BSE SENSEX
31,298
S&P CNX
9,654
Fortis Healthcare
CMP: INR198
20
June
2017
Update
| Sector:
Healthcare
TP: INR240(+21%)
Buy
Possibility of three-step value unlocking
According to media reports, IHH Healthcare Bhd, Asia’s largest private hospital
operator, may announce acquisition of a controlling stake in Fortis Healthcare
Ltd (FORH) and SRL Diagnostics. In this note, we have evaluated the possibility
of a three-step value unlocking in FORH: 1) IHH/private equity buying a
controlling stake in FORH, 2) fresh equity infusion, which will be used to
buyback RHT and 3) acquisition of a controlling stake in SRL to help provide exit
to the existing private equity players. We have tried and analyzed the impact of
all the three events.
Step-1: IHH/private equity buys controlling stake in FORH
:
According to media
reports, IHH may buy a controlling stake in the company from the promoters,
valuing FORH at INR140b. This would mean a fair value of INR270/ share (>35%
upside from current levels).
Step-2: Fresh equity infusion in FORH to execute RHT buyback; TP will
increase by ~20%:
RHT is listed in Singapore with a market cap of ~INR35b in
INR terms. Given that FORH will pay business trust (BT) cost of >INR4b to RHT
in FY19E, at current market cap, RHT trades at 10.75x FY19E EV/EBITDA,
significantly below hospital asset valuation of 20-22x forward EV/EBITDA. We
believe that the acquisition of RHT will increase EV of FORH by ~INR60b. FORH
owns ~30% stake in RHT, and thus, it will have to buy back the remaining stake
(worth INR25b), for which it may look to raise fresh equity. Even after assuming
dilution through fresh equity (share count increasing from 523m to 642m), our
TP for FORH will increase from ~INR240 currently to INR290.
Step-3: Acquisition of controlling stake in SRL can defer demerger:
According
to media reports, IHH may look to buy controlling stake in SRL. This will help
provide partial/complete exit to the existing private equity. According to FORH,
the demerger process will complete by July-17 end/ Aug-17 beginning. We
believe that the SRL business demerger, coupled with stake acquisition in FHTL
and asset sweating in existing hospitals, will help unlock significant value for
FORH’s shareholders.
Hospital business EBITDAC to grow 3x over FY17-19E:
Given that a large part
of BT cost is fixed (except Chennai, no major greenfield addition expected in
the near term), we expect normalized growth in BT cost to be in mid-single-
digits (much lower than EBITDAC CAGR of ~20%). The impact of one-time
reduction of INR1b in BT cost on annualized basis due to the FHTL transaction
will also come in FY18. Lower base, coupled with strong growth in EBITDAC and
relatively flattish BT cost, would result in a multifold increase in hospital
EBITDA for FORH from INR0.5b in FY16 to INR5.4b in FY19E.
Top pick in healthcare delivery space:
Although RHT buyback could act as a
significant catalyst (will increase the TP by INR50), regardless of this event, we
argue for a multiple re-rating in the stock on the back of a multifold increase in
hospital business EBITDA, SRL demerger, asset light expansion strategy and
FHTL transaction. We have rolled forward our valuation multiple to FY19E from
1HFY19E. We have valued the hospital business based on 20x FY19E EV/EBITDA
and the diagnostics business based on 25x FY19E EV/EBITDA. FORH remains
our top pick in the healthcare delivery space with a TP of INR240.
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 (%)
FORH IN
463.1
231 / 143
-5/-12/4
91.7
1.4
442
47.7
Financials Snapshot (INR b)
Y/E Mar
FY17 FY18E FY19E
Net Sales
45.7
52.0
59.1
EBITDA
3.5
5.8
7.8
PAT
4.8
1.0
2.8
EPS (INR)
10.3
2.1
6.1
Gr. (%)
481.4 -79.6 187.9
BV/Sh (INR)
96.8 110.9 117.0
RoE (%)
11.3
2.0
5.3
RoCE (%)
3.5
3.0
4.8
P/E (x)
19.1
93.8
32.6
P/BV (x)
2.0
1.8
1.7
Shareholding pattern (%)
As On
Mar-17 Dec-16 Mar-16
Promoter
52.3
67.6
71.3
DII
0.4
1.1
5.3
FII
34.5
20.7
12.8
Others
12.8
10.6
10.6
FII Includes depository receipts
Stock Performance (1-year)
Fortis Health.
Sensex - Rebased
230
210
190
170
150
Kumar Saurabh
(Kumar.Saurabh@MotilalOswal.com); +91 22 6129 1519
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.

Fortis Healthcare
Valuations attractive – RHT buyback can create signicant
value
We believe FHTL acquisition, coupled with demerger of SRL business, will help
unlock significant value for FORH shareholders. Operating profit growth of the
hospital business is at an inflection point. Asset sweating, coupled with high
operating leverage, will play a key role in driving a multifold increase in EBITDA.
We expect hospital business EBITDA to grow more than 10x over next three years on
the back of its strong operational performance, acquisition of FHTL and flattish BT
cost. Also, ex-SRL and RHT stake, the hospital business is trading at a significant
discount to peers.
We value the hospital business based on 20x FY19E EV/ EBITDA (in line with peers)
and the diagnostic business based on 25x FY19E EV/ EBITDA (in-line with Dr. Lal).
We maintain our
Buy
rating and an SOTP-based TP of INR240, implying an upside of
~21%.
Exhibit 1: SOTP based target price of INR240 provides ~21% to CMP
SOTP
(INR m)
SRL (56% stake Diagnostic business)
Domestic hospital
Fortis stake in business trust (~30%)
Target EV (INR m)
Net debt/cash
Monetization of non-core assets
Minority interest in FHTL
Implied Equity Value
Diluted Shares Outstanding
Target Price (INR/share)
FY19E
37,696
103,775
10,650
INR/ Share
25 x
20 x
CMP
152,121
-13,000
5,000
-20,000
124,121
523
240
Source: MOSL, Company
Land Parcels in Delhi,
Mohali & minority
interest in
Sri Lanka Hospital
72
198
20
EV/EBITDA x
EV/EBITDA x
CMP
Comments
Key catalysts driving stock performance over medium term are:
Buyback of RHT using proceeds from fresh equity issuance
Faster ramp-up of new hospitals, including FMRI, Bangalore, Ludhiana and
Chennai.
100% acquisition of FHTL will lead to a significant reduction in interest cost and
minority interest.
SRL business, in our view, trades at a significant discount to peers. Demerger of
the business should help unlock value for shareholders.
20 June 2017
2

Fortis Healthcare
Hospitals + Diagnostics = Double dose of growth
Two-pronged growth strategy in hospital business – no major greenfield
expansion required
We believe asset sweating and introduction of high-end medical programs will be
the key growth drivers for FORH’s hospital business in the medium term. Despite
restrained capex, the company should be able to drive growth by improving
occupancy at existing hospitals and bolt-on additions.
FORH has installed capacity of ~4,200 beds, of which ~3,600 (FORH/RHT-owned) are
operationalized. Total potential bed capacity stands at ~10,000. We expect FORH to
add ~800-900 beds over next three years, which is easily achievable without any
M&A or major greenfield expansion in the near term (no greenfield in the pipeline,
except Chennai and Ludhiana).
Hospital business EBITDA to grow 10x over FY16-19E
We expect robust EBITDAC (EBITDA before business trust cost) CAGR of 19% over
FY16-19E (implying addition of INR3.6b to EBITDAC). We estimate that almost one-
fourth of this addition to EBITDAC would be driven by the ramp-up of Fortis
Memorial Research Institute (FMRI; occupancy increasing from 61% to ~70% with
EBITDAC margins greater than 20% from ~16% over next three years). Apart from
this, shift in business mix away from government schemes as well as recovery in
occupancy (from 67% in FY16 to ~74% in FY19E) at Fortis Escorts Heart Institute
(FEHI) will contribute ~15% of EBITDAC growth over next three years.
Given that a large part of business trust (BT) cost is fixed (except Chennai, no major
greenfield addition expected in the near term), we expect normalized growth in BT
cost to be in mid-single-digits (much lower than EBITDAC CAGR of ~20%). We expect
one-time reduction of INR1b in BT cost on annualized basis from FY18E (>40%
reduction in BT cost) due to the FHTL transaction.
Lower base, coupled with strong growth in EBITDAC and relatively flattish BT cost,
would result in a multifold increase in hospital EBITDA for FORH from INR0.5b in
FY16 to INR5.4b in FY19E.
SRL demerger – value unlocking opportunity
SRL is the largest diagnostics chain in India with four reference labs and a pan-India
network of 310 clinical labs, 1,074 collection centers and 7,200 collection points.
SRL is one of the early movers to establish its presence across India (SRL and Dr. Lal
generate 35% and 72%, respectively, of revenues from their respective strongest
zones). FORH’s EBITDA margins in the diagnostics business have almost doubled in
last four years to >20% (as of FY16) due to its better capacity utilization, change in
business mix and improvement in realizations
We expect EBITDA margins for the diagnostics business to improve by another
300bp by FY19E on the back of deeper penetration in existing markets,
rationalization of low-margin centers, growth in samples tested and higher share
from the O&M model.
20 June 2017
3

Fortis Healthcare
Story in charts
Exhibit 2: FORH revenue to exhibit 14% CAGR over FY17-19E
Revenues (INR m)
42,651
45,737
51,989
5,796
3,282
2,224
521
FY12
FY13
FY14
FY15
FY16
FY17
FY18E FY19E
FY12
FY13
FY14
1,309
2,169
3,529
59,087
Exhibit 3: FORH EBITDA to exhibit 49% CAGR over FY17-19E
EBITDA (INR m)
7,830
26,177
30,423
34,919
39,659
FY15
FY16
FY17
FY18E FY19E
Source: MOSL, Company
Source: MOSL, Company
Exhibit 4: Hospital revenues to exhibit 14% CAGR over FY17-
19E
Exhibit 5: Hospital EBITDA margins to improve due to robust
EBITDAC growth and lower BT costs
EBITDAC
BT Costs
5,080
4,570
5,450
EBITDA
6,348
5,137
3,660
3,720
1,730
(130)
143
FY15
510
FY16
FY17
FY18E
FY19E
2,688
2,822
7,960
Hospital Revenues (INR m)
37,120
42,317
48,241
19,120
22,929
27,950
32,070
34,490
4,590
3,110
4,447
3,240
FY12
FY13
FY14
FY15
FY16
FY17
FY18E FY19E
FY14
Source: MOSL, Company
Source: MOSL, Company
Exhibit 6: Diagnostic revenues to exhibit 12% CAGR over
FY16-19E
9,972
Exhibit 7: Diagnostic EBITDA to witness 21% CAGR over
FY17-19E
2,685
2,228
1,820
1,170
804
458
1,470
1,839
5,789
4,340
6,530
7,220
7,640
7,950
8,904
FY12
FY13
FY14
FY15
FY16
FY17
FY18E FY19E
FY12
FY13
FY14
FY15
FY16
FY17E FY18E FY19E
Source: MOSL, Company
Source: MOSL, Company
20 June 2017
4

Fortis Healthcare
Financials and Valuations
Income Statement
Y/E March
Total Income from Operations
Change (%)
Raw Materials
Employees Cost
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest/ associate income
Reported PAT - Continuing Opr.
Adjusted PAT - Continuing Opr.
Change (%)
Margin (%)
FY14
34,919
14.8
8,807
6,952
18,639
34,398
98.5
521
1.5
1,828
-1,307
2,502
1,674
-2,135
-51
-2,186
107
-4.9
-105
-2,188
-2,134
-17.0
-6.1
FY15
39,659
13.6
9,345
7,646
21,358
38,349
96.7
1,309
3.3
2,346
-1,036
1,518
887
-1,667
68
-1,599
45
-2.8
-458
-1,186
-1,256
-41.1
-3.2
FY16
42,651
7.5
9,572
8,260
22,650
40,482
94.9
2,169
5.1
2,295
-125
1,249
926
-448
212
-236
466
-197.4
-443
-259
-890
-29.1
-2.1
FY17
45,737
7.2
9,976
9,089
23,144
42,208
92.3
3,529
7.7
2,222
1,307
2,294
1,660
673
-16
656
724
110.3
-4,861
4,793
4,791
-638.2
10.5
(INR Million)
FY18E
51,989
13.7
11,178
9,098
25,917
46,193
88.9
5,796
11.1
3,000
2,796
2,000
300
1,096
0
1,096
362
33.0
-243
978
978
-79.6
1.9
FY19E
59,087
13.7
12,408
10,340
28,508
51,257
86.7
7,830
13.3
3,200
4,630
1,000
300
3,930
0
3,930
1,297
33.0
-182
2,815
2,815
187.9
4.8
Balance Sheet
Y/E March
Equity Share Capital
Eq. Share Warrants & App. Money
Preference Capital/ FCCB
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and cash equivalents
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
FY14
4,628
0
6,700
38,196
49,524
1,393
18,803
350
70,070
27,751
10,056
17,695
23,773
1,471
10,314
25,255
620
4,407
10,446
9,782
8,438
5,061
2,477
899
16,817
70,070
FY15
4,628
0
0
35,848
40,476
1,529
17,843
-71
59,777
29,230
11,726
17,504
24,673
2,282
10,561
20,826
640
4,094
5,970
10,122
16,069
5,649
9,316
1,103
4,757
59,777
FY16
4,631
0
0
35,342
39,973
1,431
14,960
-506
55,858
26,997
12,569
14,428
23,328
2,010
10,784
21,264
619
4,438
7,369
8,838
15,957
6,071
8,872
1,013
5,307
55,857
FY17
4,631
0
0
40,184
44,815
1,431
26,460
-506
72,200
29,855
14,791
15,064
23,328
1,652
22,284
25,114
646
5,639
9,353
9,478
15,227
4,626
9,514
1,087
9,888
72,216
(INR Million)
FY18E
5,231
0
0
46,152
51,383
1,431
16,460
-506
68,768
27,676
17,791
9,885
23,328
1,830
22,284
27,935
706
7,122
9,334
10,773
16,480
4,429
10,815
1,235
11,455
68,784
FY19E
5,231
0
0
48,937
54,168
1,431
16,460
-506
71,553
30,641
20,991
9,650
23,328
1,866
22,284
33,051
784
8,094
11,929
12,244
18,610
4,915
12,291
1,404
14,441
71,569
20 June 2017
5

Fortis Healthcare
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 Cover Ratio
Net Debt/Equity
FY14
-4.6
-0.7
106.9
0.0
-0.2
FY15
-2.7
2.4
87.4
0.0
-0.9
-73.0
84.2
2.3
2.6
79.1
0.0
1.3
-2.8
-0.2
-2.6
1.4
0.7
6
38
52
1.3
-0.7
0.3
FY15
-1,374
2,628
1,048
-1,193
-280
829
-587
242
383
625
4,097
-6,162
-1,682
1
-1,539
-1,400
0
-98
-3,035
-4,475
10,446
5,970
FY16
-1.9
3.0
86.3
0.0
-2.4
-103.0
65.3
2.3
2.3
45.8
0.0
4.3
-2.2
1.1
-0.2
1.6
0.8
5
38
52
1.3
-0.1
0.2
FY16
552
2,305
587
-1,544
126
2,026
-352
1,674
325
1,999
-1,393
5,229
4,162
32
-3,255
-1,248
0
34
-4,438
1,399
5,970
7,369
FY17
10.3
15.1
96.8
-0.1
-1.0
19.1
13.1
2.0
2.4
30.8
0.0
-4.9
11.3
3.5
2.6
1.5
0.6
5
45
37
1.6
0.6
0.4
FY17
673
2,222
634
-724
-2,597
208
0
208
-2,500
-2,292
-11,500
1,660
-12,340
0
11,500
-2,294
50
4,861
14,116
1,984
7,369
9,353
FY18E
2.1
8.6
110.9
0.0
1.1
93.8
23.1
1.8
1.9
17.0
0.0
12.6
2.0
3.0
5.0
1.9
0.8
5
50
31
1.7
1.4
0.1
FY18E
1,096
3,000
1,700
-362
-1,586
3,848
0
3,848
2,000
5,848
0
300
2,300
5,600
-10,000
-2,000
-10
243
-6,167
-19
9,353
9,334
FY19E
6.1
13.0
117.0
0.1
1.1
32.6
15.2
1.7
1.6
12.3
0.0
6.8
5.3
4.8
8.8
1.9
0.8
5
50
30
1.8
4.6
0.1
0.0
-1.3
-4.6
0.4
-2.0
1.3
0.5
6
46
53
3.0
-0.5
0.2
FY14
1,491
2,479
1,839
-1,049
-203
4,556
235
4,791
-5,413
-622
-5,858
42,162
30,891
10,196
-37,737
-3,777
0
-854
-32,172
3,510
6,936
10,446
Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
(INR Million)
FY19E
3,930
3,200
700
-1,297
-390
6,143
0
6,143
-3,000
3,143
0
300
-2,700
0
0
-1,000
-30
182
-848
2,596
9,334
11,929
20 June 2017
6

Fortis Healthcare
NOTES
20 June 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
Fortis Healthcare
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
FORTIS HEALTHCARE
20 June 2017
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
8