28 July 2017
3QFY17 Results Update | Sector: Healthcare
Biocon
Sell
BSE SENSEX
32,310
S&P CNX
10,015
CMP: INR390
TP: INR330(-15%)
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Malaysian plant commercialization impacts profits
Biocon (BIOS) reported weak 1QFY18 results. Revenue declined 5% YoY to
INR9.3b (est. of INR10b), mainly due to weak performance in the Small
molecules (-17% YoY) and Branded formulations (-13% YoY) segments. With
commercialization of the Malaysian plant, operational expense and fixed cost
(depreciation and interest cost) increased ~USD12m, leading to a 27% YoY
decline in EBITDA to INR1.9b (est. of INR2.3b). Margin for the quarter came in
at 20.6% (-530bp YoY), with employee expenses up ~400bp YoY (as % of sales).
Branded business impacted by GST; Syngene showing signs of recovery:
Small
molecules sales declined 17% YoY due to pricing pressure. Branded
formulations sales fell 13% YoY due to destocking in trade channels ahead of
GST implementation. BIOS, however, expects growth to bounce back in 2Q. The
company has guided for mid-to-high-teens growth in India business in the
coming quarters. Biologics business grew 15% YoY in 1Q. Syngene business
(~29% of revenue) grew 6% YoY.
Concall takeaways:
1) Maintained USD200m of revenue guidance from
Biologics in FY19E; substantial portion will come from EMs. 2) Tender business
from the Malaysian plant is worth USD20m annualized (USD5m in 1Q). 3) Peg
Filgrastim TAD is 9
th
Oct. 4) Malaysian facility was inspected by EU regulator in
Mar/Apr-17. Observations were issued, and Biocon has replied to it. 5) Syngene
signed a multi-year agreement with Japanese manufacturer to produce a novel
drug.
Biosimilars pipeline progressing well:
The recent run-up in the stock price is
primarily led by positive developments in the Biosimilars portfolio. Although
the progress is impressive, there are still uncertainties that cap the upside
potential. In the near term, commissioning of the Malaysia plant would exert
pressure on profits. We thus cut our FY18E EPS by 6.7%. However, we have
increased our TP multiple on the back of enhanced visibility of Biologics launch
in the EU and US markets. Maintain
Sell
with a TP of INR330 @ 23x FY19E EPS
(v/s INR300 @ 20x FY19E EPS).
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/(USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, (INR m)
Free float (%)
BIOS IN
600
234.1 / 3.6
424 / 256
16/-1/27
1082
39.3
Financials & Valuations (INR b)
2017 2018E 2019E
Y/E Mar
Net Sales
40.8
50.6
63.5
EBITDA
11.4
12.2
16.3
PAT
6.0
5.8
8.5
EPS (INR)
10.2
9.7
14.2
Gr. (%)
31.8
-4.8
45.9
BV/Sh (INR)
80.6
87.5
97.5
RoE (%)
12.3
11.1
14.5
RoCE (%)
9.4
8.8
14.9
P/E (x)
P/BV (x)
38.2
40.1
27.5
P/BV (x)
4.8
4.5
4.0
EV/EBITDA (x)
20.5
19.3
14.2
Div. Yield (%)
0.7
0.6
0.9
Estimate change
TP change
Rating change
Kumar Saurabh - Research analyst
(Kumar.Saurabh@MotilalOswal.com); +91 22 6129 1519
Ankeet Pandya - Research Analyst
(Ankeet.Pandya@motilaloswal.com); +91 022 6129 1552
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.

Biocon
Muted performance due to de-growth in Syngene
Biocon posted muted growth during the quarter on back of weak performance in
Small molecules and Branded formulation segment, declining 14%YoY and 22%YoY
respectively. Fire incident at Syngene facility continued to impact its performance,
which posted 6%YoY growth as against 23% growth in 1QFY17. Biologics segment
posted robust growth of 15%YoY to INR1.8b on back of increased market share of
Insulin in Emerging Market.
Exhibit 1: Quarterly performance (sales mix) (IND AS format)
(INR m)
Small Molecules
% of sales
Biologics
% of sales
Branded Formulations
% of sales
Licensing Income
% of sales
Research-Syngene
% of sales
Total Revenues
1QFY18
3,629
38.9
1,839
19.7
1,227
13.1
77
0.8
2,911
31.2
9,337
1QFY17
4,354
43.9
1,606
16.2
1,408
14.2
172
1.7
2,754
27.7
9,920
6.0
-6.0
-55.0
-13.0
15.0
% YoY
-17.0
4QFY17
3,870
41.8
1,190
12.9
1,310
14.2
160
1.7
2,720
29.4
9,250
Source: Company, MOSL
Higher R&D coupled with commissioning of Malaysia plant to limit margins
expansion
Gross R&D spend for the quarter was INR960 million of which INR580 million was in
P&L (~6% of sales excluding Syngene). Going ahead R&D spend will be around 11%
of revenues on back of novel development programs and also some of other
biosimilar and insulin which will progress further into the clinic.
Exhibit 2: R&D cost as % of sales to increase further
R&D cost (%)
46
48
46
46
47
42
41
45
Raw material cost (%)
47
43
43
44
42
40
41
44
5
3
4
4
5
6
7
6
7
8
11
5
7
8
7
6
Source: Company, MOSL
28 July 2017
2

Biocon
Exhibit 3: EBITDA growth quarterly trend (INR b)
61.8
18.6
14.4
EBITDA (INR b)
EBITDA growth (%)
33.0
4.2
1.9
2.6
2.3
2.6
41.5 45.1
(1.7) (27.0)
1.8
1.9
45.0
(2.4) (9.7)
1.6
1.5
4.6
1.8
18.2
(3.5)
2.0
1.6
18.6
1.7
1.7
1.7
1.7
1.8
Source: Company, MOSL
Exhibit 4: Higher R&D cost being capitalized
Gross R&D (INR m)
5.3
2.9
4.0
4.3
4.7
6.2
6.7
Rev R&D (INR m)
6.2
7.3
8.2
7.2
5.2
% R&D capitalized
6.9
290 310 350
200
450 230 520 380 560 660 1000 930 905 912 913 920 1130 1000 975 956
390
8.3 7.0 6.2
850
679 680
652 582
650
560 500 574
520
470
Source: Company, MOSL
Exhibit 5: Quarterly earnings trend
PAT (INR m)
14 15
(55)
16 20
13
10 (0)
(5)
(13)
Growth (%)
35
(43)
52
66
93
Exhibit 6: Sales growth v/s PAT growth
Sales gr. (%)
PAT gr. (%)
35 52
(51)
24
15 15 3
10
(55)
2
(0)
9 15 20 5
16 13
(13)
(5)
9
13
14
22 20 24
(43)
(2)
(51)
66
93
(6)
14 10
Source: Company, MOSL
Source: Company, MOSL
Other key highlights
Malaysia facility:
Tender business from the Malaysian plant is worth USD20m
annualized (USD5m in 1Q). The facility was inspected by the EU regulator in
Mar-17/Apr-17. Observations were issued and Biocon has replied to it.
Branded Formulations:
The segment declined 13% YoY to INR1.2b on the back
of low licensing income and channel de-stocking due to GST implementation.
Biologics:
The company maintained its FY19E guidance of USD200m of revenue
(v/s USD75m in FY17). Majority of revenue contribution will come from
emerging markets, while revenue related to initial supply to developed markets
can come in FY19.
3
28 July 2017

Biocon
R&D guidance:
Biocon will be spending 11% of revenue on R&D. Out of this,
~10% will be expensed through P&L, and the rest will be capitalized.
Partnered products:
Biocon has target action date of Sep/ Oct-17 for
Trastuzumab (Herceptin) and Pegfilgrastim (Neulasta) from the US FDA. The
company is on track to file other two key molecules – Adalimumab (Humira) and
Glargine (Lantus) – in FY18 in developed markets.
Operating metrics
Exhibit 7: Key operating metrics
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18
Cost of sales (%)
Raw material
Staff cost
R&D cost
Other expenses
Tax Rate
Margins (%)
Gross Margins
EBITDA Margins
EBIT Margins
PAT margins
46.5
16.2
4.3
9.8
22.4
53.5
23.3
16.1
14.3
46.9
16.7
4.7
9.7
16.9
53.1
22.0
14.8
13.6
41.7
17.9
6.2
14.3
10.3
58.3
19.9
12.5
11.9
40.7
16.4
6.7
14.7
12.8
59.3
21.4
14.4
24.3
45.0
16.7
6.1
7.8
22.8
55.0
24.4
17.1
15.3
46.6
16.5
7.3
9.4
145.0
53.4
20.2
12.5
(1.4)
42.7
17.6
8.2
9.8
16.6
57.3
21.7
14.2
12.4
43.0
16.3
10.5
10.6
14.6
57.0
19.6
12.8
35.0
44.2
16.6
5.2
7.6
23.8
55.8
26.5
19.9
16.8
41.7
17.7
6.9
9.8
20.8
58.3
23.9
16.7
15.6
39.6
17.4
8.3
9.4
22.5
60.4
25.4
18.5
16.6
41.4
19.2
7.0
12.6
6.5
58.6
19.7
11.8
15.5
43.9
20.7
6.2
8.6
28.7
56.1
20.6
10.0
8.7
Source: MOSL, Company
28 July 2017
4

Biocon
Story in charts
Exhibit 1: Revenue growth to pick up in FY17-18E
Sales (INR b)
20
YoY growth (%)
23
5
7
21
28
Exhibit 2: Biopharma sales trend (In INR m)
14
14
28
-33
20
24
29
31
35
41
51
64
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E
Source: Company, MOSL
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E
Source: Company, MOSL
Exhibit 3: EPS to grow at 18% CAGR from FY17-19E
EPS
10.2
6.1
5.6
5.5
6.9
6.7
7.7
9.7
14.2
Exhibit 4: Return ratios trending lower with high capex
16.7
18.0
RoCE (%)
14.9 15.8
13.7
14.2
16.4
12.5
12.1
12.3
11.5
10.7 11.1
RoE (%)
16.1
12.3
11.1
14.9
14.5
9.4
8.8
FY11
FY12
FY13
FY14
FY15
FY16
FY17 FY18E FY19E
Source: Company, MOSL
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E
Source: Company, MOSL
Exhibit 5: R&D expenses (annual trend)
R&D Expenses (INR m)
As a % of sales
Exhibit 6: EBITDA margin trend
EBITDA (INR m)
EBITDA Margin (%)
7.6%
8.0%
6.8%
4.6%
6.5%
6.5%
27.9
7.2%
7.2%
21.2
23.4
20.0
23.2
21.7
22.8
24.1
25.6
4.3%
1,180 1,566 1,640 1,312 2,000 2,750 2,662 3,787 4,731
FY11
FY12
FY13
FY14
FY15
FY16
FY17 FY18E FY19E
6
FY11
5
FY12
5
FY13
7
FY14
7
FY15
8
FY16
11
12
16
FY17 FY18E FY19E
Source: Company, MOSL
Source: Company, MOSL
28 July 2017
5

Biocon
Financials and Valuations
Income Statement (Consolidated)
Y/E March
Net Sales
Contract Research
Net Income
Change (%)
Total Expenditure
EBITDA
Change (%)
Margin (%)
Depreciation
EBIT
Int. & Finance Charges
Other Income - Rec.
PBT
Tax
Tax Rate (%)
Minority Interest
Adjusted PAT
PAT
Change (%)
Margin (%)
2013
18,704
5,572
24,276
18.5
19,423
4,853
1.1
20.0
1,793
3,060
81
3,123
6,101
975
16.0
38
3,271
5,088
50.3
21.0
2014
21,390
7,137
28,527
17.5
21,902
6,625
36.5
23.2
2,036
4,589
17
805
5,377
1,069
19.9
170
4,137
4,137
-18.7
14.5
2015
22,367
8,225
30,592
7.2
23,940
6,652
0.4
21.7
2,210
4,442
89
1,888
6,241
957
15.3
310
4,023
4,974
20.2
16.3
2016
23,908
10,599
34,507
12.8
26,654
7,853
18.1
22.8
2,423
5,430
102
6,946
12,274
2,569
20.9
744
4,646
8,961
80.2
26.0
2017
29,407
11,380
40,787
18.2
29,421
11,366
44.7
27.9
2,772
8,594
260
0
8,334
1,616
19.4
760
5,958
5,958
-33.5
14.6
(INR Million)
2018E
35,628
14,975
50,603
24.1
38,426
12,177
7.1
24.1
5,072
7,105
236
2,000
8,870
2,129
24.0
912
5,829
5,829
-2.2
11.5
2019E
45,572
17,934
63,506
25.5
47,255
16,251
33.5
25.6
5,408
10,843
241
2,200
12,802
3,201
25.0
1094
8,507
8,507
45.9
13.4
Consolidated Balance Sheet
Y/E March
Equity Share Capital
Other Reserves
Net Worth
Loans
Minority Interest
Deferred liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Intangibles
Curr. Assets
Inventory
Account Receivables
Cash and Bank Balance
Loans & Advances
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Appl. of Funds
E: MOSL Estimates
2013
1,000
25,937
26,946
2,488
653
4689
34,776
24,961
9,672
15,289
2,054
5,866
1,290
19,662
3,984
5,097
6,729
3,852
9,385
6,920
2,465
10,277
34,776
0
2014
1,000
29,258
30,267
8,497
823
6558
46,145
27,218
11,711
15,507
10,831
7,649
1,442
22,077
3,766
5,998
8,044
4,269
11,361
9,595
1,766
10,716
46,145
0
2015
1,000
31,697
32,706
10,306
1,722
5934
50,667
29,750
13,943
15,807
14,939
2,303
2,320
28,384
4,527
7,705
9,375
6,777
13,087
11,355
1,732
15,297
50,667
0
2016
1,000
39,329
40,338
24,673
2,658
3489
71,158
33,113
16,302
16,811
20,597
9,015
2,470
34,973
5,424
7,145
15,386
7,018
12,708
12,334
374
22,265
71,158
0
2017
3,000
45,368
48,377
22,054
3,761
1964
76,156
53,269
17,740
35,529
5,327
12,538
3,787
34,786
6,353
8,832
10,443
9,158
15,811
15,343
468
18,975
76,156
0
(INR Million)
2018E
3,000
49,492
52,501
23,054
4,673
624
80,852
61,269
22,812
38,457
5,327
8,224
4,166
42,978
7,625
11,091
13,864
10,398
18,300
15,250
3,050
24,678
80,852
0
2019E
3,000
55,511
58,520
24,054
5,767
-600
87,741
66,769
28,220
38,549
5,327
9,182
4,582
53,067
9,569
13,919
17,399
12,179
22,967
19,139
3,828
30,100
87,741
0
28 July 2017
6

Biocon
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 (%)
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Debtor (Days)
Inventory (Days)
Working Capital (Days)
Leverage Ratio (x)
Current ratio
Debt/Equity
2013
5.5
11.5
44.9
2.5
34.5
71.5
34.0
8.7
9.2
46.1
0.6
12.1
15.8
13.7
1.7
77
60
53
2.1
0.1
2014
6.9
10.3
50.4
1.7
28.3
56.6
37.9
7.7
8.0
34.2
0.4
13.7
10.7
18.5
1.9
77
48
34
1.9
0.3
2015
6.7
12.0
54.5
1.7
23.5
58.2
32.6
7.2
7.6
35.0
0.4
12.3
11.1
17.2
2.0
92
54
71
2.2
0.3
2016
7.7
19.0
67.2
1.7
13.4
50.4
20.6
5.8
6.8
29.8
0.4
11.5
16.1
17.1
2.1
76
57
73
2.8
0.6
2017
10.2
14.6
80.6
2.6
30.1
38.2
26.8
4.8
5.7
20.5
0.7
12.3
9.4
18.7
1.6
79
57
76
2.2
0.5
2018E
9.7
18.2
87.5
2.4
29.3
40.1
21.5
4.5
4.6
19.3
0.6
11.1
8.8
10.7
1.4
80
55
78
2.3
0.4
2019E
14.2
23.2
97.5
3.5
29.3
27.5
16.8
4.0
3.6
14.2
0.9
14.5
14.9
14.9
1.6
80
55
73
2.3
0.4
Consolidated Cash Flow Statement
Y/E March
Oper. Profit/(Loss) before Tax
Interest/Dividends Recd.
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
(Incr)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from investments
Change in Net Worth
(Inc)/Dec in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
E: MOSL Estimates
2013
4,853
3,123
-2,040
-1,910
4,025
-3,535
490
-358
-3,893
2,706
494
-81
-1,755
1,364
1,496
5,233
6,729
2014
6,625
805
800
876
9,106
-11,031
-1,925
-1,935
-12,966
354
6,009
-17
-1,170
5,175
1,315
6,729
8,044
2015
6,652
937
-1,581
-3,251
2,758
-6,618
-3,861
4,468
-2,151
-414
2,397
-89
-1,170
724
1,331
8,044
9,375
2016
7,853
2,630
-5,014
-956
4,513
-9,085
-4,572
-6,862
-15,946
4,190
14,559
-102
-1,204
17,444
6,011
9,375
15,386
2017
11,366
0
-3,141
-1,653
6,572
-6,220
352
-4,840
-11,060
3,871
-2,276
-260
-1,790
-455
-4,943
15,386
10,443
(INR Million)
2018E
12,177
2,000
-3,469
-2,282
8,426
-8,000
426
3,935
-4,065
0
1,000
-236
-1,705
-941
3,421
10,443
13,864
2019E
16,251
2,200
-4,425
-1,887
12,139
-5,500
6,639
-1,375
-6,875
0
1,000
-241
-2,488
-1,729
3,535
13,864
17,399
28 July 2017
7

Biocon
Corporate profile
Company description
Biocon is an integrated biotechnology company
encompassing all the three critical stages of drug
development - drug discovery, development and
manufacturing, and commercialization of bio-
pharmaceuticals. With over 25 years of expertise in
fermentation technology, the company has built a
strong presence in lucrative high-growth segments
like statins, immuno-suppressants and anti-diabetes.
Source: MOSL/Bloomberg
Exhibit 1: Sensex rebased
Exhibit 2: Shareholding pattern (%)
Promoter
DII
FII
Others
Jun-17
60.7
3.7
16.9
18.8
Mar-17
60.7
3.7
19.5
16.1
Jun-16
60.7
5.1
17.1
17.2
Exhibit 3: Top holders
Holder Name
OPPENHEIMER
DEVELOPING
MARKETS
FUND
FRANKLIN TEMPLETON INVESTMENT FUNDS
NATIONAL WESTMINSTER BANK PLC AS
TRUSTEE OF THE JUPITER INDIA FUND
Arun Suresh Chandavarkar
% Holding
2.6
1.7
1.4
1.1
Note: FII Includes depository receipts
Source: Capitaline
Source: Capitaline
Exhibit 4: Top management
Name
Kiran Mazumdar Shaw
John Shaw
Arun Suresh Chandavarkar
Kiran Kumar
Designation
Chairperson & Managing Direct
Vice Chairman
Joint Managing Director & CEO
Company Secretary
Exhibit 5: Directors
Name
Kiran Mazumdar Shaw
John Shaw
Arun Suresh Chandavarkar
Daniel M Bradbury*
Jeremy Levin*
Name
Mary Harney*
Ravi Mazumdar
Russell Walls*
Vijay Kumar Kuchroo*
M Damodaran*
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Rao & Murty
S R Batliboi & Associates LLP
Type
Cost Auditor
Statutory
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
MOSL
forecast
9.7
14.2
Consensus
forecast
9.9
13.0
Variation
(%)
-1.8
8.9
Source: Bloomberg
FY18
FY19
Source: Capitaline
28 July 2017
8

Biocon
NOTES
28 July 2017
9

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 Securities Ltd. (MOSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, 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. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed
public company, the details in respect of which are available on
www.motilaloswal.com.
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), Metropolitan Stock Exchange Of India Ltd. (MSE) for its stock broking activities & is Depository participant with Central Depository Services Limited
(CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are
available on the website at
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Pending Regulatory Enquiries against Motilal Oswal Securities Limited by SEBI:
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hearing. The matter is currently pending.
MOSL, it’s associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have beneficial ownership of 1% or more securities in
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a)
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MOSL 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. To enhance transparency, MOSL 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. MOSL and / or its affiliates do and seek to do business including investment banking with
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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 MOSL. The report is based on the facts, figures and information that are considered
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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
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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.
Biocon
Disclosure of Interest Statement
Analyst ownership of the stock
Biocon
No
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 MOSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOSL research activity and therefore it can have an independent view with regards to
subject company for which Research Team have expressed their views.
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regulation or which would subject MOSL & 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
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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.
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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:
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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
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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
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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. MOSL, 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 MOSL. 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
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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
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employees responsible for any such misuse and further agrees to hold MOSL 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.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring
Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id:
na@motilaloswal.com,
Contact No.:022-30801085.
Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;
MSE(F&O): INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset
Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth
management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities
Products. * Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
28 July 2017
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