22 May 2021
4QFY21 Results Update | Sector: Utilities
Torrent Power
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)
TPW IN
481
216.5 / 3
465 / 293
13/32/-14
539
Distribution business normalizes
CMP: INR451
TP: INR480 (+7%)
Downgrade to Neutral
Financials & Valuations (INR b)
Y/E MARCH
2021 2022E 2023E
Sales
118.3 140.5 144.8
EBITDA
32.3 37.6 40.9
Adj. PAT
11.0 15.0 16.8
EBITDA Margin (%)
27.3 26.8 28.3
Cons. Adj. EPS (INR)
22.9 31.1 35.0
EPS Gr. (%)
-18.2 35.8 12.4
BV/Sh. (INR)
211.9 234.0 260.0
Ratios
Net D:E
0.7
0.7
0.5
RoE (%)
11.4 14.0 14.2
RoCE (%)
8.6 10.2 10.6
Payout (%)
48.0 28.9 25.7
Valuations
P/E (x)
19.7 14.5 12.9
P/BV (x)
2.1
1.9
1.7
EV/EBITDA(x)
8.9
7.7
6.9
Div. Yield (%)
2.4
2.0
2.0
FCF Yield (%)
7.8
2.7
8.4
Shareholding pattern (%)
As On
Mar-21 Dec-20
Promoter
53.6
53.6
DII
20.2
19.5
FII
8.5
9.1
Others
17.8
17.9
FII Includes depository receipts
Price captures demand recovery; downgrade to Neutral
Torrent Power (TPW)’s result highlights the benefit of normalizing demand
in its Distribution Franchise (DF) business, offset by lower renewable
generation. Reported EBITDA was up 11% YoY.
While a fresh set of lockdowns could affect the performance of DFs, power
demand and collections in DFs have not been significantly impacted thus
far. We expect the co.’s DF business to improve over FY22–23. However,
with the recent run-up in the stock (+45% in the last six months), this
improvement is well baked in. Accordingly, we downgrade to Neutral, with
TP of INR480/sh.
Distribution biz normalizes; lower interest costs kick in
TPW’s 4QFY21 reported EBITDA was up 11% YoY to INR9.1b. However, one-
offs such as 1) an INR130m benefit from the reversal of provisions for
doubtful debts and 2) INR380m in fuel cost recoveries in UnoSugen were
observed. Adjusted for these, EBITDA would be at INR 8.6b (est. INR9.0b).
The quarter also saw INR0.5b income related to RLNG trading, offset by
lower renewable generation.
Renewable generation declined 11% YoY at 372Mus, weighed by lower
wind plant load factors (PLFs) – wind PLFs stood at 20.8% for the quarter v/s
22.7% in 4QFY20.
Power purchase at Bhiwandi/Agra was up 7%/8% YoY and has now largely
normalized. FY21 T&D loss at Bhiwandi came in lower at 16.2% (19.1% in
9MFY21). T&D loss at Agra was 13.5% v/s 13.2% in 9M.
Interest costs were down 14% QoQ / 26% YoY to INR1.6b (est. INR1.9b) on
the back of lower debt and borrowing costs (150 bps lower YoY). Adj. PAT
was up 27% YoY to INR3.6b (est. INR3.2b). Reported PAT stood at INR4.0b
v/s loss of INR2.8b in the previous year. The previous year saw an
impairment of INR10b for DGEN. FY21 adjusted profits were down 18% YoY
to INR11b.
Management commentary highlights
Demand from end consumers has recovered, with demand in Distribution
License (DL) and DF up just 14% and 7% YoY, respectively, in 4Q. The co.
noted some reduction in demand at Bhiwandi in April and May due to the
lockdown in Maharashtra – however, this is insignificant.
Collections in its DFs circles remain good at >100%. The co expects to
recover most of the balance of INR1b provisions made in the coming
quarters.
Capex within the DL and DF circles would continue at INR12b p.a. and
INR2.5b p.a., respectively. Capex for under-construction renewable projects
stands at INR16b. 50–60% of renewables-related capex is expected in FY22.
Mar-20
53.6
19.6
8.8
18.1
;
Aniket Mittal – Research Analyst
(Aniket.Mittal@MotilalOswal.com)
13 February 2020
1
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
Torrent Power
Current price bakes in demand recovery; downgrade to Neutral
A fresh set of lockdowns could affect the performance of DFs. However, power
demand and collections in DFs have not been significantly impacted thus far (as
per company announcements). Besides, collections in these circles remain
strong. We expect the co.’s DF business to improve over FY22–23. This, coupled
with continued capex in the regulated Distribution business and lower interest
costs, should result in a 24% PAT CAGR over FY21–23. However, with the recent
run-up in the stock (+45% in the past six months), this is well-captured.
With a healthy balance sheet, TPW is still well-placed to capitalize on
opportunities arising from distribution privatization. However, we await clarity
on successful wins. Accordingly, we downgrade to Neutral, with SOTP-based TP
of INR480/sh.
Quarterly Performance (consolidated) – INR b
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 and Associates
Reported PAT
PAT
YoY Change (%)
1Q
37,361
5.9
29,025
8,337
22.3
3,206
2,477
545
3,199
0
3,199
433
13.5
13
2,753
2,753
21.9
FY20
2Q
3Q
38,420 30,790
11.5
-5.4
27,870 22,386
10,550 8,404
27.5
27.3
3,219 3,268
2,495 2,349
493
365
5,329 3,152
0
0
5,329 3,152
-2,227 -1,055
-41.8 -33.5
12
12
7,544 4,194
4,742 3,148
15.1
32.8
4Q
29,835
2.0
21,565
8,270
27.7
3,350
2,224
373
3,069
10,000
-6,931
-4,191
60.5
10
-2,749
2,815
NA
1Q
26,631
-28.7
19,647
6,984
26.2
3,159
2,203
347
1,968
-2,710
4,678
940
20.1
12
3,727
1,559
-43.4
FY21
2Q
3Q
31,287 29,528
-18.6
-4.1
22,966 21,185
8,321
8,343
26.6
28.3
3,165
3,193
2,020
1,897
374
374
3,510
3,627
1,210
-360
2,300
3,987
278
770
12.1
19.3
13
12
2,008
3,205
2,976
2,917
-37.2
-7.3
4Q
30,841
3.4
22,207
8,635
28.0
3,278
1,637
324
4,043
-510
4,553
572
12.6
12
3,969
3,561
26.5
FY20
136,406
100,846
35,561
13,043
9,546
1,776
14,748
10,000
4,748
-7,040
-148.3
47
11,742
13,458
49.7
FY21
118,287
86,004
32,282
12,796
7,757
1,418
13,148
-2,370
15,518
2,559
16.5
49
12,909
11,013
-18.2
FY21
4QE
31,931
7.0
22,930
9,001
28.2
3,254
1,881
389
4,255
0
4,255
1,057
24.8
12
3,186
3,186
13.2
vs Est
(%)
-3
-3
-4
1
-13
-17
-5
7
25
12
Source: MOFSL, Company
Operational highlights
FY21 T&D losses at Bhiwandi and Agra came in at 16.2% and 13.5%, respectively,
v/s 9M T&D losses of 19.1% and 13.2%.
Renewable generation was down 11% YoY to 372MUs. Wind PLFs were lower at
20.8% v/s 22.7% in the previous year.
Power purchase at Bhiwandi/Agra was up 7%/8% YoY, and Ahmedabad/Surat
saw a 12%/15% YoY increase.
22 May 2021
2
 Motilal Oswal Financial Services
Torrent Power
Exhibit 1: SOTP valuation
FY23 basis
Reg. E
Equity
INR m
56,035
25,494
8,145
11,000
4,285
7,110
EBITDA
INR m
8,197
8,592
2,159
16.0
16.0
14.0
15.5
6.0
6.0
0.0
0.0
RoE
%
Growth
%
Multiple
x
(RoE-
g)/(CoE-g)
1.9
1.9
0.9
1.0
1.4
Equity
Value
INR m
88,056
48,560
15,515
9,900
4,285
9,796
4,760
Norm.
Debt
INR m
38,067
20,451
4,475
0
0
13,141
3,814
EV
INR m
134,697
69,011
19,990
9,900
4,285
22,937
8,574
69,678
64,437
7,065
9,715
9,430
295,022
64,366
230,656
481
480
Source: MOFSL, Company
Regulated businesses
Distribution
Ahmedabad
Surat
Regulatory assets
Generation
Sabarmati
Sugen
UnoSugen
Others businesses
RE projects
Bhiwandi and Agra DFs
SMK DF
Sugen PPA efficiency earnings
Others (incl. expected dividend)
EV
Less: Net debt
MCap
No. of shares
Value per share
8.5
7.5
4.5
Conference call takeaways
Demand from end consumers recovered, with demand in DL and DF up just 14%
and 7% YoY, respectively, in 4Q. The co. noted some reduction in demand at
Bhiwandi in April and May due to the lockdowns in Maharashtra – however, this
is insignificant.
Collections in its DFs circles remain good at >100%. The co expects to recover
most of the balance of INR1b provisions made in the coming quarters.
Capex within the DL and DF circles would continue at INR12b p.a. and INR2.5b
p.a., respectively. Capex for under-construction renewable projects stands at
INR16b. 50–60% of renewables-related capex is expected in FY22.
Interest cost declined 150bps on a YoY basis in 4Q. The average interest cost
now stands at 7.75%.
Discussions are underway with GERC related to the retirement of AMGEN. Upon
its retirement, distribution circles would have to call for competitive bids.
The co. sold 1.5BUs of power in the merchant market, with an INR0.7b profit in
FY21.
The company won the bid for Daman, Diu, and Dadra and Nagar Haveli.
However, the matter is sub-judice; the hearing is expected to happen in
June/July of this year.
22 May 2021
3
 Motilal Oswal Financial Services
Torrent Power
Valuation and view
A fresh set of lockdowns could affect the performance of DFs. However, power
demand and collections in DFs have not been significantly impacted thus far (as
per company announcements). Besides, collections in these circles remain
strong. We expect the co.’s DF business to improve over FY22–23. This, coupled
with continued capex in the regulated Distribution business and lower interest
costs, should result in a 24% PAT CAGR over FY21–23. However, with the recent
run-up in the stock (+45% in the past six months), this is well-captured.
With a healthy balance sheet, TPW is still well-placed to capitalize on
opportunities arising from distribution privatization. However, we await clarity
on successful wins. Accordingly, we downgrade to Neutral, with SOTP-based TP
of INR480/sh.
22 May 2021
4
 Motilal Oswal Financial Services
Torrent Power
Story in charts
Exhibit 2: Torrent Power – a diversified portfolio…
Others
(incl.
franchisee)
15%
Renewables
18%
Reg.
distribution
30%
Gross Block
FY20 - %
Exhibit 3: …~85% of EBITDA comes from stable/predictable
segments
Reg. distribtion
% EBITDA
17
13
34
36
FY18
20
18
32
29
FY19
16
18
30
37
FY20
14
20
32
34
FY21E
Reg. generation
RE
Others (incl. DF)
Reg.
Untied
generation
generation
17%
20%
Source: MOSL, Company
Source: MOSL, Company
Exhibit 4: Profitability in FY21 impacted at DFs due to lower
demand
Adj. PAT - INR b
9.4
4.3
9.0
13.5
11.0
Exhibit 5: Expect DF performance to improve with reduction
in T&D loss over FY22 and FY23
19.2
17.6
15.1
14.2
12.5
11.9
Bhiwandi
16.2
13.5
13.0
12.2
Agra
11.011.5
Source: MOSL, Company
Source: MOSL, Company
Exhibit 6: Expect regulated equity in DL to post 11% CAGR
over FY21–23…
A'bad
Surat
INR b
Reg. Equity (A'bad+Surat)
22
6
16
FY18
24
6
18
FY19
25
7
19
FY20
Exhibit 7: …leading to 24% PAT CAGR over FY21–23
EBITDA - INR b
Adj. PAT - INR b
32
13
11
38
15
41
17
27
7
20
FY21E
31
8
23
34
8
31
9
32
9
36
25
FY22E
FY23E
Source: MOSL, Company
3.0
2.0
1.3
1.0
0.0
1.0
Source: MOSL, Company
Exhibit 8: Valuations have inched up and are trading +1SD above historical averages
P/B (x)
Avg (x)
Max (x)
1.6
Min (x)
+1SD
2.0
-1SD
1.7
0.5
Source: MOSL, Bloomberg
22 May 2021
5
 Motilal Oswal Financial Services
Torrent Power
Financials and valuations
Income statement
Y/E March
Net Sales
Change (%)
EBITDA
% of Net Sales
Depn. & Amortization
EBIT
Net Interest
Other income
PBT before EO
EO income/(cost)
PBT after EO
Tax
Rate (%)
Reported PAT
Minority and Associates
Adjusted PAT
Change (%)
2017
100,536
-14.2
24,603
24.5
10,059
14,544
10,580
1,909
5,873
0
5,873
1,576
26.8
4,298
8
4,290
-52.7
2017
4,806
64,115
68,921
289
87,681
13,363
170,255
187,266
19,226
168,040
3,321
0
66
36,559
3,694
9,751
9,336
13,778
37,731
9,054
28,677
-1,172
170,255
2018
115,121
14.5
31,171
27.1
11,315
19,856
8,482
2,636
14,010
0
14,010
4,489
32.0
9,521
98
9,423
119.7
2018
4,806
72,389
77,195
359
92,981
14,799
185,334
209,170
30,463
178,707
3,925
0
1,923
41,335
4,549
11,305
9,982
15,500
40,556
7,534
33,023
779
185,334
2019
131,510
14.2
31,995
24.3
12,265
19,730
8,989
1,896
12,636
0
12,636
3,598
28.5
9,038
49
8,989
-4.6
2019
4,806
84,896
89,702
374
97,152
15,654
202,882
222,767
42,628
180,139
3,593
0
2,876
58,933
6,270
12,297
9,549
30,817
42,659
8,998
33,661
16,274
202,882
2020
136,406
3.7
35,561
26.1
13,043
22,518
9,546
1,776
14,748
-10,000
4,748
-7,040
-148.3
11,789
47
13,458
49.7
2020
4,806
86,729
91,535
356
88,705
5,528
186,124
241,719
66,026
175,693
5,676
0
1,160
53,702
5,982
12,798
8,879
26,044
50,106
11,476
38,630
3,596
186,124
2021
118,287
-13.3
32,282
27.3
12,796
19,487
7,757
1,418
13,148
2,370
15,518
2,559
16.5
12,959
49
11,013
-18.2
2021
4,806
97,036
101,842
364
75,463
5,275
182,945
252,082
78,822
173,260
8,377
0
1,242
52,508
4,504
14,203
5,440
28,361
52,443
10,909
41,534
65
182,945
2022E
140,511
18.8
37,649
26.8
13,422
24,227
6,315
1,326
19,238
0
19,238
4,232
22.0
15,006
50
14,956
35.8
2022E
4,806
107,666
112,472
414
80,463
5,467
198,817
268,140
92,244
175,896
18,594
0
1,242
55,019
6,159
13,474
7,024
28,361
51,934
10,400
41,534
3,085
198,817
(INR m)
2023E
144,840
3.1
40,949
28.3
14,521
26,428
6,229
1,421
21,620
0
21,620
4,757
22.0
16,864
50
16,814
12.4
Balance sheet
Share Capital
Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liability
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Goodwill
Investments
Curr. Assets
Inventories
Account Receivables
Cash and Bank Balance
Others
Curr. Liability & Prov.
Account Payables
Provisions & Others
Net Curr. Assets
Appl. of Funds
(INR m)
2023E
4,806
120,155
124,961
464
71,463
5,467
202,355
296,023
106,764
189,259
8,377
0
1,242
55,696
6,349
13,889
7,097
28,361
52,219
10,685
41,534
3,477
202,355
22 May 2021
6
 Motilal Oswal Financial Services
Torrent Power
Financials and valuations
Ratios
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/EBITDA
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE (post-tax)
RoIC (post-tax)
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Debtor (Days)
Inventory (Days)
Leverage Ratio (x)
Net Debt/EBITDA
Debt/Equity
2017
8.9
29.9
143.4
0.0
0.0
25.8
7.7
1.6
7.7
0.0
6.4
7.2
7.0
0.6
0.6
35
13
3.2
1.1
2018
19.6
43.1
160.6
2.2
11.2
11.7
5.3
1.4
6.2
1.0
12.9
8.6
8.3
0.6
0.6
36
14
2.7
1.1
2019
18.7
44.2
186.6
5.0
26.7
13.8
5.8
1.4
6.6
1.9
10.8
8.0
7.9
0.7
0.6
34
17
2.7
1.0
2020
28.0
55.1
190.5
11.6
41.4
9.7
4.9
1.4
5.9
4.3
14.9
9.6
9.7
0.8
0.7
34
16
2.2
0.9
2021
22.9
49.5
211.9
11.0
48.0
19.7
9.1
2.1
8.9
2.4
11.4
8.6
8.8
0.7
0.6
44
14
2.2
0.7
2022E
31.1
59.0
234.0
9.0
28.9
14.5
7.6
1.9
7.7
2.0
14.0
10.2
10.8
0.8
0.7
35
16
2.0
0.7
2023E
35.0
65.2
260.0
9.0
25.7
12.9
6.9
1.7
6.9
2.0
14.2
10.6
11.2
0.8
0.7
35
16
1.6
0.5
Cash flow statement
EBITDA
WC
Others
Direct taxes (net)
CF from Op. Activity
Capex
FCFF
Interest income
Investments in subs/assoc.
Others
CF from Inv. Activity
Share capital
Borrowings
Finance cost
Dividend
Others
CF from Fin. Activity
(Inc)/Dec in Cash
Opening balance
Closing balance (as per B/S)
2017
24,603
236
385
-1,056
24,168
-21,745
2,423
732
-16
113
-20,916
0
2,442
-10,334
-62
1,182
-6,771
-3,520
12,856
9,336
2018
31,171
-922
586
-3,200
27,635
-23,866
3,769
771
-17
-763
-23,875
0
5,276
-8,285
-1,310
1,205
-3,114
646
9,336
9,982
2019
31,995
-4,729
-161
-2,859
24,246
-19,887
4,359
768
-19
2,194
-16,944
0
4,175
-9,076
-2,925
90
-7,736
-434
9,982
9,548
2020
35,561
1,258
2,512
-2,977
36,354
-13,337
23,017
696
0
1,100
-11,541
0
-8,535
-8,643
-9,683
1,379
-25,483
-670
9,549
8,879
2021
32,282
-2,546
2,697
-2,558
29,876
-12,960
16,916
999
2,881
-25
-9,105
0
-10,927
-8,087
-2,686
-2,511
-24,210
-3,439
8,879
5,440
2022E
37,649
-1,435
0
-4,040
32,173
-26,275
5,899
1,326
0
0
-24,948
0
5,000
-6,315
-4,326
0
-5,641
1,584
5,440
7,024
(INR m)
2023E
40,949
-320
0
-4,757
35,872
-17,666
18,206
1,421
0
0
-16,245
0
-9,000
-6,229
-4,326
0
-19,555
73
7,024
7,097
22 May 2021
7
 Motilal Oswal Financial Services
Torrent Power
NOTES
22 May 2021
8
 Motilal Oswal Financial Services
Torrent Power
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
22 May 2021
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 Motilal Oswal Financial Services
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********************************************************************************************************************************
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.
22 May 2021
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