Zee Entertainment
BSE SENSEX
31,814
S&P CNX
9,980
9 October 2017
Company Update | Sector: Media
CMP: INR523
TP: INR630 (+20%)
Buy
Acquires 9X Media, expands music portfolio
Additional channels to contribute 5% of domestic ad revenue
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/(USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
Zee announced the acquisition of 9X Media’s six music channels for INR1.6b, which
will be paid in cash. These six channels across four languages – 9XM (Latest
Financials & Valuations (INR b)
Bollywood), 9X Jalwa (Evergreen Hindi), 9X Jhakaas (Marathi), 9X Tashan (Punjabi),
Y/E MARCH
2017 2018E 2019E
9XO (English), and 9X Bajao (Hindi Classics) – will allow Zee to expand its portfolio
Net Sales
64.3
64.6
75.9
from the current 33 channels to 39 channels.
EBITDA
Adj. NP
Adj. EPS (INR)
EPS Gr. (%)
BV/Share (INR)
RoE (%)
RoCE (%)
Div. Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div. Yield (%)
19.3
14.5
13.9
80.7
89.2
19.3
20.7
13.0
37.4
5.8
24.5
0.5
20.3
13.1
12.2
-12.4
95.4
14.7
15.7
22.7
42.6
5.4
22.8
0.5
26.9
18.2
17.8
46.4
106.8
18.7
19.5
19.0
29.1
4.9
16.9
0.6
Z IN
960.5
497.9 / 7.8
575/429
0/-12/-19
1087.0
56.9
Zee has acquired 9X Media’s six music channels for INR1.6b (1x FY17 sales).
9X Media holds ~26% share in the music ad market.
The acquisition allows Zee to widen its TV portfolio and also provides channels to
market its own music/movie production.
We maintain our Buy recommendation for Zee, with a TP of INR630.
Has acquired 9X Media’s six music channels for INR1.6b in cash
Acquired portfolio to contribute 5% of domestic ad revenue
9X Media’s FY17 revenue at INR1.6b is equivalent to 5% of Zee’s domestic ad
revenue and 2% of its consolidated revenue. At the EBITDA level, 9X Media had a
loss of INR51m in FY17. EBITDA margin was 7% in FY16, which turned negative to -
3% in FY17. Over the next 2-3 years, revenue growth coupled with cost synergies
should drive margin accretion.
Benefits for Zee
Shareholding pattern (%)
As On
Jun-17 Mar-17 Jun-16
Promoter
43.1
43.1
43.1
DII
5.7
4.5
3.8
FII
44.7
46.4
48.1
Others
6.6
6.1
5.0
FII Includes depository receipts
Stock Performance (1-year)
Zee Entertainmen
Sensex - Rebased
700
625
550
475
400
1. Deeper inroads to music genre:
Music is 3% of the total TV market, with about
INR6b industry size. 9X Media holds a sizeable ~26% revenue market share. Zee
already has presence in the music genre through Zetc channel, but 9X Media
should allow it to expand reach significantly with a dual brand strategy. It
should also allow it to widen its target market through regional music, with
foray into the Punjabi market.
2. Wider marketing channel for own music/movie production:
These channels
will complement Zee’s music label and movie production business. Currently,
the music production business may be a miniscule 2-3% of total revenue. 9X
Media’s strong distribution will support Zee’s own music and movie production
reach, supporting management guidance of healthy revenue contribution from
movie/music business over the next 3-5 years.
Expect healthy growth; remain positive with TP of INR630
The low revenue/EBITDA contribution does not change our earnings estimates. We
maintain our adjusted EPS estimates of INR12/18 for FY18/19, with CAGR of 13%
over FY17-19. We believe Zee’s efforts to (a) widen TV genre/language presence,
and (b) increased focus on movie/music production and events business should
allow it to sustain healthy earnings growth over the next 3-5 years. RoE of ~20% by
FY19-20 should support healthy valuations.
Buy
with a TP of INR630.
Aliasgar Shakir
(Aliasgar.Shakir@MotilalOswal.com); +91 22 6129 1565
Hafeez Patel
(Hafeez.Patel@MotilalOswal.com); +91 22 6129 1568
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.

Zee Entertainment
Exhibit 1: 9X Media consolidated financials (INR m)
Revenue
EBITDA
FY15
1,480
-104
FY16
1,762
117
FY17
1,586
-51
Exhibit 2: 9XM & 9X Jalwa: Television viewership (m)
9XM
92.5
101.7
77.6
76.5
9X Jalwa
98.8
79.0
EBITDA margin (%)
-7%
7%
-3%
Source: MOSL, Company
Week 37
Week 38
Week 39
Source: MOSL, BARC
Exhibit 3: Market share of 9X Media
9X Media
26%
Others
74%
Source: Industry, MOSL, Company
Exhibit 4: Genre-wise share of TV ad spend
Others
Eng Niche
7%
2%
Kids
Movies Eng
3%
3%
Malayalam Reg
Info
3%
3%
Bengali
4%
Kannada
4%
Marathi
4%
Telugu
5%
Hindi Movies
5%
Music
3%
Sports
8%
Hindi + Eng News
10%
Tamil
9%
Source: Industry, MOSL, Company
Hindi GEC
27%
9 October 2017
2

Zee Entertainment
Exhibit 5: Purchase consideration (INR b)
Sales
9X Media
1.6
Multiple (x)
1
Cash
1.6
Source: MOSL
Exhibit 6: ZEE - ad revenue and YoY growth (INR b, %)
33.7
34.3
28.8
21.5
18.1
15.5
18.5
10.5
17.4
7.3 8.5
15.0
25.4
32.4
24.4
26.5
16.9 15.7
3.4
8.5
0.0 0.8
9.7
4.5 5.3 5.1 4.8 5.3 5.8 6.8 5.8 6.2 6.3 7.4 6.7 7.8 8.3 9.2 8.5 9.1 9.6 9.6
Source: Company, MOSL
Exhibit 7: ZEE - subscription revenue trend (INR m)
International
Domestic
Source: Company, MOSL
Exhibit 8: ZEE - trend in EBITDA and margins ex-sports (INR b)
EBITDA (ex sports)
37
36
39
41
37 39 37 35 37 34
31
34
32 33
30 30
EBITDA margin (ex sports) (%)
35
35
40
29 31
35 34
21
26 28
32 32 31 34 34 33 31
Source: Company, MOSL
9 October 2017
3

Zee Entertainment
Exhibit 9: Zee Entertainment: A snapshot (INR b)
FY12
Advertisement Revenue
YoY (%)
Subscription Revenue
YoY (%)
- Domestic
YoY (%)
- International
YoY (%)
Other Sales & Sevices
YoY (%)
Total Revenue
YoY (%)
Operating expenses
YoY (%)
EBITDA
YoY (%)
EBITDA margin (%)
Revenue mix (%)
Ad and broadcast revenue
Subscription revenue
-Domestic
- International
Other sales and services
Sports/Non-sports break-up
Revenue
-Sports
-Non-sports
EBITDA
-Sports
-Non-sports
EBITDA margin (%)
Sports
Non-sports
30.4
3.9
26.5
7.4
-1.5
8.9
24.3
-37.6
33.5
37.0
5.0
32.0
9.5
-0.9
10.4
25.8
-17.5
32.5
44.2
6.6
37.6
12.0
-1.0
13.0
27.2
-14.8
34.6
48.8
5.9
43.0
12.5
-0.8
13.3
25.7
-13.3
31.0
58.1
6.2
52.0
15.1
-0.8
16.0
26.0
-13.3
30.7
64.3
6.8
57.6
19.3
-0.9
20.2
29.9
-13.3
35.0
64.6
0.2
64.4
20.3
0.0
20.3
31.4
0.0
31.5
75.9
0.0
75.9
26.9
0.0
26.9
35.5
0.0
87.8
0.0
87.8
32.1
0.0
32.1
36.6
0.0
52
44
30
13
4
53
44
31
12
3
54
41
30
11
5
54
37
29
8
9
58
35
28
7
7
57
35
28
7
8
62
32
26
6
6
60
34
28
5
6
60
34
29
5
6
15.8
-7
13.2
17
9.2
28
4.0
-2
1.3
25
30.4
3
23.0
5
7.4
-2
24.3
FY13
19.6
24
16.2
23
11.6
26
4.6
14
1.1
-15
37.0
22
27.5
19
9.5
29
25.8
FY14
23.8
21
18.0
11
13.2
13
4.8
6
2.4
113
44.2
20
32.2
17
12.0
26
27.2
FY15
26.6
12
17.9
0
14.2
8
3.7
-23
4.3
80
48.8
10
36.3
13
12.5
4
25.7
FY16
33.7
26
20.6
15
16.3
14
4.3
15
3.9
-9
58.1
19
43.0
18
15.1
21
26.0
FY17
36.7
9
22.6
10
18.2
12
4.4
3
5.0
28
64.3
11
45.1
5
19.3
27
29.9
FY18E
39.9
9
20.5
-9
16.7
-8
3.8
-14
4.2
-16
64.6
0
44.3
-2
20.3
5
31.4
FY19E
45.8
15
25.5
24
21.5
29
4.0
4
4.6
10
75.9
18
49.0
11
26.9
33
35.5
FY20E
52.8
15
29.9
17
25.8
20
4.0
2
5.1
10
87.8
16
55.6
14
32.1
19
36.6
35.5
36.6
Source: Company, MOSL
9 October 2017
4

Zee Entertainment
Financials and Valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
Programming/Production expenses
Employees Cost
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY15
48,837
10.4
20,135
4,498
11,666
36,299
74.3
12,538
25.7
673
11,865
103
2,278
14,040
0
14,040
4,284
30.5
-20
9,776
9,776
9.6
20.0
FY16
58,125
19.0
24,658
4,986
13,345
42,989
74.0
15,136
26.0
777
14,359
1,598
1,951
14,712
-1,004
13,708
5,491
40.1
-14
8,231
8,833
-9.6
15.2
FY17
64,342
10.7
26,295
6,043
12,735
45,073
70.1
19,269
29.9
1,152
18,117
1,372
2,240
18,985
10,030
29,014
6,804
23.5
-8
22,218
14,540
64.6
22.6
FY18E
64,599
0.4
23,576
6,454
14,254
44,285
68.6
20,314
31.4
1,319
18,995
1,377
3,099
20,717
-532
20,185
7,469
37.0
0
12,717
13,052
-10.2
20.2
FY19E
75,924
17.5
25,980
7,334
15,679
48,993
64.5
26,931
35.5
1,494
25,437
1,102
3,665
28,000
0
28,000
9,800
35.0
0
18,200
18,200
39.4
24.0
(INR m)
FY20E
87,771
15.6
29,241
8,441
17,946
55,628
63.4
32,142
36.6
1,657
30,486
827
4,270
33,929
0
33,929
11,875
35.0
0
22,054
22,054
21.2
25.1
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Preference Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
FY15
960
20,192
34,346
55,498
4
22
-531
54,993
6,415
2,925
3,490
7,886
878
14,579
42,694
11,878
10,692
7,365
12,759
14,534
4,204
5,258
5,072
28,160
54,993
FY16
960
17,140
47,079
65,179
22
19
-648
64,573
9,221
3,792
5,429
8,843
1,104
10,501
53,135
13,180
13,482
9,631
16,842
14,439
4,768
9,060
611
38,696
64,573
FY17
960
19,077
65,608
85,645
10
19
-903
84,772
11,181
4,542
6,639
2,676
1,558
13,433
75,160
16,844
13,059
26,133
19,124
14,694
4,891
8,947
856
60,467
84,772
FY18E
960
15,262
75,443
91,665
10
19
-903
90,792
12,808
5,783
7,024
2,676
1,558
13,431
80,220
13,784
13,097
35,697
17,643
14,117
4,681
8,588
848
66,103
90,792
FY19E
960
11,446
90,186
1,02,592
10
19
-903
1,01,719
14,358
7,277
7,081
2,676
1,558
13,431
92,430
15,186
15,393
42,073
19,779
15,457
5,155
9,457
845
76,974
1,01,719
(INR m))
FY20E
960
7,631
1,08,782
1,17,374
10
19
-903
1,16,500
15,768
8,934
6,834
2,676
1,558
13,431
1,09,395
17,065
17,795
52,640
21,895
17,393
5,839
10,712
842
92,001
1,16,500
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
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
9 October 2017
5

Zee Entertainment
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)
Leverage Ratio (x)
Net Debt/Equity
FY15
8.9
9.6
57.8
2.3
26.6
FY16
7.7
8.5
67.9
2.3
31.7
FY17
13.9
15.1
89.2
2.5
13.0
37.4
34.4
5.8
7.3
24.5
0.5
19.0
19.1
75.0
0.9
89
80
31
-0.4
14.6
16.2
40.5
0.9
83
85
30
-0.3
19.3
20.7
51.0
0.8
96
74
28
-0.5
FY18E
12.2
13.5
95.4
2.5
22.7
42.6
38.3
5.4
7.2
22.8
0.5
14.7
15.7
44.9
0.7
78
74
26
-0.5
FY19E
17.8
19.4
106.8
3.0
19.0
29.1
26.8
4.9
6.0
16.9
0.6
18.7
19.5
54.5
0.7
73
74
25
-0.5
FY20E
22.1
23.8
122.2
3.0
15.7
23.5
21.8
4.2
5.1
13.9
0.6
20.1
20.5
51.8
0.8
71
74
24
-0.6
Consolidated - 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 Equity / Pref Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY15
14,040
673
22
-4,164
-2,236
8,335
-1,526
6,809
-1,091
5,718
-954
396
-1,649
0
-1,008
-71
-2,348
0
-3,427
1,733
5,632
7,365
FY16
14,040
777
28
-5,827
-2,497
6,521
788
7,309
-2,716
4,593
-611
4,524
1,197
59
-4
-28
-4,051
-22
-4,046
4,460
5,171
9,631
FY17
16,780
1,152
73
-6,810
-5,670
5,525
1,165
6,690
-2,704
3,986
-2,975
20,664
14,985
0
0
-73
-4,065
0
-4,138
17,537
8,596
26,133
FY18E
20,185
1,319
1,377
-7,469
3,927
19,340
-3,099
16,241
-1,705
14,536
2
4,116
2,413
-3,815
0
-1,377
-2,881
0
-8,073
10,581
25,116
35,697
FY19E
28,000
1,494
1,102
-9,800
-4,494
16,301
-3,665
12,636
-1,551
11,086
0
4,682
3,131
-3,815
0
-1,102
-3,457
0
-8,375
7,393
34,680
42,073
(INR m)
FY20E
33,929
1,657
827
-11,875
-4,461
20,077
-4,270
15,806
-1,410
14,396
0
5,287
3,877
-3,815
0
-827
-3,457
0
-8,100
11,584
41,056
52,640
9 October 2017
6

Zee Entertainment
NOTES
9 October 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), 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.
Zee Entertainment
Disclosure of Interest Statement
Analyst ownership of the stock
Zee Entertainment
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
9 October 2017
8