21 June 2021
Update | Sector: Oil & Gas
HPCL
Neutral
BSE SENSEX
52,574
S&P CNX
15,747
CMP: INR303
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Battling a three headed-monster
TP: INR310 (+2%)
Loss of marketing leverage, rising debt, and project execution key risk
HPCL, the darling of deregulation due to its highest leverage to marketing, is soon
going to lose its crown with the addition of 5mmtpa/2mmtpa refining capacity at
Visakhapatnam/
Mumbai by the end of FY22/CY21. Marketing will account for
only 52% of total consolidated EBITDA in FY23E v/s 88% in FY21.
Due to
Visakhapatnam
expansion, Rajasthan greenfield project, and marketing,
consolidated debt is expected to rise to INR641b in FY23E from INR427b in FY21,
1.5x its current market capitalization.
The residual upgradation project (slurry hydrocracker) at Visakhapatnam is of a
relatively new technology, with very few precedents globally. It is likely to take
longer to stabilize, thereby putting pressure on HPCL’s GRMs
.
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
HPCL IN
1,452
429.1/5.8
312 / 163
6/29/-16
1811
2023E
2,675
119.3
63.9
41.9
30.3
281.8
1.3
15.4
6.3
56.6
7.1
1.1
8.5
8.0
(5.5)
Loss of marketing leverage
Financials & Valuations (INR b)
Y/E March
2021 2022E
Sales
2,332 2,691
EBITDA
160.0
93.7
Adj. PAT
106.6
49.0
Adj. EPS (INR)
70.0
32.2
EPS Gr. (%)
192.8 (54.0)
BV/Sh.(INR)
249.8 263.6
Ratios
Net D:E
1.1
1.3
RoE (%)
30.9
12.5
RoCE (%)
14.9
5.6
Payout (%)
31.0
57.2
Valuations
P/E (x)
4.2
9.2
P/BV (x)
1.2
1.1
EV/EBITDA (x)
5.5
10.2
Div. Yield (%)
7.3
6.2
FCF Yield (%)
13.8 (19.3)
Debt to rise to INR641b by FY23E
By FY22-end, HPCL is expected to add 5mmtpa/2mmtpa capacity at
Visakhapatnam/Mumbai, taking its standalone refining capacity in
FY22E/FY23E to 18 mmtpa/22mmtpa.
Combing the commensurate stakes in MRPL (16.95%), HMEL (49%), and the
upcoming Rajasthan refinery (74%), we expect the marketing/refining ratio
to decline to 1.4x/1.1x in FY23E/FY25E from 1.6x in FY21.
Our estimate suggests that contribution of marketing to consolidated
EBITDA would decline to 52% in FY23E from 88% in FY21. This compares
with 43% for BPCL (62% in FY21) and 32% for IOCL (54% in FY21) in FY23E.
Major projects under execution are: 1) the ~INR250b Visakhapatnam
refinery expansion, 2) the ~INR440b greenfield Rajasthan refinery, and 3)
ongoing expansion in marketing and pipelines in addition to the smaller
ones in JVs.
As a result of these projects, we expect consolidated net debt to rise further
to INR566b in FY23E from INR421b in FY21, almost 1.4x its current m-cap.
We expect interest costs to rise to INR13.3b by FY23E from INR9.6b in FY21.
Its most recent and major refinery expansion had taken 1.5-2 years to
stabilize. The Kochi refinery also took almost 1.5 years to completely
stabilize. Expansion at Visakhapatnam is expected to be completed by FY22-
end, while the slurry hydrocracker is likely to come up only by CY22-end.
The above mismatch would result in implied complexity suffering till the
time all units are stabilized, thereby adversely impacting GRMs for
Visakhapatnam.
The slurry hydrocracker itself is a relatively new technology, without a large
number of commercial installations. In fact, a
CY20 paper
highlights only
two commercial installations globally. Lack of sufficient experience in
stabilization of such a complex package is likely to delay stabilization of
Visakhapatnam expansion.
Shareholding pattern (%)
Project execution risk
As On
Mar-21 Dec-20 Mar-20
Promoter
53.5
51.6
51.1
DII
18.9
20.8
21.7
FII
16.3
15.9
17.7
Others
11.3
11.7
9.5
FII Includes depository receipts
Stock Performance (1-year)
HPCL
Sensex - Rebased
375
300
225
150
Swarnendu Bhushan- Research Analyst
(Swarnendu.Bhushan@MotilalOswal.com
Sarfraz Bhimani - Research Analyst
(Sarfraz.Bhimani@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
HPCL
Valuation and recommendation
We estimate a cumulative FCFF loss of INR112b in FY22 and FY23 due to high
capex.
The stock trades at 7.1x FY23E P/E and 8.5x FY23E EV/EBITDA. We value the
stock at 1.1x FY23E P/BV and recommend a
Neutral
rating on the stock with a
TP of INR310/share. Major risk to our call would be sustainability of high
marketing margin.
Exhibit 2: D/E ratio to increase to 1.4x in FY23E
D/E Ratio
1.3
1.2
0.9
1.4
1.4
Exhibit 1: Marketing/refining ratio to decrease
Marketing/Refining (mmt/mmt)
1.5
1.6
1.5
1.4
1.3
1.1
1.1
0.8
0.8
0.8
FY20
FY21
FY22E
FY23E
FY24E
FY25E
FY15
FY16
FY17
FY18
FY19
FY20
FY21 FY22E FY23E
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 3: BPCL’s Kochi refinery took more than 17 months to stabilize post expansion
5.0
2.5
0.0
(2.5)
(5.0)
BPCL's Kochi refinery
Premium over SG GRM (USD/bbl)
Source: Company, MOFSL
Exhibit 4: SG GRM stands at USD2/bbl in 1QFY22
12
8
4
0
-4
SG GRM
Average (USD/bbl)
Exhibit 5: Gross marketing margin at INR0.6-4.1/liter in
1QFY22
Gross marketing margin (INR/liter)
12.0
9.0
6.0
3.0
0.0
Petrol
Diesel
Source: Reuters, MOFSL
Source: IOCL, MOFSL
21 June 2021
2
 Motilal Oswal Financial Services
HPCL
Story in charts
Exhibit 6: Refining throughput/marketing sales of HPCL
Marketing Sales (mmt)
37
Refinery Throughput (mmt)
39
40
40
42
8.2
Exhibit 7: GRM trend of HPCL
Prem/(Disc) to Singapore
Singapore GRM
7.7
5.6
3.4
6.4
2.8
2.1
7.5
5.8
7.3
7.4
4.9
5.0
3.2
3.9
1.0
5.0
5.0
HPCL Blended GRM
29
30
31
32
34
35
37
16
16
15
16
17
18
18
18
17
16
18
22
5.2
6.7 6.2
3.7
3.6
0.5
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 8: EBITDA v/s PAT (standalone)
EBITDA (INRb)
PAT (INRb)
106 107 114
79
34
9
39
8
52
17
54
27
37
62
64
60
36
51
107
47
60
159
119
93
Exhibit 9: Standalone return ratios
Net debt/ Equity
32
2.3 2.4 2.1
7
12
7
1.1
0.8 0.8 0.8 0.9
13
18
22
RoE (%)
29
23
1.3
1.2
33
1.4 1.4
15
13
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 10: One-year forward P/B, HPCL trades at par with its long-term average
P/B (x)
3.2
Avg (x)
Max (x)
Min (x)
+1SD
-1SD
2.7
2.5
1.7
1.0
1.7
1.2
0.7
0.4
1.1
0.2
Source: Company, MOFSL
21 June 2021
3
 Motilal Oswal Financial Services
HPCL
Financials and valuations
Consolidated Income Statement
Y/E March
Total Income from Operations
Change (%)
EBITDA
Margin (%)
Depreciation
EBIT
Interest Charges (incl. forex)
Other Income
PBT bef. JVs/associates EO
EO Items
Minority Interest
PBT after EO Exp.
Total Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
Consolidated Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Total Loans
Deferred Tax Liabilities
Capital Employed
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans and Adv.
Inventory
Account Receivables
Cash and Bank Balance
Cash
Bank Balance
Loans and Advances
Others
Curr. Liability and Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
E: MOFSL estimates
FY16
1,779.1
-22.8
82.8
4.7
28.5
54.3
7.2
10.8
57.9
0.0
9.4
67.4
20.6
30.6
46.7
46.7
212.9
2.6
FY16
3.4
163.2
166.6
221.6
50.3
438.6
336.6
23.2
91.8
243.7
133.5
37.8
1.5
1.4
0.2
70.8
0.0
256.9
94.6
140.6
21.7
-13.3
439
FY17
1,874.9
5.4
108.8
5.8
27.8
81.0
6.1
13.8
88.8
0.0
23.2
112.0
29.6
26.4
82.4
82.4
76.2
4.4
FY17
10.2
200.6
210.7
180.3
61.5
452.5
368.6
18.7
117.7
283.6
186.3
40.9
1.4
1.1
0.2
5.3
49.7
350.7
127.0
199.1
24.5
-67.1
453
FY18
2,195.1
17.1
107.1
4.9
28.3
78.8
6.2
15.3
87.9
0.0
13.2
101.1
28.9
28.6
72.2
72.2
-12.4
3.3
FY18
15.2
240.1
255.3
205.4
68.0
528.7
386.8
40.1
128.8
322.5
186.1
55.9
12.9
1.2
11.7
10.4
57.1
368.0
157.8
185.0
25.2
-45.5
529
FY19
2,754.9
25.5
115.3
4.2
30.9
84.4
7.9
14.5
91.1
0.0
9.3
100.4
33.5
33.4
66.9
66.9
-7.3
2.4
FY19
15.2
288.8
304.0
260.4
74.0
638.3
416.2
95.2
143.0
395.5
204.4
56.7
2.2
2.0
0.2
19.9
112.3
435.1
190.5
223.2
21.4
-39.7
638
FY20
2,690.9
-2.3
56.6
2.1
33.7
22.9
11.4
16.8
28.4
-10.0
-4.6
13.7
-12.6
-92.0
26.4
36.4
-45.6
1.4
FY20
15.2
294.6
309.8
393.9
54.9
758.6
489.4
171.7
144.0
336.8
193.3
39.3
2.2
2.0
0.2
18.2
83.8
410.5
114.7
268.9
26.9
-73.7
759
FY21
2,332.5
-13.3
160.0
6.9
36.3
123.8
9.6
26.4
140.6
0.0
1.4
142.0
35.3
24.9
106.6
106.6
192.8
4.6
FY21
14.5
366.3
380.8
427.1
54.6
862.5
505.9
253.4
150.9
397.3
287.6
68.7
5.7
4.8
0.9
11.1
24.1
479.1
178.0
272.3
28.8
-81.8
862
FY22E
2,691.0
15.4
93.7
3.5
39.5
54.2
12.6
11.2
52.8
0.0
12.7
65.5
16.5
25.2
49.0
49.0
-54.0
1.8
FY22E
14.5
387.3
401.8
533.8
54.6
990.2
666.1
201.7
150.9
474.8
331.8
79.3
28.5
27.5
0.9
11.1
24.1
506.5
205.3
272.3
28.8
-31.7
990.2
(INR b)
FY23E
2,675.3
-0.6
119.3
4.5
48.2
71.1
13.3
13.2
71.0
0.0
14.4
85.4
21.5
25.2
63.9
63.9
30.3
2.4
FY23E
14.5
415.0
429.5
640.6
54.6
1,124.8
767.9
189.7
150.9
518.3
329.9
78.8
74.4
73.4
0.9
11.1
24.1
505.3
204.1
272.3
28.8
13.0
1,124.8
21 June 2021
4
 Motilal Oswal Financial Services
HPCL
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Coverage Ratio
Net Debt/Equity
Consolidated Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest expense
Interest income and dividend
Direct Taxes Paid
MI and others
(Inc.)/Dec. in WC
CF from Operations
(Inc.)/Dec. in FA
Free Cash Flow
Others
CF from Investments
Inc./(Dec.) in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc./Dec. in Cash
Opening Balance
Closing Balance
FY16
30.7
49.3
109.3
9.6
37.5
9.7
6.0
2.7
0.4
8.1
3.2
12.0
30.6
10.1
10.3
4.9
4.1
27
8
19
0.9
7.5
1.3
FY16
67.4
28.5
6.8
-4.2
-12.1
-3.9
-15.8
66.5
-48.2
18.3
13.6
-37.5
-12.4
-7.0
-17.5
-36.7
-7.7
9.1
1.4
FY17
54.0
72.2
138.2
22.8
50.8
5.5
4.1
2.1
0.3
5.8
7.7
28.9
43.7
17.9
18.7
4.4
4.1
36
8
25
0.8
13.3
0.8
FY17
112.0
27.8
6.1
-3.5
-21.8
-24.6
6.6
102.5
-58.5
44.0
-2.8
-60.4
5.3
-5.9
-41.8
-42.4
-0.3
1.4
1.1
FY18
47.4
66.0
167.5
16.2
42.8
6.3
4.5
1.8
0.3
6.0
5.5
28.4
31.0
15.8
17.0
4.7
4.2
31
9
26
0.9
12.8
0.8
FY18
101.1
28.3
6.2
-4.0
-20.0
-10.7
9.4
110.4
-67.0
43.3
3.7
-66.0
-11.2
-5.1
-27.9
-44.2
0.1
1.1
1.2
FY19
43.9
64.1
199.5
15.2
43.8
6.7
4.6
1.5
0.3
6.2
5.1
-17.8
23.9
12.9
15.1
5.2
4.3
27
8
25
0.9
10.7
0.8
FY19
100.4
30.9
7.9
-4.0
-20.8
-4.5
-24.3
85.5
-112.7
-27.1
9.3
-110.7
51.0
-8.5
-16.5
26.0
0.8
1.2
2.0
FY20
23.9
46.0
203.3
9.3
77.2
12.4
6.4
1.5
0.3
14.9
3.1
-54.6
11.9
12.0
10.5
4.2
3.5
26
5
16
0.8
2.0
1.3
FY20
13.7
33.7
11.4
-4.0
-17.2
9.7
7.4
54.7
-137.9
-83.2
5.6
-141.7
114.6
-12.9
-17.3
87.0
0.1
2.0
2.0
FY21
70.0
93.7
249.8
21.7
31.0
4.2
3.2
1.2
0.4
5.5
7.3
40.8
30.9
14.9
20.8
3.4
2.7
45
11
28
0.8
12.8
1.1
FY21
142.0
36.3
9.6
-4.0
-31.9
-2.7
28.9
178.3
-116.1
62.2
7.0
-122.8
2.9
-16.0
-14.8
-52.8
2.8
2.0
4.8
FY22E
32.2
58.1
263.6
18.4
57.2
9.2
5.1
1.1
0.4
10.2
6.2
-57.0
12.5
5.6
7.6
3.0
2.7
45
11
28
0.9
4.3
1.3
FY22E
65.5
39.5
0.0
0.0
-16.5
0.0
-27.4
61.1
-148.0
-86.9
30.9
-117.1
106.8
0.0
-28.0
78.7
22.7
4.8
27.5
FY23E
41.9
73.5
281.8
23.7
56.6
7.1
4.0
1.1
0.4
8.5
8.0
-16.2
15.4
6.3
8.1
2.6
2.4
45
11
28
1.0
5.3
1.3
(INR b)
FY23E
85.4
48.2
0.0
0.0
-21.5
0.0
1.2
113.3
-138.0
-24.7
0.0
-138.0
106.8
0.0
-36.1
70.6
45.9
27.5
73.4
21 June 2021
5
 Motilal Oswal Financial Services
HPCL
NOTES
21 June 2021
6
 Motilal Oswal Financial Services
HPCL
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.
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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
********************************************************************************************************************************
The associates of MOFSL may have:
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financial interest in the subject company
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actual/beneficial ownership of 1% or more securities in the subject company
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received compensation/other benefits from the subject company in the past 12 months
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 Motilal Oswal Financial Services
HPCL
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.
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acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
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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)
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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.
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