Kaveri Seed Co.
BSE SENSEX
31,798
S&P CNX
9,908
9 August 2017
1QFY18 Results Update | Sector: Others
CMP: INR608
TP: INR738(+21%)
Buy
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Cotton leadership and product diversification to provide holistic growth
Revenue in-line; EBITDA and PAT beat estimates:
KSCL reported overall
revenue of INR5,906m (est. of INR5,829m) in 1QFY18, as against INR4,940m in
1QFY17, marking growth of 19.6%. EBITDA stood at INR2,069m (est. of
INR1,918m), as against INR1,583m in 1QFY17. Margins came in at 35% (est. of
32.9%) v/s 32% in 1QFY17 on account of a significant decline of 360bp in raw
material cost (52% of net sales). Consequently, adj. PAT stood at INR2,024m
(est. of INR1,864), as against INR1,544 in 1QFY17.
Growth reinforced by improved cotton acreage:
1QFY18 witnessed a sharp
increase of 27% in cotton volumes for KSCL, with cotton seeds gaining market
share in Gujarat and Maharashtra. New product contribution too increased
from 7% to 11% in 1QFY18, with the company launching two new cotton
hybrids and two others under demonstration. Although 1QFY18 witnessed
INR192m of inventory write-off primarily driven by cotton inventory, the write-
offs are expected to be lower for FY18 v/s FY17.
Focus on diverse product portfolio:
While the cotton business posted
significant growth, the company’s strategy would be to expand the non-cotton
business as well, which is evident from the rise of more than 40% in selection
rice volumes in 1QFY18 and new product contribution in Bajra increasing from
6% to 17% (in volume terms). The company is also expected to focus on the
north region to strengthen its distribution network.
Valuation and view:
KSCL benefited from better cotton acreages, leading to a
significant rise in cotton seed volumes. Going forward, we believe product
diversification and geographical expansion would lead to reduced dependency
on selective crops and regions, bolstering growth. Therefore, we raise our
earnings estimates for FY18/FY19 by 7%/8%. We value the stock at 18x FY19E
EPS, and maintain
Buy
with a TP of INR738.
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
KSCL IN
69
42.0 / 0.7
708 / 325
-5/15/54
396
45.6
Financials & Valuations (INR b)
2017 2018E 2019E
Y/E Mar
7.0
8.1
9.3
Net Sales
1.4
2.3
2.7
EBITDA
0.8
2.2
2.7
PAT
19.1
34.0
41.0
EPS (INR)
-21.4
78.6
20.4
Gr. (%)
146.8 139.2 159.8
BV/Sh (INR)
13.6
23.3
27.4
RoE (%)
16.0
25.1
29.6
RoCE (%)
31.9
17.9
14.8
P/E (x)
4.1
4.4
3.8
P/BV (x)
Estimate change
TP change
Rating change
Niket Shah – Research Analyst
(Niket.Shah@MotilalOswal.com); +91 22 6129 1535
Aksh Vashishth – Research Analyst
(Aksh.Vashishth@MotilalOswal.com); +91 22 6129 1553
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.

Kaveri Seed Co.
Revenue in-line; EBITDA and PAT beat estimates
KSCL reported overall revenue of INR5,906m (est. of INR5,829m) in 1QFY18, as
against INR4,940m in 1QFY17, marking growth of 19.6%.
EBITDA stood at INR2,069m (est. of INR1,918m), as against INR1,583m in
1QFY17. Margins came in at 35% (est. of 32.9%) v/s 32% in 1QFY17 on account
of a significant decline of 360bp in raw material cost (52% of net sales).
Consequently, adj. PAT stood at INR2,024m (est. of INR1,864), as against
INR1,544 in 1QFY17.
1QFY18 witnessed a sharp increase of 27% in cotton volumes, with the company
gaining market share in Gujarat and Maharashtra.
Maize volumes dropped by 18% on account of a decline in government business
volumes in the key states of Telangana and Karnataka.
The company also witnessed volume growth of more than 40% in selection rice
owing to Kharif production in 2016 and additional plant capacity.
Exhibit 2: EBITDA trend
YoY growth (%)
28.1
-8.4 2.2 -2.7 -1.9
19.6
EBIDTA (INR m)
41.8
39.8
23.3
21.1
EBITDA margin (%)
32.0
-15.7
5.0 5.0
34
-272
-67.4
2,069
35.0
Exhibit 1: Revenue trend
97.3
12.3
-31.6
Revenue (INR m)
2.9
1.9
-23.1
-34.8
-67.5
16.1
2,324 328 361 84 2,256
-446
163
1,583 34
-64
8,269
2,037 907 399 5,394
698 411 4,940 678 679 403 5,906
663
-67.3
Source: MOSL, Company
Source: MOSL, Company
Exhibit 3: PAT trend
PAT (INR m)
311.3
YoY growth (%)
2,304
42.5
335
358
-1.6
13
2,191
-482
117
-67.2
-104
0.0
1,544
77
-557
-872
0.0
2,024
31.1
-28.9
-5.1
0.0
-29.6
0.0
-40.9
Source: MOSL, Company
9 August 2017
2

Kaveri Seed Co.
Exhibit 4: Crop-wise area coverage during Kharif 2017 (Area in lakh hectare)
Crop
Cotton
Maize
Rice
Bajra
Pulses
Oilseeds
2017
114.3
72.3
280
63.5
121.3
148.9
2016
96.5
77
266.9
55
117
165.5
YoY Change %
18.5
(6.1)
4.9
15.6
3.7
11.7
Source: MOSL, Company
Exhibit 5: Cotton seed YoY comparison
Gross revenue (INR b)
5.4
5.2
Volume (mn packets)
6.5
Exhibit 6: Hybrid rice seed YoY comparison
Gross revenue (INR b)
1.7
Volume (mn packets)
1.7
1.6
4.04
1QFY16
3.27
1QFY17
4.28
1QFY18
Source: MOSL, Company
0.32
1QFY16
0.31
1QFY17
0.32
1QFY18
Source: MOSL, Company
Exhibit 7: Maize seed YoY comparison
Gross revenue (INR b)
6.6
4.4
Volume (mn packets)
5.4
0.51
1QFY16
0.77
1QFY17
0.68
1QFY18
Source: MOSL, Company
New launches to enable diversification
KSCL is expected to reduce its dependency on cotton, with continued
investment in R&D to launch hybrids in other crops.
In 1QFY18, the company launched three new maize hybrids for Kharif season,
with two new hybrids in Maize to be launched in Rabi.
KSCL also launched one product in hybrid rice and four new products in
selection rice, with one new hybrid in hybrid rice and two new products in
selection rice under demonstration.
Going forward, the focus would be to strengthen the distribution network
beyond south and central India, to the northern, eastern and western
geographies.
9 August 2017
3

Kaveri Seed Co.
Key concall highlights
Cotton witnessed highest growth in sowing this season, whereas sowing in
maize, soybean and oilseed declined.
The southern region saw the market share increase for smaller companies,
along with the use of illegal herbicides.
The company launched two new cotton hybrids with another two under
demonstration; three new hybrids in maize in Kharif along with two more to be
launched in Rabi; one new hybrid rice; and four new launches in selection rice.
The state of Tamil Nadu, which is the lead Kharif market, has been witnessing
challenges on account of low rainfall.
The board approved the purchase of land measuring 24.25 acres in Telangana to
be used for R&D and future expansion (total sale consideration of INR15cr).
The company has rolled out a wholly owned subsidiary to address the need for
mid-price segment, where the company will venture with products in cotton,
maize and rice.
The company’s continued focus would be to penetrate the northern markets
with a view to increase cotton market share.
Valuation and view
We value KSCL at 18x FY19E EPS of INR41, and arrive at a price target of
INR738 (21% upside)
KSCL benefited from better cotton acreages, leading to a significant rise in cotton
seed volumes. Going forward, we believe product diversification and geographical
expansion would lead to reduced dependency on selective crops and regions,
bolstering growth. Therefore, we raise our earnings estimates for FY18/FY19 by
7%/8%. We value the stock at 18x FY19E EPS and maintain
Buy
with a TP of INR738.
Exhibit 8: Key assumptions (%)
FY14
Market share
Cotton
Corn
Paddy
Revenue growth
Cotton
Corn
Paddy
Other seeds
16%
12%
6%
52%
40%
108%
-3%
FY15
16%
12%
6%
23%
-7%
10%
10%
FY16
13%
10%
5%
-47%
-15%
-42%
22%
FY17
14%
11%
4%
-15%
17%
-13%
3%
FY18E
14%
12%
5%
18%
5%
17%
10%
FY19E
15%
13%
5%
17%
14%
24%
15%
FY20E
15%
14%
6%
10%
17%
19%
15%
Source: MOSL, Company
9 August 2017
4

Kaveri Seed Co.
Financials and Valuations
Income Statement
Y/E March
Net Sales
Change (%)
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income - Rec.
PBT after EO Exp.
Current Tax
Deferred Tax
Tax Rate (%)
Reported PAT
PAT Adj for EO items
Change (%)
Margin (%)
FY13
7,120
91.2
1,393
19.6
122
1,271
15
49
1,319
36
2
2.9
1,281
1,268
100.8
17.8
FY13
137
3,311
3,448
0
0
31
3,479
1,813
439
1,374
81
1,318
5,902
4,912
686
143
161
5,196
5,039
157
705
3,479
FY14
10,111
42.0
2,212
21.9
164
2,048
2
97
2,143
37
-2
1.6
2,109
2,109
66.3
20.9
FY14
137
5,018
5,155
4
1
9
5,169
2,033
596
1,436
117
2,783
5,944
4,972
653
67
253
5,114
4,882
233
830
5,169
FY15
11,612
14.8
3,097
26.7
149
2,948
2
157
3,107
93
-1
3.0
3,014
3,011
42.8
25.9
FY15
138
7,410
7,548
2
0
14
7,564
2,351
743
1,608
617
2,950
6,994
4,943
1,768
66
216
4,608
4,362
245
2,386
7,564
FY16
7,449
-35.9
1,875
25.2
274
1,601
2
131
1,729
58
-3
3.2
1,675
1,675
-44.4
22.5
FY16
138
9,134
9,272
-2
0
16
9,286
3,033
1,018
2,015
197
5,064
6,327
5,044
804
94
386
4,320
4,237
83
2,007
9,286
FY17
7,050
-5.4
1,395
19.8
302
1,093
2
344
843
75
-5
8.3
773
1,316
-21.4
18.7
FY17
138
10,002
10,140
-7
1
46
10,180
3,335
1,320
2,015
327
6,569
6,358
4,478
854
208
818
5,095
4,876
219
1,263
10,180
FY18E
8,052
14.2
2,271
28.2
284
1,987
5
361
2,344
94
0
4.0
2,250
2,250
70.9
27.9
FY18E
132
9,068
9,200
-7
1
46
9,241
3,935
1,603
2,332
0
4,569
7,152
4,772
904
413
1,063
4,819
4,545
274
2,334
9,241
(INR Million)
FY19E
9,349
16.1
2,730
29.2
318
2,412
5
415
2,823
113
0
4.0
2,710
2,710
20.4
29.0
FY19E
132
10,430
10,562
-7
1
46
10,602
4,435
1,922
2,514
0
4,569
9,000
5,508
1,025
1,085
1,382
5,486
5,180
306
3,513
10,602
FY20E
10,547
12.8
3,132
29.7
351
2,781
5
478
3,254
130
0
4.0
3,124
3,124
15.3
29.6
FY20E
132
12,205
12,338
-7
1
46
12,378
4,935
2,273
2,662
0
4,569
11,303
6,189
1,156
2,161
1,797
6,163
5,821
342
5,140
12,378
Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Deferred Liabilities
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Appl. of Funds
(INR Million)
9 August 2017
5

Kaveri Seed Co.
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
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Working Capital Turnover (Days)
Leverage Ratio (x)
Current Ratio
Debt/Equity
FY13
18.5
20.3
50.3
3.2
20.0
32.9
30.0
12.1
5.9
30.1
0.5
43.3
44.2
81.8
2.0
252
35
258
29
1.1
0.0
FY13
1,319
122
15
36
-262
1,158
-59
1,099
-420
679
-207
46
-582
0
-208
-15
-256
8
-471
47
96
143
FY14
30.7
33.1
75.0
4.8
18.3
19.8
18.4
8.1
4.1
19.0
0.8
49.0
50.5
100.5
2.0
179
24
176
28
1.2
0.0
FY14
2,143
164
2
54
-230
2,026
-94
1,932
-255
1,677
-1,464
95
-1,624
0
0
-2
-387
5
-384
-76
143
66
FY15
43.7
45.9
109.6
7.5
20.6
13.9
13.3
5.5
3.6
13.5
1.2
47.4
50.2
98.9
1.5
155
56
137
73
1.5
0.0
FY15
3,100
149
2
93
-1,561
1,597
-150
1,447
-819
628
-33
16
-836
0
5
-2
-621
5
-613
-1
67
65
FY16
24.3
28.2
134.3
5.0
24.7
25.1
21.5
4.5
5.6
22.3
0.8
19.9
21.2
42.0
0.8
247
39
208
94
1.5
0.0
FY16
1,729
274
2
58
407
2,355
467
2,822
-262
2,560
-2,114
-4
-2,380
0
2
-2
-414
-415
28
66
93
FY17
19.1
23.4
146.8
3.0
32.2
31.9
25.9
4.1
5.9
30.0
0.5
13.6
16.0
33.8
0.7
232
44
252
55
1.2
0.0
FY17
1,435
302
2
75
859
2,524
-245
2,279
-432
1,847
-1,505
-5
-1,943
0
30
-2
-249
0
-221
115
94
209
FY18E
34.0
38.3
139.2
14.5
52.9
17.9
15.9
4.4
5.2
18.3
2.4
23.3
25.1
56.4
0.9
216
41
206
87
1.5
0.0
FY18E
2,344
284
5
94
-866
1,672
0
1,672
-273
1,399
2,000
0
1,727
-2,000
0
-5
-1,190
0
-3,194
204
208
413
FY19E
41.0
45.8
159.8
16.4
49.8
14.8
13.3
3.8
4.4
15.0
2.7
27.4
29.6
54.5
0.9
215
40
202
95
1.6
0.0
FY19E
2,823
318
5
113
-508
2,525
0
2,525
-500
2,025
0
0
-500
0
0
-5
-1,348
0
-1,353
672
413
1,085
FY20E
47.3
52.6
186.7
16.4
43.2
12.9
11.6
3.3
3.8
12.7
2.7
27.3
29.5
54.6
0.9
214
40
201
103
1.8
0.0
FY20E
3,254
351
5
130
-550
2,929
0
2,929
-500
2,429
0
0
-500
0
0
-5
-1,348
0
-1,353
1,077
1,085
2,161
Cash Flow Statement
Y/E March
Net P / L Bef. Tax and Eo Items
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
EO Expense
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
Add: Beginning Balance
Closing Balance
(INR Million)
9 August 2017
6

Kaveri Seed Co.
Corporate profile
Company description
Kaveri is one of the fastest growing seed company in India
with a large network of over 15,000 distributors and dealers
spread across the country. With over 700 employees and a
strong product line of hybrids. KSCL is one of the leading
players in seeds industry with dominant positioning in most
of the key crops: cotton (20% market share), Corn (~13%
market share), Bajra (13% market share) and Rice (~9%
market share). With one of the largest anthology of crop
germplasm in the country, Kaveri’s draught and disease
resistant as well as high yielding hybrid and varietal
portfolio includes Cotton, Corn, Rice, Jowar, Bajra, as well as
vegetable such as Tomato, Okra and gourds.
Exhibit 1: Sensex rebased
Source: MOSL/Bloomberg
Exhibit 2: Shareholding pattern (%)
Jun-17
Promoter
DII
FII
Others
54.4
6.8
21.3
17.5
Mar-17
54.4
7.3
20.9
17.4
Jun-16
57.5
17.4
8.9
16.2
Source: Capitaline
Exhibit 3: Top holders
Holder Name
Foreign Institutional Investors (FIIs)
ASHOKA PTE LTD
NATIONAL WESTMINSTER BANK PLC AS
TRUSTEE OF THE JUPITER INDIA FUND
BIRLA SUN LIFE TRUSTEE COMPANY PRIVATE
LIMITED AC BIRLA SUN LIFE BALANCED 95
FUND
MACQUARIE EMERGING MARKETS ASIAN
TRADING PTE. LTD.
% Holding
4.9
3.0
2.1
2.0
2.0
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Gundavaram Venkata Bhaskar Rao
V R S Murti
Designation
Chairman & Managing
Director
Company Secretary
Exhibit 5: Directors
Name
Gundavaram Pawan
Muppidi Srikanth Reddy
S M Llyas
Yeshwant Laxman Nene
Chennameneni Vamsheedhar
Name
K Purushotham
P Vara Prasada Rao
S Raghuvardhan Reddy
Chennameneni Mithun Chand
Gundavaram Vanaja Devi
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
L D Reddy & Co
M Bhaskar Rao & Co
P R Reddy & Co
Internal
Statutory
Type
Secretarial Audit
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
MOSL
forecast
34.0
41.0
47.3
Consensus
forecast
32.3
38.1
39.6
Variation (%)
5.2
7.5
19.5
Source: Bloomberg
Source: Capitaline
9 August 2017
7

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),
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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,
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received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
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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)
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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
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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.
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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.
Kaveri Seed Co.
Disclosure of Interest Statement
Analyst ownership of the stock
Kaveri Seed Co.
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.
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
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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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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:
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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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