14 August 2017
1QFY18 Results Update | Sector: Fertilizers
PI Industries
Buy
BSE SENSEX
31,449
S&P CNX
9,794
CMP: INR713
TP: INR894(+25%)
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Growth to normalize post recovery in global agchem market
GST transition disrupts growth:
PI’s overall revenue fell 14.4% YoY to
INR5,848m (est. of INR7,517m) in 1QFY18. EBITDA margin shrunk 190bp YoY to
22.3% (est. of 25%), led by higher other expenses (+300bp YoY) and employee
cost (+210bp). EBITDA declined 21% YoY to INR1,304m. Consequently, adj. PAT
fell 21% YoY to INR1,001m (est. of INR1,283m).
Soft product uptake; demand to normalize in 2HFY18:
1QFY18 witnessed
deferment in product uptake, despite better monsoon and higher major crop
acreages, on account of GST transition. Domestic revenue declined 17% YoY to
INR2,848m, while exports fell 12% YoY to INR3,000m. PI, however, expects the
global companies to pump up their inventory in 2HFY18 as the global agchem
market recovers, normalizing exports. The company continues investing in R&D
capabilities to drive new product introductions, keeping itself ready for any
normalization in growth momentum.
Product pipeline stands strong:
PI is well on track with its new products, as
witnessed by the launch of ‘ELITE’, a maize herbicide, in partnership with BASF.
The company also introduced two rice fungicides – ‘HEADER’ and ‘FENDER’ –
and is expected to launch two more products in FY18. PI is set to leverage its
collaborations and JVs to further strengthen its product pipeline, allowing
better execution of its order book (stands at USD1b) to garner more share in
the market.
Valuation and view:
We believe PI is well placed to leverage the turnaround in
the global agchem scenario on the back of continued investment in R&D and a
strong product pipeline. However, with global demand picking up only in
2HFY18, we cut our earnings estimates by 9%/5% for FY18/FY19. We maintain
our
Buy
rating with a TP of INR894, 25x FY19E EPS.
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg. Val, INRm
Free float (%)
PI IN
138
94.8 / 1.5
950 / 674
-8/-31/-23
136
48.5
Financials & Valuations (INR b)
2017 2018E 2019E
Y/E Mar
Net Sales
23.8
25.3
28.6
EBITDA
5.5
5.7
6.7
PAT
4.6
4.2
4.9
EPS (INR)
33.4
30.4
35.8
Gr. (%)
46.4
-8.9
17.6
BV/Sh (INR)
118.3 142.0 169.8
RoE (%)
32.8
23.4
22.9
RoCE (%)
31.0
23.0
22.9
P/E (x)
21.4
23.4
19.9
P/BV (x)
6.0
5.0
4.2
Estimate change
TP change
Rating change
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.
Niket Shah – Research Analyst
(Niket.Shah@MotilalOswal.com); +91 22 6129 1535
Aksh Vashishth – Research Analyst
(Aksh.Vashishth@MotilalOswal.com); +91 22 6129 1553

PI Industries
Result below estimates; GST transition disrupts growth
PI’s overall revenue declined 14.4% to INR5,848m (est. INR7,517m) in 1QFY18
on account of moderation in domestic demand due to destocking because of
GST transition.
Domestic revenue witnessed a decline of 17% YoY to INR2,848m, while exports
declined 12% YoY to INR3,000m.
However, the quarter witnessed gross margin expansion of 200bp to 53.3%.
EBITDA margin contracted by 190bp to 22.3% (est. of 25%) in 1QFY18, led by a
300bp rise in other expenses and a 210bp rise in employee cost.
EBITDA during the quarter stood at INR1,304m, down 21% YoY. Consequently,
adj. PAT declined 21% YoY to INR1,001m (est. of INR1,283m).
Exhibit 1: Revenue growth trend
39%
16%
-8%
48%
Revenues (INR m)
26%
12%
4%
Growth (%)
15%
14%
-4%
13%
4%
-14%
4,712 4,266 5,049 5,370 5,921 4,768 5,237 6,048 6,834 5,440 5,003 6,273 5,848
Source: Company, MOSL
Exhibit 2: EBITDA trend
EBITDA
23%
19% 18%
17%
23%
18%
20%
Margin (%)
24%
18%
13%
24%
21%
22%
Exhibit 3: PAT trend
PAT
15%
15%
Margin (%)
16%
19%
19%
22%
17%
11% 12% 11%
12%
14%
8%
Source: Company, MOSL
Source: Company, MOSL
We value PI at 25x FY19E EPS, arriving at a TP of 894 (25% upside), which we believe
is justified considering:
Valuation and view
Growth momentum in exports is expected to pick up in 2HFY18, with the
recovery in global agchem market.
The order book continues to remain strong at USD1b, which is expected to get
executed at a faster pace as the industry recovers from destocking woes due to
GST.
PI plans to continue investing in R&D capabilities to drive new product
introductions. As witnessed by the introduction of a maize herbicide, two rice
2
14 August 2017

PI Industries
fungicides and the plan to launch two more products in FY18, the company is on
track to expand its product portfolio with a view to capture more market share.
However, with global demand picking up only in 2HFY18, we cut our earnings
estimates by 9%/5% for FY18/FY19. We maintain Buy rating with a target price
of INR894, 25x FY19E EPS
Exhibit 5: 15 Year P/B band
Exhibit 4: 15 Year P/E band
Source: Company, MOSL
Source: Company, MOSL
14 August 2017
3

PI Industries
Story in charts
Exhibit 6: High CSM contribution
Domestic agri-inputs
42%
CSM exports
Exhibit 7: Order book to revenue ratio in CSM
Revenue USD mn
Order book to revenue
59%
3.85
2.77
2.58
3.10
Order book USD mn
4.78
52%
58%
59%
58%
59%
59%
59%
4.34
4.35
58%
48%
42%
41%
42%
41%
41%
41%
41%
FY12
FY13
FY14
FY15
FY16
FY17
FY18E
FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 8: Consistently strong asset turnover
Asset Turnover (x)
1.9
1.5
1.5
1.9
1.7
1.4
1.3
1.2
1.2
Exhibit 9: High cash flow generation
Free cash flow (INR m)
5,309
4,345
2,753
1,548
156
(47)
732
2,108
FY12
FY13
FY14
FY15
FY16
FY17 FY18E FY19E FY20E
Source: Company, MOSL
(490)
FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E
Source: Company, MOSL
Exhibit 10: Steady growth in domestic agro-chem business
23%
Revenues (INR m)
22%
19%
15%
12%
9%
5%
7%
14%
Growth (%)
Exhibit 11: Strong RoCE profile
27.3
27.5
27.6
27.7
31.0
23.0
22.9
28.0
25.1
5,052 5,500 6,700 8,000 9,230 9,712 10,392 11,639 13,210
FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E
Source: Company, MOSL
FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E
Source: Company, MOSL
14 August 2017
4

PI Industries
Key assumptions
Exhibit 12: Assumption sheet
FY14
Revenues (INR m)
Domestic agro-chemicals
CSM
Revenues growth (%)
Domestic agro-chemicals
CSM
EBITDA (INR m)
Domestic agro-chemicals
CSM
EBITDA margins (%)
Domestic agro-chemicals
CSM
22%
54%
2,889
1,039
1,785
18.1%
15.5%
19.3%
19%
23%
3,723
1,280
2,392
19.2%
16.0%
21.0%
15%
12%
4,493
1,689
2,804
20.4%
18.3%
22.0%
5%
11%
5,780
2,137
3,643
24.3%
22.0%
25.8%
7%
10%
6,130
2,286
3,844
24.2%
22.0%
25.7%
12%
12%
7,035
2,595
4,440
24.6%
22.3%
26.1%
14%
14%
7,985
2,946
5,039
24.6%
22.3%
26.1%
15,955
6,700
9,250
FY15
19,390
8,000
11,390
FY16
21,974
9,230
12,744
FY17
23,833
9,712
14,121
FY18E
25,350
10,392
14,958
FY19E
28,649
11,639
17,010
FY20E
32,517
13,210
19,307
Source: Company, MOSL
14 August 2017
5

PI Industries
Financials and Valuations
Income Statement
(Consolidated)
Y/E March
Total Income from Operations
Change (%)
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Current Tax
Deferred Tax
Tax Rate (%)
Less: Mionrity Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
Y/E March
Equity Share Capital
Preference Capital
Total Reserves
Net Worth
Minority Interest
Deferred Liabilities
Total Loans
Capital Employed
FY14
16,812
37.9
2,889
17.2
316
2,573
118
158
2,613
0
2,613
779
-46
28.1
0
1,880
1,880
14.0
11.2
FY14
136
0
6,809
6,945
0
485
1,223
8,653
6,829
1,563
5,267
0
425
5
7,482
3,188
2,568
438
1,289
4,574
4,251
324
2,908
48
0
8,653
FY15
20,332
20.9
3,727
18.3
498
3,229
97
420
3,552
0
3,552
1,147
-54
30.8
0
2,459
2,459
30.8
12.1
FY15
137
0
8,828
8,965
0
434
1,148
10,546
7,050
1,724
5,326
0
1,332
5
9,668
3,782
3,826
341
1,719
5,851
5,437
413
3,817
65
0
10,546
FY16
21,974
8.1
4,312
19.6
543
3,769
96
355
4,028
0
4,028
909
4
22.7
0
3,115
3,115
26.7
14.2
FY16
137
0
11,572
11,709
0
353
1,244
13,306
11,008
2,266
8,742
0
713
3
10,028
3,948
3,978
560
1,543
6,180
5,984
196
3,849
0
0
13,307
FY17
23,833
8.5
5,533
23.2
730
4,802
72
366
5,096
0
5,096
1,035
-534
9.8
0.9
4,594
4,594
47.5
19.3
FY17
138
0
16,134
16,272
0
0
829
17,101
12,447
2,997
9,450
0
773
832
11,760
4,320
4,237
1,326
1,877
5,913
5,685
227
5,847
198
0
17,101
FY18E
25,350
6.4
5,712
22.5
805
4,907
30
421
5,298
0
5,298
1,113
0
21.0
0.9
4,185
4,185
-8.9
16.5
FY18E
138
0
19,397
19,534
0
0
0
19,534
13,947
3,802
10,145
0
253
832
15,669
4,237
4,514
4,854
2,064
7,564
6,168
1,395
8,105
198
0
19,534
FY19E
28,649
13.0
6,656
23.2
912
5,744
0
484
6,228
0
6,228
1,308
0
21.0
0.9
4,920
4,920
17.6
17.2
FY19E
138
0
23,226
23,364
0
0
0
23,364
15,947
4,714
11,233
0
286
832
17,990
4,540
5,102
5,871
2,477
7,176
6,810
366
10,814
198
0
23,364
(INR Million)
FY20E
32,517
13.5
7,652
23.5
1,019
6,633
0
557
7,190
0
7,190
1,510
0
21.0
0.9
5,680
5,680
15.4
17.5
Balance Sheet (Consolidated)
(INR Million)
FY20E
138
0
27,816
27,953
0
0
0
27,953
17,447
5,732
11,715
0
325
832
23,020
5,131
5,791
9,125
2,973
8,137
7,697
440
14,883
198
0
27,953
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
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
Deferred Tax assets
Misc Expenditure
Appl. of Funds
14 August 2017
6

PI Industries
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
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Working Cap. Turnover (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Debt/Equity
FY14
13.8
16.1
51.0
2.0
17.0
51.6
44.2
14.0
5.7
33.1
0.3
11.4
30.7
25.1
24.7
1.9
126
56
169
54
1.6
22
0.2
FY14
2,613
316
-20
-743
-81
2,084
104
2,188
-640
1,548
0
179
-461
40
-1,097
-115
-272
-7
-1,451
276
161
437
FY15
18.0
21.6
65.6
2.5
16.9
39.6
32.9
10.9
4.7
25.6
0.4
1.1
30.9
27.6
26.8
1.9
124
69
178
62
1.7
33
0.1
FY15
3,552
498
-126
-1,195
-971
1,759
83
1,841
-1,685
156
0
274
-1,412
38
-153
-111
-300
0
-526
-96
437
341
FY16
22.8
26.8
85.7
3.1
16.6
31.3
26.6
8.3
4.3
22.1
0.4
5.4
30.1
27.7
27.9
1.7
124
66
189
55
1.6
39
0.1
FY16
4,028
543
96
-909
187
3,945
126
4,071
-3,339
732
0
2
-3,337
0
96
-96
-516
0
-515
219
341
560
FY17
33.4
38.7
118.3
4.0
14.6
21.4
18.4
6.0
4.0
17.0
0.6
20.0
32.8
31.0
33.1
1.4
136
65
178
69
2.0
67
0.1
FY17
5,096
730
72
-1,035
-1,232
3,632
620
4,252
-1,499
2,753
0
-829
-2,328
1
-415
-72
-671
-1
-1,158
766
560
1,326
FY18E
30.4
36.3
142.0
5.5
22.0
23.4
19.7
5.0
3.5
15.7
0.8
38.6
23.4
23.0
27.9
1.3
125
65
182
47
2.1
164
0.0
FY18E
5,298
805
30
-1,113
1,269
6,290
0
6,290
-980
5,309
0
0
-980
0
-829
-30
-922
-1
-1,782
3,527
1,326
4,853
FY19E
35.8
42.4
169.8
6.5
22.2
19.9
16.8
4.2
3.1
13.4
0.9
15.3
22.9
22.9
30.3
1.2
120
65
180
63
2.5
-
0.0
FY19E
6,228
912
0
-1,308
-1,691
4,141
0
4,141
-2,033
2,108
0
0
-2,033
0
0
0
-1,090
-1
-1,091
1,017
4,853
5,871
FY20E
41.3
48.7
203.1
6.5
19.2
17.3
14.6
3.5
2.6
11.2
0.9
31.6
22.1
28.0
1.2
120
65
180
65
2.8
947,638
0.0
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)
FY20E
7,190
1,019
0
-1,510
-815
5,884
0
5,884
-1,539
4,345
0
0
-1,539
0
0
0
-1,090
-1
-1,091
3,254
5,871
9,125
14 August 2017
7

PI Industries
Corporate profile
Company description
Mr. Piyush Singhal founded PI Industries in 1947 as
Mewar Oil and General Mills Limited, which was
predominantly into edible oils business. A decade later,
the company started selling agro-chemicals. The name
was changed to PI Industries in 1990s. PI has two
business activities: (a) Domestic Agri Inputs offering plant
protection products, and specialty plant nutrient
products and solutions, (b) Custom Synthesis &
Manufacturing (CSM) for contract research and
production of agro-chemicals, intermediates and other
niche fine chemicals for global innovators.
Exhibit 1: Sensex rebased
Source: MOSL/Bloomberg
Exhibit 2: Shareholding pattern (%)
Jun-17
Promoter
DII
FII
Others
51.6
15.8
18.4
14.3
Mar-17
51.6
13.6
21.9
13.0
Jun-16
51.7
13.0
22.1
13.2
Source: Capitaline
Exhibit 3: Top holders
Holder Name
Cartica Capital Ltd.
ICICI Prudential Balanced Advatage Fund
SBI Magnum Global Fund
Axis Mutual Fund Trustee Ltd. A/c Axis
Mutual Fund A/c Axis Long Term Equity Fund
Small Cap World Fund, Inc
% Holding
5.0
4.7
3.9
3.6
1.9
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Narayan K Seshadri
Salil Singhal
Mayank Singhal
Naresh Kapoor
Designation
Chairman
(Non-
Executive)
Chairman Emeritus
Managing Director &
CEO
Company Secretary
Exhibit 5: Directors
Name
Pravin K Laheri
Rajnish Sarna
Ravi Narain
Name
Ramani Narula
Arvind Singhal
*Independent
Source: Capitaline
Exhibit 6: Auditors
Name
K G Goyal & Co
KPMG
R S Bhatia
S S Kothari Mehta & Co
Internal
Secretarial Audit
Statutory
Source: Capitaline
Type
Cost Auditor
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
MOSL
forecast
30.4
35.8
41.3
Consensus
forecast
34.2
39.7
44.4
Variation (%)
-11.1
-9.8
-7.0
Source: Bloomberg
14 August 2017
8

PI Industries
NOTES
14 August 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
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.
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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.
PI Industries
Disclosure of Interest Statement
Analyst ownership of the stock
PI Industries
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
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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.
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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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