.2
12.9
1.8
19.7
7.4
7.2
11.2
6.9
0.7
0.5
315
51
269
1.7
3.4
0.2
FY20
31.7
57.8
506.1
11.0
42.7
22.4
12.2
1.4
2.2
11.7
1.6
-16.3
6.4
6.7
10.5
7.0
0.6
0.5
347
56
302
1.5
3.8
0.3
FY21
10.1
39.9
560.8
10.0
99.4
70.4
17.8
1.3
2.2
15.2
1.4
-12.1
1.9
3.1
5.1
3.2
0.6
0.4
257
50
256
1.4
2.0
0.3
FY22E
26.1
56.7
575.9
11.0
42.1
27.1
12.5
1.2
2.0
11.9
1.6
32.9
4.6
5.0
8.3
5.4
0.6
0.5
270
53
280
1.4
3.3
0.2
FY23E
41.8
74.1
605.7
12.0
28.7
17.0
9.6
1.2
1.7
9.1
1.7
33.2
7.1
6.8
11.3
7.7
0.7
0.5
270
53
280
1.4
5.0
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
12,935
5,714
5,946
-3,645
-652
20,298
3,022
23,319
-6,865
16,454
-90
-337
-7,292
0
-6,098
-6,202
-3,820
-1,897
-18,017
-1,989
14,643
12,654
FY17
16,522
5,522
4,645
-4,516
12,103
34,276
1,033
35,309
-6,429
28,880
-2,064
588
-7,905
0
-14,117
-4,456
-3,056
-1,781
-23,409
3,995
12,654
16,649
FY18
15,066
5,180
1,661
-601
4,797
26,103
643
26,746
-7,142
19,604
-752
1,595
-6,300
0
-6,303
-3,256
-6,895
24,190
7,736
28,182
16,649
44,831
FY19
17,304
5,714
3,653
-4,849
-2,144
19,678
-3,865
15,813
-10,795
5,018
-19,711
10,924
-19,582
0
-5,714
-2,939
-6,725
-6,162
-21,540
-25,309
44,831
19,522
FY20
12,519
6,665
308
-2,197
506
17,801
0
17,801
-21,962
-4,161
13,364
-15,085
-23,682
0
12,625
-3,419
-3,448
1,396
7,154
1,273
19,522
20,795
FY21
6,084
7,593
1,330
-1,978
-7,215
5,814
0
5,814
-8,896
-3,083
-15,646
35,846
11,303
0
-7,690
-3,674
-2,548
-9,890
-23,802
-6,685
20,795
14,110
FY22E
10,814
7,792
339
-2,649
-334
15,962
-6
15,956
-7,565
8,392
0
3,089
-4,476
0
-1,530
-3,428
-2,803
-1,507
-9,268
2,213
14,110
16,323
(INR m)
FY23E
16,308
8,242
-147
-3,995
-2,455
17,953
0
17,953
-9,500
8,453
0
3,399
-6,101
0
-5,503
-3,252
-3,058
-1,672
-13,485
-1,634
16,323
14,689
5 May 2021
11
 Motilal Oswal Financial Services
Tata Chemicals
NOTES
5 May 2021
12
 Motilal Oswal Financial Services
Tata Chemicals
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
********************************************************************************************************************************
5 May 2021
13
 Motilal Oswal Financial Services
Tata Chemicals
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.
5 May 2021
14