BSE SENSEX
29,365
S&P CNX
9,119
Ashok Leyland
CMP: INR85
TP: INR98(+15%)
Buy
EGR Solution for BS4 could give competitive advantage
Focus on making business acyclic
22 April 2017
Update
| Sector:
Automobiles
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
M.Cap. (INR b)
M.Cap. (USD b)
Avg Val, INRm
Free float (%)
AL IN
2,846
112 / 74
-4/-6/-33
233.1
3.6
1088
49.6
We attended the Ashok Leylands’ Global Conference 2017, themed ‘Conquer New
Frontiers’. Mr Dheeraj Hinduja (Chairman) and Mr Vinod Dasari (MD) highlighted
initiatives taken by AL to leverage on evolving CV industry dynamics and making
business cyclical by reducing India truck business revenues to 50% in 5 years (from ~70%
currently).
Key highlights from the conference:
Financials Snapshot (INR b)
Y/E March
2017E 2018E 2019E
Sales
EBITDA
NP
Adj. EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
RoE (%)
RoCE (%)
P/E (x)
P/BV (x)
196.6 217.9 249.2
22.0
12.0
4.2
8.3
21.8
20.6
15.0
20.1
3.9
24.8
14.7
5.2
22.2
24.5
22.3
17.5
16.5
3.5
29.9
18.8
6.6
27.7
28.4
24.9
20.1
12.9
3.0
Expects to gain competitive advantage driven by EGR solution for BS3 due to
lower initial cost and operating cost
While near term CV demand is expected to be weak, macro parameters
suggests recovery is no too far.
AL’s confidence in conversion of BS3 inventory to BS4 is based on EGR
technology. Expects conversion cost at INR300-400m for its 10k units
inventory.
AL is prepared for changing CV industry environment to gain competitive
advantage by not only delivering high quality service and spares, but also
offering cost effective digitally enabled trucks.
AL is highly focused on making business acyclical by reducing India truck
business revenues to 50% in 5 years (from ~70% currently), by growing share
of LCVs, Exports, Spare parts and Defence
Shareholding pattern (%)
As On
Mar-17 Dec-16 Mar-16
Promoter
50.4
50.4
50.4
DII
9.9
8.9
10.0
FII
17.9
11.9
6.4
Others
21.9
28.8
33.3
FII Includes depository receipts
Stock Performance (1-year)
Ashok Leyland
Sensex - Rebased
130
115
100
85
70
EGR based solution to BS4 could give AL competitive advantage
AL believes its BS4 solution based on iEGR technology (v/s SCR technology
adopted by competitors) gives it significant competitive advantage with
potential to gain market share.
iEGR not only results in lower cost by INR40-42k/unit than SCR, but also offers
~10% higher mileage than BS3, lower maintenance cost, and better payload.
Also, SCR would result in higher operating costs due to additional
consumption of 1ltr of DEF (Urea) for 10ltr of diesel consumption, but
availability of DEF is also a challenge.
Near term demand weak, but macro indicators suggests recovery
While demand in Apr-17 is expected to be weak, Mr Dasari is confident of
recovery in demand driven by a) improving sentiments and economy, b) pick-
up in infrastructure, and c) pick-up in mining.
He doesn't expect CV demand to be materially impacted by implementation
of GST led lower wait time at state borders.
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.
Jinesh Gandhi
(Jinesh@MotilalOswal.com); +91 22 6129 1524
Jigar Shah
(Jigar.Shah@MotilalOswal.com); +91 22 6129 1534

Ashok Leyland
Confident of converting BS3 inventory to BS4 due to EGR technology
AL is confident of converting BS3 vehicle inventory to BS4 compliant as its BS4
solution is based on EGR (v/s SCR based solution for the industry).
It expects incremental cost of conversion at INR30-40k/vehicle (over & above
engine cost), and hence impact on AL would be under INR300-400m.
It has already converted ~250 BS3 vehicles to BS4. It is confident of selling BS3
engines/part in replacement market
Conquer new frontiers in evolving industry environment
AL believes operating environment for the CV industry is changing, with focus
shifting from world class products to services/solutions, and from innovative
trucks to digitally enabled trucks.
AL is prepared to leverage on these changing trends to gain competitive
advantage by not only delivering high quality service and spares (several
initiatives to further improve availability/quality of service and spares at right
price and time), but also offering cost effective digitally enabled trucks (by fitting
telematic device by default which can be connected to AL’s i-Alert app).
This in turn would not only help significantly improving revenues of spares for
AL (30% growth in FY17) and servicing fees for dealer (39% growth in FY17), but
also enable improvement in fleet uptime and efficiencies through analytics
enabled by digitally connected trucks.
LCVs – target to double market share to 30% by launching 1 product per
quarter
It is targeting to double its market share from 15% to 30% in 4 years, by
launching one product every quarter in 2-7 tons category.
It has sufficient capacity at 100k (v/s current volumes of ~32k), which can be
further de-bottlenecked.
Exports – targeting 33% of volumes from exports
AL’s focus on exports have evolved from exporting buses to MENA markets to
targeting wider markets by making all products export ready.
It is targeting markets like India and hence focusing on 6 markets of SAARC, SE
Asia, LatAm, Africa, ME and CIS. It has recently shifted its headquarters for
international business to Dubai.
It is targeting exports to contribute ~33% to volumes (from current <10%) in
next 5 years. It has developed micro market strategy for each of their key
markets, and would be open to set-up assembly units if required (for eg it is
setting up 2 assembly lines in Kenya and Ivory Coast to benefit from regional
trade treaties).
Spare parts – huge headroom to grow
AL has taken initiatives (under SPARK program) to unlock potential of spare
parts business. This program would focus on getting right mix of products at
right price, at right time and attain right level of market coverage
This coupled with MaxServe program, which is focused on improving service
market share, will help to boost spare parts revenues for AL.
22 April 2017
2

Ashok Leyland
In spare parts, it faces competition from two sources i.e its own vendor and
spurious parts (globally for players like Scania, 85% of aftermarkets part are
supplied by Scania). For spurious parts, it is using law enforcement agencies by
conduction raids on spurious part dealers. For competition from its own
vendors, there is disincentive for vendor in form of risk of AL getting additional
supplier for the same part.
It sees multi fold growth opportunity in spare parts business, as contribution of
spares to ALs revenues is just ~7% (v/s up to 30% for global players).
Defence business target of 10x revenues, but long gestation period
It has reworked its strategy for defence business and would offer wider product
portfolio from current 4x4 trucks.
Although defence business has long gestation, it is very sticky business due to
approval process involved.
It has already won 12 out of 13 procurement tenders, but supplies would be
dependent on Army starting procurement. Similarly, for Mounted Gun project
all the 3 players in the fray have AL as their logistical solution provider.
It expects strong traction in defence business after 2-3 years, but expects
normal growth in the interim driven by existing defence kit business (including
exports). It is targeting revenues of INR50b (10x from current levels) in medium
term.
Hinduja family focused on 4 core areas
Mr Dheeraj Hinduja, Chairman elaborated on Hinduja family’s philosophy of
business owned by family but managed professionally. Family focuses on 4 areas
viz strategy, M&A and JVs, Governance and Risk management, leaving day to
day operations to the professional management.
AL’s vision is to be among global top-10 M&HCV and top-5 bus players by
volumes. In 2010 when this vision was crystallised, AL was ranked 17th in
M&HCV. It is now ranked 12
th
in M&HCV and 4
th
in buses.
Valuation & view:
We believe AL is very well placed to defend its market share in the Indian CV
industry driven by its differentiated approach to provide cost effective solutions.
Further, we find merit in its strategy to reduce dependence on the Indian truck
business, though we expect it to play out in medium term. In near term, we see
CV demand to remain muted due to weak freight availability, implementation of
GST and sharp increase in CV prices. Mandatory scrappage incentive scheme and
regulations on overloading could significantly boost demand for CV.
AL trades at 16.5x/12.9 FY18E/FY19E EPS and EV/EBITDA of 9.8x/7.7x
respectively. Maintain Buy with target price of ~INR98 (~9.3x FY19 EV/EBITDA, in
line with LPA).
22 April 2017
3

Ashok Leyland
Ashok Leyland | Story in Charts:
Exhibit 2: Margin to stabilize to 11-12% led by lower volume
visibility
EBITDA (INR b)
14.4
7.0
7.6
11.5
EBITDA Margins (%)
11.2
11.4
12.0
Exhibit 1: Revenue to row at a CAGR of ~13% over FY17-19E
Revenues (INR m)
38.8
36.4
(3.3)
(20.3)
4.4
Growth (%)
10.9
1.7
9
FY13
FY14
FY15
FY16
FY17E
FY18E
FY19E
FY13
2
FY14
10
FY15
22
FY16
22
FY17E
25
FY18E
30
FY19E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 3: Capex/investments to moderate significantly
CFO
Capex (incl Invest)
22
19
5
-4
8
-12
FY13
FY14
FY15
FY16
6
-1
18
1
18
4
17
-5
23
-10
26
-6
FCF
13
20
Exhibit 4: Focused on reducing debt levels
Net Debt (INR b)
43.4
46.8
25.4
10.7
5.7
0.4
12
1
11
-11
FY12
FY17E FY18E FY19E
Source: Company, MOSL
FY13
FY14
FY15E
FY16E
FY17E
FY18E
-10.8
FY19E
Source: Company, MOSL
22 April 2017
4

Ashok Leyland
Key operating metrics
Exhibit 1: Snapshot of Revenue model
000 units
HCV Passenger (units)
Growth (%)
HCV Goods (units)
Growth (%)
LCVs (units)
Growth (%)
DOST (units)
Growth (%)
Non-DOST JV (units)
Growth (%)
Total volumes ex Dost (units)
Growth (%)
Total Volumes incl Dost (units)
Growth (%)
ASP (INR/unit)
Growth (%)
Net Sales (INR b)
Growth (%)
72
21.1
112
54.3
129
15.4
125
-3.3
64
17.4
64
17.4
1,133
94
47.2
94
47.2
1,188
95
1.1
103
9.2
1,255
80
-16.3
115
11.5
1,089
0
0
0
FY10
18
-6.4
44
32.9
1
-17.1
0
FY11
25
36.5
68
53.4
1
-20.7
0
FY12
26
2.2
68
0.4
1
27.7
8
FY13
23
-8.9
55
-18.8
1
-29.7
35
359.9
0
FY14
19
-18.0
41
-26.1
0
-47.0
28
-20.0
1
0.0
61
-23.9
89
-22.1
1,113
2.2
99
-20.3
FY15
21
7.7
57
39.0
2
306.0
25
-9.7
0
-0.5
79
30.9
105
17.4
1,293
16.1
136
36.4
FY16
30
35.0
80
40.0
1
-20.0
29
15.0
0
0.3
111
40.0
140
33.9
1,340
3.7
188
38.8
FY17E
32
5.0
82
2.6
1
8.0
30
0.0
0
0.3
115
3.3
145
3.3
1,355
1.1
197
4.4
FY18E
36
15.0
84
2.5
2
20.0
36
20.0
1
0.3
122
6.2
158
9.1
1,377
1.6
218
10.9
FY19E
40
10.0
90
7.0
3
100.0
41
15.0
1
0.5
133
9.2
175
10.7
1,423
3.3
249
14.4
Source: Company, MOSL
22 April 2017
5

Ashok Leyland
Financials and Valuations
Income Statement
Y/E March
Volumes ('000 units)
Growth (%)
Net Sales
Change (%)
EBITDA
Change (%)
EBITDA Margins (%)
Depreciation
EBIT
Interest & Fin. Charges
Other Income
PBT
Tax
Effective Rate (%)
Rep. PAT
Change (%)
% of Net Sales
Adjusted PAT
Change (%)
2014
89
-22.1
99,434
-20.3
1,666
-81.0
1.7
3,770
-2,105
4,529
665
-912
(1,206)
132.2
294
-93.2
-93.2
-4,763
-385.4
2015
105
17.4
135,622
36.4
10,266
516.4
7.6
4,163
6,103
3,935
1,245
4,422
1,074
24.3
3,348
1,039.6
1,039.6
2,339
-149.1
2016
140
33.9
188,216
38.8
21,660
111.0
11.5
4,437
17,223
2,735
1,099
11,692
4,474
38.3
7,218
115.6
115.6
11,112
375.1
2017E
145
3.3
196,556
4.4
22,035
1.7
11.2
4,880
17,155
1,327
1,210
17,039
5,004
29.4
12,034
66.7
66.7
12,034
8.3
2018E
158
9.1
217,882
10.9
24,832
12.7
11.4
5,061
19,770
1,204
1,575
20,141
5,438
27.0
14,703
22.2
22.2
14,703
22.2
(INR Million)
2019E
175
10.7
249,177
14.4
29,908
20.4
12.0
5,399
24,510
1,023
2,060
25,547
6,770
26.5
18,777
27.7
27.7
18,777
27.7
Balance Sheet
Y/E March
Sources of Funds
Share Capital
Reserves
Net Worth
Loans
Deferred Tax Liability
Foreign currency translation
Capital Employed
Application of Funds
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Curr.Assets, L & Adv.
Inventory
Sundry Debtors
Cash & Bank Balances
Loans & Advances
Current Liab. & Prov.
Sundry Creditors
Other Liabilities
Provisions
Net Current Assets
Application of Funds
E: MOSL Estimates
2014
2,661
41,818
44,479
46,903
4,068
-
95,450
2015
2,846
48,341
51,187
32,913
5,103
-
89,203
2016
2,846
52,296
55,141
26,360
5,356
-
86,857
2017E
2,846
59,120
61,965
17,860
6,204
-
86,029
2018E
2,846
66,975
69,821
15,360
7,211
-
92,392
(INR Million)
2019E
2,846
78,049
80,895
12,860
8,488
-
102,243
86,723
30,124
56,599
1,815
27,897
41,769
11,887
12,990
117
16,775
32,630
22,142
8,929
1,560
9,139
95,450
85,553
32,997
52,556
1,201
26,488
49,592
13,985
12,577
7,513
15,517
40,635
28,283
9,005
3,347
8,958
89,203
87,469
36,932
50,537
757
19,179
62,080
17,306
12,509
15,681
16,583
46,999
25,627
14,903
6,469
15,081
85,553
89,976
41,812
48,164
1,250
21,179
65,268
18,073
18,848
12,192
16,155
49,832
29,618
13,463
6,751
15,437
86,029
97,476
46,873
50,603
1,250
23,179
73,754
20,034
20,893
14,919
17,908
56,393
32,832
14,923
8,638
17,361
92,392
102,476
52,272
50,204
1,250
24,179
90,976
22,911
23,894
23,691
20,480
64,365
37,547
17,067
9,751
26,610
102,243
22 April 2017
6

Ashok Leyland
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
EPS Fully Diluted
EPS Growth (%)
Cash EPS
Book Value per Share
DPS
Payout (Excl. Div. Tax) %
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price to Book Value
Dividend Yield (%)
Profitability Ratios (%)
ROE
RoCE
RoIC
Turnover Ratios
Debtors (Days)
Inventory (Days)
Creditors (Days)
Working Capital (Days)
Fixed-Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
Cash flow Statement
Y/E March
OP/(Loss) before Tax
Interest/Dividends Received
Depreciation & Amortisation
Direct Taxes Paid
(Inc)/Dec in Working Capital
Other Items
CF from Oper. Activity
Extra-ordinary Items
CF after EO Items
(Inc)/Dec in FA+CWIP
Free Cash Flow
CF from Inv. Activity
Inc/(Dec) in Debt
Interest Rec./(Paid)
Dividends Paid
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Beginning Balance
Closing Balance
E: MOSL Estimates
2014
-1.8
-1.8
-385.4
-0.4
16.7
0.0
0.0
-47.6
-228.4
159.9
2.7
5.1
0.0
-10.7
0.5
1.1
48
44
81
10
1.8
1.1
2014
-912
220
3,789
-297
3,701
-495
6,005
0
6,005
-2,071
3,935
-1,102
1,827
-4,446
-1,868
-4,486
417
52
469
2015
0.8
0.8
-145.9
2.3
18.0
0.45
54.8
103.7
37.3
25.9
2.0
4.7
0.5
4.9
6.0
7.7
34
38
76
-5
2.6
0.6
2015
4,422
290
4,182
-502
7,049
2,906
18,347
0
18,347
-2,059
16,288
1,015
-14,239
-4,219
0
-11,791
7,571
469
8,040
2016
3.9
3.9
375.1
5.5
19.4
1.0
25.6
21.8
15.6
11.7
1.3
4.4
1.2
20.9
12.8
20.2
24
34
50
8
3.7
0.5
2016
11,692
485
4,489
-4,409
-1,276
6,744
17,726
0
17,726
-1,425
16,301
3,876
-7,834
-2,962
-1,536
-12,332
9,270
8,040
17,310
2017E
4.2
4.2
8.3
5.9
21.8
1.5
35.5
20.1
14.3
11.3
1.3
3.9
1.8
20.6
15.0
23.6
35
34
55
14
4.1
0.3
2017E
17,155
1,210
4,880
-4,156
-2,541
0
16,548
0
16,548
-3,000
13,548
-5,000
-8,500
-1,327
-5,135
-14,962
-3,414
17,310
13,896
2018E
5.2
5.2
22.2
6.9
24.5
2.0
38.7
16.5
12.3
9.8
1.1
3.5
2.3
22.3
17.5
27.6
35
34
55
14
4.3
0.2
2018E
19,770
1,575
5,061
-4,431
803
0
22,778
0
22,778
-7,500
15,278
-9,500
-2,500
-1,204
-6,847
-10,551
2,727
13,896
16,622
2019E
6.6
6.6
27.7
8.5
28.4
2.3
34.1
12.9
10.0
7.7
0.9
3.0
2.6
24.9
20.1
33.9
35
34
55
14
5.0
0.2
(INR Million)
2019E
24,510
2,060
5,399
-5,493
-478
0
25,997
0
25,997
-5,000
20,997
-6,000
-2,500
-1,023
-7,703
-11,226
8,771
16,622
25,394
22 April 2017
7

Disclosures
This document has been prepared by Motilal Oswal Securities Limited (hereinafter referred to as Most) to provide information about the company (ies) and/sector(s), if any, covered in the report and may be distributed by it
and/or its affiliated company(ies). This report is for personal information of the selected recipient/s and does not construe to be any investment, legal or taxation advice to you. This research report does not constitute an
offer, invitation or inducement to invest in securities or other investments and Motilal Oswal Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not for public distribution
and has been furnished to you solely for your general information and should not be reproduced or redistributed to any other person in any form. This report does not constitute a personal recommendation or take into
account the particular investment objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, investors should consider whether it is suitable for their
particular circumstances and, if necessary, seek professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as up, and investors may realize losses
on any investments. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur.
MOSt and its affiliates are a full-service, integrated investment banking, investment management, brokerage and financing group. We and our affiliates have investment banking and other business relationships with a some
companies covered by our Research Department. Our research professionals may provide input into our investment banking and other business selection processes. Investors should assume that MOSt and/or its affiliates are
seeking or will seek investment banking or other business from the company or companies that are the subject of this material and that the research professionals who were involved in preparing this material may educate
investors on investments in such business . The research professionals responsible for the preparation of this document may interact with trading desk personnel, sales personnel and other parties for the purpose of
gathering, applying and interpreting information. Our research professionals are paid on twin parameters of performance & profitability of MOSt.
MOSt generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.
Additionally, MOSt generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of any companies that the analysts cover. Our salespeople, traders, and
other professionals or affiliates may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and
investing businesses may make investment decisions that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing among other things,
may give rise to real or potential conflicts of interest. MOSt and its affiliated company(ies), their directors and employees 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 affiliates of MOSt even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
Reports based on technical and derivative analysis center on studying charts company's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a
company's fundamental analysis. In addition MOST has different business segments / Divisions with independent research separated by Chinese walls catering to different set of customers having various objectives, risk profiles, investment horizon,
etc, and therefore may at times have different contrary views on stocks sectors and markets.
Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt MOSt or any of its affiliates or employees
from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSt or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSt 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. The information contained herein is based on publicly
available data or other sources believed to be reliable. Any statements contained in this report attributed to a third party represent MOSt’s interpretation of the data, information and/or opinions provided by that third party
either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. This Report is not intended to be a complete statement or summary of the securities, markets or
developments referred to in the document. While we would endeavor to update the information herein on reasonable basis, MOSt and/or its affiliates are under no obligation to update the information. Also there may be
regulatory, compliance, or other reasons that may prevent MOSt and/or its affiliates from doing so. MOSt or any of its affiliates or employees shall not be in any way responsible and liable for any loss or damage that may
arise to any person from any inadvertent error in the information contained in this report. MOSt or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any
matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The recipients of this report should rely on their own
investigations.
This report is intended for distribution to institutional investors. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision based on this
report or for any necessary explanation of its contents.
Most and it’s associates may have managed or co-managed public offering of securities, may have received compensation for investment banking or merchant banking or brokerage services, may have received any
compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months.
Most and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
Subject Company may have been a client of Most or its associates during twelve months preceding the date of distribution of the research report
MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise of over 1 % at the end of the month immediately preceding the date of publication of the research in the securities mentioned
in this report. To enhance transparency, MOSt has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report.
Motilal Oswal Securities Limited is registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014. SEBI Reg. No. INH000000412
Pending Regulatory inspections against Motilal Oswal Securities Limited:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold inquiry
and adjudge violation of SEBI Regulations; MOSL replied to the Show Cause Notice whereby SEBI granted us an opportunity of Inspection of Documents. Since all the documents requested by us were not covered we have
requested to SEBI vide our letter dated June 23, 2015 to provide pending list of documents for inspection.
List of associate companies of Motilal Oswal Securities Limited -Click
here to access detailed report
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. The research analysts, strategists, or research associates principally responsible for preparation of MOSt research
receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues
Ashok Leyland
Disclosure of Interest Statement
Analyst ownership of the stock
No
Served as an officer, director or employee -
No
A graph of daily closing prices of securities is available at www.nseindia.com and http://economictimes.indiatimes.com/markets/stocks/stock-quotes
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 MOSt & 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 Kong 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 Securities Limited (MOSL) 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 MOSL 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 MOSL, 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., MOSL 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
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations and is a
subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors, as defined in
the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time.
In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Varun Kumar
Varun.kumar@motilaloswal.com
Contact : (+65) 68189232
Office Address:21 (Suite 31),16 Collyer Quay,Singapore 04931
Ashok Leyland
Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com
Motilal Oswal Securities Ltd
22 April 2017
8