1 June 2021
4QFY21 Results Update | Sector: Agri
Kaveri Seed
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)
KSCL IN
63
43.4 / 0.6
816 / 409
13/29/21
235
CMP: INR720
TP: INR830 (+15%)
Buy
Higher than expected operating loss on higher fixed cost in 4Q
However, increased volume drives annual performance
Revenue increased 11% in FY21 on account of growth in Hybrid Rice, Maize
and Vegetable Seed segments, whereas Cotton Seed volumes fell 2%.
Performance was below our estimates in 4QFY21. However, we increase our
FY22E/FY23E earnings estimate by 6%/10%, owing to: a) increasing sales
estimates in the non-Cotton segment, particularly Paddy, b) increasing
realizations in Cotton, and c) higher other income on higher cash. We value
the stock at 13x FY23E EPS to arrive at our TP of INR830. Maintain Buy.
Financials & Valuations (INR b)
Y/E Mar
2021 2022E 2023E
Sales
10.4
11.6 12.6
EBITDA
3.0
3.3
3.6
PAT
3.1
3.4
3.8
EBITDA (%)
28.8
28.8 29.0
EPS (INR)
51.6
56.5 63.2
EPS Gr. (%)
19.7
9.5 11.9
BV/Sh. (INR)
206
256 310
Ratios
Net D/E
(0.5)
(0.5) (0.6)
RoE (%)
28.3
24.4 22.3
RoCE (%)
30.0
27.6 25.2
Payout (%)
8.8
12.1 14.4
Valuations
P/E (x)
14.0
12.7 11.4
EV/EBITDA (x)
15.2
13.6 12.4
Div Yield (%)
0.6
0.8
1.1
FCF Yield (%)
5.1
5.5
7.6
Maize and paddy drive overall performance
*Consol
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Mar-21 Dec-20 Mar-20
55.5
55.5
55.5
8.5
12.2
10.7
19.8
14.1
21.0
16.2
18.1
12.7
Revenue (standalone) stood at INR551m (est. INR567m) in 4QFY21, up 6%
YoY. Operating loss increased to INR124m (est. loss of INR91m) in 4QFY21
v/s a loss of INR117m in 4QFY20. Gross margin stood at 56.7% in 4QFY21 v/s
42.8% last year. As a percentage of sales, employee cost/other expenses
increased to 34%/45.2% in 4QFY21 v/s 26.8%/38.7% in 4QFY20. It reported a
net loss of INR143m (est. loss of INR49m) in 4QFY21 v/s a net profit of
INR94m in 4QFY20.
Cotton seed volumes declined marginally by ~2% to 7.09m packets in FY21
due to lower sales in Andhra Pradesh and Telangana, leading to a revenue
drop of 2.2% to INR4,404m. Contribution from new products rose to 25.2%
of volumes from 23.8%.
Hybrid paddy reported 56% revenue growth (to INR1,325m) in FY21 on 48%
volume growth. Introduction of new hybrids – 7299, 471, and 473 – aided
strong volume growth. Volume contribution from new hybrids rose to 68%
from 51%.
Revenue from maize seeds grew ~18% (to INR2,032m) in FY21 due to better
product-mix and stable contribution from new products.
Consolidated revenue/EBITDA/adjusted PAT grew 11%/18%/20% in FY21.
KSCL generated a CFO of INR2.5b (up 31% YoY) in FY21 on the back of higher
payables and lower receivables. This was offset by higher inventory.
Guidance:
Overall growth is expected to be in the 10-15% range, majorly
driven by the non-Cotton segment, which is expected to record 15-20%
growth in FY22, supported by growth in volumes and realizations.
The Cotton segment is expected to grow at 5-7% in FY22 as acreages are
expected to remain stable. Realization is expected to rise by 4-5% in FY22.
Market share:
Other than Telangana and Andhra Pradesh, KSCL gained
market share in the Cotton segment across all states. The company
managed to gain 0.5% market share, taking its overall share to 17%. Market
share in rice increased to 10% as the company managed to gain share in
FY21, whereas the same in maize is currently close to 10-11%. The size of
the domestic maize market is currently pegged at 85,000-95,000MT.
Highlights from the management interaction
Sumant Kumar - Research Analyst
(Sumant.Kumar@MotilalOswal.com)
Research Analyst: Darshit Shah
(Darshit.Shah@motilaloswal.com) /
Yusuf Inamdar
(yusuf.inamdar@motilaloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Kaveri Seed
Valuation and view
KSCL is on track to diversify from sales of cotton seeds by increasing the share of
rice and vegetables (contribution of non-cotton seed sales to overall sales has
increased to 58% in FY21 v/s 52% in FY20), which are growing at a faster pace
and yielding a higher margin (v/s the Cotton segment).
The management expects stable cotton acreages in FY22 and remains confident
of growing the Cotton segment by 5-7% on the back of higher realizations and
volume growth.
Performance was below our estimates in 4QFY21. However, We increase our
FY22E/FY23E earnings estimate by 6%/10% owing to: a) increasing sales
estimate of the non-Cotton segment, particularly Paddy, b) increasing
realizations in Cotton, and c) higher other income on higher cash.
We value the company at 13x FY23E EPS (in line with its five-year average P/E)
to arrive at a TP of INR830. Maintain Buy.
(INR m)
Var.
(%)
-3
Quarterly standalone earnings
Y/E March
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
Margin (%)
Depreciation
Interest
Other Income
PBT before EO expense
PBT
Tax
Rate (%)
Reported PAT
Adj. PAT
YoY Change (%)
Margin (%)
1Q
6,555
12.6
4,222
2,333
35.6
59
0
43
2,317
2,317
28
1.2
2,289
2,289
8.7
34.9
FY20
2Q
3Q
774
984
3.0
46.5
661
917
113
67
14.6
6.8
59
62
0
1
30
77
84
82
84
82
15
22
17.5
26.2
69
60
69
60
-41.9
65.8
9.0
6.1
4Q
519
16.1
637
-117
-22.6
64
1
315
132
132
39
29.3
94
94
NA
18.0
1Q
7,485
14.2
4,692
2,793
37.3
52
0
241
2,982
2,982
72
2.4
2,910
2,910
27.1
38.9
FY21
2Q
3Q
834 1,001
7.7
1.7
703
932
130
69
15.7
6.9
53
54
2
0
111
82
187
96
187
96
-26
22
-13.8
22.8
212
75
212
75
206.4
23.2
25.5
7.4
FY20
4Q
551
6.1
675
-124
-22.5
54
1
46
-133
-133
10
-7.5
-143
-143
NA
-26.0
8,833
14.9
6,437
2,395
27.1
243
2
466
2,616
2,616
103
3.9
2,513
2,513
17.0
28.4
FY21
9,870
11.7
7,001
2,869
29.1
213
4
480
3,132
3,132
79
2.5
3,053
3,053
21.5
30.9
FY21E
4QE
567
9.2
658
-91
-16.0
58
1
80
-70
-70
-20
29
-49
-49
-153
-8.7
NA
NA
NA
*Quarterly numbers are standalone and annual numbers are consolidated
Key performance indicators
Y/E March
1Q
Segment Revenue Growth (%)
Cotton seed
Hybrid Rice
Maize Seeds
Cotton Seed Vol. (m packets)
Cotton Seed Realization (INR packets)
Cost Break-up
RM Cost (% of sales)
Staff Cost (% of sales)
Other Cost (% of sales)
Gross Margin (%)
EBITDA Margin (%)
EBIT Margin (%)
7.2
73.2
5.0
6.7
609
53.6
1.8
9.0
46.4
35.6
34.7
FY20
2Q
3Q
4Q
(55.7)
39.1
(4.3)
0.0
1,000
57.2
26.8
38.7
42.8
-22.6
-35.0
1Q
4.8
53.2
8.7
7.0
608
55.8
1.8
5.1
44.2
37.3
36.6
FY21
2Q
(69.3)
(65.7)
112.7
0.1
910
44.0
21.5
18.8
56.0
15.7
9.3
FY20
3Q
(111.4)
384.2
(27.7)
(0.1)
57
49.7
20.6
22.8
50.3
6.9
1.5
4Q
34.2
(68.1)
97.9
0.1
597
43.3
34.0
45.2
56.7
-22.5
-32.3
12.5
65.5
10.2
7.2
623
52.9
6.5
13.5
47.1
27.1
24.4
FY21
87.3 (195.5)
12.0
50.0
(29.1)
75.4
0.5
0.0
684
2,770
45.3
15.6
24.5
54.7
14.6
7.0
52.5
19.8
20.9
47.5
6.8
0.5
(2.2)
56.0
17.7
7.1
621
53.5
7.2
10.3
46.5
29.1
26.9
1 June 2021
2
 Motilal Oswal Financial Services
Kaveri Seed
Key exhibits
Exhibit 1: Revenue trend
Revenue (INR m)
46.5
YoY growth (%)
35.6
14.6
16.1
3.0
6,555
774
984
519
7,485
14.2
6.1
7.7
834
1.7
1,001
551
2,333
113
67
-117
6.8
-22.6
2,793
130
69
Exhibit 2: EBITDA margin trend
EBIDTA (INR m)
EBITDA margin (%)
37.3
15.7
6.9
0.0
12.6
-124
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 3: Adjusted PAT trend
PAT (INR m)
2,106
119
36
-114
2,289
69
60
94
2,910
212
75
-143
Source: Company, MOFSL
Exhibit 4: Cotton revenue and volume trend
Revenue (INRm)
5.9
6.7
-0.1
90
0.1
4,051
-58
Volume (m packets)
7.0
55
0.0
40
0.0
4,247
190
356
0.5
0.3
3,780
0.1
109
-0.1
0.1
54
-6
Source: Company, MOFSL
1 June 2021
3
 Motilal Oswal Financial Services
Kaveri Seed
Exhibit 5: Maize revenue and volume trend
Revenue (INRm)
5.6
91
1.8
800
370
2.3
1.4
306
0.4
840
1.2
262
537
5.0
87
Volume (000' MT)
5.3
3.2
1.6
0.8
914
558
388
0.0
172
Source: Company, MOFSL
Exhibit 6: Hybrid rice revenue and volume trend
Revenue (INRm)
3,420
2,392
67
430
401
12
745
56
463
Volume (m packets)
4,937
100
50
(8)
22
139
33
50
16
1,141
184
19
96
5
160
Source: Company, MOFSL
Highlights from the management interaction
Non-Cotton:
The business has grown significantly, up 26%. Driven by volume
growth in new hybrids and also price appreciation in key products.
Maize:
Area under cultivation is almost stable, with a slight increase of 1%. The
same in the Kharif season was higher v/s that in Rabi due to poor commodity
prices. Acreages increased in Karnataka, Punjab, and Tamil Nadu. Timely rainfall
helped increase the area under cultivation in many states in the Kharif season,
though the area reduced significantly in Gujarat, Andhra Pradesh, and
Telangana. Discouragement by the state government in Telangana and poor
commodity prices have impacted the area under cultivation in many other
states in the Rabi season.
Maize volumes increased by 9% YoY, whereas revenue growth stood at 18% YoY,
on the back of stable contribution from new products.
Rice:
Area under cultivation has increased 8.1% YoY. An increase has been
witnessed in the main states of Telangana, West Bengal, Madhya Pradesh,
Jharkhand, and Bihar. Cultivation of bajra/sunflower is up ~2.4%/~11%, while
jowar is down ~6.6%. Area under wheat cultivation increased by 3%.
Hybrid rice:
Volumes increased by 56% in FY21. Introduction of new hybrids –
7299, 471, and 473 – aided strong growth. The contribution of new hybrids rose
to 68.2% in FY21 from 51% in FY20.
1 June 2021
4
 Motilal Oswal Financial Services
Kaveri Seed
Selection Rice:
Volumes grew by 47% in FY21. There has been a consistent
performance across geographies. Scale up in new products has been on the back
of growth in Chintu, 828, Sampurna, and KV99.
Vegetables:
The management has intensified the R&D pipeline in the last few
years, which has led to the development of a strong pipeline in tomatoes, okra,
etc. The Vegetables segment is growing at a faster pace v/s other crops and
continues to be a key area of focus.
Cotton
acreages were marginally higher on a YoY basis by 1.9%, which is
equivalent to 0.24m acres in FY21. Acreages increased in Telangana, Karnataka
and Punjab, but was lower in Andhra Pradesh, Gujarat, Tamil Nadu, and
Maharashtra.
Cotton prices:
The government has allowed for an MRP increase of INR37 (5%
higher as compared to last year) for FY22. Of which, INR17-20 is expected to be
retained by KSCL and is expected to flow directly to profit.
Guidance:
Overall growth is expected to be in the 10-15% range, majorly driven
by the non-Cotton segment, which is expected to record 15-20% growth in FY22,
supported by growth in volumes and realizations.
The Cotton segment is expected to grow at 5-7% in FY22 as acreages are
expected to remain stable. Realization is expected to increase by 4-5% in FY22.
Market share:
Other than Telangana and Andhra Pradesh, KSCL gained market
share in the Cotton segment across all states. The company managed to gain
0.5% market share, taking its overall share to 17%.
Market share in rice increased to 10% as the company managed to gain share in
FY21, whereas the same in maize is currently close to 10-11%. The size of the
domestic maize market is currently pegged at 85,000-95,000MT.
Products:
Currently, Money Maker is the largest revenue contributor in the
Cotton segment. ATM is expected to continue as a fungus contributor for the
next 2-3 years. Viplav and other hybrid products are expected to support
revenue growth.
Presence:
KSCL has a pan-India presence, with the largest distribution network
as compared to its peers. Currently, the company operates across 26 states and
has a strong presence in South India. It has a lower presence in Goa and J&K.
Employee cost:
Continuous investment on R&D, along with the addition of new
personnel in the R&D department, led to an increase in employee cost. A slight
increase was due (INR40-50m) to disbursement of ESOPs. The number of
permanent employees increased to 1,050 in FY21 from 930 in FY20. Majority of the
employee addition took place in R&D, supply chain, and marketing segments.
Other highlights
Exports
were lower as compared to last year. KSCL saw a 10-12% decline in exports
in FY21. In the next four years, exports are expected to grow at 15-20% CAGR.
Buyback:
By the end of 2QFY21, the company plans to finalize its buyback
program. Total cash on the books stood at INR5.33b as on Mar’21.
Rice is expected to grow at 20% CAGR over the next five years. The Vegetables
segment is expected to record a similar growth CAGR over the next few years.
No new players are expected to enter this industry as the gestation period is
very high in the industry.
1 June 2021
5
 Motilal Oswal Financial Services
Kaveri Seed
Valuation and view
KSCL is on track to diversify from sales of cotton seeds by increasing the share of
rice and vegetables (contribution of non-cotton seed sales to overall sales has
increased to 58% in FY21 v/s 52% in FY20), which are growing at a faster pace
and yielding a higher margin (v/s the Cotton segment).
The management expects stable cotton acreages in FY22 and remains confident
of growing the Cotton segment by 5-7% on the back of higher realizations and
volume growth.
Performance was below our estimates in 4QFY21. However, we increase our
FY22E/FY23E earnings estimate by 6%/10% owing to: a) increasing sales
estimate of the non-Cotton segment, particularly Paddy, b) increasing
realizations in Cotton, and c) higher other income on higher cash.
We value the company at 13x FY23E EPS (in line with its five-year average P/E)
to arrive at a TP of INR830. Maintain Buy.
Exhibit 7: Change in estimates
Earnings change
(INR m)
Revenue
EBITDA
Adj. PAT
Old
FY22E
11,069
3,177
3,212
FY23E
11,867
3,465
3,473
New
FY22E
11,552
3,327
3,409
FY23E
12,551
3,637
3,814
Change
FY22E
FY23E
4%
6%
5%
5%
6%
10%
Source: MOFSL
1 June 2021
6
 Motilal Oswal Financial Services
Kaveri Seed
Financials and valuations
Consolidated Income Statement
Y/E March
Net Sales
Change (%)
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income - Rec.
PBT bef. EO Exp.
EO Expense/(Income)
PBT after EO Exp.
Current Tax
Deferred Tax
Tax Rate (%)
Reported PAT
PAT Adj. for EO items
Change (%)
Margin (%)
FY16
7,449
-35.9
1,875
25.2
274
1,601
2
131
1,729
0
1,729
58
-3
3.2
1,675
1,675
-44.4
22.5
FY17
7,050
-5.4
1,395
19.8
302
1,093
2
344
1,435
592
843
75
-5
8.3
773
1,316
-21.4
18.7
FY18
8,192
16.2
2,218
27.1
251
1,967
6
237
2,198
0
2,198
87
-3
3.8
2,114
2,114
60.6
25.8
FY19
8,094
-1.2
2,116
26.1
230
1,887
5
430
2,311
0
2,311
117
20
5.9
2,174
2,174
2.8
26.9
FY20
9,303
14.9
2,532
27.2
257
2,275
5
456
2,727
0
2,727
118
10
4.7
2,599
2,599
19.5
27.9
FY21
10,363
11.4
2,980
28.8
222
2,758
5
457
3,210
0
3,210
67
31
3.1
3,112
3,112
19.7
30.0
FY22E
11,552
11.5
3,327
28.8
271
3,055
1
572
3,626
0
3,626
218
0
6.0
3,409
3,409
9.5
29.5
(INR m)
FY23E
12,551
8.6
3,637
29.0
293
3,343
1
715
4,057
0
4,057
243
0
6.0
3,814
3,814
11.9
30.4
Consolidated Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Deferred Liabilities
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans and Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability and Prov.
Account Payables
Provisions
Other current liabilities
Net Current Assets
Appl. of Funds
FY16
138
9,134
9,272
-2
0
16
9,286
3,033
1,018
2,015
197
5,064
6,327
5,044
804
94
386
4,320
4,237
83
0
2,007
9,286
FY17
138
10,005
10,143
-7
0
46
10,182
3,322
1,320
2,002
340
6,569
6,358
4,478
854
210
817
5,095
3,026
9
2,060
1,263
10,182
FY18
132
9,992
10,124
-6
168
29
10,315
3,463
1,571
1,892
376
6,226
6,153
4,428
859
139
727
4,340
2,202
116
2,022
1,814
10,315
FY19
126
9,942
10,069
-6
202
68
10,332
4,199
1,800
2,399
384
5,096
7,626
5,612
846
87
1,081
5,180
2,411
72
2,696
2,446
10,332
FY20
121
9,466
9,587
2
182
58
9,829
4,551
2,057
2,494
185
3,839
9,255
6,391
1,180
81
1,603
5,957
2,669
68
3,221
3,297
9,829
FY21
121
12,325
12,445
10
157
11
12,622
4,733
2,279
2,454
311
5,990
10,850
7,195
1,057
141
2,457
6,997
3,584
117
3,296
3,852
12,622
FY22E
121
15,322
15,443
10
157
11
15,620
5,133
2,551
2,582
231
7,890
11,889
7,627
1,266
224
2,772
6,988
3,207
85
3,697
4,901
15,620
(INR m)
FY23E
121
18,588
18,708
10
157
11
18,885
5,533
2,844
2,689
251
10,390
13,132
8,286
1,375
459
3,012
7,592
3,484
92
4,016
5,540
18,885
1 June 2021
7
 Motilal Oswal Financial Services
Kaveri Seed
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 (%)
EBITDA Margin (%)
Net Profit Margin (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Working Capital Turnover (Days)
Leverage Ratio (x)
Current Ratio
Interest Coverage Ratio
Debt/Equity
FY16
27.8
32.3
153.7
5.0
24.7
FY17
21.8
26.8
168.1
3.0
32.2
FY18
35.0
39.2
167.8
3.0
11.7
FY19
36.0
39.8
166.9
3.0
11.3
20.0
18.1
4.3
5.6
21.5
0.4
8.5
25.2
22.5
19.9
21.2
42.0
2
0.8
247
39
208
94
1.5
670
0.0
19.8
18.7
13.6
16.0
33.8
2
0.7
232
44
157
55
1.2
453
0.0
27.1
25.8
20.9
22.5
61.5
2
0.8
197
38
98
75
1.4
326
0.0
26.1
26.9
21.5
24.2
47.9
2
0.8
253
38
109
106
1.5
345
0.0
FY20
43.1
47.3
158.9
3.0
9.5
16.7
15.2
4.5
4.9
17.9
0.4
29.3
27.2
27.9
26.4
28.9
45.4
2
0.9
251
46
105
126
1.6
476
0.0
FY21
51.6
55.3
206.3
4.0
8.8
14.0
13.0
3.5
4.4
15.2
0.6
36.6
28.8
30.0
28.3
30.0
47.7
2
0.8
253
37
126
131
1.6
546
0.0
FY22E
56.5
61.0
256.0
6.0
12.1
12.7
11.8
2.8
3.9
13.6
0.8
39.7
28.8
29.5
24.4
27.6
48.1
2
0.7
241
40
101
148
1.7
2,824
0.0
FY23E
63.2
68.1
310.1
8.0
14.4
11.4
10.6
2.3
3.6
12.4
1.1
54.4
29.0
30.4
22.3
25.2
47.1
2
0.7
241
40
101
148
1.7
3,091
0.0
Consolidated Cash Flow Statement
Y/E March
Net P/L Bef. Tax and EO Items
Depreciation
Interest and Finance Charges
Direct Taxes Paid
(Inc.)/Dec. in WC
CF from Operations
EO Expense
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
CF from Fin. Activity
Inc./Dec. in Cash
Add: Beginning Balance
Closing Balance
FY16
1,729
274
2
58
407
2,355
467
2,822
-262
2,560
-2,114
-4
-2,380
-5
2
-2
-414
-415
28
66
93
FY17
1,435
302
2
75
860
2,525
-245
2,280
-432
1,848
-1,505
-5
-1,943
0
30
-2
-249
-221
116
94
210
FY18
2,198
251
6
87
-621
1,747
0
1,747
-177
1,570
343
2
168
-2,000
-18
-6
-247
-1,985
-71
210
139
FY19
2,311
230
5
117
-1,150
1,279
0
1,279
-744
535
1,130
438
824
-2,000
39
-5
-247
-2,156
-52
139
87
FY20
2,727
257
5
118
-952
1,918
0
1,918
-153
1,765
1,257
21
1,125
-2,404
-10
-5
-247
-3,049
-6
87
81
FY21
3,210
222
5
67
-852
2,519
0
2,519
-308
2,211
-2,151
286
-2,173
0
-47
-5
-274
-285
60
81
141
FY22E
3,626
271
1
218
-966
2,715
0
2,715
-320
2,395
-1,900
0
-2,220
0
0
-1
-411
-412
83
141
224
(INR m)
FY23E
4,057
293
1
243
-404
3,704
0
3,704
-420
3,284
-2,500
0
-2,920
0
0
-1
-548
-549
235
224
459
1 June 2021
8
 Motilal Oswal Financial Services
Kaveri Seed
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”,
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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
1 June 2021
9
 Motilal Oswal Financial Services
Kaveri Seed
********************************************************************************************************************************
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.
1 June 2021
10