9 August 2017
1QFY18 Results Update | Sector: Metals
NMDC
Buy
BSE SENSEX
31,798
S&P CNX
9,908
CMP: INR126
TP: INR180(+43%)
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Strong operating performance; pricing power improving
Valuations are compelling; Reiterating Buy
1QFY18 adj. EBITDA grew 98% YoY (+13% QoQ) to INR16.2b, exceeding estimate
by 7%, due to higher regional and mix premiums. EBITDA is adjusted for (a) rail
line doubling payment of INR411m and (b) expected credit loss of INR815m,
which are non-recurring. Adj. PAT grew 72% YoY (+23% QoQ) to INR11.4b.
Sales increased 18% YoY to 9.2mt, while production grew 12% YoY to 8.5mt.
Share in exports increased 110bp QoQ to 8%.
Domestic sales realization increased INR67/t QoQ to INR2,938/t, surprising
positively (est. of INR2,726), due to higher share of Karnataka volumes at 37%
(+348bp QoQ) and higher product and regional premiums. Exports NSR
increased 32% QoQ to USD76/t (est. of USD60).
EBITDA per ton rose INR302 QoQ to INR1,765/t on higher realization and
normalization of employee cost.
Pricing power improving; valuations compelling; Reiterate Buy
NMDC’s iron ore has now become very competitive after a price cut in July.
Preliminary data suggest volumes growth has picked up in July. Improving iron
ore prices in seaborne trade have bettered pricing power. NMDC can supply
20% more volumes without additional capex. We expect 6% volume CAGR over
FY17-20E.
At CMP, adjusting for CWIP, the valuations at 3.5x FY19E EV/EBITDA are
compelling. NMDC has appointed bankers for the sale of its steel plant. We
thus believe that CWIP deserves at least book value. We value the stock at
INR180/share (59% upside), based on 6.5x EV/EBITDA FY19E and book value for
CWIP. Reiterate
Buy.
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
NMDC IN
3,164
399.4 / 6.3
153 / 99
8/-27/12
473
25.1
Financials & Valuations (INR b)
2017 2018E 2019E
Y/E Mar
88.3 104.4 104.3
Net Sales
44.9
57.3
57.0
EBITDA
31.5
39.3
38.4
PAT
10.0
12.4
12.1
EPS (INR)
11.7
24.9
-2.4
Gr. (%)
71.2
76.4
81.3
BV/Sh (INR)
12.8
15.2
15.6
RoE (%)
12.2
14.7
15.2
RoCE (%)
12.8
10.3
10.5
P/E (x)
1.8
1.7
1.6
P/BV (x)
Estimate change
TP change
Rating change
Y/E March
Quarterly Performance (Consolidated)
Production (m tons)
Sales (m tons)
Avg Dom. NSR (INR/t)
Net Sales
EBITDA
Change (QoQ %)
EBITDA per ton (USD)
EBITDA per ton (INR/t)
Interest
Depreciation
Other Income
PBT (before EO Item)
Extra-ordinary item
PBT (after EO Item)
Total Tax
% Tax
Reported PAT
Adjusted PAT
1Q
7.6
7.8
2,160
17,207
8,164
-18.7
16
1,050
81
560
3,452
10,975
0
10,975
3,862
35.2
7,113
6,619
FY17
2Q
3Q
6.3
9.7
8.0
10.1
2,093
2,403
17,392 24,979
8,258 14,226
1.2
72.3
15
21
1,030
1,415
15
53
544
551
2,735
1,559
10,434 15,180
0 -5,972
10,434
9,208
2,727
3,257
26.1
35.4
7,708
5,952
6,293
9,156
4Q
10.4
9.8
2,871
28,717
14,295
0.5
22
1,463
59
307
1,343
15,273
-2,961
12,312
7,193
58.4
5,119
9,211
1Q
8.5
9.2
2,938
28,415
16,206
98.5
27
1,765
82
467
1,286
16,944
-1,258
15,686
5,994
38.2
9,692
11,364
FY18
2QE
3QE
8.4
10.6
8.4
10.6
2,486
2,486
22,004 27,353
10,872 16,475
-32.9
51.5
20
24
1,292
1,560
0
0
601
616
812
786
11,083 16,644
0
0
11,083 16,644
3,547
5,326
32.0
32.0
7,537 11,318
7,433 11,163
4QE
10.3
10.3
2,486
26,643
13,701
-16.8
20
1,335
0
631
829
13,898
0
13,898
4,447
32.0
9,451
9,322
FY17
FY18E
35.6
38.4
35.6
38.4
2,410
2,599
88,294 104,415
44,944 57,254
28.4
27.4
19
23
1,262
1,490
208
1,962
2,315
9,088
3,712
51,862 58,651
-8,933
42,929 58,651
17,038 19,314
39.7
32.9
25,891 39,337
31,279 39,337
FY18
1Q
8.5
9.2
2,726
25,962
15,172
85.8
26
1,647
0
586
828
15,414
0
15,414
4,933
32.0
10,482
10,482
vs Est
(%)
0
0
8
9
7
7
7
-20
55
10
2
22
19
-8
8
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.
Sanjay Jain – Research Analyst
(SanjayJain@MotilalOswal.com); +91 22 6129 1523
Dhruv Muchhal – Research Analyst
(Dhruv.Muchhal@MotilalOswal.com); +91 22 6129 1549

NMDC
Exhibit 1: Operating metrics
1Q
7.94
8.59
0.67
7.92
4,047
4,467
2,993
2,907
825
FY15
2Q
3Q
6.45
8.11
7.27
6.97
0.68
6.59
4,272
4,600
3,160
2,878
1,023
0.37
6.60
4,229
4,333
3,127
2,937
631
4Q
7.94
7.69
0.75
6.94
3,678
3,733
2,760
1,953
1,220
1Q
5.98
6.66
0.00
6.66
2,786
3,050
1,960
1,785
754
FY16
2Q
3Q
6.45
7.36
6.45
7.22
0.00
6.45
2,409
2,917
1,660
1,557
485
0.38
6.84
2,102
2,233
1,527
978
787
4Q
8.78
8.51
0.75
7.77
1,797
1,850
1,610
706
913
FY17
1Q
2Q
7.63
6.31
7.78
8.01
0.75
7.03
2,212
1,967
1,660
1,050
754
0.53
7.49
2,170
1,700
1,460
1,030
926
3Q
9.71
10.06
0.78
9.27
2,484
2,100
1,793
1,415
685
4Q
10.38
9.77
0.68
9.10
2,938
2,325
2,085
1,463
923
FY18
1Q
8.50
9.18
0.74
8.45
3,094
2,425
2,185
1,765
793
Production - m tons
Sales volume - m tons
By markets
Exports
Domestic
Blended realization - INR/t
Published prices - INR/t
Lumps
Fines
EBITDA/t
Operating cost (ex-roy) - INR/t
Source: MOSL, Company
Exhibit 2: Iron ore fines: landed cost to Indian steel mills (NMDC v/s. Imports)
(a) Landed cost from NMDC
(b) Landed cost of imports
NMDC premium/(discount) to imported
(a) calculations for landed cost from NMDC
Ex-Mine Price
add: royalty@15%
add: transportation/port handling
Landed cost at plant
Landed cost at plant
(b) calculations for landed cost of imports
Iron ore fines cfr
less: moisture (8%)
add: import duty (2.5%)
Landed cost at plant
Source: MOSL;
Unit
USD/wmt
USD/wmt
USD/wmt
INR/wmt
INR/wmt
INR/wmt
INR/wmt
USD/wmt
USD/dmt
USD/wmt
USD/wmt
USD/wmt
Dolvi
70
75
-5
2,276
444
1,750
4,470
70
74
6
7
75
Essar
57
75
-17
2,276
444
950
3,670
57
74
6
7
75
RINL
59
75
-16
2,276
444
1,050
3,770
59
74
6
7
75
Note: USD/INR exchange rate = 64 IODEX74USD/T, CFR China basis
Exhibit 3: Target price derivation
Y/E March
EBITDA per ton (INR)
Volumes (m tons)
EBITDA
Target EV/EBITDA(x)
Target EV
Less: Net Debt
Add: CWIP
Less: discount to CWIP
Equity Value
Target price (INR/share)
2016
1,214
28.8
34,998
2017
1,262
35.6
44,944
6.5
292,133
-52,893
118,314
463,339
146
2018E
1,488
38.4
57,224
6.5
371,953
-33,385
152,208
557,545
176
2019E
1,423
40.1
57,028
6.5
370,685
-35,710
164,208
570,603
180
2020E
1,426
42.1
60,016
6.5
390,107
-39,444
176,208
605,758
191
-132,666
97,229
Source: MOSL, Company
9 August 2017
2

NMDC
Financials and Valuations
Y/E Mar
Net Sales
Change (%)
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
Other Income
Extraordinary items
PBT
Tax
Tax Rate (%)
Min. Int. & Assoc. Share
Reported PAT
Adjusted PAT
Change (%)
Income Statement
2013
107,043
-4.9
77,838
72.7
1,385
76,452
0
22,389
-4,058
94,783
31,228
32.9
0
63,556
66,277
-9.2
2013
3,965
271,145
275,110
0
1,045
276,155
26,025
13,379
12,647
32,361
2,497
261,439
6,375
10,822
210,258
33,985
32,788
11,094
21,694
228,650
276,155
2014
120,582
12.6
81,604
67.7
1,504
80,100
0
20,945
455
101,500
33,391
32.9
0
68,110
67,804
2.3
2014
3,965
295,918
299,883
0
1,073
300,956
28,506
14,883
13,623
52,769
2,504
245,874
6,812
14,484
186,572
38,005
13,814
11,092
2,722
232,060
300,956
2015
123,564
2.5
81,369
65.9
1,622
79,747
0
23,200
0
102,946
33,460
32.5
0
69,487
69,487
2.5
2015
3,965
319,353
323,317
0
984
324,301
29,446
16,109
13,337
77,100
5,619
248,642
6,919
17,523
184,431
39,768
20,397
2,263
18,134
228,245
324,301
2016
64,556
-47.8
34,998
54.2
2,078
32,920
0
17,744
-1,848
48,816
14,769
30.3
0
34,047
35,335
-49.1
2016
3,965
297,146
301,110
14,970
1,222
317,302
37,304
18,234
19,070
97,229
6,954
210,203
6,370
18,961
147,636
37,237
16,154
3,244
12,909
194,050
317,302
2017
88,294
36.8
44,944
50.9
1,962
42,982
0
9,088
-8,933
43,137
17,038
39.5
0
26,099
31,504
-10.8
2017
3,164
222,026
225,189
0
6,112
231,301
39,724
20,196
19,528
118,314
7,270
111,909
5,400
10,435
52,893
43,181
25,719
1,988
23,731
86,190
231,301
2018E
104,415
18.3
57,254
54.8
2,315
54,939
0
3,712
0
58,651
19,314
32.9
0
39,337
39,337
24.9
2018E
3,164
238,582
241,746
0
6,112
247,858
43,724
22,511
21,213
152,208
7,270
96,620
5,721
14,303
33,415
43,181
29,453
5,721
23,731
67,167
247,858
2019E
104,264
-0.1
57,028
54.7
2,687
54,342
(INR Million)
2020E
109,427
5.0
60,016
54.8
2,966
57,051
0
2,127
0
56,468
18,070
32.0
0
38,399
38,399
-2.4
2019E
3,164
254,201
257,364
0
6,112
263,476
47,724
25,197
22,527
164,208
7,270
98,917
5,713
14,283
35,740
43,181
29,445
5,713
23,731
69,473
263,476
0
2,148
0
59,199
18,944
32.0
0
40,255
40,255
4.8
2020E
3,164
271,676
274,840
0
6,112
280,952
51,724
28,163
23,561
176,208
7,270
103,641
5,996
14,990
39,474
43,181
29,727
5,996
23,731
73,913
280,952
Balance Sheet
Y/E Mar
Share Capital
Reserves
Net Worth
Debt
Deferred Tax
Total Capital Employed
Gross Fixed Assets
Less: Acc Depreciation
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Debtors
Cash & Bank
Loans & Adv, Others
Curr Liabs & Provns
Curr. Liabilities
Provisions
Net Current Assets
Total Assets
(INR Million)
9 August 2017
3

NMDC
Financials and Valuations
Y/E Mar
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Cash P/E
Price / Book Value
EV/Sales
EV/EBITDA
Dividend Yield (%)
EV/ton
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios (%)
Asset Turnover (x)
Debtors (No. of Days)
Leverage Ratios (%)
Net Debt/Equity (x)
Ratios
2013
16.7
17.1
69.4
7.0
51.1
7.6
7.5
1.8
2.8
3.8
5.5
4
26.8
26.7
197.5
0.4
37
-0.8
2013
77,838
18,331
-5,281
-31,228
5
59,665
-19,563
40,102
-19
0
-19,582
0
0
0
-32,471
-32,471
7,612
202,646
210,258
2014
17.1
17.5
75.6
8.5
57.9
7.5
7.3
1.7
2.6
3.9
6.7
4
23.3
23.2
116.5
0.4
44
-0.6
2014
81,604
21,400
-27,095
-33,391
12
42,530
-22,888
19,642
-7
0
-22,895
0
0
0
-39,429
-39,429
-19,794
210,258
190,464
2015
17.5
17.9
81.5
8.6
42.2
7.3
7.1
1.6
2.6
3.9
6.7
4
22.0
22.0
92.5
0.4
52
-0.6
2015
81,369
23,200
-11,975
-30,314
-4,063
58,216
-24,331
33,885
-3,116
0
-27,447
0
0
0
-29,318
-29,318
1,451
186,572
188,023
2016
8.9
9.4
75.9
11.0
172.4
14.3
13.5
1.7
5.8
10.6
8.6
4
16.8
16.4
62.6
0.2
50
-0.4
2016
34,998
15,896
93
-17,373
-3,565
30,049
-20,242
9,807
-1,335
0
-21,576
0
14,970
0
-58,694
-43,724
-35,252
184,431
149,180
2017
10.0
10.6
71.2
5.2
74.9
12.8
12.0
1.8
4.0
7.8
4.0
4
12.8
12.2
41.4
0.4
50
-0.2
2017
44,944
155
13,117
-17,038
0
41,178
-23,505
17,673
-316
0
-23,821
-76,078
-14,970
0
-19,553
-110,601
-93,244
147,636
54,392
2018E
12.4
13.2
76.4
6.0
57.9
10.3
9.7
1.7
3.5
6.5
4.7
4
15.2
14.7
58.3
0.4
50
-0.1
2018E
57,254
3,712
-456
-19,314
0
41,196
-37,894
3,302
0
0
-37,894
0
0
0
-22,780
-22,780
-19,478
52,893
33,415
2019E
12.1
13.0
81.3
6.0
59.3
10.5
9.8
1.6
3.5
6.4
4.7
4
15.6
15.2
66.4
0.4
50
-0.1
2019E
57,028
2,127
21
-18,070
0
41,106
-16,000
25,106
0
0
-16,000
0
0
0
-22,780
-22,780
2,326
33,415
35,740
2020E
12.7
13.7
86.9
6.0
56.6
10.0
9.3
1.5
3.3
6.1
4.7
4
14.8
14.4
66.3
0.4
50
-0.1
2020E
60,016
2,148
-707
-18,944
0
42,514
-16,000
26,514
0
0
-16,000
0
0
0
-22,780
-22,780
3,734
35,740
39,474
Cash Flow Statement
Y/E Mar
Adjusted EBITDA
Non cash opr. exp (inc)
(Inc)/Dec in Wkg. Cap.
Tax Paid
Other operating activities
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free cash flows
(Pur)/Sale of Invt
Others
CF from Inv. Activity
Inc/(Dec) in Net Worth
Inc / (Dec) in Debt
Interest Paid
Divd Paid (incl Tax) & Others
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Opening Balance
Closing Balance
(INR Million)
9 August 2017
4

NMDC
Corporate profile
NMDC is India's largest iron ore producer, with a capacity
of 36mtpa. It produces ~30-32mtpa of iron ore from four
mining complexes in Chhattisgarh and Karnataka. In
addition to its iron ore operations, NMDC has a diamond
mine at Panna (Madhya Pradesh) and owns a 10.5MW
wind power plant in Karnataka. In July 2010, Sponge Iron
India, which has a small sponge iron capacity of 60ktpa,
was merged with NMDC. It is investing INR155b over the
next five years to expand its iron ore production to
50mtpa and forward integrate by setting up a 3mpta
steel plant in Chhattisgarh and 1.2mtpa pellet plant in
Karnataka.
Exhibit 2: Shareholding pattern (%)
Jun-17
Promoter
DII
FII
Others
74.9
17.0
4.3
3.8
Mar-17
74.9
16.7
4.9
3.5
Jun-16
80.0
13.5
3.8
2.7
Source: Capitaline
Company description
Exhibit 1: Sensex rebased
Source: MOSL/Bloomberg
Exhibit 3: Top holders
Holder Name
LIFE INSURANCE CORPORATION OF INDIA
LIFE INSURANCE CORPORATION OF INDIA P
& GS FUND
NA
NA
NA
% Holding
12.3
2.0
0.0
0.0
0.0
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
R Sridharan
D S Ahluwalia
A S Pardha Saradhi
Designation
Chairman & Managing
Director
Director (Finance)
Company Secretary
Exhibit 5: Directors
Name
T R K Rao
Sandeep Tula
N K Nanda
Bhagwati Mahesh Baldewa
Rajesh Mangal
Shymal K Sarkar
Name
Saraswati Prasad
P K Satpathy
A K Srivastava
Pradip Bhargava
S M Nigam
Syedain Abbasi
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Gopal Gupta & Co
Hanumanta Raju & Co
O P Totla & Co
Prasad Bharathula Associates
Tej Raj & Pal
Branch
Branch
Branch
Cost Auditor
Statutory
Source: Capitaline
Type
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
MOSL
forecast
12.4
12.1
12.7
Consensus
forecast
9.9
11.0
11.3
Variation (%)
25.4
10.2
12.4
Source: Bloomberg
9 August 2017
5

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
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Pending Regulatory Enquiries against Motilal Oswal Securities Limited by SEBI:
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 requested SEBI to provide all documents, records, investigation report relied upon by SEBI which were referred in Show Cause Notice and also sought personal
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
the subject company at the end of the month immediately preceding the date of publication of the Research Report.
MOSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a)
from time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and
earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other
potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s),
as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the
research report.
Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. MOSL and/or its associates may have received any compensation from the subject company in
the past 12 months.
In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have:
a)
managed or co-managed public offering of securities from subject company of this research report,
b)
received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
c)
received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
d)
Subject Company may have been a client of MOSL or its associates during twelve months preceding the date of distribution of the research report.
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
companies covered in its research reports. As a result, the recipients of this report should be aware that MOSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research
Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
Terms & Conditions:
This report has been prepared by MOSL 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 MOSL. 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. MOSL will not treat recipients as customers by virtue of their receiving this 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.
NMDC
Disclosure of Interest Statement
Analyst ownership of the stock
NMDC
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.
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 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
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 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:
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. 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
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 MOSL 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 MOSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or
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
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