Petronet LNG
BSE SENSEX
31,627
S&P CNX
9,873
25 September 2017
Update
| Sector:
Oil & Gas
CMP: INR228
TP: INR275 (+20%)
Buy
Firm utilization continues
Dahej continues to lead; Kochi to improve utilization
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
M.Cap. (INR b)
M.Cap. (USD b)
12M Avg Val (INR M)
Free float (%)
PLNG IN
1,500.0
242 / 163
1/4/23
343.5
5.3
1081
50.0
Our channel checks suggest more than full utilization at Dahej and marginally
increased throughput at the Kochi LNG terminal.
We continue believing that increased domestic gas production and upcoming
competition would not be a significant risk to utilization.
Reiterate Buy with a target price of INR275.
Firm utilization at Dahej
On capacity of 15mmtpa, PLNG has firm take-or-pay utilization contracts of
15.75mmtpa.
Our channel checks further suggest that LNG arrival at Dahej is happening at a
rate of 16mmtpa, reflecting above full utilization.
Financials Snapshot (INR b)
Y/E Mar
2017 2018E
Net Sales
EBITDA
PAT
EPS (INR)
Gr. (%)
BV/Sh (INR)
RoE (%)
RoCE (%)
P/E (x)
P/BV (x)
246.2
25.9
17.1
11.4
102.7
54.0
23.2
20.2
20.1
4.2
270.8
31.0
21.0
14.0
23.1
64.0
23.7
21.0
16.3
3.6
2019E
338.1
39.3
26.9
17.9
28.2
76.9
25.5
24.0
12.7
3.0
Do not see much competition
Among the existing terminals, Dabhol would remain underutilized due to the
lack of breakwater facility, the tender for which has not yet been awarded.
GSPC/Adani’s 5mmtpa Mundra LNG terminal is expected to come in early
2018, with the completion of 60km Mundra-Anjar pipeline being key to this.
Additionally, capacity of the existing 170km 3mmtpa Anjar-Chotila network
needs to be augmented to handle the full load. Tender for this has not yet
been awarded.
IOCL’s Ennore LNG terminal would come up in 2019, and service an entirely
new set of consumers without being any threat to PLNG.
Shareholding pattern (%)
As On
Sep-16 Jun-16 Sep-15
Promoter
DII
FII
Others
50.0
12.1
22.3
15.6
50.0
17.7
19.4
12.9
50.0
16.5
21.3
12.3
EPS CAGR of 17% over FY17-20
FII Includes depository receipts
Stock Performance (1-year)
Petronet LNG
Sensex - Rebased
250
225
200
175
150
PLNG is likely to continue gradual capacity addition at Dahej terminal to benefit
from the evolving LNG opportunity in India. We expect its total capacity to
reach 22.5mmtpa by FY20.
Firm offtake contracts at Dahej terminal and ramp-up of Kochi terminal would
enable PLNG to post volume CAGR of 10% over FY17-20. We do not assume
any escalation in Kochi re-gas charge 2018 onward.
Assured volume growth and tariff hikes would help PLNG to post 16%/17%
EBITDA/PAT CAGR over FY17-20.
The stock is trading at 12.7x FY19E EPS of INR18 and 8.2x FY19E EV/EBITDA. We
value the stock using DCF (WACC of 11%, terminal growth of 3%). With a target
price of INR275, we reiterate our
Buy
rating on the stock.
Key triggers to watch out: (i) progress on the completion of Kochi-Mangalore
pipeline, (ii) ramp-up of domestic gas production and (iii) progress of Dahej
expansion from 15mmtpa to 17.5mmtpa.
Valuation and view
Swarnendu Bhushan – Research Analyst
(Swarnendu.Bhushan@MotilalOswal.com); +91 22 6129 1529
Abhinil Dahiwale – Research Analyst
(Abhinil.Dahiwale@motilaloswal.com); +91 22 3980 4309
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.

Petronet LNG
Valuation and view
Reiterate Buy with a target price of INR275
Strong earnings visibility:
Visibility on PLNG’s medium/long-term earnings is
high, given (a) the huge gas demand-supply gap in India, (b) volume growth,
driven by gradual capacity addition and (c) earnings growth boosted by annual
re-gas charge escalation to protect IRR.
Poor competition from existing and upcoming terminals:
We believe that the
existing Dabhol and Hazira terminals would remain underutilized, while the
upcoming Mundra and Ennore terminals would face pipeline issues.
LNG prices to correct downward:
We believe that LNG prices would remain
structurally weak for a long time, even if oil prices were to rise, due to (a)
decoupling of oil-gas price link since 2009 due to abundance in supply of shale
gas and (b) 142mmtpa of LNG liquefaction capacity under various stages of
construction v/s global LNG trade of 245mmt in 2015.
Key assumptions
In our estimates through FY22, we model (a) 9% volume CAGR over FY17-22E, (b) 5%
annual increase in re-gas changes and INR29.6/mmbtu of marketing margins for
Dahej terminal and (c) ~3-4% hike in re-gas charges for FY18/19 and flat growth
thereafter for the Kochi terminal.
Exhibit 1: PLNG – Key assumptions
Exchange Rate (INR/USD)
Capacity (mmt)
Dahej
Kochi
Throughput (mmt)
Dahej
Long term
Re-gas
Spot/Short term
Kochi
Utilization rate (%)
Dahej
Kochi
Re-gasification charges (INR/mmbtu)
Dahej
Kochi
FY13
54.4
10.0
10.0
10.4
10.4
7.5
0.9
2.0
104%
104%
FY14
60.6
15.0
10.0
5.0
9.7
9.7
7.4
1.1
1.2
0.0
65%
97%
1%
37.2
62.8
FY15
61.4
15.0
10.0
5.0
10.5
10.4
6.8
2.1
1.4
0.1
70%
104%
2%
39.1
65.9
FY16
65.5
15.0
10.0
5.0
11.2
10.9
5.5
4.2
1.5
0.3
75%
109%
6%
41.0
69.2
FY17
67.1
16.3
11.3
5.0
14.4
14.1
8.4
5.1
0.7
0.3
88%
126%
5%
43.1
72.7
FY18E
64.5
20.0
15.0
5.0
16.3
15.5
7.9
7.1
0.4
0.8
82%
103%
17%
45.2
75.5
FY19E
66.1
20.0
15.0
5.0
19.0
16.5
7.7
7.5
1.3
2.5
95%
110%
50%
47.5
77.2
FY20E
66.1
22.5
17.5
5.0
19.1
16.6
7.7
7.5
1.5
2.5
85%
95%
50%
FY21E
66.1
22.5
17.5
5.0
20.0
17.5
7.7
7.5
2.3
2.5
89%
100%
50%
FY22E
66.1
22.5
17.5
5.0
22.0
17.5
7.7
7.5
2.3
4.5
98%
100%
90%
35.5
62.0
49.9
52.4
55.0
77.2
77.2
77.2
Source: Company, MOSL
25 September 2017
2

Petronet LNG
Buy with one-year target of INR275, implying upside of 20%
We value PLNG on DCF to arrive at a price target of INR275. The stock trades at
12.7x FY19E EPS of INR18.
Exhibit 2: We value PLNG on DCF methodology
PAT incl. div/FBT
Depr
Change in net working capital
Capex
FCFF (INR m)
One year valuation
NPV (INR m)
Terminal growth rate
TV (INR m)
Enterprise value (INR m)
Net debt (INR m)
Equity value (INR m)
Target price (INR)
WACC Calculation
Risk free rate
Beta
Rm
Re
D/E
Rd
WACC
FY16
9,133
3,216
17086.89
-9,931
19,504
FY17
17,057
3,691
-25979
-4,796
-10,028
FY18
21,021
4,310
-3889
-5,000
16,442
FY19
26,995
5,760
565.29
-5,000
28320
FY20
27,389
5,885
336.9
-5,000
28,611
FY21
31,228
6,010
526.16
-5,000
32,764
FY22
37,275
6,135
620.58
-5,000
39,031
114,844
3.0%
298,220
413,064
751
412,313
275
7.0%
0.826
14.0%
12.8%
30.0%
4.0%
11.0%
Source: Company
25 September 2017
3

Petronet LNG
Story in charts
Exhibit 3: Volume growth led by capacity ramp-up
Dahej
Kochi
Total
14.4
16.3
19.0 19.1
160
120
80
40
0
2009
Source: Bloomberg, Platts, MOSL
2015
2021
Source: Bloomberg, Platts, MOSL
Exhibit 4: 142mmtpa
under
construction
Africa
FSU
Middle East
of
liquefaction
capacity
Europe
North America
Asia Pacific
Latin America
7.9
-
7.9
2.5 2.5
10.9 10.4 9.8 10.4 11.5
0.9
8.8
0.3
0.3
-
16.5 16.6
-
0.1 0.1
14.1 15.5
- 10.9 10.4
9.7 10.3 11.2
8.8
Exhibit 5: EBITDA/PAT margins to improve
EBITDA margins (%)
11.8
11.6
10.5
PAT margins (%)
12.0
11.9
11.9
Exhibit 6: Expect PLNG to report ~17% EPS CAGR over FY17-
20E
EPS (INR)
103%
53%
77%
5%
-38%
4.1 7.3 7.7 4.7 5.0 5.6 11.4 14.0 18.0 18.3 20.8 24.9
5% 12%
23% 28%
14% 19%
YoY (%)
5.9
6.9
3.1
FY16
FY17
7.9
8.1
8.1
8.6
8.9
1%
FY18E
FY19E
FY20E
FY21E
FY22E
FY11
FY13
FY15
FY17
FY19E
FY21E
Source: Company, MOSL
Source: IGU, MOSL
Exhibit 7: Return ration to improve
40
30
20
10
0
FY10
FY12
FY14
FY16
FY18E
FY20E
Source: Company, MOSL
RoE
Exhibit 8: 1Y Fwd Petronet LNG P/E
P/E (x)
Avg (x)
20.0
14.0
8.0
2.0
Max (x)
19.1
14.7
10.4
6.2
2.6
14.5
Source: Company, MOSL
25 September 2017
4

Petronet LNG
Financials and
in tariff hike at Dahej from 2021
Valuations
Exhibit 9: Not building
Dahej tariff (INR/mmBtu)
Marketing margin on shot-term/spot (INR/mmBtu)
Standalone
66.6
- Income Statement
55.8
49.9
Y/E March
FY13
FY14
41.6
35.5 37.2 39.1 41.0 43.1 45.2 47.5
33.8
30.3 30.3 30.3
27.7
314,672
Total Income from Operations
377,476
Exhibit 10: Not building in any tariff hike at Kochi from 2018
Kochi tariff (INR/mmBtu)
65.9
69.2
72.7
75.4
75.4
62.8
62.0
FY15
FY16
FY17
FY18E
FY19E
FY20E
395,010
271,334
246,160
266,870
334,370
339,677
9.3
Change (%)
38.6
20.0
4.6
-31.3
-9.3
8.4
25.3
1.6
Raw Materials
293,050
358,424
376,109
250,757
214,169
228,766
285,345
288,198
Employees Cost
370
466
571
717
739
931
1,240
1,438
Other Expenses
2,819
3,601
3,940
3,958
5,330
6,105
8,414
9,719
(30.8)
Total Expenditure
296,239
362,491
380,620
255,431
220,238
235,802
295,000
299,355
% of Sales
94.1
96.0
96.4
94.1
89.5
88.4
88.2
88.1
EBITDA
18,433
14,984
15,903
25,923
31,067
Source: Company,
40,322
39,370
Source: Company, MOSL
14,390
MOSL
Margin (%)
5.9
4.0
3.6
5.9
10.5
11.6
11.8
11.9
Depreciation
EPS to grow 3x over FY16-19E
1,866
3,081
3,154
12:
3,216
4,310
5,760
5,885
Exhibit 11:
Exhibit
Improving
3,691
ratios
return
EBIT
16,567
11,903
11,236
12,687
22,232
26,757
33,610
34,437
Adj EPS
EPS Growth (%)-RHS
RoE
RoCE
Int. and Finance Charges
1,184
2,196
2,935
2,387
2,097
1,068
564
7
55.1
28.8
27.7
42.0
Other Income
1,817 35.2
838
1,548
1,704
3,466
4,504
5,517
7,062
24.8
23.4
24.0
PBT bef. EO Exp.
17,200
10,545
9,849
12,004
23,602
30,193
38,564
41,492
20.6
8.7
26.0
EO Items
0
0
1,323
724
0
0
0
0
3.6
1.5
16.5
23.4
15.2
30,193
15.1
PBT after EO Exp.
17,200
10,545
11,172
12,728
23,602
38,564
41,492
20.8
17.9
Total Tax
5,710
3,426
2,347
3,588
6,545
9,173
11,569
14,103
16.7
-38.1
Tax Rate (%)
33.2
32.5
21.0
28.2
14.4
27.7
30.4
30.0
34.0
13.3
11.4
15.3
PAT
9.5
11.8
12.2
18.9
26.8
36.3
7,119
36.8
Reported
11,490
8,825
9,140
17,057
21,021
26,995
27,389
Adjusted PAT
11,490
7,119
7,502
8,416
17,057
21,021
26,995
27,389
Change (%)
4.9
-38.0
5.4
12.2
102.7
23.2
28.4
1.5
Margin (%)
3.7
1.9
1.9
3.1
6.9
7.9
8.1
8.1
Source: Company, MOSL
Source: Company, MOSL
(INR Million)
75.4
Standalone - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Total Loans
Deferred Tax Liabilities
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
E: MOSL Estimates
FY13
7,500
36,997
44,497
27,182
3,910
75,589
35,796
12,217
23,579
43,305
1,399
42,546
10,366
16,898
12,685
2,596
35,239
32,940
2,299
7,306
75,589
FY14
7,500
42,361
49,861
31,965
5,530
87,356
77,946
15,295
62,650
8,799
1,399
46,278
9,557
20,156
12,327
4,237
31,771
29,042
2,729
14,507
87,355
FY15
7,500
49,386
56,886
32,738
7,270
96,894
87,869
18,443
69,426
7,469
900
33,392
8,826
13,428
3,641
7,497
14,292
12,356
1,936
19,100
96,894
FY16
7,500
58,640
66,140
22,329
5,886
94,355
90,214
22,109
68,105
15,505
4,606
36,046
2,461
9,885
21,767
1,932
29,907
29,752
155
6,139
94,354
FY17
7,500
73,439
80,939
14,500
7,302
102,741
110,507
26,277
84,230
486
4,322
49,253
5,405
12,108
3,210
28,530
35,550
35,390
160
13,703
102,741
FY18E
15,000
81,057
96,057
16,000
7,302
119,359
113,946
30,587
83,359
2,047
4,322
64,921
6,460
11,698
15,249
31,513
35,290
30,245
5,045
29,631
119,359
FY19E
15,000
100,472
115,472
100
7,302
122,874
116,446
36,347
80,099
4,547
4,322
74,750
8,082
14,657
20,089
31,921
40,844
34,365
6,479
33,906
122,874
(INR Million)
FY20E
15,000
120,171
135,171
100
7,302
142,572
118,946
42,231
76,714
7,047
4,322
95,735
8,202
14,890
41,009
31,635
41,246
34,673
6,573
54,489
142,572
25 September 2017
5

Petronet LNG
Financials and Valuations
Standalone - Income Statement
Y/E March
Total Income from Operations
Ratios
(%)
Change
Y/E
Materials
Raw
March
Basic (INR)
Employees Cost
EPS
Other Expenses
Cash EPS
Total Expenditure
BV/Share
% of Sales
DPS
EBITDA
Payout (%)
Margin (%)
Depreciation
Valuation (x)
EBIT
P/E
Int. and Finance Charges
Cash P/E
Other Income
P/BV
PBT bef. EO Exp.
EV/Sales
EO Items
EV/EBITDA
PBT after EO Exp.
Dividend Yield (%)
Total Tax
FCF per share
Tax Rate (%)
Return Ratios (%)
Reported PAT
RoE
Adjusted PAT
RoCE
Change (%)
RoIC
Margin (%)
Working Capital Ratios
Asset Turnover (x)
Standalone - Balance Sheet
Inventory (Days)
Y/E March
Debtor (Days)
Equity Share Capital
Leverage Ratio
Total Reserves
(x)
Net Debt/Equity
Net Worth
Total Loans
Standalone - Cash Flow Statement
Deferred Tax Liabilities
Y/E March
Capital Employed
OP/(Loss) before Tax
Gross Block
Depreciation
Less: Accum. Deprn.
Direct Taxes Paid
Net Fixed Assets
(Inc)/Dec in WC
Capital WIP
CF from Operations
Total Investments
Others
CF from Operating incl EO
Curr. Assets, Loans&Adv.
(Inc)/Dec in FA
Inventory
Free Cash Flow
Account Receivables
(Pur)/Sale of Investments
Cash and Bank Balance
Others
Loans and Advances
CF from Investments
Curr. Liability & Prov.
Issue of Shares
Account Payables
Inc/(Dec)
Provisions in Debt
Dividend Paid
Net Current Assets
Others
Appl. of Funds
CF from Fin. Activity
E: MOSL Estimates
Inc/Dec of Cash
Opening Balance
Closing Balance
FY13
7.7
8.9
29.7
2.5
38.2
FY13
314,674
38.6
FY14
292,098
370
4.7
2,819
6.8
295,287
33.2
93.8
1.0
19,388
24.7
6.2
1,866
17,522
1,184
865
17,203
0
17,203
0.4
5,710
-0.3
33.2
11,493
15.1
11,493
11.2
8.7
19.4
3.7
0.0
4.3
9
FY13
7,50019
36,997
0.4
44,497
27,182
3,910
FY14
75,589
10,545
35,796
3,081
12,217
-3,426
23,579
-7,559
43,305
2,641
1,399
4,620
7,261
42,546
-7,647
10,366
-386
16,898
0
12,685
2,596 0
-7,647
35,239
32,940 0
1,782
2,299
-1,755
7,306
75,589
0
0
28
-358
12,685
12,327
FY14
377,476
20.0
FY15
358,495
466
5.0
3,530
7.1
362,491
37.9
96.0
2.0
14,984
39.8
4.0
3,081
11,903
45.7
2,196
32.2
838
6.0
10,545
0.9
0
25.9
10,545
0.9
3,426
-1.4
32.5
7,119
14.1
7,119
11.8
-38.1
11.9
1.9
0.0
4.1
8
FY14
12
7,500
42,361
0.5
49,861
28,965
5,530
FY15
84,356
9,849
77,946
3,154
15,295
-1,024
62,650
-13,279
8,799
-1,300
1,399
7,740
6,440
46,278
-8,599
9,557
-2,159
20,157
499
12,327
4,2370
-8,100
34,771
1,710
32,042
-5,227
2,729
-3,510
11,507
84,356
0
-7,027
0
-8,686
12,327
3,641
FY15
395,010
4.6
FY16
376,109
571
5.6
3,940
7.8
380,620
44.1
96.4
2.5
14,390
48.0
3.6
3,154
11,236
40.8
2,935
29.5
1,548
5.2
9,849
1.3
0
21.6
9,849
1.1
1,024
15.4
10.4
8,825
13.7
8,825
11.6
24.0
13.3
2.2
0.0
2.9
3
FY15
13
7,500
49,386
-0.1
56,886
23,738
7,270
FY16
87,894
11,992
87,869
3,216
18,443
-2,860
69,426
17,087
7,469
29,435
900
3,616
33,051
33,392
-9,931
8,826
23,120
13,428
-3,706
3,641
0
7,497
-13,637
23,292
4,508
21,356
-1,409
1,936
-4,387
10,100
0
87,894
-1,288
0
18,126
3,641
21,767
FY16
271,334
-31.3
FY17
250,757
717
11.4
3,958
13.8
255,431
54.0
94.1
2.5
15,903
25.7
5.9
3,216
12,687
20.1
2,388
16.5
1,704
4.2
12,004
1.4
13.7 0
12,004
1.1
2,864
-5.8
23.9
9,140
23.2
9,140
20.2
3.6
21.8
3.4
0.0
2.4
8
FY16
18
7,500
56,264
0.1
63,764
20,610
8,710
FY17
93,084
23,602
90,377
3,691
22,109
-6,545
68,268
-25,979
15,342
-5,232
900
1,274
-3,958
39,970
-4,796
2,461
-8,754
9,885
283
21,829
0
5,795
-4,513
31,396
2,130
28,811
-7,829
2,585
-4,387
8,574
0
93,084
-10,086
0
-18,557
21,767
3,210
FY17E
244,693
-9.8
FY18E
217,269
742
14.0
4,032
16.9
222,043
64.0
90.7
3.4
22,650
28.1
9.3
3,527
19,123
16.3
1,596
13.5
2,957
3.6
20,484
1.3
11.1 0
20,484
1.5
6,310
11.0
30.8
14,173
23.8
14,173
21.0
55.1
19.4
5.8
0.0
2.2
9
FY17E
16
7,500
66,458
0.0
73,958
25,000
8,710
FY18E
107,668
30,193
92,946
4,310
25,635
-9,173
67,311
-3,889
22,773
21,442
900
0
21,442
49,431
-5,000
6,083
16,442
10,726
0
27,450
0
5,172
-5,000
32,747
0
29,345
1,500
3,402
-5,902
16,685
0
107,668
-4,403
0
12,039
3,210
15,249
(INR Million)
FY18E
FY19E
280,964
375,426
14.8
33.6
FY19E
FY20E
243,304
324,705
871
1,341
18.0
18.3
6,352
8,655
21.8
22.2
250,526
334,702
77.0
90.1
89.2
89.2
4.3
4.4
30,438
40,725
28.1
28.1
10.8
10.8
3,979
5,760
26,459
34,965
12.7
12.5
1,435
564
10.5
10.3
3,735
4,468
3.0
2.5
28,759
38,869
1.0
0.9
0
8.2
7.50
28,759
38,869
1.9
1.9
8,628
11,661
18.9
19.1
30.0
30.0
20,132
27,208
25.5
21.9
20,132
27,208
24.1
21.8
42.0
35.2
24.6
24.7
7.2
7.2
0.0
0.0
2.4
2.7
(INR Million)
9
9
FY18E
FY19E
16
16
7,500
7,500
80,937
100,505
-0.2
-0.3
88,437
108,005
16,000
100
(INR Million)
8,710
8,710
FY19E
FY20E
113,147
116,815
38,564
41,492
113,946
116,446
5,760
5,885
29,614
35,374
-11,569
-14,103
84,332
81,072
565
337
6,773
9,273
33,320
33,611
900
0
900
0
33,320
33,611
57,351
69,317
-5,000
-5,000
6,864
9,170
28,320
28,611
12,316
16,457
0
0
34,802
39,658
0
3,3680
4,032
-5,000
-5,000
36,209
43,746
0
0
31,377
37,216
-15,900
0
4,831
6,530
-7,580
-7,691
21,142
25,570
0
113,147
0
116,815
-23,480
-7,691
0
0
4,840
20,920
15,249
20,089
20,089
41,009
1.1
5.5
28.8
17.9
51.2
4.2
12
20
0.3
FY13
17,203
1,866
-5,710
5,194
18,552
280
18,832
-10,635
8,197
0
0
-10,635
2,194
-3,158
-4,387
0
-5,351
2,846
9,839
12,685
25 September 2017
6

Petronet LNG
NOTES
25 September 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
Petronet LNG
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.
Disclosure of Interest Statement
Analyst ownership of the stock
Petronet LNG
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
25 September 2017
8