Westlife Development
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)
WLDL IN
156
65.7 / 0.9
535 / 271
3/2/-10
118
14 May 2021
4QFY21 Results Update | Sector: Retail
CMP: INR422
TP: INR400 (-5%)
Second COVID wave dampens near-term outlook
Neutral
Financials & Valuations (INR b)
Y/E March
2021 2022E
Sales
9.9
12.3
Sales Gr. (%)
-36.3
25.0
EBITDA
0.5
1.6
Margins (%)
4.8
13.0
Adj. PAT
-1.0
-0.3
Adj. EPS (INR)
-6.7
-1.8
EPS Gr. (%)
P/L
-
BV/Sh.(INR)
30.9
29.1
Ratios
RoE (%)
-19.6
-6.0
RoCE (%)
-5.1
5.7
Valuation
P/E (x)
N/M
N/M
P/BV (x)
13.6
14.5
EV/EBITDA (x)
144.2
42.1
Shareholding pattern (%)
As On
Mar-21 Dec-20
Promoter
58.0
59.1
DII
20.8
20.4
FII
10.8
9.6
Others
10.4
10.9
FII Includes depository receipts
2023E
18.5
50.0
3.0
16.0
0.6
4.2
L/P
33.3
13.3
20.5
101.3
12.7
22.7
Weaker-than-expected performance
Westlife Development (WLDL) delivered in-line SSSG, but lower-than-
expected sales growth, with just one new store addition in 4QFY21 and
only five in FY21. Furthermore, the dine-in channel (45% of sales in
4QFY21) was still below normal levels. However, strong performance from
the convenience channel is a positive.
Gross margin (GM) expansion through volume recovery, channel
optimization, and supply chain initiatives is encouraging. The recovery in
McCafé would further support the GM. EBITDA margins were below
expectations, with a one-time employee bonus and salary reversals putting
pressure. Nevertheless, the company’s efforts on fixed cost reduction
should aid margins going forward.
While we like the structural outlook for WLDL, the near-term challenges
due to the second COVID wave would lead to an overhang on the stock.
The higher salience of the dine-in channel would delay normalcy.
Valuations of 22.7x FY23E EV/EBITDA are at a ~9% discount to JUBI and do
not leave scope for an upside. Maintain
Neutral.
In 4QFY21, WLDL’s net sales grew 6.3% YoY to INR3.6b (est. INR3.8b).
SSSG was reported at 10.5% YoY (in line with estimates).
WLDL opened one new McDonald’s store in 4QFY21.
Gross margins were up 90bp YoY to 66.5%.
Restaurant operating margins (ROM) were up 560bp YoY to 16.4%.
EBITDA grew 28.8% YoY to INR468m (est. INR536m).
The EBITDA margin expanded 230bp YoY to 13.1% (est. 14.2%).
Adj. PAT loss stood at INR65m (est. profit of INR55m).
FY21 sales/EBITDA declined 36.3%/78.1% YoY. Adj. PAT loss for FY21 stood
at INR1b vis-à-vis profit of INR93m in FY20.
A 90% recovery was seen in dine-ins and an accelerated performance from
the convenience channel (which grew 42% YoY). WLDL did not see any
drop in convenience channel sales even as dine-in sales recovered in
4QFY21.
The convenience/dine-in channel accounted for 55%/45% share in the
quarter. In-store sales were only 70% of pre-COVID sales (Jan’20).
WLDL lowered its fixed costs significantly in FY21. Its new cost structure is
now more resilient to volatility.
While the ongoing second COVID wave is affecting the retail business
across the sector, the higher salience of WLDL’s dine-in channel would
delay recovery. We cut our sales estimates for FY22/FY23E by 20%/12.5%
and EBITDA estimates by 25.9%/10%.
Although we like the structural opportunity for WLDL, near-term
challenges would prove an overhang. Valuations of 22.7x FY23 are at a ~9%
discount to JUBI and do not leave scope for an upside. Valuing the stock at
21x FY23 EV/EBITDA (~15% discount to JUBI), we achieve TP of INR400.
Maintain
Neutral.
Mar-20
59.1
16.1
12.7
12.2
Highlights from management commentary
Valuation and view
Krishnan Sambamoorthy – Research Analyst
(Krishnan.Sambamoorthy@MotilalOswal.com)
Research Analyst: Dhairya Dhruv
(Dhairya.Dhruv@MotilalOswal.com)/Kaiwan
Jal Olia
(kaiwan.o@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
Westlife Development
Consol. - Quarterly Perf.
Y/E March
SSSG %
No. of McDonald's restaurants
Net Sales
YoY Change (%)
Gross profit
Margin (%)
EBITDA
YoY Change (%)
Margins (%)
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
Adj PAT
YoY Change (%)
Margins (%)
E: MOFSL Estimates
Key Performance Indicators
Y/E March
2Y average growth (%)
SSSG
Sales
% of Sales
COGS
Operating Expenses
Depreciation
YoY change (%)
COGS
Operating Expenses
Other Income
EBIT
1Q
6.7
300
3,820
11.8
2,444
64.0
489
48.1
12.8
332
203
29
-17
-5
31.9
-11
-112.5
-0.3
(INR m)
Var
(%)
-5.3
FY20
2Q
3Q
4Q
1Q
7.0
9.2
(6.9) (54.0)
304
315
319
320
3,965 4,329 3,364
939
13.3 16.8
-0.9 -75.4
2,589 2,857 2,206
533
65.3 66.0 65.6
56.8
580
709
363
-423
108.1 112.9 42.1 -186.5
14.6 16.4 10.8 -45.0
344
355
354
353
200
202
203
215
38
46
17
182
74
198 -177
-809
27
54
-91
-203
36.9 27.4 51.2
25.1
47
144
-86
-605
-40.6 107.7 -774.7
P/L
1.2
3.3
-2.6 -64.5
FY21
2Q
3Q
4Q
(40.7) (24.0)
10.5
311
304
305
2,095 3,251 3,576
-47.2 -24.9
6.3
1,331 2,136 2,378
63.5 65.7 66.5
-13
437
468
-102.2 -38.3 28.8
-0.6 13.5 13.1
351
350
342
217
210
204
146
82
33
-435
-40
-45
-109
0
19
25.1
-0.9 -42.0
-325
-41
-65
P/L
P/L
L/P
-15.5
-1.3
-1.8
FY20
FY21
4.0
(27.1)
319
305
15,478
9,860
10.4
-36.3
10,095
6,377
65.2
64.7
2,140
469
78.8
-78.1
13.8
4.8
1,384
1,396
808
845
130
443
79
-1,329
-14
-293
-18.1
22.1
93
-1,036
-63.0 -1,216.1
0.6
-10.5
FY21
4QE
10.7
310.0
3,776
12.3
2,467
65.3
536
47.6
14.2
356
219
113
74
19
25.2
55
L/P
1.5
-12.8
-
-
1Q
15.4
21.0
36.0
51.2
8.7
11.1
5.8
-18.1
9.3
FY20
2Q
16.4
22.8
34.7
50.7
8.7
8.1
3.1
-10.4
189.7
3Q
11.9
19.1
34.0
49.6
8.2
8.9
6.2
131.9
174.0
4Q
(0.7)
5.6
34.4
54.8
10.5
-6.5
-3.0
-21.3
-79.6
1Q
(23.7)
(31.8)
43.2
101.8
37.6
-70.5
-51.1
524.4
-593.2
FY21
2Q
(16.9)
(17.0)
36.5
64.1
16.8
-44.5
-33.1
282.9
-254.1
3Q
(7.4)
(4.1)
34.3
52.2
10.8
-24.3
-20.9
78.4
-75.3
4Q
1.8
2.7
33.5
53.4
9.6
3.5
3.7
96.1
1,247.7
14 May 2021
2
 Motilal Oswal Financial Services
Westlife Development
Exhibit 1: Restaurant Operating Margins
INR m
Total Revenue
YoY Change (%)
4QFY20
3,364
-0.9
1,158
426
153
1,254
2,990
373
-19.4
11.1
3QFY21
3,251
-24.9
1,115
334
149
1,152
2,750
501
-33.9
15.4
4QFY21
3,576
6.3
1,198
358
161
1,273
2,990
586
56.9
16.4
Food & Paper
Payroll & employee benefits
Royalty
Occupancy and other operating expenses
Total Restaurant Expenses
Restaurant operating profit
YoY Change (%)
Margin (%)
As a % of sales
Food & Paper
Payroll & employee benefits
Royalty
Occupancy and other operating expenses
% of sales change YoY (%)
Food & Paper
Payroll & employee benefits
Royalty
Occupancy and other operating expenses
ROM
34.4
12.7
4.5
37.3
(2.1)
1.5
0.0
3.1
(2.6)
34.3
10.3
4.6
35.4
33.5
10.0
4.5
35.6
0.3
(0.9)
0.4
(2.6)
0.0
(0.0)
1.4
(1.7)
(2.1)
5.3
Source: Company, MOFSL
14 May 2021
3
 Motilal Oswal Financial Services
Westlife Development
Management call highlights
COVID impact
WLDL leveraged the Real Estate portfolio and led rental renegotiations in FY21.
WLDL significantly lowered fixed costs in FY21. Its new cost structure is now
more resilient to volatility.
QSR is an impulse business and driven by convenience. COVID has pivoted the
brand towards convenience.
Business scenario
The number of McCafe stores remains the same.
5–7% growth was seen in the IEO (Informal Eating Out) category in 4QFY21.
Within the organized sector, Western Fast Food (WFF) grew 18% during the
quarter. WFF gained share in 4Q.
WLDL opened one store during the quarter – a flagship store at the T2 terminal
in Mumbai.
WLDL has 5–6 new stores under development.
Gourmet burgers are available in only five restaurants each in the West and the
South regions. WLDL is currently testing consumer response to the products.
WLDL did not see any drop in convenience channel sales even as dine-in sales
recovered in 4QFY21.
For consumption off-premise, the average bill size tends to be higher – a trend
that is expected to stay, as strategy evolves over the coming 3–4 quarters.
Sales and channels
Convenience channel revenues more than doubled in 2HFY21.
A 90% recovery was seen in dine-in and an accelerated performance from the
convenience channel, which grew 42% YoY.
McDelivery reported the highest ever sales in Mar’21.
81% growth was seen in the drive-thru channel, while OTG grew 3x in 4Q.
Convenience channels are likely to stay, and once dining recovers, the company
is poised for growth.
The convenience/dine-in channel accounted for 55%/45% share during the
quarter. In-store sales were only 70% of pre-COVID sales (Jan’20).
McDonald’s app downloads / active users surged 50% YoY.
Financial highlights
With the exclusion of exceptional costs, operating EBITDA margins stood at 11%.
Exceptional cost included one-time cost related to salary reinstatements and
bonus payments to employees.
Cash profit in 2HFY21 aided recovery in loss incurred in 1HFY21.
Sales were driven by a 142% recovery in convenience channels and almost total
recovery in dine-ins.
Cash profit stood at INR24m for the full year.
The company is almost net debt free.
The management has guided for INR1b capex for FY22.
14 May 2021
4
 Motilal Oswal Financial Services
Westlife Development
Outlook
Volatility and uncertainty are expected to persist.
The management would continue to invest in the brand, technology, and
growth.
It is resuming its expansion plans in line with Vision 2022. The company would
try to stick to the original plan of 25–30 annual restaurant additions. COVID
disruptions may affect plans (by ~5 restaurants). It aims to be aggressive and
grow its restaurant count using the strength of the balance sheet.
In comparison with the first COVID wave, WLDL has entered the second wave
stronger. Its Apr’21 performance was better v/s last year. While in-store was
completely shut during the month, delivery demand was robust, only marginally
impacted by the imposed curfews.
Key exhibits
Exhibit 2: SSSG stood at 10.5% in 4QFY21
SSS Growth (%)
Exhibit 3: Net sales grew 6.3% YoY to INR3.6b in 4QFY21
Net Sales (INR b)
Sales growth (%)
6
(25)
(47)
26 35 30 32 21
12 12 13 17
11 16 15 6 14 13
(1)
(75)
Source: Company, MOFSL
Source: Company, MOFSL
Consol. gross margins were up 90bp YoY to 66.5%.
As a percentage of sales,
lower employee costs (-10bp YoY) and lower other expenses (-120bp YoY) led to
EBITDA margin expansion of 230bp YoY to 13.1% (v/s est. 14.2%) in 4QFY21.
Exhibit 5: EBITDA margin expanded 230bp YoY to 13.1%
EBITDA Margin (%)
Exhibit 4: Gross margins expanded 90bp YoY to 66.5%
Gross Margin (%)
Source: Company, MOFSL
Source: Company, MOFSL
14 May 2021
5
 Motilal Oswal Financial Services
Westlife Development
Valuation and view
While the ongoing second COVID wave is affecting the retail business across the
sector, the higher salience of WLDL’s dine-in channel makes it
disproportionately vulnerable. We cut our sales estimates for FY22/FY23E by
20%/12.5% and EBITDA estimates by 25.9%/10%.
Although we like the structural opportunity for WLDL, near-term challenges
would prove an overhang. Valuing the stock at 22.7x FY23 EV/EBITDA (~15%
discount to JUBI), we achieve TP of INR400. Maintain
Neutral.
Exhibit 6: 25.9%/10% cut in our EBITDA forecasts for FY22/FY23E
(INR m)
Sales
EBITDA
PAT
New
FY22E
12,325
1,605
(282)
FY23E
18,488
2,956
648
Old
FY22E
15,408
2,167
225
FY23E
21,124
3,285
967
Change (%)
FY22E
FY23E
-20.0
-12.5
-25.9
-10.0
-
-33.0
Source: Company, MOFSL
14 May 2021
6
 Motilal Oswal Financial Services
Westlife Development
Financials and valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
Materials Consumed
Gross profit
Margin (%)
Operating Expenses
EBITDA
Change (%)
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
Total Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
(INR m)
FY17
9,308
11.7
3,663
5,645
60.6
5,175
469
10.2
5.0
637
-168
154
200
-121
0
0.0
-121
-121
P/L
-1.3
FY18
11,349
21.9
4,250
7,099
62.6
6,325
774
64.8
6.8
673
101
150
178
129
0
0.0
129
129
L/P
1.1
FY19
14,020
23.5
5,116
8,905
63.5
7,715
1,190
53.8
8.5
797
393
177
136
352
139
39.5
213
213
65.7
1.5
FY20
15,478
10.4
5,382
10,095
65.2
7,955
2,140
79.9
13.8
1,384
757
808
130
79
-14
16.2
-73
93
-56.4
0.6
FY21
9,860
-36.3
3,483
6,377
64.7
5,908
469
-78.1
4.8
1,396
-927
845
443
-1,329
-293
22.8
-994
-1,036
P/L
-10.5
FY22E
12,325
25.0
4,243
8,083
65.6
6,478
1,605
241.9
13.0
1,450
155
889
357
-377
-95
25.2
-282
-282
-
-2.3
FY23E
18,488
50.0
6,216
12,272
66.4
9,316
2,956
84.2
16.0
1,547
1,409
950
407
866
218
25.2
648
648
L/P
3.5
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
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
E: MOFSL Estimates
(INR m)
FY17
311
4,964
5,275
0
1,904
0
7,179
7,984
3,143
4,842
466
172
1,700
1,623
302
49
71
1,201
1,624
1,114
442
68
0
7,179
FY18
311
5,111
5,422
0
1,835
0
7,258
8,795
3,722
5,073
466
197
1,843
1,712
337
64
109
1,201
2,034
1,397
565
72
-322
7,258
FY19
311
5,525
5,837
0
2,339
-63
8,113
7,242
1,761
5,480
466
284
2,046
1,901
410
98
92
1,301
2,065
1,487
498
80
-164
8,112
FY20
311
5,459
5,770
0
1,837
-214
7,394
8,439
2,538
5,900
466
226
1,576
9,249
411
47
30
8,760
10,023
1,594
8,330
100
-774
7,394
FY21
312
4,501
4,812
0
2,152
-510
6,454
9,303
3,935
5,368
466
256
1,984
8,651
465
88
110
7,988
10,272
1,851
8,318
104
-1,621
6,454
FY22E
312
4,219
4,530
0
1,952
-510
5,972
10,403
5,385
5,018
466
226
794
9,502
473
110
113
8,806
10,033
1,520
8,384
130
-532
5,972
FY23E
312
4,866
5,178
0
1,602
-510
6,270
11,903
6,932
4,971
466
226
1,016
11,513
709
165
251
10,389
11,922
2,279
9,448
195
-409
6,270
14 May 2021
7
 Motilal Oswal Financial Services
Westlife Development
Financials and valuations
Ratios
Y/E March
Basic (INR)
Adj. EPS
Cash EPS
BV/Share
DPS
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY17
-0.8
3.3
33.9
0.0
N/M
127.2
12.4
7.3
143.8
-2.3
0.5
-3.3
1.2
1.3
12
2
44
1.0
-1.1
0.0
FY18
0.8
5.2
34.9
0.0
510.3
81.9
12.1
5.9
87.1
2.4
3.9
2.0
1.3
1.6
11
2
45
0.8
0.7
0.0
FY19
1.4
6.5
37.5
0.0
307.9
64.9
11.2
4.8
57.1
3.8
4.2
4.4
1.9
1.7
11
3
39
0.9
2.2
0.0
FY20
0.6
9.5
37.1
0.0
706.9
44.4
11.4
4.4
31.5
1.6
9.4
11.3
1.8
2.1
10
1
38
0.9
0.9
0.0
FY21
-6.7
2.3
30.9
0.0
N/M
182.1
13.6
6.9
144.2
-19.6
-5.1
-14.8
1.1
1.5
17
3
69
0.8
-1.1
0.0
FY22E
-1.8
7.5
29.1
0.0
N/M
56.2
14.5
5.5
42.1
-6.0
5.7
2.6
1.2
2.1
14
3
45
0.9
0.2
0.2
FY23E
4.2
14.1
33.3
0.0
101.3
29.9
12.7
3.6
22.7
13.3
20.5
21.9
1.6
2.9
14
3
45
1.0
1.5
0.1
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
E: MOFSL Estimates
FY17
-121
637
148
3
120
786
-130
657
-908
-251
34
-42
-915
1
409
-150
0
0
260
1
69
71
0
FY18
129
673
145
-23
508
1,432
-60
1,371
-1,059
312
-59
4
-1,115
2
-69
-151
0
0
-217
39
71
109
0
FY19
393
797
175
-26
-110
1,229
-80
1,148
-1,426
-278
-73
4
-1,495
2
504
-177
0
0
330
-17
109
92
0
FY20
-88
1,384
780
-163
164
2,076
-80
1,996
-1,259
737
569
18
-672
10
-508
-152
0
-737
-1,387
-62
92
30
0
FY21
-1,287
1,396
791
32
691
1,623
-331
1,292
-491
801
-252
-16
-759
28
332
-170
0
-643
-453
80
30
110
0
FY22E
-377
1,450
532
95
-1,086
614
0
614
-1,070
-456
1,191
357
478
0
-200
-889
0
0
-1,089
3
110
113
0
(INR m)
FY23E
866
1,547
543
-218
15
2,753
0
2,753
-1,500
1,253
-222
407
-1,316
0
-350
-950
0
0
-1,300
137
113
251
0
14 May 2021
8
 Motilal Oswal Financial Services
Westlife Development
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30
days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations,
is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOFSL is a subsidiary
company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on www.motilaloswal.com. MOFSL
(erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of
India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its
stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member
of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance
products.
Details
of
associate
entities
of
Motilal
Oswal
Financial
Services
Limited
are
available
on
the
website
at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell
the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a
market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of
interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the
analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in
some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware
that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment
banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and
Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity
and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use
would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities
and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal
Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report
is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to
professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer
or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state
laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934
Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by
MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as
defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on
by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in
only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and
interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a
chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be
executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered
broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading
securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets services
license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and Paragraph 11 of First
Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in respect of any matter arising
from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of which some of whom may consist of
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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
14 May 2021
9
 Motilal Oswal Financial Services
Westlife Development
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.
-
14 May 2021
10